Waddell & Reed

Fund Detail

Ivy Balanced Fund
Class A Shares

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Fund Facts
Ticker Symbol IBNAX
CUSIP 465898625
Fund Code 644
Fund Type Specialty Funds
Fund Inception 11/16/1987
Class Inception 11/16/1987
Fiscal Year End March
Dividends Paid March, June, September, December
Fund Assets (as of 10/31/2019) $2.5 bil
Total Equity Holdings (as of 10/31/2019) 50
Total Holdings (as of 10/31/2019) 180
Portfolio Turnover Rate (as of 3/31/2019) 53%
Lipper Category Mixed-Asset Target Alloc Growth Funds
Morningstar Category Allocation--50% to 70% Equity
Benchmarks S&P 500 TR USD
Bloomberg Barclays US Govt/Credit TR USD
Daily Prices
as of 11/11/2019
Net Asset Value (NAV) $25.30
NAV Change ($) ($0.06)
NAV Change (%) -0.24%
Weekly NAV Change ($) $0.08
Weekly NAV Change (%) 0.32%
Public Offering Price (POP) $26.84
Historical Prices & Distributions
Please select a date
Fund Description

Seeking growth and income while managing risk


Straightforward approach
A balanced strategy that generally invests at least 50% of its assets in equities and at least 30% in fixed-income securities.
Durable quality
The Fund is predicated on building a portfolio of companies with resilient business models and above-average profitability that has the potential to persist over time.
Risk-managed portfolio
The equity portion of the Fund typically holds a limited number of holdings (generally 45–55), while the fixed-income portion emphasizes a portfolio of either U.S. government securities or investment-grade corporate bonds.
Morningstar Style Box
Source: Morningstar
Returns and Expenses

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, if it had, performance shown would be lower. Class A shares, including sales charges, reflects the maximum applicable front-end sales load.

Monthly Rates of Return
(Returns for periods of less than 1-yr are not annualized)
Average Annual Total Returns
as of 10/31/2019
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV 16.01% 11.22% 8.25% 5.26% 8.91% 7.71%
Fund with 5.75% sales charge 9.33% 4.82% 6.14% 4.01% 8.26% 7.51%
S&P 500 TR USD 23.16% 14.33% 14.91% 10.78% 13.70% N/A
Bloomberg Barclays US Govt/Credit TR USD 10.03% 12.61% 3.59% 3.46% 3.94% N/A
Lipper Mixed-Asset Target Alloc Growth Funds 15.71% 10.47% 8.75% 5.88% 8.47% 9.09%
Quarterly Rates of Return
(Returns for periods of less than 1-yr are not annualized)
Average Annual Total Returns
as of 9/30/2019
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV 14.24% 3.77% 7.00% 5.21% 8.53% 7.68%
Fund with 5.75% sales charge 7.65% -2.19% 4.91% 3.97% 7.89% 7.48%
S&P 500 TR USD 20.55% 4.25% 13.39% 10.84% 13.24% N/A
Bloomberg Barclays US Govt/Credit TR USD 9.72% 11.32% 3.16% 3.61% 3.94% N/A
Lipper Mixed-Asset Target Alloc Growth Funds 13.99% 2.63% 7.62% 5.88% 8.13% 9.07%
Expense Ratios
as of 7/31/2019
Net 1.09%
Gross 1.09%
12-Month Trailing Distribution Yield
as of 10/31/2019
NAV 1.26%
With sales charge 1.19%
Annualized 30-Day SEC Yield
as of 10/31/2019
Subsidized 0.83%
Unsubsidized 0.83%
Growth of a $10,000 Investment
through 10/31/2019
 Balanced A
 S&P 500 TR USD
 Bloomberg Barclays US Govt/Credit TR USD

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.

Ratings and Rankings
Lipper Rankings
as of 10/31/2019
Category: Mixed-Asset Target Alloc Growth Funds
  Rank Percentile
1 Year 189 / 462 41
3 Year 297 / 433 69
5 Year 282 / 389 73
10 Year 103 / 291 36

Rankings are based on average annual total returns, but do not consider sales charges.

Morningstar Ratings
as of 10/31/2019
Category: Allocation--50% to 70% Equity
Overall (out of 646 Allocation--50% to 70% Equity)
3 Year (out of 646 Allocation--50% to 70% Equity)
5 Year (out of 572 Allocation--50% to 70% Equity)
10 Year (out of 418 Allocation--50% to 70% Equity)

Ratings are based on risk-adjusted returns.

