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:    811-1028

Ivy Funds

(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:  December 31, 2005

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (ss. 239.24 and 274.5 of this chapter) to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under that Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. SCHEDULE OF INVESTMENTS.

The Investments of Ivy Balanced Fund
December 31, 2005
COMMON STOCKS	Shares			Value
Air Transportation - 0.93%
Southwest Airlines Co.		55,300	$	908,579
Aircraft - 1.19%
Boeing Company (The)		16,600		1,165,984
Banks - 4.70%
Bank of America Corporation		16,600		766,090
Citigroup Inc.		33,700		1,635,461
Northern Trust Corporation		27,800		1,439,623
Wachovia Corporation		14,300		755,898
				4,597,072
Beverages - 0.92%
Brown-Forman Corporation, Class B		12,900		894,228
Business Equipment and Services - 2.34%
Cintas Corporation		33,200		1,365,184
Pitney Bowes Inc.		21,800		921,050
				2,286,234
Capital Equipment - 1.95%
Caterpillar Inc.		13,700		791,449
Ingersoll-Rand Company Limited, Class A		27,600		1,114,212
				1,905,661
Chemicals -- Specialty - 0.90%
Air Products and Chemicals, Inc.		14,900		881,931
Communications Equipment - 1.75%
Nokia Corporation, Series A, ADR		56,200		1,028,460
Plantronics, Inc.		24,200		684,860
				1,713,320
Computers -- Micro - 2.13%
Apple Computer, Inc.*		17,400		1,248,102
Dell Inc.*		27,883		834,956
				2,083,058
Computers -- Peripherals - 3.43%
Adobe Systems Incorporated		36,100		1,333,715
Microsoft Corporation		77,158		2,014,981
				3,348,696
Defense - 1.58%
General Dynamics Corporation		13,500		1,539,675
Electrical Equipment - 0.98%
Emerson Electric Co.		12,800		956,160
Electronic Instruments - 0.97%
Lam Research Corporation*		26,600		949,221
Finance Companies - 2.64%
SLM Corporation		46,900		2,583,721
Food and Related - 3.05%
Archer Daniels Midland Company		42,500		1,048,050
Campbell Soup Company		41,800		1,244,386
Kellogg Company		16,000		691,520
				2,983,956
Health Care -- Drugs - 4.46%
Allergan, Inc.		13,500		1,457,460
Amgen Inc.*		13,500		1,063,260
Gilead Sciences, Inc.*		18,900		993,479
Novartis AG, ADR		16,100		844,928
				4,359,127
Health Care -- General - 4.12%
Biomet, Inc.		27,400		1,001,196
Boston Scientific Corporation*		23,800		582,862
DENTSPLY International Inc.		16,300		874,087
Johnson & Johnson		26,200		1,574,620
				4,032,765
Hospital Supply and Management - 2.83%
Medtronic, Inc.		21,800		1,255,026
UnitedHealth Group Incorporated		24,300		1,510,002
				2,765,028
Household -- General Products - 1.48%
Colgate-Palmolive Company		26,300		1,442,555
Insurance -- Life - 1.09%
Aflac Incorporated		23,000		1,067,660
Insurance -- Property and Casualty - 2.90%
Allstate Corporation (The)		15,800		854,306
Berkshire Hathaway Inc., Class B*		400		1,174,200
Chubb Corporation (The)		8,300		810,495
				2,839,001
Motion Pictures - 1.38%
News Corporation Limited, Class A		63,400		985,870
News Corporation Limited, Class B		22,000		365,420
				1,351,290
Multiple Industry - 5.38%
General Electric Company		63,680		2,231,984
Genworth Financial, Inc.		20,700		715,806
Las Vegas Sands, Inc.*		32,300		1,274,881
NRG Energy, Inc.*		22,000		1,036,640
				5,259,311
Non-Residential Construction - 0.92%
Fluor Corporation		11,700		903,942
Petroleum -- International - 3.89%
BP p.l.c., ADR		19,000		1,220,180
ChevronTexaco Corporation		13,500		766,395
Exxon Mobil Corporation		32,400		1,819,908
				3,806,483
Petroleum -- Services - 4.07%
Nabors Industries Ltd.*		12,100		916,575
Schlumberger Limited		25,100		2,438,465
Smith International, Inc.		16,800		623,448
				3,978,488
Publishing - 1.08%
Meredith Corporation		20,100		1,052,034
Retail -- General Merchandise - 1.44%
Target Corporation		25,600		1,407,232
Security and Commodity Brokers - 2.41%
American Express Company		17,800		915,988
Ameritrade Holding Corporation*		17,100		410,314
Franklin Resources, Inc.		11,000		1,034,110
				2,360,412
Timesharing and Software - 2.05%
eBay Inc.*		23,100		998,498
Paychex, Inc.		26,400		1,006,500
				2,004,998
Tobacco - 0.75%
Altria Group, Inc.		9,800		732,256
Trucking and Shipping - 1.21%
Expeditors International of Washington, Inc.		17,600		1,187,384
Utilities -- Electric - 2.65%
Dominion Resources, Inc.		15,700		1,212,040
Exelon Corporation		26,000		1,381,640
				2,593,680
TOTAL COMMON STOCKS - 73.57%			$	71,941,142
(Cost: $60,681,394)

CORPORATE DEBT SECURITIES	Principal Amount in Thousands
Banks - 0.28%
Wells Fargo Bank, N.A.,
7.55%, 6-21-10	$	250		276,120
Beverages - 0.35%
Diageo Capital plc,
3.5%, 11-19-07		350		340,895
Business Equipment and Services - 0.38%
PHH Corporation,
7.125%, 3-1-13		350		369,559
Chemicals -- Specialty - 0.36%
Vulcan Materials Company,
6.4%, 2-1-06		350		350,077
Finance Companies - 2.49%
American International Group,
3.85%, 11-26-07 (A)		500		490,344
Banco Hipotecario Nacional:
7.916%, 7-25-09 (A)		6		163
8.0%, 3-31-11 (A)		351		52,581
First Union-Lehman Brothers-Bank of America       Commercial Mortgage Trust,
6.56%, 11-18-35		453		465,411
General Motors Acceptance Corporation,
6.125%, 8-28-07		300		278,093
Prudential Insurance Company of America,
6.6%, 5-15-08 (A)		750		779,399
Unilever Capital Corporation,
5.9%, 11-15-32		350		370,722
				2,436,713
Food and Related - 0.84%
Archer-Daniels-Midland Company,
7.0%, 2-1-31		700		824,790
Insurance -- Life - 0.50%
StanCorp Financial Group, Inc.,
6.875%, 10-1-12		450		484,038
Multiple Industry - 1.46%
Cargill, Inc.,
6.375%, 6-1-12 (A)		400		426,909
General Electric Capital Corporation,
2.85%, 1-30-06	1,000			998,909
				1,425,818
Real Estate Investment Trust - 0.82%
Vornado Realty L.P.,
5.625%, 6-15-07		800		805,596
TOTAL CORPORATE DEBT SECURITIES - 7.48%			$	7,313,606
(Cost: $7,249,895)
OTHER GOVERNMENT SECURITY - 0.61%
Canada
Hydro-Quebec,
8.0%, 2-1-13		500	$	593,121
(Cost: $582,104)
UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations - 6.25%
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
6.23%, 1-1-08		425		430,958
6.0%, 9-1-17		500		512,387
5.0%, 1-1-18		559		553,630
5.5%, 4-1-18		515		518,970
6.5%, 10-1-28		194		203,097
6.5%, 2-1-29		43		45,005
7.0%, 5-1-31		38		40,006
7.5%, 5-1-31		68		72,050
7.0%, 7-1-31		59		61,999
7.0%, 9-1-31		81		84,750
7.0%, 9-1-31		61		63,951
7.0%, 11-1-31		195		203,722
6.5%, 2-1-32		218		224,672
7.0%, 2-1-32		250		262,302
7.0%, 2-1-32		125		131,416
6.5%, 3-1-32		61		63,323
7.0%, 3-1-32		139		145,575
7.0%, 6-1-32		42		44,338
7.0%, 7-1-32		272		285,779
6.5%, 8-1-32		103		106,832
6.0%, 9-1-32		777		785,200
6.5%, 9-1-32		177		183,630
5.5%, 5-1-33		365		361,803
5.5%, 5-1-33		216		214,799
5.5%, 5-1-33		168		166,537
5.5%, 6-1-33		347		344,492
				6,111,223
Treasury Obligations - 10.29%
United States Treasury Bond,
7.5%, 11-15-16		500		628,047
United States Treasury Notes:
3.0%, 2-15-08		900		874,652
4.0%, 3-15-10		800		788,531
4.25%, 10-15-10	2,000			1,989,532
3.875%, 2-15-13	1,250			1,211,573
3.625%, 5-15-13		750		715,342
4.25%, 8-15-13		900		891,949
4.25%, 8-15-15	3,000			2,961,210
				10,060,836
TOTAL UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS - 16.54%			$	16,172,059
(Cost: $16,298,748)
SHORT-TERM SECURITY - 1.80%
Forest and Paper Products
Sonoco Products Co.,
4.27%, 1-3-06	1,765		$	1,764,581
(Cost: $1,764,581)
TOTAL INVESTMENT SECURITIES - 100.00%			$	97,784,509
(Cost: $86,576,722)

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

(A)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. At December 31, 2005, the total value of these securities amounted to $1,749,396 or 1.79% of total investments.

