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Ivy High Income Opportunities Fund

  • $16.26 NAV
  • $0.01 / 0.06% Daily NAV Change

Summary

A research-based investment process.

Management discipline
The Fund manager believes that security selection through research of individual issuers is central to achieving potentially above-market returns.
Research base
Although there may be periodic environments where macroeconomic events and strategic exposures influence allocations, investment decisions about specific securities are based on fundamental credit research, valuations, the potential to exploit market inefficiencies and capital structure positioning.
Flexibility
The Fund invests primarily in a portfolio of high-yield corporate bonds of varying maturities and other fixed income securities, including first- and second-lien loans.

Morningstar Style Box

Value
Small
LTD
Low
Source: Morningstar

Portfolio Management

Chad Gunther

  • Ivy Investment Management Company
  • 3 Years with Fund
  • 19 Years in Industry
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Chad Gunther is portfolio manager of Ivy, Ivy VIP and Waddell & Reed Advisors High Income Funds, and of Ivy High Income Opportunities Fund. He has been portfolio manager of the High Income funds and High Income Opportunities fund since 2014. Since the Ivy Apollo Funds inception in 2015, he has been portfolio manager of the High Income Strategy sleeve of Ivy Apollo Strategic Income Fund and Ivy Apollo Multi-Asset Income Fund. Mr. Gunther joined Waddell & Reed in 2003 as a high yield fixed income investment analyst. He was appointed assistant vice president in 2008. He was named assistant portfolio manager of Ivy, Ivy VIP and Waddell & Reed Advisors High Income Funds in 2008. He was appointed vice president in 2013 and senior vice president in 2014. Prior to joining Waddell & Reed, Mr. Gunther was affiliated with Dialpad Communications as director of business operations. His responsibilities included the customer care, risk management and billing departments. Before joining Dialpad, Mr. Gunther was an associate analyst in equity research for George K. Baum & Company. He spent five years with Piper Jaffray before earning his master's degree. Mr. Gunther graduated from the University of Kansas in 1993 with a BS in Business Administration with an emphasis in Economics. He earned an MBA with an emphasis in Finance from Washington University/St. Louis Olin Graduate School of Business in 2000.

Growth of a $10,000 Investment
through 9/30/2017

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

Perspectives

Quarterly Fund Commentary

Daily Prices as of 10/19/2017

Share Price $15.74
Net Asset Value (NAV) $16.26
Nav Change ($) $0.01
Nav Change (%) 0.06%
Share Price Change ($) $0.05
Share Price Change (%) 0.32%
Premium Discount (%) -3.20%
Premium Discount 52 Wk avg (%) -6.07%
Share Price - 52 Wk High (08/01/2017) $16.10
Share Price 52 Wk Low (11/14/2016) $12.99
NAV 52 Week High (08/02/2017) $16.54
NAV 52 Week High (11/14/2016) $15.23
Premium Discount 52 Wk High (09/26/2017) -1.72%
Premium Discount 52 Wk High (11/14/2016) -13.85%
Inception NAV $19.06
Inception Share Price $20.00
Shares Outstanding 16567088
Average Daily Volume (in shares) - 3 Month 56441

Leverage (as of 9/30/2017)

Total Regulatory Leverage 32.11%
Effective Leverage 32.11%
Asset Coverage 311.42%

Average Leverage Costs

1mo 1.98%
3mo 1.98%
1yr 1.69%

Fund Facts

Ticker Symbol IVH
CUSIP 465893105
Fund Code 991
Fund Type Closed End Funds
Fund Inception 5/29/2013
Class Inception 5/29/2013
Fiscal Year End September
Dividends Paid Monthly
Fund Assets (as of 9/30/2017) $270.6 mil
Total Equity Holdings (as of 9/30/2017) 3
Total Holdings (as of 9/30/2017) 275
Portfolio Turnover Rate (as of 3/31/2017) 15%
Morningstar Category High Yield Bond

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 9/30/2017
(Returns for periods of less than 1-yr are not annualized)
 
