Fund Detail

Ivy IG International Small Cap Fund

Track Fund
$10.40 NAV as of 12/13/2018
($0.16) / -1.52% Daily NAV Change
-17.03% YTD (NAV) as of 12/13/2018 i

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Fund Summary

An international gateway to small cap opportunities
Sound philosophy
Seeks small-cap companies across the international landscape that exhibit perceived growth at a reasonable price.
Fundamental + Thematic
Fund employs a proprietary, fundamentally driven stock selection process while incorporating a top-down view for thematic drivers.
Proven manager
I.G. International Management Limited, the Fund's subadvisor, has managed international small cap strategies since 2002. The portfolio management team has more than 60 years industry experience.
Morningstar Style Box
Value Blend Growth
Large
Medium
Small
Portfolio Management
  • Martin Fahey, CFA

    • — I.G. International Management Limited
    • — 1 Years with Fund
    • — 30 Years in Industry
  • Bryan Mattei, CFA

    • — I.G. International Management Limited
    • — 1 Years with Fund
    • — 12 Years in Industry
  • Seamus Kelly

    • — I.G. International Management Limited
    • — <1 Years with Fund
    • — 20 Years in Industry
Growth of a $10,000 Investment through 11/30/2018

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
Perspectives
Portfolio Perspectives / 06.15.18

When bigger isn't always better: The case for Japanese small cap stocks

We believe Japanese small cap equities are far less exposed to shaky global trade dynamics and currency fluctuations than their large cap counterparts. Take a look at our top-five reasons that make them a compelling addition to an international small cap portfolio.
Daily Prices as of 12/13/2018
Net Asset Value (NAV) $10.40  
Daily NAV Change ($0.16) -1.52%
Weekly NAV Change ($0.22) -2.07%
Public Offering Price (POP) $10.40
Fund Facts
Ticker Symbol IVJIX
CUSIP 46600A666
Fund Code 468
Fund Type Global/International
Fund Inception 1/10/2017
Class Inception 1/10/2017
Fiscal Year End September
Dividends Paid December
Fund Assets
(as of 11/30/2018)
$160.5 mil
Total Equity Holdings
(as of 11/30/2018)
90
Total Holdings
(as of 11/30/2018)
92
Portfolio Turnover Rate
(as of 9/30/2018)
60%
Morningstar Category Foreign Small/Mid Growth
Lipper Category International Small-/Mid-Cap Growth Funds
BenchmarkMSCI EAFE Small Cap NR 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 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 11/30/2018

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV -13.94% -11.92% N/A N/A N/A 5.32%
MSCI EAFE Small Cap NR USD -12.23% -9.89% 6.31% 4.92% 11.98% -
Morningstar Foreign Small/Mid Growth -12.40% -10.29% 5.43% 4.26% 12.44% -

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 -3.45% 2.33% N/A N/A N/A 13.17%
MSCI EAFE Small Cap NR USD -2.19% 3.73% 12.39% 7.96% 9.68% -
Morningstar Foreign Small/Mid Growth -0.77% 5.37% 11.59% 7.59% 9.88% -

