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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)
Jennifer K. Dulski
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, 2017
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ITEM 1. | REPORTS TO STOCKHOLDERS. |
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Semiannual Report
September 30, 2017 |
Ticker | ||||||||||||||||||||||||||||||||
Class A | Class B | Class C | Class E | Class I | Class N | Class R | Class Y | |||||||||||||||||||||||||
IVY FUNDS | ||||||||||||||||||||||||||||||||
Ivy Advantus Real Estate Securities Fund | IRSAX | IRSBX | IRSCX | IREEX | IREIX | IRSEX | IRSRX | IRSYX | ||||||||||||||||||||||||
Ivy Asset Strategy Fund | WASAX | WASBX | WASCX | IASEX | IVAEX | IASTX | IASRX | WASYX | ||||||||||||||||||||||||
Ivy Balanced Fund | IBNAX | IBNBX | IBNCX | IVYEX | IYBIX | IBARX | IYBFX | IBNYX | ||||||||||||||||||||||||
Ivy Energy Fund | IEYAX | IEYBX | IEYCX | IVEEX | IVEIX | IENRX | IYEFX | IEYYX | ||||||||||||||||||||||||
Ivy LaSalle Global Real Estate Fund | IREAX | IREBX | IRECX | IRESX | IRENX | IRERX | IREYX | |||||||||||||||||||||||||
Ivy LaSalle Global Risk-Managed Real Estate Fund | IVRAX | IVRBX | IVRCX | IVIRX | IVRNX | IVRRX | IVRYX | |||||||||||||||||||||||||
Ivy Natural Resources Fund | IGNAX | IGNBX | IGNCX | IGNEX | IGNIX | INRSX | IGNRX | IGNYX | ||||||||||||||||||||||||
Ivy Science and Technology Fund | WSTAX | WSTBX | WSTCX | ISTEX | ISTIX | ISTNX | WSTRX | WSTYX |
IVY INVESTMENTS® 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.
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CONTENTS | IVY FUNDS |
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30 | ||
33 | ||
37 | ||
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44 | ||
60 | ||
79 | ||
82 | ||
82 | ||
82 |
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
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PRESIDENT’S LETTER | IVY FUNDS |
SEPTEMBER 30, 2017 (UNAUDITED) | ||
Philip J. Sanders, CFA |
Dear Shareholder,
Over the past six months, investors have endured concerns about global economic growth, the level of interest rates, fluctuation in oil prices and transition to a new U.S. presidential administration. Following the election, domestic equity markets rose sharply and bond yields saw a slight rise, with both trends carrying into the third quarter of 2017. See the table for a fiscal year-over-year comparison of some common market metrics.
Many investors may be unsettled by the prospect that continued change — in leadership of key countries around the world, in government policy, in interest rate levels — will contribute to market volatility and general uncertainty. While that may be true at times, we believe it is important to stay focused on the fundamentals and merits of sectors, industries and companies when making investment decisions. Those fundamentals historically have tended to outweigh external factors such as government policies and regulations. While government policies can affect every business and investor, we think the innovation and management skill within individual companies ultimately drive long-term stock prices.
By the end of your funds’ semi-annual fiscal period, the U.S. economy remained fundamentally sound, supported primarily by the U.S. consumer, who is benefitting from lower energy prices, lower inflation in general and an improved labor market. Overall, the global economy has improved over the past year. In particular, economic growth in the eurozone has accelerated, benefitting from domestic policy stimulus and improving external demand.
The U.S. Federal Reserve (Fed) has hiked interest rates four times since late 2015. We think the Fed will raise rates again in December 2017 and two more times in 2018. The Fed also recently announced that it would begin to reduce its balance sheet starting October 2017 by allowing maturing Treasury and mortgage-backed securities to roll off. We think most financial markets already are pricing the drawdown into their projections and do not expect major volatility as a result of the Fed’s actions. We believe job growth and inflation will be the most important determinants in the direction of long-term central bank policy. Overseas, a better economic outlook has caused the European Central Bank to consider adjusting its policies.
While challenges remain, we see potential catalysts for growth in several areas and industries and our team continues to seek investment opportunities around the globe.
Economic Snapshot
9/30/2017 | 3/31/2017 | |||||||
S&P 500 Index | 2,519.36 | 2,362.72 | ||||||
MSCI EAFE Index | 1,973.81 | 1,792.98 | ||||||
10-Year Treasury Yield | 2.33% | 2.40% | ||||||
U.S. unemployment rate | 4.2% | 4.5% | ||||||
30-year fixed mortgage rate | 3.83% | 4.14% | ||||||
Oil price per barrel | $ | 51.67 | $ | 50.60 |
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 the Ivy Funds and are current only through the end of the period of the report, as stated on the cover. The President’s views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.
2017 | SEMIANNUAL REPORT | 3 |
Table of Contents
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, 2017.
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 X to the Financial Statements for further information.
Actual(1) | Hypothetical(2) | Annualized Expense Ratio Based on the Six-Month Period | ||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy Advantus Real Estate Securities Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,030.00 | $ | 7.21 | $ | 1,000 | $ | 1,017.99 | $ | 7.16 | 1.41% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,025.10 | $ | 12.05 | $ | 1,000 | $ | 1,013.16 | $ | 11.98 | 2.37% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,026.30 | $ | 11.14 | $ | 1,000 | $ | 1,014.10 | $ | 11.08 | 2.19% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,030.00 | $ | 7.31 | $ | 1,000 | $ | 1,017.84 | $ | 7.26 | 1.43% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,032.00 | $ | 5.38 | $ | 1,000 | $ | 1,019.77 | $ | 5.35 | 1.06% | |||||||||||||||
Class N**** | $ | 1,000 | $ | 1,032.90 | $ | 4.47 | $ | 1,000 | $ | 1,020.65 | $ | 4.45 | 0.88% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,028.70 | $ | 8.42 | $ | 1,000 | $ | 1,016.77 | $ | 8.37 | 1.65% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,030.90 | $ | 6.50 | $ | 1,000 | $ | 1,018.71 | $ | 6.46 | 1.27% |
See footnotes on page 6.
4 | SEMIANNUAL REPORT | 2017 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES | IVY FUNDS |
(UNAUDITED)
Actual(1) | Hypothetical(2) | Annualized Expense Ratio Based on the Six-Month Period | ||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy Asset Strategy Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,075.00 | $ | 6.12 | $ | 1,000 | $ | 1,019.12 | $ | 5.96 | 1.19% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,071.50 | $ | 10.15 | $ | 1,000 | $ | 1,015.29 | $ | 9.87 | 1.95% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,071.50 | $ | 9.94 | $ | 1,000 | $ | 1,015.49 | $ | 9.67 | 1.91% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,075.60 | $ | 5.50 | $ | 1,000 | $ | 1,019.75 | $ | 5.35 | 1.03% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,077.20 | $ | 4.67 | $ | 1,000 | $ | 1,020.61 | $ | 4.55 | 0.89% | |||||||||||||||
Class N**** | $ | 1,000 | $ | 1,077.80 | $ | 3.95 | $ | 1,000 | $ | 1,021.29 | $ | 3.84 | 0.76% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,073.70 | $ | 7.78 | $ | 1,000 | $ | 1,017.57 | $ | 7.57 | 1.50% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,075.30 | $ | 5.91 | $ | 1,000 | $ | 1,019.37 | $ | 5.76 | 1.14% | |||||||||||||||
Ivy Balanced Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,030.30 | $ | 5.68 | $ | 1,000 | $ | 1,019.43 | $ | 5.65 | 1.13% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,026.30 | $ | 9.52 | $ | 1,000 | $ | 1,015.72 | $ | 9.47 | 1.86% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,026.40 | $ | 9.32 | $ | 1,000 | $ | 1,015.89 | $ | 9.27 | 1.83% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 1,031.00 | $ | 4.98 | $ | 1,000 | $ | 1,020.19 | $ | 4.95 | 0.97% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,031.30 | $ | 4.47 | $ | 1,000 | $ | 1,020.66 | $ | 4.45 | 0.88% | |||||||||||||||
Class N**** | $ | 1,000 | $ | 1,032.00 | $ | 3.66 | $ | 1,000 | $ | 1,021.47 | $ | 3.64 | 0.72% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,028.20 | $ | 7.40 | $ | 1,000 | $ | 1,017.73 | $ | 7.36 | 1.46% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,029.80 | $ | 5.68 | $ | 1,000 | $ | 1,019.44 | $ | 5.65 | 1.12% | |||||||||||||||
Ivy Energy Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 864.70 | $ | 6.99 | $ | 1,000 | $ | 1,017.60 | $ | 7.57 | 1.49% | |||||||||||||||
Class B** | $ | 1,000 | $ | 860.90 | $ | 11.26 | $ | 1,000 | $ | 1,012.94 | $ | 12.18 | 2.42% | |||||||||||||||
Class C | $ | 1,000 | $ | 861.20 | $ | 10.14 | $ | 1,000 | $ | 1,014.17 | $ | 10.98 | 2.17% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 866.50 | $ | 5.60 | $ | 1,000 | $ | 1,019.03 | $ | 6.06 | 1.20% | |||||||||||||||
Class I | $ | 1,000 | $ | 865.90 | $ | 5.22 | $ | 1,000 | $ | 1,019.49 | $ | 5.65 | 1.11% | |||||||||||||||
Class N**** | $ | 1,000 | $ | 866.50 | $ | 4.48 | $ | 1,000 | $ | 1,020.30 | $ | 4.85 | 0.95% | |||||||||||||||
Class R | $ | 1,000 | $ | 863.60 | $ | 8.01 | $ | 1,000 | $ | 1,016.51 | $ | 8.67 | 1.71% | |||||||||||||||
Class Y | $ | 1,000 | $ | 865.10 | $ | 6.34 | $ | 1,000 | $ | 1,018.28 | $ | 6.86 | 1.35% | |||||||||||||||
Ivy LaSalle Global Real Estate Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,028.20 | $ | 7.71 | $ | 1,000 | $ | 1,017.50 | $ | 7.67 | 1.51% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,026.40 | $ | 11.25 | $ | 1,000 | $ | 1,014.00 | $ | 11.18 | 2.21% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,025.40 | $ | 11.75 | $ | 1,000 | $ | 1,013.46 | $ | 11.68 | 2.32% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,031.10 | $ | 5.38 | $ | 1,000 | $ | 1,019.80 | $ | 5.35 | 1.05% | |||||||||||||||
Class N**** | $ | 1,000 | $ | 1,018.20 | $ | 5.35 | $ | 1,000 | $ | 1,019.80 | $ | 5.35 | 1.05% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,027.30 | $ | 9.22 | $ | 1,000 | $ | 1,016.02 | $ | 9.17 | 1.81% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,028.90 | $ | 7.41 | $ | 1,000 | $ | 1,017.78 | $ | 7.36 | 1.45% |
See footnotes on page 6.
2017 | SEMIANNUAL REPORT | 5 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES | IVY FUNDS |
(UNAUDITED)
Actual(1) | Hypothetical(2) | Annualized Expense Ratio Based on the Six-Month Period | ||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy LaSalle Global Risk-Managed Real Estate Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,010.30 | $ | 7.64 | $ | 1,000 | $ | 1,017.50 | $ | 7.67 | 1.51% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,005.60 | $ | 11.53 | $ | 1,000 | $ | 1,013.57 | $ | 11.58 | 2.29% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,005.60 | $ | 11.63 | $ | 1,000 | $ | 1,013.47 | $ | 11.68 | 2.31% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,011.20 | $ | 5.83 | $ | 1,000 | $ | 1,019.25 | $ | 5.86 | 1.16% | |||||||||||||||
Class N**** | $ | 1,000 | $ | 1,015.90 | $ | 5.85 | $ | 1,000 | $ | 1,019.27 | $ | 5.86 | 1.16% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,006.50 | $ | 9.63 | $ | 1,000 | $ | 1,015.52 | $ | 9.67 | 1.91% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,009.30 | $ | 7.64 | $ | 1,000 | $ | 1,017.50 | $ | 7.67 | 1.51% | |||||||||||||||
Ivy Natural Resources Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 981.80 | $ | 8.72 | $ | 1,000 | $ | 1,016.25 | $ | 8.87 | 1.76% | |||||||||||||||
Class B** | $ | 1,000 | $ | 976.10 | $ | 14.82 | $ | 1,000 | $ | 1,010.06 | $ | 15.08 | 2.99% | |||||||||||||||
Class C | $ | 1,000 | $ | 979.00 | $ | 11.87 | $ | 1,000 | $ | 1,013.02 | $ | 12.08 | 2.40% | |||||||||||||||
Class E | $ | 1,000 | $ | 984.20 | $ | 6.35 | $ | 1,000 | $ | 1,018.69 | $ | 6.46 | 1.27% | |||||||||||||||
Class I | $ | 1,000 | $ | 984.40 | $ | 6.15 | $ | 1,000 | $ | 1,018.86 | $ | 6.26 | 1.24% | |||||||||||||||
Class N**** | $ | 1,000 | $ | 985.80 | $ | 5.26 | $ | 1,000 | $ | 1,019.76 | $ | 5.35 | 1.06% | |||||||||||||||
Class R | $ | 1,000 | $ | 982.20 | $ | 9.02 | $ | 1,000 | $ | 1,016.00 | $ | 9.17 | 1.81% | |||||||||||||||
Class Y | $ | 1,000 | $ | 983.50 | $ | 7.24 | $ | 1,000 | $ | 1,017.74 | $ | 7.36 | 1.46% | |||||||||||||||
Ivy Science and Technology Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,159.70 | $ | 6.80 | $ | 1,000 | $ | 1,018.82 | $ | 6.36 | 1.25% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,155.40 | $ | 10.88 | $ | 1,000 | $ | 1,014.93 | $ | 10.18 | 2.02% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,155.70 | $ | 10.67 | $ | 1,000 | $ | 1,015.16 | $ | 9.98 | 1.98% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,159.70 | $ | 7.02 | $ | 1,000 | $ | 1,018.55 | $ | 6.56 | 1.30% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,161.30 | $ | 5.40 | $ | 1,000 | $ | 1,020.09 | $ | 5.05 | 0.99% | |||||||||||||||
Class N**** | $ | 1,000 | $ | 1,162.20 | $ | 4.65 | $ | 1,000 | $ | 1,020.81 | $ | 4.34 | 0.85% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,157.80 | $ | 8.63 | $ | 1,000 | $ | 1,017.12 | $ | 8.07 | 1.59% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,159.90 | $ | 6.70 | $ | 1,000 | $ | 1,018.87 | $ | 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, 2017, 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. |
**** | Effective March 3, 2017 Class R6 has been renamed Class N. |
(1) | This section uses the Fund’s actual total return and actual Fund expenses. It is a guide to the actual expenses paid by the Fund in the period. The “Ending Account Value” shown is computed using the Fund’s actual return and the “Expenses Paid During Period” column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the last column of this section. |
(2) | This section uses a hypothetical five percent annual return and actual Fund expenses. It helps to compare the Fund’s ongoing costs with other mutual funds. A shareholder can compare the Fund’s ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads or exchange fees.
6 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY ADVANTUS REAL ESTATE SECURITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 96.8% | |||
Real Estate | 96.8% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 3.2% |
Lipper Rankings
Category: Real Estate Funds | Rank | Percentile | ||||
1 Year | 156/261 | 60 | ||||
3 Year | 113/229 | 50 | ||||
5 Year | 103/203 | 51 | ||||
10 Year | 89/137 | 65 |
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 | ||
Equinix, Inc. | Real Estate | Specialized REITs | ||
ProLogis, Inc. | Real Estate | Industrial REITs | ||
Alexandria Real Estate Equities, Inc. | Real Estate | Office REITs | ||
Vornado Realty Trust | Real Estate | Office REITs | ||
Mid-America Apartment Communities, Inc. | Real Estate | Residential REITs | ||
Welltower, Inc. | Real Estate | Health Care REITs | ||
Essex Property Trust, Inc. | Real Estate | Residential REITs | ||
Duke Realty Corp. | Real Estate | Industrial REITs | ||
AvalonBay Communities, Inc. | Real Estate | Residential 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. |
2017 | SEMIANNUAL REPORT | 7 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ADVANTUS REAL ESTATE SECURITIES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Real Estate |
| |||||||
Diversified REITs – 3.1% |
| |||||||
Liberty Property Trust | 253 | $ | 10,376 | |||||
STORE Capital Corp. | 288 | 7,160 | ||||||
|
| |||||||
17,536 | ||||||||
|
| |||||||
Health Care REITs – 8.9% |
| |||||||
HCP, Inc. | 366 | 10,191 | ||||||
Healthcare Trust of America, Inc., Class A | 242 | 7,206 | ||||||
Physicians Realty Trust | 205 | 3,627 | ||||||
Ventas, Inc. | 196 | 12,741 | ||||||
Welltower, Inc. | 243 | 17,050 | ||||||
|
| |||||||
50,815 | ||||||||
|
| |||||||
Hotel & Resort REITs – 5.3% |
| |||||||
Apple Hospitality REIT, Inc. | 281 | 5,321 | ||||||
Hilton Worldwide Holdings, Inc. | 80 | 5,528 | ||||||
Host Hotels & Resorts, Inc. | 466 | 8,614 | ||||||
RLJ Lodging Trust | 193 | 4,237 | ||||||
Sunstone Hotel Investors, Inc. | 387 | 6,213 | ||||||
|
| |||||||
29,913 | ||||||||
|
| |||||||
Industrial REITs – 8.9% |
| |||||||
Duke Realty Corp. | 546 | 15,747 | ||||||
First Industrial Realty Trust, Inc. | 215 | 6,473 | ||||||
ProLogis, Inc. | 420 | 26,681 | ||||||
Rexford Industrial Realty, Inc. | 72 | 2,052 | ||||||
|
| |||||||
50,953 | ||||||||
|
| |||||||
Office REITs – 16.8% |
| |||||||
Alexandria Real Estate Equities, Inc. | 171 | 20,296 | ||||||
Boston Properties, Inc. | 52 | 6,365 | ||||||
Brandywine Realty Trust | 646 | 11,300 | ||||||
Corporate Office Properties Trust | 150 | 4,918 | ||||||
Highwoods Properties, Inc. | 165 | 8,611 | ||||||
Kilroy Realty Corp. | 187 | 13,290 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Office REITs (Continued) |
| |||||||
SL Green Realty Corp. | 110 | $ | 11,159 | |||||
Vornado Realty Trust | 256 | 19,651 | ||||||
|
| |||||||
95,590 | ||||||||
|
| |||||||
Residential REITs – 21.3% |
| |||||||
American Campus Communities, Inc. | 96 | 4,221 | ||||||
American Homes 4 Rent | 390 | 8,456 | ||||||
Apartment Investment and Management Co., Class A | 165 | 7,231 | ||||||
AvalonBay Communities, Inc. | 87 | 15,583 | ||||||
Camden Property Trust | 119 | 10,892 | ||||||
Equity Residential | 157 | 10,343 | ||||||
Essex Property Trust, Inc. | 63 | 15,921 | ||||||
Invitation Homes, Inc. | 130 | 2,945 | ||||||
Mid-America Apartment Communities, Inc. | 171 | 18,319 | ||||||
Sun Communities, Inc. | 171 | 14,651 | ||||||
UDR, Inc. | 326 | 12,409 | ||||||
|
| |||||||
120,971 | ||||||||
|
| |||||||
Retail REITs – 18.9% |
| |||||||
Agree Realty Corp. | 174 | 8,545 | ||||||
Brixmor Property Group, Inc. | 515 | 9,682 | ||||||
GGP, Inc. | 471 | 9,775 | ||||||
Kimco Realty Corp. | 561 | 10,962 | ||||||
National Retail Properties, Inc. | 184 | 7,670 | ||||||
Realty Income Corp. | 133 | 7,578 | ||||||
Regency Centers Corp. | 202 | 12,501 | ||||||
Simon Property Group, Inc. | 253 | 40,715 | ||||||
|
| |||||||
107,428 | ||||||||
|
| |||||||
Specialized REITs – 13.6% |
| |||||||
CubeSmart | 63 | 1,629 | ||||||
CyrusOne, Inc. | 163 | 9,588 | ||||||
Digital Realty Trust, Inc. | 88 | 10,354 | ||||||
Entertainment Properties Trust | 68 | 4,721 | ||||||
Equinix, Inc. | 64 | 28,768 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Specialized REITs (Continued) |
| |||||||
Extra Space Storage, Inc. | 136 | $ | 10,893 | |||||
Public Storage, Inc. | 54 | 11,512 | ||||||
|
| |||||||
77,465 | ||||||||
|
| |||||||
Total Real Estate – 96.8% |
| 550,671 | ||||||
TOTAL COMMON STOCKS – 96.8% |
| $ | 550,671 | |||||
(Cost: $411,437) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (A) – 2.2% |
| |||||||
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.), | ||||||||
1.180%, 10–5–17 | $ | 5,000 | 4,999 | |||||
Kroger Co. (The), | ||||||||
1.300%, 10–2–17 | 5,378 | 5,377 | ||||||
Medtronic Global Holdings SCA, | ||||||||
1.231%, 10–2–17 | 2,000 | 2,000 | ||||||
|
| |||||||
12,376 | ||||||||
|
| |||||||
Master Note – 0.3% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | �� | |||||||
1.450%, 10–4–17 (B) | 1,724 | 1,724 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 2.5% |
| $ | 14,100 | |||||
(Cost: $14,101) |
| |||||||
TOTAL INVESTMENT SECURITIES – 99.3% |
| $ | 564,771 | |||||
(Cost: $425,538) |
| |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7% |
| 4,239 | ||||||
NET ASSETS – 100.0% |
| $ | 569,010 |
Notes to Schedule of Investments
(A) | Rate shown is the yield to maturity at September 30, 2017. |
(B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 550,671 | $ | — | $ | — | ||||||
Short-Term Securities | — | 14,100 | — | |||||||||
Total | $ | 550,671 | $ | 14,100 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
REIT = Real Estate Investment Trusts
See Accompanying Notes to Financial Statements.
8 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY ASSET STRATEGY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 76.4% | |||
Information Technology | 15.4% | |||
Financials | 14.0% | |||
Industrials | 11.8% | |||
Consumer Discretionary | 10.7% | |||
Energy | 8.6% | |||
Consumer Staples | 8.2% | |||
Health Care | 5.1% | |||
Materials | 1.6% | |||
Telecommunication Services | 1.0% | |||
Bullion (Gold) | 5.7% | |||
Purchased Options | 0.0% | |||
Bonds | 9.2% | |||
Other Government Securities | 4.5% | |||
United States Government Obligations | 4.1% | |||
Corporate Debt Securities | 0.6% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 8.7% |
Lipper Rankings
Category: Alternative Global Macro Funds | Rank | Percentile | ||||
1 Year | 33/298 | 12 | ||||
3 Year | 226/264 | 86 | ||||
5 Year | 52/204 | 26 | ||||
10 Year | 19/58 | 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 | 55.7% | |||
United States | 52.8% | |||
Other North America | 2.9% | |||
Europe | 16.0% | |||
France | 4.9% | |||
United Kingdom | 3.8% | |||
Other Europe | 7.3% | |||
Pacific Basin | 11.1% | |||
Japan | 4.2% | |||
Other Pacific Basin | 6.9% | |||
Bullion (Gold) | 5.7% | |||
South America | 2.8% | |||
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options | 8.7% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
JPMorgan Chase & Co. | United States | Financials | Other Diversified Financial Services | |||
Microsoft Corp. | United States | Information Technology | Systems Software | |||
Philip Morris International, Inc. | United States | Consumer Staples | Tobacco | |||
Adobe Systems, Inc. | United States | Information Technology | Application Software | |||
AIA Group Ltd. | Hong Kong | Financials | Life & Health Insurance | |||
Alibaba Group Holding Ltd. ADR | China | Information Technology | Internet Software & Services | |||
Pfizer, Inc. | United States | Health Care | Pharmaceuticals | |||
Alphabet, Inc., Class A | United States | Information Technology | Internet Software & Services | |||
EOG Resources, Inc. | United States | Energy | Oil & Gas Exploration & Production | |||
Lockheed Martin Corp. | United States | Industrials | Aerospace & Defense |
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. |
2017 | SEMIANNUAL REPORT | 9 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Auto Parts & Equipment – 1.6% |
| |||||||
Delphi Automotive plc | 582 | $ | 57,229 | |||||
|
| |||||||
Automobile Manufacturers – 2.4% |
| |||||||
Bayerische Motoren Werke AG (A) | 448 | 45,487 | ||||||
Suzuki Motor Corp. (A) | 826 | 43,325 | ||||||
|
| |||||||
88,812 | ||||||||
|
| |||||||
Cable & Satellite – 0.3% |
| |||||||
Altice USA, Inc., Class A (B) | 444 | 12,137 | ||||||
|
| |||||||
Home Improvement Retail – 2.5% |
| |||||||
Home Depot, Inc. (The) | 350 | 57,279 | ||||||
Lowe’s Co., Inc. | 410 | 32,759 | ||||||
|
| |||||||
90,038 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail – 1.5% |
| |||||||
Amazon.com, Inc. (B) | 59 | 56,662 | ||||||
|
| |||||||
Leisure Products – 0.5% |
| |||||||
Media Group Holdings LLC, Series H (B)(C)(D)(E)(F) | 640 | 3,000 | ||||||
Media Group Holdings LLC, Series T (B)(C)(D)(E)(F) | 80 | 15,140 | ||||||
|
| |||||||
18,140 | ||||||||
|
| |||||||
Movies & Entertainment – 1.1% |
| |||||||
Liberty Media Corp., Class C (B)(C) | 1,058 | 39,814 | ||||||
|
| |||||||
Tires & Rubber – 0.8% |
| |||||||
Bridgestone Corp. (A) | 653 | 29,609 | ||||||
|
| |||||||
Total Consumer Discretionary – 10.7% |
| 392,441 | ||||||
Consumer Staples |
| |||||||
Brewers – 0.9% |
| |||||||
InBev N.V. (A) | 291 | 34,888 | ||||||
|
| |||||||
Packaged Foods & Meats – 3.1% |
| |||||||
Kraft Foods Group, Inc. | 440 | 34,158 | ||||||
Mondelez International, Inc., Class A | 898 | 36,500 | ||||||
Nestle S.A., Registered Shares (A) | 520 | 43,508 | ||||||
|
| |||||||
114,166 | ||||||||
|
| |||||||
Soft Drinks – 1.7% |
| |||||||
Coca-Cola Co. (The) | 1,351 | 60,818 | ||||||
|
| |||||||
Tobacco – 2.5% |
| |||||||
ITC Ltd. (A) | 3,507 | 13,868 | ||||||
Philip Morris International, Inc. | 699 | 77,585 | ||||||
|
| |||||||
91,453 | ||||||||
|
| |||||||
Total Consumer Staples – 8.2% |
| 301,325 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Energy |
| |||||||
Oil & Gas Equipment & Services – 2.9% |
| |||||||
Halliburton Co. | 1,283 | $ | 59,077 | |||||
Schlumberger Ltd. | 682 | 47,556 | ||||||
|
| |||||||
106,633 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 4.5% |
| |||||||
Cabot Oil & Gas Corp. | 1,330 | 35,579 | ||||||
EOG Resources, Inc. | 651 | 63,001 | ||||||
Noble Energy, Inc. | 1,291 | 36,599 | ||||||
Pioneer Natural Resources Co. | 191 | 28,159 | ||||||
|
| |||||||
163,338 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 1.2% |
| |||||||
Phillips 66 | 497 | 45,568 | ||||||
|
| |||||||
Total Energy – 8.6% |
| 315,539 | ||||||
Financials |
| |||||||
Diversified Banks – 2.7% |
| |||||||
Axis Bank Ltd. (A) | 4,152 | 32,360 | ||||||
China Construction Bank Corp. (A) | 13,444 | 11,152 | ||||||
Industrial and Commercial Bank of China Ltd., H Shares (A) | 16,181 | 12,014 | ||||||
Wells Fargo & Co. | 762 | 41,997 | ||||||
|
| |||||||
97,523 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 1.1% |
| |||||||
Goldman Sachs Group, Inc. (The) (G) | 178 | 42,334 | ||||||
|
| |||||||
Life & Health Insurance – 3.2% |
| |||||||
AIA Group Ltd. (A) | 10,223 | 75,380 | ||||||
MetLife, Inc. | 744 | 38,630 | ||||||
MetLife, Inc. (B) | 68 | 4,110 | ||||||
|
| |||||||
118,120 | ||||||||
|
| |||||||
Multi-Line Insurance – 1.5% |
| |||||||
Axa S.A. (A) | 1,794 | 54,271 | ||||||
|
| |||||||
Multi-Sector Holdings – 0.9% |
| |||||||
Berkshire Hathaway, Inc., Class B (B) | 174 | 31,879 | ||||||
|
| |||||||
Other Diversified Financial Services – 2.7% |
| |||||||
JPMorgan Chase & Co. | 1,038 | 99,122 | ||||||
|
| |||||||
Property & Casualty Insurance – 0.5% |
| |||||||
Tokio Marine Holdings, Inc. (A) | 453 | 17,720 | ||||||
|
| |||||||
Regional Banks – 1.4% |
| |||||||
PNC Financial Services Group, Inc. (The) | 375 | 50,536 | ||||||
|
| |||||||
Total Financials – 14.0% |
| 511,505 | ||||||
Health Care |
| |||||||
Biotechnology – 1.2% |
| |||||||
Alexion Pharmaceuticals, Inc. (B) | 300 | 42,112 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Health Care Facilities – 0.9% |
| |||||||
HCA Holdings, Inc. (B) | 420 | $ | 33,394 | |||||
|
| |||||||
Pharmaceuticals – 3.0% |
| |||||||
Bayer AG (A) | 293 | 39,920 | ||||||
Pfizer, Inc. | 1,964 | 70,129 | ||||||
|
| |||||||
110,049 | ||||||||
|
| |||||||
Total Health Care – 5.1% |
| 185,555 | ||||||
Industrials |
| |||||||
Aerospace & Defense – 3.8% |
| |||||||
Airbus SE (A) | 627 | 59,563 | ||||||
Lockheed Martin Corp. (G) | 198 | 61,392 | ||||||
United Technologies Corp. | 166 | 19,293 | ||||||
|
| |||||||
140,248 | ||||||||
|
| |||||||
Construction & Engineering – 1.9% |
| |||||||
Larsen & Toubro Ltd. (A) | 2,046 | 35,770 | ||||||
Vinci (A) | 348 | 33,102 | ||||||
|
| |||||||
68,872 | ||||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 1.3% |
| |||||||
PACCAR, Inc. | 682 | 49,307 | ||||||
|
| |||||||
Electrical Components & Equipment – 0.9% |
| |||||||
Schneider Electric S.A. (A) | 372 | 32,350 | ||||||
|
| |||||||
Industrial Conglomerates – 1.1% |
| |||||||
Siemens AG (A) | 290 | 40,841 | ||||||
|
| |||||||
Industrial Machinery – 1.2% |
| |||||||
Parker Hannifin Corp. | 242 | 42,320 | ||||||
|
| |||||||
Railroads – 1.0% |
| |||||||
Union Pacific Corp. | 310 | 35,904 | ||||||
|
| |||||||
Trading Companies & Distributors – 0.6% |
| |||||||
Ferguson plc (A) | 337 | 22,083 | ||||||
|
| |||||||
Total Industrials – 11.8% |
| 431,925 | ||||||
Information Technology |
| |||||||
Application Software – 3.5% |
| |||||||
Adobe Systems, Inc. (B) | 520 | 77,559 | ||||||
Intuit, Inc. | 365 | 51,825 | ||||||
|
| |||||||
129,384 | ||||||||
|
| |||||||
Data Processing & Outsourced Services – 2.3% |
| |||||||
FleetCor Technologies, Inc. (B) | 161 | 24,912 | ||||||
Visa, Inc., Class A | 561 | 59,050 | ||||||
|
| |||||||
83,962 | ||||||||
|
| |||||||
Electronic Equipment & Instruments – 0.5% |
| |||||||
Keyence Corp. (A) | 36 | 19,063 | ||||||
|
| |||||||
Internet Software & Services – 5.1% |
| |||||||
Alibaba Group Holding Ltd. | 407 | 70,258 | ||||||
Alphabet, Inc., Class A (B)(G) | 65 | 63,097 |
10 | SEMIANNUAL REPORT | 2017 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS (Continued) | Shares | Value | ||||||
Internet Software & Services (Continued) |
| |||||||
Facebook, Inc., Class A (B) | 83 | $ | 14,124 | |||||
MercadoLibre, Inc. | 147 | 38,166 | ||||||
|
| |||||||
185,645 | ||||||||
|
| |||||||
Semiconductor Equipment – 1.2% |
| |||||||
ASML Holding N.V., | 266 | 45,350 | ||||||
|
| |||||||
Semiconductors – 0.2% | ||||||||
Renesas Electronics | 527 | 5,744 | ||||||
|
| |||||||
Systems Software – 2.6% | ||||||||
Microsoft Corp. | 1,249 | 93,020 | ||||||
|
| |||||||
Total Information Technology – 15.4% |
| 562,168 | ||||||
Materials | ||||||||
Diversified Metals & Mining – 1.6% | ||||||||
BHP Billiton plc (A) | 1,197 | 21,084 | ||||||
Rio Tinto plc (A) | 817 | 38,043 | ||||||
|
| |||||||
59,127 | ||||||||
|
| |||||||
Total Materials – 1.6% | 59,127 | |||||||
Telecommunication Services | ||||||||
Integrated Telecommunication Services – 1.0% |
| |||||||
Nippon Telegraph and | 809 | 37,085 | ||||||
|
| |||||||
Total Telecommunication Services – 1.0% |
| 37,085 | ||||||
TOTAL COMMON STOCKS – 76.4% |
| $ | 2,796,670 | |||||
(Cost: $2,773,502) |
PURCHASED OPTIONS | Number of Contracts (Unrounded) | Notional Amount | ||||||||||
Broadcom Corp., Class A, | ||||||||||||
Call $270.00, Expires 11–17–17, OTC (Ctrpty: UBS AG) | 2,847 | 285 | 448 | |||||||||
|
| |||||||||||
TOTAL PURCHASED OPTIONS – 0.0% |
| $ | 448 | |||||||||
(Cost: $1,014) |
|
CORPORATE DEBT SECURITIES | Principal | |||||||
Financials |
| |||||||
Diversified Banks – 0.6% |
| |||||||
Royal Bank of Scotland Group plc (The): | ||||||||
7.500%, 12–29–49 | $ | 14,766 | 15,464 | |||||
8.625%, 12–29–49 | 6,547 | 7,259 | ||||||
|
| |||||||
22,723 | ||||||||
|
| |||||||
Total Financials – 0.6% | 22,723 |
Principal | Value | |||||||
TOTAL CORPORATE DEBT |
| $ | 22,723 | |||||
(Cost: $20,689) | ||||||||
OTHER GOVERNMENT SECURITIES (H) | ||||||||
Brazil – 1.6% | ||||||||
Brazil Notas do Tesouro | BRL178,259 | 58,363 | ||||||
|
| |||||||
Mexico – 2.9% | ||||||||
Mexican Bonos: | ||||||||
10.000%, 12–5–24 (I) | MXN824,607 | 53,618 | ||||||
5.750%, 3–5–26 (I) | 1,033,419 | 52,915 | ||||||
|
| |||||||
106,533 | ||||||||
|
| |||||||
TOTAL OTHER GOVERNMENT |
| $ | 164,896 | |||||
(Cost: $163,555) | ||||||||
UNITED STATES GOVERNMENT OBLIGATIONS | ||||||||
Treasury Inflation Protected Obligations – 4.1% |
| |||||||
U.S. Treasury Notes: | ||||||||
0.125%, 4–15–21 | $ | 27,620 | 27,693 | |||||
0.625%, 1–15–26 | 67,091 | 67,956 | ||||||
0.125%, 7–15–26 | 5,138 | 4,993 | ||||||
1.000%, 2–15–46 | 47,051 | 47,671 | ||||||
|
| |||||||
148,313 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 4.1% |
| $ | 148,313 | |||||
(Cost: $151,403) | ||||||||
BULLION – 5.7% | Troy Ounces | |||||||
Gold | 161 | 206,411 | ||||||
|
| |||||||
(Cost: $191,012) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (J) – 6.0% |
| |||||||
Army & Air Force Exchange Service, | ||||||||
1.130%, 10–2–17 | $ | 6,200 | 6,199 | |||||
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.), | ||||||||
1.180%, 10–5–17 | 5,000 | 4,999 | ||||||
E.I. du Pont de Nemours | ||||||||
1.300%, 10–6–17 | 1,125 | 1,125 | ||||||
1.460%, 10–18–17 | 30,039 | 30,017 | ||||||
Emerson Electric Co., | ||||||||
1.190%, 10–2–17 | 10,000 | 9,999 | ||||||
Essilor International S.A., | ||||||||
1.270%, 10–16–17 | 10,000 | 9,994 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (J) (Continued) |
| |||||||
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), | ||||||||
1.331%, 10–3–17 | $ | 15,000 | $ | 14,998 | ||||
International Paper Co., | ||||||||
1.500%, 10–11–17 | 10,000 | 9,995 | ||||||
J.M. Smucker Co. (The), | ||||||||
1.371%, 10–6–17 | 22,000 | 21,994 | ||||||
Kellogg Co., | ||||||||
1.490%, 10–12–17 | 13,500 | 13,493 | ||||||
L Oreal USA, Inc., | ||||||||
1.170%, 10–2–17 | 25,000 | 24,998 | ||||||
Medtronic Global Holdings SCA: | ||||||||
1.252%, 10–3–17 | 2,215 | 2,215 | ||||||
1.530%, 10–16–17 | 10,000 | 9,993 | ||||||
Mondelez International, Inc., | ||||||||
1.341%, 10–5–17 | 6,000 | 5,999 | ||||||
Rockwell Automation, Inc.: | ||||||||
1.240%, 10–3–17 | 10,000 | 9,998 | ||||||
1.200%, 10–6–17 | 5,000 | 4,999 | ||||||
Sysco Corp., | ||||||||
1.350%, 10–2–17 | 8,167 | 8,166 | ||||||
Walgreens Boots Alliance, Inc.: | ||||||||
1.360%, 10–5–17 | 10,000 | 9,998 | ||||||
1.500%, 10–11–17 | 20,000 | 19,991 | ||||||
|
| |||||||
219,170 | ||||||||
|
| |||||||
Master Note – 0.1% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (K) | 1,887 | 1,887 | ||||||
|
| |||||||
Municipal Obligations – 1.8% | ||||||||
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by FNMA) (BVAL plus 10 bps), | ||||||||
0.990%, 10–7–17 (K) | 12,875 | 12,875 | ||||||
LA Pub Fac Auth, Var Rate Rev Rfdg Bonds (CHRISTUS Hlth), Ser 2009B-1 (GTD by Bank of New York Mellon (The)) (BVAL plus 25 bps), | ||||||||
0.930%, 10–7–17 (K) | 4,000 | 4,000 | ||||||
NY Metro Trans Auth, Trans Rev Var Rate Bonds, Ser 2005E-3 (GTD by Bank of Montreal) (BVAL plus 21 bps), | ||||||||
0.950%, 10–7–17 (K) | 12,000 | 12,000 | ||||||
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.) (BVAL plus 20 bps), | ||||||||
1.250%, 10–7–17 (K) | 12,700 | 12,700 | ||||||
NYC Hsng Dev Corp., Multi-Fam Mtg Rev Bonds (Spring Creek Apt I and II), Ser 2006A (GTD by FHLMC) (BVAL plus 14 bps), | ||||||||
0.990%, 10–7–17 (K) | 14,000 | 14,000 |
2017 | SEMIANNUAL REPORT | 11 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Municipal Obligations (Continued) |
| |||||||
SD Hlth and Edu Fac Auth, Var Rate Dmnd Rev Bonds (Sioux Vly Hosp and Hlth Sys), Ser 2001C (GTD by U.S. Bank N.A.) (BVAL plus 9 bps), | ||||||||
0.950%, 10–7–17 (K) | $ | 2,800 | $ | 2,800 | ||||
Trap Rock Industries, Inc., Var Demand Bonds, Ser 2005 (GTD by Wachovia Bank N.A.) (1-Week U.S. LIBOR plus 10 bps), | ||||||||
1.230%, 10–7–17 (K) | 8,365 | 8,365 | ||||||
|
| |||||||
66,740 | ||||||||
|
| |||||||
United States Government Agency Obligations – 0.7% |
| |||||||
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate): | ||||||||
1.120%, 10–7–17 (K) | 7,900 | 7,900 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
United States Government Agency Obligations (Continued) |
| |||||||
1.130%, 10–7–17 (K) | $ | 18,433 | $ | 18,433 | ||||
|
| |||||||
26,333 | ||||||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 314,130 | |||||
(Cost: $314,149) | ||||||||
TOTAL INVESTMENT |
| $ | 3,653,591 | |||||
(Cost: $3,615,324) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1% |
| 4,255 | ||||||
NET ASSETS – 100.0% |
| $ | 3,657,846 |
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, 2017, the Fund owned the following restricted securities: |
Security | Acquisition Date(s) | Shares | Cost | Market Value | ||||||||||||||||
Liberty Media Corp., Class C | 1–23–17 | 1,058 | $ | 27,499 | $ | 39,814 | ||||||||||||||
Media Group Holdings LLC, Series H | 8–29–13 to 10–31–13 | 640 | 448,211 | 3,000 | ||||||||||||||||
Media Group Holdings LLC, Series T | 7–2–13 to 1–23–15 | 80 | 168,531 | 15,140 | ||||||||||||||||
|
| |||||||||||||||||||
$ | 644,241 | $ | 57,954 | |||||||||||||||||
|
|
The | total value of these securities represented 1.6% of net assets at September 30, 2017. |
(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) | Securities whose value was determined using significant unobservable inputs. |
(G) | All or a portion of securities with an aggregate value of $75,821 are held in collateralized accounts to cover potential obligations with respect to outstanding written options. |
(H) | Other Government Securities may include emerging markets sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities. |
(I) | Principal amount and exercise prices are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real, EUR - Euro and MXN - Mexican Peso). |
(J) | Rate shown is the yield to maturity at September 30, 2017. |
12 | SEMIANNUAL REPORT | 2017 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
(K) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following total return swap agreements were outstanding at September 30, 2017:
Underlying Security | Counterparty | Maturity Date | Notional Amount(I) | Financing Fee(1)(2) | Value | Upfront Payments/ (Receipts) | Unrealized Appreciation | |||||||||||||||||||||
Euro STOXX Bank Index | Morgan Stanley & Co. International plc | 12/08/2017 | EUR77,562 | 3-Month Euribor plus 40 bps | $ | 5,361 | $ | — | $ | 5,361 | ||||||||||||||||||
|
|
(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 written options were outstanding at September 30, 2017 (contracts and exercise prices unrounded):
Underlying Security | Counterparty, if OTC | Type | Number of Contracts | Notional Amount | Expiration Month | Exercise Price | Premium Received | Value | ||||||||||||||||||||||
Broadcom Corp., Class A | UBS AG | Put | 2,257 | 225 | November 2017 | $ | 230.00 | $ | 1,067 | $ | (982 | ) | ||||||||||||||||||
UBS AG | Call | 2,847 | 285 | November 2017 | 300.00 | 128 | (57 | ) | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
$ | 1,195 | $ | (1,039 | ) | ||||||||||||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 334,487 | $ | 39,813 | $ | 18,140 | ||||||
Consumer Staples | 301,325 | — | — | |||||||||
Energy | 315,539 | — | — | |||||||||
Financials | 511,505 | — | — | |||||||||
Health Care | 185,555 | — | — | |||||||||
Industrials | 431,926 | — | — | |||||||||
Information Technology | 562,168 | — | — | |||||||||
Materials | 59,127 | — | — | |||||||||
Telecommunication Services | 37,085 | — | — | |||||||||
Total Common Stocks | $ | 2,738,717 | $ | 39,813 | $ | 18,140 | ||||||
Purchased Options | — | 448 | — | |||||||||
Corporate Debt Securities | — | 22,723 | — | |||||||||
Other Government Securities | — | 164,896 | — | |||||||||
United States Government Obligations | — | 148,313 | — | |||||||||
Bullion | 206,411 | — | — | |||||||||
Short-Term Securities | — | 314,130 | — | |||||||||
Total | $ | 2,945,128 | $ | 690,323 | $ | 18,140 | ||||||
Total Return Swaps | $ | — | $ | 5,361 | $ | — | ||||||
Liabilities | ||||||||||||
Written Options | $ | — | $ | 1,039 | $ | — |
During the period ended September 30, 2017, there were $240,767 transferred between Levels 3 and 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.
2017 | SEMIANNUAL REPORT | 13 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
BVAL = Bloomberg Valuation Municipal AAA Benchmark
FHLMC = Federal Home Loan Mortgage Association
FNMA = Federal National Mortgage Association
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
OTC = Over the Counter
TB = Treasury Bill
Country Diversification
(as a % of net assets) |
| |||
United States | 52.8% | |||
France | 4.9% | |||
Japan | 4.2% | |||
United Kingdom | 3.8% | |||
Germany | 3.4% | |||
Mexico | 2.9% | |||
Brazil | 2.8% | |||
China | 2.5% | |||
India | 2.3% | |||
Hong Kong | 2.1% | |||
Switzerland | 1.8% | |||
Netherlands | 1.2% | |||
Other Countries | 0.9% | |||
Other+ | 14.4% |
+ | Includes gold bullion, options, cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
14 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY BALANCED FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
|
Stocks | 68.4% | |||
Information Technology | 13.1% | |||
Financials | 12.7% | |||
Health Care | 12.1% | |||
Consumer Discretionary | 10.6% | |||
Industrials | 7.9% | |||
Energy | 5.6% | |||
Materials | 3.5% | |||
Consumer Staples | 2.4% | |||
Real Estate | 0.4% | |||
Telecommunication Services | 0.1% | |||
Bonds | 28.6% | |||
Corporate Debt Securities | 22.8% | |||
United States Government and Government Agency Obligations | 5.5% | |||
Loans | 0.3% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 3.0% |
Lipper Rankings
|
Category: Mixed-Asset Target Allocation Growth Funds | Rank | Percentile | ||||
1 Year | 485/503 | 97 | ||||
3 Year | 418/450 | 93 | ||||
5 Year | 358/420 | 86 | ||||
10 Year | 60/313 | 20 | ||||
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary. |
|
Top 10 Equity Holdings |
Company | Sector | Industry | ||
Apple, Inc. | Information Technology | Technology Hardware, Storage & Peripherals | ||
JPMorgan Chase & Co. | Financials | Other Diversified Financial Services | ||
Carnival Corp. | Consumer Discretionary | Hotels, Resorts & Cruise Lines | ||
Autodesk, Inc. | Information Technology | Application Software | ||
Microsoft Corp. | Information Technology | Systems Software | ||
PNC Financial Services Group, Inc. (The) | Financials | Regional Banks | ||
Union Pacific Corp. | Industrials | Railroads | ||
Intercontinental Exchange, Inc. | Financials | Financial Exchanges & Data | ||
Las Vegas Sands, Inc. | Consumer Discretionary | Casinos & Gaming | ||
PPG Industries, Inc. | Materials | Specialty 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. |
2017 | SEMIANNUAL REPORT | 15 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Automotive Retail – 0.5% |
| |||||||
O’Reilly Automotive, Inc. (A) | 42 | $ | 9,078 | |||||
|
| |||||||
Cable & Satellite – 1.3% |
| |||||||
Comcast Corp., Class A | 652 | 25,085 | ||||||
|
| |||||||
Casinos & Gaming – 1.7% |
| |||||||
Las Vegas Sands, Inc. | 514 | 32,959 | ||||||
|
| |||||||
General Merchandise Stores – 0.7% |
| |||||||
Dollar General Corp. | 163 | 13,207 | ||||||
|
| |||||||
Home Improvement Retail – 1.5% |
| |||||||
Lowe’s Co., Inc. | 363 | 29,040 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 2.4% |
| |||||||
Carnival Corp. | 715 | 46,142 | ||||||
|
| |||||||
Movies & Entertainment – 1.4% |
| |||||||
Twenty-First Century Fox, Inc. | 1,053 | 27,163 | ||||||
|
| |||||||
Restaurants – 1.1% |
| |||||||
YUM! Brands, Inc. | 299 | 22,020 | ||||||
|
| |||||||
Total Consumer Discretionary – 10.6% |
| 204,694 | ||||||
Consumer Staples |
| |||||||
Brewers – 1.1% |
| |||||||
Anheuser-Busch InBev S.A. ADR | 176 | 21,033 | ||||||
|
| |||||||
Drug Retail – 0.4% |
| |||||||
CVS Caremark Corp. | 103 | 8,396 | ||||||
|
| |||||||
Packaged Foods & Meats – 0.9% |
| |||||||
Kraft Foods Group, Inc. | 232 | 17,969 | ||||||
|
| |||||||
Total Consumer Staples – 2.4% |
| 47,398 | ||||||
Energy |
| |||||||
Integrated Oil & Gas – 1.5% |
| |||||||
Chevron Corp. | 242 | 28,465 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 1.2% |
| |||||||
Schlumberger Ltd. | 337 | 23,530 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 1.5% |
| |||||||
Newfield Exploration Co. (A) | 452 | 13,414 | ||||||
Noble Energy, Inc. | 563 | 15,974 | ||||||
|
| |||||||
29,388 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 0.4% |
| |||||||
Phillips 66 | 91 | 8,309 | ||||||
|
| |||||||
Total Energy – 4.6% |
| 89,692 | ||||||
Financials |
| |||||||
Diversified Banks – 2.3% |
| |||||||
Northern Trust Corp. | 249 | 22,909 | ||||||
Wells Fargo & Co. | 391 | 21,558 | ||||||
|
| |||||||
44,467 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Financial Exchanges & Data – 1.8% |
| |||||||
Intercontinental Exchange, Inc. | 508 | $ | 34,917 | |||||
|
| |||||||
Investment Banking & Brokerage – 1.5% |
| |||||||
Goldman Sachs Group, Inc. (The) | 127 | 30,088 | ||||||
|
| |||||||
Life & Health Insurance – 1.5% |
| |||||||
MetLife, Inc. | 515 | 26,734 | ||||||
MetLife, Inc. (A) | 47 | 2,844 | ||||||
|
| |||||||
29,578 | ||||||||
|
| |||||||
Other Diversified Financial Services – 2.6% |
| |||||||
JPMorgan Chase & Co. | 525 | 50,138 | ||||||
|
| |||||||
Regional Banks – 1.9% |
| |||||||
PNC Financial Services Group, Inc. (The) | 273 | 36,758 | ||||||
|
| |||||||
Total Financials – 11.6% |
| 225,946 | ||||||
Health Care |
| |||||||
Biotechnology – 2.6% |
| |||||||
Biogen, Inc. (A) | 84 | 26,208 | ||||||
BioMarin Pharmaceutical, Inc. (A) | 129 | 12,006 | ||||||
Shire Pharmaceuticals Group plc ADR | 79 | 12,081 | ||||||
|
| |||||||
50,295 | ||||||||
|
| |||||||
Health Care Services – 1.4% |
| |||||||
Laboratory Corp. of America Holdings (A) | 185 | 27,997 | ||||||
|
| |||||||
Managed Health Care – 2.1% |
| |||||||
Anthem, Inc. | 60 | 11,298 | ||||||
UnitedHealth Group, Inc. | 155 | 30,327 | ||||||
|
| |||||||
41,625 | ||||||||
|
| |||||||
Pharmaceuticals – 3.0% |
| |||||||
Allergan plc | 115 | 23,651 | ||||||
Pfizer, Inc. | 756 | 26,993 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 408 | 7,185 | ||||||
|
| |||||||
57,829 | ||||||||
|
| |||||||
Total Health Care – 9.1% |
| 177,746 | ||||||
Industrials |
| |||||||
Aerospace & Defense – 0.9% |
| |||||||
United Technologies Corp. | 150 | 17,429 | ||||||
|
| |||||||
Building Products – 1.0% |
| |||||||
Johnson Controls, Inc. | 467 | 18,796 | ||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 1.4% |
| |||||||
Allison Transmission Holdings, Inc. | 265 | 9,955 | ||||||
PACCAR, Inc. | 237 | 17,130 | ||||||
|
| |||||||
27,085 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Industrial Machinery – 0.9% |
| |||||||
Parker Hannifin Corp. | 104 | $ | 18,237 | |||||
|
| |||||||
Railroads – 1.8% |
| |||||||
Union Pacific Corp. | 306 | 35,516 | ||||||
|
| |||||||
Trucking – 1.2% |
| |||||||
Knight Transportation, Inc. (A) | 563 | 23,391 | ||||||
|
| |||||||
Total Industrials – 7.2% |
| 140,454 | ||||||
Information Technology |
| |||||||
Application Software – 2.3% |
| |||||||
Autodesk, Inc. (A) | 411 | 46,111 | ||||||
|
| |||||||
Data Processing & Outsourced Services – 1.3% |
| |||||||
MasterCard, Inc., Class A | 175 | 24,675 | ||||||
|
| |||||||
IT Consulting & Other Services – 1.5% |
| |||||||
Cognizant Technology Solutions Corp., Class A | 393 | 28,504 | ||||||
|
| |||||||
Semiconductor Equipment – 0.9% |
| |||||||
Applied Materials, Inc. | 328 | 17,093 | ||||||
|
| |||||||
Semiconductors – 2.4% |
| |||||||
Integrated Device Technology, | 442 | 11,744 | ||||||
Intel Corp. | 782 | 29,794 | ||||||
QUALCOMM, Inc. | 113 | 5,881 | ||||||
|
| |||||||
47,419 | ||||||||
|
| |||||||
Systems Software – 2.0% |
| |||||||
Microsoft Corp. | 517 | 38,519 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 2.7% |
| |||||||
Apple, Inc. | 345 | 53,107 | ||||||
|
| |||||||
Total Information Technology – 13.1% |
| 255,428 | ||||||
Materials |
| |||||||
Commodity Chemicals – 1.1% |
| |||||||
Valvoline, Inc. | 869 | 20,368 | ||||||
|
| |||||||
Specialty Chemicals – 1.6% |
| |||||||
PPG Industries, Inc. | 293 | 31,794 | ||||||
|
| |||||||
Total Materials – 2.7% |
| 52,162 | ||||||
Real Estate |
| |||||||
Specialized REITs – 0.4% |
| |||||||
Crown Castle International Corp. | 74 | 7,368 | ||||||
|
| |||||||
Total Real Estate – 0.4% |
| 7,368 | ||||||
TOTAL COMMON STOCKS – 61.7% |
| $ | 1,200,888 | |||||
(Cost: $951,815) |
16 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
PREFERRED STOCKS | Shares | Value | ||||||
Energy |
| |||||||
Integrated Oil & Gas – 1.0% |
| |||||||
Hess Corp., Convertible, 8.000% | 320 | $ | 18,867 | |||||
|
| |||||||
Total Energy – 1.7% |
| 18,867 | ||||||
Financials |
| |||||||
Investment Banking & Brokerage – 0.4% |
| |||||||
Morgan Stanley, 5.850% | 300 | 8,202 | ||||||
|
| |||||||
Other Diversified Financial Services – 0.5% |
| |||||||
Citigroup, Inc., 6.300% | 357 | 9,703 | ||||||
|
| |||||||
Regional Banks – 0.2% |
| |||||||
First Republic Bank, Series G, 5.500% | 120 | 3,136 | ||||||
|
| |||||||
Total Financials – 1.1% |
| 21,041 | ||||||
Health Care |
| |||||||
Managed Health Care – 0.9% |
| |||||||
Anthem, Inc., 5.250% | 342 | 17,883 | ||||||
|
| |||||||
Pharmaceuticals – 2.1% |
| |||||||
Allergan plc, Convertible Series A, 5.500% | 36 | 26,267 | ||||||
Teva Pharmaceutical Industries Ltd., Convertible, 7.000% | 41 | 14,130 | ||||||
|
| |||||||
40,397 | ||||||||
|
| |||||||
Total Health Care – 3.0% |
| 58,280 | ||||||
Industrials |
| |||||||
Environmental & Facilities Services – 0.7% |
| |||||||
Stericycle, Inc., 5.250% | 225 | 13,239 | ||||||
|
| |||||||
Total Industrials – 0.7% |
| 13,239 | ||||||
Materials |
| |||||||
Commodity Chemicals – 0.8% |
| |||||||
A. Schulman, Inc., Convertible, 6.000% | 19 | 16,464 | ||||||
|
| |||||||
Total Materials – 0.8% |
| 16,464 | ||||||
Telecommunication Services |
| |||||||
Integrated Telecommunication Services – 0.1% |
| |||||||
Frontier Communications Corp., Convertible Series A, 11.125% | 125 | 2,405 | ||||||
|
| |||||||
Total Telecommunication Services – 0.1% |
| 2,405 | ||||||
TOTAL PREFERRED STOCKS – 6.7% |
| $ | 130,296 | |||||
(Cost: $170,574) |
|
CORPORATE DEBT SECURITIES | Principal | Value | ||||||
Consumer Discretionary |
| |||||||
Apparel, Accessories & Luxury Goods – 0.5% |
| |||||||
Under Armour, Inc., | ||||||||
3.250%, 6–15–26 | $ | 9,500 | $ | 8,829 | ||||
|
| |||||||
Auto Parts & Equipment – 0.2% |
| |||||||
Lear Corp., | ||||||||
3.800%, 9–15–27 | 3,250 | 3,236 | ||||||
|
| |||||||
Automobile Manufacturers – 0.1% |
| |||||||
General Motors Co., | ||||||||
4.200%, 10–1–27 | 1,250 | 1,268 | ||||||
|
| |||||||
Broadcasting – 0.2% |
| |||||||
Discovery Communications LLC: | ||||||||
3.300%, 5–15–22 | 900 | 907 | ||||||
2.950%, 3–20–23 | 1,000 | 1,001 | ||||||
3.950%, 3–20–28 | 2,750 | 2,742 | ||||||
|
| |||||||
4,650 | ||||||||
|
| |||||||
General Merchandise Stores – 0.0% |
| |||||||
Dollar General Corp., | ||||||||
1.875%, 4–15–18 | 1,000 | 1,001 | ||||||
|
| |||||||
Homebuilding – 0.1% |
| |||||||
Toll Brothers Finance Corp., | ||||||||
4.375%, 4–15–23 | 1,500 | 1,568 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 0.1% |
| |||||||
Wyndham Worldwide Corp.: | ||||||||
4.150%, 4–1–24 | 1,000 | 1,014 | ||||||
4.500%, 4–1–27 | 2,000 | 2,006 | ||||||
|
| |||||||
3,020 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail – 0.2% |
| |||||||
Amazon.com, Inc., | ||||||||
2.800%, 8–22–24 (B) | 3,000 | 3,005 | ||||||
|
| |||||||
Publishing – 0.1% |
| |||||||
Thomson Reuters Corp., | ||||||||
3.350%, 5–15–26 | 2,000 | 1,991 | ||||||
|
| |||||||
Total Consumer Discretionary – 1.5% |
| 28,568 | ||||||
Consumer Staples |
| |||||||
Brewers – 0.1% |
| |||||||
Molson Coors Brewing Co., | ||||||||
3.000%, 7–15–26 | 1,500 | 1,458 | ||||||
|
| |||||||
Distillers & Vintners – 0.0% |
| |||||||
Beam, Inc., | ||||||||
1.750%, 6–15–18 | 1,000 | 999 | ||||||
|
| |||||||
Household Products – 0.1% |
| |||||||
Clorox Co. (The), | ||||||||
3.100%, 10–1–27 | 1,500 | 1,492 | ||||||
|
| |||||||
Tobacco – 0.2% |
| |||||||
BAT International Finance plc, 2.750%, 6–15–20 (B) | 4,000 | 4,064 | ||||||
|
| |||||||
Total Consumer Staples – 0.4% |
| 8,013 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Energy |
| |||||||
Integrated Oil & Gas – 0.4% |
| |||||||
Hess Corp., | ||||||||
4.300%, 4–1–27 | $ | 7,500 | $ | 7,462 | ||||
|
| |||||||
Oil & Gas Drilling – 0.7% |
| |||||||
Nabors Industries Ltd., Convertible, | ||||||||
0.750%, 1–15–24 (B) | 16,500 | 13,417 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 0.2% |
| |||||||
Schlumberger Holding Corp., | ||||||||
2.350%, 12–21–18 (B) | 4,500 | 4,525 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 0.9% |
| |||||||
BP Capital Markets plc (GTD by BP plc): | ||||||||
2.241%, 9–26–18 | 4,250 | 4,275 | ||||||
2.315%, 2–13–20 | 3,000 | 3,026 | ||||||
Concho Resources, Inc., | ||||||||
4.375%, 1–15–25 | 6,500 | 6,841 | ||||||
ONEOK Partners L.P., | ||||||||
3.200%, 9–15–18 | 2,750 | 2,783 | ||||||
|
| |||||||
16,925 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 1.4% |
| |||||||
Colorado Interstate Gas Co., | ||||||||
4.150%, 8–15–26 (B) | 5,000 | 4,970 | ||||||
Hornbeck Offshore Services, Inc., Convertible, | ||||||||
1.500%, 9–1–19 | 11,621 | 9,064 | ||||||
Kinder Morgan, Inc., | ||||||||
3.150%, 1–15–23 | 2,000 | 2,009 | ||||||
Plains All American Pipeline L.P. and PAA Finance Corp., | ||||||||
4.650%, 10–15–25 | 3,500 | 3,603 | ||||||
Sunoco Logistics Partners Operations L.P. (GTD by Energy Transfer Partners L.P.), | ||||||||
4.000%, 10–1–27 | 1,000 | 996 | ||||||
Williams Partners L.P., | ||||||||
3.600%, 3–15–22 | 5,500 | 5,681 | ||||||
|
| |||||||
26,323 | ||||||||
|
| |||||||
Total Energy – 3.6% |
| 68,652 | ||||||
Financials |
| |||||||
Asset Management & Custody Banks – 0.3% |
| |||||||
Ares Capital Corp., | ||||||||
4.875%, 11–30–18 | 6,500 | 6,684 | ||||||
|
| |||||||
Consumer Finance – 0.7% |
| |||||||
Capital One Bank USA N.A.: | ||||||||
2.150%, 11–21–18 | 3,150 | 3,158 | ||||||
2.250%, 2–13–19 | 4,000 | 4,011 | ||||||
Ford Motor Credit Co. LLC: | ||||||||
3.339%, 3–28–22 | 2,500 | 2,540 | ||||||
2.979%, 8–3–22 | 1,000 | 999 | ||||||
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.): | ||||||||
3.450%, 4–10–22 | 1,000 | 1,016 | ||||||
3.700%, 5–9–23 | 1,050 | 1,070 |
2017 | SEMIANNUAL REPORT | 17 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Consumer Finance (Continued) |
| |||||||
Hyundai Capital America, | ||||||||
2.875%, 8–9–18 (B) | $ | 1,550 | $ | 1,558 | ||||
|
| |||||||
14,352 | ||||||||
|
| |||||||
Diversified Banks – 4.5% |
| |||||||
Australia and New Zealand Banking Group Ltd., | ||||||||
4.400%, 5–19–26 (B) | 7,150 | 7,437 | ||||||
Bank of America Corp.: | ||||||||
2.000%, 1–11–18 | 2,500 | 2,503 | ||||||
4.000%, 1–22–25 | 750 | 776 | ||||||
8.000%, 7–29–49 | 10,000 | 10,143 | ||||||
Barclays plc, | ||||||||
5.200%, 5–12–26 | 5,000 | 5,338 | ||||||
BNP Paribas S.A., | ||||||||
2.450%, 3–17–19 | 4,500 | 4,539 | ||||||
DBS Group Holdings Ltd., | ||||||||
2.246%, 7–16–19 (B) | 5,000 | 5,009 | ||||||
HSBC Holdings plc, | ||||||||
3.400%, 3–8–21 | 5,000 | 5,155 | ||||||
ING Bank N.V., | ||||||||
2.500%, 10–1–19 (B) | 1,300 | 1,311 | ||||||
Mizuho Bank Ltd., | ||||||||
2.650%, 9–25–19 (B) | 5,200 | 5,248 | ||||||
Skandinaviska Enskilda Banken AB, | ||||||||
2.375%, 3–25–19 (B) | 4,000 | 4,029 | ||||||
Societe Generale S.A., | ||||||||
4.250%, 4–14–25 (B) | 2,750 | 2,818 | ||||||
Standard Chartered plc, | ||||||||
2.250%, 4–17–20 (B) | 10,700 | 10,676 | ||||||
Sumitomo Mitsui Banking Corp., | ||||||||
2.450%, 1–16–20 | 4,000 | 4,031 | ||||||
U.S. Bancorp, | ||||||||
3.100%, 4–27–26 | 2,500 | 2,487 | ||||||
Wells Fargo & Co., | ||||||||
7.980%, 3–29–49 | 10,000 | 10,300 | ||||||
Westpac Banking Corp., | ||||||||
2.250%, 7–30–18 | 5,000 | 5,024 | ||||||
|
| |||||||
86,824 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 1.1% |
| |||||||
BGC Partners, Inc., |
| |||||||
5.375%, 12–9–19 | 2,500 | 2,631 | ||||||
Credit Suisse Group Funding (Guernsey) Ltd., | ||||||||
2.750%, 3–26–20 | 4,000 | 4,041 | ||||||
Goldman Sachs Group, Inc. (The): | ||||||||
2.905%, 7–24–23 | 3,000 | 3,001 | ||||||
3.272%, 9–29–25 | 4,000 | 4,002 | ||||||
5.700%, 12–29–49 | 1,300 | 1,344 | ||||||
Morgan Stanley, | ||||||||
3.591%, 7–22–28 | 5,000 | 5,007 | ||||||
|
| |||||||
20,026 | ||||||||
|
| |||||||
Life & Health Insurance – 0.5% |
| |||||||
AIA Group Ltd., | ||||||||
2.250%, 3–11–19 (B) | 2,600 | 2,596 | ||||||
Northwestern Mutual Life Insurance Co. (The), | ||||||||
3.850%, 9–30–47 (B) | 2,000 | 1,976 | ||||||
Prudential Financial, Inc., | ||||||||
8.875%, 6–15–38 | 1,600 | 1,676 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Life & Health Insurance (Continued) |
| |||||||
Sumitomo Life Insurance Co., | ||||||||
4.000%, 9–14–77 (B) | $ | 3,000 | $ | 2,945 | ||||
|
| |||||||
9,193 | ||||||||
|
| |||||||
Multi-Line Insurance – 0.5% |
| |||||||
American International Group, Inc., | ||||||||
2.300%, 7–16–19 | 2,750 | 2,763 | ||||||
Aon plc (GTD by Aon Corp.), | ||||||||
2.800%, 3–15–21 | 6,000 | 6,024 | ||||||
|
| |||||||
8,787 | ||||||||
|
| |||||||
Other Diversified Financial Services – 2.1% |
| |||||||
Citigroup, Inc.: | ||||||||
5.800%, 11–29–49 | 8,500 | 8,776 | ||||||
5.950%, 12–29–49 | 9,250 | 9,947 | ||||||
Fidelity National Information Services, Inc., | ||||||||
2.000%, 4–15–18 | 1,250 | 1,252 | ||||||
JPMorgan Chase & Co.: | ||||||||
7.900%, 4–29–49 | 8,200 | 8,446 | ||||||
5.000%, 12–29–49 | 4,500 | 4,576 | ||||||
5.300%, 11–1–65 | 1,500 | 1,564 | ||||||
PennantPark Investment Corp., | ||||||||
4.500%, 10–1–19 | 5,000 | 5,059 | ||||||
Total Capital (GTD by Total S.A.), | ||||||||
2.125%, 8–10–18 | 1,500 | 1,507 | ||||||
|
| |||||||
41,127 | ||||||||
|
| |||||||
Property & Casualty Insurance – 0.1% |
| |||||||
Berkshire Hathaway Finance Corp. (GTD by Berkshire Hathaway, Inc.), | ||||||||
2.200%, 3–15–21 | 2,300 | 2,315 | ||||||
|
| |||||||
Regional Banks – 1.1% |
| |||||||
Citizens Financial Group, Inc., | ||||||||
3.750%, 7–1–24 | 8,900 | 8,903 | ||||||
PNC Bank N.A., | ||||||||
3.250%, 6–1–25 | 4,000 | 4,082 | ||||||
SunTrust Banks, Inc.: | ||||||||
2.350%, 11–1–18 | 3,700 | 3,719 | ||||||
5.625%, 12–29–49 | 4,800 | 5,016 | ||||||
|
| |||||||
21,720 | ||||||||
|
| |||||||
Specialized Finance – 0.3% |
| |||||||
Diamond 1 Finance Corp. and Diamond 2 Finance Corp., | ||||||||
5.450%, 6–15–23 (B) | 6,000 | 6,581 | ||||||
|
| |||||||
Total Financials – 11.2% |
| 217,609 | ||||||
Health Care |
| |||||||
Biotechnology – 0.3% |
| |||||||
Amgen, Inc., | ||||||||
2.125%, 5–1–20 | 6,000 | 6,011 | ||||||
|
| |||||||
Health Care Equipment – 0.2% |
| |||||||
Zimmer Holdings, Inc., | ||||||||
2.700%, 4–1–20 | 3,000 | 3,030 | ||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Health Care Services – 0.5% |
| |||||||
Cardinal Health, Inc., | ||||||||
2.400%, 11–15–19 | $ | 3,900 | $ | 3,930 | ||||
Quest Diagnostics, Inc., | ||||||||
3.450%, 6–1–26 | 5,000 | 5,043 | ||||||
|
| |||||||
8,973 | ||||||||
|
| |||||||
Health Care Supplies – 0.2% |
| |||||||
Shire Acquisitions Investments Ireland Designated Activity Co., | ||||||||
2.875%, 9–23–23 | 5,000 | 4,974 | ||||||
|
| |||||||
Pharmaceuticals – 0.5% |
| |||||||
AbbVie, Inc., | ||||||||
3.200%, 5–14–26 | 3,500 | 3,506 | ||||||
Forest Laboratories, Inc., | ||||||||
5.000%, 12–15–21 (B) | 4,500 | 4,917 | ||||||
Mylan, Inc., | ||||||||
2.550%, 3–28–19 | 700 | 703 | ||||||
|
| |||||||
9,126 | ||||||||
|
| |||||||
Total Health Care – 1.7% |
| 32,114 | ||||||
Industrials |
| |||||||
Aerospace & Defense – 0.5% |
| |||||||
Huntington Ingalls Industries, Inc., | ||||||||
5.000%, 11–15–25 (B) | 4,000 | 4,320 | ||||||
TransDigm, Inc. (GTD by TransDigm Group, Inc.), | ||||||||
6.375%, 6–15–26 | 5,500 | 5,634 | ||||||
|
| |||||||
9,954 | ||||||||
|
| |||||||
Airlines – 0.1% |
| |||||||
Southwest Airlines Co., | ||||||||
2.650%, 11–5–20 | 2,900 | 2,938 | ||||||
|
| |||||||
Diversified Support Services – 0.0% |
| |||||||
Ahern Rentals, Inc., | ||||||||
7.375%, 5–15–23 (B) | 1,118 | 1,023 | ||||||
|
| |||||||
Industrial Conglomerates – 0.1% |
| |||||||
3M Co., | ||||||||
2.875%, 10–15–27 | 1,500 | 1,492 | ||||||
|
| |||||||
Railroads – 0.1% |
| |||||||
Kansas City Southern de Mexico S.A. de C.V., | ||||||||
2.350%, 5–15–20 | 873 | 870 | ||||||
|
| |||||||
Total Industrials – 0.8% |
| 16,277 | ||||||
Information Technology |
| |||||||
Data Processing & Outsourced Services – 0.1% |
| |||||||
Fiserv, Inc., | ||||||||
2.700%, 6–1–20 | 2,900 | 2,933 | ||||||
|
| |||||||
IT Consulting & Other Services – 0.1% |
| |||||||
Keysight Technologies, Inc., | ||||||||
4.600%, 4–6–27 | 2,500 | 2,629 | ||||||
|
|
18 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Semiconductors – 0.1% |
| |||||||
Micron Technology, Inc., | ||||||||
5.500%, 2–1–25 | $ | 2,122 | $ | 2,263 | ||||
|
| |||||||
Total Information Technology – 0.3% |
| 7,825 | ||||||
Materials |
| |||||||
Construction Materials – 0.2% |
| |||||||
Hillman Group, Inc. (The), | ||||||||
6.375%, 7–15–22 (B) | 5,000 | 4,975 | ||||||
|
| |||||||
Diversified Metals & Mining – 0.1% |
| |||||||
Anglo American plc, | ||||||||
4.125%, 4–15–21 (B) | 2,200 | 2,287 | ||||||
|
| |||||||
Metal & Glass Containers – 0.4% |
| |||||||
BakerCorp International, Inc., | ||||||||
8.250%, 6–1–19 | 7,747 | 7,205 | ||||||
|
| |||||||
Paper Packaging – 0.2% |
| |||||||
WestRock Co., | ||||||||
3.000%, 9–15–24 (B) | 3,500 | 3,494 | ||||||
|
| |||||||
Total Materials – 0.9% | 17,961 | |||||||
Real Estate |
| |||||||
Specialized REITs – 0.3% |
| |||||||
Crown Castle International Corp.: | ||||||||
5.250%, 1–15–23 | 1,046 | 1,158 | ||||||
3.200%, 9–1–24 | 500 | 497 | ||||||
3.700%, 6–15–26 | 2,600 | 2,618 | ||||||
3.650%, 9–1–27 | 2,000 | 1,998 | ||||||
|
| |||||||
6,271 | ||||||||
|
| |||||||
Total Real Estate – 0.3% |
| 6,271 | ||||||
Telecommunication Services |
| |||||||
Integrated Telecommunication Services – 0.4% |
| |||||||
AT&T, Inc.: | ||||||||
4.125%, 2–17–26 | 900 | 925 | ||||||
3.900%, 8–14–27 | 2,000 | 2,002 | ||||||
4.900%, 8–14–37 | 1,000 | 1,012 | ||||||
5.150%, 2–14–50 | 1,500 | 1,511 | ||||||
Verizon Communications, Inc., | ||||||||
4.500%, 8–10–33 | 2,000 | 2,051 | ||||||
|
| |||||||
7,501 | ||||||||
|
| |||||||
Wireless Telecommunication Service – 0.6% |
| |||||||
American Tower Corp.: | ||||||||
2.250%, 1–15–22 | 7,500 | 7,376 | ||||||
4.700%, 3–15–22 | 1,400 | 1,517 | ||||||
3.375%, 10–15–26 | 3,000 | 2,964 | ||||||
Virgin Media Finance plc, | ||||||||
4.875%, 2–15–22 | 284 | 276 | ||||||
|
| |||||||
12,133 | ||||||||
|
| |||||||
Total Telecommunication Services – 1.0% |
| 19,634 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Utilities |
| |||||||
Electric Utilities – 0.6% |
| |||||||
Duke Energy Corp., | ||||||||
3.150%, 8–15–27 | $ | 1,000 | $ | 991 | ||||
Electricite de France S.A., | ||||||||
2.150%, 1–22–19 (B) | 3,750 | 3,764 | ||||||
Entergy Texas, Inc., | ||||||||
2.550%, 6–1–21 | 2,400 | 2,382 | ||||||
Exelon Corp., | ||||||||
2.450%, 4–15–21 | 2,500 | 2,500 | ||||||
PPL Energy Supply LLC, | ||||||||
4.600%, 12–15–21 | 2,800 | 2,303 | ||||||
|
| |||||||
11,940 | ||||||||
|
| |||||||
Independent Power Producers & Energy Traders – 0.5% |
| |||||||
Canadian Solar, Inc., Convertible, | ||||||||
4.250%, 2–15–19 | 9,700 | 9,372 | ||||||
|
| |||||||
Total Utilities – 1.1% |
| 21,312 | ||||||
TOTAL CORPORATE DEBT SECURITIES – 22.8% |
| $ | 444,236 | |||||
(Cost: $440,461) |
| |||||||
LOANS (C) | ||||||||
Industrials |
| |||||||
Industrial Machinery – 0.3% |
| |||||||
Dynacast International LLC (ICE LIBOR plus 850 bps), |
| |||||||
9.833%, 1–30–23 (D) | 6,526 | 6,526 | ||||||
|
| |||||||
Total Industrials – 0.3% |
| 6,526 | ||||||
TOTAL LOANS – 0.3% |
| $ | 6,526 | |||||
(Cost: $6,415) |
| |||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | ||||||||
Mortgage-Backed Obligations – 1.5% |
| |||||||
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates: | ||||||||
4.500%, 6–1–44 | 5,880 | 6,334 | ||||||
3.000%, 6–15–45 | 6,931 | 7,141 | ||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
5.000%, 1–1–18 | 1 | 1 | ||||||
6.500%, 10–1–28 | 31 | 34 | ||||||
6.500%, 2–1–29 | 5 | 5 | ||||||
3.500%, 6–25–29 | 4,018 | 4,222 | ||||||
7.000%, 11–1–31 | 41 | 46 | ||||||
6.500%, 2–1–32 | 31 | 35 | ||||||
7.000%, 2–1–32 | 46 | 53 | ||||||
7.000%, 3–1–32 | 21 | 24 | ||||||
7.000%, 7–1–32 | 25 | 28 | ||||||
6.500%, 9–1–32 | 25 | 28 | ||||||
5.500%, 5–1–33 | 19 | 22 | ||||||
5.500%, 6–1–33 | 18 | 20 | ||||||
4.500%, 11–1–43 | 5,001 | 5,466 |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) | ||||||||
3.000%, 10–25–46 | $ | 6,723 | $ | 6,873 | ||||
|
| |||||||
30,332 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 1.5% |
| $ | 30,332 | |||||
(Cost: $30,881) |
| |||||||
UNITED STATES GOVERNMENT OBLIGATIONS | ||||||||
Treasury Inflation Protected Obligations – 3.4% |
| |||||||
U.S. Treasury Notes: | ||||||||
0.125%, 7–15–26 | 24,509 | 23,818 | ||||||
2.125%, 2–15–40 | 21,745 | 27,331 | ||||||
1.000%, 2–15–46 | 14,463 | 14,654 | ||||||
|
| |||||||
65,803 | ||||||||
|
| |||||||
Treasury Obligations – 0.6% |
| |||||||
U.S. Treasury Notes: | ||||||||
1.875%, 7–31–22 | 2,000 | 1,995 | ||||||
2.125%, 7–31–24 | 3,000 | 2,994 | ||||||
2.250%, 8–15–27 | 6,500 | 6,453 | ||||||
|
| |||||||
11,442 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 4.0% |
| $ | 77,245 | |||||
(Cost: $79,393) |
| |||||||
SHORT-TERM SECURITIES | ||||||||
Commercial Paper (E) – 1.4% |
| |||||||
BorgWarner, Inc., | ||||||||
1.380%, 10–5–17 | 9,000 | 8,998 | ||||||
J.M. Smucker Co. (The), | ||||||||
1.371%, 10–6–17 | 5,000 | 4,999 | ||||||
Kroger Co. (The), | ||||||||
1.300%, 10–2–17 | 3,301 | 3,301 | ||||||
McCormick & Co., Inc., | ||||||||
1.580%, 10–10–17 | 10,000 | 9,995 | ||||||
|
| |||||||
27,293 | ||||||||
|
| |||||||
Master Note – 0.1% |
| |||||||
Toyota Motor Credit Corp. | ||||||||
1.450%, 10–4–17 (F) | 1,103 | 1,103 | ||||||
|
| |||||||
Municipal Obligations – 0.5% |
| |||||||
CA GO Bonds, Ser 2004B6 | ||||||||
0.890%, 10–7–17 (F) | 5,000 | 5,000 | ||||||
NY Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2012A (GTD by Bank of America N.A.) (BVAL plus 18 bps), | ||||||||
0.970%, 10–7–17 (F) | 4,500 | 4,500 | ||||||
|
| |||||||
9,500 | ||||||||
|
| |||||||
TOTAL SHORT-TERM | $ | 37,896 | ||||||
(Cost: $37,898) |
2017 | SEMIANNUAL REPORT | 19 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Value | ||||||||
TOTAL INVESTMENT |
| $ | 1,927,419 | |||||
(Cost: $1,717,437) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.0% |
| 19,505 | ||||||
NET ASSETS – 100.0% |
| $ | 1,946,924 |
Notes to Schedule of Investments
(A) | No dividends were paid during the preceding 12 months. |
(B) | Securities were purchased pursuant to an exemption from registration available under Rule 144A under the Securities Act of 1933 and may only be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2017 the total value of these securities amounted to $106,945 or 5.5% of net assets. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description. |
(D) | Securities whose value was determined using significant unobservable inputs. |
(E) | Rate shown is the yield to maturity at September 30, 2017. |
(F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 1,200,888 | $ | — | $ | — | ||||||
Preferred Stocks | 113,832 | 16,464 | — | |||||||||
Corporate Debt Securities | — | 444,236 | — | |||||||||
Loans | — | — | 6,526 | |||||||||
United States Government Agency Obligations | — | 30,332 | — | |||||||||
United States Government Obligations | — | 77,245 | — | |||||||||
Short-Term Securities | — | 37,896 | — | |||||||||
Total | $ | 1,314,720 | $ | 606,173 | $ | 6,526 |
During the period ended September 30, 2017, there were no transfers between any levels.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
BVAL = Bloomberg Valuation Municipal AAA Benchmark
GTD = Guaranteed
ICE = IntercontinentalExchange
LIBOR = London Interbank Offered Rate
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
20 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY ENERGY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 98.3% | |||
Energy | 96.4% | |||
Information Technology | 1.9% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 1.7% |
Lipper Rankings
Category: Natural Resources Funds | Rank | Percentile | ||||
1 Year | 84/92 | 91 | ||||
3 Year | 51/82 | 62 | ||||
5 Year | 29/68 | 43 | ||||
10 Year | 26/59 | 44 |
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 | 91.0% | |||
United States | 88.8% | |||
Other North America | 2.2% | |||
Europe | 5.6% | |||
Bahamas/Caribbean | 1.7% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 1.7% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Halliburton Co. | United States | Energy | Oil & Gas Equipment & Services | |||
RPC, Inc. | 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 | |||
Continental Resources, Inc. | United States | Energy | Oil & Gas Exploration & Production | |||
Pioneer Natural Resources Co. | United States | Energy | Oil & Gas Exploration & Production | |||
Parsley Energy, Inc., Class A | United States | Energy | Oil & Gas Exploration & Production | |||
Cimarex Energy Co. | United States | Energy | Oil & Gas Exploration & Production | |||
Concho Resources, Inc. | United States | Energy | Oil & Gas Exploration & Production | |||
Diamondback Energy, Inc. | 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. |
2017 | SEMIANNUAL REPORT | 21 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ENERGY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Energy |
| |||||||
Integrated Oil & Gas – 4.4% |
| |||||||
Chevron Corp. | 70 | $ | 8,190 | |||||
Royal Dutch Shell plc, Class A (A) | 208 | 6,296 | ||||||
Suncor Energy, Inc. | 163 | 5,701 | ||||||
|
| |||||||
20,187 | ||||||||
|
| |||||||
Oil & Gas Drilling – 4.3% |
| |||||||
Nabors Industries Ltd. | 999 | 8,065 | ||||||
Patterson-UTI Energy, Inc. | 578 | 12,104 | ||||||
|
| |||||||
20,169 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services – 32.2% |
| |||||||
Baker Hughes, Inc. | 239 | 8,758 | ||||||
C&J Energy Services, Inc. (B) | 214 | 6,428 | ||||||
Core Laboratories N.V. | 103 | 10,191 | ||||||
Forum Energy Technologies, Inc. (B) | 824 | 13,105 | ||||||
Halliburton Co. | 493 | 22,698 | ||||||
Hi-Crush Partners L.P. (B) | 354 | 3,367 | ||||||
Keane Group, Inc. (B) | 429 | 7,153 | ||||||
RPC, Inc. | 884 | 21,902 | ||||||
Schlumberger Ltd. | 304 | 21,175 | ||||||
Superior Energy Services, Inc. (B) | 1,119 | 11,951 | ||||||
U.S. Silica Holdings, Inc. | 423 | 13,132 | ||||||
Weatherford International Ltd. (B) | 2,035 | 9,320 | ||||||
|
| |||||||
149,180 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 46.2% |
| |||||||
Anadarko Petroleum Corp. | 188 | 9,200 | ||||||
Cimarex Energy Co. | 139 | 15,766 | ||||||
Concho Resources, Inc. (B) | 119 | 15,708 | ||||||
Continental Resources, Inc. (B) | 521 | 20,133 | ||||||
Devon Energy Corp. | 336 | 12,342 | ||||||
Diamondback Energy, Inc. (B) | 144 | 14,072 | ||||||
EOG Resources, Inc. | 216 | 20,881 | ||||||
Laredo Petroleum Holdings, Inc. (B) | 596 | 7,710 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Oil & Gas Exploration & Production (Continued) |
| |||||||
Marathon Oil Corp. | 660 | $ | 8,954 | |||||
Newfield Exploration Co. (B) | 366 | 10,871 | ||||||
Oasis Petroleum LLC (B) | 1,152 | 10,510 | ||||||
Parsley Energy, Inc., Class A (B) | 649 | 17,085 | ||||||
Pioneer Natural Resources Co. | 116 | 17,152 | ||||||
RSP Permian, Inc. (B) | 406 | 14,026 | ||||||
Whiting Petroleum Corp. (B) | 1,436 | 7,841 | ||||||
WPX Energy, Inc. (B) | 1,045 | 12,020 | ||||||
|
| |||||||
214,271 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 2.1% |
| |||||||
Marathon Petroleum Corp. | 66 | 3,704 | ||||||
Phillips 66 | 65 | 5,913 | ||||||
|
| |||||||
9,617 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 7.2% |
| |||||||
Enbridge, Inc. | 109 | 4,563 | ||||||
Energy Transfer Partners L.P. | 147 | 2,686 | ||||||
Enterprise Products Partners L.P. | 338 | 8,819 | ||||||
MPLX L.P. | 74 | 2,587 | ||||||
Phillips 66 Partners L.P. | 50 | 2,602 | ||||||
Plains GP Holdings L.P., Class A | 203 | 4,438 | ||||||
Tallgrass Energy GP L.P., Class A | 272 | 7,678 | ||||||
|
| |||||||
33,373 | ||||||||
|
| |||||||
Total Energy – 96.4% |
| 446,797 | ||||||
Information Technology |
| |||||||
Data Processing & Outsourced Services – 1.9% |
| |||||||
Wright Express Corp. (B) | 79 | 8,815 | ||||||
|
| |||||||
Total Information Technology – 1.9% |
| 8,815 | ||||||
TOTAL COMMON STOCKS – 98.3% |
| $ | 455,612 | |||||
(Cost: $422,428) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Commercial Paper (C) – 1.7% |
| |||||||
Kroger Co. (The), | ||||||||
1.300%, 10–2–17 | $ | 4,692 | $ | 4,691 | ||||
McDonalds Corp., | ||||||||
1.500%, 10–11–17 | 3,000 | 2,999 | ||||||
|
| |||||||
7,690 | ||||||||
|
| |||||||
Master Note – 0.0% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (D) | 75 | 75 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 1.7% |
| $ | 7,765 | |||||
(Cost: $7,766) |
| |||||||
TOTAL INVESTMENT |
| $ | 463,377 | |||||
(Cost: $430,194) |
| |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – 0.0% |
| (15 | ) | |||||
NET ASSETS – 100.0% |
| $ | 463,362 |
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, 2017. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 455,612 | $ | — | $ | — | ||||||
Short-Term Securities | — | 7,765 | — | |||||||||
Total | $ | 455,612 | $ | 7,765 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
22 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ENERGY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
The following acronym is used throughout this schedule:
LIBOR = London Interbank Offered Rate
Country Diversification | ||||
(as a % of net assets) |
| |||
United States | 88.8% | |||
Canada | 2.2% | |||
Netherlands | 2.2% | |||
Switzerland | 2.0% | |||
Bermuda | 1.7% | |||
United Kingdom | 1.4% | |||
Other+ | 1.7% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 23 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY LASALLE GLOBAL REAL ESTATE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 98.8% | |||
Real Estate | 98.8% | |||
Rights | 0.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 1.2% |
Lipper Rankings
Category: Global Real Estate Funds | Rank | Percentile | ||||
1 Year | 137/176 | 78 | ||||
3 Year | 125/136 | 92 |
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 | 55.4% | |||
United States | 54.1% | |||
Other North America | 1.3% | |||
Pacific Basin | 25.7% | |||
Japan | 11.6% | |||
Hong Kong | 7.6% | |||
Australia | 5.6% | |||
Other Pacific Basin | 0.9% | |||
Europe | 17.7% | |||
United Kingdom | 5.9% | |||
France | 4.1% | |||
Germany | 3.5% | |||
Other Europe | 4.2% | |||
Cash and Other Assets (Net of Liabilities), | �� | 1.2% |
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 | |||
Sun Hung Kai Properties Ltd. | Hong Kong | Real Estate | Diversified Real Estate Activities | |||
Welltower, Inc. | United States | Real Estate | Health Care REITs | |||
Mitsui Fudosan Co. Ltd. | Japan | Real Estate | Diversified Real Estate Activities | |||
AvalonBay Communities, Inc. | United States | Real Estate | Residential REITs | |||
Boston Properties, Inc. | United States | Real Estate | Office REITs | |||
Mitsubishi Estate Co. Ltd. | Japan | Real Estate | Diversified Real Estate Activities | |||
Unibail-Rodamco | France | Real Estate | Retail REITs | |||
Vornado Realty Trust | United States | Real Estate | Office 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. |
24 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LASALLE GLOBAL REAL ESTATE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Australia |
| |||||||
Real Estate – 5.6% |
| |||||||
GPT Group | 157 | $ | 611 | |||||
Mirvac Group | 540 | 969 | ||||||
National Storage REIT | 136 | 160 | ||||||
Scentre Group | 366 | 1,128 | ||||||
Vicinity Centres | 299 | 624 | ||||||
Westfield Corp. | 223 | 1,372 | ||||||
|
| |||||||
4,864 | ||||||||
|
| |||||||
Total Australia – 5.6% |
| 4,864 | ||||||
Belgium |
| |||||||
Real Estate – 0.3% |
| |||||||
Warehouses De Pauw | 2 | 229 | ||||||
|
| |||||||
Total Belgium – 0.3% |
| 229 | ||||||
Canada |
| |||||||
Real Estate – 1.3% |
| |||||||
Allied Properties | 6 | 186 | ||||||
Canadian Apartment Properties REIT | 4 | 115 | ||||||
Canadian REIT | 6 | 228 | ||||||
First Capital Realty, Inc. | 18 | 278 | ||||||
H&R Real Estate Investment Trust | 9 | 154 | ||||||
RioCan | 8 | 158 | ||||||
|
| |||||||
1,119 | ||||||||
|
| |||||||
Total Canada – 1.3% |
| 1,119 | ||||||
France |
| |||||||
Real Estate – 4.1% |
| |||||||
Fonciere des Regions S.A. | 3 | 282 | ||||||
Gecina | 5 | 859 | ||||||
Unibail-Rodamco | 9 | 2,308 | ||||||
|
| |||||||
3,449 | ||||||||
|
| |||||||
Total France – 4.1% |
| 3,449 | ||||||
Germany |
| |||||||
Real Estate – 3.5% |
| |||||||
Ado Properties S.A. | 4 | 174 | ||||||
alstria office AG | 24 | 347 | ||||||
Deutsche EuroShop AG | 8 | 290 | ||||||
LEG Immobilien AG | 6 | 651 | ||||||
Vonovia SE | 36 | 1,514 | ||||||
|
| |||||||
2,976 | ||||||||
|
| |||||||
Total Germany – 3.5% |
| 2,976 | ||||||
Hong Kong |
| |||||||
Real Estate – 7.6% |
| |||||||
Hongkong Land Holdings Ltd. | 182 | 1,310 | ||||||
Sun Hung Kai Properties Ltd. | 227 | 3,688 | ||||||
Swire Properties Ltd. | 404 | 1,369 | ||||||
|
| |||||||
6,367 | ||||||||
|
| |||||||
Total Hong Kong – 7.6% |
| 6,367 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Ireland |
| |||||||
Real Estate – 0.4% |
| |||||||
Hibernia REIT plc | 124 | $ | 224 | |||||
Irish Residential Properties REIT plc | 44 | 77 | ||||||
|
| |||||||
301 | ||||||||
|
| |||||||
Total Ireland – 0.4% |
| 301 | ||||||
Japan |
| |||||||
Real Estate – 11.6% |
| |||||||
Daiwa Office Investment Corp. | — | * | 425 | |||||
Global One Corp. | — | * | 156 | |||||
Heiwa Real Estate Co. Ltd. | 64 | 1,097 | ||||||
Ichigo Hotel Investment Corp. | — | * | 232 | |||||
Kenedix Office Investment Corp. | — | * | 468 | |||||
Mitsubishi Estate Co. Ltd. | 133 | 2,312 | ||||||
Mitsubishi Estate Logistics REIT Investment Corp. | — | * | 299 | |||||
Mitsui Fudosan Co. Ltd. | 165 | 3,227 | ||||||
Nomura Real Estate Holdings, Inc. | 17 | 362 | ||||||
Sumitomo Realty & Development | 35 | 1,059 | ||||||
|
| |||||||
9,637 | ||||||||
|
| |||||||
Total Japan – 11.6% |
| 9,637 | ||||||
Netherlands |
| |||||||
Real Estate – 0.6% |
| |||||||
NSI N.V. | 6 | 218 | ||||||
Vastned Retail N.V. | 5 | 242 | ||||||
|
| |||||||
460 | ||||||||
|
| |||||||
Total Netherlands – 0.6% |
| 460 | ||||||
Norway |
| |||||||
Real Estate – 0.4% |
| |||||||
Entra ASA | 27 | 372 | ||||||
|
| |||||||
Total Norway – 0.4% |
| 372 | ||||||
Singapore |
| |||||||
Real Estate – 0.9% |
| |||||||
CapitaCommercial Trust | 184 | 224 | ||||||
CapitaLand Ltd. | 184 | 486 | ||||||
|
| |||||||
710 | ||||||||
|
| |||||||
Total Singapore – 0.9% |
| 710 | ||||||
Spain |
| |||||||
Real Estate – 1.3% |
| |||||||
Axiare Patrimonio Socimi S.A. | 9 | 190 | ||||||
Lar Espana Real Estate Socimi S.A. | 20 | 195 | ||||||
Merlin Properties Socimi S.A. | 54 | 747 | ||||||
|
| |||||||
1,132 | ||||||||
|
| |||||||
Total Spain – 1.3% |
| 1,132 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Sweden |
| |||||||
Real Estate – 0.6% |
| |||||||
Kungsleden AB | 68 | $ | 471 | |||||
|
| |||||||
Total Sweden – 0.6% |
| 471 | ||||||
Switzerland |
| |||||||
Real Estate – 0.6% |
| |||||||
PSP Swiss Property Ltd., Registered Shares | 5 | 498 | ||||||
|
| |||||||
Total Switzerland – 0.6% |
| 498 | ||||||
United Kingdom |
| |||||||
Real Estate – 5.9% |
| |||||||
Assura plc | 245 | 206 | ||||||
Big Yellow Group plc | 44 | 444 | ||||||
Derwent London plc | 33 | 1,232 | ||||||
Great Portland Estates plc | 46 | 378 | ||||||
Intu Properties plc | 61 | 190 | ||||||
Land Securities Group plc | 135 | 1,754 | ||||||
SEGRO plc | 55 | 394 | ||||||
Shaftesbury plc | 31 | 416 | ||||||
|
| |||||||
5,014 | ||||||||
|
| |||||||
Total United Kingdom – 5.9% |
| 5,014 | ||||||
United States |
| |||||||
Real Estate – 54.1% |
| |||||||
American Campus Communities, Inc. | 31 | 1,369 | ||||||
American Homes 4 Rent | 21 | 455 | ||||||
American Tower Corp., Class A | 9 | 1,291 | ||||||
AvalonBay Communities, Inc. | 16 | 2,849 | ||||||
Boston Properties, Inc. | 19 | 2,320 | ||||||
Brixmor Property Group, Inc. | 57 | 1,079 | ||||||
Camden Property Trust | 16 | 1,448 | ||||||
Crown Castle International Corp. | 10 | 1,014 | ||||||
CubeSmart | 56 | 1,458 | ||||||
Digital Realty Trust, Inc. | 5 | 603 | ||||||
Duke Realty Corp. | 35 | 1,010 | ||||||
Equinix, Inc. | 2 | 707 | ||||||
Equity Residential | 57 | 3,785 | ||||||
Federal Realty Investment Trust | 7 | 843 | ||||||
First Industrial Realty Trust, Inc. | 15 | 440 | ||||||
GGP, Inc. | 68 | 1,406 | ||||||
LaSalle Hotel Properties | 35 | 1,008 | ||||||
Life Storage, Inc. | 10 | 779 | ||||||
National Retail Properties, Inc. | 21 | 870 | ||||||
Paramount Group, Inc. | 48 | 767 | ||||||
Park Hotels & Resorts, Inc. | 32 | 888 | ||||||
ProLogis, Inc. | 11 | 716 | ||||||
Public Storage, Inc. | 8 | 1,734 | ||||||
Quality Care Properties, Inc. (A) | 5 | 78 | ||||||
Regency Centers Corp. | 15 | 927 | ||||||
RLJ Lodging Trust | 43 | 940 | ||||||
Simon Property Group, Inc. | 32 | 5,166 | ||||||
SL Green Realty Corp. | 14 | 1,415 | ||||||
Taubman Centers, Inc. | 13 | 647 | ||||||
Ventas, Inc. | 19 | 1,234 |
2017 | SEMIANNUAL REPORT | 25 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LASALLE GLOBAL REAL ESTATE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS (Continued) | Shares | Value | ||||||
Real Estate (Continued) | ||||||||
VEREIT, Inc. | 98 | $ | 809 | |||||
Vornado Realty Trust | 30 | 2,293 | ||||||
Welltower, Inc. | 42 | 2,977 | ||||||
|
| |||||||
45,325 | ||||||||
|
| |||||||
Total United States – 54.1% |
| 45,325 | ||||||
TOTAL COMMON STOCKS – 98.8% |
| $ | 82,924 | |||||
(Cost: $79,664) | ||||||||
RIGHTS | ||||||||
Singapore – 0.0% |
| |||||||
CapitaLand Commercial Trust Management Ltd., | 31 | 7 | ||||||
|
| |||||||
TOTAL RIGHTS – 0.0% |
| $ | 7 | |||||
(Cost: $6) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Master Note – 0.4% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) | ||||||||
1.450%, 10–4–17 (B) | $ | 344 | $ | 344 | ||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 0.4% |
| $ | 344 | |||||
(Cost: $344) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.2% |
| $ | 83,275 | |||||
(Cost: $80,014) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.8% |
| 660 | ||||||
NET ASSETS – 100.0% |
| $ | 83,935 |
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, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 82,924 | $ | — | $ | — | ||||||
Rights | — | 7 | — | |||||||||
Short-Term Securities | — | 344 | — | |||||||||
Total | $ | 82,924 | $ | 351 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
LIBOR = London Interbank Offered Rate
REIT = Real Estate Investment Trusts
Market Sector Diversification | ||||
(as a % of net assets) |
| |||
Real Estate | 98.8% | |||
Other+ | 1.2% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
26 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 99.0% | |||
Real Estate | 99.0% | |||
Rights | 0.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 1.0% |
Lipper Rankings
Category: Global Real Estate Funds | Rank | Percentile | ||||
1 Year | 172/176 | 98 | ||||
3 Year | 74/136 | 55 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
North America | 55.9% | |||
United States | 54.6% | |||
Other North America | 1.3% | |||
Pacific Basin | 24.5% | |||
Japan | 8.6% | |||
Hong Kong | 8.2% | |||
Australia | 6.8% | |||
Other Pacific Basin | 0.9% | |||
Europe | 18.6% | |||
United Kingdom | 6.6% | |||
France | 4.3% | |||
Germany | 3.7% | |||
Other Europe | 4.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 1.0% |
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 | |||
Boston Properties, Inc. | United States | Real Estate | Office REITs | |||
Welltower, Inc. | United States | Real Estate | Health Care REITs | |||
AvalonBay Communities, Inc. | United States | Real Estate | Residential REITs | |||
Hongkong Land Holdings Ltd. | Hong Kong | Real Estate | Real Estate Operating Companies | |||
Public Storage, Inc. | United States | Real Estate | Specialized REITs | |||
Swire Properties Ltd. | Hong Kong | Real Estate | Real Estate Operating Companies | |||
Vornado Realty Trust | United States | Real Estate | Office REITs | |||
Unibail-Rodamco | France | Real Estate | Retail 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. |
2017 | SEMIANNUAL REPORT | 27 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Australia |
| |||||||
Real Estate – 6.8% |
| |||||||
GPT Group | 511 | $ | 1,987 | |||||
Scentre Group | 535 | 1,649 | ||||||
Vicinity Centres | 511 | 1,066 | ||||||
Westfield Corp. | 381 | 2,346 | ||||||
|
| |||||||
7,048 | ||||||||
|
| |||||||
Total Australia – 6.8% |
| 7,048 | ||||||
Canada |
| |||||||
Real Estate – 1.3% |
| |||||||
Allied Properties | 8 | 248 | ||||||
Canadian Apartment Properties REIT | 7 | 202 | ||||||
Canadian REIT | 12 | 445 | ||||||
RioCan | 18 | 350 | ||||||
SmartREIT | 7 | 163 | ||||||
|
| |||||||
1,408 | ||||||||
|
| |||||||
Total Canada – 1.3% |
| 1,408 | ||||||
France |
| |||||||
Real Estate – 4.3% |
| |||||||
Gecina | 9 | 1,452 | ||||||
Unibail-Rodamco | 12 | 2,958 | ||||||
|
| |||||||
4,410 | ||||||||
|
| |||||||
Total France – 4.3% |
| 4,410 | ||||||
Germany |
| |||||||
Real Estate – 3.7% |
| |||||||
Ado Properties S.A. | 7 | 350 | ||||||
alstria office AG | 33 | 471 | ||||||
Deutsche EuroShop AG | 16 | 596 | ||||||
Deutsche Wohnen AG | 9 | 388 | ||||||
LEG Immobilien AG | 19 | 1,943 | ||||||
|
| |||||||
3,748 | ||||||||
|
| |||||||
Total Germany – 3.7% |
| 3,748 | ||||||
Hong Kong |
| |||||||
Real Estate – 8.2% |
| |||||||
Hongkong Land Holdings Ltd. | 502 | 3,611 | ||||||
Link (The) | 172 | 1,390 | ||||||
Swire Properties Ltd. | 1,053 | 3,573 | ||||||
|
| |||||||
8,574 | ||||||||
|
| |||||||
Total Hong Kong – 8.2% |
| 8,574 | ||||||
Ireland |
| |||||||
Real Estate – 0.7% |
| |||||||
Hibernia REIT plc | 220 | 396 | ||||||
Irish Residential Properties REIT plc | 154 | 269 | ||||||
|
| |||||||
665 | ||||||||
|
| |||||||
Total Ireland – 0.7% |
| 665 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Japan |
| |||||||
Real Estate – 8.6% |
| |||||||
Aeon REIT Investment Corp. | — | * | $ | 187 | ||||
Daiwa Office Investment Corp. | — | * | 1,271 | |||||
Hulic, Inc. | 1 | 791 | ||||||
Japan Retail Fund Investment Corp. | — | * | 574 | |||||
Kenedix Office Investment Corp. | — | * | 1,925 | |||||
Kenedix Retail Corp. | — | * | 177 | |||||
Mitsubishi Estate Logistics REIT Investment Corp. | — | * | 674 | |||||
Mitsui Fudosan Co. Ltd. | 25 | 281 | ||||||
Nippon Building Fund, Inc. | — | * | 493 | |||||
ORIX JREIT, Inc. | 2 | 2,213 | ||||||
Sekisui House REIT, Inc. | — | * | 245 | |||||
|
| |||||||
8,831 | ||||||||
|
| |||||||
Total Japan – 8.6% |
| 8,831 | ||||||
Netherlands |
| |||||||
Real Estate – 1.0% |
| |||||||
NSI N.V. | 7 | 294 | ||||||
Vastned Retail N.V. | 16 | 727 | ||||||
|
| |||||||
1,021 | ||||||||
|
| |||||||
Total Netherlands – 1.0% |
| 1,021 | ||||||
Singapore |
| |||||||
Real Estate – 0.9% |
| |||||||
CapitaCommercial Trust | 292 | 357 | ||||||
CapitaMall Trust | 229 | 337 | ||||||
Mapletree Commercial Trust | 263 | 294 | ||||||
|
| |||||||
988 | ||||||||
|
| |||||||
Total Singapore – 0.9% |
| 988 | ||||||
Spain |
| |||||||
Real Estate – 0.9% |
| |||||||
Axiare Patrimonio Socimi S.A. | 26 | 531 | ||||||
Lar Espana Real Estate Socimi S.A. | 44 | 428 | ||||||
|
| |||||||
959 | ||||||||
|
| |||||||
Total Spain – 0.9% |
| 959 | ||||||
Sweden |
| |||||||
Real Estate – 0.7% |
| |||||||
Hufvudstaden AB | 42 | 723 | ||||||
|
| |||||||
Total Sweden – 0.7% |
| 723 | ||||||
Switzerland |
| |||||||
Real Estate – 0.7% |
| |||||||
PSP Swiss Property Ltd., Registered Shares | 8 | 754 | ||||||
|
| |||||||
Total Switzerland – 0.7% |
| 754 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United Kingdom |
| |||||||
Real Estate – 6.6% |
| |||||||
Assura plc | 337 | $ | 283 | |||||
Big Yellow Group plc | 68 | 692 | ||||||
Derwent London plc | 52 | 1,935 | ||||||
Land Securities Group plc | 198 | 2,586 | ||||||
SEGRO plc | 75 | 536 | ||||||
Shaftesbury plc | 57 | 775 | ||||||
|
| |||||||
6,807 | ||||||||
|
| |||||||
Total United Kingdom – 6.6% |
| 6,807 | ||||||
United States |
| |||||||
Real Estate – 54.6% |
| |||||||
American Campus Communities, Inc. | 41 | 1,803 | ||||||
AvalonBay Communities, Inc. | 21 | 3,743 | ||||||
Boston Properties, Inc. | 32 | 3,891 | ||||||
Brixmor Property Group, Inc. | 84 | 1,578 | ||||||
Camden Property Trust | 24 | 2,190 | ||||||
Corporate Office Properties Trust | 29 | 966 | ||||||
CubeSmart | 72 | 1,866 | ||||||
Duke Realty Corp. | 45 | 1,301 | ||||||
Equity Residential | 80 | 5,276 | ||||||
Federal Realty Investment Trust | 15 | 1,907 | ||||||
First Industrial Realty Trust, Inc. | 18 | 546 | ||||||
GGP, Inc. | 95 | 1,975 | ||||||
Hudson Pacific Properties, Inc. | 25 | 854 | ||||||
Life Storage, Inc. | 13 | 1,045 | ||||||
National Retail Properties, Inc. | 38 | 1,599 | ||||||
Paramount Group, Inc. | 95 | 1,515 | ||||||
ProLogis, Inc. | 24 | 1,512 | ||||||
Public Storage, Inc. | 17 | 3,577 | ||||||
Regency Centers Corp. | 28 | 1,712 | ||||||
Simon Property Group, Inc. | 43 | 6,954 | ||||||
Spirit Realty Capital, Inc. | 62 | 533 | ||||||
Taubman Centers, Inc. | 24 | 1,200 | ||||||
Ventas, Inc. | 37 | 2,401 | ||||||
Vornado Realty Trust | 39 | 2,967 | ||||||
Welltower, Inc. | 55 | 3,870 | ||||||
|
| |||||||
56,781 | ||||||||
|
| |||||||
Total United States – 54.6% |
| 56,781 | ||||||
TOTAL COMMON STOCKS – 99.0% |
| $ | 102,717 | |||||
(Cost: $97,418) |
| |||||||
RIGHTS | ||||||||
Singapore – 0.0% |
| |||||||
CapitaLand Commercial Trust Management Ltd., | 49 | 10 | ||||||
|
| |||||||
TOTAL RIGHTS – 0.0% |
| $ | 10 | |||||
(Cost: $9) |
|
28 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
SHORT-TERM SECURITIES | Principal | Value | ||||||
Master Note – 0.1% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) | ||||||||
1.450%, 10–4–17 (A) | $ | 118 | $ | 118 | ||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 0.1% |
| $ | 118 | |||||
(Cost: $118) |
| |||||||
TOTAL INVESTMENT |
| $ | 102,845 | |||||
(Cost: $97,545) |
| |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.9% |
| 939 | ||||||
NET ASSETS – 100.0% |
| $ | 103,784 |
Notes to Schedule of Investments
* | Not shown due to rounding. |
(A) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 102,717 | $ | — | $ | — | ||||||
Rights | — | 10 | — | |||||||||
Short-Term Securities | — | 118 | — | |||||||||
Total | $ | 102,717 | $ | 128 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
LIBOR = London Interbank Offered Rate
REIT = Real Estate Investment Trusts
Market Sector Diversification | ||||
(as a % of net assets) |
| |||
Real Estate | 99.0% | |||
Other+ | 1.0% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 29 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY NATURAL RESOURCES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 97.5% | |||
Energy | 69.3% | |||
Materials | 23.4% | |||
Industrials | 3.7% | |||
Consumer Staples | 1.1% | |||
Utilities | 0.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 2.5% |
Lipper Rankings
Category: Global Natural Resources Funds | Rank | Percentile | ||||
1 Year | 89/126 | 71 | ||||
3 Year | 72/120 | 60 | ||||
5 Year | 62/111 | 56 | ||||
10 Year | 51/68 | 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 Diversification
(as a % of net assets) |
| |||
United States | 77.3% | |||
United Kingdom | 10.1% | |||
Canada | 8.3% | |||
Netherlands | 1.8% | |||
Other Countries | 0.0% | |||
Other+ | 2.5% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Halliburton Co. | United States | Energy | Oil & Gas Equipment & Services | |||
EOG Resources, Inc. | United States | Energy | Oil & Gas Exploration & Production | |||
RPC, Inc. | United States | Energy | Oil & Gas Equipment & Services | |||
BHP Billiton plc | United Kingdom | Materials | Diversified Metals & Mining | |||
Rio Tinto plc | United Kingdom | Materials | Diversified Metals & Mining | |||
Air Products and Chemicals, Inc. | United States | Materials | Industrial Gases | |||
Phillips 66 | United States | Energy | Oil & Gas Refining & Marketing | |||
Dow Chemical Co. (The) | United States | Materials | Diversified Chemicals | |||
Cabot Oil & Gas Corp. | United States | Energy | Oil & Gas Exploration & Production | |||
Potash Corp. of Saskatchewan, Inc. | Canada | Materials | Fertilizers & Agricultural Chemicals |
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 | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY NATURAL RESOURCES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Canada |
| |||||||
Energy – 3.1% |
| |||||||
Seven Generations Energy Ltd., Class A (A) | 823 | $ | 13,020 | |||||
Suncor Energy, Inc. | 178 | 6,234 | ||||||
|
| |||||||
19,254 | ||||||||
|
| |||||||
Materials – 5.2% |
| |||||||
Potash Corp. of Saskatchewan, Inc. | 969 | 18,645 | ||||||
West Fraser Timber Co. Ltd. | 220 | 12,706 | ||||||
|
| |||||||
31,351 | ||||||||
|
| |||||||
Total Canada – 8.3% |
| 50,605 | ||||||
China |
| |||||||
Materials – 0.0% |
| |||||||
China Metal Recycling (Holdings) Ltd. (A)(B) | 30,000 | — | ||||||
|
| |||||||
Total China – 0.0% |
| — | ||||||
Netherlands |
| |||||||
Energy – 1.8% |
| |||||||
Core Laboratories N.V. | 110 | 10,887 | ||||||
|
| |||||||
Total Netherlands – 1.8% |
| 10,887 | ||||||
United Kingdom |
| |||||||
Materials – 10.1% |
| |||||||
BHP Billiton plc | 1,245 | 21,932 | ||||||
Croda International plc | 31 | 1,553 | ||||||
Randgold Resources Ltd. ADR | 169 | 16,457 | ||||||
Rio Tinto plc | 461 | 21,449 | ||||||
|
| |||||||
61,391 | ||||||||
|
| |||||||
Total United Kingdom – 10.1% |
| 61,391 | ||||||
United States |
| |||||||
Consumer Staples – 1.1% |
| |||||||
Ingredion, Inc. | 56 | 6,714 | ||||||
|
| |||||||
Energy – 64.4% |
| |||||||
Cabot Oil & Gas Corp. | 760 | 20,329 | ||||||
Chevron Corp. | 145 | 17,014 | ||||||
Cimarex Energy Co. | 145 | 16,437 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Energy (Continued) | ||||||||
Concho Resources, Inc. (A) | 134 | $ | 17,618 | |||||
Continental Resources, | 297 | 11,469 | ||||||
Diamondback Energy, Inc. (A) | 164 | 16,085 | ||||||
Enterprise Products Partners L.P. | 548 | 14,295 | ||||||
EOG Resources, Inc. | 242 | 23,363 | ||||||
EQT Midstream Partners L.P. | 107 | 8,052 | ||||||
Halliburton Co. (C) | 931 | 42,872 | ||||||
Helmerich & Payne, Inc. | 61 | 3,163 | ||||||
Keane Group, Inc. (A) | 311 | 5,183 | ||||||
Magellan Midstream Partners L.P. | 213 | 15,143 | ||||||
Marathon Petroleum Corp. | 166 | 9,315 | ||||||
MPLX L.P. | 385 | 13,463 | ||||||
Noble Energy, Inc. | 290 | 8,214 | ||||||
Parsley Energy, Inc., Class A (A) | 568 | 14,973 | ||||||
Patterson-UTI Energy, Inc. | 844 | 17,679 | ||||||
Phillips 66 | 227 | 20,809 | ||||||
Pioneer Natural Resources Co. | 103 | 15,189 | ||||||
Plains All American Pipeline L.P. | 447 | 9,481 | ||||||
RPC, Inc. | 916 | 22,706 | ||||||
RSP Permian, Inc. (A) | 371 | 12,828 | ||||||
Schlumberger Ltd. | 221 | 15,383 | ||||||
U.S. Silica Holdings, Inc. | 152 | 4,720 | ||||||
WPX Energy, Inc. (A) | 1,348 | 15,505 | ||||||
|
| |||||||
391,288 | ||||||||
|
| |||||||
Industrials – 3.7% |
| |||||||
Flowserve Corp. | 199 | 8,495 | ||||||
Union Pacific Corp. | 122 | 14,200 | ||||||
|
| |||||||
22,695 | ||||||||
|
| |||||||
Materials – 8.1% |
| |||||||
Air Products and Chemicals, Inc. | 139 | 20,974 | ||||||
Dow Chemical Co. (The) | 300 | 20,734 | ||||||
Ecolab, Inc. | 47 | 6,083 | ||||||
PPG Industries, Inc. | 14 | 1,532 | ||||||
|
| |||||||
49,323 | ||||||||
|
| |||||||
Total United States – 77.3% |
| 470,020 | ||||||
TOTAL COMMON STOCKS – 97.5% |
| $ | 592,903 | |||||
(Cost: $549,413) |
|
PREFERRED STOCKS | Shares | Value | ||||||
United States |
| |||||||
Utilities – 0.0% |
| |||||||
Konarka Technologies, Inc., | ||||||||
8.000%, Convertible (A)(B)(D) | 3,500 | $ | — | |||||
|
| |||||||
Total United States – 0.0% |
| — | ||||||
TOTAL PREFERRED STOCKS – 0.0% |
| $ | — | |||||
(Cost: $10,850) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (E) – 3.5% |
| |||||||
J.M. Smucker Co. (The) | ||||||||
1.371%, 10–6–17 | $ | 5,000 | 4,999 | |||||
Northern Illinois Gas Co. | ||||||||
1.250%, 10–2–17 | 6,254 | 6,253 | ||||||
Virginia Electric and Power Co. | ||||||||
1.560%, 10–12–17 | 5,000 | 4,997 | ||||||
Walgreens Boots Alliance, Inc. | ||||||||
1.490%, 10–12–17 | 5,000 | 4,998 | ||||||
|
| |||||||
21,247 | ||||||||
|
| |||||||
Master Note – 0.3% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) | ||||||||
1.450%, 10–4–17 (F) | 1,631 | 1,631 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 3.8% |
| $ | 22,878 | |||||
(Cost: $22,880) |
| |||||||
TOTAL INVESTMENT | $ | 615,781 | ||||||
(Cost: $583,143) |
| |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.3)% |
| (7,638 | ) | |||||
NET ASSETS – 100.0% |
| $ | 608,143 |
Notes to Schedule of Investments
(A) | No dividends were paid during the preceding 12 months. |
(B) | Securities whose value was determined using significant unobservable inputs. |
(C) | All or a portion of securities with an aggregate value of $1,772 are held in collateralized accounts for OTC foreign forward currency contracts collateral. |
(D) | Restricted security. At September 30, 2017, 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 | $ | — |
2017 | SEMIANNUAL REPORT | 31 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY NATURAL RESOURCES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
The | total value of this security represented 0.0% of net assets at September 30, 2017. |
(E) | Rate shown is the yield to maturity at September 30, 2017. |
(F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following forward foreign currency contracts were outstanding at September 30, 2017:
Currency to be Delivered | Currency to be Received | Settlement Date | Counterparty | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||||||
British Pound | 32,234 | U.S. Dollar | 41,673 | 10–5–17 | UBS AG | $ | — | $ | 1,523 | |||||||||||||||||
Canadian Dollar | 34,933 | U.S. Dollar | 27,775 | 10–5–17 | UBS AG | — | 223 | |||||||||||||||||||
|
| |||||||||||||||||||||||||
$ | — | $ | 1,746 | |||||||||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 592,903 | $ | — | $ | — | ||||||
Preferred Stocks | — | — | — | |||||||||
Short-Term Securities | — | 22,878 | — | |||||||||
Total | $ | 592,903 | $ | 22,878 | $ | — | ||||||
Liabilities | ||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 1,746 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
LIBOR = London Interbank Offered Rate
OTC = Over the Counter
Market Sector Diversification | ||||
(as a % of net assets) |
| |||
Energy | 69.3% | |||
Materials | 23.4% | |||
Industrials | 3.7% | |||
Consumer Staples | 1.1% | |||
Utilities | 0.0% | |||
Other+ | 2.5% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
32 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY SCIENCE AND TECHNOLOGY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 97.7% | |||
Information Technology | 74.5% | |||
Health Care | 15.1% | |||
Consumer Discretionary | 2.7% | |||
Telecommunication Services | 1.9% | |||
Real Estate | 1.5% | |||
Industrials | 1.0% | |||
Utilities | 0.9% | |||
Materials | 0.1% | |||
Consumer Staples | 0.0% | |||
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+ | 1.7% |
Lipper Rankings
Category: Science & Technology Funds | Rank | Percentile | ||||
1 Year | 63/171 | 37 | ||||
3 Year | 131/149 | 88 | ||||
5 Year | 102/140 | 73 | ||||
10 Year | 32/124 | 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 | 83.7% | |||
United States | 83.7% | |||
Pacific Basin | 9.2% | |||
China | 5.2% | |||
India | 4.0% | |||
Europe | 3.5% | |||
Bahamas/Caribbean | 1.7% | |||
Other | 0.2% | |||
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options | 1.7% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Micron Technology, Inc. | United States | Information Technology | Semiconductors | |||
Microsoft Corp. | United States | Information Technology | Systems Software | |||
Vertex Pharmaceuticals, Inc. | United States | Health Care | Biotechnology | |||
Microsemi Corp. | United States | Information Technology | Semiconductors | |||
Facebook, Inc., Class A | United States | Information Technology | Internet Software & Services | |||
Euronet Worldwide, Inc. | United States | Information Technology | Data Processing & Outsourced Services | |||
ACI Worldwide, Inc. | United States | Information Technology | Application Software | |||
Alibaba Group Holding Ltd. ADR | China | Information Technology | Internet Software & Services | |||
WNS (Holdings) Ltd. ADR | India | Information Technology | Data Processing & Outsourced Services | |||
Cerner Corp. | United States | Health Care | Health Care Technology |
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. |
2017 | SEMIANNUAL REPORT | 33 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY SCIENCE AND TECHNOLOGY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary | ||||||||
Automobile Manufacturers – 0.8% |
| |||||||
Tesla Motors, Inc. (A) | 96 | $ | 32,678 | |||||
|
| |||||||
Internet & Direct Marketing Retail – 1.9% |
| |||||||
Amazon.com, Inc. (A) | 22 | 20,765 | ||||||
Netflix, Inc. (A) | 325 | 58,993 | ||||||
|
| |||||||
79,758 | ||||||||
|
| |||||||
Total Consumer Discretionary – 2.7% |
| 112,436 | ||||||
Consumer Staples | ||||||||
Agricultural Products – 0.0% | ||||||||
Arcadia Biosciences, Inc. (A) | 1,942 | 835 | ||||||
|
| |||||||
Total Consumer Staples – 0.0% |
| 835 | ||||||
Health Care | ||||||||
Biotechnology – 11.2% | ||||||||
BioMarin Pharmaceutical, Inc. (A) | 415 | 38,633 | ||||||
Evogene Ltd. (A)(B) | 1,465 | 6,461 | ||||||
Gilead Sciences, Inc. | 255 | 20,636 | ||||||
Ionis Pharmaceuticals, Inc. (A) | 2,251 | 114,100 | ||||||
Kite Pharma, Inc. (A) | 469 | 84,277 | ||||||
Vertex Pharmaceuticals, Inc. (A) | 1,344 | 204,266 | ||||||
|
| |||||||
468,373 | ||||||||
|
| |||||||
Health Care Technology – 3.9% | ||||||||
Cerner Corp. (A) | 2,306 | 164,478 | ||||||
|
| |||||||
Total Health Care – 15.1% | 632,851 | |||||||
Industrials | ||||||||
Air Freight & Logistics – 1.0% | ||||||||
Best, Inc. ADR (A) | 3,454 | 41,350 | ||||||
|
| |||||||
Total Industrials – 1.0% | 41,350 | |||||||
Information Technology | ||||||||
Application Software – 8.8% | ||||||||
ACI Worldwide, Inc. (A)(B) | 7,802 | 177,740 | ||||||
Aspen Technology, Inc. (A) | 2,373 | 149,036 | ||||||
Globant S.A. (A) | 459 | 18,398 | ||||||
Snap, Inc., Class A (A) | 1,734 | 25,215 | ||||||
|
| |||||||
370,389 | ||||||||
|
| |||||||
Data Processing & Outsourced Services – 11.1% |
| |||||||
Alliance Data Systems Corp. | 550 | 121,852 | ||||||
Euronet Worldwide, Inc. (A) | 1,895 | 179,639 | ||||||
WNS (Holdings) Ltd. ADR (A)(B) | 4,581 | 167,219 | ||||||
|
| |||||||
468,710 | ||||||||
|
| |||||||
Electronic Components – 3.8% | ||||||||
Universal Display Corp. | 1,235 | 159,110 | ||||||
|
| |||||||
Internet Software & Services – 14.4% |
| |||||||
Alibaba Group Holding Ltd. | 1,020 | 176,112 | ||||||
Alphabet, Inc., Class A (A) | 99 | 96,301 | ||||||
Alphabet, Inc., Class C (A) | 129 | 123,479 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Internet Software & Services (Continued) |
| |||||||
Facebook, Inc., Class A (A) | 1,094 | $ | 187,007 | |||||
Pandora Media, Inc. (A) | 2,952 | 22,727 | ||||||
|
| |||||||
605,626 | ||||||||
|
| |||||||
IT Consulting & Other Services – 1.2% |
| |||||||
CSRA, Inc. | 1,561 | 50,369 | ||||||
|
| |||||||
Semiconductor Equipment – 2.1% |
| |||||||
ASML Holding N.V., NY Registry Shares | 509 | 87,124 | ||||||
|
| |||||||
Semiconductors – 21.2% | ||||||||
Cypress Semiconductor Corp. | 8,334 | 125,180 | ||||||
Dialog Semiconductor plc (A)(C) | 469 | 20,720 | ||||||
Marvell Technology Group Ltd. | 3,901 | 69,819 | ||||||
Microchip Technology, Inc. | 533 | 47,835 | ||||||
Micron Technology, Inc. (A) | 7,729 | 303,970 | ||||||
Microsemi Corp. (A) | 3,746 | 192,863 | ||||||
Rambus, Inc. (A)(B) | 5,497 | 73,386 | ||||||
Semtech Corp. (A) | 1,532 | 57,513 | ||||||
|
| |||||||
891,286 | ||||||||
|
| |||||||
Systems Software – 5.6% | ||||||||
Microsoft Corp. | 3,166 | 235,843 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 6.3% |
| |||||||
Apple, Inc. (D) | 1,010 | 155,600 | ||||||
Hewlett-Packard Co. | 5,389 | 107,566 | ||||||
|
| |||||||
263,166 | ||||||||
|
| |||||||
Total Information Technology – 74.5% |
| 3,131,623 | ||||||
Materials | ||||||||
Fertilizers & Agricultural Chemicals – 0.1% |
| |||||||
Marrone Bio Innovations, Inc. (A)(B) | 2,608 | 2,999 | ||||||
|
| |||||||
Total Materials – 0.1% | 2,999 | |||||||
Real Estate | ||||||||
Specialized REITs – 1.5% | ||||||||
QTS Realty Trust, Inc., Class A | 1,219 | 63,848 | ||||||
|
| |||||||
Total Real Estate – 1.5% | 63,848 | |||||||
Telecommunication Services | ||||||||
Alternative Carriers – 1.9% | ||||||||
Zayo Group Holdings, Inc. (A) | 2,341 | 80,570 | ||||||
|
| |||||||
Total Telecommunication |
| 80,570 | ||||||
Utilities | ||||||||
Renewable Electricity – 0.9% | ||||||||
Atlantica Yield plc | 2,025 | 39,887 | ||||||
|
| |||||||
Total Utilities – 0.9% | 39,887 |
Shares | Value | |||||||
TOTAL COMMON STOCKS – 97.7% |
| $ | 4,106,399 | |||||
(Cost: $2,030,987) | ||||||||
WARRANTS | ||||||||
Fertilizers & Agricultural Chemicals – 0.0% |
| |||||||
Marrone Bio Innovations, Inc., expires 8-20-23 (B)(E)(F) | 2,390 | — | ||||||
|
| |||||||
TOTAL WARRANTS – 0.0% | $ | — | ||||||
(Cost: $—) |
PURCHASED OPTIONS | Number of Contracts (Unrounded) | Notional Amount | ||||||||||
Apple, Inc., Call $167.50, Expires 10–6–17, OTC (Ctrpty: Citibank N.A.) | 7,692 | 769 | 23 | |||||||||
|
| |||||||||||
TOTAL PURCHASED OPTIONS – 0.0% |
| $ | 23 | |||||||||
(Cost: $1,392) |
CORPORATE DEBT SECURITIES | Principal | |||||||
Materials | ||||||||
Fertilizers & Agricultural Chemicals – 0.6% |
| |||||||
Marrone Bio Innovations, Inc., | ||||||||
8.000%, 8–20–20 (B)(E) | $ | 23,900 | 23,991 | |||||
|
| |||||||
Total Materials – 0.6% | 23,991 | |||||||
TOTAL CORPORATE DEBT |
| $ | 23,991 | |||||
(Cost: $23,900) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Commercial Paper (G) – 1.5% | ||||||||
E.I. du Pont de Nemours and Co., | ||||||||
1.440%, 10–25–17 | 10,000 | 9,990 | ||||||
GlaxoSmithKline LLC (GTD by GlaxoSmithKline plc), | ||||||||
1.181%, 10–6–17 | 5,109 | 5,108 | ||||||
Medtronic Global Holdings SCA: | ||||||||
1.252%, 10–3–17 | 12,000 | 11,998 | ||||||
1.530%, 10–16–17 | 10,000 | 9,993 | ||||||
River Fuel Funding Co. #3, Inc. (GTD by Bank of Nova Scotia), | ||||||||
1.300%, 10–31–17 | 11,000 | 10,988 | ||||||
Walgreens Boots Alliance, Inc.: | ||||||||
1.300%, 10–4–17 | 5,000 | 4,999 | ||||||
1.360%, 10–5–17 | 8,000 | 7,998 | ||||||
Wisconsin Gas LLC, | ||||||||
1.200%, 10–3–17 | 3,000 | 2,999 | ||||||
|
| |||||||
64,073 | ||||||||
|
|
34 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY SCIENCE AND TECHNOLOGY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Master Note – 0.1% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (H) | $ | 3,116 | $ | 3,116 | ||||
|
| |||||||
Municipal Obligations – 0.0% |
| |||||||
Elmhurst, IL, Adj Demand Rev Bonds, Joint Comsn on Accred of Hlthcare Org (GTD by JPMorgan Chase Bank N.A.) (BVAL plus 23 bps), | ||||||||
0.950%, 10–5–17 (H) | 1,950 | 1,950 | ||||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 69,139 | |||||
(Cost: $69,146) |
| |||||||
TOTAL INVESTMENT |
| $ | 4,199,552 | |||||
(Cost: $2,125,425) |
| |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1% |
| 3,917 | ||||||
NET ASSETS – 100.0% |
| $ | 4,203,469 |
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 $118,549 are held in collateralized accounts to cover potential obligations with respect to outstanding written options. |
(E) | Restricted securities. At September 30, 2017, the Fund owned the following restricted securities: |
Security | Acquisition Date(s) | Principal | Cost | Market Value | ||||||||||||||||
Marrone Bio Innovations, Inc., 8.000%, 08–20–20 | 8–20–15 | $ | 23,900 | $ | 23,900 | $ | 23,991 | |||||||||||||
Shares | ||||||||||||||||||||
Marrone Bio Innovations, Inc., expires 8–20–23 | 8–20–15 | 2,390 | $ | — | $ | — | ||||||||||||||
|
| |||||||||||||||||||
$ | 23,900 | $ | 23,991 | |||||||||||||||||
|
|
The total value of these securities represented 0.6% of net assets at September 30, 2017.
