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Ivy Advantus Bond Fund

  • $10.77 NAV as of 11/17/2017
  • ($0.01) / 0.09% Daily NAV Change
  • 5.16% YTD (NAV)

Summary

Credit investing for potential portfolio income

Credit quality
Holds primarily investment-grade securities, which may be attractive for those concerned about credit risk.
Diversification
A portfolio of corporate, government and mortgage-backed securities that seeks to provide income through monthly distributions.
Experienced management
Subadvised by Advantus Capital Management, a firm that specializes in income-oriented strategies with an investment heritage dating back to 1880.

Morningstar Style Box

MOD
Medium
Source: Morningstar

Portfolio Management

David Land, CFA

  • Advantus Capital Management (Sub-adviser)
  • 12 Years with Fund
  • 27 Years in Industry
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David Land has been responsible for Ivy Advantus Bond Fund since April, 2005. Mr. Land was senior analyst at AXA Investment Managers North America, Inc. from August 2003 to April 2004.

Thomas Houghton, CFA

  • Advantus Capital Management (Sub-adviser)
  • 12 Years with Fund
  • 24 Years in Industry
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Thomas Houghton has been responsible for the Ivy Advantus Bond Fund since April 2005. He's served as vice president and portfolio manager with Advantus Capital since August 2003.

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

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.

Documents

Perspectives

36418_IPP-IBOAX-07_Ivy Advantus Bond Fund Portfolio Perspectives Banner 900x450
  • Ivy Advantus Bond Fund
  • November 15, 2017

A micro view in a macro world

With so much happening daily in the markets and around the world, it’s easy to focus on the big picture. The portfolio managers for the Ivy Advantus Bond Fund tend to look a little closer.

Quarterly Fund Commentary

Daily Prices as of 11/17/2017

Net Asset Value (NAV) $10.77
Daily NAV Change ($) ($0.01) 0.09%
Weekly NAV Change ($) $0.02 0.19%
Public Offering Price (POP) $10.77

Fund Facts

Ticker Symbol IVBIX
CUSIP 465897775
Fund Code 485
Fund Type Fixed Income Funds
Fund Inception 8/14/1987
Class Inception 4/2/2007
Fiscal Year End March
Dividends Paid Daily, Paid Monthly
Fund Assets (as of 10/31/2017) $955.7 mil
Total Holdings (as of 10/31/2017) 500
Portfolio Turnover Rate (as of 3/31/2017) 190%
Lipper Category Corporate Debt Funds A Rated
Morningstar Category Intermediate-Term Bond
Benchmark Bloomberg Barclays US Agg Bond 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 I shares are sold without any front-end sales load or contingent deferred sales charges.

Monthly Rates of Return

Average Annual Total Returns as of 10/31/2017
(Returns for periods of less than 1-yr are not annualized)
 
Bloomberg Barclays US Agg Bond TR USD 3.20% 0.90% 2.40% 2.04% 4.19% 4.26%
Lipper Corporate Debt Funds A Rated 4.67% 2.15% 3.02% 2.63% 4.67% 4.55%
Fund at NAV 5.01% 3.10% 3.31% 3.06% 4.20% 4.01%

Quarterly Rates of Return

Average Annual Total Returns as of 9/30/2017
(Returns for periods of less than 1-yr are not annualized)
 
Bloomberg Barclays US Agg Bond TR USD 3.14% 0.07% 2.71% 2.06% 4.27% 4.29%
Lipper Corporate Debt Funds A Rated 4.42% 0.91% 3.26% 2.73% 4.73% 4.56%
Fund at NAV 4.73% 2.30% 3.52% 3.09% 4.18% 4.02%

Calendar Year Return

  2012
Bloomberg Barclays US Agg Bond TR USD 4.21 -2.02 5.97 0.55 2.65
Class I 7.33 -0.65 6.22 -0.01 4.54

Morningstar Ratings as of 10/31/2017 Morningstar Logo

Category: Intermediate-Term Bond
Ratings are based on risk-adjusted returns
Overall out of 854
3 Year out of 854
5 Year out of 772
10 Year out of 548

Lipper Ranking through 10/31/2017 Lipper Logo

Category: Corporate Debt Funds A Rated
 
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 8/46 18
3 Year 14/45 31
5 Year 13/39 33
10 Year 18/33 53

Expense Ratios as of 7/5/2017

Net 0.54%
Gross 0.74%

5-Year Standard Deviation as of 10/31/2017

Bloomberg Barclays US Agg Bond TR USD 2.85

5-Year MPT* Statistics as of 10/31/2017

*Modern Portfolio Theory
Alpha 1.02
Beta 0.99
R-Squared 91.86
Sharpe Ratio 0.97
Capture Ratio Upside: 113.98%
Downside: 88.52%

