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Ivy VIP Natural Resources

  • $3.96 NAV as of 6/23/2017
  • ($0.04) / 1.02% Daily NAV Change
  • -11.93% YTD (NAV)


Tap the potential of natural resources companies worldwide

Investment universe
Can invest in international and domestic resource-related stocks, including oil and gas, precious metals, forest products, agribusiness, alternative energy and commodities.
Disciplined process
Portfolio manager uses a review of macroeconomic and global market environment plus a focus on fundamentals for stock selection in seeking long-term returns
Potential benefits
Commodities as an asset class historically have not moved in tandem with stocks, offering diversification and potential inflation protection by investing in life’s essential elements..

Morningstar Style Box

Source: Morningstar

Portfolio Management

David P. Ginther, CPA

  • Ivy Investment Management Company
  • 3 Years with Fund
  • 22 Years in Industry
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David P. Ginther is a senior vice president of Waddell & Reed Investment Management Company and Ivy Investment Management Company. Mr. Ginther joined Waddell & Reed in March 1995 as an investment analyst. He was named assistant vice president, senior investment analyst, and assistant portfolio manager in January 1999. Mr. Ginther was portfolio manager of Ivy Dividend Opportunities Fund from July 2003 to July 2013. He has been portfolio manager of the Ivy Energy Fund since April 2006 and was named portfolio manager of the Ivy Natural Resources Fund in July 2013. Prior to joining Waddell & Reed, Mr. Ginther was an executive with Amoco Corp. from 1986-1995. He graduated from Kansas State University in 1986 with a BS in accounting. He earned a Certified Public Accountant designation in 1992.

Michael T. Wolverton, CFA

  • Ivy Investment Management Company
  • <1 Year with Fund
  • 12 Years in Industry
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Michael T. Wolverton is a vice president of Waddell & Reed Investment Management Company and Ivy Investment Management Company. Mr. Wolverton joined the organization in 2005 as an investment analyst. He was named assistant vice president in 2012. In 2013, Mr. Wolverton was named vice president and assistant portfolio manager of Ivy Energy Fund, Waddell & Reed Advisors Energy Fund, Ivy Funds VIP Energy, Ivy Natural Resources Fund and Ivy Funds VIP Natural Resources. In October 2016, he was named co-portfolio manager on those funds and portfolios. Prior to joining the firm, Mr. Wolverton was affiliated with the MBA Investment Fund, LLC as a portfolio manager. He graduated from William Jewell College in 1997 with a BS in Accounting. He earned an MBA with an emphasis in Finance from the University of Texas at Austin, McCombs School of Business in 2005.

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.



Quarterly Fund Commentary

Daily Prices as of 6/23/2017

Net Asset Value (NAV) $3.96
Daily NAV Change ($) ($0.04) 1.02%
Weekly NAV Change ($) $-0.08 -2.05%
Public Offering Price (POP) $3.96

Fund Facts

CUSIP 46600H703
Fund Code 868
Fund Type Specialty Funds
Fund Inception 4/28/2005
Class Inception 4/28/2005
Fiscal Year End December
Dividends Paid May
Fund Assets (as of 5/31/2017) $122.9 mil
Total Equity Holdings (as of 5/31/2017) 40
Total Holdings (as of 5/31/2017) 41
Portfolio Turnover Rate (as of 12/31/2016) 67%
Lipper Category Natural Resources Funds
Morningstar Category Natural Resources
Benchmark MSCI ACWI IMI/ Energy Index USD Net
Benchmark MSCI ACWI IMI/ Materials Index USD Net


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 data quoted does not reflect any expenses or charges associated with owning a variable life insurance policy or variable annuity contract that invests in the Portfolio's shares. When such charges are deducted, actual investment performance in a variable annuity will be lower.