Morningstar Ranking through 11/30/2018

Category: Foreign Small/Mid Growth

  Rank Percentile
1 Year 72 /131 58

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 7/31/2018

Net 0.99%
Gross 1.45%

Growth of a $10,000 Investment through 11/30/2018

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 1/10/2017

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 1/10/2017

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 11/30/2018

NAV 0.35%
With Sales Charge 0.35%

Fund Documents

Top 10 Equity Holdings as a % of net assets as of 11/30/2018

Okamura Corp. Okamura is based in Japan and provides high-quality products and services for offices, education, healthcare, R&D, commercial facilities and distribution centers. 2.20%
SCSK Corp. SCSK Corporation provides a variety of IT services including system solutions, software development, and data center and communication network management. The Company sells packaged software and network equipment and develops software for distribution, manufacturing, and financial systems among others. SCSK handles infrastructure software as well. 2.13%
Matsumotokiyoshi Holdings Co. Ltd. Matsumotokiyoshi Holdings Co., Ltd. is a holding company established through reorganization of Matsumotokiyoshi. The Company operates a drug store chain, selling medicines, cosmetics, health foods, beauty care products, pets products, and household utensils in the Tokyo metropolitan area. The Company also operates supermarkets and home centers. 2.11%
Komeda Holdings Co. Ltd. 1.97%
GLP J-REIT 1.87%
Alstom 1.85%
OSG Corp. OSG Corp. manufactures machine tool equipment such as taps, end mills, thread rolling dies, gauges, and drills, as well as related machinery. It operates production plants in the U.S., Brazil and Taiwan. 1.78%
Spark Infrastructure Group 1.75%
Kenedix Office Investment Corp. 1.62%
TechnoPro Holdings, Inc. TechnoPro Holdings, Inc., engages in the provision of technician dispatch and contracting business related to machinery, electrical, electronic, embedded control, software development and maintenance, biochemistry, and construction management. The company was founded in 2006 and is headquartered in Tokyo, Japan. 1.61%
Total Portfolio Holdings DOWNLOAD (as of 9/30/2018)
updated quarterly, upon availability
Market Capitalization as a % of equity assets as of 11/30/2018
Large ( > $10 bil) 1.1%
Medium ($2 - $10 bil) 57.0%
Small ( < $2 bil) 42.0%
Median Market Cap (as of 11/30/2018) $2.2 bil
Top 10 Industry Allocation (as a % of Equity Holdings as of 11/30/2018)
Industrial Machinery 5.3%
Construction Machinery & Heavy Trucks 4.5%
Real Estate Operating Companies 3.7%
Industrial REITs 3.7%
Restaurants 3.6%
Regional Banks 3.2%
Auto Parts & Equipment 2.9%
Office Services & Supplies 2.9%
IT Consulting & Other Services 2.8%
Commodity Chemicals 2.7%
Sector Allocation as a % of equity assets as of 11/30/2018
Industrials 23.26%
Consumer Discretionary 18.04%
Real Estate 12.71%
Financials 10.93%
Materials 9.68%
Information Technology 8.85%
Communication Services 4.78%
Health Care 4.10%
Consumer Staples 3.61%
Energy 2.17%
Utilities 1.87%
Portfolio Composition as a % of net assets as of 11/30/2018
Foreign Common Stock 94.40%
Cash and Cash Equivalents 5.60%
Equity Country Allocation as a % of equity assets as of 11/30/2018
Japan 37.9%
United Kingdom 14.5%
France 8.2%
Germany 7.7%
Ireland 6.7%
Australia 6.4%
Singapore 3.8%
Hong Kong 2.2%
Spain 2.1%
Isle Of Man 1.9%
Austria 1.9%
Luxembourg 1.3%
Switzerland 1.2%
Netherlands 1.0%
Italy 0.9%
Estonia 0.9%
Belgium 0.8%
South Korea 0.8%
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. International investing involves additional risks including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. Investing in small-cap stocks may carry more risk than investing in stocks of larger more well-established companies. The value of a security believed by the Fund's manager to be undervalued may never reach what the manager believes to be its full value, or such security's value may decrease. 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.

The MSCI EAFE Small Cap Index is an equity index which captures small cap representation across developed markets and countries around the world, excluding the US and Canada. It is not possible to invest in an index.

Fee Waiver and/or Expense Reimbursement: Through January 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 1.45%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees (Board). Certain common expenses applicable to all share classes also may be waived to cap total annual ordinary fund operating expenses, which may serve to reduce the expense ratio of certain share classes.

Fee Waiver and/or Expense Reimbursement: Through January 31, 2020, IICO, the Fund’s investment manager, IDI, the Fund’s distributor, and/or 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) for the Fund’s Class I shares and Class N shares at 0.99%. Prior to that date, the expense limitation may not be terminated without the consent of the Board.

Fee Waiver and/or Expense Reimbursement: Through January 31, 2019, IDI and/or WISC have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to ensure that the total annual ordinary fund operating expenses of the Class Y shares do not exceed the total annual ordinary fund operating expenses of the Class A shares, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board.

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.

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.

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

The Fund is sub-advised by I.G. International Management Limited, which delegates to its subsidiary, I.G. Investment Management (Hong Kong) Limited, for additional portfolio management responsibilities. References to I.G. International Management Limited include both entities.