Ivy Funds VIP-Science and Technology-A-851

Insights & Outlook

04.22.14

U.S. economic data weakened unexpectedly in the first quarter. Many economists point to the severe winter across the country as a key factor. It's impossible to determine exactly how much the weather affected the economy, but we believe it remains healthy.

FUND DETAIL

Ivy Funds VIP Science and Technology
  /  CLASS A SHARES

FIND PRODUCTS

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Summary

Our Approach

Invests primarily in equity securities of science and technology companies around the globe. The fund may also invest in companies that utilize science and/or technology to significantly enhance their business opportunities. We typically emphasize growth potential in selecting stocks; that is, we seek companies in which earnings are likely to grow faster than the economy. We aim to identify strong secular trends within industries and then apply a bottom-up stock selection process by considering a number of factors in selecting securities, including growth and earnings potential, quality of management, industry / market size potential, and applicable market and economic conditions.

Morningstar Style Box

Portfolio Management

  • Zachary H. Shafran

    • — Waddell & Reed Investment Management Company
    • — 13 Years with Fund
    • — 25 Years in Industry
    Zachary H. Shafran is a senior vice president of Waddell & Reed Investment Management Company. Mr. Shafran graduated from the University of Missouri at Kansas City in 1988 with a BSBA degree in Business Administration. He earned an MBA with an emphasis in Finance from the University of Missouri at Kansas City in 1992. He was previously affiliated with Piper, Jaffray & Hopwood as an investment executive from March 1988 and through June 1990. Mr. Shafran joined Waddell & Reed in June 1990 as an investment analyst. He was promoted to assistant vice president in 1993. He was appointed vice president and portfolio manager of the Ivy Funds VIP Small Cap in 1996. Mr. Shafran was named portfolio manager of the Waddell & Reed Advisors New Concepts Fund in 1999 and of the W&R Mid Cap Growth Fund since its inception in July 2000. He was appointed senior vice president in March 2001 and named portfolio manager of the Ivy Funds VIP Science and Technology.

Daily Prices & YTD Return

as of 4/23/2014

Net Asset Value (NAV) $26.20
Daily NAV Change ($0.29) -1.12%
Weekly NAV Change $0.26 1.02%
Public Offering Price (POP) $26.21
YTD Return % -1.42%

Fund Facts

Ticker Symbol
CUSIP 46600H794
Fund Code 851
Fund Type Specialty Funds
Fund Inception 4/4/1997
Class Inception 4/4/1997
Fiscal Year End December
Dividends Paid May
Fund Assets
(as of 3/31/2014)
$585.0 mil
Total Equity Holdings
(as of 3/31/2014)
62
Total Holdings
(as of 3/31/2014)
66
Portfolio Turnover Rate
(as of 12/31/2013)
51%
Lipper Category Science & Technology Funds
Morningstar Category Technology
Benchmarks S&P North American Technology TR

Documents

Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
XBRL
Shafran Excels at Stock Picking
 

Daily Prices & YTD Return

as of 4/23/2014

Net Asset Value (NAV) $26.20
Daily NAV Change ($0.29) -1.12%
Weekly NAV Change $0.26 1.02%
Public Offering Price (POP) $26.21
YTD Return % -1.42%

Fund Facts

Ticker Symbol
CUSIP 46600H794
Fund Code 851
Fund Type Specialty Funds
Fund Inception 4/4/1997
Class Inception 4/4/1997
Fiscal Year End December
Dividends Paid May
Fund Assets
(as of 3/31/2014)
$585.0 mil
Total Equity Holdings
(as of 3/31/2014)
62
Total Holdings
(as of 3/31/2014)
66
Portfolio Turnover Rate
(as of 12/31/2013)
51%
Lipper Category Science & Technology Funds
Morningstar Category Technology
Benchmarks S&P North American Technology TR

Documents

Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
XBRL
Shafran Excels at Stock Picking
Risk Factors: As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the Portfolio's prospectus. Not all portfolios may be offered at all broker/ dealers.

Stylebox: The Morningstar Equity style box reveals a fund's investment strategy by displaying the fund's investment style and the market capitalization of the stocks owned.

