Fund Detail

Ivy Funds VIP Science and Technology

Class A Shares
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Fund Summary

Focused on growth. Rooted in innovation
Excellent track record
Strong historical results, managed by Zachary Shafran, with more than 20 years of experience.
Multiple, non-correlated sources of growth
Seeks opportunities within technology, health care, and applied science and technology.
Proven investment process
Built on a six-decade firm legacy of technology investing expertise
Morningstar Style Box
Value Blend Growth
Large
Medium
Small
Portfolio Management
  • Zachary H. Shafran

      +
    • — Waddell & Reed Investment Management Company
    • — 15 Years with Fund
    • — 28 Years in Industry
Growth of a $10,000 Investment through 8/31/2016

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. Performance data quoted does not reflect any expenses or charges associated with owning a variable life insurance policy or variable annuity contract that invests in the Fund's shares. When such charges are deducted, actual investment performance in a variable annuity will be lower.

Documents
Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
Quarterly Commentary
XBRL
Daily Prices as of 9/26/2016
Net Asset Value (NAV) $21.81  
Daily NAV Change ($0.28) -1.26%
Weekly NAV Change $0.06 0.27%
Public Offering Price (POP) $21.81
Fund Facts
Ticker Symbol -
CUSIP 46600H794
Fund Code 851
Fund Type Specialty Funds
Fund Inception 4/4/1997
Class Inception 4/4/1997
Fiscal Year End December
Dividends Paid May
Fund Assets
(as of 8/31/2016)
$524.7 mil
Total Equity Holdings
(as of 8/31/2016)
54
Total Holdings
(as of 8/31/2016)
64
Portfolio Turnover Rate
(as of 6/30/2016)
4%
Lipper Category Science & Technology Funds
Morningstar Category Technology
BenchmarkS&P North American Technology 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.

Performance at NAV does not include the effect of sales charges. Class A shares, including sales charges, reflects the maximum applicable front-end sales load.

Monthly Rates of Return Average Annual Total Returns as of 8/31/2016

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV -1.55% -0.72% 6.59% 13.36% 10.06% 13.50%
S&P North American Technology TR 10.01% 20.17% 17.87% 17.31% 11.26% 8.62%
Lipper Science & Technology Funds 8.40% 15.25% 14.11% 14.23% 9.39% N/A

Quarterly Rates of Return Average Annual Total Returns as of 6/30/2016

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV -9.09% -15.65% 5.34% 9.94% 9.38% 13.15%
S&P North American Technology TR 0.23% 7.69% 15.61% 13.64% 10.58% 8.18%
Lipper Science & Technology Funds 0.23% 1.21% 12.87% 10.35% 8.63% N/A

Calendar Year Return

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Class A 7.87 24.37 -33.89 43.84 12.75 -5.77 27.83 56.38 2.91 -2.88
S&P North American Technology TR 8.98 16.94 -43.33 63.19 12.65 -0.88 15.23 34.57 15.28 9.91

Morningstar Ratings as of 8/31/2016

Category: Technology

Overall out of 194 ★★★
3 Year out of 194
5 Year out of 188 ★★★
10 Year out of 151 ★★★★

Ratings are based on risk-adjusted returns

Lipper Ranking through 8/31/2016

Category: Science & Technology Funds

  Rank Percentile
1 Year 35 /36 95
3 Year 35 /36 95
5 Year 25 /35 70
10 Year 15 /33 45

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

Expense Ratios as of 4/30/2016

Net 1.15%
Gross 1.15%

3-Year Standard Deviation as of 8/31/2016

Fund 16.20
S&P North American Technology TR 14.70

3-Year MPT* Statistics as of 8/31/2016

Alpha -9.66
Beta 0.99
R-Squared 76.28
Sharpe Ratio 0.40
Capture Ratio

Upside: 81.70%

Downside: 135.84%

*Modern Portfolio Theory

Growth of a $10,000 Investment through 8/31/2016

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. Performance data quoted does not reflect any expenses or charges associated with owning a variable life insurance policy or variable annuity contract that invests in the Fund's shares. When such charges are deducted, actual investment performance in a variable annuity will be lower.

Fund Distributions

Historical Prices Inception 4/4/1997

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 4/4/1997

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.

