FORM OF PROXY

                             IVY SOUTH AMERICA FUND

                                   a series of

                                    IVY FUND

                           PROXY SOLICITED BY TRUSTEES

         The  undersigned,  having received Notice of the June ___, 2000 Special
Meeting of Shareholders of Ivy South America Fund (the "Fund"),  a series of Ivy
Fund (the "Trust"), and the related Proxy Statement/Prospectus,  hereby appoints
C. William Ferris,  Keith J. Carlson,  and Paula K. Wolfe,  and each of them, as
proxies,  with full power of  substitution  and  revocation,  to  represent  the
undersigned  and to vote all shares of the Fund that the undersigned is entitled
to vote at the Special  Meeting of  Shareholders  of the Fund to be held on June
___, 2000 and any adjournments thereof.

PLEASE INDICATE VOTE ON OPPOSITE SIDE OF CARD.

UNLESS OTHERWISE SPECIFIED, THIS PROXY WILL BE VOTED IN FAVOR OF ITEM 1.

                                                 Dated: __________________, 2000

                                                 Please  sign  name or names as
                                                 appearing on proxy and return
                                                 promptly inthe enclosed
                                                 postage-paid envelope.
                                                 If signing as a representative,
                                                 please include capacity.

[Name, address]

- ------------------------------
Signature(s) of shareholer(s)

[REVERSE SIDE OF CARD]

Please indicate your vote by filling in the appropriate box below, using blue or
black ink or dark  pencil  (do not use red  ink).  This  proxy  will be voted in
accordance with your  specifications.  If no  specification  is made, this proxy
will be voted in favor of Item 1.

                                                      For   Against   Abstain

1.   Approval of the Agreement and Plan
     of Reorganization  between the Trust, on
     behalf of the Fund,  and the  Trust,  on
     behalf of Ivy  Developing  Markets
     Fund, as set forth in the Proxy
     Statement/Prospectus.

2.   In the discretion of the proxies, on any
     other matters that may properly
     come before the meeting.


PLEASE DO NOT FORGET TO SIGN THE OTHER SIDE OF
THIS CARD.