(F) | 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. |
(G) | Rate shown is the yield to maturity at September 30, 2017. |
(H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following written options were outstanding at September 30, 2017 (contracts and exercise prices unrounded):
Underlying Security | Counterparty, if OTC | Type | Number of Contracts | Notional Amount | Expiration Month | Exercise Price | Premium Received | Value | ||||||||||||||||||||||
Apple, Inc. | Citibank N.A. | Call | 7,692 | 769 | October 2017 | $ | 177.50 | $ | 223 | $ | (4 | ) | ||||||||||||||||||
|
|
2017 | SEMIANNUAL REPORT | 35 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY SCIENCE AND TECHNOLOGY FUND (in thousands) |
SEPTEMBER 30, 2017 (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, 2017. 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 | $ | 4,106,399 | $ | — | $ | — | ||||||
Warrants | — | — | — | |||||||||
Purchased Options | — | 23 | — | |||||||||
Corporate Debt Securities | — | 23,991 | — | |||||||||
Short-Term Securities | — | 69,139 | — | |||||||||
Total | $ | 4,106,399 | $ | 93,153 | $ | — | ||||||
Liabilities | ||||||||||||
Written Options | $ | — | $ | 4 | $ | — |
During the period ended September 30, 2017, securities totaling $7,830 were transferred from Level 2 to Level 1 due to increased availability of observable market data due to increased market activity or information for these securities. Transfers out of Level 2 represent the values as of the beginning of the reporting period.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
BVAL = Bloomberg Valuation Municipal AAA Benchmark
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
OTC = Over the Counter
REIT = Real Estate Investment Trust
Country Diversification | ||||
(as a % of net assets) |
| |||
United States | 83.7% | |||
China | 5.2% | |||
India | 4.0% | |||
Netherlands | 2.1% | |||
Bermuda | 1.7% | |||
Other Countries | 1.6% | |||
Other+ | 1.7% |
+ | Includes options, cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
36 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES | Ivy Funds |
AS OF SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands, except per share amounts) | Ivy Advantus Real Estate Securities Fund | Ivy Asset Strategy Fund(1) | Ivy Balanced Fund | Ivy Energy Fund | Ivy LaSalle Global Real Estate Fund | Ivy LaSalle Global Risk- Managed Real Estate Fund | Ivy Natural Resources Fund | |||||||||||||||||||||
ASSETS |
| |||||||||||||||||||||||||||
Investments in unaffiliated securities at value+ | $ | 564,771 | $ | 3,429,040 | $ | 1,927,419 | $ | 463,377 | $ | 83,275 | $ | 102,845 | $ | 615,781 | ||||||||||||||
Investments in affiliated securities at value+ | — | 18,140 | — | — | — | — | — | |||||||||||||||||||||
Bullion at value+ | — | 206,411 | — | — | — | — | — | |||||||||||||||||||||
Investments at Value | 564,771 | 3,653,591 | 1,927,419 | 463,377 | 83,275 | 102,845 | 615,781 | |||||||||||||||||||||
Cash | 1 | 1,031 | 162 | 1 | 1 | 1 | — | * | ||||||||||||||||||||
Cash denominated in foreign currencies at value+ | — | 306 | — | — | 124 | 314 | — | |||||||||||||||||||||
Investment securities sold receivable | 5,438 | — | 19,191 | — | 99 | 243 | — | |||||||||||||||||||||
Dividends and interest receivable | 1,589 | 10,395 | 5,307 | 241 | 397 | 549 | 465 | |||||||||||||||||||||
Capital shares sold receivable | 504 | 919 | 1,652 | 982 | 158 | 265 | 223 | |||||||||||||||||||||
Receivable from affiliates | 4 | 54 | — | — | 107 | 110 | 22 | |||||||||||||||||||||
Swap agreements, at value | — | 5,361 | — | — | — | — | — | |||||||||||||||||||||
Prepaid and other assets | 59 | 149 | 106 | 72 | 35 | 42 | 62 | |||||||||||||||||||||
Total Assets | 572,366 | 3,671,806 | 1,953,837 | 464,673 | 84,196 | 104,369 | 616,553 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Investment securities purchased payable | 2,080 | — | 1,491 | — | 121 | 225 | 4,687 | |||||||||||||||||||||
Capital shares redeemed payable | 997 | 9,775 | 4,730 | 1,113 | 114 | 312 | 1,032 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees payable | 80 | 1,217 | 77 | 13 | 1 | 2 | 556 | |||||||||||||||||||||
Distribution and service fees payable | 6 | 103 | 45 | 6 | — | * | 1 | 10 | ||||||||||||||||||||
Shareholder servicing payable | 140 | 1,313 | 433 | 132 | 9 | 22 | 314 | |||||||||||||||||||||
Investment management fee payable | 25 | 127 | 72 | 22 | 4 | 5 | 32 | |||||||||||||||||||||
Accounting services fee payable | 14 | 23 | 23 | 12 | 4 | 6 | 17 | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | — | — | — | 1,746 | |||||||||||||||||||||
Written options at value+ | — | 1,039 | — | — | — | — | — | |||||||||||||||||||||
Other liabilities | 14 | 363 | 42 | 13 | 8 | 12 | 16 | |||||||||||||||||||||
Total Liabilities | 3,356 | 13,960 | 6,913 | 1,311 | 261 | 585 | 8,410 | |||||||||||||||||||||
Total Net Assets | $ | 569,010 | $ | 3,657,846 | $ | 1,946,924 | $ | 463,362 | $ | 83,935 | $ | 103,784 | $ | 608,143 | ||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Capital paid in (shares authorized — unlimited) | $ | 380,930 | $ | 3,699,621 | $ | 1,641,850 | $ | 555,444 | $ | 81,114 | $ | 102,025 | $ | 2,746,339 | ||||||||||||||
Undistributed net investment income | 907 | 13,689 | 8,729 | 4,843 | 226 | (393 | ) | 680 | ||||||||||||||||||||
Accumulated net realized gain (loss) | 47,940 | (99,068 | ) | 86,363 | (130,108 | ) | (666 | ) | (3,146 | ) | (2,169,767 | ) | ||||||||||||||||
Net unrealized appreciation | 139,233 | 43,604 | 209,982 | 33,183 | 3,261 | 5,298 | 30,891 | |||||||||||||||||||||
Total Net Assets | $ | 569,010 | $ | 3,657,846 | $ | 1,946,924 | $ | 463,362 | $ | 83,935 | $ | 103,784 | $ | 608,143 | ||||||||||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
Class A | 8,801 | 51,426 | 24,686 | 9,960 | 895 | 1,787 | 20,157 | |||||||||||||||||||||
Class B | 112 | 5,065 | 2,651 | 250 | 24 | 61 | 376 | |||||||||||||||||||||
Class C | 507 | 61,641 | 23,871 | 5,786 | 86 | 600 | 6,537 | |||||||||||||||||||||
Class E | 142 | 1,551 | 8 | 10 | N/A | N/A | 309 | |||||||||||||||||||||
Class I | 7,271 | 27,820 | 24,252 | 16,975 | 2,332 | 6,260 | 10,972 | |||||||||||||||||||||
Class N | 122 | 476 | 474 | 918 | 4,467 | 27 | 616 | |||||||||||||||||||||
Class R | 48 | 2,530 | 539 | 2,006 | 47 | 384 | 1,606 | |||||||||||||||||||||
Class Y | 4,299 | 8,452 | 2,125 | 4,068 | 64 | 472 | 1,875 | |||||||||||||||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||||||||||||||||||
Class A | $26.67 | $23.50 | $24.83 | $11.50 | $10.57 | $10.81 | $14.53 | |||||||||||||||||||||
Class B | $25.74 | $22.03 | $24.58 | $10.46 | $10.51 | $10.74 | $12.27 | |||||||||||||||||||||
Class C | $26.12 | $22.19 | $24.66 | $10.67 | $10.50 | $10.74 | $12.13 | |||||||||||||||||||||
Class E | $26.67 | $23.61 | $24.95 | $11.81 | N/A | N/A | $14.91 | |||||||||||||||||||||
Class I | $26.83 | $23.87 | $24.82 | $11.95 | $10.61 | $10.84 | $15.16 | |||||||||||||||||||||
Class N | $26.86 | $23.97 | $24.86 | $12.01 | $10.61 | $10.84 | $15.22 | |||||||||||||||||||||
Class R | $26.64 | $23.18 | $24.79 | $11.40 | $10.55 | $10.77 | $14.35 | |||||||||||||||||||||
Class Y | $26.70 | $23.57 | $24.83 | $11.67 | $10.69 | $10.81 | $14.89 | |||||||||||||||||||||
+COST | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at cost | $ | 425,538 | $ | 2,807,570 | $ | 1,717,437 | $ | 430,194 | $ | 80,014 | $ | 97,545 | $ | 583,143 | ||||||||||||||
Investments in affiliated securities at cost | — | 616,742 | — | — | — | — | — | |||||||||||||||||||||
Bullion at cost | — | 191,012 | — | — | — | — | — | |||||||||||||||||||||
Cash denominated in foreign currencies at cost | — | 294 | — | — | 124 | 314 | — | |||||||||||||||||||||
Written options premiums received at cost | — | 1,195 | — | — | — | — | — |
* | 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.
2017 | SEMIANNUAL REPORT | 37 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES | Ivy Funds |
AS OF SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands, except per share amounts) | Ivy Science and Technology Fund | |||
ASSETS |
| |||
Investments in unaffiliated securities at value+ | $ | 3,747,756 | ||
Investments in affiliated securities at value+ | 451,796 | |||
Investments at Value | 4,199,552 | |||
Cash | 4,220 | |||
Investment securities sold receivable | 26,258 | |||
Dividends and interest receivable | 2,792 | |||
Capital shares sold receivable | 4,048 | |||
Receivable from affiliates | 25 | |||
Prepaid and other assets | 168 | |||
Total Assets | 4,237,063 | |||
LIABILITIES | ||||
Investment securities purchased payable | 12,284 | |||
Capital shares redeemed payable | 19,917 | |||
Independent Trustees and Chief Compliance Officer fees payable | 194 | |||
Distribution and service fees payable | 68 | |||
Shareholder servicing payable | 869 | |||
Investment management fee payable | 187 | |||
Accounting services fee payable | 23 | |||
Written options at value+ | 4 | |||
Other liabilities | 48 | |||
Total Liabilities | 33,594 | |||
Total Net Assets | $ | 4,203,469 | ||
NET ASSETS | ||||
Capital paid in (shares authorized — unlimited) | $ | 1,951,116 | ||
Distributions in excess of net investment income | (19,509 | ) | ||
Accumulated net realized gain | 197,516 | |||
Net unrealized appreciation | 2,074,346 | |||
Total Net Assets | $ | 4,203,469 | ||
CAPITAL SHARES OUTSTANDING: | ||||
Class A | 16,594 | |||
Class B | 815 | |||
Class C | 12,088 | |||
Class E | 453 | |||
Class I | 20,276 | |||
Class N | 1,358 | |||
Class R | 1,943 | |||
Class Y | 9,689 | |||
NET ASSET VALUE PER SHARE: | ||||
Class A | $65.70 | |||
Class B | $55.08 | |||
Class C | $57.07 | |||
Class E | $65.27 | |||
Class I | $71.86 | |||
Class N | $72.20 | |||
Class R | $64.12 | |||
Class Y | $69.06 | |||
+COST | ||||
Investments in unaffiliated securities at cost | $ | 1,846,946 | ||
Investments in affiliated securities at cost | 278,479 | |||
Written options premiums received at cost | 223 |
See Accompanying Notes to Financial Statements.
38 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF OPERATIONS | Ivy Funds |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands) | Ivy Advantus Real Estate Securities Fund | Ivy Asset Strategy Fund(1) | Ivy Balanced Fund | Ivy Energy Fund | ||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividends from unaffiliated securities | $ | 6,321 | $ | 29,344 | $ | 17,764 | $ | 7,762 | ||||||||
Foreign dividend withholding tax | — | (1,178 | ) | (313 | ) | (46 | ) | |||||||||
Interest and amortization from unaffiliated securities | 33 | 13,901 | 11,491 | 33 | ||||||||||||
Total Investment Income | 6,354 | 42,067 | 28,942 | 7,749 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment management fee | 2,731 | 12,228 | 7,018 | 2,002 | ||||||||||||
Distribution and service fees: | ||||||||||||||||
Class A | 314 | 1,565 | 812 | 156 | ||||||||||||
Class B | 16 | 621 | 353 | 15 | ||||||||||||
Class C | 72 | 7,360 | 3,224 | 340 | ||||||||||||
Class E | 5 | 46 | — | * | — | * | ||||||||||
Class R | 3 | 154 | 34 | 56 | ||||||||||||
Class Y | 155 | 267 | 76 | 56 | ||||||||||||
Shareholder servicing: | ||||||||||||||||
Class A | 360 | 1,201 | 534 | 184 | ||||||||||||
Class B | 8 | 127 | 55 | 7 | ||||||||||||
Class C | 22 | 1,233 | 386 | 78 | ||||||||||||
Class E | 11 | 67 | — | * | — | * | ||||||||||
Class I | 185 | 553 | 529 | 169 | ||||||||||||
Class N | — | * | 1 | 1 | 1 | |||||||||||
Class R | 2 | 79 | 18 | 29 | ||||||||||||
Class Y | 92 | 156 | 48 | 37 | ||||||||||||
Registration fees | 62 | 64 | 85 | 70 | ||||||||||||
Custodian fees | 8 | 207 | 11 | 7 | ||||||||||||
Independent Trustees and Chief Compliance Officer fees | 17 | 159 | 53 | 12 | ||||||||||||
Accounting services fee | 87 | 138 | 138 | 74 | ||||||||||||
Professional fees | 24 | 1,532 | 20 | 18 | ||||||||||||
Other | 31 | 259 | 114 | 41 | ||||||||||||
Total Expenses | 4,205 | 28,017 | 13,509 | 3,352 | ||||||||||||
Less: | ||||||||||||||||
Expenses in excess of limit | (308 | ) | (54 | ) | — | — | ||||||||||
Total Net Expenses | 3,897 | 27,963 | 13,509 | 3,352 | ||||||||||||
Net Investment Income | 2,457 | 14,104 | 15,433 | 4,397 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments in unaffiliated securities | 30,696 | 120,303 | 59,785 | (19,523 | ) | |||||||||||
Investments in affiliated securities | — | (81,330 | ) | — | — | |||||||||||
Written options | — | 723 | — | — | ||||||||||||
Swap agreements | — | 10,295 | — | — | ||||||||||||
Foreign currency exchange transactions | — | 431 | — | 4 | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments in unaffiliated securities | (14,369 | ) | 137,691 | (15,855 | ) | (62,138 | ) | |||||||||
Investments in affiliated securities | — | 70,369 | — | — | ||||||||||||
Written options | — | 156 | — | — | ||||||||||||
Swap agreements | — | (289 | ) | — | — | |||||||||||
Foreign currency exchange transactions | — | 50 | — | — | ||||||||||||
Net Realized and Unrealized Gain (Loss) | 16,327 | 258,399 | 43,930 | (81,657 | ) | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 18,784 | $ | 272,503 | $ | 59,363 | $ | (77,260 | ) |
* | Not shown due to rounding. |
(1) | Consolidated Statement of Operations (See Note 6 in Notes to Financial Statements). |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 39 |
Table of Contents
STATEMENTS OF OPERATIONS | Ivy Funds |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands) | Ivy LaSalle Global Real Estate Fund | Ivy LaSalle Global Risk- Managed Real Estate Fund | Ivy Natural Resources Fund | Ivy Science and Technology Fund | ||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated securities | $ | 883 | $ | 1,544 | $ | 4,462 | $ | 11,455 | ||||||||
Foreign dividend withholding tax | (46 | ) | (84 | ) | (78 | ) | (76 | ) | ||||||||
Interest and amortization from unaffiliated securities | 2 | 1 | 48 | 413 | ||||||||||||
Interest and amortization from affiliated securities | — | — | — | 948 | ||||||||||||
Total Investment Income | 839 | 1,461 | 4,432 | 12,740 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment management fee | 319 | 521 | 3,030 | 16,487 | ||||||||||||
Distribution and service fees: | ||||||||||||||||
Class A | 13 | 30 | 375 | 1,317 | ||||||||||||
Class B | 1 | 3 | 27 | 229 | ||||||||||||
Class C | 5 | 36 | 426 | 3,417 | ||||||||||||
Class E | N/A | N/A | 6 | 34 | ||||||||||||
Class R | 1 | 8 | 58 | 291 | ||||||||||||
Class Y | 1 | 7 | 35 | 816 | ||||||||||||
Shareholder servicing: | ||||||||||||||||
Class A | 17 | 34 | 679 | 851 | ||||||||||||
Class B | — | * | 1 | 25 | 43 | |||||||||||
Class C | 1 | 6 | 146 | 482 | ||||||||||||
Class E | N/A | N/A | 21 | 55 | ||||||||||||
Class I | 30 | 62 | 154 | 1,112 | ||||||||||||
Class N | 1 | — | * | — | * | 8 | ||||||||||
Class R | 1 | 4 | 31 | 148 | ||||||||||||
Class Y | 1 | 4 | 23 | 503 | ||||||||||||
Registration fees | 40 | 49 | 59 | 77 | ||||||||||||
Custodian fees | 13 | 20 | 8 | 27 | ||||||||||||
Independent Trustees and Chief Compliance Officer fees | 1 | 3 | 48 | 100 | ||||||||||||
Accounting services fee | 22 | 34 | 86 | 138 | ||||||||||||
Professional fees | 24 | 22 | 32 | 38 | ||||||||||||
Other | 8 | 12 | 37 | 147 | ||||||||||||
Total Expenses | 499 | 856 | 5,306 | 26,320 | ||||||||||||
Less: | ||||||||||||||||
Expenses in excess of limit | (107 | ) | (110 | ) | (22 | ) | (25 | ) | ||||||||
Total Net Expenses | 392 | 746 | 5,284 | 26,295 | ||||||||||||
Net Investment Income (Loss) | 447 | 715 | (852 | ) | (13,555 | ) | ||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments in unaffiliated securities | 111 | 236 | (2,530 | ) | 141,985 | |||||||||||
Investments in affiliated securities | — | — | — | (49,962 | ) | |||||||||||
Written options | — | — | — | 957 | ||||||||||||
Forward foreign currency contracts | — | — | (4,004 | ) | — | |||||||||||
Foreign currency exchange transactions | (26 | ) | 37 | 29 | (52 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments in unaffiliated securities | 1,658 | 171 | (6,870 | ) | 376,501 | |||||||||||
Investments in affiliated securities | — | — | — | 146,940 | ||||||||||||
Written options | — | — | — | 219 | ||||||||||||
Forward foreign currency contracts | — | — | (1,031 | ) | — | |||||||||||
Foreign currency exchange transactions | — | * | (2 | ) | — | * | — | |||||||||
Net Realized and Unrealized Gain (Loss) | 1,743 | 442 | (14,406 | ) | 616,588 | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 2,190 | $ | 1,157 | $ | (15,258 | ) | $ | 603,033 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
40 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | Ivy Funds |
Ivy Advantus Real Estate Securities Fund | Ivy Asset Strategy Fund(1) | Ivy Balanced Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 2,457 | $ | 5,018 | $ | 14,104 | $ | (17,989 | ) | $ | 15,433 | $ | 31,540 | |||||||||||
Net realized gain on investments | 30,696 | 73,925 | 50,422 | 68,071 | 59,785 | 91,052 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (14,369 | ) | (79,313 | ) | 207,977 | 205,383 | (15,855 | ) | 81,715 | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 18,784 | (370 | ) | 272,503 | 255,465 | 59,363 | 204,307 | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (452 | ) | (4,394 | ) | — | — | (6,052 | ) | (10,862 | ) | ||||||||||||||
Class B | — | (20 | ) | — | — | (410 | ) | (514 | ) | |||||||||||||||
Class C | — | (122 | ) | — | — | (3,835 | ) | (5,295 | ) | |||||||||||||||
Class E | (7 | ) | (47 | ) | — | — | (2 | ) | (2 | ) | ||||||||||||||
Class I | (885 | ) | (2,195 | ) | — | — | (6,787 | ) | (10,032 | ) | ||||||||||||||
Class N | (21 | ) | (48 | ) | — | — | (131 | ) | (150 | ) | ||||||||||||||
Class R | (2 | ) | (18 | ) | — | — | (107 | ) | (131 | ) | ||||||||||||||
Class Y | (330 | ) | (1,998 | ) | — | — | (516 | ) | (1,212 | ) | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | (22,755 | ) | — | — | — | (8,911 | ) | ||||||||||||||||
Class B | — | (330 | ) | — | — | — | (961 | ) | ||||||||||||||||
Class C | — | (1,448 | ) | — | — | — | (9,399 | ) | ||||||||||||||||
Class E | — | (322 | ) | — | — | — | (2 | ) | ||||||||||||||||
Class I | — | (17,058 | ) | — | — | — | (8,409 | ) | ||||||||||||||||
Class N | — | (226 | ) | — | — | — | (104 | ) | ||||||||||||||||
Class R | — | (137 | ) | — | — | — | (158 | ) | ||||||||||||||||
Class Y | — | (11,574 | ) | — | — | — | (1,021 | ) | ||||||||||||||||
Total Distributions to Shareholders | (1,697 | ) | (62,692 | ) | — | — | (17,840 | ) | (57,163 | ) | ||||||||||||||
Capital Share Transactions | (72,584 | ) | (17,489 | ) | (995,174 | ) | (6,172,107 | ) | (333,140 | ) | (706,812 | ) | ||||||||||||
Net Decrease in Net Assets | (55,497 | ) | (80,551 | ) | (722,671 | ) | (5,916,642 | ) | (291,617 | ) | (559,668 | ) | ||||||||||||
Net Assets, Beginning of Period | 624,507 | 705,058 | 4,380,517 | 10,297,159 | 2,238,541 | 2,798,209 | ||||||||||||||||||
Net Assets, End of Period | $ | 569,010 | $ | 624,507 | $ | 3,657,846 | $ | 4,380,517 | $ | 1,946,924 | $ | 2,238,541 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 907 | $ | 147 | $ | 13,689 | $ | (1,982 | ) | $ | 8,729 | $ | 11,136 |
(1)Consolidated Statements of Changes in Net Assets (See Note 6 in Notes to Financial Statements).
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 41 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | Ivy Funds |
Ivy Energy Fund | Ivy LaSalle Global Real Estate Fund | Ivy LaSalle Global Risk- Managed Real Estate Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 4,397 | $ | (3,466 | ) | $ | 447 | $ | 184 | $ | 715 | $ | 858 | |||||||||||
Net realized gain (loss) on investments | (19,519 | ) | (26,919 | ) | 85 | 659 | 273 | 423 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | (62,138 | ) | 129,810 | 1,658 | (1,071 | ) | 169 | (3,637 | ) | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from | (77,260 | ) | 99,425 | 2,190 | (228 | ) | 1,157 | (2,356 | ) | |||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | — | — | — | (532 | ) | — | (2,282 | ) | ||||||||||||||||
Class B | — | — | — | (5 | ) | — | (26 | ) | ||||||||||||||||
Class C | — | — | — | (13 | ) | — | (157 | ) | ||||||||||||||||
Class E | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I | — | — | — | (200 | ) | — | (1,014 | ) | ||||||||||||||||
Class N | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class R | — | — | — | (9 | ) | — | (68 | ) | ||||||||||||||||
Class Y | — | — | — | (16 | ) | — | (142 | ) | ||||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | — | — | (500 | ) | |||||||||||||||||
Class B | — | — | — | — | — | (11 | ) | |||||||||||||||||
Class C | — | — | — | — | — | (91 | ) | |||||||||||||||||
Class E | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I | — | — | — | — | — | (616 | ) | |||||||||||||||||
Class N | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class R | — | — | — | — | — | (26 | ) | |||||||||||||||||
Class Y | — | — | — | — | — | (56 | ) | |||||||||||||||||
Total Distributions to Shareholders | — | — | — | (775 | ) | — | (4,989 | ) | ||||||||||||||||
Capital Share Transactions | (23,984 | ) | 39,978 | 48,120 | 444 | (11,750 | ) | 35,061 | ||||||||||||||||
Net Increase (Decrease) in Net Assets | (101,244 | ) | 139,403 | 50,310 | (559 | ) | (10,593 | ) | 27,716 | |||||||||||||||
Net Assets, Beginning of Period | 564,606 | 425,203 | 33,625 | 34,184 | 114,377 | 86,661 | ||||||||||||||||||
Net Assets, End of Period | $ | 463,362 | $ | 564,606 | $ | 83,935 | $ | 33,625 | $ | 103,784 | $ | 114,377 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 4,843 | $ | 442 | $ | 226 | $ | (195 | ) | $ | (393 | ) | $ | (1,145 | ) |
See Accompanying Notes to Financial Statements.
42 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | Ivy Funds |
Ivy Natural Resources Fund | Ivy Science and Technology Fund | |||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment loss | $ | (852 | ) | $ | (1,251 | ) | $ | (13,555 | ) | $ | (28,943 | ) | ||||
Net realized gain (loss) on investments | (6,505 | ) | 36,740 | 92,928 | 234,785 | |||||||||||
Net change in unrealized appreciation (depreciation) | (7,901 | ) | 87,745 | 523,660 | 616,772 | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (15,258 | ) | 123,234 | 603,033 | 822,614 | |||||||||||
Distributions to Shareholders From: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | — | (224 | ) | — | — | |||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class E | — | (22 | ) | — | — | |||||||||||
Class I | — | (1,017 | ) | — | — | |||||||||||
Class N | — | (73 | ) | — | — | |||||||||||
Class R | — | — | — | — | ||||||||||||
Class Y | — | (106 | ) | — | — | |||||||||||
Net realized gains: | ||||||||||||||||
Class A | — | — | — | — | ||||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class E | — | — | — | — | ||||||||||||
Class I | — | — | — | — | ||||||||||||
Class N | — | — | — | — | ||||||||||||
Class R | — | — | — | — | ||||||||||||
Class Y | — | — | — | — | ||||||||||||
Total Distributions to Shareholders | — | (1,442 | ) | — | — | |||||||||||
Capital Share Transactions | (74,079 | ) | (134,415 | ) | (353,186 | ) | (1,858,104 | ) | ||||||||
Net Increase (Decrease) in Net Assets | (89,337 | ) | (12,623 | ) | 249,847 | (1,035,490 | ) | |||||||||
Net Assets, Beginning of Period | 697,480 | 710,103 | 3,953,622 | 4,989,112 | ||||||||||||
Net Assets, End of Period | $ | 608,143 | $ | 697,480 | $ | 4,203,469 | $ | 3,953,622 | ||||||||
Undistributed (distributions in excess of) net investment income | $ | 680 | $ | 1,503 | $ | (19,509 | ) | $ | (5,902 | ) |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 43 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY ADVANTUS REAL ESTATE SECURITIES FUND
| 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 9-30-2017 (unaudited) | $ | 25.94 | $ | 0.09 | $ | 0.69 | $ | 0.78 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | ||||||||||||
Year ended 3-31-2017 | 28.60 | 0.24 | (0.26 | ) | (0.02 | ) | (0.35 | ) | (2.29 | ) | (2.64 | ) | ||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 25.11 | (0.04 | ) | 0.67 | 0.63 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 27.80 | (0.03 | ) | (0.23 | ) | (0.26 | ) | (0.14 | ) | (2.29 | ) | (2.43 | ) | |||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 25.45 | (0.01 | ) | 0.68 | 0.67 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 28.15 | (0.01 | ) | (0.21 | ) | (0.22 | ) | (0.19 | ) | (2.29 | ) | (2.48 | ) | |||||||||||||||
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 | ) | |||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 25.94 | 0.09 | 0.69 | 0.78 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 28.60 | 0.12 | (0.15 | ) | (0.03 | ) | (0.34 | ) | (2.29 | ) | (2.63 | ) | ||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.11 | 0.14 | 0.70 | 0.84 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 28.75 | 0.13 | (0.05 | ) | 0.08 | (0.43 | ) | (2.29 | ) | (2.72 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.15 | 0.17 | 0.69 | 0.86 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 28.78 | 0.29 | (0.16 | ) | 0.13 | (0.47 | ) | (2.29 | ) | (2.76 | ) | |||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 25.92 | 0.05 | 0.70 | 0.75 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 28.59 | 0.09 | (0.17 | ) | (0.08 | ) | (0.30 | ) | (2.29 | ) | (2.59 | ) | ||||||||||||||||
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 | ) | |||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 25.97 | 0.11 | 0.69 | 0.80 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 28.62 | 0.24 | (0.21 | ) | 0.03 | (0.39 | ) | (2.29 | ) | (2.68 | ) | |||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
(7) | Porfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
.
44 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 26.67 | 3.00 | % | $ | 235 | 1.41 | %(4) | 0.68 | %(4) | 1.51 | %(4) | 0.58 | %(4) | 32 | % | ||||||||||||||||
Year ended 3-31-2017 | 25.94 | 0.02 | 261 | 1.43 | 0.87 | 1.53 | 0.77 | 77 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 25.74 | 2.51 | 3 | 2.37 | (4) | -0.29 | (4) | 2.47 | (4) | -0.39 | (4) | 32 | ||||||||||||||||||||
Year ended 3-31-2017 | 25.11 | -0.88 | 3 | 2.34 | -0.10 | 2.44 | -0.20 | 77 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.12 | 2.63 | 13 | 2.19 | (4) | -0.11 | (4) | 2.29 | (4) | -0.21 | (4) | 32 | ||||||||||||||||||||
Year ended 3-31-2017 | 25.45 | -0.72 | 15 | 2.16 | -0.02 | 2.26 | -0.12 | 77 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.67 | 3.00 | 4 | 1.43 | (4) | 0.66 | (4) | 1.76 | (4) | 0.33 | (4) | 32 | ||||||||||||||||||||
Year ended 3-31-2017 | 25.94 | 0.00 | 4 | 1.45 | 0.44 | 1.79 | 0.10 | 77 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.83 | 3.20 | 195 | 1.06 | (4) | 1.04 | (4) | 1.16 | (4) | 0.94 | (4) | 32 | ||||||||||||||||||||
Year ended 3-31-2017 | 26.11 | 0.39 | 208 | 1.05 | 0.45 | 1.15 | 0.35 | 77 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.86 | 3.29 | 3 | 0.88 | (4) | 1.24 | (4) | 0.98 | (4) | 1.14 | (4) | 32 | ||||||||||||||||||||
Year ended 3-31-2017 | 26.15 | 0.56 | 3 | 0.87 | 1.04 | 0.97 | 0.94 | 77 | ||||||||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.64 | 2.87 | 1 | 1.65 | (4) | 0.39 | (4) | 1.75 | (4) | 0.29 | (4) | 32 | ||||||||||||||||||||
Year ended 3-31-2017 | 25.92 | -0.18 | 2 | 1.64 | 0.33 | 1.74 | 0.23 | 77 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.70 | 3.09 | 115 | 1.27 | (4) | 0.82 | (4) | 1.37 | (4) | 0.72 | (4) | 32 | ||||||||||||||||||||
Year ended 3-31-2017 | 25.97 | 0.19 | 129 | 1.26 | 0.86 | 1.36 | 0.76 | 77 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 45 |
Table of Contents
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 | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 21.86 | $ | 0.11 | $ | 1.53 | $ | 1.64 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 20.83 | 0.00 | * | 1.03 | 1.03 | — | — | — | ||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.56 | 0.02 | 1.45 | 1.47 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 19.73 | (0.16 | ) | 0.99 | 0.83 | — | — | — | ||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.71 | 0.03 | 1.45 | 1.48 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 19.87 | (0.15 | ) | 0.99 | 0.84 | — | — | — | ||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.95 | 0.13 | 1.53 | 1.66 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 20.89 | (0.03 | ) | 1.09 | 1.06 | — | — | — | ||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.16 | 0.14 | 1.57 | 1.71 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 21.06 | 0.05 | 1.05 | 1.10 | — | — | — | |||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.24 | 0.16 | 1.57 | 1.73 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 21.10 | 0.02 | 1.12 | 1.14 | — | — | — | |||||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.59 | 0.08 | 1.51 | 1.59 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 20.63 | (0.10 | ) | 1.06 | 0.96 | — | — | — | ||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.92 | 0.12 | 1.53 | 1.65 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 20.88 | 0.00 | * | 1.04 | 1.04 | — | — | — | ||||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
.
46 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 23.50 | 7.50 | % | $ | 1,209 | 1.19 | %(4) | 0.97 | %(4) | — | % | — | % | 10 | % | ||||||||||||||||
Year ended 3-31-2017 | 21.86 | 4.95 | 1,315 | 1.12 | -0.02 | — | — | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.03 | 7.15 | 112 | 1.95 | (4) | 0.22 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2017 | 20.56 | 4.21 | 141 | 1.83 | -0.81 | — | — | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.19 | 7.15 | 1,367 | 1.91 | (4) | 0.25 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2017 | 20.71 | 4.23 | 1,620 | 1.83 | -0.75 | — | — | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.61 | 7.56 | 37 | 1.03 | (4) | 1.11 | (4) | 1.32 | (4) | 0.82 | (4) | 10 | ||||||||||||||||||||
Year ended 3-31-2017 | 21.95 | 5.07 | 38 | 1.03 | -0.13 | 1.28 | -0.38 | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.87 | 7.72 | 664 | 0.89 | (4) | 1.23 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2017 | 22.16 | 5.22 | 952 | 0.85 | 0.23 | — | — | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.97 | 7.78 | 11 | 0.76 | (4) | 1.40 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2017 | 22.24 | 5.40 | 13 | 0.69 | 0.07 | — | — | 51 | ||||||||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.18 | 7.37 | 59 | 1.50 | (4) | 0.68 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2017 | 21.59 | 4.65 | 65 | 1.43 | -0.48 | — | — | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.57 | 7.53 | 199 | 1.14 | (4) | 1.02 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2017 | 21.92 | 4.98 | 237 | 1.08 | 0.00 | — | — | 51 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 47 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY BALANCED FUND
Net Asset | 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 9-30-2017 (unaudited) | $ | 24.33 | $ | 0.20 | $ | 0.53 | $ | 0.73 | $ | (0.23 | ) | $ | — | $ | (0.23 | ) | ||||||||||||
Year ended 3-31-2017 | 22.99 | 0.33 | 1.59 | 1.92 | (0.30 | ) | (0.28 | ) | (0.58 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(4) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.09 | 0.11 | 0.52 | 0.63 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 22.78 | 0.15 | 1.59 | 1.74 | (0.15 | ) | (0.28 | ) | (0.43 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.17 | 0.11 | 0.53 | 0.64 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 22.85 | 0.16 | 1.59 | 1.75 | (0.15 | ) | (0.28 | ) | (0.43 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.45 | 0.22 | 0.54 | 0.76 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 23.09 | 0.37 | 1.61 | 1.98 | (0.34 | ) | (0.28 | ) | (0.62 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.33 | 0.23 | 0.53 | 0.76 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 22.98 | 0.39 | 1.60 | 1.99 | (0.36 | ) | (0.28 | ) | (0.64 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.37 | 0.25 | 0.53 | 0.78 | (0.29 | ) | — | (0.29 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 23.01 | 0.42 | 1.61 | 2.03 | (0.39 | ) | (0.28 | ) | (0.67 | ) | ||||||||||||||||||
Year ended 3-31-2016 | 25.66 | 0.39 | (1.52 | ) | (1.13 | ) | (0.34 | ) | (1.18 | ) | (1.52 | ) | ||||||||||||||||
Year ended 3-31-2015(6) | 24.66 | 0.22 | 1.72 | 1.94 | (0.20 | ) | (0.74 | ) | (0.94 | ) | ||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.30 | 0.16 | 0.52 | 0.68 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 22.96 | 0.25 | 1.60 | 1.85 | (0.23 | ) | (0.28 | ) | (0.51 | ) | ||||||||||||||||||
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(7) | 20.16 | 0.00 | 1.43 | 1.43 | — | — | — | |||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.34 | 0.20 | 0.52 | 0.72 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 22.99 | 0.35 | 1.59 | 1.94 | (0.31 | ) | (0.28 | ) | (0.59 | ) | ||||||||||||||||||
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 | ) |
* | 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) | 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 shares is closed to investment. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
(7) | For the period from December 31, 2012 (commencement of operations of the class) through March 31, 2013. |
(8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
(9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
.
48 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets | Ratio of Net | Portfolio Turnover Rate | |||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 24.83 | 3.03 | % | $ | 613 | 1.13 | %(3) | 1.64 | %(3) | 14 | % | ||||||||||||
Year ended 3-31-2017 | 24.33 | 8.44 | 688 | 1.11 | 1.40 | 47 | ||||||||||||||||||
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 | ||||||||||||||||||
Class B Shares(4) |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.58 | 2.63 | 65 | 1.86 | (3) | 0.90 | (3) | 14 | ||||||||||||||||
Year ended 3-31-2017 | 24.09 | 7.68 | 77 | 1.84 | 0.66 | 47 | ||||||||||||||||||
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 | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.66 | 2.64 | 589 | 1.83 | (3) | 0.94 | (3) | 14 | ||||||||||||||||
Year ended 3-31-2017 | 24.17 | 7.72 | 707 | 1.80 | 0.69 | 47 | ||||||||||||||||||
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 | ||||||||||||||||||
Class E Shares(5) |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.95 | 3.10 | — | * | 0.97 | (3) | 1.79 | (3) | 14 | |||||||||||||||
Year ended 3-31-2017 | 24.45 | 8.65 | — | * | 0.95 | 1.54 | 47 | |||||||||||||||||
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 | |||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.82 | 3.13 | 602 | 0.88 | (3) | 1.89 | (3) | 14 | ||||||||||||||||
Year ended 3-31-2017 | 24.33 | 8.75 | 673 | 0.85 | 1.63 | 47 | ||||||||||||||||||
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 | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.86 | 3.20 | 12 | 0.72 | (3) | 2.04 | (3) | 14 | ||||||||||||||||
Year ended 3-31-2017 | 24.37 | 8.92 | 10 | 0.70 | 1.77 | 47 | ||||||||||||||||||
Year ended 3-31-2016 | 23.01 | -4.57 | 5 | 0.69 | 1.60 | 56 | ||||||||||||||||||
Year ended 3-31-2015(6) | 25.66 | 8.01 | 4 | 0.70 | (3) | 1.29 | (3) | 33 | (8) | |||||||||||||||
Class R Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.79 | 2.82 | 13 | 1.46 | (3) | 1.30 | (3) | 14 | ||||||||||||||||
Year ended 3-31-2017 | 24.30 | 8.12 | 14 | 1.44 | 1.04 | 47 | ||||||||||||||||||
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(7) | 21.59 | 7.09 | — | * | 1.48 | (3) | 0.02 | (3) | 35 | (9) | ||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.83 | 2.98 | 53 | 1.12 | (3) | 1.66 | (3) | 14 | ||||||||||||||||
Year ended 3-31-2017 | 24.34 | 8.50 | 70 | 1.10 | 1.47 | 47 | ||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 49 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY ENERGY FUND
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 13.30 | $ | 0.10 | $ | (1.90 | ) | $ | (1.80 | ) | $ | — | $ | — | $ | — | ||||||||||||
Year ended 3-31-2017 | 10.75 | (0.08 | ) | 2.63 | 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 | — | — | — | ||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.15 | 0.04 | (1.73 | ) | (1.69 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 9.90 | (0.18 | ) | 2.43 | 2.25 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.39 | 0.06 | (1.78 | ) | (1.72 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 10.08 | (0.16 | ) | 2.47 | 2.31 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class E Shares(6) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.63 | 0.12 | (1.94 | ) | (1.82 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 10.99 | (0.05 | ) | 2.69 | 2.64 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.80 | 0.13 | (1.98 | ) | (1.85 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 11.11 | (0.05 | ) | 2.74 | 2.69 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.86 | 0.14 | (1.99 | ) | (1.85 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 11.14 | (0.02 | ) | 2.74 | 2.72 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2016 | 14.46 | 0.04 | (3.36 | ) | (3.32 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2015(7) | 18.03 | 0.03 | (3.60 | ) | (3.57 | ) | — | — | — | |||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.20 | 0.09 | (1.89 | ) | (1.80 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 10.69 | (0.12 | ) | 2.63 | 2.51 | — | — | — | ||||||||||||||||||||
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(8) | 12.26 | (0.03 | ) | 1.51 | 1.48 | — | — | — | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.49 | 0.11 | (1.93 | ) | (1.82 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 10.89 | (0.07 | ) | 2.67 | 2.60 | — | — | — | ||||||||||||||||||||
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 | — | — | — |
* | 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) | Annualized. |
(4) | 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 July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
(8) | For the period from December 12, 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, 2015. |
(10) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
.
50 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(4) | Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(4) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 11.50 | -13.53 | % | $ | 115 | 1.49 | %(3) | 1.77 | %(3) | — | % | — | % | 4 | % | ||||||||||||||||
Year ended 3-31-2017 | 13.30 | 23.72 | 158 | 1.41 | -0.59 | — | — | 39 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.46 | -13.91 | 3 | 2.42 | (3) | 0.87 | (3) | — | — | 4 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.15 | 22.73 | 4 | 2.29 | -1.49 | — | — | 39 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.67 | -13.88 | 62 | 2.17 | (3) | 1.09 | (3) | — | — | 4 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.39 | 22.92 | 87 | 2.11 | -1.31 | — | — | 39 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares(6) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.81 | -13.35 | — | * | 1.20 | (3) | 2.07 | (3) | — | — | 4 | |||||||||||||||||||||
Year ended 3-31-2017 | 13.63 | 24.02 | — | * | 1.19 | -0.40 | — | — | 39 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.95 | -13.41 | 202 | 1.11 | (3) | 2.18 | (3) | — | — | 4 | ||||||||||||||||||||||
Year ended 3-31-2017 | 13.80 | 24.21 | 225 | 1.08 | -0.35 | — | — | 39 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.01 | -13.35 | 11 | 0.95 | (3) | 2.38 | (3) | — | — | 4 | ||||||||||||||||||||||
Year ended 3-31-2017 | 13.86 | 24.42 | 12 | 0.93 | -0.18 | — | — | 39 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 11.14 | -22.96 | 5 | 0.95 | 0.35 | — | — | 31 | ||||||||||||||||||||||||
Year ended 3-31-2015(7) | 14.46 | -19.80 | 2 | 0.93 | (3) | 0.34 | (3) | — | — | 22 | (9) | |||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.40 | -13.64 | 23 | 1.71 | (3) | 1.60 | (3) | — | — | 4 | ||||||||||||||||||||||
Year ended 3-31-2017 | 13.20 | 23.48 | 26 | 1.67 | -0.89 | — | — | 39 | ||||||||||||||||||||||||
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(8) | 13.74 | 12.07 | — | * | 1.73 | (3) | -0.91 | (3) | — | 30 | (10) | |||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.67 | -13.49 | 47 | 1.35 | (3) | 1.96 | (3) | — | — | 4 | ||||||||||||||||||||||
Year ended 3-31-2017 | 13.49 | 23.87 | 53 | 1.34 | -0.54 | — | — | 39 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 51 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY LASALLE GLOBAL REAL ESTATE FUND
Net Asset | 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 9-30-2017 (unaudited) | $ | 10.28 | $ | 0.07 | $ | 0.22 | $ | 0.29 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 10.58 | 0.09 | (0.14 | ) | (0.05 | ) | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||
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 9-30-2017 (unaudited) | 10.24 | 0.03 | 0.24 | 0.27 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 10.56 | (0.04 | ) | (0.12 | ) | (0.16 | ) | (0.16 | ) | — | (0.16 | ) | ||||||||||||||||
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 9-30-2017 (unaudited) | 10.24 | �� | 0.02 | 0.24 | 0.26 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 10.55 | (0.06 | ) | (0.11 | ) | (0.17 | ) | (0.14 | ) | — | (0.14 | ) | ||||||||||||||||
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 9-30-2017 (unaudited) | 10.29 | 0.10 | 0.22 | 0.32 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 10.57 | 0.03 | (0.07 | ) | (0.04 | ) | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||
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 N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 10.42 | 0.01 | 0.18 | 0.19 | — | — | — | |||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.27 | 0.05 | 0.23 | 0.28 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 10.57 | 0.00 | * | (0.11 | ) | (0.11 | ) | (0.19 | ) | — | (0.19 | ) | ||||||||||||||||
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 9-30-2017 (unaudited) | 10.39 | 0.07 | 0.23 | 0.30 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 10.64 | 0.07 | (0.07 | ) | 0.00 | * | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||
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 or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized. |
(3) | Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
(8) | Ratio of expenses to average net assets excluding offering cost was 2.40%. |
(9) | Ratio of expenses to average net assets excluding offering cost was 2.39%. |
(10) | Ratio of expenses to average net assets excluding offering cost was 1.43%. |
(11) | Ratio of expenses to average net assets excluding offering cost was 1.99%. |
.
52 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 10.57 | 2.82 | % | $ | 9 | 1.51 | %(4) | 1.25 | %(4) | 1.77 | %(4) | 0.99 | %(4) | 23 | % | ||||||||||||||||
Year ended 3-31-2017 | 10.28 | -0.45 | 12 | 1.51 | 0.91 | 2.08 | 0.34 | 49 | ||||||||||||||||||||||||
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(6) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.51 | 2.64 | — | * | 2.21 | (4) | 0.59 | (4) | 2.36 | (4) | 0.44 | (4) | 23 | |||||||||||||||||||
Year ended 3-31-2017 | 10.24 | -1.52 | — | * | 2.54 | -0.43 | 2.60 | -0.49 | 49 | |||||||||||||||||||||||
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 | (8) | -0.02 | 3.14 | -0.48 | 36 | ||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.50 | 2.54 | 1 | 2.32 | (4) | 0.47 | (4) | 2.47 | (4) | 0.32 | (4) | 23 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.24 | -1.62 | 1 | 2.66 | -0.57 | 2.72 | -0.63 | 49 | ||||||||||||||||||||||||
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 | (9) | — | 3.12 | -0.45 | 36 | |||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.61 | 3.11 | 25 | 1.05 | (4) | 1.85 | (4) | 1.39 | (4) | 1.51 | (4) | 23 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.29 | -0.39 | 20 | 1.50 | 0.25 | 1.61 | 0.14 | 49 | ||||||||||||||||||||||||
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 | (10) | 0.94 | 2.16 | 0.49 | 36 | |||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 10.61 | 1.82 | 48 | 1.05 | (4) | 0.49 | (4) | 1.37 | (4) | 0.17 | (4) | 23 | (7) | |||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.55 | 2.73 | — | * | 1.81 | (4) | 0.99 | (4) | 1.96 | (4) | 0.84 | (4) | 23 | |||||||||||||||||||
Year ended 3-31-2017 | 10.27 | -1.01 | — | * | 2.13 | -0.05 | 2.20 | -0.12 | 49 | |||||||||||||||||||||||
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 | (11) | 0.38 | 2.73 | -0.08 | 36 | ||||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.69 | 2.89 | 1 | 1.45 | (4) | 1.35 | (4) | 1.60 | (4) | 1.20 | (4) | 23 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.39 | 0.03 | 1 | 1.52 | 0.70 | 1.87 | 0.35 | 49 | ||||||||||||||||||||||||
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.
2017 | SEMIANNUAL REPORT | 53 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY LASALLE GLOBAL-RISK MANAGED REAL ESTATE FUND
Net Asset | 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 9-30-2017 (unaudited) | $ | 10.70 | $ | 0.05 | $ | 0.06 | $ | 0.11 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 11.39 | 0.12 | (0.32 | ) | (0.20 | ) | (0.37 | ) | (0.12 | ) | (0.49 | ) | ||||||||||||||||
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 9-30-2017 (unaudited) | 10.68 | 0.02 | 0.04 | 0.06 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 11.38 | 0.03 | (0.31 | ) | (0.28 | ) | (0.30 | ) | (0.12 | ) | (0.42 | ) | ||||||||||||||||
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 9-30-2017 (unaudited) | 10.68 | 0.02 | 0.04 | 0.06 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 11.38 | (0.02 | ) | (0.26 | ) | (0.28 | ) | (0.30 | ) | (0.12 | ) | (0.42 | ) | |||||||||||||||
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 9-30-2017 (unaudited) | 10.72 | 0.08 | 0.04 | 0.12 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 11.39 | 0.06 | (0.23 | ) | (0.17 | ) | (0.38 | ) | (0.12 | ) | (0.50 | ) | ||||||||||||||||
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 N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 10.67 | 0.00 | * | 0.17 | 0.17 | — | — | — | ||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.70 | 0.05 | 0.02 | 0.07 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 11.39 | 0.04 | (0.28 | ) | (0.24 | ) | (0.33 | ) | (0.12 | ) | (0.45 | ) | ||||||||||||||||
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 9-30-2017 (unaudited) | 10.71 | 0.06 | 0.04 | 0.10 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 11.40 | 0.07 | (0.27 | ) | (0.20 | ) | (0.37 | ) | (0.12 | ) | (0.49 | ) | ||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
(8) | Ratio of expenses to average net assets excluding offering cost was 2.15%. |
(9) | Ratio of expenses to average net assets excluding offering cost was 1.27%. |
(10) | Ratio of expenses to average net assets excluding offering cost was 1.88%. |
.
54 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 10.81 | 1.03 | % | $ | 19 | 1.51 | %(4) | 1.00 | %(4) | 1.75 | %(4) | 0.76 | %(4) | 15 | % | ||||||||||||||||
Year ended 3-31-2017 | 10.70 | -1.79 | 35 | 1.51 | 1.09 | 1.63 | 0.97 | 54 | ||||||||||||||||||||||||
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 9-30-2017 (unaudited) | 10.74 | 0.56 | 1 | 2.29 | (4) | 0.37 | (4) | 2.33 | (4) | 0.33 | (4) | 15 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.68 | -2.50 | 1 | 2.31 | 0.26 | — | — | 54 | ||||||||||||||||||||||||
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 | (8) | 0.32 | 2.58 | 0.27 | 38 | |||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.74 | 0.56 | 6 | 2.31 | (4) | 0.33 | (4) | 2.35 | (4) | 0.29 | (4) | 15 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.68 | -2.52 | 8 | 2.29 | -0.20 | — | — | 54 | ||||||||||||||||||||||||
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 | (8) | 0.33 | 2.58 | 0.28 | 38 | |||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.84 | 1.12 | 69 | 1.16 | (4) | 1.54 | (4) | 1.38 | (4) | 1.32 | (4) | 15 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.72 | -1.44 | 63 | 1.22 | 0.57 | 1.32 | 0.47 | 54 | ||||||||||||||||||||||||
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 | (9) | 1.20 | 1.70 | 1.15 | 38 | |||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 10.84 | 1.59 | — | * | 1.16 | (4) | 0.02 | (4) | 1.30 | (4) | -0.12 | (4) | 15 | (7) | ||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.77 | 0.65 | 4 | 1.91 | (4) | 0.97 | (4) | 1.95 | (4) | 0.93 | (4) | 15 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.70 | -2.11 | 2 | 1.90 | 0.39 | — | — | 54 | ||||||||||||||||||||||||
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 | (10) | 0.60 | 2.31 | 0.55 | 38 | |||||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.81 | 0.93 | 5 | 1.51 | (4) | 1.17 | (4) | 1.60 | (4) | 1.08 | (4) | 15 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.71 | -1.77 | 5 | 1.50 | 0.63 | 1.56 | 0.57 | 54 | ||||||||||||||||||||||||
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.
2017 | SEMIANNUAL REPORT | 55 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY NATURAL RESOURCES FUND
Net Asset | 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 9-30-2017 (unaudited) | $ | 14.80 | $ | (0.02 | ) | $ | (0.25 | ) | $ | (0.27 | ) | $ | — | $ | — | $ | — | |||||||||||
Year ended 3-31-2017 | 12.53 | (0.03 | ) | 2.31 | 2.28 | (0.01 | ) | — | (0.01 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.57 | (0.10 | ) | (0.20 | ) | (0.30 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2017 | 10.75 | (0.15 | ) | 1.97 | 1.82 | — | — | — | ||||||||||||||||||||
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 | ) | — | — | — | |||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.39 | (0.06 | ) | (0.20 | ) | (0.26 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2017 | 10.55 | (0.10 | ) | 1.94 | 1.84 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.15 | 0.01 | (0.25 | ) | (0.24 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 12.81 | 0.04 | 2.37 | 2.41 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.40 | 0.01 | (0.25 | ) | (0.24 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 13.02 | 0.05 | 2.41 | 2.46 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.44 | 0.03 | (0.25 | ) | (0.22 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 13.06 | 0.07 | 2.42 | 2.49 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.61 | (0.03 | ) | (0.23 | ) | (0.26 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2017 | 12.37 | (0.04 | ) | 2.28 | 2.24 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.14 | 0.00 | * | (0.25 | ) | (0.25 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2017 | 12.80 | 0.01 | 2.38 | 2.39 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
.
56 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 14.53 | -1.82 | % | $ | 293 | 1.76 | %(4) | -0.34 | %(4) | — | % | — | % | 6 | % | ||||||||||||||||
Year ended 3-31-2017 | 14.80 | 18.19 | 329 | 1.72 | -0.22 | — | — | 64 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.27 | -2.39 | 5 | 2.99 | (4) | -1.60 | (4) | — | — | 6 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.57 | 16.93 | 7 | 2.77 | -1.27 | — | — | 64 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.13 | -2.10 | 79 | 2.40 | (4) | -1.00 | (4) | — | — | 6 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.39 | 17.44 | 100 | 2.34 | -0.84 | — | — | 64 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.91 | -1.58 | 5 | 1.27 | (4) | 0.16 | (4) | 2.22 | (4) | -0.79 | (4) | 6 | ||||||||||||||||||||
Year ended 3-31-2017 | 15.15 | 18.77 | 5 | 1.27 | 0.25 | 2.19 | -0.67 | 64 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.16 | -1.56 | 166 | 1.24 | (4) | 0.18 | (4) | — | — | 6 | ||||||||||||||||||||||
Year ended 3-31-2017 | 15.40 | 18.88 | 188 | 1.19 | 0.33 | — | — | 64 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.22 | -1.42 | 9 | 1.06 | (4) | 0.36 | (4) | — | — | 6 | ||||||||||||||||||||||
Year ended 3-31-2017 | 15.44 | 19.01 | 10 | 1.02 | 0.48 | — | — | 64 | ||||||||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.35 | -1.78 | 23 | 1.81 | (4) | -0.39 | (4) | — | — | 6 | ||||||||||||||||||||||
Year ended 3-31-2017 | 14.61 | 18.11 | 26 | 1.77 | -0.25 | — | — | 64 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.89 | -1.65 | 28 | 1.46 | (4) | -0.04 | (4) | — | — | 6 | ||||||||||||||||||||||
Year ended 3-31-2017 | 15.14 | 18.63 | 32 | 1.43 | 0.08 | — | — | 64 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 57 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY SCIENCE AND TECHNOLOGY FUND
Net Asset | 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 9-30-2017 (unaudited) | $ | 56.65 | $ | (0.19 | ) | $ | 9.24 | $ | 9.05 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2017 | 46.35 | (0.32 | ) | 10.62 | 10.30 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 47.68 | (0.36 | ) | 7.76 | 7.40 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 39.32 | (0.59 | ) | 8.95 | 8.36 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 49.39 | (0.36 | ) | 8.04 | 7.68 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 40.70 | (0.59 | ) | 9.28 | 8.69 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 56.28 | (0.20 | ) | 9.19 | 8.99 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 46.08 | (0.33 | ) | 10.53 | 10.20 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 61.88 | (0.12 | ) | 10.10 | 9.98 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 50.49 | (0.19 | ) | 11.58 | 11.39 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 62.13 | (0.07 | ) | 10.14 | 10.07 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 50.62 | (0.10 | ) | 11.61 | 11.51 | — | — | — | ||||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 55.38 | (0.28 | ) | 9.02 | 8.74 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 45.45 | (0.46 | ) | 10.39 | 9.93 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 59.54 | (0.20 | ) | 9.72 | 9.52 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 48.70 | (0.31 | ) | 11.15 | 10.84 | — | — | — | ||||||||||||||||||||
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 | ) |
(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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
(7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
.
58 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Loss to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 65.70 | 15.97 | % | $ | 1,090 | 1.25 | %(4) | -0.62 | %(4) | — | % | — | % | 11 | % | ||||||||||||||||
Year ended 3-31-2017 | 56.65 | 22.22 | 1,026 | 1.30 | -0.66 | — | — | 16 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 55.08 | 15.54 | 45 | 2.02 | (4) | -1.40 | (4) | — | — | 11 | ||||||||||||||||||||||
Year ended 3-31-2017 | 47.68 | 21.26 | 48 | 2.06 | -1.41 | — | — | 16 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 57.07 | 15.57 | 690 | 1.98 | (4) | -1.35 | (4) | — | — | 11 | ||||||||||||||||||||||
Year ended 3-31-2017 | 49.39 | 21.35 | 683 | 2.00 | -1.35 | — | — | 16 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 65.27 | 15.97 | 30 | 1.30 | (4) | -0.67 | (4) | 1.49 | (4) | -0.86 | (4) | 11 | ||||||||||||||||||||
Year ended 3-31-2017 | 56.28 | 22.13 | 25 | 1.33 | -0.67 | 1.58 | -0.92 | 16 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 71.86 | 16.13 | 1,456 | 0.99 | (4) | -0.37 | (4) | — | — | 11 | ||||||||||||||||||||||
Year ended 3-31-2017 | 61.88 | 22.56 | 1,327 | 1.00 | -0.35 | — | — | 16 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 72.20 | 16.22 | 98 | 0.85 | (4) | -0.22 | (4) | — | — | 11 | ||||||||||||||||||||||
Year ended 3-31-2017 | 62.13 | 22.74 | 93 | 0.85 | -0.18 | — | — | 16 | ||||||||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 64.12 | 15.78 | 125 | 1.59 | (4) | -0.96 | (4) | — | — | 11 | ||||||||||||||||||||||
Year ended 3-31-2017 | 55.38 | 21.85 | 108 | 1.59 | -0.94 | — | — | 16 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 69.06 | 15.99 | 669 | 1.24 | (4) | -0.61 | (4) | — | — | 11 | ||||||||||||||||||||||
Year ended 3-31-2017 | 59.54 | 22.26 | 644 | 1.24 | -0.59 | — | — | 16 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
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NOTES TO FINANCIAL STATEMENTS | IVY FUNDS |
SEPTEMBER 30, 2017 (UNAUDITED)
1. | ORGANIZATION |
Ivy Funds, a Delaware statutory trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Ivy Advantus Real Estate Securities Fund, Ivy Asset Strategy Fund, Ivy Balanced Fund, Ivy Energy Fund, Ivy LaSalle Global Real Estate Fund, Ivy LaSalle Global Risk-Managed Real Estate Fund, Ivy Natural Resources 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 N, 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. 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 N, Class R and Class Y shares are sold without either a front-end sales charge or a CDSC. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Net investment income, net assets and 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 N 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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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 or 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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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 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.
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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. The Board of Trustees of the Waddell & Reed Advisors Funds (“WRA Funds”) approved a Reorganization Plan, in which each WRA Fund has been reorganized into a corresponding fund within Ivy Funds, a trust whose investment advisor is IICO, an affiliate of Waddell & Reed Investment Management Company (“WRIMCO”). This means that the corresponding fund within Ivy Funds received all of the assets and liabilities of the corresponding WRA Fund in exchange for shares of the Ivy Fund. Each WRA Fund, in turn, distributed those Ivy Fund shares to its shareholders in liquidation and shareholders of a WRA Fund became shareholders of the corresponding Ivy Fund. Under the Reorganization Plan, each WRA Fund was reorganized into the Ivy Fund listed directly opposite such WRA Fund in the table below.
WRA Funds | Ivy Funds | |
WRA Energy Fund | Ivy Energy Fund |
The Reorganization took place on October 16, 2017.
On November 14, 2017, the Board of Trustees of the WRA Funds adopted a resolution in which the WRA Funds will be reorganized into a corresponding series of the Ivy Funds, an affiliated investment company, as shown in the table below. This means that the corresponding fund within Ivy Funds will receive all of the assets and liabilities of the corresponding WRA Fund in exchange for shares of the Ivy Fund. Each WRA Fund, in turn, will distribute those Ivy Fund shares to its shareholders in liquidation and shareholders of a WRA Fund will become shareholders of the corresponding Ivy Fund. Under the Reorganization Plan, each WRA Fund will be reorganized into the Ivy Fund listed directly opposite such WRA Fund in the table below.
WRA Funds | Ivy Funds | |
WRA Continental Income Fund | Ivy Balanced Fund | |
WRA Science and Technology Fund | Ivy Science and Technology Fund |
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,
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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.
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
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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 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.
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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 affiliated securities, respectively. Additionally, the net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of September 30, 2017, 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 Natural Resources Fund enters 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.
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Ivy Asset Strategy 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.
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 Asset Strategy Fund enters 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.
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, 2017:
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* | $ | 448 | $ | — | $ | 448 | $ | (448 | ) | $ | — | $ | — | $ | — | |||||||||||||
Swap agreements, | 5,361 | — | 5,361 | — | — | (4,700 | ) | 661 | ||||||||||||||||||||
Total | $ | 5,809 | $ | — | $ | 5,809 | $ | (448 | ) | $ | — | $ | (4,700 | ) | $ | 661 | ||||||||||||
Ivy Science and Technology Fund | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value* | $ | 23 | $ | — | $ | 23 | $ | (4 | ) | $ | — | $ | — | $ | 19 |
* | Purchased options are reported as investments in unaffiliated securities on the Statement of Assets and Liabilities. |
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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 | $ | 1,039 | $ | — | $ | 1,039 | $ | (448 | ) | $ | (591 | ) | $ | — | $ | — | ||||||||||||
Ivy Natural Resources Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | $ | 1,746 | $ | — | $ | 1,746 | $ | — | $ | (1,746 | ) | $ | — | $ | — | |||||||||||||
Ivy Science and Technology Fund | ||||||||||||||||||||||||||||
Written options at value | $4 | $— | $ | 4 | $(4) | $ | — | $ | — | $ | — |
Additional Disclosure Related to Derivative Instruments
Fair values of derivative instruments as of September 30, 2017:
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* | $ | 448 | Written options at value | $ | 1,039 | |||||||
Swap agreements, at value | 5,361 | — | ||||||||||||
Ivy Natural Resources Fund | Foreign currency | — | Unrealized depreciation on forward foreign currency contracts | 1,746 | ||||||||||
Ivy Science and Technology Fund | Equity | Investments in unaffiliated securities at value* | 23 | Written options at value | 4 |
* | 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, 2017:
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 | $ | (838 | ) | $ | 10,295 | $ | — | $ | 723 | $ | — | $ | 10,180 | ||||||||||||
Ivy Natural Resources Fund | Foreign currency | — | — | — | — | (4,004 | ) | (4,004 | ) | |||||||||||||||||
Ivy Science and Technology Fund | Equity | 198 | — | — | 957 | — | 1,155 |
* | 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, 2017:
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 | $ | (566 | ) | $ | (289 | ) | $ | — | $ | 156 | $ | — | $ | (699 | ) | ||||||||||
Ivy Natural Resources Fund | Foreign currency | — | — | — | — | (1,031 | ) | (1,031 | ) | |||||||||||||||||
Ivy Science and Technology Fund | Equity | (1,932 | ) | — | — | 219 | — | (1,713 | ) |
* | Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments. |
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During the period ended September 30, 2017, the average derivative volume was as follows:
Fund | Forward foreign currency contracts(1) | Long futures contracts(2) | Short futures contracts(2) | Swap agreements(3) | Purchased options(2) | Written options(2) | ||||||||||||||||||
Ivy Asset Strategy Fund | $ | — | $ | — | $ | — | $ | 70,961 | $ | 155 | $ | 223 | ||||||||||||
Ivy Natural Resources Fund | 784 | — | — | — | — | — | ||||||||||||||||||
Ivy Science and Technology Fund | — | — | — | — | 717 | 409 |
(1) | Average absolute value of unrealized appreciation/depreciation during the period. |
(2) | Average value outstanding during the period. |
(3) | Average notional amount outstanding during the period. |
5. | WRITTEN OPTION ACTIVITY ($ amounts in thousands) |
Transactions in written options were as follows:
Fund | Outstanding at 3-31-17 | Options written | Options closed | Options exercised | Options expired | Outstanding at 9-30-17 | ||||||||||||||||||
Ivy Asset Strategy Fund | ||||||||||||||||||||||||
Number of Contracts | N/A | 12,465 | (7,361 | ) | — | — | 5,104 | |||||||||||||||||
Notional Amount | N/A | 1,246 | (736 | ) | – | — | 510 | |||||||||||||||||
Premium Received | N/A | $ | 2,629 | $ | (1,434 | ) | $ | — | $ | — | $ | 1,195 | ||||||||||||
Ivy Science and Technology Fund | ||||||||||||||||||||||||
Number of Contracts | N/A | 108,348 | (66,621 | ) | (9,368 | ) | (24,667 | ) | 7,692 | |||||||||||||||
Notional Amount | N/A | 10,835 | (6,662 | ) | (937 | ) | (2,467 | ) | 769 | |||||||||||||||
Premium Received | N/A | $ | 4,305 | $ | (3,251 | ) | $ | (470 | ) | $ | (361 | ) | $ | 223 |
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 (the “Company”), a Delaware limited liability company, was incorporated as a wholly owned company acting as an investment vehicle for the Fund. The Subsidiary and the Company act 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 Company. The consolidated financial statements include the accounts of the Fund and its Subsidiary and the Company. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between the Fund and its Subsidiary and the Company comprising the entire issued share capital of the Subsidiary and the 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 the Company confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and the 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 the Company.
See the table below for details regarding the structure, incorporation and relationship as of September 30, 2017 of the Subsidiary and the 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 | $ | 3,657,846 | $ | 206,853 | 5.66 | % | ||||||||||||
Ivy ASF III (SBP), LLC | 4-9-13 | 4-23-13 | 3,657,846 | 18,727 | 0.51 | % |
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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 Advantus 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 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 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 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 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, 2017.
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 Advantus 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.
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.
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
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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 N 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, 2017, IDI received the following amounts in sales commissions and CDSCs:
Gross Sales | CDSC | Commissions | ||||||||||||||||||||||
Commissions | Class A | Class B | Class C | Class E | Paid(1) | |||||||||||||||||||
Ivy Advantus Real Estate Securities Fund | $ | 82 | $ | 4 | $ | 1 | $ | — | * | $ | — | $ | 67 | |||||||||||
Ivy Asset Strategy Fund | 161 | 1 | 97 | 25 | — | 158 | ||||||||||||||||||
Ivy Balanced Fund | 243 | — | * | 59 | 22 | — | 245 | |||||||||||||||||
Ivy Energy Fund | 66 | 19 | 3 | 6 | — | 66 | ||||||||||||||||||
Ivy LaSalle Global Real Estate Fund | 9 | — | — | — | * | N/A | 8 | |||||||||||||||||
Ivy LaSalle Global Risk-Managed Real Estate Fund | 12 | — | * | — | * | 1 | N/A | 11 | ||||||||||||||||
Ivy Natural Resources Fund | 105 | — | * | 2 | 1 | — | 89 | |||||||||||||||||
Ivy Science and Technology Fund | 368 | — | * | 50 | 10 | — | 349 |
* | Not shown due to rounding. |
(1) | IDI reallowed/paid this portion of the sales charge to financial advisors and selling broker-dealers. |
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Expense Reimbursements and/or Waivers. IICO, the Fund’s investment manager, IDI, the Fund’s distributor, and/or Waddell & Reed Services Company, doing business as WISC, the Fund’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any). Fund and class expense limitations and related waivers/reimbursements for the period ended September 30, 2017 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 Advantus Real Estate Securities Fund | All Classes | Contractual | 12-3-2012 | 7-31-2018 | N/A | $ | 303 | (1) | Investment Management Fee | ||||||||
Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.43% | $ | 5 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Asset Strategy Fund | Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.00% | $ | 54 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Balanced Fund | Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Energy Fund | Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy LaSalle Global Real Estate Fund | All Classes | Contractual | 1-12-2017 | 7-31-2018 | N/A | $ | 68 | (2) | Investment Management Fee | ||||||||
Class A | Contractual | 4-1-2013 | 7-31-2018 | 1.51% | $ | 5 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class I | Contractual | 1-12-2017 | 7-31-2018 | 1.05% | $ | 33 | Shareholder Servicing | ||||||||||
Class N | Contractual | 7-5-2017 | 7-31-2018 | 1.05% | $ | 1 | Shareholder Servicing | ||||||||||
Class Y | Contractual | 4-1-2013 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy LaSalle Global Risk-Managed Real Estate Fund | All Classes | Contractual | 1-12-2017 | 7-31-2018 | N/A | $ | 22 | (2) | Investment Management Fee | ||||||||
Class A | Contractual | 4-1-2013 | 7-31-2018 | 1.51% | $ | 23 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class I | Contractual | 8-1-2016 | 7-31-2018 | 1.16% | $ | 64 | Shareholder Servicing | ||||||||||
Class N | Contractual | 7-5-2017 | 7-31-2018 | Not to exceed Class I | $ | — | * | Shareholder Servicing | |||||||||
Class Y | Contractual | 4-1-2013 | 7-31-2018 | Not to exceed Class A | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Ivy Natural Resources Fund | Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.27% | $ | 22 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Science and Technology Fund | Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.30% | $ | 25 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A |
* | Not shown due to rounding. |
(1) | The Fund’s investment management fee is being reduced by 0.10% of average daily net assets until July 31, 2018. |
(2) | Due to Class A, Class I, Class N and/or Class Y contractual expense limits, investment management fees were waived for all share classes. |
Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2017 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.
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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 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, 2017.
9. | AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands) |
A summary of the transactions in affiliated companies during the period ended September 30, 2017 follows:
3-31-17 Share Balance | Gross Additions | Gross Reductions | Realized Gain/ (Loss) | Distributions Received | 9-30-17 Share Balance | 9-30-17 Value | Net Change in Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||||||
Ivy Asset Strategy Fund | ||||||||||||||||||||||||||||||||
Media Group Holdings LLC, Series H(1) | 640 | $ | — | $ | — | $ | — | $ | — | 640 | $ | 3,000 | $ | (2,865 | ) | |||||||||||||||||
Media Group Holdings LLC, Series I | 381 | — | (123,222 | ) | (81,330 | ) | — | N/A | N/A | 88,024 | ||||||||||||||||||||||
Media Group Holdings LLC, Series T(1) | 80 | — | — | — | — | 80 | 15,140 | (14,790 | ) | |||||||||||||||||||||||
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$ | (81,330 | ) | $ | — | $ | 18,140 | $ | 70,369 | ||||||||||||||||||||||||
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3-31-17 Share Balance | Gross Additions | Gross Reductions | Realized Gain/ (Loss) | Distributions Received | 9-30-17 Share Balance | 9-30-17 Value | Net Change in Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||||||
Ivy Science and Technology Fund | ||||||||||||||||||||||||||||||||
ACI Worldwide, Inc.(1) | 7,802 | $ | — | $ | — | $ | — | $ | — | 7,802 | $ | 177,740 | $ | 10,845 | ||||||||||||||||||
Arcadia Biosciences, Inc.(2) | 2,456 | — | (4,111 | ) | (3,760 | ) | — | N/A | N/A | 17,784 | ||||||||||||||||||||||
Avinger, Inc.(2) | 3,125 | — | (20,598 | ) | (18,838 | ) | — | N/A | N/A | 14,659 | ||||||||||||||||||||||
BioAmber, Inc.(2) | 3,813 | — | (30,425 | ) | (29,258 | ) | — | N/A | N/A | 21,578 | ||||||||||||||||||||||
BioAmber, Inc., expires 5-9-17(2) | 1,276 | — | — | — | — | N/A | N/A | 393 | ||||||||||||||||||||||||
Evogene Ltd.(1) | 1,465 | — | — | — | — | 1,465 | 6,461 | (1,369 | ) | |||||||||||||||||||||||
Marrone Bio Innovations, Inc.(1) | 2,608 | — | — | — | — | 2,608 | 2,999 | (2,086 | ) | |||||||||||||||||||||||
Marrone Bio Innovations, Inc., expires 8-20-23 | 2,390 | — | — | — | — | 2,390 | – | (95 | ) | |||||||||||||||||||||||
Rambus, Inc.(1) | 5,497 | — | — | — | — | 5,497 | 73,386 | 28,513 | ||||||||||||||||||||||||
Silver Spring Networks, Inc.(2) | 4,105 | — | (73,361 | ) | (10,388 | ) | — | N/A | N/A | 27,020 | ||||||||||||||||||||||
WNS (Holdings) Ltd. ADR(1) | 5,463 | — | (18,800 | ) | 12,282 | — | 4,581 | 167,219 | 29,710 | |||||||||||||||||||||||
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$ | (49,962 | ) | $ | — | $ | 427,805 | $ | 146,952 | ||||||||||||||||||||||||
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3-31-17 Principal Balance | Interest Received | 9-30-17 Principal Balance | Net Change in Unrealized Depreciation | |||||||||||||||||||||||||||||
Marrone Bio Innovations, Inc., 8.000%, 8-20-20 | $ | 23,900 | $ | — | $ | — | $ | — | $ | 948 | $ | 23,900 | $ | 23,991 | $ | (12 | ) |
(1) | No dividends were paid during the preceding 12 months. |
(2) | No longer affiliated as of September 30, 2017. |
2017 | SEMIANNUAL REPORT | 73 |
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10. | INVESTMENT SECURITIES TRANSACTIONS ($ amounts in thousands) |
The cost of purchases and the proceeds from maturities and sales of investment securities (excluding short-term securities) for the period ended September 30, 2017, were as follows:
Purchases | Sales | |||||||||||||||
U.S. Government | Other Issuers | U.S. Government | Other Issuers | |||||||||||||
Ivy Advantus Real Estate Securities Fund | $ | — | $ | 190,945 | $ | — | $ | 270,723 | ||||||||
Ivy Asset Strategy Fund | — | 344,758 | 1,019 | 1,200,372 | ||||||||||||
Ivy Balanced Fund | 14,078 | 268,998 | 5,155 | 638,207 | ||||||||||||
Ivy Energy Fund | — | 20,647 | — | 43,293 | ||||||||||||
Ivy LaSalle Global Real Estate Fund | — | 63,230 | — | 15,041 | ||||||||||||
Ivy LaSalle Global Risk-Managed Real Estate Fund | — | 16,119 | — | 26,484 | ||||||||||||
Ivy Natural Resources Fund | — | 36,468 | — | 121,586 | ||||||||||||
Ivy Science and Technology Fund | — | 435,955 | — | 791,026 |
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 Advantus Real Estate Securities Fund | Ivy Asset Strategy Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 261 | $ | 6,940 | 1,944 | $ | 55,447 | 2,759 | $ | 61,993 | 5,838 | $ | 122,856 | ||||||||||||||||||||
Class B | 1 | 25 | 24 | 678 | 9 | 189 | 46 | 922 | ||||||||||||||||||||||||
Class C | 11 | 273 | 144 | 4,105 | 393 | 8,370 | 1,693 | 33,938 | ||||||||||||||||||||||||
Class E | 6 | 149 | 38 | 1,105 | 58 | 1,300 | 194 | 4,097 | ||||||||||||||||||||||||
Class I | 883 | 23,640 | 9,059 | 260,845 | 2,108 | 48,200 | 26,993 | 571,008 | ||||||||||||||||||||||||
Class N | 28 | 740 | 35 | 973 | 37 | 854 | 604 | 12,885 | ||||||||||||||||||||||||
Class R | 5 | 138 | 30 | 871 | 144 | 3,192 | 621 | 12,927 | ||||||||||||||||||||||||
Class Y | 64 | 1,693 | 531 | 15,402 | 211 | 4,765 | 1,161 | 24,456 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | 16 | 439 | 1,018 | 26,334 | — | — | — | — | ||||||||||||||||||||||||
Class B | — | — | 13 | 323 | — | — | — | — | ||||||||||||||||||||||||
Class C | — | — | 59 | 1,496 | — | — | — | — | ||||||||||||||||||||||||
Class E | — | * | 7 | 14 | 369 | — | — | — | — | |||||||||||||||||||||||
Class I | 32 | 864 | 735 | 18,999 | — | — | — | — | ||||||||||||||||||||||||
Class N | 1 | 19 | 10 | 274 | — | — | — | — | ||||||||||||||||||||||||
Class R | — | * | 1 | 4 | 109 | — | — | — | — | |||||||||||||||||||||||
Class Y | 12 | 325 | 516 | 13,341 | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (1,480 | ) | (39,342 | ) | (10,732 | ) | (305,675 | ) | (11,453 | ) | (257,320 | ) | (97,094 | ) | (2,039,468 | ) | ||||||||||||||||
Class B | (26 | ) | (662 | ) | (66 | ) | (1,790 | ) | (1,790 | ) | (37,737 | ) | (7,749 | ) | (154,123 | ) | ||||||||||||||||
Class C | (109 | ) | (2,826 | ) | (255 | ) | (6,917 | ) | (16,972 | ) | (360,379 | ) | (114,307 | ) | (2,289,013 | ) | ||||||||||||||||
Class E | (15 | ) | (388 | ) | (26 | ) | (733 | ) | (229 | ) | (5,169 | ) | (1,006 | ) | (21,241 | ) | ||||||||||||||||
Class I | (1,616 | ) | (43,225 | ) | (2,290 | ) | (63,768 | ) | (17,239 | ) | (387,588 | ) | (97,150 | ) | (2,069,199 | ) | ||||||||||||||||
Class N | (22 | ) | (587 | ) | (36 | ) | (1,017 | ) | (166 | ) | (3,777 | ) | (563 | ) | (12,093 | ) | ||||||||||||||||
Class R | (22 | ) | (578 | ) | (26 | ) | (735 | ) | (630 | ) | (13,976 | ) | (2,762 | ) | (57,472 | ) | ||||||||||||||||
Class Y | (760 | ) | (20,229 | ) | (1,375 | ) | (37,525 | ) | (2,588 | ) | (58,091 | ) | (14,846 | ) | (312,587 | ) | ||||||||||||||||
Net decrease | (2,730 | ) | $ | (72,584 | ) | (632 | ) | $ | (17,489 | ) | (45,348 | ) | $ | (995,174 | ) | (298,327 | ) | $ | (6,172,107 | ) |
* | Not shown due to rounding. |
74 | SEMIANNUAL REPORT | 2017 |
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Ivy Balanced Fund | Ivy Energy Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 1,517 | $ | 37,218 | 9,363 | $ | 219,911 | 1,466 | $ | 16,741 | 6,118 | $ | 79,185 | ||||||||||||||||||||
Class B | 54 | 1,304 | 798 | 18,523 | 19 | 199 | 95 | 1,161 | ||||||||||||||||||||||||
Class C | 638 | 15,511 | 6,853 | 159,771 | 284 | 3,018 | 1,540 | 18,711 | ||||||||||||||||||||||||
Class E | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class I | 3,005 | 73,685 | 28,861 | 672,214 | 4,375 | 51,260 | 13,750 | 184,444 | ||||||||||||||||||||||||
Class N | 172 | 4,225 | 291 | 6,841 | 300 | 3,584 | 792 | 10,642 | ||||||||||||||||||||||||
Class R | 35 | 862 | 185 | 4,367 | 341 | 3,871 | 1,092 | 14,314 | ||||||||||||||||||||||||
Class Y | 128 | 3,132 | 1,032 | 24,290 | 1,605 | 18,637 | 3,569 | 48,220 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | 230 | 5,649 | 775 | 18,249 | — | — | — | — | ||||||||||||||||||||||||
Class B | 13 | 322 | 49 | 1,150 | — | — | — | — | ||||||||||||||||||||||||
Class C | 132 | 3,209 | 503 | 11,750 | — | — | — | — | ||||||||||||||||||||||||
Class E | — | * | 2 | — | * | 2 | — | — | — | — | ||||||||||||||||||||||
Class I | 243 | 5,974 | 690 | 16,284 | — | — | — | — | ||||||||||||||||||||||||
Class N | 5 | 131 | 11 | 253 | — | — | — | — | ||||||||||||||||||||||||
Class R | 4 | 90 | 10 | 244 | — | — | — | — | ||||||||||||||||||||||||
Class Y | 18 | 445 | 82 | 1,939 | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (5,294 | ) | (129,933 | ) | (38,939 | ) | (909,674 | ) | (3,331 | ) | (37,550 | ) | (12,173 | ) | (154,744 | ) | ||||||||||||||||
Class B | (594 | ) | (14,408 | ) | (1,185 | ) | (27,833 | ) | (93 | ) | (969 | ) | (116 | ) | (1,373 | ) | ||||||||||||||||
Class C | (6,168 | ) | (150,040 | ) | (17,117 | ) | (402,578 | ) | (1,498 | ) | (15,720 | ) | (2,372 | ) | (29,004 | ) | ||||||||||||||||
Class E | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class I | (6,658 | ) | (163,327 | ) | (18,097 | ) | (429,246 | ) | (3,712 | ) | (43,084 | ) | (5,126 | ) | (69,280 | ) | ||||||||||||||||
Class N | (114 | ) | (2,807 | ) | (116 | ) | (2,754 | ) | (267 | ) | (3,092 | ) | (313 | ) | (4,201 | ) | ||||||||||||||||
Class R | (72 | ) | (1,764 | ) | (197 | ) | (4,683 | ) | (292 | ) | (3,351 | ) | (883 | ) | (11,675 | ) | ||||||||||||||||
Class Y | (917 | ) | (22,620 | ) | (3,621 | ) | (85,832 | ) | (1,494 | ) | (17,528 | ) | (3,456 | ) | (46,422 | ) | ||||||||||||||||
Net increase (decrease) | (13,623 | ) | $ | (333,140 | ) | (29,769 | ) | $ | (706,812 | ) | (2,297 | ) | $ | (23,984 | ) | 2,517 | $ | 39,978 |
* | Not shown due to rounding. |
2017 | SEMIANNUAL REPORT | 75 |
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Ivy LaSalle Global Real Estate Fund | Ivy LaSalle Global Risk-Managed Real Estate Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 81 | $ | 851 | 450 | $ | 4,678 | 122 | $ | 1,321 | 4,447 | $ | 49,992 | ||||||||||||||||||||
Class B | — | — | 4 | 42 | — | — | 29 | 334 | ||||||||||||||||||||||||
Class C | 3 | 33 | 31 | 321 | 9 | 101 | 536 | 6,071 | ||||||||||||||||||||||||
Class I | 5,272 | 54,635 | 2,332 | 23,824 | 2,408 | 26,180 | 7,668 | 84,172 | ||||||||||||||||||||||||
Class N | 4,713 | 49,275 | N/A | N/A | 30 | 317 | N/A | N/A | ||||||||||||||||||||||||
Class R | — | * | 4 | 1 | 13 | 175 | 1,882 | 22 | 251 | |||||||||||||||||||||||
Class Y | — | * | 3 | 7 | 78 | 19 | 204 | 535 | 6,150 | |||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | — | — | 52 | 528 | — | — | 238 | 2,576 | ||||||||||||||||||||||||
Class B | — | — | — | * | 1 | — | — | 2 | 17 | |||||||||||||||||||||||
Class C | — | — | 1 | 7 | — | — | 13 | 141 | ||||||||||||||||||||||||
Class I | — | — | 16 | 158 | — | — | 135 | 1,409 | ||||||||||||||||||||||||
Class N | — | — | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class R | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class Y | — | — | — | * | 1 | — | — | 5 | 51 | |||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (303 | ) | (3,168 | ) | (2,127 | ) | (21,684 | ) | (1,660 | ) | (18,076 | ) | (7,037 | ) | (77,168 | ) | ||||||||||||||||
Class B | (3 | ) | (28 | ) | (4 | ) | (41 | ) | (5 | ) | (54 | ) | (36 | ) | (386 | ) | ||||||||||||||||
Class C | (13 | ) | (139 | ) | (26 | ) | (270 | ) | (145 | ) | (1,556 | ) | (171 | ) | (1,827 | ) | ||||||||||||||||
Class I | (4,858 | ) | (50,724 | ) | (676 | ) | (6,981 | ) | (1,992 | ) | (21,528 | ) | (2,879 | ) | (31,690 | ) | ||||||||||||||||
Class N | (246 | ) | (2,608 | ) | (N/A | N/A | (2 | ) | (25 | ) | N/A | N/A | ||||||||||||||||||||
Class R | (1 | ) | (10 | ) | — | * | (2 | ) | (10 | ) | (103 | ) | (4 | ) | (39 | ) | ||||||||||||||||
Class Y | — | * | (4 | ) | (22 | ) | (229 | ) | (38 | ) | (413 | ) | (433 | ) | (4,993 | ) | ||||||||||||||||
Net increase (decrease) | 4,645 | $ | 48,120 | 39 | $ | 444 | (1,089 | ) | $ | (11,750 | ) | 3,070 | $ | 35,061 |
* | Not shown due to rounding. |
76 | SEMIANNUAL REPORT | 2017 |
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Ivy Natural Resources Fund | Ivy Science and Technology Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 888 | $ | 12,516 | 2,526 | $ | 35,828 | 1,203 | $ | 72,672 | 3,424 | $ | 168,361 | ||||||||||||||||||||
Class B | 2 | 26 | 26 | 312 | 22 | 1,100 | 68 | 2,863 | ||||||||||||||||||||||||
Class C | 88 | 1,031 | 439 | 5,259 | 330 | 17,395 | 1,021 | 44,274 | ||||||||||||||||||||||||
Class E | 13 | 189 | 69 | 1,026 | 37 | 2,259 | 82 | 4,083 | ||||||||||||||||||||||||
Class I | 1,121 | 16,355 | 9,500 | 136,570 | 3,203 | 211,692 | 12,351 | 658,557 | ||||||||||||||||||||||||
Class N | 140 | 1,997 | 181 | 2,741 | 259 | 17,170 | 734 | 38,993 | ||||||||||||||||||||||||
Class R | 127 | 1,744 | 593 | 8,413 | 295 | 17,335 | 513 | 25,118 | ||||||||||||||||||||||||
Class Y | 119 | 1,714 | 506 | 7,433 | 1,137 | 72,220 | 2,220 | 116,203 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | — | — | 14 | 212 | — | — | — | — | ||||||||||||||||||||||||
Class B | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class C | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class E | — | — | 1 | 22 | — | — | — | — | ||||||||||||||||||||||||
Class I | — | — | 57 | 926 | — | — | — | — | ||||||||||||||||||||||||
Class N | — | — | 4 | 71 | — | — | — | — | ||||||||||||||||||||||||
Class R | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class Y | — | — | 6 | 100 | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (2,942 | ) | (40,990 | ) | (13,419 | ) | (185,253 | ) | (2,734 | ) | (165,136 | ) | (23,945 | ) | (1,165,345 | ) | ||||||||||||||||
Class B | (181 | ) | (2,168 | ) | (371 | ) | (4,522 | ) | (204 | ) | (10,293 | ) | (402 | ) | (16,794 | ) | ||||||||||||||||
Class C | (1,657 | ) | (19,425 | ) | (2,764 | ) | (33,166 | ) | (2,062 | ) | (108,570 | ) | (7,661 | ) | (332,575 | ) | ||||||||||||||||
Class E | (41 | ) | (584 | ) | (84 | ) | (1,230 | ) | (31 | ) | (1,914 | ) | (84 | ) | (4,134 | ) | ||||||||||||||||
Class I | (2,370 | ) | (34,530 | ) | (5,210 | ) | (77,678 | ) | (4,365 | ) | (289,951 | ) | (17,919 | ) | (962,281 | ) | ||||||||||||||||
Class N | (202 | ) | (3,014 | ) | (382 | ) | (5,661 | ) | (390 | ) | (26,833 | ) | (525 | ) | (28,719 | ) | ||||||||||||||||
Class R | (306 | ) | (4,241 | ) | (768 | ) | (10,820 | ) | (305 | ) | (18,041 | ) | (975 | ) | (47,192 | ) | ||||||||||||||||
Class Y | (326 | ) | (4,699 | ) | (1,019 | ) | (14,998 | ) | (2,272 | ) | (144,291 | ) | (6,875 | ) | (359,516 | ) | ||||||||||||||||
Net decrease | (5,527 | ) | $ | (74,079 | ) | (10,095 | ) | $ | (134,415 | ) | (5,877 | ) | $ | (353,186 | ) | (37,973 | ) | $ | (1,858,104 | ) |
12. | FEDERAL INCOME TAX MATTERS ($ amounts in thousands) |
For Federal income tax purposes, cost of investments owned at September 30, 2017 and the related unrealized appreciation (depreciation) were as follows:
Fund | Cost of Investments | Gross Appreciation | Gross Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Ivy Advantus Real Estate Securities Fund | $ | 435,089 | $ | 135,125 | $ | 5,443 | $ | 129,682 | ||||||||
Ivy Asset Strategy Fund | 3,665,127 | 617,477 | 629,013 | (11,536 | ) | |||||||||||
Ivy Balanced Fund | 1,721,311 | 289,101 | 82,993 | 206,108 | ||||||||||||
Ivy Energy Fund | 444,595 | 52,684 | 33,902 | 18,782 | ||||||||||||
Ivy LaSalle Global Real Estate Fund | 81,424 | 3,599 | 1,748 | 1,851 | ||||||||||||
Ivy LaSalle Global Risk-Managed Real Estate Fund | 101,717 | 5,027 | 3,899 | 1,128 | ||||||||||||
Ivy Natural Resources Fund | 594,251 | 104,031 | 82,501 | 21,530 | ||||||||||||
Ivy Science and Technology Fund | 2,127,270 | 2,172,915 | 100,633 | 2,072,282 |
2017 | SEMIANNUAL REPORT | 77 |
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For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2017 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 Advantus Real Estate Securities Fund | $ | 223 | $ | 33,280 | $ | — | $ | 5,709 | $ | — | ||||||||||
Ivy Asset Strategy Fund | 4,361 | — | — | — | — | |||||||||||||||
Ivy Balanced Fund | 11,201 | 30,589 | — | — | — | |||||||||||||||
Ivy Energy Fund | — | — | — | — | 1,201 | |||||||||||||||
Ivy LaSalle Global Real Estate Fund | — | 36 | — | — | — | |||||||||||||||
Ivy LaSalle Global Risk-Managed Real Estate Fund | 39 | 101 | — | 712 | — | |||||||||||||||
Ivy Natural Resources Fund | — | — | — | — | — | |||||||||||||||
Ivy Science and Technology Fund | — | 112,084 | — | — | 5,730 |
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, 2017 and 2016 were as follows:
March 31, 2017 | March 31, 2016 | |||||||||||||||
Fund | Distributed Ordinary Income(1) | Distributed Long-Term Capital Gains | Distributed Ordinary Income(1) | Distributed Long-Term Capital Gains | ||||||||||||
Ivy Advantus Real Estate Securities Fund | $ | 12,802 | $ | 49,890 | $ | 10,986 | $ | 28,841 | ||||||||
Ivy Asset Strategy Fund | — | — | 37,222 | 959,717 | ||||||||||||
Ivy Balanced Fund | 28,198 | 28,965 | 48,087 | 100,678 | ||||||||||||
Ivy Energy Fund | — | — | — | — | ||||||||||||
Ivy LaSalle Global Real Estate Fund | 638 | 137 | 711 | 368 | ||||||||||||
Ivy LaSalle Global Risk-Managed Real Estate Fund | 3,629 | 1,360 | 912 | 528 | ||||||||||||
Ivy Natural Resources Fund | 1,442 | — | — | — | ||||||||||||
Ivy Science and Technology Fund | — | — | — | 144,996 |
(1) | Includes short-term capital gains, 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, 2017 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, 2017:
Pre-Enactment | Post-Enactment | |||||||||||||||
Fund | 2018 | 2019 | Short-Term Capital Loss Carryover | Long-Term Capital Loss Carryover | ||||||||||||
Ivy Advantus Real Estate Securities Fund | $ | — | $ | — | $ | — | $ | — | ||||||||
Ivy Asset Strategy Fund | — | — | 70,840 | — | ||||||||||||
Ivy Balanced Fund | — | — | — | — | ||||||||||||
Ivy Energy Fund | 6,022 | — | 38,989 | 51,576 | ||||||||||||
Ivy LaSalle Global Real Estate Fund | — | — | — | — | ||||||||||||
Ivy LaSalle Global Risk-Managed Real Estate Fund | — | — | — | — | ||||||||||||
Ivy Natural Resources Fund | 1,529,206 | — | 263,604 | 357,904 | ||||||||||||
Ivy Science and Technology Fund | — | — | — | — |
78 | SEMIANNUAL REPORT | 2017 |
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RENEWAL OF INVESTMENT MANAGEMENT AGREEMENTS | IVY FUNDS |
At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 15 and 16, 2017, 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 Advantus Bond Fund and Ivy Advantus 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 LaSalle Global Real Estate Fund and Ivy LaSalle Global Risk-Managed Real Estate Fund and Ivy Apollo Multi-Asset Income Fund); and |
• | Pictet Asset Management Limited and Pictet Asset Management (Singapore) Pte Ltd. (with respect to the Ivy Emerging Markets Local Currency Debt Fund) |
• | Pictet Asset Management Limited and Pictet Asset Management SA (Ivy Targeted Return Bond Fund) |
• | Apollo Credit Management, LLC (Ivy Apollo Multi–Asset Income Fund and Ivy Apollo Strategic Income 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 and the Subadvisers. 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 2017. They further reviewed these materials among themselves, with their independent legal counsel and the independent fee consultant, and with the other Board members at executive sessions of the Independent Trustees at the August 15th and 16th 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 by independent legal counsel to the Independent Trustees.
The Board also took into account the report from its Investment Oversight Committee (the “IOC”), in light of that committee’s duties to assist the Board in the 15(c) process. The IOC had reported to the Board on its review of the overall performance of the Funds, IICO’s investment risk management function, and the proposed and on-going changes IICO has been considering for itself, the Trust and the overall fund complex. As such, the Board examined all of IICO’s activities (both taken and proposed) in light of the Funds’ performance and expense structure, as well as the proposed overall rationalization of the fund complex, which is designed to provide economies of scale to the Funds’ shareholders, reduce the Funds’ expenses and enhance the performance of the Funds, particularly in the context of substantial industry change and regulatory developments.
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,
2017 | SEMIANNUAL REPORT | 79 |
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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 each entity 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, an affiliate of IICO, provides the Funds. 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 nor 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 significant number of initiatives that IICO is undertaking to seek to rationalize the fund complex, reduce expenses and enhance performance.
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
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; |
2. | Management fees and expenses in the context of performance; |
3. | Product category expenses, including peers; |
4. | Profit margins of IICO’s parent from supplying such services; |
5. | Subadviser and institutional fee analyses; and |
6. | Possible economies of scale as a Fund grows larger. |
80 | SEMIANNUAL REPORT | 2017 |
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The following summarizes the findings of the independent fee consultant retained by the Independent Trustees.
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 the 36 months ended March 31, 2017, approximately 9% of the funds within the Waddell & Reed Fund Complex (including the Funds) were in the top quartile of performance and 33% of such funds were in the top two quartiles of performance, and that short-term performance of such funds were showing signs of improvement. Specifically, the report noted that 42% of the funds were in the top two quartiles in the one-year period, and that 32% of all such funds had improving performance in their one-year period. 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.
The report further indicated that total expenses of the Funds, on average, were 2% over the average total expenses of their respective Broadridge Expense Group peers and 3% below the average total expenses for their Broadridge Expense Universes. The management fees for the funds were 1% over the average management fees of their respective Broadridge Expense Group peers and 3% over the average management fees for their Broadridge Expense Universes.
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 through management fee breakpoints, decline in transfer agency expenses, decline in custody contract rates and declines in other non-management expenses.
The report also noted that the overall profitability of IICO’s parent 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 time in board mergers and fund mergers, which could help drive down expenses for shareholders.
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 are generally similar.
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.
2017 | SEMIANNUAL REPORT | 81 |
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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.
82 | SEMIANNUAL REPORT | 2017 |
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THE IVY FUNDS FAMILY |
Domestic Equity Funds
Ivy Core Equity Fund
Ivy Dividend Opportunities Fund
Ivy Large Cap Growth Fund
Ivy Micro Cap Growth Fund
Ivy Mid Cap Growth Fund
Ivy Mid Cap Income Opportunities Fund
Ivy Small Cap Core Fund
Ivy Small Cap Growth Fund
Ivy Tax-Managed Equity Fund
Ivy Value Fund
Global/International Funds
Ivy Cundill Global Value Fund
Ivy Emerging Markets Equity Fund
Ivy Pictet 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 IG International Small Cap Fund
Ivy International Core Equity Fund
Ivy Managed International Opportunities Fund
Index Funds
Ivy ProShares S&P 500 Dividend Aristocrats Index Fund
Ivy ProShares Russell 2000 Dividend Growers Index Fund
Ivy ProShares Interest Rate Hedged High Yield Index Fund
Ivy ProShares S&P 500 Bond Index Fund
Ivy ProShares MSCI ACWI Index Fund
Speciality Funds
Ivy Advantus Real Estate Securities Fund
Ivy Apollo Multi-Asset Income Fund
Ivy Asset Strategy Fund
Ivy Balanced Fund
Ivy Energy Fund
Ivy LaSalle Global Real Estate Fund
Ivy LaSalle Global Risk-Managed Real Estate Fund
Ivy Natural Resources Fund
Ivy Science and Technology Fund
Fixed Income Funds
Ivy Advantus Bond Fund
Ivy Apollo Strategic Income Fund
Ivy California Municipal High Income Fund
Ivy Crossover Credit Fund
Ivy Global Bond Fund
Ivy Government Money Market Fund
Ivy High Income Fund
Ivy Limited-Term Bond Fund
Ivy Municipal Bond Fund
Ivy Municipal High Income Fund
Ivy Pictet Targeted Return Bond Fund
Ivy PineBridge High Yield 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.
2017 | SEMIANNUAL REPORT | 83 |
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SEMIANN-IVYSPEC (9/17)
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Semiannual Report
September 30, 2017 |
Ticker | ||||||||||||||||||||||||||||||||||||
Class A | Class B | Class C | Class E | Class I | Class N | Class R | Class T | Class Y | ||||||||||||||||||||||||||||
IVY FUNDS | ||||||||||||||||||||||||||||||||||||
Ivy Advantus Bond Fund | IBOAX | IBOBX | IBOCX | IVBEX | IVBIX | IBNDX | IYBDX | IBOYX | ||||||||||||||||||||||||||||
Ivy Core Equity Fund | WCEAX | WCEBX | WTRCX | ICFEX | ICIEX | ICEQX | IYCEX | WCEYX | ||||||||||||||||||||||||||||
Ivy Cundill Global Value Fund | ICDAX | ICDBX | ICDCX | ICVIX | ICNGX | IYCUX | ICDYX | |||||||||||||||||||||||||||||
Ivy Dividend Opportunities Fund | IVDAX | IVDBX | IVDCX | IDIEX | IVDIX | IDOTX | IYDVX | IVDYX | ||||||||||||||||||||||||||||
Ivy Emerging Markets Equity Fund | IPOAX | IPOBX | IPOCX | IPOEX | IPOIX | IMEGX | IYPCX | IPOTX | IPOYX | |||||||||||||||||||||||||||
Ivy European Opportunities Fund | IEOAX | IEOBX | IEOCX | IVEOX | IEOIX | IEURX | IYEUX | IEOYX | ||||||||||||||||||||||||||||
Ivy Global Bond Fund | IVSAX | IVSBX | IVSCX | IVSIX | IVBDX | IYGOX | IVSYX | |||||||||||||||||||||||||||||
Ivy Global Equity Income Fund | IBIAX | IBIBX | IBICX | IBIIX | IICNX | IYGEX | IBIYX | |||||||||||||||||||||||||||||
Ivy Global Growth Fund | IVINX | IVIBX | IVNCX | IIGEX | IGIIX | ITGRX | IYIGX | IVIYX | ||||||||||||||||||||||||||||
Ivy Global Income Allocation Fund | IVBAX | IVBBX | IVBCX | IIBEX | IIBIX | ILIAX | IYGBX | IVBYX | ||||||||||||||||||||||||||||
Ivy Government Money Market Fund | WRAXX | WRBXX | WRCXX | IVEXX | WRNXX | |||||||||||||||||||||||||||||||
Ivy High Income Fund | WHIAX | WHIBX | WRHIX | IVHEX | IVHIX | IHIFX | IYHIX | WHITX | WHIYX | |||||||||||||||||||||||||||
Ivy International Core Equity Fund | IVIAX | IIFBX | IVIFX | IICEX | ICEIX | IINCX | IYITX | IICTX | IVVYX | |||||||||||||||||||||||||||
Ivy Large Cap Growth Fund | WLGAX | WLGBX | WLGCX | ILCEX | IYGIX | ILGRX | WLGRX | WLGYX | ||||||||||||||||||||||||||||
Ivy Limited-Term Bond Fund | WLTAX | WLTBX | WLBCX | IVLEX | ILTIX | ILMDX | IYLTX | WLTYX | ||||||||||||||||||||||||||||
Ivy Managed International Opportunities Fund | IVTAX | IVTBX | IVTCX | IVTEX | IVTIX | IVTNX | IYMGX | IVTYX | ||||||||||||||||||||||||||||
Ivy Micro Cap Growth Fund | IGWAX | IGWBX | IGWCX | IGWIX | IMIGX | IYMRX | IGWYX | |||||||||||||||||||||||||||||
Ivy Mid Cap Growth Fund | WMGAX | WMGBX | WMGCX | IMCEX | IYMIX | IGRFX | WMGRX | WMGYX | ||||||||||||||||||||||||||||
Ivy Mid Cap Income Opportunities Fund | IVOAX | IVOCX | IVOEX | IVOIX | IVOSX | IVORX | IVOYX | |||||||||||||||||||||||||||||
Ivy Municipal Bond Fund | WMBAX | WMBBX | WMBCX | IMBIX | IMBNX | WMBYX | ||||||||||||||||||||||||||||||
Ivy Municipal High Income Fund | IYIAX | IYIBX | IYICX | WYMHX | IYINX | IYIYX | ||||||||||||||||||||||||||||||
Ivy Small Cap Core Fund | IYSAX | IYSBX | IYSCX | IYVIX | IVVIX | ISPVX | IYSMX | IYCTX | IYSYX | |||||||||||||||||||||||||||
Ivy Small Cap Growth Fund | WSGAX | WSGBX | WRGCX | ISGEX | IYSIX | IRGFX | WSGRX | IYSTX | WSCYX | |||||||||||||||||||||||||||
Ivy Tax-Managed Equity Fund | IYEAX | IYEBX | IYECX | WYTMX | IYENX | IYEYX | ||||||||||||||||||||||||||||||
Ivy Value Fund | IYVAX | IYVBX | IYVCX | IVVEX | IYAIX | IVALX | IYVLX | IYVYX |
IVY INVESTMENTS® 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.
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This report is submitted for the general information of the shareholders of Ivy Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by a current Ivy Funds prospectus, or summary prospectus, and current performance information, including current Lipper ranking information.
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PRESIDENT’S LETTER | IVY FUNDS |
SEPTEMBER 30, 2017 (UNAUDITED) | ||
Philip J. Sanders, CFA |
Dear Shareholder,
Over the past six months, investors have endured concerns about global economic growth, the level of interest rates, fluctuation in oil prices and transition to a new U.S. presidential administration. Following the election, domestic equity markets rose sharply and bond yields saw a slight rise, with both trends carrying into the third quarter of 2017. See the table for a fiscal year-over-year comparison of some common market metrics.
Many investors may be unsettled by the prospect that continued change — in leadership of key countries around the world, in government policy, in interest rate levels — will contribute to market volatility and general uncertainty. While that may be true at times, we believe it is important to stay focused on the fundamentals and merits of sectors, industries and companies when making investment decisions. Those fundamentals historically have tended to outweigh external factors such as government policies and regulations. While government policies can affect every business and investor, we think the innovation and management skill within individual companies ultimately drive long-term stock prices.
By the end of your funds’ semi-annual fiscal period, the U.S. economy remained fundamentally sound, supported primarily by the U.S. consumer, who is benefitting from lower energy prices, lower inflation in general and an improved labor market. Overall, the global economy has improved over the past year. In particular, economic growth in the eurozone has accelerated, benefitting from domestic policy stimulus and improving external demand.
The U.S. Federal Reserve (Fed) has hiked interest rates four times since late 2015. We think the Fed will raise rates again in December 2017 and two more times in 2018. The Fed also recently announced that it would begin to reduce its balance sheet starting October 2017 by allowing maturing Treasury and mortgage-backed securities to roll off. We think most financial markets already are pricing the drawdown into their projections and do not expect major volatility as a result of the Fed’s actions. We believe job growth and inflation will be the most important
determinants in the direction of long-term central bank policy. Overseas, a better economic outlook has caused the European Central Bank to consider adjusting its policies.
While challenges remain, we see potential catalysts for growth in several areas and industries and our team continues to seek investment opportunities around the globe.
Economic Snapshot
9/30/2017 | 3/31/2017 | |||||||
S&P 500 Index | 2,519.36 | 2,362.72 | ||||||
MSCI EAFE Index | 1,973.81 | 1,792.98 | ||||||
10-Year Treasury Yield | 2.33% | 2.40% | ||||||
U.S. unemployment rate | 4.2% | 4.5% | ||||||
30-year fixed mortgage rate | 3.83% | 4.14% | ||||||
Oil price per barrel | $ | 51.67 | $ | 50.60 |
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 the Ivy Funds and are current only through the end of the period of the report, as stated on the cover. The President’s views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.
2017 | SEMIANNUAL REPORT | 3 |
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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, 2017.
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 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy Advantus Bond Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,028.00 | $ | 5.27 | $ | 1,000 | $ | 1,019.84 | $ | 5.25 | 1.04% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,023.00 | $ | 10.22 | $ | 1,000 | $ | 1,015.00 | $ | 10.18 | 2.01% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,024.40 | $ | 8.91 | $ | 1,000 | $ | 1,016.27 | $ | 8.87 | 1.75% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,028.00 | $ | 5.27 | $ | 1,000 | $ | 1,019.87 | $ | 5.25 | 1.04% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,030.60 | $ | 2.74 | $ | 1,000 | $ | 1,022.36 | $ | 2.73 | 0.54% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,030.60 | $ | 2.74 | $ | 1,000 | $ | 1,022.36 | $ | 2.73 | 0.54% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,026.70 | $ | 6.59 | $ | 1,000 | $ | 1,018.59 | $ | 6.56 | 1.29% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,028.50 | $ | 4.87 | $ | 1,000 | $ | 1,020.31 | $ | 4.85 | 0.95% |
See footnotes on page 11.
4 | SEMIANNUAL REPORT | 2017 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES | IVY FUNDS |
(UNAUDITED)
Actual(1) | Hypothetical(2) | Annualized Expense Ratio Based on the Six-Month Period | ||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy Core Equity Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,082.70 | $ | 6.04 | $ | 1,000 | $ | 1,019.28 | $ | 5.86 | 1.15% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,077.90 | $ | 10.91 | $ | 1,000 | $ | 1,014.56 | $ | 10.58 | 2.10% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,078.70 | $ | 9.98 | $ | 1,000 | $ | 1,015.46 | $ | 9.67 | 1.92% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,082.20 | $ | 5.93 | $ | 1,000 | $ | 1,019.38 | $ | 5.76 | 1.13% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,084.60 | $ | 4.38 | $ | 1,000 | $ | 1,020.83 | $ | 4.24 | 0.84% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,085.20 | $ | 3.96 | $ | 1,000 | $ | 1,021.23 | $ | 3.84 | 0.77% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,080.90 | $ | 7.91 | $ | 1,000 | $ | 1,017.48 | $ | 7.67 | 1.51% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,084.90 | $ | 4.38 | $ | 1,000 | $ | 1,020.83 | $ | 4.24 | 0.84% | |||||||||||||||
Ivy Cundill Global Value Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,056.60 | $ | 8.23 | $ | 1,000 | $ | 1,017.03 | $ | 8.07 | 1.60% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,050.10 | $ | 15.27 | $ | 1,000 | $ | 1,010.19 | $ | 14.98 | 2.97% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,054.00 | $ | 11.30 | $ | 1,000 | $ | 1,014.12 | $ | 11.08 | 2.18% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,059.30 | $ | 6.07 | $ | 1,000 | $ | 1,019.18 | $ | 5.96 | 1.18% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,060.30 | $ | 5.15 | $ | 1,000 | $ | 1,020.10 | $ | 5.05 | 0.99% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,056.00 | $ | 8.94 | $ | 1,000 | $ | 1,016.40 | $ | 8.77 | 1.73% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,057.50 | $ | 7.20 | $ | 1,000 | $ | 1,018.08 | $ | 7.06 | 1.39% | |||||||||||||||
Ivy Dividend Opportunities Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,066.90 | $ | 6.51 | $ | 1,000 | $ | 1,018.75 | $ | 6.36 | 1.26% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,062.50 | $ | 10.52 | $ | 1,000 | $ | 1,014.82 | $ | 10.28 | 2.04% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,062.50 | $ | 10.11 | $ | 1,000 | $ | 1,015.29 | $ | 9.87 | 1.95% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,067.30 | $ | 5.89 | $ | 1,000 | $ | 1,019.33 | $ | 5.76 | 1.14% | (4) | ||||||||||||||
Class I | $ | 1,000 | $ | 1,068.30 | $ | 5.07 | $ | 1,000 | $ | 1,020.18 | $ | 4.95 | 0.97% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,069.10 | $ | 4.24 | $ | 1,000 | $ | 1,021.01 | $ | 4.14 | 0.81% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,065.00 | $ | 8.05 | $ | 1,000 | $ | 1,017.27 | $ | 7.87 | 1.55% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,066.60 | $ | 6.20 | $ | 1,000 | $ | 1,019.03 | $ | 6.06 | 1.20% | |||||||||||||||
Ivy Emerging Markets Equity Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,179.40 | $ | 8.06 | $ | 1,000 | $ | 1,017.63 | $ | 7.47 | 1.49% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,173.50 | $ | 13.58 | $ | 1,000 | $ | 1,012.62 | $ | 12.58 | 2.49% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,174.70 | $ | 11.74 | $ | 1,000 | $ | 1,014.24 | $ | 10.88 | 2.16% | |||||||||||||||
Class E**** | $ | 1,000 | $ | 1,180.80 | $ | 6.76 | $ | 1,000 | $ | 1,018.90 | $ | 6.26 | 1.23% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,182.00 | $ | 5.46 | $ | 1,000 | $ | 1,020.10 | $ | 5.05 | 0.99% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,182.20 | $ | 5.35 | $ | 1,000 | $ | 1,020.19 | $ | 4.95 | 0.97% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,178.30 | $ | 9.37 | $ | 1,000 | $ | 1,016.43 | $ | 8.67 | 1.73% | |||||||||||||||
Class T***** | $ | 1,000 | $ | 1,114.20 | $ | 6.45 | $ | 1,000 | $ | 1,018.95 | $ | 6.16 | 1.21% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,180.10 | $ | 7.52 | $ | 1,000 | $ | 1,018.14 | $ | 6.96 | 1.38% |
See footnotes on page 11.
2017 | SEMIANNUAL REPORT | 5 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES | IVY FUNDS |
(UNAUDITED)
Actual(1) | Hypothetical(2) | Annualized Expense Ratio Based on the Six-Month Period | ||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy European Opportunities Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,146.90 | $ | 8.91 | $ | 1,000 | $ | 1,016.78 | $ | 8.37 | 1.66% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,140.50 | $ | 14.77 | $ | 1,000 | $ | 1,011.27 | $ | 13.88 | 2.76% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,142.90 | $ | 12.32 | $ | 1,000 | $ | 1,013.53 | $ | 11.58 | 2.31% | |||||||||||||||
Class E**** | $ | 1,000 | $ | 1,148.60 | $ | 7.09 | $ | 1,000 | $ | 1,018.51 | $ | 6.66 | 1.31% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,149.40 | $ | 6.56 | $ | 1,000 | $ | 1,018.92 | $ | 6.16 | 1.23% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,150.10 | $ | 5.59 | $ | 1,000 | $ | 1,019.82 | $ | 5.25 | 1.03% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,146.00 | $ | 9.66 | $ | 1,000 | $ | 1,016.09 | $ | 9.07 | 1.79% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,147.80 | $ | 7.73 | $ | 1,000 | $ | 1,017.87 | $ | 7.26 | 1.44% | |||||||||||||||
Ivy Global Bond Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,024.90 | $ | 5.16 | $ | 1,000 | $ | 1,020.10 | $ | 5.05 | 1.01% | (5) | ||||||||||||||
Class B** | $ | 1,000 | $ | 1,021.10 | $ | 8.89 | $ | 1,000 | $ | 1,016.34 | $ | 8.77 | 1.76% | (6) | ||||||||||||||
Class C | $ | 1,000 | $ | 1,021.00 | $ | 8.99 | $ | 1,000 | $ | 1,016.34 | $ | 8.77 | 1.77% | (7) | ||||||||||||||
Class I | $ | 1,000 | $ | 1,026.30 | $ | 3.85 | $ | 1,000 | $ | 1,021.36 | $ | 3.74 | 0.77% | (8) | ||||||||||||||
Class N*** | $ | 1,000 | $ | 1,026.20 | $ | 3.85 | $ | 1,000 | $ | 1,021.27 | $ | 3.84 | 0.76% | (8) | ||||||||||||||
Class R | $ | 1,000 | $ | 1,022.40 | $ | 7.58 | $ | 1,000 | $ | 1,017.53 | $ | 7.57 | 1.50% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,024.90 | $ | 5.16 | $ | 1,000 | $ | 1,020.10 | $ | 5.05 | 1.02% | (9) | ||||||||||||||
Ivy Global Equity Income Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,101.30 | $ | 6.93 | $ | 1,000 | $ | 1,018.49 | $ | 6.66 | 1.30% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,098.70 | $ | 10.18 | $ | 1,000 | $ | 1,015.34 | $ | 9.77 | 1.94% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,098.60 | $ | 10.28 | $ | 1,000 | $ | 1,015.31 | $ | 9.88 | 1.95% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,103.90 | $ | 5.26 | $ | 1,000 | $ | 1,020.10 | $ | 5.05 | 0.99% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,104.80 | $ | 4.31 | $ | 1,000 | $ | 1,020.97 | $ | 4.14 | 0.82% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,100.70 | $ | 8.19 | $ | 1,000 | $ | 1,017.22 | $ | 7.87 | 1.57% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,101.90 | $ | 6.31 | $ | 1,000 | $ | 1,019.11 | $ | 6.06 | 1.19% | |||||||||||||||
Ivy Global Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,100.60 | $ | 7.46 | $ | 1,000 | $ | 1,017.94 | $ | 7.16 | 1.42% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,095.00 | $ | 12.99 | $ | 1,000 | $ | 1,012.65 | $ | 12.48 | 2.48% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,096.60 | $ | 11.32 | $ | 1,000 | $ | 1,014.23 | $ | 10.88 | 2.16% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,102.00 | $ | 6.41 | $ | 1,000 | $ | 1,019.01 | $ | 6.16 | 1.21% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,102.40 | $ | 5.89 | $ | 1,000 | $ | 1,019.46 | $ | 5.65 | 1.12% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,103.10 | $ | 5.05 | $ | 1,000 | $ | 1,020.30 | $ | 4.85 | 0.95% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,099.00 | $ | 8.92 | $ | 1,000 | $ | 1,016.54 | $ | 8.57 | 1.70% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,100.80 | $ | 7.14 | $ | 1,000 | $ | 1,018.25 | $ | 6.86 | 1.36% |
See footnotes on page 11.
6 | SEMIANNUAL REPORT | 2017 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES | IVY FUNDS |
(UNAUDITED)
Actual(1) | Hypothetical(2) | Annualized Expense Ratio Based on the Six-Month Period | ||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy Global Income Allocation Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,046.50 | $ | 6.45 | $ | 1,000 | $ | 1,018.80 | $ | 6.36 | 1.25% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,041.60 | $ | 10.92 | $ | 1,000 | $ | 1,014.42 | $ | 10.78 | 2.13% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,043.10 | $ | 9.70 | $ | 1,000 | $ | 1,015.61 | $ | 9.57 | 1.89% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,045.60 | $ | 6.75 | $ | 1,000 | $ | 1,018.45 | $ | 6.66 | 1.32% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,047.90 | $ | 4.81 | $ | 1,000 | $ | 1,020.36 | $ | 4.75 | 0.94% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,048.70 | $ | 3.99 | $ | 1,000 | $ | 1,021.18 | $ | 3.94 | 0.78% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,044.50 | $ | 7.87 | $ | 1,000 | $ | 1,017.38 | $ | 7.77 | 1.53% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,046.90 | $ | 6.04 | $ | 1,000 | $ | 1,019.20 | $ | 5.96 | 1.17% | |||||||||||||||
Ivy Government Money Market Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,001.10 | $ | 4.00 | $ | 1,000 | $ | 1,021.08 | $ | 4.04 | 0.80% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,000.00 | $ | 5.00 | $ | 1,000 | $ | 1,020.11 | $ | 5.05 | 0.99% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,000.00 | $ | 5.00 | $ | 1,000 | $ | 1,020.07 | $ | 5.05 | 1.00% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,001.00 | $ | 4.10 | $ | 1,000 | $ | 1,020.94 | $ | 4.14 | 0.82% | |||||||||||||||
Class N***** | $ | 1,000 | $ | 1,001.30 | $ | 3.00 | $ | 1,000 | $ | 1,022.07 | $ | 3.03 | 0.60% | |||||||||||||||
Ivy High Income Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,039.00 | $ | 4.89 | $ | 1,000 | $ | 1,020.31 | $ | 4.85 | 0.95% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,035.00 | $ | 8.75 | $ | 1,000 | $ | 1,016.47 | $ | 8.67 | 1.72% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,035.30 | $ | 8.55 | $ | 1,000 | $ | 1,016.71 | $ | 8.47 | 1.67% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,037.70 | $ | 6.11 | $ | 1,000 | $ | 1,019.10 | $ | 6.06 | 1.19% | (10) | ||||||||||||||
Class I | $ | 1,000 | $ | 1,040.20 | $ | 3.67 | $ | 1,000 | $ | 1,021.45 | $ | 3.64 | 0.72% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,041.10 | $ | 2.86 | $ | 1,000 | $ | 1,022.23 | $ | 2.83 | 0.57% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,037.10 | $ | 6.62 | $ | 1,000 | $ | 1,018.53 | $ | 6.56 | 1.30% | |||||||||||||||
Class T***** | $ | 1,000 | $ | 1,016.40 | $ | 4.13 | $ | 1,000 | $ | 1,020.96 | $ | 4.14 | 0.81% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,039.10 | $ | 4.89 | $ | 1,000 | $ | 1,020.30 | $ | 4.85 | 0.95% | |||||||||||||||
Ivy International Core Equity Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,091.30 | $ | 6.59 | $ | 1,000 | $ | 1,018.73 | $ | 6.36 | 1.26% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,086.40 | $ | 11.27 | $ | 1,000 | $ | 1,014.30 | $ | 10.88 | 2.15% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,087.40 | $ | 10.12 | $ | 1,000 | $ | 1,015.38 | $ | 9.77 | 1.93% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,090.70 | $ | 6.79 | $ | 1,000 | $ | 1,018.53 | $ | 6.56 | 1.30% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,093.00 | $ | 4.92 | $ | 1,000 | $ | 1,020.33 | $ | 4.75 | 0.95% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,093.80 | $ | 4.19 | $ | 1,000 | $ | 1,021.08 | $ | 4.04 | 0.80% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,089.60 | $ | 8.04 | $ | 1,000 | $ | 1,017.35 | $ | 7.77 | 1.54% | |||||||||||||||
Class T***** | $ | 1,000 | $ | 1,034.30 | $ | 5.49 | $ | 1,000 | $ | 1,019.83 | $ | 5.45 | 1.08% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,091.20 | $ | 6.27 | $ | 1,000 | $ | 1,019.08 | $ | 6.06 | 1.19% |
See footnotes on page 11.
2017 | SEMIANNUAL REPORT | 7 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES | IVY FUNDS |
(UNAUDITED)
Actual(1) | Hypothetical(2) | Annualized Expense Ratio Based on the Six-Month Period | ||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy Large Cap Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,117.90 | $ | 6.14 | $ | 1,000 | $ | 1,019.29 | $ | 5.86 | 1.15% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,113.30 | $ | 10.78 | $ | 1,000 | $ | 1,014.91 | $ | 10.28 | 2.03% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,114.10 | $ | 9.94 | $ | 1,000 | $ | 1,015.70 | $ | 9.47 | 1.87% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,118.00 | $ | 6.14 | $ | 1,000 | $ | 1,019.29 | $ | 5.86 | 1.15% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,119.00 | $ | 4.66 | $ | 1,000 | $ | 1,020.65 | $ | 4.45 | 0.88% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,120.40 | $ | 3.82 | $ | 1,000 | $ | 1,021.43 | $ | 3.64 | 0.72% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,115.40 | $ | 7.83 | $ | 1,000 | $ | 1,017.70 | $ | 7.47 | 1.47% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,118.20 | $ | 5.61 | $ | 1,000 | $ | 1,019.75 | $ | 5.35 | 1.06% | |||||||||||||||
Ivy Limited-Term Bond Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,012.40 | $ | 4.53 | $ | 1,000 | $ | 1,020.61 | $ | 4.55 | 0.89% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,007.70 | $ | 9.14 | $ | 1,000 | $ | 1,015.95 | $ | 9.17 | 1.82% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,008.50 | $ | 8.34 | $ | 1,000 | $ | 1,016.76 | $ | 8.37 | 1.66% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,011.90 | $ | 4.93 | $ | 1,000 | $ | 1,020.15 | $ | 4.95 | 0.98% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,013.60 | $ | 3.32 | $ | 1,000 | $ | 1,021.79 | $ | 3.34 | 0.65% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,014.40 | $ | 2.52 | $ | 1,000 | $ | 1,022.57 | $ | 2.53 | 0.50% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,010.50 | $ | 6.33 | $ | 1,000 | $ | 1,018.75 | $ | 6.36 | 1.26% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,012.40 | $ | 4.53 | $ | 1,000 | $ | 1,020.61 | $ | 4.55 | 0.89% | |||||||||||||||
Ivy Managed International Opportunities Fund(3) |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,109.60 | $ | 2.64 | $ | 1,000 | $ | 1,022.61 | $ | 2.53 | 0.49% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,106.30 | $ | 7.37 | $ | 1,000 | $ | 1,018.06 | $ | 7.06 | 1.40% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,106.90 | $ | 6.74 | $ | 1,000 | $ | 1,018.67 | $ | 6.46 | 1.28% | |||||||||||||||
Class E**** | $ | 1,000 | $ | 1,110.50 | $ | 2.11 | $ | 1,000 | $ | 1,023.11 | $ | 2.02 | 0.39% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,110.10 | $ | 0.84 | $ | 1,000 | $ | 1,024.26 | $ | 0.81 | 0.16% | |||||||||||||||
Class N***** | $ | 1,000 | $ | 1,056.40 | $ | 0.82 | $ | 1,000 | $ | 1,024.30 | $ | 0.81 | 0.14% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,109.00 | $ | 3.48 | $ | 1,000 | $ | 1,021.78 | $ | 3.34 | 0.66% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,109.60 | $ | 2.00 | $ | 1,000 | $ | 1,023.17 | $ | 1.92 | 0.38% | |||||||||||||||
Ivy Micro Cap Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,053.70 | $ | 8.42 | $ | 1,000 | $ | 1,016.85 | $ | 8.27 | 1.64% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,049.10 | $ | 13.22 | $ | 1,000 | $ | 1,012.19 | $ | 12.98 | 2.57% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,049.60 | $ | 12.40 | $ | 1,000 | $ | 1,012.99 | $ | 12.18 | 2.41% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,055.60 | $ | 6.58 | $ | 1,000 | $ | 1,018.70 | $ | 6.46 | 1.27% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,056.90 | $ | 5.66 | $ | 1,000 | $ | 1,019.59 | $ | 5.55 | 1.09% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,052.70 | $ | 9.44 | $ | 1,000 | $ | 1,015.84 | $ | 9.27 | 1.84% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,054.80 | $ | 7.60 | $ | 1,000 | $ | 1,017.62 | $ | 7.47 | 1.49% |
See footnotes on page 11.
