Contact our technical support help desk at
1.800.532.2751. Representatives are available between
7:00 a.m. to 5:30 p.m. CDT, Monday through Friday.
This website is designed to facilitate the transmission
of mutual fund data, account information and sales
and educational materials to investment professionals.
By accessing this site you are verifying that you are an
investment professional.
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.
A flexible, tax-advantaged 529 plan that allows you to invest for future education goals.
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.
CIO Insights / 1.08.20
Turning the page on 2020
As we move past the challenges of 2020, we are optimistic about the global economy and markets for 2021.
Chart of the week / 1.08.20
This Trend is Your Friend
We believe pressure on the U.S. dollar may provide a boost for investors in foreign assets.
Webcasts / 01.08.21
Not your Grandma’s Nutrition Lesson
Learn how to read the new USDA nutrition label, why sugar is detrimental to your health and to get some healthy breakfast, lunch, dinner and snack ideas.
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 Pinebridge High Yield Fund
12.31.20
Market Sector Update
High yield spreads traded tighter through the first three weeks of October and then wider during the last week of
the month, trading roughly flat overall. Capital market activity slowed somewhat following back-to-back $50-billionplus
volumes in August and September. Reduced new-issue activity, coupled with inflows into retail mutual funds and
exchange traded funds (ETFs), created a strong technical backdrop for the high yield market.
Investors had to contend with uncertainty related to the U.S. election, additional fiscal stimulus in the U.S., the rapid
rise in COVID-19 cases in the U.S. and Europe, and the increasing the risk of governments reinstituting varying degrees
of shutdown measures and pushing economies around the globe back into recession. High yield spreads then traded
tighter in November and December as clarity around the results of the U.S. presidential election, positive news flow on
vaccine development and distribution, and ongoing optimism and passing of additional fiscal stimulus provided
confidence of a stronger recovery in 2021. The boost in investor optimism came despite the continued surge in COVID-
19 infections in the U.S. and Europe. In the meantime, central banks continue to provide support and have indicated
that their accommodative measures will remain in place for the foreseeable future, keeping rates lower for longer.
Gross new issue activity totaled $99.6 billion during the quarter, down from second and third quarter levels, but still
the ninth highest total quarterly issuance on record. Full-year issuance totaled $449.9 billion, up 57% from 2019 levels
and surpassing the prior record issuance of $398.5 billion in 2013. High yield mutual funds and ETFs reported inflows
of $8.3 billion in the fourth quarter. For 2020, high yield funds reported inflows of $44.3 billion, up from 2019 inflows
of $18.8 billion. The par-weighted U.S. high yield default rate ended December at 6.17%, which is 353 basis points (bps)
higher than the start of the year and significantly higher than the long-term average of approximately 3.5%.
The 5- and 10-year U.S. Treasury rates traded 8 bps and 23 bps higher, respectively. The option-adjusted spread
(OAS) on the Bloomberg Barclays U.S. Corporate High-Yield Bond traded 157 bps tighter during the quarter to end at
360 bps. The U.S. dollar weakened during the quarter, decreasing 4.21%.
Portfolio Strategy
The Fund had a positive mid-single digit return, but underperformed its benchmark.
From a sector selection standpoint, the cash position and an overweight allocation to the electric sector were the
largest detractors, while overweight allocations to the finance companies, transportation and energy sectors
contributed to performance.
From a security selection standpoint, holdings in the energy and real estate investments trusts (REIT) sectors were
the most notable detractors, while holdings among consumer cyclical and communications names contributed.
According to Barclay’s data, Ba-rated bonds returned 5.69%, while single-B rated bonds returned 5.83% and Caarated
bonds returned 9.91%.
Outlook
High yield bonds rallied further in December with spreads approaching levels not seen since the beginning of the
year. Overall index spread levels have now largely closed the gap with what would normally be considered fair
valuations against the current default backdrop. However, we see the potential for credit markets to tighten further.
The results of the Georgia Senate runoff election are now known, with the Democrats winning both seats, resulting
in unified control of the U.S. Presidency and both chambers of Congress, albeit with slim majorities. As a result, we now expect to see a more robust fiscal package than we anticipated in previous months when a divided government
appeared to be the most likely outcome, which should further boost market sentiment.
Technical conditions remain supportive, with robust institutional and retail demand for high yield bonds as investors
search for yield. Moreover, we expect the lowering of risk premia to continue into 2021 and beyond, as Federal Reserve
policy remains accommodative and has diminished tail risks for investors.
While we remain cognizant of the risks still present in the market, such as high rates of COVID-19 infections and the
emergence of virus mutations threatening new shutdown measures, we believe these issues will ultimately be
outweighed by the various tailwinds supporting financial markets. Against this backdrop, we remain constructive on
the high yield bond market and continue to seek to add incremental returns at the issuer and security selection level.
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 Bloomberg Barclays U.S. Corporate High-Yield Index measures the U.S. dollar-denominated, high-yield, fixed-rate corporate bond market. It is not possible to invest directly in an index.
All information is based on Class I shares.
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.
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. 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. 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.
Featured Products
Funds you track
Register or sign in to your account to view and start tracking funds.
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.
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.
Turning the page on 2020
As we move past the challenges of 2020, we are optimistic about the global economy and markets for 2021.
This Trend is Your Friend
We believe pressure on the U.S. dollar may provide a boost for investors in foreign assets.
Not your Grandma’s Nutrition Lesson
Learn how to read the new USDA nutrition label, why sugar is detrimental to your health and to get some healthy breakfast, lunch, dinner and snack ideas.
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 Pinebridge High Yield 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 Bloomberg Barclays U.S. Corporate High-Yield Index measures the U.S. dollar-denominated, high-yield, fixed-rate corporate bond market. It is not possible to invest directly in an index.
All information is based on Class I shares.
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.
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. 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. 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.