Fund Detail

Ivy Limited-Term Bond Fund

Track Fund
$10.82 NAV as of 4/26/2017
$0.01 / 0.09% Daily NAV Change
0.89% YTD (NAV) as of 4/26/2017 i

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Fund Summary

Managing interest rate risk with income potential
Duration
Duration measures the sensitivity of a fixed income investment to interest rate changes. Fund invests in short-term bonds, which have low duration and less rate sensitivity and longer-duration securities.
Discipline
Invests primarily in high quality securities
Diversification
Bond funds can offer income and diversification to an all-equity portfolio.
Morningstar Style Box
LTD MOD EXT
High
Medium
Low
Portfolio Management
  • Susan K. Regan

    • — Ivy Investment Management Company
    • — 2 Years with Fund
    • — 29 Years in Industry
Growth of a $10,000 Investment through 3/31/2017

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 4/26/2017
Net Asset Value (NAV) $10.82  
Daily NAV Change $0.01 0.09%
Weekly NAV Change ($0.02) -0.18%
Public Offering Price (POP) $11.10
Fund Facts
Ticker Symbol WLTAX
CUSIP 466000882
Fund Code 603
Fund Type Fixed Income Funds
Fund Inception 9/21/1992
Class Inception 8/17/2000
Fiscal Year End March
Dividends Paid Daily, Paid Monthly
Fund Assets
(as of 3/31/2017)
$1.6 bil
Total Equity Holdings
(as of 3/31/2017)
3
Total Holdings
(as of 3/31/2017)
219
Portfolio Turnover Rate
(as of 9/30/2016)
37%
Lipper Category Short-Intmdt Investment Grade Debt Funds
Morningstar Category Short-Term Bond
BenchmarkBloomberg Barclays Govt/Credit 1-5 Yr 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 3/31/2017

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV 0.58% 0.99% 1.18% 1.01% 2.99% 3.45%
Fund with 2.50% sales charge -1.97% -1.55% 0.33% 0.50% 2.73% 3.29%
Bloomberg Barclays Govt/Credit 1-5 Yr TR USD 0.57% 0.52% 1.38% 1.30% 2.95% 3.81%
Lipper Short-Intmdt Investment Grade Debt Funds 0.75% 1.55% 1.43% 1.69% 3.14% 3.93%

Quarterly Rates of Return Average Annual Total Returns as of 3/31/2017

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV 0.58% 0.99% 1.18% 1.01% 2.99% 3.45%
Fund with 2.50% sales charge -1.97% -1.55% 0.33% 0.50% 2.73% 3.29%
Bloomberg Barclays Govt/Credit 1-5 Yr TR USD 0.57% 0.52% 1.38% 1.30% 2.95% 3.81%
Lipper Short-Intmdt Investment Grade Debt Funds 0.75% 1.55% 1.43% 1.69% 3.14% 3.93%

Calendar Year Return

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Class A 5.72 7.41 5.97 3.55 2.99 2.67 -0.73 0.85 0.45 2.01
Bloomberg Barclays Govt/Credit 1-5 Yr TR USD 7.27 5.13 4.62 4.08 3.14 2.24 0.28 1.42 0.97 1.56

Morningstar Ratings as of 3/31/2017

Category: Short-Term Bond

Overall out of 444 ★★★
3 Year out of 444 ★★★
5 Year out of 359 ★★
10 Year out of 257 ★★★★

Ratings are based on risk-adjusted returns

Lipper Ranking through 3/31/2017

Category: Short-Intmdt Investment Grade Debt Funds

  Rank Percentile
1 Year 108 /184 59
3 Year 106 /156 68
5 Year 96 /117 82
10 Year 50 /83 60

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

Expense Ratios as of 7/31/2016

Net 0.88%
Gross 0.88%

5-Year Standard Deviation as of 3/31/2017

Fund 1.64
Bloomberg Barclays Govt/Credit 1-5 Yr TR USD 1.23

5-Year MPT* Statistics as of 3/31/2017

Alpha -0.54
Beta 1.22
R-Squared 84.14
Sharpe Ratio 0.55
Capture Ratio

Upside: 110.94%

Downside: 149.55%

*Modern Portfolio Theory

Growth of a $10,000 Investment through 3/31/2017

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 8/17/2000

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 8/17/2000

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 3/31/2017

NAV 1.65%
With Sales Charge 1.60%

Annualized 30-Day SEC Yield as of 3/31/2017

Subsidized 1.56%
Unsubsidized 1.56%

Fund Documents

Top 10 Holdings as a % of net assets as of 3/31/2017

U.S. Treasury Notes, 2.8%, 2/28/2018 2.20%
U.S. Treasury Notes, 0.6%, 9/30/2017 1.85%
U.S. Treasury Notes, 1.4%, 8/31/2020 1.23%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO, 4.4%, 12/25/2048 1.19%
Northern Trust Corp., 2.4%, 8/2/2022 1.16%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO, 4.3%, 12/25/2044 1.11%
Federal Home Loan Bank, 1.7%, 7/25/2031 1.10%
Federal National Mortgage Association Agency REMIC/CMO, 2.0%, 6/25/2039 1.09%
Ares Capital Corp., 3.9%, 1/15/2020 1.04%
Goldman Sachs Group, Inc. (The), 2.6%, 12/27/2020 0.99%
Total Portfolio Holdings DOWNLOAD (as of 12/31/2016)
updated quarterly, upon availability
Maturity as a % of fixed income assets as of 3/31/2017
<1 Year 22.50%
1-5 Years 61.10%
5-10 Years 13.40%
10-20 Years 2.70%
>20 Years 0.30%
Average Maturity 2.97 years
Effective Duration 2.67 years
Fixed Income Country Allocation (as a % of bond holdings as of 3/31/2017)
United States 92.9%
Netherlands 1.5%
Japan 1.2%
United Kingdom 1.1%
Luxembourg 1.1%
Canada 1.0%
France 0.7%
Norway 0.4%
Cayman Islands 0.1%
Quality as a % of fixed income assets as of 3/31/2017
Government Bonds 24.10%
NonRated 2.30%
AAA 1.60%
AA 9.80%
A 23.40%
BBB 36.20%
BB 1.80%
CCC 0.80%

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 3/31/2017
Corporate Bonds 70.04%
Government Bonds 23.65%
Cash and Cash Equivalents 2.02%
General Obligation Bonds 1.62%
Asset-Backed Securities 1.14%
Revenue Bonds 0.84%
Mortgage-Backed Securities 0.69%
Total Portfolio Holdings
DOWNLOAD (as of 12/31/2016)

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 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. 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 Barclays Govt/Credit 1-5 Yr TR USD - The Barclays 1-5 Year U.S. Government/Credit Index includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of between 1 and 5 years and are publicly issued. 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.

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.

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 RatingTM 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 includes the effects of sales charges, loads, and redemption fees, as applicable. 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. Certain information contained herein: (1) is proprietary to Morningstar and/or its content providers; (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.

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.