Fund Detail

Ivy Government Securities Fund

Track Fund
$5.41 NAV as of 11/24/2017
($0.01) / -0.18% Daily NAV Change
1.58% YTD (NAV) as of 11/24/2017 i

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Fund Summary

The Ivy Government Securities Fund seeks to provide income consistent with preservation of capital
Credit Quality
The Fund invests exclusively in a diversified portfolio of U.S. government securities.
Income Preservation
The fund seeks to generate a level of income consistent with capital preservation.
Experienced Management
Rick Perry has 24 years experience in the industry managing both high yield and investment-grade credit portfolios.
Morningstar Style Box
LTD MOD EXT
High
Medium
Low
Portfolio Management
  • Rick Perry, CFA , CPA

    • — Ivy Investment Management Company
    • — <1 Years with Fund
    • — 24 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
Daily Prices as of 11/24/2017
Net Asset Value (NAV) $5.41  
Daily NAV Change ($0.01) -0.18%
Weekly NAV Change $0.00 0.00%
Public Offering Price (POP) $5.65
Fund Facts
Ticker Symbol IGJAX
CUSIP 46600B227
Fund Code 690
Fund Type Fixed Income Funds
Fund Inception 4/10/1984
Class Inception 4/10/1984
Fiscal Year End September
Dividends Paid Daily, Paid Monthly
Fund Assets
(as of 10/31/2017)
$389.0 mil
Total Holdings
(as of 10/31/2017)
84
Lipper Category General U.S. Government Fds
Morningstar Category Intermediate Government
BenchmarkBloomberg Barclays US Govt/Mortgage 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.

Performance at NAV does not include the effect of sales charges, if it had, performance shown would be lower. Class A shares, including sales charges, reflects the maximum applicable front-end sales load.

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 1.49% -1.04% 0.72% 0.10% 2.41% 6.03%
Fund with 4.25% sales charge -2.84% -5.31% -0.76% -0.77% 1.97% 5.89%
Bloomberg Barclays US Govt/Mortgage TR USD 2.20% -0.14% 1.84% 1.57% 3.75% -0.13%
Lipper General U.S. Government Fds 2.07% -0.82% 1.22% 0.89% 3.13% 6.03%

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 1.76% -1.73% 1.04% 0.11% 2.49% 6.05%
Fund with 4.25% sales charge -2.58% -5.92% -0.40% -0.76% 2.05% 5.92%
Bloomberg Barclays US Govt/Mortgage TR USD 2.28% -0.78% 2.19% 1.55% 3.85% N/A
Lipper General U.S. Government Fds 2.14% -1.67% 1.51% 0.84% 3.21% 6.05%

Morningstar Ratings as of 10/31/2017

Category: Intermediate Government

Overall out of 236
3 Year out of 236 ★★
5 Year out of 226
10 Year out of 167

Ratings are based on risk-adjusted returns

Lipper Ranking through 10/31/2017

Category: General U.S. Government Fds

  Rank Percentile
1 Year 69 /101 68
3 Year 69 /94 73
5 Year 79 /90 87
10 Year 63 /74 84

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

Expense Ratios as of 9/1/2017

Net 1.00%
Gross 1.07%

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

Fund 2.89
Bloomberg Barclays US Govt/Mortgage TR USD 2.58

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

Alpha -1.56
Beta 1.07
R-Squared 92.11
Sharpe Ratio -0.04
Capture Ratio

Upside: 85.26%

Downside: 132.60%

*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 4/10/1984

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 4/10/1984

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

U.S. Treasury Notes, 2.1%, 7/31/2024 4.47%
U.S. Treasury Notes, 2.0%, 4/30/2024 3.94%
U.S. Treasury Notes, 1.5%, 7/15/2020 3.83%
U.S. Treasury Notes, 1.9%, 7/31/2022 3.32%
U.S. Treasury Notes, 1.4%, 7/31/2019 3.20%
Government National Mortgage Association Agency REMIC/CMO, 2.0%, 3/16/2042 2.93%
U.S. Treasury Notes, 2.4%, 5/15/2027 2.83%
U.S. Treasury Bonds, 9.0%, 11/15/2018 United States Treasury Bonds, 9.00%, 11/15/2018 2.21%
U.S. Treasury Notes, 2.3%, 8/15/2027 2.16%
U.S. Treasury Notes, 1.6%, 8/31/2022 2.02%
Total Portfolio Holdings DOWNLOAD (as of 9/30/2017)
updated quarterly, upon availability
Maturity as a % of fixed income assets as of 10/31/2017
<1 Year 5.00%
1-5 Years 57.90%
5-10 Years 27.80%
10-20 Years 3.30%
>20 Years 6.00%
Average Maturity 6.21 years
Effective Duration 5.28 years
Fixed Income Country Allocation (as a % of bond holdings as of 10/31/2017)
United States 100.0%
Quality as a % of fixed income assets as of 10/31/2017
Government Bonds 100.00%

Quality: Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's. 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 10/31/2017
Government Bonds 96.02%
Cash and Cash Equivalents 3.98%
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

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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.

Index Description: The Bloomberg Barclays US Govt/Mortgage TR USD - The Barclays U.S. Government/Mortgage-Backed Securities Index measures the performance of U.S. government bonds and mortgage-related securities. 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 Government Securities 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 Government Securities Fund were reorganized into Class I shares of Ivy Government Securities Fund; therefore, Ivy Government Securities Fund's Class Y shares also will have limited performance history.

Fee Waiver and/or Expense Reimbursement: Through July 31, 2019, 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 (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class A shares at 1.00%, Class B shares at 2.13%, Class C shares at 1.88% and Class I shares at 0.72%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees (Board).

Waddell & Reed Advisors (WRA) Government Securities Fund merged into Ivy Government Securities Fund on Oct. 16, 2017. The returns shown prior to this date reflect the performance of WRA Government Securities Fund, which was incepted on April 10, 1984. Ivy Government Securities Fund adopted that performance as the result of a reorganization in which it acquired all assets and liabilities of WRA Government Securities Fund. Prior to the reorganization, the Ivy Government Securities 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 Government Securities Fund's investment strategies. WRA Government Securities Fund's past performance does not necessarily indicate how Ivy Government Securities Fund will perform in the future.

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.

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.

Quality: Ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's. 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.