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Fund Detail

Ivy Mortgage Securities Fund
Class E Shares

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Fund Facts 
Ticker Symbol
IMSEX
CUSIP
465899888
Fund Code
447
Fund Type
Fixed Income Funds
Fund Inception
05/03/1985
Class Inception
04/02/2007
Fiscal Year End
March
Dividends Paid
Daily, Paid Monthly
Net Assets (as of 06/30/2010)
$146.3 mil
Total Holdings (as of 06/30/2010)
232
Turnover Rate (as of 03/31/2010)
268%
Lipper Category
U.S. Mortgage
Morningstar Category
Short-term Bond
Benchmark
BarCap Mortgage-Backed Securities

Daily Prices7

Updated 9/8/2010
Net Asset Value (NAV) $8.45
NAV Change ($) -$0.01
NAV Change (%) -0.12%
Weekly NAV Change ($) $0.00
Weekly NAV Change (%) 0.00%
Public Offering Price (POP) $8.97

   Historical Prices & Distributions

   
   

Fund Description
Fund Objective 
To provide a high level of current income consistent with prudent investment risk.
 
Investment Approach 
The Fund seeks to provide investors with exposure to quality and higher yield potential through investments made in pools of mortgage loans. In selecting securities, the Fund's subadvisor follows a bottom-up fundamental approach and considers factors such as prepayment risk, liquidity, credit quality and the type of loan and collateral underlying the security, as well as trends in economic conditions, interest rates and the mortgage market.
 
  Morningstar Style Box8

Returns and Expenses1, 2, 3, 4, 5, 6
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 10.79% -1.80% N/A N/A -1.75%
Fund with maximum 5.75% sales charge 4.42% -3.72% N/A N/A -3.44%

  Quarterly Rates of Return

  Average Annual Total Returns
  as of 6/30/2010
  1yr 3yr 5yr 10yr Lifetime
Fund at NAV 13.66% -2.16% N/A N/A -2.14%
Fund with maximum 5.75% sales charge 7.13% -4.07% N/A N/A -3.91%
BarCap Mortgage-Backed Securities 7.47% 8.23% 6.25% 6.54% 7.41%
Lipper U.S. Mortgage 10.18% 5.69% 4.42% 5.20% 4.97%

Expense Ratios 
as of 07/31/2010
Net  1.14%
Gross  2.07%
12-Month Trailing Distribution Yield 
as of 7/31/2010
NAV  4.29%
with sales charge  4.04%
30-Day SEC Yield 
as of 7/31/2010
with sales charge  3.96%

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. The Advantus Mortgage Securities Fund merged into the Ivy Mortgage Securities Fund on Dec. 8, 2003. The performance shown for periods prior to this date is that of the Advantus Mortgage Securities Fund Class A shares, restated to reflect current sales charges applicable to Ivy Mortgage Securities Fund Class A shares. Performance has not been restated to reflect the fees and expenses applicable to the Ivy Mortgage Securities Fund. If these expenses were reflected, performance shown would differ.

3. BarCap Mortgage-Backed Securities is an unmanaged index representing the mortgage securities market. It is not possible to invest directly in an index.

4. Consider All Factors. The risks incurred by mortgage securities include, but are not limited to, reinvestment of prepaid loans at lower rates of return. In addition, the net asset value of mortgage securities may fluctuate in response to changes in interest rates and are not guaranteed. 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.

5. 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.

6. Per share values based on closing quotes unless noted, as supplied to the NASDAQ by 6:00 p.m. Eastern time. Waddell & Reed Advisors Funds Class A 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.

Ratings & Rankings
Lipper Rankings
as of 06/30/2010
Category: U.S. Mortgage
  Rank Percentile
1 Year 15/98 16
3 Year 84/87 96

Rankings are based on average annual total returns, but do not consider sales charges.
Morningstar Ratings
as of 06/30/2010
Category: Short-term Bond
Overall   (out of 1011 Short-term Bond)
3 Year   (out of 1011 Short-term Bond)

Rankings are based on risk-adjusted returns.

Holdings
Portfolio Composition9
(as a % of net assets as of 06/30/2010)
Government Bonds 71.0%
Corporate Bonds 22.0%
Cash 8.0%
Maturity
(as of 06/30/2010)
<1 Year 3.6%
1-5 Years 74.4%
6-10 Years 16.3%
11-20 Years 1.2%
>20 Years 4.6%
Average Maturity 4.74 years
Top 10 Holdings9
(as a % of net assets as of 06/30/2010)
Government National Mortgage Association Fixed Rate Pass-Through Certificat 2.2%
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificate 2.1%
Government National Mortgage Association Fixed Rate Pass-Through Certificat 2.1%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates, 2.0%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates, 1.9%
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificate 1.8%
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificate 1.7%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates, 1.5%
Government National Mortgage Association Fixed Rate Pass-Through Certificat 1.5%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates, 1.5%
Total Portfolio Holdings
(updated quarterly, upon availability)
 
View | Download (as of 06/30/2010)
Quality Breakdown
(as of 06/30/2010)
Gov't 76.6%
AAA 7.0%
AA 4.8%
A 3.2%
BBB 1.2%
BB 2.0%
B 1.2%
Below B 1.8%
Non-Rated 2.3%
Effective Duration 2.59 years

Portfolio Management
Manager Name Company Name Years in Industry Years with Fund
 Chris Sebald, CFA  Advantus Capital Management (subadvisor)  20  6
 David Land, CFA  Advantus Capital Management (subadvisor)  18  5

7. 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.

8. 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.

9. 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.