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Ivy Balanced Fund

  • $24.89 NAV as of 7/25/2017
  • ($0.14) / 0.57% Daily NAV Change
  • 7.21% YTD (NAV)

Summary

Balancing potential risk and reward in a complex world

Straightforward approach
A traditional balanced fund with predictable guardrails that generally invests two-thirds of its assets in U.S. equities and one-third of its assets in fixed-income securities.
Management discipline
Uses fundamental analysis and rigorous screening of stocks and bonds to determine portfolio composition.
Competitive track record
Seeks balanced, consistent growth and current income while managing risk. Manager utilizes a disciplined investment process that is designed to deliver consistent results.

Morningstar Style Box

Blend
Large
LTD
Low
Source: Morningstar

Portfolio Management

Matthew A. Hekman

  • Ivy Investment Management Company
  • 2 Years with Fund
  • 19 Years in Industry
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Matthew Hekman is co-portfolio manager of Ivy Balanced Fund,Ivy VIP Balanced and Waddell & Reed Advisors ContinentalIncome Fund. He was named portfolio manager of the funds in2014 and assumed co-portfolio manager responsibilities in 2017.Mr. Hekman joined Waddell & Reed in 2003 as a performanceanalyst. He joined the firm's Investment Management Division asan equity investment analyst in 2005. He was a member of theLarge Cap Growth team from 2009 to 2011, named assistantportfolio manager in 2010. He was assistant portfolio manager onthe Large Cap Value team from 2011 to 2014. He was appointedassistant vice president in 2010 and vice president in 2014.Prior to joining Waddell & Reed, Mr. Hekman was a manager ofcustody administration and investment accounting with StateStreet Corporation. He was responsible for five client relationshipsas well as eight staff members. He oversaw and approved allcustody and accounting activities for 26 mutual funds culminatingin the submission of a NAV to NASDAQ. In that role, Mr. Hekmanacted as a liaison between custody administration, accounting,and investment management personnel.Mr. Hekman graduated from Dordt College in 1998 with a BA inBusiness Administration. He earned an MBA with an emphasis inFinance from the University of Kansas in 2003.Mr. Hekman is a member of the CFA Society of Kansas City.

Growth of a $10,000 Investment
through 6/30/2017

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 7/25/2017

Net Asset Value (NAV) $24.89
Daily NAV Change ($) ($0.14) 0.57%
Weekly NAV Change ($) $0.17 0.69%
Public Offering Price (POP) $24.89

Fund Facts

Ticker Symbol IYBIX
CUSIP 465898146
Fund Code 483
Fund Type Specialty Funds
Fund Inception 11/16/1987
Class Inception 4/2/2007
Fiscal Year End March
Dividends Paid March, June, September, December
Fund Assets (as of 6/30/2017) $2.1 bil
Total Equity Holdings (as of 6/30/2017) 59
Total Holdings (as of 6/30/2017) 200
Portfolio Turnover Rate (as of 3/31/2017) 47%
Lipper Category Mixed-Asset Target Alloc Growth Funds
Morningstar Category Allocation--50% to 70% Equity
Benchmark S&P 500 TR USD
Benchmark Bloomberg Barclays US Govt/Credit TR USD

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.

Class I shares are sold without any front-end sales load or contingent deferred sales charges.

Monthly Rates of Return

Average Annual Total Returns as of 6/30/2017
(Returns for periods of less than 1-yr are not annualized)
 
Bloomberg Barclays US Govt/Credit TR USD 2.66% -0.41% 2.62% 2.29% 4.57% 4.41%
Fund at NAV 6.05% 8.52% 3.35% 8.53% 6.79% 7.12%
Lipper Mixed-Asset Target Alloc Growth Funds 7.42% 12.31% 4.49% 8.92% 4.75% 5.07%
S&P 500 TR USD 9.34% 17.90% 9.61% 14.63% 7.18% 7.64%

Quarterly Rates of Return

Average Annual Total Returns as of 6/30/2017
(Returns for periods of less than 1-yr are not annualized)
 
Bloomberg Barclays US Govt/Credit TR USD 2.66% -0.41% 2.62% 2.29% 4.57% 4.41%
Fund at NAV 6.05% 8.52% 3.35% 8.53% 6.79% 7.12%
Lipper Mixed-Asset Target Alloc Growth Funds 7.42% 12.31% 4.49% 8.92% 4.75% 5.07%
S&P 500 TR USD 9.34% 17.90% 9.61% 14.63% 7.18% 7.64%