8 | SEMIANNUAL REPORT | 2017 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES | IVY FUNDS |
(UNAUDITED)
Actual(1) | Hypothetical(2) | Annualized Expense Ratio Based on the Six-Month Period | ||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy Mid Cap Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,110.50 | $ | 6.96 | $ | 1,000 | $ | 1,018.50 | $ | 6.66 | 1.31% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,106.30 | $ | 11.06 | $ | 1,000 | $ | 1,014.57 | $ | 10.58 | 2.09% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,106.70 | $ | 10.74 | $ | 1,000 | $ | 1,014.88 | $ | 10.28 | 2.03% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,110.60 | $ | 6.86 | $ | 1,000 | $ | 1,018.54 | $ | 6.56 | �� | 1.30% | ||||||||||||||
Class I | $ | 1,000 | $ | 1,112.00 | $ | 5.39 | $ | 1,000 | $ | 1,019.92 | $ | 5.15 | 1.03% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,113.20 | $ | 4.65 | $ | 1,000 | $ | 1,020.65 | $ | 4.45 | 0.88% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,108.80 | $ | 8.65 | $ | 1,000 | $ | 1,016.88 | $ | 8.27 | 1.63% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,110.80 | $ | 6.75 | $ | 1,000 | $ | 1,018.69 | $ | 6.46 | 1.27% | |||||||||||||||
Ivy Mid Cap Income Opportunities Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,028.90 | $ | 6.90 | $ | 1,000 | $ | 1,018.30 | $ | 6.86 | 1.35% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,026.10 | $ | 10.54 | $ | 1,000 | $ | 1,014.69 | $ | 10.48 | 2.07% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,030.70 | $ | 5.99 | $ | 1,000 | $ | 1,019.13 | $ | 5.96 | 1.18% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,030.50 | $ | 5.38 | $ | 1,000 | $ | 1,019.80 | $ | 5.35 | 1.05% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,032.00 | $ | 4.78 | $ | 1,000 | $ | 1,020.33 | $ | 4.75 | 0.95% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,028.30 | $ | 8.52 | $ | 1,000 | $ | 1,016.69 | $ | 8.47 | 1.67% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,029.80 | $ | 6.90 | $ | 1,000 | $ | 1,018.30 | $ | 6.86 | 1.35% | |||||||||||||||
Ivy Municipal Bond Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,024.00 | $ | 5.16 | $ | 1,000 | $ | 1,019.99 | $ | 5.15 | 1.01% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,020.20 | $ | 8.99 | $ | 1,000 | $ | 1,016.19 | $ | 8.97 | 1.77% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,020.20 | $ | 8.99 | $ | 1,000 | $ | 1,016.14 | $ | 8.97 | 1.78% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,025.10 | $ | 4.25 | $ | 1,000 | $ | 1,020.90 | $ | 4.24 | 0.83% | |||||||||||||||
Class N***** | $ | 1,000 | $ | 1,010.90 | $ | 3.42 | $ | 1,000 | $ | 1,021.69 | $ | 3.44 | 0.71% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,023.90 | $ | 5.26 | $ | 1,000 | $ | 1,019.99 | $ | 5.15 | 1.03% | (11) | ||||||||||||||
Ivy Municipal High Income Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,020.80 | $ | 4.45 | $ | 1,000 | $ | 1,020.63 | $ | 4.45 | 0.88% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,017.30 | $ | 8.17 | $ | 1,000 | $ | 1,016.92 | $ | 8.17 | 1.62% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,017.50 | $ | 7.97 | $ | 1,000 | $ | 1,017.12 | $ | 7.97 | 1.58% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,021.70 | $ | 3.44 | $ | 1,000 | $ | 1,021.64 | $ | 3.44 | 0.68% | |||||||||||||||
Class N***** | $ | 1,000 | $ | 1,006.30 | $ | 2.91 | $ | 1,000 | $ | 1,022.17 | $ | 2.93 | 0.58% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,020.80 | $ | 4.45 | $ | 1,000 | $ | 1,020.66 | $ | 4.45 | 0.88% |
See footnotes on page 11.
2017 | SEMIANNUAL REPORT | 9 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES | IVY FUNDS |
(UNAUDITED)
Actual(1) | Hypothetical(2) | Annualized Expense Ratio Based on the Six-Month Period | ||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | Beginning Account Value 3-31-17 | Ending Account Value 9-30-17 | Expenses Paid During Period* | ||||||||||||||||||||||
Ivy Small Cap Core Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,057.20 | $ | 7.61 | $ | 1,000 | $ | 1,017.70 | $ | 7.47 | 1.47% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,051.20 | $ | 12.61 | $ | 1,000 | $ | 1,012.77 | $ | 12.38 | 2.45% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,053.30 | $ | 11.09 | $ | 1,000 | $ | 1,014.25 | $ | 10.88 | 2.16% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,058.40 | $ | 6.18 | $ | 1,000 | $ | 1,019.08 | $ | 6.06 | 1.19% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,058.90 | $ | 5.66 | $ | 1,000 | $ | 1,019.53 | $ | 5.55 | 1.11% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,059.50 | $ | 4.84 | $ | 1,000 | $ | 1,020.33 | $ | 4.75 | 0.94% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,056.30 | $ | 8.64 | $ | 1,000 | $ | 1,016.64 | $ | 8.47 | 1.68% | |||||||||||||||
Class T***** | $ | 1,000 | $ | 1,039.50 | $ | 6.02 | $ | 1,000 | $ | 1,019.14 | $ | 5.96 | 1.18% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,057.30 | $ | 6.99 | $ | 1,000 | $ | 1,018.23 | $ | 6.86 | 1.36% | |||||||||||||||
Ivy Small Cap Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,095.20 | $ | 7.23 | $ | 1,000 | $ | 1,018.14 | $ | 6.96 | 1.38% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,090.80 | $ | 11.60 | $ | 1,000 | $ | 1,013.93 | $ | 11.18 | 2.22% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,091.00 | $ | 10.77 | $ | 1,000 | $ | 1,014.77 | $ | 10.38 | 2.05% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,094.80 | $ | 7.33 | $ | 1,000 | $ | 1,018.08 | $ | 7.06 | 1.39% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,096.50 | $ | 5.66 | $ | 1,000 | $ | 1,019.67 | $ | 5.45 | 1.08% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,097.50 | $ | 4.82 | $ | 1,000 | $ | 1,020.47 | $ | 4.65 | 0.92% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,093.10 | $ | 8.69 | $ | 1,000 | $ | 1,016.72 | $ | 8.37 | 1.67% | |||||||||||||||
Class T***** | $ | 1,000 | $ | 1,036.20 | $ | 6.21 | $ | 1,000 | $ | 1,018.92 | $ | 6.16 | 1.23% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,095.50 | $ | 6.92 | $ | 1,000 | $ | 1,018.46 | $ | 6.66 | 1.32% | |||||||||||||||
Ivy Tax-Managed Equity Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,099.50 | $ | 6.30 | $ | 1,000 | $ | 1,019.02 | $ | 6.06 | 1.21% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,095.40 | $ | 10.06 | $ | 1,000 | $ | 1,015.50 | $ | 9.67 | 1.91% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,095.20 | $ | 10.48 | $ | 1,000 | $ | 1,015.10 | $ | 10.08 | 1.99% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,100.40 | $ | 5.36 | $ | 1,000 | $ | 1,020.01 | $ | 5.15 | 1.01% | |||||||||||||||
Class N***** | $ | 1,000 | $ | 1,061.30 | $ | 4.33 | $ | 1,000 | $ | 1,020.82 | $ | 4.24 | 0.85% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,099.30 | $ | 6.30 | $ | 1,000 | $ | 1,019.02 | $ | 6.06 | 1.21% | |||||||||||||||
Ivy Value Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,032.10 | $ | 6.60 | $ | 1,000 | $ | 1,018.55 | $ | 6.56 | 1.30% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,027.50 | $ | 11.25 | $ | 1,000 | $ | 1,013.97 | $ | 11.18 | 2.21% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,028.70 | $ | 9.94 | $ | 1,000 | $ | 1,015.31 | $ | 9.87 | 1.95% | |||||||||||||||
Class E**** | $ | 1,000 | $ | 1,033.30 | $ | 5.39 | $ | 1,000 | $ | 1,019.75 | $ | 5.35 | 1.06% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,033.70 | $ | 4.98 | $ | 1,000 | $ | 1,020.20 | $ | 4.95 | 0.97% | |||||||||||||||
Class N*** | $ | 1,000 | $ | 1,034.80 | $ | 4.07 | $ | 1,000 | $ | 1,021.04 | $ | 4.04 | 0.80% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,031.10 | $ | 8.02 | $ | 1,000 | $ | 1,017.21 | $ | 7.97 | 1.57% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,032.10 | $ | 6.50 | $ | 1,000 | $ | 1,018.64 | $ | 6.46 | 1.28% |
See footnotes on page 11.
10 | SEMIANNUAL REPORT | 2017 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES | IVY FUNDS |
(UNAUDITED)
* | 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, 2017, 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. |
*** | Effective March 3, 2017 Class R6 has been renamed Class N. |
**** | Class share is closed to investment. |
***** | Actual inception date for this share class is 7-5-17 (the date on which shares were first acquired by shareholders). The calculations are based on 88 days in the period ended September 30, 2017. |
(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. |
(4) | Annualized expense ratio based on the period excluding reorganization expenses was 1.13%. |
(5) | Annualized expense ratio based on the period excluding reorganization expenses was 0.99%. |
(6) | Annualized expense ratio based on the period excluding reorganization expenses was 1.74%. |
(7) | Annualized expense ratio based on the period excluding reorganization expenses was 1.74%. |
(8) | Annualized expense ratio based on the period excluding reorganization expenses was 0.74%. |
(9) | Annualized expense ratio based on the period excluding reorganization expenses was 0.99%. |
(10) | Annualized expense ratio based on the period excluding reorganization expenses was 1.11%. |
(11) | Annualized expense ratio based on the period excluding reorganization expenses was 1.01%. |
The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads or exchange fees.
2017 | SEMIANNUAL REPORT | 11 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY ADVANTUS BOND FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 0.8% | |||
Bonds | 96.1% | |||
Corporate Debt Securities | 42.0% | |||
United States Government and Government Agency Obligations | 32.8% | |||
Asset-Backed Securities | 12.2% | |||
Mortgage-Backed Securities | 8.1% | |||
Municipal Bonds – Taxable | 1.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 3.1% |
Lipper Rankings
Category: Corporate Debt Funds A Rated | Rank | Percentile | ||||
1 Year | 12/46 | 26 | ||||
3 Year | 20/45 | 44 | ||||
5 Year | 18/39 | 45 | ||||
10 Year | 24/33 | 71 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Quality Weightings
Investment Grade | 80.6% | |||
AAA | 5.4% | |||
AA | 31.3% | |||
A | 8.5% | |||
BBB | 35.4% | |||
Non-Investment Grade | 15.5% | |||
BB | 11.8% | |||
B | 0.3% | |||
CCC | 0.1% | |||
Below CCC | 0.0% | |||
Non-rated | 3.3% | |||
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities | 3.9% |
Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s. For securities not rated by Moody’s, ratings are obtained from Fitch. 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. |
12 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ADVANTUS BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
PREFERRED STOCKS | Shares | Value | ||||||
Financials |
| |||||||
Diversified Banks – 0.5% |
| |||||||
Wells Fargo & Co., 5.850% | 173 | $ | 4,725 | |||||
|
| |||||||
Total Financials – 0.5% |
| 4,725 | ||||||
Real Estate | ||||||||
Health Care REITs – 0.3% | ||||||||
Ventas, Inc., 5.450% | 100 | 2,546 | ||||||
|
| |||||||
Total Real Estate – 0.3% |
| 2,546 | ||||||
TOTAL PREFERRED STOCKS – 0.8% |
| $ | 7,271 | |||||
(Cost: $6,830) | ||||||||
ASSET-BACKED SECURITIES | Principal | |||||||
Air Canada Enhanced Equipment Trust, Series 2015-2, Class AA, | ||||||||
6.625%, 5–15–18 (A) | $ | 460 | 471 | |||||
Air Canada Pass Through Certificates, Series 2015-1, Class C, | ||||||||
5.000%, 3–15–20 (A) | 5,030 | 5,143 | ||||||
America West Airlines, Inc., Pass Through Certificates, Series 1999-1, | ||||||||
7.930%, 1–2–19 | 367 | 378 | ||||||
America West Airlines, Inc., Pass Through Certificates, Series 2000-1, | ||||||||
8.057%, 7–2–20 | 662 | 745 | ||||||
American Airlines Class B Pass Through Certificates, Series 2013-2, | ||||||||
5.600%, 7–15–20 (A) | 2,618 | 2,742 | ||||||
American Airlines Class B Pass Through Certificates, Series 2016-3, | ||||||||
3.750%, 10–15–25 | 4,000 | 4,012 | ||||||
American Airlines Pass-Through Trusts, Pass-Through Certificates, Series 2013-1, | ||||||||
3.700%, 5–1–23 | 1,613 | 1,617 | ||||||
American Airlines Pass-Through Trusts, Pass-Through Certificates, Series 2017-1B, | ||||||||
4.950%, 2–15–25 | 500 | 523 | ||||||
American Airlines, Inc., Class A Pass Through Certificates, Series 2013-2, | ||||||||
5.625%, 1–15–21 (A) | 4,979 | 5,240 | ||||||
Aventura Mall Trust, Series 2013-AVM, Class B, | ||||||||
3.867%, 12–5–32 (A) | 3,600 | 3,720 | ||||||
BNSF Funding Trust I, | ||||||||
6.613%, 12–15–55 | 8,292 | 9,515 | ||||||
Capital One Multi-Asset Execution Trust, Series 2004-B3 (1-Month U.S. LIBOR plus 73 bps), | ||||||||
1.964%, 1–18–22 (B) | 2,000 | 2,007 | ||||||
CCG Receivables Trust, Series 2015-1, Class A3, | ||||||||
2.750%, 11–14–23 (A) | 3,250 | 3,236 |
ASSET-BACKED SECURITIES (Continued) | Principal | Value | ||||||
Chesapeake Funding II LLC 2017-2A, Class D: | ||||||||
3.710%, 5–15–29 (A) | $ | 800 | $ | 806 | ||||
3.380%, 8–15–29 (A) | 2,500 | 2,491 | ||||||
Continental Airlines Pass Through Certificates, Series 2001-1 A-1, | ||||||||
8.048%, 11–1–20 | 452 | 500 | ||||||
Continental Airlines Pass Through Certificates, Series 2009-2, | ||||||||
7.250%, 11–10–19 | 1,165 | 1,280 | ||||||
Continental Airlines Pass Through Certificates, Series 2010-1B, | ||||||||
6.000%, 1–12–19 | 838 | 863 | ||||||
Continental Airlines, Inc. Class B Pass Through Certificates, Series 2012-1B, | ||||||||
6.250%, 4–11–20 | 1,513 | 1,596 | ||||||
CVS Caremark Corp. Pass-Through Trust: | ||||||||
6.036%, 12–10–28 | 3,495 | 3,949 | ||||||
6.943%, 1–10–30 | 2,893 | 3,428 | ||||||
Delta Air Lines, Inc. Class A Pass Through Certificates, Series 2010-2, | ||||||||
4.250%, 7–30–23 | 2,103 | 2,191 | ||||||
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1A, | ||||||||
4.750%, 5–7–20 | 1,251 | 1,307 | ||||||
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1B, | ||||||||
6.875%, 5–7–19 (A) | 3,477 | 3,669 | ||||||
Earnest Student Loan Program LLC, Series 2016-B, Class A2: | ||||||||
8.250%, 4–17–23 (A) | 7,000 | 7,435 | ||||||
3.020%, 5–25–34 (A) | 2,380 | 2,392 | ||||||
Fan Engine Securitization Ltd., Series 2013-1X, | ||||||||
3.000%, 10–15–19 (A)(C) | 446 | 441 | ||||||
Flagship Credit Auto Trust, Series 2016-1, Class D, | ||||||||
8.590%, 5–15–23 (A) | 4,200 | 4,557 | ||||||
Foursight Capital Automobile Receivables Trust, Series 2016-1, Class B: | ||||||||
2.340%, 1–15–21 (A) | 1,185 | 1,186 | ||||||
3.710%, 1–18–22 (A) | 3,202 | 3,175 | ||||||
Hawaiian Airlines Pass Through Certificates, Series 2013-1, | ||||||||
4.950%, 1–15–22 | 3,660 | 3,770 | ||||||
Hyundai Auto Receivables Trust 2016-B, Class D, | ||||||||
2.680%, 9–15–23 | 2,520 | 2,499 | ||||||
Longtrain Leasing III LLC, Series 2015 A-2, | ||||||||
4.060%, 1–15–45 (A) | 4,000 | 4,081 | ||||||
One Market Plaza Trust, Series 2017-1MKT, | ||||||||
3.614%, 2–10–32 (A) | 4,000 | 4,153 | ||||||
Progress Residential Trust, Series 2017-SFR1, Class D, | ||||||||
3.565%, 8–17–34 (A) | 2,750 | 2,762 |
ASSET-BACKED SECURITIES (Continued) | Principal | Value | ||||||
SBA Tower Trust, Series 2013-1C (GTD by SBA Guarantor LLC and SBA Holdings LLC), | ||||||||
2.240%, 4–10–18 (A) | $ | 3,120 | $ | 3,119 | ||||
SoFi Professional Loan Program LLC, Series 2015-A2, | ||||||||
2.420%, 3–25–30 (A) | 1,104 | 1,105 | ||||||
U.S. Airways, Inc. Class C Pass-Through Certificates, Series 2012-2, | ||||||||
5.450%, 6–3–18 | 3,700 | 3,760 | ||||||
U.S. Airways, Inc., Series 2012-2, Class A, | ||||||||
6.750%, 6–3–21 | 3,176 | 3,509 | ||||||
United Airlines Pass-Through Certificates, Series 2014-1B, | ||||||||
4.750%, 4–11–22 | 938 | 977 | ||||||
United Airlines Pass-Through Certificates, Series 2014-2B, | ||||||||
4.625%, 9–3–22 | 3,922 | 4,069 | ||||||
Virgin Australia 2013-1B Trust, | ||||||||
6.000%, 10–23–20 (A) | 857 | 876 | ||||||
Wheels SPV LLC 2016-1A, Class A3, | ||||||||
1.870%, 5–20–25 (A) | 925 | 922 | ||||||
|
| |||||||
TOTAL ASSET-BACKED SECURITIES – 12.2% |
| $ | 116,217 | |||||
(Cost: $113,920) | ||||||||
CORPORATE DEBT SECURITIES | ||||||||
Consumer Discretionary | ||||||||
Automobile Manufacturers – 0.7% |
| |||||||
Nissan Motor Acceptance Corp., | ||||||||
2.150%, 9–28–20 (A) | 6,375 | 6,381 | ||||||
|
| |||||||
Housewares & Specialties – 0.3% |
| |||||||
Newell Rubbermaid, Inc., | ||||||||
5.000%, 11–15–23 | 2,683 | 2,861 | ||||||
|
| |||||||
Leisure Products – 0.4% |
| |||||||
Hasbro, Inc., | ||||||||
3.500%, 9–15–27 | 4,475 | 4,421 | ||||||
|
| |||||||
Total Consumer Discretionary – 1.4% |
| 13,663 | ||||||
Energy | ||||||||
Integrated Oil & Gas – 0.7% |
| |||||||
National Fuel Gas Co., | ||||||||
3.950%, 9–15–27 | 7,000 | 6,915 | ||||||
|
| |||||||
Oil & Gas Drilling – 0.1% |
| |||||||
Noble Holding International Ltd., | ||||||||
5.750%, 3–16–18 (D) | 350 | 353 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 0.5% |
| |||||||
Enterprise Products Operating L.P. (GTD by Enterprise Products Partners L.P.), | ||||||||
7.034%, 1–15–68 | 4,763 | 4,811 | ||||||
|
|
2017 | SEMIANNUAL REPORT | 13 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ADVANTUS BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Oil & Gas Exploration & Production – 0.6% |
| |||||||
Enterprise Products Operating LLC (GTD by Enterprise Products Partners L.P.) (3-Month U.S. LIBOR plus 277.75 bps), | ||||||||
4.093%, 6–1–67 (B) | $ | 5,750 | $ | 5,581 | ||||
|
| |||||||
Oil & Gas Refining & Marketing – 0.8% |
| |||||||
Marathon Petroleum Corp., | ||||||||
5.850%, 12–15–45 | 2,000 | 2,197 | ||||||
NuStar Logistics L.P. (GTD by NuStar Energy L.P. and NuStar Pipeline Operating Partnership L.P.), | ||||||||
8.150%, 4–15–18 (D) | 3,005 | 3,095 | ||||||
PBF Holding Co. LLC and PBF Finance Corp., | ||||||||
7.250%, 6–15–25 (A) | 2,500 | 2,556 | ||||||
|
| |||||||
7,848 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 5.9% |
| |||||||
Boardwalk Pipelines L.P. (GTD by Boardwalk Pipeline Partners L.P.), | ||||||||
4.950%, 12–15–24 | 4,985 | 5,304 | ||||||
Boston Gas Co., | ||||||||
3.150%, 8–1–27 (A) | 950 | 950 | ||||||
Buckeye Partners L.P., | ||||||||
5.600%, 10–15–44 | 5,231 | 5,448 | ||||||
Cheniere Corpus Christi Holdings LLC: | ||||||||
5.875%, 3–31–25 | 500 | 538 | ||||||
5.125%, 6–30–27 (A) | 2,000 | 2,065 | ||||||
Enbridge Energy Partners L.P., | ||||||||
7.375%, 10–15–45 | 5,000 | 6,438 | ||||||
Enbridge, Inc., | ||||||||
6.000%, 1–15–77 | 2,225 | 2,358 | ||||||
EnLink Midstream Partners L.P., | ||||||||
6.000%, 12–15–65 | 4,400 | 4,403 | ||||||
Gulfstream Natural Gas System LLC, | ||||||||
4.600%, 9–15–25 (A) | 1,975 | 2,130 | ||||||
Regency Energy Partners L.P. and Regency Energy Finance Corp.: | ||||||||
6.500%, 7–15–21 | 3,600 | 3,672 | ||||||
5.875%, 3–1–22 | 3,000 | 3,320 | ||||||
Sabine Pass Liquefaction LLC, | ||||||||
5.750%, 5–15–24 | 3,500 | 3,899 | ||||||
Sunoco Logistics Partners Operations L.P. (GTD by Energy Transfer Partners L.P.), | ||||||||
5.400%, 10–1–47 | 2,750 | 2,799 | ||||||
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.), | ||||||||
6.850%, 2–15–40 | 1,265 | 1,422 | ||||||
TC PipeLines L.P., | ||||||||
3.900%, 5–25–27 | 2,000 | 2,002 | ||||||
Tennessee Gas Pipeline Co., | ||||||||
8.375%, 6–15–32 | 4,000 | 5,157 | ||||||
Tesoro Logistics L.P. and Tesoro Logistics Finance Corp.: | ||||||||
6.125%, 10–15–21 | 1,000 | 1,032 | ||||||
6.375%, 5–1–24 | 250 | 271 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Oil & Gas Storage & Transportation (Continued) |
| |||||||
5.250%, 1–15–25 | $ | 2,500 | $ | 2,678 | ||||
|
| |||||||
55,886 | ||||||||
|
| |||||||
Total Energy – 8.6% |
| 81,394 | ||||||
Financials | ||||||||
Consumer Finance – 3.9% | ||||||||
Capital One Bank USA N.A. (3-Month U.S. LIBOR plus 76.5 bps), | ||||||||
2.082%, 9–13–19 (B) | 9,175 | 9,235 | ||||||
Capital One Financial Corp., Series E, | ||||||||
5.550%, 12–29–49 | 3,570 | 3,726 | ||||||
Discover Bank: | ||||||||
8.700%, 11–18–19 | 458 | 512 | ||||||
3.100%, 6–4–20 | 1,220 | 1,248 | ||||||
3.450%, 7–27–26 | 3,975 | 3,906 | ||||||
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.): | ||||||||
2.400%, 5–9–19 | 1,000 | 1,004 | ||||||
3.500%, 7–10–19 | 1,645 | 1,685 | ||||||
3.950%, 4–13–24 | 3,800 | 3,891 | ||||||
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.) (3-Month U.S. LIBOR plus 127 bps), | ||||||||
2.569%, 10–4–19 (B) | 6,850 | 6,955 | ||||||
Hyundai Capital America, | ||||||||
2.750%, 9–18–20 (A) | 5,000 | 4,995 | ||||||
|
| |||||||
37,157 | ||||||||
|
| |||||||
Diversified Banks – 2.4% |
| |||||||
Bank of America Corp.: | ||||||||
4.000%, 1–22–25 | 3,250 | 3,362 | ||||||
3.950%, 4–21–25 | 1,515 | 1,560 | ||||||
Comerica, Inc., | ||||||||
4.000%, 7–27–25 | 2,150 | 2,219 | ||||||
Compass Bank, | ||||||||
3.875%, 4–10–25 | 5,750 | 5,736 | ||||||
HSBC Holdings plc, | ||||||||
3.262%, 3–13–23 | 3,600 | 3,673 | ||||||
U.S. Bancorp, | ||||||||
5.300%, 12–29–49 | 4,000 | 4,360 | ||||||
Wells Fargo & Co., | ||||||||
3.000%, 10–23–26 | 1,500 | 1,464 | ||||||
|
| |||||||
22,374 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 2.2% |
| |||||||
Charles Schwab Corp. (The), | ||||||||
4.625%, 12–29–49 | 4,200 | 4,305 | ||||||
Goldman Sachs Group, Inc. (The), | ||||||||
5.250%, 7–27–21 | 1,000 | 1,099 | ||||||
Morgan Stanley: | ||||||||
5.500%, 7–28–21 | 1,090 | 1,209 | ||||||
3.125%, 7–27–26 | 1,400 | 1,372 | ||||||
5.450%, 12–29–29 | 4,950 | 5,105 | ||||||
Morgan Stanley (3-Month U.S. LIBOR plus 122 bps), | ||||||||
2.532%, 5–8–24 (B) | 4,650 | 4,708 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Investment Banking & Brokerage (Continued) |
| |||||||
Raymond James Financial, Inc., | ||||||||
4.950%, 7–15–46 | $ | 3,200 | $ | 3,439 | ||||
|
| |||||||
21,237 | ||||||||
|
| |||||||
Life & Health Insurance – 1.6% |
| |||||||
Great-West Lifeco Finance L.P. (GTD by Great-West Lifeco, Inc.), | ||||||||
4.150%, 6–3–47 (A) | 5,000 | 5,134 | ||||||
Teachers Insurance & Annuity Association of America, | ||||||||
4.270%, 5–15–47 (A) | 5,000 | 5,164 | ||||||
Unum Group, | ||||||||
5.750%, 8–15–42 | 3,750 | 4,462 | ||||||
|
| |||||||
14,760 | ||||||||
|
| |||||||
Other Diversified Financial Services – 2.0% |
| |||||||
Citigroup, Inc., | ||||||||
4.400%, 6–10–25 | 5,000 | 5,274 | ||||||
JPMorgan Chase & Co., | ||||||||
5.000%, 12–29–49 | 4,975 | 5,060 | ||||||
Sammons Financial Group, Inc., | ||||||||
4.450%, 5–12–27 (A) | 3,900 | 4,008 | ||||||
TIAA Asset Management Finance Co. LLC: | ||||||||
2.950%, 11–1–19 (A) | 2,500 | 2,541 | ||||||
4.125%, 11–1–24 (A) | 2,125 | 2,237 | ||||||
|
| |||||||
19,120 | ||||||||
|
| |||||||
Property & Casualty Insurance – 1.8% |
| |||||||
Chubb Corp. (The) (3-Month U.S. LIBOR plus 225 bps), | ||||||||
3.554%, 4–15–37 (B) | 9,903 | 9,848 | ||||||
Liberty Mutual Group, Inc. (3-Month U.S. LIBOR plus 290.5 bps), | ||||||||
4.225%, 3–15–37 (A)(B) | 7,700 | 7,527 | ||||||
|
| |||||||
17,375 | ||||||||
|
| |||||||
Regional Banks – 1.0% |
| |||||||
SunTrust Banks, Inc., | ||||||||
5.050%, 12–15–65 | 4,225 | 4,320 | ||||||
Synovus Financial Corp.: | ||||||||
7.875%, 2–15–19 | 3,025 | 3,252 | ||||||
5.750%, 12–15–25 | 2,000 | 2,134 | ||||||
|
| |||||||
9,706 | ||||||||
|
| |||||||
Specialized Finance – 1.3% |
| |||||||
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.: | ||||||||
5.450%, 6–15–23 (A) | 4,540 | 4,980 | ||||||
8.350%, 7–15–46 (A) | 2,930 | 3,743 | ||||||
Peachtree Corners Funding Trust, | ||||||||
3.976%, 2–15–25 | 3,147 | 3,204 | ||||||
|
| |||||||
11,927 | ||||||||
|
| |||||||
Total Financials – 16.2% |
| 153,656 | ||||||
Health Care |
| |||||||
Health Care Facilities – 0.3% |
| |||||||
HCA, Inc. (GTD by HCA Holdings, Inc.), | ||||||||
5.000%, 3–15–24 | 1,000 | 1,065 |
14 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ADVANTUS BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Health Care Facilities (Continued) |
| |||||||
NYU Hospitals Center, | ||||||||
4.428%, 7–1–42 | $ | 2,170 | $ | 2,271 | ||||
|
| |||||||
3,336 | ||||||||
|
| |||||||
Health Care Supplies – 0.3% |
| |||||||
Bio-Rad Laboratories, Inc., | ||||||||
4.875%, 12–15–20 | 2,500 | 2,683 | ||||||
|
| |||||||
Total Health Care – 0.6% |
| 6,019 | ||||||
Industrials |
| |||||||
Airlines – 0.4% |
| |||||||
British Airways plc, | ||||||||
5.625%, 6–20–20 (A) | 952 | 995 | ||||||
U.S. Airways Group, Inc., Class A, | ||||||||
6.250%, 4–22–23 | 2,742 | 3,077 | ||||||
|
| |||||||
4,072 | ||||||||
|
| |||||||
Building Products – 0.5% |
| |||||||
Allegion U.S. Holding Co., Inc. (GTD by Allegion plc), | ||||||||
3.200%, 10–1–24 | 5,000 | 4,974 | ||||||
|
| |||||||
Industrial Conglomerates – 0.3% |
| |||||||
Textron, Inc., | ||||||||
3.375%, 3–1–28 | 3,000 | 2,977 | ||||||
|
| |||||||
Office Services & Supplies – 0.4% |
| |||||||
Pitney Bowes, Inc., | ||||||||
3.625%, 9–15–20 | 3,250 | 3,256 | ||||||
|
| |||||||
Total Industrials – 1.6% |
| 15,279 | ||||||
Information Technology |
| |||||||
Application Software – 0.6% |
| |||||||
Block Financial LLC (GTD by H&R Block, Inc.), | ||||||||
4.125%, 10–1–20 | 5,000 | 5,196 | ||||||
|
| |||||||
Technology Distributors – 0.4% |
| |||||||
Tech Data Corp., | ||||||||
3.700%, 2–15–22 | 3,650 | 3,680 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 0.5% |
| |||||||
Hewlett Packard Enterprise Co., | ||||||||
2.100%, 10–4–19 (A) | 4,950 | 4,951 | ||||||
|
| |||||||
Total Information Technology – 1.5% |
| 13,827 | ||||||
Materials | ||||||||
Aluminum – 0.1% |
| |||||||
Kaiser Aluminum Corp., | ||||||||
5.875%, 5–15–24 | 1,000 | 1,070 | ||||||
|
| |||||||
Construction Materials – 0.2% | ||||||||
USG Corp., | ||||||||
4.875%, 6–1–27 (A) | 2,000 | 2,088 | ||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Industrial Gases – 0.5% |
| |||||||
AmeriGas Partners L.P. and AmeriGas Finance Corp.: | ||||||||
5.500%, 5–20–25 | $ | 700 | $ | 719 | ||||
5.750%, 5–20–27 | 3,600 | 3,681 | ||||||
|
| |||||||
4,400 | ||||||||
|
| |||||||
Total Materials – 0.8% |
| 7,558 | ||||||
Real Estate | ||||||||
Health Care REITs – 0.5% | ||||||||
Omega Healthcare Investors, Inc., | ||||||||
4.500%, 1–15–25 | 2,175 | 2,206 | ||||||
Physicians Realty L.P. (GTD by Physicians Realty Trust), | ||||||||
4.300%, 3–15–27 | 2,450 | 2,504 | ||||||
|
| |||||||
4,710 | ||||||||
|
| |||||||
Specialized REITs – 1.0% |
| |||||||
Crown Castle International Corp., | ||||||||
6.113%, 1–15–20 (A) | 3,270 | 3,494 | ||||||
CyrusOne L.P. and CyrusOne Finance Corp. (GTD by CyrusOne, Inc. and CyrusOne G.P.), | ||||||||
5.000%, 3–15–24 (A) | 500 | 526 | ||||||
Hospitality Properties Trust: | ||||||||
4.500%, 6–15–23 | 1,775 | 1,881 | ||||||
4.650%, 3–15–24 | 1,200 | 1,256 | ||||||
Ventas Realty L.P. (GTD by Ventas, Inc.), | ||||||||
3.100%, 1–15–23 | 2,300 | 2,310 | ||||||
|
| |||||||
9,467 | ||||||||
|
| |||||||
Total Real Estate – 1.5% |
| 14,177 | ||||||
Telecommunication Services |
| |||||||
Integrated Telecommunication Services – 0.9% |
| |||||||
AT&T, Inc.: | ||||||||
3.400%, 8–14–24 | 6,550 | 6,558 | ||||||
4.500%, 3–9–48 | 1,930 | 1,778 | ||||||
|
| |||||||
8,336 | ||||||||
|
| |||||||
Wireless Telecommunication Service – 0.1% |
| |||||||
SBA Communications Corp., | ||||||||
4.000%, 10–1–22 (A) | 1,250 | 1,250 | ||||||
|
| |||||||
Total Telecommunication Services – 1.0% |
| 9,586 | ||||||
Utilities |
| |||||||
Electric Utilities – 5.8% |
| |||||||
Cleco Corporate Holdings LLC: | ||||||||
3.743%, 5–1–26 (D) | 2,200 | 2,215 | ||||||
4.973%, 5–1–46 (D) | 2,075 | 2,229 | ||||||
El Paso Electric Co., | ||||||||
5.000%, 12–1–44 | 2,225 | 2,440 | ||||||
Exelon Corp., | ||||||||
2.500%, 6–1–22 (D) | 3,425 | 3,527 | ||||||
Exelon Generation Co. LLC, | ||||||||
3.400%, 3–15–22 | 7,600 | 7,807 | ||||||
FirstEnergy Corp., Series C, | ||||||||
4.850%, 7–15–47 | 2,125 | 2,229 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Electric Utilities (Continued) |
| |||||||
Indianapolis Power & Light Co., | ||||||||
4.700%, 9–1–45 (A) | $ | 3,150 | $ | 3,347 | ||||
IPALCO Enterprises, Inc.: | ||||||||
3.450%, 7–15–20 | 2,300 | 2,323 | ||||||
3.700%, 9–1–24 (A) | 2,650 | 2,656 | ||||||
NextEra Energy Operating Partners L.P. (GTD by NextEra Energy Partners L.P. and NextEra Energy U.S. Partners Holdings LLC), | ||||||||
4.250%, 9–15–24 (A) | 1,800 | 1,838 | ||||||
Oncor Electric Delivery Co., | ||||||||
3.800%, 9–30–47 (A) | 4,500 | 4,529 | ||||||
Pennsylvania Electric Co., | ||||||||
3.250%, 3–15–28 (A) | 3,550 | 3,503 | ||||||
PPL Capital Funding, Inc. (GTD by PPL Corp.) (3-Month LIBOR plus 266.5 bps), | ||||||||
3.998%, 3–30–67 (B) | 10,000 | 9,825 | ||||||
Southern Power Co., Series F, | ||||||||
4.950%, 12–15–46 | 6,190 | 6,578 | ||||||
|
| |||||||
55,046 | ||||||||
|
| |||||||
Gas Utilities – 1.4% |
| |||||||
AGL Capital Corp., | ||||||||
3.875%, 11–15–25 | 7,050 | 7,252 | ||||||
Brooklyn Union Gas Co., | ||||||||
4.504%, 3–10–46 (A) | 2,875 | 3,139 | ||||||
El Paso Natural Gas Co. LLC, | ||||||||
8.375%, 6–15–32 (D) | 2,000 | 2,578 | ||||||
|
| |||||||
12,969 | ||||||||
|
| |||||||
Independent Power Producers & Energy Traders – 0.4% |
| |||||||
AES Corp. (The), | ||||||||
6.000%, 5–15–26 | 4,000 | 4,300 | ||||||
|
| |||||||
Multi-Utilities – 1.2% |
| |||||||
Dominion Resources, Inc., | ||||||||
5.750%, 10–1–54 | 3,300 | 3,564 | ||||||
NiSource Finance Corp., | ||||||||
3.950%, 3–30–48 | 8,250 | 8,126 | ||||||
|
| |||||||
11,690 | ||||||||
|
| |||||||
Total Utilities – 8.8% |
| 84,005 | ||||||
TOTAL CORPORATE DEBT SECURITIES – 42.0% |
| $ | 399,164 | |||||
(Cost: $389,403) | ||||||||
MORTGAGE-BACKED SECURITIES | ||||||||
Commercial Mortgage-Backed Securities – 5.5% |
| |||||||
7 WTC Depositor LLC Trust 2012-WTC Commercial Mortgage Pass-Through Certificates, Series 2012-7WTC, | ||||||||
4.082%, 3–13–31 (A) | 491 | 494 | ||||||
BAMLL Commercial Mortgage Securities Trust 2014-520M, Class A, | ||||||||
4.325%, 8–15–46 (A) | 4,130 | 4,417 |
2017 | SEMIANNUAL REPORT | 15 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ADVANTUS BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MORTGAGE-BACKED SECURITIES (Continued) | Principal | Value | ||||||
Commercial Mortgage-Backed Securities (Continued) |
| |||||||
Banc of America Commercial Mortgage, Inc., Commercial Mortgage Pass-Through Certificates, Series 2003-2, | ||||||||
3.311%, 2–15–50 | $ | 3,000 | $ | 3,049 | ||||
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-SMPD, | ||||||||
3.008%, 1–12–30 (A) | 1,240 | 1,241 | ||||||
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-GC35, Class A4, | ||||||||
3.209%, 5–10–49 | 4,085 | 4,120 | ||||||
Credit Suisse Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2014-ICE, Class B, | ||||||||
3.304%, 9–15–37 (A) | 1,500 | 1,527 | ||||||
Credit Suisse Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2014-ICE, Class B (Mortgage spread to 10-year U.S. Treasury index), | ||||||||
3.500%, 6–25–47 (A)(B) | 4,775 | 4,758 | ||||||
GS Mortgage Securities Corp. Trust, Commercial Mortgage Pass-Through Certificates, Series 2012-BWTR, | ||||||||
3.440%, 11–5–34 (A) | 1,000 | 991 | ||||||
GS Mortgage Securities Trust 2011-GC5, | ||||||||
3.433%, 5–10–50 | 6,500 | 6,668 | ||||||
Hometown Commercial Capital LLC, Hometown Commercial Mortgage Pass-Through Notes 2006-1, | ||||||||
5.506%, 11–11–38 (A) | 34 | 33 | ||||||
Hometown Commercial Trust, Commercial Mortgage-Backed Notes, Series 2007-1, | ||||||||
6.057%, 6–11–39 (A) | 22 | 13 | ||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2016-JP3 (10-Year U.S. Treasury index plus 110 bps), | ||||||||
3.648%, 12–15–49 (B) | 575 | 600 | ||||||
JPMorgan Chase Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2017-JP5, | ||||||||
3.723%, 3–15–50 | 1,500 | 1,574 | ||||||
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) | 515 | 514 |
MORTGAGE-BACKED SECURITIES (Continued) | Principal | Value | ||||||
Commercial Mortgage-Backed Securities (Continued) |
| |||||||
UBS Commercial Mortgage Trust, Series 2017-C1, Class AS, | ||||||||
3.724%, 6–15–50 | $ | 8,000 | $ | 8,168 | ||||
Vornado DP LLC Trust 2010, Commercial Mortgage Pass-Through Certificates, Series 2010-VNO, | ||||||||
5.280%, 9–13–28 (A) | 1,200 | 1,272 | ||||||
Wells Fargo Commercial Mortgage Trust, Series 2016-BNK1, Class AS: | ||||||||
2.814%, 8–15–49 | 4,600 | 4,463 | ||||||
3.640%, 12–15–59 | 700 | 728 | ||||||
Wells Fargo Commercial Mortgage Trust, Series 2017-BNK7, Class A5, | ||||||||
3.435%, 9–15–60 | 7,000 | 7,170 | ||||||
WFRBS Commercial Mortgage Trust 2011-C5 (3-Year U.S. Treasury index plus 145 bps), | ||||||||
3.667%, 11–15–44 (B) | 435 | 455 | ||||||
|
| |||||||
52,256 | ||||||||
|
| |||||||
Other Mortgage-Backed Securities – 2.6% |
| |||||||
Bear Stearns Mortgage Securities, Inc., | ||||||||
8.000%, 11–25–29 | 106 | 78 | ||||||
C-Bass 2006-MH1 Trust (Mortgage spread to 1-year U.S. Treasury index), | ||||||||
6.250%, 10–25–36 (A)(B) | 1,216 | 1,235 | ||||||
CHL Mortgage Pass-Through Trust 2004-J4, | ||||||||
5.250%, 5–25–34 | 71 | 69 | ||||||
Collateralized Mortgage Obligation Trust, | ||||||||
5.000%, 7–1–18 | — | * | — | * | ||||
CountryPlace Manufactured Housing Contract Trust 2005-1 (Mortgage spread to 3-year U.S. Treasury index), | ||||||||
5.200%, 12–15–35 (A)(B) | 263 | 272 | ||||||
CWHEQ Home Equity Loan Trust, Series 2007-S2 (Mortgage spread to 2-year U.S. Treasury index), | ||||||||
5.934%, 5–25–37 (B) | 260 | 258 | ||||||
GMACM Home Equity Loan Trust 2007-HE1 (1-Month U.S. LIBOR plus 14 bps), | ||||||||
5.952%, 8–25–37 (B) | 498 | 517 | ||||||
Green Tree Financial Corp., Manufactured Housing Contract, Pass-Through Certificates, Series 1993-3A7, | ||||||||
6.400%, 10–15–18 | 2 | 2 | ||||||
Invitation Homes Trust, Series 2014-SFR2 (1-Month U.S. LIBOR plus 110 bps), | ||||||||
2.327%, 9–17–31 (A)(B) | 949 | 951 | ||||||
JPMorgan Mortgage Trust 2004-A3 (Mortgage spread to 10-year U.S. Treasury index), | ||||||||
3.836%, 7–25–34 (B) | 111 | 113 |
MORTGAGE-BACKED SECURITIES (Continued) | Principal | Value | ||||||
Other Mortgage-Backed Securities (Continued) |
| |||||||
JPMorgan Mortgage Trust 2006-A2 (Mortgage spread to 7-year U.S. Treasury index), | ||||||||
3.375%, 10–25–46 (A)(B) | $ | 3,073 | $ | 2,957 | ||||
JPMorgan Mortgage Trust 2013-2, Class B3 (Mortgage spread to 7-year U.S. Treasury index), | ||||||||
3.656%, 5–25–43 (A)(B) | 2,868 | 2,899 | ||||||
JPMorgan Mortgage Trust 2013-2, Class B4 (Mortgage spread to 5-year U.S. Treasury index), | ||||||||
3.656%, 5–25–43 (A)(B) | 1,788 | 1,784 | ||||||
JPMorgan Mortgage Trust 2014-2 (Mortgage spread to 5-year U.S. Treasury index), | ||||||||
3.426%, 6–25–29 (A)(B) | 1,716 | 1,728 | ||||||
Merrill Lynch Mortgage Investors, Inc., Mortgage Pass-Through Certificates, Series 1997-C2, | ||||||||
6.250%, 12–10–29 | 171 | 170 | ||||||
Morgan Stanley BAML Trust, Series 2016-C32, | ||||||||
3.720%, 12–15–49 | 320 | 335 | ||||||
Morgan Stanley Capital I Trust 2012-STAR, Class A-2, | ||||||||
3.201%, 8–5–34 (A) | 1,350 | 1,357 | ||||||
Morgan Stanley Capital I Trust 2012-STAR, Class B, | ||||||||
3.451%, 8–5–34 (A) | 930 | 932 | ||||||
Prudential Home Mortgage Securities: | ||||||||
6.730%, 4–28–24 (A) | — | * | — | * | ||||
7.805%, 9–28–24 (A) | 1 | 1 | ||||||
RASC, Series 2003-KS10 Trust, | ||||||||
6.410%, 12–25–33 | 158 | 107 | ||||||
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1, | ||||||||
5.729%, 12–25–30 | 742 | 52 | ||||||
Sequoia Mortgage Trust 2012-5, Class B2 (Mortgage spread to 3-year U.S. Treasury index), | ||||||||
3.898%, 11–25–42 (B) | 4,735 | 4,883 | ||||||
Sequoia Mortgage Trust 2015-3, Class B1 (Mortgage spread to 7-year U.S. Treasury index), | ||||||||
3.716%, 7–25–45 (A)(B) | 3,987 | 4,064 | ||||||
Structured Asset Mortgage Investments, Inc., | ||||||||
1.308%, 5–2–30 | 6 | 1 | ||||||
|
| |||||||
24,765 | ||||||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES – 8.1% |
| $ | 77,021 | |||||
(Cost: $78,234) | ||||||||
MUNICIPAL BONDS – TAXABLE | ||||||||
Alabama – 0.1% |
| |||||||
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013T, | ||||||||
3.435%, 12–15–25 | 470 | 483 | ||||||
|
|
16 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ADVANTUS BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS – TAXABLE (Continued) | Principal | Value | ||||||
New York – 0.7% |
| |||||||
Port Auth of NY & NJ Consolidated Bonds, 168th Ser, | ||||||||
4.926%, 10–1–51 | $ | 2,690 | $ | 3,238 | ||||
Port Auth of NY & NJ Consolidated Bonds, Ser 174, | ||||||||
4.458%, 10–1–62 | 3,000 | 3,360 | ||||||
|
| |||||||
6,598 | ||||||||
|
| |||||||
Washington – 0.2% |
| |||||||
Pub Util Dist No. 1, Douglas Cnty, WA, Wells Hydroelec Bonds, Ser 2010A, | ||||||||
5.450%, 9–1–40 | 1,205 | 1,418 | ||||||
|
| |||||||
TOTAL MUNICIPAL BONDS – TAXABLE – 1.0% |
| $ | 8,499 | |||||
(Cost: $7,251) | ||||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | ||||||||
Mortgage-Backed Obligations – 21.6% |
| |||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO, | ||||||||
5.300%, 1–15–33 | 68 | 75 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 130 bps), | ||||||||
2.537%, 4–25–29 (B) | 670 | 679 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 220 bps), | ||||||||
3.437%, 9–25–24 (B) | 2,750 | 2,840 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 280 bps): | ||||||||
4.037%, 5–25–28 (B) | 1,925 | 1,988 | ||||||
6.037%, 5–25–28 (B) | 3,700 | 4,233 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 330 bps): | ||||||||
5.937%, 4–25–28 (B) | 5,000 | 5,747 | ||||||
6.387%, 10–25–29 (B) | 4,000 | 4,230 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 515 bps), | ||||||||
6.387%, 11–25–28 (B) | 3,110 | 3,576 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 95 bps), | ||||||||
2.187%, 10–25–29 (B) | 5,700 | 5,144 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 30-year U.S. Treasury index), | ||||||||
4.000%, 8–25–56 (A)(B) | 1,466 | 1,460 | ||||||
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates: | ||||||||
5.500%, 12–1–17 | 1 | 1 | ||||||
5.500%, 9–1–19 | 26 | 26 | ||||||
5.000%, 4–1–23 | 168 | 178 | ||||||
3.500%, 8–1–26 | 502 | 526 | ||||||
2.500%, 3–1–28 | 533 | 541 |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
2.500%, 4–1–28 | $ | 502 | $ | 509 | ||||
5.000%, 5–1–29 | 44 | 48 | ||||||
3.500%, 5–1–32 | 1,096 | 1,145 | ||||||
6.500%, 9–1–32 | 35 | 41 | ||||||
6.000%, 11–1–33 | 42 | 49 | ||||||
5.500%, 5–1–34 | 368 | 416 | ||||||
6.500%, 5–1–34 | 103 | 118 | ||||||
5.500%, 6–1–34 | 108 | 121 | ||||||
5.000%, 9–1–34 | 1 | 1 | ||||||
5.500%, 9–1–34 | 4 | 4 | ||||||
5.500%, 10–1–34 | 153 | 171 | ||||||
5.500%, 7–1–35 | 50 | 56 | ||||||
5.000%, 8–1–35 | 46 | 50 | ||||||
5.500%, 10–1–35 | 53 | 59 | ||||||
5.000%, 11–1–35 | 124 | 135 | ||||||
5.000%, 12–1–35 | 26 | 28 | ||||||
6.500%, 7–1–36 | 27 | 30 | ||||||
7.000%, 12–1–37 | 32 | 35 | ||||||
5.500%, 2–1–39 | 249 | 279 | ||||||
5.000%, 11–1–39 | 117 | 130 | ||||||
5.000%, 1–1–40 | 685 | 758 | ||||||
5.000%, 3–1–40 | 1,154 | 1,281 | ||||||
5.000%, 4–1–40 | 232 | 255 | ||||||
5.000%, 8–1–40 | 209 | 228 | ||||||
4.000%, 10–1–40 | 502 | 533 | ||||||
4.000%, 11–1–40 | 737 | 791 | ||||||
4.500%, 1–1–41 | 583 | 627 | ||||||
4.000%, 2–1–41 | 1,274 | 1,358 | ||||||
4.000%, 3–1–41 | 410 | 439 | ||||||
4.500%, 3–1–41 | 282 | 305 | ||||||
4.500%, 4–1–41 | 861 | 938 | ||||||
4.000%, 6–1–41 | 465 | 498 | ||||||
4.000%, 8–1–41 | 295 | 313 | ||||||
4.000%, 11–1–41 | 3,266 | 3,468 | ||||||
3.500%, 3–1–42 | 1,650 | 1,714 | ||||||
3.000%, 8–1–42 | 1,081 | 1,091 | ||||||
3.500%, 8–1–42 | 2,813 | 2,917 | ||||||
3.000%, 1–1–43 | 1,363 | 1,376 | ||||||
3.000%, 2–1–43 | 1,692 | 1,708 | ||||||
3.500%, 7–1–44 | 2,080 | 2,151 | ||||||
3.500%, 12–1–44 | 4,118 | 4,249 | ||||||
3.500%, 5–25–45 | 5,135 | 5,204 | ||||||
3.000%, 7–1–45 | 4,902 | 4,921 | ||||||
3.500%, 3–1–46 | 2,325 | 2,399 | ||||||
3.000%, 10–25–46 | 1,509 | 1,502 | ||||||
Federal National Mortgage Association Agency REMIC/CMO, | ||||||||
2.898%, 6–25–27 | 675 | 672 | ||||||
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 365 bps), | ||||||||
4.887%, 9–25–29 (B) | 2,350 | 2,486 | ||||||
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 440 bps), | ||||||||
5.637%, 1–25–24 (B) | 4,000 | 4,493 | ||||||
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 445 bps), | ||||||||
5.687%, 1–25–29 (B) | 4,000 | 4,383 |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 550 bps), | ||||||||
6.737%, 9–25–29 (B) | $ | 1,650 | $ | 1,691 | ||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
6.000%, 1–1–18 | 2 | 2 | ||||||
5.500%, 2–1–18 | 2 | 2 | ||||||
5.500%, 3–1–18 | 1 | 1 | ||||||
5.000%, 5–1–18 | 12 | 13 | ||||||
5.000%, 6–1–18 | 3 | 3 | ||||||
5.000%, 7–1–18 | 2 | 2 | ||||||
5.000%, 10–1–18 | 14 | 14 | ||||||
5.500%, 9–1–19 | 9 | 9 | ||||||
3.000%, 9–1–22 | 538 | 553 | ||||||
5.000%, 7–1–23 | 94 | 103 | ||||||
6.000%, 8–1–23 | 100 | 106 | ||||||
5.500%, 2–1–24 | 41 | 45 | ||||||
4.500%, 4–1–25 | 147 | 155 | ||||||
3.500%, 11–1–25 | 306 | 320 | ||||||
3.500%, 6–1–26 | 472 | 492 | ||||||
2.500%, 11–1–27 | 940 | 947 | ||||||
6.000%, 8–1–29 | 38 | 44 | ||||||
7.500%, 5–1–31 | 17 | 19 | ||||||
7.000%, 9–1–31 | 7 | 7 | ||||||
7.000%, 11–1–31 | 79 | 89 | ||||||
6.500%, 12–1–31 | 8 | 9 | ||||||
6.500%, 2–1–32 | 78 | 89 | ||||||
7.000%, 2–1–32 | 62 | 71 | ||||||
7.000%, 3–1–32 | 94 | 109 | ||||||
6.500%, 4–1–32 | 15 | 17 | ||||||
6.500%, 5–1–32 | 31 | 34 | ||||||
6.500%, 7–1–32 | 9 | 11 | ||||||
6.500%, 8–1–32 | 15 | 16 | ||||||
6.000%, 9–1–32 | 16 | 18 | ||||||
6.500%, 9–1–32 | 34 | 38 | ||||||
6.000%, 10–1–32 | 287 | 329 | ||||||
6.500%, 10–1–32 | 38 | 44 | ||||||
6.000%, 11–1–32 | 207 | 238 | ||||||
3.500%, 12–1–32 | 1,553 | 1,623 | ||||||
6.000%, 3–1–33 | 341 | 391 | ||||||
5.500%, 4–1–33 | 256 | 288 | ||||||
6.000%, 4–1–33 | 11 | 12 | ||||||
5.500%, 5–1–33 | 25 | 28 | ||||||
6.000%, 6–1–33 | 70 | 79 | ||||||
6.500%, 8–1–33 | 14 | 15 | ||||||
6.000%, 10–1–33 | 39 | 44 | ||||||
6.000%, 12–1–33 | 67 | 76 | ||||||
5.500%, 1–1–34 | 59 | 67 | ||||||
5.500%, 1–1–34 | 59 | 67 | ||||||
6.000%, 1–1–34 | 38 | 43 | ||||||
5.000%, 3–1–34 | 210 | 232 | ||||||
5.000%, 3–1–34 | 20 | 22 | ||||||
5.500%, 3–1–34 | 24 | 27 | ||||||
5.500%, 4–1–34 | 23 | 25 | ||||||
5.000%, 5–1–34 | 13 | 14 | ||||||
6.000%, 8–1–34 | 62 | 71 | ||||||
5.500%, 9–1–34 | 179 | 201 | ||||||
6.000%, 9–1–34 | 72 | 82 | ||||||
6.500%, 9–1–34 | 187 | 210 | ||||||
5.500%, 11–1–34 | 207 | 230 |
2017 | SEMIANNUAL REPORT | 17 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ADVANTUS BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
6.000%, 11–1–34 | $ | 96 | $ | 108 | ||||
6.500%, 11–1–34 | 6 | 7 | ||||||
5.000%, 12–1–34 | 339 | 374 | ||||||
5.500%, 1–1–35 | 170 | 191 | ||||||
5.500%, 1–1–35 | 23 | 26 | ||||||
5.500%, 2–1–35 | 476 | 534 | ||||||
5.500%, 2–1–35 | 52 | 58 | ||||||
6.500%, 3–1–35 | 137 | 157 | ||||||
5.000%, 4–1–35 | 63 | 69 | ||||||
5.500%, 4–1–35 | 122 | 136 | ||||||
4.500%, 5–1–35 | 216 | 233 | ||||||
5.500%, 6–1–35 | 7 | 8 | ||||||
4.500%, 7–1–35 | 184 | 198 | ||||||
5.000%, 7–1–35 | 376 | 414 | ||||||
5.000%, 7–1–35 | 78 | 86 | ||||||
5.500%, 7–1–35 | 53 | 59 | ||||||
5.500%, 8–1–35 | 7 | 8 | ||||||
5.500%, 10–1–35 | 257 | 288 | ||||||
5.500%, 11–1–35 | 133 | 149 | ||||||
5.500%, 12–1–35 | 146 | 163 | ||||||
5.000%, 2–1–36 | 34 | 38 | ||||||
5.500%, 2–1–36 | 55 | 59 | ||||||
6.500%, 2–1–36 | 26 | 29 | ||||||
5.500%, 9–1–36 | 175 | 197 | ||||||
5.500%, 11–1–36 | 66 | 73 | ||||||
6.000%, 11–1–36 | 45 | 51 | ||||||
6.000%, 1–1–37 | 34 | 38 | ||||||
6.000%, 5–1–37 | 86 | 99 | ||||||
5.500%, 6–1–37 | 47 | 53 | ||||||
6.000%, 8–1–37 | 45 | 51 | ||||||
6.000%, 9–1–37 | 46 | 53 | ||||||
7.000%, 10–1–37 | 16 | 17 | ||||||
5.500%, 3–1–38 | 169 | 193 | ||||||
5.000%, 4–1–38 | 216 | 239 | ||||||
5.500%, 5–1–38 | 54 | 60 | ||||||
6.000%, 10–1–38 | 139 | 157 | ||||||
6.000%, 12–1–38 | 105 | 119 | ||||||
4.500%, 6–1–39 | 132 | 143 | ||||||
5.000%, 12–1–39 | 322 | 359 | ||||||
5.500%, 12–1–39 | 193 | 216 | ||||||
5.000%, 3–1–40 | 727 | 806 | ||||||
6.000%, 6–1–40 | 86 | 98 | ||||||
4.500%, 10–1–40 | 703 | 761 | ||||||
4.000%, 12–1–40 | 886 | 937 | ||||||
3.500%, 4–1–41 | 1,746 | 1,811 | ||||||
4.000%, 4–1–41 | 1,098 | 1,171 | ||||||
4.500%, 4–1–41 | 1,627 | 1,772 | ||||||
5.000%, 4–1–41 | 178 | 196 | ||||||
4.500%, 7–1–41 | 837 | 905 | ||||||
4.000%, 8–1–41 | 665 | 703 | ||||||
4.000%, 9–1–41 | 1,066 | 1,135 | ||||||
3.500%, 10–1–41 TBA | 9,725 | 10,022 | ||||||
4.000%, 10–1–41 | 1,211 | 1,290 | ||||||
3.500%, 11–1–41 | 2,797 | 2,900 | ||||||
3.500%, 1–1–42 | 3,491 | 3,616 | ||||||
3.000%, 3–1–42 | 1,059 | 1,068 | ||||||
3.500%, 4–1–42 | 5,031 | 5,208 | ||||||
3.500%, 8–1–42 | 1,705 | 1,768 | ||||||
3.000%, 9–1–42 | 1,796 | 1,811 | ||||||
3.000%, 10–1–42 | 6,000 | 6,016 | ||||||
3.500%, 1–1–43 | 938 | 971 | ||||||
3.500%, 2–1–43 | 1,259 | 1,309 |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
3.500%, 3–1–43 | $ | 1,750 | $ | 1,818 | ||||
3.000%, 5–1–43 | 6,306 | 6,358 | ||||||
4.000%, 1–1–44 | 1,064 | 1,139 | ||||||
4.000%, 4–1–44 | 2,876 | 3,031 | ||||||
3.500%, 5–1–45 | 2,123 | 2,195 | ||||||
3.500%, 6–1–45 | 1,728 | 1,789 | ||||||
3.500%, 7–1–45 | 1,571 | 1,624 | ||||||
3.500%, 8–1–45 | 2,063 | 2,135 | ||||||
3.500%, 9–1–45 | 1,358 | 1,404 | ||||||
3.000%, 12–1–45 | 1,412 | 1,417 | ||||||
3.000%, 1–1–46 | 3,769 | 3,784 | ||||||
4.000%, 2–1–47 | 988 | 1,049 | ||||||
3.500%, 8–1–47 | 4,958 | 5,113 | ||||||
Government National Mortgage Association Agency REMIC/CMO: | ||||||||
0.643%, 7–16–40 (E) | 117 | — | * | |||||
0.011%, 6–17–45 (E) | 342 | — | * | |||||
Government National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
6.250%, 7–15–24 | 51 | 55 | ||||||
4.000%, 8–20–31 | 612 | 650 | ||||||
5.000%, 7–15–33 | 142 | 156 | ||||||
5.000%, 7–15–34 | 104 | 114 | ||||||
5.500%, 12–15–34 | 129 | 145 | ||||||
5.000%, 1–15–35 | 139 | 153 | ||||||
3.250%, 11–20–35 | 617 | 639 | ||||||
5.000%, 12–15–35 | 237 | 261 | ||||||
4.000%, 6–20–36 | 978 | 1,039 | ||||||
5.500%, 7–15–38 | 137 | 155 | ||||||
5.500%, 10–15–38 | 161 | 186 | ||||||
5.500%, 2–15–39 | 43 | 49 | ||||||
5.000%, 12–15–39 | 124 | 138 | ||||||
5.000%, 1–15–40 | 757 | 832 | ||||||
4.500%, 6–15–40 | 372 | 404 | ||||||
5.000%, 7–15–40 | 194 | 213 | ||||||
4.000%, 12–20–40 | 492 | 525 | ||||||
4.000%, 1–15–41 | 588 | 623 | ||||||
4.000%, 10–15–41 | 352 | 373 | ||||||
3.500%, 10–20–43 | 1,513 | 1,581 | ||||||
4.000%, 12–20–44 | 549 | 582 | ||||||
3.500%, 2–20–45 | 2,507 | 2,610 | ||||||
3.000%, 3–15–45 | 3,321 | 3,367 | ||||||
3.000%, 3–20–45 | 1,657 | 1,681 | ||||||
3.500%, 3–20–45 | 1,683 | 1,752 | ||||||
3.500%, 4–20–45 | 3,790 | 3,946 | ||||||
3.500%, 4–20–46 | 1,230 | 1,280 | ||||||
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 1 (Mortgage spread to 3-year U.S. Treasury index), | ||||||||
6.931%, 2–15–25 (B) | 51 | 55 | ||||||
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 2, | ||||||||
7.793%, 2–15–25 | 14 | 16 | ||||||
|
| |||||||
205,434 | ||||||||
|
|
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 21.6% |
| $ | 205,434 | |||||
(Cost: $204,209) | ||||||||
UNITED STATES GOVERNMENT OBLIGATIONS | ||||||||
Treasury Obligations – 11.2% | ||||||||
U.S. Treasury Bonds: | ||||||||
5.375%, 2–15–31 (F) | $ | 4,940 | 6,611 | |||||
3.000%, 5–15–47 | 23,852 | 24,526 | ||||||
U.S. Treasury Notes: | ||||||||
1.250%, 5–31–19 | 2,850 | 2,841 | ||||||
1.500%, 5–15–20 | 4,500 | 4,490 | ||||||
1.500%, 6–15–20 | 630 | 628 | ||||||
1.500%, 7–15–20 | 2,345 | 2,338 | ||||||
1.875%, 7–31–22 | 33,425 | 33,341 | ||||||
1.625%, 8–31–22 | 1,665 | 1,642 | ||||||
2.000%, 4-30-24 | 8,015 | 7,950 | ||||||
2.125%, 7–31–24 | 7,743 | 7,728 | ||||||
1.875%, 8–31–24 | 9,000 | 8,836 | ||||||
2.250%, 8–15–27 | 5,700 | 5,659 | ||||||
|
| |||||||
106,590 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 11.2% |
| $ | 106,590 | |||||
(Cost: $106,540) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Commercial Paper (G) – 4.6% | ||||||||
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.), | ||||||||
1.180%, 10–5–17 | 5,000 | 4,999 | ||||||
Harley-Davidson Financial Services(GTD by Harley-Davidson Credit Corp.), | ||||||||
1.490%, 10–12–17 | 5,000 | 4,997 | ||||||
John Deere Canada ULC (GTD by Deere & Co.), | ||||||||
1.190%, 10–23–17 | 15,000 | 14,989 | ||||||
Kellogg Co., | ||||||||
1.341%, 10–2–17 | 13,000 | 12,999 | ||||||
Kroger Co. (The), | ||||||||
1.300%, 10–2–17 | 5,712 | 5,711 | ||||||
|
| |||||||
43,695 | ||||||||
|
| |||||||
Master Note – 0.4% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (H) | 3,711 | 3,711 | ||||||
|
| |||||||
Municipal Obligations – 0.2% | ||||||||
NYC Hsng Dev Corp., Multi-Fam Mtg Rev Bonds (Markham Gardens Apt), Ser 2006A (GTD by FHLMC) (BVAL plus 14 bps), | ||||||||
0.990%, 10–7–17 (H) | 2,000 | 2,000 | ||||||
|
|
18 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ADVANTUS BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Value | ||||||||
TOTAL SHORT-TERM SECURITIES – 5.2% |
| $ | 49,406 | |||||
(Cost: $49,408) | ||||||||
TOTAL INVESTMENT SECURITIES – 102.1% |
| $ | 969,602 | |||||
(Cost: $955,795) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.1)% |
| (19,819 | ) | |||||
NET ASSETS – 100.0% |
| $ | 949,783 |
Notes to Schedule of Investments
* | Not shown due to rounding. |
(A) | Securities were purchased pursuant to an exemption from registration available under Rule 144A under the Securities Act of 1933 and may only be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2017 the total value of these securities amounted to $185,349 or 19.5% of net assets. |
(B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description. |
(C) | Securities whose value was determined using significant unobservable inputs. |
(D) | Step bond that pays an initial coupon rate for the first period and then a higher or lower coupon rate for the following periods. Interest rate disclosed is that which is in effect at September 30, 2017. |
(E) | Interest-only security. Amount shown as principal represents notional amount for computation of interest. |
(F) | All or a portion of securities with an aggregate value of $375 have been pledged as collateral on open futures contracts. |
(G) | Rate shown is the yield to maturity at September 30, 2017. |
(H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following futures contracts were outstanding at September 30, 2017 (contracts unrounded):
Description | Type | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
U.S. 5 Year Treasury Note | Long | 374 | 12–4–17 | 37,400 | $ | 43,945 | $ | (337 | ) | |||||||||||||||||||
U.S. 10 Year Treasury Note | Short | 208 | 12–29–17 | 20,800 | (26,065 | ) | 298 | |||||||||||||||||||||
U.S. Treasury Long Bond | Short | 11 | 12–29–17 | 1,100 | (1,681 | ) | 30 | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||
$ | 16,199 | $ | (9 | ) | ||||||||||||||||||||||||
|
|
2017 | SEMIANNUAL REPORT | 19 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY ADVANTUS BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (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, 2017. 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 | $ | 7,271 | $ | — | $ | — | ||||||
Asset-Backed Securities | — | 115,776 | 441 | |||||||||
Corporate Debt Securities | — | 399,164 | — | |||||||||
Mortgage-Backed Securities | — | 77,021 | — | |||||||||
Municipal Bonds | — | 8,499 | — | |||||||||
United States Government Agency Obligations | — | 205,434 | — | |||||||||
United States Government Obligations | — | 106,590 | — | |||||||||
Short-Term Securities | — | 49,406 | — | |||||||||
Total | $ | 7,271 | $ | 961,890 | $ | 441 | ||||||
Futures Contracts | $ | 328 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||
Futures Contracts | $ | 337 | $ | — | $ | — |
During the period ended September 30, 2017, there were no transfers between any levels.
The following acronyms are used throughout this schedule:
BVAL = Bloomberg Valuation Municipal AAA Benchmark
CMO = Collateralized Mortgage Obligation
FHLMC = Federal Home Loan Mortgage Corp.
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
REIT = Real Estate Investment Trust
REMIC = Real Estate Mortgage Investment Conduit
TBA = To Be Announced
See Accompanying Notes to Financial Statements.
20 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY CORE EQUITY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 98.0% | |||
Information Technology | 34.3% | |||
Financials | 17.9% | |||
Health Care | 11.5% | |||
Industrials | 9.7% | |||
Consumer Staples | 9.4% | |||
Consumer Discretionary | 7.3% | |||
Energy | 4.2% | |||
Materials | 3.7% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 2.0% |
Lipper Rankings
Category: Large-Cap Core Funds | Rank | Percentile | ||||
1 Year | 724/790 | 92 | ||||
3 Year | 671/713 | 94 | ||||
5 Year | 559/640 | 88 | ||||
10 Year | 209/492 | 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.
Top 10 Equity Holdings
Company | Sector | Industry | ||
Apple, Inc. | Information Technology | Technology Hardware, Storage & Peripherals | ||
Microsoft Corp. | Information Technology | Systems Software | ||
Morgan Stanley | Financials | Investment Banking & Brokerage | ||
Alphabet, Inc., Class A | Information Technology | Internet Software & Services | ||
JPMorgan Chase & Co. | Financials | Other Diversified Financial Services | ||
UnitedHealth Group, Inc. | Health Care | Managed Health Care | ||
PayPal, Inc. | Information Technology | Data Processing & Outsourced Services | ||
Blackstone Group L.P. (The) | Financials | Asset Management & Custody Banks | ||
Applied Materials, Inc. | Information Technology | Semiconductor Equipment | ||
Monster Beverage Corp. | Consumer Staples | Soft Drinks |
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. |
2017 | SEMIANNUAL REPORT | 21 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary | ||||||||
Auto Parts & Equipment – 2.1% |
| |||||||
Magna International, Inc. | 356 | $ | 18,982 | |||||
|
| |||||||
Cable & Satellite – 1.9% |
| |||||||
Charter Communications, Inc., Class A (A) | 16 | 5,924 | ||||||
Comcast Corp., Class A | 291 | 11,198 | ||||||
|
| |||||||
17,122 | ||||||||
|
| |||||||
Home Improvement Retail – 2.1% |
| |||||||
Home Depot, Inc. (The) | 116 | 18,915 | ||||||
|
| |||||||
Housewares & Specialties – 1.2% |
| |||||||
Newell Rubbermaid, Inc. | 244 | 10,420 | ||||||
|
| |||||||
Total Consumer Discretionary – 7.3% |
| 65,439 | ||||||
Consumer Staples |
| |||||||
Brewers – 1.2% |
| |||||||
Molson Coors Brewing Co., Class B | 131 | 10,662 | ||||||
|
| |||||||
Hypermarkets & Super Centers – 2.0% |
| |||||||
Costco Wholesale Corp. | 111 | 18,302 | ||||||
|
| |||||||
Packaged Foods & Meats – 1.4% |
| |||||||
Kraft Foods Group, Inc. | 157 | 12,176 | ||||||
|
| |||||||
Soft Drinks – 2.4% |
| |||||||
Monster Beverage Corp. (A) | 395 | 21,829 | ||||||
|
| |||||||
Tobacco – 2.4% |
| |||||||
Philip Morris International, Inc. | 189 | 21,000 | ||||||
|
| |||||||
Total Consumer Staples – 9.4% |
| 83,969 | ||||||
Energy |
| |||||||
Oil & Gas Exploration & Production – 4.2% |
| |||||||
Cimarex Energy Co. | 132 | 14,997 | ||||||
EOG Resources, Inc. | 187 | 18,090 | ||||||
Pioneer Natural Resources Co. | 32 | 4,766 | ||||||
|
| |||||||
37,853 | ||||||||
|
| |||||||
Total Energy – 4.2% |
| 37,853 | ||||||
Financials |
| |||||||
Asset Management & Custody Banks – 2.7% |
| |||||||
Blackstone Group L.P. (The) | 719 | 23,976 | ||||||
|
| |||||||
Diversified Banks – 3.2% |
| |||||||
Bank of America Corp. | 561 | 14,211 | ||||||
Wells Fargo & Co. | 254 | 13,998 | ||||||
|
| |||||||
28,209 | ||||||||
|
| |||||||
Financial Exchanges & Data – 2.2% |
| |||||||
CME Group, Inc. | 146 | 19,836 | ||||||
|
| |||||||
Investment Banking & Brokerage – 4.9% |
| |||||||
Charles Schwab Corp. (The) | 354 | 15,497 | ||||||
Morgan Stanley | 592 | 28,531 | ||||||
|
| |||||||
44,028 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Other Diversified Financial Services – 4.9% |
| |||||||
Citigroup, Inc. | 239 | $ | 17,356 | |||||
JPMorgan Chase & Co. | 273 | 26,055 | ||||||
|
| |||||||
43,411 | ||||||||
|
| |||||||
Total Financials – 17.9% |
| 159,460 | ||||||
Health Care |
| |||||||
Biotechnology – 1.8% |
| |||||||
Alexion Pharmaceuticals, Inc. (A) | 117 | 16,432 | ||||||
|
| |||||||
Health Care Equipment – 2.1% |
| |||||||
Intuitive Surgical, Inc. (A) | 18 | 18,512 | ||||||
|
| |||||||
Managed Health Care – 4.7% |
| |||||||
Cigna Corp. | 90 | 16,787 | ||||||
UnitedHealth Group, Inc. | 130 | 25,539 | ||||||
|
| |||||||
42,326 | ||||||||
|
| |||||||
Pharmaceuticals – 2.9% |
| |||||||
Eli Lilly and Co. | 102 | 8,742 | ||||||
Zoetis, Inc. | 267 | 17,018 | ||||||
|
| |||||||
25,760 | ||||||||
|
| |||||||
Total Health Care – 11.5% |
| 103,030 | ||||||
Industrials |
| |||||||
Aerospace & Defense – 4.5% |
| |||||||
Airbus SE (B) | 99 | 9,380 | ||||||
Lockheed Martin Corp. | 51 | 15,732 | ||||||
United Technologies Corp. | 133 | 15,485 | ||||||
|
| |||||||
40,597 | ||||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 1.6% |
| |||||||
WABCO Holdings, Inc. (A) | 97 | 14,371 | ||||||
|
| |||||||
Railroads – 1.6% |
| |||||||
Norfolk Southern Corp. | 109 | 14,441 | ||||||
|
| |||||||
Trucking – 2.0% |
| |||||||
J.B. Hunt Transport Services, Inc. | 157 | 17,439 | ||||||
|
| |||||||
Total Industrials – 9.7% |
| 86,848 | ||||||
Information Technology |
| |||||||
Application Software – 2.2% |
| |||||||
Adobe Systems, Inc. (A) | 134 | 19,975 | ||||||
|
| |||||||
Data Processing & Outsourced Services – 6.7% |
| |||||||
MasterCard, Inc., Class A | 109 | 15,365 | ||||||
PayPal, Inc. (A) | 380 | 24,344 | ||||||
Visa, Inc., Class A | 192 | 20,164 | ||||||
|
| |||||||
59,873 | ||||||||
|
| |||||||
Home Entertainment Software – 1.9% |
| |||||||
Electronic Arts, Inc. (A) | 146 | 17,178 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Internet Software & Services – 5.2% |
| |||||||
Alphabet, Inc., Class A (A) | 29 | $ | 28,433 | |||||
Facebook, Inc., Class A (A) | 104 | 17,846 | ||||||
|
| |||||||
46,279 | ||||||||
|
| |||||||
Semiconductor Equipment – 5.0% |
| |||||||
Applied Materials, Inc. | 444 | 23,128 | ||||||
ASML Holding N.V., NY Registry Shares | 123 | 21,006 | ||||||
|
| |||||||
44,134 | ||||||||
|
| |||||||
Semiconductors – 4.5% |
| |||||||
Analog Devices, Inc. | 217 | 18,690 | ||||||
Broadcom Corp., Class A | 89 | 21,562 | ||||||
|
| |||||||
40,252 | ||||||||
|
| |||||||
Systems Software – 4.4% |
| |||||||
Microsoft Corp. | 526 | 39,159 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 4.4% |
| |||||||
Apple, Inc. | 256 | 39,378 | ||||||
|
| |||||||
Total Information Technology – 34.3% |
| 306,228 | ||||||
Materials |
| |||||||
Commodity Chemicals – 1.5% |
| |||||||
LyondellBasell Industries N.V., Class A | 133 | 13,183 | ||||||
|
| |||||||
Diversified Chemicals – 2.2% |
| |||||||
Dow Chemical Co. (The) | 290 | 20,049 | ||||||
|
| |||||||
Total Materials – 3.7% |
| 33,232 | ||||||
TOTAL COMMON STOCKS – 98.0% |
| $ | 876,059 | |||||
(Cost: $697,740) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (C) – 1.4% |
| |||||||
Sonoco Products Co., 1.330%, 10-2-17 | $ | 7,598 | 7,597 | |||||
Virginia Electric and Power Co., 1.290%, 10-5-17 | 5,000 | 4,999 | ||||||
|
| |||||||
12,596 | ||||||||
|
| |||||||
Master Note – 0.7% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | 5,870 | 5,870 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 2.1% |
| $ | 18,466 | |||||
(Cost: $18,467) |
| |||||||
TOTAL INVESTMENT |
| $ | 894,525 | |||||
(Cost: $716,207) |
| |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)% |
| (662 | ) | |||||
NET ASSETS – 100.0% |
| $ | 893,863 |
22 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Notes to Schedule of Investments
(A) | No dividends were paid during the preceding 12 months. |
(B) | Listed on an exchange outside the United States. |
(C) | Rate shown is the yield to maturity at September 30, 2017. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 876,059 | $ | — | $ | — | ||||||
Short-Term Securities | — | 18,466 | — | |||||||||
Total | $ | 876,059 | $ | 18,466 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
LIBOR = London Interbank Offered Rate
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 23 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY CUNDILL GLOBAL VALUE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 99.7% | |||
Financials | 27.4% | |||
Consumer Discretionary | 15.5% | |||
Health Care | 12.8% | |||
Energy | 10.9% | |||
Industrials | 10.6% | |||
Information Technology | 10.0% | |||
Materials | 6.3% | |||
Telecommunication Services | 2.5% | |||
Real Estate | 1.9% | |||
Consumer Staples | 1.8% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 0.3% |
Lipper Rankings
Category: Global Multi-Cap Value Funds | Rank | Percentile | ||||
1 Year | 28/97 | 29 | ||||
3 Year | 80/83 | 96 | ||||
5 Year | 42/59 | 70 | ||||
10 Year | 27/38 | 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.
Country Weightings
North America | 64.0% | |||
United States | 61.4% | |||
Other North America | 2.6% | |||
Europe | 21.0% | |||
United Kingdom | 10.3% | |||
France | 5.9% | |||
Other Europe | 4.8% | |||
Pacific Basin | 13.7% | |||
Japan | 5.0% | |||
South Korea | 4.5% | |||
Other Pacific Basin | 4.2% | |||
Other | 1.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 0.3% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Citigroup, Inc. | United States | Financials | Other Diversified Financial Services | |||
Wells Fargo & Co. | United States | Financials | Diversified Banks | |||
Bank of America Corp. | United States | Financials | Diversified Banks | |||
Fiat S.p.A. | United Kingdom | Consumer Discretionary | Automobile Manufacturers | |||
Liberty Global, Inc., Series A | United States | Consumer Discretionary | Cable & Satellite | |||
American International Group, Inc. | United States | Financials | Multi-Line Insurance | |||
Chesapeake Energy Corp., 5.750%, Series A Cumulative | United States | Energy | Oil & Gas Exploration & Production | |||
Barclays plc | United Kingdom | Financials | Diversified Banks | |||
Sanofi-Aventis | France | Health Care | Pharmaceuticals | |||
Twenty-First Century Fox, Inc., Class A | United States | Consumer Discretionary | Movies & Entertainment |
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 | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY CUNDILL GLOBAL VALUE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Canada |
| |||||||
Consumer Discretionary – 1.6% |
| |||||||
Hudson’s Bay Co. | 324 | $ | 3,303 | |||||
|
| |||||||
Materials – 1.0% |
| |||||||
Canfor Corp. (A) | 105 | 1,965 | ||||||
|
| |||||||
Total Canada – 2.6% |
| 5,268 | ||||||
China |
| |||||||
Information Technology – 2.2% |
| |||||||
Baidu.com, Inc. ADR (A) | 17 | 4,334 | ||||||
|
| |||||||
Total China – 2.2% |
| 4,334 | ||||||
France |
| |||||||
Health Care – 2.7% |
| |||||||
Sanofi-Aventis | 55 | 5,484 | ||||||
|
| |||||||
Industrials – 3.2% |
| |||||||
Compagnie de Saint-Gobain | 68 | 4,041 | ||||||
Vinci | 26 | 2,476 | ||||||
|
| |||||||
6,517 | ||||||||
|
| |||||||
Total France – 5.9% |
| 12,001 | ||||||
Germany |
| |||||||
Financials – 1.4% |
| |||||||
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares | 13 | 2,743 | ||||||
|
| |||||||
Total Germany – 1.4% |
| 2,743 | ||||||
Hong Kong |
| |||||||
Financials – 0.1% |
| |||||||
First Pacific Co. Ltd. | 257 | 205 | ||||||
|
| |||||||
Real Estate – 1.9% |
| |||||||
Cheung Kong (Holdings) Ltd. | 302 | 3,860 | ||||||
|
| |||||||
Total Hong Kong – 2.0% |
| 4,065 | ||||||
Israel |
| |||||||
Health Care – 1.0% |
| |||||||
Teva Pharmaceutical Industries Ltd. ADR | 110 | 1,928 | ||||||
|
| |||||||
Total Israel – 1.0% |
| 1,928 | ||||||
Japan |
| |||||||
Information Technology – 2.5% |
| |||||||
Hitachi Ltd. | 721 | 5,081 | ||||||
|
| |||||||
Telecommunication Services – 2.5% |
| |||||||
SoftBank Group Corp. | 60 | 4,876 | ||||||
|
| |||||||
Total Japan – 5.0% |
| 9,957 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Luxembourg |
| |||||||
Energy – 1.7% |
| |||||||
Tenaris S.A. | 234 | $ | 3,324 | |||||
|
| |||||||
Total Luxembourg – 1.7% |
| 3,324 | ||||||
South Korea |
| |||||||
Information Technology – 2.6% |
| |||||||
Samsung Electronics Co. Ltd. | 2 | 5,216 | ||||||
|
| |||||||
Materials – 1.9% |
| |||||||
POSCO | 14 | 3,805 | ||||||
|
| |||||||
Total South Korea – 4.5% |
| 9,021 | ||||||
Switzerland |
| |||||||
Health Care – 1.7% |
| |||||||
Novartis AG, Registered Shares | 41 | 3,481 | ||||||
|
| |||||||
Total Switzerland – 1.7% |
| 3,481 | ||||||
United Kingdom |
| |||||||
Consumer Discretionary – 3.8% |
| |||||||
Fiat S.p.A. (A) | 426 | 7,630 | ||||||
|
| |||||||
Financials – 4.6% |
| |||||||
Barclays plc | 2,230 | 5,778 | ||||||
Standard Chartered plc | 347 | 3,445 | ||||||
|
| |||||||
9,223 | ||||||||
|
| |||||||
Industrials – 1.9% |
| |||||||
Weir Group plc (The) | 142 | 3,743 | ||||||
|
| |||||||
Total United Kingdom – 10.3% |
| 20,596 | ||||||
United States |
| |||||||
Consumer Discretionary – 10.1% |
| |||||||
BorgWarner, Inc. | 101 | 5,197 | ||||||
Discovery Communications, Inc. (A) | 100 | 2,025 | ||||||
Liberty Global, Inc., Series A (A) | 223 | 7,546 | ||||||
Twenty-First Century Fox, Inc., Class A | 206 | 5,433 | ||||||
|
| |||||||
20,201 | ||||||||
|
| |||||||
Consumer Staples – 1.8% |
| |||||||
CVS Caremark Corp. | 43 | 3,527 | ||||||
|
| |||||||
Energy – 5.4% |
| |||||||
Apache Corp. | 79 | 3,626 | ||||||
Chesapeake Energy Corp. (A) | 399 | 1,716 | ||||||
Halliburton Co. | 24 | 1,102 | ||||||
Rowan Cos., Inc. (A) | 124 | 1,599 | ||||||
RPC, Inc. | 115 | 2,853 | ||||||
|
| |||||||
10,896 | ||||||||
|
| |||||||
Financials – 21.3% |
| |||||||
American International Group, Inc. | 121 | 7,425 | ||||||
Bank of America Corp. | 379 | 9,597 | ||||||
Citigroup, Inc. | 151 | 11,000 | ||||||
Goldman Sachs Group, Inc. (The) | 19 | 4,544 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Financials (Continued) |
| |||||||
Wells Fargo & Co. | 185 | $ | 10,224 | |||||
|
| |||||||
42,790 | ||||||||
|
| |||||||
Health Care – 7.4% |
| |||||||
Allergan plc | 9 | 1,745 | ||||||
Da Vita, Inc. (A) | 78 | 4,631 | ||||||
HCA Holdings, Inc. (A) | 57 | 4,539 | ||||||
McKesson Corp. | 25 | 3,898 | ||||||
|
| |||||||
14,813 | ||||||||
|
| |||||||
Industrials – 5.5% |
| |||||||
Bristow Group, Inc. | 517 | 4,830 | ||||||
Union Pacific Corp. | 34 | 3,929 | ||||||
Westinghouse Air Brake Technologies Corp. | 28 | 2,135 | ||||||
|
| |||||||
10,894 | ||||||||
|
| |||||||
Information Technology – 2.7% |
| |||||||
International Business Machines Corp. | 37 | 5,399 | ||||||
|
| |||||||
Materials – 3.4% |
| |||||||
Axalta Coating Systems Ltd. (A) | 98 | 2,846 | ||||||
Compass Minerals International, Inc. | 62 | 3,999 | ||||||
|
| |||||||
6,845 | ||||||||
|
| |||||||
Total United States – 57.6% |
| 115,365 | ||||||
TOTAL COMMON STOCKS – 95.9% |
| $ | 192,083 | |||||
(Cost: $154,217) |
| |||||||
PREFERRED STOCKS | ||||||||
United States |
| |||||||
Energy – 3.8% |
| |||||||
Chesapeake Energy Corp., 5.750%, Cumulative | 2 | 1,538 | ||||||
Chesapeake Energy Corp., 5.750%, Series A Cumulative | 11 | 6,126 | ||||||
|
| |||||||
7,664 | ||||||||
|
| |||||||
Total United States – 3.8% |
| 7,664 | ||||||
TOTAL PREFERRED STOCKS – 3.8% |
| $ | 7,664 | |||||
(Cost: $9,876) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (B) – 0.1% |
| |||||||
Federal Home Loan Bank 0.700%, 10-2-17 | $ | 241 | 241 | |||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 0.1% |
| $ | 241 | |||||
(Cost: $241) |
| |||||||
TOTAL INVESTMENT |
| $ | 199,988 | |||||
(Cost: $164,334) |
| |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2% |
| 469 | ||||||
NET ASSETS – 100.0% |
| $ | 200,457 |
2017 | SEMIANNUAL REPORT | 25 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY CUNDILL GLOBAL VALUE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Notes to Schedule of Investments
(A) | No dividends were paid during the preceding 12 months. |
(B) | Rate shown is the yield to maturity at September 30, 2017. |
The following forward foreign currency contracts were outstanding at September 30, 2017:
Currency to be Delivered | Currency to be Received | Settlement Date | Counterparty | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||
Japanese Yen | 979,900 | U.S. Dollar | 8,968 | 11–8–17 | Morgan Stanley International | $ | 245 | $ | — |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 192,083 | $ | — | $ | — | ||||||
Preferred Stocks | 1,538 | 6,126 | — | |||||||||
Short-Term Securities | — | 241 | — | |||||||||
Total | $ | 193,621 | $ | 6,367 | $ | — | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 245 | $ | — |
During the period ended September 30, 2017, 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 | 27.4% | |||
Consumer Discretionary | 15.5% | |||
Health Care | 12.8% | |||
Energy | 10.9% | |||
Industrials | 10.6% | |||
Information Technology | 10.0% | |||
Materials | 6.3% | |||
Telecommunication Services | 2.5% | |||
Real Estate | 1.9% | |||
Consumer Staples | 1.8% | |||
Other+ | 0.3% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
26 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY DIVIDEND OPPORTUNITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 97.0% | |||
Industrials | 16.5% | |||
Financials | 16.1% | |||
Information Technology | 13.8% | |||
Energy | 10.9% | |||
Health Care | 8.7% | |||
Materials | 7.8% | |||
Consumer Staples | 7.6% | |||
Consumer Discretionary | 6.7% | |||
Real Estate | 5.3% | |||
Utilities | 3.6% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 3.0% |
Lipper Rankings
Category: Equity Income Funds | Rank | Percentile | ||||
1 Year | 296/546 | 55 | ||||
3 Year | 379/476 | 80 | ||||
5 Year | 278/369 | 76 | ||||
10 Year | 207/242 | 86 |
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 | ||
Chevron Corp. | Energy | Integrated Oil & Gas | ||
Microsoft Corp. | Information Technology | Systems Software | ||
Wells Fargo & Co. | Financials | Diversified Banks | ||
Lockheed Martin Corp. | Industrials | Aerospace & Defense | ||
Exelon Corp. | Utilities | Electric Utilities | ||
JPMorgan Chase & Co. | Financials | Other Diversified Financial Services | ||
Suncor Energy, Inc. | Energy | Integrated Oil & Gas | ||
Dow Chemical Co. (The) | Materials | Diversified Chemicals | ||
MetLife, Inc. | Financials | Life & Health Insurance |
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. |
2017 | SEMIANNUAL REPORT | 27 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY DIVIDEND OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Advertising – 1.3% |
| |||||||
Omnicom Group, Inc. | 62 | $ | 4,589 | |||||
|
| |||||||
Cable & Satellite – 1.3% |
| |||||||
Comcast Corp., Class A | 120 | 4,619 | ||||||
|
| |||||||
Home Improvement Retail – 3.1% |
| |||||||
Home Depot, Inc. (The) | 70 | 11,457 | ||||||
|
| |||||||
Restaurants – 1.0% |
| |||||||
McDonalds Corp. | 24 | 3,737 | ||||||
|
| |||||||
Total Consumer Discretionary – 6.7% |
| 24,402 | ||||||
Consumer Staples |
| |||||||
Brewers – 1.4% |
| |||||||
Anheuser-Busch InBev S.A. ADR | 44 | 5,302 | ||||||
|
| |||||||
Drug Retail – 1.6% |
| |||||||
CVS Caremark Corp. | 70 | 5,700 | ||||||
|
| |||||||
Personal Products – 1.7% |
| |||||||
Unilever plc (A) | 106 | 6,158 | ||||||
|
| |||||||
Tobacco – 2.9% |
| |||||||
Philip Morris International, Inc. | 96 | 10,657 | ||||||
|
| |||||||
Total Consumer Staples – 7.6% |
| 27,817 | ||||||
Energy |
| |||||||
Integrated Oil & Gas – 8.6% |
| |||||||
Chevron Corp. | 159 | 18,671 | ||||||
Suncor Energy, Inc. | 366 | 12,836 | ||||||
|
| |||||||
31,507 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 2.3% |
| |||||||
Enterprise Products Partners L.P. | 318 | 8,290 | ||||||
|
| |||||||
Total Energy – 10.9% |
| 39,797 | ||||||
Financials |
| |||||||
Diversified Banks – 4.7% |
| |||||||
Wells Fargo & Co. | 309 | 17,052 | ||||||
|
| |||||||
Life & Health Insurance – 3.8% |
| |||||||
MetLife, Inc. | 260 | 13,668 | ||||||
|
| |||||||
Multi-Line Insurance – 1.5% |
| |||||||
American International Group, Inc. | 89 | 5,451 | ||||||
|
| |||||||
Other Diversified Financial Services – 3.5% |
| |||||||
JPMorgan Chase & Co. | 135 | 12,904 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Regional Banks – 2.6% |
| |||||||
KeyCorp. | 513 | $ | 9,650 | |||||
|
| |||||||
Total Financials – 16.1% |
| 58,725 | ||||||
Health Care |
| |||||||
Health Care Equipment – 1.4% |
| |||||||
Medtronic plc | 64 | 5,006 | ||||||
|
| |||||||
Pharmaceuticals – 7.3% |
| |||||||
Eli Lilly and Co. | 91 | 7,767 | ||||||
Pfizer, Inc. | 533 | 19,027 | ||||||
|
| |||||||
26,794 | ||||||||
|
| |||||||
Total Health Care – 8.7% |
| 31,800 | ||||||
Industrials |
| |||||||
Aerospace & Defense – 7.9% |
| |||||||
BAE Systems plc (A) | 280 | 2,367 | ||||||
Lockheed Martin Corp. | 49 | 15,158 | ||||||
United Technologies Corp. | 97 | 11,225 | ||||||
|
| |||||||
28,750 | ||||||||
|
| |||||||
Building Products – 3.0% |
| |||||||
Johnson Controls, Inc. | 272 | 10,963 | ||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 2.1% |
| |||||||
PACCAR, Inc. | 107 | 7,704 | ||||||
|
| |||||||
Electrical Components & Equipment – 2.4% |
| |||||||
Eaton Corp. | 112 | 8,612 | ||||||
|
| |||||||
Railroads – 1.1% |
| |||||||
Union Pacific Corp. | 35 | 4,024 | ||||||
|
| |||||||
Total Industrials – 16.5% |
| 60,053 | ||||||
Information Technology |
| |||||||
Communications Equipment – 2.9% |
| |||||||
Harris Corp. | 56 | 7,309 | ||||||
Nokia Corp., Series A ADR | 549 | 3,280 | ||||||
|
| |||||||
10,589 | ||||||||
|
| |||||||
Data Processing & Outsourced Services – 1.6% |
| |||||||
Paychex, Inc. | 95 | 5,675 | ||||||
|
| |||||||
Semiconductors – 4.4% |
| |||||||
Analog Devices, Inc. | 134 | 11,586 | ||||||
Cypress Semiconductor Corp. | 293 | 4,396 | ||||||
|
| |||||||
15,982 | ||||||||
|
| |||||||
Systems Software – 4.9% |
| |||||||
Microsoft Corp. | 242 | 18,045 | ||||||
|
| |||||||
Total Information Technology – 13.8% |
| 50,291 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Materials |
| |||||||
Diversified Chemicals – 3.5% |
| |||||||
Dow Chemical Co. (The) | 182 | $ | 12,579 | |||||
|
| |||||||
Industrial Gases – 1.0% |
| |||||||
Air Products and Chemicals, Inc. | 24 | 3,696 | ||||||
|
| |||||||
Paper Packaging – 3.3% |
| |||||||
International Paper Co. | 212 | 12,046 | ||||||
|
| |||||||
Total Materials – 7.8% |
| 28,321 | ||||||
Real Estate |
| |||||||
Industrial REITs – 2.5% |
| |||||||
ProLogis, Inc. | 142 | 8,980 | ||||||
|
| |||||||
Specialized REITs – 2.8% |
| |||||||
Crown Castle International Corp. | 50 | 5,009 | ||||||
Life Storage, Inc. | 46 | 3,792 | ||||||
Uniti Group, Inc. | 96 | 1,401 | ||||||
|
| |||||||
10,202 | ||||||||
|
| |||||||
Total Real Estate – 5.3% |
| 19,182 | ||||||
Utilities |
| |||||||
Electric Utilities – 3.6% |
| |||||||
Exelon Corp. | 348 | 13,105 | ||||||
|
| |||||||
Total Utilities – 3.6% |
| 13,105 | ||||||
TOTAL COMMON STOCKS – 97.0% |
| $ | 353,493 | |||||
(Cost: $268,689) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (B) – 2.4% |
| |||||||
Kroger Co. (The), 1.300%, 10-2-17 | $ | 8,643 | 8,642 | |||||
|
| |||||||
Master Note – 0.1% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), 1.450%, 10-4-17 (C) | 392 | 392 | ||||||
|
| |||||||
Municipal Obligations – 0.4% |
| |||||||
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.) (BVAL plus 7 bps), 0.890%, 10-7-17 (C) | 1,500 | 1,500 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 2.9% |
| $ | 10,534 | |||||
(Cost: $10,535) |
| |||||||
TOTAL INVESTMENT |
| $ | 364,027 | |||||
(Cost: $279,224) |
| |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1% |
| 208 | ||||||
NET ASSETS – 100.0% |
| $ | 364,235 |
28 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY DIVIDEND OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Notes to Schedule of Investments
(A) | Listed on an exchange outside the United States. |
(B) | Rate shown is the yield to maturity at September 30, 2017. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 353,493 | $ | — | $ | — | ||||||
Short-Term Securities | — | 10,534 | — | |||||||||
Total | $ | 353,493 | $ | 10,534 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
BVAL = Bloomberg Valuation Municipal AAA Benchmark
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 29 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY EMERGING MARKETS EQUITY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 98.0% | |||
Information Technology | 31.3% | |||
Financials | 20.2% | |||
Consumer Discretionary | 14.4% | |||
Materials | 8.9% | |||
Energy | 7.3% | |||
Consumer Staples | 4.6% | |||
Real Estate | 4.0% | |||
Health Care | 3.2% | |||
Telecommunication Services | 2.1% | |||
Industrials | 2.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 2.0% |
Lipper Rankings
Category: Emerging Markets Funds | Rank | Percentile | ||||
1 Year | 56/811 | 7 | ||||
3 Year | 14/653 | 3 | ||||
5 Year | 20/457 | 5 | ||||
10 Year | 54/187 | 29 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
Pacific Basin | 68.8% | |||
China | 27.1% | |||
South Korea | 13.6% | |||
India | 11.5% | |||
Taiwan | 6.3% | |||
Other Pacific Basin | 10.3% | |||
South America | 16.9% | |||
Brazil | 13.5% | |||
Other South America | 3.4% | |||
Europe | 7.6% | |||
Russia | 5.6% | |||
Other Europe | 2.0% | |||
North America | 2.6% | |||
Other | 2.1% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 2.0% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Samsung Electronics Co. Ltd. | South Korea | Information Technology | Technology Hardware, Storage & Peripherals | |||
Tencent Holdings Ltd. | China | Information Technology | Internet Software & Services | |||
Alibaba Group Holding Ltd. ADR | China | Information Technology | Internet Software & Services | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | Taiwan | Information Technology | Semiconductors | |||
Sberbank of Russia ADR | Russia | Financials | Diversified Banks | |||
Sunny Optical Technology (Group) Co. Ltd. | China | Information Technology | Electronic Components | |||
Petroleo Brasileiro S.A. | Brazil | Energy | Integrated Oil & Gas | |||
Sociedad Quimica y Minera de Chile S.A. ADR | Chile | Materials | Fertilizers & Agricultural Chemicals | |||
Yandex N.V., Class A | Netherlands | Information Technology | Internet Software & Services | |||
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. |
30 | SEMIANNUAL REPORT | 2017 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS | IVY EMERGING MARKETS EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Argentina |
| |||||||
Energy – 1.2% |
| |||||||
YPF Sociedad Anonima ADR | 1,010 | $ | 22,498 | |||||
|
| |||||||
Total Argentina – 1.2% |
| 22,498 | ||||||
Brazil |
| |||||||
Consumer Discretionary – 1.5% |
| |||||||
Kroton Educacional S.A. | 4,359 | 27,485 | ||||||
|
| |||||||
Consumer Staples – 1.3% |
| |||||||
Raia Drogasil S.A. | 1,065 | 25,207 | ||||||
|
| |||||||
Energy – 2.2% |
| |||||||
Petroleo Brasileiro S.A. (A) | 8,412 | 40,743 | ||||||
|
| |||||||
Financials – 4.6% |
| |||||||
Banco Bradesco S.A. | 2,525 | 28,051 | ||||||
Banco do Brasil S.A. | 2,636 | 29,091 | ||||||
Itau Unibanco Holdings S.A. | 2,121 | 29,137 | ||||||
|
| |||||||
86,279 | ||||||||
|
| |||||||
Health Care – 0.5% |
| |||||||
Hypermarcas S.A. | 1,045 | 10,586 | ||||||
|
| |||||||
Information Technology – 1.0% |
| |||||||
MercadoLibre, Inc. | 71 | 18,472 | ||||||
|
| |||||||
Materials – 1.3% |
| |||||||
Vale S.A. | 2,332 | 23,607 | ||||||
|
| |||||||
Real Estate – 1.1% |
| |||||||
BRMalls Participacoes S.A. | 4,457 | 19,925 | ||||||
|
| |||||||
Total Brazil – 13.5% |
| 252,304 | ||||||
Chile |
| |||||||
Materials – 2.2% |
| |||||||
Sociedad Quimica y Minera de Chile S.A. ADR | 732 | 40,741 | ||||||
|
| |||||||
Total Chile – 2.2% |
| 40,741 | ||||||
China |
| |||||||
Consumer Discretionary – 5.0% |
| |||||||
Brilliance China Automotive Holdings Ltd. | 11,912 | 31,718 | ||||||
Geely Automobile Holdings Ltd. | 6,545 | 18,433 | ||||||
JD.com, Inc. ADR (A) | 240 | 9,176 | ||||||
SAIC Motor Corp. Ltd., Class A | 3,351 | 15,225 | ||||||
Sands China Ltd. | 3,430 | 17,852 | ||||||
|
| |||||||
92,404 | ||||||||
|
| |||||||
Consumer Staples – 1.1% |
| |||||||
Kweichow Moutai Co. Ltd., A Shares | 275 | 21,399 | ||||||
|
| |||||||
Financials – 5.4% |
| |||||||
BOC Hong Kong (Holdings) Ltd., H Shares | 40,152 | 19,789 | ||||||
Industrial and Commercial Bank of China Ltd., H Shares | 33,601 | 24,948 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Financials (Continued) |
| |||||||
Ping An Insurance (Group) Co. of China Ltd., H Shares | 4,711 | $ | 36,154 | |||||
ZhongAn Online P&C Insurance Co. Ltd. (A) | 2,410 | 19,578 | ||||||
|
| |||||||
100,469 | ||||||||
|
| |||||||
Information Technology – 13.0% |
| |||||||
Alibaba Group Holding Ltd. ADR (A) | 485 | 83,695 | ||||||
NetEase.com, Inc. ADR | 82 | 21,535 | ||||||
Sunny Optical Technology (Group) Co. Ltd. | 3,205 | 50,962 | ||||||
Tencent Holdings Ltd. | 1,984 | 85,379 | ||||||
|
| |||||||
241,571 | ||||||||
|
| |||||||
Materials – 1.1% |
| |||||||
Aluminum Corp. of China Ltd., H Shares (A) | 22,616 | 20,295 | ||||||
|
| |||||||
Real Estate – 1.5% |
| |||||||
China Overseas Land & Investment Ltd. | 5,670 | 18,437 | ||||||
Logan Property Holdings Co. Ltd. | 9,534 | 9,837 | ||||||
|
| |||||||
28,274 | ||||||||
|
| |||||||
Total China – 27.1% |
| 504,412 | ||||||
Hong Kong |
| |||||||
Consumer Staples – 1.0% |
| |||||||
China Resources Beer (Holdings) Co. Ltd. | 6,738 | 18,242 | ||||||
|
| |||||||
Information Technology – 1.0% |
| |||||||
AAC Technologies Holdings, Inc. | 1,036 | 17,403 | ||||||
|
| |||||||
Real Estate – 0.7% |
| |||||||
China Resources Land Ltd. | 4,253 | 13,011 | ||||||
|
| |||||||
Total Hong Kong – 2.7% |
| 48,656 | ||||||
India |
| |||||||
Consumer Discretionary – 2.9% |
| |||||||
Maruti Suzuki India Ltd. | 301 | 36,719 | ||||||
Page Industries Ltd. | 39 | 10,914 | ||||||
Zee Entertainment Enterprises Ltd. | 857 | 6,824 | ||||||
|
| |||||||
54,457 | ||||||||
|
| |||||||
Consumer Staples – 1.2% |
| |||||||
ITC Ltd. | 1,034 | 4,090 | ||||||
United Spirits Ltd. (A) | 496 | 18,215 | ||||||
|
| |||||||
22,305 | ||||||||
|
| |||||||
Energy – 1.9% |
| |||||||
Reliance Industries Ltd. | 2,934 | 35,072 | ||||||
|
| |||||||
Financials – 4.2% |
| |||||||
HDFC Bank Ltd. | 617 | 17,064 | ||||||
ICICI Bank Ltd. | 3,508 | 14,856 | ||||||
Kotak Mahindra Bank Ltd. | 1,130 | 17,341 | ||||||
RBL Bank Ltd. | 1,519 | 11,786 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Financials (Continued) |
| |||||||
YES BANK Ltd. | 3,409 | $ | 18,268 | |||||
|
| |||||||
79,315 | ||||||||
|
| |||||||
Industrials – 1.3% |
| |||||||
Havells India Ltd. | 1,174 | 8,686 | ||||||
Larsen & Toubro Ltd. | 833 | 14,564 | ||||||
|
| |||||||
23,250 | ||||||||
|
| |||||||
Total India – 11.5% |
| 214,399 | ||||||
Indonesia |
| |||||||
Financials – 1.1% |
| |||||||
PT Bank Mandiri (Persero) Tbk | 41,735 | 20,838 | ||||||
|
| |||||||
Telecommunication Services – 1.0% |
| |||||||
PT Telekomunikasi Indonesia Persero Tbk | 54,518 | 18,943 | ||||||
|
| |||||||
Total Indonesia – 2.1% |
| 39,781 | ||||||
Macau |
| |||||||
Consumer Discretionary – 1.7% |
| |||||||
Galaxy Entertainment Group | 4,429 | 31,185 | ||||||
|
| |||||||
Total Macau – 1.7% |
| 31,185 | ||||||
Malaysia |
| |||||||
Industrials – 0.7% |
| |||||||
Sime Darby Berhad | 6,430 | 13,735 | ||||||
|
| |||||||
Total Malaysia – 0.7% |
| 13,735 | ||||||
Mexico |
| |||||||
Materials – 2.6% |
| |||||||
CEMEX S.A.B. de C.V. (A) | 31,867 | 28,945 | ||||||
Mexichem S.A.B. de C.V. | 7,792 | 20,543 | ||||||
|
| |||||||
49,488 | ||||||||
|
| |||||||
Total Mexico – 2.6% |
| 49,488 | ||||||
Netherlands |
| |||||||
Information Technology – 2.0% |
| |||||||
Yandex N.V., Class A (A) | 1,123 | 37,018 | ||||||
|
| |||||||
Total Netherlands – 2.0% |
| 37,018 | ||||||
Russia |
| |||||||
Energy – 2.0% |
| |||||||
PJSC LUKOIL ADR | 707 | 37,455 | ||||||
|
| |||||||
Financials – 2.9% |
| |||||||
Sberbank of Russia ADR | 3,809 | 54,224 | ||||||
|
| |||||||
Real Estate – 0.7% |
| |||||||
Etalon Group Ltd. GDR | 3,351 | 13,855 | ||||||
|
| |||||||
Total Russia – 5.6% |
| 105,534 |
2017 | SEMIANNUAL REPORT | 31 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS | IVY EMERGING MARKETS EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS (Continued) | Shares | Value | ||||||
South Africa |
| |||||||
Consumer Discretionary – 1.0% |
| |||||||
Naspers Ltd., Class N | 84 | $ | 18,199 | |||||
|
| |||||||
Telecommunication Services – 1.1% |
| |||||||
MTN Group Ltd. | 2,158 | 19,822 | ||||||
|
| |||||||
Total South Africa – 2.1% |
| 38,021 | ||||||
South Korea |
| |||||||
Consumer Discretionary – 1.2% |
| |||||||
Hyundai Motor Co. | 171 | 22,438 | ||||||
|
| |||||||
Health Care – 2.7% |
| |||||||
Hugel, Inc. (A) | 41 | 18,927 | ||||||
Samsung BioLogics Co. Ltd. (A) | 91 | 26,808 | ||||||
Vieworks Co. Ltd. | 159 | 5,441 | ||||||
|
| |||||||
51,176 | ||||||||
|
| |||||||
Information Technology – 8.0% |
| |||||||
Samsung Electronics Co. Ltd. | 52 | 116,498 | ||||||
SK hynix, Inc. | 447 | 32,382 | ||||||
|
| |||||||
148,880 | ||||||||
|
| |||||||
Materials – 1.7% |
| |||||||
POSCO | 116 | 32,117 | ||||||
|
| |||||||
Total South Korea – 13.6% |
| 254,611 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Taiwan |
| |||||||
Information Technology – 6.3% |
| |||||||
Hon Hai Precision Industry Co. Ltd. | 7,715 | $ | 26,715 | |||||
Largan Precision Co. Ltd. | 180 | 31,670 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 8,252 | 58,918 | ||||||
|
| |||||||
117,303 | ||||||||
|
| |||||||
Total Taiwan – 6.3% |
| 117,303 | ||||||
Turkey |
| |||||||
Consumer Discretionary – 1.1% |
| |||||||
Arcelik Anonim Sirketi | 3,299 | 21,034 | ||||||
|
| |||||||
Financials – 2.0% |
| |||||||
Akbank T.A.S. | 6,846 | 18,061 | ||||||
Turkiye Garanti Bankasi A.S. | 6,686 | 18,165 | ||||||
|
| |||||||
36,226 | ||||||||
|
| |||||||
Total Turkey – 3.1% |
| 57,260 | ||||||
TOTAL COMMON STOCKS – 98.0% |
| $ | 1,826,946 | |||||
(Cost: $1,422,290) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (B) – 2.1% |
| |||||||
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.) | ||||||||
1.180%, 10–5–17 | $ | 9,000 | 8,998 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (B) (Continued) |
| |||||||
Mondelez International, Inc. | ||||||||
1.510%, 10–10–17 | $ | 6,000 | $ | 5,997 | ||||
Northern Illinois Gas Co. | ||||||||
1.250%, 10–2–17 | 6,804 | 6,803 | ||||||
Sysco Corp. | ||||||||
1.350%, 10–2–17 | 2,447 | 2,447 | ||||||
Walgreens Boots Alliance, Inc. | ||||||||
1.490%, 10–12–17 | 10,000 | 9,995 | ||||||
Wisconsin Gas LLC | ||||||||
1.180%, 10–5–17 | 5,000 | 4,999 | ||||||
|
| |||||||
39,239 | ||||||||
|
| |||||||
Master Note – 0.1% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) | 1,690 | 1,690 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 2.2% |
| $ | 40,929 | |||||
(Cost: $40,933) |
| |||||||
TOTAL INVESTMENT SECURITIES – 100.2% |
| $ | 1,867,875 | |||||
(Cost: $1,463,223) |
| |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)% |
| (4,205 | ) | |||||
NET ASSETS – 100.0% |
| $ | 1,863,670 |
Notes to Consolidated Schedule of Investments
(A) | No dividends were paid during the preceding 12 months. |
(B) | Rate shown is the yield to maturity at September 30, 2017. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 1,826,946 | $ | — | $ | — | ||||||
Short-Term Securities | — | 40,929 | — | |||||||||
Total | $ | 1,826,946 | $ | 40,929 | $ | — |
During the period ended September 30, 2017, 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
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
32 | SEMIANNUAL REPORT | 2017 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS | IVY EMERGING MARKETS EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Market Sector Diversification | ||||
(as a % of net assets) |
| |||
Information Technology | 31.3% | |||
Financials | 20.2% | |||
Consumer Discretionary | 14.4% | |||
Materials | 8.9% | |||
Energy | 7.3% | |||
Consumer Staples | 4.6% | |||
Real Estate | 4.0% | |||
Health Care | 3.2% | |||
Telecommunication Services | 2.1% | |||
Industrials | 2.0% | |||
Other+ | 2.0% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 33 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY EUROPEAN OPPORTUNITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 98.0% | |||
Financials | 18.2% | |||
Industrials | 16.6% | |||
Consumer Staples | 10.9% | |||
Consumer Discretionary | 10.8% | |||
Information Technology | 10.5% | |||
Energy | 10.0% | |||
Health Care | 6.9% | |||
Materials | 6.7% | |||
Utilities | 5.9% | |||
Telecommunication Services | 1.5% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 2.0% |
Lipper Rankings
Category: European Region Funds | Rank | Percentile | ||||
1 Year | 71/157 | 45 | ||||
3 Year | 56/124 | 45 | ||||
5 Year | 63/98 | 64 | ||||
10 Year | 53/70 | 75 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
Europe | 97.1% | |||
France | 31.1% | |||
United Kingdom | 29.8% | |||
Germany | 9.5% | |||
Netherlands | 6.8% | |||
Italy | 4.1% | |||
Norway | 4.1% | |||
Other Europe | 11.7% | |||
Pacific Basin | 0.9% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 2.0% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
ING Groep N.V., Certicaaten Van Aandelen | Netherlands | Financials | Diversified Banks | |||
Royal Dutch Shell plc, Class A | United Kingdom | Energy | Integrated Oil & Gas | |||
Thales | France | Industrials | Aerospace & Defense | |||
Total S.A. | France | Energy | Integrated Oil & Gas | |||
ENEL S.p.A. | Italy | Utilities | Electric Utilities | |||
HSBC Holdings plc | United Kingdom | Financials | Diversified Banks | |||
Unilever N.V., Certicaaten Van Aandelen | Netherlands | Consumer Staples | Personal Products | |||
Weir Group plc (The) | United Kingdom | Industrials | Industrial Machinery | |||
Prudential plc | United Kingdom | Financials | Life & Health Insurance | |||
Infineon Technologies AG | Germany | 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. |
34 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY EUROPEAN OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Denmark |
| |||||||
Industrials – 1.5% |
| |||||||
Vestas Wind Systems A/S | 46 | $ | 4,092 | |||||
|
| |||||||
Total Denmark – 1.5% |
| 4,092 | ||||||
France |
| |||||||
Consumer Discretionary – 7.3% |
| |||||||
Compagnie Generale des Etablissements Michelin, Class B | 38 | 5,501 | ||||||
LVMH Moet Hennessy - Louis Vuitton | 19 | 5,304 | ||||||
Renault S.A. | 43 | 4,235 | ||||||
Valeo S.A. | 57 | 4,202 | ||||||
|
| |||||||
19,242 | ||||||||
|
| |||||||
Energy – 2.6% |
| |||||||
Total S.A. | 126 | 6,788 | ||||||
|
| |||||||
Financials – 5.5% |
| |||||||
Axa S.A. | 133 | 4,019 | ||||||
BNP Paribas S.A. | 65 | 5,241 | ||||||
Societe Generale S.A. | 91 | 5,304 | ||||||
|
| |||||||
14,564 | ||||||||
|
| |||||||
Health Care – 1.0% |
| |||||||
Innate Pharma S.A. (A) | 210 | 2,548 | ||||||
|
| |||||||
Industrials – 9.6% |
| |||||||
Compagnie de Saint-Gobain | 71 | 4,235 | ||||||
Eiffage S.A. | 33 | 3,437 | ||||||
Schneider Electric S.A. | 56 | 4,891 | ||||||
Thales | 69 | 7,806 | ||||||
Vinci | 53 | 5,073 | ||||||
|
| |||||||
25,442 | ||||||||
|
| |||||||
Information Technology – 3.6% |
| |||||||
Cap Gemini S.A. | 35 | 4,102 | ||||||
Ubisoft Entertainment S.A. (A) | 79 | 5,410 | ||||||
|
| |||||||
9,512 | ||||||||
|
| |||||||
Telecommunication Services – 1.5% |
| |||||||
Orange S.A. | 232 | 3,803 | ||||||
|
| |||||||
Total France – 31.1% |
| 81,899 | ||||||
Germany |
| |||||||
Consumer Discretionary – 1.6% |
| |||||||
Bayerische Motoren Werke AG | 42 | 4,220 | ||||||
|
| |||||||
Health Care – 1.3% |
| |||||||
Fresenius SE & Co. KGaA | 44 | 3,549 | ||||||
|
| |||||||
Industrials – 1.6% |
| |||||||
KION Holding 1 GmbH | 45 | 4,278 | ||||||
|
| |||||||
Information Technology – 3.5% |
| |||||||
Infineon Technologies AG | 226 | 5,687 | ||||||
SAP AG | 34 | 3,714 | ||||||
|
| |||||||
9,401 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Materials – 1.5% |
| |||||||
HeidelbergCement AG | 39 | $ | 3,978 | |||||
|
| |||||||
Total Germany – 9.5% |
| 25,426 | ||||||
Ireland |
| |||||||
Consumer Staples – 1.1% |
| |||||||
Glanbia plc | 160 | 3,008 | ||||||
|
| |||||||
Materials – 1.5% |
| |||||||
CRH plc | 102 | 3,894 | ||||||
|
| |||||||
Total Ireland – 2.6% |
| 6,902 | ||||||
Italy |
| |||||||
Materials – 1.5% |
| |||||||
Buzzi Unicem S.p.A. | 153 | 4,122 | ||||||
|
| |||||||
Utilities – 2.6% |
| |||||||
ENEL S.p.A. | 1,113 | 6,701 | ||||||
|
| |||||||
Total Italy – 4.1% |
| 10,823 | ||||||
Malaysia |
| |||||||
Consumer Staples – 0.9% |
| |||||||
PureCircle Ltd. (A) | 340 | 2,248 | ||||||
|
| |||||||
Total Malaysia – 0.9% |
| 2,248 | ||||||
Netherlands |
| |||||||
Consumer Staples – 3.4% |
| |||||||
Heineken N.V. | 25 | 2,489 | ||||||
Unilever N.V., Certicaaten Van Aandelen | 110 | 6,476 | ||||||
|
| |||||||
8,965 | ||||||||
|
| |||||||
Financials – 3.4% |
| |||||||
ING Groep N.V., Certicaaten Van Aandelen | 493 | 9,096 | ||||||
|
| |||||||
Total Netherlands – 6.8% |
| 18,061 | ||||||
Norway |
| |||||||
Consumer Staples – 2.1% |
| |||||||
Marine Harvest ASA | 281 | 5,549 | ||||||
|
| |||||||
Energy – 0.5% |
| |||||||
DNO International ASA (A) | 913 | 1,252 | ||||||
|
| |||||||
Financials – 1.5% |
| |||||||
DNB ASA | 203 | 4,081 | ||||||
|
| |||||||
Total Norway – 4.1% |
| 10,882 | ||||||
Russia |
| |||||||
Energy – 1.6% |
| |||||||
PJSC LUKOIL ADR | 79 | 4,177 | ||||||
|
| |||||||
Total Russia – 1.6% |
| 4,177 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Spain |
| |||||||
Utilities – 1.4% |
| |||||||
Iberdrola S.A. | 485 | $ | 3,767 | |||||
|
| |||||||
Total Spain – 1.4% |
| 3,767 | ||||||
Sweden |
| |||||||
Financials – 1.2% |
| |||||||
Skandinaviska Enskilda Banken AB, Series A | 251 | 3,306 | ||||||
|
| |||||||
Total Sweden – 1.2% |
| 3,306 | ||||||
Switzerland |
| |||||||
Financials – 1.9% |
| |||||||
UBS Group AG | 291 | 4,965 | ||||||
|
| |||||||
Information Technology – 1.5% |
| |||||||
STMicroelectronics N.V. | 203 | 3,931 | ||||||
|
| |||||||
Total Switzerland – 3.4% |
| 8,896 | ||||||
United Kingdom |
| |||||||
Consumer Discretionary – 1.9% |
| |||||||
GKN plc | 1,130 | 5,240 | ||||||
|
| |||||||
Consumer Staples – 3.4% |
| |||||||
British American Tobacco plc | 84 | 5,265 | ||||||
Diageo plc | 116 | 3,804 | ||||||
|
| |||||||
9,069 | ||||||||
|
| |||||||
Energy – 5.3% |
| |||||||
Royal Dutch Shell plc, Class A | 285 | 8,580 | ||||||
Tullow Oil plc (A) | 2,279 | 5,684 | ||||||
|
| |||||||
14,264 | ||||||||
|
| |||||||
Financials – 4.7% |
| |||||||
HSBC Holdings plc | 666 | 6,578 | ||||||
Prudential plc | 240 | 5,751 | ||||||
|
| |||||||
12,329 | ||||||||
|
| |||||||
Health Care – 4.6% |
| |||||||
AstraZeneca plc | 66 | 4,400 | ||||||
GlaxoSmithKline plc | 197 | 3,921 | ||||||
Shire plc | 78 | 3,963 | ||||||
|
| |||||||
12,284 | ||||||||
|
| |||||||
Industrials – 3.9% |
| |||||||
Ashtead Group plc | 187 | 4,505 | ||||||
Weir Group plc (The) | 219 | 5,753 | ||||||
|
| |||||||
10,258 | ||||||||
|
| |||||||
Information Technology – 1.9% |
| |||||||
Imagination Technologies Group plc (A) | 595 | 1,338 | ||||||
JUST EAT plc (A) | 417 | 3,736 | ||||||
|
| |||||||
5,074 | ||||||||
|
| |||||||
Materials – 2.2% |
| |||||||
Mondi plc | 95 | 2,552 | ||||||
Rio Tinto plc | 70 | 3,253 | ||||||
|
| |||||||
5,805 | ||||||||
|
|
2017 | SEMIANNUAL REPORT | 35 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY EUROPEAN OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS (Continued) | Shares | Value | ||||||
Utilities – 1.9% |
| |||||||
National Grid plc | 408 | $ | 5,059 | |||||
|
| |||||||
Total United Kingdom – 29.8% |
| 79,382 | ||||||
TOTAL COMMON STOCKS – 98.0% |
| $ | 259,861 | |||||
(Cost: $214,628) |
| |||||||
SHORT–TERM SECURITIES | Principal | |||||||
Commercial Paper (B) – 1.4% |
| |||||||
Sysco Corp. | ||||||||
1.350%, 10–2–17 | $ | 3,735 | 3,735 | |||||
|
|
SHORT–TERM SECURITIES (Continued) | Principal | Value | ||||||
Master Note – 0.4% |
| |||||||
Toyota Motor Credit Corp. (1–Month U.S. LIBOR plus 15 bps) | ||||||||
1.450%, 10-4-17 (C) | $ | 1,126 | $ | 1,126 | ||||
|
| |||||||
TOTAL SHORT–TERM |
| $ | 4,861 | |||||
(Cost: $4,861) |
| |||||||
TOTAL INVESTMENT |
| $ | 264,722 | |||||
(Cost: $219,489) |
| |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES(D) – 0.2% |
| 570 | ||||||
NET ASSETS – 100.0% |
| $ | 265,292 |
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, 2017. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
(D) | Cash of $975 is held in collateralized accounts for OTC foreign forward currency contracts collateral. |
The following forward foreign currency contracts were outstanding at September 30, 2017:
Currency to be Delivered | Currency to be Received | Settlement Date | Counterparty | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||
British Pound | 9,649 | U.S. Dollar | 12,465 | 10-5-17 | Citibank N.A. | $ | — | $ | 465 |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 259,861 | $ | — | $ | — | ||||||
Short-Term Securities | — | 4,861 | — | |||||||||
Total | $ | 259,861 | $ | 4,861 | $ | — | ||||||
Liabilities | ||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 465 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipt
LIBOR = London Interbank Offered Rate
OTC = Over the Counter
36 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY EUROPEAN OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Market Sector Diversification | ||||
(as a % of net assets) |
| |||
Financials | 18.2% | |||
Industrials | 16.6% | |||
Consumer Staples | 10.9% | |||
Consumer Discretionary | 10.8% | |||
Information Technology | 10.5% | |||
Energy | 10.0% | |||
Health Care | 6.9% | |||
Materials | 6.7% | |||
Utilities | 5.9% | |||
Telecommunication Services | 1.5% | |||
Other+ | 2.0% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 37 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY GLOBAL BOND FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 5.4% | |||
Utilities | 2.2% | |||
Energy | 1.5% | |||
Information Technology | 0.9% | |||
Financials | 0.8% | |||
Bonds | 87.1% | |||
Corporate Debt Securities | 49.6% | |||
United States Government and Government Agency Obligations | 23.7% | |||
Other Government Securities | 13.4% | |||
Loans | 0.4% | |||
Cash and Other Assets (Net of Liabilities), | 7.5% |
Quality Weightings
Investment Grade | 49.9% | |||
AA | 24.9% | |||
A | 6.1% | |||
BBB | 18.9% | |||
Non-Investment Grade | 37.2% | |||
BB | 21.0% | |||
B | 11.3% | |||
CCC | 1.8% | |||
Non-rated | 3.1% | |||
Cash and Other Assets (Net of Liabilities), | 12.9% |
Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s. For securities not rated by Moody’s, ratings are obtained from Fitch. 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: Global Income Funds | Rank | Percentile | ||||
1 Year | 29/210 | 14 | ||||
3 Year | 87/192 | 46 | ||||
5 Year | 55/175 | 32 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
North America | 46.2% | |||
United States | 37.1% | |||
Mexico | 4.8% | |||
Other North America | 4.3% | |||
Europe | 19.1% | |||
United Kingdom | 6.1% | |||
Luxembourg | 3.9% | |||
Other Europe | 9.1% | |||
South America | 18.4% | |||
Brazil | 5.3% | |||
Argentina | 4.6% | |||
Chile | 3.9% | |||
Columbia | 3.5% | |||
Other South America | 1.1% | |||
Pacific Basin | 4.5% | |||
Other | 1.0% | |||
Bahamas/Caribbean | 0.9% | |||
Middle East | 2.4% | |||
Cash and Other Assets (Net of Liabilities), | 7.5% |
+ | 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. |
38 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Brazil |
| |||||||
Utilities – 1.3% |
| |||||||
Alupar Investimento S.A. | 212 | $ | 1,254 | |||||
Transmissora Alianca de Energia Eletrica S.A. | 181 | 1,268 | ||||||
|
| |||||||
2,522 | ||||||||
|
| |||||||
Total Brazil – 1.3% |
| 2,522 | ||||||
Chile |
| |||||||
Utilities – 0.4% |
| |||||||
Aguas Andinas S.A. | 1,051 | 668 | ||||||
|
| |||||||
Total Chile – 0.4% |
| 668 | ||||||
Panama |
| |||||||
Financials – 0.8% |
| |||||||
Banco Latinoamericano de Comercio Exterior S.A. | 52 | 1,527 | ||||||
|
| |||||||
Total Panama – 0.8% |
| 1,527 | ||||||
United Kingdom |
| |||||||
Energy – 1.5% |
| |||||||
Royal Dutch Shell plc, Class A | 87 | 2,613 | ||||||
Seadrill Partners LLC | 31 | 117 | ||||||
|
| |||||||
2,730 | ||||||||
|
| |||||||
Total United Kingdom – 1.5% |
| 2,730 | ||||||
United States |
| |||||||
Information Technology – 0.9% |
| |||||||
Intel Corp. | 46 | 1,756 | ||||||
|
| |||||||
Utilities – 0.5% |
| |||||||
PPL Corp. | 24 | 928 | ||||||
|
| |||||||
Total United States – 1.4% |
| 2,684 | ||||||
TOTAL COMMON STOCKS – 5.4% |
| $ | 10,131 | |||||
(Cost: $10,322) |
| |||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Argentina |
| |||||||
Energy – 1.7% |
| |||||||
Pan American Energy LLC: | ||||||||
7.875%, 5–7–21 (A) | $ | 1,000 | 1,079 | |||||
7.875%, 5–7–21 | 500 | 540 | ||||||
YPF Sociedad Anonima: | ||||||||
8.875%, 12–19–18 (A) | 1,300 | 1,388 | ||||||
8.500%, 3–23–21 (A) | 250 | 281 | ||||||
|
| |||||||
3,288 | ||||||||
|
| |||||||
Total Argentina – 1.7% |
| 3,288 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Austria |
| |||||||
Consumer Staples – 0.3% |
| |||||||
ESAL GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.) | ||||||||
6.250%, 2–5–23 (A) | $ | 500 | $ | 485 | ||||
|
| |||||||
Total Austria – 0.3% |
| 485 | ||||||
Brazil |
| |||||||
Consumer Staples – 0.3% |
| |||||||
Cosan Ltd. | ||||||||
5.950%, 9–20–24 (A) | 450 | 461 | ||||||
|
| |||||||
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 | 75 | ||||||
|
| |||||||
Materials – 1.9% |
| |||||||
Suzano Trading Ltd. | ||||||||
5.875%, 1–23–21 (A) | 2,500 | 2,697 | ||||||
Vale Overseas Ltd.: | ||||||||
4.625%, 9–15–20 | 500 | 529 | ||||||
6.250%, 8–10–26 | 425 | 484 | ||||||
|
| |||||||
3,710 | ||||||||
|
| |||||||
Total Brazil – 2.2% |
| 4,246 | ||||||
British Virgin Islands |
| |||||||
Energy – 0.3% |
| |||||||
QGOG Atlantic/Alaskan Rigs Ltd.: | ||||||||
5.250%, 7–30–18 (A) | 532 | 521 | ||||||
5.250%, 7–30–18 | 58 | 57 | ||||||
|
| |||||||
578 | ||||||||
|
| |||||||
Total British Virgin Islands – 0.3% |
| 578 | ||||||
Canada |
| |||||||
Financials – 3.2% |
| |||||||
Bank of Montreal | ||||||||
