N-CSRS 1 ivyt_mainpart093007.htm MAIN PART

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-01028

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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: September 30, 2007

ITEM 1. REPORTS TO STOCKHOLDERS.

Semiannual Report
September 30, 2007

Ivy Balanced Fund
Ivy Bond Fund
Ivy Cundill Global Value Fund
Ivy Dividend Income Fund
Ivy European Opportunities Fund
Ivy Global Natural Resources Fund
Ivy International Balanced Fund
Ivy International Core Equity Fund
Ivy International Growth Fund
Ivy Managed European/Pacific Fund
Ivy Managed International Opportunities Fund
Ivy Mortgage Securities Fund
Ivy Pacific Opportunities Fund
Ivy Real Estate Securities Fund
Ivy Small Cap Value Fund
Ivy Value Fund

3		President's Letter
5		Illustration of Fund Expenses
15		Ivy Balanced Fund
31		Ivy Bond Fund
56		Ivy Cundill Global Value Fund
74		Ivy Dividend Income Fund
89		Ivy European Opportunities Fund
105		Ivy Global Natural Resources Fund
127		Ivy International Balanced Fund
146		Ivy International Core Equity Fund
162		Ivy International Growth Fund
179		Ivy Managed European/Pacific Fund
190		Ivy Managed International Opportunities Fund
201		Ivy Mortgage Securities Fund
226		Ivy Pacific Opportunities Fund
246		Ivy Real Estate Securities Fund
260		Ivy Small Cap Value Fund
275		Ivy Value Fund
289		Notes to Financial Statements
328		Renewal of Investment Management Agreement
333		Proxy Voting Information
334		Quarterly Portfolio Schedule Information
335		IRA Disclosure

This report is submitted for the general information of the shareholders of Ivy Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by a current Ivy Funds prospectus and current performance information.

President's Letter
September 30, 2007

Dear Shareholder:

It's been a rewarding but volatile six months for equity investors. Stock markets around the globe generally provided attractive returns, with energy stocks outpacing all other sectors. Since the spring it has appeared to us that large company domestic growth stocks have generally come back in favor, boosted by low valuations and solid overseas growth for U.S.-based multinational companies. Also, quality now seems to be a more important equity attribute than we have seen in several years.

For the bond market, it's also been a bumpy road. Corporate and mortgage bond prices faced greater volatility as a subprime lending crisis of global dimensions unfolded. The U.S. dollar weakened against most foreign currencies, making dollar-denominated bonds less attractive. High yield investors, meanwhile, demanded greater income to help offset concern about bond defaults and the potential for a U.S. recession. After months of expressing anxiety about lingering consumer inflation, the Federal Reserve changed policy in September and reduced its short-term interest rate target by 50 basis points (0.50 percent) to 4.75 percent. More cuts may follow.

Enclosed is our report on your Ivy Fund's operations for the six months ended September 30, 2007. The S&P 500 Index advanced 8.44 percent over the period while the Lehman Brothers Aggregate Bond Index rose 2.31 percent.

U.S. growth slows

Dragged down by the worst housing market in a generation, the U.S. economy's four-year-old expansion is slowing. However, growth still appears robust for most of Asia. North America was fortunate to have a relatively mild hurricane season, and this may have been a factor in helping to keep a lid on gasoline prices. This year the biggest financial storm was found not in nature, but in the commercial paper and mortgage markets. Liquidity dried up for both business and consumer borrowers with less than perfect credit. Consequently, the financial and consumer discretionary sectors of the S&P 500 have been hard hit over the past six months, with each falling while most other sectors rose.

The economic news is mixed, as you can see in the Economic Snapshot chart below. Overall inflation is the same as it was six months ago. Unemployment is slightly higher than six months ago but is still relatively low. However, the cost of financing a home is slightly higher. Overall GDP growth is solid, while oil prices are substantially higher.

Economic Snapshot
	9-30-2007			3-31-2007

U.S. unemployment rate		4.70	%		4.40	%
Inflation (U.S. Consumer Price Index)		2.80	%		2.80	%
U.S. GDP		3.90	%		1.50	%
30-year fixed mortgage rate		6.28	%		6.13	%
Oil price per barrel	$	81.66		$	65.87

Source: Bloomberg, U.S. Department of Labor

The U.S. Consumer Price Index is the government's measure of the change in the retail cost of goods and services. Gross domestic product measures year-over-year changes in the output of goods and services. Mortgage rates shown reflect the average rate on a conventional loan with a 60-day lender commitment. Oil prices reflect the market price of West Texas intermediate grade crude.

Stock valuations for companies in the S&P 500 appear reasonable to us. As we look forward, even though past performance does not guarantee future results, presidential election years typically have been positive for investors. However, we recommend a prudent level of caution in 2008, as we believe that the range of possibilities for investors is as wide as the current field of presidential candidates. As always, we believe that maintaining a well-rounded portfolio is an essential element for securing your long-term financial future. In both politics and investing, it may be wise to remember that nothing - good or bad - can ever be assured.

Our commitment

At the Ivy Funds, we consistently focus on offering you strategies that emphasize participation in positive markets, as well as a very strong effort to manage risk. We will strive to earn your continued confidence for many years to come.

Respectfully,

Henry J. Herrmann, CFA
President

The opinions expressed in this letter are those of the President of Ivy Funds, and are current only through the end of the period of the report, as stated on the cover. The President's views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.

Illustration of Fund Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution and service fees, and other Fund expenses. The following tables are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six-month period ended September 30, 2007.

Actual Expenses

The first line for each share class in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $7,500 account value divided by $1,000 = 7.5), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. There may be additional fees charged to holders of certain accounts that are not included in the expenses shown in the tables. These fees apply to Individual Retirement Accounts (IRAs), IRA Rollovers, Roth IRAs, Conversion Roth IRAs, Simplified Employee Pension (SEP), Simple IRAs, Tax-Sheltered Accounts (TSAs), Keogh Plans, Owner Only 401(k) (Exclusive K) Plans and Final Pay Plans. As of the close of the six months covered by the tables, a customer is charged an annual fee of $15 within each plan type. This fee is waived for IRA Rollovers and Conversion Roth IRAs if the customer owns another type of IRA. Coverdell Education Savings Account plans are charged an annual fee of $10 per customer. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value as such additional expenses are not reflected in the information provided in the expense tables. Additional fees have the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

The second line for each share class of the following tables provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second line of each share class in the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Ivy Balanced Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,117.10		1.40	%	$	7.41
Class B		1,000		1,111.60		2.32			12.25
Class C		1,000		1,112.70		2.12			11.20
Class E**		1,000		1,116.30		1.19			6.24
Class I**		1,000		1,116.70		1.06			5.61
Class Y		1,000		1,117.70		1.29			6.88
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,018.06		1.40	%	$	7.06
Class B		1,000		1,013.45		2.32			11.68
Class C		1,000		1,014.46		2.12			10.68
Class E**		1,000		1,019.10		1.19			6.06
Class I**		1,000		1,019.75		1.06			5.35
Class Y		1,000		1,018.60		1.29			6.56

Ivy Bond Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,001.50		1.21	%	$	6.10
Class B		1,000		995.70		2.36			11.77
Class C		1,000		997.30		2.02			10.09
Class E**		1,000		1,000.30		1.33			6.60
Class I**		1,000		1,003.20		0.95			4.71
Class Y		1,000		1,000.80		1.38			6.90
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,019.01		1.21	%	$	6.16
Class B		1,000		1,013.23		2.36			11.88
Class C		1,000		1,014.95		2.02			10.18
Class E**		1,000		1,018.40		1.33			6.76
Class I**		1,000		1,020.32		0.95			4.85
Class Y		1,000		1,018.16		1.38			6.96

Ivy Cundill Global Value Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	948.40		1.55	%	$	7.60
Class B		1,000		943.50		2.43			11.86
Class C		1,000		945.20		2.20			10.70
Class E**		1,000		949.50		2.05			9.94
Class I**		1,000		958.20		1.20			5.78
Class Y		1,000		949.80		1.20			5.85
Advisor Class***		1,000		950.30		1.04			5.07
Class II***		1,000		950.50		1.11			5.46
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,017.28		1.55	%	$	7.87
Class B		1,000		1,012.88		2.43			12.28
Class C		1,000		1,014.05		2.20			11.08
Class E**		1,000		1,014.79		2.05			10.38
Class I**		1,000		1,019.07		1.20			6.06
Class Y		1,000		1,019.06		1.20			6.06
Advisor Class***		1,000		1,019.84		1.04			5.25
Class II***		1,000		1,019.52		1.11			5.65

Ivy Dividend Income Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,131.40		1.37	%	$	7.35
Class B		1,000		1,125.70		2.34			12.44
Class C		1,000		1,127.70		2.15			11.49
Class E**		1,000		1,125.30		2.17			11.48
Class I**		1,000		1,129.40		1.01			5.32
Class Y		1,000		1,132.50		1.25			6.72
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,018.22		1.37	%	$	6.96
Class B		1,000		1,013.34		2.34			11.78
Class C		1,000		1,014.31		2.15			10.88
Class E**		1,000		1,014.19		2.17			10.98
Class I**		1,000		1,020.02		1.01			5.15
Class Y		1,000		1,018.82		1.25			6.36

Ivy European Opportunities Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,081.80		1.57	%	$	8.22
Class B		1,000		1,077.70		2.34			12.15
Class C		1,000		1,078.20		2.24			11.74
Class E**		1,000		1,080.10		1.30			6.76
Class I**		1,000		1,082.50		1.17			6.04
Class Y		1,000		1,083.00		1.41			7.39
Advisor Class***		1,000		1,084.00		1.15			6.04
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,017.20		1.57	%	$	7.97
Class B		1,000		1,013.35		2.34			11.78
Class C		1,000		1,013.82		2.24			11.38
Class E**		1,000		1,018.54		1.30			6.56
Class I**		1,000		1,019.21		1.17			5.96
Class Y		1,000		1,017.98		1.41			7.16
Advisor Class***		1,000		1,019.29		1.15			5.86

Ivy Global Natural Resources Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,270.30		1.29	%	$	7.38
Class B		1,000		1,265.30		2.08			11.78
Class C		1,000		1,265.80		1.99			11.33
Class E**		1,000		1,254.40		2.28			12.74
Class I**		1,000		1,263.40		1.03			5.77
Class R		1,000		1,268.50		1.57			8.96
Class Y		1,000		1,270.70		1.20			6.81
Advisor Class***		1,000		1,272.20		0.96			5.45
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,018.61		1.29	%	$	6.56
Class B		1,000		1,014.63		2.08			10.48
Class C		1,000		1,015.07		1.99			10.08
Class E**		1,000		1,013.64		2.28			11.48
Class I**		1,000		1,019.93		1.03			5.15
Class R		1,000		1,017.22		1.57			7.97
Class Y		1,000		1,019.07		1.20			6.06
Advisor Class***		1,000		1,020.25		0.96			4.85

Ivy International Balanced Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,065.30		1.31	%	$	6.82
Class B		1,000		1,059.40		2.29			11.84
Class C		1,000		1,061.10		2.05			10.61
Class E**		1,000		1,060.30		2.03			10.40
Class I**		1,000		1,064.90		0.99			5.06
Class Y		1,000		1,065.50		1.28			6.61
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,018.50		1.31	%	$	6.66
Class B		1,000		1,013.58		2.29			11.58
Class C		1,000		1,014.79		2.05			10.38
Class E**		1,000		1,014.89		2.03			10.28
Class I**		1,000		1,020.13		0.99			4.95
Class Y		1,000		1,018.67		1.28			6.46

Ivy International Core Equity Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,136.10		1.54	%	$	8.22
Class B		1,000		1,131.80		2.35			12.58
Class C		1,000		1,132.50		2.21			11.84
Class E**		1,000		1,133.30		2.33			12.27
Class I**		1,000		1,138.30		1.16			6.09
Class Y		1,000		1,136.60		1.41			7.58
Advisor Class***		1,000		1,134.00		1.82			9.71
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,017.36		1.54	%	$	7.77
Class B		1,000		1,013.30		2.35			11.88
Class C		1,000		1,013.99		2.21			11.18
Class E**		1,000		1,013.40		2.33			11.78
Class I**		1,000		1,019.27		1.16			5.86
Class Y		1,000		1,017.98		1.41			7.16
Advisor Class***		1,000		1,015.93		1.82			9.17

Ivy International Growth Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,156.40		1.45	%	$	7.87
Class B		1,000		1,150.70		2.49			13.44
Class C		1,000		1,150.80		2.47			13.33
Class E**		1,000		1,159.20		1.30			6.91
Class I**		1,000		1,170.10		1.18			6.29
Class Y		1,000		1,156.40		1.46			7.87
Advisor Class***		1,000		1,138.40		4.57			24.48
Class II***		1,000		1,157.00		1.20			6.47
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,017.82		1.45	%	$	7.37
Class B		1,000		1,012.61		2.49			12.58
Class C		1,000		1,012.68		2.47			12.48
Class E**		1,000		1,018.57		1.30			6.56
Class I**		1,000		1,019.17		1.18			5.96
Class Y		1,000		1,017.74		1.46			7.36
Advisor Class***		1,000		1,002.15		4.57			22.92
Class II***		1,000		1,019.06		1.20			6.06

Ivy Managed European/Pacific Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 4-2-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,191.00		1.27	%	$	6.90
Class B		1,000		1,188.00		2.06			11.16
Class C		1,000		1,188.00		2.03			11.05
Class E**		1,000		1,192.00		1.20			6.58
Class I**		1,000		1,194.00		0.94			5.16
Class Y		1,000		1,192.00		1.19			6.47
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,018.72		1.27	%	$	6.46
Class B		1,000		1,014.76		2.06			10.38
Class C		1,000		1,014.88		2.03			10.28
Class E**		1,000		1,019.05		1.20			6.06
Class I**		1,000		1,020.34		0.94			4.75
Class Y		1,000		1,019.10		1.19			6.06

Ivy Managed International Opportunities Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 4-2-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,125.00		0.89	%	$	4.68
Class B		1,000		1,122.00		1.69			8.91
Class C		1,000		1,122.00		1.63			8.59
Class E**		1,000		1,126.00		0.85			4.46
Class I**		1,000		1,127.00		0.29			3.08
Class Y		1,000		1,126.00		0.85			4.46
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,020.63		0.89	%	$	4.45
Class B		1,000		1,016.62		1.69			8.57
Class C		1,000		1,016.88		1.63			8.27
Class E**		1,000		1,020.83		0.85			4.24
Class I**		1,000		1,047.59		0.29			3.07
Class Y		1,000		1,020.79		0.85			4.34

Ivy Mortgage Securities Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,005.00		1.14	%	$	5.71
Class B		1,000		1,000.10		2.12			10.70
Class C		1,000		1,001.10		1.92			9.61
Class E**		1,000		1,003.70		1.29			6.41
Class I**		1,000		1,010.00		0.79			3.92
Class Y		1,000		1,005.70		1.01			5.11
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,019.37		1.14	%	$	5.76
Class B		1,000		1,014.42		2.12			10.78
Class C		1,000		1,015.43		1.92			9.67
Class E**		1,000		1,018.58		1.29			6.56
Class I**		1,000		1,021.11		0.79			4.04
Class Y		1,000		1,020.02		1.01			5.15

Ivy Pacific Opportunities Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,370.80		1.77	%	$	10.55
Class B		1,000		1,364.10		2.77			16.43
Class C		1,000		1,365.60		2.51			14.90
Class E**		1,000		1,375.00		1.45			8.55
Class I**		1,000		1,377.70		1.34			7.85
Class Y		1,000		1,372.30		1.56			9.25
Advisor Class***		1,000		1,374.20		1.24			7.36
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,016.21		1.77	%	$	8.97
Class B		1,000		1,011.18		2.77			13.98
Class C		1,000		1,012.47		2.51			12.68
Class E**		1,000		1,017.81		1.45			7.37
Class I**		1,000		1,018.37		1.34			6.76
Class Y		1,000		1,017.23		1.56			7.87
Advisor Class***		1,000		1,018.84		1.24			6.26

Ivy Real Estate Securities Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	927.70		1.63	%	$	7.90
Class B		1,000		922.80		2.63			12.69
Class C		1,000		923.50		2.44			11.73
Class E**		1,000		916.60		2.56			12.17
Class I**		1,000		924.50		1.16			5.48
Class R		1,000		927.20		1.68			8.09
Class Y		1,000		928.80		1.38			6.65
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,016.88		1.63	%	$	8.27
Class B		1,000		1,011.86		2.63			13.28
Class C		1,000		1,012.84		2.44			12.28
Class E**		1,000		1,012.25		2.26			12.88
Class I**		1,000		1,019.26		1.16			5.86
Class R		1,000		1,016.66		1.68			8.47
Class Y		1,000		1,018.16		1.38			6.96

Ivy Small Cap Value Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	984.60		1.73	%	$	8.63
Class B		1,000		979.30		2.82			14.05
Class C		1,000		980.90		2.52			12.58
Class E**		1,000		986.40		1.27			6.26
Class I**		1,000		991.50		1.18			5.87
Class Y		1,000		986.00		1.38			6.85
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,016.38		1.73	%	$	8.77
Class B		1,000		1,010.91		2.82			14.28
Class C		1,000		1,012.42		2.52			12.78
Class E**		1,000		1,018.72		1.27			6.46
Class I**		1,000		1,019.14		1.18			5.96
Class Y		1,000		1,018.14		1.38			6.96

Ivy Value Fund Expenses
For the Six Months Ended September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*

Based on Actual Fund Return ⁽¹⁾
Class A	$	1,000	$	1,046.20		1.48	%	$	7.57
Class B		1,000		1,040.90		2.44			12.45
Class C		1,000		1,041.80		2.34			11.94
Class E**		1,000		1,044.90		1.18			5.93
Class I**		1,000		1,045.30		1.08			5.42
Class Y		1,000		1,047.60		1.30			6.65
Based on 5% Return ⁽²⁾
Class A	$	1,000	$	1,017.63		1.48	%	$	7.47
Class B		1,000		1,012.86		2.44			12.28
Class C		1,000		1,013.33		2.34			11.78
Class E**		1,000		1,019.17		1.18			5.96
Class I**		1,000		1,019.67		1.08			5.45
Class Y		1,000		1,018.54		1.30			6.56

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the tables), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2007, and divided by 365.

**Actual inception date of Class E and Class I shares for each Fund is 4-2-07 (the date on which shares were first acquired by shareholders). The calculations are based on 181 days in the period ended September 30, 2007

***Class closed to investment.

(1)This section uses the Fund's actual total return and actual Fund expenses. It is a guide to the actual expenses paid by the Fund in the period. The "Ending Account Value" shown is computed using the Fund's actual return and the "Expenses Paid During Period" column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the fourth column.

(2)This section uses a hypothetical 5% annual return and actual Fund expenses. It helps to compare the Fund's ongoing costs with other mutual funds. A shareholder can compare the Fund's ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads, redemption fees or exchange fees.

SHAREHOLDER SUMMARY OF IVY BALANCED FUND
Portfolio Highlights

On September 30, 2007, Ivy Balanced Fund had net assets totaling $100,632,195 invested in a diversified portfolio of:

67.69%		Domestic Common Stocks
14.49%		United States Government and Government Agency Obligations
8.21%		Cash and Cash Equivalents
4.80%		Foreign Common Stocks
3.85%		Domestic Corporate Debt Securities
0.57%		Other Government Securities
0.39%		Foreign Corporate Debt Securities

Asset Allocation

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:

Stocks	$	72.49
Technology Stocks	$	15.27
Health Care Stocks	$	10.51
Financial Services Stocks	$	9.32
Energy Stocks	$	8.02
Consumer Nondurables Stocks	$	7.69
Miscellaneous Stocks	$	5.26
Consumer Services Stocks	$	3.94
Capital Goods Stocks	$	3.49
Multi-Industry Stocks	$	3.30
Utilities Stocks	$	3.08
Raw Materials Stocks	$	2.61
Bonds	$	19.30
United States Government and Government Agency Obligations	$	14.49
Corporate Debt Securities	$	4.24
Other Government Securities	$	0.57
Cash and Cash Equivalents	$	8.21

The Investments of Ivy Balanced Fund
September 30, 2007 (Unaudited)
COMMON STOCKS	Shares			Value


Air Transportation - 0.81%
Southwest Airlines Co.		55,300	$	818,440

Aircraft - 1.73%
Boeing Company (The)		16,600		1,742,834

Banks - 2.32%
Bank of America Corporation		16,600		834,482
Northern Trust Corporation		22,600		1,498,267
				2,332,749
Beverages - 4.48%
Anheuser-Busch Companies, Inc.		15,000		749,850
Brown-Forman Corporation, Class B		12,400		928,884
Coca-Cola Company (The)		18,700		1,074,689
PepsiCo, Inc.		24,000		1,758,240
				4,511,663
Business Equipment and Services - 0.98%
Pitney Bowes Inc.		21,800		990,156

Chemicals - Petroleum and Inorganic - 1.16%
E.I. du Pont de Nemours and Company		23,600		1,169,616

Chemicals - Specialty - 1.45%
Air Products and Chemicals, Inc.		14,900		1,456,624

Communications Equipment - 5.62%
Cisco Systems, Inc.		69,800		2,312,125
Nokia Corporation, Series A, ADR		56,200		2,131,666
QUALCOMM Incorporated		28,600		1,208,350
				5,652,141
Computers - Micro - 1.65%
Apple Inc.*		10,800		1,657,638

Computers - Peripherals - 1.16%
Microsoft Corporation		39,758		1,171,469

Defense - 2.53%
General Dynamics Corporation		30,200		2,550,994

Electrical Equipment - 1.19%
Emerson Electric Co.		22,400		1,192,128

Electronic Components - 2.58%
Microchip Technology Incorporated		34,700		1,259,610
Texas Instruments Incorporated		36,500		1,335,535
				2,595,145
Finance Companies - 1.05%
American Express Company		17,800		1,056,786

Food and Related - 1.35%
Wm. Wrigley Jr. Company		21,100		1,355,253

Health Care - Drugs - 5.25%
Abbott Laboratories		27,700		1,485,274
Allergan, Inc.		22,200		1,431,234
Genentech, Inc.*		13,700		1,068,874
Gilead Sciences, Inc.*		31,800		1,299,189
				5,284,571
Health Care - General - 4.04%
DENTSPLY International Inc.		35,000		1,457,925
Johnson & Johnson		26,200		1,721,340
Zimmer Holdings, Inc.*		10,900		882,791
				4,062,056
Hospital Supply and Management - 1.22%
Medtronic, Inc.		21,800		1,229,738

Hotels and Gaming - 1.56%
Las Vegas Sands, Inc.*		11,800		1,574,356

Household - General Products - 1.86%
Colgate-Palmolive Company		26,300		1,875,716

Insurance - Life - 1.30%
Aflac Incorporated		23,000		1,311,920

Insurance - Property and Casualty - 1.18%
Berkshire Hathaway Inc., Class B*		300		1,185,600

Motion Pictures - 1.39%
News Corporation Limited, Class A		63,400		1,394,166

Multiple Industry - 3.30%
Altria Group, Inc.		9,800		681,394
General Electric Company		63,680		2,636,352
				3,317,746
Non-Residential Construction - 2.30%
Fluor Corporation		16,100		2,318,078

Petroleum - International - 5.55%
BP p.l.c., ADR		19,000		1,317,650
Chevron Corporation		13,500		1,263,330
Exxon Mobil Corporation		32,400		2,998,944
				5,579,924
Petroleum - Services - 2.47%
Schlumberger Limited		23,700		2,488,500

Publishing - 0.99%
Meredith Corporation		17,400		997,020

Retail - General Merchandise - 0.95%
Wal-Mart Stores, Inc.		21,900		955,935

Retail - Specialty Stores - 0.68%
Best Buy Co., Inc.		14,800		681,096

Security and Commodity Brokers - 3.47%
CME Group Inc.		1,500		881,025
J.P. Morgan Chase & Co.		26,800		1,227,976
UBS AG		26,000		1,384,500
				3,493,501
Timesharing and Software - 1.08%
Paychex, Inc.		26,400		1,082,796

Trucking and Shipping - 0.76%
Expeditors International of Washington, Inc.		16,100		761,047

Utilities - Electric - 1.48%
Exelon Corporation		19,700		1,484,592

Utilities - Telephone - 1.60%
AT&T Inc.		38,100		1,612,011

TOTAL COMMON STOCKS - 72.49%			$	72,944,005

(Cost: $48,897,910)

CORPORATE DEBT SECURITIES	Principal Amount in Thousands


Banks - 0.26%
Wells Fargo Bank, N.A.,
7.55%, 6-21-10	$	250		265,169

Beverages - 0.35%
Diageo Capital plc,
3.5%, 11-19-07		350		349,082

Finance Companies - 1.96%
American International Group,
3.85%, 11-26-07 (A)		500		498,721
Banco Hipotecario Nacional:
7.916%, 7-25-09 (A)		7		65
8.0%, 3-31-11 (A)		165		41,364
First Union-Lehman Brothers-Bank of America Commercial Mortgage Trust,
6.56%, 11-18-35		337		337,840
Prudential Insurance Company of America,
6.6%, 5-15-08 (A)		750		754,293
Unilever Capital Corporation,
5.9%, 11-15-32		350		342,045
				1,974,328
Food and Related - 1.19%
Archer-Daniels-Midland Company,
7.0%, 2-1-31		700		777,771
Cargill, Inc.,
6.375%, 6-1-12 (B)		400		415,846
				1,193,617
Insurance - Life - 0.48%
StanCorp Financial Group, Inc.,
6.875%, 10-1-12		450		482,726

TOTAL CORPORATE DEBT SECURITIES - 4.24%			$	4,264,922

(Cost: $4,221,278)


OTHER GOVERNMENT SECURITIES - 0.57%


Canada
Hydro-Quebec,
8.0%, 2-1-13		500	$	573,523
(Cost: $564,391)

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS


Mortgage-Backed Obligations - 4.43%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.23%, 1-1-08	414			412,622
6.0%, 9-1-17		361		366,694
5.0%, 1-1-18		403		396,381
5.5%, 4-1-18		314		313,875
6.5%, 10-1-28		139		142,568
6.5%, 2-1-29		28		28,722
7.0%, 5-1-31		28		29,160
7.5%, 5-1-31		48		50,396
7.0%, 7-1-31		41		42,896
7.0%, 9-1-31		59		61,735
7.0%, 9-1-31		44		45,507
7.0%, 11-1-31		143		149,180
6.5%, 2-1-32		156		161,115
7.0%, 2-1-32		151		157,612
7.0%, 2-1-32		88		92,655
6.5%, 3-1-32		48		49,527
7.0%, 3-1-32		93		97,255
7.0%, 6-1-32		30		31,906
7.0%, 7-1-32		170		177,469
6.5%, 8-1-32		74		75,888
6.0%, 9-1-32		599		602,648
6.5%, 9-1-32		143		147,240
5.5%, 5-1-33		287		282,090
5.5%, 5-1-33		168		165,367
5.5%, 5-1-33		115		112,846
5.5%, 6-1-33		270		264,776
				4,458,130
Treasury Obligations - 10.06%
United States Treasury Bond,
7.5%, 11-15-16		500		607,695
United States Treasury Notes:
3.0%, 2-15-08		900		896,485
4.0%, 3-15-10		800		800,250
4.25%, 10-15-10	2,000			2,011,406
3.875%, 2-15-13	1,250			1,228,711
3.625%, 5-15-13		750		726,562
4.25%, 8-15-13		900		898,594
4.25%, 8-15-15	3,000			2,955,936
				10,125,639

TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 14.49%			$	14,583,769

(Cost: $14,642,928)

SHORT-TERM SECURITIES


Household - General Products - 2.98%
Fortune Brands Inc.,
5.55%, 10-1-07	3,000		3,000,000

Finance Companies - 2.55%
Toyota Motor Credit Corporation,
4.78%, 11-16-07	2,584		2,568,218

Forest and Paper Products - 1.02%
Sonoco Products Co.,
5.6%, 10-1-07	1,028		1,028,000

Retail - General Merchadise - 1.49%
Target Corporation,
5.0%, 10-19-07	1,500		1,496,250

TOTAL SHORT-TERM SECURITIES - 8.04%		$	8,092,468

(Cost: $8,092,468)

TOTAL INVESTMENT SECURITIES - 99.83%		$	100,458,687

(Cost: $76,418,975)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.17%			173,508


NET ASSETS - 100.00%		$	100,632,195

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. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amounted to $1,294,443, or 1.29% of net assets.

(B)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of this security amounted to 0.41% of net assets.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY BALANCED FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $76,419) (Notes 1 and 3)	$	100,459
Cash		4
Receivables:
Dividends and interest		265
Fund shares sold		89
Prepaid and other assets		30

Total assets		100,847

LIABILITIES
Payable to Fund shareholders		66
Accrued management fee (Note 2)		57
Accrued service fee (Note 2)		39
Accrued shareholder servicing (Note 2)		21
Accrued accounting services fee (Note 2)		4
Accrued distribution fee (Note 2)		4
Other		24

Total liabilities		215

Total net assets	$	100,632

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	74,391
Accumulated undistributed income :
Accumulated undistributed net investment income		115
Accumulated undistributed net realized gain on investment transactions		2,086
Net unrealized appreciation in value of investments		24,040

Net assets applicable to outstanding units of capital	$	100,632

Net asset value per share (net assets divided by shares outstanding):
Class A	$17.98
Class B	$17.93
Class C	$17.94
Class E	$17.99
Class I	$17.98
Class Y	$17.98
Capital shares outstanding:
Class A		3,633
Class B		160
Class C		192
Class E		6
Class I		6
Class Y		1,602

See Notes to Financial Statements.

Statement of Operations
      IVY BALANCED FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                               (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	650
Dividends (net of foreign withholding taxes of $12)		625

Total income		1,275

Expenses (Note 2):
Investment management fee		340
Service fee:
Class A		75
Class B		3
Class C		4
Class Y		36
Shareholder servicing:
Class A		76
Class B		6
Class C		3
Class E		––	*
Class I		––	*
Class Y		22
Accounting services fee		25
Distribution fee:
Class A		3
Class B		10
Class C		12
Class E		––	*
Audit fees		14
Custodian fees		3
Legal fees		1
Other		54

Total expenses		687

Net investment income		588

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		1,435
Unrealized appreciation in value of investments during the period		8,633

Net gain on investments		10,068

Net increase in net assets resulting from operations	$	10,656

*Not shown due to rounding

See Notes to Financial Statements.

Statement of Changes in Net Assets
IVY BALANCED FUND
(In Thousands) (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	588		$	987
Realized net gain on investments			1,435			3,925
Unrealized appreciation			8,633			1,967

Net increase in net assets resulting from operations			10,656			6,879

Distributions to shareholders from (Note 1F): ⁽¹⁾
Net investment income:
Class A			(326	)		(661	)
Class B			(1	)		(3	)
Class C			(5	)		(11	)
Class E			(1	)		NA
Class I			(1	)		NA
Class Y			(165	)		(411	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(––	)

			(499	)		(1,086	)

Capital share transactions (Note 5)			(2,865	)	(11,344		)

Total increase (decrease)			7,292			(5,551	)
NET ASSETS
Beginning of period			93,340			98,891

End of period		$	100,632		$	93,340

Undistributed net investment income		$	115		$	26

(1)See "Financial Highlights" on pages 25 - 30.

See Notes to Financial Statements.

Financial Highlights
      IVY BALANCED FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended September 30,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	16.18		$	15.22		$	14.00		$	13.35		$	12.18		$	10.54		$	11.45

Income (loss) from investment operations:
Net investment income			0.11			0.16			0.15			0.14			0.05			0.16			0.23
Net realized and unrealized gain (loss) on investments			1.78			0.98			1.21			0.65			1.16			1.64			(0.89	)

Total from investment operations			1.89			1.14			1.36			0.79			1.21			1.80			(0.66	)

Less distributions from:
Net investment income			(0.09	)		(0.18	)		(0.14	)		(0.14	)		(0.04	)		(0.16	)		(0.25	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.09	)		(0.18	)		(0.14	)		(0.14	)		(0.04	)		(0.16	)		(0.25	)

Net asset value, end of period		$	17.98		$	16.18		$	15.22		$	14.00		$	13.35		$	12.18		$	10.54

Total return ⁽¹⁾			11.71	%		7.53	%		9.71	%		5.90	%		10.06	%		17.17	%⁽²⁾		-5.91	%
Net assets, end of period (in millions)		$65			$59			$57			$54			$52			$38			$37
Ratio of expenses to average net assets including voluntary expense waiver			1.40	%⁽³⁾		1.39	%		1.42	%		1.53	%		1.52	%⁽³⁾⁽⁴⁾		1.29	%		1.22	%
Ratio of net investment income to average net assets including voluntary expense waiver			1.22	%⁽³⁾		1.03	%		1.00	%		1.02	%		0.86	%⁽³⁾⁽⁴⁾		1.41	%		1.84	%
Ratio of expenses to average net assets excluding voluntary expense waiver			1.40	%⁽³⁾⁽⁵⁾		1.39	%⁽⁵⁾		1.42	%⁽⁵⁾		1.53	%⁽⁵⁾		1.57	%⁽³⁾⁽⁴⁾		1.62	%		1.52	%
Ratio of net investment income to average net assets excluding voluntary expense waiver			1.22	%⁽³⁾⁽⁵⁾		1.03	%⁽⁵⁾		1.00	%⁽⁵⁾		1.02	%⁽⁵⁾		0.81	%⁽³⁾⁽⁴⁾		1.08	%		1.54	%
Portfolio turnover rate			4	%		23	%		49	%		37	%		29	%		110	%		129	%

(1)Total return calculated without taking into account the sales load deducted on an initial purchase.

(2)Advantus Capital reimbursed the Fund for losses related to certain investment trades. With reimbursed losses, the total return for Class A, for the year ended September 30, 2003, would have been 17.26%.

(3)Annualized.

(4)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that includes the effect of income and expenses for those Class B and Class C shares from October 1, 2003 up to the time of the merger. Actual expenses that applied to Class A shareholders were lower than shown above.

(5)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY BALANCED FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04

Net asset value, beginning of period		$	16.14		$	15.18		$	13.98		$	13.33		$	12.96

Income from investment operations:
Net investment income			0.03			0.01			0.00			0.01			0.01
Net realized and unrealized gain on investments			1.77			0.98			1.21			0.64			0.39

Total from investment operations			1.80			0.99			1.21			0.65			0.40

Less distributions from:
Net investment income			(0.01	)		(0.03	)		(0.01	)		(0.00	)*		(0.03	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.01	)		(0.03	)		(0.01	)		(0.00	)*		(0.03	)

Net asset value, end of period		$	17.93		$	16.14		$	15.18		$	13.98		$	13.33

Total return			11.16	%		6.49	%		8.62	%		4.90	%		3.05	%
Net assets, end of period (in thousands)		$2,859			$2,506			$1,995			$1,503			$338
Ratio of expenses to average net assets			2.32	%⁽²⁾		2.39	%		2.41	%		2.52	%		2.76	%⁽²⁾
Ratio of net investment income (loss) to average net assets			0.31	%⁽²⁾		0.03	%		0.01	%		0.06	%		-0.42	%⁽²⁾
Portfolio turnover rate			4	%		23	%		49	%		37	%		29	%⁽³⁾

*Not shown due to rounding.

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the six months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY BALANCED FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04

Net asset value, beginning of period		$	16.15		$	15.20		$	13.98		$	13.34		$	12.96

Income from investment operations:
Net investment income			0.04			0.04			0.03			0.03			0.02
Net realized and unrealized gain on investments			1.78			0.97			1.20			0.63			0.39

Total from investment operations			1.82			1.01			1.23			0.66			0.41

Less distributions from:
Net investment income			(0.03	)		(0.06	)		(0.01	)		(0.02	)		(0.03	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.03	)		(0.06	)		(0.01	)		(0.02	)		(0.03	)

Net asset value, end of period		$	17.94		$	16.15		$	15.20		$	13.98		$	13.34

Total return			11.27	%		6.67	%		8.80	%		4.98	%		3.13	%
Net assets, end of period (in thousands)		$3,447			$3,018			$1,996			$898			$301
Ratio of expenses to average net assets			2.12	%⁽²⁾		2.16	%		2.25	%		2.38	%		2.43	%⁽²⁾
Ratio of net investment income (loss) to average net assets			0.51	%⁽²⁾		0.27	%		0.21	%		0.19	%		-0.12	%⁽²⁾
Portfolio turnover rate			4	%		23	%		49	%		37	%		29	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the six months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY BALANCED FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	16.18

Income from investment operations:
Net investment income			0.12	⁽²⁾
Net realized and unrealized gain on investments			1.79	⁽²⁾

Total from investment operations			1.91

Less distributions from:
Net investment income			(0.10	)
Capital gains			(0.00	)

Total distributions			(0.10	)

Net asset value, end of period		$	17.99

Total return ⁽³⁾			11.63	%
Net assets, end of period (in thousands)		$112
Ratio of expenses to average net assets			1.19	%⁽⁴⁾
Ratio of net investment income to average net assets			1.45	%⁽⁴⁾
Portfolio turnover rate			4	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY BALANCED FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	16.18

Income from investment operations:
Net investment income			0.13	⁽²⁾
Net realized and unrealized gain on investments			1.78	⁽²⁾

Total from investment operations			1.91

Less distributions from:
Net investment income			(0.11	)
Capital gains			(0.00	)

Total distributions			(0.11	)

Net asset value, end of period		$	17.98

Total return			11.67	%
Net assets, end of period (in thousands)		$112
Ratio of expenses to average net assets			1.06	%⁽³⁾
Ratio of net investment income to average net assets			1.58	%⁽³⁾
Portfolio turnover rate			4	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY BALANCED FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04

Net asset value, beginning of period		$	16.18		$	15.22		$	14.00		$	13.35		$	12.96

Income from investment operations:
Net investment income			0.11			0.18			0.17			0.17			0.04
Net realized and unrealized gain on investments			1.79			0.98			1.21			0.65			0.40

Total from investment operations			1.90			1.16			1.38			0.82			0.44

Less distributions from:
Net investment income			(0.10	)		(0.20	)		(0.16	)		(0.17	)		(0.05	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.10	)		(0.20	)		(0.16	)		(0.17	)		(0.05	)

Net asset value, end of period		$	17.98		$	16.18		$	15.22		$	14.00		$	13.35

Total return			11.77	%		7.67	%		9.89	%		6.16	%		3.43	%
Net assets, end of period (in millions)		$29			$28			$38			$44			$53
Ratio of expenses to average net assets			1.29	%⁽²⁾		1.26	%		1.26	%		1.30	%		1.36	%⁽²⁾
Ratio of net investment income to average net assets			1.34	%⁽²⁾		1.16	%		1.15	%		1.25	%		0.97	%⁽²⁾
Portfolio turnover rate			4	%		23	%		49	%		37	%		29	% ⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the six months ended March 31, 2004.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY BOND FUND

Portfolio Highlights

On September 30, 2007, Ivy Bond Fund had net assets totaling $86,979,230
invested in a diversified portfolio of:

94.06%		Bonds
5.41%		Cash and Cash Equivalents
0.53%		Preferred Stocks

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:

Corporate Bonds	$	64.35
United States Government Agency Mortgage-Backed Obligations	$	16.41
United States Government Treasury Obligations	$	12.06
Cash and Cash Equivalents	$	5.41
United States Government Agency Obligations	$	1.24
Preferred Stocks	$	0.53

Quality Weightings

On September 30, 2007, the breakdown of bonds (by ratings) held by the Fund was as follows:

AAA	47.53	%
AA	4.99	%
A	8.04	%
BBB	23.07	%
BB	8.95	%
Below B	0.43	%
Non-rated	1.05	%
Cash and Cash Equivalents and Equities	5.94	%

Ratings reflected in the wheel are taken from the following sources in order of preference: Standard & Poor's, Moody's or management's internal ratings, where no other ratings are available.

Certain U.S. government securities in which the Fund may invest, such as Treasury securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. However, other U.S. government securities in which the Fund may invest, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB) are not backed by the full faith and credit of the U.S. government, are not insured or guaranteed by the U.S. government and, instead, may be supported only by the right of the issuer to borrow from the U.S. Treasury or by the credit of the issuer.

The Investments of Ivy Bond Fund
September 30, 2007 (Unaudited)
PREFERRED STOCKS	Shares			Value


Real Estate Investment Trust
PS Business Parks, Inc., 7.0% Cumulative		10,500	$	236,250
Public Storage, Inc., 6.25% Cumulative		10,500		226,485

TOTAL PREFERRED STOCKS - 0.53%			$	462,735

(Cost: $520,050)

CORPORATE DEBT SECURITIES	Principal Amount in Thousands


Aluminum - 0.22%
Steelcase Inc.,
6.5%, 8-15-11	$	185	191,780

Asset-Backed Securities - 3.45%
ABFS Mortgage Loan Trust 2002-4,
7.42%, 12-15-33 (A)		120	114,876
Associates Manufactured Housing Contract Pass-Through Certificates,
7.725%, 6-15-28		129	130,412
C-Bass 2006-CB2 Trust,
5.86%, 12-25-36		530	524,562
C-Bass 2006-MH1 Trust:
6.24%, 10-25-36 (A) (B)		105	106,347
6.25%, 10-25-36 (A) (B)		170	172,065
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35 (A)		370	357,465
Citibank Credit Card Issuance Trust, Class 2005-C1,
5.5%, 3-24-17		200	189,170
CountryPlace Manufactured Housing Contract Trust 2005-1,
5.2%, 12-15-35 (A) (C)		300	277,781
Green Tree Financial Corporation:
6.4%, 10-15-18		65	66,373
7.35%, 5-15-27		36	37,800
Home Equity Loan Trust 2003-HS2,
5.09%, 7-25-33 (A)		36	33,668
National Collegiate Trust 1997-S2 (The),
7.24%, 9-20-14		163	160,269

Origen Manufactured Housing Contract:
Trust 2004-A,
5.7%, 1-15-35	100			97,146
Trust 2004-B,
5.73%, 11-15-35		50		48,029
Trust 2005-A:
4.49%, 5-15-18		170		168,970
5.86%, 6-15-36 (A)		120		117,694
Trust 2005-B,
5.605%, 5-15-22		80		80,408
Vanderbilt Mortgage and Finance, Inc.,
6.86875%, 3-7-28 (A)		147		146,575
WFS Financial 2005-2 Owner Trust,
4.39%, 11-19-12		175		174,019
				3,003,629
Banks - 0.23%
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.25%, 8-25-33 (B)		272		200,911

Broadcasting - 0.55%
Cox Communications, Inc.,
7.125%, 10-1-12		450		476,919

Business Equipment and Services - 0.75%
HSBC Finance Corporation,
5.7%, 6-1-11		400		403,222
International Lease Finance Corporation,
5.625%, 9-20-13		250		247,749
				650,971
Chemicals - Specialty - 0.58%
Valspar Corporation (The),
6.05%, 5-1-17		500		500,685

Collateralized Mortgage Obligations - 7.28%
Banc of America:
Alternative Loan Trust 2005-10:
5.66892%, 11-25-35 (A)	280			255,903
5.66892%, 11-25-35 (A)		135		116,834
Alternative Loan Trust 2005-12:
5.80813%, 1-25-36 (A)		300		279,331
5.80813%, 1-25-36 (A)		218		173,757
Alternative Loan Trust 2006-4,
6.2253%, 5-25-46 (A)		323		305,009
Alternative Loan Trust 2006-8,
6.25114%, 11-25-46 (A)		144		111,280
Mortgage 2007-1 Trust:
6.0%, 3-25-37		245		238,569
6.0%, 3-25-37		169		150,423
Mortgage Trust 2004-7,
5.75%, 8-25-34		90		88,882
Banco Hipotecario Nacional,
7.916%, 7-25-09 (C)		7		74
BlackRock Capital Finance,
7.75%, 9-25-26 (B)		106		106,168
Chase Mortgage Finance Trust, Series 2003-S11,
5.5%, 10-25-33		116		112,246
CitiMortgage Alternative Loan Trust, Series 2007-A7:
6.23737%, 7-25-37		155		98,745
6.25%, 7-25-37		462		445,704
Credit Suisse First Boston Mortgage Securities Corp.,
6.0%, 11-25-18		43		43,229
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage Securitization 2005-A LLC:
5.25%, 4-25-32		191		173,532
5.39485%, 4-25-32 (A)		282		243,589
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC:
5.25%, 11-25-32 (C)		292		278,612
5.25%, 11-25-32 (C)		251		240,658
J.P. Morgan Mortgage Trust:
2005-S2,
5.67065%, 9-25-35 (A)		509		465,887
2006-S3,
6.5%, 8-25-36		395		393,186
Lehman XS Trust, Series 2005-8,
5.69%, 12-25-35	585			579,982
MASTR Asset Securitization Trust 2003-10,
5.5%, 11-25-33		179		174,319
Mellon Residential Funding,
6.75%, 6-26-28		46		46,053
RALI Series 2003-QS10 Trust,
5.75%, 5-25-33		243		234,014
Structured Asset Securities Corporation,
5.63%, 5-25-34 (A)		184		183,550
Wells Fargo Alternative Loan 2007-PA3 Trust,
6.20114%, 7-25-37 (A)		874		792,936
				6,332,472
Computers - Peripherals - 0.34%
Intuit Inc.,
5.75%, 3-15-17		310		295,863

Conduit - 14.97%
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates:
Series 2001-1,
6.125%, 4-15-36 (B)		380		371,870
Series 2002-2,
6.2%, 7-11-43 (B)		275		272,864
Banc of America Commercial Mortgage Trust 2007-1,
5.451%, 1-15-49		500		493,597
Bear Stearns Mortgage Funding Trust 2006-SL6,
5.73125%, 1-25-37 (A)		265		58,028
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-WF2:
6.0%, 7-15-31 (B)		500		482,833
6.0%, 7-15-31 (B)		100		98,833
Bear Stearns Commercial Mortgage Securities Trust:
2002-TOP6,
6.0%, 10-15-36 (B)		320		319,632
2004-PWR4,
5.468%, 6-11-41 (A)	1,500			1,499,266
CD 2006-CD2 Mortgage Trust,
5.80516%, 1-15-46 (A)(C)		710		677,831
CD 2007-CD4 Commercial Mortgage Trust,
5.883%, 12-11-49 (C)		480		373,837
CHL Mortgage Pass-Through Trust 2004-J4,
5.25%, 5-25-34		689		577,606
COMM 2006-CNL2:
5.5699%, 2-5-19 (A)(B)		725		679,457
5.5699%, 2-5-19 (A)(B)		95		91,127
Capital One Multi-asset Execution Trust,
5.75%, 7-15-20		295		297,325
Chase Issuance Trust,
6.0425%, 1-15-14		280		268,246
Commercial Mortgage Asset Trust,
6.0%, 11-17-32		225		216,823
DLJ Commercial Mortgage Corp. 1998-CG1,
7.35697%, 6-10-31 (A)(B)		350		372,596
Discover Card Execution Note Trust,
5.65%, 3-16-20		385		384,311
First Horizon Mortgage Pass-Through Trust 2003-8,
5.12611%, 10-25-33 (A)		96		69,041
GE Capital Commercial Mortgage Corp. 2002-2,
6.039%, 8-11-36 (B)		565		568,850
GE Commercial Mortgage Corporation, Series 2007-C1 Trust,
5.543%, 12-10-49 (A)		700		695,592
GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2001-LI B,
6.733%, 2-14-16 (B)		225		238,913
Hilton Hotel Pool Trust:
6.165%, 10-3-15 (A)(B)		790		780,229
7.653%, 10-3-15 (B)		430		456,676
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38 (C)		464		461,121
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4:
1.09475%, 11-28-35 (A)(C) (Interest Only)	5,993			134,844
5.88%, 11-28-35 (A)(C)		155		148,805
5.88%, 11-28-35 (A)(C)		105		103,097
Nomura Asset Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series1998-D6,
6.0%, 3-15-30 (B)	500			511,768
Wachovia Bank Commercial Mortgage Trust (The),
4.942%, 11-15-34 (B)		285		260,586
Wachovia Bank Commercial Mortgage Trust Commercial Mortgage Pass-Through Certificates:
Series 2006-C26,
6.011%, 6-15-45 (A)		450		464,129
Series 2007- C31,
5.509%, 4-15-47		595		588,985
				13,018,718
Construction Materials - 1.24%
Crane Co.,
6.55%, 11-15-36		540		530,311
USG Corporation,
6.3%, 11-15-16		600		544,532
				1,074,843
Finance Companies - 20.84%
Allied Capital Corporation,
6.625%, 7-15-11		685		700,125
American Capital Strategies, Ltd.,
6.85%, 8-1-12		435		446,559
Asset Securitization Corporation:
1.6136%, 10-13-26 (Interest Only) (A)(B)		951		39,251
7.66418%, 2-14-43 (A)		170		185,089
CSAB Mortgage-Backed Trust 2006-2,
6.08%, 9-25-36 (A)		650		637,329
CSFB Commercial Mortgage Trust 2003-C4,
5.322%, 8-15-36 (A)(B)		500		480,192
CWHEQ Home Equity Loan Trust:
Series 2006-S6,
5.962%, 3-25-34		210		199,786
Series 2007-S2,
5.934%, 5-25-37		580		567,881
Caithness Coso Funding Corp.,
5.489%, 6-15-19 (C)		218		218,824
Capmark Financial Group Inc.:
6.3%, 5-10-17 (B)		200		174,060
5.875%, 5-10-12 (B)		540		491,791
Capital Auto Receivables Asset Trust:
2006-1,
7.16%, 1-15-13 (B)	245			250,179
2007-1,
6.57%, 9-16-13 (B)		525		500,652
2007-2,
8.3%, 2-15-14 (B)		275		293,517
2007-3,
8.0%, 3-17-14 (B)		480		481,950
CarMax Auto Owner Trust 2007-3,
7.58%, 3-17-14		380		382,474
Cendant Mortgage Corporation and Bishop's Gate Residential Mortgage Trust,
6.25%, 6-25-32		124		115,598
Colonial Bank, N.A.,
6.375%, 12-1-15		500		493,936
ERAC USA Finance Company,
5.9%, 11-15-15 (B)		265		261,036
FirstEnergy Generation Corp.,
6.85%, 6-1-34 (B)		295		300,900
Flagstar Home Equity Loan Trust 2007-1,
5.997%, 1-25-35 (A)(C)		415		404,749
Ford Credit Auto Owner Trust:
2006-B,
7.12%, 2-15-13 (B)		140		136,021
2006-C,
6.89%, 5-15-13		200		199,831
2007-A,
7.05%, 12-15-13 (B)		175		167,947
Fund American Companies, Inc.,
5.875%, 5-15-13		560		551,974
GMAC LLC,
6.625%, 5-15-12		320		298,594
GMACM Home Equity Loan Trust:
2006-HE3,
6.088%, 10-25-36 (A)		485		455,291
2007-HE1,
5.952%, 8-25-37 (A)		570		559,767
Goldman Sachs Capital I,
6.345%, 2-15-34		610		568,377
Hometown Commercial Trust 2007-1, Commercial Mortgage-Backed Notes, Series 2007-1,
6.057%, 4-11-17 (C)		473		464,067
J.P. Morgan Alternative Loan Trust 2006-A7,
5.75%, 12-25-36 (A)		645		624,389
J.P. Morgan Chase Commerical Mortgage Securities Trust 2007-LDP11,
6.00725%, 6-15-49 (A)	1,500			1,526,297
J.P. Morgan Mortgage Acquisition Trust:
2006-CW2,
6.337%, 8-25-36 (A)		590		587,127
2006-WF1,
6.41%, 7-25-36 (A)	1,095			1,091,783
JPMorgan Chase Capital XVIII,
6.95%, 8-17-36		425		417,835
Lazard Group LLC,
6.85%, 6-15-17 (C)		750		737,947
Lehman Brothers Holdings Inc.,
6.0%, 7-19-12		300		304,650
Morgan Stanley Capital I, Inc., Commercial Mortgage Pass-Through Certificates, Series 1998-XL2,
6.4352%, 10-3-34 (A)		500		499,731
PNC Funding Corp,
5.625%, 2-1-17		370		361,621
RASC Series 2003-KS10 Trust,
6.41%, 12-25-33		101		84,302
Selkirk Cogen Funding Corporation,
8.65%, 12-26-07		27		27,618
Symetra Financial Corporation,
6.125%, 4-1-16 (B)		400		399,867
TimberStar Trust I,
6.2082%, 10-15-36 (B)		460		432,382
				18,123,296
Hospital Supply and Management - 0.55%
Laboratory Corporation of America Holdings:
5.5%, 2-1-13	215			207,853
5.625%, 12-15-15		285		275,802
				483,655
Household - General Products - 0.74%
Estee Lauder Companies Inc. (The),
6.0%, 5-15-37		670		648,352

Insurance - Life - 0.89%
StanCorp Financial Group, Inc.:
6.875%, 10-1-12		450		482,726
6.9%, 5-29-67		300		289,115
				771,841
Insurance - Property and Casualty - 1.27%
Commerce Group, Inc. (The),
5.95%, 12-9-13		305		302,643
Liberty Mutual Holding Company Inc.,
7.8%, 3-15-37 (C)		360		350,394
Willis North America Inc.,
6.2%, 3-28-17		455		451,462
				1,104,499
Multiple Industry - 0.42%
Tyco Electronics Ltd.:
6.55%, 10-1-17 (B)		190		192,345
7.125%, 10-1-37 (B)		165		171,024
				363,369
Petroleum - Domestic - 1.34%
Plains Exploration & Production Company,
7.75%, 6-15-15		750		735,000
Williams Partners L.P. and Williams Partners Finance Corporation,
7.25%, 2-1-17		420		428,400
				1,163,400
Petroleum - International - 0.60%
El Paso Corporation,
7.0%, 6-15-17		515		522,850

Real Estate Investment Trust - 2.87%
Equity One, Inc.:
6.25%, 1-15-17	285			276,127
6.0%, 9-15-17 (B)		185		175,603
Healthcare Realty Trust Incorporated,
5.125%, 4-1-14		550		527,670
Highwoods Realty Limited Partnership,
5.85%, 3-15-17		405		383,791
Liberty Property Limited Partnership,
6.625%, 10-1-17		295		294,450
Nationwide Health Properties, Inc.,
6.0%, 5-20-15		440		443,681
Realty Income Corporation,
6.75%, 8-15-19		395		395,631
				2,496,953
Security and Commodity Brokers - 2.90%
Bear Stearns Companies Inc. (The),
5.56%, 2-4-08		600		599,501
Janus Capital Group Inc.,
6.25%, 6-15-12		565		572,787
Jefferies Group, Inc.,
6.25%, 1-15-36		400		358,271
Lehman Brothers Holdings Inc.,
6.5%, 7-19-17		595		602,995
Nuveen Investments, Inc.,
5.5%, 9-15-15		465		392,638
				2,526,192
Utilities - Electric - 1.33%
MidAmerican Energy Holdings Company,
6.125%, 4-1-36		475		461,184
Oncor Electric Delivery Company,
7.0%, 9-1-22		450		458,864
Pennsylvania Electric Company,
5.125%, 4-1-14		250		239,268
				1,159,316
Utilities - Telephone - 0.99%
Qwest Corporation,
6.5%, 6-1-17 (B)		425		416,500
Sprint Capital Corporation,
6.9%, 5-1-19		440		441,671
				858,171

TOTAL CORPORATE DEBT SECURITIES - 64.35%			$	55,968,685

(Cost: $57,586,996)

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS	Principal Amount in Thousands			Value


Agency Obligations - 1.24%
Federal National Mortgage Association:
4.25%, 5-15-09	$	500	$	498,492
5.125%, 1-2-14		575		580,583
				1,079,075
Mortgage-Backed Obligations - 16.41%
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
3.5%, 2-15-30		114		108,784
6.5%, 9-1-32		209		215,185
6.0%, 11-1-33		448		450,338
5.5%, 5-1-34		175		171,816
5.5%, 5-1-34		119		117,402
5.5%, 6-1-34	1,452			1,424,724
5.0%, 9-1-34		40		38,365
5.5%, 9-1-34		146		143,029
5.5%, 10-1-34		329		323,454
5.5%, 7-1-35		416		408,193
5.5%, 7-1-35		208		204,021
5.5%, 10-1-35		550		539,217
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.23%, 1-1-08		138		137,541
5.5%, 1-1-17		164		164,415
6.0%, 9-1-17		94		95,340
5.5%, 3-1-18		100		100,462
5.0%, 6-1-18		382		375,560
5.0%, 7-1-18		137		134,610
7.5%, 5-1-31		110		116,256
7.0%, 9-1-31		40		41,866
7.0%, 11-1-31		79		82,878
6.5%, 12-1-31		49		50,394
7.0%, 2-1-32		69		71,642
7.0%, 3-1-32		79		82,615
6.5%, 4-1-32		22		22,757
6.5%, 5-1-32		22		22,792
6.5%, 7-1-32		62		63,634
6.5%, 8-1-32		54		55,308
6.5%, 8-1-32		50		51,548
6.5%, 9-1-32		90		92,646
6.5%, 9-1-32		36		37,465
6.0%, 10-1-32		116		116,619
6.5%, 10-1-32		104		107,205
6.0%, 11-1-32		124		125,005
6.0%, 3-1-33		93		93,524
5.5%, 4-1-33		156		153,736
6.0%, 4-1-33		179		179,934
5.5%, 5-1-33		116		114,125
6.0%, 10-1-33		177		178,329
5.5%, 1-1-34		110		107,670
5.5%, 1-1-34		106		104,082
6.0%, 1-1-34		440		442,489
5.5%, 3-1-34		155		152,096
5.5%, 3-1-34		66		65,126
5.5%, 4-1-34		161		158,282
5.5%, 4-1-34		49		47,680
5.0%, 5-1-34		69		66,308
5.5%, 5-1-34		132		129,720
6.0%, 10-1-34		975		976,219
5.5%, 11-1-34	1,276			1,252,847
6.0%, 11-1-34		795		797,643
5.5%, 2-1-35		185		181,517
5.0%, 7-1-35		198		188,752
5.0%, 7-1-35		99		94,696
5.0%, 7-1-35		84		80,136
5.0%, 7-1-35		47		45,394
4.5%, 9-1-35		404		375,259
5.5%, 10-1-35		924		906,989
Government National Mortgage Association Agency REMIC/CMO (Interest Only),
0.93645%, 6-17-45 (A)	5,006			255,194
Government National Mortgage Association Fixed Rate Pass-Through Certificates,
5.5%, 10-1-35		845		833,118
				14,273,951
Treasury Inflation Protected Obligation - 1.41%
United States Treasury Notes,
1.875%, 7-15-13 (D)	1,100			1,227,758

Treasury Obligations - 10.65%
United States Treasury Bond,
5.375%, 2-15-31	1,950			2,088,175
United States Treasury Notes:
2.625%, 5-15-08	2,500			2,476,952
3.375%, 10-15-09 (E)	1,400			1,383,375
4.625%, 2-29-12	2,615			2,660,151
4.125%, 8-31-12		500		497,812
4.75%, 8-15-17		155		157,059
				9,263,524

TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 29.71%			$	25,844,308

(Cost: $25,945,524)


SHORT-TERM SECURITIES


Electrical Equipment - 1.72%
W.W. Grainger, Inc.,
4.78%, 10-24-07	1,500			1,495,419

Finance Companies - 1.73%
Toyota Motor Credit Corporation,
4.78%, 11-16-07	1,516			1,506,741

Household - General - 1.61%
Fortune Brands Inc.,
5.55%, 10-1-07	1,400			1,400,000

Retail - General Merchandise - 1.72%
Target Corporation,
5.0%, 10-19-07	1,500			1,496,250

TOTAL SHORT-TERM SECURITIES - 6.78%			$	5,898,410

(Cost: $5,898,410)

TOTAL INVESTMENT SECURITIES - 101.37%			$	88,174,138

(Cost: $89,950,980)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.37%)				(1,194,908	)


NET ASSETS - 100.00%			$	86,979,230

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)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007.
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors/Trustees. At September 30, 2007, the total value of theses securities amounted to $11,456,942, or 13.17%% if net assets.
(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors/Trustees. At September 30, 2007, the total value of theses securities amounted to $4,872,641, or 5.6% if net assets.
(D)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.
(E)Security serves as collateral for the following open futures contracts at September 30, 2007. (See Note 7 to financial statements):
	Description	Type	Number of Contracts		Expiration Date		Market Value		Unrealized Appreciation (Depreciation			)

	U.S. 2 Year Treasury Note	Long	64		12-31-07	$	13,251,000			$	69,368
	U.S. 5 Year Treasury Note	Long	59		12-31-07		6,314,844				9,814
	U.S. 10 Year Treasury Note	Short	(129	)	12-31-07	(14,097,281		)			54,214
	U.S. 30 Year Treasury Bond	Short	(9	)	12-31-07		(1,002,094	)			(1,310	)

						$	4,466,469			$	132,086

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY BOND FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $89,951) (Notes 1 and 3)	$	88,174
Receivables:
Dividends and interest		706
Investment securities sold		409
Fund shares sold		204
Variation margin - Futures		12
Prepaid and other assets		33

Total assets		89,538

LIABILITIES
Payable for investment securities purchased		2,209
Payable to Fund shareholders		205
Accrued management fee (Note 2)		37
Accrued service fee (Note 2)		37
Dividends payable		28
Accrued shareholder servicing (Note 2)		18
Accrued accounting services fee (Note 2)		4
Accrued distribution fee (Note 2)		4
Other		17

Total liabilities		2,559

Total net assets	$	86,979

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	89,275
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		––
Accumulated undistributed net realized loss on investment transactions		(651	)
Net unrealized depreciation in value of investments		(1,645	)

Net assets applicable to outstanding units of capital	$	86,979

Net asset value per share (net assets divided by shares outstanding):
Class A	$10.23
Class B	$10.23
Class C	$10.23
Class E	$10.23
Class I	$10.23
Class Y	$10.23
Capital shares outstanding:
Class A		7,829
Class B		210
Class C		406
Class E		41
Class I		15
Class Y		1

See Notes to Financial Statements.

