-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TmrjAHxsCf+UVw7TUn5hXOOQsMa2WTQWSDkm3kK6Gwia/5ZrwyLqmnxgpsXu4Jyg vKtFZ84onxz7FjwCbPeMqw== 0001105607-09-000161.txt : 20090827 0001105607-09-000161.hdr.sgml : 20090827 20090827150953 ACCESSION NUMBER: 0001105607-09-000161 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090630 FILED AS OF DATE: 20090827 DATE AS OF CHANGE: 20090827 EFFECTIVENESS DATE: 20090827 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IVY FUNDS INC CENTRAL INDEX KEY: 0000883622 IRS NUMBER: 481112076 STATE OF INCORPORATION: MD FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06569 FILM NUMBER: 091039346 BUSINESS ADDRESS: STREET 1: 6300 LAMAR AVE CITY: OVERLAND PARK STATE: KS ZIP: 66202 BUSINESS PHONE: 9132362000 MAIL ADDRESS: STREET 1: P O BOX 29217 CITY: SHAWNEE MISSION STATE: KS ZIP: 66201-9217 FORMER COMPANY: FORMER CONFORMED NAME: W&R FUNDS INC DATE OF NAME CHANGE: 20000829 FORMER COMPANY: FORMER CONFORMED NAME: WADDELL & REED FUNDS INC DATE OF NAME CHANGE: 19920717 0000883622 S000006283 Ivy Asset Strategy Fund C000017255 Class A WASAX C000017256 Class B WASBX C000017257 Class C WASCX C000017258 Class Y WASYX C000043898 Class E C000045541 Class I C000066833 Class R shares 0000883622 S000006284 Ivy Municipal Bond Fund C000017259 Class A WMBAX C000017260 Class B WMBBX C000017261 Class C WMBCX C000017262 Class Y WMBYX 0000883622 S000006285 Ivy Science and Technology Fund C000017263 Class R C000017264 Class A WSTAX C000017265 Class B WSTBX C000017266 Class C WSTCX C000017267 Class Y WSTYX C000043899 Class E C000045542 Class I 0000883622 S000006286 Ivy Small Cap Growth Fund C000017268 Class R C000017269 Class A WSGAX C000017270 Class B WSGBX C000017271 Class C WRGCX C000017272 Class Y WSCYX C000043900 Class E C000045543 Class I 0000883622 S000006287 Ivy Capital Appreciation Fund C000017273 Class A WMEAX C000017274 Class B WMEBX C000017275 Class C WMECX C000017276 Class Y WMEYX C000043901 Class E C000045544 Class I 0000883622 S000006288 Ivy Core Equity Fund C000017277 Class A WCEAX C000017278 Class B WCEBX C000017279 Class C WTRCX C000017280 Class Y WCEYX C000043902 Class E C000045545 Class I 0000883622 S000006289 Ivy High Income Fund C000017281 Class A WHIAX C000017282 Class B WHIBX C000017283 Class C WRHIX C000017284 Class Y WHIYX C000043903 Class E C000045546 Class I 0000883622 S000006291 Ivy Large Cap Growth Fund C000017289 Class R C000017290 Class A WLGAX C000017291 Class B WLGBX C000017292 Class C WLGCX C000017293 Class Y WLGYX C000043904 Class E C000045547 Class I 0000883622 S000006292 Ivy Limited-Term Bond Fund C000017294 Class A WLTAX C000017295 Class B WLTBX C000017296 Class C WLBCX C000017297 Class Y WLTYX C000043905 Class E C000045548 Class I 0000883622 S000006293 Ivy Mid Cap Growth Fund C000017298 Class R C000017299 Class A WMGAX C000017300 Class B WMGBX C000017301 Class C WMGCX C000017302 Class Y WMGYX C000043906 Class E C000045549 Class I 0000883622 S000006294 Ivy Money Market Fund C000017303 Class A WRAXX C000017304 Class B WRBXX C000017305 Class C WRCXX C000043907 Class E 0000883622 S000011242 Ivy Energy Fund C000030961 Class A IEYAX C000030962 Class B IEYBX C000030963 Class C IEYCX C000030964 Class Y IEYYX C000043908 Class E C000045550 Class I 0000883622 S000025600 Ivy Municipal High Income Fund C000076687 Class A C000076688 Class B C000076689 Class C C000076690 Class I C000076691 Class Y 0000883622 S000025601 Ivy Tax-Managed Equity Fund C000076692 Class Y C000076693 Class A C000076694 Class B C000076695 Class C C000076696 Class I N-Q 1 ifi_nqmainpart.htm N-Q
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
 

FORM N-Q
 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 

Investment Company Act file number: 811-6569
 

Ivy Funds, Inc.

------------------------------------------------------------------------------

(Exact name of registrant as specified in charter)
 
 

6300 Lamar Avenue, Overland Park, Kansas 66202

------------------------------------------------------------------------------

(Address of principal executive offices) (Zip code)
 
 

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

------------------------------------------------------------------------------

(Name and address of agent for service)
 

Registrant's telephone number, including area code: 913-236-2000
 

Date of fiscal year end: March 31
 

Date of reporting period: June 30, 2009
 
 
 

ITEM 1. SCHEDULE OF INVESTMENTS.

 



SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)

COMMON STOCKS
Shares
Value
  
Automobile Manufacturers - 1.50%    
 
 
Hyundai Motor Company (A)
 
 
3,531
 
 
$
205,383
 
 
 
 
 
 
Biotechnology - 1.57%    
 
 
Gilead Sciences, Inc. (B)
 
 
4,624
 
 
 
216,608
 
 
 
 
 
 
Casinos & Gaming - 1.13%    
 
 
Wynn Resorts, Limited (B)
 
 
4,421
 
 
 
156,068
 
 
 
 
 
 
Coal & Consumable Fuels - 2.11%    
 
 
China Shenhua Energy Company Limited, H Shares (A)
 
 
78,798
 
 
 
290,278
 
 
 
 
 
 
Communications Equipment - 5.66%    
 
 
QUALCOMM Incorporated
 
 
11,659
 
 
 
526,987
 
Reliance Communication Ventures Limited (A)
 
 
19,098
 
 
 
115,396
 
Telefonaktiebolaget LM Ericsson, B Shares (A)
 
 
13,908
 
 
 
136,469
 
 
 
 
 

778,852
 
Construction & Engineering - 3.55%    
 
 
China Communications Construction Company Limited,
      H Shares (A)
179,476
 
 
 
209,812
 
Larsen & Toubro Limited (A)
 
 
8,545
 
 
 
279,638
 
 
 
 
 

489,450
 
Data Processing & Outsourced Services - 2.77%    
 
 
Redecard S.A. (A)(C)
 
 
1,454
 
 
 
22,262
 
Redecard S.A. (A)
 
 
5,954
 
 
 
91,148
 
Visa Inc., Class A
 
 
4,293
 
 
 
267,283
 
 
 
 
 

380,693
 
Diversified Banks - 11.74%    
 
 
Barclays PLC (A)(C)
 
 
19,727
 
 
 
91,847
 
Cia Brasileira de Meios de Pagamento (A)(B)(D)
 
 
4,150
 
 
 
35,686
 
HDFC Bank Limited (A)
 
 
3,313
 
 
 
103,269
 
ICICI Bank Limited (A)
 
 
10,324
 
 
 
155,646
 
Industrial and Commercial Bank of China (Asia) Limited (A)
874,771
 
 
 
609,513
 
Industrial and Commercial Bank of China Limited,
      H Shares (A)(C)
288,670
 
 
 
201,137
 
Standard Chartered PLC (A)
 
 
15,681
 
 
 
294,092
 
State Bank of India (A)
 
 
3,389
 
 
 
123,478
 
 
 
 
 

1,614,668
 
Diversified Capital Markets - 0.44%    
 
 
UBS AG (A)(B)(D)
 
 
5,000
 
 
 
61,157
 
 
 
 
 
 
Diversified Metals & Mining - 2.69%    
 
 
Southern Copper Corporation
 
 
10,050
 
 
 
205,423
 
Xstrata plc (A)
 
 
15,256
 
 
 
164,982
 
 
 
 
 

370,405
 
Education Services - 0.82%    
 
 
New Oriental Education & Technology Group Inc., ADR (B)
 
 
1,683
 
 
 
113,393
 
 
 
 
 
 
Fertilizers & Agricultural Chemicals - 3.96%    
 
 
Monsanto Company
 
 
7,339
 
 
 
545,566
 
 
 
 
 
 
Footwear - 0.72%    
 
 
NIKE, Inc., Class B
 
 
1,911
 
 
 
98,972
 
 
 
 
 
 
Heavy Electrical Equipment - 0.82%    
 
 
ALSTOM (A)
 
 
1,909
 
 
 
112,606
 
 
 
 
 
 
Hotels, Resorts & Cruise Lines - 0.43%    
 
 
Ctrip.com International, Ltd. (B)
 
 
1,282
 
 
 
59,377
 
 
 
 
 
 
Household Products - 0.51%    
 
 
Reckitt Benckiser Group plc (A)
 
 
1,556
 
 
 
70,812
 
 
 
 
 
 
Integrated Oil & Gas - 2.91%    
 
 
China Petroleum & Chemical Corporation, H Shares (A)
161,120
 
 
 
122,866
 
TOTAL S.A. (A)
 
 
5,134
 
 
 
277,169
 
 
 
 
 

400,035
 
Life & Health Insurance - 4.44%    
 
 
China Life Insurance Company Limited, H Shares (A)
151,992
 
 
 
558,935
 
Ping An Insurance (Group) Company of China, Ltd.,
      H Shares (A)
 
 
7,448
 
 
 
50,406
 
 
 
 
 

609,341
 
Mortgage REITs - 0.99%    
 
 
Annaly Capital Management, Inc.
 
 
9,044
 
 
 
136,921
 
 
 
 
 
 
Oil & Gas Equipment & Services - 3.47%    
 
 
Halliburton Company
 
 
4,460
 
 
 
92,326
 
Schlumberger Limited
 
 
2,381
 
 
 
128,830
 
Weatherford International Ltd. (B)
 
 
13,117
 
 
 
256,577
 
 
 
 
 

477,733
 
Oil & Gas Exploration & Production - 2.81%    
 
 
CNOOC Limited (A)
 
 
86,588
 
 
 
107,368
 
Devon Energy Corporation
 
 
3,011
 
 
 
164,106
 
XTO Energy Inc.
 
 
3,039
 
 
 
115,895
 
 
 
 
 

387,369
 
Personal Products - 0.69%    
 
 
Hengan International Group Company Limited (A)
 
 
20,405
 
 
 
95,573
 
 
 
 
 
 
Real Estate Development - 1.35%    
 
 
China Overseas Land & Investment Limited (A)
 
 
80,273
 
 
 
186,439
 
 
 
 
 
 
Real Estate Management & Development - 0.75%    
 
 
DLF Limited (A)
 
 
15,894
 
 
 
103,119
 
 
 
 
 
 
Regional Banks - 1.12%    
 
 
China Construction Bank Corporation (A)
197,962
 
 
 
153,515
 
 
 
 
 
 
Semiconductors - 5.43%    
 
 
MediaTek Incorporation (A)
 
 
3,096
 
 
 
36,990
 
PMC-Sierra, Inc. (B)(E)
 
 
18,126
 
 
 
144,285
 
Taiwan Semiconductor Manufacturing Company Ltd. (A)
339,313
 
 
 
565,694
 
 
 
 
 

746,969
 
Specialized Finance - 2.08%    
 
 
BM&F BOVESPA S.A. - Bolsa de Valores, Mercadoriase
      Futuros (A)(D)
 
 
1,044
 
 
 
6,233
 
CME Group Inc.
 
 
452
 
 
 
140,653
 
Hong Kong Exchanges and Clearing Limited (A)
 
 
8,989
 
 
 
139,989
 
 
 
 
 

286,875
 
Thrifts & Mortgage Finance - 0.75%    
 
 
HOUSING DEVELOPMENT FINANCE CORPORATION
      LIMITED (A)
 
 
2,121
 
 
 
103,792
 
 
 
 
 
 
Tobacco - 1.16%    
 
 
Philip Morris International Inc.
 
 
3,627
 
 
 
158,201
 
 
 
 
 
 
TOTAL COMMON STOCKS - 68.37%
$
9,410,170
  
(Cost: $8,472,307)
 
 
 
 
 
 
 
INVESTMENT FUNDS - 0.03%
 
Multiple Industry    
 
 
Vietnam Azalea Fund Limited (B)(F)(G)
 
 
1,100
 
 
$
4,114
 
(Cost: $7,268)
 
 
 
 
 
 
 
 
 
 
     
CORPORATE DEBT SECURITIES
Principal
 
Banking - 0.01%
 
 
 
 
 
 
Banco BMG S.A.,
 
 
 
 
 
 
      8.750%, 7-1-10 (C)
 
$1,333
 
 
 
1,337
 
 
 
 
 
 
Beverage / Bottling - 0.10%
 
 
 
 
 
 
AmBev International Finance Co. Ltd.,
 
 
 
 
 
 
      9.500%, 7-24-17 (H)
BRL12,000
 
 
 
5,665
 
Anheuser-Busch InBev Worldwide Inc.,
 
 
 
 
 
 
      7.200%, 1-15-14 (D)
 
$7,800
 
 
 
8,389
 
 
 
 
 

14,054
 
Biotechnology - 0.03%
 
 
 
 
 
 
Amgen Inc., Convertible,
 
 
 
 
 
 
      0.125%, 2-1-11
 
 
3,850
 
 
 
3,658
 
 
 
 
 
 
Building Products - 0.01%
 
 
 
 
 
 
Desarrolladora Homex, S.A. de C.V.,
 
 
 
 
 
 
      7.500%, 9-28-15
 
 
900
 
 
 
774
 
 
 
 
 
 
Coal & Consumable Fuels - 0.02%
 
 
 
 
 
 
Massey Energy Company, Convertible,
 
 
 
 
 
 
      3.250%, 8-1-15
 
 
3,850
 
 
 
2,541
 
 
 
 
 
 
Computer Hardware - 0.04%
 
 
 
 
 
 
Electronic Data Systems Corporation,
 
 
 
 
 
 
      7.125%, 10-15-09
 
 
5,500
 
 
 
5,581
 
 
 
 
 
 
Consumer Finance - 0.11%
 
 
 
 
 
 
American Express Travel Related Services Co., Inc.,
 
 
 
 
 
 
      5.250%, 11-21-11 (D)
 
 
15,600
 
 
 
15,508
 
 
 
 
 
 
Consumer Products - 0.01%
 
 
 
 
 
 
Staples, Inc.,
 
 
 
 
 
 
      7.750%, 4-1-11
 
 
691
 
 
 
731
 
 
 
 
 
 
Consumer Products / Tobacco - 0.00%
 
 
 
 
 
 
Central European Distribution Corporation,
 
 
 
 
 
 
      8.000%, 7-25-12 (D)(H)
EUR320
 
 
 
379
 
 
 
 
 
 
Department Stores - 0.12%
 
 
 
 
 
 
Kohl's Corporation,
 
 
 
 
 
 
      6.300%, 3-1-11
 
$15,400
 
 
 
16,035
 
 
 
 
 
 
Diversified Chemicals - 0.01%
 
 
 
 
 
 
E.I. du Pont de Nemours and Company,
 
 
 
 
 
 
      5.875%, 1-15-14
 
 
1,825
 
 
 
1,977
 
 
 
 
 
 
Diversified Metals & Mining - 0.09%
 
 
 
 
 
 
BHP Billiton Finance (USA) Limited,
 
 
 
 
 
 
      5.500%, 4-1-14
 
 
11,675
 
 
 
12,530
 
 
 
 
 
 
Electric Utilities - 0.29%
 
 
 
 
 
 
Allegheny Energy Supply Company, LLC,
 
 
 
 
 
 
      7.800%, 3-15-11
 
 
38,650
 
 
 
39,991
 
 
 
 
 
 
Finance - Other - 0.14%
 
 
 
 
 
 
AXA Financial, Inc.,
 
 
 
 
 
 
      7.750%, 8-1-10
 
 
10,840
 
 
 
10,870
 
Block Financial LLC,
 
 
 
 
 
 
      7.875%, 1-15-13
 
 
5,390
 
 
 
5,841
 
Western Union Company (The),
 
 
 
 
 
 
      6.500%, 2-26-14
 
 
1,920
 
 
 
2,050
 
 
 
 
 

18,761
 
Finance Companies - 0.04%
 
 
 
 
 
 
C5 Capital (SPV) Limited,
 
 
 
 
 
 
      6.196%, 12-31-49 (C)(I)
 
 
10,750
 
 
 
5,704
 
Toyota Motor Credit Corporation,
 
 
 
 
 
 
      1.120%, 1-18-15 (I)
 
 
325
 
 
 
315
 
 
 
 
 

6,019
 
Forest Products - 0.03%
 
 
 
 
 
 
Sino-Forest Corporation:
 
 
 
 
 
 
      9.125%, 8-17-11
 
 
4,000
 
 
 
4,000
 
      9.125%, 8-17-11 (C)
 
 
700
 
 
 
700
 
 
 
 
 

4,700
 
Gas - Local Distribution - 0.10%
 
 
 
 
 
 
DCP Midstream, LLC,
 
 
 
 
 
 
      9.700%, 12-1-13 (C)
 
 
12,020
 
 
 
13,254
 
 
 
 
 
 
Gas Pipe Lines - 0.35%
 
 
 
 
 
 
Duke Capital Corporation,
 
 
 
 
 
 
      7.500%, 10-1-09
 
 
23,685
 
 
 
23,953
 
Enterprise Products Operating LLC,
 
 
 
 
 
 
      9.750%, 1-31-14
 
 
21,510
 
 
 
24,735
 
 
 
 
 

48,688
 
General Merchandise Stores - 0.06%
 
 
 
 
 
 
Dollar General Corporation,
 
 
 
 
 
 
      11.875%, 7-15-17
 
 
7,850
 
 
 
8,478
 
 
 
 
 
 
Home Improvement Retail - 0.11%
 
 
 
 
 
 
Home Depot, Inc. (The),
 
 
 
 
 
 
      5.200%, 3-1-11
 
 
14,790
 
 
 
15,310
 
 
 
 
 
 
Integrated Telecommunication Services - 0.09%
 
 
 
 
 
 
AT&T Inc.,
 
 
 
 
 
 
      4.850%, 2-15-14
 
 
12,320
 
 
 
12,783
 
 
 
 
 
 
Metals / Mining - 0.03%
 
 
 
 
 
 
Vedanta Resources plc:
 
 
 
 
 
 
      6.625%, 2-22-10
 
 
3,500
 
 
 
3,465
 
      6.625%, 2-22-10 (C)
 
 
550
 
 
 
545
 
 
 
 
 

4,010
 
Movies & Entertainment - 0.03%
 
 
 
 
 
 
Viacom Inc.,
 
 
 
 
 
 
      5.625%, 8-15-12
 
 
4,160
 
 
 
4,103
 
 
 
 
 
 
Office Electronics - 0.23%
 
 
 
 
 
 
Xerox Corporation:
 
 
 
 
 
 
      6.875%, 8-15-11
 
 
5,460
 
 
 
5,651
 
      5.500%, 5-15-12
 
 
13,090
 
 
 
13,057
 
      7.625%, 6-15-13
 
 
6,160
 
 
 
6,206
 
      6.400%, 3-15-16
 
 
3,900
 
 
 
3,588
 
      6.750%, 2-1-17
 
 
3,900
 
 
 
3,549
 
 
 
 
 

32,051
 
Oil & Gas Exploration & Production - 0.05%
 
 
 
 
 
 
XTO Energy Inc.,
 
 
 
 
 
 
      5.900%, 8-1-12
 
 
6,400
 
 
 
6,785
 
 
 
 
 
 
Paper / Forest Products - 0.01%
 
 
 
 
 
 
Kimberly-Clark de Mexico, S.A. de C.V.,
 
 
 
 
 
 
      8.875%, 8-1-09 (D)
 
 
1,500
 
 
 
1,506
 
 
 
 
 
 
Pharmaceuticals - 1.03%
 
 
 
 
 
 
Eli Lilly and Company,
 
 
 
 
 
 
      3.550%, 3-6-12
 
 
15,500
 
 
 
16,059
 
Pfizer Inc.,
 
 
 
 
 
 
      4.450%, 3-15-12
120,150
 
 
 
126,080
 
 
 
 
 

142,139
 
Property & Casualty Insurance - 0.21%
 
 
 
 
 
 
Berkshire Hathaway Finance Corporation,
 
 
 
 
 
 
      4.000%, 4-15-12 (C)
 
 
25,300
 
 
 
26,150
 
St. Paul Companies, Inc. (The),
 
 
 
 
 
 
      8.125%, 4-15-10
 
 
2,900
 
 
 
3,024
 
 
 
 
 

29,174
 
Retail Stores - Other - 0.12%
 
 
 
 
 
 
Best Buy Co., Inc.,
 
 
 
 
 
 
      6.750%, 7-15-13
 
 
16,595
 
 
 
17,184
 
 
 
 
 
 
Service - Other - 0.04%
 
 
 
 
 
 
Expedia, Inc.,
 
 
 
 
 
 
      8.500%, 7-1-16 (C)
 
 
3,925
 
 
 
3,768
 
Waste Management, Inc.,
 
 
 
 
 
 
      6.375%, 3-11-15
 
 
2,255
 
 
 
2,337
 
 
 
 
 

6,105
 
Soft Drinks - 0.06%
 
 
 
 
 
 
Coca-Cola Enterprises Inc.,
 
 
 
 
 
 
      7.375%, 3-3-14
 
 
6,650
 
 
 
7,610
 
 
 
 
 
 
Specialized Finance - 0.20%
 
 
 
 
 
 
CME Group Inc.,
 
 
 
 
 
 
      5.750%, 2-15-14
 
 
25,630
 
 
 
27,343
 
 
 
 
 
 
Technology - 0.07%
 
 
 
 
 
 
L-3 Communications Corporation:
 
 
 
 
 
 
      7.625%, 6-15-12
 
 
6,240
 
 
 
6,255
 
      6.125%, 7-15-13
 
 
3,120
 
 
 
2,941
 
 
 
 
 

9,196
 
Trading Companies & Distributors - 0.12%
 
 
 
 
 
 
Noble Group Limited:
 
 
 
 
 
 
      8.500%, 5-30-13 (C)
 
 
13,900
 
 
 
13,204
 
      8.500%, 5-30-13
 
 
2,200
 
 
 
2,090
 
 
 
 
 

15,294
 
Transportation - Other - 0.10%
 
 
 
 
 
 
Ultrapetrol (Bahamas) Limited,
 
 
 
 
 
 
      9.000%, 11-24-14
 
 
16,310
 
 
 
13,415
 
 
 
 
 
 
Utilities - 0.15%
 
 
 
 
 
 
CESP - Companhia Energetica de Sao Paulo,
 
 
 
 
 
 
      9.750%, 1-15-15 (D)(H)
BRL23,100
 
 
 
12,134
 
Compania de Transporte de Energia Electrica en
      Alta Tension TRANSENER S.A.:
 
 
 
 
 
 
      8.875%, 12-15-16
 
$3,350
 
 
 
2,278
 
      8.875%, 12-15-16 (C)
 
 
3,000
 
 
 
2,040
 
Duke Energy Field Services, LLC,
 
 
 
 
 
 
      7.875%, 8-16-10
 
 
3,900
 
 
 
4,079
 
 
 
 
 

20,531
 
Wireless Telecommunication Service - 0.13%
 
 
 
 
 
 
Verizon Wireless Capital LLC,
 
 
 
 
 
 
      7.375%, 11-15-13 (D)
 
 
15,400
 
 
 
17,230
 
 
 
 
 


 
TOTAL CORPORATE DEBT SECURITIES - 4.34%
$
596,765
  
(Cost: $573,641)
 
 
 
 
 
 
 
MUNICIPAL BONDS
 
California - 0.08%
 
 
 
 
 
 
California Pollution Control Financing Authority, Variable Rate
      Demand Solid Waste Disposal Revenue Bonds (Waste
      Management, Inc. Project), Series 2003A,
 
 
 
 
 
 
      5.000%, 11-1-38
 
 
11,590
 
 
 
11,661
 
 
 
 
 
 
Florida - 0.06%
 
 
 
 
 
 
Miami-Dade County Industrial Development Authority, Solid
      Waste Disposal Revenue Bonds (Waste Management Inc.
      of Florida Project), Series 2008,
 
 
 
 
 
 
      5.400%, 8-1-23
 
 
7,725
 
 
 
7,698
 
 
 
 
 
 
New Hampshire - 0.17%
 
 
 
 
 
 
Business Finance Authority of the State of New Hampshire,
      Pollution Control Refunding Revenue Bonds (The United
      Illuminating Company Project-1997 Series A):
 
 
 
 
 
 
      7.125%, 7-1-27
 
 
15,450
 
 
 
15,756
 
      6.875%, 12-1-29
 
 
7,725
 
 
 
7,812
 
 
 
 
 

23,568
 
New York - 0.03%
 
 
 
 
 
 
The Port Authority of New York and New Jersey, Consolidated
      Bonds, One Hundred Fifty-Second Series,
 
 
 
 
 
 
      5.750%, 11-1-30
 
 
3,880
 
 
 
3,960
 
 
 
 
 
 
Ohio - 0.13%
 
 
 
 
 
 
Ohio Air Quality Development Authority, State of Ohio,
      Air Quality Revenue Bonds (Ohio Power Company Project),
      Series 2008A,
 
 
 
 
 
 
      7.125%, 6-1-41
 
 
17,385
 
 
 
17,734
 
 
 
 
 
 
Texas - 0.11%
 
 
 
 
 
 
Frisco Independent School District (Collin and Denton Counties,
      Texas), Unlimited Tax School Building Bonds, Series 2008A,
 
 
 
 
 
 
      6.000%, 8-15-38
 
 
7,765
 
 
 
8,404
 
Port of Houston Authority of Harris County, Texas, Unlimited
      Tax Refunding Bonds, Series 2008A,
 
 
 
 
 
 
      5.625%, 10-1-38
 
 
7,765
 
 
 
6,991
 
 
 
 
 

15,395
 
West Virginia - 0.14%
 
 
 
 
 
 
West Virginia Economic Development Authority, Solid Waste
      Disposal Facilities Revenue Bonds (Appalachian Power
      Company - Amos Project), Series 2008E,
 
 
 
 
 
 
      7.125%, 12-1-38
 
 
19,320
 
 
 
19,695
 
 
 
 
 


 
TOTAL MUNICIPAL BONDS - 0.72%
$
99,711
  
(Cost: $95,429)
 
 
 
 
 
 
 

PUT OPTIONS - 1.60%
Number of
Contracts
  
Hang Seng Index:
 
 
 
 
 
 
      Sep HKD17,400.00, Expires 9-29-09 (H)
 
 
20
 
 
 
126,021
 
      Sep HKD17,600.00, Expires 9-29-09 (H)
 
 
7
 
 
 
44,146
 
S&P 500 Index:
 
 
 
 
 
 
      Aug $825.00, Expires 8-24-09
 
 
19
 
 
 
17,731
 
      Aug $850.00, Expires 8-24-09
 
 
10
 
 
 
13,250
 
      Aug $900.00, Expires 8-24-09
 
 
7
 
 
 
18,740
 
(Cost: $434,184)
 
 
 
 
$
219,888
 
 
 
 
 
 
SENIOR LOANS
Principal
   
Health Care Facilities - 0.04%
 
 
 
 
 
 
HCA Inc.,
 
 
 
 
 
 
      2.848%, 11-18-13 (I)
 
$5,363
 
 
 
4,838
 
 
 
 
 
 
Service - Other - 0.09%
 
 
 
 
 
 
Education Management LLC,
 
 
 
 
 
 
      2.375%, 6-1-13 (I)
 
 
13,548
 
 
 
12,443
 
 
 
 
 
 
Utilities - 0.04%
 
 
 
 
 
 
Energy Future Competitive Holdings Company and Texas
      Competitive Electric Holdings Company, LLC:
 
 
 
 
 
 
      3.810%, 10-10-14 (I)
 
 
59
 
 
 
42
 
      3.821%, 10-10-14 (I)
 
 
7,731
 
 
 
5,518
 
 
 
 
 

5,560
 
 
TOTAL SENIOR LOANS - 0.17%
$
22,841
  
(Cost: $20,066)
 
 
 
 
 
 
 
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
 
Agency Obligations - 0.92%    
 
 
Federal Home Loan Mortgage Corporation,
 
 
 
 
 
 
      2.125%, 3-16-11
 
 
77,400
 
 
 
78,012
 
Federal National Mortgage Association:
 
 
 
 
 
 
      2.050%, 4-1-11
 
 
38,700
 
 
 
38,953
 
      2.875%, 12-11-13
 
 
10,275
 
 
 
10,364
 
 
 
 
 

127,329
 
Mortgage-Backed Obligations - 0.09%    
 
 
Federal Home Loan Mortgage Corporation Agency
      REMIC/CMO (Interest Only): (J)
 
 
 
 
 
 
      4.500%, 8-15-17
 
 
2,948
 
 
 
120
 
      5.500%, 9-15-17
 
 
3,194
 
 
 
268
 
      5.000%, 11-15-17
 
 
1,569
 
 
 
113
 
      5.000%, 5-15-18
 
 
3,270
 
 
 
367
 
      5.000%, 4-15-19
 
 
279
 
 
 
22
 
      5.000%, 4-15-19
 
 
135
 
 
 
10
 
      5.000%, 7-15-21
 
 
24
 
 
 
––
*
      5.000%, 11-15-22
 
 
354
 
 
 
25
 
      5.500%, 3-15-23
 
 
2,584
 
 
 
263
 
      5.000%, 4-15-23
 
 
28
 
 
 
––
*
      5.000%, 5-15-23
 
 
244
 
 
 
19
 
      5.000%, 6-15-23
 
 
2,475
 
 
 
205
 
      5.000%, 6-15-23
 
 
1,966
 
 
 
153
 
      5.000%, 8-15-23
 
 
190
 
 
 
16
 
      5.500%, 11-15-23
 
 
75
 
 
 
––
*
      5.500%, 11-15-23
 
 
29
 
 
 
––
*
      5.000%, 9-15-24
 
 
107
 
 
 
2
 
      5.500%, 9-15-24
 
 
46
 
 
 
1
 
      5.500%, 4-15-25
 
 
42
 
 
 
3
 
      5.500%, 4-15-25
 
 
57
 
 
 
1
 
      5.000%, 9-15-25
 
 
169
 
 
 
3
 
      5.500%, 10-15-25
 
 
3,053
 
 
 
419
 
      5.000%, 4-15-26
 
 
904
 
 
 
24
 
      5.000%, 10-15-28
 
 
990
 
 
 
59
 
      5.500%, 2-15-30
 
 
140
 
 
 
7
 
      5.000%, 8-15-30
 
 
186
 
 
 