1.800%, 7–31–18 | 1,100 | 1,102 | ||||||
Canadian Imperial Bank of Commerce | ||||||||
2.100%, 10–5–20 | 5,000 | 4,998 | ||||||
|
| |||||||
6,100 | ||||||||
|
| |||||||
Total Canada – 3.2% |
| 6,100 | ||||||
Cayman Islands |
| |||||||
Industrials – 0.2% |
| |||||||
Guanay Finance Ltd. | ||||||||
6.000%, 12–15–20 | 295 | 302 | ||||||
|
| |||||||
Telecommunication Services – 0.7% |
| |||||||
Sable International Finance Ltd. | ||||||||
6.875%, 8–1–22 (A) | 1,200 | 1,290 | ||||||
|
| |||||||
Total Cayman Islands – 0.9% |
| 1,592 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Chile |
| |||||||
Industrials – 1.4% |
| |||||||
Guanay Finance Ltd. | ||||||||
6.000%, 12–15–20 (A) | $ | 1,028 | $ | 1,054 | ||||
LATAM Airlines Group S.A. | ||||||||
7.250%, 6–9–20 (A) | 1,500 | 1,606 | ||||||
|
| |||||||
2,660 | ||||||||
|
| |||||||
Materials – 2.1% |
| |||||||
Inversiones CMPC S.A. (GTD by Empresas CMPC S.A.): | ||||||||
4.750%, 1–19–18 (A) | 2,925 | 2,932 | ||||||
4.375%, 5–15–23 (A) | 1,000 | 1,034 | ||||||
|
| |||||||
3,966 | ||||||||
|
| |||||||
Total Chile – 3.5% |
| 6,626 | ||||||
China |
| |||||||
Information Technology – 0.5% |
| |||||||
Alibaba Group Holding Ltd. | ||||||||
2.500%, 11–28–19 | 1,000 | 1,008 | ||||||
|
| |||||||
Total China – 0.5% |
| 1,008 | ||||||
Columbia |
| |||||||
Financials – 0.3% |
| |||||||
Banco de Bogota S.A. | ||||||||
5.375%, 2–19–23 (A) | 500 | 530 | ||||||
|
| |||||||
Utilities – 2.1% |
| |||||||
Emgesa S.A. E.S.P. | ||||||||
8.750%, 1–25–21 (C) | COP 4,880,000 | 1,734 | ||||||
Empresas Publicas de Medellin E.S.P. | ||||||||
8.375%, 2–1–21 (C) | 6,300,000 | 2,219 | ||||||
|
| |||||||
3,953 | ||||||||
|
| |||||||
Total Columbia – 2.4% |
| 4,483 | ||||||
France |
| |||||||
Consumer Staples – 0.4% |
| |||||||
Pernod Ricard S.A. | ||||||||
4.250%, 7–15–22 (A) | $ | 750 | 805 | |||||
|
| |||||||
Financials – 0.4% |
| |||||||
BNP Paribas S.A. | ||||||||
7.625%, 12–29–49 (A) | 700 | 769 | ||||||
|
| |||||||
Total France – 0.8% |
| 1,574 | ||||||
Hong Kong |
| |||||||
Telecommunication Services – 0.5% |
| |||||||
Hutchison Whampoa Ltd. | ||||||||
1.625%, 10–31–17 (A) | 1,000 | 1,000 | ||||||
|
| |||||||
Total Hong Kong – 0.5% |
| 1,000 |
2017 | SEMIANNUAL REPORT | 39 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
India |
| |||||||
Industrials – 0.7% |
| |||||||
Adani Ports and Special Economic Zone Ltd. | ||||||||
3.500%, 7–29–20 (A) | $ | 1,300 | $ | 1,323 | ||||
|
| |||||||
Materials – 0.4% |
| |||||||
Vedanta Resources plc | ||||||||
6.375%, 7–30–22 (A) | 800 | 832 | ||||||
|
| |||||||
Total India – 1.1% |
| 2,155 | ||||||
Ireland |
| |||||||
Financials – 0.4% |
| |||||||
MTS International Funding Ltd. | ||||||||
5.000%, 5–30–23 (A) | 750 | 779 | ||||||
|
| |||||||
Telecommunication Services – 0.4% |
| |||||||
Mobile TeleSystems OJSC | ||||||||
5.000%, 5–30–23 | 700 | 726 | ||||||
|
| |||||||
Total Ireland – 0.8% |
| 1,505 | ||||||
Luxembourg |
| |||||||
Consumer Discretionary – 0.7% |
| |||||||
Altice S.A. | ||||||||
7.625%, 2–15–25 (A) | 1,150 | 1,240 | ||||||
|
| |||||||
Financials – 1.6% |
| |||||||
OJSC Russian Agricultural Bank | ||||||||
5.100%, 7–25–18 (A) | 2,950 | 2,999 | ||||||
|
| |||||||
Industrials – 0.4% |
| |||||||
JSL Europe (GTD by JSL S.A.) | ||||||||
7.750%, 7–26–24 (A) | 750 | 790 | ||||||
|
| |||||||
Total Luxembourg – 2.7% |
| 5,029 | ||||||
Mexico |
| |||||||
Consumer Staples – 0.4% |
| |||||||
Grupo Bimbo S.A.B. de C.V. | ||||||||
4.875%, 6–30–20 (A) | 750 | 802 | ||||||
|
| |||||||
Financials – 0.8% |
| |||||||
Banco Santander S.A. | ||||||||
4.125%, 11–9–22 (A) | 850 | 891 | ||||||
Unifin Financiera S.A.B. de C.V. SOFOM E.N.R. | ||||||||
7.250%, 9–27–23 (A) | 500 | 520 | ||||||
|
| |||||||
1,411 | ||||||||
|
| |||||||
Materials – 2.6% |
| |||||||
C5 Capital (SPV) Ltd. (3–Month U.S. LIBOR plus 428 bps) | ||||||||
5.573%, 12–29–49 (A)(D) | 1,600 | 1,512 | ||||||
CEMEX S.A.B. de C.V.: | ||||||||
6.500%, 12–10–19 (A) | 2,100 | 2,184 | ||||||
7.250%, 1–15–21 (A) | 1,200 | 1,261 | ||||||
|
| |||||||
4,957 | ||||||||
|
| |||||||
Total Mexico – 3.8% |
| 7,170 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Netherlands |
| |||||||
Consumer Discretionary – 1.4% |
| |||||||
Myriad International Holdings B.V. | ||||||||
6.000%, 7–18–20 (A) | $ | 900 | $ | 971 | ||||
VTR Finance B.V. | ||||||||
6.875%, 1–15–24 (A) | 1,680 | 1,777 | ||||||
|
| |||||||
2,748 | ||||||||
|
| |||||||
Consumer Staples – 0.6% |
| |||||||
Marfrig Holdings (Europe) B.V.: | ||||||||
6.875%, 6–24–19 (A) | 500 | 515 | ||||||
8.000%, 6–8–23 (A) | 550 | 569 | ||||||
|
| |||||||
1,084 | ||||||||
|
| |||||||
Energy – 0.9% |
| |||||||
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.): | ||||||||
4.875%, 3–17–20 | 1,375 | 1,428 | ||||||
8.375%, 5–23–21 | 300 | 347 | ||||||
|
| |||||||
1,775 | ||||||||
|
| |||||||
Materials – 0.1% |
| |||||||
Cimpor Financial Operations B.V. (GTD by InterCement Participacoes S.A. and InterCement Brasil S.A.) | ||||||||
5.750%, 7–17–24 (A) | 250 | 235 | ||||||
|
| |||||||
Utilities – 0.3% |
| |||||||
Majapahit Holding B.V. | ||||||||
7.750%, 1–20–20 (A) | 500 | 558 | ||||||
|
| |||||||
Total Netherlands – 3.3% |
| 6,400 | ||||||
Norway |
| |||||||
Energy – 0.3% |
| |||||||
Aker BP ASA | ||||||||
6.000%, 7–1–22 (A) | 500 | 520 | ||||||
|
| |||||||
Total Norway – 0.3% |
| 520 | ||||||
Peru |
| |||||||
Materials – 0.4% |
| |||||||
San Miguel Industrias PET S.A. | ||||||||
4.500%, 9–18–22 (A) | 750 | 758 | ||||||
|
| |||||||
Real Estate – 0.7% |
| |||||||
InRetail Shopping Malls | ||||||||
5.250%, 10–10–21 (A) | 1,300 | 1,342 | ||||||
|
| |||||||
Total Peru – 1.1% |
| 2,100 | ||||||
Qatar |
| |||||||
Energy – 0.1% |
| |||||||
Ras Laffan Liquefied Natural Gas Co. Ltd. II | ||||||||
5.298%, 9–30–20 (A) | 283 | 292 | ||||||
|
| |||||||
Total Qatar – 0.1% |
| 292 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Russia |
| |||||||
Materials – 0.6% |
| |||||||
Uralkali Finance Ltd. | ||||||||
3.723%, 4–30–18 (A) | $ | 1,100 | $ | 1,101 | ||||
|
| |||||||
Total Russia – 0.6% |
| 1,101 | ||||||
Singapore |
| |||||||
Consumer Staples – 1.4% |
| |||||||
Olam International Ltd. | ||||||||
7.500%, 8–12–20 | 2,500 | 2,733 | ||||||
|
| |||||||
Total Singapore – 1.4% |
| 2,733 | ||||||
Spain |
| |||||||
Financials – 0.9% |
| |||||||
Banco Bilbao Vizcaya Argentaria S.A. | ||||||||
9.000%, 5–29–49 | 1,600 | 1,656 | ||||||
|
| |||||||
Total Spain – 0.9% |
| 1,656 | ||||||
United Arab Emirates |
| |||||||
Financials – 1.0% |
| |||||||
ICICI Bank Ltd.: | ||||||||
4.800%, 5–22–19 (A) | 500 | 518 | ||||||
3.500%, 3–18–20 (A) | 1,400 | 1,426 | ||||||
|
| |||||||
1,944 | ||||||||
|
| |||||||
Total United Arab Emirates – 1.0% |
| 1,944 | ||||||
United Kingdom |
| |||||||
Consumer Staples – 0.3% |
| |||||||
Imperial Tobacco Finance plc | ||||||||
3.750%, 7–21–22 (A) | 550 | 572 | ||||||
|
| |||||||
Financials – 4.3% |
| |||||||
Barclays plc | ||||||||
8.250%, 12–29–49 | 1,500 | 1,584 | ||||||
HSBC Holdings plc | ||||||||
5.625%, 12–29–49 | 1,200 | 1,232 | ||||||
Industrial and Commercial Bank of China Ltd. | ||||||||
2.250%, 12–21–18 | 550 | 550 | ||||||
State Bank of India: | ||||||||
3.250%, 4–18–18 (A) | 3,750 | 3,774 | ||||||
3.622%, 4–17–19 (A) | 1,000 | 1,018 | ||||||
|
| |||||||
8,158 | ||||||||
|
| |||||||
Total United Kingdom – 4.6% |
| 8,730 | ||||||
United States |
| |||||||
Consumer Staples – 0.9% |
| |||||||
Anheuser–Busch InBev Worldwide, Inc. (GTD by AB INBEV/BBR/COB) | ||||||||
2.200%, 8–1–18 | 854 | 858 | ||||||
Bunge Ltd. Finance Corp. | ||||||||
3.500%, 11–24–20 | 800 | 823 | ||||||
|
| |||||||
1,681 | ||||||||
|
|
40 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Energy – 0.5% |
| |||||||
Brand Energy & Infrastructure Services, Inc. | ||||||||
8.500%, 7–15–25 (A) | $ | 850 | $ | 920 | ||||
|
| |||||||
Financials – 1.6% |
| |||||||
BBVA Bancomer S.A. | ||||||||
6.500%, 3–10–21 (A) | 400 | 442 | ||||||
Citigroup, Inc. | ||||||||
8.400%, 4–29–49 | 1,250 | 1,303 | ||||||
Diamond 1 Finance Corp. and Diamond 2 Finance Corp. | ||||||||
3.480%, 6–1–19 (A) | 450 | 458 | ||||||
Wells Fargo & Co. | ||||||||
7.980%, 3–29–49 | 750 | 772 | ||||||
|
| |||||||
2,975 | ||||||||
|
| |||||||
Health Care – 0.4% |
| |||||||
Fresenius U.S. Finance II, Inc. | ||||||||
4.500%, 1–15–23 (A) | 675 | 716 | ||||||
|
| |||||||
Industrials – 1.1% |
| |||||||
BAE Systems Holdings, Inc. | ||||||||
2.850%, 12–15–20 (A) | 475 | 481 | ||||||
TransDigm, Inc. (GTD by TransDigm Group, Inc.) | ||||||||
6.000%, 7–15–22 | 1,607 | 1,667 | ||||||
|
| |||||||
2,148 | ||||||||
|
| |||||||
Information Technology – 2.4% |
| |||||||
Alliance Data Systems Corp. | ||||||||
5.250%, 12–1–17 (A) | 3,300 | 3,311 | ||||||
L–3 Communications Corp. | ||||||||
5.200%, 10–15–19 | 1,000 | 1,063 | ||||||
|
| |||||||
4,374 | ||||||||
|
| |||||||
Materials – 1.1% |
| |||||||
BakerCorp International, Inc. | ||||||||
8.250%, 6–1–19 | 725 | 674 | ||||||
Hillman Group, Inc. (The) | ||||||||
6.375%, 7–15–22 (A) | 1,218 | 1,212 | ||||||
|
| |||||||
1,886 | ||||||||
|
| |||||||
Real Estate – 1.0% |
| |||||||
Aircastle Ltd. | ||||||||
4.625%, 12–15–18 | 1,900 | 1,950 | ||||||
|
| |||||||
Telecommunication Services – 2.6% |
| |||||||
American Tower Corp. | ||||||||
3.400%, 2–15–19 | 1,400 | 1,425 | ||||||
T–Mobile USA, Inc. | ||||||||
6.000%, 3–1–23 | 2,977 | 3,137 | ||||||
Verizon Communications, Inc. | ||||||||
2.625%, 2–21–20 | 410 | 417 | ||||||
|
| |||||||
4,979 | ||||||||
|
| |||||||
Total United States – 11.6% |
| 21,629 | ||||||
TOTAL CORPORATE DEBT SECURITIES – 49.6% |
| $ | 93,944 | |||||
(Cost: $95,567) |
|
OTHER GOVERNMENT SECURITIES (E) | Principal | Value | ||||||
Argentina – 2.9% |
| |||||||
Aeropuertos Argentina 2000 S.A. | ||||||||
6.875%, 2–1–27 (A) | $ | 225 | $ | 240 | ||||
Province of Buenos Aires | ||||||||
9.950%, 6–9–21 | 1,596 | 1,838 | ||||||
Republic of Argentina | ||||||||
5.625%, 1–26–22 | 250 | 262 | ||||||
6.875%, 4–22–21 | 3,000 | 3,267 | ||||||
|
| |||||||
5,607 | ||||||||
|
| |||||||
Brazil – 1.8% |
| |||||||
Banco Nacional de Desenvolvimento Economico e Social | ||||||||
4.750%, 5–9–24 (A) | 700 | 706 | ||||||
Federative Republic of Brazil | ||||||||
4.875%, 1–22–21 | 2,600 | 2,782 | ||||||
|
| |||||||
3,488 | ||||||||
|
| |||||||
Columbia – 1.1% |
| |||||||
Republic of Colombia | ||||||||
4.375%, 7–12–21 | 1,850 | 1,974 | ||||||
|
| |||||||
Indonesia – 1.0% |
| |||||||
Republic of Indonesia | ||||||||
3.750%, 4–25–22 (A) | 1,850 | 1,920 | ||||||
|
| |||||||
Luxembourg – 1.2% |
| |||||||
Atento Luxco 1 S.A. | ||||||||
6.125%, 8–10–22 (A) | 1,125 | 1,175 | ||||||
Rumo Luxembourg S.a.r.l. | ||||||||
7.375%, 2–9–24 (A) | 1,000 | 1,082 | ||||||
|
| |||||||
2,257 | ||||||||
|
| |||||||
Mexico – 1.0% |
| |||||||
United Mexican States | ||||||||
3.625%, 3–15–22 | 1,850 | 1,939 | ||||||
|
| |||||||
Poland – 0.7% |
| |||||||
Republic of Poland | ||||||||
5.125%, 4–21–21 | 1,250 | 1,370 | ||||||
|
| |||||||
Qatar – 0.9% |
| |||||||
Qatar Government Bond | ||||||||
2.375%, 6–2–21(A) | 1,800 | 1,773 | ||||||
|
| |||||||
Russia – 0.7% |
| |||||||
Russian Federation | ||||||||
3.500%, 1–16–19 (A) | 1,200 | 1,218 | ||||||
|
| |||||||
Saudi Arabia – 0.4% |
| |||||||
Saudi Arabia Government Bond | ||||||||
2.375%, 10–26–21 (A) | 750 | 740 | ||||||
|
| |||||||
South Africa – 1.0% |
| |||||||
Republic of South Africa | ||||||||
5.500%, 3–9–20 | 1,850 | 1,968 | ||||||
|
| |||||||
Turkey – 0.7% |
| |||||||
Turkey Government Bond | ||||||||
5.125%, 3–25–22 | 1,300 | 1,361 | ||||||
|
|
OTHER GOVERNMENT SECURITIES (E) (Continued) | Value | |||||||
TOTAL OTHER GOVERNMENT SECURITIES – 13.4% |
| $ | 25,615 | |||||
(Cost: $25,033) |
| |||||||
LOANS (D) | Principal | |||||||
United States |
| |||||||
Materials – 0.4% |
| |||||||
BakerCorp International, Inc. (ICE LIBOR plus 300 bps) | ||||||||
4.311%, 2–7–20 | $ | 873 | 839 | |||||
|
| |||||||
Total United States – 0.4% |
| 839 | ||||||
TOTAL LOANS – 0.4% | $ | 839 | ||||||
(Cost: $866) | ||||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | ||||||||
United States – 0.0% | ||||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO | ||||||||
4.000%, 2–15–24 (F) | 41 | 1 | ||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates | ||||||||
5.000%, 3–1–22 | 29 | 30 | ||||||
|
| |||||||
31 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0% | $ | 31 | ||||||
(Cost: $91) | ||||||||
UNITED STATES GOVERNMENT OBLIGATIONS | ||||||||
United States – 23.7% | ||||||||
U.S. Treasury Bonds | ||||||||
2.250%, 11–15–25 | 3,550 | 3,548 | ||||||
U.S. Treasury Notes: | ||||||||
1.000%, 9–15–18 | 4,000 | 3,986 | ||||||
1.000%, 10–15–19 | 4,000 | 3,960 | ||||||
3.500%, 5–15–20 | 1,980 | 2,078 | ||||||
2.625%, 11–15–20 | 4,500 | 4,631 | ||||||
2.125%, 8–15–21 | 3,500 | 3,544 | ||||||
1.125%, 9–30–21 | 4,000 | 3,894 | ||||||
1.250%, 10–31–21 | 1,700 | 1,661 | ||||||
1.750%, 11–30–21 | 1,600 | 1,594 | ||||||
1.875%, 1–31–22 | 3,000 | 3,000 | ||||||
1.750%, 5–15–22 | 7,475 | 7,433 | ||||||
1.875%, 9–30–22 | 4,000 | 3,989 | ||||||
1.500%, 8–15–26 | 1,700 | 1,591 | ||||||
|
| |||||||
44,909 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 23.7% |
| $ | 44,909 | |||||
(Cost: $44,785) |
2017 | SEMIANNUAL REPORT | 41 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
SHORT–TERM SECURITIES | Principal | Value | ||||||
Commercial Paper (G) – 7.4% | ||||||||
BorgWarner, Inc. | ||||||||
1.380%, 10–5–17 | $ | 4,000 | $ | 3,999 | ||||
John Deere Canada ULC (GTD by Deere & Co.) | ||||||||
1.190%, 10–23–17 | 5,000 | 4,996 | ||||||
Medtronic Global Holdings SCA | ||||||||
1.580%, 10–10–17 | 5,000 | 4,998 | ||||||
|
| |||||||
13,993 | ||||||||
|
|
SHORT–TERM SECURITIES (Continued) | Principal | Value | ||||||
Master Note – 3.5% | ||||||||
Toyota Motor Credit Corp. | ||||||||
1.450%, 10–4–17 (H) | $ | 6,578 | $ | 6,578 | ||||
|
| |||||||
TOTAL SHORT–TERM SECURITIES – 10.9% | $ | 20,571 | ||||||
(Cost: $20,572) | ||||||||
TOTAL INVESTMENT SECURITIES – 103.4% | $ | 196,040 | ||||||
(Cost: $197,236) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (3.4)% |
| (6,382 | ) | |||||
NET ASSETS – 100.0% |
| $ | 189,658 |
Notes to Schedule of Investments
* | Not shown due to rounding. |
(A) | Securities were purchased pursuant to an exemption from registration available under Rule 144A under the Securities Act of 1933 and may only be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2017 the total value of these securities amounted to $65,480 or 34.5% 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). |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description. |
(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, 2017. |
(H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 10,131 | $ | — | $ | — | ||||||
Corporate Debt Securities | — | 93,944 | — | |||||||||
Other Government Securities | — | 25,615 | — | |||||||||
Loans | — | 839 | — | |||||||||
United States Government Agency Obligations | — | 31 | — | |||||||||
United States Government Obligations | — | 44,909 | — | |||||||||
Short-Term Securities | — | 20,571 | — | |||||||||
Total | $ | 10,131 | $ | 185,909 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
42 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
The following acronyms are used throughout this schedule:
CMO = Collateralized Mortgage Obligation
GTD = Guaranteed
ICE = Intercontinental Exchange
LIBOR = London Interbank Offered Rate
REMIC = Real Estate Mortgage Investment Conduit
Market Sector Diversification | ||||
(as a % of net assets) | ||||
United States Government and Government Agency Obligations | 23.7% | |||
Financials | 15.3% | |||
Other Government Securities | 13.4% | |||
Materials | 9.6% | |||
Energy | 5.3% | |||
Utilities | 4.6% | |||
Consumer Staples | 4.6% | |||
Telecommunication Services | 4.2% | |||
Information Technology | 4.0% | |||
Industrials | 3.6% | |||
Consumer Discretionary | 2.1% | |||
Real Estate | 1.7% | |||
Health Care | 0.4% | |||
Other+ | 7.5% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 43 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY GLOBAL EQUITY INCOME FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 99.3% | |||
Financials | 16.7% | |||
Health Care | 15.1% | |||
Consumer Staples | 12.6% | |||
Information Technology | 11.0% | |||
Energy | 10.5% | |||
Industrials | 9.9% | |||
Consumer Discretionary | 9.0% | |||
Utilities | 6.3% | |||
Materials | 4.9% | |||
Telecommunication Services | 3.3% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 0.7% |
Lipper Rankings
Category: Global Equity Income Funds | Rank | Percentile | ||||
1 Year | 42/155 | 27 | ||||
3 Year | 60/136 | 44 | ||||
5 Year | 45/113 | 40 |
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 | 48.2% | |||
United Kingdom | 19.7% | |||
France | 11.8% | |||
Netherlands | 5.1% | |||
Other Europe | 11.6% | |||
North America | 39.3% | |||
United States | 35.8% | |||
Canada | 3.5% | |||
Pacific Basin | 11.8% | |||
Cash and Other Assets (Net of Liabilities), | 0.7% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Microsoft Corp. | United States | Information Technology | Systems Software | |||
Royal Dutch Shell plc, Class A | United Kingdom | Energy | Integrated Oil & Gas | |||
Pfizer, Inc. | United States | Health Care | Pharmaceuticals | |||
Total S.A. | France | Energy | Integrated Oil & Gas | |||
Marine Harvest ASA | Norway | Consumer Staples | Packaged Foods & Meats | |||
Merck & Co., Inc. | United States | Health Care | Pharmaceuticals | |||
ENEL S.p.A. | Italy | Utilities | Electric Utilities | |||
Johnson & Johnson | United States | Health Care | Pharmaceuticals | |||
Unilever N.V., Certicaaten Van Aandelen | Netherlands | Consumer Staples | Personal Products | |||
Philip Morris International, Inc. | United States | Consumer Staples | Tobacco |
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. |
44 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL EQUITY INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Australia | ||||||||
Financials – 1.0% | ||||||||
National Australia Bank Ltd. | 125 | $ | 3,091 | |||||
|
| |||||||
Total Australia – 1.0% |
| 3,091 | ||||||
Canada | ||||||||
Financials – 3.5% | ||||||||
Bank of Montreal | 60 | 4,578 | ||||||
Royal Bank of Canada | 80 | 6,198 | ||||||
|
| |||||||
10,776 | ||||||||
|
| |||||||
Total Canada – 3.5% |
| 10,776 | ||||||
China | ||||||||
Consumer Discretionary – 1.7% |
| |||||||
ANTA Sports Products Ltd. | 1,222 | 5,138 | ||||||
|
| |||||||
Total China – 1.7% |
| 5,138 | ||||||
France | ||||||||
Consumer Discretionary – 1.5% |
| |||||||
LVMH Moet Hennessy-Louis Vuitton | 17 | 4,608 | ||||||
|
| |||||||
Energy – 3.3% | ||||||||
Total S.A. | 189 | 10,146 | ||||||
|
| |||||||
Financials – 1.0% | ||||||||
BNP Paribas S.A. | 38 | 3,081 | ||||||
|
| |||||||
Industrials – 4.5% | ||||||||
Compagnie de Saint-Gobain | 71 | 4,201 | ||||||
Schneider Electric S.A. | 39 | 3,366 | ||||||
Vinci | 64 | 6,079 | ||||||
|
| |||||||
13,646 | ||||||||
|
| |||||||
Telecommunication Services – 1.5% |
| |||||||
Orange S.A. | 267 | 4,377 | ||||||
|
| |||||||
Total France – 11.8% | 35,858 | |||||||
Hong Kong | ||||||||
Financials – 1.4% | ||||||||
BOC Hong Kong (Holdings) Ltd. | 890 | 4,324 | ||||||
|
| |||||||
Total Hong Kong – 1.4% |
| 4,324 | ||||||
India | ||||||||
Financials – 1.4% | ||||||||
Indiabulls Housing Finance Ltd. | 228 | 4,212 | ||||||
|
| |||||||
Total India – 1.4% |
| 4,212 | ||||||
Ireland | ||||||||
Materials – 1.1% | ||||||||
CRH plc | 86 | 3,299 | ||||||
|
| |||||||
Total Ireland – 1.1% |
| 3,299 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Italy | ||||||||
Utilities – 2.8% | ||||||||
ENEL S.p.A. | 1,451 | $ | 8,738 | |||||
|
| |||||||
Total Italy – 2.8% |
| 8,738 | ||||||
Japan | ||||||||
Consumer Discretionary – 1.6% | ||||||||
Bridgestone Corp. | 106 | 4,804 | ||||||
|
| |||||||
Telecommunication Services – 1.8% |
| |||||||
Nippon Telegraph and Telephone Corp. | 122 | 5,586 | ||||||
|
| |||||||
Total Japan – 3.4% |
| 10,390 | ||||||
Netherlands | ||||||||
Consumer Staples – 2.4% | ||||||||
Unilever N.V., Certicaaten Van Aandelen | 126 | 7,474 | ||||||
|
| |||||||
Financials – 1.7% | ||||||||
ING Groep N.V., Certicaaten Van Aandelen | 270 | 4,986 | ||||||
|
| |||||||
Industrials – 1.0% | ||||||||
Koninklijke Philips Electronics N.V., Ordinary Shares | 75 | 3,111 | ||||||
|
| |||||||
Total Netherlands – 5.1% |
| 15,571 | ||||||
Norway | ||||||||
Consumer Staples – 3.1% | ||||||||
Marine Harvest ASA | 481 | 9,519 | ||||||
|
| |||||||
Total Norway – 3.1% |
| 9,519 | ||||||
Russia | ||||||||
Energy – 1.6% | ||||||||
PJSC LUKOIL ADR | 90 | 4,770 | ||||||
|
| |||||||
Total Russia – 1.6% |
| 4,770 | ||||||
Singapore | ||||||||
Financials – 1.5% | ||||||||
DBS Group Holdings Ltd. | 304 | 4,671 | ||||||
|
| |||||||
Total Singapore – 1.5% |
| 4,671 | ||||||
South Korea | ||||||||
Information Technology – 1.4% | ||||||||
Samsung Electronics Co. Ltd. | 2 | 4,477 | ||||||
|
| |||||||
Total South Korea – 1.4% |
| 4,477 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Spain | ||||||||
Utilities – 1.5% | ||||||||
Iberdrola S.A. | 578 | $ | 4,493 | |||||
|
| |||||||
Total Spain – 1.5% |
| 4,493 | ||||||
Switzerland | ||||||||
Consumer Staples – 1.5% | ||||||||
Nestle S.A., Registered Shares | 55 | 4,589 | ||||||
|
| |||||||
Total Switzerland – 1.5% |
| 4,589 | ||||||
United Kingdom | ||||||||
Consumer Discretionary – 2.7% | ||||||||
Bellway plc | 75 | 3,327 | ||||||
GKN plc | 1,074 | 4,979 | ||||||
|
| |||||||
8,306 | ||||||||
|
| |||||||
Consumer Staples – 3.3% | ||||||||
British American Tobacco plc | 85 | 5,328 | ||||||
Diageo plc | 138 | 4,546 | ||||||
|
| |||||||
9,874 | ||||||||
|
| |||||||
Energy – 3.9% | ||||||||
Royal Dutch Shell plc, Class A | 400 | 12,045 | ||||||
|
| |||||||
Financials – 2.6% | ||||||||
HSBC Holdings plc | 466 | 4,605 | ||||||
Prudential plc | 143 | 3,429 | ||||||
|
| |||||||
8,034 | ||||||||
|
| |||||||
Health Care – 3.0% | ||||||||
AstraZeneca plc | 70 | 4,628 | ||||||
GlaxoSmithKline plc | 230 | 4,578 | ||||||
|
| |||||||
9,206 | ||||||||
|
| |||||||
Materials – 2.2% | ||||||||
Mondi plc | 114 | 3,065 | ||||||
Rio Tinto plc | 81 | 3,774 | ||||||
|
| |||||||
6,839 | ||||||||
|
| |||||||
Utilities – 2.0% | ||||||||
National Grid plc | 480 | 5,952 | ||||||
|
| |||||||
Total United Kingdom – 19.7% |
| 60,256 | ||||||
United States | ||||||||
Consumer Discretionary – 1.5% | ||||||||
Home Depot, Inc. (The) | 29 | 4,694 | ||||||
|
| |||||||
Consumer Staples – 2.3% | ||||||||
Philip Morris International, Inc. | 64 | 7,060 | ||||||
|
| |||||||
Energy – 1.7% | ||||||||
Chevron Corp. | 43 | 5,065 | ||||||
|
|
2017 | SEMIANNUAL REPORT | 45 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL EQUITY INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS (Continued) | Shares | Value | ||||||
Financials – 2.6% | ||||||||
Bank of America Corp. | 184 | $ | 4,663 | |||||
Wells Fargo & Co. | 60 | 3,309 | ||||||
|
| |||||||
7,972 | ||||||||
|
| |||||||
Health Care – 12.1% | ||||||||
AbbVie, Inc. | 53 | 4,701 | ||||||
Eli Lilly and Co. | 55 | 4,689 | ||||||
Johnson & Johnson | 58 | 7,492 | ||||||
Merck & Co., Inc. (A) | 141 | 9,034 | ||||||
Pfizer, Inc. | 305 | 10,902 | ||||||
|
| |||||||
36,818 | ||||||||
|
| |||||||
Industrials – 4.4% | ||||||||
Eaton Corp. | 55 | 4,239 | ||||||
Lockheed Martin Corp. | 16 | 4,937 | ||||||
United Technologies Corp. | 37 | 4,283 | ||||||
|
| |||||||
13,459 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Information Technology – 9.6% | ||||||||
Analog Devices, Inc. | 36 | $ | 3,076 | |||||
Broadcom Corp., Class A | 15 | 3,735 | ||||||
Cypress Semiconductor Corp. | 219 | 3,291 | ||||||
Intel Corp. | 176 | 6,687 | ||||||
Microsoft Corp. | 168 | 12,509 | ||||||
|
| |||||||
29,298 | ||||||||
|
| |||||||
Materials – 1.6% | ||||||||
Eastman Chemical Co. | 55 | 4,959 | ||||||
|
| |||||||
Total United States – 35.8% |
| 109,325 | ||||||
TOTAL COMMON STOCKS – 99.3% |
| $ | 303,497 | |||||
(Cost: $252,203) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Master Note – 0.4% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) | ||||||||
1.450%, 10-4-17(B) | $ | 1,172 | $ | 1,172 | ||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 0.4% |
| $ | 1,172 | |||||
(Cost: $1,172) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.7% |
| $ | 304,669 | |||||
(Cost: $253,375) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3% |
| 1,010 | ||||||
NET ASSETS – 100.0% |
| $ | 305,679 |
Notes to Schedule of Investments
(A) | All or a portion of securities with an aggregate value of $1,591 are held in collateralized accounts for OTC foreign forward currency contracts collateral. |
(B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following forward foreign currency contracts were outstanding at September 30, 2017:
Currency to be Delivered | Currency to be Received | Settlement Date | Counterparty | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||||||||||
British Pound | 11,319 | U.S. Dollar | 14,623 | 10-5-17 | Citibank N.A. | $ | — | $ | 546 | |||||||||||||||||||||
Japanese Yen | 759,023 | U.S. Dollar | 6,995 | 10-5-17 | Citibank N.A. | 249 | — | |||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
$ | 249 | $ | 546 | |||||||||||||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 303,497 | $ | — | $ | — | ||||||
Short-Term Securities | — | 1,172 | — | |||||||||
Total | $ | 303,497 | $ | 1,172 | $ | — | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 249 | $ | — | ||||||
Liabilities | ||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 546 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
LIBOR = London Interbank Offered Rate
OTC = Over the Counter
46 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL EQUITY INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Market Sector Diversification
(as a % of net assets) |
| |||
Financials | 16.7% | |||
Health Care | 15.1% | |||
Consumer Staples | 12.6% | |||
Information Technology | 11.0% | |||
Energy | 10.5% | |||
Industrials | 9.9% | |||
Consumer Discretionary | 9.0% | |||
Utilities | 6.3% | |||
Materials | 4.9% | |||
Telecommunication Services | 3.3% | |||
Other+ | 0.7% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 47 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY GLOBAL GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 98.0% | |||
Information Technology | 26.2% | |||
Consumer Discretionary | 19.7% | |||
Industrials | 15.4% | |||
Health Care | 13.5% | |||
Financials | 11.6% | |||
Energy | 6.2% | |||
Consumer Staples | 5.4% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 2.0% |
Lipper Rankings
Category: Global Large-Cap Growth Funds | Rank | Percentile | ||||
1 Year | 90/135 | 67 | ||||
3 Year | 97/113 | 86 | ||||
5 Year | 82/94 | 87 | ||||
10 Year | 52/59 | 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 | 52.4% | |||
United States | 50.7% | |||
Other North America | 1.7% | |||
Europe | 27.1% | |||
France | 8.1% | |||
Germany | 7.0% | |||
United Kingdom | 4.8% | |||
Netherlands | 3.8% | |||
Other Europe | 3.4% | |||
Pacific Basin | 18.5% | |||
Japan | 7.8% | |||
China | 7.8% | |||
Other Pacific Basin | 2.9% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 2.0% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
MasterCard, Inc., Class A | United States | Information Technology | Data Processing & Outsourced Services | |||
Airbus SE | France | Industrials | Aerospace & Defense | |||
Microsoft Corp. | United States | Information Technology | Systems Software | |||
Koninklijke Philips Electronics N.V., Ordinary Shares | Netherlands | Industrials | Industrial Conglomerates | |||
Alibaba Group Holding Ltd. ADR | China | Information Technology | Internet Software & Services | |||
Visa, Inc., Class A | United States | Information Technology | Data Processing & Outsourced Services | |||
Facebook, Inc., Class A | United States | Information Technology | Internet Software & Services | |||
Amazon.com, Inc. | United States | Consumer Discretionary | Internet & Direct Marketing Retail | |||
Home Depot, Inc. (The) | United States | Consumer Discretionary | Home Improvement Retail | |||
Celgene Corp. | United States | Health Care | Biotechnology |
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. |
48 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Canada |
| |||||||
Energy – 0.8% |
| |||||||
Seven Generations Energy Ltd., Class A (A) | 221 | $ | 3,488 | |||||
|
| |||||||
Total Canada – 0.8% |
| 3,488 | ||||||
China |
| |||||||
Financials – 2.3% |
| |||||||
Ping An Insurance (Group) Co. of China Ltd., H Shares | 1,316 | 10,096 | ||||||
|
| |||||||
Information Technology – 5.5% |
| |||||||
Alibaba Group Holding Ltd. ADR (A) | 88 | 15,152 | ||||||
Tencent Holdings Ltd. | 206 | 8,866 | ||||||
|
| |||||||
24,018 | ||||||||
|
| |||||||
Total China – 7.8% |
| 34,114 | ||||||
France |
| |||||||
Consumer Staples – 1.2% |
| |||||||
Pernod Ricard S.A. | 38 | 5,282 | ||||||
|
| |||||||
Energy – 1.5% |
| |||||||
Total S.A. ADR | 126 | 6,770 | ||||||
|
| |||||||
Financials – 1.3% |
| |||||||
Axa S.A. | 184 | 5,571 | ||||||
|
| |||||||
Industrials – 4.1% |
| |||||||
Airbus SE | 189 | 17,985 | ||||||
|
| |||||||
Total France – 8.1% |
| 35,608 | ||||||
Germany |
| |||||||
Consumer Discretionary – 2.9% |
| |||||||
Bayerische Motoren Werke AG | 70 | 7,098 | ||||||
ProSiebenSat. 1 Media SE | 167 | 5,701 | ||||||
|
| |||||||
12,799 | ||||||||
|
| |||||||
Health Care – 1.7% |
| |||||||
Fresenius SE & Co. KGaA | 92 | 7,435 | ||||||
|
| |||||||
Industrials – 2.4% |
| |||||||
Siemens AG | 74 | 10,417 | ||||||
|
| |||||||
Total Germany – 7.0% |
| 30,651 | ||||||
India |
| |||||||
Financials – 1.6% |
| |||||||
HDFC Bank Ltd. | 136 | 3,749 | ||||||
Housing Development Finance Corp. Ltd. | 123 | 3,285 | ||||||
|
| |||||||
7,034 | ||||||||
|
| |||||||
Total India – 1.6% |
| 7,034 | ||||||
Japan |
| |||||||
Consumer Discretionary – 5.0% |
| |||||||
Fuji Heavy Industries Ltd. | 200 | 7,227 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Japan (Continued) |
| |||||||
Isuzu Motors Ltd. | 571 | $ | 7,571 | |||||
Start Today Co. Ltd. | 226 | 7,154 | ||||||
|
| |||||||
21,952 | ||||||||
|
| |||||||
Industrials – 2.8% |
| |||||||
Dakin Industries Ltd. | 63 | 6,339 | ||||||
Recruit Holdings Co. Ltd. | 281 | 6,094 | ||||||
|
| |||||||
12,433 | ||||||||
|
| |||||||
Total Japan – 7.8% |
| 34,385 | ||||||
Macau |
| |||||||
Consumer Discretionary – 1.3% |
| |||||||
Galaxy Entertainment Group | 813 | 5,724 | ||||||
|
| |||||||
Total Macau – 1.3% |
| 5,724 | ||||||
Mexico |
| |||||||
Consumer Staples – 0.9% |
| |||||||
Wal–Mart de Mexico S.A.B. de C.V. | 1,711 | 3,917 | ||||||
|
| |||||||
Total Mexico – 0.9% |
| 3,917 | ||||||
Netherlands |
| |||||||
Industrials – 3.5% |
| |||||||
Koninklijke Philips Electronics N.V., Ordinary Shares | 374 | 15,447 | ||||||
|
| |||||||
Information Technology – 0.3% |
| |||||||
ASML Holding N.V., NY Registry Shares | 7 | 1,258 | ||||||
|
| |||||||
Total Netherlands – 3.8% |
| 16,705 | ||||||
Spain |
| |||||||
Consumer Discretionary – 0.8% |
| |||||||
Mediaset Espana Comunicacion S.A. | 333 | 3,759 | ||||||
|
| |||||||
Total Spain – 0.8% |
| 3,759 | ||||||
Switzerland |
| |||||||
Industrials – 2.6% |
| |||||||
Adecco S.A. | 148 | 11,521 | ||||||
|
| |||||||
Total Switzerland – 2.6% |
| 11,521 | ||||||
United Kingdom |
| |||||||
Consumer Discretionary – 1.0% |
| |||||||
Compass Group plc | 207 | 4,381 | ||||||
|
| |||||||
Consumer Staples – 1.2% |
| |||||||
British American Tobacco plc | 83 | 5,222 | ||||||
|
| |||||||
Financials – 2.6% |
| |||||||
Prudential plc | 480 | 11,484 | ||||||
|
| |||||||
Total United Kingdom – 4.8% |
| 21,087 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United States |
| |||||||
Consumer Discretionary – 8.7% |
| |||||||
Amazon.com, Inc. (A) | 13 | $ | 12,831 | |||||
Home Depot, Inc. (The) | 78 | 12,789 | ||||||
Lowe’s Co., Inc. | 58 | 4,624 | ||||||
Marriott International, Inc., Class A | 72 | 7,949 | ||||||
|
| |||||||
38,193 | ||||||||
|
| |||||||
Consumer Staples – 2.1% |
| |||||||
Kraft Foods Group, Inc. | 68 | 5,261 | ||||||
Philip Morris International, Inc. | 38 | 4,269 | ||||||
|
| |||||||
9,530 | ||||||||
|
| |||||||
Energy – 3.9% |
| |||||||
EOG Resources, Inc. | 58 | 5,643 | ||||||
Halliburton Co. | 127 | 5,862 | ||||||
Schlumberger Ltd. | 80 | 5,604 | ||||||
|
| |||||||
17,109 | ||||||||
|
| |||||||
Financials – 3.8% |
| |||||||
CME Group, Inc. | 44 | 5,963 | ||||||
Goldman Sachs Group, Inc. (The) | 22 | 5,310 | ||||||
MetLife, Inc. (A) | 103 | 5,411 | ||||||
|
| |||||||
16,684 | ||||||||
|
| |||||||
Health Care – 11.8% |
| |||||||
Alexion Pharmaceuticals, Inc. (A) | 64 | 8,971 | ||||||
Allergan plc | 28 | 5,646 | ||||||
Celgene Corp. (A) | 81 | 11,743 | ||||||
HCA Holdings, Inc. (A) | 109 | 8,694 | ||||||
Incyte Corp. (A) | 23 | 2,732 | ||||||
Jazz Pharmaceuticals plc (A) | 44 | 6,486 | ||||||
Thermo Fisher Scientific, Inc. | 42 | 7,859 | ||||||
|
| |||||||
52,131 | ||||||||
|
| |||||||
Information Technology – 20.4% |
| |||||||
Adobe Systems, Inc. (A) | 73 | 10,935 | ||||||
Alphabet, Inc., Class C (A) | 5 | 4,607 | ||||||
Arista Networks, Inc. (A) | 15 | 2,857 | ||||||
Broadcom Corp., Class A | 36 | 8,836 | ||||||
Facebook, Inc., Class A (A) | 78 | 13,372 | ||||||
MasterCard, Inc., Class A | 139 | 19,586 | ||||||
Microsoft Corp. | 209 | 15,551 | ||||||
Visa, Inc., Class A | 133 | 14,031 | ||||||
|
| |||||||
89,775 | ||||||||
|
| |||||||
Total United States – 50.7% |
| 223,422 | ||||||
TOTAL COMMON STOCKS – 98.0% |
| $ | 431,415 | |||||
(Cost: $344,284) |
|
2017 | SEMIANNUAL REPORT | 49 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
SHORT–TERM SECURITIES | Principal | Value | ||||||
Commercial Paper (B) – 2.3% |
| |||||||
J.M. Smucker Co. (The) | ||||||||
1.371%, 10–6–17 | $ | 5,000 | $ | 4,999 | ||||
Walgreens Boots Alliance, Inc. | ||||||||
1.490%, 10–12–17 | 5,000 | 4,997 | ||||||
|
| |||||||
9,996 | ||||||||
|
| |||||||
Master Note – 1.4% |
| |||||||
Toyota Motor Credit Corp. (1–Month U.S. LIBOR plus 15 bps) | ||||||||
1.450%, 10–4–17 (C) | 6,138 | 6,138 | ||||||
|
| |||||||
TOTAL SHORT–TERM SECURITIES – 3.7% |
| $ | 16,134 | |||||
(Cost: $16,135) |
Value | ||||||||
TOTAL INVESTMENT SECURITIES – 101.7% |
| $ | 447,549 | |||||
(Cost: $360,419) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.7)% |
| (7,583 | ) | |||||
NET ASSETS – 100.0% |
| 439,966 |
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, 2017. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 431,415 | $ | — | $ | — | ||||||
Short-Term Securities | — | 16,134 | — | |||||||||
Total | $ | 431,415 | $ | 16,134 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
LIBOR = London Interbank Offered Rate
Market Sector Diversification | ||||
(as a % of net assets) |
| |||
Information Technology | 26.2% | |||
Consumer Discretionary | 19.7% | |||
Industrials | 15.4% | |||
Health Care | 13.5% | |||
Financials | 11.6% | |||
Energy | 6.2% | |||
Consumer Staples | 5.4% | |||
Other+ | 2.0% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
50 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY GLOBAL INCOME ALLOCATION FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 61.9% | |||
Financials | 15.6% | |||
Energy | 9.6% | |||
Industrials | 9.3% | |||
Information Technology | 5.6% | |||
Health Care | 5.3% | |||
Consumer Staples | 5.3% | |||
Consumer Discretionary | 4.9% | |||
Utilities | 2.5% | |||
Materials | 1.6% | |||
Telecommunication Services | 1.4% | |||
Real Estate | 0.8% | |||
Bonds | 36.1% | |||
Corporate Debt Securities | 29.4% | |||
Other Government Securities | 3.9% | |||
Loans | 1.7% | |||
United States Government and Government Agency Obligations | 1.1% | |||
Cash and Other Assets (Net of Liabilities),and Cash Equivalents+ | 2.0% |
Lipper Rankings
Category: Flexible Portfolio Funds | Rank | Percentile | ||||
1 Year | 285/634 | 45 | ||||
3 Year | 278/465 | 60 | ||||
5 Year | 213/362 | 59 | ||||
10 Year | 131/162 | 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 | 44.8% | |||
United States | 38.4% | |||
Canada | 5.0% | |||
Other North America | 1.4% | |||
Europe | 41.2% | |||
United Kingdom | 9.9% | |||
France | 5.9% | |||
Spain | 5.5% | |||
Luxembourg | 4.5% | |||
Netherlands | 3.6% | |||
Germany | 3.6% | |||
Other Europe | 8.2% | |||
Pacific Basin | 8.1% | |||
Australia | 3.9% | |||
Other Pacific Basin | 4.2% | |||
South America | 2.6% | |||
Bahamas/Caribbean | 0.8% | |||
Other | 0.5% | |||
Cash and Other Assets (Net of Liabilities),and Cash Equivalents+ | 2.0% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Lockheed Martin Corp. | United States | Industrials | Aerospace & Defense | |||
Ares Capital Corp. | United States | Financials | Asset Management & Custody Banks | |||
Philip Morris International, Inc. | United States | Consumer Staples | Tobacco | |||
Vermilion Energy, Inc. | Canada | Energy | Oil & Gas Exploration & Production | |||
Sampo plc, A Shares | Finland | Financials | Multi-Line Insurance | |||
Fortress Transportation and Infrastructure Investors LLC | United States | Industrials | Trading Companies & Distributors | |||
Orora Ltd. | Australia | Materials | Paper Packaging | |||
Arthur J. Gallagher & Co. | United States | Financials | Insurance Brokers | |||
Ferrovial S.A. | Spain | Industrials | Construction & Engineering | |||
St. James’s Place 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. |
2017 | SEMIANNUAL REPORT | 51 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Australia |
| |||||||
Energy – 1.3% |
| |||||||
Caltex Australia Ltd. | 350 | $ | 8,813 | |||||
|
| |||||||
Financials – 1.0% |
| |||||||
Challenger Ltd. (A) | 725 | 7,080 | ||||||
|
| |||||||
Materials – 1.6% |
| |||||||
Orora Ltd. | 4,450 | 10,821 | ||||||
|
| |||||||
Total Australia – 3.9% |
| 26,714 | ||||||
Canada |
| |||||||
Energy – 4.3% |
| |||||||
Enbridge, Inc. | 200 | 8,368 | ||||||
Pembina Pipeline Corp. | 267 | 9,371 | ||||||
Vermilion Energy, Inc. | 341 | 12,115 | ||||||
|
| |||||||
29,854 | ||||||||
|
| |||||||
Total Canada – 4.3% |
| 29,854 | ||||||
Finland |
| |||||||
Financials – 1.7% |
| |||||||
Sampo plc, A Shares | 225 | 11,892 | ||||||
|
| |||||||
Total Finland – 1.7% |
| 11,892 | ||||||
France |
| |||||||
Financials – 1.1% |
| |||||||
Axa S.A. | 248 | 7,503 | ||||||
|
| |||||||
Industrials – 1.1% |
| |||||||
Compagnie de Saint-Gobain | 133 | 7,908 | ||||||
|
| |||||||
Telecommunication Services – 0.9% |
| |||||||
Orange S.A. | 387 | 6,340 | ||||||
|
| |||||||
Total France – 3.1% |
| 21,751 | ||||||
Germany |
| |||||||
Consumer Discretionary – 1.2% |
| |||||||
Schaeffler AG | 517 | 8,348 | ||||||
|
| |||||||
Financials – 1.2% |
| |||||||
Deutsche Boerse AG | 75 | 8,129 | ||||||
|
| |||||||
Industrials – 1.2% |
| |||||||
Deutsche Post AG | 195 | 8,681 | ||||||
|
| |||||||
Total Germany – 3.6% |
| 25,158 | ||||||
India |
| |||||||
Financials – 1.4% |
| |||||||
Indiabulls Housing Finance Ltd. | 520 | 9,607 | ||||||
|
| |||||||
Total India – 1.4% |
| 9,607 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Ireland |
| |||||||
Health Care – 1.1% |
| |||||||
Medtronic plc | 100 | $ | 7,777 | |||||
|
| |||||||
Total Ireland – 1.1% |
| 7,777 | ||||||
Italy |
| |||||||
Financials – 1.1% |
| |||||||
Banca Intesa S.p.A. | 2,100 | 7,426 | ||||||
|
| |||||||
Total Italy – 1.1% |
| 7,426 | ||||||
Japan |
| |||||||
Consumer Discretionary – 1.1% |
| |||||||
Fuji Heavy Industries Ltd. | 215 | 7,757 | ||||||
|
| |||||||
Total Japan – 1.1% |
| 7,757 | ||||||
New Zealand |
| |||||||
Consumer Discretionary – 0.7% |
| |||||||
SKYCITY Entertainment Group Ltd. | 1,824 | 4,940 | ||||||
|
| |||||||
Total New Zealand – 0.7% |
| 4,940 | ||||||
Norway |
| |||||||
Energy – 1.3% |
| |||||||
Aker BP ASA | 466 | 9,001 | ||||||
|
| |||||||
Total Norway – 1.3% |
| 9,001 | ||||||
Singapore |
| |||||||
Consumer Discretionary – 0.5% |
| |||||||
Asian Pay Television Trust | 8,481 | 3,564 | ||||||
|
| |||||||
Total Singapore – 0.5% |
| 3,564 | ||||||
Spain |
| |||||||
Industrials – 2.4% |
| |||||||
ACS Actividades de Construccion y Servicios S.A. | 153 | 5,675 | ||||||
Ferrovial S.A. | 486 | 10,709 | ||||||
|
| |||||||
16,384 | ||||||||
|
| |||||||
Utilities – 1.3% |
| |||||||
Atlantica Yield plc | 462 | 9,100 | ||||||
|
| |||||||
Total Spain – 3.7% |
| 25,484 | ||||||
Switzerland |
| |||||||
Consumer Staples – 1.2% |
| |||||||
Nestle S.A., Registered Shares | 100 | 8,375 | ||||||
|
| |||||||
Industrials – 1.1% |
| |||||||
Adecco S.A. | 95 | 7,397 | ||||||
|
| |||||||
Total Switzerland – 2.3% |
| 15,772 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United Kingdom |
| |||||||
Consumer Staples – 1.2% |
| |||||||
Imperial Tobacco Group plc | 200 | $ | 8,533 | |||||
|
| |||||||
Energy – 1.4% |
| |||||||
Royal Dutch Shell plc, Class A | 315 | 9,527 | ||||||
|
| |||||||
Financials – 2.5% |
| |||||||
Legal & General Group plc | 2,091 | 7,282 | ||||||
St. James’s Place plc | 655 | 10,059 | ||||||
|
| |||||||
17,341 | ||||||||
|
| |||||||
Total United Kingdom – 5.1% |
| 35,401 | ||||||
United States |
| |||||||
Consumer Discretionary – 1.4% |
| |||||||
Home Depot, Inc. (The) | 60 | 9,814 | ||||||
|
| |||||||
Consumer Staples – 2.9% |
| |||||||
Kraft Foods Group, Inc. (B) | 95 | 7,367 | ||||||
Philip Morris International, Inc. | 110 | 12,185 | ||||||
|
| |||||||
19,552 | ||||||||
|
| |||||||
Energy – 1.3% |
| |||||||
Valero Energy Corp. | 120 | 9,231 | ||||||
|
| |||||||
Financials – 3.8% |
| |||||||
American Capital Agency Corp. | 375 | 8,130 | ||||||
Arthur J. Gallagher & Co. | 175 | 10,771 | ||||||
Blackstone Mortgage Trust, Inc., Class A | 245 | 7,591 | ||||||
|
| |||||||
26,492 | ||||||||
|
| |||||||
Health Care – 3.3% |
| |||||||
Eli Lilly and Co. | 87 | 7,442 | ||||||
Johnson & Johnson | 55 | 7,151 | ||||||
Pfizer, Inc. | 225 | 8,032 | ||||||
|
| |||||||
22,625 | ||||||||
|
| |||||||
Industrials – 3.5% |
| |||||||
Fortress Transportation and Infrastructure Investors LLC | 621 | 11,207 | ||||||
Lockheed Martin Corp. | 43 | 13,342 | ||||||
|
| |||||||
24,549 | ||||||||
|
| |||||||
Information Technology – 5.6% |
| |||||||
Broadcom Corp., Class A | 40 | 9,702 | ||||||
Intel Corp. | 250 | 9,520 | ||||||
Paychex, Inc. | 164 | 9,851 | ||||||
Texas Instruments, Inc. | 105 | 9,412 | ||||||
|
| |||||||
38,485 | ||||||||
|
| |||||||
Real Estate – 0.8% |
| |||||||
Uniti Group, Inc. | 390 | 5,717 | ||||||
|
| |||||||
Utilities – 1.2% |
| |||||||
Dominion Energy, Inc. | 110 | 8,463 | ||||||
|
| |||||||
Total United States – 23.8% |
| 164,928 | ||||||
TOTAL COMMON STOCKS – 58.7% |
| $ | 407,026 | |||||
(Cost: $370,267) |
|
52 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
INVESTMENT FUNDS | Shares | Value | ||||||
United States – 1.8% |
| |||||||
Ares Capital Corp. | 781 | $ | 12,795 | |||||
|
| |||||||
TOTAL INVESTMENT FUNDS – 1.8% |
| 12,795 | ||||||
(Cost: $13,407) |
| |||||||
PREFERRED STOCKS | ||||||||
United States |
| |||||||
Health Care – 0.9% |
| |||||||
Allergan plc, Convertible | 9 | 6,640 | ||||||
|
| |||||||
Telecommunication Services – 0.5% |
| |||||||
Frontier Communications Corp., Convertible | 154 | 2,956 | ||||||
|
| |||||||
Total United States – 1.4% |
| 9,596 | ||||||
TOTAL PREFERRED STOCKS – 1.4% |
| $ | 9,596 | |||||
(Cost: $20,312) |
| |||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Brazil |
| |||||||
Consumer Staples – 0.3% |
| |||||||
Cosan Ltd. | ||||||||
5.950%, 9–20–24 (C) | $ | 2,000 | 2,048 | |||||
|
| |||||||
Total Brazil – 0.3% |
| 2,048 | ||||||
Cayman Islands |
| |||||||
Financials – 0.8% |
| |||||||
Banco Mercantil del Norte S.A.: | ||||||||
7.625%, 10–6–65 (C) | 2,000 | 2,182 | ||||||
6.875%, 10–6–65 (C) | 3,000 | 3,191 | ||||||
|
| |||||||
5,373 | ||||||||
|
| |||||||
Total Cayman Islands – 0.8% |
| 5,373 | ||||||
Columbia |
| |||||||
Utilities – 0.2% |
| |||||||
Empresas Publicas de Medellin E.S.P. | ||||||||
8.375%, 2–1–21 (D) | COP3,888,000 | 1,369 | ||||||
|
| |||||||
Total Columbia – 0.2% |
| 1,369 | ||||||
France |
| |||||||
Financials – 2.8% |
| |||||||
BNP Paribas S.A. | ||||||||
7.625%, 12–29–49 (C) | $ | 5,000 | 5,494 | |||||
Societe Generale Group | ||||||||
7.375%, 12–29–49 (C) | 6,000 | 6,495 | ||||||
Societe Generale S.A. | ||||||||
8.250%, 11–29–49 | 7,000 | 7,402 | ||||||
|
| |||||||
19,391 | ||||||||
|
| |||||||
Total France – 2.8% |
| 19,391 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Ireland |
| |||||||
Industrials – 0.1% |
| |||||||
Russian Railways via RZD Capital Ltd. | ||||||||
8.300%, 4–2–19 (D) | | RUB 50,000 | | $ | 869 | |||
|
| |||||||
Total Ireland – 0.1% |
| 869 | ||||||
Italy |
| |||||||
Financials – 0.6% |
| |||||||
UniCredit S.p.A. | ||||||||
5.861%, 6–19–32 (C) | $ | 4,000 | 4,192 | |||||
|
| |||||||
Total Italy – 0.6% |
| 4,192 | ||||||
Luxembourg |
| |||||||
Consumer Discretionary – 1.9% |
| |||||||
Altice Financing S.A. | ||||||||
7.500%, 5–15–26 (C) | 2,612 | 2,873 | ||||||
Altice S.A. | ||||||||
7.625%, 2–15–25 (C) | 9,188 | 9,912 | ||||||
|
| |||||||
12,785 | ||||||||
|
| |||||||
Consumer Staples – 0.4% |
| |||||||
Minerva Luxembourg S.A. | ||||||||
6.500%, 9–20–26 (C) | 3,000 | 3,031 | ||||||
|
| |||||||
Industrials – 0.9% |
| |||||||
JSL Europe (GTD by JSL S.A.) | ||||||||
7.750%, 7–26–24 (C) | 6,000 | 6,315 | ||||||
|
| |||||||
Materials – 0.8% |
| |||||||
VM Holding S.A. | ||||||||
5.375%, 5–4–27 (C) | 5,000 | 5,250 | ||||||
|
| |||||||
Total Luxembourg – 4.0% |
| 27,381 | ||||||
Mauritius |
| |||||||
Industrials – 0.5% |
| |||||||
HTA Group Ltd. | ||||||||
9.125%, 3–8–22 (C) | 3,000 | 3,154 | ||||||
|
| |||||||
Total Mauritius – 0.5% |
| 3,154 | ||||||
Mexico |
| |||||||
Financials – 0.5% |
| |||||||
Unifin Financiera S.A.B. de C.V. SOFOM E.N.R. | ||||||||
7.250%, 9–27–23 (C) | 3,150 | 3,276 | ||||||
|
| |||||||
Telecommunication Services – 0.4% |
| |||||||
America Movil S.A.B. de C.V. | ||||||||
6.450%, 12–5–22 (D) | | MXN 47,000 | | 2,455 | ||||
|
| |||||||
Total Mexico – 0.9% |
| 5,731 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Netherlands |
| |||||||
Consumer Staples – 1.0% |
| |||||||
MARB BondCo plc (GTD by Marfrig Global Foods S.A., Marfrig Overseas Ltd. and Marfrig Holdings (Europe) B.V.) | ||||||||
7.000%, 3–15–24 (C) | $ | 7,000 | $ | 6,895 | ||||
|
| |||||||
Energy – 1.9% |
| |||||||
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.): | ||||||||
8.750%, 5–23–26 | 8,000 | 9,610 | ||||||
5.999%, 1–27–28 (C) | 3,503 | 3,503 | ||||||
|
| |||||||
13,113 | ||||||||
|
| |||||||
Materials – 0.6% |
| |||||||
Constellium N.V. | ||||||||
8.000%, 1–15–23 (C) | 4,253 | 4,497 | ||||||
|
| |||||||
Telecommunication Services – 0.1% |
| |||||||
VimpleCom Holdings B.V. | ||||||||
9.000%, 2–13–18 (C)(D) | | RUB 50,000 | | 866 | ||||
|
| |||||||
Total Netherlands – 3.6% |
| 25,371 | ||||||
Singapore |
| |||||||
Consumer Staples – 0.0% |
| |||||||
Olam International Ltd. | ||||||||
6.000%, 8–10–18 (D) | | SGD 250 | | 190 | ||||
|
| |||||||
Total Singapore – 0.0% |
| 190 | ||||||
Spain |
| |||||||
Financials – 1.1% |
| |||||||
Banco Bilbao Vizcaya Argentaria S.A. | ||||||||
9.000%, 5–29–49 | $ | 7,600 | 7,866 | |||||
|
| |||||||
Industrials – 0.7% |
| |||||||
ACI Airport Sudamerica S.A. | ||||||||
6.875%, 11–29–32 (C) | 4,913 | 5,121 | ||||||
|
| |||||||
Total Spain – 1.8% |
| 12,987 | ||||||
Turkey |
| |||||||
Financials – 0.4% |
| |||||||
Turkiye Garanti Bankasi A.S. | ||||||||
6.125%, 5–24–27 (C) | 3,000 | 3,005 | ||||||
|
| |||||||
Total Turkey – 0.4% |
| 3,005 | ||||||
United Kingdom |
| |||||||
Energy – 0.6% |
| |||||||
KCA Deutag UK Finance plc | ||||||||
9.875%, 4–1–22 (C) | 4,167 | 4,323 | ||||||
|
|
2017 | SEMIANNUAL REPORT | 53 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Financials – 4.2% |
| |||||||
Barclays plc | ||||||||
8.250%, 12–29–49 | $ | 11,085 | $ | 11,709 | ||||
Royal Bank of Scotland Group plc (The): | ||||||||
7.500%, 12–29–49 | 6,000 | 6,283 | ||||||
8.625%, 12–29–49 | 4,983 | 5,525 | ||||||
Standard Chartered plc | ||||||||
7.500%, 12–29–49 (C) | 5,000 | 5,337 | ||||||
|
| |||||||
28,854 | ||||||||
|
| |||||||
Total United Kingdom – 4.8% |
| 33,177 | ||||||
United States | ||||||||
Financials – 5.1% |
| |||||||
Bank of America Corp. | ||||||||
8.000%, 7–29–49 | 6,000 | 6,086 | ||||||
JPMorgan Chase & Co. | ||||||||
7.900%, 4–29–49 | 3,000 | 3,090 | ||||||
New Cotai LLC and New Cotai Capital Corp. (10.625% Cash or 10.625% PIK) | ||||||||
10.625%, 5–1–19 (C)(E) | 15,414 | 15,106 | ||||||
Wells Fargo & Co. | ||||||||
7.980%, 3–29–49 | 10,534 | 10,850 | ||||||
|
| |||||||
35,132 | ||||||||
|
| |||||||
Health Care – 0.5% |
| |||||||
Kinetic Concepts, Inc. and KCI USA, Inc. | ||||||||
12.500%, 11–1–21 (C) | 225 | 250 | ||||||
Universal Hospital Services, Inc. | ||||||||
7.625%, 8–15–20 | 3,172 | 3,212 | ||||||
|
| |||||||
3,462 | ||||||||
|
| |||||||
Industrials – 1.0% |
| |||||||
Prime Security Services Borrower LLC | ||||||||
9.250%, 5–15–23 (C) | 6,111 | 6,744 | ||||||
|
| |||||||
Materials – 0.8% |
| |||||||
BakerCorp International, Inc. | ||||||||
8.250%, 6–1–19 | 6,000 | 5,580 | ||||||
|
| |||||||
Telecommunication Services – 1.2% |
| |||||||
Frontier Communications Corp. | ||||||||
11.000%, 9–15–25 | 10,000 | 8,500 | ||||||
|
| |||||||
Total United States – 8.6% | 59,418 | |||||||
TOTAL CORPORATE DEBT SECURITIES – 29.4% | $ | 203,656 | ||||||
(Cost: $194,514) |
OTHER GOVERNMENT SECURITIES (F) | Principal | Value | ||||||
Argentina – 2.1% |
| |||||||
Aeropuertos Argentina 2000 S.A. | ||||||||
6.875%, 2–1–27 (C) | $ | 1,300 | $ | 1,386 | ||||
Province of Buenos Aires | ||||||||
7.875%, 6–15–27 (C) | 7,000 | 7,587 | ||||||
Province of Mendoza | ||||||||
8.375%, 5–19–24 (C) | 2,000 | 2,206 | ||||||
Republic of Argentina | ||||||||
6.875%, 1–26–27 | 3,000 | 3,240 | ||||||
|
| |||||||
14,419 | ||||||||
|
| |||||||
Canada – 0.7% |
| |||||||
City of Toronto | ||||||||
3.500%, 12–6–21 (D) | CAD | 2,000 | 1,669 | |||||
Province of Ontario | ||||||||
4.400%, 6–2–19 (D) | 2,000 | 1,674 | ||||||
Regional Municipality of York | ||||||||
4.000%, 6–30–21 (D) | 2,000 | 1,705 | ||||||
|
| |||||||
5,048 | ||||||||
|
| |||||||
Luxembourg – 0.5% |
| |||||||
Atento Luxco 1 S.A. | ||||||||
6.125%, 8–10–22 (C) | $ | 3,600 | 3,758 | |||||
|
| |||||||
Malaysia – 0.1% |
| |||||||
Malaysia Government Bond | ||||||||
3.314%, 10–31–17 (D) | MYR | 3,000 | 711 | |||||
|
| |||||||
Mexico – 0.5% |
| |||||||
Petroleos Mexicanos | ||||||||
6.500%, 3–13–27 (C) | $ | 3,000 | 3,331 | |||||
|
| |||||||
TOTAL OTHER GOVERNMENT SECURITIES – 3.9% |
| $ | 27,267 | |||||
(Cost: $27,237) | ||||||||
LOANS (G) | ||||||||
United States |
| |||||||
Consumer Discretionary – 0.3% |
| |||||||
Serta Simmons Bedding LLC (ICE LIBOR plus 800 bps) | ||||||||
9.312%, 11–8–24 | 1,827 | 1,752 | ||||||
|
| |||||||
Consumer Staples – 0.4% |
| |||||||
GOBP Holdings, Inc. (ICE LIBOR plus 825 bps) | ||||||||
9.583%, 10–21–22 | 2,906 | 2,912 | ||||||
|
| |||||||
Industrials – 0.9% |
| |||||||
Hampton Rubber Co. & SEI Holding Corp. (ICE LIBOR plus 800 bps) | ||||||||
9.235%, 3–27–22 | 3,333 | 2,946 | ||||||
Neff Rental LLC (ICE LIBOR plus 625 bps) | ||||||||
7.664%, 6–9–21 | 3,364 | 3,367 | ||||||
|
| |||||||
6,313 | ||||||||
|
|
LOANS (G) (Continued) | Principal | Value | ||||||
Materials – 0.1% |
| |||||||
EP Minerals LLC (ICE LIBOR plus 750 bps) | ||||||||
8.817%, 8–20–21 (H) | $ | 781 | $ | 758 | ||||
|
| |||||||
Total United States – 1.7% |
| 11,735 | ||||||
TOTAL LOANS – 1.7% |
| $ | 11,735 | |||||
(Cost: $12,116) |
| |||||||
UNITED STATES GOVERNMENT OBLIGATIONS | ||||||||
United States – 1.1% |
| |||||||
U.S. Treasury Bonds: | ||||||||
8.000%, 11–15–21 | 4,000 | 4,983 | ||||||
7.250%, 8–15–22 | 2,000 | 2,495 | ||||||
|
| |||||||
7,478 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 1.1% |
| $ | 7,478 | |||||
(Cost: $7,450) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Commercial Paper (I) – 0.9% |
| |||||||
Kroger Co. (The) | ||||||||
1.300%, 10–2–17 | 6,473 | 6,472 | ||||||
|
| |||||||
Master Note – 0.3% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) | ||||||||
1.450%, 10–4–17 (J) | 2,137 | 2,137 | ||||||
|
| |||||||
Municipal Obligations – 0.1% |
| |||||||
NYC Hsng Dev Corp., Multi-Fam Mtg Rev Bonds (Spring Creek Apt I and II), Ser 2006A (GTD by FHLMC) (BVAL plus 14 bps) | ||||||||
0.990%, 10–7–17 (J) | 400 | 400 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 1.3% |
| $ | 9,009 | |||||
(Cost: $9,010) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.3% |
| $ | 688,562 | |||||
(Cost: $654,313) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7% |
| 4,671 | ||||||
NET ASSETS – 100.0% |
| $ | 693,233 |
54 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2017 (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 $427 are held in collateralized accounts for OTC foreign forward currency contracts collateral. |
(C) | Securities were purchased pursuant to an exemption from registration available under Rule 144A under the Securities Act of 1933 and may only be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2017 the total value of these securities amounted to $131,328 or 18.9% of net assets. |
(D) | Principal amounts are denominated in the indicated foreign currency, where applicable (CAD - Canadian Dollar, COP - Columbian Peso, MXN -Mexican Peso, MYR - Malaysian Ringgit, RUB - Russian Ruble and SGD - Singapore Dollar). |
(E) | Payment-in-kind bond which may pay interest in additional par and/or in cash. Rates shown are the current rate and possible payment rates. |
(F) | Other Government Securities may include emerging markets sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities. |
(G) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description. |
(H) | Securities whose value was determined using significant unobservable inputs. |
(I) | Rate shown is the yield to maturity at September 30, 2017. |
(J) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following forward foreign currency contracts were outstanding at September 30, 2017:
Currency to be Delivered | Currency to be Received | Settlement Date | Counterparty | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||||||
British Pound | 9,400 | U.S. Dollar | 12,153 | 10-5-17 | UBS AG | $ | — | $ | 444 | |||||||||||||||||
Euro | 19,000 | U.S. Dollar | 22,492 | 10-5-17 | UBS AG | 33 | — | |||||||||||||||||||
|
| |||||||||||||||||||||||||
$ | 33 | $ | 444 | |||||||||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 407,026 | $ | — | $ | — | ||||||
Investment Funds | 12,795 | — | — | |||||||||
Preferred Stocks | 9,596 | — | — | |||||||||
Corporate Debt Securities | — | 203,656 | — | |||||||||
Other Government Securities | — | 27,267 | — | |||||||||
Loans | — | 10,977 | 758 | |||||||||
United States Government Obligations | — | 7,478 | — | |||||||||
Short-Term Securities | — | 9,009 | — | |||||||||
Total | $ | 429,417 | $ | 258,387 | $ | 758 | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 33 | $ | — | ||||||
Liabilities | ||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 444 | $ | — |
During the period ended September 30, 2017, securities totaling $757 were transferred from Level 2 to Level 3 due to decreased availability of observable market data due to decreased market activity or information for these securities. Transfers in to 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.
2017 | SEMIANNUAL REPORT | 55 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
The following acronyms are used throughout this schedule:
BVAL = Bloomberg Valuation Benchmark Municipal Curve
FHLMC = Federal Home Loan Mortgage Corp.
GTD = Guaranteed
ICE = Intercontinental Exchange
LIBOR = London Interbank Offered Rate
PIK = Payment in Kind
Market Sector Diversification
(as a % of net assets) |
| |||
Financials | 31.1% | |||
Industrials | 13.4% | |||
Energy | 12.1% | |||
Consumer Staples | 7.4% | |||
Consumer Discretionary | 7.1% | |||
Health Care | 5.8% | |||
Information Technology | 5.6% | |||
Materials | 3.9% | |||
Other Government Securities | 3.9% | |||
Telecommunication Services | 3.1% | |||
Utilities | 2.7% | |||
United States Government and Government Agency Obligations | 1.1% | |||
Real Estate | 0.8% | |||
Other+ | 2.0% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
56 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY GOVERNMENT MONEY MARKET FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Corporate Obligations | 0.6% | |||
Master Note | 0.6% | |||
United States Government and Government Agency Obligations | 97.4% | |||
United States Government and Government Agency Backed Municipal Obligations | 1.6% | |||
Cash and Other Assets (Net of Liabilities) | 0.4% |
Lipper Rankings
Category: U.S. Government Money Market Funds | Rank | Percentile | ||||
1 Year | 100/166 | 60 | ||||
3 Year | 72/131 | 55 | ||||
5 Year | 62/129 | 48 | ||||
10 Year | 18/112 | 16 |
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.
2017 | SEMIANNUAL REPORT | 57 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY GOVERNMENT MONEY MARKET FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE OBLIGATIONS | Principal | Value | ||||||
Master Note |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (A) | $ | 923 | $ | 923 | ||||
|
| |||||||
Total Master Note – 0.6% |
| 923 | ||||||
TOTAL CORPORATE OBLIGATIONS – 0.6% |
| $ | 923 | |||||
(Cost: $923) | ||||||||
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS | ||||||||
Treasury Bills – 11.8% |
| |||||||
U.S. Treasury Bills: | ||||||||
1.048%, 10–5–17 | 5,000 | 4,999 | ||||||
0.920%, 10–26–17 | 4,000 | 3,997 | ||||||
0.990%, 11–9–17 | 5,900 | 5,894 | ||||||
1.120%, 1–4–18 | 5,000 | 4,985 | ||||||
|
| |||||||
19,875 | ||||||||
|
| |||||||
Treasury Notes – 5.7% |
| |||||||
U.S. Treasury Notes (3-Month USTMMR plus 17 bps), | ||||||||
1.220%, 10–2–17 (A) | 2,000 | 2,000 | ||||||
U.S. Treasury Notes (3-Month USTMMR plus 17.4 bps), | ||||||||
1.230%, 10–2–17 (A) | 6,040 | 6,039 | ||||||
U.S. Treasury Notes (3-Month USTMMR plus 7 bps), | ||||||||
1.120%, 10–1–17 (A) | 1,500 | 1,500 | ||||||
|
| |||||||
9,539 | ||||||||
|
|
UNITED STATES GOVERNMENT (Continued) | Principal | Value | ||||||
United States Government Agency Obligations – 79.9% |
| |||||||
Federal Home Loan Bank, | ||||||||
0.700%, 10–2–17 | $ | 5,116 | $ | 5,116 | ||||
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate): | ||||||||
1.120%, 10–4–17 (A) | 230 | 230 | ||||||
1.120%, 10–7–17 (A) | 81,953 | 81,953 | ||||||
1.130%, 10–7–17 (A) | 34,297 | 34,298 | ||||||
1.150%, 10–7–17 (A) | 12,340 | 12,340 | ||||||
|
| |||||||
133,937 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS – 97.4% |
| $ | 163,351 | |||||
(Cost: $163,351) | ||||||||
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY BACKED MUNICIPAL OBLIGATIONS | ||||||||
California – 0.4% |
| |||||||
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (The Crossings Sr Apts/Phase I), Ser 2005 I (GTD by FNMA) (BVAL plus 10 bps), | ||||||||
0.990%, 10–7–17 (A) | 200 | 200 |
UNITED STATES GOVERNMENT (Continued) | Principal | Value | ||||||
California (Continued) |
| |||||||
San Diego, CA, Hsng Auth, Var Rate Demand Multi-Fam Hsng Rev Rfdg Bonds (Hillside Garden Apt), Ser 2004C (GTD by FNMA) (BVAL plus 13 bps), | ||||||||
0.930%, 10–7–17 (A) | $ | 400 | $ | 400 | ||||
|
| |||||||
600 | ||||||||
|
| |||||||
Florida – 1.2% |
| |||||||
Volusia Cnty, FL, Hsng Fin Auth, Multi-Fam Hsng Rev Rfdg Bonds (Fisherman’s Landing Apt), Ser 2002 (GTD by FNMA) (BVAL plus 20 bps), | ||||||||
1.000%, 10–7–17 (A) | 2,000 | 2,000 | ||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY BACKED MUNICIPAL OBLIGATIONS – 1.6% |
| $ | 2,600 | |||||
(Cost: $2,600) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.6% |
| $ | 166,874 | |||||
(Cost: $166,874) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.4% |
| 611 | ||||||
NET ASSETS – 100.0% |
| $ | 167,485 |
Notes to Schedule of Investments
(A) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | — | $ | 923 | $ | — | ||||||
United States Government and Government Agency Obligations | — | 163,351 | — | |||||||||
United States Government and Government Agency Backed Municipal Obligations | — | 2,600 | — | |||||||||
Total | $ | — | $ | 166,874 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
BVAL = Bloomberg Valuation Benchmark Curve
FNMA = Federal National Mortgage Association
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
TB = Treasury Bill
USTMMR = U.S. Treasury Money Market Rate
See Accompanying Notes to Financial Statements.
58 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY HIGH INCOME FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 2.8% | |||
Consumer Discretionary | 1.5% | |||
Consumer Staples | 0.5% | |||
Financials | 0.4% | |||
Energy | 0.3% | |||
Telecommunication Services | 0.1% | |||
Warrants | 0.0% | |||
Bonds | 90.9% | |||
Corporate Debt Securities | 69.6% | |||
Loans | 21.3% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 6.3% |
Lipper Rankings
Category: High Yield Funds | Rank | Percentile | ||||
1 Year | 26/669 | 4 | ||||
3 Year | 302/570 | 53 | ||||
5 Year | 84/460 | 19 | ||||
10 Year | 11/302 | 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 | 1.0% | |||
BBB | 1.0% | |||
Non-Investment Grade | 89.9% | |||
BB | 12.0% | |||
B | 46.7% | |||
CCC | 25.7% | |||
Below CCC | 0.6% | |||
Non-rated | 4.9% | |||
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities | 9.1% |
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. For securities not rated by Moody’s, ratings are obtained from Fitch. 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. |
2017 | SEMIANNUAL REPORT | 59 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Cable & Satellite – 0.2% |
| |||||||
Altice N.V., Class A (A)(B) | 454 | $ | 9,096 | |||||
|
| |||||||
Casinos & Gaming – 0.0% |
| |||||||
New Cotai Participation Corp., Class B (A)(C)(D) | — | * | 354 | |||||
|
| |||||||
Education Services – 1.3% |
| |||||||
Laureate Education, Inc., Class A (A) | 3,921 | 57,044 | ||||||
|
| |||||||
Total Consumer Discretionary – 1.5% |
| 66,494 | ||||||
Energy |
| |||||||
Coal & Consumable Fuels – 0.0% |
| |||||||
Foresight Energy L.P. | 357 | 1,502 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 0.1% |
| |||||||
Larchmont Resources LLC (A)(C)(E) | 15 | 4,905 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 0.2% |
| |||||||
Midstates Petroleum Co., Inc. (A) | 580 | 9,006 | ||||||
Sabine Oil & Gas Corp. (A)(C) | 4 | 192 | ||||||
|
| |||||||
9,198 | ||||||||
|
| |||||||
Total Energy – 0.3% | 15,605 | |||||||
Financials |
| |||||||
Specialized Finance – 0.4% |
| |||||||
Maritime Finance Co. Ltd. (A)(C)(D)(E) | 1,750 | 17,640 | ||||||
|
| |||||||
Total Financials – 0.4% | 17,640 | |||||||
TOTAL COMMON STOCKS – 2.2% |
| $ | 99,739 | |||||
(Cost: 115,440) | ||||||||
PREFERRED STOCKS | ||||||||
Consumer Staples |
| |||||||
Agricultural Products – 0.5% |
| |||||||
Pinnacle Agriculture Enterprises LLC (A)(C)(D) | 37,029 | 23,328 | ||||||
|
| |||||||
Total Consumer Staples – 0.5% | 23,328 | |||||||
Telecommunication Services |
| |||||||
Integrated Telecommunication Services – 0.1% |
| |||||||
Frontier Communications Corp., Convertible Series A, 11.125% | 196 | 3,762 | ||||||
|
| |||||||
Total Telecommunication Services – 0.1% |
| 3,762 | ||||||
TOTAL PREFERRED STOCKS – 0.6% | $ | 27,090 | ||||||
(Cost: $33,402) |
WARRANTS | Shares | Value | ||||||
Agricultural Products – 0.0% |
| |||||||
ASG Consolidated LLC, expires 5–15–18 (D)(F) | 13 | $ | — | * | ||||
|
| |||||||
Apparel Retail – 0.0% |
| |||||||
St. John Knits International, Inc., expires 12–31–29 (F) | 48 | 127 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 0.0% |
| |||||||
Sabine Oil & Gas Corp., expires 12–29–29 (C)(F) | 16 | 103 | ||||||
|
| |||||||
103 | ||||||||
|
| |||||||
TOTAL WARRANTS – 0.0% | $ | 230 | ||||||
(Cost: $913) | ||||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Consumer Discretionary |
| |||||||
Advertising – 0.5% |
| |||||||
Acosta, Inc., | ||||||||
7.750%, 10–1–22 (G) | $ | 20,410 | 14,695 | |||||
Outfront Media Capital LLC and Outfront Media Capital Corp., | ||||||||
5.625%, 2–15–24 | 8,212 | 8,561 | ||||||
|
| |||||||
23,256 | ||||||||
|
| |||||||
Apparel Retail – 0.7% |
| |||||||
Hot Topic, Inc., | ||||||||
9.250%, 6–15–21 (G) | 35,881 | 30,319 | ||||||
|
| |||||||
Apparel, Accessories & Luxury Goods – 0.1% |
| |||||||
Wrangler Buyer Corp., | ||||||||
6.000%, 10–1–25 (G) | 2,162 | 2,200 | ||||||
|
| |||||||
Automotive Retail – 0.6% |
| |||||||
Allison Transmission, Inc., | ||||||||
5.000%, 10–1–24 (G) | 4,034 | 4,187 | ||||||
Group 1 Automotive, Inc., | ||||||||
5.000%, 6–1–22 | 3,436 | 3,560 | ||||||
Penske Automotive Group, Inc., | ||||||||
5.500%, 5–15–26 | 2,983 | 3,084 | ||||||
Sonic Automotive, Inc., | ||||||||
5.000%, 5–15–23 | 17,353 | 16,963 | ||||||
|
| |||||||
27,794 | ||||||||
|
| |||||||
Broadcasting – 2.9% |
| |||||||
Clear Channel International B.V., | ||||||||
8.750%, 12–15–20 (G) | 3,257 | 3,420 | ||||||
Clear Channel Outdoor Holdings, Inc., | ||||||||
6.500%, 11–15–22 | 43,832 | 45,096 | ||||||
Clear Channel Worldwide Holdings, Inc., Series A, | ||||||||
7.625%, 3–15–20 | 1,380 | 1,359 | ||||||
Clear Channel Worldwide Holdings, Inc., Series B, | ||||||||
7.625%, 3–15–20 | 28,217 | 27,864 | ||||||
Cumulus Media, Inc., | ||||||||
7.750%, 5–1–19 | 33,969 | 9,766 | ||||||
iHeartCommunications, Inc. (GTD by iHeartMedia Capital I LLC), | ||||||||
10.625%, 3–15–23 | 9,924 | 7,046 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Broadcasting (Continued) |
| |||||||
Sirius XM Radio, Inc., | ||||||||
4.625%, 5–15–23 (G) | $ | 33,613 | $ | 34,538 | ||||
|
| |||||||
129,089 | ||||||||
|
| |||||||
Cable & Satellite – 8.5% |
| |||||||
Altice Financing S.A.: | ||||||||
6.625%, 2–15–23 (G) | 12,126 | 12,854 | ||||||
7.500%, 5–15–26 (G) | 20,535 | 22,588 | ||||||
Altice S.A.: | ||||||||
7.250%, 5–15–22 (G)(H) | EUR | 3,821 | 4,800 | |||||
7.750%, 5–15–22 (G) | $ | 68,474 | 72,668 | |||||
6.250%, 2–15–25 (G)(H) | EUR | 3,496 | 4,483 | |||||
7.625%, 2–15–25 (G) | $ | 14,356 | 15,487 | |||||
Altice U.S. Finance I Corp., | ||||||||
5.500%, 5–15–26 (G) | 11,626 | 12,266 | ||||||
Block Communications, Inc., | ||||||||
6.875%, 2–15–25 (G) | 3,271 | 3,550 | ||||||
Cablevision Systems Corp., | ||||||||
5.875%, 9–15–22 | 8,681 | 8,985 | ||||||
CCO Holdings LLC and CCO Holdings Capital Corp.: | ||||||||
5.500%, 5–1–26 (G) | 5,722 | 5,930 | ||||||
5.000%, 2–1–28 (G) | 18,991 | 18,991 | ||||||
DISH DBS Corp.: | ||||||||
6.750%, 6–1–21 | 12,085 | 13,293 | ||||||
5.875%, 7–15–22 | 10,630 | 11,294 | ||||||
5.875%, 11–15–24 | 3,054 | 3,200 | ||||||
7.750%, 7–1–26 | 8,887 | 10,198 | ||||||
Neptune Finco Corp.: | ||||||||
10.125%, 1–15–23 (G) | 20,510 | 23,664 | ||||||
6.625%, 10–15–25 (G) | 6,478 | 7,093 | ||||||
10.875%, 10–15–25 (G) | 14,255 | 17,623 | ||||||
Numericable - SFR S.A., | ||||||||
7.375%, 5–1–26 (G) | 51,178 | 55,144 | ||||||
VTR Finance B.V., | ||||||||
6.875%, 1–15–24 (G) | 46,939 | 49,638 | ||||||
|
| |||||||
373,749 | ||||||||
|
| |||||||
Casinos & Gaming – 2.5% |
| |||||||
Gateway Casinos & Entertainment Ltd., | ||||||||
8.250%, 3–1–24 (G) | 11,851 | 12,444 | ||||||
Golden Nugget, Inc.: | ||||||||
6.750%, 10–15–24 (G) | 26,914 | 27,217 | ||||||
8.750%, 10–1–25 (G) | 10,766 | 10,954 | ||||||
Studio City Finance Ltd., | ||||||||
8.500%, 12–1–20 (G) | 8,973 | 9,231 | ||||||
Wynn Macau Ltd.: | ||||||||
5.250%, 10–15–21 (G) | 38,222 | 39,235 | ||||||
4.875%, 10–1–24 (G) | 3,705 | 3,775 | ||||||
5.500%, 10–1–27 (G) | 5,385 | 5,462 | ||||||
|
| |||||||
108,318 | ||||||||
|
| |||||||
Department Stores – 0.3% |
| |||||||
Bon-Ton Stores, Inc. (The), | ||||||||
8.000%, 6–15–21 | 37,256 | 13,412 | ||||||
|
| |||||||
Education Services – 1.9% |
| |||||||
Laureate Education, Inc., | ||||||||
8.250%, 5–1–25 (G) | 78,145 | 84,201 | ||||||
|
|
60 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Homefurnishing Retail – 0.5% |
| |||||||
Restoration Hardware Holdings, Inc., Convertible: | ||||||||
0.000%, 6–15–19 (G)(I) | $ | 8,977 | $ | 8,225 | ||||
0.000%, 7–15–20 (G)(I) | 14,358 | 12,249 | ||||||
|
| |||||||
20,474 | ||||||||
|
| |||||||
Leisure Facilities – 0.1% |
| |||||||
Cedar Fair L.P., Magnum Management Corp., Canada’s Wonderland Co. and Millennium Operations LLC, | ||||||||
5.375%, 4–15–27 (G) | 5,444 | 5,716 | ||||||
|
| |||||||
Movies & Entertainment – 1.3% |
| |||||||
Cinemark USA, Inc.: | ||||||||
5.125%, 12–15–22 | 1,258 | 1,291 | ||||||
4.875%, 6–1–23 | 21,139 | 21,350 | ||||||
EMI Music Publishing Group North America Holdings, | ||||||||
7.625%, 6–15–24 (G) | 7,135 | 7,938 | ||||||
WMG Acquisition Corp., | ||||||||
6.750%, 4–15–22 (G) | 25,538 | 26,847 | ||||||
|
| |||||||
57,426 | ||||||||
|
| |||||||
Publishing – 0.6% |
| |||||||
E.W. Scripps Co., | ||||||||
5.125%, 5–15–25 (G) | 1,630 | 1,662 | ||||||
MDC Partners, Inc., | ||||||||
6.500%, 5–1–24 (G) | 26,229 | 26,426 | ||||||
|
| |||||||
28,088 | ||||||||
|
| |||||||
Restaurants – 0.5% |
| |||||||
1011778 B.C. Unlimited Liability Co. and New Red Finance, Inc., | ||||||||
5.000%, 10–15–25 (G) | 21,714 | 22,094 | ||||||
|
| |||||||
Specialized Consumer Services – 0.5% |
| |||||||
Nielsen Co. (Luxembourg) S.a.r.l. (The): | ||||||||
5.500%, 10–1–21 (G) | 3,151 | 3,238 | ||||||
5.000%, 2–1–25 (G) | 5,614 | 5,846 | ||||||
Nielsen Finance LLC and Nielsen Finance Co., | ||||||||
5.000%, 4–15–22 (G) | 15,039 | 15,584 | ||||||
|
| |||||||
24,668 | ||||||||
|
| |||||||
Specialty Stores – 1.6% |
| |||||||
Cumberland Farms, Inc., | ||||||||
6.750%, 5–1–25 (G) | 8,822 | 9,376 | ||||||
Jo-Ann Stores Holdings, Inc. (9.750% Cash or 10.500% PIK), | ||||||||
9.750%, 10–15–19 (G)(J) | 64,495 | 62,721 | ||||||
|
| |||||||
72,097 | ||||||||
|
| |||||||
Total Consumer Discretionary – 23.1% |
| 1,022,901 | ||||||
Consumer Staples |
| |||||||
Food Distributors – 1.4% |
| |||||||
Performance Food Group, Inc., | ||||||||
5.500%, 6–1–24 (G) | 12,254 | 12,652 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Food Distributors (Continued) |
| |||||||
Simmons Foods, Inc., | ||||||||
7.875%, 10–1–21 (G) | $ | 34,500 | $ | 36,604 | ||||
U.S. Foods, Inc., | ||||||||
5.875%, 6–15–24 (G) | 10,878 | 11,395 | ||||||
|
| |||||||
60,651 | ||||||||
|
| |||||||
Packaged Foods & Meats – 2.1% |
| |||||||
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.), | ||||||||
7.750%, 10–28–20 (G) | 2,300 | 2,352 | ||||||
JBS USA LLC and JBS USA Finance, Inc.: | ||||||||
5.875%, 7–15–24 (G) | 25,097 | 25,160 | ||||||
5.750%, 6–15–25 (G) | 20,007 | 19,932 | ||||||
Pilgrim’s Pride Corp.: | ||||||||
5.750%, 3–15–25 (G) | 1,616 | 1,668 | ||||||
5.875%, 9–30–27 (G) | 7,546 | 7,735 | ||||||
Post Holdings, Inc.: | ||||||||
5.500%, 3–1–25 (G) | 4,205 | 4,362 | ||||||
5.000%, 8–15–26 (G) | 5,849 | 5,838 | ||||||
5.750%, 3–1–27 (G) | 25,924 | 26,702 | ||||||
|
| |||||||
93,749 | ||||||||
|
| |||||||
Personal Products – 0.1% |
| |||||||
Revlon Consumer Products Corp., | ||||||||
5.750%, 2–15–21 | 4,734 | 4,130 | ||||||
Revlon Escrow Corp., | ||||||||
6.250%, 8–1–24 | 2,924 | 2,259 | ||||||
|
| |||||||
6,389 | ||||||||
|
| |||||||
Total Consumer Staples – 3.6% |
| 160,789 | ||||||
Energy |
| |||||||
Oil & Gas Drilling – 1.3% |
| |||||||
KCA Deutag UK Finance plc: | ||||||||
7.250%, 5–15–21 (G) | 18,636 | 17,844 | ||||||
9.875%, 4–1–22 (G) | 11,507 | 11,938 | ||||||
Noble Holding International Ltd., | ||||||||
7.750%, 1–15–24 | 5,677 | 5,038 | ||||||
Offshore Drilling Holding S.A., | ||||||||
8.375%, 9–20–20 (G)(K) | 44,521 | 18,254 | ||||||
Offshore Group Investment Ltd., | ||||||||
0.000%, 11–1–19(D) | 14,866 | — | * | |||||
Rowan Cos., Inc. (GTD by Rowan plc), | ||||||||
7.375%, 6–15–25 | 3,398 | 3,322 | ||||||
Trinidad Drilling Ltd., | ||||||||
6.625%, 2–15–25 (G) | 280 | 262 | ||||||
|
| |||||||
56,658 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services – 0.4% |
| |||||||
Brand Energy & Infrastructure Services, Inc., | ||||||||
8.500%, 7–15–25 (G) | 7,963 | 8,620 | ||||||
SESI LLC: | ||||||||
7.125%, 12–15–21 | 6,059 | 6,180 | ||||||
7.750%, 9–15–24 (G) | 2,170 | 2,246 | ||||||
|
| |||||||
17,046 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Oil & Gas Exploration & Production – 4.2% |
| |||||||
Bellatrix Exploration Ltd., | ||||||||
8.500%, 5–15–20 (G) | $ | 13,598 | $ | 12,646 | ||||
California Resources Corp., | ||||||||
8.000%, 12–15–22 (G) | 4,662 | 3,030 | ||||||
Carrizo Oil & Gas, Inc., | ||||||||
7.500%, 9–15–20 | 5,785 | 5,908 | ||||||
Continental Resources, Inc. (GTD by Banner Pipeline Co. LLC and CLR Asset Holdings LLC), | ||||||||
5.000%, 9–15–22 | 14,182 | 14,413 | ||||||
Crownrock L.P., | ||||||||
7.750%, 2–15–23 (G) | 6,941 | 7,410 | ||||||
EnCana Corp., | ||||||||
6.500%, 8–15–34 | 7,113 | 8,321 | ||||||
Endeavor Energy Resources L.P.: | ||||||||
7.000%, 8–15–21 (G) | 24,868 | 25,738 | ||||||
8.125%, 9–15–23 (G) | 6,146 | 6,607 | ||||||
Laredo Petroleum, Inc.: | ||||||||
7.375%, 5–1–22 | 17,510 | 18,123 | ||||||
6.250%, 3–15–23 | 3,784 | 3,897 | ||||||
Murphy Oil USA, Inc. (GTD by Murphy USA), | ||||||||
5.625%, 5–1–27 | 1,629 | 1,751 | ||||||
PDC Energy, Inc., | ||||||||
6.125%, 9–15–24 | 2,310 | 2,414 | ||||||
Seven Generations Energy Ltd.: | ||||||||
8.250%, 5–15–20 (G) | 15,124 | 15,804 | ||||||
6.750%, 5–1–23 (G) | 27,127 | 28,585 | ||||||
5.375%, 9–30–25 (G) | 10,771 | 10,852 | ||||||
Ultra Resources, Inc.: | ||||||||
6.875%, 4–15–22 (G) | 9,273 | 9,459 | ||||||
7.125%, 4–15–25 (G) | 2,726 | 2,753 | ||||||
Whiting Petroleum Corp., | ||||||||
5.750%, 3–15–21 | 6,223 | 6,114 | ||||||
|
| |||||||
183,825 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 0.1% |
| |||||||
Callon Petroleum Co. (GTD by Callon Petroleum Operating Co.), | ||||||||
6.125%, 10–1–24 | 5,596 | 5,848 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 0.0% |
| |||||||
Crestwood Midstream Partners L.P. and Crestwood Midstream Finance Corp., | ||||||||
6.250%, 4–1–23 | 2,433 | 2,509 | ||||||
|
| |||||||
Total Energy – 6.0% |
| 265,886 | ||||||
Financials |
| |||||||
Consumer Finance – 1.5% |
| |||||||
Creditcorp, | ||||||||
12.000%, 7–15–18 (G) | 40,520 | 34,847 | ||||||
CURO Financial Technologies Corp., | ||||||||
12.000%, 3–1–22 (G) | 5,881 | 6,322 | ||||||
Quicken Loans, Inc., | ||||||||
5.750%, 5–1–25 (G) | 23,889 | 25,084 | ||||||
|
| |||||||
66,253 | ||||||||
|
|
2017 | SEMIANNUAL REPORT | 61 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Insurance Brokers – 0.7% |
| |||||||
NFP Corp., | ||||||||
6.875%, 7–15–25 (G) | $ | 32,425 | $ | 32,911 | ||||
|
| |||||||
Investment Banking & Brokerage – 0.2% |
| |||||||
E*TRADE Financial Corp., | ||||||||
5.875%, 12–29–49 | 4,068 | 4,332 | ||||||
VHF Parent LLC, | ||||||||
6.750%, 6–15–22 (G) | 3,797 | 3,954 | ||||||
|
| |||||||
8,286 | ||||||||
|
| |||||||
Other Diversified Financial Services – 3.0% |
| |||||||
AAF Holdings LLC and AAF Finance Co. | ||||||||
(12.000% Cash or 12.750% PIK), | ||||||||
12.000%, 7–1–19 (G)(J) | 10,702 | 11,184 | ||||||
Balboa Merger Sub, Inc., | ||||||||
11.375%, 12–1–21 (G) | 22,692 | 24,819 | ||||||
New Cotai LLC and New Cotai Capital Corp. | ||||||||
(10.625% Cash or 10.625% PIK), | ||||||||
10.625%, 5–1–19 (G)(J) | 96,762 | 94,827 | ||||||
|
| |||||||
130,830 | ||||||||
|
| |||||||
Specialized Finance – 1.9% |
| |||||||
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.: | ||||||||
5.875%, 6–15–21 (G) | 4,154 | 4,343 | ||||||
5.450%, 6–15–23 (G) | 2,979 | 3,267 | ||||||
7.125%, 6–15–24 (G) | 4,154 | 4,589 | ||||||
6.020%, 6–15–26 (G) | 5,960 | 6,617 | ||||||
Flexi-Van Leasing, Inc., | ||||||||
7.875%, 8–15–18 (G) | 12,769 | 12,769 | ||||||
TMX Finance LLC and TitleMax Finance Corp., | ||||||||
8.500%, 9–15–18 (G) | 57,305 | 53,007 | ||||||
|
| |||||||
84,592 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance – 0.3% |
| |||||||
Provident Funding Associates L.P. and PFG Finance Corp., | ||||||||
6.375%, 6–15–25 (G) | 13,571 | 14,249 | ||||||
|
| |||||||
Total Financials – 7.6% |
| 337,121 | ||||||
Health Care |
| |||||||
Health Care Facilities – 1.3% |
| |||||||
DaVita HealthCare Partners, Inc., | ||||||||
5.125%, 7–15–24 | 2,970 | 2,957 | ||||||
Greatbatch Ltd., | ||||||||
9.125%, 11–1–23 (G) | 20,906 | 22,804 | ||||||
HCA, Inc. (GTD by HCA Holdings, Inc.), | ||||||||
5.250%, 6–15–26 | 2,404 | 2,590 | ||||||
MPH Acquisition Holdings LLC, | ||||||||
7.125%, 6–1–24 (G) | 8,898 | 9,565 | ||||||
Surgery Center Holdings, Inc., | ||||||||
8.875%, 4–15–21 (G) | 17,519 | 18,395 | ||||||
Tenet Healthcare Corp., | ||||||||
7.500%, 1–1–22 (G) | 1,985 | 2,102 | ||||||
|
| |||||||
58,413 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Health Care Supplies – 0.8% |
| |||||||
Kinetic Concepts, Inc. and KCI USA, Inc., | ||||||||
12.500%, 11–1–21 (G) | $ | 2,794 | $ | 3,108 | ||||
Universal Hospital Services, Inc., | ||||||||
7.625%, 8–15–20 | 30,077 | 30,453 | ||||||
|
| |||||||
33,561 | ||||||||
|
| |||||||
Life Sciences Tools & Services – 0.6% |
| |||||||
Avantor, Inc.: | ||||||||
6.000%, 10–1–24 (G) | 8,080 | 8,272 | ||||||
9.000%, 10–1–25 (G) | 18,852 | 19,276 | ||||||
|
| |||||||
27,548 | ||||||||
|
| |||||||
Pharmaceuticals – 1.6% |
| |||||||
Concordia Healthcare Corp.: | ||||||||
9.500%, 10–21–22 (G) | 59,541 | 10,419 | ||||||
7.000%, 4–15–23 (G) | 7,125 | 1,158 | ||||||
IMS Health, Inc., | ||||||||
5.000%, 10–15–26 (G) | 6,780 | 7,187 | ||||||
Valeant Pharmaceuticals International, Inc.: | ||||||||
7.000%, 10–1–20 | 8,127 | 8,178 | ||||||
5.500%, 3–1–23 (G) | 545 | 478 | ||||||
VPII Escrow Corp., | ||||||||
7.500%, 7–15–21 (G) | 6,802 | 6,785 | ||||||
VRX Escrow Corp.: | ||||||||
5.375%, 3–15–20 (G) | 12,225 | 12,210 | ||||||
5.875%, 5–15–23 (G) | 8,682 | 7,673 | ||||||
6.125%, 4–15–25 (G) | 16,249 | 14,258 | ||||||
|
| |||||||
68,346 | ||||||||
|
| |||||||
Total Health Care – 4.3% |
| 187,868 | ||||||
Industrials |
| |||||||
Aerospace & Defense – 1.8% |
| |||||||
KLX, Inc., | ||||||||
5.875%, 12–1–22 (G) | 21,081 | 22,086 | ||||||
TransDigm, Inc., | ||||||||
6.500%, 5–15–25 | 5,455 | 5,619 | ||||||
TransDigm, Inc. (GTD by TransDigm Group, Inc.): | ||||||||
6.000%, 7–15–22 | 13,200 | 13,695 | ||||||
6.500%, 7–15–24 | 27,597 | 28,494 | ||||||
6.375%, 6–15–26 | 10,559 | 10,816 | ||||||
|
| |||||||
80,710 | ||||||||
|
| |||||||
Air Freight & Logistics – 0.3% |
| |||||||
XPO Logistics, Inc.: | ||||||||
6.500%, 6–15–22 (G) | 7,550 | 7,928 | ||||||
6.125%, 9–1–23 (G) | 4,075 | 4,253 | ||||||
|
| |||||||
12,181 | ||||||||
|
| |||||||
Building Products – 1.1% |
| |||||||
Alcoa Nederland Holding B.V.: | ||||||||
6.750%, 9–30–24 (G) | 2,557 | 2,832 | ||||||
7.000%, 9–30–26 (G) | 2,557 | 2,896 | ||||||
Ply Gem Industries, Inc., | ||||||||
6.500%, 2–1–22 | 28,758 | 30,004 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Building Products (Continued) |
| |||||||
Summit Materials LLC and Summit Materials Finance Corp.: | ||||||||
8.500%, 4–15–22 | $ | 2,416 | $ | 2,718 | ||||
6.125%, 7–15–23 | 5,046 | 5,323 | ||||||
WESCO Distribution, Inc. (GTD by WESCO International, Inc.), | ||||||||
5.375%, 6–15–24 | 5,940 | 6,267 | ||||||
|
| |||||||
50,040 | ||||||||
|
| |||||||
Diversified Support Services – 0.5% |
| |||||||
Ahern Rentals, Inc., | ||||||||
7.375%, 5–15–23 (G) | 17,389 | 15,911 | ||||||
Ritchie Bros. Auctioneers, Inc., | ||||||||
5.375%, 1–15–25 (G) | 5,675 | 6,001 | ||||||
United Rentals (North America), Inc. (GTD by United Rentals, Inc.), | ||||||||
5.875%, 9–15–26 | 1,490 | 1,619 | ||||||
|
| |||||||
23,531 | ||||||||
|
| |||||||
Environmental & Facilities Services – 0.2% |
| |||||||
GFL Environmental, Inc.: | ||||||||
9.875%, 2–1–21 (G) | 5,386 | 5,741 | ||||||
5.625%, 5–1–22 (G) | 3,790 | 3,942 | ||||||
|
| |||||||
9,683 | ||||||||
|
| |||||||
Industrial Conglomerates – 0.0% |
| |||||||
TriMas Corp., | ||||||||
4.875%, 10–15–25 (G) | 1,077 | 1,086 | ||||||
|
| |||||||
Research & Consulting Services – 0.1% |
| |||||||
Eagle Holding Co. II LLC (7.625% Cash or 8.375% PIK), | ||||||||
7.625%, 5–15–22 (G)(J) | 2,173 | 2,254 | ||||||
|
| |||||||
Security & Alarm Services – 1.1% |
| |||||||
Prime Security Services Borrower LLC, | ||||||||
9.250%, 5–15–23 (G) | 42,686 | 47,106 | ||||||
|
| |||||||
Total Industrials – 5.1% |
| 226,591 | ||||||
Information Technology |
| |||||||
Application Software – 1.5% |
| |||||||
Kronos Acquisition Holdings, Inc., | ||||||||
9.000%, 8–15–23 (G) | 64,021 | 62,421 | ||||||
Solera LLC and Solera Finance, Inc., | ||||||||
10.500%, 3–1–24 (G) | 4,337 | 4,937 | ||||||
|
| |||||||
67,358 | ||||||||
|
| |||||||
Communications Equipment – 0.5% |
| |||||||
West Corp., | ||||||||
5.375%, 7–15–22 (G) | 20,642 | 20,848 | ||||||
|
| |||||||
Data Processing & Outsourced Services – 2.4% |
| |||||||
Alliance Data Systems Corp.: | ||||||||
5.875%, 11–1–21 (G) | 7,708 | 8,016 | ||||||
5.375%, 8–1–22 (G) | 29,436 | 30,319 | ||||||
Italics Merger Sub, Inc., | ||||||||
7.125%, 7–15–23 (G) | 59,658 | 59,956 |
62 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Data Processing & Outsourced Services (Continued) |
| |||||||
j2 Cloud Services LLC and j2 Global, Inc., | ||||||||
6.000%, 7–15–25 (G) | $ | 5,422 | $ | 5,673 | ||||
|
| |||||||
103,964 | ||||||||
|
| |||||||
Electronic Components – 0.1% |
| |||||||
TTM Technologies, Inc., | ||||||||
5.625%, 10–1–25 (G) | 5,385 | 5,449 | ||||||
|
| |||||||
IT Consulting & Other Services – 1.1% |
| |||||||
Cardtronics, Inc. and Cardtronics USA, Inc., | ||||||||
5.500%, 5–1–25 (G) | 3,285 | 3,361 | ||||||
NCR Escrow Corp.: | ||||||||
5.875%, 12–15–21 | 21,676 | 22,396 | ||||||
6.375%, 12–15–23 | 20,537 | 21,905 | ||||||
|
| |||||||
47,662 | ||||||||
|
| |||||||
Semiconductors – 0.3% |
| |||||||
Micron Technology, Inc.: | ||||||||
7.500%, 9–15–23 | 12,294 | 13,662 | ||||||
5.500%, 2–1–25 | 1,035 | 1,103 | ||||||
|
| |||||||
14,765 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 0.5% |
| |||||||
Western Digital Corp.: | ||||||||
7.375%, 4–1–23 (G) | 3,009 | 3,296 | ||||||
10.500%, 4–1–24 | 16,726 | 19,653 | ||||||
|
| |||||||
22,949 | ||||||||
|
| |||||||
Total Information Technology – 6.4% |
| 282,995 | ||||||
Materials |
| |||||||
Aluminum – 2.1% |
| |||||||
Constellium N.V.: | ||||||||
8.000%, 1–15–23 (G) | 34,437 | 36,417 | ||||||
5.750%, 5–15–24 (G) | 16,523 | 16,523 | ||||||
6.625%, 3–1–25 (G) | 22,308 | 22,838 | ||||||
Kaiser Aluminum Corp., | ||||||||
5.875%, 5–15–24 | 2,392 | 2,560 | ||||||
Novelis Corp. (GTD by Novelis, Inc.): | ||||||||
6.250%, 8–15–24 (G) | 8,724 | 9,096 | ||||||
5.875%, 9–30–26 (G) | 5,784 | 5,871 | ||||||
|
| |||||||
93,305 | ||||||||
|
| |||||||
Commodity Chemicals – 0.4% |
| |||||||
NOVA Chemicals Corp.: | ||||||||
4.875%, 6–1–24 (G) | 13,567 | 13,737 | ||||||
5.250%, 6–1–27 (G) | 5,427 | 5,481 | ||||||
|
| |||||||
19,218 | ||||||||
|
| |||||||
Construction Materials – 0.7% |
| |||||||
Hillman Group, Inc. (The), | ||||||||
6.375%, 7–15–22 (G) | 30,106 | 29,955 | ||||||
|
| |||||||
Diversified Chemicals – 0.4% |
| |||||||
PSPC Escrow Corp., | ||||||||
6.500%, 2–1–22 (G) | 11,779 | 12,206 | ||||||
PSPC Escrow II Corp., | ||||||||
10.375%, 5–1–21 (G) | 5,919 | 6,452 | ||||||
|
| |||||||
18,658 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Diversified Metals & Mining – 0.4% |
| |||||||
Artsonig Pty Ltd. (11.500% Cash or 12.000% PIK), | ||||||||
11.500%, 4–1–19 (G)(J) | $ | 52,349 | $ | 524 | ||||
Crystal Merger Sub, Inc., | ||||||||
7.625%, 10–15–21 (G) | 8,259 | 8,584 | ||||||
FMG Resources August 2006 Partners Ltd., | ||||||||
5.125%, 5–15–24 (G) | 1,388 | 1,409 | ||||||
Lundin Mining Corp.: | ||||||||
7.500%, 11–1–20 (G) | 1,178 | 1,225 | ||||||
7.875%, 11–1–22 (G) | 3,980 | 4,328 | ||||||
|
| |||||||
16,070 | ||||||||
|
| |||||||
Fertilizers & Agricultural Chemicals – 1.2% |
| |||||||
CF Industries, Inc., | ||||||||
3.450%, 6–1–23 | 2,162 | 2,135 | ||||||
Pinnacle Operating Corp., | ||||||||
9.000%, 5–15–23 (G) | 53,335 | 50,401 | ||||||
|
| |||||||
52,536 | ||||||||
|
| |||||||
Metal & Glass Containers – 1.9% |
| |||||||
ARD Finance S.A., | ||||||||
7.125%, 9–15–23 | 3,217 | 3,434 | ||||||
BakerCorp International, Inc., | ||||||||
8.250%, 6–1–19 | 67,965 | 63,208 | ||||||
HudBay Minerals, Inc.: | ||||||||
7.250%, 1–15–23 (G) | 2,262 | 2,409 | ||||||
7.625%, 1–15–25 (G) | 3,395 | 3,675 | ||||||
Signode Industrial Group, | ||||||||
6.375%, 5–1–22 (G) | 11,052 | 11,466 | ||||||
|
| |||||||
84,192 | ||||||||
|
| |||||||
Paper Packaging – 0.3% |
| |||||||
Flex Acquisition Co., Inc., | ||||||||
6.875%, 1–15–25 (G) | 3,940 | 4,090 | ||||||
Reynolds Group Issuer, Inc., Reynolds Group Issuer LLC and Reynolds Group Issuer (Luxembourg) S.A., | ||||||||
5.125%, 7–15–23 (G) | 8,571 | 8,945 | ||||||
|
| |||||||
13,035 | ||||||||
|
| |||||||
Specialty Chemicals – 0.1% |
| |||||||
Kraton Polymers LLC and Kraton Polymers Capital Corp., | ||||||||
7.000%, 4–15–25 (G) | 5,507 | 5,906 | ||||||
|
| |||||||
Steel – 0.1% |
| |||||||
U.S. Steel Corp., | ||||||||
8.375%, 7–1–21 (G) | 4,186 | 4,626 | ||||||
|
| |||||||
Total Materials – 7.6% |
| 337,501 | ||||||
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 | 3,023 | ||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Real Estate Development – 0.4% |
| |||||||
Hub Holdings LLC and Hub Holdings Finance, Inc. (8.125% Cash or 8.875% PIK), | ||||||||
8.125%, 7–15–19 (G)(J) | $ | 17,764 | $ | 17,808 | ||||
|
| |||||||
Total Real Estate – 0.5% |
| 20,831 | ||||||
Telecommunication Services |
| |||||||
Alternative Carriers – 0.6% |
| |||||||
Consolidated Communications Finance II Co., | ||||||||
6.500%, 10–1–22 | 21,192 | 20,371 | ||||||
Zayo Group LLC and Zayo Capital, Inc., | ||||||||
5.750%, 1–15–27 (G) | 4,500 | 4,770 | ||||||
|
| |||||||
25,141 | ||||||||
|
| |||||||
Integrated Telecommunication Services – 3.4% |
| |||||||
Frontier Communications Corp.: | ||||||||
6.250%, 9–15–21 | 15,908 | 13,080 | ||||||
10.500%, 9–15–22 | 20,679 | 18,042 | ||||||
7.125%, 1–15–23 | 2,412 | 1,845 | ||||||
6.875%, 1–15–25 | 8,428 | 6,300 | ||||||
11.000%, 9–15–25 | 23,102 | 19,637 | ||||||
GCI, Inc., | ||||||||
6.875%, 4–15–25 | 22,144 | 23,805 | ||||||
Sprint Corp.: | ||||||||
7.250%, 9–15–21 | 43,872 | 48,753 | ||||||
7.875%, 9–15–23 | 16,141 | 18,723 | ||||||
|
| |||||||
150,185 | ||||||||
|
| |||||||
Wireless Telecommunication Service – 1.4% |
| |||||||
Sable International Finance Ltd., | ||||||||
6.875%, 8–1–22 (G) | 26,720 | 28,724 | ||||||
Sprint Nextel Corp.: | ||||||||
9.000%, 11–15–18 (G) | 1,367 | 1,468 | ||||||
7.000%, 8–15–20 | 3,022 | 3,302 | ||||||
11.500%, 11–15–21 | 2,342 | 2,977 | ||||||
T–Mobile USA, Inc.: | ||||||||
6.000%, 4–15–24 | 10,395 | 11,032 | ||||||
6.500%, 1–15–26 | 12,863 | 14,197 | ||||||
|
| |||||||
61,700 | ||||||||
|
| |||||||
Total Telecommunication Services – 5.4% |
| 237,026 | ||||||
TOTAL CORPORATE DEBT |
| $ | 3,079,509 | |||||
(Cost: $3,174,500) |
| |||||||
LOANS (L) | ||||||||
Consumer Discretionary |
| |||||||
Advertising – 0.4% |
| |||||||
Advantage Sales & Marketing, Inc. (ICE LIBOR plus 650 bps), | ||||||||
7.735%, 7–25–22 | 18,474 | 16,525 | ||||||
|
|
2017 | SEMIANNUAL REPORT | 63 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
LOANS (L) (Continued) | Principal | Value | ||||||
Apparel Retail – 1.6% |
| |||||||
Talbots, Inc. (The) (ICE LIBOR plus 450 bps), | ||||||||
5.735%, 3–19–20 | $ | 19,207 | $ | 18,439 | ||||
Talbots, Inc. (The) (ICE LIBOR plus 850 bps), | ||||||||
9.735%, 3–19–21 (D) | 33,232 | 32,235 | ||||||
True Religion Apparel, Inc. (ICE LIBOR plus 487.5 bps): | ||||||||
6.101%, 7–30���19 (M) | 202 | 52 | ||||||
6.171%, 7–30–19 (M) | 77,951 | 19,877 | ||||||
|
| |||||||
70,603 | ||||||||
|
| |||||||
Casinos & Gaming – 0.1% |
| |||||||
Gateway Casinos & Entertainment Ltd. (ICE LIBOR plus 375 bps), | ||||||||
5.083%, 2–22–23 | 3,910 | 3,931 | ||||||
|
| |||||||
Department Stores – 0.9% |
| |||||||
Belk, Inc. | ||||||||
6.054%, 12–10–22 | 45,066 | 37,692 | ||||||
|
| |||||||
Education Services – 1.4% |
| |||||||
Laureate Education, Inc. (ICE LIBOR plus 450 bps), | ||||||||
5.735%, 4–26–24 | 62,411 | 62,632 | ||||||
|
| |||||||
General Merchandise Stores – 2.1% |
| |||||||
BJ’s Wholesale Club, Inc. (ICE LIBOR plus 375 bps), | ||||||||
4.982%, 2–3–24 | 36,459 | 34,896 | ||||||
BJ’s Wholesale Club, Inc. (ICE LIBOR plus 750 bps), | ||||||||
8.732%, 1–26–25 | 28,637 | 27,306 | ||||||
Orchard Acquisition Co. LLC (ICE LIBOR plus 600 bps), | ||||||||
7.313%, 2–8–19 | 63,765 | 29,757 | ||||||
|
| |||||||
91,959 | ||||||||
|
| |||||||
Home Furnishings – 0.6% |
| |||||||
Serta Simmons Bedding LLC (ICE LIBOR plus 800 bps), | ||||||||
9.312%, 11–8–24 | 26,971 | 25,875 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 0.0% |
| |||||||
Travel Leaders Group LLC (ICE LIBOR plus 450 bps), | ||||||||
5.814%, 1–25–24 | 1,681 | 1,703 | ||||||
|
| |||||||
Housewares & Specialties – 0.4% |
| |||||||
KIK Custom Products, Inc. (ICE LIBOR plus 450 bps), | ||||||||
5.737%, 8–26–22 | 16,302 | 16,448 | ||||||
|
| |||||||
Restaurants – 0.4% |
| |||||||
NPC International, Inc. | ||||||||
4.738%, 4–20–24 | 3,828 | 3,866 | ||||||
NPC International, Inc. | ||||||||
8.738%, 4–18–25 | 15,590 | 15,785 | ||||||
|
| |||||||
19,651 | ||||||||
|
|
LOANS (L) (Continued) | Principal | Value | ||||||
Specialized Consumer Services – 0.1% |
| |||||||
Asurion LLC | ||||||||
7.235%, 8–4–25 | $ | 2,700 | $ | 2,759 | ||||
|
| |||||||
Specialty Stores – 0.4% |
| |||||||
Jo–Ann Stores, Inc. (ICE LIBOR plus 500 bps), | ||||||||
6.391%, 10–21–23 | 15,450 | 14,736 | ||||||
|
| |||||||
Total Consumer Discretionary – 8.4% |
| 364,514 | ||||||
Consumer Staples |
| |||||||
Food Distributors – 0.3% |
| |||||||
Chefs’ Warehouse, Inc. (The) (ICE LIBOR plus 575 bps), | ||||||||
5.990%, 6–22–22 | 11,926 | 12,060 | ||||||
|
| |||||||
Hypermarkets & Super Centers – 0.4% |
| |||||||
GOBP Holdings, Inc. | ||||||||
9.583%, 10–21–22 | 15,658 | 15,688 | ||||||
|
| |||||||
Packaged Foods & Meats – 0.4% |
| |||||||
Shearer’s Foods LLC (ICE LIBOR plus 675 bps), | ||||||||
8.083%, 6–30–22 (D) | 18,980 | 17,936 | ||||||
|
| |||||||
Total Consumer Staples – 1.1% |
| 45,684 | ||||||
Energy |
| |||||||
Coal & Consumable Fuels – 1.1% |
| |||||||
Foresight Energy LLC |
| |||||||
7.083%, 3–28–22 | 35,620 | 33,238 | ||||||
Westmoreland Coal Co. | ||||||||
7.833%, 12–16–20 (D) | 19,953 | 12,969 | ||||||
|
| |||||||
46,207 | ||||||||
|
| |||||||
Oil & Gas Drilling – 0.6% |
| |||||||
KCA Deutag Alpha Ltd. (ICE LIBOR plus 525 bps), | ||||||||
7.065%, 5–16–20 | 26,249 | 25,273 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 0.5% |
| |||||||
Brand Energy & Infrastructure Services, Inc. | ||||||||
5.514%, 6–21–24 | 9,068 | 9,111 | ||||||
5.564%, 6–21–24 | 1,728 | 1,737 | ||||||
5.583%, 6–21–24 | 27 | 27 | ||||||
Larchmont Resources LLC (10.000% |
| |||||||
10.320%, 8–7–20 (D)(J)(R) | 12,317 | 11,947 | ||||||
|
| |||||||
22,822 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 0.4% |
| |||||||
Chesapeake Energy Corp. (ICE LIBOR plus 750 bps), | ||||||||
8.814%, 8–23–21 | 17,434 | 18,769 | ||||||
|
|
LOANS (L) (Continued) | Principal | Value | ||||||
Oil & Gas Storage & Transportation – 1.3% |
| |||||||
Bowie Resources Holdings LLC (ICE LIBOR plus 1,075 bps), | ||||||||
11.985%, 2–16–21 | $ | 26,759 | $ | 24,830 | ||||
Bowie Resources Holdings LLC (ICE LIBOR plus 575 bps), | ||||||||
6.985%, 8–12–20 | 33,170 | 31,967 | ||||||
|
| |||||||
56,797 | ||||||||
|
| |||||||
Total Energy – 3.9% |
| 169,868 | ||||||
Financials |
| |||||||
Insurance Brokers – 0.2% |
| |||||||
NFP Corp. | ||||||||
4.735%, 1–8–24 | 6,938 | 6,982 | ||||||
|
| |||||||
Investment Banking & Brokerage – 0.5% |
| |||||||
Jane Street Group LLC (ICE LIBOR plus 450 bps), | ||||||||
5.735%, 8–25–22 | 21,610 | 21,786 | ||||||
|
| |||||||
Specialized Finance – 0.1% |
| |||||||
Orchestra Borrower LLC and Orchestra Co–Issuer, Inc. (3–Month ICE LIBOR plus 375 bps), | ||||||||
5.061%, 12–30–21 | 3,714 | 3,751 | ||||||
|
| |||||||
Total Financials – 0.8% |
| 32,519 | ||||||
Health Care |
| |||||||
Life Sciences Tools & Services – 0.3% |
| |||||||
Avantor, Inc., | ||||||||
0.000%, 9–22–24 (N) | 13,419 | 13,456 | ||||||
|
| |||||||
Total Health Care – 0.3% |
| 13,456 | ||||||
Industrials |
| |||||||
Building Products – 0.5% |
| |||||||
Hampton Rubber Co. & SEI Holding Corp. (ICE LIBOR plus 800 bps), | ||||||||
9.235%, 3–27–22 | 23,667 | 20,916 | ||||||
|
| |||||||
Construction & Engineering – 0.3% |
| |||||||
Tensar International Corp. | ||||||||
9.833%, 7–10–22 (D) | 15,197 | 12,158 | ||||||
|
| |||||||
Diversified Support Services – 0.3% |
| |||||||
USS Ultimate Holdings, Inc. | ||||||||
4.984%, 8–25–24 | 6,483 | 6,548 | ||||||
USS Ultimate Holdings, Inc. (ICE LIBOR plus 775 bps), | ||||||||
8.985%, 8–25–25 | 5,403 | 5,430 | ||||||
|
| |||||||
11,978 | ||||||||
|
|
64 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
LOANS (L) (Continued) | Principal | Value | ||||||
Industrial Conglomerates – 1.0% |
| |||||||
Crosby Worldwide Ltd. | ||||||||
4.315%, 11–22–20 | $ | 5,587 | $ | 5,154 | ||||
Crosby Worldwide Ltd. | ||||||||
7.315%, 11–22–21 | 10,976 | 9,055 | ||||||
PAE Holding Corp. | ||||||||
6.735%, 10–20–22 | 26,279 | 26,378 | ||||||
PAE Holding Corp. (ICE LIBOR plus 950 bps), | ||||||||
10.735%, 10–20–23 | 4,490 | 4,496 | ||||||
|
| |||||||
45,083 | ||||||||
|
| |||||||
Industrial Machinery – 1.4% |
| |||||||
Dynacast International LLC | ||||||||
9.833%, 1–30–23(D) | 61,040 | 61,040 | ||||||
|
| |||||||
Total Industrials – 3.5% |
| 151,175 | ||||||
Information Technology |
| |||||||
Application Software – 0.5% |
| |||||||
TIBCO Software, Inc. | ||||||||
4.740%, 12–4–20 | 21,073 | 21,126 | ||||||
|
| |||||||
Applications Software – 0.2% |
| |||||||
Applied Systems, Inc., | ||||||||
0.000%, 9–18–25 (N) | 8,585 | 8,843 | ||||||
|
| |||||||
Data Processing & Outsourced Services – 0.1% |
| |||||||
Colorado Buyer, Inc. | ||||||||
8.570%, 5–1–25 | 4,407 | 4,466 | ||||||
|
| |||||||
Internet Software & Services – 1.2% |
| |||||||
Ancestry.com LLC (ICE LIBOR plus 825 bps), | ||||||||
9.490%, 10–19–24 | 8,329 | 8,443 | ||||||
TravelCLICK, Inc. & TCH–2 Holdings LLC (ICE LIBOR plus 400 bps), | ||||||||
5.235%, 5–12–21 | 20,644 | 20,721 | ||||||
TravelCLICK, Inc. & TCH–2 Holdings LLC (ICE LIBOR plus 775 bps), | ||||||||
8.985%, 11–12–21 (D) | 23,427 | 23,427 | ||||||
|
| |||||||
52,591 | ||||||||
|
| |||||||
IT Consulting & Other Services – 0.0% |
| |||||||
Triple Point Group Holdings, Inc. (ICE LIBOR plus 425 bps), | ||||||||
5.583%, 7–13–20 | 1,839 | 1,676 | ||||||
|
| |||||||
Total Information Technology – 2.0% |
| 88,702 |
LOANS (L) (Continued) | Principal | Value | ||||||
Materials |
| |||||||
Diversified Metals & Mining – 0.3% |
| |||||||
EP Minerals LLC (ICE LIBOR plus 750 bps), | ||||||||
8.817%, 8–20–21 (D) | $ | 12,375 | $ | 12,004 | ||||
|
| |||||||
Paper Packaging – 1.0% |
| |||||||
FPC Holdings, Inc. (ICE LIBOR plus 800 bps), | ||||||||
9.333%, 5–27–20 | 31,969 | 30,637 | ||||||
Ranpak (Rack Merger) (ICE LIBOR plus 725 bps), | ||||||||
8.484%, 10–1–22 (D) | 14,052 | 13,912 | ||||||
|
| |||||||
44,549 | ||||||||
|
| |||||||
Total Materials – 1.3% |
| 56,553 | ||||||
TOTAL LOANS – 21.3% |
| $ | 922,471 | |||||
(Cost: $1,036,355) | ||||||||
SHORT–TERM SECURITIES | ||||||||
Commercial Paper (O) – 5.1% |
| |||||||
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.), | ||||||||
1.580%, 10–10–17 | 5,000 | 4,998 | ||||||
DTE Electric Co., | ||||||||
1.281%, 10–4–17 | 10,000 | 9,998 | ||||||
E.I. du Pont de Nemours and Co.: | ||||||||
1.510%, 10–10–17 | 10,375 | 10,371 | ||||||
1.460%, 10–17–17 | 15,000 | 14,990 | ||||||
1.460%, 10–18–17 | 2,500 | 2,498 | ||||||
1.440%, 10–25–17 | 15,000 | 14,985 | ||||||
General Mills, Inc., | ||||||||
1.470%, 10–16–17 | 10,000 | 9,994 | ||||||
International Paper Co.: | ||||||||
1.330%, 10–6–17 | 5,000 | 4,998 | ||||||
1.500%, 10–11–17 | 5,000 | 4,998 | ||||||
J.M. Smucker Co. (The), | ||||||||
1.371%, 10–6–17 | 20,000 | 19,995 | ||||||
Kellogg Co., | ||||||||
1.480%, 10–13–17 | 5,000 | 4,997 | ||||||
McCormick & Co., Inc., | ||||||||
1.341%, 10–4–17 | 16,000 | 15,997 | ||||||
Medtronic Global Holdings SCA, | ||||||||
1.231%, 10–2–17 | 5,000 | 4,999 | ||||||
Mondelez International, Inc.: | ||||||||
1.382%, 10–2–17 | 15,000 | 14,998 | ||||||
1.371%, 10–4–17 | 20,000 | 19,996 | ||||||
1.510%, 10–10–17 | 11,000 | 10,996 | ||||||
Sysco Corp., | ||||||||
1.350%, 10–2–17 | 13,470 | 13,468 | ||||||
Virginia Electric and Power Co., | ||||||||
1.570%, 10–11–17 | 20,000 | 19,990 | ||||||
Walgreens Boots Alliance, Inc.: | ||||||||
1.360%, 10–5–17 | 7,000 | 6,999 | ||||||
1.500%, 10–11–17 | 14,500 | 14,493 | ||||||
|
| |||||||
224,758 | ||||||||
|
|
SHORT–TERM SECURITIES (Continued) | Principal | Value | ||||||
Master Note – 0.2% |
| |||||||
Toyota Motor Credit Corp. | ||||||||
1.450%, 10–4–17 (P) | $ | 6,661 | $ | 6,661 | ||||
|
| |||||||
TOTAL SHORT–TERM SECURITIES – 5.3% |
| $ | 231,419 | |||||
(Cost: $231,439) | ||||||||
TOTAL INVESTMENT SECURITIES –99.0% |
| $ | 4,360,458 | |||||
(Cost: $4,592,049) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES (Q) – 1.0% |
| 45,019 | ||||||
NET ASSETS – 100.0% |
| $ | 4,405,477 |
2017 | SEMIANNUAL REPORT | 65 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (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, 2017, the Fund owned the following restricted securities: |
Security | Acquisition Date(s) | Shares | Cost | Market Value | ||||||||||||||||
Larchmont Resources LLC | 12-8-16 | 15 | $ | 4,978 | $ | 4,905 | ||||||||||||||
Maritime Finance Co. Ltd. | 9-19-13 | 1,750 | 30,173 | 17,640 | ||||||||||||||||
New Cotai Participation Corp., Class B | 4-12-13 | — | * | 649 | 354 | |||||||||||||||
Pinnacle Agriculture Enterprises LLC | 3-10-17 | 37,029 | 16,830 | 23,328 | ||||||||||||||||
Sabine Oil & Gas Corp. | 12-7-16 | 4 | 184 | 192 | ||||||||||||||||
Sabine Oil & Gas Corp., expires 12-29-29 | 12-7-16 | 16 | 115 | 103 | ||||||||||||||||
|
| |||||||||||||||||||
$ | 52,929 | $ | 46,522 | |||||||||||||||||
|
|
The | total value of these securities represented 1.0% of net assets at September 30, 2017. |
(D | ) Securities whose value was determined using significant unobservable inputs. |
(E) | Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. |
(F) | 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. |
(G) | Securities were purchased pursuant to an exemption from registration available under Rule 144A under the Securities Act of 1933 and may only be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2017 the total value of these securities amounted to $2,274,752 or 51.6% of net assets. |
(H) | Principal amounts are denominated in the indicated foreign currency, where applicable (EUR—Euro). |
(I) | Zero coupon bond. |
(J) | Payment-in-kind bond which may pay interest in additional par and/or in cash. Rates shown are the current rate and possible payment rates. |
(K) | Step bond that pays an initial coupon rate for the first period and then a higher or lower coupon rate for the following periods. Interest rate disclosed is that which is in effect at September 30, 2017. |
(L) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description. |
(M) | Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy. |
(N) | All or a portion of this position has not settled. Full contract rates do not take effect until settlement date. |
(O) | Rate shown is the yield to maturity at September 30, 2017. |
(P) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
(Q) | Cash of $160 has been pledged as collateral for OTC foreign forward currency contracts. |
(R) | Affiliate security. |
The following forward foreign currency contracts were outstanding at September 30, 2017:
Currency to be Delivered | Currency to be Received | Settlement Date | Counterparty | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||||||
Canadian Dollar | 23,421 | U.S. Dollar | 18,616 | 10-5-17 | Morgan Stanley International | $ | — | $ | 154 | |||||||||||||||||
Euro | 16,936 | U.S. Dollar | 20,042 | 10-5-17 | Morgan Stanley International | 23 | — | |||||||||||||||||||
|
| |||||||||||||||||||||||||
$ | 23 | $ | 154 | |||||||||||||||||||||||
|
|
66 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (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, 2017. 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 | $ | 66,140 | $ | — | $ | 354 | ||||||
Energy | 10,508 | 5,097 | — | |||||||||
Financials | — | — | 17,640 | |||||||||
Total Common Stocks | $ | 76,648 | $ | 5,097 | $ | 17,994 | ||||||
Preferred Stocks | 3,762 | — | 23,328 | |||||||||
Warrants | — | 230 | — | * | ||||||||
Corporate Debt Securities | — | 3,079,509 | — | * | ||||||||
Loans | — | 724,843 | 197,628 | |||||||||
Short-Term Securities | — | 231,419 | — | |||||||||
Total | $ | 80,410 | $ | 4,041,098 | $ | 238,950 | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 23 | $ | — | ||||||
Liabilities | ||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 154 | $ | — |
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
Common Stocks | Preferred Stocks | Warrants | Corporate Debt | Loans | ||||||||||||||||
Beginning Balance 4—1—17 | $ | 18,574 | $ | 16,830 | $ | — | * | $ | — | * | $ | 259,431 | ||||||||
Net realized gain (loss) | — | — | — | — | 1,970 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | (580 | ) | 6,498 | — | — | (40,045 | ) | |||||||||||||
Purchases | — | — | — | — | — | |||||||||||||||
Sales | — | — | — | — | (134,800 | ) | ||||||||||||||
Amortization/Accretion of premium/discount | — | — | — | — | 298 | |||||||||||||||
Transfers into Level 3 during the period | — | — | — | — | 131,729 | |||||||||||||||
Transfers out of Level 3 during the period | — | — | — | — | (20,955 | ) | ||||||||||||||
Ending Balance 9—30—17 | $ | 17,994 | $ | 23,328 | $ | — | * | $ | — | * | $ | 197,628 | ||||||||
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9—30—17 | $ | (580 | ) | $ | 6,498 | $ | — | $ | — | $ | 1,682 |
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, 2017, there were no transfers between Levels 1 and 2.
