N-Q 1 ivyfundstrust_nqfile.htm MAIN PART
 

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                
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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