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Fund Detail

Ivy High Income Fund
Class E Shares

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Fund Facts 
Ticker Symbol
IVHEX
CUSIP
466000130
Fund Code
409
Fund Type
Fixed Income Funds
Fund Inception
07/31/1997
Class Inception
04/02/2007
Fiscal Year End
March
Dividends Paid
Daily, Paid Monthly
Net Assets (as of 06/30/2010)
$1.2 bil
Total Holdings (as of 06/30/2010)
199
Turnover Rate (as of 03/31/2010)
84%
Lipper Category
High Current Yield
Morningstar Category
High Yield Bond
Benchmark
Citi. High Yield Market

Daily Prices6

Updated 9/8/2010
Net Asset Value (NAV) $8.36
NAV Change ($) $0.01
NAV Change (%) 0.12%
Weekly NAV Change ($) $0.02
Weekly NAV Change (%) 0.24%
Public Offering Price (POP) $8.87

   Historical Prices & Distributions

   
   

Fund Description
Fund Objective 
To provide, as its primary objective, a high level of current income. As a secondary objective, the Fund seeks capital growth when consistent with its primary objective.
 
Investment Approach 
The Fund invests primarily in a diversified portfolio of high-yield, high-risk, fixed-income securities of domestic and, to a lesser extent, foreign issuers. The manager looks at a number of factors in selecting securities for the Fund, beginning with the economic environment, interest rate trends and industry fundamentals, progressing to analysis of a company's fundamentals, including financial strength, growth of operating cash flows, strength of management, borrowing requirements and potential to improve credit standing.
 
  Morningstar Style Box7

Returns and Expenses1, 2, 3, 4, 5
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.

  Monthly Rates of Return

  Average Annual Total Returns
  as of 8/31/2010
  1yr 3yr 5yr 10yr Lifetime
Fund at NAV 17.22% 8.03% N/A N/A 6.81%
Fund with maximum 5.75% sales charge 10.49% 5.92% N/A N/A 4.97%

  Quarterly Rates of Return

  Average Annual Total Returns
  as of 6/30/2010
  1yr 3yr 5yr 10yr Lifetime
Fund at NAV 20.59% 6.37% N/A N/A 6.06%
Fund with maximum 5.75% sales charge 13.66% 4.28% N/A N/A 4.14%
Citi. High Yield Market 25.64% 5.90% 6.66% 7.18% 5.49%
Lipper High Current Yield 23.96% 3.34% 5.01% 5.36% 3.17%

Expense Ratios 
as of 07/31/2010
Net  1.36%
Gross  1.83%
12-Month Trailing Distribution Yield 
as of 7/31/2010
NAV  7.90%
with sales charge  7.44%
30-Day SEC Yield 
as of 7/31/2010
with sales charge  7.05%

Growth of a $10,000 Investment
through 06/30/2010

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.

1. Class E shares are subject to an initial sales charge of 5.75 percent when purchased for your InvestEd Plan account; it also features a step down structure of lowering the initial sales charge based on the amount of your investment.

2. Citigroup High Yield Market is an unmanaged index comprised of securities that represent the high yield bond market. It is not possible to invest directly in an index

3. Consider all factors Investing in high-income securities may carry a greater risk of nonpayment or interest or principal than higher-rated bonds. Fixed income securities are subject to interest rate risk and, as such, the net asset value of the Fund may fall as interest rates rise. These and other risks are more fully described in the Fund?s prospectus. As with any mutual fund, the value of the Fund?s shares will change, and you could lose money on your investment. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

4. 12-Month Trailing Distribution Yield refers to the 12-month historical cash flow relative to the principal amount invested in a mutual fund. The Distribution Yield is a measure of cash flow, which will be mostly interest paid out in the period, but can also include capital gains distributions, return of principal, etc. Distribution Yield may be more or less than what the fund has actually earned in the period.

5. The 30-Day SEC Yield is calculated based on a formula mandated by the SEC that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income 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.

Ratings & Rankings
Lipper Rankings
as of 06/30/2010
Category: High Current Yield
  Rank Percentile
1 Year 339/474 72
3 Year 22/410 6

Rankings are based on average annual total returns, but do not consider sales charges.
Morningstar Ratings
as of 06/30/2010
Category: High Yield Bond
Overall   (out of 500 High Yield Bond)
3 Year   (out of 500 High Yield Bond)

Rankings are based on risk-adjusted returns.

Holdings
Maturity8
(as of 06/30/2010)
<1 Year 4.9%
1-5 Years 40.7%
6-10 Years 52.0%
11-20 Years 1.2%
>20 Years 1.2%
Average Maturity 4.92 years
Top 10 Holdings
(as a % of net assets as of 06/30/2010)
Texas Competitive Electric Holdings Company, LLC, 3.85%, 10/10/2014 3.8%
Laureate Education, Inc., 10.00%, 8/15/2015 2.5%
Laureate Education, Inc., 11.75%, 8/15/2017 1.9%
Ply Gem Industries, Inc., 11.75%, 6/15/2013 1.8%
Goodman Global Group, Inc., û%, 12/15/2014 1.7%
CIT Group, Inc., 7.00%, 5/1/2013 1.6%
CapitalSource Inc., 12.75%, 7/15/2014 1.6%
N.E.W. Holdings I, LLC, 9.50%, 3/5/2017 1.4%
Springboard Finance, L.L.C., 7.00%, 2/2/2015 1.4%
Advantage Sales and Marketing Inc., 8.50%, 4/5/2017 1.3%
Total Portfolio Holdings
(updated quarterly, upon availability)
 
View | Download (as of 06/30/2010)
Quality Breakdown8
(as of 06/30/2010)
Gov't 0.0%
AAA 0.0%
AA 0.0%
A 1.0%
BBB 4.5%
BB 11.2%
B 54.5%
Below B 18.6%
Non-Rated 10.2%
Effective Duration 3.80 years

Portfolio Management
Manager Name Company Name Years in Industry Years with Fund
 Bryan C. Krug, CFA  Ivy Investment Management Company  11  4

6. Per share values based on closing quotes unless noted, as supplied to the NASDAQ by 6:00 p.m. Eastern time. Ivy Funds Class A and Class Y shares are subject to distribution and service fees of up to 0.25% of the average daily net assets, annually, pursuant to SEC Rule 12b-1, while Class B and Class C shares are subject to distribution and service fees of up to 1.00% of the average daily net assets, annually, pursuant to SEC Rule 12b-1. Class Y shares may be purchased only by certain institutional investors set forth in each fund's prospectus.

7. The style box reveals a fund's investment strategy by displaying the average credit quality of the bonds owned and the interest rate sensitivity, as measured by a bond's maturity.

8. Information is subject to change and is not intended to represent any past or future investment recommendations. Quality ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings obtained from Moody's.