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Ivy Limited-Term Bond Fund

  • $10.83 NAV as of 10/20/2017
  • ($-0.01) / -0.09% Daily NAV Change
  • 1.08% YTD (NAV)

Summary

Managing interest rate risk with income potential

Duration
Duration measures the sensitivity of a fixed income investment to interest rate changes. Fund invests in short-term bonds, which have low duration and less rate sensitivity and longer-duration securities.
Discipline
Invests primarily in high-quality securities that have historically had less price volatility than longer-term and noninvestment grade bonds.
Diversification
Bond funds can offer income and diversification to an all-equity portfolio.

Morningstar Style Box

LTD
Medium
Source: Morningstar

Portfolio Management

Susan K. Regan

  • Ivy Investment Management Company
  • 3 Years with Fund
  • 30 Years in Industry
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Susan Regan is portfolio manager of Ivy and Ivy VIP Limited-Term Bond Funds and fixed income institutional accounts. She was named co-portfolio manager of the funds in 2014. She has held sole portfolio manager responsibilities for the funds since 2015. Ms. Regan joined Waddell & Reed in 2007 as a fixed income investment analyst and trader. She was appointed assistant vice president and named an assistant portfolio manager in 2010. Ms. Regan was co-portfolio manager of Ivy VIP Bond, Waddell & Reed Advisors Bond Fund and Waddell & Reed Advisors Government Securities Fund from 2014 through April 2015. She was interim portfolio manager of the three funds from May through September 2015. She was appointed vice president in 2014 and senior vice president in 2017. Prior to joining Waddell & Reed, Ms. Regan was employed by Commerce Bank from 1988 to 2007, where she gained experience-trading governments, agencies and mortgage-backed securities. As a vice president and trading manager she was responsible for supervising and mentoring eight traders, representing the trading desk to management and monitoring inventory positions for risk and compliance, in addition to her agency trading responsibilities. From 1987 through 1988 she was associated with the Missouri State Treasurer's Office and from 1986 to 1987 the Missouri Department of Revenue. Ms. Regan earned a BA in Economics in 1984 and an MA in Economics in 1985 from the University of Missouri-Columbia.

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 10/20/2017

Net Asset Value (NAV) $10.83
Daily NAV Change ($) ($-0.01) -0.09%
Weekly NAV Change ($) $-0.02 -0.18%
Public Offering Price (POP) $10.83

Fund Facts

Ticker Symbol WLTBX
CUSIP 466000874
Fund Code 503
Fund Type Fixed Income Funds
Fund Inception 9/21/1992
Class Inception 7/3/2000
Fiscal Year End March
Dividends Paid Daily, Paid Monthly
Fund Assets (as of 9/30/2017) $1.4 bil
Total Equity Holdings (as of 9/30/2017) 3
Total Holdings (as of 9/30/2017) 212
Portfolio Turnover Rate (as of 3/31/2017) 65%
Lipper Category Short-Intmdt Investment Grade Debt Funds
Morningstar Category Short-Term Bond
Benchmark BBgBarc US Govt/Credit 1-5 Yr 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 B shares, including sales charge, reflects the applicable contingent deferred sales charge (CDSC), which declines from 5% at the time of purchase to zero at the beginning of the seventh year.

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 with maximum 5.00% CDSC -3.88% -4.31% -0.40% -0.15% 2.21% 3.04%
Fund at NAV 1.12% -0.35% 0.59% 0.04% 2.21% 3.04%
BBgBarc US Govt/Credit 1-5 Yr TR USD 1.58% 0.51% 1.51% 1.20% 2.75% 3.80%
Lipper Short-Intmdt Investment Grade Debt Funds 1.95% 0.95% 1.56% 1.29% 3.11% 3.96%

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 with maximum 5.00% CDSC -3.88% -4.31% -0.40% -0.15% 2.21% 3.04%
Fund at NAV 1.12% -0.35% 0.59% 0.04% 2.21% 3.04%
BBgBarc US Govt/Credit 1-5 Yr TR USD 1.58% 0.51% 1.51% 1.20% 2.75% 3.80%
Lipper Short-Intmdt Investment Grade Debt Funds 1.95% 0.95% 1.56% 1.29% 3.11% 3.96%

Calendar Year Return

  2012
Class B 1.84 -1.59 0.01 -0.39 1.16
BBgBarc US Govt/Credit 1-5 Yr TR USD 2.24 0.28 1.42 0.97 1.56

Morningstar Ratings as of 9/30/2017 Morningstar Logo

Category: Short-Term Bond
Ratings are based on risk-adjusted returns
Overall out of 463
3 Year out of 463
5 Year out of 382
10 Year out of 259

