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Ivy VIP Dividend Opportunities

  • $8.50 NAV as of 3/20/2018
  • ($0.02) / 0.20% Daily NAV Change
  • -0.95% YTD (NAV)


Dividend growth: A path to compound opportunities

Portfolio description
Seeks financially sound large-cap companies from a diverse mix of sectors that has the potential to pay solid dividends or are likely to increase dividends over a 3- to 5-year time horizon.
Management discipline
Focuses on dividend growth using fundamental analysis and rigorous screening.
Potential benefits
Offers equity diversification through a portfolio of companies with proven cash flows and exposure to stocks that have the potential to hold up better in an economic downturn than non-dividend-paying stocks. Diversification cannot ensure a profit or protect against loss in a declining market.

Morningstar Style Box

Source: Morningstar

Portfolio Management

Christopher J. Parker, CFA

  • Ivy Investment Management Company
  • 3 Years with Fund
  • 22 Years in Industry
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Chris Parker is co-portfolio manager of Ivy Global Equity Income Fund. He had been portfolio manager of Ivy Dividend Opportunities Fund from 2014 to 2018, when the fund merged into Ivy Global Equity Income Fund with Mr. Parker as co-portfolio manager. He has been portfolio manager of Ivy VIP Dividend Opportunities since 2014. Mr. Parker joined the organization in 2008 as an equity investment analyst. He was named assistant portfolio manager of Ivy and Ivy VIP Value Funds and of Ivy and Ivy VIP Small Cap Core Funds in 2010. He was portfolio manager of Ivy and Ivy VIP Small Cap Core Funds from 2011 to 2014. He was appointed assistant vice president in 2010 and vice president in 2011. Mr. Parker had been a private investment manager from 2006 through 2007. From 2001 through 2005 he was a vice president in the equity research department of Citigroup Asset Management. While in business school, Mr. Parker had internships at Brandes Investment Partners in San Diego and Harris Associates in Chicago. Mr. Parker graduated magna cum laude from Boston College, Wallace E. Carroll School of Management, with a BS in Finance in 1995. He earned an MBA with distinction, concentrations in Finance and Management/Strategy, from Northwestern University, Kellogg Graduate School of Management in 2001. While at Kellogg, Mr. Parker was an F.C. Austin Scholar. Mr. Parker is a CFA charterholder and a member of the CFA Institute.

Growth of a $10,000 Investment
through 2/28/2018

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 3/20/2018

Net Asset Value (NAV) $8.50
Daily NAV Change ($) ($0.02) 0.20%
Weekly NAV Change ($) $-0.15 -1.68%
Public Offering Price (POP) $8.50

Fund Facts

CUSIP 46600H505
Fund Code 865
Fund Type Domestic Equity
Fund Inception 11/20/2003
Class Inception 11/20/2003
Fiscal Year End December
Dividends Paid May
Fund Assets (as of 2/28/2018) $514.6 mil
Total Equity Holdings (as of 2/28/2018) 40
Total Holdings (as of 2/28/2018) 45
Portfolio Turnover Rate (as of 12/31/2017) 35%
Lipper Category Equity Income Funds
Morningstar Category Large Blend
Benchmark Russell 1000 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.

Monthly Rates of Return

Average Annual Total Returns as of 2/28/2018
(Returns for periods of less than 1-yr are not annualized)
Lipper Equity Income Funds -0.90% 9.76% 7.36% 10.99% 7.67% 6.76%
Fund at NAV -0.43% 10.21% 5.51% 10.05% 5.93% 7.37%
Russell 1000 TR USD 1.62% 16.70% 10.77% 14.56% 9.78% 8.93%

Quarterly Rates of Return

Average Annual Total Returns as of 12/31/2017
(Returns for periods of less than 1-yr are not annualized)
Lipper Equity Income Funds 15.23% 15.23% 8.22% 12.62% 6.88% 6.94%
Fund at NAV 15.56% 15.56% 6.58% 11.50% 5.04% 7.49%
Russell 1000 TR USD 21.69% 21.69% 11.23% 15.71% 8.59% 8.91%

Calendar Year Return

Class II 29.61 9.84 -2.06 6.95 15.56
Russell 1000 TR USD 33.11 13.24 0.92 12.05 21.69

Morningstar Ratings as of 2/28/2018 Morningstar Logo

Category: Large Blend
Ratings are based on risk-adjusted returns
Overall out of 1216
3 Year out of 1216
5 Year out of 1076
10 Year out of 805

Lipper Ranking through 2/28/2018 Lipper Logo

Category: Equity Income Funds
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 40/76 52
3 Year 62/73 84
5 Year 58/64 90
10 Year 49/53 91

Expense Ratios as of 4/28/2017

Net 1.01%
Gross 1.01%

3-Year Standard Deviation as of 2/28/2018

Russell 1000 TR USD 9.85

3-Year MPT* Statistics as of 2/28/2018

*Modern Portfolio Theory
Alpha -4.28
Beta 0.94
R-Squared 92.37
Sharpe Ratio 0.51
Capture Ratio Upside: 82.67%
Downside: 119.50%


