N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-1028

Ivy Funds

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(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas                    66202

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(Address of principal executive offices)           (Zip code)

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

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(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, 2006

ITEM 1. SCHEDULE OF INVESTMENTS.

The Investments of Ivy Balanced Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Air Transportation - 0.89%
Southwest Airlines Co.		55,300	$	847,196
Aircraft - 1.54%
Boeing Company (The)		16,600		1,474,744
Banks - 3.62%
Bank of America Corporation		16,600		886,274
Northern Trust Corporation		22,600		1,370,916
Wells Fargo & Company		33,600		1,194,816
				3,452,006
Beverages - 2.43%
Brown-Forman Corporation, Class B		12,400		821,376
PepsiCo, Inc.		24,000		1,501,200
				2,322,576
Business Equipment and Services - 1.05%
Pitney Bowes Inc.		21,800		1,006,942
Chemicals -- Petroleum and Inorganic - 1.20%
E.I. du Pont de Nemours and Company		23,600		1,149,556
Chemicals -- Specialty - 1.10%
Air Products and Chemicals, Inc.		14,900		1,047,172
Communications Equipment - 4.32%
Cisco Systems, Inc.*		69,800		1,905,191
Nokia Corporation, Series A, ADR		56,200		1,141,984
QUALCOMM Incorporated		28,600		1,080,365
				4,127,540
Computers -- Micro - 1.55%
Apple Computer, Inc.		17,400		1,475,346
Computers -- Peripherals - 1.24%
Microsoft Corporation		39,758		1,186,975
Defense - 2.35%
General Dynamics Corporation		30,200		2,245,370
Electrical Equipment - 1.03%
Emerson Electric Co.		22,400		987,168
Electronic Components - 2.29%
Microchip Technology Incorporated		34,700		1,134,169
Texas Instruments Incorporated		36,500		1,051,200
				2,185,369
Finance Companies - 2.40%
SLM Corporation		46,900		2,287,313
Health Care -- Drugs - 5.69%
Allergan, Inc.		11,100		1,329,114
Amgen Inc.*		13,500		922,522
Gilead Sciences, Inc.*		15,900		1,031,831
Novartis AG, ADR		16,100		924,784
Pfizer Inc.		47,200		1,222,480
				5,430,731
Health Care -- General - 4.99%
Biomet, Inc.		27,400		1,129,976
DENTSPLY International Inc.		35,000		1,045,275
Johnson & Johnson		26,200		1,729,724
Zimmer Holdings, Inc.*		10,900		854,342
				4,759,317
Hospital Supply and Management - 2.42%
Community Health Systems, Inc.*		31,300		1,143,076
Medtronic, Inc.		21,800		1,166,518
				2,309,594
Household -- General Products - 1.80%
Colgate-Palmolive Company		26,300		1,715,812
Insurance -- Life - 1.11%
Aflac Incorporated		23,000		1,058,000
Insurance -- Property and Casualty - 1.15%
Berkshire Hathaway Inc., Class B*		300		1,099,800
Leisure Time Industry - 1.07%
Time Warner Inc.		47,100		1,025,838
Motion Pictures - 1.43%
News Corporation Limited, Class A		63,400		1,361,832
Multiple Industry - 4.58%
Altria Group, Inc.		9,800		841,036
General Electric Company		63,680		2,369,533
Las Vegas Sands, Inc.*		13,000		1,163,240
				4,373,809
Non-Residential Construction - 1.00%
Fluor Corporation		11,700		955,305
Petroleum -- International - 4.98%
BP p.l.c., ADR		19,000		1,274,900
ChevronTexaco Corporation		13,500		992,655
Exxon Mobil Corporation		32,400		2,482,812
				4,750,367
Petroleum -- Services - 2.65%
Schlumberger Limited		23,700		1,496,892
Smith International, Inc.		25,200		1,034,964
				2,531,856
Publishing - 1.19%
Meredith Corporation		20,100		1,132,635
Retail -- General Merchandise - 1.96%
Target Corporation		15,000		855,750
Wal-Mart Stores, Inc.		21,900		1,011,342
				1,867,092
Retail -- Specialty Stores - 0.76%
Best Buy Co., Inc.		14,800		728,012
Security and Commodity Brokers - 4.93%
American Express Company		17,800		1,079,926
Chicago Mercantile Exchange Holdings Inc.		1,500		764,625
J.P. Morgan Chase & Co.		26,800		1,294,440
UBS AG		26,000		1,568,580
				4,707,571
Timesharing and Software - 1.09%
Paychex, Inc.		26,400		1,043,196
Trucking and Shipping - 0.92%
Expeditors International of Washington, Inc.		21,700		878,416
Utilities -- Electric - 1.69%
Exelon Corporation		26,000		1,609,140
Utilities -- Telephone - 1.43%
AT&T Inc.		38,100		1,362,075
TOTAL COMMON STOCKS - 73.85%			$	70,495,671
(Cost: $54,444,066)

CORPORATE DEBT SECURITIES	Principal Amount in Thousands
Banks - 0.28%
Wells Fargo Bank, N.A.,
7.55%, 6-21-10	$	250		267,948
Beverages - 0.36%
Diageo Capital plc,
3.5%, 11-19-07		350		344,647
Finance Companies - 2.47%
American International Group,
3.85%, 11-26-07 (A)		500		493,299
Banco Hipotecario Nacional:
7.916%, 7-25-09 (A)		7		162
8%, 3-31-11 (A)		244		65,876
First Union-Lehman Brothers-Bank of America Commercial       Mortgage Trust,
6.56%, 11-18-35		381		384,482
General Motors Acceptance Corporation,
6.125%, 8-28-07		300		300,059
Prudential Insurance Company of America,
6.6%, 5-15-08 (A)		750		760,420
Unilever Capital Corporation,
5.9%, 11-15-32		350		352,988
				2,357,286
Food and Related - 1.28%
Archer-Daniels-Midland Company,
7%, 2-1-31		700		805,217
Cargill, Inc.,
6.375%, 6-1-12 (A)		400		417,267
				1,222,484
Insurance -- Life - 0.50%
StanCorp Financial Group, Inc.,
6.875%, 10-1-12		450		473,590
Real Estate Investment Trust - 0.84%
Vornado Realty L.P.,
5.625%, 6-15-07		800		799,470
TOTAL CORPORATE DEBT SECURITIES - 5.73%			$	5,465,425
(Cost: $5,402,740)
OTHER GOVERNMENT SECURITIES - 0.60%
Canada
Hydro-Quebec,
8.0%, 2-1-13		500		568,896
(Cost: $572,183)
UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations - 5.27%
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
6.23%, 1-1-08		419		418,878
6.0%, 9-1-17		411		417,780
5.0%, 1-1-18		464		457,904
5.5%, 4-1-18		401		401,955
6.5%, 10-1-28		148		152,115
6.5%, 2-1-29		33		34,502
7.0%, 5-1-31		31		32,082
7.5%, 5-1-31		55		58,000
7.0%, 7-1-31		46		47,866
7.0%, 9-1-31		49		50,212
7.0%, 9-1-31		68		70,410
7.0%, 11-1-31		156		161,120
6.5%, 2-1-32		173		178,391
7.0%, 2-1-32		101		104,866
7.0%, 2-1-32		187		192,529
6.5%, 3-1-32		51		52,461
7.0%, 3-1-32		108		111,312
7.0%, 6-1-32		34		35,479
7.0%, 7-1-32		214		221,334
6.5%, 8-1-32		88		90,205
6.0%, 9-1-32		660		665,559
6.5%, 9-1-32		152		156,060
5.5%, 5-1-33		129		127,557
5.5%, 5-1-33		187		185,537
5.5%, 6-1-33		298		294,591
5.5%, 5-1-33		319		315,871
				5,034,576
Treasury Obligations - 10.40%
United States Treasury Bonds,
7.5%, 11-15-16		500		607,578
United States Treasury Notes:
3.0%, 2-15-08		900		880,664
4.0%, 3-15-10		800		783,218
4.25%, 10-15-10	2,000			1,969,062
3.875%, 2-15-13	1,250			1,196,338
3.625%, 5-15-13		750		706,670
4.25%, 8-15-13		900		877,430
4.25%, 8-15-15	3,000			2,902,968
				9,923,928
TOTAL UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS - 15.67%			$	14,958,504
(Cost: $15,236,608)
SHORT-TERM SECURITIES
Commerical Paper - 2.06%
Finance Companies
Caterpillar Financial Services Corp.,
5.25%, 1-3-07	1,967			1,966,426
United States Government Obligation - 2.09%
Federal Home Loan Bank,
4.83%, 1-2-07	2,000			1,999,732
TOTAL SHORT-TERM SECURITIES - 4.15%			$	3,966,158
(Cost: $3,966,158)
TOTAL INVESTMENT SECURITIES -100.00%			$	95,454,654
(Cost: $79,621,755)

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.

*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, 2006, the total value of these securities amounted to $1,737,024 or 1.82% of net assets.

The Investments of Ivy Bond Fund
December 31, 2006
PREFERRED STOCKS	Shares			Value
Real Estate Investment Trust
PS Business Parks, Inc., 7.0% Cumulative		10,500	$	267,225
Public Storage, Inc., 6.25% Cumulative		10,500		258,195
TOTAL PREFERRED STOCKS - 0.76%			$	525,420
(Cost: $520,050)