9
 
      5.000%, 10-15-30
 
 
1,250
 
 
 
114
 
      5.500%, 3-15-31
 
 
228
 
 
 
17
 
      5.500%, 10-15-32
 
 
2,969
 
 
 
303
 
      5.500%, 1-15-33
 
 
2,021
 
 
 
244
 
      5.500%, 5-15-33
 
 
2,250
 
 
 
290
 
      5.000%, 7-15-33
 
 
2,228
 
 
 
144
 
      6.000%, 11-15-35
 
 
2,186
 
 
 
215
 
Federal National Mortgage Association Agency
      REMIC/CMO (Interest Only): (J)
 
 
 
 
 
 
      5.500%, 11-25-17
 
 
99
 
 
 
1
 
      5.000%, 5-25-22
 
 
143
 
 
 
9
 
      5.000%, 7-25-23
 
 
3,907
 
 
 
431
 
      5.000%, 8-25-23
 
 
1,180
 
 
 
96
 
      5.000%, 11-25-23
 
 
2,008
 
 
 
191
 
      5.500%, 9-25-25
 
 
34
 
 
 
––
*
      5.500%, 11-25-25
 
 
69
 
 
 
––
*
      4.500%, 4-25-30
 
 
1,902
 
 
 
153
 
      5.000%, 9-25-30
 
 
1,557
 
 
 
69
 
      5.000%, 3-25-31
 
 
4,370
 
 
 
195
 
      5.000%, 8-15-31
 
 
2,971
 
 
 
278
 
      5.500%, 6-25-33
 
 
2,998
 
 
 
335
 
      5.500%, 8-25-33
 
 
5,502
 
 
 
655
 
      5.500%, 12-25-33
 
 
2,722
 
 
 
311
 
      5.500%, 4-25-34
 
 
5,384
 
 
 
656
 
      5.500%, 8-25-35
 
 
3,545
 
 
 
491
 
      5.500%, 11-25-36
 
 
9,707
 
 
 
1,253
 
Government National Mortgage Association Agency
      REMIC/CMO (Interest Only): (J)
 
 
 
 
 
 
      5.000%, 1-20-30
 
 
459
 
 
 
26
 
      5.000%, 6-20-31
 
 
511
 
 
 
39
 
      5.500%, 3-20-32
 
 
2,404
 
 
 
237
 
      5.000%, 10-20-32
 
 
1,685
 
 
 
244
 
      7.000%, 5-20-33
 
 
5,154
 
 
 
690
 
      5.500%, 7-16-33
 
 
2,460
 
 
 
323
 
      5.000%, 7-20-33
 
 
112
 
 
 
11
 
      5.500%, 11-20-33
 
 
590
 
 
 
65
 
      5.500%, 6-20-35
 
 
5,471
 
 
 
868
 
      5.500%, 7-20-35
 
 
2,250
 
 
 
349
 
      5.500%, 7-20-35
 
 
876
 
 
 
87
 
      5.500%, 10-16-35
 
 
5,214
 
 
 
768
 
 
 
 
 

12,267
 

 
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 1.01%
$
139,596
  
(Cost: $147,601)
 
 
 
 
 
 
 

BULLION - 15.98%
Troy
Ounces
   
Gold
 
 
2,371
 
 
$
2,200,141
 
(Cost: $2,013,565)
 
 
 
 
 
 
SHORT-TERM SECURITIES
Principal
   
Commercial Paper - 5.68%    
 
 
Baxter International Inc.,
 
 
 
 
 
 
      0.280%, 7-8-09
 
$
12,000
 
 
 
11,999
 
Bemis Company, Inc.:
 
 
 
 
 
 
      0.500%, 7-13-09
 
 
10,000
 
 
 
9,998
 
      0.300%, 7-20-09
 
 
26,500
 
 
 
26,496
 
Burlington Northern Santa Fe Corp.,
 
 
 
 
 
 
      0.450%, 7-2-09
 
 
15,000
 
 
 
15,000
 
Clorox Co.:
 
 
 
 
 
 
      0.500%, 7-7-09
 
 
10,000
 
 
 
9,999
 
      0.450%, 7-13-09
 
 
3,398
 
 
 
3,397
 
      0.450%, 7-24-09
 
 
22,770
 
 
 
22,763
 
Colgate-Palmolive Company,
 
 
 
 
 
 
      0.150%, 7-10-09
 
 
5,182
 
 
 
5,182
 
Corporacion Andina de Fomento,
 
 
 
 
 
 
      0.320%, 8-17-09
 
 
20,000
 
 
 
19,992
 
E.I. du Pont de Nemours and Company,
 
 
 
 
 
 
      0.170%, 7-28-09
 
 
25,000
 
 
 
24,997
 
General Electric Capital Corporation (Federal Deposit
      Insurance Corporation),
 
 
 
 
 
 
      0.250%, 7-31-09 (K)
 
 
4,000
 
 
 
3,999
 
General Mills, Inc.,
 
 
 
 
 
 
      0.450%, 7-10-09
 
 
10,000
 
 
 
9,999
 
Heinz (H.J.) Co.,
 
 
 
 
 
 
      0.550%, 7-20-09
 
 
8,808
 
 
 
8,805
 
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.):
 
 
 
 
 
 
      0.470%, 7-23-09
 
 
17,002
 
 
 
16,997
 
      0.500%, 7-23-09
 
 
5,005
 
 
 
5,003
 
Hewlett-Packard Company,
 
 
 
 
 
 
      0.180%, 7-1-09
 
 
7,000
 
 
 
7,000
 
Honeywell International Inc.,
 
 
 
 
 
 
      0.835%, 12-7-09
 
 
15,000
 
 
 
14,945
 
ITT Corporation,
 
 
 
 
 
 
      1.450%, 7-24-09
 
 
34,500
 
 
 
34,468
 
Johnson & Johnson,
 
 
 
 
 
 
      0.100%, 7-13-09
 
 
5,000
 
 
 
5,000
 
Kellogg Co.:
 
 
 
 
 
 
      0.435%, 7-2-09
 
 
12,000
 
 
 
12,000
 
      0.400%, 7-7-09
 
 
25,000
 
 
 
24,998
 
Kitty Hawk Funding Corp.:
 
 
 
 
 
 
      0.280%, 7-17-09
 
 
10,000
 
 
 
9,999
 
      0.280%, 7-20-09
 
 
10,735
 
 
 
10,733
 
      0.260%, 7-27-09
 
 
19,500
 
 
 
19,496
 
      0.300%, 8-5-09
 
 
10,000
 
 
 
9,997
 
Kraft Foods Inc.:
 
 
 
 
 
 
      0.300%, 7-8-09
 
 
15,000
 
 
 
14,999
 
      0.290%, 7-10-09
 
 
775
 
 
 
775
 
Nokia Corp.,
 
 
 
 
 
 
      0.220%, 7-22-09
 
 
50,000
 
 
 
49,995
 
Pfizer Inc.,
 
 
 
 
 
 
      0.150%, 7-22-09
 
 
35,000
 
 
 
34,997
 
Praxair Inc.,
 
 
 
 
 
 
      0.320%, 7-2-09
 
 
9,052
 
 
 
9,052
 
Procter & Gamble Company (The),
 
 
 
 
 
 
      0.180%, 7-21-09
 
 
10,000
 
 
 
9,999
 
Rabobank USA Financial Corp. (Rabobank Nederland),
 
 
 
 
 
 
      0.250%, 7-7-09
 
 
15,200
 
 
 
15,199
 
Roche Holdings, Inc.:
 
 
 
 
 
 
      0.160%, 7-7-09
 
 
5,923
 
 
 
5,923
 
      0.170%, 7-7-09
 
 
33,763
 
 
 
33,762
 
      0.190%, 7-9-09
 
 
26,000
 
 
 
25,999
 
Siemens Capital Corp.,
 
 
 
 
 
 
      0.150%, 7-2-09
 
 
25,000
 
 
 
25,000
 
Staples, Inc.:
 
 
 
 
 
 
      0.550%, 7-6-09
 
 
33,000
 
 
 
32,997
 
      0.650%, 7-9-09
 
 
25,000
 
 
 
24,996
 
Straight-A Funding, LLC (Federal Financing Bank):
 
 
 
 
 
 
      0.260%, 7-9-09
 
 
40,655
 
 
 
40,654
 
      0.260%, 7-10-09
 
 
15,000
 
 
 
14,999
 
      0.300%, 8-3-09
 
 
20,000
 
 
 
19,995
 
      0.330%, 8-17-09
 
 
12,300
 
 
 
12,295
 
      0.320%, 8-18-09
 
 
15,000
 
 
 
14,994
 
Unilever Capital Corporation:
 
 
 
 
 
 
      0.150%, 7-9-09
 
 
25,000
 
 
 
24,999
 
      0.160%, 7-9-09
 
 
12,000
 
 
 
12,000
 
Verizon Communications Inc.,
 
 
 
 
 
 
      0.340%, 7-8-09
 
 
15,000
 
 
 
14,999
 
 
 
 
 

781,890
 
Master Note - 0.01%    
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
 
      0.197%, 7-1-09 (I)
 
 
1,916
 
 
 
1,916
 
 
 
 
 
 
Municipal Obligations - Non-Taxable - 0.14%    
 
 
Exempla General Improvement District, City of Lafayette,
      Colorado, Special Improvement District No. 02-01,
      Special Assessment Revenue Refunding and Improvement
      Bonds, Series 2002 (Wells Fargo Bank, N.A.),
 
 
 
 
 
 
      0.300%, 7-1-09 (I)
 
 
1,260
 
 
 
1,260
 
The City of New York, General Obligation Bonds, Fiscal 2006
      Series E (Bank of America, N.A.),
 
 
 
 
 
 
      0.230%, 7-1-09 (I)
 
 
6,525
 
 
 
6,525
 
The Town of Castle Rock, Colorado, Certificates of Participation,
      Series 2008,
 
 
 
 
 
 
      0.300%, 7-1-09 (I)
 
 
11,000
 
 
 
11,000
 
 
 
 
 

18,785
 
Notes - 0.73%    
 
 
American Honda Finance Corp.:
 
 
 
 
 
 
      1.404%, 7-29-09 (I)
 
 
16,500
 
 
 
16,402
 
      1.496%, 8-14-09 (I)
 
 
25,000
 
 
 
25,000
 
BellSouth Corporation (AT&T Inc.),
 
 
 
 
 
 
      4.950%, 4-26-10 (I)
 
 
31,000
 
 
 
31,612
 
Caterpillar Financial Services Corporation,
 
 
 
 
 
 
      4.150%, 1-15-10
 
 
15,045
 
 
 
15,205
 
Countrywide Home Loans, Inc.,
 
 
 
 
 
 
      5.625%, 7-15-09
 
 
8,000
 
 
 
8,012
 
John Deere Capital Corporation,
 
 
 
 
 
 
      0.708%, 9-1-09 (I)
 
 
5,000
 
 
 
4,966
 
 
 
 
 

101,197
 
Treasury Bills - 0.21%    
 
 
United States Treasury Bills,
 
 
 
 
 
 
      0.950%, 7-30-09
 
 
29,475
 
 
 
29,452
 
 
 
 
 
 
United States Government Agency Obligations - 0.08%    
 
 
Federal Home Loan Mortgage Corporation,
 
 
 
 
 
 
      0.020%, 7-1-09
 
 
991
 
 
 
991
 
Federal National Mortgage Association,
 
 
 
 
 
 
      0.090%, 7-22-09
 
 
3,754
 
 
 
3,754
 
Overseas Private Investment Corporation,
 
 
 
 
 
 
      0.250%, 7-15-09 (I)
 
 
5,000
 
 
 
5,000
 
 
 
 
 

9,745
 
 
TOTAL SHORT-TERM SECURITIES - 6.85%
$
942,985
  
(Cost: $942,985)
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 99.07%
$
13,636,211
  
(Cost: $12,707,046)
 
 
 
 
 
 
 
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.93%
128,098
  
 
NET ASSETS - 100.00%
$
13,764,309
  

 

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
 
Level 2
 
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
$
9,307,094
 
 
$
103,076
 
 
$
––
 
Investment Funds
 
––
 
 
 
––
 
 
 
4,114
 
Corporate Debt Securities
 
––
 
 
 
596,765
 
 
 
––
 
Municipal Bonds
 
––
 
 
 
99,711
 
 
 
––
 
Put Options
 
––
 
 
 
––
 
 
 
219,888
 
Senior Loans
 
––
 
 
 
22,841
 
 
 
––
 
United States Government Agency Obligations
 
––
 
 
 
139,596
 
 
 
––
 
Bullion
 
2,200,141
 
 
 
––
 
 
 
––
 
Short-Term Securities
 
––
 
 
 
942,985
   
 
––
 
 
 
11,507,235
 
 
 
1,904,974
 
 
 
224,002
 
Other Financial Instruments+
 
––
 
 
 
(7,497
)
  
 
––
 
Total
$
11,507,235
    
$
1,897,477
    
$
224,002
  

+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
 
Investment
Funds
  
Put
Options
 
 
 
 
 
 
 
 
Beginning Balance 4-1-09
$
2,838
 
 
$
––
 
Net realized gain (loss)
 
––
 
 
 
––
 
Net unrealized appreciation (depreciation)
 
1,276
 
 
 
(214,296
)
Net purchases (sales)
 
––
 
 
 
434,184
 
Transfers in and/or (out) of Level 3 during the period  
––
     
––
 
Ending Balance 6-30-09
$
4,114
    
$
219,888
 
Net change in unrealized appreciation (depreciation)
      for all Level 3 investments still held as of 6-30-09
$
1,276
    
$
(214,296
)


The following forward foreign currency contracts were outstanding at June 30, 2009:
 
Type
Currency
Principal Amount of
Contract (Denominated
in Indicated Currency)
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
Sell
Japanese Yen
12,593,471
7-21-09
$
14,944
$
––
Sell
Japanese Yen
18,583,339
7-21-09
 
––
 
4,671
Sell
Japanese Yen
717,174
10-8-09
 
199
 
––
Sell
Japanese Yen
1,085,105
10-8-09
 
––
 
170
Sell
Japanese Yen
42,234,000
3-5-10
 
––
 
7,352
Buy
Norwegian Krone
62,100
12-23-09
 
319
 
––
Buy
Norwegian Krone
370,333
12-23-09
 
––
 
273
Sell
Singapore Dollar
386,045
7-31-09
 
––
 
9,291
Sell
Singapore Dollar
155,500
1-11-10
 
––
 
1,989
Buy
Swedish Krona
11,549,360
8-3-09
 
1,325
 
––
Buy
Swedish Krona
931,400
8-3-09
 
––
 
538
 
 
 
 
$
16,787
  
$
24,284
*Not shown due to rounding.
 
(A)Listed on an exchange outside the United States.
 
(B)No dividends were paid during the preceding 12 months.
 
(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At June 30, 2009, the total value of these securities amounted to $381,948 or 2.77% of net assets.
 
(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors. At June 30, 2009, the total value of these securities amounted to $158,222 or 1.15% of net assets.
 
(E)Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities.
 
(F)Illiquid restricted security. At June 30, 2009, the following restricted security was owned:
 

  Security
Acquisition
Date(s)
Shares
Cost
Market
Value
 
 
Vietnam Azalea Fund Limited
6-14-07 to 1-28-09
1,100
 
$7,268
 
$4,114
 
 
 
 
 
 
 
 
 
The total value of this security represented approximately 0.03% of net assets at June 30, 2009.
 
(G)Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. The Fund and other mutual funds managed by its investment manager, Waddell & Reed Investment Management Company, or other related parties together own 30% of the outstanding shares of this security at June 30, 2009.
 
(H)Principal amounts or strike prices are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real, EUR - Euro and HKD - Hong Kong Dollar).
 
(I)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
(J)Amount shown in principal column represents notional amount for computation of interest.
 
(K)Security is fully guaranteed by the Federal Deposit Insurance Corporation for both interest and principal under the Debt Guarantee Program of the Temporary Liquidity Guarantee Program.
 
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipt
CMO = Collateralized Mortgage Obligation
REIT = Real Estate Investment Trust
REMIC = Real Estate Mortgage Investment Conduit
 











SCHEDULE OF INVESTMENTS
Ivy Capital Appreciation Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)
   
COMMON STOCKS  
Shares
 
Value
Aerospace & Defense - 7.13%    
 
General Dynamics Corporation
 
 
160
 
 
$
8,862
Precision Castparts Corp.
 
 
110
 
 
 
8,033
Raytheon Company
 
 
75
 
 
 
3,332
Rockwell Collins, Inc.
 
 
260
 
 
 
10,850
 
 
 
 

31,077
Apparel, Accessories & Luxury Goods - 0.92%    
 
Coach, Inc. (A)
 
 
120
 
 
 
3,226
Under Armour, Inc., Class A (B)
 
 
35
 
 
 
783
 
 
 
 

4,009
Asset Management & Custody Banks - 2.23%    
 
BlackRock, Inc., Class A
 
 
12
 
 
 
2,105
Janus Capital Group Inc.
 
 
665
 
 
 
7,581
 
 
 
 

9,686
Biotechnology - 4.85%    
 
Gilead Sciences, Inc. (B)
 
 
450
 
 
 
21,078
 
 
 
 
Casinos & Gaming - 0.28%    
 
Wynn Resorts, Limited (B)
 
 
35
 
 
 
1,236
 
 
 
 
Communications Equipment - 6.89%    
 
Cisco Systems, Inc. (B)
 
 
210
 
 
 
3,914
Nokia Corporation, Series A, ADR
 
 
345
 
 
 
5,030
QUALCOMM Incorporated
 
 
190
 
 
 
8,588
Research In Motion Limited (B)
 
 
175
 
 
 
12,434
 
 
 
 

29,966
Computer Hardware - 7.63%    
 
Apple Inc. (A)(B)
 
 
125
 
 
 
17,804
Hewlett-Packard Company
 
 
400
 
 
 
15,460
 
 
 
 

33,264
Construction & Farm Machinery & Heavy Trucks - 1.70%    
 
Deere & Company (A)
 
 
185
 
 
 
7,391
 
 
 
 
Consumer Finance - 0.41%    
 
American Express Company
 
 
77
 
 
 
1,789
 
 
 
 
Data Processing & Outsourced Services - 3.16%    
 
Visa Inc., Class A
 
 
221
 
 
 
13,735
 
 
 
 
Department Stores - 0.86%    
 
Kohl's Corporation (B)
 
 
41
 
 
 
1,753
Nordstrom, Inc.
 
 
100
 
 
 
1,989
 
 
 
 

3,742
Fertilizers & Agricultural Chemicals - 3.42%    
 
Monsanto Company
 
 
200
 
 
 
14,868
 
 
 
 
Footwear - 0.42%    
 
NIKE, Inc., Class B
 
 
35
 
 
 
1,812
 
 
 
 
Health Care Equipment - 1.60%    
 
Hologic, Inc. (B)
 
 
490
 
 
 
6,973
 
 
 
 
Home Improvement Retail - 0.71%    
 
Lowe's Companies, Inc.
 
 
160
 
 
 
3,106
 
 
 
 
Household Products - 2.05%    
 
Procter & Gamble Company (The)
 
 
175
 
 
 
8,943
 
 
 
 
Hypermarkets & Super Centers - 3.98%    
 
Costco Wholesale Corporation
 
 
315
 
 
 
14,395
Wal-Mart Stores, Inc.
 
 
60
 
 
 
2,906
 
 
 
 

17,301
Integrated Oil & Gas - 0.60%    
 
Occidental Petroleum Corporation
 
 
40
 
 
 
2,632
 
 
 
 
Integrated Telecommunication Services - 0.83%    
 
AT&T Inc.
 
 
145
 
 
 
3,602
 
 
 
 
Internet Software & Services - 4.65%    
 
Google Inc., Class A (B)
 
 
48
 
 
 
20,236
 
 
 
 
Investment Banking & Brokerage - 3.21%    
 
Charles Schwab Corporation (The)
 
 
670
 
 
 
11,752
Goldman Sachs Group, Inc. (The) (A)
 
 
15
 
 
 
2,241
 
 
 
 

13,993
Oil & Gas Drilling - 1.72%    
 
Nabors Industries Ltd. (B)
 
 
75
 
 
 
1,169
Transocean Inc. (A)(B)
 
 
85
 
 
 
6,314
 
 
 
 

7,483
Oil & Gas Equipment & Services - 5.28%    
 
Halliburton Company
 
 
200
 
 
 
4,140
Schlumberger Limited
 
 
240
 
 
 
12,987
Smith International, Inc. (A)
 
 
225
 
 
 
5,794
 
 
 
 

22,921
Oil & Gas Exploration & Production - 2.12%    
 
Ultra Petroleum Corp. (B)
 
 
110
 
 
 
4,290
XTO Energy Inc.
 
 
130
 
 
 
4,958
 
 
 
 

9,248
Other Diversified Financial Services - 0.71%    
 
JPMorgan Chase & Co.
 
 
90
 
 
 
3,070
 
 
 
 
Pharmaceuticals - 1.13%    
 
Abbott Laboratories
 
 
105
 
 
 
4,939
 
 
 
 
Railroads - 2.75%    
 
Union Pacific Corporation
 
 
230
 
 
 
11,974
 
 
 
 
Restaurants - 3.98%    
 
McDonald's Corporation
 
 
220
 
 
 
12,647
YUM! Brands, Inc.
 
 
140
 
 
 
4,667
 
 
 
 

17,314
Semiconductors - 1.32%    
 
Broadcom Corporation, Class A (B)
 
 
55
 
 
 
1,363
Microchip Technology Incorporated
 
 
195
 
 
 
4,398
 
 
 
 

5,761
Soft Drinks - 2.17%    
 
Coca-Cola Company (The)
 
 
65
 
 
 
3,119
PepsiCo, Inc.
 
 
115
 
 
 
6,321
 
 
 
 

9,440
Specialized Finance - 0.37%    
 
CME Group Inc.
 
 
5
 
 
 
1,618
 
 
 
 
Specialty Chemicals - 3.03%    
 
Albemarle Corporation
 
 
256
 
 
 
6,556
Ecolab Inc.
 
 
170
 
 
 
6,628
 
 
 
 

13,184
Systems Software - 5.46%    
 
Microsoft Corporation (A)
 
1,000
 
 
 
23,770
 
 
 
 
Tobacco - 2.95%    
 
Altria Group, Inc.
 
 
180
 
 
 
2,950
Lorillard, Inc. (A)
 
 
75
 
 
 
5,083
Philip Morris International Inc.
 
 
110
 
 
 
4,798
 
 
 
 

12,831

TOTAL COMMON STOCKS - 90.52%    
   
$
393,992
(Cost: $454,128)
 
 
 
 
 

SHORT-TERM SECURITIES  
Principal
    
Commercial Paper - 8.52%    
 
American Honda Finance Corp.,
 
 
 
 
 
      0.410%, 7-9-09
 
$
4,000
 
 
 
4,000
Clorox Co.,
 
 
 
 
 
      0.500%, 7-20-09
 
 
2,000
 
 
 
1,999
Colgate-Palmolive Company,
 
 
 
 
 
      0.100%, 7-6-09
 
 
5,000
 
 
 
5,000
Hewlett-Packard Company,
 
 
 
 
 
      0.120%, 7-1-09
11,569
 
 
 
11,569
Johnson & Johnson,
 
 
 
 
 
      0.100%, 7-13-09
 
 
2,000
 
 
 
2,000
Roche Holdings, Inc.,
 
 
 
 
 
      0.190%, 7-9-09
 
 
5,000
 
 
 
5,000
Siemens Capital Corp.,
 
 
 
 
 
      0.150%, 7-2-09
 
 
5,000
 
 
 
5,000
Unilever Capital Corporation,
 
 
 
 
 
      0.100%, 7-9-09
 
 
2,500
 
 
 
2,500
 
 
 
 

37,068
Master Note - 0.86%    
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.197%, 7-1-09 (C)
 
 
3,747
 
 
 
3,747
 
 
 
 

TOTAL SHORT-TERM SECURITIES - 9.38%    
   
$
40,815
(Cost: $40,815)
 
 
 
 
 

TOTAL INVESTMENT SECURITIES - 99.90%    
   
$
434,807
(Cost: $494,943)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.10%      
420

NET ASSETS - 100.00%    
   
$
435,227

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
  
Level 2
  
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
$
393,992
 
 
$
––
 
 
$
––
 
Short-Term Securities
 
––
 
 
 
40,815
 
 
 
––
 
 
 
393,992
 
 
 
40,815
 
 
 
––
 
Other Financial Instruments+
 
(117)
 
 
 
––
 
 
 
––
 
Total
$
393,875
 
 
$
40,815
 
 
$
––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
(A) Securities serve as cover or collateral for the following written options outstanding at June 30, 2009:
 
Underlying
Security
Contracts
Subject
to Call
Expiration
Month
Exercise
Price
Premium
Received
Market
Value
CME Group Inc.
--*
July 2009
$350.00
 
$4
 
$(1)
Coach, Inc.
--*
July 2009
30.00
  
23
 
(3)
Deere & Company
--*
July 2009
48.00
  
10
 
(1)
Goldman Sachs Group, Inc. (The)
--*
July 2009
165.00
  
3
 
(1)
Google Inc., Class A
--*
July 2009
460.00
  
16
 
(10)
Lorillard, Inc.
--*
July 2009
75.00
  
5
 
--*
Occidental Petroleum Corporation
--*
August 2009
75.00
  
4
 
(3)
Smith International, Inc.
--*
July 2009
35.00
  
9
 
--*
Transocean Inc.
--*
July 2009
95.00
  
13
 
(1)
         
$87
 
$(20)
               
Underlying
Security
Contracts
Subject
to Put
Expiration
Month
Exercise
Price
Premium
Received
Market
Value
American Express Company
--*
July 2009
$20.00
  
$7
 
$(2)
Apple Inc.
--*
August 2009
105.00
  
20
 
(9)
Deere & Company
--*
July 2009
38.00
  
20
 
(27)
Lorillard, Inc.
--*
July 2009
60.00
  
4
 
--*
Occidental Petroleum Corporation
--*
August 2009
50.00
  
3
 
(1)
Visa Inc., Class A
--*
July 2009
60.00
  
12
 
(20)
Wynn Resorts, Limited
--*
July 2009
30.00
  
25
 
(11)
 
--*
July 2009
33.00
  
19
 
(11)
XTO Energy Inc.:
--*
July 2009
37.00
  
6
 
(16)
         
$116
 
$(97)
*Not shown due to rounding.
 
(B) No dividends were paid during the preceding 12 months.
 
(C) Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
The following acronym is used throughout this schedule:
ADR = American Depositary Receipt
 











SCHEDULE OF INVESTMENTS
Ivy Core Equity Fund
      (in thousands)
  JUNE 30, 2009 (UNAUDITED)

COMMON STOCKS  
    Shares
  
Value
 
Advertising - 1.80%    
 
 
Omnicom Group Inc.
 
 
96
 
 
$
3,022
 
 
 
 
 


 
Aerospace & Defense - 1.12%    
 
 
Lockheed Martin Corporation
 
 
23
 
 
 
1,879
 
 
 
 
 


 
Application Software - 2.64%    
 
 
SAP Aktiengesellschaft, ADR
 
 
110
 
 
 
4,433
 
 
 
 
 


 
Biotechnology - 2.91%    
 
 
Amgen Inc. (A)
 
 
92
 
 
 
4,886
 
 
 
 
 


 
Brewers - 2.56%    
 
 
Molson Coors Brewing Company, Class B
 
 
102
 
 
 
4,296
 
 
 
 
 


 
Communications Equipment - 6.98%    
 
 
Juniper Networks, Inc. (A)
 
 
117
 
 
 
2,759
 
QUALCOMM Incorporated
 
 
145
 
 
 
6,562
 
Telefonaktiebolaget LM Ericsson, ADR
 
 
245
 
 
 
2,400
 
 
 
 
 

11,721
 
Computer Hardware - 6.49%    
 
 
Apple Inc. (A)
 
 
27
 
 
 
3,831
 
Hewlett-Packard Company
 
 
183
 
 
 
7,081
 
 
 
 
 

10,912
 
Construction & Farm Machinery & Heavy Trucks - 0.79%    
 
 
PACCAR Inc
 
 
41
 
 
 
1,320
 
 
 
 
 


 
Consumer Finance - 3.23%    
 
 
American Express Company
 
 
56
 
 
 
1,299
 
Capital One Financial Corporation
 
 
189
 
 
 
4,136
 
 
 
 
 

5,435
 
Data Processing & Outsourced Services - 0.25%    
 
 
Visa Inc., Class A
 
 
7
 
 
 
417
 
 
 
 
 


 
Department Stores - 4.38%    
 
 
Kohl's Corporation (A)
 
 
51
 
 
 
2,193
 
Macy's Inc.
 
 
298
 
 
 
3,508
 
Nordstrom, Inc.
 
 
83
 
 
 
1,651
 
 
 
 
 

7,352
 
Diversified Banks - 2.75%    
 
 
Wells Fargo & Company
 
 
190
 
 
 
4,614
 
 
 
 
 


 
Diversified Chemicals - 1.01%    
 
 
PPG Industries, Inc.
 
 
39
 
 
 
1,695
 
 
 
 
 


 
Fertilizers & Agricultural Chemicals - 0.84%    
 
 
Monsanto Company
 
 
19
 
 
 
1,405
 
 
 
 
 


 
General Merchandise Stores - 1.64%    
 
 
Target Corporation
 
 
70
 
 
 
2,751
 
 
 
 
 


 
Health Care Equipment - 3.25%    
 
 
Baxter International Inc.
 
 
73
 
 
 
3,866
 
Stryker Corporation
 
 
40
 
 
 
1,598
 
 
 
 
 

5,464
 
Home Improvement Retail - 1.80%    
 
 
Home Depot, Inc. (The)
 
 
128
 
 
 
3,032
 
 
 
 
 


 
Hypermarkets & Super Centers - 3.35%    
 
 
Costco Wholesale Corporation
 
 
95
 
 
 
4,341
 
Wal-Mart Stores, Inc.
 
 
27
 
 
 
1,284
 
 
 
 
 

5,625
 
Industrial Gases - 3.96%    
 
 
Air Products and Chemicals, Inc.
 
 
53
 
 
 
3,414
 
Praxair, Inc.
 
 
46
 
 
 
3,255
 
 
 
 
 

6,669
 
Industrial Machinery - 1.87%    
 
 
Parker Hannifin Corporation
 
 
73
 
 
 
3,136
 
 
 
 
 


 
Integrated Oil & Gas - 2.53%    
 
 
Exxon Mobil Corporation
 
 
25
 
 
 
1,739
 
Suncor Energy Inc.
 
 
83
 
 
 
2,512
 
 
 
 
 

4,251
 
Integrated Telecommunication Services - 0.52%    
 
 
AT&T Inc.
 
