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WRA High Income Fund

  • $6.66 NAV as of 12/9/2016
  • ($0.01) / 0.15% Daily NAV Change
  • 15.59% YTD (NAV)

Summary

Overview

The Fund invests primarily in a diversified portfolio of high-yield, high-risk, fixed-income securities of U.S. and foreign issuers. The manager looks at a number of factors in selecting securities for the Fund, beginning with the economic environment, interest rate trends and industry fundamentals, progressing to analysis of a company's fundamentals, including financial strength, growth of operating cash flows, strength of management, borrowing requirements and potential to improve credit standing, responsiveness to changes in interest rates and business conditions, strength of business model, and capital structure and future capital needs.

Morningstar Style Box

Growth
Large
LTD
Low
Source: Morningstar

Portfolio Management

Chad Gunther

  • Waddell & Reed Investment Management Company
  • 2 Years with Fund
  • 18 Years in Industry
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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, Waddell & Reed Advisors 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
through 11/30/2016

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 12/9/2016

Net Asset Value (NAV) $6.66
Daily NAV Change ($) ($0.01) 0.15%
Weekly NAV Change ($) $0.07 1.06%
Public Offering Price (POP) $6.66

Fund Facts

Ticker Symbol WYHIX
CUSIP 930057674
Fund Code 746
Fund Type Fixed Income Funds
Fund Inception 7/9/1979
Class Inception 1/4/1996
Fiscal Year End September
Dividends Paid Monthly
Fund Assets (as of 11/30/2016) $2.0 bil
Total Equity Holdings
Total Holdings (as of 11/30/2016) 290
Portfolio Turnover Rate (as of 9/30/2016) 38%
Lipper Category High Current Yield Funds
Morningstar Category High Yield Bond
Benchmark BofAML US HY Master II 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.

Class Y shares are not subject to sales charges.

Monthly Rates of Return

Average Annual Total Returns as of 11/30/2016
(Returns for periods of less than 1-yr are not annualized)
  YTD 1YR 3YR 5YR 10YR LIFE
Lipper High Current Yield Funds 11.35% 8.78% 2.84% 6.31% 5.86%
Fund at NAV 14.55% 10.41% 3.23% 8.21% 7.51% 6.88%
BofAML US HY Master II TR USD 15.22% 12.25% 4.23% 7.46% 7.25% 7.09%

Quarterly Rates of Return

Average Annual Total Returns as of 9/30/2016
(Returns for periods of less than 1-yr are not annualized)
  YTD 1YR 3YR 5YR 10YR LIFE
Lipper High Current Yield Funds 11.49% 9.32% 3.78% 7.05% 6.19%
Fund at NAV 13.33% 8.62% 3.88% 8.80% 7.67% 6.88%
BofAML US HY Master II TR USD 15.32% 12.82% 5.27% 8.24% 7.59% 7.16%

Calendar Year Return

  2011 2012 2013 2014 2015
BofAML US HY Master II TR USD 4.38 15.59 7.42 2.50 -4.64
Class Y 5.22 19.44 11.12 2.19 -6.62

Morningstar Ratings as of 11/30/2016 Morningstar Logo

Category: High Yield Bond
Ratings are based on risk-adjusted returns
Overall out of 605
3 Year out of 605
5 Year out of 469
10 Year out of 311

Lipper Ranking through 11/30/2016 Lipper Logo

Category: High Current Yield Funds
  Rank Percentile
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 139/675 21
3 Year 232/572 41
5 Year 24/445 6
10 Year 10/299 4

Expense Ratios as of 1/31/2016

Net 0.74%
Gross 0.74%

5-Year Standard Deviation as of 11/30/2016

BofAML US HY Master II TR USD 5.54

Distributions

Historical Prices Inception 1/4/1996

Date Price Dividend Reinvest Date Capital Gain Reinvest Date
12/1/2016 $6.60 NO NO
12/2/2016 $6.59 NO NO
12/5/2016 $6.61 NO NO
12/6/2016 $6.63 NO NO
12/7/2016 $6.65 NO NO
12/8/2016 $6.65 NO NO
12/9/2016 $6.66 NO NO