2017 | SEMIANNUAL REPORT | 67 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Information about Level 3 fair value measurements:
Fair Value at 9-30-17 | Valuation Technique(s) | Unobservable Input(s) | Input value(s) | |||||||||
Assets | ||||||||||||
Common Stocks | $ | 354 | Market comparable approach | Adjusted revenue multiple | 7.53x | |||||||
Illiquidity discount | 10% | |||||||||||
17,640 | Third-party valuation service | Broker quotes | N/A | |||||||||
Preferred Stocks | 23,328 | Market comparable approach | Adjusted EBITDA multiple | 8.52x | ||||||||
Warrants | — | * | Third-party valuation service | Broker quotes | N/A | |||||||
Corporate Debt | — | * | Third-party valuation service | Broker quotes | N/A | |||||||
Loans | 197,628 | Third-party valuation service | Broker quotes | N/A |
Significant increases (decreases) in the adjusted revenue multiple and adjusted EBITDA multiple inputs could result in a higher (lower) fair value measurement. However, significant increases (decreases) in the illiquidity discount input could result in a lower (higher) fair value measurement.
The following acronyms are used throughout this schedule:
GTD = Guaranteed
ICE = Intercontinental Exchange
LIBOR = London Interbank Offered Rate
OTC = Over the Counter
PIK = Payment In Kind
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
68 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY INTERNATIONAL CORE EQUITY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 95.2% | |||
Financials | 17.9% | |||
Industrials | 15.8% | |||
Consumer Discretionary | 12.1% | |||
Consumer Staples | 12.1% | |||
Energy | 10.4% | |||
Health Care | 7.0% | |||
Information Technology | 6.6% | |||
Materials | 6.3% | |||
Telecommunication Services | 6.0% | |||
Real Estate | 1.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 4.8% |
Lipper Rankings
Category: International Large-Cap Core Funds | Rank | Percentile | ||||
1 Year | 62/93 | 66 | ||||
3 Year | 27/71 | 38 | ||||
5 Year | 5/66 | 8 | ||||
10 Year | 5/49 | 10 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
Europe | 58.7% | |||
United Kingdom | 14.7% | |||
France | 13.0% | |||
Germany | 11.5% | |||
Switzerland | 7.6% | |||
Netherlands | 4.4% | |||
Other Europe | 7.5% | |||
Pacific Basin | 30.3% | |||
Japan | 17.3% | |||
China | 4.8% | |||
Australia | 4.2% | |||
Other Pacific Basin | 4.0% | |||
North America | 4.0% | |||
Canada | 4.0% | |||
South America | 2.2% | |||
Cash and Other Assets (Net of Liabilities),and Cash Equivalents+ | 4.8% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Westpac Banking Corp. | Australia | Financials | Diversified Banks | |||
Total S.A. | France | Energy | Integrated Oil & Gas | |||
Bayer AG | Germany | Health Care | Pharmaceuticals | |||
Koninklijke Ahold Delhaize N.V. | Netherlands | Consumer Staples | Food Retail | |||
Isuzu Motors Ltd. | Japan | Consumer Discretionary | Automobile Manufacturers | |||
Alibaba Group Holding Ltd. ADR | China | Information Technology | Internet Software & Services | |||
Danone S.A. | France | Consumer Staples | Packaged Foods & Meats | |||
Orange S.A. | France | Telecommunication Services | Integrated Telecommunication Services | |||
Nestle S.A., Registered Shares | Switzerland | Consumer Staples | Packaged Foods & Meats | |||
Ferguson plc | Switzerland | Industrials | Trading Companies & Distributors |
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. |
2017 | SEMIANNUAL REPORT | 69 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY INTERNATIONAL CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Australia | ||||||||
Energy – 1.1% |
| |||||||
Oil Search Ltd. | 13,524 | $ | 74,259 | |||||
|
| |||||||
Financials – 2.7% |
| |||||||
Westpac Banking Corp. | 7,135 | 178,654 | ||||||
|
| |||||||
Industrials – 0.4% |
| |||||||
Brambles Ltd. | 4,002 | 28,251 | ||||||
|
| |||||||
Total Australia – 4.2% |
| 281,164 | ||||||
Brazil |
| |||||||
Information Technology – 1.1% |
| |||||||
MercadoLibre, Inc. | 276 | 71,574 | ||||||
|
| |||||||
Telecommunication Services – 1.1% |
| |||||||
Telefonica Brasil S.A. | 1,920 | 30,525 | ||||||
Vivo Participacoes S.A. ADR (B) | 2,567 | 40,659 | ||||||
|
| |||||||
71,184 | ||||||||
|
| |||||||
Total Brazil – 2.2% |
| 142,758 | ||||||
Canada |
| |||||||
Consumer Discretionary – 1.6% |
| |||||||
Magna International, Inc. | 2,086 | 111,308 | ||||||
|
| |||||||
Energy – 2.4% |
| |||||||
Seven Generations Energy Ltd., Class A (A) | 4,745 | 75,070 | ||||||
Suncor Energy, Inc. | 2,548 | 89,310 | ||||||
|
| |||||||
164,380 | ||||||||
|
| |||||||
Total Canada – 4.0% |
| 275,688 | ||||||
China |
| |||||||
Consumer Discretionary – 1.1% |
| |||||||
JD.com, Inc. ADR (A)(B) | 1,979 | 75,594 | ||||||
|
| |||||||
Consumer Staples – 1.1% |
| |||||||
Wuliangye Yibin Co. Ltd., A Shares | 8,304 | 71,603 | ||||||
|
| |||||||
Industrials – 0.7% |
| |||||||
China Communications Construction Co. Ltd., H Shares | 36,306 | 45,315 | ||||||
|
| |||||||
Information Technology – 1.9% |
| |||||||
Alibaba Group Holding Ltd. ADR (A)(B) | 740 | 127,857 | ||||||
|
| |||||||
Total China – 4.8% |
| 320,369 | ||||||
France |
| |||||||
Consumer Staples – 1.8% |
| |||||||
Danone S.A. | 1,603 | 125,748 | ||||||
|
| |||||||
Energy – 2.3% |
| |||||||
Total S.A. | 2,938 | 157,825 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Financials – 1.4% |
| |||||||
Axa S.A. | 3,210 | $ | 97,079 | |||||
|
| |||||||
Industrials – 4.3% |
| |||||||
Airbus SE | 1,095 | 104,038 | ||||||
Schneider Electric S.A. | 898 | 78,112 | ||||||
Vinci | 1,173 | 111,501 | ||||||
|
| |||||||
293,651 | ||||||||
|
| |||||||
Materials – 1.4% |
| |||||||
L Air Liquide S.A. | 734 | 97,846 | ||||||
|
| |||||||
Telecommunication Services – 1.8% |
| |||||||
Orange S.A. | 7,510 | 123,015 | ||||||
|
| |||||||
Total France – 13.0% |
| 895,164 | ||||||
Germany |
| |||||||
Consumer Discretionary – 2.3% |
| |||||||
Continental AG | 344 | 87,311 | ||||||
ProSiebenSat. 1 Media SE | 1,900 | 64,763 | ||||||
|
| |||||||
152,074 | ||||||||
|
| |||||||
Financials – 1.4% |
| |||||||
Deutsche Boerse AG | 883 | 95,711 | ||||||
|
| |||||||
Health Care – 4.0% |
| |||||||
Bayer AG | 1,135 | 154,625 | ||||||
Fresenius Medical Care AG & Co. KGaA | 1,156 | 113,096 | ||||||
|
| |||||||
267,721 | ||||||||
|
| |||||||
Industrials – 1.2% |
| |||||||
Siemens AG | 581 | 81,909 | ||||||
|
| |||||||
Information Technology – 1.3% |
| |||||||
SAP AG | 847 | 92,783 | ||||||
|
| |||||||
Materials – 1.3% |
| |||||||
HeidelbergCement AG | 840 | 86,312 | ||||||
|
| |||||||
Total Germany – 11.5% |
| 776,510 | ||||||
Hong Kong |
| |||||||
Financials – 1.3% |
| |||||||
AIA Group Ltd. | 12,150 | 89,593 | ||||||
|
| |||||||
Real Estate – 1.0% |
| |||||||
Cheung Kong (Holdings) Ltd. | 5,221 | 66,739 | ||||||
|
| |||||||
Total Hong Kong – 2.3% |
| 156,332 | ||||||
India |
| |||||||
Financials – 0.5% |
| |||||||
Axis Bank Ltd. | 4,177 | 32,559 | ||||||
|
| |||||||
Total India – 0.5% |
| 32,559 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Ireland |
| |||||||
Health Care – 1.3% |
| |||||||
Shire Pharmaceuticals Group plc ADR (B) | 586 | $ | 89,785 | |||||
|
| |||||||
Materials – 1.7% |
| |||||||
CRH plc | 2,678 | 101,813 | ||||||
James Hardie Industries plc, Class C | 850 | 11,817 | ||||||
|
| |||||||
113,630 | ||||||||
|
| |||||||
Total Ireland – 3.0% |
| 203,415 | ||||||
Japan |
| |||||||
Consumer Discretionary – 5.7% |
| |||||||
Bridgestone Corp. | 2,276 | 103,282 | ||||||
Fuji Heavy Industries Ltd. | 3,061 | 110,451 | ||||||
Isuzu Motors Ltd. | 10,462 | 138,627 | ||||||
Nissin Kogyo Co. Ltd. | 1,831 | 32,755 | ||||||
|
| |||||||
385,115 | ||||||||
|
| |||||||
Consumer Staples – 0.7% |
| |||||||
Calbee, Inc. | 1,388 | 48,771 | ||||||
|
| |||||||
Energy – 1.3% |
| |||||||
Inpex Corp. | 8,496 | 90,261 | ||||||
|
| |||||||
Financials – 2.2% |
| |||||||
Kabushiki Kaisha Mitsubishi Tokyo Financial Group | 11,668 | 75,770 | ||||||
Tokio Marine Holdings, Inc. | 1,934 | 75,655 | ||||||
|
| |||||||
151,425 | ||||||||
|
| |||||||
Industrials – 3.2% |
| |||||||
Komatsu Ltd. | 2,712 | 77,148 | ||||||
Seibu Holdings, Inc. | 3,710 | 63,364 | ||||||
SMC Corp. | 231 | 81,479 | ||||||
|
| |||||||
221,991 | ||||||||
|
| |||||||
Information Technology – 1.1% |
| |||||||
Yahoo Japan Corp. | 16,160 | 76,687 | ||||||
|
| |||||||
Telecommunication Services – 3.1% |
| |||||||
Nippon Telegraph and Telephone Corp. | 2,372 | 108,708 | ||||||
SoftBank Group Corp. | 1,314 | 106,086 | ||||||
|
| |||||||
214,794 | ||||||||
|
| |||||||
Total Japan – 17.3% |
| 1,189,044 | ||||||
Luxembourg |
| |||||||
Energy – 1.0% |
| |||||||
Tenaris S.A. | 2,420 | 34,329 | ||||||
Tenaris S.A. ADR | 1,036 | 29,315 | ||||||
|
| |||||||
63,644 | ||||||||
|
| |||||||
Total Luxembourg – 1.0% |
| 63,644 |
70 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY INTERNATIONAL CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS (Continued) | Shares | Value | ||||||
Netherlands |
| |||||||
Consumer Staples – 2.1% |
| |||||||
Koninklijke Ahold Delhaize N.V. | 7,449 | $ | 139,276 | |||||
|
| |||||||
Energy – 0.8% |
| |||||||
Royal Dutch Petroleum Co., New York Shares (B) | 856 | 51,830 | ||||||
|
| |||||||
Financials – 1.5% |
| |||||||
ING Groep N.V., Certicaaten Van Aandelen | 5,332 | 98,301 | ||||||
|
| |||||||
Total Netherlands – 4.4% |
| 289,407 | ||||||
Norway |
| |||||||
Financials – 1.5% |
| |||||||
DNB ASA | 5,142 | 103,623 | ||||||
|
| |||||||
Total Norway – 1.5% |
| 103,623 | ||||||
South Korea |
| |||||||
Information Technology – 1.2% |
| |||||||
Samsung Electronics Co. Ltd. | 36 | 81,394 | ||||||
|
| |||||||
Total South Korea – 1.2% |
| 81,394 | ||||||
Spain |
| |||||||
Industrials – 0.5% |
| |||||||
ACS Actividades de Construccion y Servicios S.A. | 946 | 35,062 | ||||||
|
| |||||||
Total Spain – 0.5% |
| 35,062 | ||||||
Sweden |
| |||||||
Financials – 1.5% |
| |||||||
Swedbank AB | 3,756 | 103,851 | ||||||
|
| |||||||
Total Sweden – 1.5% |
| 103,851 | ||||||
Switzerland |
| |||||||
Consumer Staples – 1.8% |
| |||||||
Nestle S.A., Registered Shares | 1,429 | 119,638 | ||||||
|
| |||||||
Financials – 1.5% |
| |||||||
UBS Group AG | 5,748 | 98,242 | ||||||
|
| |||||||
Health Care – 1.1% |
| |||||||
Roche Holdings AG, Genusscheine | 289 | 73,776 | ||||||
|
| |||||||
Industrials – 3.2% |
| |||||||
Adecco S.A. | 1,262 | 98,254 | ||||||
Ferguson plc | 1,731 | 113,578 | ||||||
|
| |||||||
211,832 | ||||||||
|
| |||||||
Total Switzerland – 7.6% |
| 503,488 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United Kingdom |
| |||||||
Consumer Discretionary – 1.4% |
| |||||||
Kingfisher plc | 10,520 | $ | 42,080 | |||||
Whitbread plc | 1,145 | 57,782 | ||||||
|
| |||||||
99,862 | ||||||||
|
| |||||||
Consumer Staples – 4.6% |
| |||||||
British American Tobacco plc | 1,291 | 80,812 | ||||||
Imperial Tobacco Group plc | 1,965 | 83,844 | ||||||
Reckitt Benckiser Group plc | 826 | 75,372 | ||||||
Unilever plc | 1,253 | 72,509 | ||||||
|
| |||||||
312,537 | ||||||||
|
| |||||||
Energy – 1.5% |
| |||||||
Royal Dutch Shell plc, Class A | 3,388 | 102,381 | ||||||
|
| |||||||
Financials – 2.4% |
| |||||||
Prudential plc | 3,303 | 79,079 | ||||||
Standard Chartered plc | 8,311 | 82,372 | ||||||
|
| |||||||
161,451 | ||||||||
|
| |||||||
Health Care – 0.6% |
| |||||||
Shire plc | 805 | 40,846 | ||||||
|
| |||||||
Industrials – 2.3% |
| |||||||
Babcock International Group plc | 6,735 | 74,686 | ||||||
BAE Systems plc | 9,232 | 78,124 | ||||||
|
| |||||||
152,810 | ||||||||
|
| |||||||
Materials – 1.9% |
| |||||||
Rio Tinto plc | 2,056 | 95,673 | ||||||
Rio Tinto plc ADR (B) | 745 | 35,175 | ||||||
|
| |||||||
130,848 | ||||||||
|
| |||||||
Total United Kingdom – 14.7% |
| 1,000,735 | ||||||
TOTAL COMMON STOCKS – 95.2% |
| $ | 6,454,207 | |||||
(Cost: $5,627,209) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (C) – 2.6% |
| |||||||
BorgWarner, Inc. | ||||||||
1.380%, 10–5–17 | $ | 10,000 | 9,998 | |||||
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.) | ||||||||
1.180%, 10–5–17 | 10,000 | 9,998 | ||||||
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.) | ||||||||
1.580%, 10–10–17 | 5,000 | 4,998 | ||||||
Corporacion Andina de Fomento | ||||||||
1.250%, 10–2–17 | 1,314 | 1,314 | ||||||
E.I. du Pont de Nemours and Co. | ||||||||
1.460%, 10–19–17 | 444 | 444 | ||||||
Essilor International S.A. | ||||||||
1.240%, 11–14–17 | 4,000 | 3,994 | ||||||
General Mills, Inc. | ||||||||
1.470%, 10–16–17 | 15,000 | 14,990 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (C) (Continued) |
| |||||||
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.) | ||||||||
1.251%, 10–5–17 | $ | 7,495 | $ | 7,493 | ||||
J.M. Smucker Co. (The) | ||||||||
1.371%, 10–6–17 | 15,000 | 14,996 | ||||||
John Deere Canada ULC (GTD by Deere & Co.) | ||||||||
1.190%, 10–23–17 | 10,000 | 9,992 | ||||||
Medtronic Global Holdings SCA: |
| |||||||
1.231%, 10–2–17 | 10,000 | 9,999 | ||||||
1.230%, 10–4–17 | 1,000 | 1,000 | ||||||
1.580%, 10–10–17 | 15,000 | 14,993 | ||||||
Northern Illinois Gas Co. | ||||||||
1.250%, 10–2–17 | 4,903 | 4,902 | ||||||
Rockwell Automation, Inc.: | ||||||||
1.240%, 10–3–17 | 10,000 | 9,999 | ||||||
1.200%, 10–5–17 | 8,000 | 7,998 | ||||||
Sonoco Products Co. | ||||||||
1.330%, 10–2–17 | 6,200 | 6,199 | ||||||
United Technologies Corp. | ||||||||
1.430%, 11–7–17 | 11,000 | 10,983 | ||||||
Virginia Electric and Power Co. | ||||||||
1.560%, 10–12–17 | 10,000 | 9,995 | ||||||
Walgreens Boots Alliance, Inc.: | ||||||||
1.300%, 10–4–17 | 4,000 | 3,999 | ||||||
1.490%, 10–12–17 | 17,000 | 16,992 | ||||||
Wisconsin Gas LLC | ||||||||
1.180%, 10–5–17 | 3,765 | 3,764 | ||||||
|
| |||||||
179,040 | ||||||||
|
| |||||||
Master Note – 0.1% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) | ||||||||
1.450%, 10–4–17 (D) | 4,085 | 4,085 | ||||||
|
| |||||||
Municipal Obligations – 0.4% |
| |||||||
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.) (BVAL plus 7 bps) | ||||||||
0.890%, 10–7–17 (D) | 11,025 | 11,025 | ||||||
LA Pub Fac Auth, Var Rate Rev Rfdg Bonds (CHRISTUS Hlth), Ser 2009B-1 (GTD by Bank of New York Mellon (The)) (BVAL plus 25 bps) | ||||||||
0.930%, 10–7–17 (D) | 4,505 | 4,505 | ||||||
NY Hsng Fin Agy, Related-Caroline Apt Hsng Rev Bonds, Ser 2008A (GTD by FHLMC) (BVAL plus 17 bps) | ||||||||
1.050%, 10–7–17 (D) | 8,900 | 8,900 | ||||||
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.) (BVAL plus 20 bps) | ||||||||
1.250%, 10–7–17 (D) | 3,000 | 3,000 | ||||||
|
| |||||||
27,430 | ||||||||
|
|
2017 | SEMIANNUAL REPORT | 71 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY INTERNATIONAL CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
United States Government Agency Obligations – 0.3% |
| |||||||
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate) | ||||||||
1.130%, 10–7–17 (D) | $ | 21,800 | $ | 21,800 | ||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 3.4% |
| $ | 232,355 | |||||
(Cost: $232,371) |
|
Value | ||||
TOTAL INVESTMENT SECURITIES – 98.6% | $ | 6,686,562 | ||
(Cost: $5,859,580) |
| |||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.4% | 92,520 | |||
NET ASSETS – 100.0% | $ | 6,779,082 |
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 $1,535 are held in collateralized accounts for OTC foreign forward currency contracts collateral. |
(C) | Rate shown is the yield to maturity at September 30, 2017. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following forward foreign currency contracts were outstanding at September 30, 2017:
Currency to be Delivered | Currency to be Received | Settlement Date | Counterparty | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||||||
U.S. Dollar | 126,712 | Australian Dollar | 159,702 | 10–5–17 | Deutsche Bank AG | $ | — | $ | 1,444 | |||||||||||||||||
U.S. Dollar | 336,878 | Japanese Yen | 37,941,933 | 10–5–17 | Deutsche Bank AG | 342 | — | |||||||||||||||||||
|
| |||||||||||||||||||||||||
$ | 342 | $ | 1,444 | |||||||||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 6,454,207 | $ | — | $ | — | ||||||
Short-Term Securities | — | 232,355 | — | |||||||||
Total | $ | 6,454,207 | $ | 232,355 | $ | — | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 342 | $ | — | ||||||
Liabilities | ||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 1,444 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are is used throughout this schedule:
ADR = American Depositary Receipts
BVAL = Bloomberg Valuation Municipal AAA Benchmark
FHLMC = Federal Home Loan Mortgage Corp.
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
TB = Treasury Bill
72 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY INTERNATIONAL CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Market Sector Diversification
(as a % of net assets) |
| |||
Financials | 17.9% | |||
Industrials | 15.8% | |||
Consumer Discretionary | 12.1% | |||
Consumer Staples | 12.1% | |||
Energy | 10.4% | |||
Health Care | 7.0% | |||
Information Technology | 6.6% | |||
Materials | 6.3% | |||
Telecommunication Services | 6.0% | |||
Real Estate | 1.0% | |||
Other+ | 4.8% |
+ | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 73 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY LARGE CAP GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 96.4% | |||
Information Technology | 48.0% | |||
Consumer Discretionary | 13.6% | |||
Health Care | 11.4% | |||
Industrials | 10.4% | |||
Financials | 7.1% | |||
Consumer Staples | 3.6% | |||
Energy | 1.4% | |||
Real Estate | 0.9% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 3.6% |
Lipper Rankings
Category: Large-Cap Growth Funds | Rank | Percentile | ||||
1 Year | 309/658 | 47 | ||||
3 Year | 274/592 | 47 | ||||
5 Year | 214/532 | 41 | ||||
10 Year | 260/387 | 68 |
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 | ||
Apple, Inc. | Information Technology | Technology Hardware, Storage & Peripherals | ||
Microsoft Corp. | Information Technology | Systems Software | ||
Home Depot, Inc. (The) | Consumer Discretionary | Home Improvement Retail | ||
Facebook, Inc., Class A | Information Technology | Internet Software & Services | ||
Visa, Inc., Class A | Information Technology | Data Processing & Outsourced Services | ||
Lam Research Corp. | Information Technology | Semiconductor Equipment | ||
Celgene Corp. | Health Care | Biotechnology | ||
PayPal, Inc. | Information Technology | Data Processing & Outsourced Services | ||
Amazon.com, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail |
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. |
74 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LARGE CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Automobile Manufacturers – 2.0% |
| |||||||
Ferrari N.V. | 340 | $ | 37,562 | |||||
|
| |||||||
Cable & Satellite – 1.9% |
| |||||||
Comcast Corp., Class A | 944 | 36,340 | ||||||
|
| |||||||
Home Improvement Retail – 4.1% |
| |||||||
Home Depot, Inc. (The) | 468 | 76,628 | ||||||
|
| |||||||
Internet & Direct Marketing Retail – 5.6% |
| |||||||
Amazon.com, Inc. (A) | 70 | 67,495 | ||||||
priceline.com, Inc. (A) | 20 | 36,433 | ||||||
|
| |||||||
103,928 | ||||||||
|
| |||||||
Total Consumer Discretionary – 13.6% |
| 254,458 | ||||||
Consumer Staples |
| |||||||
Tobacco – 3.6% |
| |||||||
Philip Morris International, Inc. | 606 | 67,261 | ||||||
|
| |||||||
Total Consumer Staples – 3.6% |
| 67,261 | ||||||
Energy |
| |||||||
Oil & Gas Equipment & Services – 1.4% |
| |||||||
Halliburton Co. | 560 | 25,766 | ||||||
|
| |||||||
Total Energy – 1.4% |
| 25,766 | ||||||
Financials |
| |||||||
Financial Exchanges & Data – 4.8% |
| |||||||
CME Group, Inc. | 418 | 56,741 | ||||||
S&P Global, Inc. | 211 | 32,998 | ||||||
|
| |||||||
89,739 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 2.3% |
| |||||||
Charles Schwab Corp. (The) | 993 | 43,421 | ||||||
|
| |||||||
Total Financials – 7.1% |
| 133,160 | ||||||
Health Care |
| |||||||
Biotechnology – 6.4% |
| |||||||
Alexion Pharmaceuticals, Inc. (A) | 106 | 14,814 | ||||||
Celgene Corp. (A) | 501 | 73,025 | ||||||
Vertex Pharmaceuticals, Inc. (A) | 213 | 32,339 | ||||||
|
| |||||||
120,178 | ||||||||
|
| |||||||
Health Care Equipment – 4.4% |
| |||||||
Danaher Corp. | 316 | 27,141 | ||||||
Edwards Lifesciences Corp. (A) | 223 | 24,349 | ||||||
Intuitive Surgical, Inc. (A) | 28 | 29,598 | ||||||
|
| |||||||
81,088 | ||||||||
|
| |||||||
Pharmaceuticals – 0.6% |
| |||||||
Bristol-Myers Squibb Co. | 180 | 11,441 | ||||||
|
| |||||||
Total Health Care – 11.4% |
| 212,707 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Industrials |
| |||||||
Aerospace & Defense – 4.5% |
| |||||||
Lockheed Martin Corp. | 175 | $ | 54,177 | |||||
Northrop Grumman Corp. | 103 | 29,549 | ||||||
|
| |||||||
83,726 | ||||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 2.1% |
| |||||||
Caterpillar, Inc. | 309 | 38,560 | ||||||
|
| |||||||
Electrical Components & Equipment – 0.5% |
| |||||||
Rockwell Automation, Inc. | 56 | 9,909 | ||||||
|
| |||||||
Industrial Machinery – 1.6% |
| |||||||
Parker Hannifin Corp. | 63 | 11,044 | ||||||
Stanley Black & Decker, Inc. | 129 | 19,505 | ||||||
|
| |||||||
30,549 | ||||||||
|
| |||||||
Railroads – 1.7% |
| |||||||
Union Pacific Corp. | 267 | 30,987 | ||||||
|
| |||||||
Total Industrials – 10.4% |
| 193,731 | ||||||
Information Technology |
| |||||||
Application Software – 6.3% |
| |||||||
Adobe Systems, Inc. (A) | 388 | 57,837 | ||||||
salesforce.com, Inc. (A) | 651 | 60,770 | ||||||
|
| |||||||
118,607 | ||||||||
|
| |||||||
Data Processing & Outsourced Services – 13.0% |
| |||||||
FleetCor Technologies, Inc. (A) | 82 | 12,707 | ||||||
MasterCard, Inc., Class A | 623 | 88,024 | ||||||
PayPal, Inc. (A) | 1,056 | 67,590 | ||||||
Visa, Inc., Class A | 704 | 74,110 | ||||||
|
| |||||||
242,431 | ||||||||
|
| |||||||
Home Entertainment Software – 2.7% |
| |||||||
Electronic Arts, Inc. (A) | 420 | 49,621 | ||||||
|
| |||||||
Internet Software & Services – 9.2% |
| |||||||
Alphabet, Inc., Class A (A) | 55 | 53,555 | ||||||
Alphabet, Inc., Class C (A) | 44 | 42,538 | ||||||
Facebook, Inc., Class A (A) | 440 | 75,234 | ||||||
|
| |||||||
171,327 | ||||||||
|
| |||||||
Semiconductor Equipment – 5.2% |
| |||||||
Applied Materials, Inc. | 440 | 22,919 | ||||||
Lam Research Corp. | 396 | 73,336 | ||||||
|
| |||||||
96,255 | ||||||||
|
| |||||||
Semiconductors – 2.8% |
| |||||||
Microchip Technology, Inc. | 576 | 51,718 | ||||||
|
| |||||||
Systems Software – 4.4% |
| |||||||
Microsoft Corp. | 1,103 | 82,148 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – 4.4% |
| |||||||
Apple, Inc. | 538 | $ | 82,867 | |||||
|
| |||||||
Total Information Technology – 48.0% |
| 894,974 | ||||||
Real Estate |
| |||||||
Specialized REITs – 0.9% |
| |||||||
American Tower Corp., Class A | 123 | 16,798 | ||||||
|
| |||||||
Total Real Estate – 0.9% |
| 16,798 | ||||||
TOTAL COMMON STOCKS – 96.4% |
| $ | 1,798,855 | |||||
(Cost: $1,094,322) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (B) – 3.3% |
| |||||||
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.): | ||||||||
1.331%, 10–3–17 | $ | 10,000 | 9,999 | |||||
1.350%, 10–4–17 | 8,500 | 8,498 | ||||||
1.240%, 10–6–17 | 5,000 | 4,999 | ||||||
John Deere Canada ULC (GTD by Deere & Co.), | ||||||||
1.190%, 10–23–17 | 10,000 | 9,992 | ||||||
Kroger Co. (The), | ||||||||
1.300%, 10–2–17 | 3,625 | 3,625 | ||||||
Medtronic Global Holdings SCA, | ||||||||
1.530%, 10–16–17 | 10,000 | 9,993 | ||||||
United Technologies Corp., | ||||||||
1.430%, 11–7–17 | 9,100 | 9,086 | ||||||
Virginia Electric and Power Co., | ||||||||
1.560%, 10–12–17 | 5,000 | 4,997 | ||||||
|
| |||||||
61,189 | ||||||||
|
| |||||||
Master Note – 0.0% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (C) | 2 | 2 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 3.3% |
| $ | 61,191 | |||||
(Cost: $61,197) |
| |||||||
TOTAL INVESTMENT SECURITIES – 99.7% |
| $ | 1,860,046 | |||||
(Cost: $1,155,519) |
| |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3% |
| 5,877 | ||||||
NET ASSETS – 100.0% |
| $ | 1,865,923 |
2017 | SEMIANNUAL REPORT | 75 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LARGE CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Notes to Schedule of Investments
(A) | No dividends were paid during the preceding 12 months. |
(B) | Rate shown is the yield to maturity at September 30, 2017. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 1,798,855 | $ | — | $ | — | ||||||
Short-Term Securities | — | 61,191 | — | |||||||||
Total | $ | 1,798,855 | $ | 61,191 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
76 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY LIMITED-TERM BOND FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Bonds | 97.6% | |||
Corporate Debt Securities | 72.3% | |||
United States Government and Government Agency Obligations | 20.7% | |||
Municipal Bonds – Taxable | 2.7% | |||
Asset-Backed Securities | 1.3% | |||
Mortgage-Backed Securities | 0.6% | |||
Cash and Other Assets (Net of Liabilities), | 2.4% |
Lipper Rankings
Category: Short-Intermediate Investment Grade Debt Funds | Rank | Percentile | ||||
1 Year | 107/176 | 61 | ||||
3 Year | 93/160 | 58 | ||||
5 Year | 92/132 | 70 | ||||
10 Year | 51/82 | 62 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Quality Weightings
Investment Grade | 94.3% | |||
AAA | 1.8% | |||
AA | 26.2% | |||
A | 28.8% | |||
BBB | 37.5% | |||
Non-Investment Grade | 3.3% | |||
BB | 1.2% | |||
Non-rated | 2.1% | |||
Cash and Other Assets (Net of Liabilities), | 2.4% |
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. For securities not rated by Moody’s, ratings are obtained from Fitch. 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. |
2017 | SEMIANNUAL REPORT | 77 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
ASSET-BACKED SECURITIES | Principal | Value | ||||||
American Airlines Class AA Pass Through Certificates, Series 2016-2, | ||||||||
3.200%, 6–15–28 | $ | 4,870 | $ | 4,872 | ||||
SBA Tower Trust, Series 2013-1C (GTD by SBA Guarantor LLC and SBA Holdings LLC), | ||||||||
2.240%, 4–10–18 (A) | 8,035 | 8,032 | ||||||
SBA Tower Trust, Series 2016-1 (GTD by SBA Guarantor LLC and SBA Holdings LLC), | ||||||||
2.877%, 7–9–21 (A) | 5,500 | 5,573 | ||||||
|
| |||||||
TOTAL ASSET-BACKED SECURITIES – 1.3% |
| $ | 18,477 | |||||
(Cost: $18,419) | ||||||||
CORPORATE DEBT SECURITIES | ||||||||
Consumer Discretionary |
| |||||||
Auto Parts & Equipment – 0.2% |
| |||||||
Lear Corp., | ||||||||
5.375%, 3–15–24 | 2,675 | 2,850 | ||||||
|
| |||||||
Automobile Manufacturers – 1.0% |
| |||||||
General Motors Co., | ||||||||
4.875%, 10–2–23 | 8,500 | 9,190 | ||||||
Toyota Motor Credit Corp., | ||||||||
2.000%, 10–24–18 | 5,125 | 5,149 | ||||||
|
| |||||||
14,339 | ||||||||
|
| |||||||
Broadcasting – 0.1% |
| |||||||
Discovery Communications LLC, | ||||||||
2.200%, 9–20–19 | 2,000 | 2,006 | ||||||
|
| |||||||
Cable & Satellite – 0.6% |
| |||||||
Comcast Corp. (GTD by Comcast Cable Communications and NBCUniversal), | ||||||||
1.625%, 1–15–22 | 3,950 | 3,849 | ||||||
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc., | ||||||||
5.875%, 10–1–19 | 1,000 | 1,074 | ||||||
Time Warner Co., Inc. (GTD by Time Warner, Inc.), | ||||||||
7.250%, 10–15–17 | 4,000 | 4,008 | ||||||
|
| |||||||
8,931 | ||||||||
|
| |||||||
General Merchandise Stores – 1.2% |
| |||||||
Dollar General Corp., | ||||||||
1.875%, 4–15–18 | 3,000 | 3,003 | ||||||
Family Dollar Stores, Inc., | ||||||||
5.000%, 2–1–21 | 12,859 | 13,791 | ||||||
|
| |||||||
16,794 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail – 0.6% |
| |||||||
Amazon.com, Inc., | ||||||||
1.200%, 11–29–17 | 8,000 | 7,999 | ||||||
|
| |||||||
Total Consumer Discretionary – 3.7% |
| 52,919 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Consumer Staples |
| |||||||
Brewers – 0.3% |
| |||||||
Molson Coors Brewing Co.: | ||||||||
1.900%, 3–15–19 (A) | $ | 2,070 | $ | 2,067 | ||||
2.250%, 3–15–20 (A) | 2,750 | 2,748 | ||||||
|
| |||||||
4,815 | ||||||||
|
| |||||||
Distillers & Vintners – 0.9% |
| |||||||
Beam, Inc., | ||||||||
1.750%, 6–15–18 | 10,000 | 9,985 | ||||||
Constellation Brands, Inc., | ||||||||
2.700%, 5–9–22 | 2,400 | 2,408 | ||||||
|
| |||||||
12,393 | ||||||||
|
| |||||||
Drug Retail – 0.6% |
| |||||||
CVS Health Corp., | ||||||||
2.250%, 12–5–18 | 9,000 | 9,040 | ||||||
|
| |||||||
Food Retail – 0.4% |
| |||||||
Kroger Co. (The), | ||||||||
1.500%, 9–30–19 | 5,250 | 5,188 | ||||||
|
| |||||||
Packaged Foods & Meats – 0.6% |
| |||||||
Smithfield Foods, Inc., | ||||||||
2.700%, 1–31–20 (A) | 8,000 | 8,023 | ||||||
|
| |||||||
Soft Drinks – 0.1% |
| |||||||
PepsiCo, Inc., | ||||||||
3.100%, 7–17–22 | 2,082 | 2,160 | ||||||
|
| |||||||
Total Consumer Staples – 2.9% |
| 41,619 | ||||||
Energy |
| |||||||
Integrated Oil & Gas – 0.2% |
| |||||||
Statoil ASA (GTD by Statoil Petroleum AS), | ||||||||
1.950%, 11–8–18 | 3,500 | 3,509 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 0.6% |
| |||||||
Enterprise Products Operating LLC (GTD by Enterprise Products Partners L.P.), | ||||||||
6.500%, 1–31–19 | 8,250 | 8,730 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 2.3% |
| |||||||
Aker BP ASA, | ||||||||
6.000%, 7–1–22 (A) | 2,360 | 2,454 | ||||||
BP Capital Markets plc (GTD by BP plc), | ||||||||
1.674%, 2–13–18 | 13,500 | 13,510 | ||||||
EQT Corp.: | ||||||||
8.125%, 6–1–19 | 11,520 | 12,640 | ||||||
2.500%, 10–1–20 | 4,000 | 4,014 | ||||||
|
| |||||||
32,618 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 2.2% |
| |||||||
Enbridge, Inc., | ||||||||
2.900%, 7–15–22 | 1,500 | 1,508 | ||||||
Kinder Morgan Energy Partners L.P.: | ||||||||
3.500%, 3–1–21 | 6,000 | 6,147 | ||||||
3.450%, 2–15–23 | 6,590 | 6,662 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Oil & Gas Storage & Transportation (Continued) |
| |||||||
Plains All American Pipeline L.P. and PAA Finance Corp.: | ||||||||
8.750%, 5–1–19 | $ | 1,000 | $ | 1,093 | ||||
3.850%, 10–15–23 | 8,200 | 8,229 | ||||||
Spectra Energy Partners L.P., | ||||||||
2.950%, 9–25–18 | 2,000 | 2,020 | ||||||
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.), | ||||||||
4.400%, 4–1–21 | 5,700 | 6,012 | ||||||
|
| |||||||
31,671 | ||||||||
|
| |||||||
Total Energy – 5.3% |
| 76,528 | ||||||
Financials | ||||||||
Asset Management & Custody Banks – 0.5% |
| |||||||
Ares Capital Corp., | ||||||||
3.875%, 1–15–20 | 7,280 | 7,463 | ||||||
|
| |||||||
Consumer Finance – 6.3% |
| |||||||
Ally Financial, Inc., | ||||||||
4.125%, 3–30–20 | 5,260 | 5,418 | ||||||
American Express Co., | ||||||||
7.000%, 3–19–18 | 10,000 | 10,246 | ||||||
American Honda Finance Corp., | ||||||||
7.625%, 10–1–18 (A) | 5,000 | 5,295 | ||||||
Discover Financial Services, | ||||||||
3.950%, 11–6–24 | 8,650 | 8,852 | ||||||
Ford Motor Credit Co. LLC: | ||||||||
5.000%, 5–15–18 | 10,000 | 10,197 | ||||||
2.681%, 1–9–20 | 3,700 | 3,732 | ||||||
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.): | ||||||||
2.400%, 5–9–19 | 5,115 | 5,137 | ||||||
3.500%, 7–10–19 | 4,500 | 4,608 | ||||||
3.200%, 7–6–21 | 6,500 | 6,613 | ||||||
Hyundai Capital America, | ||||||||
2.875%, 8–9–18 (A) | 5,525 | 5,554 | ||||||
Synchrony Financial, | ||||||||
2.600%, 1–15–19 | 15,770 | 15,870 | ||||||
Synchrony Financial (3-Month U.S. LIBOR plus 140 bps), | ||||||||
2.711%, 11–9–17 (B) | 9,850 | 9,860 | ||||||
|
| |||||||
91,382 | ||||||||
|
| |||||||
Diversified Banks – 9.4% |
| |||||||
ABN AMRO Bank N.V., | ||||||||
2.100%, 1–18–19 (A) | 8,000 | 8,025 | ||||||
Bank of America Corp.: | ||||||||
2.625%, 4–19–21 | 3,500 | 3,526 | ||||||
3.124%, 1–20–23 | 12,000 | 12,184 | ||||||
4.100%, 7–24–23 | 6,850 | 7,291 | ||||||
Bank of New York Mellon Corp. (The), | ||||||||
2.300%, 9–11–19 | 12,750 | 12,847 | ||||||
BB&T Corp., | ||||||||
2.050%, 5–10–21 | 6,500 | 6,472 | ||||||
Branch Banking and Trust Co., | ||||||||
1.450%, 5–10–19 | 10,875 | 10,812 |
78 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Diversified Banks (Continued) |
| |||||||
KeyBank N.A., | ||||||||
2.300%, 9–14–22 | $ | 7,000 | $ | 6,934 | ||||
Mitsubishi UFJ Financial Group, Inc., | ||||||||
2.998%, 2–22–22 | 2,000 | 2,027 | ||||||
Mizuho Financial Group, Inc., | ||||||||
2.273%, 9–13–21 | 9,400 | 9,256 | ||||||
Northern Trust Corp., | ||||||||
2.375%, 8–2–22 | 18,875 | 18,978 | ||||||
Northgroup Preferred Capital Corp., | ||||||||
6.378%, 10–15–65 (A) | 13,710 | 13,743 | ||||||
Wachovia Corp., | ||||||||
5.750%, 2–1–18 | 13,500 | 13,687 | ||||||
Wells Fargo & Co.: | ||||||||
3.069%, 1–24–23 | 6,500 | 6,610 | ||||||
3.000%, 2–19–25 | 4,000 | 3,970 | ||||||
|
| |||||||
136,362 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 4.1% |
| |||||||
Daiwa Securities Group, Inc., | ||||||||
3.129%, 4–19–22 (A) | 12,000 | 12,133 | ||||||
Goldman Sachs Group, Inc. (The): | ||||||||
2.600%, 12–27–20 | 16,000 | 16,119 | ||||||
2.350%, 11–15–21 | 6,700 | 6,648 | ||||||
3.000%, 4–26–22 | 4,000 | 4,044 | ||||||
4.000%, 3–3–24 | 4,552 | 4,805 | ||||||
Morgan Stanley: | ||||||||
5.750%, 1–25–21 | 6,000 | 6,624 | ||||||
2.500%, 4–21–21 | 4,000 | 4,012 | ||||||
2.750%, 5–19–22 | 3,000 | 3,011 | ||||||
Morgan Stanley (3-Month U.S. LIBOR plus 110 bps), | ||||||||
3.000%, 5–31–23 (B) | 1,700 | 1,716 | ||||||
|
| |||||||
59,112 | ||||||||
|
| |||||||
Life & Health Insurance – 2.3% |
| |||||||
Athene Global Funding: | ||||||||
2.875%, 10–23–18 (A) | 15,450 | 15,596 | ||||||
2.750%, 4–20–20 (A) | 1,000 | 1,008 | ||||||
New York Life Global Funding, | ||||||||
1.550%, 11–2–18 (A) | 6,500 | 6,493 | ||||||
Principal Life Global Funding II, | ||||||||
2.625%, 11–19–20 (A) | 9,500 | 9,591 | ||||||
|
| |||||||
32,688 | ||||||||
|
| |||||||
Other Diversified Financial Services – 3.9% |
| |||||||
Citigroup, Inc.: | ||||||||
2.650%, 10–26–20 | 9,000 | 9,091 | ||||||
2.700%, 3–30–21 | 5,893 | 5,957 | ||||||
Fidelity National Information Services, Inc., | ||||||||
2.850%, 10–15–18 | 5,000 | 5,058 | ||||||
JPMorgan Chase & Co.: | ||||||||
4.350%, 8–15–21 | 3,820 | 4,091 | ||||||
2.972%, 1–15–23 | 15,500 | 15,735 | ||||||
3.000%, 2–27–30 (C) | 3,390 | 3,254 | ||||||
USAA Capital Corp., | ||||||||
2.450%, 8–1–20 (A) | 13,865 | 13,974 | ||||||
|
| |||||||
57,160 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Property & Casualty Insurance – 2.1% |
| |||||||
ACE INA Holdings, Inc. (GTD by ACE Ltd.), | ||||||||
2.300%, 11–3–20 | $ | 10,500 | $ | 10,575 | ||||
Berkshire Hathaway Finance Corp. (GTD by Berkshire Hathaway, Inc.), | ||||||||
1.700%, 3–15–19 | 4,550 | 4,559 | ||||||
Berkshire Hathaway, Inc.: | ||||||||
2.100%, 8–14–19 | 7,375 | 7,446 | ||||||
2.750%, 3–15–23 | 8,260 | 8,382 | ||||||
|
| |||||||
30,962 | ||||||||
|
| |||||||
Regional Banks – 1.7% |
| |||||||
PNC Bank N.A.: | ||||||||
2.400%, 10–18–19 | 8,985 | 9,062 | ||||||
2.550%, 12–9–21 | 4,000 | 4,032 | ||||||
PNC Funding Corp. (GTD by PNC Financial Services Group, Inc.), | ||||||||
6.700%, 6–10–19 | 3,500 | 3,775 | ||||||
Sumitomo Mitsui Trust Bank Ltd., | ||||||||
2.050%, 3–6–19 (A) | 7,500 | 7,506 | ||||||
|
| |||||||
24,375 | ||||||||
|
| |||||||
Specialized Finance – 1.9% |
| |||||||
ADOP Co., | ||||||||
6.625%, 10–1–17 (A) | 4,000 | 4,000 | ||||||
Diamond 1 Finance Corp. and Diamond 2 Finance Corp., | ||||||||
3.480%, 6–1–19 (A) | 10,625 | 10,828 | ||||||
International Lease Finance Corp., | ||||||||
6.250%, 5–15–19 | 11,500 | 12,222 | ||||||
|
| |||||||
27,050 | ||||||||
|
| |||||||
Total Financials – 32.2% |
| 466,554 | ||||||
Health Care |
| |||||||
Biotechnology – 0.3% |
| |||||||
Amgen, Inc., | ||||||||
2.200%, 5–11–20 | 4,000 | 4,012 | ||||||
|
| |||||||
Health Care Services – 0.2% |
| |||||||
Cardinal Health, Inc., | ||||||||
1.948%, 6–14–19 | 3,550 | 3,553 | ||||||
|
| |||||||
Health Care Supplies – 1.4% |
| |||||||
Abbott Laboratories, | ||||||||
2.350%, 11–22–19 | 5,000 | 5,040 | ||||||
Catholic Health Initiatives, | ||||||||
2.600%, 8–1–18 | 11,871 | 11,956 | ||||||
Stryker Corp., | ||||||||
2.625%, 3–15–21 | 3,025 | 3,060 | ||||||
|
| |||||||
20,056 | ||||||||
|
| |||||||
Managed Health Care – 0.8% |
| |||||||
Aetna, Inc., | ||||||||
1.500%, 11–15–17 | 11,500 | 11,498 | ||||||
|
| |||||||
Pharmaceuticals – 0.5% |
| |||||||
AbbVie, Inc., | ||||||||
2.000%, 11–6–18 | 2,000 | 2,007 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Pharmaceuticals (Continued) |
| |||||||
Merck & Co., Inc., | ||||||||
1.100%, 1–31–18 | $ | 4,925 | $ | 4,923 | ||||
|
| |||||||
6,930 | ||||||||
|
| |||||||
Total Health Care – 3.2% |
| 46,049 | ||||||
Industrials |
| |||||||
Aerospace & Defense – 1.5% |
| |||||||
BAE Systems Holdings, Inc.: | ||||||||
6.375%, 6–1–19 (A) | 10,893 | 11,648 | ||||||
3.850%, 12–15–25 (A) | 5,500 | 5,703 | ||||||
Exelis, Inc., | ||||||||
5.550%, 10–1–21 | 2,566 | 2,840 | ||||||
Northrop Grumman Corp., | ||||||||
3.250%, 8–1–23 | 2,000 | 2,061 | ||||||
|
| |||||||
22,252 | ||||||||
|
| |||||||
Airlines – 1.2% |
| |||||||
Aviation Capital Group Corp.: | ||||||||
2.875%, 9–17–18 (A) | 7,500 | 7,564 | ||||||
2.875%, 1–20–22 (A) | 4,000 | 3,999 | ||||||
Southwest Airlines Co., | ||||||||
2.650%, 11–5–20 | 6,000 | 6,079 | ||||||
|
| |||||||
17,642 | ||||||||
|
| |||||||
Environmental & Facilities Services – 2.1% |
| |||||||
Republic Services, Inc., | ||||||||
3.800%, 5–15–18 | 14,690 | 14,874 | ||||||
Waste Management, Inc. (GTD by Waste Management Holdings, Inc.): | ||||||||
6.100%, 3–15–18 | 10,000 | 10,197 | ||||||
4.750%, 6–30–20 | 1,675 | 1,794 | ||||||
7.100%, 8–1–26 | 2,450 | 3,180 | ||||||
|
| |||||||
30,045 | ||||||||
|
| |||||||
Industrial Conglomerates – 1.1% |
| |||||||
General Electric Capital Corp.: | ||||||||
2.500%, 3–28–20 | 3,150 | 3,182 | ||||||
5.012%, 1–1–24 | 12,060 | 12,621 | ||||||
|
| |||||||
15,803 | ||||||||
|
| |||||||
Total Industrials – 5.9% |
| 85,742 | ||||||
Information Technology |
| |||||||
Communications Equipment – 1.2% |
| |||||||
Cisco Systems, Inc., | ||||||||
2.200%, 2–28–21 | 5,425 | 5,452 | ||||||
Harris Corp.: | ||||||||
1.999%, 4–27–18 | 3,105 | 3,111 | ||||||
2.700%, 4–27–20 | 1,094 | 1,105 | ||||||
L-3 Communications Corp.: | ||||||||
3.950%, 5–28–24 | 4,280 | 4,469 | ||||||
3.850%, 12–15–26 | 2,750 | 2,852 | ||||||
|
| |||||||
16,989 | ||||||||
|
| |||||||
Data Processing & Outsourced Services – 1.9% |
| |||||||
Alliance Data Systems Corp.: | ||||||||
5.250%, 12–1–17 (A) | 6,600 | 6,623 | ||||||
6.375%, 4–1–20 (A) | 6,000 | 6,075 |
2017 | SEMIANNUAL REPORT | 79 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Data Processing & Outsourced Services (Continued) |
| |||||||
Visa, Inc., | ||||||||
2.800%, 12–14–22 | $ | 14,100 | $ | 14,428 | ||||
|
| |||||||
27,126 | ||||||||
|
| |||||||
Electronic Manufacturing Services – 0.4% |
| |||||||
Jabil Circuit, Inc., | ||||||||
8.250%, 3–15–18 | 5,680 | 5,819 | ||||||
|
| |||||||
Home Entertainment Software – 0.3% |
| |||||||
Activision Blizzard, Inc., | ||||||||
2.300%, 9–15–21 | 4,000 | 3,977 | ||||||
|
| |||||||
Semiconductors – 2.4% |
| |||||||
Broadcom Corp. and Broadcom Cayman Finance Ltd. (GTD by Broadcom Ltd.), | ||||||||
2.375%, 1–15–20 (A) | 5,500 | 5,530 | ||||||
Intel Corp.: | ||||||||
1.850%, 5–11–20 | 3,600 | 3,607 | ||||||
2.450%, 7–29–20 | 4,000 | 4,075 | ||||||
2.875%, 5–11–24 | 10,975 | 11,108 | ||||||
QUALCOMM, Inc.: | ||||||||
2.100%, 5–20–20 | 2,000 | 2,015 | ||||||
2.900%, 5–20–24 | 8,000 | 8,028 | ||||||
3.250%, 5–20–27 | 1,000 | 1,008 | ||||||
|
| |||||||
35,371 | ||||||||
|
| |||||||
Systems Software – 2.0% |
| |||||||
CA, Inc., | ||||||||
5.375%, 12–1–19 | 8,297 | 8,822 | ||||||
Microsoft Corp.: | ||||||||
2.000%, 11–3–20 | 8,000 | 8,046 | ||||||
2.875%, 2–6–24 | 12,750 | 13,042 | ||||||
|
| |||||||
29,910 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 1.5% |
| |||||||
Apple, Inc.: | ||||||||
1.550%, 2–7–20 | 13,175 | 13,108 | ||||||
2.500%, 2–9–22 | 8,500 | 8,610 | ||||||
|
| |||||||
21,718 | ||||||||
|
| |||||||
Total Information Technology – 9.7% |
| 140,910 | ||||||
Materials | ||||||||
Diversified Chemicals – 0.5% |
| |||||||
Dow Chemical Co. (The), | ||||||||
4.250%, 11–15–20 | 7,049 | 7,442 | ||||||
|
| |||||||
Diversified Metals & Mining – 0.5% |
| |||||||
Glencore Finance Canada Ltd., | ||||||||
2.700%, 10–25–17 (A)(C) | 7,682 | 7,685 | ||||||
|
| |||||||
Specialty Chemicals – 0.6% |
| |||||||
Methanex Corp., | ||||||||
3.250%, 12–15–19 | 8,632 | 8,710 | ||||||
|
| |||||||
Total Materials – 1.6% |
| 23,837 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Real Estate | ||||||||
Specialized REITs – 0.7% |
| |||||||
Crown Castle International Corp.: | ||||||||
2.250%, 9–1–21 | $ | 3,000 | $ | 2,958 | ||||
4.875%, 4–15–22 | 3,099 | 3,372 | ||||||
5.250%, 1–15–23 | 2,745 | 3,038 | ||||||
|
| |||||||
9,368 | ||||||||
|
| |||||||
Total Real Estate – 0.7% |
| 9,368 | ||||||
Telecommunication Services |
| |||||||
Integrated Telecommunication Services – 1.0% |
| |||||||
AT&T, Inc.: | ||||||||
5.875%, 10–1–19 | 3,900 | 4,190 | ||||||
5.200%, 3–15–20 | 3,000 | 3,214 | ||||||
3.400%, 8–14–24 | 7,265 | 7,273 | ||||||
|
| |||||||
14,677 | ||||||||
|
| |||||||
Wireless Telecommunication Service – 2.3% |
| |||||||
American Tower Corp.: | ||||||||
3.300%, 2–15–21 | 2,500 | 2,561 | ||||||
5.900%, 11–1–21 | 12,200 | 13,684 | ||||||
2.250%, 1–15–22 | 12,500 | 12,294 | ||||||
Crown Castle Towers LLC, | ||||||||
3.222%, 5–15–22 (A) | 4,830 | 4,924 | ||||||
|
| |||||||
33,463 | ||||||||
|
| |||||||
Total Telecommunication Services – 3.3% |
| 48,140 | ||||||
Utilities | ||||||||
Electric Utilities – 3.0% |
| |||||||
CenterPoint Energy, Inc., | ||||||||
2.500%, 9–1–22 | 4,000 | 3,996 | ||||||
Edison International, | ||||||||
2.125%, 4–15–20 | 3,060 | 3,060 | ||||||
Emera U.S. Finance L.P. (GTD by Emera U.S. Holdings, Inc.), | ||||||||
2.150%, 6–15–19 | 4,000 | 4,001 | ||||||
Entergy Mississippi, Inc., | ||||||||
2.850%, 6–1–28 | 5,875 | 5,667 | ||||||
Entergy Texas, Inc., | ||||||||
2.550%, 6–1–21 | 7,225 | 7,171 | ||||||
MidAmerican Energy Co., | ||||||||
3.700%, 9–15–23 | 4,500 | 4,749 | ||||||
National Rural Utilities Cooperative Finance Corp.: | ||||||||
1.650%, 2–8–19 | 3,600 | 3,594 | ||||||
2.400%, 4–25–22 | 7,975 | 8,022 | ||||||
Virginia Electric and Power Co., Series C, | ||||||||
2.750%, 3–15–23 | 3,940 | 3,984 | ||||||
|
| |||||||
44,244 | ||||||||
|
| |||||||
Multi-Utilities – 0.8% |
| |||||||
Dominion Resources, Inc., | ||||||||
6.400%, 6–15–18 | 11,118 | 11,470 | ||||||
|
| |||||||
Total Utilities – 3.8% |
| 55,714 |
CORPORATE DEBT SECURITIES (Continued) | Value | |||||||
TOTAL CORPORATE DEBT SECURITIES – 72.3% |
| $ | 1,047,380 | |||||
(Cost: $1,039,853) | ||||||||
MORTGAGE-BACKED SECURITIES | Principal | |||||||
Non-Agency REMIC/CMO – 0.5% |
| |||||||
Bear Stearns Deutsche Bank Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-AFR1, Class C, | ||||||||
5.097%, 9–15–27 (A) | $ | 2,500 | 2,652 | |||||
CFCRE Commercial Mortgage Trust, Series 2015-RUM, Class B (1-Month U.S. LIBOR plus 215 bps), | ||||||||
3.377%, 7–15–30 (A)(B) | 3,942 | 3,875 | ||||||
|
| |||||||
6,527 | ||||||||
|
| |||||||
Other – 0.1% |
| |||||||
DLJ Commercial Mortgage Corp., Series 1998-CG1, Class B6, | ||||||||
6.300%, 6–10–31 (A) | 1,374 | 1,377 | ||||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES – 0.6% |
| $ | 7,904 | |||||
(Cost: $8,055) | ||||||||
MUNICIPAL BONDS – TAXABLE | ||||||||
California – 1.7% |
| |||||||
Alameda Corridor Trans Auth, Taxable Sr Lien Rev Bonds, Ser 1999C, | ||||||||
6.500%, 10–1–19 | 5,570 | 5,819 | ||||||
CA Various Purp GO Bonds, | ||||||||
7.700%, 11–1–30 | 10,050 | 11,672 | ||||||
The Regents of the Univ of CA, Gen Rev Bonds, Ser 2013AH, | ||||||||
1.796%, 7–1–19 | 7,615 | 7,623 | ||||||
|
| |||||||
25,114 | ||||||||
|
| |||||||
New York – 0.7% |
| |||||||
NYC GO Bonds, Fiscal 2017 Ser A-2, | ||||||||
2.460%, 8–1–26 | 9,920 | 9,533 | ||||||
|
| |||||||
Texas – 0.3% |
| |||||||
Katy Independent Sch Dist (Fort Bend, Harris and Waller Cntys, TX), Unlimited Tax Sch Bldg Bonds, Ser 2010D, | ||||||||
6.349%, 2–15–41 | 4,540 | 4,941 | ||||||
|
| |||||||
TOTAL MUNICIPAL BONDS – TAXABLE – 2.7% |
| $ | 39,588 | |||||
(Cost: $40,304) |
80 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | Principal | Value | ||||||
Agency Obligations – 2.0% |
| |||||||
Federal Home Loan Bank: | ||||||||
2.500%, 4–27–26 | $ | 9,155 | $ | 8,910 | ||||
1.700%, 7–25–31 | 13,500 | 13,246 | ||||||
2.000%, 11–25–31 | 1,000 | 969 | ||||||
U.S. Department of Transportation, | ||||||||
6.001%, 12–7–21 (A) | 5,000 | 5,785 | ||||||
|
| |||||||
28,910 | ||||||||
|
| |||||||
Mortgage-Backed Obligations – 14.9% |
| |||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Year U.S. Treasury index plus 400 bps), | ||||||||
5.045%, 7–25–44 (A)(B) | 5,870 | 5,957 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (5-Year U.S. Treasury index plus 300 bps), | ||||||||
5.341%, 2–25–47 (A)(B) | 6,420 | 6,936 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 1-Month U.S. LIBOR): | ||||||||
4.482%, 6–25–21 (A)(B) | 3,115 | 3,148 | ||||||
5.237%, 9–25–22 (A)(B) | 2,273 | 2,319 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 1-year U.S. Treasury index), | ||||||||
4.301%, 9–25–44 (A)(B) | 8,200 | 8,339 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 2-year U.S. Treasury index), | ||||||||
3.883%, 2–25–45 (A)(B) | 8,500 | 8,650 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 3-year U.S. Treasury index): | ||||||||
5.685%, 4–25–20 (A)(B) | 4,950 | 5,298 | ||||||
4.493%, 1–25–46 (A)(B) | 5,958 | 6,274 | ||||||
4.120%, 2–25–46 (A)(B) | 390 | 406 | ||||||
4.573%, 12–25–48 (A)(B) | 18,196 | 19,132 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 5-year U.S. Treasury index): | ||||||||
3.668%, 2–25–22 (A)(B) | 4,000 | 4,039 | ||||||
5.116%, 8–25–44 (A)(B) | 6,990 | 7,512 | ||||||
4.490%, 12–25–44 (A)(B) | 17,000 | 18,042 |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
4.005%, 5–25–45 (A)(B) | $ | 6,500 | $ | 6,738 | ||||
3.617%, 8–25–46 (A)(B) | 2,250 | 2,292 | ||||||
4.752%, 11–25–46 (A)(B) | 8,000 | 8,562 | ||||||
3.681%, 11–25–47 (A)(B) | 2,050 | 2,061 | ||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 6-month U.S. Treasury index), | ||||||||
4.271%, 7–25–48 (A)(B) | 5,200 | 5,200 | ||||||
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates: | ||||||||
5.500%, 4–1–20 | 195 | 200 | ||||||
3.000%, 9–1–28 | 8,751 | 8,977 | ||||||
3.000%, 5–15–44 | 2,900 | 2,950 | ||||||
Federal National Mortgage Association Agency REMIC/CMO: | ||||||||
5.500%, 12–25–17 | 10 | 10 | ||||||
2.000%, 6–25–39 | 14,810 | 14,797 | ||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
4.503%, 12–1–19 | 7,296 | 7,615 | ||||||
4.646%, 7–1–20 | 6,213 | 6,494 | ||||||
4.381%, 6–1–21 | 13,869 | 14,824 | ||||||
5.500%, 2–1–22 | 496 | 517 | ||||||
3.500%, 8–1–26 | 3,923 | 4,099 | ||||||
2.000%, 10–25–41 | 13,269 | 13,025 | ||||||
2.000%, 12–25–42 | 1,926 | 1,933 | ||||||
2.500%, 7–25–45 | 2,651 | 2,635 | ||||||
2.500%, 9–25–45 | 4,255 | 4,216 | ||||||
Government National Mortgage Association Agency REMIC/CMO, | ||||||||
2.000%, 3–16–42 | 6,674 | 6,607 | ||||||
Government National Mortgage Association Fixed Rate Pass-Through Certificates, | ||||||||
3.500%, 4–20–34 | 6,411 | 6,571 | ||||||
|
| |||||||
216,375 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 16.9% |
| $ | 245,285 | |||||
(Cost: $247,439) |
UNITED STATES GOVERNMENT OBLIGATIONS | Principal | Value | ||||||
Treasury Obligations – 3.8% |
| |||||||
U.S. Treasury Notes: | ||||||||
2.750%, 2–28–18 | $ | 35,000 | $ | 35,221 | ||||
1.375%, 8–31–20 | 20,000 | 19,859 | ||||||
|
| |||||||
55,080 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 3.8% |
| $ | 55,080 | |||||
(Cost: $55,195) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Commercial Paper (D) – 1.9% |
| |||||||
Army & Air Force Exchange Service, | ||||||||
1.200%, 10–11–17 | 13,000 | 12,995 | ||||||
BorgWarner, Inc., | ||||||||
1.380%, 10–5–17 | 3,000 | 2,999 | ||||||
E.I. du Pont de Nemours and Co., | ||||||||
1.361%, 10–4–17 | 5,000 | 4,999 | ||||||
Sonoco Products Co., | ||||||||
1.330%, 10–2–17 | 6,243 | 6,243 | ||||||
|
| |||||||
27,236 | ||||||||
|
| |||||||
Master Note – 0.1% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (E) | 1,919 | 1,919 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 2.0% |
| $ | 29,155 | |||||
(Cost: $29,157) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.6% |
| $ | 1,442,869 | |||||
(Cost: $1,438,422) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.4% |
| 6,308 | ||||||
NET ASSETS – 100.0% |
| $ | 1,449,177 |
Notes to Schedule of Investments
(A) | Securities were purchased pursuant to an exemption from registration available under Rule 144A under the Securities Act of 1933 and may only be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2017 the total value of these securities amounted to $336,988 or 23.3% of net assets. |
(B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description. |
(C) | Step bond that pays an initial coupon rate for the first period and then a higher or lower coupon rate for the following periods. Interest rate disclosed is that which is in effect at September 30, 2017. |
(D) | Rate shown is the yield to maturity at September 30, 2017. |
2017 | SEMIANNUAL REPORT | 81 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
(E) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | — | $ | 18,477 | $ | — | ||||||
Corporate Debt Securities | — | 1,047,380 | — | |||||||||
Mortgage-Backed Securities | — | 7,904 | — | |||||||||
Municipal Bonds | — | 39,588 | — | |||||||||
United States Government Agency Obligations | — | 245,285 | — | |||||||||
United States Government Obligations | — | 55,080 | — | |||||||||
Short-Term Securities | — | 29,155 | — | |||||||||
Total | $ | — | $ | 1,442,869 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
CMO = Collateralized Mortgage Obligation
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
REMIC = Real Estate Mortgage Investment Conduit
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
82 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Ivy International Core Equity Fund, Class N | 41.6 | % | ||
Ivy Emerging Markets Equity Fund, Class N | 18.3 | % | ||
Ivy European Opportunities Fund, Class N | 15.5 | % | ||
Ivy Global Income Allocation Fund, Class N | 14.5 | % | ||
Ivy Global Growth Fund, Class N | 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. |
2017 | SEMIANNUAL REPORT | 83 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
AFFILIATED MUTUAL FUNDS | Shares | Value | ||||||
Ivy Emerging Markets Equity Fund, Class N (A) | 1,818 | $ | 37,751 | |||||
Ivy European Opportunities Fund, Class N | 963 | 32,013 | ||||||
Ivy Global Growth Fund, Class N (A) | 427 | 20,550 | ||||||
Ivy Global Income Allocation Fund, Class N | 1,943 | 29,968 | ||||||
Ivy International Core Equity Fund, Class N | 4,333 | 85,927 | ||||||
|
| |||||||
TOTAL AFFILIATED MUTUAL FUNDS – 99.9% |
| $ | 206,209 | |||||
(Cost: $167,646) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Master Note — 0.1% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10-4-17 (B) | $ | 261 | $ | 261 | ||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 0.1% |
| $ | 261 | |||||
(Cost: $261) | ||||||||
TOTAL INVESTMENT SECURITIES – 100.0% |
| $ | 206,470 | |||||
(Cost: $167,907) |
| |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.0% |
| 43 | ||||||
NET ASSETS – 100.0% |
| $ | 206,513 |
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, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 206,209 | $ | — | $ | — | ||||||
Short-Term Securities | — | 261 | — | |||||||||
Total | $ | 206,209 | $ | 261 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
LIBOR = London Interbank Offered Rate
See Accompanying Notes to Financial Statements.
84 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY MICRO CAP GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 93.3% | |||
Health Care | 30.6% | |||
Information Technology | 28.7% | |||
Industrials | 12.4% | |||
Consumer Discretionary | 9.1% | |||
Energy | 6.3% | |||
Real Estate | 2.8% | |||
Consumer Staples | 2.3% | |||
Financials | 1.1% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 6.7% |
Lipper Rankings
Category: Small-Cap Growth Funds | Rank | Percentile | ||||
1 Year | 535/550 | 98 | ||||
3 Year | 443/493 | 90 | ||||
5 Year | 411/448 | 92 |
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 | ||
Aerie Pharmaceuticals, Inc. | Health Care | Pharmaceuticals | ||
8x8, Inc. | Information Technology | Application Software | ||
Mimecast Ltd. | Information Technology | Internet Software & Services | ||
MYR Group, Inc. | Industrials | Construction & Engineering | ||
Tactile Systems Technology, Inc. | Health Care | Health Care Equipment | ||
Mercury Computer Systems, Inc. | Industrials | Aerospace & Defense | ||
K2M Group Holdings, Inc. | Health Care | Health Care Equipment | ||
Q2 Holdings, Inc. | Information Technology | Internet Software & Services | ||
Nautilus Group, Inc. (The) | Consumer Discretionary | Leisure Products | ||
Community Healthcare Trust, Inc. | Real Estate | Health Care 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. |
2017 | SEMIANNUAL REPORT | 85 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MICRO CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Auto Parts & Equipment – 2.8% |
| |||||||
Motorcar Parts of America, Inc. (A) | 154 | $ | 4,522 | |||||
|
| |||||||
Home Improvement Retail – 2.1% | ||||||||
Tile Shop Holdings, Inc. | 266 | 3,384 | ||||||
|
| |||||||
Leisure Products – 2.8% | ||||||||
Nautilus Group, Inc. (The) (A) | 275 | 4,644 | ||||||
|
| |||||||
Specialty Stores – 1.4% | ||||||||
Sportsman’s Warehouse Holdings, Inc. (A) | 528 | 2,381 | ||||||
|
| |||||||
Total Consumer Discretionary – 9.1% |
| 14,931 | ||||||
Consumer Staples | ||||||||
Distillers & Vintners – 1.8% | ||||||||
MGP Ingredients, Inc. | 49 | 2,960 | ||||||
|
| |||||||
Packaged Foods & Meats – 0.5% | ||||||||
Inventure Foods, Inc. (A) | 176 | 825 | ||||||
|
| |||||||
Total Consumer Staples – 2.3% |
| 3,785 | ||||||
Energy | ||||||||
Oil & Gas Equipment & Services – 3.6% |
| |||||||
Natural Gas Services Group, Inc. (A) | 67 | 1,913 | ||||||
NCS Multistage Holdings, Inc. (A) | 73 | 1,750 | ||||||
Ranger Energy Services, Inc. (A) | 158 | 2,317 | ||||||
|
| |||||||
5,980 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 2.7% |
| |||||||
Earthstone Energy, Inc. (A) | 92 | 1,010 | ||||||
Ring Energy, Inc. (A) | 236 | 3,420 | ||||||
|
| |||||||
4,430 | ||||||||
|
| |||||||
Total Energy – 6.3% |
| 10,410 | ||||||
Financials | ||||||||
Regional Banks – 1.1% | ||||||||
State Bank Financial Corp. | 63 | 1,796 | ||||||
|
| |||||||
Total Financials – 1.1% |
| 1,796 | ||||||
Health Care | ||||||||
Biotechnology – 1.2% | ||||||||
Natera, Inc. (A) | 150 | 1,940 | ||||||
|
| |||||||
Health Care Distributors – 2.3% | ||||||||
PetIQ, Inc. (A) | 141 | 3,805 | ||||||
|
| |||||||
Health Care Equipment – 13.7% | ||||||||
AxoGen, Inc. (A) | 226 | 4,375 | ||||||
Entellus Medical, Inc. (A) | 209 | 3,852 | ||||||
K2M Group Holdings, Inc. (A) | 229 | 4,855 | ||||||
Obalon Therapeutics, Inc. (A) | 166 | 1,583 | ||||||
Oxford Immunotec Global plc (A) | 160 | 2,688 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Health Care Equipment (Continued) |
| |||||||
Tactile Systems Technology, Inc. (A) | 166 | $ | 5,129 | |||||
|
| |||||||
22,482 | ||||||||
|
| |||||||
Health Care Services – 1.4% | ||||||||
Teladoc, Inc. (A) | 69 | 2,300 | ||||||
|
| |||||||
Health Care Technology – 5.0% | ||||||||
Evolent Health, Inc., Class A (A) | 178 | 3,174 | ||||||
Omnicell, Inc. (A) | 48 | 2,457 | ||||||
Tabula Rasa HealthCare, Inc. (A) | 99 | 2,658 | ||||||
|
| |||||||
8,289 | ||||||||
|
| |||||||
Pharmaceuticals – 7.0% | ||||||||
Aerie Pharmaceuticals, Inc. (A) | 140 | 6,818 | ||||||
Intersect ENT, Inc. (A) | 115 | 3,579 | ||||||
Revance Therapeutics, Inc. (A) | 44 | 1,218 | ||||||
|
| |||||||
11,615 | ||||||||
|
| |||||||
Total Health Care – 30.6% |
| 50,431 | ||||||
Industrials | ||||||||
Aerospace & Defense – 3.1% | ||||||||
Mercury Computer Systems, Inc. (A) | 98 | 5,105 | ||||||
|
| |||||||
Building Products – 3.6% | ||||||||
American Woodmark Corp. (A) | 30 | 2,859 | ||||||
PGT Innovations, Inc. (A) | 207 | 3,093 | ||||||
|
| |||||||
5,952 | ||||||||
|
| |||||||
Construction & Engineering – 3.1% |
| |||||||
MYR Group, Inc. (A) | 177 | 5,153 | ||||||
|
| |||||||
Industrial Machinery – 2.6% | ||||||||
Kornit Digital Ltd. (A) | 274 | 4,195 | ||||||
|
| |||||||
Total Industrials – 12.4% |
| 20,405 | ||||||
Information Technology | ||||||||
Application Software – 4.0% | ||||||||
8x8, Inc. (A) | 489 | 6,607 | ||||||
|
| |||||||
Communications Equipment – 1.9% |
| |||||||
Oclaro, Inc. (A) | 363 | 3,136 | ||||||
|
| |||||||
Internet Software & Services – 15.5% |
| |||||||
Cornerstone OnDemand, Inc. (A) | 111 | 4,491 | ||||||
Five9, Inc. (A) | 125 | 2,995 | ||||||
GTT Communications, Inc. (A) | 120 | 3,811 | ||||||
Mimecast Ltd. (A) | 219 | 6,225 | ||||||
Q2 Holdings, Inc. (A) | 113 | 4,685 | ||||||
SPS Commerce, Inc. (A) | 58 | 3,289 | ||||||
|
| |||||||
25,496 | ||||||||
|
| |||||||
Semiconductor Equipment – 4.6% |
| |||||||
Aehr Test Systems (A) | 293 | 1,200 | ||||||
Ichor Holdings Ltd. (A) | 91 | 2,444 | ||||||
PDF Solutions, Inc. (A) | 253 | 3,918 | ||||||
|
| |||||||
7,562 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Semiconductors – 2.1% | ||||||||
NVE Corp. | 44 | $ | 3,467 | |||||
|
| |||||||
Systems Software – 0.6% | ||||||||
Rapid7, Inc. (A) | 50 | 884 | ||||||
|
| |||||||
Total Information Technology – 28.7% |
| 47,152 | ||||||
Real Estate | ||||||||
Health Care REITs – 2.8% | ||||||||
Community Healthcare Trust, Inc. | 168 | 4,536 | ||||||
|
| |||||||
Total Real Estate – 2.8% |
| 4,536 | ||||||
TOTAL COMMON STOCKS – 93.3% |
| $ | 153,446 | |||||
(Cost: $106,129) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (B) – 3.8% | ||||||||
Sonoco Products Co., | ||||||||
1.330%, 10–2–17 | $ | 6,225 | 6,224 | |||||
|
| |||||||
Master Note – 3.1% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10-4-17 (C) | 5,127 | 5,127 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 6.9% |
| $ | 11,351 | |||||
(Cost: $11,352) | ||||||||
TOTAL INVESTMENT SECURITIES – 100.2% |
| $ | 164,797 | |||||
(Cost: $117,481) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)% |
| (292 | ) | |||||
NET ASSETS – 100.0% |
| $ | 164,505 |
86 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MICRO CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Notes to Schedule of Investments
(A) | No dividends were paid during the preceding 12 months. |
(B) | Rate shown is the yield to maturity at September 30, 2017. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 153,446 | $ | — | $ | — | ||||||
Short-Term Securities | — | 11,351 | — | |||||||||
Total | $ | 153,446 | $ | 11,351 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
LIBOR = London Interbank Offered Rate
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 87 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY MID CAP GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 99.0% | |||
Information Technology | 28.4% | |||
Consumer Discretionary | 19.3% | |||
Health Care | 17.4% | |||
Industrials | 15.3% | |||
Financials | 8.8% | |||
Consumer Staples | 5.4% | |||
Energy | 2.3% | |||
Materials | 2.1% | |||
Purchased Options | 0.1% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 0.9% |
Lipper Rankings
Category: Mid-Cap Growth Funds | Rank | Percentile | ||||
1 Year | 188/376 | 50 | ||||
3 Year | 272/356 | 77 | ||||
5 Year | 246/309 | 80 | ||||
10 Year | 45/225 | 20 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Top 10 Equity Holdings
Company | Sector | Industry | ||
Intuitive Surgical, Inc. | Health Care | Health Care Equipment | ||
Zoetis, Inc. | Health Care | Pharmaceuticals | ||
Fastenal Co. | Industrials | Trading Companies & Distributors | ||
CoStar Group, Inc. | Information Technology | Internet Software & Services | ||
Electronic Arts, Inc. | Information Technology | Home Entertainment Software | ||
Polaris Industries, Inc. | Consumer Discretionary | Leisure Products | ||
CME Group, Inc. | Financials | Financial Exchanges & Data | ||
BorgWarner, Inc. | Consumer Discretionary | Auto Parts & Equipment | ||
ServiceNow, Inc. | Information Technology | Systems Software | ||
Tractor Supply Co. | Consumer Discretionary | Specialty Stores |
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. |
88 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MID CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Apparel, Accessories & Luxury Goods – 3.7% |
| |||||||
Burberry Group plc (A) | 1,657 | $ | 39,070 | |||||
lululemon athletica, Inc. (B) | 668 | 41,563 | ||||||
Under Armour, Inc., Class C (B) | 340 | 5,109 | ||||||
|
| |||||||
85,742 | ||||||||
|
| |||||||
Auto Parts & Equipment – 2.4% |
| |||||||
BorgWarner, Inc. | 1,113 | 56,995 | ||||||
|
| |||||||
Homefurnishing Retail – 1.4% |
| |||||||
Williams-Sonoma, Inc. | 638 | 31,819 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 1.3% |
| |||||||
Norwegian Cruise Line Holdings Ltd. (B) | 582 | 31,458 | ||||||
|
| |||||||
Internet & Direct Marketing Retail – 0.4% |
| |||||||
Duluth Holdings, Inc., Class B (B) | 442 | 8,976 | ||||||
|
| |||||||
Leisure Products – 2.7% |
| |||||||
Polaris Industries, Inc. | 598 | 62,521 | ||||||
|
| |||||||
Restaurants – 2.8% |
| |||||||
Chipotle Mexican Grill, Inc., Class A (B) | 69 | 21,120 | ||||||
Dunkin’ Brands Group, Inc. | 835 | 44,324 | ||||||
|
| |||||||
65,444 | ||||||||
|
| |||||||
Specialty Stores – 4.6% |
| |||||||
Tiffany & Co. | 578 | 53,040 | ||||||
Tractor Supply Co. | 877 | 55,531 | ||||||
|
| |||||||
108,571 | ||||||||
|
| |||||||
Total Consumer Discretionary – 19.3% |
| 451,526 | ||||||
Consumer Staples | ||||||||
Food Retail – 1.0% |
| |||||||
Sprouts Farmers Market, Inc. (B) | 1,240 | 23,269 | ||||||
|
| |||||||
Packaged Foods & Meats – 4.4% |
| |||||||
Blue Buffalo Pet Products, Inc. (B) | 1,067 | 30,239 | ||||||
Hain Celestial Group, Inc. (The) (B) | 769 | 31,628 | ||||||
Hershey Foods Corp. | 133 | 14,467 | ||||||
Lance, Inc. | 714 | 27,236 | ||||||
|
| |||||||
103,570 | ||||||||
|
| |||||||
Total Consumer Staples – 5.4% |
| 126,839 | ||||||
Energy | ||||||||
Oil & Gas Exploration & Production – 2.3% |
| |||||||
Cabot Oil & Gas Corp. | 991 | 26,504 | ||||||
Cimarex Energy Co. | 236 | 26,780 | ||||||
|
| |||||||
53,284 | ||||||||
|
| |||||||
Total Energy – 2.3% |
| 53,284 | ||||||
Financials | ||||||||
Asset Management & Custody Banks – 1.1% |
| |||||||
Oaktree Capital Group LLC | 526 | 24,760 | ||||||
|
|
COMMON STOCKS | Shares | Value | ||||||
Diversified Banks – 1.2% |
| |||||||
Northern Trust Corp. | 314 | $ | 28,851 | |||||
|
| |||||||
Financial Exchanges & Data – 3.4% |
| |||||||
CME Group, Inc. | 439 | 59,604 | ||||||
MarketAxess Holdings, Inc. | 111 | 20,512 | ||||||
|
| |||||||
80,116 | ||||||||
|
| |||||||
Regional Banks – 3.1% |
| |||||||
First Republic Bank | 448 | 46,806 | ||||||
Signature Bank (B) | 201 | 25,764 | ||||||
|
| |||||||
72,570 | ||||||||
|
| |||||||
Total Financials – 8.8% |
| 206,297 | ||||||
Health Care | ||||||||
Biotechnology – 3.2% |
| |||||||
ACADIA Pharmaceuticals, Inc. (B) | 1,035 | 39,006 | ||||||
BioMarin Pharmaceutical, Inc. (B) | 393 | 36,568 | ||||||
|
| |||||||
75,574 | ||||||||
|
| |||||||
Health Care Equipment – 6.4% |
| |||||||
Abiomed, Inc. (B) | 74 | 12,421 | ||||||
Edwards Lifesciences Corp. (B) | 466 | 50,926 | ||||||
Intuitive Surgical, Inc. (B) | 82 | 85,667 | ||||||
|
| |||||||
149,014 | ||||||||
|
| |||||||
Health Care Services – 1.4% |
| |||||||
Laboratory Corp. of America Holdings (B) | 223 | 33,630 | ||||||
|
| |||||||
Health Care Supplies – 1.5% |
| |||||||
Align Technology, Inc. (B) | 190 | 35,348 | ||||||
|
| |||||||
Pharmaceuticals – 4.9% |
| |||||||
Jazz Pharmaceuticals plc (B) | 160 | 23,349 | ||||||
Pacira Pharmaceuticals, Inc. (B) | 338 | 12,681 | ||||||
Zoetis, Inc. | 1,230 | 78,417 | ||||||
|
| |||||||
114,447 | ||||||||
|
| |||||||
Total Health Care – 17.4% |
| 408,013 | ||||||
Industrials | ||||||||
Air Freight & Logistics – 2.1% |
| |||||||
Expeditors International of Washington, Inc. | 827 | 49,522 | ||||||
|
| |||||||
Building Products – 4.1% |
| |||||||
A. O. Smith Corp. | 559 | 33,203 | ||||||
Allegion plc | 331 | 28,606 | ||||||
Fortune Brands Home & Security, Inc. | 514 | 34,561 | ||||||
|
| |||||||
96,370 | ||||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 2.2% |
| |||||||
WABCO Holdings, Inc. (B) | 179 | 26,504 | ||||||
Westinghouse Air Brake Technologies Corp. | 341 | 25,866 | ||||||
|
| |||||||
52,370 | ||||||||
|
| |||||||
Industrial Machinery – 1.9% |
| |||||||
IDEX Corp. | 373 | 45,314 | ||||||
|
|
COMMON STOCKS | Shares | Value | ||||||
Railroads – 0.3% |
| |||||||
Kansas City Southern | 54 | $ | 5,922 | |||||
|
| |||||||
Research & Consulting Services – 1.4% |
| |||||||
TransUnion (B) | 669 | 31,618 | ||||||
|
| |||||||
Trading Companies & Distributors – 3.3% |
| |||||||
Fastenal Co. | 1,689 | 76,968 | ||||||
|
| |||||||
Total Industrials – 15.3% |
| 358,084 | ||||||
Information Technology | ||||||||
Application Software – 3.0% |
| |||||||
Ellie Mae, Inc. (B) | 211 | 17,366 | ||||||
Guidewire Software, Inc. (B) | 469 | 36,518 | ||||||
Tyler Technologies, Inc. (B) | 94 | 16,410 | ||||||
|
| |||||||
70,294 | ||||||||
|
| |||||||
Communications Equipment – 2.7% |
| |||||||
Arista Networks, Inc. (B) | 145 | 27,424 | ||||||
Harris Corp. | 268 | 35,275 | ||||||
|
| |||||||
62,699 | ||||||||
|
| |||||||
Data Processing & Outsourced Services – 1.2% |
| |||||||
Square, Inc., Class A (B) | 941 | 27,108 | ||||||
|
| |||||||
Electronic Components – 1.4% |
| |||||||
Maxim Integrated Products, Inc. | 687 | 32,789 | ||||||
|
| |||||||
Electronic Manufacturing Services – 2.3% |
| |||||||
Trimble Navigation Ltd. (B) | 1,369 | 53,728 | ||||||
|
| |||||||
Home Entertainment Software – 2.9% |
| |||||||
Electronic Arts, Inc. (B) | 575 | 67,866 | ||||||
|
| |||||||
Internet Software & Services – 8.5% |
| |||||||
CoStar Group, Inc. (B) | 253 | 67,893 | ||||||
GrubHub, Inc. (B) | 1,019 | 53,639 | ||||||
MercadoLibre, Inc. | 197 | 50,992 | ||||||
Pandora Media, Inc. (B) | 3,604 | 27,749 | ||||||
|
| |||||||
200,273 | ||||||||
|
| |||||||
Semiconductors – 2.0% |
| |||||||
Microchip Technology, Inc. | 527 | 47,334 | ||||||
|
| |||||||
Systems Software – 4.4% |
| |||||||
Red Hat, Inc. (B) | 428 | 47,420 | ||||||
ServiceNow, Inc. (B) | 473 | 55,533 | ||||||
|
| |||||||
102,953 | ||||||||
|
| |||||||
Total Information Technology – 28.4% |
| 665,044 | ||||||
Materials | ||||||||
Fertilizers & Agricultural Chemicals – 1.0% |
| |||||||
Scotts Miracle-Gro Co. (The) | 249 | 24,242 | ||||||
|
| |||||||
Specialty Chemicals – 1.1% | ||||||||
Axalta Coating Systems Ltd. (B) | 868 | 25,105 | ||||||
|
| |||||||
Total Materials – 2.1% |
| 49,347 | ||||||
TOTAL COMMON STOCKS – 99.0% |
| $ | 2,318,434 | |||||
(Cost: $1,687,185) |
2017 | SEMIANNUAL REPORT | 89 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MID CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
PURCHASED OPTIONS | Number of Contracts (Unrounded) | Notional Amount | Value | |||||||||
Kansas City Southern, |
| |||||||||||
Call $115.00, Expires 12–15–17, OTC (Ctrpty: UBS AG) | 339 | 34 | $ | 59 | ||||||||
Russell 2000 Index, Put $1,450.00, Expires 11–17–17 | 907 | 91 | 1,302 | |||||||||
SPDR S&P Midcap 400 ETF Trust, Put $320.00, Expires 11–17–17, OTC (Ctrpty: Citibank N.A.) | 7,735 | 773 | 2,185 | |||||||||
|
| |||||||||||
TOTAL PURCHASED OPTIONS – 0.1% |
| $ | 3,546 | |||||||||
(Cost: $3,481) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Commercial Paper (C) – 1.2% | ||||||||
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.), | ||||||||
1.580%, 10–10–17 | $ | 7,000 | $ | 6,997 | ||||
General Mills, Inc., | ||||||||
1.510%, 10–10–17 | 4,000 | 3,998 | ||||||
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), | ||||||||
1.490%, 10–12–17 | 5,000 | 4,998 | ||||||
J.M. Smucker Co. (The), | ||||||||
1.390%, 10–2–17 | 2,596 | 2,596 | ||||||
John Deere Canada ULC (GTD by Deere & Co.), | ||||||||
1.190%, 10–23–17 | 5,000 | 4,996 | ||||||
McDonalds Corp., | ||||||||
1.500%, 10–11–17 | 4,000 | 3,998 | ||||||
|
| |||||||
27,583 | ||||||||
|
|
Value | ||||||||
TOTAL SHORT-TERM SECURITIES – 1.2% |
| $ | 27,583 | |||||
(Cost: $27,585) | ||||||||
TOTAL INVESTMENT SECURITIES – 100.3% |
| $ | 2,349,563 | |||||
(Cost: $1,718,251) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.3)% |
| (7,662 | ) | |||||
NET ASSETS – 100.0% |
| $ | 2,341,901 |
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, 2017. |
The following written options were outstanding at September 30, 2017 (contracts and exercise prices unrounded):
Underlying Security | Counterparty, if OTC | Type | Number of Contracts | Notional Amount | Expiration Month | Exercise Price | Premium Received | Value | ||||||||||||||||||||||||||||
Kansas City Southern | UBS AG | Put | 339 | 34 | December 2017 | $ | 100.00 | $ | 54 | $ | (49 | ) | ||||||||||||||||||||||||
Sprouts Farmers Market, Inc. | N/A | Put | 2,444 | 244 | October 2017 | 22.50 | 748 | (917 | ) | |||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||
$ | 802 | $ | (966 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 2,318,434 | $ | — | $ | — | ||||||
Purchased Options | 1,302 | 2,244 | — | |||||||||
Short-Term Securities | — | 27,583 | — | |||||||||
Total | $ | 2,319,736 | $ | 29,827 | $ | — | ||||||
Liabilities | ||||||||||||
Written Options | $ | — | $ | 966 | $ | — |
During the period ended September 30, 2017, 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.
90 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY MID CAP INCOME OPPORTUNITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 98.3% | |||
Consumer Discretionary | 20.0% | |||
Information Technology | 17.0% | |||
Industrials | 14.6% | |||
Materials | 11.4% | |||
Health Care | 10.4% | |||
Financials | 8.8% | |||
Consumer Staples | 7.4% | |||
Energy | 3.3% | |||
Utilities | 2.8% | |||
Real Estate | 2.6% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 1.7% |
Lipper Rankings
Category: Mid-Cap Core Funds Universe Average | Rank | Percentile | ||||
1 Year | 355/388 | 92 |
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 | ||
HNI Corp. | Industrials | Office Services & Supplies | ||
Glacier Bancorp, Inc. | Financials | Regional Banks | ||
Cracker Barrel Old Country Store, Inc. | Consumer Discretionary | Restaurants | ||
Sonoco Products Co. | Materials | Paper Packaging | ||
National Instruments Corp. | Information Technology | Electronic Equipment & Instruments | ||
V.F. Corp. | Consumer Discretionary | Apparel, Accessories & Luxury Goods | ||
Arthur J. Gallagher & Co. | Financials | Insurance Brokers | ||
Rockwell Automation, Inc. | Industrials | Electrical Components & Equipment | ||
HealthSouth Corp. | Health Care | Health Care Facilities | ||
C.H. Robinson Worldwide, Inc. | Industrials | Air Freight & Logistics |
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. |
2017 | SEMIANNUAL REPORT | 91 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Apparel, Accessories & Luxury Goods – 2.9% |
| |||||||
V.F. Corp. | 156 | $ | 9,926 | |||||
|
| |||||||
Consumer Electronics – 2.8% |
| |||||||
Garmin Ltd. | 176 | 9,523 | ||||||
|
| |||||||
Home Furnishings – 2.8% |
| |||||||
Leggett & Platt, Inc. | 202 | 9,634 | ||||||
|
| |||||||
Household Appliances – 2.8% |
| |||||||
Snap-on, Inc. | 63 | 9,432 | ||||||
|
| |||||||
Leisure Products – 2.8% |
| |||||||
Polaris Industries, Inc. | 91 | 9,494 | ||||||
|
| |||||||
Movies & Entertainment – 2.9% |
| |||||||
Cinemark Holdings, Inc. | 267 | 9,653 | ||||||
|
| |||||||
Restaurants – 3.0% |
| |||||||
Cracker Barrel Old Country Store, Inc. | 66 | 10,006 | ||||||
|
| |||||||
Total Consumer Discretionary – 20.0% |
| 67,668 | ||||||
Consumer Staples | ||||||||
Household Products – 2.8% |
| |||||||
Clorox Co. (The) | 71 | 9,358 | ||||||
|
| |||||||
Packaged Foods & Meats – 4.6% |
| |||||||
Hershey Foods Corp. | 62 | 6,813 | ||||||
Kellogg Co. | 141 | 8,824 | ||||||
|
| |||||||
15,637 | ||||||||
|
| |||||||
Total Consumer Staples – 7.4% |
| 24,995 | ||||||
Energy | ||||||||
Oil & Gas Drilling – 0.5% |
| |||||||
Helmerich & Payne, Inc. | 32 | 1,654 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 2.8% |
| |||||||
Targa Resources Corp. | 198 | 9,374 | ||||||
|
| |||||||
Total Energy – 3.3% |
| 11,028 | ||||||
Financials | ||||||||
Insurance Brokers – 2.9% |
| |||||||
Arthur J. Gallagher & Co. | 161 | 9,891 | ||||||
|
| |||||||
Regional Banks – 5.9% |
| |||||||
Glacier Bancorp, Inc. | 270 | 10,184 | ||||||
Umpqua Holdings Corp. | 497 | 9,702 | ||||||
|
| |||||||
19,886 | ||||||||
|
| |||||||
Total Financials – 8.8% |
| 29,777 | ||||||
Health Care | ||||||||
Health Care Equipment – 2.9% |
| |||||||
Becton Dickinson & Co. | 50 | 9,723 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Health Care Facilities – 2.9% |
| |||||||
HealthSouth Corp. | 212 | $ | 9,849 | |||||
|
| |||||||
Health Care Services – 4.6% |
| |||||||
Cardinal Health, Inc. | 145 | 9,685 | ||||||
Quest Diagnostics, Inc. | 63 | 5,945 | ||||||
|
| |||||||
15,630 | ||||||||
|
| |||||||
Total Health Care – 10.4% |
| 35,202 | ||||||
Industrials | ||||||||
Air Freight & Logistics – 2.9% |
| |||||||
C.H. Robinson Worldwide, Inc. | 129 | 9,821 | ||||||
|
| |||||||
Diversified Support Services – 2.9% |
| |||||||
KAR Auction Services, Inc. | 205 | 9,793 | ||||||
|
| |||||||
Electrical Components & Equipment – 2.9% |
| |||||||
Rockwell Automation, Inc. | 55 | 9,875 | ||||||
|
| |||||||
Environmental & Facilities Services – 2.9% |
| |||||||
Republic Services, Inc., Class A | 145 | 9,579 | ||||||
|
| |||||||
Office Services & Supplies – 3.0% |
| |||||||
HNI Corp. | 246 | 10,200 | ||||||
|
| |||||||
Total Industrials – 14.6% |
| 49,268 | ||||||
Information Technology | ||||||||
Communications Equipment – 2.8% |
| |||||||
Harris Corp. | 72 | 9,434 | ||||||
|
| |||||||
Data Processing & Outsourced Services – 5.6% |
| |||||||
Broadridge Financial Solutions, Inc. | 117 | 9,425 | ||||||
Paychex, Inc. | 158 | 9,471 | ||||||
|
| |||||||
18,896 | ||||||||
|
| |||||||
Electronic Components – 2.9% |
| |||||||
Maxim Integrated Products, Inc. | 205 | 9,791 | ||||||
|
| |||||||
Electronic Equipment & Instruments – 2.9% |
| |||||||
National Instruments Corp. | 237 | 9,986 | ||||||
|
| |||||||
Semiconductors – 2.8% |
| |||||||
Microchip Technology, Inc. | 107 | 9,575 | ||||||
|
| |||||||
Total Information Technology – 17.0% |
| 57,682 | ||||||
Materials | ||||||||
Fertilizers & Agricultural Chemicals – 2.8% |
| |||||||
Scotts Miracle-Gro Co. (The) | 98 | 9,514 | ||||||
|
| |||||||
Paper Packaging – 5.8% |
| |||||||
Avery Dennison Corp. | 98 | 9,651 | ||||||
Sonoco Products Co. | 198 | 9,995 | ||||||
|
| |||||||
19,646 | ||||||||
|
| |||||||
Specialty Chemicals – 2.8% |
| |||||||
RPM International, Inc. | 185 | 9,491 | ||||||
|
| |||||||
Total Materials – 11.4% |
| 38,651 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Real Estate | ||||||||
Residential REITs – 2.6% |
| |||||||
American Campus Communities, Inc. | 200 | $ | 8,818 | |||||
|
| |||||||
Total Real Estate – 2.6% |
| 8,818 | ||||||
Utilities | ||||||||
Electric Utilities – 2.8% |
| |||||||
OGE Energy Corp. | 268 | 9,656 | ||||||
|
| |||||||
Total Utilities – 2.8% |
| 9,656 | ||||||
TOTAL COMMON STOCKS – 98.3% |
| $ | 332,745 | |||||
(Cost: $281,676) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (A) – 1.2% | ||||||||
Medtronic Global Holdings SCA, | ||||||||
1.252%, 10–3–17 | $ | 4,000 | 3,999 | |||||
|
| |||||||
Master Note – 0.3% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (B) | 892 | 892 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 1.5% |
| $ | 4,891 | |||||
(Cost: $4,892) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.8% |
| $ | 337,636 | |||||
(Cost: $286,568) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2% |
| 515 | ||||||
NET ASSETS – 100.0% |
| $ | 338,151 |
92 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Notes to Schedule of Investments
(A) | Rate shown is the yield to maturity at September 30, 2017. |
(B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 332,745 | $ | — | $ | — | ||||||
Short-Term Securities | — | 4,891 | — | |||||||||
Total | $ | 332,745 | $ | 4,891 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
LIBOR = London Inberbank Offered Rate
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 93 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY MUNICIPAL BOND FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Bonds | 92.5% | |||
Municipal Bonds | 92.5% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 7.5% |
Lipper Rankings
Category: General Municipal Debt Funds | Rank | Percentile | ||||
1 Year | 158/257 | 62 | ||||
3 Year | 179/225 | 80 | ||||
5 Year | 162/204 | 80 | ||||
10 Year | 80/155 | 52 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Quality Weightings
Investment Grade | 84.8% | |||
AAA | 2.5% | |||
AA | 38.1% | |||
A | 34.2% | |||
BBB | 10.0% | |||
Non-Investment Grade | 7.7% | |||
BB | 1.3% | |||
B | 0.3% | |||
Non-rated | 6.1% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 7.5% |
Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s. For securities not rated by Moody’s, ratings are obtained from Fitch. 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. |
94 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS | Principal | Value | ||||||
Alabama – 1.2% |
| |||||||
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 | $ | 522 | ||||
The Spl Care Fac Fin Auth of Birmingham - Children’s Hosp, Hlth Care Fac Rev Bonds, Ser 2009, | ||||||||
6.000%, 6–1–39 | 750 | 811 | ||||||
Water Works Board of Birmingham, AL, Water Rev Bonds, Ser 2009-A, | ||||||||
5.125%, 1–1–34 | 750 | 789 | ||||||
|
| |||||||
2,122 | ||||||||
|
| |||||||
Arizona – 1.2% |
| |||||||
AZ Cert of Part, Ser 2010A (Insured by AGM), | ||||||||
5.250%, 10–1–26 | 1,000 | 1,080 | ||||||
Rio Nuevo Multipurp Fac Dist (Tucson, AZ), Sub Lien Excise Tax Rev Bonds, Ser 2008, | ||||||||
6.625%, 7–15–25 | 500 | 522 | ||||||
Univ Med Ctr Corp. (Tucson, AZ), Hosp Rev Bonds, Ser 2009, | ||||||||
6.500%, 7–1–39 | 500 | 547 | ||||||
|
| |||||||
2,149 | ||||||||
|
| |||||||
Arkansas – 0.5% |
| |||||||
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 | 869 | ||||||
|
| |||||||
California – 14.3% |
| |||||||
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 G-1 (SIFMA Municipal Swap Index plus 110 bps), | ||||||||
2.040%, 4–1–45 (A) | 1,500 | 1,526 | ||||||
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 | 382 | ||||||
CA Muni Fin Auth, Cmnty Hosp of Cent CA Oblig Group Cert of Part, | ||||||||
5.500%, 2–1–39 | 460 | 488 | ||||||
CA Muni Fin Auth, Edu Rev Bonds (American Heritage Edu Fndtn Proj), Ser 2016A, | ||||||||
5.000%, 6–1–36 | 1,000 | 1,118 | ||||||
CA Pollutn Ctl Fin Auth, Solid Waste Disp Rev Bonds (Republic Svc, Inc. Proj), Ser 2002B, | ||||||||
5.250%, 6–1–23 | 415 | 418 | ||||||
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A, | ||||||||
5.000%, 10–1–22 | 350 | 375 | ||||||
CA Statewide Cmnty Dev Auth, Insd Rev Bonds (Henry Mayo Newhall Mem Hosp), Ser 2007A, | ||||||||
5.000%, 10–1–37 | 500 | 500 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
California (Continued) |
| |||||||
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 | $ | 1,545 | ||||
CA Various Purp GO Bonds: | ||||||||
5.250%, 9–1–26 | 1,500 | 1,737 | ||||||
5.250%, 10–1–29 | 500 | 541 | ||||||
6.500%, 4–1–33 | 1,000 | 1,082 | ||||||
6.000%, 11–1–39 | 500 | 550 | ||||||
CA Various Purp GO Rfdg Bonds, | ||||||||
5.000%, 2–1–33 | 2,000 | 2,305 | ||||||
Cnty of Sacramento, Arpt Sys Sub and PFC/Grant Rev Bonds, Ser 2009, | ||||||||
5.125%, 7–1–25 | 500 | 515 | ||||||
Golden State Tob Securitization Corp., Enhanced Tob Stlmt Asset-Bkd Bonds, Ser 2013A, | ||||||||
5.000%, 6–1–30 | 1,000 | 1,156 | ||||||
La Quinta Redev Proj Areas No. 1 and 2, Tax Alloc Rfdg Bonds, Ser 2014A, | ||||||||
5.000%, 9–1–34 | 750 | 864 | ||||||
Los Angeles Unif Sch Dist (Cnty of Los Angeles, CA), GO Bonds, Election of 2005, Ser 2009F, | ||||||||
5.000%, 1–1–34 | 500 | 535 | ||||||
Modesto, CA, Irrigation Dist Fin Auth, Elec Sys Rev Bonds, Ser 2015A, | ||||||||
5.000%, 10–1–36 | 670 | 765 | ||||||
Mountain View Shoreline Reg Park Comnty (Santa Clara Cnty, CA), Rev Bonds, Ser 2011A, | ||||||||
5.000%, 8–1–21 | 250 | 284 | ||||||
Palomar Hlth, GO Rfdg Bonds, Ser 2016B, | ||||||||
4.000%, 8–1–37 | 1,000 | 1,055 | ||||||
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part, | ||||||||
6.750%, 11–1–39 | 250 | 280 | ||||||
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, 2010 Tax Alloc Bonds, Ser E: | ||||||||
5.250%, 10–1–20 | 570 | 642 | ||||||
6.000%, 10–1–25 | 445 | 511 | ||||||
San Jose, CA, Arpt Rev Bonds, Ser 2011A-1, | ||||||||
5.250%, 3–1–21 | 500 | 566 | ||||||
Santa Ana Unif Sch Dist (Orange County, CA), Election of 2008 Gen Oblig Bond, Series B, | ||||||||
0.000%, 8–1–37 (B) | 1,455 | 703 | ||||||
Southn CA Pub Power Auth, Transmission Proj Rev Bonds (Southn Transmission Proj), Ser 2008B, | ||||||||
6.000%, 7–1–27 | 500 | 520 | ||||||
State Pub Works Board of CA, Lease Rev Bonds (Various Cap Proj), Ser 2011A: | ||||||||
5.250%, 10–1–24 | 500 | 577 | ||||||
5.000%, 12–1–24 | 500 | 574 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
California (Continued) |
| |||||||
Successor Agy to the Redev Agy of the City of Stockton, Tax Alloc Rfdg Bonds, Ser 2016A, | ||||||||
5.000%, 9–1–37 | $ | 2,000 | $ | 2,294 | ||||
Trustees of the CA State Univ, Systemwide Rev Bonds, Ser 2015A, | ||||||||
5.000%, 11–1–38 | 500 | 587 | ||||||
Upland Unif Sch Dist (San Bernardino Cnty, CA), Election of 2008 GO Bonds, Ser A, | ||||||||
0.000%, 8–1–31(B) | 150 | 98 | ||||||
Vernon Elec Sys Rev Bonds, Ser 2012A, | ||||||||
5.500%, 8–1–41 | 315 | 349 | ||||||
|
| |||||||
25,442 | ||||||||
|
| |||||||
Colorado – 2.1% |
| |||||||
Adams 12 Five Star Sch, Adams and Broomfield Cnty, CO Cert of Part, Ser 2008, | ||||||||
5.000%, 12–1–25 | 500 | 524 | ||||||
City and Cnty of Broomfield, CO, Rfdg Cert of Part, Ser 2010, | ||||||||
5.000%, 12–1–23 | 500 | 561 | ||||||
Joint Sch Dist No. 28J, Adams and Arapahoe Cnty, CO, GO Bonds, Ser 2008, | ||||||||
6.000%, 12–1–28 | 500 | 530 | ||||||
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008, | ||||||||
6.125%, 12–1–30 | 500 | 504 | ||||||
Platte Vly Fire Protection Dist, Weld Cnty, CO, Cert of Part, Ser 2012, | ||||||||
5.000%, 12–1–36 | 300 | 322 | ||||||
Rgnl Trans Dist of CO, Cert of Part, Ser 2015A, | ||||||||
5.000%, 6–1–35 | 435 | 498 | ||||||
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010, | ||||||||
6.500%, 1–15–30 | 750 | 835 | ||||||
|
| |||||||
3,774 | ||||||||
|
| |||||||
Connecticut – 0.8% |
| |||||||
Cap City Econ Dev Auth, Prkg and Enrg Fee Rev Bonds, Ser 2008D, | ||||||||
5.000%, 6–15–22 | 370 | 380 | ||||||
CT GO Bonds, Ser 2012D (SIFMA Municipal Swap Index plus 92 bps), | ||||||||
1.860%, 9–15–19 (A) | 1,000 | 1,002 | ||||||
|
| |||||||
1,382 | ||||||||
|
| |||||||
District Of Columbia – 1.4% |
| |||||||
DC GO Rfdg Bonds, Ser 2008F (Insured by BHAC), | ||||||||
5.000%, 6–1–19 | 1,000 | 1,027 | ||||||
DC Hosp Rev Bonds (Sibley Mem Hosp Issue), Ser 2009, | ||||||||
6.375%, 10–1–39 | 750 | 829 |
2017 | SEMIANNUAL REPORT | 95 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
District Of Columbia (Continued) |
| |||||||
Metro WA DC Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2009C, | ||||||||
0.000%, 10–1–41 (B) | $ | 500 | $ | 649 | ||||
|
| |||||||
2,505 | ||||||||
|
| |||||||
Florida – 6.9% |
| |||||||
Brevard Cnty Hlth Fac Auth, Hlth Rev Bonds (Hlth First, Inc. Proj), Ser 2009B, | ||||||||
7.000%, 4–1–39 | 500 | 545 | ||||||
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009, | ||||||||
6.750%, 11–1–39 | 500 | 531 | ||||||
Hillsborough Cnty Aviation Auth, FL Intl Arpt, Sub Rev Bonds, Ser 2015B, | ||||||||
5.000%, 10–1–35 | 300 | 341 | ||||||
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008A, | ||||||||
5.625%, 8–15–29 | 555 | 578 | ||||||
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008B, | ||||||||
8.000%, 8–15–32 | 600 | 684 | ||||||
Miami-Dade Cnty, FL, Aviation Rev Bonds, Miami Intl Arpt (Hub of the Americas), Ser 2009A, | ||||||||
5.500%, 10–1–36 | 500 | 541 | ||||||
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B, | ||||||||
5.000%, 10–1–23 | 500 | 553 | ||||||
Miami-Dade Cnty, FL, GO Bonds (Bldg Better Cmnty Prog), Ser 2008B, | ||||||||
6.250%, 7–1–26 | 500 | 520 | ||||||
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008B (Insured by AGM), | ||||||||
5.250%, 10–1–22 | 500 | 589 | ||||||
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008C (Insured by BHAC), | ||||||||
5.000%, 10–1–17 | 500 | 500 | ||||||
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A, | ||||||||
7.250%, 10–1–34 | 500 | 615 | ||||||
Osceola Cnty, FL, Sales Tax Rev Rfdg Bonds, Ser 2016A, | ||||||||
5.000%, 10–1–37 | 2,005 | 2,319 | ||||||
Palm Beach Co, Hlth Fac Auth Rev Bonds (Lifespace Cmnty, Inc.), Ser 2015C, | ||||||||
5.000%, 5–15–30 | 1,000 | 1,150 | ||||||
Port St. Lucie, FL, Spl Assmt Rfdg Bonds (City Ctr Spl Assmt Dist), Ser 2008A, | ||||||||
5.750%, 7–1–20 | 500 | 518 | ||||||
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmnty Proj), Ser 2010A, | ||||||||
5.875%, 8–1–40 | 500 | 565 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Florida (Continued) |
| |||||||
St. Lucie, FL, Util Sys Rfdg Rev Bonds, Ser 2016, | ||||||||
4.000%, 9–1–34 | $ | 1,000 | $ | 1,059 | ||||
Volusia Cnty Edu Fac Auth, Edu Fac Rev Rfdg Bonds (Embry-Riddle Aeronautical Univ, Inc. Proj), Ser 2011, | ||||||||
5.250%, 10–15–22 | 500 | 579 | ||||||
|
| |||||||
12,187 | ||||||||
|
| |||||||
Georgia – 0.3% |
| |||||||
Muni Elec Auth of GA, Proj One Sub Bonds, Ser 2008D, | ||||||||
5.750%, 1–1–20 | 500 | 518 | ||||||
|
| |||||||
Hawaii – 1.6% | ||||||||
HI Arpt Sys Rev Bond, Rfdg Ser 2011, | ||||||||
5.000%, 7–1–21 | 1,000 | 1,132 | ||||||
HI Dept of Budget and Fin, Spl Purp Rev Bonds (The Queen’s Hlth Sys), Ser 2015A, | ||||||||
5.000%, 7–1–35 | 1,500 | 1,714 | ||||||
|
| |||||||
2,846 | ||||||||
|
| |||||||
Illinois – 6.0% |
| |||||||
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A, | ||||||||
5.000%, 5–1–26 | 150 | 150 | ||||||
Build IL Sales Tax Rev Bonds, Ser 2011, | ||||||||
5.000%, 6–15–27 | 500 | 550 | ||||||
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Rfdg Bonds, Ser 2015B, | ||||||||
5.000%, 1–1–34 | 1,000 | 1,144 | ||||||
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Rfdg Bonds, Ser 2016C, | ||||||||
5.000%, 1–1–34 | 1,500 | 1,732 | ||||||
City of Chicago, Second Lien Water Rev Bonds, Ser 2014, | ||||||||
5.000%, 11–1–39 | 1,500 | 1,636 | ||||||
City of Chicago, Second Lien Water Rev Bonds, Ser 2000, | ||||||||
5.000%, 11–1–30 | 500 | 576 | ||||||
IL Fin Auth, DePaul Univ Rev Bonds, Ser 2016, | ||||||||
5.000%, 10–1–41 | 2,410 | 2,727 | ||||||
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009, | ||||||||
6.500%, 4–1–39 | 500 | 535 | ||||||
IL Fin Auth, Rev Bonds, The Univ of Chicago, Ser 2008B, | ||||||||
5.500%, 7–1–19 | 500 | 517 | ||||||
IL Muni Elec Agy, Power Supply Sys Rev Rfdg Bonds, Ser 2015A, | ||||||||
5.000%, 2–1–32 | 695 | 810 | ||||||
IL Sales Tax Rev Bonds (Jr Oblig), Ser 2013, | ||||||||
5.000%, 6–15–26 | 300 | 344 | ||||||
|
| |||||||
10,721 | ||||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Indiana – 0.9% |
| |||||||
IN Muni Power Agy, Power Supply Sys Rfdg Rev Bonds, Ser 2016C, | ||||||||
5.000%, 1–1–39 | $ | 1,000 | $ | 1,144 | ||||
Mt. Vernon Sch Bldg Corp. of Hancock Cnty, IN, First Mtg Bonds, Ser 2007 (Insured by AGM), | ||||||||
5.250%, 1–15–32 | 500 | 506 | ||||||
|
| |||||||
1,650 | ||||||||
|
| |||||||
Iowa – 2.0% |
| |||||||
Altoona, IA, Annual Appropriation Urban Renewal Tax Incr Rev Bonds, Ser 2008, | ||||||||
6.000%, 6–1–34 | 1,000 | 1,035 | ||||||
Ames, IA, Hosp Rev Rfdg Bonds (Mary Greeley Med Ctr), Ser 2016, | ||||||||
4.000%, 6–15–35 | 1,510 | 1,592 | ||||||
IA Higher Edu Loan Auth, Private College Fac Rev Bonds (Upper IA Univ Proj), Ser 2012, | ||||||||
5.000%, 9–1–33 | 750 | 896 | ||||||
|
| |||||||
3,523 | ||||||||
|
| |||||||
Kansas – 2.0% | ||||||||
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009, | ||||||||
7.000%, 9–1–38 | 500 | 528 | ||||||
Saint Marys, KS, Pollutn Ctl Rev Bonds (Westn Res, Inc. Proj), Ser 1994 (Auction rate), | ||||||||
1.640%, 4–15–32 (A) | 2,000 | 1,860 | ||||||
Shawnee Cnty, KS, Cert of Part (First Responders Comm Proj), Ser 2012, | ||||||||
5.000%, 9–1–24 | 1,050 | 1,156 | ||||||
|
| |||||||
3,544 | ||||||||
|
| |||||||
Kentucky – 2.1% | ||||||||
Cmnwlth of KY, State Ppty and Bldg Comsn, Rev and Rev Rfdg Bonds, Proj No. 90, | ||||||||
5.750%, 11–1–19 | 500 | 526 | ||||||
Jefferson Cnty, KY, Envirnmt Fac Rev Bonds (Louisville Gas and Elec Co. Proj), Ser 2001A (Auction rate), | ||||||||
2.180%, 9–1–27 (A) | 1,500 | 1,388 | ||||||
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A: | ||||||||
5.500%, 6–1–21 | 500 | 557 | ||||||
6.500%, 3–1–45 | 675 | 770 | ||||||
Louisville Rgnl Arpt Auth, Arpt Sys Rev Bonds, Ser 2008A, | ||||||||
5.250%, 7–1–28 | 500 | 515 | ||||||
|
| |||||||
3,756 | ||||||||
|
| |||||||
Louisiana – 2.7% | ||||||||
LA Citizens Prop Ins Corp., Assmt Rev Rfdg Bonds, Ser 2012, | ||||||||
5.000%, 6–1–24 | 500 | 582 | ||||||
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 | 858 |
96 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Louisiana (Continued) | ||||||||
New Orleans Aviation Board, Rev Rfdg Bonds (Restructuring GARBs), Ser 2009A-1, | ||||||||
6.000%, 1–1–23 | $ | 500 | $ | 531 | ||||
New Orleans, LA, GO Rfdg Bonds, Ser 2012 (Insured by AGM), | ||||||||
5.000%, 12–1–26 | 1,500 | 1,708 | ||||||
Rgnl Transit Auth, New Orleans, LA, Sales Tax Rev Bonds, Ser 2010 (Insured by AGM), | ||||||||
5.000%, 12–1–22 | 1,000 | 1,110 | ||||||
|
| |||||||
4,789 | ||||||||
|
| |||||||
Maine – 1.5% | ||||||||
ME Tpk Auth, Tpk Rev Rfdg Bonds, Ser 2015, | ||||||||
5.000%, 7–1–34 | 2,255 | 2,602 | ||||||
|
| |||||||
Maryland – 0.8% | ||||||||
MD Econ Dev Corp., Pollutn Ctl Rev Rfdg Bonds (Potomac Elec Proj), Ser 2006, | ||||||||
6.200%, 9–1–22 | 500 | 536 | ||||||
MD Hlth and Higher Edu Fac Auth, Rev Bonds, Johns Hopkins Hlth Sys Oblig Group Issue, Ser 2012D (3-Month U.S. LIBOR*0.67 plus 83 bps), | ||||||||
1.659%, 5–15–38 (A) | 965 | 965 | ||||||
|
| |||||||
1,501 | ||||||||
|
| |||||||
Massachusetts – 0.6% | ||||||||
MA Dev Fin Agy, Rev Bonds, Foxborough Rgnl Charter Sch Issue, Ser 2010, | ||||||||
6.375%, 7–1–30 | 470 | 507 | ||||||
MA Edu Fin Auth, Edu Loan Rev Bonds, Issue I, Ser 2009, | ||||||||
6.000%, 1–1–28 | 510 | 540 | ||||||
|
| |||||||
1,047 | ||||||||
|
| |||||||
Michigan – 3.8% | ||||||||
Kalamazoo Hosp Fin Auth, Hosp Rev Rfdg Bonds (Bronson Methodist Hosp), Ser 2003A, | ||||||||
5.000%, 5–15–26 | 500 | 511 | ||||||
Lincoln Consolidated Sch Dist, Cnty of Washtenaw and Wayne, MI, Rfdg Bonds, Ser 2016A, | ||||||||
5.000%, 5–1–35 | 500 | 577 | ||||||
MI Fin Auth, Hosp Rev and Rfdg Bonds (Trinity Hlth Credit Group), Ser 2015MI, | ||||||||
5.000%, 12–1–35 | 500 | 568 | ||||||
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2015I, | ||||||||
5.000%, 4–15–34 | 500 | 581 | ||||||
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2016I, | ||||||||
4.000%, 10–15–36 | 1,000 | 1,055 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Michigan (Continued) | ||||||||
MI State Hosp Fin Auth, Hosp Rev and Rfdg Bonds (Henry Ford Hlth Sys), Ser 2009, | ||||||||
5.750%, 11–15–39 | $ | 750 | $ | 824 | ||||
MI State Hosp Fin Auth, Var Rate Rev Bonds (Ascension Hlth Credit Group), Ser 1999B-4, | ||||||||
5.000%, 11–15–32 | 2,000 | 2,299 | ||||||
State Bldg Auth, MI, 2008 Rev Rfdg Bonds (Fac Prog), Ser I, | ||||||||
5.000%, 10–15–18 | 305 | 317 | ||||||
|
| |||||||
6,732 | ||||||||
|
| |||||||
Minnesota – 0.3% | ||||||||
Minneapolis-St. Paul Metro Arpt Comsn, Sub Arpt Rev Rfdg Bonds, Ser 2010D, | ||||||||
5.000%, 1–1–20 | 500 | 541 | ||||||
|
| |||||||
Mississippi – 0.5% | ||||||||
The Univ of Southn MS, S.M. Edu Bldg Corp., Rev Bonds (Campus Fac Impvt Proj), Ser 2009, | ||||||||
5.375%, 9–1–36 | 750 | 811 | ||||||
|
| |||||||
Missouri – 5.5% | ||||||||
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A, | ||||||||
6.125%, 12–1–36 | 175 | 136 | ||||||
Hlth and Edu Fac Auth, Hlth Fac Rev Bonds (The Children’s Mercy Hosp), Ser 2009, | ||||||||
5.625%, 5–15–39 | 750 | 804 | ||||||
Indl Dev Auth of Joplin, MO, Hlth Fac Rev Bonds (Freeman Hlth Sys), Ser 2011, | ||||||||
5.500%, 2–15–31 | 750 | 817 | ||||||
Kansas City, MO, Spl Oblig Impvt and Rfdg Bonds (Downtown Arena Proj), Ser 2016E, | ||||||||
5.000%, 4–1–40 | 2,000 | 2,280 | ||||||
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Iatan 2 Proj), Ser 2015A, | ||||||||
5.000%, 12–1–37 | 1,000 | 1,127 | ||||||
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Prairie State Proj), Ser 2016A, | ||||||||
5.000%, 12–1–40 | 1,000 | 1,134 | ||||||
Platte Cnty R-III Sch Dist Bldg Corp., Leasehold Rfdg and Impvt Rev Bonds, Ser 2008, | ||||||||
5.000%, 3–1–28 | 340 | 345 | ||||||
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 | 1,208 | ||||||
St. Louis Muni Fin Corp., Compound Int Leasehold Rev Bonds (Convention Ctr Cap Impvt Proj), Ser 2010A (Insured by AGM), | ||||||||
0.000%, 7–15–36 (B) | 2,350 | 1,135 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Missouri (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 | $ | 205 | ||||
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 | 501 | ||||||
|
| |||||||
9,692 | ||||||||
|
| |||||||
Nebraska – 1.3% | ||||||||
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2015A, | ||||||||
5.000%, 2–1–33 | 1,000 | 1,157 | ||||||
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2016A, | ||||||||
5.000%, 2–1–41 | 1,000 | 1,137 | ||||||
|
| |||||||
2,294 | ||||||||
|
| |||||||
Nevada – 0.6% | ||||||||
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A, | ||||||||
8.000%, 6–15–30 | 500 | 559 | ||||||
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008: | ||||||||
6.250%, 12–1–17 | 270 | 272 | ||||||
6.500%, 12–1–18 | 290 | 309 | ||||||
|
| |||||||
1,140 | ||||||||
|
| |||||||
New Hampshire – 0.4% | ||||||||
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A, | ||||||||
6.875%, 7–1–41 | 150 | 168 | ||||||
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 | 558 | ||||||
|
| |||||||
726 | ||||||||
|
| |||||||
New Jersey – 2.8% | ||||||||
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 | 927 | ||||||
NJ Econ Dev Auth, Sch Fac Constr Rfdg Bonds, Ser 2011EE, | ||||||||
5.250%, 9–1–24 | 500 | 540 | ||||||
NJ Higher Edu Student Assistance Auth, Student Loan Rev Bonds, Ser 2011-1, | ||||||||
5.000%, 12–1–19 | 500 | 537 | ||||||
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds, Barnabas Hlth Issue, Ser 2011A, | ||||||||
5.625%, 7–1–37 | 500 | 580 | ||||||
NJ Hlth Care Fac Fin Auth, Rev Bonds, Virtua Hlth Issue, Ser 2009A, | ||||||||
5.500%, 7–1–38 | 500 | 535 |
2017 | SEMIANNUAL REPORT | 97 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
New Jersey (Continued) | ||||||||
NJ Trans Trust Fund Auth, Trans Sys Bonds (Cap Apprec Bonds), Ser 2010A, | ||||||||
0.000%, 12–15–40 (B) | $ | 2,000 | $ | 677 | ||||
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2006A (Insured by AGM/CR), | ||||||||
5.500%, 12–15–22 | 500 | 582 | ||||||
Passaic Vly Sewerage Commissioners (NJ), Sewer Sys Bonds, Ser G, | ||||||||
5.750%, 12–1–21 | 435 | 505 | ||||||
|
| |||||||
4,883 | ||||||||
|
| |||||||
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 | 50 | 51 | ||||||
|
| |||||||
New York – 10.2% | ||||||||
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 | 843 | ||||||
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 | 869 | ||||||
Long Island Power Auth, Elec Sys Gen Rev Bonds, Ser 2014A (Insured by AGM), | ||||||||
5.000%, 9–1–39 | 1,500 | 1,702 | ||||||
Metro Trans Auth, Trans Rev Green Bonds, Ser 2016A-1, | ||||||||
5.000%, 11–15–41 | 500 | 575 | ||||||
NY Dormitory Auth, Mercy Med Ctr Rev Bonds (Catholic Hlth of Long Island Oblig Group), Ser 1999B (Auction rate), | ||||||||
2.361%, 7–1–29 (A) | 1,225 | 1,141 | ||||||
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohowk Power Corp. Proj), Ser 1985A (Insured by AMBAC) (Auction rate), | ||||||||
3.088%, 12–1–23 (A) | 1,380 | 1,380 | ||||||
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohawk Power Corp. Proj), Ser 2004A (Insured by Capital Assurance, Inc.) (Auction rate), | ||||||||
3.088%, 7–1–29 (A) | 1,280 | 1,293 | ||||||
NY State Enrg Research and Dev Auth, Fac Rev Bonds (Consolidated Edison Co. of NY, Inc. Proj), Sub Ser 1999A-1 (Insured by AMBAC) (Auction rate), | ||||||||
1.365%, 5–1–34 (A) | 2,000 | 1,865 | ||||||
NYC GO Bonds, Fiscal 2014 Ser G, | ||||||||
5.000%, 8–1–30 | 1,000 | 1,172 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
New York (Continued) | ||||||||
NYC Hsng Dev Corp., Multi-Fam Hsng Rev Bonds, Ser 2009K, | ||||||||
4.950%, 11–1–39 | $ | 415 | $ | 425 | ||||
NYC Indl Dev Agy, Pilot Rev Bonds (Yankee Stadium Proj), Ser 2009A: | ||||||||
0.000%, 3–1–25 (B) | 500 | 413 | ||||||
0.000%, 3–1–26 (B) | 500 | 398 | ||||||
0.000%, 3–1–27 (B) | 500 | 384 | ||||||
NYC Muni Water Fin Auth, Water and Sewer Sys Second Gen Resolution Rev Bonds, Ser 2015HH, | ||||||||
5.000%, 6–15–37 | 1,500 | 1,749 | ||||||
NYC Transitional Fin Auth, Bldg Aid Rev Bonds, Ser 2016S-1, | ||||||||
5.000%, 7–15–37 | 1,000 | 1,158 | ||||||
NYC Transitional Fin Auth, Future Tax Secured Tax-Exempt Sub Bonds, Ser 2013I, | ||||||||
5.000%, 5–1–29 | 400 | 469 | ||||||
Port Auth of NY & NJ Consolidated Bonds, One Hundred Fifty-Second Ser (Insured by BHAC), | ||||||||
5.750%, 11–1–30 | 500 | 514 | ||||||
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013TE, | ||||||||
5.000%, 12–15–31 | 1,500 | 1,784 | ||||||
|
| |||||||
18,134 | ||||||||
|
| |||||||
North Carolina – 0.5% | ||||||||
NC Eastn Muni Power Agy, Power Sys Rev Bonds, Ser 2008C, | ||||||||
6.000%, 1–1–19 | 70 | 73 | ||||||
NC Tpk Auth, Triangle Expressway Sys Rev Bonds, Ser 2009A, | ||||||||
0.000%, 1–1–37 (B) | 500 | 243 | ||||||
Oak Island, NC, Enterprise Sys Rev Bonds, Ser 2009, | ||||||||
6.000%, 6–1–34 | 500 | 541 | ||||||
|
| |||||||
857 | ||||||||
|
| |||||||
Ohio – 0.5% | ||||||||
OH Air Quality Dev Auth, Envirnmt Impvt Rev Bonds (Buckeye Power, Inc. Proj), Ser 2010, | ||||||||
5.750%, 12–1–30 | 500 | 567 | ||||||
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (NW OH Bond Fund) (Midwest Terminals Proj), Ser 2007C, | ||||||||
6.000%, 11–15–27 | 350 | 351 | ||||||
|
| |||||||
918 | ||||||||
|
| |||||||
Oklahoma – 0.5% | ||||||||
Grand River Dam Auth, Rev Bonds, Ser 2008A (Insured by BHAC), | ||||||||
5.000%, 6–1–18 | 905 | 930 | ||||||
|
| |||||||
Oregon – 0.8% | ||||||||
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2009A, | ||||||||
5.500%, 7–15–35 | 250 | 270 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Oregon (Continued) | ||||||||
Port of Portland, OR, Portland Intl Arpt Rfdg Rev Bonds, Ser Twenty-Three, | ||||||||
5.000%, 7–1–34 | $ | 1,000 | $ | 1,158 | ||||
|
| |||||||
1,428 | ||||||||
|
| |||||||
Pennsylvania – 4.0% | ||||||||
Dauphin Cnty Gen Auth, Hlth Sys Rev Bonds (Pinnacle Hlth Sys Proj), Ser 2009A, | ||||||||
6.000%, 6–1–36 | 600 | 649 | ||||||
Lycoming Cnty Auth, Hlth Sys Rev Bonds (Susquehanna Hlth Sys Proj), Ser 2009A, | ||||||||
5.750%, 7–1–39 | 500 | 537 | ||||||
PA Auth for Indl Dev, Rev Bonds (MaST Charter Sch Proj), Ser 2010, | ||||||||
6.000%, 8–1–35 | 750 | 852 | ||||||
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 | 551 | ||||||
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009D, | ||||||||
5.500%, 12–1–41 | 750 | 818 | ||||||
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2010 B-2, | ||||||||
5.750%, 12–1–28 | 1,500 | 1,717 | ||||||
PA Tpk Comsn, Tpk Sub Rev Rfdg Bonds, Ser 2016, | ||||||||
5.000%, 6–1–38 | 1,000 | 1,116 | ||||||
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011, | ||||||||
7.250%, 12–15–31 | 400 | 449 | ||||||
Philadelphia, PA, GO Rfdg Bonds, Ser 2008A (Insured by AGM), | ||||||||
5.250%, 12–15–24 | 445 | 468 | ||||||
|
| |||||||
7,157 | ||||||||
|
| |||||||
Rhode Island – 0.1% | ||||||||
RI Student Loan Auth, Student Loan Prog Rev Bonds, Sr Ser 2008A, | ||||||||
5.250%, 12–1–18 | 230 | 232 | ||||||
|
| |||||||
Tennessee – 0.8% | ||||||||
Memphis-Shelby Cnty Arpt Auth, Arpt Rfdg Rev Bonds, Ser 2010B, | ||||||||
5.750%, 7–1–25 | 750 | 833 | ||||||
The Hlth, Edu and Hsng Fac Board of Shelby, TN, Rev Bonds (Methodist Le Bonheur Hlthcare), Ser 2008C, | ||||||||
5.250%, 6–1–18 | 500 | 514 | ||||||
|
| |||||||
1,347 | ||||||||
|
| |||||||
Texas – 7.5% | ||||||||
Arlington, TX, Spl Tax Rev Bonds, Ser 2008 (Insured by BHAC), | ||||||||
5.000%, 8–15–18 | 300 | 311 | ||||||
Austin, TX, Arpt Sys Rev Bonds (Travis, Williamson and Hays Cntys), Ser 2014, | ||||||||
5.000%, 11–15–39 | 1,000 | 1,117 |
98 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Texas (Continued) | ||||||||
Board of Regents, TX State Univ Sys, Rev Fin Sys Rev Bonds, Ser 2008, | ||||||||
5.250%, 3–15–19 | $ | 355 | $ | 362 | ||||
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Rfdg Bonds, Ser 2009A, | ||||||||
9.250%, 3–1–24 | 500 | 552 | ||||||
Clifton Higher Edu Fin Corp., Edu Rev Bonds (IDEA Pub Sch), Ser 2011, | ||||||||
5.750%, 8–15–41 | 500 | 583 | ||||||
Clifton Higher Edu Fin Corp., Edu Rev Bonds (Uplift Edu), Ser 2014A, | ||||||||
4.250%, 12–1–34 | 1,000 | 1,018 | ||||||
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A, | ||||||||
6.500%, 5–15–31 | 1,000 | 1,185 | ||||||
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2012A, | ||||||||
5.000%, 7–1–32 | 500 | 554 | ||||||
Howard Cnty, TX, GO Bonds, Ser 2008, | ||||||||
4.650%, 2–15–24 | 505 | 512 | ||||||
Lower Colorado River Auth, Rfdg Rev Bonds, Ser 2008A, | ||||||||
5.750%, 5–15–23 | 500 | 515 | ||||||
Mission Econ Dev Corp., Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff LLC Proj), Ser 2011, | ||||||||
5.625%, 12–1–17 | 150 | 150 | ||||||
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008D, | ||||||||
0.000%, 1–1–30 (B) | 2,000 | 1,377 | ||||||
North TX Twy Auth, Sys Rev Rfdg Bonds (First Tier Current Int Bonds), Ser 2008A, | ||||||||
6.000%, 1–1–25 | 500 | 506 | ||||||
Prosper, TX (Collin Cnty), Combination Tax and Rev Cert of Oblig, Ser 2008, | ||||||||
5.500%, 2–15–20 | 500 | 509 | ||||||
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 | 250 | ||||||
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2015A, | ||||||||
5.250%, 11–15–35 | 400 | 416 | ||||||
Trinity River Auth of TX (Tarrant Cnty Water Proj), Impvt Rev Bonds, Ser 2008, | ||||||||
5.750%, 2–1–26 | 325 | 330 |
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 | $ | 500 | $ | 556 | ||||
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 | 855 | ||||||
TX Pub Fin Auth, TX Southn Univ Rev Fin Sys Bonds, Ser 2016 (Insured by BAMAC), | ||||||||
4.000%, 5–1–33 | 500 | 526 | ||||||
TX Trans Comsn, Cent TX Tpk Sys Rev Bonds (First Tier Rev Rfdg Bonds), Ser 2015-B, | ||||||||
5.000%, 8–15–37 | 1,000 | 1,123 | ||||||
|
| |||||||
13,307 | ||||||||
|
| |||||||
Utah – 0.3% | ||||||||
Midvale, UT, Muni Bldg Auth Lease Rev Bonds (City Hall Proj), Ser 2012, | ||||||||
2.000%, 10–15–17 | 465 | 465 | ||||||
|
| |||||||
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 | 533 | ||||||
VA Pub Bldg Auth, Pub Fac Rev Bonds, Ser 2008B, | ||||||||
5.250%, 8–1–22 | 250 | 259 | ||||||
|
| |||||||
792 | ||||||||
|
| |||||||
Washington – 0.2% | ||||||||
Port of Seattle, Intermediate Lien Rev Rfdg Bonds, Ser 2015B, | ||||||||
5.000%, 3–1–35 | 300 | 349 | ||||||
|
| |||||||
West Virginia – 0.3% | ||||||||
WV Hosp Fin Auth, Hosp Rev Rfdg and Impvt Bonds (WV Utd Hlth Sys Oblig Group), Ser 2009C, | ||||||||
5.500%, 6–1–39 | 500 | 537 | ||||||
|
| |||||||
Wisconsin – 2.0% | ||||||||
Milwaukee Cnty, WI, Arpt Rev Rfdg Bonds, Ser 2010B, | ||||||||
5.000%, 12–1–19 | 1,000 | 1,079 | ||||||
WI Hlth and Edu Fac Auth, Rev Bonds (Ascension Sr Credit Group), Ser 2016A, | ||||||||
4.000%, 11–15–33 | 1,000 | 1,048 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Wisconsin (Continued) |
| |||||||
WI Hlth and Edu Fac Auth, Rev Bonds (Med College of WI, Inc.), Ser 2016, | ||||||||
5.000%, 12–1–41 | $ | 750 | $ | 855 | ||||
WI Hlth and Edu Fac Auth, Rev Bonds (Pro Hlth Care, Inc. Oblig Group), Ser 2009, | ||||||||
6.625%, 2–15–39 | 500 | 538 | ||||||
|
| |||||||
3,520 | ||||||||
|
| |||||||
Wyoming – 0.3% | ||||||||
WY Muni Power Agy, Power Supply Sys Rev Bonds, Ser 2008A, | ||||||||
5.250%, 1–1–23 | 500 | 506 | ||||||
|
| |||||||
TOTAL MUNICIPAL BONDS – 92.5% |
| $ | 164,276 | |||||
(Cost: $154,857) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Master Note – 1.6% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (C) | 2,891 | 2,891 | ||||||
|
| |||||||
Municipal Obligations – 4.6% | ||||||||
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.) (BVAL plus 13 bps), | ||||||||
0.960%, 10–7–17 (C) | 1,650 | 1,650 | ||||||
Minneapolis, MN, Hsng Dev, Rfdg Rev Bonds (One Ten Grant Proj), Ser 1989 (GTD by FNMA) (BVAL plus 8 bps), | ||||||||
0.920%, 10–7–17 (C) | 5,500 | 5,500 | ||||||
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004 (GTD by U.S. Bank N.A.) (BVAL plus 17 bps), | ||||||||
0.940%, 10–1–17 (C) | 955 | 955 | ||||||
|
| |||||||
8,105 | ||||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 6.2% |
| $ | 10,996 | |||||
(Cost: $10,996) | ||||||||
TOTAL INVESTMENT SECURITIES – 98.7% |
| $ | 175,272 | |||||
(Cost: $165,853) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES(D) – 1.3% |
| 2,226 | ||||||
NET ASSETS – 100.0% |
| $ | 177,498 |
Notes to Schedule of Investments
(A) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description. |
(B) | Zero coupon bond. |
2017 | SEMIANNUAL REPORT | 99 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
(D) | Cash of $99 has been pledged as collateral on open futures contracts. |
The following futures contracts were outstanding at September 30, 2017 (contracts unrounded):
Description | Type | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation | ||||||||||||
U.S. Treasury Long Bond | Short | 30 | 12–29–17 | 3,000 | $(4,584) | $ | 81 | |||||||||||
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. See Note 3 to the Financial Statements for further information regarding fair value measurement.