CORPORATE DEBT SECURITIES	Principal Amount in Thousands
Aluminum - 0.27%
Steelcase Inc.,
6.5%, 8-15-11	$	185		187,919
Asset-Backed Securities - 4.51%
ABFS Mortgage Loan Trust 2002-4,
7.423%, 12-15-33		120		120,235
Associates Manufactured Housing Contract Pass-Through       Certificates,
7.725%, 6-15-28		172		173,651
C-Bass 2006-CB2 Trust,
5.86%, 12-25-36		530		534,247
C-Bass 2006-MH1 Trust:
6.24%, 10-25-36 (A)		105		106,369
6.25%, 10-25-36 (A)		170		170,660
Cendant Mortgage Corporation and Bishop's Gate Residential       Mortgage Trust,
6.25%, 6-25-32		128		126,428
Citibank Credit Card Issuance Trust, Class 2005-C1,
5.5%, 3-24-17		200		198,524
CountryPlace Manufactured Housing Contract Trust 2005-1,
5.2%, 12-15-35 (A)		300		287,243
FFCA Secured Lending Corporation,
6.73%, 10-18-25 (A)		12		11,774
Green Tree Financial Corporation:
6.4%, 10-15-18		80		81,447
7.35%, 5-15-27		43		44,534
Home Equity Loan Trust 2003-HS2,
5.09%, 7-25-33 (B)		57		55,884
MMCA Auto Owner:       Trust 2002-2,
4.67%, 3-15-10		38		37,846
Trust 2002-3,
4.6%, 8-17-09		56		56,025
National Collegiate Trust 1997-S2 (The),
7.24%, 9-20-14		213		205,118
Origen Manufactured Housing Contract:       Trust 2004-A,
5.7%, 1-15-35		100		98,665
Trust 2004-B,
5.73%, 11-15-35		50		48,605
Trust 2005-A:
4.49%, 5-15-18		200		197,215
5.86%, 6-15-36		120		116,362
2005-B,
5.605%, 5-15-22		80		79,604
Vanderbilt Mortgage and Finance, Inc.:
8.75%, 1-7-16		43		42,801
6.4%, 3-7-28		147		146,522
WFS Financial 2005-2 Owner Trust,
4.39%, 11-19-12		175		173,194
				3,112,953
Banks - 0.37%
Wells Fargo Mortgage Backed Securities 2001-14 Trust,
5.6%, 3-15-16		250		252,444
Beverages - 0.91%
SABMiller plc,
6.5%, 7-1-16 (A)		600		625,876
Broadcasting - 1.09%
Cox Communications, Inc.,
7.125%, 10-1-12		450		479,730
Viacom Inc.,
6.875%, 4-30-36		275		271,887
				751,617
Business Equipment and Services - 0.95%
HSBC Finance Corporation,
5.7%, 6-1-11		400		406,912
International Lease Finance Corporation,
5.625%, 9-20-13		250		251,826
				658,738
Collateralized Mortgage Obligations - 6.89%
Banc of America:       Alternative Loan Trust 2005-10:
5.66838%, 11-25-35		284		278,793
5.66838%, 11-25-35		137		132,223
Alternative Loan Trust 2005-12:
5.8068%, 1-25-36		304		298,558
5.8068%, 1-25-36		221		204,247
Alternative Loan Trust 2006-4,
6.22492%, 5-25-36		327		324,889
Alternative Loan Trust 2006-8,
6.25036%, 11-25-46		146		134,179
Mortgage Trust 2004-7,
5.75%, 8-25-34		98		97,056
Banco Hipotecario Nacional,
7.916%, 7-25-09 (A)		7		184
BlackRock Capital Finance,
7.75%, 9-25-26 (A)		124		124,264
Charlie Mac Trust 2004-2,
5.0%, 10-25-34		216		207,261
Chase Mortgage Finance Trust, Series 2003-S11,
5.5%, 10-25-33		124		121,823
Credit Suisse First Boston Mortgage Securities Corp.,
6.0%, 11-25-18		53		52,846
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage       Securitization 2005-A LLC:
5.25%, 4-25-32		200		190,926
5.39898%, 4-25-32		296		265,985
Global Mortgage Securitization Ltd. and Global Mortgage       Securitization, LLC:
5.25%, 11-25-32 (A)		309		298,694
5.25%, 11-25-32 (A)		265		257,916
J.P. Morgan Mortgage Trust 2005-S2,
5.66763%, 9-25-35		517		507,435
Lehman XS Trust, Series 2005-8,
5.69%, 12-25-35		585		580,122
MASTR Asset Securitization Trust 2003-10,
5.5%, 11-25-33		190		186,997
RALI Series 2003-QS10 Trust,
5.75%, 5-25-33		246		242,143
Structured Asset Securities Corporation,
5.63%, 5-25-34		250		246,869
				4,753,410
Conduit - 11.44%
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2002-2,
6.2%, 7-11-43 (A)		275		282,883
Bear Stearns Commercial Mortgage Securities Inc.:       Series 1999-WF2:
6.0%, 7-15-31 (A)		500		508,875
6.0%, 7-15-31 (A)		100		102,039
Bear Stearns Commercial Mortgage Securities:       Trust 2004-PWR4,
5.650278%, 6-11-41	1,500			1,510,008
Trust 2002-TOP6,
6.0%, 10-15-36 (A)		320		317,158
CD 2006-CD2 Mortgage Trust,
5.6179%, 1-15-46 (A)		710		715,718
COMM 2006-CNL2:
5.5699%, 2-5-19 (A)		225		223,867
5.5699%, 2-5-19 (A)		95		94,859
Commercial Mortgage Asset Trust,
6.0%, 11-17-32		225		230,211
DLJ Commercial Mortgage Corp. 1998-CG1,
7.405%, 6-10-31 (A)		350		383,589
GE Capital Commercial Mortgatge Corp. 2002-2,
6.039%, 8-11-36 (A)		565		582,925
GS Mortgage Securities Corporation II, Commercial Mortgage       Pass-Through Certificates, Series 2001-LI B,
6.733%, 2-14-16 (A)		225		236,603
Hilton Hotel Pool Trust:
5.85%, 10-3-15 (A)		790		797,946
7.653%, 10-3-15 (A)		430		451,220
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4:
1.05881%, 11-28-35 (Interest Only) (A)	6,450			154,328
5.88%, 11-28-35 (A)		155		148,522
5.88%, 11-28-35 (A)		105		102,669
Nomura Asset Securities Corporation, Commercial Mortgage       Pass-Through Certificates, Series1998-D6,
6.0%, 3-15-30 (A)		300		310,366
Wachovia Bank Commercial Mortgage Trust (The),
4.942%, 11-15-34 (A)		285		274,090
Wachovia Bank Commercial Mortgage Trust Commercial       Mortgage Pass-Through Certificates Series 2006-C26,
6.011%, 6-15-45		450		471,421
				7,899,297
Construction Materials - 1.23%
Crane Co.,
6.55%, 11-15-36		260		255,960
USG Corporation,
6.3%, 11-15-16 (A)		600		594,744
				850,704
Electronic Components - 0.34%
Avnet, Inc.,
6.625%, 9-15-16		225		231,368
Finance Companies - 20.05%
Allied Capital Corporation,
6.625%, 7-15-11		585		594,876
Alternative Loan Trust 2006-J5,
6.5%, 9-25-36		535		542,566
Asset Securitization Corporation:
1.58818%, 10-13-26 (Interest Only) (A)	1,014			48,506
7.8988%, 2-14-43		170		184,743
CHL Mortgage Pass-Through Trust 2004-J4,
5.25%, 5-25-34		697		643,179
CSAB Mortgage-Backed Trust 2006-2,
6.08%, 9-25-36		650		649,978
CSFB Commercial Mortgage Trust 2003-C4,
5.4994%, 8-15-36 (A)		500		485,448
CWHEQ Home Equity Loan Trust, Series 2006-S6,
5.962%, 3-25-34		210		210,087
Caithness Coso Funding Corp.,
5.489%, 6-15-19 (A)		225		221,130
Capital Auto Receivables Asset Trust 2006-1,
7.16%, 1-15-13 (A)		245		247,042
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35		370		358,834
Colonial Bank, N.A.,
6.375%, 12-1-15		500		513,027
ERAC USA Finance Company,
5.9%, 11-15-15 (A)		520		525,412
First Horizon Mortgage Pass-Through Trust 2003-8,
5.12245%, 10-25-33		98		84,322
Ford Credit Auto Owner:       Trust 2006-B,
7.12%, 2-15-13 (A)		140		141,776
Trust 2006-C,
6.89%, 5-15-13		200		200,040
Fund American Companies, Inc.,
5.875%, 5-15-13		510		506,953
General Motors Acceptance Corporation:
6.27375%, 1-16-07		275		274,998
6.75%, 12-1-14		360		369,768
GMACM Home Equity Loan Trust 2006-HE3,
6.088%, 10-25-36		485		487,876
Goldman Sachs Capital I,
6.345%, 2-15-34		435		440,328
Hometown Commercial Capital, LLC Hometown Commercial       Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38		529		530,335
J.P. Morgan Alternative Loan Trust 2006-A7,
5.94167%, 12-25-36		645		645,222
J.P. Morgan Mortgage Acquisition:       Trust 2006-CW2,
6.337%, 8-25-36		590		602,376
Trust 2006-WF1,
6.41%, 7-25-36	1,095			1,119,061
JPMorgan Chase Capital XVIII,
6.95%, 8-17-36		425		459,711
Mellon Residential Funding,
6.75%, 6-26-28		63		63,250
Morgan Stanley Capital I, Inc., Commercial Mortgage       Pass-Through Certificates, Series 1998-XL2,
6.49495%, 10-3-34		500		507,267
RASC Series 2003-KS10 Trust,
6.41%, 12-25-33		129		125,154
Selkirk Cogen Funding Corporation,
8.65%, 12-26-07		135		137,253
St. George Funding Company LLC,
8.485%, 12-29-49 (A)		200		210,116
Symetra Financial Corporation,
6.125%, 4-1-16 (A)		400		404,594
TimberStar Trust I,
6.2082%, 10-15-36 (A)		425		433,251
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.25%, 8-25-33 (A)		276		237,253
				13,205,732
Health Care -- Drugs - 0.64%
AmerisourceBergen Corporation:
5.625%, 9-15-12		150		147,461
5.875%, 9-15-15		125		122,222
Cardinal Health, Inc.,
5.85%, 12-15-17		175		174,016
				443,699
Hospital Supply and Management - 0.71%
Laboratory Corporation of America Holdings:
5.5%, 2-1-13		215		207,235
5.625%, 12-15-15		285		280,183
				487,418
Insurance -- Life - 0.69%
StanCorp Financial Group, Inc.,
6.875%, 10-1-12		450		473,590
Insurance -- Property and Casualty - 0.44%
Commerce Group, Inc. (The),
5.95%, 12-9-13		305		303,296
Leisure Time Industry - 0.96%
AOL Time Warner Inc.,
7.7%, 5-1-32		435		490,807
Time Warner Inc.,
6.5%, 11-15-36		175		174,182
				664,989
Multiple Industry - 1.50%
CRH America, Inc.,
6.0%, 9-30-16		370		373,476
Tyco International Group S.A.,
7.0%, 6-15-28		235		269,661
Western Union Company (The),
5.93%, 10-1-16 (A)		395		391,218
				1,034,355
Petroleum -- Domestic - 0.62%
Williams Partners L.P. and Williams Partners Finance Corporation,
7.25%, 2-1-17 (A)		420		428,400
Petroleum -- Services - 0.81%
Energy Transfer Partners, L.P.:
5.65%, 8-1-12		365		363,464
6.625%, 10-15-36		200		205,934
				569,398
Real Estate Investment Trust - 4.19%
Brandywine Operating Partnership, L.P.,
5.625%, 12-15-10		420		421,530
Equity One, Inc.,
6.25%, 1-15-17		335		341,925
Healthcare Realty Trust Incorporated,
5.125%, 4-1-14		450		429,378
Nationwide Health Properties, Inc.:
6.5%, 7-15-11		175		178,801
6.0%, 5-20-15		265		261,555
Simon Property Group, L.P.,
5.875%, 3-1-17		645		657,041
Vornado Realty L.P.,
5.625%, 6-15-07		600		599,602
				2,889,832
Security and Commodity Brokers - 2.21%
Janus Capital Group Inc.,
5.875%, 9-15-11		320		322,026
Jefferies Group, Inc.,
6.25%, 1-15-36		225		218,262
Morgan Stanley Dean Witter & Co.,
6.75%, 4-15-11		500		528,486
Nuveen Investments, Inc.,
5.5%, 9-15-15		465		455,222
				1,523,996
Textile - 0.55%
Mohawk Industries, Inc.,
6.125%, 1-15-16		380		377,266
Utilities -- Electric - 1.74%
MidAmerican Energy Holdings Company,
6.125%, 4-1-36		475		478,826
Oncor Electric Delivery Company,
7.0%, 9-1-22		450		484,046
Pennsylvania Electric Company,
5.125%, 4-1-14		250		241,146
				1,204,018
Utilities -- Gas and Pipeline - 0.67%
Northwest Pipeline Corporation,
7.0%, 6-15-16		440		459,800
Utilities -- Telephone - 0.95%
Sprint Nextel Corporation,
6.0%, 12-1-16		675		657,873
TOTAL CORPORATE DEBT SECURITIES - 64.73%			$	44,047,988
(Cost: $44,124,823)
MUNICIPAL OBLIGATIONS -- TAXABLE - 0.14%
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		95	$	95,052
(Cost: $95,000)
UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations - 3.72%
Federal Home Loan Bank,
4.83%, 1-2-07	1,500			1,499,799
Federal National Mortgage Association:
3.0%, 3-2-07		640		637,704
4.25%, 5-15-09		500		491,995
5.125%, 1-2-14		575		573,492
				3,202,990
Mortgage-Backed Obligations - 23.07%
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates:
3.5%, 2-15-30		125		118,002
6.5%, 9-1-32		232		239,034
6.0%, 11-1-33		480		484,789
5.5%, 5-1-34		194		191,898
5.5%, 5-1-34		145		143,728
5.5%, 6-1-34	1,598			1,582,435
5.5%, 9-1-34		159		157,841
5.0%, 9-1-34		42		40,734
5.5%, 10-1-34		370		366,517
5.5%, 7-1-35		244		241,095
5.5%, 7-1-35		451		446,150
5.5%, 10-1-35		609		602,239
Federal National Mortgage Association Fixed Rate Pass-Through       Certificates:
6.23%, 1-1-08		140		139,626
5.5%, 1-1-17		197		197,083
6.0%, 9-1-17		107		108,623
5.5%, 3-1-18		114		114,159
5.0%, 6-1-18		437		430,866
5.0%, 7-1-18		155		153,315
7.5%, 5-1-31		128		133,799
7.0%, 9-1-31		45		46,195
7.0%, 11-1-31		87		89,511
6.5%, 12-1-31		55		57,153
7.0%, 2-1-32		85		87,513
7.0%, 3-1-32		92		94,555
6.5%, 4-1-32		25		25,556
6.5%, 5-1-32		26		27,142
6.5%, 7-1-32		69		71,277
6.5%, 8-1-32		64		65,743
6.5%, 8-1-32		57		58,356
6.5%, 9-1-32		95		98,195
6.5%, 9-1-32		40		41,568
6.0%, 10-1-32		130		131,247
6.5%, 10-1-32		118		121,704
6.0%, 11-1-32		139		140,908
6.0%, 3-1-33		103		104,541
5.5%, 4-1-33		168		166,741
6.0%, 4-1-33		219		220,641
5.5%, 5-1-33		125		123,789
6.0%, 10-1-33		211		212,497
5.5%, 1-1-34		122		120,304
5.5%, 1-1-34		118		117,223
6.0%, 1-1-34	1,175			1,182,710
6.0%, 1-1-34		509		513,446
5.5%, 3-1-34		168		166,855
5.5%, 3-1-34		73		72,286
5.5%, 4-1-34		178		176,083
5.5%, 4-1-34		55		54,716
5.0%, 5-1-34		74		71,196
5.5%, 5-1-34		149		146,917
5.5%, 11-1-34	1,411			1,395,884
6.0%, 11-1-34		895		901,702
5.5%, 1-1-35		340		335,963
5.5%, 2-1-35		214		211,851
4.5%, 3-1-35		495		463,899
5.0%, 7-1-35		209		202,088
5.0%, 7-1-35		103		99,141
5.0%, 7-1-35		87		83,730
5.0%, 7-1-35		52		50,435
4.5%, 9-1-35		433		406,287
5.5%, 10-1-35	1,005			994,446
Government National Mortgage Association Agency REMIC/CMO,
0.96953%, 6-17-45 (Interest Only)	5,134			283,935
				15,927,862
Treasury Inflation Protected Obligations - 1.69%
United States Treasury Notes,
1.875%, 7-15-13 (B)	1,100			1,167,635
Treasury Obligations - 3.78%
United States Treasury Bonds,
5.375%, 2-15-31		15		16,068
United States Treasury Notes:
2.75%, 8-15-07		800		788,875
3.375%, 10-15-09 (C)	1,400			1,350,672
4.625%, 11-15-16		460		456,982
				2,612,597
TOTAL UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS - 32.26%			$	22,273,378
(Cost: $23,129,462)
SHORT-TERM SECURITIES - 2.11%
Finance Companies
Caterpillar Financial Services Corp.,
5.25%, 1-3-07	1,459		$	1,458,574
(Cost: $1,458,574)
TOTAL INVESTMENT SECURITIES - 100.00%			$	69,038,118
(Cost: $69,327,909)

Notes to Schedule of Investments
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.
(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, 2006, the total value of these securities amounted to $11,939,527 or 17.29% of net assets.
(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.
(C)Security serves as collateral for the following open futures contracts at December 31, 2006.
	Type	Number of Contracts	Expiration Date		Market Value	Unrealized Appreciation (Depreiation)
	United States 2 Year       Treasury Note - Long	22	3-30-07	$	4,488,688		$	(11,797	)
	United States 5 Year       Treasury Note - Short	2	3-30-07		(210,125	)		1,771
	United States 10 Year       Treasury Note - Short	65	3-30-07		(6,985,469	)		60,214
	United States 30 Year       Treasury Note - Short	5	3-21-07		(557,188	)		7,475
				$	(3,264,094	)	$	57,663

The Investments of Ivy Cundill Global Value Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Canada - 9.10%
BCE Inc. (A)		1,815,800	$	48,892,612
Fairfax Financial Holdings Limited (A)		201,300		39,990,714
				88,883,326
Germany - 1.33%
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A)		75,184		13,001,259
Hong Kong - 3.06%
First Pacific Company Limited (A)(B)	57,628,000			29,931,620
Italy - 4.59%
Italmobiliare S.p.A., Non-Convertible Savings       Shares (A)(B)		521,786		44,853,415
Japan - 37.60%
ACOM CO., LTD. (A)		999,280		33,587,832
AIFUL Corporation (A)		887,650		24,987,417
Asatsu-DK Inc. (A)		842,300		26,754,288
Coca-Cola West Holdings Company, Limited (A)		1,879,200		43,504,021
Kirin Brewery Company, Limited (A)		2,745,000		43,156,968
Mabuchi Motor Co., Ltd. (A)		456,100		27,134,893
Millea Holdings, Inc. (A)		265,400		9,366,665
Nikko Cordial Corporation (A)		4,418,500		50,680,665
Nippon Television Network Corporation (A)		202,420		30,038,546
TV Asahi Corporation (A)		14,313		28,504,525
Takefuji Corporation (A)		1,257,480		49,768,756
				367,484,576
Singapore - 4.49%
Singapore Press Holdings Limited (A)	15,738,000			43,917,614
South Korea - 13.97%
Korea Electric Power Corporation (A)		986,044		44,955,124
Korea Investment Holdings Co., Ltd. (A)		955,000		47,544,624
Korea Tobacco & Ginseng Corporation (A)		725,400		44,070,000
				136,569,748
United States - 4.87%
DIRECTV Group, Inc. (The)*		1,907,142		47,564,121
TOTAL COMMON STOCKS - 79.01%			$	772,205,679
(Cost: $659,089,089)

UNREALIZED GAIN (LOSS) ON OPEN       FORWARD CURRENCY CONTRACTS - 0.84%		Face Amount in Thousands
Euro, 1-19-07 (C)	EUR8,914				(406,833	)
Euro, 3-23-07 (C)			29,672		(1,062,645	)
Japanese Yen, 1-29-07 (C)	JPY16,183,235				9,079,091
Japanese Yen, 3-23-07 (C)	19,310,512				4,251,389
Singapore Dollar, 1-19-07 (C)	SGD21,275				(397,015	)
Singapore Dollar, 3-23-07 (C)			34,840		(503,538	)
South Korean Won, 1-19-07 (C)	KRW46,271,306				(1,150,921	)
South Korean Won, 3-23-07 (C)	52,495,743				(1,509,572	)
South Korean Won, 3-27-07 (C)	14,152,244				(100,395	)
				$	8,199,561

SHORT-TERM SECURITIES	Principal Amount in Thousands
Repurchase Agreements
J.P. Morgan Securities Inc., 4.7% Repurchase       Agreement dated 12-29-06 to be repurchased       at $184,932,641 on1-3-07 (D)	$	184,812		184,812,000
J.P. Morgan Securities Inc., 4.7% Repurchase       Agreement dated 12-29-06 to be repurchased       at $12,075,878 on1-3-07 (E)		12,068		12,068,000
TOTAL SHORT-TERM SECURITIES - 20.15%			$	196,880,000
(Cost: $196,880,000)
TOTAL INVESTMENT SECURITIES - 100.00%			$	977,285,240
(Cost: $855,969,089)

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, 2006, the total value of these securities amounted to $74,785,035 or 7.65% of total investments.

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

(D)Collateralized by $163,000,000 United States Treasury Bond, 6.0% due 2-15-26; market value and accrued interest aggregate $188,708,164.

(E)Collateralized by $9,684,000 United States Treasury Bond, 7.125% due 2-15-23; market value and accrued interest aggregate $12,322,285.

