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Ivy Small Cap Core Fund

  • $17.32 NAV as of 9/21/2018
  • ($-0.04) / -0.23% Daily NAV Change
  • 12.61% YTD (NAV)


Concentrated approach seeking the best blend between value and growth small-cap stocks

Fund holds a limited number of stocks, allowing the portfolio management team to interact with company management and for the best ideas to drive performance.
Focus on performance catalysts
The portfolio management team focuses on identifying inflection points in company fundamentals. The team believes that with inexpensive stocks it is important to wait and see if a company’s fundamentals stabilize/inflect before fully entering a position.
Diversification & balance
Fund strives to participate in up markets while attempting to keep downdraft effects to a minimum. With a concentrated portfolio, this can be accomplished by focusing on diversification and making sure there is a balance between stable value names and higher risk/reward names. Diversification does not ensure a profit or protect against loss in a declining market.

Morningstar Style Box

Source: Morningstar

Portfolio Management

Kenneth G. Gau

  • Ivy Investment Management Company
  • 4 Years with Fund
  • 25 Years in Industry
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Ken Gau is portfolio manager of Ivy Small Cap Core Fund and Ivy VIP Small Cap Core. He was named portfolio manager of the funds in 2014. Mr. Gau joined the organization in 2000 as an equity investment analyst. He was appointed assistant vice president and joined the Small Cap Growth team as assistant portfolio manager in 2006. He was named assistant portfolio manager of small cap growth institutional accounts in 2011. He was appointed vice president in 2009 and senior vice president in 2017. While in business school, Mr. Gau participated in Chase Manhattan Bank’s summer associate program. Prior to returning for a graduate degree, he was an assistant treasurer at Bankers Trust Company. Mr. Gau graduated from The Pennsylvania State University Smeal College of Business Administration in 1994 with a BS in Finance. He earned an MBA from Cornell University Johnson Graduate School of Management in 2000.

Growth of a $10,000 Investment
through 7/31/2018

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.



Quarterly Fund Commentary

Daily Prices as of 9/21/2018

Net Asset Value (NAV) $17.32
Daily NAV Change ($) ($-0.04) -0.23%
Weekly NAV Change ($) $-0.30 -1.70%
Public Offering Price (POP) $17.32

Fund Facts

Ticker Symbol IYSBX
CUSIP 465898427
Fund Code 545
Fund Type Domestic Equity
Fund Inception 1/31/1997
Class Inception 12/8/2003
Fiscal Year End March
Dividends Paid March, June, September, December
Fund Assets (as of 8/31/2018) $788.7 mil
Total Equity Holdings (as of 8/31/2018) 53
Total Holdings (as of 8/31/2018) 58
Portfolio Turnover Rate (as of 3/31/2018) 119%
Lipper Category Small-Cap Core Funds
Morningstar Category Small Blend
Benchmark Russell 2000 TR USD


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 8/31/2018
(Returns for periods of less than 1-yr are not annualized)
Fund with maximum 5.00% CDSC 9.76% 21.37% 16.21% 13.06% 10.30% 8.91%
Lipper Small-Cap Core Funds 10.37% 21.15% 13.79% 11.48% 9.91%
Russell 2000 TR USD 14.26% 25.45% 16.11% 13.00% 10.46%
Fund at NAV 14.76% 25.37% 16.95% 13.18% 10.30% 8.91%

Quarterly Rates of Return

Average Annual Total Returns as of 6/30/2018
(Returns for periods of less than 1-yr are not annualized)
Fund with maximum 5.00% CDSC 2.22% 11.45% 11.77% 11.37% 10.10% 8.50%
Lipper Small-Cap Core Funds 4.78% 13.99% 9.37% 11.00% 9.78%
Fund at NAV 7.22% 15.45% 12.57% 11.50% 10.10% 8.50%
Russell 2000 TR USD 7.66% 17.57% 10.96% 12.46% 10.60%

Calendar Year Return

Russell 2000 TR USD 21.31 14.65
Class B 31.44 5.83 -6.97 27.28 12.20

Morningstar Ratings as of 8/31/2018 Morningstar Logo

Category: Small Blend
Ratings are based on risk-adjusted returns
Overall out of 645
3 Year out of 645
5 Year out of 543
10 Year out of 388

Lipper Ranking through 8/31/2018 Lipper Logo

Category: Small-Cap Core Funds
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 197/988 20
3 Year 98/823 12
5 Year 136/693 20
10 Year 236/496 48

Expense Ratios as of 7/31/2018

Net 2.39%
Gross 2.39%

5-Year Standard Deviation as of 8/31/2018

Russell 2000 TR USD 13.60

5-Year MPT* Statistics as of 8/31/2018

*Modern Portfolio Theory
Alpha 2.11
Beta 0.83
R-Squared 87.74
Sharpe Ratio 1.05
Capture Ratio Upside: 90.52%
Downside: 81.00%


Historical Prices Inception 12/8/2003

9/4/2018 $17.62 NO NO
9/5/2018 $17.54 NO NO
9/6/2018 $17.50 NO NO
9/7/2018 $17.50 NO NO
9/10/2018 $17.55 NO NO
9/11/2018 $17.61 NO NO
9/12/2018 $17.58 NO NO
9/13/2018 $17.53 NO NO
9/14/2018 $17.62 NO NO
9/17/2018 $17.38 NO NO
9/18/2018 $17.40 NO NO
9/19/2018 $17.25 NO NO
9/20/2018 $17.36 NO NO
9/21/2018 $17.32 NO NO

