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Ivy VIP Core Equity

  • $11.98 NAV as of 11/17/2017
  • ($-0.06) / -0.46% Daily NAV Change
  • 17.63% YTD (NAV)

Summary

Building a well-rounded portfolio

Strategy
Stock selection stems from uncovering multi-year earnings catalysts that appear underappreciated by the market in companies believed to have strong or strengthening competitive advantages.
Process
Concentrated portfolio of U.S. companies that generally invests across the valuation and large- to mid-cap spectrum opportunistically
Experienced management
Each portfolio manager has more than 15 years of industry experience. Both managers began their careers as research analysts covering a wide range of industries.

Asset Allocation

Placeholder Image for Asset Allocation

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Morningstar Style Box

Growth
Large
Source: Morningstar

Portfolio Management

Gus C. Zinn, CFA

  • Ivy Investment Management Company
  • 11 Years with Fund
  • 19 Years in Industry
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Gus Zinn is co-portfolio manager of the core equity product suite of mutual funds and institutional accounts. He was named coportfolio manager of the product suite in 2006. Mr. Zinn joined the organization in 1998 as an equity investment analyst. He was appointed assistant vice president in 2002. He was named assistant portfolio manager of Ivy Science and Technology Fund and Ivy VIP Science and Technology in 2003. He was appointed vice president in 2004 and senior vice president in 2009. Mr. Zinn graduated from the University of Wisconsin-Madison with a BBA in Finance in 1996 and a Masters in Finance in 1998. He had been affiliated with the Applied Security Analysis Program as one of a group of students selected to manage a $1.9 million portfolio. Mr. Zinn is a CFA charterholder. He is a member of the CFA Institute and the CFA Society of Kansas City.

Erik R. Becker, CFA

  • Ivy Investment Management Company
  • 11 Years with Fund
  • 19 Years in Industry
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Erik Becker is co-portfolio manager of the core equity product suite of mutual funds and institutional accounts. He was named co-portfolio manager of the product suite in 2006. Mr. Becker joined the organization in 1999 as an equity investment analyst. He was named assistant portfolio manager of Ivy Core Equity Fund and Ivy VIP Core Equity in 2003. He was appointed assistant vice president in 2004. He was appointed vice president in 2006 and senior vice president in 2009. Mr. Becker had previously been a teaching assistant with the University of Wisconsin-Madison. He taught undergraduate and graduate students in both introductory and advanced finance courses. He was affiliated with Nicholas Company, Inc. as a research analyst intern in 1998, where he developed buy and sell recommendations for equity securities, performed due diligence on existing holdings and interviewed management teams and analysts. Mr. Becker graduated from the University of Wisconsin-Madison with a BBA in Finance in 1997 and a Masters of Science in Finance in 1999. He was affiliated with the Applied Security Analysis Program as one of a group of students selected to manage a $1.9 million portfolio. Mr. Becker is a CFA charterholder. He is a member of the CFA Institute and the CFA Society of Kansas City.

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

Quarterly Fund Commentary

Daily Prices as of 11/17/2017

Net Asset Value (NAV) $11.98
Daily NAV Change ($) ($-0.06) -0.46%
Weekly NAV Change ($) $-0.03 -0.24%
Public Offering Price (POP) $11.98

Fund Facts

CUSIP 46600H406
Fund Code 857
Fund Type Domestic Equity
Fund Inception 7/16/1991
Class Inception 7/16/1991
Fiscal Year End December
Dividends Paid May
Fund Assets (as of 10/31/2017) $447.1 mil
Total Equity Holdings (as of 10/31/2017) 48
Total Holdings (as of 10/31/2017) 49
Portfolio Turnover Rate (as of 6/30/2017) 50%
Lipper Category Large-Cap Core Funds
Morningstar Category Large Growth
Benchmark S&P 500 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.

Monthly Rates of Return

Average Annual Total Returns as of 10/31/2017
(Returns for periods of less than 1-yr are not annualized)
 
Lipper Large-Cap Core Funds 15.56% 21.85% 9.13% 13.94% 6.49% 9.00%
S&P 500 TR USD 16.91% 23.63% 10.77% 15.18% 7.51% 9.75%
Fund at NAV 17.89% 20.66% 7.36% 12.83% 7.38% 9.55%

Quarterly Rates of Return

Average Annual Total Returns as of 9/30/2017
(Returns for periods of less than 1-yr are not annualized)
 
Fund at NAV 13.60% 13.36% 6.44% 11.46% 7.23% 9.42%
Lipper Large-Cap Core Funds 13.70% 17.67% 9.28% 13.20% 6.54% 8.88%
S&P 500 TR USD 14.24% 18.61% 10.81% 14.22% 7.44% 9.69%

Calendar Year Return

  2012
S&P 500 TR USD 16.00 32.39 13.69 1.38 11.96
Class II 18.60 33.51 9.68 -0.69 3.74

Morningstar Ratings as of 10/31/2017 Morningstar Logo

Category: Large Growth
Ratings are based on risk-adjusted returns
Overall out of 1233
3 Year out of 1233
5 Year out of 1107
10 Year out of 782