The Investments of Ivy Dividend Income Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Aircraft - 4.06%
Boeing Company (The)		31,100	$	2,762,924
Goodrich Corporation		29,450		1,341,447
Raytheon Company		23,600		1,246,080
				5,350,451
Banks - 3.24%
Bank of America Corporation		54,350		2,901,747
Mellon Financial Corporation		15,400		649,110
Wells Fargo & Company		20,350		723,646
				4,274,503
Beverages - 2.66%
Diageo plc, ADR		27,700		2,196,887
PepsiCo, Inc.		20,900		1,307,295
				3,504,182
Capital Equipment - 3.67%
Caterpillar Inc.		18,150		1,113,139
Deere & Company		39,250		3,731,497
				4,844,636
Chemicals -- Petroleum and Inorganic - 3.44%
E.I. du Pont de Nemours and Company		29,350		1,429,638
Monsanto Company		31,850		1,673,081
UAP Holding Corp.		57,100		1,436,922
				4,539,641
Chemicals -- Specialty - 1.56%
Air Products and Chemicals, Inc.		29,350		2,062,718
Computers -- Peripherals - 2.66%
Microsoft Corporation		42,200		1,259,881
SAP Aktiengesellschaft, ADR		42,300		2,246,130
				3,506,011
Electrical Equipment - 0.45%
Emerson Electric Co.		13,350		588,334
Electronic Components - 0.79%
Microchip Technology Incorporated		31,850		1,041,017
Finance Companies - 2.14%
Rio Tinto plc, ADR		2,950		626,846
SLM Corporation		44,955		2,192,455
				2,819,301
Health Care -- Drugs - 1.53%
Novartis AG, ADR		9,700		557,168
Pfizer Inc.		56,250		1,456,875
				2,014,043
Health Care -- General - 1.00%
Johnson & Johnson		19,900		1,313,798
Hospital Supply and Management - 1.14%
Medtronic, Inc.		28,050		1,500,956
Hotels and Gaming - 2.90%
Harrah's Entertainment, Inc.		17,900		1,480,688
Starwood Hotels & Resorts Worldwide, Inc.		37,600		2,350,000
				3,830,688
Household -- General Products - 4.84%
Colgate-Palmolive Company		39,000		2,544,360
Fortune Brands, Inc.		15,250		1,302,197
Procter & Gamble Company (The)		39,450		2,535,452
				6,382,009
Insurance -- Life - 0.96%
Aflac Incorporated		27,600		1,269,600
Insurance -- Property and Casualty - 3.19%
ACE Limited		10,100		611,757
Allstate Corporation (The)		23,800		1,549,618
Everest Re Group, Ltd.		5,750		564,133
St. Paul Companies, Inc. (The)		27,550		1,479,160
				4,204,668
Metal Fabrication - 1.15%
Loews Corporation, Carolina Group		23,500		1,520,920
Mining - 0.59%
Phelps Dodge Corporation		6,500		778,180
Multiple Industry - 7.33%
3M Company		12,700		989,711
Altria Group, Inc.		39,500		3,389,890
Douglas Emmett, Inc.*		35,350		939,956
General Electric Company		99,900		3,717,279
NYMEX Holdings, Inc.*		5,050		626,251
				9,663,087
Non-Residential Construction - 1.98%
Fluor Corporation		31,900		2,604,635
Petroleum -- International - 5.97%
Anadarko Petroleum Corporation		40,750		1,773,440
Apache Corporation		12,300		818,073
BP p.l.c., ADR		12,550		842,105
Exxon Mobil Corporation		49,500		3,793,185
Marathon Oil Corporation		6,950		642,875
				7,869,678
Petroleum -- Services - 10.04%
BJ Services Company		35,750		1,048,190
Baker Hughes Incorporated		37,950		2,833,347
Grant Prideco, Inc.*		21,500		855,055
National Oilwell Varco, Inc.*		20,700		1,266,426
Schlumberger Limited		58,800		3,713,808
Transocean Inc.*		16,100		1,302,329
Valero GP Holdings, LLC*		51,900		1,288,158
Weatherford International Ltd.*		22,200		927,738
				13,235,051
Railroad - 1.36%
Burlington Northern Santa Fe Corporation		7,350		542,503
Union Pacific Corporation		13,600		1,251,472
				1,793,975
Real Estate Investment Trust - 3.24%
Host Hotels & Resorts, Inc.		40,171		986,198
ProLogis		20,750		1,260,978
Simon Property Group, Inc.		20,050		2,030,865
				4,278,041
Restaurants - 0.97%
McDonald's Corporation*		28,850		1,278,920
Retail -- General Merchandise - 0.44%
Federated Department Stores, Inc.		15,062		574,314
Security and Commodity Brokers - 8.71%
AllianceBernstein Holding L.P.		48,250		3,879,300
Chicago Mercantile Exchange Holdings Inc.		7,250		3,695,687
J.P. Morgan Chase & Co.		54,602		2,637,277
UBS AG		21,050		1,269,947
				11,482,211
Tobacco - 1.23%
Reynolds American Inc.		24,700		1,617,109
Trucking and Shipping - 1.46%
United Parcel Service, Inc., Class B		25,600		1,919,488
Utilities -- Electric - 1.78%
Dominion Resources, Inc.		13,700		1,148,608
NRG Energy, Inc.*		21,350		1,195,814
				2,344,422
Utilities -- Gas and Pipeline - 2.17%
Enbridge Inc.		33,250		1,143,800
Kinder Morgan, Inc.		16,300		1,723,725
				2,867,525
Utilities -- Telephone - 3.24%
BellSouth Corporation		25,150		1,184,816
Iowa Telecommunications Services, Inc.		76,950		1,516,684
Windstream Corporation	110,550			1,572,021
				4,273,521
TOTAL COMMON STOCKS - 91.89%			$	121,147,633
(Cost: $98,747,073)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Commercial Paper
Capital Equipment - 1.51%
Deere (John) Credit Limited (Deere (John)             Capital Corporation),
5.34%, 1-10-07	$	2,000		1,997,330
Finance Companies - 1.52%
PACCAR Financial Corp.,
5.3%, 1-3-07		2,000		1,999,411
Household -- General Products - 1.67%
Fortune Brands, Inc.,
5.37%, 1-2-07		2,199		2,198,672
Utilities -- Electric - 1.52%
Detroit Edison Co.,
5.42%, 1-4-07		2,000		1,999,097
Utilities -- Gas and Pipeline - 1.13%
Michigan Consolidated Gas Co.,
5.36%, 1-3-07		1,500		1,499,553
Total Commercial Paper - 7.35%				9,694,063
Municipal Obligation - 0.76%
California
County of Sacramento, Taxable Pension Funding Bonds,             Series 1995B (Bayerische Landesbank Girozentrale,             New York Branch),
5.38%, 7-1-20		1,000		1,000,000
TOTAL SHORT-TERM SECURITIES - 8.11%			$	10,694,063
(Cost: $10,694,063)
TOTAL INVESTMENT SECURITIES - 100.00%			$	131,841,696
(Cost: $109,441,136)

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.

*No dividends were paid during the preceding 12 months.

The Investments of Ivy European Opportunities Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Argentina - 1.05%
NDS Group plc, ADR*		100,000	$	4,830,500
Austria - 4.03%
AGRANA Beteiligungs-AG (A)		47,000		4,578,708
OMV Aktiengesellschaft (A)		180,000		10,214,771
Telekom Austria Aktiengesellschaft (A)		138,000		3,697,974
				18,491,453
Bermuda - 2.43%
SeaDrill Limited (A)*		659,611		11,134,215
France - 7.80%
Amboise Investissement (A)*		128,521		2,086,738
Compagnie Generale des Etablissements Michelin, Class B (A)		53,000		5,072,272
France Telecom (A)		360,000		9,955,778
Gaz de France (A)		145,304		6,684,502
Peugeot S.A. (A)		108,070		7,161,394
Sanofi-Aventis (A)		52,534		4,850,839
				35,811,523
Germany - 16.06%
Commerzbank Aktiengesellschaft (A)		314,903		11,950,975
Deutsche Post AG (A)		426,934		12,905,800
E.ON AG (A)		47,089		6,420,464
Hypo Real Estate Holding AG (A)		159,825		10,057,234
KARSTADT QUELLE Aktiengesellschaft (A)*		177,313		5,144,663
Pfleiderer Ag, Registered Shares (A)		425,982		11,398,132
SAP Aktiengesellschaft (A)		111,944		5,961,086
SGL Carbon AG (A)*		108,370		2,683,679
Siemens AG (A)		72,000		7,185,268
				73,707,301
Greece - 7.74%
Alpha Bank (A)		357,747		10,814,344
Coca-Cola Hellenic Bottling Company S.A. (A)		223,867		8,747,229
National Bank of Greece S.A. (A)		222,519		10,251,354
Titan Cement Company S.A. (A)		105,000		5,724,375
				35,537,302
Ireland - 2.09%
CRH public limited company (A)		229,952		9,586,013
Italy - 7.24%
AZIMUT HOLDING S.P.A. (A)		567,000		7,589,440
ENEL S.p.A. (A)	1,028,698			10,612,204
Eni S.p.A. (A)		196,215		6,599,641
Geox S.p.A. (A)(B)		200,000		3,102,105
UniCredito Italiano S.p.A. (A)		610,000		5,346,710
				33,250,100
Luxembourg - 1.62%
SES GLOBAL S.A., Fiduciary Deposit Receipts (A)		418,642		7,454,928
Netherlands - 3.79%
Aalberts Industries N.V. (A)		74,000		6,398,258
Akzo Nobel N.V. (A)		63,712		3,886,386
Trader Media East Limited, GDR*		301,000		3,010,000
Univar N.V. (A)		72,894		4,083,719
				17,378,363
Norway - 6.01%
Bergesen Worldwide Offshore Limited (A)*		679,878		2,856,813
Eitzen Chemical ASA (A)(B)*		847,312		3,465,239
Prosafe ASA (A)		273,855		3,886,991
Sinvest ASA (A)*		214,000		4,599,051
Statoil ASA		482,941		12,799,269
				27,607,363
Spain - 9.57%
Altadis, S.A. (A)		193,581		10,131,987
Banco Bilbao Vizcaya Argentaria, S.A. (A)		323,800		7,796,333
Banco Santander Central Hispano, S.A. (A)		476,647		8,896,823
Enagas, S.A. (A)		245,022		5,699,013
Telefonica, S.A. (A)		536,123		11,408,228
				43,932,384
Sweden - 1.08%
Investor AB, B Shares (A)		201,317		4,940,331
Switzerland - 1.41%
Lonza Group Ltd, Registered Shares (A)		75,000		6,481,329
United Kingdom - 22.94%
Admiral Group Plc (A)		228,049		4,907,208
Aurora Russia Limited (A)*	1,110,000			1,966,891
Enterprise Inns plc (A)		160,000		4,238,639
Evolution Group Plc (The) (A)	2,592,416			6,522,535
IP Group plc (A)*	1,619,705			4,566,748
Imperial Tobacco Group PLC (A)		230,000		9,051,749
Inmarsat plc (A)		400,026		2,991,991
Investec plc (A)		356,195		4,599,507
Man Group plc (A)		642,000		6,571,094
Northern European Properties Limited (A)*	3,746,184			4,945,131
Old Mutual plc (A)	1,850,000			6,311,799
Omega International Group PLC (A)		270,000		1,564,185
Persimmon plc (A)		100,000		2,987,880
Premier Brands Foods plc (A)		918,000		5,423,737
Punch Taverns plc (A)		318,368		7,972,758
Regal Petroleum plc (A)*		667,000		2,213,626
Regal Petroleum plc (A)(B)*	1,050,000			3,484,718
Royal Bank of Scotland Group plc (The) (A)		215,377		8,404,565
Travis Perkins plc (A)		194,276		7,546,915
Vodafone Group Plc (A)	3,263,685			9,042,183
				105,313,859
TOTAL COMMON STOCKS - 94.86%			$	435,456,964
(Cost: $322,778,999)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Commercial Paper
Banks - 1.74%
Rabobank USA Financial Corp. (Rabobank Nederland),
5.28%, 1-2-07	$	8,000		7,998,827
Finance Companies - 1.74%
Caterpillar Financial Services Corp.,
5.26%, 1-8-07		8,000		7,991,818
Multiple Industry - 1.34%
Honeywell International Inc.,
5.27%, 1-9-07		6,140		6,132,809
Total Commercial Paper - 4.82%				22,123,454
Commercial Paper (backed by irrevocable bank letter       of credit) - 0.32%
Multiple Industry
Louis Dreyfus Corporation (Barclays Bank PLC,             New York Branch),
5.29%, 2-15-07		1,500		1,490,081
TOTAL SHORT-TERM SECURITIES - 5.14%			$	23,613,535
(Cost: $23,613,535)
TOTAL INVESTMENT SECURITIES - 100.00%			$	459,070,499
(Cost: $346,392,534)

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Portfolio's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.

*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, 2006, the total value of these securities amounted to $10,052,062 or 2.19% of total investments.

The Investments of Ivy Global Natural Resources Fund
December 31, 2006
COMMON STOCKS		Shares			Value
Australia - 1.16%
Lihir Gold Limited (A)*		21,099,800		$	51,963,797
Bermuda - 2.32%
Weatherford International Ltd.*			2,500,000		104,475,000
Brazil - 14.41%
Aracruz Celulose S.A., ADR			701,400		42,953,736
Arcelor Brasil S.A. (A)			700,000		13,760,824
Bradespar S.A. (A)			850,000		40,182,542
CPFL Energia S.A.			850,000		11,935,408
CPFL Energia S.A., ADR			250,000		10,245,000
Companhia Energetica de Minas Gerais - CEMIG, ADR			820,600		39,552,920
Companhia Siderurgica Nacional (A)			1,414,800		42,712,193
Companhia Siderurgica Nacional, ADR			1,000,000		29,980,000
Companhia Vale do Rio Doce, ADR			5,600,000		166,544,000
Companhia Vale do Rio Doce, Class A (A)			699,550		17,713,857
Companhia de Saneamento Basico do Estado de Sao Paulo -       SABESP, ADR			850,000		28,764,000
Cosan S.A. Industria e Comercio (A)*			995,000		20,817,458
EDP Brasil S.A. (A)			450,000		6,950,620
Petroleo Brasileiro S.A. - Petrobras, ADR			225,000		23,172,750
Suzano Bahia Sul Papel E Celulose S.A. (A)		10,525,000			104,437,164
Votorantim Celulose e Papel S.A. (A)			750,000		14,592,792
Votorantim Celulose e Papel S.A., ADR*			1,750,000		34,317,500
					648,632,764
Canada - 7.87%
Barrick Gold Corporation (A)			2,500,000		76,855,465
Cameco Corporation (A)			320,900		12,988,449
Canadian National Railway Company (A)			100,000		4,293,616
Ferus Gas Industries Trust (A)(B)*			615,000		1,845,817
Highpine Oil & Gas Limited (A)*			550,000		7,404,708
IAMGOLD Corporation (A)			9,087,000		80,416,619
Kinross Gold Corporation (A)*			5,200,000		61,625,005
Meridian Gold Inc. (A)*			480,000		13,348,540
Mullen Group Income Fund (A)			574,100		9,201,157
OPTI Canada Inc. (A)*			1,300,000		22,050,337
Pason Systems Inc. (A)			993,600		11,297,977
Peyto Energy Trust (A)			331,500		5,031,557
Pure Energy Services Ltd. (A)*			481,500		5,532,822
Savanna Energy Services Corp. (A)*			800,000		12,993,183
Trican Well Service Ltd. (A)			1,434,700		24,999,446
zed.i solutions inc. (A)*			3,948,300		3,216,469
zed.i solutions inc. (A)(B)*			1,300,000		1,059,040
					354,160,207
Cayman Islands - 3.78%
Noble Corporation			1,700,000		129,455,000
Transocean Inc.*			500,000		40,445,000
					169,900,000
China - 1.09%
China Shenhua Energy Company Limited, H Shares (A)		13,336,100			32,095,933
Suntech Power Holdings Co., Ltd., ADR*			500,000		17,005,000
					49,100,933
France - 2.72%
L'Air Liquide S.A. (A)*			148,700		35,312,692
Vallourec (A)			300,000		87,241,766
					122,554,458
Germany - 1.18%
Siemens AG (A)			175,000		17,464,194
Wacker Chemie AG (A)*			275,000		35,793,017
					53,257,211
Hong Kong - 0.64%
China Gas Holdings Limited (A)	145,001,000				28,894,688
Italy - 0.97%
Eni S.p.A. (A)			1,300,000		43,725,167
Japan - 0.09%
Sumitomo Titanium Corporation (A)			36,000		4,026,385
Mexico - 2.07%
Cemex, S.A. de C.V., ADR*			2,750,000		93,032,500
Peru - 0.31%
Compania de Minas Buenaventura S.A.A., ADR			500,000		14,030,000
Russia - 0.60%
OAO LUKOIL, ADR			150,000		13,110,000
OJSC Rosneft Oil Company*			1,500,000		13,725,000
					26,835,000
South Africa - 4.12%
Gold Fields Limited, ADR			7,000,000		132,160,000
Impala Platinum Holdings Limited (A)			1,600,000		41,977,685
Mvelaphanda Resources Limited (A)*			2,000,000		11,121,805
					185,259,490
South Korea - 0.87%
GS Holdings Corp. (A)			1,215,940		39,354,617
Thailand - 2.65%
Banpu Public Company Limited, Registered Shares (A)			3,292,800		17,369,636
PTT Public Company Limited (A)		10,000,000			59,238,364
Rayong Refinery Public Company Limited (A)*		15,000,000			7,193,230
Thai Oil Public Company Limited (A)		24,000,000			35,543,018
					119,344,248
United Kingdom - 1.14%
Randgold Resources Limited, ADR*			1,500,000		35,160,000
Titanium Resources Group Ltd. (A)*		12,404,200			16,150,986
					51,310,986
United States - 49.83%
Air Products and Chemicals, Inc.			1,900,000		133,532,000
Allegheny Technologies Incorporated			250,000		22,670,000
Alpha Natural Resources, Inc.*			1,000,000		14,230,000
Arch Coal, Inc.			4,200,000		126,126,000
Archer Daniels Midland Company			400,000		12,784,000
Atwood Oceanics, Inc.*			900,000		44,073,000
Aventine Renewable Energy Holdings, Inc.*			1,410,231		33,225,042
Avery Dennison Corporation			93,800		6,371,834
Baker Hughes Incorporated			1,500,000		111,990,000
Bunge Limited			1,000,000		72,510,000
CONSOL Energy Inc.			2,100,000		67,473,000
Cameron International Corporation*			850,000		45,092,500
Celanese Corporation, Series A			1,500,000		38,820,000
ConocoPhillips			2,750,000		197,862,500
Cytec Industries Inc.			500,000		28,255,000
Diamond Offshore Drilling, Inc.			2,000,000		159,880,000
EXCO Resources, Inc.*			500,000		8,455,000
Exxon Mobil Corporation			500,000		38,315,000
First Solar, Inc.*			90,300		2,685,070
Foundation Coal Holdings, Inc.			1,500,000		47,640,000
General Electric Company			1,900,000		70,699,000
GlobalSanteFe Corporation			1,500,000		88,170,000
Grant Prideco, Inc.*			1,250,000		49,712,500
Halliburton Company			2,116,100		65,704,905
Hexcel Corporation*			2,000,000		34,820,000
iShares Silver Trust*			150,000		19,245,000
MEMC Electronic Materials, Inc.*			1,100,000		43,054,000
Nalco Holdings LLC*			1,500,000		30,690,000
Peabody Energy Corporation			3,500,000		141,435,000
Praxair, Inc.			1,500,000		88,995,000
Rowan Companies, Inc.			1,750,000		58,100,000
Smith International, Inc.			2,400,000		98,568,000
TXU Corp.			300,000		16,263,000
Valero Energy Corporation			3,500,000		179,060,000
VeraSun Energy Corporation*			1,600,000		31,600,000
W-H Energy Services, Inc.*			300,000		14,607,000
					2,242,713,351
TOTAL COMMON STOCKS - 97.82%				$	4,402,570,802
(Cost: $3,662,544,652)