Statement of Operations
      IVY BOND FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                               (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	2,301
Dividends		18

Total income		2,319

Expenses (Note 2):
Investment management fee		206
Service fee:
Class A		87
Class B		2
Class C		6
Class Y		––	*
Shareholder servicing:
Class A		73
Class B		6
Class C		6
Class E		1
Class I		––	*
Class Y		––	*
Registration fees		39
Distribution fee:
Class A		2
Class B		8
Class C		18
Class E		––	*
Accounting services fee		24
Audit fees		13
Custodian fees		7
Legal fees		1
Other		6

Total expenses		505

Net investment income		1,814

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		5
Realized net loss on futures		(69	)

Realized net loss on investments		(64	)

Unrealized depreciation in value of securities during the period	(1,650		)
Unrealized appreciation in value of futures during the period		49

Unrealized depreciation in value of investments during the period	(1,601		)

Net loss on investments	(1,665		)

Net increase in net assets resulting from operations	$	149

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
IVY BOND FUND
(In Thousands) (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE IN NET ASSETS
Operations:
Net investment income		$	1,814		$	2,846
Realized net loss on investments			(64	)		(186	)
Unrealized appreciation (depreciation)			(1,601	)		1,245

Net increase in net assets resulting from operations			149			3,905

Distributions to shareholders from (Note 1F): ⁽¹⁾
Net investment income:
Class A			(1,676	)		(2,687	)
Class B			(35	)		(55	)
Class C			(92	)		(102	)
Class E			(7	)		NA
Class I			(4	)		NA
Class Y			(––	)*		(2	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(––	)

			(1,814	)		(2,846	)

Capital share transactions (Note 5)			18,469			10,386

Total increase			16,804			11,445
NET ASSETS
Beginning of period			70,175			58,730

End of period		$	86,979		$	70,175

Undistributed net investment income		$	––		$	––

*Not shown due to rounding

(1)See "Financial Highlights" on pages 50 - 55.

See Notes to Financial Statements.

Financial Highlights
      IVY BOND FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended September 30,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	10.46		$	10.28		$	10.52		$	10.83		$	10.73		$	10.57		$	10.30

Income (loss) from investment operations:
Net investment income			0.24			0.46			0.42			0.41			0.23			0.45			0.52
Net realized and unrealized gain (loss) on investments			(0.23	)		0.18			(0.24	)		(0.30	)		0.09			0.15			0.27

Total from investment operations			0.01			0.64			0.18			0.11			0.32			0.60			0.79

Less distributions from:
Net investment income			(0.24	)		(0.46	)		(0.42	)		(0.42	)		(0.22	)		(0.44	)		(0.52	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.24	)		(0.46	)		(0.42	)		(0.42	)		(0.22	)		(0.44	)		(0.52	)

Net asset value, end of period		$	10.23		$	10.46		$	10.28		$	10.52		$	10.83		$	10.73		$	10.57

Total return⁽¹⁾			0.15	%		6.40	%		1.74	%		1.04	%		3.03	%		5.84	%		7.90	%
Net assets, end of period (in millions)		$80			$64			$56			$49			$23			$18			$17
Ratio of expenses to average net assets including reimbursement			1.21	%⁽²⁾		1.20	%		1.23	%		1.17	%		1.46	%⁽²⁾⁽³⁾		1.15	%		1.15	%
Ratio of net investment income to average net assets including reimbursement			4.70	%⁽²⁾		4.48	%		4.03	%		3.84	%		4.53	%⁽²⁾⁽³⁾		4.25	%		5.07	%
Ratio of expenses to average net assets excluding reimbursement			1.21	%⁽²⁾⁽⁴⁾		1.20	%⁽⁴⁾		1.23	%⁽⁴⁾		1.43	%		2.36	%⁽²⁾⁽³⁾		2.01	%		1.92	%
Ratio of net investment income to average net assets excluding reimbursement			4.70	%⁽²⁾⁽⁴⁾		4.48	%⁽⁴⁾		4.03	%⁽⁴⁾		3.58	%		3.64	%⁽²⁾⁽³⁾		3.39	%		4.30	%
Portfolio turnover rate			4	%		91	%		126	%		200	%		78	%		119	%		148	%

(1)Total return calculated without taking into account the sales load deducted on an initial purchase.

(2)Annualized.

(3)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that includes the effect of income and expenses for those Class B and Class C shares from October 1, 2003 up to the time of merger. Expenses for Class A shares before and after the merger were limited to 1.15% of average net assets.

(4)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY BOND FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04

Net asset value, beginning of period		$	10.46		$	10.28		$	10.52		$	10.83		$	10.64

Income (loss) from investment operations:
Net investment income			0.18			0.34			0.30			0.28			0.11
Net realized and unrealized gain (loss) on investments			(0.23	)		0.18			(0.24	)		(0.31	)		0.19

Total from investment operations			(0.05	)		0.52			0.06			(0.03	)		0.30

Less distributions from:
Net investment income			(0.18	)		(0.34	)		(0.30	)		(0.28	)		(0.11	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.18	)		(0.34	)		(0.30	)		(0.28	)		(0.11	)

Net asset value, end of period		$	10.23		$	10.46		$	10.28		$	10.52		$	10.83

Total return			-0.43	%		5.22	%		0.57	%		-0.23	%		2.77	%
Net assets, end of period (in thousands)		$2,149			$1,828			$1,451			$744			$287
Ratio of expenses to average net assets			2.36	%⁽²⁾		2.32	%		2.38	%		2.45	%		2.76	%⁽²⁾
Ratio of net investment income to average net assets			3.55	%⁽²⁾		3.37	%		2.90	%		2.63	%		3.04	%⁽²⁾
Portfolio turnover rate			4	%		91	%		126	%		200	%		78	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the six months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY BOND FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04

Net asset value, beginning of period		$	10.46		$	10.28		$	10.52		$	10.83		$	10.64

Income (loss) from investment operations:
Net investment income			0.20			0.37			0.31			0.27			0.11
Net realized and unrealized gain (loss) on investments			(0.23	)		0.18			(0.24	)		(0.31	)		0.19

Total from investment operations			(0.03	)		0.55			0.07			(0.04	)		0.30

Less distributions from:
Net investment income			(0.20	)		(0.37	)		(0.31	)		(0.27	)		(0.11	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.20	)		(0.37	)		(0.31	)		(0.27	)		(0.11	)

Net asset value, end of period		$	10.23		$	10.46		$	10.28		$	10.52		$	10.83

Total return			-0.27	%		5.48	%		0.66	%		-0.40	%		2.77	%
Net assets, end of period (in thousands)		$4,159			$4,096			$1,737			$547			$115
Ratio of expenses to average net assets			2.02	%⁽²⁾		2.06	%		2.28	%		2.59	%		2.61	%⁽²⁾
Ratio of net investment income to average net assets			3.89	%⁽²⁾		3.62	%		3.01	%		2.47	%		3.09	%⁽²⁾
Portfolio turnover rate			4	%		91	%		126	%		200	%		78	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the six months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY BOND FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07 ⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.46

Income (loss) from investment operations:
Net investment income			0.23	⁽²⁾
Net realized and unrealized loss on investments			(0.23	)⁽²⁾

Total from investment operations			0.00

Less distributions from:
Net investment income			(0.23	)
Capital gains			(0.00	)

Total distributions			(0.23	)

Net asset value, end of period		$	10.23

Total return ⁽³⁾			0.03	%
Net assets, end of period (in thousands)		$416
Ratio of expenses to average net assets			1.33	%⁽⁴⁾
Ratio of net investment income to average net assets			4.59	%⁽⁴⁾
Portfolio turnover rate			4	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY BOND FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07 ⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.46

Income (loss) from investment operations:
Net investment income			0.26	⁽²⁾
Net realized and unrealized loss on investments			(0.23	)⁽²⁾

Total from investment operations			0.03

Less distributions from:
Net investment income			(0.26	)
Capital gains			(0.00	)

Total distributions			(0.26	)

Net asset value, end of period		$	10.23

Total return			0.32	%
Net assets, end of period (in thousands)		$155
Ratio of expenses to average net assets			0.95	%⁽³⁾
Ratio of net investment income to average net assets			4.96	%⁽³⁾
Portfolio turnover rate			4	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY BOND FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04

Net asset value, beginning of period		$	10.46		$	10.28		$	10.52		$	10.83		$	10.64

Income (loss) from investment operations:
Net investment income			0.24	⁽²⁾		0.46			0.41			0.39			0.13
Net realized and unrealized gain (loss) on investments			(0.23	)⁽²⁾		0.18			(0.24	)		(0.31	)		0.19

Total from investment operations			0.01			0.64			0.17			0.08			0.32

Less distributions from:
Net investment income			(0.24	)		(0.46	)		(0.41	)		(0.39	)		(0.13	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.24	)		(0.46	)		(0.41	)		(0.39	)		(0.13	)

Net asset value, end of period		$	10.23		$	10.46		$	10.28		$	10.52		$	10.83

Total return			0.08	%		6.43	%		1.62	%		0.75	%		3.03	%
Net assets, end of period (in thousands)		$8			$42			$20			$34			$25
Ratio of expenses to average net assets			1.38	%⁽³⁾		1.09	%		1.34	%		1.46	%		1.54	%⁽³⁾
Ratio of net investment income to average net assets			4.54	%⁽³⁾		4.60	%		3.91	%		3.65	%		3.99	%⁽³⁾
Portfolio turnover rate			4	%		91	%		126	%		200	%		78	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended March 31, 2004.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY CUNDILL GLOBAL VALUE FUND

Portfolio Highlights

On September 30, 2007, Ivy Cundill Global Value Fund had net assets totaling
$869,366,906 invested in a diversified portfolio of:

85.20%		Foreign Common Stocks
8.69%		Domestic Common Stocks
6.11%		Cash and Cash Equivalents and Unrealized Loss on Open Forward Currency Contracts

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

Japan	$	34.73
South Korea	$	19.38
United States	$	8.69
Italy	$	8.41
Germany	$	6.14
Cash and Cash Equivalents and Unrealized Loss on Open Forward Currency Contracts	$	6.11
Singapore	$	5.26
Bermuda	$	4.86
Turkey	$	2.95
Canada	$	2.81
Cayman Islands	$	0.66

Sector Weightings

Consumer Nondurables Stocks	$	18.06
Consumer Services Stocks	$	17.14
Financial Services Stocks	$	16.85
Technology Stocks	$	10.59
Utilities Stocks	$	8.27
Cash and Cash Equivalents and Unrealized Loss on Open Forward Currency Contracts	$	6.11
Retail Stocks	$	5.00
Multi-Industry Stocks	$	4.86
Business Equipment and Services Stocks	$	4.82
Health Care Stocks	$	4.62
Capital Goods Stocks	$	3.68

The Investments of Ivy Cundill Global Value Fund
September 30, 2007 (Unaudited)
COMMON STOCKS			Shares		Value


Bermuda - 4.86%
First Pacific Company Limited (A)		56,604,000		$	42,231,738

Canada - 2.81%
Fairfax Financial Holdings Limited (A)			100,100		24,406,829

Cayman Islands - 0.66%
Semiconductor Manufacturing International Corporation (A)*		48,574,000			5,748,513

Germany - 6.14%
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A)			278,707		53,413,311

Italy - 8.41%
Italmobiliare S.p.A., Non-Convertible Savings Shares (A)			388,008		32,023,704
Mediaset S.p.A. (A)			3,978,030		41,068,513
					73,092,217
Japan - 34.73%
AIFUL Corporation (A)			2,299,050		36,027,424
Asatsu-DK Inc. (A)*			1,302,000		41,939,668
Coca-Cola West Holdings Company, Limited (A)*			1,879,200		44,172,202
Kirin Brewery Company, Limited (A)*			2,495,000		33,016,149
Mabuchi Motor Co., Ltd. (A)*			673,000		43,884,299
Seven & i Holdings Co., Ltd. (A)			1,690,700		43,494,698
TV Asahi Corporation (A)			16,614		26,758,281
Takefuji Corporation (A)			1,643,520		32,622,867
					301,915,588
Singapore - 5.26%
Singapore Press Holdings Limited (A)		15,738,000			45,767,863

South Korea - 19.38%
Korea Electric Power Corporation (A)			1,124,104		52,692,375
Korea Tobacco & Ginseng Corporation (A)			692,838		54,127,969
SK Telecom Co., Ltd. (A)*			42,571		9,768,258
SK Telecom Co., Ltd., ADR*			318,866		9,470,320
Samsung Electronics Co., Ltd. (A)*			91,213		42,457,100
					168,516,022
Thailand - 2.95%
Thai Beverage Public Company Limited (A)*	143,580,000				25,613,396

United States - 8.69%
DIRECTV Group, Inc. (The)*			1,458,742		35,418,256
Pfizer Inc.*			1,642,700		40,131,161
					75,549,417

TOTAL COMMON STOCKS - 93.89%				$	816,254,894

(Cost: $758,777,011)

UNREALIZED LOSS ON OPEN FORWARD CURRENCY CONTRACTS - (2.05%)		Face Amount in Thousands


Euro, 1-18-08 (B)	EUR46,105				(3,504,446	)
Euro, 3-14-08 (B)			33,340		(1,252,287	)
Japanese Yen, 1-18-08 (B)	JPY17,097,976				(8,938,920	)
Japanese Yen, 3-14-08 (B)	14,179,514				(331,376	)
Singapore Dollar, 1-18-08 (B)	SGD52,044				(832,595	)
Singapore Dollar, 3-14-08 (B)			40,826		(535,181	)
South Korean Won, 1-18-08 (B)	KRW77,245,913				(1,394,122	)
South Korean Won, 3-14-08 (B)	59,905,775				(1,052,300	)
				$	(17,841,227	)

SHORT-TERM SECURITIES - 6.05%	Principal Amount in Thousands


Repurchase Agreements
J.P. Morgan Securities Inc., 3.85% Repurchase Agreement dated 9-28-07 to be repurchased at $52,594,869 on 10-1-07 (C)	$	52,578	$	52,578,000
Cost: $52,578,000)

TOTAL INVESTMENT SECURITIES - 97.89%			$	850,991,667

(Cost: $811,355,011)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.11%				18,375,239


NET ASSETS - 100.00%			$	869,366,906

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

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

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

(C)Collateralized by $39,639,000 United States Treasury Bond, 8.5% due 2-15-20; market value and accrued interest aggregate $53,698,597.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY CUNDILL GLOBAL VALUE FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (Notes 1 and 3):
Securities (cost - $758,777)	$	798,414
Repurchase agreement (cost - $52,578)		52,578

		850,992
Cash denominated in foreign currencies (cost - $25,786)		26,031
Receivables:
Dividends and interest		2,850
Fund shares sold		1,845
Prepaid and other assets		54

Total assets		881,772

LIABILITIES
Payable to Fund shareholders		5,306
Due to custodian		3,741
Payable for investment securities purchased		1,695
Accrued management fee (Note 2)		687
Accrued service fee (Note 2)		351
Accrued shareholder servicing (Note 2)		291
Accrued distribution fee (Note 2)		154
Accrued accounting services fee (Note 2)		12
Accrued administrative fee (Note 2)		7
Other		161

Total liabilities		12,405

Total net assets	$	869,367

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	747,803
Accumulated undistributed income:
Accumulated undistributed net investment income		5,111
Accumulated undistributed net realized gain on investment transactions		76,563
Net unrealized appreciation in value of investments		39,890

Net assets applicable to outstanding units of capital	$	869,367

Net asset value per share (net assets divided by shares outstanding):
Class A	$15.44
Class B	$15.04
Class C	$15.01
Class E	$15.41
Class I	$15.61
Class Y	$15.52
Advisor Class	$15.50
Class II	$15.36
Capital shares outstanding:
Class A		39,909
Class B		3,354
Class C		12,385
Class E		20
Class I		127
Class Y		760
Advisor Class		181
Class II		2

See Notes to Financial Statements.

Statement of Operations
      IVY CUNDILL GLOBAL VALUE FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                               (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $1,154)	$	10,394
Interest and amortization		2,868

Total income		13,262

Expenses (Note 2):
Investment management fee		4,559
Shareholder servicing:
Class A		919
Class B		109
Class C		180
Class E		1
Class I		2
Class Y		11
Advisor Class		––	*
Class II		––	*
Service fee:
Class A		817
Class B		72
Class C		279
Class Y		17
Distribution fee:
Class A		40
Class B		215
Class C		837
Class E		––	*
Custodian fees		132
Accounting services fee		82
Administrative fee		49
Audit fees		12
Legal fees		10
Other		256

Total		8,599
Less expenses in excess of voluntary limit (Note 2)		(15	)

Total expenses		8,584

Net investment income		4,678

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		40,455
Realized net gain on forward currency contracts		2,481
Realized net gain on foreign currency transactions		2,026

Realized net gain on investments		44,962

Unrealized depreciation in value of securities during the period		(86,224	)
Unrealized depreciation in value of forward currency contracts during the period		(14,275	)

Unrealized depreciation in value of investments during the period	(100,499		)

Net loss on investments		(55,537	)

Net decrease in net assets resulting from operations	$	(50,859	)

See Notes to Financial Statements.

*Not shown due to rounding.

Statement of Changes in Net Assets
IVY CUNDILL GLOBAL VALUE FUND
(In Thousands) (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	4,678		$	5,753
Realized net gain on investments			44,962			79,392
Unrealized appreciation (depreciation)		(100,499		)		10,677

Net increase (decrease) in net assets resulting from operations			(50,859	)		95,822

Distributions to shareholders from (Note 1F): ⁽¹⁾
Net investment income:
Class A			(––	)		(4,498	)
Class B			(––	)		(––	)
Class C			(––	)		(219	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(146	)
Advisor Class			(––	)		(37	)
Class II			(––	)		(––	)*
Realized gains on investment transactions:
Class A			(––	)		(30,521	)
Class B			(––	)		(2,704	)
Class C			(––	)		(10,901	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(689	)
Advisor Class			(––	)		(142	)
Class II			(––	)		(1	)

			(––	)		(49,858	)

Capital share transactions (Note 5)			(77,731	)		38,788

Total increase (decrease)		(128,590		)		84,752
NET ASSETS
Beginning of period			997,957			913,205

End of period		$869,367			$997,957

Undistributed net investment income (loss)		$5,111			$(1,593		)

*Not shown due to rounding.

(1)See "Financial Highlights" on pages 66 - 73.

See Notes to Financial Statements.

Financial Highlights
      IVY CUNDILL GLOBAL VALUE FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	16.28		$	15.52		$	13.79		$	12.57		$	11.41		$	8.39		$	9.64

Income (loss) from investment operations:
Net investment income (loss)			0.10			0.13			0.17			0.04			0.01			0.01		(0.00		)⁽¹⁾
Net realized and unrealized gain (loss) on investments			(0.94	)		1.49			2.21			1.25			1.15			3.05		(1.17		)⁽¹⁾

Total from investment operations			(0.84	)		1.62			2.38			1.29			1.16			3.06		(1.17		)

Less distributions from:
Net investment income			(0.00	)		(0.11	)		(0.16	)		(0.07	)		(0.00	)	(0.04		)	(0.00		)
Capital gains			(0.00	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)	(0.00		)	(0.08		)

Total distributions			(0.00	)		(0.86	)		(0.65	)		(0.07	)		(0.00	)	(0.04		)	(0.08		)

Net asset value, end of period		$	15.44		$	16.28		$	15.52		$	13.79		$	12.57		$	11.41		$	8.39

Total return⁽²⁾			-5.16	%		10.71	%		17.49	%		10.29	%		10.17	%		36.43	%	-12.17		%
Net assets, end of period (in millions)		$616			$688			$625			$321			$59			$30			$1
Ratio of expenses to average net assets including reimbursement			1.55	%⁽³⁾		1.55	%		1.62	%		1.74	%		1.70	%⁽³⁾		2.05	%		2.28	%
Ratio of net investment income (loss) to average net assets including reimbursement			1.14	%⁽³⁾		0.81	%		1.09	%		0.08	%		-0.09	%⁽³⁾		0.18	%		0.02	%
Ratio of expenses to average net assets excluding reimbursement			1.55	%⁽³⁾⁽⁴⁾		1.55	%⁽⁴⁾		1.62	%⁽⁴⁾		1.74	%⁽⁴⁾		1.84	%⁽³⁾		2.21	%		4.97	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			1.14	%⁽³⁾⁽⁴⁾		0.81	%⁽⁴⁾		1.09	%⁽⁴⁾		0.08	%⁽⁴⁾		-0.23	%⁽³⁾		0.02	%	-2.67		%
Portfolio turnover rate			28	%		42	%		4	%		5	%		1	%		24	%		122	%

(1)Based on average shares outstanding.

(2)Total return calculated without taking into account the sales load deducted on an initial purchase.

(3)Annualized.

(4)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY CUNDILL GLOBAL VALUE FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	15.93		$	15.23		$	13.54		$	12.38		$	11.26		$	8.32		$	9.61

Income (loss) from investment operations:
Net investment income (loss)			0.02			(0.01	)		0.06			(0.01	)		(0.02	)		(0.06	)	(0.05		)⁽¹⁾
Net realized and unrealized gain (loss) on investments			(0.91	)		1.46			2.14			1.17			1.14			3.00		(1.16		)⁽¹⁾

Total from investment operations			(0.89	)		1.45			2.20			1.16			1.12			2.94		(1.21		)

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.02	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)
Capital gains			(0.00	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)		(0.00	)	(0.08		)

Total distributions			(0.00	)		(0.75	)		(0.51	)		(0.00	)		(0.00	)		(0.00	)	(0.08		)

Net asset value, end of period		$	15.04		$	15.93		$	15.23		$	13.54		$	12.38		$	11.26		$	8.32

Total return			-5.65	%		9.82	%		16.43	%		9.37	%		9.95	%		35.34	%	-12.62		%
Net assets, end of period (in millions)		$50			$59			$57			$37			$12			$7			$2
Ratio of expenses to average net assets including reimbursement			2.43	%⁽²⁾		2.44	%		2.51	%		2.62	%		2.52	%⁽²⁾		3.20	%		2.84	%
Ratio of net investment income (loss) to average net assets including reimbursement			0.27	%⁽²⁾		-0.07	%		0.21	%		-0.86	%		-1.31	%⁽²⁾		-1.13	%	-0.54		%
Ratio of expenses to average net assets excluding reimbursement			2.43	%⁽²⁾⁽³⁾		2.44	%⁽³⁾		2.51	%⁽³⁾		2.62	%⁽³⁾		2.67	%⁽²⁾		3.36	%		5.53	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			0.27	%⁽²⁾⁽³⁾		-0.07	%⁽³⁾		0.21	%⁽³⁾		-0.86	%⁽³⁾		-1.46	%⁽²⁾		-1.29	%	-3.23		%
Portfolio turnover rate			28	%		42	%		4	%		5	%		1	%		24	%		122	%

(1)Based on average shares outstanding.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY CUNDILL GLOBAL VALUE FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	15.88		$	15.16		$	13.48		$	12.30		$	11.19		$	8.26		$	9.57

Income (loss) from investment operations:
Net investment income (loss)			0.04			0.03			0.08			(0.02	)		(0.01	)		(0.03	)	(0.07		)⁽¹⁾
Net realized and unrealized gain (loss) on investments			(0.91	)		1.46			2.14			1.20			1.12			2.96		(1.16		)⁽¹⁾

Total from investment operations			(0.87	)		1.49			2.22			1.18			1.11			2.93		(1.23		)

Less distributions from:
Net investment income			(0.00	)		(0.02	)		(0.05	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)
Capital gains			(0.00	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)		(0.00	)	(0.08		)

Total distributions			(0.00	)		(0.77	)		(0.54	)		(0.00	)		(0.00	)		(0.00	)	(0.08		)

Net asset value, end of period		$	15.01		$	15.88		$	15.16		$	13.48		$	12.30		$	11.19		$	8.26

Total return			-5.48	%		10.03	%		16.70	%		9.59	%		9.92	%		35.47	%	-12.88		%
Net assets, end of period (in thousands)	$185,854			$233,049			$211,242			$96,375			$23,840			$11,235				$446
Ratio of expenses to average net assets including reimbursement			2.20	%⁽²⁾		2.21	%		2.28	%		2.42	%		2.35	%⁽²⁾		2.93	%		3.10	%
Ratio of net investment income (loss) to average net assets including reimbursement			0.49	%⁽²⁾		0.15	%		0.43	%		-0.62	%		-1.09	%⁽²⁾		-0.83	%	-0.80		%
Ratio of expenses to average net assets excluding reimbursement			2.20	%⁽²⁾⁽³⁾		2.21	%⁽³⁾		2.28	%⁽³⁾		2.42	%⁽³⁾		2.50	%⁽²⁾		3.10	%		5.79	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			0.49	%⁽²⁾⁽³⁾		0.15	%⁽³⁾		0.43	%⁽³⁾		-0.62	%⁽³⁾		-1.23	%⁽²⁾		-1.00	%	-3.49		%
Portfolio turnover rate			28	%		42%			4	%		5%			1%			24	%		122	%

(1)Based on average shares outstanding.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY CUNDILL GLOBAL VALUE FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	16.28

Income (loss) from investment operations:
Net investment income			0.02	⁽²⁾
Net realized and unrealized loss on investments			(0.89	)⁽²⁾

Total from investment operations			(0.87	)

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	15.41

Total return ⁽³⁾			-5.05	%
Net assets, end of period (in thousands)		$310
Ratio of expenses to average net assets			2.05	%⁽⁴⁾
Ratio of net investment income to average net assets			0.27	%⁽⁴⁾
Portfolio turnover rate			28	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY CUNDILL GLOBAL VALUE FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	16.34

Income (loss) from investment operations:
Net investment income			0.13	⁽²⁾
Net realized and unrealized loss on investments			(0.86	)⁽²⁾

Total from investment operations			(0.73	)

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	15.61

Total return		-4.18		%
Net assets, end of period (in millions)		$2
Ratio of expenses to average net assets			1.20	%⁽³⁾
Ratio of net investment income to average net assets			1.47	%⁽³⁾
Portfolio turnover rate			28	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY CUNDILL GLOBAL VALUE FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the period from 7-24-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04				12-31-03

Net asset value, beginning of period		$	16.33		$	15.56		$	13.82		$	12.58		$	11.40			$	9.84

Income (loss) from investment operations:
Net investment income (loss)			0.11			0.19			0.19			0.07			(0.01	)			0.02
Net realized and unrealized gain (loss) on investments			(0.92	)		1.49			2.26			1.29			1.19				1.58

Total from investment operations			(0.81	)		1.68			2.45			1.36			1.18				1.60

Less distributions from:
Net investment income			(0.00	)		(0.16	)		(0.22	)		(0.12	)		(0.00	)			(0.04	)
Capital gains			(0.00	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)			(0.00	)

Total distributions			(0.00	)		(0.91	)		(0.71	)		(0.12	)		(0.00	)			(0.04	)

Net asset value, end of period		$	15.52		$	16.33		$	15.56		$	13.82		$	12.58			$	11.40

Total return			-5.02	%		11.14	%		17.99	%		10.90	%		10.35	%			16.28	%
Net assets, end of period (in millions)		$12			$15			$17			$10			$2				$1
Ratio of expenses to average net assets including reimbursement			1.20	%⁽²⁾		1.20	%		1.19	%		1.20	%		1.20	%⁽²⁾			1.76	%⁽²⁾
Ratio of net investment income (loss) to average net assets including reimbursement			1.47	%⁽²⁾		1.18	%		1.46	%		0.52	%		-0.32	%⁽²⁾			0.55	%⁽²⁾
Ratio of expenses to average net assets excluding reimbursement			1.43	%⁽²⁾		1.42	%		1.46	%		1.56	%		1.80	%⁽²⁾			2.09	%⁽²⁾
Ratio of net investment income (loss) to average net assets excluding reimbursement			1.24	%⁽²⁾		0.96	%		1.19	%		0.16	%		-0.92	%⁽²⁾			0.22	%⁽²⁾
Portfolio turnover rate			28	%		42	%		4	%		5	%		1	%			24	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the 12 months ended December 31, 2003.

See Notes to Financial Statements.

Financial Highlights
      IVY CUNDILL GLOBAL VALUE FUND
      Advisor Class Shares ⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	16.30		$	15.54		$	13.77		$	12.54		$	11.37		$	8.34		$	9.55

Income (loss) from investment operations:
Net investment income (loss)			0.13			0.21			0.22			0.04			(0.01	)		(0.01	)		0.04	⁽²⁾
Net realized and unrealized gain (loss) on investments			(0.93	)		1.49			2.23			1.32			1.18			3.10		(1.17		)⁽²⁾

Total from investment operations			(0.80	)		1.70			2.45			1.36			1.17			3.09		(1.13		)

Less distributions from:
Net investment income			(0.00	)		(0.19	)		(0.19	)		(0.13	)		(0.00	)		(0.06	)	(0.00		)
Capital gains			(0.00	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)		(0.00	)	(0.08		)

Total distributions			(0.00	)		(0.94	)		(0.68	)		(0.13	)		(0.00	)		(0.06	)	(0.08		)

Net asset value, end of period		$	15.50		$	16.30		$	15.54		$	13.77		$	12.54		$	11.37		$	8.34

Total return		-4.97		%		11.33	%		18.09	%		10.86	%		10.29	%		37.11	%	-11.86		%
Net assets, end of period (in millions)		$3			$3			$3			$3			$3			$3			$2
Ratio of expenses to average net assets including reimbursement			1.04	%⁽³⁾		1.05	%		1.12	%		1.23	%		1.26	%⁽³⁾		2.12	%		1.83	%
Ratio of net investment income (loss) to average net assets including reimbursement			1.65	%⁽³⁾		1.31	%		1.57	%		0.41	%		-0.17	%⁽³⁾		-0.07	%		0.47	%
Ratio of expenses to average net assets excluding reimbursement			1.04	%⁽³⁾⁽⁴⁾		1.05	%⁽⁴⁾		1.12	%⁽⁴⁾		1.23	%⁽⁴⁾		1.41	%⁽³⁾		2.28	%		4.52	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			1.65	%⁽³⁾⁽⁴⁾		1.31	%⁽⁴⁾		1.57	%⁽⁴⁾		0.41	%⁽⁴⁾		-0.32	%⁽³⁾		-0.23	%	-2.22		%
Portfolio turnover rate			28	%		42	%		4	%		5	%		1	%		24	%		122	%

(1)See Note 5 to financial statements.

(2)Based on average shares outstanding.

(3)Annualized.

(4)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY CUNDILL GLOBAL VALUE FUND
      Class II Shares ⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the fiscal period ended			For the fiscal year ended			For the period from 11-5-02⁽²⁾ to
	9-30-07				2007			2006			2005			3-31-04			12-31-03			12-31-02

Net asset value, beginning of period		$	16.16		$	15.41		$	13.70		$	12.49		$	11.33		$	8.31		$	8.85

Income (loss) from investment operations:
Net investment income (loss)			0.17			0.24			0.25	⁽³⁾		0.02			(0.01	)		0.00			0.26
Net realized and unrealized gain (loss) on investments			(0.97	)		1.44			2.16	⁽³⁾		1.30			1.17			3.08		(0.72		)

Total from investment operations			(0.80	)		1.68			2.41			1.32			1.16			3.08		(0.46		)

Less distributions from:
Net investment income			(0.00	)		(0.18	)		(0.21	)		(0.11	)		(0.00	)		(0.06	)	(0.00		)
Capital gains			(0.00	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)		(0.00	)	(0.08		)

Total distributions			(0.00	)		(0.93	)		(0.70	)		(0.11	)		(0.00	)		(0.06	)	(0.08		)

Net asset value, end of period		$	15.36		$	16.16		$	15.41		$	13.70		$	12.49		$	11.33		$	8.31

Total return		-4.95		%		11.24	%		17.88	%		10.62	%		10.24	%		37.12	%	-5.23		%
Net assets, end of period (in thousands)		$25			$26			$24			$70			$63			$57			$42
Ratio of expenses to average net assets including reimbursement			1.11	%⁽⁴⁾		1.08	%		1.28	%		1.49	%		1.39	%⁽⁴⁾		2.03	%	11.51		%⁽⁴⁾
Ratio of net investment income (loss) to average net assets including reimbursement			1.58	%⁽⁴⁾		1.28	%		1.20	%		0.16	%		-0.29	%⁽⁴⁾		0.03	%		2.96	%⁽⁴⁾
Ratio of expenses to average net assets excluding reimbursement			1.11	%⁽⁴⁾⁽⁵⁾		1.08	%⁽⁵⁾		1.28	%⁽⁵⁾		1.49	%⁽⁵⁾		1.53	%⁽⁴⁾		2.20	%	28.44		%⁽⁴⁾
Ratio of net investment income (loss) to average net assets excluding reimbursement			1.58	%⁽⁴⁾⁽⁵⁾		1.28	%⁽⁵⁾		1.20	%⁽⁵⁾		0.16	%⁽⁵⁾		-0.44	%⁽⁴⁾		-0.13	%	-13.97		%⁽⁴⁾
Portfolio turnover rate			28	%		42	%		4	%		5	%		1	%		24	%		122	%⁽⁶⁾

(1)See Note 5 to financial statements.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

(4)Annualized.

(5)There was no waiver of expenses during the period.

(6)For the 12 months ended December 31, 2002.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY DIVIDEND INCOME FUND

Portfolio Highlights

On September 30, 2007, Ivy Dividend Income Fund had net assets totaling
$186,368,424 invested in a diversified portfolio of:

85.42%		Domestic Common Stocks
7.34%		Foreign Common Stocks
7.24%		Cash and Cash Equivalents

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:

Financial Services Stocks	$	17.56
Energy Stocks	$	16.78
Capital Goods Stocks	$	9.38
Technology Stocks	$	9.31
Consumer Nondurables Stocks	$	8.42
Cash and Cash Equivalents	$	7.24
Raw Materials Stocks	$	7.03
Utilities Stocks	$	6.22
Multi-Industry Stocks	$	6.10
Miscellaneous Stocks	$	5.53
Health Care Stocks	$	3.41
Shelter Stocks	$	3.02

The Investments of Ivy Dividend Income Fund
September 30, 2007 (Unaudited)
COMMON STOCKS	Shares			Value


Aircraft - 6.59%
Boeing Company (The)		53,650	$	5,632,713
Goodrich Corporation		48,850		3,333,035
Raytheon Company		52,050		3,321,831
				12,287,579
Banks - 1.61%
Bank of America Corporation		59,450		2,988,551

Beverages - 3.86%
Coca-Cola Company (The)		39,400		2,264,318
Diageo plc, ADR		30,300		2,658,219
PepsiCo, Inc.		31,100		2,278,386
				7,200,923
Capital Equipment - 4.25%
Caterpillar Inc.		19,850		1,556,835
Deere & Company		42,900		6,367,218
				7,924,053
Chemicals - Petroleum and Inorganic - 4.27%
E.I. du Pont de Nemours and Company		48,400		2,398,704
Monsanto Company		41,900		3,592,506
UAP Holding Corp.		62,450		1,959,369
				7,950,579
Chemicals - Specialty - 1.68%
Air Products and Chemicals, Inc.		32,050		3,133,208

Communications Equipment - 0.71%
Nokia Corporation, Series A, ADR		34,650		1,314,275

Computers - Peripherals - 1.09%
Microsoft Corporation		68,750		2,025,719

Electrical Equipment - 0.99%
Emerson Electric Co.		34,450		1,833,429

Electronic Components - 0.92%
Microchip Technology Incorporated		47,100		1,709,730

Finance Companies - 1.12%
Blackstone Group L.P. (The)*		11,400		285,912
Fannie Mae		29,750		1,809,097
				2,095,009
Health Care - Drugs - 2.48%
Abbott Laboratories		43,850		2,351,237
Merck & Co., Inc.		43,850		2,266,607
				4,617,844
Hospital Supply and Management - 0.93%
Medtronic, Inc.		30,650		1,728,967

Hotels and Gaming - 2.25%
Harrah's Entertainment, Inc.		19,550		1,699,481
Starwood Hotels & Resorts Worldwide, Inc.		41,100		2,496,825
				4,196,306
Household - General Products - 3.64%
Colgate-Palmolive Company		47,250		3,369,870
Procter & Gamble Company (The)		48,450		3,407,973
				6,777,843
Insurance - Life - 0.92%
Aflac Incorporated		30,200		1,722,608

Insurance - Property and Casualty - 4.61%
ACE Limited		22,250		1,347,682
Ambac Financial Group, Inc.		31,500		1,981,665
Everest Re Group, Ltd.		15,250		1,681,160
MBIA Inc.		33,750		2,060,438
Travelers Companies, Inc. (The)		30,150		1,517,751
				8,588,696
Metal Fabrication - 1.13%
Loews Corporation, Carolina Group		25,700		2,113,311

Mining - 0.59%
Rio Tinto plc, ADR		3,200		1,098,880

Multiple Industry - 6.10%
Altria Group, Inc.		66,000		4,588,980
General Electric Company	109,100			4,516,740
NuStar GP Holdings, LLC		72,950		2,268,016
				11,373,736
Non-Residential Construction - 3.01%
Fluor Corporation		39,000		5,615,220

Petroleum - International - 6.06%
Anadarko Petroleum Corporation		44,550		2,394,562
Apache Corporation		27,900		2,512,674
Exxon Mobil Corporation		59,600		5,516,576
Marathon Oil Corporation		15,200		866,704
				11,290,516
Petroleum - Services - 10.72%
Baker Hughes Incorporated		41,500		3,750,355
Grant Prideco, Inc.*		33,000		1,799,160
National Oilwell Varco, Inc.*		22,650		3,272,925
Schlumberger Limited		64,200		6,741,000
Transocean Inc.*		17,600		1,989,680
Weatherford International Ltd.*		36,200		2,431,916
				19,985,036
Railroad - 2.05%
Burlington Northern Santa Fe Corporation		17,650		1,432,650
Union Pacific Corporation		21,150		2,391,219
				3,823,869
Real Estate Investment Trust - 3.02%
Douglas Emmett, Inc.		78,500		1,941,305
ProLogis		22,650		1,502,828
Simon Property Group, Inc.		21,900		2,190,000
				5,634,133
Restaurants - 1.23%
McDonald's Corporation		42,000		2,287,740

Security and Commodity Brokers - 9.30%
AllianceBernstein Holding L.P.		60,450		5,323,831
CME Group Inc.		9,450		5,550,457
J.P. Morgan Chase & Co.		39,452		1,807,691
NYMEX Holdings, Inc.		21,800		2,837,924
UBS AG		34,000		1,810,500
				17,330,403
Steel - 0.49%
Nucor Corporation		15,450		918,812

Tobacco - 0.92%
Reynolds American Inc.		27,000		1,716,930

Utilities - Electric - 2.69%
Dominion Resources, Inc.		22,100		1,863,030
NRG Energy, Inc.*		74,650		3,156,949
				5,019,979
Utilities - Gas and Pipeline - 0.72%
Enbridge Inc.		36,350		1,332,954

Utilities - Telephone - 2.81%
AT&T Inc.		54,073		2,287,829
Iowa Telecommunications Services, Inc.		84,150		1,670,378
Verizon Communications Inc.		28,950		1,281,906
				5,240,113

TOTAL COMMON STOCKS - 92.76%			$	172,876,951

(Cost: $129,801,414)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Commercial Paper
Electrical Equipment - 0.80%
W.W. Grainger, Inc.,
4.78%, 10-24-07	$	1,500	1,495,419

Finance Companies - 1.07%
Prudential Funding LLC,
5.15%, 10-11-07		2,000	1,997,139

Food and Related - 2.68%
Hershey Company (The),
5.3%, 10-15-07		3,000	2,993,817
Kellogg Co.,
5.75%, 10-12-07		2,000	1,996,486
			4,990,303
Forest and Paper Products - 0.06%
Sonoco Products Co.,
5.6%, 10-1-07		109	109,000

Leisure Time Industry - 1.07%
Walt Disney Company (The),
5.2%, 10-11-07		2,000	1,997,111

Retail - General Merchandise - 2.14%
Target Corporation,
5.0%, 10-19-07	$	4,000		3,990,000

Total Commercial Paper - 7.82%				14,578,972


Municipal Obligation - Taxable - 0.54%
California
County of Sacramento, Taxable Pension Funding Bonds, Series 1995B (Bayerische Landesbank Girozentrale, New York Branch),
5.25%, 10-3-07 (A)		1,000		1,000,000

TOTAL SHORT-TERM SECURITIES - 8.36%			$	15,578,972

(Cost: $15,578,972)

TOTAL INVESTMENT SECURITIES - 101.12%			$	188,455,923

(Cost: $145,380,386)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.12%)				(2,087,499	)


NET ASSETS - 100.00%			$	186,368,424

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY DIVIDEND INCOME FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $145,380) (Notes 1 and 3)	$	188,456
Receivables:
Fund shares sold		587
Dividends and interest		342
Prepaid and other assets		43

Total assets		189,428

LIABILITIES
Payable to Fund shareholders		2,664
Payable for investment securities purchased		126
Accrued management fee (Note 2)		105
Accrued service fee (Note 2)		58
Accrued shareholder servicing (Note 2)		46
Accrued distribution fee (Note 2)		21
Due to custodian		9
Accrued accounting services fee (Note 2)		6
Other		25

Total liabilities		3,060

Total net assets	$	186,368

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	141,205
Accumulated undistributed income:
Accumulated undistributed net investment income		102
Accumulated undistributed net realized gain on investment transactions		1,985
Net unrealized appreciation in value of investments		43,076

Net assets applicable to outstanding units of capital	$	186,368

Net asset value per share (net assets divided by shares outstanding):
Class A	$17.68
Class B	$17.59
Class C	$17.61
Class E	$17.67
Class I	$17.69
Class Y	$17.69
Capital shares outstanding:
Class A		7,994
Class B		684
Class C		1,347
Class E		41
Class I		6
Class Y		477

See Notes to Financial Statements.

Statement of Operations
      IVY DIVIDEND INCOME FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                               (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $12)	$	1,574
Interest and amortization		450

Total income		2,024

Expenses (Note 2):
Investment management fee		579
Shareholder servicing:
Class A		169
Class B		27
Class C		32
Class E		2
Class I		––	*
Class Y		4
Service fee:
Class A		153
Class B		14
Class C		27
Class Y		7
Distribution fee:
Class A		5
Class B		42
Class C		81
Class E		––	*
Accounting services fee		36
Audit fees		11
Custodian fees		3
Legal fees		2
Other		72

Total expenses		1,266

Net investment income		758

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		580
Unrealized appreciation in value of investments during the period		18,519

Net gain on investments		19,099

Net increase in net assets resulting from operations	$	19,857

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY DIVIDEND INCOME FUND
      (In Thousands)                                                                                                                (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE IN NET ASSETS
Operations:
Net investment income		$	758		$	1,040
Realized net gain on investments			580			2,989
Unrealized appreciation			18,519			7,777

Net increase in net assets resulting from operations			19,857			11,806

Distributions to shareholders from (Note 1F): ⁽¹⁾
Net investment income:
Class A			(621	)		(963	)
Class B			(3	)		(24	)
Class C			(20	)		(61	)
Class E			(1	)		NA
Class I			(1	)		NA
Class Y			(33	)		(17	)
Realized gains on investment transactions:
Class A			(––	)		(1,058	)
Class B			(––	)		(106	)
Class C			(––	)		(209	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(16	)

			(679	)		(2,454	)

Capital share transactions (Note 5)			28,301			46,283

Total increase			47,479			55,635
NET ASSETS
Beginning of period			138,889			83,254

End of period		$	186,368		$	138,889

Undistributed net investment income		$	102		$	23

(1)See "Financial Highlights" on pages 83 - 88.

See Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND INCOME FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the period from 6-30-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04				12-31-03

Net asset value, beginning of period		$	15.70		$	14.41		$	12.13		$	11.07		$	11.03		$	10.00

Income from investment operations:
Net investment income			0.09	⁽²⁾		0.17	⁽²⁾		0.12	⁽²⁾		0.09			0.01			0.04
Net realized and unrealized gain on investments			1.97	⁽²⁾		1.49	⁽²⁾		2.30	⁽²⁾		1.10			0.04			1.03

Total from investment operations			2.06			1.66			2.42			1.19			0.05			1.07

Less distributions from:
Net investment income			(0.08	)		(0.18	)		(0.11	)		(0.09	)		(0.01	)		(0.04	)
Capital gains			(0.00	)		(0.19	)		(0.03	)		(0.04	)		(0.00	)		(0.00	)

Total distributions			(0.08	)		(0.37	)		(0.14	)		(0.13	)		(0.01	)		(0.04	)

Net asset value, end of period		$	17.68		$	15.70		$	14.41		$	12.13		$	11.07		$	11.03

Total return ⁽³⁾			13.14	%		11.57	%		19.99	%		10.78	%		0.41	%		10.70	%
Net assets, end of period (in millions)		$141			$107			$61			$32			$17			$16
Ratio of expenses to average net assets including voluntary expense waiver			1.37	%⁽⁴⁾		1.38	%		1.45	%		1.59	%		2.00	%⁽⁴⁾		1.11	%⁽⁴⁾
Ratio of net investment income to average net assets including voluntary expense waiver			1.08	%⁽⁴⁾		1.16	%		0.92	%		0.94	%		0.20	%⁽⁴⁾		1.34	%⁽⁴⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			1.37	%⁽⁴⁾⁽⁵⁾		1.38	%⁽⁵⁾		1.45	%⁽⁵⁾		1.59	%⁽⁵⁾		2.40	%⁽⁴⁾		1.81	%⁽⁴⁾
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver			1.08	%⁽⁴⁾⁽⁵⁾		1.16	%⁽⁵⁾		0.92	%⁽⁵⁾		0.94	%⁽⁵⁾		-0.20	%⁽⁴⁾		0.64	%⁽⁴⁾
Portfolio turnover rate			9	%		24	%		15	%		32	%		12	%		16	%

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND INCOME FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the period from 6-30-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04				12-31-03


Net asset value, beginning of period		$	15.63		$	14.34		$	12.09		$	11.05		$	11.03		$	10.00

Income (loss) from investment operations:
Net investment income (loss)			0.01			0.05			0.01			0.02			(0.02	)		0.01
Net realized and unrealized gain on investments			1.96			1.47			2.28			1.06			0.04			1.03

Total from investment operations			1.97			1.52			2.29			1.08			0.02			1.04

Less distributions from:
Net investment income			(0.01	)		(0.04	)		(0.01	)		(0.00	)		(0.00	)		(0.01	)
Capital gains			(0.00	)		(0.19	)		(0.03	)		(0.04	)		(0.00	)		(0.00	)

Total distributions			(0.01	)		(0.23	)		(0.04	)		(0.04	)		(0.00	)		(0.01	)

Net asset value, end of period		$	17.59		$	15.63		$	14.34		$	12.09		$	11.05		$	11.03

Total return			12.57	%		10.63	%		18.94	%		9.76	%		0.18	%		10.36	%
Net assets, end of period (in millions)		$12			$10			$7			$6			$2			$2
Ratio of expenses to average net assets including voluntary expense waiver			2.34	%⁽²⁾		2.30	%		2.32	%		2.44	%		2.99	%⁽²⁾		2.03	%⁽²⁾
Ratio of net investment income (loss) to average net assets including voluntary expense waiver			0.10	%⁽²⁾		0.29	%		0.03	%		0.11	%		-0.81	%⁽²⁾		0.36	%⁽²⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			2.34	%⁽²⁾⁽³⁾		2.30	%⁽³⁾		2.32	%⁽³⁾		2.44	%⁽³⁾		3.39	%⁽²⁾		2.73	%⁽²⁾
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver			0.10	%⁽²⁾⁽³⁾		0.29	%⁽³⁾		0.03	%⁽³⁾		0.11	%⁽³⁾		-1.21	%⁽²⁾		-0.34	%⁽²⁾
Portfolio turnover rate			9	%		24	%		15	%		32	%		12	%		16	%

(1)Commencement of operations of the class.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND INCOME FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the period from 6-30-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04				12-31-03

Net asset value, beginning of period		$	15.63		$	14.34		$	12.09		$	11.05		$	11.03		$	10.00

Income (loss) from investment operations:
Net investment income (loss)			0.02			0.07			0.01			0.01			(0.02	)		0.01
Net realized and unrealized gain on investments			1.97			1.47			2.28			1.07			0.04			1.03

Total from investment operations			1.99			1.54			2.29			1.08			0.02			1.04

Less distributions from:
Net investment income			(0.01	)		(0.06	)		(0.01	)		(0.00	)		(0.00	)		(0.01	)
Capital gains			(0.00	)		(0.19	)		(0.03	)		(0.04	)		(0.00	)		(0.00	)

Total distributions			(0.01	)		(0.25	)		(0.04	)		(0.04	)		(0.00	)		(0.01	)

Net asset value, end of period		$	17.61		$	15.63		$	14.34		$	12.09		$	11.05		$	11.03

Total return			12.77	%		10.74	%		18.95	%		9.76	%		0.18	%		10.38	%
Net assets, end of period (in millions)		$24			$19			$14			$10			$6			$5
Ratio of expenses to average net assets including voluntary expense waiver			2.15	%⁽²⁾		2.17	%		2.27	%		2.42	%		2.88	%⁽²⁾		1.98	%⁽²⁾
Ratio of net investment income (loss) to average net assets including voluntary expense waiver			0.30	%⁽²⁾		0.42	%		0.08	%		0.10	%		-0.68	%⁽²⁾		0.45	%⁽²⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			2.15	%⁽²⁾⁽³⁾		2.17	%⁽³⁾		2.27	%⁽³⁾		2.42	%⁽³⁾		3.28	%⁽²⁾		2.68	%⁽²⁾
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver			0.30	%⁽²⁾⁽³⁾		0.42	%⁽³⁾		0.08	%⁽³⁾		0.10	%⁽³⁾		-1.08	%⁽²⁾		-0.25	%⁽²⁾
Portfolio turnover rate			9	%		24	%		15	%		32	%		12	%		16	%

(1)Commencement of operations of the class.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND INCOME FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	15.70

Income from investment operations:
Net investment income			0.01	⁽²⁾
Net realized and unrealized gain on investments			2.01	⁽²⁾

Total from investment operations			2.02

Less distributions from:
Net investment income			(0.05	)
Capital gains			(0.00	)

Total distributions			(0.05	)

Net asset value, end of period		$	17.67

Total return ⁽³⁾			12.53	%
Net assets, end of period (in millions)		$1
Ratio of expenses to average net assets			2.17	%⁽⁴⁾
Ratio of net investment income to average net assets			0.39	%⁽⁴⁾
Portfolio turnover rate			9	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND INCOME FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	15.70

Income from investment operations:
Net investment income		0.08		⁽²⁾
Net realized and unrealized gain on investments		2.01		⁽²⁾

Total from investment operations			2.09

Less distributions from:
Net investment income			(0.10	)
Capital gains			(0.00	)

Total distributions			(0.10	)

Net asset value, end of period		$	17.69

Total return			12.94	%
Net assets, end of period (in thousands)		$113
Ratio of expenses to average net assets			1.01	%⁽³⁾
Ratio of net investment income to average net assets			1.45	%⁽³⁾
Portfolio turnover rate			9	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND INCOME FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the period from 6-30-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04				12-31-03

Net asset value, beginning of period		$	15.70		$	14.41		$	12.13		$	11.07		$	11.03		$	10.00

Income from investment operations:
Net investment income			0.09	⁽²⁾		0.12	⁽²⁾		0.15	⁽²⁾		0.11			0.01			0.05
Net realized and unrealized gain on investments			1.99	⁽²⁾		1.55	⁽²⁾		2.29	⁽²⁾		1.10			0.04			1.03

Total from investment operations			2.08			1.67			2.44			1.21			0.05			1.08

Less distributions from:
Net investment income			(0.09	)		(0.19	)		(0.13	)		(0.11	)		(0.01	)		(0.05	)
Capital gains			(0.00	)		(0.19	)		(0.03	)		(0.04	)		(0.00	)		(0.00	)

Total distributions			(0.09	)		(0.38	)		(0.16	)		(0.15	)		(0.01	)		(0.05	)

Net asset value, end of period		$	17.69		$	15.70		$	14.41		$	12.13		$	11.07		$	11.03

Total return			13.25	%		11.65	%		20.14	%		10.94	%		0.42	%		10.78	%
Net assets, end of period (in millions)		$8			$3			$1			$1			$1			$1
Ratio of expenses to average net assets including voluntary expense waiver			1.25	%⁽³⁾		1.29	%		1.34	%		1.44	%		1.91	%⁽³⁾		1.25	%⁽³⁾
Ratio of net investment income to average net assets including voluntary expense waiver			1.26	%⁽³⁾		0.92	%		1.03	%		1.09	%		0.28	%⁽³⁾		1.08	%⁽³⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			1.25	%⁽³⁾⁽⁴⁾		1.29	%⁽⁴⁾		1.34	%⁽⁴⁾		1.44	%⁽⁴⁾		2.31	%⁽³⁾		1.95	%⁽³⁾
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver			1.26	%⁽³⁾⁽⁴⁾		0.92	%⁽⁴⁾		1.03	%⁽⁴⁾		1.09	%⁽⁴⁾		-0.12	%⁽³⁾		0.38	%⁽³⁾
Portfolio turnover rate			9	%		24	%		15	%		32	%		12	%		16	%

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)There was no waiver of expenses during the period.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY EUROPEAN OPPORTUNITIES FUND

Portfolio Highlights

On September 30, 2007, Ivy European Opportunities Fund had net assets totaling $626,190,655 invested in a diversified portfolio of:

96.49%		Foreign Common Stocks and Rights
3.51%		Cash and Cash Equivalents

Country Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007, your Fund was invested by country and by industry, respectively, as follows:

United Kingdom	$	21.06
Germany	$	17.03
France	$	11.16
Greece	$	9.36
Other Europe ⁽¹⁾	$	6.01
Spain	$	5.68
Norway	$	4.60
Italy	$	4.36
Netherlands	$	3.94
Other Bahamas/Caribbean ⁽²⁾	$	3.94
Cash and Cash Equivalents	$	3.51
Ireland	$	3.47
Other ⁽³⁾	$	3.36
Bermuda	$	2.52

(1)Includes $0.94 Belgium, $1.73 Luxembourg, $1.83 Sweden and $1.51 Switzerland.

