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Ivy Targeted Return Bond Fund

  • $9.96 NAV as of 3/24/2017
  • ($0.00) / 0.00% Daily NAV Change
  • 0.50% YTD (NAV)

Summary

Flexibility for an uncertain interest rate environment

Risk and return
A focus on identifying opportunities that we believe balance risk and return across the economic cycle.
Looking long term
Seeks to produce consistent returns across the market cycle and amid a variety of market conditions.
Diversification
A strategy that seeks to diversify risks through a broad range of securities issued in the U.S. and internationally.

Morningstar Style Box

LTD
Low
Source: Morningstar

Portfolio Management

Andres Sanchez Balcazar, CFA

  • Pictet Asset Management (subadvisor)
  • 1 Year with Fund
  • 17 Years in Industry
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Andres Sanchez Balcazar joined Pictet Asset Management’s fixed income team in 2011. He is Senior Investment Manager for the Pictet-Absolute Return Fixed Income fund and Co-Head of Global and Regional Bonds. Before joining Pictet, he was a senior portfolio manager for Western Asset Management Company Ltd for six years. During his tenure there he was responsible for global, European and absolute return fixed income portfolios. Previously, he worked for five years as a global and European portfolio manager with Merrill Lynch Investment Managers. He started his career in 1997 at Banco de la Republica de Colombia where he provided macroeconomic analysis of the U.S., Europe and Japan. He holds a degree in Economics from Universidad de los Andes and a Master’s degree in Management from HEC Paris. He is also a Chartered Financial Analyst (CFA) charter holder.

Thomas Hansen, CFA

  • Pictet Asset Management (subadvisor)
  • 1 Year with Fund
  • 8 Years in Industry

David Bopp, CFA

  • Pictet Asset Management (subadvisor)
  • 1 Year with Fund
  • 13 Years in Industry

Sarah Hargreaves, CFA

  • Pictet Asset Management (subadvisor)
  • 1 Year with Fund
  • 16 Years in Industry

Mickael Benhaim

  • Pictet Asset Management (subadvisor)
  • 1 Year with Fund
  • 26 Years in Industry

Growth of a $10,000 Investment
through 2/28/2017

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 3/24/2017

Net Asset Value (NAV) $9.96
Daily NAV Change ($) ($0.00) 0.00%
Weekly NAV Change ($) $0.02 0.20%
Public Offering Price (POP) $10.57

Fund Facts

Ticker Symbol IRBAX
CUSIP 46600B789
Fund Code 652
Fund Type Fixed Income Funds
Fund Inception 1/4/2016
Class Inception 1/4/2016
Fiscal Year End September
Dividends Paid March, June, September, December
Fund Assets (as of 2/28/2017) $126.0 mil
Total Holdings (as of 2/28/2017) 188
Portfolio Turnover Rate (as of 9/30/2016) 90%
Lipper Category Alternative Credit Focus
Morningstar Category Nontraditional Bond
Benchmark Bloomberg Barclays US Treasury Bill 1-3 Mon 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 2/28/2017
(Returns for periods of less than 1-yr are not annualized)
 
Fund with 5.75% sales charge -4.95% -3.13% -3.29%
Bloomberg Barclays US Treasury Bill 1-3 Mon TR USD 0.08% 0.32% 0.13% 0.10% 0.65% 0.30%
Fund at NAV 0.81% 2.82% 1.82%
Lipper Alternative Credit Focus 1.45% 8.62% 1.52% 2.27% 3.49% 6.12%

Quarterly Rates of Return

Average Annual Total Returns as of 12/31/2016
(Returns for periods of less than 1-yr are not annualized)
 
Fund at NAV 1.28%
Fund with 5.75% sales charge -4.54%
Bloomberg Barclays US Treasury Bill 1-3 Mon TR USD 0.26% 0.26% 0.10% 0.09% 0.72% 0.26%
Lipper Alternative Credit Focus 5.48% 5.48% 1.43% 2.65% 3.55% 5.48%

Calendar Year Return

  2012
Bloomberg Barclays US Treasury Bill 1-3 Mon TR USD 0.08 0.05 0.02 0.03 0.26

Lipper Ranking through 2/28/2017 Lipper Logo

Category: Alternative Credit Focus
 
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 266/288 93
3 Year
5 Year
10 Year

Expense Ratios as of 1/31/2017

Net 1.38%
Gross 1.42%

5-Year Standard Deviation as of

Bloomberg Barclays US Treasury Bill 1-3 Mon TR USD N/A

Distributions

Historical Prices Inception 1/4/2016

3/1/2017 $9.98 NO NO
3/2/2017 $9.98 NO NO
3/3/2017 $9.97 NO NO
3/6/2017 $9.98 NO NO
3/7/2017 $9.96 NO NO
3/8/2017 $9.95 NO NO
3/9/2017 $9.94 NO NO
3/10/2017 $9.94 NO NO
3/13/2017 $9.93 NO NO
3/14/2017 $9.93 NO NO
3/15/2017 $9.94 NO NO
3/16/2017 $9.93 NO NO
3/17/2017 $9.94 NO NO
3/20/2017 $9.95 NO NO
3/21/2017 $9.96 NO NO
3/22/2017 $9.96 NO NO
3/23/2017 $9.96 NO NO
3/24/2017 $9.96 NO NO