The Investments of Ivy Bond Fund
December 31, 2005
PREFERRED STOCKS	Shares			Value
Real Estate Investment Trust
PS Business Parks, Inc., 7.0% Cumulative	10,500		$	254,100
Public Storage, Inc., 6.25% Cumulative	10,500			238,455
TOTAL PREFERRED STOCKS - 0.85%			$	492,555
(Cost: $520,050)
CORPORATE DEBT SECURITIES	Principal Amount in Thousands
Broadcasting - 1.05%
Comcast Corporation,
6.5%, 11-15-35	$	280		285,336
Cox Communications, Inc.,
7.75%, 11-1-10		300		324,921
				610,257
Business Equipment and Services - 1.98%
HSBC Finance Corporation:
4.625%, 9-15-10		225		220,372
5.25%, 1-14-11		175		175,090
International Lease Finance Corporation:
4.875%, 9-1-10		500		493,217
5.875%, 5-1-13		250		258,710
				1,147,389
Chemicals -- Specialty - 0.45%
National Collegiate Trust 1997-S2 (The),
7.24%, 9-20-14		267		260,593
Finance Companies - 6.97%
BSkyB Finance UK plc,
6.5%, 10-15-35 (A)		275		274,031
Block Financial Corporation,
5.125%, 10-30-14		80		75,088
Caithness Coso Funding Corp.,
5.489%, 6-15-19 (A)		250		248,458
Capital One Financial Corporation,
5.5%, 6-1-15		450		447,367
Colonial Realty Limited Partnership,
5.5%, 10-1-15		370		360,646
ERAC USA Finance Company,
5.9%, 11-15-15 (A)		520		528,943
FBG Finance Limited,
5.875%, 6-15-35 (A)		240		233,733
Ford Motor Credit Company,
5.29%, 11-16-06		350		339,836
Fund American Companies, Inc.,
5.875%, 5-15-13		275		277,492
General Motors Acceptance Corporation,
5.05%, 1-16-07		550		522,552
JPMorgan Chase Capital XV,
5.875%, 3-15-35		340		338,039
St. George Funding Company LLC,
8.485%, 12-29-49 (A)		200		217,745
Selkirk Cogen Funding Corporation,
8.65%, 12-26-07		182		187,050
				4,050,980
Finance Companies -- Mortgage Related - 23.63%
ABFS Mortgage Loan Trust 2002-4,
7.423%, 12-15-33		120		120,911
Asset Securitization Corporation:
1.65786%, 10-13-26 (Interest Only) (A)		2,100		67,317
7.35751%, 11-13-29		200		207,658
Associates Manufactured Housing Contract Pass-Through       Certificates:
6.9%, 6-15-27		63		62,797
7.725%, 6-15-28		200		205,967
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2002-2,
6.2%, 7-11-43 (A)		275		283,295
Banco Hipotecario Nacional,
7.916%, 7-25-09 (A)		7		184
Bank of America Mortgage Securities, Inc.,
5.75%, 8-25-34		115		114,448
Bear Stearns Commercial Mortgage Securities Inc.:
5.426%, 5-14-16 (A)		200		201,514
6.0%, 7-15-31 (A)		100		101,731
5.468%, 6-11-41		1,500		1,525,995
BlackRock Capital Finance,
7.75%, 9-25-26 (A)		158		159,505
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35		370		359,058
Charlie Mac Trust 2004-2,
5.0%, 10-25-34		232		223,970
Chase Mortgage Finance Trust, Series 2003-S11,
5.5%, 10-25-33		140		137,572
Citibank Credit Card Issuance Trust, Class 2005-C1,
5.5%, 3-24-17		200		201,454
CountryPlace Manufactured Housing Contract Trust 2005-1,
5.2%, 12-15-35 (A)		300		288,914
Credit Suisse First Boston Mortgage Securities Corp.,
6.0%, 11-25-18		72		72,715
FFCA Secured Lending Corporation,
6.73%, 10-18-25 (A)		129		130,124
First Union National Bank-Chase Manhattan Bank       Commercial Mortgage Trust Commercial Mortgage       Pass-through Certificates,
7.062%, 6-15-31		169		178,099
GS Mortgage Securities Corporation II,
7.08315%, 7-13-30		500		513,605
GS Mortgage Securities Corporation II, Commercial       Mortgage Pass-Through Certificates, Series 2001-LI B,
6.733%, 2-14-16 (A)		225		236,164
Global Mortgage Securitization 2005-A Ltd. and Global       Mortgage Securitization 2005-A LLC,
5.25%, 4-25-32		213		202,639
Global Mortgage Securitization Ltd. and Global Mortgage       Securitization, LLC:
5.25%, 11-25-32 (A)		330		319,648
5.25%, 11-25-32 (A)		283		275,556
Green Tree Financial Corporation:
6.4%, 10-15-18		103		103,697
7.35%, 5-15-27		55		57,419
Hilton Hotel Pool Trust:
4.81125%, 10-3-15 (A)		790		794,239
7.653%, 10-3-15 (A)		430		453,063
Home Equity Loan Trust 2003-HS2,
5.09%, 7-25-33		200		197,744
J.P. Morgan Mortgage Trust 2005-S2,
5.66512%, 9-25-35		527		516,569
LB-UBS Commercial Mortgage Trust 2005-C1,
4.742%, 2-15-30		250		242,760
Lehman XS Trust, Series 2005-8,
5.69%, 12-25-35		585		586,486
MASTR Asset Securitization Trust 2003-10,
5.5%, 11-25-33		207		203,356
MMCA Auto Owner Trust 2002-3,
4.6%, 8-17-09		500		497,194
MMCA Auto Owner Trust 2002-4, Class C Asset Backed Notes,
4.56%, 11-16-09		89		89,073
MMCA Automobile Trust 2002-1,
5.37%, 1-15-10		268		267,772
Mellon Residential Funding,
6.75%, 6-26-28		82		81,386
Meristar Commerical Mortgage Trust 1999-C1,
8.29%, 3-3-16 (A)		200		223,419
Metropolitan Asset Funding, Inc.,
7.525%, 4-20-27 (A)		166		165,159
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4:
1.0668%, 11-28-35 (Interest Only) (A)		6,523		214,669
5.88%, 11-28-35 (A)		155		150,465
5.88%, 11-28-35 (A)		105		104,300
Nomura Asset Securities Corporation, Commercial Mortgage       Pass-Through Certificates, Series1998-D6,
6.0%, 3-15-30 (A)		300		309,021
Origen Manufactured Housing Contract Trust 2004-A,
5.7%, 1-15-35		100		99,866
Origen Manufactured Housing Contract Trust 2004-B,
5.73%, 11-15-35		50		49,186
Origen Manufactured Housing Contract Trust 2005-A,
4.49%, 5-15-18		200		197,123
Origen Manufactured Housing Contract Trust 2005-A,
5.86%, 6-15-36		120		117,469
Origen Manufactured Housing Contract Trust 2005-B,
5.605%, 5-15-22		80		80,425
Paine Webber Mortgage Acceptance Corporation,
7.655%, 1-2-12 (A)		250		256,044
RALI Series 2003-QS10 Trust,
5.75%, 5-25-33		250		244,961
RAMP Series 2003-RS7 Trust,
5.92%, 8-25-33		200		200,791
RAMP Series 2003-RS8 Trust,
5.683%, 9-25-33		200		200,037
Sequoia Mortgage Funding Company,
6.38%, 8-28-31 (A)		8		7,986
Structured Asset Securities Corporation,
5.63%, 5-25-34		250		247,823
Vanderbilt Mortgage and Finance, Inc.:
8.75%, 1-7-16		255		259,776
5.38125%, 3-7-28		147		146,426
WFS Financial 2005-2 Owner Trust,
4.39%, 11-19-12		175		173,650
				13,730,194
Health Care -- Drugs - 0.78%
AmerisourceBergen Corporation:
5.625%, 9-15-12 (A)		150		150,000
5.875%, 9-15-15 (A)		125		126,094
Cardinal Health, Inc.,
5.85%, 12-15-17		175		178,004
				454,098
Health Care -- General - 0.36%
Boston Scientific Corporation,
6.25%, 11-15-35		200		210,338
Hospital Supply and Management - 0.50%
Laboratory Corporation of America Holdings,
5.625%, 12-15-15		285		288,779
Insurance -- Life - 0.83%
StanCorp Financial Group, Inc.,
6.875%, 10-1-12		450		484,038
Insurance -- Property and Casualty - 1.80%
American General Finance Corporation,
4.875%, 5-15-10		520		515,534
Assurant, Inc.,
6.75%, 2-15-34		200		217,358
Berkshire Hathaway Finance Corporation,
4.75%, 5-15-12		315		311,390
				1,044,282
Multiple Industry - 0.42%
Pennsylvania Electric Company,
5.125%, 4-1-14		250		246,336
Petroleum -- Canada - 0.43%
Canadian Natural Resources Limited,
5.85%, 2-1-35		250		252,226
Petroleum -- Domestic - 0.76%
Valero Logistics Operations, L.P.,
6.05%, 3-15-13		425		439,045
Petroleum -- International - 0.72%
Husky Energy, Inc.,
6.25%, 6-15-12		400		419,479
Petroleum -- Services - 0.69%
Energy Transfer Partners, L.P.,
5.95%, 2-1-15		400		398,594
Railroad - 0.86%
Norfolk Southern Corproation,
5.59%, 5-17-25		200		199,807
Union Pacific Corporation,
5.214%, 9-30-14 (A)		300		299,643
				499,450
Real Estate Investment Trust - 4.08%
Arden Realty Limited Partnership,
5.25%, 3-1-15		300		303,129
Brandywine Operating Partnership, L.P.,
5.625%, 12-15-10		420		420,313
Healthcare Realty Trust Incorporated,
5.125%, 4-1-14		450		425,981
Nationwide Health Properties, Inc.,
6.0%, 5-20-15		265		261,180
Simon Property Group, L.P.,
5.75%, 12-1-15 (A)		550		558,118
Vornado Realty L.P.,
5.625%, 6-15-07		400		402,798
				2,371,519
Security and Commodity Brokers - 2.84%
Ameriprise Financial, Inc.,
5.65%, 11-15-15		150		152,429
Credit Suisse First Boston (USA), Inc.,
5.125%, 8-15-15		200		198,067
Goldman Sachs Group, Inc. (The),
4.5%, 6-15-10		525		513,058
Morgan Stanley Dean Witter & Co.,
6.75%, 4-15-11		500		538,264
Nuveen Investments, Inc.,
5.5%, 9-15-15		250		245,744
				1,647,562
Textile - 0.35%
Mohawk Industries, Inc.,
6.5%, 4-15-07		200		203,168
Utilities -- Electric - 0.86%
Oncor Electric Delivery Company,
7.0%, 9-1-22		450		500,165
Utilities -- Gas and Pipeline - 0.63%
Kinder Morgan Finance Company, ULC,
5.7%, 1-5-16 (A)		365		368,155
TOTAL CORPORATE DEBT SECURITIES - 50.99%			$	29,626,647
(Cost: $29,985,077)
MUNICIPAL OBLIGATION - TAXABLE - 0.22%
Minnesota
City of Eden Prairie, Minnesota, Taxable Multifamily       Housing Revenue Refunding Bonds (GNMA       Collateralized Mortgage Loan - Parkway Apartments       Project), Series 2000B,
7.35%, 2-20-09		125	$	128,161
(Cost: $125,000)
UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations - 3.93%
Federal Home Loan Bank,
3.25%, 8-11-06		1,225		1,214,904
Federal National Mortgage Association:
4.25%, 5-15-09		500		492,589
5.125%, 1-2-14		575		575,933
				2,283,426
Mortgage-Backed Obligations - 28.87%
Federal Home Loan Mortgage Corporation Agency       REMIC/CMO,
4.5%, 8-15-34		1,560		1,520,201
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates:
3.5%, 2-15-30		125		116,143
6.5%, 9-1-32		270		279,413
5.5%, 5-1-34		228		227,509
5.5%, 5-1-34		170		169,643
5.5%, 6-1-34		1,832		1,816,554
5.0%, 9-1-34		45		43,482
5.5%, 9-1-34		179		177,810
5.5%, 10-1-34		437		433,686
5.5%, 1-1-35		380		376,438
5.5%, 7-1-35		279		276,273
5.5%, 10-1-35		668		662,200
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
6.23%, 1-1-08		142		143,653
5.5%, 1-1-17		244		245,310
6.0%, 9-1-17		130		133,221
5.5%, 3-1-18		138		139,289
5.0%, 6-1-18		524		518,695
5.0%, 7-1-18		183		181,192
7.5%, 5-1-31		157		166,210
7.0%, 9-1-31		56		58,835
7.0%, 11-1-31		108		113,179
6.5%, 12-1-31		66		67,804
7.0%, 2-1-32		114		119,228
7.0%, 3-1-32		118		123,661
6.5%, 4-1-32		31		31,534
6.5%, 5-1-32		32		32,593
6.5%, 7-1-32		88		90,658
6.5%, 8-1-32		75		77,861
6.5%, 8-1-32		66		68,153
6.5%, 9-1-32		112		115,543
6.5%, 9-1-32		48		50,060
6.0%, 10-1-32		155		157,509
6.5%, 10-1-32		153		158,478
6.0%, 11-1-32		163		165,725
6.0%, 3-1-33		121		122,937
5.5%, 4-1-33		192		190,627
6.0%, 4-1-33		281		283,857
5.5%, 5-1-33		147		146,194
5.5%, 1-1-34		146		145,341
5.5%, 1-1-34		143		142,009
5.5%, 3-1-34		201		199,621
5.5%, 3-1-34		81		80,214
5.5%, 4-1-34		205		203,640
5.5%, 4-1-34		64		63,227
5.0%, 5-1-34		80		78,030
5.5%, 5-1-34		180		178,460
5.5%, 11-1-34		1,624		1,609,672
6.0%, 11-1-34		1,178		1,189,454
5.5%, 2-1-35		235		233,426
4.5%, 3-1-35		550		517,853
5.0%, 5-1-35		58		56,615
5.0%, 7-1-35		229		221,567
5.0%, 7-1-35		109		105,897
5.0%, 7-1-35		96		92,980
4.5%, 9-1-35		461		434,220
5.5%, 10-1-35		1,122		1,113,362
Government National Mortgage Association Agency       REMIC/CMO (Interest Only)
0.97748%, 6-17-45		5,212		308,094
				16,775,040
Treasury Inflation Protected Obligation - 2.03%
United States Treasury Notes,
1.875%, 7-15-13 (B)		1,100		1,176,738
Treasury Obligations - 11.90%
United States Treasury Bonds,
5.375%, 2-15-31		420		471,778
United States Treasury Notes:
1.875%, 1-31-06		575		574,102
2.5%, 10-31-06		550		541,513
2.25%, 2-15-07		100		97,613
3.625%, 6-30-07		500		494,297
4.125%, 8-15-08		750		745,869
3.375%, 10-15-09		3,790		3,659,867
4.25%, 11-15-14		335		331,100
				6,916,139
TOTAL UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS- 46.73%			$	27,151,343
(Cost: $27,364,855)
SHORT-TERM SECURITY - 1.21%
United States Government Agency Obligation
Federal Home Loan Bank,
3.3%, 1-3-06		701	$	700,871
(Cost: $700,871)
TOTAL INVESTMENT SECURITIES - 100.00%			$	58,099,577
(Cost: $58,695,853)

Notes to Schedule of Investments

Certain acronyms are used within the body of the Fund's holdings. The definitions of these acronyms are as follows: REMIC - Real Estate Mortgage Investment Conduit; CMO - Collateralized Mortgage Obligation.

(A)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. At December 31, 2005, the total value of these securities amounted to $7,747,237 or 13.33% of total investments.

(B)The interest rate for this security is a stated rate, but the interest payments are determined by multiplying the inflation-adjusted principal by one half of the stated rate for each semiannual interest payment date.

The Investments of Ivy Cash Reserves Portfolio
December 31, 2005
CORPORATE OBLIGATIONS	Principal Amount in Thousands			Value
Certificate of Deposit - 6.41%
Banks
Citibank, N.A.,
4.31%, 2-22-06	$	125	$	125,000
Royal Bank of Scotland plc (The):
4.34%, 10-3-06		100		100,000
4.725%, 11-27-06		100		99,949
				324,949
Commercial Paper
Finance Companies - 5.06%
PACCAR Financial Corp.,
3.49%, 1-19-06		257		256,551
Security and Commodity Brokers - 3.39%
Greenwich Capital Holdings Inc. (Royal Bank of             Scotland PLC (The)),
4.2%, 1-3-06		172		171,960
Total Commercial Paper - 8.45%				428,511
Notes
Apparel - 3.97%
NIKE, Inc.,
5.5%, 8-15-06		200		201,005
Banks - 5.11%
Bank of New York Company Inc. (The),
2.2%, 5-12-06		160		159,125
Wells Fargo & Company,
4.11%, 1-15-06		100		100,000
				259,125
Business Equipment and Services - 3.16%
Berkeley Hills Country Club, Inc., Incremental Taxable             Variable Rate Demand Bonds, Series 2000             (Wachovia Bank, N.A.),
4.5%, 1-5-06		160		160,000
Computers -- Main and Mini - 1.97%
International Business Machines Corporation,
4.32938%, 1-9-06		100		100,000
Finance Companies - 5.42%
Caterpillar Financial Services Corp.,
2.65%, 1-30-06		150		149,879
Park Street Properties I, LLC, Taxable Variable Rate             Demand Notes, Series 2004 (University of Wisconsin -             Madison Projects), (U.S. Bank, National Association),
4.33%, 1-5-06		125		125,000
				274,879
Health Care -- Drugs - 8.19%
Lilly (Eli) and Company,
4.26063%, 1-3-06		250		250,000
Pfizer Investment Capital p.l.c. (Pfizer Inc.), Extendible             Liquidity Securities,
4.32938%, 1-17-06		165		165,000
				415,000
Multiple Industry - 6.92%
3M Company,
5.6736%, 12-12-06 (A)		100		100,798
The Salvation Army, Taxable Multi-Modal Revenue Bonds,             Series 2005A (The Bank of New York),
4.37%, 1-5-06		250		250,000
				350,798
Retail -- General Merchandise - 4.97%
Wal-Mart Stores, Inc.,
5.586%, 6-1-06		250		251,800
Retail -- Specialty Stores - 2.57%
El Dorado Enterprises of Miami, Inc., Taxable Variable Rate             Demand Bonds, Series 1999 (Wachovia Bank, N.A.),
4.5%, 1-5-06		130		130,000
Total Notes - 42.28%				2,142,607
TOTAL CORPORATE OBLIGATIONS - 57.14%			$	2,896,067
(Cost: $2,896,067)
MUNICIPAL OBLIGATIONS - TAXABLE
California - 10.85%
County of Sacramento, Taxable Pension Funding Bonds,       Series 1995B (Bayerische Landesbank Girozentrale,       New York Branch),
4.45%, 1-4-06		300		300,000
California Pollution Control Financing Authority,       Environmental Revenue Bonds (Air Products and Chemicals,       Inc./Wilmington Facility) Taxable Series 1997A,
4.15%, 1-4-06		250		250,000
				550,000
Florida - 2.66%
University of South Florida Research Foundation, Incorporated,       Variable Rate Demand Revenue Bonds (Interdisciplinary       Research Building Project), Taxable Series 2004B       (Bank of America, N.A.),
4.35%, 1-4-06		135		135,000
Maryland - 5.53%
Mayor and City Council of Baltimore (City of Baltimore,       Maryland), General Obligation Bonds, Consolidated Public       Improvement Refunding Bonds, Series 2003C (Variable Rate       Demand/Taxable), (Financial Security Assurance Inc.),
4.44%, 1-5-06		280		280,000
New York - 3.36%
City of New York (The), General Obligation Bonds,       Fiscal 1995 Series B, Taxable Adjustable Rate Bonds       (Bayerische Landesbank Girozentrale),
4.2%, 1-4-06		100		100,000
Nassau County Industrial Development Agency, Taxable       Variable Rate Demand Revenue Bonds (57 Seaview Realty       Associates, LLC 2004 Project), (Wachovia Bank, N.A.),
4.4%, 1-5-06		70		70,000
				170,000
Texas - 1.97%
Gulf Coast Waste Disposal Authority, Pollution Control Revenue       Bonds (Amoco Oil Company Project), Taxable Series 1995,
4.33%, 1-12-06		100		100,000
Washington - 1.97%
Washington State Housing Finance Commission, Taxable       Variable Rate Demand Multifamily Revenue Bonds       (Columbia Heights Retirement Project), Series 2004 B       (Wells Fargo Bank, N.A.),
4.57%, 1-3-06		100		100,000
TOTAL MUNICIPAL OBLIGATIONS - TAXABLE - 26.34%			$	1,335,000
(Cost: $1,335,000)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Federal Home Loan Bank,
3.7%, 1-13-06		100		100,000
Federal National Mortgage Association,
4.05%, 8-14-06		170		170,000
Overseas Private Investment Corporation:
4.35%, 1-4-06		195		195,000
4.37%, 1-4-06		372		372,093
TOTAL UNITED STATES GOVERNMENT AGENCY       OBLIGATIONS - 16.52%			$	837,093
(Cost: $837,093)
TOTAL INVESTMENT SECURITIES - 100.00%			$	5,068,160
(Cost: $5,068,160)

Notes to Schedule of Investments

(A)Security was 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. At December 31, 2005, the total value of this security amounted to 1.99% of total investments.

