Fund Detail

Ivy Energy Fund

Track Fund
$11.82 NAV as of 11/22/2017
$0.12 / 1.03% Daily NAV Change
-20.19% YTD (NAV) as of 11/22/2017 i

Morningstar Tools

Go

Fund Summary

Take a long-term, diversified approach to energy investing
Experience that counts
Portfolio Manager David Ginther, CPA, has more than two decades of industry experience and has managed the Fund since inception in 2006. He also has 10 years of international experience with a major oil company.
Focus on fundamentals
A disciplined process focuses on long-term fundamentals that drive stock performance and investment in long-term secular change.
Long-term view
The Fund’s long-term approach seeks potential opportunities around the world including demand in developing markets, such as China and India. Current themes include a focus on U.S. shale oil and supporting companies.
Morningstar Style Box
Value Blend Growth
Large
Medium
Small
Portfolio Management
  • David P. Ginther, CPA

    • — Ivy Investment Management Company
    • — 11 Years with Fund
    • — 22 Years in Industry
  • Michael T. Wolverton, CFA

    • — Ivy Investment Management Company
    • — 1 Years with Fund
    • — 13 Years in Industry
Growth of a $10,000 Investment through 10/31/2017

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
Perspectives

Manager Video

Portfolio Perspectives / 09.19.17

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.
Daily Prices as of 11/22/2017
Net Asset Value (NAV) $11.82  
Daily NAV Change $0.12 1.03%
Weekly NAV Change $0.20 1.72%
Public Offering Price (POP) $11.82
Fund Facts
Ticker Symbol IVEIX
CUSIP 466000148
Fund Code 494
Fund Type Specialty Funds
Fund Inception 4/3/2006
Class Inception 4/2/2007
Fiscal Year End March
Dividends Paid December
Fund Assets
(as of 10/31/2017)
$647.5 mil
Total Equity Holdings
(as of 10/31/2017)
42
Total Holdings
(as of 10/31/2017)
45
Portfolio Turnover Rate
(as of 3/31/2017)
39%
Lipper Category Natural Resources Funds
Morningstar Category Equity Energy
BenchmarkS&P 1500 Energy TR

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 I shares are sold without any front-end sales load or contingent deferred sales charges.

Monthly Rates of Return Average Annual Total Returns as of 10/31/2017

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV -20.93% -10.34% -10.24% -0.60% -1.83% 1.08%
S&P 1500 Energy TR -8.54% 1.61% -6.08% 0.58% 0.46% 2.74%
Lipper Natural Resources Funds -9.44% 1.26% -8.99% -1.73% -2.75% -0.33%

Quarterly Rates of Return Average Annual Total Returns as of 9/30/2017

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV -19.31% -13.22% -11.67% -0.74% -0.90% 1.28%
S&P 1500 Energy TR -7.76% -0.91% -6.84% 0.34% 0.71% 2.85%
Lipper Natural Resources Funds -9.14% -2.54% -10.62% -1.98% -2.11% -0.15%

Calendar Year Return

20122013201420152016200720082009201020112003200420052006
Class I1.30 27.57 -10.33 -22.77 34.76 - -46.40 39.87 22.81 -9.51 - - - -
S&P 1500 Energy TR4.34 25.39 -9.16 -22.07 27.31 34.56 -35.82 16.41 21.37 3.92 25.02 32.39 33.76 22.10

Morningstar Ratings as of 10/31/2017

Category: Equity Energy

Overall out of 94 ★★★
3 Year out of 94 ★★★
5 Year out of 78 ★★★
10 Year out of 64 ★★★

Ratings are based on risk-adjusted returns

Lipper Ranking through 10/31/2017

Category: Natural Resources Funds

  Rank Percentile
1 Year 75 /89 84
3 Year 45 /78 57
5 Year 23 /64 36
10 Year 21 /55 38

Rankings are based on average annual total returns, but do not consider sales charges.

