Fund Detail

Ivy Small Cap Core Fund

Track Fund
$18.36 NAV as of 7/20/2017
$0.03 / 0.16% Daily NAV Change
7.12% YTD (NAV) as of 7/20/2017 i

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Fund Summary

Seeking small companies with the potential for big opportunities
Conviction
Fund holds a limited number of stocks, allowing portfolio manager to interact with company management and for the best ideas to drive performance.
Focus on performance catalysts
Manager focuses on identifying inflection points in company fundamentals. He believes that with inexpensive stocks it is important to wait and see if a company’s fundamentals stabilize/inflect before fully entering a position.
Diversification & balance
Fund strives to participate in up markets while attempting to keep downdraft effects to a minimum. With a concentrated portfolio, this can be accomplished by focusing on diversification and making sure there is a balance between stable value names and higher risk/reward names. Diversification does not ensure a profit or protect against loss in a declining market.
Morningstar Style Box
Value Blend Growth
Large
Medium
Small
Portfolio Management
  • Kenneth G. Gau

    • — Ivy Investment Management Company
    • — 2 Years with Fund
    • — 23 Years in Industry
Growth of a $10,000 Investment through 6/30/2017

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 7/20/2017
Net Asset Value (NAV) $18.36  
Daily NAV Change $0.03 0.16%
Weekly NAV Change $0.25 1.38%
Public Offering Price (POP) $19.48
Fund Facts
Ticker Symbol IYSAX
CUSIP 465898435
Fund Code 645
Fund Type Domestic Equity
Fund Inception 1/31/1997
Class Inception 1/31/1997
Fiscal Year End March
Dividends Paid March, June, September, December
Fund Assets
(as of 6/30/2017)
$567.4 mil
Total Equity Holdings
(as of 6/30/2017)
53
Total Holdings
(as of 6/30/2017)
57
Portfolio Turnover Rate
(as of 3/31/2017)
133%
Lipper Category Small-Cap Core Funds
Morningstar Category Small Blend
BenchmarkRussell 2000 Value TR USD
BenchmarkRussell 2000 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 6/30/2017

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV 4.67% 21.60% 8.38% 14.82% 7.22% 9.29%
Fund with 5.75% sales charge -1.37% 14.62% 6.26% 13.46% 6.59% 8.97%
Russell 2000 Value TR USD 0.54% 24.86% 7.02% 13.39% 5.92% 9.46%
Russell 2000 TR USD 4.99% 24.60% 7.36% 13.70% 6.92% 8.24%
Lipper Small-Cap Core Funds 3.54% 20.88% 5.98% 12.86% 6.38% 9.23%

Quarterly Rates of Return Average Annual Total Returns as of 6/30/2017

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV 4.67% 21.60% 8.38% 14.82% 7.22% 9.29%
Fund with 5.75% sales charge -1.37% 14.62% 6.26% 13.46% 6.59% 8.97%
Russell 2000 Value TR USD 0.54% 24.86% 7.02% 13.39% 5.92% 9.46%
Russell 2000 TR USD 4.99% 24.60% 7.36% 13.70% 6.92% 8.24%
Lipper Small-Cap Core Funds 3.54% 20.88% 5.98% 12.86% 6.38% 9.23%

Calendar Year Return

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Class A -4.81 -25.40 28.69 25.88 -13.41 18.15 32.79 6.83 -6.06 28.49
Russell 2000 Value TR USD -9.78 -28.92 20.58 24.50 -5.50 18.05 34.52 4.22 -7.47 31.74
Russell 2000 TR USD 21.31

Morningstar Ratings as of 6/30/2017

Category: Small Blend

Overall out of 646 ★★★★
3 Year out of 646 ★★★★
5 Year out of 545 ★★★★
10 Year out of 389 ★★★★

Ratings are based on risk-adjusted returns

Lipper Ranking through 6/30/2017

Category: Small-Cap Core Funds

  Rank Percentile
1 Year 409 /949 44
3 Year 140 /794 18
5 Year 90 /680 14
10 Year 146 /497 30