The Investments of Ivy Cundill Global Value Fund
December 31, 2005
COMMON STOCKS		Shares		Value
Bermuda - 1.11%
Guoco Group Limited (A)		800,000	$	8,852,605
Canada - 7.99%
BCE Inc. (A)		932,700		22,361,692
Fairfax Financial Holdings Limited (A)		187,000		27,025,678
Legacy Hotels Real Estate Investment Trust (A)		1,371,200		9,436,621
Legacy Hotels Real Estate Investment Trust (A)(B)		753,900		5,188,352
				64,012,343
Germany - 2.27%
Henkel Kommanditgesellschaft auf Aktien (A)		86,525		8,005,409
Munchener Ruckversicherungs-Gesellschaft       Aktiengesellschaft, Registered Shares (A)		75,184		10,180,063
				18,185,472
Hong Kong - 3.19%
CITIC Pacific Limited (A)		2,000,000		5,532,878
First Pacific Company Limited (A)	51,724,000			20,012,768
				25,545,646
Italy - 3.42%
Italmobiliare S.p.A., Non-Convertible Savings Shares (A)		521,786		27,365,859
Japan - 37.01%
AIFUL Corporation (A)		47,550		3,971,404
Asatsu-DK Inc. (A)		776,800		24,700,047
Coca-Cola West Japan Company Limited (A)		1,132,500		26,455,569
Kirin Brewery Company, Limited (A)		3,000,000		34,976,894
Lion Corporation (A)		2,500,000		16,004,579
Mabuchi Motor Co., Ltd. (A)		485,600		26,969,771
Nikko Cordial Corporation (A)		3,050,000		48,309,662
Nintendo Co., Ltd. (A)		160,300		19,368,932
Nippon Television Network Corporation (A)		180,000		27,671,175
NIPPONKOA Insurance Company, Limited (A)		1,900,000		15,240,599
TV Asahi Corporation (A)		6,612		16,426,981
Takefuji Corporation (A)		534,610		36,310,053
				296,405,666
Malaysia - 1.87%
AmcorpGroup Berhad (A)*	57,618,800			14,940,184
Singapore - 3.10%
Singapore Press Holdings Limited (A)		9,615,000		24,866,629
South Korea - 8.02%
Dongwon Financial Holding Co., Ltd. (A)		371,000		15,781,768
Korea Electric Power Corporation (A)		545,170		20,386,235
Korea Tobacco & Ginseng Corporation (A)		630,000		28,076,866
				64,244,869
United States - 11.17%
DIRECTV Group, Inc. (The)*		2,200,000		31,064,000
Liberty Global, Inc., Series A*		293,751		6,604,991
Liberty Global, Inc., Series C*		293,751		6,220,177
Liberty Media Corporation, Class A*		3,539,100		27,852,717
MCI, Inc.		900,000		17,743,500
				89,485,385
TOTAL COMMON STOCKS - 79.15%			$	633,904,658
(Cost: $540,995,423)

UNREALIZED GAIN (LOSS) ON OPEN FORWARD       CURRENCY CONTRACTS - 1.33%		Face Amount in Thousands
Euro, 1-27-06 (C)	EUR 16,737			326,524
Euro, 3-17-06 (C)		17,906		172,379
Japanese Yen, 1-27-06 (C)	JPY11,657,211			6,216,778
Japanese Yen, 3-17-06 (C)		16,617,518		5,653,737
Malaysian Ringgit, 3-17-06 (C)	MYR 50,511			(21,836	)
Singapore Dollar, 1-27-06 (C)	SGD 19,942			(119,108	)
Singapore Dollar, 3-17-06 (C)		14,496		(141,738	)
South Korean Won, 1-27-06 (C)	KWD 25,522,840			(689,567	)
South Korean Won, 3-17-06 (C)		31,490,060		(749,962	)
			$	10,647,207

SHORT-TERM SECURITIES	Principal Amount in Thousands
Repurchase Agreement - 3.95%
J.P. Morgan Securities Inc., 2.5% Repurchase       Agreement dated 12-30-05 to be repurchased       at $31,688,800 on 1-3-06 (D)	$	31,680		31,680,000
United States Government Obligations
Treasury Obligations - 15.57%
United States Treasury Bills:
3.51%, 1-5-06		25,000		24,990,250
3.43%, 1-5-06		10,000		9,996,189
3.525%, 1-12-06		25,000		24,973,073
3.56%, 1-19-06		20,000		19,964,400
3.45%, 1-19-06		5,000		4,991,375
3.49%, 1-26-06		20,000		19,951,528
3.575%, 2-2-06		10,000		9,968,222
4.01%, 4-27-06		10,000		9,870,789
				124,705,826
TOTAL SHORT-TERM SECURITIES - 19.52%			$	156,385,826
(Cost: $156,385,826)
TOTAL INVESTMENT SECURITIES - 100.00%			$	800,937,691
(Cost: $697,381,249)

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

(A)Listed on an exchange outside the United States.

(B)Security was 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. At December 31, 2005, the total value of this security amounted to 0.65% of total investments.

(C)Principal amounts are denominated in the indicated foreign currency, where applicable (EUR - Euro, JPY - Japanese Yen, KRW - Korean Won, MYR - Malaysian Ringgit, SGD - Singapore Dollar).

(D)Collateralized by $32,956,000 United States Treasury Bill, 2.5% due 6-22-06; market value and accrued interest aggregate $32,233,800.

The Investments of Ivy Dividend Income Fund
December 31, 2005
COMMON STOCKS	Shares			Value
Aircraft - 2.49%
Boeing Company (The)		16,650	$	1,169,496
Goodrich Corporation		17,450		717,195
				1,886,691
Aluminum - 0.83%
Alcoa Incorporated		21,400		632,798
Banks - 1.69%
Bank of America Corporation		27,700		1,278,355
Beverages - 1.33%
Diageo plc, ADR		17,300		1,008,590
Business Equipment and Services - 1.05%
Genuine Parts Company		18,100		794,952
Capital Equipment - 3.68%
Caterpillar Inc.		21,850		1,262,275
Deere & Company		22,400		1,525,664
				2,787,939
Chemicals -- Petroleum and Inorganic - 1.22%
Dow Chemical Company (The)		10,500		460,110
du Pont (E.I.) de Nemours and Company		10,900		463,250
				923,360
Chemicals -- Specialty - 1.15%
Air Products and Chemicals, Inc.		14,700		870,093
Computers -- Peripherals - 3.01%
Microsoft Corporation		47,350		1,236,545
SAP Aktiengesellschaft, ADR		23,150		1,043,370
				2,279,915
Electrical Equipment - 0.58%
Emerson Electric Co.		5,850		436,995
Electronic Components - 1.07%
Microchip Technology Incorporated		11,200		360,416
Texas Instruments Incorporated		14,050		450,583
				810,999
Finance Companies - 3.04%
SLM Corporation		41,755		2,300,283
Food and Related - 0.88%
Campbell Soup Company		22,500		669,825
Health Care -- Drugs - 1.25%
Pfizer Inc.		40,600		946,792
Health Care -- General - 1.10%
Johnson & Johnson		13,900		835,390
Hospital Supply and Management - 3.01%
Medtronic, Inc.		31,500		1,813,455
UnitedHealth Group Incorporated		7,460		463,564
				2,277,019
Hotels and Gaming - 4.25%
Harrah's Entertainment, Inc.		15,650		1,115,689
Starwood Hotels & Resorts Worldwide, Inc.		32,950		2,104,187
				3,219,876
Household -- General Products - 2.67%
Colgate-Palmolive Company		23,050		1,264,293
Procter & Gamble Company (The)		13,100		758,228
				2,022,521
Insurance -- Property and Casualty - 2.45%
Allstate Corporation (The)		19,100		1,032,737
St. Paul Companies, Inc. (The)		18,450		824,161
				1,856,898
Metal Fabrication - 0.91%
Loews Corporation, Carolina Group		15,750		692,842
Mining - 1.41%
Freeport-McMoRan Copper & Gold Inc., Class B		19,900		1,070,620
Multiple Industry - 5.08%
3M Company		9,700		751,750
General Electric Company		53,900		1,889,195
NRG Energy, Inc.*		13,300		626,696
Valor Communications Group, Inc.		50,900		580,260
				3,847,901
Non-Residential Construction - 2.56%
Fluor Corporation		25,100		1,939,226
Petroleum -- International - 9.15%
Anadarko Petroleum Corporation		17,850		1,691,288
BP p.l.c., ADR		11,000		706,420
Burlington Resources Inc.		23,800		2,051,560
Exxon Mobil Corporation		37,550		2,109,184
Marathon Oil Corporation		6,100		371,917
				6,930,369
Petroleum -- Services - 12.20%
BJ Services Company		24,450		896,581
Baker Hughes Incorporated		30,650		1,862,907
Grant Prideco, Inc.*		10,200		450,024
National Oilwell Varco, Inc.*		15,650		981,255
Patterson-UTI Energy, Inc.		44,200		1,453,517
Schlumberger Limited		19,700		1,913,855
Transocean Inc.*		14,100		982,629
Weatherford International Ltd.*		19,450		704,090
				9,244,858
Railroad - 1.26%
Union Pacific Corporation		11,900		958,069
Real Estate Investment Trust - 2.23%
ProLogis		15,050		703,136
Simon Property Group, Inc.		12,900		988,527
				1,691,663
Retail -- General Merchandise - 0.58%
Federated Department Stores, Inc.		6,581		436,518
Savings and Loans - 0.43%
Capitol Federal Financial		10,000		328,650
Security and Commodity Brokers - 6.96%
Alliance Capital Management L.P.		20,050		1,132,624
Chicago Mercantile Exchange Holdings Inc.		4,050		1,488,335
Franklin Resources, Inc.		5,800		545,258
Marsh & McLennan Companies, Inc.		30,100		955,976
Morgan (J.P.) Chase & Co.		28,952		1,149,105
				5,271,298
Tobacco - 4.03%
Altria Group, Inc.		27,100		2,024,912
Reynolds American Inc.		10,800		1,029,564
				3,054,476
Trucking and Shipping - 1.77%
United Parcel Service, Inc., Class B		17,800		1,337,670
Utilities -- Electric - 1.62%
Dominion Resources, Inc.		10,300		795,160
NiSource Inc.		20,750		432,845
				1,228,005
Utilities -- Gas and Pipeline - 2.68%
Enbridge Inc.		23,000		719,210
Kinder Morgan, Inc.		14,250		1,310,288
				2,029,498
Utilities -- Telephone - 1.57%
BellSouth Corporation		22,050		597,555
Iowa Telecommunications Services, Inc.		38,450		595,590
				1,193,145
TOTAL COMMON STOCKS - 91.19%			$	69,094,099
(Cost: $56,703,722)
SHORT-TERM SECURITIES	Principal Amount in Thousands
Commercial Paper
Finance Companies - 1.32%
Preferred Receivables Funding Corp.,
4.35%, 1-12-06	$	1,000		998,671
Household -- General Products - 2.64%
Fortune Brands Inc.,
4.3%, 1-3-06		2,000		1,999,522
Security and Commodity Brokers - 2.21%
Greenwich Capital Holdings Inc. (Royal Bank of             Scotland PLC (The)),
4.2%, 1-3-06		1,678		1,677,608
Total Commercial Paper - 6.17%				4,675,801
Municipal Obligation - Taxable - 1.32%
California
County of Sacramento, Taxable Pension Funding Bonds,             Series 1995B (Bayerische Landesbank Girozentrale,             New York Branch),
4.45%, 1-4-06		1,000		1,000,000
United States Government Agency Obligation - 1.32%
Federal Home Loan Bank,
3.3%, 1-3-06		1,000		999,817
TOTAL SHORT-TERM SECURITIES - 8.81%			$	6,675,618
(Cost: $6,675,618)
TOTAL INVESTMENT SECURITIES - 100.00%			$	75,769,717
(Cost: $63,379,340)

Notes to Schedule of Investments

Certain acronyms are used within the body of the Fund's holdings. The definition of this acronym is as follows: ADR - American Depositary Receipts.

*No dividends were paid during the preceding 12 months.

The Investments of Ivy European Opportunities Fund
December 31, 2005
COMMON STOCKS	Shares			Value
Argentina - 1.40%
NDS Group plc, ADR*		100,000	$	4,104,500
Austria - 7.10%
AGRANA Beteiligungs-AG (A)		17,160		1,472,883
Andritz AG (A)		20,000		2,198,492
OMV Aktiengesellschaft (A)		180,000		10,548,498
Telekom Austria Aktiengesellschaft (A)		138,000		3,104,171
Wienerberger AG (A)		86,000		3,441,344
				20,765,388
France - 10.90%
Bouygues SA (A)		87,000		4,253,851
France Telecom (A)		290,000		7,206,483
Iliad SA (A)		119,595		7,405,044
Technip-Coflexip (A)		100,000		6,014,183
Total S.A. (A)		27,800		6,983,982
				31,863,543
Germany - 13.20%
Commerzbank Aktiengesellschaft (A)		262,000		8,132,928
Deutsche Post AG (A)		320,000		7,773,924
Deutsche Telekom AG, Registered Shares (A)		390,000		6,491,766
Hypo Real Estate Holding AG (A)		35,000		1,820,711
Pfleiderer Ag, Registered Shares (A)*		427,086		8,140,557
Siemens AG (A)		73,000		6,254,525
				38,614,411
Greece - 1.66%
Coca-Cola Hellenic Bottling Company S.A. (A)		165,000		4,860,123
Hungary - 0.72%
MOL Magyar Olaj-es Gazipari Rt. (A)		7,778		727,639
National Savings and Commercial Bank Ltd. (A)		42,500		1,388,481
				2,116,120
Italy - 8.19%
AZIMUT HOLDING S.P.A. (A)		567,000		4,457,220
ENEL S.p.A. (A)	1,226,792			9,636,621
Eni S.p.A. (A)		125,000		3,467,330
Geox S.p.A. (A)(B)		200,000		2,200,859
UniCredito Italiano S.p.A. (A)		610,000		4,203,062
				23,965,092
Netherlands - 2.17%
Aalberts Industries N.V. (A)		74,000		3,929,227
Pyaterochka Holding N.V., GDR*		167,160		2,415,462
				6,344,689
Norway - 3.02%
Statoil ASA (A)		385,000		8,841,658
Spain - 7.13%
Altadis, S.A. (A)		165,000		7,485,527
Banco Bilbao Vizcaya Argentaria, S.A. (A)		248,000		4,427,575
Cintra Concesiones de Intraestructuras de Transporte (A)		274,000		3,169,261
Telefonica, S.A. (A)		382,949		5,762,347
				20,844,710
Switzerland - 4.32%
austriamicrosystems AG (A)*		117,245		6,201,079
Credit Suisse Group, Registered Shares (A)		100,000		5,098,740
EFG International (A)(B)*		50,000		1,331,761
				12,631,580
United Kingdom - 33.94%
Admiral Group Plc (A)		650,000		5,088,347
Body Shop International PLC (The) (A)	1,100,000			4,977,376
British American Tobacco p.l.c. (A)		256,000		5,725,788
Center Parcs (UK) Group Plc (A)		155,000		185,340
Enterprise Inns plc (A)		160,000		2,582,110
Evolution Group Plc (The) (A)	2,300,000			5,619,118
Halfords Group Plc (A)	1,000,000			6,107,737
IP2IPO Group plc (A)*		323,941		2,864,712
iSOFT Group plc (A)		405,000		2,714,029
Imperial Tobacco Group PLC (A)		70,000		2,091,943
Interserve Plc (A)		333,000		2,073,981
Investec plc (A)		108,000		4,747,518
Kensington Group plc (A)		197,000		3,135,162
MFI Furniture Group Plc (A)	1,715,525			2,361,234
Man Group plc (A)		107,000		3,516,164
Millfield Group plc (A)*		416,894		164,970
Old Mutual plc (A)	1,500,000			4,251,759
Omega International Group PLC (A)		270,000		648,022
Peninsular and Oriental Steam Navigation Company (The) (A)		865,000		6,935,120
Persimmon plc (A)		100,000		2,164,376
Photo-Me International plc (A)		300,000		634,861
Premier Brands Foods plc (A)	1,016,000			5,226,571
Punch Taverns plc (A)		318,368		4,650,387
Regal Petroleum plc (A)*		900,461		1,804,857
Regal Petroleum plc (A)(B)*	1,050,000			2,104,589
Taylor Woodrow plc (A)		325,000		2,127,600
tesco plc (A)	1,700,000			9,695,817
Travis Perkins plc (A)		210,000		5,058,239
				99,257,727
TOTAL COMMON STOCKS - 93.75%			$	274,209,541
(Cost: $221,438,039)
SHORT-TERM SECURITIES	Principal Amount in Thousands
Banks - 1.71%
Rabobank USA Financial Corp. (Rabobank Nederland),
4.05%, 1-3-06	$	5,000		4,998,875
Finance Companies - 1.71%
Preferred Receivables Funding Corp.,
4.26%, 1-12-06		5,000		4,993,492
Security and Commodity Brokers - 2.83%
UBS Finance Delaware LLC (UBS AG),
4.1%, 1-3-06		8,290		8,288,112
TOTAL SHORT-TERM SECURITIES - 6.25%			$	18,280,479
(Cost: $18,280,479)
TOTAL INVESTMENT SECURITIES - 100.00%			$	292,490,020
(Cost: $239,718,518)

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

(A)Listed on an exchange outside the United States.

