Investable Theme: North American Shale

Ivy Energy Fund

Shale oil still offers potential opportunities in many supporting companies.

Exploration and production companies grew rapidly after the onset of the “shale revolution” that boosted U.S. oil output. High-quality independent companies now are focused on increasing efficiency and reducing costs. Select shale producers have shown that they can be competitive on price with major oil exporting countries and grow profitably at current levels. They have continued to grow because of their efficiencies, productivity gains and strong balance sheets. North American shale companies have become the global swing producer in response to changes in supply and demand.

Source: U.S. Energy Information Administration


Investable Theme in Action: Ivy Energy Fund

David Ginther, CPA, and Michael Wolverton, CFA, portfolio managers of Ivy Energy Fund, believe that companies with access to the highest-quality drilling acreage and best technology stand to benefit at current oil prices.

A closer look at the Ivy Energy Fund

Consider these examples of stocks that we believe may benefit from development of North American shale.

Parsley Energy, Inc. (PE)

EOG Resources Inc. (EOG)

Pioneer Natural Resources Co. (PXD)

Past performance is not a guarantee of future results. The opinions expressed are those of the Fund’s portfolio manager 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.

Investment return and principal value will fluctuate, and it is possible to lose money by investing.

PE: 3.12%, EOG: 4.15%, PXD: 4.10% 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. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. Investing in the energy sector can be riskier than other types of investment activities because of a range of factors, including price fluctuation caused by real and perceived inflationary trends and political developments, and the cost assumed by energy companies in complying with environmental safety regulations. 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.