Waddell & Reed

Fund Detail

Ivy Science and Technology Fund
Class A Shares

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Fund Facts
Ticker Symbol WSTAX
CUSIP 466000718
Fund Code 608
Fund Type Specialty Funds
Fund Inception 7/31/1997
Class Inception 7/3/2000
Fiscal Year End March
Dividends Paid December
Fund Assets (as of 10/31/2019) $7.6 bil
Total Equity Holdings (as of 10/31/2019) 38
Total Holdings (as of 10/31/2019) 55
Portfolio Turnover Rate (as of 3/31/2019) 14%
Lipper Category Science & Technology Funds
Morningstar Category Technology
Benchmarks S&P North American Technology TR
Daily Prices
as of 11/11/2019
Net Asset Value (NAV) $74.50
NAV Change ($) ($0.29)
NAV Change (%) -0.39%
Weekly NAV Change ($) $0.18
Weekly NAV Change (%) 0.24%
Public Offering Price (POP) $79.05
Historical Prices & Distributions
Please select a date
Fund Description

Focused on growth. Rooted in innovation.


Excellent track record
Strong historical results, managed by an investment team with more than 45 years of experience.
Multiple, non-correlated sources of growth
Seeks opportunities within technology, health care, and applied science and technology.
Proven investment process
Built on a six-decade firm legacy of technology investing expertise.
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 36.39% 23.90% 22.22% 11.36% 14.86% 8.34%
Fund with 5.75% sales charge 28.55% 16.77% 19.83% 10.05% 14.18% 8.00%
S&P North American Technology TR 31.69% 20.58% 23.55% 19.22% 17.89% 4.23%
Lipper Science & Technology Funds 27.12% 17.54% 19.71% 15.20% 15.46% 3.16%
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 30.59% 6.92% 18.35% 10.51% 13.96% 8.13%
Fund with 5.75% sales charge 23.09% 0.78% 16.04% 9.21% 13.29% 7.80%
S&P North American Technology TR 27.64% 4.90% 22.02% 18.77% 17.43% 4.08%
Lipper Science & Technology Funds 22.91% 1.74% 17.64% 14.86% 14.64% 3.01%
Expense Ratios
as of 7/31/2019
Net 1.19%
Gross 1.19%
Growth of a $10,000 Investment
through 10/31/2019
 Science and Technology A
 S&P North American Technology TR

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: Science & Technology Funds
  Rank Percentile
1 Year 32 / 181 18
3 Year 39 / 158 25
5 Year 120 / 139 86
10 Year 73 / 118 62

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

Morningstar Ratings
as of 10/31/2019
Category: Technology
Overall (out of 194 Technology)
3 Year (out of 194 Technology)
5 Year (out of 179 Technology)
10 Year (out of 153 Technology)

Ratings are based on risk-adjusted returns.