Fund at NAV 9.10% 15.14% 6.11% 7.36%
Fund at Market Price 15.94% 22.55% 9.35% 5.68%

Quarterly Rates of Return

Average Annual Total Returns as of 9/30/2017
(Returns for periods of less than 1-yr are not annualized)
 
Fund at NAV 9.10% 15.14% 6.11% 7.36%
Fund at Market Price 15.94% 22.55% 9.35% 5.68%

Expense Ratios as of 9/30/2017

  Common Shares Total Fund
Management Fee 1.45% 1.00%
Interest Expenses 0.77% 0.53%
Other Expenses 0.13% 0.09%
Total Expenses 2.35% 1.62%

Distributions

Historical Prices Inception 5/29/2013

10/2/2017 $16.34 NO NO
10/3/2017 $16.34 NO NO
10/4/2017 $16.35 NO NO
10/5/2017 $16.35 NO NO
10/6/2017 $16.35 NO NO
10/9/2017 $16.37 NO NO
10/10/2017 $16.37 NO NO
10/11/2017 $16.36 NO NO
10/12/2017 $16.35 NO NO
10/13/2017 $16.34 NO NO
10/16/2017 $16.23 YES YES
10/17/2017 $16.24 NO NO
10/18/2017 $16.25 NO NO
10/19/2017 $16.26 NO NO

Historical Distributions Inception 5/29/2013

10/16/2017 $0.12 Long: $0.000 Short: $0.000 10/16/2017
9/14/2017 $0.12 Long: $0.000 Short: $0.000 9/14/2017
8/15/2017 $0.12 Long: $0.000 Short: $0.000 8/31/2017
6/14/2017 $0.12 Long: $0.000 Short: $0.000 6/30/2017
5/12/2017 $0.12 Long: $0.000 Short: $0.000 5/31/2017
4/11/2017 $0.12 Long: $0.000 Short: $0.000 4/28/2017
3/15/2017 $0.12 Long: $0.000 Short: $0.000 3/31/2017
2/9/2017 $0.12 Long: $0.000 Short: $0.000 2/9/2017
1/12/2017 $0.12 Long: $0.000 Short: $0.000 1/31/2017
12/13/2016 $0.15 Long: $0.000 Short: $0.000 12/30/2016
11/10/2016 $0.125 Long: $0.000 Short: $0.000 11/30/2016
10/13/2016 $0.125 Long: $0.000 Short: $0.000 10/31/2016
9/14/2016 $0.125 Long: $0.000 Short: $0.000 9/30/2016
8/15/2016 $0.125 Long: $0.000 Short: $0.000 8/31/2016
7/13/2016 $0.125 Long: $0.000 Short: $0.000 7/29/2016
6/14/2016 $0.125 Long: $0.000 Short: $0.000 6/30/2016
5/12/2016 $0.125 Long: $0.000 Short: $0.000 5/31/2016
4/13/2016 $0.125 Long: $0.000 Short: $0.000 4/29/2016
2/10/2016 $0.125 Long: $0.000 Short: $0.000 2/29/2016
1/12/2016 $0.125 Long: $0.000 Short: $0.000 1/29/2016
12/14/2015 $0.227 Long: $0.000 Short: $0.000 12/31/2015
11/10/2015 $0.125 Long: $0.000 Short: $0.000 11/30/2015
10/14/2015 $0.125 Long: $0.000 Short: $0.000 10/30/2015
9/14/2015 $0.125 Long: $0.000 Short: $0.000 9/30/2015
7/15/2015 $0.125 Long: $0.000 Short: $0.000 7/31/2015
6/12/2015 $0.125 Long: $0.000 Short: $0.000 6/30/2015
5/12/2015 $0.125 Long: $0.000 Short: $0.000 5/29/2015
4/14/2015 $0.125 Long: $0.000 Short: $0.000 4/30/2015
3/13/2015 $0.125 Long: $0.000 Short: $0.000 3/31/2015
2/10/2015 $0.125 Long: $0.000 Short: $0.000 2/27/2015
1/13/2015 $0.125 Long: $0.000 Short: $0.000 1/30/2015
12/11/2014 $0.284 Long: $0.051 Short: $0.245 12/31/2014
11/7/2014 $0.125 Long: $0.000 Short: $0.000 11/26/2014
10/15/2014 $0.125 Long: $0.000 Short: $0.000 10/31/2014
9/12/2014 $0.125 Long: $0.000 Short: $0.000 9/30/2014
8/13/2014 $0.125 Long: $0.000 Short: $0.000 8/29/2014
7/15/2014 $0.125 Long: $0.000 Short: $0.000 7/31/2014
6/12/2014 $0.125 Long: $0.000 Short: $0.000 6/30/2014
5/13/2014 $0.125 Long: $0.000 Short: $0.000 5/30/2014
4/11/2014 $0.125 Long: $0.000 Short: $0.000 4/30/2014
3/13/2014 $0.125 Long: $0.000 Short: $0.000 3/31/2014
2/11/2014 $0.125 Long: $0.000 Short: $0.000 2/28/2014
1/14/2014 $0.125 Long: $0.000 Short: $0.000 1/31/2014
12/12/2013 $0.393 Long: $0.000 Short: $0.083 12/31/2013
11/12/2013 $0.125 Long: $0.000 Short: $0.000 11/29/2013
10/15/2013 $0.125 Long: $0.000 Short: $0.000 10/31/2013
9/12/2013 $0.125 Long: $0.000 Short: $0.000 9/30/2013
8/8/2013 $0.125 Long: $0.000 Short: $0.000 8/26/2013