Index Description: S&P North Ameri Tech Sector is an unmanaged index comprised of securities that represent the technology sector of the stock market. It is not possible to invest directly in an index.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

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.

Ivy VIP Science and Tech formerly known as W&R Target Science and Technology Portfolio.

Consider All Factors. As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not insured or guaranteed by the FDIC or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the portfolios's prospectus.

High recent returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

Annuity and life insurance guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. Variable investment options are subject to market risk, including loss of principal. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, management fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 59 1/2 may be subject to a 10% IRS tax penalty and surrender charges may apply.

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.

Alpha, Beta, R-Squared, Standard Deviation, Sharpe Ratio and Capture Ratio are 3 year statistics. Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of the fund's return to fluctuations in the market index. R-squared indicates how much of a fund's fluctuations were attributable to movements in the fund's benchmark. Standard deviation is a measure of how volatile a fund's returns are. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Morningstar Ratings: For each fund with at least a 3-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of all sales charges), placing emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund and rated separately.) A fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the share classes specified; other classes may have different performance characteristics.

Information is subject to change and is not intended to represent any past or future investment recommendations.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

Variable investment options are subject to market risk, including loss of principal, and are suitable for long-term investing, particularly for retirement. An investment in a Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 591/2 may be subject to a 10 percent IRS penalty in addition to taxes.

Ivy Funds VIPs are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies. They are not offered or made available directly to the public. Not all portfolios may be offered at all broker/dealer firms. Annuity guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. You can lose money by investing in a variable annuity.

Investors should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information, available by calling your financial advisor, clicking here or contacting the applicable insurance company. Please read the prospectuses or summary prospectuses carefully before investing.

Top 10 Equity Holdings

as a % of net assets as of 3/31/2014

Micron Technology, Inc.
Micron Technology, Inc., engages in the manufacture and marketing of semiconductor devices worldwide.
8.3%
Alliance Data Systems Corp.
Alliance Data Systems Corporation,provides data-driven and transaction-based marketing and customer loyalty solutions primarily in the United States and Canada.
4.9%
Aspen Technology, Inc.
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.
4.9%
Cree, Inc.
Cree, Inc. develops and manufactures semiconductor materials and devices.
4.8%
Acxiom Corp.
Acxiom Corporation is an enterprise data, analytics, and software-as-a-service company in the U.S., Europe, South America and the Asia-Pacific. It serves the financial services, insurance, information services, direct marketing, retail, consumer packaged goods, technology, automotive, healthcare, travel, and communications industries, as well as the non-profit and government sectors.
3.6%
Pentair, Inc.
Pentair Ltd. delivers products, services, and solutions for water and other fluids, thermal management, and equipment protection in the United States, Europe, Asia, and other regions.
3.1%
Google, Inc., Class A
Google Inc., a technology company, maintains index of Websites and other online content for users, advertisers, Google network members, and other content providers.
2.9%
Facebook, Inc., Class A
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.
2.8%
Euronet Worldwide, Inc.
Euronet Worldwide, Inc. is an electronic payments provider of payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, individual consumers.
2.8%
ACI Worldwide, Inc.
ACI Worldwide, Inc. engages in the development, marketing, installation, and support of software products and services to facilitate electronic payments worldwide.
2.7%

Portfolio Composition

as a % of net assets as of 3/31/2014

Domestic Common Stock 82.61%
Foreign Common Stock 15.82%
Cash and Cash Equivalents 1.58%

Sector Allocation

as a % of equity assets as of 3/31/2014

Information Technology 68.97%
Health Care 15.79%
Industrials 6.10%
Consumer Discretionary 4.54%
Materials 2.59%
Telecommunication Services 1.29%
Financials 0.71%

Country Allocation

as a % of equity assets as of 3/31/2014

United States 79.70%
Switzerland 3.30%
Bermuda 2.90%
Israel 2.20%
Netherlands 2.00%
Spain 2.00%
India 1.80%
China 1.60%
South Korea 1.30%
Cyprus 1.20%
Brazil 1.00%
Germany 1.00%