(2)Includes $2.16 British Virgin Islands and $1.78 Cayman Islands.

(3)Includes $2.15 Cyprus and $1.21 Turkey.

Sector Weightings

Financial Services Stocks	$	29.44
Capital Goods Stocks	$	12.23
Utilities Stocks	$	11.16
Energy Stocks	$	10.33
Consumer Durables Stocks	$	7.04
Consumer Nondurables Stocks	$	6.54
Miscellaneous Stocks	$	6.02
Consumer Services Stocks	$	4.09
Multi-Industry Stocks	$	3.84
Cash and Cash Equivalents	$	3.51
Transportation Stocks	$	3.33
Health Care Stocks	$	2.47

The Investments of Ivy European Opportunities Fund
September 30, 2007 (Unaudited)
COMMON STOCKS AND RIGHTS		Shares			Value


Belgium - 0.94%
Fortis (A)			168,594	$	4,964,374
Fortis N.V., Rights (A)*			168,594		896,713
					5,861,087
Bermuda - 2.52%
SeaDrill Limited (A)*			702,558		15,800,632

British Virgin Islands - 2.16%
Inmarsat plc (A)	1,455,414				13,541,401

Cayman Islands - 1.78%
Subsea 7 Inc. (A)*			402,399		11,158,572

Cyprus - 2.15%
Prosafe ASA (A)			754,126		13,456,419

France - 11.16%
Altamir Amboise (A)			484,911		6,879,985
Altamir Amboise, Rights (A)*			620,694		265,522
France Telecom (A)			401,768		13,457,386
Peugeot S.A. (A)			260,452		21,496,046
Sanofi-Aventis (A)			182,866		15,483,727
TOTAL S.A. (A)			151,219		12,295,209
					69,877,875
Germany - 17.03%
Commerzbank Aktiengesellschaft (A)			423,748		17,202,734
Continental Aktiengesellschaft (A)			112,197		15,574,695
DaimlerChrysler AG, Registered Shares (A)			69,487		7,009,241
Deutsche Post AG (A)			322,362		9,358,882
Hypo Real Estate Holding AG (A)			281,994		16,084,302
Pfleiderer Ag, Registered Shares (A)			425,982		9,937,494
RWE Aktiengesellschaft (A)			143,210		17,978,594
SAP Aktiengesellschaft (A)			230,624		13,492,995
					106,638,937
Greece - 9.36%
Alpha Bank (A)			473,719		16,509,137
Coca-Cola Hellenic Bottling Company S.A. (A)			264,680		15,285,460
National Bank of Greece S.A. (A)			317,983		20,268,135
Titan Cement Company S.A. (A)			126,954		6,560,500
					58,623,232
Ireland - 3.47%
CRH public limited company (A)			410,980		16,197,988
IAWS Group, plc (A)			250,242		5,548,722
					21,746,710
Italy - 4.36%
AZIMUT HOLDING S.P.A. (A)			567,000		8,731,908
Eni S.p.A. (A)			323,515		11,989,555
UniCredito Italiano S.p.A. (A)			769,096		6,580,125
					27,301,588
Luxembourg - 1.73%
SES GLOBAL S.A., Fiduciary Deposit Receipts (A)			458,062		10,796,910

Netherlands - 3.94%
Aalberts Industries N.V. (A)			226,264		5,394,536
Akzo Nobel N.V. (A)			155,156		12,787,886
Univar N.V. (A)			85,009		6,447,588
					24,630,010
Norway - 4.60%
BW Offshore Limited (A)*	1,049,878				4,810,014
Eitzen Chemical ASA (A)(B)*			847,312		3,536,197
Statoil ASA (A)			600,698		20,473,593
					28,819,804
Spain - 5.68%
Banco Bilbao Vizcaya Argentaria, S.A. (A)			381,445		8,942,029
Banco Santander Central Hispano, S.A. (A)			474,536		9,222,897
Enagas, S.A. (A)			297,235		7,705,418
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. (A)			98,848		7,999,008
Promotora de Informaciones, S.A. (A)			87,015		1,718,487
					35,587,839
Sweden - 1.83%
Investor AB, B Shares (A)			446,930		11,478,238

Switzerland - 1.51%
UBS AG (A)			175,672		9,445,624

Turkey - 1.21%
Turkiye Halk Bankasi A.S. (A)(B)*			933,013		7,575,416

United Kingdom - 21.06%
Admiral Group Plc (A)			91,833		1,691,008
Ashtead Group plc (A)	4,197,645				8,931,890
Aurora Russia Limited (A)*	1,110,000				1,930,395
British Sky Broadcasting Group plc (A)			920,220		13,085,214
Evolution Group Plc (The) (A)	2,389,703				5,243,793
IP Group plc (A)*	1,619,705				4,498,628
Imperial Tobacco Group PLC (A)			346,887		15,905,020
Investec plc (A)			356,195		3,731,317
Lloyds TSB Group plc (A)	1,022,122				11,345,061
MAXjet Airways, Inc. (A)*			150,000		365,210
MAXjet Airways, Inc. (A)(B)*	1,129,023				2,748,869
Man Group plc (A)			932,526		10,560,462
NDS Group plc, ADR*			100,000		4,994,000
Premier Brands Foods plc (A)			918,000		4,188,436
Regal Petroleum plc (A)*			667,000		2,517,831
Regal Petroleum plc (A)(B)*	1,050,000				3,963,602
Royal Bank of Scotland Group plc (The) (A)	1,765,579				18,964,911
Vodafone Group Plc (A)	4,765,992				17,210,852
					131,876,499

TOTAL COMMON STOCKS AND RIGHTS - 96.49%				$	604,216,793

(Cost: $489,543,364)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Finance Companies - 0.95%
Prudential Funding LLC,
5.23%, 10-5-07	$	6,000		5,996,513

Food and Related - 0.32%
Archer Daniels Midland Company,
5.1%, 11-6-07		2,000		1,989,800

Mining - 0.56%
BHP Billiton Finance (USA) Limited (BHP Billiton Limited),
5%, 10-1-07		3,493		3,493,000

TOTAL SHORT-TERM SECURITIES - 1.83%			$	11,479,313

(Cost: $11,479,313)

TOTAL INVESTMENT SECURITIES - 98.32%			$	615,696,106

(Cost: $501,022,677)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.68%				10,494,549


NET ASSETS - 100.00%			$	626,190,655

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. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $17,824,084, or 2.85% of net assets.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY EUROPEAN OPPORTUNITIES FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (cost - $501,023) (Notes 1 and 3)	$	615,696
Receivables:
Investment securities sold		10,447
Fund shares sold		2,233
Dividends and interest		1,450
Prepaid and other assets		58

Total assets		629,884

LIABILITIES
Payable for investment securities purchased		1,790
Payable to Fund shareholders		668
Accrued management fee (Note 2)		444
Accrued service fee (Note 2)		204
Due to custodian		195
Accrued shareholder servicing (Note 2)		181
Accrued distribution fee (Note 2)		77
Accrued accounting services fee (Note 2)		9
Accrued administrative fee (Note 2)		5
Other		120

Total liabilities		3,693

Total net assets	$	626,191

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	454,785
Accumulated undistributed income:
Accumulated undistributed net investment income		4,080
Accumulated undistributed net realized gain on investment transactions		52,587
Net unrealized appreciation in value of investments		114,739

Net assets applicable to outstanding units of capital	$	626,191

Net asset value per share (net assets divided by shares outstanding):
Class A	$43.89
Class B	$42.18
Class C	$42.35
Class E	$43.95
Class I	$44.09
Class Y	$43.98
Advisor Class	$44.40
Capital shares outstanding:
Class A		10,457
Class B		1,359
Class C		1,686
Class E		2
Class I		684
Class Y		136
Advisor Class		51

Statement of Operations
      IVY EUROPEAN OPPORTUNITIES FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                                (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $1,006)	$	9,660
Interest and amortization		520

Total income		10,180

Expenses (Note 2):
Investment management fee		2,648
Shareholder servicing:
Class A		638
Class B		85
Class C		76
Class E		––	*
Class I		12
Class Y		4
Advisor Class		1
Service fee:
Class A		527
Class B		73
Class C		91
Class Y		7
Distribution fee:
Class A		21
Class B		210
Class C		263
Class E		––	*
Custodian fees		116
Accounting services fee		54
Administrative fee		30
Audit fees		23
Legal fees		6
Other		149

Total expenses		5,034

Net investment income		5,146

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		42,241
Realized net loss on foreign currency transactions		(185	)

Realized net gain on investments		42,056
Unrealized depreciation in value of investments during the period		(4,108	)

Net gain on investments		37,948

Net increase in net assets resulting from operations	$	43,094

*Not shown due to rounding.

Statement of Changes in Net Assets
      IVY EUROPEAN OPPORTUNITIES FUND
      (In Thousands)                                                                                                                (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE IN NET ASSETS
Operations:
Net investment income		$	5,146		$	3,038
Realized net gain on investments			42,056			42,154
Unrealized appreciation (depreciation)			(4,108	)		38,366

Net increase in net assets resulting from operations			43,094			83,558

Distributions to shareholders from (Note 1F): ⁽¹⁾
Net investment income:
Class A			(––	)		(3,582	)
Class B			(––	)		(171	)
Class C			(––	)		(263	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(69	)
Advisor Class			(––	)		(33	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(––	)
Advisor Class			(––	)		(––	)

			(––	)		(4,118	)

Capital share transactions (Note 5)			68,368			99,354

Total increase			111,462			178,794
NET ASSETS
Beginning of period			514,729			335,935

End of period		$	626,191		$	514,729

Undistributed net investment income (loss)		$	4,080		$	(881	)

(1)See "Financial Highlights" on pages 98 - 104.

Financial Highlights
      IVY EUROPEAN OPPORTUNITIES FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	40.58		$	33.58		$	28.31		$	22.30		$	19.89		$	13.20		$	13.65

Income (loss) from investment operations:
Net investment income (loss)			0.40			0.31			0.10		(0.03		)	(0.03		)		0.02			0.01	⁽¹⁾
Net realized and unrealized gain (loss) on investments			2.91			7.11			5.37			6.05			2.44			6.71		(0.46		)⁽²⁾

Total from investment operations			3.31			7.42			5.47			6.02			2.41			6.73		(0.45		)

Less distributions from:
Net investment income		(0.00		)	(0.42		)	(0.20		)	(0.01		)	(0.00		)	(0.04		)	(0.00		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)

Total distributions		(0.00		)	(0.42		)	(0.20		)	(0.01		)	(0.00		)	(0.04		)	(0.00		)

Net asset value, end of period		$	43.89		$	40.58		$	33.58		$	28.31		$	22.30		$	19.89		$	13.20

Total return ⁽³⁾			8.18	%		22.17	%		19.41	%		27.02	%		12.12	%		51.02	%	-3.30		%⁽²⁾
Net assets, end of period (in millions)		$459			$389			$235			$170			$79			$38			$20
Ratio of expenses to average net assets			1.57	%⁽⁴⁾		1.64	%		1.72	%		1.79	%		1.72	%⁽⁴⁾		2.26	%		2.15	%
Ratio of net investment income (loss) to average net assets			1.91	%⁽⁴⁾		0.91	%		0.35	%		-0.07	%		-0.61	%⁽⁴⁾		0.18	%		0.06	%
Portfolio turnover rate			26	%		42	%		62	%		63	%		31	%		123	%		69	%

(1)Based on average shares outstanding.

(2)Includes redemption fees added to capital.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY EUROPEAN OPPORTUNITIES FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	39.14		$	32.40		$	27.32		$	21.66		$	19.36		$	12.93		$	13.54

Income (loss) from investment operations:
Net investment income (loss)			0.25			0.09		(0.11		)	(0.17		)	(0.09		)	(0.07		)	(0.10		)⁽¹⁾
Net realized and unrealized gain (loss) on investments			2.79			6.78			5.19			5.83			2.39			6.50		(0.51		)⁽¹⁾

Total from investment operations			3.04			6.87			5.08			5.66			2.30			6.43		(0.61		)

Less distributions from:
Net investment income		(0.00		)	(0.13		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)

Total distributions		(0.00		)	(0.13		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)

Net asset value, end of period		$	42.18		$	39.14		$	32.40		$	27.32		$	21.66		$	19.36		$	12.93

Total return			7.77	%		21.24	%		18.59	%		26.13	%		11.88	%		49.73	%	-4.51		%
Net assets, end of period (in millions)		$57			$52			$44			$40			$32			$29			$25
Ratio of expenses to average net assets			2.34	%⁽²⁾		2.40	%		2.45	%		2.53	%		2.58	%⁽²⁾		3.00	%		2.92	%
Ratio of net investment income (loss) to average net assets			1.16	%⁽²⁾		0.27	%		-0.30	%		-0.73	%		-1.57	%⁽²⁾		-0.47	%		-0.70	%
Portfolio turnover rate			26	%		42	%		62	%		63	%		31	%		123	%		69	%

(1)Based on average shares outstanding.

(2)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY EUROPEAN OPPORTUNITIES FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	39.28		$	32.52		$	27.42		$	21.74		$	19.43		$	12.98		$	13.59

Income (loss) from investment operations:
Net investment income (loss)			0.27			0.12		(0.09		)	(0.14		)	(0.08		)	(0.07		)	(0.10		)⁽¹⁾
Net realized and unrealized gain (loss) on investments			2.80			6.81			5.19			5.82			2.39			6.52		(0.51		)⁽¹⁾

Total from investment operations			3.07			6.93			5.10			5.68			2.31			6.45		(0.61		)

Less distributions from:
Net investment income		(0.00		)	(0.17		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)

Total distributions		(0.00		)	(0.17		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)

Net asset value, end of period		$	42.35		$	39.28		$	32.52		$	27.42		$	21.74		$	19.43		$	12.98

Total return			7.82	%		21.33	%		18.60	%		26.13	%		11.89	%		49.69	%	-4.49		%
Net assets, end of period (in millions)		$72			$65			$51			$45			$27			$23			$19
Ratio of expenses to average net assets			2.24	%⁽²⁾		2.32	%		2.42	%		2.51	%		2.56	%⁽²⁾		2.98	%		2.92	%
Ratio of net investment income (loss) to average net assets			1.27	%⁽²⁾		0.32	%		-0.29	%		-0.79	%		-1.54	%⁽²⁾		-0.43	%		-0.70	%
Portfolio turnover rate			26	%		42	%		62	%		63	%		31	%		123	%		69	%

(1)Based on average shares outstanding.

(2)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY EUROPEAN OPPORTUNITIES FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	40.58

Income from investment operations:
Net investment income			0.50	⁽²⁾
Net realized and unrealized gain on investments			2.87	⁽²⁾

Total from investment operations			3.37

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	43.95

Total return ⁽³⁾			8.01	%
Net assets, end of period (in thousands)		$108
Ratio of expenses to average net assets			1.30	%⁽⁴⁾
Ratio of net investment income to average net assets			2.26	%⁽⁴⁾
Portfolio turnover rate			26	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY EUROPEAN OPPORTUNITIES FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	40.61

Income from investment operations:
Net investment income			0.29	⁽²⁾
Net realized and unrealized gain on investments			3.19	⁽²⁾

Total from investment operations			3.48

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	44.09

Total return			8.25	%
Net assets, end of period (in millions)		$30
Ratio of expenses to average net assets			1.17	%⁽³⁾
Ratio of net investment income to average net assets			1.32	%⁽³⁾
Portfolio turnover rate			26	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY EUROPEAN OPPORTUNITIES FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the fiscal period ended				For the period from 7-24-03⁽¹⁾to
	9-30-07				2007			2006			2005			3-31-04				12-31-03

Net asset value, beginning of period		$	40.61		$	33.60		$	28.33		$	22.30			$	19.89		$	14.88

Income (loss) from investment operations:
Net investment income (loss)			0.38			0.44			0.18			0.09			(0.02		)	(0.04		)
Net realized and unrealized gain on investments			2.99			7.05			5.34			6.00				2.43			5.12

Total from investment operations			3.37			7.49			5.52			6.09				2.41			5.08

Less distributions from:
Net investment income		(0.00		)	(0.48		)	(0.25		)	(0.06		)		(0.00		)	(0.07		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)	(0.00		)

Total distributions		(0.00		)	(0.48		)	(0.25		)	(0.06		)		(0.00		)	(0.07		)

Net asset value, end of period		$	43.98		$	40.61		$	33.60		$	28.33			$	22.30		$	19.89

Total return			8.30	%		22.38	%		19.60	%		27.32	%			12.12	%		34.14	%
Net assets, end of period (in millions)		$6			$7			$4			$4				$4			$3
Ratio of expenses to average net assets			1.41	%⁽²⁾		1.44	%		1.55	%		1.61	%			1.75	%⁽²⁾		1.51	%⁽²⁾
Ratio of net investment income (loss) to average net assets			2.08	%⁽²⁾		1.14	%		0.60	%		0.53	%			-0.71	%⁽²⁾		-0.58	%⁽²⁾
Portfolio turnover rate			26	%		42	%		62	%		63	%			31	%		123	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the 12 months ended December 31, 2003.

See Notes to Financial Statements.

Financial Highlights
      IVY EUROPEAN OPPORTUNITIES FUND
      Advisor Class Shares ⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	40.96		$	33.88		$	28.55		$	22.48		$	20.03		$	13.34		$	13.80

Income (loss) from investment operations:
Net investment income (loss)			0.66			0.94			0.35	⁽²⁾		0.21			(0.01	)		0.24			0.06	⁽²⁾
Net realized and unrealized gain (loss) on investments			2.78			6.73			5.32	⁽²⁾		5.99			2.46			6.58		(0.52		)

Total from investment operations			3.44			7.67			5.67			6.20			2.45			6.82		(0.46		)

Less distributions from:
Net investment income		(0.00		)	(0.59		)	(0.34		)	(0.13		)	(0.00		)	(0.13		)	(0.00		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)

Total distributions		(0.00		)	(0.59		)	(0.34		)	(0.13		)	(0.00		)	(0.13		)	(0.00		)

Net asset value, end of period		$	44.40		$	40.96		$	33.88		$	28.55		$	22.48		$	20.03		$	13.34

Total return			8.40	%		22.76	%		20.00	%		27.64	%		12.23	%		51.12	%	-3.33		%
Net assets, end of period (in millions)		$2			$2			$2			$4			$4			$4			$6
Ratio of expenses to average net assets			1.15	%⁽³⁾		1.19	%		1.25	%		1.36	%		1.41	%⁽³⁾		1.96	%		1.81	%
Ratio of net investment income (loss) to average net assets			2.42	%⁽³⁾		1.60	%		1.13	%		0.51	%		-0.41	%⁽³⁾		1.02	%		0.40	%
Portfolio turnover rate			26	%		42	%		62	%		63	%		31	%		123	%		69	%

(1)See Note 5 to financial statements.

(2)Based on average shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF
IVY GLOBAL NATURAL RESOURCES FUND

Portfolio Highlights

On September 30, 2007, Ivy Global Natural Resources Fund had net assets totaling
$7,585,302,492 invested in a diversified portfolio of:

57.89%		Foreign Common Stocks
40.61%		Domestic Common Stocks
1.50%		Cash and Cash Equivalents, Corporate Debt Securities and Unrealized Loss Open Forwardon Open Forward Currency Contracts

Country Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:

North America	$	53.89
United States	$	40.61
Canada	$	11.70
Mexico	$	1.58
South America ⁽¹⁾	$	12.93
Europe	$	11.51
Other Europe ⁽²⁾	$	4.17
France	$	3.03
Germany	$	2.23
Luxembourg	$	2.08
Pacific Basin	$	10.24
China	$	3.32
Other Pacific Basin ⁽³⁾	$	3.19
Papua New Guinea	$	1.92
Thailand	$	1.81
Other	$	5.19
South Africa	$	5.12
Cyprus	$	0.07
Bahamas/Caribbean	$	4.82
Cayman Islands	$	4.08
Bermuda	$	0.74
Cash and Cash Equivalents and Unrealized Loss on Open Forward Currency Contracts	$	1.42

(1)Includes $12.93 Brazil.
(2)Includes $0.81 Norway, $1.64 Russia, $0.49 Switzerland and $1.23 United Kingdom.
(3)Includes $0.15 Australia, $0.27 Hong Kong, $0.83 Japan, $0.23 Malaysia, $0.15 Philippines,
$0.42 Singapore and $1.14 Taiwan.

Sector Weightings

Energy Stocks	$	43.18
Raw Materials Stocks	$	27.95
Capital Goods Stocks	$	7.73
Multi-Industry Stocks	$	6.04
Miscellaneous Stocks	$	3.95
Shelter Stocks	$	3.55
Utilities Stocks	$	3.08
Technology Stocks	$	3.02
Cash and Cash Equivalents, Corporate Debt Securities and Unrealized Loss on Open Forward Currency Contracts	$	1.50

The Investments of Ivy Global Natural Resources Fund
September 30, 2007 (Unaudited)
COMMON STOCKS	Shares			Value


Australia - 0.15%
Sino Gold Mining Limited (A)*		1,657,600	$	11,060,963

Bermuda - 0.74%
Aquarius Platinum Limited (A)		500,000		17,595,548
Weatherford International Ltd.*		575,000		38,628,500
				56,224,048
Brazil - 12.85%
Aracruz Celulose S.A., ADR		500,000		36,795,000
Bradespar S.A. (A)		1,700,000		96,463,175
Brasil Ecodiesel Industria e Comercio de Biocombustiveis e Oleos Vegetais S.A. (A)*		600,000		3,891,980
CPFL Energia S.A. (A)		850,000		16,554,828
CPFL Energia S.A., ADR		275,000		16,013,250
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (A)*		750,000		18,707,038
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP, ADR		850,000		41,990,000
Companhia Energetica de Minas Gerais - CEMIG, ADR		3,000,000		63,990,000
Companhia Vale do Rio Doce, ADR		9,500,000		322,335,000
Cosan S.A. Industria e Comercio, Class A*		2,500,000		32,250,000
Suzano Bahia Sul Papel E Celulose S.A. (A)		9,917,200		157,658,051
Usinas Siderurgicas de Minas Gerais S.A. - USIMINA S (A)		1,200,000		93,617,021
Votorantim Celulose e Papel S.A. (A)		850,000		24,405,619
Votorantim Celulose e Papel S.A., ADR		1,750,000		50,085,000
				974,755,962
Canada - 11.70%
ARISE Technologies Corporation (A)*		5,000,000		8,445,182
Agnico-Eagle Mines Limited (A)		3,000,000		148,786,005
Canadian Oil Sands Trust (A)		1,000,000		33,177,500
Eldorado Gold Corporation (A)*		2,854,900		17,623,371
Ferus Gas Industries Trust (A)(B)(C)*		615,000		2,164,078
Goldcorp Inc. (A)		5,000,000		152,817,574
IAMGOLD Corporation (A)	10,000,000			86,965,264
Kinross Gold Corporation (A)*		5,500,000		82,169,607
MGM Energy Corp. (A)*		5,060,500		13,635,088
OPTI Canada Inc. (A)*		1,300,000		24,336,199
Pason Systems Inc. (A)		2,000,000		29,920,072
Progress Energy Trust (A)		900,000		10,885,236
Progress Energy Trust (A)(B)		826,900		10,001,113
Savanna Energy Services Corp. (A)*		800,000		13,673,151
Silver Wheaton Corp. (A)*		6,000,000		83,667,622
Suncor Energy Inc. (A)		500,000		47,484,040
Talisman Energy Inc. (A)		1,000,000		19,635,047
Trican Well Service Ltd. (A)		3,500,000		71,256,221
UTS Energy Corporation (A)*		2,000,000		11,099,382
Uranium One Inc. (A)*		1,000,000		13,220,731
Xtreme Coil Drilling Corp. (A)(B)*		650,000		6,691,801
				887,654,284
Cayman Islands - 4.08%
Neo-Neon Holdings Limited (A)*		6,972,200		9,058,474
Noble Corporation		4,700,000		230,535,000
Suntech Power Holdings Co., Ltd., ADR*		1,750,000		69,825,000
				309,418,474
China - 3.32%
LDK Solar Co., Ltd., ADR*		1,408,300		97,031,870
Xinao Gas Holdings Limited (A)	16,123,000			32,893,712
Yingli Green Energy Holding Company Limited*		4,670,200		121,752,114
				251,677,696
Cyprus - 0.07%
Buried Hill Energy (Cyprus) Public Company Limited (A)(B)(C)*		3,335,000		5,002,500

France - 3.03%
Schneider Electric SA (A)		550,000		69,486,232
THEOLIA (A)*		1,000,000		26,665,146
TOTAL S.A. (A)		750,000		60,980,479
Vallourec (A)		252,616		72,763,667
				229,895,524
Germany - 2.23%
Q-Cells AG (A)*		700,000		71,667,926
SGL Carbon AG (A)*		500,000		28,968,045
Siemens AG (A)		500,000		68,623,537
				169,259,508
Hong Kong - 0.27%
Guangdong Investment Limited (A)	30,000,000			20,568,959

Japan - 0.83%
DOWA HOLDINGS Co., Ltd. (A)		2,500,000		31,667,610
Sharp Corporation (A)		1,000,000		18,151,743
Sumitomo Electric Industries, Ltd. (A)		850,000		13,541,984
				63,361,337
Luxembourg - 2.08%
Tenaris S.A., ADR		3,000,000		157,860,000

Malaysia - 0.23%
IOI Corporation Berhad (A)		1,997,500		3,546,552
Kuala Lumpur Kepong Berhad (A)		3,500,000		13,558,327
				17,104,879
Mexico - 1.58%
Cemex, S.A. de C.V., ADR*		4,000,000		119,680,000

Norway - 0.81%
Statoil ASA (A)		1,800,000		61,349,409

Papua New Guinea - 1.92%
Lihir Gold Limited (A)*	37,000,000			129,358,002
Lihir Gold Limited, ADR*		450,040		16,169,937
				145,527,939
Philippines - 0.15%
PNOC Energy Development Corporation (A)	80,000,000			11,365,150

Russia - 1.64%
OAO LUKOIL, ADR		1,500,000		124,650,000

Singapore - 0.42%
Bio-Treat Technology Limited (A)	10,000,000			6,125,883
China Energy Limited (A)*	25,000,000			25,580,613
				31,706,496
South Africa - 5.12%
Anglo Platinum Limited (A)		325,000		49,184,242
Gold Fields Limited (A)		5,500,000		99,113,843
Gold Fields Limited, ADR		8,000,000		144,720,000
Impala Platinum Holdings Limited (A)		2,296,200		79,991,871
Mvelaphanda Resources Limited (A)*		2,000,000		15,673,581
				388,683,537
Switzerland - 0.49%
Givaudan SA, Registered Shares (A)		40,000		36,968,005

Taiwan - 1.14%
Everlight Electronics Co., Ltd. (A)*		7,724,406		33,728,447
Motech Industries Inc. (A)		3,395,013		36,930,583
Motech Industries Inc., GDR (B)		1,481,681		16,117,578
				86,776,608
Thailand - 1.81%
PTT Public Company Limited (A)		9,000,000		88,227,571
Thai Oil Public Company Limited (A)	19,440,000			48,777,243
				137,004,814
United Kingdom - 1.23%
BG Group plc (A)		2,511,700		43,475,288
Randgold Resources Limited, ADR		1,500,000		49,815,000
				93,290,288
United States - 40.61%
Allegheny Technologies Incorporated		850,000		93,457,500
Andersons, Inc. (The)		734,000		35,228,330
Arch Coal, Inc.		2,472,900		83,435,646
Bunge Limited		560,000		60,172,000
Burlington Northern Santa Fe Corporation		400,000		32,468,000
CONSOL Energy Inc.		5,684,300		264,888,380
Cameron International Corporation*		450,000		41,530,500
Celanese Corporation, Series A		750,000		29,235,000
Chevron Corporation		350,000		32,753,000
ConocoPhillips		1,500,000		131,655,000
Cytec Industries Inc.		400,000		27,356,000
Diamond Offshore Drilling, Inc.		1,785,000		202,222,650
First Solar, Inc.*		115,000		13,527,450
Foundation Coal Holdings, Inc.		500,000		19,600,000
General Electric Company		1,750,000		72,450,000
GlobalSanteFe Corporation		1,150,000		87,423,000
Halliburton Company		6,500,000		249,600,000
Helix Energy Solutions Group, Inc.*		2,000,000		84,920,000
Konarka Technologies, Inc. (B)(C)*		3,500,000		10,850,000
MEMC Electronic Materials, Inc.*		2,100,000		123,606,000
Oceaneering International, Inc.*		1,000,000		75,800,000
Peabody Energy Corporation		4,500,000		215,415,000
Praxair, Inc.		1,250,000		104,700,000
Smith International, Inc.		2,500,000		178,500,000
Sunoco, Inc.		1,900,000		134,482,000
SunPower Corporation, Class A*		400,000		33,094,000
Superior Energy Services, Inc.*		1,750,000		62,020,000
Tesoro Corporation		3,250,000		149,565,000
Ultra Petroleum Corp.*		900,000		55,836,000
Valero Energy Corporation		4,750,000		319,105,000
W-H Energy Services, Inc.*		750,000		55,312,500
				3,080,207,956

TOTAL COMMON STOCKS - 98.50%			$	7,471,054,336

(Cost: $5,588,434,445)

CORPORATE DEBT SECURITIES - 0.08%		Principal Amount in Thousands


Brazil
Bahia Sul Celulose S.A.,
0.0%, 12-1-12 (B)(D)	BRL10,692			$	6,335,526
(Cost: $5,244,566)


UNREALIZED LOSS ON OPEN FORWARD CURRENCY CONTRACTS - (0.64%)		Face Amount in Thousands


Canadian Dollar, 10-3-07 (D)	CAD71,000				(4,090,134	)
Canadian Dollar, 10-10-07 (D)			62,000		(3,582,794	)
Canadian Dollar, 10-17-07 (D)			87,500		(3,243,083	)
Canadian Dollar, 10-24-07 (D)			85,000		(4,523,286	)
Canadian Dollar, 10-31-07 (D)			73,000		(4,674,761	)
Canadian Dollar, 11-7-07 (D)			75,700		(4,918,438	)
Canadian Dollar, 11-14-07 (D)			70,700		(2,890,816	)
Canadian Dollar, 11-28-07 (D)			61,000		(3,128,062	)
Canadian Dollar, 12-5-07 (D)			77,500		(2,895,842	)
Canadian Dollar, 12-12-07 (D)			50,000		(2,442,243	)
Canadian Dollar, 12-19-07 (D)			77,500		(2,055,624	)
Canadian Dollar, 12-28-07 (D)			77,500		(555,448	)
South African Rand, 10-3-07 (D)	ZAR157,000				(943,535	)
South African Rand, 10-10-07 (D)			9,500		(464,551	)
South African Rand, 10-11-07 (D)			103,000		(480,050	)
South African Rand, 10-17-07 (D)			120,000		(354,897	)
South African Rand, 10-24-07 (D)			120,000		(353,647	)
South African Rand, 10-31-07 (D)			125,150		(832,589	)
South African Rand, 11-7-07 (D)			99,000		(480,708	)
South African Rand, 11-14-07 (D)			131,150		(638,638	)
South African Rand, 11-21-07 (D)			130,000		(1,152,098	)
South African Rand, 11-28-07 (D)			130,000		(897,417	)
South African Rand, 12-5-07 (D)			130,000		(1,042,873	)
South African Rand, 12-12-07 (D)			146,000		(963,002	)
South African Rand, 12-20-07 (D)			119,000		(701,268	)
South African Rand, 12-21-07 (D)			127,000		(273,366	)
				$	(48,579,170	)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Commercial Paper
Banks - 0.32%
Lloyds TSB Bank PLC:
4.97%, 10-17-07	$	7,000	$	6,984,538
5.59%, 10-17-07		17,750		17,705,901
				24,690,439
Capital Equipment - 0.22%
Deere (John) Capital Corporation:
5.26%, 10-5-07		6,000		5,996,493
5.18%, 11-20-07		10,867		10,788,818
				16,785,311
Chemicals - Specialty - 0.02%
Air Products and Chemicals, Inc.,
5.05%, 10-1-07		1,469		1,469,000

Finance Companies - 0.16%
Unilever Capital Corporation,
5.32%, 10-5-07		12,000		11,992,907

Food and Related - 0.20%
Archer Daniels Midland Company,
5.1%, 11-6-07		15,000		14,923,500

Household - General Products - 0.20%
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)),
5.2%, 10-9-07		15,000		14,982,667

Mining - 0.17%
BHP Billiton Finance (USA) Limited (BHP Billiton Limited):
5.0%, 10-1-07		10,649		10,649,000
5.1%, 10-1-07		2,104		2,104,000
				12,753,000
Multiple Industry - 0.05%
Honeywell International Inc.,
4.76%, 11-21-07		4,000		3,973,026

Security and Commodity Brokers - 0.06%
UBS Finance Delaware LLC (UBS AG),
5.52%, 10-15-07		5,000		4,989,267

Total Commercial Paper - 1.40%				106,559,117


Municipal Obligation - Taxable - 0.02%
Washington
Washington State Housing Finance Commission, Taxable Variable Rate Demand Multifamily Revenue Bonds (Seaport Landing Retirement Project), Series 2005B (Bank of America),
5.06%, 10-1-07 (E)	1,320			1,320,000

TOTAL SHORT-TERM SECURITIES - 1.42%			$	107,879,117

(Cost: $107,879,117)

TOTAL INVESTMENT SECURITIES - 99.36%			$	7,536,689,809

(Cost: $5,701,558,128)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.64%				48,612,683


NET ASSETS - 100.00%			$	7,585,302,492

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 transacations exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $57,162,596, or 0.75% of net assets.

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

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

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY GLOBAL NATURAL RESOURCES FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $5,701,558) (Notes 1 and 3)	$	7,536,690
Cash denominated in foreign currencies (cost - $843)		842
Receivables:
Fund shares sold		57,603
Investment securities sold		46,898
Dividends and interest		10,581
Prepaid and other assets		109

Total assets		7,652,723

LIABILITIES
Payable for investment securities purchased		50,736
Payable to Fund shareholders		4,684
Accrued management fee (Note 2)		4,665
Accrued service fee (Note 2)		3,022
Accrued shareholder servicing (Note 2)		1,531
Accrued distribution fee (Note 2)		1,161
Due to custodian		404
Accrued accounting services fee (Note 2)		15
Accrued administrative fee (Note 2)		8
Other		1,195

Total liabilities		67,421

Total net assets	$	7,585,302

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	5,043,067
Accumulated undistributed income:
Accumulated undistributed net investment income		12,828
Accumulated undistributed net realized gain on investment transactions		694,251
Net unrealized appreciation in value of investments		1,835,156

Net assets applicable to outstanding units of capital	$	7,585,302

Net asset value per share (net assets divided by shares outstanding):
Class A	$40.23
Class B	$37.68
Class C	$36.95
Class E	$40.12
Class I	$40.63
Class R	$40.10
Class Y	$40.46
Advisor Class	$40.05
Capital shares outstanding:
Class A		121,888
Class B		9,404
Class C		44,417
Class E		39
Class I		1,087
Class R		292
Class Y		15,523
Advisor Class		10

See Notes to Financial Statements.

Statement of Operations
      IVY GLOBAL NATURAL RESOURCES FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                               (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $3,370)	$	47,675
Interest and amortization (net of foreign withholding taxes of $37)		9,513

Total income		57,188

Expenses (Note 2):
Investment management fee		25,378
Service fee:
Class A		4,968
Class B		413
Class C		1,735
Class R		9
Class Y		537
Distribution fee:
Class A		219
Class B		1,174
Class C		5,204
Class E		1
Class R		9
Shareholder servicing:
Class A		3,427
Class B		315
Class C		857
Class E		5
Class I		18
Class R		7
Class Y		334
Advisor Class		––	*
Custodian fees		796
Accounting services fee		87
Administrative fee		50
Audit fees		28
Legal fees		27
Other		1,084

Total		46,682
Less expenses in excess of voluntary limit (Note 2)		(132	)

Total expenses		46,550

Net investment income		10,638

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities	$	619,676
Realized net loss on forward currency contracts		(36,329	)
Realized net loss on foreign currency transactions		(2,773	)

Realized net gain on investments		580,574

Unrealized appreciation in value of securities during the period		935,796
Unrealized depreciation in value of forward currency contracts during the period		(44,790	)
Unrealized appreciation in value of foreign currency exchange transactions during the period		66

Unrealized appreciation in value of investments during the period		891,072

Net gain on investments		1,471,646

Net increase in net assets resulting from operations	$	1,482,284

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
IVY GLOBAL NATURAL RESOURCES FUND
(In Thousands) (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE IN NET ASSETS
Operations:
Net investment income		$	10,638		$	14,992
Realized net gain on investments			580,574			369,398
Unrealized appreciation			891,072			225,771

Net increase in net assets resulting from operations			1,482,284			610,161

Distributions to shareholders from (Note 1F): ⁽¹⁾
Net investment income:
Class A			(––	)		(14,592	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class R			(––	)		(4	)
Class Y			(––	)		(1,219	)
Advisor Class			(––	)		(2	)
Realized gains on investment transactions:
Class A			(––	)		(261,685	)
Class B			(––	)		(23,885	)
Class C			(––	)		(96,422	)
Class E			(––	)		NA
Class I			(––	)		NA
Class R			(––	)		(115	)
Class Y			(––	)		(17,486	)
Advisor Class			(––	)		(28	)

			(––	)		(415,438	)

Capital share transactions (Note 5)			1,017,965			1,406,805

Total increase			2,500,249			1,601,528
NET ASSETS
Beginning of period			5,085,053			3,483,525

End of period		$	7,585,302		$	5,085,053

Undistributed net investment income		$	12,828		$	4,963

(1)See "Financial Highlights" on pages 119 - 126.

See Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL NATURAL RESOURCES FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	31.67		$	30.13		$	22.65		$	17.63		$	16.69		$	11.50		$	11.05

Income (loss) from investment operations:
Net investment income (loss)			0.08			0.17	⁽¹⁾		0.12			(0.04	)		0.03			0.10			(0.11	)⁽¹⁾
Net realized and unrealized gain on investments			8.48			4.40	⁽¹⁾		8.88			5.06			0.91			5.14			0.63	⁽¹⁾⁽²⁾

Total from investment operations			8.56			4.57			9.00			5.02			0.94			5.24			0.52

Less distributions from:
Net investment income			(0.00	)		(0.16	)		(0.00	)		(0.00	)*		(0.00	)		(0.05	)		(0.00	)
Capital gains			(0.00	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)		(0.07	)

Total distributions			(0.00	)		(3.03	)		(1.52	)		(0.00	)*		(0.00	)		(0.05	)		(0.07	)

Net asset value, end of period		$	40.23		$	31.67		$	30.13		$	22.65		$	17.63		$	16.69		$	11.50

Total return ⁽³⁾			27.03	%		15.47	%		40.76	%		28.50	%		5.63	%		45.61	%		4.66	%⁽²⁾
Net assets, end of period (in millions)		$4,904			$3,360			$2,343			$895			$192			$95			$17
Ratio of expenses to average net assets including reimbursement			1.29	%⁽⁴⁾		1.31	%		1.40	%		1.55	%		1.65	%⁽⁴⁾		1.89	%		2.22	%
Ratio of net investment income (loss) to average net assets including reimbursement			0.53	%⁽⁴⁾		0.57	%		0.73	%		-0.52	%		-0.80	%⁽⁴⁾		-0.66	%		-0.91	%
Ratio of expenses to average net assets excluding reimbursement			1.29	%⁽⁴⁾⁽⁵⁾		1.31	%⁽⁵⁾		1.40	%⁽⁵⁾		1.55	%⁽⁵⁾		1.65	%⁽⁴⁾⁽⁵⁾		1.89	%⁽⁵⁾		2.38	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			0.53	%⁽⁴⁾⁽⁵⁾		0.57	%⁽⁵⁾		0.73	%⁽⁵⁾		-0.52	%⁽⁵⁾		-0.80	%⁽⁴⁾⁽⁵⁾		-0.66	%⁽⁵⁾		-1.07	%
Portfolio turnover rate			65	%		106	%		104	%		110	%		29	%		58	%		67	%

*Not shown due to rounding.

(1)Based on average shares outstanding.

(2)Includes redemption fees added to capital.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL NATURAL RESOURCES FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	29.78		$	28.57		$	21.72		$	17.04		$	16.16		$	11.19		$	10.81

Income (loss) from investment operations:
Net investment income (loss)			(0.04	)		(0.05	)		0.03			(0.04	)		(0.01	)		(0.06	)		(0.19	)⁽¹⁾
Net realized and unrealized gain on investments			7.94			4.13			8.34			4.72			0.89			5.03			0.57	⁽¹⁾

Total from investment operations			7.90			4.08			8.37			4.68			0.88			4.97			0.38

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.00	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Net asset value, end of period		$	37.68		$	29.78		$	28.57		$	21.72		$	17.04		$	16.16		$	11.19

Total return			26.53	%		14.55	%		39.59	%		27.46	%		5.45	%		44.42	%		3.52	%
Net assets, end of period (in millions)		$354			$272			$223			$110			$30			$21			$9
Ratio of expenses to average net assets including reimbursement			2.08	%⁽²⁾		2.12	%		2.23	%		2.39	%		2.42	%⁽²⁾		2.90	%		2.93	%
Ratio of net investment loss to average net assets including reimbursement			-0.26	%⁽²⁾		-0.24	%		-0.10	%		-1.35	%		-1.59	%⁽²⁾		-1.54	%		-1.62	%
Ratio of expenses to average net assets excluding reimbursement			2.08	%⁽²⁾⁽³⁾		2.12	%⁽³⁾		2.23	%⁽³⁾		2.39	%⁽³⁾		2.42	%⁽²⁾⁽³⁾		2.90	%⁽³⁾		3.09	%
Ratio of net investment loss to average net assets excluding reimbursement			-0.26	%⁽²⁾⁽³⁾		-0.24	%⁽³⁾		-0.10	%⁽³⁾		-1.35	%⁽³⁾		-1.59	%⁽²⁾⁽³⁾		-1.54	%⁽³⁾		-1.78	%
Portfolio turnover rate			65	%		106	%		104	%		110	%		29	%		58	%		67	%

(1)Based on average shares outstanding.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL NATURAL RESOURCES FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	29.19		$	28.04		$	21.32		$	16.72		$	15.86		$	10.97		$	10.61

Income (loss) from investment operations:
Net investment income (loss)			(0.02	)		(0.03	)		0.02			(0.09	)		0.00			0.04			(0.18	)⁽¹⁾
Net realized and unrealized gain on investments			7.78			4.05			8.22			4.69			0.86			4.85			0.55	⁽¹⁾

Total from investment operations			7.76			4.02			8.24			4.60			0.86			4.89			0.37

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)		(0.01	)

Total distributions			(0.00	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)		(0.01	)

Net asset value, end of period		$	36.95		$	29.19		$	28.04		$	21.32		$	16.72		$	15.86		$	10.97

Total return			26.58	%		14.65	%		39.72	%		27.51	%		5.42	%		44.58	%		3.46	%
Net assets, end of period (in millions)		$1,641			$1,138			$801			$312			$64			$34			$5
Ratio of expenses to average net assets including reimbursement			1.99	%⁽²⁾		2.04	%		2.15	%		2.31	%		2.38	%⁽²⁾		2.65	%		2.94	%
Ratio of net investment loss to average net assets including reimbursement			-0.18	%⁽²⁾		-0.16	%		-0.02	%		-1.28	%		-1.54	%⁽²⁾		-1.48	%		-1.64	%
Ratio of expenses to average net assets excluding reimbursement			1.99	%⁽²⁾⁽³⁾		2.04	%⁽³⁾		2.15	%⁽³⁾		2.31	%⁽³⁾		2.38	%⁽²⁾⁽³⁾		2.65	%⁽³⁾		3.10	%
Ratio of net investment loss to average net assets excluding reimbursement			-0.18	%⁽²⁾⁽³⁾		-0.16	%⁽³⁾		-0.02	%⁽³⁾		-1.28	%⁽³⁾		-1.54	%⁽²⁾⁽³⁾		-1.48	%⁽³⁾		-1.80	%
Portfolio turnover rate			65	%		106	%		104	%		110	%		29	%		58	%		67	%

(1)Based on average shares outstanding

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL NATURAL RESOURCES FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	31.67

Income (loss) from investment operations:
Net investment loss			(0.12	)⁽²⁾
Net realized and unrealized gain on investments			8.57	⁽²⁾

Total from investment operations			8.45

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	40.12

Total return ⁽³⁾			25.44	%
Net assets, end of period (in millions)		$2
Ratio of expenses to average net assets			2.28	%⁽⁴⁾
Ratio of net investment loss to average net assets			-0.57	%⁽⁴⁾
Portfolio turnover rate			65	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL NATURAL RESOURCES FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	31.84

Income from investment operations:
Net investment income			0.12	⁽²⁾
Net realized and unrealized gain on investments			8.67	⁽²⁾

Total from investment operations			8.79

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	40.63

Total return			26.34	%
Net assets, end of period (in millions)			$44
Ratio of expenses to average net assets			1.03	%⁽³⁾
Ratio of net investment income to average net assets			0.66	%⁽³⁾
Portfolio turnover rate			65	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL NATURAL RESOURCES FUND
      Class R Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended			For the period from 12-29-05⁽¹⁾ to
	9-30-07				3-31-07			3-31-06


Net asset value, beginning of period		$	31.62		$	30.10		$	26.11

Income from investment operations:
Net investment income			0.05			0.05	⁽²⁾		0.06
Net realized and unrealized gain on investments			8.43			4.44	⁽²⁾		3.93

Total from investment operations			8.48			4.49			3.99

Less distributions from:
Net investment income			(0.00	)		(0.10	)		(0.00	)
Capital gains			(0.00	)		(2.87	)		(0.00	)

Total distributions			(0.00	)		(2.97	)		(0.00	)

Net asset value, end of period		$	40.10		$	31.62		$	30.10

Total return			26.85	%		15.20	%		15.28	%
Net assets, end of period (in thousands)	$11,728				$3,893			$115
Ratio of expenses to average net assets			1.57	%⁽³⁾		1.58	%		1.69	%⁽³⁾
Ratio of net investment income to average net assets			0.22	%⁽³⁾		0.23	%		0.82	%⁽³⁾
Portfolio turnover rate			65	%		106	%		104	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the 12 months ended March 31, 2006.

See Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL NATURAL RESOURCES FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the period from 7-24-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04				12-31-03

Net asset value, beginning of period		$	31.84		$	30.27		$	22.70		$	17.66		$	16.70			$	12.60

Income (loss) from investment operations:
Net investment income (loss)			0.07			0.21	⁽²⁾		0.24	⁽²⁾		(0.02	)		0.01				0.00
Net realized and unrealized gain on investments			8.55			4.43	⁽²⁾		8.85	⁽²⁾		5.13			0.95				4.16

Total from investment operations			8.62			4.64			9.09			5.11			0.96				4.16

Less distributions from:
Net investment income			(0.00	)		(0.20	)		(0.00	)		(0.07	)		(0.00	)			(0.06	)
Capital gains			(0.00	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)			(0.00	)

Total distributions			(0.00	)		(3.07	)		(1.52	)		(0.07	)		(0.00	)			(0.06	)

Net asset value, end of period		$	40.46		$	31.84		$	30.27		$	22.70		$	17.66			$	16.70

Total return			27.07	%		15.63	%		41.07	%		28.98	%		5.75	%			33.03	%
Net assets, end of period (in millions)		$628			$311			$116			$21			$4				$1
Ratio of expenses to average net assets including reimbursement			1.20	%⁽³⁾⁽⁴⁾		1.20	%⁽⁴⁾		1.20	%⁽⁴⁾		1.20	%⁽⁴⁾		1.20	%⁽³⁾⁽⁴⁾			1.39	%⁽³⁾
Ratio of net investment income (loss) to average net assets including reimbursement			0.60	%⁽³⁾⁽⁴⁾		0.66	%⁽⁴⁾		0.91	%⁽⁴⁾		-0.19	%⁽⁴⁾		-0.35	%⁽³⁾⁽⁴⁾			-0.54	%⁽³⁾
Ratio of expenses to average net assets excluding reimbursement			1.26	%⁽³⁾⁽⁴⁾		1.27	%⁽⁴⁾		1.35	%⁽⁴⁾		1.48	%⁽⁴⁾		1.63	%⁽³⁾⁽⁴⁾			1.39	%⁽³⁾⁽⁵⁾
Ratio of net investment income (loss) to average net assets excluding reimbursement			0.54	%⁽³⁾⁽⁴⁾		0.59	%⁽⁴⁾		0.76	%⁽⁴⁾		-0.47	%⁽⁴⁾		-0.79	%⁽³⁾⁽⁴⁾			-0.54	%⁽³⁾⁽⁵⁾
Portfolio turnover rate			65	%		106	%		104	%		110	%		29	%			58	%⁽⁶⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)See Note 2.

(5)There was no waiver of expenses during the period.

(6)For the 12 months ended December 31, 2003.

See Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL NATURAL RESOURCES FUND
      Advisor Class Shares ⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	31.48		$	29.92		$	22.45		$	17.47		$	16.54		$	11.43		$	11.02

Income (loss) from investment operations:
Net investment income (loss)			0.16			0.31			0.13			(0.14	)		(0.03	)		(0.58	)		(0.07	)
Net realized and unrealized gain on investments			8.41			4.34			8.86			5.14			0.96			5.78			0.56

Total from investment operations			8.57			4.65			8.99			5.00			0.93			5.20			0.49

Less distributions from:
Net investment income			(0.00	)		(0.22	)		(0.00	)		(0.02	)		(0.00	)		(0.09	)		(0.00	)
Capital gains			(0.00	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)		(0.08	)

Total distributions			(0.00	)		(3.09	)		(1.52	)		(0.02	)		(0.00	)		(0.09	)		(0.08	)

Net asset value, end of period		$	40.05		$	31.48		$	29.92		$	22.45		$	17.47		$	16.54		$	11.43

Total return			27.22	%		15.86	%		41.09	%		28.63	%		5.62	%		45.55	%		4.46	%
Net assets, end of period (in thousands)		$385			$322			$368			$476			$512			$484			$570
Ratio of expenses to average net assets including reimbursement			0.96	%⁽²⁾		0.95	%		1.25	%		1.47	%		1.57	%⁽²⁾		2.19	%		1.82	%
Ratio of net investment income (loss) to average net assets including reimbursement			0.86	%⁽²⁾		0.94	%		0.97	%		-0.36	%		-0.74	%⁽²⁾		-0.41	%		-0.51	%
Ratio of expenses to average net assets excluding reimbursement			0.96	%⁽²⁾⁽³⁾		0.95	%⁽³⁾		1.25	%⁽³⁾		1.47	%⁽³⁾		1.57	%⁽²⁾⁽³⁾		2.19	%⁽³⁾		1.98	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			0.86	%⁽²⁾⁽³⁾		0.94	%⁽³⁾		0.97	%⁽³⁾		-0.36	%⁽³⁾		-0.74	%⁽²⁾⁽³⁾		-0.41	%⁽³⁾		-0.67	%
Portfolio turnover rate			65	%		106	%		104	%		110	%		29	%		58	%		67	%

(1)See Note 5 to financial statements.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY INTERNATIONAL BALANCED FUND

Portfolio Highlights

On September 30, 2007, Ivy International Balanced Fund had net assets totaling
$335,226,625 invested in a diversified portfolio of:

65.81%		Foreign Common Stocks
26.33%		Other Government Securities
3.73%		Cash and Cash Equivalents
2.85%		Foreign Corporate Debt Securities
1.28%		Domestic Corporate Debt Securities

Country Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:

Europe	$	66.57
United Kingdom	$	16.96
Other Europe ⁽¹⁾	$	11.44
Sweden	$	9.40
France	$	8.17
Germany	$	8.07
Norway	$	4.75
Netherlands	$	4.55
Switzerland	$	3.23
Pacific Basin	$	27.05
Singapore	$	5.02
Other Pacific Basin ⁽²⁾	$	4.79
Malaysia	$	4.66
Japan	$	4.36
South Korea	$	4.31
Taiwan	$	3.91
Cash and Cash Equivalents	$	3.73
Other ⁽³⁾	$	2.65

(1)Includes $0.18 Austria, $0.81 Belgium, $0.50 Denmark, $1.82 Finland, $0.24 Ireland,
$2.44 Italy, $2.89 Poland and $2.56 Spain.
(2)Includes $3.01 Australia, $0.93 China, $0.76 Hong Kong and $0.09 New Zealand.
(3)Includes $0.24 Canada, $1.10 Cayman Islands, $1.02 Israel and $0.29 Supernational.