Lipper Ranking through 9/30/2017 Lipper Logo

Category: Short-Intmdt Investment Grade Debt Funds
 
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 163/176 93
3 Year 149/160 93
5 Year 128/132 97
10 Year 75/82 91

Expense Ratios as of 7/5/2017

Net 1.74%
Gross 1.74%

5-Year Standard Deviation as of 9/30/2017

BBgBarc US Govt/Credit 1-5 Yr TR USD 1.24

5-Year MPT* Statistics as of 9/30/2017

*Modern Portfolio Theory
Alpha -1.35
Beta 1.20
R-Squared 83.81
Sharpe Ratio -0.09
Capture Ratio Upside: 87.24%
Downside: 172.31%

Distributions

Historical Prices Inception 7/3/2000

10/2/2017 $10.84 NO NO
10/3/2017 $10.84 NO NO
10/4/2017 $10.85 NO NO
10/5/2017 $10.84 NO NO
10/6/2017 $10.84 NO NO
10/9/2017 $10.84 NO NO
10/10/2017 $10.84 NO NO
10/11/2017 $10.84 NO NO
10/12/2017 $10.84 NO NO
10/13/2017 $10.85 NO NO
10/16/2017 $10.84 NO NO
10/17/2017 $10.84 NO NO
10/18/2017 $10.83 NO NO
10/19/2017 $10.84 NO NO
10/20/2017 $10.83 NO NO

Historical Distributions Inception 7/3/2000

9/27/2017 $0.0076 Long: $0.000 Short: $0.000 $10.84 9/27/2017
8/25/2017 $0.007 Long: $0.000 Short: $0.000 $10.87 8/25/2017
7/27/2017 $0.0075 Long: $0.000 Short: $0.000 $10.85 7/27/2017
6/27/2017 $0.0066 Long: $0.000 Short: $0.000 $10.84 6/27/2017
5/26/2017 $0.0076 Long: $0.000 Short: $0.000 $10.85 5/26/2017
4/27/2017 $0.007 Long: $0.000 Short: $0.000 $10.83 4/27/2017
3/27/2017 $0.0058 Long: $0.000 Short: $0.000 $10.8 3/27/2017
2/27/2017 $0.0061 Long: $0.000 Short: $0.000 $10.81 2/27/2017
1/27/2017 $0.0051 Long: $0.000 Short: $0.000 $10.78 1/27/2017
12/30/2016 $0.0069 Long: $0.000 Short: $0.000 $10.78 12/30/2016
11/25/2016 $0.0062 Long: $0.000 Short: $0.000 $10.78 11/25/2016
10/27/2016 $0.0072 Long: $0.000 Short: $0.000 $10.91 10/27/2016
9/27/2016 $0.0066 Long: $0.000 Short: $0.000 $10.97 9/27/2016
8/26/2016 $0.0075 Long: $0.000 Short: $0.000 $10.95 8/26/2016
7/27/2016 $0.007 Long: $0.000 Short: $0.000 $10.97 7/27/2016
6/27/2016 $0.006 Long: $0.000 Short: $0.000 $10.96 6/27/2016
5/27/2016 $0.0089 Long: $0.000 Short: $0.000 $10.86 5/27/2016
4/27/2016 $0.0101 Long: $0.000 Short: $0.000 $10.88 4/27/2016
3/24/2016 $0.0078 Long: $0.000 Short: $0.000 $10.82 3/24/2016
2/26/2016 $0.0064 Long: $0.000 Short: $0.000 $10.79 2/26/2016
1/27/2016 $0.0046 Long: $0.000 Short: $0.000 $10.78 1/27/2016
12/31/2015 $0.0071 Long: $0.000 Short: $0.000 $10.74 12/31/2015
11/27/2015 $0.005 Long: $0.000 Short: $0.000 $10.79 11/27/2015
10/27/2015 $0.0024 Long: $0.000 Short: $0.000 $10.86 10/27/2015
9/25/2015 $0.0041 Long: $0.000 Short: $0.000 $10.81 9/25/2015
8/27/2015 $0.0031 Long: $0.000 Short: $0.000 $10.81 8/27/2015
7/27/2015 $0.0034 Long: $0.000 Short: $0.000 $10.83 7/27/2015
6/26/2015 $0.0069 Long: $0.000 Short: $0.000 $10.81 6/26/2015
5/27/2015 $0.0067 Long: $0.000 Short: $0.000 $10.89 5/27/2015
4/27/2015 $0.0048 Long: $0.000 Short: $0.000 $10.94 4/27/2015
3/27/2015 $0.0046 Long: $0.000 Short: $0.000 $10.91 3/27/2015
2/27/2015 $0.0059 Long: $0.000 Short: $0.000 $10.91 2/27/2015
1/27/2015 $0.0049 Long: $0.000 Short: $0.000 $10.92 1/27/2015
12/31/2014 $0.0081 Long: $0.000 Short: $0.000 $10.84 12/31/2014
11/26/2014 $0.0054 Long: $0.000 Short: $0.000 $10.88 11/26/2014
10/27/2014 $0.0043 Long: $0.000 Short: $0.000 $10.9 10/27/2014
9/26/2014 $0.0044 Long: $0.000 Short: $0.000 $10.88 9/26/2014
8/27/2014 $0.0044 Long: $0.000 Short: $0.000 $10.93 8/27/2014
7/25/2014 $0.0042 Long: $0.000 Short: $0.000 $10.93 7/25/2014
6/27/2014 $0.0051 Long: $0.000 Short: $0.000 $10.95 6/27/2014
5/27/2014 $0.0046 Long: $0.000 Short: $0.000 $10.96 5/27/2014
4/25/2014 $0.0065 Long: $0.000 Short: $0.000 $10.92 4/25/2014
3/27/2014 $0.0054 Long: $0.000 Short: $0.000 $10.9 3/27/2014
2/27/2014 $0.0052 Long: $0.000 Short: $0.000 $10.95 2/27/2014
1/27/2014 $0.0035 Long: $0.000 Short: $0.000 $10.92 1/27/2014
12/31/2013 $0.0048 Long: $0.000 Short: $0.000 $10.9 12/31/2013
12/12/2013 $0 Long: $0.064 Short: $0.000 $10.92 12/12/2013
11/27/2013 $0.0087 Long: $0.000 Short: $0.000 $11.01 11/27/2013
10/25/2013 $0.0035 Long: $0.000 Short: $0.000 $11 10/25/2013
9/27/2013 $0.0027 Long: $0.000 Short: $0.000 $10.95 9/27/2013
8/27/2013 $0.0031 Long: $0.000 Short: $0.000 $10.92 8/27/2013
7/26/2013 $0.0032 Long: $0.000 Short: $0.000 $10.97 7/26/2013
6/27/2013 $0.0053 Long: $0.000 Short: $0.000 $10.94 6/27/2013
5/24/2013 $0.0051 Long: $0.000 Short: $0.000 $11.18 5/24/2013
4/26/2013 $0.0063 Long: $0.000 Short: $0.000 $11.25 4/26/2013
3/27/2013 $0.0051 Long: $0.000 Short: $0.000 $11.2 3/27/2013
2/27/2013 $0.0061 Long: $0.000 Short: $0.000 $11.19 2/27/2013
1/25/2013 $0.0044 Long: $0.000 Short: $0.000 $11.18 1/25/2013

