Class A shares of most of the Waddell & Reed Advisors Funds and Ivy Funds have an initial sales charge that an investor pays at the time of investment. There are a number of options for reducing the sales charge for Class A investments.
The Waddell & Reed Advisors Funds and Ivy Funds offer "breakpoints" for Class A shares for which reduced sales charges may apply. The applicable sales charge is based upon the market value of the assets in the account plus the amount of the current investment.
Grouping allows separate accounts of Class A shares (except Waddell & Reed Advisors Cash Management and Ivy Money Market Fund shares) to be linked together for the purpose of determining the applicable sales charge rate. Shareholders who are members of the same household (husband, wife and minor children) can direct us to place their accounts under the same group number. Whenever an investment is made in Class A shares, the total market value of Class A shares (except Waddell & Reed Advisors Cash Management and Ivy Money Market Fund shares) in all accounts under the group number will be used to determine the sales charge according to the breakpoint tables set forth in the prospectus for each fund.
Letter of Intent (LOI)
Under a Letter of Intent, or LOI, you may make a series of investments that will be considered as one investment for the purpose of determining whether you’re entitled to a reduced sales charge on purchases of Class A shares. The Letter of Intent refers to the written intent to make a series of investments within a 13-month period.
NOTE: Class B and C shares have no initial sales charge. For Class B shares, an investor generally pays a contingent deferred sales charge (CDSC) on shares redeemed within the time period specified in each fund's prospectus. Class C shares carry a level- load sales charge and impose a CDSC on shares redeemed within the first twelve months after purchase.