Oil industry faces short-term hurricane impact
While it’s too early to know the full economic and human toll of Hurricane Harvey, we expect a relatively short-term impact on the U.S. energy industry.
The opinions expressed in this commentary are those of the Fund’s managers and are current through Dec. 31, 2016. The managers' views are subject to change at any time based on market and other conditions, and no forecasts can be guaranteed. Past performance is no guarantee of future results. Past performance is not a guarantee of future results.
Michael T. Wolverton was named a portfolio manager on the Fund effective Oct. 1, 2016. He previously had been assistant portfolio manager since 2013.
Top 10 Equity Holdings as a percent of net assets as of 12/31/2016: Halliburton Co., 7.19%; Schlumberger Ltd., 6.15%; EOG Resources, Inc., 4.70%; Chevron Corp., 4.20%; BHP Billiton plc, 3.56%; Concho Resources, Inc., 3.35%; Pioneer Natural Resources Co., 3.22%; Rio Tinto plc, 3.10%; Phillips 66, 3.06%; Magellan Midstream Partners L.P., 3.05%.
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. International investing involves additional risks including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. Investing in natural resources 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 natural resource companies in complying with environmental and safety regulations. Investing in physical commodities, such as gold, exposes the Fund to other risk considerations such as potentially severe price fluctuations over short periods of time. Not all funds or fund classes may be offered at all broker/dealers. These and other risks are more fully described in the prospectus.
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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 can be obtained from a financial advisor or at www.ivyinvestments.com. Read it carefully before investing.