 
35
 
 
 
877
 
 
 
 
 


 
Internet Retail - 0.87%    
 
 
Amazon.com, Inc. (A)
 
 
18
 
 
 
1,464
 
 
 
 
 


 
Investment Banking & Brokerage - 2.44%    
 
 
Charles Schwab Corporation (The)
 
 
234
 
 
 
4,097
 
 
 
 
 


 
Oil & Gas Equipment & Services - 4.98%    
 
 
Schlumberger Limited
 
 
28
 
 
 
1,535
 
Smith International, Inc.
 
 
73
 
 
 
1,890
 
Weatherford International Ltd. (A)
 
 
253
 
 
 
4,944
 
 
 
 
 

8,369
 
Oil & Gas Exploration & Production - 4.84%    
 
 
Noble Energy, Inc.
 
 
43
 
 
 
2,542
 
XTO Energy Inc.
 
 
146
 
 
 
5,583
 
 
 
 
 

8,125
 
Other Diversified Financial Services - 5.69%    
 
 
Bank of America Corporation
 
 
367
 
 
 
4,850
 
JPMorgan Chase & Co.
 
 
138
 
 
 
4,711
 
 
 
 
 

9,561
 
Pharmaceuticals - 1.07%    
 
 
Teva Pharmaceutical Industries Limited, ADR
 
 
37
 
 
 
1,801
 
 
 
 
 


 
Railroads - 3.42%    
 
 
Union Pacific Corporation
 
 
111
 
 
 
5,758
 
 
 
 
 


 
Semiconductor Equipment - 2.13%    
 
 
Applied Materials, Inc.
 
 
327
 
 
 
3,583
 
 
 
 
 


 
Semiconductors - 2.40%    
 
 
Microchip Technology Incorporated
 
 
179
 
 
 
4,036
 
 
 
 
 


 
Soft Drinks - 3.08%    
 
 
Coca-Cola Company (The)
 
 
108
 
 
 
5,183
 
 
 
 
 


 
Specialized Finance - 3.22%    
 
 
CME Group Inc.
 
 
12
 
 
 
3,764
 
IntercontinentalExchange, Inc. (A)
 
 
14
 
 
 
1,645
 
 
 
 
 

5,409
 
Tobacco - 5.30%    
 
 
Lorillard, Inc.
 
 
90
 
 
 
6,100
 
Philip Morris International Inc.
 
 
64
 
 
 
2,805
 
 
 
 
 

8,905
 
 
TOTAL COMMON STOCKS - 96.11%    
   
$
161,483
 
(Cost: $153,931)
 
 
 
 
 
 
 
SHORT-TERM SECURITIES
Principal
    
 
Commercial Paper - 2.98%    
 
 
Roche Holdings, Inc.,
 
 
 
 
 
 
      0.190%, 7-9-09
 
$
3,000
 
 
 
3,000
 
Straight-A Funding, LLC (Federal Financing Bank),
 
 
 
 
 
 
      0.270%, 7-24-09
 
 
2,000
 
 
 
2,000
 
 
 
 
 

5,000
 
Master Note - 1.63%    
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
 
      0.197%, 7-1-09 (B)
 
 
2,743
 
 
 
2,743
 
 
 
 
 


 
TOTAL SHORT-TERM SECURITIES - 4.61%    
   
$
7,743
 
(Cost: $7,743)
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 100.72%    
   
$
169,226
 
(Cost: $161,674)
 
 
 
 
 
 
 
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.72%)      
(1,208
)
 
NET ASSETS - 100.00%    
   
$
168,018
 
 
Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liabi lity developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
 
Level 2
 
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
 
$161,483
 
 
 
$     ––
 
 
 
$    ––
 
Short-Term Securities
 
––
 
 
 
7,743
 
 
 
––
 
 
 
161,483
 
 
 
7,743
 
 
 
––
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
 
$161,483
 
 
 
$7,743
 
 
 
$    ––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
(A)No dividends were paid during the preceding 12 months.
 
(B)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
The following acronym is used throughout this schedule:
ADR = American Depositary Receipt
 











SCHEDULE OF INVESTMENTS
Ivy Energy Fund
      (in thousands)
  JUNE 30, 2009 (UNAUDITED)

COMMON STOCKS  
Shares
 
Value
Coal & Consumable Fuels - 3.26%    
 
Arch Coal, Inc.
 
 
18
 
 
$
281
Cameco Corporation
 
 
12
 
 
 
311
CONSOL Energy Inc.
 
 
10
 
 
 
345
Foundation Coal Holdings, Inc.
 
 
11
 
 
 
320
Peabody Energy Corporation
 
 
19
 
 
 
571
 
 
 
 

1,828
Construction & Engineering - 4.11%    
 
Fluor Corporation
 
 
33
 
 
 
1,679
Jacobs Engineering Group Inc. (A)
 
 
15
 
 
 
629
 
 
 
 

2,308
Construction & Farm Machinery & Heavy Trucks - 1.11%    
 
Bucyrus International, Inc., Class A
 
 
22
 
 
 
623
 
 
 
 


Diversified Metals & Mining - 0.58%    
 
BHP Billiton Limited, ADR
 
 
6
 
 
 
326
 
 
 
 


Electric Utilities - 3.21%    
 
Entergy Corporation
 
 
13
 
 
 
978
Exelon Corporation
 
 
16
 
 
 
821
 
 
 
 

1,799
Electrical Components & Equipment - 1.87%    
 
Energy Conversion Devices, Inc. (A)
 
 
12
 
 
 
164
First Solar, Inc. (A)
 
 
5
 
 
 
884
 
 
 
 

1,048
Integrated Oil & Gas - 16.76%    
 
BP p.l.c., ADR
 
 
25
 
 
 
1,179
ConocoPhillips
 
 
20
 
 
 
820
Exxon Mobil Corporation
 
 
29
 
 
 
2,030
Hess Corporation
 
 
16
 
 
 
859
Marathon Oil Corporation
 
 
19
 
 
 
583
Occidental Petroleum Corporation
 
 
25
 
 
 
1,644
Petroleo Brasileiro S.A. - Petrobras, ADR
 
 
32
 
 
 
1,320
Suncor Energy Inc.
 
 
32
 
 
 
965
 
 
 
 

9,400
Oil & Gas Drilling - 6.26%    
 
ENSCO International Incorporated
 
 
15
 
 
 
531
Helmerich & Payne, Inc.
 
 
44
 
 
 
1,347
Nabors Industries Ltd. (A)
 
 
53
 
 
 
830
Transocean Inc. (A)
 
 
11
 
 
 
802
 
 
 
 

3,510
Oil & Gas Equipment & Services - 22.77%    
 
Baker Hughes Incorporated
 
 
16
 
 
 
590
BJ Services Company
 
 
55
 
 
 
752
Cameron International Corporation (A)
 
 
45
 
 
 
1,279
FMC Technologies, Inc. (A)
 
 
21
 
 
 
789
Halliburton Company
 
 
65
 
 
 
1,347
NATCO Group Inc., Class A (A)
 
 
20
 
 
 
673
National Oilwell Varco, Inc. (A)
 
 
58
 
 
 
1,902
Schlumberger Limited
 
 
36
 
 
 
1,956
Smith International, Inc.
 
 
33
 
 
 
861
Technip SA, ADR
 
 
8
 
 
 
372
Tenaris S.A., ADR
 
 
25
 
 
 
669
Weatherford International Ltd. (A)
 
 
81
 
 
 
1,583
 
 
 
 

12,773
Oil & Gas Exploration & Production - 23.70%    
 
Anadarko Petroleum Corporation
 
 
17
 
 
 
755
Apache Corporation
 
 
20
 
 
 
1,421
Cabot Oil & Gas Corporation
 
 
9
 
 
 
274
CNOOC Limited, ADR
 
 
5
 
 
 
615
Continental Resources, Inc. (A)
 
 
44
 
 
 
1,215
Devon Energy Corporation
 
 
19
 
 
 
1,061
EOG Resources, Inc.
 
 
17
 
 
 
1,165
Newfield Exploration Company (A)
 
 
34
 
 
 
1,125
Noble Energy, Inc.
 
 
22
 
 
 
1,281
Southwestern Energy Company (A)
 
 
66
 
 
 
2,583
Ultra Petroleum Corp. (A)
 
 
16
 
 
 
638
XTO Energy Inc.
 
 
30
 
 
 
1,159
 
 
 
 

13,292
Oil & Gas Refining & Marketing - 1.20%    
 
Clean Energy Fuels Corp. (A)
 
 
39
 
 
 
332
Valero Energy Corporation
 
 
20
 
 
 
342
 
 
 
 

674
Oil & Gas Storage & Transportation - 4.01%    
 
El Paso Corporation
 
 
67
 
 
 
621
El Paso Pipeline Partners, L.P.
 
 
36
 
 
 
627
Enbridge Inc.
 
 
29
 
 
 
1,003
 
 
 
 

2,251
Semiconductor Equipment - 1.23%    
 
Applied Materials, Inc.
 
 
63
 
 
 
691
 
 
 
 
   
TOTAL COMMON STOCKS - 90.07%    
   
$
50,523
(Cost: $44,059)
 
 
 
 
 
             
 
SHORT-TERM SECURITIES  
Principal
Commercial Paper - 6.36%
Baxter International Inc.,
      0.300%, 7-9-09
 
$
1,500
 
1,500
John Deere Capital Corporation,
      0.130%, 7-1-09
 
 
1,070
 
1,070
Unilever Capital Corporation,
      0.100%, 7-9-09
 
 
1,000
 
1,000

3,570
Master Note - 3.44%  
Toyota Motor Credit Corporation,
      0.197%, 7-1-09 (B)
 
 
1,928
 
1,928
 
 
 


TOTAL SHORT-TERM SECURITIES - 9.80%    
 
$
5,498
(Cost: $5,498)

TOTAL INVESTMENT SECURITIES - 99.87%    
 
$
56,021
(Cost: $49,557)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.13%  
70

NET ASSETS - 100.00%
$
56,091
 

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
  
Level 2
  
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
$
50,523
 
 
$
––
 
 
$
––
 
Short-Term Securities
 
––
 
 
 
5,498
 
 
 
––
 
 
 
50,523
 
 
 
5,498
 
 
 
––
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
$
50,523
    
$
5,498
    
$
––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
(A)No dividends were paid during the preceding 12 months.
 
(B)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
The following acronym is used throughout this schedule:
ADR = American Depositary Receipt
 









SCHEDULE OF INVESTMENTS
Ivy High Income Fund
      (in thousands)
  JUNE 30, 2009 (UNAUDITED)
 
COMMON STOCKS  
Shares
  
Value
Casinos & Gaming - 0.01%
 
 
 
Pinnacle Entertainment, Inc. (A)
 
 
7
 
 
$
65
 
 
 
 


Commodity Chemicals - 0.00%
 
 
 
Innophos Holdings, Inc.
 
 
2
 
 
 
29
 
 
 
 


Data Processing & Outsourced Services - 0.03%
 
 
 
Global Cash Access, Inc. (A)
 
 
28
 
 
 
223
 
 
 
 


Oil & Gas Storage & Transportation - 0.06%
 
 
 
Inergy, L.P.
 
 
15
 
 
 
382
 
 
 
 


TOTAL COMMON STOCKS - 0.10%    
 
  
$
699
(Cost: $747)
 
 
 
 
 
 
 
 
 
 
 
 
PREFERRED STOCKS - 0.02%    
 
    
Finance - 0.02%
 
 
 
Preferred Blocker Inc. (A)(B)
 
 
––
*
 
$
130
(Cost: $--)
 
 
 
 


CORPORATE DEBT SECURITIES  
Principal
   
Apparel, Accessories & Luxury Goods - 0.55%
 
 
 
 
 
Oxford Industries, Inc.:
 
 
 
 
 
      8.875%, 6-1-11
 
$225
 
 
 
225
      11.375%, 7-15-15 (C)
 
 
2,650
 
 
 
2,624
Perry Ellis International, Inc.,
 
 
 
 
 
      8.875%, 9-15-13
 
 
1,335
 
 
 
1,088
 
 
 
 

3,937
Automobile Manufacturers - 0.04%
 
 
 
 
 
UCI Holdco, Inc.,
 
 
 
 
 
      8.624%, 12-15-13 (D)
 
 
1,317
 
 
 
281
 
 
 
 


Automotive Retail - 1.24%
 
 
 
 
 
AutoNation, Inc.:
 
 
 
 
 
      3.131%, 4-15-13 (D)
 
 
1,000
 
 
 
881
      7.000%, 4-15-14
 
 
2,500
 
 
 
2,406
Group 1 Automotive, Inc.,
 
 
 
 
 
      8.250%, 8-15-13
 
 
2,850
 
 
 
2,408
Group 1 Automotive, Inc., Convertible,
 
 
 
 
 
      2.250%, 6-15-16
 
 
5,100
 
 
 
3,271
 
 
 
 

8,966
Banking - 0.88%
 
 
 
 
 
JPMorgan Chase & Co.,
 
 
 
 
 
      7.900%, 4-29-49 (D)
 
 
7,250
 
 
 
6,344
 
 
 
 


Broadband - 0.24%
 
 
 
 
 
Qwest Capital Funding, Inc.,
 
 
 
 
 
      7.250%, 2-15-11
 
 
1,750
 
 
 
1,698
 
 
 
 


Building Products - 1.23%
 
 
 
 
 
CPG International I Inc.,
 
 
 
 
 
      10.500%, 7-1-13
 
 
500
 
 
 
280
Norcraft Companies, L.P. and Norcraft Finance Corp.,
 
 
 
 
 
      9.750%, 9-1-12
 
 
200
 
 
 
187
Nortek, Inc.,
 
 
 
 
 
      10.000%, 12-1-13
 
 
618
 
 
 
496
Ply Gem Industries, Inc.,
 
 
 
 
 
      11.750%, 6-15-13
 
 
12,250
 
 
 
7,901
 
 
 
 

8,864
Cable & Satellite - 0.87%
 
 
 
 
 
CSC Holdings, Inc.,
 
 
 
 
 
      6.750%, 4-15-12
 
 
5,000
 
 
 
4,825
DirecTV Holdings LLC and DirecTV Financing Co.,
 
 
 
 
 
      7.625%, 5-15-16
 
 
1,500
 
 
 
1,459
 
 
 
 

6,284
Capital Goods - 0.35%
 
 
 
 
 
RBS Global, Inc. and Rexnord LLC:
 
 
 
 
 
      9.500%, 8-1-14 (C)
 
 
2,082
 
 
 
1,780
      9.500%, 8-1-14
 
 
850
 
 
 
727
 
 
 
 

2,507
Casinos & Gaming - 6.73%
 
 
 
 
 
Ameristar Casinos, Inc.,
 
 
 
 
 
      9.250%, 6-1-14 (C)
 
 
10,675
 
 
 
10,889
Inn of the Mountain Gods Resort and Casino,
 
 
 
 
 
      12.000%, 11-15-10 (F)
 
 
1,500
 
 
 
600
MGM MIRAGE:
 
 
 
 
 
      6.750%, 9-1-12
 
 
1,500
 
 
 
1,065
      10.375%, 5-15-14 (C)
 
 
2,725
 
 
 
2,827
      7.625%, 1-15-17
 
 
2,500
 
 
 
1,619
      11.125%, 11-15-17 (C)
 
 
6,150
 
 
 
6,519
Pinnacle Entertainment, Inc.:
 
 
 
 
 
      8.250%, 3-15-12
 
 
3,195
 
 
 
3,179
      8.750%, 10-1-13
 
 
1,000
 
 
 
1,005
      7.500%, 6-15-15
 
 
7,000
 
 
 
5,985
Scientific Games Corporation,
 
 
 
 
 
      9.250%, 6-15-19 (B)
 
 
12,625
 
 
 
12,624
Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp.,
 
 
 
 
 
      6.625%, 12-1-14
 
 
2,500
 
 
 
2,200
 
 
 
 

48,512
Chemicals - 1.19%
 
 
 
 
 
Nalco Company:
 
 
 
 
 
      7.750%, 11-15-11
 
 
715
 
 
 
715
      8.875%, 11-15-13
 
 
6,750
 
 
 
6,885
      8.250%, 5-15-17 (C)
 
 
1,000
 
 
 
1,005
 
 
 
 

8,605
Commercial Printing - 0.53%
 
 
 
 
 
Corrections Corporation of America,
 
 
 
 
 
      7.750%, 6-1-17
 
 
3,850
 
 
 
3,792
 
 
 
 


Construction Business - 0.94%
 
 
 
 
 
K. Hovnanian Enterprises, Inc.,
 
 
 
 
 
      11.500%, 5-1-13
 
 
2,500
 
 
 
2,163
KB Home,
 
 
 
 
 
      6.375%, 8-15-11
 
 
4,750
 
 
 
4,583
 
 
 
 

6,746
Consumer Finance - 1.56%
 
 
 
 
 
ASG Consolidated LLC and ASG Finance, Inc.,
 
 
 
 
 
      11.500%, 11-1-11
 
 
7,350
 
 
 
6,725
Ford Motor Credit Company:
 
 
 
 
 
      9.750%, 9-15-10
 
 
2,000
 
 
 
1,916
      8.000%, 12-15-16
 
 
1,500
 
 
 
1,147
Global Cash Access, L.L.C. and Global Cash Access
      Finance Corporation,
 
 
 
 
 
      8.750%, 3-15-12
 
 
1,622
 
 
 
1,500
 
 
 
 

11,288
Consumer Products - 1.63%
 
 
 
 
 
Visant Holding Corp.:
 
 
 
 
 
      8.750%, 12-1-13
 
 
7,025
 
 
 
6,902
      10.250%, 12-1-13
 
 
4,925
 
 
 
4,888
 
 
 
 

11,790
Containers - 2.17%
 
 
 
 
 
BWAY Corporation,
 
 
 
 
 
      10.000%, 4-15-14 (C)
 
 
2,000
 
 
 
1,995
Graham Packaging Company, L.P. and GPC Capital Corp. I:
 
 
 
 
 
      8.500%, 10-15-12
 
 
3,500
 
 
 
3,378
      9.875%, 10-15-14
 
 
2,500
 
 
 
2,325
Owens-Brockway Glass Container Inc.,
 
 
 
 
 
      8.250%, 5-15-13
 
 
8,000
 
 
 
8,040
 
 
 
 

15,738
Data Processing & Outsourced Services - 0.26%
 
 
 
 
 
Euronet Worldwide, Inc., Convertible,
 
 
 
 
 
      3.500%, 10-15-25
 
 
1,000
 
 
 
874
Lender Processing Services, Inc.,
 
 
 
 
 
      8.125%, 7-1-16
 
 
1,000
 
 
 
980
 
 
 
 

1,854
Diversified Banks - 0.20%
 
 
 
 
 
FCE Bank plc,
 
 
 
 
 
      7.875%, 2-15-11 (G)
GBP1,000
 
 
 
1,440
 
 
 
 


Diversified Support Services - 0.41%
 
 
 
 
 
Iron Mountain Incorporated,
 
 
 
 
 
      8.625%, 4-1-13
 
 
$3,000
 
 
 
2,993
 
 
 
 


Diversified Telecom - 0.07%
 
 
 
 
 
Qwest Corporation,
 
 
 
 
 
      8.375%, 5-1-16 (C)
 
 
500
 
 
 
483
 
 
 
 


Electronic Manufacturing Services - 2.81%
 
 
 
 
 
Tyco Electronics Ltd.:
 
 
 
 
 
      6.550%, 10-1-17
 
 
20,575
 
 
 
18,679
      7.125%, 10-1-37
 
 
2,000
 
 
 
1,619
 
 
 
 

20,298
Energy - 1.67%
 
 
 
 
 
Calpine Construction Finance Company, L.P.,
 
 
 
 
 
      8.000%, 6-1-16 (C)
 
 
11,500
 
 
 
11,010
TXU Corp.,
 
 
 
 
 
      6.550%, 11-15-34
 
 
2,250
 
 
 
1,081
 
 
 
 

12,091
Environmental & Facilities Services - 0.62%
 
 
 
 
 
Allied Waste Industries, Inc.,
 
 
 
 
 
      6.500%, 11-15-10
 
 
750
 
 
 
763
Allied Waste Industries, Inc., Convertible,
 
 
 
 
 
      4.250%, 4-15-34
 
 
2,250
 
 
 
2,182
Allied Waste North America, Inc.,
 
 
 
 
 
      7.125%, 5-15-16
 
 
1,500
 
 
 
1,508
 
 
 
 

4,453
Fertilizers & Agricultural Chemicals - 0.48%
 
 
 
 
 
Mosaic Company (The),
 
 
 
 
 
      7.625%, 12-1-16 (C)
 
 
3,400
 
 
 
3,447
 
 
 
 


Finance - 1.87%
 
 
 
 
 
GMAC LLC:
 
 
 
 
 
      5.750%, 9-27-10 (C)
 
 
5,200
 
 
 
4,732
      6.875%, 9-15-11 (B)
 
 
1,424
 
 
 
1,246
Harley-Davidson Funding Corp.,
 
 
 
 
 
      6.800%, 6-15-18 (C)
 
 
8,625
 
 
 
7,483
 
 
 
 

13,461
General Merchandise Stores - 2.34%
 
 
 
 
 
Dollar General Corporation:
 
 
 
 
 
      10.625%, 7-15-15
 
 
3,000
 
 
 
3,240
      11.875%, 7-15-17
 
 
12,650
 
 
 
13,662
 
 
 
 

16,902
Health Care Equipment - 0.71%
 
 
 
 
 
Biomet, Inc.,
 
 
 
 
 
      11.625%, 10-15-17
 
 
3,500
 
 
 
3,430
Wright Medical Group, Inc., Convertible,
 
 
 
 
 
      2.625%, 12-1-14
 
 
2,250
 
 
 
1,699
 
 
 
 

5,129
Health Care Facilities - 4.20%
 
 
 
 
 
HCA - The Healthcare Company,
 
 
 
 
 
      8.750%, 9-1-10
 
 
2,250
 
 
 
2,256
HCA Inc.:
 
 
 
 
 
      6.250%, 2-15-13
 
 
1,750
 
 
 
1,531
      6.750%, 7-15-13
 
 
2,750
 
 
 
2,420
      6.375%, 1-15-15
 
 
2,000
 
 
 
1,625
      9.625%, 11-15-16
 
 
4,207
 
 
 
4,093
      9.875%, 2-15-17 (C)
 
 
500
 
 
 
505
      8.500%, 4-15-19 (C)
 
 
4,750
 
 
 
4,655
HealthSouth Corporation,
 
 
 
 
 
      7.218%, 6-15-14 (D)
 
 
14,445
 
 
 
13,180
 
 
 
 

30,265
Health Care Facilities / Supplies - 3.12%
 
 
 
 
 
Apria Healthcare Group Inc.,
 
 
 
 
 
      11.250%, 11-1-14 (C)
 
 
1,750
 
 
 
1,689
Bio-Rad Laboratories, Inc.,
 
 
 
 
 
      8.000%, 9-15-16 (C)
 
 
1,500
 
 
 
1,485
ReAble Therapeutics Finance LLC and ReAble Therapeutics
      Finance Corporation:
 
 
 
 
 
      10.875%, 11-15-14
 
 
3,150
 
 
 
2,756
      11.750%, 11-15-14
 
 
3,250
 
 
 
2,356
Rural/Metro Corporation,
 
 
 
 
 
      0.000%, 3-15-16 (E)
 
 
320
 
 
 
227
US Oncology Holdings, Inc.,
 
 
 
 
 
      9.125%, 8-15-17 (C)
 
 
7,000
 
 
 
6,948
US Oncology, Inc.:
 
 
 
 
 
      9.000%, 8-15-12
 
 
2,000
 
 
 
2,045
      10.750%, 8-15-14
 
 
5,075
 
 
 
5,024
 
 
 
 

22,530
Hotels, Resorts & Cruise Lines - 2.95%
 
 
 
 
 
Gaylord Entertainment Company:
 
 
 
 
 
      8.000%, 11-15-13
 
 
5,250
 
 
 
4,476
      6.750%, 11-15-14
 
 
8,500
 
 
 
6,354
Royal Caribbean Cruises Ltd.,
 
 
 
 
 
      7.500%, 10-15-27
 
 
850
 
 
 
570
Starwood Hotels & Resorts Worldwide, Inc.:
 
 
 
 
 
      7.875%, 5-1-12
 
 
3,325
 
 
 
3,059
      6.750%, 5-15-18
 
 
8,000
 
 
 
6,859
 
 
 
 

21,318
Household Products - 0.19%
 
 
 
 
 
Sealy Mattress Company,
 
 
 
 
 
      8.250%, 6-15-14
 
 
500
 
 
 
411
Simmons Bedding Company,
 
 
 
 
 
      7.875%, 1-15-14 (F)
 
 
1,000
 
 
 
555
Simmons Company,
 
 
 
 
 
      0.000%, 12-15-14 (E)
 
 
2,955
 
 
 
414
 
 
 
 

1,380
Independent Finance - 0.21%
 
 
 
 
 
American General Finance Corporation,
 
 
 
 
 
      6.900%, 12-15-17
 
 
2,850
 
 
 
1,543
 
 
 
 


Independent Power Producers & Energy Traders - 0.07%
 
 
 
 
 
Sonat Inc.,
 
 
 
 
 
      7.625%, 7-15-11
 
 
500
 
 
 
490
 
 
 
 


Industrial - Other - 0.95%
 
 
 
 
 
General Electric Company,
 
 
 
 
 
      5.000%, 2-1-13
 
 
1,000
 
 
 
1,041
TEGSA,
 
 
 
 
 
      6.000%, 10-1-12
 
 
1,750
 
 
 
1,719
Tyco Electronics Group S.A.,
 
 
 
 
 
      5.950%, 1-15-14
 
 
4,400
 
 
 
4,110
 
 
 
 

6,870
IT Consulting & Other Services - 0.81%
 
 
 
 
 
SunGard Data Systems Inc.,
 
 
 
 
 
      10.625%, 5-15-15 (C)
 
 
6,000
 
 
 
5,880
 
 
 
 


Leisure - 2.32%
 
 
 
 
 
Regal Cinemas Corporation,
 
 
 
 
 
      9.375%, 2-1-12
 
 
2,000
 
 
 
1,938
Speedway Motorsports, Inc.:
 
 
 
 
 
      6.750%, 6-1-13
 
 
2,900
 
 
 
2,784
      8.750%, 6-1-16 (C)
 
 
4,950
 
 
 
5,012
Wallace Theater Holdings Inc.,
 
 
 
 
 
      12.500%, 6-15-13 (C)(D)
 
 
7,250
 
 
 
6,996
 
 
 
 

16,730
Machinery - 1.25%
 
 
 
 
 
Terex Corporation:
 
 
 
 
 
      10.875%, 6-1-16
 
 
7,850
 
 
 
7,850
      8.000%, 11-15-17
 
 
1,500
 
 
 
1,153
 
 
 
 

9,003
Metals / Mining - 1.41%
 
 
 
 
 
Compass Minerals International, Inc.,
 
 
 
 
 
      8.000%, 6-1-19 (C)
 
 
3,850
 
 
 
3,816
Teck Resources Limited:
 
 
 
 
 
      9.750%, 5-15-14 (C)
 
 
1,515
 
 
 
1,568
      10.250%, 5-15-16 (C)
 
 
2,270
 
 
 
2,378
      10.750%, 5-15-19 (C)
 
 
2,270
 
 
 
2,440
 
 
 
 

10,202
Office Electronics - 0.99%
 
 
 
 
 
Xerox Corporation:
 
 
 
 
 
      7.125%, 6-15-10
 
 
850
 
 
 
878
      6.875%, 8-15-11
 
 
922
 
 
 
954
      6.400%, 3-15-16
 
 
1,000
 
 
 
920
      7.200%, 4-1-16
 
 
2,000
 
 
 
1,880
      6.750%, 2-1-17
 
 
2,750
 
 
 
2,502
 
 
 
 

7,134
Office Services & Supplies - 1.04%
 
 
 
 
 
Interface, Inc.:
 
 
 
 
 
      11.375%, 11-1-13 (C)
 
 
5,250
 
 
 
5,434
      9.500%, 2-1-14
 
 
2,270
 
 
 
2,088
 
 
 
 

7,522
Oil & Gas Exploration & Production - 0.91%
 
 
 
 
 
Bill Barrett Corporation,
 
 
 
 
 
      9.875%, 7-15-16
 
 
3,725
 
 
 
3,545
Petrohawk Energy Corporation,
 
 
 
 
 
      9.125%, 7-15-13
 
 
3,000
 
 
 
2,985
 
 
 
 

6,530
Oil & Gas Storage & Transportation - 0.27%
 
 
 
 
 
Inergy, L.P.,
 
 
 
 
 
      8.750%, 3-1-15 (C)
 
 
2,000
 
 
 
1,955
 
 
 
 


Oil Refining & Marketing - 0.16%
 
 
 
 
 
Quicksilver Resources Inc.,
 
 
 
 
 
      11.750%, 1-1-16
 
 
1,100
 
 
 
1,139
 
 
 
 


Packaged Foods & Meats - 3.55%
 
 
 
 
 
Central Garden & Pet Company,
 
 
 
 
 
      9.125%, 2-1-13
 
 
26,795
 
 
 
25,622
 
 
 
 


Paper Packaging - 1.57%
 
 
 
 
 
Sealed Air Corporation:
 
 
 
 
 
      7.875%, 6-15-17 (C)
 
 
3,250
 
 
 
3,221
      6.875%, 7-15-33 (C)
 
 
2,750
 
 
 
2,068
Sealed Air Corporation, Convertible,
 
 
 
 
 
      3.000%, 6-30-33 (B)
 
 
6,000
 
 
 
6,007
 
 
 
 

11,296
Paper Products - 1.29%
 
 
 
 
 
Buckeye Technologies Inc.:
 
 
 
 
 
      8.000%, 10-15-10
 
 
5,750
 
 
 
5,635
      8.500%, 10-1-13
 
 
3,940
 
 
 
3,664
 
 
 
 

9,299
Publishing - 0.92%
 
 
 
 
 
Nielsen Finance LLC and Nielsen Finance Co.:
 
 
 
 
 
      11.500%, 5-1-16 (C)
 
 
2,200
 
 
 
2,140
      0.000%, 8-1-16 (E)
 
 
7,000
 
 
 
4,497
 
 
 
 

6,637
Railroads - 1.28%
 
 
 
 
 
Kansas City Southern de Mexico, S.A. de C.V.,
 
 
 
 
 
      12.500%, 4-1-16 (C)
 
 
4,500
 
 
 
4,568
RailAmerica Inc.,
 
 
 
 
 
      9.250%, 7-1-17 (C)
 
 
4,850
 
 
 
4,680
 
 
 
 

9,248
Restaurants - 0.47%
 
 
 
 
 
NPC International, Inc.,
 
 
 
 
 
      9.500%, 5-1-14
 
 
3,750
 
 
 
3,413
 
 
 
 


