Fund Detail

Ivy Small Cap Growth Fund

Track Fund
$16.06 NAV as of 11/24/2017
$0.05 / 0.31% Daily NAV Change
20.30% YTD (NAV) as of 11/24/2017 i

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Fund Summary

Seeking small companies with large-cap opportunities
Sound philosophy
Seeks small-cap growth companies that are industry leaders, serving markets that are growing substantially and producing solid financial returns.
Experience & vision
The portfolio management team has more than 70 years of combined investment industry experience and 40 years of working with small-cap strategies.
Consistent process
Since lead portfolio manager Tim Miller assumed management duties in April 2010, the Fund has had competitive performance versus its Morningstar Small Growth peers.
Fund outperformed small-cap growth peers and benchmark
Morningstar Style Box
Value Blend Growth
Large
Medium
Small
Portfolio Management
  • Timothy J. Miller, CFA

    • — Ivy Investment Management Company
    • — 7 Years with Fund
    • — 38 Years in Industry
  • Kenneth G. McQuade

    • — Ivy Investment Management Company
    • — 1 Years with Fund
    • — 22 Years in Industry
  • Bradley P. Halverson, CFA

    • — Ivy Investment Management Company
    • — 1 Years with Fund
    • — 15 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
Perspectives

Manager Video

Daily Prices as of 11/24/2017
Net Asset Value (NAV) $16.06  
Daily NAV Change $0.05 0.31%
Weekly NAV Change $0.44 2.82%
Public Offering Price (POP) $16.06
Fund Facts
Ticker Symbol WRGCX
CUSIP 466000700
Fund Code 302
Fund Type Domestic Equity
Fund Inception 9/21/1992
Class Inception 9/21/1992
Fiscal Year End March
Dividends Paid December
Fund Assets
(as of 10/31/2017)
$1.1 bil
Total Equity Holdings
(as of 10/31/2017)
81
Total Holdings
(as of 10/31/2017)
94
Portfolio Turnover Rate
(as of 3/31/2017)
53%
Lipper Category Small-Cap Growth Funds
Morningstar Category Small Growth
BenchmarkRussell 2000 Growth 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. For Class C shares, a 1% CDSC applies to the lesser of amount invested or redemption value of shares redeemed within twelve months after the purchase date.

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 18.13% 28.81% 10.23% 13.64% 8.03% 12.05%
Fund with maximum 1.00% CDSC 17.13% 28.81% 10.23% 13.64% 8.03% 12.05%
Russell 2000 Growth TR USD 18.62% 31.00% 10.51% 15.36% 8.16% %
Lipper Small-Cap Growth Funds 19.31% 29.16% 9.48% 13.73% 7.22% 10.61%

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 16.70% 21.62% 12.06% 12.59% 8.21% 12.04%
Fund with maximum 1.00% CDSC 15.70% 21.62% 12.06% 12.59% 8.21% 12.04%
Russell 2000 Growth TR USD 16.81% 20.98% 12.17% 14.28% 8.47% %
Lipper Small-Cap Growth Funds 17.06% 19.85% 10.69% 12.63% 7.44% 10.54%

Calendar Year Return

2012201320142015201620072008200920102011200220032004200520061997199819992000200119951996
Class C14.37 39.91 2.51 -2.79 12.73 7.04 -38.32 41.94 34.60 -5.74 -25.82 35.31 12.95 11.75 5.61 21.12 44.57 61.42 -16.21 -2.64 32.14 2.30
Russell 2000 Growth TR USD14.59 43.30 5.60 -1.38 11.32 7.05 -38.54 34.47 29.09 -2.91 - 48.54 14.31 4.15 13.35 - - - - - - -

Morningstar Ratings as of 10/31/2017

Category: Small Growth

Overall out of 598 ★★★★
3 Year out of 598 ★★★
5 Year out of 530 ★★★
10 Year out of 397 ★★★★

Ratings are based on risk-adjusted returns

Lipper Ranking through 10/31/2017

Category: Small-Cap Growth Funds

  Rank Percentile
1 Year 286 /550 52
3 Year 203 /494 42
5 Year 238 /448 54
10 Year 110 /337 33

