N-CSRS

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, 2008

ITEM 1. REPORTS TO STOCKHOLDERS.

Semiannual Report
September 30, 2008


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

3	President's Letter
5	Illustration of Fund Expenses
15	Ivy Dividend Opportunities Fund
30	Ivy Small Cap Value Fund
45	Ivy Value Fund
60	Ivy Managed European/Pacific Fund
71	Ivy Managed International Opportunities Fund
82	Ivy Cundill Global Value Fund
97	Ivy European Opportunities Fund
112	Ivy International Balanced Fund
131	Ivy International Core Equity Fund
147	Ivy International Growth Fund
163	Ivy Pacific Opportunities Fund
181	Ivy Balanced Fund
197	Ivy Global Natural Resources Fund
219	Ivy Real Estate Securities Fund
233	Ivy Bond Fund
259	Ivy Global Bond Fund
277	Ivy Mortgage Securities Fund
301	Notes to Financial Statements
350	Renewal of Investment Management Agreement
354	Proxy Voting Information
354	Quarterly Portfolio Schedule Information
354	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, 2008
Dear Shareholder:

Not since the founding of our organization more than 70 years ago have investors faced so many challenges in such a short period of time. In a single calendar quarter, this country's largest savings and loan, its largest insurance company, its two largest mortgage providers, its largest brokerage firm and a leading commercial bank were the subject of a takeover, bailout or failure. On top of that, some money market funds in the industry have been unable to maintain a $1 a share net asset value. A severe credit crunch has taken hold.

Confidence has been shaken in bond and stock markets around the globe, and mutual fund returns of the past year reflect the emotional insecurity that comes with hard times. Enclosed is our report on your Ivy Funds' operations for the first six months of the current fiscal year. For the six months ended Sept. 30, 2008, the S&P 500 Index fell 11.3 percent, with most of the drop occurring in September. September was also the worst month for U.S. corporate bonds in more than two decades.

Can we learn from history?

While unusual in modern times, a rapidly unfolding financial panic is nothing new in American history. In fact, prior to the creation of the Federal Reserve bank system in 1912, the U.S. experienced seven major financial crises between 1819 and 1907. In some respects, some of the same issues that plague us today - fallout from excessive commodity and property speculation, war-related debt and populist dislike of government bailouts - parallel the challenges that generations past have had to deal with. Our leaders met these problems successfully, though very often not promptly.

For example, history judged President Martin Van Buren harshly for failing to take timely steps to limit economic damage from the Panic of 1837, which occurred just five weeks after he took office. The ensuing depression lasted for six years, and out of 850 banks in the United States at the time, 343 closed entirely and 62 failed partially. We hope Washington can learn from the many lessons of history and take appropriate and rapid action to revive credit markets and restore investor faith.

A need for global leadership

We believe that today's U.S. government safety nets and financial safeguards - including the Fed, deposit insurance on bank accounts, unemployment insurance, municipal bond default insurance and social security - are likely to help cushion the effects of the economic downturn that our country appears to face in the coming months. However, the scope of the current financial crisis is global, and this is a new phenomenon. It is one that we think may require coordinated central bank and fiscal policy action from Brussels to Beijing to resolve. It will likely test whether we are becoming one world that can act together for the common good, or one where national trade supremacy, resource hoarding and/or parochial political interests take precedence.

Economic Snapshot
	9-30-2008			3-31-2008
U.S. unemployment rate		6.10	%		5.10	%
Inflation (U.S. Consumer Price Index)		4.90	%		4.00	%
U.S. GDP		- -0.30	%		0.60	%
30-year fixed mortgage rate		5.82	%		5.63	%
Oil price per barrel	$	100.64		$	101.58

Sources: Bloomberg, U.S. Department of Labor

All government statistics shown are subject to periodic revisions.

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.

For many people it is more difficult to buy a home or expand a consumer-focused business than it was just a year ago. As shown in the Economic Snapshot table to the left, the U.S. economy at Sept.30, 2008 is not in as good a shape as it was six months earlier. The unemployment rate is higher. The economy has contracted.

We believe that the investing and economic climate will get better in time, although not right away. With perseverance, initiative and ingenuity, we believe the strengths of our nation's character will surface and prosperity will be restored. In this uncertain environment, we believe a very strong effort to manage risk is paramount. With that approach in mind, 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, 2008.

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 five percent 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 five percent hypothetical example with the five percent 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 he lp 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 Dividend Opportunities Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	888.00		1.38	%	$	6.51
Class B		1,000		883.20		2.37			11.21
Class C		1,000		884.60		2.15			10.18
Class E		1,000		886.00		1.82			8.58
Class I		1,000		889.70		1.00			4.72
Class Y		1,000		888.50		1.26			5.95
Based on 5% Return(2)
Class A	$	1,000	$	1,018.17		1.38	%	$	6.96
Class B		1,000		1,013.17		2.37			11.98
Class C		1,000		1,014.27		2.15			10.88
Class E		1,000		1,015.97		1.82			9.17
Class I		1,000		1,020.07		1.00			5.05
Class Y		1,000		1,018.77		1.26			6.36

Ivy Small Cap Value Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	991.50		1.89	%	$	9.46
Class B		1,000		986.20		2.95			14.70
Class C		1,000		987.20		2.69			13.41
Class E**		1,000		993.80		1.32			6.58
Class I		1,000		995.50		1.18			5.89
Class Y		1,000		993.90		1.42			7.08
Based on 5% Return(2)
Class A	$	1,000	$	1,015.57		1.89	%	$	9.57
Class B		1,000		1,010.27		2.95			14.88
Class C		1,000		1,011.57		2.69			13.58
Class E**		1,000		1,018.47		1.32			6.66
Class I		1,000		1,019.17		1.18			5.96
Class Y		1,000		1,017.97		1.42			7.16

Ivy Value Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	891.90		1.70	%	$	8.04
Class B		1,000		886.40		2.87			13.58
Class C		1,000		886.90		2.71			12.83
Class E**		1,000		893.90		1.22			5.78
Class I		1,000		893.80		1.10			5.21
Class Y		1,000		893.30		1.36			6.44
Based on 5% Return(2)
Class A	$	1,000	$	1,016.57		1.70	%	$	8.57
Class B		1,000		1,010.67		2.87			14.48
Class C		1,000		1,011.47		2.71			13.68
Class E**		1,000		1,018.97		1.22			6.16
Class I		1,000		1,019.57		1.10			5.55
Class Y		1,000		1,018.27		1.36			6.86

Ivy Managed European/Pacific Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	729.90		0.66	%	$	2.85
Class B		1,000		724.90		1.60			6.90
Class C		1,000		725.20		1.44			6.21
Class E**		1,000		730.99		0.50			2.16
Class I		1,000		732.20		0.26			1.13
Class Y		1,000		730.90		0.68			2.94
Based on 5% Return(2)
Class A	$	1,000	$	1,021.77		0.66	%	$	3.34
Class B		1,000		1,017.07		1.60			8.07
Class C		1,000		1,017.87		1.44			7.26
Class E**		1,000		1,022.57		0.50			2.53
Class I		1,000		1,023.77		0.26			1.32
Class Y		1,000		1,021.67		0.68			3.44

Ivy Managed International Opportunities Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	790.30		0.54	%	$	2.42
Class B		1,000		785.90		1.36			6.07
Class C		1,000		785.90		1.34			5.98
Class E**		1,000		791.30		0.44			1.97
Class I		1,000		792.40		0.18			0.81
Class Y		1,000		790.30		0.54			2.42
Based on 5% Return(2)
Class A	$	1,000	$	1,022.37		0.54	%	$	2.73
Class B		1,000		1,018.27		1.36			6.86
Class C		1,000		1,018.37		1.34			6.76
Class E**		1,000		1,022.87		0.44			2.23
Class I		1,000		1,024.17		0.18			0.91
Class Y		1,000		1,022.37		0.54			2.73

Ivy Cundill Global Value Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	892.10		1.76	%	$	8.33
Class B		1,000		887.20		2.63			12.46
Class C		1,000		888.30		2.43			11.52
Class E		1,000		890.20		2.19			10.40
Class I		1,000		894.00		1.26			5.97
Class Y		1,000		894.80		1.20			5.68
Advisor Class**		1,000		894.70		1.12			5.31
Based on 5% Return(2)
Class A	$	1,000	$	1,016.27		1.76	%	$	8.87
Class B		1,000		1,011.87		2.63			13.28
Class C		1,000		1,012.87		2.43			12.28
Class E		1,000		1,014.07		2.19			11.08
Class I		1,000		1,018.77		1.26			6.36
Class Y		1,000		1,019.07		1.20			6.06
Advisor Class**		1,000		1,019.47		1.12			5.65

Ivy European Opportunities Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	740.00		1.70	%	$	7.40
Class B		1,000		736.70		2.59			11.29
Class C		1,000		737.50		2.37			10.34
Class E**		1,000		741.70		1.32			5.75
Class I		1,000		742.00		1.18			5.14
Class Y		1,000		741.00		1.46			6.35
Advisor Class**		1,000		741.90		1.24			5.40
Based on 5% Return(2)
Class A	$	1,000	$	1,016.57		1.70	%	$	8.57
Class B		1,000		1,012.07		2.59			13.08
Class C		1,000		1,013.17		2.37			11.98
Class E**		1,000		1,018.47		1.32			6.66
Class I		1,000		1,019.17		1.18			5.96
Class Y		1,000		1,017.77		1.46			7.36
Advisor Class**		1,000		1,018.87		1.24			6.26

Ivy International Balanced Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	839.40		1.38	%	$	6.35
Class B		1,000		835.80		2.33			10.74
Class C		1,000		835.80		2.09			9.64
Class E		1,000		837.50		1.87			8.64
Class I		1,000		841.20		0.98			4.51
Class Y		1,000		839.30		1.30			5.98
Based on 5% Return(2)
Class A	$	1,000	$	1,018.17		1.38	%	$	6.96
Class B		1,000		1,013.37		2.33			11.78
Class C		1,000		1,014.57		2.09			10.58
Class E		1,000		1,015.67		1.87			9.47
Class I		1,000		1,020.17		0.98			4.95
Class Y		1,000		1,018.57		1.30			6.56

Ivy International Core Equity Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	777.30		1.56	%	$	6.93
Class B		1,000		773.80		2.43			10.82
Class C		1,000		774.80		2.23			9.94
Class E		1,000		775.40		2.11			9.41
Class I		1,000		779.10		1.12			4.98
Class Y		1,000		778.30		1.36			6.05
Based on 5% Return(2)
Class A	$	1,000	$	1,017.27		1.56	%	$	7.87
Class B		1,000		1,012.87		2.43			12.28
Class C		1,000		1,013.87		2.23			11.28
Class E		1,000		1,014.47		2.11			10.68
Class I		1,000		1,019.47		1.12			5.65
Class Y		1,000		1,018.27		1.36			6.86

Ivy International Growth Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	772.50		1.52	%	$	6.74
Class B		1,000		768.10		2.55			11.32
Class C		1,000		768.60		2.47			10.97
Class E**		1,000		773.10		1.34			5.94
Class I		1,000		773.60		1.20			5.32
Class Y		1,000		772.50		1.50			6.65
Based on 5% Return(2)
Class A	$	1,000	$	1,017.47		1.52	%	$	7.67
Class B		1,000		1,012.27		2.55			12.88
Class C		1,000		1,012.67		2.47			12.48
Class E**		1,000		1,018.37		1.34			6.76
Class I		1,000		1,019.07		1.20			6.06
Class Y		1,000		1,017.57		1.50			7.57

Ivy Pacific Opportunities Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	716.10		1.82	%	$	7.81
Class B		1,000		712.70		2.89			12.42
Class C		1,000		713.60		2.57			11.05
Class E**		1,000		717.90		1.42			6.10
Class I		1,000		718.10		1.30			5.58
Class Y		1,000		717.20		1.56			6.70
Advisor Class**		1,000		718.40		1.20			5.16
Based on 5% Return(2)
Class A	$	1,000	$	1,015.97		1.82	%	$	9.17
Class B		1,000		1,010.57		2.89			14.58
Class C		1,000		1,012.17		2.57			12.98
Class E**		1,000		1,017.97		1.42			7.16
Class I		1,000		1,018.57		1.30			6.56
Class Y		1,000		1,017.27		1.56			7.87
Advisor Class**		1,000		1,019.07		1.20			6.06

Ivy Balanced Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	937.80		1.40	%	$	6.78
Class B		1,000		932.80		2.33			11.31
Class C		1,000		934.60		2.11			10.25
Class E**		1,000		939.00		1.16			5.62
Class I		1,000		939.60		1.02			4.95
Class Y		1,000		938.20		1.28			6.20
Based on 5% Return(2)
Class A	$	1,000	$	1,018.07		1.40	%	$	7.06
Class B		1,000		1,013.37		2.33			11.78
Class C		1,000		1,014.47		2.11			10.68
Class E**		1,000		1,019.27		1.16			5.86
Class I		1,000		1,019.97		1.02			5.15
Class Y		1,000		1,018.67		1.28			6.46

Ivy Global Natural Resources Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	698.30		1.32	%	$	5.60
Class B		1,000		695.60		2.09			8.90
Class C		1,000		695.90		2.03			8.65
Class E		1,000		696.50		1.87			7.97
Class I		1,000		699.50		1.00			4.25
Class R		1,000		697.50		1.54			6.54
Class Y		1,000		698.80		1.20			5.10
Advisor Class**		1,000		699.70		0.94			3.99
Based on 5% Return(2)
Class A	$	1,000	$	1,018.47		1.32	%	$	6.66
Class B		1,000		1,014.57		2.09			10.58
Class C		1,000		1,014.87		2.03			10.28
Class E		1,000		1,015.67		1.87			9.47
Class I		1,000		1,020.07		1.00			5.05
Class R		1,000		1,017.37		1.54			7.77
Class Y		1,000		1,019.07		1.20			6.06
Advisor Class**		1,000		1,020.37		0.94			4.75

Ivy Real Estate Securities Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	999.10		1.78	%	$	8.90
Class B		1,000		993.80		2.89			14.46
Class C		1,000		995.30		2.61			13.07
Class E		1,000		996.10		2.39			11.98
Class I		1,000		1,002.80		1.16			5.81
Class R		1,000		1,000.00		1.70			8.50
Class Y		1,000		1,001.50		1.38			6.91
Based on 5% Return(2)
Class A	$	1,000	$	1,016.17		1.78	%	$	8.97
Class B		1,000		1,010.57		2.89			14.58
Class C		1,000		1,011.97		2.61			13.18
Class E		1,000		1,013.07		2.39			12.08
Class I		1,000		1,019.27		1.16			5.86
Class R		1,000		1,016.57		1.70			8.57
Class Y		1,000		1,018.17		1.38			6.96

Ivy Bond Fund Expenses
For the Six Months Ended September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	961.40		1.24	%	$	6.08
Class B		1,000		955.90		2.39			11.74
Class C		1,000		957.20		2.11			10.37
Class E		1,000		959.70		1.58			7.74
Class I		1,000		963.10		0.90			4.42
Class Y		1,000		960.90		1.36			6.67
Based on 5% Return(2)
Class A	$	1,000	$	1,018.87		1.24	%	$	6.26
Class B		1,000		1,013.07		2.39			12.08
Class C		1,000		1,014.47		2.11			10.68
Class E		1,000		1,017.17		1.58			7.97
Class I		1,000		1,020.57		0.90			4.55
Class Y		1,000		1,018.27		1.36			6.86

Ivy Global Bond Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 4-04-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	976.00		1.01	%	$	4.94
Class B		1,000		973.00		1.74			8.48
Class C		1,000		973.00		1.72			8.39
Class I		1,000		978.00		0.79			3.86
Class Y		1,000		977.00		1.01			4.94
Based on 5% Return(2)
Class A	$	1,000	$	1,019.99		1.01	%	$	5.15
Class B		1,000		1,016.33		1.74			8.77
Class C		1,000		1,016.43		1.72			8.67
Class I		1,000		1,021.10		0.79			4.04
Class Y		1,000		1,019.99		1.01			5.15

Ivy Mortgage Securities Fund Expenses
For the Six Months Ended       September 30, 2008	Beginning Account Value 3-31-08		Ending Account Value 9-30-08		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$	1,000	$	958.80		1.28	%	$	6.27
Class B		1,000		954.00		2.25			11.04
Class C		1,000		955.10		2.01			9.87
Class E		1,000		957.10		1.62			7.93
Class I		1,000		961.20		0.80			3.92
Class Y		1,000		960.00		1.02			5.00
Based on 5% Return(2)
Class A	$	1,000	$	1,018.67		1.28	%	$	6.46
Class B		1,000		1,013.77		2.25			11.38
Class C		1,000		1,014.97		2.01			10.18
Class E		1,000		1,016.97		1.62			8.17
Class I		1,000		1,021.07		0.80			4.04
Class Y		1,000		1,019.97		1.02			5.15

*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, 2008, and divided by 365.

**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 last column.

(2)This section uses a hypothetical five percent 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 DIVIDEND OPPORTUNITIES FUND

Portfolio Highlights

On September 30, 2008, Ivy Dividend Opportunities Fund had net assets totaling $221,800
(in thousands) invested in a diversified portfolio of:

83.85%	Domestic Common Stocks
11.35%	Cash and Cash Equivalents
4.80%	Foreign Common Stocks

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:

Energy Stocks	$	18.25
Financials Stocks	$	17.30
Consumer Staples Stocks	$	17.16
Industrials Stocks	$	13.23
Cash and Cash Equivalents	$	11.35
Information Technology Stocks	$	6.68
Health Care Stocks	$	5.75
Material Stocks	$	4.12
Consumer Discretionary Stocks	$	3.51
Miscellaneous Stocks(1)	$	2.65

(1)Includes $0.50 Telecommunication Services Stocks and $2.15 Utilities Stocks.

The Investments of Ivy Dividend Opportunities Fund
September 30, 2008
(In Thousands)                                                                                                                    (Unaudited)
COMMON STOCKS	Shares		Value
Aerospace & Defense - 1.99%
Raytheon Company		83	$	4,417
Asset Management & Custody Banks - 1.09%
AllianceBernstein Holding L.P.		65		2,419
Communications Equipment - 2.43%
Consolidated Communications Holdings, Inc.		140		2,114
Nokia Corporation, Series A, ADR		61		1,147
QUALCOMM Incorporated		49		2,117
				5,378
Computer Hardware - 1.00%
Hewlett-Packard Company		48		2,222
Construction & Engineering - 3.13%
Chicago Bridge & Iron Company N.V., NY Shares		72		1,387
Fluor Corporation		99		5,565
				6,952
Construction & Farm Machinery & Heavy Trucks - 3.51%
Caterpillar Inc.		45		2,667
Deere & Company		103		5,111
				7,778
Consumer Finance - 1.14%
Capital One Financial Corporation		50		2,527
Data Processing & Outsourced Services - 0.55%
Visa Inc., Class A		20		1,227
Department Stores - 0.89%
Nordstrom, Inc.		68		1,960
Distillers & Vintners - 1.58%
Diageo plc, ADR		51		3,495
Diversified Banks - 2.90%
U.S. Bancorp		88		3,173
Wells Fargo & Company		87		3,267
				6,440
Electrical Components & Equipment - 1.03%
Emerson Electric Co.		56		2,282
Fertilizers & Agricultural Chemicals - 2.04%
Monsanto Company		46		4,533
General Merchandise Stores - 0.48%
Target Corporation		22		1,064
Health Care Equipment - 1.23%
Medtronic, Inc.		54		2,726
Hotels, Resorts & Cruise Lines - 0.66%
Starwood Hotels & Resorts Worldwide, Inc.		52		1,467
Household Products - 5.30%
Colgate-Palmolive Company		99		7,426
Procter & Gamble Company (The)		62		4,331
				11,757
Independent Power Producers & Energy Traders - 1.07%
NRG Energy, Inc. (A)		96		2,366
Industrial Gases - 1.26%
Air Products and Chemicals, Inc.		41		2,784
Industrial REITs - 0.54%
ProLogis		29		1,187
Integrated Oil & Gas - 3.79%
BP p.l.c., ADR		26		1,325
Exxon Mobil Corporation		91		7,086
				8,411
Integrated Telecommunication Services - 0.50%
Iowa Telecommunications Services, Inc.		59		1,100
Life & Health Insurance - 1.45%
Aflac Incorporated		55		3,225
Multi-Utilities - 1.08%
Dominion Resources, Inc.		56		2,396
Office REITs - 1.03%
Douglas Emmett, Inc.		100		2,295
Oil & Gas Drilling - 0.78%
Transocean Inc.		16		1,715
Oil & Gas Equipment & Services - 8.11%
Halliburton Company		71		2,298
National Oilwell Varco, Inc. (A)		57		2,883
Schlumberger Limited		86		6,743
Smith International, Inc.		56		3,260
Weatherford International Ltd. (A)		111		2,810
				17,994
Oil & Gas Exploration & Production - 3.21%
Apache Corporation		40		4,207
XTO Energy Inc.		63		2,910
				7,117
Oil & Gas Storage & Transportation - 2.36%
El Paso Pipeline Partners, L.P.		116		1,865
Enbridge Inc.		46		1,756
NuStar GP Holdings, LLC		92		1,619
				5,240
Other Diversified Financial Services - 2.78%
J.P. Morgan Chase & Co.		132		6,169
Packaged Foods & Meats - 1.39%
Wm. Wrigley Jr. Company		39		3,085
Pharmaceuticals - 4.52%
Abbott Laboratories		119		6,852
Merck & Co., Inc.		101		3,186
				10,038
Property & Casualty Insurance - 1.99%
ACE Limited		28		1,526
Allstate Corporation (The)		25		1,151
Travelers Companies, Inc. (The)		38		1,727
				4,404
Railroads - 3.57%
Burlington Northern Santa Fe Corporation		29		2,671
Union Pacific Corporation		74		5,241
				7,912
Restaurants - 1.48%
McDonald's Corporation		53		3,286
Retail REITs - 1.21%
Simon Property Group, Inc.		28		2,692
Semiconductors - 1.36%
Microchip Technology Incorporated		103		3,026
Soft Drinks - 3.71%
Coca-Cola Company (The)		74		3,889
PepsiCo, Inc.		61		4,344
				8,233
Specialized Finance - 3.17%
CME Group Inc.		14		5,578
IntercontinentalExchange, Inc. (A)		18		1,448
				7,026
Steel - 0.82%
Nucor Corporation		46		1,815
Systems Software - 1.34%
Microsoft Corporation		112		2,975
Tobacco - 5.18%
Lorillard, Inc.		78		5,575
Philip Morris International Inc.		123		5,911
				11,486
TOTAL COMMON STOCKS - 88.65%			$	196,621
(Cost: $195,970)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 8.72%
Automatic Data Processing Inc.,
2.000%, 10-1-08	$	2,357		2,357
Avon Capital Corp. (Avon Products, Inc.):
2.200%, 10-3-08		4,000		4,000
2.050%, 10-8-08		3,000		2,999
McCormick & Co. Inc.,
3.000%, 10-1-08		5,000		5,000
Pfizer Inc.,
1.800%, 10-8-08		5,000		4,998
				19,354
United States Government Obligations - 6.77%
United States Treasury Bills:
0.100%, 10-9-08		4,000		4,000
0.095%, 10-9-08		5,000		5,000
0.300%, 10-23-08		3,000		2,999
0.320%, 10-30-08		3,000		2,999
				14,998
TOTAL SHORT-TERM SECURITIES - 15.49%			$	34,352
(Cost: $34,352)
TOTAL INVESTMENT SECURITIES - 104.14%			$	230,973
(Cost: $230,322)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (4.14%)				(9,173	)
NET ASSETS - 100.00%			$	221,800

Notes to Schedule of Investments

(A)No dividends were paid during the preceding 12 months.

The following acronym is used throughout this portfolio: ADR = American Depositary Receipts See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY DIVIDEND OPPORTUNITIES FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (cost - $230,322)	$	230,973
Receivables:
Fund shares sold		956
Dividends and interest		500
Prepaid and other assets		49
Total assets		232,478
LIABILITIES
Payable for investment securities purchased		9,606
Payable to Fund shareholders		607
Due to custodian		155
Accrued management fee		132
Accrued shareholder servicing		70
Accrued distribution and service fees		70
Accrued accounting services fee		8
Other		30
Total liabilities		10,678
Total net assets	$	221,800
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	225,165
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		325
Accumulated net realized loss on investment transactions		(4,341	)
Net unrealized appreciation in value of investments		651
Net assets applicable to outstanding units of capital	$	221,800
Net asset value per share (net assets divided by shares outstanding):
Class A	$14.22
Class B	$14.07
Class C	$14.11
Class E	$14.18
Class I	$14.24
Class Y	$14.23
Capital shares outstanding:
Class A		11,150
Class B		706
Class C		2,005
Class E		146
Class I		10
Class Y		1,604

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY DIVIDEND OPPORTUNITIES FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                                (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $17)	$	2,187
Interest and amortization		287
Total income		2,474
Expenses:
Investment management fee		803
Distribution and service fees:
Class A		207
Class B		56
Class C		138
Class E		3
Class Y		28
Shareholder servicing:
Class A		217
Class B		27
Class C		39
Class E		11
Class I		––	*
Class Y		18
Accounting services fee		47
Audit fees		12
Custodian fees		6
Legal fees		1
Other		85
Total		1,698
Less expenses in excess of limit		(3	)
Total expenses		1,695
Net investment income		779
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS
Realized net loss on investments		(1,345	)
Unrealized depreciation in value of investments during the period		(28,764	)
Net loss on investments		(30,109	)
Net decrease in net assets resulting from operations	$	(29,330	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

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

	For the six months ended September 30,				For the fiscal year ended March 31,
	2008				2008
INCREASE IN NET ASSETS
Operations:
Net investment income		$	779		$	1,086
Realized net loss on investments			(1,345	)		(2,385	)
Unrealized appreciation (depreciation)			(28,764	)		4,858
Net increase (decrease) in net assets                        resulting from operations			(29,330	)		3,559
Distributions to shareholders from:(1)
Net investment income:
Class A			(376	)		(1,106	)
Class B			(––	)		(14	)
Class C			(––	)		(53	)
Class E			(1	)		(3	)
Class I			(1	)		(2	)
Class Y			(67	)		(66	)
Realized gains on investment transactions:
Class A			(––	)		(1,516	)
Class B			(––	)		(126	)
Class C			(––	)		(259	)
Class E			(––	)		(19	)
Class I			(––	)		(1	)
Class Y			(—	)		(95	)
			(445	)		(3,260	)
Capital share transactions			54,413			57,974
Total increase			24,638			58,273
NET ASSETS
Beginning of period			197,162			138,889
End of period		$	221,800		$	197,162
Accumulated undistributed net                  investment income (loss)		$	325		$	(9	)

(1)See "Financial Highlights" on pages 24 - 29.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND OPPORTUNITIES FUND⁽¹⁾
      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(2) to
	9-30-08				2008			2007			2006			2005		3-31-04					12-31-03
Net asset value,      beginning of period		$	16.05		$	15.70		$	14.41		$	12.13		$	11.07		$	11.03			$	10.00
Income (loss) from      investment      operations:
Net investment           income			0.07	(3)		0.13	(3)		0.17	(3)		0.12	(3)		0.09			0.01				0.04
Net realized and           unrealized gain           (loss) on           investments			(1.86	) (3)		0.54	(3)		1.49	(3)		2.30	(3)		1.10			0.04				1.03
Total from investment      operations			(1.79	)		0.67			1.66			2.42			1.19			0.05				1.07
Less distributions from:
Net investment           income			(0.04	)		(0.14	)		(0.18	)		(0.11	)		(0.09	)		(0.01	)			(0.04	)
Capital gains			(0.00	)		(0.18	)		(0.19	)		(0.03	)		(0.04	)		(0.00	)			(0.00	)
Total distributions			(0.04	)		(0.32	)		(0.37	)		(0.14	)		(0.13	)		(0.01	)			(0.04	)
Net asset value,      end of period		$	14.22		$	16.05		$	15.70		$	14.41		$	12.13		$	11.07			$	11.03
Total return(4)		- -11.20		%		4.10	%		11.57	%		19.99	%		10.78	%		0.41	%			10.70	%
Net assets,      end of period      (in millions)		$159			$148			$107			$61			$32			$17				$16
Ratio of expenses to      average net assets      including expense      waiver			1.38	%(5)		1.37	%		1.38	%		1.45	%		1.59	%		2.00	%(5)			1.11	%(5)
Ratio of net investment      income to average      net assets including      expense waiver			0.82	%(5)		0.77	%		1.16	%		0.92	%		0.94	%		0.20	%(5)			1.34	%(5)
Ratio of expenses to      average net assets      excluding expense      waiver			1.38	%(5)(6)		1.37	%(6)		1.38	%(6)		1.45	%(6)		1.59	%(6)		2.40	%(5)			1.81	%(5)
Ratio of net investment      income (loss) to      average net assets      excluding expense      waiver			0.82	%(5)(6)		0.77	%(6)		1.16	%(6)		0.92	%(6)		0.94	%(6)		- -0.20	%(5)			0.64	%(5)
Portfolio turnover rate			10	%		30	%		24	%		15	%		32	%		12	%			16	%

(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

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

(5)Annualized.

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

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND OPPORTUNITIES FUND⁽¹⁾
      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(2) to
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	15.93		$	15.63		$	14.34		$	12.09		$	11.05		$	11.03		$	10.00
Income (loss)      from investment      operations:
Net investment           income (loss)			(0.01	)		(0.03	)		0.05			0.01			0.02			(0.02	)		0.01
Net realized and           unrealized gain           (loss) on           investments			(1.85	)		0.53			1.47			2.28			1.06			0.04			1.03
Total from investment      operations			(1.86	)		0.50			1.52			2.29			1.08			0.02			1.04
Less distributions from:
Net investment           income			(0.00	)		(0.02	)		(0.04	)		(0.01	)		(0.00	)		(0.00	)		(0.01	)
Capital gains			(0.00	)		(0.18	)		(0.19	)		(0.03	)		(0.04	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.20	)		(0.23	)		(0.04	)		(0.04	)		(0.00	)		(0.01	)
Net asset value,      end of period		$	14.07		$	15.93		$	15.63		$	14.34		$	12.09		$	11.05		$	11.03
Total return		- -11.68		%		3.09	%		10.63	%		18.94	%		9.76	%		0.18	%		10.36	%
Net assets,      end of period      (in millions)		$10			$11			$10			$7			$6			$2			$2
Ratio of expenses to      average net assets      including expense      waiver			2.37	%(3)		2.34	%		2.30	%		2.32	%		2.44	%		2.99	%(3)		2.03	%(3)
Ratio of net investment      income (loss) to      average net assets      including expense      waiver			- -0.17	%(3)		- -0.16	%		0.29	%		0.03	%		0.11	%		- -0.81	%(3)		0.36	%(3)
Ratio of expenses to      average net assets      excluding expense      waiver			2.37	%(3)(4)		2.34	%(4)		2.30	%(4)		2.32	%(4)		2.44	%(4)		3.39	%(3)		2.73	%(3)
Ratio of net investment      income (loss) to      average net assets      excluding expense      waiver			- -0.17	%(3)(4)		- -0.16	%(4)		0.29	%(4)		0.03	%(4)		0.11	%(4)		- -1.21	%(3)		- -0.34	%(3)
Portfolio turnover rate			10	%		30	%		24	%		15	%		32	%		12	%		16	%

(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.

(2)Commencement of operations of the class.

(3)Annualized.

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

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND OPPORTUNITIES FUND⁽¹⁾
      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(2) to
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	15.95		$	15.63		$	14.34		$	12.09		$	11.05		$	11.03		$	10.00
Income (loss)      from investment      operations:
Net investment           income (loss)			0.00	(3)		0.00			0.07			0.01			0.01			(0.02	)		0.01
Net realized and           unrealized gain           (loss) on           investments			(1.84	)(3)		0.54			1.47			2.28			1.07			0.04			1.03
Total from investment      operations			(1.84	)		0.54			1.54			2.29			1.08			0.02			1.04
Less distributions from:
Net investment           income			(0.00	)		(0.04	)		(0.06	)		(0.01	)		(0.00	)		(0.00	)		(0.01	)
Capital gains			(0.00	)		(0.18	)		(0.19	)		(0.03	)		(0.04	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.22	)		(0.25	)		(0.04	)		(0.04	)		(0.00	)		(0.01	)
Net asset value,      end of period		$	14.11		$	15.95		$	15.63		$	14.34		$	12.09		$	11.05		$	11.03
Total return		- -11.54		%		3.32	%		10.74	%		18.95	%		9.76	%		0.18	%		10.38	%
Net assets,      end of period      (in millions)		$28			$24			$19			$14			$10			$6			$5
Ratio of expenses to      average net assets      including expense      waiver			2.15	%(4)		2.15	%		2.17	%		2.27	%		2.42	%		2.88	%(4)		1.98	%(4)
Ratio of net investment      income (loss) to      average net assets      including expense      waiver			0.06	%(4)		0.00	%		0.42	%		0.08	%		0.10	%		- -0.68	%(4)		0.45	%(4)
Ratio of expenses to      average net assets      excluding expense      waiver			2.15	%(4)(5)		2.15	%(5)		2.17	%(5)		2.27	%(5)		2.42	%(5)		3.28	%(4)		2.68	%(4)
Ratio of net investment      income (loss) to      average net assets      excluding expense      waiver			0.06	%(4)(5)		0.00	%(5)		0.42	%(5)		0.08	%(5)		0.10	%(5)		- -1.08	%(4)		- -0.25	%(4)
Portfolio turnover rate			10	%		30	%		24	%		15	%		32	%		12	%		16	%

(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.

(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.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	16.01		$	15.76
Income (loss) from investment operations:
Net investment income (loss)			0.03	(3)		(0.01	)(3)
Net realized and unrealized gain (loss)             on investments			(1.85	)(3)		0.51	(3)
Total from investment operations			(1.82	)		0.50
Less distributions from:
Net investment income			(0.01	)		(0.07	)
Capital gains			(0.00	)		(0.18	)
Total distributions			(0.01	)		(0.25	)
Net asset value, end of period		$	14.18		$	16.01
Total return(4)		- -11.40		%		3.01	%
Net assets, end of period (in millions)		$2			$2
Ratio of expenses to average net assets       including expense waiver			1.82	%(5)		2.17	%(5)
Ratio of net investment income (loss) to average       net assets including expense waiver			0.39	%(5)		- -0.18	%(5)
Ratio of expenses to average net assets       excluding expense waiver			2.10	%(5)		2.17	%(5)(6)
Ratio of net investment income (loss) to average       net assets excluding expense waiver			0.11	%(5)		- -0.18	%(5)(6)
Portfolio turnover rate			10	%		30	%(7)

(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

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

(5)Annualized.

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

(7)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	16.07		$	15.76
Income (loss) from investment operations:
Net investment income			0.08	(3)		0.20
Net realized and unrealized gain (loss)             on investments			(1.85	)(3)		0.47
Total from investment operations			(1.77	)		0.67
Less distributions from:
Net investment income			(0.06	)		(0.18	)
Capital gains			(0.00	)		(0.18	)
Total distributions			(0.06	)		(0.36	)
Net asset value, end of period		$	14.24		$	16.07
Total return		- -11.03		%		4.08	%
Net assets, end of period (in thousands)		$141			$104
Ratio of expenses to average net assets			1.00	%(4)		1.00	%(4)
Ratio of net investment income to       average net assets			1.16	%(4)		1.17	%(4)
Portfolio turnover rate			10	%		30	%(5)

(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

(4)Annualized.

(5)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY DIVIDEND OPPORTUNITIES FUND⁽¹⁾
      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(2) to
	9-30-08				2008			2007			2006			2005		3-31-04					12-31-03
Net asset value,      beginning of period		$	16.06		$	15.70		$	14.41		$	12.13		$	11.07		$	11.03			$	10.00
Income (loss)      from investment      operations:
Net investment           income			0.06	(3)		0.14	(3)		0.12	(3)		0.15	(3)		0.11			0.01				0.05
Net realized and           unrealized gain           (loss) on           investments			(1.85	)(3)		0.55	(3)		1.55	(3)		2.29	(3)		1.10			0.04				1.03
Total from investment      operations			(1.79	)		0.69			1.67			2.44			1.21			0.05				1.08
Less distributions from:
Net investment           income			(0.04	)		(0.15	)		(0.19	)		(0.13	)		(0.11	)		(0.01	)			(0.05	)
Capital gains			(0.00	)		(0.18	)		(0.19	)		(0.03	)		(0.04	)		(0.00	)			(0.00	)
Total distributions			(0.04	)		(0.33	)		(0.38	)		(0.16	)		(0.15	)		(0.01	)			(0.05	)
Net asset value,      end of period		$	14.23		$	16.06		$	15.70		$	14.41		$	12.13		$	11.07			$	11.03
Total return		- -11.15		%		4.23	%		11.65	%		20.14	%		10.94	%		0.42	%			10.78	%
Net assets,      end of period      (in millions)		$23			$12			$3			$1			$1			$1			$1
Ratio of expenses to      average net assets      including expense      waiver			1.26	%(4)		1.26	%		1.29	%		1.34	%		1.44	%		1.91	%(4)			1.25	%(4)
Ratio of net investment      income to average      net assets including      expense waiver			0.83	%(4)		0.78	%		0.92	%		1.03	%		1.09	%		0.28	%(4)			1.08	%(4)
Ratio of expenses to      average net assets      excluding expense      waiver			1.26	%(4)(5)		1.26	%(5)		1.29	%(5)		1.34	%(5)		1.44	%(5)		2.31	%(4)			1.95	%(4)
Ratio of net investment      income (loss) to      average net assets      excluding expense      waiver			0.83	%(4)(5)		0.78	%(5)		0.92	%(5)		1.03	%(5)		1.09	%(5)		- -0.12	%(4)			0.38	%(4)
Portfolio turnover rate			10	%		30	%		24	%		15	%		32	%		12	%			16	%

(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.

(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.

See Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY SMALL CAP VALUE FUND

Portfolio Highlights

On September 30, 2008, Ivy Small Cap Value Fund had net assets totaling $135,493
(in thousands) invested in a diversified portfolio of:

82.34%	Domestic Common Stocks
13.21%	Cash and Cash Equivalents
4.45%	Foreign Common Stocks

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:

Financials Stocks	$	23.23
Industrials Stocks	$	16.14
Consumer Discretionary Stocks	$	14.65
Cash and Cash Equivalents	$	13.21
Materials Stocks	$	9.53
Information Technology Stocks	$	7.34
Consumer Staples Stocks	$	6.00
Utilities Stocks	$	4.92
Health Care Stocks	$	3.09
Telecommunication Services Stocks	$	1.89

The Investments of Ivy Small Cap Value Fund
September 30, 2008
(In Thousands)                                                                                                                      (Unaudited)
COMMON STOCKS	Shares		Value
Aerospace & Defense - 2.93%
Orbital Sciences Corporation (A)		103	$	2,462
Teledyne Technologies Incorporated (A)		26		1,503
				3,965
Airlines - 0.94%
Continental Airlines, Inc., Class B (A)		20		337
Northwest Airlines Corporation (A)		104		941
				1,278
Alternative Carriers - 1.44%
tw telecom inc. (A)		188		1,952
Apparel Retail - 0.97%
Finish Line, Inc. (The), Class A (A)		131		1,313
Apparel, Accessories & Luxury Goods - 1.44%
Warnaco Group, Inc. (The) (A)		43		1,949
Application Software - 1.23%
Lawson Software, Inc. (A)		105		735
TIBCO Software Inc. (A)		128		936
				1,671
Asset Management & Custody Banks - 2.05%
Affiliated Managers Group, Inc. (A)		24		1,997
Pzena Investment Management, Inc., Class A		82		773
				2,770
Auto Parts & Equipment - 2.10%
LKQ Corporation (A)		168		2,848
Casinos & Gaming - 2.15%
Pinnacle Entertainment, Inc. (A)		151		1,143
WMS Industries Inc. (A)		58		1,776
				2,919
Communications Equipment - 0.70%
Polycom, Inc. (A)		41		947
Construction Materials - 0.72%
Texas Industries, Inc.		24		981
Diversified Chemicals - 1.08%
Solutia Inc. (A)		105		1,463
Diversified Metals & Mining - 0.37%
General Moly, Inc. (A)		116		505
Education Services - 2.12%
Corinthian Colleges, Inc. (A)		85		1,276
ITT Educational Services, Inc. (A)		20		1,594
				2,870
Electric Utilities - 3.44%
Cleco Corporation		61		1,532
ITC Holdings Corp.		28		1,460
UIL Holdings Corporation		49		1,672
				4,664
Environmental & Facilities Services - 2.29%
Casella Waste Systems, Inc., Class A (A)		115		1,351
Waste Connections, Inc. (A)		51		1,751
				3,102
Fertilizers & Agricultural Chemicals - 0.59%
Terra Industries Inc.		27		803
Food Retail - 3.82%
Casey's General Stores, Inc.		57		1,719
Ruddick Corporation		107		3,458
				5,177
Gas Utilities - 1.48%
Southwest Gas Corporation		66		2,005
Gold - 1.33%
Randgold Resources Limited, ADR		34		1,400
Seabridge Gold Inc. (A)		24		399
				1,799
Health Care Distributors - 1.98%
Kindred Healthcare, Inc. (A)		97		2,684
Health Care Facilities - 1.11%
AmSurg Corp. (A)		59		1,498
Homebuilding - 2.44%
Pulte Homes, Inc.		119		1,655
Ryland Group, Inc. (The)		62		1,650
				3,305
Human Resource & Employment Services - 3.02%
Resources Connection, Inc. (A)		64		1,453
Watson Wyatt & Company Holdings, Inc., Class A		53		2,631
				4,084
Hypermarkets & Super Centers - 2.18%
BJ's Wholesale Club, Inc. (A)		76		2,950
Industrial Machinery - 0.86%
Actuant Corporation, Class A		46		1,168
Integrated Telecommunication Services - 0.45%
SureWest Communications		59		614
Internet Software & Services - 0.59%
SkillSoft Public Limited Company, ADR (A)		77		805
Investment Banking & Brokerage - 2.82%
KBW, Inc. (A)		66		2,174
Piper Jaffray Companies (A)		38		1,641
				3,815
IT Consulting & Other Services - 0.88%
Forrester Research, Inc. (A)		41		1,191
Leisure Products - 1.13%
LeapFrog Enterprises, Inc. (A)		145		1,533
Metal & Glass Containers - 3.78%
Pactiv Corporation (A)		98		2,421
Silgan Holdings Inc.		53		2,698
				5,119
Office REITs - 1.26%
Digital Realty Trust, Inc.		36		1,701
Regional Banks - 10.57%
Bank of the Ozarks, Inc.		22		613
First Financial Bankshares, Inc.		43		2,301
First Horizon National Corporation		61		575
First Midwest Bancorp, Inc.		71		1,761
Home BancShares, Inc. (A)		24		644
Sierra Bancorp		34		721
Sterling Bancshares, Inc.		153		1,634
SVB Financial Group (A)		25		1,445
Texas Capital Bancshares, Inc. (A)		154		3,141
United Bankshares, Inc.		43		1,487
				14,322
Reinsurance - 2.53%
IPC Holdings, Ltd.		74		2,297
Platinum Underwriters Holdings, Ltd.		32		1,135
				3,432
Research & Consulting Services - 1.27%
Duff & Phelps Corporation, Class A (A)		82		1,724
Residential REITs - 1.45%
American Campus Communities, Inc.		58		1,965
Restaurants - 2.30%
CBRL Group, Inc.		56		1,462
Jack in the Box Inc. (A)		78		1,650
				3,112
Security & Alarm Services - 3.41%
Brink's Company (The)		51		3,100
GEO Group, Inc. (The) (A)		75		1,522
				4,622
Semiconductors - 1.97%
Atmel Corporation (A)		343		1,164
PMC-Sierra, Inc. (A)		202		1,503
				2,667
Specialized REITs - 0.74%
Entertainment Properties Trust		18		1,007
Specialty Chemicals - 1.66%
Sensient Technologies Corporation		80		2,248
Systems Software - 1.97%
Sybase, Inc. (A)		87		2,667
Thrifts & Mortgage Finance - 1.81%
First Niagara Financial Group, Inc.		156		2,457
Trucking - 1.42%
Marten Transport, Ltd. (A)		42		816
Werner Enterprises, Inc.		51		1,112
				1,928
TOTAL COMMON STOCKS - 86.79%			$	117,599
(Cost: $115,510)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Baxter International Inc.,
2.350%, 10-10-08	$	2,025		2,024
Caterpillar Inc.,
1.850%, 10-27-08		2,173		2,170
Danaher Corporation,
1.800%, 10-6-08		3,000		2,999
Pfizer Inc.,
1.800%, 10-8-08		5,000		4,999
Procter & Gamble International Funding S.C.A.       (Procter & Gamble Company (The)),
2.100%, 10-7-08		2,000		1,999
Wisconsin Electric Power Co.,
4.000%, 10-1-08		4,602		4,602
TOTAL SHORT-TERM SECURITIES - 13.87%			$	18,793
(Cost: $18,793)
TOTAL INVESTMENT SECURITIES - 100.66%			$	136,392
(Cost: $134,303)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.66%)				(899)
NET ASSETS - 100.00%			$	135,493

Notes to Schedule of Investments

(A)No dividends were paid during the preceding 12 months.