Historical Distributions Inception 12/8/2003

12/14/2017 $0 Long: $0.167 Short: $0.211 $15.11 12/14/2017
12/8/2016 $0 Long: $0.345 Short: $0.384 $14.34 12/8/2016
12/10/2015 $0 Long: $2.154 Short: $0.000 $11.72 12/10/2015
12/11/2014 $0 Long: $1.596 Short: $0.158 $14.28 12/11/2014
12/12/2013 $0.022 Long: $1.708 Short: $0.453 $14.89 12/12/2013

*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 8/31/2018

NAV 0.00%
With Sales Charge 0.00%


Top 10 Equity Holdings as a % of net assets 8/31/2018

Webster Financial Corp. Webster Financial Corp. operates as the bank and financial holding company for Webster Bank, National Association that provides financial services to individuals, families, and businesses in the U.S. 4.05%
Vonage Holdings Corp. Vonage Holdings Corp. provides communication services through cloud-connected devices for both business and consumer clients. The company was founded in 2000 and is headquartered in Holmdel, NJ. 3.78%
Cabot Corp. Cabot Corporation has businesses in chemicals, performance materials, and specialty fluids. The Company manufactures and sells carbon black, fumed silica, plastics, ink jet colorants, tantalum, niobium, and germanium. Cabot's specialty fluids business produces and markets cesium formate as a drilling and completion fluid for use in oil and gas well operations. 3.63%
Post Holdings, Inc. 3.49%
Red Rock Resorts, Inc., Class A Red Rock Resorts, Inc. operates as a gaming, development, and management company. The Company owns and manages casino and entertainment properties. Red Rock Resorts offers restaurants, entertainment venues, movie theaters, bowling, and banquet space, as well as casino gaming such as video poker, slot machines, table games, bingo, and race and sports wagering. 3.11%
Insulet Corp. 2.99%
Grand Canyon Education, Inc. Grand Canyon Education, Inc. provides online postsecondary education services in the United States. It focuses on offering graduate and undergraduate degree programs in education, business, and healthcare disciplines. 2.84%
ICU Medical, Inc. Developer and manufacturer of medical technologies used in infusion therapy, oncology and critical care 2.59%
Green Dot Corp., Class A 2.54%
Laredo Petroleum Holdings, Inc. Laredo Petroleum, Inc. operates as an independent energy company in the U.S. It focuses on the acquisition, exploration, and development of oil and natural gas properties, as well as the transportation of oil and natural gas primarily in the Permian Basin in West Texas. 2.49%

Total Portfolio Holdings

Updated quarterly, upon availability.

Market Capitalization
as a % of equity assets as of 8/31/2018

Large ( > $10 bil) 0.0%
Medium ($2 - $10 bil) 80.7%
Small ( < $2 bil) 19.3%
Median Market Cap (as of 8/31/2018) $3.8 bil

Top 10 Industry Allocation
as a % of Equity Holdings as of 8/31/2018

Regional Banks 10.3%
Industrial Machinery 6.2%
Packaged Foods & Meats 5.9%
Health Care Equipment 5.3%
Commodity Chemicals 5.3%
Casinos & Gaming 4.3%
Application Software 4.3%
Health Care Supplies 4.2%
Alternative Carriers 4.0%
Electronic Equipment & Instruments 3.7%

Sector Allocation
as a % of equity assets as of 8/31/2018

Information Technology 19.53%
Financials 16.87%
Health Care 15.59%
Industrials 12.98%
Consumer Discretionary 11.97%
Materials 5.99%
Consumer Staples 5.92%
Telecommunication Services 4.00%
Energy 2.63%
Real Estate 2.43%
Utilities 2.09%

Portfolio Composition
as a % of net assets as of 8/31/2018

Domestic Common Stock 93.57%
Cash and Cash Equivalents 5.47%
Foreign Common Stock 0.96%

Equity Country Allocation
as a % of equity assets as of 8/31/2018

United States 94.0%
United Kingdom 2.8%
Luxembourg 1.5%
France 1.0%
Netherlands 0.7%

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. Investing in small-cap growth and value stocks may carry more risk than investing in stocks of larger, more well-established companies. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. Value stocks are stocks of companies that may have experienced adverse developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of the Fund’s manager, undervalued. Such security may never reach what the manager believes to be its full value, or such security’s value may decrease. The Fund typically holds a limited number of stocks (generally 40 to 60). As a result, the appreciation or depreciation of any one security held by the Fund may have a greater impact on the Fund’s net asset value than it would if the Fund invested in a larger number of securities. 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 Russell 2000 Index is an index measuring the performance approximately 2,000 small-cap companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. It is not possible to invest directly in an index.

The Advantus Venture Fund merged into the Ivy Small Cap Value Fund on Dec. 8, 2003 (since renamed Ivy Small Cap Core Fund on March 3, 2017). The performance shown for periods prior to this date is that of the Advantus Venture Fund Class A shares, restated to reflect current sales charges applicable to Ivy Small Cap Core Fund Class A shares. Performance has not been restated to reflect the fees and expenses applicable to the Ivy Small Cap Core Fund. If these expenses were reflected, performance shown would differ. Fund performance after March 3, 2017, may significantly differ from prior performance due to changes made to the Fund's investment strategies.

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.

Prior to March 3, 2017, the Ivy Small Cap Core Fund was known as the Ivy Small Cap Value Fund and its benchmark was the Russell 2000 Value Index. The Fund’s benchmark is now the Russell 2000 Index. These changes were made to more closely align with the Fund’s investment objectives.

Class T shares were launched on July 5, 2017.

Fee Waiver and/or Expense Reimbursement: Through July 31, 2020, 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) as follows: Class I shares and Class N shares at 0.89%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees (Board).

Fee Waiver and/or Expense Reimbursement: Through July 31, 2019, 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 T shares and 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 without the consent of the Board.

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.

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.

© 2018 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.

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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