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

Expense Ratios as of 7/5/2017

Net 2.07%
Gross 2.07%

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

Fund 13.44
Russell 2000 Growth TR USD 14.57

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

Alpha 0.07
Beta 0.89
R-Squared 92.01
Sharpe Ratio 1.00
Capture Ratio

Upside: 87.82%

Downside: 86.67%

*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 9/21/1992

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 9/21/1992

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 10/31/2017

AMN Healthcare Services, Inc. U.S. health care staffing, recruitment and workforce solutions company 2.77%
Mercury Computer Systems, Inc. Mercury Systems is a commercial provider of secure sensor and mission processing subsystems. Mercury’s solutions power a variety of critical defense and intelligence programs. 2.63%
XPO Logistics, Inc. XPO Logistics, Inc. provides logistics services. The Company offers expedited airfreight forwarding, ground and ocean movement, warehousing management, order fulfillment, and reverse logistics. XPO Logistics serves customers throughout North America. 2.34%
RE/MAX Holdings, Inc., Class A RE/MAX Holdings, Inc. operates as a franchisor of residential and commercial real estate brokerage services in the U.S. and internationally. 2.23%
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. 2.15%
Booz Allen Hamilton Holding Corp. Booz Allen Hamilton Holding Corp. provides management and technology consulting services to the U.S. government in the defense, intelligence, and civil markets. The Company offers economic and business analysis, information technology, intelligence and operations analysis, modeling and simulation, organization, and other consulting services. 2.15%
Ultimate Software Group, Inc. (The) The Ultimate Software Group, Inc. (Ultimate) provides unified human capital management (HCM) software-as-a-service (SaaS) solutions for global businesses. Ultimate’s UltiPro software (UltiPro) is a SaaS-based solution designed to deliver the functionality needed to manage the employment life cycle. 2.05%
Power Integrations, Inc. 1.86%
Paycom Software, Inc. Paycom Software, Inc. designs and develops software solutions. The Company provides data analytical software products to manage the employment life cycle from recruitment to retirement. Paycom Software serves customers in the United States. 1.78%
John Bean Technologies Corp. 1.77%
Total Portfolio Holdings DOWNLOAD (as of 9/30/2017)
updated quarterly, upon availability
Market Capitalization
as a % of equity assets as of 10/31/2017
Large 1.6%
Medium 77.8%
Small 20.7%
Median Market Cap (as of 10/31/2017) $3.1 bil
Top 10 Industry Allocation (as a % of Equity Holdings as of 10/31/2017)
Application Software 12.1%
Health Care Equipment 6.8%
Regional Banks 5.8%
Industrial Machinery 5.3%
Semiconductors 4.9%
Internet Software & Services 4.4%
Restaurants 4.1%
Health Care Services 4.1%
Trading Companies & Distributors 4.0%
IT Consulting & Other Services 3.6%
Sector Allocation as a % of equity assets as of 10/31/2017
Information Technology 30.71%
Industrials 20.97%
Consumer Discretionary 15.96%
Health Care 15.61%
Financials 6.74%
Energy 4.01%
Materials 2.65%
Real Estate 2.34%
Consumer Staples 1.01%
Portfolio Composition as a % of net assets as of 10/31/2017
Domestic Common Stock 92.77%
Cash and Cash Equivalents 4.95%
Foreign Common Stock 2.28%
Other Financial Instruments 0.00%
Equity Country Allocation as a % of equity assets as of 10/31/2017
United States 97.2%
Netherlands 1.4%
Thailand 1.0%
Canada 0.5%
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. Investing in small-cap stocks may carry more risk than investing in stocks of larger more well-established companies. 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. Not all funds or fund classes may be offered at all broker/dealers. These and other risks are more fully described in the Fund’s prospectus.

Index Description: Russell 2000 Growth 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.

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.

For Class C shares, performance prior to 3/24/00 is based on the fund's original Class B shares, which were combined with Class C Shares, effective 3/24/00, and redesignated as Class C shares. New Class B shares with fees and expenses different than the original Class B shares were added to Ivy Funds on 6/30/00.

Fee Waiver and/or Expense Reimbursement: Through July 31, 2018, 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 E shares at 1.35%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees (Board).

Fee Waiver and/or Expense Reimbursement: Through July 31, 2018, 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 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.

Class T shares were launched on July 5, 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.

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.

Tim Miller is the Portfolio Manager of Ivy Small Cap Growth Fund and has held his fund responsibilities since April 1, 2010.