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Ivy Pictet Emerging Markets Local Currency Debt Fund

  • $9.30 NAV as of 6/27/2017
  • ($0.00) / 0.00% Daily NAV Change
  • 6.90% YTD (NAV)

Summary

Pursuing opportunities in emerging market debt

Select economies
Emerging market local currency issuers are about one-quarter of the world’s emerging economies.
Total return objective
Seeks to provide total return through a combination of current income and capital appreciation.
Experienced management
Subadvised by Pictet Asset Management, the investment management arm of Pictet & Cie, which launched its first emerging markets strategy in 1998.

Morningstar Style Box

MOD
Low
Source: Morningstar

Portfolio Management

Simon Lue-Fong

  • Pictet Asset Management (Sub-adviser)
  • 3 Years with Fund
  • 26 Years in Industry
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Simon Lue-Fong joined Pictet Asset Management in 2005 as a senior investment manager and Head of the Emerging Debt Fixed Income team with responsibility for investment management, product development and client relations. He has been an investment manager since 1991. His first role was managing global bonds and currencies. In 1996, he set up an emerging markets debt business in external debt and local currency at Fischer Francis Trees & Watts. Before joining Pictet he worked for Standard Asset Management and INVESCO in their respective emerging markets debt teams. Simon graduated from Bournemouth University with a B.A. (Hons) degree in Finance.

Growth of a $10,000 Investment
through 5/31/2017

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 6/27/2017

Net Asset Value (NAV) $9.30
Daily NAV Change ($) ($0.00) 0.00%
Weekly NAV Change ($) $0.07 0.76%
Public Offering Price (POP) $9.87

Fund Facts

Ticker Symbol IECAX
CUSIP 465899227
Fund Code 631
Fund Type Fixed Income Funds
Fund Inception 4/30/2014
Class Inception 4/30/2014
Fiscal Year End September
Dividends Paid March, June, September, December
Fund Assets (as of 5/31/2017) $120.5 mil
Total Holdings (as of 5/31/2017) 115
Portfolio Turnover Rate (as of 3/31/2017) 32%
Lipper Category Emerging Markets Local Currency Debt Fds
Morningstar Category Emerging-Markets Local-Currency Bond
Benchmark JPM GBI EM Global Diversified 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.

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 5/31/2017
(Returns for periods of less than 1-yr are not annualized)
 
Fund with 5.75% sales charge 0.43% 1.20% -4.35% -3.74%
Fund at NAV 6.55% 7.42% -2.44% -1.87%
Lipper Emerging Markets Local Currency Debt Fds 9.04% 11.16% -2.92% 0.08% 3.23% -2.18%
JPM GBI EM Global Diversified TR USD 9.86% 12.17% -2.63% 0.32% 3.91% -1.82%

Quarterly Rates of Return

Average Annual Total Returns as of 3/31/2017
(Returns for periods of less than 1-yr are not annualized)
 
Fund with 5.75% sales charge -1.73% -2.58% -4.67%
Fund at NAV 4.25% 3.42% -2.71%
Lipper Emerging Markets Local Currency Debt Fds 6.44% 6.13% -2.72% -1.70% 3.53% -3.12%
JPM GBI EM Global Diversified TR USD 6.50% 5.47% -2.68% -1.62% 4.10% -2.96%

Calendar Year Return

  2012
Class A -11.32 7.81
JPM GBI EM Global Diversified TR USD -8.98 -5.72 -14.92 9.94

Morningstar Ratings as of 5/31/2017 Morningstar Logo

Category: Emerging-Markets Local-Currency Bond
Ratings are based on risk-adjusted returns
Overall out of 81
3 Year out of 81
5 Year out of —
10 Year out of —

Lipper Ranking through 5/31/2017 Lipper Logo

Category: Emerging Markets Local Currency Debt Fds
 
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 86/94 91
3 Year 25/80 31
5 Year
10 Year

Expense Ratios as of 5/18/2017

Net 1.25%
Gross 1.88%

5-Year Standard Deviation as of

JPM GBI EM Global Diversified TR USD 11.30

Distributions

Historical Prices Inception 4/30/2014

6/1/2017 $9.28 NO NO
6/2/2017 $9.31 NO NO
6/5/2017 $9.33 NO NO
6/6/2017 $9.34 NO NO
6/7/2017 $9.31 NO NO
6/8/2017 $9.32 NO NO
6/9/2017 $9.33 NO NO
6/12/2017 $9.34 NO NO
6/13/2017 $9.35 NO NO
6/14/2017 $9.37 NO NO
6/15/2017 $9.30 NO NO
6/16/2017 $9.33 NO NO
6/19/2017 $9.29 NO NO
6/20/2017 $9.23 NO NO
6/21/2017 $9.21 NO NO
6/22/2017 $9.25 NO NO
6/23/2017 $9.28 NO NO
6/26/2017 $9.30 NO NO
6/27/2017 $9.30 NO NO

