497 1 a_72503stkr.htm STICKER 497E IVY FUNDS Ivy Asset Strategy Fund Ivy Core Equity Fund Ivy Cundill Global Value Fund Ivy Dividend Income Fund Ivy European Opportunities Fund Ivy Global Natural Resources Fund Ivy High Income Fund Ivy International Fund Ivy International Growth Fund Ivy International Value Fund Ivy Large Cap Growth Fund Ivy Limited-Term Bond Fund Ivy Mid Cap Growth Fund Ivy Money Market Fund Ivy Municipal Bond Fund Ivy Pacific Opportunities Fund Ivy Science and Technology Fund Ivy Small Cap Growth Fund Ivy Tax-Managed Equity Fund Supplement Dated July 25, 2003 To Prospectus Dated July 1, 2003 (and supplemented July 7, 2003 and July 15, 2003) 1. The following Funds now offer Class Y shares: Ivy Cundill Global Value Fund Ivy European Opportunities Fund Ivy Global Natural Resources Fund Ivy International Fund Ivy International Value Fund Ivy Pacific Opportunities Fund The general information and disclosure in the Prospectus regarding Class Y shares also applies to the Class Y shares of each of the above-referenced Funds. 2. The following supplements the information in the "Fees and Expenses" section for: IVY CUNDILL GLOBAL VALUE FUND Fees and Expenses The following tables describe the fees and expenses that you may pay if you buy and hold Class Y shares of the Fund: Shareholder Fees fees paid directly from your investment Maximum sales charge (load) imposed on purchase (as a % of offering price) None Maximum deferred sales charge (load) (as a % of purchase price) None Redemption fee/exchange fee (as a % of amount redeemed, if applicable) ([1]) 2.00% Estimated Annual Fund Operating Expenses expenses that are deducted from Fund assets([2]) Management fees 1.00% Distribution and/or service (12b-1) fees 0.25% Other expenses 3.78% Total annual Fund operating expenses 5.03% Expenses reimbursed([3]) 2.28% Net Fund operating expenses 2.75% ([1])If you choose to receive your redemption proceeds via Federal Funds wire, a $10 wire fee will be charged to your account. Class Y shares redeemed or exchanged within 30 days of purchase are subject to a 2.00% redemption/exchange fee. ([2])The expense information shown above has been restated to reflect current fees. Expenses reimbursed are estimates based on Class A expenses for the fiscal year ended December 31, 2002. ([3])The Fund's Investment Manager has contractually agreed to reimburse the Fund's expenses for the fiscal year ending December 31, 2003, and for the following eight years, to the extent necessary to ensure that the Fund's Annual Fund Operating Expenses, when calculated at the Fund level, do not exceed 2.50% of the Fund's average net assets (excluding 12b-1 fees and certain other expenses). Example This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. The example assumes that (a) you invest $10,000 in the particular class of shares for the time periods specified and then redeem all of your shares at the end of those periods, (b) your investment has a 5% return each year, and (c) the expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 1 Year 3 Years 5 Years 10 Years Class Y Shares $278 $853 $1,454 $3,362 3. The following supplements the information in the "Fees and Expenses" section for: IVY EUROPEAN OPPORTUNITIES FUND Fees and Expenses The following tables describe the fees and expenses that you may pay if you buy and hold Class Y shares of the Fund: Shareholder Fees fees paid directly from your investment Maximum sales charge (load) imposed on purchase (as a % of offering price) None Maximum deferred sales charge (load) (as a % of purchase price) None Redemption fee/exchange fee (as a % of amount redeemed, if applicable) ([1]) 2.00% Estimated Annual Fund Operating Expenses expenses that are deducted from Fund assets Management fees([2]) 1.00% Distribution and/or service (12b-1) fees 0.25% Other expenses 0.96% Total annual Fund operating expenses 2.21% ([1])If you choose to receive your redemption proceeds via Federal Funds wire, a $10 wire fee will be charged to your account. Class Y shares redeemed or exchanged within 30 days of purchase are subject to a 2.00% redemption/exchange fee. ([2])Management fees are reduced to 0.85% for net assets over $250 million, and reduced to 0.75% on net assets over $500 million. Example This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. The example assumes that (a) you invest $10,000 in the particular class of shares for the time periods specified and then redeem all of your shares at the end of those periods, (b) your investment has a 5% return each year, and (c) the expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 1 Year 3 Years 5 Years 10 Years Class Y Shares $224 $691 $1,185 $2,544 4. The following supplements the information in the "Fees and Expenses" section for: IVY GLOBAL NATURAL RESOURCES FUND Fees and Expenses The following tables describe the fees and expenses that you may pay if you buy and hold Class Y shares of the Fund: Shareholder Fees fees paid directly from your investment Maximum sales charge (load) imposed on purchase (as a % of offering price) None Maximum deferred sales charge (load) (as a % of purchase price) None Redemption fee/exchange fee (as a % of amount redeemed, if applicable) ([1]) 2.00% Estimated Annual Fund Operating Expenses expenses that are deducted from Fund assets Management fees 1.00% Distribution and/or service (12b-1) fees 0.25% Other expenses 1.19% Total annual Fund operating expenses 2.44% ([1])If you choose to receive your redemption proceeds via Federal Funds wire, a $10 wire fee will be charged to your account. Class Y shares redeemed or exchanged within 30 days of purchase are subject to a 2.00% redemption/exchange fee. Example This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. The example assumes that (a) you invest $10,000 in the particular class