The following acronym is used throughout this portfolio:

ADR = American Depositary Receipts

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY SMALL CAP VALUE FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $134,303)	$	136,392
Receivables:
Investment securities sold		1,416
Fund shares sold		407
Dividends and interest		116
Prepaid and other assets		31
Total assets		138,362
LIABILITIES
Payable for investment securities purchased		2,284
Payable to Fund shareholders		308
Accrued management fee		98
Accrued shareholder servicing		81
Accrued distribution and service fees		27
Due to custodian		21
Accrued accounting services fee		6
Other		44
Total liabilities		2,869
Total net assets	$	135,493
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	149,649
Accumulated undistributed income (loss):
Accumulated net investment loss		(513	)
Accumulated net realized loss on investment transactions		(15,732	)
Net unrealized appreciation in value of investments		2,089
Net assets applicable to outstanding units of capital	$	135,493
Net asset value per share (net assets divided by shares outstanding):
Class A	$12.85
Class B	$12.17
Class C	$12.35
Class E	$12.90
Class I	$13.14
Class Y	$13.05
Capital shares outstanding:
Class A		8,587
Class B		423
Class C		615
Class E		7
Class I		43
Class Y		902

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY SMALL CAP VALUE FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                                (Unaudited)

INVESTMENT LOSS
Income:
Dividends	$	665
Interest and amortization		169
Total income		834
Expenses:
Investment management fee		585
Shareholder servicing:
Class A		318
Class B		23
Class C		23
Class E		––	*
Class I		1
Class Y		10
Distribution and service fees:
Class A		139
Class B		27
Class C		38
Class E		––	*
Class Y		16
Accounting services fee		34
Audit fees		18
Legal fees		7
Custodian fees		5
Other		86
Total expenses		1,330
Net investment loss		(496	)
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized net loss on investments		(3,803	)
Unrealized appreciation in value of investments during the period		2,769
Net loss on investments		(1,034	)
Net decrease in net assets resulting from operations	$	(1,530	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY SMALL CAP VALUE FUND
      (In Thousands)                                                                                                                (Unaudited)
     

	For the six months ended September 30,				For the fiscal year ended March 31,
	2008				2008
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss		$	(496	)	$	(1,085	)
Realized net loss on investments			(3,803	)		(9,224	)
Unrealized appreciation (depreciation)			2,769			(14,609	)
Net decrease in net assets resulting from operations			(1,530	)		(24,918	)
Distributions to shareholders from:(1)
Net investment income:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		(––	)
Class I			(––	)		(––	)
Class Y			(––	)		(––	)
Realized gains on investment transactions:
Class A			(––	)		(6,914	)
Class B			(––	)		(343	)
Class C			(––	)		(513	)
Class E			(––	)		(6	)
Class I			(––	)		(31	)
Class Y			(––	)		(939	)
			(––	)		(8,746	)
Capital share transactions			5,108			2,515
Total increase (decrease)			3,578			(31,149	)
NET ASSETS
Beginning of period			131,915			163,064
End of period		$	135,493		$	131,915
Accumulated net investment loss		$	(513	)	$	(17	)

(1)See "Financial Highlights" on pages 39 - 44.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				7-31-03
Net asset value,      beginning of period		$	12.96		$	16.22		$	16.24		$	16.88		$	16.68		$	13.02			$	12.25
Income (loss) from      investment operations:
Net investment loss			(0.05	)		(0.10	)		(0.03	)		(0.11	)		(0.13	)		(0.08	)			(0.09	)
Net realized and           unrealized gain           (loss) on           investments			(0.06	)		(2.28	)		1.35			2.62			1.52			3.76				1.74
Total from investment      operations			(0.11	)		(2.38	)		1.32			2.51			1.39			3.68				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	)		(0.88	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)			(0.88	)
Total distributions			(0.00	)		(0.88	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)			(0.88	)
Net asset value,      end of period		$	12.85		$	12.96		$	16.22		$	16.24		$	16.88		$	16.68			$	13.02
Total return(1)			- -0.85	%	- -15.19		%		8.26	%		16.44	%		8.23	%		28.29	%			14.91	%
Net assets, end of period      (in millions)		$110			$104			$121			$86			$66			$65				$59
Ratio of expenses to      average net assets			1.89	%(2)		1.76	%		1.74	%		1.80	%		1.76	%		1.65	%(2)(3)			1.53	%
Ratio of net investment      loss to average      net assets			- -0.68	%(2)		- -0.63	%		- -0.24	%		- -0.76	%		- -0.79	%		- -0.76	%(2)(3)			- -0.82	%
Portfolio turnover rate			46	%		118	%		123	%		157	%		124	%		27	%			54	%

*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 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.

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	12.34		$	15.48		$	15.72		$	16.59		$	16.61			$	15.27
Income (loss) from      investment operations:
Net investment loss			(0.14	)		(0.35	)		(0.14	)		(0.25	)		(0.23	)			(0.05	)
Net realized and unrealized gain           (loss) on investments			(0.03	)		(2.08	)		1.24			2.53			1.40				1.41
Total from investment operations			(0.17	)		(2.43	)		1.10			2.28			1.17				1.36
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)
Capital gains			(0.00	)		(0.71	)		(1.34	)		(3.15	)		(1.19	)			(0.02	)
Total distributions			(0.00	)		(0.71	)		(1.34	)		(3.15	)		(1.19	)			(0.02	)
Net asset value, end of period		$	12.17		$	12.34		$	15.48		$	15.72		$	16.59			$	16.61
Total return		- -1.38		%	- -16.14		%		7.11	%		15.28	%		6.92	%			8.93	%
Net assets, end of period      (in millions)		$5			$5			$9			$7			$5				$1
Ratio of expenses to average      net assets			2.95	%(2)		2.83	%		2.82	%		2.84	%		3.02	%			3.79	%(2)
Ratio of net investment loss      to average net assets			- -1.73	%(2)		- -1.69	%		- -1.33	%		- -1.80	%		- -1.88	%			- -2.93	%(2)
Portfolio turnover rate			46	%		118	%		123	%		157	%		124	%			27	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	12.51		$	15.69		$	15.87		$	16.67		$	16.63		$	15.27
Income (loss) from investment      operations:
Net investment loss			(0.10	)		(0.28	)		(0.12	)		(0.21	)		(0.19	)		(0.05	)
Net realized and unrealized gain           (loss) on investments			(0.06	)		(2.14	)		1.28			2.56			1.42			1.43
Total from investment operations			(0.16	)		(2.42	)		1.16			2.35			1.23			1.38
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.76	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)
Total distributions			(0.00	)		(0.76	)		(1.34	)		(3.15	)		(1.19	)		(0.02	)
Net asset value, end of period		$	12.35		$	12.51		$	15.69		$	15.87		$	16.67		$	16.63
Total return			- -1.28	%	- -15.91		%		7.43	%		15.64	%		7.28	%		9.06	%
Net assets, end of period      (in millions)		$8			$8			$12			$10			$8			$2
Ratio of expenses to average       net assets			2.69	%(2)		2.54	%		2.52	%		2.54	%		2.65	%		2.83	%(2)
Ratio of net investment loss to       average net assets			- -1.47	%(2)		- -1.40	%		- -1.04	%		- -1.50	%		- -1.53	%		- -2.00	%(2)
Portfolio turnover rate			46	%		118	%		123	%		157	%		124	%		27	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY SMALL CAP VALUE FUND
      Class E Shares⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                 (Unaudited)

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	12.98			$	16.23
Loss from investment operations:
Net investment loss			(0.01	)			(0.02	)
Net realized and unrealized loss on investments			(0.07	)			(2.30	)
Total from investment operations			(0.08	)			(2.32	)
Less distributions from:
Net investment income			(0.00	)			(0.00	)
Capital gains			(0.00	)			(0.93	)
Total distributions			(0.00	)			(0.93	)
Net asset value, end of period		$	12.90			$	12.98
Total return(3)			- -0.62	%		- -14.82		%
Net assets, end of period (in thousands)		$85				$85
Ratio of expenses to average net assets			1.32	%(4)			1.26	%(4)
Ratio of net investment loss to average net assets			- -0.10	%(4)			- -0.14	%(4)
Portfolio turnover rate			46	%			118	%(5)

(1)Class is closed.

(2)Commencement of operations of the class.

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

(4)Annualized.

(5)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY SMALL CAP VALUE FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	13.20			$	16.43
Loss from investment operations:
Net investment loss			(0.02	)			(0.01	)
Net realized and unrealized loss on investments			(0.04	)			(2.26	)
Total from investment operations			(0.06	)			(2.27	)
Less distributions from:
Net investment income			(0.00	)			(0.00	)
Capital gains			(0.00	)			(0.96	)
Total distributions			(0.00	)			(0.96	)
Net asset value, end of period		$	13.14			$	13.20
Total return			- -0.45	%		- -14.39		%
Net assets, end of period (in thousands)		$562				$463
Ratio of expenses to average net assets			1.18	%(2)			1.19	%(2)
Ratio of net investment loss to average net assets			- -0.02	%(2)			- -0.07	%(2)
Portfolio turnover rate			46	%			118	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the 12 months ended March 31, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	13.13		$	16.42		$	16.36		$	16.92		$	16.68			$	15.27
Income (loss) from investment      operations:
Net investment           income (loss)			(0.01	)(2)		(0.04	)(2)		0.03			(0.06	)		(0.10	)			(0.04	)
Net realized and           unrealized gain (loss)           on investments			(0.07	)(2)		(2.32	)(2)		1.37			2.65			1.53				1.47
Total from investment      operations			(0.08	)		(2.36	)		1.40			2.59			1.43				1.43
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)
Capital gains			(0.00	)		(0.93	)		(1.34	)		(3.15	)		(1.19	)			(0.02	)
Total distributions			(0.00	)		(0.93	)		(1.34	)		(3.15	)		(1.19	)			(0.02	)
Net asset value, end of period		$	13.05		$	13.13		$	16.42		$	16.36		$	16.92			$	16.68
Total return			- -0.61	%	- -14.89		%		8.70	%		16.88	%		8.48	%			9.38	%
Net assets, end of period       (in millions)		$12			$14			$21			$24			$25				$25
Ratio of expenses to      average net assets			1.42	%(3)		1.39	%		1.39	%		1.41	%		1.53	%			1.60	%(3)
Ratio of net investment      income (loss) to average      net assets			- -0.20	%(3)		- -0.25	%		0.08	%		- -0.37	%		- -0.56	%			- -0.82	%(3)
Portfolio turnover rate			46	%		118	%		123	%		157	%		124	%			27	%(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 Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY VALUE FUND

Portfolio Highlights

On September 30, 2008, Ivy Value Fund had net assets totaling $54,388 (in thousands) invested in a diversified portfolio of:

92.97%	Domestic Common Stocks
3.60%	Cash and Cash Equivalents
3.43%	Foreign Common Stocks

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:

Financials Stocks	$	22.04
Energy Stocks	$	18.77
Consumer Staples Stocks	$	12.29
Industrials Stocks	$	11.29
Health Care Stocks	$	10.34
Information Technology Stocks	$	8.92
Telecommunication Services Stocks	$	3.92
Cash and Cash Equivalents	$	3.60
Materials Stocks	$	3.37
Utilities Stocks	$	2.84
Consumer Discretionary Stocks	$	2.62

The Investments of Ivy Value Fund
September 30, 2008
(In Thousands)                                                                                                                    (Unaudited)
COMMON STOCKS	Shares		Value
Aerospace & Defense - 3.94%
Lockheed Martin Corporation		10	$	1,108
Raytheon Company		19		1,033
				2,141
Airlines - 0.18%
UAL Corporation		11		100
Asset Management & Custody Banks - 0.48%
Blackstone Group L.P. (The)		17		262
Brewers - 1.41%
Molson Coors Brewing Company, Class B		16		767
Communications Equipment - 1.79%
Nokia Corporation, Series A, ADR		52		970
Computer Hardware - 5.85%
Hewlett-Packard Company		45		2,072
International Business Machines Corporation		10		1,111
				3,183
Construction & Engineering - 0.47%
Chicago Bridge & Iron Company N.V., NY Shares		13		258
Consumer Finance - 3.53%
Capital One Financial Corporation (A)		33		1,663
Discover Financial Services		19		256
				1,919
Department Stores - 1.67%
Macy's Inc.		51		910
Diversified Chemicals - 0.75%
Solutia Inc. (B)		29		406
Diversified Metals & Mining - 1.25%
Freeport-McMoRan Copper & Gold Inc., Class B		12		682
Environmental & Facilities Services - 1.44%
Waste Management, Inc.		25		781
Health Care Distributors - 7.74%
AmerisourceBergen Corporation		42		1,563
McKesson Corporation		49		2,647
				4,210
Home Improvement Retail - 0.63%
Home Depot, Inc. (The)		13		342
Independent Power Producers & Energy Traders - 2.84%
Mirant Corporation (B)		35		631
NRG Energy, Inc. (B)		37		913
				1,544
Industrial Machinery - 2.29%
Illinois Tool Works Inc.		28		1,248
Integrated Oil & Gas - 11.52%
Chevron Corporation		33		2,705
Exxon Mobil Corporation		18		1,398
Marathon Oil Corporation		28		1,105
Occidental Petroleum Corporation		15		1,057
				6,265
Integrated Telecommunication Services - 3.92%
Verizon Communications Inc.		67		2,134
Managed Health Care - 1.98%
UnitedHealth Group Incorporated (A)		43		1,079
Metal & Glass Containers - 1.38%
Pactiv Corporation (B)		30		748
Mortgage REITs - 2.16%
Annaly Capital Management, Inc.		87		1,173
Office Electronics - 1.28%
Xerox Corporation		60		696
Oil & Gas Exploration & Production - 3.62%
Apache Corporation		7		709
Devon Energy Corporation		14		1,259
				1,968
Oil & Gas Storage & Transportation - 3.63%
Atlas Pipeline Partners, L.P.		3		84
Boardwalk Pipeline Partners, LP		4		80
Energy Transfer Partners, L.P.		14		516
Enterprise Products Partners L.P.		45		1,160
MarkWest Energy Partners, L.P.		2		58
Regency Energy Partners LP		4		80
				1,978
Other Diversified Financial Services - 6.53%
Bank of America Corporation		56		1,966
J.P. Morgan Chase & Co.		34		1,583
				3,549
Packaged Foods & Meats - 4.49%
General Mills, Inc. (A)		18		1,230
Kraft Foods Inc.		37		1,212
				2,442
Pharmaceuticals - 0.61%
Johnson & Johnson		5		332
Property & Casualty Insurance - 5.22%
Allstate Corporation (The)		19		895
Travelers Companies, Inc. (The)		43		1,946
				2,841
Railroads - 2.97%
Union Pacific Corporation		23		1,615
Regional Banks - 2.94%
SunTrust Banks, Inc.		8		351
Synovus Financial Corp.		48		496
Zions Bancorporation		20		754
				1,601
Reinsurance - 1.18%
Everest Re Group, Ltd. (A)		7		640
Specialty Stores - 0.32%
Office Depot, Inc. (B)		29		171
Tobacco - 6.39%
Altria Group, Inc.		38		746
Lorillard, Inc.		18		1,259
Philip Morris International Inc.		31		1,472
				3,477
TOTAL COMMON STOCKS - 96.40%			$	52,432
(Cost: $50,586)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Wisconsin Electric Power Co.,
4.000%, 10-1-08	$	2,256		2,256
TOTAL SHORT-TERM SECURITIES - 4.15%			$	2,256
(Cost: $2,256)
TOTAL INVESTMENT SECURITIES - 100.55%			$	54,688
(Cost: $52,842)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.55%)				(300	)
NET ASSETS - 100.00%			$	54,388

Notes to Schedule of Investments
(A)Securities serve as cover for the following written options outstanding at September 30, 2008:
	Underlying Security	Contracts Subject to Call	Expiration Month/ Exercise Price	Premium Received			Market Value
	General Mills, Inc	––*	October/70.0		$	4		$	5
	UnitedHealth Group Incorporated:	––*	December/32.5			59			26
					$	63		$	31
	Underlying Security	Contracts Subject to Put	Expiration Month/ Exercise Price	Premium Received			Market Value
	Allstate Corporation (The):	––*	October/40.0		$	3		$	5
		––*	October/45.0			8			12
		––*	January/40.0			6			15
		––*	January/45.0			13			25
	Home Depot, Inc. (The):	––*	October/22.5			5			3
	Molson Coors Brewing Company,       Class B:	––*	October/50.0			5			13
		––*	January/50.0			7			15
	Solutia Inc.:	––*	October/17.5			8			22
		––*	December/15.0			28			42
		––*	December/17.5			12			24
					$	95		$	176
*Not shown due to rounding as amount is less than 500.
(B)No dividends were paid during the preceding 12 months.
The following acronym is used throughout this portfolio: ADR = American Depositary Receipts
See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY VALUE FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (cost - $52,842)	$	54,688
Cash		85
Receivables:
Fund shares sold		20
Dividends and interest		141
Investment securities sold		470
Prepaid and other assets		25
Total assets		55,429
LIABILITIES
Payable for investment securities purchased		446
Payable to Fund shareholders		267
Outstanding written options - at value (premium received - $158)		207
Accrued shareholder servicing		34
Accrued management fee		33
Accrued distribution and service fees		25
Accrued accounting services fee		4
Other		25
Total liabilities		1,041
Total net assets	$	54,388
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	56,409
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		70
Accumulated net realized loss on investment transactions		(3,888	)
Net unrealized appreciation in value of investments		1,797
Net assets applicable to outstanding units of capital	$	54,388
Net asset value per share (net assets divided by shares outstanding):
Class A	$14.19
Class B	$13.97
Class C	$14.04
Class E	$14.21
Class I	$14.20
Class Y	$14.20
Capital shares outstanding:
Class A		3,357
Class B		225
Class C		218
Class E		6
Class I		6
Class Y		28

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY VALUE FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                                (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $10)	$	738
Interest and amortization		32
Total income		770
Expenses:
Investment management fee		220
Shareholder servicing:
Class A		126
Class B		16
Class C		12
Class E		––	*
Class I		––	*
Class Y		––	*
Distribution and service fees:
Class A		69
Class B		19
Class C		17
Class E		––	*
Class Y		1
Registration fees		34
Accounting services fee		23
Audit fees		11
Custodian fees		3
Legal fees		1
Other		21
Total expenses		573
Net investment income		197
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized net loss on securities		(1,459	)
Realized net gain on written options		180
Realized net loss on investments		(1,279	)
Unrealized depreciation in value of securities during the period		(5,517	)
Unrealized depreciation in value of written options during the period		(60	)
Unrealized depreciation in value of investments during the period		(5,577	)
Net loss on investments		(6,856	)
Net decrease in net assets resulting from operations	$	(6,659	)

*Not shown due to rounding.

See Accompanying 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,
	2008				2008
DECREASE IN NET ASSETS
Operations:
Net investment income		$	197		$	434
Realized net gain (loss) on investments			(1,279	)		1,656
Unrealized depreciation			(5,577	)	(10,152		)
Net decrease in net assets resulting from operations			(6,659	)		(8,062	)
Distributions to shareholders from:(1)
Net investment income:
Class A			(139	)		(458	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)*		(1	)
Class I			(1	)		(1	)
Class Y			(2	)		(3	)
Realized gains on investment transactions:
Class A			(––	)		(4,876	)
Class B			(––	)		(372	)
Class C			(––	)		(322	)
Class E			(––	)		(7	)
Class I			(––	)		(7	)
Class Y			(—	)		(19	)
			(142	)		(6,066	)
Capital share transactions			(4,288	)		(4,139	)
Total decrease		(11,089		)	(18,267		)
NET ASSETS
Beginning of period			65,477			83,744
End of period		$	54,388		$	65,477
Accumulated undistributed net investment income		$	70		$	15

*Not shown due to rounding.
(1)See "Financial Highlights" on pages 54 - 59.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				7-31-03
Net asset value,      beginning of period		$	15.95		$	19.04		$	17.17		$	16.04		$	14.54		$	12.54			$	11.81
Income (loss)      from investment      operations:
Net investment           income			0.06			0.12			0.13			0.10			0.15			0.08				0.12
Net realized and           unrealized gain           (loss) on           investments			(1.78	)		(1.85	)		2.28			1.14			1.48			1.98				0.72
Total from investment      operations			(1.72	)		(1.73	)		2.41			1.24			1.63			2.06				0.84
Less distributions from:
Net investment           income			(0.04	)		(0.12	)		(0.13	)		(0.11	)		(0.13	)		(0.06	)			(0.11	)
Capital gains			(0.00	)		(1.24	)		(0.41	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)
Total distributions			(0.04	)		(1.36	)		(0.54	)		(0.11	)		(0.13	)		(0.06	)			(0.11	)
Net asset value,      end of period		$	14.19		$	15.95		$	19.04		$	17.17		$	16.04		$	14.54			$	12.54
Total return(1)		- -10.81		%		- -9.83	%		14.12	%		7.75	%		11.21	%		16.32	%			7.23	%
Net assets,      end of period      (in millions)		$48			$57			$73			$58			$41			$52				$64
Ratio of expenses to      average net assets      including expense      waiver			1.70	%(2)		1.52	%		1.49	%		1.53	%		1.47	%		1.45	%(2)(3)			1.29	%
Ratio of net investment      income to average      net assets including      expense waiver			0.75	%(2)		0.63	%		0.76	%		0.65	%		0.92	%		0.61	%(2)(3)			1.05	%
Ratio of expenses to      average net assets      excluding expense      waiver			1.70	%(2)(4)		1.52	%(4)		1.49	%(4)		1.53	%(4)		1.47	%(4)		1.52	%(2)(3)			1.50	%
Ratio of net investment      income to average      net assets excluding      expense waiver			0.75	%(2)(4)		0.63	%(4)		0.76	%(4)		0.65	%(4)		0.92	%(4)		0.53	%(2)(3)			0.84	%
Portfolio turnover rate			27	%		66	%		61	%		63	%		81	%		86	%			123	%

(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 Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	15.76		$	18.83		$	17.04		$	15.97		$	14.50			$	13.63
Income (loss) from      investment operations:
Net investment           income (loss)			(0.07	)		(0.09	)		(0.03	)		(0.04	)		0.03				0.01
Net realized and unrealized           gain (loss) on investments			(1.72	)		(1.80	)		2.23			1.12			1.44				0.90
Total from investment      operations			(1.79	)		(1.89	)		2.20			1.08			1.47				0.91
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.00	)			(0.04	)
Capital gains			(0.00	)		(1.18	)		(0.41	)		(0.00	)		(0.00	)			(0.00	)
Total distributions			(0.00	)		(1.18	)		(0.41	)		(0.01	)		(0.00	)			(0.04	)
Net asset value, end of period		$	13.97		$	15.76		$	18.83		$	17.04		$	15.97			$	14.50
Total return		- -11.36		%	- -10.72		%		12.99	%		6.73	%		10.14	%			6.65	%
Net assets, end of period      (in millions)		$3			$4			$6			$5			$2				$1
Ratio of expenses to average      net assets			2.87	%(2)		2.51	%		2.46	%		2.50	%		2.53	%			3.12	%(2)
Ratio of net investment income      (loss) to average net assets			- -0.44	%(2)		- -0.35	%		- -0.21	%		- -0.33	%		0.07	%			- -1.29	%(2)
Portfolio turnover rate			27	%		66	%		61	%		63	%		81	%			86	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	15.83		$	18.90		$	17.08		$	16.00		$	14.51			$	13.63
Income (loss) from      investment operations:
Net investment income (loss)			(0.03	)		(0.06	)		(0.01	)		(0.04	)		0.03				0.02
Net realized and unrealized           gain (loss) on investments			(1.76	)		(1.81	)		2.24			1.13			1.46				0.90
Total from investment      operations			(1.79	)		(1.87	)		2.23			1.09			1.49				0.92
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.00	)			(0.04	)
Capital gains			(0.00	)		(1.20	)		(0.41	)		(0.00	)		(0.00	)			(0.00	)
Total distributions			(0.00	)		(1.20	)		(0.41	)		(0.01	)		(0.00	)			(0.04	)
Net asset value, end of period		$	14.04		$	15.83		$	18.90		$	17.08		$	16.00			$	14.51
Total return		- -11.31		%	- -10.56		%		13.09	%		6.80	%		10.27	%			6.73	%
Net assets, end of period      (in millions)		$3			$4			$5			$4			$3				$1
Ratio of expenses to average      net assets			2.71	%(2)		2.41	%		2.38	%		2.41	%		2.42	%			2.90	%(2)
Ratio of net investment income      (loss) to average net assets			- -0.26	%(2)		- -0.25	%		- -0.12	%		- -0.23	%		0.15	%			- -1.18	%(2)
Portfolio turnover rate			27	%		66	%		61	%		63	%		81	%			86	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	15.97			$	19.09
Income (loss) from investment operations:
Net investment income			0.09				0.18
Net realized and unrealized loss on investments			(1.78	)			(1.90	)
Total from investment operations			(1.69	)			(1.72	)
Less distributions from:
Net investment income			(0.07	)			(0.16	)
Capital gains			(0.00	)			(1.24	)
Total distributions			(0.07	)			(1.40	)
Net asset value, end of period		$	14.21			$	15.97
Total return(3)		- -10.61		%			- -9.76	%
Net assets, end of period (in thousands)		$81				$90
Ratio of expenses to average net assets			1.22	%(4)			1.18	%(4)
Ratio of net investment income to average net assets			1.22	%(4)			0.98	%(4)
Portfolio turnover rate			27	%			66	%(5)

(1)Class is closed.

(2)Commencement of operations of the class.

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

(4)Annualized.

(5)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	15.97			$	19.10
Income (loss) from investment operations:
Net investment income			0.11				0.20
Net realized and unrealized loss on investments			(1.80	)			(1.90	)
Total from investment operations			(1.69	)			(1.70	)
Less distributions from:
Net investment income			(0.08	)			(0.19	)
Capital gains			(0.00	)			(1.24	)
Total distributions			(0.08	)			(1.43	)
Net asset value, end of period		$	14.20			$	15.97
Total return		- -10.62		%			- -9.63	%
Net assets, end of period (in thousands)		$81				$90
Ratio of expenses to average net assets			1.10	%(2)			1.07	%(2)
Ratio of net investment income to average net assets			1.35	%(2)			1.09	%(2)
Portfolio turnover rate			27	%			66	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the 12 months ended March 31, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	15.96		$	19.04		$	17.18		$	16.05		$	14.54			$	13.63
Income (loss) from      investment operations:
Net investment income			0.09			0.16	(2)		0.22	(2)		0.13			0.17				0.01
Net realized and           unrealized gain (loss)           on investments			(1.79	)		(1.85	)(2)		2.22	(2)		1.15			1.49				0.95
Total from investment      operations			(1.70	)		(1.69	)		2.44			1.28			1.66				0.96
Less distributions from:
Net investment income			(0.06	)		(0.15	)		(0.17	)		(0.15	)		(0.15	)			(0.05	)
Capital gains			(0.00	)		(1.24	)		(0.41	)		(0.00	)		(0.00	)			(0.00	)
Total distributions			(0.06	)		(1.39	)		(0.58	)		(0.15	)		(0.15	)			(0.05	)
Net asset value, end of period		$	14.20		$	15.96		$	19.04		$	17.18		$	16.05			$	14.54
Total return		- -10.67		%		- -9.60	%		14.28	%		7.99	%		11.44	%			7.05	%
Net assets, end of period      (in thousands)		$399			$419			$294		$12,286			$20,286				$22,379
Ratio of expenses to average      net assets			1.36	%(3)		1.31	%		1.29	%		1.31	%		1.34	%			1.48	%(3)
Ratio of net investment      income to average      net assets			1.11	%(3)		0.85	%		0.96	%		0.89	%		1.09	%			0.35	%(3)
Portfolio turnover rate			27	%		66	%		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 Accompanying 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, 2008, your Fund owned:

Ivy European Opportunities Fund,       Class I	$	60.60
Ivy Pacific Opportunities Fund,       Class I	$	39.32
Cash and Cash Equivalents	$	0.08

The Investments of Ivy Managed European/Pacific Fund
September 30, 2008
(In Thousands) (Unaudited)
AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy European Opportunities Fund, Class I		1,215	$	31,376
Ivy Pacific Opportunities Fund, Class I		1,595		20,355
TOTAL AFFILIATED MUTUAL FUNDS - 99.92%			$	51,731
(Cost: $79,922)

SHORT-TERM SECURITIES	Principal
Repurchase Agreements
J.P. Morgan Securities, Inc., Repurchase Agreement       dated 9-30-08 to be repurchased at $148,
0.050%, 10-1-08 (A)	$	148		148
TOTAL SHORT-TERM SECURITIES - 0.29%			$	148
(Cost: $148)
TOTAL INVESTMENT SECURITIES - 100.21%			$	51,879
(Cost: $80,070)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.21%)				(109	)
NET ASSETS - 100.00%			$	51,770

Notes to Schedule of Investments

(A)Collateralized by $133 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $150.

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY MANAGED EUROPEAN/PACIFIC FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value:
Investments in affiliated mutual funds (cost - $79,922)	$	51,731
Repurchase agreement (cost - $148)		148
		51,879
Receivable for Fund shares sold		240
Prepaid and other assets		40
Total assets		52,159
LIABILITIES
Payable for investment securities purchased		191
Payable to Fund shareholders		160
Accrued shareholder servicing		12
Due to custodian		7
Accrued accounting services fee		2
Accrued management fee		2
Accrued distribution and service fees		––	*
Other		15
Total liabilities		389
Total net assets	$	51,770
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	78,257
Accumulated undistributed income (loss):
Accumulated net investment loss		(224	)
Accumulated undistributed net realized gain on investment transactions		1,928
Net unrealized depreciation in value of investments	(28,191		)
Net assets applicable to outstanding units of capital	$	51,770
Net asset value per share (net assets divided by shares outstanding):
Class A	$7.16
Class B	$7.09
Class C	$7.10
Class E	$7.17
Class I	$7.19
Class Y	$7.17
Capital shares outstanding:
Class A		6,761
Class B		152
Class C		242
Class E		21
Class I		21
Class Y		37

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY MANAGED EUROPEAN/PACIFIC FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                               (Unaudited)

INVESTMENT LOSS
Income:
Interest and amortization	$	2
Dividends from affiliated mutual funds		––
Total income		2
Expenses:
Distribution and service fees:
Class A		73
Class B		7
Class C		12
Class E		––	*
Class Y		––	*
Shareholder servicing:
Class A		34
Class B		2
Class C		2
Class E		––	*
Class I		––	*
Class Y		––	*
Registration fees		36
Investment management fee		16
Accounting services fee		13
Audit fees		10
Custodian fees		2
Legal fees		––	*
Other		19
Total expenses		226
Net investment loss		(224	)
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS
Capital gains distributions from affiliated mutual funds		––
Realized net loss on investments in affiliated mutual funds		(519	)
Realized net loss on investments		(519	)
Unrealized depreciation in value of affiliated mutual funds during the period		(18,418	)
Net loss on investments		(18,937	)
Net decrease in net assets resulting from operations	$	(19,161	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY MANAGED EUROPEAN/PACIFIC FUND
      (In Thousands)                                                                                                               (Unaudited)
     

	For the six months ended September 30,				For the period from 4-2-07(1) through
	2008				3-31-08
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	(224	)	$	2,037
Realized net gain (loss) on investments			(519	)		2,549
Unrealized depreciation		(18,418		)		(9,773	)
Net decrease in net assets resulting from operations		(19,161		)		(5,187	)
Distributions to shareholders from:(2)
Net investment income:
Class A			(––	)		(1,962	)
Class B			(––	)		(50	)
Class C			(––	)		(92	)
Class E			(––	)		(11	)
Class I			(––	)		(11	)
Class Y			(––	)		(13	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		(––	)
Class I			(––	)		(––	)
Class Y			(––	)		(––	)
			(––	)		(2,139	)
Capital share transactions			12,832			65,425
Total increase (decrease)			(6,329	)		58,099
NET ASSETS
Beginning of period			58,099			(––	)
End of period		$	51,770		$	58,099
Accumulated net investment loss		$	(224	)	$	(––	)*

*Not shown due to rounding.
(1)Commencement of operations.
(2)See "Financial Highlights" on pages 65 - 70.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.81			$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.03		)			0.47	(2)
Net realized and unrealized loss on investments		(2.62		)			(0.15	)(2)
Total from investment operations		(2.65		)			0.32
Less distributions from:
Net investment income		(0.00		)			(0.51	)
Capital gains		(0.00		)			(0.00	)
Total distributions		(0.00		)			(0.51	)
Net asset value, end of period		$	7.16			$	9.81
Total return(3)	- -27.01			%			2.67	%
Net assets, end of period (in millions)		$49				$54
Ratio of expenses to average net assets       including expense waiver			0.66	%(4)			0.88	%(4)
Ratio of net investment income (loss) to average       net assets including expense waiver		- -0.66		%(4)			6.52	%(4)
Ratio of expenses to average net assets       excluding expense waiver			0.66	%(4)(5)			0.89	%(4)
Ratio of net investment income (loss) to average       net assets excluding expense waiver		- -0.66		%(4)(5)			6.51	%(4)
Portfolio turnover rate			1	%			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.
(5)There was no waiver of expenses during the period.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.78			$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.07		)			0.44	(2)
Net realized and unrealized loss on investments		(2.62		)			(0.21	)(2)
Total from investment operations		(2.69		)			0.23
Less distributions from:
Net investment income		(0.00		)			(0.45	)
Capital gains		(0.00		)			(0.00	)
Total distributions		(0.00		)			(0.45	)
Net asset value, end of period		$	7.09			$	9.78
Total return	- -27.51			%			1.87	%
Net assets, end of period (in millions)		$1				$1
Ratio of expenses to average net assets       including expense waiver			1.60	%(3)			1.77	%(3)
Ratio of net investment income (loss) to average       net assets including expense waiver		- -1.59		%(3)			5.43	%(3)
Ratio of expenses to average net assets       excluding expense waiver			1.60	%(3)(4)			1.78	%(3)
Ratio of net investment income (loss) to average       net assets excluding expense waiver		- -1.59		%(3)(4)			5.42	%(3)
Portfolio turnover rate			1	%			0	%*

*Not shown due to rounding.
(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 Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.79			$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.07		)			0.45	(2)
Net realized and unrealized loss on investments		(2.62		)			(0.21	)(2)
Total from investment operations		(2.69		)			0.24
Less distributions from:
Net investment income		(0.00		)			(0.45	)
Capital gains		(0.00		)			(0.00	)
Total distributions		(0.00		)			(0.45	)
Net asset value, end of period		$	7.10			$	9.79
Total return	- -27.48			%			1.90	%
Net assets, end of period (in millions)		$2				$3
Ratio of expenses to average net assets       including expense waiver			1.44	%(3)			1.65	%(3)
Ratio of net investment income (loss) to average       net assets including expense waiver		- -1.43		%(3)			6.18	%(3)
Ratio of expenses to average net assets       excluding expense waiver			1.44	%(3)(4)			1.66	%(3)
Ratio of net investment income (loss) to average       net assets excluding expense waiver		- -1.43		%(3)(4)			6.17	%(3)
Portfolio turnover rate			1	%			0	%*

*Not shown due to rounding.
(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 Accompanying Notes to Financial Statements.

Financial Highlights
      IVY MANAGED EUROPEAN/PACIFIC FUND
      Class E Shares⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.81			$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.02		)			0.49	(3)
Net realized and unrealized loss on investments		(2.62		)			(0.16	) (3)
Total from investment operations		(2.64		)			0.33
Less distributions from:
Net investment income		(0.00		)			(0.52	)
Capital gains		(0.00		)			(0.00	)
Total distributions		(0.00		)			(0.52	)
Net asset value, end of period		$	7.17			$	9.81
Total return(4)	- -26.91			%			2.79	%
Net assets, end of period (in thousands)		$150				$206
Ratio of expenses to average net assets       including expense waiver			0.50	%(5)			0.79	%(5)
Ratio of net investment income (loss) to average       net assets including expense waiver		- -0.50		%(5)			4.44	%(5)
Ratio of expenses to average net assets       excluding expense waiver			0.50	%(5)(6)			0.80	%(5)
Ratio of net investment income (loss) to average       net assets excluding expense waiver		- -0.50		%(5)(6)			4.43	%(5)
Portfolio turnover rate			1	%			0	%*

*Not shown due to rounding.
(1)Class is closed.
(2)Commencement of operations of the class.
(3)Based on average weekly shares outstanding.
(4)Total return calculated without taking into account the sales load deducted on an initial purchase.
(5)Annualized.
(6)There was no waiver of expenses during the period.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY MANAGED EUROPEAN/PACIFIC FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.82			$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.01		)			0.52	(2)
Net realized and unrealized loss on investments		(2.62		)			(0.16	)(2)
Total from investment operations		(2.63		)			0.36
Less distributions from:
Net investment income		(0.00		)			(0.54	)
Capital gains		(0.00		)			(0.00	)
Total distributions		(0.00		)			(0.54	)
Net asset value, end of period		$	7.19			$	9.82
Total return	- -26.78			%			3.07	%
Net assets, end of period (in thousands)		$151				$206
Ratio of expenses to average net assets       including expense waiver			0.26	%(3)			0.55	%(3)
Ratio of net investment income (loss) to average       net assets including expense waiver		- -0.25		%(3)			4.67	%(3)
Ratio of expenses to average net assets       excluding expense waiver			0.26	%(3)(4)			0.56	%(3)
Ratio of net investment income (loss) to average       net assets excluding expense waiver		- -0.25		%(3)(4)			4.66	%(3)
Portfolio turnover rate			1	%			0	%*

*Not shown due to rounding.
(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 Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.81			$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.02		)			0.49	(2)
Net realized and unrealized loss on investments		(2.62		)		(0.16		)(2)
Total from investment operations		(2.64		)			0.33
Less distributions from:
Net investment income		(0.00		)		(0.52		)
Capital gains		(0.00		)		(0.00		)
Total distributions		(0.00		)		(0.52		)
Net asset value, end of period		$	7.17			$	9.81
Total return	- -26.91			%			2.77	%
Net assets, end of period (in thousands)		$263				$280
Ratio of expenses to average net assets       including expense waiver			0.68	%(3)			0.81	%(3)
Ratio of net investment income (loss) to average       net assets including expense waiver		- -0.68		%(3)			4.76	%(3)
Ratio of expenses to average net assets       excluding expense waiver			0.68	%(3)(4)			0.82	%(3)
Ratio of net investment income (loss) to average       net assets excluding expense waiver		- -0.68		%(3)(4)			4.75	%(3)
Portfolio turnover rate			1	%			0	%*

*Not shown due to rounding.
(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 Accompanying 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, 2008, your Fund owned:

Ivy International Balanced Fund,       Class I	$	43.15
Ivy International Core Equity Fund,       Class I	$	19.77
Ivy International Growth Fund,       Class I	$	14.63
Ivy European Opportunities Fund,       Class I	$	13.57
Ivy Pacific Opportunities Fund,       Class I	$	8.85
Cash and Cash Equivalents	$	0.03

The Investments of Ivy Managed International Opportunities Fund
September 30, 2008
(In Thousands)                                                                                                                    (Unaudited)
AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy European Opportunities Fund, Class I		588	$	15,193
Ivy International Balanced Fund, Class I		3,587		48,324
Ivy International Core Equity Fund, Class I		1,652		22,134
Ivy International Growth Fund, Class I		579		16,378
Ivy Pacific Opportunities Fund, Class I		777		9,909
TOTAL AFFILIATED MUTUAL FUNDS - 99.97%			$	111,938
(Cost: $150,288)

SHORT-TERM SECURITIES	Principal
Repurchase Agreements
J.P. Morgan Securities, Inc., Repurchase Agreement       dated 9-30-08 to be repurchased at $239,
0.050%, 10-1-08 (A)	$	239		239
TOTAL SHORT-TERM SECURITIES - 0.21%			$	239
(Cost: $239)
TOTAL INVESTMENT SECURITIES - 100.18%			$	112,177
(Cost: $150,527)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.18%)				(203	)
NET ASSETS - 100.00%			$	111,974

Notes to Schedule of Investments

(A)Collateralized by $215 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $243.

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value:
Investments in affiliated mutual funds (cost - $150,288)	$	111,938
Repurchase agreement (cost - $239)		239
		112,177
Receivables:
Fund shares sold		408
Interest		––	*
Prepaid and other assets		37
Total assets		112,622
LIABILITIES
Payable to Fund shareholders		308
Payable for investment securities purchased		288
Accrued shareholder servicing		17
Due to custodian		10
Accrued management fee		5
Accrued accounting services fee		3
Accrued distribution and service fees		1
Other		16
Total liabilities		648
Total net assets	$	111,974
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	147,771
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		881
Accumulated undistributed net realized gain on                  investment transactions		1,672
Net unrealized depreciation in value of investments		(38,350	)
Net assets applicable to outstanding units of capital	$	111,974
Net asset value per share (net assets divided by shares outstanding):
Class A	$7.95
Class B	$7.89
Class C	$7.89
Class E	$7.96
Class I	$7.98
Class Y	$7.95
Capital shares outstanding:
Class A		13,114
Class B		430
Class C		454
Class E		21
Class I		21
Class Y		49

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                            (Unaudited)

INVESTMENT INCOME
Income:
Dividends from affiliated mutual funds	$	1,134
Interest and amortization		4
Total income		1,138
Expenses:
Distribution and service fees:
Class A		143
Class B		20
Class C		21
Class E		––	*
Class Y		1
Shareholder servicing:
Class A		46
Class B		3
Class C		2
Class E		––	*
Class I		––	*
Class Y		––	*
Registration fees		38
Investment management fee		31
Accounting services fee		20
Audit fees		10
Custodian fees		2
Legal fees		1
Other		25
Total expenses		363
Net investment income		775
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS
Capital gains distributions from affiliated mutual funds		––
Realized net loss on investments in affiliated mutual funds		(500	)
Realized net loss on investments		(500	)
Unrealized depreciation in value of affiliated mutual funds                      during the period		(29,677	)
Net loss on investments		(30,177	)
Net decrease in net assets resulting from operations	$	(29,402	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

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

	For the six months ended September 30,				For the period from 4-2-07(1) through
	2008				3-31-08
INCREASE IN NET ASSETS
Operations:
Net investment income		$	775		$	2,574
Realized net gain (loss) on investments			(500	)		2,172
Unrealized depreciation			(29,677	)		(8,673	)
Net decrease in net assets resulting                        from operations			(29,402	)		(3,927	)
Distributions to shareholders from:(2)
Net investment income:
Class A			(––	)		(2,299	)
Class B			(––	)		(67	)
Class C			(––	)		(75	)
Class E			(––	)		(7	)
Class I			(––	)		(7	)
Class Y			(––	)		(13	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		(––	)
Class I			(––	)		(––	)
Class Y			(––	)		(––	)
			(––	)		(2,468	)
Capital share transactions			33,068			114,703
Total increase			3,666			108,308
NET ASSETS
Beginning of period			108,308			––
End of period		$	111,974		$	108,308
Accumulated undistributed net                  investment income		$	881		$	106

(1)Commencement of operations.

(2)See "Financial Highlights" on pages 76 - 81.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	10.06		$	10.00
Income (loss) from investment operations:
Net investment income			0.05			0.35	(2)
Net realized and unrealized gain (loss)             on investments			(2.16	)		0.04	(2)
Total from investment operations			(2.11	)		0.39
Less distributions from:
Net investment income			(0.00	)		(0.33	)
Capital gains			(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.33	)
Net asset value, end of period		$	7.95		$	10.06
Total return(3)		- -20.97		%		3.75	%
Net assets, end of period (in millions)		$104			$100
Ratio of expenses to average net assets       including expense waiver			0.54	%(4)		0.67	%(4)
Ratio of net investment income to average       net assets including expense waiver			1.31	%(4)		4.67	%(4)
Ratio of expenses to average net assets       excluding expense waiver			0.54	%(4)(5)		0.68	%(4)
Ratio of net investment income to average       net assets excluding expense waiver			1.31	%(4)(5)		4.66	%(4)
Portfolio turnover rate			7	%		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.