Sector Weightings

Other Government Securities	$	26.33
Financial Services Stocks	$	16.20
Utilities Stocks	$	11.37
Technology Stocks	$	6.27
Energy Stocks	$	5.03
Consumer Durables Stocks	$	4.92
Health Care Stocks	$	4.18
Consumer Services Stocks	$	4.16
Corporate Debt Securities	$	4.13
Miscellaneous Stocks	$	3.91
Cash and Cash Equivalents	$	3.73
Business Equipment and Services Stocks	$	2.86
Retail Stocks	$	2.70
Capital Goods Stocks	$	2.18
Shelter Stocks	$	2.03

The Investments of Ivy International Balanced Fund
September 30, 2007 (Unaudited)
COMMON STOCKS		Shares			Value


Australia - 1.58%
National Australia Bank Limited (A)			54,242	$	1,911,309
Telekom Austria Aktiengesellschaft (A)			128,820		3,370,712
					5,282,021
Belgium - 0.59%
Belgacom SA (A)			42,790		1,985,465

Cayman Island- 1.10%
ACE Limited			46,490		2,815,899
XL Capital Ltd, Class A			10,870		860,904
					3,676,803
China - 0.93%
China Telecom Corporation Limited (A)	3,774,000				2,844,876
China Telecom Corporation Limited (A)(B)			360,000		271,371
					3,116,247
Denmark - 0.50%
Vestas Wind Systems A/S (A)*			21,080		1,665,330

Finland - 1.50%
Stora Enso Oyj, Class R (A)			104,960		2,044,452
UPM-Kymmene Corporation (A)			124,110		3,001,477
					5,045,929
France - 8.17%
AXA S.A. (A)			109,570		4,902,831
France Telecom (A)			220,724		7,393,242
Sanofi-Aventis (A)			69,548		5,888,805
THOMSON (A)			231,400		3,524,009
TOTAL S.A. (A)			41,440		3,369,375
Vivendi Universal (A)			54,670		2,307,508
					27,385,770
Germany - 3.87%
Bayerische Motoren Werke Aktiengesellschaft (A)			47,660		3,082,007
Deutsche Post AG (A)			70,260		2,039,803
E.ON AG (A)			5,810		1,072,293
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A)			17,210		3,298,242
Siemens AG (A)			25,310		3,473,723
					12,966,068
Hong Kong - 0.76%
Hutchison Whampoa Limited, Ordinary Shares (A)			239,000		2,556,372

Israel - 1.02%
Check Point Software Technologies Ltd.*			135,710		3,416,499

Italy - 2.44%
Eni S.p.A. (A)			83,858		3,107,800
Mediaset S.p.A. (A)			341,234		3,522,842
UniCredito Italiano S.p.A. (A)			179,693		1,537,393
					8,168,035
Japan - 4.36%
AIFUL Corporation (A)			54,200		849,345
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)			189		1,661,864
Konica Minolta Holdings, Inc. (A)			76,500		1,296,700
NGK SPARK PLUG CO., LTD. (A)			176,000		2,735,037
Nissan Motor Co., Ltd. (A)			234,000		2,344,787
Promise Co., Ltd. (A)			46,200		1,126,192
Sony Corporation (A)			61,500		2,982,240
USS Co., Ltd. (A)			24,690		1,622,857
					14,619,022
Netherlands - 4.55%
Akzo Nobel N.V. (A)			16,030		1,321,185
ING Groep N.V., Certicaaten Van Aandelen (A)			138,500		6,147,963
Koninklijke Philips Electronics N.V., Ordinary Shares (A)			40,460		1,826,005
Reed Elsevier NV (A)			183,940		3,493,677
Vedior N.V. (A)			111,960		2,463,379
					15,252,209
Norway - 1.50%
Norske Skogindustrier ASA (A)			163,411		1,748,915
Telenor ASA (A)			163,300		3,271,301
					5,020,216
Singapore - 2.44%
DBS Group Holdings Ltd (A)			33,000		479,838
Flextronics International Ltd.*			237,690		2,658,563
Singapore Telecommunications Limited (A)			931,000		2,519,435
Venture Corporation Limited (A)			226,000		2,510,266
					8,168,102
South Korea - 2.89%
KT Corporation, ADR			48,730		1,220,687
Kookmin Bank, ADR			16,440		1,347,916
SK Telecom Co., Ltd., ADR			41,000		1,217,700
Samsung Electronics Co., Ltd. (A)			7,368		4,629,152
Samsung Electronics Co., Ltd., GDR (B)			4,010		1,259,766
					9,675,221
Spain - 2.41%
Gamesa Corporacion Tecnologica, S.A. (A)			53,110		2,169,718
Repsol YPF, S.A. (A)			70,566		2,520,610
Telefonica, S.A., ADR			40,135		3,362,510
Telefonica, S.A., Brazilian Depositary Receipts (A)			569		15,831
					8,068,669
Sweden - 1.10%
Nordea Bank AB, Finnish Depositary Receipts (A)			89,560		1,559,309
Securitas AB, Class B (A)			105,270		1,388,549
Securitas Systems AB, Class B (A)			204,730		756,129
					3,703,987
Switzerland - 3.23%
Lonza Group Ltd, Registered Shares (A)			5,800		632,682
Nestle S.A., Registered Shares (A)			7,930		3,562,285
Novartis AG, Registered Shares (A)			77,210		4,260,891
Swiss Reinsurance Company, Registered Shares (A)			26,800		2,387,082
					10,842,940
Taiwan - 3.91%
Chunghwa Telecom Co., Ltd., ADR			175,623		3,245,513
Compal Electronics Inc., GDR			55,073		311,350
Compal Electronics Inc., GDR (B)			134,498		760,372
Lite-On Technology Corporation (A)			343,233		536,384
Lite-On Technology Corporation, GDR (A)			259,309		3,985,293
Mega Financial Holding Company (A)	6,790,000				4,286,012
					13,124,924
Thailand - 0.00%
Advanced Info Service Public Company Limited (A)			3,000		7,790

United Kingdom - 16.96%
Aviva plc (A)			296,630		4,466,807
BAE Systems plc (A)			93,350		942,553
BP p.l.c. (A)			424,390		4,927,599
British Sky Broadcasting Group plc (A)			230,870		3,282,892
Compass Group PLC (A)			560,920		3,465,869
Fiberweb plc (A)			51,523		62,195
GlaxoSmithKline plc (A)			145,100		3,850,452
Group 4 Securicor plc (A)			897,590		3,709,657
HSBC Holdings plc (A)			190,630		3,527,802
INVESCO PLC (A)			26,400		357,304
Kingfisher plc (A)			707,280		2,587,398
Old Mutual plc (A)	1,645,380				5,396,399
Pearson plc (A)			86,110		1,334,568
Rentokil Initial plc (A)			376,520		1,285,727
Royal Bank of Scotland Group plc (The) (A)			500,230		5,373,205
Royal Dutch Shell plc, Class B (A)			71,241		2,932,664
tesco plc (A)			157,950		1,419,501
Unilever PLC (A)			52,092		1,646,660
Vodafone Group Plc (A)	1,678,588				6,061,680
Vodafone Group Plc, ADR			6,590		239,217
					56,870,149

TOTAL COMMON STOCKS - 65.81%				$	220,617,768

(Cost: $181,343,434)

CORPORATE DEBT SECURITIES - 4.13%		Principal Amount in Thousands


Germany
KfW, Frankfurt/Main, Federal Republic of Germany:
0.60%, 8-08-11 (C)(D)	JPY950,000				8,270,537
0.60%, 8-08-11 (C)(D)		640,000			5,571,730
(Cost: $13,829,440)				$	13,842,267


OTHER GOVERNMENT SECURITIES


Australia - 1.43%
New South Wales Treasury Corporation,
8.0%, 3-01-08 (C)	AUD4,350				3,878,056
Queensland Treasury Corporation,
6.0%, 7-14-09 (C)			1,050		921,260
					4,799,316
Austria - 0.18%
Republic of Austria:
5.5%, 10-20-07 (C)	EUR360				513,483
4.0%, 7-15-09 (C)			70		99,623
					613,106
Belgium - 0.22%
Belgium Government Bond:
7.5%, 7-29-08 (C)			405		592,998
5.0%, 9-28-12 (C)			100		147,209
					740,207

Canada - 0.24%
Canadian Government Bond
6.0%, 6-01-11 (C)	CAD748			797,491

Finland - 0.32%
Finland Government Bond:
3.0%, 7-04-08 (C)	EUR400			565,757
5.0%, 4-25-09 (C)		60		86,653
5.75%, 2-23-11 (C)		280		418,493
				1,070,903
Germany - 0.07%
Deutsche Bundesrepublik,
5.0%, 7-04-11 (C)		170		249,297

Ireland - 0.24%
Ireland Government Bond,
5.0%, 4-18-13 (C)		540		796,475

Malaysia - 4.66%
Bank Negara Monetary Notes:
0.0%, 12-06-07 (C)	MYR3,400			991,785
0.0%, 12-13-07 (C)		8,665		2,525,955
0.0%, 12-21-07 (C)		19,200		5,592,884
3.546%, 1-11-08 (C)		8,250		2,423,256
3.569%, 2-14-08 (C)		1,450		426,095
0.0%, 2-28-08 (C)		1,160		335,778
3.17%, 5-15-08 (C)		1,400		410,577
0.0%, 9-23-08 (C)		4,530		1,287,429
Malaysian Government Bond,
7.0%, 3-15-09 (C)		580		178,544
Malaysian Treasury Bills:
0.0%, 1-04-08 (C)		400		116,398
0.0%, 2-29-08 (C)		800		231,617
0.0%, 3-28-08 (C)		500		144,393
0.0%, 5-09-08 (C)		2,000		575,388
0.0%, 6-06-08 (C)		1,300		373,005
				15,613,104
New Zealand - 0.09%
New Zealand Government Bond,
6.0%, 11-15-11 (C)	NZD410			303,042

Norway - 3.25%
Norway Government Bond,
5.5%, 5-15-09 (C)	NOK32,920			6,166,868
Norway Treasury Bills:
0.0%, 12-19-07 (C)		23,805		4,376,946
0.0%, 6-18-08 (C)		370		66,290
0.0%, 9-17-08 (C)		1,550		274,337
				10,884,441
Poland - 2.89%
Poland Government Bond:
5.75%, 6-24-08 (C)	PLN1,200			455,918
6.0%, 5-24-09 (C)		9,425		3,605,206
6.25%, 10-24-15 (C)		3,250		1,270,772
5.75%, 9-23-22 (C)		11,570		4,369,334
				9,701,230
Singapore - 2.58%
Singapore Government Bond:
2.625%, 10-01-07 (C)	SGD6,450			4,341,972
4.375%, 1-15-09 (C)		6,200		4,300,976
				8,642,948
South Korea - 1.42%
South Korea Treasury Bond:
4.5%, 9-09-08 (C)	KRW1,000,000			1,083,807
4.25%, 9-10-08 (C)	2,300,000			2,487,026
4.75%, 6-10-09 (C)	1,100,000			1,188,151
				4,758,984
Spain - 0.15%
Spain Government Bond,
6.0%, 1-31-08 (C)	EUR350			501,815

Supranational - 0.29%
European Investment Bank,
0.78125%, 9-21-11 (C)(D)	JPY110,000			957,409

Sweden - 8.30%
Sweden Government Bond:
6.5%, 5-05-08 (C)	SEK118,100			18,599,912
5.0%, 1-28-09 (C)		51,100		8,032,821
Sweden Treasury Bills:
0.0%, 6-18-08 (C)		4,000		603,772
0.0%, 9-17-08 (C)		4,000		597,513
				27,834,018

TOTAL OTHER GOVERNMENT SECURITIES - 26.33%			$	88,263,786

(Cost: $82,005,985)

SHORT-TERM SECURITIES


Chemicals - Petroleum and Inorganic - 0.89%
E.I. du Pont de Nemours and Company,
4.75%, 10-09-07	$	3,000		2,996,833

Chemicals - Specialty- 0.29%
Air Products and Chemicals, Inc.,
5.05%, 10-01-07		964		964,000

Finance Companies - 1.79%
Prudential Funding LLC,
5.23%, 10-05-07		6,000		5,996,513

Household - General Products - 0.89%
Clorox Co.,
5.42%, 10-09-07		3,000		2,996,387

Leisure Time Industry - 0.60%
Walt Disney Company (The),
5.2%, 10-11-07		2,000		1,997,111

Publishing - 0.59%
Gannett Co., Inc.,
5.35%, 10-25-07		2,000		1,992,867

Retail - General Merchandise - 0.60%
Target Corporation,
5.0%, 10-19-07		2,000		1,995,000

TOTAL SHORT-TERM SECURITIES - 5.65%			$	18,938,711

(Cost: $18,938,711)

TOTAL INVESTMENT SECURITIES - 101.92%			$	341,662,532

(Cost: $296,117,570)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.92%)				(6,435,907	)


NET ASSETS - 100.00%			$	335,226,625

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

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

(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, MYR - Malaysian Ringgit, NOK - Norwegian Krone, NZD - New Zealand Dollar, PLN - Polish Zloty, SEK - Swedish Krona, SGD - Singapore Dollar).

(D)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY INTERNATIONAL BALANCED FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (cost - $296,118) (Notes 1 and 3)	$	341,663
Cash		1,168
Cash denominated in foreign currencies (cost - $1,072)		1,101
Receivables:
Dividends and interest		2,444
Fund shares sold		1,148
Prepaid and other assets		37

Total assets		347,561

LIABILITIES
Payable to investment securities purchased		11,136
Payable to Fund shareholders		652
Accrued management fee (Note 2)		186
Accrued service fee (Note 2)		85
Accrued shareholder servicing (Note 2)		81
Accrued distribution fee (Note 2)		30
Accrued accounting services fee (Note 2)		9
Other		155

Total liabilities		12,334

Total net assets	$	335,227

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	278,781
Accumulated undistributed income:
Accumulated undistributed net investment income		3,006
Accumulated undistributed net realized gain on investment transactions		7,799
Net unrealized appreciation in value of investments		45,641

Net assets applicable to outstanding units of capital	$	335,227

Net asset value per share (net assets divided by shares outstanding):
Class A	$17.65
Class B	$17.59
Class C	$17.61
Class E	$17.61
Class I	$17.67
Class Y	$17.66
Capital shares outstanding:
Class A		14,607
Class B		780
Class C		2,141
Class E		26
Class I		1,338
Class Y		107

See Notes to Financial Statements.

Statement of Operations
      IVY INTERNATIONAL BALANCED FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                             (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $530)	$	4,253
Interest and amortization (net of foreign withholding taxes of $16)		1,902

Total income		6,155

Expenses (Note 2):
Investment management fee		1,085
Shareholder servicing:
Class A		300
Class B		28
Class C		37
Class E		1
Class I		9
Class Y		2
Service fee:
Class A		274
Class B		16
Class C		43
Class Y		2
Distribution fee:
Class A		37
Class B		49
Class C		130
Class E		––	*
Custodian fees		59
Accounting services fee		51
Audit fees		16
Legal fees		3
Other		66

Total expenses		2,208

Net investment income		3,947

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		4,984
Realized net gain on foreign currency transactions		2,380

Realized net gain on investments		7,364
Unrealized appreciation in value of investments during the period		7,650

Net gain on investments		15,014

Net increase in net assets resulting from operations	$	18,961

*Not shown due to rounding

See Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY INTERNATIONAL BALANCED FUND
      (In Thousands)                                                                                                                (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE IN NET ASSETS
Operations:
Net investment income		$	3,947		$	2,622
Realized net gain on investments			7,364			8,507
Unrealized appreciation			7,650			19,022

Net increase in net assets resulting from operations			18,961			30,151

Distributions to shareholders from (Note 1F) ^:(1)
Net investment income:
Class A			(3,552	)		(4,320	)
Class B			(130	)		(158	)
Class C			(381	)		(332	)
Class E			(4	)		NA
Class I			(213	)		NA
Class Y			(21	)		(28	)
Realized gains on investment transactions:
Class A			(––	)		(5,577	)
Class B			(––	)		(387	)
Class C			(––	)		(669	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(38	)

			(4,301	)		(11,509	)

Capital share transactions (Note 5)			41,623			132,436

Total increase			56,283			151,078
NET ASSETS
Beginning of period			278,944			127,866

End of period		$	335,227		$	278,944

Undistributed net investment income		$	3,006		$	980

(1)See "Financial Highlights" on pages 140 - 145.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL BALANCED FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended September 30,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	16.81		$	15.15		$	14.63		$	13.07		$	11.33		$	8.72		$	9.28

Income (loss) from investment operations:
Net investment income			0.23			0.24	⁽¹⁾		0.29			0.22			0.09			0.21			0.18
Net realized and unrealized gain (loss) on investments			0.86			2.36	⁽¹⁾		1.14			1.69			1.83			2.40		(0.59		)

Total from investment operations			1.09			2.60			1.43			1.91			1.92			2.61		(0.41		)

Less distributions from:
Net investment income		(0.25		)	(0.43		)	(0.36		)	(0.28		)	(0.18		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(0.51		)	(0.55		)	(0.07		)	(0.00		)	(0.00		)	(0.13		)
Tax return of capital		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.02		)

Total distributions		(0.25		)	(0.94		)	(0.91		)	(0.35		)	(0.18		)	(0.00		)	(0.15		)

Net asset value, end of period		$	17.65		$	16.81		$	15.15		$	14.63		$	13.07		$	11.33		$	8.72

Total return⁽²⁾			6.53	%		17.48	%		10.14	%		14.81	%		17.05	%		29.93	%	-4.62		%
Net assets, end of period (in millions)		$258			$235			$112			$97			$60			$46			$36
Ratio of expenses to average net assets including reimbursement			1.31	%⁽³⁾		1.38	%		1.45	%		1.42	%		1.54	%⁽³⁾⁽⁴⁾		1.67	%		1.62	%
Ratio of net investment income to average net assets including reimbursement			2.69	%⁽³⁾		1.52	%		1.94	%		1.71	%		1.43	%⁽³⁾⁽⁴⁾		2.06	%		1.84	%
Ratio of expenses to average net assets excluding reimbursement			1.31	%⁽³⁾⁽⁵⁾		1.38	%⁽⁵⁾		1.45	%⁽⁵⁾		1.42	%⁽⁵⁾		1.60	%⁽³⁾⁽⁴⁾		1.71	%		1.72	%
Ratio of net investment income to average net assets excluding reimbursement			2.69	%⁽³⁾⁽⁵⁾		1.52	%⁽⁵⁾		1.94	%⁽⁵⁾		1.71	%⁽⁵⁾		1.37	%⁽³⁾⁽⁴⁾		2.02	%		1.74	%
Portfolio turnover rate			9	%		22	%		27	%		16	%		15	%		39	%		48	%

(1)Based on average weekly shares outstanding.

(2)Total return calculated without taking into account the sales load deducted on an initial purchase.

(3)Annualized.

(4)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that includes the effect of income and expenses for those Class B and Class C shares from October 1, 2003 up to the time of merger. Actual expenses that applied to Class A shareholders were lower than shown above.

(5)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL BALANCED FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended					For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07					2007			2006			2005			3-31-04

Net asset value, beginning of period		$	16.77			$	15.11		$	14.59		$	13.04			$	12.34

Income from investment operations:
Net investment income			0.18				0.07	⁽²⁾		0.08			0.03	⁽²⁾			0.19
Net realized and unrealized gain on investments			0.85				2.37	⁽²⁾		1.18			1.70	⁽²⁾			0.69

Total from investment operations			1.03				2.44			1.26			1.73				0.88

Less distributions from:
Net investment income			(0.21	)			(0.27	)		(0.19	)		(0.11	)			(0.18	)
Capital gains			(0.00	)			(0.51	)		(0.55	)		(0.07	)			(0.00	)

Total distributions			(0.21	)			(0.78	)		(0.74	)		(0.18	)			(0.18	)

Net asset value, end of period		$	17.59			$	16.77		$	15.11		$	14.59			$	13.04

Total return			5.94	%			16.38	%		8.93	%		13.37	%			7.18	%
Net assets, end of period (in thousands)	$13,720				$12,056				$5,548			$3,049				$225
Ratio of expenses to average net assets			2.29	%⁽³⁾			2.35	%		2.59	%		2.64	%			3.01	%⁽³⁾
Ratio of net investment income to average net assets			1.69	%⁽³⁾			0.46	%		0.73	%		0.20	%			1.09	%⁽³⁾
Portfolio turnover rate			9	%			22	%		27	%		16	%			15	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL BALANCED FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended					For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07					2007			2006			2005			3-31-04

Net asset value, beginning of period		$	16.78			$	15.12		$	14.60		$	13.04			$	12.34

Income from investment operations:
Net investment income			0.16				0.11	⁽²⁾		0.11			0.07	⁽²⁾			0.19
Net realized and unrealized gain on investments			0.86				2.37	⁽²⁾		1.19			1.69	⁽²⁾			0.69

Total from investment operations			1.02				2.48			1.30			1.76				0.88

Less distributions from:
Net investment income			(0.19	)			(0.31	)		(0.23	)		(0.13	)			(0.18	)
Capital gains			(0.00	)			(0.51	)		(0.55	)		(0.07	)			(0.00	)

Total distributions			(0.19	)			(0.82	)		(0.78	)		(0.20	)			(0.18	)

Net asset value, end of period		$	17.61			$	16.78		$	15.12		$	14.60			$	13.04

Total return			6.11	%			16.64	%		9.21	%		13.58	%			7.18	%
Net assets, end of period (in thousands)	$37,697				$29,921				$9,422			$3,968				$307
Ratio of expenses to average net assets			2.05	%⁽³⁾			2.12	%		2.29	%		2.44	%			2.86	%⁽³⁾
Ratio of net investment income to average net assets			1.91	%⁽³⁾			0.70	%		0.98	%		0.44	%			1.13	%⁽³⁾
Portfolio turnover rate			9	%			22	%		27	%		16	%			15	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL BALANCED FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	16.81

Income from investment operations:
Net investment income			0.11	⁽²⁾
Net realized and unrealized gain on investments			0.93	⁽²⁾

Total from investment operations			1.04

Less distributions from:
Net investment income			(0.24	)
Capital gains			(0.00	)

Total distributions			(0.24	)

Net asset value, end of period		$	17.61

Total return ⁽³⁾			6.03	%
Net assets, end of period (in thousands)		$451
Ratio of expenses to average net assets			2.03	%⁽⁴⁾
Ratio of net investment income to average net assets			1.54	%⁽⁴⁾
Portfolio turnover rate			9	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL BALANCED FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	16.82

Income from investment operations:
Net investment income			0.16	⁽²⁾
Net realized and unrealized gain on investments			0.97	⁽²⁾

Total from investment operations			1.13

Less distributions from:
Net investment income			(0.28	)
Capital gains			(0.00	)

Total distributions			(0.28	)

Net asset value, end of period		$	17.67

Total return			6.49	%
Net assets, end of period (in millions)		$24
Ratio of expenses to average net assets			0.99	%⁽³⁾
Ratio of net investment income to average net assets			2.33	%⁽³⁾
Portfolio turnover rate			9	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL BALANCED FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	16.82		$	15.15		$	14.63		$	13.07			$	12.34

Income from investment operations:
Net investment income			0.22			0.25	⁽²⁾		0.29	⁽²⁾		0.24	⁽²⁾			0.21
Net realized and unrealized gain on investments			0.87			2.37	⁽²⁾		1.14	⁽²⁾		1.67	⁽²⁾			0.70

Total from investment operations			1.09			2.62			1.43			1.91				0.91

Less distributions from:
Net investment income			(0.25	)		(0.44	)		(0.36	)		(0.28	)			(0.18	)
Capital gains			(0.00	)		(0.51	)		(0.55	)		(0.07	)			(0.00	)

Total distributions			(0.25	)		(0.95	)		(0.91	)		(0.35	)			(0.18	)

Net asset value, end of period		$	17.66		$	16.82		$	15.15		$	14.63			$	13.07

Total return			6.55	%		17.61	%		10.18	%		14.84	%			7.47	%
Net assets, end of period (in thousands)		$1,897			$1,665			$662			$397				$185
Ratio of expenses to average net assets			1.28	%⁽³⁾		1.24	%		1.41	%		1.40	%			1.79	%⁽³⁾
Ratio of net investment income to average net assets			2.49	%⁽³⁾		1.64	%		1.99	%		1.72	%			2.00	%⁽³⁾
Portfolio turnover rate			9	%		22	%		27	%		16	%			15	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended March 31, 2004.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY INTERNATIONAL CORE EQUITY FUND

Portfolio Highlights

On September 30, 2007, Ivy International Core Equity Fund had net assets totaling
$286,375,689 invested in a diversified portfolio of:

95.60%		Foreign Common Stocks
2.28%		Other Government Securities
1.21%		Cash and Cash Equivalents and Unrealized Gain on Open Forward Currency Contracts
0.91%		Domestic Common Stocks

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

Europe	$	66.84
United Kingdom	$	17.97
Switzerland	$	12.74
France	$	11.43
Germany	$	9.58
Other Europe ⁽¹⁾	$	7.71
Netherlands	$	3.96
Norway	$	3.45
Pacific Basin	$	29.11
Japan	$	14.74
Other Pacific Basin ⁽²⁾	$	5.86
Australia	$	4.59
China	$	3.92
Other ⁽³⁾	$	2.84
Cash and Cash Equivalents and Unrealized Gain on Open Forward Currency Contracts	$	1.21

(1)Includes $1.46 Greece, $2.39 Italy, $1.47 Spain and $2.39 Sweden.
(2)Includes $2.79 Hong Kong, $1.12 India and $1.95 Singapore.
(3)Includes $1.93 Brazil and $0.91 United States.

Sector Weightings

Capital Goods Stocks	$	17.50
Consumer Nondurables Stocks	$	15.07
Financial Services Stocks	$	12.25
Business Equipment and Services Stocks	$	8.53
Utilities Stocks	$	7.89
Raw Materials Stocks	$	5.16
Health Care Stocks	$	5.13
Energy Stocks	$	5.12
Consumer Durables Stocks	$	5.02
Miscellaneous Stocks	$	4.51
Technology Stocks	$	4.01
Multi-Industry Stocks	$	3.69
Transportation Stocks	$	2.63
Other Government Securities	$	2.28
Cash and Cash Equivalents and Unrealized Gain on Open Forward Currency Contracts	$	1.21

The Investments of Ivy International Core Equity Fund
September 30, 2007 (Unaudited)
COMMON STOCKS AND RIGHTS		Shares			Value


Australia - 4.59%
Foster's Group Limited (A)			569,110	$	3,297,651
Rio Tinto Limited (A)			72,390		6,951,547
Telstra Corporation Limited (A)			750,000		2,901,637
					13,150,835
Brazil - 1.93%
Petroleo Brasileiro S.A. - Petrobras, ADR			73,170		5,524,335

China - 3.92%
China Mobile Limited (A)			293,500		4,806,184
Qiao Xing Mobile Communication Co., Ltd.*			243,200		2,371,200
SINA Corporation*			84,750		4,057,830
					11,235,214
France - 11.43%
ALSTOM (A)			16,380		3,330,001
L'Oreal (A)			42,980		5,638,409
LVMH Moet Hennessy - Louis Vuitton (A)			35,090		4,206,557
TOTAL S.A. (A)			64,620		5,254,078
Technip-Coflexip (A)			39,820		3,560,173
VINCI (A)			45,230		3,533,705
Vallourec (A)			15,770		4,542,400
Vivendi Universal (A)			63,160		2,665,853
					32,731,176
Germany - 7.30%
Beiersdorf Aktiengesellschaft (A)			56,560		4,222,906
Commerzbank Aktiengesellschaft (A)			128,520		5,217,477
Deutsche Borse AG (A)			27,030		3,671,631
Fresenius AG (A)			45,220		3,507,776
Siemens AG (A)			31,130		4,272,501
					20,892,291
Greece - 1.46%
Alpha Bank (A)			120,300		4,192,462

Hong Kong - 2.79%
CNOOC Limited (A)	2,309,000				3,879,100
Cheung Kong (Holdings) Limited (A)			249,000		4,106,305
					7,985,405
India - 1.12%
Infosys Technologies Limited, ADR			66,320		3,207,567

Italy - 2.39%
Capitalia S.p.A. (A)			438,100		4,185,530
Capitalia S.p.A., Rights (A)*			261,020		1
Davide Campari - Milano S.p.A. (A)			258,300		2,651,913
					6,837,444
Japan - 14.74%
Chiyoda Corporation (A)			180,000		3,243,808
JGC Corporation (A)			167,000		3,220,346
Mitsubishi Electric Corporation (A)			507,000		6,355,983
Mitsui Fudosan Co., Ltd. (A)			109,000		3,027,119
Nintendo Co., Ltd. (A)			9,300		4,841,684
Nissin Kogyo Co., Ltd. (A)			117,900		3,397,458
Shin-Etsu Chemical Co., Ltd. (A)			46,800		3,235,032
Sumitomo Mitsui Financial Group, Inc. (A)			310		2,415,444
Suzuki Motor Corporation (A)			168,100		4,975,754
Toda Corporation (A)			561,000		2,959,701
Toyota Motor Corporation (A)			77,100		4,550,890
					42,223,219
Netherlands - 3.96%
Heineken N.V. (A)			108,900		7,146,228
TNT N.V. (A)			100,140		4,198,143
					11,344,371
Norway - 3.45%
Aker Kvaerner ASA (A)			167,640		5,340,537
Orkla ASA (A)			254,000		4,537,018
					9,877,555
Singapore - 1.95%
Singapore Telecommunications Limited (A)	2,065,000				5,588,219

Spain - 1.47%
Telefonica, S.A. (A)			150,450		4,211,287

Sweden - 2.39%
Atlas Copco AB, Class A, ADR (A)			179,160		3,099,943
Telefonaktiebolaget LM Ericsson, B Shares (A)			932,120		3,731,894
					6,831,837
Switzerland - 12.74%
Compagnie Financiere Richemont SA (A)			47,220		3,129,073
Holcim Ltd, Registered Shares (A)			35,900		3,965,420
Nestle S.A., Registered Shares (A)			18,930		8,503,663
Roche Holdings AG, Genussschein (A)			38,260		6,937,244
Swatch Group Ltd (The), Bearer Shares (A)			15,860		5,203,796
Syngenta AG (A)			21,280		4,587,743
Zurich Financial Services, Registered Shares (A)			13,860		4,157,702
					36,484,641
United Kingdom - 17.97%
BAE Systems plc (A)			667,050		6,735,191
BAE Systems plc (A)(B)			100,000		1,009,698
Barclays PLC (A)			325,070		3,960,618
British American Tobacco p.l.c. (A)			94,580		3,390,297
Delek Global Real Estate Limited (A)(B)*			451,984		1,451,868
Informa plc (A)			304,500		3,118,141
Intertek Group plc (A)			183,520		3,555,803
Prudential plc (A)			342,900		5,272,309
Serco Group plc (A)			352,090		2,989,552
Smith & Nephew plc (A)			348,870		4,264,871
Standard Chartered PLC (A)			173,810		5,689,827
Vodafone Group Plc (A)	1,411,129				5,095,839
WPP Group plc (A)			364,820		4,941,297
					51,475,311
United States - 0.91%
Comtech Group, Inc.*			143,150		2,607,477

TOTAL COMMON STOCKS AND RIGHTS - 96.51%				$	276,400,646

(Cost: $236,002,270)

OTHER GOVERNMENT SECURITIES - 2.28%		Principal Amount in Thousands


Germany
Bundesschatzanweisungen Federal Treasury Notes,
3.0%, 3-14-08 (C)	EUR 4,600		$	6,528,446
(Cost: $6,164,767)


UNREALIZED GAIN ON OPEN FORWARD CURRENCY CONTRACTS - 0.15%		Face Amount in Thousands


Australian Dollar, 8-27-08 (C)	AUD 4,600			309,322
Japanese Yen, 4-1-08 (C)	JPY 490,000			29,582
Swedish Krona, 3-17-08 (C)	SEK 17,274			89,912
			$	428,816

SHORT-TERM SECURITIES	Principal Amount in Thousands


Electrical Equipment - 0.70%
W.W. Grainger, Inc.,
4.78%, 10-24-07	$	2,000		1,993,892

Food and Related - 0.69%
Archer Daniels Midland Company,
5.1%, 11-6-07		2,000		1,989,800

Mining - 0.33%
BHP Billiton Finance (USA) Limited (BHP Billiton Limited),
5%, 10-1-07		934		934,000

TOTAL SHORT-TERM SECURITIES - 1.72%			$	4,917,692

(Cost: $4,917,692)

TOTAL INVESTMENT SECURITIES - 100.66%			$	288,275,600

(Cost: $247,084,729)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.66%)				(1,899,911	)


NET ASSETS - 100.00%			$	286,375,689

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. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amounted to $2,461,566 or 0.86% of net assets.

(C)Principal amounts are denominated in the indicated foreign currency, were applicable (AUD - Australian Dollar, EUR - Euro, JPY - Japanese Yen, SEK - Swedish Krona).

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY INTERNATIONAL CORE EQUITY FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (cost - $247,085) (Notes 1 and 3)	$	288,276
Cash denominated in foreign currencies (cost - $8,989)		9,071
Receivables:
Investment securities sold		13,433
Fund shares sold		1,455
Dividends and interest		823
Prepaid and other assets		49

Total assets		313,107

LIABILITIES
Payable for investment securities purchased		25,654
Payable to Fund shareholders		635
Accrued management fee (Note 2)		188
Accrued shareholder servicing (Note 2)		82
Accrued service fee (Note 2)		69
Accrued distribution fee (Note 2)		35
Accrued accounting services fee (Note 2)		6
Due to custodian		5
Accrued administrative fee (Note 2)		2
Other		55

Total liabilities		26,731

Total net assets	$	286,376

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	221,840
Accumulated undistributed income:
Accumulated undistributed net investment income		1,533
Accumulated undistributed net realized gain on investment transactions		21,786
Net unrealized appreciation in value of investments		41,217

Net assets applicable to outstanding units of capital	$	286,376

Net asset value per share (net assets divided by shares outstanding):
Class A	$20.02
Class B	$18.46
Class C	$18.45
Class E	$19.97
Class I	$20.16
Class Y	$20.13
Advisor Class	$19.89
Capital shares outstanding:
Class A		10,396
Class B		953
Class C		2,272
Class E		39
Class I		631
Class Y		257
Advisor Class		––	*

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      IVY INTERNATIONAL CORE EQUITY FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                             (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $327)	$	3,311
Interest and amortization		256

Total income		3,567

Expenses (Note 2):
Investment management fee		1,060
Shareholder servicing:
Class A		256
Class B		29
Class C		39
Class E		2
Class I		5
Class Y		3
Advisor Class		––	*
Service fee:
Class A		194
Class B		22
Class C		47
Class Y		5
Distribution fee:
Class A		35
Class B		65
Class C		142
Class E		1
Accounting services fee		36
Custodian fees		34
Audit fees		22
Administrative fee		13
Legal fees		2
Other		87

Total expenses		2,099

Net investment income		1,468

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		10,422
Realized net gain on foreign currency transactions		5

Realized net gain on investments		10,427
Unrealized appreciation in value of investments during the period		19,503

Net gain on investments		29,930

Net increase in net assets resulting from operations	$	31,398

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
IVY INTERNATIONAL CORE EQUITY FUND
(In Thousands) (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE IN NET ASSETS
Operations:
Net investment income		$	1,468		$	672
Realized net gain on investments			10,427			21,872
Unrealized appreciation			19,503			3,107

Net increase in net assets resulting from operations			31,398			25,651

Distributions to shareholders from (Note 1F): ⁽¹⁾
Net investment income:
Class A			(––	)		(435	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(7	)
Advisor Class			(––	)		(––	)*
Realized gains on investment transactions:
Class A			(––	)		(5,291	)
Class B			(––	)		(666	)
Class C			(––	)		(1,213	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(77	)
Advisor Class			(––	)		(––	)*

			(––	)		(7,689	)

Capital share transactions (Note 5)			39,543			99,073

Total increase			70,941			117,035
NET ASSETS
Beginning of period			215,435			98,400

End of period		$	286,376		$	215,435

Undistributed net investment income		$	1,533		$	60

*Not shown due to rounding.
(1)See "Financial Highlights" on pages 155 - 161.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL CORE EQUITY FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003				2002

Net asset value, beginning of period		$	17.63		$	15.73		$	11.61		$	10.14		$	9.73		$	7.65			$	9.10

Income (loss) from investment operations:
Net investment income (loss)			0.11			0.10	⁽¹⁾		(0.06	)		(0.02	)		(0.01	)	(0.02		)			0.08	⁽¹⁾
Net realized and unrealized gain (loss) on investments			2.28			2.59	⁽¹⁾		4.18			1.49			0.42			2.10			(1.53		)⁽¹⁾

Total from investment operations			2.39			2.69			4.12			1.47			0.41			2.08			(1.45		)

Less distributions from:
Net investment income		(0.00		)	(0.06		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.73		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Total distributions		(0.00		)	(0.79		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Net asset value, end of period		$	20.02		$	17.63		$	15.73		$	11.61		$	10.14		$	9.73			$	7.65

Total return⁽³⁾			13.61	%		17.35	%		35.49	%		14.50	%		4.21	%	27.19		%	-15.93			%⁽²⁾
Net assets, end of period (in millions)		$208			$161			$67			$17			$10			$9				$8
Ratio of expenses to average net assets including reimbursement			1.54	%⁽⁴⁾		1.56	%		1.82	%		1.99	%		2.16	%⁽⁴⁾		2.28	%			1.77	%
Ratio of net investment income (loss) to average net assets including reimbursement			1.34	%⁽⁴⁾		0.63	%		0.14	%		0.09	%		-0.41	%⁽⁴⁾	-0.19		%			0.91	%
Ratio of expenses to average net assets excluding reimbursement			1.54	%⁽⁴⁾⁽⁵⁾		1.56	%⁽⁵⁾		1.82	%⁽⁵⁾		1.99	%⁽⁵⁾		2.16	%⁽⁴⁾⁽⁵⁾		2.28	%⁽⁵⁾			2.32	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			1.34	%⁽⁴⁾⁽⁵⁾		0.63	%⁽⁵⁾		0.14	%⁽⁵⁾		0.09	%⁽⁵⁾		-0.41	%⁽⁴⁾⁽⁵⁾	-0.19		%⁽⁵⁾			0.36	%
Portfolio turnover rate			56	%		108	%		90	%		106	%		23	%		148	%			48	%

(1)Based on average weekly shares outstanding.

(2)Includes redemption fees added to capital.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL CORE EQUITY FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003				2002

Net asset value, beginning of period		$	16.31		$	14.67		$	10.91		$	9.60		$	9.24		$	7.32			$	8.97

Income (loss) from investment operations:
Net investment income (loss)			0.04			(0.00	)⁽¹⁾		(0.12	)		(0.08	)	(0.03		)	(0.08		)			0.01	⁽¹⁾
Net realized and unrealized gain (loss) on investments			2.11			2.37	⁽¹⁾		3.88			1.39			0.39			2.00			(1.66		)⁽¹⁾

Total from investment operations			2.15			2.37			3.76			1.31			0.36			1.92			(1.65		)

Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.73		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Total distributions		(0.00		)	(0.73		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Net asset value, end of period		$	18.46		$	16.31		$	14.67		$	10.91		$	9.60		$	9.24			$	7.32

Total return			13.18	%		16.39	%		34.46	%		13.65	%		3.90	%	26.23		%	-18.39			%
Net assets, end of period (in millions)		$18			$17			$15			$20			$24			$25				$28
Ratio of expenses to average net assets including reimbursement			2.35	%⁽²⁾		2.35	%		2.62	%		2.76	%		2.91	%⁽²⁾		2.95	%			2.50	%
Ratio of net investment income (loss) to average net assets including reimbursement			0.62	%⁽²⁾		-0.03	%		-0.41	%		-0.58	%	-1.20		%⁽²⁾	-0.82		%			0.18	%
Ratio of expenses to average net assets excluding reimbursement			2.35	%⁽²⁾⁽³⁾		2.35	%⁽³⁾		2.62	%⁽³⁾		2.76	%⁽³⁾		2.91	%⁽²⁾⁽³⁾		2.95	%⁽³⁾			3.05	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			0.62	%⁽²⁾⁽³⁾		-0.03	%⁽³⁾		-0.41	%⁽³⁾		-0.58	%⁽³⁾	-1.20		%⁽²⁾⁽³⁾	-0.82		%⁽³⁾		-0.37		%
Portfolio turnover rate			56	%		108	%		90	%		106	%		23	%		148	%			48	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL CORE EQUITY FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003				2002

Net asset value, beginning of period		$	16.30		$	14.65		$	10.90		$	9.59		$	9.23		$	7.32			$	8.97

Income (loss) from
investment operations:
Net investment income (loss)			0.06			(0.01	)⁽¹⁾		(0.02	)		(0.07	)	(0.03		)	(0.08		)			0.01	⁽¹⁾
Net realized and unrealized gain (loss) on investments			2.09			2.39	⁽¹⁾		3.77			1.38			0.39			1.99			(1.66		)⁽¹⁾

Total from investment operations			2.15			2.38			3.75			1.31			0.36			1.91			(1.65		)

Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.73		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Total distributions		(0.00		)	(0.73		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Net asset value, end of period		$	18.45		$	16.30		$	14.65		$	10.90		$	9.59		$	9.23			$	7.32

Total return			13.25	%		16.48	%		34.40	%		13.66	%		3.90	%	26.09		%	-18.39			%
Net assets, end of period (in millions)		$42			$34			$15			$7			$8			$8				$9
Ratio of expenses to average net assets including reimbursement			2.21	%⁽²⁾		2.29	%		2.58	%		2.79	%		3.01	%⁽²⁾		3.01	%			2.50	%
Ratio of net investment income (loss) to average net assets including reimbursement			0.67	%⁽²⁾		-0.08	%		-0.50	%		-0.63	%	-1.30		%⁽²⁾	-0.82		%			0.18	%
Ratio of expenses to average net assets excluding reimbursement			2.21	%⁽²⁾⁽³⁾		2.29	%⁽³⁾		2.58	%⁽³⁾		2.79	%⁽³⁾		3.01	%⁽²⁾⁽³⁾		3.01	%⁽³⁾			3.05	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			0.67	%⁽²⁾⁽³⁾		-0.08	%⁽³⁾		-0.50	%⁽³⁾		-0.63	%⁽³⁾	-1.30		%⁽²⁾⁽³⁾	-0.82		%⁽³⁾		-0.37		%
Portfolio turnover rate			56	%		108	%		90	%		106	%		23	%		148	%			48	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL CORE EQUITY FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	17.63

Income (loss) from investment operations:
Net investment loss			(0.01	)⁽²⁾
Net realized and unrealized gain on investments			2.35	⁽²⁾

Total from investment operations			2.34

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	19.97

Total return ⁽³⁾			13.33	%
Net assets, end of period (in thousands)		$790
Ratio of expenses to average net assets			2.33	%⁽⁴⁾
Ratio of net investment loss to average net assets			-0.03	%⁽⁴⁾
Portfolio turnover rate			56	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL CORE EQUITY FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	17.71

Income from investment operations:
Net investment income			0.09	⁽²⁾
Net realized and unrealized gain on investments			2.36	⁽²⁾

Total from investment operations			2.45

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	20.16

Total return			13.83	%
Net assets, end of period (in millions)		$13
Ratio of expenses to average net assets			1.16	%⁽³⁾
Ratio of net investment income to average net assets			0.96	%⁽³⁾
Portfolio turnover rate			56	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL CORE EQUITY FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the period from 7-24-03⁽¹⁾to
	9-30-07				2007			2006			2005		3-31-04				12-31-03

Net asset value, beginning of period		$	17.70		$	15.79		$	11.64		$	10.15		$	9.74			$	8.16

Income (loss) from investment operations:
Net investment income (loss)			0.11			0.12	⁽²⁾		(0.06	)		(0.01	)		(0.01	)		(0.01		)
Net realized and unrealized gain on investments			2.32			2.59	⁽²⁾		4.21			1.50			0.42				1.59

Total from investment operations			2.43			2.71			4.15			1.49			0.41				1.58

Less distributions from:
Net investment income		(0.00		)	(0.07		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.73		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Total distributions		(0.00		)	(0.80		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Net asset value, end of period		$	20.13		$	17.70		$	15.79		$	11.64		$	10.15			$	9.74

Total return			13.66	%		17.47	%		35.65	%		14.68	%		4.21	%		19.36		%
Net assets, end of period (in thousands)		$5,177			$3,848			$1,025			$294			$145				$125
Ratio of expenses to average net assets			1.41	%⁽³⁾		1.45	%		1.72	%		1.82	%		2.08	%⁽³⁾			1.47	%⁽³⁾
Ratio of net investment income (loss) to average net assets			1.39	%⁽³⁾		0.76	%		0.13	%		0.29	%		-0.31	%⁽³⁾		-0.38		%⁽³⁾
Portfolio turnover rate			56	%		108	%		90	%		106	%		23	%			148	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the 12 months ended December 31, 2003.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL CORE EQUITY FUND
      Advisor Class Shares ⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003				2002

Net asset value, beginning of period		$	17.54		$	15.65		$	11.52		$	10.04		$	9.63		$	7.54			$	9.14

Income (loss) from investment operations:
Net investment income (loss)			0.10			0.14			0.14	⁽²⁾		0.03	⁽²⁾		(0.00	)		0.67				0.10	⁽²⁾
Net realized and unrealized gain (loss) on investments			2.25			2.56			3.99	⁽²⁾		1.45	⁽²⁾		0.41			1.42			(1.70		)⁽²⁾

Total from investment operations			2.35			2.70			4.13			1.48			0.41			2.09			(1.60		)

Less distributions from:
Net investment income		(0.00		)	(0.08		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.73		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Total distributions		(0.00		)	(0.81		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Net asset value, end of period		$	19.89		$	17.54		$	15.65		$	11.52		$	10.04		$	9.63			$	7.54

Total return			13.40	%		17.48	%		35.85	%		14.74	%		4.26	%	27.72		%	-17.51			%
Net assets, end of period (in thousands)		$1			$1			$1			$31			$41			$39				$124
Ratio of expenses to average net assets including reimbursement			1.82	%⁽³⁾		1.47	%		1.84	%		1.91	%		1.62	%⁽³⁾		2.59	%			1.50	%
Ratio of net investment income to average net assets including reimbursement			1.09	%⁽³⁾		0.85	%		1.15	%		0.29	%		0.11	%⁽³⁾		1.43	%			1.18	%
Ratio of expenses to average net assets excluding reimbursement			1.82	%⁽³⁾⁽⁴⁾		2.48	%		1.84	%⁽⁴⁾		1.91	%⁽⁴⁾		1.62	%⁽³⁾⁽⁴⁾		2.59	%⁽⁴⁾			2.05	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			1.09	%⁽³⁾⁽⁴⁾		-0.16	%		1.15	%⁽⁴⁾		0.29	%⁽⁴⁾		0.11	%⁽³⁾⁽⁴⁾		1.43	%⁽⁴⁾			0.63	%
Portfolio turnover rate			56	%		108	%		90	%		106	%		23	%		148	%			48	%

(1)See Note 5 to financial statements.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)There was no waiver of expenses during the period.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY INTERNATIONAL GROWTH FUND

Portfolio Highlights

On September 30, 2007, Ivy International Growth Fund had net assets totaling
$269,842,322 invested in a diversified portfolio of:

93.42%		Foreign Common Stocks
4.04%		Domestic Common Stocks
2.54%		Cash and Cash Equivalents

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

Europe	$	65.48
Germany	$	16.67
United Kingdom	$	13.94
Switzerland	$	12.20
France	$	9.05
Other Europe ⁽¹⁾	$	6.05
Greece	$	3.84
Italy	$	3.73
Pacific Basin	$	23.30
Japan	$	13.85
Other Pacific Basin ⁽²⁾	$	5.50
China	$	3.95
North America	$	5.02
United States	$	4.04
Other North America ⁽³⁾	$	0.98
Cash and Cash Equivalents	$	2.54
Bahamas/Caribbean ⁽⁴⁾	$	2.52
Other ⁽⁵⁾	$	1.14

(1)Includes $1.01 Belgium, $2.03 Finland, $0.94 Ireland, $ 1.06 Norway and $1.01 Sweden.
(2)Includes $2.14 Australia, $1.79 Hong Kong, $0.59 India and $0.98 South Korea.
(3)Includes $0.98 Canada.
(4)Includes $1.35 Bermuda and $1.17 Cayman Islands.
(5)Includes $1.14 South America.