Retail Stores - 4.60%
 
 
 
 
 
Federated Department Stores, Inc.,
 
 
 
 
 
      6.790%, 7-15-27
 
 
330
 
 
 
228
Federated Retail Holdings, Inc.:
 
 
 
 
 
      5.350%, 3-15-12
 
 
2,250
 
 
 
2,048
      5.900%, 12-1-16
 
 
3,000
 
 
 
2,444
      6.375%, 3-15-37
 
 
2,450
 
 
 
1,664
Jostens IH Corp.,
 
 
 
 
 
      7.625%, 10-1-12
 
 
3,500
 
 
 
3,491
Limited Brands, Inc.:
 
 
 
 
 
      6.900%, 7-15-17
 
 
2,000
 
 
 
1,731
      8.500%, 6-15-19 (C)
 
 
1,100
 
 
 
1,054
May Department Stores Company (The):
 
 
 
 
 
      5.750%, 7-15-14
 
 
230
 
 
 
196
      7.450%, 10-15-16
 
 
450
 
 
 
381
      6.900%, 1-15-32
 
 
1,695
 
 
 
1,111
Michaels Stores, Inc.,
 
 
 
 
 
      11.375%, 11-1-16
 
 
1,350
 
 
 
884
Neiman Marcus Group, Inc. (The):
 
 
 
 
 
      9.000%, 10-15-15
 
 
5,399
 
 
 
3,041
      10.375%, 10-15-15
 
 
1,000
 
 
 
585
Sally Holdings LLC and Sally Capital Inc.,
 
 
 
 
 
      10.500%, 11-15-16
 
 
6,191
 
 
 
6,129
Sonic Automotive, Inc.,
 
 
 
 
 
      8.625%, 8-15-13
 
 
6,450
 
 
 
4,515
Sonic Automotive, Inc., Convertible,
 
 
 
 
 
      4.250%, 11-30-15 (H)
 
 
2,500
 
 
 
2,159
Toys "R" Us, Inc.,
 
 
 
 
 
      7.875%, 4-15-13
 
 
1,850
 
 
 
1,545
 
 
 
 

33,206
Secondary Oil & Gas Producers - 0.17%
 
 
 
 
 
EXCO Resources, Inc.,
 
 
 
 
 
      7.250%, 1-15-11
 
 
1,250
 
 
 
1,213
 
 
 
 


Semiconductors - 0.15%
 
 
 
 
 
Freescale Semiconductor, Inc.:
 
 
 
 
 
      4.504%, 12-15-14 (D)
 
 
1,000
 
 
 
380
      10.125%, 12-15-16
 
 
2,000
 
 
 
680
 
 
 
 

1,060
Service - Other - 6.34%
 
 
 
 
 
Education Management LLC and Education Management Finance Corp.:
 
 
 
 
 
      8.750%, 6-1-14
 
 
8,500
 
 
 
8,245
      10.250%, 6-1-16
 
 
13,950
 
 
 
13,636
Expedia, Inc.,
 
 
 
 
 
      8.500%, 7-1-16 (C)
 
 
2,435
 
 
 
2,338
Interpublic Group of Companies, Inc. (The),
 
 
 
 
 
      10.000%, 7-15-17 (C)
 
 
2,800
 
 
 
2,821
KAR Holdings, Inc.,
 
 
 
 
 
      8.750%, 5-1-14
 
 
5,625
 
 
 
4,823
Laureate Education, Inc.:
 
 
 
 
 
      10.000%, 8-15-15 (C)
 
 
9,000
 
 
 
7,560
      11.000%, 8-15-15 (C)
 
 
1,085
 
 
 
769
      11.750%, 8-15-17 (C)
 
 
1,500
 
 
 
1,185
Reddy Ice Holdings, Inc.,
 
 
 
 
 
      10.500%, 11-1-12
 
 
1,435
 
 
 
890
West Corporation:
 
 
 
 
 
      9.500%, 10-15-14
 
 
175
 
 
 
153
      11.000%, 10-15-16
 
 
4,020
 
 
 
3,357
 
 
 
 

45,777
Technology - 1.49%
 
 
 
 
 
L-3 Communications Corporation:
 
 
 
 
 
      6.125%, 7-15-13
 
 
4,325
 
 
 
4,076
      6.125%, 1-15-14
 
 
2,070
 
 
 
1,925
Terremark Worldwide, Inc.,
 
 
 
 
 
      12.000%, 6-15-17 (C)
 
 
2,350
 
 
 
2,256
Xerox Capital Trust I,
 
 
 
 
 
      8.000%, 2-1-27
 
 
3,250
 
 
 
2,470
 
 
 
 

10,727
Telecommunications - 0.29%
 
 
 
 
 
CCH II, LLC and CCH II Capital Corp.,
 
 
 
 
 
      10.250%, 9-15-10 (F)
 
 
2,000
 
 
 
2,110
 
 
 
 


Textiles / Apparel / Shoes - 0.84%
 
 
 
 
 
Mohawk Industries, Inc.,
 
 
 
 
 
      6.625%, 1-15-16
 
 
6,825
 
 
 
6,066
 
 
 
 


Utilities - 1.12%
 
 
 
 
 
AES Corporation (The):
 
 
 
 
 
      9.375%, 9-15-10
 
 
2,000
 
 
 
2,020
      9.750%, 4-15-16 (C)
 
 
6,000
 
 
 
6,075
 
 
 
 

8,095
Wireless Telecommunication Service - 1.77%
 
 
 
 
 
Centennial Communications Corp.,
 
 
 
 
 
      6.958%, 1-1-13 (D)
 
 
1,750
 
 
 
1,741
Cricket Communications, Inc.:
 
 
 
 
 
      9.375%, 11-1-14
 
 
1,750
 
 
 
1,724
      7.750%, 5-15-16 (C)
 
 
5,725
 
 
 
5,510
MetroPCS Communications, Inc.,
 
 
 
 
 
      9.250%, 11-1-14 (C)
 
 
500
 
 
 
495
Nextel Communications, Inc.,
 
 
 
 
 
      7.375%, 8-1-15
 
 
3,500
 
 
 
2,791
Nextel Communications, Inc., Convertible,
 
 
 
 
 
      5.250%, 1-15-10
 
 
500
 
 
 
495
 
 
 
 

12,756
 
 
 
 
 
 
 
 
TOTAL CORPORATE DEBT SECURITIES - 78.29%    
$
564,919
(Cost: $543,128)
 
 
 
 
 
 
 
 
 
 
 
 
 
SENIOR LOANS    
     
Broadcast / Outdoor - 0.16%
 
 
 
 
 
High Plains Broadcasting Operating Company, LLC,
 
 
 
 
 
      7.250%, 9-14-16 (D)
 
 
1,669
 
 
 
1,147
 
 
 
 


Cable & Satellite - 0.60%
 
 
 
 
 
Newport Television LLC:
 
 
 
 
 
      7.250%, 9-14-16 (D)
 
 
4,183
 
 
 
2,877
      7.250%, 9-14-16 (D)
 
 
2,121
 
 
 
1,458
 
 
 
 

4,335
Casinos & Gaming - 0.39%
 
 
 
 
 
Las Vegas Sands, LLC:
 
 
 
 
 
      2.060%, 5-23-14 (D)
 
 
3,294
 
 
 
2,317
      2.060%, 5-23-14 (D)
 
 
666
 
 
 
468
 
 
 
 

2,785
Consumer Finance - 0.23%
 
 
 
 
 
Venetian Macau Limited:
 
 
 
 
 
      2.850%, 5-25-13 (D)
 
 
1,630
 
 
 
1,378
      2.850%, 5-25-13 (D)
 
 
365
 
 
 
309
 
 
 
 

1,687
Consumer Products - 0.48%
 
 
 
 
 
Wm. Wrigley Jr. Company,
 
 
 
 
 
      6.500%, 7-17-14 (D)
 
 
3,437
 
 
 
3,449
 
 
 
 


Diversified Chemicals - 0.63%
 
 
 
 
 
Solutia Inc.,
 
 
 
 
 
      7.250%, 2-28-14 (D)
 
 
4,945
 
 
 
4,553
 
 
 
 


Energy - 0.36%
 
 
 
 
 
Calpine Corporation,
 
 
 
 
 
      3.475%, 3-29-14 (D)
 
 
2,964
 
 
 
2,620
 
 
 
 


Health Care Facilities - 0.35%
 
 
 
 
 
CHS/Community Health Systems, Inc.:
 
 
 
 
 
      2.560%, 7-25-14 (D)
 
 
133
 
 
 
120
      2.560%, 7-25-14 (D)
 
 
95
 
 
 
86
      2.924%, 7-25-14 (D)
 
 
1,735
 
 
 
1,559
HCA Inc.,
 
 
 
 
 
      2.848%, 11-16-13 (D)
 
 
854
 
 
 
770
 
 
 
 

2,535
Household Products - 0.40%
 
 
 
 
 
THL Bedding Holding Company,
 
 
 
 
 
      10.500%, 12-19-11 (D)
 
 
3,187
 
 
 
2,884
 
 
 
 


Retail / Food & Drug - 0.96%
 
 
 
 
 
Rite Aid Corporation,
 
 
 
 
 
      9.500%, 6-5-15 (D)
 
 
7,000
 
 
 
6,960
 
 
 
 


Retail Stores - 0.21%
 
 
 
 
 
Neiman Marcus Group, Inc. (The):
 
 
 
 
 
      2.318%, 4-6-13 (D)
 
 
769
 
 
 
585
      2.629%, 4-6-13 (D)
 
 
1,231
 
 
 
935
 
 
 
 

1,520
Service - Other - 1.53%
 
 
 
 
 
iPayment, Inc.:
 
 
 
 
 
      2.315%, 5-10-13 (D)
 
 
1,636
 
 
 
1,202
      2.318%, 5-10-13 (D)
 
 
2,636
 
 
 
1,938
      2.598%, 5-10-13 (D)
 
 
5,349
 
 
 
3,931
Kar Holdings, Inc.:
 
 
 
 
 
      2.560%, 4-20-13 (D)
 
 
2,403
 
 
 
2,118
      2.560%, 4-20-13 (D)
 
 
2,097
 
 
 
1,848
 
 
 
 

11,037
Technology - 0.28%
 
 
 
 
 
Palm Inc.,
 
 
 
 
 
      3.810%, 4-24-14 (D)
 
 
2,722
 
 
 
1,987
 
 
 
 


Telecommunications - 1.21%
 
 
 
 
 
Charter Communications Operating LLC,
 
 
 
 
 
      6.250%, 3-6-14 (D)
 
 
5,970
 
 
 
5,355
Univision Communications Inc.,
 
 
 
 
 
      2.569%, 9-29-14 (D)
 
 
4,500
 
 
 
3,360
 
 
 
 

8,715
Utilities - 0.96%
 
 
 
 
 
Energy Future Competitive Holdings Company and Texas
      Competitive Electric Holdings Company, LLC:
 
 
 
 
 
      3.810%, 10-10-14 (D)
 
 
17
 
 
 
12
      3.821%, 10-10-14 (D)
 
 
2,196
 
 
 
1,568
      3.821%, 10-10-14 (D)
 
 
1,967
 
 
 
1,402
Texas Competitive Electric Holding Company, LLC:
 
 
 
 
 
      3.810%, 10-10-14 (D)
 
 
28
 
 
 
20
      3.810%, 10-10-14 (D)
 
 
15
 
 
 
11
      3.821%, 10-10-14 (D)
 
 
5,444
 
 
 
3,885
 
 
 
 

6,898
 
 
 
 
 
 
 
 
TOTAL SENIOR LOANS - 8.75%    
$
63,112
(Cost: $57,566)
 
 
 
 
 
 
 
 
 
 
 
 
 
SHORT-TERM SECURITIES    
     
Commercial Paper - 11.74%    
 
American Honda Finance Corp.,
 
 
 
 
 
      0.300%, 7-21-09
 
 
7,000
 
 
 
6,999
Clorox Co.:
 
 
 
 
 
      0.500%, 7-13-09
 
 
5,000
 
 
 
4,999
      0.500%, 7-17-09
 
 
6,900
 
 
 
6,898
      0.500%, 7-20-09
 
 
8,000
 
 
 
7,998
Corporacion Andina de Fomento,
 
 
 
 
 
      0.320%, 8-17-09
 
 
5,000
 
 
 
4,998
General Mills, Inc.:
 
 
 
 
 
      0.400%, 7-15-09
 
 
6,000
 
 
 
5,999
      0.480%, 8-3-09
 
 
5,000
 
 
 
4,998
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
 
 
 
 
 
      0.600%, 7-14-09
 
 
9,800
 
 
 
9,798
Kellogg Co.:
 
 
 
 
 
      0.400%, 7-2-09
 
 
16,000
 
 
 
15,999
      0.400%, 7-10-09
 
 
5,000
 
 
 
5,000
Kraft Foods Inc.,
 
 
 
 
 
      0.290%, 7-10-09
 
 
6,000
 
 
 
6,000
Verizon Communications Inc.,
 
 
 
 
 
      0.360%, 7-14-09
 
 
5,000
 
 
 
4,999
 
 
 
 

84,685
Master Note - 0.02%    
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.197%, 7-1-09 (D)
 
 
124
 
 
 
124
 
 
 
 


United States Government Agency Obligations - 0.27%    
 
Federal Home Loan Mortgage Corporation,
 
 
 
 
 
      0.020%, 7-1-09
 
 
1,961
 
 
 
1,961
 
 
 
 


TOTAL SHORT-TERM SECURITIES - 12.03%    
   
$
86,770
(Cost: $86,770)
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 99.19%    
   
$
715,630
(Cost: $688,211)
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.81%      
5,850
               
NET ASSETS - 100.00%    
   
$
721,480
Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
  
Level 2
  
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
$
699
 
 
$
––
 
 
$
––
 
Preferred Stocks
 
––
 
 
 
130
 
 
 
––
 
Corporate Debt Securities
 
––
 
 
 
562,295
 
 
 
2,624
 
Senior Loans
 
––
 
 
 
47,675
 
 
 
15,437
 
Short-Term Securities
 
––
 
 
 
86,770
 
 
 
––
 
 
 
699
 
 
 
696,870
 
 
 
18,061
 
Other Financial Instruments+
 
––
 
 
 
177
 
 
 
––
 
Total
$
699
    
$
697,047
    
$
18,061
  
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
Corporate
Debt
Securities
  
Senior
Loans
Beginning Balance 4-1-09
 
$
––
 
 
$
8,334
 
Net realized gain (loss)
 
 
––
 
 
 
(248
)
Net unrealized appreciation (depreciation)
 
 
44
 
 
 
2,783
 
Net purchases (sales)
 
 
2,580
 
 
 
210
 
Transfers in and/or (out) of Level 3 during the period
 
 
––
 
 
 
4,358
 
Ending Balance 6-30-09  
$
2,624
    
$
15,437
 
Net change in unrealized appreciation (depreciation) for all
      Level 3 investments still held as of 6-30-09		  
$
44
    
$
3,617
 


The following forward foreign currency contracts were outstanding at June 30, 2009:
 
Type
Currency
Principal Amount of
Contract (Denominated
in Indicated Currency)
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
Sell
British Pound
39
8-17-09
 
$
7
 
$
––
Sell
British Pound
39
2-16-10
 
 
7
 
 
––
Sell
British Pound
40
8-16-10
 
 
6
 
 
––
Sell
British Pound
1,040
2-15-11
 
 
157
 
 
––
 
 
 
 
 
$
177
 
$
––
*Not shown due to rounding.
 
(A)No dividends were paid during the preceding 12 months.
 
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors. At June 30, 2009, the total value of these securities amounted to $20,007 or 2.77% of net assets.
 
(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At June 30, 2009, the total value of these securities amounted to $152,295 or 21.11% of net assets.
 
(D)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
(E)Securities do not bear interest for an initial period of time and subsequently become interest bearing.
 
(F)Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy.
 
(G)Principal amounts are denominated in the indicated foreign currency, where applicable (GBP - British Pound).
 
(H)This security currently pays the stated rate but this rate will increase in the future.
 











SCHEDULE OF INVESTMENTS
Ivy Large Cap Growth Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)
   
COMMON STOCKS  
Shares
 
Value
Aerospace & Defense - 2.86%    
 
Lockheed Martin Corporation
 
 
178
 
 
$
14,331
United Technologies Corporation
 
 
118
 
 
 
6,147
 
 
 
 

20,478
Asset Management & Custody Banks - 2.28%    
 
BlackRock, Inc., Class A
 
 
44
 
 
 
7,631
T. Rowe Price Group, Inc.
 
 
208
 
 
 
8,653
 
 
 
 

16,284
Automotive Retail - 2.01%    
 
AutoZone, Inc. (A)
 
 
40
 
 
 
5,999
O'Reilly Automotive, Inc. (A)
 
 
220
 
 
 
8,366
 
 
 
 

14,365
Biotechnology - 5.51%    
 
Genzyme Corporation (A)
 
 
64
 
 
 
3,557
Gilead Sciences, Inc. (A)
 
 
764
 
 
 
35,800
 
 
 
 

39,357
Casinos & Gaming - 0.38%    
 
Wynn Resorts, Limited (A)
 
 
76
 
 
 
2,693
 
 
 
 
Communications Equipment - 11.95%    
 
Cisco Systems, Inc. (A)
1,267
 
 
 
23,625
QUALCOMM Incorporated
1,010
 
 
 
45,628
Research In Motion Limited (A)
 
 
227
 
 
 
16,100
 
 
 
 

85,353
Computer Hardware - 10.01%    
 
Apple Inc. (A)
 
 
265
 
 
 
37,787
Hewlett-Packard Company
 
 
873
 
 
 
33,726
 
 
 
 

71,513
Construction & Farm Machinery & Heavy Trucks - 1.17%    
 
Deere & Company
 
 
209
 
 
 
8,346
 
 
 
 
Data Processing & Outsourced Services - 4.17%    
 
MasterCard Incorporated, Class A
 
 
43
 
 
 
7,161
Visa Inc., Class A
 
 
364
 
 
 
22,675
 
 
 
 

29,836
Department Stores - 2.72%    
 
Kohl's Corporation (A)
 
 
454
 
 
 
19,409
 
 
 
 
Electrical Components & Equipment - 1.38%    
 
Emerson Electric Co.
 
 
304
 
 
 
9,837
 
 
 
 
Fertilizers & Agricultural Chemicals - 2.37%    
 
Monsanto Company
 
 
228
 
 
 
16,950
 
 
 
 
General Merchandise Stores - 0.68%    
 
Target Corporation
 
 
122
 
 
 
4,831
 
 
 
 
Health Care Equipment - 2.75%    
 
Baxter International Inc.
 
 
371
 
 
 
19,643
 
 
 
 
Home Entertainment Software - 0.70%    
 
Activision Blizzard, Inc. (A)
 
 
399
 
 
 
5,036
 
 
 
 
Home Improvement Retail - 3.59%    
 
Home Depot, Inc. (The)
 
 
847
 
 
 
20,021
Lowe's Companies, Inc.
 
 
290
 
 
 
5,633
 
 
 
 

25,654
Household Products - 4.82%    
 
Colgate-Palmolive Company
 
 
487
 
 
 
34,465
 
 
 
 
Hypermarkets & Super Centers - 3.68%    
 
Costco Wholesale Corporation
 
 
112
 
 
 
5,132
Wal-Mart Stores, Inc.
 
 
437
 
 
 
21,178
 
 
 
 

26,310
Industrial Gases - 2.49%    
 
Praxair, Inc.
 
 
250
 
 
 
17,796
 
 
 
 
Internet Software & Services - 4.68%    
 
Google Inc., Class A (A)
 
 
79
 
 
 
33,432
 
 
 
 
Investment Banking & Brokerage - 0.37%    
 
Charles Schwab Corporation (The)
 
 
152
 
 
 
2,668
 
 
 
 
Life Sciences Tools & Services - 0.81%    
 
Thermo Fisher Scientific Inc. (A)
 
 
143
 
 
 
5,822
 
 
 
 
Oil & Gas Equipment & Services - 5.57%    
 
Schlumberger Limited
 
 
440
 
 
 
23,781
Smith International, Inc.
 
 
130
 
 
 
3,346
Weatherford International Ltd. (A)
 
 
650
 
 
 
12,712
 
 
 
 

39,839
Other Diversified Financial Services - 3.81%    
 
JPMorgan Chase & Co.
 
 
798
 
 
 
27,220
 
 
 
 
Pharmaceuticals - 3.36%    
 
Abbott Laboratories
 
 
511
 
 
 
24,034
 
 
 
 
Restaurants - 5.07%    
 
McDonald's Corporation
 
 
438
 
 
 
25,153
YUM! Brands, Inc.
 
 
336
 
 
 
11,192
 
 
 
 

36,345
Semiconductors - 3.74%    
 
Microchip Technology Incorporated
1,184
 
 
 
26,708
 
 
 
 
Soft Drinks - 0.91%    
 
Coca-Cola Company (The)
 
 
136
 
 
 
6,507
 
 
 
 
Specialized Finance - 3.10%    
 
CME Group Inc.
 
 
71
 
 
 
22,164
 
 
 
 
Specialty Chemicals - 1.03%    
 
Ecolab Inc.
 
 
189
 
 
 
7,357
 
 
 
 


TOTAL COMMON STOCKS - 97.97%    
   
$
700,252
(Cost: $675,061)
 
 
 
 
 
             
               
SHORT-TERM SECURITIES  
Principal
   
Commercial Paper - 1.66%    
 
Colgate-Palmolive Company,
 
 
 
 
   
      0.100%, 7-6-09
 
$
2,000
 
 
 
2,000
John Deere Capital Corporation,
 
 
 
 
   
      0.130%, 7-1-09
 
 
653
 
 
 
653
Johnson & Johnson,
 
 
 
 
   
      0.100%, 7-13-09
 
 
2,000
 
 
 
2,000
McCormick & Co. Inc.,
 
 
 
 
   
      0.250%, 7-1-09
 
 
2,500
 
 
 
2,500
Straight-A Funding LLC (Federal Financing Bank),
 
 
 
 
   
      0.260%, 7-24-09
 
 
4,755
 
 
 
4,754
 
 
 
 

11,907
Master Note - 0.12%    
 
Toyota Motor Credit Corporation,
 
 
 
 
   
      0.197%, 7-1-09 (B)
 
 
851
 
 
 
851
 
 
 
 


TOTAL SHORT-TERM SECURITIES - 1.78%    
   
$
12,758
(Cost: $12,758)
 
 
 
 
 
             
TOTAL INVESTMENT SECURITIES - 99.75%    
   
$
713,010
(Cost: $687,819)
 
 
 
 
 
             
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.25%      
1,775
             
NET ASSETS - 100.00%    
   
$
714,785
             

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
 
Level 2
  
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
$
700,252
 
 
$
––
 
 
$
––
 
Short-Term Securities
 
––
 
 
 
12,758
   
 
––
 
 
 
700,252
 
 
 
12,758
 
 
 
––
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
$
700,252
    
$
12,758
    
$
––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
(A)No dividends were paid during the preceding 12 months.
 
(B)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 








SCHEDULE OF INVESTMENTS
Ivy Limited-Term Bond Fund
      (in thousands)
  JUNE 30, 2009 (UNAUDITED)
   
CORPORATE DEBT SECURITIES  
Principal
  
Value
Airlines - 0.90%
 
 
 
 
 
Southwest Airlines Co.,
 
 
 
 
 
      6.500%, 3-1-12
 
$
5,000
 
 
$
5,182


Banking - 3.95%
 
 
 
 
 
Citigroup Inc. (Federal Deposit Insurance Corporation),
 
 
 
 
 
      2.875%, 12-9-11 (A)
 
 
6,000
 
 
 
6,172
JPMorgan Chase & Co.:
 
 
 
 
 
      4.600%, 1-17-11
 
 
1,225
 
 
 
1,261
      5.375%, 10-1-12
 
 
2,000
 
 
 
2,095
      4.650%, 6-1-14
 
 
5,000
 
 
 
4,989
Regions Bank (Federal Deposit Insurance Corporation),
 
 
 
 
 
      3.250%, 12-9-11 (A)
 
 
6,000
 
 
 
6,225
State Street Corporation,
 
 
 
 
 
      4.300%, 5-30-14
 
 
2,000
 
 
 
1,978
 
 
 
 

22,720
Beverage / Bottling - 1.37%
 
 
 
 
 
Anheuser-Busch InBev Worldwide Inc.,
 
 
 
 
 
      5.375%, 11-15-14 (B)
 
 
5,500
 
 
 
5,552
Bottling Group, LLC,
 
 
 
 
 
      6.950%, 3-15-14
 
 
2,000
 
 
 
2,282
 
 
 
 

7,834
Biotechnology - 0.44%
 
 
 
 
 
Amgen Inc.,
 
 
 
 
 
      4.000%, 11-18-09
 
 
2,500
 
 
 
2,534


Cable & Satellite - 0.18%
 
 
 
 
 
Cox Communications, Inc.,
 
 
 
 
 
      4.625%, 1-15-10
 
 
1,000
 
 
 
1,005


Chemicals - 0.90%
 
 
 
 
 
Dow Chemical Company (The),
 
 
 
 
 
      7.600%, 5-15-14
 
 
5,000
 
 
 
5,152


Communications Equipment - 0.92%
 
 
 
 
 
Cisco Systems, Inc.,
 
 
 
 
 
      5.250%, 2-22-11
 
 
5,000
 
 
 
5,272


Computer Hardware - 1.58%
 
 
 
 
 
Dell Inc.,
 
 
 
 
 
      3.375%, 6-15-12
 
 
2,000
 
 
 
2,036
Electronic Data Systems Corporation,
 
 
 
 
 
      7.125%, 10-15-09
 
 
2,500
 
 
 
2,546
Hewlett-Packard Company,
 
 
 
 
 
      6.500%, 7-1-12
 
 
1,500
 
 
 
1,651
International Business Machines Corporation,
 
 
 
 
 
      6.500%, 10-15-13
 
 
2,500
 
 
 
2,796
 
 
 
 

9,029
Conglomerate / Diversified Mfg - 0.55%
 
 
 
 
 
Honeywell International Inc.,
 
 
 
 
 
      3.875%, 2-15-14
 
 
3,100
 
 
 
3,169


Construction & Farm Machinery & Heavy Trucks - 1.75%
 
 
 
 
 
Caterpillar Inc.:
 
 
 
 
 
      7.250%, 9-15-09
 
 
2,500
 
 
 
2,528
      7.000%, 12-15-13
 
 
2,000
 
 
 
2,208
John Deere Capital Corporation,
 
 
 
 
 
      5.250%, 10-1-12
 
 
5,000
 
 
 
5,282
 
 
 
 

10,018
Consumer Finance - 1.40%
 
 
 
 
 
American Express Travel Related Services Co., Inc.,
 
 
 
 
 
      5.250%, 11-21-11 (C)
 
 
6,000
 
 
 
5,965
Capital One Financial Corporation,
 
 
 
 
 
      7.375%, 5-23-14
 
 
2,000
 
 
 
2,063
 
 
 
 

8,028
Distillers & Vintners - 0.88%
 
 
 
 
 
Diageo Capital plc,
 
 
 
 
 
      4.375%, 5-3-10
 
 
5,000
 
 
 
5,075


Diversified Banks - 0.27%
 
 
 
 
 
Wells Fargo Financial, Inc.,
 
 
 
 
 
      5.500%, 8-1-12
 
 
1,487
 
 
 
1,546


Diversified Metals & Mining - 0.93%
 
 
 
 
 
BHP Billiton Finance (USA) Limited:
 
 
 
 
 
      5.000%, 12-15-10
 
 
1,000
 
 
 
1,040
      5.500%, 4-1-14
 
 
4,000
 
 
 
4,292
 
 
 
 

5,332
Electric - 2.66%
 
 
 
 
 
NorthWestern Corporation,
 
 
 
 
 
      5.875%, 11-1-14
 
 
2,000
 
 
 
2,035
Oncor Electric Delivery Company,
 
 
 
 
 
      6.375%, 5-1-12
 
 
3,000
 
 
 
3,166
SCANA Corporation,
 
 
 
 
 
      6.250%, 2-1-12
 
 
5,000
 
 
 
5,227
Southern Power Company,
 
 
 
 
 
      6.250%, 7-15-12
 
 
4,500
 
 
 
4,817
 
 
 
 

15,245
Environmental & Facilities Services - 0.78%
 
 
 
 
 
Allied Waste Industries, Inc.,
 
 
 
 
 
      6.500%, 11-15-10
 
 
4,375
 
 
 
4,452


Finance - Other - 2.67%
 
 
 
 
 
General Electric Capital Corporation:
 
 
 
 
 
      1.259%, 4-10-12 (D)
 
 
1,000
 
 
 
935
      5.250%, 10-19-12
 
 
550
 
 
 
566
General Electric Capital Corporation (Federal Deposit
      Insurance Corporation),
 
 
 
 
 
      3.000%, 12-9-11 (A)
 
 
6,000
 
 
 
6,189
TIAA Global Markets, Inc.,
 
 
 
 
 
      5.125%, 10-10-12 (B)
 
 
2,250
 
 
 
2,354
Western Union Company (The),
 
 
 
 
 
      6.500%, 2-26-14
 
 
5,000
 
 
 
5,339
 
 
 
 

15,383
Food Processors - 2.06%
 
 
 
 
 
Cargill, Incorporated,
 
 
 
 
 
      5.600%, 9-15-12 (B)
 
 
3,325
 
 
 
3,461
General Mills, Inc.,
 
 
 
 
 
      6.000%, 2-15-12
 
 
5,000
 
 
 
5,382
Kellogg Company,
 
 
 
 
 
      4.450%, 5-30-16
 
 
2,950
 
 
 
2,953
 
 
 
 

11,796
Gas - Local Distribution - 1.58%
 
 
 
 
 
AGL Capital Corporation,
 
 
 
 
 
      7.125%, 1-14-11
 
 
4,000
 
 
 
4,106
DCP Midstream, LLC,
 
 
 
 
 
      9.700%, 12-1-13 (B)
 
 
4,500
 
 
 
4,962
 
 
 
 

9,068
Gas Pipe Lines - 1.04%
 
 
 
 
 
Maritimes & Northeast Pipeline, L.L.C.,
 
 
 
 
 
      7.500%, 5-31-14 (C)
 
 
6,000
 
 
 
5,988


Home Improvement Retail - 0.70%
 
 
 
 
 
Lowe's Companies, Inc.,
 
 
 
 
 
      5.600%, 9-15-12
 
 
3,736
 
 
 
3,996


Hypermarkets & Super Centers - 0.89%
 
 
 
 
 
Wal-Mart Stores, Inc.:
 
 
 
 
 
      4.550%, 5-1-13
 
 
3,000
 
 
 
3,145
      3.000%, 2-3-14
 
 
2,000
 
 
 
1,974
 
 
 
 

5,119
Industrial Machinery - 0.92%
 
 
 
 
 