Calendar Year Return

  2012
Bloomberg Barclays US Govt/Credit TR USD 4.82 -2.35 6.01 0.15 3.05
Class I 11.78 23.60 7.52 -0.11 2.23
S&P 500 TR USD 16.00 32.39 13.69 1.38 11.96

Morningstar Ratings as of 6/30/2017 Morningstar Logo

Category: Allocation--50% to 70% Equity
Ratings are based on risk-adjusted returns
Overall out of 727
3 Year out of 727
5 Year out of 653
10 Year out of 429

Lipper Ranking through 6/30/2017 Lipper Logo

Category: Mixed-Asset Target Alloc Growth Funds
 
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 467/516 91
3 Year 373/461 81
5 Year 278/428 65
10 Year 13/320 5

Expense Ratios as of 7/5/2017

Net 0.85%
Gross 0.85%

5-Year Standard Deviation as of 6/30/2017

S&P 500 TR USD 9.56
Bloomberg Barclays US Govt/Credit TR USD N/A

5-Year MPT* Statistics as of 6/30/2017

*Modern Portfolio Theory
Alpha -2.26
Beta 0.76
R-Squared 88.75
Sharpe Ratio 1.09
Capture Ratio Upside: 70.67%
Downside: 91.39%

Distributions

Historical Prices Inception 4/2/2007

7/3/2017 $24.66 NO NO
7/5/2017 $24.64 NO NO
7/6/2017 $24.46 NO NO
7/7/2017 $24.51 NO NO
7/10/2017 $24.52 NO NO
7/11/2017 $24.53 NO NO
7/12/2017 $24.66 NO NO
7/13/2017 $24.72 NO NO
7/14/2017 $24.76 NO NO
7/17/2017 $24.76 NO NO
7/18/2017 $24.72 NO NO
7/19/2017 $24.82 NO NO
7/20/2017 $24.75 NO NO
7/21/2017 $24.75 NO NO
7/24/2017 $24.75 NO NO
7/25/2017 $24.89 NO NO

Historical Distributions Inception 4/2/2007

6/15/2017 $0.14 Long: $0.000 Short: $0.000 $24.52 6/15/2017
12/8/2016 $0.188 Long: $0.277 Short: $0.000 $23.51 12/8/2016
9/15/2016 $0.063 Long: $0.000 Short: $0.000 $23.84 9/15/2016
6/16/2016 $0.055 Long: $0.000 Short: $0.000 $23.22 6/16/2016
12/10/2015 $0.189 Long: $0.938 Short: $0.239 $23.61 12/10/2015
9/10/2015 $0.071 Long: $0.000 Short: $0.000 $24.25 9/10/2015
6/11/2015 $0.049 Long: $0.000 Short: $0.000 $25.8 6/11/2015
3/12/2015 $0.035 Long: $0.000 Short: $0.000 $25.63 3/12/2015
12/11/2014 $0.1153 Long: $0.649 Short: $0.088 $24.64 12/11/2014
9/11/2014 $0.05 Long: $0.000 Short: $0.000 $25.3 9/11/2014
6/12/2014 $0.028 Long: $0.000 Short: $0.000 $25.05 6/12/2014
3/13/2014 $0.029 Long: $0.000 Short: $0.000 $24.11 3/13/2014
12/12/2013 $0.0744 Long: $0.399 Short: $0.126 $23.38 12/12/2013
9/12/2013 $0.029 Long: $0.000 Short: $0.000 $23.05 9/12/2013
6/13/2013 $0.029 Long: $0.000 Short: $0.000 $22.19 6/13/2013
3/14/2013 $0.022 Long: $0.000 Short: $0.000 $21.56 3/14/2013