Sector Weightings

Capital Goods Stocks	$	18.10
Consumer Nondurables Stocks	$	13.16
Financial Services Stocks	$	12.01
Raw Materials Stocks	$	8.50
Consumer Durables Stocks	$	8.24
Technology Stocks	$	5.46
Business Equipment and Services Stocks	$	5.33
Health Care Stocks	$	5.32
Utilities Stocks	$	4.88
Multi-Industry Stocks	$	4.54
Retail Stocks	$	4.29
Energy Stocks	$	3.98
Miscellaneous Stocks	$	3.65
Cash and Cash Equivalents	$	2.54

The Investments of Ivy International Growth Fund
September 30, 2007 (Unaudited)
COMMON STOCKS		Shares			Value


Australia - 2.14%
Boart Longyear Limited (A)(B)*	1,545,000			$	3,262,878
Novogen LTD (A)*			474,580		791,704
Rio Tinto Limited (A)			18,000		1,728,524
					5,783,106
Belgium - 1.01%
InBev NV (A)			30,000		2,718,989

Bermuda - 1.35%
Esprit Holdings Limited (A)			230,000		3,653,917

Brazil - 1.14%
Petroleo Brasileiro S.A. - Petrobras, ADR			40,600		3,065,300

Canada - 0.98%
Shoppers Drug Mart Corporation (A)(B)			48,450		2,648,883

Cayman Islands - 1.17%
Agile Property Holdings Limited (A)	1,500,000				3,149,019

China - 3.95%
China Mobile Limited (A)			378,000		6,189,906
Qiao Xing Mobile Communication Co., Ltd.*			115,500		1,126,125
SINA Corporation*			70,000		3,351,600
					10,667,631
Finland - 2.03%
Fortum Oyj (A)			72,000		2,642,673
Nokia OYJ (A)			75,000		2,851,174
					5,493,847
France - 9.05%
ALSTOM (A)			8,300		1,687,363
LVMH Moet Hennessy - Louis Vuitton (A)			22,000		2,637,340
Pernod Ricard (A)			11,520		2,513,804
SR.Teleperformance (A)(B)			46,666		1,818,622
TOTAL S.A. (A)			51,000		4,146,673
Technip-Coflexip (A)			30,000		2,682,200
VINCI (A)			87,000		6,797,088
Vallourec (A)			7,400		2,131,501
					24,414,591
Germany - 16.67%
Allianz Aktiengesellschaft, Registered Shares (A)			21,000		4,906,458
Arcandor AG (A)*			50,000		1,661,937
Bayer Aktiengesellschaft (A)			75,000		5,956,879
Beiersdorf Aktiengesellschaft (A)			30,000		2,239,872
Commerzbank Aktiengesellschaft (A)			50,000		2,029,831
Deutsche Borse AG (A)			53,200		7,226,443
E.ON AG (A)			17,600		3,248,254
elexis AG (A)			48,000		1,392,862
Fresenius AG (A)			45,000		3,490,710
Siemens AG (A)			38,600		5,297,737
Vossloh AG (A)			21,450		2,307,445
Wacker Chemie AG (A)			12,000		2,823,368
Wacker Construction Equipment AG (A)*			36,000		1,012,819
Wacker Construction Equipment AG (A)(B)*			49,500		1,392,626
					44,987,241
Greece - 3.84%
Bank of Cyprus Limited (A)			206,000		3,636,555
Hellenic Exchanges Holding S.A. (A)			100,000		3,208,373
National Bank of Greece S.A. (A)			20,000		1,274,794
Piraeus Bank S.A. (A)			62,500		2,233,384
					10,353,106
Hong Kong - 1.79%
CNOOC Limited (A)	2,100,000				3,527,982
Hutchison Whampoa Limited, Ordinary Shares (A)			121,000		1,294,230
					4,822,212
India - 0.59%
ICICI Bank Limited, ADR			30,000		1,581,600

Ireland - 0.94%
CRH public limited company (A)			64,700		2,550,026

Italy - 3.73%
DiaSorin S.p.A. (A)(B)*			60,000		1,103,680
Finmeccanica SpA (A)			60,000		1,747,922
Saipem S.p.A. (A)			89,000		3,797,117
UniCredito Italiano S.p.A. (A)			400,001		3,422,273
					10,070,992
Japan - 13.85%
Astellas Pharma Inc. (A)			28,000		1,343,142
Canon Inc. (A)			79,200		4,323,197
Hokuhoku Financial Group, Inc. (A)			400,000		1,131,763
Hoya Corporation (A)			86,000		2,934,924
Japan Tobacco Inc. (A)			550		3,021,373
Makita Corporation (A)			70,000		3,071,432
Mitsubishi Electric Corporation (A)			235,000		2,946,067
Mitsubishi Estate Co., Ltd. (A)			120,000		3,437,078
Nintendo Co., Ltd. (A)			10,200		5,310,234
Shin-Etsu Chemical Co., Ltd. (A)			42,000		2,903,234
Suzuki Motor Corporation (A)			45,000		1,331,998
Toyota Motor Corporation (A)			80,000		4,722,065
YAMADA-DENKI Co., Ltd. (A)			9,000		890,872
					37,367,379
Norway - 1.06%
Aker Kvaerner ASA (A)			90,000		2,867,146

South Korea - 0.98%
Samsung Electronics Co., Ltd. (A)			4,200		2,638,767

Sweden - 1.01%
H & M Hennes & Mauritz AB (A)			42,900		2,719,488

Switzerland - 12.20%
ABB Ltd (A)			120,000		3,160,146
Compagnie Financiere Richemont SA (A)			47,550		3,150,941
Holcim Ltd, Registered Shares (A)			35,300		3,899,145
Julius Baer Holding Ltd., Bearer Shares (A)			38,000		2,841,228
Nestle S.A., Registered Shares (A)			13,000		5,839,811
Nobel Biocare Holding AG (A)			9,000		2,436,977
Roche Holdings AG, Genussschein (A)			28,500		5,167,576
Swatch Group Ltd (The), Bearer Shares (A)			8,200		2,690,487
Syngenta AG (A)			5,100		1,099,506
UBS AG (A)			49,000		2,634,657
					32,920,474
United Kingdom - 13.94%
BAE Systems plc (A)			451,000		4,553,738
BHP Billiton Plc (A)			144,000		5,155,905
British American Tobacco p.l.c. (A)			177,000		6,344,709
Diageo plc (A)			85,000		1,867,788
IG Group Holdings plc (A)(B)			272,000		2,107,783
Informa plc (A)			155,000		1,587,231
Intertek Group plc (A)			145,000		2,809,457
Reckitt Benckiser plc (A)			87,500		5,141,583
Safestore Holdings Limited (A)(B)			205,000		772,797
Serco Group plc (A)			150,000		1,273,631
Standard Chartered PLC (A)			42,500		1,391,276
Tanfield Group PLC (A)*	1,000,000				3,539,570
Vodafone Group Plc (A)			300,000		1,083,354
					37,628,822
United States - 4.04%
Research In Motion Limited*			110,550		10,892,491

TOTAL COMMON STOCKS - 97.46%				$	262,995,027

(Cost: $188,110,051)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Finance Companies - 1.48%
Prudential Funding LLC,
5.23%, 10-5-07	$	4,000		3,997,675

Mining - 0.96%
BHP Billiton Finance (USA) Limited (BHP Billiton Limited),
5.0%, 10-1-07		2,592		2,592,000

TOTAL SHORT-TERM SECURITIES - 2.44%			$	6,589,675

(Cost: $6,589,675)

TOTAL INVESTMENT SECURITIES - 99.90%			$	269,584,702

(Cost: $194,699,726)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.10%				257,620


NET ASSETS - 100.00%			$	269,842,322

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. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amounted to $13,107,269 or 4.86% of net assets.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY INTERNATIONAL GROWTH FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                         (Unaudited)

ASSETS
Investment securities - at value (cost - $194,700) (Notes 1 and 3)	$	269,585
Receivables:
Dividends and interest		892
Fund shares sold		321
Prepaid and other assets		44

Total assets		270,842

LIABILITIES
Payable to Fund shareholders		320
Accrued management fee (Note 2)		179
Due to custodian		165
Accrued service fee (Note 2)		102
Accrued shareholder servicing (Note 2)		81
Accrued distribution fee (Note 2)		43
Accrued accounting services fee (Note 2)		6
Accrued administrative fee (Note 2)		2
Other		102

Total liabilities		1,000

Total net assets	$	269,842

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	446,552
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		911
Accumulated undistributed net realized loss on investment transactions	(252,571		)
Net unrealized appreciation in value of investments		74,950

Net assets applicable to outstanding units of capital	$	269,842

Net asset value per share (net assets divided by shares outstanding):
Class A	$40.01
Class B	$36.56
Class C	$36.48
Class E	$40.04
Class I	$40.39
Class Y	$39.99
Advisor Class	$37.18
Class II	$40.46
Capital shares outstanding:
Class A		4,441
Class B		330
Class C		1,682
Class E		3
Class I		356
Class Y		99
Advisor Class		––	*
Class II		7

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      IVY INTERNATIONAL GROWTH FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                             (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $280)	$	2,661
Interest and amortization		176

Total income		2,837

Expenses (Note 2):
Investment management fee		1,063
Shareholder servicing:
Class A		185
Class B		27
Class C		128
Class E		––	*
Class I		5
Class Y		4
Advisor Class		––	*
Class II		––	*
Distribution fee:
Class A		14
Class B		44
Class C		218
Class E		––	*
Service fee:
Class A		176
Class B		15
Class C		73
Class Y		5
Custodian fees		65
Accounting services fee		37
Audit fees		23
Administrative fee		13
Other		66

Total expenses		2,161

Net investment income		676

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		18,900
Realized net loss on foreign currency transactions		(16	)

Realized net gain on investments		18,884
Unrealized appreciation in value of investments during the period		16,862

Net gain on investments		35,746

Net increase in net assets resulting from operations	$	36,422

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY INTERNATIONAL GROWTH FUND
      (In Thousands)                                                                                                                (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE IN NET ASSETS
Operations:
Net investment income		$	676		$	535
Realized net gain on investments			18,884			34,584
Unrealized appreciation (depreciation)			16,862			(1,366	)

Net increase in net assets resulting from operations			36,422			33,753

Distributions to shareholders from (Note 1F): ⁽¹⁾
Net investment income:
Class A			(––	)		(236	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(8	)
Advisor Class			(––	)		(––	)
Class II			(––	)		(1	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(––	)
Advisor Class			(––	)		(––	)
Class II			(––	)		(––	)

			(––	)		(245	)

Capital share transactions (Note 5)			(4,813	)		(26,372	)

Total increase			31,609			7,136
NET ASSETS
Beginning of period			238,233			231,097

End of period		$	269,842		$	238,233

Undistributed net investment income		$	911		$	251

(1)See "Financial Highlights" on pages 171 - 178.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL GROWTH FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005			3-31-04				2003			2002

Net asset value, beginning of period		$	34.60		$	29.74		$	22.86		$	21.34			$	20.64		$	16.35		$	20.69

Income (loss) from investment operations:
Net investment income (loss)			0.18			0.19			0.08		(0.02		)		(0.01		)	(0.02		)		0.06	⁽¹⁾
Net realized and unrealized gain (loss) on investments			5.23			4.72			6.97			1.54				0.71			4.31		(4.40		)⁽¹⁾

Total from investment operations			5.41			4.91			7.05			1.52				0.70			4.29		(4.34		)

Less distributions from:
Net investment income		(0.00		)	(0.05		)	(0.17		)	(0.00		)		(0.00		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)	(0.00		)	(0.00		)

Total distributions		(0.00		)	(0.05		)	(0.17		)	(0.00		)		(0.00		)	(0.00		)	(0.00		)

Net asset value, end of period		$	40.01		$	34.60		$	29.74		$	22.86			$	21.34		$	20.64		$	16.35

Total return⁽²⁾			15.64	%		16.51	%		30.92	%		7.12	%			3.39	%		26.24	%	-20.96		%
Net assets, end of period (in millions)		$178			$165			$156			$122				$125			$124			$127
Ratio of expenses to average net assets			1.45	%⁽³⁾		1.46	%		1.59	%		1.61	%			1.69	%⁽³⁾		1.81	%		1.89	%
Ratio of net investment income (loss) to average net assets			0.83	%⁽³⁾		0.55	%		0.25	%		-0.15	%			-0.26	%⁽³⁾		-0.07	%		0.32	%
Portfolio turnover rate			50	%		97	%		75	%		76	%			27	%		136	%		34	%

(1)Based on average weekly shares outstanding.

(2)Total return calculated without taking into account the sales load deducted on an initial purchase.

(3)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL GROWTH FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005			3-31-04				2003			2002

Net asset value, beginning of period		$	31.79		$	27.58		$	21.30		$	20.12			$	19.52		$	15.62		$	20.03

Income (loss) from investment operations:
Net investment loss			(0.03	)⁽¹⁾		(0.15	)		(0.17	)⁽¹⁾		(0.22	)⁽¹⁾			(0.07	)		(0.23	)		(0.12	)⁽¹⁾
Net realized and unrealized gain (loss) on investments			4.80	⁽¹⁾		4.36			6.45	⁽¹⁾		1.40	⁽¹⁾			0.67			4.13			(4.29	)⁽¹⁾

Total from investment operations			4.77			4.21			6.28			1.18				0.60			3.90			(4.41	)

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)

Net asset value, end of period		$	36.56		$	31.79		$	27.58		$	21.30			$	20.12		$	19.52		$	15.62

Total return			15.07	%		15.23	%		29.48	%		5.87	%			3.08	%		24.97	%	-22.00		%
Net assets, end of period (in millions)		$12			$11			$13			$17				$49			$55			$68
Ratio of expenses to average net assets			2.49	%⁽²⁾		2.55	%		2.74	%		2.75	%			2.75	%⁽²⁾		2.84	%		2.85	%
Ratio of net investment loss to average net assets			-0.21	%⁽²⁾		-0.53	%		-0.72	%		-1.09	%			-1.35	%⁽²⁾		-1.06	%		-0.64	%
Portfolio turnover rate			50	%		97	%		75	%		76	%			27	%		136	%		34	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL GROWTH FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005			3-31-04				2003			2002

Net asset value, beginning of period		$	31.71		$	27.52		$	21.20		$	20.00			$	19.39		$	15.52		$	19.90

Income (loss) from investment operations:
Net investment loss			(0.04	)		(0.15	)		(0.09	)⁽¹⁾		(0.32	)			(0.07	)		(0.20	)		(0.11	)⁽¹⁾
Net realized and unrealized gain (loss) on investments			4.81			4.34			6.41	⁽¹⁾		1.52				0.68			4.07			(4.27	)⁽¹⁾

Total from investment operations			4.77			4.19			6.32			1.20				0.61			3.87			(4.38	)

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)

Net asset value, end of period		$	36.48		$	31.71		$	27.52		$	21.20			$	20.00		$	19.39		$	15.52

Total return			15.08	%		15.23	%		29.81	%		6.00	%			3.15	%		24.94	%	-22.00		%
Net assets, end of period (in millions)		$62			$57			$56			$9				$11			$12			$14
Ratio of expenses to average net assets			2.47	%⁽²⁾		2.54	%		2.43	%		2.64	%			2.67	%⁽²⁾		2.80	%		2.83	%
Ratio of net investment loss to average net assets			-0.20	%⁽²⁾		-0.53	%		-0.39	%		-1.14	%			-1.25	%⁽²⁾		-0.94	%		-0.62	%
Portfolio turnover rate			50	%		97	%		75	%		76	%			27	%		136	%		34	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL GROWTH FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	34.60

Income from investment operations:
Net investment income			0.19	⁽²⁾
Net realized and unrealized gain on investments			5.25	⁽²⁾

Total from investment operations			5.44

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	40.04

Total return ⁽³⁾			15.92	%
Net assets, end of period (in thousands)		$116
Ratio of expenses to average net assets			1.30	%⁽⁴⁾
Ratio of net investment income to average net assets			0.99	%⁽⁴⁾
Portfolio turnover rate			50	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL GROWTH FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	34.59

Income from investment operations:
Net investment income			0.12	⁽²⁾
Net realized and unrealized gain on investments			5.68	⁽²⁾

Total from investment operations			5.80

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	40.39

Total return			17.01	%
Net assets, end of period (in millions)		$14
Ratio of expenses to average net assets			1.18	%⁽³⁾
Ratio of net investment income to average net assets			0.64	%⁽³⁾
Portfolio turnover rate			50	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL GROWTH FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the period from 7-24-03⁽¹⁾ to
	9-30-07				2007			2006			2005		3-31-04				12-31-03

Net asset value, beginning of period		$	34.59		$	29.74		$	22.86		$	21.35		$	20.65		$	17.69

Income (loss) from investment operations:
Net investment income (loss)			0.15	⁽²⁾		0.28			0.18	⁽²⁾		(0.09	)		(0.02	)		0.02
Net realized and unrealized gain on investments			5.25	⁽²⁾		4.63			6.87	⁽²⁾		1.60			0.72			2.94

Total from investment operations			5.40			4.91			7.05			1.51			0.70			2.96

Less distributions from:
Net investment income			(0.00	)		(0.06	)		(0.17	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.00	)		(0.06	)		(0.17	)		(0.00	)		(0.00	)		(0.00	)

Net asset value, end of period		$	39.99		$	34.59		$	29.74		$	22.86		$	21.35		$	20.65

Total return			15.64	%		16.50	%		30.95	%		7.07	%		3.39	%		16.73	%
Net assets, end of period (in thousands)		$3,967			$4,960			$6,144			$229			$140			$135
Ratio of expenses to average net assets			1.46	%⁽³⁾		1.46	%		1.58	%		1.66	%		1.76	%⁽³⁾		0.59	%⁽³⁾
Ratio of net investment income (loss) to average net assets			0.80	%⁽³⁾		0.65	%		0.81	%		-0.33	%		-0.32	%⁽³⁾		0.24	%⁽³⁾
Portfolio turnover rate			50	%		97	%		75	%		76	%		27	%		136	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the 12 months ended December 31, 2003.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL GROWTH FUND
      Advisor Class Shares ⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005			3-31-04				2003			2002⁽²⁾

Net asset value, beginning of period		$	32.66		$	28.96		$	22.84		$	21.66			$	21.00		$	16.85		$	20.67

Income (loss) from investment operations:
Net investment loss			(0.38	)		(0.79	)		(0.75	)		(0.38	)			(0.08	)		(1.00	)		(0.24	)
Net realized and unrealized gain (loss) on investments			4.90			4.49			6.87			1.56				0.74			5.15			(3.58	)

Total from investment operations			4.52			3.70			6.12			1.18				0.66			4.15			(3.82	)

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)

Net asset value, end of period		$	37.18		$	32.66		$	28.96		$	22.84			$	21.66		$	21.00		$	16.85

Total return			13.84	%		12.81	%		26.80	%		5.45	%			3.14	%		25.00	%	-18.71		%
Net assets, end of period (in thousands)		$1			$1			$1			$1				$1			$1			$2
Ratio of expenses to average net assets			4.57	%⁽³⁾		4.66	%		4.71	%		3.11	%			2.35	%⁽³⁾		2.72	%		3.46	%
Ratio of net investment loss to average net assets			-2.20	%⁽³⁾		-2.68	%		-3.03	%		-1.75	%			-1.58	%⁽³⁾		-0.98	%		-1.24	%
Portfolio turnover rate			50	%		97	%		75	%		76	%			27	%		136	%		34	%

(1)See Note 5 to financial statements.

(2)Advisor Class Shares were outstanding for the period from 1-1-02 through 6-11-02 and from 7-3-02 through 12-31-02.

(3)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL GROWTH FUND
      Class II Shares ⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005			3-31-04				2003			2002

Net asset value, beginning of period		$	34.98		$	30.07		$	23.13		$	21.58			$	20.86		$	16.48		$	20.85

Income (loss) from investment operations:
Net investment income (loss)			0.40			0.39			0.15	⁽²⁾		0.29				(0.00	)		(0.08	)		0.14	⁽²⁾
Net realized and unrealized gain (loss) on investments			5.08			4.66			7.02	⁽²⁾		1.26				0.72			4.46			(4.51	)⁽²⁾

Total from investment operations			5.48			5.05			7.17			1.55				0.72			4.38			(4.37	)

Less distributions from:
Net investment income			(0.00	)		(0.14	)		(0.23	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)

Total distributions			(0.00	)		(0.14	)		(0.23	)		(0.00	)			(0.00	)		(0.00	)		(0.00	)

Net asset value, end of period		$	40.46		$	34.98		$	30.07		$	23.13			$	21.58		$	20.86		$	16.48

Total return			15.70	%		16.83	%		31.12	%		7.18	%			3.45	%		26.58	%	-20.95		%
Net assets, end of period (in thousands)		$302			$303			$299			$345				$669			$684			$1,304
Ratio of expenses to average net assets			1.20	%⁽³⁾		1.20	%		1.39	%		1.47	%			1.38	%⁽³⁾		1.66	%		1.51	%
Ratio of net investment income to average net assets			1.13	%⁽³⁾		0.81	%		0.51	%		0.20	%			0.04	%⁽³⁾		0.06	%		0.70	%
Portfolio turnover rate			50	%		97	%		75	%		76	%			27	%		136	%		34	%

(1)See Note 5 to financial statements.

(2)Based on average weekly shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY MANAGED EUROPEAN/PACIFIC FUND

Portfolio Highlights

As a shareholder of Ivy Managed European/Pacific Fund, for every $100 you had invested on
September 30, 2007, your Fund owned:


Ivy European Opportunities Fund, Class I	$	56.08
Ivy Pacific Opportunities Fund, Class I	$	43.55
Cash and Cash Equivalents	$	0.37

The Investments of Ivy Managed European/Pacific Fund
September 30, 2007 (Unaudited)
AFFILIATED MUTUAL FUNDS	Shares			Value


Ivy European Opportunities Fund, Class I		420,342	$	18,532,888
Ivy Pacific Opportunities Fund, Class I		614,432		14,389,999

TOTAL AFFILIATED MUTUAL FUNDS - 99.63%			$	32,922,887

(Cost: $30,090,800)

SHORT-TERM SECURITIES - 1.31%	Principal Amount in Thousands


Repurchase Agreement
J.P. Morgan Securities, Inc., 3.85% Repurchase Agreement dated 9-28-07 to be repurchased at $434,139 on 10-1-07 (A)	$434	$	434,000
(Cost: $434,000)


TOTAL INVESTMENT SECURITIES - 100.94%		$	33,356,887

(Cost: $30,524,800)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.94%)			(309,867	)


NET ASSETS - 100.00%		$	33,047,020

Notes to Schedule of Investments

(A)Collateralized by $372,000 United States Treasury Bond, 6.375% due 8-15-27; market value and accrued interest aggregate $444,556.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY MANAGED EUROPEAN/PACIFIC FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (Notes 1 and 3):
Investments in affiliated mutual funds (cost - $30,091)	$	32,923
Repurchase agreement (cost - $434)		434

		33,357
Cash		1
Receivable for Fund shares sold		521
Prepaid and other assets		51

Total assets		33,930

LIABILITIES
Payable for investment securities purchased		840
Payable to Fund shareholders		28
Accrued shareholder servicing (Note 2)		3
Accrued accounting services fee (Note 2)		1
Accrued distribution fee (Note 2)		1
Accrued management fee (Note 2)		1
Accrued service fee (Note 2)		1
Other		8

Total liabilities		883

Total net assets	$	33,047

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	30,309
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(91	)
Accumulated undistributed net realized loss on investment transactions		(3	)
Net unrealized appreciation in value of investments		2,832

Net assets applicable to outstanding units of capital	$	33,047

Net asset value per share (net assets divided by shares outstanding):
Class A	$11.91
Class B	$11.88
Class C	$11.87
Class E	$11.92
Class I	$11.94
Class Y	$11.92
Capital shares outstanding:
Class A		2,499
Class B		86
Class C		126
Class E		20
Class I		20
Class Y		24

See Notes to Financial Statements.

Statement of Operations
      IVY MANAGED EUROPEAN/PACIFIC FUND
      For the Period from April 2, 2007 through September 30, 2007
      (In Thousands                                                                                                              (Unaudited)

INVESTMENT LOSS
Income (Note 1B):
Interest and amortization	$	10

Expenses (Note 2):
Registration fees		55
Service fee:
Class A		17
Class B		1
Class C		1
Class Y		––	*
Shareholder servicing:
Class A		7
Class B		––	*
Class C		––	*
Class E		––	*
Class I		––	*
Class Y		––	*
Distribution fee:
Class B		2
Class C		3
Class E		––	*
Investment management fee		4
Accounting services fee		3
Custodian fees		2
Audit fees		––	*
Legal fees		––	*
Other		8

Total		103
Less voluntary waiver of investment management fee (Note 2)		(2	)

Total expenses		101

Net investment loss		(91	)

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net loss on investments in affiliated mutual funds		(3	)
Unrealized appreciation in value of affiliated mutual funds during the period		2,832

Net gain on investments		2,829

Net increase in net assets resulting from operations	$	2,738

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY MANAGED EUROPEAN/PACIFIC FUND
      (In Thousands)                                                                                                           (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

INCREASE IN NET ASSETS
Operations:
Net investment loss		$	(91	)
Realized net loss on investments			(3	)
Unrealized appreciation			2,832

Net increase in net assets resulting from operations			2,738

Distributions to shareholders from (Note 1F): ⁽²⁾
Net investment income:
Class A			(––	)
Class B			(––	)
Class C			(––	)
Class E			(––	)
Class I			(––	)
Class Y			(––	)
Realized gains on investment transactions:
Class A			(––	)
Class B			(––	)
Class C			(––	)
Class E			(––	)
Class I			(––	)
Class Y			(––	)

			(––	)

Capital share transactions (Note 5)			30,309

Total increase			33,047
NET ASSETS
Beginning of period			––

End of period		$	33,047

Undistributed net investment loss		$	(91	)

(1)Commencement of operations.

(2)See "Financial Highlights" on pages 184 - 189.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED EUROPEAN/PACIFIC FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income (loss) from investment operations:
Net investment loss			(0.07	)⁽²⁾
Net realized and unrealized gain on investments			1.98	⁽²⁾

Total from investment operations			1.91

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.91

Total return ⁽³⁾			19.10	%
Net assets, end of period (in millions)		$30
Ratio of expenses to average net assets including voluntary expense waiver			1.27	%⁽⁴⁾
Ratio of net investment loss to average net assets including voluntary expense waiver			-1.17	%⁽⁴⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			1.30	%⁽⁴⁾
Ratio of net investment loss to average net assets excluding voluntary expense waiver			-1.19	%⁽⁴⁾
Portfolio turnover rate			0	%*

*Not shown due to rounding.

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED EUROPEAN/PACIFIC FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income (loss) from investment operations:
Net investment loss			(0.10	)⁽²⁾
Net realized and unrealized gain on investments			1.98	⁽²⁾

Total from investment operations			1.88

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.88

Total return			18.80	%
Net assets, end of period (in millions)		$1
Ratio of expenses to average net assets including voluntary expense waiver			2.06	%⁽³⁾
Ratio of net investment loss to average net assets including voluntary expense waiver			-1.85	%⁽³⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			2.09	%⁽³⁾
Ratio of net investment loss to average net assets excluding voluntary expense waiver			-1.88	%⁽³⁾
Portfolio turnover rate			0	%*

*Not shown due to rounding.

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED EUROPEAN/PACIFIC FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income (loss) from investment operations:
Net investment loss			(0.10	)⁽²⁾
Net realized and unrealized gain on investments			1.97	⁽²⁾

Total from investment operations			1.87

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.87

Total return			18.80	%
Net assets, end of period (in millions)		$1
Ratio of expenses to average net assets including voluntary expense waiver			2.03	%⁽³⁾
Ratio of net investment loss to average net assets including voluntary expense waiver			-1.80	%⁽³⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			2.06	%⁽³⁾
Ratio of net investment loss to average net assets excluding voluntary expense waiver			-1.83	%⁽³⁾
Portfolio turnover rate			0	%*

*Not shown due to rounding.

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED EUROPEAN/PACIFIC FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income (loss) from investment operations:
Net investment loss			(0.04	)⁽²⁾
Net realized and unrealized gain on investments			1.96	⁽²⁾

Total from investment operations			1.92

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.92

Total return ⁽³⁾			19.20	%
Net assets, end of period (in thousands)		$238
Ratio of expenses to average net assets including voluntary expense waiver			1.20	%⁽⁴⁾
Ratio of net investment loss to average net assets including voluntary expense waiver			-0.71	%⁽⁴⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			1.23	%⁽⁴⁾
Ratio of net investment loss to average net assets excluding voluntary expense waiver			-0.74	%⁽⁴⁾
Portfolio turnover rate			0	%*

*Not shown due to rounding.

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED EUROPEAN/PACIFIC FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income (loss) from investment operations:
Net investment loss			(0.03	)⁽²⁾
Net realized and unrealized gain on investments			1.97	⁽²⁾

Total from investment operations			1.94

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.94

Total return			19.40	%
Net assets, end of period (in thousands)		$239
Ratio of expenses to average net assets including voluntary expense waiver			0.94	%⁽³⁾
Ratio of net investment loss to average net assets including voluntary expense waiver			-0.45	%⁽³⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			0.97	%⁽³⁾
Ratio of net investment loss to average net assets excluding voluntary expense waiver			-0.48	%⁽³⁾
Portfolio turnover rate			0	%*

*Not shown due to rounding.

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED EUROPEAN/PACIFIC FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income (loss) from investment operations:
Net investment loss			(0.04	)⁽²⁾
Net realized and unrealized gain on investments			1.96	⁽²⁾

Total from investment operations			1.92

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.92

Total return			19.20	%
Net assets, end of period (in thousands)		$291
Ratio of expenses to average net assets including voluntary expense waiver			1.19	%⁽³⁾
Ratio of net investment loss to average net assets including voluntary expense waiver			-0.76	%⁽³⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			1.22	%⁽³⁾
Ratio of net investment loss to average net assets excluding voluntary expense waiver			-0.79	%⁽³⁾
Portfolio turnover rate			0	%*

*Not shown due to rounding.

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND

Portfolio Highlights

As a shareholder of Ivy Managed International Opportunities Fund, for every $100 you had invested on
September 30, 2007, your Fund owned:

Ivy International Balanced Fund, Class I	$	38.63
Ivy International Core Equity Fund, Class I	$	20.12
Ivy International Growth Fund, Class I	$	15.39
Ivy European Opportunities Fund, Class I	$	14.47
Ivy Pacific Opportunities Fund, Class I	$	11.26
Cash and Cash Equivalents	$	0.13

The Investments of Ivy Managed International Opportunities Fund
September 30, 2007 (Unaudited)
AFFILIATED MUTUAL FUNDS		Shares			Value


Ivy European Opportunities Fund, Class I			193,551	$	8,533,662
Ivy International Balanced Fund, Class I	1,289,772				22,790,277
Ivy International Core Equity Fund, Class I			588,778		11,869,753
Ivy International Growth Fund, Class I			224,773		9,078,596
Ivy Pacific Opportunities Fund, Class I			283,617		6,642,308


TOTAL AFFILIATED MUTUAL FUNDS - 99.87%				$	58,914,596

(Cost: $55,696,326)

SHORT-TERM SECURITIES - 1.29%	Principal Amount in Thousands


Repurchase Agreement
J.P. Morgan Securities, Inc., 3.85% Repurchase Agreement dated 9-28-07 to be repurchased at $759,244 on 10-1-07 (A)	$759	$	759,000
(Cost: $759,000)

TOTAL INVESTMENT SECURITIES - 101.16%		$	59,673,596

(Cost: $56,455,326)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.16%)			(684,532	)


NET ASSETS - 100.00%		$	58,989,064

Notes to Schedule of Investments

(A)Collateralized by $652,000 United States Treasury Bond, 6.375% due 8-15-27; market value and accrued interest aggregate $779,167.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts                                                           (Unaudited)

ASSETS
Investment securities - at value (Notes 1 and 3):
Investments in affiliated mutual funds (cost - $55,696)	$	58,915
Repurchase agreement (cost - $759)		759

		59,674
Cash		1
Receivables:
Fund shares sold		513
Interest		––	*
Prepaid and other assets		56

Total assets		60,244

LIABILITIES
Payable for investment securities purchased		1,233
Accrued shareholder servicing (Note 2)		4
Payable to Fund shareholders		3
Accrued accounting services fee (Note 2)		2
Accrued distribution fee (Note 2)		2
Accrued management fee (Note 2)		2
Accrued service fee (Note 2)		1
Other		8

Total liabilities		1,255

Total net assets	$	58,989

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	55,684
Accumulated undistributed income:
Accumulated undistributed net investment income		87
Accumulated undistributed net realized gain on investment transactions		––
Net unrealized appreciation in value of investments		3,218

Net assets applicable to outstanding units of capital	$	58,989

Net asset value per share (net assets divided by shares outstanding):
Class A	$11.25
Class B	$11.21
Class C	$11.22
Class E	$11.26
Class I	$11.27
Class Y	$11.26
Capital shares outstanding:
Class A		4,787
Class B		176
Class C		203
Class E		20
Class I		20
Class Y		38

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Operations
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      For the Period from April 2, 2007 through September 30, 2007
      (In Thousands)                                                                                                             (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends from affiliated mutual funds	$	200
Interest and amortization		18

Total income		218

Expenses (Note 2):
Registration fees		56
Service fee:
Class A		31
Class B		1
Class C		2
Class Y		––	*
Shareholder servicing:
Class A		9
Class B		1
Class C		––	*
Class E		––	*
Class I		––	*
Class Y		––	*
Distribution fee:
Class B		4
Class C		5
Class E		––	*
Investment management fee		7
Accounting services fee		6
Custodian fees		2
Audit fees		––	*
Legal fees		––	*
Other		8

Total		132
Less voluntary waiver of investment management fee (Note 2)		(1	)

Total expenses		131

Net investment income		87

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Unrealized appreciation in value of affiliated mutual funds during the period		3,218

Net gain on investments		3,218

Net increase in net assets resulting from operations	$	3,305

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
(In Thousands) (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

INCREASE IN NET ASSETS
Operations:
Net investment income		$	87
Realized net gain on investments			––
Unrealized appreciation			3,218

Net increase in net assets resulting from operations			3,305

Distributions to shareholders from (Note 1F): ⁽²⁾
Net investment income:
Class A			(––	)
Class B			(––	)
Class C			(––	)
Class E			(––	)
Class I			(––	)
Class Y			(––	)
Realized gains on investment transactions:
Class A			(––	)
Class B			(––	)
Class C			(––	)
Class E			(––	)
Class I			(––	)
Class Y			(––	)

			(––	)

Capital share transactions (Note 5)			55,684

Total increase			58,989
NET ASSETS
Beginning of period			––

End of period		$	58,989

Undistributed net investment income		$	87

(1)Commencement of operations.

(2)See "Financial Highlights" on pages 195 - 200.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income from investment operations:
Net investment income			0.04	⁽²⁾
Net realized and unrealized gain on investments			1.21	⁽²⁾

Total from investment operations			1.25

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.25

Total return ⁽³⁾			12.50	%
Net assets, end of period (in millions)		$54
Ratio of expenses to average net assets including voluntary expense waiver			0.89	%⁽⁴⁾
Ratio of net investment income to average net assets including voluntary expense waiver			0.68	%⁽⁴⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			0.90	%⁽⁴⁾
Ratio of net investment income to average net assets excluding voluntary expense waiver			0.67	%⁽⁴⁾
Portfolio turnover rate			0	%

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income (loss) from investment operations:
Net investment loss			(0.00	)⁽²⁾
Net realized and unrealized gain on investments			1.21	⁽²⁾

Total from investment operations			1.21

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.21

Total return			12.20	%
Net assets, end of period (in millions)		$2
Ratio of expenses to average net assets including voluntary expense waiver			1.69	%⁽³⁾
Ratio of net investment loss to average net assets including voluntary expense waiver			-0.07	%⁽³⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			1.70	%⁽³⁾
Ratio of net investment loss to average net assets excluding voluntary expense waiver			-0.08	%⁽³⁾
Portfolio turnover rate			0	%

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income from investment operations:
Net investment income			0.00	⁽²⁾
Net realized and unrealized gain on investments			1.22	⁽²⁾

Total from investment operations			1.22

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.22

Total return			12.20	%
Net assets, end of period (in millions)		$2
Ratio of expenses to average net assets including voluntary expense waiver			1.63	%⁽³⁾
Ratio of net investment income to average net assets including voluntary expense waiver			0.04	%⁽³⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			1.64	%⁽³⁾
Ratio of net investment income to average net assets excluding voluntary expense waiver			0.03	%⁽³⁾
Portfolio turnover rate			0	%

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income from investment operations:
Net investment income			0.04	⁽²⁾
Net realized and unrealized gain on investments			1.22	⁽²⁾

Total from investment operations			1.26

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.26

Total return ⁽³⁾			12.60	%
Net assets, end of period (in thousands)		$225
Ratio of expenses to average net assets including voluntary expense waiver			0.85	%⁽⁴⁾
Ratio of net investment income to average net assets including voluntary expense waiver			0.77	%⁽⁴⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			0.86	%⁽⁴⁾
Ratio of net investment income to average net assets excluding voluntary expense waiver			0.76	%⁽⁴⁾
Portfolio turnover rate			0	%

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income from investment operations:
Net investment income			0.06	⁽²⁾
Net realized and unrealized gain on investments			1.21	⁽²⁾

Total from investment operations			1.27

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.27

Total return			12.70	%
Net assets, end of period (in thousands)		$225
Ratio of expenses to average net assets including voluntary expense waiver			0.29	%⁽³⁾
Ratio of net investment income to average net assets including voluntary expense waiver			1.02	%⁽³⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			0.30	%⁽³⁾
Ratio of net investment income to average net assets excluding voluntary expense waiver			1.01	%⁽³⁾
Portfolio turnover rate			0	%

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

Financial Highlights
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                      (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.00

Income from investment operations:
Net investment income			0.03	⁽²⁾
Net realized and unrealized gain on investments			1.23	⁽²⁾

Total from investment operations			1.26

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	11.26

Total return			12.60	%
Net assets, end of period (in millions)		$1
Ratio of expenses to average net assets including voluntary expense waiver			0.85	%⁽³⁾
Ratio of net investment income to average net assets including voluntary expense waiver			0.61	%⁽³⁾
Ratio of expenses to average net assets excluding voluntary expense waiver			0.86	%⁽³⁾
Ratio of net investment income to average net assets excluding voluntary expense waiver			0.60	%⁽³⁾
Portfolio turnover rate			0	%

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY MORTGAGE SECURITIES FUND

Portfolio Highlights

On September 30, 2007, Ivy Mortgage Securities Fund had net assets totaling
$344,476,317 invested in a diversified portfolio of:

56.27%		Corporate Bonds
38.53%		United States Government Agency Obligations
5.20%		Cash and Cash Equivalents

Quality Weightings

On September 30, 2007, the breakdown of bonds (by ratings) held by the Fund was as follows:

AAA	66.25	%
AA	10.32	%
A	5.15	%
BBB	7.29	%
BB	4.30	%
Non-Rated	1.49	%
Cash and Cash Equivalents	5.20	%

Ratings reflected in the wheel are taken from the following sources in order of preference: Standard & Poor's, Moody's or management's internal ratings, where no other ratings are available.

The Investments of Ivy Mortgage Securities Fund
September 30, 2007 (Unaudited)
CORPORATE DEBT SECURITIES	Principal Amount in Thousands				Value


Finance Companies
ABFS Mortgage Loan Trust:
2001-2,
6.99%, 12-25-31 (A)	$	1,074		$	1,076,724
2002-4,
7.423%, 12-15-33 (A)		1,485			1,421,585
Aames Mortgage Trust 2001-4,
6.65%, 1-25-32 (A)		501			481,633
Asset Securitization Corporation:
1.6136%, 10-13-26 (Interest Only) (A)(B)		4,115			169,866
8.62125%, 8-13-29 (Interest Only) (A)		1,384			329,330
7.66418%, 2-14-43 (A)		1,430			1,556,925
Associates Manufactured Housing Contract Pass-Through Certificates,
7.9%, 3-15-27		1,313			1,340,166
Banc of America Alternative Loan Trust:
2004-11,
6.0%, 12-25-34		1,135			1,122,204
2005-6,
6.0%, 7-25-35		863			861,143
2005-8:
5.57587%, 9-25-35 (A)		2,049			1,895,418
5.57587%, 9-25-35 (A)		407			351,195
2005-10,
5.66892%, 11-25-35 (A)		1,157			908,277
2005-12,
5.80813%, 1-25-36 (A)		1,635			1,449,669
2006-4:
6.2253%, 5-25-46 (A)		896			685,705
6.2253%, 5-25-46 (A)		642			605,396
2006-6,
6.0%, 6-25-46		3,070			3,016,611
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates:
Series 2002-2,
6.2%, 7-11-43 (B)		1,200			1,190,680
Series 2003-1,
4.9%, 9-11-36 (B)		1,000			931,966
Series 2004-6,
5.104%, 12-10-42 (A)(B)		800			733,458
Banc of America Commercial Mortgage Trust 2007-1,
5.451%, 1-15-49		1,000			987,194
Banc of America Funding 2004-2 Trust,
6.5%, 7-20-32		1,213			1,205,246
Banc of America Funding Corporation,
5.00739%, 9-20-34 (A)		1,284			1,264,904
Banc of America Mortgage 2005-J Trust,
5.08948%, 11-25-35 (A)		2,031			2,018,731
Banc of America Mortgage 2007-1 Trust:
6.0%, 3-25-37		3,618			3,398,794
6.0%, 3-25-37		1,000			973,750
Banc of America Mortgage Alternative Loan Trust 2003-5,
5.5%, 7-25-33		1,276			1,078,357
Banc of America Mortgage Trust:
2003-9,
5.5%, 12-25-33		816			636,052
2004-1,
5.5%, 2-25-34		1,910			1,722,614
2004-2:
5.0%, 3-25-19		299			287,756
5.0%, 3-25-19		233			220,311
5.5%, 3-25-34		471			430,041
2004-3:
4.875%, 4-25-19		403			383,930
4.875%, 4-25-19		216			201,884
2004-7,
5.75%, 8-25-34		1,106			1,091,981
Banc of America Structured Securities Trust 2002-X1 F,
6.274%, 10-11-33 (B)		1,750			1,764,036
Banco Hipotecario Nacional:
7.916%, 7-25-09 (C)		23			233
2.57%, 3-25-11 (C)		10			100
7.54%, 5-31-17 (C)		-	*		1
BankAmerica Manufactured Housing Contract Trust:
7.8%, 10-10-26		2,000			2,043,964
7.015%, 1-10-28		1,041			1,054,148
Bear Stearns Commercial Mortgage Securities Inc.:
Series 2001-TOP2 Trust Fund,
7.49057%, 2-15-35 (A)(B)		3,000			3,130,055
Series 2000-WF1 Trust Fund,
6.5%, 2-15-32		1,015			1,022,902
Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6,
6.0%, 10-15-36 (B)		938			936,422
Bear Stearns Mortgage Funding Trust 2006-SL2,
5.54125%, 9-25-36 (A)		2,295			1,000,680
Bear Stearns Mortgage Securities Inc.,
8.0%, 11-25-29		419			418,026
BlackRock Capital Finance,
7.75%, 9-25-26 (B)		567			566,230
C-Bass:
2005-CB3 Trust,
5.109%, 12-25-34 (A)		1,254			1,179,768
2006-CB2 Trust,
5.717%, 12-25-36 (A)		394			392,561
2006-MH1 Trust,
5.97%, 9-25-36 (A)(B)		1,444			1,467,222
Mortgage Loan Trust 2007-CB2,
5.891%, 2-25-37 (A)		436			434,312
CHL Mortgage Pass-Through Trust:
2002-32,
5.5314%, 1-25-33 (A)		1,381			1,308,461
2003-28,
4.15%, 8-25-33		1,500			1,422,028
2003-HYB2,
3.96935%, 7-19-33 (A)		2,019			1,946,185
COMM 2006-CNL2,
5.5699%, 2-5-19 (A)(B)		925			887,290
CSAB Mortgage-Backed Trust 2006-2,
6.08%, 9-25-36 (A)		3,540			3,470,990
CSFB Commercial Mortgage Trust 2003-C4,
5.322%, 8-15-36 (A)(B)		1,000			960,384
CWHEQ Home Equity Loan Trust, Series 2006-S3,
6.518%, 1-25-29 (A)		2,135			2,065,044
Capital Auto Receivables Asset Trust:
2006-1,
7.16%, 1-15-13 (B)		1,140			1,164,097
2007-2,
8.3%, 2-15-14 (B)		1,105			1,179,405
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35 (A)		2,301			2,223,044
Chase Mortgage Finance Trust:
Series 2003-S2,
5.0%, 3-25-18		1,646			1,624,174
Series 2003-S11,
5.5%, 10-25-33		867			841,844
Citicorp Residential Mortgage Trust Series 2006-2,
5.872%, 9-25-36 (A)		1,217			1,211,071
CitiMortgage Alternative Loan Trust:
Series 2006-A7,
0.0%, 12-25-36 (D)		3,417			3,363,250
Series 2007-A7,
6.23737%, 7-25-37 (A)		644			410,905
Collateralized Mortgage Obligation Trust,
5.0%, 7-1-18		33			32,548
Commercial Mortgage Asset Trust,
7.8%, 11-17-32 (A)		1,000			1,123,146
Conseco Finance Securitizations Corp.,
6.981%, 6-15-32		1,035			976,442
CountryPlace Manufactured Housing Contract Trust 2005-1,
4.8%, 12-15-35 (A)(C)		1,275			1,232,368
Countrywide Home Loans Alternative Loan Trust 2004-J9,
4.586%, 10-25-34 (A)		1,984			1,968,716
Countrywide Home Loans, Inc. Asset-Backed Certificates, Series 2005-10,
4.915%, 2-25-36 (A)		5,000			4,744,372
Credit Suisse Commercial Mortgage Trust Series 2006-C5,
5.311%, 12-15-39		1,000			981,401
Credit Suisse First Boston Mortgage Securities Corp.,
6.0%, 11-25-18		473			475,524
DLJ Commercial Mortgage Corp. 1998-CG1,
7.35697%, 6-10-31 (A)(B)		1,640			1,745,879
FFCA Secured Lending Corporation:
6.71375%, 2-18-22 (A)(C)		1,500			1,425,904
6.96375%, 2-18-22 (A)(C)		1,000			941,842
First Horizon Mortgage Pass-Through Trust 2003-8,
5.12611%, 10-25-33 (A)		369			266,300
Flagstar Home Equity Loan Trust 2007-1,
5.997%, 1-25-35 (A)(C)		1,630			1,589,736
Ford Credit Auto Owner Trust:
2006-B,
7.12%, 2-15-13 (B)		635			616,952
2007-A,
7.05%, 12-15-13 (B)		390			374,283
GMAC Commercial Mortgage Securities,
5.94%, 7-1-13 (B)		131			128,653
GS Mortgage Securities Trust 2007-GG10,
5.93329%, 8-10-45 (A)		1,500			1,525,522
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage Securitization 2005-A LLC:
5.25%, 4-25-32		780			709,902
5.39485%, 4-25-32 (A)		1,214			1,049,308
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC:
5.25%, 11-25-32 (C)		1,075			1,024,496
5.25%, 11-25-32 (C)		501			481,315
Green Tree Financial Corporation:
7.65%, 4-15-19		683			712,035
8.3%, 11-15-19		500			521,883
9.1%, 4-15-25		1,075			1,121,981
9.0%, 6-15-25		1,052			1,104,004
Greenwich Capital Commercial Funding Corp., Commercial Mortgage Trust 2002-C1,
5.5%, 1-11-35 (B)		780			746,915
Hilton Hotel Pool Trust:
6.165%, 10-3-15 (A)(B)		500			493,816
7.653%, 10-3-15 (B)		1,955			2,076,284
Home Equity Loan Trust 2003-HS2,
5.09%, 7-25-33 (A)		178			168,340
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38 (C)		2,091			2,079,393
Impac CMB Trust Series 2003-2F,
6.0%, 1-25-33 (A)		893			636,382
J.P. Morgan Alternative Loan Trust 2005-S1 Mortgage Pass-Through Certificates, Series 2005-S1,
6.0%, 12-25-35		998			988,868
J.P. Morgan Alternative Loan Trust 2006-A6,
5.95%, 11-25-36 (A)		2,500			2,497,758
J.P. Morgan Chase Commercial Mortgage Securities Corp.,
6.2207%, 10-12-37 (B)		2,300			2,341,995
J.P. Morgan Chase Commercial Mortgage Securities Trust 2007-LDP10,
5.42%, 1-15-49		3,000			2,955,937
J.P. Morgan Mortgage Acquisition Trust:
2006-CW2,
6.337%, 8-25-36 (A)		2,725			2,711,729
2006-WF1,
6.41%, 7-25-36 (A)		2,510			2,502,625
J.P. Morgan Mortgage Trust:
2004-A3,
4.29236%, 7-25-34 (A)		1,399			1,364,468
2005-S2:
5.67065%, 9-25-35 (A)		2,231			2,041,903
6.5%, 9-25-35		2,310			2,343,268
2006-A2:
3.75609%, 11-25-33 (A)		1,551			1,529,560
3.8175%, 8-25-34 (A)		2,128			2,074,864
2006-A6,
6.04729%, 10-25-36 (A)		2,510			2,582,748
2006-S3:
6.187%, 8-25-36		1,200			1,097,503
6.5%, 8-25-36		1,810			1,801,689
2007-A1,
4.82%, 7-25-35 (A)		2,188			2,080,856
2007-A2,
5.7161%, 4-25-37 (A)		3,519			3,518,621
LB-UBS Commercial Mortgage Trust 2003-C3,
4.846%, 2-15-37 (A)(B)		300			278,866
Lehman Mortgage Trust Mortgage Pass-Through Certificates, Series 2006-5,
6.88956%, 9-25-36 (A)		2,004			1,952,420
Lehman XS Trust, Series 2005-8,
5.69%, 12-25-35		3,057			3,030,779
MASTR Asset Securitization Trust:
2003-10,
5.5%, 11-25-33		1,442			1,400,775
2003-6,
5.5%, 7-25-33		1,677			1,618,507
Metropolitan Asset Funding, Inc.,
6.98%, 5-20-12 (B)		9			9,400
Mid-State Capital Corporation 2004-1 Trust:
6.005%, 8-15-37		334			342,272
6.497%, 8-15-37		1,215			1,234,604
Morgan Stanley Capital I Trust 2003-IQ5,
5.93473%, 4-15-38 (A)(B)		2,348			2,215,119
Morgan Stanley Dean Witter Capital I Inc. Trust 2002-WL1,
6.51994%, 4-25-17 (A)		261			260,929
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4:
1.09475%, 11-28-35 (Interest Only) (A)(C)	30,757				692,029
5.88%, 11-28-35 (A)(C)		680			652,821
5.88%, 11-28-35 (A)(C)		340			333,838
Multi Security Asset Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-RR4,
5.0%, 11-28-35 (C)		2,000			1,957,500
NationsLink Funding Corporation, Commercial Mortgage Pass-Through Certificates, Series 1998-2,
5.0%, 8-20-30 (B)		1,000			966,132
Nomura Asset Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series1998-D6,
6.0%, 3-15-30 (B)		2,250			2,302,955
Oakwood Mortgage Investors, Inc.:
8.1%, 10-15-21 (B)		310			312,536
7.375%, 8-15-27		287			289,605
Origen Manufactured Housing Contract Trust:
2004-A,
5.7%, 1-15-35		543			527,502
2004-B,
4.75%, 8-15-21		400			386,809
2005-A,
4.97%, 10-15-21		935			926,020
Trust 2005-B:
5.605%, 5-15-22		360			361,838
5.91%, 1-15-37		700			693,306
PHH Alternative Mortgage Trust, Series 2007-1, Class II-B-2,
6.0%, 2-25-37		1,563			1,379,008
Prudential Home Mortgage Securities:
6.98002%, 9-28-08 (A)(B)		3			2,994
6.73%, 4-28-24 (A)(C)		3			3,262
8.04423%, 9-28-24 (A)(B)		24			23,668
RALI Series:
2003-QS10 Trust,
5.5%, 5-25-33		2,202			2,144,510
2003-QS11 Trust,
5.75%, 6-25-33		2,495			2,391,758
RAMP Series 2005-RS1 Trust,
5.145%, 1-25-35 (A)		1,075			921,509
RASC Series 2003-KS10 Trust,
6.41%, 12-25-33		313			261,335
RESI Finance Limited Partnership 2003-C and RESI Finance DE Corporation 2003-C,
7.22%, 9-10-35 (A)(C)		1,427			1,402,600
RFMSI Series 2004-S5 Trust:
4.5%, 5-25-19		337			315,659
4.5%, 5-25-19		168			154,346
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1,
7.75%, 12-25-30 (A)		1,202			1,241,170
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21,
5.4%, 11-25-35 (A)		1,575			1,527,750
Structured Asset Mortgage Investments, Inc.:
5.85515%, 4-30-30 (A)		19			19,281
5.85515%, 4-30-30 (A)		9			8,786
Structured Asset Securities Corporation:
5.54%, 11-25-32 (A)		225			224,362
5.25%, 8-25-33		1,311			1,207,502
5.25%, 8-25-33		571			511,764
5.63%, 5-25-34 (A)		811			807,619
6.0%, 6-25-34 (A)		2,247			2,253,115
Vanderbilt Mortgage and Finance, Inc.:
7.955%, 12-7-24		657			692,369
7.525%, 11-7-26		915			914,784
Wachovia Bank Commercial Mortgage Trust (The),
4.942%, 11-15-34 (B)		964			881,421
Washington Mutual MSC Mortgage Pass-Through Certificates Series 2002-MS11 Trust,
5.60537%, 12-25-32 (A)		958			905,393
Wells Fargo Alternative Loan 2007-PA3 Trust:
5.75%, 7-25-37		1,079			997,648
6.20114%, 7-25-37 (A)		1,787			1,622,121
6.20114%, 7-25-37 (A)		1,563			1,300,973
Wells Fargo Mortgage Backed Securities:
2003-2 Trust,
5.25%, 2-25-18		269			249,694
2003-4 Trust,
5.5%, 6-25-33		938			814,603
2003-9 Trust,
5.25%, 8-25-33 (B)		1,135			838,283
2004-1 Trust (The),
5.5%, 2-25-34		1,636			1,537,284
2005-16 Trust,
5.75%, 1-25-36		500			482,751

TOTAL CORPORATE DEBT SECURITIES - 56.27%				$	193,814,246

(Cost: $200,401,875)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS


Agency Obligations - 0.20%
Federal Home Loan Mortgage Corporation,
2.75%, 3-15-08 (E)	200			198,062
Federal National Mortgage Association,
5.0%, 9-15-08 (E)		500		503,212
				701,274
Mortgage-Backed Obligations - 38.33%
Federal Home Loan Mortgage Corporation Adjustable Rate Participation Certificates,
9.97667%, 3-15-09 (A)		358		364,152
Federal Home Loan Mortgage Corporation Agency REMIC/CMO,
5.0%, 6-15-31		2,000		1,932,939
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
5.5%, 12-1-17		679		679,919
5.5%, 9-1-19		1,172		1,170,070
3.5%, 2-15-30		1,826		1,740,549
6.5%, 9-1-32		1,119		1,152,776
5.3%, 1-15-33		206		198,728
5.0%, 7-15-33		2,080		1,977,794
5.5%, 5-1-34		837		821,812
5.5%, 5-1-34		1,240		1,218,331
6.5%, 5-1-34		805		822,301
5.5%, 10-1-34		994		975,381
5.0%, 5-15-35		2,196		2,010,326
5.5%, 7-1-35		2,775		2,720,281
5.0%, 8-1-35		897		856,818
5.5%, 10-1-35		1,628		1,597,680
5.0%, 12-1-35		843		805,446
6.0%, 10-1-37		1,000		1,000,938
Federal National Mortgage Association Adjustable Rate Pass-Through Certificates,
4.659%, 7-1-35 (A)		1,239		1,224,979
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.0%, 1-1-18		432		437,881
5.5%, 2-1-18		426		426,876
5.5%, 3-1-18		1,968		1,969,152
5.0%, 5-1-18		1,339		1,317,165
5.0%, 10-1-18		1,324		1,301,490
5.5%, 9-1-19		343		342,501
5.5%, 10-1-20		5,300		5,286,750
5.5%, 2-1-24		509		504,108
6.0%, 8-1-29		414		417,331
7.0%, 11-1-31		198		207,195
6.5%, 2-1-32	139			142,959
6.5%, 2-1-32		124		127,352
6.5%, 2-1-32		180		185,902
7.0%, 2-1-32		248		259,434
7.0%, 3-1-32		338		353,465
6.5%, 4-1-32		76		77,851
6.5%, 5-1-32		133		136,754
6.5%, 5-1-32		88		89,732
6.5%, 7-1-32		662		681,788
6.0%, 9-1-32		150		151,874
6.5%, 9-1-32		79		81,169
6.0%, 10-1-32		979		988,261
6.0%, 10-1-32		945		953,533
6.5%, 10-1-32		63		64,973
6.0%, 11-1-32		826		833,749
6.0%, 11-1-32		485		489,630
6.0%, 3-1-33		1,259		1,270,099
6.0%, 3-1-33		1,159		1,169,045
6.0%, 3-1-33		817		824,796
6.0%, 3-1-33		248		249,778
5.5%, 4-1-33		1,694		1,665,468
5.5%, 5-1-33		544		534,458
5.5%, 5-1-33		290		285,313
6.0%, 6-1-33		2,722		2,735,438
6.5%, 8-1-33		44		45,396
6.0%, 10-1-33		267		268,347
5.0%, 11-1-33		1,709		1,635,790
6.0%, 12-1-33		513		516,463
5.0%, 1-1-34		1,644		1,573,811
5.5%, 1-1-34		1,498		1,470,549
5.0%, 3-1-34		963		921,439
5.0%, 3-1-34		406		388,731
5.5%, 3-1-34		2,241		2,203,683
5.5%, 4-1-34		1,932		1,899,382
5.5%, 4-1-34		1,577		1,547,548
5.5%, 4-1-34		610		599,111
5.0%, 5-1-34		186		178,171
5.5%, 7-1-34		1,793		1,762,068
6.0%, 8-1-34		633		634,861
5.5%, 9-1-34		1,270		1,247,000
6.0%, 9-1-34		841		844,349
6.5%, 9-1-34		985		1,006,150
5.5%, 10-1-34		7,125		6,978,047
5.5%, 10-1-34		1,929		1,895,129
6.0%, 10-1-34		1,000		1,001,250
5.5%, 11-1-34		716		702,822
6.0%, 11-1-34		397		398,821
6.5%, 11-1-34		73		74,115
6.0%, 12-1-34		2,389		2,397,766
5.5%, 1-1-35		635		622,664
4.5%, 2-1-35		468		434,725
5.5%, 2-1-35		2,364		2,320,913
5.5%, 2-1-35		1,911		1,877,497
5.5%, 2-1-35		1,111		1,090,597
6.5%, 3-1-35		1,199		1,227,755
6.0%, 4-1-35		1,681		1,684,630
6.0%, 6-1-35		2,713		2,722,985
5.0%, 7-1-35		801		764,893
5.5%, 7-1-35		796		780,938
5.5%, 10-1-35		1,700		1,669,213
5.5%, 10-1-35		943		926,091
5.5%, 2-1-36		1,638		1,587,864
6.5%, 2-1-36		673		685,382
6.5%, 6-1-36		1,234		1,256,430
6.0%, 8-1-36		2,057		2,060,596
6.5%, 10-1-36		2,935		2,988,197
6.0%, 11-1-36		2,307		2,310,346
6.0%, 5-1-37		988		989,542
6.5%, 8-1-37		1,990		2,026,030
Government National Mortgage Association Agency REMIC/CMO (Interest Only):
1.13796%, 3-16-34 (A)		7,622		302,696
0.84617%, 7-16-40 (A)		3,952		127,564
0.25135%, 3-16-42 (A)	15,044			159,687
0.93645%, 6-17-45 (A)	19,635			1,000,993
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
7.875%, 5-15-17	621			678,023
6.25%, 7-15-24		283		289,361
5.5%, 3-16-32		4,575		4,562,096
5.0%, 7-15-33		1,014		982,278
5.0%, 7-15-34		883		855,642
5.0%, 10-1-34		700		677,032
5.5%, 12-15-34		1,030		1,016,267
5.5%, 12-15-34		601		593,171
5.0%, 1-15-35		1,758		1,701,578
5.5%, 10-1-35		3,000		2,957,814
5.0%, 12-15-35		1,940		1,877,602
6.0%, 10-1-36		1,875		1,886,719
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust:
1995-1 Class 1,
7.20763%, 2-15-25 (A)		225		237,077
1995-1 Class 2,
7.7925%, 2-15-25		72		76,592
				132,034,769

TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 38.53%			$	132,736,043

(Cost: $135,428,208)


SHORT-TERM SECURITIES


Commercial Paper
Chemicals - Petroleum and Inorganic - 1.45%
E.I. du Pont de Nemours and Company,
4.75%, 10-9-07		5,000		4,994,722

Finance Companies - 0.87%
Prudential Funding LLC,
5.15%, 10-11-07		3,000		2,995,708

Food and Related - 1.88%
ConAgra Foods, Inc.,
5.23%, 10-3-07		1,500		1,499,564
General Mills, Inc.,
5.31%, 10-10-07		5,000		4,993,363
				6,492,927

Health Care - Drugs - 1.74%
GlaxoSmithKline Finance plc,
5.4%, 10-5-07	6,000			5,996,400

Household - General Products - 2.03%
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)):
5.2%, 10-9-07		4,000		3,995,378
4.8%, 10-17-07		3,000		2,993,600
				6,988,978
Leisure Time Industry - 1.45%
Walt Disney Company (The),
5.365%, 10-3-07		5,000		4,998,510

Mining - 1.07%
BHP Billiton Finance (USA) Limited (BHP Billiton Limited),
5.0%, 10-1-07		3,675		3,675,000

Publishing - 0.58%
Gannett Co., Inc.,
5.35%, 10-25-07		2,000		1,992,867

Total Commercial Paper - 11.07%				38,135,112


Commercial Paper (backed by irrevocable bank letter of credit) - 0.58%
Finance Companies
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)),
5.0%, 10-2-07		2,000		1,999,722

TOTAL SHORT-TERM SECURITIES - 11.65%			$	40,134,834

(Cost: $40,134,834)

TOTAL INVESTMENT SECURITIES - 106.45%			$	366,685,123

(Cost: $375,964,917)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (6.45%)				(22,208,806	)


NET ASSETS - 100.00%			$	344,476,317

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.
*Not shown due to rounding.
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007.
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $31,437,262 or 9.13% of net assets.
(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $13,817,438 or 4.01% of net assets.
(D)This security does not bear interest for an initial period of time and subsequently becomes interest bearing.
(E)Securities serve as collateral for the following open futures contracts at September 30, 2007. (See Note 7 to financial statements):
	Description	Type	Expiration Date	Number of Contracts		Market Value	Unrealized Appreciation (Depreciation			)

	United States 5 Year Treasury Note	Short	12-31-07	6	$	642,188		$	(4,436	)
	United States 10 Year Treasury Note	Short	12-19-07	97		10,600,281			41,577

					$	11,242,469		$	37,141

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY MORTGAGE SECURITIES FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (cost - $375,965) (Notes 1 and 3)	$	366,685
Receivables:
Interest		1,532
Fund shares sold		656
Variation margin (Note 7)		9
Prepaid and other assets		43

Total assets		368,925

LIABILITIES
Payable for investment securities purchased		22,897
Payable to Fund shareholders		610
Due to custodian		309
Accrued management fee (Note 2)		139
Dividends payable		130
Accrued service fee (Note 2)		127
Accrued shareholder servicing (Note 2)		102
Accrued distribution fee (Note 2)		20
Accrued accounting services fee (Note 2)		9
Other		106

Total liabilities		24,449

Total net assets	$	344,476

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	355,140
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		––
Accumulated undistributed net realized loss on investment transactions		(1,421	)
Net unrealized depreciation in value of investments		(9,243	)

Net assets applicable to outstanding units of capital	$	344,476

Net asset value per share (net assets divided by shares outstanding):
Class A	$10.39
Class B	$10.39
Class C	$10.39
Class E	$10.39
Class I	$10.39
Class Y	$10.39
Capital shares outstanding:
Class A		28,759
Class B		1,281
Class C		1,889
Class E		17
Class I		24
Class Y		1,188

See Notes to Financial Statements.