Level 1 | Level 2 | Level 3 | ||||||||||
Assets | ||||||||||||
Investments in Securities | ||||||||||||
Municipal Bonds | $ | — | $ | 164,276 | $ | — | ||||||
Short-Term Securities | — | 10,996 | — | |||||||||
Total | $ | — | $ | 175,272 | $ | — | ||||||
Futures Contracts | $ | 81 | $ | — | $ | — |
During the period ended September 30, 2017, 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.
BVAL = Bloomberg Valuation Benchmark Municipal Curve
CR = Custodial Receipts
FHA = Federal Housing Administration
FHLMC = Federal Home Loan Mortgage Corp.
FNMA = Federal National Mortgage Association
GNMA = Government National Mortgage Association
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
SIFMA = Securities Industry and Financial Markets Association
See Accompanying Notes to Financial Statements.
100 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY MUNICIPAL HIGH INCOME FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 0.3% | |||
Bonds | 94.4% | |||
Municipal Bonds | 94.1% | |||
Corporate Debt Securities | 0.3% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 5.3% |
Lipper Rankings
Category: High Yield Municipal Debt Funds | Rank | Percentile | ||||
1 Year | 150/159 | 94 | ||||
3 Year | 123/138 | 89 | ||||
5 Year | 97/111 | 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.
Quality Weightings
Investment Grade | 29.9% | |||
AA | 2.3% | |||
A | 6.3% | |||
BBB | 21.3% | |||
Non-Investment Grade | 64.5% | |||
BB | 15.5% | |||
B | 7.4% | |||
CCC | 1.4% | |||
Below CCC | 0.0% | |||
Non-rated | 40.2% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Equities | 5.6% |
Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s. For securities not rated by Moody’s, ratings are obtained from Fitch. 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. |
2017 | SEMIANNUAL REPORT | 101 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Education Services – 0.3% |
| |||||||
1155 Island Avenue LLC (A)(I) | 6,578 | $ | 1,841 | |||||
|
| |||||||
TOTAL COMMON STOCKS – 0.3% | $ | 1,841 | ||||||
(Cost: $1,074) | ||||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Consumer Discretionary | ||||||||
Education Services – 0.3% | ||||||||
1155 Island Avenue LLC, | ||||||||
10.000%, 12–11–24 (A) | $ | 311 | 311 | |||||
1155 Island Avenue LLC (10.000% Cash or 12.500% PIK), | ||||||||
10.000%, 12–11–24 (A)(B) | 2,960 | 2,960 | ||||||
|
| |||||||
3,271 | ||||||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 0.3% | $ | 3,271 | ||||||
(Cost: $2,924) | ||||||||
MUNICIPAL BONDS | ||||||||
Alabama – 2.5% | ||||||||
AL 21st Century Auth, Tob Stlmt Rev Bonds, Ser 2012-A, | ||||||||
5.000%, 6–1–21 | 1,000 | 1,120 | ||||||
DC Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2006A, | ||||||||
0.000%, 6–15–46 (C) | 26,000 | 3,796 | ||||||
Fairfield, AL, GO Warrants, Ser 2012, | ||||||||
6.000%, 6–1–37 | 8,485 | 8,883 | ||||||
Jefferson Cnty, AL, Swr Rev Bonds, Ser 2013-D, | ||||||||
6.500%, 10–1–53 | 7,500 | 8,954 | ||||||
|
| |||||||
22,753 | ||||||||
|
| |||||||
Alaska – 0.7% | ||||||||
Northn Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2006A Sr Cur Int Bonds, | ||||||||
5.000%, 6–1–46 | 7,000 | 6,831 | ||||||
|
| |||||||
American Samoa – 0.5% | ||||||||
American Samoa Econ Dev Auth, Gen Rev and Rfdg Bonds, Ser 2015A, | ||||||||
6.625%, 9–1–35 | 5,000 | 5,028 | ||||||
|
| |||||||
Arizona – 1.3% | ||||||||
Indl Dev Auth of Pima, Edu Rev Bonds (Noah Webster Sch - Pima Proj), Tax-Exempt Ser 2014A, | ||||||||
7.000%, 12–15–43 | 1,500 | 1,650 | ||||||
Indl Dev Auth of Tempe, AZ, Rev Rfdg Bonds (Friendship Vlg of Tempe), Ser 2012A: | ||||||||
6.000%, 12–1–27 | 2,390 | 2,590 | ||||||
6.250%, 12–1–42 | 2,150 | 2,303 | ||||||
6.250%, 12–1–46 | 1,000 | 1,069 | ||||||
Indl Dev Auth of Yavapai, Edu Rev Bonds (AZ Agribusiness and Equine Ctr, Inc. Proj), Ser 2011, | ||||||||
7.875%, 3–1–42 | 3,500 | 3,927 | ||||||
|
| |||||||
11,539 | ||||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
California – 10.4% | ||||||||
Adelanto Pub Auth, Fixed Rate Rfdg Rev Bonds (Util Sys Proj), Ser 2009A, | ||||||||
6.750%, 7–1–39 | $ | 4,000 | $ | 4,283 | ||||
CA Muni Fin Auth, Charter Sch Rev Bonds (Palmdale Aerospace Academy Proj), Ser 2016A, | ||||||||
5.000%, 7–1–41 | 1,750 | 1,824 | ||||||
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Taxable Ser 2009B, | ||||||||
8.000%, 10–1–22 | 400 | 456 | ||||||
CA Muni Fin Auth, Edu Fac Rev Bonds (Literacy First Proj), Ser 2010B, | ||||||||
6.000%, 9–1–30 | 2,040 | 2,190 | ||||||
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A, | ||||||||
5.000%, 10–1–42 | 1,200 | 1,249 | ||||||
CA Statewide Cmnty Dev Auth, Edu Fac Rev Bonds (Independence Support LLC Proj), Ser 2015, | ||||||||
7.000%, 6–1–45 | 4,000 | 3,501 | ||||||
CA Statewide Cmnty Dev Auth, Rev Bonds (Lancer Plaza Proj), Ser 2013: | ||||||||
5.625%, 11–1–33 | 1,400 | 1,535 | ||||||
5.875%, 11–1–43 | 1,890 | 2,083 | ||||||
CA Statewide Cmnty Dev Auth, Rev Bonds (Loma Linda Univ Med Ctr), Ser 2016A, | ||||||||
5.000%, 12–1–46 | 3,000 | 3,282 | ||||||
CA Statewide Cmnty Dev Auth, Sr Living Rev Bonds (Southn CA Presbyterian Homes), Ser 2009: | ||||||||
6.625%, 11–15–24 | 2,490 | 2,745 | ||||||
7.000%, 11–15–29 | 2,000 | 2,199 | ||||||
7.250%, 11–15–41 | 6,000 | 6,569 | ||||||
CA Various Purp GO Bonds, | ||||||||
6.000%, 4–1–35 | 500 | 537 | ||||||
Cert of Part, Oro Grande Elem Sch Dist, Ser 2013, | ||||||||
5.125%, 9–15–42 | 2,760 | 2,987 | ||||||
Foothill/Eastn Trans Corridor Agy, Toll Road Rfdg Rev Bonds, Ser 2013B-1 (Insured by AGM), | ||||||||
3.950%, 1–15–53 | 1,500 | 1,497 | ||||||
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007A-1: | ||||||||
5.000%, 6–1–33 | 2,245 | 2,243 | ||||||
5.125%, 6–1–47 | 13,140 | 13,121 | ||||||
Palamar Hlth, Rfdg Rev Bonds, Ser 2016, | ||||||||
4.000%, 11–1–39 | 5,700 | 5,675 | ||||||
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part, | ||||||||
6.000%, 11–1–41 | 3,000 | 3,247 | ||||||
Redev Agy of San Buenaventura, Merged San Buenaventura Redev Proj, 2008 Tax Alloc Bonds, | ||||||||
8.000%, 8–1–38 | 100 | 101 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
California (Continued) | ||||||||
San Buenaventura Rev Bonds (Cmnty Mem Hlth Sys), Ser 2011: | ||||||||
8.000%, 12–1–26 | $ | 1,400 | $ | 1,724 | ||||
8.000%, 12–1–31 | 9,400 | 11,332 | ||||||
San Mateo Cmnty Fac Dist No. 2008-1 (Bay Meadows), Spl Tax Bonds, Ser 2012, | ||||||||
6.000%, 9–1–42 | 8,000 | 8,902 | ||||||
Tob Securitization Auth of Southn CA, Tob Stlmt Asset-Bkd Bonds (San Diego Cnty Tob Asset Securitization Corp.), Ser 2006A Sr Current Int Bonds, | ||||||||
5.000%, 6–1–37 | 12,395 | 12,391 | ||||||
|
| |||||||
95,673 | ||||||||
|
| |||||||
Colorado – 3.5% |
| |||||||
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2008, | ||||||||
6.000%, 10–1–40 | 5,715 | 5,845 | ||||||
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2010, | ||||||||
6.125%, 10–1–40 | 5,000 | 5,382 | ||||||
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical Academy Proj), Ser 2008A, | ||||||||
7.400%, 12–1–38 | 85 | 91 | ||||||
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 | 558 | ||||||
5.000%, 9–1–36 | 1,000 | 1,005 | ||||||
5.000%, 9–1–46 | 1,390 | 1,389 | ||||||
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 | 3,651 | ||||||
CO Hlth Fac Auth, Rev Bonds (CO Sr Residences Proj), Ser 2012: | ||||||||
6.750%, 6–1–32 (D) | 2,610 | 2,048 | ||||||
7.125%, 6–1–47 (D) | 3,000 | 2,353 | ||||||
CO Hlth Fac Auth, Rev Bonds (Total Longterm Care Natl Oblig Group Proj), Ser 2010A, | ||||||||
6.250%, 11–15–40 | 1,250 | 1,444 | ||||||
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax GO Rfdg and Impvt Bonds, Ser 2016A, | ||||||||
5.000%, 12–1–45 | 1,250 | 1,273 | ||||||
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax Subordinate GO Bonds, Ser 2016B, | ||||||||
7.250%, 12–15–45 | 500 | 498 | ||||||
Littleton Vlg Metro Dist No. 2, Ltd. Tax GO and Spl Rev Bonds, Ser 2015, | ||||||||
5.375%, 12–1–45 | 1,700 | 1,715 |
102 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Colorado (Continued) |
| |||||||
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010, | ||||||||
6.500%, 1–15–30 | $ | 3,000 | $ | 3,341 | ||||
Sierra Ridge Metro Dist No. 2, Ltd. Tax GO Bonds, Ser 2016A, | ||||||||
5.500%, 12–1–46 | 1,500 | 1,531 | ||||||
|
| |||||||
32,124 | ||||||||
|
| |||||||
Connecticut – 0.3% | ||||||||
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 | 1,013 | ||||||
Harbor Point Infra Impvt Dist (Harbor Point Proj), Spl Oblig Rev Bonds, Ser 2010A, | ||||||||
7.875%, 4–1–39 | 2,000 | 2,212 | ||||||
|
| |||||||
3,225 | ||||||||
|
| |||||||
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 (C) | 1,000 | 1,176 | ||||||
|
| |||||||
Florida – 4.3% | ||||||||
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009: | ||||||||
6.500%, 11–1–29 | 875 | 928 | ||||||
6.750%, 11–1–39 | 2,060 | 2,189 | ||||||
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2014A, | ||||||||
8.250%, 1–1–49 (D) | 3,000 | 2,486 | ||||||
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2016A, | ||||||||
5.750%, 1–1–50 (D) | 645 | 603 | ||||||
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2016B, | ||||||||
7.000%, 1–1–35 (D) | 555 | 543 | ||||||
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2010A: | ||||||||
6.000%, 9–15–40 | 4,000 | 4,158 | ||||||
6.125%, 6–15–43 | 5,500 | 5,899 | ||||||
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 | 5,571 | ||||||
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2015A, | ||||||||
6.000%, 6–15–35 | 2,000 | 2,120 | ||||||
FL Dev Fin Corp., Taxable Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2012B, | ||||||||
7.500%, 6–15–18 | 300 | 303 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Florida (Continued) | ||||||||
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 | $ | 6,519 | ||||
Miami-Dade Cnty Indl Dev Auth, Rev Bonds (Youth Co-Op Charter Sch Proj), Ser 2015A, | ||||||||
6.000%, 9–15–45 | 3,250 | 3,390 | ||||||
Mid-Bay Bridge Auth, 1st Sr Lien Rev Bonds, Ser 2015A, | ||||||||
5.000%, 10–1–40 | 2,000 | 2,237 | ||||||
Osceola Cnty, Expressway Sys Rev Bonds (Poinciana Prkwy Proj), Ser 2014A, | ||||||||
5.375%, 10–1–47 | 2,000 | 2,154 | ||||||
|
| |||||||
39,216 | ||||||||
|
| |||||||
Georgia – 1.3% | ||||||||
Cobb Cnty, GA, Dev Auth Sr Living Rfdg Rev Bonds (Provident Vlg Creekside Proj), Ser 2016A: | ||||||||
6.000%, 7–1–36 | 1,250 | 1,173 | ||||||
6.000%, 7–1–51 | 2,000 | 1,821 | ||||||
Greene Cnty Dev Auth, GA, First Mtg Rev Bonds (Glen-I LLC Proj), Ser 2015A, | ||||||||
7.250%, 1–1–46 | 9,000 | 9,091 | ||||||
|
| |||||||
12,085 | ||||||||
|
| |||||||
Guam – 0.6% |
| |||||||
Cert of Part (JFK High Sch Proj), Dept of Edu, GU, Ser 2010A: | ||||||||
6.625%, 12–1–30 | 1,400 | 1,464 | ||||||
6.875%, 12–1–40 | 3,500 | 3,684 | ||||||
|
| |||||||
5,148 | ||||||||
|
| |||||||
Hawaii – 0.8% |
| |||||||
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 | 4,894 | ||||||
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 | 2,048 | ||||||
|
| |||||||
6,942 | ||||||||
|
| |||||||
Idaho – 0.2% |
| |||||||
ID Hsng and Fin Assoc (Compass Pub Charter Sch, Inc. Proj), Ser 2010A: | ||||||||
6.250%, 7–1–40 | 1,000 | 1,044 | ||||||
6.250%, 7–1–45 | 550 | 574 | ||||||
|
| |||||||
1,618 | ||||||||
|
| |||||||
Illinois – 10.3% |
| |||||||
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A, | ||||||||
5.700%, 5–1–36 | 4,160 | 4,160 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Illinois (Continued) |
| |||||||
Cert of Part, Metra Market of Chicago LLC Redev Proj, Ser A, | ||||||||
6.870%, 2–15–24 | $ | 1,000 | $ | 1,003 | ||||
Chicago Midway Arpt, Second Lien Rev Rfdg Bonds, Ser 2013B, | ||||||||
5.000%, 1–1–35 | 3,000 | 3,334 | ||||||
Chicago Multi-Fam Hsng, Rev Bonds (Goldblatts Supportive Living Proj), Ser 2013, | ||||||||
6.125%, 12–1–43 | 6,000 | 5,314 | ||||||
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Bonds, Ser 2015D, | ||||||||
5.000%, 1–1–46 | 2,000 | 2,248 | ||||||
Chicago O’Hare Intl Arpt, Gen Arpt Third Lien Rev Bonds, Ser 2011A: | ||||||||
5.750%, 1–1–39 | 1,000 | 1,143 | ||||||
Cook Cnty, IL, Recovery Zone Fac Rev Bonds (Navistar Intl Corp. Proj), Ser 2010, | ||||||||
6.500%, 10–15–40 | 2,000 | 2,150 | ||||||
Fairview Heights, IL, Tax Incr Rfdg Rev Bonds (Shoppes at St. Clair Square Redev Proj), Ser 2009A, | ||||||||
8.000%, 12–1–28 | 45 | 46 | ||||||
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009, | ||||||||
6.500%, 4–1–44 | 8,000 | 8,552 | ||||||
IL Fin Auth, Rev Bonds (Admiral at the Lake Proj), Ser 2010A, | ||||||||
8.000%, 5–15–40 | 13,000 | 14,366 | ||||||
IL Fin Auth, Rev Bonds (Lutheran Home and Svs Oblig Group), Ser 2012, | ||||||||
5.625%, 5–15–42 | 5,300 | 5,503 | ||||||
IL Fin Auth, Rev Bonds (Navistar Intl Corp. Proj), Ser 2010, | ||||||||
6.500%, 10–15–40 | 6,500 | 6,987 | ||||||
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2009, | ||||||||
7.875%, 3–1–32 | 500 | 511 | ||||||
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2010, | ||||||||
7.500%, 3–1–32 | 1,500 | 1,526 | ||||||
SW IL Dev Auth, Local Govt Prog Rev Bonds (City of Belleville-Carlyle/Green Mount Redev Proj), Ser 2011A, | ||||||||
7.000%, 7–1–41 | 6,000 | 6,159 | ||||||
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2008, | ||||||||
7.000%, 12–1–22 | 1,410 | 1,492 | ||||||
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2009, | ||||||||
8.000%, 1–15–22 | 165 | 167 | ||||||
SW IL Dev Auth, Local Govt Prog Rev Rfdg Bonds (Granite City Proj), Ser 2012, | ||||||||
5.250%, 3–1–23 | 3,365 | 3,420 |
2017 | SEMIANNUAL REPORT | 103 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Illinois (Continued) |
| |||||||
Upper IL River Vly Dev Auth (Pleasant View Luther Home Proj), Rev Bonds, Ser 2010: | ||||||||
7.250%, 11–15–40 | $ | 1,100 | $ | 1,148 | ||||
7.375%, 11–15–45 | 1,500 | 1,563 | ||||||
Upper IL River Vly Dev Auth, Multi-Fam Hsng Rev Bonds (Deer Park of Huntley Proj), Ser 2012, | ||||||||
6.500%, 12–1–32 | 4,930 | 5,113 | ||||||
Vlg of Bridgeview, Cook Cnty, IL, GO Bonds, Ser 2015A: | ||||||||
5.750%, 12–1–35 | 2,705 | 2,523 | ||||||
5.625%, 12–1–41 | 3,365 | 3,035 | ||||||
Vlg of Bridgeview, Cook Cnty, IL, GO Rfdg Bonds, Ser 2014A, | ||||||||
5.500%, 12–1–43 | 1,500 | 1,369 | ||||||
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 | 1,501 | ||||||
Vlg of Riverdale, Cook Cnty, IL, Unlimited Tax GO Bonds, Ser 2011, | ||||||||
8.000%, 10–1–36 | 9,785 | 10,440 | ||||||
|
| |||||||
94,773 | ||||||||
|
| |||||||
Indiana – 3.7% |
| |||||||
City of Carmel, IN, Rev Bonds, Ser 2012A: | ||||||||
7.000%, 11–15–27 | 1,575 | 1,728 | ||||||
7.000%, 11–15–32 | 2,000 | 2,179 | ||||||
7.125%, 11–15–42 | 7,500 | 8,179 | ||||||
IN Fin Auth, Midwestn Disaster Relief Rev Bonds (OH Vly Elec Corp. Proj), Ser 2012A, | ||||||||
5.000%, 6–1–39 | 7,000 | 7,126 | ||||||
Lake Station 2008 Bldg Corp., Lake Station, IN, First Mtg Bonds, Ser 2010, | ||||||||
6.000%, 7–15–27 | 3,170 | 3,375 | ||||||
Terre Haute, IN, Rev Bonds (Westminister Vlg Proj), Ser 2012, | ||||||||
6.000%, 8–1–39 | 5,000 | 5,054 | ||||||
Whitestown, IN, Econ Dev Tax Incr Rev Bonds (Perry Indl Park and Whitestown Crossing Proj), Ser 2010A, | ||||||||
7.000%, 2–1–30 | 1,880 | 2,134 | ||||||
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Standard Avenue Proj), Ser 2006, | ||||||||
5.350%, 1–15–27 | 2,725 | 2,725 | ||||||
Whiting, IN, Redev Dist Tax Incr Rev Bonds, Ser 2016, | ||||||||
4.000%, 1–15–32 | 1,600 | 1,508 | ||||||
|
| |||||||
34,008 | ||||||||
|
| |||||||
Kansas – 1.5% |
| |||||||
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009: | ||||||||
6.250%, 9–1–24 | 1,145 | 1,192 | ||||||
7.000%, 9–1–38 | 500 | 528 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Kansas (Continued) |
| |||||||
Atchison, KS, Hosp Rev Bonds (Atchison Hosp Assoc), Ser 2009 (Bloomberg Fair Value Yield Index for the Qualified “A” Rated Municipal Index 5-Year Maturity plus 290 bps), | ||||||||
4.480%, 9–1–30 (E) | $ | 1,000 | $ | 1,018 | ||||
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 | 4,033 | ||||||
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 | 4,180 | ||||||
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 | 3,038 | ||||||
|
| |||||||
13,989 | ||||||||
|
| |||||||
Kentucky – 0.7% |
| |||||||
KY Pub Trans Infra Auth, First Tier Toll Rev Bonds, Ser 2013A, | ||||||||
5.750%, 7–1–49 | 4,000 | 4,457 | ||||||
Murray, KY, Hosp Fac Rev Bonds (Murray-Calloway Cnty Pub Hosp Corp. Proj), Ser 2010, | ||||||||
6.375%, 8–1–40 | 2,000 | 2,126 | ||||||
|
| |||||||
6,583 | ||||||||
|
| |||||||
Louisiana – 0.5% |
| |||||||
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 | 5,009 | ||||||
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj - Phase IIA), Ser 2014A, | ||||||||
8.375%, 7–1–39 (D) | 9,379 | — | * | |||||
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj), Ser 2013B, | ||||||||
10.500%, 7–1–39 (D) | 4,306 | — | * | |||||
|
| |||||||
5,009 | ||||||||
|
| |||||||
Maryland – 0.1% |
| |||||||
MD Econ Dev Corp., Econ Dev Rev Bonds (Terminal Proj), Ser B, | ||||||||
5.750%, 6–1–35 | 500 | 535 | ||||||
|
| |||||||
Massachusetts – 1.5% |
| |||||||
MA Port Auth, Spl Fac Rev Bonds (Delta Air Lines, Inc. Proj), Ser 2001B (Auction Rate Sec) (Insured by AMBAC) (BMA Index*2.65), | ||||||||
2.173%, 1–1–31 (E) | 15,000 | 13,800 | ||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Michigan – 2.1% |
| |||||||
Detroit, MI, GO Bonds, Ser 2004-A (1) (Insured by AMBAC), | ||||||||
5.250%, 4–1–23 | $ | 220 | $ | 221 | ||||
Econ Dev Corp. of Oakland Cnty, Ltd. Oblig Rev Rfdg Bonds (The Roman Catholic Archdiocese of Detroit), Ser 2011, | ||||||||
6.500%, 12–1–20 | 3,485 | 3,613 | ||||||
MI Fin Auth, Hosp Rev and Rfdg Bonds (Presbyterian Vlg of MI), Ser 2015, | ||||||||
5.250%, 11–15–35 | 3,000 | 3,135 | ||||||
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev and Rev Rfdg Bonds (MI Technical Academy Proj), Ser 2012: | ||||||||
7.100%, 10–1–31 (D) | 1,000 | 240 | ||||||
7.450%, 10–1–41 (D) | 2,000 | 480 | ||||||
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev Bonds (Hanley Intl Academy, Inc. Proj), Ser 2010A, | ||||||||
6.125%, 9–1–40 | 4,535 | 4,711 | ||||||
MI Pub Edu Fac Auth, Ltd. Oblig Rev Bonds (Old Redford Academy Proj), Ser 2005A, | ||||||||
5.875%, 12–1–30 | 1,720 | 1,720 | ||||||
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Ser 2008C, | ||||||||
0.000%, 6–1–58 (C) | 50,000 | 1,232 | ||||||
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Sr Current Int Bonds, Ser 2007A, | ||||||||
5.125%, 6–1–22 | 3,635 | 3,619 | ||||||
|
| |||||||
18,971 | ||||||||
|
| |||||||
Minnesota – 0.4% |
| |||||||
Minneapolis Hlth Care Sys, Rev Bonds (Fairview Hlth Svc), Ser 2008B, | ||||||||
6.500%, 11–15–38 | 3,675 | 3,880 | ||||||
|
| |||||||
Missouri – 1.9% |
| |||||||
Arnold, MO, Real Ppty Tax Incr Rev Bonds (Arnold Triangle Redev Proj), Ser 2009A, | ||||||||
7.750%, 5–1–28 | 395 | 424 | ||||||
Belton, MO, Tax Incr Rev Bonds (Belton Marketplace Redev Proj), Ser 2012, | ||||||||
6.375%, 12–1–29 | 820 | 829 | ||||||
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A, | ||||||||
6.125%, 12–1–36 | 200 | 155 | ||||||
Grindstone Plaza Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A: | ||||||||
5.250%, 10–1–21 | 250 | 246 | ||||||
5.400%, 10–1–26 | 385 | 364 | ||||||
5.500%, 10–1–31 | 425 | 389 | ||||||
5.550%, 10–1–36 | 325 | 289 | ||||||
Jennings, MO, Tax Incr and Cmnty Impvt Rfdg Rev Bonds (Northland Redev Area Proj), Ser 2006, | ||||||||
5.000%, 11–1–23 | 1,060 | 1,015 |
104 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Missouri (Continued) |
| |||||||
Lakeside 370 Levee Dist (St. Charles Cnty, MO), Levee Dist Impvt Bonds, Ser 2008: | ||||||||
0.000%, 4–1–55 (C) | $ | 988 | $ | 142 | ||||
5.750%, 4–1–55 | 621 | 566 | ||||||
Land Clearance for Redev Auth of St. Louis, Recovery Zone Fac Bonds (Kiel Opera House Proj), Ser 2010B, | ||||||||
7.000%, 9–1–35 | 885 | 904 | ||||||
Lee’s Summit, MO, Tax Incr Rev Bonds (Summit Fair Proj), Ser 2011, | ||||||||
7.250%, 4–1–30 | 5,000 | 5,190 | ||||||
Meadows Trans Dev Dist (Lake Saint Louis, MO), Ser 2010, | ||||||||
5.400%, 5–1–35 | 660 | 667 | ||||||
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) | 750 | 362 | ||||||
0.000%, 7–15–37 (C) | 1,500 | 692 | ||||||
Tax Incr Fin Comsn of Kansas City, MO, Tax Incr Rev Bonds (Brywood Ctr Proj), Ser 2010A, | ||||||||
8.000%, 4–1–33 (D) | 3,950 | 1,381 | ||||||
The Indl Dev Auth of Lee’s Summit, MO, Infra Fac Rev Bonds (Kensington Farms Impvt Proj), Ser 2007, | ||||||||
5.750%, 3–1–29(D) | 1,000 | 615 | ||||||
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 | 205 | ||||||
The Indl Dev Auth of St. Joseph, MO, Hlthcare Rev Bonds (Living Cmnty of St. Joseph Proj), Ser 2002, | ||||||||
7.000%, 8–15–32 | 2,915 | 2,917 | ||||||
|
| |||||||
17,352 | ||||||||
|
| |||||||
Nebraska – 1.0% |
| |||||||
Cent Plains Enrg Proj, Gas Proj Rev Bonds (Proj No. 3), Ser 2012: | ||||||||
5.250%, 9–1–37 | 5,000 | 5,540 | ||||||
5.000%, 9–1–42 | 3,000 | 3,263 | ||||||
|
| |||||||
8,803 | ||||||||
|
| |||||||
Nevada – 0.0% |
| |||||||
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008, | ||||||||
8.000%, 12–1–38 | 265 | 287 | ||||||
|
| |||||||
New Hampshire – 0.3% |
| |||||||
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A, | ||||||||
6.875%, 7–1–41 | 2,300 | 2,571 | ||||||
|
| |||||||
New Jersey – 2.6% |
| |||||||
NJ Econ Dev Auth, Cigarette Tax Rev Rfdg Bonds, Ser 2012: | ||||||||
5.000%, 6–15–26 | 1,000 | 1,088 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
New Jersey (Continued) |
| |||||||
5.000%, 6–15–28 | $ | 1,000 | $ | 1,079 | ||||
5.000%, 6–15–29 | 500 | 537 | ||||||
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds (Univ Hosp Issue), Ser 2015A, | ||||||||
5.000%, 7–1–46 | 2,355 | 2,627 | ||||||
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007-1A, | ||||||||
5.000%, 6–1–41 | 13,750 | 13,445 | ||||||
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007-1A Sr Current Int Bonds, | ||||||||
4.750%, 6–1–34 | 5,000 | 4,887 | ||||||
|
| |||||||
23,663 | ||||||||
|
| |||||||
New Mexico – 0.3% |
| |||||||
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 | 2,986 | ||||||
|
| |||||||
New York – 6.4% |
| |||||||
Brooklyn Arena Local Dev Corp., PILOT Rev Rfdg Bonds (Barclays Ctr), Ser 2016A (Insured by AGM), | ||||||||
5.000%, 7–15–42 | 2,000 | 2,238 | ||||||
Build NYC Res Corp., Rev Bonds (Albert Einstein Sch of Medicine, Inc. Proj), Ser 2015, | ||||||||
5.500%, 9–1–45 | 2,400 | 2,642 | ||||||
Dormitory Auth, Sch Dist Rev Bond Fin Prog, Ser 2010A (Insured by AGM), | ||||||||
5.000%, 10–1–22 | 1,000 | 1,108 | ||||||
Glen Cove Local Econ Assistance Corp., Convertible Cap Apprec Rev Bonds (Garvies Point Pub Impvt Proj), Ser 2016C, | ||||||||
0.000%, 1–1–55 (C) | 5,000 | 3,808 | ||||||
MTA Hudson Rail Yards Trust Oblig, Ser 2016A, | ||||||||
5.000%, 11–15–56 | 5,000 | 5,603 | ||||||
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A2, | ||||||||
6.500%, 1–1–32 | 5,269 | 5,361 | ||||||
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A4, | ||||||||
6.700%, 1–1–49 | 9,000 | 9,158 | ||||||
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A5, | ||||||||
6.700%, 1–1–49 | 2,179 | 2,217 | ||||||
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014B, | ||||||||
5.500%, 7–1–20 | 1,466 | 1,490 |
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 | $ | 7,885 | $ | 1,314 | ||||
Nassau Cnty Tob Stlmnt Corp., Tob Stlmnt Asset-Bkd Bonds, Ser 2006A-3 Sr Current Int Bonds, | ||||||||
5.125%, 6–1–46 | 7,000 | 6,982 | ||||||
NY Liberty Dev Corp., Rev Bonds (3 World Trade Center Proj), Ser 2014, | ||||||||
5.000%, 11–15–44 | 5,000 | 5,458 | ||||||
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 | 11,770 | ||||||
|
| |||||||
59,149 | ||||||||
|
| |||||||
North Carolina – 0.2% |
| |||||||
NC Med Care Comsn, Ret Fac First Mtg Rev Bonds (Galloway Ridge Proj), Ser 2010A, | ||||||||
6.000%, 1–1–39 | 1,520 | 1,580 | ||||||
|
| |||||||
Ohio – 1.6% |
| |||||||
Cleveland-Cuyahoga Cnty Port Auth, Dev Rev Bonds (Flats East Dev Proj), Ser 2010B, | ||||||||
7.000%, 5–15–40 | 2,490 | 2,716 | ||||||
Cnty of Muskingum, OH, Hosp Fac Rev Bonds (Genesis Hlth Care Sys Oblig Group Proj), Ser 2013, | ||||||||
5.000%, 2–15–48 | 5,000 | 5,193 | ||||||
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 | 1,228 | ||||||
Greene Cnty Port Auth, Adult Svc Fac Rev Bonds (Greene, Inc. Proj), Ser 2009, | ||||||||
7.500%, 12–1–33 | 500 | 569 | ||||||
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 | 4,121 | ||||||
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (Toledo Sch for the Arts Proj), Ser 2007B, | ||||||||
5.500%, 5–15–28 | 755 | 757 | ||||||
|
| |||||||
14,584 | ||||||||
|
| |||||||
Oklahoma – 1.0% |
| |||||||
OK Cnty Fin Auth, Ret Fac Rev Bonds (Concordia Life Care Cmnty), Ser 2005: | ||||||||
6.125%, 11–15–25 | 1,860 | 1,860 | ||||||
6.000%, 11–15–38 | 7,495 | 7,325 | ||||||
|
| |||||||
9,185 | ||||||||
|
|
2017 | SEMIANNUAL REPORT | 105 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Oregon – 0.5% |
| |||||||
Hosp Fac Auth of Salem, OR, Rev Rfdg Bonds (Cap Manor, Inc.), Ser 2012, | ||||||||
6.000%, 5–15–42 | $ | 1,900 | $ | 2,075 | ||||
OR Fac Auth, Rev Bonds (Concordia Univ Proj), Ser 2010A: | ||||||||
6.125%, 9–1–30 | 885 | 1,010 | ||||||
6.375%, 9–1–40 | 1,750 | 2,010 | ||||||
|
| |||||||
5,095 | ||||||||
|
| |||||||
Pennsylvania – 6.4% |
| |||||||
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2010, | ||||||||
6.125%, 1–1–45 | 5,000 | 5,187 | ||||||
Delaware Cnty Indl Dev Auth, Charter Sch Rev Bonds (Chester Cmnty Charter Sch Proj), Ser 2010A, | ||||||||
6.125%, 8–15–40 | 11,750 | 10,734 | ||||||
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 | 2,860 | ||||||
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 | 1,086 | ||||||
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009E (SIFMA Municipal Swap Index plus 100 bps), | ||||||||
0.000%, 12–1–38 (E) | 13,000 | 16,096 | ||||||
Philadelphia Auth Indl Dev, Rev Bonds (Global Leadership Academy Charter Sch Proj), Ser 2010, | ||||||||
6.375%, 11–15–40 | 1,000 | 1,055 | ||||||
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011: | ||||||||
7.150%, 12–15–36 | 6,000 | 6,691 | ||||||
7.625%, 12–15–41 | 6,925 | 7,842 | ||||||
Philadelphia Auth Indl Dev, Rev Bonds (New Foundations Charter Sch Proj), Ser 2012, | ||||||||
6.625%, 12–15–41 | 3,500 | 3,960 | ||||||
Philadelphia, PA, Gas Works Rev Bonds (1998 Gen Ordinace), Ninth Ser, | ||||||||
5.250%, 8–1–40 | 755 | 824 | ||||||
Scranton-Lackawanna Hlth and Welfare Auth, Univ Rev Bonds (Marywood Univ Proj), Ser 2016, | ||||||||
5.000%, 6–1–46 | 2,265 | 2,282 | ||||||
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 (D) | 70 | 15 | ||||||
|
| |||||||
58,632 | ||||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
South Carolina – 0.2% |
| |||||||
Piedmont Muni Pwr Agy, SC, Elec Rev Rfdg Bonds, Ser 2008C, | ||||||||
5.750%, 1–1–34 | $ | 1,550 | $ | 1,767 | ||||
|
| |||||||
Tennessee – 0.2% |
| |||||||
Metro Nashville Arpt Auth, Arpt Impvt Rev Bonds, Ser 2015A, | ||||||||
5.000%, 7–1–40 | 2,000 | 2,288 | ||||||
|
| |||||||
Texas – 16.3% |
| |||||||
Arlington, TX, Higher Edu Fin Corp., Edu Rev Bonds (Wayside Sch), Ser 2016A, | ||||||||
4.375%, 8–15–36 | 640 | 638 | ||||||
Cap Area Cultural Edu Fac Fin Corp., Rev Bonds (The Roman Catholic Diocese of Austin), Ser 2005B, | ||||||||
6.125%, 4–1–45 | 3,150 | 3,456 | ||||||
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Bonds, Ser 2009A, | ||||||||
9.500%, 3–1–33 | 500 | 552 | ||||||
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2010: | ||||||||
0.000%, 1–1–36 (C) | 500 | 242 | ||||||
0.000%, 1–1–40 (C) | 500 | 202 | ||||||
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2015A, | ||||||||
5.000%, 1–1–45 | 4,000 | 4,447 | ||||||
Cent TX Rgnl Mobility Auth, Sub Lien Rev Rfdg Bonds, Ser 2013: | ||||||||
5.000%, 1–1–33 | 6,000 | 6,579 | ||||||
5.000%, 1–1–42 | 3,000 | 3,261 | ||||||
Dallas/Fort Worth Intl Arpt, Joint Rev Impvt Bonds, Ser 2013A, | ||||||||
5.000%, 11–1–45 | 8,000 | 8,636 | ||||||
Grand Prkwy Trans Corp., First Tier Toll Rev Bonds, Ser 2013A, | ||||||||
5.500%, 4–1–53 | 5,000 | 5,676 | ||||||
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 | 137 | ||||||
9.000%, 9–1–38 | 1,245 | 1,430 | ||||||
Harris Cnty Cultural Edu Fac Fin Corp., Rev Rfdg Bonds (Space Ctr Houston Proj), Sr Ser 2009, | ||||||||
7.000%, 8–15–28 | 500 | 529 | ||||||
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008: | ||||||||
6.000%, 2–15–33 | 2,000 | 2,019 | ||||||
6.000%, 2–15–38 | 250 | 252 | ||||||
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A, | ||||||||
6.875%, 5–15–41 | 3,800 | 4,559 | ||||||
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2011B: | ||||||||
5.000%, 7–1–25 | 1,000 | 1,129 | ||||||
5.000%, 7–1–26 | 2,680 | 3,025 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Texas (Continued) |
| |||||||
La Vernia Higher Edu Fin Corp. (Winfree Academy Charter Sch), Edu Rev Bonds, Ser 2009, | ||||||||
9.000%, 8–15–38 | $ | 2,395 | $ | 2,536 | ||||
La Vernia Higher Edu Fin Corp., Edu Rev Bonds (KIPP, Inc.), Ser 2009A, | ||||||||
6.375%, 8–15–44 | 2,000 | 2,195 | ||||||
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 | 2,560 | ||||||
New Hope Cultural Edu Fac Fin Corp., Edu Rev Bonds (Jubilee Academic Ctr), Ser 2016A, | ||||||||
5.000%, 8–15–46 | 4,000 | 4,007 | ||||||
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 | 1,289 | ||||||
5.000%, 7–1–46 | 2,000 | 2,032 | ||||||
North TX Twy Auth, Spl Proj Sys Rev Bonds Convertible Cap Apprec Bonds, Ser 2011C, | ||||||||
0.000%, 9–1–43 (C) | 9,000 | 9,694 | ||||||
Pharr, TX, Higher Edu Fin Auth, Edu Rev Bonds (Idea Pub Sch), Ser 2009A: | ||||||||
6.250%, 8–15–29 | 350 | 383 | ||||||
6.500%, 8–15–39 | 200 | 220 | ||||||
Sanger, TX, Indl Dev Corp., Indl Dev Rev Bonds (TX Pellets Proj), Ser 2012B, | ||||||||
8.000%, 7–1–38 (D) | 12,870 | 3,089 | ||||||
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Air Force Vig Oblig Group Proj), Ser 2016, | ||||||||
5.000%, 5–15–45 | 4,000 | 4,185 | ||||||
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 | 2,006 | ||||||
5.625%, 11–15–27 | 250 | 251 | ||||||
5.750%, 11–15–37 | 6,840 | 6,850 | ||||||
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Mirador Proj), Ser 2010A: | ||||||||
4.625%, 11–15–41 | 2,500 | 2,098 | ||||||
4.875%, 11–15–48 | 5,000 | 4,213 | ||||||
TX Muni Gas Acquisition and Supply Corp. III, Gas Supply Rev Bonds, Ser 2012, | ||||||||
5.000%, 12–15–32 | 3,000 | 3,333 | ||||||
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 | 2,295 | ||||||
7.500%, 6–30–33 | 2,700 | 3,078 | ||||||
7.000%, 6–30–40 | 11,430 | 12,924 |
106 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (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 | $ | 14,428 | ||||
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Odyssey Academy, Inc.), Ser 2010A, | ||||||||
7.125%, 2–15–40 | 2,000 | 2,281 | ||||||
TX Trans Comsn, Cent TX Tpk Sys First Tier Rev Rfdg Bonds, Ser 2012-A, | ||||||||
5.000%, 8–15–41 | 10,000 | 11,131 | ||||||
Wise Cnty, TX, Lease Rev Bonds (Parker Cnty Jr College Dist Proj), Ser 2011, | ||||||||
8.000%, 8–15–34 | 5,000 | 5,741 | ||||||
|
| |||||||
149,588 | ||||||||
|
| |||||||
Utah – 0.6% |
| |||||||
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Davis Preparatory Academy), Ser 2010, | ||||||||
6.250%, 7–15–30 | 1,015 | 1,079 | ||||||
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Star Academy Proj), Ser 2010B, | ||||||||
7.000%, 7–15–45 | 2,100 | 2,264 | ||||||
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (Paradigm High Sch), Ser 2010, | ||||||||
6.375%, 7–15–40 | 2,160 | 2,259 | ||||||
|
| |||||||
5,602 | ||||||||
|
| |||||||
Virgin Islands – 0.4% |
| |||||||
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Diageo Proj), Ser 2009A: | ||||||||
6.625%, 10–1–29 | 3,135 | 2,116 | ||||||
6.750%, 10–1–37 | 3,000 | 2,059 | ||||||
|
| |||||||
4,175 | ||||||||
|
| |||||||
Virginia – 2.7% |
| |||||||
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 | 3,029 | 3,007 | ||||||
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 | 481 | ||||||
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C: | ||||||||
7.250%, 7–1–19 | 240 | 255 | ||||||
7.500%, 7–1–29 | 25 | 27 | ||||||
Mosaic Dist Cmnty Dev Auth, Fairfax Cnty, VA, Rev Bonds, Ser 2011A, | ||||||||
6.875%, 3–1–36 | 4,300 | 4,728 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Virginia (Continued) |
| |||||||
VA Small Business Fin Auth, Sr Lien Rev Bonds (Elizabeth River Crossing Opco LLC Proj), Ser 2012: | ||||||||
6.000%, 1–1–37 | $ | 6,650 | $ | 7,556 | ||||
5.500%, 1–1–42 | 7,500 | 8,349 | ||||||
|
| |||||||
24,449 | ||||||||
|
| |||||||
Washington – 1.3% | ||||||||
Port of Sunnyside, Yakima Cnty, WA, Rev Bonds (Indl Wastewater Treatment Sys), Ser 2008, | ||||||||
6.625%, 12–1–21 | 1,610 | 1,646 | ||||||
WA Hlth Care Fac Auth, Rev Bonds (Cent WA Hlth Svcs Assoc), Ser 2009: | ||||||||
6.250%, 7–1–24 | 795 | 862 | ||||||
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 | 9,371 | ||||||
|
| |||||||
11,879 | ||||||||
|
| |||||||
West Virginia – 0.4% | ||||||||
Brooke Cnty, WV, Rev Bonds (Bethany College), Ser 2011A, | ||||||||
6.750%, 10–1–37 | 4,000 | 4,068 | ||||||
|
| |||||||
Wisconsin – 2.5% | ||||||||
Pub Fin Auth, Edu Rev Bonds (NC Charter Edu Fndtn Proj), Ser 2016A, | ||||||||
5.000%, 6–15–46 | 6,000 | 5,770 | ||||||
Pub Fin Auth, Higher Edu Fac Rev Bonds (Wittenberg Univ Proj), Ser 2016, | ||||||||
5.250%, 12–1–39 | 4,000 | 3,857 | ||||||
Pub Fin Auth, Sr Arpt Fac Rev and Rfdg Bonds (TrIps Obligated Group), Ser 2012B, | ||||||||
5.000%, 7–1–42 | 4,000 | 4,281 | ||||||
WI Hlth and Edu Fac Auth, Rev Bonds (Beloit College), Ser 2010A, | ||||||||
6.125%, 6–1–35 | 1,220 | 1,380 | ||||||
WI Pub Fin Auth, Edu Rev Bonds (Cornerstone Charter Academy Proj), Ser 2016A, | ||||||||
5.125%, 2–1–46 | 4,000 | 3,805 | ||||||
WI Pub Fin Auth, Edu Rev Bonds (Triad Edu Svc), Ser 2015A, | ||||||||
5.500%, 6–15–45 | 4,000 | 4,040 | ||||||
|
| |||||||
23,133 | ||||||||
|
| |||||||
TOTAL MUNICIPAL BONDS – 94.1% |
| $ | 865,742 | |||||
(Cost: $837,648) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Commercial Paper (F) – 1.3% | ||||||||
BorgWarner, Inc., | ||||||||
1.380%, 10–5–17 | 3,000 | 2,999 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (F) (Continued) |
| |||||||
E.I. du Pont de Nemours and Co., | ||||||||
1.361%, 10–4–17 | $ | 5,000 | $ | 4,999 | ||||
General Mills, Inc., | ||||||||
1.510%, 10–10–17 | 4,000 | 3,999 | ||||||
|
| |||||||
11,997 | ||||||||
|
| |||||||
Master Note – 0.0% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10–4–17 (G) | 228 | 228 | ||||||
|
| |||||||
Municipal Obligations – 2.3% | ||||||||
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.) (BVAL plus 13 bps), | ||||||||
0.960%, 10–7–17 (G) | 2,250 | 2,250 | ||||||
Exempla Gen Impvt Dist of Lafayette, CO, Spl Impvt Dist No. 02-01, Spl Assmt Rev Rfdg Bonds, Ser 2002 (GTD by Wells Fargo Bank N.A.) (BVAL plus 11 bps), | ||||||||
0.950%, 10–7–17 (G) | 1,575 | 1,575 | ||||||
Greenville Hosp Sys Board of Trustees, Hosp Rfdg Rev Bonds, Ser 2008B (GTD by U.S. Bank N.A.) (BVAL plus 10 bps), | ||||||||
0.940%, 10–7–17 (G) | 4,500 | 4,500 | ||||||
IL Fin Auth, Var Rate Demand Rev Bonds (North Park Univ Proj), Ser 2005 (GTD by JPMorgan Chase Bank N.A.) (BVAL plus 22 bps), | ||||||||
0.940%, 10–7–17 (G) | 2,000 | 2,000 | ||||||
Minneapolis, MN, Hsng Dev, Rfdg Rev Bonds (One Ten Grant Proj), Ser 1989 (GTD by FNMA) (BVAL plus 8 bps), | ||||||||
0.920%, 10–7–17 (G) | 3,845 | 3,845 | ||||||
NJ Hlth Care Fac Fin Auth, Rev Bonds, AHS Hosp Corp. Issue, Ser 2008C (GTD by JPMorgan Chase & Co.) (BVAL plus 9 bps), | ||||||||
0.910%, 10–7–17 (G) | 4,500 | 4,500 | ||||||
WI Hlth and Edu Fac Auth, Var Rate Demand Rev Bonds (Wausau Hosp, Inc.), Ser 1998B (GTD by JPMorgan Chase Bank N.A.) (BVAL plus 25 bps), | ||||||||
0.970%, 10–7–17 (H) | 2,200 | 2,200 | ||||||
|
| |||||||
20,870 | ||||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 3.6% |
| $ | 33,095 | |||||
(Cost: $33,096) | ||||||||
TOTAL INVESTMENT SECURITIES – 98.3% |
| $ | 903,949 | |||||
(Cost: $874,742) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES (H) – 1.7% |
| 15,312 | ||||||
NET ASSETS – 100.0% |
| $ | 919,261 |
2017 | SEMIANNUAL REPORT | 107 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Notes to Schedule of Investments
* | Not shown due to rounding. |
(A) | Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. |
(B) | Payment-in-kind bond which may pay interest in additional par and/or in cash. Rates shown are the current rate and possible payment rates. |
(C) | Zero coupon bond. |
(D) | Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy. |
(E) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description. |
(F) | Rate shown is the yield to maturity at September 30, 2017. |
(G) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
(H) | Cash of $607 has been pledged as collateral on open futures contracts. |
(I) | Securities whose value was determined using significant unobservable inputs. |
The following futures contracts were outstanding at September 30, 2017 (contracts unrounded):
Description | Type | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation | ||||||||||||||||||||||
U.S. Treasury Long Bond | Short | 184 | 12–29–17 | 18,400 | $ | (28,118 | ) | $ | 457 | |||||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | — | $ | — | $ | 1,841 | ||||||
Corporate Debt Securities | — | 3,271 | — | |||||||||
Municipal Bonds | — | 865,742 | — | |||||||||
Short-Term Securities | — | 33,095 | — | |||||||||
Total | $ | — | $ | 902,108 | $ | 1,841 | ||||||
Futures Contracts | $ | 457 | $ | — | $ | — |
During the period ended September 30, 2017, there were no transfers between any levels.
The following acronyms are used throughout this schedule:
AMBAC = American Municipal Bond Assurance Corp.
AGM = Assured Guaranty Municipal
BVAL = Bloomberg Valuation Benchmark Curve
FNMA = Federal National Mortgage Association
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
PIK = Payment in Kind
SIFMA = Securities Industrial and Financial Markets Association
See Accompanying Notes to Financial Statements.
108 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY SMALL CAP CORE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 97.3% | |||
Information Technology | 17.1% | |||
Financials | 15.8% | |||
Industrials | 13.0% | |||
Consumer Discretionary | 12.4% | |||
Health Care | 11.1% | |||
Consumer Staples | 7.8% | |||
Materials | 7.1% | |||
Energy | 4.8% | |||
Real Estate | 3.5% | |||
Utilities | 2.4% | |||
Telecommunication Services | 2.3% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 2.7% |
Lipper Rankings
Category: Small-Cap Core Funds | Rank | Percentile | ||||
1 Year | 756/1,007 | 75 | ||||
3 Year | 219/831 | 27 | ||||
5 Year | 209/707 | 30 | ||||
10 Year | 153/511 | 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 | ||
Webster Financial Corp. | Financials | Regional Banks | ||
Tivity Health, Inc. | Health Care | Health Care Services | ||
Bob Evans Farms, Inc. | Consumer Discretionary | Restaurants | ||
Visteon Corp. | Consumer Discretionary | Auto Parts & Equipment | ||
Laredo Petroleum Holdings, Inc. | Energy | Oil & Gas Exploration & Production | ||
Pinnacle Foods, Inc. | Consumer Staples | Packaged Foods & Meats | ||
Woodward, Inc. | Industrials | Industrial Machinery | ||
Take-Two Interactive Software, Inc. | Information Technology | Home Entertainment Software | ||
Sensient Technologies Corp. | Materials | Specialty Chemicals | ||
Saia, Inc. | Industrials | Trucking |
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.
2017 | SEMIANNUAL REPORT | 109 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY SMALL CAP CORE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Auto Parts & Equipment – 4.8% |
| |||||||
Visteon Corp. (A) | 239 | $ | 29,618 | |||||
|
| |||||||
Homefurnishing Retail – 2.2% |
| |||||||
Restoration Hardware Holdings, Inc. (A) | 189 | 13,298 | ||||||
|
| |||||||
Restaurants – 5.4% |
| |||||||
Bob Evans Farms, Inc. | 386 | 29,928 | ||||||
Buffalo Wild Wings, Inc. (A) | 29 | 3,087 | ||||||
Red Robin Gourmet Burgers, Inc. (A) | 7 | 436 | ||||||
|
| |||||||
33,451 | ||||||||
|
| |||||||
Total Consumer Discretionary – 12.4% |
| 76,367 | ||||||
Consumer Staples |
| |||||||
Packaged Foods & Meats – 6.2% |
| |||||||
Pinnacle Foods, Inc. | 482 | 27,579 | ||||||
Post Holdings, Inc. (A) | 122 | 10,743 | ||||||
|
| |||||||
38,322 | ||||||||
|
| |||||||
Soft Drinks – 1.6% |
| |||||||
Coca-Cola Bottling Co. Consolidated | 44 | 9,519 | ||||||
|
| |||||||
Total Consumer Staples – 7.8% |
| 47,841 | ||||||
Energy |
| |||||||
Oil & Gas Exploration & Production – 4.8% |
| |||||||
Laredo Petroleum Holdings, Inc. (A) | 2,290 | 29,615 | ||||||
|
| |||||||
Total Energy – 4.8% |
| 29,615 | ||||||
Financials |
| |||||||
Life & Health Insurance – 1.5% |
| |||||||
American Equity Investment Life Holding Co. | 305 | 8,875 | ||||||
|
| |||||||
Multi-Line Insurance – 0.2% |
| |||||||
Kemper Corp. | 28 | 1,474 | ||||||
|
| |||||||
Regional Banks – 11.6% |
| |||||||
Chemical Financial Corp. | 185 | 9,667 | ||||||
FCB Financial Holdings, Inc., Class A (A) | 198 | 9,583 | ||||||
Pinnacle Financial Partners, Inc. | 138 | 9,206 | ||||||
Webster Financial Corp. | 583 | 30,616 | ||||||
Western Alliance Bancorp. (A) | 232 | 12,301 | ||||||
|
| |||||||
71,373 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance – 2.5% |
| |||||||
MGIC Investment Corp. (A) | 674 | 8,441 | ||||||
Radian Group, Inc. | 357 | 6,674 | ||||||
|
| |||||||
15,115 | ||||||||
|
| |||||||
Total Financials – 15.8% |
| 96,837 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Health Care |
| |||||||
Health Care Equipment – 1.4% |
| |||||||
Insulet Corp. (A) | 158 | $ | 8,692 | |||||
|
| |||||||
Health Care Facilities – 1.2% |
| |||||||
HealthSouth Corp. | 156 | 7,230 | ||||||
|
| |||||||
Health Care Services – 4.9% |
| |||||||
Tivity Health, Inc. (A) | 748 | 30,521 | ||||||
|
| |||||||
Health Care Technology – 3.6% |
| |||||||
Evolent Health, Inc., Class A (A) | 879 | 15,653 | ||||||
Omnicell, Inc. (A) | 124 | 6,313 | ||||||
|
| |||||||
21,966 | ||||||||
|
| |||||||
Total Health Care – 11.1% |
| 68,409 | ||||||
Industrials |
| |||||||
Construction Machinery & Heavy Trucks – 2.2% |
| |||||||
Navistar International Corp. (A) | 305 | 13,459 | ||||||
|
| |||||||
Electrical Components & Equipment – 0.2% |
| |||||||
Generac Holdings, Inc. (A) | 28 | 1,271 | ||||||
|
| |||||||
Industrial Machinery – 4.4% |
| |||||||
Woodward, Inc. | 346 | 26,891 | ||||||
|
| |||||||
Trading Companies & Distributors – 1.5% |
| |||||||
Beacon Roofing Supply, Inc. (A) | 186 | 9,530 | ||||||
|
| |||||||
Trucking – 4.7% |
| |||||||
Saia, Inc. (A) | 272 | 17,056 | ||||||
YRC Worldwide, Inc. (A) | 836 | 11,532 | ||||||
|
| |||||||
28,588 | ||||||||
|
| |||||||
Total Industrials – 13.0% |
| 79,739 | ||||||
Information Technology |
| |||||||
Application Software – 2.3% |
| |||||||
8x8, Inc. (A) | 490 | 6,614 | ||||||
Everbridge, Inc. (A) | 296 | 7,814 | ||||||
|
| |||||||
14,428 | ||||||||
|
| |||||||
Data Processing & Outsourced Services – 1.3% |
| |||||||
Conduent, Inc. (A) | 527 | 8,258 | ||||||
|
| |||||||
Home Entertainment Software – 4.6% |
| |||||||
Take-Two Interactive Software, Inc. (A) | 242 | 24,732 | ||||||
Zynga, Inc. (A) | 859 | 3,246 | ||||||
|
| |||||||
27,978 | ||||||||
|
| |||||||
Internet Software & Services – 1.7% |
| |||||||
Q2 Holdings, Inc. (A) | 246 | 10,260 | ||||||
|
| |||||||
Semiconductors – 2.2% |
| |||||||
Integrated Device Technology, Inc. (A) | 510 | 13,551 | ||||||
|
| |||||||
Systems Software – 2.4% |
| |||||||
Tableau Software, Inc., Class A (A) | 199 | 14,932 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Technology Distributors – 2.6% |
| |||||||
Synnex Corp. | 126 | $ | 15,960 | |||||
|
| |||||||
Total Information Technology – 17.1% |
| 105,367 | ||||||
Materials |
| |||||||
Commodity Chemicals – 1.1% |
| |||||||
Cabot Corp. | 120 | 6,696 | ||||||
|
| |||||||
Diversified Metals & Mining – 1.2% |
| |||||||
Compass Minerals International, Inc. | 113 | 7,325 | ||||||
|
| |||||||
Specialty Chemicals – 4.0% |
| |||||||
Innospec, Inc. | 67 | 4,100 | ||||||
Sensient Technologies Corp. | 268 | 20,579 | ||||||
|
| |||||||
24,679 | ||||||||
|
| |||||||
Steel – 0.8% |
| |||||||
TimkenSteel Corp. (A) | 310 | 5,121 | ||||||
|
| |||||||
Total Materials – 7.1% |
| 43,821 | ||||||
Real Estate |
| |||||||
Diversified Real Estate Activities – 0.7% |
| |||||||
CoreSite Realty Corp. | 36 | 4,073 | ||||||
|
| |||||||
Industrial REITs – 1.6% |
| |||||||
First Industrial Realty Trust, Inc. | 128 | 3,860 | ||||||
STAG Industrial, Inc. | 213 | 5,843 | ||||||
|
| |||||||
9,703 | ||||||||
|
| |||||||
Real Estate Services – 1.2% |
| |||||||
Realogy Holdings Corp. | 231 | 7,605 | ||||||
|
| |||||||
Total Real Estate – 3.5% |
| 21,381 | ||||||
Telecommunication Services |
| |||||||
Alternative Carriers – 2.3% |
| |||||||
Vonage Holdings Corp. (A) | 1,732 | 14,098 | ||||||
|
| |||||||
Total Telecommunication Services – 2.3% |
| 14,098 | ||||||
Utilities |
| |||||||
Electric Utilities – 1.2% |
| |||||||
ALLETE, Inc. | 93 | 7,195 | ||||||
|
| |||||||
Gas Utilities – 1.2% |
| |||||||
South Jersey Industries, Inc. | 60 | 2,078 | ||||||
Spire, Inc. | 76 | 5,674 | ||||||
|
| |||||||
7,752 | ||||||||
|
| |||||||
Total Utilities – 2.4% |
| 14,947 | ||||||
TOTAL COMMON STOCKS – 97.3% |
| $ | 598,422 | |||||
(Cost: $483,307) |
|
110 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY SMALL CAP CORE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
SHORT-TERM SECURITIES | Principal | Value | ||||||
Commercial Paper (B) – 2.3% |
| |||||||
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), | ||||||||
1.350%, 10-4-17 | $ | 6,500 | $ | 6,499 | ||||
Kroger Co. (The), | ||||||||
1.300%, 10-2-17 | 7,340 | 7,339 | ||||||
|
| |||||||
13,838 | ||||||||
|
| |||||||
Master Note – 0.6% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10-4-17 (C) | 3,815 | 3,815 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 2.9% |
| $ | 17,653 | |||||
(Cost: $17,654) |
| |||||||
TOTAL INVESTMENT SECURITIES – 100.2% |
| $ | 616,075 | |||||
(Cost: $500,961) |
| |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)% |
| (1,373 | ) | |||||
NET ASSETS – 100.0% |
| $ | 614,702 |
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, 2017. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 598,422 | $ | — | $ | — | ||||||
Short-Term Securities | — | 17,653 | — | |||||||||
Total | $ | 598,422 | $ | 17,653 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 111 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY SMALL CAP GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation |
Stocks | 94.8% | |||
Information Technology | 27.9% | |||
Industrials | 19.9% | |||
Health Care | 16.8% | |||
Consumer Discretionary | 15.2% | |||
Financials | 6.0% | |||
Energy | 3.5% | |||
Materials | 2.3% | |||
Real Estate | 2.2% | |||
Consumer Staples | 1.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 5.2% |
Lipper Rankings
Category: Small-Cap Growth Funds | Rank | Percentile | ||||
1 Year | 134/550 | 25 | ||||
3 Year | 124/493 | 26 | ||||
5 Year | 170/448 | 38 | ||||
10 Year | 48/337 | 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 | ||
AMN Healthcare Services, Inc. | Health Care | Health Care Services | ||
Mercury Computer Systems, Inc. | Industrials | Aerospace & Defense | ||
XPO Logistics, Inc. | Industrials | Air Freight & Logistics | ||
RE/MAX Holdings, Inc., Class A | Real Estate | Real Estate Services | ||
Booz Allen Hamilton Holding Corp. | Information Technology | IT Consulting & Other Services | ||
Ultimate Software Group, Inc. (The) | Information Technology | Application Software | ||
Beacon Roofing Supply, Inc. | Industrials | Trading Companies & Distributors | ||
Acadia Healthcare Co., Inc. | Health Care | Health Care Facilities | ||
Paycom Software, Inc. | Information Technology | Application Software | ||
HubSpot, Inc. | 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.
112 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY SMALL CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary | ||||||||
Apparel Retail – 1.5% | ||||||||
Burlington Stores, Inc. (A) | 172 | $ | 16,419 | |||||
Caleres, Inc. | 6 | 198 | ||||||
|
| |||||||
16,617 | ||||||||
|
| |||||||
Auto Parts & Equipment – 1.0% |
| |||||||
Visteon Corp. (A) | 91 | 11,202 | ||||||
|
| |||||||
Distributors – 1.5% |
| |||||||
Pool Corp. | 153 | 16,508 | ||||||
|
| |||||||
General Merchandise Stores – 1.0% |
| |||||||
Ollie’s Bargain Outlet Holdings, Inc. (A) | 233 | 10,816 | ||||||
|
| |||||||
Homebuilding – 1.6% |
| |||||||
Installed Building Products, Inc. (A) | 279 | 18,099 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 1.4% |
| |||||||
Hilton Grand Vacations, Inc. (A) | 415 | 16,028 | ||||||
|
| |||||||
Leisure Facilities – 0.9% |
| |||||||
Vail Resorts, Inc. | 43 | 9,720 | ||||||
|
| |||||||
Leisure Products – 0.5% |
| |||||||
Nautilus Group, Inc. (The) (A) | 296 | 5,001 | ||||||
|
| |||||||
Restaurants – 4.1% |
| |||||||
Dave & Buster’s Entertainment, Inc. (A) | 289 | 15,143 | ||||||
Texas Roadhouse, Inc., Class A | 311 | 15,292 | ||||||
Wingstop, Inc. | 481 | 15,997 | ||||||
|
| |||||||
46,432 | ||||||||
|
| |||||||
Specialty Stores – 1.7% |
| |||||||
Five Below, Inc. (A) | 258 | 14,153 | ||||||
Party City Holdco, Inc. (A) | 399 | 5,404 | ||||||
|
| |||||||
19,557 | ||||||||
|
| |||||||
Total Consumer Discretionary – 15.2% |
| 169,980 | ||||||
Consumer Staples | ||||||||
Packaged Foods & Meats – 1.0% |
| |||||||
Lance, Inc. | 290 | 11,042 | ||||||
|
| |||||||
Total Consumer Staples – 1.0% | 11,042 | |||||||
Energy | ||||||||
Oil & Gas Equipment & Services – 2.4% |
| |||||||
Keane Group, Inc. (A) | 479 | 7,981 | ||||||
RPC, Inc. | 597 | 14,807 | ||||||
U.S. Silica Holdings, Inc. | 124 | 3,851 | ||||||
|
| |||||||
26,639 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 1.1% |
| |||||||
Centennial Resource Development, Inc., Class A (A) | 263 | 4,717 | ||||||
Jagged Peak Energy, Inc. (A) | 223 | 3,044 | ||||||
Petroleum Development Corp. (A) | 110 | 5,393 | ||||||
|
| |||||||
13,154 | ||||||||
|
| |||||||
Total Energy – 3.5% | 39,793 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Financials | ||||||||
Regional Banks – 5.5% |
| |||||||
Ameris Bancorp | 222 | $ | 10,651 | |||||
Home BancShares, Inc. | 675 | 17,022 | ||||||
SVB Financial Group (A) | 78 | 14,604 | ||||||
Western Alliance Bancorp. (A) | 355 | 18,849 | ||||||
|
| |||||||
61,126 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance – 0.5% |
| |||||||
LendingTree, Inc. (A) | 23 | 5,622 | ||||||
|
| |||||||
Total Financials – 6.0% | 66,748 | |||||||
Health Care | ||||||||
Health Care Equipment – 7.2% |
| |||||||
Inogen, Inc. (A) | 138 | 13,147 | ||||||
iRhythm Technologies, Inc. (A) | 154 | 7,982 | ||||||
K2M Group Holdings, Inc. (A) | 698 | 14,810 | ||||||
Nevro Corp. (A) | 168 | 15,244 | ||||||
NuVasive, Inc. (A) | 170 | 9,416 | ||||||
Penumbra, Inc. (A) | 169 | 15,294 | ||||||
Tactile Systems Technology, Inc. (A) | 150 | 4,649 | ||||||
|
| |||||||
80,542 | ||||||||
|
| |||||||
Health Care Facilities – 1.9% |
| |||||||
Acadia Healthcare Co., Inc. (A) | 456 | 21,781 | ||||||
|
| |||||||
Health Care Services – 4.9% |
| |||||||
AMN Healthcare Services, Inc. (A) | 719 | 32,842 | ||||||
Envision Healthcare Holdings, Inc. (A) | 219 | 9,835 | ||||||
Teladoc, Inc. (A) | 374 | 12,389 | ||||||
|
| |||||||
55,066 | ||||||||
|
| |||||||
Life Sciences Tools & Services – 0.8% |
| |||||||
Cambrex Corp. (A) | 156 | 8,564 | ||||||
|
| |||||||
Managed Health Care – 1.6% | ||||||||
HealthEquity, Inc. (A) | 352 | 17,784 | ||||||
|
| |||||||
Pharmaceuticals – 0.4% | ||||||||
Aerie Pharmaceuticals, Inc. (A) | 99 | 4,819 | ||||||
|
| |||||||
Total Health Care – 16.8% | 188,556 | |||||||
Industrials | ||||||||
Aerospace & Defense – 2.7% |
| |||||||
Mercury Computer Systems, Inc. (A) | 594 | 30,832 | ||||||
|
| |||||||
Agricultural & Farm Machinery – 0.7% |
| |||||||
Toro Co. (The) | 124 | 7,683 | ||||||
|
| |||||||
Air Freight & Logistics – 2.3% | ||||||||
XPO Logistics, Inc. (A) | 384 | 26,007 | ||||||
|
| |||||||
Building Products – 0.8% | ||||||||
JELD-WEN Holding, Inc. (A) | 238 | 8,471 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Construction & Engineering – 1.6% | ||||||||
Dycom Industries, Inc. (A) | 208 | $ | 17,872 | |||||
|
| |||||||
Diversified Support Services – 0.6% | ||||||||
Healthcare Services Group, Inc. | 131 | 7,086 | ||||||
|
| |||||||
Industrial Machinery – 5.0% | ||||||||
John Bean Technologies Corp. | 188 | 19,037 | ||||||
RBC Bearings, Inc. (A) | 88 | 10,955 | ||||||
Timken Co. (The) | 168 | 8,164 | ||||||
Woodward, Inc. | 237 | 18,401 | ||||||
|
| |||||||
56,557 | ||||||||
|
| |||||||
Security & Alarm Services – 1.3% | ||||||||
Brink’s Co. (The) | 174 | 14,651 | ||||||
|
| |||||||
Trading Companies & Distributors – 3.6% |
| |||||||
Beacon Roofing Supply, Inc. (A) | 441 | 22,601 | ||||||
Watsco, Inc. | 110 | 17,678 | ||||||
|
| |||||||
40,279 | ||||||||
|
| |||||||
Trucking – 1.3% | ||||||||
Knight Transportation, Inc. (A) | 344 | 14,289 | ||||||
|
| |||||||
Total Industrials – 19.9% | 223,727 | |||||||
Information Technology | ||||||||
Application Software – 11.7% | ||||||||
BroadSoft, Inc. (A) | 373 | 18,742 | ||||||
Ellie Mae, Inc. (A) | 121 | 9,929 | ||||||
Globant S.A. (A) | 249 | 9,973 | ||||||
HubSpot, Inc. (A) | 235 | 19,769 | ||||||
Paycom Software, Inc. (A) | 274 | 20,547 | ||||||
Tyler Technologies, Inc. (A) | 88 | 15,392 | ||||||
Ultimate Software Group, Inc. (The) (A) | 125 | 23,691 | ||||||
Zendesk, Inc. (A) | 445 | 12,954 | ||||||
|
| |||||||
130,997 | ||||||||
|
| |||||||
Communications Equipment – 1.2% | ||||||||
Lumentum Holdings, Inc. (A) | 235 | 12,783 | ||||||
|
| |||||||
Electronic Manufacturing Services – 1.0% |
| |||||||
Fabrinet (A) | 298 | 11,055 | ||||||
|
| |||||||
Internet Software & Services – 3.4% |
| |||||||
Envestnet, Inc. (A) | 44 | 2,229 | ||||||
Five9, Inc. (A) | 585 | 13,977 | ||||||
Mimecast Ltd. (A) | 98 | 2,785 | ||||||
Q2 Holdings, Inc. (A) | 269 | 11,187 | ||||||
Shopify, Inc., Class A (A) | 68 | 7,886 | ||||||
|
| |||||||
38,064 | ||||||||
|
| |||||||
IT Consulting & Other Services – 3.4% |
| |||||||
Booz Allen Hamilton Holding Corp. | 646 | 24,162 | ||||||
InterXion Holding N.V. (A) | 280 | 14,250 | ||||||
|
| |||||||
38,412 | ||||||||
|
|
2017 | SEMIANNUAL REPORT | 113 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY SMALL CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS (Continued) | Shares | Value | ||||||
Semiconductors – 3.8% |
| |||||||
Integrated Device Technology, Inc. (A) | 278 | $ | 7,384 | |||||
Monolithic Power Systems, Inc. | 153 | 16,281 | ||||||
Power Integrations, Inc. | 264 | 19,307 | ||||||
|
| |||||||
42,972 | ||||||||
|
| |||||||
Systems Software – 2.6% | ||||||||
Proofpoint, Inc. (A) | 210 | 18,343 | ||||||
Varonis Systems, Inc. (A) | 258 | 10,807 | ||||||
|
| |||||||
29,150 | ||||||||
|
| |||||||
Technology Distributors – 0.8% |
| |||||||
Tech Data Corp. (A) | 103 | 9,116 | ||||||
|
| |||||||
Total Information Technology – 27.9% |
| 312,549 | ||||||
Materials | ||||||||
Construction Materials – 2.1% | ||||||||
Summit Materials, Inc., Class A (A) | 471 | 15,079 | ||||||
U.S. Concrete, Inc. (A) | 107 | 8,166 | ||||||
|
| |||||||
23,245 | ||||||||
|
| |||||||
Paper Products – 0.2% | ||||||||
KapStone Paper and Packaging Corp. | 141 | 3,038 | ||||||
|
| |||||||
Total Materials – 2.3% | 26,283 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Real Estate |
| |||||||
Real Estate Services – 2.2% |
| |||||||
RE/MAX Holdings, Inc., Class A | 382 | $ | 24,251 | |||||
|
| |||||||
Total Real Estate – 2.2% | 24,251 | |||||||
TOTAL COMMON STOCKS – 94.8% |
| $ | 1,062,929 | |||||
(Cost: $748,498) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (B) – 5.1% |
| |||||||
BorgWarner, Inc., | ||||||||
1.380%, 10-5-17 | $ | 3,000 | 2,999 | |||||
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.), | ||||||||
1.180%, 10-5-17 | 22,000 | 21,995 | ||||||
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.), | ||||||||
1.580%, 10-10-17 | 6,014 | 6,011 | ||||||
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), | ||||||||
1.240%, 10-6-17 | 5,000 | 4,999 | ||||||
J.M. Smucker Co. (The), | ||||||||
1.371%, 10-6-17 | 5,000 | 4,999 | ||||||
L Oreal USA, Inc., | ||||||||
1.170%, 10-2-17 | 5,000 | 5,000 | ||||||
Mondelez International, Inc., | ||||||||
1.510%, 10-10-17 | 5,000 | 4,998 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper(B) (Continued) |
| |||||||
Sysco Corp., | ||||||||
1.350%, 10-2-17 | $ | 6,540 | $ | 6,539 | ||||
|
| |||||||
57,540 | ||||||||
|
| |||||||
Master Note – 0.1% | ||||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10-4-17(C) | 1,135 | 1,135 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 5.2% |
| $ | 58 ,675 | |||||
(Cost: $58,680) | ||||||||
TOTAL INVESTMENT |
| $ | 1,121,604 | |||||
(Cost: $807,178) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – 0.0% |
| (3 | ) | |||||
NET ASSETS – 100.0% |
| $ | 1,121,601 |
Notes to Schedule of Investments
* | Not shown due to rounding. |
(A) | No dividends were paid during the preceding 12 months. |
(B) | Rate shown is the yield to maturity at September 30, 2017. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following total return swap agreements were outstanding at September 30, 2017:
Underlying Security | Counterparty | Maturity Date | Notional Amount | Financing Fee(1)(2) | Value | Upfront Payments/ (Receipts) | Unrealized Appreciation | |||||||||||||||||||||||
Biotech Custom Index | JPMorgan Chase Bank N.A. | 01/09/2018 | $ | 35,657 | 1-Month LIBOR less 50 bps | $ | 632 | $ | — | $ | 632 | |||||||||||||||||||
|
|
(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. |
114 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY SMALL CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
The following table represents security positions within the total return basket swap as of September 30, 2017:
Reference Entity | Shares | Notional Amount | Unrealized Appreciation | |||||||||
Kite Pharma Inc | — | * | $ | 2,923 | $ | 52 | ||||||
Exact Sciences Corp | 1 | 1,998 | 35 | |||||||||
Aerie Pharmaceuticals Inc | 1 | 1,696 | 30 | |||||||||
Myriad Genetics Inc | 1 | 1,444 | 25 | |||||||||
Exelixis Inc | 1 | 1,409 | 25 | |||||||||
TESARO Inc | — | * | 1,387 | 25 | ||||||||
PRA Health Sciences Inc | — | * | 1,354 | 24 | ||||||||
INC Research Holdings Inc | — | * | 1,189 | 21 | ||||||||
Clovis Oncology Inc | — | * | 1,158 | 20 | ||||||||
Ligand Pharmaceuticals Inc | — | * | 1,041 | 18 | ||||||||
Amicus Therapeutics Inc | 1 | 1,025 | 18 | |||||||||
Nektar Therapeutics | 1 | 993 | 18 | |||||||||
Bluebird Bio Inc | — | * | 975 | 17 | ||||||||
Prothena Corp PLC | — | * | 927 | 16 | ||||||||
Halozyme Therapeutics Inc | 1 | 904 | 16 | |||||||||
Spark Therapeutics Inc | — | * | 824 | 15 | ||||||||
Sarepta Therapeutics Inc | — | * | 812 | 14 | ||||||||
Ultragenyx Pharmaceutical Inc | — | * | 770 | 14 | ||||||||
Sage Therapeutics Inc | — | * | 740 | 13 | ||||||||
Array BioPharma Inc | 1 | 630 | 11 | |||||||||
ImmunoGen Inc | 1 | 570 | 10 | |||||||||
Dynavax Technologies Corp | — | * | 527 | 9 | ||||||||
Portola Pharmaceuticals Inc | — | * | 513 | 9 | ||||||||
Avexis Inc | — | * | 467 | 8 | ||||||||
Repligen Corp | — | * | 450 | 8 | ||||||||
Acceleron Pharma Inc | — | * | 435 | 8 | ||||||||
Global Blood Therapeutics Inc | — | * | 414 | 7 | ||||||||
Dermira Inc | — | * | 397 | 7 | ||||||||
ZIOPHARM Oncology Inc | 1 | 393 | 7 | |||||||||
Vanda Pharmaceuticals Inc | — | * | 379 | 7 | ||||||||
Keryx Biopharmaceuticals Inc | 1 | 376 | 7 | |||||||||
Seres Therapeutics Inc | — | * | 332 | 6 | ||||||||
Progenics Pharmaceuticals Inc | 1 | 326 | 6 | |||||||||
Lexicon Pharmaceuticals Inc | — | * | 324 | 6 | ||||||||
Ironwood Pharmaceuticals Inc | — | * | 318 | 6 | ||||||||
Heron Therapeutics Inc | — | * | 289 | 5 |
Reference Entity | Shares | Notional Amount | Unrealized Appreciation | |||||||||
Acorda Therapeutics Inc | — | * | $ | 284 | $ | 5 | ||||||
Alder Biopharmaceuticals Inc | — | * | 269 | 5 | ||||||||
Inovio Pharmaceuticals Inc | 1 | 267 | 5 | |||||||||
Agios Pharmaceuticals Inc | — | * | 263 | 5 | ||||||||
ANI Pharmaceuticals Inc | — | * | 261 | 5 | ||||||||
Pacific Biosciences of California Inc | 1 | 256 | 4 | |||||||||
Five Prime Therapeutics Inc | — | * | 251 | 4 | ||||||||
Eagle Pharmaceuticals Inc/DE | — | * | 247 | 4 | ||||||||
Synergy Pharmaceuticals Inc | 2 | 243 | 4 | |||||||||
ACADIA Pharmaceuticals Inc | — | * | 221 | 4 | ||||||||
Juno Therapeutics Inc | — | * | 207 | 4 | ||||||||
Retrophin Inc | — | * | 202 | 4 | ||||||||
Ionis Pharmaceuticals Inc | — | * | 202 | 4 | ||||||||
Coherus Biosciences Inc | — | * | 198 | 3 | ||||||||
China Biologic Products Holdings Inc | — | * | 175 | 3 | ||||||||
PTC Therapeutics Inc | — | * | 171 | 3 | ||||||||
Amarin Corp PLC | 1 | 163 | 3 | |||||||||
AMAG Pharmaceuticals Inc | — | * | 150 | 3 | ||||||||
Novavax Inc | 2 | 124 | 2 | |||||||||
Achillion Pharmaceuticals Inc | — | * | 108 | 2 | ||||||||
Minerva Neurosciences Inc | — | * | 96 | 2 | ||||||||
Intrexon Corp | — | * | 94 | 2 | ||||||||
Merrimack Pharmaceuticals Inc | — | * | 90 | 2 | ||||||||
Radius Health Inc | — | * | 89 | 2 | ||||||||
Celldex Therapeutics Inc | 1 | 81 | 1 | |||||||||
Advaxis Inc | — | * | 76 | 1 | ||||||||
Intercept Pharmaceuticals Inc | — | * | 51 | 1 | ||||||||
XBiotech Inc | — | * | 49 | 1 | ||||||||
Ophthotech Corp | — | * | 38 | 1 | ||||||||
Sophiris Bio Inc | — | * | 21 | — | * | |||||||
AquaBounty Technologies Inc | — | * | 1 | — | * | |||||||
|
| |||||||||||
$ | 632 | |||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 1,062,929 | $ | — | $ | — | ||||||
Short-Term Securities | — | 58,675 | — | |||||||||
Total | $ | 1,062,929 | $ | 58,675 | $ | — | ||||||
Total Return Swaps | $ | — | $ | 632 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
GTD = Guaranteed
LIBOR = London Interbank Offered Rate
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 115 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY TAX-MANAGED EQUITY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 99.0% | |||
Information Technology | 41.9% | |||
Industrials | 15.1% | |||
Health Care | 14.4% | |||
Consumer Discretionary | 12.8% | |||
Consumer Staples | 6.5% | |||
Financials | 3.9% | |||
Energy | 2.4% | |||
Real Estate | 2.0% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 1.0% |
Lipper Rankings
Category: Large-Cap Growth Funds | Rank | Percentile | ||||
1 Year | 475/658 | 73 | ||||
3 Year | 454/592 | 77 | ||||
5 Year | 300/532 | 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.
Top 10 Equity Holdings
Company | Sector | Industry | ||
Microsoft Corp. | Information Technology | Systems Software | ||
Apple, Inc. | Information Technology | Technology Hardware, Storage & Peripherals | ||
salesforce.com, Inc. | Information Technology | Application Software | ||
Alphabet, Inc., Class A | Information Technology | Internet Software & Services | ||
Amazon.com, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | ||
Visa, Inc., Class A | Information Technology | Data Processing & Outsourced Services | ||
Facebook, Inc., Class A | Information Technology | Internet Software & Services | ||
Adobe Systems, Inc. | Information Technology | Application Software | ||
Stanley Black & Decker, Inc. | Industrials | Industrial Machinery | ||
CME Group, Inc. | Financials | Financial Exchanges & Data |
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 | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY TAX-MANAGED EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Cable & Satellite – 2.1% |
| |||||||
Comcast Corp., Class A | 70 | $ | 2,682 | |||||
|
| |||||||
Footwear – 0.9% |
| |||||||
NIKE, Inc., Class B | 24 | 1,240 | ||||||
|
| |||||||
Home Improvement Retail – 2.3% |
| |||||||
Home Depot, Inc. (The) | 19 | 3,059 | ||||||
|
| |||||||
Internet & Direct Marketing Retail – 7.5% |
| |||||||
Amazon.com, Inc. (A) | 6 | 5,410 | ||||||
Expedia, Inc. | 13 | 1,842 | ||||||
priceline.com, Inc. (A) | 1 | 2,477 | ||||||
|
| |||||||
9,729 | ||||||||
|
| |||||||
Total Consumer Discretionary – 12.8% |
| 16,710 | ||||||
Consumer Staples |
| |||||||
Hypermarkets & Super Centers – 0.4% |
| |||||||
Costco Wholesale Corp. | 3 | 534 | ||||||
|
| |||||||
Packaged Foods & Meats – 0.6% |
| |||||||
Blue Buffalo Pet Products, Inc. (A) | 26 | 748 | ||||||
|
| |||||||
Personal Products – 1.6% |
| |||||||
Estee Lauder Co., Inc. (The), Class A | 20 | 2,117 | ||||||
|
| |||||||
Soft Drinks – 2.0% |
| |||||||
Monster Beverage Corp. (A) | 47 | 2,572 | ||||||
|
| |||||||
Tobacco – 1.9% |
| |||||||
Philip Morris International, Inc. | 22 | 2,473 | ||||||
|
| |||||||
Total Consumer Staples – 6.5% |
| 8,444 | ||||||
Energy |
| |||||||
Oil & Gas Equipment & Services – 2.4% |
| |||||||
Halliburton Co. | 70 | 3,206 | ||||||
|
| |||||||
Total Energy – 2.4% |
| 3,206 | ||||||
Financials |
| |||||||
Financial Exchanges & Data – 3.2% |
| |||||||
CME Group, Inc. | 30 | 4,097 | ||||||
|
| |||||||
Investment Banking & Brokerage – 0.7% |
| |||||||
Goldman Sachs Group, Inc. (The) | 4 | 949 | ||||||
|
| |||||||
Total Financials – 3.9% |
| 5,046 | ||||||
Health Care |
| |||||||
Biotechnology – 8.0% |
| |||||||
ACADIA Pharmaceuticals, Inc. (A) | 52 | 1,976 | ||||||
Alexion Pharmaceuticals, Inc. (A) | 11 | 1,497 | ||||||
BioMarin Pharmaceutical, Inc. (A) | 25 | 2,359 | ||||||
Celgene Corp. (A) | 22 | 3,274 | ||||||
Incyte Corp. (A) | 11 | 1,330 | ||||||
|
| |||||||
10,436 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Health Care Equipment – 4.2% |
| |||||||
Danaher Corp. | 42 | $ | 3,624 | |||||
Intuitive Surgical, Inc. (A) | 2 | 1,935 | ||||||
|
| |||||||
5,559 | ||||||||
|
| |||||||
Pharmaceuticals – 2.2% |
| |||||||
Bristol-Myers Squibb Co. | 23 | 1,438 | ||||||
Jazz Pharmaceuticals plc (A) | 10 | 1,426 | ||||||
|
| |||||||
2,864 | ||||||||
|
| |||||||
Total Health Care – 14.4% |
| 18,859 | ||||||
Industrials |
| |||||||
Aerospace & Defense – 2.2% |
| |||||||
Boeing Co. (The) | 4 | 893 | ||||||
Raytheon Co. | 11 | 2,061 | ||||||
|
| |||||||
2,954 | ||||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 2.9% |
| |||||||
Caterpillar, Inc. | 30 | 3,747 | ||||||
|
| |||||||
Industrial Machinery – 3.2% |
| |||||||
Stanley Black & Decker, Inc. | 27 | 4,137 | ||||||
|
| |||||||
Railroads – 1.2% |
| |||||||
Union Pacific Corp. | 13 | 1,542 | ||||||
|
| |||||||
Research & Consulting Services – 2.8% |
| |||||||
Verisk Analytics, Inc., Class A (A) | 43 | 3,616 | ||||||
|
| |||||||
Trucking – 2.8% |
| |||||||
J.B. Hunt Transport Services, Inc. | 33 | 3,650 | ||||||
|
| |||||||
Total Industrials – 15.1% |
| 19,646 | ||||||
Information Technology |
| |||||||
Application Software – 7.7% |
| |||||||
Adobe Systems, Inc. (A) | 28 | 4,233 | ||||||
salesforce.com, Inc. (A) | 63 | 5,860 | ||||||
|
| |||||||
10,093 | ||||||||
|
| |||||||
Data Processing & Outsourced Services – 10.3% |
| |||||||
FleetCor Technologies, Inc. (A) | 20 | 3,095 | ||||||
MasterCard, Inc., Class A | 24 | 3,349 | ||||||
PayPal, Inc. (A) | 41 | 2,612 | ||||||
Visa, Inc., Class A | 42 | 4,391 | ||||||
|
| |||||||
13,447 | ||||||||
|
| |||||||
Home Entertainment Software – 0.9% |
| |||||||
Electronic Arts, Inc. (A) | 9 | 1,116 | ||||||
|
| |||||||
Internet Software & Services – 7.8% |
| |||||||
Alphabet, Inc., Class A (A) | 6 | 5,493 | ||||||
Alphabet, Inc., Class C (A) | — | * | 341 | |||||
Facebook, Inc., Class A (A) | 25 | 4,306 | ||||||
|
| |||||||
10,140 | ||||||||
|
| |||||||
Semiconductor Equipment – 2.1% |
| |||||||
Lam Research Corp. | 15 | 2,748 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Systems Software – 8.2% |
| |||||||
Microsoft Corp. | 120 | $ | 8,954 | |||||
Red Hat, Inc. (A) | 15 | 1,674 | ||||||
|
| |||||||
10,628 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 4.9% |
| |||||||
Apple, Inc. | 42 | 6,424 | ||||||
|
| |||||||
Total Information Technology – 41.9% |
| 54,596 | ||||||
Real Estate |
| |||||||
Specialized REITs – 2.0% |
| |||||||
American Tower Corp., Class A | 19 | 2,583 | ||||||
|
| |||||||
Total Real Estate – 2.0% |
| 2,583 | ||||||
TOTAL COMMON STOCKS – 99.0% |
| $ | 129,090 | |||||
(Cost: $91,108) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Master Note – 1.2% |
| |||||||
Toyota Motor Credit Corp. | ||||||||
1.450%, 10-4-17 (B) | $ | 1,573 | 1,573 | |||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 1.2% |
| $ | 1,573 | |||||
(Cost: $1,573) | ||||||||
TOTAL INVESTMENT |
| $ | 130,663 | |||||
(Cost: $92,681) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)% |
| (278 | ) | |||||
NET ASSETS – 100.0% |
| $ | 130,385 |
2017 | SEMIANNUAL REPORT | 117 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY TAX-MANAGED EQUITY FUND (in thousands) |
SEPTEMBER 30, 2017 (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, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 129,090 | $ | — | $ | — | ||||||
Short-Term Securities | — | 1,573 | — | |||||||||
Total | $ | 129,090 | $ | 1,573 | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
LIBOR = London Inberbank Offered Rate
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
118 | SEMIANNUAL REPORT | 2017 |
Table of Contents
PORTFOLIO HIGHLIGHTS | IVY VALUE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)
Asset Allocation
Stocks | 92.0% | |||
Financials | 33.0% | |||
Health Care | 14.0% | |||
Energy | 10.6% | |||
Consumer Discretionary | 9.2% | |||
Information Technology | 7.4% | |||
Consumer Staples | 6.9% | |||
Industrials | 5.2% | |||
Materials | 3.1% | |||
Real Estate | 2.6% | |||
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | 8.0% |
Lipper Rankings
Category: Large-Cap Value Funds | Rank | Percentile | ||||
1 Year | 396/457 | 87 | ||||
3 Year | 386/403 | 96 | ||||
5 Year | 263/363 | 73 | ||||
10 Year | 122/253 | 49 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Top 10 Equity Holdings
Company | Sector | Industry | ||
Energy Transfer Partners L.P. | Energy | Oil & Gas Storage & Transportation | ||
JPMorgan Chase & Co. | Financials | Other Diversified Financial Services | ||
Citigroup, Inc. | Financials | Other Diversified Financial Services | ||
Wal-Mart Stores, Inc. | Consumer Staples | Hypermarkets & Super Centers | ||
Capital One Financial Corp. | Financials | Consumer Finance | ||
Synchrony Financial | Financials | Consumer Finance | ||
State Street Corp. | Financials | Asset Management & Custody Banks | ||
Amgen, Inc. | Health Care | Biotechnology | ||
Dow Chemical Co. (The) | Materials | Diversified Chemicals | ||
MetLife, Inc. | Financials | Life & Health Insurance |
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.
2017 | �� | SEMIANNUAL REPORT | 119 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY VALUE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
COMMON STOCKS | Shares | Value | ||||||
Consumer Discretionary |
| |||||||
Cable & Satellite – 2.3% |
| |||||||
Comcast Corp., Class A | 271 | $ | 10,443 | |||||
|
| |||||||
General Merchandise Stores – 2.5% |
| |||||||
Target Corp. | 192 | 11,342 | ||||||
|
| |||||||
Home Improvement Retail – 2.4% |
| |||||||
Lowe’s Co., Inc. | 138 | 11,032 | ||||||
|
| |||||||
Housewares & Specialties – 2.0% |
| |||||||
Newell Rubbermaid, Inc. | 221 | 9,434 | ||||||
|
| |||||||
Total Consumer Discretionary – 9.2% |
| 42,251 | ||||||
Consumer Staples |
| |||||||
Drug Retail – 3.0% |
| |||||||
CVS Caremark Corp. | 170 | 13,792 | ||||||
|
| |||||||
Hypermarkets & Super Centers – 3.9% |
| |||||||
Wal-Mart Stores, Inc. | 227 | 17,714 | ||||||
|
| |||||||
Total Consumer Staples – 6.9% |
| 31,506 | ||||||
Energy |
| |||||||
Oil & Gas Equipment & Services – 2.6% |
| |||||||
Baker Hughes, Inc. | 321 | 11,737 | ||||||
|
| |||||||
Oil & Gas Refining & Marketing – 2.6% |
| |||||||
Marathon Petroleum Corp. | 216 | 12,124 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 5.4% |
| |||||||
Energy Transfer Partners L.P. | 1,360 | 24,880 | ||||||
|
| |||||||
Total Energy – 10.6% |
| 48,741 | ||||||
Financials |
| |||||||
Asset Management & Custody Banks – 3.3% |
| |||||||
State Street Corp. | 156 | 14,943 | ||||||
|
| |||||||
Consumer Finance – 7.3% |
| |||||||
Capital One Financial Corp. | 199 | 16,864 | ||||||
Synchrony Financial | 531 | 16,475 | ||||||
|
| |||||||
33,339 | ||||||||
|
| |||||||
Life & Health Insurance – 3.1% |
| |||||||
MetLife, Inc. | 251 | 13,039 | ||||||
MetLife, Inc. (A) | 21 | 1,288 | ||||||
|
| |||||||
14,327 | ||||||||
|
| |||||||
Mortgage REITs – 2.6% |
| |||||||
American Capital Agency Corp. | 549 | 11,892 | ||||||
|
| |||||||
Multi-Line Insurance – 2.6% |
| |||||||
American International Group, Inc. | 195 | 11,940 | ||||||
|
| |||||||
Other Diversified Financial Services – 9.5% |
| |||||||
Citigroup, Inc. | 288 | 20,935 | ||||||
JPMorgan Chase & Co. | 239 | 22,846 | ||||||
|
| |||||||
43,781 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Property & Casualty Insurance – 1.9% |
| |||||||
Allstate Corp. (The) | 96 | $ | 8,814 | |||||
|
| |||||||
Regional Banks – 2.7% |
| |||||||
Fifth Third Bancorp | 439 | 12,272 | ||||||
|
| |||||||
Total Financials – 33.0% |
| 151,308 | ||||||
Health Care |
| |||||||
Biotechnology – 3.2% |
| |||||||
Amgen, Inc. | 78 | 14,618 | ||||||
|
| |||||||
Health Care Facilities – 2.4% |
| |||||||
HCA Holdings, Inc. (A) | 140 | 11,119 | ||||||
|
| |||||||
Managed Health Care – 5.0% |
| |||||||
Aetna, Inc. | 73 | 11,544 | ||||||
Cigna Corp. | 61 | 11,310 | ||||||
|
| |||||||
22,854 | ||||||||
|
| |||||||
Pharmaceuticals – 3.4% |
| |||||||
Jazz Pharmaceuticals plc (A) | 70 | 10,237 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 307 | 5,405 | ||||||
|
| |||||||
15,642 | ||||||||
|
| |||||||
Total Health Care – 14.0% |
| 64,233 | ||||||
Industrials |
| |||||||
Electrical Components & Equipment – 2.6% |
| |||||||
Eaton Corp. | 154 | 11,818 | ||||||
|
| |||||||
Industrial Machinery – 2.6% |
| |||||||
Timken Co. (The) | 242 | 11,759 | ||||||
|
| |||||||
Total Industrials – 5.2% |
| 23,577 | ||||||
Information Technology |
| |||||||
Semiconductors – 2.7% |
| |||||||
Micron Technology, Inc.(A) | 313 | 12,306 | ||||||
|
| |||||||
Systems Software – 2.3% |
| |||||||
Microsoft Corp. | 140 | 10,399 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 2.4% |
| |||||||
Western Digital Corp. | 131 | 11,275 | ||||||
|
| |||||||
Total Information Technology – 7.4% |
| 33,980 | ||||||
Materials |
| |||||||
Diversified Chemicals – 3.1% |
| |||||||
Dow Chemical Co. (The) | 208 | 14,372 | ||||||
|
| |||||||
Total Materials – 3.1% |
| 14,372 | ||||||
Real Estate |
| |||||||
Health Care REITs – 2.0% |
| |||||||
Welltower, Inc. | 128 | 8,989 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Specialized REITs – 0.6% |
| |||||||
Uniti Group, Inc. | 204 | $ | 2,986 | |||||
|
| |||||||
Total Real Estate – 2.6% |
| 11,975 | ||||||
TOTAL COMMON STOCKS – 92.0% |
| $ | 421,943 | |||||
(Cost: $361,501) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper (B) – 6.9% |
| |||||||
E.I. du Pont de Nemours and Co., | ||||||||
1.460%, 10-17-17 | $ | 5,000 | 4,997 | |||||
J.M. Smucker Co. (The), | ||||||||
1.390%, 10-2-17 | 1,571 | 1,571 | ||||||
John Deere Canada ULC (GTD by Deere & Co.), | ||||||||
1.190%, 10-23-17 | 5,000 | 4,996 | ||||||
McCormick & Co., Inc., | ||||||||
1.341%, 10-4-17 | 15,000 | 14,997 | ||||||
Medtronic Global Holdings SCA, | ||||||||
1.580%, 10-10-17 | 5,000 | 4,998 | ||||||
|
| |||||||
31,559 | ||||||||
|
| |||||||
Master Note – 0.5% |
| |||||||
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), | ||||||||
1.450%, 10-4-17 (C) | 2,385 | 2,385 | ||||||
|
| |||||||
Municipal Obligations – 1.0% |
| |||||||
NY Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2012A (GTD by Bank of America N.A.) (BVAL plus 18 bps), | ||||||||
0.970%, 10-7-17 (C) | 4,500 | 4,500 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 8.4% |
| $ | 38,444 | |||||
(Cost: $38,446) |
| |||||||
TOTAL INVESTMENT SECURITIES – 100.4% |
| $ | 460,387 | |||||
(Cost: $399,947) |
| |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.4)% |
| (1,621 | ) | |||||
NET ASSETS – 100.0% |
| $ | 458,766 |
120 | SEMIANNUAL REPORT | 2017 |
Table of Contents
SCHEDULE OF INVESTMENTS | IVY VALUE FUND (in thousands) |
SEPTEMBER 30, 2017 (UNAUDITED)
Notes to Schedule of Investments
(A) | No dividends were paid during the preceding 12 months. |
(B) | Rate shown is the yield to maturity at September 30, 2017. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description. |
The following total return swap agreements were outstanding at September 30, 2017:
Underlying Security | Counterparty | Maturity Date | Notional Amount | Financing Fee(1)(2) | Value | Upfront Payments/ (Receipts) | Unrealized Appreciation | |||||||||||||||||||||||
Russell 1000 Value Total Return index | Morgan Stanley & Co. International plc | 09/26/2018 | $ | 26,646 | | 1-Month LIBOR plus 45 bps | | $ | 142 | $ | — | $ | 142 | |||||||||||||||||
|
|
(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 written options were outstanding at September 30, 2017 (contracts and exercise prices unrounded):
Underlying Security | Counterparty, if OTC | Type | Number of Contracts | Notional Amount | Expiration Month | Exercise Price | Premium Received | Value | ||||||||||||||||||||||
MetLife, Inc. | N/A | Call | 211 | 21 | November 2017 | $ | 60.00 | $ | 22 | $ | (56 | ) | ||||||||||||||||||
Wal-Mart Stores, Inc. | N/A | Put | 567 | 57 | October 2017 | 72.50 | 36 | (15 | ) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
$ | 58 | $ | (71 | ) | ||||||||||||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2017. 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 | $ | 421,943 | $ | — | $ | — | ||||||
Short-Term Securities | — | 38,444 | — | |||||||||
Total | $ | 421,943 | $ | 38,444 | $ | — | ||||||
Total Return Swaps | $ | — | $ | 142 | $ | — | ||||||
Liabilities | ||||||||||||
Written Options | $ | 71 | $ | — | $ | — |
During the period ended September 30, 2017, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
BVAL = Bloomberg Valuation Benchmark Curve
GTD = Guaranteed
LIBOR = London Inberbank Offered Rate
OTC = Over the Counter
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 121 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES | IVY FUNDS |
AS OF SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands, except per share amounts) | Ivy Advantus 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+ | $ | 969,602 | $ | 894,525 | $ | 199,988 | $ | 364,027 | $ | 1,867,875 | $ | 264,722 | $ | 196,040 | ||||||||||||||
Investments at Value | 969,602 | 894,525 | 199,988 | 364,027 | 1,867,875 | 264,722 | 196,040 | |||||||||||||||||||||
Cash | 12 | 1 | 3 | 1 | 8,640 | — | * | 515 | ||||||||||||||||||||
Cash denominated in foreign currencies at value+ | — | — | — | * | — | 1,531 | — | — | ||||||||||||||||||||
Restricted cash | — | — | — | — | 49 | 975 | — | |||||||||||||||||||||
Investment securities sold receivable | 5,166 | 1,539 | 6 | — | 25,706 | — | 729 | |||||||||||||||||||||
Dividends and interest receivable | 6,401 | 208 | 645 | 405 | 1,671 | 538 | 1,934 | |||||||||||||||||||||
Capital shares sold receivable | 1,696 | 881 | 61 | 352 | 16,350 | 278 | 287 | |||||||||||||||||||||
Receivable from affiliates | 555 | 310 | — | 11 | 490 | — | 205 | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | 245 | — | — | — | — | |||||||||||||||||||||
Variation margin receivable | 49 | — | — | — | — | — | — | |||||||||||||||||||||
Prepaid and other assets | 74 | 77 | 51 | 63 | 139 | 46 | 44 | |||||||||||||||||||||
Total Assets | 983,555 | 897,541 | 200,999 | 364,859 | 1,922,451 | 266,559 | 199,754 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Investment securities purchased payable | 31,531 | 1,803 | 87 | — | 53,618 | 316 | 9,579 | |||||||||||||||||||||
Capital shares redeemed payable | 1,647 | 1,525 | 262 | 478 | 4,574 | 340 | 438 | |||||||||||||||||||||
Distributions payable | 214 | — | — | — | — | — | — | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees payable | 72 | 103 | 99 | 29 | 70 | 63 | 10 | |||||||||||||||||||||
Distribution and service fees payable | 4 | 11 | 2 | 4 | 12 | 2 | 2 | |||||||||||||||||||||
Shareholder servicing payable | 153 | 165 | 66 | 83 | 313 | 51 | 41 | |||||||||||||||||||||
Investment management fee payable | 27 | 34 | 9 | 14 | 89 | 13 | 7 | |||||||||||||||||||||
Accounting services fee payable | 20 | 21 | 6 | 11 | 30 | 8 | 6 | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | — | — | 465 | — | |||||||||||||||||||||
Variation margin payable | 62 | — | — | — | — | — | — | |||||||||||||||||||||
Other liabilities | 42 | 16 | 11 | 5 | 75 | 9 | 13 | |||||||||||||||||||||
Total Liabilities | 33,772 | 3,678 | 542 | 624 | 58,781 | 1,267 | 10,096 | |||||||||||||||||||||
Total Net Assets | $ | 949,783 | $ | 893,863 | $ | 200,457 | $ | 364,235 | $ | 1,863,670 | $ | 265,292 | $ | 189,658 | ||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Capital paid in (shares authorized—unlimited) | $ | 950,187 | $ | 644,964 | $ | 177,042 | $ | 255,803 | $ | 1,562,380 | $ | 347,174 | $ | 205,072 | ||||||||||||||
Undistributed (distributions in excess of) net investment income | (496 | ) | 2,132 | 1,788 | 1,819 | 6,042 | 3,172 | 92 | ||||||||||||||||||||
Accumulated net realized gain (loss) | (13,706 | ) | 68,449 | (14,178 | ) | 21,810 | (109,363 | ) | (129,829 | ) | (14,310 | ) | ||||||||||||||||
Net unrealized appreciation (depreciation) | 13,798 | 178,318 | 35,805 | 84,803 | 404,611 | 44,775 | (1,196 | ) | ||||||||||||||||||||
Total Net Assets | $ | 949,783 | $ | 893,863 | $ | 200,457 | $ | 364,235 | $ | 1,863,670 | $ | 265,292 | $ | 189,658 | ||||||||||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
Class A | 18,784 | 18,215 | 5,284 | 7,144 | 24,136 | 2,445 | 4,691 | |||||||||||||||||||||
Class B | 377 | 522 | 45 | 337 | 275 | 20 | 206 | |||||||||||||||||||||
Class C | 2,074 | 8,835 | 711 | 1,909 | 3,924 | 248 | 1,617 | |||||||||||||||||||||
Class E | 379 | 865 | N/A | 337 | 15 | 3 | N/A | |||||||||||||||||||||
Class I | 45,477 | 19,764 | 4,751 | 8,784 | 48,798 | 2,147 | 9,812 | |||||||||||||||||||||
Class N | 19,661 | 7,017 | 67 | 128 | 11,610 | 3,130 | 2,605 | |||||||||||||||||||||
Class R | 1,031 | 192 | 19 | 24 | 886 | 19 | 73 | |||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | 14 | N/A | N/A | |||||||||||||||||||||
Class Y | 425 | 3,540 | 114 | 271 | 2,071 | 37 | 296 | |||||||||||||||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||||||||||||||||||
Class A | $10.77 | $14.67 | $18.12 | $19.24 | $19.99 | $32.71 | $9.83 | |||||||||||||||||||||
Class B | $10.77 | $12.30 | $16.35 | $18.88 | $16.44 | $29.95 | $9.82 | |||||||||||||||||||||
Class C | $10.77 | $12.74 | $16.98 | $18.99 | $17.21 | $30.79 | $9.83 | |||||||||||||||||||||
Class E | $10.77 | $14.61 | N/A | $19.17 | $20.31 | $33.01 | N/A | |||||||||||||||||||||
Class I | $10.77 | $16.28 | $18.56 | $19.31 | $20.65 | $33.08 | $9.83 | |||||||||||||||||||||
Class N | $10.77 | $16.31 | $18.63 | $19.34 | $20.76 | $33.26 | $9.83 | |||||||||||||||||||||
Class R | $10.77 | $14.56 | $18.08 | $19.21 | $19.83 | $32.66 | $9.81 | |||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | $20.00 | N/A | N/A | |||||||||||||||||||||
Class Y | $10.77 | $15.84 | $18.39 | $19.27 | $20.38 | $33.00 | $9.83 | |||||||||||||||||||||
+COST | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at cost | $ | 955,795 | $ | 716,207 | $ | 164,334 | $ | 279,224 | $ | 1,463,223 | $ | 219,489 | $ | 197,236 | ||||||||||||||
Cash denominated in foreign currencies at cost | — | — | — | — | 1,526 | — | — |
* | 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.