Monthly Rates of Return

Average Annual Total Returns as of 5/31/2017
(Returns for periods of less than 1-yr are not annualized)
Lipper Natural Resources Funds -9.00% 2.99% -10.51% -0.48% -1.28% 2.51%
Fund at NAV -8.26% 4.55% -10.95% -1.44% -4.70% 1.35%
MSCI ACWI IMI/ Energy Index USD Net -8.23% 5.46% -10.70% -0.38% -1.12% 3.27%
MSCI ACWI IMI ENERGY 55 MATERIALS 45 -0.86% 13.43% -5.33% 2.02% -0.05%
MSCI ACWI IMI/ Materials Index USD Net 8.66% 23.51% 1.30% 4.68% 0.78% 6.59%

Quarterly Rates of Return

Average Annual Total Returns as of 3/31/2017
(Returns for periods of less than 1-yr are not annualized)
MSCI ACWI IMI/ Energy Index USD Net -4.31% 16.05% -7.58% -2.46% 0.32% 3.68%
Fund at NAV -2.82% 18.21% -7.98% -3.11% -2.93% 1.86%
Lipper Natural Resources Funds -2.24% 20.49% -6.94% -1.77% 0.00% 3.15%
MSCI ACWI IMI ENERGY 55 MATERIALS 45 1.08% 20.74% -3.41% -0.63% 1.17%
MSCI ACWI IMI/ Materials Index USD Net 7.87% 26.32% 1.55% 1.32% 1.71% 6.62%

Calendar Year Return

Class II 23.81

Morningstar Ratings as of 5/31/2017 Morningstar Logo

Category: Natural Resources
Ratings are based on risk-adjusted returns
Overall out of 130
3 Year out of 130
5 Year out of 115
10 Year out of 68

Lipper Ranking through 5/31/2017 Lipper Logo

Category: Natural Resources Funds
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 11/33 33
3 Year 16/33 48
5 Year 14/25 54
10 Year 21/22 92

Expense Ratios as of 4/28/2017

Net 1.36%
Gross 1.36%

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

MSCI ACWI IMI/ Energy Index USD Net N/A
MSCI ACWI IMI/ Materials Index USD Net N/A

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

*Modern Portfolio Theory
Alpha 0.00
Beta 0.00
R-Squared 0.00
Sharpe Ratio -0.58
Capture Ratio Upside: 0.00%
Downside: 0.00%


Historical Prices Inception 4/28/2005

6/1/2017 $4.16 NO NO
6/2/2017 $4.13 NO NO
6/5/2017 $4.11 NO NO
6/6/2017 $4.16 NO NO
6/7/2017 $4.06 NO NO
6/8/2017 $4.06 NO NO
6/9/2017 $4.14 NO NO
6/12/2017 $4.14 NO NO
6/13/2017 $4.19 NO NO
6/14/2017 $4.09 NO NO
6/15/2017 $4.02 NO NO
6/16/2017 $4.04 NO NO
6/19/2017 $4.04 NO NO
6/20/2017 $3.98 NO NO
6/21/2017 $3.91 NO NO
6/22/2017 $3.92 NO NO
6/23/2017 $3.96 NO NO

Historical Distributions Inception 4/28/2005

5/17/2017 $0.0059 Long: $0.000 Short: $0.000 $4.21 5/17/2017
5/18/2016 $0.0274 Long: $0.000 Short: $0.000 $3.88 5/18/2016
5/20/2015 $0.0044 Long: $0.000 Short: $0.000 $4.97 5/20/2015
5/16/2012 $0 Long: $0.312 Short: $0.000 $4.56 5/16/2012
12/29/2008 $0.1089 Long: $0.192 Short: $0.250 $3.17 12/29/2008