Historical Distributions Inception 1/4/1996

Ex-date Income Capital Gains Reinvest Gains Payment Date
11/25/2016 $0.0375 Long: $0.000 Short: $0.000 $6.57 11/25/2016
10/27/2016 $0.0436 Long: $0.000 Short: $0.000 $6.64 10/27/2016
9/27/2016 $0.0394 Long: $0.000 Short: $0.000 $6.6 9/27/2016
8/26/2016 $0.0424 Long: $0.000 Short: $0.000 $6.6 8/26/2016
7/27/2016 $0.0401 Long: $0.000 Short: $0.000 $6.54 7/27/2016
6/27/2016 $0.0381 Long: $0.000 Short: $0.000 $6.33 6/27/2016
5/27/2016 $0.0435 Long: $0.000 Short: $0.000 $6.41 5/27/2016
4/27/2016 $0.0407 Long: $0.000 Short: $0.000 $6.37 4/27/2016
3/24/2016 $0.0352 Long: $0.000 Short: $0.000 $6.2 3/24/2016
2/26/2016 $0.0427 Long: $0.000 Short: $0.000 $5.96 2/26/2016
1/27/2016 $0.032 Long: $0.000 Short: $0.000 $5.97 1/27/2016
12/31/2015 $0.0481 Long: $0.000 Short: $0.000 $6.18 12/31/2015
11/27/2015 $0.0448 Long: $0.000 Short: $0.000 $6.46 11/27/2015
10/27/2015 $0.0419 Long: $0.000 Short: $0.000 $6.68 10/27/2015
9/25/2015 $0.0429 Long: $0.000 Short: $0.000 $6.66 9/25/2015
8/27/2015 $0.0414 Long: $0.000 Short: $0.000 $6.77 8/27/2015
7/27/2015 $0.0397 Long: $0.000 Short: $0.000 $6.91 7/27/2015
6/26/2015 $0.043 Long: $0.000 Short: $0.000 $7.04 6/26/2015
5/27/2015 $0.0417 Long: $0.000 Short: $0.000 $7.16 5/27/2015
4/27/2015 $0.0404 Long: $0.000 Short: $0.000 $7.18 4/27/2015
3/27/2015 $0.0389 Long: $0.000 Short: $0.000 $7.12 3/27/2015
2/27/2015 $0.0471 Long: $0.000 Short: $0.000 $7.17 2/27/2015
1/27/2015 $0.0343 Long: $0.000 Short: $0.000 $7.04 1/27/2015
12/31/2014 $0.0483 Long: $0.000 Short: $0.000 $7.12 12/31/2014
12/11/2014 $0 Long: $0.097 Short: $0.045 $7.11 12/11/2014
11/26/2014 $0.0429 Long: $0.000 Short: $0.000 $7.45 11/26/2014
10/27/2014 $0.0381 Long: $0.000 Short: $0.000 $7.53 10/27/2014
9/26/2014 $0.041 Long: $0.000 Short: $0.000 $7.53 9/26/2014
8/27/2014 $0.0426 Long: $0.000 Short: $0.000 $7.69 8/27/2014
7/25/2014 $0.0391 Long: $0.000 Short: $0.000 $7.69 7/25/2014
6/27/2014 $0.0456 Long: $0.000 Short: $0.000 $7.74 6/27/2014
5/27/2014 $0.0404 Long: $0.000 Short: $0.000 $7.71 5/27/2014
4/25/2014 $0.0437 Long: $0.000 Short: $0.000 $7.69 4/25/2014
3/27/2014 $0.0427 Long: $0.000 Short: $0.000 $7.71 3/27/2014
2/27/2014 $0.0461 Long: $0.000 Short: $0.000 $7.71 2/27/2014
1/27/2014 $0.0399 Long: $0.000 Short: $0.000 $7.62 1/27/2014
12/31/2013 $0.0521 Long: $0.000 Short: $0.000 $7.6 12/31/2013
12/12/2013 $0 Long: $0.172 Short: $0.016 $7.6 12/12/2013
11/27/2013 $0.049 Long: $0.000 Short: $0.000 $7.79 11/27/2013
10/25/2013 $0.0474 Long: $0.000 Short: $0.000 $7.77 10/25/2013
9/27/2013 $0.0502 Long: $0.000 Short: $0.000 $7.67 9/27/2013
8/27/2013 $0.047 Long: $0.000 Short: $0.000 $7.62 8/27/2013
7/26/2013 $0.0478 Long: $0.000 Short: $0.000 $7.69 7/26/2013
6/27/2013 $0.0487 Long: $0.000 Short: $0.000 $7.57 6/27/2013
5/24/2013 $0.0441 Long: $0.000 Short: $0.000 $7.81 5/24/2013
4/26/2013 $0.0497 Long: $0.000 Short: $0.000 $7.8 4/26/2013
3/27/2013 $0.0453 Long: $0.000 Short: $0.000 $7.73 3/27/2013
2/27/2013 $0.0504 Long: $0.000 Short: $0.000 $7.66 2/27/2013
1/25/2013 $0.0428 Long: $0.000 Short: $0.000 $7.68 1/25/2013
12/31/2012 $0.0546 Long: $0.000 Short: $0.000 $7.55 12/31/2012
11/27/2012 $0.0569 Long: $0.000 Short: $0.000 $7.44 11/27/2012
10/26/2012 $0.0535 Long: $0.000 Short: $0.000 $7.45 10/26/2012
9/27/2012 $0.049 Long: $0.000 Short: $0.000 $7.43 9/27/2012
8/27/2012 $0.0451 Long: $0.000 Short: $0.000 $7.35 8/27/2012
7/27/2012 $0.0464 Long: $0.000 Short: $0.000 $7.28 7/27/2012
6/27/2012 $0.0449 Long: $0.000 Short: $0.000 $7.2 6/27/2012
5/25/2012 $0.0443 Long: $0.000 Short: $0.000 $7.14 5/25/2012
4/27/2012 $0.0557 Long: $0.000 Short: $0.000 $7.24 4/27/2012
3/27/2012 $0.0439 Long: $0.000 Short: $0.000 $7.2 3/27/2012
2/27/2012 $0.0597 Long: $0.000 Short: $0.000 $7.16 2/27/2012
1/27/2012 $0.0435 Long: $0.000 Short: $0.000 $7.04 1/27/2012