Illinois Tool Works Inc.,
 
 
 
 
 
      5.150%, 4-1-14 (B)
 
 
5,000
 
 
 
5,257


Information / Data Technology - 0.07%
 
 
 
 
 
IBM International Group Capital LLC,
 
 
 
 
 
      5.050%, 10-22-12
 
 
400
 
 
 
428


Integrated Oil & Gas - 1.89%
 
 
 
 
 
Chevron Corporation,
 
 
 
 
 
      3.950%, 3-3-14
 
 
5,000
 
 
 
5,150
ConocoPhillips,
 
 
 
 
 
      4.600%, 1-15-15
 
 
5,500
 
 
 
5,656
 
 
 
 

10,806
Integrated Telecommunication Services - 0.47%
 
 
 
 
 
AT&T Inc.,
 
 
 
 
 
      4.950%, 1-15-13
 
 
500
 
 
 
520
AT&T Wireless Services, Inc.,
 
 
 
 
 
      7.875%, 3-1-11
 
 
2,000
 
 
 
2,157
 
 
 
 

2,677
Investment Banking & Brokerage - 2.09%
 
 
 
 
 
Goldman Sachs Group, Inc. (The),
 
 
 
 
 
      6.875%, 1-15-11
 
 
3,500
 
 
 
3,700
Morgan Stanley (Federal Deposit Insurance Corporation),
 
 
 
 
 
      3.250%, 12-1-11 (A)
 
 
8,000
 
 
 
8,300
 
 
 
 

12,000
Life Insurance - 1.52%
 
 
 
 
 
MetLife Global Funding I,
 
 
 
 
 
      5.125%, 6-10-14 (C)
 
 
3,500
 
 
 
3,474
MetLife, Inc.,
 
 
 
 
 
      6.125%, 12-1-11
 
 
5,000
 
 
 
5,235
 
 
 
 

8,709
Metals / Mining - 0.97%
 
 
 
 
 
Rio Tinto Finance (USA) Limited,
 
 
 
 
 
      8.950%, 5-1-14
 
 
5,000
 
 
 
5,558


Multi-Utilities - 0.09%
 
 
 
 
 
Duke Energy Corporation,
 
 
 
 
 
      6.250%, 1-15-12
 
 
500
 
 
 
538


Oil & Gas - 1.53%
 
 
 
 
 
Petro-Canada,
 
 
 
 
 
      4.000%, 7-15-13
 
 
4,500
 
 
 
4,371
Western Oil Sands Inc.,
 
 
 
 
 
      8.375%, 5-1-12
 
 
4,000
 
 
 
4,406
 
 
 
 

8,777
Oilfield Machinery & Service - 0.91%
 
 
 
 
 
Weatherford International, Inc.,
 
 
 
 
 
      5.950%, 6-15-12
 
 
5,000
 
 
 
5,222


Other Diversified Financial Services - 1.08%
 
 
 
 
 
Bank of America Corporation (Federal Deposit
      Insurance Corporation),
 
 
 
 
 
      3.125%, 6-15-12 (A)
 
 
6,000
 
 
 
6,190


Packaged Foods & Meats - 0.96%
 
 
 
 
 
Kraft Foods, Inc.,
 
 
 
 
 
      6.750%, 2-19-14
 
 
5,000
 
 
 
5,486


Pharmaceuticals - 4.80%
 
 
 
 
 
Abbott Laboratories:
 
 
 
 
 
      3.750%, 3-15-11
 
 
2,000
 
 
 
2,068
      5.600%, 5-15-11
 
 
500
 
 
 
534
Eli Lilly and Company,
 
 
 
 
 
      4.200%, 3-6-14
 
 
5,775
 
 
 
5,949
Merck & Co., Inc.,
 
 
 
 
 
      4.000%, 6-30-15
 
 
2,000
 
 
 
2,036
Novartis Capital Corporation,
 
 
 
 
 
      4.125%, 2-10-14
 
 
2,000
 
 
 
2,059
Pfizer Inc.,
 
 
 
 
 
      5.350%, 3-15-15
 
 
5,000
 
 
 
5,376
Roche Holdings Ltd,
 
 
 
 
 
      5.000%, 3-1-14 (B)
 
 
4,000
 
 
 
4,185
Wyeth,
 
 
 
 
 
      5.500%, 2-1-14
 
 
5,000
 
 
 
5,353
 
 
 
 

27,560
Property & Casualty Insurance - 1.82%
 
 
 
 
 
Berkshire Hathaway Finance Corporation:
 
 
 
 
 
      4.000%, 4-15-12 (B)
 
 
8,000
 
 
 
8,269
      4.750%, 5-15-12
 
 
550
 
 
 
584
      5.000%, 8-15-13
 
 
1,500
 
 
 
1,574
 
 
 
 

10,427
Retail Stores - Food / Drug - 1.10%
 
 
 
 
 
Walgreen Co.,
 
 
 
 
 
      4.875%, 8-1-13
 
 
6,000
 
 
 
6,369


Retail Stores - Other - 0.78%
 
 
 
 
 
Best Buy Co., Inc.,
 
 
 
 
 
      6.750%, 7-15-13
 
 
4,300
 
 
 
4,452


Service - Other - 0.75%
 
 
 
 
 
Waste Management, Inc.,
 
 
 
 
 
      6.375%, 3-11-15
 
 
4,175
 
 
 
4,328


Soft Drinks - 1.87%
 
 
 
 
 
Coca-Cola Company (The),
 
 
 
 
 
      3.625%, 3-15-14
 
 
4,200
 
 
 
4,250
Coca-Cola Enterprises Inc.,
 
 
 
 
 
      4.250%, 3-1-15
 
 
3,000
 
 
 
3,035
PepsiCo, Inc.,
 
 
 
 
 
      3.750%, 3-1-14
 
 
3,400
 
 
 
3,470
 
 
 
 

10,755
Systems Software - 0.96%
 
 
 
 
 
Microsoft Corporation,
 
 
 
 
 
      2.950%, 6-1-14
 
 
5,575
 
 
 
5,537


Telecommunications - 1.66%
 
 
 
 
 
British Telecommunications plc,
 
 
 
 
 
      5.150%, 1-15-13
 
 
1,000
 
 
 
997
Deutsche Telekom International Finance B.V.,
 
 
 
 
 
      4.875%, 7-8-14
 
 
4,000
 
 
 
4,027
Verizon New York Inc.,
 
 
 
 
 
      6.875%, 4-1-12
 
 
4,250
 
 
 
4,506
 
 
 
 

9,530
Trucking & Shipping - 1.18%
 
 
 
 
 
Federal Express Corporation,
 
 
 
 
 
      9.650%, 6-15-12
 
 
6,005
 
 
 
6,745


TOTAL CORPORATE DEBT SECURITIES - 55.82%    
$
320,294
(Cost: $307,711)
 
 
 
 
 

MUNICIPAL BONDS - TAXABLE    
     
Massachusetts - 1.07%
 
 
 
 
 
Massachusetts Housing Finance Agency, Single Family Housing
      Revenue Bonds, Series 81,
 
 
 
 
 
      7.700%, 6-1-32
 
 
5,950
 
 
 
6,146


Missouri - 0.09%
 
 
 
 
 
Missouri Development Finance Board, Taxable Infrastructure
      Facilities Revenue Bonds (City of Independence, Missouri -
      Crackerneck Creek Project), Series 2006A,
 
 
 
 
 
      5.350%, 3-1-10
 
 
515
 
 
 
522


Nebraska - 1.12%
 
 
 
 
 
Nebraska Public Power District, General Revenue Bonds,
      2008 Series A,
 
 
 
 
 
      5.140%, 1-1-14
 
 
6,150
 
 
 
6,407


Rhode Island - 0.88%
 
 
 
 
 
Providence Health & Services Obligated Group, Direct
      Obligation Notes, Series 2009A,
 
 
 
 
 
      5.050%, 10-1-14
 
 
5,000
 
 
 
5,078


TOTAL MUNICIPAL BONDS - TAXABLE - 3.16%    
$
18,153
(Cost: $17,914)
 
 
 
 
 

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS    
     
Agency Obligations - 10.55%    
 
Federal Agricultural Mortgage Corporation Guaranteed Notes
      Trust 2006-1,
 
 
 
 
 
      4.875%, 1-14-11 (B)
 
 
3,000
 
 
 
3,137
Federal Farm Credit Bank:
 
 
 
 
 
      4.990%, 12-24-14
 
 
1,500
 
 
 
1,527
      4.750%, 9-30-15
 
 
4,000
 
 
 
4,281
      5.250%, 1-6-16
 
 
4,000
 
 
 
4,390
Federal Home Loan Bank:
 
 
 
 
 
      3.375%, 9-10-10
 
 
5,000
 
 
 
5,161
      4.375%, 9-13-13
 
 
6,000
 
 
 
6,403
      5.000%, 1-15-15
 
 
1,500
 
 
 
1,532
Federal Home Loan Mortgage Corporation:
 
 
 
 
 
      4.500%, 7-6-10
 
 
5,000
 
 
 
5,195
      3.125%, 10-25-10
 
 
2,500
 
 
 
2,578
Federal National Mortgage Association:
 
 
 
 
 
      5.375%, 8-15-09
 
 
5,000
 
 
 
5,032
      2.000%, 3-2-11
 
 
5,000
 
 
 
5,037
      2.500%, 3-19-12
 
 
5,000
 
 
 
5,037
      4.000%, 1-18-13
 
 
2,500
 
 
 
2,602
      4.375%, 7-17-13
 
 
8,000
 
 
 
8,545
 
 
 
 

60,457
Mortgage-Backed Obligations - 9.02%    
 
Federal Home Loan Mortgage Corporation Adjustable Rate
      Participation Certificates,
 
 
 
 
 
      5.441%, 4-1-36 (D)
 
 
679
 
 
 
708
Federal Home Loan Mortgage Corporation Agency REMIC/CMO:
 
 
 
 
 
      4.250%, 3-15-31
 
 
237
 
 
 
240
      5.000%, 5-15-31
 
 
1,724
 
 
 
1,769
      5.500%, 12-15-31
 
 
3,000
 
 
 
3,137
      4.000%, 11-15-32
 
 
682
 
 
 
693
      5.500%, 5-15-34
 
 
602
 
 
 
635
Federal Home Loan Mortgage Corporation Agency REMIC/CMO
      (Interest Only), (E)
 
 
 
 
 
      5.000%, 6-15-24
 
 
521
 
 
 
11
Federal Home Loan Mortgage Corporation Fixed Rate
      Participation Certificates:
 
 
 
 
 
      4.500%, 4-1-18
 
 
697
 
 
 
717
      4.500%, 10-1-20
 
 
4,683
 
 
 
4,855
      5.500%, 3-1-22
 
 
678
 
 
 
711
      6.000%, 11-1-36
 
 
2,537
 
 
 
2,654
Federal National Mortgage Association Agency REMIC/CMO:
 
 
 
 
 
      5.000%, 9-25-18
 
 
1,500
 
 
 
1,568
      5.500%, 7-15-32
 
 
5,000
 
 
 
5,219
      5.500%, 10-25-32
 
 
1,000
 
 
 
1,031
      5.000%, 12-15-34
 
 
5,000
 
 
 
5,204
Federal National Mortgage Association Agency REMIC/CMO
      (Interest Only), (E)
 
 
 
 
 
      5.500%, 11-25-36
 
 
1,407
 
 
 
181
Federal National Mortgage Association Fixed Rate
      Pass-Through Certificates:
 
 
 
 
 
      5.000%, 11-1-17
 
 
375
 
 
 
393
      5.000%, 3-1-18
 
 
592
 
 
 
620
      4.500%, 6-1-19
 
 
463
 
 
 
479
      4.500%, 8-1-19
 
 
730
 
 
 
756
      5.000%, 12-1-19
 
 
422
 
 
 
440
      5.500%, 11-1-22
 
 
1,385
 
 
 
1,459
      5.000%, 5-1-28
 
 
2,035
 
 
 
2,085
      5.000%, 6-25-32
 
 
3,250
 
 
 
3,366
      5.500%, 2-1-33
 
 
770
 
 
 
799
      6.500%, 11-1-37
 
 
2,379
 
 
 
2,529
      6.000%, 7-1-38
 
 
5,348
 
 
 
5,597
      5.500%, 1-25-39
 
 
756
 
 
 
778
Government National Mortgage Association Agency REMIC/CMO,
 
 
 
 
 
      4.585%, 8-16-34
 
 
1,700
 
 
 
1,753
Government National Mortgage Association Fixed Rate
      Pass-Through Certificates:
 
 
 
 
 
      5.000%, 12-15-17
 
 
644
 
 
 
679
      4.000%, 9-15-18
 
 
776
 
 
 
796
 
 
 
 

51,862
TOTAL UNITED STATES GOVERNMENT
      AGENCY OBLIGATIONS - 19.57% 		   
$
112,319
(Cost: $109,242)
 
 
 
 
 

UNITED STATES GOVERNMENT OBLIGATIONS - 15.91%    
     
Treasury Obligations    
 
United States Treasury Notes:
 
 
 
 
 
      3.125%, 11-30-09
 
 
5,000
 
 
 
5,058
      4.000%, 4-15-10
 
 
5,000
 
 
 
5,139
      2.625%, 5-31-10
 
 
5,000
 
 
 
5,097
      4.500%, 11-15-10
 
 
5,000
 
 
 
5,260
      4.500%, 2-28-11
 
 
5,000
 
 
 
5,301
      5.125%, 6-30-11
 
 
5,000
 
 
 
5,394
      5.000%, 8-15-11
 
 
3,000
 
 
 
3,245
      4.625%, 8-31-11
10,000
 
 
 
10,722
      4.500%, 11-30-11
 
 
6,000
 
 
 
6,460
      4.625%, 2-29-12
 
 
5,000
 
 
 
5,419
      4.750%, 5-31-12
 
 
5,000
 
 
 
5,452
      4.125%, 8-31-12
 
 
4,500
 
 
 
4,835
      3.875%, 2-15-13
 
 
6,000
 
 
 
6,398
      3.375%, 7-31-13
10,000
 
 
 
10,482
      4.250%, 8-15-13
 
 
6,500
 
 
 
7,030
(Cost: $89,263)
 
 
 
 
$
91,292
 
 
 
 
 
 
SHORT-TERM SECURITIES - 5.04%    
     
Commercial Paper    
 
Colgate-Palmolive Company,
 
 
 
 
 
      0.100%, 7-6-09
 
 
2,300
 
 
 
2,300
General Mills, Inc.:
 
 
 
 
 
      0.400%, 7-15-09
 
 
3,000
 
 
 
3,000
      0.350%, 7-28-09
 
 
2,000
 
 
 
1,999
Kellogg Co.:
 
 
 
 
 
      0.400%, 7-2-09
 
 
2,106
 
 
 
2,106
      0.400%, 7-10-09
 
 
5,000
 
 
 
5,000
McCormick & Co. Inc.,
 
 
 
 
 
      0.250%, 7-1-09
 
 
2,500
 
 
 
2,500
PACCAR Financial Corp.,
 
 
 
 
 
      0.160%, 7-8-09
 
 
4,976
 
 
 
4,976
Roche Holdings, Inc.,
 
 
 
 
 
      0.190%, 7-9-09
 
 
5,000
 
 
 
4,999
Straight-A Funding, LLC (Federal Financing Bank):
 
 
 
 
 
      0.270%, 7-14-09
 
 
1,500
 
 
 
1,500
      0.260%, 7-24-09
 
 
539
 
 
 
539
(Cost: $28,919)
 
 
 
 
$
28,919

TOTAL INVESTMENT SECURITIES - 99.50%    
   
$
570,977
(Cost: $553,049)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.50%      
2,864

NET ASSETS - 100.00%    
   
$
573,841

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
 
Level 2
 
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Corporate Debt Securities
$
––
 
 
$
320,294
 
 
$
––
 
Municipal Bonds
 
––
 
 
 
18,153
 
 
 
––
 
United States Government Agency Obligations
 
––
 
 
 
109,182
 
 
 
3,137
 
United States Government Obligations
 
––
 
 
 
91,292
 
 
 
––
 
Short-Term Securities
 
––
 
 
 
28,919
 
 
 
––
 
 
 
––
 
 
 
567,840
 
 
 
3,137
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
$
––
 
 
$
567,840
 
 
$
3,137
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
 
United States
Government
Agency
Obligations
Beginning Balance 4-1-09
 
$3,103
 
Net realized gain (loss)
 
––
 
Net unrealized appreciation (depreciation)
 
34
 
Net purchases (sales)
 
––
 
Transfers in and/or (out) of Level 3 during the period
 
––
 
Ending Balance 6-30-09
 
$3,137
 
Net change in unrealized appreciation (depreciation)
        for all Level 3 investments still held as of 6-30-09
 
$     34
 
 
(A)Security is fully guaranteed by the Federal Deposit Insurance Corporation for both interest and principal under the Debt Guarantee Program of the Temporary Liquidity Guarantee Program.
 
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At June 30, 2009, the total value of these securities amounted to $37,177 or 6.48% of net assets.
 
(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors. At June 30, 2009, the total value of these securities amounted to $15,427 or 2.69% of net assets.
 
(D)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
(E)Amount shown in principal column represents notional amount for computation of interest.
 
The following acronyms are used throughout this schedule:
CMO = Collateralized Mortgage Obligation
REMIC = Real Estate Mortgage Investment Conduit
 









SCHEDULE OF INVESTMENTS
Ivy Mid Cap Growth Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)
   
COMMON STOCKS  
Shares
 
Value
 
Air Freight & Logistics - 3.86%    
 
 
C.H. Robinson Worldwide, Inc.
 
 
49
 
 
$
2,561
 
Expeditors International of Washington, Inc.
 
 
70
 
 
 
2,340
 
 
 
 
 

4,901
 
Apparel Retail - 3.82%    
 
 
J. Crew Group, Inc. (A)
 
 
100
 
 
 
2,707
 
Urban Outfitters, Inc. (A)
 
 
103
 
 
 
2,152
 
 
 
 
 

4,859
 
Application Software - 2.34%    
 
 
Solera Holdings, Inc. (A)
 
 
117
 
 
 
2,972
 
 
 
 
 
 
Auto Parts & Equipment - 0.52%    
 
 
BorgWarner Inc.
 
 
19
 
 
 
659
 
 
 
 
 
 
Automotive Retail - 1.30%    
 
 
Penske Automotive Group, Inc.
 
 
100
 
 
 
1,657
 
 
 
 
 
 
Brewers - 0.92%    
 
 
Molson Coors Brewing Company, Class B
 
 
28
 
 
 
1,170
 
 
 
 
 
 
Catalog Retail - 1.62%    
 
 
Coldwater Creek Inc. (A)
 
 
339
 
 
 
2,056
 
 
 
 
 
 
Computer Storage & Peripherals - 2.01%    
 
 
NetApp, Inc. (A)
 
 
129
 
 
 
2,553
 
 
 
 
 
 
Consumer Finance - 1.45%    
 
 
Discover Financial Services
 
 
180
 
 
 
1,845
 
 
 
 
 
 
Data Processing & Outsourced Services - 5.12%    
 
 
Global Payments Inc.
 
 
95
 
 
 
3,553
 
Paychex, Inc.
 
 
117
 
 
 
2,960
 
 
 
 
 

6,513
 
Department Stores - 3.69%    
 
 
Kohl's Corporation (A)
 
 
50
 
 
 
2,127
 
Macy's Inc.
 
 
65
 
 
 
762
 
Nordstrom, Inc.
 
 
59
 
 
 
1,182
 
Saks Incorporated (A)
 
 
140
 
 
 
622
 
 
 
 
 

4,693
 
Distillers & Vintners - 1.66%    
 
 
Brown-Forman Corporation, Class B
 
 
49
 
 
 
2,111
 
 
 
 
 
 
Electrical Components & Equipment - 1.94%    
 
 
Cooper Industries, Ltd., Class A
 
 
40
 
 
 
1,234
 
Hubbell Incorporated, Class B
 
 
39
 
 
 
1,239
 
 
 
 
 

2,473
 
Food Retail - 1.90%    
 
 
Whole Foods Market, Inc.
 
 
127
 
 
 
2,413
 
 
 
 
 
 
Gas Utilities - 1.79%    
 
 
Equitable Resources, Inc.
 
 
65
 
 
 
2,281
 
 
 
 
 
 
Health Care Distributors - 2.30%    
 
 
Henry Schein, Inc. (A)
 
 
61
 
 
 
2,923
 
 
 
 
 
 
Health Care Equipment - 5.73%    
 
 
C. R. Bard, Inc.
 
 
16
 
 
 
1,180
 
Hologic, Inc. (A)
 
 
181
 
 
 
2,580
 
Hospira, Inc. (A)
 
 
76
 
 
 
2,909
 
Wright Medical Group, Inc. (A)
 
 
38
 
 
 
619
 
 
 
 
 

7,288
 
Health Care Supplies - 2.17%    
 
 
DENTSPLY International Inc.
 
 
90
 
 
 
2,761
 
 
 
 
 
 
Homefurnishing Retail - 0.95%    
 
 
Bed Bath & Beyond Inc. (A)
 
 
39
 
 
 
1,210
 
 
 
 
 
 
Hotels, Resorts & Cruise Lines - 1.26%    
 
 
Royal Caribbean Cruises Ltd.
 
 
95
 
 
 
1,284
 
Starwood Hotels & Resorts Worldwide, Inc.
 
 
14
 
 
 
314
 
 
 
 
 

1,598
 
Industrial Machinery - 2.89%    
 
 
Donaldson Company, Inc.
 
 
34
 
 
 
1,176
 
IDEX Corporation
 
 
102
 
 
 
2,497
 
 
 
 
 

3,673
 
Internet Software & Services - 1.27%    
 
 
DealerTrack Holdings, Inc. (A)
 
 
95
 
 
 
1,612
 
 
 
 
 
 
Investment Banking & Brokerage - 3.29%    
 
 
Lazard Group LLC
 
 
46
 
 
 
1,246
 
TD Ameritrade Holding Corporation (A)
 
 
168
 
 
 
2,940
 
 
 
 
 

4,186
 
Oil & Gas Equipment & Services - 3.40%    
 
 
Dresser-Rand Group Inc. (A)
 
 
49
 
 
 
1,291
 
National Oilwell Varco, Inc. (A)
 
 
53
 
 
 
1,742
 
Smith International, Inc.
 
 
50
 
 
 
1,286
 
 
 
 
 

4,319
 
Oil & Gas Exploration & Production - 2.80%    
 
 
Noble Energy, Inc.
 
 
60
 
 
 
3,565
 
 
 
 
 
 
Packaged Foods & Meats - 2.26%    
 
 
Hershey Foods Corporation
 
 
80
 
 
 
2,874
 
 
 
 
 
 
Paper Packaging - 2.75%    
 
 
Packaging Corporation of America
 
 
85
 
 
 
1,378
 
Sealed Air Corporation
 
 
42
 
 
 
767
 
Sonoco Products Company
 
 
57
 
 
 
1,353
 
 
 
 
 

3,498
 
Pharmaceuticals - 1.94%    
 
 
Allergan, Inc.
 
 
52
 
 
 
2,465
 
 
 
 
 
 
Publishing - 1.94%    
 
 
Meredith Corporation
 
 
97
 
 
 
2,472
 
 
 
 
 
 
Regional Banks - 3.15%    
 
 
BOK Financial Corporation
 
 
17
 
 
 
639
 
Prosperity Bancshares, Inc.
 
 
21
 
 
 
628
 
Signature Bank (A)
 
 
86
 
 
 
2,332
 
Zions Bancorporation
 
 
35
 
 
 
403
 
 
 
 
 

4,002
 
Reinsurance - 0.50%    
 
 
RenaissanceRe Holdings Ltd.
 
 
14
 
 
 
633
 
 
 
 
 
 
Research & Consulting Services - 1.04%    
 
 
Dun & Bradstreet Corporation (The)
 
 
16
 
 
 
1,320
 
 
 
 
 
 
Restaurants - 3.60%    
 
 
Chipotle Mexican Grill, Inc., Class A (A)
 
 
21
 
 
 
1,700
 
P.F. Chang's China Bistro, Inc. (A)
 
 
90
 
 
 
2,881
 
 
 
 
 

4,581
 
Semiconductors - 6.89%    
 
 
Broadcom Corporation, Class A (A)
 
 
104
 
 
 
2,567
 
Linear Technology Corporation
 
 
54
 
 
 
1,260
 
Microchip Technology Incorporated
 
 
162
 
 
 
3,641
 
NVIDIA Corporation (A)
 
 
115
 
 
 
1,298
 
 
 
 
 

8,766
 
Specialized Finance - 1.72%    
 
 
CME Group Inc.
 
 
7
 
 
 
2,193
 
 
 
 
 
 
Specialty Stores - 2.05%    
 
 
PetSmart, Inc.
 
 
122
 
 
 
2,607
 
 
 
 
 
 
Thrifts & Mortgage Finance - 0.49%    
 
 
People's United Financial, Inc.
 
 
41
 
 
 
622
 
 
 
 
 
 
Trading Companies & Distributors - 1.95%    
 
 
Fastenal Company
 
 
75
 
 
 
2,478
 
 
 
 
 


 
TOTAL COMMON STOCKS - 90.28%    
   
$
114,802
  
(Cost: $118,851)
 
 
 
 
 
 
 
CALL OPTIONS - 0.18%  
Number of
Contracts
   
 
Market Vectors Agribusiness ETF,
 
 
 
 
 
 
      Sep $37.00, Expires 9-21-09    
––
*
  
 
38
 
S&P Metals & Mining Select Index,
 
 
 
 
 
 
      Sep $100.00, Expires 9-21-09
 
 
2
 
 
 
185
 
(Cost: $347)
 
 
 
 
$
223
  
 
 
 
 
 
 
 
 
CORPORATE DEBT SECURITIES - 0.17%  
Principal
    
 
Health Care Equipment
 
 
 
 
 
 
Wright Medical Group, Inc., Convertible,
 
 
 
 
 
 
      2.625%, 12-1-14
 
$280
 
 
$
211
 
(Cost: $214)
 
 
 
 


 
 
 
 
 
 
 
 
                 
SHORT-TERM SECURITIES    
     
 
Commercial Paper - 7.31%    
 
 
Baxter International Inc.,
 
 
 
 
 
 
      0.280%, 7-8-09
4,000
 
 
 
4,000
 
Johnson & Johnson,
 
 
 
 
 
 
      0.100%, 7-13-09
1,000
 
 
 
1,000
 
Total Capital SA,
 
 
 
 
 
 
      0.080%, 7-1-09
4,289
 
 
 
4,289
 
 
 
 
 

9,289
 
Master Note - 2.44%    
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
 
      0.197%, 7-1-09 (B)
3,102
 
 
 
3,102
 
 
 
 
 


 
TOTAL SHORT-TERM SECURITIES - 9.75%    
   
$
12,391
  
(Cost: $12,391)
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 100.38%    
   
$
127,627
  
(Cost: $131,803)
 
 
 
 
 
 
 
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.38%)      
(480
)
 
NET ASSETS - 100.00%    
   
$
127,147
  
 
Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
 
Level 2
 
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
$
114,802
 
 
$
––
 
 
$
––
 
Call Options
 
––
 
 
 
––
 
 
 
223
 
Corporate Debt Securities
 
––
 
 
 
211
 
 
 
––
 
Short-Term Securities
 
––
 
 
 
12,391
 
 
 
––
 
 
 
114,802
 
 
 
12,602
 
 
 
223
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
(269
)
Total
$
114,802
 
 
$
12,602
 
 
$
(46
)
 
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
 
Call
Options
  
Other
Financial
Instruments+
 
 
 
 
 
 
 
 
Beginning Balance 4-1-09
$
270
 
 
$
(647
)
Net realized gain (loss)
 
783
 
 
 
599
 
Net unrealized appreciation (depreciation)
 
391
 
 
 
6
 
Net purchases (sales)
(1,221
)
 
 
(227
)
Transfers in and/or (out) of Level 3 during the period
 
––
 
 
 
––
 
Ending Balance 6-30-09
$
223
 
 
$
(269
)
Net change in unrealized appreciation (depreciation)
      for all Level 3 investments still held as of 6-30-09
$
(124
)
 
$
44
 
 
 
 
 
 
 
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
The following written options were outstanding at June 30, 2009:
 
Underlying
Security
Contracts
Subject
to Put
Expiration
Month
Exercise
Price
Premium
Received
Market
Value
Market Vectors Agribusiness ETF:
––*
September 2009
$32.00
$
39
$
(38)
S&P Metals & Mining Select Index:
2
September 2009
650.00
273
(231)
       
$
312
$
(269)
*Not shown due to rounding.
 
(A)No dividends were paid during the preceding 12 months.
 