122 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES | IVY FUNDS |
AS OF SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands, except per share amounts) | Ivy Global Equity Income Fund | Ivy Global Growth Fund | Ivy Global Income Allocation Fund | Ivy Government Money Market Fund | Ivy High Income Fund | Ivy International Core Equity Fund | Ivy Large Cap Growth Fund | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value+ | $ | 304,669 | $ | 447,549 | $ | 688,562 | $ | 166,874 | $ | 4,325,966 | $ | 6,686,562 | $ | 1,860,046 | ||||||||||||||
Investments in affiliated securities at value+ | — | — | — | — | 34,492 | — | — | |||||||||||||||||||||
Investments at Value | 304,669 | 447,549 | 688,562 | 166,874 | 4,360,458 | 6,686,562 | 1,860,046 | |||||||||||||||||||||
Cash | 1 | — | 231 | 926 | 10,496 | — | * | 1 | ||||||||||||||||||||
Cash denominated in foreign currencies at value+ | — | 1,580 | — | — | — | 30,853 | — | |||||||||||||||||||||
Restricted cash | — | — | — | — | 160 | 70 | — | |||||||||||||||||||||
Investment securities sold receivable | 1,796 | 769 | — | — | 29,915 | 62,244 | 6,897 | |||||||||||||||||||||
Dividends and interest receivable | 828 | 840 | 6,419 | 207 | 71,813 | 16,289 | 961 | |||||||||||||||||||||
Capital shares sold receivable | 348 | 142 | 337 | 3,525 | 10,066 | 14,430 | 1,078 | |||||||||||||||||||||
Receivable from affiliates | — | * | — | 2 | 104 | 41 | 8 | 80 | ||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 249 | — | 33 | — | 23 | 342 | — | |||||||||||||||||||||
Prepaid and other assets | 59 | 61 | 60 | 52 | 215 | 224 | 105 | |||||||||||||||||||||
Total Assets | 307,950 | 450,941 | 695,644 | 171,688 | 4,483,187 | 6,811,022 | 1,869,168 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Investment securities purchased payable | 1,025 | 10,050 | 136 | — | 60,260 | 24,203 | — | |||||||||||||||||||||
Capital shares redeemed payable | 601 | 688 | 1,105 | 4,011 | 13,638 | 4,798 | 2,657 | |||||||||||||||||||||
Distributions payable | — | — | — | 8 | 2,279 | — | — | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees payable | 7 | 79 | 46 | 25 | 226 | 134 | 130 | |||||||||||||||||||||
Overdraft due to custodian | — | 5 | — | — | — | — | — | |||||||||||||||||||||
Distribution and service fees payable | 2 | 3 | 5 | 1 | 77 | 33 | 14 | |||||||||||||||||||||
Shareholder servicing payable | 61 | 98 | 136 | 54 | 854 | 921 | 327 | |||||||||||||||||||||
Investment management fee payable | 12 | 21 | 27 | 3 | 128 | 279 | 69 | |||||||||||||||||||||
Accounting services fee payable | 8 | 12 | 15 | 6 | 23 | 23 | 23 | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 546 | — | 444 | — | 154 | 1,444 | — | |||||||||||||||||||||
Other liabilities | 9 | 19 | 497 | 95 | 71 | 105 | 25 | |||||||||||||||||||||
Total Liabilities | 2,271 | 10,975 | 2,411 | 4,203 | 77,710 | 31,940 | 3,245 | |||||||||||||||||||||
Total Net Assets | $ | 305,679 | $ | 439,966 | $ | 693,233 | $ | 167,485 | $ | 4,405,477 | $ | 6,779,082 | $ | 1,865,923 | ||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Capital paid in (shares authorized – unlimited) | $ | 272,793 | $ | 321,445 | $ | 711,129 | $ | 167,482 | $ | 5,228,673 | $ | 5,991,626 | $ | 1,097,088 | ||||||||||||||
Undistributed (distributions in excess of) net investment income | 492 | 1,421 | 2,547 | — | — | 69,401 | 1,454 | |||||||||||||||||||||
Accumulated net realized gain (loss) | (18,618 | ) | 29,975 | (53,813 | ) | 3 | (591,479 | ) | (108,918 | ) | 62,854 | |||||||||||||||||
Net unrealized appreciation (depreciation) | 51,012 | 87,125 | 33,370 | — | (231,717 | ) | 826,973 | 704,527 | ||||||||||||||||||||
Total Net Assets | $ | 305,679 | $ | 439,966 | $ | 693,233 | $ | 167,485 | $ | 4,405,477 | $ | 6,779,082 | $ | 1,865,923 | ||||||||||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
Class A | 4,908 | 2,542 | 13,264 | 130,786 | 160,119 | 33,547 | 24,601 | |||||||||||||||||||||
Class B | 140 | 40 | 224 | 3,867 | 9,177 | 498 | 549 | |||||||||||||||||||||
Class C | 915 | 608 | 2,848 | 22,668 | 118,446 | 14,024 | 5,330 | |||||||||||||||||||||
Class E | N/A | 3 | 214 | 5,720 | 1,278 | 374 | 703 | |||||||||||||||||||||
Class I | 16,185 | 5,290 | 26,295 | N/A | 224,115 | 196,889 | 44,540 | |||||||||||||||||||||
Class N | 99 | 592 | 2,099 | 4,440 | 8,635 | 68,310 | 7,136 | |||||||||||||||||||||
Class R | 26 | 42 | 19 | N/A | 8,893 | 5,346 | 1,019 | |||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | 33 | 13 | N/A | |||||||||||||||||||||
Class Y | 342 | 221 | 193 | N/A | 47,100 | 25,979 | 1,585 | |||||||||||||||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||||||||||||||||||
Class A | $13.51 | $46.96 | $15.28 | $1.00 | $7.62 | $19.60 | $21.43 | |||||||||||||||||||||
Class B | $13.51 | $40.10 | $14.99 | $1.00 | $7.62 | $17.36 | $16.80 | |||||||||||||||||||||
Class C | $13.51 | $40.55 | $15.09 | $1.00 | $7.62 | $17.42 | $18.07 | |||||||||||||||||||||
Class E | N/A | $47.31 | $15.28 | $1.00 | $7.62 | $19.73 | $21.40 | |||||||||||||||||||||
Class I | $13.52 | $47.89 | $15.41 | N/A | $7.62 | $19.75 | $22.47 | |||||||||||||||||||||
Class N | $13.53 | $48.14 | $15.43 | $1.00 | $7.62 | $19.83 | $22.60 | |||||||||||||||||||||
Class R | $13.52 | $46.61 | $15.27 | N/A | $7.62 | $19.57 | $20.68 | |||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | $7.62 | $19.61 | N/A | |||||||||||||||||||||
Class Y | $13.51 | $47.18 | $15.35 | N/A | $7.62 | $19.74 | $21.95 | |||||||||||||||||||||
+COST | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at cost | $ | 253,375 | $ | 360,419 | $ | 654,313 | $ | 166,874 | $ | 4,545,106 | $ | 5,859,580 | $ | 1,155,519 | ||||||||||||||
Investments in affiliated securities at cost | — | — | — | — | 46,943 | — | — | |||||||||||||||||||||
Cash denominated in foreign currencies at cost | — | 1,581 | — | — | — | 29,990 | — |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 123 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES | IVY FUNDS |
AS OF SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands, except per share amounts) | 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 Municipal Bond Fund | Ivy Municipal High Income Fund | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value+ | $ | 1,442,869 | $ | 261 | $ | 164,797 | $ | 2,349,563 | $ | 337,636 | $ | 175,272 | $ | 898,837 | ||||||||||||||
Investments in affiliated securities at value+ | — | 206,209 | — | — | — | — | 5,112 | |||||||||||||||||||||
Investments at Value | 1,442,869 | 206,470 | 164,797 | 2,349,563 | 337,636 | 175,272 | 903,949 | |||||||||||||||||||||
Cash | 2,071 | 1 | 1 | 54 | 1 | 1 | 1 | |||||||||||||||||||||
Restricted cash | — | — | — | — | — | 99 | 607 | |||||||||||||||||||||
Investment securities sold receivable | — | 61 | — | 1,701 | 7,500 | — | — | |||||||||||||||||||||
Dividends and interest receivable | 11,650 | — | * | 6 | 451 | 490 | 2,139 | 15,046 | ||||||||||||||||||||
Capital shares sold receivable | 2,625 | 261 | 117 | 2,651 | 524 | 194 | 2,141 | |||||||||||||||||||||
Receivable from affiliates | 1 | 12 | — | 47 | 102 | — | * | 178 | ||||||||||||||||||||
Prepaid and other assets | 101 | 46 | 37 | 121 | 82 | 40 | 67 | |||||||||||||||||||||
Total Assets | 1,459,317 | 206,851 | 164,958 | 2,354,588 | 346,335 | 177,745 | 921,989 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Investment securities purchased payable | 6,068 | — | — | 7,229 | 7,550 | — | — | |||||||||||||||||||||
Capital shares redeemed payable | 3,441 | 295 | 380 | 3,695 | 540 | 153 | 2,187 | |||||||||||||||||||||
Distributions payable | 211 | — | — | — | — | 32 | 299 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees payable | 86 | 14 | 5 | 123 | 3 | 14 | 40 | |||||||||||||||||||||
Distribution and service fees payable | 11 | 1 | 2 | 24 | 2 | 2 | 12 | |||||||||||||||||||||
Shareholder servicing payable | 236 | 21 | 45 | 479 | 56 | 27 | 127 | |||||||||||||||||||||
Investment management fee payable | 36 | 1 | 8 | 107 | 16 | 5 | 26 | |||||||||||||||||||||
Accounting services fee payable | 23 | 4 | 6 | 23 | 9 | 6 | 20 | |||||||||||||||||||||
Variation margin payable | — | — | — | — | — | 1 | 6 | |||||||||||||||||||||
Written options at value+ | — | — | — | 966 | — | — | — | |||||||||||||||||||||
Other liabilities | 28 | 2 | 7 | 41 | 8 | 7 | 11 | |||||||||||||||||||||
Total Liabilities | 10,140 | 338 | 453 | 12,687 | 8,184 | 247 | 2,728 | |||||||||||||||||||||
Total Net Assets | $ | 1,449,177 | $ | 206,513 | $ | 164,505 | $ | 2,341,901 | $ | 338,151 | $ | 177,498 | $ | 919,261 | ||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Capital paid in (shares authorized – unlimited) | $ | 1,461,912 | $ | 172,464 | $ | 119,114 | $ | 1,592,423 | $ | 294,249 | $ | 170,774 | $ | 933,414 | ||||||||||||||
Undistributed (distributions in excess of) net investment income | (450 | ) | 312 | (1,412 | ) | (16,066 | ) | 2,543 | 204 | 2,636 | ||||||||||||||||||
Accumulated net realized gain (loss) | (16,732 | ) | (4,826 | ) | (513 | ) | 134,396 | (9,709 | ) | (2,980 | ) | (46,453 | ) | |||||||||||||||
Net unrealized appreciation | 4,447 | 38,563 | 47,316 | 631,148 | 51,068 | 9,500 | 29,664 | |||||||||||||||||||||
Total Net Assets | $ | 1,449,177 | $ | 206,513 | $ | 164,505 | $ | 2,341,901 | $ | 338,151 | $ | 177,498 | $ | 919,261 | ||||||||||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
Class A | 44,075 | 6,685 | 3,201 | 18,608 | 7,829 | 5,208 | 39,390 | |||||||||||||||||||||
Class B | 694 | 80 | 57 | 909 | N/A | 162 | 1,959 | |||||||||||||||||||||
Class C | 6,634 | 410 | 292 | 10,414 | 992 | 1,728 | 31,331 | |||||||||||||||||||||
Class E | 450 | 45 | N/A | 419 | 204 | N/A | N/A | |||||||||||||||||||||
Class I | 72,421 | 10,171 | 2,790 | 48,559 | 12,280 | 7,697 | 104,918 | |||||||||||||||||||||
Class N | 8,102 | 23 | 112 | 5,470 | 3,979 | 22 | 53 | |||||||||||||||||||||
Class R | 70 | 77 | 29 | 2,252 | 205 | N/A | N/A | |||||||||||||||||||||
Class Y | 1,254 | 61 | 50 | 12,025 | 494 | 49 | 2,762 | |||||||||||||||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||||||||||||||||||
Class A | $10.84 | $11.74 | $24.94 | $23.11 | $13.00 | $11.94 | $5.10 | |||||||||||||||||||||
Class B | $10.84 | $11.45 | $23.30 | $18.83 | N/A | $11.94 | $5.10 | |||||||||||||||||||||
Class C | $10.84 | $11.49 | $23.70 | $20.01 | $12.95 | $11.94 | $5.10 | |||||||||||||||||||||
Class E | $10.84 | $11.75 | N/A | $22.59 | $13.01 | N/A | N/A | |||||||||||||||||||||
Class I | $10.84 | $11.80 | $25.63 | $24.72 | $13.02 | $11.94 | $5.10 | |||||||||||||||||||||
Class N | $10.84 | $11.80 | $25.82 | $24.87 | $13.03 | $11.94 | $5.10 | |||||||||||||||||||||
Class R | $10.84 | $11.70 | $24.79 | $22.62 | $12.99 | N/A | N/A | |||||||||||||||||||||
Class Y | $10.84 | $11.74 | $25.81 | $24.06 | $13.00 | $11.94 | $5.10 | |||||||||||||||||||||
+COST | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at cost | $ | 1,438,422 | $ | 261 | $ | 117,481 | $ | 1,718,251 | $ | 286,568 | $ | 165,853 | $ | 870,744 | ||||||||||||||
Investments in affiliated securities at cost | — | 167,646 | — | — | — | — | 3,998 | |||||||||||||||||||||
Written options premiums received at cost | — | — | — | 802 | — | — | — |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
124 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES | IVY FUNDS |
AS OF SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands, except per share amounts) | Ivy Small Cap Core Fund | Ivy Small Cap Growth Fund | Ivy Tax- Managed | Ivy Value Fund | ||||||||||||
ASSETS |
| |||||||||||||||
Investments in unaffiliated securities at value+ | $ | 616,075 | $ | 1,121,604 | $ | 130,663 | $ | 460,387 | ||||||||
Investments at Value | 616,075 | 1,121,604 | 130,663 | 460,387 | ||||||||||||
Cash | 1 | 1 | 1 | — | * | |||||||||||
Investment securities sold receivable | 3,691 | 1,919 | 568 | 736 | ||||||||||||
Dividends and interest receivable | 292 | 100 | 62 | 582 | ||||||||||||
Capital shares sold receivable | 2,414 | 1,056 | 151 | 405 | ||||||||||||
Receivable from affiliates | — | 10 | — | * | — | |||||||||||
Swaps agreements, at value | — | 632 | — | 142 | ||||||||||||
Prepaid and other assets | 84 | 85 | 36 | 49 | ||||||||||||
Total Assets | 622,557 | 1,125,407 | 131,481 | 462,301 | ||||||||||||
LIABILITIES | ||||||||||||||||
Investment securities purchased payable | 6,948 | 2,174 | 988 | 2,739 | ||||||||||||
Capital shares redeemed payable | 685 | 1,153 | 67 | 589 | ||||||||||||
Independent Trustees and Chief Compliance Officer fees payable | 33 | 165 | 2 | 21 | ||||||||||||
Distribution and service fees payable | 5 | 17 | 1 | 2 | ||||||||||||
Shareholder servicing payable | 128 | 203 | 21 | 73 | ||||||||||||
Investment management fee payable | 28 | 52 | 5 | 18 | ||||||||||||
Accounting services fee payable | 15 | 24 | 6 | 12 | ||||||||||||
Written options at value+ | — | — | — | 71 | ||||||||||||
Other liabilities | 13 | 18 | 6 | 10 | ||||||||||||
Total Liabilities | 7,855 | 3,806 | 1,096 | 3,535 | ||||||||||||
Total Net Assets | $ | 614,702 | $ | 1,121,601 | $ | 130,385 | $ | 458,766 | ||||||||
NET ASSETS | ||||||||||||||||
Capital paid in (shares authorized – unlimited) | $ | 494,707 | $ | 690,125 | $ | 89,895 | $ | 387,417 | ||||||||
Undistributed (distributions in excess of) net investment income | 831 | (6,595 | ) | (52 | ) | 4,979 | ||||||||||
Accumulated net realized gain | 4,050 | 122,997 | 2,560 | 5,797 | ||||||||||||
Net unrealized appreciation | 115,114 | 315,074 | 37,982 | 60,573 | ||||||||||||
Total Net Assets | $ | 614,702 | $ | 1,121,601 | $ | 130,385 | $ | 458,766 | ||||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||||||
Class A | 10,454 | 13,459 | 1,858 | 4,121 | ||||||||||||
Class B | 214 | 539 | 69 | 93 | ||||||||||||
Class C | 2,137 | 11,558 | 289 | 787 | ||||||||||||
Class E | 10 | 472 | N/A | 8 | ||||||||||||
Class I | 15,155 | 15,581 | 3,371 | 7,603 | ||||||||||||
Class N | 2,354 | 4,544 | 14 | 6,932 | ||||||||||||
Class R | 518 | 2,766 | N/A | 15 | ||||||||||||
Class T | 14 | 14 | N/A | N/A | ||||||||||||
Class Y | 938 | 5,878 | 26 | 23 | ||||||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||||||
Class A | $18.67 | $18.87 | $23.09 | $23.38 | ||||||||||||
Class B | $15.19 | $14.30 | $22.05 | $21.70 | ||||||||||||
Class C | $16.21 | $15.58 | $21.96 | $22.55 | ||||||||||||
Class E | $19.38 | $18.71 | N/A | $23.47 | ||||||||||||
Class I | $20.15 | $24.08 | $23.35 | $23.47 | ||||||||||||
Class N | $20.31 | $24.21 | $23.36 | $23.53 | ||||||||||||
Class R | $18.56 | $18.55 | N/A | $23.35 | ||||||||||||
Class T | $18.68 | $18.87 | N/A | N/A | ||||||||||||
Class Y | $19.57 | $22.84 | $23.13 | $23.42 | ||||||||||||
+COST | ||||||||||||||||
Investments in unaffiliated securities at cost | $ | 500,961 | $ | 807,178 | $ | 92,681 | $ | 399,947 | ||||||||
Written options premiums received at cost | — | — | — | 58 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 125 |
Table of Contents
STATEMENTS OF OPERATIONS | IVY FUNDS |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands) | Ivy Advantus Bond Fund | Ivy Core Equity Fund | Ivy Cundill Global Value Fund | Ivy Dividend Opportunities Fund | Ivy Emerging Markets Equity Fund(1) | Ivy European Opportunities Fund | Ivy Global Bond Fund | |||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends from unaffiliated securities | $ | 195 | $ | 7,062 | $ | 2,503 | $ | 5,293 | $ | 16,456 | $ | 4,035 | $ | 301 | ||||||||||||||
Foreign dividend withholding tax | — | (56 | ) | (121 | ) | (77 | ) | (1,878 | ) | (385 | ) | (8 | ) | |||||||||||||||
Interest and amortization from unaffiliated securities | 15,376 | 65 | 1 | 46 | 88 | 19 | 3,068 | |||||||||||||||||||||
Foreign interest withholding tax | — | — | — | — | — | * | — | — | ||||||||||||||||||||
Total Investment Income | 15,571 | 7,071 | 2,383 | 5,262 | 14,666 | 3,669 | 3,361 | |||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Investment management fee | 2,189 | 3,380 | 1,016 | 1,301 | 6,059 | 942 | 512 | |||||||||||||||||||||
Distribution and service fees: | ||||||||||||||||||||||||||||
Class A | 255 | 331 | 118 | 173 | 483 | 96 | 59 | |||||||||||||||||||||
Class B | 22 | 35 | 4 | 34 | 22 | 3 | 11 | |||||||||||||||||||||
Class C | 119 | 566 | 62 | 189 | 255 | 38 | 74 | |||||||||||||||||||||
Class E | 5 | 15 | N/A | 8 | — | * | — | * | N/A | |||||||||||||||||||
Class R | 25 | 7 | 1 | 1 | 36 | 2 | 2 | |||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | — | * | N/A | N/A | ||||||||||||||||||||
Class Y | 6 | 75 | 3 | 7 | 43 | 1 | 4 | |||||||||||||||||||||
Shareholder servicing: | ||||||||||||||||||||||||||||
Class A | 245 | 251 | 172 | 143 | 512 | 137 | 62 | |||||||||||||||||||||
Class B | 10 | 12 | 4 | 8 | 11 | 2 | 5 | |||||||||||||||||||||
Class C | 24 | 88 | 12 | 28 | 49 | 10 | 13 | |||||||||||||||||||||
Class E | 8 | 23 | N/A | 13 | — | * | — | * | N/A | |||||||||||||||||||
Class I | 386 | 278 | 82 | 146 | 574 | 66 | 78 | |||||||||||||||||||||
Class N | 7 | 9 | — | * | — | * | 8 | 2 | — | * | ||||||||||||||||||
Class R | 12 | 3 | — | * | 1 | 19 | 1 | 1 | ||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | — | * | N/A | N/A | ||||||||||||||||||||
Class Y | 4 | 45 | 2 | 4 | 29 | 1 | 2 | |||||||||||||||||||||
Registration fees | 72 | 59 | 53 | 57 | 93 | 51 | 49 | |||||||||||||||||||||
Custodian fees | 11 | 11 | 15 | 4 | 145 | 14 | 6 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees | 22 | 27 | 11 | 10 | 28 | 8 | 4 | |||||||||||||||||||||
Accounting services fee | 112 | 126 | 45 | 67 | 144 | 42 | 36 | |||||||||||||||||||||
Professional fees | 35 | 19 | 24 | 15 | 29 | 23 | 31 | |||||||||||||||||||||
Other | 44 | 62 | 9 | 43 | 65 | 15 | 35 | |||||||||||||||||||||
Total Expenses | 3,613 | 5,422 | 1,633 | 2,252 | 8,604 | 1,454 | 984 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Expenses in excess of limit | (555 | ) | (310 | ) | (164 | ) | (11 | ) | (490 | ) | — | (205 | ) | |||||||||||||||
Total Net Expenses | 3,058 | 5,112 | 1,469 | 2,241 | 8,114 | 1,454 | 779 | |||||||||||||||||||||
Net Investment Income | 12,513 | 1,959 | 914 | 3,021 | 6,552 | 2,215 | 2,582 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 6,470 | 55,785 | 10,683 | 14,972 | 2,472 | 8,916 | (2,426 | ) | ||||||||||||||||||||
Futures contracts | (143 | ) | — | — | — | 56 | — | — | ||||||||||||||||||||
Swap agreements | — | — | — | — | 232 | — | — | |||||||||||||||||||||
Forward foreign currency contracts | — | — | (676 | ) | — | — | (693 | ) | (168 | ) | ||||||||||||||||||
Foreign currency exchange transactions | — | — | * | 14 | 4 | (310 | ) | 494 | 15 | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 4,392 | 18,665 | (309 | ) | 5,623 | 213,928 | 18,427 | 4,017 | ||||||||||||||||||||
Futures contracts | 31 | — | — | — | — | — | — | |||||||||||||||||||||
Forward foreign currency contracts | — | — | 377 | — | — | (588 | ) | 29 | ||||||||||||||||||||
Foreign currency exchange transactions | — | — | 49 | — | (69 | ) | 22 | (2 | ) | |||||||||||||||||||
Net Realized and Unrealized Gain | 10,750 | 74,450 | 10,138 | 20,599 | 216,309 | 26,578 | 1,465 | |||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 23,263 | $ | 76,409 | $ | 11,052 | $ | 23,620 | $ | 222,861 | $ | 28,793 | $ | 4,047 |
* | 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 | 2017 |
Table of Contents
STATEMENTS OF OPERATIONS | IVY FUNDS |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands) | Ivy Global Equity Income Fund | Ivy Global Growth Fund | Ivy Global Income Allocation Fund | Ivy Government Money Market Fund | Ivy High Income Fund | Ivy International Core Equity Fund | Ivy Large Cap Growth Fund | |||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends from unaffiliated securities | $ | 7,929 | $ | 4,531 | $ | 14,331 | $ | — | $ | 1,088 | $ | 100,615 | $ | 9,527 | ||||||||||||||
Dividends from affiliated securities | — | — | — | — | 1,810 | — | — | |||||||||||||||||||||
Foreign dividend withholding tax | (399 | ) | (345 | ) | (877 | ) | — | — | (9,635 | ) | — | |||||||||||||||||
Interest and amortization from unaffiliated securities | 25 | 73 | 9,550 | 860 | 179,118 | 810 | 81 | |||||||||||||||||||||
Interest and amortization from affiliated securities | — | — | — | — | 565 | — | — | |||||||||||||||||||||
Foreign interest withholding tax | — | — | — | — | — | (1 | ) | — | ||||||||||||||||||||
Total Investment Income | 7,555 | 4,259 | 23,004 | 860 | 182,581 | 91,789 | 9,608 | |||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Investment management fee | 1,152 | 1,861 | 2,501 | 299 | 11,952 | 22,848 | 5,994 | |||||||||||||||||||||
Distribution and service fees: | ||||||||||||||||||||||||||||
Class A | 84 | 127 | 262 | — | 1,564 | 774 | 639 | |||||||||||||||||||||
Class B | 9 | 9 | 18 | 23 | 375 | 44 | 48 | |||||||||||||||||||||
Class C | 61 | 123 | 227 | 118 | 4,697 | 1,171 | 485 | |||||||||||||||||||||
Class E | N/A | — | * | 4 | — | 12 | 8 | 18 | ||||||||||||||||||||
Class R | 1 | 5 | 1 | N/A | 173 | 222 | 52 | |||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | — | * | — | * | N/A | |||||||||||||||||||
Class Y | 6 | 15 | 4 | N/A | 473 | 596 | 44 | |||||||||||||||||||||
Shareholder servicing: | ||||||||||||||||||||||||||||
Class A | 83 | 153 | 240 | 120 | 874 | 692 | 490 | |||||||||||||||||||||
Class B | 1 | 4 | 7 | 3 | 59 | 15 | 14 | |||||||||||||||||||||
Class C | 8 | 26 | 27 | 16 | 505 | 168 | 71 | |||||||||||||||||||||
Class E | N/A | — | * | 7 | 7 | 21 | 16 | 24 | ||||||||||||||||||||
Class I | 210 | 220 | 357 | N/A | 1,403 | 2,807 | 816 | |||||||||||||||||||||
Class N | — | * | 1 | 1 | — | * | 3 | 55 | 5 | |||||||||||||||||||
Class R | 1 | 3 | 1 | N/A | 86 | 112 | 26 | |||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | — | * | — | * | N/A | |||||||||||||||||||
Class Y | 3 | 10 | 3 | N/A | 309 | 371 | 28 | |||||||||||||||||||||
Registration fees | 51 | 56 | 63 | 65 | 119 | 111 | 72 | |||||||||||||||||||||
Custodian fees | 13 | 11 | 11 | 8 | 7 | 242 | 15 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees | 8 | 13 | 19 | 6 | 114 | 125 | 45 | |||||||||||||||||||||
Accounting services fee | 53 | 70 | 93 | 35 | 139 | 139 | 138 | |||||||||||||||||||||
Professional fees | 20 | 22 | 28 | 27 | 92 | 56 | 24 | |||||||||||||||||||||
Other | 47 | 42 | 41 | 85 | 197 | 190 | 102 | |||||||||||||||||||||
Total Expenses | 1,811 | 2,771 | 3,915 | 812 | 23,174 | 30,762 | 9,150 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Expenses in excess of limit | — | * | — | (2 | ) | (104 | ) | (41 | ) | (8 | ) | (80 | ) | |||||||||||||||
Total Net Expenses | 1,811 | 2,771 | 3,913 | 708 | 23,133 | 30,754 | 9,070 | |||||||||||||||||||||
Net Investment Income | 5,744 | 1,488 | 19,091 | 152 | 159,448 | 61,035 | 538 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 10,234 | 29,110 | (9,101 | ) | 1 | 34,122 | 43,344 | 31,931 | ||||||||||||||||||||
Forward foreign currency contracts | (2,378 | ) | — | (3,450 | ) | — | (2,652 | ) | 7,696 | — | ||||||||||||||||||
Foreign currency exchange transactions | (21 | ) | 9 | 89 | — | 9 | 1,562 | — | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 18,654 | 11,688 | 26,716 | — | (17,254 | ) | 392,064 | 165,040 | ||||||||||||||||||||
Investments in affiliated securities | — | — | — | — | (1,681 | ) | — | — | ||||||||||||||||||||
Forward foreign currency contracts | (219 | ) | — | (563 | ) | — | (233 | ) | 692 | — | ||||||||||||||||||
Foreign currency exchange transactions | 19 | 16 | 34 | — | 5 | 1,114 | — | |||||||||||||||||||||
Net Realized and Unrealized Gain | 26,289 | 40,823 | 13,725 | 1 | 12,316 | 446,472 | 196,971 | |||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 32,033 | $ | 42,311 | $ | 32,816 | $ | 153 | $ | 171,764 | $ | 507,507 | $ | 197,509 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 127 |
Table of Contents
STATEMENTS OF OPERATIONS | IVY FUNDS |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands) | 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 Municipal Bond Fund | Ivy Municipal High Income Fund | |||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends from unaffiliated securities | $ | — | $ | — | $ | 333 | $ | 9,759 | $ | 5,053 | $ | — | $ | — | ||||||||||||||
Dividends from affiliated securities | — | 710 | — | — | — | — | — | |||||||||||||||||||||
Interest and amortization from unaffiliated securities | 19,591 | 4 | 53 | 171 | 33 | 3,474 | 22,286 | |||||||||||||||||||||
Interest and amortization from affiliated securities | — | — | — | — | — | — | 162 | |||||||||||||||||||||
Total Investment Income | 19,591 | 714 | 386 | 9,930 | 5,086 | 3,474 | 22,448 | |||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Investment management fee | 3,435 | 49 | 792 | 9,488 | 1,435 | 481 | 2,632 | |||||||||||||||||||||
Distribution and service fees: | ||||||||||||||||||||||||||||
Class A | 638 | 96 | 102 | 540 | 137 | 82 | 274 | |||||||||||||||||||||
Class B | 42 | 5 | 7 | 86 | N/A | 10 | 53 | |||||||||||||||||||||
Class C | 396 | 23 | 36 | 1,056 | 71 | 111 | 859 | |||||||||||||||||||||
Class E | 6 | — | * | N/A | 11 | 3 | N/A | N/A | ||||||||||||||||||||
Class R | 2 | 2 | 2 | 131 | 6 | N/A | N/A | |||||||||||||||||||||
Class Y | 19 | 1 | 1 | 381 | 10 | 1 | 19 | |||||||||||||||||||||
Shareholder servicing: | ||||||||||||||||||||||||||||
Class A | 371 | 32 | 122 | 438 | 122 | 32 | 73 | |||||||||||||||||||||
Class B | 13 | 1 | 3 | 18 | N/A | 1 | 5 | |||||||||||||||||||||
Class C | 65 | 3 | 11 | 166 | 17 | 12 | 56 | |||||||||||||||||||||
Class E | 7 | — | * | N/A | 22 | — | * | N/A | N/A | |||||||||||||||||||
Class I | 677 | 13 | 65 | 901 | 146 | 76 | 451 | |||||||||||||||||||||
Class N | 4 | — | * | — | * | 7 | 2 | — | * | — | * | |||||||||||||||||
Class R | 1 | — | * | 1 | 69 | 3 | N/A | N/A | ||||||||||||||||||||
Class Y | 12 | — | * | 1 | 237 | 7 | — | * | 13 | |||||||||||||||||||
Registration fees | 74 | 47 | 48 | 69 | 56 | 35 | 48 | |||||||||||||||||||||
Custodian fees | 5 | 4 | 4 | 17 | 5 | 4 | 6 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees | 40 | 5 | 4 | 53 | 8 | 5 | 25 | |||||||||||||||||||||
Accounting services fee | 138 | 23 | 36 | 144 | 57 | 36 | 122 | |||||||||||||||||||||
Professional fees | 25 | 13 | 14 | 26 | 17 | 18 | 31 | |||||||||||||||||||||
Other | 66 | 14 | 12 | 97 | 20 | 33 | 55 | |||||||||||||||||||||
Total Expenses | 6,036 | 331 | 1,261 | 13,957 | 2,122 | 937 | 4,722 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Expenses in excess of limit | (2 | ) | (12 | ) | — | (47 | ) | (102 | ) | — | * | (279 | ) | |||||||||||||||
Total Net Expenses | 6,034 | 319 | 1,261 | 13,910 | 2,020 | 937 | 4,443 | |||||||||||||||||||||
Net Investment Income (Loss) | 13,557 | 395 | (875 | ) | (3,980 | ) | 3,066 | 2,537 | 18,005 | |||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 743 | — | (311 | ) | 53,606 | (1,394 | ) | (266 | ) | (45,776 | ) | |||||||||||||||||
Investments in affiliated securities | — | 6,650 | — | — | — | — | — | |||||||||||||||||||||
Futures contracts | — | — | — | — | — | (237 | ) | (1,395 | ) | |||||||||||||||||||
Written options | — | — | — | (150 | ) | — | — | — | ||||||||||||||||||||
Foreign currency exchange transactions | — | — | — | 6 | — | — | — | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 6,036 | — | 9,961 | 190,191 | 8,504 | 2,263 | 48,152 | |||||||||||||||||||||
Investments in affiliated securities | — | 13,232 | — | — | — | — | (214 | ) | ||||||||||||||||||||
Futures contracts | — | — | — | — | — | 104 | 457 | |||||||||||||||||||||
Written options | — | — | — | (164 | ) | — | — | — | ||||||||||||||||||||
Net Realized and Unrealized Gain | 6,779 | 19,882 | 9,650 | 243,489 | 7,110 | 1,864 | 1,224 | |||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 20,336 | $ | 20,277 | $ | 8,775 | $ | 239,509 | $ | 10,176 | $ | 4,401 | $ | 19,229 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
128 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF OPERATIONS | IVY FUNDS |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)
(In thousands) | Ivy Small Cap Core Fund | Ivy Small Cap Growth Fund | Ivy Tax- Managed | Ivy Value Fund | ||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividends from unaffiliated securities | $ | 4,443 | $ | 1,971 | $ | 711 | $ | 8,316 | ||||||||
Foreign dividend withholding tax | — | — | (2 | ) | (50 | ) | ||||||||||
Interest and amortization from unaffiliated securities | 101 | 329 | 11 | 76 | ||||||||||||
Total Investment Income | 4,544 | 2,300 | 720 | 8,342 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment management fee | 2,379 | 4,484 | 401 | 1,411 | ||||||||||||
Distribution and service fees: | ||||||||||||||||
Class A | 244 | 307 | 50 | 124 | ||||||||||||
Class B | 19 | 39 | 7 | 13 | ||||||||||||
Class C | 166 | 885 | 30 | 95 | ||||||||||||
Class E | — | * | 10 | N/A | — | * | ||||||||||
Class R | 22 | 123 | N/A | 1 | ||||||||||||
Class T | — | * | — | * | N/A | N/A | ||||||||||
Class Y | 22 | 164 | 1 | 1 | ||||||||||||
Shareholder servicing: | ||||||||||||||||
Class A | 272 | 270 | 23 | 123 | ||||||||||||
Class B | 9 | 12 | 1 | 5 | ||||||||||||
Class C | 37 | 127 | 4 | 15 | ||||||||||||
Class E | — | * | 20 | N/A | — | * | ||||||||||
Class I | 225 | 284 | 62 | 155 | ||||||||||||
Class N | 2 | 5 | — | * | 5 | |||||||||||
Class R | 11 | 63 | N/A | — | * | |||||||||||
Class T | — | * | — | * | N/A | N/A | ||||||||||
Class Y | 16 | 105 | — | * | — | * | ||||||||||
Registration fees | 99 | 66 | 35 | 60 | ||||||||||||
Custodian fees | 10 | 11 | 4 | 7 | ||||||||||||
Independent Trustees and Chief Compliance Officer fees | 14 | 31 | 3 | 10 | ||||||||||||
Accounting services fee | 83 | 137 | 33 | 67 | ||||||||||||
Professional fees | 25 | 24 | 13 | 20 | ||||||||||||
Other | 28 | 64 | 32 | 48 | ||||||||||||
Total Expenses | 3,683 | 7,231 | 699 | 2,160 | ||||||||||||
Less: | ||||||||||||||||
Expenses in excess of limit | — | (10 | ) | — | * | — | ||||||||||
Total Net Expenses | 3,683 | 7,221 | 699 | 2,160 | ||||||||||||
Net Investment Income (Loss) | 861 | (4,921 | ) | 21 | 6,182 | |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments in unaffiliated securities | (4,715 | ) | 41,582 | 4,733 | 3,245 | |||||||||||
Futures contracts | — | — | — | 746 | ||||||||||||
Written options | — | (240 | ) | — | 68 | |||||||||||
Swap agreements | — | 5,000 | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments in unaffiliated securities | 37,698 | 54,538 | 6,940 | 6,308 | ||||||||||||
Written options | — | — | — | 51 | ||||||||||||
Swap agreements | — | 1,220 | — | 142 | ||||||||||||
Net Realized and Unrealized Gain | 32,983 | 102,100 | 11,673 | 10,560 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 33,844 | $ | 97,179 | $ | 11,694 | $ | 16,742 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 129 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | IVY FUNDS |
Ivy Advantus Bond Fund | Ivy Core Equity Fund | Ivy Cundill Global Value Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 12,513 | $ | 18,661 | $ | 1,959 | $ | 2,807 | $ | 914 | $ | 1,813 | ||||||||||||
Net realized gain (loss) on investments | 6,327 | 6,042 | 55,785 | 46,898 | 10,021 | (10,373 | ) | |||||||||||||||||
Net change in unrealized appreciation | 4,423 | 1,256 | 18,665 | 54,219 | 117 | 46,231 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 23,263 | 25,959 | 76,409 | 103,924 | 11,052 | 37,671 | ||||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (2,772 | ) | (8,474 | ) | — | (1,033 | ) | — | (342 | ) | ||||||||||||||
Class B | (40 | ) | (93 | ) | — | — | — | — | ||||||||||||||||
Class C | (238 | ) | (584 | ) | — | — | — | — | ||||||||||||||||
Class E | (58 | ) | (112 | ) | — | (35 | ) | N/A | (5 | ) | ||||||||||||||
Class I | (7,660 | ) | (10,589 | ) | — | (2,357 | ) | — | (734 | ) | ||||||||||||||
Class N | (2,050 | ) | (53 | ) | — | (771 | ) | — | (10 | ) | ||||||||||||||
Class R | (121 | ) | (103 | ) | — | (2 | ) | — | (1 | ) | ||||||||||||||
Class Y | (67 | ) | (123 | ) | — | (424 | ) | — | (13 | ) | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | (9,463 | ) | — | — | |||||||||||||||||
Class B | — | — | — | (309 | ) | — | — | |||||||||||||||||
Class C | — | — | — | (4,447 | ) | — | — | |||||||||||||||||
Class E | — | — | — | (370 | ) | N/A | — | |||||||||||||||||
Class I | — | — | — | (11,431 | ) | — | — | |||||||||||||||||
Class N | — | — | — | (3,244 | ) | — | — | |||||||||||||||||
Class R | — | — | — | (87 | ) | — | — | |||||||||||||||||
Class Y | — | — | — | (2,058 | ) | — | — | |||||||||||||||||
Total Distributions to Shareholders | (13,006 | ) | (20,131 | ) | — | (36,031 | ) | — | (1,105 | ) | ||||||||||||||
Capital Share Transactions | 225,924 | (61,966 | ) | (150,824 | ) | (229,497 | ) | (23,307 | ) | (39,778 | ) | |||||||||||||
Net Increase (Decrease) in Net Assets | 236,181 | (56,138 | ) | (74,415 | ) | (161,604 | ) | (12,255 | ) | (3,212 | ) | |||||||||||||
Net Assets, Beginning of Period | 713,602 | 769,740 | 968,278 | 1,129,882 | 212,712 | 215,924 | ||||||||||||||||||
Net Assets, End of Period | $ | 949,783 | $ | 713,602 | $ | 893,863 | $ | 968,278 | $ | 200,457 | $ | 212,712 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | (496 | ) | $ | (3 | ) | $ | 2,132 | $ | 173 | $ | 1,788 | $ | 860 |
See Accompanying Notes to Financial Statements.
130 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | IVY FUNDS |
Ivy Dividend Opportunities Fund | Ivy Emerging Markets Equity Fund(1) | Ivy European Opportunities Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 3,021 | $ | 4,416 | $ | 6,552 | $ | (279 | ) | $ | 2,215 | $ | 3,390 | |||||||||||
Net realized gain (loss) on investments | 14,976 | 19,718 | 2,450 | 645 | 8,717 | (3,769 | ) | |||||||||||||||||
Net change in unrealized appreciation | 5,623 | 20,103 | 213,859 | 138,186 | 17,861 | 18,580 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 23,620 | 44,237 | 222,861 | 138,552 | 28,793 | 18,201 | ||||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (732 | ) | (2,546 | ) | — | — | — | (1,037 | ) | |||||||||||||||
Class B | (12 | ) | (36 | ) | — | — | — | (5 | ) | |||||||||||||||
Class C | (79 | ) | (242 | ) | — | — | — | (83 | ) | |||||||||||||||
Class E | (38 | ) | (78 | ) | — | — | — | (1 | ) | |||||||||||||||
Class I | (1,176 | ) | (2,127 | ) | — | — | — | (1,805 | ) | |||||||||||||||
Class N | (19 | ) | (40 | ) | — | — | — | (22 | ) | |||||||||||||||
Class R | (2 | ) | (5 | ) | — | — | — | (6 | ) | |||||||||||||||
Class T | N/A | N/A | — | N/A | N/A | N/A | ||||||||||||||||||
Class Y | (31 | ) | (90 | ) | — | — | — | (14 | ) | |||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | (5,672 | ) | — | — | — | — | |||||||||||||||||
Class B | — | (316 | ) | — | — | — | — | |||||||||||||||||
Class C | — | (1,663 | ) | — | — | — | — | |||||||||||||||||
Class E | — | (214 | ) | — | — | — | — | |||||||||||||||||
Class I | — | (6,582 | ) | — | — | — | — | |||||||||||||||||
Class N | — | (84 | ) | — | — | — | — | |||||||||||||||||
Class R | — | (23 | ) | — | — | — | — | |||||||||||||||||
Class T | N/A | N/A | — | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | (225 | ) | — | — | — | — | |||||||||||||||||
Total Distributions to Shareholders | (2,089 | ) | (19,943 | ) | — | — | — | (2,973 | ) | |||||||||||||||
Capital Share Transactions | (39,706 | ) | (3,968 | ) | 792,285 | 176,070 | 57,165 | (59,803 | ) | |||||||||||||||
Net Increase (Decrease) in Net Assets | (18,175 | ) | 20,326 | 1,015,146 | 314,622 | 85,958 | (44,575 | ) | ||||||||||||||||
Net Assets, Beginning of Period | 382,410 | 362,084 | 848,524 | 533,902 | 179,334 | 223,909 | ||||||||||||||||||
Net Assets, End of Period | $ | 364,235 | $ | 382,410 | $ | 1,863,670 | $ | 848,524 | $ | 265,292 | $ | 179,334 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 1,819 | $ | 883 | $ | 6,042 | $ | (200 | ) | $ | 3,172 | $ | 463 |
(1) | Consolidated Statements of Changes in Net Assets (See Note 6 in Notes to Financial Statements) |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 131 |
Table of Contents
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 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 2,582 | $ | 5,866 | $ | 5,744 | $ | 12,092 | $ | 1,488 | $ | 199 | ||||||||||||
Net realized gain (loss) on investments | (2,579 | ) | (4,610 | ) | 7,835 | (7,414 | ) | 29,119 | 6,130 | |||||||||||||||
Net change in unrealized appreciation | 4,044 | 11,613 | 18,454 | 23,362 | 11,704 | 31,408 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 4,047 | 12,869 | 32,033 | 28,040 | 42,311 | 37,737 | ||||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (434 | ) | (1,547 | ) | (1,147 | ) | (5,179 | ) | — | — | ||||||||||||||
Class B | (12 | ) | (38 | ) | (26 | ) | (56 | ) | — | — | ||||||||||||||
Class C | (80 | ) | (241 | ) | (170 | ) | (369 | ) | — | — | ||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | ||||||||||||||||||
Class I | (977 | ) | (1,623 | ) | (4,444 | ) | (6,575 | ) | — | — | ||||||||||||||
Class N | (18 | ) | (58 | ) | (24 | ) | (46 | ) | — | — | ||||||||||||||
Class R | (5 | ) | (9 | ) | (5 | ) | (13 | ) | — | — | ||||||||||||||
Class Y | (27 | ) | (56 | ) | (80 | ) | (154 | ) | — | — | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||||||
Class B | — | — | — | — | — | — | ||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | ||||||||||||||||||
Class I | — | — | — | — | — | — | ||||||||||||||||||
Class N | — | — | — | — | — | — | ||||||||||||||||||
Class R | — | — | — | — | — | — | ||||||||||||||||||
Class Y | — | — | — | — | — | — | ||||||||||||||||||
Total Distributions to Shareholders | (1,553 | ) | (3,572 | ) | (5,896 | ) | (12,392 | ) | — | — | ||||||||||||||
Capital Share Transactions | 26,175 | (30,213 | ) | (59,510 | ) | 34,471 | (37,012 | ) | (106,380 | ) | ||||||||||||||
Net Increase (Decrease) in Net Assets | 28,669 | (20,916 | ) | (33,373 | ) | 50,119 | 5,299 | (68,643 | ) | |||||||||||||||
Net Assets, Beginning of Period | 160,989 | 181,905 | 339,052 | 288,933 | 434,667 | 503,310 | ||||||||||||||||||
Net Assets, End of Period | $ | 189,658 | $ | 160,989 | $ | 305,679 | $ | 339,052 | $ | 439,966 | $ | 434,667 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 92 | $ | 225 | $ | 492 | $ | 665 | $ | 1,421 | $ | (76 | ) |
See Accompanying Notes to Financial Statements.
132 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | IVY FUNDS |
Ivy Global Income Allocation Fund | Ivy Government Money Market Fund | Ivy High Income Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 19,091 | $ | 30,162 | $ | 152 | $ | 61 | $ | 159,448 | $ | 347,837 | ||||||||||||
Net realized gain (loss) on investments | (12,462 | ) | 17,930 | 1 | 11 | 31,479 | (113,543 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 26,187 | 29,994 | — | — | (19,163 | ) | 558,524 | |||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 32,816 | 78,086 | 153 | 72 | 171,764 | 792,818 | ||||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (4,605 | ) | (13,715 | ) | (144 | ) | (53 | ) | (44,717 | ) | (112,145 | ) | ||||||||||||
Class B | (65 | ) | (125 | ) | — | * | (1 | ) | (2,394 | ) | (5,470 | ) | ||||||||||||
Class C | (865 | ) | (1,682 | ) | (1 | ) | (6 | ) | (30,217 | ) | (67,444 | ) | ||||||||||||
Class E | (71 | ) | (109 | ) | (6 | ) | (1 | ) | (333 | ) | (640 | ) | ||||||||||||
Class I | (9,823 | ) | (13,109 | ) | N/A | N/A | (64,178 | ) | (119,459 | ) | ||||||||||||||
Class N | (766 | ) | (75 | ) | (1 | ) | N/A | (1,730 | ) | (3,260 | ) | |||||||||||||
Class R | (6 | ) | (12 | ) | N/A | N/A | (2,350 | ) | (4,752 | ) | ||||||||||||||
Class T | N/A | N/A | N/A | N/A | (4 | ) | N/A | |||||||||||||||||
Class Y | (73 | ) | (67 | ) | N/A | N/A | (13,534 | ) | (30,276 | ) | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | (1 | ) | — | — | |||||||||||||||||
Class B | — | — | — | — | * | — | — | |||||||||||||||||
Class C | — | — | — | — | * | — | — | |||||||||||||||||
Class E | — | — | — | — | * | — | — | |||||||||||||||||
Class I | — | — | N/A | N/A | — | — | ||||||||||||||||||
Class N | — | — | — | N/A | — | — | ||||||||||||||||||
Class R | — | — | N/A | N/A | — | — | ||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | — | N/A | ||||||||||||||||||
Class Y | — | — | N/A | N/A | — | — | ||||||||||||||||||
Total Distributions to Shareholders | (16,274 | ) | (28,894 | ) | (152 | ) | (62 | ) | (159,457 | ) | (343,446 | ) | ||||||||||||
Capital Share Transactions | (48,912 | ) | (71,413 | ) | (56,552 | ) | 444 | (153,006 | ) | (674,416 | ) | |||||||||||||
Net Increase (Decrease) in Net Assets | (32,370 | ) | (22,221 | ) | (56,551 | ) | 454 | (140,699 | ) | (225,044 | ) | |||||||||||||
Net Assets, Beginning of Period | 725,603 | 747,824 | 224,036 | 223,582 | 4,546,176 | 4,771,220 | ||||||||||||||||||
Net Assets, End of Period | $ | 693,233 | $ | 725,603 | $ | 167,485 | $ | 224,036 | $ | 4,405,477 | $ | 4,546,176 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 2,547 | $ | 1,294 | $ | — | $ | — | $ | — | $ | — |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 133 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | IVY FUNDS |
Ivy International Core Equity Fund | Ivy Large Cap Growth Fund | Ivy Limited-Term Bond Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 61,035 | $ | 70,815 | $ | 538 | $ | 1,028 | $ | 13,557 | $ | 29,202 | ||||||||||||
Net realized gain on investments | 52,602 | 13,698 | 31,931 | 158,021 | 743 | 6,515 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 393,870 | 539,052 | 165,040 | 58,433 | 6,036 | (17,975 | ) | |||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 507,507 | 623,565 | 197,509 | 217,482 | 20,336 | 17,742 | ||||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | — | (11,323 | ) | — | — | (4,394 | ) | (14,202 | ) | |||||||||||||||
Class B | — | (76 | ) | — | — | (33 | ) | (94 | ) | |||||||||||||||
Class C | — | (2,437 | ) | — | — | (377 | ) | (973 | ) | |||||||||||||||
Class E | — | (79 | ) | — | — | (41 | ) | (77 | ) | |||||||||||||||
Class I | — | (49,133 | ) | — | — | (8,154 | ) | (13,269 | ) | |||||||||||||||
Class N | — | (7,792 | ) | — | — | (874 | ) | (1,399 | ) | |||||||||||||||
Class R | — | (605 | ) | — | — | (5 | ) | (10 | ) | |||||||||||||||
Class T | — | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | (6,237 | ) | — | — | (129 | ) | (304 | ) | |||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | (23,471 | ) | — | — | |||||||||||||||||
Class B | — | — | — | (626 | ) | — | — | |||||||||||||||||
Class C | — | — | — | (5,786 | ) | — | — | |||||||||||||||||
Class E | — | — | — | (573 | ) | — | — | |||||||||||||||||
Class I | — | — | — | (42,961 | ) | — | — | |||||||||||||||||
Class N | — | — | — | (15 | ) | — | — | |||||||||||||||||
Class R | — | — | — | (1,043 | ) | — | — | |||||||||||||||||
Class T | — | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | — | — | (1,784 | ) | — | — | |||||||||||||||||
Total Distributions to Shareholders | — | (77,682 | ) | — | (76,259 | ) | (14,007 | ) | (30,328 | ) | ||||||||||||||
Capital Share Transactions | 1,348,985 | (205,051 | ) | 43,659 | (269,172 | ) | (171,275 | ) | (183,790 | ) | ||||||||||||||
Net Increase (Decrease) in Net Assets | 1,856,492 | 340,832 | 241,168 | (127,949 | ) | (164,946 | ) | (196,376 | ) | |||||||||||||||
Net Assets, Beginning of Period | 4,922,590 | 4,581,758 | 1,624,755 | 1,752,704 | 1,614,123 | 1,810,499 | ||||||||||||||||||
Net Assets, End of Period | $ | 6,779,082 | $ | 4,922,590 | $ | 1,865,923 | $ | 1,624,755 | $ | 1,449,177 | $ | 1,614,123 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 69,401 | $ | 6,804 | $ | 1,454 | $ | 916 | $ | (450 | ) | $ | — |
See Accompanying Notes to Financial Statements.
134 | SEMIANNUAL REPORT | 2017 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | IVY FUNDS |
Ivy Managed International Opportunities Fund | Ivy Micro Cap Growth Fund | Ivy Mid Cap Growth Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 395 | $ | 2,216 | $ | (875 | ) | $ | (2,085 | ) | $ | (3,980 | ) | $ | (9,176 | ) | ||||||||
Net realized gain (loss) on investments | 6,650 | 25,656 | (311 | ) | 11,438 | 53,462 | 200,094 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 13,232 | (4,459 | ) | 9,961 | 35,813 | 190,027 | 154,806 | |||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 20,277 | 23,413 | 8,775 | 45,166 | 239,509 | 345,724 | ||||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | — | (740 | ) | — | — | — | — | |||||||||||||||||
Class B | — | (5 | ) | — | — | — | — | |||||||||||||||||
Class C | — | (21 | ) | — | — | — | — | |||||||||||||||||
Class E | — | (5 | ) | N/A | N/A | — | — | |||||||||||||||||
Class I | — | (1,368 | ) | — | — | — | — | |||||||||||||||||
Class N | — | N/A | — | — | — | — | ||||||||||||||||||
Class R | — | (6 | ) | — | — | — | — | |||||||||||||||||
Class Y | — | (7 | ) | — | — | — | — | |||||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | (1,153 | ) | — | (18,447 | ) | ||||||||||||||||
Class B | — | — | — | (22 | ) | — | (775 | ) | ||||||||||||||||
Class C | — | — | — | (104 | ) | — | (9,699 | ) | ||||||||||||||||
Class E | — | — | N/A | N/A | — | (297 | ) | |||||||||||||||||
Class I | — | — | — | (908 | ) | — | (46,076 | ) | ||||||||||||||||
Class N | — | N/A | — | (25 | ) | — | (2,118 | ) | ||||||||||||||||
Class R | — | — | — | (9 | ) | — | (2,185 | ) | ||||||||||||||||
Class Y | — | — | — | (14 | ) | — | (12,916 | ) | ||||||||||||||||
Total Distributions to Shareholders | — | (2,152 | ) | — | (2,235 | ) | — | (92,513 | ) | |||||||||||||||
Capital Share Transactions | (2,521 | ) | (30,233 | ) | (10,555 | ) | (28,217 | ) | (117,943 | ) | (1,152,162 | ) | ||||||||||||
Net Increase (Decrease) in Net Assets | 17,756 | (8,972 | ) | (1,780 | ) | 14,714 | 121,566 | (898,951 | ) | |||||||||||||||
Net Assets, Beginning of Period | 188,757 | 197,729 | 166,285 | 151,571 | 2,220,335 | 3,119,286 | ||||||||||||||||||
Net Assets, End of Period | $ | 206,513 | $ | 188,757 | $ | 164,505 | $ | 166,285 | $ | 2,341,901 | $ | 2,220,335 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 312 | $ | (83 | ) | $ | (1,412 | ) | $ | (537 | ) | $ | (16,066 | ) | $ | (12,092 | ) |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 135 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | IVY FUNDS |
Ivy Mid Cap Income Opportunities Fund | Ivy Municipal Bond Fund | Ivy Municipal High Income Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 3,066 | $ | 2,959 | $ | 2,537 | $ | 5,174 | $ | 18,005 | $ | 54,188 | ||||||||||||
Net realized gain (loss) on investments | (1,394 | ) | (3,376 | ) | (503 | ) | 571 | (47,171 | ) | 15,663 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | 8,504 | 33,212 | 2,367 | (6,650 | ) | 48,395 | (60,509 | ) | ||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 10,176 | 32,795 | 4,401 | (905 | ) | 19,229 | 9,342 | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (365 | ) | (935 | ) | (900 | ) | (2,484 | ) | (4,131 | ) | (13,623 | ) | ||||||||||||
Class B | N/A | N/A | (20 | ) | (37 | ) | (160 | ) | (456 | ) | ||||||||||||||
Class C | — | (59 | ) | (220 | ) | (455 | ) | (2,628 | ) | (7,885 | ) | |||||||||||||
Class E | (12 | ) | (25 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||
Class I | (841 | ) | (1,305 | ) | (1,358 | ) | (2,150 | ) | (11,310 | ) | (31,683 | ) | ||||||||||||
Class N | (229 | ) | (46 | ) | (2 | ) | N/A | (2 | ) | N/A | ||||||||||||||
Class R | (4 | ) | (16 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||
Class Y | (25 | ) | (66 | ) | (8 | ) | (19 | ) | (282 | ) | (747 | ) | ||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||||||
Class B | N/A | N/A | — | — | — | — | ||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||
Class E | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I | — | — | — | — | — | — | ||||||||||||||||||
Class N | — | — | — | N/A | — | N/A | ||||||||||||||||||
Class R | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | — | — | — | — | — | ||||||||||||||||||
Total Distributions to Shareholders | (1,476 | ) | (2,452 | ) | (2,508 | ) | (5,145 | ) | (18,513 | ) | (54,394 | ) | ||||||||||||
Capital Share Transactions | 2,460 | 176,566 | (16,277 | ) | (28,843 | ) | (141,352 | ) | (256,644 | ) | ||||||||||||||
Net Increase (Decrease) in Net Assets | 11,160 | 206,909 | (14,384 | ) | (34,893 | ) | (140,636 | ) | (301,696 | ) | ||||||||||||||
Net Assets, Beginning of Period | 326,991 | 120,082 | 191,882 | 226,775 | 1,059,897 | 1,361,593 | ||||||||||||||||||
Net Assets, End of Period | $ | 338,151 | $ | 326,991 | $ | 177,498 | $ | 191,882 | $ | 919,261 | $ | 1,059,897 | ||||||||||||
Undistributed net investment income | $ | 2,543 | $ | 953 | $ | 204 | $ | 175 | $ | 2,636 | $ | 3,144 |
See Accompanying Notes to Financial Statements.
136 | SEMIANNUAL REPORT | 2017 |
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STATEMENTS OF CHANGES IN NET ASSETS | IVY FUNDS |
Ivy Small Cap Core Fund | Ivy Small Cap Growth Fund | Ivy Tax-Managed Equity Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 861 | $ | (760 | ) | $ | (4,921 | ) | $ | (7,898 | ) | $ | 21 | $ | (292 | ) | ||||||||
Net realized gain (loss) on investments | (4,715 | ) | 33,991 | 46,342 | 156,935 | 4,733 | (1,761 | ) | ||||||||||||||||
Net change in unrealized appreciation | 37,698 | 50,310 | 55,758 | 51,691 | 6,940 | 15,874 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 33,844 | 83,541 | 97,179 | 200,728 | 11,694 | 13,821 | ||||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||||||
Class B | — | — | — | — | — | — | ||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||
Class E | — | — | — | — | N/A | N/A | ||||||||||||||||||
Class I | — | — | — | — | — | — | ||||||||||||||||||
Class N | — | — | — | — | — | N/A | ||||||||||||||||||
Class R | — | — | — | — | N/A | N/A | ||||||||||||||||||
Class T | — | N/A | — | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | — | — | — | — | — | ||||||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | (8,535 | ) | — | (14,096 | ) | — | — | ||||||||||||||||
Class B | — | (210 | ) | — | (616 | ) | — | — | ||||||||||||||||
Class C | — | (1,143 | ) | — | (11,991 | ) | — | — | ||||||||||||||||
Class E | — | (8 | ) | — | (434 | ) | N/A | N/A | ||||||||||||||||
Class I | — | (7,376 | ) | — | (11,926 | ) | — | — | ||||||||||||||||
Class N | — | (255 | ) | — | (2,876 | ) | — | N/A | ||||||||||||||||
Class R | — | (240 | ) | — | (2,819 | ) | N/A | N/A | ||||||||||||||||
Class T | — | N/A | — | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | (751 | ) | — | (6,494 | ) | — | — | ||||||||||||||||
Total Distributions to Shareholders | — | (18,518 | ) | — | (51,252 | ) | — | — | ||||||||||||||||
Capital Share Transactions | 53,223 | 214,352 | 31,652 | (101,015 | ) | 990 | (15,692 | ) | ||||||||||||||||
Net Increase (Decrease) in Net Assets | 87,067 | 279,375 | 128,831 | 48,461 | 12,684 | (1,871 | ) | |||||||||||||||||
Net Assets, Beginning of Period | 527,635 | 248,260 | 992,770 | 944,309 | 117,701 | 119,572 | ||||||||||||||||||
Net Assets, End of Period | $ | 614,702 | $ | 527,635 | $ | 1,121,601 | $ | 992,770 | $ | 130,385 | $ | 117,701 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 831 | $ | (30 | ) | $ | (6,595 | ) | $ | (1,674 | ) | $ | (52 | ) | $ | (73 | ) |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 137 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS | IVY FUNDS |
Ivy Value Fund | ||||||||
(In thousands) | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | ||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 6,182 | $ | 3,317 | ||||
Net realized gain on investments | 4,059 | 9,394 | ||||||
Net change in unrealized appreciation | 6,501 | 35,331 | ||||||
Net Increase in Net Assets Resulting from Operations | 16,742 | 48,042 | ||||||
Distributions to Shareholders From: | ||||||||
Net investment income: | ||||||||
Class A | (163 | ) | (2,877 | ) | ||||
Class B | — | (22 | ) | |||||
Class C | — | (189 | ) | |||||
Class E | (1 | ) | (3 | ) | ||||
Class I | (751 | ) | (1,498 | ) | ||||
Class N | (688 | ) | (144 | ) | ||||
Class R | — | * | (4 | ) | ||||
Class Y | (1 | ) | (35 | ) | ||||
Net realized gains: | ||||||||
Class A | — | (786 | ) | |||||
Class B | — | (22 | ) | |||||
Class C | — | (133 | ) | |||||
Class E | — | (1 | ) | |||||
Class I | — | (1,073 | ) | |||||
Class N | — | (52 | ) | |||||
Class R | — | (2 | ) | |||||
Class Y | — | (17 | ) | |||||
Total Distributions to Shareholders | (1,604 | ) | (6,858 | ) | ||||
Capital Share Transactions | 121,519 | 1,486 | ||||||
Net Increase in Net Assets | 136,657 | 42,670 | ||||||
Net Assets, Beginning of Period | 322,109 | 279,439 | ||||||
Net Assets, End of Period | $ | 458,766 | $ | 322,109 | ||||
Undistributed net investment income | $ | 4,979 | $ | 401 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
138 | SEMIANNUAL REPORT | 2017 |
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2017 | SEMIANNUAL REPORT | 139 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY ADVANTUS 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 9-30-2017 (unaudited) | $ | 10.62 | $ | 0.14 | $ | 0.16 | $ | 0.30 | $ | (0.15 | ) | $ | — | $ | (0.15 | ) | ||||||||||||
Year ended 3-31-2017 | 10.54 | 0.24 | 0.11 | 0.35 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.62 | 0.09 | 0.15 | 0.24 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.54 | 0.14 | 0.10 | 0.24 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.62 | 0.10 | 0.16 | 0.26 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.54 | 0.17 | 0.10 | 0.27 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.62 | 0.14 | 0.16 | 0.30 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.54 | 0.25 | 0.10 | 0.35 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.62 | 0.17 | 0.15 | 0.32 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.54 | 0.29 | 0.09 | 0.38 | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.62 | 0.17 | 0.15 | 0.32 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.54 | 0.30 | 0.10 | 0.40 | (0.32 | ) | — | (0.32 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 10.78 | 0.29 | (0.23 | ) | 0.06 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||
Year ended 3-31-2015(6) | 10.58 | 0.18 | 0.22 | 0.40 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.62 | 0.13 | 0.15 | 0.28 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.54 | 0.22 | 0.10 | 0.32 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 10.78 | 0.20 | (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(8) | 10.69 | 0.02 | 0.08 | 0.10 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.62 | 0.15 | 0.15 | 0.30 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.54 | 0.26 | 0.10 | 0.36 | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
140 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 10.77 | 2.80 | % | $ | 202 | 1.04 | %(4) | 2.60 | %(4) | 1.08 | %(4) | 2.56 | %(4) | 87 | % | ||||||||||||||||
Year ended 3-31-2017 | 10.62 | 3.30 | 206 | 1.05 | 2.28 | 1.06 | 2.27 | 190 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.77 | 2.30 | 4 | 2.01 | (4) | 1.64 | (4) | 2.04 | (4) | 1.61 | (4) | 87 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.62 | 2.32 | 5 | 2.02 | 1.33 | 2.03 | 1.32 | 190 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.77 | 2.43 | 22 | 1.75 | (4) | 1.89 | (4) | 1.79 | (4) | 1.85 | (4) | 87 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.62 | 2.59 | 26 | 1.76 | 1.60 | 1.77 | 1.59 | 190 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.77 | 2.80 | 4 | 1.04 | (4) | 2.61 | (4) | 1.23 | (4) | 2.42 | (4) | 87 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.62 | 3.31 | 4 | 1.05 | 2.31 | 1.23 | 2.13 | 190 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.77 | 3.06 | 490 | 0.54 | (4) | 3.10 | (4) | 0.74 | (4) | 2.90 | (4) | 87 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.62 | 3.68 | 458 | 0.69 | 2.70 | 0.74 | 2.65 | 190 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.77 | 3.06 | 212 | 0.54 | (4) | 3.12 | (4) | 0.59 | (4) | 3.07 | (4) | 87 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.62 | 3.80 | 2 | 0.58 | 2.77 | 0.59 | 2.76 | 190 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 10.54 | 0.64 | 2 | 0.59 | 2.75 | — | — | 213 | ||||||||||||||||||||||||
Year ended 3-31-2015(6) | 10.78 | 3.81 | 1 | 0.58 | (4) | 2.54 | (4) | — | — | 182 | (7) | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.77 | 2.67 | 11 | 1.29 | (4) | 2.34 | (4) | 1.32 | (4) | 2.31 | (4) | 87 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.62 | 3.04 | 8 | 1.32 | 2.07 | 1.33 | 2.06 | 190 | ||||||||||||||||||||||||
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(7) | 10.71 | 0.96 | — | * | 1.30 | (4) | 0.82 | (4) | — | — | 269 | (9) | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.77 | 2.85 | 5 | 0.95 | (4) | 2.69 | (4) | 0.98 | (4) | 2.66 | (4) | 87 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.62 | 3.39 | 5 | 0.97 | 2.39 | 0.98 | 2.38 | 190 | ||||||||||||||||||||||||
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 |
(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. |
(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. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 141 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY CORE EQUITY FUND
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (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 9-30-2017 (unaudited) | $ | 13.55 | $ | 0.02 | $ | 1.10 | $ | 1.12 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 12.73 | 0.03 | 1.28 | 1.31 | (0.05 | ) | (0.44 | ) | (0.49 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.42 | (0.04 | ) | 0.92 | 0.88 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 10.85 | (0.09 | ) | 1.10 | 1.01 | — | (0.44 | ) | (0.44 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.81 | (0.03 | ) | 0.96 | 0.93 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 11.19 | (0.07 | ) | 1.13 | 1.06 | — | (0.44 | ) | (0.44 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.50 | 0.02 | 1.09 | 1.11 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 12.67 | 0.03 | 1.28 | 1.31 | (0.04 | ) | (0.44 | ) | (0.48 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.01 | 0.05 | 1.22 | 1.27 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.05 | 0.08 | 1.41 | 1.49 | (0.09 | ) | (0.44 | ) | (0.53 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.03 | 0.05 | 1.23 | 1.28 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.07 | 0.08 | 1.43 | 1.51 | (0.11 | ) | (0.44 | ) | (0.55 | ) | ||||||||||||||||||
Year ended 3-31-2016 | 15.69 | 0.09 | (0.67 | ) | (0.58 | ) | (0.02 | ) | (1.02 | ) | (1.04 | ) | ||||||||||||||||
Year ended 3-31-2015)(6) | 15.69 | 0.06 | 1.06 | 1.12 | (0.01 | ) | (1.11 | ) | (1.12 | ) | ||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.47 | 0.00 | * | 1.09 | 1.09 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 12.67 | (0.02 | ) | 1.27 | 1.25 | (0.01 | ) | (0.44 | ) | (0.45 | ) | |||||||||||||||||
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(8) | 11.15 | 0.00 | 0.98 | 0.98 | — | — | — | |||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.61 | 0.05 | 1.18 | 1.23 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 13.69 | 0.07 | 1.38 | 1.45 | (0.09 | ) | (0.44 | ) | (0.53 | ) | ||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
142 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Including Expense | 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 9-30-2017 (unaudited) | $ | 14.67 | 8.27 | % | $ | 267 | 1.15 | %(4) | 0.31 | %(4) | 1.20 | %(4) | 0.26 | %(4) | 45 | % | ||||||||||||||||
Year ended 3-31-2017 | 13.55 | 10.42 | 269 | 1.15 | 0.20 | 1.21 | 0.14 | 90 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.30 | 7.79 | 6 | 2.10 | (4) | -0.62 | (4) | — | — | 45 | ||||||||||||||||||||||
Year ended 3-31-2017 | 11.42 | 9.39 | 8 | 2.13 | -0.79 | — | — | 90 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.74 | 7.87 | 113 | 1.92 | (4) | -0.45 | (4) | — | — | 45 | ||||||||||||||||||||||
Year ended 3-31-2017 | 11.81 | 9.60 | 116 | 1.92 | -0.57 | — | — | 90 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.61 | 8.22 | 13 | 1.13 | (4) | 0.33 | (4) | 1.40 | (4) | 0.06 | (4) | 45 | ||||||||||||||||||||
Year ended 3-31-2017 | 13.50 | 10.49 | 12 | 1.16 | 0.19 | 1.42 | �� | -0.07 | 90 | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.28 | 8.46 | 322 | 0.84 | (4) | 0.64 | (4) | 0.93 | (4) | 0.55 | (4) | 45 | ||||||||||||||||||||
Year ended 3-31-2017 | 15.01 | 10.76 | 384 | 0.84 | 0.52 | 0.91 | 0.45 | 90 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.31 | 8.52 | 114 | 0.77 | (4) | 0.65 | (4) | — | — | 45 | ||||||||||||||||||||||
Year ended 3-31-2017 | 15.03 | 10.84 | 112 | 0.76 | 0.58 | — | — | 90 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 14.07 | -3.84 | 149 | 0.75 | 0.63 | — | — | 62 | ||||||||||||||||||||||||
Year ended 3-31-2015(6) | 15.69 | 7.39 | 4 | 0.75 | (4) | 0.60 | (4) | — | — | 65 | (7) | |||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.56 | 8.09 | 3 | 1.51 | (4) | -0.06 | (4) | — | — | 45 | ||||||||||||||||||||||
Year ended 3-31-2017 | 13.47 | 10.01 | 3 | 1.51 | -0.15 | — | — | 90 | ||||||||||||||||||||||||
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(8) | 12.13 | 8.79 | — | * | 1.50 | (4) | -0.13 | (4) | — | — | 60 | (9) | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.84 | 8.49 | 56 | 0.84 | (4) | 0.62 | (4) | 1.15 | (4) | 0.31 | (4) | 45 | ||||||||||||||||||||
Year ended 3-31-2017 | 14.61 | 10.75 | 64 | 0.84 | 0.49 | 1.15 | 0.18 | 90 | ||||||||||||||||||||||||
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 |
(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. |
(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. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 143 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY CUNDILL GLOBAL VALUE FUND
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 17.15 | $ | 0.06 | $ | 0.91 | $ | 0.97 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 14.33 | 0.14 | 2.74 | 2.88 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
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 | — | — | — | |||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.58 | (0.05 | ) | 0.82 | 0.77 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 13.15 | (0.07 | ) | 2.50 | 2.43 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.12 | 0.01 | 0.85 | 0.86 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 13.50 | 0.03 | 2.59 | 2.62 | — | — | — | |||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.53 | 0.10 | 0.93 | 1.03 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.64 | 0.16 | 2.87 | 3.03 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||
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 | — | — | — | |||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.57 | 0.12 | 0.94 | 1.06 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.68 | 0.22 | 2.83 | 3.05 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 16.95 | 0.24 | (2.25 | ) | (2.01 | ) | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||
Year ended 3-31-2015(6) | 18.57 | 0.08 | (1.70 | ) | (1.62 | ) | — | — | — | |||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.13 | 0.05 | 0.90 | 0.95 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.32 | 0.10 | 2.76 | 2.86 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
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(8) | 13.62 | (0.01 | ) | 1.07 | 1.06 | — | — | — | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.39 | 0.08 | 0.92 | 1.00 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.53 | 0.16 | 2.80 | 2.96 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
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 | — | — | — |
* | 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. |
(4) | Annualized. |
144 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 18.12 | 5.66 | % | $ | 96 | 1.60 | %(4) | 0.73 | %(4) | 1.76 | %(4) | 0.57 | %(4) | 21 | % | ||||||||||||||||
Year ended 3-31-2017 | 17.15 | 20.10 | 98 | 1.65 | 0.91 | 1.81 | 0.75 | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.35 | 5.01 | 1 | 2.97 | (4) | -0.60 | (4) | 3.13 | (4) | -0.76 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 15.58 | 18.48 | 1 | 2.94 | -0.53 | 3.10 | -0.69 | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.98 | 5.40 | 12 | 2.18 | (4) | 0.18 | (4) | 2.34 | (4) | 0.02 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 16.12 | 19.41 | 14 | 2.21 | 0.19 | 2.37 | 0.03 | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.56 | 5.93 | 88 | 1.18 | (4) | 1.18 | (4) | 1.34 | (4) | 1.02 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 17.53 | 20.70 | 96 | 1.17 | 0.96 | 1.33 | 0.80 | 51 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.63 | 6.03 | 1 | 0.99 | (4) | 1.31 | (4) | 1.15 | (4) | 1.15 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 17.57 | 20.81 | 1 | 1.00 | 1.41 | 1.16 | 1.25 | 51 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 14.68 | -11.92 | 1 | 0.98 | 1.48 | 1.13 | 1.33 | 18 | ||||||||||||||||||||||||
Year ended 3-31-2015(6) | 16.95 | -8.72 | 1 | 0.95 | (4) | 0.72 | (4) | 1.09 | (4) | 0.58 | (4) | 28 | (7) | |||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.08 | 5.60 | — | * | 1.73 | (4) | 0.58 | (4) | 1.89 | (4) | 0.42 | (4) | 21 | |||||||||||||||||||
Year ended 3-31-2017 | 17.13 | 19.96 | — | * | 1.75 | 0.64 | 1.91 | 0.48 | 51 | |||||||||||||||||||||||
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(8) | 14.68 | 7.78 | — | * | 1.66 | (4) | -0.37 | (4) | 1.71 | (4) | -0.42 | (4) | 26 | (9) | ||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.39 | 5.75 | 2 | 1.39 | (4) | 0.94 | (4) | 1.55 | (4) | 0.78 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 17.39 | 20.38 | 2 | 1.41 | 1.00 | 1.57 | 0.84 | 51 | ||||||||||||||||||||||||
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 |
(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. |
(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. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 145 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY DIVIDEND OPPORTUNITIES FUND
Net Asset Value, Beginning of Period | Net Investment Income(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 18.13 | $ | 0.15 | $ | 1.06 | $ | 1.21 | $ | (0.10 | ) | $ | — | $ | (0.10 | ) | ||||||||||||
Year ended 3-31-2017 | 16.99 | 0.21 | 1.90 | 2.11 | (0.25 | ) | (0.72 | ) | (0.97 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.81 | 0.07 | 1.03 | 1.10 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 16.68 | 0.07 | 1.86 | 1.93 | (0.08 | ) | (0.72 | ) | (0.80 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.91 | 0.08 | 1.04 | 1.12 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 16.76 | 0.09 | 1.88 | 1.97 | (0.10 | ) | (0.72 | ) | (0.82 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.07 | 0.16 | 1.05 | 1.21 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 16.94 | 0.22 | 1.89 | 2.11 | (0.26 | ) | (0.72 | ) | (0.98 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.20 | 0.17 | 1.07 | 1.24 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 17.07 | 0.25 | 1.91 | 2.16 | (0.31 | ) | (0.72 | ) | (1.03 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.23 | 0.19 | 1.07 | 1.26 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 17.10 | 0.28 | 1.92 | 2.20 | (0.35 | ) | (0.72 | ) | (1.07 | ) | ||||||||||||||||||
Year ended 3-31-2016 | 19.64 | 0.25 | (1.03 | ) | (0.78 | ) | (0.21 | ) | (1.55 | ) | (1.76 | ) | ||||||||||||||||
Year ended 3-31-2015(6) | 20.64 | 0.20 | 1.15 | 1.35 | (0.24 | ) | (2.11 | ) | (2.35 | ) | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.12 | 0.12 | 1.05 | 1.17 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 16.97 | 0.16 | 1.90 | 2.06 | (0.19 | ) | (0.72 | ) | (0.91 | ) | ||||||||||||||||||
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(8) | 15.79 | 0.01 | 1.39 | 1.40 | — | — | — | |||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.17 | 0.15 | 1.06 | 1.21 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 17.03 | 0.22 | 1.90 | 2.12 | (0.26 | ) | (0.72 | ) | (0.98 | ) | ||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
.
146 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 19.24 | 6.69 | % | $ | 138 | 1.26 | %(4) | 1.57 | %(4) | — | % | — | % | 12 | % | ||||||||||||||||
Year ended 3-31-2017 | 18.13 | 12.62 | 140 | 1.26 | 1.20 | — | — | 54 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.88 | 6.25 | 6 | 2.04 | (4) | 0.79 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 17.81 | 11.74 | 7 | 2.04 | 0.40 | — | — | 54 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.99 | 6.25 | 36 | 1.95 | (4) | 0.88 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 17.91 | 11.93 | 41 | 1.93 | 0.50 | — | — | 54 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.17 | 6.73 | 6 | 1.14 | (4)(10) | 1.68 | (4) | 1.50 | (4) | 1.32 | (4) | 12 | ||||||||||||||||||||
Year ended 3-31-2017 | 18.07 | 12.68 | 6 | 1.16 | 1.25 | 1.56 | 0.85 | 54 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.31 | 6.83 | 171 | 0.97 | (4) | 1.86 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 18.20 | 12.90 | 179 | 0.95 | 1.42 | — | — | 54 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.34 | 6.91 | 2 | 0.81 | (4) | 2.04 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 18.23 | 13.11 | 2 | 0.80 | 1.55 | — | — | 54 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 17.10 | -4.16 | 1 | 0.79 | 1.39 | — | — | 45 | ||||||||||||||||||||||||
Year ended 3-31-2015(6) | 19.64 | 6.76 | — | * | 0.79 | (4) | 1.46 | (4) | — | — | 48 | (7) | ||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.21 | 6.50 | — | * | 1.55 | (4) | 1.31 | (4) | — | — | 12 | |||||||||||||||||||||
Year ended 3-31-2017 | 18.12 | 12.31 | 1 | 1.53 | 0.88 | — | — | 54 | ||||||||||||||||||||||||
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(8) | 17.19 | 8.93 | — | * | 1.51 | (4) | 0.23 | (4) | — | — | 45 | (9) | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.27 | 6.66 | 5 | 1.20 | (4) | 1.62 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 18.17 | 12.67 | 6 | 1.19 | 1.25 | — | — | 54 | ||||||||||||||||||||||||
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 |
(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. |
(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. |
(10) | Annualized expense ratio based on the period excluding reorganization expenses was 1.13%. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 147 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY EMERGING MARKETS EQUITY FUND
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 16.95 | $ | 0.06 | $ | 2.98 | $ | 3.04 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 13.59 | (0.02 | ) | 3.38 | 3.36 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.01 | (0.03 | ) | 2.46 | 2.43 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 11.34 | (0.14 | ) | 2.81 | 2.67 | — | — | — | ||||||||||||||||||||
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 | ) | — | * | — | — | * | ||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.65 | 0.00 | * | 2.56 | 2.56 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 11.84 | (0.12 | ) | 2.93 | 2.81 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.20 | 0.09 | 3.02 | 3.11 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 13.76 | 0.01 | 3.43 | 3.44 | — | — | — | |||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.47 | 0.11 | 3.07 | 3.18 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 13.96 | 0.03 | 3.48 | 3.51 | — | — | — | |||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.56 | 0.14 | 3.06 | 3.20 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.01 | 0.06 | 3.49 | 3.55 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2016 | 16.50 | 0.06 | (2.41 | ) | (2.35 | ) | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||
Year ended 3-31-2015(7) | 16.41 | (0.03 | ) | 0.26 | 0.23 | (0.14 | ) | — | (0.14 | ) | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.83 | 0.04 | 2.96 | 3.00 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 13.53 | (0.07 | ) | 3.37 | 3.30 | — | — | — | ||||||||||||||||||||
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(9) | 14.07 | (0.04 | ) | (0.16 | ) | (0.20 | ) | — | — | — | ||||||||||||||||||
Class T Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(11) | 17.95 | 0.03 | 2.02 | 2.05 | — | — | — | |||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.27 | 0.08 | 3.03 | 3.11 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 13.84 | (0.02 | ) | 3.45 | 3.43 | — | — | — | ||||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | Class is closed to investment. |
.
148 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 19.99 | 17.94 | % | $ | 482 | 1.49 | %(4) | 0.66 | %(4) | — | % | — | % | 22 | % | ||||||||||||||||
Year ended 3-31-2017 | 16.95 | 24.72 | 293 | 1.55 | -0.14 | 1.68 | -0.27 | 59 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.44 | 17.35 | 5 | 2.49 | (4) | -0.33 | (4) | — | — | 22 | ||||||||||||||||||||||
Year ended 3-31-2017 | 14.01 | 23.54 | 4 | 2.50 | -1.10 | 2.78 | -1.38 | 59 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.21 | 17.47 | 68 | 2.16 | (4) | -0.02 | (4) | — | — | 22 | ||||||||||||||||||||||
Year ended 3-31-2017 | 14.65 | 23.73 | 37 | 2.36 | -0.96 | — | — | 59 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares(6) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.31 | 18.08 | — | * | 1.23 | (4) | 0.93 | (4) | — | — | 22 | |||||||||||||||||||||
Year ended 3-31-2017 | 17.20 | 25.00 | — | * | 1.35 | 0.05 | — | — | 59 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.65 | 18.20 | 1,008 | 0.99 | (4) | 1.13 | (4) | 1.13 | (4) | 0.99 | (4) | 22 | ||||||||||||||||||||
Year ended 3-31-2017 | 17.47 | 25.14 | 465 | 1.19 | 0.20 | 1.23 | 0.16 | 59 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.76 | 18.22 | 241 | 0.97 | (4) | 1.40 | (4) | — | — | 22 | ||||||||||||||||||||||
Year ended 3-31-2017 | 17.56 | 25.34 | 18 | 1.07 | 0.37 | — | — | 59 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 14.01 | -14.20 | 7 | 1.09 | 0.43 | — | — | 98 | ||||||||||||||||||||||||
Year ended 3-31-2015(7) | 16.50 | 1.47 | 6 | 1.08 | (4) | -0.30 | (4) | — | — | 103 | (8) | |||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.83 | 17.83 | 18 | 1.73 | (4) | 0.43 | (4) | — | — | 22 | ||||||||||||||||||||||
Year ended 3-31-2017 | 16.83 | 24.39 | 11 | 1.82 | -0.44 | — | — | 59 | ||||||||||||||||||||||||
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(9) | 13.87 | -1.35 | — | * | 1.80 | (4) | -1.09 | (4) | — | — | 142 | (10) | ||||||||||||||||||||
Class T Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(11) | 20.00 | 11.42 | — | * | 1.21 | (4) | 0.66 | (4) | — | — | 22 | (12) | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.38 | 18.01 | 42 | 1.38 | (4) | 0.80 | (4) | — | — | 22 | ||||||||||||||||||||||
Year ended 3-31-2017 | 17.27 | 24.78 | 21 | 1.50 | -0.14 | — | — | 59 | ||||||||||||||||||||||||
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 |
(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, 2015. |
(9) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
(10) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
(11) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(12) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 149 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY EUROPEAN OPPORTUNITIES FUND
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 28.53 | $ | 0.30 | $ | 3.88 | $ | 4.18 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 26.29 | 0.53 | 2.07 | 2.60 | (0.36 | ) | — | (0.36 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.26 | 0.13 | 3.56 | 3.69 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 24.31 | 0.12 | 2.00 | 2.12 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 26.94 | 0.20 | 3.65 | 3.85 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 24.89 | 0.24 | 2.06 | 2.30 | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class E Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 28.74 | 0.36 | 3.91 | 4.27 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 26.46 | 0.48 | 2.25 | 2.73 | (0.45 | ) | — | (0.45 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 28.78 | 0.39 | 3.91 | 4.30 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 26.50 | 0.39 | 2.37 | 2.76 | (0.48 | ) | — | (0.48 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 28.92 | 0.29 | 4.05 | 4.34 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 26.62 | 0.59 | 2.23 | 2.82 | (0.52 | ) | — | (0.52 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 29.51 | 0.31 | (2.98 | ) | (2.67 | ) | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||
Year ended 3-31-2015(6) | 29.18 | 0.05 | 0.85 | 0.90 | (0.57 | ) | — | (0.57 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 28.50 | 0.28 | 3.88 | 4.16 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 26.27 | 0.34 | 2.23 | 2.57 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
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(8) | 24.16 | 0.00 | 0.54 | 0.54 | — | — | — | |||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 28.75 | 0.33 | 3.92 | 4.25 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 26.46 | 0.47 | 2.21 | 2.68 | (0.39 | ) | — | (0.39 | ) | |||||||||||||||||||
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 | ) |
* | 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) | 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. |
.
150 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 32.71 | 14.69 | % | $ | 80 | 1.66 | %(3) | 1.99 | %(3) | 41 | % | ||||||||||||
Year ended 3-31-2017 | 28.53 | 9.98 | 75 | 1.71 | 2.00 | 79 | ||||||||||||||||||
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 | ||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 29.95 | 14.05 | 1 | 2.76 | (3) | 0.95 | (3) | 41 | ||||||||||||||||
Year ended 3-31-2017 | 26.26 | 8.78 | 1 | 2.81 | 0.48 | 79 | ||||||||||||||||||
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 | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 30.79 | 14.29 | 7 | 2.31 | (3) | 1.38 | (3) | 41 | ||||||||||||||||
Year ended 3-31-2017 | 26.94 | 9.32 | 8 | 2.34 | 0.94 | 79 | ||||||||||||||||||
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 | ||||||||||||||||||
Class E Shares(5) | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 33.01 | 14.86 | — | * | 1.31 | (3) | 2.31 | (3) | 41 | |||||||||||||||
Year ended 3-31-2017 | 28.74 | 10.42 | — | * | 1.33 | 1.79 | 79 | |||||||||||||||||
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 | |||||||||||||||||
Class I Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 33.08 | 14.94 | 71 | 1.23 | (3) | 2.54 | (3) | 41 | ||||||||||||||||
Year ended 3-31-2017 | 28.78 | 10.54 | 92 | 1.22 | 1.44 | 79 | ||||||||||||||||||
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 | ||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 33.26 | 15.01 | 104 | 1.03 | (3) | 1.77 | (3) | 41 | ||||||||||||||||
Year ended 3-31-2017 | 28.92 | 10.71 | 1 | 1.06 | 2.17 | 79 | ||||||||||||||||||
Year ended 3-31-2016 | 26.62 | -9.11 | 2 | 1.04 | 1.07 | 91 | ||||||||||||||||||
Year ended 3-31-2015(6) | 29.51 | 3.20 | 2 | 1.08 | (3) | 0.26 | (3) | 172 | (7) | |||||||||||||||
Class R Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 32.66 | 14.60 | 1 | 1.79 | (3) | 1.80 | (3) | 41 | ||||||||||||||||
Year ended 3-31-2017 | 28.50 | 9.88 | 1 | 1.81 | 1.29 | 79 | ||||||||||||||||||
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(8) | 24.70 | 2.28 | — | * | 1.74 | (3) | 0.02 | (3) | 71 | (9) | ||||||||||||||
Class Y Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 33.00 | 14.78 | 1 | 1.44 | (3) | 2.11 | (3) | 41 | ||||||||||||||||
Year ended 3-31-2017 | 28.75 | 10.24 | 1 | 1.50 | 1.74 | 79 | ||||||||||||||||||
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 |
(5) | Class share is closed to investment. |
(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. |
(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. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 151 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY GLOBAL BOND FUND
Net Asset Value, Beginning of Period | Net Investment Income(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 9.68 | $ | 0.15 | $ | 0.09 | $ | 0.24 | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | ||||||||||||
Year ended 3-31-2017 | 9.17 | 0.34 | 0.37 | 0.71 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.67 | 0.12 | 0.08 | 0.20 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 9.16 | 0.26 | 0.38 | 0.64 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.68 | 0.11 | 0.09 | 0.20 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 9.16 | 0.26 | 0.39 | 0.65 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.68 | 0.16 | 0.09 | 0.25 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 9.16 | 0.34 | 0.40 | 0.74 | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.68 | 0.14 | 0.11 | 0.25 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 9.17 | 0.33 | 0.40 | 0.73 | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 9.59 | 0.36 | (0.48 | ) | (0.12 | ) | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||
Year ended 3-31-2015(6) | 10.15 | 0.24 | (0.56 | ) | (0.32 | ) | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.66 | 0.13 | 0.09 | 0.22 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 9.15 | 0.27 | 0.39 | 0.66 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
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(8) | 10.17 | 0.09 | 0.04 | 0.13 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.68 | 0.15 | 0.09 | 0.24 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 9.17 | 0.33 | 0.38 | 0.71 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
(7) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
152 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 9.83 | 2.49 | % | $ | 46 | 1.01 | %(4)(10) | 3.10 | %(4) | 1.34 | %(4) | 2.77 | %(4) | 21 | % | ||||||||||||||||
Year ended 3-31-2017 | 9.68 | 7.81 | 47 | 0.99 | 3.63 | 1.33 | 3.29 | 20 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.82 | 2.11 | 2 | 1.76 | (4)(11) | 2.36 | (4) | 2.21 | (4) | 1.91 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 9.67 | 7.01 | 3 | 1.74 | 2.73 | 2.15 | 2.32 | 20 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.83 | 2.10 | 16 | 1.77 | (4)(12) | 2.33 | (4) | 1.99 | (4) | 2.11 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 9.68 | 7.13 | 16 | 1.74 | 2.72 | 1.95 | 2.51 | 20 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.83 | 2.63 | 96 | 0.77 | (4)(13) | 3.34 | (4) | 0.99 | (4) | 3.12 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 9.68 | 8.19 | 88 | 0.74 | 3.54 | 0.95 | 3.33 | 20 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.83 | 2.62 | 26 | 0.76 | (4)(14) | 2.99 | (4) | 0.83 | (4) | 2.92 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 9.68 | 8.06 | 3 | 0.75 | 3.50 | 0.78 | 3.47 | 20 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 9.17 | -1.30 | — | * | 0.76 | 3.84 | 0.76 | 3.84 | 14 | |||||||||||||||||||||||
Year ended 3-31-2015(6) | 9.59 | -3.23 | — | * | 0.70 | (4) | 3.62 | (4) | — | — | 26 | (7) | ||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.81 | 2.24 | 1 | 1.50 | (4) | 2.61 | (4) | 1.58 | (4) | 2.53 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 9.66 | 7.29 | 1 | 1.50 | 2.90 | 1.53 | 2.87 | 20 | ||||||||||||||||||||||||
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(8) | 10.24 | 1.30 | — | * | 1.45 | (4) | 3.10 | (4) | — | — | 26 | (9) | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 9.83 | 2.49 | 3 | 1.02 | (4)(15) | 3.08 | (4) | 1.21 | (4) | 2.89 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2017 | 9.68 | 7.81 | 3 | 0.99 | 3.43 | 1.18 | 3.24 | 20 | ||||||||||||||||||||||||
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 |
(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. |
(10) | Annualized expense ratio based on the period excluding reorganization expenses was 0.99%. |
(11) | Annualized expense ratio based on the period excluding reorganization expenses was 1.74%. |
(12) | Annualized expense ratio based on the period excluding reorganization expenses was 1.74%. |
(13) | Annualized expense ratio based on the period excluding reorganization expenses was 0.74%. |
(14) | Annualized expense ratio based on the period excluding reorganization expenses was 0.74%. |
(15) | Annualized expense ratio based on the period excluding reorganization expenses was 0.99%. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 153 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY GLOBAL EQUITY INCOME FUND
Net Asset Value, Beginning of Period | Net Investment Income(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 12.48 | $ | 0.21 | $ | 1.05 | $ | 1.26 | $ | (0.23 | ) | $ | — | $ | (0.23 | ) | ||||||||||||
Year ended 3-31-2017 | 11.88 | 0.53 | 0.50 | 1.03 | (0.43 | ) | — | (0.43 | ) | |||||||||||||||||||
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(7) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.47 | 0.17 | 1.05 | 1.22 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 11.87 | 0.35 | 0.60 | 0.95 | (0.35 | ) | — | (0.35 | ) | |||||||||||||||||||
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 9-30-2017 (unaudited) | 12.47 | 0.17 | 1.05 | 1.22 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 11.87 | 0.36 | 0.59 | 0.95 | (0.35 | ) | — | (0.35 | ) | |||||||||||||||||||
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 9-30-2017 (unaudited) | 12.48 | 0.24 | 1.05 | 1.29 | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 11.88 | 0.39 | 0.68 | 1.07 | (0.47 | ) | — | (0.47 | ) | |||||||||||||||||||
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 N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.49 | 0.24 | 1.06 | 1.30 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 11.89 | 0.48 | 0.61 | 1.09 | (0.49 | ) | — | (0.49 | ) | |||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.48 | 0.19 | 1.06 | 1.25 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 11.88 | 0.39 | 0.61 | 1.00 | (0.40 | ) | — | (0.40 | ) | |||||||||||||||||||
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(10) | 11.28 | 0.11 | 0.46 | 0.57 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.48 | 0.22 | 1.04 | 1.26 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 11.87 | 0.44 | 0.61 | 1.05 | (0.44 | ) | — | (0.44 | ) | |||||||||||||||||||
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. |
(4) | Annualized |
154 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 13.51 | 10.13 | % | $ | 67 | 1.30 | %(4) | 3.26 | %(4) | — | % | — | % | 41 | % | ||||||||||||||||
Year ended 3-31-2017 | 12.48 | 8.87 | 70 | 1.30 | 4.45 | 1.38 | 4.37 | 103 | ||||||||||||||||||||||||
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 | (6) | |||||||||||||||||||
Class B Shares(7) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.51 | 9.87 | 2 | 1.94 | (4) | 2.63 | (4) | — | — | 41 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.47 | 8.17 | 2 | 1.95 | 2.88 | — | — | 103 | ||||||||||||||||||||||||
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 | (6) | |||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.51 | 9.86 | 12 | 1.95 | (4) | 2.60 | (4) | — | — | 41 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.47 | 8.17 | 12 | 1.95 | 2.95 | — | — | 103 | ||||||||||||||||||||||||
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 | (6) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.52 | 10.39 | 219 | 0.99 | (4) | 3.61 | (4) | — | — | 41 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.48 | 9.26 | 250 | 0.94 | 3.18 | 0.96 | 3.16 | 103 | ||||||||||||||||||||||||
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 | (6) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.53 | 10.48 | 1 | 0.82 | (4) | 3.70 | (4) | — | — | 41 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.49 | 9.39 | 1 | 0.81 | 3.99 | — | — | 103 | ||||||||||||||||||||||||
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 | (9) | |||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.52 | 10.07 | — | * | 1.57 | (4) | 2.97 | (4) | — | — | 41 | |||||||||||||||||||||
Year ended 3-31-2017 | 12.48 | 8.58 | — | * | 1.56 | 3.23 | — | — | 103 | |||||||||||||||||||||||
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(10) | 11.82 | 5.05 | — | * | 1.67 | (4) | 3.36 | (4) | 1.87 | (4) | 3.16 | (4) | 73 | (6) | ||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.51 | 10.19 | 5 | 1.19 | (4) | 3.35 | (4) | 1.20 | (4) | 3.34 | (4) | 41 | ||||||||||||||||||||
Year ended 3-31-2017 | 12.48 | 9.08 | 4 | 1.19 | 3.67 | 1.21 | 3.65 | 103 | ||||||||||||||||||||||||
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 | (6) |
(5) | For the period from June 4, 2012 (commencement of operations of the class) through March 31, 2013. |
(6) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
(7) | 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. |
(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, 2015. |
(10) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 155 |
Table of Contents
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 9-30-2017 (unaudited) | $ | 42.67 | $ | 0.11 | $ | 4.18 | $ | 4.29 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 39.23 | 0.04 | 3.40 | 3.44 | — | — | — | |||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(4) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 36.62 | (0.10 | ) | 3.58 | 3.48 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 34.07 | (0.45 | ) | 3.00 | 2.55 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 36.98 | (0.04 | ) | 3.61 | 3.57 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 34.26 | (0.29 | ) | 3.01 | 2.72 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares(9) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 42.94 | 0.16 | 4.21 | 4.37 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 39.38 | 0.07 | 3.49 | 3.56 | — | — | — | |||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 43.44 | 0.20 | 4.25 | 4.45 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 39.81 | 0.04 | 3.59 | 3.63 | — | — | — | |||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 43.64 | 0.16 | 4.34 | 4.50 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 39.92 | 0.10 | 3.62 | 3.72 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2016 | 43.32 | 0.13 | (2.52 | ) | (2.39 | ) | (0.11 | ) | (0.90 | ) | (1.01 | ) | ||||||||||||||||
Year ended 3-31-2015(5) | 42.56 | 0.15 | 1.22 | 1.37 | (0.10 | ) | (0.51 | ) | (0.61 | ) | ||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 42.41 | 0.05 | 4.15 | 4.20 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 39.08 | (0.14 | ) | 3.47 | 3.33 | — | — | — | ||||||||||||||||||||
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 Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 42.86 | 0.15 | 4.17 | 4.32 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 39.37 | 0.00 | * | 3.49 | 3.49 | — | — | — | ||||||||||||||||||||
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 | ) |
* | 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) | 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. |
156 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 46.96 | 10.06 | % | $ | 119 | 1.42 | %(3) | 0.51 | %(3) | 35 | % | ||||||||||||
Year ended 3-31-2017 | 42.67 | 8.77 | 115 | 1.48 | 0.11 | 66 | ||||||||||||||||||
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 | ||||||||||||||||||
Class B Shares(4) |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 40.10 | 9.50 | 2 | 2.48 | (3) | -0.50 | (3) | 35 | ||||||||||||||||
Year ended 3-31-2017 | 36.62 | 7.48 | 2 | 2.67 | -1.30 | 66 | ||||||||||||||||||
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 | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 40.55 | 9.66 | 25 | 2.16 | (3) | -0.21 | (3) | 35 | ||||||||||||||||
Year ended 3-31-2017 | 36.98 | 7.94 | 25 | 2.21 | -0.84 | 66 | ||||||||||||||||||
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 | ||||||||||||||||||
Class E Shares(9) |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 47.31 | 10.20 | — | * | 1.21 | (3) | 0.72 | (3) | 35 | |||||||||||||||
Year ended 3-31-2017 | 42.94 | 9.04 | — | * | 1.21 | 0.17 | 66 | |||||||||||||||||
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 | |||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 47.89 | 10.24 | 253 | 1.12 | (3) | 0.85 | (3) | 35 | ||||||||||||||||
Year ended 3-31-2017 | 43.44 | 9.12 | 270 | 1.11 | 0.10 | 66 | ||||||||||||||||||
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 | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 48.14 | 10.31 | 29 | 0.95 | (3) | 0.67 | (3) | 35 | ||||||||||||||||
Year ended 3-31-2017 | 43.64 | 9.32 | 7 | 0.95 | 0.24 | 66 | ||||||||||||||||||
Year ended 3-31-2016 | 39.92 | -5.61 | 3 | 0.94 | 0.31 | 51 | ||||||||||||||||||
Year ended 3-31-2015(5) | 43.32 | 3.31 | 3 | 0.95 | (3) | 0.55 | (3) | 61 | (6) | |||||||||||||||
Class R Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 46.61 | 9.90 | 2 | 1.70 | (3) | 0.22 | (3) | 35 | ||||||||||||||||
Year ended 3-31-2017 | 42.41 | 8.52 | 2 | 1.69 | -0.35 | 66 | ||||||||||||||||||
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 | (3) | 0.15 | (3) | 40 | (8) | ||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 47.18 | 10.08 | 10 | 1.36 | (3) | 0.66 | (3) | 35 | ||||||||||||||||
Year ended 3-31-2017 | 42.86 | 8.86 | 14 | 1.36 | 0.00 | 66 | ||||||||||||||||||
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 |
(5) | For the period from July 31, 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) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
(8) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
(9) | Class is closed to investment. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 157 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY GLOBAL INCOME ALLOCATION FUND
Net Asset Value, Beginning of Period | Net Investment Income(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 14.93 | $ | 0.40 | $ | 0.29 | $ | 0.69 | $ | (0.34 | ) | $ | — | $ | (0.34 | ) | ||||||||||||
Year ended 3-31-2017 | 13.96 | 0.64 | 0.88 | 1.52 | (0.55 | ) | — | (0.55 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.66 | 0.32 | 0.29 | 0.61 | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 13.72 | 0.45 | 0.92 | 1.37 | (0.43 | ) | — | (0.43 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.75 | 0.34 | 0.29 | 0.63 | (0.29 | ) | — | (0.29 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 13.80 | 0.48 | 0.94 | 1.42 | (0.47 | ) | — | (0.47 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.94 | 0.39 | 0.29 | 0.68 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 13.97 | 0.55 | 0.97 | 1.52 | (0.55 | ) | — | (0.55 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.06 | 0.42 | 0.30 | 0.72 | (0.37 | ) | — | (0.37 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 14.08 | 0.57 | 1.01 | 1.58 | (0.60 | ) | — | (0.60 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.07 | 0.43 | 0.31 | 0.74 | (0.38 | ) | — | (0.38 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 14.09 | 0.65 | 0.95 | 1.60 | (0.62 | ) | — | (0.62 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 15.55 | 0.67 | (1.47 | ) | (0.80 | ) | (0.66 | ) | — | (0.66 | ) | |||||||||||||||||
Year ended 3-31-2015(6) | 15.95 | 0.45 | (0.40 | ) | 0.05 | (0.45 | ) | — | (0.45 | ) | ||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(4) | 14.93 | 0.37 | 0.29 | 0.66 | (0.32 | ) | — | (0.32 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 13.96 | 0.52 | 0.97 | 1.49 | (0.52 | ) | — | (0.52 | ) | |||||||||||||||||||
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(8) | 14.37 | 0.15 | 0.32 | 0.47 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.00 | 0.40 | 0.30 | 0.70 | (0.35 | ) | — | (0.35 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 14.02 | 0.58 | 0.97 | 1.55 | (0.57 | ) | — | (0.57 | ) | |||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
158 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 15.28 | 4.65 | % | $ | 203 | 1.25 | %(4) | 5.19 | %(4) | — | % | — | % | 25 | % | ||||||||||||||||
Year ended 3-31-2017 | 14.93 | 11.19 | 212 | 1.28 | 4.50 | — | — | 70 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.99 | 4.16 | 3 | 2.13 | (4) | 4.34 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 14.66 | 10.23 | 4 | 2.15 | 3.17 | — | — | 70 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.09 | 4.31 | 43 | 1.89 | (4) | 4.56 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 14.75 | 10.50 | 48 | 1.90 | 3.41 | — | — | 70 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.28 | 4.56 | 3 | 1.32 | (4) | 5.10 | (4) | 1.47 | (4) | 4.95 | (4) | 25 | ||||||||||||||||||||
Year ended 3-31-2017 | 14.94 | 11.13 | 3 | 1.33 | 3.86 | 1.56 | 3.63 | 70 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.41 | 4.79 | 406 | 0.94 | (4) | 5.51 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 15.06 | 11.54 | 454 | 0.94 | 3.90 | — | — | 70 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.43 | 4.87 | 32 | 0.78 | (4) | 5.45 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 15.07 | 11.70 | 2 | 0.78 | 4.48 | — | — | 70 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 14.09 | -5.21 | 2 | 0.78 | 4.58 | — | — | 53 | ||||||||||||||||||||||||
Year ended 3-31-2015(6) | 15.55 | 0.36 | 2 | 0.78 | (4) | 4.40 | (4) | — | — | 69 | (7) | |||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.27 | 4.45 | — | * | 1.53 | (4) | 4.90 | (4) | — | — | 25 | |||||||||||||||||||||
Year ended 3-31-2017 | 14.93 | 10.92 | — | * | 1.52 | 3.62 | — | — | 70 | |||||||||||||||||||||||
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(8) | 14.79 | 3.30 | — | * | 1.52 | (4) | 3.73 | (4) | 1.53 | (4) | 3.72 | (4) | 109 | (9) | ||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.35 | 4.69 | 3 | 1.17 | (4) | 5.19 | (4) | 1.17 | (4) | 5.19 | (4) | 25 | ||||||||||||||||||||
Year ended 3-31-2017 | 15.00 | 11.33 | 3 | 1.17 | 4.02 | 1.18 | 4.01 | 70 | ||||||||||||||||||||||||
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 |
(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. |
(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. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 159 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY GOVERNMENT 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 9-30-2017 (unaudited) | $ | 1.00 | $ | 0.00 | * | $ | 0.00 | $ | 0.00 | * | $ | — | * | $ | — | $ | — | * | ||||||||||
Year ended 3-31-2017 | 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 | * | — | * | — | — | * | ||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 1.00 | 0.00 | * | 0.00 | 0.00 | * | — | * | — | — | * | |||||||||||||||||
Year ended 3-31-2017 | 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 | * | — | * | — | — | * | ||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 1.00 | 0.00 | * | 0.00 | 0.00 | * | — | * | — | — | * | |||||||||||||||||
Year ended 3-31-2017 | 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 | * | — | * | — | — | * | ||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 1.00 | 0.00 | * | 0.00 | 0.00 | * | — | * | — | — | * | |||||||||||||||||
Year ended 3-31-2017 | 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 | * | — | * | — | — | * | ||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.. |
160 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3) | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 1.00 | 0.11 | % | $ | 131 | 0.80 | %(4) | 0.21 | %(4) | — | % | — | % | ||||||||||||||
Year ended 3-31-2017 | 1.00 | 0.03 | 184 | 0.60 | 0.03 | 0.63 | 0.00 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 1.00 | 0.01 | 4 | 0.99 | (4) | 0.01 | (4) | 1.75 | (4) | -0.75 | (4) | |||||||||||||||||
Year ended 3-31-2017 | 1.00 | 0.01 | 5 | 0.61 | 0.02 | 1.71 | -1.08 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 1.00 | 0.01 | 22 | 1.00 | (4) | 0.01 | (4) | 1.73 | (4) | -0.72 | (4) | |||||||||||||||||
Year ended 3-31-2017 | 1.00 | 0.01 | 29 | 0.61 | 0.02 | 1.61 | -0.98 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 1.00 | 0.10 | 6 | 0.82 | (4) | 0.19 | (4) | — | — | |||||||||||||||||||
Year ended 3-31-2017 | 1.00 | 0.01 | 6 | 0.61 | 0.02 | 0.70 | -0.07 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 1.00 | 0.13 | 4 | 0.60 | (4) | 0.64 | (4) | — | — |
See Accompanying Notes to Financial Statements
2017 | SEMIANNUAL REPORT | 161 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY HIGH INCOME FUND
Net Asset Value, Beginning of Period | Net Investment Income(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 7.60 | $ | 0.27 | $ | 0.02 | $ | 0.29 | $ | (0.27 | ) | $ | — | $ | (0.27 | ) | ||||||||||||
Year ended 3-31-2017 | 6.91 | 0.55 | 0.68 | 1.23 | (0.54 | ) | — | (0.54 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.60 | 0.24 | 0.02 | 0.26 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 6.91 | 0.49 | 0.68 | 1.17 | (0.48 | ) | — | (0.48 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.60 | 0.25 | 0.02 | 0.27 | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 6.91 | 0.50 | 0.68 | 1.18 | (0.49 | ) | — | (0.49 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.60 | 0.26 | 0.02 | 0.28 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 6.91 | 0.53 | 0.68 | 1.21 | (0.52 | ) | — | (0.52 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.60 | 0.28 | 0.02 | 0.30 | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 6.91 | 0.56 | 0.69 | 1.25 | (0.56 | ) | — | (0.56 | ) | |||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.60 | 0.29 | 0.02 | 0.31 | (0.29 | ) | — | (0.29 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 6.91 | 0.59 | 0.67 | 1.26 | (0.57 | ) | — | (0.57 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 8.09 | 0.60 | (1.18 | ) | (0.58 | ) | (0.60 | ) | — | (0.60 | ) | |||||||||||||||||
Year ended 3-31-2015(6) | 8.63 | 0.40 | (0.40 | ) | 0.00 | * | (0.40 | ) | (0.14 | ) | (0.54 | ) | ||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.60 | 0.26 | 0.02 | 0.28 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 6.91 | 0.52 | 0.68 | 1.20 | (0.51 | ) | — | (0.51 | ) | |||||||||||||||||||
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(8) | 8.54 | 0.16 | 0.17 | 0.33 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Class T Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(10) | 7.62 | 0.12 | 0.00 | * | 0.12 | (0.12 | ) | — | (0.12 | ) | ||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.60 | 0.27 | 0.02 | 0.29 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 6.91 | 0.55 | 0.68 | 1.23 | (0.54 | ) | — | (0.54 | ) | |||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
162 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 7.62 | 3.90 | % | $ | 1,221 | 0.95 | %(4) | 7.15 | %(4) | — | % | — | % | 20 | % | ||||||||||||||||
Year ended 3-31-2017 | 7.60 | 18.34 | 1,250 | 0.97 | 7.51 | — | — | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.62 | 3.50 | 70 | 1.72 | (4) | 6.39 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 7.60 | 17.46 | 79 | 1.72 | 6.72 | — | — | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.62 | 3.53 | 903 | 1.67 | (4) | 6.43 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 7.60 | 17.51 | 970 | 1.67 | 6.77 | — | — | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.62 | 3.77 | 10 | 1.19 | (4)(12) | 6.90 | (4) | 1.26 | (4) | 6.83 | (4) | 20 | ||||||||||||||||||||
Year ended 3-31-2017 | 7.60 | 18.08 | 10 | 1.19 | 7.22 | 1.28 | 7.13 | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.62 | 4.02 | 1,708 | 0.72 | (4) | 7.37 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 7.60 | 18.64 | 1,737 | 0.71 | 7.69 | — | — | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.62 | 4.11 | 66 | 0.57 | (4) | 7.50 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 7.60 | 18.83 | 34 | 0.56 | 8.04 | — | — | 35 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 6.91 | -7.35 | 55 | 0.56 | 8.36 | — | — | 29 | ||||||||||||||||||||||||
Year ended 3-31-2015(6) | 8.09 | 0.13 | 13 | 0.54 | (4) | 7.47 | (4) | — | — | 44 | (7) | |||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.62 | 3.71 | 68 | 1.30 | (4) | 6.79 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 7.60 | 17.94 | 70 | 1.31 | 7.05 | — | — | 35 | ||||||||||||||||||||||||
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(8) | 8.72 | 3.94 | — | * | 1.27 | (4) | 6.61 | (4) | — | — | 68 | (9) | ||||||||||||||||||||
Class T Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(10) | 7.62 | 1.64 | — | * | 0.81 | (4) | 6.61 | (4) | — | — | 20 | (11) | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 7.62 | 3.91 | 359 | 0.95 | (4) | 7.15 | (4) | 0.97 | (4) | 7.13 | (4) | 20 | ||||||||||||||||||||
Year ended 3-31-2017 | 7.60 | 18.33 | 396 | 0.96 | 7.46 | — | — | 35 | ||||||||||||||||||||||||
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 |
(7) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
(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. |
(10) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(11) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
(12) | Annualized expense ratio based on the period excluding reorganization expenses was 1.11%. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 163 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY INTERNATIONAL CORE EQUITY FUND
Net Asset Value, Beginning of Period | Net Investment Income(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 17.97 | $ | 0.18 | $ | 1.45 | $ | 1.63 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 15.97 | 0.30 | 1.96 | 2.26 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.98 | 0.09 | 1.29 | 1.38 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.24 | 0.07 | 1.80 | 1.87 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.02 | 0.10 | 1.30 | 1.40 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.27 | 0.11 | 1.81 | 1.92 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.09 | 0.18 | 1.46 | 1.64 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 16.08 | 0.22 | 2.04 | 2.26 | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.07 | 0.21 | 1.47 | 1.68 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 16.07 | 0.26 | 2.06 | 2.32 | (0.32 | ) | — | (0.32 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.13 | 0.17 | 1.53 | 1.70 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 16.11 | 0.29 | 2.07 | 2.36 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 18.04 | 0.23 | (1.94 | ) | (1.71 | ) | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||
Year ended 3-31-2015(6) | 20.09 | 0.13 | (0.12 | ) | 0.01 | (0.27 | ) | (1.79 | ) | (2.06 | ) | |||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.96 | 0.13 | 1.48 | 1.61 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 15.97 | 0.17 | 2.04 | 2.21 | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||||
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(8) | 15.40 | 0.04 | 0.54 | 0.58 | — | — | — | |||||||||||||||||||||
Class T Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(10) | 18.96 | 0.03 | 0.62 | 0.65 | — | — | — | |||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.09 | 0.18 | 1.47 | 1.65 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 16.08 | 0.26 | 2.02 | 2.28 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
.
164 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 19.60 | 9.13 | % | $ | 658 | 1.26 | %(4) | 1.87 | %(4) | — | % | — | % | 38 | % | ||||||||||||||||
Year ended 3-31-2017 | 17.97 | 14.31 | 564 | 1.29 | 1.78 | — | — | 80 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.36 | 8.64 | 9 | 2.15 | (4) | 1.12 | (4) | — | — | 38 | ||||||||||||||||||||||
Year ended 3-31-2017 | 15.98 | 13.20 | 9 | 2.22 | 0.45 | — | — | 80 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.42 | 8.74 | 244 | 1.93 | (4) | 1.24 | (4) | — | — | 38 | ||||||||||||||||||||||
Year ended 3-31-2017 | 16.02 | 13.51 | 220 | 1.97 | 0.72 | — | �� | 80 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.73 | 9.07 | 7 | 1.30 | (4) | 1.87 | (4) | 1.57 | (4) | 1.60 | (4) | 38 | ||||||||||||||||||||
Year ended 3-31-2017 | 18.09 | 14.20 | 6 | 1.31 | 1.31 | 1.61 | 1.01 | 80 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.75 | 9.30 | 3,889 | 0.95 | (4) | 2.21 | (4) | — | — | 38 | ||||||||||||||||||||||
Year ended 3-31-2017 | 18.07 | 14.58 | 3,168 | 0.97 | 1.52 | — | — | 80 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.83 | 9.38 | 1,354 | 0.80 | (4) | 1.80 | (4) | — | — | 38 | ||||||||||||||||||||||
Year ended 3-31-2017 | 18.13 | 14.83 | 484 | 0.82 | 1.72 | — | — | 80 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 16.11 | -9.52 | 289 | 0.83 | 1.40 | — | — | 62 | ||||||||||||||||||||||||
Year ended 3-31-2015(6) | 18.04 | 0.48 | 21 | 0.86 | (4) | 1.10 | (4) | — | — | 87 | (7) | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.57 | 8.96 | 105 | 1.54 | (4) | 1.34 | (4) | — | — | 38 | ||||||||||||||||||||||
Year ended 3-31-2017 | 17.96 | 13.95 | 56 | 1.56 | 1.00 | — | — | 80 | ||||||||||||||||||||||||
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(8) | 15.98 | 3.77 | — | * | 1.62 | (4) | 0.96 | (4) | — | — | 81 | (9) | ||||||||||||||||||||
Class T Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(10) | 19.61 | 3.43 | — | * | 1.08 | (4) | 0.69 | (4) | — | — | 38 | (11) | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.74 | 9.12 | 513 | 1.19 | (4) | 1.92 | (4) | — | — | 38 | ||||||||||||||||||||||
Year ended 3-31-2017 | 18.09 | 14.34 | 416 | 1.24 | 1.56 | — | — | 80 | ||||||||||||||||||||||||
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 |
(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. |
(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. |
(10) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(11) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 165 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY LARGE CAP GROWTH FUND
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (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 9-30-2017 (unaudited) | $ | 19.17 | $ | (0.01 | ) | $ | 2.27 | $ | 2.26 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2017 | 17.66 | 0.00 | * | 2.42 | 2.42 | — | (0.91 | ) | (0.91 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.09 | (0.08 | ) | 1.79 | 1.71 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 14.22 | (0.14 | ) | 1.92 | 1.78 | — | (0.91 | ) | (0.91 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.22 | (0.07 | ) | 1.92 | 1.85 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 15.19 | (0.11 | ) | 2.05 | 1.94 | — | (0.91 | ) | (0.91 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.15 | (0.01 | ) | 2.26 | 2.25 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 17.64 | 0.00 | * | 2.42 | 2.42 | — | (0.91 | ) | (0.91 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.08 | 0.02 | 2.37 | 2.39 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 18.41 | 0.05 | 2.53 | 2.58 | — | (0.91 | ) | (0.91 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.18 | 0.04 | 2.38 | 2.42 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 18.47 | 0.07 | 2.55 | 2.62 | — | (0.91 | ) | (0.91 | ) | |||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.54 | (0.04 | ) | 2.18 | 2.14 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 17.16 | (0.06 | ) | 2.35 | 2.29 | — | (0.91 | ) | (0.91 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.63 | 0.00 | * | 2.32 | 2.32 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.04 | 0.00 | * | 2.50 | 2.50 | — | (0.91 | ) | (0.91 | ) | ||||||||||||||||||
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 | ) |
* | 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. |
.
166 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 21.43 | 11.79 | % | $ | 527 | 1.15 | %(4) | -0.07 | %(4) | 1.16 | %(4) | -0.08 | %(4) | 25 | % | ||||||||||||||||
Year ended 3-31-2017 | 19.17 | 14.12 | 487 | 1.15 | 0.01 | 1.19 | -0.03 | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.80 | 11.33 | 9 | 2.03 | (4) | -0.94 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 15.09 | 13.01 | 10 | 2.08 | -0.94 | — | — | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.07 | 11.41 | 96 | 1.87 | (4) | -0.79 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 16.22 | 13.24 | 97 | 1.87 | -0.73 | — | — | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.40 | 11.80 | 15 | 1.15 | (4) | -0.07 | (4) | 1.31 | (4) | -0.23 | (4) | 25 | ||||||||||||||||||||
Year ended 3-31-2017 | 19.15 | 14.14 | 13 | 1.15 | -0.01 | 1.36 | -0.22 | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.47 | 11.90 | 1,002 | 0.88 | (4) | 0.20 | (4) | 0.89 | (4) | 0.19 | (4) | 25 | ||||||||||||||||||||
Year ended 3-31-2017 | 20.08 | 14.42 | 961 | 0.88 | 0.24 | 0.88 | 0.24 | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.60 | 12.04 | 161 | 0.72 | (4) | 0.37 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 20.18 | 14.59 | 1 | 0.72 | 0.39 | — | — | 43 | ||||||||||||||||||||||||
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 R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.68 | 11.54 | 21 | 1.47 | (4) | -0.38 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 18.54 | 13.77 | 21 | 1.47 | -0.33 | — | — | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.95 | 11.82 | 35 | 1.06 | (4) | 0.02 | (4) | 1.13 | (4) | -0.05 | (4) | 25 | ||||||||||||||||||||
Year ended 3-31-2017 | 19.63 | 14.27 | 35 | 1.06 | 0.02 | 1.12 | -0.04 | 43 | ||||||||||||||||||||||||
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 |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
(7) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 167 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY LIMITED-TERM BOND FUND
Net Asset Value, Beginning of Period | Net Investment Income(1) | Net Realized | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 10.80 | $ | 0.09 | $ | 0.04 | $ | 0.13 | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | ||||||||||||
Year ended 3-31-2017 | 10.87 | 0.17 | (0.06 | ) | 0.11 | (0.18 | ) | — | (0.18 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.80 | 0.04 | 0.04 | 0.08 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.87 | 0.08 | (0.07 | ) | 0.01 | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.80 | 0.05 | 0.04 | 0.09 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.87 | 0.09 | (0.06 | ) | 0.03 | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.80 | 0.09 | 0.04 | 0.13 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.87 | 0.16 | (0.06 | ) | 0.10 | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.80 | 0.10 | 0.05 | 0.15 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.87 | 0.19 | (0.06 | ) | 0.13 | (0.20 | ) | — | (0.20 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.80 | 0.11 | 0.04 | 0.15 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.87 | 0.21 | (0.06 | ) | 0.15 | (0.22 | ) | — | (0.22 | ) | ||||||||||||||||||
Year ended 3-31-2016 | 10.92 | 0.19 | (0.05 | ) | 0.14 | (0.19 | ) | — | (0.19 | ) | ||||||||||||||||||
Year ended 3-31-2015(6) | 10.91 | 0.13 | 0.01 | 0.14 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.80 | 0.07 | 0.04 | 0.11 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.87 | 0.13 | (0.06 | ) | 0.07 | (0.14 | ) | — | (0.14 | ) | ||||||||||||||||||
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(8) | 11.19 | 0.02 | 0.02 | 0.04 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.80 | 0.09 | 0.04 | 0.13 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.87 | 0.17 | (0.06 | ) | 0.11 | (0.18 | ) | — | (0.18 | ) | ||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
.
168 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 10.84 | 1.24 | % | $ | 478 | 0.89 | %(4) | 1.66 | %(4) | — | % | — | % | 12 | % | ||||||||||||||||
Year ended 3-31-2017 | 10.80 | 0.99 | 536 | 0.88 | 1.59 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.84 | 0.77 | 7 | 1.82 | (4) | 0.73 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 10.80 | 0.12 | 10 | 1.74 | 0.71 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.84 | 0.85 | 72 | 1.66 | (4) | 0.89 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 10.80 | 0.24 | 87 | 1.62 | 0.83 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.84 | 1.19 | 5 | 0.98 | (4) | 1.57 | (4) | 1.00 | (4) | 1.55 | (4) | 12 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.80 | 0.89 | 5 | 0.98 | 1.46 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.84 | 1.36 | 785 | 0.65 | (4) | 1.90 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 10.80 | 1.23 | 871 | 0.64 | 1.79 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.84 | 1.44 | 88 | 0.50 | (4) | 2.05 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 10.80 | 1.38 | 88 | 0.49 | 1.94 | — | — | 65 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 10.87 | 1.35 | 2 | 0.49 | 1.76 | — | — | 46 | ||||||||||||||||||||||||
Year ended 3-31-2015(6) | 10.92 | 1.31 | 3 | 0.48 | (4) | 1.75 | (4) | — | — | 39 | (7) | |||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.84 | 1.05 | 1 | 1.26 | (4) | 1.29 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2017 | 10.80 | 0.62 | 1 | 1.24 | 1.21 | — | — | 65 | ||||||||||||||||||||||||
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(8) | 11.20 | 0.41 | — | * | 1.21 | (4) | 0.59 | (4) | — | — | 55 | (9) | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.84 | 1.24 | 13 | 0.89 | (4) | 1.66 | (4) | 0.91 | (4) | 1.64 | (4) | 12 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.80 | 0.99 | 16 | 0.88 | 1.57 | 0.89 | 1.56 | 65 | ||||||||||||||||||||||||
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 |
(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. |
(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. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 169 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 10.58 | $ | 0.01 | $ | 1.15 | $ | 1.16 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 9.46 | 0.08 | 1.14 | 1.22 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(6) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.35 | (0.04 | ) | 1.14 | 1.10 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 9.25 | 0.01 | 1.13 | 1.14 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.38 | (0.03 | ) | 1.14 | 1.11 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 9.28 | 0.02 | 1.13 | 1.15 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class E Shares(7) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.59 | 0.02 | 1.14 | 1.16 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 9.47 | 0.11 | 1.12 | 1.23 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.63 | 0.03 | 1.14 | 1.17 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 9.50 | 0.16 | 1.10 | 1.26 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(8) | 11.17 | 0.02 | 0.61 | 0.63 | — | — | — | |||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.55 | 0.00 | * | 1.15 | 1.15 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 9.44 | 0.09 | 1.11 | 1.20 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
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(10) | 8.88 | (0.01 | ) | 0.10 | 0.09 | — | — | — | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 10.58 | 0.02 | 1.14 | 1.16 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 9.46 | 0.11 | 1.12 | 1.23 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
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 | ) |
* | 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 the 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. |
(5) | Annualized. |
.
170 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver(3) | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver(3) | Ratio of Expenses to | 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 9-30-2017 (unaudited) | $ | 11.74 | 10.96 | % | $ | 78 | 0.49 | %(5) | 0.24 | %(5) | — | % | — | % | 7 | % | ||||||||||||||||
Year ended 3-31-2017 | 10.58 | 13.00 | 73 | 0.49 | 0.88 | 0.52 | 0.85 | 24 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(6) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.45 | 10.63 | 1 | 1.40 | (5) | -0.68 | (5) | 1.49 | (5) | -0.77 | (5) | 7 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.35 | 12.39 | 1 | 1.40 | 0.12 | 1.47 | 0.05 | 24 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.49 | 10.69 | 5 | 1.28 | (5) | -0.53 | (5) | — | — | 7 | ||||||||||||||||||||||
Year ended 3-31-2017 | 10.38 | 12.44 | 4 | 1.27 | 0.25 | — | — | 24 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares(7) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.75 | 11.05 | 1 | 0.39 | (5) | 0.34 | (5) | 0.40 | (5) | 0.33 | (5) | 7 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.59 | 13.07 | — | * | 0.39 | 1.16 | — | — | 24 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.80 | 11.01 | 120 | 0.16 | (5) | 0.57 | (5) | 0.18 | (5) | 0.55 | (5) | 7 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.63 | 13.32 | 109 | 0.16 | 1.56 | 0.16 | 1.56 | 24 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(8) | 11.80 | 5.64 | — | * | 0.14 | (5) | 0.64 | (5) | — | — | 7 | (9) | ||||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.70 | 10.90 | 1 | 0.66 | (5) | 0.08 | (5) | — | — | 7 | ||||||||||||||||||||||
Year ended 3-31-2017 | 10.55 | 12.78 | 1 | 0.66 | 0.94 | — | — | 24 | ||||||||||||||||||||||||
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(10) | 8.97 | 1.01 | — | * | 0.72 | (5) | -0.55 | (5) | — | — | 21 | (11) | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.74 | 10.96 | 1 | 0.38 | (5) | 0.33 | (5) | 0.41 | (5) | 0.30 | (5) | 7 | ||||||||||||||||||||
Year ended 3-31-2017 | 10.58 | 13.10 | 1 | 0.38 | 1.15 | 0.42 | 1.11 | 24 | ||||||||||||||||||||||||
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 |
(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 July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(9) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
(10) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
(11) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 171 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY MICRO CAP GROWTH FUND
Net Asset Value, Beginning of Period | Net Investment Loss(1) | 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 9-30-2017 (unaudited) | $ | 23.67 | $ | (0.14 | ) | $ | 1.41 | $ | 1.27 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2017 | 18.14 | (0.29 | ) | 6.14 | 5.85 | — | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.21 | (0.24 | ) | 1.33 | 1.09 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 17.20 | (0.47 | ) | 5.80 | 5.33 | — | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.58 | (0.23 | ) | 1.35 | 1.12 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 17.45 | (0.45 | ) | 5.90 | 5.45 | — | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.28 | (0.10 | ) | 1.45 | 1.35 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.53 | (0.23 | ) | 6.30 | 6.07 | — | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.43 | (0.08 | ) | 1.47 | 1.39 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.61 | (0.18 | ) | 6.32 | 6.14 | — | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
Year ended 3-31-2016 | 25.19 | (0.19 | ) | (5.49 | ) | (5.68 | ) | — | (0.90 | ) | (0.90 | ) | ||||||||||||||||
Year ended 3-31-2015(5) | 23.73 | (0.15 | ) | 3.01 | 2.86 | — | (1.40 | ) | (1.40 | ) | ||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.55 | (0.17 | ) | 1.41 | 1.24 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.08 | (0.34 | ) | 6.13 | 5.79 | — | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
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(7) | 17.77 | (0.10 | ) | 2.78 | 2.68 | — | — | — | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.47 | (0.13 | ) | 1.47 | 1.34 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.72 | (0.27 | ) | 6.34 | 6.07 | — | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
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 | — | — | — |
* | 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) | 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. |
.
172 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets | Ratio of Net Investment Loss to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 24.94 | 5.37 | % | $ | 80 | 1.64 | %(3) | -1.18 | %(3) | 10 | % | ||||||||||||
Year ended 3-31-2017 | 23.67 | 32.21 | 82 | 1.68 | -1.36 | 32 | ||||||||||||||||||
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 | ||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.30 | 4.91 | 1 | 2.57 | (3) | -2.11 | (3) | 10 | ||||||||||||||||
Year ended 3-31-2017 | 22.21 | 30.94 | 2 | 2.60 | -2.28 | 32 | ||||||||||||||||||
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 | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.70 | 4.96 | 7 | 2.41 | (3) | -1.95 | (3) | 10 | ||||||||||||||||
Year ended 3-31-2017 | 22.58 | 31.19 | 7 | 2.45 | -2.14 | 32 | ||||||||||||||||||
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 | ||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 25.63 | 5.56 | 72 | 1.27 | (3) | -0.81 | (3) | 10 | ||||||||||||||||
Year ended 3-31-2017 | 24.28 | 32.72 | 71 | 1.27 | -0.99 | 32 | ||||||||||||||||||
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 | ||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 25.82 | 5.69 | 3 | 1.09 | (3) | -0.62 | (3) | 10 | ||||||||||||||||
Year ended 3-31-2017 | 24.43 | 32.96 | 2 | 1.09 | -0.79 | 32 | ||||||||||||||||||
Year ended 3-31-2016 | 18.61 | -23.03 | 2 | 1.08 | -0.84 | 84 | ||||||||||||||||||
Year ended 3-31-2015(5) | 25.19 | 12.53 | 2 | 1.08 | (3) | -0.94 | (3) | 47 | (6) | |||||||||||||||
Class R Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.79 | 5.27 | 1 | 1.84 | (3) | -1.38 | (3) | 10 | ||||||||||||||||
Year ended 3-31-2017 | 23.55 | 31.99 | 1 | 1.85 | -1.57 | 32 | ||||||||||||||||||
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(7) | 20.45 | 15.08 | — | * | 1.89 | (3) | -1.84 | (3) | 51 | (8) | ||||||||||||||
Class Y Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 25.81 | 5.48 | 1 | 1.49 | (3) | -1.02 | (3) | 10 | ||||||||||||||||
Year ended 3-31-2017 | 24.47 | 32.39 | 1 | 1.51 | -1.20 | 32 | ||||||||||||||||||
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 |
(5) | For the period from July 31, 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) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
(8) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 173 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY MID CAP GROWTH FUND
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 20.81 | $ | (0.05 | ) | $ | 2.35 | $ | 2.30 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2017 | 18.96 | (0.08 | ) | 2.71 | 2.63 | — | (0.78 | ) | (0.78 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.02 | (0.11 | ) | 1.92 | 1.81 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 15.76 | (0.20 | ) | 2.24 | 2.04 | — | (0.78 | ) | (0.78 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.09 | (0.11 | ) | 2.03 | 1.92 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 16.69 | (0.20 | ) | 2.38 | 2.18 | — | (0.78 | ) | (0.78 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.34 | (0.05 | ) | 2.30 | 2.25 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.54 | (0.09 | ) | 2.67 | 2.58 | — | (0.78 | ) | (0.78 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.23 | (0.02 | ) | 2.51 | 2.49 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 20.15 | (0.03 | ) | 2.89 | 2.86 | — | (0.78 | ) | (0.78 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.35 | 0.00 | * | 2.52 | 2.52 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 20.22 | 0.00 | * | 2.91 | 2.91 | — | (0.78 | ) | (0.78 | ) | ||||||||||||||||||
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 R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.40 | (0.08 | ) | 2.30 | 2.22 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.65 | (0.14 | ) | 2.67 | 2.53 | — | (0.78 | ) | (0.78 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.66 | (0.05 | ) | 2.45 | 2.40 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 19.69 | (0.08 | ) | 2.83 | 2.75 | — | (0.78 | ) | (0.78 | ) | ||||||||||||||||||
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 | ) |
* | 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. |
.
174 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 23.11 | 11.05 | % | $ | 430 | 1.31 | %(4) | -0.43 | %(4) | 1.33 | %(4) | -0.45 | %(4) | 13 | % | ||||||||||||||||
Year ended 3-31-2017 | 20.81 | 13.99 | 428 | 1.31 | -0.39 | 1.35 | -0.43 | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.83 | 10.63 | 17 | 2.09 | (4) | -1.22 | (4) | — | — | 13 | ||||||||||||||||||||||
Year ended 3-31-2017 | 17.02 | 13.07 | 17 | 2.10 | -1.24 | — | — | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.01 | 10.67 | 209 | 2.03 | (4) | -1.16 | (4) | — | — | 13 | ||||||||||||||||||||||
Year ended 3-31-2017 | 18.09 | 13.19 | 213 | 2.04 | -1.16 | — | — | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.59 | 11.06 | 9 | 1.30 | (4) | -0.43 | (4) | 1.60 | (4) | -0.73 | (4) | 13 | ||||||||||||||||||||
Year ended 3-31-2017 | 20.34 | 14.04 | 9 | 1.30 | -0.47 | 1.65 | -0.82 | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.72 | 11.20 | 1,201 | 1.03 | (4) | -0.16 | (4) | — | — | 13 | ||||||||||||||||||||||
Year ended 3-31-2017 | 22.23 | 14.31 | 1,112 | 1.04 | -0.15 | — | — | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.87 | 11.32 | 136 | 0.88 | (4) | 0.01 | (4) | — | — | 13 | ||||||||||||||||||||||
Year ended 3-31-2017 | 22.35 | 14.51 | 65 | 0.87 | -0.02 | — | — | 14 | ||||||||||||||||||||||||
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 R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.62 | 10.88 | 51 | 1.63 | (4) | -0.76 | (4) | — | — | 13 | ||||||||||||||||||||||
Year ended 3-31-2017 | 20.40 | 13.68 | 55 | 1.62 | -0.75 | — | — | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.06 | 11.08 | 289 | 1.27 | (4) | -0.40 | (4) | — | — | 13 | ||||||||||||||||||||||
Year ended 3-31-2017 | 21.66 | 14.08 | 321 | 1.26 | -0.38 | — | — | 14 | ||||||||||||||||||||||||
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 |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
(7) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 175 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY MID CAP INCOME OPPORTUNITIES FUND
Net Asset | 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 9-30-2017 (unaudited) | $ | 12.68 | $ | 0.10 | $ | 0.27 | $ | 0.37 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | ||||||||||||
Year ended 3-31-2017 | 10.93 | 0.15 | 1.71 | 1.86 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 11.10 | 0.15 | (0.15 | ) | 0.00 | * | (0.15 | ) | (0.02 | ) | (0.17 | ) | ||||||||||||||||
Year ended 3-31-2015(4) | 10.00 | 0.10 | 1.05 | 1.15 | (0.05 | ) | — | * | (0.05 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.62 | 0.06 | 0.27 | 0.33 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 10.91 | 0.07 | 1.70 | 1.77 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 11.10 | 0.08 | (0.16 | ) | (0.08 | ) | (0.09 | ) | (0.02 | ) | (0.11 | ) | ||||||||||||||||
Year ended 3-31-2015(4) | 10.00 | 0.05 | 1.07 | 1.12 | (0.02 | ) | — | * | (0.02 | ) | ||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.68 | 0.12 | 0.27 | 0.39 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.93 | 0.18 | 1.70 | 1.88 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 11.11 | 0.16 | (0.16 | ) | 0.00 | * | (0.16 | ) | (0.02 | ) | (0.18 | ) | ||||||||||||||||
Year ended 3-31-2015(4) | 10.00 | 0.09 | 1.07 | 1.16 | (0.05 | ) | — | * | (0.05 | ) | ||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.70 | 0.12 | 0.27 | 0.39 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.94 | 0.19 | 1.72 | 1.91 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 11.11 | 0.19 | (0.16 | ) | 0.03 | (0.18 | ) | (0.02 | ) | (0.20 | ) | |||||||||||||||||
Year ended 3-31-2015(4) | 10.00 | 0.10 | 1.08 | 1.18 | (0.07 | ) | — | * | (0.07 | ) | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.70 | 0.14 | 0.26 | 0.40 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.94 | 0.20 | 1.71 | 1.91 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 11.11 | 0.19 | (0.16 | ) | 0.03 | (0.18 | ) | (0.02 | ) | (0.20 | ) | |||||||||||||||||
Year ended 3-31-2015(4) | 10.00 | 0.10 | 1.08 | 1.18 | (0.07 | ) | — | * | (0.07 | ) | ||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.65 | 0.08 | 0.28 | 0.36 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.92 | 0.12 | 1.69 | 1.81 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 11.10 | 0.11 | (0.16 | ) | (0.05 | ) | (0.11 | ) | (0.02 | ) | (0.13 | ) | ||||||||||||||||
Year ended 3-31-2015(4) | 10.00 | 0.06 | 1.07 | 1.13 | (0.03 | ) | — | * | (0.03 | ) | ||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.68 | 0.10 | 0.27 | 0.37 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 10.93 | 0.15 | 1.71 | 1.86 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 11.11 | 0.16 | (0.17 | ) | (0.01 | ) | (0.15 | ) | (0.02 | ) | (0.17 | ) | ||||||||||||||||
Year ended 3-31-2015(4) | 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. |
(4) | For the period from October 1, 2014 (commencement of operations of the class) through March 31, 2015. |
(5) | Annualized |
(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 1.16%. |
(9) | Ratio of expenses to average net assets excluding offering cost was 2.03%. |
(10) | Ratio of expenses to average net assets excluding offering cost was 1.88%. |
.