Holdings
Portfolio Composition
(as a % of net assets as of 10/31/2019)
Domestic Common Stock 81.41%
Foreign Common Stock 17.37%
Cash and Cash Equivalents 1.07%
Other Financial Instruments 0.09%
Corporate Bonds 0.06%
Sector Allocation
(as a % of equity holdings as of 10/31/2019)
Information Technology 62.1%
Health Care 14.7%
Communication Services 13.8%
Consumer Discretionary 6.9%
Real Estate 1.6%
Industrials 0.5%
Materials 0.4%
Equity Country Allocation
(as a % of equity holdings as of 10/31/2019)
United States 82.4%
India 4.8%
China 4.3%
Netherlands 3.0%
Germany 2.5%
Taiwan 1.2%
South Korea 1.2%
Switzerland 0.6%
Israel 0.1%
Top 10 Equity Holdings
(as a % of net assets as of 10/31/2019)
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. 10.69%
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. 6.35%
Universal Display Corp. is part of an industry and government effort to support a North American flat-panel display infrastructure. The company and its partners are developing high-resolution, full-color, lightweight Organic Light Emitting Diode (OLED) technology.Universal Display Corp. 5.40%
Vertex Pharmaceuticals Incorporated engages in the discovery, development, and commercialization of small molecule drugs for the treatment of serious diseases worldwide.Vertex Pharmaceuticals, Inc. 5.27%
Euronet Worldwide, Inc. is an electronic payments provider of payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, individual consumers.Euronet Worldwide, Inc. 5.04%
Facebook, Inc. operates as a social networking company worldwide. It builds various tools that enable users to connect, share, discover, and communicate with each other on mobile devices and computers.Facebook, Inc., Class A 5.00%
Aspen Technology, Inc., together with its subsidiaries, develops and supplies integrated software and services that enable the process industries to design, operate, manage, and optimize their business processes.Aspen Technology, Inc. 4.79%
Micron Technology, Inc., engages in the manufacture and marketing of semiconductor devices worldwide.Micron Technology, Inc. 4.74%
WNS (Holdings) Limited provides business process management services comprising data, voice, analytical, and business transformation services worldwideWNS (Holdings) Ltd. ADR 4.74%
Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally.Alibaba Group Holding Ltd. ADR 4.22%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 9/30/2019)
Top 10 Industry Allocation
(as a % of equity holdings as of 10/31/2019)
Semiconductors 19.9%
Interactive Media & Services 11.5%
Data Processing & Outsourced Services 11.3%
Systems Software 10.8%
Biotechnology 10.3%
Application Software 9.0%
Technology Hardware, Storage & Peripherals 7.6%
Internet & Direct Marketing Retail 6.9%
Health Care Technology 3.7%
Semiconductor Equipment 3.0%
Portfolio Management
Manager Name Company Name Years in Industry Years with Fund
Zack Shafran is co-portfolio manager of Ivy Science and Technology Fund and Ivy VIP Science and Technology. He has been portfolio manager of the Science and Technology funds since 2001. He assumed co-portfolio manager responsibilities for the funds in 2016. Mr. Shafran joined the organization in 1990 as an equity investment analyst. He was appointed assistant vice president in 1993 and vice president in 1996. He was appointed senior vice president in 2000. He was portfolio manager of Ivy VIP Small Cap Growth from 1996 to 1999. He was portfolio manager of the former Waddell & Reed Advisors New Concepts Fund from 1999 to 2001, and of Ivy Mid Cap Growth Fund from 2000 to 2001. He served as Global Director of Equity and Fixed Income Research from 2010 to 2016. Mr. Shafran graduated from the University of Missouri-Kansas City (UMKC) in 1988 with a Bachelors in Business Administration. He earned an MBA from UMKC in 1992. He was previously affiliated with Piper, Jaffray & Hopwood as an investment executive from 1988 to 1990. Mr. Shafran is a member of the CFA Institute and the CFA Society of Kansas City.Zachary H. Shafran Ivy Investment Management Company 31 18
Brad Warden is co-portfolio manager of Ivy Science and Technology Fund and Ivy VIP Science and Technology. He had been assistant portfolio manager of the Science and Technology funds since 2014. He was named co-portfolio manager of the funds in 2016. Mr. Warden joined the organization in 2003 as an equity investment analyst. He was appointed assistant vice president in 2010 and vice president in 2015. During his tenure as an analyst, he covered health care services, software, hardware, IT services, semiconductor, and semiconductor capital equipment industries. Prior to joining the firm, Mr. Warden was an equity analyst intern for AIM Management Group, Inc. during summer 2002. From 1997 through 2001 he held defined benefit plan consulting roles, including project manager and unit manager, at AON Hewitt (formerly Hewitt Associates LLC). Mr. Warden graduated from Trinity University, San Antonio, Texas in 1997 with a BS in Business Administration. He earned an MBA with an emphasis in Finance from the University of Texas at Austin, McCombs School of Business in 2003. During his time at the University of Texas, he was a portfolio manager for the MBA Investment Fund. Mr. Warden is a CFA charterholder. He is a member of the CFA Institute and the CFA Society of Kansas City.Brad Warden Ivy Investment Management Company 22 3

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 S&P North American Technology Sector Index is an unmanaged index comprised of U.S. securities classified under the GICS® technology sector and internet retail sub-industry. It is not possible to invest directly in an index.”

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 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 B shares at 2.03% and Class E shares at 1.28%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees (Board).

Fee Waiver and/or Expense Reimbursement: Through July 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.

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.

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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