(B)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 










SCHEDULE OF INVESTMENTS
Ivy Money Market Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)
   
CORPORATE OBLIGATIONS  
Principal
  
Value
Commercial Paper
 
 
 
 
   
Baxter International Inc.:
 
 
 
 
   
      0.280%, 7-8-09
 
$
7,500
 
 
$
7,499
      0.300%, 7-9-09
 
 
3,250
 
 
 
3,250
Corporacion Andina de Fomento:
 
 
 
 
   
      0.750%, 9-1-09
 
 
5,000
 
 
 
4,993
      0.750%, 9-3-09
 
 
2,500
 
 
 
2,497
      1.400%, 2-12-10
 
 
6,300
 
 
 
6,245
IBM International Group Capital LLC (International Business
      Machines Corporation):
 
 
 
 
   
      1.394%, 7-29-09 (A)
 
 
9,200
 
 
 
9,197
      0.881%, 8-26-09 (A)
 
 
1,500
 
 
 
1,500
Kitty Hawk Funding Corp.,
 
 
 
 
   
      0.260%, 7-27-09
 
 
1,500
 
 
 
1,500
Praxair Inc.,
 
 
 
 
   
      0.170%, 7-2-09
 
 
3,178
 
 
 
3,178
SBC Communications Inc. (AT&T Inc.),
 
 
 
 
   
      4.125%, 9-15-09
 
 
3,600
 
 
 
3,598
Straight-A Funding, LLC (Federal Financing Bank),
 
 
 
 
   
      0.330%, 8-17-09
 
 
1,000
 
 
 
999
Unilever Capital Corporation,
 
 
 
 
   
      0.321%, 7-10-09 (A)
 
 
350
 
 
 
350
Verizon Communications Inc.:
 
 
 
 
   
      0.340%, 7-8-09
 
 
6,800
 
 
 
6,800
      0.360%, 7-20-09
 
 
3,500
 
 
 
3,499
 
 
 
 


Total Commercial Paper - 19.34%    
     
55,105
Commercial Paper (backed by irrevocable bank letter of credit)
 
 
 
 
   
River Fuel Funding Company #3, Inc. (Bank of New York (The)),
 
 
 
 
   
      0.580%, 7-31-09
 
 
3,200
 
 
 
3,198
River Fuel Trust #1 (Bank of New York (The)):
 
 
 
 
   
      0.280%, 7-2-09
 
 
2,000
 
 
 
2,000
      0.280%, 7-15-09
 
 
3,000
 
 
 
3,000
 
 
 
 


Total Commercial Paper (backed by irrevocable bank letter
      of credit) - 2.87% 		   
     
8,198

Master Note - 2.40%
 
 
 
 
 
Toyota Motor Credit Corporation,
 
 
 
 
   
      0.197%, 7-1-09 (A)
 
 
6,826
 
 
 
6,826
 
 
 
 
Notes
 
 
 
 
   
3M Company,
 
 
 
 
   
      7.139%, 12-14-09 (B)
11,000
 
 
 
11,215
American Honda Finance Corp.:
 
 
 
 
   
      1.404%, 7-29-09 (A)(B)
 
 
5,000
 
 
 
4,918
      1.416%, 8-5-09 (A)
 
 
2,100
 
 
 
2,070
      1.306%, 8-10-09 (A)
 
 
1,000
 
 
 
993
      1.496%, 8-14-09 (A)
 
 
1,000
 
 
 
1,000
      0.835%, 8-20-09 (A)
 
 
700
 
 
 
694
      0.985%, 8-20-09 (A)
 
 
2,500
 
 
 
2,480
Bank of America Corporation (Federal Deposit Insurance Corporation),
 
 
 
 
   
      0.659%, 9-14-09 (A)(C)
16,250
 
 
 
16,250
Bank of America, N.A.,
 
 
 
 
   
      1.538%, 8-12-09 (A)
 
 
3,000
 
 
 
2,971
Bear Stearns Companies Inc. (The) (JPMorgan Chase & Co.),
 
 
 
 
   
      0.974%, 8-18-09 (A)
 
 
2,150
 
 
 
2,148
BellSouth Corporation (AT&T Inc.),
 
 
 
 
   
      4.950%, 4-26-10 (A)
 
 
7,400
 
 
 
7,546
BP Capital Markets p.l.c.,
 
 
 
 
   
      0.768%, 9-11-09 (A)
 
 
1,500
 
 
 
1,500
Caterpillar Financial Services Corporation:
 
 
 
 
   
      1.199%, 7-9-09 (A)
 
 
3,900
 
 
 
3,860
      1.202%, 7-27-09 (A)
 
 
2,235
 
 
 
2,236
Caterpillar Inc.,
 
 
 
 
   
      7.250%, 9-15-09
 
 
5,247
 
 
 
5,302
Citibank, N.A. (Federal Deposit Insurance Corporation),
 
 
 
 
   
      0.648%, 9-30-09 (A)(C)
 
 
7,800
 
 
 
7,800
Citigroup Funding Inc. (Federal Deposit Insurance Corporation),
 
 
 
 
   
      1.139%, 7-30-09 (A)(C)
 
 
3,500
 
 
 
3,500
Countrywide Home Loans, Inc. (Bank of America Corporation):
 
 
 
 
   
      5.625%, 7-15-09
 
 
2,500
 
 
 
2,503
      4.125%, 9-15-09
 
 
8,200
 
 
 
8,213
Electronic Data Systems Corporation (Hewlett-Packard Company),
 
 
 
 
   
      7.125%, 10-15-09
13,080
 
 
 
13,273
GTE California Incorporated (Verizon Communications Inc.),
 
 
 
 
   
      6.700%, 9-1-09
 
 
1,000
 
 
 
1,007
Honeywell International Inc.,
 
 
 
 
   
      1.142%, 7-27-09 (A)
 
 
1,525
 
 
 
1,524
International Business Machines Corporation:
 
 
 
 
   
      0.320%, 7-6-09 (A)
 
 
750
 
 
 
750
      0.348%, 7-8-09 (A)
 
 
1,000
 
 
 
1,000
John Deere Capital Corporation:
 
 
 
 
   
      1.412%, 7-16-09 (A)
 
 
1,500
 
 
 
1,484
      1.111%, 8-26-09 (A)
 
 
1,500
 
 
 
1,496
      0.708%, 9-1-09 (A)
 
 
8,086
 
 
 
8,052
      4.125%, 1-15-10
 
 
1,600
 
 
 
1,620
JPMorgan Chase & Co.:
 
 
 
 
   
      1.176%, 8-19-09 (A)
 
 
750
 
 
 
748
      0.843%, 8-21-09 (A)
 
 
1,000
 
 
 
998
      0.688%, 9-25-09 (A)
 
 
1,400
 
 
 
1,396
      7.625%, 12-7-09
 
 
6,500
 
 
 
6,629
PACCAR Financial Corp.,
 
 
 
 
   
      0.649%, 9-21-09 (A)
 
 
3,500
 
 
 
3,494
Praxair Inc.,
 
 
 
 
   
      0.751%, 8-26-09 (A)
 
 
2,000
 
 
 
2,000
Procter & Gamble Company (The),
 
 
 
 
   
      0.996%, 8-7-09 (A)
 
 
1,500
 
 
 
1,500
Procter & Gamble International Funding S.C.A. (Procter & Gamble
      Company (The)):
 
 
 
 
   
      1.176%, 7-6-09 (A)
 
 
1,000
 
 
 
1,000
      5.300%, 7-6-09 (B)
 
 
850
 
 
 
851
      1.224%, 8-8-09 (A)
 
 
750
 
 
 
750
      1.046%, 8-19-09 (A)
 
 
5,700
 
 
 
5,697
Roche Holdings, Inc.,
 
 
 
 
   
      1.661%, 8-25-09 (A)
10,200
 
 
 
10,208
Toyota Motor Credit Corporation:
 
 
 
 
   
      1.650%, 9-3-09 (A)
 
 
4,000
 
 
 
4,000
      1.663%, 9-18-09 (A)
 
 
3,000
 
 
 
3,000
Wal-Mart Stores, Inc.,
 
 
 
 
   
      6.875%, 8-10-09
 
 
4,241
 
 
 
4,260
Walt Disney Company (The),
 
 
 
 
   
      0.750%, 9-10-09 (A)
 
 
1,950
 
 
 
1,950
Wells Fargo & Company:
 
 
 
 
   
      0.782%, 9-23-09 (A)
 
 
2,700
 
 
 
2,690
      4.200%, 1-15-10
 
 
1,000
 
 
 
1,011
 
 
 
 


Total Notes - 59.53%    
     
169,587

Notes (backed by irrevocable bank letter of credit)
 
 
 
 
   
Conestoga Wood Specialties Corporation, Variable/Fixed Rate
      Taxable Demand Revenue Bonds, Series 2000
      (Wachovia Bank, N.A.),
 
 
 
 
   
      0.600%, 7-2-09 (A)
 
 
1,935
 
 
 
1,935
The Academy of the New Church, Taxable Variable Rate Demand
      Bonds, Series 2008 (Wachovia Bank, N.A.),
 
 
 
 
   
      0.450%, 7-2-09 (A)
 
 
3,000
 
 
 
3,000
Trap Rock Industries, Inc., Taxable Variable Demand Bonds,
      Series 2005 (Wachovia Bank, National Association),
 
 
 
 
   
      0.450%, 7-2-09 (A)
 
 
1,865
 
 
 
1,865
 
 
 
 


Total Notes (backed by irrevocable bank letter of credit) - 2.39%    
     
6,800
             
TOTAL CORPORATE OBLIGATIONS - 86.53%    
   
$
246,516
(Cost: $246,516)
 
 
 
 
 
             
MUNICIPAL OBLIGATIONS - TAXABLE    
     
California - 4.70%
 
 
 
 
 
California Pollution Control Financing Authority, Environmental
      Improvement Revenue Bonds (Atlantic Richfield Company
      Project), Series 1997, (BP p.l.c.),
 
 
 
 
   
      0.650%, 9-4-09
12,400
 
 
 
12,400
City of Los Angeles, Wastewater System Subordinate Revenue
      Bonds, Variable Rate Refunding, Series 2008-G
      (Bank of America, N.A.),
 
 
 
 
   
      0.190%, 7-1-09 (A)
 
 
1,000
 
 
 
1,000
 
 
 
 

13,400
Illinois - 0.18%
 
 
 
 
 
State of Illinois, General Obligation Certificates of May, 2009,
 
 
 
 
   
      4.000%, 4-26-10
 
 
500
 
 
 
510


Maryland - 0.74%
 
 
 
 
 
Maryland Health and Higher Educational Facilities Authority,
      Revenue Bonds, Anne Arundel Health Systems Issue,
      Series 2009A (Wachovia Bank, N.A.),
 
 
 
 
   
      0.450%, 7-1-09 (A)
 
 
2,100
 
 
 
2,100


Mississippi - 1.73%
 
 
 
 
 
Mississippi Business Finance Corporation, Adjustable Mode
      Industrial Development Revenue Bonds (Belk, Inc. Project),
      Series 2005 (Wachovia Bank, N.A.),
 
 
 
 
   
      0.450%, 7-2-09 (A)
 
 
4,925
 
 
 
4,925


Missouri - 0.35%
 
 
 
 
 
City of Kansas City, Missouri, Variable Rate Demand Taxable
      Special Obligation Refunding Bonds (President Hotel
      Redevelopment Project), Series 2009B (JPMorgan Chase & Co.),
 
 
 
 
   
      0.700%, 7-1-09 (A)
 
 
1,000
 
 
 
1,000
 
 
 
 


TOTAL MUNICIPAL OBLIGATIONS - TAXABLE - 7.70%    
$
21,935
(Cost: $21,935)
 
 
 
 
 
             
UNITED STATES GOVERNMENT AND
      GOVERNMENT AGENCY OBLIGATIONS 		   
     
United States Government Agency Obligations
 
 
 
 
 
Overseas Private Investment Corporation:
 
 
 
 
   
      0.250%, 8-17-09 (A)
 
 
1,465
 
 
 
1,465
      0.250%, 9-15-09 (A)
 
 
2,000
 
 
 
2,000
      0.250%, 9-15-09 (A)
 
 
2,000
 
 
 
2,000
      0.250%, 11-16-09 (A)
 
 
1,200
 
 
 
1,200
Totem Ocean Trailer Express, Inc. (United States Government
      Guaranteed Ship Financing Obligations),
 
 
 
 
   
      0.879%, 10-15-09 (A)
 
 
2,203
 
 
 
2,203
 
 
 
 


Total United States Government Agency Obligations - 3.11%
 
 
 
 
 
8,868

United States Government Obligations - 2.37%
 
 
 
 
 
United States Treasury Bills,
 
 
 
 
   
      1.330%, 7-2-09
 
 
6,750
 
 
 
6,750
         


TOTAL UNITED STATES GOVERNMENT AND
      GOVERNMENT AGENCY OBLIGATIONS - 5.48% 		   
   
$
15,618
(Cost: $15,618)
 
 
 
 
 
             
TOTAL INVESTMENT SECURITIES - 99.71%    
   
$
284,069
(Cost: $284,069)
 
 
 
 
 
             
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.29%      
817
             
NET ASSETS - 100.00%    
   
$
284,886
             

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
  
Level 2
  
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Corporate Obligations
$
––
 
 
$
246,516
 
 
$
––
 
Municipal Obligations
 
––
 
 
 
21,935
 
 
 
––
 
United States Government and Government
      Agency Obligations
 
––
 
 
 
15,618
   
 
––
 
 
 
––
 
 
 
284,069
 
 
 
––
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
$
––
 
 
$
284,069
    
$
––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
(A)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At June 30, 2009, the total value of these securities amounted to $16,984 or 5.96% of net assets.
 
(C)Security is fully guaranteed by the Federal Deposit Insurance Corporation for both interest and principal under the Debt Guarantee Program of the Temporary Liquidity Guarantee Program.
 









SCHEDULE OF INVESTMENTS
Ivy Municipal Bond Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)
   
MUNICIPAL BONDS  
Principal
  
Value
  
Alabama - 2.14%
 
 
 
 
 
 
The Water Works Board of the City of Birmingham (Alabama),
      Water Revenue Bonds, Series 2009-A,
 
 
 
 
 
 
      5.125%, 1-1-34
 
$750
 
 
$
750
 
The Public Education Building Authority of the City of
      Tuscaloosa, Student Housing Revenue Bonds (Ridgecrest
      Student Housing, LLC University of Alabama Ridgecrest
      Residential Project), Series 2008,
 
 
 
 
 
 
      6.750%, 7-1-33
 
 
500
 
 
 
550
 
 
 
 
 

1,300
 
Arizona - 2.27%
 
 
 
 
 
 
Arizona Health Facilities Authority, Hospital Revenue Bonds
      (Phoenix Children's Hospital), Series 2007C,
 
 
 
 
 
 
      1.600%, 2-1-42 (A)
 
 
125
 
 
 
107
 
City of Bullhead City, Arizona, Bullhead Parkway Improvement
      District, Improvement Bonds,
 
 
 
 
 
 
      6.100%, 1-1-13
 
 
220
 
 
 
221
 
Rio Nuevo Multipurpose Facilities District (City of Tucson,
      Arizona) Subordinate Lien Excise Tax Revenue Bonds,
      Series 2008,
 
 
 
 
 
 
      6.625%, 7-15-25
 
 
500
 
 
 
551
 
University Medical Center Corporation (Tucson, Arizona),
      Hospital Revenue Bonds, Series 2009,
 
 
 
 
 
 
      6.500%, 7-1-39
 
 
500
 
 
 
500
 
 
 
 
 

1,379
 
California - 9.32%
 
 
 
 
 
 
California Health Facilities Financing Authority, Revenue Bonds
      (Adventist Health System/West), Series 2009A,
 
 
 
 
 
 
      5.750%, 9-1-39
 
 
500
 
 
 
462
 
California Pollution Control Financing Authority, Solid Waste
      Disposal Revenue Bonds (Republic Services, Inc. Project)
      Series 2002B,
 
 
 
 
 
 
      5.250%, 6-1-23
 
 
415
 
 
 
391
 
State of California, Various Purpose General Obligation Bonds:
 
 
 
 
 
 
      5.000%, 2-1-22
 
 
495
 
 
 
466
 
      6.500%, 4-1-33
 
 
1,000
 
 
 
1,043
 
Trustees of the California State University Systemwide Revenue
      Bonds, Series 2002A,
 
 
 
 
 
 
      5.500%, 11-1-15
 
 
250
 
 
 
272
 
California Statewide Communities Development Authority,
      Insured Revenue Bonds (Henry Mayo Newhall Memorial
      Hospital), Series 2007A,
 
 
 
 
 
 
      5.000%, 10-1-37
 
 
500
 
 
 
422
 
Golden State Tobacco Securitization Corporation, Tobacco
      Settlement Asset-Backed Bonds, Series 2003A-1,
 
 
 
 
 
 
      6.750%, 6-1-39
 
 
200
 
 
 
233
 
Golden State Tobacco Securitization Corporation, Enhanced
      Tobacco Settlement Asset-Backed Bonds, Series 2003B,
 
 
 
 
 
 
      5.000%, 6-1-43
 
 
1,000
 
 
 
1,100
 
Los Angeles Unified School District (County of Los Angeles,
      California), General Obligation Bonds, Election of 2005,
      Series F (2009),
 
 
 
 
 
 
      5.000%, 1-1-34
 
 
500
 
 
 
467
 
Riverside Community College District, Riverside County,
      California, Election of 2004, General Obligation Bonds,
      Series 2004A,
 
 
 
 
 
 
      5.500%, 8-1-29
 
 
200
 
 
 
233
 
Southern California Public Power Authority, Transmission
      Project Revenue Bonds, 2008 Subordinate Series B
      (Southern Transmission Project),
 
 
 
 
 
 
      6.000%, 7-1-27
 
 
500
 
 
 
531
 
Upland Unified School District (San Bernardino County,
      California), Election of 2008 General Obligation Bonds,
      Series A,
 
 
 
 
 
 
      0.000%, 8-1-31 (B)
 
 
150
 
 
 
41
 
 
 
 
 

5,661
 
Colorado - 3.29%
 
 
 
 
 
 
Joint School District No. 28J, Adams and Arapahoe Counties,
      Colorado, General Obligation Bonds, Series 2008,
 
 
 
 
 
 
      6.000%, 12-1-28
 
 
500
 
 
 
546
 
Certificates of Participation, Series 2008, Adams 12 Five Star
      Schools, Adams County and City and County of Broomfield,
      Colorado,
 
 
 
 
 
 
      5.000%, 12-1-25
 
 
500
 
 
 
516
 
Colorado Housing and Finance Authority, Single Family
      Mortgage Class I Bonds, 2009 Series A,
 
 
 
 
 
 
      5.500%, 11-1-29
 
 
500
 
 
 
508
 
Lincoln Park Metropolitan District, Douglas County, Colorado,
      General Obligation Refunding and Improvement Bonds,
      Series 2008,
 
 
 
 
 
 
      6.125%, 12-1-30
 
 
500
 
 
 
427
 
 
 
 
 

1,997
 
Connecticut - 0.64%
 
 
 
 
 
 
Capital City Economic Development Authority, Parking and
      Energy Fee Revenue Bonds, 2008 Series D,
 
 
 
 
 
 
      5.000%, 6-15-22
 
 
370
 
 
 
389
 
 
 
 
 
 
District Of Columbia - 2.60%
 
 
 
 
 
 
District of Columbia, Hospital Revenue Bonds (Sibley Memorial
      Hospital Issue), Series 2009,
 
 
 
 
 
 
      6.375%, 10-1-39 (C)
 
 
500
 
 
 
491
 
District of Columbia (Washington, D.C.), General Obligation
      Refunding Bonds, Series 2008F,
 
 
 
 
 
 
      5.000%, 6-1-19
 
 
1,000
 
 
 
1,092
 
 
 
 
 

1,583
 
Florida - 6.08%
 
 
 
 
 
 
Brevard County Health Facilities Authority, Health Facilities
      Revenue Bonds, Series 2009B (Health First, Inc. Project),
 
 
 
 
 
 
      7.000%, 4-1-39
 
 
500
 
 
 
507
 
Hillsborough County Industrial Development Authority,
      Industrial Development Revenue Bonds, Health Facilities
      Projects, Series 2008 A (University Community Hospital),
 
 
 
 
 
 
      5.625%, 8-15-29
 
 
390
 
 
 
294
 
City of Jacksonville, Florida, Better Jacksonville Sales Tax
      Revenue Bonds, Series 2003,
 
 
 
 
 
 
      5.250%, 10-1-19
 
 
250
 
 
 
256
 
Miami-Dade County, Florida, General Obligation Bonds (Building
      Better Communities Program), Series 2008B,
 
 
 
 
 
 
      6.250%, 7-1-26
 
 
500
 
 
 
549
 
Miami-Dade County, Florida, Miami International Airport (Hub
      of the Americas), Aviation Revenue Bonds, Series 2009A,
 
 
 
 
 
 
      5.500%, 10-1-36
 
 
500
 
 
 
478
 
Miami-Dade County, Florida, Water and Sewer System Revenue
      Refunding Bonds, Series 2008B,
 
 
 
 
 
 
      5.250%, 10-1-22
 
 
500
 
 
 
523
 
Miami-Dade County, Florida, Water and Sewer System Revenue
      Refunding Bonds, Series 2008C,
 
 
 
 
 
 
      5.000%, 10-1-17
 
 
500
 
 
 
554
 
City of Port St. Lucie, Florida, Special Assessment Refunding
      Bonds, Series 2008A (City Center Special Assessment District),
 
 
 
 
 
 
      5.750%, 7-1-20
 
 
500
 
 
 
534
 
 
 
 
 

3,695
 
Georgia - 1.70%
 
 
 
 
 
 
The Atlanta Development Authority Educational Facilities,
      Revenue Bonds (Panther Place, LLC Project, Located on
      the Campus of Georgia State University), Series 2009A,
 
 
 
 
 
 
      5.000%, 7-1-37
 
 
500
 
 
 
486
 
Municipal Electric Authority of Georgia, Project One Subordinated
      Bonds, Series 2008D,
 
 
 
 
 
 
      5.750%, 1-1-20
 
 
500
 
 
 
546
 
 
 
 
 

1,032
 
Illinois - 2.87%
 
 
 
 
 
 
City of Belleville, Illinois, Tax Increment Refunding Revenue
      Bonds (Frank Scott Parkway Redevelopment Project),
      Series 2007A:
 
 
 
 
 
 
      5.000%, 5-1-26
 
 
240
 
 
 
175
 
      5.700%, 5-1-36
 
 
250
 
 
 
181
 
City of Chicago, General Obligation Bonds, Project and
      Refunding, Series 2004A,
 
 
 
 
 
 
      5.250%, 1-1-21
 
 
250
 
 
 
266
 
Illinois Finance Authority, Revenue Bonds, The University
      of Chicago, Series 2008B,
 
 
 
 
 
 
      5.500%, 7-1-19
 
 
500
 
 
 
565
 
Bloomington-Normal Airport Authority of McLean County,
      Illinois, Central Illinois Regional Airport, Passenger Facility
      Charge Revenue Bonds, Series 2001,
 
 
 
 
 
 
      6.050%, 12-15-19
 
 
645
 
 
 
557
 
 
 
 
 

1,744
 
Indiana - 5.92%
 
 
 
 
 
 
Ball State University Board of Trustees, Ball State University
      Student Fee Bonds, Series K,
 
 
 
 
 
 
      5.750%, 7-1-18
 
 
500
 
 
 
556
 
Dyer (Indiana) Redevelopment Authority, Economic Development
      Lease Rental Bonds, Series 1999,
 
 
 
 
 
 
      6.500%, 1-15-24
 
 
300
 
 
 
303
 
East Chicago Elementary School Building Corporation (Lake
      County, Indiana), First Mortgage Bonds, Series 1993A,
 
 
 
 
 
 
      5.500%, 1-15-16
 
 
255
 
 
 
255
 
City of Hammond (Indiana), Redevelopment District Revenue
      Bonds, Series 2008 (Marina Area Project),
 
 
 
 
 
 
      6.000%, 1-15-17
 
 
500
 
 
 
457
 
Indiana Health and Educational Facility Financing Authority,
      Hospital Revenue Bonds, Series 2007 (Community Foundation
      of Northwest Indiana Obligated Group),
 
 
 
 
 
 
      5.500%, 3-1-37
 
 
250
 
 
 
211
 
Indiana Finance Authority, Facilities Revenue Refunding Bonds,
      Series 2008C (Miami Correctional Facility-Phase II),
 
 
 
 
 
 
      5.000%, 7-1-17
 
 
500
 
 
 
547
 
Mt. Vernon School Building Corporation of Hancock County,
      Hancock County, Indiana, First Mortgage Bonds, Series 2007,
 
 
 
 
 
 
      5.250%, 1-15-32
 
 
500
 
 
 
505
 
New Albany-Floyd County School Building Corporation, First
      Mortgage Bonds, Series 2002 (Floyd County, Indiana),
 
 
 
 
 
 
      5.750%, 7-15-17
 
 
675
 
 
 
766
 
 
 
 
 

3,600
 
Iowa - 1.59%
 
 
 
 
 
 
City of Altoona, Iowa, Annual Appropriation Urban Renewal
      Tax Increment Revenue Bonds, Series 2008,
 
 
 
 
 
 
      6.000%, 6-1-34
 
 
1,000
 
 
 
969
 
 
 
 
 
 
Kansas - 0.44%
 
 
 
 
 
 
Sedgwick County, Kansas and Shawnee County, Kansas,
      Single Family Mortgage Revenue Bonds (Mortgage-Backed
      Securities Program), 2001 Series A-1,
 
 
 
 
 
 
      6.300%, 12-1-32
 
 
110
 
 
 
113
 
Sedgwick County, Kansas and Shawnee County, Kansas,
      Single Family Mortgage Revenue Bonds (Mortgage-Backed
      Securities Program), 2003 Series A-2,
 
 
 
 
 
 
      5.650%, 6-1-35
 
 
155
 
 
 
155
 
 
 
 
 

268
 
Kentucky - 2.32%
 
 
 
 
 
 
Commonwealth of Kentucky, State Property and Buildings
      Commission, Revenue and Revenue Refunding Bonds,
      Project No. 90,
 
 
 
 
 
 
      5.750%, 11-1-19
 
 
500
 
 
 
567
 
The Turnpike Authority of Kentucky, Economic Development
      Road Revenue Bonds (Revitalization Projects), 2008 Series A,
 
 
 
 
 
 
      5.000%, 7-1-16
 
 
330
 
 
 
370
 
Louisville Regional Airport Authority, Airport System Revenue
      Bonds, 2008 Series A,
 
 
 
 
 
 
      5.250%, 7-1-28
 
 
500
 
 
 
473
 
 
 
 
 

1,410
 
Louisiana - 0.85%
 
 
 
 
 
 
New Orleans Aviation Board, Revenue Refunding Bonds
      (Restructuring GARBs), Series 2009 A-1,
 
 
 
 
 
 
      6.000%, 1-1-23
 
 
500
 
 
 
516
 
 
 
 
 
 
Maryland - 1.58%
 
 
 
 
 
 
Maryland Economic Development Corporation, Pollution
      Control Revenue Refunding Bonds (Potomac Electric
      Project), 2006 Series,
 
 
 
 
 
 
      6.200%, 9-1-22
 
 
500
 
 
 
543
 
Maryland Transportation Authority, Airport Parking Revenue
      Bonds, Series 2002B, Baltimore/Washington International
      Airport Projects (Qualified Airport Bonds),
 
 
 
 
 
 
      5.375%, 3-1-15
 
 
405
 
 
 
415
 
 
 
 
 

958
 
Massachusetts - 1.59%
 
 
 
 
 
 
Massachusetts Educational Financing Authority, Education
      Loan Revenue Bonds, Issue H, Series 2008,
 
 
 
 
 
 
      6.125%, 1-1-22
 
 
395
 
 
 
401
 
Massachusetts Educational Financing Authority, Education
      Loan Revenue Bonds, Issue I, Series 2009,
 
 
 
 
 
 
      6.000%, 1-1-28
 
 
415
 
 
 
417
 
Massachusetts Development Finance Agency, Revenue Bonds
      (Linden Ponds, Inc. Facility), Series 2007 A,
 
 
 
 
 
 
      5.750%, 11-15-42
 
 
250
 
 
 
146
 
 
 
 
 

964
 
Michigan - 2.32%
 
 
 
 
 
 
City of Detroit, Michigan, General Obligation Bonds (Unlimited
      Tax), Series 2004-A(1),
 
 
 
 
 
 
      5.250%, 4-1-23
 
 
200
 
 
 
166
 
Garden City Hospital Finance Authority, Hospital Revenue and
      Refunding Bonds (Garden City Hospital Obligated Group),
      Series 1998A,
 
 
 
 
 
 
      5.625%, 9-1-10
 
 
5
 
 
 
5
 
City of Kalamazoo, Hospital Finance Authority, Hospital Revenue
      Refunding Bonds, (Bronson Methodist Hospital), Series 2003A,
 
 
 
 
 
 
      5.000%, 5-15-26
 
 
500
 
 
 
474
 
State Building Authority, State of Michigan, 2008 Revenue and
      Revenue Refunding Bonds, Series I (Facilities Program),
 
 
 
 
 
 
      5.000%, 10-15-18
 
 
305
 
 
 
314
 
State Building Authority, State of Michigan, 2006 Revenue
      Refunding Bonds, Series IA (Facilities Program),
 
 
 
 
 
 
      0.000%, 10-15-22 (B)
 
 
1,000
 
 
 
451
 
 
 
 
 

1,410
 
Minnesota - 1.36%
 
 
 
 
 
 
City of Perham, Minnesota, General Obligation Disposal System
      Revenue Bonds, Series 2001,
 
 
 
 
 
 
      6.000%, 5-1-22
 
 
500
 
 
 
480
 
City of Victoria, Minnesota, Private School Facility Revenue
      Bonds (Holy Family Catholic High School Project),
      Series 1999A,
 
 
 
 
 
 
      5.600%, 9-1-19
 
 
400
 
 
 
349
 
 
 
 
 

829
 
Mississippi - 1.27%
 
 
 
 
 
 
The University of Southern Mississippi, S.M. Educational Building
      Corporation, Revenue Bonds, Series 2009 (Campus Facilities
      Improvements Project),
 
 
 
 
 
 
      5.375%, 9-1-36
 
 
750
 
 
 
774
 
 
 
 
 
 
Missouri - 6.07%
 
 
 
 
 
 
City of Belton, Missouri, Tax Increment Revenue Bonds (Belton
      Town Centre Project), Series 2004,
 
 
 
 
 
 
      6.250%, 3-1-24
 
 
200
 
 
 
154
 
Broadway-Fairview Transportation Development District
      (Columbia, Missouri), Transportation Sales Tax Revenue
      Bonds, Series 2006A,
 
 
 
 
 
 
      6.125%, 12-1-36
 
 
175
 
 
 
106
 
Grindstone Plaza Transportation Development District
      (Columbia, Missouri), Transportation Sales Tax Revenue
      Bonds, Series 2006A,
 
 
 
 
 
 
      5.550%, 10-1-36
 
 
250
 
 
 
143
 
The Industrial Development Authority of the City of Kansas City,
      Missouri, Revenue Bonds, Series 2004 (Plaza Library Project),
 
 
 
 
 
 
      5.900%, 3-1-24
 
 
200
 
 
 
171
 
City of Kearney, Missouri, General Obligation Bonds, Series 2001,
 
 
 
 
 
 
      5.500%, 3-1-16
 
 
350
 
 
 
372
 
Public Water Supply District No. 1 of Lincoln County, Missouri,
      Certificates of Participation, Series 2009,
 
 
 
 
 
 
      6.750%, 6-15-35
 
 
500
 
 
 
488
 
Health and Educational Facilities Authority of the State of
      Missouri, Health Facilities Revenue Bonds (SSM Health
      Care), Series 2008A,
 
 
 
 
 
 
      5.000%, 6-1-36
 
 
500
 
 
 
484
 
Missouri Development Finance Board, Infrastructure Facilities
      Revenue Bonds (City of Branson, Missouri) (Branson
      Landing Project), Series 2004A,
 
 
 
 
 
 
      5.250%, 12-1-19
 
 
65
 
 
 
62
 
Missouri Development Finance Board, Infrastructure Facilities
      Revenue Bonds (City of Independence, Missouri - Events
      Center Project), Series 2009A,
 
 
 
 
 
 
      6.625%, 4-1-33
 
 
500
 
 
 
512
 
Missouri Housing Development Commission, Single Family
      Mortgage Revenue Bonds (Homeownership Loan Program),
      2005 Series D,
 
 
 
 
 
 
      6.000%, 3-1-36
 
 
145
 
 
 
148
 
The Industrial Development Authority of the County of Platte
      County, Missouri, Transportation Revenue Bonds (Zona Rosa
      Phase II Retail Project), Series 2007,
 
 
 
 
 
 
      6.850%, 4-1-29
 
 
250
 
 
 