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

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	10.04		$	10.00
Income (loss) from investment operations:
Net investment income			0.02			0.33	(2)
Net realized and unrealized loss             on investments			(2.17	)		(0.02	)(2)
Total from investment operations			(2.15	)		0.31
Less distributions from:
Net investment income			(0.00	)		(0.27	)
Capital gains			(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.27	)
Net asset value, end of period		$	7.89		$	10.04
Total return		- -21.41		%		2.98	%
Net assets, end of period (in millions)		$3			$4
Ratio of expenses to average net assets       including expense waiver			1.36	%(3)		1.48	%(3)
Ratio of net investment income to average       net assets including expense waiver			0.52	%(3)		4.05	%(3)
Ratio of expenses to average net assets       excluding expense waiver			1.36	%(3)(4)		1.49	%(3)
Ratio of net investment income to average       net assets excluding expense waiver			0.52	%(3)(4)		4.04	%(3)
Portfolio turnover rate			7	%		0	%

(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 Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	10.04		$	10.00
Income (loss) from investment operations:
Net investment income			0.02			0.30	(2
Net realized and unrealized gain (loss)             on investments			(2.17	)		0.02	(2)
Total from investment operations			(2.15	)		0.32
Less distributions from:
Net investment income			(0.00	)		(0.28	)
Capital gains			(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.28	)
Net asset value, end of period		$	7.89		$	10.04
Total return		- -21.41		%		3.05	%
Net assets, end of period (in millions)		$4			$4
Ratio of expenses to average net assets       including expense waiver			1.34	%(3)		1.44	%(3)
Ratio of net investment income to average       net assets including expense waiver			0.54	%(3)		3.70	%(3)
Ratio of expenses to average net assets       excluding expense waiver			1.34	%(3)(4)		1.45	%(3)
Ratio of net investment income to average       net assets excluding expense waiver			0.54	%(3)(4)		3.69	%(3)
Portfolio turnover rate			7	%		0	%

(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 Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	10.06		$	10.00
Income (loss) from investment operations:
Net investment income			0.07			0.38	(3)
Net realized and unrealized gain (loss)             on investments			(2.17	)		0.02	(3)
Total from investment operations			(2.10	)		0.40
Less distributions from:
Net investment income			(0.00	)		(0.34	)
Capital gains			(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.34	)
Net asset value, end of period		$	7.96		$	10.06
Total return(4)		- -20.87		%		3.82	%
Net assets, end of period (in thousands)		$164			$208
Ratio of expenses to average net assets       including expense waiver			0.44	%(5)		0.60	%(5)
Ratio of net investment income to average       net assets including expense waiver			1.36	%(5)		3.57	%(5)
Ratio of expenses to average net assets       excluding expense waiver			0.44	%(5)(6)		0.61	%(5)
Ratio of net investment income to average       net assets excluding expense waiver			1.36	%(5)(6)		3.56	%(5)
Portfolio turnover rate			7	%		0	%

(1)Class is closed.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

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

(5)Annualized.

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

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	10.07		$	10.00
Income (loss) from investment operations:
Net investment income			0.08			0.41	(2)
Net realized and unrealized gain (loss)             on investments			(2.17	)		0.02	(2)
Total from investment operations			(2.09	)		0.43
Less distributions from:
Net investment income			(0.00	)		(0.36	)
Capital gains			(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.36	)
Net asset value, end of period		$	7.98		$	10.07
Total return		- -20.76		%		4.10	%
Net assets, end of period (in thousands)		$165			$208
Ratio of expenses to average net assets       including expense waiver			0.18	%(3)		0.36	%(3)
Ratio of net investment income to average       net assets including expense waiver			1.63	%(3)		3.81	%(3)
Ratio of expenses to average net assets       excluding expense waiver			0.18	%(3)(4)		0.37	%(3)
Ratio of net investment income to average       net assets excluding expense waiver			1.63	%(3)(4)		3.80	%(3)
Portfolio turnover rate			7	%		0	%

(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 Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	10.06		$	10.00
Income (loss) from investment operations:
Net investment income			0.06			0.37	(2)
Net realized and unrealized gain (loss)             on investments			(2.17	)		0.03	(2)
Total from investment operations			(2.11	)		0.40
Less distributions from:
Net investment income			(0.00	)		(0.34	)
Capital gains			(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.34	)
Net asset value, end of period		$	7.95		$	10.06
Total return		- -20.97		%		3.81	%
Net assets, end of period (in thousands)		$389			$446
Ratio of expenses to average net assets       including expense waiver			0.54	%(3)		0.64	%(3)
Ratio of net investment income to average       net assets including expense waiver			1.28	%(3)		3.83	%(3)
Ratio of expenses to average net assets       excluding expense waiver			0.54	%(3)(4)		0.65	%(3)
Ratio of net investment income to average       net assets excluding expense waiver			1.28	%(3)(4)		3.82	%(3)
Portfolio turnover rate			7	%		0	%

(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 Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY CUNDILL GLOBAL VALUE FUND

Portfolio Highlights

On September 30, 2008, Ivy Cundill Global Value Fund had net assets totaling $442,375
(in thousands) invested in a diversified portfolio of:

70.42%	Foreign Common Stocks
23.85%	Domestic Common Stocks
5.73%	Cash and Cash Equivalents

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

United States	$	23.85
Japan	$	20.46
Italy	$	11.50
South Korea	$	9.66
Germany	$	9.12
Canada	$	8.19
Bermuda	$	6.56
Cash and Cash Equivalents	$	5.73
Thailand	$	3.31
Other(1)	$	1.62

(1)Includes $1.12 Ireland and $0.50 Cayman Islands.

Sector Weightings

Financials Stocks	$	26.07
Consumer Discretionary Stocks	$	18.40
Consumer Staples Stocks	$	18.34
Telecommunications Stocks	$	11.21
Information Technology Stocks	$	9.62
Cash and Cash Equivalents	$	5.73
Health Care Stocks	$	5.49
Materials Stocks	$	5.14

The Investments of Ivy Cundill Global Value Fund
September 30, 2008
(In Thousands)                                                                                                                       (Unaudited)
COMMON STOCKS	Shares		Value
Bermuda - 6.56%
First Pacific Company Limited (A)	33,136		$	17,532
Montpelier Re Holdings Ltd.		695		11,471
				29,003
Canada - 8.19%
Fairfax Financial Holdings Limited (A)		69		22,086
Loblaw Companies Limited (A)		507		14,154
				36,240
Cayman Islands - 0.50%
Semiconductor Manufacturing International Corporation (A)(B)	72,552			2,196
Germany - 9.12%
Deutsche Telekom AG, Registered Shares (A)		1,099		16,695
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft,       Registered Shares (A)		156		23,643
				40,338
Ireland - 1.12%
Allied Irish Banks, p.l.c. (A)		393		3,210
Allied Irish Banks, p.l.c., ADR		107		1,758
				4,968
Italy - 11.50%
IFIL INVESTMENTS S.p.A. (A)		3,068		13,914
Italmobiliare S.p.A., Non-Convertible Savings Shares (A)		299		13,435
Mediaset S.p.A. (A)		2,850		18,100
Parmalat SpA (A)(B)		2,303		5,435
				50,884
Japan - 20.46%
AIFUL Corporation (A)		1,390		10,753
Asatsu-DK Inc. (A)		523		14,911
Coca-Cola West Holdings Company, Limited (A)		254		5,740
Kirin Brewery Company, Limited (A)		1,071		14,072
Mabuchi Motor Co., Ltd. (A)		200		9,094
Sega Sammy Holdings Inc. (A)(B)		510		4,613
Seven & i Holdings Co., Ltd. (A)		785		22,539
Takefuji Corporation (A)		676		8,803
				90,525
South Korea - 9.66%
Korea Tobacco & Ginseng Corporation (A)		61		4,534
Samsung Electronics Co., Ltd. (A)		48		15,157
SK Telecom Co., Ltd. (A)		109		18,718
SK Telecom Co., Ltd., ADR		229		4,307
				42,716
Thailand - 3.31%
Thai Beverage Public Company Limited (A)	93,588			14,647
United States - 23.36%
BCE Inc.		285		9,892
Dell Inc. (B)		435		7,168
DIRECTV Group, Inc. (The) (B)		701		18,339
Liberty Media Corporation, Series A Liberty Entertainment (B)		751		18,734
Louisiana-Pacific Corporation		1,000		9,300
Microsoft Corporation		334		8,903
Office Depot, Inc. (B)		1,151		6,699
Pfizer Inc.		1,318		24,304
				103,339
TOTAL COMMON STOCKS - 93.78%			$	414,856
(Cost: $472,737)
INVESTMENT FUNDS
United States
Financial Select Sector SPDR Fund (The)		110		2,188
TOTAL INVESTMENT FUNDS - 0.49%			$	2,188
(Cost: $2,241)
SHORT-TERM SECURITIES	Principal
Repurchase Agreements
J.P. Morgan Securities, Inc., Repurchase Agreement       dated 9-30-08 to be repurchased at $4,982,
0.050%, 10-1-08 (C)	$	4,982		4,982
TOTAL SHORT-TERM SECURITIES - 1.13%			$	4,982
(Cost: $4,982)
TOTAL INVESTMENT SECURITIES - 95.40%			$	422,026
(Cost: $479,960)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 4.60%				20,349
NET ASSETS - 100.00%			$	442,375

Notes to Schedule of Investments
The following forward currency contracts were outstanding at September 30, 2008:
	Type	Currency	Currency Amount Covered by Contract	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
	Sell	Euro	52,577	10-10-08		$	7,099		$	––
	Sell	Euro	9,135	1-23-09			1,116			––
	Sell	Japanese Yen	8,786,494	10-10-08			4,094			––
	Sell	Singapore Dollar	18,894	10-10-08			567			––
	Sell	South Korean Won	49,915,388	10-10-08			9,833			––
						$	22,709		$	––

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

(B)No dividends were paid during the preceding 12 months.

(C)Collateralized by $4,470 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $5,049.

Securities with an aggregate market value of $257,741, representing 58.26% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees.

The following acronym is used throughout this portfolio:
ADR = American Depositary Receipts

	Market Sector Diversification
	(as a % of net assets)
	Financials	26.07%
	Consumer Discretionary	18.40%
	Consumer Staples	18.34%
	Telecommunication Services	11.21%
	Information Technology	9.62%
	Health Care	5.49%
	Materials	5.14%
	Other+	5.73%
+Includes cash and cash equivalents and other assets and liabilities
See Accompanying Notes to Financial Statements

Statement of Assets and Liabilities
      IVY CUNDILL GLOBAL VALUE FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value:
Securities (cost - $474,978)	$	417,044
Repurchase agreement (cost - $4,982)		4,982
		422,026
Cash denominated in foreign currencies (cost - $600)		577
Unrealized appreciation on forward currency contracts		22,709
Receivables:
Investment securities sold		4,847
Dividends and interest		1,350
Fund shares sold		278
Prepaid and other assets		49
Total assets		451,836
LIABILITIES
Payable for investment securities purchased		5,584
Payable to Fund shareholders		2,201
Due to custodian		682
Accrued management fee		379
Accrued shareholder servicing		274
Accrued distribution and service fees		180
Accrued accounting services fee		8
Accrued administrative fee		4
Other		149
Total liabilities		9,461
Total net assets	$	442,375

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities                                                      (Continued)
      IVY CUNDILL GLOBAL VALUE FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	499,095
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		1,496
Accumulated net realized loss on investment transactions		(22,963	)
Net unrealized depreciation in value of investments		(35,253	)
Net assets applicable to outstanding units of capital	$	442,375
Net asset value per share (net assets divided by shares outstanding):
Class A	$11.57
Class B	$11.25
Class C	$11.21
Class E	$11.51
Class I	$11.72
Class Y	$11.65
Advisor Class	$11.64
Capital shares outstanding:
Class A		29,139
Class B		2,540
Class C		5,879
Class E		34
Class I		127
Class Y		585
Advisor Class		173

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY CUNDILL GLOBAL VALUE FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                              (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $1,190)	$	10,290
Interest and amortization		162
Total income		10,452
Expenses:
Investment management fee		2,638
Distribution and service fees:
Class A		505
Class B		169
Class C		421
Class E		1
Class Y		9
Shareholder servicing:
Class A		772
Class B		86
Class C		133
Class E		2
Class I		1
Class Y		7
Advisor Class		––	*
Custodian fees		62
Accounting services fee		51
Administrative fee		27
Audit fees		23
Legal fees		4
Other		186
Total		5,097
Less expenses in excess of limit		(13	)
Total expenses		5,084
Net investment income		5,368
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized net gain on securities		903
Realized net gain on forward currency contracts		1,234
Realized net loss on foreign currency transactions		(2,733	)
Realized net loss on investments		(596	)
Unrealized depreciation in value of securities during the period		(92,420	)
Unrealized appreciation in value of forward currency contracts during the period		29,935
Unrealized depreciation in value of investments during the period		(62,485	)
Net loss on investments		(63,081	)
Net decrease in net assets resulting from operations	$	(57,713	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

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,
	2008				2008
DECREASE IN NET ASSETS
Operations:
Net investment income		$	5,368		$	7,346
Realized net gain (loss) on investments			(596	)		5,194
Unrealized depreciation			(62,485	)	(113,157		)
Net decrease in net assets resulting                        from operations			(57,713	)	(100,617		)
Distributions to shareholders from:(1)
Net investment income:
Class A			(––	)		(6,280	)
Class B			(––	)		(120	)
Class C			(––	)		(749	)
Class E			(––	)		(3	)
Class I			(––	)		(29	)
Class Y			(––	)		(154	)
Advisor Class			(––	)		(46	)
Class II			NA			(––	)
Realized gains on investment transactions:
Class A			(––	)		(45,728	)
Class B			(––	)		(4,026	)
Class C			(––	)		(12,421	)
Class E			(––	)		(31	)
Class I			(––	)		(159	)
Class Y			(––	)		(834	)
Advisor Class			(––	)		(233	)
Class II			NA			(––	)
			(––	)		(70,813	)
Capital share transactions			(90,940	)	(235,499		)
Total decrease		(148,653		)	(406,929		)
NET ASSETS
Beginning of period			591,028			997,957
End of period		$	442,375		$	591,028
Accumulated undistributed net investment income (loss)		$	1,496		$	(1,139	)

(1)See "Financial Highlights" on pages 90 - 96.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	12.97		$	16.28		$	15.52		$	13.79		$	12.57		$	11.41		$	8.39
Income (loss) from      investment operations:
Net investment           income			0.14			0.18			0.13			0.17			0.04			0.01			0.01
Net realized and           unrealized gain (loss)           on investments			(1.54	)		(2.00	)		1.49			2.21			1.25			1.15			3.05
Total from investment      operations			(1.40	)		(1.82	)		1.62			2.38			1.29			1.16			3.06
Less distributions from:
Net investment           income			(0.00	)		(0.18	)		(0.11	)		(0.16	)		(0.07	)		(0.00	)		(0.04	)
Capital gains			(0.00	)		(1.31	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(1.49	)		(0.86	)		(0.65	)		(0.07	)		(0.00	)		(0.04	)
Net asset value,      end of period		$	11.57		$	12.97		$	16.28		$	15.52		$	13.79		$	12.57		$	11.41
Total return(1)		- -10.79		%	- -12.07		%		10.71	%		17.49	%		10.29	%		10.17	%		36.43	%
Net assets, end of period      (in millions)		$337			$443			$688			$625			$321			$59			$30
Ratio of expenses to average      net assets including      expense waiver			1.76	%(2)		1.59	%		1.55	%		1.62	%		1.74	%		1.70	%(2)		2.05	%
Ratio of net investment      income (loss) to average      net assets including      expense waiver			2.16	%(2)		1.05	%		0.81	%		1.09	%		0.08	%		- -0.09	%(2)		0.18	%
Ratio of expenses to average      net assets excluding      expense waiver			1.76	%(2)(3)		1.59	%(3)		1.55	%(3)		1.62	%(3)		1.74	%(3)		1.84	%(2)		2.21	%
Ratio of net investment      income (loss) to average      net assets excluding      expense waiver			2.16	%(2)(3)		1.05	%(3)		0.81	%(3)		1.09	%(3)		0.08	%(3)		- -0.23	%(2)		0.02	%
Portfolio turnover rate			26	%		39	%		42	%		4	%		5	%		1	%		24	%

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

(2)Annualized.

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

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	12.68		$	15.93		$	15.23		$	13.54		$	12.38		$	11.26		$	8.32
Income (loss) from       investment operations:
Net investment             income (loss)			0.07			0.03	(1)		(0.01	)		0.06			(0.01	)		(0.02	)		(0.06	)
Net realized and             unrealized gain (loss)             on investments			(1.50	)		(1.93	)(1)		1.46			2.14			1.17			1.14			3.00
Total from investment       operations			(1.43	)		(1.90	)		1.45			2.20			1.16			1.12			2.94
Less distributions from:
Net investment income			(0.00	)		(0.04	)		(0.00	)		(0.02	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(1.31	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(1.35	)		(0.75	)		(0.51	)		(0.00	)		(0.00	)		(0.00	)
Net asset value,       end of period		$	11.25		$	12.68		$	15.93		$	15.23		$	13.54		$	12.38		$	11.26
Total return		- -11.28		%	- -12.83		%		9.82	%		16.43	%		9.37	%		9.95	%		35.34	%
Net assets, end of period       (in millions)		$29			$37			$59			$57			$37			$12			$7
Ratio of expenses to       average net assets       including expense       waiver			2.63	%(2)		2.48	%		2.44	%		2.51	%		2.62	%		2.52	%(2)		3.20	%
Ratio of net investment       income (loss) to average       net assets including       expense waiver			1.27	%(2)		0.18	%		- -0.07	%		0.21	%		- -0.86	%		- -1.31	%(2)		- -1.13	%
Ratio of expenses to       average net assets       excluding expense       waiver			2.63	%(2)(3)		2.48	%(3)		2.44	%(3)		2.51	% (3)		2.62	%(3)		2.67	%(2)		3.36	%
Ratio of net investment       income (loss) to       average net assets       excluding expense       waiver			1.27	%(2)(3)		0.18	%(3)		- -0.07	%(3)		0.21	%(3)		- -0.86	%(3)		- -1.46	%(2)		- -1.29	%
Portfolio turnover rate			26	%		39	%		42	%		4	%		5	%		1	%		24	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

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

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	12.62		$	15.88		$	15.16		$	13.48		$	12.30		$	11.19		$	8.26
Income (loss) from       investment operations:
Net investment             income (loss)			0.09			0.05			0.03			0.08			(0.02	)		(0.01	)		(0.03	)
Net realized and             unrealized gain (loss)             on investments			(1.50	)		(1.92	)		1.46			2.14			1.20			1.12			2.96
Total from investment       operations			(1.41	)		(1.87	)		1.49			2.22			1.18			1.11			2.93
Less distributions from:
Net investment income			(0.00	)		(0.08	)		(0.02	)		(0.05	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(1.31	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(1.39	)		(0.77	)		(0.54	)		(0.00	)		(0.00	)		(0.00	)
Net asset value,       end of period		$	11.21		$	12.62		$	15.88		$	15.16		$	13.48		$	12.30		$	11.19
Total return		- -11.17		%	- -12.65		%		10.03	%		16.70	%		9.59	%		9.92	%		35.47	%
Net assets, end of period       (in millions)		$66			$99			$233			$211			$96			$24			$11
Ratio of expenses to       average net assets       including expense       waiver			2.43	%(1)		2.25	%		2.21	%		2.28	%		2.42	%		2.35	%(1)		2.93	%
Ratio of net investment       income (loss) to average       net assets including       expense waiver			1.52	%(1)		0.37	%		0.15	%		0.43	%		- -0.62	%		- -1.09	%(1)		- -0.83	%
Ratio of expenses to       average net assets       excluding expense       waiver			2.43	%(1)(2)		2.25	%(2)		2.21	%(2)		2.28	%(2)		2.42	%(2)		2.50	%(1)		3.10	%
Ratio of net investment       income (loss) to       average net assets       excluding expense       waiver			1.52	%(1)(2)		0.37	%(2)		0.15	%(2)		0.43	%(2)		- -0.62	%(2)		- -1.23	%(1)		- -1.00	%
Portfolio turnover rate			26	%		39	%		42	%		4	%		5	%		1	%		24	%

(1)Annualized.

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

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	12.93		$	16.23
Income (loss) from investment operations:
Net investment income			0.10			0.02	(2)
Net realized and unrealized loss on investments			(1.52	)		(1.87	)(2)
Total from investment operations			(1.42	)		(1.85	)
Less distributions from:
Net investment income			(0.00	)		(0.14	)
Capital gains			(0.00	)		(1.31	)
Total distributions			(0.00	)		(1.45	)
Net asset value, end of period		$	11.51		$	12.93
Total return(3)		- -10.98		%	- -12.31		%
Net assets, end of period (in thousands)		$395			$413
Ratio of expenses to average net assets including       expense waiver			2.19	%(4)		2.31	%(4)
Ratio of net investment income to average       net assets including expense waiver			1.60	%(4)		0.29	%(4)
Ratio of expenses to average net assets       excluding expense waiver			2.58	%(4)		2.31	%(4)(5)
Ratio of net investment income to average       net assets excluding expense waiver			1.21	%(4)		0.29	%(4)(5)
Portfolio turnover rate			26	%		39	%(6)

(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.

(6)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	13.11		$	16.29
Income (loss) from investment operations:
Net investment income			0.17			0.24	(2)
Net realized and unrealized loss on investments			(1.56	)		(1.87	)(2)
Total from investment operations			(1.39	)		(1.63	)
Less distributions from:
Net investment income			(0.00	)		(0.24	)
Capital gains			(0.00	)		(1.31	)
Total distributions			(0.00	)		(1.55	)
Net asset value, end of period		$	11.72		$	13.11
Total return		- -10.60		%	- -10.93		%
Net assets, end of period (in millions)		$1			$2
Ratio of expenses to average net assets			1.26	%(3)		1.21	%(3)
Ratio of net investment income to average net assets			2.62	%(3)		1.45	%(3)
Portfolio turnover rate			26	%		39	%(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, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	13.02		$	16.33		$	15.56		$	13.82		$	12.58		$	11.40		$	9.84
Income (loss) from      investment operations:
Net investment           income (loss)			0.17			0.25	(2)		0.19			0.19			0.07			(0.01	)		0.02
Net realized and           unrealized gain (loss)           on investments			(1.54	)		(2.01	)(2)		1.49			2.26			1.29			1.19			1.58
Total from investment      operations			(1.37	)		(1.76	)		1.68			2.45			1.36			1.18			1.60
Less distributions from:
Net investment income			(0.00	)		(0.24	)		(0.16	)		(0.22	)		(0.12	)		(0.00	)		(0.04	)
Capital gains			(0.00	)		(1.31	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(1.55	)		(0.91	)		(0.71	)		(0.12	)		(0.00	)		(0.04	)
Net asset value,      end of period		$	11.65		$	13.02		$	16.33		$	15.56		$	13.82		$	12.58		$	11.40
Total return		- -10.52		%	- -11.73		%		11.14	%		17.99	%		10.90	%		10.35	%		16.28	%
Net assets, end of period      (in millions)		$7			$8			$15			$17			$10			$2			$1
Ratio of expenses to      average net assets      including expense      waiver			1.20	%(3)		1.20	%		1.20	%		1.19	%		1.20	%		1.20	%(3)		1.76	%(3)
Ratio of net investment      income (loss) to      average net assets      including expense      waiver			2.69	%(3)		1.42	%		1.18	%		1.46	%		0.52	%		- -0.32	%(3)		0.55	%(3)
Ratio of expenses to      average net assets      excluding expense      waiver			1.52	%(3)		1.45	%		1.42	%		1.46	%		1.56	%		1.80	%(3)		2.09	%(3)
Ratio of net investment      income (loss) to      average net assets      excluding expense      waiver			2.37	%(3)		1.17	%		0.96	%		1.19	%		0.16	%		- -0.92	%(3)		0.22	%(3)
Portfolio turnover rate			26	%		39	%		42	%		4	%		5	%		1	%		24	%(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 Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	13.01		$	16.30		$	15.54		$	13.77		$	12.54		$	11.37		$	8.34
Income (loss) from      investment operations:
Net investment          income (loss)			0.17			0.25			0.21			0.22			0.04			(0.01	)		(0.01	)
Net realized and          unrealized gain (loss)          on investments			(1.54	)		(1.97	)		1.49			2.23			1.32			1.18			3.10
Total from investment      operations			(1.37	)		(1.72	)		1.70			2.45			1.36			1.17			3.09
Less distributions from:
Net investment          income			(0.00	)		(0.26	)		(0.19	)		(0.19	)		(0.13	)		(0.00	)		(0.06	)
Capital gains			(0.00	)		(1.31	)		(0.75	)		(0.49	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(1.57	)		(0.94	)		(0.68	)		(0.13	)		(0.00	)		(0.06	)
Net asset value,      end of period		$	11.64		$	13.01		$	16.30		$	15.54		$	13.77		$	12.54		$	11.37
Total return		- -10.53		%	- -11.54		%		11.33	%		18.09	%		10.86	%		10.29	%		37.11	%
Net assets, end of period      (in millions)		$2			$2			$3			$3			$3			$3			$3
Ratio of expenses to      average net assets      including expense      waiver			1.12	%(2)		1.05	%		1.05	%		1.12	%		1.23	%		1.26	%(2)		2.12	%
Ratio of net investment      income (loss) to average      net assets including      expense waiver			2.74	%(2)		1.62	%		1.31	%		1.57	%		0.41	%		- -0.17	%(2)		- -0.07	%
Ratio of expenses to      average net assets      excluding expense waiver			1.12	%(2)(3)		1.05	%(3)		1.05	%(3)		1.12	%(3)		1.23	%(3)		1.41	%(2)		2.28	%
Ratio of net investment      income (loss) to      average net assets      excluding      expense waiver			2.74	%(2)(3)		1.62	%(3)		1.31	%(3)		1.57	%(3)		0.41	%(3)		- -0.32	%(2)		- -0.23	%
Portfolio turnover rate			26	%		39	%		42	%		4	%		5	%		1	%		24	%

(1)Class is closed.

(2)Annualized.

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

See Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY EUROPEAN OPPORTUNITIES FUND

Portfolio Highlights

On September 30, 2008, Ivy European Opportunities Fund had net assets totaling $361,282
(in thousands) invested in a diversified portfolio of:

94.31%	Foreign Common Stocks
5.69%	Cash and Cash Equivalents

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

United Kingdom	$	28.01
France	$	16.45
Germany	$	12.58
Greece	$	8.79
Other Europe(1)	$	5.73
Cash and Cash Equivalents	$	5.69
Netherlands	$	5.57
Ireland	$	5.09
Luxembourg	$	4.22
Spain	$	3.32
Bahamas/Caribbean(2)	$	2.99
Other (3)	$	1.56

(1)Includes $1.78 Italy, $1.86 Norway and $2.09 Switzerland.

(2)Includes $1.40 British Virgin Islands and $1.59 Cayman Islands.

(3)Includes $1.56 Cyprus.

Sector Weightings

Financials Stocks	$	26.97
Consumer Discretionary Stocks	$	11.57
Telecommunication Services Stocks	$	11.02
Consumer Staples Stocks	$	10.63
Energy Stocks	$	10.59
Health Care Stocks	$	8.65
Materials Stocks	$	7.12
Cash and Cash Equivalents	$	5.69
Industrials Stocks	$	4.88
Utilities Stocks	$	2.88

The Investments of Ivy European Opportunities Fund
September 30, 2008
(In Thousands)                                                                                                                    (Unaudited)
COMMON STOCKS	Shares		Value
British Virgin Islands - 1.40%
Inmarsat plc (A)		577	$	5,045
Cayman Islands - 1.59%
Subsea 7 Inc. (A)(B)		425		5,747
Cyprus - 1.56%
Prosafe ASA (A)		668		3,656
Prosafe Production (A)(B)		827		1,972
				5,628
France - 16.45%
Altamir Amboise (A)		501		3,901
BNP Paribas (A)(B)		75		7,158
Carrefour S.A. (A)(B)		131		6,167
France Telecom (A)		454		12,738
Peugeot S.A. (A)		183		6,874
Sanofi-Aventis (A)		190		12,500
Societe Generale (A)		113		10,102
				59,440
Germany - 12.58%
Bayer Aktiengesellschaft (A)		137		10,068
Commerzbank Aktiengesellschaft (A)		483		7,442
Deutsche Borse AG (A)		47		4,377
Deutsche Postbank AG (A)		46		1,803
Deutsche Telekom AG, Registered Shares (A)		748		11,357
RWE Aktiengesellschaft (A)		108		10,386
				45,433
Greece - 8.79%
Alpha Bank (A)		428		9,326
Coca-Cola Hellenic Bottling Company S.A. (A)		155		3,389
National Bank of Greece S.A. (A)		301		12,177
OPAP S.A. (A)		223		6,851
				31,743
Ireland - 5.09%
CRH public limited company (A)		461		9,858
Grafton Group plc, Units (A)(B)		1,144		5,262
Paddy Power plc (A)(B)		189		3,278
				18,398
Italy - 1.78%
Eni S.p.A. (A)		138		3,651
UniCredit S.p.A. (A)		748		2,798
				6,449
Luxembourg - 4.22%
Acergy S.A. (A)(B)		500		5,055
SES GLOBAL S.A., Fiduciary Deposit Receipts (A)		493		10,203
				15,258
Netherlands - 5.57%
Akzo Nobel N.V. (A)		76		3,639
Heineken N.V. (A)		191		7,684
TNT N.V. (A)		317		8,784
				20,107
Norway - 1.86%
SeaDrill Limited (A)		325		6,724
Spain - 3.32%
Banco Bilbao Vizcaya Argentaria, S.A. (A)		503		8,134
Industria de Diseno Textil, S.A. (A)		91		3,865
				11,999
Switzerland - 2.09%
Novartis AG, Registered Shares (A)		143		7,551
United Kingdom - 28.01%
Ashtead Group plc (A)		2,963		3,566
Aurora Russia Limited (A)(B)		1,557		1,201
BP p.l.c. (A)		1,374		11,442
British Sky Broadcasting Group plc (A)		501		3,723
GlaxoSmithKline plc (A)		518		11,209
Imperial Tobacco Group PLC (A)		520		16,703
Lloyds TSB Group plc (A)		1,923		7,728
Man Group plc (A)		1,323		8,087
MAXjet Airways, Inc. (A)(B)(C)(D)		1,129		- -	*
MAXjet Airways, Inc. (A)(B)(D)		150		- -	*
Royal Bank of Scotland Group plc (The) (A)		4,094		13,206
tesco plc (A)		644		4,479
Vodafone Group Plc (A)		4,833		10,674
William Hill PLC (A)		1,660		7,001
Xstrata plc (A)		70		2,171
				101,190
TOTAL COMMON STOCKS - 94.31%			$	340,712
(Cost: $450,978)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Kimberly-Clark Worldwide Inc.,
2.050%, 10-16-08	$	4,000		3,997
Shell International Finance B.V. and Royal Dutch Shell plc       (Royal Dutch Shell plc),
2.100%, 10-9-08		4,000		3,998
Walgreen Co.,
1.000%, 10-1-08		3,063		3,063
TOTAL SHORT-TERM SECURITIES - 3.06%			$	11,058
(Cost: $11,058)
TOTAL INVESTMENT SECURITIES - 97.37%			$	351,770
(Cost: $462,036)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.63%				9,512
NET ASSETS - 100.00%			$	361,282

Notes to Schedule of Investments

*Not shown due to rounding as amount is less than 500.

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

(B)No dividends were paid during the preceding 12 months.

(C)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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $-* or 0.00% of net assets.

(D)Securities valued in good faith by the Valuation Committee appointed by the Board of Trustees.

Securities with an aggregate market value of $338,741, representing 93.76% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees.

Market Sector Diversification
(as a % of net assets)
Financials	26.97%
Consumer Discretionary	11.57%
Telecommunication Services	11.02%
Consumer Staples	10.63%
Energy	10.59%
Health Care	8.65%
Materials	7.12%
Industrials	4.88%
Utilities	2.88%
Other+	5.69%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY EUROPEAN OPPORTUNITIES FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (cost - $462,036)	$	351,770
Receivables:
Investment securities sold		18,150
Dividends and interest		1,641
Fund shares sold		504
Prepaid and other assets		46
Total assets		372,111
LIABILITIES
Payable for investment securities purchased		8,619
Payable to Fund shareholders		1,098
Accrued management fee		315
Due to custodian		302
Accrued shareholder servicing		207
Accrued distribution and service fees		129
Accrued accounting services fee		8
Accrued administrative fee		3
Other		148
Total liabilities		10,829
Total net assets	$	361,282
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	459,753
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		14,154
Accumulated net realized loss on investment transactions		(2,210	)
Net unrealized depreciation in value of investments	(110,415		)
Net assets applicable to outstanding units of capital	$	361,282
Net asset value per share (net assets divided by shares outstanding):
Class A	$25.68
Class B	$24.57
Class C	$24.70
Class E	$25.76
Class I	$25.82
Class Y	$25.75
Advisor Class	$26.02
Capital shares outstanding:
Class A		9,992
Class B		735
Class C		1,372
Class E		3
Class I		1,876
Class Y		118
Advisor Class		45

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY EUROPEAN OPPORTUNITIES FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                              (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $1,289)	$	18,604
Interest and amortization		225
Total income		18,829
Expenses:
Investment management fee		2,312
Shareholder servicing:
Class A		679
Class B		73
Class C		78
Class E		––	*
Class I		44
Class Y		4
Advisor Class		1
Distribution and service fees:
Class A		446
Class B		145
Class C		249
Class E		––	*
Class Y		5
Custodian fees		88
Accounting services fee		50
Administrative fee		25
Audit fees		23
Legal fees		3
Other		163
Total expenses		4,388
Net investment income		14,441
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS
Realized net loss on securities		(20,991	)
Realized net loss on foreign currency transactions		(230	)
Realized net loss on investments		(21,221	)
Unrealized depreciation in value of investments during the period		(124,231	)
Net loss on investments		(145,452	)
Net decrease in net assets resulting from operations	$	(131,011	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

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,
	2008				2008
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	14,441		$	7,608
Realized net gain (loss) on investments			(21,221	)		65,885
Unrealized depreciation		(124,231		)	(105,031		)
Net decrease in net assets resulting from operations		(131,011		)		(31,538	)
Distributions to shareholders from:(1)
Net investment income:
Class A			(––	)		(5,178	)
Class B			(––	)		(201	)
Class C			(––	)		(324	)
Class E			(––	)		(1	)
Class I			(––	)		(656	)
Class Y			(––	)		(73	)
Advisor Class			(––	)		(34	)
Realized gains on investment transactions:
Class A			(––	)		(41,414	)
Class B			(––	)		(5,059	)
Class C			(––	)		(6,646	)
Class E			(––	)		(10	)
Class I			(––	)		(3,916	)
Class Y			(––	)		(521	)
Advisor Class			(—	)		(201	)
			(—	)		(64,234	)
Capital share transactions			(50,418	)		123,754
Total increase (decrease)		(181,429		)		27,982
NET ASSETS
Beginning of period			542,711			514,729
End of period		$	361,282		$	542,711
Accumulated undistributed net investment income (loss)		$	14,154		$	(57	)

(1)See "Financial Highlights" on pages 105 - 111.

See Accompanying Notes to Financial Statements.

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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	34.70		$	40.58		$	33.58		$	28.31		$	22.30		$	19.89		$	13.20
Income (loss)      from investment      operations:
Net investment           income (loss)			1.05			0.60			0.31			0.10			(0.03	)		(0.03	)		0.02
Net realized and           unrealized gain           (loss) on           investments		(10.07		)		(1.98	)		7.11			5.37			6.05			2.44			6.71
Total from investment      operations			(9.02	)		(1.38	)		7.42			5.47			6.02			2.41			6.73
Less distributions from:
Net investment           income			(0.00	)		(0.50	)		(0.42	)		(0.20	)		(0.01	)		(0.00	)		(0.04	)
Capital gains			(0.00	)		(4.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(4.50	)		(0.42	)		(0.20	)		(0.01	)		(0.00	)		(0.04	)
Net asset value,      end of period		$	25.68		$	34.70		$	40.58		$	33.58		$	28.31		$	22.30		$	19.89
Total return(1)		- -26.00		%	-4.52		%		22.17	%		19.41	%		27.02	%		12.12	%		51.02	%
Net assets, end of period      (in millions)		$257			$390			$389			$235			$170			$79			$38
Ratio of expenses to      average net assets			1.70	%(2)		1.58	%		1.64	%		1.72	%		1.79	%		1.72	%(2)		2.26	%
Ratio of net investment      income (loss) to      average net assets			5.87	%(2)		1.43	%		0.91	%		0.35	%		- -0.07	%		- -0.61	%(2)		0.18	%
Portfolio turnover rate			47	%		65	%		42	%		62	%		63	%		31	%		123	%

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

(2)Annualized.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	33.35		$	39.14		$	32.40		$	27.32		$	21.66		$	19.36		$	12.93
Income (loss) from      investment operations:
Net investment           income (loss)			0.85	(1)		0.27	(1)		0.09			(0.11	)		(0.17	)		(0.09	)		(0.07	)
Net realized and           unrealized gain (loss)           on investments			(9.63	)(1)		(1.90	)(1)		6.78			5.19			5.83			2.39			6.50
Total from investment      operations			(8.78	)		(1.63	)		6.87			5.08			5.66			2.30			6.43
Less distributions from:
Net investment income			(0.00	)		(0.16	)		(0.13	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(4.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(4.16	)		(0.13	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net asset value,      end of period		$	24.57		$	33.35		$	39.14		$	32.40		$	27.32		$	21.66		$	19.36
Total return		- -26.33		%		- -5.27	%		21.24	%		18.59	%		26.13	%		11.88	%		49.73	%
Net assets, end of period      (in millions)		$18			$37			$52			$44			$40			$32			$29
Ratio of expenses to      average net assets			2.59	%(2)		2.35	%		2.40	%		2.45	%		2.53	%		2.58	%(2)		3.00	%
Ratio of net investment      income (loss) to average      net assets			5.30	%(2)		0.68	%		0.27	%		- -0.30	%		- -0.73	%		- -1.57	%(2)		- -0.47	%
Portfolio turnover rate			47	%		65	%		42	%		62	%		63	%		31	%		123	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	33.49		$	39.28		$	32.52		$	27.42		$	21.74		$	19.43		$	12.98
Income (loss)      from investment      operations:
Net investment           income (loss)			0.94			0.32			0.12			(0.09	)		(0.14	)		(0.08	)		(0.07	)
Net realized and           unrealized gain           (loss) on           investments			(9.73	)		(1.91	)		6.81			5.19			5.82			2.39			6.52
Total from investment      operations			(8.79	)		(1.59	)		6.93			5.10			5.68			2.31			6.45
Less distributions from:
Net investment income			(0.00	)		(0.20	)		(0.17	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(4.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(4.20	)		(0.17	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net asset value,      end of period		$	24.70		$	33.49		$	39.28		$	32.52		$	27.42		$	21.74		$	19.43
Total return		- -26.25		%		- -5.16	%		21.33	%		18.60	%		26.13	%		11.89	%		49.69	%
Net assets, end of period      (in millions)		$34			$57			$65			$51			$45			$27			$23
Ratio of expenses to      average net assets			2.37	%(1)		2.26	%		2.32	%		2.42	%		2.51	%		2.56	%(1)		2.98	%
Ratio of net investment      income (loss) to      average net assets			5.26	%(1)		0.78	%		0.32	%		- -0.29	%		- -0.79	%		- -1.54	%(1)		- -0.43	%
Portfolio turnover rate			47	%		65	%		42	%		62	%		63	%		31	%		123	%

(1)Annualized.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	34.73		$	40.69
Income (loss) from investment operations:
Net investment income			1.00			0.73
Net realized and unrealized loss on investments			(9.97	)		(2.11	)
Total from investment operations			(8.97	)		(1.38	)
Less distributions from:
Net investment income			(0.00	)		(0.58	)
Capital gains			(0.00	)		(4.00	)
Total distributions			(0.00	)		(4.58	)
Net asset value, end of period		$	25.76		$	34.73
Total return(3)		- -25.83		%	-4.52		%
Net assets, end of period (in thousands)		$71			$95
Ratio of expenses to average net assets			1.32	%(4)		1.28	%(4)
Ratio of net investment income to average net assets			6.01	%(4)		1.78	%(4)
Portfolio turnover rate			47	%		65	%(5)

(1)Class is closed.

(2)Commencement of operations of the class.

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

(4)Annualized.

(5)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				03-31-08
Net asset value, beginning of period		$	34.80		$	40.73
Income (loss) from investment operations:
Net investment income			0.99	(2)		0.35	(2)
Net realized and unrealized loss on investments			(9.97	)(2)		(1.61	)(2)
Total from investment operations			(8.98	)		(1.26	)
Less distributions from:
Net investment income			(0.00	)		(0.67	)
Capital gains			(0.00	)		(4.00	)
Total distributions			(0.00	)		(4.67	)
Net asset value, end of period		$	25.82		$	34.80
Total return		- -25.80		%	-4.24		%
Net assets, end of period (in millions)		$48			$53
Ratio of expenses to average net assets			1.18	%(3)		1.17	%(3)
Ratio of net investment income to average net assets			5.93	%(3)		1.44	%(3)
Portfolio turnover rate			47	%		65	%(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, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	34.75		$	40.61		$	33.60		$	28.33		$	22.30		$	19.89		$	14.88
Income (loss)      from investment      operations:
Net investment           income (loss)			1.07			0.61			0.44			0.18			0.09			(0.02	)		(0.04	)
Net realized and           unrealized gain           (loss) on           investments		(10.07		)		(1.91	)		7.05			5.34			6.00			2.43			5.12
Total from investment      operations			(9.00	)		(1.30	)		7.49			5.52			6.09			2.41			5.08
Less distributions from:
Net investment           income			(0.00	)		(0.56	)		(0.48	)		(0.25	)		(0.06	)		(0.00	)		(0.07	)
Capital gains			(0.00	)		(4.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(4.56	)		(0.48	)		(0.25	)		(0.06	)		(0.00	)		(0.07	)
Net asset value,      end of period		$	25.75		$	34.75		$	40.61		$	33.60		$	28.33		$	22.30		$	19.89
Total return		- -25.90		%	-4.33		%		22.38	%		19.60	%		27.32	%		12.12	%		34.14	%
Net assets, end of period      (in millions)		$3			$4			$7			$4			$4			$4			$3
Ratio of expenses to      average net assets			1.46	%(2)		1.41	%		1.44	%		1.55	%		1.61	%		1.75	%(2)		1.51	%(2)
Ratio of net investment      income (loss) to      average net assets			6.05	%(2)		1.60	%		1.14	%		0.60	%		0.53	%		- -0.71	%(2)		- -0.58	%(2)
Portfolio turnover rate			47	%		65	%		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 Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,      beginning of period		$	35.07		$	40.96		$	33.88		$	28.55		$	22.48		$	20.03		$	13.34
Income (loss) from      investment operations:
Net investment           income (loss)			1.38			0.92			0.94		0.35		(2)		0.21			(0.01	)		0.24
Net realized and           unrealized gain           (loss) on           investments		(10.43		)		(2.13	)		6.73			5.32	(2)		5.99			2.46			6.58
Total from investment      operations			(9.05	)		(1.21	)		7.67			5.67			6.20			2.45			6.82
Less distributions from:
Net investment           income			(0.00	)		(0.68	)		(0.59	)		(0.34	)		(0.13	)		(0.00	)		(0.13	)
Capital gains			(0.00	)		(4.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(4.68	)		(0.59	)		(0.34	)		(0.13	)		(0.00	)		(0.13	)
Net asset value,      end of period		$	26.02		$	35.07		$	40.96		$	33.88		$	28.55		$	22.48		$	20.03
Total return		- -25.81		%		-4.12	%		22.76	%		20.00	%		27.64	%		12.23	%		51.12	%
Net assets, end of period      (in millions)		$1			$2			$2			$2			$4			$4			$4
Ratio of expenses to      average net assets			1.24	%(3)		1.15	%		1.19	%		1.25	%		1.36	%		1.41	%(3)		1.96	%
Ratio of net investment      income (loss) to      average net assets			6.17	%(3)		1.94	%		1.60	%		1.13	%		0.51	%		- -0.41	%(3)		1.02	%
Portfolio turnover rate			47	%		65	%		42	%		62	%		63	%		31	%		123	%

(1)Class is closed.

(2)Based on average shares outstanding.

(3)Annualized.

See Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY INTERNATIONAL BALANCED FUND

Portfolio Highlights

On September 30, 2008, Ivy International Balanced Fund had net assets totaling $298,497 (in thousands) invested in a diversified portfolio of:

65.29%	Foreign Common Stocks
33.29%	Other Government Securities
1.42%	Cash and Cash Equivalents

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:

Country Weightings

Europe	$	68.92
United Kingdom	$	16.78
Germany	$	14.92
France	$	10.83
Other Europe(1)	$	6.01
Switzerland	$	5.70
Sweden	$	4.76
Netherlands	$	4.35
Poland	$	3.53
Norway	$	2.04
Pacific Basin	$	24.57
Japan	$	5.98
South Korea	$	5.45
Taiwan	$	4.90
Singapore	$	3.20
Malaysia	$	2.54
Other Pacific Basin(2)	$	2.50
North America(3)	$	3.52
Other(4)	$	1.57
Cash and Cash Equivalents	$	1.42

(1)Includes $0.76 Austria, $0.68 Belgium, $1.18 Finland, $0.37 Greece, $1.94 Italy and $1.08 Spain.

(2)Includes $1.50 Australia, $0.30 China, $0.61 Hong Kong and $0.09 New Zealand.

(3)Includes $0.51 Canada and $3.01 Mexico.

(4)Includes $1.03 Israel and $0.54 Supranational.