Holdings
Portfolio Composition
(as a % of net assets as of 10/31/2019)
Domestic Common Stock 61.96%
Government Bonds 21.90%
Corporate Bonds 11.44%
Foreign Common Stock 3.57%
Cash and Cash Equivalents 0.57%
Senior Loans 0.41%
Asset-Backed Securities 0.15%
Sector Allocation
(as a % of equity holdings as of 10/31/2019)
Information Technology 24.6%
Financials 14.5%
Industrials 13.7%
Communication Services 10.2%
Health Care 10.0%
Consumer Discretionary 8.9%
Consumer Staples 6.6%
Energy 6.5%
Materials 5.1%
Equity Country Allocation
(as a % of equity holdings as of 10/31/2019)
United States 94.6%
United Kingdom 2.1%
Germany 1.5%
Canada 1.4%
Netherlands 0.4%
Fixed Income Country Allocation
(as a % of bond holdings as of 10/31/2019)
United States 95.2%
United Kingdom 2.6%
Japan 0.9%
Ireland 0.8%
Guernsey 0.5%
Top 10 Equity Holdings
(as a % of net assets as of 10/31/2019)
An American global supplier of paints, coatings, optical products, specialty materials, chemicals, glass and fiberglass.PPG Industries, Inc. 2.02%
Microsoft Corporation is a multinational computer technology corporation that develops, manufactures, licenses and supports a wide range of software products for computing devices.Microsoft Corp. 1.94%
Qualcomm Incorporated is an American multinational semiconductor and telecommunications equipment company that designs and markets wireless telecommunications products and services. It derives most of its revenue from chipmaking and the bulk of its profit from patent licensing businesses. QUALCOMM, Inc. 1.90%
Zimmer Biomet is a publicly traded medical device company. It was founded in 1927 to produce aluminum splints. The firm is headquartered in Warsaw, Indiana, where it is part of the medical devices business cluster. Zimmer Holdings, Inc. 1.86%
Union Pacific Corporation owns the largest railroad in the U.S. It's diversified business mix includes agricultural products, automotive, chemicals, energy, industrial products and intermodal.Union Pacific Corp. 1.86%
Autodesk, Inc. supplies PC software and multimedia tools. The company's two-dimensional and three-dimensional products are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications. Autodesk's software products are sold worldwide through a network of dealers and distributors.Autodesk, Inc. 1.86%
Las Vegas Sands Corp. (LVSC), a global developer of destination properties (integrated resorts), features accommodations, gaming, entertainment, retail, convention and exhibition facilities, celebrity chef restaurant, etc. The company operates in 3 geographic areas: Macao, Singapore, United States.Las Vegas Sands, Inc. 1.81%
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. Apple, Inc. 1.80%
Philip Morris International Inc manufactures and sells cigarettes and other tobacco products in markets outside of the United States of America. The company's portfolio comprises international and local brands.Philip Morris International, Inc. 1.73%
The Company has businesses engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing its products and services nationally and others in its markets located in Pennsylvania, Virginia, Missouri, Wisconsin and Georgia. It also provides products and services internationally. PNC Financial Services Group, Inc. (The) 1.72%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 9/30/2019)
Quality
(as a % of bond holdings as of 10/31/2019)
Government Bonds 64.6 %
AAA 1.4 %
AA 3.0 %
A 7.2 %
BBB 17.9 %
BB 4.7 %
CCC 1.2 %

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Maturity
(as a % of bond holdings as of 10/31/2019)
<1 Year 4.9 %
1-5 Years 39.9 %
5-10 Years 30.6 %
10-20 Years 3.2 %
>20 Years 21.5 %
Average Maturity 9.59 years
Effective Duration 6.67 years

Average maturity and effective duration include bonds, cash and cash equivalents.