Distributions

Historical Prices Inception 4/2/2007

11/1/2017 $10.78 NO NO
11/2/2017 $10.79 NO NO
11/3/2017 $10.80 NO NO
11/6/2017 $10.81 NO NO
11/7/2017 $10.81 NO NO
11/8/2017 $10.80 NO NO
11/9/2017 $10.79 NO NO
11/10/2017 $10.75 NO NO
11/13/2017 $10.75 NO NO
11/14/2017 $10.76 NO NO
11/15/2017 $10.77 NO NO
11/16/2017 $10.76 NO NO
11/17/2017 $10.77 NO NO

Historical Distributions Inception 4/2/2007

10/27/2017 $0.029 Long: $0.000 Short: $0.000 $10.75 10/27/2017
9/27/2017 $0.0295 Long: $0.000 Short: $0.000 $10.77 9/27/2017
8/25/2017 $0.0279 Long: $0.000 Short: $0.000 $10.82 8/25/2017
7/27/2017 $0.0274 Long: $0.000 Short: $0.000 $10.76 7/27/2017
6/27/2017 $0.0293 Long: $0.000 Short: $0.000 $10.77 6/27/2017
5/26/2017 $0.0319 Long: $0.000 Short: $0.000 $10.73 5/26/2017
4/27/2017 $0.0284 Long: $0.000 Short: $0.000 $10.68 4/27/2017
3/27/2017 $0.0254 Long: $0.000 Short: $0.000 $10.62 3/27/2017
2/27/2017 $0.0283 Long: $0.000 Short: $0.000 $10.64 2/27/2017
1/27/2017 $0.0239 Long: $0.000 Short: $0.000 $10.56 1/27/2017
12/30/2016 $0.0315 Long: $0.000 Short: $0.000 $10.53 12/30/2016
11/25/2016 $0.0254 Long: $0.000 Short: $0.000 $10.51 11/25/2016
10/27/2016 $0.0232 Long: $0.000 Short: $0.000 $10.78 10/27/2016
9/27/2016 $0.0254 Long: $0.000 Short: $0.000 $10.87 9/27/2016
8/26/2016 $0.0253 Long: $0.000 Short: $0.000 $10.84 8/26/2016
7/27/2016 $0.0231 Long: $0.000 Short: $0.000 $10.84 7/27/2016
6/27/2016 $0.0217 Long: $0.000 Short: $0.000 $10.75 6/27/2016
5/27/2016 $0.0271 Long: $0.000 Short: $0.000 $10.59 5/27/2016
4/27/2016 $0.0241 Long: $0.000 Short: $0.000 $10.56 4/27/2016
3/24/2016 $0.0199 Long: $0.000 Short: $0.000 $10.48 3/24/2016
2/26/2016 $0.0233 Long: $0.000 Short: $0.000 $10.43 2/26/2016
1/27/2016 $0.0183 Long: $0.000 Short: $0.000 $10.39 1/27/2016
12/31/2015 $0.0287 Long: $0.000 Short: $0.000 $10.35 12/31/2015
11/27/2015 $0.0293 Long: $0.000 Short: $0.000 $10.44 11/27/2015
10/27/2015 $0.0239 Long: $0.000 Short: $0.000 $10.55 10/27/2015
9/25/2015 $0.0242 Long: $0.000 Short: $0.000 $10.51 9/25/2015
8/27/2015 $0.0246 Long: $0.000 Short: $0.000 $10.51 8/27/2015
7/27/2015 $0.0221 Long: $0.000 Short: $0.000 $10.57 7/27/2015
6/26/2015 $0.0254 Long: $0.000 Short: $0.000 $10.51 6/26/2015
5/27/2015 $0.0245 Long: $0.000 Short: $0.000 $10.69 5/27/2015
4/27/2015 $0.0227 Long: $0.000 Short: $0.000 $10.79 4/27/2015
3/27/2015 $0.0215 Long: $0.000 Short: $0.000 $10.76 3/27/2015
2/27/2015 $0.0268 Long: $0.000 Short: $0.000 $10.76 2/27/2015
1/27/2015 $0.0196 Long: $0.000 Short: $0.000 $10.78 1/27/2015
12/31/2014 $0.0261 Long: $0.000 Short: $0.000 $10.64 12/31/2014
11/26/2014 $0.0239 Long: $0.000 Short: $0.000 $10.65 11/26/2014
10/27/2014 $0.0224 Long: $0.000 Short: $0.000 $10.66 10/27/2014
9/26/2014 $0.0255 Long: $0.000 Short: $0.000 $10.56 9/26/2014
8/27/2014 $0.0252 Long: $0.000 Short: $0.000 $10.67 8/27/2014
7/25/2014 $0.0221 Long: $0.000 Short: $0.000 $10.64 7/25/2014
6/27/2014 $0.0281 Long: $0.000 Short: $0.000 $10.64 6/27/2014
5/27/2014 $0.0247 Long: $0.000 Short: $0.000 $10.62 5/27/2014
4/25/2014 $0.0262 Long: $0.000 Short: $0.000 $10.52 4/25/2014
3/27/2014 $0.0232 Long: $0.000 Short: $0.000 $10.47 3/27/2014
2/27/2014 $0.0277 Long: $0.000 Short: $0.000 $10.49 2/27/2014
1/27/2014 $0.0201 Long: $0.000 Short: $0.000 $10.4 1/27/2014
12/31/2013 $0.0263 Long: $0.000 Short: $0.000 $10.3 12/31/2013
11/27/2013 $0.0268 Long: $0.000 Short: $0.000 $10.38 11/27/2013
10/25/2013 $0.0239 Long: $0.000 Short: $0.000 $10.42 10/25/2013
9/27/2013 $0.0359 Long: $0.000 Short: $0.000 $10.33 9/27/2013
8/27/2013 $0.0272 Long: $0.000 Short: $0.000 $10.27 8/27/2013
7/26/2013 $0.028 Long: $0.000 Short: $0.000 $10.37 7/26/2013
6/27/2013 $0.0299 Long: $0.000 Short: $0.000 $10.35 6/27/2013
5/24/2013 $0.0273 Long: $0.000 Short: $0.000 $10.69 5/24/2013
4/26/2013 $0.0312 Long: $0.000 Short: $0.000 $10.8 4/26/2013
3/27/2013 $0.0297 Long: $0.000 Short: $0.000 $10.71 3/27/2013
2/27/2013 $0.0317 Long: $0.000 Short: $0.000 $10.69 2/27/2013
1/25/2013 $0.0237 Long: $0.000 Short: $0.000 $10.68 1/25/2013