(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. At December 31, 2005, the total value of these securities amounted to $5,637,209 or 1.93% of total investments.

The Investments of Ivy Global Natural Resources Fund
December 31, 2005
COMMON STOCKS AND WARRANT			Shares		Value
Australia - 0.27%
Central Asia Gold Limited (A)*			2,710,964	$	1,152,697
Energy Resources of Australia Ltd (A)			741,500		5,359,835
					6,512,532
Bermuda - 2.97%
China Gas Holdings Limited (A)*	145,001,000				27,490,468
Tsakos Energy Navigation Limited			450,000		16,501,500
Weatherford International Ltd.*			800,000		28,960,000
					72,951,968
Brazil - 12.43%
Aracruz Celulose S.A., ADR			1,215,000		48,612,150
CPFL Energia S.A., ADR			174,800		6,091,780
Caemi Mineracao e Metalurgia S.A. (A)	17,000,000				24,791,515
Companhia Energetica de Minas Gerais - CEMIG, ADR			350,000		12,901,000
Companhia Siderurgica Nacional, ADR			1,050,000		22,470,000
Companhia Vale do Rio Doce, ADR			1,650,000		67,881,000
Klabin S.A. (A)*			3,500,000		6,211,778
Petroleo Brasileiro S.A. - Petrobras, ADR			650,000		46,325,500
Suzano Bahia Sul Papel E Celulose S.A. (A)	10,525,000				52,978,339
Votorantim Celulose e Papel S.A., ADR			1,400,000		17,206,000
					305,469,062
Canada - 15.62%
Agnico-Eagle Mines Limited (A)			500,000		9,901,501
Barrick Gold Corporation (A)			2,200,000		61,337,692
Cambior Inc. (A)*	15,000,000				41,937,288
Cambior Inc., Warrants (A)*			350,000		60,218
EnCana Corporation (A)			262,500		11,868,898
Ferus Gas Industries Trust (A)(B)(C)*			615,000		1,322,638
Glamis Gold Ltd. (A)*			1,507,200		41,451,403
Goldcorp Inc. (A)			650,000		14,482,343
Hydrogenics Corporation (A)*			1,650,000		5,010,538
IAMGOLD Corporation (A)			1,750,000		13,789,840
Inco Limited (A)			650,000		28,237,774
Placer Dome Inc. (A)			2,600,000		59,539,765
Potash Corporation of Saskatchewan Inc. (A)			200,000		16,017,893
Pure Energy Services Ltd. (A)(B)*			423,000		4,366,639
Savanna Energy Services Corp. (A)*			400,000		9,841,283
Trican Well Service Ltd. (A)*			500,000		24,087,057
Western Oil Sands Inc., Class A (A)*			990,600		23,698,728
ZENON Environmental Inc. (A)*			700,000		10,128,608
zed.i solutions inc. (A)*			4,000,000		5,092,692
zed.i solutions inc. (A)(B)*			1,300,000		1,655,125
					383,827,923
Cayman Islands - 1.48%
Apex Silver Mines Limited*			950,000		15,105,000
Noble Corporation			300,000		21,162,000
					36,267,000
China - 6.03%
Aluminum Corporation of China Limited, ADR			350,000		26,719,000
Aluminum Corporation of China Limited, H Shares (A)	22,662,000				17,244,240
China Petroleum & Chemical Corporation, H Shares (A)	105,000,000				52,136,736
China Shenhua Energy Company Limited, H Shares (A)*			689,000		759,765
China Shenhua Energy Company Limited, H Shares (A)(B)*			9,311,000		10,267,300
PetroChina Company Limited, ADR			450,000		36,882,000
Sinopec Zhenhai Refining & Chemical Company Limited,       H Shares (A)			3,119,400		4,103,600
					148,112,641
Mexico - 1.99%
Cemex, S.A. de C.V., ADR			825,000		48,947,250
Peru - 1.44%
Compania de Minas Buenaventura S.A.A., ADR			1,250,000		35,375,000
Russia - 0.74%
OAO LUKOIL, ADR			300,000		18,067,500
South Africa - 6.83%
AngloGold Ashanti Limited, ADR			950,000		46,863,500
Gold Fields Limited, ADR			3,250,000		57,297,500
Impala Platinum Holdings Limited (A)			382,500		56,339,787
Mvelaphanda Resources Limited (A)*			2,000,000		7,269,854
					167,770,641
South Korea - 1.45%
POSCO, ADR			250,000		12,377,500
S-Oil Corporation (A)			150,000		10,476,332
SK Corporation (A)			250,000		12,885,196
					35,739,028
Thailand - 2.81%
PTT Public Company Limited (A)			5,805,000		31,978,793
Thai Oil Public Company Limited (A)	24,000,000				37,148,080
					69,126,873
United Kingdom - 1.83%
Randgold Resources Limited, ADR*			2,000,000		32,220,000
Titanium Resources Group Ltd. (A)*	13,057,059				12,804,782
					45,024,782
United States - 38.23%
Air Products and Chemicals, Inc.			650,000		38,473,500
Airgas, Inc.			256,000		8,422,400
Amerada Hess Corporation			200,000		25,364,000
Arch Coal, Inc.			475,000		37,762,500
Atwood Oceanics, Inc.*			600,000		46,818,000
Aventine Renewable Energy Holdings, Inc. (B)(C)*			760,231		9,883,003
Bunge Limited			1,000,000		56,610,000
Century Aluminum Company*			640,000		16,764,800
ChevronTexaco Corporation			900,000		51,093,000
Compass Minerals International, Inc.			400,000		9,816,000
ConocoPhillips			250,000		14,545,000
Diamond Offshore Drilling, Inc.			770,000		53,561,200
Exxon Mobil Corporation			775,000		43,531,750
FMC Technologies, Inc.*			225,000		9,657,000
Grey Wolf, Inc.*			2,900,000		22,417,000
Huntsman Corporation*			1,500,000		25,830,000
Massey Energy Company			1,500,000		56,805,000
Nalco Holdings LLC*			1,500,000		26,565,000
Occidental Petroleum Corporation			585,000		46,729,800
Offshore Logistics, Inc.*			500,000		14,600,000
Patterson-UTI Energy, Inc.			700,000		23,019,500
Peabody Energy Corporation			300,000		24,726,000
Praxair, Inc.			800,000		42,368,000
Rohm and Haas Company			875,000		42,367,500
Sigma-Aldrich Corporation			175,000		11,068,750
Smith International, Inc.			1,300,000		48,243,000
streetTRACKS Gold Trust*			200,000		10,326,000
Transocean Inc.*			1,010,000		70,386,900
Valero Energy Corporation			1,000,000		51,600,000
					939,354,603
TOTAL COMMON STOCKS AND WARRANT - 94.12%				$	2,312,546,803
(Cost: $1,891,261,052)
UNREALIZED GAIN (LOSS) ON OPEN FORWARD       CURRENCY CONTRACTS - (0.05%)		Face Amount in Thousands
Brazilian Real, 3-22-06 (D)	BRL 5,000				3,069
Brazilian Real, 3-22-06 (D)			5,000		(2,113	)
Canadian Dollar, 1-18-06 (D)	CAD 142,000				580,320
Canadian Dollar, 2-15-06 (D)			63,000		(330,089	)
South African Rand, 1-18-06 (D)	ZAR 98,700				(535,217	)
South African Rand, 2-15-06 (D)			113,200		(870,784	)
South African Rand, 3-8-06 (D)			85,400		(64,383	)
South African Rand, 3-22-06 (D)			95,000		(109,564	)
				$	(1,328,761	)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Commercial Paper
Aircraft - 0.60%
United Technologies Corporation,
4.32%, 1-3-06	$	14,708		14,704,470
Banks - 0.81%
Rabobank USA Financial Corp. (Rabobank Nederland),
4.05%, 1-3-06		20,000		19,995,500
Finance Companies - 1.35%
PACCAR Financial Corp.,
4.24%, 1-31-06		6,200		6,178,094
Preferred Receivables Funding Corp.,
4.26%, 1-12-06		7,000		6,990,888
Prudential Funding LLC,
4.28%, 1-11-06		20,000		19,976,222
				33,145,204
Health Care -- Drugs - 0.77%
Cloverleaf International Holdings S.A.             (Merck & Co., Inc.),
4.23%, 1-9-06		18,885		18,867,248
Household -- General Products - 0.20%
Kimberly-Clark Worldwide Inc.,
4.12%, 1-3-06		5,000		4,998,856
Security and Commodity Brokers - 2.10%
Greenwich Capital Holdings Inc. (Royal Bank of             Scotland PLC (The)),
4.2%, 1-3-06		19,766		19,761,388
UBS Finance Delaware LLC (UBS AG):
4.1%, 1-3-06		21,710		21,705,055
4.33%, 1-10-06		10,000		9,989,175
				51,455,618
Total Commercial Paper - 5.83%				143,166,896
Municipal Obligation - Taxable - 0.10%
Kansas
City of Park City, Kansas, Taxable Industrial Revenue             Bonds (The Hayes Company, Inc.), Series 2001             (U.S. Bank, National Association),
4.35%, 1-3-06		2,595		2,595,000
TOTAL SHORT-TERM SECURITIES - 5.93%			$	145,761,896
(Cost: $145,761,896)
TOTAL INVESTMENT SECURITIES - 100.00%			$	2,456,979,938
(Cost: $2,037,022,948)

Notes to Schedule of Investments

Certain acronyms are used within the body of the Fund's holdings. The definition of this acronym is as follows: ADR - American Depositary Receipts.

*No dividends were paid during the preceding 12 months.

(A)Listed on an exchange outside the United States.

(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. At December 31, 2005, the total value of these securities amounted to $27,494,705 or 1.12% of total investments.

(C)Security valued in good faith by the Valuation Committee appointed by the Board of Directors.

(D)Principal amounts are denominated in the indicated foreign currency, were applicable (BRL - Brazilian Real, CAD - Canadian Dollar, ZAR - South African Rand).

The Investments of Ivy International Fund
December 31, 2005
COMMON STOCKS		Shares		Value
Australia - 1.19%
Westpac Banking Corporation (A)		107,000	$	1,784,549
Austria - 4.90%
OMV Aktiengesellschaft (A)		100,000		5,860,277
Raiffeisen International Bank-Holding AG (A)*		22,900		1,506,026
				7,366,303
Belgium - 0.62%
KBC Group NV (A)		10,000		931,133
Brazil - 1.11%
Companhia Vale do Rio Doce, ADR		40,500		1,666,170
Canada - 2.56%
EnCana Corporation (A)		57,300		2,590,811
Shoppers Drug Mart Corporation (A)(B)		33,350		1,261,760
				3,852,571
Finland - 0.62%
Nokia OYJ (A)*		51,000		932,849
France - 6.34%
Pinault-Printemps-Redoute SA (A)		7,150		805,430
STMicroelectronics N.V. (A)		30,300		544,178
Sanofi-Aventis (A)		24,500		2,146,400
Total S.A. (A)		12,300		3,090,035
VINCI (A)		34,200		2,941,539
				9,527,582
Germany - 6.89%
Allianz Aktiengesellschaft, Registered Shares (A)		10,000		1,514,793
BASF Aktiengesellschaft (A)		24,200		1,854,530
Commerzbank Aktiengesellschaft (A)		40,000		1,241,668
Continental Aktiengesellschaft (A)		12,400		1,099,554
Fresenius AG (A)		5,430		735,426
Munchener Ruckversicherungs-Gesellschaft       Aktiengesellschaft, Registered Shares (A)		6,150		832,722
Siemens AG (A)		35,800		3,067,288
				10,345,981
Ireland - 4.68%
Anglo Irish Bank Corporation plc (Great Britain) (A)		280,000		4,253,022
Anglo Irish Bank Corporation plc (Ireland) (A)		65,000		986,539
CRH public limited company (A)		60,700		1,785,062
				7,024,623
Italy - 6.60%
Assicurazioni Generali SpA (A)		36,700		1,282,612
Banca Intesa S.p.A. (A)		151,000		799,987
Banco Popolare di Verona e Novara S.c. a r.l. (A)		51,500		1,041,987
FASTWEB S.p.A. (A)*		20,000		913,966
UniCredito Italiano S.p.A. (A)		455,000		3,135,070
UniCredito Italiano S.p.A. (A)		398,399		2,735,641
				9,909,263
Japan - 30.13%
Bank of Fukuoka, Ltd. (The) (A)		120,000		1,026,667
Canon Inc. (A)		36,070		2,110,340
Central Japan Railway Company (A)		143		1,370,161
CREDIT SAISON CO., LTD. (A)		48,000		2,397,253
DENSO CORPORATION (A)		41,000		1,414,932
Dentsu Inc. (A)		290		944,249
FANUC LTD (A)		10,000		848,773
Honda Motor Co., Ltd. (A)		27,000		1,540,764
Hoya Corporation (A)		50,800		1,826,362
iShares MSCI Japan Index Fund		300,000		4,050,000
Japan Tobacco Inc. (A)		115		1,677,195
KDDI CORPORATION (A)		243		1,401,111
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)		250		3,391,699
Mitsubishi Corporation (A)		76,000		1,681,943
Mitsubishi Estate Co., Ltd. (A)		140,000		2,908,382
Mitsui & Co., Ltd. (A)		97,000		1,246,068
Mizuho Financial Group, Inc. (A)		290		2,301,607
ORIX Corporation (A)		9,100		2,318,692
SMC Corporation (A)		14,300		2,043,117
Sega Sammy Holdings Inc. (A)		69,700		2,334,464
Sumitomo Mitsui Financial Group, Inc. (A)		80		847,925
Taisei Corporation (A)		220,000		998,007
Toyota Motor Corporation (A)		61,500		3,191,419
Ushio Inc. (A)		60,000		1,401,620
				45,272,750
Mexico - 1.06%
Cemex, S.A. de C.V., ADR		26,860		1,593,604
Netherlands - 1.34%
ASML Holding N.V. (A)*		101,000		2,020,789
Norway - 0.64%
Statoil ASA (A)		42,000		964,544
Russia - 1.60%
OAO LUKOIL, ADR		40,000		2,409,000
Singapore - 0.56%
DBS Group Holdings Ltd (A)		85,300		846,510
South Korea - 3.35%
Hynix Semiconductor Inc. (A)*		60,000		2,095,266
Samsung Electronics Co., Ltd. (A)		4,500		2,933,670
				5,028,936
Spain - 3.69%
Enagas, S.A. (A)		120,000		2,244,664
Fadesa Inmobiliaria, S.A. (A)		100,000		3,295,962
				5,540,626
Supranational - 1.19%
iShares MSCI EAFE Index Fund		30,000		1,783,800
Sweden - 1.17%
Telefonaktiebolaget LM Ericsson, B Shares (A)		510,000		1,752,533
Switzerland - 8.97%
Compagnie Financiere Richemont SA (A)		20,600		896,709
Credit Suisse Group, Registered Shares (A)		30,500		1,555,116
Holcim Ltd, Registered Shares (A)		22,400		1,525,665
Julius Baer Holding Ltd., Bearer Shares (A)		23,900		1,693,307
Nestle S.A., Registered Shares (A)		10,280		3,074,495
Novartis AG, Registered Shares (A)		61,600		3,236,924
Swiss Reinsurance Company, Registered Shares (A)		20,500		1,500,780
				13,482,996
United Kingdom - 8.51%
BAE SYSTEMS plc (A)		150,000		985,195
BHP Billiton Plc (A)		201,400		3,290,080
IG Group Holdings plc (A)(B)*		155,000		462,683
Reckitt Benckiser plc (A)		51,500		1,701,220
Rio Tinto plc (A)		9,300		424,815
Royal Bank of Scotland Group plc (The) (A)		81,500		2,460,859
Smiths Group plc (A)		51,500		926,810
Standard Chartered PLC (A)		41,000		913,494
tesco plc (A)		283,000		1,614,068
				12,779,224
United States - 1.33%
Inco Limited		23,600		1,028,252
Schlumberger Limited		10,000		971,500
				1,999,752
TOTAL COMMON STOCKS - 99.05%			$	148,816,088
(Cost: $108,819,256)
SHORT-TERM SECURITY - 0.95%	Principal Amount in Thousands
Security and Commodity Brokers
UBS Finance Delaware LLC (UBS AG),
4.19%, 1-3-06	$	1,430	$	1,429,667
(Cost: $1,429,667)
TOTAL INVESTMENT SECURITIES - 100.00%			$	150,245,755
(Cost: $110,248,923)

Notes to Schedule of Investments

Certain acronyms are used within the body of the Fund's holdings. The definition of this acronym is as follows: ADR - American Depositary Receipts.

