Fund Detail

Ivy Pictet Targeted Return Bond Fund

Track Fund
$10.06 NAV as of 9/18/2018
($0.01) / -0.10% Daily NAV Change
0.00% YTD (NAV) as of 9/18/2018 i

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Fund Summary

Flexibility for an uncertain interest rate environment
Risk and return
A focus on identifying opportunities that we believe balance risk and return across the economic cycle.
Looking long term
Seeks to produce consistent returns across the market cycle and amid a variety of market conditions.
Diversification
A strategy that seeks to diversify risks through a broad range of securities issued in the U.S. and internationally.
Portfolio Management
  • Andres Sanchez Balcazar, CFA

    • — Pictet Asset Management (Sub-adviser)
    • — 2 Years with Fund
    • — 18 Years in Industry
  • David Bopp, CFA

    • — Pictet Asset Management (Sub-adviser)
    • — 2 Years with Fund
    • — 14 Years in Industry
  • Thomas Hansen, CFA

    • — Pictet Asset Management (Sub-adviser)
    • — 2 Years with Fund
    • — 9 Years in Industry
Growth of a $10,000 Investment through 7/31/2018

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
Daily Prices as of 9/18/2018
Net Asset Value (NAV) $10.06  
Daily NAV Change ($0.01) -0.10%
Weekly NAV Change $0.02 0.20%
Public Offering Price (POP) $10.06
Fund Facts
Ticker Symbol IRBRX
CUSIP 46600B755
Fund Code 252
Fund Type Fixed Income Funds
Fund Inception 1/4/2016
Class Inception 1/4/2016
Fiscal Year End September
Dividends Paid March, June, September, December
Fund Assets
(as of 8/31/2018)
$241.7 mil
Total Holdings
(as of 8/31/2018)
249
Portfolio Turnover Rate
(as of 3/31/2018)
74%
Lipper Category Alternative Credit Focus
Morningstar Category Nontraditional Bond
BenchmarkBloomberg Barclays US Treasury Bill 1-3 Mon 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.

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

Monthly Rates of Return Average Annual Total Returns as of 8/31/2018

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV -0.10% 0.35% N/A N/A N/A 1.43%
Bloomberg Barclays US Treasury Bill 1-3 Mon TR USD 1.10% 1.45% 0.73% 0.45% 0.31% -
Lipper Alternative Credit Focus -0.03% 0.82% 2.91% 2.28% 3.54% -

Quarterly Rates of Return Average Annual Total Returns as of 6/30/2018

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV -0.70% 0.14% N/A N/A N/A 1.28%
Bloomberg Barclays US Treasury Bill 1-3 Mon TR USD 0.78% 1.29% 0.62% 0.38% 0.31% -
Lipper Alternative Credit Focus -0.46% 1.07% 2.48% 2.14% 3.50% -

Calendar Year Return

201320142015201620172008200920102011201220032004200520062007
Class N- - - - 2.27 - - - - - - - - - -
Bloomberg Barclays US Treasury Bill 1-3 Mon TR USD0.05 0.02 0.03 0.26 0.82 1.77 0.15 0.13 0.07 0.08 1.03 1.24 3.00 4.80 4.78

