Waddell & Reed

Fund Detail

Ivy Balanced Fund
Class A Shares

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Fund Facts
Ticker Symbol IBNAX
CUSIP 465898625
Fund Code 644
Fund Type Specialty Funds
Fund Inception 11/16/1987
Class Inception 11/16/1987
Fiscal Year End March
Dividends Paid March, June, September, December
Fund Assets (as of 11/30/2014) $2.2 bil
Total Equity Holdings (as of 11/30/2014) 55
Total Holdings (as of 11/30/2014) 241
Lipper Category Mixed-Asset Target Alloc Growth Funds
Morningstar Category Aggressive Allocation
Benchmarks S&P 500 TR USD
Barclays US Govt/Credit TR USD
Daily Prices
as of 12/19/2014
Net Asset Value (NAV) $24.95
NAV Change ($) $0.05
NAV Change (%) 0.20%
Weekly NAV Change ($) $0.55
Weekly NAV Change (%) 2.25%
Public Offering Price (POP) $26.47
Historical Prices & Distributions
Please select a date
Fund Description
Fund Objective
To seek to provide total return through a combination of capital appreciation and current income.

Investment Approach
The Fund invests primarily in a mix of stocks, debt securities and short-term investments, depending on market conditions. On the equity side, we follow a core investing strategy and seek companies that we believe possess attractive business economics, are in a strong financial condition and are selling at attractive valuations, both on a relative and an absolute basis. In selecting debt securities, we seek what we feel are high-quality securities with minimal credit risk. We use the same analysis on the sell side to determine if a security is still undervalued or maintaining minimal credit risk.
Morningstar Style Box
Source: Morningstar
Returns and Expenses

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. Class A shares, including sales charges, reflects the maximum applicable front-end sales load.

Monthly Rates of Return Average Annual Total Returns
as of 11/30/2014
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV 7.75% 9.47% 14.17% 12.16% 8.11% 8.24%
Fund with 5.75% sales charge 1.53% 3.17% 11.93% 10.84% 7.47% 8.00%
S&P 500 TR USD 13.98% 16.86% 20.93% 15.96% 8.06% N/A
Barclays US Govt/Credit TR USD 5.93% 5.28% 3.17% 4.30% 4.80% N/A
Lipper Mixed-Asset Target Alloc Growth Funds 7.03% 8.72% 12.92% 10.26% 6.27% N/A
Quarterly Rates of Return Average Annual Total Returns
as of 9/30/2014
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV 3.94% 10.92% 15.70% 11.96% 8.24% 8.14%
Fund with 5.75% sales charge -2.06% 4.52% 13.44% 10.63% 7.60% 7.90%
S&P 500 TR USD 8.34% 19.73% 22.99% 15.70% 8.11% N/A
Barclays US Govt/Credit TR USD 4.12% 4.08% 2.54% 4.27% 4.59% N/A
Lipper Mixed-Asset Target Alloc Growth Funds 4.05% 10.57% 14.43% 10.12% 6.45% N/A
Expense Ratios
as of 7/31/2014
Net 1.15%
Gross 1.15%
12-Month Trailing Distribution Yield
as of 11/30/2014
NAV 0.44%
With sales charge 0.42%
Annualized 30-Day SEC Yield
as of 11/30/2014
Subsidized 0.59%
Unsubsidized 0.59%
Growth of a $10,000 Investment
through 11/30/2014
 Balanced A
 S&P 500 TR USD
 Barclays US Govt/Credit TR USD

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.

Ratings and Rankings
Lipper Rankings
as of 11/30/2014
Category: Mixed-Asset Target Alloc Growth Funds
  Rank Percentile
1 Year 205 / 559 37
3 Year 146 / 501 30
5 Year 42 / 469 9
10 Year 18 / 314 6

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

Morningstar Ratings
as of 11/30/2014
Category: Aggressive Allocation
Overall (out of 341 Aggressive Allocation)
3 Year (out of 341 Aggressive Allocation)
5 Year (out of 308 Aggressive Allocation)
10 Year (out of 197 Aggressive Allocation)

Ratings are based on risk-adjusted returns.

