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Ivy Small Cap Value Fund

  • $18.70 NAV as of 2/22/2017
  • ($-0.03) / -0.16% Daily NAV Change
  • 4.18% YTD (NAV)


Seeking small companies with the potential for big value

High conviction
Invests with conviction, holding a limited number of stocks. This allows for greater opportunity for the Fund’s manager to interact with company management and for the best ideas to drive performance.
Beyond valuation
The Fund’s manager does not look exclusively at valuation. He believes that with inexpensive stocks it is important to wait and see if a company’s fundamentals stabilize/inflect before fully entering a position. Missing value traps is just as important as finding big winners.
The Fund strives to participate in up markets while attempting to keep the effects of downdrafts to a minimum. With a concentrated portfolio, this can only be accomplished by focusing on diversification and making sure the portfolio has a balance between stable value names (defensive) and higher risk/reward names (offensive).

Morningstar Style Box

Source: Morningstar

Portfolio Management

Kenneth G. Gau

  • Ivy Investment Management Company
  • 2 Years with Fund
  • 22 Years in Industry
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Kenneth G. Gau is a vice president of Ivy Investment Management Company and Waddell & Reed Investment Management Company. Mr. Gau joined the firm in June 2000 as an investment analyst. He was appointed assistant vice president in February 2006 and joined the small-cap growth team as assistant portfolio manager in March 2006. Mr. Gau was appointed vice president in January 2009. He was named assistant portfolio manager of small-cap growth institutional accounts in February 2011. In August 2014, Mr. Gau was appointed portfolio manager of the Ivy Small Cap Value Fund and Ivy Funds VIP Small Cap Value. He graduated from The Pennsylvania State University Smeal College of Business Administration in May 1994 with a BS in finance. He earned an MBA from Cornell University Johnson Graduate School of Management in May 2000. While in business school, Mr. Gau participated in Chase Manhattan Bank’s summer associate program. Prior to returning for a graduate degree, he worked at Bankers Trust for approximately three and a half years.

Growth of a $10,000 Investment
through 1/31/2017

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.



Quarterly Fund Commentary

Daily Prices as of 2/22/2017

Net Asset Value (NAV) $18.70
Daily NAV Change ($) ($-0.03) -0.16%
Weekly NAV Change ($) $0.17 0.92%
Public Offering Price (POP) $18.70

Fund Facts

Ticker Symbol IYSYX
CUSIP 465898393
Fund Code 792
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 1/31/2017) $480.8 mil
Total Equity Holdings (as of 1/31/2017) 60
Total Holdings (as of 1/31/2017) 65
Portfolio Turnover Rate (as of 9/30/2016) 88%
Lipper Category Small-Cap Value Funds
Morningstar Category Small Blend
Benchmark Russell 2000 Value 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.

Class Y shares are not subject to sales charges.

Monthly Rates of Return

Average Annual Total Returns as of 1/31/2017
(Returns for periods of less than 1-yr are not annualized)
Russell 2000 Value TR USD -0.71% 40.22% 9.48% 13.44% 6.03% 8.72%
Lipper Small-Cap Value Funds -0.25% 35.45% 7.80% 12.29% 6.55% 6.48%
Fund at NAV 0.84% 36.22% 10.56% 14.11% 7.67% 8.95%

Quarterly Rates of Return

Average Annual Total Returns as of 12/31/2016
(Returns for periods of less than 1-yr are not annualized)
Lipper Small-Cap Value Funds 26.78% 26.78% 6.48% 13.87% 6.76% 6.56%
Fund at NAV 28.61% 28.61% 9.04% 15.36% 7.56% 8.94%
Russell 2000 Value TR USD 31.74% 31.74% 8.31% 15.07% 6.26% 8.83%

Calendar Year Return

Russell 2000 Value TR USD 18.05 34.52 4.22 -7.47 31.74
Class Y 18.40 33.08 7.05 -5.84 28.61

Morningstar Ratings as of 1/31/2017 Morningstar Logo

Category: Small Blend
Ratings are based on risk-adjusted returns
Overall out of 625
3 Year out of 625
5 Year out of 536
10 Year out of 366

Lipper Ranking through 1/31/2017 Lipper Logo

Category: Small-Cap Value Funds
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 110/318 35
3 Year 36/268 14
5 Year 50/238 21
10 Year 35/148 24

Expense Ratios as of 7/31/2016

Net 1.37%
Gross 1.37%

5-Year Standard Deviation as of 1/31/2017

Russell 2000 Value TR USD 14.04

5-Year MPT* Statistics as of 1/31/2017

*Modern Portfolio Theory
Alpha 2.66
Beta 0.83
R-Squared 88.11
Sharpe Ratio 1.12
Capture Ratio Upside: 92.69%
Downside: 82.26%


