Fund Detail

Ivy Corporate Bond Fund

Track Fund
$5.92 NAV as of 11/15/2018
($0.02) / -0.34% Daily NAV Change
-3.24% YTD (NAV) as of 11/15/2018 i

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Fund Summary

The Ivy Corporate Bond Fund seeks to provide current income consistent with preservation of capital.
Credit Quality
Holds primarily investment-grade debt securities.
Diversification
A portfolio consisting primarily in corporate bonds, but does include a blend of issuers.
Experienced Management
The team has more than 50 years of experience in managing various types of credit portfolios.
Morningstar Style Box
LTD MOD EXT
High
Medium
Low
Portfolio Management
  • Mark G. Beischel, CFA

    • — Ivy Investment Management Company
    • — <1 Years with Fund
    • — 25 Years in Industry
  • Susan K. Regan

    • — Ivy Investment Management Company
    • — <1 Years with Fund
    • — 31 Years in Industry
Growth of a $10,000 Investment through 10/31/2018

Assumes an investment over 10 years or life of the share class, reinvestment of dividends and capital gains, and does not include the effect of sales charges or taxes.

Documents
Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
Quarterly Commentary
XBRL
Daily Prices as of 11/15/2018
Net Asset Value (NAV) $5.92  
Daily NAV Change ($0.02) -0.34%
Weekly NAV Change $0.00 0.00%
Public Offering Price (POP) $5.92
Fund Facts
Ticker Symbol IBJYX
CUSIP 46600G804
Fund Code 701
Fund Type Fixed Income Funds
Fund Inception 3/30/1964
Class Inception 10/16/2017
Fiscal Year End September
Dividends Paid Monthly
Fund Assets
(as of 10/31/2018)
$932.0 mil
Total Holdings
(as of 10/31/2018)
299
Portfolio Turnover Rate
(as of 3/31/2018)
12%
Morningstar Category Corporate Bond
Lipper Category Corporate Debt Funds A Rated
BenchmarkBloomberg Barclays U.S. Credit Index
BenchmarkBloomberg Barclays US Agg Bond TR USD

Fund Performance

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Class Y shares are not subject to sales charges.

Monthly Rates of Return Average Annual Total Returns as of 10/31/2018

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV -3.25% -3.12% N/A N/A N/A -3.14%
Bloomberg Barclays U.S. Credit Index -3.49% -2.81% 2.34% 2.81% 6.43% -
Bloomberg Barclays US Agg Bond TR USD -2.38% -2.05% 1.04% 1.83% 3.94% -
Morningstar Corporate Bond -3.20% -2.67% 2.55% 2.90% 6.37% -

Quarterly Rates of Return Average Annual Total Returns as of 9/30/2018

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV -2.15% N/A N/A N/A N/A -2.16%
Bloomberg Barclays U.S. Credit Index -2.12% -1.10% 2.98% 3.40% 5.94% -
Bloomberg Barclays US Agg Bond TR USD -1.60% -1.22% 1.31% 2.16% 3.77% -
Morningstar Corporate Bond -1.95% -1.04% 3.23% 3.51% 5.81% -

Calendar Year Return

201320142015201620172008200920102011201220032004200520062007
Bloomberg Barclays US Agg Bond TR USD-2.02 5.97 0.55 2.65 3.54 5.24 5.93 6.54 7.84 4.21 4.10 4.34 2.43 4.33 6.97

Morningstar Ratings as of 10/31/2018

Category: Corporate Bond

Overall out of 182
3 Year out of 182
5 Year out of 152
10 Year out of 82

Ratings are based on risk-adjusted returns.

Morningstar Ranking through 10/31/2018

Category: Corporate Bond

  Rank Percentile
1 Year 140 /252 63

Morningstar Ranking / # of Funds in Category displays the fund's actual rank within its Morningstar Category based on average annual total return and number of Funds in that Category. The Morningstar Percentile Ranking compares a Fund's Morningstar risk and return scores with all the Funds in the same Category, where 1% = Best and 100% = Worst.

Expense Ratios as of 1/31/2018

Net 0.93%
Gross 0.93%

Growth of a $10,000 Investment through 10/31/2018

Assumes an investment over 10 years or life of the share class, reinvestment of dividends and capital gains, and does not include the effect of sales charges or taxes.

Fund Distributions

Historical Prices Inception 10/16/2017

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 10/16/2017

Ex-date Income Capital Gains Reinvest Gains Payment Date

*Special Dividend
The table includes the daily prices at NAV (net asset value) for the history of this fund's selected share class. NAV is the amount per share you would receive if you sold shares that day.