Sector Weightings

Other Government Securities	$	33.29
Financials Stocks	$	13.40
Consumer Discretionary Stocks	$	12.81
Information Technology Stocks	$	9.52
Telecommunication Stocks	$	8.87
Industrials Stocks	$	6.67
Health Care Stocks	$	6.46
Energy Stocks	$	4.20
Miscellaneous Stocks(1)	$	3.36
Cash and Cash Equivalents	$	1.42

(1)$1.95 Consumer Staples Stocks and $1.41 Materials Stocks.

Quality Weightings

On September 30, 2008, the breakdown of bonds (by ratings) held by the Fund was as follows:

Common Stocks	65.29	%
Investment Grade
AAA	20.18	%
AA	0.10	%
A	13.01	%
Cash and Cash Equivalents	1.42	%

Ratings reflected in the wheel are taken from Standard & Poor's and Moody's.

The Investments of Ivy International Balanced Fund
September 30, 2008
(In Thousands)                                                                                                                       (Unaudited)
COMMON STOCKS	Shares		Value
Austria - 0.76%
Telekom Austria Aktiengesellschaft (A)		129	$	2,267
Belgium - 0.68%
Belgacom SA (A)		54		2,023
Canada - 0.47%
Biovail Corporation (A)		149		1,418
China - 0.30%
China Telecom Corporation Limited (A)(B)		360		148
China Telecom Corporation Limited (A)	1,848			758
				906
Finland - 1.18%
Stora Enso Oyj, Class R (A)		105		1,025
UPM-Kymmene Corporation (A)		160		2,504
				3,529
France - 7.58%
AXA S.A. (A)		110		3,587
France Telecom (A)		221		6,191
Sanofi-Aventis (A)(C)		22		1,420
Sanofi-Aventis (A)		79		5,223
THOMSON (A)(D)		366		1,307
TOTAL S.A. (A)		53		3,191
Vivendi Universal (A)		55		1,714
				22,633
Germany - 5.32%
Bayerische Motoren Werke Aktiengesellschaft (A)		69		2,686
Deutsche Post AG (A)		70		1,474
Infineon Technologies AG (A)(D)		355		1,989
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft,       Registered Shares (A)		17		2,604
SAP Aktiengesellschaft (A)		73		3,885
Siemens AG (A)		34		3,237
				15,875
Hong Kong - 0.61%
Hutchison Whampoa Limited, Ordinary Shares (A)		239		1,836
Israel - 1.03%
Check Point Software Technologies Ltd. (D)		136		3,080
Italy - 1.94%
AUTOGRILL S.p.A. (A)		147		1,671
Eni S.p.A. (A)		84		2,223
UniCredit S.p.A. (A)		506		1,892
				5,786
Japan - 5.98%
AIFUL Corporation (A)		54		419
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)		321		2,799
NGK SPARK PLUG CO., LTD. (A)		207		2,015
Olympus Corporation (A)(D)		99		2,894
Promise Co., Ltd. (A)		46		894
Sony Corporation (A)		62		1,897
Toyota Motor Corporation (A)		79		3,390
USS Co., Ltd. (A)		55		3,528
				17,836
Netherlands - 3.39%
ING Groep N.V., Certicaaten Van Aandelen (A)		228		4,886
Koninklijke Philips Electronics N.V., Ordinary Shares (A)		40		1,098
Randstad Holding nv (A)(D)		67		1,761
Reed Elsevier NV (A)		159		2,362
				10,107
Norway - 1.64%
Aker Solutions ASA (A)		99		1,595
Norske Skogindustrier ASA (A)(D)		163		675
Telenor ASA (A)		211		2,629
				4,899
Singapore - 2.02%
DBS Group Holdings Ltd (A)		79		942
Flextronics International Ltd. (D)		418		2,964
Singapore Telecommunications Limited (A)		931		2,128
				6,034
South Korea - 1.90%
Kookmin Bank, ADR		20		902
Samsung Electronics Co., Ltd. (A)		8		3,865
Samsung Electronics Co., Ltd., GDR (B)		4		896
				5,663
Spain - 1.08%
Telefonica, S.A., ADR		45		3,199
Telefonica, S.A., Brazilian Depositary Receipts (A)		1		14
				3,213
Sweden - 2.03%
Niscayah Group AB (A)		968		1,378
Securitas AB, Class B (A)		105		1,186
Telefonaktiebolaget LM Ericsson, B Shares (A)		367		3,484
				6,048
Switzerland - 5.70%
ACE Limited		46		2,517
Adecco S.A. (A)		93		4,033
Nestle S.A., Registered Shares (A)		64		2,750
Novartis AG, Registered Shares (A)		76		4,013
Swiss Reinsurance Company, Registered Shares (A)		40		2,245
UBS AG (A)(D)		85		1,457
				17,015
Taiwan - 4.90%
Chunghwa Telecom Co., Ltd., ADR (D)		138		3,267
Compal Electronics Inc., GDR (B)(D)		135		483
Compal Electronics Inc., GDR (D)		55		198
Lite-On Technology Corporation (A)	1,734			1,515
Lite-On Technology Corporation, GDR (A)		261		2,207
Mega Financial Holding Company (A)	6,790			3,114
Taiwan Semiconductor Manufacturing Company Ltd. (A)	2,293			3,844
				14,628
United Kingdom - 16.78%
Aviva plc (A)		297		2,580
BAE Systems plc (A)		93		688
BP p.l.c. (A)		424		3,535
British Sky Broadcasting Group plc (A)		231		1,718
Compass Group PLC (A)		561		3,479
GlaxoSmithKline plc (A)		199		4,317
Group 4 Securicor plc (A)		898		3,246
HBOS plc (A)		156		355
HSBC Holdings plc (A)		191		3,084
Kingfisher plc (A)	1,775			4,230
Marks and Spencer Group plc (A)(D)		263		960
Old Mutual plc (A)	1,974			2,763
Pearson plc (A)		168		1,816
Persimmon plc (A)		601		4,373
Premier Brands Foods plc (A)		416		559
Rentokil Initial plc (A)		851		1,055
Royal Bank of Scotland Group plc (The) (A)		921		2,970
Royal Dutch Shell plc, Class B (A)		71		2,001
tesco plc (A)		158		1,098
Unilever PLC (A)		52		1,416
Vodafone Group Plc (A)	1,679			3,707
Vodafone Group Plc, ADR		7		146
				50,096
TOTAL COMMON STOCKS - 65.29%			$	194,892
(Cost: $243,816)

OTHER GOVERNMENT SECURITIES		Principal
Australia - 1.50%
New South Wales Treasury Corporation,
6.000%, 5-1-12 (E)	AUD4,600		3,647
Queensland Treasury Corporation,
6.000%, 7-14-09 (E)	1,050		829
			4,476
Canada - 0.04%
Province of Ontario,
6.250%, 6-16-15 (E)	NZD189		123
France - 3.25%
French Treasury Bond (OAT),
4.250%, 10-25-17 (E)	EUR6,920		9,695

Germany - 9.60%
KfW, Frankfurt/Main, Federal Republic of Germany:
2.000%, 2-27-09 (E)	CHF3,100			2,748
3.000%, 12-  4-09 (E)		3,100		2,757
0.688%, 8-8-11 (E)(F)	JPY2,410,000			22,662
6.500%, 11-15-11 (E)	NZD739			494
				28,661
Greece - 0.37%
Hellenic Republic Government Bonds,
2.125%, 4-10-09 (E)	CHF1,250			1,106
Malaysia - 2.54%
Malaysian Government Bonds:
7.000%, 3-15-09 (E)	MYR580			171
3.756%, 4-28-11 (E)		8,550		2,472
3.461%, 7-31-13 (E)	12,435			3,515
3.814%, 2-15-17 (E)		1,955		537
4.240%, 2-7-18 (E)		3,110		881
				7,576
Mexico - 3.01%
United Mexican States Government Bonds:
8.000%, 12-19-13 (E)	MXN34,000			3,058
7.250%, 12-15-16 (E)	35,000			2,981
10.000%, 12-5-24 (E)	28,500			2,958
				8,997
Netherlands - 0.96%
Netherlands Government Bonds,
4.500%, 7-15-17 (E)	EUR2,000			2,857
New Zealand - 0.09%
New Zealand Government Bonds,
6.000%, 11-15-11 (E)	NZD410			274
Norway - 0.40%
Norway Government Bonds,
5.500%, 5-15-09 (E)	NOK6,980			1,184
Poland - 3.53%
Poland Government Bonds:
6.000%, 5-24-09 (E)	PLN9,425			3,892
6.250%, 10-24-15 (E)		3,250		1,372
5.750%, 9-23-22 (E)	12,770			5,282
				10,546
Singapore - 1.18%
Singapore Government Bonds,
4.375%, 1-15-09 (E)	SGD5,000			3,506
South Korea - 3.55%
South Korea Treasury Bonds:
4.750%, 6-10-09 (E)	KRW1,100,000			907
5.250%, 9-10-12 (E)	4,100,000			3,338
5.500%, 9-10-17 (E)	4,000,000			3,237
5.250%, 3-10-27 (E)	4,053,000			3,126
				10,608
Supranational - 0.54%
European Investment Bank:
0.685%, 9-21-11 (E)(F)	JPY110,000			1,034
6.500%, 9-10-14 (E)	NZD861			575
				1,609
Sweden - 2.73%
Sweden Government Bonds:
5.000%, 1-28-09 (E)	SEK53,050			7,676
4.000%, 12-1-09 (E)		1,970		285
Swedish Export Credit Corporation,
7.625%, 6-30-14 (E)	NZD255			179
				8,140
TOTAL OTHER GOVERNMENT SECURITIES - 33.29%			$	99,358
(Cost: $102,809)
SHORT-TERM SECURITIES
Commercial Paper
Automatic Data Processing Inc.,
2.000%, 10-1-08		$1,374		1,374
TOTAL SHORT-TERM SECURITIES - 0.46%			$	1,374
(Cost: $1,374)
TOTAL INVESTMENT SECURITIES - 99.04%			$	295,624
(Cost: $347,999)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.96%				2,873
NET ASSETS - 100.00%			$	298,497

Notes to Schedule of Investments
The following forward currency contracts were outstanding at September 30, 2008:
	Type	Currency	Currency Amount Covered by Contract	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
	Sell	Euro	416	9-23-09		$	4		$	––
	Sell	Euro	926	9-30-09			35			––
	Sell	Mexican Peso	105,500	2-11-09			––			121
	Sell	South Korean Won	9,182,050	2-13-09			2,000			––
	Sell	South Korean Won	521,950	2-25-09			115			––
	Sell	South Korean Won	521,021	2-27-09			116			––
	Sell	South Korean Won	518,210	3-  4-09			118			––
	Sell	South Korean Won	1,100,000	3-27-09			206			––
	Sell	South Korean Won	430,416	4-1-09			82			––
	Sell	South Korean Won	550,000	4-6-09			106			––
	Buy	Swedish Krona	124,600	11-12-08			––			899
	Buy	Swedish Krona	4,000	9-23-09			––			15
	Buy	Swiss Franc	7,723	2-11-09			––			65
	Buy	Swiss Franc	1,136	3-27-09			––			102
	Buy	Swiss Franc	445	4-1-09			––			40
	Buy	Swiss Franc	571	4-6-09			––			52
						$	2,782		$	1,294

(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, 2008, the total value of these securities amounted to $1,527 or 0.51% of net assets.

(C)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, 2008, the total value of this security amounted to $1,420 or 0.48% of net assets.

(D)No dividends were paid during the preceding 12 months.

(E)Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, CHF - Swiss Franc, EUR - Euro, JPY - Japanese Yen, KRW - South Korean Won, MXN - Mexican Peso, MYR - Malaysian Ringgit, NOK - Norwegian Krone, NZD - New Zealand Dollar, PLN - Polish Zloty, SEK - Swedish Krona and SGD - Singapore Dollar)

(F)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

Securities with an aggregate market value of $173,602 representing 58.16% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees.

The following acronyms are used throughout this portfolio:
ADR = American Depositary Receipts
GDR = Global Depositary Receipts

	Market Sector Diversification
	(as a % of net assets)
	Other Government Securities	33.29%
	Financials	13.40%
	Consumer Discretionary	12.81%
	Information Technology	9.52%
	Telecommunication Services	8.87%
	Industrials	6.67%
	Health Care	6.46%
	Energy	4.20%
	Consumer Staples	1.95%
	Materials	1.41%
	Other+	1.42%
	+Includes cash and cash equivalents and other assets and liabilities
See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY INTERNATIONAL BALANCED FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                           (Unaudited)

ASSETS
Investment securities - at value (cost - $347,999)	$	295,624
Unrealized appreciation on forward currency contracts		2,782
Receivables:
Dividends and interest		2,739
Fund shares sold		494
Prepaid and other assets		36
Total assets		301,675
LIABILITIES
Unrealized depreciation on forward currency contracts		1,294
Payable to Fund shareholders		893
Due to custodian		289
Payable for investment securities purchased		218
Accrued management fee		187
Accrued shareholder servicing		112
Accrued distribution and service fees		91
Accrued accounting services fee		10
Other		84
Total liabilities		3,178
Total net assets	$	298,497
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	337,612
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		3,153
Accumulated undistributed net realized gain on investment transactions		8,784
Net unrealized depreciation in value of investments		(51,052	)
Net assets applicable to outstanding units of capital	$	298,497
Net asset value per share (net assets divided by shares outstanding):
Class A	$13.45
Class B	$13.41
Class C	$13.41
Class E	$13.43
Class I	$13.47
Class Y	$13.46
Capital shares outstanding:
Class A		14,986
Class B		781
Class C		2,556
Class E		68
Class I		3,647
Class Y		156

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY INTERNATIONAL BALANCED FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                               (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $792)	$	5,855
Interest and amortization (net of foreign withholding taxes of $98)		2,293
Total income		8,148
Expenses:
Investment management fee		1,274
Distribution and service fees:
Class A		315
Class B		66
Class C		211
Class E		1
Class Y		4
Shareholder servicing:
Class A		348
Class B		30
Class C		50
Class E		5
Class I		39
Class Y		3
Custodian fees		74
Accounting services fee		65
Audit fees		21
Legal fees		3
Other		114
Total		2,623
Less expenses in excess of limit		(2	)
Total expenses		2,621
Net investment income		5,527
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized net gain on securities		2,965
Realized net gain on foreign currency transactions		1,306
Realized net gain on investments		4,271
Unrealized depreciation in value of securities during the period		(69,686	)
Unrealized depreciation in value of forward currency contracts during the period		(1,334	)
Unrealized depreciation in value of investments during the period		(71,020	)
Net loss on investments		(66,749	)
Net decrease in net assets resulting from operations	$	(61,222	)

See Accompanying 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,
	2008				2008
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	5,527		$	6,571
Realized net gain on investments			4,271			17,757
Unrealized depreciation			(71,020	)		(18,023	)
Net increase (decrease) in net assets                       resulting from operations			(61,222	)		6,305
Distributions to shareholders from:(1)
Net investment income:
Class A			(5,167	)		(8,021	)
Class B			(229	)		(300	)
Class C			(744	)		(979	)
Class E			(17	)		(12	)
Class I			(1,154	)		(888	)
Class Y			(55	)		(66	)
Realized gains on investment transactions:
Class A			(––	)		(6,161	)
Class B			(––	)		(324	)
Class C			(––	)		(1,037	)
Class E			(––	)		(13	)
Class I			(––	)		(766	)
Class Y			(—	)		(51	)
			(7,366	)		(18,618	)
Capital share transactions			2,418			98,036
Total increase (decrease)			(66,170	)		85,723
NET ASSETS
Beginning of period			364,667			278,944
End of period		$	298,497		$	364,667
Accumulated undistributed net investment income		$	3,153		$	3,686

(1)See "Financial Highlights" on pages 125 - 130.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				9-30-03
Net asset value,      beginning of period		$	16.36		$	16.81		$	15.15		$	14.63		$	13.07		$	11.33		$	8.72
Income (loss) from      investment operations:
Net investment income			0.25			0.37			0.24	(1)		0.29			0.22			0.09			0.21
Net realized and           unrealized gain           (loss) on           investments			(2.84	)		0.14			2.36	(1)		1.14			1.69			1.83			2.40
Total from investment      operations			(2.59	)		0.51			2.60			1.43			1.91			1.92			2.61
Less distributions from:
Net investment income			(0.32	)		(0.55	)		(0.43	)		(0.36	)		(0.28	)		(0.18	)		(0.00	)
Capital gains			(0.00	)		(0.41	)		(0.51	)		(0.55	)		(0.07	)		(0.00	)		(0.00	)
Total distributions			(0.32	)		(0.96	)		(0.94	)		(0.91	)		(0.35	)		(0.18	)		(0.00	)
Net asset value,      end of period		$	13.45		$	16.36		$	16.81		$	15.15		$	14.63		$	13.07		$	11.33
Total return(2)		- -16.06		%		2.84	%		17.48	%		10.14	%		14.81	%		17.05	%		29.93	%
Net assets, end of period      (in millions)		$202			$260			$235			$112			$97			$60			$46
Ratio of expenses to      average net assets      including expense      waiver			1.38	%(3)		1.33	%		1.38	%		1.45	%		1.42	%		1.54	%(3)(4)		1.67	%
Ratio of net investment      income to average      net assets including      expense waiver			3.11	%(3)		2.11	%		1.52	%		1.94	%		1.71	%		1.43	%(3)(4)		2.06	%
Ratio of expenses to      average net assets      excluding expense      waiver			1.38	%(3)(5)		1.33	%(5)		1.38	%(5)		1.45	%(5)		1.42	%(5)		1.60	%(3)(4)		1.71	%
Ratio of net investment      income to average      net assets excluding      expense waiver			3.11	%(3)(5)		2.11	%(5)		1.52	%(5)		1.94	%(5)		1.71	%(5)		1.37	%(3)(4)		2.02	%
Portfolio turnover rate			9	%		24	%		22	%		27	%		16	%		15	%		39	%

(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 Accompanying 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
	9-30-08					2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	16.31			$	16.77		$	15.11		$	14.59		$	13.04		$	12.34
Income (loss) from      investment operations:
Net investment income			0.14				0.20			0.07	(2)		0.08			0.03	(2)		0.19
Net realized and unrealized           gain (loss) on investments			(2.79	)			0.14			2.37	(2)		1.18			1.70	(2)		0.69
Total from investment      operations			(2.65	)			0.34			2.44			1.26			1.73			0.88
Less distributions from:
Net investment income			(0.25	)			(0.39	)		(0.27	)		(0.19	)		(0.11	)		(0.18	)
Capital gains			(0.00	)			(0.41	)		(0.51	)		(0.55	)		(0.07	)		(0.00	)
Total distributions			(0.25	)			(0.80	)		(0.78	)		(0.74	)		(0.18	)		(0.18	)
Net asset value, end of period		$	13.41			$	16.31		$	16.77		$	15.11		$	14.59		$	13.04
Total return		- -16.42		%			1.85	%		16.38	%		8.93	%		13.37	%		7.18	%
Net assets, end of period      (in thousands)	$10,478				$13,152			$12,056				$5,548			$3,049			$225
Ratio of expenses to      average net assets			2.33	%(3)			2.28	%		2.35	%		2.59	%		2.64	%		3.01	%(3)
Ratio of net investment income      to average net assets			2.17	%(3)			1.15	%		0.46	%		0.73	%		0.20	%		1.09	%(3)
Portfolio turnover rate			9	%			24	%		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 Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	16.33		$	16.78		$	15.12		$	14.60		$	13.04		$	12.34
Income (loss) from      investment operations:
Net investment income			0.18			0.24			0.11	(2)		0.11			0.07	(2)		0.19
Net realized and unrealized           gain (loss) on investments			(2.83	)		0.15			2.37	(2)		1.19			1.69	(2)		0.69
Total from investment      operations			(2.65	)		0.39			2.48			1.30			1.76			0.88
Less distributions from:
Net investment income			(0.27	)		(0.43	)		(0.31	)		(0.23	)		(0.13	)		(0.18	)
Capital gains			(0.00	)		(0.41	)		(0.51	)		(0.55	)		(0.07	)		(0.00	)
Total distributions			(0.27	)		(0.84	)		(0.82	)		(0.78	)		(0.20	)		(0.18	)
Net asset value, end of period		$	13.41		$	16.33		$	16.78		$	15.12		$	14.60		$	13.04
Total return		- -16.42		%		2.14	%		16.64	%		9.21	%		13.58	%		7.18	%
Net assets, end of period      (in thousands)	$34,284			$42,246			$29,921				$9,422			$3,968			$307
Ratio of expenses to      average net assets			2.09	%(3)		2.04	%		2.12	%		2.29	%		2.44	%		2.86	%(3)
Ratio of net investment income      to average net assets			2.39	%(3)		1.34	%		0.70	%		0.98	%		0.44	%		1.13	%(3)
Portfolio turnover rate			9	%		24	%		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 Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	16.33		$	16.85
Income (loss) from investment operations:
Net investment income			0.20	(2)		0.17	(2)
Net realized and unrealized gain (loss) on investments			(2.82	)(2)		0.18	(2)
Total from investment operations			(2.62	)		0.35
Less distributions from:
Net investment income			(0.28	)		(0.46	)
Capital gains			(0.00	)		(0.41	)
Total distributions			(0.28	)		(0.87	)
Net asset value, end of period		$	13.43		$	16.33
Total return (3)		- -16.25		%		1.92	%
Net assets, end of period (in millions)		$1			$1
Ratio of expenses to average net assets       including expense waiver			1.87	%(4)		2.23	%(4)
Ratio of net investment income to average       net assets including expense waiver			2.54	%(4)		1.00	%(4)
Ratio of expenses to average net assets       excluding expense waiver			2.24	%(4)		2.23	%(4)(5)
Ratio of net investment income to average       net assets excluding expense waiver			2.17	%(4)		1.00	%(4)(5)
Portfolio turnover rate			9	%		24	%(6)

(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.

(6)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	16.38		$	16.86
Income (loss) from investment operations:
Net investment income			0.26	(2)		0.30	(2)
Net realized and unrealized gain (loss) on investments			(2.82	)(2)		0.23	(2)
Total from investment operations			(2.56	)		0.53
Less distributions from:
Net investment income			(0.35	)		(0.60	)
Capital gains			(0.00	)		(0.41	)
Total distributions			(0.35	)		(1.01	)
Net asset value, end of period		$	13.47		$	16.38
Total return		- -15.88		%		2.99	%
Net assets, end of period (in millions)		$49			$45
Ratio of expenses to average net assets			0.98	%(3)		0.98	%(3)
Ratio of net investment income to average net assets			3.43	%(3)		2.14	%(3)
Portfolio turnover rate			9	%		24	%(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, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	16.38		$	16.82		$	15.15		$	14.63		$	13.07		$	12.34
Income (loss) from      investment operations:
Net investment income			0.34			0.39			0.25	(2)		0.29	(2)		0.24	(2)		0.21
Net realized and           unrealized gain (loss)           on investments			(2.94	)		0.14			2.37	(2)		1.14	(2)		1.67	(2)		0.70
Total from investment      operations			(2.60	)		0.53			2.62			1.43			1.91			0.91
Less distributions from:
Net investment income			(0.32	)		(0.56	)		(0.44	)		(0.36	)		(0.28	)		(0.18	)
Capital gains			(0.00	)		(0.41	)		(0.51	)		(0.55	)		(0.07	)		(0.00	)
Total distributions			(0.32	)		(0.97	)		(0.95	)		(0.91	)		(0.35	)		(0.18	)
Net asset value, end of period		$	13.46		$	16.38		$	16.82		$	15.15		$	14.63		$	13.07
Total return		- -16.07		%		2.96	%		17.61	%		10.18	%		14.84	%		7.47	%
Net assets, end of period      (in thousands)		$2,102			$3,433			$1,665			$662			$397			$185
Ratio of expenses to      average net assets			1.30	%(3)		1.26	%		1.24	%		1.41	%		1.40	%		1.79	%(3)
Ratio of net investment      income to average      net assets			3.39	%(3)		2.06	%		1.64	%		1.99	%		1.72	%		2.00	%(3)
Portfolio turnover rate			9	%		24	%		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 Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY INTERNATIONAL CORE EQUITY FUND

Portfolio Highlights

On September 30, 2008, Ivy International Core Equity Fund had net assets totaling $291,622
(in thousands) invested in a diversified portfolio of:

85.11%	Foreign Common Stocks
11.50%	Cash and Cash Equivalents
3.39%	Foreign Preferred Stocks

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

Europe	$	62.34
United Kingdom	$	16.31
France	$	11.09
Switzerland	$	9.84
Germany	$	7.83
Other Europe(1)	$	7.00
Norway	$	5.63
Netherlands	$	4.64
Pacific Basin	$	22.42
Japan	$	15.05
Other Pacific Basin(2)	$	7.37
Cash and Cash Equivalents	$	11.50
Other(3)	$	3.74

(1)Includes $1.23 Finland, $1.03 Ireland, $1.19 Italy, $2.14 Spain and $1.41 Sweden.

(2)Includes $1.52 Australia, $1.11 China, $2.39 Hong Kong and $2.35 Singapore.

(3)Includes $1.22 Bahamas/Caribbean, $1.31 North America and $1.21 South America.

Sector Weightings

Consumer Staples Stocks	$	16.40
Industrials Stocks	$	15.60
Financials Stocks	$	14.85
Cash and Cash Equivalents	$	11.50
Telecommunication Services Stocks	$	8.81
Energy Stocks	$	7.19
Consumer Discretionary Stocks	$	6.71
Materials Stocks	$	5.78
Health Care Stocks	$	5.74
Information Technology Stocks	$	5.49
Utilities Stocks	$	1.93

The Investments of Ivy International Core Equity Fund
September 30, 2008
(In Thousands)                                                                                                                       (Unaudited)
COMMON STOCKS	Shares		Value
Australia - 1.52%
Telstra Corporation Limited (A)		1,319	$	4,426
Brazil - 1.21%
Petroleo Brasileiro S.A. - Petrobras, ADR		81		3,538
Canada - 1.31%
Shoppers Drug Mart Corporation (A)		79		3,819
Cayman Islands - 1.22%
Mindray Medical International Limited, ADR		106		3,562
China - 1.11%
China Construction Bank Corporation (A)(B)		4,856		3,240
Finland - 1.23%
Nokia OYJ (A)		193		3,591
France - 11.09%
ALSTOM (A)		40		3,028
AXA S.A. (A)		151		4,953
France Telecom (A)		115		3,228
Publicis Groupe S.A. (A)		123		3,878
Schneider Electric SA (A)		37		3,204
Societe Generale (A)		53		4,780
TOTAL S.A. (A)		85		5,167
Vivendi Universal (A)		131		4,107
				32,345
Germany - 4.44%
Bayer Aktiengesellschaft (A)		80		5,908
Beiersdorf Aktiengesellschaft (A)		58		3,701
Deutsche Telekom AG, Registered Shares (A)		220		3,345
				12,954
Hong Kong - 2.39%
Cheung Kong (Holdings) Limited (A)		333		3,773
CNOOC Limited (A)		2,837		3,187
				6,960
Ireland - 1.03%
Allied Irish Banks, p.l.c. (A)		368		3,004
Italy - 1.19%
UniCredit S.p.A. (A)		928		3,472
Japan - 15.05%
Central Japan Railway Company (A)		1		4,809
Chiyoda Corporation (A)		488		3,606
Japan Tobacco Inc. (A)		1		4,334
KOSE Corporation (A)		138		3,840
Mitsubishi Electric Corporation (A)		629		4,244
Mitsui & Co., Ltd. (A)		372		4,618
Nintendo Co., Ltd. (A)		15		6,320
Nissin Kogyo Co., Ltd. (A)		402		5,308
Sumitomo Corporation (A)(B)		347		3,235
Toyota Motor Corporation (A)		84		3,570
				43,884
Netherlands - 4.64%
ASML Holding N.V., Ordinary Shares (A)		174		3,048
Heineken N.V. (A)		174		6,972
ING Groep N.V., Certicaaten Van Aandelen (A)		164		3,519
				13,539
Norway - 5.63%
Aker Solutions ASA (A)		236		3,828
Cermaq ASA (A)		395		2,568
Orkla ASA (A)		516		4,750
SeaDrill Limited (A)		137		2,828
Songa Offshore ASA (A)(B)		257		2,448
				16,422
Singapore - 2.35%
DBS Group Holdings Ltd (A)		315		3,754
Singapore Telecommunications Limited (A)		1,357		3,102
				6,856
Spain - 2.14%
Telefonica, S.A. (A)		263		6,247
Sweden - 1.41%
Svenska Cellulosa Aktiebolaget SCA (publ), Class B (A)		389		4,120
Switzerland - 9.84%
EFG International (A)(B)		112		3,221
Nestle S.A., Registered Shares (A)		234		10,096
Roche Holdings AG, Genussschein (A)		53		8,275
Syngenta AG (A)		19		4,039
TEMENOS Group AG (A)(B)		160		3,053
				28,684
United Kingdom - 16.31%
BAE Systems plc (A)(C)		100		737
BAE Systems plc (A)		940		6,926
Barclays PLC (A)		804		4,779
British American Tobacco p.l.c. (A)		119		3,881
Informa plc (A)		479		2,701
National Grid plc (A)		442		5,615
Prudential plc (A)		523		4,772
Serco Group plc (A)		525		3,427
Tanfield Group PLC (A)(B)		2,233		354
Unilever PLC (A)		228		6,194
Vodafone Group Plc (A)		2,428		5,362
Xstrata plc (A)		90		2,800
				47,548
TOTAL COMMON STOCKS - 85.11%			$	248,211
(Cost: $308,622)
PREFERRED STOCKS
Germany
Fresenius AG (A)		68		4,895
Henkel AG & Co. KGaA (A)		136		4,985
TOTAL PREFERRED STOCKS - 3.39%			$	9,880
(Cost: $11,254)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 6.23%
Danaher Corporation,
1.800%, 10-6-08	$	2,000		1,999
Procter & Gamble International Funding S.C.A.       (Procter & Gamble Company (The)),
2.190%, 10-17-08		2,000		1,998
Shell International Finance B.V. and Royal Dutch Shell plc       (Royal Dutch Shell plc),
2.100%, 10-9-08		3,000		2,999
Walgreen Co.,
1.000%, 10-1-08		6,168		6,168
Walt Disney Company (The),
2.000%, 10-22-08		5,000		4,994
				18,158
United States Government Obligations - 1.37%
United States Treasury Bills,
0.100%, 10-9-08		4,000		4,000
TOTAL SHORT-TERM SECURITIES - 7.60%			$	22,158
(Cost: $22,158)
TOTAL INVESTMENT SECURITIES - 96.10%			$	280,249
(Cost: $342,034)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 3.90%				11,373
NET ASSETS - 100.00%			$	291,622

Notes to Schedule of Investments
The following forward currency contracts were outstanding at September 30, 2008:
	Type	Currency	Currency Amount Covered by Contract	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
	Buy	Japanese Yen	672,500	9-25-09		$	30		$	-
	Buy	Singapore Dollar	10,020	12-9-08			-			393
						$	30		$	393

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

(B)No dividends were paid during the preceding 12 months.

(C)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, 2008, the total value of this security amounted to 0.25% of net assets.

Securities with an aggregate market value of $247,171, representing 84.76% of net assets, have been valued in good faith by the Valuation Committee appointed by the Board of Trustees.

The following acronym is used throughout this portfolio:
ADR = American Depositary Receipts

	Market Sector Diversification
	(as a % of net assets)
	Consumer Staples	16.40%
	Industrials	15.60%
	Financials	14.85%
	Telecommunication Services	8.81%
	Energy	7.19%
	Consumer Discretionary	6.71%
	Materials	5.78%
	Health Care	5.74%
	Information Technology	5.49%
	Utilities	1.93%
	Other+	11.50%
+Includes cash and cash equivalents and other assets and liabilities
See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY INTERNATIONAL CORE EQUITY FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $342,034)	$	280,249
Receivables:
Investment securities sold		11,583
Dividends and interest		1,238
Fund shares sold		1,143
Unrealized appreciation on forward currency contracts		30
Prepaid and other assets		49
Total assets		294,292
LIABILITIES
Payable to Fund shareholders		875
Payable for investment securities purchased		561
Unrealized depreciation on forward currency contracts		393
Due to custodian		328
Accrued management fee		223
Accrued shareholder servicing		131
Accrued distribution and service fees		83
Accrued accounting services fee		6
Accrued administrative fee		3
Other		67
Total liabilities		2,670
Total net assets	$	291,622
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	359,212
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		3,911
Accumulated net realized loss on investment transactions		(9,283	)
Net unrealized depreciation in value of investments		(62,218	)
Net assets applicable to outstanding units of capital	$	291,622
Net asset value per share (net assets divided by shares outstanding):
Class A	$13.30
Class B	$12.18
Class C	$12.18
Class E	$13.22
Class I	$13.40
Class Y	$13.38
Capital shares outstanding:
Class A		15,292
Class B		1,039
Class C		3,294
Class E		78
Class I		1,722
Class Y		844

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY INTERNATIONAL CORE EQUITY FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                              (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $578)	$	5,965
Interest and amortization		286
Total income		6,251
Expenses:
Investment management fee		1,458
Distribution and service fees:
Class A		299
Class B		79
Class C		240
Class E		2
Class Y		15
Shareholder servicing:
Class A		380
Class B		34
Class C		62
Class E		7
Class I		20
Class Y		9
Accounting services fee		39
Custodian fees		37
Audit fees		19
Administrative fee		17
Legal fees		3
Other		108
Total expenses		2,828
Less expenses in excess of limit		(2	)
Total expenses		2,826
Net investment income		3,425
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized net loss on securities		(16,362	)
Realized net gain on forward currency contracts		57
Realized net loss on foreign currency transactions		(39	)
Realized net loss on investments		(16,344	)
Unrealized depreciation in value of securities during the period		(70,439	)
Unrealized depreciation in value of forward currency contracts             during the period		(700	)
Unrealized depreciation in value of investments during the period		(71,139	)
Net loss on investments		(87,483	)
Net decrease in net assets resulting from operations	$	(84,058	)

See Accompanying 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,
	2008				2008
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	3,425		$	1,391
Realized net gain (loss) on investments			(16,344	)		19,374
Unrealized depreciation			(71,139	)		(12,793	)
Net increase (decrease) in net assets resulting                        from operations			(84,058	)		7,972
Distributions to shareholders from:(1)
Net investment income:
Class A			(––	)		(976	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		(1	)
Class I			(––	)		(142	)
Class Y			(––	)		(36	)
Advisor Class			(––	)		(––	)*
Realized gains on investment transactions:
Class A			(––	)		(16,690	)
Class B			(––	)		(1,367	)
Class C			(––	)		(3,600	)
Class E			(––	)		(71	)
Class I			(––	)		(1,288	)
Class Y			(––	)		(471	)
Advisor Class			(––	)		(––	)*
			(––	)		(24,642	)
Capital share transactions			58,521			118,394
Total increase (decrease)			(25,537	)		101,724
NET ASSETS
Beginning of period			317,159			215,435
End of period		$	291,622		$	317,159
Accumulated undistributed net                  investment income		$	3,911		$	525

*Not shown due to rounding.

(1)See "Financial Highlights" on pages 141 - 146.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value, beginning       of period		$	17.11		$	17.63		$	15.73		$	11.61		$	10.14		$	9.73		$	7.65
Income (loss) from investment       operations:
Net investment             income (loss)			0.15			0.10			0.10	(1)		(0.06	)		(0.02	)		(0.01	)	(0.02		)
Net realized and unrealized            gain (loss) on             investments			(3.96	)		0.98			2.59	(1)		4.18			1.49			0.42			2.10
Total from investment operations			(3.81	)		1.08			2.69			4.12			1.47			0.41			2.08
Less distributions from:
Net investment             income			(0.00	)		(0.09	)		(0.06	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)
Capital gains			(0.00	)		(1.51	)		(0.73	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)
Total distributions			(0.00	)		(1.60	)		(0.79	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)
Net asset value,       end of period		$	13.30		$	17.11		$	17.63		$	15.73		$	11.61		$	10.14		$	9.73
Total return(2)		- -22.27		%		5.39	%		17.35	%		35.49	%		14.50	%		4.21	%	27.19		%
Net assets, end of period       (in millions)		$204			$222			$161			$67			$17			$10			$9
Ratio of expenses to average       net assets			1.56	%(3)		1.53	%		1.56	%		1.82	%		1.99	%		2.16	%(3)		2.28	%
Ratio of net investment income       (loss) to average net assets			2.09	%(3)		0.65	%		0.63	%		0.14	%		0.09	%		- -0.41	%(3)	- -0.19		%
Portfolio turnover rate			44	%		101	%		108	%		90	%		106	%		23	%		148	%

(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 Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	15.74		$	16.31		$	14.67		$	10.91		$	9.60		$	9.24		$	7.32
Income (loss) from investment       operations:
Net investment             income (loss)			0.10			(0.02	)		(0.00	)(1)		(0.12	)		(0.08	)	(0.03		)	(0.08		)
Net realized and             unrealized gain (loss)             on investments			(3.66	)		0.88			2.37	(1)		3.88			1.39			0.39			2.00
Total from investment       operations			(3.56	)		0.86			2.37			3.76			1.31			0.36			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	)		(1.43	)		(0.73	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)
Total distributions			(0.00	)		(1.43	)		(0.73	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)
Net asset value,       end of period		$	12.18		$	15.74		$	16.31		$	14.67		$	10.91		$	9.60		$	9.24
Total return		- -22.62		%		4.56	%		16.39	%		34.46	%		13.65	%		3.90	%	26.23		%
Net assets, end of period       (in millions)		$13			$16			$17			$15			$20			$24			$25
Ratio of expenses to average       net assets			2.43	%(2)		2.35	%		2.35	%		2.62	%		2.76	%		2.91	%(2)		2.95	%
Ratio of net investment income       (loss) to average net assets			1.25	%(2)		- -0.09	%		- -0.03	%		- -0.41	%		- -0.58	%	- -1.20		%(2)	- -0.82		%
Portfolio turnover rate			44	%		101	%		108	%		90	%		106	%		23	%		148	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	15.72		$	16.30		$	14.65		$	10.90		$	9.59		$	9.23		$	7.32
Income (loss) from       investment       operations:
Net investment             income (loss)			0.11			(0.00	)(1)		(0.01	)(1)		(0.02	)		(0.07	)	(0.03		)	(0.08		)
Net realized and             unrealized gain (loss)             on investments			(3.65	)		0.88	(1)		2.39	(1)		3.77			1.38			0.39			1.99
Total from investment       operations			(3.54	)		0.88			2.38			3.75			1.31			0.36			1.91
Less distributions from:
Net investment             income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)
Capital gains			(0.00	)		(1.46	)		(0.73	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)
Total distributions			(0.00	)		(1.46	)		(0.73	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)
Net asset value,       end of period		$	12.18		$	15.72		$	16.30		$	14.65		$	10.90		$	9.59		$	9.23
Total return		- -22.52		%		4.68	%		16.48	%		34.40	%		13.66	%		3.90	%	26.09		%
Net assets, end of period       (in millions)		$40			$45			$34			$15			$7			$8			$8
Ratio of expenses to       average net assets			2.23	%(2)		2.20	%		2.29	%		2.58	%		2.79	%		3.01	%(2)		3.01	%
Ratio of net investment       income (loss) to       average net assets			1.44	%(2)		- -0.02	%		- -0.08	%		- -0.50	%		- -0.63	%	- -1.30		%(2)	- -0.82		%
Portfolio turnover rate			44	%		101	%		108	%		90	%		106	%		23	%		148	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL CORE EQUITY FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	17.05		$	17.63
Income (loss) from investment operations:
Net investment income (loss)			0.13			(0.02	)
Net realized and unrealized gain (loss) on investments			(3.96	)		0.98
Total from investment operations			(3.83	)		0.96
Less distributions from:
Net investment income			(0.00	)		(0.03	)
Capital gains			(0.00	)		(1.51	)
Total distributions			(0.00	)		(1.54	)
Net asset value, end of period		$	13.22		$	17.05
Total return(2)		- -22.46		%		4.70	%
Net assets, end of period (in millions)		$1			$1
Ratio of expenses to average net assets       including expense waiver			2.11	%(3)		2.38	%(3)
Ratio of net investment income (loss) to       average net assets including expense waiver			1.58	%(3)		- -0.51	%(3)
Ratio of expenses to average net assets       excluding expense waiver			2.47	%(3)		2.38	%(3)(4)
Ratio of net investment income (loss) to       average net assets excluding expense waiver			1.22	%(3)		- -0.51	%(3)(4)
Portfolio turnover rate			44	%		101	%(5)

(1)Commencement of operations of the class.

(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

(5)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL CORE EQUITY FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                (Unaudited)

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	17.20		$	17.71
Income (loss) from investment operations:
Net investment income			0.20			0.16
Net realized and unrealized gain (loss)             on investments			(4.00	)		1.01
Total from investment operations			(3.80	)		1.17
Less distributions from:
Net investment income			(0.00	)		(0.17	)
Capital gains			(0.00	)		(1.51	)
Total distributions			(0.00	)		(1.68	)
Net asset value, end of period		$	13.40		$	17.20
Total return		- -22.09		%		5.83	%
Net assets, end of period (in millions)		$23			$23
Ratio of expenses to average net assets			1.12	%(2)		1.13	%(2)
Ratio of net investment income to average net assets			2.52	%(2)		0.69	%(2)
Portfolio turnover rate			44	%		101	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the 12 months ended March 31, 2008.

See Accompanying 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
	9-30-08					2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	17.19			$	17.70		$	15.79		$	11.64		$	10.15		$	9.74		$	8.16
Income (loss)       from investment       operations:
Net investment             income (loss)			0.15				0.15	(2)		0.12	(2)		(0.06	)		(0.01	)		(0.01	)	(0.01		)
Net realized and            unrealized gain            (loss) on            investments			(3.96	)			0.97	(2)		2.59	(2)		4.21			1.50			0.42			1.59
Total from investment       operations			(3.81	)			1.12			2.71			4.15			1.49			0.41			1.58
Less distributions from:
Net investment             income			(0.00	)			(0.12	)		(0.07	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)
Capital gains			(0.00	)			(1.51	)		(0.73	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)
Total distributions			(0.00	)			(1.63	)		(0.80	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)
Net asset value,       end of period		$	13.38			$	17.19		$	17.70		$	15.79		$	11.64		$	10.15		$	9.74
Total return		- -22.17		%			5.50	%		17.47	%		35.65	%		14.68	%		4.21	%	19.36		%
Net assets,       end of period       (in thousands)	$11,295				$10,233				$	3,848		$	1,025			$294			$145			$125
Ratio of expenses       to average       net assets			1.36	%(3)			1.39	%		1.45	%		1.72	%		1.82	%		2.08	%(3)		1.47	%(3)
Ratio of net       investment       income (loss) to       average net assets			2.23	%(3)			0.77	%		0.76	%		0.13	%		0.29	%		- -0.31	%(3)	- -0.38		%(3)
Portfolio turnover rate			44	%			101	%		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 Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY INTERNATIONAL GROWTH FUND

Portfolio Highlights

On September 30, 2008, Ivy International Growth Fund had net assets totaling $190,943
(in thousands) invested in a diversified portfolio of:

90.00%	Foreign Common and Preferred Stocks
8.49%	Cash and Cash Equivalents
1.51%	Domestic Common Stocks

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

Europe	$	70.15
United Kingdom	$	16.26
Germany	$	16.24
Other Europe(1)	$	12.48
Switzerland	$	11.39
France	$	10.05
Italy	$	3.73
Pacific Basin	$	15.55
Japan	$	12.15
Other Pacific Basin(2)	$	3.40
Cash and Cash Equivalents	$	8.49
North America(3)	$	4.00
Other(4)	$	1.81

(1)Includes $1.06 Denmark, $1.98 Finland, $2.73 Greece, $1.36 Netherlands, $1.86 Norway, $2.02 Spain and $1.47 Sweden.

(2)Includes $2.16 Australia, $0.89 Hong Kong and $0.35 India.

(3)Includes $2.49 Canada and $1.51 United States.

(4)Includes $1.81 South America.