176 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 13.00 | 2.89 | % | $ | 102 | 1.35 | %(5) | 1.64 | %(5) | 1.42 | %(5) | 1.57 | %(5) | 25 | % | ||||||||||||||||
Year ended 3-31-2017 | 12.68 | 17.10 | 119 | 1.35 | 1.27 | 1.45 | 1.17 | 28 | ||||||||||||||||||||||||
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(4) | 11.10 | 11.56 | 43 | 1.35 | (5)(8) | 1.83 | (5) | 1.60 | (5) | 1.58 | (5) | 10 | (6) | |||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.95 | 2.61 | 13 | 2.07 | (5) | 0.92 | (5) | 2.18 | (5) | 0.81 | (5) | 25 | ||||||||||||||||||||
Year ended 3-31-2017 | 12.62 | 16.19 | 15 | 2.07 | 0.51 | 2.13 | 0.45 | 28 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 10.91 | -0.70 | 5 | 2.07 | (9) | 0.72 | 2.28 | 0.51 | 26 | |||||||||||||||||||||||
Year ended 3-31-2015(4) | 11.10 | 11.26 | 3 | 2.07 | (5)(10) | 0.98 | (5) | 2.22 | (5) | 0.83 | (5) | 10 | (6) | |||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.01 | 3.07 | 2 | 1.18 | (5) | 1.83 | (5) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.68 | 17.21 | 3 | 1.23 | 1.47 | — | — | 28 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 10.93 | 0.01 | 2 | 1.30 | (11) | 1.50 | 1.41 | 1.39 | 26 | |||||||||||||||||||||||
Year ended 3-31-2015(4) | 11.11 | 11.68 | 2 | 1.30 | (5)(12) | 1.70 | (5) | 1.42 | (5) | 1.58 | (5) | 10 | (6) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.02 | 3.05 | 160 | 1.05 | (5) | 1.94 | (5) | 1.12 | (5) | 1.87 | (5) | 25 | ||||||||||||||||||||
Year ended 3-31-2017 | 12.70 | 17.49 | 174 | 1.04 | 1.49 | 1.11 | 1.42 | 28 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 10.94 | 0.28 | 8 | 1.05 | (13) | 1.76 | 1.30 | 1.51 | 26 | |||||||||||||||||||||||
Year ended 3-31-2015(4) | 11.11 | 11.81 | 9 | 1.05 | (5)(14) | 1.97 | (5) | 1.32 | (5) | 1.70 | (5) | 10 | (6) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.03 | 3.20 | 52 | 0.95 | (5) | 2.19 | (5) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.70 | 17.54 | 5 | 0.98 | 1.65 | — | — | 28 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 10.94 | 0.28 | 3 | 1.05 | (15) | 1.75 | 1.16 | 1.64 | 26 | |||||||||||||||||||||||
Year ended 3-31-2015(4) | 11.11 | 11.81 | 3 | 1.05 | (5)(16) | 1.97 | (5) | 1.18 | (5) | 1.84 | (5) | 10 | (6) | |||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 12.99 | 2.83 | 3 | 1.67 | (5) | 1.34 | (5) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2017 | 12.65 | 16.58 | 3 | 1.73 | 0.97 | — | — | 28 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 10.92 | -0.41 | 2 | 1.80 | (17) | 1.00 | 1.91 | 0.89 | 26 | |||||||||||||||||||||||
Year ended 3-31-2015(4) | 11.10 | 11.38 | 2 | 1.80 | (5)(18) | 1.20 | (5) | 1.92 | (5) | 1.08 | (5) | 10 | (6) | |||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 13.00 | 2.98 | 6 | 1.35 | (5) | 1.60 | (5) | 1.38 | (5) | 1.57 | (5) | 25 | ||||||||||||||||||||
Year ended 3-31-2017 | 12.68 | 17.10 | 8 | 1.35 | 1.28 | 1.37 | 1.26 | 28 | ||||||||||||||||||||||||
Year ended 3-31-2016 | 10.93 | -0.03 | 5 | 1.35 | (19) | 1.46 | 1.58 | 1.23 | 26 | |||||||||||||||||||||||
Year ended 3-31-2015(4) | 11.11 | 11.66 | 4 | 1.35 | (5)(20) | 1.73 | (5) | 1.57 | (5) | 1.51 | (5) | 10 | (6) |
(11) | Ratio of expenses to average net assets excluding offering cost was 1.26%. |
(12) | Ratio of expenses to average net assets excluding offering cost was 1.11%. |
(13) | Ratio of expenses to average net assets excluding offering cost was 1.01%. |
(14) | Ratio of expenses to average net assets excluding offering cost was 0.86%. |
(15) | Ratio of expenses to average net assets excluding offering cost was 1.76%. |
(16) | Ratio of expenses to average net assets excluding offering cost was 1.61%. |
(17) | Ratio of expenses to average net assets excluding offering cost was 1.01%. |
(18) | Ratio of expenses to average net assets excluding offering cost was 0.86%. |
(19) | Ratio of expenses to average net assets excluding offering cost was 1.31%. |
(20) | Ratio of expenses to average net assets excluding offering cost was 1.16%. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 177 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY MUNICIPAL BOND FUND
Net Asset Value, Beginning of Period | Net Investment Income(1) | Net Realized | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 11.82 | $ | 0.17 | $ | 0.11 | $ | 0.28 | $ | (0.16 | ) | $ | — | $ | (0.16 | ) | ||||||||||||
Year ended 3-31-2017 | 12.13 | 0.28 | (0.31 | ) | (0.03 | ) | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.82 | 0.12 | 0.12 | 0.24 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 12.13 | 0.19 | (0.31 | ) | (0.12 | ) | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.82 | 0.12 | 0.12 | 0.24 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 12.13 | 0.19 | (0.31 | ) | (0.12 | ) | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.82 | 0.18 | 0.12 | 0.30 | (0.18 | )�� | — | (0.18 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 12.13 | 0.31 | (0.32 | ) | (0.01 | ) | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 11.90 | 0.09 | 0.04 | 0.13 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.82 | 0.16 | 0.12 | 0.28 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 12.13 | 0.28 | (0.31 | ) | (0.03 | ) | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
.
178 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 11.94 | 2.40 | % | $ | 62 | 1.01 | %(4) | 2.78 | %(4) | — | % | — | % | — | % | ||||||||||||||||
Year ended 3-31-2017 | 11.82 | -0.26 | 68 | 0.98 | 2.28 | — | — | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.94 | 2.02 | 2 | 1.77 | (4) | 2.02 | (4) | — | — | — | ||||||||||||||||||||||
Year ended 3-31-2017 | 11.82 | -1.02 | 2 | 1.74 | 1.56 | — | — | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.94 | 2.02 | 21 | 1.78 | (4) | 2.01 | (4) | — | — | — | ||||||||||||||||||||||
Year ended 3-31-2017 | 11.82 | -1.01 | 25 | 1.73 | 1.57 | — | — | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.94 | 2.51 | 91 | 0.83 | (4) | 2.96 | (4) | — | — | — | ||||||||||||||||||||||
Year ended 3-31-2017 | 11.82 | -0.08 | 96 | 0.79 | 2.56 | — | — | 14 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 11.94 | 1.09 | — | * | 0.71 | (4) | 3.10 | (4) | — | — | — | (7) | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 11.94 | 2.39 | 1 | 1.03 | (4)(8) | 2.76 | (4) | 1.07 | (4) | 2.72 | (4) | — | ||||||||||||||||||||
Year ended 3-31-2017 | 11.82 | -0.26 | 1 | 0.98 | 2.33 | 1.03 | 2.28 | 14 | ||||||||||||||||||||||||
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 |
(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 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(7) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
(8) | Annualized expense ratio based on the period excluding reorganization expenses was 1.01%. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 179 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY MUNICIPAL HIGH INCOME FUND
Net Asset | 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 9-30-2017 (unaudited) | $ | 5.09 | $ | 0.09 | $ | 0.02 | $ | 0.11 | $ | (0.10 | ) | $ | — | $ | (0.10 | ) | ||||||||||||
Year ended 3-31-2017 | 5.28 | 0.23 | (0.19 | ) | 0.04 | (0.23 | ) | — | (0.23 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 5.09 | 0.07 | 0.02 | 0.09 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 5.28 | 0.19 | (0.19 | ) | 0.00 | * | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 5.09 | 0.08 | 0.01 | 0.09 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 5.28 | 0.19 | (0.19 | ) | 0.00 | * | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 5.09 | 0.10 | 0.01 | 0.11 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 5.28 | 0.24 | (0.19 | ) | 0.05 | (0.24 | ) | — | (0.24 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 5.11 | 0.04 | (0.01 | ) | 0.03 | (0.04 | ) | — | (0.04 | ) | ||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 5.09 | 0.09 | 0.02 | 0.11 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 5.28 | 0.23 | (0.19 | ) | 0.04 | (0.23 | ) | — | (0.23 | ) | ||||||||||||||||||
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 | ) |
* | 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. |
.
180 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 5.10 | 2.08 | % | $ | 201 | 0.88 | %(4) | 3.67 | %(4) | 0.91 | %(4) | 3.64 | %(4) | 1 | % | ||||||||||||||||
Year ended 3-31-2017 | 5.09 | 0.65 | 235 | 0.87 | 4.27 | — | — | 8 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 5.10 | 1.73 | 10 | 1.62 | (4) | 2.91 | (4) | 1.69 | (4) | 2.84 | (4) | 1 | ||||||||||||||||||||
Year ended 3-31-2017 | 5.09 | -0.11 | 11 | 1.62 | 3.52 | 1.63 | 3.51 | 8 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 5.10 | 1.75 | 160 | 1.58 | (4) | 2.96 | (4) | 1.65 | (4) | 2.89 | (4) | 1 | ||||||||||||||||||||
Year ended 3-31-2017 | 5.09 | -0.07 | 182 | 1.58 | 3.56 | 1.60 | 3.54 | 8 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 5.10 | 2.17 | 534 | 0.68 | (4) | 3.85 | (4) | 0.75 | (4) | 3.78 | (4) | 1 | ||||||||||||||||||||
Year ended 3-31-2017 | 5.09 | 0.84 | 617 | 0.68 | 4.46 | 0.69 | 4.45 | 8 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 5.10 | 0.63 | — | * | 0.58 | (4) | 3.27 | (4) | 0.61 | (4) | 3.24 | (4) | 1 | (7) | ||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 5.10 | 2.08 | 14 | 0.88 | (4) | 3.64 | (4) | 1.01 | (4) | 3.51 | (4) | 1 | ||||||||||||||||||||
Year ended 3-31-2017 | 5.09 | 0.65 | 15 | 0.86 | 4.28 | 0.95 | 4.19 | 8 | ||||||||||||||||||||||||
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 |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(7) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 181 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY SMALL CAP CORE 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 9-30-2017 (unaudited) | $ | 17.66 | $ | 0.01 | $ | 1.00 | $ | 1.01 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2017 | 14.38 | (0.05 | ) | 4.14 | 4.09 | — | (0.81 | ) | (0.81 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(4) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.45 | (0.05 | ) | 0.79 | 0.74 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 11.92 | (0.17 | ) | 3.43 | 3.26 | — | (0.73 | ) | (0.73 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.39 | (0.04 | ) | 0.86 | 0.82 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 12.64 | (0.14 | ) | 3.64 | 3.50 | — | (0.75 | ) | (0.75 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares(11) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.32 | 0.04 | 1.02 | 1.06 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 14.87 | 0.00 | * | 4.30 | 4.30 | — | (0.85 | ) | (0.85 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.03 | 0.05 | 1.07 | 1.12 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 15.42 | 0.01 | 4.46 | 4.47 | — | (0.86 | ) | (0.86 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.17 | 0.08 | 1.06 | 1.14 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 15.52 | 0.04 | 4.49 | 4.53 | — | (0.88 | ) | (0.88 | ) | |||||||||||||||||||
Year ended 3-31-2016 | 18.56 | 0.02 | (0.91 | ) | (0.89 | ) | — | (2.15 | ) | (2.15 | ) | |||||||||||||||||
Year ended 3-31-2015(5) | 18.96 | 0.08 | 1.36 | 1.44 | — | (1.84 | ) | (1.84 | ) | |||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.58 | (0.02 | ) | 1.00 | 0.98 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 14.33 | (0.09 | ) | 4.13 | 4.04 | — | (0.79 | ) | (0.79 | ) | ||||||||||||||||||
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)(7) | 15.24 | (0.02 | ) | 2.01 | 1.99 | — | — | — | ||||||||||||||||||||
Class T Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(9) | 17.97 | (0.02 | ) | 0.73 | 0.71 | — | — | — | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.51 | 0.03 | 1.03 | 1.06 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 15.03 | (0.03 | ) | 4.34 | 4.31 | — | (0.83 | ) | (0.83 | ) | ||||||||||||||||||
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 | ) |
* | 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) | 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. |
.
182 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 18.67 | 5.72 | % | $ | 195 | 1.47 | %(3) | 0.16 | %(3) | 51 | % | ||||||||||||
Year ended 3-31-2017 | 17.66 | 28.52 | 200 | 1.50 | -0.28 | 133 | ||||||||||||||||||
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 | ||||||||||||||||||
Class B Shares(4) |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.19 | 5.12 | 3 | 2.45 | (3) | -0.75 | (3) | 51 | ||||||||||||||||
Year ended 3-31-2017 | 14.45 | 27.39 | 5 | 2.44 | -1.26 | 133 | ||||||||||||||||||
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 | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.21 | 5.33 | 35 | 2.16 | (3) | -0.53 | (3) | 51 | ||||||||||||||||
Year ended 3-31-2017 | 15.39 | 27.72 | 33 | 2.17 | -0.99 | 133 | ||||||||||||||||||
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 | ||||||||||||||||||
Class E Shares(11) |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.38 | 5.84 | — | * | 1.19 | (3) | 0.42 | (3) | 51 | |||||||||||||||
Year ended 3-31-2017 | 18.32 | 28.97 | — | * | 1.21 | 0.00 | 133 | |||||||||||||||||
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 | |||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.15 | 5.89 | 306 | 1.11 | (3) | 0.48 | (3) | 51 | ||||||||||||||||
Year ended 3-31-2017 | 19.03 | 29.05 | 253 | 1.10 | 0.03 | 133 | ||||||||||||||||||
Year ended 3-31-2016 | 15.42 | -4.71 | 25 | 1.12 | 0.00 | 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 | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.31 | 5.95 | 48 | 0.94 | (3) | 0.83 | (3) | 51 | ||||||||||||||||
Year ended 3-31-2017 | 19.17 | 29.25 | 9 | 0.95 | 0.22 | 133 | ||||||||||||||||||
Year ended 3-31-2016 | 15.52 | -4.52 | 4 | 0.96 | 0.13 | 135 | ||||||||||||||||||
Year ended 3-31-2015(5) | 18.56 | 8.17 | 3 | 0.96 | (3) | 0.70 | (3) | 106 | (6) | |||||||||||||||
Class R Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.56 | 5.63 | 10 | 1.68 | (3) | -0.17 | (3) | 51 | ||||||||||||||||
Year ended 3-31-2017 | 17.58 | 28.27 | 6 | 1.69 | -0.51 | 133 | ||||||||||||||||||
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(7) | 17.23 | 13.06 | — | * | 1.68 | (3) | -0.44 | (3) | 52 | (8) | ||||||||||||||
Class T Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(9) | 18.68 | 3.95 | — | * | 1.18 | (3) | -0.49 | (3) | 51 | (10) | ||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 19.57 | 5.73 | 18 | 1.36 | (3) | 0.29 | (3) | 51 | ||||||||||||||||
Year ended 3-31-2017 | 18.51 | 28.74 | 22 | 1.35 | -0.20 | 133 | ||||||||||||||||||
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 |
(5) | For the period from July 31, 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) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
(8) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
(9) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(10) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
(11) | Class is closed to investment. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 183 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY SMALL CAP GROWTH FUND
Net Asset Beginning of | 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 9-30-2017 (unaudited) | $ | 17.23 | $ | (0.08 | ) | $ | 1.72 | $ | 1.64 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2017 | 14.81 | (0.13 | ) | 3.58 | 3.45 | — | (1.03 | ) | (1.03 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited | 13.11 | (0.12 | ) | 1.31 | 1.19 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 11.57 | (0.21 | ) | 2.78 | 2.57 | — | (1.03 | ) | (1.03 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.28 | (0.12 | ) | 1.42 | 1.30 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 12.50 | (0.20 | ) | 3.01 | 2.81 | — | (1.03 | ) | (1.03 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 17.09 | (0.09 | ) | 1.71 | 1.62 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 14.70 | (0.14 | ) | 3.56 | 3.42 | — | (1.03 | ) | (1.03 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.96 | (0.07 | ) | 2.19 | 2.12 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.57 | (0.10 | ) | 4.52 | 4.42 | — | (1.03 | ) | (1.03 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.06 | (0.06 | ) | 2.21 | 2.15 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.62 | (0.07 | ) | 4.54 | 4.47 | — | (1.03 | ) | (1.03 | ) | ||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 16.97 | (0.11 | ) | 1.69 | 1.58 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 14.63 | (0.17 | ) | 3.54 | 3.37 | — | (1.03 | ) | (1.03 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class T Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(8) | 18.21 | (0.03 | ) | 0.69 | 0.66 | — | — | — | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.85 | (0.10 | ) | 2.09 | 1.99 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 17.72 | (0.14 | ) | 4.30 | 4.16 | — | (1.03 | ) | (1.03 | ) | ||||||||||||||||||
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 | ) |
* | 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. |
(4) | Annualized. |
.
184 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 18.87 | 9.52 | % | $ | 254 | 1.38 | %(4) | -0.95 | %(4) | — | % | — | % | 20 | % | ||||||||||||||||
Year ended 3-31-2017 | 17.23 | 23.58 | 236 | 1.41 | -0.81 | — | — | 53 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 14.30 | 9.08 | 8 | 2.22 | (4) | -1.79 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 13.11 | 22.55 | 8 | 2.24 | -1.66 | — | — | 53 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 15.58 | 9.10 | 180 | 2.05 | (4) | -1.62 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 14.28 | 22.80 | 176 | 2.07 | -1.49 | — | — | 53 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.71 | 9.48 | 9 | 1.39 | (4) | -0.96 | (4) | 1.63 | (4) | -1.20 | (4) | 20 | ||||||||||||||||||||
Year ended 3-31-2017 | 17.09 | 23.55 | 8 | 1.43 | -0.85 | 1.71 | -1.13 | 53 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.08 | 9.65 | 376 | 1.08 | (4) | -0.64 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 21.96 | 24.03 | 313 | 1.07 | -0.51 | — | — | 53 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 24.21 | 9.75 | 110 | 0.92 | (4) | -0.48 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 22.06 | 24.24 | 69 | 0.91 | -0.34 | — | — | 53 | ||||||||||||||||||||||||
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 R Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 18.55 | 9.31 | 51 | 1.67 | (4) | -1.23 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 16.97 | 23.32 | 48 | 1.66 | -1.08 | — | — | 53 | ||||||||||||||||||||||||
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 | (9) | |||||||||||||||||||||||
Class T Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(8) | 18.87 | 3.62 | — | * | 1.23 | (4) | -0.79 | (4) | — | — | 20 | |||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.84 | 9.55 | 134 | 1.32 | (4) | -0.89 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2017 | 20.85 | 23.71 | 135 | 1.31 | -0.71 | — | — | 53 | ||||||||||||||||||||||||
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 |
(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. |
(8) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(9) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 185 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY TAX-MANAGED EQUITY FUND
Net Asset | 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 9-30-2017 (unaudited) | $ | 21.00 | $ | 0.00 | * | $ | 2.09 | $ | 2.09 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2017 | 18.68 | (0.07 | ) | 2.39 | 2.32 | — | — | — | ||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.13 | (0.08 | ) | 2.00 | 1.92 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.03 | (0.19 | ) | 2.29 | 2.10 | — | — | — | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 20.06 | (0.09 | ) | 1.99 | 1.90 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 17.98 | (0.20 | ) | 2.28 | 2.08 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.22 | 0.02 | 2.11 | 2.13 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 18.83 | (0.01 | ) | 2.40 | 2.39 | — | — | — | ||||||||||||||||||||
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 | ) | |||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.01 | 0.00 | * | 1.35 | 1.35 | — | — | — | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.04 | 0.00 | * | 2.09 | 2.09 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2017 | 18.71 | (0.06 | ) | 2.39 | 2.33 | — | — | — | ||||||||||||||||||||
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 | ) |
* | 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. |
.
186 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets Including Expense Waiver | Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3) | Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 23.09 | 9.95 | % | $ | 43 | 1.21 | %(4) | -0.04 | %(4) | — | % | — | % | 31 | % | ||||||||||||||||
Year ended 3-31-2017 | 21.00 | 12.42 | 38 | 1.20 | -0.35 | — | — | 46 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.05 | 9.54 | 2 | 1.91 | (4) | -0.74 | (4) | — | — | 31 | ||||||||||||||||||||||
Year ended 3-31-2017 | 20.13 | 11.65 | 1 | 1.91 | -1.03 | — | — | 46 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.96 | 9.52 | 6 | 1.99 | (4) | -0.83 | (4) | — | — | 31 | ||||||||||||||||||||||
Year ended 3-31-2017 | 20.06 | 11.57 | 6 | 1.96 | -1.08 | — | — | 46 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.35 | 10.04 | 78 | 1.01 | (4) | 0.16 | (4) | — | — | 31 | ||||||||||||||||||||||
Year ended 3-31-2017 | 21.22 | 12.69 | 72 | 0.96 | -0.04 | — | — | 46 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited)(6) | 23.36 | 6.13 | — | * | 0.85 | (4) | 0.02 | (4) | — | — | 31 | (7) | ||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.13 | 9.93 | 1 | 1.21 | (4) | -0.04 | (4) | 1.24 | (4) | -0.07 | (4) | 31 | ||||||||||||||||||||
Year ended 3-31-2017 | 21.04 | 12.45 | 1 | 1.20 | -0.31 | 1.21 | -0.32 | 46 | ||||||||||||||||||||||||
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 |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017. |
(7) | Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 187 |
Table of Contents
FINANCIAL HIGHLIGHTS | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY VALUE FUND
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 22.69 | $ | 0.31 | $ | 0.42 | $ | 0.73 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | ||||||||||||
Year ended 3-31-2017 | 19.72 | 0.20 | 3.25 | 3.45 | (0.33 | ) | (0.15 | ) | (0.48 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class B Shares(4) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.12 | 0.16 | 0.42 | 0.58 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 18.39 | 0.00 | * | 3.02 | 3.02 | (0.14 | ) | (0.15 | ) | (0.29 | ) | |||||||||||||||||
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 | — | — | * | — | * | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.92 | 0.22 | 0.41 | 0.63 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2017 | 19.07 | 0.08 | 3.13 | 3.21 | (0.21 | ) | (0.15 | ) | (0.36 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class E Shares(5) |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.79 | 0.34 | 0.42 | 0.76 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 19.81 | 0.27 | 3.24 | 3.51 | (0.38 | ) | (0.15 | ) | (0.53 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.80 | 0.35 | 0.42 | 0.77 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 19.81 | 0.31 | 3.23 | 3.54 | (0.40 | ) | (0.15 | ) | (0.55 | ) | ||||||||||||||||||
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 | ) | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.86 | 0.42 | 0.37 | 0.79 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 19.87 | 0.33 | 3.25 | 3.58 | (0.44 | ) | (0.15 | ) | (0.59 | ) | ||||||||||||||||||
Year ended 3-31-2016 | 23.56 | 0.25 | (1.15 | ) | (0.90 | ) | (0.06 | ) | (2.73 | ) | (2.79 | ) | ||||||||||||||||
Year ended 3-31-2015(6) | 24.96 | 0.18 | 0.25 | 0.43 | (0.10 | ) | (1.73 | ) | (1.83 | ) | ||||||||||||||||||
Class R Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.66 | 0.28 | 0.42 | 0.70 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 19.70 | 0.17 | 3.23 | 3.40 | (0.29 | ) | (0.15 | ) | (0.44 | ) | ||||||||||||||||||
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(8) | 18.17 | 0.04 | 2.07 | 2.11 | — | — | — | |||||||||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.73 | 0.30 | 0.43 | 0.73 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||
Year ended 3-31-2017 | 19.77 | 0.26 | 3.21 | 3.47 | (0.36 | ) | (0.15 | ) | (0.51 | ) | ||||||||||||||||||
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 | ) |
* | 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) | 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. |
.
188 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||
Class A Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | $ | 23.38 | 3.21 | % | $ | 96 | 1.30 | %(3) | 2.71 | %(3) | 31 | % | ||||||||||||
Year ended 3-31-2017 | 22.69 | 17.76 | 103 | 1.33 | 0.99 | 53 | ||||||||||||||||||
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 | ||||||||||||||||||
Class B Shares(4) |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 21.70 | 2.75 | 2 | 2.21 | (3) | 1.54 | (3) | 31 | ||||||||||||||||
Year ended 3-31-2017 | 21.12 | 16.57 | 3 | 2.36 | — | 53 | ||||||||||||||||||
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 | ||||||||||||||||||
Class C Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 22.55 | 2.87 | 18 | 1.95 | (3) | 2.00 | (3) | 31 | ||||||||||||||||
Year ended 3-31-2017 | 21.92 | 17.02 | 20 | 1.97 | 0.39 | 53 | ||||||||||||||||||
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 | ||||||||||||||||||
Class E Shares(5) |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.47 | 3.33 | — | * | 1.06 | (3) | 2.94 | (3) | 31 | |||||||||||||||
Year ended 3-31-2017 | 22.79 | 18.03 | — | * | 1.08 | 1.29 | 53 | |||||||||||||||||
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 | |||||||||||||||||
Class I Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.47 | 3.37 | 179 | 0.97 | (3) | 3.04 | (3) | 31 | ||||||||||||||||
Year ended 3-31-2017 | 22.80 | 18.18 | 186 | 0.97 | 1.44 | 53 | ||||||||||||||||||
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 | ||||||||||||||||||
Class N Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.53 | 3.48 | 163 | 0.80 | (3) | 3.63 | (3) | 31 | ||||||||||||||||
Year ended 3-31-2017 | 22.86 | 18.32 | 9 | 0.82 | 1.55 | 53 | ||||||||||||||||||
Year ended 3-31-2016 | 19.87 | -4.12 | 2 | 0.81 | 1.14 | 55 | ||||||||||||||||||
Year ended 3-31-2015(6) | 23.56 | 1.72 | 1 | 0.79 | (3) | 1.11 | (3) | 82 | (7) | |||||||||||||||
Class R Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.35 | 3.11 | — | * | 1.57 | (3) | 2.44 | (3) | 31 | |||||||||||||||
Year ended 3-31-2017 | 22.66 | 17.45 | — | * | 1.57 | 0.80 | 53 | |||||||||||||||||
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(8) | 20.28 | 11.61 | — | * | 1.55 | (3) | 0.73 | (3) | 57 | (9) | ||||||||||||||
Class Y Shares |
| |||||||||||||||||||||||
Six-month period ended 9-30-2017 (unaudited) | 23.42 | 3.21 | 1 | 1.28 | (3) | 2.62 | (3) | 31 | ||||||||||||||||
Year ended 3-31-2017 | 22.73 | 17.81 | 1 | 1.21 | 1.24 | 53 | ||||||||||||||||||
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 |
(5) | Class share is closed to investment. |
(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. |
(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. |
See Accompanying Notes to Financial Statements.
2017 | SEMIANNUAL REPORT | 189 |
Table of Contents
NOTES TO FINANCIAL STATMENTS | IVY FUNDS |
SEPTEMBER 30, 2017 (UNAUDITED)
1. | ORGANIZATION |
Ivy Funds, a Delaware statutory trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Ivy Advantus 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 Government Money Market 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 Municipal Bond Fund, Ivy Municipal High Income Fund, Ivy Small Cap Core Fund, Ivy Small Cap Growth 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 Government Money Market Fund. Class C shares of Ivy Government 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 N, Class R, Class T 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 Core Fund and Ivy Value Fund. Class A, Class E and Class T 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 N, Class R and Class Y shares are sold without either a front-end sales charge or a CDSC. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Net investment income, net assets and 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, T and Y have a distribution and service plan. Class I shares and Class N 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.
190 | SEMIANNUAL REPORT | 2017 |
Table of Contents
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.
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 or 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
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based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity.
Interest Only Obligations. These securities entitle the owner to receive only the interest portion from a bond, Treasury note or pool of mortgages. These securities are generally created by a third party separating a bond or pool of mortgages into distinct interest-only and principal-only securities. As the principal (par) amount of a bond or pool of mortgages is paid down, the amount of interest income earned by the owner will decline as well.
Loans. Certain Funds may invest in loans, the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates, 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.
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
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course of business, the Trust may also enter into contracts that provide general indemnification. The Trust’s maximum exposure under these arrangements is unknown and is dependent on future claims that may be made against the Trust. The risk of material loss from such claims is considered remote.
Basis of Preparation. Each Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). The accompanying financial statements were prepared in accordance with U.S. GAAP, including but not limited to ASC 946. U.S. GAAP requires the use of estimates made by management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity.
Subsequent Events. The Board of Trustees of the Waddell & Reed Advisors Funds (“WRA Funds”) approved a Reorganization Plan, in which each WRA Fund has been reorganized into a corresponding fund within Ivy Funds, a trust whose investment advisor is IICO, an affiliate of Waddell & Reed Investment Management Company (“WRIMCO”). This means that the corresponding fund within Ivy Funds received all of the assets and liabilities of the corresponding WRA Fund in exchange for shares of the Ivy Fund. Each WRA Fund, in turn, distributed those Ivy Fund shares to its shareholders in liquidation and shareholders of a WRA Fund became shareholders of the corresponding Ivy Fund. Under the Reorganization Plan, each WRA Fund was reorganized into the Ivy Fund listed directly opposite such WRA Fund in the table below.
WRA Funds | Ivy Funds | |
WRA Bond Fund | Ivy Bond Fund | |
WRA Core Investment Fund | Ivy Core Equity Fund | |
WRA Dividend Opportunities Fund | Ivy Dividend Opportunities Fund | |
WRA Global Bond Fund | Ivy Global Bond Fund | |
WRA Government Securities Fund | Ivy Government Securities Fund | |
WRA Municipal Bond Fund | Ivy Municipal Bond Fund | |
WRA Tax-Managed Equity Fund | Ivy Tax-Managed Equity Fund | |
WRA Value Fund | Ivy Value Fund |
In connection with the Reorganization, the Ivy Funds organized the Ivy Bond Fund and Ivy Government Securities Fund (the “Shell Ivy Funds”) which had no assets or liabilities. Each Shell Ivy Fund has been created in connection with the Reorganization Plan to continue the business of its corresponding WRA Fund and has identical investment objectives, principal investment strategies and fundamental investment restrictions as its respective corresponding WRA Fund. The Shell Ivy Funds commenced operations on the date of the Reorganization. The Reorganization took place on October 16, 2017.
On November 14, 2017, the Board of Trustees of the WRA Funds adopted a resolution in which the WRA Funds will be reorganized into a corresponding series of the Ivy Funds, an affiliated investment company, as shown in the table below. This means that the corresponding fund within Ivy Funds will receive all of the assets and liabilities of the corresponding WRA Fund in exchange for shares of the Ivy Fund. Each WRA Fund, in turn, will distribute those Ivy Fund shares to its shareholders in liquidation and shareholders of a WRA Fund will become shareholders of the corresponding Ivy Fund. Under the Reorganization Plan, each WRA Fund will be reorganized into the Ivy Fund listed directly opposite such WRA Fund in the table below.
WRA Funds | Ivy Funds | |
WRA Global Growth Fund | Ivy Global Growth Fund | |
WRA High Income Fund | Ivy High Income Fund | |
WRA Municipal High Income Fund | Ivy Municipal High Income Fund | |
WRA New Concepts Fund | Ivy Mid Cap Growth Fund | |
WRA Small Cap Growth Fund | Ivy Small Cap Growth Fund | |
WRA Vanguard Fund | Ivy Large Cap Growth Fund |
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.
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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 Government 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 Government 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.
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.
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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 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.
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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.
Overdraft due to custodian. Due to the short-term nature of overdraft due to custodian, the carrying value approximates fair value and the liability is categorized as Level 2 in the fair value hierarchy.
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 affiliated securities, respectively. Additionally, the net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of September 30, 2017, 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
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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 European Opportunities Fund, Ivy Global Bond Fund, Ivy Global Equity Income 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 Advantus Bond Fund, Ivy Emerging Markets Equity Fund, Ivy Municipal Bond Fund, Ivy Municipal High Income Fund and Ivy Value 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 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 Mid Cap Growth Fund, Ivy Small 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.
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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 Emerging Markets Equity Fund, Ivy Small Cap Growth Fund and Ivy Value 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.
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, 2017:
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) | $ | 251 | $ | — | $ | 251 | $ | — | $ | (251 | ) | $ | — | $ | — | |||||||||||||
Ivy Global Equity Income Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | $ | 249 | $ | — | $ | 249 | $ | (249 | ) | $ | — | $ | — | $ | — | |||||||||||||
Ivy Global Income Allocation Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | $ | 33 | $ | — | $ | 33 | $ | (33 | ) | $ | — | $ | — | $ | — | |||||||||||||
Ivy High Income Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts(1) | $ | 581 | $ | — | $ | 581 | $ | (210 | ) | $ | — | $ | (371 | ) | $ | — |
198 | SEMIANNUAL REPORT | 2017 |
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Gross Amounts Not Offset on the Statement of Assets and Liabilities | ||||||||||||||||||||||||||||
Fund | Gross Amounts of Recognized Assets | Gross Amounts Offset on the Statement of Assets and Liabilities | Net Amounts of Assets Presented on the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Non-Cash Collateral Received | Cash Collateral Received | Net Amount Receivable | |||||||||||||||||||||
Ivy International Core Equity Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | $ | 342 | $ | — | $ | 342 | $ | (342 | ) | $ | — | $ | — | $ | — | |||||||||||||
Ivy Mid Cap Growth Fund | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value* | $ | 2,244 | $ | — | $ | 2,244 | $ | (49 | ) | $ | — | $ | — | $ | 2,195 | |||||||||||||
Ivy Small Cap Growth Fund | ||||||||||||||||||||||||||||
Swap agreements, at value | $ | 632 | $ | — | $ | 632 | $ | — | $ | (422 | ) | $ | — | $ | 210 | |||||||||||||
Ivy Value Fund | ||||||||||||||||||||||||||||
Swap agreements, at value | $ | 142 | $ | — | $ | 142 | $ | — | $ | — | $ | — | $ | 142 |
* | 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. |
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 European Opportunities Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts(1) | $ | 781 | $ | — | $ | 781 | $ | — | $ | — | $ | (781 | ) | $ | — | |||||||||||||
Ivy Global Bond Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts(1) | $ | 79 | $ | — | $ | 79 | $ | — | $ | — | $ | — | $ | 79 | ||||||||||||||
Ivy Global Equity Income Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts(1) | $ | 1,571 | $ | — | $ | 1,571 | $ | (249 | ) | $ | (1,322 | ) | $ | — | $ | — | ||||||||||||
Ivy Global Income Allocation Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts(1) | $ | 580 | $ | — | $ | 580 | $ | (33 | ) | $ | (427 | ) | $ | — | $ | 120 | ||||||||||||
Ivy High Income Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts(1) | $ | 342 | $ | — | $ | 342 | $ | (210 | ) | $ | — | $ | (132 | ) | $ | — |
2017 | SEMIANNUAL REPORT | 199 |
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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 International Core Equity Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | $ | 1,444 | $ | — | $ | 1,444 | $ | (342 | ) | $ | (1,102 | ) | $ | — | $ | — | ||||||||||||
Ivy Mid Cap Growth Fund | ||||||||||||||||||||||||||||
Written options at value | $ | 49 | $ | — | $ | 49 | $ | (49 | ) | $ | — | $ | — | $ | — |
(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. |
Additional Disclosure Related to Derivative Instruments
Fair values of derivative instruments as of September 30, 2017:
Assets | Liabilities | |||||||||||||||||
Fund | Type of Risk Exposure | Statement of Assets & Liabilities Location | Value | Statement of Assets & Liabilities Location | Value | |||||||||||||
Ivy Advantus Bond Fund | Interest rate | Unrealized appreciation on futures contracts* | $ | 328 | Unrealized depreciation on futures contracts* | $ | 337 | |||||||||||
Ivy Cundill Global Value Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 245 | — | ||||||||||||||
Ivy European Opportunities Fund | Foreign currency | — | Unrealized depreciation on forward foreign currency contracts | 465 | ||||||||||||||
Ivy Global Equity Income Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 249 | Unrealized depreciation on forward foreign currency contracts | 546 | |||||||||||||
Ivy Global Income Allocation Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 33 | Unrealized depreciation on forward foreign currency contracts | 444 | |||||||||||||
Ivy High Income Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 23 | Unrealized depreciation on forward foreign currency contracts | 154 | |||||||||||||
Ivy International Core Equity Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 342 | Unrealized depreciation on forward foreign currency contracts | 1,444 | |||||||||||||
Ivy Mid Cap Growth Fund | Equity | Investments in unaffiliated securities at value** | 3,546 | Written options at value | 966 | |||||||||||||
Ivy Municipal Bond Fund | Interest rate | Unrealized appreciation on futures contracts* | 81 | — | ||||||||||||||
Ivy Municipal High Income Fund | Interest rate | Unrealized appreciation on futures contracts* | 457 | — | ||||||||||||||
Ivy Small Cap Growth Fund | Equity | Swap agreements, at value | 632 | — | ||||||||||||||
Ivy Value Fund | Equity | Swap agreements, at value | 142 | Written options at value | 71 |
* | 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, 2017. |
** | Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments. |
200 | SEMIANNUAL REPORT | 2017 |
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Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 2017:
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 Advantus Bond Fund | Interest rate | $ | — | $ | — | $ | (143 | ) | $ | — | $ | — | $ | (143 | ) | |||||||||||
Ivy Cundill Global Value Fund | Foreign currency | — | — | — | — | (676 | ) | (676 | ) | |||||||||||||||||
Ivy Emerging Markets Equity Fund | Equity | — | 232 | 56 | — | — | 288 | |||||||||||||||||||
Ivy European Opportunities Fund | Foreign currency | — | — | — | — | (693 | ) | (693 | ) | |||||||||||||||||
Ivy Global Bond Fund | Foreign currency | — | — | — | — | (168 | ) | (168 | ) | |||||||||||||||||
Ivy Global Equity Income Fund | Foreign currency | — | — | — | — | (2,378 | ) | (2,378 | ) | |||||||||||||||||
Ivy Global Income Allocation Fund | Foreign currency | — | — | — | — | (3,450 | ) | (3,450 | ) | |||||||||||||||||
Ivy High Income Fund | Foreign currency | — | — | — | — | (2,652 | ) | (2,652 | ) | |||||||||||||||||
Ivy International Core Equity Fund | Foreign currency | — | — | — | — | 7,696 | 7,696 | |||||||||||||||||||
Ivy Mid Cap Growth Fund | Equity | 544 | — | — | (150 | ) | — | 394 | ||||||||||||||||||
Ivy Municipal Bond Fund | Interest rate | — | — | (237 | ) | — | — | (237 | ) | |||||||||||||||||
Ivy Municipal High Income Fund | Interest rate | — | — | (1,395 | ) | — | — | (1,395 | ) | |||||||||||||||||
Ivy Small Cap Growth Fund | Equity | (455 | ) | 5,000 | — | (240 | ) | — | 4,305 | |||||||||||||||||
Ivy Value Fund | Equity | — | — | 746 | 68 | — | 814 |
* | 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, 2017:
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 Advantus Bond Fund | Interest rate | $ | — | $ | — | $ | 31 | $ | — | $ | — | $ | 31 | |||||||||||||
Ivy Cundill Global Value Fund | Foreign currency | — | — | — | — | 377 | 377 | |||||||||||||||||||
Ivy European Opportunities Fund | Foreign currency | — | — | — | — | (588 | ) | (588 | ) | |||||||||||||||||
Ivy Global Bond Fund | Foreign currency | — | — | — | — | 29 | 29 | |||||||||||||||||||
Ivy Global Equity Income Fund | Foreign currency | — | — | — | — | (219 | ) | (219 | ) | |||||||||||||||||
Ivy Global Income Allocation Fund | Foreign currency | — | — | — | — | (563 | ) | (563 | ) | |||||||||||||||||
Ivy High Income Fund | Foreign currency | — | — | — | — | (233 | ) | (233 | ) | |||||||||||||||||
Ivy International Core Equity Fund | Foreign currency | — | — | — | — | 692 | 692 | |||||||||||||||||||
Ivy Mid Cap Growth Fund | Equity | 65 | — | — | (164 | ) | — | (99 | ) | |||||||||||||||||
Ivy Municipal Bond Fund | Interest rate | — | — | 104 | — | — | 104 | |||||||||||||||||||
Ivy Municipal High Income Fund | Interest rate | — | — | 457 | — | — | 457 | |||||||||||||||||||
Ivy Small Cap Growth Fund | Equity | — | 1,220 | — | — | — | 1,220 | |||||||||||||||||||
Ivy Value Fund | Equity | — | 142 | — | 51 | — | 193 |
* | Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments. |
During the period ended September 30, 2017, the average derivative volume was as follows:
Fund | Forward foreign currency contracts(1) | Long futures contracts(2) | Short futures contracts(2) | Swap agreements(3) | Purchased options(2) | Written options(2) | ||||||||||||||||||||||||
Ivy Advantus Bond Fund | $ | — | $ | 46,500 | $ | (29,883 | ) | $ | — | $ | — | $ | — | |||||||||||||||||
Ivy Cundill Global Value Fund | 117 | — | — | — | — | — | ||||||||||||||||||||||||
Ivy European Opportunities Fund | 166 | — | — | — | — | — | ||||||||||||||||||||||||
Ivy Global Bond Fund | 19 | — | — | — | — | — | ||||||||||||||||||||||||
Ivy Global Equity Income Fund. | 241 | — | — | — | — | — |
2017 | SEMIANNUAL REPORT | 201 |
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Fund | Forward foreign currency contracts(1) | Long futures contracts(2) | Short futures contracts(2) | Swap agreements(3) | Purchased options(2) | Written options(2) | ||||||||||||||||||||||||
Ivy Global Income Allocation Fund | $ | 460 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Ivy High Income Fund | 338 | — | — | — | — | — | ||||||||||||||||||||||||
Ivy International Core Equity Fund | 416 | — | — | — | — | — | ||||||||||||||||||||||||
Ivy Mid Cap Growth Fund | — | — | — | — | 508 | 264 | ||||||||||||||||||||||||
Ivy Municipal Bond Fund | — | — | (4,599 | ) | — | — | — | |||||||||||||||||||||||
Ivy Municipal High Income Fund | — | — | (32,819 | ) | — | — | — | |||||||||||||||||||||||
Ivy Small Cap Growth Fund | — | — | — | 30,768 | — | — | ||||||||||||||||||||||||
Ivy Value Fund | — | 2,055 | — | 3,786 | — | 105 |
(1) | Average absolute value of unrealized appreciation/depreciation during the period. |
(2) | Average value outstanding during the period. |
(3) | Average notional amount outstanding during the period. |
5. | WRITTEN OPTION ACTIVITY ($ amounts and notional amounts in thousands) |
Transactions in written options were as follows:
Fund | Outstanding at 3-31-17 | Options written | Options closed | Options exercised | Options expired | Outstanding at 9-30-17 | ||||||||||||||||||
Ivy Mid Cap Growth Fund |
| |||||||||||||||||||||||
Number of Contracts | N/A | 24,644 | (11,833 | ) | (4,739 | ) | (5,289 | ) | 2,783 | |||||||||||||||
Notional Amount | N/A | 2,464 | (1,183 | ) | (474 | ) | (529 | ) | 278 | |||||||||||||||
Premium Received | N/A | $ | 1,778 | $ | (572 | ) | $ | (213 | ) | $ | (191 | ) | $ | 802 | ||||||||||
Ivy Small Cap Growth Fund |
| |||||||||||||||||||||||
Number of Contracts | N/A | 4,554 | (4,554 | ) | — | — | N/A | |||||||||||||||||
Notional Amount | N/A | 455 | (455 | ) | — | — | N/A | |||||||||||||||||
Premium Received | N/A | $ | 364 | $ | (364 | ) | $ | — | $ | — | N/A | |||||||||||||
Ivy Value Fund |
| |||||||||||||||||||||||
Number of Contracts | 1,261 | 6,894 | (3,405 | ) | (2,532 | ) | (1,440 | ) | 778 | |||||||||||||||
Notional Amount | 126 | 689 | (340 | ) | (253 | ) | (144 | ) | 78 | |||||||||||||||
Premium Received | $ | 82 | $ | 651 | $ | (432 | ) | $ | (172 | ) | $ | (71 | ) | $ | 58 |
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, 2017 of the Subsidiary to the Fund (amounts in thousands).
Subsidiary | Date of Incorporation | Subscription Agreement | Fund Net Assets | Subsidiary Net Assets | Percentage Net Assets | |||||||||||||||
Ivy EME, Ltd. | 1-31-13 | 4-10-13 | $ | 1,863,670 | $ | 346 | 0.02 | % |
202 | SEMIANNUAL REPORT | 2017 |
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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 Advantus 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 Government 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 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 |
2017 | SEMIANNUAL REPORT | 203 |
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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 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 Core 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 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 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, 2017.
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 Advantus 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.
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.
204 | SEMIANNUAL REPORT | 2017 |
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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.
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, Class E and Class T 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 Government 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 N 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, Class E and Class T 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 Government Money Market Fund, may pay a distribution and/or service fee to Ivy Distributors, Inc. (“IDI”) for Class A, Class E and Class T 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, Class E and Class T 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
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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, Class E and Class T 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, 2017, 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 Advantus Bond Fund | $ | 101 | $ | — | * | $ | 4 | $ | 2 | $ | — | $ | 87 | |||||||||||
Ivy Core Equity Fund | 109 | — | * | 9 | 4 | — | 95 | |||||||||||||||||
Ivy Cundill Global Value Fund | 26 | — | * | — | * | 1 | N/A | 22 | ||||||||||||||||
Ivy Dividend Opportunities Fund | 42 | — | * | 4 | 1 | — | 33 | |||||||||||||||||
Ivy Emerging Markets Equity Fund | 275 | — | * | 1 | 5 | — | 371 | |||||||||||||||||
Ivy European Opportunities Fund | 26 | — | — | * | 1 | — | 22 | |||||||||||||||||
Ivy Global Bond Fund | 14 | — | 3 | 1 | N/A | 14 | ||||||||||||||||||
Ivy Global Equity Income Fund | 32 | — | * | 1 | — | * | N/A | 27 | ||||||||||||||||
Ivy Global Growth Fund | 27 | — | 2 | 1 | — | 24 | ||||||||||||||||||
Ivy Global Income Allocation Fund | 64 | — | * | 2 | 1 | — | 53 | |||||||||||||||||
Ivy Government Money Market Fund | — | 3 | 5 | 1 | — | — | ||||||||||||||||||
Ivy High Income Fund | 587 | 3 | 54 | 28 | — | 573 | ||||||||||||||||||
Ivy International Core Equity Fund | 271 | 1 | 6 | 9 | — | 454 | ||||||||||||||||||
Ivy Large Cap Growth Fund | 318 | 1 | 5 | 4 | — | 272 | ||||||||||||||||||
Ivy Limited-Term Bond Fund | 462 | 44 | 11 | 2 | — | 439 | ||||||||||||||||||
Ivy Managed International Opportunities Fund | 33 | — | * | — | * | — | * | — | 29 | |||||||||||||||
Ivy Micro Cap Growth Fund | 57 | — | * | — | * | 1 | N/A | 48 | ||||||||||||||||
Ivy Mid Cap Growth Fund | 131 | — | * | 7 | 5 | — | 127 | |||||||||||||||||
Ivy Mid Cap Income Opportunities Fund | 81 | 1 | N/A | 2 | — | 75 | ||||||||||||||||||
Ivy Municipal Bond Fund | 24 | — | * | — | * | 1 | N/A | 23 | ||||||||||||||||
Ivy Municipal High Income Fund | 57 | 1 | 9 | 6 | N/A | 70 | ||||||||||||||||||
Ivy Small Cap Core Fund | 100 | — | * | 1 | 5 | — | 108 | |||||||||||||||||
Ivy Small Cap Growth Fund | 143 | 1 | 4 | 7 | — | 137 | ||||||||||||||||||
Ivy Tax-Managed Equity Fund | 42 | — | * | — | * | — | * | N/A | 40 | |||||||||||||||
Ivy Value Fund | 27 | — | * | 8 | 1 | — | 25 |
* | 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. IICO, the Fund’s investment manager, IDI, the Fund’s distributor, and/or Waddell & Reed Services Company, doing business as WISC, the Fund’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund
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operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any). Fund and class expense limitations and related waivers/reimbursements for the period ended September 30, 2017 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 Advantus Bond Fund | All Classes | Contractual | 8-1-2011 | 7-31-2018 | N/A | $ | 148 | (1) | Investment Management Fee | ||||||||
Class E | Contractual | 1-31-2011 | 7-31-2018 | 1.02%(4) | $ | 3 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class I | Contractual | 8-1-2011 | 7-31-2018 | 0.54% | $ | 397 | Shareholder Servicing | ||||||||||
Class N | Contractual | 8-1-2011 | 7-31-2018 | 0.54% | $ | 7 | Shareholder Servicing | ||||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Core Equity Fund | Class A | Contractual | 1-11-2013 | 7-31-2018 | 1.15% | $ | 63 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.13% | $ | 16 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class I | Contractual | 1-11-2013 | 7-31-2018 | 0.84% | $ | 138 | Shareholder Servicing | ||||||||||
Class Y | Contractual | 1-11-2013 | 7-31-2018 | 0.84% | $ | 93 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Ivy Cundill Global Value Fund | All Classes | Contractual | 12-3-2012 | 7-31-2018 | N/A | $ | 162 | (2) | Investment Management Fee | ||||||||
Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.31% | $ | 2 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Dividend Opportunities Fund | Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.13% | $ | 11 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Emerging Markets Equity Fund | Class A | Contractual | 3-17-2014 | 7-31-2018 | 1.58% | $ | — | N/A | |||||||||
Class B | Contractual | 3-17-2014 | 7-31-2018 | 2.50% | $ | — | N/A | ||||||||||
Class I | Contractual | 3-17-2014 | 7-31-2018 | 0.99% | $ | 490 | Shareholder Servicing | ||||||||||
Class N | Contractual | 3-17-2014 | 7-31-2018 | 0.99% | $ | — | N/A | ||||||||||
Class T | Contractual | 7-5-2017 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Class Y | Contractual | 3-17-2014 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy European Opportunities Fund | Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Global Bond Fund | All Classes | Contractual | 6-2-2008 | 7-31-2018 | N/A | $ | 60 | (3) | Investment Management Fee | ||||||||
Class A | Contractual | 6-2-2008 | 7-31-2018 | 0.99% | $ | 59 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class B | Contractual | 6-2-2008 | 7-31-2018 | 1.74% | $ | 4 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class C | Contractual | 6-2-2008 | 7-31-2018 | 1.74% | $ | 11 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class I | Contractual | 6-2-2008 | 7-31-2018 | 0.74% | $ | 69 | Shareholder Servicing | ||||||||||
Class N | Contractual | 4-1-2017 | 7-31-2018 | 0.74% | $ | — | Shareholder Servicing | ||||||||||
Class Y | Contractual | 6-2-2008 | 7-31-2018 | 0.99% | $ | 2 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Ivy Global Equity Income Fund | Class A | Contractual | 6-4-2012 | 7-31-2018 | 1.30% | $ | — | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 6-4-2012 | 7-31-2018 | 1.19% | $ | — | * | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy Global Growth Fund | Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A |
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Fund Name | Share Class Name | Type of Expense Limit | Commencement Date | End Date | Expense Limit | Amount of Expense Waiver/ Reimbursement | Expense Reduced | ||||||||||
Ivy Global Income Allocation Fund | Class E | Contractual | 6-4-2012 | 7-31-2018 | 1.31%(4) | $ | 2 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 6-4-2012 | 7-31-2018 | 1.17% | $ | — | * | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy Government Money Market Fund | Class A | Voluntary | N/A | N/A | To maintain minimum yield(4) | $ | — | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class B | Voluntary | N/A | N/A | To maintain minimum yield(4) | $ | 17 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class C | Voluntary | N/A | N/A | To maintain minimum yield(4) | $ | 87 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class E | Voluntary | N/A | N/A | To maintain minimum yield(4) | $ | — | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class N | Voluntary | N/A | N/A | To maintain minimum yield(4) | $ | — | Shareholder Servicing | ||||||||||
Ivy High Income Fund | Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.11%(5) | $ | 4 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class T | Contractual | 7-5-2017 | 7-31-2018 | Not to exceed Class A | $ | — | Shareholder Servicing | ||||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | 37 | N/A | ||||||||||
Ivy International Core Equity Fund | Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.28%(4) | $ | 8 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class T | Contractual | 7-5-2017 | 7-31-2018 | Not to exceed Class A | $ | — | Shareholder Servicing | ||||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Large Cap Growth Fund | Class A | Contractual | 6-1-2006 | 7-31-2018 | 1.15% | $ | 28 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.15% | $ | 11 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class I | Contractual | 6-13-2011 | 7-31-2018 | 0.88% | $ | 30 | Shareholder Servicing | ||||||||||
Class Y | Contractual | 6-1-2006 | 7-31-2018 | 1.06% | $ | 11 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Ivy Limited-Term Bond Fund | Class E | Contractual | 8-1-2010 | 7-31-2018 | 0.98% | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Ivy Managed International Opportunities Fund | Class A | Contractual | 3-17-2014 | 7-31-2018 | 0.49% | $ | — | N/A | |||||||||
Class B | Contractual | 3-17-2014 | 7-31-2018 | 1.40% | $ | — | * | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class C | Contractual | 3-17-2014 | 7-31-2018 | 1.29% | $ | — | N/A | ||||||||||
Class E | Contractual | 3-17-2014 | 7-31-2018 | 0.39% | $ | — | * | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class I | Contractual | 3-17-2014 | 7-31-2018 | 0.16% | $ | 12 | Shareholder Servicing | ||||||||||
Class N | Contractual | 7-5-2017 | 7-31-2018 | Not to exceed Class I | $ | — | N/A | ||||||||||
Class R | Contractual | 3-17-2014 | 7-31-2018 | 0.72% | $ | — | N/A | ||||||||||
Class Y | Contractual | 3-17-2014 | 7-31-2018 | 0.38% | $ | — | * | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 3-17-2014 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Micro Cap Growth Fund | Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A |
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Fund Name | Share Class Name | Type of Expense Limit | Commencement Date | End Date | Expense Limit | Amount of Expense Waiver/ Reimbursement | Expense Reduced | ||||||||||
Ivy Mid Cap Growth Fund | Class A | Contractual | 8-1-2014 | 7-31-2018 | 1.31% | $ | 33 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.30% | $ | 14 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed | $ | — | N/A | ||||||||||
Ivy Mid Cap Income Opportunities Fund | Class A | Contractual | 10-1-2014 | 7-31-2018 | 1.35% | $ | 35 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class C | Contractual | 10-1-2014 | 7-31-2018 | 2.07% | $ | 8 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class E | Contractual | 10-1-2014 | 7-31-2018 | 1.30% | $ | — | N/A | ||||||||||
Class I | Contractual | 10-1-2014 | 7-31-2018 | 1.05% | $ | 58 | Shareholder Servicing | ||||||||||
Class N | Contractual | 10-1-2014 | 7-31-2018 | 1.05% | $ | — | N/A | ||||||||||
Class R | Contractual | 10-1-2014 | 7-31-2018 | 1.80% | $ | — | N/A | ||||||||||
Class Y | Contractual | 10-1-2014 | 7-31-2018 | 1.35% | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Ivy Municipal Bond Fund | Class N | Contractual | 7-5-2017 | 7-31-2018 | Not to exceed Class I | $ | — | Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | * | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy Municipal High Income Fund | All Classes | Contractual | 6-2-2008 | 7-31-2018 | N/A | $ | 101 | (6) | Investment Management Fee | ||||||||
Class B | Contractual | 8-1-2011 | 7-31-2018 | 1.62% | $ | 3 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class C | Contractual | 8-1-2011 | 7-31-2018 | 1.58% | $ | 43 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class I | Contractual | 8-1-2011 | 7-31-2018 | 0.68% | $ | 124 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class N | Contractual | 7-5-2017 | 7-31-2018 | Not to exceed Class I | $ | — | Shareholder Servicing | ||||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | 0.94% | $ | 8 | 12b-1 Fees and/or Shareholder Servicing | ||||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Small Cap Core Fund | Class T | Contractual | 7-5-2017 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | |||||||||
Class Y | Contractual | 8-1-2008 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Small Cap Growth Fund | Class E | Contractual | 8-1-2008 | 7-31-2018 | 1.35%(5) | $ | 10 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class T | Contractual | �� | 7-5-2017 | 7-31-2018 | Not to exceed Class A | $ | — | Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A | ||||||||||
Ivy Tax-Managed Equity Fund | Class N | Contractual | 7-5-2017 | 7-31-2018 | Not to exceed Class I | $ | — | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | * | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy Value Fund | Class Y | Contractual | 8-1-2011 | 7-31-2018 | Not to exceed Class A | $ | — | N/A |
* | Not shown due to rounding. |
(1) | Due to Class E, Class I, Class N and/or Class Y contractual expense limits, investment management fees were waived for all share classes. |
(2) | The Fund’s management fee is being reduced by 0.16% of average daily net assets. |
(3) | Due to Class A, Class B, Class C, Class I and/or Class Y contractual expense limits, investment management fees were waived for all share classes. |
(4) | Minimum yield was 0.01%. |
(5) | Reflects the lower expense limit which went into effect July 5, 2017. |
(6) | Due to Class B, Class C, Class I and/or Class Y contractual expense limits, investment management fees were waived for all share classes. |
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Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2017 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 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, 2017.
9. | AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands) |
A summary of the transactions in affiliated companies during the period ended September 30, 2017 follows:
3-31-17 Share Balance | Gross Additions | Gross Reductions | Realized Gain/(Loss) | Distributions Received | 9-30-17 Share Balance | 9-30-17 Value | Net Change in Unrealized Depreciation | |||||||||||||||||||||||||
Ivy High Income Fund | ||||||||||||||||||||||||||||||||
Larchmont Resources LLC(2) | 15 | $ | — | $ | — | $ | — | $ | — | 15 | $ | 4,905 | $ | (885 | ) | |||||||||||||||||
Maritime Finance Co. Ltd. | 1,750 | — | — | — | 1,810 | 1,750 | 17,640 | (381 | ) | |||||||||||||||||||||||
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$ | — | $ | 1,810 | $ | 22,545 | $ | (1,266 | ) | ||||||||||||||||||||||||
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3-31-17 Principal Balance | Interest Received | 9-30-17 Principal Balance | Net Change in Unrealized Depreciation | |||||||||||||||||||||||||||||
Larchmont Resources LLC (10.000% Cash or 10.000% PIK), 10.320%, 8-7-20 | $ | 12,007 | 310 | — | — | $ | 565 | $ | 12,317 | 11,947 | $ | (415 | ) | |||||||||||||||||||
3-31-17 Share Balance | Gross Additions | Gross Reductions | Realized Gain/(Loss)(1) | Distributions Received | 9-30-17 Share Balance | 9-30-17 Value | Net Change in Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||||||
Ivy Managed International Opportunities Fund | ||||||||||||||||||||||||||||||||
Ivy Emerging Markets Equity Fund, Class I | 1,880 | $ | 21 | $ | 278 | $ | 313 | $ | — | N/A | N/A | $ | (11,023 | ) | ||||||||||||||||||
Ivy Emerging Markets Equity Fund, Class N(2) | N/A | 2,174 | 1,110 | 1,370 | — | 1,818 | $ | 37,751 | 15,117 | |||||||||||||||||||||||
Ivy European Opportunities Fund, Class I | 987 | 18 | 321 | 186 | — | N/A | N/A | (1,879 | ) | |||||||||||||||||||||||
Ivy European Opportunities Fund, Class N | N/A | 1,863 | 1,192 | 751 | — | 963 | 32,013 | 5,106 | ||||||||||||||||||||||||
Ivy Global Growth Fund, Class I | 435 | 12 | 260 | 77 | — | N/A | N/A | (1,769 | ) | |||||||||||||||||||||||
Ivy Global Growth Fund, Class N(2) | N/A | 1,252 | 875 | 320 | — | 427 | 20,550 | 3,281 | ||||||||||||||||||||||||
Ivy Global Income Allocation Fund, Class I | 1,880 | 18 | 343 | 163 | — | N/A | N/A | (2,243 | ) | |||||||||||||||||||||||
Ivy Global Income Allocation Fund, Class N | N/A | 3,281 | 1,228 | 564 | 710 | 1,943 | 29,968 | 2,172 | ||||||||||||||||||||||||
Ivy International Core Equity Fund, Class I | 4,422 | 51 | 772 | 663 | — | N/A | N/A | (8,417 | ) | |||||||||||||||||||||||
Ivy International Core Equity Fund, Class N | N/A | 5,278 | 3,012 | 2,243 | — | 4,333 | 85,927 | 12,887 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 6,650 | $ | 710 | $ | 206,209 | $ | 13,232 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
3-31-17 Share Balance | Gross Additions | Gross Reductions | Realized Gain/(Loss) | Distributions Received | 9-30-17 Share Balance | 9-30-17 Value | Net Change in Unrealized Depreciation | |||||||||||||||||||||||||
Ivy Municipal High Income Fund | ||||||||||||||||||||||||||||||||
1155 Island Avenue LLC(2) | 6,578 | $ | — | $ | — | $ | — | $ | — | 6,578 | $ | 1,841 | $ | (197 | ) | |||||||||||||||||
3-31-17 Principal Balance | Interest Received | 9-30-17 Principal Balance | Net Change in Unrealized Depreciation | |||||||||||||||||||||||||||||
1155 Island Avenue LLC, 10.000%, 12-11-24 | $ | 310 | — | — | — | * | $ | 15 | $ | 311 | 311 | $ | — | |||||||||||||||||||
1155 Island Avenue LLC (10.000% Cash or 12.500% PIK), 10.000%, 12-11-24 | 2,960 | — | — | — | 147 | 2,960 | 2,960 | (17 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | — | * | $ | 162 | $ | 3,271 | $ | (17 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
* | Not shown due to rounding. |
(1) | Included in Realized Gain/Loss, if applicable, are distributions from capital gains from the underlying securities. |
(2) | No dividends were paid during the preceding 12 months. |
210 | SEMIANNUAL REPORT | 2017 |
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10. | INVESTMENT SECURITIES TRANSACTIONS ($ amounts in thousands) |
The cost of purchases and the proceeds from maturities and sales of investment securities (excluding short-term securities) for the period ended September 30, 2017, were as follows:
Purchases | Sales | |||||||||||||||
U.S. Government | Other Issuers | U.S. Government | Other Issuers | |||||||||||||
Ivy Advantus Bond Fund | $ | 600,280 | $ | 323,190 | $ | 523,303 | $ | 195,094 | ||||||||
Ivy Core Equity Fund | — | 430,061 | — | 582,648 | ||||||||||||
Ivy Cundill Global Value Fund | — | 42,548 | — | 65,058 | ||||||||||||
Ivy Dividend Opportunities Fund | — | 42,411 | — | 74,101 | ||||||||||||
Ivy Emerging Markets Equity Fund | — | 1,063,627 | — | 290,938 | ||||||||||||
Ivy European Opportunities Fund | — | 138,862 | — | 83,235 | ||||||||||||
Ivy Global Bond Fund | 26,547 | 28,232 | 12,051 | 20,946 | ||||||||||||
Ivy Global Equity Income Fund | — | 133,049 | — | 192,598 | ||||||||||||
Ivy Global Growth Fund | — | 146,862 | — | 183,527 | ||||||||||||
Ivy Global Income Allocation Fund | — | 172,318 | 6,402 | 214,884 | ||||||||||||
Ivy Government Money Market Fund | — | — | — | — | ||||||||||||
Ivy High Income Fund | — | 837,152 | — | 990,566 | ||||||||||||
Ivy International Core Equity Fund | — | 2,578,231 | — | 1,332,681 | ||||||||||||
Ivy Large Cap Growth Fund | — | 443,269 | — | 459,347 | ||||||||||||
Ivy Limited-Term Bond Fund | 6,982 | 170,976 | 88,327 | 233,364 | ||||||||||||
Ivy Managed International Opportunities Fund | — | 13,968 | — | 16,041 | ||||||||||||
Ivy Micro Cap Growth Fund | — | 15,545 | — | 29,130 | ||||||||||||
Ivy Mid Cap Growth Fund | — | 291,874 | — | 429,985 | ||||||||||||
Ivy Mid Cap Income Opportunities Fund | — | 91,428 | — | 81,684 | ||||||||||||
Ivy Municipal Bond Fund | — | — | — | 9,018 | ||||||||||||
Ivy Municipal High Income Fund | — | 7,707 | — | 151,565 | ||||||||||||
Ivy Small Cap Core Fund | — | 335,979 | — | 281,162 | ||||||||||||
Ivy Small Cap Growth Fund | — | 237,418 | — | 203,562 | ||||||||||||
Ivy Tax-Managed Equity Fund | — | 37,581 | — | 37,644 | ||||||||||||
Ivy Value Fund | — | 220,599 | — | 121,575 |
2017 | SEMIANNUAL REPORT | 211 |
Table of Contents
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 Advantus Bond Fund | Ivy Core Equity Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 2,372 | $ | 25,517 | 8,589 | $ | 91,338 | 1,166 | $ | 16,275 | 4,710 | $ | 61,865 | ||||||||||||||||||||
Class B | 20 | 220 | 133 | 1,426 | 13 | 154 | 114 | 1,270 | ||||||||||||||||||||||||
Class C | 173 | 1,868 | 887 | 9,469 | 244 | 2,938 | 1,088 | 12,554 | ||||||||||||||||||||||||
Class E | 30 | 319 | 168 | 1,800 | 61 | 852 | 217 | 2,848 | ||||||||||||||||||||||||
Class I | 9,600 | 103,272 | 56,092 | 600,304 | 3,056 | 47,482 | 21,338 | 301,046 | ||||||||||||||||||||||||
Class N | 23,538 | 253,031 | 97 | 1,029 | 9,870 | 151,841 | 325 | 4,714 | ||||||||||||||||||||||||
Class R | 503 | 5,400 | 609 | 6,446 | 7 | 100 | 50 | 650 | ||||||||||||||||||||||||
Class Y | 42 | 454 | 315 | 3,366 | 174 | 2,612 | 902 | 12,783 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | 247 | 2,660 | 700 | 7,450 | — | — | 758 | 9,983 | ||||||||||||||||||||||||
Class B | 3 | 36 | 8 | 83 | — | — | 24 | 269 | ||||||||||||||||||||||||
Class C | 18 | 197 | 44 | 473 | — | — | 350 | 4,031 | ||||||||||||||||||||||||
Class E | 5 | 58 | 10 | 111 | — | — | 31 | 404 | ||||||||||||||||||||||||
Class I | 695 | 7,471 | 952 | 10,169 | — | — | 871 | 12,703 | ||||||||||||||||||||||||
Class N | 185 | 1,997 | 5 | 50 | — | — | 275 | 4,015 | ||||||||||||||||||||||||
Class R | 11 | 118 | 9 | 95 | — | — | 3 | 43 | ||||||||||||||||||||||||
Class Y | 6 | 62 | 11 | 113 | — | — | 143 | 2,030 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (3,193 | ) | (34,324 | ) | (56,758 | ) | (606,588 | ) | (2,855 | ) | (39,684 | ) | (28,469 | ) | (364,882 | ) | ||||||||||||||||
Class B | (132 | ) | (1,419 | ) | (290 | ) | (3,090 | ) | (175 | ) | (2,027 | ) | (321 | ) | (3,606 | ) | ||||||||||||||||
Class C | (600 | ) | (6,443 | ) | (1,602 | ) | (17,047 | ) | (1,209 | ) | (14,650 | ) | (3,123 | ) | (36,175 | ) | ||||||||||||||||
Class E | (65 | ) | (704 | ) | (149 | ) | (1,580 | ) | (74 | ) | (1,031 | ) | (157 | ) | (2,067 | ) | ||||||||||||||||
Class I | (7,942 | ) | (85,424 | ) | (15,245 | ) | (162,594 | ) | (8,852 | ) | (136,115 | ) | (8,871 | ) | (130,388 | ) | ||||||||||||||||
Class N | (4,229 | ) | (45,579 | ) | (91 | ) | (979 | ) | (10,334 | ) | (163,774 | ) | (3,720 | ) | (54,513 | ) | ||||||||||||||||
Class R | (194 | ) | (2,079 | ) | (188 | ) | (2,011 | ) | (19 | ) | (261 | ) | (32 | ) | (418 | ) | ||||||||||||||||
Class Y | (73 | ) | (784 | ) | (168 | ) | (1,799 | ) | (1,037 | ) | (15,536 | ) | (4,877 | ) | (68,656 | ) | ||||||||||||||||
Net increase (decrease) | 21,020 | $ | 225,924 | (5,862 | ) | $ | (61,966 | ) | (9,964 | ) | $ | (150,824 | ) | (18,371 | ) | $ | (229,497 | ) |
212 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Ivy Cundill Global Value Fund | Ivy Dividend Opportunities Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 162 | $ | 2,760 | 694 | $ | 10,617 | 430 | $ | 7,948 | 2,430 | $ | 42,761 | ||||||||||||||||||||
Class B | — | * | 6 | 2 | 29 | 1 | 25 | 63 | 1,087 | |||||||||||||||||||||||
Class C | 14 | 233 | 62 | 925 | 44 | 797 | 460 | 8,030 | ||||||||||||||||||||||||
Class E | 3 | 52 | 12 | 194 | 39 | 715 | 67 | 1,177 | ||||||||||||||||||||||||
Class I | 297 | 5,211 | 7,149 | 102,985 | 840 | 15,604 | 10,986 | 190,964 | ||||||||||||||||||||||||
Class N | 15 | 262 | 22 | 355 | 41 | 756 | 117 | 2,070 | ||||||||||||||||||||||||
Class R | 2 | 36 | — | * | 3 | — | * | 5 | 15 | 271 | ||||||||||||||||||||||
Class Y | 8 | 138 | 15 | 226 | 13 | 242 | 43 | 773 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | — | — | 20 | 332 | 37 | 686 | 438 | 7,671 | ||||||||||||||||||||||||
Class B | — | — | — | — | — | * | 8 | 16 | 267 | |||||||||||||||||||||||
Class C | — | — | — | — | 4 | 69 | 92 | 1,586 | ||||||||||||||||||||||||
Class E | — | — | — | * | 5 | 2 | 38 | 17 | 291 | |||||||||||||||||||||||
Class I | — | — | 43 | 725 | 58 | 1,089 | 457 | 8,053 | ||||||||||||||||||||||||
Class N | — | — | 1 | 10 | 1 | 18 | 6 | 111 | ||||||||||||||||||||||||
Class R | — | — | — | — | — | * | — | * | — | * | 4 | |||||||||||||||||||||
Class Y | — | — | 1 | 13 | 1 | 26 | 16 | 281 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (592 | ) | (10,178 | ) | (8,342 | ) | (117,120 | ) | (1,067 | ) | (19,727 | ) | (11,322 | ) | (195,594 | ) | ||||||||||||||||
Class B | (13 | ) | (199 | ) | (39 | ) | (544 | ) | (81 | ) | (1,466 | ) | (153 | ) | (2,649 | ) | ||||||||||||||||
Class C | (152 | ) | (2,446 | ) | (322 | ) | (4,649 | ) | (409 | ) | (7,444 | ) | (901 | ) | (15,712 | ) | ||||||||||||||||
Class E | (58 | ) | (1,021 | ) | (12 | ) | (182 | ) | (20 | ) | (376 | ) | (62 | ) | (1,086 | ) | ||||||||||||||||
Class I | (997 | ) | (17,574 | ) | (2,014 | ) | (32,400 | ) | (1,968 | ) | (36,545 | ) | (2,850 | ) | (50,875 | ) | ||||||||||||||||
Class N | (13 | ) | (228 | ) | (22 | ) | (362 | ) | (46 | ) | (861 | ) | (26 | ) | (465 | ) | ||||||||||||||||
Class R | (2 | ) | (35 | ) | — | — | (10 | ) | (180 | ) | (4 | ) | (68 | ) | ||||||||||||||||||
Class Y | (18 | ) | (324 | ) | (62 | ) | (940 | ) | (61 | ) | (1,133 | ) | (165 | ) | (2,916 | ) | ||||||||||||||||
Net decrease | (1,344 | ) | $ | (23,307 | ) | (2,792 | ) | $ | (39,778 | ) | (2,151 | ) | $ | (39,706 | ) | (260 | ) | $ | (3,968 | ) |
* | Not shown due to rounding. |
2017 | SEMIANNUAL REPORT | 213 |
Table of Contents
Ivy Emerging Markets Equity Fund | Ivy European Opportunities Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 9,747 | $ | 181,210 | 6,259 | $ | 95,478 | 188 | $ | 5,760 | 405 | $ | 10,805 | ||||||||||||||||||||
Class B | 40 | 623 | 51 | 635 | — | * | 8 | 1 | 28 | |||||||||||||||||||||||
Class C | 1,694 | 27,223 | 908 | 12,240 | 18 | 516 | 29 | 749 | ||||||||||||||||||||||||
Class E | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class I | 28,711 | 551,412 | 25,622 | 394,279 | 347 | 10,684 | 3,169 | 80,398 | ||||||||||||||||||||||||
Class N | 11,599 | 214,849 | 703 | 11,574 | 3,248 | 102,168 | 12 | 341 | ||||||||||||||||||||||||
Class R | 449 | 8,077 | 427 | 6,373 | 1 | 34 | 2 | 47 | ||||||||||||||||||||||||
Class T | 14 | 250 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | 1,290 | 23,984 | 1,508 | 23,105 | 10 | 307 | 7 | 183 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | — | — | — | — | — | — | 37 | 1,003 | ||||||||||||||||||||||||
Class B | — | — | — | — | — | — | — | * | 5 | |||||||||||||||||||||||
Class C | — | — | — | — | — | — | 3 | 66 | ||||||||||||||||||||||||
Class E | — | — | — | — | — | — | — | * | 1 | |||||||||||||||||||||||
Class I | — | — | — | — | — | — | 66 | 1,793 | ||||||||||||||||||||||||
Class N | — | — | — | — | — | — | 1 | 22 | ||||||||||||||||||||||||
Class R | — | — | — | — | — | — | — | * | — | |||||||||||||||||||||||
Class T | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | — | — | — | — | — | — | — | * | 10 | |||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (2,891 | ) | (53,734 | ) | (15,406 | ) | (217,287 | ) | (364 | ) | (11,017 | ) | (4,129 | ) | (105,191 | ) | ||||||||||||||||
Class B | (82 | ) | (1,243 | ) | (115 | ) | (1,423 | ) | (5 | ) | (149 | ) | (16 | ) | (399 | ) | ||||||||||||||||
Class C | (315 | ) | (4,999 | ) | (1,089 | ) | (14,097 | ) | (57 | ) | (1,632 | ) | (187 | ) | (4,732 | ) | ||||||||||||||||
Class E | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class I | (6,459 | ) | (123,309 | ) | (7,345 | ) | (113,748 | ) | (1,435 | ) | (43,934 | ) | (1,619 | ) | (43,925 | ) | ||||||||||||||||
Class N | (990 | ) | (19,365 | ) | (232 | ) | (3,696 | ) | (168 | ) | (5,332 | ) | (20 | ) | (541 | ) | ||||||||||||||||
Class R | (213 | ) | (3,858 | ) | (151 | ) | (2,280 | ) | (1 | ) | (19 | ) | — | * | (7 | ) | ||||||||||||||||
Class T | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | (460 | ) | (8,835 | ) | (997 | ) | (15,083 | ) | (7 | ) | (229 | ) | (17 | ) | (459 | ) | ||||||||||||||||
Net increase (decrease) | 42,134 | $ | 792,285 | 10,143 | $ | 176,070 | 1,775 | $ | 57,165 | (2,256 | ) | $ | (59,803 | ) |
* | Not shown due to rounding. |
214 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Ivy Global Bond Fund | Ivy Global Equity Income Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 577 | $ | 5,616 | 1,742 | $ | 16,426 | 348 | $ | 4,526 | 4,428 | $ | 53,508 | ||||||||||||||||||||
Class B | 10 | 94 | 38 | 361 | 1 | 8 | 21 | 257 | ||||||||||||||||||||||||
Class C | 304 | 2,967 | 212 | 2,007 | 55 | 709 | 231 | 2,794 | ||||||||||||||||||||||||
Class I | 2,114 | 20,584 | 10,172 | 95,689 | 1,240 | 16,050 | 24,155 | 283,183 | ||||||||||||||||||||||||
Class N | 2,491 | 24,475 | 356 | 3,345 | 37 | 490 | 35 | 431 | ||||||||||||||||||||||||
Class R | 11 | 112 | 24 | 230 | 1 | 15 | 10 | 115 | ||||||||||||||||||||||||
Class Y | 35 | 341 | 86 | 822 | 9 | 110 | 23 | 284 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | 42 | 412 | 148 | 1,398 | 85 | 1,113 | 431 | 5,090 | ||||||||||||||||||||||||
Class B | 1 | 10 | 3 | 32 | 1 | 7 | 2 | 19 | ||||||||||||||||||||||||
Class C | 7 | 68 | 21 | 196 | 8 | 102 | 18 | 219 | ||||||||||||||||||||||||
Class I | 87 | 847 | 153 | 1,457 | 322 | 4,193 | 487 | 5,872 | ||||||||||||||||||||||||
Class N | 2 | 16 | 6 | 52 | 2 | 24 | 4 | 46 | ||||||||||||||||||||||||
Class R | — | * | 3 | — | * | 5 | — | * | — | * | — | * | 3 | |||||||||||||||||||
Class Y | 3 | 26 | 6 | 54 | — | * | 1 | 1 | 7 | |||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (896 | ) | (8,723 | ) | (11,331 | ) | (106,286 | ) | (1,084 | ) | (14,030 | ) | (20,144 | ) | (234,338 | ) | ||||||||||||||||
Class B | (68 | ) | (663 | ) | (123 | ) | (1,164 | ) | (14 | ) | (178 | ) | (28 | ) | (337 | ) | ||||||||||||||||
Class C | (312 | ) | (3,029 | ) | (815 | ) | (7,711 | ) | (92 | ) | (1,193 | ) | (445 | ) | (5,369 | ) | ||||||||||||||||
Class I | (1,503 | ) | (14,638 | ) | (3,718 | ) | (35,332 | ) | (5,449 | ) | (71,152 | ) | (6,270 | ) | (75,846 | ) | ||||||||||||||||
Class N | (196 | ) | (1,909 | ) | (101 | ) | (956 | ) | (21 | ) | (280 | ) | (45 | ) | (546 | ) | ||||||||||||||||
Class R | (8 | ) | (76 | ) | (10 | ) | (98 | ) | — | * | (1 | ) | (18 | ) | (222 | ) | ||||||||||||||||
Class Y | (37 | ) | (358 | ) | (78 | ) | (740 | ) | (2 | ) | (24 | ) | (58 | ) | (699 | ) | ||||||||||||||||
Net increase (decrease) | 2,664 | $ | 26,175 | (3,209 | ) | $ | (30,213 | ) | (4,553 | ) | $ | (59,510 | ) | 2,838 | $ | 34,471 |
* | Not shown due to rounding. |
2017 | SEMIANNUAL REPORT | 215 |
Table of Contents
Ivy Global Growth Fund | Ivy Global Income Allocation Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 162 | $ | 7,219 | 613 | $ | 24,313 | 842 | $ | 12,811 | 4,202 | $ | 59,712 | ||||||||||||||||||||
Class B | 1 | 25 | 4 | 138 | 8 | 124 | 43 | 602 | ||||||||||||||||||||||||
Class C | 15 | 594 | 150 | 5,211 | 83 | 1,238 | 897 | 12,640 | ||||||||||||||||||||||||
Class E | — | — | — | — | 16 | 236 | 64 | 906 | ||||||||||||||||||||||||
Class I | 557 | 25,301 | 7,168 | 275,983 | 1,977 | 30,258 | 33,587 | 466,265 | ||||||||||||||||||||||||
Class N | 468 | 21,181 | 182 | 7,181 | 2,111 | 32,417 | 37 | 535 | ||||||||||||||||||||||||
Class R | 5 | 208 | 28 | 1,099 | — | * | 3 | 19 | 269 | |||||||||||||||||||||||
Class Y | 26 | 1,169 | 132 | 5,254 | 44 | 668 | 122 | 1,778 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | — | — | — | — | 291 | 4,417 | 942 | 13,204 | ||||||||||||||||||||||||
Class B | — | — | — | — | 4 | 58 | 8 | 111 | ||||||||||||||||||||||||
Class C | — | — | — | — | 50 | 752 | 97 | 1,351 | ||||||||||||||||||||||||
Class E | — | — | — | — | 5 | 71 | 8 | 109 | ||||||||||||||||||||||||
Class I | — | — | — | — | 626 | 9,595 | 884 | 12,701 | ||||||||||||||||||||||||
Class N | — | — | — | — | 50 | 763 | 5 | 65 | ||||||||||||||||||||||||
Class R | — | — | — | — | — | * | — | * | — | — | ||||||||||||||||||||||
Class Y | — | — | — | — | 4 | 68 | 3 | 50 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (298 | ) | (13,378 | ) | (7,525 | ) | (285,172 | ) | (2,098 | ) | (31,844 | ) | (35,483 | ) | (488,405 | ) | ||||||||||||||||
Class B | (11 | ) | (420 | ) | (29 | ) | (1,006 | ) | (49 | ) | (730 | ) | (114 | ) | (1,606 | ) | ||||||||||||||||
Class C | (82 | ) | (3,186 | ) | (204 | ) | (7,094 | ) | (506 | ) | (7,580 | ) | (1,544 | ) | (21,763 | ) | ||||||||||||||||
Class E | — | — | — | — | (23 | ) | (343 | ) | (51 | ) | (726 | ) | ||||||||||||||||||||
Class I | (1,488 | ) | (67,510 | ) | (2,904 | ) | (118,255 | ) | (6,400 | ) | (98,098 | ) | (8,798 | ) | (127,427 | ) | ||||||||||||||||
Class N | (46 | ) | (2,129 | ) | (79 | ) | (3,212 | ) | (194 | ) | (2,990 | ) | (40 | ) | (576 | ) | ||||||||||||||||
Class R | (13 | ) | (560 | ) | (32 | ) | (1,284 | ) | (1 | ) | (16 | ) | (17 | ) | (251 | ) | ||||||||||||||||
Class Y | (124 | ) | (5,526 | ) | (238 | ) | (9,536 | ) | (52 | ) | (790 | ) | (67 | ) | (957 | ) | ||||||||||||||||
Net decrease | (828 | ) | $ | (37,012 | ) | (2,734 | ) | $ | (106,380 | ) | (3,212 | ) | $ | (48,912 | ) | (5,196 | ) | $ | (71,413 | ) |
* | Not shown due to rounding. |
216 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Ivy Government Money Market Fund | Ivy High Income Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 186,863 | $ | 186,863 | 321,835 | $ | 321,835 | 22,396 | $ | 170,784 | 58,694 | $ | 430,146 | ||||||||||||||||||||
Class B | 536 | 536 | 3,635 | 3,635 | 58 | 437 | 553 | 4,066 | ||||||||||||||||||||||||
Class C | 6,419 | 6,419 | 27,720 | 27,720 | 5,589 | 42,575 | 18,215 | 133,637 | ||||||||||||||||||||||||
Class E | 1,402 | 1,402 | 3,888 | 3,888 | 87 | 667 | 338 | 2,478 | ||||||||||||||||||||||||
Class I | N/A | N/A | N/A | N/A | 36,967 | 282,214 | 171,766 | 1,253,661 | ||||||||||||||||||||||||
Class N | 4,511 | 4,511 | N/A | N/A | 4,809 | 36,669 | 2,366 | 17,514 | ||||||||||||||||||||||||
Class R | N/A | N/A | N/A | N/A | 615 | 4,692 | 2,015 | 14,799 | ||||||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | 33 | 250 | N/A | N/A | ||||||||||||||||||||||||
Class Y | N/A | N/A | N/A | N/A | 8,924 | 68,123 | 25,827 | 189,914 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | 133 | 133 | 51 | 51 | 4,839 | 36,944 | 12,923 | 94,683 | ||||||||||||||||||||||||
Class B | — | * | — | * | 1 | 1 | 250 | 1,911 | 578 | 4,239 | ||||||||||||||||||||||
Class C | 1 | 1 | 5 | 5 | 3,160 | 24,122 | 7,248 | 53,198 | ||||||||||||||||||||||||
Class E | 5 | 5 | 1 | 1 | 43 | 329 | 87 | 639 | ||||||||||||||||||||||||
Class I | N/A | N/A | N/A | N/A | 7,166 | 54,707 | 13,101 | 96,486 | ||||||||||||||||||||||||
Class N | 1 | 1 | N/A | N/A | 222 | 1,691 | 450 | 3,290 | ||||||||||||||||||||||||
Class R | N/A | N/A | N/A | N/A | 282 | 2,150 | 597 | 4,390 | ||||||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | N/A | N/A | N/A | N/A | 1,302 | 9,937 | 3,135 | 23,032 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (239,905 | ) | (239,905 | ) | (304,392 | ) | (304,392 | ) | (31,525 | ) | (240,443 | ) | (177,033 | ) | (1,286,634 | ) | ||||||||||||||||
Class B | (2,038 | ) | (2,038 | ) | (4,605 | ) | (4,605 | ) | (1,534 | ) | (11,703 | ) | (2,833 | ) | (20,794 | ) | ||||||||||||||||
Class C | (12,574 | ) | (12,574 | ) | (43,257 | ) | (43,257 | ) | (17,816 | ) | (135,965 | ) | (46,241 | ) | (338,974 | ) | ||||||||||||||||
Class E | (1,834 | ) | (1,834 | ) | (4,438 | ) | (4,438 | ) | (117 | ) | (891 | ) | (328 | ) | (2,412 | ) | ||||||||||||||||
Class I | N/A | N/A | N/A | N/A | (48,400 | ) | (369,088 | ) | (139,630 | ) | (1,026,757 | ) | ||||||||||||||||||||
Class N | (72 | ) | (72 | ) | N/A | N/A | (903 | ) | (6,885 | ) | (6,264 | ) | (45,497 | ) | ||||||||||||||||||
Class R | N/A | N/A | N/A | N/A | (1,274 | ) | (9,727 | ) | (2,329 | ) | (17,185 | ) | ||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | N/A | N/A | N/A | N/A | (15,264 | ) | (116,506 | ) | (35,591 | ) | (262,335 | ) | ||||||||||||||||||||
Net increase (decrease) | (56,552 | ) | $ | (56,552 | ) | 444 | $ | 444 | (20,091 | ) | $ | (153,006 | ) | (92,356 | ) | $ | (674,416 | ) |
* | Not shown due to rounding. |
2017 | SEMIANNUAL REPORT | 217 |
Table of Contents
Ivy International Core Equity Fund | Ivy Large Cap Growth Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 7,152 | $ | 135,513 | 14,706 | $ | 243,306 | 2,286 | $ | 46,074 | 6,888 | $ | 125,044 | ||||||||||||||||||||
Class B | 67 | 1,139 | 116 | 1,718 | 40 | 625 | 178 | 2,596 | ||||||||||||||||||||||||
Class C | 2,340 | 39,469 | 2,702 | 40,108 | 383 | 6,502 | 1,195 | 18,529 | ||||||||||||||||||||||||
Class E | 82 | 1,580 | 61 | 1,029 | 76 | 1,555 | 120 | 2,189 | ||||||||||||||||||||||||
Class I | 49,211 | 937,267 | 111,785 | 1,826,777 | 4,355 | 92,297 | 44,916 | 815,931 | ||||||||||||||||||||||||
Class N | 47,678 | 911,927 | 13,232 | 222,469 | 7,676 | 162,520 | 55 | 1,059 | ||||||||||||||||||||||||
Class R | 2,500 | 47,003 | 1,387 | 23,081 | 66 | 1,297 | 175 | 3,094 | ||||||||||||||||||||||||
Class T | 13 | 250 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | 6,575 | 124,967 | 9,861 | 164,850 | 93 | 1,921 | 397 | 7,412 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | — | — | 634 | 10,553 | — | — | 1,184 | 21,090 | ||||||||||||||||||||||||
Class B | — | — | 5 | 70 | — | — | 40 | 566 | ||||||||||||||||||||||||
Class C | — | — | 136 | 2,017 | — | — | 290 | 4,377 | ||||||||||||||||||||||||
Class E | — | — | 5 | 79 | — | — | 32 | 573 | ||||||||||||||||||||||||
Class I | — | — | 2,358 | 39,444 | — | — | 2,242 | 41,785 | ||||||||||||||||||||||||
Class N | — | — | 438 | 7,342 | — | — | 1 | 15 | ||||||||||||||||||||||||
Class R | — | — | 26 | 439 | — | — | 53 | 912 | ||||||||||||||||||||||||
Class T | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | — | — | 265 | 4,437 | — | — | 88 | 1,600 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (5,047 | ) | (95,297 | ) | (79,736 | ) | (1,272,835 | ) | (3,092 | ) | (62,686 | ) | (50,383 | ) | (877,941 | ) | ||||||||||||||||
Class B | (143 | ) | (2,394 | ) | (231 | ) | (3,397 | ) | (158 | ) | (2,490 | ) | (339 | ) | (4,943 | ) | ||||||||||||||||
Class C | (2,026 | ) | (34,121 | ) | (6,851 | ) | (101,345 | ) | (1,053 | ) | (17,956 | ) | (2,555 | ) | (39,850 | ) | ||||||||||||||||
Class E | (22 | ) | (422 | ) | (84 | ) | (1,396 | ) | (51 | ) | (1,050 | ) | (142 | ) | (2,608 | ) | ||||||||||||||||
Class I | (27,599 | ) | (526,520 | ) | (56,217 | ) | (939,946 | ) | (7,633 | ) | (162,536 | ) | (14,102 | ) | (271,049 | ) | ||||||||||||||||
Class N | (6,050 | ) | (117,272 | ) | (4,951 | ) | (83,535 | ) | (585 | ) | (12,752 | ) | (382 | ) | (7,035 | ) | ||||||||||||||||
Class R | (299 | ) | (5,682 | ) | (511 | ) | (8,507 | ) | (165 | ) | (3,236 | ) | (412 | ) | (7,313 | ) | ||||||||||||||||
Class T | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | (3,580 | ) | (68,422 | ) | (22,719 | ) | (381,809 | ) | (310 | ) | (6,426 | ) | (5,632 | ) | (105,205 | ) | ||||||||||||||||
Net increase (decrease) | 70,852 | $ | 1,348,985 | (13,583 | ) | $ | (205,051 | ) | 1,928 | $ | 43,659 | (16,093 | ) | $ | (269,172 | ) |
218 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Ivy Limited-Term Bond Fund | Ivy Managed International Opportunities Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 7,961 | $ | 86,356 | 29,542 | $ | 321,281 | 478 | $ | 5,341 | 1,052 | $ | 10,156 | ||||||||||||||||||||
Class B | 35 | 376 | 253 | 2,750 | 1 | 14 | 2 | 18 | ||||||||||||||||||||||||
Class C | 318 | 3,452 | 2,065 | 22,470 | 40 | 431 | 74 | 710 | ||||||||||||||||||||||||
Class E | 59 | 638 | 223 | 2,428 | — | — | — | — | ||||||||||||||||||||||||
Class I | 5,962 | 64,660 | 100,519 | 1,098,671 | 1,609 | 18,407 | 12,890 | 118,814 | ||||||||||||||||||||||||
Class N | 6,139 | 66,604 | 8,890 | 96,919 | 23 | 256 | N/A | N/A | ||||||||||||||||||||||||
Class R | 3 | 34 | 56 | 606 | 72 | 823 | 9 | 85 | ||||||||||||||||||||||||
Class Y | 303 | 3,283 | 960 | 10,469 | 3 | 37 | 8 | 82 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | 388 | 4,205 | 1,176 | 12,787 | — | — | 73 | 721 | ||||||||||||||||||||||||
Class B | 3 | 30 | 8 | 83 | — | — | 1 | 5 | ||||||||||||||||||||||||
Class C | 30 | 323 | 75 | 816 | — | — | 2 | 20 | ||||||||||||||||||||||||
Class E | 4 | 41 | 7 | 76 | — | — | 1 | 5 | ||||||||||||||||||||||||
Class I | 741 | 8,036 | 1,174 | 12,759 | — | — | 138 | 1,360 | ||||||||||||||||||||||||
Class N | 81 | 874 | 127 | 1,375 | N/A | — | N/A | N/A | ||||||||||||||||||||||||
Class R | — | * | 1 | — | * | 4 | — | — | — | — | ||||||||||||||||||||||
Class Y | 11 | 117 | 26 | 280 | — | — | 1 | 6 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (14,048 | ) | (152,355 | ) | (127,140 | ) | (1,387,340 | ) | (737 | ) | (8,247 | ) | (14,121 | ) | (129,980 | ) | ||||||||||||||||
Class B | (240 | ) | (2,598 | ) | (619 | ) | (6,734 | ) | (21 | ) | (231 | ) | (66 | ) | (630 | ) | ||||||||||||||||
Class C | (1,749 | ) | (18,962 | ) | (5,887 | ) | (63,986 | ) | (41 | ) | (450 | ) | (169 | ) | (1,603 | ) | ||||||||||||||||
Class E | (88 | ) | (957 | ) | (143 | ) | (1,554 | ) | — | — | — | — | ||||||||||||||||||||
Class I | (14,911 | ) | (161,732 | ) | (26,190 | ) | (284,291 | ) | (1,611 | ) | (18,097 | ) | (2,983 | ) | (29,829 | ) | ||||||||||||||||
Class N | (6,225 | ) | (67,500 | ) | (1,126 | ) | (12,260 | ) | — | — | N/A | N/A | ||||||||||||||||||||
Class R | (6 | ) | (61 | ) | (58 | ) | (629 | ) | (59 | ) | (681 | ) | (1 | ) | (10 | ) | ||||||||||||||||
Class Y | (566 | ) | (6,140 | ) | (993 | ) | (10,770 | ) | (11 | ) | (124 | ) | (17 | ) | (163 | ) | ||||||||||||||||
Net decrease | (15,795 | ) | $ | (171,275 | ) | (17,055 | ) | $ | (183,790 | ) | (254 | ) | $ | (2,521 | ) | (3,106 | ) | $ | (30,233 | ) |
* | Not shown due to rounding. |
2017 | SEMIANNUAL REPORT | 219 |
Table of Contents
Ivy Micro Cap Growth Fund | Ivy Mid Cap Growth Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: |
| |||||||||||||||||||||||||||||||
Class A | 191 | $ | 4,617 | 1,043 | $ | 22,888 | 1,635 | $ | 35,570 | 4,301 | $ | 85,370 | ||||||||||||||||||||
Class B | — | * | 1 | 9 | 187 | 27 | 487 | 121 | 1,998 | |||||||||||||||||||||||
Class C | 15 | 333 | 59 | 1,262 | 368 | 6,941 | 1,159 | 20,270 | ||||||||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | 33 | 700 | 88 | 1,727 | ||||||||||||||||||||||||
Class I | 403 | 10,012 | 3,757 | 79,041 | 7,114 | 166,975 | 23,407 | 493,522 | ||||||||||||||||||||||||
Class N | 52 | 1,312 | 42 | 972 | 3,474 | 80,660 | 2,779 | 59,438 | ||||||||||||||||||||||||
Class R | 1 | 29 | 7 | 164 | 224 | 4,796 | 603 | 11,815 | ||||||||||||||||||||||||
Class Y | 2 | 42 | 15 | 345 | 1,035 | 23,612 | 3,066 | 63,584 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | — | — | 47 | 1,127 | — | — | 884 | 17,805 | ||||||||||||||||||||||||
Class B | — | — | 1 | 21 | — | — | 45 | 745 | ||||||||||||||||||||||||
Class C | — | — | 5 | 102 | — | — | 484 | 8,498 | ||||||||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | 15 | 297 | ||||||||||||||||||||||||
Class I | — | — | 37 | 904 | — | — | 1,997 | 42,946 | ||||||||||||||||||||||||
Class N | — | — | 1 | 25 | — | — | 98 | 2,118 | ||||||||||||||||||||||||
Class R | — | — | — | * | 4 | — | — | 89 | 1,761 | |||||||||||||||||||||||
Class Y | — | — | 1 | 14 | — | — | 491 | 10,288 | ||||||||||||||||||||||||
Shares redeemed: |
| |||||||||||||||||||||||||||||||
Class A | (459 | ) | (11,125 | ) | (4,768 | ) | (97,812 | ) | (3,593 | ) | (78,690 | ) | (26,110 | ) | (515,263 | ) | ||||||||||||||||
Class B | (11 | ) | (259 | ) | (21 | ) | (440 | ) | (128 | ) | (2,286 | ) | (335 | ) | (5,511 | ) | ||||||||||||||||
Class C | (48 | ) | (1,104 | ) | (122 | ) | (2,500 | ) | (1,715 | ) | (32,529 | ) | (5,687 | ) | (99,198 | ) | ||||||||||||||||
Class E | N/A | N/A | N/A | N/A | (32 | ) | (699 | ) | (71 | ) | (1,379 | ) | ||||||||||||||||||||
Class I | (558 | ) | (13,867 | ) | (1,409 | ) | (32,361 | ) | (8,592 | ) | (199,781 | ) | (46,039 | ) | (978,151 | ) | ||||||||||||||||
Class N | (20 | ) | (517 | ) | (67 | ) | (1,479 | ) | (932 | ) | (21,958 | ) | (3,774 | ) | (78,938 | ) | ||||||||||||||||
Class R | (1 | ) | (15 | ) | (11 | ) | (227 | ) | (676 | ) | (14,426 | ) | (1,783 | ) | (34,897 | ) | ||||||||||||||||
Class Y | (1 | ) | (14 | ) | (20 | ) | (454 | ) | (3,830 | ) | (87,315 | ) | (12,666 | ) | (261,007 | ) | ||||||||||||||||
Net decrease | (434 | ) | $ | (10,555 | ) | (1,394 | ) | $ | (28,217 | ) | (5,588 | ) | $ | (117,943 | ) | (56,838 | ) | $ | (1,152,162 | ) |
* | Not shown due to rounding. |
220 | SEMIANNUAL REPORT | 2017 |
Table of Contents
Ivy Mid Cap Income Opportunities Fund | Ivy Municipal Bond Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: |
| |||||||||||||||||||||||||||||||
Class A | 661 | $ | 8,323 | 10,872 | $ | 127,692 | 336 | $ | 4,011 | 2,575 | $ | 31,330 | ||||||||||||||||||||
Class B | N/A | N/A | N/A | N/A | 4 | 45 | 31 | 379 | ||||||||||||||||||||||||
Class C | 119 | 1,489 | 1,359 | 16,315 | 39 | 465 | 378 | 4,556 | ||||||||||||||||||||||||
Class E | 204 | 2,562 | 202 | 2,449 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class I | 3,300 | 41,657 | 17,184 | 203,633 | 1,037 | 12,387 | 10,759 | 131,853 | ||||||||||||||||||||||||
Class N | 4,057 | 50,855 | 395 | 4,785 | 22 | 257 | N/A | N/A | ||||||||||||||||||||||||
Class R | 203 | 2,553 | 204 | 2,459 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | 365 | 4,590 | 1,097 | 13,142 | 1 | 6 | 15 | 178 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | 28 | 358 | 75 | 912 | 67 | 795 | 168 | 2,023 | ||||||||||||||||||||||||
Class B | N/A | N/A | N/A | N/A | 1 | 14 | 2 | 25 | ||||||||||||||||||||||||
Class C | — | — | 4 | 45 | 16 | 189 | 31 | 375 | ||||||||||||||||||||||||
Class E | — | — | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class I | 64 | 817 | 105 | 1,286 | 109 | 1,307 | 165 | 1,979 | ||||||||||||||||||||||||
Class N | 18 | 228 | 1 | 16 | — | * | — | * | N/A | N/A | ||||||||||||||||||||||
Class R | — | — | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | 1 | 10 | 2 | 30 | — | * | 2 | 1 | 9 | |||||||||||||||||||||||
Shares redeemed: |
| |||||||||||||||||||||||||||||||
Class A | (2,210 | ) | (27,850 | ) | (10,302 | ) | (118,342 | ) | (962 | ) | (11,479 | ) | (12,106 | ) | (147,889 | ) | ||||||||||||||||
Class B | N/A | N/A | N/A | N/A | (21 | ) | (250 | ) | (58 | ) | (690 | ) | ||||||||||||||||||||
Class C | (343 | ) | (4,287 | ) | (563 | ) | (6,964 | ) | (408 | ) | (4,856 | ) | (894 | ) | (10,693 | ) | ||||||||||||||||
Class E | (202 | ) | (2,546 | ) | (201 | ) | (2,429 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Class I | (4,839 | ) | (60,930 | ) | (4,269 | ) | (52,023 | ) | (1,602 | ) | (19,111 | ) | (3,507 | ) | (41,913 | ) | ||||||||||||||||
Class N | (496 | ) | (6,262 | ) | (264 | ) | (3,173 | ) | — | — | N/A | N/A | ||||||||||||||||||||
Class R | (202 | ) | (2,538 | ) | (201 | ) | (2,423 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Class Y | (524 | ) | (6,569 | ) | (908 | ) | (10,844 | ) | (5 | ) | (59 | ) | (31 | ) | (365 | ) | ||||||||||||||||
Net increase (decrease) | 204 | $ | 2,460 | 14,792 | $ | 176,566 | (1,366 | ) | $ | (16,277 | ) | (2,471 | ) | $ | (28,843 | ) |
* | Not shown due to rounding. |
2017 | SEMIANNUAL REPORT | 221 |
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Ivy Municipal High Income Fund | Ivy Small Cap Core Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: |
| |||||||||||||||||||||||||||||||
Class A | 2,788 | $ | 14,254 | 14,476 | $ | 76,651 | 891 | $ | 15,786 | 6,638 | $ | 109,678 | ||||||||||||||||||||
Class B | 15 | 76 | 138 | 727 | 11 | 166 | 210 | 2,899 | ||||||||||||||||||||||||
Class C | 721 | 3,692 | 4,139 | 21,899 | 314 | 4,820 | 1,290 | 19,175 | ||||||||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | — | — | ||||||||||||||||||||||||
Class I | 13,945 | 71,301 | 55,943 | 294,333 | 5,096 | 97,754 | 14,323 | 252,978 | ||||||||||||||||||||||||
Class N | 54 | 274 | N/A | N/A | 2,125 | 40,272 | 310 | 5,711 | ||||||||||||||||||||||||
Class R | N/A | N/A | N/A | N/A | 283 | 5,012 | 306 | 5,128 | ||||||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | 14 | 250 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 959 | 4,911 | 1,433 | 7,432 | 232 | 4,323 | 1,028 | 18,061 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | 678 | 3,466 | 2,131 | 11,200 | — | — | 477 | 8,343 | ||||||||||||||||||||||||
Class B | 20 | 104 | 49 | 260 | — | — | 14 | 197 | ||||||||||||||||||||||||
Class C | 375 | 1,919 | 1,047 | 5,501 | — | — | 70 | 1,065 | ||||||||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | — | * | 8 | |||||||||||||||||||||||
Class I | 1,574 | 8,051 | 4,177 | 21,953 | — | — | 375 | 7,059 | ||||||||||||||||||||||||
Class N | — | * | — | * | N/A | N/A | — | — | 13 | 255 | ||||||||||||||||||||||
Class R | N/A | N/A | N/A | N/A | — | — | 13 | 218 | ||||||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | 50 | 257 | 128 | 672 | — | — | 36 | 650 | ||||||||||||||||||||||||
Shares redeemed: |
| |||||||||||||||||||||||||||||||
Class A | (10,135 | ) | (51,818 | ) | (44,293 | ) | (233,288 | ) | (1,734 | ) | (30,772 | ) | (9,258 | ) | (145,421 | ) | ||||||||||||||||
Class B | (254 | ) | (1,301 | ) | (610 | ) | (3,184 | ) | (120 | ) | (1,742 | ) | (88 | ) | (1,199 | ) | ||||||||||||||||
Class C | (5,561 | ) | (28,436 | ) | (14,234 | ) | (74,260 | ) | (326 | ) | (5,011 | ) | (350 | ) | (5,103 | ) | ||||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | — | — | ||||||||||||||||||||||||
Class I | (31,755 | ) | (162,380 | ) | (71,660 | ) | (372,825 | ) | (3,257 | ) | (62,353 | ) | (2,984 | ) | (54,387 | ) | ||||||||||||||||
Class N | — | * | — | * | N/A | N/A | (241 | ) | (4,700 | ) | (89 | ) | (1,582 | ) | ||||||||||||||||||
Class R | N/A | N/A | N/A | N/A | (118 | ) | (2,126 | ) | (148 | ) | (2,554 | ) | ||||||||||||||||||||
Class T | N/A | N/A | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | (1,118 | ) | (5,722 | ) | (2,623 | ) | (13,715 | ) | (457 | ) | (8,456 | ) | (384 | ) | (6,827 | ) | ||||||||||||||||
Net increase (decrease) | (27,644 | ) | $ | (141,352 | ) | (49,759 | ) | $ | (256,644 | ) | 2,713 | $ | 53,223 | 11,802 | $ | 214,352 |
* | Not shown due to rounding. |
222 | SEMIANNUAL REPORT | 2017 |
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Ivy Small Cap Growth Fund | Ivy Tax-Managed Equity Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 1,606 | $ | 28,482 | 3,412 | $ | 55,054 | 199 | $ | 4,391 | 856 | $ | 16,555 | ||||||||||||||||||||
Class B | 20 | 263 | 67 | 840 | 46 | 982 | 7 | 134 | ||||||||||||||||||||||||
Class C | 332 | 4,885 | 1,006 | 13,745 | 33 | 684 | 84 | 1,552 | ||||||||||||||||||||||||
Class E | 35 | 616 | 117 | 1,900 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class I | 3,295 | 74,860 | 10,438 | 209,067 | 485 | 10,847 | 4,393 | 82,757 | ||||||||||||||||||||||||
Class N | 1,767 | 39,715 | 2,382 | 47,141 | 14 | 306 | N/A | N/A | ||||||||||||||||||||||||
Class R | 327 | 5,742 | 710 | 11,364 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class T | 14 | 250 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | 704 | 15,232 | 2,260 | 44,153 | — | * | 2 | 2 | 45 | |||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | — | — | 829 | 13,748 | — | — | — | — | ||||||||||||||||||||||||
Class B | — | — | 47 | 591 | — | — | — | — | ||||||||||||||||||||||||
Class C | — | — | 822 | 11,322 | — | — | — | — | ||||||||||||||||||||||||
Class E | — | — | 26 | 434 | N/A | �� | N/A | N/A | N/A | |||||||||||||||||||||||
Class I | — | — | 537 | 11,335 | — | — | — | — | ||||||||||||||||||||||||
Class N | — | — | 136 | 2,876 | N/A | — | N/A | N/A | ||||||||||||||||||||||||
Class R | — | — | 154 | 2,511 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class T | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | — | — | 299 | 5,994 | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (1,896 | ) | (33,769 | ) | (12,503 | ) | (195,128 | ) | (145 | ) | (3,182 | ) | (4,804 | ) | (89,692 | ) | ||||||||||||||||
Class B | (87 | ) | (1,169 | ) | (172 | ) | (2,152 | ) | (48 | ) | (1,017 | ) | (18 | ) | (333 | ) | ||||||||||||||||
Class C | (1,076 | ) | (15,911 | ) | (2,787 | ) | (37,583 | ) | (24 | ) | (491 | ) | (112 | ) | (2,067 | ) | ||||||||||||||||
Class E | (33 | ) | (576 | ) | (77 | ) | (1,244 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Class I | (1,979 | ) | (45,214 | ) | (5,805 | ) | (117,165 | ) | (518 | ) | (11,529 | ) | (1,228 | ) | (24,483 | ) | ||||||||||||||||
Class N | (338 | ) | (7,729 | ) | (626 | ) | (12,913 | ) | — | * | — | N/A | N/A | |||||||||||||||||||
Class R | (372 | ) | (6,531 | ) | (924 | ) | (14,707 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Class T | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | (1,278 | ) | (27,494 | ) | (7,700 | ) | (152,198 | ) | — | * | (3 | ) | (8 | ) | (160 | ) | ||||||||||||||||
Net increase (decrease) | 1,041 | $ | 31,652 | (7,352 | ) | $ | (101,015 | ) | 42 | $ | 990 | (828 | ) | $ | (15,692 | ) |
* | Not shown due to rounding. |
2017 | SEMIANNUAL REPORT | 223 |
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Ivy Value Fund | ||||||||||||||||
Six months ended 9-30-17 (Unaudited) | Year ended 3-31-17 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares issued from sale of shares: |
| |||||||||||||||
Class A | 306 | $ | 7,011 | 1,737 | $ | 36,272 | ||||||||||
Class B | 7 | 141 | 39 | 778 | ||||||||||||
Class C | 36 | 802 | 219 | 4,574 | ||||||||||||
Class E | — | — | — | — | ||||||||||||
Class I | 996 | 22,877 | 9,872 | 198,098 | ||||||||||||
Class N | 7,121 | 161,428 | 366 | 7,470 | ||||||||||||
Class R | 1 | 15 | — | * | 6 | |||||||||||
Class Y | 1 | 17 | 89 | 1,825 | ||||||||||||
Shares issued in reinvestment of distributions to shareholders: |
| |||||||||||||||
Class A | 7 | 156 | 174 | 3,544 | ||||||||||||
Class B | — | — | 2 | 38 | ||||||||||||
Class C | — | — | 14 | 283 | ||||||||||||
Class E | — | * | 1 | — | * | 4 | ||||||||||
Class I | 32 | 742 | 116 | 2,516 | ||||||||||||
Class N | 30 | 687 | 9 | 191 | ||||||||||||
Class R | — | * | — | * | — | * | — | |||||||||
Class Y | — | * | 1 | 2 | 36 | |||||||||||
Shares redeemed: |
| |||||||||||||||
Class A | (698 | ) | (15,946 | ) | (9,933 | ) | (196,212 | ) | ||||||||
Class B | (57 | ) | (1,214 | ) | (72 | ) | (1,405 | ) | ||||||||
Class C | (168 | ) | (3,707 | ) | (272 | ) | (5,486 | ) | ||||||||
Class E | — | — | — | — | ||||||||||||
Class I | (1,602 | ) | (36,894 | ) | (2,166 | ) | (46,566 | ) | ||||||||
Class N | (622 | ) | (14,504 | ) | (67 | ) | (1,403 | ) | ||||||||
Class R | — | — | (1 | ) | (16 | ) | ||||||||||
Class Y | (4 | ) | (94 | ) | (141 | ) | (3,061 | ) | ||||||||
Net increase (decrease) | 5,386 | $ | 121,519 | (13 | ) | $ | 1,486 |
* | Not shown due to rounding. |
12. | COMMITMENTS ($ amounts in thousands) |
Bridge loan commitments may obligate a Fund to furnish temporary financing to a borrower until permanent financing can be arranged. 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, 2017, there were no outstanding bridge loan commitments.
13. | FEDERAL INCOME TAX MATTERS ($ amounts in thousands) |
For Federal income tax purposes, cost of investments owned at September 30, 2017 and the related unrealized appreciation (depreciation) were as follows:
Fund | Cost of Investments | Gross Appreciation | Gross Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Ivy Advantus Bond Fund | $ | 956,596 | $ | 17,830 | $ | 4,824 | $ | 13,006 | ||||||||
Ivy Core Equity Fund | 722,477 | 176,019 | 3,971 | 172,048 | ||||||||||||
Ivy Cundill Global Value Fund | 165,679 | 44,096 | 9,787 | 34,309 | ||||||||||||
Ivy Dividend Opportunities Fund | 279,529 | 86,977 | 2,479 | 84,498 | ||||||||||||
Ivy Emerging Markets Equity Fund | 1,472,698 | 406,572 | 11,395 | 395,177 | ||||||||||||
Ivy European Opportunities Fund | 220,208 | 45,601 | 1,087 | 44,514 | ||||||||||||
Ivy Global Bond Fund | 197,343 | 5,219 | 6,522 | (1,303 | ) | |||||||||||
Ivy Global Equity Income Fund | 255,015 | 50,902 | 1,248 | 49,654 |
224 | SEMIANNUAL REPORT | 2017 |
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Fund | Cost of Investments | Gross Appreciation | Gross Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Ivy Global Growth Fund | $ | 360,651 | $ | 90,859 | $ | 3,961 | $ | 86,898 | ||||||||
Ivy Global Income Allocation Fund | 655,089 | 64,603 | 31,130 | 33,473 | ||||||||||||
Ivy Government Money Market Fund | 166,874 | — | — | — | ||||||||||||
Ivy High Income Fund | 4,594,325 | 148,548 | 382,415 | (233,867 | ) | |||||||||||
Ivy International Core Equity Fund | 5,872,138 | 889,380 | 74,956 | 814,424 | ||||||||||||
Ivy Large Cap Growth Fund | 1,157,824 | 704,488 | 2,266 | 702,222 | ||||||||||||
Ivy Limited-Term Bond Fund | 1,438,671 | 9,671 | 5,473 | 4,198 | ||||||||||||
Ivy Managed International Opportunities Fund | 173,986 | 32,484 | — | 32,484 | ||||||||||||
Ivy Micro Cap Growth Fund | 117,661 | 51,087 | 3,951 | 47,136 | ||||||||||||
Ivy Mid Cap Growth Fund | 1,736,852 | 727,620 | 114,909 | 612,711 | ||||||||||||
Ivy Mid Cap Income Opportunities Fund | 288,474 | 52,607 | 3,445 | 49,162 | ||||||||||||
Ivy Municipal Bond Fund | 165,648 | 9,937 | 313 | 9,624 | ||||||||||||
Ivy Municipal High Income Fund | 871,753 | 70,223 | 38,027 | 32,196 | ||||||||||||
Ivy Small Cap Core Fund | 505,173 | 113,802 | 2,900 | 110,902 | ||||||||||||
Ivy Small Cap Growth Fund | 807,356 | 328,457 | 14,209 | 314,248 | ||||||||||||
Ivy Tax-Managed Equity Fund | 93,002 | 37,839 | 178 | 37,661 | ||||||||||||
Ivy Value Fund | 400,761 | 76,216 | 16,590 | 59,626 |
For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2017 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 Advantus Bond Fund | $ | 280 | $ | — | $ | — | $ | 5,217 | $ | — | ||||||||||
Ivy Core Equity Fund | 271 | 18,228 | — | — | — | |||||||||||||||
Ivy Cundill Global Value Fund | 957 | — | — | — | — | |||||||||||||||
Ivy Dividend Opportunities Fund | 2,645 | 5,447 | — | — | — | |||||||||||||||
Ivy Emerging Markets Equity Fund | — | — | — | — | 136 | |||||||||||||||
Ivy European Opportunities Fund | 524 | — | — | — | — | |||||||||||||||
Ivy Global Bond Fund | 234 | — | — | — | — | |||||||||||||||
Ivy Global Equity Income Fund | 673 | — | — | — | — | |||||||||||||||
Ivy Global Growth Fund | — | 1,025 | — | — | — | |||||||||||||||
Ivy Global Income Allocation Fund | 2,112 | — | — | — | — | |||||||||||||||
Ivy Government Money Market Fund | 26 | — | — | — | — | |||||||||||||||
Ivy High Income Fund | 1,380 | — | — | — | — | |||||||||||||||
Ivy International Core Equity Fund | 12,917 | — | — | — | — | |||||||||||||||
Ivy Large Cap Growth Fund | 1,035 | 36,410 | — | — | — | |||||||||||||||
Ivy Limited-Term Bond Fund | 429 | — | — | — | — | |||||||||||||||
Ivy Managed International Opportunities Fund | — | — | — | — | 71 | |||||||||||||||
Ivy Micro Cap Growth Fund | — | — | — | 21 | 533 | |||||||||||||||
Ivy Mid Cap Growth Fund | — | 96,977 | — | — | 7,156 | |||||||||||||||
Ivy Mid Cap Income Opportunities Fund | 345 | — | — | — | — | |||||||||||||||
Ivy Municipal Bond Fund | 64 | — | — | — | — | |||||||||||||||
Ivy Municipal High Income Fund | 226 | 719 | — | — | — | |||||||||||||||
Ivy Small Cap Core Fund | 8,469 | 5,048 | — | — | — | |||||||||||||||
Ivy Small Cap Growth Fund | — | 76,821 | — | — | 2,104 | |||||||||||||||
Ivy Tax-Managed Equity Fund | — | — | — | — | 70 | |||||||||||||||
Ivy Value Fund | 396 | 2,738 | — | — | — |
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.
2017 | SEMIANNUAL REPORT | 225 |
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The tax character of dividends and distributions paid during the two fiscal years ended March 31, 2017 and 2016 were as follows:
March 31, 2017 | March 31, 2016 | |||||||||||||||
Fund | Distributed Ordinary Income(1) | Distributed Long-Term Capital Gains | Distributed Ordinary Income(1) | Distributed Long-Term Capital Gains | ||||||||||||
Ivy Advantus Bond Fund | $ | 20,119 | $ | — | $ | 18,123 | $ | — | ||||||||
Ivy Core Equity Fund | 5,259 | 30,772 | 14,021 | 62,572 | ||||||||||||
Ivy Cundill Global Value Fund | 1,105 | — | 1,992 | — | ||||||||||||
Ivy Dividend Opportunities Fund | 6,010 | 13,933 | 3,493 | 30,139 | ||||||||||||
Ivy Emerging Markets Equity Fund | — | — | 4,983 | — | ||||||||||||
Ivy European Opportunities Fund | 2,973 | — | 948 | — | ||||||||||||
Ivy Global Bond Fund | 3,572 | — | 6,423 | — | ||||||||||||
Ivy Global Equity Income Fund | 12,392 | — | 9,054 | 8,438 | ||||||||||||
Ivy Global Growth Fund | — | — | 573 | 11,167 | ||||||||||||
Ivy Global Income Allocation Fund | 28,894 | — | 31,144 | — | ||||||||||||
Ivy Government Money Market Fund | 62 | — | 38 | — | ||||||||||||
Ivy High Income Fund | 346,065 | — | 487,204 | — | ||||||||||||
Ivy International Core Equity Fund | 77,682 | — | 42,519 | — | ||||||||||||
Ivy Large Cap Growth Fund | — | 76,259 | — | 109,373 | ||||||||||||
Ivy Limited-Term Bond Fund | 30,357 | — | 23,128 | — | ||||||||||||
Ivy Managed International Opportunities Fund | 2,152 | — | 1,484 | — | ||||||||||||
Ivy Micro Cap Growth Fund | — | 2,235 | — | 7,628 | ||||||||||||
Ivy Mid Cap Growth Fund | — | 92,513 | 47,509 | 339,017 | ||||||||||||
Ivy Mid Cap Income Opportunities Fund | 2,452 | — | 1,322 | — | ||||||||||||
Ivy Municipal Bond Fund | 5,149 | — | 4,224 | — | ||||||||||||
Ivy Municipal High Income Fund | 54,485 | — | 53,839 | — | ||||||||||||
Ivy Small Cap Core Fund | 10,791 | 7,727 | — | 33,901 | ||||||||||||
Ivy Small Cap Growth Fund | — | 51,252 | 79 | 130,985 | ||||||||||||
Ivy Tax-Managed Equity Fund | — | — | 350 | 1,745 | ||||||||||||
Ivy Value Fund | 6,858 | — | 5,446 | 28,458 |
(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, 2017 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, 2017:
Pre-Enactment | Post-Enactment | |||||||||||||||
Fund | 2018 | 2019 | Short-Term Capital Loss Carryover | Long-Term Capital Loss Carryover | ||||||||||||
Ivy Advantus Bond Fund | $ | 12,355 | $ | 1,704 | $ | — | $ | — | ||||||||
Ivy Core Equity Fund | — | — | — | — | ||||||||||||
Ivy Cundill Global Value Fund | 6,489 | — | — | 16,444 | ||||||||||||
Ivy Dividend Opportunities Fund | — | — | — | — | ||||||||||||
Ivy Emerging Markets Equity Fund | 606 | — | 104,504 | — | ||||||||||||
Ivy European Opportunities Fund | 115,739 | — | 17,377 | 4,502 | ||||||||||||
Ivy Global Bond Fund | — | — | 3,450 | 9,382 |
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Pre-Enactment | Post-Enactment | |||||||||||||||
Fund | 2018 | 2019 | Short-Term Capital Loss Carryover | Long-Term Capital Loss Carryover | ||||||||||||
Ivy Global Equity Income Fund | $ | — | $ | — | $ | 22,747 | $ | 2,488 | ||||||||
Ivy Global Growth Fund | — | — | — | — | ||||||||||||
Ivy Global Income Allocation Fund | 5,466 | — | 27,129 | 10,169 | ||||||||||||
Ivy Government Money Market Fund | — | — | — | — | ||||||||||||
Ivy High Income Fund | — | — | 34,237 | 587,254 | ||||||||||||
Ivy International Core Equity Fund | — | — | 152,517 | 2,325 | ||||||||||||
Ivy Large Cap Growth Fund | — | — | — | — | ||||||||||||
Ivy Limited-Term Bond Fund | — | — | 11,064 | 6,163 | ||||||||||||
Ivy Managed International Opportunities Fund | 297 | 3,709 | — | — | ||||||||||||
Ivy Micro Cap Growth Fund | — | — | — | — | ||||||||||||
Ivy Mid Cap Growth Fund | — | — | — | — | ||||||||||||
Ivy Mid Cap Income Opportunities Fund | — | — | 3,805 | 1,173 | ||||||||||||
Ivy Municipal Bond Fund | 84 | 146 | — | 2,269 | ||||||||||||
Ivy Municipal High Income Fund | — | — | — | — | ||||||||||||
Ivy Small Cap Core Fund | — | — | — | — | ||||||||||||
Ivy Small Cap Growth Fund | — | — | — | — | ||||||||||||
Ivy Tax-Managed Equity Fund | — | — | 1,471 | — | ||||||||||||
Ivy Value Fund | — | — | — | — |
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.
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RENEWAL OF INVESTMENT MANAGEMENT AGREEMENTS | Ivy Funds |
At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 15 and 16, 2017, 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 Advantus Bond Fund and Ivy Advantus 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 LaSalle Global Real Estate Fund and Ivy LaSalle Global Risk-Managed Real Estate Fund and Ivy Apollo Multi-Asset Income Fund); and |
• | Pictet Asset Management Limited and Pictet Asset Management (Singapore) Pte Ltd. (with respect to the Ivy Emerging Markets Local Currency Debt Fund) |
• | Pictet Asset Management Limited and Pictet Asset Management SA (Ivy Targeted Return Bond Fund) |
• | Apollo Credit Management, LLC (Ivy Apollo Multi–Asset Income Fund and Ivy Apollo Strategic Income 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 and the Subadvisers. 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 2017. They further reviewed these materials among themselves, with their independent legal counsel and the independent fee consultant, and with the other Board members at executive sessions of the Independent Trustees at the August 15th and 16th 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 by independent legal counsel to the Independent Trustees.
The Board also took into account the report from its Investment Oversight Committee (the “IOC”), in light of that committee’s duties to assist the Board in the 15(c) process. The IOC had reported to the Board on its review of the overall performance of the Funds, IICO’s investment risk management function, and the proposed and on-going changes IICO has been considering for itself, the Trust and the overall fund complex. As such, the Board examined all of IICO’s activities (both taken and proposed) in light of the Funds’ performance and expense structure, as well as the proposed overall rationalization of the fund complex, which is designed to provide economies of scale to the Funds’ shareholders, reduce the Funds’ expenses and enhance the performance of the Funds, particularly in the context of substantial industry change and regulatory developments.
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,
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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 each entity 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, an affiliate of IICO, provides the Funds. 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 nor 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 significant number of initiatives that IICO is undertaking to seek to rationalize the fund complex, reduce expenses and enhance performance.
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
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; |
2. | Management fees and expenses in the context of performance; |
3. | Product category expenses, including peers; |
4. | Profit margins of IICO’s parent from supplying such services; |
5. | Subadviser and institutional fee analyses; and |
6. | Possible economies of scale as a Fund grows larger. |
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The following summarizes the findings of the independent fee consultant retained by the Independent Trustees.
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 the 36 months ended March 31, 2017, approximately 9% of the funds within the Waddell & Reed Fund Complex (including the Funds) were in the top quartile of performance and 33% of such funds were in the top two quartiles of performance, and that short-term performance of such funds were showing signs of improvement. Specifically, the report noted that 42% of the funds were in the top two quartiles in the one-year period, and that 32% of all such funds had improving performance in their one-year period. 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.
The report further indicated that total expenses of the Funds, on average, were 2% over the average total expenses of their respective Broadridge Expense Group peers and 3% below the average total expenses for their Broadridge Expense Universes. The management fees for the funds were 1% over the average management fees of their respective Broadridge Expense Group peers and 3% over the average management fees for their Broadridge Expense Universes.
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 through management fee breakpoints, decline in transfer agency expenses, decline in custody contract rates and declines in other non-management expenses.
The report also noted that the overall profitability of IICO’s parent 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 time in board mergers and fund mergers, which could help drive down expenses for shareholders.
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 are generally similar.
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.
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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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THE IVY FUNDS FAMILY |
DOMESTIC EQUITY FUNDS
Ivy Core Equity Fund
Ivy Dividend Opportunities Fund
Ivy Large Cap Growth Fund
Ivy Micro Cap Growth Fund
Ivy Mid Cap Growth Fund
Ivy Mid Cap Income Opportunities Fund
Ivy Small Cap Core Fund
Ivy Small Cap Growth Fund
Ivy Tax-Managed Equity Fund
Ivy Value Fund
GLOBAL/INTERNATIONAL FUNDS
Ivy Cundill Global Value Fund
Ivy Emerging Markets Equity Fund
Ivy Pictet 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 IG International Small Cap Fund
Ivy International Core Equity Fund
Ivy Managed International Opportunities Fund
INDEX FUNDS
Ivy ProShares S&P 500 Dividend Aristocrats Index Fund
Ivy ProShares Russell 2000 Dividend Growers Index Fund
Ivy ProShares Interest Rate Hedged High Yield Index Fund
Ivy ProShares S&P 500 Bond Index Fund
Ivy ProShares MSCI ACWI Index Fund
SPECIALITY FUNDS
Ivy Apollo Multi-Asset Income Fund
Ivy Asset Strategy Fund
Ivy Balanced Fund
Ivy Energy Fund
Ivy Natural Resources Fund
Ivy LaSalle Global Real Estate Fund
Ivy LaSalle Global Risk-Managed Real Estate Fund
Ivy Advantus Real Estate Securities Fund
Ivy Science and Technology Fund
FIXED INCOME FUNDS
Ivy Apollo Strategic Income Fund
Ivy Advantus Bond Fund
Ivy California Municipal High Income Fund
Ivy Crossover Credit Fund
Ivy Global Bond Fund
Ivy Government Money Market Fund
Ivy High Income Fund
Ivy Limited-Term Bond Fund
Ivy Municipal Bond Fund
Ivy Municipal High Income Fund
Ivy Pictet Targeted Return Bond Fund
Ivy PineBridge High Yield 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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SEMIANN-IVYFUNDS (9-17)
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ITEM 2. | CODE OF ETHICS |
Required in annual report only.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
Required in annual report only.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Required in annual report only.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
Not applicable.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
See Item 1 Shareholder Report.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, have |
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concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant’s management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. |
(b) | There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant’s second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. | EXHIBITS. |
(a) (1) Required in annual report only.
(a) (2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).
Attached hereto as Exhibit 99.CERT.
(b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)).
Attached hereto as Exhibit 99.906CERT.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
IVY FUNDS
(Registrant)
By | /s/Jennifer K. Dulski | |
Jennifer K. Dulski, Secretary |
Date: December 7, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | /s/Philip J. Sanders | |
Philip J. Sanders, President and Principal Executive Officer |
Date: December 7, 2017
By | /s/Joseph W. Kauten | |
Joseph W. Kauten, Vice President and Principal Financial Officer |
Date: December 7, 2017