CORPORATE DEBT SECURITY - 0.12%		Principal Amount in Thousands
Brazil
Bahia Sul Celulose S.A.
0.0%, 12-1-12 (B)(C)	BRL10,692		$	5,444,683
(Cost: $5,296,076)
UNREALIZED GAIN (LOSS) ON OPEN       FORWARD CURRENCY CONTRACTS - 0.04%		Face Amount in Thousands
Brazilian Real, 1-17-07 (C)	BRL39,000			(384,738	)
Canadian Dollar, 1-17-07 (C)	CAD104,000			2,372,428
Canadian Dollar, 2-7-07 (C)		107,000		1,629,432
South African Rand, 1-17-07 (C)	ZAR171,000			(1,470,897	)
South African Rand, 2-21-07 (C)		42,300		(222,444	)
South African Rand, 3-14-07 (C)		159,000		(205,729	)
			$	1,718,052

SHORT-TERM SECURITIES	Principal Amount in Thousands
Commercial Paper
Banks - 0.20%
Rabobank USA Financial Corp. (Rabobank Nederland),
5.28%, 1-2-07	$	9,000		8,998,680
Electrical Equipment - 0.22%
Emerson Electric Co.,
5.23%, 1-17-07	10,000			9,976,756
Finance Companies - 0.43%
BP Capital Markets p.l.c.,
5.27%, 1-2-07		5,000		4,999,268
Caterpillar Financial Services Corp.,
5.26%, 1-8-07		7,000		6,992,840
Ciesco, LLC,
5.26%, 1-26-07		1,075		1,071,073
PACCAR Financial Corp.,
5.25%, 1-17-07		6,490		6,474,857
				19,538,038
Mining - 0.07%
BHP Billiton Finance (USA) Limited             (BHP Billiton Limited),
5.33%, 1-25-07		3,000		2,989,340
Multiple Industry - 0.13%
Honeywell International Inc.,
5.27%, 1-9-07		5,744		5,737,273
Security and Commodity Brokers - 0.22%
Greenwich Capital Holdings Inc. (Royal Bank of             Scotland PLC (The)),
5.31%, 1-2-07	10,000			9,998,525
Utilities -- Telephone - 0.22%
AT&T Inc.,
5.35%, 1-2-07	10,000			9,998,514
Total Commercial Paper - 1.49%				67,237,126
Municipal Obligations
Arkansas - 0.02%
City of Little Rock, Arkansas, Taxable Variable Rate             Demand Revenue Bonds (Ringwood Containers,             L.P. Project), Series 2006A (SunTrust Bank),
5.4%, 1-3-07		980		980,000
Florida - 0.22%
University of South Florida Research Foundation,             Incorporated, Variable Rate Demand Revenue Bonds             (Multi-Tenant Office Building Project), Taxable             Series 2004C (Bank of America, N.A.),
5.4%, 1-3-07		8,000		8,000,000
University of South Florida Research Foundation,             Incorporated, Variable Rate Demand Revenue Bonds             (Interdisciplinary Research Building Project), Taxable             Series 2004B (Bank of America, N.A.),
5.4%, 1-3-07		1,970		1,970,000
				9,970,000
Kansas - 0.12%
City of Park City, Kansas, Taxable Industrial Revenue             Bonds (The Hayes Company, Inc.), Series 2001             (U.S. Bank, National Association),
5.35%, 1-3-07		5,100		5,100,000
Washington - 0.17%
Washington State Housing Finance Commission, Taxable             (Columbia Heights Retirement Project), Series 2004 B             (Wells Fargo Bank, N.A.),
5.39%, 1-3-07		3,880		3,880,000
Washington State Housing Finance Commission, Taxable             Variable Rate Demand, Multifamily Revenue Bonds             (Heatherwood Apartments Project), Series 2002B,
5.35%, 1-3-07		3,800		3,800,000
				7,680,000
Total Municipal Obligations - 0.53%				23,730,000
TOTAL SHORT-TERM SECURITIES - 2.02%			$	90,967,126
(Cost: $90,967,126)
TOTAL INVESTMENT SECURITIES - 100.00%			$	4,500,700,663
(Cost: $3,758,807,854)

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Portfolio's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.

*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, 2006, the total value of these securities amounted to $8,349,540 or 0.19% of total investments.

(C)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 Balanced Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Australia - 0.74%
National Australia Bank Limited (A)		54,242	$	1,729,757
Belgium - 1.34%
Agfa-Gevaert N.V. (A)		48,830		1,247,903
Belgacom SA (A)		42,790		1,884,895
				3,132,798
Bermuda - 1.26%
ACE Limited		35,680		2,161,138
XL Capital Ltd, Class A		10,870		782,857
				2,943,995
Canada - 1.23%
Barrick Gold Corporation (A)		17,500		537,988
Domtar Inc. (A)*		206,410		1,743,462
Quebecor World Inc. (A)		50,200		581,143
				2,862,593
China - 0.97%
China Telecom Corporation Limited (A)	3,774,000			2,066,935
China Telecom Corporation Limited (A)(B)		360,000		197,164
				2,264,099
Denmark - 1.30%
Vestas Wind Systems A/S (A)*		71,800		3,034,685
Finland - 1.78%
Stora Enso Oyj, Class R (A)		104,960		1,662,623
UPM-Kymmene Corporation (A)		98,830		2,494,396
				4,157,019
France - 6.71%
AXA S.A. (A)		66,870		2,707,284
France Telecom (A)		159,854		4,420,753
Sanofi-Aventis (A)		36,538		3,373,814
THOMSON (A)		179,190		3,503,140
TOTAL S.A. (A)		23,010		1,659,952
				15,664,943
Germany - 4.00%
Bayerische Motoren Werke Aktiengesellschaft (A)		26,810		1,543,021
Deutsche Post AG (A)		70,260		2,123,891
E.ON AG (A)		5,810		792,179
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft,       Registered Shares (A)		13,690		2,367,355
Siemens AG (A)		25,310		2,525,821
				9,352,267
Hong Kong - 1.11%
China Coal Energy Company Limited, H Shares (A)(B)*		241,000		156,467
Hutchison Whampoa Limited, Ordinary Shares (A)		239,000		2,428,930
				2,585,397
Israel - 0.99%
Check Point Software Technologies Ltd.*		105,440		2,311,772
Italy - 1.93%
Eni S.p.A. (A)		59,979		2,017,378
Mediaset S.p.A. (A)		209,042		2,480,744
				4,498,122
Japan - 2.55%
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)		87		1,074,661
Konica Minolta Holdings, Inc. (A)*		76,500		1,079,955
Sony Corporation (A)*		61,500		2,635,604
Takeda Pharmaceutical Company Limited (A)		16,900		1,160,229
				5,950,449
Netherlands - 4.59%
Akzo Nobel N.V. (A)		16,030		977,818
ING Groep N.V., Certicaaten Van Aandelen (A)		77,170		3,421,742
Koninklijke Philips Electronics N.V., Ordinary Shares (A)		40,460		1,525,896
Reed Elsevier NV (A)		158,290		2,699,633
Vedior N.V. (A)*		101,500		2,104,897
				10,729,986
Norway - 2.23%
Norske Skogindustrier ASA (A)		124,071		2,139,093
Telenor ASA (A)		163,300		3,070,780
				5,209,873
Portugal - 0.18%
Portugal Telecom, SGPS, S.A., Ordinary Shares (A)		33,040		429,165
Singapore - 2.69%
DBS Group Holdings Ltd (A)		33,000		486,259
Flextronics International Ltd.*		159,220		1,828,642
Singapore Telecommunications Limited (A)		931,000		1,990,989
Venture Corporation Limited (A)		226,000		1,989,242
				6,295,132
South Korea - 3.41%
KT Corporation, ADR*		48,730		1,235,305
Kookmin Bank, ADR*		16,440		1,325,722
POSCO, ADR		9,340		772,138
SK Telecom Co., Ltd., ADR		41,000		1,085,680
Samsung Electronics Co., Ltd. (A)		3,393		2,236,461
Samsung Electronics Co., Ltd., GDR (B)		4,010		1,319,290
				7,974,596
Spain - 2.61%
Gamesa Corporacion Tecnologica, S.A. (A)		53,110		1,461,743
Repsol YPF, S.A. (A)		70,566		2,440,537
Telefonica, S.A., ADR		34,285		2,185,669
Telefonica, S.A., Brazilian Depositary Receipts (A)		569		12,078
				6,100,027
Sweden - 1.43%
Nordea Bank AB, Finnish Depositary Receipts (A)		89,560		1,385,576
Securitas AB, Class B (A)		105,270		1,633,804
Securitas Systems AB, Class B (A)*		78,750		318,637
				3,338,017
Switzerland - 2.16%
Lonza Group Ltd, Registered Shares (A)		5,800		501,223
Nestle S.A., Registered Shares (A)		6,410		2,277,825
Swiss Reinsurance Company, Registered Shares (A)		26,800		2,278,605
				5,057,653
Taiwan - 3.63%
Chunghwa Telecom Co., Ltd., ADR		124,989		2,466,025
Compal Electronics Inc., GDR		54,799		244,272
Compal Electronics Inc., GDR (B)		133,829		596,556
Lite-On Technology Corporation, GDR		214,624		2,901,394
Mega Financial Holding Company (A)	3,085,000			2,267,477
				8,475,724
United Kingdom - 17.54%
AMVESCAP PLC (A)		26,400		308,077
Alliance Boots plc (A)		61,929		1,015,523
Aviva plc (A)		187,140		3,011,945
BAE SYSTEMS plc (A)		93,350		778,176
BBA Aviation plc (A)		173,116		927,048
BP p.l.c. (A)		201,670		2,240,866
British Sky Broadcasting Group plc (A)		230,870		2,359,645
Cadbury Schweppes plc (A)		72,900		780,057
Compass Group PLC (A)		560,920		3,184,986
Fiberweb plc (A)*		51,522		209,831
GlaxoSmithKline plc (A)		145,100		3,818,346
Group 4 Securicor plc (A)		814,530		2,998,289
HSBC Holdings plc (A)		126,250		2,301,387
Old Mutual plc (A)	1,010,310			3,446,959
Pearson plc (A)		86,110		1,300,763
Rentokil Initial plc (A)		376,520		1,221,941
Royal Bank of Scotland Group plc (The) (A)		93,950		3,666,171
Royal Dutch Shell plc, Class B (A)		27,641		968,758
tesco plc (A)		157,950		1,250,970
Unilever PLC (A)		52,092		1,456,491
Vodafone Group Plc (A)	1,279,188			3,544,045
Vodafone Group Plc, ADR		6,590		183,070
				40,973,344
TOTAL COMMON STOCKS - 66.38%			$	155,071,413
(Cost: $121,466,322)

CORPORATE DEBT SECURITY - 3.42%		Principal Amount in Thousands
Banks
KfW, Frankfurt am Main,
0.2325%, 8-08-11	JPY950,000			$	7,983,528
(Cost: $8,289,642)
OTHER GOVERNMENT SECURITIES
Australia - 0.41%
Queensland Treasury Corporation,
8.0%, 9-14-07	AUD1,200				958,210
Austria - 0.25%
Republic of Austria:
5.5%, 10-20-07	EUR360				480,990
4.0%, 7-15-09			70		92,606
					573,596
Belgium - 0.30%
Belgium Government Bond:
7.5%, 7-29-08			405		563,107
5.0%, 9-28-12			100		138,981
					702,088
Canada - 2.33%
Canadian Government Bond:
4.5%, 9-01-07	CAD5,540				4,760,652
6.0%, 6-01-11			748		693,107
					5,453,759
Finland - 0.43%
Finland Government Bond:
3.0%, 7-04-08	EUR400				521,365
5.0%, 4-25-09			60		81,080
5.75%, 2-23-11			280		394,820
					997,265
Germany - 0.10%
Deutsche Bundesrepublik,
5.0%, 7-04-11			170		233,990
Ireland - 0.32%
Ireland Government Bond,
5.0%, 4-18-13			540		754,318
New Zealand - 0.12%
New Zealand Government Bond,
6.0%, 11-15-11	NZD410				284,477
Norway - 2.57%
Norway Government Bond,
6.75%, 1-15-07	NOK17,135				2,750,814
Norway Treasury Bills:
0.0%, 6-20-07			7,800		1,231,502
0.0%, 9-19-07			13,000		2,031,015
					6,013,331
Poland - 3.25%
Poland Government Bond:
8.5%, 5-12-07	PLN5,300				1,853,556
5.75%, 6-24-08			1,200		420,486
6.0%, 5-24-09			4,275		1,517,104
6.25%, 10-24-15			3,250		1,201,284
5.75%, 9-23-22			7,270		2,610,164
					7,602,594
Singapore - 1.79%
Singapore Government Bond,
2.625%, 10-01-07	SGD6,450				4,192,002
South Korea - 2.02%
South Korea Treasury Bond:
4.75%, 3-03-07	KRW2,300,000				2,472,245
3.75%, 9-10-07	1,100,000				1,173,466
4.5%, 9-09-08	1,000,000				1,067,220
					4,712,931
Spain - 0.20%
Spain Government Bond,
6.0%, 1-31-08	EUR 350				472,092
Supranational - 2.74%
European Investment Bank:
2.125%, 9-20-07	JPY645,000				5,478,497
0.3325%, 9-21-11		110,000			924,010
					6,402,507
Sweden - 4.16%
Sweden Government Bond:
8.0%, 8-15-07	SEK24,480				3,673,815
6.5%, 5-05-08			24,500		3,709,025
Sweden Treasury Bills:
0.0%, 6-20-07			2,500		360,558
0.0%, 9-19-07			13,800		1,971,323
					9,714,721
Thailand - 1.51%
Thailand Government Bond,
5.5%, 8-10-08	THB8,770				248,118
Thailand Treasury Bills:
0.0%, 3-08-07			4,100		114,743
0.0%, 5-03-07			27,000		749,316
0.0%, 9-06-07			70,900		1,935,588
0.0%, 10-04-07			17,100		465,004
					3,512,769
TOTAL OTHER GOVERNMENT SECURITIES - 22.50%				$	52,580,650
(Cost: $49,201,447)
SHORT-TERM SECURITIES
Commercial Paper
Banks - 0.86%
Rabobank USA Financial Corp.,
5.28%, 1-02-07			$ 2,000		1,999,707
Containers - 1.28%
Bemis Company, Inc.,
5.33%, 1-08-07			3,000		2,996,891
Multiple Industry - 1.50%
Honeywell International Inc.,
5.27%, 1-09-07			3,515		3,510,884
Utilities -- Telephone - 3.42%
BellSouth Corporation:
5.29%, 1-04-07			3,000		2,998,677
5.32%, 1-11-07			5,000		4,992,611
					7,991,288
Total Commercial Paper - 7.06%					16,498,770
Commercial Paper (backed by irrevocable bank       letter of credit) - 0.64%
Multiple Industry
Louis Dreyfus Corporation (Barclays Bank PLC,             New York Branch),
5.29%, 2-15-07			1,500		1,490,081
TOTAL SHORT-TERM SECURITIES - 7.70%				$	17,988,851
(Cost: $17,988,851)
TOTAL INVESTMENT SECURITIES - 100.00%				$	233,624,442
(Cost: $196,946,262)

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.