*No dividends were paid during the preceding 12 months.

(A)Listed on an exchange outside the United States.

(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. At December 31, 2005, the total value of these securities amounted to $1,724,443 or 1.15% of total investments.

The Investments of Ivy International Balanced Fund
December 31, 2005
COMMON STOCKS			Shares		Value
Australia - 1.71%
National Australia Bank Limited (A)			54,242	$	1,288,380
Qantas Airways Limited (A)			157,000		464,991
Qantas Airways Limited (A)(B)			54,528		161,497
					1,914,868
Belgium - 0.87%
Agfa-Gevaert N.V. (A)			53,270		971,848
Bermuda - 1.74%
ACE Limited			22,750		1,215,760
XL Capital Ltd, Class A			10,870		732,421
					1,948,181
Canada - 1.07%
Barrick Gold Corporation (A)			17,500		487,913
Domtar Inc. (A)			122,610		707,741
					1,195,654
China - 1.01%
China Telecom Corporation Limited (A)		2,700,000			992,436
China Telecom Corporation Limited (A)(B)			360,000		132,325
					1,124,761
Denmark - 1.66%
Vestas Wind Systems A/S (A)*			112,993		1,855,730
Finland - 2.41%
Stora Enso Oyj, Class R (A)			103,390		1,400,288
UPM-Kymmene Corporation (A)			66,310		1,300,027
					2,700,315
France - 3.69%
AXA (A)			28,400		916,552
France Telecom (A)			42,834		1,064,422
SUEZ (A)			22,400		697,456
Sanofi-Aventis (A)			9,978		874,154
Total S.A. (A)			2,280		572,787
					4,125,371
Germany - 3.17%
Deutsche Post AG (A)			63,460		1,541,666
E.ON AG (A)			8,820		913,253
Munchener Ruckversicherungs-Gesellschaft       Aktiengesellschaft, Registered Shares (A)			5,360		725,755
Volkswagen Aktiengesellschaft (A)			9,430		361,159
					3,541,833
Hong Kong - 2.15%
Cheung Kong (Holdings) Limited (A)			108,000		1,108,046
Hutchison Whampoa Limited, Ordinary Shares (A)			136,000		1,295,338
					2,403,384
Israel - 0.85%
Check Point Software Technologies Ltd.*			47,610		955,295
Italy - 0.73%
Eni S.p.A. (A)			29,307		812,936
Japan - 4.80%
Hitachi, Ltd. (A)			122,000		822,402
KDDI CORPORATION (A)			196		1,130,114
Konica Minolta Holdings, Inc. (A)			55,500		565,188
Nippon Telegraph and Telephone Corporation (A)			194		881,706
Sony Corporation (A)			25,900		1,058,532
Takeda Chemical Industries, Ltd. (A)			16,900		914,249
					5,372,191
Mexico - 1.13%
Telefonos de Mexico, S.A. de C.V., ADR			51,010		1,258,927
Netherlands - 3.99%
Akzo Nobel N.V. (A)			16,030		742,982
ING Groep N.V., Certicaaten Van Aandelen (A)			37,990		1,317,801
Koninklijke Philips Electronics N.V., Ordinary Shares (A)			40,460		1,257,385
Reed Elsevier NV (A)			82,170		1,147,911
					4,466,079
Norway - 2.32%
Norske Skogindustrier ASA (A)			62,671		995,882
Telenor ASA (A)			160,750		1,577,895
Telenor ASA (A)(B)			2,550		25,030
					2,598,807
Portugal - 0.83%
Portugal Telecom, SGPS, S.A., Ordinary Shares (A)			92,240		933,681
Singapore - 1.29%
DBS Group Holdings Ltd (A)			33,000		327,489
Venture Corporation Limited (A)			135,000		1,120,500
					1,447,989
South Africa - 0.71%
Sappi Limited (A)			69,000		790,706
South Korea - 4.68%
KT Corporation, ADR			48,730		1,050,132
Kookmin Bank, ADR			16,440		1,228,232
POSCO, ADR			9,340		462,423
SK Telecom Co., Ltd., ADR			41,000		831,890
Samsung Electronics Co., Ltd. (A)			530		345,521
Samsung Electronics Co., Ltd., GDR (B)			4,010		1,319,290
					5,237,488
Spain - 2.15%
Gamesa Corporacion Tecnologica, S.A. (A)			53,110		777,155
Iberdrola, S.A. (A)			17,743		485,025
Repsol YPF, S.A. (A)			23,438		684,546
Telefonica, S.A., ADR			10,025		451,326
Telefonica, S.A., Brazilian Depositary Receipts (A)			570		8,628
					2,406,680
Sweden - 2.15%
Nordea Bank AB, Finnish Depositary Receipts (A)			113,190		1,183,264
Securitas AB, Class B (A)			73,500		1,221,222
					2,404,486
Switzerland - 2.20%
Lonza Group Ltd, Registered Shares (A)			5,800		354,872
Nestle S.A., Registered Shares (A)			4,100		1,226,209
Swiss Reinsurance Company, Registered Shares (A)			11,950		874,845
					2,455,926
Taiwan - 3.50%
Chunghwa Telecom Co., Ltd., ADR			24,700		453,245
Compal Electronics Inc., GDR			53,235		239,893
Compal Electronics Inc., GDR (B)			128,409		578,650
Lite-On Technology Corporation, GDR			102,998		1,403,384
Mega Financial Holding Company (A)		1,909,000			1,241,593
					3,916,765
United Kingdom - 15.60%
AMVESCAP PLC (A)			26,400		200,760
BAE SYSTEMS plc (A)			179,510		1,179,016
BP p.l.c. (A)			82,800		881,806
Boots Group PLC (A)			64,600		672,419
British Sky Broadcasting Group plc (A)			153,050		1,307,388
Cadbury Schweppes plc (A)			72,900		689,203
Compass Group PLC (A)			690,420		2,619,232
GlaxoSmithKline plc (A)			42,970		1,086,023
Pearson plc (A)			86,110		1,018,540
Rentokil Initial plc (A)			376,520		1,059,151
Rolls-Royce Group plc, B shares (A)		4,028,040			7,069
Royal Bank of Scotland Group plc (The) (A)			58,100		1,754,306
Royal Dutch Shell plc, Class B (A)			27,641		883,591
Shire plc (A)			44,000		563,219
Smiths Group plc (A)			39,780		715,894
Unilever PLC (A)			115,760		1,148,180
Vodafone Group Plc (A)			437,630		944,937
Wm MORRISON SUPERMARKETS PLC (A)			216,740		721,559
					17,452,293
TOTAL COMMON STOCKS - 66.41%				$	74,292,194
(Cost: $62,319,392)
OTHER GOVERNMENT SECURITIES		Principal Amount in Thousands
Australia - 0.82%
Queensland Treasury Corporation:
6.0%, 8-14-13 (C)		AUD1,200			915,029
6.0%, 10-14-15 (C)			10		7,686
					922,715
Austria - 0.83%
Republic of Austria:
5.5%, 10-20-07 (C)		EUR360			445,892
4.0%, 7-15-09 (C)			70		85,644
5.0%, 7-15-12 (C)			300		393,165
					924,701
Belgium - 0.70%
Belgium Government Bond:
4.75%, 9-28-06 (C)			100		120,147
7.5%, 7-29-08 (C)			405		532,147
5.0%, 9-28-12 (C)			100		131,303
					783,597
Canada - 5.39%
Canadian Government Bond:
3.0%, 6-1-06 (C)		CAD950			815,254
3.25%, 12-1-06 (C)			4,210		3,602,647
4.5%, 9-1-07 (C)			1,040		903,976
6.0%, 6-1-11 (C)			748		707,809
					6,029,686
Denmark - 0.22%
Denmark Government Bond,
5.0%, 11-15-13 (C)		DKK1,400			249,790
Finland - 0.83%
Finland Government Bond:
3.0%, 7-4-08 (C)		EUR400			474,900
5.0%, 4-25-09 (C)			60		75,554
5.75%, 2-23-11 (C)			280		372,989
					923,443
France - 1.47%
France Government Bond OAT:
4.0%, 10-25-09 (C)			712		873,582
4.0%, 4-25-13 (C)			620		771,829
					1,645,411
Germany - 0.78%
Deutsche Bundesrepublik:
6.0%, 7-4-07 (C)			531		657,581
5.0%, 7-4-11 (C)			170		220,326
					877,907
Ireland - 0.64%
Ireland Government Bond,
5.0%, 4-18-13 (C)			540		713,156
Netherlands - 1.08%
Netherlands Government Bond,
5.75%, 2-15-07 (C)			990		1,210,745
Norway - 2.36%
Norway Government Bond,
6.75%, 1-15-07 (C)	NOK17,135				2,638,866
New Zealand - 1.79%
New Zealand Government Bond:
7.0%, 7-15-09 (C)		NZD1,950			1,375,584
6.0%, 11-15-11 (C)			900		621,781
					1,997,365
Poland - 3.29%
Poland Government Bond:
8.5%, 11-12-06 (C)		PLN2,410			766,574
8.5%, 5-12-07 (C)			1,100		355,835
6.0%, 5-24-09 (C)			4,275		1,362,528
6.25%, 10-24-15 (C)			3,250		1,088,146
5.75%, 9-23-22 (C)			320		104,468
					3,677,551
Singapore - 2.31%
Singapore Government Bond,
2.625%, 10-1-07 (C)		SGD4,300			2,584,182
South Korea - 3.86%
South Korea Treasury Bond:
4.75%, 3-3-07 (C)	KRW2,300,000				2,276,061
3.75%, 9-10-07 (C)		1,100,000			1,068,019
4.5%, 9-9-08 (C)		1,000,000			974,748
					4,318,828
Spain - 1.24%
Spain Government Bond:
4.8%, 10-31-06 (C)		EUR100			120,453
6.0%, 1-31-08 (C)			350		439,070
5.0%, 7-30-12 (C)			630		824,612
					1,384,135
Sweden - 2.26%
Sweden Treasury Bill,
0.0%, 9-20-06 (C)		SEK1,500			186,365
Sweden Government Bond:
8.0%, 8-15-07 (C)			15,380		2,100,291
6.5%, 5-5-08 (C)			1,800		245,196
					2,531,852
Thailand - 2.33%
Thailand Treasury Bill:
0.0%, 2-23-06 (C)		THB12,900			313,363
0.0%, 3-9-06 (C)			3,420		82,984
0.0%, 7-27-06 (C)			8,000		190,815
0.0%, 9-7-06 (C)			24,900		591,528
0.0%, 10-5-06 (C)			16,300		386,266
Thailand Government Bond,
8.0%, 12-8-06 (C)			41,250		1,037,499
					2,602,455
TOTAL OTHER GOVERNMENT SECURITIES - 32.20%				$	36,016,385
(Cost: $33,143,001)
SHORT-TERM SECURITY - 1.39%
Security and Commodity Brokers
UBS Finance Delaware LLC (UBS AG),
4.19%, 1-3-06		$	1,559	$	1,558,637
(Cost: $1,558,637)
TOTAL INVESTMENT SECURITIES - 100.00%				$	111,867,216
(Cost: $97,021,030)

Notes to Schedule of Investments

Certain acronyms are used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts, GDR - Global Depositary Receipts.

*No dividends were paid during the preceding 12 months.

(A)Listed on an exchange outside the United States.

(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. At December 31, 2005, the total value of these securities amounted to $2,216,792 or 1.98% of total investments.

(C)Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, CAD - Canadian Dollar, DKK - Danish Krone, EUR - Euro, KRW - South Korean Won, NOK - Norwegian Krone, NZD - New Zealand Dollar, PLN - Polish Zloty, SEK - Swedish Krona, SGD - Singapore Dollar, THB - Thailand Baht).

