Waddell & Reed

Fund Detail

Delaware Ivy Emerging Markets Local Currency Debt Fund
Class A Shares

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Fund Facts
Ticker Symbol IECAX
CUSIP 465899227
Fund Code 631
Fund Type Fixed Income Funds
Fund Inception 4/30/2014
Class Inception 4/30/2014
Fiscal Year End September
Dividends Paid March, June, September, December
Fund Assets (as of 9/30/2021) $52.4 mil
Total Holdings (as of 9/30/2021) 148
Portfolio Turnover Rate (as of 9/30/2020) 121%
Lipper Category Emerging Markets Local Currency Debt Fds
Morningstar Category Emerging-Markets Local-Currency Bond
Benchmarks JPM GBI EM Global Diversified TR USD
Daily Prices
as of 10/8/2021
Net Asset Value (NAV) $8.77
NAV Change ($) ($0.01)
NAV Change (%) -0.11%
Weekly NAV Change ($) ($0.05)
Weekly NAV Change (%) -0.57%
Public Offering Price (POP) $9.18
Historical Prices & Distributions
Please select a date
Fund Description

Pursuing opportunities in emerging market debt


Select economies
Emerging market local currency issuers are about one-quarter of the world’s emerging economies.
Total return objective
Seeks to provide total return through a combination of current income and capital appreciation.
Experienced management
Subadvised by Pictet Asset Management, the investment management arm of Pictet & Cie, which launched its first emerging markets strategy in 1998.
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 1/31/2022
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV N/A N/A N/A N/A N/A N/A
Fund at Offer* N/A N/A N/A N/A N/A N/A
Lipper Emerging Markets Local Currency Debt Fds N/A N/A N/A N/A N/A -0.07%
Quarterly Rates of Return
(Returns for periods of less than 1-yr are not annualized)
Average Annual Total Returns
as of 12/31/2021
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV N/A N/A N/A N/A N/A N/A
Fund at Offer* N/A N/A N/A N/A N/A N/A
Lipper Emerging Markets Local Currency Debt Fds N/A N/A N/A N/A N/A -0.37%
Expense Ratios
as of 1/31/2021
Net 1.20%
Gross 1.51%
12-Month Trailing Distribution Yield
as of 9/30/2021
NAV 0.10%
With sales charge 0.09%
Annualized 30-Day SEC Yield
as of 9/30/2021
Subsidized 3.16%
Unsubsidized 2.66%
Growth of a $10,000 Investment
through 9/30/2021

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 11/30/2019
Category: Emerging Markets Local Currency Debt Fds
  Rank Percentile
1 Year 64 / 75 85
3 Year 66 / 70 93
5 Year 60 / 64 93

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

Morningstar Ratings
as of 1/31/2022
Category: Emerging-Markets Local-Currency Bond
Overall (out of 73 Emerging-Markets Local-Currency Bond)
3 Year (out of 73 Emerging-Markets Local-Currency Bond)
5 Year (out of 69 Emerging-Markets Local-Currency Bond)

Ratings are based on risk-adjusted returns.

Holdings
Portfolio Composition
(as a % of net assets as of 9/30/2021)
Other Government Securities 80.79%
Cash and Cash Equivalents 19.16%
Other Financial Instruments 0.05%
Quality
(as a % of bond holdings as of 9/30/2021)
NonRated 5.6 %
AA 5.3 %
A 28.0 %
BBB 42.5 %
BB 14.5 %
B 4.1 %

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 9/30/2019)
<1 Year 19.5 %
1-5 Years 19.0 %
5-10 Years 31.3 %
10-20 Years 22.6 %
>20 Years 7.7 %
Average Maturity 8.46 years
Effective Duration 6.76 years

