Ivy Funds VIP High Income
- $3.51 NAV as of 9/23/2016
- ($0.00) / 0.06% Daily NAV Change
- 12.90% YTD (NAV)
Seeking to increase income potential through credit selection
- The Fund has the ability to invest in the full spectrum of credit instruments including both bonds and loans.
- Management discipline
- A high priority on individual credit selection instead of sector bets on future market direction.
- The potential to generate higher levels of income than an investment-grade portfolio, although at greater risk
Morningstar Style Box
- Waddell & Reed Investment Management Company
- 2 Years with Fund
- 18 Years in Industry
Chad Gunther graduated from the University of Kansas in 1993 with a BS in business administration with an emphasis in economics. He earned an MBA with an emphasis in finance from Washington University/St. Louis Olin Graduate School of Business in 2000. He joined the firm in 2003 as a fixed income investment analyst. He was appointed assistant vice president and assistant portfolio manager of the Ivy High Income Fund, and Ivy Funds VIP High Income in 2008. He was appointed vice president in 2013. He was appointed portfolio manager in 2014. Prior to joining the firm, he was affiliated with Piper Jaffray, George K. Baum & Company and Dialpad Communications.
Growth of a $10,000 Investment
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.
Daily Prices as of 9/23/2016
|Net Asset Value (NAV)||$3.51|
|Daily NAV Change ($)||($0.00)||0.06%|
|Weekly NAV Change ($)||$0.03||0.85%|
|Public Offering Price (POP)||$3.51|
|Fund Type||Fixed Income Funds|
|Fiscal Year End||December|
|Fund Assets (as of 8/31/2016)||$812.4 mil|
|Total Equity Holdings|
|Total Holdings (as of 8/31/2016)||303|
|Portfolio Turnover Rate (as of 6/30/2016)||19%|
|Lipper Category||High Current Yield Funds|
|Morningstar Category||High Yield Bond|
|Benchmark||BofAML US HY Master II 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. Class A shares, including sales charges, reflects the maximum applicable front-end sales load.
Monthly Rates of Return
|Lipper High Current Yield Funds||10.77%||6.36%||4.14%||6.31%||6.35%||—|
|Fund at NAV||12.27%||5.12%||3.75%||7.64%||7.82%||7.60%|
|BofAML US HY Master II TR USD||14.58%||9.18%||5.39%||7.32%||7.66%||—|
Quarterly Rates of Return
|Lipper High Current Yield Funds||6.52%||0.48%||3.16%||4.75%||6.14%||—|
|Fund at NAV||7.51%||-1.45%||2.88%||6.09%||7.47%||7.49%|
|BofAML US HY Master II TR USD||9.32%||1.71%||4.18%||5.70%||7.44%||—|
Calendar Year Return
|BofAML US HY Master II TR USD||4.38||15.59||7.42||2.50||-4.64|
Morningstar Ratings as of 8/31/2016
|Ratings are based on risk-adjusted returns|
|Overall out of 654|
|3 Year out of 654|
|5 Year out of 524|
|10 Year out of 368|
Lipper Ranking through 8/31/2016
|Rankings are based on average annual total returns, but do not consider sales charges.|
Expense Ratios as of 4/30/2016
3-Year Standard Deviation as of 8/31/2016
|BofAML US HY Master II TR USD||6.44|
3-Year MPT* Statistics as of 8/31/2016
|*Modern Portfolio Theory|
Historical Prices Inception 7/13/1987
|Date||Price||Dividend Reinvest Date||Capital Gain Reinvest Date|
Historical Distributions Inception 7/13/1987
|Ex-date||Income||Capital Gains||Reinvest Gains||Payment Date|
|5/18/2016||$0.2613||Long: $0.000 Short: $0.000||$3.3||5/18/2016|
|5/20/2015||$0.235||Long: $0.030 Short: $0.010||$3.7||5/20/2015|
|5/21/2014||$0.1962||Long: $0.030 Short: $0.000||$3.93||5/21/2014|
|5/22/2013||$0.1906||Long: $0.000 Short: $0.000||$3.85||5/22/2013|
|5/16/2012||$0.2392||Long: $0.000 Short: $0.000||$3.48||5/16/2012|
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 8/31/2016
|With Sales Charge||7.49%|
Annualized 30-Day SEC Yield as of 8/31/2016
|Subsidized - NAV||7.40%|
|Unsubsidized - NAV||7.37%|
Top 10 Holdings as a % of net assets 8/31/2016
|Misys plc and Magic Newco LLC, 12.0%, 6/12/2019||2.75%|
|Laureate Education, Inc., 10.0%, 9/1/2019||2.22%|
|Altice S.A., 7.8%, 5/15/2022||1.47%|
|Onex USI Acquisition Corp., 7.8%, 1/15/2021||1.34%|
|Jo-Ann Stores Holdings, Inc., 9.8%, 10/15/2019||1.30%|
|B-Corp Merger Sub, Inc., 8.3%, 6/1/2019||1.10%|
|WaveDivision Escrow LLC and WaveDivision Escrow Corp., 8.1%, 9/1/2020||1.10%|
|Kronos Acquisition Holdings, Inc., 9.0%, 8/15/2023||1.10%|
|Balboa Merger Sub, Inc., 11.4%, 12/1/2021||1.09%|
|Patriot Merger Corp., 9.0%, 7/15/2021||1.07%|
Total Portfolio Holdings
as a % of fixed income assets as of 7/31/2016