Statement of Operations
      IVY MORTGAGE SECURITIES FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                             (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	9,876

Expenses (Note 2):
Investment management fee		834
Shareholder servicing:
Class A		378
Class B		30
Class C		29
Class E		1
Class I		––	*
Class Y		10
Service fee:
Class A		350
Class B		15
Class C		24
Class Y		16
Distribution fee:
Class A		11
Class B		45
Class C		73
Class E		––	*
Accounting services fee		53
Audit fees		15
Custodian fees		15
Legal fees		4
Other		121

Total expenses		2,024

Net investment income		7,852

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net loss on securities		(568	)
Realized net gain on futures		87

Realized net loss on investments		(481	)

Unrealized depreciation in value of securities during the period		(5,779	)
Unrealized appreciation in value of futures contracts during the period		46

Unrealized depreciation in value of investments during the period		(5,733	)

Net loss on investments		(6,214	)

Net increase in net assets resulting from operations	$	1,638

See Notes to Financial Statements.

Statement of Changes in Net Assets
IVY MORTGAGE SECURITIES FUND
(In Thousands) (Unaudited)

				For the fiscal year ended March 31, 2007

INCREASE IN NET ASSETS
Operations:
Net investment income	$	7,852		$	14,172
Realized net loss on investments		(481	)		(111	)
Unrealized appreciation (depreciation)		(5,733	)		3,634

Net increase in net assets resulting from operations		1,638			17,695

Distributions to shareholders from (Note 1F): ⁽¹⁾
Net investment income:
Class A		(6,900	)		(12,512	)
Class B		(230	)		(422	)
Class C		(388	)		(765	)
Class E		(3	)		NA
Class I		(6	)		NA
Class Y		(325	)		(473	)
Realized gains on investment transactions:
Class A		(––	)		(––	)
Class B		(––	)		(––	)
Class C		(––	)		(––	)
Class E		(––	)		NA
Class I		(––	)		NA
Class Y		(––	)		(––	)

		(7,852	)		(14,172	)

Capital share transactions (Note 5)		29,187			38,091

Total increase		22,973			41,614
NET ASSETS
Beginning of period		321,503			279,889

End of period	$	344,476		$	321,503

Undistributed net investment income	$	––		$	––

(1)See "Financial Highlights" on pages 220 - 225.

See Notes to Financial Statements.

Financial Highlights
      IVY MORTGAGE SECURITIES FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended September 30,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	10.59		$	10.44		$	10.68		$	10.96		$	10.97		$	11.07		$	10.99

Income (loss) from investment operations:
Net investment income			0.25			0.51			0.48			0.49			0.25			0.59			0.70
Net realized and unrealized gain (loss) on investments			(0.20	)		0.15			(0.24	)		(0.27	)		0.03			(0.12	)		0.11

Total from investment operations			0.05			0.66			0.24			0.22			0.28			0.47			0.81

Less distributions from:
Net investment income		(0.25		)	(0.51		)	(0.48		)	(0.49		)	(0.25		)	(0.57		)	(0.72		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.01		)	(0.04		)	(0.00		)	(0.00		)
Tax return of capital		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.01		)

Total distributions		(0.25		)	(0.51		)	(0.48		)	(0.50		)	(0.29		)	(0.57		)	(0.73		)

Net asset value, end of period		$	10.39		$	10.59		$	10.44		$	10.68		$	10.96		$	10.97		$	11.07

Total return⁽¹⁾			0.50	%		6.52	%		2.24	%		2.12	%		2.70	%		4.19	%⁽²⁾		7.88	%
Net assets, end of period (in millions)			$299			$278			$243			$188			$134			$91			$67
Ratio of expenses to average net assets including reimbursement			1.14	%⁽³⁾		1.14	%		1.05	%		0.95	%		1.05	%⁽³⁾⁽⁴⁾		0.97	%		0.95	%
Ratio of net investment income to average net assets including reimbursement			4.78	%⁽³⁾		4.90	%		4.51	%		4.59	%		4.56	%⁽³⁾⁽⁴⁾		5.27	%		6.24	%
Ratio of expenses to average net assets excluding reimbursement			1.14	%⁽³⁾⁽⁵⁾		1.14	%⁽⁵⁾		1.16	%		1.23	%		1.38	%⁽³⁾⁽⁴⁾		1.12	%		1.21	%
Ratio of net investment income to average net assets excluding reimbursement			4.78	%⁽³⁾⁽⁵⁾		4.90	%⁽⁵⁾		4.40	%		4.31	%		4.22	%⁽³⁾⁽⁴⁾		5.12	%		5.98	%
Portfolio turnover rate			48	%		121	%		154	%		200	%		57	%		83	%		99	%

(1)Total return calculated without taking into account the sales load deducted on an initial purchase.

(3)Annualized.

(4)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown reflect a blended rate that includes income and expenses for those Class B and Class C shares before October 1, 2003 up to the time of merger. Expenses for Class A shares before and after the merger were limited to 0.95% of average net assets.

(5)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY MORTGAGE SECURITIES FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	10.59		$	10.44		$	10.68		$	10.96		$	10.87

Income (loss) from investment operations:
Net investment income			0.20			0.40			0.36			0.37			0.12
Net realized and unrealized gain (loss) on investments			(0.20	)		0.15			(0.24	)		(0.27	)		0.13

Total from investment operations			0.00			0.55			0.12			0.10			0.25

Less distributions from:
Net investment income			(0.20	)		(0.40	)		(0.36	)		(0.37	)		(0.12	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.04	)

Total distributions			(0.20	)		(0.40	)		(0.36	)		(0.38	)		(0.16	)

Net asset value, end of period		$	10.39		$	10.59		$	10.44		$	10.68		$	10.96

Total return			0.01	%		5.45	%		1.12	%		0.92	%		2.32	%
Net assets, end of period (in millions)		$13			$12			$11			$7			$1
Ratio of expenses to average net assets			2.12	%⁽²⁾		2.16	%		2.16	%		2.16	%		1.89	%⁽²⁾
Ratio of net investment income to average net assets			3.80	%⁽²⁾		3.88	%		3.41	%		3.29	%		3.59	%⁽²⁾
Portfolio turnover rate			48	%		121	%		154	%		200	%		57	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the six months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY MORTGAGE SECURITIES FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	10.59		$	10.44		$	10.68		$	10.96		$	10.87

Income (loss) from investment operations:
Net investment income			0.21			0.42			0.38			0.38			0.12
Net realized and unrealized gain (loss) on investments			(0.20	)		0.15			(0.24	)		(0.27	)		0.13

Total from investment operations			0.01			0.57			0.14			0.11			0.25

Less distributions from:
Net investment income			(0.21	)		(0.42	)		(0.38	)		(0.38	)		(0.12	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.04	)

Total distributions			(0.21	)		(0.42	)		(0.38	)		(0.39	)		(0.16	)

Net asset value, end of period		$	10.39		$	10.59		$	10.44		$	10.68		$	10.96

Total return			0.11	%		5.69	%		1.34	%		1.05	%		2.32	%
Net assets, end of period (in millions)		$20			$19			$19			$12			$2
Ratio of expenses to average net assets			1.92	%⁽²⁾		1.93	%		1.93	%		2.03	%		1.86	%⁽²⁾
Ratio of net investment income to average net assets			4.00	%⁽²⁾		4.11	%		3.63	%		3.41	%		3.61	%⁽²⁾
Portfolio turnover rate			48	%		121	%		154	%		200	%		57	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the six months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY MORTGAGE SECURITIES FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.59

Income (loss) from investment operations:
Net investment income			0.24	⁽²⁾
Net realized and unrealized loss on investments			(0.20	)⁽²⁾

Total from investment operations			0.04

Less distributions from:
Net investment income			(0.24	)
Capital gains			(0.00	)

Total distributions			(0.24	)

Net asset value, end of period		$	10.39

Total return⁽³⁾			0.37	%
Net assets, end of period (in thousands)		$179
Ratio of expenses to average net assets			1.29	%⁽⁴⁾
Ratio of net investment income to average net assets			4.62	%⁽⁴⁾
Portfolio turnover rate			48	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY MORTGAGE SECURITIES FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	10.59

Income (loss) from investment operations:
Net investment income			0.31	⁽²⁾
Net realized and unrealized loss on investments			(0.20	)⁽²⁾

Total from investment operations			0.11

Less distributions from:
Net investment income			(0.31	)
Capital gains			(0.00	)

Total distributions			(0.31	)

Net asset value, end of period		$	10.39

Total return			1.00	%
Net assets, end of period (in thousands)		$256
Ratio of expenses to average net assets			0.79	%⁽³⁾
Ratio of net investment income to average net assets			5.13	%⁽³⁾
Portfolio turnover rate			48	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY MORTGAGE SECURITIES FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	10.59		$	10.44		$	10.68		$	10.96		$	10.87

Income (loss) from investment operations:
Net investment income			0.25			0.52			0.48			0.48			0.15
Net realized and unrealized gain (loss) on investments			(0.20	)		0.15			(0.24	)		(0.27	)		0.13

Total from investment operations			0.05			0.67			0.24			0.21			0.28

Less distributions from:
Net investment income			(0.25	)		(0.52	)		(0.48	)		(0.48	)		(0.15	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.04	)

Total distributions			(0.25	)		(0.52	)		(0.48	)		(0.49	)		(0.19	)

Net asset value, end of period		$	10.39		$	10.59		$	10.44		$	10.68		$	10.96

Total return			0.57	%		6.66	%		2.26	%		1.95	%		2.56	%
Net assets, end of period (in millions)		$12			$13			$7			$6			$3
Ratio of expenses to average net assets			1.01	%⁽²⁾		1.00	%		1.03	%		1.12	%		1.09	%⁽²⁾
Ratio of net investment income to average net assets			4.92	%⁽²⁾		5.04	%		4.53	%		4.41	%		4.38	%⁽²⁾
Portfolio turnover rate			48	%		121	%		154	%		200	%		57	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the six months ended March 31, 2004.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY PACIFIC OPPORTUNITIES FUND

Portfolio Highlights

On September 30, 2007, Ivy Pacific Opportunities Fund had net assets totaling
$666,587,513 invested in a diversified portfolio of:

94.57%		Foreign Common Stocks and Investment Funds
5.43%		Cash and Cash Equivalents

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

South Korea	$	21.67
China	$	20.22
Taiwan	$	10.89
Hong Kong	$	7.81
India	$	7.78
Singapore	$	7.42
Cayman Islands	$	6.52
Cash and Cash Equivalents	$	5.43
Bermuda	$	2.85
Malaysia	$	2.83
Other Pacific Basin ⁽¹⁾	$	2.57
Indonesia	$	2.52
Other ⁽²⁾	$	1.49

(1)Includes $1.63 Australia, $0.10 Philippines and $0.84 Thailand.

(2)Includes $0.36 Canada and $1.13 United Kingdom.

Sector Weightings

Financial Services Stocks	$	18.79
Raw Materials Stocks	$	11.57
Capital Goods Stocks	$	10.38
Business Equipment and Services Stocks	$	9.00
Technology Stocks	$	8.87
Utilities Stocks	$	7.79
Shelter Stocks	$	6.51
Multi-Industry Stocks	$	5.89
Cash and Cash Equivalents	$	5.43
Energy Stocks	$	5.38
Retail Stocks	$	4.58
Consumer Nondurables Stocks	$	3.30
Miscellaneous Stocks	$	2.51

The Investments of Ivy Pacific Opportunities Fund
September 30, 2007 (Unaudited)
COMMON STOCKS	Shares			Value


Australia - 1.63%
Rio Tinto Limited (A)		113,430	$	10,892,581

Bermuda - 2.85%
China Yurun Food Group Limited (A)		5,000,000		7,203,638
Enerchina Holdings Limited (A)*	56,718,000			3,210,240
REXCAPITAL Financial Holdings Limited (A)*	52,975,000			8,586,286
Wah Sang Gas Holdings Limited (A)(B)*		736,000		15,148
				19,015,312
Canada - 0.36%
Canadian Solar Inc.*		250,000		2,393,750

Cayman Islands - 6.25%
Agile Property Holdings Limited (A)		4,678,000		9,820,740
Heng Tai Consumables Group Limited (A)*	18,000,000			2,894,319
Shimao Property Holdings Limited (A)		2,167,500		6,594,078
Simcere Pharmaceutical Group*		350,000		5,575,500
Suntech Power Holdings Co., Ltd., ADR*		161,400		6,439,860
Tencent Holdings Limited (A)		1,600,000		10,332,075
				41,656,572
China - 20.22%
Acorn International, Inc., ADR*		127,700		2,640,836
Aluminum Corporation of China Limited (A)(D)		750,000		2,156,268
China BlueChemical Ltd., H Shares (A)		7,604,000		5,027,697
China Merchants Bank Co., Limited, H Shares (A)		1,329,500		5,840,404
China Merchants Bank Co., Limited, H Shares (A)(D)		2,000,000		8,785,865
China Mobile Limited (A)		1,277,500		20,919,589
China Oilfield Services Limited (A)		5,190,000		11,950,449
China Resources Power Holdings Company Limited (A)		2,500,000		7,766,422
China Shenhua Energy Company Limited, H Shares (A)		1,400,000		8,410,247
China Shenhua Energy Company Limited, H shares (A)(D)		1,200,000		7,208,783
Hunan Nonferrous Metals Corporation Limited (A)		8,204,000		8,463,770
PetroChina Company Limited, H Shares (A)		2,222,000		4,213,135
PetroChina Company Limited, H Shares (A)(C)		1,526,000		2,893,449
Ping An Insurance (Group) Company of China, Ltd., H Shares (A)		1,094,500		15,149,276
SINA Corporation*		67,000		3,207,960
Sino-Ocean Land Holdings Limited (A)(C)*		1,000,000		1,415,000
Sinopec Shanghai Petrochemical Company Limited (A)		7,000,000		5,735,897
Xinhua Finance Media, ADR*		598,100		4,581,446
Yingli Green Energy Holding Company Limited*		324,200		8,451,894
				134,818,387
Hong Kong - 7.81%
Bank of East Asia, Limited (The) (A)		1,178,600		6,610,233
Beijing Enterprises Holdings Limited (A)		1,538,000		7,814,789
CNOOC Limited (A)		6,000,000		10,079,948
Cheung Kong (Holdings) Limited (A)		450,000		7,421,033
China Aoyuan Property Group Limited (A)		300,000		200,673
Hang Lung Properties Limited (A)		1,651,000		7,390,778
Hutchison Whampoa Limited, Ordinary Shares (A)		498,000		5,326,666
Lee & Man Paper Manufacturing Limited (A)		1,658,000		7,198,171
				52,042,291
India - 7.78%
Ambuja Cements Limited (A)		1,699,734		6,163,789
Bharat Heavy Electricals Limited (A)		225,860		11,545,656
ICICI Bank Limited, ADR		200,000		10,544,000
Infosys Technologies Limited (A)		120,000		5,699,981
Reliance Industries Limited (A)		168,940		9,742,959
Satyam Computer Services Limited (A)		440,000		4,926,432
TATA POWER COMPANY LIMITED (THE) (A)		150,000		3,215,886
				51,838,703
Indonesia - 2.52%
PT Astra International Tbk (A)		2,866,000		6,032,860
PT Bank Rakyat Indonesia (A)		6,778,500		4,892,083
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk		120,000		5,858,400
				16,783,343
Malaysia - 2.83%
Bumiputra-Commerce Holdings Berhad (A)		1,356,000		4,258,019
Genting Berhad (A)		2,067,900		4,885,281
IOI Corporation Berhad (A)		1,748,950		3,105,252
LION DIVERSIFIED HOLDINGS BERHAD (A)		1,946,300		6,625,702
				18,874,254
Philippines - 0.10%
Vista Land & Lifescapes, Inc. (A)(D)*		6,000,000		679,245

Singapore - 7.42%
DBS Group Holdings Ltd (A)		626,000		9,102,390
K-REIT Asia (A)		1,205,940		2,183,762
Keppel Corporation Limited (A)		725,080		7,028,712
Keppel Land Limited (A)		1,426,000		7,967,553
SembCorp Industries Ltd (A)		1,424,000		6,182,969
Singapore Telecommunications Limited (A)		2,139,350		5,789,422
United Overseas Bank Limited (A)		365,000		5,430,158
Wilmar International Limited (A)		2,356,000		5,804,753
				49,489,719
South Korea - 21.67%
Daegu Bank, Ltd. (A)		443,300		8,210,156
Daelim Industrial Co., Ltd. (A)		55,000		10,186,298
Daewoo Shipbuilding & Marine Engineering Co., Ltd. (A)		106,240		6,721,259
Dongkuk Steel Mill Co., Ltd. (A)		140,450		7,412,298
ForHuman Co., Ltd. (A)*		194,760		5,990,487
GMARKET INC., ADR*		300,000		7,042,500
Hana Financial Group, Inc. (A)		100,000		4,714,816
Hyundai Department Store Co., Ltd. (A)		70,510		8,474,760
Hyundai Development Company - Engineering & Construction (A)		80,720		7,541,040
KCC Corporation (A)		11,340		6,926,420
Kookmin Bank (A)		138,140		11,501,604
Korea Investment Holdings Co., Ltd. (A)		37,650		2,476,541
Korea Tobacco & Ginseng Corporation (A)		67,710		5,289,844
Kyeryong Construction Industrial Co. Ltd (A)		102,500		6,215,855
LG Chem, Ltd. (A)		85,000		8,916,084
Lotte Shopping Co., Ltd. (A)		17,000		7,244,318
NHN Corporation (A)*		28,620		6,623,379
Samsung Corporation (A)		148,250		10,901,688
Samsung Electronics Co., Ltd. (A)		19,160		12,037,806
				144,427,153
Taiwan - 10.89%
Cathay Financial Holding Co., Ltd. (A)		2,145,662		5,075,689
Foxconn Technology Co., Ltd. (A)		557,635		6,458,895
Fubon Financial Holding Co., Ltd. (A)		5,573,000		4,755,877
Hon Hai Precision Ind. Co., Ltd. (A)*		1,219,200		9,190,231
MediaTek Incorporation (A)		539,700		9,724,026
Nan Ya Plastics Corporation (A)		2,496,000		6,500,996
TSRC Corporation (A)		3,195,000		5,482,458
Taiwan Fertilizer Co., Ltd. (A)		4,000,000		9,658,342
Taiwan Semiconductor Manufacturing Company Ltd. (A)		3,546,005		6,910,554
Wistron Corporation (A)		4,874,978		8,813,351
				72,570,419
Thailand - 0.84%
Advanced Info Service Public Company Limited (A)		961,500		2,496,674
PTT Public Company Limited (A)		315,000		3,087,965
				5,584,639
United Kingdom - 1.13%
Standard Chartered PLC (A)		231,500		7,534,169

TOTAL COMMON STOCKS - 94.30%			$	628,600,537

(Cost: $399,015,932)


INVESTMENT FUNDS - 0.27%


Multiple Industry
Vietnam Azalea Fund Limited (E)(F)*		500,000	$	1,777,000
(Cost: $1,900,000)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Commercial Paper
Banks - 0.82%
Lloyds TSB Bank PLC:
4.97%, 10-17-07	$	1,500	1,496,687
5.59%, 10-17-07		4,000	3,990,062
			5,486,749
Beverages - 0.52%
Coca-Cola Company (The),
4.82%, 10-12-07		3,500	3,494,845

Food and Related - 0.30%
Archer Daniels Midland Company,
5.1%, 11-6-07		2,000	1,989,800

Health Care - Drugs - 0.75%
GlaxoSmithKline Finance plc,
5.4%, 10-5-07	$	5,000		4,997,000

Health Care - General - 0.30%
Johnson & Johnson,
4.72%, 11-20-07		2,000		1,986,889

Household - General Products - 1.31%
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)):
5.2%, 10-9-07		5,000		4,994,222
4.8%, 10-17-07		3,750		3,742,000
				8,736,222
Mining - 0.74%
BHP Billiton Finance (USA) Limited (BHP Billiton Limited),
5.0%, 10-1-07		4,920		4,920,000

Security and Commodity Brokers - 0.45%
UBS Finance Delaware LLC (UBS AG),
5.52%, 10-15-07		3,000		2,993,560

Total Commercial Paper - 5.19%				34,605,065


Commercial Paper (backed by irrevocable bank letter of credit) - 0.45%
Finance Companies
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)),
5.0%, 10-2-07		3,000		2,999,584

TOTAL SHORT-TERM SECURITIES - 5.64%			$	37,604,649

(Cost: $37,604,649)

TOTAL INVESTMENT SECURITIES - 100.21%			$	667,982,186

(Cost: $438,520,581)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.21%)				(1,394,673	)


NET ASSETS - 100.00%			$	666,587,513

Notes to Schedule of Investments

The following written options were outstanding as of September 30, 2007. (See Note 6 to financial statements):

Underlying
Security

Contracts
Subject
to Call

Premium
Received

Market
Value

MSCI AC Asia Excluding Japan Index

321,429

1,476,002

6,615,009

Underlying
Security

Contracts
Subject
to Put

Premium
Received

Market
Value

MSCI AC Asia Excluding Japan Index

321,429

540,001

77,143

*No dividends were paid during the preceding 12 months.

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

(B)Security was valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees.

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $4,308,449 or 0.65% of net assets.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $18,830,161 or 2.82% of net assets.

(E)Deemed to be an affiliate due to the Fund having at least 5% of the voting securities.

(F)Restricted security. At September 30, 2007, the total value of restricted securities owned were:

	Security	Acquisition Date	Shares	Cost			Market Value

	Vietnam Azalea Fund Limited	8-3-07	500,000	$	1,900,000	$	1,777,000

The total market value of restricted securities represents approximately 0.27% of net assets at September 30, 2007.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY PACIFIC OPPORTUNITIES FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (cost - $438,521) (Notes 1 and 3)	$	667,982
Cash denominated in foreign currencies (cost - $7,188)		7,238
Receivables:
Fund shares sold		3,619
Investment securities sold		3,121
Dividends and interest		1,818
Prepaid and other assets		63

Total assets		683,841

LIABILITIES
Payable for investment securities purchased		7,904
Outstanding written options - at value (premium received - $2,016) (Note 6)		6,692
Payable to Fund shareholders		650
Accrued management fee (Note 2)		490
Due to custodian		361
Accrued service fee (Note 2)		234
Accrued shareholder servicing (Note 2)		173
Accrued distribution fee (Note 2)		42
Accrued accounting services fee (Note 2)		9
Accrued administrative fee (Note 2)		5
Other		693

Total liabilities		17,253

Total net assets	$	666,588

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	397,509
Accumulated undistributed income:
Accumulated undistributed net investment income		654
Accumulated undistributed net realized gain on investment transactions		44,048
Net unrealized appreciation in value of investments		224,377

Net assets applicable to outstanding units of capital	$	666,588

Net asset value per share (net assets divided by shares outstanding):
Class A	$23.18
Class B	$21.13
Class C	$21.47
Class E	$23.21
Class I	$23.42
Class Y	$23.37
Advisor Class	$22.73
Capital shares outstanding:
Class A		24,078
Class B		1,314
Class C		2,180
Class E		6
Class I		1,082
Class Y		356
Advisor Class		5

See Notes to Financial Statements.

Statement of Operations
      IVY PACIFIC OPPORTUNITIES FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                            (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $672)	$	6,038
Interest and amortization		366

Total income		6,404

Expenses (Note 2):
Investment management fee		2,615
Shareholder servicing:
Class A		730
Class B		65
Class C		62
Class E		––	*
Class I		11
Class Y		5
Advisor Class		––	*
Service fee:
Class A		525
Class B		29
Class C		48
Class Y		8
Custodian fee		283
Distribution fee:
Class A		33
Class B		87
Class C		145
Class E		––	*
Accounting services fee		50
Administrative fee		27
Audit fees		12
Legal fees		4
Other		156

Total expenses		4,895

Net investment income		1,509

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities	$	25,861
Realized net loss on foreign currency transactions		(177	)

Realized net gain on investments		25,684

Unrealized appreciation in value of securities during the period⁽¹⁾		148,015
Unrealized depreciation in value of written options during the period		(4,676	)
Unrealized appreciation in value of foreign currency exchange transactions during the period		49

Unrealized appreciation in value of investments during the period		143,388

Net gain on investments		169,072

Net increase in net assets resulting from operations	$	170,581

*Not shown due to rounding.
(1)Includes $123 in depreciation of affiliated security.

See Notes to Financial Statements.

Statement of Changes in Net Assets
IVY PACIFIC OPPORTUNITIES FUND
(In Thousands) (Unaudited)

				For the fiscal year ended March 31, 2007

INCREASE IN NET ASSETS
Operations:
Net investment income (loss)	$	1,509		$	(768	)
Realized net gain on investments		25,684			26,457
Unrealized appreciation		143,388			41,957

Net increase in net assets resulting from operations		170,581			67,646

Distributions to shareholders from (Note 1F):⁽¹⁾
Net investment income:
Class A		(––	)		(189	)
Class B		(––	)		(––	)
Class C		(––	)		(––	)
Class E		(––	)		NA
Class I		(––	)		NA
Class Y		(––	)		(18	)
Advisor Class		(––	)		(––	)*
Realized gains on investment transactions:
Class A		(––	)		(11,514	)
Class B		(––	)		(669	)
Class C		(––	)		(1,077	)
Class E		(––	)		NA
Class I		(––	)		NA
Class Y		(––	)		(239	)
Advisor Class		(––	)		(3	)

		(––	)		(13,709	)

Capital share transactions (Note 5)		58,877			159,167

Total increase		229,458			213,104
NET ASSETS
Beginning of period		437,130			224,026

End of period	$	666,588		$	437,130

Undistributed net investment income (loss)	$	654		$	(678	)

*Not shown due to rounding.
(1)See "Financial Highlights" on pages 239 - 245.

See Notes to Financial Statements.

Financial Highlights
      IVY PACIFIC OPPORTUNITIES FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003				2002

Net asset value, beginning of period		$	16.91		$	14.32		$	10.61		$	9.55		$	9.11		$	5.96			$	6.72

Income (loss) from investment operations:
Net investment income (loss)			0.06		(0.02		)		0.02	⁽¹⁾	(0.07		)		0.00		(0.02		)			0.01	⁽¹⁾
Net realized and unrealized gain (loss) on investments			6.21			3.23			3.83	⁽¹⁾		1.13			0.44			3.17			(0.77		)⁽²⁾

Total from investment operations			6.27			3.21			3.85			1.06			0.44			3.15			(0.76		)

Less distributions from:
Net investment income		(0.00		)	(0.01		)	(0.04		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.61		)	(0.10		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Total distributions		(0.00		)	(0.62		)	(0.14		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Net asset value, end of period		$	23.18		$	16.91		$	14.32		$	10.61		$	9.55		$	9.11			$	5.96

Total return⁽³⁾			37.08	%		22.60	%		36.51	%		11.10	%		4.83	%	52.85		%	-11.31			%⁽²⁾
Net assets, end of period (in millions)		$558			$375			$191			$64			$29			$18				$5
Ratio of expenses to average net assets including reimbursement			1.77	%⁽⁴⁾		1.84	%		1.95	%		2.22	%		2.07	%⁽⁴⁾		2.64	%			2.21	%
Ratio of net investment income (loss) to average net assets including reimbursement			0.66	%⁽⁴⁾		-0.14	%		0.24	%		-0.80	%	-1.07		%⁽⁴⁾	-0.39		%			0.20	%
Ratio of expenses to average net assets excluding reimbursement			1.77	%⁽⁴⁾⁽⁵⁾		1.84	%⁽⁵⁾		1.95	%⁽⁵⁾		2.22	%⁽⁵⁾		2.07	%⁽⁴⁾⁽⁵⁾		2.73	%			3.52	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			0.66	%⁽⁴⁾⁽⁵⁾		-0.14	%⁽⁵⁾		0.24	%⁽⁵⁾		-0.80	%⁽⁵⁾	-1.07		%⁽⁴⁾⁽⁵⁾	-0.48		%		-1.11		%
Portfolio turnover rate			42	%		74	%		87	%		87	%		61	%		187	%			16	%

(1)Based on average shares outstanding.

(2)Includes redemption fees added to capital.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY PACIFIC OPPORTUNITIES FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003				2002

Net asset value, beginning of period		$	15.49		$	13.29		$	9.91		$	9.01		$	8.61		$	5.75			$	6.56

Income (loss) from investment operations:
Net investment loss		(0.02		)	(0.07		)	(0.06		)⁽¹⁾	(0.13		)	(0.04		)	(0.06		)		(0.04		)⁽¹⁾
Net realized and unrealized gain (loss) on investments			5.66			2.88			3.54	⁽¹⁾		1.03			0.44			2.92			(0.77		)

Total from investment operations			5.64			2.81			3.48			0.90			0.40			2.86			(0.81		)

Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.61		)	(0.10		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Total distributions		(0.00		)	(0.61		)	(0.10		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Net asset value, end of period		$	21.13		$	15.49		$	13.29		$	9.91		$	9.01		$	8.61			$	5.75

Total return			36.41	%		21.33	%		35.26	%		9.99	%		4.65	%	49.74		%	-12.35			%
Net assets, end of period (in millions)		$28			$20			$11			$6			$6			$6				$3
Ratio of expenses to average net assets including reimbursement			2.77	%⁽²⁾		2.88	%		2.91	%		3.06	%		2.86	%⁽²⁾		3.46	%			2.96	%
Ratio of net investment loss to average net assets including reimbursement			-0.33	%⁽²⁾		-1.15	%		-0.51	%	-1.57		%	-1.92		%⁽²⁾	-1.15		%		-0.55		%
Ratio of expenses to average net assets excluding reimbursement			2.77	%⁽²⁾⁽³⁾		2.88	%⁽³⁾		2.91	%⁽³⁾		3.06	%⁽³⁾		2.86	%⁽²⁾⁽³⁾		3.55	%			4.27	%
Ratio of net investment loss to average net assets excluding reimbursement			-0.33	%⁽²⁾⁽³⁾		-1.15	%⁽³⁾		-0.51	%⁽³⁾		-1.57	%⁽³⁾	-1.92		%⁽²⁾⁽³⁾	-1.24		%		-1.86		%
Portfolio turnover rate			42	%		74	%		87	%		87	%		61	%		187	%			16	%

(1)Based on average shares outstanding.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY PACIFIC OPPORTUNITIES FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	15.73		$	13.45		$	10.01		$	9.09		$	8.68		$	5.75		$	6.55

Income (loss) from investment operations:
Net investment loss		(0.00		)	(0.08		)	(0.06		)⁽¹⁾	(0.09		)	(0.02		)	(0.05		)	(0.03		)⁽¹⁾
Net realized and unrealized gain (loss) on investments			5.74			2.97			3.60	⁽¹⁾		1.01			0.43			2.98		(0.77		)

Total from investment operations			5.74			2.89			3.54			0.92			0.41			2.93		(0.80		)

Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(0.61		)	(0.10		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)

Total distributions		(0.00		)	(0.61		)	(0.10		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)

Net asset value, end of period		$	21.47		$	15.73		$	13.45		$	10.01		$	9.09		$	8.68		$	5.75

Total return			36.56	%		21.68	%		35.51	%	10.12		%		4.72	%	50.96		%	-12.21		%
Net assets, end of period (in millions)		$47			$34			$18			$7			$3			$2			$1
Ratio of expenses to average net assets including reimbursement			2.51	%⁽²⁾		2.60	%		2.75	%		3.06	%		2.57	%⁽²⁾		3.48	%		2.94	%
Ratio of net investment loss to average net assets including reimbursement			-0.07	%⁽²⁾		-0.87	%	-0.50		%	-1.68		%	-1.59		%⁽²⁾	-1.14		%	-0.53		%
Ratio of expenses to average net assets excluding reimbursement			2.51	%⁽²⁾⁽³⁾		2.60	%⁽³⁾		2.75	%⁽³⁾		3.06	%⁽³⁾		2.57	%⁽²⁾⁽³⁾		3.57	%		4.25	%
Ratio of net investment loss to average net assets excluding reimbursement			-0.07	%⁽²⁾⁽³⁾		-0.87	%⁽³⁾		-0.50	%⁽³⁾		-1.68	%⁽³⁾	-1.59		%⁽²⁾⁽³⁾	-1.23		%	-1.84		%
Portfolio turnover rate			42	%		74	%		87	%		87	%		61	%		187	%		16	%

(1)Based on average shares outstanding.

(2)Annualized.

(3)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY PACIFIC OPPORTUNITIES FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                           (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	16.91

Income from investment operations:
Net investment income			0.14	⁽²⁾
Net realized and unrealized gain on investments			6.16	⁽²⁾

Total from investment operations			6.30

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	23.21

Total return⁽³⁾			37.50	%
Net assets, end of period (in thousands)		$137
Ratio of expenses to average net assets			1.45	%⁽⁴⁾
Ratio of net investment income to average net assets			1.01	%⁽⁴⁾
Portfolio turnover rate			42	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY PACIFIC OPPORTUNITIES FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                           (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	17.03

Income from investment operations:
Net investment income			0.11	⁽²⁾
Net realized and unrealized gain on investments			6.28	⁽²⁾

Total from investment operations			6.39

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	23.42

Total return			37.77	%
Net assets, end of period (in millions)		$25
Ratio of expenses to average net assets			1.34	%⁽³⁾
Ratio of net investment income to average net assets			0.87	%⁽³⁾
Portfolio turnover rate			42	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY PACIFIC OPPORTUNITIES FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the fiscal period ended				For the period from 7-24-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04				12-31-03

Net asset value, beginning of period		$	17.03		$	14.41		$	10.67		$	9.58			$	9.13			$	6.85

Income (loss) from investment operations:
Net investment income (loss)			0.07			0.02			0.04	⁽²⁾	(0.04		)		(0.00		)		(0.01		)
Net realized and unrealized gain on investments			6.27			3.26			3.87	⁽²⁾		1.13				0.45				2.29

Total from investment operations			6.34			3.28			3.91			1.09				0.45				2.28

Less distributions from:
Net investment income		(0.00		)	(0.05		)	(0.07		)	(0.00		)		(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.61		)	(0.10		)	(0.00		)		(0.00		)		(0.00		)

Total distributions		(0.00		)	(0.66		)	(0.17		)	(0.00		)		(0.00		)		(0.00		)

Net asset value, end of period		$	23.37		$	17.03		$	14.41		$	10.67			$	9.58			$	9.13

Total return			37.23	%		22.95	%		36.90	%		11.38	%			4.93	%		33.28		%
Net assets, end of period (in thousands)		$8,329			$8,101			$3,790			$1,100				$707				$497
Ratio of expenses to average net assets including reimbursement			1.56	%⁽³⁾		1.58	%		1.68	%		1.88	%			1.64	%⁽³⁾			2.01	%⁽³⁾
Ratio of net investment income (loss) to average net assets including reimbursement			0.84	%⁽³⁾		0.11	%		0.46	%		-0.47	%		-0.68		%⁽³⁾		-0.40		%⁽³⁾
Ratio of expenses to average net assets excluding reimbursement			1.56	%⁽³⁾⁽⁴⁾		1.58	%⁽⁴⁾		1.68	%⁽⁴⁾		1.88	%⁽⁴⁾			1.64	%⁽³⁾⁽⁴⁾			2.18	%⁽³⁾
Ratio of net investment income (loss) to average net assets excluding reimbursement			0.84	%⁽³⁾⁽⁴⁾		0.11	%⁽⁴⁾		0.46	%⁽⁴⁾		-0.47	%⁽⁴⁾		-0.68		%⁽³⁾⁽⁴⁾		-0.57		%⁽³⁾
Portfolio turnover rate			42	%		74	%		87	%		87	%			61	%			187	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)There was no waiver of expenses during the period.

(5)For the 12 months ended December 31, 2003.

See Notes to Financial Statements.

Financial Highlights
      IVY PACIFIC OPPORTUNITIES FUND
      Advisor Class Shares⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended December 31,
	9-30-07				2007			2006			2005		3-31-04				2003				2002

Net asset value, beginning of period		$	16.54		$	14.01		$	10.38		$	9.28		$	8.85		$	5.81			$	6.59

Income (loss) from investment operations:
Net investment income (loss)			0.11			0.09			0.14	⁽²⁾		(0.01	)	(0.01		)	(0.01		)			0.04	⁽²⁾
Net realized and unrealized gain (loss) on investments			6.08			3.15			3.70	⁽²⁾		1.11			0.44			3.05			(0.82		)

Total from investment operations			6.19			3.24			3.84			1.10			0.43			3.04			(0.78		)

Less distributions from:
Net investment income		(0.00		)	(0.10		)	(0.11		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.61		)	(0.10		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Total distributions		(0.00		)	(0.71		)	(0.21		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)

Net asset value, end of period		$	22.73		$	16.54		$	14.01		$	10.38		$	9.28		$	8.85			$	5.81

Total return			37.42	%		23.33	%		37.28	%		11.85	%		4.86	%	52.32		%	-11.84			%
Net assets, end of period (in thousands)		$122			$89			$76			$64			$58			$55				$34
Ratio of expenses to average net assets including reimbursement			1.24	%⁽³⁾		1.28	%		1.42	%		1.56	%		1.82	%⁽³⁾		2.49	%			1.74	%
Ratio of net investment income (loss) to average net assets including reimbursement			1.20	%⁽³⁾		0.55	%		1.12	%	-0.06		%	-0.88		%⁽³⁾	-0.09		%			0.67	%
Ratio of expenses to average net assets excluding reimbursement			1.24	%⁽³⁾⁽⁴⁾		1.28	%⁽⁴⁾		1.42	%⁽⁴⁾		1.56	%⁽⁴⁾		1.82	%⁽³⁾⁽⁴⁾		2.65	%			3.05	%
Ratio of net investment income (loss) to average net assets excluding reimbursement			1.20	%⁽³⁾⁽⁴⁾		0.55	%⁽⁴⁾		1.12	%⁽⁴⁾		-0.06	%⁽⁴⁾	-0.88		%⁽³⁾⁽⁴⁾	-0.25		%		-0.64		%
Portfolio turnover rate			42	%		74	%		87	%		87	%		61	%		187	%			16	%

(1)See Note 5 to financial statements.

(2)Based on average shares outstanding.

(3)Annualized.

(4)There was no waiver of expenses during the period.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY REAL ESTATE SECURITIES FUND

Portfolio Highlights

On September 30, 2007, Ivy Real Estate Securities Fund had net assets totaling
$532,314,297 invested in a diversified portfolio of:

94.27%		Domestic Common Stocks
3.24%		Foreign Common Stocks
2.49%		Cash and Cash Equivalents

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:


Shelter Stocks	$	89.10
Business Equipment and Services Stocks	$	3.58
Consumer Services Stocks	$	2.65
Cash and Cash Equivalents	$	2.49
Miscellaneous Stocks	$	2.18

The Investments of Ivy Real Estate Securities Fund
September 30, 2007 (Unaudited)
COMMON STOCKS	Shares			Value


Business Equipment and Services - 3.58%
Brookfield Properties Corporation		692,000	$	17,230,800
CB Richard Ellis Group, Inc., Class A*		64,700		1,801,248
				19,032,048
Health Care - General - 0.32%
Brookdale Senior Living, Inc.		42,700		1,699,887

Hotels and Gaming - 2.65%
Hilton Hotels Corporation		185,800		8,637,842
Marriott International, Inc., Class A		42,200		1,834,434
Starwood Hotels & Resorts Worldwide, Inc.		59,600		3,620,700
				14,092,976
Multiple Industry - 1.45%
Forest City Enterprises, Inc., Class A		101,278		5,586,494
Macquarie Infrastructure Company Trust		55,800		2,153,322
				7,739,816
Real Estate Investment Trust - 89.10%
AMB Property Corporation		188,600		11,280,166
Acadia Realty Trust		101,300		2,748,269
Alexandria Real Estate Equities, Inc.		67,900		6,536,054
American Campus Communities, Inc.		174,500		5,111,105
Archstone-Smith Trust		357,100		21,475,994
Associated Estates Realty Corporation		133,000		1,734,320
AvalonBay Communities, Inc.		148,100		17,484,686
BRE Properties, Inc., Class A		55,000		3,076,150
BioMed Realty Trust, Inc.		322,012		7,760,489
Boston Properties, Inc.		206,400		21,444,960
Brandywine Realty Trust		301,700		7,636,027
Camden Property Trust		165,500		10,633,375
Corporate Office Properties Trust		190,500		7,930,515
DCT Industrial Trust Inc.		459,600		4,812,012
Developers Diversified Realty Corporation		220,300		12,308,161
Digital Realty Trust, Inc.		142,500		5,613,075
Douglas Emmett, Inc.		119,400		2,952,762
EastGroup Properties, Inc.		68,300		3,091,258
Equity Inns, Inc.		93,500		2,111,230
Equity Lifestyle Properties, Inc.		41,800		2,165,240
Equity Residential		413,600		17,520,096
Essex Property Trust, Inc.		91,000		10,698,870
Extra Space Storage Inc.		161,200		2,480,868
Federal Realty Investment Trust		103,700		9,187,820
General Growth Properties, Inc.		251,432		13,481,784
Gramercy Capital Corp.		55,000		1,384,350
Health Care REIT, Inc.		81,800		3,618,832
Healthcare Realty Trust Incorporated		42,700		1,138,382
Hersha Hospitality Trust		195,600		1,936,440
Home Properties, Inc.		70,500		3,678,690
Hospitality Properties Trust		50,400		2,048,760
Host Hotels & Resorts, Inc.		899,447		20,183,591
Kilroy Realty Corporation		108,800		6,596,544
Kimco Realty Corporation		339,000		15,326,190
Kite Realty Group Trust		100,500		1,889,400
LaSalle Hotel Properties		71,600		3,012,928
Liberty Property Trust		137,900		5,544,959
Macerich Company (The)		139,800		12,243,684
Maguire Properties, Inc.		201,300		5,199,579
Mid-America Apartment Communities, Inc.		67,500		3,364,875
National Retail Properties, Inc.		71,800		1,750,484
Nationwide Health Properties, Inc.		122,500		3,690,925
PS Business Parks, Inc.		71,900		4,087,515
ProLogis		541,465		35,926,203
Public Storage, Inc.		254,600		20,024,290
Regency Centers Corporation		114,800		8,810,900
SL Green Realty Corp.		112,400		13,124,948
Simon Property Group, Inc.		402,200		40,220,000
Tanger Factory Outlet Centers, Inc.		86,700		3,519,153
Taubman Centers, Inc.		142,500		7,801,875
Ventas, Inc.		168,300		6,967,620
Vornado Realty Trust		249,600		27,293,760
Weingarten Realty Investors		63,600		2,636,856
				474,297,019
Utilities - Telephone - 0.41%
Crown Castle International Corp.*		54,200		2,202,146

TOTAL COMMON STOCKS - 97.51%			$	519,063,892

(Cost: $388,911,445)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Finance Companies - 0.90%
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)),
5.0%, 10-2-07	$	2,000	$	1,999,722
Prudential Funding LLC,
5.15%, 10-11-07		2,800		2,795,995
				4,795,717
Household - General - 0.56%
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)),
4.8%, 10-17-07		3,000		2,993,600

Mining - 0.31%
BHP Billiton Finance (USA) Limited (BHP Billiton Limited),
5.1%, 10-1-07		1,612		1,612,000

Retail - General Merchandise - 0.56%
Target Corporation,
5.0%, 10-19-07		3,000		2,992,500

TOTAL SHORT-TERM SECURITIES - 2.33%			$	12,393,817

(Cost: $12,393,817)

TOTAL INVESTMENT SECURITIES - 99.84%			$	531,457,709

(Cost: $401,305,262)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.16%				856,588


NET ASSETS - 100.00%			$	532,314,297

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY REAL ESTATE SECURITIES FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                                        (Unaudited)

ASSETS
Investment securities - at value (cost - $401,305) (Notes 1 and 3)	$	531,458
Cash		15
Receivables:
Dividends and interest		1,841
Investment securities sold		997
Fund shares sold		551
Prepaid and other assets		44

Total assets		534,906

LIABILITIES
Payable for investment securities purchased		900
Payable to Fund shareholders		886
Accrued management fee (Note 2)		385
Accrued shareholder servicing (Note 2)		174
Accrued service fee (Note 2)		117
Accrued distribution fee (Note 2)		22
Accrued accounting services fee (Note 2)		12
Other		96

Total liabilities		2,592

Total net assets	$	532,314

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	377,591
Accumulated undistributed income:
Accumulated undistributed net investment income		26
Accumulated undistributed net realized gain on investment transactions		24,545
Net unrealized appreciation in value of investments		130,152

Net assets applicable to outstanding units of capital	$	532,314

Net asset value per share (net assets divided by shares outstanding):
Class A	$24.20
Class B	$23.91
Class C	$24.02
Class E	$24.14
Class I	$24.30
Class R	$24.21
Class Y	$24.22
Capital shares outstanding:
Class A		13,729
Class B		742
Class C		785
Class E		16
Class I		62
Class R		7
Class Y		6,664

See Notes to Financial Statements.

Statement of Operations
      IVY REAL ESTATE SECURITIES FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                                        (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $36)	$	5,639
Interest and amortization		108

Total income		5,747

Expenses (Note 2):
Investment management fee		2,751
Shareholder servicing:
Class A		686
Class B		61
Class C		49
Class E		2
Class I		1
Class R		––	*
Class Y		156
Service fee:
Class A		430
Class B		25
Class C		28
Class R		––	*
Class Y		257
Distribution fee:
Class A		21
Class B		74
Class C		85
Class E		––	*
Class R		––	*
Accounting services fee		84
Custodian fees		22
Audit fees		15
Legal fees		7
Other		162

Total expenses		4,916

Net investment income		831

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		5,760
Unrealized depreciation in value of investments during the period		(60,404	)

Net loss on investments		(54,644	)

Net decrease in net assets resulting from operations	$	(53,813	)

*Not shown due to rounding

See Notes to Financial Statements.

Statement of Changes in Net Assets
IVY REAL ESTATE SECURITIES FUND
(In Thousands) (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	831		$	3,791
Realized net gain on investments			5,760			36,618
Unrealized appreciation (depreciation)			(60,404	)		57,001

Net increase (decrease) in net assets resulting from operations			(53,813	)		97,410

Distributions to shareholders from (Note 1F):⁽¹⁾
Net investment income:
Class A			(579	)		(1,898	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)*		NA
Class I			(6	)		NA
Class R			(––	)*		(1	)
Class Y			(514	)		(1,896	)
Realized gains on investment transactions:
Class A			(––	)		(13,023	)
Class B			(––	)		(719	)
Class C			(––	)		(855	)
Class E			(––	)		NA
Class I			(––	)		NA
Class R			(––	)		(5	)
Class Y			(––	)		(9,462	)

			(1,099	)		(27,859	)

Capital share transactions (Note 5)		(120,550		)		134,609

Total increase (decrease)		(175,462		)		204,160
NET ASSETS
Beginning of period			707,776			503,616

End of period		$	532,314		$	707,776

Undistributed net investment income		$	26		$	294

*Not shown due to rounding.

(1)See "Financial Highlights" on pages 253 - 258.

See Notes to Financial Statements.

Financial Highlights
      IVY REAL ESTATE SECURITIES FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                      (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended July 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	26.14		$	23.11		$	18.13		$	16.99		$	13.42		$	11.93		$	11.67

Income (loss) from investment operations:
Net investment income			0.04			0.10			0.15			0.15	⁽¹⁾		0.62			0.48			0.32
Net realized and unrealized gain (loss) on investments			(1.94	)		4.05			5.81			1.93	⁽¹⁾		3.38			1.72			1.01

Total from investment operations			(1.90	)		4.15			5.96			2.08			4.00			2.20			1.33

Less distributions from:
Net investment income			(0.04	)		(0.15	)		(0.18	)		(0.25	)		(0.24	)		(0.48	)		(0.28	)
Capital gains			(0.00	)		(0.97	)		(0.80	)		(0.69	)		(0.19	)		(0.23	)		(0.79	)

Total distributions			(0.04	)		(1.12	)		(0.98	)		(0.94	)		(0.43	)		(0.71	)		(1.07	)

Net asset value, end of period		$	24.20		$	26.14		$	23.11		$	18.13		$	16.99		$	13.42		$	11.93

Total return⁽²⁾			-7.23	%		18.09	%		33.53	%		12.09	%		29.78	%		19.65	%		12.31	%
Net assets, end of period (in millions)		$332			$395			$256			$155			$44			$60			$32
Ratio of expenses to average net assets including voluntary expense waiver			1.63	%⁽³⁾		1.57	%		1.64	%		1.67	%		1.48	%⁽³⁾⁽⁴⁾		1.46	%		1.50	%
Ratio of net investment income to average net assets including voluntary expense waiver			0.19	%⁽³⁾		0.54	%		0.91	%		0.95	%		4.35	%⁽³⁾⁽⁴⁾		2.95	%		2.83	%
Ratio of expenses to average net assets excluding voluntary expense waiver			1.63	%⁽³⁾⁽⁵⁾		1.57	%⁽⁵⁾		1.64	%⁽⁵⁾		1.67	%⁽⁵⁾		1.49	%⁽³⁾⁽⁴⁾		1.46	%⁽⁵⁾		1.69	%
Ratio of net investment income to average net assets excluding voluntary expense waiver			0.19	%⁽³⁾⁽⁵⁾		0.54	%⁽⁵⁾		0.91	%⁽⁵⁾		0.95	%⁽⁵⁾		4.34	%⁽³⁾⁽⁴⁾		2.95	%⁽⁵⁾		2.64	%
Portfolio turnover rate			4	%		35	%		35	%		48	%		35	%		48	%		101	%

(1)Based on average weekly shares outstanding.

(2)Total return calculated without taking into account the sales load deducted on an initial purchase.

(3)Annualized.

(4)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that includes the effect of income and expenses for those Class B and Class C shares from August 1, 2003 up to the time of merger. Actual expenses that applied to Class A shareholders were lower than shown above.

