- Over the past several quarters our outlook on equities has been cautious. We felt that there was downside risk to earnings and growth in many areas, and that the overall valuation environment was not aligned with this view. We are certainly not bullish at this point – however, we are becoming more neutral to cautious optimistic.
- Earnings expectations are looking far more achievable and realistic in most sectors, and valuations are now less demanding than they have been in a while. We still think there is some value trap risk in some areas as earnings expectations and valuations may not have fully reset, but we are finding more names that are beginning to look attractive from a fundamental and valuation point of view.
- We wouldn’t argue that equities overall are highly attractive, but believe some more intriguing individual stock opportunities are developing.
*Top 10 Holdings (%) as of 09/30/2015: Pfizer, Inc. 3.9, Teva Pharmaceutical Industries Ltd. 3.7, Citigroup, Inc. 3.7, JPMorgan Chase & Co. 3.6, Microsoft Corp. 3.6, McDonald's Corp. 3.3, Medtronic Inc. 3.3, Bristol-Myers Squibb Co. 2.9, Union Pacific Corp. 2.8 and Applied Materials Inc. 2.8.
The opinions expressed in this commentary are those of the Fund’s manager and are current through Sept. 30, 2015. The manager’s views are subject to change at any time based on market and other conditions, and no forecasts can be guaranteed. Past performance is no guarantee of future results.
The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is not possible to invest directly in an index.
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. Dividend-paying investments may not experience the same price appreciation as non-dividend paying instruments. 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.
Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus, or if available a summary prospectus, containing this and other information for the Ivy Funds, call your f nancial advisor or visit us online at www.ivyfunds.com. Please read the prospectus or summary prospectus carefully i before investing.