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

Fixed Income Country Allocation
(as a % of bond holdings as of 9/30/2021)
China 25.3%
Indonesia 9.9%
Thailand 7.9%
South Africa 7.6%
Russia 6.7%
Malaysia 5.4%
Czech Republic 5.3%
Colombia 5.1%
Brazil 5.0%
Hungary 4.0%
Romania 3.5%
Mexico 3.1%
Egypt 2.9%
Peru 2.3%
Chile 2.1%
Turkey 1.4%
Poland 0.6%
Ukraine 0.6%
Ghana 0.6%
Dominican Republic 0.4%
Columbia 0.3%
Uruguay 0.2%
Top 10 Holdings
(as a % of net assets as of 9/30/2021)
State Street Institutional U.S. Government Money Market Fund - Premier Class, 0.025%, 2-1-22, 0.0% 14.36%
China Government Bond, 2.4%, 7/2/2023 7.14%
China Government Bond, 2.0%, 4/9/2025 6.93%
U.S. 5-Year Treasury Note, 12/30/2021 4.22%
Thailand Government Bond, 2.9%, 12/17/2028 2.11%
Brazil Letras do Tesouro Nacional, 1/1/2024 2.07%
Indonesia Government Bond, 8.8%, 5/15/2031 2.03%
Thailand Government Bond, 2.0%, 12/17/2031 1.66%
China Government Bond, 3.0%, 3/11/2026 1.33%
China Government Bond, 2.9%, 11/5/2023 1.32%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 9/30/2021)
Portfolio Management
Manager Name Company Name Years in Industry Years with Fund
Mary-Therese Barton joined Pictet Asset Management in 2004 and is the Head of Emerging Debt. Before assuming her current position in 2018, she was a Senior Investment Manager in the team. She joined as an Emerging Debt Analyst. Prior to joining Pictet, she worked at Dun & Bradstreet, where she was an economist responsible for analyzing European countries. Ms. Barton graduated with a BA (Hons) in Philosophy, Politics and Economics from Balliol College, Oxford. She holds an MSc with distinction in Development Finance from the Centre for Financial Management Studies, SOAS (School of Oriental and African Studies), part of the University of London. She is a Chartered Financial Analyst (CFA) charterholder.Mary-Therese Barton Pictet Asset Management (Sub-adviser) 20 7
Guido Chamorro joined Pictet Asset Management in 2005 and is co-lead of the USD Emerging Debt business. Prior to assuming his current role, he was a Credit Analyst in the Fixed Income Credit Research team and was appointed as Investment Manager for Emerging Debt, specializing in EM corporates, in 2007. Before joining Pictet, he worked for Fitch, Inc. in Chicago as a director of their Latin American Corporate Finance Group and Duff & Phelps Credit Rating as an analyst, thereby gaining seven years experience in corporate credit research. Mr. Chamorro graduated with a BA in Economics from the University of Chicago and holds an MBA from the University of Chicago Graduate School of Business.Guido Chamorro Pictet Asset Management (Sub-adviser) 25 7
Carrie Liaw joined Pictet Asset Management in 2015. She is a Senior Investment Manager responsible for global emerging market debt and Asian debt portfolios based in Singapore. Before joining Pictet, Ms. Liaw was with the Monetary Authority of Singapore for 15 years and worked in different investment divisions within the Reserve Management Department, including heading up the European Rates and FX divisions. Ms. Liaw holds a Bachelor of Business (Hons) in Financial Analysis from Nanyang Technological University, Singapore. She is a Chartered Financial Analyst (CFA) charterholder.Carrie Liaw Pictet Asset Management (Sub-adviser) 22 6
Alper Gocer joined Pictet Asset Management in 2016. He leads the Emerging Local Currency Debt business. Prior to assuming his current role in 2018, he was a Senior Investment Manager in the Total Return Emerging Markets team. Before joining Pictet, Mr. Gocer was a Portfolio Manager at London Diversified Fund Management within the Global Macro Fund. Prior to LDFM, he was a Portfolio Manager at North Asset Management focused on Global Macro trading mainly in Emerging Markets. He began his career as a Quantitative Analyst at Citigroup. Mr. Gocer has a Masters in Finance from the London Business School and a BSc. in Industrial Engineering from Bilkent University.Alper Gocer Pictet Asset Management (Sub-adviser) 23 3
Robert Simpson joined Pictet Asset Management in 2019. He is co-Head of Emerging Hard Currency Debt/Senior Investment Manager, based in London. Prior to assuming his current role, Mr. Simpson was a Senior Investment Manager in the team covering both hard and local currency debt focusing on EMEA and Latin American regions. Before joining Pictet, Mr. Simpson spent 13 years at Insight Investment where he was a portfolio manager focusing on hard and local currency emerging market debt portfolios. Mr. Simpson holds a BSc in Pharmacology, attained a PG Diploma in Economics in 2004 and later earned an MSc in Finance and Economics in 2005, all from the University of Manchester. He is a Chartered Financial Analyst (CFA) charterholder.Robert Simpson,CFA Pictet Asset Management (Sub-adviser) 16 2
Ali Bora Yigitbasioglu joined Pictet Asset Management in 2019. He is a Senior Investment Manager in the Emerging Market Debt team responsible for global emerging market debt and Asian debt portfolios. Prior to assuming his current role, he was a Senior Investment Manager for the Total Return Fixed Income team. Before joining Pictet, Mr. Yigitbasioglu was Senior Portfolio Manager in Global Macro at Cambridge Strategy Asset Management in Monaco, responsible for FX and Rates and specializing in Asian markets. Mr. Yigitbasioglu graduated in Pure and Applied Maths at Cambridge University, and continued his graduate studies with Distinction at Imperial College in Finance and at Bilkent University in Finance and Econometrics. He completed his PhD in Mathematical Finance at ICMA Centre (Reading) and started his career in London at Lehman Brothers in 2004 as an FX Quantitative Analyst. From 2006 until 2010 he was an EM local rates trader, and a Hybrid Exotics trader at Lehman Brothers and Dresdner Kleinwort, respectively.Ali Bora Yigit Pictet Asset Management (Sub-adviser) 17 1
Adriana Cristea joined Pictet Asset Management in April 2018. She is an Investment Manager in the Emerging Debt team. Before assuming her current position in 2020, she was a Macro Strategist in the team. Prior to joining Pictet, Ms. Cristea spent six years at DG Partners, a global macro hedge fund, as a Senior Global Macro Research Analyst and Strategist focusing on Emerging Markets Forex, Rates and Credit strategies. Ms. Cristea holds a BSc in Financial Management from the University of Essex and a MSc in Finance from the University of Warwick. She also holds the Investment Management Certificate (IMC).Adriana Cristea Pictet Asset Management (Sub-adviser) 10 1