Expense Ratios as of 7/5/2017

Net 1.08%
Gross 1.08%

5-Year Standard Deviation as of 10/31/2017

Fund 21.50
S&P 1500 Energy TR 17.12

5-Year MPT* Statistics as of 10/31/2017

Alpha -0.69
Beta 1.18
R-Squared 87.99
Sharpe Ratio -0.04
Capture Ratio

Upside: 113.77%

Downside: 118.44%

*Modern Portfolio Theory

Growth of a $10,000 Investment through 10/31/2017

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 4/2/2007

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Fund Documents

Top 10 Equity Holdings as a % of net assets as of 10/31/2017

EOG Resources, Inc. EOG Resources, Inc., explores, develops, produces and markets natural gas and crude oil primarily in producing basins in the United States, Canada, The Republic of Trinidad and Tobago, the United Kingdom, and The People's Republic of China. 4.79%
RPC, Inc. RPC, Inc. provides a range of oilfield services and equipment for oil and gas companies involved in the exploration, production, and development of oil and gas properties in the U.S., Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East and New Zealand. 4.77%
Continental Resources, Inc. Continental Resources, Inc. is an independent crude oil and natural gas exploration and production company with operations in the North, South and East regions of the United States. 4.71%
Halliburton Co. Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and gas properties worldwide. 4.68%
Schlumberger Ltd. Schlumberger Limited operates as an oilfield services company in the United States and internationally. 4.31%
Pioneer Natural Resources Co. Pioneer Natural Resources Company (Pioneer) is an independent oil and gas exploration and production company with operations in the United States and South Africa. 3.86%
Parsley Energy, Inc., Class A Parsley Energy is an independent oil and natural gas company with operations in the Permian Basin that develops unconventional oil and natural gas reserves.  3.83%
Cimarex Energy Co. Cimarex Energy Company operates as an independent oil and gas exploration and production company primarily in Texas, Oklahoma, and New Mexico. The company owns interests in 4,160 net productive oil and gas wells. 3.60%
Concho Resources, Inc. Concho Resources Inc., an independent oil and natural gas company, acquires, develops, and explores for oil and natural gas properties in the U.S. 3.55%
Diamondback Energy, Inc. 3.42%
Total Portfolio Holdings DOWNLOAD (as of 9/30/2017)
updated quarterly, upon availability
Market Capitalization
as a % of equity assets as of 10/31/2017
Large 52.7%
Medium 36.5%
Small 10.8%
Median Market Cap (as of 10/31/2017) $8.6 bil
Top 10 Industry Allocation (as a % of Equity Holdings as of 10/31/2017)
Oil & Gas Exploration & Production 49.4%
Oil & Gas Equipment & Services 31.7%
Oil & Gas Storage & Transportation 7.0%
Integrated Oil & Gas 4.5%
Oil & Gas Drilling 3.0%
Oil & Gas Refining & Marketing 2.2%
Data Processing & Outsourced Services 2.2%
Sector Allocation as a % of equity assets as of 10/31/2017
Energy 97.82%
Information Technology 2.18%
Portfolio Composition as a % of net assets as of 10/31/2017
Domestic Common Stock 91.26%
Foreign Common Stock 7.47%
Cash and Cash Equivalents 1.27%
Equity Country Allocation as a % of equity assets as of 10/31/2017
United States 92.4%
Netherlands 2.3%
Canada 2.2%
Switzerland 1.6%
United Kingdom 1.5%
Total Portfolio Holdings
DOWNLOAD (as of 9/30/2017)

Fund Documents

Documents

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

Additional Fund Literature

Financial Advisors may login to view fund's additional documents.


Continue

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. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. Investing in the energy sector 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 energy companies in complying with environmental safety regulations. These and other risks are more fully describe in the fund's prospectus. Not all funds or fund classes may be offered at all broker/ dealers.

Index Description: S&P 1500 Energy Sector is an unmanaged index comprised of securities that represent the energy sector of the stock market. It is not possible to invest directly in an index.

Performance results for some funds may include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

High recent returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

Fee Waiver and/or Expense Reimbursement: Through April 30, 2018, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and / or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and / or shareholder servicing fees to cap the total annual ordinary portfolio operating expenses at 1.13%. Prior to that date, the expense limitation may not be terminated by WRIMCO, Waddell & Reed, WISC or the Board of Trustees.

Waddell & Reed Advisors Energy Fund merged into Ivy Energy Fund on Oct. 16, 2017.

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.

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.

Alpha, Beta, R-Squared, Standard Deviation, Sharpe Ratio and Capture Ratio are 5 year statistics. Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of the fund's return to fluctuations in the market index. R-squared indicates how much of a fund's fluctuations were attributable to movements in the fund's benchmark. Standard deviation is a measure of how volatile a fund's returns are. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

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.

© 2017 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.

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