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1.22.21
2021 Global Outlook
Ivy Investments believes the path forward requires a disciplined approach that combines resilience and a reliance on the fundamentals of active investing.
CIO Insights / 2.05.20
The beginning of a new cycle
We assess the current environment and offer 2021 market observations and the possible implications for investors.
11.18.20
Ivy Investments Forum
We recently gathered a number of thought-provoking experts who shared their latest views on an array of critical issues impacting today’s investing landscape. Watch the session replays to get our panelists’ insights.
Webcasts / 02.05.21
The Pandemic Time Capsule
How Covid-19 Impacts Every Generation and What This Means for a Plan Forward
Genlink
Raising financially smart kids
Passing on life lessons from generation to generation is important, especially when it comes to topics like money. Discover strategies to raising financially smart kids.
Genlink
Three plans every Gen Xer needs to consider before they turn 50
Xers - hitting the big 5-0 is a big milestone. Uncover the three essential plans you may want to consider to protect your family and yourself.
Our Company
Ivy Investments
We stand for a legacy of expertise, focused on delivering strong, long-term results. Our name reflects our progressive product offerings and growing global presence as we continue to adapt to the needs of investors.
Quarterly Commentary
Ivy Government Securities Fund
12.31.20
Market Sector Update
The Federal Reserve (Fed) remained a dominant buyer in the U.S. Treasury, U.S. agency mortgage securities and
U.S. corporate bond markets in the quarter. This was a continuation of the extreme market support it began in the
second quarter. The Fed decided at its December Federal Open Market Committee meeting to continue its purchases
of U.S. Treasuries at a pace of $80 billion per month and U.S. agency mortgage securities at $40 billion per month in
order to maintain its accommodative monetary policy.
The Fed’s commitment to keeping rates low has anchored the front end of the yield curve to extremely low levels.
Yields on the 2- and 3-year U.S. Treasury notes barely budged in the quarter while the 10-year U.S. Treasury note rose
over 20 basis points (bps) in the same period. The U.S. election, stimulus debates and effectiveness and rollout of the
vaccines to fight the pandemic all contributed to the move higher in longer rates. It is interesting to note that while the
yield on the 10-year U.S. Treasury moved significantly higher in the quarter, it ended the year at 92 bps, about 100 bps
lower than a year ago.
Spreads on U.S. agency mortgage securities continued to tighten in residential mortgage-backed securities (RMBS)
and commercial mortgage-backed securities (CMBS), as well as U.S. agency collateral mortgage obligations (CMO)
asset classes. Despite the noticeable backup in longer U.S. Treasury rates, mortgage rates available to consumers
remain near all-time lows. This keeps the prepayment risk high for both RMBS and for CMOs.
Portfolio Strategy
The Fund outperformed its benchmark for the quarter. The significant move higher in rates, however, caused a
negative quarterly return for both the Fund and the benchmark.
The Fund is slightly overweight mortgage-backed securities relative to the benchmark and those generated a
positive return in the quarter. We have been adding agency CMBS with good current yields and certain prepayment
protection.
The Fund’s duration decreased during the quarter to 93% of the benchmark’s duration, from 98% at the end of the
third quarter, contributing to the Fund’s outperformance relative to the benchmark.
Outlook
The COVID-19 virus is out of control in much of the U.S. at the end of the year, overwhelming the health care systems
in several regions. Uncertainty is significant and will likely remain through much of the year until the virus is contained.
President-elect Joe Biden will be sworn in as the 46th president of the United States on January 20. A high priority
will be on the delivery of vaccines across the nation, as well as assisting states in the vaccination process. It is
expected that the new administration will encourage more fiscal stimulus in the form of direct checks, extended
unemployment insurance, rent and mortgage forbearance, help to impacted businesses, help to state and local
governments and an infrastructure program.
We will continue to look for opportunities to enhance returns in the Fund as we maneuver through the uncertainty
ahead.
We will continue to look for opportunities to enhance returns in the Fund as we maneuver through the uncertainty
ahead.
The opinions expressed are those of the Fund’s 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, 2020, are subject to change at any time based on market and other current conditions, and no forecasts can be guaranteed. This commentary is being provided as a general source of information and is not
intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy. Investment decisions should always be made based on an investor’s specific objectives, financial
needs, risk tolerance and time horizon. Past performance is not a guarantee of future results.
The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets
in ways that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises
caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined
with certainty.
All information is based on Class I shares.
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. Fixed income securities are subject to interest rate risk and, as such, the net asset value of the fund may fall as interest rates rise. Investing in below investment
grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. 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.
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Ivy offers model delivery for nine equity strategies
Nine strategies are available in a model-delivery format, to be available in SMA and UMA accounts, providing advisors and investors a new way to access Ivy’s strategies.
Ivy InvestEdSM 529 Plan
A flexible, tax-advantaged 529 plan that allows you to invest for future education goals.
2021 Global Outlook
Ivy Investments believes the path forward requires a disciplined approach that combines resilience and a reliance on the fundamentals of active investing.
The beginning of a new cycle
We assess the current environment and offer 2021 market observations and the possible implications for investors.
Ivy Investments Forum
We recently gathered a number of thought-provoking experts who shared their latest views on an array of critical issues impacting today’s investing landscape. Watch the session replays to get our panelists’ insights.
The Pandemic Time Capsule
How Covid-19 Impacts Every Generation and What This Means for a Plan Forward
Raising financially smart kids
Passing on life lessons from generation to generation is important, especially when it comes to topics like money. Discover strategies to raising financially smart kids.
Three plans every Gen Xer needs to consider before they turn 50
Xers - hitting the big 5-0 is a big milestone. Uncover the three essential plans you may want to consider to protect your family and yourself.
Ivy Investments
We stand for a legacy of expertise, focused on delivering strong, long-term results. Our name reflects our progressive product offerings and growing global presence as we continue to adapt to the needs of investors.
Quarterly Commentary
Ivy Government Securities Fund
Market Sector Update
Portfolio Strategy
Outlook
The opinions expressed are those of the Fund’s 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, 2020, are subject to change at any time based on market and other current conditions, and no forecasts can be guaranteed. This commentary is being provided as a general source of information and is not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy. Investment decisions should always be made based on an investor’s specific objectives, financial needs, risk tolerance and time horizon. Past performance is not a guarantee of future results.
The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.
All information is based on Class I shares.
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. Fixed income securities are subject to interest rate risk and, as such, the net asset value of the fund may fall as interest rates rise. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. 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.