[1917052]


Significant Event On September 13, 2021, the Board of Trustees (Board) of the Ivy Funds approved the appointment of Macquarie Investment Management Austria Kapitalanlage AG portfolio managers Stefan Löwenthal and Jürgen Wurzer and Aaron D. Young of Delaware Management Company (DMC) to join F. Chace Brundige of DMC as Fund portfolio managers. In connection with this change, the Board approved applicable revisions to the Fund’s investment strategies. All changes took effect on or about November 15, 2021.

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: Investing involves risk, including the possible loss of principal. 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. Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Fund’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries. These disruptions could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund. IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance. 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.

The Morningstar World Allocation Category compares funds that seek to provide both capital appreciation and income by investing in stocks, bonds, and cash. While these funds may invest globally, most focus on the United States, Canada, Japan, and the larger markets in Europe. It is rare for such funds to invest more than 10% of their assets in emerging markets, and typically have at least 10% of their assets in bonds, less than 70% of assets in stocks, and at least 40% of assets in non-US stocks or bonds.

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: The JP Morgan GBI-EM Global Diversified tracks the performance of emerging market debt. 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 January 31, 2022, Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust, the Fund’s investment manager, Delaware Distributors, L.P. (Distributor), 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-1fees 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) for Class A shares at 1.23%, Class C shares at 2.00%, Class I shares and Class R6 shares at 0.80% and Class Y shares at 1.25%. 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, 2022, Delaware Distributors, L.P. (Distributor) 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 R6 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.

Effective July 1, 2021, the Maximum Sales Charge (Load) imposed on purchases (as a % of offering price) for Class A shares changed from 2.50% to 4.50%. Additionally, the low balance fee for Class A Shares of the Fund was eliminated and accounts will NOT be assessed an account fee of $20 if the account balance is below $650 at the start of business on the Friday prior to the last full week of September 2020 (i.e., September 18, 2020).

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 product 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.

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.

© 2021 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.

The Fund is subadvised by Pictet Asset Management Limited (Pictet UK). Pictet UK delegates to its affiliate, Pictet Asset Management (Singapore) PTE Ltd (Pictet Singapore, and collectively with Pictet UK, Pictet), portfolio management responsibilities for Fund assets allocated to Asian investments. References to Pictet Asset Management include both entities.

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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