Historical Prices Inception 11/20/2003

3/1/2018 $8.42 NO NO
3/2/2018 $8.44 NO NO
3/5/2018 $8.53 NO NO
3/6/2018 $8.55 NO NO
3/7/2018 $8.55 NO NO
3/8/2018 $8.58 NO NO
3/9/2018 $8.72 NO NO
3/12/2018 $8.69 NO NO
3/13/2018 $8.65 NO NO
3/14/2018 $8.58 NO NO
3/15/2018 $8.57 NO NO
3/16/2018 $8.58 NO NO
3/19/2018 $8.48 NO NO

Historical Distributions Inception 11/20/2003

5/17/2017 $0.1039 Long: $0.268 Short: $0.000 $7.66 5/17/2017
5/18/2016 $0.0974 Long: $0.437 Short: $0.000 $7.26 5/18/2016
5/20/2015 $0.1144 Long: $0.856 Short: $0.124 $8.19 5/20/2015
5/21/2014 $0.1074 Long: $0.657 Short: $0.064 $8.44 5/21/2014
5/22/2013 $0.1304 Long: $0.177 Short: $0.000 $8.04 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.


Top 10 Equity Holdings as a % of net assets 2/28/2018

JPMorgan Chase & Co. JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. 4.55%
United Technologies Corp. United Technologies Corp. engages in the provision of products and services to the building systems and aerospace industries worldwide. It operates through the following business segments: Otis; UTC Climate, Controls & Security; Pratt and Whitney; UTC Aerospace Systems; and Other. The company was founded in 1934 and is headquartered in Farmington, CT. 4.19%
Lockheed Martin Corp. Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. 4.14%
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. 4.06%
Pfizer, Inc. Pfizer Inc. (Pfizer) is a research-based, global biopharmaceutical company. The Company manages its operations through five segments: Primary Care; Specialty Care and Oncology; Established Products and Emerging Markets; Animal Health and Consumer Healthcare, and Nutrition. 4.01%
Intel Corp. Intel Corporation is a semiconductor chip maker, developing advanced integrated digital technology products, primarily integrated circuits, for industries, such as computing and communications. 3.82%
Suncor Energy, Inc. Suncor Energy Inc. operates as an integrated energy company. 3.61%
Johnson & Johnson Johnson & Johnson is a holding company. The Company, along with its subsidiaries, is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. 3.57%
Chevron Corp. Chevron Corp., through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. 3.56%
Dow Chemical Co. (The) The Dow Chemical Co. provides chemical, plastic and agricultural products and services to various consumer markets. It serves customers in countries around the world in markets such as food, transportation, health and medicine, personal care and construction. 3.51%

Total Portfolio Holdings

Updated quarterly, upon availability.

Market Capitalization
as a % of equity assets as of 2/28/2018

Large 98.3%
Medium 1.7%
Small 0.0%
Median Market Cap (as of 2/28/2018) $58.7 bil

Top 10 Industry Allocation
as a % of Equity Holdings as of 2/28/2018

Semiconductors 10.9%
Pharmaceuticals 10.0%
Aerospace & Defense 8.7%
Integrated Oil & Gas 7.5%
Diversified Chemicals 6.9%
Electrical Components & Equipment 5.1%
Other Diversified Financial Services 4.8%
Systems Software 4.3%
Regional Banks 3.5%
Diversified Banks 3.5%

Sector Allocation
as a % of equity assets as of 2/28/2018

Information Technology 19.73%
Industrials 16.45%
Financials 15.38%
Health Care 11.76%
Materials 9.75%
Consumer Staples 9.22%
Energy 7.51%
Consumer Discretionary 4.79%
Real Estate 3.31%
Utilities 2.10%

Portfolio Composition
as a % of net assets as of 2/28/2018

Domestic Common Stock 83.30%
Foreign Common Stock 12.17%
Cash and Cash Equivalents 4.53%

Equity Country Allocation
as a % of equity assets as of 2/28/2018

United States 87.3%
Canada 3.8%
Switzerland 2.7%
United Kingdom 2.5%
France 2.1%
Ireland 1.7%

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 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. The portfolio's emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform non-dividend paying stocks and the market as a whole over any period of time. In addition, there is no guarantee that the companies in which the portfolio invests will declare dividends in the future or that dividends, if declared, will remain at current levels or increase over time. The amount of any dividend the company may pay may fluctuate significantly. In addition, the value of dividend-paying common stocks can decline when interest rates rise as fixed-income investments become more attractive to investors. This risk may be greater due to the current period of historically low interest rates. The portfolio typically holds a limited number of stocks (generally 40 to 60). As a result, the appreciation or depreciation of any one security held by the portfolio will have a greater impact on the portfolio's net asset value than it would if the portfolio invested in a large number of securities. These and other risks are more fully described in the portfolio's prospectus. Not all funds or fund classes may be offered at all broker/dealers.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: Russell 1000 is an unmanaged index comprised of securities that represent the stock market. 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.

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.