Fund Detail

Ivy Funds VIP Science and Technology

Class A Shares
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Fund Summary

Focused on growth. Rooted in innovation

Excellent track record
Strong historical results, managed by Zachary Shafran, with more than 20 years of experience.
Multiple, non-correlated sources of growth
Seeks opportunities within technology, health care, and applied science and technology.
Proven investment process
Built on a six-decade firm legacy of technology investing expertise

Morningstar Style Box

Value Blend Growth
Large
Medium
Small

Portfolio Management

  • Zachary H. Shafran

    • — Waddell & Reed Investment Management Company
    • — 14 Years with Fund
    • — 26 Years in Industry

Growth of a $10,000 Investment through 3/31/2015

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.

Documents

Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
XBRL

Daily Prices as of 4/24/2015

Net Asset Value (NAV) $26.97
Daily NAV Change ($0.18) -0.70%
Weekly NAV Change $0.37 1.42%
Public Offering Price (POP) $26.97

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 3/31/2015)
$609.6 mil
Total Equity Holdings
(as of 3/31/2015)
63
Total Holdings
(as of 3/31/2015)
69
Portfolio Turnover Rate
(as of 12/31/2014)
29%
Lipper Category Science & Technology Funds
Morningstar Category Technology
Benchmarks S&P North American Technology TR

Fund Performance

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.

Monthly Rates of Return Average Annual Total Returns as of 3/31/2015

YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV 5.26% 7.91% 21.70% 17.80% 13.46% 15.25%
Fund with 5.75% sales charge 5.26% 7.91% 21.70% 17.80% 13.46% 15.25%
S&P North American Technology TR 1.49% 14.81% 14.91% 14.62% 10.31% 8.10%
Lipper Science & Technology Funds 3.13% 13.31% 13.30% 13.70% 9.34% N/A

Quarterly Rates of Return Average Annual Total Returns as of 3/31/2015

YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV 5.26% 7.91% 21.70% 17.80% 13.46% 15.25%
Fund with 5.75% sales charge 5.26% 7.91% 21.70% 17.80% 13.46% 15.25%
S&P North American Technology TR 1.49% 14.81% 14.91% 14.62% 10.31% 8.10%
Lipper Science & Technology Funds 3.13% 13.31% 13.30% 13.70% 9.34% N/A

Calendar Year Return

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Class A 17.24 7.87 24.37 -33.89 43.84 12.75 -5.77 27.83 56.38 2.91
S&P North American Technology TR 2.02 8.98 16.94 -43.33 63.19 12.65 -0.88 15.23 34.57 15.28

Morningstar Ratings as of 3/31/2015

Category: Technology

Overall out of 194 ★★★★★
3 Year out of 194 ★★★★★
5 Year out of 186 ★★★★★
10 Year out of 147 ★★★★★

Ratings are based on risk-adjusted returns

Lipper Ranking through 3/31/2015

Category: Science & Technology Funds

  Rank Percentile
1 Year 28 /34 80
3 Year 1 /33 3
5 Year 1 /33 3
10 Year 1 /29 4

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

Expense Ratios as of 4/30/2014

Net 1.16%
Gross 1.16%

Standard Deviation as of 3/31/2015

Fund 12.63
S&P North American Technology TR 15.58

Risk Values as of 3/31/2015

Alpha 8.13
Beta 0.85
R-Squared 65.60
Sharpe Ratio 1.71
Capture Ratio

Upside: 112.42%

Downside: 76.38%

Growth of a $10,000 Investment through 3/31/2015

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.

Fund Distributions

Historical Prices Inception 4/4/1997

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 4/4/1997

Ex-date Income Capital Gains Reinvest Gains Payment Date

*Special Dividend
The table includes the daily prices at NAV (net asset value) for the history of this fund's selected share class. NAV is the amount per share you would receive if you sold shares that day.

Fund Documents

Top 10 Equity Holdings as a % of net assets as of 3/31/2015

Micron Technology, Inc. Micron Technology, Inc., engages in the manufacture and marketing of semiconductor devices worldwide. 6.6%
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. 5.3%
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. 4.2%
Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals Incorporated engages in the discovery, development, and commercialization of small molecule drugs for the treatment of serious diseases worldwide. 4.2%
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. 3.6%
Isis Pharmaceuticals, Inc. U.S. pharmaceutical company focused on discovery and development of drugs, particluarly in the area of genomics and RNA-targeted technologies. 3.3%
iGATE Corp. iGATE Corporation (iGATE), through its operating subsidiaries, is a provider of information technology (IT) and IT- enabled operations offshore outsourcing services to large and medium-sized organizations. 3.2%
NXP Semiconductors N.V. NXP Semiconductors N.V. provides high performance mixed signal and standard product solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide. 3.1%
ACI Worldwide, Inc. ACI Worldwide, Inc. engages in the development, marketing, installation, and support of software products and services to facilitate electronic payments worldwide. 2.9%
Cerner Corp. Cerner Corporation (Cerner) is a supplier of healthcare information technology (HIT) solutions, healthcare devices and related services. Cerner solutions optimize processes for healthcare organizations. 2.8%
Total Portfolio Holdings DOWNLOAD
updated quarterly, upon availability

Market Capitalization

as a % of equity assets as of 3/31/2015
Large 39.8%
Medium 41.5%
Small 18.7%
Median Market Cap (as of 3/31/2015) $3.2 bil

Sector Allocation as a % of equity assets as of 3/31/2015

Information Technology 67.92%
Health Care 18.93%
Industrials 5.24%
Consumer Discretionary 3.76%
Telecommunication Services 1.95%
Utilities 0.82%
Financials 0.81%
Materials 0.56%

Portfolio Composition as a % of net assets as of 3/31/2015

Domestic Common Stock 76.30%
Foreign Common Stock 18.95%
Cash and Cash Equivalents 4.75%

Country Allocation as a % of equity assets as of 3/31/2015

United States 80.10%
Israel 3.80%
Netherlands 3.30%
China 2.60%
India 2.50%
Spain 2.40%
United Kingdom 2.00%
Bermuda 1.30%
Germany 1.10%
Cyprus 0.90%

Total Portfolio Holdings

DOWNLOAD updated quarterly, upon availability

Fund Documents

Documents

Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
XBRL

Additional Fund Literature

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Risk Factors: As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment. Because the Portfolio invests more than 25% of its total assets in the science and technology industry, the Portfolio’s performance may be more susceptible to a single economic, regulatory or technological occurrence than a portfolio that does not concentrate its investments in this industry. Securities of companies within specific industries or sectors of the economy may periodically perform differently than the overall market. In addition, the Porfolio’s performance may be more volatile than an investment in a portfolio of broad market securities and may underperform the market as a whole, due to the relatively limited number of issuers of science and technology related securities. Investment risks associated with investing in science and technology securities, in addition to other risks, include: operating in rapidly changing fields, abrupt or erratic market movements, limited product lines, markets or financial resources, management that is dependent on a limited number of people, short product cycles, aggressive pricing of products and services, new market entrants and obsolescence of existing technology. These and other risks are more fully described in the Portfolio’s prospectus.

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.

The S&P North American Technology Sector Index is an unmanaged index comprised of U.S. securities classified under the GICS® technology sector and internet retail sub-industry. 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 5-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 the degree to which a fund’s return varies from its previous returns or from the average of all similar funds, generally expressed as a percentage. The larger the standard deviation, the greater the likelihood (and risk) that a security’s performance will fluctuate from the average return. 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.

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.

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.