Historical Distributions Inception 1/4/2016

12/8/2016 $0.125 Long: $0.038 Short: $0.054 $9.89 12/8/2016

*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 2/28/2017

NAV 1.24%
With Sales Charge 1.17%

Annualized 30-Day SEC Yield as of 2/28/2017

Subsidized - NAV 0.86%
Unsubsidized - NAV 0.79%

Portfolio

Top 10 Holdings as a % of net assets 2/28/2017

U.S. Treasury Notes, 4.5%, 5/15/2017 12.70%
U.S. Treasury Notes, 3.3%, 3/31/2017 11.05%
U.S. Treasury Notes, 5.0%, 5/15/2037 4.72%
Euro Bobl 5-Year Bond, 6/12/2017 4.69%
U.S. Treasury Bonds, 4.5%, 2/15/2036 4.28%
U.S. 5-Year Treasury Note, 7/6/2017 3.64%
U.S. Treasury Notes, 1.0%, 11/30/2018 2.77%
Bundesrepublik Deutschland, 3.5%, 7/4/2019 2.61%
Mondelez International, Inc., 0.8%, 3/1/2017 2.43%
Bundesrepublik Deutschland, 4.8%, 7/4/2028 1.87%

Total Portfolio Holdings

Updated quarterly, upon availability.

Fixed Income Country Allocation
as a % of bond holdings as of 2/28/2017

United States 51.8%
Germany 10.5%
Norway 4.1%
Netherlands 4.0%
Canada 3.5%
Mexico 2.4%
Sweden 2.3%
France 2.2%
Denmark 1.7%
Indonesia 1.5%
United Kingdom 1.3%
Australia 1.1%
Ireland 1.0%
Peru 0.9%
Italy 0.8%
Panama 0.8%
Belgium 0.8%
Columbia 0.7%
Hong Kong 0.6%
Brazil 0.6%
Switzerland 0.6%
Turkey 0.6%
United Arab Emirates 0.6%
Sri Lanka 0.6%
Spain 0.6%
Japan 0.6%
India 0.5%
Luxembourg 0.5%
Argentina 0.5%
China 0.5%
Singapore 0.4%
Austria 0.4%
Bermuda 0.4%
Cameroon 0.2%
South Africa 0.2%
Poland 0.2%
Croatia 0.2%
Tunisia 0.2%
Jersey 0.1%

Quality
as a % of fixed income assets as of 2/28/2017

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 41.70%
NonRated 2.10%
AAA 18.10%
AA 2.60%
A 9.30%
BBB 18.00%
BB 6.10%
B 2.10%

Portfolio Composition
as a % of net assets as of 2/28/2017

Government Bonds 37.34%
Corporate Bonds 29.14%
Other Government Securities 23.03%
Other Financial Instruments 8.87%
Cash and Cash Equivalents 1.35%
Foreign Common Stock 0.27%

Total Portfolio Holdings

Updated quarterly, upon availability.

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. 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.

Mortgage-backed and asset-backed securities in which the Fund may invest are subject to prepayment risk and extension risk.

The Fund employs investment management techniques that differ from those often used by traditional bond funds, including a targeted return strategy, and may not always perform in line with the performance of the bond markets. The Fund is also non-diversified and may hold fewer securities than other funds and a decline in the value of these holdings would cause the Fund's overall value to decline to a greater degree than a more diversified fund. The Fund expects to use derivatives in pursuing its investment objective. 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. These and other risks are more fully described in the Fund's prospectus.

Diversification does not guarantee a profit or protect against loss in a declining market. It is a method to manage risk.

Index Description: The Barclays U.S. Treasury Bills: 1-3 Month Index - Includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. In addition, the securities are denominated in U.S. dollars and are fixed rate and non-convertible. It is not possible to invest directly in an index.

Fee Waiver and/or Expense Reimbursement: Through January 31, 2018, 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 at 1.38%; Class C shares at 2.08%; Class I shares at 1.00%; Class N shares at 0.87%; and Class Y shares at 1.25%. 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.

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.

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.

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.

The Fund is managed by Ivy Investment Management Company (IICO) and subadvised by Pictet Asset Management SA (Pictet SA). IICO oversees the Fund's investments and its business operations. Pictet SA chooses the Fund's investments and provides related advisory services. Pictet SA delegates to its affiliate, Pictet Asset Management Limited (Pictet UK, and collectively with Pictet SA, Pictet), certain portfolio management, trading and other responsibilities for the Fund.

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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