Contact our technical support help desk at
1.800.366.4673. 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.
A flexible, tax-advantaged 529 plan that allows you to invest for future education goals.
Portfolio Perspective / 2.11.19
Emerging markets have potential for brighter 2019
The Ivy Emerging Markets Equity Fund managers say the main headwinds for emerging markets in 2019 are idiosyncratic risks that affect relatively few countries. They think several key factors create a brighter outlook in 2019.
Portfolio Perspective / 2.11.19
Five reasons for high yield in 2019
As proven investors in the high yield space, we understand recent concerns about a slowing global economy. Chad Gunther, portfolio manager of Ivy High Income Fund, believes there are five reasons high yield offers potential opportunities for investors in 2019.
Market Perspective / 1.31.19
China still seeks growth while navigating new challenges
Technology and health care companies are changing the world through innovation. Our Ivy Live panel shared trends and ideas that caught their attention after attending CES and the J.P. Morgan Healthcare Conference, and what it all could mean for investors in 2019.
Webcasts / 02.01.19
Shrinking the Retirement Income Gap with HSAs
Discover what Health Saving Accounts are, the benefits they offer and how they can be utilized to pay for eligible health care expenses on a tax-free basis – both today and in retirement.
Genlink
Attracting assets in motion
Over the next few decades, client assets currently held by Traditionalists and Baby Boomers will be controlled by Generation Xers and Millennials, reshaping the traditional financial advisor model. Discover how you can plan for each generation.
Genlink
Why advisors need to understand each generation
Navigating generational differences can be tricky, whether you’re speaking to a younger client or chatting with a long-time client that might be your parents’ age. Knowing each generation can lead to a growing and stable practice.
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 Fund Commentary
Ivy VIP Micro Cap Growth
06.30.18
Market Sector Update
Smaller companies added to first quarter gains over the past three months, and also outperformed their large-cap
peers, based on broad market indices.
Small-cap company outperformance has now occurred in each of the past four months, which in and of itself is not
that significant; however, the magnitude is. Over this four-month period small caps, based on the Russell 2000 Growth
Index are outperforming large caps, based on the S&P 500 Index, by the largest margin since 2010. This performance
differential is almost certainly a result of increasing rhetoric about tariffs and fears of a global trade war erupting. On
the surface, it would appear a trade war would be less of an impact for smaller companies as they commonly generate
a lower percentage of revenue and earnings from overseas compared to large caps.
Portfolio Strategy
In the quarter ended June 30, 2018, the Portfolio outperformed its benchmarks, the Russell Microcap Growth Index
and Russell 2000 Growth Index.
In the second quarter, every sector but one posted positive returns in the Russell Microcap Growth Index, which is
indicative of the broad-based strength. In what has been a reoccurring theme in the recent past, the index continued
to be fueled by its two largest sectors – healthcare and technology. Broadly speaking, these sectors benefited from a
powerful combination of strong financial results, innovative new products, as well as multiple expansion.
The industrials and consumer discretionary sectors also produced solid gains for the index in the quarter. In the past,
companies in these two sectors commonly paid some of the highest tax rates; thus, the passage of tax reform has
enabled them to generate significant year-over-year growth in after tax cash flow and earnings. Lastly, as previously
mentioned, there was no real drag on the index’s performance. Materials was the worst performing sector and it was
down only slightly during the period.
Performance attribution analysis for the quarter reveals that the Portfolio benefited from both allocation effect and
stock selection. From an allocation standpoint, performance was aided by the technology sector since the Portfolio
carries an overweight position, and it was one of the strongest performing areas in the index. Additionally,
the Portfolio’s underweight position in financials also helped given this area of the market underperformed during the
period.
Stock selection provided an outsized benefit during the second quarter due primarily to the Portfolio’s health care
holdings. Despite being underweight the sector, the Portfolio’s holdings appreciated meaningfully more than the
index’s, which resulted in significant outperformance in the second quarter. Technology holdings also added to the
selection benefit. On the negative side, stock selection in the energy sector created a modest headwind.
Companies that had the biggest positive impact on performance in the quarter included Tabula Rasa Healthcare,
Tactile Systems Technology and Axogen. Each of these companies have unique, innovative products that provide them
with strong competitive positions in very large, underpenetrated end markets. In terms of performance detractors,
the Portfolio benefited from having very few holdings that performed poorly. GTT Communications and Mercury
Computer Systems were the only two laggards in the quarter. In both instances this weakness came after posting
sizable gains over the past 18-24 months.
Outlook
Looking forward, as we enter the second half of the year, it appears that business fundamentals remain favorable
and the prospect for robust earnings growth is still intact. However, as valuation multiples continue to march higher,
especially for smaller healthcare and technology companies, it would increasingly appear that the marketplace
recognizes this forecasted growth. After posting strong absolute and relative returns in the quarter, we have trimmed
some of our stronger performers, which is providing us fresh capital to seek out new investments. While it is anyone’s
guess which direction the market is headed in the short term, we remain ready to capitalize on any pullback that could
occur due to something such as the escalating global trade conflict.
The opinions expressed are those of the Portfolio’s 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 June
30, 2018, 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.
Top 10 holdings (%) as of 06/30/2018: 8x8, Inc. 5.3, Aerie Pharmaceuticals 5.2, Tabula Rosa HealthCare, Inc. 4.9, Mimecast Ltd. 4.9, Tactile Systems Technology, Inc. 4.7, AxoGen, Inc. 4.0, MYR Group, Inc. 3.2, Kornit
Digital Ltd. 3.1, EVO Payments, Inc. 3.1 and Cornerstone OnDemand, Inc. 2.8.