|Average Maturity||4.04 years|
|Effective Duration||3.16 years|
Fixed Income Country Allocation
as a % of bond holdings as of 8/31/2016
as a % of fixed income assets as of 8/31/2016
|Quality: Our preference is to always use 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.|
as a % of net assets as of 8/31/2016
|Cash and Cash Equivalents||12.65%|
|Foreign Common Stock||0.02%|
|Domestic Common Stock||0.02%|
Total Portfolio HoldingsUpdated quarterly, upon availability.
Risk Factors: The value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio 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 Portfolio may fall as interest rates rise. Investing in high-income securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. In addition to the risks typically associated with fixed-income securities, loan participations in which the Portfolio may invest carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loan participations may be unsecured or not fully collateralized, may be subject to restrictions on resale and sometimes trade infrequently on the secondary market. These and other risks are more fully described in the Portfolio's prospectus. Not all portfolios may be offered at all broker/ dealers.
Stylebox: The Morningstar Fixed Income style box reveals a fund’s investment style. 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 a Nationally Recognized Statistical Rating Organization (NRSRO). 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. Credit quality breakdowns are shown for corporate-bond holdings and depict the quality of bonds in the underlying portfolio. The report shows the percentage of fixed-income securities that fall within each credit quality rating as assigned by an NRSRO. Bonds not rated by an NRSRO are included in the not rated (NR) category. 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 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 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.
Index Description: The BofAML U.S. HY Master II TR USD tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. It is not possible to invest directly in an index
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. The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies. They are not offered or made available directly to the public. Not all portfolios may be offered at all broker/dealer firms.
Insurance and annuity products are offered through relationships with unaffiliated insurance companies
Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product. This and other important information is contained in the portfolio and variable insurance product prospectuses, which may be obtained here, from a financial advisor, or by contacting the applicable insurance company. Read them carefully before investing.
Fee Waiver and/or Expense Reimbursement: Through July 31, 2017, 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 for the Fund's Class A shares at 1.51%, Class I shares at 1.16%, and Class Y shares at 1.51. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Board of Trustees.
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.
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 Fund's shares. When such charges are deducted, actual investment performance in a variable annuity will be lower.
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 the degree to which a fund’s return varies from its previous returns or from the average of all similar funds, generally expressed as a percentage. The larger the standard deviation, the greater the likelihood (and risk) that a security’s performance will fluctuate from the average return. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized returns of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).
Morningstar Ratings: For each fund with at least a 3-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of all sales charges), placing emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund and rated separately.) A fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the share classes specified; other classes may have different performance characteristics.
Quality: Our preference is to always use 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.
Chad A. Gunther of Ivy Investment Management Company was named portfolio manager of the Fund on July 9, 2014. Prior to that, the Fund was managed by William M. Nelson.
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.