(5)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY REAL ESTATE SECURITIES FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	25.91		$	23.00		$	18.08		$	16.97			$	15.18

Income (loss) from investment operations:
Net investment income (loss)			(0.11	)		(0.09	)		0.01			(0.07	)⁽²⁾			0.07
Net realized and unrealized gain (loss) on investments			(1.89	)		3.97			5.72			1.95	⁽²⁾			2.08

Total from investment operations			(2.00	)		3.88			5.73			1.88				2.15

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.01	)		(0.08	)			(0.17	)
Capital gains			(0.00	)		(0.97	)		(0.80	)		(0.69	)			(0.19	)

Total distributions			(0.00	)		(0.97	)		(0.81	)		(0.77	)			(0.36	)

Net asset value, end of period		$	23.91		$	25.91		$	23.00		$	18.08			$	16.97

Total return			-7.72	%		16.93	%		32.19	%		10.91	%			14.46	%
Net assets, end of period (in millions)		$18			$22			$15			$10				$2
Ratio of expenses to average net assets			2.63	%⁽³⁾		2.57	%		2.66	%		2.73	%			3.02	%⁽³⁾
Ratio of net investment income (loss) to average net assets			-0.79	%⁽³⁾		-0.42	%		0.01	%		-0.24	%			-5.40	%⁽³⁾
Portfolio turnover rate			4	%		35	%		35	%		48	%			35	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the eight months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY REAL ESTATE SECURITIES FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	26.01		$	23.04		$	18.10		$	16.99			$	15.18

Income (loss) from investment operations:
Net investment income (loss)			(0.08	)		(0.06	)		0.03			0.12				0.08
Net realized and unrealized gain (loss) on investments			(1.91	)		4.00			5.73			1.82				2.09

Total from investment operations			(1.99	)		3.94			5.76			1.94				2.17

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.02	)		(0.14	)			(0.17	)
Capital gains			(0.00	)		(0.97	)		(0.80	)		(0.69	)			(0.19	)

Total distributions			(0.00	)		(0.97	)		(0.82	)		(0.83	)			(0.36	)

Net asset value, end of period		$	24.02		$	26.01		$	23.04		$	18.10			$	16.99

Total return			-7.65	%		17.17	%		32.38	%		11.21	%			14.59	%
Net assets, end of period (in millions)			$19			$26			$17			$10				$2
Ratio of expenses to average net assets			2.44	%⁽²⁾		2.39	%		2.46	%		2.49	%			2.82	%⁽²⁾
Ratio of net investment income (loss) to average net assets			-0.51	%⁽²⁾		-0.28	%		0.15	%		0.14	%		-4.46		%⁽²⁾
Portfolio turnover rate			4	%		35	%		35	%		48	%			35	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3) For the eight months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY REAL ESTATE SECURITIES FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                                        (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	26.14

Loss from investment operations:
Net investment loss			(0.15	)⁽²⁾
Net realized and unrealized loss on investments			(1.83	)⁽²⁾

Total from investment operations			(1.98	)

Less distributions from:
Net investment income			(0.02	)
Capital gains			(0.00	)

Total distributions			(0.02	)

Net asset value, end of period		$	24.14

Total return⁽³⁾			-8.34	%
Net assets, end of period (in thousands)		$396
Ratio of expenses to average net assets			2.56	%⁽⁴⁾
Ratio of net investment loss to average net assets			-1.25	%⁽⁴⁾
Portfolio turnover rate			4	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY REAL ESTATE SECURITIES FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                                         (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	26.15

Income (loss) from investment operations:
Net investment income			0.07	⁽²⁾
Net realized and unrealized loss on investments			(1.83	)⁽²⁾

Total from investment operations			(1.76	)

Less distributions from:
Net investment income			(0.09	)
Capital gains			(0.00	)

Total distributions			(0.09	)

Net asset value, end of period		$	24.30

Total return			-7.55	%
Net assets, end of period (in millions)		$2
Ratio of expenses to average net assets			1.16	%⁽³⁾
Ratio of net investment income to average net assets			0.58	%⁽³⁾
Portfolio turnover rate			4	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY REAL ESTATE SECURITIES FUND
      Class R Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended				For the period from 12-29-05⁽¹⁾ to
	9-30-07				3-31-07				3-31-06

Net asset value, beginning of period		$	26.14			$	23.11			$	20.55

Income (loss) from investment operations:
Net investment income (loss)			0.03				0.15				(0.20	)
Net realized and unrealized gain (loss) on investments			(1.93	)			3.98				2.79

Total from investment operations			(1.90	)			4.13				2.59

Less distributions from:
Net investment income			(0.03	)			(0.13	)			(0.03	)
Capital gains			(0.00	)			(0.97	)			(0.00	)

Total distributions			(0.03	)			(1.10	)			(0.03	)

Net asset value, end of period		$	24.21			$	26.14			$	23.11

Total return			-7.28	%			17.98	%			12.59	%
Net assets, end of period (in thousands)		$166				$158				$113
Ratio of expenses to average net assets			1.68	%⁽²⁾			1.68	%			1.73	%⁽²⁾
Ratio of net investment income (loss) to average net assets			0.05	%⁽²⁾			0.43	%			-3.64	%⁽²⁾
Portfolio turnover rate			4	%			35	%			35	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the 12 months ended March 31, 2006.

See Notes to Financial Statements.

Financial Highlights
      IVY REAL ESTATE SECURITIES FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                     (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	26.15		$	23.12		$	18.14		$	16.99			$	15.18

Income (loss) from investment operations:
Net investment income			0.12			0.23			0.27			0.26	⁽²⁾			0.04
Net realized and unrealized gain (loss) on investments			(1.98	)		3.97			5.75			1.87	⁽²⁾			2.15

Total from investment operations			(1.86	)		4.20			6.02			2.13				2.19

Less distributions from:
Net investment income			(0.07	)		(0.20	)		(0.24	)		(0.29	)			(0.19	)
Capital gains			(0.00	)		(0.97	)		(0.80	)		(0.69	)			(0.19	)

Total distributions			(0.07	)		(1.17	)		(1.04	)		(0.98	)			(0.38	)

Net asset value, end of period		$	24.22		$	26.15		$	23.12		$	18.14			$	16.99

Total return			-7.12	%		18.32	%		33.86	%		12.40	%			14.78	%
Net assets, end of period (in millions)		$161			$265			$216			$148				$91
Ratio of expenses to average net assets			1.38	%⁽³⁾		1.37	%		1.39	%		1.44	%			1.60	%⁽³⁾
Ratio of net investment income to average net assets			0.60	%⁽³⁾		0.94	%		1.27	%		1.59	%			0.14	%⁽³⁾
Portfolio turnover rate			4	%		35	%		35	%		48	%			35	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the eight months ended March 31, 2004.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY SMALL CAP VALUE FUND

Portfolio Highlights

On September 30, 2007, Ivy Small Cap Value Fund had net assets totaling
$162,383,365 invested in a diversified portfolio of:

86.25%		Domestic Common Stocks
9.88%		Foreign Common Stocks
3.87%		Cash and Cash Equivalents

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:

Financial Services Stocks	$	17.79
Retail Stocks	$	11.18
Technology Stocks	$	10.80
Consumer Services Stocks	$	9.36
Consumer Nondurables Stocks	$	7.84
Business Equipment and Services Stocks	$	7.36
Health Care Stocks	$	7.19
Capital Goods Stocks	$	7.03
Shelter Stocks	$	6.37
Energy Stocks	$	4.39
Cash and Cash Equivalents	$	3.87
Transporation Stocks	$	2.33
Utilities Stocks	$	2.25
Raw Materials Stocks	$	2.24

The Investments of Ivy Small Cap Value
September 30, 2007 (Unaudited)
COMMON STOCKS	Shares			Value


Air Transportation - 0.88%
ABX Air, Inc.*		201,884	$	1,428,329

Aircraft - 1.50%
Orbital Sciences Corporation*		109,600		2,437,504

Apparel - 1.75%
Albany International Corp., Class A		27,000		1,012,230
Fossil, Inc.*		49,000		1,829,170
				2,841,400
Banks - 9.62%
Boston Private Financial Holdings, Inc.		30,400		845,880
Cathay General Bancorp		61,698		1,986,676
Columbia Banking System, Inc.		23,212		737,561
First Midwest Bancorp, Inc.		60,700		2,071,084
First Niagara Financial Group, Inc.		190,300		2,693,696
KBW, Inc.*		78,500		2,259,230
Sterling Bancshares, Inc.		126,915		1,446,196
Umpqua Holdings Corporation		49,066		980,829
United Bankshares, Inc.		47,970		1,459,008
Wintrust Financial Corporation		26,811		1,144,830
				15,624,990
Broadcasting - 0.90%
Belo Corp., Class A		57,300		994,728
Outdoor Channel Holdings, Inc.*		50,900		459,882
				1,454,610
Business Equipment and Services - 6.90%
Brink's Company (The)		60,600		3,386,328
Great Lakes Dredge & Dock Corporation*		101,600		889,000
H&E Equipment Services, Inc.*		50,900		915,691
Heidrick & Struggles International, Inc.*		52,700		1,918,807
SkillSoft Public Limited Company*		114,800		1,030,904
Waste Connections, Inc.*		71,350		2,266,076
Watson Wyatt & Company Holdings, Inc., Class A		17,900		804,426
				11,211,232
Capital Equipment - 4.07%
Actuant Corporation, Class A*		14,200		922,574
Astec Industries, Inc.*		25,100		1,441,242
Chart Industries, Inc.*		54,400		1,752,224
Goodman Global, Inc.*		104,139		2,486,839
				6,602,879
Chemicals - Specialty - 1.72%
H.B. Fuller Company		94,100		2,792,888

Communications Equipment - 1.61%
Dycom Industries, Inc.*		85,229		2,610,564

Computers - Micro - 0.39%
Tech Data Corporation*		15,600		625,482

Computers - Peripherals - 3.76%
Electronics for Imaging, Inc.*		87,000		2,334,645
Epicor Software Corporation*		45,100		620,351
Lawson Software, Inc.*		225,000		2,251,125
Mentor Graphics Corporation*		60,000		906,600
				6,112,721
Construction Materials - 1.55%
Texas Industries, Inc.		32,100		2,519,850

Containers - 1.98%
Silgan Holdings Inc.		59,951		3,219,968

Cosmetics and Toiletries - 1.38%
Elizabeth Arden, Inc.*		83,043		2,238,424

Electronic Components - 3.54%
Cirrus Logic, Inc.*		114,500		731,083
PMC-Sierra, Inc.*		107,600		903,302
RF Micro Devices, Inc.*		366,600		2,465,385
Tessera Technologies, Inc.*		21,213		795,912
Trident Microsystems, Inc.*		53,300		848,003
				5,743,685
Food and Related - 2.73%
Hain Celestial Group, Inc. (The)*		95,011		3,050,328
Sensient Technologies Corporation		47,700		1,377,099
				4,427,427
Forest and Paper Products - 1.19%
Louisiana-Pacific Corporation		113,400		1,924,398

Health Care - Drugs - 3.05%
Axcan Pharma Inc.*		193,048		4,004,781
PharMerica Corporation*		63,787		951,702
				4,956,483
Health Care - General - 2.07%
Amedisys, Inc.*		45,166		1,734,374
Invacare Corporation		69,900		1,634,262
				3,368,636
Hospital Supply and Management - 2.07%
Kindred Healthcare, Inc.*		64,200		1,149,822
Magellan Health Services, Inc.*		53,700		2,176,729
Orthofix International N.V.*		730		35,770
				3,362,321
Hotels and Gaming - 6.59%
Morgans Hotel Group Co.*		108,336		2,356,850
Orient-Express Hotels Ltd.		62,500		3,204,375
Pinnacle Entertainment, Inc.*		126,900		3,455,487
Vail Resorts, Inc.*		26,987		1,681,020
				10,697,732
Insurance - Property and Casualty - 4.18%
Aspen Insurance Holdings Limited		40,300		1,124,773
Endurance Specialty Holdings Ltd.		30,361		1,261,500
IPC Holdings, Ltd.		88,549		2,555,967
Platinum Underwriters Holdings, Ltd.		51,391		1,848,020
				6,790,260
Leisure Time Industry - 0.41%
LeapFrog Enterprises, Inc.*		80,838		666,913

Metal Fabrication - 0.41%
A.M. Castle & Co.		20,300		661,780

Mining - 0.52%
USEC Inc.*		83,000		850,750

Motor Vehicle Parts - 1.46%
LKQ Corporation*		68,100		2,369,199

Non-Residential Construction - 1.00%
Perini Corporation*		29,088		1,626,892

Petroleum - Domestic - 0.98%
Delta Petroleum Corporation*		89,100		1,595,336

Petroleum - International - 1.30%
Swift Energy Company*		51,600		2,111,472

Petroleum - Services - 2.11%
Cal Dive International, Inc.*		75,800		1,137,000
Hercules Offshore, Inc.*		48,583		1,268,016
North American Energy Partners Inc.*		58,700		1,013,162
				3,418,178
Real Estate Investment Trust - 5.18%
Arbor Realty Trust, Inc.		116,029		2,191,788
Capital Trust, Inc., Class A		31,509		1,118,570
Gramercy Capital Corp.		109,819		2,764,144
LaSalle Hotel Properties		55,600		2,339,648
				8,414,150
Retail - Food Stores - 3.53%
Longs Drug Stores Corporation		46,200		2,294,754
Ruddick Corporation		102,500		3,437,850
				5,732,604
Retail - General Merchandise - 3.00%
BJ's Wholesale Club, Inc.*		147,000		4,874,520

Retail - Specialty Stores - 4.65%
AnnTaylor Stores Corporation*		46,300		1,466,321
Carter's, Inc.*		48,600		969,570
Dress Barn, Inc. (The)*		55,700		948,293
Jos. A. Bank Clothiers, Inc.*		5,400		180,684
Sally Holdings, Inc.*		95,234		804,727
Talbots, Inc. (The)		85,100		1,531,800
Tween Brands, Inc.*		50,000		1,642,000
				7,543,395
Savings and Loans - 1.82%
Sterling Financial Corporation*		82,548		2,220,128
WSFS Financial Corporation*		11,892		739,385
				2,959,513
Security and Commodity Brokers - 2.17%
Piper Jaffray Companies*		65,613		3,516,857

Timesharing and Software - 0.46%
TradeStation Group, Inc.*		64,600		752,913

Trucking and Shipping - 1.45%
Kirby Corporation*		26,700		1,178,538
Knight Transportation, Inc.		68,600		1,180,606
				2,359,144
Utilities - Electric - 1.43%
Black Hills Corporation		19,100		783,482
UIL Holdings Corporation		48,700		1,534,050
				2,317,532
Utilities - Gas and Pipeline - 0.82%
Southwest Gas Corporation		46,958		1,328,442

TOTAL COMMON STOCKS - 96.13%			$	156,091,373

(Cost: $146,946,011)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Banks - 1.77%
Rabobank USA Financial Corp. (Rabobank Nederland),
4.99%, 10-1-07	$	2,882		2,882,000

Household - General - 1.23%
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)),
5.2%, 10-9-07		2,000		1,997,689

Leisure Time Industry - 1.23%
Walt Disney Company (The),
5.2%, 10-11-07		2,000		1,997,111

TOTAL SHORT-TERM SECURITIES - 4.23%			$	6,876,800

(Cost: $6,876,800)

TOTAL INVESTMENT SECURITIES - 100.36%			$	162,968,173

(Cost: $153,822,811)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.36%)				(584,808	)


NET ASSETS - 100.00%			$	162,383,365

Notes to Schedule of Investments

*No dividends were paid during the preceding 12 months.

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.

See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY SMALL CAP VALUE FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                         (Unaudited)

ASSETS
Investment securities - at value (cost - $153,823) (Notes 1 and 3)	$	162,968
Receivables:
Investment securities sold		441
Fund shares sold		196
Dividends and interest		191
Prepaid and other assets		33

Total assets		163,829

LIABILITIES
Payable to Fund shareholders		597
Payable for investment securities purchased		560
Accrued management fee (Note 2)		115
Accrued shareholder servicing (Note 2)		74
Accrued service fee (Note 2)		42
Accrued distribution fee (Note 2)		12
Accrued accounting services fee (Note 2)		6
Due to custodian		3
Other		37

Total liabilities		1,446

Total net assets	$	162,383

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	145,255
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(441)
Accumulated undistributed net realized gain on investment transactions		8,424
Net unrealized appreciation in value of investments		9,145

Net assets applicable to outstanding units of capital	$	162,383

Net asset value per share (net assets divided by shares outstanding):
Class A	$15.97
Class B	$15.16
Class C	$15.38
Class E	$16.01
Class I	$16.29
Class Y	$16.19
Capital shares outstanding:
Class A		7,799
Class B		498
Class C		712
Class E		6
Class I		35
Class Y		1,152

See Notes to Financial Statements.

Statement of Operations
      IVY SMALL CAP VALUE FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                            (Unaudited)


INVESTMENT LOSS
Income (Note 1B):
Dividends	$	897
Interest and amortization		206

Total income		1,103

Expenses (Note 2):
Investment management fee		723
Shareholder servicing:
Class A		300
Class B		34
Class C		31
Class E		––	*
Class I		1
Class Y		15
Service fee:
Class A		153
Class B		11
Class C		15
Class Y		25
Distribution fee:
Class A		7
Class B		32
Class C		46
Class E		––	*
Accounting services fee		36
Audit fees		13
Custodian fees		10
Legal fees		1
Other		77

Total expenses		1,530

Net investment loss		(427	)

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		2,383
Unrealized depreciation in value of investments during the period		(4,784	)

Net loss on investments		(2,401	)

Net decrease in net assets resulting from operations	$	(2,828	)

See Notes to Financial Statements.

Statement of Changes in Net Assets
IVY SMALL CAP VALUE FUND
(In Thousands) (Unaudited)

				For the fiscal year ended March 31, 2007

INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss	$	(427	)	$	(428	)
Realized net gain on investments		2,383			13,402
Unrealized depreciation		(4,784	)		(1,667	)

Net increase (decrease) in net assets resulting from operations		(2,828	)		11,307

Distributions to shareholders from (Note 1F):⁽¹⁾
Net investment income:
Class A		(––	)		(––	)
Class B		(––	)		(––	)
Class C		(––	)		(––	)
Class E		(––	)		NA
Class I		(––	)		NA
Class Y		(––	)		(––	)
Realized gains on investment transactions:
Class A		(––	)		(8,051	)
Class B		(––	)		(627	)
Class C		(––	)		(925	)
Class E		(––	)		NA
Class I		(––	)		NA
Class Y		(––	)		(1,624	)

		(––	)		(11,227	)

Capital share transactions (Note 5)		2,147			35,884

Total increase (decrease)		(681	)		35,964
NET ASSETS
Beginning of period		163,064			127,100

End of period	$	162,383		$	163,064

Undistributed net investment loss	$	(441	)	$	(14	)

(1)See "Financial Highlights" on pages 269 - 274.

See Notes to Financial Statements.

Financial Highlights
      IVY SMALL CAP VALUE FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended July 31,
	9-30-07				2007			2006			2005		3-31-04				2003			2002

Net asset value, beginning of period		$	16.22		$	16.24		$	16.88		$	16.68		$	13.02		$	12.25		$	15.05

Income (loss) from investment operations:
Net investment loss			(0.04	)		(0.03	)		(0.11	)		(0.13	)		(0.08	)		(0.09	)		(0.08	)
Net realized and unrealized gain (loss) on investments			(0.21	)		1.35			2.62			1.52			3.76			1.74			(1.84	)

Total from investment operations			(0.25	)		1.32			2.51			1.39			3.68			1.65			(1.92	)

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)*		(0.00	)
Capital gains			(0.00	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)		(0.88	)		(0.88	)

Total distributions			(0.00	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)		(0.88	)		(0.88	)

Net asset value, end of period		$	15.97		$	16.22		$	16.24		$	16.88		$	16.68		$	13.02		$	12.25

Total return⁽¹⁾			-1.54	%		8.26	%		16.44	%		8.23	%		28.29	%		14.91	%	-13.27		%
Net assets, end of period (in millions)		$125			$121			$86			$66			$65			$59			$53
Ratio of expenses to average net assets including voluntary expense waiver			1.73	%⁽²⁾		1.74	%		1.80	%		1.76	%		1.65	%⁽²⁾⁽³⁾		1.53	%		1.27	%
Ratio of net investment loss to average net assets including voluntary expense waiver			-0.43	%⁽²⁾		-0.24	%		-0.76	%		-0.79	%		-0.76	%⁽²⁾⁽³⁾		-0.82	%		-0.57	%
Ratio of expenses to average net assets excluding voluntary expense waiver			1.73	%⁽²⁾⁽⁴⁾		1.74	%⁽⁴⁾		1.80	%⁽⁴⁾		1.76	%⁽⁴⁾		1.65	%^(2)(3)(4)		1.53	%⁽⁴⁾		1.37	%
Ratio of net investment loss to average net assets excluding voluntary expense waiver			-0.43	%⁽²⁾⁽⁴⁾		-0.24	%⁽⁴⁾		-0.76	%⁽⁴⁾		-0.79	%⁽⁴⁾		-0.76	%^(2)(3)(4)		-0.82	%⁽⁴⁾		-0.67	%
Portfolio turnover rate			63	%		123	%		157	%		124	%		27	%		54	%		37	%

*Not shown due to rounding.

(1)Total return calculated without taking into account the sales load deducted on an initial purchase.

(2)Annualized.

(3)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of thepredecessor Advantus Fund were exchanged into Class A shares at the time of the merger. Theratios shown above reflect a blended rate that includes the effect of income and expenses for thoseClass B and Class C shares from August 1, 2003 up to the time of the merger. Actual expenses thatapplied to Class A shareholders were lower than shown above.

(4)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY SMALL CAP VALUE FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	15.48		$	15.72		$	16.59		$	16.61		$	15.27

Income (loss) from investment operations:
Net investment loss			(0.16	)		(0.14	)		(0.25	)		(0.23	)		(0.05	)
Net realized and unrealized gain (loss) on investments			(0.16	)		1.24			2.53			1.40			1.41

Total from investment operations			(0.32	)		1.10			2.28			1.17			1.36

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)

Total distributions			(0.00	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)

Net asset value, end of period		$	15.16		$	15.48		$	15.72		$	16.59		$	16.61

Total return			-2.07	%		7.11	%		15.28	%		6.92	%		8.93	%
Net assets, end of period (in millions)		$7			$9			$7			$5			$1
Ratio of expenses to average net assets			2.82	%⁽²⁾		2.82	%		2.84	%		3.02	%		3.79	%⁽²⁾
Ratio of net investment loss to average net assets			-1.53	%⁽²⁾		-1.33	%		-1.80	%		-1.88	%		-2.93	%⁽²⁾
Portfolio turnover rate			63	%		123	%		157	%		124	%		27	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the eight months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY SMALL CAP VALUE FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	15.69		$	15.87		$	16.67		$	16.63		$	15.27

Income (loss) from investment operations:
Net investment loss			(0.13	)		(0.12	)		(0.21	)		(0.19	)		(0.05	)
Net realized and unrealized gain (loss) on investments			(0.18	)		1.28			2.56			1.42			1.43

Total from investment operations			(0.31	)		1.16			2.35			1.23			1.38

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)

Total distributions			(0.00	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)

Net asset value, end of period		$	15.38		$	15.69		$	15.87		$	16.67		$	16.63

Total return			-1.91	%		7.43	%		15.64	%		7.28	%		9.06	%
Net assets, end of period (in millions)		$11			$12			$10			$8			$2
Ratio of expenses to average net assets			2.52	%⁽²⁾		2.52	%		2.54	%		2.65	%		2.83	%⁽²⁾
Ratio of net investment loss to average net assets			-1.23	%⁽²⁾		-1.04	%		-1.50	%		-1.53	%		-2.00	%⁽²⁾
Portfolio turnover rate			63	%		123	%		157	%		124	%		27	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the eight months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY SMALL CAP VALUE FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                           (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	16.22

Income (loss) from investment operations:
Net investment income			0.05	⁽²⁾
Net realized and unrealized loss on investments			(0.26	)⁽²⁾

Total from investment operations			(0.21	)

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	16.01

Total return⁽³⁾			-1.36	%
Net assets, end of period (in thousands)			$98
Ratio of expenses to average net assets			1.27	%⁽⁴⁾
Ratio of net investment income to average net assets			0.03	%⁽⁴⁾
Portfolio turnover rate			63	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY SMALL CAP VALUE FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                           (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	16.42

Income (loss) from investment operations:
Net investment income			0.05	⁽²⁾
Net realized and unrealized loss on investments			(0.18	)⁽²⁾

Total from investment operations			(0.13	)

Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)

Total distributions			(0.00	)

Net asset value, end of period		$	16.29

Total return			-0.85	%
Net assets, end of period (in thousands)		$570
Ratio of expenses to average net assets			1.18	%⁽³⁾
Ratio of net investment loss to average net assets			-0.11	%⁽³⁾
Portfolio turnover rate			63	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY SMALL CAP VALUE FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	16.42		$	16.36		$	16.92		$	16.68		$	15.27

Income (loss) from investment operations:
Net investment income (loss)			(0.01	)		0.03			(0.06	)		(0.10	)		(0.04	)
Net realized and unrealized gain (loss) on investments			(0.22	)		1.37			2.65			1.53			1.47

Total from investment operations			(0.23	)		1.40			2.59			1.43			1.43

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)

Total distributions			(0.00	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)

Net asset value, end of period		$	16.19		$	16.42		$	16.36		$	16.92		$	16.68

Total return			-1.40	%		8.70	%		16.88	%		8.48	%		9.38	%
Net assets, end of period (in millions)		$19			$21			$24			$25			$25
Ratio of expenses to average net assets			1.38	%⁽²⁾		1.39	%		1.41	%		1.53	%		1.60	%⁽²⁾
Ratio of net investment income (loss) to average net assets			-0.09	%⁽²⁾		0.08	%		-0.37	%		-0.56	%		-0.82	%⁽²⁾
Portfolio turnover rate			63	%		123	%		157	%		124	%		27	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the eight months ended March 31, 2004.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY VALUE FUND

Portfolio Highlights

On September 30, 2007, Ivy Value Fund had net assets totaling $90,201,620 invested
in a diversified portfolio of:

89.24%		Domestic Common Stocks
5.83%		Cash and Cash Equivalents
4.93%		Foreign Common Stocks

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:

Financial Services Stocks	$	26.04
Energy Stocks	$	15.28
Technology Stocks	$	14.35
Health Care Stocks	$	11.06
Utilities Stocks	$	8.34
Cash and Cash Equivalents	$	5.83
Miscellaneous Stocks	$	5.61
Multi-Industry Stocks	$	4.04
Consumer Nondurables Stocks	$	3.96
Capital Goods Stocks	$	3.70
Transportation Stocks	$	1.79

The Investments of Ivy Value Fund
September 30, 2007 (Unaudited)
COMMON STOCKS	Shares			Value


Aircraft - 4.25%
Lockheed Martin Corporation		9,600	$	1,041,504
Raytheon Company		43,800		2,795,316
				3,836,820
Banks - 6.47%
Bank of America Corporation		71,056		3,571,985
Citigroup Inc.		28,613		1,335,369
Wachovia Corporation		18,450		925,267
				5,832,621
Beverages - 1.45%
Diageo plc, ADR		14,950		1,311,564

Business Equipment and Services - 1.12%
Waste Management, Inc.		26,700		1,007,658

Capital Equipment - 2.07%
Illinois Tool Works Inc.		31,280		1,865,539

Chemicals - Petroleum and Inorganic - 0.87%
E.I. du Pont de Nemours and Company		15,850		785,526

Communications Equipment - 1.37%
Nokia Corporation, Series A, ADR		32,600		1,236,518

Computers - Main and Mini - 7.89%
Hewlett-Packard Company (A)		84,000		4,182,360
International Business Machines Corporation (A)		17,300		2,037,940
Xerox Corporation*		51,700		896,478
				7,116,778
Defense - 0.84%
General Dynamics Corporation		9,000		760,230

Finance Companies - 8.15%
Capital One Financial Corporation		41,000		2,723,630
CIT Group Inc. (A)		21,000		844,200
Discover Financial Services*		10,650		221,520
Fannie Mae		33,300		2,024,973
Freddie Mac		26,000		1,534,260
				7,348,583
Food and Related - 2.51%
General Mills, Inc.		22,800		1,322,628
Kraft Foods Inc.		27,321		942,848
				2,265,476
Forest and Paper Products - 0.67%
Weyerhaeuser Company		8,400		607,320

Health Care - Drugs - 4.40%
Endo Pharmaceuticals Holdings Inc.*		30,200		935,898
McKesson Corporation		32,200		1,893,038
Pfizer Inc.		46,600		1,138,438
				3,967,374
Health Care - General - 1.52%
AmerisourceBergen Corporation		30,300		1,373,499

Hospital Supply and Management - 5.14%
Aetna Inc.		25,200		1,367,604
Coventry Health Care, Inc.*		30,400		1,891,184
Humana Inc. (A)*		19,700		1,376,636
				4,635,424
Insurance - Property and Casualty - 6.27%
Everest Re Group, Ltd.		17,200		1,896,128
MBIA Inc.		21,400		1,306,470
Travelers Companies, Inc. (The)		48,752		2,454,176
				5,656,774
Metal Fabrication - 1.63%
Loews Corporation, Carolina Group		17,900		1,471,917

Mining - 0.37%
Freeport-McMoRan Copper & Gold Inc., Class B		3,200		335,648

Multiple Industry - 4.04%
Altria Group, Inc.		52,400		3,643,372

Petroleum - International - 15.28%
Apache Corporation		11,100		999,666
Chevron Corporation		37,800		3,537,324
ConocoPhillips		28,800		2,527,776
Devon Energy Corporation		16,000		1,331,200
Exxon Mobil Corporation		42,706		3,952,867
Marathon Oil Corporation		25,200		1,436,904
				13,785,737
Railroad - 1.79%
Union Pacific Corporation		14,300		1,616,758

Real Estate Investment Trust - 1.03%
Vornado Realty Trust		8,400		918,540

Retail - General Merchandise - 1.55%
Macy's Inc. (A)		43,300		1,399,456

Security and Commodity Brokers - 5.15%
Bear Stearns Companies Inc. (The) (A)		7,300		896,513
J.P. Morgan Chase & Co.		67,402		3,088,359
Morgan Stanley (A)		10,500		661,500
				4,646,372
Utilities - Electric - 4.60%
Mirant Corporation*		68,700		2,794,716
NRG Energy, Inc.*		32,000		1,353,280
				4,147,996
Utilities - Telephone - 3.74%
AT&T Inc. (A)		42,100		1,781,251
Sprint Nextel Corporation		22,200		421,800
Verizon Communications Inc.		26,400		1,168,992
				3,372,043

TOTAL COMMON STOCKS - 94.17%			$	84,945,543

(Cost: $66,638,827)

SHORT-TERM SECURITIES	Principal Amount in Thousands


Chemicals - Speciality - 2.23%
Air Products and Chemicals, Inc.,
5.05%, 10-1-07	$	2,010		2,010,000

Health Care - General - 3.32%
Johnson & Johnson,
4.73%, 10-9-07		3,000		2,996,847

Leisure Time Industries - 2.22%
Walt Disney Company (The),
5.2%, 10-11-07		2,000		1,997,111

TOTAL SHORT-TERM SECURITIES - 7.77%			$	7,003,958

(Cost: $7,003,958)

TOTAL INVESTMENT SECURITIES - 101.94%			$	91,949,501

(Cost: $73,642,785)

LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.94%)				(1,747,881	)


NET ASSETS - 100.00%			$	90,201,620

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 September 30, 2007. (See Note 6 to financial statements):
	Underlying Security	Contracts Subject to Call	Expiration Month/ Exercise Price	Premium Received			Market Value

	AT&T Inc.	59	October/42.5		$	3,717		$	3,776
	Hewlett-Packard Company	36	November/52.5			2,088			3,060
	Humana Inc.	218	October/72.5			18,094			20,771

					$	23,899		$	27,607


	Underlying Security	Contracts Subject to Put	Expiration Month/ Exercise Price	Premium Received			Market Value

	Bear Stearns Companies Inc. (The)	31	October/90		$	8,969		$	465
	CIT Group Inc.	78	November/30			3,042			3,510
	International Business Machines Corporation:	25	October/100			2,863			188
		32	October/105			4,864			608
	Macy's Inc.	145	November/22.5			4,205			1,812
	Morgan Stanley	51	October/50			3,085			255

					$	27,028		$	6,838

See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

Statement of Assets and Liabilities
      IVY VALUE FUND
      September 30, 2007
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $73,643) (Notes 1 and 3)	$	91,949
Receivables:
Dividends and interest		121
Fund shares sold		76
Prepaid and other assets		30

Total assets		92,176

LIABILITIES
Payable for investment securities purchased		1,582
Payable to Fund shareholders		171
Accrued management fee (Note 2)		52
Accrued shareholder servicing (Note 2)		42
Outstanding written options - at value (premium received - $51) (Note 6)		34
Accrued service fee (Note 2)		31
Due to custodian		27
Accrued distribution fee (Note 2)		7
Accrued accounting services fee (Note 2)		4
Other		24

Total liabilities		1,974

Total net assets	$	90,202

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	67,783
Accumulated undistributed income:
Accumulated undistributed net investment income		88
Accumulated undistributed net realized gain on investment transactions		4,008
Net unrealized appreciation in value of investments		18,323

Net assets applicable to outstanding units of capital	$	90,202

Net asset value per share (net assets divided by shares outstanding):
Class A	$19.86
Class B	$19.61
Class C	$19.69
Class E	$19.88
Class I	$19.87
Class Y	$19.86
Capital shares outstanding:
Class A		3,931
Class B		317
Class C		275
Class E		5
Class I		5
Class Y		16

See Notes to Financial Statements.

Statement of Operations
      IVY VALUE FUND
      For the Six Months Ended September 30, 2007
      (In Thousands)                                                                                                               (Unaudited)

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $1)	$	937
Interest and amortization		83

Total income		1,020

Expenses (Note 2):
Investment management fee		320
Shareholder servicing:
Class A		127
Class B		17
Class C		12
Class E		––	*
Class I		––	*
Class Y		––	*
Service fee:
Class A		96
Class B		8
Class C		7
Class Y		––	*
Distribution fee:
Class A		3
Class B		24
Class C		21
Class E		––	*
Accounting services fee		25
Audit fees		13
Custodian fees		5
Legal fees		1
Other		54

Total expenses		733

Net investment income		287

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		3,159
Realized net loss on written options		(489	)

Realized net gain on investments		2,670

Unrealized appreciation in value of securities during the period		804
Unrealized depreciation in value of written options during the period	(7		)

Unrealized appreciation in value of investments during the period		797

Net gain on investments		3,467

Net increase in net assets resulting from operations	$	3,754

See Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY VALUE FUND
      (In Thousands)                                                                                                                (Unaudited)

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007

INCREASE IN NET ASSETS
Operations:
Net investment income		$	287		$	544
Realized net gain on investments			2,670			2,770
Unrealized appreciation			797			7,603

Net increase in net assets resulting from operations			3,754			10,917

Distributions to shareholders from (Note 1F):⁽¹⁾
Net investment income:
Class A			(241	)		(470	)
Class B			(––	)		(––	)
Class C			(––	)		(1	)
Class E			(––	)*		NA
Class I			(1	)		NA
Class Y			(1	)		(51	)
Realized gains on investment transactions:
Class A			(––	)		(1,502	)
Class B			(––	)		(120	)
Class C			(––	)		(106	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(8	)

			(243	)		(2,258	)

Capital share transactions (Note 5)			2,947			(4,333	)

Total increase			6,458			4,326
NET ASSETS
Beginning of period			83,744			79,418

End of period		$	90,202		$	83,744

Undistributed net investment income		$	88		$	44

*Not shown due to rounding

(1)See "Financial Highlights" on pages 283 - 288.

See Notes to Financial Statements.

Financial Highlights
      IVY VALUE FUND
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,								For the fiscal period ended				For the fiscal year ended				For the period from 10-1-01 to				For the fiscal year ended
	9-30-07				2007			2006			2005		3-31-04				7-31-03				7-31-02				9-30-01

Net asset value, beginning of period		$	19.04		$	17.17		$	16.04		$	14.54		$	12.54			$	11.81			$	12.59			$	15.08

Income (loss) from investment operations:
Net investment income			0.07			0.13			0.10			0.15			0.08				0.12				0.08				0.09
Net realized and unrealized gain (loss) on investments			0.81			2.28			1.14			1.48			1.98				0.72				(0.78	)			(2.50	)

Total from investment operations			0.88			2.41			1.24			1.63			2.06				0.84				(0.70	)			(2.41	)

Less distributions from:
Net investment income			(0.06	)		(0.13	)		(0.11	)		(0.13	)		(0.06	)			(0.11	)			(0.08	)			(0.08	)
Capital gains			(0.00	)		(0.41	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)			(0.00	)			(0.00	)

Total distributions			(0.06	)		(0.54	)		(0.11	)		(0.13	)		(0.06	)			(0.11	)			(0.08	)			(0.08	)

Net asset value, end of period		$	19.86		$	19.04		$	17.17		$	16.04		$	14.54			$	12.54			$	11.81			$	12.59

Total return⁽¹⁾			4.62	%		14.12	%		7.75	%		11.21	%		16.32	%			7.23	%		-5.72		%		-15.97		%
Net assets, end of period (in millions)		$78			$73			$58			$41			$52				$64				$58				$66
Ratio of expenses to average net assets including voluntary expense waiver			1.48	%⁽²⁾		1.49	%		1.53	%		1.47	%		1.45	%⁽²⁾⁽³⁾			1.29	%			1.24	%⁽²⁾			1.24	%
Ratio of net investment income to average net assets including voluntary expense waiver			0.74	%⁽²⁾		0.76	%		0.65	%		0.92	%		0.61	%⁽²⁾⁽³⁾			1.05	%			0.70	%⁽²⁾			0.61	%
Ratio of expenses to average net assets excluding voluntary expense waiver			1.48	%⁽²⁾⁽⁴⁾		1.49	%⁽⁴⁾		1.53	%⁽⁴⁾		1.47	%⁽⁴⁾		1.52	%⁽²⁾⁽³⁾			1.50	%			1.41	%⁽²⁾			1.39	%
Ratio of net investment income to average net assets excluding voluntary expense waiver			0.74	%⁽²⁾⁽⁴⁾		0.76	%⁽⁴⁾		0.65	%⁽⁴⁾		0.92	%⁽⁴⁾		0.53	%⁽²⁾⁽³⁾			0.84	%			0.53	%⁽²⁾			0.46	%
Portfolio turnover rate			35	%		61	%		63	%		81	%		86	%			123	%			95	%			148	%

(1)Total return calculated without taking into account the sales load deducted on an initial purchase.

(2)Annualized.

(3)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that includes the effect of income and expenses for those Class B and Class C shares from August 1, 2003 up to the time of the merger. Actual expenses that applied to Class A shareholders were lower than shown above.

(4)There was no waiver of expenses during the period.

See Notes to Financial Statements.

Financial Highlights
      IVY VALUE FUND
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	18.83		$	17.04		$	15.97		$	14.50			$	13.63

Income (loss) from investment operations:
Net investment income (loss)			(0.02	)		(0.03	)		(0.04	)		0.03				0.01
Net realized and unrealized gain on investments			0.80			2.23			1.12			1.44				0.90

Total from investment operations			0.78			2.20			1.08			1.47				0.91

Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.01	)		(0.00	)			(0.04	)
Capital gains			(0.00	)		(0.41	)		(0.00	)		(0.00	)			(0.00	)

Total distributions			(0.00	)		(0.41	)		(0.01	)		(0.00	)			(0.04	)

Net asset value, end of period		$	19.61		$	18.83		$	17.04		$	15.97			$	14.50

Total return			4.09	%		12.99	%		6.73	%		10.14	%			6.65	%
Net assets, end of period (in millions)		$6			$6			$5			$2				$1
Ratio of expenses to average net assets			2.44	%⁽²⁾		2.46	%		2.50	%		2.53	%			3.12	%⁽²⁾
Ratio of net investment income (loss) to average net assets			-0.20	%⁽²⁾		-0.21	%		-0.33	%		0.07	%			-1.29	%⁽²⁾
Portfolio turnover rate			35	%		61	%		63	%		81	%			86	%⁽³⁾

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the eight months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY VALUE FUND
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,									For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007			2006			2005			3-31-04

Net asset value, beginning of period		$	18.90		$	17.08		$	16.00		$	14.51			$	13.63

Income (loss) from investment operations:
Net investment income (loss)			(0.01	)		(0.01	)		(0.04	)		0.03				0.02
Net realized and unrealized gain on investments			0.80			2.24			1.13			1.46				0.90

Total from investment operations			0.79			2.23			1.09			1.49				0.92

Less distributions from:
Net investment income			(0.00	)		(0.00	)*		(0.01	)		(0.00	)			(0.04	)
Capital gains			(0.00	)		(0.41	)		(0.00	)		(0.00	)			(0.00	)

Total distributions			(0.00	)		(0.41	)		(0.01	)		(0.00	)			(0.04	)

Net asset value, end of period		$	19.69		$	18.90		$	17.08		$	16.00			$	14.51

Total return			4.18	%		13.09	%		6.80	%		10.27	%			6.73	%
Net assets, end of period (in millions)		$6			$5			$4			$3				$1
Ratio of expenses to average net assets			2.34	%⁽²⁾		2.38	%		2.41	%		2.42	%			2.90	%⁽²⁾
Ratio of net investment income (loss) to average net assets			-0.12	%⁽²⁾		-0.12	%		-0.23	%		0.15	%			-1.18	%⁽²⁾
Portfolio turnover rate			35	%		61	%		63	%		81	%			86	%⁽³⁾

*Not shown due to rounding.

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the eight months ended March 31, 2004.

See Notes to Financial Statements.

Financial Highlights
      IVY VALUE FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	19.04

Income from investment operations:
Net investment income			0.11	⁽²⁾
Net realized and unrealized gain on investments			0.80	⁽²⁾

Total from investment operations			0.91

Less distributions from:
Net investment income			(0.07	)
Capital gains			0.00

Total distributions			(0.07	)

Net asset value, end of period		$	19.88

Total return⁽³⁾			4.49	%
Net assets, end of period (in thousands)		$105
Ratio of expenses to average net assets			1.18	%⁽⁴⁾
Ratio of net investment income to average net assets			1.08	%⁽⁴⁾
Portfolio turnover rate			35	%⁽⁵⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Total return calculated without taking into account the sales load deducted on an initial purchase.

(4)Annualized.

(5)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY VALUE FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                     (Unaudited)

	For the period from 4-2-07⁽¹⁾ through
	9-30-07

Net asset value, beginning of period		$	19.04

Income from investment operations:
Net investment income			0.12	⁽²⁾
Net realized and unrealized gain on investments			0.81	⁽²⁾

Total from investment operations			0.93

Less distributions from:
Net investment income			(0.10	)
Capital gains			(0.00	)

Total distributions			(0.10	)

Net asset value, end of period		$	19.87

Total return			4.53	%
Net assets, end of period (in thousands)		$105
Ratio of expenses to average net assets			1.08	%⁽³⁾
Ratio of net investment income to average net assets			1.18	%⁽³⁾
Portfolio turnover rate			35	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the six months ended September 30, 2007.

See Notes to Financial Statements.

Financial Highlights
      IVY VALUE FUND
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the fiscal year ended March 31,											For the period from 12-8-03⁽¹⁾ to
	9-30-07				2007				2006				2005			3-31-04

Net asset value, beginning of period		$	19.04		$	17.18			$	16.05			$	14.54			$	13.63

Income from investment operations:
Net investment income			0.10			0.22	⁽²⁾			0.13				0.17				0.01
Net realized and unrealized gain on investments			0.80			2.22	⁽²⁾			1.15				1.49				0.95

Total from investment operations			0.90			2.44				1.28				1.66				0.96

Less distributions from:
Net investment income			(0.08	)		(0.17	)			(0.15	)			(0.15	)			(0.05	)
Capital gains			(0.00	)		(0.41	)			(0.00	)			(0.00	)			(0.00	)

Total distributions			(0.08	)		(0.58	)			(0.15	)			(0.15	)			(0.05	)

Net asset value, end of period		$	19.86		$	19.04			$	17.18			$	16.05			$	14.54

Total return			4.76	%		14.28	%			7.99	%			11.44	%			7.05	%
Net assets, end of period (in thousands)		$308			$294			$12,286				$20,286				$22,379
Ratio of expenses to average net assets			1.30	%⁽³⁾		1.29	%			1.31	%			1.34	%			1.48	%⁽³⁾
Ratio of net investment income to average net assets			0.92	%⁽³⁾		0.96	%			0.89	%			1.09	%			0.35	%⁽³⁾
Portfolio turnover rate			35	%		61	%			63	%			81	%			86	%⁽⁴⁾

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)For the eight months ended March 31, 2004.

See Notes to Financial Statements.

Notes to Financial Statements
September 30, 2007 (Unaudited)

NOTE 1 - Significant Accounting Policies

Ivy Funds (the Trust) is organized as a Massachusetts business trust under a Declaration of Trust dated December 21, 1983 and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Trust issues sixteen series of capital shares; each series represents ownership of a separate mutual fund (Fund). The assets belonging to each Fund are held separately by the custodian. The capital shares of each Fund represent a pro rata beneficial interest in the principal, net income and realized and unrealized capital gains or losses of its respective investments and other assets. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.

A. Security valuation - Each stock and convertible bond is valued at the latest sale price thereof on each business day of the fiscal period as reported by the principal securities exchange on which the issue is traded or, if no sale is reported for a stock, the average of the latest bid and asked prices. Bonds, other than convertible bonds, are valued using a pricing system provided by a pricing service or dealer in bonds. Convertible bonds are valued using this pricing system only on days when there is no sale reported. Stocks which are traded over-the-counter are priced using the Nasdaq Stock Market, which provides information on bid and asked prices quoted by major dealers in such stocks. Securities for which quotations are not readily available or are deemed not to be reliable because of significant events or circumstances identified between the closing of their principal markets and the closing of the New York Stock Exchange are valued at fair value as determined in good faith under procedures established by and under the general supervision of the Trust's Board of Trustees. Management's valuation committee makes fair value determinations for the Trust, subject to the supervision of the Board of Trustees. Short-term debt securities, purchased with less than 60 days to maturity, are valued at amortized cost, which approximates market value. Short-term debt securities denominated in foreign currencies are valued at amortized cost in that currency.

B. Security transactions and related investment income - Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Securities gains and losses are calculated on the identified cost basis. Premium and discount on the purchase of bonds are amortized for both financial and tax reporting purposes over the remaining lives of the bonds. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Interest income is recorded on the accrual basis. See Note 3 - Investment Securities Transactions.

C. Foreign currency translations - All assets and liabilities denominated in foreign currencies are translated into United States dollars daily. Purchases and sales of investment securities and accruals of income and expenses are translated at the rate of exchange prevailing on the date of the transaction. For assets and liabilities other than investments in securities, net realized and unrealized gains and losses from foreign currency translation arise from changes in currency exchange rates. The Trust combines fluctuations from currency exchange rates and fluctuations in market value when computing net realized and unrealized gain or loss from investments.

D. Forward foreign currency exchange contracts - A forward foreign currency exchange contract (Forward Contract) is an obligation to purchase or sell a specific currency at a future date at a fixed price. Forward Contracts are marked-to-market daily at the applicable translation rates and the resulting unrealized gains or losses are reflected in the Trust's financial statements. Gains or losses are realized by the Trust at the time the Forward Contract is extinguished. Contracts may be extinguished either by entry into a closing transaction or by delivery of the currency. Risks may arise from the possibility that the other party will not complete the obligations of the contract and from unanticipated movements in the value of the foreign currency relative to the United States dollar. The Trust uses Forward Contracts to attempt to reduce the overall risk of its investments.

E. Federal income taxes - It is the Trust's policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition, the Trust intends to pay distributions as required to avoid imposition of excise tax. Accordingly, provision has not been made for Federal income taxes. See Note 4 - Federal Income Tax Matters.

F. Dividends and distributions - Dividends and distributions to shareholders are recorded by each Fund on the business day following record date. Net investment income dividends and capital gains distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as deferral of wash sales and post-October losses, foreign currency transactions, net operating losses and expiring capital loss carryovers.

G. Repurchase agreements - Repurchase agreements are collateralized by the value of the resold securities which, during the entire period of the agreement, remains at least equal to the value of the loan, including accrued interest thereon. The collateral for the repurchase agreement is held by the custodian bank.

H. New Accounting Pronouncements - In June 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 16, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management has concluded that the adoption of FIN 48 will not result in a material impact on the Trust's net assets, results of operations and financial statement disclosures. In September 2006, FASB issued Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." SFAS 157 defines fair value for purposes of financial statement presentation, establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. The Trust will adopt SFAS 157 during 2008 and its potential impact, if any, on each Fund's financial statements is currently being assessed by management.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

NOTE 2 - Investment Management and Payments to Affiliated Persons

Ivy Investment Management Company (IICO), a wholly owned subsidiary of Waddell & Reed Financial, Inc. (WDR), serves as the investment manager for each Fund. IICO provides advice and supervises investments for which services it is paid a fee. The fee is payable by each Fund at the following annual rates:

Fund	Net Asset Breakpoints	Annual Rate

Ivy Balanced Fund	Up to $1 Billion	0.70%
	Over $1 Billion up to $2 Billion	0.65%
	Over $2 Billion up to $3 Billion	0.60%
	Over $3 Billion	0.55%

Ivy Bond Fund	Up to $500 Million	0.525%
	Over $500 Million and up to $1 Billion	0.50%
	Over $1 Billion and up to $1.5 Billion	0.45%
	Over $1.5 Billion	0.40%

Ivy Cundill Global Value Fund	Up to $500 Million	1.00%
	Over $500 Million and up to $1 Billion	0.85%
	Over $1 Billion and up to $2 Billion	0.83%
	Over $2 Billion and up to $3 Billion	0.80%
	Over $3 Billion	0.76%

Ivy Dividend Income Fund	Up to $1 Billion	0.70%
	Over $1 Billion up to $2 Billion	0.65%
	Over $2 Billion up to $3 Billion	0.60%
	Over $3 Billion	0.55%

Ivy European Opportunities Fund	Up to $250 Million	1.00%
	Over $250 Million up to $500 Million	0.85%
	Over $500 Million	0.75%

Ivy Global Natural Resources Fund	Up to $500 Million	1.00%
	Over $500 Million and up to $1 Billion	0.85%
	Over $1 Billion and up to $2 Billion	0.83%
	Over $2 Billion and up to $3 Billion	0.80%
	Over $3 Billion	0.76%

Ivy International Balanced Fund	Up to $1 Billion	0.70%
	Over $1 Billion and up to $2 Billion	0.65%
	Over $2 Billion and up to $3 Billion	0.60%
	Over $3 Billion	0.55%

Ivy International Core Equity Fund	Up to $1 Billion	0.85%
	Over $1 Billion and up to $2 Billion	0.83%
	Over $2 Billion and up to $3 Billion	0.80%
	Over $3 Billion	0.70%

Ivy International Growth Fund	Up to $1 Billion	0.85%
	Over $1 Billion and up to $2 Billion	0.83%
	Over $2 Billion and up to $3 Billion	0.80%
	Over $3 Billion	0.70%

Ivy Managed European/Pacific Fund	All levels	0.05%

Ivy Managed International Opportunities Fund	All levels	0.05%

Ivy Mortgage Securities Fund	Up to $500 Million	0.50%
	Over $500 Million and up to $1 Billion	0.45%
	Over $1 Billion and up to $1.5 Billion	0.40%
	Over $1.5 Billion	0.35%

Ivy Pacific Opportunities Fund	Up to $500 Million	1.00%
	Over $500 Million and up to $1 Billion	0.85%
	Over $1 Billion and up to $2 Billion	0.83%
	Over $2 Billion and up to $3 Billion	0.80%
	Over $3 Billion	0.76%

Ivy Real Estate Securities Fund	Up to $1 Billion	0.90%
	Over $1 Billion up to $2 Billion	0.87%
	Over $2 Billion up to $3 Billion	0.84%
	Over $3 Billion	0.80%

Ivy Small Cap Value Fund	Up to $1 Billion	0.85%
	Over $1 Billion up to $2 Billion	0.83%
	Over $2 Billion up to $3 Billion	0.80%
	Over $3 Billion	0.76%

Ivy Value Fund	Up to $1 Billion	0.70%
	Over $1 Billion up to $2 Billion	0.65%
	Over $2 Billion up to $3 Billion	0.60%
	Over $3 Billion	0.55%

These fees are accrued daily and are paid monthly. However, IICO has voluntarily agreed to waive its management fee for Ivy Dividend Income Fund, Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund on any day that the Fund's net assets are less than $25 million, subject to IICO's right to change or modify this waiver. During the six-month period ending September 30, 2007, IICO voluntarily waived its fee (in thousands) as shown in the following table:

Ivy Managed European/Pacific Fund		$	2
Ivy Managed International Opportunities Fund			1

Mackenzie Financial Corporation (MFC) serves as subadvisor to Ivy Global Natural Resources Fund under an agreement with IICO and receives a fee as follows: 0.50% of the Fund's average daily net assets up to $500 million, 0.425% of net assets over $500 million and up to $1 billion, 0.415% of net assets over $1 billion and up to $2 billion, 0.40% of net assets over $2 billion and up to $3 billion, and 0.38% of net assets over $3 billion.

Effective December 7, 2006, MFC serves as subadvisor to Ivy Cundill Global Value Fund under an agreement with IICO and receives a fee as follows:

Fund	Net Asset Breakpoints	Annual Rate

Ivy Cundill Global Value Fund	On the first $500 Million	0.50%
	On the next $500 Million	0.425%
	On the next $1 Billion	0.415%
	On the next $1 Billion	0.40%
	On all assets exceeding $3 Billion	0.38%

MFC was the interim subadvisor to Ivy Cundill Global Value Fund from September 22, 2006 until December 7, 2006. Prior to September 22, 2006, Cundill Investment Research Ltd. served as subadvisor to the Fund.

Henderson Global Investors (North America) Inc. (HGINA) serves as subadvisor to Ivy European Opportunities Fund under an agreement with IICO. Henderson Investment Management Ltd., under a subadvisory agreement with HGINA, serves as subadvisor to the Fund. HGINA receives a fee payable monthly at an annual rate of 0.50% of average net assets.

Advantus Capital Management, Inc. serves as subadvisor to Ivy Bond Fund, Ivy Mortgage Securities Fund and Ivy Real Estate Securities Fund under an agreement with IICO and receives a fee equal to, on an annual basis, 0.27%, 0.30% and 0.55% of the respective Fund's average net assets.

Effective February 2, 2007, BlackRock Capital Management, Inc. serves as subadvisor to Ivy Small Cap Value Fund under an agreement with IICO and receives a fee equal to, on an annual basis, 0.50% of the Fund's average net assets.

BlackRock Capital Management, Inc, was the interim subadvisor to the Fund from September 27, 2006 until February 2, 2007. Prior to September 27, 2006, Blackrock Financial Management Inc. served as subadvisor to the Fund.

Templeton Investment Counsel, LLC serves as subadvisor to Ivy International Balanced Fund under an agreement with IICO and receives a fee that is shown in the following table:

Fund	Net Asset Breakpoints	Annual Rate

Ivy International Balanced Fund	On the first $100 Million	0.50%
	All net assets exceeding $100 Million	0.40%

Pursuant to a Master Fund Accounting Services Agreement, IICO provides certain accounting and pricing services for each Fund. As of March 18, 2003, IICO assigned its responsibilities under the Accounting Services Agreement to Waddell & Reed Services Company (WRSCO), an indirect subsidiary of WDR. For these services, each Fund, other than Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund (the Ivy Managed Funds), pays WRSCO a monthly fee of one-twelfth of the annual fee shown in the following table:

Accounting Services Fee

Average Net Asset Level (in millions)						Annual Fee Rate for Each Level

From	$	0	to	$	10		$	0
From	$	10	to	$	25		$	11,500
From	$	25	to	$	50		$	23,100
From	$	50	to	$	100		$	35,500
From	$	100	to	$	200		$	48,400
From	$	200	to	$	350		$	63,200
From	$	350	to	$	550		$	82,500
From	$	550	to	$	750		$	96,300
From	$	750	to	$	1,000		$	121,600
	$	1,000 and Over					$	148,500

In addition, for each class of shares in excess of one, each Fund pays WRSCO a monthly per-class fee equal to 2.5% of the monthly accounting services base fee.

Under the Accounting and Administrative Services Agreement for the Ivy Managed Funds, each Fund pays WRSCO, for its services, a monthly fee of one-twelfth of the annual fee shown in the following table:

Accounting Services Fee

Average Net Asset Level (in millions)						Annual Fee Rate for Each Level

From	$	0	to	$	10		$	0
From	$	10	to	$	25		$	5,748
From	$	25	to	$	50		$	11,550
From	$	50	to	$	100		$	17,748
From	$	100	to	$	200		$	24,198
From	$	200	to	$	350		$	31,602
From	$	350	to	$	550		$	41,250
From	$	550	to	$	750		$	48,150
From	$	750	to	$	1,000		$	60,798
	$	1,000 and Over					$	74,250

In addition, for each class of shares in excess of one, each of the Ivy Managed Funds pays WRSCO a monthly per-class fee equal to 1.25% of the monthly accounting services base fee.