Lipper Ranking through 10/31/2017 Lipper Logo

Category: Large-Cap Core Funds
 
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 127/186 68
3 Year 156/179 87
5 Year 138/165 84
10 Year 23/128 18

Expense Ratios as of 4/28/2017

Net 0.95%
Gross 1.01%

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

S&P 500 TR USD 9.46

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

*Modern Portfolio Theory
Alpha -3.77
Beta 1.07
R-Squared 89.67
Sharpe Ratio 0.62
Capture Ratio Upside: 97.42%
Downside: 132.47%

Distributions

Historical Prices Inception 7/16/1991

11/1/2017 $12.00 NO NO
11/2/2017 $12.01 NO NO
11/3/2017 $12.10 NO NO
11/6/2017 $12.12 NO NO
11/7/2017 $12.10 NO NO
11/8/2017 $12.09 NO NO
11/9/2017 $12.00 NO NO
11/10/2017 $12.01 NO NO
11/13/2017 $12.00 NO NO
11/14/2017 $11.96 NO NO
11/15/2017 $11.89 NO NO
11/16/2017 $12.03 NO NO
11/17/2017 $11.98 NO NO

Historical Distributions Inception 7/16/1991

5/17/2017 $0.0506 Long: $0.458 Short: $0.000 $10.64 5/17/2017
5/18/2016 $0.0522 Long: $1.208 Short: $0.189 $10.17 5/18/2016
5/20/2015 $0.0506 Long: $2.059 Short: $0.309 $12.21 5/20/2015
5/21/2014 $0.0767 Long: $1.762 Short: $0.399 $13.1 5/21/2014
5/22/2013 $0.0766 Long: $1.045 Short: $0.083 $13.05 5/22/2013

*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.

Portfolio

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

Microsoft Corp. Microsoft Corporation is a multinational computer technology corporation that develops, manufactures, licenses and supports a wide range of software products for computing devices. 4.97%
Apple, Inc. Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions worldwide. 4.61%
Morgan Stanley Morgan Stanley, a bank holding company, provides diversified financial services worldwide. The company operates a global securities business which serves individual and institutional investors and investment banking clients. Morgan Stanley also operates a global asset management business. 3.16%
Alphabet, Inc., Class A Alphabet Inc through its subsidiary Google Inc is engaged in improving the ways people connect with information & products including Search, Android, YouTube, Apps, Maps & Ads. It also produces internet-connected home devices & provides internet services. 3.05%
PayPal, Inc. 2.94%
JPMorgan Chase & Co. JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. 2.92%
UnitedHealth Group, Inc. UnitedHealth Group is a diversified health and well-being company offering a spectrum of products and services serving consumers, employers, physicians, providers, hospitals and other caregivers. 2.92%
Applied Materials, Inc. Applied Materials, Inc. provides nanomanufacturing technology solutions for the semiconductor, flat panel display, solar, and related industries worldwide. 2.67%
Blackstone Group L.P. (The) 2.55%
Adobe Systems, Inc. Adobe Systems Incorporated operates as a diversified software company worldwide. It operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. 2.50%

Total Portfolio Holdings

Updated quarterly, upon availability.

Market Capitalization
as a % of equity assets as of 10/31/2017

Large 97.5%
Medium 2.5%
Small 0.0%
Median Market Cap (as of 10/31/2017) $78.6 bil

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

Data Processing & Outsourced Services 6.9%
Internet Software & Services 6.4%
Aerospace & Defense 5.4%
Other Diversified Financial Services 5.1%
Semiconductor Equipment 5.1%
Systems Software 5.0%
Investment Banking & Brokerage 4.9%
Managed Health Care 4.8%
Technology Hardware, Storage & Peripherals 4.6%
Semiconductors 4.6%

Sector Allocation
as a % of equity assets as of 10/31/2017

Information Technology 37.04%
Financials 16.82%
Health Care 11.19%
Industrials 10.48%
Consumer Staples 8.52%
Consumer Discretionary 7.78%
Energy 4.17%
Materials 4.00%

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

Domestic Common Stock 93.83%
Foreign Common Stock 5.73%
Cash and Cash Equivalents 0.44%

Equity Country Allocation
as a % of equity assets as of 10/31/2017

United States 94.2%
Netherlands 2.4%
France 2.0%
China 1.4%

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: Because the Portfolio is generally invested in a small number of stocks, the performance of any one security held by the Portfolio will have a greater impact than if the Portfolio were invested in a larger number of securities. Although larger companies tend to be less volatile than companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. The IVY VARIABLE INSURANCE PORTFOLIOSSM, 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 general public.

Index Description: S&P 500 - An unmanaged index of common stocks. It is not possible to invest directly in an index.

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.

Fee Waiver and/or Expense Reimbursement: Through April 30, 2018, Ivy Investment Management Company (IICO), the Portfolio's investment manager, Ivy Distributors, Inc. (IDI), the Portfolio's distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Portfolio'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 portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) for Class II shares at 0.95%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees.

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.