*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, 2006, the total value of these securities amounted to $2,269,477 or 0.97% of total investments.

(C)Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, CAD - Canadian Dollar, EUR - Euro, JPY - Japanese Yen, 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 Core Equity Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Australia - 3.47%
Metcash Limited (A)		680,050	$	2,506,835
National Australia Bank Limited (A)		61,000		1,945,267
Rio Tinto Limited (A)		31,930		1,872,646
				6,324,748
Brazil - 1.56%
Petroleo Brasileiro S.A. - Petrobras, ADR		27,600		2,842,524
Canada - 4.96%
Agrium Inc. (A)		74,620		2,338,134
Goldcorp Inc. (A)		101,720		2,888,093
Nortel Networks Corporation*		74,020		1,978,555
Petro-Canada (A)		44,770		1,833,184
				9,037,966
China - 2.15%
Actions Semiconductor Co., Ltd.*		165,770		1,374,233
China Oilfield Services Limited (A)	1,254,000			870,576
Industrial and Commercial Bank of China Limited,       H Shares (A)(B)*	2,700,000			1,676,587
				3,921,396
Finland - 0.99%
Nokia Corporation, Series A, ADR		89,060		1,809,699
France - 11.21%
ALSTOM (A)*		16,380		2,220,614
BNP Paribas (A)		23,150		2,525,705
Compagnie Generale des Etablissements Michelin, Class B (A)		18,990		1,817,405
SUEZ (A)		33,940		1,757,595
Technip-Coflexip (A)		25,240		1,732,533
TOTAL S.A. (A)		62,670		4,521,042
VINCI (A)		14,920		1,906,483
Vivendi Universal (A)		101,140		3,953,212
				20,434,589
Germany - 9.09%
Commerzbank Aktiengesellschaft (A)		66,490		2,523,381
Deutsche Bank AG (A)		18,580		2,491,395
Deutsche Borse AG (A)		12,200		2,250,288
E.ON AG (A)		17,740		2,418,804
Fresenius AG (A)		9,430		2,017,202
SAP Aktiengesellschaft (A)		50,960		2,713,651
Siemens AG (A)		21,550		2,150,591
				16,565,312
Hong Kong - 2.40%
Agile Property Holdings Limited (A)	1,458,000			1,368,345
Agile Property Holdings Limited (A)(B)		730,000		685,111
Cheung Kong (Holdings) Limited (A)		188,000		2,314,259
				4,367,715
Ireland - 2.16%
Allied Irish Banks, p.l.c. (A)		64,720		1,932,501
Irish Life & Permanent plc (A)		72,120		1,999,234
				3,931,735
Italy - 2.17%
Banca Intesa S.p.A. (A)		279,310		2,156,905
UniCredito Italiano S.p.A. (A)		205,050		1,797,283
				3,954,188
Japan - 23.08%
Chubu Electric Power Company, Incorporated (A)		148,400		4,439,343
Daiwa Securities Group Inc. (A)		169,000		1,895,845
DENSO CORPORATION (A)		44,500		1,764,968
East Japan Railway Company (A)		300		2,004,117
Hitachi Transport System, Ltd. (A)		171,500		1,794,189
Hoya Corporation (A)		69,700		2,717,600
KDDI CORPORATION (A)		292		1,980,119
Konica Minolta Holdings, Inc. (A)*		130,500		1,842,276
Kurita Water Industries Ltd. (A)		86,800		1,874,509
Matsushita Electric Industrial Co., Ltd. (A)		61,000		1,217,386
Mitsubishi Estate Co., Ltd. (A)		90,000		2,329,314
Mizuho Financial Group, Inc. (A)		290		2,071,342
Nissin Kogyo Co., Ltd. (A)		78,800		2,026,201
Shimachu Co., Ltd. (A)		76,600		2,220,663
Sumitomo Mitsui Financial Group, Inc. (A)		230		2,357,884
Sumitomo Mitsui Financial Group, Inc. (A)(B)		29		297,298
Suzuki Motor Corporation (A)		64,100		1,809,806
Toda Corporation (A)		425,000		1,803,496
Toyota Motor Corporation (A)		51,400		3,438,040
Ushio Inc. (A)		105,200		2,161,371
				42,045,767
Netherlands - 3.99%
Heineken N.V. (A)		64,660		3,075,308
Royal Numico N.V. (A)		44,200		2,377,599
TNT N.V. (A)		42,210		1,815,328
				7,268,235
New Zealand - 1.02%
Fletcher Building Limited (A)		237,830		1,851,567
Norway - 2.95%
Cermaq ASA (A)(B)		81,600		1,190,916
Orkla ASA (A)		39,450		2,233,425
Statoil ASA (A)		73,950		1,959,879
				5,384,220
Singapore - 1.52%
Singapore Telecommunications Limited (A)	1,298,000			2,775,837
South Korea - 0.37%
Kyeryong Construction Industrial Co. Ltd (A)		16,000		673,548
Spain - 0.96%
Tecnicas Reunidas, S.A. (A)(B)*		45,530		1,750,160
Sweden - 0.61%
Rezidor Hotel Group AB (A)(B)*		130,000		1,120,370
Switzerland - 9.38%
Credit Suisse Group, Registered Shares (A)		35,060		2,452,905
Nestle S.A., Registered Shares (A)		9,980		3,546,442
Novartis AG, ADR		54,110		3,108,078
Roche Holdings AG, Genussschein (A)		10,850		1,945,609
Swiss Reinsurance Company, Registered Shares (A)		21,160		1,799,078
UBS AG (A)		37,110		2,255,228
Zurich Financial Services, Registered Shares (A)		7,340		1,975,806
				17,083,146
Taiwan - 0.39%
Himax Technologies, Inc., ADR*		149,380		711,796
United Kingdom - 15.18%
BAE SYSTEMS plc (A)		436,680		3,640,211
Barclays PLC (A)		200,250		2,862,227
British American Tobacco p.l.c. (A)		86,180		2,411,278
Cadbury Schweppes plc (A)		185,710		1,987,166
GlaxoSmithKline plc (A)		78,560		2,067,328
Intertek Group plc (A)		122,080		1,992,318
Prudential plc (A)		162,530		2,226,024
Royal Bank of Scotland Group plc (The) (A)		66,840		2,608,269
Smiths Group plc (A)		101,190		1,964,441
Vodafone Group Plc (A)		938,179		2,599,266
WPP Group plc (A)		167,640		2,266,470
Xstrata plc (A)		20,546		1,025,832
				27,650,830
TOTAL COMMON STOCKS - 99.61%			$	181,505,348
(Cost: $160,970,391)

SHORT-TERM SECURITIES - 0.39%	Principal Amount in Thousands
Utilities -- Telephone
AT&T Inc.,
5.33%, 1-2-07	$	702	$	701,896
(Cost: $701,896)
TOTAL INVESTMENT SECURITIES - 100.00%			$	182,207,244
(Cost: $161,672,285)

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Portfolio's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.

*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, 2006, the total value of these securities amounted to $6,720,442 or 3.69% of total investments.

The Investments of Ivy International Growth Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Australia - 1.50%
Novogen LTD (A)*		474,580	$	973,982
QBE Insurance Group Limited (A)		113,000		2,573,311
				3,547,293
Austria - 0.73%
Erste Bank der oesterreichischen Sparkassen AG (A)		22,450		1,721,794
Canada - 1.40%
Goldcorp Inc. (A)		43,000		1,220,881
Shoppers Drug Mart Corporation (A)(B)		48,450		2,081,088
				3,301,969
China - 1.08%
Industrial and Commercial Bank of China Limited,       H Shares (A)(B)*	4,100,000			2,545,929
France - 8.44%
ALSTOM (A)*		19,700		2,670,702
Cap Gemini SA (A)		25,500		1,600,587
Pernod Ricard (A)		9,600		2,205,003
Pinault-Printemps-Redoute SA (A)		10,450		1,561,534
SR.Teleperformance (A)(B)		46,666		1,814,772
TOTAL S.A. (A)		51,000		3,679,163
VINCI (A)		50,000		6,389,017
				19,920,778
Germany - 12.31%
Allianz Aktiengesellschaft, Registered Shares (A)		14,800		3,026,425
Deutsche Borse AG (A)		15,600		2,877,418
E.ON AG (A)		20,000		2,726,949
elexis AG (A)		48,000		1,367,989
Fresenius AG (A)		7,530		1,610,767
GAGFAH S.A. (A)(B)*		60,000		1,871,559
Henkel Kommanditgesellschaft auf Aktien (A)		8,500		1,252,195
RWE Aktiengesellschaft (A)		14,300		1,575,445
SAP Aktiengesellschaft (A)		74,700		3,977,821
Salzgitter AG (A)		11,500		1,513,497
Siemens AG (A)		37,500		3,742,327
Vivacon AG (A)*		20,000		673,223
Wacker Chemie AG (A)*		22,000		2,863,441
				29,079,056
Greece - 4.47%
Bank of Cyprus Limited (A)		250,000		3,418,916
Greek Postal Savings Bank S.A. (A)*		100,000		2,357,600
Hellenic Exchanges Holding S.A. (A)		150,000		2,760,214
Piraeus Bank S.A. (A)		62,500		2,014,718
				10,551,448
Hong Kong - 2.08%
Agile Property Holdings Limited (A)	2,600,000			2,440,122
Cheung Kong (Holdings) Limited (A)		200,000		2,461,978
				4,902,100
Ireland - 4.29%
Anglo Irish Bank Corporation plc (Great Britain) (A)		360,000		7,437,133
CRH public limited company (A)		64,700		2,697,150
				10,134,283
Italy - 5.24%
Banca Intesa S.p.A. (A)		594,000		4,587,024
Banca Italease S.p.A. (A)		30,900		1,801,667
Saipem S.p.A. (A)		78,300		2,040,317
UniCredito Italiano S.p.A. (A)		450,001		3,944,303
				12,373,311
Japan - 17.83%
Astellas Pharma Inc. (A)		58,000		2,636,696
CREDIT SAISON CO., LTD. (A)		35,000		1,205,832
Canon Inc. (A)		79,200		4,458,972
Central Japan Railway Company (A)		110		1,136,927
DENSO CORPORATION (A)		37,700		1,495,265
FANUC LTD (A)		28,000		2,757,531
Hoya Corporation (A)		86,000		3,353,136
Japan Tobacco Inc. (A)		550		2,657,451
Mitsubishi Estate Co., Ltd. (A)		145,000		3,752,784
Mizuho Financial Group, Inc. (A)		420		2,999,874
SMC Corporation (A)		10,000		1,418,428
SUMCO Corporation (A)		30,000		2,536,028
Shin-Etsu Chemical Co., Ltd. (A)		42,000		2,812,823
Sumitomo Mitsui Financial Group, Inc. (A)		230		2,357,884
Toyota Motor Corporation (A)		80,000		5,351,036
Unicharm Corporation (A)		20,000		1,188,185
				42,118,852
Netherlands - 1.65%
Euronext N.V. (A)		12,700		1,500,429
Royal Numico N.V. (A)		44,400		2,388,357
				3,888,786
Norway - 0.89%
Statoil ASA (A)		79,000		2,093,718
Russia - 1.61%
OAO LUKOIL, ADR		43,500		3,801,900
South Korea - 1.17%
Samsung Electronics Co., Ltd. (A)		4,200		2,768,387
Spain - 2.04%
Banco Bilbao Vizcaya Argentaria, S.A. (A)		85,000		2,046,598
Enagas, S.A. (A)		119,000		2,767,844
				4,814,442
Sweden - 1.99%
H & M Hennes & Mauritz AB (A)		43,000		2,173,256
Telefonaktiebolaget LM Ericsson, B Shares (A)		628,000		2,536,419
				4,709,675
Switzerland - 12.30%
Compagnie Financiere Richemont SA (A)		30,100		1,753,878
Credit Suisse Group, Registered Shares (A)		56,800		3,973,902
Holcim Ltd, Registered Shares (A)		32,700		2,997,612
Nestle S.A., Registered Shares (A)		13,000		4,619,614
Nobel Biocare Holding AG (A)		4,500		1,330,427
Novartis AG, Registered Shares (A)		143,500		8,273,184
Petroplus Holdings AG (A)(B)*		20,000		1,214,608
SGS SA (A)		2,000		2,228,970
Zurich Financial Services, Registered Shares (A)		9,900		2,664,916
				29,057,111
United Kingdom - 14.85%
BAE SYSTEMS plc (A)		285,000		2,375,790
BHP Billiton Plc (A)		129,200		2,364,016
British American Tobacco p.l.c. (A)		141,000		3,945,118
Diageo plc (A)		85,000		1,668,445
GlaxoSmithKline plc (A)		100,000		2,631,527
IG Group Holdings plc (A)(B)		272,000		1,547,119
Intertek Group plc (A)		187,000		3,051,798
Prudential plc (A)		100,000		1,369,608
Reckitt Benckiser plc (A)		87,500		3,998,688
Royal Bank of Scotland Group plc (The) (A)		119,600		4,667,100
Standard Chartered PLC (A)		42,500		1,241,556
Vodafone Group Plc (A)	1,400,000			3,878,762
WPP Group plc (A)		173,000		2,338,936
				35,078,463
United States - 2.37%
Research In Motion Limited*		28,850		3,688,617
streetTRACKS Gold Trust*		30,000		1,896,600
				5,585,217
TOTAL COMMON STOCKS - 98.24%			$	231,994,512
(Cost: $174,655,664)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Banks - 0.85%
Rabobank USA Financial Corp.,
5.28%, 1-2-07	$	2,000		1,999,707
Multiple Industry - 0.91%
Honeywell International Inc.,
5.27%, 1-9-07		2,167		2,164,462
TOTAL SHORT-TERM SECURITIES - 1.76%			$	4,164,169
(Cost: $4,164,169)
TOTAL INVESTMENT SECURITIES - 100.00%			$	236,158,681
(Cost: $178,819,833)

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.

*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, 2006, the total value of these securities amounted to $11,075,075 or 4.69% of total investments.