Top 10 Industry Allocation
(as a % of equity holdings as of 10/31/2019)
Semiconductors 9.6%
Interactive Media & Services 4.9%
Diversified Banks 3.6%
Pharmaceuticals 3.4%
Specialty Chemicals 3.1%
Integrated Oil & Gas 3.1%
Systems Software 3.0%
Health Care Equipment 2.8%
Application Software 2.8%
Railroads 2.8%
Portfolio Management
Manager Name Company Name Years in Industry Years with Fund
Matthew Hekman is co-portfolio manager of Ivy Balanced Fund and Ivy VIP Balanced. He was named portfolio manager of the funds in 2014 and assumed co-portfolio manager responsibilities in 2017. Mr. Hekman joined the organization in 2003 as a performance analyst and moved to the Investment Management Division as an equity investment analyst in 2005. He was a member of the Large Cap Growth team from 2009 to 2011, during which time he was named assistant portfolio manager and appointed assistant vice president. He transitioned to serve in the same capacity as assistant portfolio manager and assistant vice president of the Large Cap Value team from 2011 to 2014. He was appointed vice president in 2014 and senior vice president in 2019. Prior to joining the firm, Mr. Hekman was a manager of custody administration and investment accounting with State Street Corporation from 1998 to 2003. During his tenure at State Street, he acted as a liaison between custody administration, accounting, and investment management personnel. Mr. Hekman graduated from Dordt College in 1998 with a BA in Business Administration. He earned an MBA with an emphasis in Finance from the University of Kansas in 2003. Mr. Hekman is a member of the CFA Society Kansas City.Matthew A. Hekman Ivy Investment Management Company 21 5
Mark Beischel is portfolio manager of Ivy Global Bond Fund and Ivy VIP Global Bond. He has been a portfolio manager of Ivy Global Bond since 2008 and of Ivy VIP Global Bond since 2010. He had been a portfolio manager of the former Waddell & Reed Advisors Global Bond Fund since 2002. He has held oversight of allocation levels and management of all allocation sleeves for Ivy Apollo Strategic Income Fund and co-oversight of allocation levels and management of all allocation sleeves for Ivy Apollo Multi- Asset Income Fund since 2015. On an interim basis as of April 2018, Mr. Beischel is co-portfolio manager of Ivy Bond Fund, Ivy Government Securities Fund, Ivy Crossover Credit Fund, Ivy Balanced Fund, Ivy VIP Bond and Ivy VIP Balanced. Mr. Beischel joined the organization in 1998 specializing in taxable investment-grade corporate credit analysis and emerging market credit analysis. He was appointed assistant vice president and named an assistant portfolio manager in 2000. He was appointed vice president in 2002 and senior vice president in 2006. Mr. Beischel was appointed Global Director of Fixed Income in 2011. Mr. Beischel graduated in 1991 with a BBA in Management from the University of Wisconsin-Eau Claire. He earned an MBA with an emphasis in Finance from the University of Denver in 1993. Mr. Beischel is a CFA charterholder. He is a member of the CFA Institute and the CFA Society of Kansas City.Mark G. Beischel, CFA Ivy Investment Management Company 26 1
Susan Regan is portfolio manager of Ivy Limited-Term Bond Fund, Ivy VIP Limited-Term Bond and fixed income institutional accounts. She was named co-portfolio manager of the funds in 2014 and has held sole portfolio manager responsibilities since 2015. She was named co-portfolio manager of Ivy Government Securities Fund in 2018. On an interim basis as of April 2018, Ms. Regan is co-portfolio manager of Ivy Bond Fund, Ivy Crossover Credit Fund, Ivy Balanced Fund, Ivy VIP Bond and Ivy VIP Balanced. Ms. Regan joined the organization in 2007 as a fixed income investment analyst and trader. She was appointed assistant vice president and named assistant portfolio manager in 2010. Ms. Regan had been co-portfolio manager of Ivy VIP Bond, and the former Waddell & Reed Advisors Bond Fund and Waddell & Reed Advisors Government Securities Fund from 2014 through April 2015. She was appointed vice president in 2014 and senior vice president in 2017. Prior to joining the firm, Ms. Regan was employed by Commerce Bank from 1988 to 2007, where she gained experience trading governments, agencies and mortgage-backed securities. Ms. Regan earned a BA in Economics in 1984 and an MA in Economics in 1985 from the University of Missouri-Columbia.Susan K. Regan Ivy Investment Management Company 32 1

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. The Fund may allocate its assets among different asset classes of varying correlation around the globe. The Fund’s Equity Sleeve typically holds a limited number of stocks (generally 50 to 70). As a result, the appreciation or depreciation of any one security held by the Fund may have a greater impact on the Fund’s NAV than it would if it invested in a larger number of securities. International investing involves additional risks, including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. The Fund’s Diversifying Sleeve includes fixed-income securities, that are subject to interest-rate risk and, as such, the net asset value of the Fund 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. 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. The Fund may seek to hedge market risk via the use of derivative instruments. Such investments involve additional risks. Investing in commodities is generally considered speculative because of the significant potential for investment loss due to cyclical economic conditions, sudden political events, and adverse international monetary policies. Markets for commodities are likely to be volatile and the Fund may pay more to store and accurately value its commodity holdings than it does with the Fund’s other holdings. 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.

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.

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

Index Description: Bloomberg Barclays US Govt/Credit TR USD - The Barclays U.S. Government/Credit Index measures the performance of U.S. dollar-denominated United States Treasuries, government-related, and investment-grade U.S. corporate securities that have a remaining maturity of greater than or equal to one year. In addition, the securities have $250 million or more of outstanding face value and are fixed-rate and non-convertible securities. It is not possible to invest directly in an index.

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

Fee Waiver and/or Expense Reimbursement: Through July 31, 2020, 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 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 without the consent of the Board of Trustees (Board).

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.

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. © 2019 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.

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

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.

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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