Sector Weightings

Consumer Staples Stocks	$	17.18
Industrials Stocks	$	14.87
Materials Stocks	$	12.55
Financials Stocks	$	10.61
Cash and Cash Equivalents	$	8.49
Information Technology Stocks	$	7.29
Utilities Stocks	$	6.38
Consumer Discretionary Stocks	$	6.08
Health Care Stocks	$	5.87
Telecommunications Stocks	$	5.65
Energy Stocks	$	5.03

The Investments of Ivy International Growth Fund
September 30, 2008
(In Thousands)                                                                                                                       (Unaudited)
COMMON STOCKS	Shares		Value
Australia - 2.16%
Boart Longyear Limited (A)(B)		1,120	$	1,010
Novogen LTD (B)(C)		475		432
Telstra Corporation Limited (B)		800		2,684
				4,126
Brazil - 1.81%
Companhia Vale do Rio Doce, ADR		66		1,264
Petroleo Brasileiro S.A. - Petrobras, ADR		50		2,197
				3,461
Canada - 2.49%
Shoppers Drug Mart Corporation (A)(B)		48		2,338
Shoppers Drug Mart Corporation (B)		50		2,412
				4,750
Denmark - 1.06%
Carlsberg Group (B)(C)		27		2,020
Finland - 1.98%
Fortum Oyj (B)		85		2,852
Nokia OYJ (B)		50		933
				3,785
France - 10.05%
ALSTOM (B)		14		1,063
AXA S.A. (B)		80		2,619
Carrefour S.A. (B)(C)		21		967
EDF SA (B)(C)		24		1,735
Lafarge (B)		9		947
LVMH Moet Hennessy - Louis Vuitton (B)		10		878
Pinault-Printemps-Redoute SA (B)(C)		20		1,745
Societe Generale (B)		13		1,123
TOTAL S.A. (B)		65		3,949
VINCI (B)		89		4,171
				19,197
Germany - 13.96%
Allianz Aktiengesellschaft, Registered Shares (B)(C)		14		1,860
BASF Aktiengesellschaft (B)(C)		19		935
Bayer Aktiengesellschaft (B)		97		7,117
Beiersdorf Aktiengesellschaft (B)		19		1,225
Deutsche Bank AG (B)(C)		25		1,815
E.ON AG (B)		87		4,419
elexis AG (B)		40		749
K+S Aktiengesellschaft (B)		20		1,424
Linde Aktiengesellschaft (B)		10		1,039
Siemens AG (B)		36		3,377
Vossloh AG (B)		26		2,692
				26,652
Greece - 2.73%
Bank of Cyprus Limited (B)		176		1,398
Hellenic Exchanges Holding S.A. (B)		150		1,756
National Bank of Greece S.A. (B)		51		2,065
				5,219
Hong Kong - 0.89%
Cheung Kong (Holdings) Limited (B)		60		680
China South Locomotive & Rolling Stock Corporation       Limited, H Shares (B)(C)(D)		2,700		1,026
				1,706
India - 0.35%
ICICI Bank Limited, ADR		28		659
Italy - 3.73%
Banca Intesa S.p.A. (B)		320		1,760
DiaSorin S.p.A. (A)(B)		40		782
Prysmian SpA (A)(B)		29		561
Saipem S.p.A. (B)		89		2,663
UniCredit S.p.A. (B)		363		1,357
				7,123
Japan - 12.15%
Canon Inc. (B)		31		1,175
Central Japan Railway Company (B)		- -*		2,169
East Japan Railway Company (B)		- -*		2,461
Japan Tobacco Inc. (B)		1		3,392
Mitsubishi Electric Corporation (B)		360		2,429
Nintendo Co., Ltd. (B)		10		4,327
Shin-Etsu Chemical Co., Ltd. (B)		42		1,997
Toyota Motor Corporation (B)		65		2,779
YAMADA-DENKI Co., Ltd. (B)(C)		33		2,463
				23,192
Netherlands - 1.36%
Heineken N.V. (B)		65		2,591
Norway - 1.86%
Orkla ASA (B)		300		2,761
SeaDrill Limited (B)		38		787
				3,548
Spain - 2.02%
Telefonica, S.A. (B)		162		3,852
Sweden - 1.47%
Atlas Copco AB, Class A (B)		93		1,056
H & M Hennes & Mauritz AB (B)		43		1,757
				2,813
Switzerland - 11.39%
Nestle S.A., Registered Shares (B)		210		9,076
Roche Holdings AG, Genussschein (B)		36		5,636
Syngenta AG (B)		13		2,741
TEMENOS Group AG (B)(C)		130		2,478
Zurich Financial Services, Registered Shares (B)		7		1,814
				21,745
United Kingdom - 16.26%
Anglo American plc (B)		49		1,638
BAE Systems plc (B)		451		3,325
Barclays PLC (B)		230		1,367
BHP Billiton Plc (B)(C)		80		1,812
British American Tobacco p.l.c. (B)		162		5,302
IG Group Holdings plc (A)(B)		272		1,546
Informa plc (B)		355		2,002
National Grid plc (B)		250		3,173
Reckitt Benckiser Group plc (B)		72		3,467
Serco Group plc (B)		150		978
Tanfield Group PLC (B)(C)		1,000		159
Vodafone Group Plc (B)		1,930		4,262
Xstrata plc (B)		65		2,026
				31,057
United States - 1.51%
Research In Motion Limited (C)		42		2,880
TOTAL COMMON STOCKS - 89.23%			$	170,376
(Cost: $191,227)
PREFERRED STOCKS
Germany
Fresenius AG (B)		60	$	4,350
TOTAL PREFERRED STOCKS - 2.28%			$	4,350
(Cost: $3,508)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 4.07%
Avon Capital Corp. (Avon Products, Inc.),
2.200%, 10-3-08	$	5,000		5,000
Walgreen Co.,
1.000%, 10-1-08		2,760		2,760
				7,760
United States Government Obligations - 2.09%
United States Treasury Bills,
0.300%, 10-23-08		4,000		3,999
TOTAL SHORT-TERM SECURITIES - 6.16%			$	11,759
(Cost: $11,759)
TOTAL INVESTMENT SECURITIES - 97.67%			$	186,485
(Cost: $206,494)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.33%				4,458
NET ASSETS - 100.00%			$	190,943

Notes to Schedule of Investments

*Not shown due to rounding as amount is less than 500.

(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 liquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $6,237 or 3.27% of net assets.

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

(C)No dividends were paid during the preceding 12 months.

(D)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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of this security amounted to 0.54% of net assets.

Securities with an aggregate market value of $161,950, representing 84.82% of net assets, have been valued in good faith by the Valuation Committee appointed by the Board of Trustees.

The following acronym is used throughout this portfolio:
ADR = American Depositary Receipts

	Market Sector Diversification
	(as a % of net assets)
	Consumer Staples	17.18%
	Industrials	14.87%
	Materials	12.55%
	Financials	10.61%
	Information Technology	7.29%
	Utilities	6.38%
	Consumer Discretionary	6.08%
	Health Care	5.87%
	Telecommunication Services	5.65%
	Energy	5.03%
	Other+	8.49%
+Includes cash and cash equivalents and other assets and liabilities
See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY INTERNATIONAL GROWTH FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $206,494)	$	186,485
Receivables:
Investment securities sold		4,446
Dividends and interest		904
Fund shares sold		145
Prepaid and other assets		39
Total assets		192,019
LIABILITIES
Payable to Fund shareholders		515
Accrued management fee		145
Due to custodian		130
Accrued shareholder servicing		87
Accrued distribution and service fees		85
Accrued accounting services fee		6
Accrued administrative fee		2
Other		106
Total liabilities		1,076
Total net assets	$	190,943
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	450,735
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		1,608
Accumulated net realized loss on investment transactions	(241,408		)
Net unrealized depreciation in value of investments		(19,992	)
Net assets applicable to outstanding units of capital	$	190,943
Net asset value per share (net assets divided by shares outstanding):
Class A	$28.02
Class B	$25.38
Class C	$25.34
Class E	$28.05
Class I	$28.29
Class Y	$28.02
Capital shares outstanding:
Class A		4,429
Class B		260
Class C		1,484
Class E		3
Class I		699
Class Y		100

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY INTERNATIONAL GROWTH FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                            (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $367)	$	3,634
Interest and amortization		190
Total income		3,824
Expenses:
Investment management fee		1,031
Distribution and service fees:
Class A		168
Class B		46
Class C		248
Class E		––	*
Class Y		4
Shareholder servicing:
Class A		196
Class B		21
Class C		98
Class E		––	*
Class I		17
Class Y		3
Custodian fees		101
Accounting services fee		35
Audit fees		19
Administrative fee		12
Legal fees		1
Other		86
Total		2,086
Less expenses in excess of limit		(––	)*
Total expenses		2,086
Net investment income		1,738
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Realized net gain on securities		3,213
Realized net gain on forward currency contracts		53
Realized net loss on foreign currency transactions		(143	)
Realized net gain on investments		3,123
Unrealized depreciation in value of investments during the period		(62,011	)
Net loss on investments		(58,888	)
Net decrease in net assets resulting from operations	$	(57,150	)

*Not shown due to rounding.

See Accompanying 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,
	2008				2008
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	1,738		$	188
Realized net gain on investments			3,123			26,773
Unrealized depreciation			(62,011	)		(16,069	)
Net increase (decrease) in net assets                       resulting from operations			(57,150	)		10,892
Distributions to shareholders from:(1)
Net investment income:
Class A			(––	)		(320	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		(––	)*
Class I			(––	)		(76	)
Class Y			(––	)		(5	)
Advisor Class			NA			(––	)
Class II			NA			(1	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		(––	)
Class I			(––	)		(––	)
Class Y			(––	)		(––	)
Advisor Class			NA			(––	)
Class II			NA			(––	)
			(––	)		(402	)
Capital share transactions			(2,189	)		1,559
Total increase (decrease)			(59,339	)		12,049
NET ASSETS
Beginning of period			250,282			238,233
End of period		$	190,943		$	250,282
Accumulated undistributed net investment income		$	1,608		$	13

*Not shown due to rounding.

(1)See "Financial Highlights" on pages 157 - 162.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	36.27		$	34.60		$	29.74		$	22.86		$	21.34		$	20.64		$	16.35
Income (loss) from       investment operations:
Net investment             income (loss)			0.29	(1)		0.15			0.19			0.08			(0.02	)		(0.01	)		(0.02	)
Net realized and             unrealized gain             (loss) on             investments			(8.54	)(1)		1.59			4.72			6.97			1.54			0.71			4.31
Total from investment       operations			(8.25	)		1.74			4.91			7.05			1.52			0.70			4.29
Less distributions from:
Net investment income			(0.00	)		(0.07	)		(0.05	)		(0.17	)		(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	)		(0.07	)		(0.05	)		(0.17	)		(0.00	)		(0.00	)		(0.00	)
Net asset value,       end of period		$	28.02		$	36.27		$	34.60		$	29.74		$	22.86		$	21.34		$	20.64
Total return(2)		- -22.75		%		5.01	%		16.51	%		30.92	%		7.12	%		3.39	%		26.24	%
Net assets, end of period       (in millions)		$124			$163			$165			$156			$122			$125			$124
Ratio of expenses to       average net assets			1.52	%(3)		1.42	%		1.46	%		1.59	%		1.61	%		1.69	%(3)		1.81	%
Ratio of net investment       income (loss) to       average net assets			1.64	%(3)		0.35	%		0.55	%		0.25	%		- -0.15	%		- -0.26	%(3)		- -0.07	%
Portfolio turnover rate			48	%		103	%		97	%		75	%		76	%		27	%		136	%

(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 Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	33.04		$	31.79		$	27.58		$	21.30		$	20.12		$	19.52		$	15.62
Income (loss) from       investment operations:
Net investment             income (loss)			0.10	(1)		(0.23	)(1)		(0.15	)(1)		(0.17	)(1)		(0.22	)(1)		(0.07	)		(0.23	)
Net realized and             unrealized gain             (loss) on             investments			(7.76	)(1)		1.48	(1)		4.36	(1)		6.45	(1)		1.40	(1)		0.67			4.13
Total from investment       operations			(7.66	)		1.25			4.21			6.28			1.18			0.60			3.90
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		$	25.38		$	33.04		$	31.79		$	27.58		$	21.30		$	20.12		$	19.52
Total return		- -23.19		%		3.96	%		15.23	%		29.48	%		5.87	%		3.08	%		24.97	%
Net assets, end of period       (in millions)			$6			$10			$11			$13			$17			$49			$55
Ratio of expenses to       average net assets			2.55	%(2)		2.45	%		2.55	%		2.74	%		2.75	%		2.75	%(2)		2.84	%
Ratio of net investment       income (loss) to       average net assets			0.65	%(2)		- -0.67	%		- -0.53	%		- -0.72	%		- -1.09	%		- -1.35	%(2)		- -1.06	%
Portfolio turnover rate			48	%		103	%		97	%		75	%		76	%		27	%		136	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	32.97		$	31.71		$	27.52		$	21.20		$	20.00		$	19.39		$	15.52
Income (loss) from       investment operations:
Net investment             income (loss)			0.12	(1)		(0.25	)		(0.15	)		(0.09	)(1)		(0.32	)		(0.07	)		(0.20	)
Net realized and             unrealized gain             (loss) on             investments			(7.75	)(1)		1.51			4.34			6.41	(1)		1.52			0.68			4.07
Total from investment       operations			(7.63	)		1.26			4.19			6.32			1.20			0.61			3.87
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		$	25.34		$	32.97		$	31.71		$	27.52		$	21.20		$	20.00		$	19.39
Total return		- -23.14		%		3.97	%		15.23	%		29.81	%		6.00	%		3.15	%		24.94	%
Net assets, end of period       (in millions)			$38			$53			$57			$56			$9			$11			$12
Ratio of expenses to       average net assets			2.47	%(2)		2.42	%		2.54	%		2.43	%		2.64	%		2.67	%(2)		2.80	%
Ratio of net investment       income (loss) to       average net assets			0.72	%(2)		- -0.65	%		- -0.53	%		- -0.39	%		- -1.14	%		- -1.25	%(2)		- -0.94	%
Portfolio turnover rate			48	%		103	%		97	%		75	%		76	%		27	%		136	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY INTERNATIONAL GROWTH FUND
      Class E Shares⁽¹⁾
      For a Share of Capital Stock Outstanding Throughout Each Period:                            (Unaudited)

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	36.28		$	34.54
Income (loss) from investment operations:
Net investment income			0.32			0.19
Net realized and unrealized gain (loss)             on investments			(8.55	)		1.67
Total from investment operations			(8.23	)		1.86
Less distributions from:
Net investment income			(0.00	)		(0.12	)
Capital gains			(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.12	)
Net asset value, end of period		$	28.05		$	36.28
Total return(3)		- -22.69		%		5.34	%
Net assets, end of period (in thousands)		$81			$105
Ratio of expenses to average net assets			1.34	%(4)		1.27	%(4)
Ratio of net investment income to average net assets			1.83	%(4)		0.49	%(4)
Portfolio turnover rate			48	%		103	%(5)

(1)Class is closed.

(2)Commencement of operations of the class.

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

(4)Annualized.

(5)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	36.57		$	34.52
Income (loss) from investment operations:
Net investment income			0.32			0.10
Net realized and unrealized gain (loss)             on investments			(8.60	)		2.12
Total from investment operations			(8.28	)		2.22
Less distributions from:
Net investment income			(0.00	)		(0.17	)
Capital gains			(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.17	)
Net asset value, end of period		$	28.29		$	36.57
Total return		- -22.64		%		6.39	%
Net assets, end of period (in millions)		$20			$21
Ratio of expenses to average net assets			1.20	%(2)		1.15	%(2)
Ratio of net investment income to average net assets			1.86	%(2)		0.32	%(2)
Portfolio turnover rate			48	%		103	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the 12 ended March 31, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,     beginning of period		$	36.27		$	34.59		$	29.74		$	22.86		$	21.35		$	20.65		$	17.69
Income (loss) from     investment operations:
Net investment         income (loss)			0.29	(2)		0.31			0.28			0.18	(2)		(0.09	)		(0.02	)		0.02
Net realized and         unrealized gain         (loss) on         investments			(8.54	)(2)		1.42			4.63			6.87	(2)		1.60			0.72			2.94
Total from investment     operations			(8.25	)		1.73			4.91			7.05			1.51			0.70			2.96
Less distributions from:
Net investment         income			(0.00	)		(0.05	)		(0.06	)		(0.17	)		(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	)		(0.06	)		(0.17	)		(0.00	)		(0.00	)		(0.00	)
Net asset value,     end of period		$	28.02		$	36.27		$	34.59		$	29.74		$	22.86		$	21.35		$	20.65
Total return		- -22.75		%		4.99	%		16.50	%		30.95	%		7.07	%		3.39	%		16.73	%
Net assets,     end of period     (in thousands)		$2,810			$3,327			$4,960			$6,144			$229			$140			$135
Ratio of expenses to     average net assets     including expense     waiver			1.50	%(3)		1.44	%		1.46	%		1.58	%		1.66	%		1.76	%(3)		0.59	%(3)
Ratio of net investment     income (loss) to     average net assets     including expense     waiver			1.64	%(3)		0.31	%		0.65	%		0.81	%		- -0.33	%		- -0.32	%(3)		0.24	%(3)
Ratio of expenses to     average net assets     excluding expense     waiver			1.51	%(3)		1.44	%(4)		1.46	%(4)		1.58	%(4)		1.66	%(4)		1.76	%(3)(4)		0.59	%(3)(4)
Ratio of net investment     income (loss) to     average net assets     excluding expense     waiver			1.63	%(3)		0.31	%(4)		0.65	%(4)		0.81	%(4)		- -0.33	%(4)		- -0.32	%(3)(4)		0.24	%(3)(4)
Portfolio turnover rate			48	%		103	%		97	%		75	%		76	%		27	%		136	%(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 Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY PACIFIC OPPORTUNITIES FUND

Portfolio Highlights

On September 30, 2008, Ivy Pacific Opportunities Fund had net assets totaling $397,814
(in thousands) invested in a diversified portfolio of:

91.22%	Foreign Common Stocks and Investment Funds
4.65%	Cash and Cash Equivalents
4.13%	Domestic Investment Funds

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

China	$	29.02
South Korea	$	14.92
India	$	12.31
Taiwan	$	8.34
Singapore	$	7.50
Hong Kong	$	5.94
Cash and Cash Equivalents	$	4.65
Malaysia	$	4.25
United States	$	4.13
Indonesia	$	4.02
Other Pacific Basin(1)	$	2.99
Cayman Islands	$	1.93

(1)Includes $1.30 Australia, $1.11 Thailand and $0.58 Vietnam.

Sector Weightings

Financials Stocks	$	22.87
Industrials Stocks	$	21.30
Information Technology Stocks	$	12.66
Energy Stocks	$	11.87
Consumer Discretionary Stocks	$	4.94
Utilities Stocks	$	4.81
Telecommunications Stocks	$	4.73
Cash and Cash Equivalents	$	4.65
Materials Stocks	$	4.47
Multiple Industry Stocks	$	4.13
Miscellaneous Stocks(1)	$	3.57

(1)Includes $2.32 Consumer Staples Stocks and $1.25 Health Care Stocks.

The Investments of Ivy Pacific Opportunities Fund
September 30, 2008
(In Thousands)                                                                                                                       (Unaudited)
COMMON STOCKS	Shares		Value
Australia - 1.30%
BHP Billiton Plc (A)		200	$	5,174
Cayman Islands - 1.93%
Agria Corporation, ADR (B)		25		85
China Distance Education Holdings Limited, ADR (B)		260		1,040
China Nepstar Chain Drugstore Ltd., ADR		100		489
CNinsure Inc., ADR (B)		92		825
Greentown China Holdings Limited (A)(B)		4,500		2,265
KWG Property Holding Limited (A)		11,012		2,981
				7,685
China - 29.02%
Agile Property Holdings Limited (A)		8,798		4,019
China BlueChemical Ltd., H Shares (A)		8,982		5,008
China Merchants Bank Co., Limited, H Shares (A)(C)		2,000		4,830
China Oilfield Services Limited (A)		7,904		7,323
China Petroleum & Chemical Corporation, ADR		50		3,917
China Railway Construction Corporation Limited,       H Shares (A)(B)(C)		3,000		3,961
China Resources Power Holdings Company Limited (A)		3,182		6,951
China Shenhua Energy Company Limited, H Shares (A)		1,546		3,792
China Shenhua Energy Company Limited, H Shares (A)(C)		1,200		2,944
China South Locomotive & Rolling Stock Corporation       Limited, H Shares (A)(B)		8,000		3,039
China Yurun Food Group Limited (A)		4,901		6,391
ChinaEdu Corporation, ADR (B)		350		1,426
CNPC (Hong Kong) Limited (A)		12,310		5,241
COSCO Pacific Limited (A)		3,000		3,443
Enerchina Holdings Limited (A)(B)		56,718		1,241
Heng Tai Consumables Group Limited (A)(B)		21,375		1,869
Honghua Group Limited (A)(B)(C)		4,000		772
Industrial and Commercial Bank of China (Asia) Limited (A)(B)		8,000		4,835
NetEase.com, Inc., ADR (B)		350		7,985
PetroChina Company Limited, H Shares (A)		6,470		6,716
REXCAPITAL Financial Holdings Limited (A)(B)		52,975		2,219
Simcere Pharmaceutical Group, ADR (B)		574		4,978
SINA Corporation (B)		163		5,765
Tencent Holdings Limited (A)		1,600		11,695
Wah Sang Gas Holdings Limited (A)(B)		736		- -*
Yingli Green Energy Holding Company Limited, ADR (B)		277		3,048
Zhuzhou CSR Times Electric Co., Ltd., H Shares (A)		2,843		2,025
				115,433
Hong Kong - 5.94%
Beijing Enterprises Holdings Limited (A)		1,538		5,858
Cheung Kong (Holdings) Limited (A)		443		5,019
China South Locomotive & Rolling Stock Corporation       Limited, H Shares (A)(B)(D)		15,240		5,790
Lee & Man Paper Manufacturing Limited (A)		2,194		1,202
Melco International Development Limited (A)(B)		5,000		1,416
Pan Asia Environmental Protection Group Limited (A)(D)		13,372		2,004
Pou Sheng International (Holdings) Limited (A)(B)(C)		20,000		2,318
				23,607
India - 12.31%
Bharat Heavy Electricals Limited (A)		341		11,759
Bharti Airtel Limited (A)(B)		436		7,387
CESC Limited (A)(C)		450		2,688
ICICI Bank Limited, ADR		356		8,382
Nagarjuna Construction Company Limited (A)		1,435		2,998
Reliance Industries Limited (A)		169		7,100
TATA POWER COMPANY LIMITED (THE) (A)(B)		419		8,263
United Breweries (Holdings) Limited (A)(B)(D)		79		391
				48,968
Indonesia - 4.02%
Perusahaan Perseroan (Persero) PT Telekomunikasi       Indonesia Tbk		142		4,215
PT Astra International Tbk (A)		2,866		5,112
PT Bank Rakyat Indonesia (A)		9,513		5,375
PT. Indika Inti Energi (A)(B)(C)		6,000		1,304
				16,006
Malaysia - 4.25%
Bumiputra-Commerce Holdings Berhad (A)		1,356		3,033
Gamuda Berhad (A)		6,355		3,969
Genting Berhad (A)		2,068		3,193
IOI Corporation Berhad (A)		- -*		- -*
LION DIVERSIFIED HOLDINGS BERHAD (A)		1,946		315
PARKSON HOLDINGS BERHAD (A)		2,530		2,829
Sime Darby Berhad (A)		1,848		3,572
				16,911
Singapore - 7.50%
Cambridge Industrial Trust (A)(C)		9,500		2,905
Keppel Corporation Limited (A)		1,876		10,367
Keppel Land Limited (A)		1,742		3,479
SembCorp Industries Ltd (A)		1,424		3,262
Singapore Telecommunications Limited (A)		2,139		4,890
United Overseas Bank Limited (A)		414		4,949
				29,852
South Korea - 14.92%
Daegu Bank, Ltd. (A)		443		3,960
Daelim Industrial Co., Ltd. (A)		113		7,002
ForHuman Co., Ltd. (A)(B)		201		2,845
Hyundai Development Company - Engineering &       Construction (A)		107		3,999
KCC Corporation (A)		11		3,537
Korea Investment Holdings Co., Ltd. (A)(B)		98		2,675
Kyeryong Construction Industrial Co. Ltd (A)		103		1,583
LG Electronics Inc. (A)(B)		68		6,303
NHN Corporation (A)(B)		48		6,167
Samsung C&T Corporation (A)		78		3,462
Samsung Electronics Co., Ltd. (A)		13		5,843
SK Corporation (A)		65		6,053
Woori Finance Holdings Co., Ltd. (A)		576		5,919
				59,348
Taiwan - 8.34%
Cathay Financial Holding Co., Ltd. (A)		4,613		6,371
First Commercial Bank Co., Ltd. (A)(B)		10,521		6,588
Fubon Financial Holding Co., Ltd. (A)		9,096		6,582
Hon Hai Precision Ind. Co., Ltd. (A)		2,247		8,049
InnoLux Display Corporation, GDR (A)(B)(C)		770		1,987
MediaTek Incorporation (A)		1		7
Taiwan Cement Corporation (A)(B)		6,000		3,586
				33,170
Thailand - 1.11%
Advanced Info Service Public Company Limited (A)		962		2,311
PTT Public Company Limited (A)		315		2,121
				4,432
TOTAL COMMON STOCKS - 90.64%			$	360,586
(Cost: $481,901)
INVESTMENT FUNDS
United States - 4.13%
iShares MSCI Hong Kong Index Fund		590		7,791
iShares MSCI Taiwan Index Fund		800		8,616
				16,407
Vietnam - 0.58%
Vietnam Azalea Fund Limited (B)(E)(F)		500		2,305
TOTAL INVESTMENT FUNDS - 4.71%			$	18,712
(Cost: $24,916)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Walgreen Co.,
1.000%, 10-1-08	$	1,401		1,401
TOTAL SHORT-TERM SECURITIES - 0.35%			$	1,401
(Cost: $1,401)
TOTAL INVESTMENT SECURITIES - 95.70%			$	380,699
(Cost: $508,218)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 4.30%				17,115
NET ASSETS - 100.00%			$	397,814

Notes to Schedule of Investments

*Not shown due to rounding as amount is less than 500.

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

(B)No dividends were paid during the preceding 12 months.

(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 liquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $23,709 or 5.96% 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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $8,185 or 2.06% of net assets.

(E)Restricted security. At September 30, 2008, the following restricted security was owned:
	Security	Acquisition Date	Shares	Cost	Market Value
	Vietnam Azalea Fund Limited	6-14-07	500	$2,900		$2,305
The total value of this security represented approximately 0.58% of net assets at September 30, 2008.
(F)Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. The Fund and other mutual funds managed by its investment manager, Ivy Investment Management Company, or other related parties together own 30% of the outstanding shares of this security at September 30, 2008.
Securities with an aggregate market value of $301,873, representing 75.88% of net assets, have been valued in good faith by the Valuation Committee appointed by the Board of Trustees.
The following acronyms are used throughout this portfolio: ADR = American Depositary Receipts GDR = Global Depositary Receipts

	Market Sector Diversification
	(as a % of net assets)
	Financials	22.87%
	Industrials	21.30%
	Information Technology	12.66%
	Energy	11.87%
	Consumer Discretionary	4.94%
	Utilities	4.81%
	Telecommunication Services	4.73%
	Materials	4.47%
	Multiple Industry	4.13%
	Consumer Staples	2.32%
	Health Care	1.25%
	Other+	4.65%
+Includes cash and cash equivalents and other assets and liabilities
See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY PACIFIC OPPORTUNITIES FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value:
Securities (cost - $505,318)	$	378,394
Affilated company (cost - $2,900)		2,305
		380,699
Cash denominated in foreign currencies (cost - $10,326)		10,345
Receivables:
Investment securities sold		7,678
Dividends and interest		777
Fund shares sold		670
Prepaid and other assets		45
Total assets		400,214
LIABILITIES
Payable to Fund shareholders		1,380
Accrued management fee		364
Accrued shareholder servicing		221
Accrued distribution and service fees		105
Due to custodian		52
Payable for investment securities purchased		47
Accrued accounting services fee		8
Accrued administrative fee		4
Other		219
Total liabilities		2,400
Total net assets	$	397,814

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	471,982
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		1,212
Accumulated undistributed net realized gain on investment transactions		52,119
Net unrealized depreciation in value of investments	(127,499		)
Net assets applicable to outstanding units of capital	$	397,814
Net asset value per share (net assets divided by shares outstanding):
Class A	$12.61
Class B	$11.41
Class C	$11.61
Class E	$12.65
Class I	$12.76
Class Y	$12.73
Advisor Class	$12.35
Capital shares outstanding:
Class A		25,553
Class B		1,187
Class C		2,023
Class E		7
Class I		2,608
Class Y		383
Advisor Class		4

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY PACIFIC OPPORTUNITIES FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                            (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $486)	$	8,009
Interest and amortization		169
Total income		8,178
Expenses:
Investment management fee		2,706
Shareholder servicing:
Class A		842
Class B		65
Class C		69
Class E		––	*
Class I		31
Class Y		5
Advisor Class		––	*
Distribution and service fees:
Class A		560
Class B		97
Class C		171
Class E		––	*
Class Y		8
Custodian fee		233
Accounting services fee		51
Administrative fee		28
Audit fees		23
Legal fees		4
Other		181
Total expenses		5,074
Net investment income		3,104
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Realized net gain on securities		6,743
Realized net gain on written options		306
Realized net gain on forward currency contracts		156
Realized net loss on foreign currency transactions		(968	)
Realized net gain on investments		6,237
Unrealized depreciation in value of investments during the period(1)		(171,835	)
Net loss on investments		(165,598	)
Net decrease in net assets resulting from operations	$	(162,494	)

*Not shown due to rounding.

(1)Includes $432 in depreciation of affiliated security.

See Accompanying Notes to Financial Statements.

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

	For the six months ended September 30,				For the fiscal year ended March 31,
	2008				2008
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	3,104		$	(983	)
Realized net gain on investments			6,237			89,854
Unrealized depreciation		(171,835		)		(36,653	)
Net increase (decrease) in net assets                       resulting from operations		(162,494		)		52,218
Distributions to shareholders from:(1)
Net investment income:
Class A			(––	)		(1,229	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		(1	)
Class I			(––	)		(212	)
Class Y			(––	)		(34	)
Advisor Class			(––	)		(1	)
Realized gains on investment transactions:
Class A			(––	)		(50,174	)
Class B			(––	)		(2,457	)
Class C			(––	)		(4,433	)
Class E			(––	)		(12	)
Class I			(––	)		(3,011	)
Class Y			(––	)		(815	)
Advisor Class			(––	)		(11	)
			(––	)		(62,390	)
Capital share transactions			(14,952	)		148,302
Total increase (decrease)		(177,446		)		138,130
NET ASSETS
Beginning of period			575,260			437,130
End of period		$	397,814		$	575,260
Accumulated undistributed net investment                    income (loss)		$	1,212		$	(924	)

(1)See "Financial Highlights" on pages 174 - 180.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	17.61		$	16.91		$	14.32		$	10.61		$	9.55		$	9.11			$	5.96
Income (loss) from       investment operations:
Net investment             income (loss)			0.10			(0.01	)		(0.02	)		0.02	(1)		(0.07	)		0.00			(0.02		)
Net realized and             unrealized gain             (loss) on             investments			(5.10	)		2.80			3.23			3.83	(1)		1.13			0.44				3.17
Total from investment       operations			(5.00	)		2.79			3.21			3.85			1.06			0.44				3.15
Less distributions from:
Net investment             income			(0.00	)		(0.05	)		(0.01	)		(0.04	)		(0.00	)	(0.00		)		(0.00		)
Capital gains			(0.00	)		(2.04	)		(0.61	)		(0.10	)		(0.00	)	(0.00		)		(0.00		)
Total distributions			(0.00	)		(2.09	)		(0.62	)		(0.14	)		(0.00	)	(0.00		)		(0.00		)
Net asset value,       end of period		$	12.61		$	17.61		$	16.91		$	14.32		$	10.61		$	9.55			$	9.11
Total return(2)		- -28.39		%		14.30	%		22.60	%		36.51	%		11.10	%		4.83	%		52.85		%
Net assets, end of period       (in millions)		$322			$471			$375			$191			$64			$29				$18
Ratio of expenses to       average net assets       including expense       waiver			1.82	%(3)		1.74	%		1.84	%		1.95	%		2.22	%		2.07	%(3)			2.64	%
Ratio of net investment       income (loss) to       average net assets       including expense       waiver			1.17	%(3)		- -0.08	%		- -0.14	%		0.24	%		- -0.80	%	- -1.07		%(3)		- -0.39		%
Ratio of expenses to       average net assets       excluding expense       waiver			1.82	%(3)(4)		1.74	%(4)		1.84	%(4)		1.95	%(4)		2.22	%(4)		2.07	%(3)(4)			2.73	%
Ratio of net investment       income (loss) to       average net assets       excluding expense       waiver			1.17	%(3)(4)		- -0.08	%(4)		- -0.14	%(4)		0.24	%(4)		- -0.80	%(4)	- -1.07		%(3)(4)		- -0.48		%
Portfolio turnover rate			51	%		96	%		74	%		87	%		87	%		61	%			187	%

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

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	16.01		$	15.49		$	13.29		$	9.91		$	9.01		$	8.61			$	5.75
Income (loss) from       investment operations:
Net investment loss			0.01	(1)		(0.19	)		(0.07	)		(0.06	)(1)	(0.13		)	(0.04		)		(0.06		)
Net realized and             unrealized gain             (loss) on             investments			(4.61	)(1)		2.56			2.88			3.54	(1)		1.03			0.44				2.92
Total from investment       operations			(4.60	)		2.37			2.81			3.48			0.90			0.40				2.86
Less distributions from:
Net investment             income			(0.00	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)		(0.00		)
Capital gains			(0.00	)		(1.85	)		(0.61	)		(0.10	)	(0.00		)	(0.00		)		(0.00		)
Total distributions			(0.00	)		(1.85	)		(0.61	)		(0.10	)	(0.00		)	(0.00		)		(0.00		)
Net asset value,       end of period		$	11.41		$	16.01		$	15.49		$	13.29		$	9.91		$	9.01			$	8.61
Total return		- -28.73		%		13.16	%		21.33	%		35.26	%		9.99	%		4.65	%		49.74		%
Net assets, end of period       (in millions)		$14			$21			$20			$11			$6			$6				$6
Ratio of expenses to       average net assets       including expense       waiver			2.89	%(2)		2.74	%		2.88	%		2.91	%		3.06	%		2.86	%(2)			3.46	%
Ratio of net investment       income (loss) to       average net assets       including expense       waiver			0.10	%(2)		- -1.05	%		- -1.15	%		- -0.51	%	- -1.57		%	- -1.92		%(2)		- -1.15		%
Ratio of expenses to       average net assets       excluding expense       waiver			2.89	%(2)(3)		2.74	%(3)		2.88	%(3)		2.91	%(3)		3.06	%(3)		2.86	%(2)(3)			3.55	%
Ratio of net investment       income (loss) to       average net assets       excluding expense       waiver			0.10	%(2)(3)		- -1.05	%(3)		- -1.15	%(3)		- -0.51	%(3)	- -1.57		%(3)	- -1.92		%(2)(3)		- -1.24		%
Portfolio turnover rate			51	%		96	%		74	%		87	%		87	%		61	%			187	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

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

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	16.27		$	15.73		$	13.45		$	10.01		$	9.09		$	8.68			$	5.75
Income (loss) from       investment operations:
Net investment             income (loss)			0.01			(0.14	)		(0.08	)		(0.06	)(1)		(0.09	)	(0.02		)		(0.05		)
Net realized and             unrealized gain             (loss) on             investments			(4.67	)		2.58			2.97			3.60	(1)		1.01			0.43				2.98
Total from investment       operations			(4.66	)		2.44			2.89			3.54			0.92			0.41				2.93
Less distributions from:
Net investment             income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)		(0.00		)
Capital gains			(0.00	)		(1.90	)		(0.61	)		(0.10	)		(0.00	)	(0.00		)		(0.00		)
Total distributions			(0.00	)		(1.90	)		(0.61	)		(0.10	)		(0.00	)	(0.00		)		(0.00		)
Net asset value,       end of period		$	11.61		$	16.27		$	15.73		$	13.45		$	10.01		$	9.09			$	8.68
Total return		- -28.64		%		13.36	%		21.68	%		35.51	%		10.12	%		4.72	%		50.96		%
Net assets, end of period       (in millions)		$24			$38			$34			$18			$7			$3				$2
Ratio of expenses to       average net assets       including expense       waiver			2.57	%(2)		2.49	%		2.60	%		2.75	%		3.06	%		2.57	%(2)			3.48	%
Ratio of net investment       income (loss) to       average net assets       including expense       waiver			0.40	%(2)		- -0.82	%		- -0.87	%		- -0.50	%		- -1.68	%	- -1.59		%(2)		- -1.14		%
Ratio of expenses to       average net assets       excluding expense       waiver			2.57	%(2)(3)		2.49	%(3)		2.60	%(3)		2.75	%(3)		3.06	%(3)		2.57	%(2)(3)			3.57	%
Ratio of net investment       income (loss) to       average net assets       excluding expense       waiver			0.40	%(2)(3)		- -0.82	%(3)		- -0.87	%(3)		- -0.50	%(3)		- -1.68	%(3)	- -1.59		%(2)(3)		- -1.23		%
Portfolio turnover rate			51	%		96	%		74	%		87	%		87	%		61	%			187	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

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

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	17.62		$	16.88
Income (loss) from investment operations:
Net investment income			0.13			0.06
Net realized and unrealized gain (loss)             on investments			(5.10	)		2.82
Total from investment operations			(4.97	)		2.88
Less distributions from:
Net investment income			(0.00	)		(0.10	)
Capital gains			(0.00	)		(2.04	)
Total distributions			(0.00	)		(2.14	)
Net asset value, end of period		$	12.65		$	17.62
Total return(3)		- -28.21		%		14.79	%
Net assets, end of period (in thousands)		$82			$115
Ratio of expenses to average net assets			1.42	%(4)		1.43	%(4)
Ratio of net investment income to average net assets			1.56	%(4)		0.26	%(4)
Portfolio turnover rate			51	%		96	%(5)

(1)Class is closed.

(2)Commencement of operations of the class.

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

(4)Annualized.

(5)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	17.77		$	17.00
Income (loss) from investment operations:
Net investment income (loss)			0.13			(0.03	)(2)
Net realized and unrealized gain (loss)             on investments			(5.14	)		2.98	(2)
Total from investment operations			(5.01	)		2.95
Less distributions from:
Net investment income			(0.00	)		(0.14	)
Capital gains			(0.00	)		(2.04	)
Total distributions			(0.00	)		(2.18	)
Net asset value, end of period		$	12.76		$	17.77
Total return		- -28.19		%		15.10	%
Net assets, end of period (in millions)		$33			$38
Ratio of expenses to average net assets			1.30	%(3)		1.31	%(3)
Ratio of net investment income to average net assets			1.68	%(3)		0.06	%(3)
Portfolio turnover rate			51	%		96	%(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, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,     beginning of period		$	17.75		$	17.03		$	14.41		$	10.67		$	9.58		$	9.13			$	6.85
Income (loss) from     investment operations:
Net investment         income (loss)			0.12			0.01			0.02			0.04	(2)		(0.04	)	(0.00		)		(0.01		)
Net realized and         unrealized gain         (loss) on         investments			(5.14	)		2.83			3.26			3.87	(2)		1.13			0.45				2.29
Total from investment     operations			(5.02	)		2.84			3.28			3.91			1.09			0.45				2.28
Less distributions from:
Net investment         income			(0.00	)		(0.08	)		(0.05	)		(0.07	)		(0.00	)	(0.00		)		(0.00		)
Capital gains			(0.00	)		(2.04	)		(0.61	)		(0.10	)		(0.00	)	(0.00		)		(0.00		)
Total distributions			(0.00	)		(2.12	)		(0.66	)		(0.17	)		(0.00	)	(0.00		)		(0.00		)
Net asset value,     end of period		$	12.73		$	17.75		$	17.03		$	14.41		$	10.67		$	9.58			$	9.13
Total return		- -28.28		%		14.48	%		22.95	%		36.90	%		11.38	%		4.93	%		33.28		%
Net assets, end of     period (in thousands)		$4,879			$7,144			$8,101			$3,790			$1,100			$707				$497
Ratio of expenses to     average net assets     including expense     waiver			1.56	%(3)		1.55	%		1.58	%		1.68	%		1.88	%		1.64	%(3)			2.01	%(3)
Ratio of net investment     income (loss) to     average net assets     including expense     waiver			1.42	%(3)		0.06	%		0.11	%		0.46	%		- -0.47	%	- -0.68		%(3)		- -0.40		%(3)
Ratio of expenses to     average net assets     excluding expense     waiver			1.56	%(3)(4)		1.55	%(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 expense     waiver			1.42	%(3)(4)		0.06	%(4)		0.11	%(4)		0.46	%(4)		- -0.47	%(4)	- -0.68		%(3)(4)		- -0.57		%(3)
Portfolio turnover rate			51	%		96	%		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 Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	17.19		$	16.54		$	14.01		$	10.38		$	9.28		$	8.85			$	5.81
Income (loss) from       investment operations:
Net investment             income (loss)			0.23			0.09			0.09			0.14	(2)		(0.01	)	(0.01		)		(0.01		)
Net realized and             unrealized gain             (loss) on             investments			(5.07	)		2.76			3.15			3.70	(2)		1.11			0.44				3.05
Total from investment       operations			(4.84	)		2.85			3.24			3.84			1.10			0.43				3.04
Less distributions from:
Net investment             income			(0.00	)		(0.16	)		(0.10	)		(0.11	)		(0.00	)	(0.00		)		(0.00		)
Capital gains			(0.00	)		(2.04	)		(0.61	)		(0.10	)		(0.00	)	(0.00		)		(0.00		)
Total distributions			(0.00	)		(2.20	)		(0.71	)		(0.21	)		(0.00	)	(0.00		)		(0.00		)
Net asset value,       end of period		$	12.35		$	17.19		$	16.54		$	14.01		$	10.38		$	9.28			$	8.85
Total return		- -28.16		%		14.86	%		23.33	%		37.28	%		11.85	%		4.86	%		52.32		%
Net assets, end of period       (in thousands)		$53			$102			$89			$76			$64			$58				$55
Ratio of expenses to       average net assets       including expense       waiver			1.20	%(3)		1.22	%		1.28	%		1.42	%		1.56	%		1.82	%(3)			2.49	%
Ratio of net investment       income (loss) to       average net assets       including expense       waiver			1.77	%(3)		0.46	%		0.55	%		1.12	%		- -0.06	%	- -0.88		%(3)		- -0.09		%
Ratio of expenses to       average net assets       excluding expense       waiver			1.20	%(3)(4)		1.22	%(4)		1.28	%(4)		1.42	%(4)		1.56	%(4)		1.82	%(3)(4)			2.65	%
Ratio of net investment       income (loss) to       average net assets       excluding expense       waiver			1.77	%(3)(4)		0.46	%(4)		0.55	%(4)		1.12	%(4)		- -0.06	%(4)	- -0.88		%(3)(4)		- -0.25		%
Portfolio turnover rate			51	%		96	%		74	%		87	%		87	%		61	%			187	%

(1)Class is closed.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY BALANCED FUND

Portfolio Highlights

On September 30, 2008, Ivy Balanced Fund had net assets totaling $108,416 (in thousands) invested in a diversified portfolio of:

59.23%	Domestic Common Stocks
23.50%	Cash and Cash Equivalents
12.20%	United States Government and Government Agency Obligations
2.57%	Foreign Common Stocks
1.97%	Domestic Corporate Debt Securities
0.53%	Foreign Corporate Debt Securities

Asset Allocation

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:

Stocks	$	61.80
Information Technology Stocks	$	11.51
Financials Stocks	$	10.72
Consumer Staples Stocks	$	10.34
Health Care Stocks	$	9.92
Energy Stocks	$	7.04
Industrials Stocks	$	6.18
Miscellaneous Stocks(1)	$	3.75
Materials Stocks	$	2.34
Cash and Cash Equivalents	$	23.50
Bonds	$	14.70
United States Government and Government Agency Obligations	$	12.20
Corporate Debt Securities	$	2.50

(1)Includes $0.83 Consumer Discretionary Stocks, $1.58 Telecommunication Services Stocks and $1.34 Utilities Stocks.