The Investments of Ivy Mortgage Securities Fund
December 31, 2006
CORPORATE DEBT SECURITIES	Principal Amount in Thousands				Value
Finance Companies
ABFS Mortgage Loan Trust 2001-2,
6.99%, 12-25-31	$	1,335		$	1,359,844
ABFS Mortgage Loan Trust 2002-4,
7.423%, 12-15-33		1,485			1,487,914
Alternative Loan Trust 2006-J5,
6.5%, 9-25-36		3,000			3,042,425
Asset Securitization Corporation (Interest Only),
1.58818%, 10-13-26 (A)		4,388			209,918
Asset Securitization Corporation (Interest Only),
2.38392%, 8-13-29		7,309			432,833
Asset Securitization Corporation,
7.8988%, 2-14-43		1,430			1,554,015
Associates Manufactured Housing Contract Pass-Through       Certificates,
7.9%, 3-15-27		1,800			1,843,619
Banc of America Alternative Loan Trust 2004-11,
6.0%, 12-25-34		1,292			1,283,957
Banc of America Alternative Loan Trust 2005-6,
6.0%, 7-25-35		953			944,933
Banc of America Alternative Loan Trust 2005-8,
5.57384%, 9-25-35		2,084			2,025,013
Banc of America Alternative Loan Trust 2005-8,
5.57384%, 9-25-35		414			396,678
Banc of America Alternative Loan Trust 2005-10,
5.66838%, 11-25-35		1,173			1,070,582
Banc of America Alternative Loan Trust 2005-12,
5.8068%, 1-25-36		1,659			1,606,957
Banc of America Alternative Loan Trust 2006-4,
6.22492%, 5-25-36		906			854,337
Banc of America Alternative Loan Trust 2006-4,
6.22492%, 5-25-36		649			644,855
Banc of America Alternative Loan Trust 2006-6,
6.0%, 6-25-46		3,070			3,053,053
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2001-PB1,
6.15%, 5-11-35 (A)		2,000			2,045,040
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2002-2,
6.2%, 7-11-43 (A)		1,200			1,234,397
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2003-1,
4.9%, 9-11-36 (A)		1,000			958,619
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2004-6,
5.104%, 12-10-42 (A)		800			778,885
Banc of America Funding 2004-2 Trust,
6.5%, 7-20-32		1,236			1,252,408
Banc of America Funding Corporation,
5.00815%, 9-20-34		1,406			1,364,006
Banc of America Mortgage 2005-J Trust,
5.09259%, 11-25-35		2,505			2,482,019
Banc of America Mortgage Alternative Loan Trust 2003-5,
5.5%, 7-25-33 (A)		1,293			1,189,124
Banc of America Mortgage Trust 2003-9,
5.5%, 12-25-33		826			742,897
Banc of America Mortgage Trust 2004-2,
5.0%, 3-25-19		314			305,356
Banc of America Mortgage Trust 2004-2,
5.0%, 3-25-19		245			234,517
Banc of America Mortgage Trust 2004-3,
4.875%, 4-25-19		424			409,506
Banc of America Mortgage Trust 2004-3,
4.875%, 4-25-19		227			216,196
Banc of America Mortgage Trust 2004-7,
5.75%, 8-25-34		1,207			1,192,407
Banc of America Structured Securities Trust 2002-X1 F,
6.274%, 10-11-33 (A)		1,750			1,800,850
Banco Hipotecario Nacional,
7.916%, 7-25-09 (A)		23			582
Banco Hipotecario Nacional,
2.57%, 3-25-11 (A)		10			250
Banco Hipotecario Nacional,
7.54%, 5-31-17 (A)		- ---	*		4
Bank of America, N.A.-First Union National Bank       Commercial Mortgage Trust,
6.25%, 4-11-37 (A)		1,750			1,797,777
BankAmerica Manufactured Housing Contract Trust,
7.8%, 10-10-26		2,000			2,038,553
BankAmerica Manufactured Housing Contract Trust,
7.015%, 1-10-28		1,355			1,368,517
Bear Stearns Commercial Mortgage Securities Inc.       Series 2001-TOP2 Trust Fund,
7.25921%, 2-15-35 (A)		3,000			3,202,905
Bear Stearns Commercial Mortgage Securities Inc.       Series 2001-TOP2 Trust Fund,
7.59921%, 2-15-35 (A)		795			867,407
Bear Stearns Commercial Mortgage Securities Inc.,       Series 2000-WF1 Trust Fund,
6.5%, 2-15-32		1,015			1,040,537
Bear Stearns Commercial Mortgage Securities       Trust2002-TOP6,
6.0%, 10-15-36 (A)		937			929,174
Bear Stearns Mortgage Securities Inc.,
8.0%, 11-25-29		500			498,305
BlackRock Capital Finance,
7.75%, 9-25-26 (A)		663			662,738
C-Bass 2005-CB3 Trust,
5.109%, 12-25-34		1,254			1,188,388
C-BASS 2006-CB2 Trust,
5.717%, 12-25-36		773			770,020
C-Bass 2006-MH1 Trust,
5.97%, 9-25-36 (A)		1,445			1,456,177
CHL Mortgage Pass-Through Trust 2003-28,
4.15%, 8-25-33		1,500			1,418,830
COMM 2006-CNL2,
5.5699%, 2-5-19 (A)		925			923,630
CSAB Mortgage-Backed Trust 2006-2,
6.08%, 9-25-36		3,540			3,539,883
CSFB Commercial Mortgage Trust 2003-C4,
5.4994%, 8-15-36 (A)		1,000			970,895
CWHEQ Home Equity Loan Trust, Series 2006-S3,
6.518%, 1-25-29		2,135			2,187,826
Capital Auto Receivables Asset Trust 2006-1,
7.16%, 1-15-13 (A)		1,140			1,149,503
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35		2,301			2,231,561
Charlie Mac Trust 2004-2,
5.0%, 10-25-34		2,485			2,379,358
Chase Mortgage Finance Trust, Series 2003-S2,
5.0%, 3-25-18		1,950			1,918,269
Chase Mortgage Finance Trust, Series 2003-S11,
5.5%, 10-25-33		933			913,674
Collateralized Mortgage Obligation Trust,
5.0%, 7-1-18		36			36,341
Conseco Finance Securitizations Corp.,
6.981%, 6-15-32		1,200			1,206,002
CountryPlace Manufactured Housing Contract Trust 2005-1,
4.8%, 12-15-35 (A)		1,275			1,245,367
Countrywide Home Loans, Inc. Asset-Backed Certificates,       Series 2005-10,
4.915%, 2-25-36		5,000			4,871,225
Credit Suisse Commercial Mortgage Trust Series 2006-C5,
5.311%, 12-15-39		1,000			995,814
Credit Suisse First Boston Mortgage Securities Corp.,
6.0%, 11-25-18		581			581,307
DLJ Commercial Mortgage Corp. 1998-CG1,
7.405%, 6-10-31 (A)		1,640			1,797,387
FFCA Secured Lending Corporation,
6.45%, 2-18-22 (A)		1,500			1,417,170
FFCA Secured Lending Corporation,
6.7%, 2-18-22 (A)		1,000			936,309
First Horizon Mortgage Pass-Through Trust 2003-8,
5.12245%, 10-25-33		376			325,243
Ford Credit Auto Owner Trust 2006-B,
7.12%, 2-15-13 (A)		635			643,055
GMAC Commercial Mortgage Securities,
5.94%, 7-1-13 (A)		208			206,509
Global Mortgage Securitization 2005-A Ltd. and Global       Mortgage Securitization 2005-A LLC,
5.25%, 4-25-32		820			781,060
Global Mortgage Securitization 2005-A Ltd. and Global       Mortgage Securitization 2005-A LLC,
5.399%, 4-25-32		1,275			1,145,784
Global Mortgage Securitization Ltd. and Global Mortgage       Securitization, LLC,
5.25%, 11-25-32 (A)		1,136			1,098,341
Global Mortgage Securitization Ltd. and Global Mortgage       Securitization, LLC,
5.25%, 11-25-32 (A)		530			515,832
Green Tree Financial Corporation,
7.65%, 4-15-19		822			851,600
Green Tree Financial Corporation,
8.3%, 11-15-19		635			659,051
Green Tree Financial Corporation,
9.1%, 4-15-25		1,075			1,259,670
Green Tree Financial Corporation,
9.0%, 6-15-25		1,052			1,189,231
Hilton Hotel Pool Trust,
5.85%, 10-3-15 (A)		500			505,029
Hilton Hotel Pool Trust,
7.653%, 10-3-15 (A)		1,955			2,051,478
Home Equity Loan Trust 2003-HS2,
5.09%, 7-25-33		283			279,422
Hometown Commercial Capital, LLC Hometown Commercial       Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38		2,388			2,391,509
Impac CMB Trust Series 2003-2F,
6.0%, 1-25-33		976			966,445
J.P. Morgan Alternative Loan Trust 2006-A6,
5.95%, 11-25-36		2,500			2,515,422
J.P. Morgan Chase Commercial Mortgage Securities Corp.,
6.2207%, 10-12-37 (A)		2,300			2,386,920
J.P. Morgan Mortgage Acquisition Trust 2006-CW2,
6.337%, 8-25-36		2,725			2,782,161
J.P. Morgan Mortgage Acquisition Trust 2006-WF1,
6.41%, 7-25-36		2,510			2,565,153
J.P. Morgan Mortgage Trust 2004-A3,
4.29552%, 7-25-34		1,539			1,495,287
J.P. Morgan Mortgage Trust 2005-S2,
5.66763%, 9-25-35		2,267			2,224,002
J.P. Morgan Mortgage Trust 2006-A2,
3.81631%, 8-25-34		2,165			2,071,689
J.P. Morgan Mortgage Trust 2006-S3,
6.187%, 8-25-36		1,217			1,220,229
Lehman XS Trust, Series 2005-8,
5.69%, 12-25-35		3,057			3,031,508
MASTR Asset Securitization Trust 2003-10,
5.5%, 11-25-33		1,529			1,502,651
MMCA Auto Owner Trust 2002-2,
4.67%, 3-15-10		177			176,891
Metropolitan Asset Funding, Inc.,
6.98%, 5-20-12 (A)		37			36,667
Mid-State Capital Corporation 2004-1 Trust,
6.005%, 8-15-37		375			381,329
Mid-State Capital Corporation 2004-1 Trust,
6.497%, 8-15-37		1,365			1,374,844
Morgan Stanley Dean Witter Capital I Inc. Trust 2002-WL1,
6.73221%, 4-25-17		291			293,742
Morgan Stanley Dean Witter Capital I Trust 2002-IQ3,
6.45296%, 9-15-37 (A)		768			801,190
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4       (Interest Only),
1.05881%, 11-28-35 (A)	33,100				792,025
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4,
5.88%, 11-28-35 (A)		680			651,579
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4,
5.88%, 11-28-35 (A)		340			332,453
NationsLink Funding Corporation, Commercial Mortgage       Pass-Through Certificates, Series 1998-2,
5.0%, 8-20-30 (A)		1,000			952,481
Nomura Asset Securities Corporation, Commercial Mortgage       Pass-Through Certificates, Series1998-D6,
6.0%, 3-15-30 (A)		1,650			1,707,015
Oakwood Mortgage Investors, Inc.
8.1%, 10-15-21 (A)		431			433,381
Oakwood Mortgage Investors, Inc.,
7.375%, 8-15-27		386			389,430
Origen Manufactured Housing Contract Trust 2004-A,
5.7%, 1-15-35		543			535,749
Origen Manufactured Housing Contract Trust 2004-A,
5.91%, 1-15-35		1,600			1,585,712
Origen Manufactured Housing Contract Trust 2004-B,
4.75%, 8-15-21		400			384,733
Origen Manufactured Housing Contract Trust 2005-A,
4.97%, 10-15-21		935			908,375
Origen Manufactured Housing Contract Trust 2005-B,
5.605%, 5-15-22		360			358,217
Origen Manufactured Housing Contract Trust 2005-B,
5.91%, 1-15-37		600			596,183
Prudential Home Mortgage Securities,
6.98%, 9-28-08 (A)		9			8,647
Prudential Home Mortgage Securities,
6.73%, 4-28-24 (A)		4			3,823
Prudential Home Mortgage Securities,
8.06%, 9-28-24 (A)		28			28,039
RALI Series 2003-QS10 Trust,
5.5%, 5-25-33		2,202			2,140,801
RALI Series 2003-QS11 Trust,
5.75%, 6-25-33		2,529			2,492,467
RAMP Series 2005-RS1 Trust,
5.145%, 1-25-35		1,075			1,046,660
RASC Series 2003-KS10 Trust,
6.41%, 12-25-33		398			387,977
RESI Finance Limited Partnership 2003-C and RESI Finance       DE Corporation 2003-C,
6.75%, 9-10-35 (A)		1,447			1,472,119
RFMSI Series 2004-S5 Trust,
4.5%, 5-25-19		354			336,761
RFMSI Series 2004-S5 Trust,
4.5%, 5-25-19		176			165,413
Salomon Brothers Mortgage Securities VII, Inc., Mortgage       Pass-Through Certificates, Series 1997-HUD1,
7.75%, 12-25-30		1,469			1,508,996
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21,
5.4%, 11-25-35		1,575			1,506,204
Structured Asset Mortgage Investments, Inc.,
5.9782%, 4-30-30		21			21,384
Structured Asset Mortgage Investments, Inc.,
5.98361%, 4-30-30		10			9,878
Structured Asset Securities Corporation,
5.54%, 11-25-32		449			445,962
Structured Asset Securities Corporation,
5.25%, 8-25-33		1,325			1,257,989
Structured Asset Securities Corporation,
5.25%, 8-25-33		577			541,019
Structured Asset Securities Corporation,
5.63%, 5-25-34		1,100			1,086,222
Structured Asset Securities Corporation,
6.0%, 6-25-34		2,750			2,728,793
Vanderbilt Mortgage and Finance, Inc.,
7.07%, 12-7-14		31			30,933
Vanderbilt Mortgage and Finance, Inc.,
7.955%, 12-7-24		823			863,451
Vanderbilt Mortgage and Finance, Inc.,
7.525%, 11-7-26		915			924,367
Wachovia Bank Commercial Mortgage Trust (The),
4.942%, 11-15-34 (A)		964			927,096
Washington Mutual MSC Mortgage Pass-Through Certificates       Series 2002-MS11 Trust,
5.60124%, 12-25-32		984			966,221
Wells Fargo Mortgage Backed Securities 2003-2 Trust,
5.25%, 2-25-18		285			264,256
Wells Fargo Mortgage Backed Securities 2003-4 Trust,
5.5%, 6-25-33		951			891,472
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.25%, 8-25-33 (A)		1,152			989,918
Wells Fargo Mortgage Backed Securities 2004-1 Trust (The),
5.5%, 2-25-34		1,657			1,618,129
Wells Fargo Mortgage Backed Securities 2005-16 Trust,
5.75%, 1-25-36		500			492,293
TOTAL CORPORATE DEBT SECURITIES - 49.31%				$	159,072,412
(Cost: $161,046,972)
UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS
Agency Obligations - 0.25%
Federal Home Loan Mortgage Corporation,
2.75%, 3-15-08 (B)		200			194,424
Federal National Mortgage Association,
3.625%, 3-15-07		100			99,689
Federal National Mortgage Association,
5.0%, 9-15-08 (B)		500			499,444
					793,557
Mortgage-Backed Obligations - 43.67%
Federal Home Loan Mortgage Corporation Agency       REMIC/CMO,
5.0%, 6-15-31		2,000			1,929,932
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
10.29151%, 3-15-09		513			536,145
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 12-1-17		774			776,162
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 9-1-19		1,436			1,436,670
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 5-1-20		1,811			1,809,319
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 6-1-20		1,520			1,519,068
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
3.5%, 2-15-30		2,000			1,888,029
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.3%, 1-15-33		206			196,940
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.0%, 7-15-33		2,384			2,303,268
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 5-1-34		1,372			1,360,727
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 5-1-34		1,014			1,006,096
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
6.5%, 5-1-34		962			980,953
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 10-1-34		1,116			1,105,239
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 1-1-35		2,000			1,977,500
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.0%, 5-15-35		2,060			1,907,988
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 7-1-35		3,250			3,214,602
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.0%, 8-1-35		959			925,919
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
6.5%, 9-1-32		1,243			1,280,540
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.5%, 10-1-35		1,803			1,784,412
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates,
5.0%, 12-1-35		924			891,951
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 1-1-17		1,594			1,598,260
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 1-1-18		491			497,669
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 2-1-18		496			497,163
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 3-1-18		2,273			2,278,672
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 5-1-18		1,509			1,488,234
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 10-1-18		1,530			1,507,241
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 9-1-19		391			390,965
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 2-1-24		573			570,774
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 8-1-29		456			460,923
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
7.0%, 11-1-31		217			223,778
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 2-1-32		169			174,376
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 2-1-32		200			205,836
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 2-1-32		141			144,740
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
7.0%, 2-1-32		284			293,626
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
7.0%, 3-1-32		392			404,553
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 4-1-32		85			87,423
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 5-1-32		158			162,853
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 5-1-32		98			100,169
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 7-1-32		741			763,681
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 9-1-32		167			169,770
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 9-1-32		95			97,360
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 10-1-32		1,059			1,073,139
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 10-1-32		1,099			1,113,910
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 10-1-32		72			73,760
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 11-1-32		928			939,817
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 11-1-32		538			544,763
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 3-1-33		912			924,158
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 3-1-33		274			277,696
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 3-1-33		1,397			1,415,891
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 3-1-33		1,290			1,306,766
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 4-1-33		1,824			1,806,358
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 5-1-33		599			593,354
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 5-1-33		312			309,472
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 6-1-33		1,983			1,999,922
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 8-1-33		49			50,187
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 10-1-33		317			319,762
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 11-1-33		1,852			1,791,154
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 12-1-33		559			565,236
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 1-1-34		1,778			1,719,882
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 1-1-34		1,668			1,650,341
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 1-1-34		3,006			3,025,725
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 3-1-34		1,045			1,010,795
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 3-1-34		426			411,390
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 3-1-34		2,640			2,616,657
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 4-1-34		2,132			2,113,000
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 4-1-34		2,476			2,449,914
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 5-1-34		198			191,306
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 7-1-34		1,975			1,957,147
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 8-1-34		686			691,695
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 9-1-34		1,482			1,466,548
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 9-1-34		1,000			1,007,701
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 9-1-34		1,308			1,333,578
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 10-1-34		2,151			2,129,046
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 11-1-34		784			775,911
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 11-1-34		447			450,851
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 11-1-34		93			95,133
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 12-1-34		5,394			5,434,093
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 1-1-35		7,650			7,559,156
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 1-1-35		1,110			1,109,654
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 1-1-35		756			747,208
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
4.5%, 2-1-35		488			457,997
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 2-1-35		2,708			2,678,284
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 2-1-35		2,127			2,104,992
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 2-1-35		1,287			1,272,849
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 3-1-35		1,413			1,445,238
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 4-1-35		1,979			1,992,723
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.172%, 6-1-35		1,235			1,229,871
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 6-1-35		2,999			3,022,058
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
4.666%, 7-1-35		1,429			1,417,360
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 7-1-35		880			849,823
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 7-1-35		892			881,769
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 10-1-35		1,853			1,833,506
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 10-1-35		1,026			1,015,391
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 2-1-36		1,827			1,794,198
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 2-1-36		741			755,261
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 6-1-36		1,379			1,404,943
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 8-1-36		2,148			2,162,662
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 11-1-36		2,487			2,504,252
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 1-1-37		600			579,187
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.5%, 1-1-37		2,000			2,037,500
Government National Mortgage Association Agency       REMIC/CMO (Interest Only),
1.18125%, 3-16-34		7,889			359,673
Government National Mortgage Association Agency       REMIC/CMO (Interest Only),
0.89136%, 7-16-40		4,499			162,249
Government National Mortgage Association Agency       REMIC/CMO (Interest Only),
0.31951%, 3-16-42	19,952				287,734
Government National Mortgage Association Agency       REMIC/CMO (Interest Only),
0.96953%, 6-17-45	20,141				1,113,730
Government National Mortgage Association Fixed Rate       Pass-Through Certificates,
7.875%, 5-15-17		652			663,221
Government National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.25%, 7-15-24		288			295,213
Government National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 3-16-32		4,575			4,564,304
Government National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.0%, 7-15-34		988			961,290
Government National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.5%, 12-15-34		1,879			1,871,139
Government National Mortgage Association Fixed Rate       Pass-Through Certificates,
6.0%, 1-1-37		2,800			2,838,500
United States Department of Veterans Affairs,       Guaranteed REMIC Pass-Through Certificates,       Vendee Mortgage Trust, 1995-1 Class 1,
7.21314%, 2-15-25		247			255,708
United States Department of Veterans Affairs,       Guaranteed REMIC Pass-Through Certificates,       Vendee Mortgage Trust, 1995-1 Class 2,
7.7925%, 2-15-25		83			86,511
					140,900,738
TOTAL UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS - 43.92%				$	141,694,295
(Cost: $144,069,071)
SHORT-TERM SECURITIES
Computers -- Main and Mini - 3.10%
International Business Machines Corporation,
5.26%, 1-8-07	10,000				9,989,772
Electronic Components - 1.55%
United Technologies Corporation,
5.3%, 1-3-07		5,000			4,998,528
Finance Companies - 1.19%
Ciesco, LLC,
5.32%, 1-8-07		1,537			1,535,410
PACCAR Financial Corp.,
5.26%, 1-12-07		2,322			2,318,268
					3,853,678
Utilities -- Telephone - 0.93%
BellSouth Corporation,
5.29%, 1-4-07		3,000			2,998,678
TOTAL SHORT-TERM SECURITIES - 6.77%				$	21,840,656
(Cost: $21,840,656)
TOTAL INVESTMENT SECURITIES - 100.00%				$	322,607,363
(Cost: $326,956,699)