*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.

12-Month Trailing Dist. Yield as of 11/30/2016

NAV 7.31%
With Sales Charge 7.31%

Annualized 30-Day SEC Yield as of 11/30/2016

Subsidized - NAV 8.34%
Unsubsidized - NAV 8.34%

Portfolio

Top 10 Holdings as a % of net assets 11/30/2016

Misys plc and Magic Newco LLC, 12.0%, 6/12/2019 2.82%
Laureate Education, Inc., 10.0%, 9/1/2019 2.25%
Altice S.A., 7.8%, 5/15/2022 1.41%
Onex USI Acquisition Corp., 7.8%, 1/15/2021 1.40%
Jo-Ann Stores Holdings, Inc., 9.8%, 10/15/2019 1.36%
Kronos Acquisition Holdings, Inc., 9.0%, 8/15/2023 1.36%
New Cotai LLC and New Cotai Capital Corp., 10.6%, 5/1/2019 1.23%
Patriot Merger Corp., 9.0%, 7/15/2021 1.23%
Balboa Merger Sub, Inc., 11.4%, 12/1/2021 1.22%
B-Corp Merger Sub, Inc., 8.3%, 6/1/2019 1.17%

Maturity
as a % of fixed income assets as of 10/31/2016

<1 Year 3.8%
1-5 Years 46.9%
5-10 Years 49.1%
10-20 Years 0.2%
>20 Years 0.0%
Average Maturity 3.94 years
Effective Duration 3.18 years

Fixed Income Country Allocation
as a % of bond holdings as of 11/30/2016

United States 83.0%
Canada 5.7%
Luxembourg 4.0%
Netherlands 2.2%
Macau 1.0%
France 1.0%
Australia 0.8%
United Kingdom 0.8%
Hong Kong 0.7%
Cayman Islands 0.6%
Barbados 0.1%
Austria 0.1%
China 0.1%

Quality
as a % of fixed income assets as of 11/30/2016

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.
NonRated 4.30%
BBB 1.70%
BB 14.20%
B 42.10%
CCC 36.60%
Below CCC 1.10%

Portfolio Composition
as a % of net assets as of 11/30/2016

Corporate Bonds 77.64%
Senior Loans 14.85%
Cash and Cash Equivalents 6.88%
Preferred Stock 0.28%
Domestic Common Stock 0.18%
Foreign Common Stock 0.17%

Documents

Select a document below to view or download.

Documents

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. 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. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. Loans (including loan assignments, loan participations and other loan instruments) carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loans 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 Fund's prospectus. Not all funds or fund classes 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

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.

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.

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).

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: 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.

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