*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 0.75%
With Sales Charge 0.75%

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

Subsidized - NAV 0.66%
Unsubsidized - NAV 0.66%

Portfolio

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

U.S. Treasury Notes, 2.8%, 2/28/2018 2.43%
U.S. Treasury Notes, 1.4%, 8/31/2020 1.37%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO, 4.6%, 12/25/2048 1.32%
Northern Trust Corp., 2.4%, 8/2/2022 1.31%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO, 4.5%, 12/25/2044 1.24%
Goldman Sachs Group, Inc. (The), 2.6%, 12/27/2020 1.11%
Synchrony Financial, 2.6%, 1/15/2019 1.10%
JPMorgan Chase & Co., 3.0%, 1/15/2023 1.09%
Athene Global Funding, 2.9%, 10/23/2018 1.08%
Republic Services, Inc., 3.8%, 5/15/2018 1.03%

Total Portfolio Holdings

Updated quarterly, upon availability.

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

<1 Year 20.3%
1-5 Years 63.0%
5-10 Years 13.9%
10-20 Years 2.4%
>20 Years 0.3%
Average Maturity 2.87 years
Effective Duration 2.65 years

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

United States 94.6%
Japan 2.2%
Canada 1.3%
United Kingdom 1.0%
Netherlands 0.6%
Norway 0.4%

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.
Government Bonds 21.20%
NonRated 1.20%
AAA 1.90%
AA 10.60%
A 25.70%
BBB 38.20%
BB 1.20%

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

Corporate Bonds 72.29%
Government Bonds 20.73%
Cash and Cash Equivalents 2.42%
General Obligation Bonds 1.80%
Asset-Backed Securities 1.28%
Revenue Bonds 0.93%
Mortgage-Backed Securities 0.55%

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. 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.

The Bloomberg Barclays U.S. 1-5 Year Government/Credit Bond Index is the 1-5 year component of the Bloomberg Barclays U.S. Government/Credit Index, which includes treasuries, agencies, publicly issued U.S. corporate and foreign debentures & secured notes. To be included in the index, securities must have at least one, and up to, but not including five years to maturity. Source: Bloomberg Barclays

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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