The Investments of Ivy Balanced Fund
September 30, 2008
(In Thousands)                                                                                                                       (Unaudited)
COMMON STOCKS	Shares		Value
Aerospace & Defense - 2.06%
General Dynamics Corporation		30	$	2,238
Air Freight & Logistics - 0.61%
Expeditors International of Washington, Inc.		19		660
Asset Management & Custody Banks - 1.80%
Northern Trust Corporation		27		1,958
Biotechnology - 2.89%
Genentech, Inc. (A)		16		1,428
Gilead Sciences, Inc. (A)		37		1,707
				3,135
Brewers - 1.05%
Anheuser-Busch Companies, Inc.		18		1,142
Communications Equipment - 4.45%
Cisco Systems, Inc. (A)		87		1,957
Nokia Corporation, Series A, ADR		76		1,415
QUALCOMM Incorporated		34		1,449
				4,821
Computer Hardware - 2.80%
Apple Inc. (A)		9		1,057
Hewlett-Packard Company		43		1,975
				3,032
Construction & Engineering - 1.51%
Fluor Corporation		29		1,638
Data Processing & Outsourced Services - 0.62%
Paychex, Inc.		20		674
Distillers & Vintners - 0.97%
Brown-Forman Corporation, Class B		15		1,048
Diversified Banks - 1.16%
Wells Fargo & Company		34		1,257
Diversified Chemicals - 1.23%
E.I. du Pont de Nemours and Company		33		1,334
Electric Utilities - 1.34%
Exelon Corporation		23		1,453
Electrical Components & Equipment - 1.21%
Emerson Electric Co.		32		1,313
Health Care Equipment - 0.76%
Zimmer Holdings, Inc. (A)		13		826
Health Care Supplies - 1.43%
DENTSPLY International Inc.		41		1,547
Household Products - 2.48%
Colgate-Palmolive Company		36		2,690
Hypermarkets & Super Centers - 1.75%
Wal-Mart Stores, Inc.		32		1,899
Industrial Gases - 1.11%
Air Products and Chemicals, Inc.		18		1,198
Integrated Oil & Gas - 4.76%
BP p.l.c., ADR		27		1,370
Chevron Corporation		18		1,501
Exxon Mobil Corporation		30		2,291
				5,162
Integrated Telecommunication Services - 1.58%
AT&T Inc.		61		1,711
Investment Banking & Brokerage - 0.60%
Goldman Sachs Group, Inc. (The)		5		653
Movies & Entertainment - 0.83%
News Corporation Limited, Class A		75		894
Office Services & Supplies - 0.79%
Pitney Bowes Inc.		26		855
Oil & Gas Equipment & Services - 1.66%
Schlumberger Limited		23		1,804
Oil & Gas Exploration & Production - 0.62%
XTO Energy Inc.		14		670
Other Diversified Financial Services - 1.76%
J.P. Morgan Chase & Co.		41		1,905
Pharmaceuticals - 4.84%
Abbott Laboratories		39		2,228
Allergan, Inc.		17		886
Johnson & Johnson		31		2,134
				5,248
Property & Casualty Insurance - 4.31%
Allstate Corporation (The)		32		1,495
Berkshire Hathaway Inc., Class B (A)		- -*		1,538
Travelers Companies, Inc. (The)		36		1,636
				4,669
Regional Banks - 1.09%
Synovus Financial Corp.	114			1,183
Semiconductor Equipment - 0.99%
Applied Materials, Inc.		71		1,075
Semiconductors - 1.50%
Microchip Technology Incorporated		55		1,631
Soft Drinks - 3.16%
Coca-Cola Company (The)		22		1,164
PepsiCo, Inc.		32		2,259
				3,423
Systems Software - 1.15%
Microsoft Corporation		47		1,247
Tobacco - 0.93%
Philip Morris International Inc.		21		1,005
TOTAL COMMON STOCKS - 61.80%			$	66,998
(Cost: $57,471)

CORPORATE DEBT SECURITIES	Principal
Banking - 0.24%
Wells Fargo Bank, N.A.,
7.550%, 6-21-10		$ 250		259
Electric - 0.53%
Hydro-Quebec,
8.000%, 2-1-13		500		580
Food Processors - 1.30%
Archer-Daniels-Midland Company,
7.000%, 2-1-31		700		673
Cargill, Inc.,
6.375%, 6-1-12 (B)		400		407
Unilever Capital Corporation,
5.900%, 11-15-32		350		331
				1,411
Life Insurance - 0.41%
StanCorp Financial Group, Inc.,
6.875%, 10-1-12		450		441
Other Non-Agency REMIC/CMO - 0.02%
Banco Hipotecario Nacional:
7.916%, 7-25-09 (C)		7		- -*
8.000%, 3-31-11 (C)(D)		98		25
				25
TOTAL CORPORATE DEBT SECURITIES - 2.50%			$	2,716
(Cost: $2,772)
UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS
Mortgage-Backed Obligations
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
6.000%, 9-1-17		293		301
5.000%, 1-1-18		337		338
5.500%, 4-1-18		204		208
6.500%, 10-1-28		116		119
6.500%, 2-1-29		23		24
7.000%, 5-1-31		23		24
7.500%, 5-1-31		38		41
7.000%, 7-1-31		36		38
7.000%, 9-1-31		53		56
7.000%, 9-1-31		36		38

7.000%, 11-1-31		120		127
7.000%, 2-1-32		136		144
7.000%, 2-1-32		77		82
6.500%, 2-1-32		138		144
6.500%, 3-1-32		38		39
7.000%, 3-1-32		82		87
7.000%, 6-1-32		27		29
7.000%, 7-1-32		144		152
6.500%, 8-1-32		60		62
6.000%, 9-1-32		524		533
6.500%, 9-1-32		123		128
5.500%, 5-1-33		152		152
5.500%, 5-1-33		111		111
5.500%, 5-1-33		252		252
5.500%, 6-1-33		241		241
TOTAL UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS - 3.20%			$	3,470
(Cost: $3,471)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations
United States Treasury Bonds,
7.500%, 11-15-16		500		628
United States Treasury Notes:
4.000%, 3-15-10		800		825
4.250%, 10-15-10	2,000			2,095
3.875%, 2-15-13	1,250			1,302
3.625%, 5-15-13		750		774
4.250%, 8-15-13		900		956
4.250%, 8-15-15	3,000			3,173
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 9.00%			$	9,753
(Cost: $9,222)

SHORT-TERM SECURITIES
Commercial Paper - 17.10%
Air Products and Chemicals, Inc.,
1.500%, 10-1-08	1,941		1,941
AT&T Inc.,
2.150%, 10-3-08	3,104		3,104
Automatic Data Processing Inc.,
2.000%, 10-1-08	4,000		4,000
Campbell Soup Co.,
1.930%, 10-14-08	3,000		2,998
Pfizer Inc.,
1.800%, 10-8-08	4,000		3,998
Shell International Finance B.V. and Royal Dutch Shell plc       (Royal Dutch Shell plc),
2.260%, 10-7-08	2,500		2,499
			18,540
United States Government Obligations - 4.61%
United States Treasury Bills,
0.095%, 10-9-08	5,000		5,000
TOTAL SHORT-TERM SECURITIES - 21.71%		$	23,540
(Cost: $23,540)
TOTAL INVESTMENT SECURITIES - 98.21%		$	106,477
(Cost: $96,476)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.79%			1,939
NET ASSETS - 100.00%		$	108,416

Notes to Schedule of Investments

*Not shown due to rounding as amount is less than 500.

(A)No dividends were paid during the preceding 12 months.

(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, 2008, the total value of this security amounted to $407 or 0.38% 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, 2008, the total value of these securities amounted to $25 or 0.02% of net assets.

(D)Securities valued in good faith by the Valuation Committee appointed by the Board of Trustees.

The following acronyms are used throughout this portfolio:
ADR = American Depositary Receipts
CMO = Collateralized Mortgage Obligation
REMIC = Real Estate Mortgage Investment Conduit

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY BALANCED FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $96,476)	$	106,477
Cash		2
Receivables:
Fund shares sold		1,982
Dividends and interest		235
Prepaid and other assets		25
Total assets		108,721
LIABILITIES
Payable to Fund shareholders		152
Accrued management fee		61
Accrued distribution and service fees		36
Accrued shareholder servicing		25
Accrued accounting services fee		4
Other		27
Total liabilities		305
Total net assets	$	108,416
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	97,220
Accumulated undistributed income :
Accumulated undistributed net investment income		6
Accumulated undistributed net realized gain on                 investment transactions		1,189
Net unrealized appreciation in value of investments		10,001
Net assets applicable to outstanding units of capital	$	108,416
Net asset value per share (net assets divided by shares outstanding):
Class A	$15.52
Class B	$15.47
Class C	$15.49
Class E	$15.53
Class I	$15.53
Class Y	$15.52
Capital shares outstanding:
Class A		3,974
Class B		200
Class C		785
Class E		7
Class I		7
Class Y		2,015

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY BALANCED FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                            (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $15)	$	649
Interest and amortization		604
Total income		1,253
Expenses:
Investment management fee		356
Distribution and service fees:
Class A		80
Class B		15
Class C		28
Class E		––	*
Class Y		36
Shareholder servicing:
Class A		82
Class B		6
Class C		6
Class E		––	*
Class I		––	*
Class Y		22
Accounting services fee		29
Audit fees		11
Custodian fees		5
Legal fees		1
Other		51
Total expenses		728
Net investment income		525
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized net gain on investments		2,036
Unrealized depreciation in value of investments during the period		(9,436	)
Net loss on investments		(7,400	)
Net decrease in net assets resulting from operations	$	(6,875	)

*Not shown due to rounding.

See Accompanying 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,
	2008				2008
INCREASE IN NET ASSETS
Operations:
Net investment income		$	525		$	1,116
Realized net gain on investments			2,036			1,341
Unrealized appreciation (depreciation)			(9,436	)		4,030
Net increase (decrease) in net assets                       resulting from operations			(6,875	)		6,487
Distributions to shareholders from:(1)
Net investment income:
Class A			(350	)		(740	)
Class B			(3	)		(7	)
Class C			(15	)		(15	)
Class E			(1	)		(1	)
Class I			(1	)		(2	)
Class Y			(173	)		(353	)
Realized gains on investment transactions:
Class A			(––	)		(1,854	)
Class B			(––	)		(85	)
Class C			(––	)		(100	)
Class E			(––	)		(3	)
Class I			(––	)		(3	)
Class Y			(––	)		(794	)
			(543	)		(3,957	)
Capital share transactions			19,137			827
Total increase			11,719			3,357
NET ASSETS
Beginning of period			96,697			93,340
End of period		$	108,416		$	96,697
Accumulated undistributed net investment income		$	6		$	24

(1)See "Financial Highlights" on pages 191 - 196.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				9-30-03
Net asset value,     beginning of period		$	16.64		$	16.18		$	15.22		$	14.00		$	13.35		$	12.18		$	10.54
Income (loss) from     investment operations:
Net investment         income			0.09			0.20			0.16			0.15			0.14			0.05			0.16
Net realized and         unrealized gain         (loss) on         investments			(1.12	)		0.97			0.98			1.21			0.65			1.16			1.64
Total from investment     operations			(1.03	)		1.17			1.14			1.36			0.79			1.21			1.80
Less distributions from:
Net investment         income			(0.09	)		(0.20	)		(0.18	)		(0.14	)		(0.14	)		(0.04	)		(0.16	)
Capital gains			(0.00	)		(0.51	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.09	)		(0.71	)		(0.18	)		(0.14	)		(0.14	)		(0.04	)		(0.16	)
Net asset value,     end of period		$	15.52		$	16.64		$	16.18		$	15.22		$	14.00		$	13.35		$	12.18
Total return(1)			- -6.22	%		7.05	%		7.53	%		9.71	%		5.90	%		10.06	%		17.17	%(2)
Net assets, end of     period (in millions)		$62			$63			$59			$57			$54			$52			$38
Ratio of expenses to     average net assets     including expense     waiver			1.40	%(3)		1.38	%		1.39	%		1.42	%		1.53	%		1.52	%(3)(4)		1.29	%
Ratio of net investment     income to average     net assets including     expense waiver			1.07	%(3)		1.16	%		1.03	%		1.00	%		1.02	%		0.86	%(3)(4)		1.41	%
Ratio of expenses to     average net assets     excluding expense     waiver			1.40	%(3)(5)		1.38	%(5)		1.39	%(5)		1.42	%(5)		1.53	%(5)		1.57	%(3)(4)		1.62	%
Ratio of net investment     income to average     net assets excluding     expense waiver			1.07	%(3)(5)		1.16	%(5)		1.03	%(5)		1.00	%(5)		1.02	%(5)		0.81	%(3)(4)		1.08	%
Portfolio turnover rate			16	%		9	%		23	%		49	%		37	%		29	%		110	%

(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 Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,       beginning of period		$	16.60		$	16.14		$	15.18		$	13.98		$	13.33		$	12.96
Income (loss) from       investment operations:
Net investment income			0.01			0.04			0.01			0.00			0.01			0.01
Net realized and             unrealized gain (loss)             on investments			(1.12	)		0.97			0.98			1.21			0.64			0.39
Total from investment       operations			(1.11	)		1.01			0.99			1.21			0.65			0.40
Less distributions from:
Net investment income			(0.02	)		(0.04	)		(0.03	)		(0.01	)		(0.00	)*		(0.03	)
Capital gains			(0.00	)		(0.51	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.02	)		(0.55	)		(0.03	)		(0.01	)		(0.00	)*		(0.03	)
Net asset value, end of period		$	15.47		$	16.60		$	16.14		$	15.18		$	13.98		$	13.33
Total return			- -6.72	%		6.08	%		6.49	%		8.62	%		4.90	%		3.05	%
Net assets, end of period       (in thousands)		$3,098			$2,958			$2,506			$1,995			$1,503			$338
Ratio of expenses to       average net assets			2.33	%(2)		2.30	%		2.39	%		2.41	%		2.52	%		2.76	%(2)
Ratio of net investment income       (loss) to average net assets			0.12	%(2)		0.24	%		0.03	%		0.01	%		0.06	%		- -0.42	%(2)
Portfolio turnover rate			16	%		9	%		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 Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,       beginning of period		$	16.61		$	16.15		$	15.20		$	13.98		$	13.34		$	12.96
Income (loss) from       investment operations:
Net investment income			0.04			0.07			0.04			0.03			0.03			0.02
Net realized and             unrealized gain (loss)             on investments			(1.12	)		0.97			0.97			1.20			0.63			0.39
Total from investment       operations			(1.08	)		1.04			1.01			1.23			0.66			0.41
Less distributions from:
Net investment income			(0.04	)		(0.07	)		(0.06	)		(0.01	)		(0.02	)		(0.03	)
Capital gains			(0.00	)		(0.51	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.04	)		(0.58	)		(0.06	)		(0.01	)		(0.02	)		(0.03	)
Net asset value, end of period		$	15.49		$	16.61		$	16.15		$	15.20		$	13.98		$	13.34
Total return		- -6.54		%		6.27	%		6.67	%		8.80	%		4.98	%		3.13	%
Net assets, end of period       (in thousands)	$12,152				$4,019			$3,018			$1,996			$898			$301
Ratio of expenses to       average net assets			2.11	%(2)		2.11	%		2.16	%		2.25	%		2.38	%		2.43	%(2)
Ratio of net investment income       (loss) to average net assets			0.27	%(2)		0.42	%		0.27	%		0.21	%		0.19	%		- -0.12	%(2)
Portfolio turnover rate			16	%		9	%		23	%		49	%		37	%		29	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(2) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	16.65		$	16.21
Income (loss) from investment operations:
Net investment income			0.12			0.24
Net realized and unrealized gain (loss) on investments			(1.13	)		0.94
Total from investment operations			(1.01	)		1.18
Less distributions from:
Net investment income			(0.11	)		(0.23	)
Capital gains			(0.00	)		(0.51	)
Total distributions			(0.11	)		(0.74	)
Net asset value, end of period		$	15.53		$	16.65
Total return (3)			- -6.10	%		7.11	%
Net assets, end of period (in thousands)		$101			$107
Ratio of expenses to average net assets			1.16	%(4)		1.15	%(4)
Ratio of net investment income to average net assets			1.32	%(4)		1.39	%(4)
Portfolio turnover rate			16	%		9	%(5)

(1)Class is closed.

(2)Commencement of operations of the class.

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

(4)Annualized.

(5)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	16.65		$	16.21
Income (loss) from investment operations:
Net investment income			0.12			0.26
Net realized and unrealized gain (loss) on investments			(1.12	)		0.95
Total from investment operations			(1.00	)		1.21
Less distributions from:
Net investment income			(0.12	)		(0.26	)
Capital gains			(0.00	)		(0.51	)
Total distributions			(0.12	)		(0.77	)
Net asset value, end of period		$	15.53		$	16.65
Total return			- -6.04	%		7.25	%
Net assets, end of period (in thousands)		$101			$107
Ratio of expenses to average net assets			1.02	%(2)		1.04	%(2)
Ratio of net investment income to average net assets			1.45	%(2)		1.51	%(2)
Portfolio turnover rate			16	%		9	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the 12 months ended March 31, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,       beginning of period		$	16.64		$	16.18		$	15.22		$	14.00		$	13.35		$	12.96
Income (loss) from       investment operations:
Net investment income			0.10			0.22			0.18			0.17			0.17			0.04
Net realized and             unrealized gain (loss)             on investments			(1.12	)		0.97			0.98			1.21			0.65			0.40
Total from investment       operations			(1.02	)		1.19			1.16			1.38			0.82			0.44
Less distributions from:
Net investment income			(0.10	)		(0.22	)		(0.20	)		(0.16	)		(0.17	)		(0.05	)
Capital gains			(0.00	)		(0.51	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.10	)		(0.73	)		(0.20	)		(0.16	)		(0.17	)		(0.05	)
Net asset value, end of period		$	15.52		$	16.64		$	16.18		$	15.22		$	14.00		$	13.35
Total return			- -6.18	%		7.16	%		7.67	%		9.89	%		6.16	%		3.43	%
Net assets, end of period       (in millions)		$31			$27			$28			$38			$44			$53
Ratio of expenses to       average net assets			1.28	%(2)		1.28	%		1.26	%		1.26	%		1.30	%		1.36	%(2)
Ratio of net investment income       to average net assets			1.19	%(2)		1.27	%		1.16	%		1.15	%		1.25	%		0.97	%(2)
Portfolio turnover rate			16	%		9	%		23	%		49	%		37	%		29	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF
IVY GLOBAL NATURAL RESOURCES FUND

Portfolio Highlights

On September 30, 2008, Ivy Global Natural Resources Fund had net assets totaling $5,568,222
(in thousands) invested in a diversified portfolio of:

54.43%	Foreign Common Stocks
42.19%	Domestic Common Stocks
3.38%	Cash and Cash Equivalents, Corporate Debt Securities and Preferred Stocks

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:

Country Weightings

North America	$	49.94
United States	$	42.38
Canada	$	7.56
South America	$	18.65
Brazil	$	17.70
Other South America(1)	$	0.95
Europe	$	17.21
Russia	$	8.13
Other Europe(2)	$	5.17
Norway	$	3.91
Pacific Basin(3)	$	4.66
Bahamas/Caribbean	$	3.99
Cayman Islands	$	3.66
Other Bahamas/Caribbean(4)	$	0.33
Other(5)	$	3.02
Middle East(6)	$	1.83
Cash and Cash Equivalents	$	0.70

(1)Includes $0.95 Chile.

(2)Includes $0.69 France, $2.56 Germany, $0.33 Luxembourg, $0.33 Netherlands and
$1.26 United Kingdom.

(3)Includes $0.59 Australia, $1.74 China, $0.23 Hong Kong, $0.71 Indonesia, $0.19 Philippines,
$0.43 Singapore, $0.09 Taiwan and $0.68 Thailand.

(4)Includes $0.33 Bermuda.

(5)Includes $2.41 Panama and $0.61 South Africa.

(6)Includes $0.26 Cyprus, $1.10 Israel and $0.47 Kazakhstan.

Sector Weightings

Energy Stocks	$	45.76
Materials Stocks	$	32.25
Industrials Stocks	$	11.84
Utilities Stocks	$	4.67
Information Technology Stocks	$	3.41
Miscellaneous Stocks(7)	$	1.27
Cash and Cash Equivalents and Corporate Debt Securities	$	0.80

(7)Includes $0.87 Financials Stocks and $0.40 Consumer Staples Stocks.

The Investments of Ivy Global Natural Resources Fund
September 30, 2008
(In Thousands)                                                                                                                       (Unaudited)
COMMON STOCKS		Shares		Value
Australia - 0.59%
BHP Billiton Limited, ADR			195	$	10,133
Paladin Energy Ltd (A)(B)			6,206		19,767
Sino Gold Mining Limited (A)(B)			328		1,049
Sino Gold Mining Limited (A)(B)(C)			612		1,959
					32,908
Bermuda - 0.33%
Bunge Limited			250		15,795
Katanga Mining Limited (A)(B)			546		2,579
					18,374
Brazil - 15.21%
Aracruz Celulose S.A., ADR			300		11,013
Companhia de Saneamento Basico do Estado de       Sao Paulo - SABESP (B)			490		6,790
Companhia de Saneamento Basico do Estado de       Sao Paulo - SABESP, ADR			490		13,892
Companhia de Saneamento de Minas Gerais (B)			4,410		46,814
Companhia Energetica de Minas Gerais - CEMIG, ADR			2,940		58,035
Companhia Siderurgica Nacional, ADR			1,100		23,386
Companhia Vale do Rio Doce, ADR			11,773		208,380
CPFL Energia S.A. (B)			830		15,611
Petroleo Brasileiro S.A.- PETROBRAS, ADR			8,300		310,586
Suzano Bahia Sul Papel E Celulose S.A. (B)			9,700		83,751
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS (B)			1,354		27,285
Votorantim Celulose e Papel S.A. (B)			1,000		15,361
Votorantim Celulose e Papel S.A., ADR			1,700		26,197
					847,101
Canada - 7.56%
Aquiline Resources Inc. (A)(B)			2,016		7,900
ARISE Technologies Corporation (A)(B)			5,000		4,134
Atacama Minerals Corp. (A)(B)(D)			5,880		2,818
Canadian Natural Resources Limited (A)(B)			500		34,296
First Quantum Minerals Ltd. (B)			655		24,633
MGM Energy Corp. (A)(B)			12,543		5,775
Pason Systems Inc. (B)			1,000		12,309
Potash Corporation of Saskatchewan Inc.			2,300		303,623
Sino-Forest Corporation (A)(B)(C)			2,011		25,336
					420,824
Cayman Islands - 3.66%
China High Speed Transmission Equipment Group Co., Ltd. (B)			13,700		25,074
JA Solar Holdings Co., Ltd., ADR (A)			5,500		57,997
Noble Corporation			1,225		53,777
Subsea 7 Inc. (A)(B)			2,940		39,793
Suntech Power Holdings Co., Ltd., ADR (A)			750		26,903
					203,544
Chile - 0.95%
Sociedad Quimica y Minera de Chile S.A., ADR			2,100		52,941
China - 1.74%
Yingli Green Energy Holding Company Limited, ADR (A)(D)			8,800		96,976
Cyprus - 0.26%
Buried Hill Energy (Cyprus) Public Company Limited (A)(B)(E)			3,630		14,520
France - 0.69%
Saft Groupe SA (B)			150		5,940
Vallourec (B)			150		32,367
					38,307
Germany - 2.56%
Q-Cells AG (A)(B)			250		21,253
SGL Carbon AG (A)(B)			1,960		77,864
Wacker Chemie AG (A)(B)			300		43,342
					142,459
Hong Kong - 0.23%
Fushan International Energy Group Limited (A)(B)			6,850		2,644
Guangdong Investment Limited (B)			39,200		9,258
Harbin Power Equipment Company Limited (A)(B)			1,165		835
					12,737
Indonesia - 0.71%
PT Bumi Resources Tbk (B)			24,102		8,016
PT Indo Tambangraya Megah Tbk. (A)(B)			3,210		7,398
PT Perusahaan Perkebunan London Sumatra       Indonesia Tbk (A)(B)			8,716		3,230
PT Tambang Batubara Bukit Asam (Persero) Tbk (A)(B)			21,500		21,074
					39,718
Israel - 1.10%
Israel Chemicals Ltd. (A)(B)			4,250		61,081
Kazakhstan - 0.47%
Joint Stock Company KazMunaiGas Exploration       Production, GDR (B)			1,650		26,096
Luxembourg - 0.33%
Tenaris S.A., ADR			500		18,645
Netherlands - 0.33%
AMG Advanced Metallurgical Group N.V. (A)(B)			450		18,409
Norway - 3.91%
Aker Solutions ASA (B)			3,425		55,462
Renewable Energy Corporation ASA (A)(B)			6,850		126,976
SeaDrill Limited (B)			1,700		35,221
					217,659
Panama - 2.41%
McDermott International, Inc. (A)			5,250		134,138
Philippines - 0.19%
Energy Development Corporation (B)			98,000		8,536
Manila Water Company, Inc. (A)(B)			5,850		2,089
					10,625
Russia - 8.13%
OAO LUKOIL, ADR			525		31,303
OAO TMK, GDR (B)			980		24,812
Open Joint Stock Company Gazprom, ADR (B)			9,500		303,586
Uralkali Group, GDR (A)(B)			2,940		93,049
					452,750
Singapore - 0.43%
Indofood Agri Resources Ltd. (A)(B)			6,115		3,400
Straits Asia Resources Limited (A)(B)			19,600		20,598
					23,998
South Africa - 0.61%
Impala Platinum Holdings Limited (B)			1,673		34,155
Taiwan - 0.09%
Epistar Corporation (A)(B)			3,888		5,276
Thailand - 0.68%
Banpu Public Company Limited (A)(B)			3,250		28,619
Banpu Public Company Limited, Registered Shares (A)(B)			1,000		8,959
					37,578
United Kingdom - 1.26%
Eurasian Natural Resources Corporation PLC (A)(B)			3,000		27,318
Pangea DiamondFields plc (A)(B)(C)			2,150		516
Randgold Resources Limited, ADR			1,030		42,163
					69,997
United States - 42.19%
Allegheny Technologies Incorporated			3,008		88,889
Boardwalk Pipeline Partners, LP			735		15,141
Cameron International Corporation (A)			2,130		82,090
Celanese Corporation, Series A			1,960		54,704
Commercial Metals Company			1,355		22,886
Complete Production Services, Inc. (A)			2,850		57,371
Copano Energy, L.L.C., Units			1,000		24,490
Cytec Industries Inc.			400		15,564
DCP Midstream Partners, LP			225		3,807
Denbury Resources Inc. (A)			500		9,520
Domtar Corporation (A)			22,040		101,383
Enbridge Energy Partners, L.P.			165		6,544
Energy Recovery, Inc. (A)			980		9,266
Energy Transfer Equity, L.P.			900		19,575
Energy Transfer Partners, L.P.			1,500		55,245
Enterprise Products Partners L.P.			1,000		25,770
First Solar, Inc. (A)			506		95,629
FMC Corporation			200		10,278
Foster Wheeler Ltd. (A)			335		12,116
Freeport-McMoRan Copper & Gold Inc., Class B			850		48,323
GrafTech International Ltd. (A)			5,500		83,105
Halliburton Company (F)			5,250		170,048
Hess Corporation			1,030		84,542
Intrepid Potash, Inc. (A)			500		15,070
Magellan Midstream Partners, L.P. (A)			116		3,768
MarkWest Energy Partners, L.P.			375		9,480
Massey Energy Company (D)			5,000		178,350
Mosaic Company			2,906		197,693
National Oilwell Varco, Inc. (A)			2,500		125,575
Peabody Energy Corporation			3,300		148,500
Petrohawk Energy Corporation (A)			11,000		237,930
Plains All American Pipeline, L.P.			800		31,696
Regency Energy Partners LP			500		9,132
Rockwood Holdings, Inc. (A)			3,100		79,546
Shaw Group Inc. (The) (A)			750		23,048
Smith International, Inc.			735		43,100
Targa Resources Partners LP			400		6,836
Transocean Inc.			980		107,643
Verso Paper Holdings LLC (D)			3,920		10,349
Williams Partners L.P.			980		25,333
					2,349,335
TOTAL COMMON STOCKS - 96.62%				$	5,380,151
(Cost: $6,562,652)
PREFERRED STOCKS
Brazil - 2.39%
Bradespar S.A. (B)			3,530		48,009
CESP - Companhia Energetica de Sao Paulo (B)			5,219		45,228
Companhia Energetica de Minas Gerais - CEMIG (B)			2,000		39,203
					132,440
United States - 0.19%
Konarka Technologies, Inc., 8.0% Cumulative (A)(E)			3,500		10,850
TOTAL PREFERRED STOCKS - 2.58%				$	143,290
(Cost: $171,503)
CORPORATE DEBT SECURITIES	Principal
Brazil
Bahia Sul Celulose S.A.,
8.614%, 12-1-12 (C)(G)(H)	BRL10,692				5,619
TOTAL CORPORATE DEBT SECURITIES - 0.10%				$	5,619
(Cost: $5,165)

SHORT-TERM SECURITIES
Repurchase Agreements
J.P. Morgan Securities, Inc., Repurchase Agreement       dated 9-30-08 to be repurchased at $29,762,
0.050%, 10-1-08 (I)	$	29,762		29,762
TOTAL SHORT-TERM SECURITIES - 0.53%			$	29,762
(Cost: $29,762)
TOTAL INVESTMENT SECURITIES - 99.83%			$	5,558,822
(Cost: $6,769,082)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.17%				9,400
NET ASSETS - 100.00%			$	5,568,222

Notes to Schedule of Investments
The following forward currency contracts were outstanding at September 30, 2008:
	Type	Currency	Currency Amount Covered by Contract	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
	Sell	British Pound	1,925	10-30-08		$	58		$	-
	Sell	British Pound	1,200	11-6-08			193			-
	Sell	British Pound	530	12-18-08			-			7
	Sell	Euro	5,000	10-30-08			766			-
	Sell	Euro	1,000	11-6-08			81			-
	Sell	Euro	28,000	12-4-08			737			-
	Sell	Norwegian Krone	12,000	10-9-08			291			-
	Sell	Norwegian Krone	75,000	10-16-08			2,025			-
	Sell	Norwegian Krone	75,000	10-23-08			1,872			-
	Sell	Norwegian Krone	75,000	10-30-08			1,707			-
	Sell	Norwegian Krone	110,000	11-6-08			2,362			-
	Sell	Norwegian Krone	225,000	11-20-08			2,990			-
	Sell	Norwegian Krone	139,600	12-4-08			1,442			-
	Sell	South African Rand	69,000	10-8-08			538			-
	Sell	South African Rand	92,000	10-22-08			828			-
	Sell	South African Rand	70,000	10-29-08			701			-
	Sell	South African Rand	36,000	11-5-08			252			-
						$	16,843		$	7
(A)No dividends were paid during the preceding 12 months.
(B)Listed on an exchange outside the United States.

(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, 2008, the total value of these securities amounted to $33,430 or 0.60% of net assets.
(D)Deemed to be an affiliate due to the Fund having at least 5% of the voting securities.
(E)Restricted security. At September 30, 2008, the following restricted securities were owned:
	Security	Acquisition Date	Shares	Cost		Market Value
	Buried Hill Energy (Cyprus) Public Company Limited:	5-1-07	3,335	$	5,003	$	13,340
		4-17-08	295		1,180		1,180
	Konarka Technologies, Inc.	8-31-07	3,500		10,850		10,850
				$	17,033	$	25,370
The total value of these securities represented approximately 0.46% of net assets at September 30, 2008.
(F)Security serves as cover for the following written option outstanding at September 30, 2008:

Underlying Security	Contracts Subject to Call	Expiration Month/ Exercise Price	Premium Received			Market Value
Halliburton Company	10	October/55.0		$	1,832		$	20

(G)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

(H)Principal amounts are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real)

(I)Collateralized by $26,699 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $30,156.

Securities with an aggregate market value of $1,216,495, representing 21.85% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees.

The following acronyms are used throughout this portfolio:
ADR = American Depositary Receipts
GDR = Global Depositary Receipts

	Market Sector Diversification
	(as a % of net assets)
	Energy	45.76%
	Materials	32.35%
	Industrials	11.84%
	Utilities	4.67%
	Information Technology	3.41%
	Financials	0.87%
	Consumer Staples	0.40%
	Other+	0.70%
+Includes cash and cash equivalents and other assets and liabilities
See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY GLOBAL NATURAL RESOURCES FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value:            Securities (cost - $6,371,290)	$	5,270,329
Affiliated company (cost - $397,792)		288,493
		5,558,822
Cash		54,401
Unrealized appreciation on forward currency contracts		16,843
Cash denominated in foreign currencies (cost - $5,694)		5,811
Receivables:
Investment securities sold		390,371
Fund shares sold		22,302
Dividends and interest		9,469
Prepaid and other assets		119
Total assets		6,058,138
LIABILITIES
Payable for investment securities purchased		463,446
Payable to Fund shareholders		15,207
Accrued management fee		4,366
Accrued distribution and service fees		3,086
Accrued shareholder servicing		2,633
Outstanding written options at value (premium received - $1,832)		20
Accrued accounting services fee		15
Accrued administrative fee		8
Unrealized depreciation on forward currency contracts		7
Other		1,128
Total liabilities		489,916
Total net assets	$	5,568,222

NET ASSETS
Capital paid in (shares authorized - unlimited)	$	6,340,776
Accumulated undistributed income (loss):
Accumulated net investment loss		(98,272	)
Accumulated net realized gain on investment transactions		516,859
Net unrealized depreciation in value of investments	(1,191,141		)
Net assets applicable to outstanding units of capital	$	5,568,222
Net asset value per share (net assets divided by shares outstanding):
Class A	$25.51
Class B	$23.84
Class C	$23.29
Class E	$25.36
Class I	$25.70
Class R	$25.32
Class Y	$25.59
Advisor Class	$25.30
Capital shares outstanding:
Class A		133,923
Class B		9,387
Class C		48,907
Class E		123
Class I		7,919
Class R		974
Class Y		21,764
Advisor Class		10

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY GLOBAL NATURAL RESOURCES FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                            (Unaudited)

INVESTMENT LOSS
Income:
Dividends (net of foreign withholding taxes of $4,157)	$	56,231
Dividends from affiliates		120
Interest and amortization (net of foreign withholding taxes of $42)		1,020
Total income		57,371
Expenses:
Investment management fee		33,931
Distribution and service fees:
Class A		6,694
Class B		1,748
Class C		8,973
Class E		5
Class R		78
Class Y		1,097
Shareholder servicing:
Class A		5,382
Class B		403
Class C		1,578
Class E		21
Class I		116
Class R		31
Class Y		673
Advisor Class		––	*
Custodian fees		1,010
Accounting services fee		87
Legal fees		65
Administrative fee		50
Audit fees		32
Other		1,369
Total		63,343
Less expenses in excess of limit		(211	)
Total expenses		63,132
Net investment loss		(5,761	)

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Realized net loss on securities**	$	(281,075	)
Realized net gain on forward currency contracts		62,182
Realized net gain on written options		6,206
Realized net loss on foreign currency transactions		(5,934	)
Realized net loss on investments		(218,621	)
Unrealized depreciation in value of securities during the period***		(2,325,002	)
Unrealized appreciation in value of forward currency contracts            during the period		16,574
Unrealized appreciation in value of written options during the period		1,812
Unrealized appreciation in value of foreign currency exchange            transactions during the period		455
Unrealized depreciation in value of investments during the period		(2,306,161	)
Net loss on investments		(2,524,782	)
Net decrease in net assets resulting from operations	$	(2,530,543	)

*Not shown due to rounding.
**Includes $3,662 of realized loss on affiliated securities.

***Includes $120,539 of unrealized depreciation on affiliated securities.

See Accompanying 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,
	2008				2008
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss		$	(5,761	)	$	(3,673	)
Realized net gain (loss) on investments			(218,621	)		1,263,117
Unrealized appreciation (depreciation)		(2,306,161		)		170,936
Net increase (decrease) in net assets                       resulting from operations		(2,530,543		)		1,430,380
Distributions to shareholders from: (1)
Net investment income:
Class A			(––	)		(65,248	)
Class B			(––	)		(695	)
Class C			(––	)		(7,927	)
Class E			(––	)		(18	)
Class I			(––	)		(846	)
Class R			(––	)		(226	)
Class Y			(––	)		(11,854	)
Advisor Class			(––	)		(7	)
Realized gains on investment transactions:
Class A			(––	)		(404,076	)
Class B			(––	)		(30,582	)
Class C			(––	)		(149,863	)
Class E			(––	)		(168	)
Class I			(––	)		(3,528	)
Class R			(––	)		(1,246	)
Class Y			(––	)		(56,028	)
Advisor Class			(-	)		(30	)
			(-	)		(732,342	)
Capital share transactions			(75,005	)		2,390,679
Total increase (decrease)		(2,605,548		)		3,088,717
NET ASSETS
Beginning of period			8,173,770			5,085,053
End of period		$	5,568,222		$	8,173,770
Accumulated net investment loss		$	(98,272	)	$	(86,577	)

(1)See "Financial Highlights" on pages 211 - 218.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	36.53		$	31.67		$	30.13		$	22.65		$	17.63		$	16.69		$	11.50
Income (loss) from       investment operations:
Net investment             income (loss)			0.01	(1)		0.05	(1)		0.17	(1)		0.12			(0.04	)		0.03			0.10
Net realized and             unrealized gain             (loss) on             investments		(11.03		)(1)		8.54	(1)		4.40	(1)		8.88			5.06			0.91			5.14
Total from investment       operations		(11.02		)		8.59			4.57			9.00			5.02			0.94			5.24
Less distributions from:
Net investment             income			(0.00	)		(0.52	)		(0.16	)		(0.00	)		(0.00	)*		(0.00	)		(0.05	)
Capital gains			(0.00	)		(3.21	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(3.73	)		(3.03	)		(1.52	)		(0.00	)*		(0.00	)		(0.05	)
Net asset value,       end of period		$	25.51		$	36.53		$	31.67		$	30.13		$	22.65		$	17.63		$	16.69
Total return(2)		- -30.17		%		26.65	%		15.47	%		40.76	%		28.50	%		5.63	%		45.61	%
Net assets, end of period       (in millions)		$3,417			$5,168			$3,360			$2,343			$895			$192			$95
Ratio of expenses to       average net assets			1.32	%(3)		1.27	%		1.31	%		1.40	%		1.55	%		1.65	%(3)		1.89	%
Ratio of net investment       income (loss) to       average net assets			0.03	%(3)		0.14	%		0.57	%		0.73	%		- -0.52	%		- -0.80	%(3)		- -0.66	%
Portfolio turnover rate			114	%		142	%		106	%		104	%		110	%		29	%		58	%

*Not shown due to rounding.

(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 Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04					12-31-03
Net asset value,       beginning of period		$	34.27		$	29.78		$	28.57		$	21.72		$	17.04		$	16.16			$	11.19
Income (loss) from       investment operations:
Net investment             income (loss)		(0.13		)(1)		(0.23	)(1)		(0.05	)		0.03			(0.04	)		(0.01	)			(0.06	)
Net realized and             unrealized gain             (loss) on             investments		(10.30		)(1)		8.00	(1)		4.13			8.34			4.72			0.89				5.03
Total from investment       operations		(10.43		)		7.77			4.08			8.37			4.68			0.88				4.97
Less distributions from:
Net investment             income			(0.00	)		(0.07	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)			(0.00	)
Capital gains			(0.00	)		(3.21	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)			(0.00	)
Total distributions			(0.00	)		(3.28	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)			(0.00	)
Net asset value,       end of period		$	23.84		$	34.27		$	29.78		$	28.57		$	21.72		$	17.04			$	16.16
Total return		- -30.44		%		25.64	%		14.55	%		39.59	%		27.46	%		5.45	%			44.42	%
Net assets, end of period       (in millions)		$224			$345			$272			$223			$110			$30			$21
Ratio of expenses to       average net assets			2.09	%(2)		2.07	%		2.12	%		2.23	%		2.39	%		2.42	%(2)			2.90	%
Ratio of net investment       loss to average       net assets			- -0.74	%(2)		- -0.64	%		- -0.24	%		- -0.10	%		- -1.35	%		- -1.59	%(2)			- -1.54	%
Portfolio turnover rate			114	%		142	%		106	%		104	%		110	%		29	%			58	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	33.47		$	29.19		$	28.04		$	21.32		$	16.72		$	15.86		$	10.97
Income (loss) from       investment operations:
Net investment             income (loss)		(0.12		)(1)		(0.20	)(1)		(0.03	)		0.02			(0.09	)		0.00			0.04
Net realized and             unrealized gain             (loss) on             investments		(10.06		)(1)		7.86	(1)		4.05			8.22			4.69			0.86			4.85
Total from investment       operations		(10.18		)		7.66			4.02			8.24			4.60			0.86			4.89
Less distributions from:
Net investment             income			(0.00	)		(0.17	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(3.21	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(3.38	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)
Net asset value,       end of period		$	23.29		$	33.47		$	29.19		$	28.04		$	21.32		$	16.72		$	15.86
Total return		- -30.41		%		25.72	%		14.65	%		39.72	%		27.51	%		5.42	%		44.58	%
Net assets, end of period       (in millions)		$1,139			$1,749			$1,138			$801			$312			$64			$34
Ratio of expenses to       average net assets			2.03	%(2)		1.99	%		2.04	%		2.15	%		2.31	%		2.38	%(2)		2.65	%
Ratio of net investment       loss to average       net assets			- -0.69	%(2)		- -0.58	%		- -0.16	%		- -0.02	%		- -1.28	%		- -1.54	%(2)		- -1.48	%
Portfolio turnover rate			114	%		142	%		106	%		104	%		110	%		29	%		58	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	36.41		$	32.00
Income (loss) from investment operations:
Net investment income (loss)			(0.10	)(2)		0.03
Net realized and unrealized gain (loss)             on investments		(10.95		)(2)		7.94
Total from investment operations		(11.05		)		7.97
Less distributions from:
Net investment income			(0.00	)		(0.35	)
Capital gains			(0.00	)		(3.21	)
Total distributions			(0.00	)		(3.56	)
Net asset value, end of period		$	25.36		$	36.41
Total return(3)		- -30.35		%		24.42	%
Net assets, end of period (in millions)		$3			$3
Ratio of expenses to average net assets       including expense waiver			1.87	%(4)		2.29	%(4)
Ratio of net investment loss to average net       assets including expense waiver			- -0.53	%(4)		- -1.02	%(4)
Ratio of expenses to average net assets       excluding expense waiver			2.22	%(4)		2.29	%(4)(5)
Ratio of net investment loss to average net       assets excluding expense waiver			- -0.88	%(4)		- -1.02	%(4)(5)
Portfolio turnover rate			114	%		142	%(6)

(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.

(6)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	36.74		$	32.16
Income (loss) from investment operations:
Net investment income			0.06	(2)		0.05	(2)
Net realized and unrealized gain (loss) on investments		(11.10		)(2)		8.51	(2)
Total from investment operations		(11.04		)		8.56
Less distributions from:
Net investment income			(0.00	)		(0.77	)
Capital gains			(0.00	)		(3.21	)
Total distributions			(0.00	)		(3.98	)
Net asset value, end of period		$	25.70		$	36.74
Total return		- -30.05		%		26.14	%
Net assets, end of period (in millions)		$203			$71
Ratio of expenses to average net assets			1.00	%(3)		1.00	%(3)
Ratio of net investment income to average net assets			0.36	%(3)		0.30	%(3)
Portfolio turnover rate			114	%		142	%(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, 2008.

See Accompanying 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 March 31,						For the period from 12-29-05(1) to
	9-30-08				2008			2007			3-31-06
Net asset value,       beginning of period		$	36.30		$	31.62		$	30.10		$	26.11
Income (loss) from       investment operations:
Net investment income			(0.04	)(2)		0.24			0.05	(2)		0.06
Net realized and             unrealized gain (loss)             on investments		(10.94		)(2)		8.23			4.44	(2)		3.93
Total from investment operations		(10.98		)		8.47			4.49			3.99
Less distributions from:
Net investment income			(0.00	)		(0.58	)		(0.10	)		(0.00	)
Capital gains			(0.00	)		(3.21	)		(2.87	)		(0.00	)
Total distributions			(0.00	)		(3.79	)		(2.97	)		(0.00	)
Net asset value, end of period		$	25.32		$	36.30		$	31.62		$	30.10
Total return		- -30.25		%		26.31	%		15.20	%		15.28	%
Net assets, end of period       (in thousands)	$24,657			$24,623				$3,893			$115
Ratio of expenses to       average net assets			1.54	%(3)		1.55	%		1.58	%		1.69	%(3)
Ratio of net investment income       (loss) to average net assets			- -0.20	%(3)		- -0.22	%		0.23	%		0.82	%(3)
Portfolio turnover rate			114	%		142	%		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 Accompanying 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
	9-30-08					2008			2007			2006			2005	3-31-04				12-31-03
Net asset value,       beginning of period		$	36.62		$	31.84		$	30.27		$	22.70		$	17.66		$	16.70		$	12.60
Income (loss) from       investment operations:
Net investment             income (loss)			0.03	(2)		0.17			0.21	(2)		0.24	(2)		(0.02	)		0.01			0.00
Net realized and             unrealized gain             (loss) on             investments		(11.06		)(2)		8.50			4.43	(2)		8.85	(2)		5.13			0.95			4.16
Total from investment       operations		(11.03		)		8.67			4.64			9.09			5.11			0.96			4.16
Less distributions from:
Net investment             income			(0.00	)		(0.68	)		(0.20	)		(0.00	)		(0.07	)		(0.00	)		(0.06	)
Capital gains			(0.00	)		(3.21	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(3.89	)		(3.07	)		(1.52	)		(0.07	)		(0.00	)		(0.06	)
Net asset value,       end of period		$	25.59		$	36.62		$	31.84		$	30.27		$	22.70		$	17.66		$	16.70
Total return		- -30.12		%		26.74	%		15.63	%		41.07	%		28.98	%		5.75	%		33.03	%
Net assets, end of period       (in millions)		$557			$813			$311			$116			$21			$4			$1
Ratio of expenses to       average net assets       including expense       waiver			1.20	%(3)		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%(3)		1.39	%(3)
Ratio of net investment       income (loss) to       average net assets       including expense       waiver			0.14	%(3)		0.16	%		0.66	%		0.91	%		- -0.19	%		- -0.35	%(3)		- -0.54	%(3)
Ratio of expenses to       average net assets       excluding expense       waiver			1.25	%(3)		1.26	%		1.27	%		1.35	%		1.48	%		1.63	%(3)		1.39	%(3)(4)
Ratio of net investment       income (loss) to       average net assets       excluding expense       waiver			0.09	%(3)		0.11	%		0.59	%		0.76	%		- -0.47	%		- -0.79	%(3)		- -0.54	%(3)(4)
Portfolio turnover rate			114	%		142	%		106	%		104	%		110	%		29	%		58	%(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 Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				12-31-03
Net asset value,       beginning of period		$	36.16		$	31.48		$	29.92		$	22.45		$	17.47		$	16.54		$	11.43
Income (loss) from       investment operations:
Net investment             income (loss)			0.03			0.26			0.31			0.13			(0.14	)		(0.03	)		(0.58	)
Net realized and             unrealized gain             (loss) on             investments		(10.89		)		8.43			4.34			8.86			5.14			0.96			5.78
Total from investment       operations		(10.86		)		8.69			4.65			8.99			5.00			0.93			5.20
Less distributions from:
Net investment             income			(0.00	)		(0.80	)		(0.22	)		(0.00	)		(0.02	)		(0.00	)		(0.09	)
Capital gains			(0.00	)		(3.21	)		(2.87	)		(1.52	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(4.01	)		(3.09	)		(1.52	)		(0.02	)		(0.00	)		(0.09	)
Net asset value,       end of period		$	25.30		$	36.16		$	31.48		$	29.92		$	22.45		$	17.47		$	16.54
Total return		- -30.03		%		27.09	%		15.86	%		41.09	%		28.63	%		5.62	%		45.55	%
Net assets, end of period       (in thousands)		$243			$375			$322			$368			$476			$512			$484
Ratio of expenses       to average net assets			0.94	%(2)		0.93	%		0.95	%		1.25	%		1.47	%		1.57	%(2)		2.19	%
Ratio of net investment       income (loss) to       average net assets			0.41	%(2)		0.52	%		0.94	%		0.97	%		- -0.36	%		- -0.74	%(2)		- -0.41	%
Portfolio turnover rate			114	%		142	%		106	%		104	%		110	%		29	%		58	%

(1)Class is closed.

