Ivy Funds - Business Plan

Business Continuity Plan of Ivy Funds Distributor, Inc.

Recently enacted rules require broker-dealers to implement business continuity plans and provide information regarding such plans to clients. Ivy Funds Distributor, Inc., distributor of the Ivy Funds, has developed a plan to address how it can best continue to operate in the event of a significant business disruption. While a catastrophic event may negatively impact our ability to continue to transact business, we have attempted through our planning to identify potential disruptions and methods to continue to operate in the event such disruptions occur. This is intended as a summary of our business continuity plan. Since the timing and extent of significant business disruptions are by nature unpredictable, we have reserved flexibility in our plan to allow us to respond to actual events in the manner we deem appropriate as they occur.

Contacting Us – Your primary contact in the event of a significant business disruption affecting our home office in Overland Park, Kansas should be your financial professional. If your financial professional or the division office to which your financial professional is assigned experiences a significant business disruption, you can contact our home office at 1.800.777.6472. If a significant business disruption affects your ability to contact our home office, you should go to the Ivy Funds web site at www.ivyfunds.com for instructions on how to obtain information regarding your accounts.

Our Business Continuity Plan – If a significant business disruption does occur, we plan to quickly recover and resume business operations and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our clients to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.

Our business continuity plan addresses: data back up and recovery; all mission critical systems; financial and operational assessments; alternative communications with clients, employees, and regulators; alternate physical location of critical employees; critical suppliers, contractor, banks and counter-party impact; regulatory reporting; and assuring our clients prompt access to their funds and securities if we are unable to continue our business. The transfer agent for the Ivy Funds backs up our important records in a physically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, our objective is to restore our operations and be able to complete existing transactions and accept new transactions and payments as soon as reasonably practicable following a significant business disruption. Your orders and requests for funds could be delayed during this period.

Varying Disruptions – Significant business disruptions can vary in their scope. These could include only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, or a disruption affecting our business district, city, or region, we have made arrangements to temporarily transfer our mission critical operations to an off-site location outside of the affected area when needed, and we expect to resume business as soon as reasonably practicable depending upon the severity of the disruption. In such event, we plan to provide information on the Ivy Funds web site (www.ivyfunds.com) or via our Client Services number (1.800.777.6472) regarding methods to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will take all necessary steps to assure our clients’ prompt access to their funds.

For more information – If you have questions about our business continuity plan, you can contact us at 1.800.777.6472.

Past performance is no guarantee of future results. The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Funds Distributor, Inc. Waddell & Reed Financial, Inc., the ultimate parent company of Ivy Funds Distributor, Inc., acquired the investment advisor to the Ivy Funds in December 2002.

The products and services described in this website are offered only in the United States, Puerto Rico and the U.S. Virgin Islands. Nothing in this website should be considered a solicitation to buy or an offer to sell such products and services in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Ivy Funds distributed by Ivy Funds Distributor, Inc. and Waddell & Reed InvestEd Portfolios distributed by Waddell & Reed, Inc. are offered by prospectus only.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for the Ivy Funds, call your financial advisor or click here. Please read the prospectus carefully before investing.