Notes to Schedule of Investments
Certain acronyms may be used within the body of the Portfolio's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.
(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, 2006, the total value of these securities amounted to $42,117,705 or 13.06% of total investments.
(B)Securities serve as collateral for the following open futures contracts at December 31, 2006:
	Type	Number of Contracts	Expiration Date	Market Value		Unrealized Appreciation (Depreciation)
	U.S. 5 Year Treasury       Note-Short	128	3-30-07	$	13,448,000		$	75,821
	U.S. 10 Year Treasury       Note-Short	117	3-21-07		12,573,844			114,266
				$	26,021,844		$	190,087

The Investments of Ivy Pacific Opportunities Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Australia - 1.92%
Macquarie Bank Limited (A)		35,000	$	2,180,611
Macquarie Infrastructure Group (A)		600,000		1,638,684
Rio Tinto Limited (A)		61,270		3,593,392
				7,412,687
Bermuda - 1.29%
Enerchina Holdings Limited (A)	56,718,000			4,958,441
China - 19.92%
Actions Semiconductor Co., Ltd.*		220,800		1,830,432
Beijing Enterprises Holdings Limited (A)		2,000,000		4,273,427
Canadian Solar Inc.*		250,000		2,608,750
China GrenTech Corporation Limited, ADR*		111,464		2,052,610
China Medical Technologies, Inc., ADR*		150,000		4,062,000
China Mobile Limited (A)		459,000		3,965,494
China Oilfield Services Limited (A)		7,300,000		5,067,945
China Petroleum & Chemical Corporation, H Shares (A)		6,000,000		5,553,913
China Shenhua Energy Company Limited, H shares (A)(B)		1,200,000		2,888,035
China Yurun Food Group Limited (A)		5,000,000		4,608,976
Heng Tai Consumables Group Limited (A)*	18,000,000			1,643,033
Industrial and Commercial Bank of China Limited,       H Shares (A)(B)*	12,500,000			7,761,979
KongZhong Corporation, ADR*		200,000		1,947,000
Mindray Medical International Limited, ADR*		50,000		1,196,000
New Oriental Education & Technology Group Inc., AD R*		66,000		2,213,640
PetroChina Company Limited, H Shares (A)		4,300,000		6,092,077
PetroChina Company Limited, H Shares (A)(B)		1,526,000		2,161,979
SINA Corporation*		50,000		1,435,250
Shanda Interactive Entertainment Limited, ADR*		100,000		2,165,000
Suntech Power Holdings Co., Ltd., ADR*		60,000		2,040,600
Tencent Holdings Limited (A)		1,174,000		4,180,836
Tong Ren Tang Technologies Co. Ltd. (A)		1,000,000		1,596,750
Vimicro International Corporation, ADR*		168,700		1,722,427
Wah Sang Gas Holdings Limited (A)(C)*		736,000		15,140
ZTE Corporation, H Shares (A)		800,000		3,682,038
				76,765,331
Hong Kong - 14.52%
Agile Property Holdings Limited (A)		2,380,000		2,233,650
Agile Property Holdings Limited (A)(B)		1,620,000		1,520,384
Cheung Kong (Holdings) Limited (A)		450,000		5,539,449
China BlueChemical Ltd., H Shares (A)*		7,604,000		3,079,413
China Coal Energy Company Limited, H Shares (A)(B)*		3,750,000		2,434,658
China Communications Construction Company Limited,       H Shares (A)*		1,600,000		1,581,837
China Communications Construction Company Limited,       H Shares (A)(B)*		3,000,000		2,965,944
China Merchants Bank Co., Limited (A)(B)*		2,000,000		4,237,430
DVN (Holdings) Limited (A)(B)*		3,500,000		1,255,416
Hutchison Whampoa Limited, Ordinary Shares (A)		370,000		3,760,269
Lee & Man Paper Manufacturing Limited (A)		1,658,000		4,071,301
Neo-Neon Holdings Limited (A)*		1,834,500		1,752,354
Panva Gas Holdings Limited (A)*		5,782,000		3,642,415
REXCAPITAL Financial Holdings Limited (A)*	49,575,000			3,091,148
Shimao Property Holdings Limited (A)*		4,200,000		7,872,671
Sinolink Worldwide Holdings Limited (A)	15,000,000			3,664,040
Sun Hung Kai Properties Limited (A)		283,000		3,250,845
				55,953,224
India - 5.82%
Bharat Heavy Electricals Limited (A)		84,570		4,393,494
Gujarat Ambuja Cements Limited (A)	1,129,130			3,598,368
ICICI Bank Limited, ADR		150,000		6,261,000
Infosys Technologies Limited (A)		90,000		4,558,563
Tata Motors Limited (A)		178,000		3,621,934
				22,433,359
Indonesia - 2.01%
PT Perusahaan Gas Negara (Persero) Tbk (A)		2,994,000		3,861,722
Perusahaan Perseroan (Persero) PT Telekomunikasi       Indonesia Tbk., Series B Shares (A)		3,450,000		3,874,465
				7,736,187
Malaysia - 3.31%
Genting Berhad (A)		300,000		2,806,122
IOI Corporation Berhad (A)		700,700		3,654,444
LION DIVERSIFIED HOLDINGS BERHAD (A)		2,000,000		3,599,773
Malayan Banking Berhad (A)		800,000		2,675,737
				12,736,076
Singapore - 6.62%
DBS Group Holdings Ltd (A)		266,000		3,919,544
K-REIT Asia (A)		1,205,940		1,965,672
Keppel Corporation Limited (A)		362,540		4,160,198
Keppel Land Limited (A)		1,000,000		4,498,778
SembCorp Industries Ltd (A)		1,424,000		3,565,222
Singapore Telecommunications Limited (A)		1,209,350		2,586,255
Wilmar International Limited (A)*		3,050,000		4,832,274
				25,527,943
South Korea - 17.51%
Daegu Bank, Ltd. (A)		280,000		4,787,097
Daelim Industrial Co., Ltd. (A)		50,000		4,086,022
HYUNDAI MOBIS (A)		40,000		3,694,624
Hana Financial Group, Inc. (A)		115,000		6,046,774
Hynix Semiconductor Inc. (A)*		140,000		5,487,097
Hyundai Motor Company (A)		36,700		2,659,763
Kookmin Bank (A)		143,000		11,516,882
Kyeryong Construction Industrial Co. Ltd (A)		90,000		3,788,710
LG Chem, Ltd. (A)		48,500		2,247,688
Lotte Shopping Co., Ltd.*		160,000		3,248,000
SK Telecom Co., Ltd. (A)		15,000		3,588,710
Samsung Electronics Co., Ltd. (A)		20,040		13,209,161
Shinsegae Co., Ltd. (A)		5,000		3,118,280
				67,478,808
Taiwan - 17.60%
Asustek Computer Inc. (A)		653,500		1,788,927
Cathay Financial Holding Co., Ltd. (A)		1,545,662		3,510,173
Chunghwa Telecom Co., Ltd., ADR		190,740		3,763,300
E.Sun Financial Holding Co., Ltd. (A)		5,100,000		3,537,210
Far Eastern Textile Ltd. (A)		3,816,000		3,337,609
Foxconn Technology Co., Ltd. (A)		397,900		4,768,450
High Tech Computer Corp. (A)		280,000		5,542,428
Himax Technologies, Inc., ADR*		500,000		2,382,500
Hon Hai Precision Ind. Co., Ltd. (A)		744,000		5,308,578
iShares MSCI Taiwan Index Fund		370,400		5,374,504
MediaTek Incorporation (A)		372,900		3,856,600
Nan Ya Plastics Corporation (A)		2,214,000		3,689,434
TSRC Corporation (A)		3,195,000		2,323,815
Taiwan Fertilizer Co., Ltd. (A)		2,220,000		4,244,468
Taiwan Semiconductor Manufacturing Company Ltd. (A)		3,077,367		6,374,782
Wistron Corporation (A)		3,151,470		4,681,023
Yuanta Core Pacific Securities Co., Ltd. (A)		4,000,000		3,320,546
				67,804,347
Thailand - 1.84%
Bangkok Bank Public Company Limited (A)		552,200		1,791,340
Banpu Public Company Limited, Registered Shares (A)		650,000		3,428,773
PTT Public Company Limited (A)		315,000		1,866,008
				7,086,121
United Kingdom - 1.38%
Standard Chartered PLC (A)(C)		180,350		5,328,212
United States - 2.82%
Comtech Group, Inc.*		100,000		1,818,000
Oil and Gas Development Company Limited, GDR (B)*		175,000		3,342,500
streetTRACKS Gold Trust*		90,000		5,689,800
				10,850,300
TOTAL COMMON STOCKS - 96.56%			$	372,071,036
(Cost: $282,290,162)

PUT OPTIONS - 0.10%		Number of Contracts
Industrial and Commercial Bank of China Limited,       H Shares, June 3.59, Expires 6-4-07	71,996,000			$	370,240
(Cost: $1,469,113)
SHORT-TERM SECURITIES		Principal Amount in Thousands
Banks - 0.52%
Rabobank USA Financial Corp. (Rabobank Nederland),
5.28%, 1-2-07		$	2,000		1,999,707
Finance Companies - 0.78%
PACCAR Financial Corp.,
5.25%, 1-17-07			3,000		2,993,000
Multiple Industry - 1.01%
Honeywell International Inc.,
5.27%, 1-9-07			3,907		3,902,424
Utilities -- Telephone - 1.03%
BellSouth Corporation,
5.32%, 1-11-07			4,000		3,994,089
TOTAL SHORT-TERM SECURITIES - 3.34%				$	12,889,220
(Cost: $12,889,220)
TOTAL INVESTMENT SECURITIES - 100.00%				$	385,330,496
(Cost: $296,648,495)

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.

*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, 2006, the total value of these securities amounted to $28,568,325 or 7.41% of total investments.

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

The Investments of Ivy Real Estate Securities Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Business Equipment and Services - 4.02%
Brookfield Properties Corporation		612,600	$	24,093,558
CB Richard Ellis Group, Inc., Class A*		69,600		2,310,720
				26,404,278
Health Care -- General - 0.43%
Brookdale Senior Living, Inc.		58,600		2,812,800
Hotels and Gaming - 3.15%
Hilton Hotels Corporation		242,600		8,466,740
Marriott International, Inc., Class A		68,200		3,254,504
Starwood Hotels & Resorts Worldwide, Inc.		143,300		8,956,250
				20,677,494
Multiple Industry - 2.35%
DCT Industrial Trust Inc.*		509,500		6,012,100
Forest City Enterprises, Inc., Class A		131,078		7,654,955
Macquarie Infrastructure Company Trust		49,400		1,752,712
				15,419,767
Real Estate Investment Trust - 89.41%
AMB Property Corporation		116,500		6,828,065
Acadia Realty Trust		109,500		2,739,690
Alexandria Real Estate Equities, Inc.		76,700		7,700,680
American Campus Communities, Inc.		337,200		9,600,084
American Financial Realty Trust		244,200		2,793,648
Apartment Investment and Management Company, Class A		179,300		10,044,386
Archstone-Smith Trust		444,100		25,851,061
Associated Estates Realty Corporation		125,600		1,725,744
AvalonBay Communities, Inc.		155,600		20,235,780
BioMed Realty Trust, Inc.		436,912		12,495,683
Boston Properties, Inc.		216,300		24,199,644
Brandywine Realty Trust		403,200		13,406,400
CBL & Associates Properties, Inc.		165,900		7,191,765
Camden Property Trust		219,400		16,202,690
Corporate Office Properties Trust		160,700		8,110,529
Cousins Properties Incorporated		50,900		1,795,243
Developers Diversified Realty Corporation		279,400		17,588,230
Duke Realty Corporation		217,700		8,903,930
Equity Inns, Inc.		127,100		2,028,516
Equity Lifestyle Properties, Inc.		93,600		5,094,648
Equity Residential		378,300		19,198,725
Essex Property Trust, Inc.		16,800		2,171,400
Federal Realty Investment Trust		32,100		2,728,500
First Potomac Realty Trust		159,500		4,643,045
General Growth Properties, Inc.		369,832		19,316,326
HRPT Properties Trust		108,900		1,344,915
Highland Hospitality Corporation		210,600		3,001,050
Home Properties, Inc.		96,400		5,713,628
Hospitality Properties Trust		52,000		2,471,560
Host Hotels & Resorts, Inc.	1,015,147			24,921,859
Innkeepers USA Trust		174,500		2,704,750
Kilroy Realty Corporation		63,400		4,945,200
Kimco Realty Corporation		486,900		21,886,155
Kite Realty Group Trust		320,600		5,969,572
LaSalle Hotel Properties		72,900		3,342,465
Liberty Property Trust		177,900		8,742,006
Macerich Company (The)		130,700		11,314,699
Mack-Cali Realty Corporation		129,100		6,584,100
Maguire Properties, Inc.		264,100		10,564,000
Mid-America Apartment Communities, Inc.		57,300		3,279,852
Newcastle Investment Corp.		119,300		3,736,476
NorthStar Realty Finance Corp.		108,200		1,792,874
ProLogis		642,865		39,066,906
Public Storage, Inc.		265,800		25,915,500
Regency Centers Corporation		139,200		10,881,264
SL Green Realty Corp.		136,600		18,137,748
Simon Property Group, Inc.		433,600		43,919,344
Sunstone Hotel Investors, Inc.		281,100		7,513,803
Taubman Centers, Inc.		144,900		7,369,614
U-Store-It Trust		251,900		5,176,545
United Dominion Realty Trust, Inc.		425,942		13,540,696
Ventas, Inc.		178,600		7,558,352
Vornado Realty Trust		208,000		25,272,000
Weingarten Realty Investors		167,700		7,732,647
				586,993,992
TOTAL COMMON STOCKS - 99.36%			$	652,308,331
(Cost: $467,773,097)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Banks - 0.31%
Rabobank USA Financial Corp.,
5.28%, 1-2-07	$	2,000		1,999,707
Multiple Industry - 0.33%
Honeywell International Inc.,
5.27%, 1-9-07		2,183		2,180,443
TOTAL SHORT-TERM SECURITIES - 0.64%			$	4,180,150
(Cost: $4,180,150)
TOTAL INVESTMENT SECURITIES - 100.00%			$	656,488,481
(Cost: $471,953,247)