*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 6/30/2017

NAV 1.78%
With Sales Charge 1.78%

Annualized 30-Day SEC Yield as of 6/30/2017

Subsidized - NAV 1.34%
Unsubsidized - NAV 1.34%

Portfolio

Top 10 Equity Holdings as a % of net assets 6/30/2017

Apple, Inc. 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. 2.38%
JPMorgan Chase & Co. JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. 2.30%
Carnival Corp. Carnival Corporation operates as a cruise and vacation company. 2.25%
Comcast Corp., Class A Comcast Corporation operates as a media and technology company worldwide. It operates through cable communications, cable networks, broadcast television, filmed entertainment, and theme parks segments. 2.03%
Autodesk, Inc. Autodesk, Inc. supplies PC software and multimedia tools. The company's two-dimensional and three-dimensional products are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications. Autodesk's software products are sold worldwide through a network of dealers and distributors. 1.99%
PNC Financial Services Group, Inc. (The) 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. 1.92%
Intercontinental Exchange, Inc. Intercontinental Exchange, Inc. operates regulated exchanges, clearing houses, and listings venues for financial and commodity markets in the U.S., U.K., Continental Europe, Asia, Israel and Canada 1.86%
Shire Pharmaceuticals Group plc ADR Shire plc (Shire) is a specialty biopharmaceutical company that focuses on meeting the needs of the specialist physician. 1.83%
Johnson Controls, Inc. Johnson Controls International plc operates as a diversified technology and multi industrial company worldwide. 1.79%
Microsoft Corp. Microsoft Corporation is a multinational computer technology corporation that develops, manufactures, licenses and supports a wide range of software products for computing devices. 1.71%

Total Portfolio Holdings

Updated quarterly, upon availability.

Market Capitalization
as a % of equity assets as of 6/30/2017

Large 91.8%
Medium 8.2%
Small 0.0%
Median Market Cap (as of 6/30/2017) $44.4 bil

Top 10 Industry Allocation
as a % of Equity Holdings as of 6/30/2017

Pharmaceuticals 8.4%
Managed Health Care 5.0%
Biotechnology 4.2%
Other Diversified Financial Services 3.9%
Technology Hardware, Storage & Peripherals 3.4%
Hotels, Resorts & Cruise Lines 3.2%
Diversified Banks 3.1%
Regional Banks 3.0%
Integrated Oil & Gas 3.0%
Oil & Gas Exploration & Production 2.9%

Maturity
as a % of fixed income assets as of 6/30/2017

<1 Year 10.1%
1-5 Years 51.3%
5-10 Years 32.5%
10-20 Years 0.0%
>20 Years 6.2%
Average Maturity 5.27 years
Effective Duration 4.17 years

Fixed Income Country Allocation
as a % of bond holdings as of 6/30/2017

United States 79.4%
United Kingdom 7.1%
France 2.1%
Australia 2.1%
Netherlands 2.0%
Canada 1.7%
Japan 1.6%
Singapore 1.5%
Ireland 0.8%
Sweden 0.7%
Guernsey 0.7%
Hong Kong 0.4%

Sector Allocation
as a % of equity assets as of 6/30/2017

Health Care 19.47%
Financials 17.11%
Consumer Discretionary 16.35%
Information Technology 15.70%
Industrials 10.65%
Energy 9.40%
Consumer Staples 4.96%
Materials 4.86%
Real Estate 1.25%
Telecommunication Services 0.25%

Quality
as a % of fixed income assets as of 6/30/2017

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.
Government Bonds 16.40%
AA 3.50%
A 14.40%
BBB 42.60%
BB 15.60%
B 5.00%
CCC 2.50%

Portfolio Composition
as a % of net assets as of 6/30/2017

Domestic Common Stock 59.32%
Corporate Bonds 23.41%
Preferred Stock 7.07%
Foreign Common Stock 3.73%
Government Bonds 1.52%
Cash and Cash Equivalents 1.51%
Senior Loans 0.31%

Equity Country Allocation
as a % of equity assets as of 6/30/2017

United States 93.0%
Israel 2.9%
Ireland 2.6%
Belgium 1.5%

Total Portfolio Holdings

Updated quarterly, upon availability.

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. 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. 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. The lower-rated securities in which the Fund may invest may carry greater risk of nonpayment of interest or principal then higher-rated bonds. In addition to the risks typically associated with fixed-income securities, loan participations in which the Fund may invest carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loan participations may be unsecured or not fully collateralized may be subject to restrictions on resale and sometimes trade infrequently on the secondary market. The Fund’s emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform non-dividend paying stocks and the market as a whole over any period of time. In addition, there is no guarantee that the companies in which the Fund invests will declare dividends in the future or that dividends, if declared, will remain at current levels or increase over time. The amount of any dividend the company may pay may fluctuate significantly. In addition, the value of dividend-paying common stocks can decline when interest rates rise as fixed-income investments become more attractive to investors. This risk may be greater due to the current period of historically low interest rates. The Fund typically holds a limited number of stocks (generally 50 to 65). As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund’s net asset value than it would if the Fund invested in a large number of securities. The value of a security believed by the Fund’s manager to be undervalued may never reach what the manager believes to be its full value, or such security’s value may decrease. 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.

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

Index Description: Bloomberg 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.

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.

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.

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.

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.

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

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