Historical Distributions Inception 4/30/2014

12/11/2014 $0.159 Long: $0.003 Short: $0.000 $9.19 12/11/2014

*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 5/31/2017

NAV 0.00%
With Sales Charge 0.00%

Annualized 30-Day SEC Yield as of 5/31/2017

Subsidized - NAV 3.95%
Unsubsidized - NAV 3.14%

Portfolio

Top 10 Holdings as a % of net assets 5/31/2017

Sysco Corp., 1.1%, 6/1/2017 3.90%
Russia Government Bond, 7.1%, 1/19/2028 3.48%
Republic of South Africa, 8.8%, 2/28/2048 3.20%
Thailand Government Bond, 2.1%, 12/17/2026 3.02%
Chile Bonos Tesoreria, 3/1/2026 2.94%
Republic of Philippines, 6.3%, 1/14/2036 2.76%
Indonesia Government Bond, 8.4%, 3/15/2034 2.69%
Republic of Chile, 5.5%, 8/5/2020 2.57%
Republic of Argentina, 10/3/2021 2.37%
Republic of Argentina, 10/17/2026 2.35%

Total Portfolio Holdings

Updated quarterly, upon availability.

Maturity
as a % of fixed income assets as of 5/31/2017

<1 Year 21.9%
1-5 Years 17.2%
5-10 Years 31.5%
10-20 Years 20.1%
>20 Years 9.3%
Average Maturity 8.23 years
Effective Duration 5.18 years

Fixed Income Country Allocation
as a % of bond holdings as of 5/31/2017

Chile 8.4%
Argentina 7.2%
Mexico 7.0%
Thailand 6.8%
Turkey 6.4%
Brazil 6.3%
Philippines 5.7%
Malaysia 5.7%
Hungary 5.7%
South Africa 5.6%
Romania 5.4%
Czech Republic 5.2%
Indonesia 5.0%
Columbia 5.0%
Poland 4.9%
Peru 4.9%
Russia 4.8%
South Korea 0.1%

Quality
as a % of fixed income assets as of 5/31/2017

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 24.00%
AA 3.30%
A 22.90%
BBB 36.30%
BB 6.30%
B 7.20%

Portfolio Composition
as a % of net assets as of 5/31/2017

Other Government Securities 79.61%
Cash and Cash Equivalents 20.39%
Other Financial Instruments 0.00%

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 a fund’s shares will change, and you could lose money on your investment. An investment in a fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. International investing involves additional risks, including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. 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, especially securities with longer maturities. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. The Fund may seek to manage exposure to various foreign currencies, which may involve additional risks. The value of securities, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates or exchange control regulations. Investing in foreign securities involves a number of risks that may not be associated with the U.S. markets and that could affect the Fund’s performance unfavorably, such as greater price volatility; comparatively weak supervision and regulation of securities exchanges, fluctuation in foreign currency exchange rates and related conversion costs, adverse foreign tax consequences, or different and/or less stringent financial reporting standards. Sovereign debt instruments are also subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or principal due to cash flow problems, insufficient foreign currency reserves or political concerns. Risks of credit-linked notes include those risks associated with the underlying reference obligation, including but not limited to market risk, interest rate risk, credit risk, default risk and foreign currency risk. The buyer of a credit-linked note assumes the risk of default by the issuer and the underlying reference asset or entity. If the underlying investment defaults, the payments and principal received by the Fund will be reduced or eliminated. Also, in the event the issuer defaults or there is a credit event that relates to the reference asset, the recovery rate generally is less than the Fund’s initial investment, and the Fund may lose money. The use of derivatives presents several risks including the risk that fluctuation in the values of the derivatives may not correlate perfectly with the overall securities markets or with the underlying asset from which the derivative’s value is derived. Moreover, some derivatives are more sensitive to interest rate changes and market fluctuations than others, and the risk of loss may be greater than if the derivative technique(s) had not been used. Derivatives also may be subject to counterparty risk, which includes the risk that a loss may be sustained by the Fund as a result of the insolvency or bankruptcy of, or other non-compliance by, another party to the transaction. 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: The JP Morgan GBI-EM Global Diversified tracks the performance of emerging market debt. It is not possible to invest directly in an index.

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.

Management Fees have been restated, effective May 18, 2017.

Fee Waiver and/or Expense Reimbursement: Through January 31, 2019, Ivy Investment Management Company (IICO), the Fund’s investment manager, Ivy Distributors, Inc. (IDI), 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 management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any) for the Fund’s Class A shares and Class Y shares at 1.25%; Class C shares at 2.00%; Class E shares at 1.40%; Class I shares and Class N shares at 0.80%; and Class R shares at 1.50%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees of Ivy Funds (Board). Certain common expenses applicable to all share classes also may be waived to cap total annual ordinary fund operating expenses, which may serve to reduce the expense ratio of certain share classes below its respective expense cap.

Fee Waiver and/or Expense Reimbursement: Through January 31, 2018, IDI and/or WISC 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 IDI, WISC or the Board.

The Ivy Emerging Markets Local Currency Debt Fund was renamed Ivy Pictet Emerging Markets Local Currency Debt Fund on April 3, 2017.

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.

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.

The Fund is subadvised by Pictet Asset Management Limited (Pictet UK). Pictet UK delegates to its affiliate, Pictet Asset Management (Singapore) PTE Ltd (Pictet Singapore, and collectively with Pictet UK, Pictet), portfolio management responsibilities for Fund assets allocated to Asian investments. References to Pictet Asset Management include both entities.

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

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