Holdings
Portfolio Composition
(as a % of net assets as of 11/30/2014)
Domestic Common Stock 66.46%
Corporate Bonds 21.75%
Cash and Cash Equivalents 6.03%
Foreign Common Stock 3.89%
Government Bonds 1.88%
Sector Allocation
(as a % of equity holdings as of 11/30/2014)
Consumer Discretionary 21.5%
Information Technology 17.7%
Industrials 16.9%
Financials 13.4%
Energy 10.1%
Health Care 7.7%
Consumer Staples 6.7%
Materials 5.3%
Telecommunication Services 0.7%
Top 10 Equity Holdings
(as a % of net assets as of 11/30/2014)
L Brands, Inc. operates as a specialty retailer of women?'s intimate and other apparel, beauty and personal care products, and accessories. The company was formerly known as Limited Brands, Inc. and changed its name to L Brands, Inc. in March 2013. Limited Brands, Inc. 2.3%
Union Pacific Corporation owns the largest railroad in the U.S. It's diversified business mix includes agricultural products, automotive, chemicals, energy, industrial products and intermodal.Union Pacific Corp. 2.1%
The Company has businesses engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing its products and services nationally and others in its markets located in Pennsylvania, Virginia, Missouri, Wisconsin and Georgia. It also provides products and services internationally. PNC Financial Services Group, Inc. (The) 2.0%
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions worldwide.Apple, Inc. 1.9%
Southwest Airlines Co. 1.8%
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company.JPMorgan Chase & Co. 1.7%
The Boeing Company (Boeing) is an aerospace company. Boeing is engaged in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services.Boeing Co. (The) 1.7%
Applied Materials, Inc. provides nanomanufacturing technology solutions for the semiconductor, flat panel display, solar, and related industries worldwide.Applied Materials, Inc. 1.7%
The Home Depot, Inc. (The Home Depot) is a home improvement retailer. The Home Depot stores sell an assortment of building materials, home improvement and lawn and garden products and provide a number of services.Home Depot, Inc. (The) 1.6%
Cummins Inc. is a diesel engine manufacturer. Cummins designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products.Cummins, Inc. 1.6%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 9/30/2014)
Quality
(as a % of bond holdings as of 11/30/2014)
Gov't 8.0 %
AA 5.2 %
A 38.3 %
BBB 30.5 %
BB 13.4 %
B 3.0 %
CCC 1.6 %
Below CCC 0.0 %

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.

Maturity
(as a % of bond holdings as of 11/30/2014)
<1 Year 20.4 %
1-5 Years 66.9 %
5-10 Years 11.5 %
10-20 Years 1.3 %
>20 Years 0.0 %
Average Maturity 3.27 years
Effective Duration 3.08 years

Average maturity and effective duration include bonds, cash and cash equivalents.

Portfolio Management
Manager Name Company Name Years in Industry Years with Fund
Matthew A. Hekman is Vice President of Ivy Investment Management Company and Waddell & Reed Investment Management Company. Mr. Hekman joined the firm in June 2003 as a performance analyst. He was promoted to investment analyst in March 2005. He joined the large-cap growth team in January 2009. He was appointed assistant vice president and assistant portfolio manager in January 2010. Mr. Hekman joined the large-cap value team as assistant portfolio manager in September 2011. His research responsibilities were concentrated in large-cap value stocks, aerospace and defense, and chemicals. In August 2014, Mr. Hekman was appointed portfolio manager of the Ivy Balanced Fund, Ivy Funds VIP Balanced and Waddell & Reed Advisors Continental Income Fund. Prior to joining the firm, Mr. Hekman was a manager of custody administration and investment accounting with State Street Corporation. He was responsible for five client relationships as well as eight staff members. He oversaw and approved all custody and accounting activities for 26 mutual funds culminating in the submission of a NAV to NASDAQ. In that role, Mr. Hekman acted as a liaison between custody administration, accounting, and investment management personnel. Mr. Hekman graduated from Dordt College in 1998 with a BA in business administration. He earned an MBA with an emphasis in finance from the University of Kansas in 2003. Mr. Hekman is a member of the CFA Institute and the Kansas City CFA Society.Matthew A. Hekman Ivy Investment Management Company 16 <1

Risk Factors: As with any mutual fund, 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. 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.

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.

Index Description: S&P 500 - An unmanaged index of common stocks. It is not possible to invest directly in an index.

Index Description: Barclays US Govt/Credit TR USD - The Barclays U.S. Government/Credit Index measures the performance of U.S. dollar-denominated United States Treasuries, government-related, and investment-grade U.S. corporate securities that have a remaining maturity of greater than or equal to one year. In addition, the securities have $250 million or more of outstanding face value and are fixed-rate and non-convertible securities. It is not possible to invest directly in an index.

The Advantus Spectrum Fund merged into the Ivy Balanced Fund on Dec. 8, 2003. The performance shown for periods prior to this date is that of the Advantus Spectrum Fund Class A shares, restated to reflect current sales charges applicable to Ivy Balanced Fund Class A shares. Performance has not been restated to reflect the fees and expenses applicable to the Ivy Balanced Fund. If these expenses were reflected, performance shown would differ.

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.

Fee Waiver and/or Expense Reimbursement: Through July 31, 2015, to the extent that the total annual ordinary fund operating expenses of the Class Y shares exceeds the total annual ordinary fund operating expenses of the Class A shares, Ivy Funds Distributor, Inc. (IFDI), 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 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 by IFDI, WISC or the Board of Trustees.

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.

Morningstar Ratings: For each fund with at least a 3-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of all sales charges), placing emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund and rated separately.) A fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the share classes specified; other classes may have different performance characteristics.

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

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.

Please remember that an investment in a mutual fund involves risk. Investment return and principal value of a mutual fund investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

YTD Prices can be updated 3 to 4 hours after the Daily Pricing information which can result in mismatching data.

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