Historical Prices Inception 12/8/2003

2/1/2017 $18.03 NO NO
2/2/2017 $17.99 NO NO
2/3/2017 $18.29 NO NO
2/6/2017 $18.11 NO NO
2/7/2017 $17.99 NO NO
2/8/2017 $17.91 NO NO
2/9/2017 $18.27 NO NO
2/10/2017 $18.41 NO NO
2/13/2017 $18.45 NO NO
2/14/2017 $18.53 NO NO
2/15/2017 $18.61 NO NO
2/16/2017 $18.56 NO NO
2/17/2017 $18.56 NO NO
2/21/2017 $18.73 NO NO

Historical Distributions Inception 12/8/2003

12/8/2016 $0 Long: $0.345 Short: $0.486 $18.31 12/8/2016
12/10/2015 $0 Long: $2.154 Short: $0.000 $14.73 12/10/2015
12/11/2014 $0 Long: $1.596 Short: $0.246 $17.17 12/11/2014
12/12/2013 $0.077 Long: $1.708 Short: $0.601 $17.46 12/12/2013
12/13/2012 $0 Long: $0.424 Short: $0.172 $15.26 12/13/2012

*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.


Top 10 Equity Holdings as a % of net assets 1/31/2017

Take-Two Interactive Software, Inc. Take-Two Interactive Software, Inc. is an American multinational publisher, developer, and distributor of video games and video game peripherals. 5.21%
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. 4.55%
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. 4.49%
Pinnacle Foods, Inc. Pinnacle Foods Inc., through its subsidiaries, manufactures, markets, and distributes branded convenience food products in North America. 4.16%
Communications Sales & Leasing, Inc. Communications Sales & Leasing, Inc., an internally managed real estate investment trust, engages in the acquisition and construction of mission critical communications infrastructure; and provision of wireless infrastructure solutions for the communications industry. 4.06%
AMC Entertainment Holdings, Inc., Class A AMC Entertainment Holdings, Inc., through its subsidiaries, operates as a theatrical exhibition company in the United States and internationally. 3.79%
Healthways, Inc. 3.08%
Monro Muffler Brake, Inc. Monro Muffler Brake, Inc. is a provider of automotive undercar repair and tire services. 2.98%
Woodward, Inc. Woodward, Inc. designs, manufactures, and services energy control and optimization solutions for the aerospace, industrial, and energy markets worldwide. 2.92%
Western Alliance Bancorp. 2.71%

Total Portfolio Holdings

Updated quarterly, upon availability.

Market Capitalization
as a % of equity assets as of 1/31/2017

Large 0.0%
Medium 64.2%
Small 35.8%
Median Market Cap (as of 1/31/2017) $2.9 bil

Top 10 Industry Allocation
as a % of Equity Holdings as of 1/31/2017

Regional Banks 19.5%
Oil & Gas Exploration & Production 5.9%
Specialty Chemicals 5.6%
Home Entertainment Software 5.3%
Packaged Foods & Meats 5.2%
Specialized REITs 5.0%
Industrial Machinery 4.6%
Trucking 4.1%
Movies & Entertainment 3.9%
Trading Companies & Distributors 3.6%

Sector Allocation
as a % of equity assets as of 1/31/2017

Financials 22.45%
Industrials 19.30%
Information Technology 10.82%
Consumer Discretionary 10.29%
Energy 6.89%
Consumer Staples 6.73%
Real Estate 6.41%
Materials 6.10%
Health Care 5.66%
Telecommunication Services 3.43%
Utilities 1.92%

Portfolio Composition
as a % of net assets as of 1/31/2017

Domestic Common Stock 97.82%
Cash and Cash Equivalents 2.18%

Equity Country Allocation
as a % of equity assets as of 1/31/2017

United States 100.0%

Total Portfolio Holdings

Updated quarterly, upon availability.


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Risk Factors: The value of the Fund’s shares will change, and you could lose money on your investment. Investing in small-cap stocks may carry more risk than investing in stocks of larger, more well-established companies. 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. 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.

Stylebox: The Morningstar Equity Style Box reveals a fund's investment strategy by displaying the fund's investment style and the market capitalization of the stocks owned.

Index Description: Russell 2000 Value is an unmanaged index comprised of securities that represent the small cap sector of the stock market. 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. 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 Value Fund Class A shares. Performance has not been restated to reflect the fees and expenses applicable to the Ivy Small Cap Value 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.

High recent returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

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.

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 RatingTM 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. 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.

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

Please remember that an investment in a mutual fund involves risk. Investment return and principal value of a mutual fund investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

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

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