*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.

12-Month Trailing Dist. Yield as of 9/30/2017

NAV 9.06%
With Sales Charge 9.27%

Annualized 30-Day SEC Yield as of 9/30/2017

Subsidized - Share Price 8.72%
Unsubsidized - Share Price 8.72%
Subsidized - NAV 8.52%
Unsubsidized - NAV 8.52%

Portfolio

Top 10 Holdings as a % of net assets 9/30/2017

Altice S.A., 7.8%, 5/15/2022 5.42%
Sprint Corp., 7.3%, 9/15/2021 4.60%
Altice S.A., 7.6%, 2/15/2025 4.46%
Clear Channel Worldwide Holdings, Inc., Series B, 7.6%, 3/15/2020 3.65%
Frontier Communications Corp., 6.3%, 9/15/2021 3.28%
DISH DBS Corp., 6.8%, 6/1/2021 3.05%
Laureate Education, Inc., 8.3%, 5/1/2025 2.73%
New Cotai LLC and New Cotai Capital Corp., 10.6%, 5/1/2019 2.43%
Jo-Ann Stores Holdings, Inc., 9.8%, 10/15/2019 2.03%
Laureate Education, Inc., 5.7%, 4/26/2024 2.01%

Total Portfolio Holdings

Updated quarterly, upon availability.

Fixed Income Country Allocation
as a % of bond holdings as of 9/30/2017

United States 78.7%
Luxembourg 8.6%
Canada 5.9%
Netherlands 2.2%
France 1.2%
Macau 1.1%
United Kingdom 0.9%
Cayman Islands 0.7%
Hong Kong 0.6%
Austria 0.1%
Australia 0.0%

Sector Allocation
as a % of equity assets as of 9/30/2017

Energy 70.32%
Consumer Staples 29.68%

Quality
as a % of fixed income assets as of 9/30/2017

Quality: 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.
NonRated 4.40%
BBB 1.00%
BB 11.70%
B 61.00%
CCC 21.50%
Below CCC 0.40%

Portfolio Composition
as a % of net assets as of 9/30/2017

Corporate Bonds 117.40%
Senior Loans 24.98%
Domestic Common Stock 1.07%
Cash and Cash Equivalents -43.45%

Total Portfolio Holdings

Updated quarterly, upon availability.

Documents

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Documents

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.

The investment return, price, yields, market value and net asset value (NAV) of a fund's shares will fluctuate with market conditions. Closed-end funds frequently trade at a discount to their NAV, which may increase an investor's risk of loss. At the time of sale, your shares may have a market price that is above or below NAV, and may be worth more or less than your original investment. There is no assurance that the Fund will meet its investment objective.