The Investments of Ivy International Value Fund
December 31, 2005
COMMON STOCKS		Shares			Value
Australia - 0.43%
Westpac Banking Corporation (A)			17,800	$	296,869
Austria - 5.97%
OMV Aktiengesellschaft (A)			40,000		2,344,111
Raiffeisen International Bank-Holding AG (A)*			9,500		624,771
WIENER STADTISCHE Allgemeine Versicherung       Aktiengesellschaft (A)			20,000		1,180,343
					4,149,225
Belgium - 2.87%
Fortis (A)			50,000		1,591,746
KBC Group NV (A)			4,300		400,387
					1,992,133
Brazil - 1.78%
Companhia Vale do Rio Doce, ADR			30,000		1,234,200
Canada - 1.53%
EnCana Corporation (A)			23,550		1,064,810
China - 1.27%
China Life Insurance Company Limited, H shares (A)*	1,000,000				883,455
Denmark - 1.09%
TrygVesta A/S (A)(B)*			15,000		758,093
France - 5.22%
ALSTOM (A)*			2,500		143,902
Nexity (A)			10,000		509,075
Peugeot S.A. (A)			10,000		576,557
Sanofi-Aventis (A)			9,742		853,479
Technip-Coflexip (A)			16,000		962,269
Unibail Holding (A)			2,000		266,139
Vivendi Universal (A)			10,000		313,258
					3,624,679
Germany - 7.43%
Commerzbank Aktiengesellschaft (A)			38,000		1,179,585
Continental Aktiengesellschaft (A)			8,000		709,389
E.ON AG (A)			10,000		1,035,434
elexis AG (A)*			30,000		671,978
Hypo Real Estate Holding AG (A)			20,000		1,040,406
IVG Immobilien AG (A)(B)			25,000		526,537
					5,163,329
Hong Kong - 2.52%
Agile Property Holdings Limited (A)(B)*	730,000				353,059
Beijing Capital Land Limited, Class H (A)	2,000,000				586,820
Link Real Estate Investment Trust (The) (A)(B)*	430,000				815,229
					1,755,108
Ireland - 1.36%
Bank of Ireland (A)			60,000		944,748
Italy - 5.84%
Banca Popolare di Milano Scarl (A)			50,000		547,847
Banco Popolare di Verona e Novara S.c. a r.l. (A)			38,000		768,845
Beni Stabili SpA (A)	300,000				289,285
BUZZI UNICEM SpA (A)			30,000		469,532
Fondiaria-SAI S.p.A. (A)			20,000		658,719
UniCredito Italiano S.p.A. (A)	192,500				1,326,376
					4,060,604
Japan - 25.81%
Asatsu-DK Inc. (A)			25,000		794,929
Bank of Fukuoka, Ltd. (The) (A)			50,000		427,778
Central Japan Railway Company (A)			57		546,148
Chubu Electric Power Company, Incorporated (A)			20,000		476,534
Electric Power Development Co., Ltd. (A)(B)			30,000		1,030,229
Hokuhoku Financial Group, Inc. (A)	124,000				579,336
Honda Motor Co., Ltd. (A)			11,000		627,719
Ichiyoshi Securities Co., Ltd. (A)	100,000				1,789,121
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)			90		1,221,012
Kubota Corporation (A)	100,000				840,293
Mitsubishi Corporation (A)			29,000		641,794
Mitsubishi Estate Co., Ltd. (A)			62,000		1,287,998
Mitsui & Co., Ltd. (A)			36,000		462,458
Mitsui Trust Holdings, Inc. (A)			25,000		300,165
Mizuho Financial Group, Inc. (A)			110		873,023
Nikko Exchange Traded Index (A)			8,410		1,159,508
Nintendo Co., Ltd. (A)			6,000		724,976
Nippon Telegraph and Telephone Corporation (A)			120		545,385
Nishi-Nippon City Bank, Ltd. (The) (A)	116,000				692,449
Secom Co., Ltd. (A)			15,000		784,754
Sega Sammy Holdings Inc. (A)			28,900		967,948
Sumitomo Mitsui Financial Group, Inc. (A)			30		317,972
Tochigi Bank, Ltd. (The) (A)			50,000		436,681
Tokyo Electric Power Company, Incorporated (The) (A)			16,500		400,835
					17,929,045
Netherlands - 2.62%
Koninklijke Philips Electronics N.V., Ordinary Shares (A)			30,000		932,317
Royal Boskalis Westminster nv, Certicaaten Van Aandelen (A)			8,800		586,028
Wolters Kluwer nv, Certicaaten Van Aandelen (A)			15,000		303,314
					1,821,659
Norway - 2.21%
Cermaq ASA (A)(B)*			81,600		661,935
Stolt Offshore S.A. (A)*			75,000		872,313
					1,534,248
South Korea - 6.08%
Hynix Semiconductor Inc. (A)*			50,000		1,746,055
iShares MSCI South Korea Index Fund			10,000		446,100
Kyeryong Construction Industrial Co. Ltd (A)			20,000		595,538
Samsung Electronics Co., Ltd. (A)			2,200		1,434,238
					4,221,931
Spain - 6.20%
Altadis, S.A. (A)			10,000		453,668
Enagas, S.A. (A)			70,000		1,309,387
Fadesa Inmobiliaria, S.A. (A)			40,000		1,318,385
Fadesa Inmobiliaria, S.A. (A)(B)			15,000		494,394
Repsol YPF, S.A. (A)			25,000		730,167
					4,306,001
Switzerland - 5.56%
Credit Suisse Group, Registered Shares (A)			13,300		678,132
Holcim Ltd, Registered Shares (A)			7,750		527,853
Julius Baer Holding Ltd., Bearer Shares (A)			10,000		708,497
Swiss Reinsurance Company, Registered Shares (A)			11,000		805,297
Verwaltungs- und Privat-Bank Aktiengesellschaft (A)			3,000		502,036
Zurich Financial Services, Registered Shares (A)*			3,000		639,245
					3,861,060
United Kingdom - 9.88%
ARM Holdings plc (A)	300,000				624,538
BAE SYSTEMS plc (A)	100,000				656,797
BHP Billiton Plc (A)			86,860		1,418,949
British American Tobacco p.l.c. (A)			40,000		894,654
Kazakhmys PLC (A)*			50,000		665,399
Royal Bank of Scotland Group plc (The) (A)			33,300		1,005,480
Royal Dutch Shell plc, Class A (A)			40,000		1,220,832
Vedanta Resources plc (A)(B)			25,200		376,550
					6,863,199
United States - 0.94%
Inco Limited			15,000		653,550
TOTAL COMMON STOCKS - 96.61%				$	67,117,946
(Cost: $52,658,279)
SHORT-TERM SECURITY - 3.39%		Principal Amount in Thousands
Security and Commodity Brokers
UBS Finance Delaware LLC (UBS AG),
4.19%, 1-3-06		$	2,358	$	2,357,451
(Cost: $2,357,451)
TOTAL INVESTMENT SECURITIES - 100.00%				$	69,475,397
(Cost: $55,015,730)

Notes to Schedule of Investments

Certain acronyms are used within the body of the Fund's holdings. The definition of this acronym is as follows: ADR - American Depositary Receipts.

*No dividends were paid during the preceding 12 months.

(A)Listed on an exchange outside the United States.

(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. At December 31, 2005, the total value of these securities amounted to $5,016,026 or 7.22% of total investments.

The Investments of Ivy Mortgage Securities Fund
December 31, 2005
CORPORATE DEBT SECURITIES	Principal Amount in Thousands			Value
Finance Companies - 42.09%
ABFS Mortgage Loan Trust 2001-2,
6.99%, 12-25-31	$	1,607	$	1,621,567
ABFS Mortgage Loan Trust 2002-4,
7.423%, 12-15-33		1,485		1,496,279
Asset Securitization Corporation (Interest Only):
1.65786%, 10-13-26 (A)		9,088		291,326
2.33714%, 8-13-29		7,580		590,006
Associates Manufactured Housing Contract Pass-Through       Certificates,
7.9%, 3-15-27		1,800		1,876,410
Banc of America Alternative Loan Trust 2004-11,
6.0%, 12-25-34		1,592		1,590,917
Banc of America Alternative Loan Trust 2005-6,
6.0%, 7-25-35		1,117		1,113,496
Banc of America Commercial Mortgage Inc.,       Commercial Mortgage Pass-Through Certificates:
Series 2001-PB1,
6.15%, 5-11-35 (A)		2,000		2,035,535
Series 2002-2,
6.2%, 7-11-43 (A)		1,200		1,236,195
Banc of America Funding 2004-2 Trust,
6.5%, 7-20-32		1,264		1,281,129
Banc of America Funding Corporation,
5.00945%, 9-20-34		1,549		1,524,611
Banc of America Mortgage 2005-J Trust,
5.11109%, 11-25-35		2,928		2,912,171
Banc of America Mortgage Trust 2004-2:
5.0%, 3-25-19		334		324,291
5.0%, 3-25-19		260		249,522
Banc of America Mortgage Trust 2004-3:
4.875%, 4-25-19		450		431,090
4.875%, 4-25-19		241		228,104
Banc of America Structured Securities Trust 2002-X1 F,
6.274%, 10-11-33 (A)		1,750		1,818,769
Banco Hipotecario Nacional:
7.916%, 7-25-09 (A)		23		582
2.57%, 3-25-11 (A)		10		250
7.54%, 5-31-17 (A)		84		4,198
Bank of America Mortgage Securities, Inc.,
5.75%, 8-25-34		1,419		1,406,069
BankAmerica Manufactured Housing Contract Trust:
7.8%, 10-10-26		2,000		2,054,208
7.015%, 1-10-28		1,448		1,476,627
BlackRock Capital Finance,
7.75%, 9-25-26 (A)		845		850,692
C-Bass Mortgage Loan Asset-Backed Certificates:
Series 2005-CB3,
5.109%, 12-25-34		1,254		1,204,452
Series 2005-CB6,
4.80875%, 7-25-35		590		589,993
CHL Mortgage Pass-Through Trust 2003-28,
4.15%, 8-25-33		1,500		1,401,367
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35		2,301		2,232,951
Charlie Mac Trust 2004-2,
5.0%, 10-25-34		2,667		2,571,173
Chase Mortgage Finance Trust:
Series 2003-S11,
5.5%, 10-25-33		1,052		1,031,792
Series 2003-S2,
5.0%, 3-25-18		1,217		1,205,876
Collateralized Mortgage Obligation Trust,
5.0%, 7-1-18		43		43,279
Conseco Finance Securitizations Corp.,
6.981%, 6-15-32		1,200		1,215,317
CountryPlace Manufactured Housing Contract Trust 2005-1:
4.42%, 12-15-35 (A)		2,050		2,013,698
4.8%, 12-15-35 (A)		1,275		1,240,943
Countrywide Home Loans, Inc. Asset-Backed Certificates,       Series 2005-10,
4.915%, 2-25-36		5,000		4,846,921
Credit Suisse First Boston Mortgage Securities Corp.,
6.0%, 11-25-18		796		799,861
FFCA Secured Lending Corporation:
5.47%, 2-18-22 (A)		1,500		1,403,008
5.72%, 2-18-22 (A)		1,000		927,536
First Franklin Mortgage Loan Trust 2004-FFB,
5.7245%, 6-25-24		2,175		2,177,098
GMAC Commercial Mortgage Securities,
5.94%, 7-1-13 (A)		298		297,698
GMAC Commercial Mortgage Securities, Inc.       Series 2002-C2 Trust,
6.756%, 10-15-38 (A)		1,150		1,235,984
GRMT Fairbanks Trust,
6.47%, 6-20-32 (A)		741		747,878
Global Mortgage Securitization 2005-A Ltd. and Global       Mortgage Securitization 2005-A LLC,
5.25%, 4-25-32		869		828,976
Global Mortgage Securitization Ltd. and Global Mortgage       Securitization, LLC:
5.25%, 11-25-32 (A)		1,212		1,175,392
5.25%, 11-25-32 (A)		565		551,112
Green Tree Financial Corporation:
7.65%, 4-15-19		1,030		1,065,379
8.3%, 11-15-19		822		853,261
9.1%, 4-15-25		1,075		1,368,588
Heller Financial Commercial Mortgage Asset Corp.,
6.75%, 1-17-34 (A)		1,925		2,030,592
Hilton Hotel Pool Trust:
4.81125%, 10-3-15 (A)		500		502,683
7.653%, 10-3-15 (A)		1,955		2,059,858
Home Equity Loan Trust 2003-HS2,
5.09%, 7-25-33		1,000		988,722
J.P. Morgan Chase Commercial Mortgage Securities Corp.,
6.2207%, 10-12-37 (A)		2,300		2,382,850
J.P. Morgan Mortgage Trust 2004-A3,
4.3161%, 7-25-34		1,714		1,665,803
J.P. Morgan Mortgage Trust 2005-S2,
5.66512%, 9-25-35		2,309		2,264,034
LB-UBS Commercial Mortgage Trust 2005-C7,
5.197%, 11-15-30		2,000		2,006,535
Lehman ABS Manufactured Housing Contract Trust 2001-B,
5.873%, 5-15-22		1,054		1,062,748
Lehman XS Trust, Series 2005-8,
5.69%, 12-25-35		3,057		3,064,765
MASTR Asset Securitization Trust 2003-10,
5.5%, 11-25-33		1,661		1,634,107
MMCA Automobile Trust 2002-1,
5.37%, 1-15-10		790		787,565
Metropolitan Asset Funding, Inc.,
6.98%, 5-20-12 (A)		85		85,223
Mid-State Capital Corporation 2004-1 Trust:
6.005%, 8-15-37		428		438,332
6.497%, 8-15-37		1,555		1,566,400
Mid-State Trust:
7.34%, 7-1-35		1,680		1,756,629
7.4%, 7-1-35		1,586		1,653,956
7.79%, 7-1-35		697		726,607
Money Store Trust 1998-B (The),
4.51938%, 8-15-29		2,279		2,279,168
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4:
1.0668%, 11-28-35 (Interest Only) (A)	33,476			1,101,695
5.88%, 11-28-35 (A)		680		660,106
5.88%, 11-28-35 (A)		340		337,732
NationsLink Funding Corporation, Commercial Mortgage       Pass-Through Certificates, Series 1998-2:
5.0%, 8-20-30 (A)		1,000		939,506
7.105%, 8-20-30 (A)		1,040		1,114,968
Nomura Asset Securities Corporation, Commercial Mortgage       Pass-Through Certificates, Series1998-D6,
6.0%, 3-15-30 (A)		1,650		1,699,615
Oakwood Mortgage Investors, Inc.:
8.1%, 10-15-21 (A)		646		655,641
7.375%, 8-15-27		572		583,506
Origen Manufactured Housing Contract Trust 2004-A:
2.02%, 10-15-13		20		19,966
5.7%, 1-15-35		543		542,275
5.91%, 1-15-35		1,600		1,598,782
Origen Manufactured Housing Contract Trust 2004-B,
4.75%, 8-15-21		400		387,321
Origen Manufactured Housing Contract Trust 2005-A,
4.97%, 10-15-21		935		922,881
Origen Manufactured Housing Contract Trust 2005-B,
5.605%, 5-15-22		360		361,913
Paine Webber Mortgage Acceptance Corporation,
7.655%, 1-2-12 (A)		2,450		2,509,235
Prudential Home Mortgage Securities:
6.98%, 9-28-08 (A)		20		20,058
6.73%, 4-28-24 (A)		6		5,747
8.0334%, 9-28-24 (A)		37		36,337
RALI Series 2003-QS10 Trust,
5.5%, 5-25-33		2,202		2,164,707
RALI Series 2003-QS11 Trust,
5.75%, 6-25-33		2,571		2,522,046
RAMP Series 2005-RS1 Trust,
5.145%, 1-25-35		1,075		1,044,305
RFMSI Series 2004-S5 Trust:
4.5%, 5-25-19		375		356,897
4.5%, 5-25-19		187		175,734
Salomon Brothers Mortgage Securities VII, Inc., Mortgage       Pass-Through Certificates, Series 1997-HUD1,
7.75%, 12-25-30		1,871		1,935,391
Sequoia Mortgage Funding Company,
6.38%, 8-28-31 (A)		56		55,900
Structured Asset Mortgage Investments, Inc.:
6.75%, 4-30-30		25		25,278
6.75%, 4-30-30		12		11,543
Structured Asset Securities Corporation:
5.63%, 5-25-34		1,100		1,090,420
6.0%, 6-25-34		2,750		2,747,885
Vanderbilt Mortgage and Finance, Inc.:
7.525%, 7-7-14		65		64,983
7.07%, 12-7-14		314		317,295
7.955%, 12-7-24		1,000		1,050,250
7.525%, 11-7-26		915		942,428
Wachovia Bank Commercial Mortgage Trust (The):
4.942%, 11-15-34 (A)		964		907,417
4.942%, 11-15-34 (A)		306		292,753
Wells Fargo Mortgage Backed Securities:
2003-K Trust (The),
4.52042%, 11-25-33		1,200		1,174,932
2004-1 Trust (The),
5.5%, 2-25-34		1,684		1,635,768
				120,413,370
Real Estate Investment Trust - 0.26%
Covenant Retirement Communities, Inc.,
7.0%, 6-1-06		750		749,126
Security and Commodity Brokers - 0.22%
Bear Stearns Mortgage Securities Inc.,
8.0%, 11-25-29		629		627,138
TOTAL CORPORATE DEBT SECURITIES - 42.57%			$	121,789,634
(Cost: $123,812,302)
UNITED STATES GOVERNMENT AGENCY       OBLIGATIONS
Mortgage-Backed Obligations
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates:
6.0%, 4-1-17		1,976		2,017,317
5.5%, 12-1-17		954		960,808
5.5%, 9-1-19		2,001		2,013,351
5.5%, 5-1-20		2,085		2,097,350
5.5%, 6-1-20		1,752		1,762,747
3.5%, 2-15-30		2,000		1,858,291
6.5%, 9-1-32		1,448		1,496,856
5.5%, 5-1-34		1,620		1,613,246
5.5%, 5-1-34		1,193		1,187,501
6.5%, 5-1-34		1,242		1,273,194
5.5%, 10-1-34		1,318		1,307,788
5.5%, 1-1-35		7,775		7,702,109
5.5%, 7-1-35		3,717		3,683,637
5.5%, 10-1-35		1,978		1,962,075
5.0%, 12-1-35		2,700		2,613,092
5.0%, 12-1-35		1,000		968,125
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
5.5%, 1-1-17		1,975		1,989,358
6.0%, 1-1-18		589		602,424
5.5%, 2-1-18		599		603,747
5.5%, 3-1-18		2,796		2,814,893
5.0%, 5-1-18		1,805		1,788,628
5.0%, 10-1-18		1,878		1,860,678
5.5%, 9-1-19		475		477,939
5.5%, 2-1-24		684		684,453
6.0%, 8-1-29		542		548,699
7.0%, 11-1-31		271		282,947
6.5%, 2-1-32		251		259,237
6.5%, 2-1-32		197		203,729
6.5%, 2-1-32		176		181,785
7.0%, 2-1-32		351		367,964
7.0%, 3-1-32		504		529,080
6.5%, 4-1-32		104		107,879
6.5%, 5-1-32		190		195,559
6.5%, 7-1-32		940		971,337
6.0%, 9-1-32		198		201,134
6.0%, 10-1-32		1,267		1,287,865
6.0%, 10-1-32		1,220		1,238,939
6.5%, 10-1-32		93		96,047
6.0%, 11-1-32		1,089		1,105,339
6.0%, 11-1-32		640		650,323
6.0%, 3-1-33		1,632		1,658,105
6.0%, 3-1-33		1,512		1,536,717
6.0%, 3-1-33		1,121		1,137,613
6.0%, 3-1-33		320		324,647
5.5%, 4-1-33		2,078		2,065,120
5.5%, 5-1-33		727		721,307
5.5%, 5-1-33		368		365,486
6.0%, 6-1-33		2,250		2,273,901
5.0%, 11-1-33		2,042		1,986,130
6.0%, 12-1-33		697		705,958
5.0%, 1-1-34		2,003		1,947,999
5.5%, 1-1-34		1,141		1,132,391
5.5%, 1-1-34		876		869,995
6.0%, 1-1-34		490		494,440
5.0%, 3-1-34		4,189		4,073,741
5.0%, 3-1-34		461		447,706
5.5%, 3-1-34		3,103		3,080,434
5.5%, 4-1-34		2,461		2,443,681
5.5%, 4-1-34		2,070		2,052,159
5.5%, 4-1-34		764		756,775
5.0%, 5-1-34		216		209,667
5.5%, 7-1-34		2,206		2,191,236
6.0%, 8-1-34		772		779,055
5.5%, 9-1-34		1,710		1,696,180
6.0%, 9-1-34		1,339		1,351,441
6.5%, 9-1-34		2,321		2,381,340
5.5%, 10-1-34		2,472		2,450,618
5.5%, 11-1-34		932		924,188
6.0%, 11-1-34		589		594,727
6.5%, 11-1-34		121		124,310
6.0%, 12-1-34		6,715		6,778,457
5.5%, 1-1-35		847		839,264
4.5%, 2-1-35		534		504,117
5.5%, 2-1-35		3,241		3,214,869
5.5%, 2-1-35		2,488		2,470,248
5.5%, 2-1-35		1,415		1,402,477
4.795%, 3-1-35		2,862		2,819,784
5.0%, 3-1-35		242		235,116
6.5%, 3-1-35		1,847		1,898,571
6.0%, 4-1-35		2,443		2,465,790
5.0%, 5-1-35		1,003		971,725
5.176%, 6-1-35		1,460		1,455,986
6.0%, 6-1-35		3,537		3,570,288
4.681%, 7-1-35		1,820		1,803,375
5.5%, 7-1-35		991		981,438
4.5%, 9-1-35		1,190		1,120,568
4.5%, 10-1-35		1,836		1,729,231
5.5%, 10-1-35		2,045		2,029,220
5.5%, 10-1-35		1,146		1,136,811
Government National Mortgage Association Agency       REMIC/CMO (Interest Only):
1.30293%, 3-16-34		8,797		465,889
1.02697%, 7-16-40		7,080		316,935
0.36343%, 3-16-42	21,235			354,714
0.97748%, 6-17-45	20,445			1,208,492
Government National Mortgage Association Fixed Rate       Pass-Through Certificates:
7.875%, 5-15-17		690		715,512
6.25%, 7-15-24		356		371,444
5.0%, 7-15-34		1,156		1,142,084
5.5%, 12-15-34		2,176		2,190,634
5.5%, 12-15-34		1,392		1,401,770
5.5%, 12-15-34		790		795,675
5.5%, 1-1-35		2,840		2,856,864
United States Department of Veterans Affairs,       Guaranteed REMIC Pass-Through Certificates,       Vendee Mortgage Trust:
1995-1 Class 1:
7.21102%, 2-15-25		297		311,112
1995-1 Class 2,
7.7925%, 2-15-25		98		105,730
TOTAL UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS - 51.04%			$	146,008,727
(Cost: $148,293,775)
SHORT-TERM SECURITIES
Finance Companies - 1.74%
Prudential Funding LLC,
4.28%, 1-11-06		5,000		4,994,056
Health Care -- Drugs - 1.75%
Cloverleaf International Holdings S.A.       (Merck & Co., Inc.),
4.23%, 1-9-06		5,000		4,995,300
Security and Commodity Brokers - 2.90%
Greenwich Capital Holdings Inc.       (Royal Bank of Scotland PLC (The)),
4.2%, 1-3-06		8,305		8,303,062
TOTAL SHORT-TERM SECURITIES - 6.39%			$	18,292,418
(Cost: $18,292,418)
TOTAL INVESTMENT SECURITIES - 100.00%			$	286,090,779
(Cost: $290,398,495)