Market Capitalization

as a % of equity assets as of 3/31/2014

Large 42.9%
Medium 33.4%
Small 23.7%
Median Market Cap $2.3 bil
 

Portfolio Composition

as a % of net assets as of 3/31/2014

Domestic Common Stock 82.61%
Foreign Common Stock 15.82%
Cash and Cash Equivalents 1.58%

Sector Allocation

as a % of equity assets as of 3/31/2014

Information Technology 68.97%
Health Care 15.79%
Industrials 6.10%
Consumer Discretionary 4.54%
Materials 2.59%
Telecommunication Services 1.29%
Financials 0.71%

Country Allocation

as a % of equity assets as of 3/31/2014

United States 79.70%
Switzerland 3.30%
Bermuda 2.90%
Israel 2.20%
Netherlands 2.00%
Spain 2.00%
India 1.80%
China 1.60%
South Korea 1.30%
Cyprus 1.20%
Brazil 1.00%
Germany 1.00%

Market Capitalization

as a % of equity assets as of 3/31/2014

Large 42.9%
Medium 33.4%
Small 23.7%
Median Market Cap $2.3 bil
Risk Factors: As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the Portfolio's prospectus. Not all portfolios may be offered at all broker/ dealers.

Stylebox: The Morningstar Equity style box reveals a fund's investment strategy by displaying the fund's investment style and the market capitalization of the stocks owned.

Index Description: S&P North Ameri Tech Sector is an unmanaged index comprised of securities that represent the technology sector of the stock market. It is not possible to invest directly in an index.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

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.

Ivy VIP Science and Tech formerly known as W&R Target Science and Technology Portfolio.

Consider All Factors. As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not insured or guaranteed by the FDIC or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the portfolios's prospectus.

High recent returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

Annuity and life insurance guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. Variable investment options are subject to market risk, including loss of principal. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, management fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 59 1/2 may be subject to a 10% IRS tax penalty and surrender charges may apply.

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.

Alpha, Beta, R-Squared, Standard Deviation, Sharpe Ratio and Capture Ratio are 3 year statistics. Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of the fund's return to fluctuations in the market index. R-squared indicates how much of a fund's fluctuations were attributable to movements in the fund's benchmark. Standard deviation is a measure of how volatile a fund's returns are. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Morningstar Ratings: For each fund with at least a 3-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of all sales charges), placing emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund and rated separately.) A fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the share classes specified; other classes may have different performance characteristics.

Information is subject to change and is not intended to represent any past or future investment recommendations.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

Variable investment options are subject to market risk, including loss of principal, and are suitable for long-term investing, particularly for retirement. An investment in a Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 591/2 may be subject to a 10 percent IRS penalty in addition to taxes.

Ivy Funds VIPs are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies. They are not offered or made available directly to the public. Not all portfolios may be offered at all broker/dealer firms. Annuity guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. You can lose money by investing in a variable annuity.

Investors should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information, available by calling your financial advisor, clicking here or contacting the applicable insurance company. Please read the prospectuses or summary prospectuses carefully before investing.

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. Class A shares, including sales charges, reflects the maximum applicable front-end sales load.

View Quarterly Rates Of Return

Monthly Rates of Return

Average Annual Total Returns as of 3/31/2014

  YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV 0.39% 38.69% 19.43% 24.68% 13.59% 15.70%
Fund with 5.75% sales charge 0.39% 38.69% 19.43% 24.68% 13.59% 15.70%
S&P North American Technology TR 1.91% 27.07% 14.53% 22.42% 8.24%
Lipper Science & Technology Funds 1.97% 26.15% 10.98% 21.08% 7.51% N/A
SWIPE TO VIEW COMPLETE TABLE

Monthly Rates of Return

Average Annual Total Returns as of 3/31/2014

Fund at NAV
Fund with 5.75% sales charge
S&P North American Technology TR
Lipper Science & Technology Funds
YTD 1YR 3YR 5YR 10YR LIFE
0.39% 38.69% 19.43% 24.68% 13.59% 15.70%
0.39% 38.69% 19.43% 24.68% 13.59% 15.70%
1.91% 27.07% 14.53% 22.42% 8.24%
1.97% 26.15% 10.98% 21.08% 7.51% N/A
SWIPE TO VIEW COMPLETE TABLE