An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle.

Investors should carefully consider the Fund's investment objectives, risks, charges and expenses before investing. The prospectus, which contains this and other information about the Fund, should be read carefully before investing. A copy of the prospectus can be obtained by visiting the Fund’s webpage at www.ivyinvestment.com or by contacting your financial advisor.

Operating History: The Fund is a newly organized, non-diversified, closed-end management investment company with little operating history. As a result, prospective investors have no track record or history on which to base their investment decision. The Adviser currently acts as an investment adviser for managed accounts and numerous open-end registered investment companies. The Fund has little history of public trading.

Fixed Income Instruments Risk: Fixed income securities are subject to interest rate risk and, as such, the net asset value of the Fund may fall as interest rates rise. Fixed income instruments may face a number of risks related to interest rates, credit quality, the market environment, payment, prepayment and spreads.

Below Investment Grade Instruments Risk: The Fund will invest primarily in a portfolio of below investment grade securities, which are regarded as having predominately speculative characteristics with respect to an issuer's capacity to pay interest and repay principal and are commonly referred to as "high yield" securities or "junk" bonds. Investing in these securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds.

Loan Risks: The Fund may invest in loans (including loan assignments, loan participations and other loan instruments), which may carry other risks including the risk of insolvency of the lending bank or other intermediary. Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and may trade infrequently on the secondary market.

Leverage Risk: The Fund's use of leverage may result in special risks and can magnify the effects of any losses. While leverage may result in a higher yield for the Funds, the use of leverage includes the potential for higher volatility of the NAV, fluctuations of dividends and other distributions paid by the Fund, the market price of the Fund's common stocks, higher investment advisory fees and increased operation costs, which may reduce total return.

Derivatives Risk: The Fund may enter into transactions in derivatives for investment, hedging or leverage purposes, with primary risks including the risk of loss of principal, high volatility, illiquid markets, counterparty risk, and credit risk.

Foreign Instruments Risk: The Fund may invest up to 100% of its Managed Assets in fixed income instruments and securities issued by foreign issuers. Such investments involve certain risks not involved in domestic investments and may experience more rapid and extremechanges in value than investments in securities of U.S. companies or in the U.S. government.

Market Discount Risk: Closed-end funds are not redeemable and generally trade in the secondary market. Shares of closed-end funds frequently trade at a discount to their net asset value, which creates risk of loss. This risk is greater for investors expecting to sell their sharesin a relatively short period after completion of the public offering.

The Fund is a closed-end exchange traded investment company. The material on this website is presented only to provide information and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. After the initial public offering, shares of closed-end funds are sold on the open market through a stock exchange. Investment policies, management fees, risks other than those mentioned above, and other matters of interest to prospective investors may be found in the closed-end fund prospectus used in its initial public offering. For additional information, contact the Ivy Funds Sales Desk at 866-263-1985.

Ivy Investment Management Company serves as the Fund's investment adviser. The Adviser is a wholly-owned subsidiary of Waddell & Reed Financial, Inc., a publicly held company.

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.

Investment return, price, yields and NAV will fluctuate with changes in market conditions. At the time of sale, your shares may have a market price that is above or below net asset value, and may be worth more or less than your original investment. There is no assurance that a fund will meet its investment objective.

1. Regulatory Leverage consists of borrowings, preferred shares, debt securities or other commercial paper, and Effective Leverage, divided by Managed Assets.

2. Effective Leverage consists of Regulatory Leverage, derivatives instruments including total return swaps, securities lending arrangements and credit default swaps or other derivative transactions divided by Managed Assets.

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.

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.

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.

Quality: 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.

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

Chad A. Gunther of Ivy Investment Management Company was named portfolio manager of the Fund on July 9, 2014. From November 21, 2013 through July 8, 2014 the Fund was managed by William M. Nelson. From inception through November 20, 2013, the Fund was managed by Bryan C. Krug.

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

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