(2)Annualized.

See Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY REAL ESTATE SECURITIES FUND

Portfolio Highlights

On September 30, 2008, Ivy Real Estate Securities Fund had net assets totaling $427,232 (in thousands) invested in a diversified portfolio of:

92.08%	Domestic Common Stocks and Investment Funds
7.04%	Cash and Cash Equivalents
0.88%	Foreign Common Stocks

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:

Financials Stocks	$	91.21
Cash and Cash Equivalents	$	7.04
Miscellaneous Stocks(1)	$	1.75

(1)Includes $0.76 Consumer Discretionary Stocks, $0.35 Health Care Stocks and $0.64 Telecommunication Services Stocks.

The Investments of Ivy Real Estate Securities Fund
September 30, 2008
(In Thousands)                                                                                                                       (Unaudited)
COMMON STOCKS	Shares		Value
Diversified Real Estate Activities - 0.50%
DuPont Fabros Technology, Inc.		139	$	2,126
Diversified REITs - 7.56%
Liberty Property Trust		36		1,359
PS Business Parks, Inc.		90		5,190
Vornado Realty Trust		207		18,845
Washington Real Estate Investment Trust		189		6,908
				32,302
Health Care Facilities - 0.35%
Sun Healthcare Group, Inc. (A)		103		1,513
Hotels, Resorts & Cruise Lines - 0.76%
Gaylord Entertainment Company (A)		43		1,263
Marriott International, Inc., Class A		76		1,972
				3,235
Industrial REITs - 7.63%
AMB Property Corporation		145		6,587
EastGroup Properties, Inc.		63		3,077
ProLogis		555		22,912
				32,576
Office REITs - 17.12%
Alexandria Real Estate Equities, Inc.		68		7,627
BioMed Realty Trust, Inc.		135		3,571
Boston Properties, Inc.		187		17,496
Corporate Office Properties Trust		189		7,617
Cousins Properties Incorporated		107		2,710
Digital Realty Trust, Inc.		206		9,719
Douglas Emmett, Inc.		349		8,061
Duke Realty Corporation		7		167
Kilroy Realty Corporation		162		7,721
Maguire Properties, Inc.		83		493
SL Green Realty Corp.		123		7,951
				73,133
Real Estate Management & Development - 0.88%
Brookfield Properties Corporation		237		3,757
Residential REITs - 12.75%
American Campus Communities, Inc.		79		2,667
Apartment Investment and Management Company, ClassA		108		3,793
AvalonBay Communities, Inc.		122		12,007
BRE Properties, Inc., Class A		135		6,630
Camden Property Trust		37		1,701
Equity Residential		257		11,405
Essex Property Trust, Inc.		106		12,590
Mid-America Apartment Communities, Inc.		75		3,691
				54,484
Retail REITs - 26.54%
Acadia Realty Trust		176		4,437
Developers Diversified Realty Corporation		210		6,652
Federal Realty Investment Trust		108		9,245
General Growth Properties, Inc.		212		3,200
Kimco Realty Corporation		347		12,833
Macerich Company (The)		206		13,137
National Retail Properties, Inc.		162		3,873
Regency Centers Corporation		128		8,556
Saul Centers, Inc.		65		3,275
Simon Property Group, Inc.		392		38,064
Tanger Factory Outlet Centers, Inc.		76		3,346
Taubman Centers, Inc.		136		6,785
				113,403
Specialized REITs - 17.26%
Cogdell Spencer Inc.		5		80
Extra Space Storage Inc.		23		352
Health Care Property Investors, Inc.		332		13,311
Health Care REIT, Inc.		139		7,372
Healthcare Realty Trust Incorporated		107		3,119
Hersha Hospitality Trust		313		2,329
Host Hotels & Resorts, Inc.		472		6,275
LaSalle Hotel Properties		119		2,766
Nationwide Health Properties, Inc.		166		5,976
Public Storage, Inc.		193		19,139
Ventas, Inc.		263		13,012
				73,731
Wireless Telecommunication Service - 0.64%
American Tower Corporation, Class A (A)		45		1,611
Crown Castle International Corp. (A)		39		1,121
				2,732
TOTAL COMMON STOCKS - 91.99%			$	392,992
(Cost: $339,158)

INVESTMENT FUNDS
Sector Fund-Real Estate
ProShares UltraShort Real Estate	54	$	4,142
TOTAL INVESTMENT FUNDS - 0.97%		$	4,142
(Cost: $4,195)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 4.90%
Avon Capital Corp. (Avon Products, Inc.),
2.050%, 10-8-08	$	2,000		1,999
Coca-Cola Company (The),
2.100%, 10-22-08		5,000		4,994
Danaher Corporation,
1.750%, 10-6-08		4,000		3,999
E.I. du Pont de Nemours and Company,
2.100%, 10-20-08		3,000		2,997
Praxair Inc.,
2.100%, 10-6-08		3,772		3,771
Walgreen Co.,
1.000%, 10-1-08		3,212		3,212
				20,972
United States Government Obligations - 2.11%
United States Treasury Bills:
0.100%, 10-9-08		4,000		4,000
0.300%, 10-23-08		5,000		4,999
				8,999
TOTAL SHORT-TERM SECURITIES - 7.01%			$	29,971
(Cost: $29,970)
TOTAL INVESTMENT SECURITIES - 99.97%			$	427,105
(Cost: $373,323)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.03%				127
NET ASSETS - 100.00%			$	427,232

Notes to Schedule of Investments

(A)No dividends were paid during the preceding 12 months.

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY REAL ESTATE SECURITIES FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $373,323)	$	427,105
Receivables:
Investment securities sold		2,811
Dividends and interest		1,356
Fund shares sold		536
Prepaid and other assets		37
Total assets		431,845
LIABILITIES
Payable for investment securities purchased		2,226
Payable to Fund shareholders		1,655
Accrued management fee		318
Accrued shareholder servicing		197
Accrued distribution and service fees		79
Due to custodian		23
Accrued accounting services fee		11
Other		104
Total liabilities		4,613
Total net assets	$	427,232
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	380,252
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		744
Accumulated net realized loss on investment transactions		(7,546	)
Net unrealized appreciation in value of investments		53,782
Net assets applicable to outstanding units of capital	$	427,232
Net asset value per share (net assets divided by shares outstanding):
Class A	$19.23
Class B	$19.02
Class C	$19.11
Class E	$19.26
Class I	$19.34
Class R	$19.25
Class Y	$19.25
Capital shares outstanding:
Class A		14,306
Class B		703
Class C		813
Class E		29
Class I		74
Class R		12
Class Y		6,282

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY REAL ESTATE SECURITIES FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                            (Unaudited)

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $12)	$	5,204
Interest and amortization		281
Total income		5,485
Expenses (Note 2):
Investment management fee		1,919
Shareholder servicing:
Class A		678
Class B		56
Class C		42
Class E		4
Class I		1
Class R		––	*
Class Y		93
Distribution and service fees:
Class A		339
Class B		67
Class C		72
Class E		1
Class R		1
Class Y		157
Accounting services fee		68
Audit fees		22
Custodian fees		13
Legal fees		1
Other		152
Total		3,686
Less expenses in excess of limit		(1	)
Total expenses		3,685
Net investment income		1,800
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS
Realized net loss on investments		(1,398	)
Unrealized depreciation in value of investments during the period		(1,913	)
Net loss on investments		(3,311	)
Net decrease in net assets resulting from operations	$	(1,511	)

*Not shown due to rounding.

See Accompanying 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,
	2008				2008
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	1,800		$	4,203
Realized net gain (loss) on investments			(1,398	)		15,420
Unrealized depreciation			(1,913	)	(134,861		)
Net decrease in net assets resulting                       from operations			(1,511	)	(115,238		)
Distributions to shareholders from:(1)
Net investment income:
Class A			(1,313	)		(1,960	)
Class B			(8	)		(8	)
Class C			(15	)		(17	)
Class E			(1	)		(1	)
Class I			(11	)		(15	)
Class R			(1	)		(1	)
Class Y			(839	)		(1,363	)
Realized gains on investment transactions:
Class A			(––	)		(25,382	)
Class B			(––	)		(1,303	)
Class C			(––	)		(1,366	)
Class E			(––	)		(35	)
Class I			(––	)		(120	)
Class R			(––	)		(14	)
Class Y			(––	)		(12,133	)
			(2,188	)		(43,718	)
Capital share transactions			30,704		(148,593		)
Total increase (decrease)			27,005		(307,549		)
NET ASSETS
Beginning of period			400,227			707,776
End of period		$	427,232		$	400,227
Accumulated undistributed net investment income		$	744		$	1,132

(1)See "Financial Highlights" on pages 226 - 232.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				7-31-03
Net asset value,     beginning of period		$	19.34		$	26.14		$	23.11		$	18.13		$	16.99		$	13.42		$	11.93
Income (loss) from     investment operations:
Net investment income			0.20			0.19			0.10			0.15			0.15	(1)		0.62			0.48
Net realized and         unrealized gain         (loss) on investments			(0.22	)		(4.87	)		4.05			5.81			1.93	(1)		3.38			1.72
Total from investment. operations			(0.02	)		(4.68	)		4.15			5.96			2.08			4.00			2.20
Less distributions from:
Net investment income			(0.09	)		(0.15	)		(0.15	)		(0.18	)		(0.25	)		(0.24	)		(0.48	)
Capital gains			(0.00	)		(1.97	)		(0.97	)		(0.80	)		(0.69	)		(0.19	)		(0.23	)
Total distributions			(0.09	)		(2.12	)		(1.12	)		(0.98	)		(0.94	)		(0.43	)		(0.71	)
Net asset value,     end of period		$	19.23		$	19.34		$	26.14		$	23.11		$	18.13		$	16.99		$	13.42
Total return(2)			- -0.09	%	- -18.13		%		18.09	%		33.53	%		12.09	%		29.78	%		19.65	%
Net assets, end of     period (in millions)		$275			$253			$395			$256			$155			$44			$60
Ratio of expenses to     average net assets     including expense     wavier			1.78	%(3)		1.67	%		1.57	%		1.64	%		1.67	%		1.48	%(3)(4)		1.46	%
Ratio of net investment     income to average     net assets including     expense wavier			2.24	%(3)		0.70	%		0.54	%		0.91	%		0.95	%		4.35	%(3)(4)		2.95	%
Ratio of expenses to     average net assets     excluding expense     waiver			1.78	%(3)(5)		1.67	%(5)		1.57	%(5)		1.64	%(5)		1.67	%(5)		1.49	%(3)(4)		1.46	%(5)
Ratio of net investment     income to average     net assets excluding     expense waiver			2.24	%(3)(5)		0.70	%(5)		0.54	%(5)		0.91	%(5)		0.95	%(5)		4.34	%(3)(4)		2.95	%(5)
Portfolio turnover rate			18	%		27	%		35	%		35	%		48	%		35	%		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 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 Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,       beginning of period		$	19.15		$	25.91		$	23.00		$	18.08		$	16.97		$	15.18
Income (loss) from       investment operations:
Net investment income (loss)			0.12			(0.08	)		(0.09	)		0.01			(0.07	)(2)		0.07
Net realized and unrealized             gain (loss) on investments			(0.24	)		(4.79	)		3.97			5.72			1.95	(2)		2.08
Total from investment operations			(0.12	)		(4.87	)		3.88			5.73			1.88			2.15
Less distributions from:
Net investment income			(0.01	)		(0.01	)		(0.00	)		(0.01	)		(0.08	)		(0.17	)
Capital gains			(0.00	)		(1.88	)		(0.97	)		(0.80	)		(0.69	)		(0.19	)
Total distributions			(0.01	)		(1.89	)		(0.97	)		(0.81	)		(0.77	)		(0.36	)
Net asset value, end of period		$	19.02		$	19.15		$	25.91		$	23.00		$	18.08		$	16.97
Total return			- -0.62	%	- -18.98		%		16.93	%		32.19	%		10.91	%		14.46	%
Net assets, end of period       (in millions)		$13			$13			$22			$15			$10			$2
Ratio of expenses to       average net assets			2.89	%(3)		2.71	%		2.57	%		2.66	%		2.73	%		3.02	%(3)
Ratio of net investment income       (loss) to average net assets			1.13	%(3)		- -0.24	%		- -0.42	%		0.01	%		- -0.24	%		- -5.40	%(3)
Portfolio turnover rate			18	%		27	%		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 Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,       beginning of period		$	19.22		$	26.01		$	23.04		$	18.10		$	16.99		$	15.18
Income (loss) from       investment operations:
Net investment income (loss)			0.14			0.00			(0.06	)		0.03			0.12			0.08
Net realized and unrealized             gain (loss) on investments			(0.23	)		(4.85	)		4.00			5.73			1.82			2.09
Total from investment operations			(0.09	)		(4.85	)		3.94			5.76			1.94			2.17
Less distributions from:
Net investment income			(0.02	)		(0.02	)		(0.00	)		(0.02	)		(0.14	)		(0.17	)
Capital gains			(0.00	)		(1.92	)		(0.97	)		(0.80	)		(0.69	)		(0.19	)
Total distributions			(0.02	)		(1.94	)		(0.97	)		(0.82	)		(0.83	)		(0.36	)
Net asset value, end of period		$	19.11		$	19.22		$	26.01		$	23.04		$	18.10		$	16.99
Total return			- -0.47	%	- -18.84		%		17.17	%		32.38	%		11.21	%		14.59	%
Net assets, end of period       (in millions)		$16			$13			$26			$17			$10			$2
Ratio of expenses to       average net assets			2.61	%(2)		2.50	%		2.39	%		2.46	%		2.49	%		2.82	%(2)
Ratio of net investment income       (loss) to average net assets			1.43	%(2)		0.03	%		- -0.28	%		0.15	%		0.14	%		-4.46	%(2)
Portfolio turnover rate			18	%		27	%		35	%		35	%		48	%		35	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY REAL ESTATE SECURITIES FUND
      Class E Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                           (Unaudited)

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	19.36		$	26.37
Income (loss) from investment operations:
Net investment income (loss)			0.19			(0.32	)(2)
Net realized and unrealized loss on investments			(0.26	)		(4.78	)(2)
Total from investment operations			(0.07	)		(5.10	)
Less distributions from:
Net investment income			(0.03	)		(0.03	)
Capital gains			(0.00	)		(1.88	)
Total distributions			(0.03	)		(1.91	)
Net asset value, end of period		$	19.26		$	19.36
Total return(3)			- -0.39	%	- -19.55		%
Net assets, end of period (in thousands)		$551			$425
Ratio of expenses to average net assets       including expense wavier			2.39	%(4)		2.77	%(4)
Ratio of net investment income (loss) to average       net assets including expense wavier			1.65	%(4)		- -1.47	%(4)
Ratio of expenses to average net assets       excluding expense waiver			2.88	%(4)		2.77	%(4)(5)
Ratio of net investment income (loss) to average       net assets excluding expense waiver			1.16	%(4)		- -1.47	%(4)(5)
Portfolio turnover rate			18	%		27	%(6)

(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 wavier of expenses during the period.

(6)For the12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY REAL ESTATE SECURITIES FUND
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                              (Unaudited)

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	19.43		$	26.38
Income (loss) from investment operations:
Net investment income			0.28	(2)		0.18	(2)
Net realized and unrealized loss on investments			(0.22	)(2)		(4.92	)(2)
Total from investment operations			0.06			(4.74	)
Less distributions from:
Net investment income			(0.15	)		(0.24	)
Capital gains			(0.00	)		(1.97	)
Total distributions			(0.15	)		(2.21	)
Net asset value, end of period		$	19.34		$	19.43
Total return			0.28	%	- -18.17		%
Net assets, end of period (in millions)		$2			$1
Ratio of expenses to average net assets			1.16	%(3)		1.17	%(3)
Ratio of net investment income to average net assets			2.91	%(3)		0.75	%(3)
Portfolio turnover rate			18	%		27	%(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, 2008.

See Accompanying 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 March 31,						For the period from 12-29-05(1) to
	9-30-08				2008			2007			3-31-06
Net asset value, beginning of period		$	19.35		$	26.14		$	23.11		$	20.55
Income (loss) from investment operations:
Net investment income (loss)			0.25			0.12			0.15			(0.20	)
Net realized and unrealized             gain (loss) on investments			(0.25	)		(4.81	)		3.98			2.79
Total from investment operations			0.00			(4.69	)		4.13			2.59
Less distributions from:
Net investment income			(0.10	)		(0.13	)		(0.13	)		(0.03	)
Capital gains			(0.00	)		(1.97	)		(0.97	)		(0.00	)
Total distributions			(0.10	)		(2.10	)		(1.10	)		(0.03	)
Net asset value, end of period		$	19.25		$	19.35		$	26.14		$	23.11
Total return			0.00	%	- -18.12		%		17.98	%		12.59	%
Net assets, end of period (in thousands)		$242			$175			$158			$113
Ratio of expenses to average net assets			1.70	%(2)		1.68	%		1.68	%		1.73	%(2)
Ratio of net investment income (loss)       to average net assets			2.40	%(2)		0.26	%		0.43	%		- -3.64	%(2)
Portfolio turnover rate			18	%		27	%		35	%		35	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,       beginning of period		$	19.35		$	26.15		$	23.12		$	18.14		$	16.99		$	15.18
Income (loss) from       investment operations:
Net investment income			0.26			0.36			0.23			0.27			0.26	(2)		0.04
Net realized and unrealized             gain (loss) on investments			(0.23	)		(4.99	)		3.97			5.75			1.87	(2)		2.15
Total from investment       operations			0.03			(4.63	)		4.20			6.02			2.13			2.19
Less distributions from:
Net investment income			(0.13	)		(0.20	)		(0.20	)		(0.24	)		(0.29	)		(0.19	)
Capital gains			(0.00	)		(1.97	)		(0.97	)		(0.80	)		(0.69	)		(0.19	)
Total distributions			(0.13	)		(2.17	)		(1.17	)		(1.04	)		(0.98	)		(0.38	)
Net asset value, end of period		$	19.25		$	19.35		$	26.15		$	23.12		$	18.14		$	16.99
Total return			0.15	%	- -17.89		%		18.32	%		33.86	%		12.40	%		14.78	%
Net assets, end of period       (in millions)		$121			$120			$265			$216			$148			$91
Ratio of expenses to       average net assets			1.38	%(3)		1.38	%		1.37	%		1.39	%		1.44	%		1.60	%(3)
Ratio of net investment income       to average net assets			2.62	%(3)		1.19	%		0.94	%		1.27	%		1.59	%		0.14	%(3)
Portfolio turnover rate			18	%		27	%		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 Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY BOND FUND

Portfolio Highlights

On September 30, 2008, Ivy Bond Fund had net assets totaling $119,803 (in thousands) invested in a diversified portfolio of:

95.39%	Bonds
4.32%	Cash and Cash Equivalents
0.29%	Preferred Stocks

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:

United States Government Agency Obligations	$	41.86
Corporate Bonds	$	40.82
United States Government Obligations	$	12.71
Cash and Cash Equivalents	$	4.32
Preferred Stocks	$	0.29

Quality Weightings

On September 30, 2008, the breakdown of bonds (by ratings) held by the Fund was as follows:

Investment Grade
AAA	62.14	%
AA	2.30	%
A	5.17	%
BBB	16.97	%
Non-Investment Grade
BB	3.84	%
Non-rated	4.97	%
Cash and Cash Equivalents and Equities	4.61	%

Ratings reflected in the wheel are taken from Standard & Poor's.

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.

On Sept. 7 2008, the Federal Housing Finance Agency (FHFA), an agency of the U.S. government, placed Fannie Mae and Freddie Mac into conservatorship, a statutory process with the objective of returning the entities to normal business operations. FHFA will act as the conservator to operate Fannie Mae and Freddie Mac until they are stabilized. It is unclear what effect this conservatorship will have on the securities issued or guaranteed by Fannie Mae or Freddie Mac.

The Investments of Ivy Bond Fund
September 30, 2008
(In Thousands)                                                                                                                     (Unaudited)
PREFERRED STOCKS	Shares		Value
Office REIT's - 0.15%
PS Business Parks, Inc., 7.0% Cumulative		11	$	182
Specialized REIT's - 0.14%
Public Storage, Inc., 6.25% Cumulative		11		166
TOTAL PREFERRED STOCKS - 0.29%			$	348
(Cost: $520)
CORPORATE DEBT SECURITIES	Principal
Banking - 1.14%
Citigroup Inc.,
8.400%, 4-29-49 (A)	$ 700			477
Colonial Bank, N.A.,
6.375%, 12-1-15		400		298
Schwab Capital Trust I,
7.500%, 11-15-37 (A)		720		594
				1,369
Cable & Satellite - 1.05%
Comcast Corporation,
6.400%, 5-15-38	1,000			798
Cox Communications, Inc.,
7.125%, 10-1-12		450		458
				1,256
Car Loan - 0.40%
Capital Auto Receivables Asset Trust 2006-1,
7.160%, 1-15-13 (B)		245		232
Capital Auto Receivables Asset Trust 2007-2,
8.300%, 2-18-14 (B)		275		254
				486
Construction & Engineering - 0.25%
USG Corporation,
6.300%, 11-15-16		400		302
Consumer Products - 0.36%
Estee Lauder Companies Inc. (The),
6.000%, 5-15-37		500		432

Electric - 1.26%
E.ON International Finance B.V.,
6.650%, 4-30-38 (B)		420		407
FirstEnergy Generation Corp.,
6.850%, 6-1-34		295		270
NiSource Finance Corp.,
6.800%, 1-15-19		350		318
Pennsylvania Electric Company,
5.125%, 4-1-14		250		226
TransAlta Corporation,
6.650%, 5-15-18		300		283
				1,504
Electronics - 0.28%
Tyco Electronics Ltd.:
6.550%, 10-1-17		190		183
7.125%, 10-1-37		165		155
				338
Finance - Other - 3.45%
Allied Capital Corporation,
6.625%, 7-15-11		685		667
American Capital Strategies, Ltd.,
6.850%, 8-1-12		635		588
Ameriprise Financial, Inc.,
7.518%, 6-1-66 (A)		730		555
Capmark Financial Group Inc.:
5.875%, 5-10-12		340		169
6.300%, 5-10-17		200		79
Janus Capital Group Inc.:
6.250%, 6-15-12		315		298
6.700%, 6-15-17		300		258
JPMorgan Chase & Co.,
7.900%, 4-29-  49 (A)		190		160
Lazard Group LLC,
6.850%, 6-15-17		950		787
Symetra Financial Corporation,
8.300%, 10-15-37 (A)(B)		885		575
				4,136
Gas - Pipelines - 2.23%
El Paso Corporation,
7.250%, 6-1-18		735		684
Magellan Midstream Partners, L.P.,
6.400%, 7-15-18		200		196
NGPL PipeCo LLC,
7.768%, 12-15-37 (B)		745		729
Plains All American Pipeline, L.P.,
6.500%, 5-1-18 (B)		750		677
Williams Partners L.P. and Williams Partners Finance Corporation,
7.250%, 2-1-17		420		390
				2,676
Health Care Supply - 0.89%
Healthcare Realty Trust Incorporated,
5.125%, 4-1-14		660		572
Humana Inc.,
8.150%, 6-15-38		520		491
				1,063
Independent Finance - 0.33%
HSBC Finance Corporation,
5.700%, 6-1-11		400		398
Information / Data Technology - 0.77%
Fiserv, Inc.:
6.125%, 11-20-12		340		330
6.800%, 11-20-17		335		323
Intuit Inc.,
5.750%, 3-15-17		310		274
				927
Leasing - 0.33%
International Lease Finance Corporation:
6.375%, 3-25-13		360		227
5.625%, 9-20-13		250		163
				390
Life Insurance - 1.29%
Liberty Mutual Holding Company Inc.,
7.800%, 3-15-37 (B)		360		217
Prudential Financial, Inc.,
8.875%, 6-15-38 (A)(C)		250		235
StanCorp Financial Group, Inc.:
6.875%, 10-1-12		450		441
6.900%, 5-29-67 (A)		300		252
Willis North America Inc.,
6.200%, 3-28-17		455		396
				1,541
Oil & Gas Exploration & Production - 0.23%
Petro-Canada,
6.800%, 5-15-38	350			277
Other Mortgage-Backed Securities - 18.90%
ABFS Mortgage Loan Trust 2002-4,
7.423%, 12-15-33 (A)		97		61
Asset Securitization Corporation,
7.675%, 2-14-43 (A)		170		112
Asset Securitization Corporation (Interest Only),
1.589%, 10-13-26 (A)(B)(D)		893		26
Associates Manufactured Housing Contract Pass-Through Certificates,
7.725%, 6-15-28 (A)		79		80
Banc of America Alternative Loan Trust 2005-10:
5.668%, 11-25-35 (A)		133		61
5.668%, 11-25-35 (A)		275		137
Banc of America Alternative Loan Trust 2005-12:
5.809%, 1-25-36 (A)		213		76
5.809%, 1-25-36 (A)		294		148
Banc of America Alternative Loan Trust 2006-  4,
6.224%, 5-25-46 (A)		318		144
Banc of America Alternative Loan Trust 2006-8,
6.260%, 11-25-46 (A)		141		13
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2001-1,
6.125%, 4-15-36 (B)		380		305
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2002-2,
6.200%, 7-11-43 (B)		275		230
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2005-6,
5.352%, 9-10-47 (A)		350		318
Banc of America Mortgage 2007-1 Trust,
6.000%, 3-25-37		167		62
Banc of America Mortgage Trust 2004-7,
5.750%, 8-25-34		80		72
Bear Stearns Commercial Mortgage Securities Trust       2002-TOP6,
6.000%, 10-15-36 (A)(B)		320		167
Bear Stearns Commercial Mortgage Securities Trust       2004-PWR4,
5.468%, 6-11-41 (A)	1,500			1,416
BlackRock Capital Finance,
7.750%, 9-25-26 (B)		97		53
Capital Auto Receivables Asset Trust 2007-1,
6.570%, 9-16-13 (B)		625		495
Capital Auto Receivables Asset Trust 2007-3,
8.000%, 3-17-14 (B)		480		422
Capital One Multi-asset Execution Trust,
5.750%, 7-15-20		295		259
CarMax Auto Owner Trust 2007-3,
7.580%, 3-17-14		380		332
C-Bass 2006-CB2 Trust,
5.860%, 12-25-36		530		303
C-Bass 2006-MH1 Trust:
6.250%, 10-25-36 (A)(B)		170		155
6.240%, 10-25-36 (A)(B)		102		87
CD 2006-CD2 Mortgage Trust,
5.805%, 1-15-46 (A)(C)		710		580
CD 2007-CD4 Commercial Mortgage Trust,
5.883%, 12-11-49 (C)		480		313
Cendant Mortgage Corporation and Bishop's Gate Residential       Mortgage Trust,
6.250%, 6-25-32 (C)		113		82
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35 (A)		370		316
Chase Mortgage Finance Trust, Series 2003-S11,
5.500%, 10-25-33		111		101
CHL Mortgage Pass-Through Trust 2004-J4,
5.250%, 5-25-34		677		369
Citibank Credit Card Issuance Trust, Class 2005-C1,
5.500%, 3-24-17		200		149
CitiMortgage Alternative Loan Trust, Series 2007-A7:
6.238%, 7-25-37 (A)		154		10
6.250%, 7-25-37		428		321
COMM 2006-CNL2,
5.756%, 2-5-19 (A)(B)		95		76
Commercial Mortgage Asset Trust,
6.000%, 11-17-32		225		129
CountryPlace Manufactured Housing Contract Trust 2005-1,
5.200%, 12-15-35 (A)(C)		300		205
Credit Suisse First Boston Mortgage Securities Corp.,
6.000%, 11-25-18		36		31
CSAB Mortgage-Backed Trust 2006-2,
6.080%, 9-25-36 (A)		650		339
CSFB Commercial Mortgage Trust 2003-C4,
5.322%, 8-15-36 (A)(B)		500		264
CWHEQ Home Equity Loan Trust, Series 2006-S3,
6.085%, 6-25-21 (A)		675		281
CWHEQ Home Equity Loan Trust, Series 2006-S6,
5.962%, 3-25-34 (A)		210		67
CWHEQ Home Equity Loan Trust, Series 2007-S2,
5.934%, 5-25-37 (A)		572		250
Discover Card Execution Note Trust,
5.650%, 3-16-20		385		334
First Horizon Mortgage Pass-Through Trust 2003-8,
5.132%, 10-25-33 (A)		93		53
Flagstar Home Equity Loan Trust 2007-1,
5.997%, 1-25-35 (A)(B)		415		244
Ford Credit Auto Owner Trust 2006-B,
7.120%, 2-15-13 (B)		140		105
Ford Credit Auto Owner Trust 2006-C,
6.890%, 5-15-13 (C)		200		151
Ford Credit Auto Owner Trust 2007-A,
7.050%, 12-15-13 (B)		175		125
GE Capital Commercial Mortgage Corp. 2002-2,
6.039%, 8-11-36 (A)(B)		565		486
GE Commercial Mortgage Corporation, Series 2007-C1Trust,
5.543%, 12-10-49		340		287
Global Mortgage Securitization 2005-A Ltd. and Global       Mortgage Securitization 2005-A LLC:
5.394%, 4-25-32 (A)		262		159
5.250%, 4-25-32		177		162
Global Mortgage Securitization Ltd. and Global Mortgage       Securitization, LLC:
5.250%, 11-25-32 (C)		269		225
5.250%, 11-25-32 (C)		231		210
GMACM Home Equity Loan Trust 2006-HE3,
6.088%, 10-25-36 (A)		485		132
GMACM Home Equity Loan Trust 2007-HE1,
5.952%, 8-25-37 (A)		570		216
Green Tree Financial Corporation:
6.400%, 10-15-18		49		49
7.350%, 5-15-27		28		29
GS Mortgage Securities Corporation II, Commercial Mortgage       Pass-Through Certificates, Series 2001-LIB,
6.733%, 2-14-16 (B)	225			236
Home Equity Loan Trust 2003-HS2,
5.090%, 7-25-33 (A)		17		15
Hometown Commercial Capital, LLC Hometown Commercial       Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38 (C)		444		346
Hometown Commercial Trust 2007-1, Commercial Mortgage-       Backed Notes, Series 2007-1,
6.057%, 6-11-39 (C)		459		371
J.P. Morgan Chase Commercial Mortgage Securities       Trust 2006-LDP8,
5.370%, 5-15-45	1,000			911
J.P. Morgan Mortgage Acquisition Trust 2006-CW2,
6.337%, 8-25-36 (A)		590		424
J.P. Morgan Mortgage Trust 2005-S2,
5.673%, 9-25-35 (A)		498		338
J.P. Morgan Mortgage Trust 2006-S3,
6.500%, 8-25-36		395		304
JPMorgan Auto Receivables Trust 2007-A,
7.090%, 2-15-14 (C)		152		137
Lehman XS Trust, Series 2005-8,
5.690%, 12-25-35		585		436
MASTR Asset Securitization Trust 2003-10,
5.500%, 11-25-33		169		155
MBNA Credit Card Master Note Trust,
6.800%, 7-15-14		325		292
Morgan Stanley Capital I Inc., 1999-FNVI, Class E,
7.877%, 3-15-31 (A)	1,000			1,001
Morgan Stanley Capital I Trust 2004-TOP15,
5.030%, 6-13-41	1,000			955
Morgan Stanley Capital I, Inc., Commercial Mortgage       Pass-Through Certificates, Series 1998-XL2,
6.590%, 10-3-34 (A)		500		499
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4:
5.880%, 11-28-35 (A)(C)		155		70
5.880%, 11-28-35 (A)(C)		105		52
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4       (Interest Only),
1.166%, 11-28-35 (A)(C)(D)	4,837			59
National Collegiate Trust 1997-S2 (The),
7.240%, 9-20-14		115		44
Nomura Asset Securities Corporation, Commercial Mortgage       Pass-Through Certificates, Series 1998-D6,
6.000%, 3-15-30 (B)		500		426
Origen Manufactured Housing Contract Trust 2004-A,
5.700%, 1-15-35 (A)		100		91
Origen Manufactured Housing Contract Trust 2004-B,
5.730%, 11-15-35 (A)		50		44
Origen Manufactured Housing Contract Trust 2005-A:
4.490%, 5-15-18		91		89
5.860%, 6-15-36 (A)		120		101
Origen Manufactured Housing Contract Trust 2005-B,
5.605%, 5-15-22		80		77
RALI Series 2003-QS10 Trust,
5.750%, 5-25-33		236		193
RASC Series 2003-KS10 Trust,
6.410%, 12-25-33 (A)		88		48
Structured Asset Securities Corporation,
5.630%, 5-25-34 (A)		169		111
TimberStar Trust I,
6.208%, 10-15-36 (B)		460		359
Vanderbilt Mortgage and Finance, Inc.,
3.537%, 3-7-28 (A)		147		144
Wachovia Bank Commercial Mortgage Trust (The),
4.942%, 11-15-34 (B)		285		196
Wachovia Bank Commercial Mortgage Trust Commercial       Mortgage Pass-Through Certificates Series 2006-C26,
6.011%, 6-15-  45 (A)		450		407
Wells Fargo Alternative Loan 2007-PA3 Trust,
6.202%, 7-25-37 (A)		867		350
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.250%, 8-25-33 (B)		266		150
WFS Financial 2005-1 Owner Trust, A4,
3.870%, 8-17-12		772		767
WFS Financial 2005-2 Owner Trust,
4.390%, 11-19-12		58		59
				22,641
Other Non-Agency REMIC/CMO - 2.03%
Banco Hipotecario Nacional,
7.916%, 7-25-09 (C)		7		- -	*
Bear Stearns Commercial Mortgage Securities Inc.,
5.064%, 5-14-16 (B)	2,000			2,007
Bear Stearns Commercial Mortgage Securities Inc.,       Series 1999-WF2:
6.000%, 7-15-31 (B)		500		311
6.000%, 7-15-31 (B)		100		79
Mellon Residential Funding,
6.750%, 6-25-28		29		29
				2,426
Pharmaceuticals - 0.27%
Amgen Inc.,
6.900%, 6-1-38		115		111
Laboratory Corporation of America Holdings,
5.500%, 2-1-13		215		209
				320
Property & Casualty Insurance - 1.05%
Commerce Group, Inc. (The),
5.950%, 12-9-13		615		603
Fund American Companies, Inc.,
5.875%, 5-15-13		560		415
Hartford Financial Services Group, Inc. (The),
8.125%, 6-15-38 (A)		280		239
				1,257
Publishing - 0.43%
Thomson Reuters Corporation,
6.500%, 7-15-18		545		521
REITs - 1.67%
Camden Property Trust,
4.700%, 7-15-09		600		588
Highwoods Realty Limited Partnership,
5.850%, 3-15-17		805		646
Nationwide Health Properties, Inc.,
6.000%, 5-20-15		440		415
Realty Income Corporation,
6.750%, 8-15-19		395		356
				2,005
Secondary Oil & Gas Producers - 0.58%
Plains Exploration & Production Company,
7.750%, 6-15-15		750		690
Securities - 0.21%
Goldman Sachs Capital I,
6.345%, 2-15-34		5		3
Jefferies Group, Inc.,
6.250%, 1-15-36		400		248
				251
Service - Other - 0.18%
ERAC USA Finance Company,
5.900%, 11-15-15 (B)		265		216
Steel - 0.62%
ArcelorMittal,
6.125%, 6-1-18 (B)		835		739
Utilities - Water - 0.37%
American Water Capital Corp.,
6.593%, 10-15-37		500		445
Wireless - 0.25%
Nextel Communications, Inc.,
6.875%, 10-31-13		440		299
TOTAL CORPORATE DEBT SECURITIES - 40.82%			$	48,905
(Cost: $60,584)

UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS
Agency Obligations - 8.29%
Federal Home Loan Bank,
2.625%, 5-20-11	2,250	2,200
Federal Home Loan Mortgage Corporation:
3.250%, 2-25-11	4,940	4,928
3.750%, 6-28-13	1,155	1,146
Federal National Mortgage Association:
4.250%, 5-15-09	500	503
3.875%, 7-12-13	1,155	1,152
		9,929

Mortgage-Backed Obligations - 33.57%
Federal Home Loan Mortgage Association Fixed Rate       Participation Certificates,
5.000%, 10-1-34		4,305		4,193
Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates:
3.500%, 2-15-30		94		91
6.500%, 9-1-32		177		184
6.000%, 11-1-33		375		382
5.500%, 5-1-34		101		101
5.500%, 5-1-34		155		155
5.500%, 6-1-34		1,304		1,300
5.000%, 9-1-34		37		36
5.500%, 9-1-34		128		127
6.500%, 10-1-34		4,745		4,865
5.500%, 10-1-34		298		298
5.500%, 7-1-35		171		170
5.500%, 7-1-35		376		375
5.500%, 10-1-35		2,385		2,372
5.500%, 10-1-35		472		472
6.000%, 10-1-37		2,000		2,025
7.000%, 12-1-37		630		660
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
5.500%, 1-1-17		131		133
6.000%, 9-1-17		76		78
5.500%, 3-1-18		87		89
5.000%, 6-1-18		317		318
5.000%, 7-1-18		113		113
5.500%, 10-1-20		1,200		1,210
7.500%, 5-1-31		87		94
7.000%, 9-1-31		33		35
7.000%, 11-1-31		67		71
6.500%, 12-1-31		42		44
7.000%, 2-1-32		62		65
7.000%, 3-1-32		70		74
6.500%, 4-1-32		19		20
6.500%, 5-1-32		19		20
6.500%, 7-1-32		53		55
6.500%, 8-1-32		43		45
6.500%, 8-1-32		43		45
6.500%, 9-1-32		78		80
6.500%, 9-1-32		31		32
6.500%, 10-1-32		90		93
6.000%, 10-1-32		105		107
6.000%, 11-1-32		100		102
6.000%, 3-1-33		80		82
6.000%, 4-1-33		159		162
5.500%, 4-1-33		144		144
5.500%, 5-1-33		100		100
6.000%, 10-1-33		156		159
5.500%, 1-1-34		98		98
5.500%, 1-1-34		98		98
6.000%, 1-1-34		382		389
5.500%, 3-1-34		138		138
5.500%, 3-1-34		60		59
5.500%, 4-1-34		44		44
5.500%, 4-1-34		145		146
5.500%, 5-1-34		116		116
5.000%, 5-1-34		64		63
6.000%, 10-1-34		2,500		2,532
5.000%, 10-1-34		1,560		1,520
5.500%, 10-1-34		485		484
6.000%, 11-1-34		578		587
5.500%, 11-1-34		1,254		1,253
5.500%, 2-1-35		156		156
5.500%, 4-1-35		1,002		1,001
5.000%, 7-1-35		187		183
5.000%, 7-1-35		95		93
5.000%, 7-1-35		43		42
5.000%, 7-1-35		77		76
5.500%, 8-1-35		105		105
5.500%, 10-1-35		792		793
5.000%, 10-1-35		3,004		2,931
6.000%, 3-1-36		963		977
6.500%, 10-1-36		790		810
6.000%, 7-1-38		1,096		1,112
Government National Mortgage Association Agency       REMIC/CMO (Interest Only),
1.228%, 6-17-45 (A)(D)		4,685		195
Government National Mortgage Association Fixed Rate       Pass-Through Certificates,
5.500%, 10-1-35		2,845		2,848
				40,225
TOTAL UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS - 41.86%			$	50,154
(Cost: $50,431)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations - 1.10%
United States Treasury Notes,
1.875%, 7-15-13 (E)		1,317		1,313
Treasury Obligations - 11.61%
United States Treasury Bonds,
5.375%, 2-15-31		2,775		3,144
United States Treasury Notes:
2.000%, 9-30-10		5,055		5,058
3.125%, 9-30-13 (F)		3,265		3,287
4.000%, 8-15-18		1,400		1,419
4.375%, 2-15-38		1,000		1,009
				13,917
TOTAL UNITED STATES GOVERNMENT       OBLIGATIONS - 12.71%			$	15,230
(Cost: $15,043)
SHORT-TERM SECURITIES
Commercial Paper - 23.37%
Air Products and Chemicals, Inc.,
1.500%, 10-1-08	$	1,998		1,998
Automatic Data Processing Inc.,
2.000%, 10-1-08		4,000		4,000
Avon Capital Corp. (Avon Products, Inc.),
2.200%, 10-3-08		5,000		4,999

Danaher Corporation,
1.800%, 10-6-08	2,000		2,000
McCormick & Co. Inc.,
3.000%, 10-1-08	5,000		5,000
Pfizer Inc.,
1.800%, 10-8-08	5,000		4,998
Praxair Inc.,
2.050%, 10-10-08	5,000		4,997
			27,992
United States Government Obligations - 1.67%
United States Treasury Bills,
0.300%, 10-23-08	2,000		2,000
TOTAL SHORT-TERM SECURITIES - 25.04%		$	29,992
(Cost: $29,992)
TOTAL INVESTMENT SECURITIES - 120.72%		$	144,629
(Cost: $156,570)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (20.72%)			(24,826	)
NET ASSETS - 100.00%		$	119,803

Notes to Schedule of Investments

*Not shown due to rounding.

(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

(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, 2008, the total value of these securities amounted to $11,050 or 9.22% 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, 2008, the total value of these securities amounted to $3,036 or 2.53% of net assets.

(D)Amount shown in principal column represents notional amount for computation of interest.

(E)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.

(F)This security serves as collateral for the following open futures contracts at September 30, 2008. A portion of this security was held on September 30 by Barclays due to the bankruptcy of the Lehman Brothers, the Fund's counter party to previous futures contracts. That portion was subsequently received from Barclays by the Fund after September 30.
	Description	Type	Expiration Date	Number of Contracts	Market Value			Unrealized Appreciation (Depreciation)
	United States 10 Year       Treasury Note	Short	12-19-08	(8)		$	(917)		$	6
	United States 30 Year       Treasury Bond	Short	12-19-08	(67)		(7,851)			(17)
	United States 5 Year       Treasury Note	Short	12-31-08	(44)		(4,938)				26
	United States 2 Year       Treasury Note	Long	12-31-08	158			33,723			185
						$	20,017		$	200
The following acronyms are used throughout this portfolio: CMO = Collateralized Mortgage Obligation REMIC = Real Estate Mortgage Investment Conduit
See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY BOND FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $156,570)	$	144,629
Cash		769
Receivables:
Investment securities sold		5,801
Dividends and interest		990
Fund shares sold		620
Variation margin - futures		250
Prepaid and other assets		27
Total assets		153,086
LIABILITIES
Payable for investment securities purchased		32,570
Payable to Fund shareholders		253
Accrued management fee		52
Accrued distribution and service fees		49
Accrued shareholder servicing		36
Dividends payable		20
Accrued accounting services fee		6
Other		297
Total liabilities		33,283
Total net assets	$	119,803
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	132,764
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		––
Accumulated net realized loss on investment transactions		(1,220	)
Net unrealized depreciation in value of investments		(11,741	)
Net assets applicable to outstanding units of capital	$	119,803
Net asset value per share (net assets divided by shares outstanding):
Class A	$9.26
Class B	$9.26
Class C	$9.26
Class E	$9.26
Class I	$9.26
Class Y	$9.26
Capital shares outstanding:
Class A		11,498
Class B		357
Class C		926
Class E		116
Class I		19
Class Y		22

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY BOND FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                               (Unaudited)

INVESTMENT INCOME
Income:
Interest and amortization	$	3,035
Dividends		18
Total income		3,053
Expenses:
Investment management fee		295
Distribution and service fees:
Class A		128
Class B		15
Class C		28
Class E		––	*
Class Y		1
Shareholder servicing:
Class A		131
Class B		12
Class C		11
Class E		3
Class I		––	*
Class Y		––	*
Registration fees		38
Accounting services fee		33
Audit fees		11
Custodian fees		11
Legal fees		1
Other		26
Total		744
Less expenses in excess of limit		(1	)
Total expenses		743
Net investment income		2,310
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized net loss on securities		(571	)
Realized net loss on futures		(40	)
Realized net loss on investments		(611	)
Unrealized depreciation in value of securities during the period		(6,470	)
Unrealized appreciation in value of futures during the period		325
Unrealized depreciation in value of investments during the period		(6,145	)
Net loss on investments		(6,756	)
Net decrease in net assets resulting from operations	$	(4,446	)

*Not shown due to rounding.