Notes to Schedule of Investments

Certain acronyms are used within the body of the Fund's holdings. The definitions of these acronyms are as follows: REMIC - Real Estate Mortgage Investment Conduit; CMO - Collateralized Mortgage Obligation.

(A)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. At December 31, 2005, the total value of these securities amounted to $33,228,712 or 11.61% of total investments.

The Investments of Ivy Pacific Opportunities Fund
December 31, 2005
COMMON STOCKS		Shares		Value
Australia - 3.66%
BHP Billiton Plc (A)		157,150	$	2,620,952
Novogen LTD (A)*		260,510		951,080
Rio Tinto Limited (A)		43,470		2,198,883
				5,770,915
Cayman Islands - 0.45%
China Paradise Electronics Retail Limited (A)(B)*		2,000,000		709,343
China - 12.96%
China Life Insurance Company Limited, H Shares (A)*		2,579,000		2,278,430
China Mobile (Hong Kong) Limited (A)		260,000		1,230,646
China Netcom Group Corporation (Hong Kong) Limited (A)		916,500		1,483,440
China Petroleum & Chemical Corporation, H Shares (A)		2,782,000		1,381,375
China Resources Power Holdings Company Limited (A)		1,600,000		902,801
China Resources Power Holdings Company Limited (A)(B)		1,000,000		564,250
China Shenhua Energy Company Limited, H Shares (A)(B)*		1,500,000		1,654,060
eLong, Inc., ADR*		39,950		403,295
Heng Tai Consumables Group Limited (A)		4,670,000		668,550
PetroChina Company Limited, H Shares (A)(B)		1,526,000		1,249,747
PORTS DESIGN LIMITED (A)		1,000,000		1,160,744
PORTS DESIGN LIMITED (A)(B)		500,000		580,372
SINA Corporation*		52,000		1,258,400
Sino-Forest Corporation, Class A (A)(B)*		217,000		922,173
Vimicro International Corporation, ADR*		170,000		1,660,050
Wah Sang Gas Holdings Limited (A)(C)*		736,000		15,188
Weichai Power Co., Ltd. (A)		600,000		1,013,716
ZTE Corporation, H Shares (A)		600,000		2,019,694
				20,446,931
Hong Kong - 13.12%
ASM Pacific Technology Limited (A)		250,000		1,410,626
Agile Property Holdings Limited (A)(B)*		1,620,000		783,502
Cheung Kong (Holdings) Limited (A)		220,000		2,257,130
China Oilfield Services Limited (A)		4,000,000		1,612,144
Chitaly Holdings Limited (A)		1,240,000		595,719
Dah Sing Financial Holdings Limited (A)		200,010		1,390,382
GST Holdings Limited (A)(B)		1,630,000		292,211
Hutchison Whampoa Limited, Ordinary Shares (A)		260,000		2,476,382
Lee & Man Paper Manufacturing Limited (A)		900,000		998,239
Lee & Man Paper Manufacturing Limited (A)(B)		400,000		443,662
Link Real Estate Investment Trust (The) (A)(B)*		532,000		1,008,609
Panva Gas Holdings Limited (A)*		2,000,000		1,064,015
Regal Hotels International Holdings Limited (A)	21,000,000			1,489,621
Sinolink Worldwide Holdings Limited (A)		7,800,000		2,238,301
Sun Hung Kai Properties Limited (A)		128,000		1,246,381
Wharf (Holdings) Limited (The) (A)		392,000		1,385,257
				20,692,181
India - 5.09%
ICICI Bank Limited, ADR		56,000		1,612,800
Infosys Technologies Limited (A)		45,000		2,997,083
ONGC Videsh Limited (A)		108,460		2,832,205
Patni Computer Systems Limited, ADR*		25,000		579,500
				8,021,588
Indonesia - 1.03%
PT Gudang Garam Tbk (A)		459,000		543,983
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia       Tbk., Series B Shares (A)		1,800,000		1,080,366
				1,624,349
Malaysia - 2.90%
AmcorpGroup Berhad (A)*		2,500,000		648,234
DiGi.Com Berhad (A)*		400,000		825,506
Genting Berhad (A)		200,000		1,132,425
IOI Corporation Berhad (A)		400,000		1,312,343
Malaysia International Shipping Corporation Berhad (A)		250,200		655,372
				4,573,880
Singapore - 7.07%
DBS Group Holdings Ltd (A)		266,000		2,639,762
Hongkong Land Holdings Limited		401,000		1,259,140
Keppel Corporation Limited (A)		362,540		2,398,544
Keppel Land Limited (A)		550,000		1,210,718
SembCorp Industries Ltd (A)		1,000,000		1,647,972
Singapore Telecommunications Limited (A)		1,273,000		1,998,334
				11,154,470
South Korea - 25.21%
Cheil Industries Inc. (A)		57,230		1,590,902
Daelim Industrial Co., Ltd. (A)		17,060		1,215,136
Hana Financial Group, Inc. (A)*		100,000		4,570,411
Honam Petrochemical Corp. (A)		24,200		1,197,012
Hynix Semiconductor Inc. (A)*		100,000		3,492,111
Hyundai Mipo Dockyard Co., Ltd. (A)		27,000		1,637,335
Hyundai Motor Company (A)		30,000		2,887,669
iShares MSCI South Korea Index Fund		50,000		2,230,500
Kookmin Bank (A)		63,000		4,767,770
Kyeryong Construction Industrial Co. Ltd (A)		46,000		1,369,738
LG Chem, Ltd. (A)		18,500		1,043,181
LG.Philips LCD Co., Ltd., ADR*		73,000		1,566,580
SK Corporation (A)		35,000		1,803,927
SK Telecom Co., Ltd. (A)		9,000		1,611,515
Samsung Electronics Co., Ltd. (A)		11,800		7,692,734
Samsung SDI Co., Ltd. (A)		9,450		1,089,108
				39,765,629
Supranational - 1.25%
iShares MSCI Pacific ex-Japan Index Fund		20,000		1,972,800
Taiwan - 18.31%
Asia Optical Co., Inc. (A)		209,000		1,435,715
Asustek Computer Inc. (A)		580,000		1,784,534
Cathay Financial Holding Co., Ltd. (A)		1,680,000		3,045,101
Cheng Shin Rubber Industry Co., Ltd. (A)*		800,000		706,746
Chunghwa Telecom Co., Ltd., ADR		137,000		2,513,950
Compal Communications, Inc. (A)		560,000		2,610,086
Formosa Plastics Corporation (A)		1,479,000		2,275,281
Hon Hai Precision Ind. Co., Ltd. (A)		560,000		3,070,690
iShares MSCI Taiwan Index Fund		200,000		2,496,000
MediaTek Incorporation (A)		270,000		3,183,099
Quanta Computer Inc. (A)		1,359,306		1,908,946
TSRC Corporation (A)		1,301,000		713,387
Taiwan Semiconductor Manufacturing Company Ltd. (A)		1,649,227		3,140,045
				28,883,580
Thailand - 5.31%
Bangkok Bank Public Company Limited (A)		824,000		2,309,811
KASIKORNBANK PUBLIC COMPANY LIMITED (A)		1,164,600		2,129,068
LAND AND HOUSES PUBLIC COMPANY LIMITED (A)		3,405,700		738,836
PTT Public Company Limited (A)		239,000		1,316,612
Silicon Motion Technology Corporation, ADR*		60,000		719,400
Thai Oil Public Company Limited (A)		400,000		619,135
Thai Oil Public Company Limited (A)(B)		350,000		541,743
				8,374,605
United Kingdom - 1.06%
Standard Chartered PLC (A)		75,000		1,676,307
TOTAL COMMON STOCKS - 97.42%			$	153,666,578
(Cost: $127,248,790)

SHORT-TERM SECURITY - 2.58%	Principal Amount in Thousands
Security and Commodity Brokers
UBS Finance Delaware LLC (UBS AG),
4.19%, 1-3-06	$	4,073	$	4,072,052
(Cost: $4,072,052)
TOTAL INVESTMENT SECURITIES - 100.00%			$	157,738,630
(Cost: $131,320,842)

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

(A)Listed on an exchange outside the United States.

(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. At December 31, 2005, the total value of these securities amounted to $8,749,672 or 5.55% of total investments.

(C)Security valued in good faith by the Valuation Committee of the Board of Trustees.

The Investments of Ivy Real Estate Securities Fund
December 31, 2005
COMMON STOCKS		Shares		Value
Business Equipment and Services - 3.64%
Brookfield Properties Corporation		525,300	$	15,454,326
Hotels and Gaming - 9.67%
Hilton Hotels Corporation		614,700		14,820,417
Marriott International, Inc., Class A		74,900		5,016,053
Starwood Hotels & Resorts Worldwide, Inc.		331,100		21,144,046
				40,980,516
Multiple Industry - 5.74%
DiamondRock Hospitality Company		323,900		3,873,844
Eagle Hospitality Properties Trust, Inc.		103,700		791,231
Education Realty Trust, Inc.		313,600		4,042,304
NorthStar Realty Finance Corp.		445,800		4,542,702
Republic Property Trust*		117,300		1,407,600
Sunstone Hotel Investors, Inc.		207,200		5,505,304
U-Store-It Trust		198,000		4,167,900
				24,330,885
Real Estate Investment Trust - 77.97%
Alexandria Real Estate Equities, Inc.		56,000		4,508,000
American Campus Communities, Inc.		282,100		6,996,080
Archstone-Smith Trust		182,800		7,657,492
AvalonBay Communities, Inc.		105,800		9,442,650
BioMed Realty Trust, Inc.		388,712		9,484,573
Boston Properties, Inc.		109,400		8,109,822
Brandywine Realty Trust		341,700		9,536,847
CBL & Associates Properties, Inc.		43,700		1,726,587
Camden Property Trust		203,100		11,763,552
Columbia Equity Trust, Inc.		133,800		2,160,870
Cousins Properties Incorporated		187,200		5,297,760
Developers Diversified Realty Corporation		334,100		15,709,382
Equity Lifestyle Properties, Inc.		52,100		2,318,450
Equity Office Properties Trust		70,000		2,123,100
Equity One, Inc.		314,200		7,264,304
Equity Residential		376,800		14,740,416
Essex Property Trust, Inc.		38,500		3,549,700
Extra Space Storage Inc.		228,934		3,525,584
First Industrial Realty Trust, Inc.		161,300		6,210,050
First Potomac Realty Trust		95,300		2,534,980
General Growth Properties, Inc.		367,540		17,270,705
Gramercy Capital Corp.		144,000		3,280,320
Hersha Hospitality Trust		257,300		2,318,273
Home Properties, Inc.		61,800		2,521,440
Host Marriott Corporation		359,100		6,804,945
Innkeepers USA Trust		95,400		1,526,400
Kilroy Realty Corporation		16,900		1,046,110
Kimco Realty Corporation		411,700		13,207,336
Kite Realty Group Trust		553,600		8,564,192
Liberty Property Trust		96,000		4,113,600
Maguire Properties, Inc.		176,600		5,456,940
Mills Corporation (The)		178,600		7,490,484
Newcastle Investment Corp.		120,600		2,996,910
Pan Pacific Retail Properties, Inc.		32,900		2,200,681
ProLogis		627,665		29,324,509
Public Storage, Inc.		103,300		6,995,476
Regency Centers Corporation		83,000		4,892,850
SL Green Realty Corp.		23,700		1,810,443
Simon Property Group, Inc.		316,900		24,284,047
Spirit Finance Corporation		408,400		4,635,340
Spirit Finance Corporation (A)		70,700		802,445
Strategic Hotel Capital, L.L.C.		282,500		5,813,850
Trizec Properties, Inc.		507,200		11,625,024
United Dominion Realty Trust, Inc.		367,042		8,603,464
Ventas, Inc.		179,700		5,753,994
Vornado Realty Trust		118,500		9,891,195
Winston Hotels, Inc.		267,300		2,646,270
				330,537,442
Retail -- Specialty Stores - 0.95%
Forest City Enterprises, Inc., Class A		105,678		4,008,366
TOTAL COMMON STOCKS - 97.97%			$	415,311,535
(Cost: $334,568,954)
SHORT-TERM SECURITIES	Principal Amount in Thousands
Banks - 1.30%
Rabobank USA Financial Corp. (Rabobank Nederland),
4.125%, 1-3-06	$	5,533		5,531,732
Security and Commodity Brokers - 0.73%
Greenwich Capital Holdings Inc. (Royal Bank of       Scotland PLC (The)),
4.2%, 1-3-06		3,094		3,093,278
TOTAL SHORT-TERM SECURITIES - 2.03%			$	8,625,010
(Cost: $8,625,010)
TOTAL INVESTMENT SECURITIES - 100.00%			$	423,936,545
(Cost: $343,193,964)

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

(A)Security was 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. At December 31, 2005, the total value of this security amounted to 0.19% of total investments.