The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. The Russell Microcap Growth Index measures the performance of the micro-cap growth
segment of the U.S. equity market. The S&P 500 Index is an unmanaged index of common stocks. It is not possible to invest directly in an index.
Risk factors: The value of the Portfolio’s shares will change, and you could lose money on your investment. Market risk for small-sized companies may be greater than that for medium or large companies. Smaller
companies are more likely to have limited financial resources and inexperienced management. Stocks of smaller companies, as well as stocks of companies with high-growth expectations reflected in their stock
price, may experience volatile trading and price fluctuations. Furthermore, when the economy enters a recession, there tends to be a “flight to quality,” which may exacerbate the increased risk and greater price
volatility normally associated with smaller companies. The Portfolio’s performance may be more susceptible to a single economic, regulatory, or technological occurrence than if it had a more diversified investment
portfolio. The Portfolio may invest in Initial Public Offerings (IPOs), which can have a significant positive impact on the Portfolio’s performance that may not be sustainable. An investment in the Portfolio is not a bank
deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. These and other risks are more fully described in the Portfolio’s prospectus. Not all funds or
fund classes may be offered at all broker/dealers.
Annuities are long-term financial products designed for retirement purposes. Annuity and life insurance guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The
guarantees have no bearing on the performance of a variable investment option. Variable investment options are subject to market risk, including loss of principal. There are charges and expenses associated with
annuities and variable life insurance products, including mortality and expense risk charges, management fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals.
Withdrawals before age 59 1/2 may be subject to a 10% IRS tax penalty and surrender charges may apply.
Featured Products
Funds you track
Register or sign in to your account to view and start tracking funds.
News Release: Ivy reduces expenses on 10 key funds
Firm announces latest step in evolution of fund product line
Ivy InvestEdSM 529 Plan
A flexible, tax-advantaged 529 plan that allows you to invest for future education goals.
Emerging markets have potential for brighter 2019
The Ivy Emerging Markets Equity Fund managers say the main headwinds for emerging markets in 2019 are idiosyncratic risks that affect relatively few countries. They think several key factors create a brighter outlook in 2019.
Five reasons for high yield in 2019
As proven investors in the high yield space, we understand recent concerns about a slowing global economy. Chad Gunther, portfolio manager of Ivy High Income Fund, believes there are five reasons high yield offers potential opportunities for investors in 2019.
China still seeks growth while navigating new challenges
Technology and health care companies are changing the world through innovation. Our Ivy Live panel shared trends and ideas that caught their attention after attending CES and the J.P. Morgan Healthcare Conference, and what it all could mean for investors in 2019.
Shrinking the Retirement Income Gap with HSAs
Discover what Health Saving Accounts are, the benefits they offer and how they can be utilized to pay for eligible health care expenses on a tax-free basis – both today and in retirement.
Attracting assets in motion
Over the next few decades, client assets currently held by Traditionalists and Baby Boomers will be controlled by Generation Xers and Millennials, reshaping the traditional financial advisor model. Discover how you can plan for each generation.
Why advisors need to understand each generation
Navigating generational differences can be tricky, whether you’re speaking to a younger client or chatting with a long-time client that might be your parents’ age. Knowing each generation can lead to a growing and stable practice.
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 Fund Commentary
Ivy VIP Micro Cap Growth
Market Sector Update
Portfolio Strategy
Outlook
The opinions expressed are those of the Portfolio’s 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 June 30, 2018, 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.
Top 10 holdings (%) as of 06/30/2018: 8x8, Inc. 5.3, Aerie Pharmaceuticals 5.2, Tabula Rosa HealthCare, Inc. 4.9, Mimecast Ltd. 4.9, Tactile Systems Technology, Inc. 4.7, AxoGen, Inc. 4.0, MYR Group, Inc. 3.2, Kornit Digital Ltd. 3.1, EVO Payments, Inc. 3.1 and Cornerstone OnDemand, Inc. 2.8.
The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. The Russell Microcap Growth Index measures the performance of the micro-cap growth segment of the U.S. equity market. The S&P 500 Index is an unmanaged index of common stocks. It is not possible to invest directly in an index.
Risk factors: The value of the Portfolio’s shares will change, and you could lose money on your investment. Market risk for small-sized companies may be greater than that for medium or large companies. Smaller companies are more likely to have limited financial resources and inexperienced management. Stocks of smaller companies, as well as stocks of companies with high-growth expectations reflected in their stock price, may experience volatile trading and price fluctuations. Furthermore, when the economy enters a recession, there tends to be a “flight to quality,” which may exacerbate the increased risk and greater price volatility normally associated with smaller companies. The Portfolio’s performance may be more susceptible to a single economic, regulatory, or technological occurrence than if it had a more diversified investment portfolio. The Portfolio may invest in Initial Public Offerings (IPOs), which can have a significant positive impact on the Portfolio’s performance that may not be sustainable. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. These and other risks are more fully described in the Portfolio’s prospectus. Not all funds or fund classes may be offered at all broker/dealers.
Annuities are long-term financial products designed for retirement purposes. Annuity and life insurance guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. Variable investment options are subject to market risk, including loss of principal. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, management fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 59 1/2 may be subject to a 10% IRS tax penalty and surrender charges may apply.