Quarterly Rates Of Return

Average Annual Total Returns as of 3/31/2014

Fund at NAV
Fund with 5.75% sales charge
S&P North American Technology TR
Lipper Science & Technology Funds
YTD 1YR 3YR 5YR 10YR LIFE
0.39% 38.69% 19.43% 24.68% 13.59% 15.70%
0.39% 38.69% 19.43% 24.68% 13.59% 15.70%
1.91% 27.07% 14.53% 22.42% 8.24%
1.97% 26.15% 10.98% 21.08% 7.51% N/A
SWIPE TO VIEW COMPLETE TABLE

Calendar Year Return

Previous Five Years
Class A
S&P North American Technology TR
2009 2010 2011 2012 2013
43.84 12.75 -5.77 27.83 56.38
63.19 12.65 -0.88 15.23 34.57
Previous Five Years 2009 2010 2011 2012 2013
Class A
S&P North American Technology TR
43.84 12.75 -5.77 27.83 56.38
63.19 12.65 -0.88 15.23 34.57

Morningstar Ratings

as of 3/31/2014

Category: Technology

Overall  out of 195
3 Year  out of 195
5 Year  out of 174
10 Year  out of 140
Ratings are based on risk-adjusted returns

Lipper Rankings

through 3/31/2014

Category: Science & Technology Funds

  RANK PERCENTILE
1 Year 1/37 3
3 Year 1/36 3
5 Year 6/36 17
10 Year 1/31 4
Rankings are based on average annual total returns, but do not consider sales charges.

Expense Ratios

as of 4/30/2013

Net 1.17%
Gross 1.17%
 

Lipper Rankings

through 3/31/2014

Category: Science & Technology Funds

  RANK PERCENTILE
1 Year 1/37 3
3 Year 1/36 3
5 Year 6/36 17
10 Year 1/31 4
Rankings are based on average annual total returns, but do not consider sales charges.

Expense Ratios

as of 4/30/2013

Net 1.17%
Gross 1.17%
Risk Factors: As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the Portfolio's prospectus. Not all portfolios may be offered at all broker/ dealers.

Stylebox: The Morningstar Equity style box reveals a fund's investment strategy by displaying the fund's investment style and the market capitalization of the stocks owned.

Index Description: S&P North Ameri Tech Sector is an unmanaged index comprised of securities that represent the technology sector of the stock market. It is not possible to invest directly in an index.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

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.

Ivy VIP Science and Tech formerly known as W&R Target Science and Technology Portfolio.

Consider All Factors. As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not insured or guaranteed by the FDIC or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the portfolios's prospectus.

High recent returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

Annuity and life insurance guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. Variable investment options are subject to market risk, including loss of principal. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, management fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 59 1/2 may be subject to a 10% IRS tax penalty and surrender charges may apply.

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.

Alpha, Beta, R-Squared, Standard Deviation, Sharpe Ratio and Capture Ratio are 3 year statistics. Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of the fund's return to fluctuations in the market index. R-squared indicates how much of a fund's fluctuations were attributable to movements in the fund's benchmark. Standard deviation is a measure of how volatile a fund's returns are. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Morningstar Ratings: For each fund with at least a 3-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of all sales charges), placing emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund and rated separately.) A fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the share classes specified; other classes may have different performance characteristics.

Information is subject to change and is not intended to represent any past or future investment recommendations.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

Variable investment options are subject to market risk, including loss of principal, and are suitable for long-term investing, particularly for retirement. An investment in a Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 591/2 may be subject to a 10 percent IRS penalty in addition to taxes.

Ivy Funds VIPs are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies. They are not offered or made available directly to the public. Not all portfolios may be offered at all broker/dealer firms. Annuity guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. You can lose money by investing in a variable annuity.

Investors should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information, available by calling your financial advisor, clicking here or contacting the applicable insurance company. Please read the prospectuses or summary prospectuses carefully before investing.

Historical Prices

Inception 4/4/1997

 

SELECT A DATE

Historical Distributions

Inception 4/4/1997

 

SELECT A DATE

Risk Factors: As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the Portfolio's prospectus. Not all portfolios may be offered at all broker/ dealers.