*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 10/31/2017

NAV 3.14%
With Sales Charge 3.14%

Annualized 30-Day SEC Yield as of 10/31/2017

Subsidized - NAV 2.90%
Unsubsidized - NAV 2.71%

Portfolio

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

U.S. 5 Year Treasury Note, 12/4/2017 4.59%
U.S. Treasury Bonds, 3.0%, 5/15/2047 2.31%
U.S. Treasury Notes, 2.1%, 9/30/2024 1.30%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates, 3.5%, 11/1/2041 1.05%
Chubb Corp. (The), 3.6%, 4/15/2037 1.03%
PPL Capital Funding, Inc. (GTD by PPL Corp.) (3-Month LIB, 4.0%, 3/30/2067 1.03%
BNSF Funding Trust I, 6.6%, 12/15/2055 1.00%
Capital One Bank USA N.A., 2.1%, 9/13/2019 0.97%
U.S. Treasury Notes, 1.9%, 8/31/2024 0.92%
UBS Commercial Mortgage Trust, Series 2017-C1, Class AS, 3.7%, 6/15/2050 0.85%

Total Portfolio Holdings

Updated quarterly, upon availability.

Maturity
as a % of fixed income assets as of 9/30/2017

<1 Year 3.3%
1-5 Years 32.9%
5-10 Years 39.5%
10-20 Years 4.3%
>20 Years 19.9%
Average Maturity 11.72 years
Effective Duration 5.67 years

Fixed Income Country Allocation
as a % of bond holdings as of 10/31/2017

United States 98.6%
Canada 0.9%
United Kingdom 0.4%
Australia 0.1%
Cayman Islands 0.0%

Quality
as a % of fixed income assets as of 10/31/2017

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 31.90%
NonRated 2.60%
AAA 5.50%
AA 4.90%
A 10.20%
BBB 34.50%
BB 10.20%
B 0.10%
CCC 0.10%
Below CCC 0.00%

Portfolio Composition
as a % of net assets as of 10/31/2017

Corporate Bonds 40.12%
Government Bonds 30.29%
Asset-Backed Securities 14.87%
Mortgage-Backed Securities 8.74%
Other Financial Instruments 4.59%
Revenue Bonds 0.89%
Preferred Stock 0.76%
Cash and Cash Equivalents -0.26%

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 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. 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.

Index Description: The Bloomberg Barclays U.S. Aggregate Bond TR USD Index - A market capitalization-weighted index, representing most U.S. traded investment grade bonds. It is not possible to invest directly in an index.

The Advantus Bond Fund merged into the Ivy Bond Fund on Dec. 8, 2003. The performance shown for periods prior to this date is that of the Advantus Bond Fund Class A shares, restated to reflect current sales charges applicable to Ivy Bond Fund Class A shares. Performance has not been restated to reflect the fees and expenses applicable to the Ivy Bond 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.

The Ivy Mortgage Securities Fund merged into the Ivy Bond Fund on Jan. 21, 2011, and the merged fund will maintain the Ivy Bond Fund name.

Fee Waiver and/or Expense Reimbursement: Through July 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 for the Fund’s Class E shares at 1.05%. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Board of Trustees.

Fee Waiver and/or Expense Reimbursement: Through July 31, 2018, IICO, IDI and/or WISC 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) as follows: Class I shares and Class N shares at 0.54%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees.

Fee Waiver and/or Expense Reimbursement: Through July 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 of Trustees.

The Ivy Bond Fund was renamed Ivy Advantus Bond Fund on April 3, 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.

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).

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.

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.

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