199
 
Platte County R-III School District Building Corporation,
      Leasehold Refunding and Improvement Revenue Bonds,
      Series 2008 (Platte County R-III School District of Platte
      County, Missouri Project),
 
 
 
 
 
 
      5.000%, 3-1-28
 
 
340
 
 
 
346
 
The Industrial Development Authority of St. Joseph, Missouri,
      Special Obligation Revenue Bonds (City of St. Joseph,
      Missouri - Sewerage System Improvements Project),
      Series 2007,
 
 
 
 
 
 
      4.375%, 4-1-18
 
 
100
 
 
 
100
 
The Industrial Development Authority of the County of St. Louis,
      Missouri, Senior Living Facilities Revenue Bonds (Friendship
      Village of West County), Series 2007A,
 
 
 
 
 
 
      5.500%, 9-1-28
 
 
500
 
 
 
402
 
 
 
 
 

3,687
 
Nebraska - 2.13%
 
 
 
 
 
 
Nebraska Higher Education Loan Program, Inc., Senior
      Subordinate Bonds, 1993-2, Series A-5A,
 
 
 
 
 
 
      6.200%, 6-1-13
 
 
200
 
 
 
201
 
Nebraska Public Power District, General Revenue Bonds,
      2008 Series B,
 
 
 
 
 
 
      5.000%, 1-1-15
 
 
1,000
 
 
 
1,093
 
 
 
 
 

1,294
 
Nevada - 1.36%
 
 
 
 
 
 
City of Las Vegas Redevelopment Agency, Nevada, Tax
      Increment Revenue Bonds, Series 2009A,
 
 
 
 
 
 
      8.000%, 6-15-30
 
 
500
 
 
 
519
 
Overton Power District No. 5 (Nevada), Special Obligation
      Revenue Bonds, (Series 2008),
 
 
 
 
 
 
      6.500%, 12-1-18
 
 
290
 
 
 
306
 
 
 
 
 

825
 
New Hampshire - 0.82%
 
 
 
 
 
 
New Hampshire Housing Finance Authority, Single Family
      Mortgage Acquisition Revenue Bonds, 2008 Series,
 
 
 
 
 
 
      6.000%, 7-1-38
 
 
500
 
 
 
501
 
 
 
 
 
 
New Jersey - 2.11%
 
 
 
 
 
 
New Jersey Health Care Facilities Financing Authority, Revenue
      Bonds, Virtua Health Issue, Series 2009A,
 
 
 
 
 
 
      5.500%, 7-1-38
 
 
500
 
 
 
493
 
New Jersey Economic Development Authority, School Facilities
      Construction Bonds, 2005 Series O,
 
 
 
 
 
 
      5.125%, 3-1-30
 
 
250
 
 
 
251
 
New Jersey Transportation Trust Fund Authority, Transportation
      System Bonds, 2003 Series B-2,
 
 
 
 
 
 
      5.000%, 12-15-16
 
 
500
 
 
 
537
 
 
 
 
 

1,281
 
New Mexico - 1.00%
 
 
 
 
 
 
New Mexico Mortgage Finance Authority, Single Family
      Mortgage Program Class I Bonds, 2006 Series D,
 
 
 
 
 
 
      6.000%, 1-1-37
 
 
90
 
 
 
91
 
New Mexico Mortgage Finance Authority, Single Family
      Mortgage Program Class I Bonds, 2008 Series D-2,
 
 
 
 
 
 
      5.250%, 7-1-30
 
 
500
 
 
 
516
 
 
 
 
 

607
 
New York - 3.09%
 
 
 
 
 
 
New York City Industrial Development Agency, Pilot Revenue
      Bonds, Series 2009A (Yankee Stadium Project):
 
 
 
 
 
 
      0.000%, 3-1-25 (B)
 
 
500
 
 
 
205
 
      0.000%, 3-1-26 (B)
 
 
500
 
 
 
189
 
      0.000%, 3-1-27 (B)
 
 
500
 
 
 
175
 
The Port Authority of New York and New Jersey, Consolidated
      Bonds, One Hundred Twenty-Seventh Series,
 
 
 
 
 
 
      5.500%, 12-15-14
 
 
500
 
 
 
527
 
The Port Authority of New York and New Jersey, Consolidated
      Bonds, One Hundred Fifty-Second Series,
 
 
 
 
 
 
      5.750%, 11-1-30
 
 
500
 
 
 
510
 
Suffolk County Industrial Development Agency (New York),
      Civic Facility Revenue Bonds, Series 1999A (The
      Southampton Hospital Association Civic Facility),
 
 
 
 
 
 
      7.250%, 1-1-20
 
 
110
 
 
 
106
 
Suffolk County Industrial Development Agency (New York),
      Civic Facility Revenue Bonds, Series 1999B (The
      Southampton Hospital Association Civic Facility),
 
 
 
 
 
 
      7.625%, 1-1-30
 
 
180
 
 
 
165
 
 
 
 
 

1,877
 
North Carolina - 2.13%
 
 
 
 
 
 
North Carolina Eastern Municipal Power Agency, Power System
      Revenue Bonds, Series 2008C,
 
 
 
 
 
 
      6.000%, 1-1-19
 
 
250
 
 
 
264
 
North Carolina Medical Care Commission, Health Care Facilities
      Revenue Refunding Bonds (University Health Systems of
      Eastern Carolina), Series 2008E-2 Bonds,
 
 
 
 
 
 
      6.000%, 12-1-36
 
 
500
 
 
 
518
 
Town of Oak Island, North Carolina, Enterprise System Revenue
      Bonds, Series 2009,
 
 
 
 
 
 
      6.000%, 6-1-34
 
 
500
 
 
 
513
 
 
 
 
 

1,295
 
Ohio - 2.94%
 
 
 
 
 
 
Buckeye Tobacco Settlement Financing Authority, Tobacco
      Settlement Asset-Backed Bonds, Series 2007A-2,
 
 
 
 
 
 
      6.000%, 6-1-42
 
 
500
 
 
 
297
 
Hamilton County, Ohio, Sewer System Improvement Revenue
      Bonds, 2005 Series B (The Metropolitan Sewer District of
      Greater Cincinnati),
 
 
 
 
 
 
      5.000%, 12-1-30
 
 
150
 
 
 
153
 
Ohio Air Quality Development Authority, State of Ohio,
      Air Quality Revenue Bonds (Ohio Power Company Project),
      Series 2008A,
 
 
 
 
 
 
      7.125%, 6-1-41
 
 
500
 
 
 
510
 
State of Ohio, Major New State Infrastructure Project Revenue
      Bonds, Series 2008-I,
 
 
 
 
 
 
      6.000%, 6-15-17
 
 
395
 
 
 
466
 
Toledo-Lucas County Port Authority, Development Revenue
      Bonds (Northwest Ohio Bond Fund), Series 2007C (Midwest
      Terminals Project),
 
 
 
 
 
 
      6.000%, 11-15-27
 
 
490
 
 
 
359
 
 
 
 
 

1,785
 
Oklahoma - 4.05%
 
 
 
 
 
 
Cleveland County Justice Authority, Sales Tax Revenue Bonds
      (Cleveland County Detention Facility Project) Series 2009B,
 
 
 
 
 
 
      5.750%, 3-1-29
 
 
500
 
 
 
505
 
Grand River Dam Authority, Revenue Bonds, Series 2008A,
 
 
 
 
 
 
      5.000%, 6-1-18
 
 
905
 
 
 
1,015
 
The Oklahoma Development Finance Authority, Solid Waste
      Disposal Revenue Bonds (Waste Management of Oklahoma,
      Inc. Project), Series 2004A,
 
 
 
 
 
 
      7.000%, 12-1-21
 
 
600
 
 
 
613
 
Tulsa Public Facilities Authority (Oklahoma), Assembly Center
      Lease Payment Revenue Bonds, Refunding Series 1985,
 
 
 
 
 
 
      6.600%, 7-1-14
 
 
295
 
 
 
328
 
 
 
 
 

2,461
 
Oregon - 0.40%
 
 
 
 
 
 
Hospital Facility Authority of Clackamas County, Oregon,
      Revenue Bonds (Legacy Health System), Series 2009A,
 
 
 
 
 
 
      5.500%, 7-15-35
 
 
250
 
 
 
246
 
 
 
 
 
 
Pennsylvania - 1.65%
 
 
 
 
 
 
City of Philadelphia, Pennsylvania, General Obligation
      Refunding Bonds, Series 2008A,
 
 
 
 
 
 
      5.250%, 12-15-24
 
 
445
 
 
 
451
 
The School District of Philadelphia, Pennsylvania, General
      Obligation Bonds, Series A of 2002, Prerefunded 2-1-12,
 
 
 
 
 
 
      5.500%, 2-1-18
 
 
500
 
 
 
553
 
 
 
 
 

1,004
 
Rhode Island - 1.09%
 
 
 
 
 
 
Rhode Island Health and Educational Building Corporation,
      Hospital Financing Revenue Bonds, St. Joseph Health
      Services of Rhode Island Issue, Series 1999,
 
 
 
 
 
 
      5.400%, 10-1-09
 
 
160
 
 
 
160
 
Rhode Island Student Loan Authority, Student Loan Program
      Revenue Bonds, 2009 Senior Series A,
 
 
 
 
 
 
      6.250%, 12-1-27 (C)
 
 
500
 
 
 
501
 
 
 
 
 

661
 
South Carolina - 0.59%
 
 
 
 
 
 
Tobacco Settlement Revenue Management Authority,
      5% Tobacco Settlement Asset-Backed Refunding Bonds,
      Series 2008,
 
 
 
 
 
 
      5.000%, 6-1-18
 
 
360
 
 
 
360
 
 
 
 
 
 
Tennessee - 0.83%
 
 
 
 
 
 
The Health, Educational and Housing Facility Board of the
      County of Shelby, Tennessee, Revenue Bonds, Series 2008C,
      (Methodist Le Bonheur Healthcare),
 
 
 
 
 
 
      5.250%, 6-1-18
 
 
500
 
 
 
504
 
 
 
 
 
 
Texas - 11.29%
 
 
 
 
 
 
City of Arlington, Texas, Special Tax Revenue Bonds,
      Series 2008,
 
 
 
 
 
 
      5.000%, 8-15-18
 
 
300
 
 
 
335
 
Cass County Industrial Development Corporation (Texas),
      Environmental Improvement, Revenue Refunding Bonds,
      2009 Series A,
 
 
 
 
 
 
      9.250%, 3-1-24
 
 
500
 
 
 
588
 
City of El Paso, Texas (El Paso County), Water and Sewer
      Revenue Refunding Bonds, Series 2008C,
 
 
 
 
 
 
      5.000%, 3-1-17
 
 
500
 
 
 
554
 
Harris County Cultural Education Facilities Finance Corporation,
      Medical Facilities Revenue Refunding Bonds (Baylor College
      of Medicine), Series 2008D,
 
 
 
 
 
 
      5.000%, 11-15-16
 
 
200
 
 
 
210
 
Hopkins County Hospital District (A political subdivision of the
      State of Texas located in Hopkins County), Hospital Revenue
      Bonds, Series 2008,
 
 
 
 
 
 
      6.000%, 2-15-33
 
 
500
 
 
 
408
 
Howard County, Texas, General Obligation Bonds, Series 2008,
 
 
 
 
 
 
      4.650%, 2-15-24
 
 
505
 
 
 
471
 
Lower Colorado River Authority, Refunding Revenue Bonds,
      Series 2008A,
 
 
 
 
 
 
      5.750%, 5-15-23
 
 
500
 
 
 
534
 
North Central Texas Health Facilities Development Corporation,
      Retirement Facility Revenue Bonds (Northwest Senior
      Housing Corporation - Edgemere Project), Series 1999A,
 
 
 
 
 
 
      7.250%, 11-15-19
 
 
235
 
 
 
245
 
North Texas Tollway Authority, System Revenue Refunding
      Bonds, Series 2008, First Tier Current Interest Bonds,
      Series 2008A,
 
 
 
 
 
 
      6.000%, 1-1-25
 
 
500
 
 
 
529
 
North Texas Tollway Authority, System Revenue Refunding
      Bonds, Series 2008D,
 
 
 
 
 
 
      0.000%, 1-1-30 (B)
 
 
1,000
 
 
 
282
 
Pflugerville Independent School District (Travis County, Texas),
      Unlimited Tax School Building Bonds, Series 2001,
 
 
 
 
 
 
      5.500%, 8-15-19
 
 
250
 
 
 
274
 
Town of Prosper, Texas (Collin County), Combination Tax and
      Revenue Certificates of Obligation, Series 2008,
 
 
 
 
 
 
      5.500%, 2-15-20
 
 
500
 
 
 
539
 
Prosper Independent School District (Collin and Denton Counties,
      Texas), Unlimited Tax School Building and Refunding Bonds,
      Series 2008,
 
 
 
 
 
 
      5.000%, 2-15-18
 
 
500
 
 
 
555
 
Tarrant County Cultural Education Facilities Finance Corporation,
      Retirement Facility Revenue Bonds (Northwest Senior
      Housing Corporation - Edgemere Project), Series 2006A,
 
 
 
 
 
 
      6.000%, 11-15-36
 
 
500
 
 
 
400
 
Tarrant County Cultural Education Facilities Finance Corporation,
      Retirement Facility Revenue Bonds (Buckingham Senior
      Living Community, Inc. Project), Series 2007,
 
 
 
 
 
 
      5.625%, 11-15-27
 
 
250
 
 
 
200
 
Board of Regents, Texas State University System, Revenue
      Financing System Revenue Bonds, Series 2008,
 
 
 
 
 
 
      5.250%, 3-15-19
 
 
355
 
 
 
392
 
Trinity River Authority of Texas (Tarrant County Water Project),
      Improvement Revenue Bonds, Series 2008,
 
 
 
 
 
 
      5.750%, 2-1-26
 
 
325
 
 
 
346
 
 
 
 
 

6,862
 
Vermont - 0.29%
 
 
 
 
 
 
Vermont Housing Finance Agency, Single Family Housing
      Bonds, Series 27,
 
 
 
 
 
 
      5.500%, 11-1-37
 
 
180
 
 
 
178
 
 
 
 
 
 
Virginia - 2.45%
 
 
 
 
 
 
Tobacco Settlement Financing Corporation, Tobacco Settlement
      Asset-Backed Bonds, Series 2007B-1 Senior Current Interest
      Bonds,
 
 
 
 
 
 
      5.000%, 6-1-47
 
 
250
 
 
 
138
 
Virginia Housing Development Authority, Commonwealth
      Mortgage Bonds, 2008 Series E,
 
 
 
 
 
 
      5.500%, 7-1-20
 
 
500
 
 
 
529
 
Virginia Public Building Authority, Public Facilities Revenue
      Bonds, Series 2008B,
 
 
 
 
 
 
      5.250%, 8-1-22
 
 
250
 
 
 
278
 
Industrial Development Authority of Washington County,
      Virginia, Hospital Revenue Bonds (Mountain States Health
      Alliance), Series 2009C,
 
 
 
 
 
 
      7.500%, 7-1-29
 
 
500
 
 
 
544
 
 
 
 
 

1,489
 
Washington - 1.93%
 
 
 
 
 
 
Energy Northwest, Project No. 1 Refunding Electric Revenue
      Bonds, Series 2002-A,
 
 
 
 
 
 
      5.750%, 7-1-16
 
 
250
 
 
 
272
 
Washington Health Care Facilities Authority, Revenue Bonds,
      Series 2009A (Swedish Health Services),
 
 
 
 
 
 
      6.500%, 11-15-33
 
 
500
 
 
 
510
 
Washington Health Care Facilities Authority, Revenue Bonds,
      Series 2007C (Virginia Mason Medical Center),
 
 
 
 
 
 
      5.500%, 8-15-36
 
 
500
 
 
 
388
 
 
 
 
 

1,170
 
Wisconsin - 0.84%
 
 
 
 
 
 
Wisconsin Health and Educational Facilities Authority, Revenue
      Bonds, Series 2009 (Pro Health Care, Inc. Obligated Group),
 
 
 
 
 
 
      6.625%, 2-15-39
 
 
500
 
 
 
510
 
 
 
 
 
 
Wyoming - 1.25%
 
 
 
 
 
 
Housing Authority of the City of Cheyenne, Housing Revenue
      Bonds (Foxcrest II Project), Series 2004,
 
 
 
 
 
 
      5.750%, 6-1-34
 
 
300
 
 
 
233
 
Wyoming Municipal Power Agency, Power Supply System
      Revenue Bonds, 2008 Series A,
 
 
 
 
 
 
      5.250%, 1-1-23
 
 
500
 
 
 
526
 
 
 
 
 

759
 

 
TOTAL MUNICIPAL BONDS - 98.46%    
   
$
59,834
  
(Cost: $59,968)
 
 
 
 
 
 

 
SHORT-TERM SECURITIES - 2.59%    
     
 
Commercial Paper    
 
 
McCormick & Co. Inc.,
 
 
 
 
 
 
      0.250%, 7-1-09
 
 
250
 
 
 
250
 
Sonoco Products Co.,
 
 
 
 
 
 
      0.550%, 7-1-09
 
 
250
 
 
 
250
 
Unilever Capital Corporation,
 
 
 
 
 
 
      0.100%, 7-9-09
 
 
1,071
 
 
 
1,071
 
(Cost: $1,571)
 
 
 
 
$
1,571
  
 
 
 
 
 


 
TOTAL INVESTMENT SECURITIES - 101.05%    
   
$
61,405
  
(Cost: $61,539)
 
 
 
 
 
 

 
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.05%)      
(633
)

NET ASSETS - 100.00%    
   
$
60,772
  
 
Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
 
Level 2
 
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Municipal Bonds
$
––
 
 
 
$59,834
 
 
$
––
 
Short-Term Securities
 
––
 
 
 
1,571
 
 
 
––
 
 
 
––
 
 
 
61,405
 
 
 
––
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
$
––
 
 
 
$61,405
 
 
$
––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
(A)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
(B)Zero coupon bond.
 
(C)Purchased on a when-issued basis with settlement subsequent to June 30, 2009.
 









SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)
   
MUNICIPAL BONDS  
Principal
  
Value
  
Arizona - 2.61%
 
 
 
 
 
 
The Industrial Development Authority of the County of Mohave,
      Tax Exempt Correctional Facilities Contract Revenue Bonds
      (Mohave Prison, LLC Expansion Project), Series 2008,
 
 
 
 
     
      8.000%, 5-1-25
 
$
100
 
 
$
110
 
The Industrial Development Authority of the County of Pima,
      Education Revenue Bonds (Noah Webster Basic School Project),
      Series 2004A,
 
 
 
 
     
      6.125%, 12-15-34
 
 
65
 
 
 
49
 
 
 
 
 

159
 
California - 4.42%
 
 
 
 
 
 
California Municipal Finance Authority, Educational Facilities
      Revenue Bonds (King/Chavez Academies Project),
      Series 2009A,
 
 
 
 
     
      8.750%, 10-1-39
 
 
100
 
 
 
102
 
CRHMFA Homebuyers Fund, Single Family Mortgage Revenue
      Bonds (Mortgage-Backed Securities Program), Series 2007 A,
 
 
 
 
     
      5.450%, 2-1-48
 
 
60
 
 
 
58
 
Redevelopment Agency of the City of San Buenaventura,
      Merged San Buenaventura Redevelopment Project, 2008 Tax
      Allocation Bonds,
 
 
 
 
     
      8.000%, 8-1-38
 
 
100
 
 
 
109
 
 
 
 
 

269
 
Colorado - 6.51%
 
 
 
 
 
 
Colorado Educational and Cultural Facilities Authority,
      Charter School Revenue Bonds (The Classical Academy
      Project), Series 2008A,
 
 
 
 
     
      7.400%, 12-1-38
 
 
85
 
 
 
89
 
Colorado Health Facilities Authority, Revenue Bonds (Christian
      Living Communities Project), Series 2006A,
 
 
 
 
     
      5.750%, 1-1-37
 
 
150
 
 
 
107
 
Cordillera Metropolitan District, General Obligation Bonds,
      Series 2000B,
 
 
 
 
     
      6.200%, 12-1-20
 
 
165
 
 
 
162
 
Wildgrass Metropolitan District (in the City and County of
      Broomfield, Colorado), General Obligation (Limited Tax
      Convertible to Unlimited Tax) Refunding Bonds, Series 2007,
 
 
 
 
     
      6.200%, 12-1-34
 
 
50
 
 
 
38
 
 
 
 
 

396
 
Guam - 3.26%
 
 
 
 
 
 
Government of Guam, General Obligation Bonds, 2009 Series A,
 
 
 
 
     
      7.000%, 11-15-39
 
 
200
 
 
 
198
 
 
 
 
 
 
Illinois - 8.66%
 
 
 
 
 
 
City of Fairview Heights, Illinois, Tax Increment Refunding
      Revenue Bonds (Shoppes at St. Clair Square Redevelopment
      Project), Series 2009A,
 
 
 
 
     
      8.000%, 12-1-28
 
 
45
 
 
 
46
 
Illinois Finance Authority, Revenue Bonds, Series 2009 (Silver Cross
      Hospital and Medical Centers),
 
 
 
 
     
      7.000%, 8-15-44
 
 
200
 
 
 
193
 
Bloomington-Normal Airport Authority of McLean County,
      Illinois, Central Illinois Regional Airport, Passenger Facility
      Charge Revenue Bonds, Series 2001,
 
 
 
 
     
      6.350%, 12-15-24
 
 
225
 
 
 
187
 
Southwestern Illinois Development Authority, Local Government
      Program Revenue Bonds, Series 2009 (City of Granite City
      Project),
 
 
 
 
     
      8.000%, 1-15-22
 
 
100
 
 
 
101
 
 
 
 
 

527
 
Indiana - 4.72%
 
 
 
 
 
 
Indiana Finance Authority, Educational Facilities Revenue Bonds,
      Series 2009A (Irvington Community School Project),
 
 
 
 
     
      9.000%, 7-1-39
 
 
175
 
 
 
183
 
City of Whiting (Indiana), Redevelopment District Tax Increment
      Revenue Bonds, Series 2006 (Standard Avenue Project),
 
 
 
 
     
      5.350%, 1-15-27
 
 
155
 
 
 
104
 
 
 
 
 

287
 
Michigan - 10.36%
 
 
 
 
 
 
City of Detroit, Michigan Sewage Disposal System, Senior
      Lien Revenue Refunding Bonds (Modal Fixed Rate),
      Series 2001(C-1),
 
 
 
 
     
      7.000%, 7-1-27
 
 
200
 
 
 
227
 
City of Detroit, Michigan Sewage Disposal System, Senior
      Lien Revenue Refunding Bonds (Modal Fixed Rate),
      Series 2003(B),
 
 
 
 
     
      7.500%, 7-1-33
 
 
200
 
 
 
233
 
City of Royal Oak Hospital Finance Authority, Hospital Revenue
      and Refunding Bonds (William Beaumont Hospital Obligated
      Group), Series 2009V,
 
 
 
 
     
      8.250%, 9-1-39
 
 
150
 
 
 
170
 
 
 
 
 

630
 
Missouri - 15.07%
 
 
 
 
 
 
City of Arnold, Missouri, Real Property Tax Increment Revenue
      Bonds (Arnold Triangle Redevelopment Project), Series 2009A,
 
 
 
 
     
      7.750%, 5-1-28
 
 
200
 
 
 
201
 
The Industrial Development Authority of the City of Bridgeton,
      Missouri, Sales Tax Revenue Bonds, Series 2008A (Hilltop
      Community Improvement District Project),
 
 
 
 
     
      5.875%, 11-1-35
 
 
50
 
 
 
33
 
The Elm Point Commons Community Improvement District
      (St. Charles, Missouri), Special Assessment Revenue Bonds,
      Series 2007,
 
 
 
 
     
      5.750%, 3-1-27
 
 
110
 
 
 
84
 
City of Jennings, Missouri, Tax Increment and Community
      Improvement Refunding Revenue Bonds, Series 2006
      (Northland Redevelopment Area Project),
 
 
 
 
     
      5.000%, 11-1-23
 
 
180
 
 
 
134
 
The Industrial Development Authority of the City of Kansas City,
      Missouri, Health Care Facilities First Mortgage Revenue Bonds
      (The Bishop Spencer Place, Incorporated Project), Series 1994:
 
 
 
 
     
      6.250%, 1-1-24
 
 
100
 
 
 
78
 
      6.500%, 1-1-35
 
 
100
 
 
 
73
 
City of Lake Ozark, Missouri, Neighborhood Improvement District
      Bonds (Osage National Project), Series 2005,
 
 
 
 
     
      6.100%, 3-1-25
 
 
90
 
 
 
72
 
Lakeside 370 Levee District (St. Charles County, Missouri), Levee
      District Improvement Bonds, Series 2008,
 
 
 
 
     
      7.000%, 4-1-28
 
 
100
 
 
 
87
 
University Place Transportation Development District (St. Louis
      County, Missouri), Subordinate Transportation Sales Tax and
      Special Assessment Revenue Bonds, Series 2009,
 
 
 
 
     
      7.500%, 4-1-32
 
 
150
 
 
 
154
 
 
 
 
 

916
 
Nevada - 0.26%
 
 
 
 
 
 
Overton Power District No. 5 (Nevada), Special Obligation
      Revenue Bonds, Series 2008,
 
 
 
 
     
      8.000%, 12-1-38
 
 
15
 
 
 
16
 
 
 
 
 
 
New Jersey - 2.43%
 
 
 
 
 
 
New Jersey Economic Development Authority, Special Facility
      Revenue Bonds (Continental Airlines, Inc. Project), Series 1999,
 
 
 
 
     
      6.250%, 9-15-19
 
 
115
 
 
 
96
 
New Jersey Educational Facilities Authority, Revenue Refunding
      Bonds, University of Medicine and Dentistry of New Jersey
      Issue, Series 2009 B,
 
 
 
 
     
      7.500%, 12-1-32
 
 
50
 
 
 
52
 
 
 
 
 

148
 
New York - 1.41%
 
 
 
 
 
 
Suffolk County Industrial Development Agency (New York),
      Civic Facility Revenue Bonds, Series 1999A (The Southampton
      Hospital Association Civic Facility),
 
 
 
 
     
      7.250%, 1-1-20
 
 
90
 
 
 
86
 
 
 
 
 
 
Ohio - 5.01%
 
 
 
 
 
 
Buckeye Tobacco Settlement Financing Authority, Tobacco
      Settlement Asset-Backed Bonds, Series 2007,
 
 
 
 
     
      6.500%, 6-1-47
 
 
150
 
 
 
93
 
Greene County Port Authority, Adult Service Facility Revenue
      Bonds, Series 2009 (Greene, Inc. Project),
 
 
 
 
     
      7.500%, 12-1-33
 
 
100
 
 
 
102
 
Toledo Lucas County Port Authority, Development Revenue
      Bonds (Northwest Ohio Bond Fund), Series 2004C (Toledo
      Express Airport Project),
 
 
 
 
     
      6.375%, 11-15-32
 
 
150
 
 
 
110
 
 
 
 
 

305
 
Oklahoma - 1.79%
 
 
 
 
 
 
Oklahoma County Finance Authority, Retirement Facility Revenue
      Bonds (Concordia Life Care Community), Series 2005,
 
 
 
 
     
      6.000%, 11-15-38
 
 
150
 
 
 
109
 
 
 
 
 
 
Puerto Rico - 3.39%
 
 
 
 
 
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue
      Bonds, First Subordinate Series 2009A,
 
 
 
 
     
      6.375%, 8-1-39
 
 
200
 
 
 
206
 
 
 
 
 
 
Texas - 13.53%
 
 
 
 
 
 
Alliance Airport Authority, Inc., Special Facilities Revenue Bonds,
      Series 1991 (American Airlines, Inc. Project),
 
 
 
 
     
      7.000%, 12-1-11
 
 
100
 
 
 
67
 
Cass County Industrial Development Corporation (Texas),
      Environmental Improvement Revenue Bonds, 2009 Series A,
 
 
 
 
     
      9.500%, 3-1-33
 
 
100
 
 
 
116
 
Hopkins County Hospital District (A political subdivision of the
      State of Texas located in Hopkins County), Hospital Revenue
      Bonds, Series 2008,
 
 
 
 
     
      6.000%, 2-15-38
 
 
150
 
 
 
120
 
La Vernia Higher Education Finance Corporation (Winfree
      Academy Charter School), Education Revenue Bonds,
      Series 2009,
 
 
 
 
     
      9.000%, 8-15-38
 
 
100
 
 
 
103
 
Tarrant County Cultural Education Facilities Finance Corporation,
      Retirement Facility Revenue Bonds (Northwest Senior Housing
      Corporation - Edgemere Project), Series 2006A,
 
 
 
 
     
      6.000%, 11-15-26
 
 
250
 
 
 
216
 
Tarrant County Cultural Education Facilities Finance Corporation,
      Retirement Facility Revenue Bonds (Buckingham Senior Living
      Community, Inc. Project), Series 2007,
 
 
 
 
     
      5.625%, 11-15-27
 
 
250
 
 
 
200
 
 
 
 
 

822
 
Utah - 0.82%
 
 
 
 
 
 
Municipal Building Authority of Uintah County, Utah, Lease
      Revenue Bonds, Series 2008A,
 
 
 
 
     
      5.300%, 6-1-28
 
 
50
 
 
 
50
 
 
 
 
 
 
Virginia - 5.80%
 
 
 
 
 
 
Industrial Development Authority of the City of Lexington, Virginia,
      Hospital Facility Revenue Bonds (Stonewall Jackson Hospital),
      Series 2000,
 
 
 
 
     
      7.000%, 7-1-30
 
 
155
 
 
 
139
 
Norfolk Redevelopment and Housing Authority, Multifamily Rental
      Housing Facility Revenue Bonds, Series 1996 (1016 Limited
      Partnership - Sussex Apartments Project),
 
 
 
 
     
      8.000%, 9-1-26
 
 
70
 
 
 
63
 
Industrial Development Authority of Smyth County (Virginia),
      Hospital Revenue Bonds (Mountain States Health Alliance),
      Series 2009B,
 
 
 
 
     
      8.000%, 7-1-38
 
 
135
 
 
 
151
 
 
 
 
 

353
 
Washington - 2.68%
 
 
 
 
 
 
Washington Health Care Facilities Authority, Revenue Bonds,
      Series 2008 (Seattle Cancer Care Alliance),
 
 
 
 
     
      7.375%, 3-1-38
 
 
155
 
 
 
163
 
 
 
 
 


 
TOTAL MUNICIPAL BONDS - 92.73%    
   
$
5,640
  
(Cost: $5,540)
 
 
 
 
 
 
               
SHORT-TERM SECURITIES    
     
 
Master Note - 4.55%    
 
 
Toyota Motor Credit Corporation,
 
 
 
 
     
      0.197%, 7-1-09 (A)
 
 
277
 
 
 
277
 
 
 
 
 
 
Municipal Obligations - Taxable - 3.29%    
 
 
City of Los Angeles, Wastewater System Subordinate Revenue
      Bonds, Variable Rate Refunding, Series 2008-G (Bank of
      America, N.A.),
 
 
 
 
     
      0.190%, 7-1-09 (A)
 
 
200
 
 
 
200
 
 
 
 
 


 
TOTAL SHORT-TERM SECURITIES - 7.84%    
   
$
477
  
(Cost: $477)
 
 
 
 
 
 

               
TOTAL INVESTMENT SECURITIES - 100.57%    
   
$
6,117
  
(Cost: $6,017)
 
 
 
 
 
 

               
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.57%)      
(35
)

               
NET ASSETS - 100.00%    
   
$
6,082
  

               

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
  
Level 2
  
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Municipal Bonds
$
––
 
 
$
5,640
 
 
$
––
 
Short-Term Securities
 
––
 
 
 
477
 
 
 
––
 
 
 
––
 
 
 
6,117
 
 
 
––
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
$
––
 
 
$
6,117
 
 
$
––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
(A)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
 








SCHEDULE OF INVESTMENTS
Ivy Science and Technology Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)
   
COMMON STOCKS  
Shares
  
Value
Agricultural Products - 5.63%    
 
Archer Daniels Midland Company
 
 
576
 
 
$
15,409
Bunge Limited
 
 
439
 
 
 
26,462
 
 
 
 

41,871
Application Software - 7.86%    
 
ACI Worldwide, Inc. (A)
 
 
1,286
 
 
 
17,958
Aspen Technology, Inc. (A)
 
 
3,147
 
 
 
26,842
Lawson Software, Inc. (A)
 
 
2,445
 
 
 
13,643
 
 
 
 

58,443
Biotechnology - 7.90%    
 
Amgen Inc. (A)
 
 
344
 
 
 
18,227
Genzyme Corporation (A)
 
 
352
 
 
 
19,596
Isis Pharmaceuticals, Inc. (A)
 
 
483
 
 
 
7,965
Vertex Pharmaceuticals Incorporated (A)
 
 
363
 
 
 
12,944
 
 
 
 

58,732
Communications Equipment - 4.56%    
 
CommScope, Inc. (A)
 
 
185
 
 
 
4,861
Research In Motion Limited (A)
 
 
409
 
 
 
29,041
 
 
 
 

33,902
Data Processing & Outsourced Services - 7.65%    
 
Alliance Data Systems Corporation (A)
 
 
588
 
 
 
24,229
Euronet Worldwide, Inc. (A)
 
 
726
 
 
 
14,081
Fidelity National Information Services, Inc.
 