Under the Shareholder Servicing Agreement, except for the Ivy Managed Funds, with respect to Class A, Class B, Class C, Class E, Advisor Class and Class II shares, for each shareholder account that was in existence at any time during the prior month: Ivy Balanced Fund, Ivy Dividend Income Fund, Ivy International Balanced Fund, Ivy Real Estate Securities Fund, Ivy Small Cap Value Fund and Ivy Value Fund pay WRSCO a monthly fee of $1.5792; Ivy Bond Fund and Ivy Mortgage Securities Fund pay WRSCO a monthly fee of $1.6958; and Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Natural Resources Fund, Ivy International Growth Fund, Ivy International Core Equity Fund and Ivy Pacific Opportunities Fund each pay WRSCO a monthly fee of $1.5042. For Class I and Class Y shares, each Fund pays WRSCO a monthly fee at an annual rate of 0.15% of the average daily net assets of the class for the preceding month. For Class R shares, each Fund pays WRSCO a monthly fee at an annual rate of 0.20% of the average daily net assets of the class for the preceding month. Effective September 1, 2006, the Shareholder Servicing Agreement with respect to Class A, Class B and Class C shares has been revised so that each Fund pays WRSCO an annual fee (payable monthly) for each account of the Fund that is non-networked and is as shown above; however, WRSCO has agreed to reduce those fees if the number of total shareholders accounts within the Complex (Waddell & Reed Advisors Funds, Waddell & Reed InvestEd Porfolios, Inc., Ivy Funds and Ivy Funds, Inc.) reaches certain levels. For certain networked accounts (that is, those accounts whose Fund shares are purchased through certain intermediaries), WRSCO has agreed to reduce its per account fees charged to the Funds to $0.50 per month per shareholder account. Additional fees may be paid by the Funds to those intermediaries. Each Fund also reimburses WRSCO for certain out-of-pocket costs for all classes. Certain broker-dealers that maintain shareholder accounts with each Fund through an omnibus account provide transfer agent and other shareholder-related services that would otherwise be provided by WRSCO if the individual accounts that comprise the omnibus account were opened by their beneficial owners directly. WRSCO pays such broker-dealers a per account fee for each open account within the omnibus account, or a fixed rate (e.g., 0.10%) fee, based on the average daily net asset value of the omnibus account (or a combination thereof).

Under the Shareholder Servicing Agreement for the Ivy Managed Funds, no fee is charged to the Ivy Managed Funds as compensation for services rendered under this Shareholder Servicing Agreement. The Ivy Managed Funds do, however, reimburse any out-of-pocket expenses incurred by WRSCO in the performance of its duties under this Agreement, including long distance telephone communications costs; microfilm and storage costs for certain documents; forms, printing and mailing costs; charges of any sub-agent used by WRSCO in performing services under the Shareholder Servicing Agreement; and costs of legal and special services not provided by IFDI, IICO or WRSCO.

Pursuant to an Administrative Services Agreement, IICO provides certain administrative services to each Fund. The administrative fee for each Fund is a monthly fee at the annual rate of 0.01% of each Fund's average daily net assets.

As principal underwriter for the Trust's shares, Ivy Funds Distributor, Inc. (IFDI) receives sales commissions (which are not an expense of the Trust) for Class A and Class E shares. A contingent deferred sales charge (CDSC) may be assessed against a shareholder's redemption amount of Class B, Class C or certain Class A and Class E shares and is paid to IFDI. During the six-month period ended September 30, 2007, IFDI received the following amounts in sales commissions and CDSC:

	Sales Commissions			CDSC
	Sales Commissions			Class A		Class B		Class C		Class E

Ivy Balanced Fund		$	45,115	$	––	$	1,695	$	401	$	––
Ivy Bond Fund			83,193		246		999		257		––
Ivy Cundill Global Value Fund			629,640		1,916		53,892		4,490		––
Ivy Dividend Income Fund			249,624		2		6,952		1,037		––
Ivy European Opportunities Fund			771,824		––		14,646		5,047		––
Ivy Global Natural Resources Fund			3,050,203		––		192,933		70,761		––
Ivy International Balanced Fund			380,253		2,348		4,342		4,247		––
Ivy International Core Equity Fund			333,175		90		3,082		1,284		––
Ivy International Growth Fund			89,989		57		6,713		657		––
Ivy Managed European/Pacific Fund			322,542		––		235		105		––
Ivy Managed International Opportunities Fund			199,305		––		185		21		––
Ivy Mortgage Securities Fund			266,320		392		15,840		1,589		––
Ivy Pacific Opportunities Fund			957,419		––		11,458		1,915		––
Ivy Real Estate Securities Fund			609,404		1,440		15,130		3,166		––
Ivy Small Cap Value Fund			227,597		1,494		3,632		235		––
Ivy Value Fund			85,524		––		1,450		377		––

With respect to Class A, Class B, Class C and Class E shares, IFDI pays sales commissions and all expenses in connection with the sale of the Trust's shares, except for registration fees and related expenses. During the six-month period ended September 30, 2007, IFDI paid the following amounts:

Ivy Balanced Fund	$	44,551
Ivy Bond Fund		87,839
Ivy Cundill Global Value Fund		746,783
Ivy Dividend Income Fund		284,079
Ivy European Opportunities Fund		879,221
Ivy Global Natural Resources Fund		5,740,767
Ivy International Balanced Fund		482,212
Ivy International Core Equity Fund		412,838
Ivy International Growth Fund		111,880
Ivy Managed European/Pacific Fund		171,632
Ivy Managed International Opportunities Fund		299,254
Ivy Mortgage Securities Fund		277,043
Ivy Pacific Opportunities Fund		1,016,007
Ivy Real Estate Securities Fund		645,782
Ivy Small Cap Value Fund		240,148
Ivy Value Fund		94,945

Under a Distribution and Service Plan for Class A shares adopted by the Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940, each Fund may pay a distribution and/or service fee to IFDI in an amount not to exceed 0.25% of the Fund's average annual net assets attributable to that class. The fee is to be paid to reimburse IFDI for amounts it expends in connection with the distribution of the Class A shares and/or provision of personal services to Fund shareholders and/or maintenance of shareholder accounts. Under a Distribution and Service Plan for Class B and Class C shares adopted by the Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940, each Fund may pay IFDI a service fee in an amount not to exceed 0.25% of the Fund's average annual net assets attributable to that class. The fee is to be paid to reimburse IFDI for amounts it expends in connection with the provision of personal services to Fund shareholders and/or maintenance of shareholder accounts. Under the Distribution and Service Plan for Class B shares and Class C shares adopted by the Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940, each Fund may pay IFDI a distribution fee not to exceed 0.75% of the Fund's average annual net assets attributable to that class to compensate IFDI for its services in connection with the distribution of shares of that class. The Class B Plan and the Class C Plan each permit IFDI to receive compensation, through the distribution fee, for its distribution activities for that class. Under the Distribution and Service Plan for Class E shares adopted by the Trust on behalf of each of the Ivy Funds pursuant to Rule 12b-1 under the 1940 Act, each Fund may pay IFDI, the principal underwriter for the Fund, a fee up to 0.25% of the Fund's average annual net assets attributable to Class E shares, paid daily, to compensate IFDI for its costs and expenses in connection with, either directly or through others, the distribution of the Class E shares, the provision of personal services to Class E shareholders and/or maintenance of Class E shareholder accounts. The Class E Plan permits IFDI to be compensated for these Class E-related distribution activities through the distribution fee, subject to the limit contained in the Plan. The Class E Plan also permits IFDI to be compensated for amounts it expends: in compensating, training and supporting registered financial advisors, sales manager and/or other appropriate personnel in providing personal services to Class E shareholders of the funds and/or maintaining Class E shareholder accounts; increasing services provided to Class E shareholders of the Funds by office personnel located at field sales offices; engaging in other activities useful in providing personal service to Class E shareholders of the Funds and/or maintenance of Class E shareholder accounts; and in compensating broker-dealers and other third parties who may regularly sell Class E shares of the Funds, and may regularly provide shareholder services and/or maintain shareholder accounts with respect to Class E shares. Under the Class R Plan, each Fund may pay IFDI a fee of up to 0.50%, on an annual basis, of the average daily net assets attributable to that class to compensate IFDI for, either directly or through third parties, distributing the Class R shares of that Fund, providing personal service to Class R shareholders and/or maintenance of Class R shareholder accounts. Under the Class Y Plan, each Fund may pay IFDI a fee of up to 0.25%, on an annual basis, of the average daily net assets attributable to that class to compensate IFDI for, either directly or through third parties, distributing the Class Y shares of that Fund, providing personal service to Class Y shareholders and/or maintenance of Class Y shareholder accounts.

For Ivy Cundill Global Value Fund, Ivy Global Natural Resources Fund, Ivy International Core Equity Fund and Ivy Pacific Opportunities Fund, IICO has contractually agreed to reimburse a Fund's expenses, for the calendar year ended December 31, 2006, and for the following five years, to the extent necessary to ensure that the Fund's annual operating expenses, when calculated at the Fund level, do not exceed 2.50% of the Fund's average net assets (excluding 12b-1 fees and certain other expenses). During the six-month period ended September 30, 2007, IICO did not reimburse any of the Fund's expenses.

In addition, IFDI and WRSCO have voluntarily agreed to waive sufficient Fund expenses to ensure that the total annual fund operating expenses do not exceed the following levels for the specified funds/classes:

Fund and Class	Expense Limitation (as a percentage of average net assets of each Class)

Ivy Cundill Global Value Fund, Class A		1.90%
Ivy Cundill Global Value Fund, Class C		2.55%
Ivy Cundill Global Value Fund, Class Y		1.20%
Ivy Global Natural Resources Fund, Class A		1.70%
Ivy Global Natural Resources Fund, Class C		2.40%
Ivy Global Natural Resources Fund, Class Y		1.20%

During the six-month period ended September 30, 2007, IFDI reimbursed the Fund's service fees (in thousands) as shown:

Ivy Cundill Global Value Fund, Class Y		$	15
Ivy Global Natural Resources Fund, Class Y			132

During the six-month period ended September 30, 2007, the Funds paid Trustees' regular compensation of $220,538, which is included in other expenses.

NOTE 3 - Investment Securities Transactions

Investment securities transactions for the six-month period ended September 30, 2007 are summarized as follows:

	Ivy Balanced Fund		Ivy Bond Fund		Ivy Cundill Global Value Fund

Purchases of investment securities, excluding short-term and U.S. government securities	$	3,369,048	$	20,727,596	$	231,976,666
Purchases of U.S. government securities		––		16,726,929		––
Purchases of short-term securities		355,666,440		384,900,946		14,057,618,583
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities		8,877,948		9,849,967		244,752,711
Proceeds from maturities and sales of U.S. government securities		408,645		13,723,122		––
Proceeds from maturities and sales of short-term securities		352,786,927		380,638,693		14,131,855,000

	Ivy Dividend Income Fund		Ivy European Opportunities Fund		Ivy Global Natural Resources Fund

Purchases of investment securities, excluding short-term and U.S. government securities	$	38,689,398	$	201,219,097	$	4,750,012,824
Purchases of U.S. government securities		––		––		––
Purchases of short-term securities		802,885,737		1,385,403,926		9,022,749,613
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities		14,152,543		144,948,635		3,856,325,651
Proceeds from maturities and sales of U.S. government securities		––		––		––
Proceeds from maturities and sales of short-term securities	797,098,767			1,384,119,195		8,989,325,651

	Ivy International Balanced Fund		Ivy International Core Equity Fund		Ivy International Growth Fund

Purchases of investment securities, excluding short-term and U.S. government securities	$	70,036,503	$	176,456,642	$	122,734,364
Purchases of U.S. government securities		––		––		––
Purchases of short-term securities		861,721,262		662,267,306		623,649,791
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities		23,063,885		132,352,893		127,518,708
Proceeds from maturities and sales of U.S. government securities		––		––		––
Proceeds from maturities and sales of short-term securities		861,454,617		660,684,148		620,127,026

	Ivy Managed European/ Pacific Fund		Ivy Managed International Opportunities Fund		Ivy Mortgage Securities Fund

Purchases of investment securities, excluding short-term and U.S. government securities	$	30,165,562	$	55,696,326	$	40,695,970
Purchases of U.S. government securities		––		––		133,334,172
Purchases of short-term securities		49,200,000		91,168,000		1,160,569,186
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities		71,307		––		22,566,166
Proceeds from maturities and sales of U.S. government securities		––		––		133,612,283
Proceeds from maturities and sales of short-term securities		48,766,000		90,409,000		1,138,712,000

	Ivy Pacific Opportunities Fund		Ivy Real Estate Securities Fund		Ivy Small Cap Value Fund

Purchases of investment securities, excluding short-term and U.S. government securities	$	245,085,925	$	57,848,415	$	106,877,105
Purchases of U.S. government securities		––		––		––
Purchases of short-term securities		802,249,878		322,997,391		564,294,682
Purchases of options		3,600,005		––		––
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities		214,748,359		178,139,142		101,797,205
Proceeds from maturities and sales of U.S. government securities		––		––		––
Proceeds from maturities and sales of short-term securities		778,577,216		320,023,520		567,872,878
Proceeds from options		2,353,503		––		––

	Ivy Value Fund

Purchases of investment securities, excluding short-term and U.S. government securities	$	31,644,471
Purchases of U.S. government securities		––
Purchases of short-term securities		345,018,479
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities		30,653,743
Proceeds from maturities and sales of U.S. government securities		––
Proceeds from maturities and sales of short-term securities		341,791,806

For Federal income tax purposes, cost of investments owned at September 30, 2007 and the related unrealized appreciation (depreciation) were as follows:

		Cost		Appreciation	Depreciation		Aggregate Appreciation (Depreciation)

Ivy Balanced Fund	$	76,420,713	$	24,537,969	$	499,995	$	24,037,974
Ivy Bond Fund		90,009,791		407,237		2,242,890		(1,835,653	)
Ivy Cundill Global Value Fund		812,645,276		159,911,997		105,092,155		54,819,842
Ivy Dividend Income Fund		145,409,966		44,450,564		1,404,607		43,045,957
Ivy European Opportunities Fund		502,643,002		127,794,040		14,740,936		113,053,104
Ivy Global Natural Resources Fund		5,712,255,476		1,904,547,422		31,533,919		1,873,013,503
Ivy International Balanced Fund		296,183,993		50,894,612		5,416,073		45,478,539
Ivy International Core Equity Fund		247,092,280		42,959,946		2,115,530		40,844,416
Ivy International Growth Fund		194,727,906		77,058,835		2,202,039		74,856,796
Ivy Managed European/Pacific Fund		30,524,800		2,832,087		––		2,832,087
Ivy Managed International Opportunities Fund		56,455,326		3,218,270		––		3,218,270
Ivy Mortgage Securities Fund		375,980,810		1,543,922		10,839,609		(9,295,687	)
Ivy Pacific Opportunities Fund		439,115,590		236,060,737		7,194,141		228,866,596
Ivy Real Estate Securities Fund		401,940,249		135,412,897		5,895,437		129,517,460
Ivy Small Cap Value Fund		153,856,923		15,592,003		6,480,753		9,111,250
Ivy Value Fund		73,987,693		19,225,202		1,263,394		17,961,808

NOTE 4 - Federal Income Tax Matters

For Federal income tax purposes, the Funds' distributed and undistributed earnings and profit for the fiscal year ended March 31, 2007 and the related net capital losses and post-October activity were as follows:


	Ivy Balanced Fund		Ivy Bond Fund		Ivy Cundill Global Value Fund
Net ordinary income	$	988,959	$	2,847,833	$	25,207,346
Distributed ordinary income		1,085,606		2,841,082		14,086,154
Undistributed ordinary income		38,786*		36,210*		11,236,019

Realized long-term capital gains		653,025		––		51,372,008
Distributed long-term capital gains		––		––		35,772,161
Undistributed long-term capital gains		653,025		––		19,196,641

Net capital losses		––		461,131		––

Post-October losses deferred		––		––		287,658


	Ivy Dividend Income Fund			Ivy European Opportunities Fund			Ivy Global Natural Resources Fund
Net ordinary income		$	1,068,470		$	4,879,556		$	142,452,257
Distributed ordinary income			1,079,904			4,118,063			197,937,422
Undistributed ordinary income			28,255*			761,493			54,518,171

Realized long-term capital gains			2,824,612			10,359,289			250,403,581
Distributed long-term capital gains			1,389,185			––			220,660,776
Undistributed long-term capital gains			1,435,427			10,359,289			78,900,749

Net capital losses			––			––			––

Post-October losses deferred			––			––			573,848


	Ivy International Balanced Fund			Ivy International Core Equity Fund			Ivy International Growth Fund
Net ordinary income		$	6,270,627		$	7,228,646		$	566,909
Distributed ordinary income			5,842,010			837,091			244,825
Undistributed ordinary income			1,949,547			6,391,555			322,084

Realized long-term capital gains			4,862,347			12,068,191			––
Distributed long-term capital gains			5,666,925			6,971,717			––
Undistributed long-term capital gains			1,924,208			5,096,474			––

Net capital losses			––			––			––

Post-October losses deferred			––			44,740			––
*This entire amount was distributed prior to September 30, 2007.


	Ivy Mortgage Securities Fund			Ivy Pacific Opportunities Fund			Ivy Real Estate Securities Fund
Net ordinary income		$	14,179,448		$	16,574,426	$	13,944,969
Distributed ordinary income			14,174,142			6,928,367		8,767,618
Undistributed ordinary income			176,961*			14,509,064		7,085,430

Realized long-term capital gains			––			9,390,595		26,471,724
Distributed long-term capital gains			––			6,780,715		19,091,476
Undistributed long-term capital gains			––			4,211,703		12,870,552

Net capital losses			484,106			––		––

Post-October losses deferred			275,654			129,873		––

	Ivy Small Cap Value Fund			Ivy Value Fund

Net ordinary income		$	7,736,967	$	1,503,840
Distributed ordinary income			6,874,058		521,854
Undistributed ordinary income			4,223,778		1,011,126

Realized long-term capital gains			5,487,432		2,139,011
Distributed long-term capital gains			4,367,343		1,735,651
Undistributed long-term capital gains			2,187,065		878,555

Net capital losses			––		––

Post-October losses deferred			––		––

Internal Revenue Code regulations permit each Fund to defer into its next fiscal year net capital losses or net long-term capital losses and currency losses incurred between each November 1 and the end of its fiscal year (post-October losses).

Capital Loss Carryovers are available to offset future realized capital gain net income incurred in the 8 taxable years succeeding the loss year for Federal income tax purposes. The following shows the totals by year in which the capital loss carryovers will expire if not utilized.



March 31, 2008	$	––	$	––	$	407,464
March 31, 2009		28,681		––		77,610,725
March 31, 2010		––		167,845		146,210,535
March 31, 2011		––		––		47,213,802
March 31, 2015		461,131		––		––

Total carryover	$	489,812	$	167,845	$	271,442,526

*This entire amount was distributed prior to September 30, 2007.



March 31, 2008	$	––	$	157,220
March 31, 2009		––		157,220
March 31, 2010		––		157,220
March 31, 2014		164,447		––
March 31, 2015		484,106		––

Total carryover	$	648,553	$	471,660

Ivy Developing Markets Fund was merged into Ivy Pacific Opportunities Fund as of June 16, 2003. At the time of the merger, Ivy Developing Markets Fund had capital loss carryovers available to offset future gains of the Ivy Pacific Opportunities Fund. These carryovers are limited to $157,220 for each period ending from March 31, 2008 through 2010 plus any unused limitations from prior years.

Ivy International Growth Fund was merged into Ivy International Growth Fund (formerly, Ivy International Fund) as of March 27, 2006. At the time of the merger, Ivy International Growth Fund had capital loss carryovers available to offset future gains of the Ivy International Fund. These carryovers are limited to $7,403,026 for the period ending March 31, 2008 and $3,234,412 for each period ending from March 31, 2009 through 2010 plus any unused limitations from prior years and the amount of certain built-in gains realized, if any.

Note 5 - Multiclass Operations

Each Fund within the Trust offers five classes of shares, Class A, Class B, Class C, Class I and Class Y, and all Funds except Ivy Balanced Fund, Ivy European Opportunities Fund, Ivy International Growth Fund, Ivy Managed European/Pacific Fund, Ivy Managed International Opportunities Fund, Ivy Pacific Opportunities Fund, Ivy Small Cap Value Fund and Ivy Value Fund offer Class E shares. Each share class has equal rights as to assets and voting privileges. In addition, Ivy Global Natural Resources Fund and Ivy Real Estate Securities Fund offer Class R shares, which also have equal rights as to assets and voting privileges. Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Natural Resources Fund, Ivy International Core Equity Fund, Ivy International Growth Fund and Ivy Pacific Opportunities Fund also offered Advisor Class shares and Ivy Cundill Global Value Fund and Ivy International Growth Fund also offered Class II shares. Advisor Class and Class II shares are no longer available for investment. A comprehensive discussion of the terms under which shares of each class are offered is contained in the Prospectuses and the Statement of Additional Information for the Trust.

Income, non-class specific expenses, and realized and unrealized gains and losses are allocated daily to each class of shares based on the value of their relative net assets as of the beginning of each day adjusted for the prior day's capital share activity.

Transactions in capital stock for the six-month period ended September 30, 2007 are summarized below. Amounts are in thousands.



Shares issued from sale of shares:
Class A		322			2,165
Class B		18			64
Class C		39			273
Class E		6			40
Class I		6			16
Class Y		52			1
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		18			91
Class B		––	*		3
Class C		––	*		7
Class E		––	*		1
Class I		––	*		––	*
Class Y		10			––	*
Shares redeemed:
Class A		(377	)		(564	)
Class B		(13	)		(32	)
Class C		(34	)		(265	)
Class E		(––	)		(––	)*
Class I		(––	)		(1	)
Class Y		(217	)		(4	)

Increase (decrease) in outstanding capital shares		(170)			1,795

*Not shown due to rounding.

Value issued from sale of shares:
Class A	$	5,497		$	22,271
Class B		296			658
Class C		670			2,799
Class E		100			417
Class I		100			164
Class Y		897			8
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		312			940
Class B		1			33
Class C		4			72
Class E		1			7
Class I		1			4
Class Y		165			––	*
Value redeemed:
Class A	(6,408		)	(5,812		)
Class B		(226	)		(328	)
Class C		(577	)		(2,710	)
Class E	(––		)		(2	)
Class I	(––		)		(10	)
Class Y	(3,698		)		(42	)

Increase (decrease) in outstanding capital	$	(2,865	)	$	18,469

*Not shown due to rounding.



Shares issued from sale of shares:
Class A		4,618			2,203			2,072
Class B		140			114			169
Class C		799			254			203
Class E		20			41			2
Class I		156			6			697
Class Y		108			338			37
Advisor Class		––			NA			––
Class II		––			NA			NA
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		––			35			––
Class B		––			––	*		––
Class C		––			1			––
Class E		––			––	*		––
Class I		––			––	*		––
Class Y		––			1			––
Advisor Class		––			NA			––
Class II		––			NA			NA
Shares redeemed:
Class A		(6,959	)		(1,053	)		(1,199	)
Class B		(468	)		(69	)		(129	)
Class C		(3,089	)		(147	)		(164	)
Class E		(––	)*		(––	)*		(––	)
Class I		(29	)		(––	)		(13	)
Class Y		(279	)		(29	)		(80	)
Advisor Class		(16	)		NA			(4	)
Class II		(––	)		NA			NA

Increase (decrease) in outstanding capital shares		(4,999	)		1,695			1,591

*Not shown due to rounding.

Value issued from sale of shares:
Class A	$	75,677		$	36,907		$	88,620
Class B		2,262			1,892			7,009
Class C		12,916			4,240			8,420
Class E		332			676			100
Class I		2,557			100			29,817
Class Y		1,795			5,708			1,554
Advisor Class		––			NA			––
Class II		––			NA			NA
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		––			599			––
Class B		––			3			––
Class C		––			18			––
Class E		––			1			––
Class I		––			1			––
Class Y		––			13			––
Advisor Class		––			NA			––
Class II		––			NA			NA
Value redeemed:
Class A	(112,487		)	(17,742		)	(51,078		)
Class B		(7,423	)		(1,161	)	(5,306		)
Class C		(48,118	)		(2,462	)	(6,736		)
Class E		(1	)		(6	)		(––	)
Class I		(475	)		(––	)		(561	)
Class Y		(4,502	)		(486	)		(3,278	)
Advisor Class		(264	)		NA			(193	)
Class II		(––	)		NA			NA

Increase (decrease) in outstanding capital	$	(77,731	)	$	28,301		$	68,368



Shares issued from sale of shares:
Class A		28,702			2,791			2,816
Class B		944			116			141
Class C		8,170			637			398
Class E		39			25			40
Class I		1,108			1,332			639
Class R		221			NA			NA
Class Y		6,784			81			108
Advisor Class		––			NA			––
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		––			192			––
Class B		––			7			––
Class C		––			19			––
Class E		––			––	*		––
Class I		––			12			––
Class R		––			NA			NA
Class Y		––			––	*		––
Advisor Class		––			NA
Shares redeemed:
Class A		(12,899	)		(2,372	)		(1,535	)
Class B		(663	)		(62	)		(233	)
Class C		(2,751	)		(298	)		(205	)
Class E		(––	)*		(––	)*		(––	)*
Class I		(21	)		(6	)		(8	)
Class R		(52	)		NA			NA
Class Y		(1,024	)		(73	)		(69	)
Advisor Class		(1	)		NA			(––	)

Increase in outstanding capital shares		28,557			2,401			2,092

*Not shown due to rounding.
Value issued from sale of shares:
Class A	$	1,033,693		$	48,404		$	53,110
Class B		31,899			2,003			2,454
Class C		270,732			11,016			6,916
Class E		1,377			439			740
Class I		39,715			23,112			12,003
Class R		8,019			NA			NA
Class Y		243,824			1,403			2,035
Advisor Class		––			NA			––
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		––			3,295			––
Class B		––			112			––
Class C		––			332			––
Class E		––			4			––
Class I		––			213			––
Class R		––			NA			NA
Class Y		––			7			––
Advisor Class		––			NA			––
Value redeemed:
Class A	(459,693		)	(41,162		)	(28,758		)
Class B		(22,219	)	(1,061		)		(4,022	)
Class C		(90,557	)		(5,152	)		(3,546	)
Class E		(2	)		(1	)		(5	)
Class I		(781	)		(98	)		(151	)
Class R		(1,864	)		NA			NA
Class Y		(36,152	)		(1,243	)		(1,233	)
Advisor Class		(26	)		NA			(––	)

Increase in outstanding capital	$	1,017,965		$	41,623		$	39,543



Shares issued from sale of shares:
Class A		307			2,581			4,917
Class B		21			94			182
Class C		50			128			216
Class E		3			20			20
Class I		366			20			20
Class Y		9			24			38
Advisor Class		––			NA			NA
Class II		––			NA			NA
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		––			––			––
Class B		––			––			––
Class C		––			––			––
Class E		––			––			––
Class I		––			––			––
Class Y		––			––			––
Advisor Class		––			NA			NA
Class II		––			NA			NA
Shares redeemed:
Class A		(636	)		(82	)		(131	)
Class B		(52	)		(8	)		(5	)
Class C		(147	)		(2	)		(13	)
Class E		(––	)		(––	)		(––	)
Class I		(11	)		(––	)		(––	)
Class Y		(53	)		(––	)		(––	)
Advisor Class		(––	)		NA			NA
Class II		(1	)		NA			NA

Increase (decrease) in outstanding capital shares		(144	)		2,775			5,244


Value issued from sale of shares:
Class A	$	11,295		$	28,282		$	52,267
Class B		717			1,011			1,918
Class C		1,657			1,383			2,274
Class E		100			200			200
Class I		13,508			200			200
Class Y		325			251			398
Advisor Class		––			NA			NA
Class II		––			NA			NA
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		––			––			––
Class B		––			––			––
Class C		––			––			––
Class E		––			––			––
Class I		––			––			––
Class Y		––			––			––
Advisor Class		––			NA			NA
Class II		––			NA			NA
Value redeemed:
Class A	(23,412		)	(909		)		(1,376	)
Class B	(1,751		)		(84	)		(57	)
Class C		(4,943	)		(25	)		(140	)
Class E		(––	)		(––	)		(––	)
Class I		(401	)		(––	)		(––	)
Class Y		(1,864	)		(––	)		(––	)
Advisor Class		(––	)		NA			NA
Class II		(44	)		NA			NA

Increase (decrease) in outstanding capital	$	(4,813	)	$	30,309		$	55,684



Shares issued from sale of shares:
Class A		6,209			4,980			1,965
Class B		327			230			63
Class C		400			332			91
Class E		17			6			16
Class I		30			1,144			85
Class R		NA			NA			2
Class Y		332			137			113
Advisor Class		NA			––			NA
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		600			––			23
Class B		20			––			––
Class C		33			––			––
Class E		––	*		––			––	*
Class I		1			––			––	*
Class R		NA			NA			––	*
Class Y		23			––			21
Advisor Class		NA			––			NA
Shares redeemed:
Class A		(4,258	)		(3,104	)		(3,377	)
Class B		(151	)		(194	)		(158	)
Class C		(366	)		(293	)		(302	)
Class E		(––	)*		(––	)		(––	)*
Class I		(6	)		(62	)		(23	)
Class R		NA			NA			(1	)
Class Y		(413	)		(257	)		(3,597	)
Advisor Class		NA			(––	)		NA

Increase (decrease) in outstanding capital shares		2,798			2,919			(5,079)

*Not shown due to rounding.

Value issued from sale of shares:
Class A	$	64,764		$	97,948		$	48,699
Class B		3,401			4,093			1,557
Class C		4,168			6,091			2,268
Class E		181			100			420
Class I		323			21,954			2,222
Class R		NA			NA			40
Class Y		3,472			2,793			2,762
Advisor Class		NA			––			NA
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		6,256			––			559
Class B		209			––			––
Class C		348			––			––
Class E		3			––			––
Class I		6			––			6
Class R		NA			NA			––	*
Class Y		239			––			513
Advisor Class		NA			––			NA
Value redeemed:
Class A	(44,412		)	(59,620		)	(81,238		)
Class B		(1,575	)		(3,443	)		(3,736	)
Class C		(3,819	)		(5,215	)		(7,161	)
Class E		(3	)	(––		)	(1		)
Class I		(67	)	(1,242		)	(560		)
Class R		NA		NA			(17		)
Class Y		(4,307	)	(4,582		)	(86,883		)
Advisor Class		NA			(––	)		NA

Increase (decrease) in outstanding capital	$	29,187		$	58,877		$	(120,550)

*Not shown due to rounding.



Shares issued from sale of shares:
Class A		1,907			767
Class B		66			61
Class C		83			56
Class E		6			5
Class I		43			5
Class Y		67			––	*
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		––			12
Class B		––			––
Class C		––			––
Class E		––			––	*
Class I		––			––	*
Class Y		––			––	*
Shares redeemed:
Class A		(1,557	)		(648	)
Class B		(120	)		(57	)
Class C		(158	)		(56	)
Class E		(––	)		(––	)
Class I		(8	)		(––	)
Class Y		(216	)		(––	)*

Increase in outstanding capital shares		113			145

*Not shown due to rounding.

Value issued from sale of shares:
Class A	$	31,112		$	15,302
Class B		1,021			1,192
Class C		1,307			1,123
Class E		100			100
Class I		717			100
Class Y		1,111			––	*
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		––			237
Class B		––			––
Class C		––			––
Class E		––			––	*
Class I		––			1
Class Y		––			––	*
Value redeemed:
Class A	(25,246		)	(12,874		)
Class B	(1,842		)		(1,127	)
Class C	(2,480		)		(1,107	)
Class E	(––		)		(––	)
Class I	(139		)		(––	)
Class Y	(3,514		)		(––	)*

Increase in outstanding capital	$	2,147		$	2,947

*Not shown due to rounding.

Transactions in capital stock for the fiscal year ended March 31, 2007 are summarized below. Amounts are in thousands.

	Ivy Balanced Fund

Shares issued from sale of shares:
Class A		763			1,752
Class B		74			96
Class C		117			403
Class Y		605			4
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		40			123
Class B		––	*		5
Class C		1			8
Class Y		26			––	*
Shares redeemed:
Class A		(891	)		(1,129	)
Class B		(50	)		(67	)
Class C		(62	)		(189	)
Class Y		(1,352	)		(2	)

Increase (decrease) in outstanding capital shares		(729	)		1,004


Value issued from sale of shares:
Class A	$	11,988		$	18,156
Class B		1,146			996
Class C		1,841			4,183
Class Y		9,521			42
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		636			1,280
Class B		3			50
Class C		8			80
Class Y		411			2
Value redeemed:
Class A	(13,917		)	(11,724		)
Class B	(773		)		(699	)
Class C	(968		)		(1,956	)
Class Y	(21,240		)		(24	)

Increase (decrease) in outstanding capital	$	(11,344	)	$	10,386

*Not shown due to rounding.



Shares issued from sale of shares:
Class A		11,695			3,823			4,299
Class B		586			242			270
Class C		3,326			498			431
Class Y		196			137			110
Advisor Class		––			NA			––
Class II		––			NA			NA
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		2,079			127			88
Class B		161			8			4
Class C		641			17			5
Class Y		39			2			2
Advisor Class		11			NA			––	*
Class II		––	*		NA			NA
Shares redeemed:
Class A		(11,797	)		(1,412	)		(1,798	)
Class B		(831	)		(107	)		(310	)
Class C		(3,225	)		(240	)		(348	)
Class Y		(361	)		(26	)		(50	)
Advisor Class		(20	)		NA			(19	)
Class II		(––	)		NA			NA

Increase in outstanding capital shares		2,500			3,069			2,684

*Not shown due to rounding.

Value issued from sale of shares:
Class A	$	181,422		$	57,590		$	155,748
Class B		8,886			3,622			9,546
Class C		50,324			7,446			15,127
Class Y		3,046			2,107			4,028
Advisor Class		––			NA			––
Class II		––			NA			NA
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		32,120			1,941			3,391
Class B		2,444			126			136
Class C		9,682			259			198
Class Y		602			26			68
Advisor Class		173			NA			12
Class II		1			NA			NA
Value redeemed:
Class A	(182,765		)	(21,237		)	(64,019		)
Class B		(12,526	)		(1,609	)	(10,625		)
Class C		(48,759	)		(3,596	)	(11,838		)
Class Y		(5,541	)		(392	)		(1,746	)
Advisor Class		(321	)		NA			(672	)
Class II		(––	)		NA			NA

Increase in outstanding capital	$	38,788		$	46,283		$	99,354



Shares issued from sale of shares:
Class A		44,041			7,862			5,938
Class B		2,245			576			464
Class C		14,135			1,287			1,226
Class R		128			NA			NA
Class Y		6,910			83			199
Advisor Class		––			NA			––
Class II		NA			NA			NA
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		7,438			566			292
Class B		648			29			21
Class C		2,648			56			56
Class R		3			NA			NA
Class Y		425			3			5
Advisor Class		1			NA			––
Class II		NA			NA			NA
Shares redeemed:
Class A		(23,141	)		(1,840	)		(1,416	)
Class B		(1,584	)		(253	)		(440	)
Class C		(6,347	)		(182	)		(231	)
Class R		(12	)		NA			NA
Class Y		(1,415	)		(31	)		(52	)
Advisor Class		(3	)		NA			(––	)
Class II		NA			NA			NA

Increase in outstanding capital shares		46,120			8,156			6,062


Value issued from sale of shares:
Class A	$	1,355,319		$	127,445		$	97,987
Class B		65,627			9,278			7,113
Class C		404,164			20,788			18,787
Class R		3,867			NA			NA
Class Y		214,763			1,362			3,361
Advisor Class		––			NA			––
Class II		NA			NA			NA
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		228,809			9,230			4,915
Class B		18,786			472			328
Class C		75,247			914			877
Class R		110			NA			NA
Class Y		13,131			53			83
Advisor Class		25			NA			––
Class II		NA			NA			NA
Value redeemed:
Class A	(705,593		)	(29,494		)	(23,415		)
Class B		(45,518	)	(4,181		)		(6,571	)
Class C		(178,056	)		(2,929	)		(3,545	)
Class R		(369	)		NA			NA
Class Y		(43,417	)		(502	)		(847	)
Advisor Class		(90	)		NA			(––	)
Class II		NA			NA			NA

Increase in outstanding capital	$	1,406,805		$	132,436		$	99,073



Shares issued from sale of shares:
Class A		672			9,873			12,129
Class B		81			358			699
Class C		133			806			1,079
Class Y		44			926			444
Advisor Class		––			NA			––
Class II		––			NA			NA
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		6			1,061			702
Class B		––			36			43
Class C		––			63			61
Class Y		––	*		36			15
Advisor Class		––			NA			––	*
Class II		––	*		NA			NA
Shares redeemed:
Class A		(1,134	)		(7,938	)		(3,940	)
Class B		(192	)		(327	)		(298	)
Class C		(396	)		(854	)		(371	)
Class Y		(108	)		(425	)		(246	)
Advisor Class		(––	)		NA			(––	)*
Class II		(1	)		NA			NA

Increase (decrease) in outstanding capital shares		(895	)		3,615			10,317

*Not shown due to rounding.

Value issued from sale of shares:
Class A	$	20,944		$	103,705		$	186,431
Class B		2,325			3,756			9,928
Class C		3,806			8,470			15,685
Class Y		1,416			9,736			6,813
Advisor Class		––			NA			––
Class II		––			NA			NA
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		187			11,153			11,390
Class B		––			375			636
Class C		––			665			927
Class Y		7			380			250
Advisor Class		––			NA			1
Class II		1		NA			NA
Value redeemed:
Class A		(34,986	)		(83,295	)		(59,663	)
Class B		(5,467	)		(3,431	)		(4,184	)
Class C		(11,362	)		(8,958	)		(5,310	)
Class Y		(3,203	)		(4,465	)		(3,734	)
Advisor Class		(––	)		NA			(3	)
Class II		(40	)		NA			NA

Increase (decrease) in outstanding capital	$	(26,372	)	$	38,091		$	159,167



Shares issued from sale of shares:
Class A		6,162			3,124			1,485
Class B		273			170			130
Class C		402			279			118
Class R		1			NA			NA
Class Y		2,397			328			78
Shares issued from reinvestment of dividends and/or capital gains distribution:
Class A		564			494			105
Class B		27			38			6
Class C		31			57			6
Class R		––	*		NA			NA
Class Y		446			100			3
Shares redeemed:
Class A		(2,689	)		(1,460	)		(1,195	)
Class B		(108	)		(98	)		(94	)
Class C		(162	)		(172	)		(85	)
Class R		(––	)*		NA			NA
Class Y		(2,052	)		(615	)		(780	)

Increase (decrease) in outstanding capital shares		5,292			2,245			(223)


Value issued from sale of shares:
Class A	$	153,443		$	50,177		$	26,492
Class B		6,799			2,628			2,306
Class C		9,917			4,335			2,080
Class R		26			NA			NA
Class Y		59,904			5,363			1,375
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A		14,369			7,895			1,951
Class B		693			582			119
Class C		802			882			104
Class R		5			NA			NA
Class Y		11,342			1,623			59
Value redeemed:
Class A	(66,195		)	(23,341		)	(21,241		)
Class B		(2,682	)		(1,509	)		(1,660	)
Class C		(3,986	)		(2,691	)		(1,501	)
Class R	(––		)*	NA			NA
Class Y	(49,828		)	(10,060		)	(14,417		)

Increase (decrease) in outstanding capital	$	134,609		$	35,884		$	(4,333	)

*Not shown due to rounding.

NOTE 6 - Options

Options purchased by a Fund are accounted for in the same manner as marketable portfolio securities. The cost of portfolio securities acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from securities sold through the exercise of put options are decreased by the premium paid to purchase the put.

When a Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded as a liability. The amount of the liability is subsequently adjusted to reflect the current market value of the option written. The current market value of an option is the last sales price on the principal exchange on which the option is traded or, in the absence of transactions, the mean between the bid and asked prices or at a value supplied by a broker-dealer. When an option expires on its stipulated expiration date or a Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the call option was sold) and the liability related to such option is extinguished. When a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has realized a gain or loss. For each Fund, when a written put is exercised, the cost basis of the securities purchased by the Fund is reduced by the amount of the premium received.

For Ivy Pacific Opportunities Fund, transactions in written call options were as follows:



Outstanding at March 31, 2007	––		$	––
Options written	321,429		1,476,002
Options terminated in closing purchase transactions	(––	)	(––		)
Options exercised	(––	)	(––		)
Options expired	(––	)	(––		)

Outstanding at September 30, 2007	321,429		$	1,476,002

For Ivy Pacific Opportunities Fund, transactions in written put options were as follows:



Outstanding at March 31, 2007	––		$	––
Options written	321,429			540,001
Options terminated in closing purchase transactions	(––	)		(––	)
Options exercised	(––	)	(––		)
Options expired	(––	)	(––		)

Outstanding at September 30, 2007	321,429		$	540,001

For Ivy Value Fund, transactions in written call options were as follows:



Outstanding at March 31, 2007	977		$	51,169
Options written	2,010			153,630
Options terminated in closing purchase transactions	(110	)	(4,020		)
Options exercised	(937	)	(69,463		)
Options expired	( 1,627	)	(107,417		)

Outstanding at September 30, 2007	313		$	23,899

For Ivy Value Fund, transactions in written put options were as follows:



Outstanding at March 31, 2007	214		$	34,127
Options written	1,873			252,568
Options terminated in closing purchase transactions	(832	)	(171,790		)
Options exercised	(466	)	(49,870		)
Options expired	(427	)	(38,007		)

Outstanding at September 30, 2007	362		$	27,028

NOTE 7 - Futures

The Trust may engage in buying and selling futures contracts. Upon entering into a futures contract, the Trust is required to deposit, in a segregated account, an amount of cash or United States Treasury Bills equal to a varying specified percentage of the contract amount. This amount is known as the initial margin. Subsequent payments (variation margins) are made or received by the Trust each day, dependent on the daily fluctuations in the value of the underlying debt security or index. These changes in the variation margins are recorded by the Trust as unrealized gains or losses. Upon the closing of the contracts, the cumulative net change in the variation margin is recorded as realized gain or loss. The Trust uses futures to attempt to reduce the overall risk of its investments.

NOTE 8 - Affiliated Company Transactions

The Ivy Managed Funds make investments in funds within the Ivy Funds family, which funds may be deemed to be under common control because the Funds share the same board of trustees. A summary of the transactions in each underlying fund during the six months ended September 30, 2007 follows:

	3/31/07 Share Balance	Purchase Cost	Sales Cost	Realized Gain/ (Loss)	Distributions Received ⁽¹⁾	9/30/07 Share Balance	9/30/07 Market Value

Ivy Managed European/Pacific Fund
Ivy European Opportunities Fund, Class I	––	$18,099,337	$45,766	$(2,982)	$ ––	420,342	$18,532,888
Ivy Pacific Opportunities Fund, Class I	––	12,066,225	28,995	(472)	––	614,432	14,389,999
Ivy Managed International Opportunities Fund
Ivy European Opportunities Fund, Class I	––	8,324,452	––	––	––	193,551	8,533,662
Ivy International Balanced Fund, Class I	––	22,398,517	––	––	199,927	1,289,772	22,790,277
Ivy International Core Equity Fund, Class I	––	11,099,270	––	––	––	588,778	11,869,753
Ivy International Growth Fund, Class I	––	8,324,452	––	––	––	224,773	9,078,596
Ivy Pacific Opportunities Fund, Class I	––	5,549,635	––	––	––	283,617	6,642,308
(1)Distributions received includes distributions from net investment income and/or from capital gains from the underlying funds.

Renewal of Investment Management Agreements for the Ivy Funds

At a Meeting of the Board of Trustees of Ivy Funds (the "Trust") held on August 28 and 29, 2007, the Trustees, including all of the Trustees who are not "interested persons" as defined in Section 2(a)(19) of the 1940 Act, unanimously approved the continuance of the existing management agreements between Ivy Investment Management Company ("IICO") and the Trust. The existing management agreements considered were (i) the Master Business Management and Investment Advisory Agreement between the Trust and IICO (with respect to the Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy International Growth Fund, Ivy International Core Equity Fund and the Ivy Pacific Opportunities Fund); (ii) the Investment Management Agreement between the Trust and IICO (with respect to the Ivy Dividend Fund, Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund); (iii) the Investment Management Agreement between the Trust and IICO (with respect to the Ivy Balanced Fund, Ivy Bond Fund, Ivy International Balanced Fund, Ivy Mortgage Securities Fund, Ivy Real Estate Securities Fund, Ivy Small Cap Value Fund, Ivy Value Fund and the Ivy Global Natural Resources Fund); and (iv) the Subadvisory Agreements between IICO and:

Henderson Investment Management Limited and Henderson Global Investors (North America) Inc. (Ivy European Opportunities Fund)
Advantus Capital Management, Inc. (Ivy Bond Fund, Ivy Mortgage Securities Fund, Ivy Real Estate Securities Fund)
Templeton Investment Counsel, LLC (Ivy International Balanced Fund)
BlackRock Capital Management, Inc. (Ivy Small Cap Value Fund)
Mackenzie Financial Corporation (Ivy Cundill Global Value Fund and Ivy Global Natural Resources Fund).

(each such subadviser referred to herein as a "Subadviser").

The Board's Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its review of the various agreements, including, among other things, the nature and the quality of the services provided by IICO, profitability (including any fall-out benefits) from the relationships with the Funds, economies of scale, the role played by the Independent Trustees, and information on comparative fees and expenses. The Board also considered the written responses and supplementary materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees' counsel prior to the meeting. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO. The Board also received extensive materials on performance, expenses and comparable fund information from Lipper, Inc., an independent mutual fund rating service. Finally, the Independent Trustees received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Trustees discussed this material extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members, after which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board's determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the fact that they were provided with performance and expense information for each of the Funds during the year in regularly scheduled Board meetings, during which they met with the Funds' portfolio managers and other investment personnel. In that regard, they discussed the nature, extent and quality of services provided to each Fund by IICO and each Subadviser, taking into account the investment objective and strategy of the Fund and the knowledge the Board gained from those regular meetings, including from the materials provided in connection with those meetings. In addition, the Board reviewed the resources and key personnel of IICO and each Subadviser. The Board also considered other services provided to the Funds by IICO and each Subadviser, such as managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to the Funds' investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations. The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with the Funds

The Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. The Board considered benefits that accrue to each organization from its respective relationship with a Fund, including the fact that a variety of services are provided by affiliates of IICO, including distribution, shareholder servicing and transfer agency services. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receive any additional direct or indirect benefits that would preclude the Board from approving the continuation of the investment advisory contract with IICO or the investment sub-advisory agreements.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds' shareholders. In that context, the Board discussed the current level of the Funds' advisory fee breakpoints and also considered the current and anticipated asset levels of the Funds and the potential for growth in each Fund. With respect to the Global Natural Resources Fund, the Board requested that management examine the continuing appropriateness of that Fund's breakpoint schedule. The Board also noted that as the assets of the Funds continue to increase, the Funds' expense ratios generally continue to fall. Except as noted, the Board concluded that the current asset size of the Funds and other relevant factors did not warrant further reevaluation or restructuring of the fee breakpoints for the Funds at this time.

Performance of the Funds and Costs of Services Provided

The Board considered, on a Fund by Fund basis, the performance of each Fund and the costs of the services provided. The Board focused particularly on the Ivy Real Estate Securities Fund, Ivy Cundill Global Value Fund, Ivy Small Cap Value Fund and Ivy Pacific Opportunities Fund.

Specifically, the Board examined the investment performance of each Fund, including quintile ranking for short- and long-term time periods and each Fund's performance against its peers. The Board also examined the performance of each Fund against its respective Lipper index for the same periods. After extensively reviewing all of the performance information provided, the Board concluded that the Funds' performance in each asset class was acceptable. Although the performance of some of the focus Funds identified by the independent fee consultant lagged that of their peers or respective Lipper index, the Board recognized that IICO or the applicable subadviser had taken, or was taking, steps to address that underperformance, and determined to continue to monitor closely the performance of those Funds.

The Board also considered the expenses of each Fund, the expense ratio of each Fund, and the expense limitation arrangements entered into by IICO in light of the services provided by IICO and each Sub-Adviser. The Board also compared each Fund's expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to separately managed accounts in the same asset class for certain Funds. In that regard, the Board noted that IICO performs significant additional services for those Funds. The Board also took into account the information on IICO's profitability in managing the Funds, including the methodology used to calculate profitability. The Board finally considered the amount of assets in each Fund, each Fund's average account size and how those factors affect the Funds' expense ratios. After completing this examination, the Independent Directors concluded that the Fund's expenses are appropriate at the current time.

The Board of Directors/Trustees for each of the mutual funds has appointed an independent fee consultant. Posted below is a summary of the written fee evaluation of such consultant for the most recent year.

During August of 2007, and as part of their regularly scheduled meetings, the Boards of Trustees of Ivy Funds and the Board of Directors of Ivy Funds, Inc. (collectively, the "Ivy Funds" and any separate series thereof an "Ivy Fund") reviewed significant information in connection with considering the continuation of existing investment management agreements currently in effect between Ivy Investment Management Company ("IICO") and the Ivy Funds. Pursuant to the Assurance of Discontinuance between Waddell & Reed, Inc., Waddell & Reed Services Company ("WRSCO"), and Waddell & Reed Investment Management Company (collectively, "Waddell") and the Office of the New York Attorney General dated July 10, 2006 ("Assurance of Discontinuance"), the Trustees/Directors of the Ivy Funds engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO, an affiliate of Waddell, to the Ivy Funds. The independent fee consultant's review addressed the following fee-related factors:

1. The nature and quality of IICO's services to the Ivy Funds, including performance

2. Management fees (including any components thereof) charged by other mutual fund companies for like services

3. Management fees (including any components thereof) charged to institutional and other clients of IICO for like services

4. Costs to IICO and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit

5. Profit margins of IICO and its affiliates from supplying such services

6. Possible economies of scale as a fund grows larger

The following summarizes the findings of the independent fee consultant retained by the Trustees/Directors. ¹

¹The independent fee consultant's evaluation was based on information provided by IICO, Lipper, Inc., other information providers and other independent analyses. The term "management fees" refers to the actual annual advisory and administrative fees, net of any fee waivers, paid by an Ivy Fund, as a percentage of such fund's average net assets. The term "total expenses" refers to the total annual expenses, net of any fee waivers, paid by an Ivy Fund, as a percentage of such fund's average net assets. Where these terms are used in reference to groups of Ivy Funds, numbers expressed are on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending February 28, 2007. In other areas, data is from various periods ending between December 31, 2006 and July 31, 2007.

Summary Findings

The independent fee consultant believes that IICO delivers strong levels of performance and service to the Ivy Funds in relation to IICO management fees and relative to investment advisers of comparable mutual funds. For the 36 months ended April 30, 2007, when compared to their respective peer groups established by Lipper, Inc. ("Lipper") approximately: (a) 21% of the Ivy Funds were in the top 10 percentiles; (b) 33% of the Ivy Funds were in the top quartile of performance; and (c) 62% of the Ivy Funds were in the top two quartiles. The independent fee consultant noted that the Ivy Funds' performance appears to be grounded in a number of institutional competitive advantages at IICO, including stock selection ability, ability to attract top talent, strategic vision, performance-focused culture, ability to manage smaller AUM funds, ability to serve small account sizes and an effective trading infrastructure.

For the 12 months ended March 31, 2007, the total expenses of the Ivy Funds on average were 7% above the mean total expenses of their respective Lipper Expense Group peers and 1% below the mean total expenses for their Lipper Expense Universes. The management fees for the Ivy Funds on average were 9% above the mean management fees for their Lipper Expense Groups and 10% above the means for their Lipper Expense Universes. Ivy Funds' small average account size and small fund AUM introduces certain biases in the Lipper analyses that can work against Ivy Funds in Lipper expense comparisons. As a result, the Lipper findings can be considered conservative. Within the larger Lipper averages, the management fees and total expenses of individual Ivy Funds and share classes are reasonable relative to their performance.

The independent fee consultant believes that the management fees IICO charges to the Ivy Funds also are reasonable in relation to the management fees it charges to its other institutional accounts. These institutional accounts have different service and infrastructure needs. Moreover, based on industry data, the average spread between management fees charged to the Ivy Funds and those charged to institutional accounts is below the average fee spreads observed at other investment advisers.

The independent fee consultant found that the level of profit earned by IICO from managing the Ivy Funds does not appear to be unreasonable. Waddell's overall profitability from managing the Ivy Funds and its other operations is below the mean profitability of other publicly traded peers, but appears adequate to enable IICO to continue to provide quality support to the Ivy Funds and their shareholders.

Analyses was undertaken by the independent fee consultant to measure economies of scale in the industry in a manner that would give an overall "net" view of any economies or diseconomies of scale across all cost elements. This analysis, however, was unable to quantitatively assess or confirm overall economies of scale in the IICO complex. A separate economy of pricing analysis, also undertaken by the independent fee consultant, did show that Ivy Funds incur lower fees and expenses with increasing fund AUM and with increasing average account size which the independent fee consultant believes should benefit Ivy Fund investors as the Ivy Funds mature.

Conclusions

The independent fee consultant concluded that the services provided by IICO and its affiliates and expenses incurred by the Ivy Funds over the year ending August 31, 2007 are reasonable and provide adequate justification for renewal of the Ivy Funds' existing advisory agreements.

Proxy Voting Information

Proxy Voting Guidelines

A description of the policies and procedures Ivy Funds uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 800.777.6472 and (ii) on the Securities and Exchange Commission's (SEC) website at www.sec.gov.

Proxy Voting Records

Information regarding how Ivy Funds voted proxies relating to portfolio securities during the most recent 12 month period ending June 30 is available on Form N-PX through the Ivy Funds' website at www.ivyfunds.com and on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule Information

A complete schedule of portfolio holdings for the first and third quarters of each fiscal year is filed with the Securities and Exchange Commission (SEC) on the Fund's Form N-Q. This form may be obtained in the following ways:

On the SEC's website at www.sec.gov.
For review and copy at the SEC's Public Reference Room in Washington, DC. Information on the operations of the Public Reference Room may be obtained by calling 1.800.SEC.0330.
On the Ivy Funds' website at www.ivyfunds.com.

To All Traditional IRA Planholders:

As required by law, we are hereby providing notice to you that income tax may be withheld automatically from any distribution or withdrawal from a traditional IRA. A Fund is generally required to withhold taxes unless you make a written election not to have taxes withheld. The election may be made on the distribution/withdrawal form provided by Waddell & Reed, Inc. which can be obtained from your Waddell & Reed representative or by submitting Internal Revenue Service Form W-4P. Once made, an election can be revoked by providing written notice to Waddell & Reed, Inc. If you elect not to have tax withheld you may be required to make payments of estimated tax. Penalties may be imposed by the IRS if withholding and estimated tax payments are not adequate.

THE IVY FUNDS FAMILY

Global/International Funds

Cundill Global Value Fund
European Opportunities Fund
International Balanced Fund
International Core Equity Fund
International Growth Fund
Managed European/Pacific Fund
Managed International Opportunities Fund
Pacific Opportunities Fund

Domestic Equity Funds

Capital Appreciation Fund
Core Equity Fund
Dividend Income Fund
Large Cap Growth Fund
Mid Cap Growth Fund
Small Cap Growth Fund
Small Cap Value Fund
Value Fund

Fixed Income Funds

Bond Fund
High Income Fund
Limited-Term Bond Fund
Mortgage Securities Fund
Municipal Bond Fund

Money Market Funds

Money Market Fund

Specialty Funds

Asset Strategy Fund
Balanced Fund
Energy Fund
Global Natural Resources Fund
Real Estate Securities Fund
Science and Technology Fund

1.800.777.6472
Visit us online at www.ivyfunds.com

The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Funds Distributor, Inc.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for the Ivy Funds, call your financial advisor or visit us online at www.ivyfunds.com. Please read the prospectus carefully before investing.

WRR3300SA (9-07)

ITEM 2. CODE OF ETHICS

Required in annual report only.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Required in annual report only.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Required in annual report only.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

See Item 1 Shareholder Report.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END

MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's board of directors.

ITEM 11. 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 second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Required in annual report only.

(a)(2) 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.

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

Attached hereto as Exhibit 99.906CERT.

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: December 7, 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, President and Principal Executive Officer

Date: December 7, 2007

By /s/Joseph W. Kauten

Joseph W. Kauten, Vice President and Principal Financial Officer

Date: December 7, 2007