The Investments of Ivy Small Cap Value Fund
December 31, 2005
COMMON STOCKS	Shares			Value
Banks - 9.65%
Cathay General Bancorp		30,300	$	1,088,830
Central Pacific Financial Corp.		31,600		1,135,072
First Niagara Financial Group, Inc.	113,800			1,648,393
Gold Banc Corporation, Inc.	128,000			2,334,080
Taylor Capital Group, Inc.		21,300		857,645
Trustmark Corporation		59,500		1,634,168
Umpqua Holdings Corporation		42,300		1,204,070
Wintrust Financial Corporation		31,400		1,721,662
				11,623,920
Business Equipment and Services - 7.38%
Brink's Company (The)		80,600		3,861,546
CACI International Inc*		13,400		768,892
Heidrick & Struggles International, Inc.*		17,400		557,235
Laidlaw International, Inc.		82,800		1,923,444
Lennox International Inc.		63,100		1,779,420
				8,890,537
Capital Equipment - 1.30%
Actuant Corporation, Class A		28,100		1,567,980
Chemicals -- Specialty - 1.19%
Airgas, Inc.		43,400		1,427,860
Coal - 1.74%
Foundation Coal Holdings, Inc.		55,000		2,090,000
Communications Equipment - 2.13%
Dycom Industries, Inc.*		57,700		1,269,400
Polycom, Inc.*		34,800		531,744
Tekelec*		55,000		763,950
				2,565,094
Computers -- Peripherals - 3.01%
Borland Software Corporation*	173,700			1,133,392
Electronics for Imaging, Inc.*		33,300		884,115
Imation Corp.		26,100		1,202,427
TIBCO Software Inc.*		55,029		410,791
				3,630,725
Construction Materials - 2.12%
Walter Industries, Inc.		51,400		2,555,608
Containers - 3.80%
AptarGroup, Inc.		17,600		918,720
Jarden Corporation*		82,250		2,479,838
Packaging Corporation of America		23,200		532,440
Smurfit-Stone Container Corporation*		45,500		644,280
				4,575,278
Cosmetics and Toiletries - 0.33%
Playtex Products, Inc.*		29,200		399,164
Defense - 0.77%
Hexcel Corporation*		51,471		929,052
Electronic Components - 2.55%
Axcelis Technologies, Inc.*	122,000			581,330
Thomas & Betts Corporation*		59,400		2,492,424
				3,073,754
Finance Companies - 1.03%
Hanover Insurance Group, Inc. (The)		29,600		1,236,392
Food and Related - 1.79%
Hain Celestial Group, Inc. (The)*		71,500		1,510,080
Lance, Inc.		34,800		647,628
				2,157,708
Forest and Paper Products - 1.64%
Bowater Incorporated		33,600		1,032,192
OfficeMax Incorporated		37,200		943,392
				1,975,584
Health Care -- Drugs - 1.57%
Andrx Corporation*		50,600		833,635
Par Pharmaceutical Companies, Inc.*		33,600		1,053,024
				1,886,659
Health Care -- General - 2.51%
PolyMedica Corporation		29,200		976,010
Sybron Dental Specialties, Inc.*		51,300		2,042,253
				3,018,263
Hospital Supply and Management - 0.64%
HealthSouth Corporation*	159,100			775,612
Hotels and Gaming - 4.25%
Gaylord Entertainment Company*		54,600		2,380,014
Kerzner International Limited*		21,700		1,491,875
Pinnacle Entertainment, Inc.*		50,400		1,245,384
				5,117,273
Insurance -- Life - 0.83%
Universal American Financial Corp.*		66,300		1,002,124
Insurance -- Property and Casualty - 1.95%
Max Re Capital Ltd.		90,300		2,344,188
Leisure Time Industry - 1.72%
K2 Inc.*		92,100		931,131
RC2 Corporation*		32,200		1,143,261
				2,074,392
Motion Pictures - 0.83%
Regal Entertainment Group		52,800		1,004,256
Motor Vehicle Parts - 0.82%
Tenneco Automotive Inc.*		50,200		984,422
Motor Vehicles - 0.82%
Winnebago Industries, Inc.		29,600		985,088
Multiple Industry - 9.37%
American Commercial Lines Inc.*		45,700		1,385,167
Aspen Insurance Holdings Limited		63,600		1,505,412
Diamond Foods, Inc.*		42,300		835,002
ITC Holdings Corp.		40,100		1,126,409
K&F Industries Holdings, Inc.*		51,700		794,112
Maidenform Brands, Inc.*		38,401		486,157
New York & Company, Inc.*		27,034		573,121
NorthWestern Corporation		54,300		1,684,658
Platinum Underwriters Holdings, Ltd.		41,400		1,286,298
U-Store-It Trust		76,700		1,614,535
				11,290,871
Non-Residential Construction - 2.04%
Washington Group International, Inc.		46,400		2,457,576
Petroleum -- Domestic - 2.29%
Comstock Resources, Inc.*		31,100		948,861
Whiting Petroleum Corporation*		45,278		1,811,120
				2,759,981
Publishing - 2.18%
Banta Corporation		52,700		2,624,460
Real Estate Investment Trust - 2.21%
Accredited Home Lenders Holding Co.*		21,019		1,041,702
HomeBanc Corp.	119,500			893,860
Trustreet Properties, Inc.		49,800		728,076
				2,663,638
Restaurants - 2.64%
Landry's Restaurants, Inc.		36,700		980,257
Lone Star Steakhouse & Saloon, Inc.		49,600		1,176,016
Triarc Companies, Inc.		61,400		1,027,836
				3,184,109
Retail -- General Merchandise - 3.28%
BJ's Wholesale Club, Inc.*		63,200		1,868,192
Saks Incorporated*		58,100		979,566
Stage Stores, Inc.		36,950		1,100,186
				3,947,944
Retail -- Specialty Stores - 5.09%
Children's Place Retail Stores, Inc. (The)*		32,000		1,580,000
Finish Line, Inc. (The), Class A		65,100		1,133,716
Handleman Company		46,873		582,163
Linens 'n Things, Inc.*		65,000		1,729,000
Sports Authority, Inc. (The)*		35,600		1,108,228
				6,133,107
Savings and Loans - 1.42%
Sterling Financial Corporation		68,500		1,710,787
Security and Commodity Brokers - 4.00%
Affiliated Managers Group, Inc.*		36,200		2,905,050
National Financial Partners Corp.		36,500		1,918,075
				4,823,125
Steel - 0.76%
Lone Star Technologies, Inc.*		17,600		909,216
Timesharing and Software - 2.36%
FileNet Corporation*		30,700		793,134
Hyperion Solutions Corporation*		34,200		1,223,334
Per-Se Technologies, Inc.*		35,600		831,438
				2,847,906
Utilities -- Electric - 2.64%
Black Hills Corporation		21,000		726,810
El Paso Electric Company*		53,900		1,134,056
PNM Resources, Inc.		54,000		1,322,460
				3,183,326
Utilities -- Telephone - 0.50%
UbiquiTel Inc.*		60,900		601,996
TOTAL COMMON STOCKS - 97.15%			$	117,028,975
(Cost: $108,115,101)
SHORT-TERM SECURITY - 2.85%	Principal Amount in Thousands
Security and Commodity Brokers
Greenwich Capital Holdings Inc. (Royal Bank of       Scotland PLC (The)),
4.2%, 1-3-06	$	3,438	$	3,437,198
(Cost: $3,437,198)
TOTAL INVESTMENT SECURITIES - 100.00%			$	120,466,173
(Cost: $111,552,299)

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

The Investments of Ivy Value Fund
December 31, 2005
COMMON STOCKS	Shares			Value
Aircraft - 1.54%
Lockheed Martin Corporation		18,800	$	1,196,244
Aluminum - 0.58%
Alcoa Incorporated		15,300		452,421
Banks - 11.50%
Bank of America Corporation		76,256		3,519,214
Citigroup Inc. (A)		48,113		2,334,924
Mellon Financial Corporation		47,700		1,633,725
Wachovia Corporation		12,050		636,963
Wells Fargo & Company		12,900		810,507
				8,935,333
Beverages - 2.06%
Diageo plc, ADR		13,450		784,135
Molson Coors Brewing Company, Class B		12,200		817,278
				1,601,413
Broadcasting - 1.57%
Viacom Inc., Class B		37,500		1,222,500
Business Equipment and Services - 2.89%
ARAMARK Corporation, Class B		44,100		1,225,098
Waste Management, Inc.		33,700		1,022,795
				2,247,893
Capital Equipment - 1.18%
Illinois Tool Works Inc.		10,440		918,616
Chemicals -- Petroleum and Inorganic - 0.75%
du Pont (E.I.) de Nemours and Company		13,750		584,375
Chemicals -- Specialty - 0.52%
Air Products and Chemicals, Inc.		6,800		402,492
Communications Equipment - 0.84%
Cisco Systems, Inc.*		38,400		656,064
Computers -- Main and Mini - 1.94%
Hewlett-Packard Company		31,400		898,982
International Business Machines Corporation		7,350		604,170
				1,503,152
Computers -- Peripherals - 2.88%
Adobe Systems Incorporated		10,800		399,006
MICROS Systems, Inc.*		7,300		352,517
Microsoft Corporation		30,600		799,119
Oracle Corporation*		56,000		683,480
				2,234,122
Cosmetics and Toiletries - 0.58%
NBTY, Inc.*		27,800		451,750
Electronic Components - 0.49%
Xilinx, Inc.		15,200		382,584
Finance Companies - 6.57%
Fannie Mae		45,400		2,215,974
Freddie Mac		42,200		2,757,770
Nelnet, Inc., Class A*		3,100		126,108
				5,099,852
Food and Related - 0.71%
J.M. Smucker Company (The)		12,600		554,400
Furniture and Furnishings - 1.77%
Masco Corporation		45,600		1,376,664
Health Care -- Drugs - 1.52%
Pfizer Inc.		50,600		1,179,992
Health Care -- General - 2.74%
Boston Scientific Corporation (A)*		12,000		293,880
Da Vita Inc.*		25,700		1,301,448
Wyeth		11,600		534,412
				2,129,740
Insurance -- Life - 0.99%
UnumProvident Corporation		33,900		771,225
Insurance -- Property and Casualty - 7.05%
Allstate Corporation (The)		25,200		1,362,564
Assurant, Inc.		34,900		1,517,801
Everest Re Group, Ltd.		9,200		923,220
St. Paul Companies, Inc. (The)		37,452		1,672,981
				5,476,566
Leisure Time Industry - 1.21%
Cendant Corporation		54,400		938,400
Motion Pictures - 2.10%
News Corporation Limited, Class A		67,100		1,043,405
Time Warner Inc. (A)		33,500		584,240
				1,627,645
Multiple Industry - 5.34%
General Electric Company		74,600		2,614,730
Genworth Financial, Inc.		21,000		726,180
NRG Energy, Inc.*		17,100		805,752
				4,146,662
Petroleum -- International - 13.35%
Burlington Resources Inc.		16,100		1,387,820
ChevronTexaco Corporation		50,000		2,838,500
ConocoPhillips		21,000		1,221,780
Devon Energy Corporation		24,000		1,500,960
Exxon Mobil Corporation		60,906		3,421,090
				10,370,150
Petroleum -- Services - 0.40%
Patterson-UTI Energy, Inc.		9,500		312,407
Publishing - 0.54%
Gannett Co., Inc.		6,950		420,961
Railroad - 1.96%
Union Pacific Corporation		18,900		1,521,639
Retail -- Food Stores - 0.94%
CVS Corporation		15,800		417,436
Rite Aid Corporation*		88,700		308,676
				726,112
Retail -- General Merchandise - 3.13%
Dollar General Corporation		60,150		1,147,061
Family Dollar Stores, Inc.		51,700		1,281,643
				2,428,704
Security and Commodity Brokers - 7.34%
Marsh & McLennan Companies, Inc. (A)		35,100		1,114,776
Merrill Lynch & Co., Inc.		11,700		792,441
Morgan (J.P.) Chase & Co.		75,302		2,988,736
Morgan Stanley		14,140		802,304
				5,698,257
Tobacco - 2.11%
Altria Group, Inc.		21,900		1,636,368
Utilities -- Electric - 3.96%
Dominion Resources, Inc.		13,200		1,019,040
Exelon Corporation		20,600		1,094,684
PPL Corporation		32,600		958,440
				3,072,164
Utilities -- Telephone - 4.91%
AT&T Inc.		51,900		1,271,031
Iowa Telecommunications Services, Inc.		47,300		732,677
Sprint Nextel Corporation		48,300		1,128,288
Verizon Communications Inc.		22,700		683,724
				3,815,720
TOTAL COMMON STOCKS - 97.96%			$	76,092,587
(Cost: $67,794,824)
PREFERRED STOCK - 0.12%
Finance Companies
Federal National Mortgage Association, 5.375% Convertible		1	$	91,891
(Cost: $100,000)
SHORT-TERM SECURITY - 1.92%	Principal Amount in Thousands
Security and Commodity Brokers
Greenwich Capital Holdings Inc. (Royal Bank of       Scotland PLC (The)),
4.2%, 1-3-06	$	1,492	$	1,491,652
(Cost: $1,491,652)
TOTAL INVESTMENT SECURITIES - 100.00%			$	77,676,130
(Cost: $69,386,476)

Notes to Schedule of Investments
Certain acronyms are used within the body of the Fund's holdings. The definition of this acronym is as follows: ADR - American Depositary Receipts.
*No dividends were paid during the preceding 12 months.
(A)Security serves as cover for the following written call option outstanding at December 31, 2005:
	Underlying Security	Contracts Subject to Call	Expiration Month/ Exercise Price	Premium Received			Market Value
	Marsh & McLennan       Companies, Inc.	175	February/35		$	9,275	$	4,375
	In addition to the above written call option, the following written put options were outstanding as of December 31, 2005:
	Underlying Security	Contracts Subject to Put	Expiration Month/ Exercise Price	Premium Received				Market Value
	Boston Scientific Corporation	76	February/22.5		$	3,206	$	4,180
	Symantec Corporation	100	January/17			3,050		3,090
	Time Warner Inc.	155	January/17.5			4,495		4,650
					$	10,751	$	11,920

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
(Registrant)

By	/s/Kristen A. Richards
	Kristen A. Richards, Vice President and Secretary

Date: February 28, 2006

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, President and Principal Executive Officer

Date: February 28, 2006

By	/s/Theodore W. Howard
	Theodore W. Howard, Treasurer and Principal Financial Officer

Date: February 28, 2006