of shares for the time periods specified and then redeem all of your shares at the end of those periods, (b) your investment has a 5% return each year, and (c) the expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 1 Year 3 Years 5 Years 10 Years Class Y Shares $247 $761 $1,301 $2,776 5. The following supplements the information in the "Fees and Expenses" section for: IVY INTERNATIONAL FUND Fees and Expenses The following tables describe the fees and expenses that you may pay if you buy and hold Class Y shares of the Fund: Shareholder Fees fees paid directly from your investment Maximum sales charge (load) imposed on purchase (as a % of offering price) None Maximum deferred sales charge (load) (as a % of purchase price) None Redemption fee/exchange fee (as a % of amount redeemed, if applicable) ([1]) 2.00% Estimated Annual Fund Operating Expenses expenses that are deducted from Fund assets Management fees([2]) 1.00% Distribution and/or service (12b-1) fees 0.25% Other expenses 0.75% Total annual Fund operating expenses 2.00% ([1])If you choose to receive your redemption proceeds via Federal Funds wire, a $10 wire fee will be charged to your account. Class Y shares redeemed or exchanged within 30 days of purchase are subject to a 2.00% redemption/exchange fee. ([2])Management fees are reduced to 0.90% for net assets over $2.0 billion, and reduced to 0.80% on net assets over $2.5 billion and reduced to 0.70% for net assets over $3.0 billion. Example This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. The example assumes that (a) you invest $10,000 in the particular class of shares for the time periods specified and then redeem all of your shares at the end of those periods, (b) your investment has a 5% return each year, and (c) the expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 1 Year 3 Years 5 Years 10 Years Class Y Shares $203 $627 $1,078 $2,327 6. The following supplements the information in the "Fees and Expenses" section for: IVY INTERNATIONAL VALUE FUND Fees and Expenses The following tables describe the fees and expenses that you may pay if you buy and hold Class Y shares of the Fund: Shareholder Fees fees paid directly from your investment Maximum sales charge (load) imposed on purchase (as a % of offering price) None Maximum deferred sales charge (load) (as a % of purchase price) None Redemption fee/exchange fee (as a % of amount redeemed, if applicable) ([1]) 2.00% Estimated Annual Fund Operating Expenses expenses that are deducted from Fund assets Management fees 1.00% Distribution and/or service (12b-1) fees 0.25% Other expenses 1.13% Total annual Fund operating expenses 2.38% ([1])If you choose to receive your redemption proceeds via Federal Funds wire, a $10 wire fee will be charged to your account. Class Y shares redeemed or exchanged within 30 days of purchase are subject to a 2.00% redemption/exchange fee. Example This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. The example assumes that (a) you invest $10,000 in the particular class of shares for the time periods specified and then redeem all of your shares at the end of those periods, (b) your investment has a 5% return each year, and (c) the expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 1 Year 3 Years 5 Years 10 Years Class Y Shares $241 $742 $1,270 $2,716 7. The following supplements the information in the "Fees and Expenses" section for: IVY PACIFIC OPPORTUNITIES FUND Fees and Expenses The following tables describe the fees and expenses that you may pay if you buy and hold Class Y shares of the Fund: Shareholder Fees fees paid directly from your investment Maximum sales charge (load) imposed on purchase (as a % of offering price) None Maximum deferred sales charge (load) (as a % of purchase price) None Redemption fee/exchange fee (as a % of amount redeemed, if applicable) ([1]) 2.00% Estimated Annual Fund Operating Expenses expenses that are deducted from Fund assets([2]) Management fees 1.00% Distribution and/or service (12b-1) fees 0.25% Other expenses 2.18% Total annual Fund operating expenses 3.43% Expenses reimbursed([3]) 0.68% Net Fund operating expenses 2.75% ([1])If you choose to receive your redemption proceeds via Federal Funds wire, a $10 wire fee will be charged to your account. Class Y shares redeemed or exchanged within 30 days of purchase are subject to a 2.00% redemption/exchange fee. ([2])The expense information shown above has been restated to reflect current fees. Expenses reimbursed are estimates based on Class A expenses for the fiscal year ended December 31, 2002. ([3])The Fund's Investment Manager has contractually agreed to reimburse the Fund's expenses for the fiscal year ending December 31, 2003, and for the following eight years, to the extent necessary to ensure that the Fund's Annual Fund Operating Expenses, when calculated at the Fund level, do not exceed 2.50% of the Fund's average net assets (excluding 12b-1 fees and certain other expenses). Example This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. The example assumes that (a) you invest $10,000 in the particular class of shares for the time periods specified and then redeem all of your shares at the end of those periods, (b) your investment has a 5% return each year, and (c) the expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 1 Year 3 Years 5 Years 10 Years Class Y Shares $278 $853 $1,454 $3,164 8. The Advisor Class of shares of the following Funds is closed to new investors: Ivy Cundill Global Value Fund Ivy European Opportunities Fund Ivy Global Natural Resources Fund Ivy International Fund Ivy International Value Fund Ivy Pacific Opportunities Fund Advisor Class shareholders may exchange into Class Y shares of any of the funds in the Ivy Family of Funds or into Class A shares of Ivy Money Market Fund. WRS3300C