Lipper Ranking through 8/31/2018

Category: Alternative Credit Focus

  Rank Percentile
1 Year 151 /253 60

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

Expense Ratios as of 1/31/2018

Net 0.87%
Gross 1.05%

Growth of a $10,000 Investment through 7/31/2018

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 1/4/2016

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 1/4/2016

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 8/31/2018

NAV 0.75%
With Sales Charge 0.75%

Annualized 30-Day SEC Yield as of 8/31/2018

Subsidized 2.62%
Unsubsidized 2.29%

Fund Documents

Top 10 Holdings as a % of net assets as of 8/31/2018

U.S. Treasury Notes, 1.3%, 7/31/2023 5.14%
U.S. Treasury Notes, 2.0%, 2/28/2021 5.08%
U.S. Treasury Notes, 1.9%, 2/28/2022 4.87%
U.S. Treasury Notes, 2.5%, 1/31/2025 4.63%
Bundesrepublik Deutschland, 1.3%, 8/15/2048 4.40%
U.S. 2-Year Treasury Note, 12/28/2018 3.15%
Norwegian Government Bond, 1.8%, 2/17/2027 2.69%
Obrigacoes do Tesouro, 2.1%, 10/17/2028 2.67%
U.S. Treasury Bonds, 3.1%, 5/15/2048 2.22%
U.S. 10-Year Ultra Treasury Note, 12/28/2018 1.80%
Total Portfolio Holdings DOWNLOAD (as of 6/30/2018)
updated quarterly, upon availability
Fixed Income Country Allocation (as a % of bond holdings as of 8/31/2018)
United States 36.5%
Germany 6.7%
United Kingdom 6.1%
Norway 5.1%
France 4.9%
Netherlands 4.2%
Italy 4.2%
Portugal 2.9%
Spain 2.8%
Canada 2.4%
Luxembourg 1.7%
China 1.6%
South Africa 1.6%
Mexico 1.5%
Sweden 1.4%
Brazil 1.0%
Ireland 0.9%
Peru 0.9%
Hong Kong 0.8%
Indonesia 0.8%
Panama 0.8%
United Arab Emirates 0.7%
Australia 0.7%
Belgium 0.7%
Saudi Arabia 0.6%
Egypt 0.6%
Japan 0.6%
Singapore 0.5%
Israel 0.5%
South Korea 0.5%
Sri Lanka 0.5%
British Virgin Islands 0.5%
Jersey 0.4%
India 0.4%
Qatar 0.4%
Greece 0.4%
Bermuda 0.3%
Austria 0.3%
Turkey 0.3%
Columbia 0.3%
Argentina 0.3%
Switzerland 0.3%
Nigeria 0.3%
Lebanon 0.2%
Denmark 0.2%
Cayman Islands 0.2%
Croatia 0.2%
Oman 0.2%
Bahrain 0.2%
Dominican Republic 0.1%
Angola 0.1%
Quality as a % of fixed income assets as of 8/31/2018
Government Bonds 28.70%
NonRated 0.20%
AAA 11.10%
AA 2.80%
A 9.30%
BBB 27.60%
BB 14.80%
B 5.50%

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. 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 8/31/2018
Corporate Bonds 41.97%
Government Bonds 26.73%
Other Government Securities 24.46%
Cash and Cash Equivalents 6.15%
Other Financial Instruments 0.69%
Total Portfolio Holdings
DOWNLOAD (as of 6/30/2018)

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. 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. 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. 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, especially securities with longer maturities. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds.

The Fund may seek to manage exposure to various foreign currencies, which may involve additional risks. The value of securities, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates or exchange control regulations. Investing in foreign securities involves a number of risks that may not be associated with the U.S. markets and that could affect the Fund's performance unfavorably, such as greater price volatility; comparatively weak supervision and regulation of securities exchanges, fluctuation in foreign currency exchange rates and related conversion costs, adverse foreign tax consequences, or different and/ or less stringent financial reporting standards.

Mortgage-backed and asset-backed securities in which the Fund may invest are subject to prepayment risk and extension risk.

The Fund employs investment management techniques that differ from those often used by traditional bond funds, including a targeted return strategy, and may not always perform in line with the performance of the bond markets. The Fund is also non-diversified and may hold fewer securities than other funds and a decline in the value of these holdings would cause the Fund's overall value to decline to a greater degree than a more diversified fund. The Fund expects to use derivatives in pursuing its investment objective. The use of derivatives presents several risks including the risk that fluctuation in the values of the derivatives may not correlate perfectly with the overall securities markets or with the underlying asset from which the derivative's value is derived. Moreover, some derivatives are more sensitive to interest rate changes and market fluctuations than others, and the risk of loss may be greater than if the derivative technique(s) had not been used. These and other risks are more fully described in the Fund's prospectus.

Diversification does not guarantee a profit or protect against loss in a declining market. It is a method to manage risk.

Index Description: The Bloomberg Barclays U.S. Treasury Bills: 1-3 Month Index - Includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. In addition, the securities are denominated in U.S. dollars and are fixed rate and non-convertible. It is not possible to invest directly in an index.

Class R6 shares were renamed Class N on March 3, 2017.

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) for the Fund’s Class A shares at 1.38%; Class C shares at 2.08%; Class I shares at 1.00%; Class N shares at 0.87%; and Class Y shares at 1.25%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees of Ivy Funds (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 below its respective expense cap.

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.

The Ivy Targeted Return Fund was renamed Ivy Pictet Targeted Return Bond Fund on April 3, 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.

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.

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. 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.

The Fund is subadvised by Pictet Asset Management Limited (Pictet UK). Pictet UK delegates to its affiliate, Pictet Asset Management (Singapore) PTE Ltd (Pictet Singapore, and collectively with Pictet UK, Pictet), portfolio management responsibilities for Fund assets allocated to Asian investments. References to Pictet Asset Management include both entities.

The Fund is managed by Ivy Investment Management Company (IICO) and subadvised by Pictet Asset Management SA (Pictet SA). IICO oversees the Fund's investments and its business operations. Pictet SA chooses the Fund's investments and provides related advisory services. Pictet SA delegates to its affiliate, Pictet Asset Management Limited (Pictet UK, and collectively with Pictet SA, Pictet), certain portfolio management, trading and other responsibilities for the Fund.

Sarah Hargreaves served as a portfolio manager on the Fund until May 31, 2018.