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

The Investments of Ivy Small Cap Value Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Aircraft - 2.12%
K&F Industries Holdings, Inc.		38,500	$	874,335
LMI Aerospace, Inc.		46,700		721,048
Orbital Sciences Corporation		83,800		1,545,272
				3,140,655
Aluminum - 0.94%
Century Aluminum Company		31,041		1,387,067
Apparel - 1.82%
Payless ShoeSource, Inc.		49,400		1,621,308
Phillips-Van Heusen Corporation		21,646		1,085,980
				2,707,288
Banks - 10.67%
Boston Private Financial Holdings, Inc.		63,700		1,795,066
Cathay General Bancorp		32,800		1,132,748
Central Pacific Financial Corp.		35,000		1,356,600
Columbia Banking System, Inc.		22,300		782,841
First Midwest Bancorp, Inc.		52,400		2,025,784
First Niagara Financial Group, Inc.	153,700			2,282,445
First State Bancorporation		32,800		811,964
KBW, Inc.		53,300		1,566,487
Taylor Capital Group, Inc.		28,400		1,037,452
Umpqua Holdings Corporation		58,474		1,720,305
Wintrust Financial Corporation		27,400		1,315,885
				15,827,577
Broadcasting - 0.45%
Outdoor Channel Holdings, Inc.		52,400		670,982
Business Equipment and Services - 9.55%
Brink's Company (The)		58,700		3,752,104
CACI International Inc		20,400		1,152,600
Education Realty Trust, Inc.		77,800		1,149,106
H&E Equipment Services, Inc.		31,300		774,988
Lennox International Inc.		62,248		1,905,411
MSC Industrial Direct Co., Inc.		19,900		779,085
Sunterra Corporation		29,039		349,194
Waste Connections, Inc.		52,800		2,193,840
Watson Wyatt & Company Holdings, Inc., Class A		46,700		2,108,505
				14,164,833
Capital Equipment - 3.02%
Actuant Corporation, Class A		21,700		1,034,005
Astec Industries, Inc.		36,100		1,265,846
Gardner Denver, Inc.		41,500		1,548,365
Goodman Global, Inc.		36,421		626,441
				4,474,657
Communications Equipment - 1.42%
Dycom Industries, Inc.		24,200		511,104
Emulex Corporation		41,300		805,763
LoJack Corporation		45,887		782,832
				2,099,699
Computers -- Peripherals - 5.62%
Electronics for Imaging, Inc.		93,600		2,487,420
Imation Corp.		54,900		2,549,007
Lawson Software, Inc.	110,100			813,089
TIBCO Software Inc.	264,500			2,495,558
				8,345,074
Construction Materials - 1.52%
Texas Industries, Inc.		35,100		2,254,473
Containers - 3.07%
AptarGroup, Inc.		14,207		838,781
Jarden Corporation		47,950		1,668,180
Silgan Holdings Inc.		46,651		2,047,046
				4,554,007
Cosmetics and Toiletries - 0.91%
Nu Skin Enterprises, Inc., Class A		74,163		1,351,992
Electronic Components - 1.39%
PMC-Sierra, Inc.	118,100			791,270
Varian Semiconductor Equipment Associates, Inc.		27,800		1,265,456
				2,056,726
Finance Companies - 1.47%
Hanover Insurance Group, Inc. (The)		23,751		1,159,049
Jackson Hewitt Tax Service Inc.		30,100		1,022,497
				2,181,546
Food and Related - 3.95%
Hain Celestial Group, Inc. (The)		86,800		2,705,122
Pilgrim's Pride Corporation		32,900		968,247
Ralcorp Holdings, Inc.		43,100		2,193,359
				5,866,728
Health Care -- Drugs - 1.14%
Axcan Pharma Inc.	118,654			1,692,006
Health Care -- General - 3.81%
DJO Incorporated		90,497		3,875,082
Hologic, Inc.		29,275		1,382,951
PolyMedica Corporation		9,900		400,109
				5,658,142
Hospital Supply and Management - 1.35%
Magellan Health Services, Inc.		46,400		2,002,624
Hotels and Gaming - 5.64%
Morgans Hotel Group Co.		28,816		487,711
Orient-Express Hotels Ltd.		78,700		3,724,084
Pinnacle Entertainment, Inc.		52,000		1,723,280
Shuffle Master, Inc.		48,800		1,277,828
Vail Resorts, Inc.		25,887		1,160,255
				8,373,158
Insurance -- Property and Casualty - 3.77%
Aspen Insurance Holdings Limited		71,700		1,890,012
Endurance Specialty Holdings Ltd.		45,061		1,648,331
Platinum Underwriters Holdings, Ltd.		66,500		2,057,510
				5,595,853
Leisure Time Industry - 0.39%
Marvel Entertainment, Inc.		21,700		583,947
Motion Pictures - 1.14%
Regal Entertainment Group		79,500		1,694,940
Motor Vehicle Parts - 2.46%
Copart, Inc.		47,600		1,428,476
Directed Electronics, Inc.		73,197		837,008
Tenneco Automotive Inc.		56,200		1,389,264
				3,654,748
Non-Residential Construction - 1.41%
Washington Group International, Inc.		35,100		2,098,278
Petroleum -- Domestic - 1.65%
Comstock Resources, Inc.		36,700		1,139,902
Goodrich Petroleum Corporation		35,976		1,301,612
				2,441,514
Petroleum -- Services - 3.40%
Cal Dive International, Inc.		73,700		924,935
Hercules Offshore, Inc.		36,083		1,042,438
Hornbeck Offshore Services, Inc.		26,888		959,902
Oceaneering International, Inc.		27,100		1,075,870
Universal Compression Holdings, Inc.		16,800		1,043,448
				5,046,593
Real Estate Investment Trust - 4.10%
Arbor Realty Trust, Inc.		34,900		1,050,141
BioMed Realty Trust, Inc.		44,300		1,266,980
Corporate Office Properties Trust		29,800		1,504,006
DCT Industrial Trust Inc.		90,400		1,066,720
Innkeepers USA Trust		76,800		1,190,400
				6,078,247
Restaurants - 0.82%
Landry's Restaurants, Inc.		40,624		1,222,376
Retail -- General Merchandise - 2.21%
BJ's Wholesale Club, Inc.		59,200		1,841,712
Saks Incorporated		80,800		1,439,856
				3,281,568
Retail -- Specialty Stores - 3.84%
Big 5 Sporting Goods Corporation		36,300		885,901
Borders Group, Inc.		61,800		1,381,230
Genesco Inc.		41,200		1,536,760
Guitar Center, Inc.		13,200		599,412
Hot Topic, Inc.		75,600		1,008,126
Talbots, Inc. (The)		11,927		287,441
				5,698,870
Savings and Loans - 1.49%
Sterling Financial Corporation		38,548		1,302,922
WSFS Financial Corporation		13,492		903,155
				2,206,077
Security and Commodity Brokers - 3.17%
GFI Group Inc.		15,000		933,150
National Financial Partners Corp.		13,303		584,933
Piper Jaffray Companies		48,900		3,185,835
				4,703,918
Timesharing and Software - 2.80%
Hyperion Solutions Corporation		38,100		1,367,980
Per-Se Technologies, Inc.		82,600		2,294,215
TradeStation Group, Inc.		35,400		486,573
				4,148,768
Trucking and Shipping - 1.25%
Kirby Corporation		54,300		1,853,259
Utilities -- Electric - 3.38%
Black Hills Corporation		44,000		1,625,360
ITC Holdings Corp.		33,200		1,324,680
PNM Resources, Inc.		66,300		2,061,930
				5,011,970
TOTAL COMMON STOCKS - 97.14%			$	144,130,160
(Cost: $129,711,688)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Multiple Industry - 1.51%
Honeywell International Inc.,
5.27%, 1-9-07	$	2,242		2,239,374
Security and Commodity Brokers - 1.35%
UBS Finance Delaware LLC (UBS AG),
5.27%, 1-2-07		2,000		1,999,707
TOTAL SHORT-TERM SECURITIES - 2.86%			$	4,239,081
(Cost: $4,239,081)
TOTAL INVESTMENT SECURITIES - 100%			$	148,369,241
(Cost: $133,950,769)

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

The Investments of Ivy Value Fund
December 31, 2006
COMMON STOCKS	Shares			Value
Aircraft - 2.68%
Lockheed Martin Corporation		9,000	$	828,630
Raytheon Company		25,200		1,330,560
				2,159,190
Banks - 10.27%
Bank of America Corporation		69,856		3,729,612
Citigroup Inc.		39,813		2,217,584
National City Corporation		12,200		446,032
Wachovia Corporation		18,050		1,027,948
Wells Fargo & Company		24,000		853,440
				8,274,616
Beverages - 1.48%
Diageo plc, ADR		15,050		1,193,616
Business Equipment and Services - 0.95%
Waste Management, Inc.		20,900		768,493
Capital Equipment - 0.88%
Illinois Tool Works Inc.		15,380		710,402
Chemicals -- Petroleum and Inorganic - 1.02%
E.I. du Pont de Nemours and Company		16,850		820,763
Chemicals -- Specialty - 1.47%
Air Products and Chemicals, Inc.		7,800		548,184
Mosaic Company*		29,600		632,256
				1,180,440
Communications Equipment - 0.83%
Cisco Systems, Inc.*		13,500		368,482
Nokia Corporation, Series A, ADR		15,000		304,800
				673,282
Computers -- Main and Mini - 5.52%
Hewlett-Packard Company (A)		84,200		3,468,198
Xerox Corporation*		57,600		976,320
				4,444,518
Computers -- Peripherals - 0.93%
Adobe Systems Incorporated (A)*		18,300		751,855
Defense - 1.86%
Armor Holdings, Inc.*		10,100		553,985
General Dynamics Corporation		12,700		944,245
				1,498,230
Electronic Components - 0.55%
Motorola, Inc.		21,700		446,152
Finance Companies - 5.20%
Capital One Financial Corporation (A)		16,800		1,290,576
Fannie Mae		24,000		1,425,360
Freddie Mac		21,700		1,473,430
				4,189,366
Food and Related - 1.28%
General Mills, Inc.		17,900		1,031,040
Furniture and Furnishings - 0.73%
Masco Corporation		19,700		588,439
Health Care -- Drugs - 3.51%
Endo Pharmaceuticals Holdings Inc.*		12,200		336,293
McKesson Corporation		23,200		1,176,240
Pfizer Inc.		50,800		1,315,720
				2,828,253
Health Care -- General - 1.89%
Boston Scientific Corporation (A)*		41,300		709,534
Da Vita Inc.*		14,300		813,384
				1,522,918
Hospital Supply and Management - 2.69%
Aetna Inc.		22,400		967,232
Coventry Health Care, Inc. (A)*		23,900		1,196,195
				2,163,427
Insurance -- Life - 3.71%
UnumProvident Corporation	143,700			2,986,086
Insurance -- Property and Casualty - 5.47%
Assurant, Inc.		14,400		795,600
Everest Re Group, Ltd. (A)		10,000		981,100
MBIA Inc.		6,900		504,114
St. Paul Companies, Inc. (The)		39,652		2,128,916
				4,409,730
Metal Fabrication - 2.10%
Loews Corporation, Carolina Group		26,100		1,689,192
Motion Pictures - 0.32%
News Corporation Limited, Class A		12,000		257,760
Multiple Industry - 3.81%
Altria Group, Inc.		31,300		2,686,166
Genworth Financial, Inc.		11,300		386,573
				3,072,739
Petroleum -- International - 12.48%
Anadarko Petroleum Corporation		19,000		826,880
ChevronTexaco Corporation		36,000		2,647,080
ConocoPhillips		13,700		985,715
Devon Energy Corporation		15,800		1,059,864
Exxon Mobil Corporation		59,106		4,529,293
				10,048,832
Railroad - 1.67%
Union Pacific Corporation		14,600		1,343,492
Real Estate Investment Trust - 1.04%
Duke Realty Corporation		20,400		834,360
Restaurants - 1.11%
McDonald's Corporation		20,108		891,388
Retail -- General Merchandise - 1.81%
Dollar General Corporation (A)		42,750		686,565
Family Dollar Stores, Inc.		26,200		768,446
				1,455,011
Retail -- Specialty Stores - 0.17%
Home Depot, Inc. (The)		3,400		136,544
Security and Commodity Brokers - 8.86%
Bear Stearns Companies Inc. (The)		6,100		992,958
CIT Group Inc.		17,400		970,398
J.P. Morgan Chase & Co.		71,602		3,458,377
Morgan Stanley		21,100		1,718,173
				7,139,906
Utilities -- Electric - 3.62%
Energy East Corporation		32,300		801,040
Exelon Corporation		7,600		470,364
Mirant Corporation*		24,000		757,680
NRG Energy, Inc.*		15,800		884,958
				2,914,042
Utilities -- Gas and Pipeline - 1.24%
FirstEnergy Corp.		16,600		999,486
Utilities -- Telephone - 3.22%
AT&T Inc.		45,100		1,612,325
Verizon Communications Inc.		26,300		979,412
				2,591,737
TOTAL COMMON STOCKS - 94.37%			$	76,015,305
(Cost: $59,387,233)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Multiple Industry - 3.15%
Honeywell International Inc.
5.27%, 1-9-07	$	2,536		2,533,030
Security and Commodity Brokers - 2.48%
UBS Finance Delaware LLC (UBS AG)
5.27%, 1-2-07		2,000		1,999,707
TOTAL SHORT-TERM SECURITIES - 5.63%			$	4,532,737
(Cost: $4,532,737)
TOTAL INVESTMENT SECURITIES - 100.00%			$	80,548,042
(Cost: $63,919,970)

Notes to Schedule of Investments
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts and REMIC - Real Estate Mortgage Investment Conduit.
*No dividends were paid during the preceding 12 months.
(A)Securities serve as cover for the following written options outstanding at December 31, 2006:
	Underlying Security	Contracts Subject to Call	Expiration Month/ Exercise Price	Premium Received			Market Value
	Adobe Systems Incorporated	183	January/47.5		$	8,052	$	732
	Boston Scientific Corporation:	159	January/19			2,862		1,590
		110	February/19			3,190		2,734
		144	March/19			3,658		5,655
	Hewlett-Packard Company	112	January/45			4,928		560
					$	22,690	$	11,271
	Underlying Security	Contracts Subject to Put	Expiration Month/ Exercise Price	Premium Received			Market Value
	Capital One Financial       Corporation	26	January/75		$	4,342	$	1,950
	Coventry Health Care, Inc.	37	January/43.375			5,439		278
	Dollar General Corporation	194	January/12.5			6,111		485
	Everest Re Group, Ltd.	26	January/95			2,912		910
					$	18,804	$	3,623

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 Assistant Secretary

Date: March 1, 2007

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

By      /s/Henry J. Herrmann

         Henry J. Herrmann, Principal Executive Officer

Date: March 1, 2007

By      /s/Theodore W. Howard

         Theodore W. Howard, Principal Financial Officer

Date: March 1, 2007

EX-99.CERT

         Exhibit 99.CERT

CERTIFICATION

I, Henry J. Herrmann, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: March 1, 2007	/s/Henry J. Herrmann
	Henry J. Herrmann, Principal Executive Officer

CERTIFICATION

I, Theodore W. Howard, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: March 1 2007	/s/Theodore W. Howard
	Theodore W. Howard, Principal Financial Officer