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

Expense Ratios as of 7/5/2017

Net 1.50%
Gross 1.50%

5-Year Standard Deviation as of 6/30/2017

Fund 11.95
Russell 2000 Value TR USD 13.88
Russell 2000 TR USD N/A

5-Year MPT* Statistics as of 6/30/2017

Alpha 3.35
Beta 0.81
R-Squared 88.36
Sharpe Ratio 1.23
Capture Ratio

Upside: 89.83%

Downside: 73.54%

*Modern Portfolio Theory

Growth of a $10,000 Investment through 6/30/2017

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 1/31/1997

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 1/31/1997

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 6/30/2017

Webster Financial Corp. Webster Financial Corp. operates as the bank and financial holding company for Webster Bank, National Association that provides financial services to individuals, families, and businesses in the U.S. 5.20%
Tivity Health, Inc. Tivity Health, Inc. provides health fitness solutions. The Company offers fitness programs, health benefits management, physical therapy, and other related services. Tivity Health serves customers in the United States. 5.00%
Visteon Corp. Visteon Corporation (Visteon) is a global supplier of climate, electronics, interiors and lighting systems, modules and components to global automotive original equipment manufacturers (OEMs). The Company operates in five segments: Climate, Electronics, Interiors, Lighting and Services. 4.76%
Pinnacle Foods, Inc. Pinnacle Foods Inc., through its subsidiaries, manufactures, markets, and distributes branded convenience food products in North America. 4.57%
Take-Two Interactive Software, Inc. Take-Two Interactive Software, Inc. is an American multinational publisher, developer, and distributor of video games and video game peripherals. 4.43%
Sensient Technologies Corp. Sensient Technologies Corporation supplies and manufactures a variety of ink-jet inks, cosmetic and pharmaceutical additives, and food and beverage flavors. 4.23%
Bob Evans Farms, Inc. Bob Evans Farms, Inc. of Delaware operates as a producer and distributor refrigerated dinner sides. The Company offers a variety of pork sausages, mashed potatoes, macaroni and cheeses, frozen handheld breakfast items, bacon products, and other convenience foods. Bob Evans Farms serves retail customers throughout the United States. 4.00%
Laredo Petroleum Holdings, Inc. Laredo Petroleum, Inc. operates as an independent energy company in the U.S. It focuses on the acquisition, exploration, and development of oil and natural gas properties, as well as the transportation of oil and natural gas primarily in the Permian Basin in West Texas. 3.68%
Uniti Group, Inc. Uniti Group Inc. operates as a real estate investment trust. The Company provides wireless infrastructure solutions for communications industry. Uniti Group serves customers in the United States and Latin America. 3.59%
Beacon Roofing Supply, Inc. Beacon Roofing Supply, Inc. distributes residential and non-residential roofing materials in the United States and Canada. The Company also distributes other complementary building materials, including siding, windows, specialty lumber products, and waterproofing systems for residential and non-residential building exteriors. 3.21%
Total Portfolio Holdings DOWNLOAD (as of 3/31/2017)
updated quarterly, upon availability
Market Capitalization
as a % of equity assets as of 6/30/2017
Large 0.0%
Medium 67.2%
Small 32.8%
Median Market Cap (as of 6/30/2017) $2.4 bil
Top 10 Industry Allocation (as a % of Equity Holdings as of 6/30/2017)
Regional Banks 11.7%
Specialty Chemicals 7.0%
Packaged Foods & Meats 6.3%
Health Care Services 5.6%
Auto Parts & Equipment 4.8%
Home Entertainment Software 4.5%
Trucking 4.3%
Health Care Technology 4.2%
Restaurants 4.0%
Oil & Gas Exploration & Production 3.7%
Sector Allocation as a % of equity assets as of 6/30/2017
Information Technology 20.33%
Health Care 13.73%
Financials 13.05%
Consumer Discretionary 12.26%
Industrials 12.16%
Materials 7.84%
Consumer Staples 7.47%
Real Estate 5.61%
Energy 3.72%
Utilities 1.93%
Telecommunication Services 1.90%
Portfolio Composition as a % of net assets as of 6/30/2017
Domestic Common Stock 98.80%
Cash and Cash Equivalents 1.20%
Equity Country Allocation as a % of equity assets as of 6/30/2017
United States 100.0%
Total Portfolio Holdings
DOWNLOAD (as of 3/31/2017)

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. Investing in small-cap growth and value stocks may carry more risk than investing in stocks of larger, more well-established companies. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. Value stocks are stocks of companies that may have experienced adverse developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of the Fund’s manager, undervalued. Such security may never reach what the manager believes to be its full value, or such security’s value may decrease. The Fund typically holds a limited number of stocks (generally 40 to 60). As a result, the appreciation or depreciation of any one security held by the Fund may have a greater impact on the Fund’s net asset value than it would if the Fund invested in a larger number of securities. 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: Russell 2000 Value is an unmanaged index comprised of securities that represent the small cap sector of the stock market. It is not possible to invest directly in an index.

Index Description: The Russell 2000 Index is an index measuring the performance approximately 2,000 small-cap companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. It is not possible to invest directly in an index.

The Advantus Venture Fund merged into the Ivy Small Cap Value Fund on Dec. 8, 2003 (since renamed Ivy Small Cap Core Fund on March 3, 2017). The performance shown for periods prior to this date is that of the Advantus Venture Fund Class A shares, restated to reflect current sales charges applicable to Ivy Small Cap Core Fund Class A shares. Performance has not been restated to reflect the fees and expenses applicable to the Ivy Small Cap Core Fund. If these expenses were reflected, performance shown would differ. Fund performance after March 3, 2017, may significantly differ from prior performance due to changes made to the Fund's investment strategies.

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.

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

Class T shares were launched on July 5, 2017.

Fee Waiver and/or Expense Reimbursement: Through July 31, 2018, 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 12b-1 and/or shareholder servicing fees to ensure that the total annual ordinary fund operating expenses of the Class T shares and 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 of Trustees (Board).

Prior to March 3, 2017, the Ivy Small Cap Core Fund was known as the Ivy Small Cap Value Fund and its benchmark was the Russell 2000 Value Index. The Fund’s benchmark is now the Russell 2000 Index. These changes were made to more closely align with the Fund’s investment objectives.

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.

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.

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