Waddell & Reed

Fund Detail

Ivy Crossover Credit Fund
Class A Shares

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Fund Facts
Ticker Symbol ICKAX
CUSIP 46600B730
Fund Code 679
Fund Type Fixed Income Funds
Fund Inception 4/3/2017
Class Inception 4/3/2017
Fiscal Year End September
Dividends Paid Monthly
Fund Assets (as of 10/31/2019) $44.2 mil
Total Holdings (as of 10/31/2019) 65
Portfolio Turnover Rate (as of 9/30/2018) 85%
Lipper Category Corporate Debt Funds BBB-Rated
Morningstar Category Corporate Bond
Benchmarks Bloomberg Barclays U.S. Corporate Bond Index
Daily Prices
as of 11/11/2019
Net Asset Value (NAV) $10.46
NAV Change ($) $0.01
NAV Change (%) 0.10%
Weekly NAV Change ($) ($0.07)
Weekly NAV Change (%) -0.66%
Public Offering Price (POP) $11.10
Historical Prices & Distributions
Please select a date
Fund Description

The Ivy Crossover Credit Fund looks to provide total return through a combination of high current income and capital appreciation.


Crossover potential
A "crossover credit" strategy is designed to provide exposure to both investment grade and non-investment grade fixed income securities. "Crossover" debt generally refers to bonds rated at or near the point where the lower end of investment grade debt and the higher end of high yield debt meet.
Ratings
Investment grade bonds include bonds rated BBB- or higher. Non-investment grade debt securities, commonly called "high yield" or "junk" bonds, include bonds rated BB+ or lower.
Experienced management
The team has more than 50 years of experience in managing various types of credit portfolios.
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 15.02% 15.40% N/A N/A N/A 5.57%
Fund with 5.75% sales charge 8.44% 8.75% N/A N/A N/A 3.17%
Bloomberg Barclays U.S. Corporate Bond Index 13.89% 15.37% 5.00% 4.64% 5.55% 6.18%
Lipper Corporate Debt Funds BBB-Rated 12.72% 13.85% 4.40% 4.03% 5.24% 5.32%
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 14.11% 13.10% N/A N/A N/A 5.43%
Fund with 5.75% sales charge 7.58% 6.57% N/A N/A N/A 2.95%
Bloomberg Barclays U.S. Corporate Bond Index 13.20% 13.00% 4.50% 4.72% 5.56% 6.14%
Lipper Corporate Debt Funds BBB-Rated 12.17% 11.66% 3.97% 4.13% 5.28% 5.29%
Expense Ratios
as of 1/31/2019
Net 0.90%
Gross 1.19%
12-Month Trailing Distribution Yield
as of 10/31/2019
NAV 3.30%
With sales charge 3.11%
Annualized 30-Day SEC Yield
as of 10/31/2019
Subsidized 2.20%
Unsubsidized 2.10%
Growth of a $10,000 Investment
through 10/31/2019

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: Corporate Debt Funds BBB-Rated
  Rank Percentile
1 Year 56 / 271 21

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

Holdings
Portfolio Composition
(as a % of net assets as of 10/31/2019)
Corporate Bonds 94.81%
Cash and Cash Equivalents 4.61%
Asset-Backed Securities 0.58%
Quality
(as a % of bond holdings as of 10/31/2019)
A 1.2 %
BBB 95.4 %
BB 3.4 %

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 3.7 %
1-5 Years 18.4 %
5-10 Years 63.8 %
10-20 Years 2.0 %
>20 Years 12.2 %
Average Maturity 11.93 years
Effective Duration 6.95 years

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

Fixed Income Country Allocation
(as a % of bond holdings as of 10/31/2019)
United States 84.5%
United Kingdom 5.7%
Canada 3.2%
Spain 2.3%
Ireland 1.8%
Netherlands 1.3%
Denmark 1.2%
Top 10 Holdings
(as a % of net assets as of 10/31/2019)
Crown Castle International Corp., 4.8%, 5/15/2047 2.67%
CubeSmart L.P. (GTD by CubeSmart), 4.4%, 2/15/2029 2.52%
Keysight Technologies, Inc., 4.6%, 4/6/2027 2.52%
IHS Markit Ltd., 4.8%, 2/15/2025 2.49%
Motorola Solutions, Inc., 4.6%, 5/23/2029 2.49%
Bayer U.S. Finance II LLC, 4.4%, 12/15/2028 2.45%
L-3 Communications Corp., 3.9%, 12/15/2026 2.45%
Aon Corp. (GTD by Aon plc), 3.8%, 5/2/2029 2.44%
BAE Systems Holdings, Inc., 3.9%, 12/15/2025 2.41%
Huntington Ingalls Industries, Inc., 3.5%, 12/1/2027 2.37%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 9/30/2019)
Portfolio Management
Manager Name Company Name Years in Industry Years with Fund
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 MultiAsset Income Fund since 2015. Mr. Beischel has also served as co-portfolio manager of Ivy Corporate Bond Fund, Ivy Government Securities Fund, Ivy Crossover Credit Fund, Ivy Balanced Fund, Ivy VIP Corporate Bond and Ivy VIP Balanced since April 2018. 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
Ben Esty is co-portfolio manager of Ivy Crossover Credit Fund. He is assistant portfolio manager of Ivy Corporate Bond Fund and Ivy VIP Corporate Bond. Mr. Esty joined the organization in 2018 as vice president and portfolio manager. His experience in the industry is primarily with credit strategies, including high yield, loans, investment grade and convertible debt. Mr. Esty began his investment career at Citadel Investment Group in Chicago in 2001 as a credit analyst covering positions across the spectrum of distressed, high yield and investment grade debt as well as convertible bonds, equities and options. He joined Sandelman Partners in New York in 2005 as the head of research where he led efforts to standardize the investment process among analysts, developed analyst training programs and led the firm’s analyst recruitment efforts. He joined Eagle River Asset Management in New York in 2010 as a founding member of a startup credit long/short hedge fund with peak AUM of $140M. He joined Palmer Square Capital Management in Kansas City in 2014 where he was a partner and portfolio manager managing the firm’s long/short credit, high yield and investment grade bond portfolios. Mr. Esty graduated from the University of Pennsylvania in 2001 with a BA in Economics and International Relations, with Distinction in International Relations.Benjamin Esty Ivy Investment Management Company 18 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. Ms. Regan has also served as co-portfolio manager of Ivy Corporate Bond Fund, Ivy Crossover Credit Fund, Ivy Balanced Fund, Ivy VIP Corporate Bond and Ivy VIP Balanced since April 2018. 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. She was appointed vice president in 2014 and senior vice president in 2017. Prior to joining the firm, Ms. Regan traded governments, agencies and mortgage-backed securities for Commerce Bank from 1988 to 2007. 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.

The Bloomberg Barclays US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by US and non-US industrial, utility and financial issuers. The US Corporate Index is a component of the US Credit and US Aggregate Indices. The index was launched in July 1973, with index history backfilled to January 1, 1973. It is not possible to invest directly in an index.

Fee Waiver and/or Expense Reimbursement: Through January 31, 2020, 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 (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class A shares at 0.90% and Class I and Class N shares at 0.65%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees (Board). Certain common expenses applicable to all share classes also may be waived to cap total annual ordinary fund operating expenses, which may serve to reduce the expense ratio of certain share classes.

Fee Waiver and/or Expense Reimbursement: Through January 31, 2020, 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 N shares and Class Y shares do not exceed the total annual ordinary fund operating expenses of the Class I shares and Class A shares, respectively, 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.

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.

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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