Fund Documents

Top 10 Equity Holdings as a % of net assets as of 8/31/2016

Micron Technology, Inc. Micron Technology, Inc., engages in the manufacture and marketing of semiconductor devices worldwide. 5.27%
Aspen Technology, Inc. Aspen Technology, Inc., together with its subsidiaries, develops and supplies integrated software and services that enable the process industries to design, operate, manage, and optimize their business processes. 5.07%
Alliance Data Systems Corp. Alliance Data Systems Corporation,provides data-driven and transaction-based marketing and customer loyalty solutions primarily in the United States and Canada. 4.38%
Microsoft Corp. Microsoft Corporation is a multinational computer technology corporation that develops, manufactures, licenses and supports a wide range of software products for computing devices. 4.16%
Euronet Worldwide, Inc. Euronet Worldwide, Inc. is an electronic payments provider of payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, individual consumers. 4.06%
Microsemi Corp. Manufacturer of power-related applications including circuits and microchips for defense, aerospace, security and medical industries 4.06%
Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals Incorporated engages in the discovery, development, and commercialization of small molecule drugs for the treatment of serious diseases worldwide. 3.90%
Cerner Corp. Cerner Corporation (Cerner) is a supplier of healthcare information technology (HIT) solutions, healthcare devices and related services. Cerner solutions optimize processes for healthcare organizations. 3.78%
WNS (Holdings) Ltd. ADR WNS (Holdings) Limited provides business process management services comprising data, voice, analytical, and business transformation services worldwide 3.41%
ACI Worldwide, Inc. ACI Worldwide, Inc. engages in the development, marketing, installation, and support of software products and services to facilitate electronic payments worldwide. 3.22%
Total Portfolio Holdings DOWNLOAD (as of 6/30/2016)
updated quarterly, upon availability
Market Capitalization
as a % of equity assets as of 8/31/2016
Large 43.2%
Medium 39.9%
Small 17.0%
Median Market Cap (as of 8/31/2016) $3.2 bil
Top 10 Industry Allocation (as a % of Equity Holdings as of 8/31/2016)
Semiconductors 21.4%
Data Processing & Outsourced Services 13.3%
Application Software 12.3%
Internet Software & Services 10.4%
Biotechnology 7.0%
IT Consulting & Other Services 4.5%
Systems Software 4.4%
Health Care Technology 4.0%
Consumer Electronics 3.3%
Pharmaceuticals 3.0%
Sector Allocation as a % of equity assets as of 8/31/2016
Information Technology 72.75%
Health Care 17.73%
Consumer Discretionary 3.26%
Telecommunication Services 1.89%
Financials 1.73%
Utilities 1.08%
Industrials 0.99%
Materials 0.44%
Consumer Staples 0.13%
Portfolio Composition as a % of net assets as of 8/31/2016
Domestic Common Stock 78.93%
Foreign Common Stock 15.72%
Cash and Cash Equivalents 4.89%
Corporate Bonds 0.45%
Other Financial Instruments 0.01%
Equity Country Allocation as a % of equity assets as of 8/31/2016
United States 82.3%
Israel 4.2%
India 3.6%
Netherlands 3.3%
China 1.4%
Bermuda 1.3%
Spain 1.2%
Finland 1.1%
Germany 1.0%
Cyprus 0.7%
Total Portfolio Holdings
DOWNLOAD (as of 6/30/2016)

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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Risk Factors: The value of the Portfolio’s shares will change, and you could lose money on your investment. Because the Portfolio invests more than 25% of its total assets in the science and technology industry, the Portfolio’s performance may be more susceptible to a single economic, regulatory or technological occurrence than a portfolio that does not concentrate its investments in this industry. Securities of companies within specific industries or sectors of the economy may periodically perform differently than the overall market. In addition, the Porfolio’s performance may be more volatile than an investment in a portfolio of broad market securities and may underperform the market as a whole, due to the relatively limited number of issuers of science and technology related securities. Investment risks associated with investing in science and technology securities, in addition to other risks, include: operating in rapidly changing fields, abrupt or erratic market movements, limited product lines, markets or financial resources, management that is dependent on a limited number of people, short product cycles, aggressive pricing of products and services, new market entrants and obsolescence of existing technology. These and other risks are more fully described in the Portfolio’s prospectus.

Stylebox: The Morningstar Equity style box reveals a fund's investment strategy by displaying the fund's investment style and the market capitalization of the stocks owned.

The S&P North American Technology Sector Index is an unmanaged index comprised of U.S. securities classified under the GICS® technology sector and internet retail sub-industry. It is not possible to invest directly in an index.”

Ivy VIP Science and Tech formerly known as W&R Target Science and Technology Portfolio.

Consider All Factors. The value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not insured or guaranteed by the FDIC 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. These and other risks are more fully described in the portfolios's prospectus.

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

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. The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies. They are not offered or made available directly to the public. Not all portfolios may be offered at all broker/dealer firms.

Insurance and annuity products are offered through relationships with unaffiliated insurance companies

Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product. This and other important information is contained in the portfolio and variable insurance product prospectuses, which may be obtained here, from a financial advisor, or by contacting the applicable insurance company. Read them carefully before investing.

Fee Waiver and/or Expense Reimbursement: Through July 31, 2017, Ivy Investment Management Company (IICO), the Fund's investment manager, Ivy Distributors, Inc. (IDI), the Fund's Distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Fund'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 fund operating expenses for the Fund's Class A shares at 1.51%, Class I shares at 1.16%, and Class Y shares at 1.51. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Board of Trustees.

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.

Performance data quoted does not reflect any expenses or charges associated with owning a variable life insurance policy or variable annuity contract that invests in the Fund's shares. When such charges are deducted, actual investment performance in a variable annuity will be lower.

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 the degree to which a fund’s return varies from its previous returns or from the average of all similar funds, generally expressed as a percentage. The larger the standard deviation, the greater the likelihood (and risk) that a security’s performance will fluctuate from the average return. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized returns of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Morningstar Ratings: For each fund with at least a 3-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of all sales charges), placing emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund and rated separately.) A fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the share classes specified; other classes may have different performance characteristics.

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

Please remember that an investment in a mutual fund involves risk. Investment return and principal value of a mutual fund investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

YTD Prices can be updated 3 to 4 hours after the Daily Pricing information which can result in mismatching data.

Variable investment options are subject to market risk, including loss of principal, and are suitable for long-term investing, particularly for retirement. An investment in a Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 591/2 may be subject to a 10 percent IRS penalty in addition to taxes.