Investable Theme: Innovation driving advancement in health care

Ivy Science and Technology Fund

The impact of technological advancement and innovation is creating investable opportunities across the health care system.

While technological advancement within health care may seem innocuous at first, it can have life changing applications. Companies able to capitalize on the growing need for quality and innovative treatments stand to benefit. And the demand for such therapies is increasing as the population base ages. For example, the aging population (60+) is expected to more than double by 2050.1 These trends bode well for companies able to capitalize on the growing demand.

Investable Theme in Action: Ivy Science and Technology Fund

Zachary Shafran and Bradley Warden, portfolio managers of Ivy Science and Technology Fund, believe technological advancements in health care are creating investment opportunities.

A closer look at the Ivy Science and Technology Fund

Below are three examples of stocks we believe may benefit from rapid evolution of innovation and technology within the health care sector.

Gilead Sciences, Inc. (GILD)

Vertex Pharmaceuticals, Inc. (VRTX)

IONIS Pharmaceuticals, Inc. (IONS)

1Source: United Nations.

Past performance is not a guarantee of future results. The opinions expressed are those of the Fund’s portfolio managers and are not meant as investment advice or to predict or project the future performance of any investment product. The opinions are current through Dec. 31, 2018, are subject to change based on market conditions or other factors, and no forecasts can be guaranteed. The holdings discussed are for illustrative purposes only and are not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy.

GILD: 0.7%, VRTX: 5.2%, IONS 2.7% of net assets as of 12/31/2018.

Risk factors: The value of the Fund’s shares will change, and you could lose money on your investment. Because the Fund invests more than 25% of its total assets in the science and technology industry, the Fund’s performance may be more susceptible to a single economic, regulatory or technological occurrence than a fund that does not concentrate its investments in this industry. Securities of companies within specific industries or sectors of the economy may periodically perform differently than the overall market. In addition, the Fund’s performance may be more volatile than an investment in a portfolio of broad market securities and may underperform the market as a whole, due to the relatively limited number of issuers of science and technology related securities. Investment risks associated with investing in science and technology securities, in addition to other risks, include: operating in rapidly changing fields, abrupt or erratic market movements, limited product lines, markets or financial resources, management that is dependent on a limited number of people, short product cycles, aggressive pricing of products and services, new market entrants and obsolescence of existing technology. These and other risks are more fully described in the Fund’s prospectus. Not all funds or fund classes may be offered at all broker/dealers.