*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 5/31/2017

Halliburton Co. Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and gas properties worldwide. 6.70%
Rio Tinto plc Rio Tinto Plc is an international business involved in each stage of metal and mineral production. The company produces aluminum, copper, diamonds, coal, iron ore, uranium, gold and industrial minerals (borates, titanium dioxide, salt, talc and zircon). 3.64%
BHP Billiton plc BHP Billiton Plc is a diversified natural resources company that operates worldwide. 3.57%
Schlumberger Ltd. Schlumberger Limited operates as an oilfield services company in the United States and internationally. 3.56%
EOG Resources, Inc. EOG Resources, Inc., explores, develops, produces and markets natural gas and crude oil primarily in producing basins in the United States, Canada, The Republic of Trinidad and Tobago, the United Kingdom, and The People's Republic of China. 3.48%
Magellan Midstream Partners L.P. Magellan Midstream Partners, L.P. is primarily involved in the storage, transportation, and distribution of refined petroleum products and ammonia. The company's asset portfolio includes a pipeline system serving the mid-continent region of the United States, petroleum products marine terminal facilities, petroleum products terminals, and an ammonia pipeline system. 3.47%
Flowserve Corp. Flowserve supplies pumps, valves, seals, automation and support services to the power, oil, gas, chemical and other industries across more than 50 countries. 3.22%
Enterprise Products Partners L.P. Enterprise Products Partners L.P., a master limited partnership, provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. 3.19%
Union Pacific Corp. Union Pacific Corporation owns the largest railroad in the U.S. It's diversified business mix includes agricultural products, automotive, chemicals, energy, industrial products and intermodal. 3.15%
RPC, Inc. RPC, Inc. provides a range of oilfield services and equipment for oil and gas companies involved in the exploration, production, and development of oil and gas properties in the U.S., Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East and New Zealand. 3.13%

Total Portfolio Holdings

Updated quarterly, upon availability.

Market Capitalization
as a % of equity assets as of 5/31/2017

Large 68.8%
Medium 30.1%
Small 1.1%
Median Market Cap (as of 5/31/2017) $13.9 bil

Top 10 Industry Allocation
as a % of Equity Holdings as of 5/31/2017

Oil & Gas Exploration & Production 28.0%
Oil & Gas Equipment & Services 17.4%
Oil & Gas Storage & Transportation 13.0%
Diversified Metals & Mining 7.3%
Oil & Gas Refining & Marketing 5.7%
Integrated Oil & Gas 5.0%
Oil & Gas Drilling 4.4%
Industrial Machinery 3.2%
Railroads 3.2%
Diversified Chemicals 3.0%

Sector Allocation
as a % of equity assets as of 5/31/2017

Energy 73.56%
Materials 20.04%
Industrials 6.40%
Utilities 0.00%

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

Domestic Common Stock 78.59%
Foreign Common Stock 20.84%
Cash and Cash Equivalents 0.57%
Preferred Stock 0.00%

Equity Country Allocation
as a % of equity assets as of 5/31/2017

United States 79.0%
United Kingdom 10.1%
Canada 8.9%
Netherlands 2.0%
China 0.0%

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 Portfolio's share will change, and you could lose money on your investment. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. 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. Investing in natural resources can be riskier than other types of investment activities because of a range of factors, including price fluctuation caused by real and perceived inflationary trends and political developments; and the cost assumed by natural resource companies in complying with environmental and safety regulations. Investing in physical commodities, such as gold, exposes the fund to other risk considerations such as potentially severe price fluctuations over short periods of time. These and other risks are more fully described in the portfolio's prospectus. Not all portfolios may be offered at all broker/dealers.

Index Description: MSCI ACWI (All Country World Index) 55% Energy and 45% Materials Index is a custom index that is a free float-adjusted market capitalization weighted index that is designed to measure the energy and materials equity market performance of developed and emerging markets. It is not possible to invest directly in an index.

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

Annuities are long-term financial products designed for retirement purposes. Annuity and life insurance guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. Variable investment options are subject to market risk, including loss of principal. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, management fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 59 1/2 may be subject to a 10% IRS tax penalty and surrender charges may apply.

Ivy VIP Global Natural Resources was renamed Ivy VIP Natural Resources on April 28, 2017.

Original shares of the Portfolio were renamed Class II shares on April 28, 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.

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.

MPT Statistics: Alpha is a measure of a portfolio’s actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of the portfolio’s return to fluctuations in the market index. R-squared indicates how much of a portfolio’s fluctuations are attributable to movements in the portfolio’s benchmark. Standard deviation is a measure of how volatile a portfolio’s returns are. Sharpe ratio is a measure of a portfolio’s risk-adjusted performance.

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.

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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