Stylebox: The Morningstar Equity style box reveals a fund's investment strategy by displaying the fund's investment style and the market capitalization of the stocks owned.

Index Description: S&P North Ameri Tech Sector is an unmanaged index comprised of securities that represent the technology sector of the stock market. It is not possible to invest directly in an index.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

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.

Ivy VIP Science and Tech formerly known as W&R Target Science and Technology Portfolio.

Consider All Factors. As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not insured or guaranteed by the FDIC or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the portfolios's prospectus.

High recent returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

Annuity and life insurance guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. Variable investment options are subject to market risk, including loss of principal. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, management fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 59 1/2 may be subject to a 10% IRS tax penalty and surrender charges may apply.

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.

Alpha, Beta, R-Squared, Standard Deviation, Sharpe Ratio and Capture Ratio are 3 year statistics. Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of the fund's return to fluctuations in the market index. R-squared indicates how much of a fund's fluctuations were attributable to movements in the fund's benchmark. Standard deviation is a measure of how volatile a fund's returns are. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Morningstar Ratings: For each fund with at least a 3-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of all sales charges), placing emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund and rated separately.) A fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the share classes specified; other classes may have different performance characteristics.

Information is subject to change and is not intended to represent any past or future investment recommendations.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

Variable investment options are subject to market risk, including loss of principal, and are suitable for long-term investing, particularly for retirement. An investment in a Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 591/2 may be subject to a 10 percent IRS penalty in addition to taxes.

Ivy Funds VIPs are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies. They are not offered or made available directly to the public. Not all portfolios may be offered at all broker/dealer firms. Annuity guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. You can lose money by investing in a variable annuity.

Investors should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information, available by calling your financial advisor, clicking here or contacting the applicable insurance company. Please read the prospectuses or summary prospectuses carefully before investing.

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Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
XBRL
Shafran Excels at Stock Picking
   
Risk Factors: As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the Portfolio's prospectus. Not all portfolios may be offered at all broker/ dealers.

Stylebox: The Morningstar Equity style box reveals a fund's investment strategy by displaying the fund's investment style and the market capitalization of the stocks owned.

Index Description: S&P North Ameri Tech Sector is an unmanaged index comprised of securities that represent the technology sector of the stock market. It is not possible to invest directly in an index.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

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.

Ivy VIP Science and Tech formerly known as W&R Target Science and Technology Portfolio.

Consider All Factors. As with any mutual fund, the value of the Portfolio's shares will change, and you could lose money on your investment. An investment in the Portfolio is not insured or guaranteed by the FDIC or any other government agency. Investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification. These and other risks are more fully described in the portfolios's prospectus.

High recent returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

Annuity and life insurance guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. Variable investment options are subject to market risk, including loss of principal. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, management fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 59 1/2 may be subject to a 10% IRS tax penalty and surrender charges may apply.

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.

Alpha, Beta, R-Squared, Standard Deviation, Sharpe Ratio and Capture Ratio are 3 year statistics. Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of the fund's return to fluctuations in the market index. R-squared indicates how much of a fund's fluctuations were attributable to movements in the fund's benchmark. Standard deviation is a measure of how volatile a fund's returns are. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Morningstar Ratings: For each fund with at least a 3-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of all sales charges), placing emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund and rated separately.) A fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the share classes specified; other classes may have different performance characteristics.

Information is subject to change and is not intended to represent any past or future investment recommendations.

The Ivy Funds VIP Portfolios, distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies.

Variable investment options are subject to market risk, including loss of principal, and are suitable for long-term investing, particularly for retirement. An investment in a Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 591/2 may be subject to a 10 percent IRS penalty in addition to taxes.

Ivy Funds VIPs are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies. They are not offered or made available directly to the public. Not all portfolios may be offered at all broker/dealer firms. Annuity guarantees are based on the financial strength and claims-paying ability of the issuing insurance company. The guarantees have no bearing on the performance of a variable investment option. You can lose money by investing in a variable annuity.

Investors should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information, available by calling your financial advisor, clicking here or contacting the applicable insurance company. Please read the prospectuses or summary prospectuses carefully before investing.