12-Month Trailing Dist. Yield as of 10/31/2018

NAV 2.48%
With Sales Charge 2.48%

Annualized 30-Day SEC Yield as of 10/31/2018

Subsidized 3.19%
Unsubsidized 3.19%

Fund Documents

Top 10 Holdings as a % of net assets as of 10/31/2018

Province de Quebec, 7.1%, 2/27/2026 1.20%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO, 4.3%, 12/25/2044 1.18%
Berkshire Hathaway Finance Corp. (GTD by Berkshire Hathaw, 4.2%, 8/15/2048 1.08%
USAA Capital Corp., 2.5%, 8/1/2020 1.06%
Medtronic, Inc., 4.4%, 3/15/2035 0.88%
Duke Energy Carolinas LLC, 3.8%, 6/1/2045 0.86%
General Electric Capital Corp., 2.3%, 11/15/2020 0.81%
NIKE, Inc., 3.9%, 11/1/2045 0.79%
BMW U.S. Capital LLC, 2.8%, 4/11/2026 0.79%
Progressive Corp. (The), 4.0%, 3/1/2029 0.75%
Total Portfolio Holdings DOWNLOAD (as of 9/30/2018)
updated quarterly, upon availability
Maturity as a % of fixed income assets as of 10/31/2018
<1 Year 2.20%
1-5 Years 35.10%
5-10 Years 38.50%
10-20 Years 7.50%
>20 Years 16.70%
Average Maturity 9.87 years
Effective Duration 6.91 years
Fixed Income Country Allocation (as a % of bond holdings as of 10/31/2018)
United States 85.6%
Canada 4.3%
Australia 2.4%
United Kingdom 1.9%
Japan 1.8%
Ireland 1.0%
Sweden 0.7%
Spain 0.6%
Bermuda 0.5%
Netherlands 0.3%
Denmark 0.2%
Luxembourg 0.2%
Guernsey 0.2%
China 0.1%
Mexico 0.1%
Quality as a % of fixed income assets as of 10/31/2018
Government Bonds 1.40%
NonRated 0.20%
AAA 2.90%
AA 12.80%
A 38.00%
BBB 43.80%
BB 0.90%

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Portfolio Composition as a % of net assets as of 10/31/2018
Corporate Bonds 90.89%
Asset-Backed Securities 2.41%
Cash and Cash Equivalents 1.71%
Other Government Securities 1.62%
Government Bonds 1.41%
Revenue Bonds 1.07%
General Obligation Bonds 0.63%
Mortgage-Backed Securities 0.21%
Preferred Stock 0.05%
Total Portfolio Holdings
DOWNLOAD (as of 9/30/2018)

Fund Documents

Documents

Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
Quarterly Commentary
XBRL

Additional Fund Literature

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Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

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.

Effective, April 30, 2018, the Portfolio's benchmark changed from the Bloomberg Barclays U.S. Aggregate Bond Index to the Bloomberg Barclays U.S. Credit Index. Both the prior and current benchmark indexes will be shown for a period of one year for comparison purposes.

Index Description: The Bloomberg Barclays U.S. Aggregate Bond TR USD Index - A market capitalization-weighted index, representing most U.S. traded investment grade bonds. It is not possible to invest directly in an index.

Index Description: Bloomberg Barclays U.S. Credit Index Is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. Issues are rated at least Baa by Moody's Investors Service or BBB by Standard & Poor's, if unrated by Moody's. Collateralized Mortgage Obligations (CMOs) are not included. It is not possible to invest directly in an index.

Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. WRA Bond Fund did not have Class E, Class N or Class R shares, or their equivalents. Accordingly, there is limited history for any of these share classes. In addition, as part of the reorganization, Class Y shares of WRA Bond Fund were reorganized into Class I shares of Ivy Bond Fund; therefore, Ivy Bond Fund's Class Y shares also will have limited performance history.

Rick Perry served as a portfolio manager on the Fund until April 12, 2018.

Waddell & Reed Advisors (WRA) Bond Fund merged into Ivy Bond Fund on Oct. 16, 2017, since renamed the Ivy Corporate Bond Fund on April 30, 2018.. The returns shown prior to this date reflect the performance of WRA Bond Fund, which was incepted on March 30, 1964. Ivy Corporate Bond Fund adopted that performance as the result of a reorganization in which it acquired all assets and liabilities of WRA Bond Fund. Prior to the reorganization, the Ivy Corporate Bond Fund had no assets and had not commenced operations. Performance shown after Jan. 31, 2012, may significantly differ from prior performance due to changes made on that date to WRA Bond Fund's investment strategies. WRA Bond Fund's past performance does not necessarily indicate how Ivy Corporate Bond Fund will perform in the future.

Effective Apr. 30, 2018, Ivy Bond was renamed Ivy Corporate Bond.

Pricing: All prices and year-to-date returns are based on closing quotes unless noted, as supplied to the NASDAQ by 6:00 p.m. Eastern time. YTD Prices can be updated 3 to 4 hours after the Daily Pricing information which can result in mismatching data.

Style Analysis: The Morningstar Style Box reveals a fund's investment style. For equity funds the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend, or growth). For fixed-income funds, the vertical axis shows the credit quality of the bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by the following Nationally Recognized Statistical Rating Organizations (NRSROs): Moody's, Standard & Poor's, Fitch, and Egan-Jones. If two NRSROs have rated a security, fund companies are to report the lowest rating; if three or more NRSROs have rated the same security differently, fund companies are to report the rating that is in the middle. For example, if NRSRO X rates a security AA-, NRSRO Y rates the same security an A and NRSRO Z rates it a BBB+, the fund company should use the credit rating of 'A' in its reporting to Morningstar. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of "low", "medium", or "high" based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-"; medium are those less than "AA-", but greater or equal to "BBB-"; and high are those with a weighted-average credit quality of "AA-" or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar's analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years.

Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. The adviser and its affiliates have or may voluntarily waive a portion of their fees (including, but not limited to, distribution and service (12b-1) fees) and reimburse certain expenses. There is no guarantee that the fund will avoid a negative yield. Such undertaking may be amended or withdrawn at any time.

30-Day SEC Yield: is calculated based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.

12-Month Trailing Distribution Yield: at NAV refers to the 12-month historical cash flow paid over the past 12 months in dividends, divided by the past months ending NAV.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance, and does not include the effects of sales charges. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Information is subject to change and is not intended to represent any past or future investment recommendations.