 
418
 
 
 
8,333
Lender Processing Services, Inc.
 
 
370
 
 
 
10,283
 
 
 
 

56,926
Diversified Chemicals - 1.63%    
 
E.I. du Pont de Nemours and Company
 
 
178
 
 
 
4,563
FMC Corporation
 
 
161
 
 
 
7,625
 
 
 
 

12,188
Electrical Components & Equipment - 0.61%    
 
POWER-ONE, INC. (A)
 
 
1,192
 
 
 
1,776
Ultralife Corporation (A)
 
 
381
 
 
 
2,731
 
 
 
 

4,507
Electronic Equipment & Instruments - 1.84%    
 
IPG Photonics Corporation (A)
 
 
117
 
 
 
1,285
Itron, Inc. (A)
 
 
225
 
 
 
12,379
 
 
 
 

13,664
Fertilizers & Agricultural Chemicals - 0.50%    
 
Sociedad Quimica y Minera de Chile S.A., ADR
 
 
102
 
 
 
3,684
 
 
 
 
General Merchandise Stores - 0.25%    
 
Conn's, Inc. (A)
 
 
151
 
 
 
1,884
 
 
 
 
Health Care Distributors - 0.10%    
 
Animal Health International, Inc. (A)
 
 
501
 
 
 
777
 
 
 
 
Health Care Equipment - 0.43%    
 
STERIS Corporation
 
 
122
 
 
 
3,190
 
 
 
 
Health Care Facilities - 1.28%    
 
HealthSouth Corporation (A)
 
 
659
 
 
 
9,519
 
 
 
 
Health Care Supplies - 0.09%    
 
TranS1 Inc. (A)
 
 
110
 
 
 
684
 
 
 
 
Health Care Technology - 0.56%    
 
Eclipsys Corporation (A)
 
 
234
 
 
 
4,169
 
 
 
 
Home Entertainment Software - 1.84%    
 
Nintendo Co., Ltd. (B)
 
 
49
 
 
 
13,656
 
 
 
 
Industrial Machinery - 4.04%    
 
ESCO Technologies Inc. (A)
 
 
593
 
 
 
26,580
Pentair, Inc.
 
 
136
 
 
 
3,484
 
 
 
 

30,064
Integrated Telecommunication Services - 2.67%    
 
AT&T Inc.
 
 
490
 
 
 
12,169
CenturyTel, Inc.
 
 
249
 
 
 
7,650
 
 
 
 

19,819
Internet Software & Services - 0.68%    
 
SAVVIS, Inc. (A)
 
 
443
 
 
 
5,071
 
 
 
 
IT Consulting & Other Services - 2.87%    
 
Telvent GIT, S.A.
 
 
985
 
 
 
21,336
 
 
 
 
Life & Health Insurance - 0.54%    
 
Amil Participacoes S.A. (B)
 
 
840
 
 
 
4,046
 
 
 
 
Managed Health Care - 0.14%    
 
AMERIGROUP Corporation (A)
 
 
38
 
 
 
1,012
 
 
 
 
Oil & Gas Equipment & Services - 0.14%    
 
ION Geophysical Corporation (A)
 
 
395
 
 
 
1,015
 
 
 
 
Oil & Gas Exploration & Production - 4.17%    
 
Noble Energy, Inc.
 
 
526
 
 
 
31,036
 
 
 
 
Semiconductors - 8.61%    
 
Cree, Inc. (A)
 
 
941
 
 
 
27,667
Micron Technology, Inc. (A)
 
 
1,335
 
 
 
6,754
Microsemi Corporation (A)
 
 
179
 
 
 
2,463
PMC-Sierra, Inc. (A)
 
 
1,608
 
 
 
12,803
Samsung Electronics Co., Ltd. (B)
 
 
31
 
 
 
14,359
 
 
 
 

64,046
Systems Software - 2.75%    
 
Microsoft Corporation
 
 
859
 
 
 
20,418
 
 
 
 
Wireless Telecommunication Service - 0.93%    
 
Sprint Nextel Corporation (A)
 
 
1,444
 
 
 
6,946
 
 
 
 


TOTAL COMMON STOCKS - 70.27%    
   
$
522,605
(Cost: $540,051)
 
 
 
 
 

PREFERRED STOCKS - 0.86%    
     
Agricultural Products    
 
Archer Daniels Midland Company (A)
 
 
175
 
 
$
6,386
(Cost: $5,854)
 
 
 
 
 
 
 
 
 
 
CORPORATE DEBT SECURITIES
Principal
    
Communications Equipment - 0.76%
 
 
 
 
 
CommScope, Inc., Convertible,
 
 
 
 
 
      3.250%, 7-1-15
 
$
5,000
 
 
 
5,675
 
 
 
 
Data Processing & Outsourced Services - 2.34%
 
 
 
 
 
Alliance Data Systems Corporation, Convertible,
 
 
 
 
 
      4.750%, 5-15-14
 
 
7,200
 
 
 
7,425
Euronet Worldwide, Inc., Convertible,
 
 
 
 
 
      3.500%, 10-15-25
11,450
 
 
 
10,004
 
 
 
 

17,429
Electrical Components & Equipment - 0.84%
 
 
 
 
 
POWER-ONE, INC., Convertible,
 
 
 
 
 
      8.000%, 6-17-13 (C)
 
 
7,500
 
 
 
6,225
 
 
 
 
Health Care Facilities - 1.08%
 
 
 
 
 
LifePoint Hospitals, Inc., Convertible,
 
 
 
 
 
      3.250%, 8-15-25
10,000
 
 
 
8,000
 
 
 
 
Internet Software & Services - 0.81%
 
 
 
 
 
SAVVIS, Inc., Convertible,
 
 
 
 
 
      3.000%, 5-15-12
 
 
8,000
 
 
 
6,010
 
 
 
 
Semiconductors - 1.23%
 
 
 
 
 
Diodes Incorporated, Convertible,
 
 
 
 
 
      2.250%, 10-1-26
 
 
8,170
 
 
 
7,087
Micron Technology, Inc., Convertible,
 
 
 
 
      1.875%, 6-1-14
 
 
3,500
 
 
 
2,065
 
 
 
 

9,152
Technology - 3.74%
 
 
 
 
 
Advanced Micro Devices, Inc., Convertible,
 
 
 
 
 
      5.750%, 8-15-12
20,000
 
 
 
12,301
Eastman Kodak Company, Convertible,
 
 
 
 
 
      3.375%, 10-15-33
10,000
 
 
 
8,050
Equinix, Inc., Convertible,
 
 
 
 
 
      4.750%, 6-15-16
 
 
7,000
 
 
 
7,464
 
 
 
 

27,815
Wireless Telecommunication Service - 1.01%
 
 
 
 
 
Nextel Communications, Inc., Convertible,
 
 
 
 
 
      5.250%, 1-15-10
 
 
7,600
 
 
 
7,524
 
 
 
 


TOTAL CORPORATE DEBT SECURITIES - 11.81%    
$
87,830
(Cost: $78,042)
 
 
 
 
 

SHORT-TERM SECURITIES    
     
Commercial Paper - 15.49%    
 
Abbott Laboratories,
 
 
 
 
 
      0.180%, 7-9-09
 
 
5,000
 
 
 
5,000
American Honda Finance Corp.:
 
 
 
 
 
      0.400%, 7-9-09
 
 
7,000
 
 
 
6,999
      0.300%, 7-21-09
 
 
7,000
 
 
 
6,999
Burlington Northern Santa Fe Corp.,
 
 
 
 
 
      0.540%, 7-2-09
 
 
1,131
 
 
 
1,131
Clorox Co.,
 
 
 
 
 
      0.500%, 7-20-09
 
 
5,000
 
 
 
4,999
Colgate-Palmolive Company,
 
 
 
 
 
      0.150%, 7-10-09
 
 
5,000
 
 
 
5,000
General Mills, Inc.:
 
 
 
 
 
      0.400%, 7-15-09
 
 
4,000
 
 
 
3,999
      0.400%, 7-20-09
 
 
5,000
 
 
 
4,999
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
 
 
 
 
 
      0.500%, 7-15-09
10,000
 
 
 
9,998
Johnson & Johnson,
 
 
 
 
 
      0.100%, 7-13-09
 
 
2,000
 
 
 
2,000
Kellogg Co.:
 
 
 
 
 
      0.385%, 7-2-09
 
 
6,003
 
 
 
6,003
      0.400%, 7-8-09
 
 
259
 
 
 
259
Kitty Hawk Funding Corp.,
 
 
 
 
 
      0.280%, 7-20-09
 
 
5,000
 
 
 
4,999
McCormick & Co. Inc.,
 
 
 
 
 
      0.250%, 7-1-09
 
 
2,500
 
 
 
2,500
Nestle Capital Corp.,
 
 
 
 
 
      0.020%, 7-1-09
 
 
6,475
 
 
 
6,475
PACCAR Financial Corp.,
 
 
 
 
 
      0.200%, 7-8-09
11,318
 
 
 
11,317
Pfizer Inc.,
 
 
 
 
 
      0.150%, 7-22-09
 
 
5,000
 
 
 
5,000
Procter & Gamble Company (The),
 
 
 
 
 
      0.180%, 7-21-09
 
 
5,000
 
 
 
5,000
Roche Holdings, Inc.,
 
 
 
 
 
      0.190%, 7-9-09
 
 
5,000
 
 
 
5,000
Straight-A Funding, LLC (Federal Financing Bank),
 
 
 
 
 
      0.270%, 7-24-09
10,000
 
 
 
9,998
Total Capital SA,
 
 
 
 
 
      0.080%, 7-1-09
 
 
5,000
 
 
 
5,000
Unilever Capital Corporation,
 
 
 
 
 
      0.100%, 7-9-09
 
 
2,500
 
 
 
2,500
 
 
 
 

115,175
Master Note - 1.31%    
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.197%, 7-1-09 (D)
 
 
9,728
 
 
 
9,728
 
 
 
 


TOTAL SHORT-TERM SECURITIES - 16.80%    
   
$
124,903
(Cost: $124,903)
 
 
 
 
 

TOTAL INVESTMENT SECURITIES - 99.74%    
   
$
741,724
(Cost: $748,850)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.26%      
1,952

NET ASSETS - 100.00%    
   
$
743,676

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
 
Level 2
 
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
$
522,605
 
 
$
––
 
 
$
––
 
Preferred Stocks
 
6,386
 
 
 
––
 
 
 
––
 
Corporate Debt Securities
 
––
 
 
 
81,605
 
 
 
6,225
 
Short-Term Securities
 
––
 
 
 
124,903
 
 
 
––
 
 
 
528,991
 
 
 
206,508
 
 
 
6,225
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
$
528,991
 
 
$
206,508
 
 
$
6,225
 
 
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
 
Corporate
Debt
Securities
  
Put
Options
  
Other
Financial
Instruments+
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance 4-1-09
$
3,900
 
 
$
2,512
 
 
$
(5,746
)
Net realized gain (loss)
 
––
 
 
 
(4,242
)
 
 
(5,247
)
Net unrealized appreciation (depreciation)
 
1,655
 
 
 
2,151
 
 
 
2,467
 
Net purchases (sales)
 
670
 
 
 
(421
)
 
 
8,526
 
Transfers in and/or (out) of Level 3 during
      the period
 
––
 
 
 
––
 
 
 
––
 

Ending Balance 6-30-09
$
6,225
 
 
$
––
 
 
$
––
 
Net change in unrealized appreciation (depreciation)
      for all Level 3 investments still held as of 6-30-09
$
1,655
 
 
$
––
 
 
$
––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
(A)No dividends were paid during the preceding 12 months.
 
(B)Listed on an exchange outside the United States.
 
(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At June 30, 2009, the total value of these securities amounted to $6,225 or 0.84% of net assets.
 
(D)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
The following acronym is used throughout this schedule:
ADR = American Depositary Receipt
 











SCHEDULE OF INVESTMENTS
Ivy Small Cap Growth Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)
   
COMMON STOCKS  
Shares
 
Value
Aerospace & Defense - 1.29%    
 
Ladish Co., Inc. (A)
 
 
299
 
 
$
3,877
 
 
 
 
Apparel Retail - 2.67%    
 
Urban Outfitters, Inc. (A)
 
 
259
 
 
 
5,400
Zumiez Inc. (A)
 
 
327
 
 
 
2,621
 
 
 
 

8,021
Apparel, Accessories & Luxury Goods - 1.41%    
 
Under Armour, Inc., Class A (A)
 
 
189
 
 
 
4,229
 
 
 
 
Application Software - 11.41%    
 
ACI Worldwide, Inc. (A)
 
 
515
 
 
 
7,193
Blackboard Inc. (A)
 
 
188
 
 
 
5,431
FactSet Research Systems, Inc.
 
 
124
 
 
 
6,185
Solera Holdings, Inc. (A)
 
 
270
 
 
 
6,848
Sonic Solutions (A)
 
 
804
 
 
 
2,372
Ultimate Software Group, Inc. (The) (A)
 
 
257
 
 
 
6,232
 
 
 
 

34,261
Auto Parts & Equipment - 2.69%    
 
LKQ Corporation (A)
 
 
492
 
 
 
8,087
 
 
 
 
Automotive Retail - 3.09%    
 
Monro Muffler Brake, Inc.
 
 
109
 
 
 
2,802
O'Reilly Automotive, Inc. (A)
 
 
170
 
 
 
6,463
 
 
 
 

9,265
Casinos & Gaming - 3.77%    
 
Scientific Games Corporation, Class A (A)
 
 
719
 
 
 
11,334
 
 
 
 
Computer Hardware - 2.24%    
 
Stratasys, Inc. (A)
 
 
612
 
 
 
6,729
 
 
 
 
Construction & Farm Machinery & Heavy Trucks - 0.84%    
 
Westinghouse Air Brake Technologies Corporation
 
 
79
 
 
 
2,535
 
 
 
 
Education Services - 8.43%    
 
Capella Education Company (A)
 
 
228
 
 
 
13,672
K12 Inc. (A)
 
 
201
 
 
 
4,327
Strayer Education, Inc.
 
 
34
 
 
 
7,307
 
 
 
 

25,306
Electronic Components - 3.60%    
 
DTS, Inc. (A)
 
 
400
 
 
 
10,823
 
 
 
 
Health Care Distributors - 1.47%    
 
PSS World Medical, Inc. (A)
 
 
239
 
 
 
4,426
 
 
 
 
Health Care Equipment - 9.27%    
 
Hologic, Inc. (A)
 
 
391
 
 
 
5,570
NuVasive, Inc. (A)
 
 
225
 
 
 
10,030
ResMed Inc. (A)
 
 
112
 
 
 
4,558
Volcano Corporation (A)
 
 
547
 
 
 
7,649
 
 
 
 

27,807
Health Care Services - 1.00%    
 
Healthways, Inc. (A)
 
 
224
 
 
 
3,017
 
 
 
 
Health Care Technology - 2.91%    
 
Cerner Corporation (A)
 
 
69
 
 
 
4,273
Phase Forward Incorporated (A)
 
 
296
 
 
 
4,468
 
 
 
 

8,741
Human Resource & Employment Services - 1.09%    
 
Resources Connection, Inc. (A)
 
 
190
 
 
 
3,262
 
 
 
 
Internet Software & Services - 4.60%    
 
Bankrate, Inc. (A)
 
 
173
 
 
 
4,354
CyberSource Corporation (A)
 
 
243
 
 
 
3,715
Omniture, Inc. (A)
 
 
457
 
 
 
5,735
 
 
 
 

13,804
Investment Banking & Brokerage - 4.10%    
 
Greenhill & Co., Inc.
 
 
97
 
 
 
7,011
Lazard Group LLC
 
 
197
 
 
 
5,301
 
 
 
 

12,312
Oil & Gas Equipment & Services - 4.93%    
 
Core Laboratories N.V.
 
 
57
 
 
 
4,985
Dril-Quip, Inc. (A)
 
 
165
 
 
 
6,286
Oceaneering International, Inc. (A)
 
 
78
 
 
 
3,529
 
 
 
 

14,800
Oil & Gas Exploration & Production - 0.82%    
 
Cabot Oil & Gas Corporation
 
 
80
 
 
 
2,451
 
 
 
 
Packaged Foods & Meats - 1.18%    
 
Smart Balance, Inc. (A)
 
 
521
 
 
 
3,551
 
 
 
 
Personal Products - 2.66%    
 
Alberto-Culver Company
 
 
314
 
 
 
7,987
 
 
 
 
Railroads - 1.67%    
 
Kansas City Southern (A)
 
 
311
 
 
 
5,004
 
 
 
 
Research & Consulting Services - 1.22%    
 
Advisory Board Company (The) (A)
 
 
143
 
 
 
3,675
 
 
 
 
Restaurants - 0.84%    
 
P.F. Chang's China Bistro, Inc. (A)
 
 
79
 
 
 
2,533
 
 
 
 
Semiconductor Equipment - 0.74%    
 
Lam Research Corporation (A)
 
 
85
 
 
 
2,210
 
 
 
 
Semiconductors - 2.86%    
 
Microchip Technology Incorporated
 
 
380
 
 
 
8,574
 
 
 
 
Specialized Finance - 5.37%    
 
Financial Federal Corporation
 
 
51
 
 
 
1,049
Portfolio Recovery Associates, Inc. (A)
 
 
389
 
 
 
15,066
 
 
 
 

16,115
Systems Software - 4.46%    
 
MICROS Systems, Inc. (A)
 
 
529
 
 
 
13,402
 
 
 
 


TOTAL COMMON STOCKS - 92.63%    
   
$
278,138
(Cost: $278,630)
 
 
 
 
 

SHORT-TERM SECURITIES
Principal
    
Commercial Paper - 6.64%    
 
American Honda Finance Corp.,
 
 
 
 
 
      0.300%, 7-21-09
 
$
4,000
 
 
 
3,999
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
 
 
 
 
 
      0.500%, 7-15-09
 
 
5,000
 
 
 
4,999
Kraft Foods Inc.,
 
 
 
 
 
      0.290%, 7-10-09
 
 
3,000
 
 
 
3,000
Total Capital SA,
 
 
 
 
 
      0.080%, 7-1-09
 
 
4,935
 
 
 
4,935
Unilever Capital Corporation,
 
 
 
 
 
      0.160%, 7-9-09
 
 
3,000
 
 
 
3,000
 
 
 
 

19,933
Master Note - 0.63%    
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.197%, 7-1-09 (B)
 
 
1,899
 
 
 
1,899
 
 
 
 


TOTAL SHORT-TERM SECURITIES - 7.27%    
   
$
21,832
(Cost: $21,832)
 
 
 
 
 

TOTAL INVESTMENT SECURITIES - 99.90%    
   
$
299,970
(Cost: $300,462)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.10%      
292

NET ASSETS - 100.00%    
   
$
300,262

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment?s fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
 
Level 2
 
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
$
278,138
 
 
$
––
 
 
$
––
 
Short-Term Securities
 
––
 
 
 
21,832
 
 
 
––
 
 
 
278,138
 
 
 
21,832
 
 
 
––
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
$
278,138
 
 
$
21,832
 
 
$
––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
(A)No dividends were paid during the preceding 12 months.
 
(B)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 









SCHEDULE OF INVESTMENTS  
Ivy Tax-Managed Equity Fund
      (in thousands)
JUNE 30, 2009 (UNAUDITED)
   
COMMON STOCKS  
Shares
  
Value
Aerospace & Defense - 3.08%    
 
Lockheed Martin Corporation
 
 
––
*
 
$
27
Raytheon Company
 
 
1
 
 
 
37
 
 
 
 

64
Air Freight & Logistics - 0.72%
 
 
 
Expeditors International of Washington, Inc.
 
 
––
*
 
 
15
 
 
 
 
Asset Management & Custody Banks - 0.92%
 
 
 
BlackRock, Inc., Class A
 
 
––
*
 
 
19
 
 
 
 
Automotive Retail - 1.16%
 
 
 
AutoZone, Inc. (A)
 
 
––
*
 
 
24
 
 
 
 
Biotechnology - 4.54%
 
 
 
Gilead Sciences, Inc. (A)
 
 
2
 
 
 
94
 
 
 
 
Communications Equipment - 9.87%
 
 
 
Cisco Systems, Inc. (A)
 
 
2
 
 
 
37
Nokia Corporation, Series A, ADR
 
 
2
 
 
 
34
QUALCOMM Incorporated
 
 
2
 
 
 
111
Research In Motion Limited (A)
 
 
––
*
 
 
23
 
 
 
 

205
Computer Hardware - 6.45%
 
 
 
Apple Inc. (A)
 
 
1
 
 
 
78
Hewlett-Packard Company
 
 
1
 
 
 
56
 
 
 
 

134
Construction & Farm Machinery & Heavy Trucks - 0.87%
 
 
 
Deere & Company
 
 
––
*
 
 
18
 
 
 
 
Data Processing & Outsourced Services - 2.36%
 
 
 
Visa Inc., Class A
 
 
1
 
 
 
49
 
 
 
 
Department Stores - 1.20%
 
 
 
Kohl's Corporation (A)
 
 
1
 
 
 
25
 
 
 
 
Electrical Components & Equipment - 1.54%
 
 
 
Emerson Electric Co.
 
 
––
*
 
 
14
First Solar, Inc. (A)
 
 
––
*
 
 
18
 
 
 
 

32
Fertilizers & Agricultural Chemicals - 2.74%
 
 
 
Monsanto Company
 
 
1
 
 
 
57
 
 
 
 
General Merchandise Stores - 1.20%
 
 
 
Target Corporation
 
 
1
 
 
 
25
 
 
 
 
Health Care Equipment - 3.80%
 
 
 
Baxter International Inc.
 
 
1
 
 
 
42
Stryker Corporation
 
 
––
*
 
 
17
Zimmer Holdings, Inc. (A)
 
 
––
*
 
 
20
 
 
 
 

79
Health Care Supplies - 3.08%
 
 
 
Alcon, Inc.
 
 
––
*
 
 
37
DENTSPLY International Inc.
 
 
1
 
 
 
27
 
 
 
 

64
Home Entertainment Software - 1.64%
 
 
 
Activision Blizzard, Inc. (A)
 
 
3
 
 
 
34
 
 
 
 
Home Improvement Retail - 3.09%
 
 
 
Home Depot, Inc. (The)
 
 
1
 
 
 
29
Lowe's Companies, Inc.
 
 
2
 
 
 
35
 
 
 
 

64
Household Products - 2.65%
 
 
 
Colgate-Palmolive Company
 
 
1
 
 
 
55
 
 
 
 
Hypermarkets & Super Centers - 1.20%
 
 
 
Costco Wholesale Corporation
 
 
1
 
 
 
25
 
 
 
 
Industrial Gases - 0.39%
 
 
 
Praxair, Inc.
 
 
––
*
 
 
8
 
 
 
 
Internet Retail - 1.30%
 
 
 
Amazon.com, Inc. (A)
 
 
––
*
 
 
27
 
 
 
 
Internet Software & Services - 3.23%
 
 
 
Google Inc., Class A (A)
 
 
––
*
 
 
67
 
 
 
 
Investment Banking & Brokerage - 3.90%
 
 
 
Goldman Sachs Group, Inc. (The)
 
 
1
 
 
 
81
 
 
 
 
Life Sciences Tools & Services - 1.49%
 
 
 
Thermo Fisher Scientific Inc. (A)
 
 
1
 
 
 
31
 
 
 
 
Oil & Gas Drilling - 2.75%
 
 
 
Transocean Inc. (A)
 
 
1
 
 
 
57
 
 
 
 
Oil & Gas Equipment & Services - 6.06%
 
 
 
Schlumberger Limited
 
 
1
 
 
 
72
Smith International, Inc.
 
 
1
 
 
 
23
Weatherford International Ltd. (A)
 
 
2
 
 
 
31
 
 
 
 

126
Other Diversified Financial Services - 1.44%
 
 
 
JPMorgan Chase & Co.
 
 
1
 
 
 
30
 
 
 
 
Pharmaceuticals - 4.33%
 
 
 
Abbott Laboratories
 
 
1
 
 
 
52
Roche Holding Ltd, ADR
 
 
1
 
 
 
38
 
 
 
 

90
Restaurants - 1.44%
 
 
 
YUM! Brands, Inc.
 
 
1
 
 
 
30
 
 
 
 
Semiconductors - 4.77%
 
 
 
Broadcom Corporation, Class A (A)
 
 
2
 
 
 
44
Microchip Technology Incorporated
 
 
2
 
 
 
55
 
 
 
 

99
Soft Drinks - 3.76%
 
 
 
Coca-Cola Company (The)
 
 
1
 
 
 
54
PepsiCo, Inc.
 
 
––
*
 
 
24
 
 
 
 

78
Specialized Finance - 1.83%
 
 
 
IntercontinentalExchange, Inc. (A)
 
 
––
*
 
 
38
 
 
 
 
Specialty Chemicals - 1.01%
 
 
 
Ecolab Inc.
 
 
1
 
 
 
21
 
 
 
 
Systems Software - 3.18%
 
 
 
Microsoft Corporation
 
 
3
 
 
 
66
 
 
 
 


TOTAL COMMON STOCKS - 92.99%    
   
$
1,931
(Cost: $1,847)
 
 
 
 
 
             
SHORT-TERM SECURITIES - 4.00%  
Principal
   
Master Note    
 
Toyota Motor Credit Corporation,
 
 
 
 
   
      0.197%, 7-1-09 (B)
 
$83
 
 
$
83
(Cost: $83)
 
 
 
 
 
 
 
 
   
TOTAL INVESTMENT SECURITIES - 96.99%    
   
$
2,014
(Cost: $1,930)
 
 
 
 
 
             
CASH AND OTHER ASSETS, NET OF LIABILITIES - 3.01%      
62
             
NET ASSETS - 100.00%    
   
$
2,076
             

Notes to Schedule of Investments
 
In accordance with Accounting Standards Codification (ASC) Section 820-10 (formerly Financial Accounting Standard 157), fair value is defined as the price that the Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the as set or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Fund's investments by the above ASC 820-10 fair value hierarchy levels as of June 30, 2009:
 
 
Level 1
  
Level 2
  
Level 3
Investments in Securities
 
 
 
 
 
 
 
 
 
 
 
Common Stocks
$
1,931
 
 
$
––
 
 
$
––
 
Short-Term Securities
 
––
 
 
 
83
 
 
 
––
 
 
 
1,931
 
 
 
83
 
 
 
––
 
Other Financial Instruments+
 
––
 
 
 
––
 
 
 
––
 
Total
$
1,931
    
$
83
    
$
––
 
 
+Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as written options, futures, forward foreign currency contracts and swap contracts.
 
*Not shown due to rounding.
 
(A)No dividends were paid during the preceding 12 months.
 
(B)Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2009.
 
The following acronym is used throughout this schedule:
ADR = American Depositary Receipt
 



ITEM 2. CONTROLS AND PROCEDURES.
   
   

(a)

The Registrant's Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant's management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
   

(b)

There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
 

ITEM 3. EXHIBITS.
   
   
 

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).
 
 

Attached hereto as Exhibit 99.CERT.
 

SIGNATURES
 
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 

Ivy Funds, Inc.

(Registrant)

   
   

By

/s/Mara D. Herrington
 

Mara D. Herrington, Vice President and Secretary
 
 

Date: August 27, 2009
 
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   
   

By

/s/Henry J. Herrmann
 

Henry J. Herrmann, Principal Executive Officer
 
 

Date: August 27, 2009
   
   

By

/s/Joseph W. Kauten
 

Joseph W. Kauten, Principal Financial Officer
 
 

Date: August 27, 2009
EX-99.CERT 2 ifi_nqcert.htm CERTIFICATIONS

     Exhibit 99.CERT

 

CERTIFICATION

I, Henry J. Herrmann, certify that:

1.     I have reviewed this report on Form N-Q of Ivy Funds, Inc.;

2     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

     a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that the material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     c)     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

     d)     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions):

     a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

     b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: August 27, 2009

/s/Henry J. Herrmann
 

Henry J. Herrmann, Principal Executive Officer

 

CERTIFICATION

I, Joseph W. Kauten, certify that:

1.     I have reviewed this report on Form N-Q of Ivy Funds, Inc.;

2     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

     a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that the material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     c)     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

     d)     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions):

     a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

     b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

Date: August 27, 2009

/s/Joseph W. Kauten
 

Joseph W. Kauten, Principal Financial Officer
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