Waddell & Reed

Fund Detail

Ivy High Income Opportunities Fund

Fund Facts
Ticker Symbol IVH
CUSIP 465893105
Fund Code 991
Fund Type Closed End Funds
Fund Inception 5/29/2013
Fiscal Year End September
Dividends Paid Monthly
Fund Net Asset Value (as of 10/31/2019) $246.5 mil
Total Managed Assets (as of 10/31/2019) $358.5 mil
Total Holdings (as of 10/31/2019) 237
Portfolio Turnover Rate (as of 9/30/2018) 46%
Morningstar Category High Yield Bond
Leverage
(as of 10/31/2019)
Total Regulatory Leverage 31.24%
Effective Leverage 31.24%
Asset Coverage 320.07%

Average Leverage Costs
1mo 2.63%
3mo 2.78%
1yr 3.06%
Daily Prices
as of 11/11/2019
Net Asset Value (NAV) $14.87
Share Price $13.63
NAV Change ($) $0.01
NAV Change (%) 0.07%
Share Price Change($) $0.01
Share Price Change(%) 0.10%
Premium/Discount (%) -8.31%
Premium/Discount 52 wk avg (%) -11.25%
Share Price - 52 wk High (03/22/2019) $13.91
Share Price - 52 wk Low (12/20/2018) $11.68
NAV Price - 52 wk High ( 05/06/2019) $15.63
NAV Price - 52 wk Low (12/26/2018) $14.10
Premium/Discount 52 wk High (11/11/2019) -8.31%
Premium/Discount 52 wk Low (12/21/2018) -17.57%
Inception NAV $19.06
Inception Share Price $20.00
Shares Outstanding 16,567,088
Avg Daily Volume (in shares) - 3 Month 57,697
Historical Prices & Distributions
Please select a date
Fund Description

A research-based investment process.


Management discipline
The Fund manager believes that security selection through research of individual issuers is central to achieving potentially above-market returns.
Research base
Although there may be periodic environments where macroeconomic events and strategic exposures influence allocations, investment decisions about specific securities are based on fundamental credit research, valuations, the potential to exploit market inefficiencies and capital structure positioning.
Flexibility
The Fund invests primarily in a portfolio of high-yield corporate bonds of varying maturities and other fixed income securities, including first- and second-lien loans.
Morningstar Style Box
Source: Morningstar
Returns and Expenses

Performance data quoted represents past performance and are no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted.

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 12.82% 6.75% 8.07% 5.48% N/A 6.56%
Fund at SharePrice 19.65% 13.20% 8.09% 5.73% N/A 4.20%
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 13.35% 4.10% 8.54% 5.82% N/A 6.73%
Fund at SharePrice 20.80% 6.07% 8.23% 6.23% N/A 4.41%
Expense Ratios
as of 10/31/2019
Common Shares Total Funds
Management Fees 1.45% 1.00%
Interest Expenses 1.21% 0.83%
Other Expenses 0.15% 0.11%
Total 2.81% 1.94%
12-Month Trailing Distribution Yield
as of 10/31/2019
NAV 8.88%
Share Price 9.79%
Annualized 30-Day SEC Yield
as of 10/31/2019
Subsidized - Share Price 9.94%
Unsubsidized - Share Price 9.94%
Subsidized - NAV 9.00%
Unsubsidized - NAV 9.00%
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
Morningstar Ratings
as of 8/31/2018
Category: High Yield Bond
Overall (out of 35 High Yield Bond)
3 Year (out of 35 High Yield Bond)
5 Year (out of 33 High Yield Bond)

Ratings are based on risk-adjusted returns.

Holdings
Portfolio Composition
(as a % of net assets as of 10/31/2019)
Corporate Bonds 97.31%
Senior Loans 33.27%
Preferred Stock 1.32%
Foreign Common Stock 0.89%
Domestic Common Stock 0.24%
Cash and Cash Equivalents -33.03%
Quality
(as a % of bond holdings as of 10/31/2019)
NonRated 3.5 %
BB 9.8 %
B 56.3 %
CCC 29.2 %
Below 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.

Fixed Income Country Allocation
(as a % of bond holdings as of 10/31/2019)
United States 82.0%
Luxembourg 6.2%
Canada 4.3%
Saint Lucia 2.0%
France 2.0%
Netherlands 1.9%
Jamaica 0.7%
United Kingdom 0.5%
Macau 0.4%
Top 10 Holdings
(as a % of net assets as of 10/31/2019)
Altice S.A., 7.6%, 2/15/2025 3.85%
Sysco Corp., 1.8%, 11/1/2019 3.52%
Laureate Education, Inc., 8.3%, 5/1/2025 3.46%
Frontier Communications Corp., 8.5%, 4/1/2026 3.42%
Staples, Inc., 7.5%, 4/15/2026 2.92%
Sonoco Products Co., 1.8%, 11/1/2019 2.84%
Digicel International Finance Ltd., 8.8%, 5/25/2024 2.44%
Olympus Merger Sub, Inc., 8.5%, 10/15/2025 2.15%
Dynacast International LLC, 10.6%, 1/30/2023 2.10%
Altice Luxembourg S.A., 10.5%, 5/15/2027 2.10%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 9/30/2019)
Sector Allocation
(as a % of bond holdings as of 10/31/2019)
Energy 62.7%
Consumer Discretionary 34.6%
Health Care 1.6%
Consumer Staples 1.1%

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.

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.

Investment return, price, yields and NAV will fluctuate with changes in market conditions. At the time of sale, your shares may have a market price that is above or below net asset value, and may be worth more or less than your original investment. There is no assurance that a fund will meet its investment objective.

1. Regulatory Leverage consists of borrowings, preferred shares, debt securities or other commercial paper, and Effective Leverage, divided by Managed Assets.

2. Effective Leverage consists of Regulatory Leverage, derivatives instruments including total return swaps, securities lending arrangements and credit default swaps or other derivative transactions divided by Managed Assets.

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.

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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