See Accompanying 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,
	2008				2008
INCREASE IN NET ASSETS
Operations:
Net investment income		$	2,310		$	3,918
Realized net loss on investments			(611	)		(22	)
Unrealized depreciation			(6,145	)		(5,552	)
Net decrease in net assets resulting from operations			(4,446	)		(1,656	)
Distributions to shareholders from:(1)
Net investment income:
Class A			(2,149	)		(3,640	)
Class B			(46	)		(75	)
Class C			(91	)		(177	)
Class E			(18	)		(18	)
Class I			(4	)		(8	)
Class Y			(2	)		(––	)*
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		(––	)
Class I			(––	)		(––	)
Class Y			(—	)		(—	)
			(2,310	)		(3,918	)
Capital share transactions			23,117			38,841
Total increase			16,361			33,267
NET ASSETS
Beginning of period			103,442			70,175
End of period		$	119,803		$	103,442
Accumulated undistributed net investment income		$	—		$	—

*Not shown due to rounding
(1)See "Financial Highlights" on pages 253 - 258.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				9-30-03
Net asset value,      beginning of period		$	9.84		$	10.46		$	10.28		$	10.52		$	10.83		$	10.73		$	10.57
Income (loss) from      investment operations:
Net investment income			0.20			0.47			0.46			0.42			0.41			0.23			0.45
Net realized and           unrealized gain (loss)           on investments		(0.58		)	(0.62		)		0.18			(0.24	)		(0.30	)		0.09			0.15
Total from investment      operations		(0.38		)	(0.15		)		0.64			0.18			0.11			0.32			0.60
Less distributions from:
Net investment income		(0.20		)	(0.47		)		(0.46	)		(0.42	)		(0.42	)		(0.22	)		(0.44	)
Capital gains		(0.00		)	(0.00		)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions		(0.20		)	(0.47		)		(0.46	)		(0.42	)		(0.42	)		(0.22	)		(0.44	)
Net asset value,      end of period		$	9.26		$	9.84		$	10.46		$	10.28		$	10.52		$	10.83		$	10.73
Total return(1)		- -3.86		%	- -1.51		%		6.40	%		1.74	%		1.04	%		3.03	%		5.84	%
Net assets, end of period      (in millions)		$107			$95			$64			$56			$49			$23			$18
Ratio of expenses to      average net assets      including expense      wavier			1.24	%(2)		1.21	%		1.20	%		1.23	%		1.17	%		1.46	%(2)(3)		1.15	%
Ratio of net investment      income to average net      assets including      expense wavier			4.19	%(2)		4.57	%		4.48	%		4.03	%		3.84	%		4.53	%(2)(3)		4.25	%
Ratio of expenses to      average net assets      excluding expense      wavier			1.24	%(2)(4)		1.21	%(4)		1.20	%(4)		1.23	%(4)		1.43	%		2.36	%(2)(3)		2.01	%
Ratio of net investment      income to average      net assets excluding      expense wavier			4.19	%(2)(4)		4.57	%(4)		4.48	%(4)		4.03	%(4)		3.58	%		3.64	%(2)(3)		3.39	%
Portfolio turnover rate			193	%		75	%		91	%		126	%		200	%		78	%		119	%

(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 Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	9.84		$	10.46		$	10.28		$	10.52		$	10.83		$	10.64
Income (loss) from      investment operations:
Net investment income			0.15			0.36			0.34			0.30			0.28			0.11
Net realized and unrealized           gain (loss) on investments		(0.58		)		(0.62	)		0.18			(0.24	)		(0.31	)		0.19
Total from investment operations		(0.43		)		(0.26	)		0.52			0.06			(0.03	)		0.30
Less distributions from:
Net investment income		(0.15		)		(0.36	)		(0.34	)		(0.30	)		(0.28	)		(0.11	)
Capital gains		(0.00		)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions		(0.15		)		(0.36	)		(0.34	)		(0.30	)		(0.28	)		(0.11	)
Net asset value, end of period		$	9.26		$	9.84		$	10.46		$	10.28		$	10.52		$	10.83
Total return	-4.41			%		- -2.59	%		5.22	%		0.57	%		- -0.23	%		2.77	%
Net assets, end of period      (in thousands)	$3,303				$2,476			$1,828			$1,451			$744			$287
Ratio of expenses to average      net assets			2.39	%(2)		2.31	%		2.32	%		2.38	%		2.45	%		2.76	%(2)
Ratio of net investment income      to average net assets			3.02	%(2)		3.46	%		3.37	%		2.90	%		2.63	%		3.04	%(2)
Portfolio turnover rate			193	%		75	%		91	%		126	%		200	%		78	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	9.84		$	10.46		$	10.28		$	10.52		$	10.83		$	10.64
Income (loss) from      investment operations:
Net investment income			0.16	(2)		0.39			0.37			0.31			0.27			0.11
Net realized and unrealized           gain (loss) on investments		(0.58		)(2)		(0.62	)		0.18			(0.24	)		(0.31	)		0.19
Total from investment operations		(0.42		)		(0.23	)		0.55			0.07			(0.04	)		0.30
Less distributions from:
Net investment income		(0.16		)		(0.39	)		(0.37	)		(0.31	)		(0.27	)		(0.11	)
Capital gains		(0.00		)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions		(0.16		)		(0.39	)		(0.37	)		(0.31	)		(0.27	)		(0.11	)
Net asset value, end of period		$	9.26		$	9.84		$	10.46		$	10.28		$	10.52		$	10.83
Total return	-4.28			%		- -2.31	%		5.48	%		0.66	%		- -0.40	%		2.77	%
Net assets, end of period      (in thousands)	$8,577				$5,259			$4,096			$1,737			$547			$115
Ratio of expenses to average      net assets			2.11	%(3)		2.02	%		2.06	%		2.28	%		2.59	%		2.61	%(3)
Ratio of net investment income      to average net assets			3.30	%(3)		3.76	%		3.62	%		3.01	%		2.47	%		3.09	%(3)
Portfolio turnover rate			193	%		75	%		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 Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.84		$	10.46
Income (loss) from investment operations:
Net investment income			0.18	(2)		0.43	(2)
Net realized and unrealized loss on investments		(0.58		)(2)		(0.62	)(2)
Total from investment operations		(0.40		)		(0.19	)
Less distributions from:
Net investment income		(0.18		)		(0.43	)
Capital gains		(0.00		)		(0.00	)
Total distributions		(0.18		)		(0.43	)
Net asset value, end of period		$	9.26		$	9.84
Total return(3)		-4.03		%		- -1.85	%
Net assets, end of period (in millions)		$1			$1
Ratio of expenses to average net assets       including expense wavier			1.58	%(4)		1.59	%(4)
Ratio of net investment income to average       net assets including expense wavier			3.87	%(4)		4.14	%(4)
Ratio of expenses to average net assets       excluding expense wavier			1.80	%(4)		1.59	%(4)(5)
Ratio of net investment income to average       net assets excluding expense wavier			3.65	%(4)		4.14	%(4)(5)
Portfolio turnover rate			193	%		75	%(6)

(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.

(6)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.84		$	10.46
Income (loss) from investment operations:
Net investment income			0.22			0.50	(2)
Net realized and unrealized loss on investments		(0.58		)		(0.62	)(2)
Total from investment operations		(0.36		)		(0.12	)
Less distributions from:
Net investment income		(0.22		)		(0.50	)
Capital gains		(0.00		)		(0.00	)
Total distributions		(0.22		)		(0.50	)
Net asset value, end of period		$	9.26		$	9.84
Total return		- -3.69		%		- -1.17	%
Net assets, end of period (in thousands)		$173			$180
Ratio of expenses to average net assets			0.90	%(3)		0.91	%(3)
Ratio of net investment income to average net assets			4.55	%(3)		4.87	%(3)
Portfolio turnover rate			193	%		75	%(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, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	9.84		$	10.46		$	10.28		$	10.52		$	10.83		$	10.64
Income (loss) from      investment operations:
Net investment income			0.19	(2)		0.46	(2)		0.46			0.41			0.39			0.13
Net realized and unrealized           gain (loss) on investments		(0.58		)(2)		(0.62	)(2)		0.18			(0.24	)		(0.31	)		0.19
Total from investment operations		(0.39		)		(0.16	)		0.64			0.17			0.08			0.32
Less distributions from:
Net investment income		(0.19		)		(0.46	)		(0.46	)		(0.41	)		(0.39	)		(0.13	)
Capital gains		(0.00		)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions		(0.19		)		(0.46	)		(0.46	)		(0.41	)		(0.39	)		(0.13	)
Net asset value, end of period		$	9.26		$	9.84		$	10.46		$	10.28		$	10.52		$	10.83
Total return		- -3.91		%		- -1.60	%		6.43	%		1.62	%		0.75	%		3.03	%
Net assets, end of period      (in thousands)		$204			$24			$42			$20			$34			$25
Ratio of expenses to average      net assets including      expense wavier			1.36	%(3)		1.34	%		1.09	%		1.34	%		1.46	%		1.54	%(3)
Ratio of net investment income      to average net assets      including expense wavier			4.03	%(3)		4.42	%		4.60	%		3.91	%		3.65	%		3.99	%(3)
Ratio of expenses to average      net assets excluding      expense wavier			1.58	%(3)		1.34	%(4)		1.09	%(4)		1.34	%(4)		1.46	%(4)		1.54	%(3)(4)
Ratio of net investment income      to average net assets      excluding expense wavier			3.80	%(3)		4.42	%(4)		4.60	%(4)		3.91	%(4)		3.65	%(4)		3.99	%(3)(4)
Portfolio turnover rate			193	%		75	%		91	%		126	%		200	%		78	%(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 six months ended March 31, 2004.

See Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY GLOBAL BOND FUND

Portfolio Highlights

On September 30, 2008, Ivy Global Bond Fund had net assets totaling $39,171 (in thousands) invested in a diversified portfolio of:

39.98%	Cash and Cash Equivalents
24.46%	Other Government Securities
17.46%	Foreign Corporate Debt Securities
10.93%	United States Government and Government Agency Obligations
6.54%	Domestic Corporate Debt Securities
0.63%	Senior Loans

Sector Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:

Cash and Cash Equivalents and Senior Loans	$	40.61
Other Government Securities	$	24.46
United States Government and Government Agency Obligations	$	10.93
Financials Bonds	$	7.55
Industrials Bonds	$	5.35
Miscellaneous Bonds(1)	$	4.40
Consumer Staples Bonds	$	3.43
Materials Bonds	$	3.27

(1)Includes $1.25 Consumer Discretionary Bonds, $1.28 Energy Bonds and $1.87 Utilities Bonds.

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.

On Sept. 7, 2008, the Federal Housing Finance Agency (FHFA), an agency of the U.S. government, placed Fannie Mae and Freddie Mac into conservatorship, a statutory process with the objective of returning the entities to normal business operations. FHFA will act as the conservator to operate Fannie Mae and Freddie Mac until they are stabilized. It is unclear what effect this conservatorship will have on the securities issued or guaranteed by Fannie Mae or Freddie Mac.

Quality Weightings

On September 30, 2008, the breakdown of bonds (by ratings) held by the Fund was as follows:

Investment Grade
AAA	35.19	%
AA	1.86	%
A	1.23	%
BBB	7.96	%
Non-Investment Grade
BB	8.82	%
B	2.19	%
Non-Rated	2.77	%
Cash and Cash Equivalents	39.98	%

Ratings reflected in the wheel are taken from Standard & Poor's and Moody's.

Country Weightings

As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested in geographic regions as follows:

Cash and Cash Equivalents	$	39.98
Europe	$	26.08
France	$	9.26
United Kingdom	$	6.25
Other Europe(1)	$	3.76
Russia	$	2.47
Switzerland	$	2.35
Norway	$	1.99
North America	$	22.99
United States	$	18.10
Other North America(2)	$	4.89
Pacific Basin(3)	$	3.65
South America(4)	$	2.79
Middle East(5)	$	1.86
Bahamas/Caribbean(6)	$	1.80
Other(7)	$	0.85

(1)Includes $1.79 Germany, $0.51 Ireland, $0.80 Luxembourg and $0.66 Netherlands.

(2)Includes $4.30 Canada and $0.59 Mexico.

(3)Includes $0.41 Australia, $0.64 Burma, $0.88 China, $1.08 Hong Kong and $0.64 Indonesia.

(4)Includes $2.79 Brazil.

(5)Includes $1.86 United Arab Emirates.

(6)Includes $0.58 Bahamas, $0.62 British Virgin Islands and $0.60 Cayman Islands.

(7)Includes $0.85 Panama.

The Investments of Ivy Global Bond Fund
September 30, 2008
(In Thousands)                                                                                                                     (Unaudited)
CORPORATE DEBT SECURITIES		Principal		Value
Agriculture - 0.96%
Ciliandra Perkasa Finance Company Pte. Ltd.,
10.750%, 12-8-11			$ 250	$	249
Independencia International Ltd.,
9.875%, 5-15-15			150		124
					373
Banking - 0.89%
Banco BMG S.A.,
8.750%, 7-1-10			167		160
VTB Capital S.A.,
6.609%, 10-31-12			250		190
					350
Beverage / Bottling - 2.86%
AmBev International Finance Co. Ltd.,
9.500%, 7-24-17 (A)	BRL450				177
Diageo Finance B.V.,
5.500%, 4-1-13			$ 250		252
Miller Brewing Company,
5.500%, 8-15-13			350		358
Panamerican Beverages, Inc.,
7.250%, 7-1-09			325		333
					1,120
Conglomerate / Diversified Mfg - 3.63%
BAE Systems Holdings Inc.,
4.750%, 8-15-10 (C)			500		507
Bombardier Inc.,
6.750%, 5-1-12			250		245
Ingersoll-Rand Global Holding Company Limited,
6.000%, 8-15-13			250		249
Noble Group Limited,
8.500%, 5-30-13			500		425
					1,426
Electric - 1.86%
Abu Dhabi National Energy Company PJSC,
5.620%, 10-25-12			750		727
Finance Companies - 2.54%
C5 Capital (SPV) Limited,
6.196%, 12-31-49 (B)			250		241
ISA Capital do Brasil S.A.,
7.875%, 1-30-12			250		240
Toyota Motor Credit Corporation,
6.750%, 9-21-09 (A)	NZD769				512
					993
Food Processors - 0.29%
Sadia Overseas Ltd.,
6.875%, 5-24-17			$ 150		115
Food Processors / Bev / Bottling - 0.60%
Iansa Overseas Limited,
7.250%, 7-28-12			250		236
Leisure - 0.62%
Royal Caribbean Cruises Ltd.,
8.750%, 2-2-11			250		243
Metals / Mining - 3.22%
ALROSA Finance S.A.,
8.875%, 11-17-14			250		206
Evraz Group S.A.,
8.875%, 4-24-13			375		315
Indo Integrated Energy B.V.,
8.500%, 6-1-12			300		259
Peabody Energy Corporation,
6.875%, 3-15-13			250		241
Vedanta Resources plc,
6.625%, 2-22-10			250		238
					1,259
Paper / Forest Products - 1.52%
International Paper Company,
7.400%, 6-15-14			250		250
Sino-Forest Corporation,
9.125%, 8-17-11			350		347
					597
Publishing - 0.90%
Pearson Dollar Finance Two plc,
5.500%, 5-6-13			350		354
Service - Other - 1.15%
Allied Waste Industries, Inc.,
6.500%, 11-15-10			250		245
Waste Management, Inc.,
7.375%, 8-1-10			200		207
					452
Transportation - Other - 0.58%
Ultrapetrol (Bahamas) Limited,
9.000%, 11-24-14			250		228
Utilities - 0.70%
CESP - Companhia Energetica de Sao Paulo,
9.750%, 1-15-15 (A)	BRL500				272
Utilities - Water - 0.63%
Veolia Environnement,
5.250%, 6-3-13			$ 250		246
Wireless - 1.05%
Mobile TeleSystems OJSC,
8.700%, 6-12-18 (A)	RUB6,000				213
VIP Finance Ireland Limited,
8.375%, 4-30-13			$ 250		199
					412
TOTAL CORPORATE DEBT SECURITIES - 24.00%				$	9,403
(Cost: $10,095)
SENIOR LOANS
Consumer Products
Wm. Wrigley Jr. Company,
0.000%, 7-17-14 (B)			250		245
TOTAL SENIOR LOANS - 0.63%				$	245
(Cost: $248)

OTHER GOVERNMENT SECURITIES
Australia - 0.41%
Commonwealth of Australia Treasury Bonds,
5.750%, 6-15-11 (A)	AUD200		161
Canada - 3.68%
Canadian Government Bonds,
4.000%, 9-1-10 (A)	CAD1,500		1,441
France - 8.63%
French Treasury Notes (BTAN),
3.750%, 9-12-10 (A)	EUR2,400		3,382
Germany - 1.79%
Bundesobligation,
3.250%, 4-9-10 (A)	EUR500		701
Mexico - 0.59%
United Mexican States Government Bonds,
9.000%, 12-24-09 (A)	MXN2,500		231
Norway - 1.99%
Norway Government Bonds:
5.500%, 5-15-09 (A)	NOK1,250		212
6.000%, 5-16-11 (A)	3,200		566
			778
Russia - 0.92%
Open Joint Stock Company "Russian Railroads",
8.500%, 7-6-11 (A)	RUB10,000		358
Switzerland - 2.35%
Switzerland Government Bonds,
3.500%, 8-7-10 (A)	CHF1,000		921
United Kingdom - 4.10%
United Kingdom Treasury,
4.250%, 3-7-11 (A)	GBP900		1,607
TOTAL OTHER GOVERNMENT SECURITIES - 24.46%		$	9,580
(Cost: $10,104)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations
Federal Home Loan Mortgage Corporation Agency       REMIC/CMO (Interest Only),
5.500%, 1-15-38 (D)	$ 3,701		$	783
Federal National Mortgage Association Agency REMIC/CMO,
5.000%, 2-25-35	485			482
Federal National Mortgage Association Agency REMIC/CMO       (Interest Only): (D)
5.000%, 6-25-22		1,164		157
5.000%, 7-25-23		975		177
5.500%, 1-25-33		1,635		317
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
5.000%, 3-1-22		805		800
5.000%, 8-1-23		398		396
Government National Mortgage Association Agency       REMIC/CMO (Interest Only),
5.000%, 7-16-22 (D)		1,039		117
Government National Mortgage Association Fixed Rate       Pass-Through Certificates,
4.500%, 6-15-23		393		389
TOTAL UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS - 9.24%			$	3,618
(Cost: $3,568)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations
United States Treasury Notes:
1.625%, 1-15-18 (E)		315		298
1.750%, 1-15-28 (E)		420		365
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 1.69%			$	663
(Cost: $675)
SHORT-TERM SECURITIES
Repurchase Agreements
J.P. Morgan Securities, Inc., Repurchase Agreement       dated 9-30-08 to be repurchased at $15,821,
0.050%, 10-1-08 (F)	15,821			15,821
TOTAL SHORT-TERM SECURITIES - 40.39%			$	15,821
(Cost: $15,821)

TOTAL INVESTMENT SECURITIES - 100.41%	$	39,330
(Cost: $40,511)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.41%)		(159	)
NET ASSETS - 100.00%	$	39,171

Notes to Schedule of Investments
The following forward currency contracts were outstanding at September 30, 2008:
	Type	Currency	Currency Amount Covered by Contract		Settlement Date	Unrealized Appreciation			Unrealized Depreciation
	Sell	Australian Dollar		203	8-27-09		$	13		$	-
	Sell	Brazilian Real		978	1-7-09			27			-
	Buy	British Pound		1	1-12-09			-			-*
	Sell	British Pound		911	8-24-09			65			-
	Sell	Canadian Dollar		1,563	8-24-09			-			-*
	Buy	Chinese Yuan Renminbi		700	6-17-09			-			6
	Buy	Chinese Yuan Renminbi		5,200	9-29-09			-			1
	Buy	Chinese Yuan Renminbi		2,600	6-17-10			-			34
	Buy	Chinese Yuan Renminbi		1,000	6-18-10			-			15
	Buy	Chinese Yuan Renminbi		1,600	6-21-10			-			26
	Buy	Chinese Yuan Renminbi		2,300	7-12-10			-			38
	Buy	Chinese Yuan Renminbi		2,000	7-14-10			-			34
	Sell	Euro		470	8-13-09			28			-
	Sell	Euro		2,471	8-21-09			111			-
	Sell	Mexican Peso		2,600	1-7-09			7			-
	Sell	New Zealand Dollar		814	9-21-09			-			20
	Sell	Norwegian Krone		4,700	1-15-09			9			-
	Sell	Russian Ruble		15,700	1-15-09			-			3
							$	260		$	177

*Not shown due to rounding as amount is less than 500.

(A)Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, BRL - Brazilian Real, CAD - Canadian Dollar, CHF - Swiss Franc, EUR - Euro, GBP - British Pound, MXN - Mexican Peso, NOK - Norwegian Krone, NZD - New Zealand Dollar and RUB - Russian Ruble).

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

(C)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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of this security amounted to 1.29% of net assets.

(D)Amount shown in principal column represents notional amount for computation of interest.

(E)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.

(F)Collateralized by $14,192 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $16,030.

The following acronyms are used throughout this portfolio:
CMO = Collateralized Mortgage Obligation
REMIC = Real Estate Mortgage Investment Conduit

	Country Diversification
	(as a % of net assets)
	United States	58.08%
	France	9.26%
	United Kingdom	6.25%
	Canada	4.30%
	Other	22.11%
See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY GLOBAL BOND FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value:
Securities (cost - $24,690)	$	23,509
Repurchase agreement (cost - $15,821)		15,821
		39,330
Receivables:
Investment securities sold		2,813
Dividends and interest		313
Fund shares sold		202
Unrealized appreciation on forward currency contracts		260
Prepaid and other assets		86
Total assets		43,004
LIABILITIES
Due to custodian		2,476
Payable for investment securities purchased		1,062
Unrealized depreciation on forward currency contracts		177
Payable to Fund shareholders		87
Accrued management fee		20
Accrued distribution and service fees		6
Accrued shareholder servicing		3
Accrued accounting services fee		2
Total liabilities		3,833
Total net assets	$	39,171
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	40,144
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		253
Accumulated net realized loss on investment transactions		(122	)
Net unrealized depreciation in value of investments		(1,104	)
Net assets applicable to outstanding units of capital	$	39,171
Net asset value per share (net assets divided by shares outstanding):
Class A	$9.76
Class B	$9.73
Class C	$9.73
Class I	$9.78
Class Y	$9.77
Capital shares outstanding:
Class A		1,406
Class B		531
Class C		953
Class I		505
Class Y		621

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY GLOBAL BOND FUND
      For the Period from April 4, 2008⁽¹⁾ through September 30, 2008
      (In Thousands)                                                                                                                (Unaudited)

INVESTMENT INCOME
Income:
Interest and amortization	$	439
Expenses:
Investment management fee		88
Distribution and service fees:
Class A		12
Class B		21
Class C		26
Class Y		6
Registration fees		40
Shareholder servicing:
Class A		4
Class B		––	*
Class C		1
Class I		3
Class Y		4
Accounting services fee		11
Custodian fees		9
Legal fees		6
Audit fees		––	*
Other		6
Total		237
Less expenses in excess of limit		(63	)
Total expenses		174
Net investment income		265
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized net loss on securities		(120	)
Realized net loss on forward currency contracts		(2	)
Realized net loss on foreign currency transactions		(12	)
Realized net loss on investments		(134	)
Unrealized depreciation in value of securities during the period	(1,181		)
Unrealized appreciation in value of forward currency contracts             during the period		83
Unrealized depreciation in value of foreign currency exchange             transactions during the period		(6	)
Unrealized depreciation in value of investments during the period	(1,104		)
Net loss on investments	(1,238		)
Net decrease in net assets resulting from operations	$	(973	)

*Not shown due to rounding.

(1)Commencement of operations.

See Accompanying Notes to Financial Statements.

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

	For the period from 4-4-08(1) through
	9-30-08
INCREASE IN NET ASSETS
Operations:
Net investment income		$	265
Realized net loss on investments			(134	)
Unrealized depreciation			(1,104	)
Net decrease in net assets resulting from operations			(973	)
Distributions to shareholders from:(2)
Net investment income:
Class A			(––	)
Class B			(––	)
Class C			(––	)
Class I			(––	)
Class Y			(––	)
Realized gains on investment transactions:
Class A			(––	)
Class B			(––	)
Class C			(––	)
Class I			(––	)
Class Y			(––	)
			(––	)
Capital share transactions			40,144
Total increase			39,171
NET ASSETS
Beginning of period			––
End of period		$	39,171
Accumulated undistributed net investment income		$	253

(1)Commencement of operations.

(2)See "Financial Highlights" on pages 272 - 276.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL BOND FUND⁽¹⁾
      Class A Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                                (Unaudited)

	For the period from 4-4-08(2) through
	9-30-08
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income			0.11	(3)
Net realized and unrealized loss on investments			(0.35	)(3)
Total from investment operations			(0.24	)
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	9.76
Total return(4)			- -2.40	%
Net assets, end of period (in millions)		$14
Ratio of expenses to average net assets including expense waiver			1.04	%(5)
Ratio of net investment income to average net assets       including expense waiver			2.18	%(5)
Ratio of expenses to average net assets excluding expense waiver			1.49	%(5)
Ratio of net investment income to average net assets       excluding expense waiver			1.73	%(5)
Portfolio turnover rate			1	%

(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

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

(5)Annualized.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL BOND FUND⁽¹⁾
      Class B Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                                 (Unaudited)

	For the period from 4-4-08(2) through
	9-30-08
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income			0.06	(3)
Net realized and unrealized loss on investments			(0.33	)(3)
Total from investment operations			(0.27	)
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	9.73
Total return			- -2.70	%
Net assets, end of period (in millions)		$5
Ratio of expenses to average net assets including expense waiver			1.78	%(4)
Ratio of net investment income to average net assets       including expense waiver			1.28	%(4)
Ratio of expenses to average net assets excluding expense waiver			2.18	%(4)
Ratio of net investment income to average net assets       excluding expense waiver			0.88	%(4)
Portfolio turnover rate			1	%

(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

(4)Annualized.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL BOND FUND⁽¹⁾
      Class C Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                                 (Unaudited)

	For the period from 4-4-08(2) through
	9-30-08
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income			0.07	(3)
Net realized and unrealized loss on investments			(0.34	)(3)
Total from investment operations			(0.27	)
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	9.73
Total return			- -2.70	%
Net assets, end of period (in millions)		$9
Ratio of expenses to average net assets including expense waiver			1.75	%(4)
Ratio of net investment income to average net assets       including expense waiver			1.42	%(4)
Ratio of expenses to average net assets excluding expense waiver			2.16	%(4)
Ratio of net investment income to average net assets       excluding expense waiver			1.01	%(4)
Portfolio turnover rate			1	%

(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

(4)Annualized.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL BOND FUND⁽¹⁾
      Class I Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                                 (Unaudited)

	For the period from 4-4-08(2) through
	9-30-08
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income			0.11	(3)
Net realized and unrealized loss on investments			(0.33	)(3)
Total from investment operations			(0.22	)
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	9.78
Total return			- -2.20	%
Net assets, end of period (in millions)		$5
Ratio of expenses to average net assets including expense waiver			0.80	%(4)
Ratio of net investment income to average net assets       including expense waiver			2.25	%(4)
Ratio of expenses to average net assets excluding expense waiver			1.29	%(4)
Ratio of net investment income to average net assets       excluding expense waiver			1.76	%(4)
Portfolio turnover rate			1	%

(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

(4)Annualized.

See Accompanying Notes to Financial Statements.

Financial Highlights
      IVY GLOBAL BOND FUND ⁽¹⁾
      Class Y Shares
      For a Share of Capital Stock Outstanding Throughout the Period:                                (Unaudited)

	For the period from 4-4-08(2) through
	9-30-08
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income			0.10	(3)
Net realized and unrealized loss on investments			(0.33	)(3)
Total from investment operations			(0.23	)
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	9.77
Total return			- -2.30	%
Net assets, end of period (in millions)		$6
Ratio of expenses to average net assets including expense waiver			1.04	%(4)
Ratio of net investment income to average net assets       including expense waiver			2.05	%(4)
Ratio of expenses to average net assets excluding expense waiver			1.54	%(4)
Ratio of net investment income to average net assets       excluding expense waiver			1.55	%(4)
Portfolio turnover rate			1	%

(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

(4)Annualized.

See Accompanying Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY MORTGAGE SECURITIES FUND

Portfolio Highlights

On September 30, 2008, Ivy Mortgage Securities Fund had net assets totaling $234,157 (in thousands) invested in a diversified portfolio of:

50.18%	Corporate Bonds
47.98%	United States Government and Government Agency Obligations
1.84%	Cash and Cash Equivalents

Quality Weightings

On September 30, 2008, the breakdown of bonds (by ratings) held by the Fund was as follows:

Investment Grade
AAA	73.88	%
AA	6.99	%
A	4.19	%
BBB	5.81	%
Non-Investment Grade
BB	2.37	%
Non-Rated	4.92	%
Cash and Cash Equivalents	1.84	%

Ratings reflected in the wheel are taken from Standard & Poor's and Moody's.

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.

On Sept. 7, 2008, the Federal Housing Finance Agency (FHFA), an agency of the U.S. government, placed Fannie Mae and Freddie Mac into conservatorship, a statutory process with the objective of returning the entities to normal business operations. FHFA will act as the conservator to operate Fannie Mae and Freddie Mac until they are stabilized. It is unclear what effect this conservatorship will have on the securities issued or guaranteed by Fannie Mae or Freddie Mac.

The Investments of Ivy Mortgage Securities Fund
September 30, 2008
(In Thousands)                                                                                                                    (Unaudited)
CORPORATE DEBT SECURITIES	Principal			Value
Car Loan - 0.90%
Capital Auto Receivables Asset Trust 2006-1,
7.160%, 1-15-13 (A)	$	1,140		$	1,081
Capital Auto Receivables Asset Trust 2007-2,
8.300%, 2-18-14 (A)		1,105			1,021
					2,102
Other Mortgage-Backed Securities - 46.87%
Aames Mortgage Trust 2001-4,
6.650%, 1-25-32 (B)		413			336
ABFS Mortgage Loan Trust 2001-2,
6.990%, 12-25-31 (B)		859			660
ABFS Mortgage Loan Trust 2002-4,
7.423%, 12-15-33 (B)		1,469			931
Asset Securitization Corporation,
7.675%, 2-14-43 (B)		1,430			946
Asset Securitization Corporation (Interest Only):
1.589%, 10-13-26 (A)(B)(C)		3,866			112
8.621%, 8-13-29 (B)(C)		1,186			233
Associates Manufactured Housing Contract       Pass-Through Certificates,
7.900%, 3-15-27 (B)		630			635
Banc of America Alternative Loan Trust 2004-11,
6.000%, 12-25-34		1,024			832
Banc of America Alternative Loan Trust 2005-10,
5.668%, 11-25-35 (B)		1,134			373
Banc of America Alternative Loan Trust 2005-12,
5.809%, 1-25-36 (B)		1,600			740
Banc of America Alternative Loan Trust 2005-6,
6.000%, 7-25-35		797			567
Banc of America Alternative Loan Trust 2005-8:
5.582%, 9-25-35 (B)		397			194
5.582%, 9-25-35 (B)		1,998			1,033
Banc of America Alternative Loan Trust 2006-4:
6.224%, 5-25-46 (B)		882			240
6.224%, 5-25-46 (B)		631			286
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2002-2,
6.200%, 7-11-43 (A)		1,200			1,005
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2003-1,
4.900%, 9-11-36 (A)		1,000			773
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2004-6,
5.104%, 12-10-42 (A)(B)		800			570
Banc of America Funding 2004-2 Trust,
6.500%, 7-20-32		1,181			1,067
Banc of America Funding Corporation,
5.013%, 9-20-34 (B)		1,139			871
Banc of America Mortgage 2007-1 Trust,
6.000%, 3-25-37		3,572			1,507
Banc of America Mortgage Alternative Loan Trust 2003-5,
5.500%, 7-25-33		1,248			406
Banc of America Mortgage Trust 2003-9,
5.500%, 12-25-33		801			455
Banc of America Mortgage Trust 2004-1,
5.500%, 2-25-34		1,910			1,623
Banc of America Mortgage Trust 2004-2:
5.000%, 3-25-19		216			166
5.000%, 3-25-19		277			241
5.500%, 3-25-34		471			386
Banc of America Mortgage Trust 2004-3:
4.875%, 4-25-19		201			146
4.875%, 4-25-19		375			313
Banc of America Mortgage Trust 2004-7,
5.750%, 8-25-34		978			886
Banc of America Structured Securities Trust 2002-X1 F,
6.274%, 10-11-33 (D)		1,750			1,653
BankAmerica Manufactured Housing Contract Trust:
7.800%, 10-10-26		1,549			1,579
7.015%, 1-10-28 (B)		660			661
Bear Stearns Commercial Mortgage Securities Inc.,       Series 2000-WF1 Trust Fund,
6.500%, 2-15-32		1,015			874
Bear Stearns Commercial Mortgage Securities Trust       2002-TOP6,
6.000%, 10-15-36 (A)(B)		938			488
BlackRock Capital Finance,
7.750%, 9-25-26 (A)		515			283
C-Bass 2005-CB3 Trust,
5.109%, 12-25-34 (B)		1,254			1,219
C-Bass 2006-MH1 Trust,
5.970%, 10-25-36 (A)(B)		1,399			1,225
C-Bass Mortgage Loan Trust 2007-CB2,
5.891%, 2-25-37 (B)		289			282
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35 (B)		2,301			1,968
Chase Mortgage Finance Trust, Series 2003-S11,
5.500%, 10-25-33		830			761
CHEQ Home Equity Loan Trust, Series 2006-S2,
3.317%, 7-25-27 (B)		446			427
CHL Mortgage Pass-Through Trust 2002-32,
5.544%, 1-25-33 (B)(D)		1,252			814
CHL Mortgage Pass-Through Trust 2003-HYB2,
3.943%, 7-19-33 (B)		1,728			1,589
Citicorp Residential Mortgage Trust Series 2006-2,
5.872%, 9-25-36 (B)		220			219
CitiMortgage Alternative Loan Trust, Series 2006-A7,
6.000%, 12-25-36 (B)		3,417			2,427
CitiMortgage Alternative Loan Trust, Series 2007-A7,
6.238%, 7-25-37 (B)		639			41
Collateralized Mortgage Obligation Trust,
5.000%, 7-1-18		28			28
COMM 2006-CNL2,
5.756%, 2-5-19 (A)(B)		925			742
Commercial Mortgage Asset Trust,
7.800%, 11-17-32 (B)		1,000			1,045
Conseco Finance Securitizations Corp.,
6.981%, 6-15-32 (B)		673			652
CountryPlace Manufactured Housing Contract Trust 2005-1,
4.800%, 12-15-35 (B)(D)		1,275			1,058
Countrywide Home Loans Alternative Loan Trust 2004-J9,
4.586%, 10-25-34 (B)		1,325			1,257
Countrywide Home Loans, Inc. Asset-Backed Certificates,       Series 2005-10,
4.915%, 2-25-36 (B)		5,000			4,166
Credit Suisse First Boston Mortgage Securities Corp.,
6.000%, 11-25-18		398			345
CSAB Mortgage-Backed Trust 2006-2,
6.080%, 9-25-36 (B)		3,540			1,846
CSFB Commercial Mortgage Trust 2003-C4,
5.322%, 8-15-36 (A)(B)		1,000			528
CWHEQ Home Equity Loan Trust, Series 2006-S3,
6.518%, 1-25-29 (B)		2,135			433
FFCA Secured Lending Corporation:
4.098%, 2-18-22 (B)(D)		1,000			949
3.848%, 2-18-22 (B)(D)		1,500			1,438
First Horizon Mortgage Pass-Through Trust 2003-8,
5.132%, 10-25-33 (B)		358			205
First Horizon Mortgage Pass-Through Trust 2007-4,
5.500%, 8-25-22		1,039			943
Flagstar Home Equity Loan Trust 2007-1,
5.997%, 1-25-35 (A)(B)		1,630			960
Ford Credit Auto Owner Trust 2006-B,
7.120%, 2-15-13 (A)		635			477
Ford Credit Auto Owner Trust 2007-A,
7.050%, 12-15-13 (A)		390			280
Global Mortgage Securitization 2005-A Ltd. and Global       Mortgage Securitization 2005-A LLC:
5.394%, 4-25-32 (B)		1,127			683
5.250%, 4-25-32		725			662
Global Mortgage Securitization Ltd. and Global Mortgage       Securitization, LLC:
5.250%, 11-25-32 (D)		990			826
5.250%, 11-25-32 (D)		462			421
GMAC Commercial Mortgage Securities,
5.940%, 7-1-13 (A)		69			65
Green Tree Financial Corporation:
7.650%, 4-15-19		528			537
8.300%, 11-15-19		374			377
9.100%, 4-15-25		1,075			1,093
9.000%, 6-15-25 (B)		1,052			1,040
Home Equity Loan Trust 2003-HS2,
5.090%, 7-25-33 (B)		83			76
Hometown Commercial Capital, LLC Hometown       Commercial Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38 (D)		2,003			1,562
Impac CMB Trust Series 2003-2F,
6.000%, 1-25-33 (B)		783			505
J.P. Morgan Alternative Loan Trust 2006-A6,
5.950%, 11-25-36 (B)		2,500			1,592
J.P. Morgan Chase Commercial Mortgage Securities Corp.,
6.221%, 10-12-37 (A)(B)		2,300			2,000
J.P. Morgan Chase Commercial Mortgage Securities       Trust 2006-LDP8,
5.370%, 5-15-45		500			456
J.P. Morgan Mortgage Acquisition Trust 2006-CW2,
6.337%, 8-25-36 (B)		2,725			1,957
J.P. Morgan Mortgage Trust 2004-A3,
4.286%, 7-25-34 (B)		1,230			999
J.P. Morgan Mortgage Trust 2005-S2:
5.673%, 9-25-35 (B)		2,182			1,482
6.500%, 9-25-35		2,129			1,927
J.P. Morgan Mortgage Trust 2006-A2:
4.334%, 11-25-33 (B)		1,101			1,057
4.121%, 8-25-34 (B)		2,078			1,363
J.P. Morgan Mortgage Trust 2006-A6,
6.042%, 10-25-36 (B)		2,510			1,594
J.P. Morgan Mortgage Trust 2006-S3:
6.187%, 8-25-36		1,176			478
6.500%, 8-25-36		1,810			1,394
J.P. Morgan Mortgage Trust 2007-A1,
4.813%, 7-25-35 (B)		2,170			972
J.P. Morgan Mortgage Trust 2007-A2,
5.698%, 4-25-37 (B)		2,766			2,492
LB-UBS Commercial Mortgage Trust 2003-C3,
4.846%, 2-15-37 (A)(B)		300			222
Lehman Mortgage Trust Mortgage Pass-Through       Certificates, Series 2006-5,
6.881%, 9-25-36 (B)		1,992			251
Lehman XS Trust, Series 2005-8,
5.690%, 12-25-35		3,057			2,278
MASTR Asset Securitization Trust 2003-6,
5.500%, 7-25-33		1,520			1,394
Mid-State Capital Corporation 2004-1 Trust:
6.497%, 8-15-37		1,103			997
6.005%, 8-15-37		350			320
Morgan Stanley Capital I Trust 2003-IQ5,
6.092%, 4-15-38 (A)(B)		2,348			1,585
Morgan Stanley Dean Witter Capital I Inc. Trust 2002-WL1,
6.509%, 4-25-17 (B)		220			186
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4:
5.880%, 11-28-35 (B)(D)		680			306
5.880%, 11-28-35 (B)(D)		340			170
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4       (Interest Only),
1.166%, 11-28-35 (B)(C)(D)	24,823				300
Multi Security Asset Trust, Commercial Mortgage Pass-Through       Certificates, Series 2005-RR4,
5.000%, 11-28-35 (D)		2,000			1,600
NationsLink Funding Corporation, Commercial Mortgage       Pass-Through Certificates, Series 1998-2,
5.000%, 8-20-30 (A)		1,000			797
Oakwood Mortgage Investors, Inc.:
8.100%, 10-15-21 (D)		172			174
7.375%, 8-15-27		165			165
Office Portfolio Trust, Commercial Mortgage Pass-Through       Certificates, Series 2001-HRPT,
6.778%, 2-3-16 (A)		700			565
Origen Manufactured Housing Contract Trust 2004-A,
5.700%, 1-15-35 (B)		543			495
Origen Manufactured Housing Contract Trust 2004-B,
4.750%, 8-15-21		400			379
Origen Manufactured Housing Contract Trust 2005-A,
4.970%, 10-15-21		935			864
Origen Manufactured Housing Contract Trust 2005-B:
5.605%, 5-15-22		360			348
5.910%, 1-15-37		700			662
PHH Alternative Mortgage Trust, Series 2007-1, Class II-B-2,
6.000%, 2-25-37		1,544			198
Prudential Home Mortgage Securities:
6.730%, 4-28-24 (B)(D)		3			2
8.033%, 9-28-24 (A)(B)		19			14
RAMP Series 2005-RS1 Trust,
5.145%, 1-25-35 (B)		1,013			839
RASC Series 2003-KS10 Trust,
6.410%, 12-25-33 (B)		273			147
RBSGC Mortgage Loan Trust 2007-B,
5.450%, 7-25-35 (B)		2,868			2,287
RESI Finance Limited Partnership 2003-C and RESI       Finance DE Corporation 2003-C,
3.888%, 9-10-35 (B)(D)		1,400			988
RFMSI Series 2004-S5 Trust:
4.500%, 5-25-19		156			115
4.500%, 5-25-19		314			261
Salomon Brothers Mortgage Securities VII, Inc., Mortgage       Pass-Through Certificates, Series 1997-HUD1,
7.750%, 12-25-30 (B)		1,044			1,050
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21,
5.400%, 11-25-35 (B)		1,575			788
Structured Asset Mortgage Investments, Inc.:
5.654%, 4-30-30 (B)		8			6
5.654%, 4-30-30 (B)		17			15
Structured Asset Securities Corporation:
5.540%, 11-25-32 (B)		221			182
5.250%, 8-25-33		562			379
5.250%, 8-25-33		1,290			1,045
5.630%, 5-25-34 (B)		743			491
6.000%, 6-25-34 (B)		2,048			1,378
Vanderbilt Mortgage and Finance, Inc.,
7.955%, 12-7-24 (B)		448			455
Wachovia Bank Commercial Mortgage Trust (The),
4.942%, 11-15-34 (A)		964			662
Washington Mutual MSC Mortgage Pass-Through Certificates       Series 2002-MS11 Trust,
5.615%, 12-25-32 (B)		890			762
Wells Fargo Alternative Loan 2007-PA3 Trust:
6.197%, 7-25-37 (B)		1,552			312
6.197%, 7-25-37 (B)		1,775			717
5.750%, 7-25-37		1,079			774
Wells Fargo Mortgage Backed Securities 2003-2 Trust,
5.250%, 2-25-18 (D)		241			174
Wells Fargo Mortgage Backed Securities 2003-4 Trust,
5.500%, 6-25-33		915			594
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.250%, 8-25-33 (A)		1,110			625
Wells Fargo Mortgage Backed Securities 2005-16 Trust,
5.750%, 1-25-36		500			433
					109,756
Other Non-Agency REMIC/CMO - 0.15%
Banco Hipotecario Nacional:
7.916%, 7-25-09 (D)		23			- -	*
4.657%, 3-25-11 (B)(D)		10			- -	*
7.540%, 5-31-17 (D)		-	*		- -	*
Bear Stearns Mortgage Securities Inc.,
8.000%, 11-25-29		355			358
					358
Sequential - 2.26%
CHL Mortgage Pass-Through Trust 2003-28,
4.150%, 8-25-33		1,500			1,390
RALI Series 2003-QS10 Trust,
5.500%, 5-25-33		2,186			1,932
RALI Series 2003-QS11 Trust,
5.750%, 6-25-33		2,433			1,961
					5,283
TOTAL CORPORATE DEBT SECURITIES - 50.18%				$	117,499
(Cost: $160,960)
UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS
Agency Obligations - 0.17%
Federal Home Loan Bank,
3.625%, 12-17-10 (E)		400			402
Mortgage-Backed Obligations - 47.58%
Federal Home Loan Mortgage Association Fixed Rate       Participation Certificates,
5.000%, 10-1-34		3,380			3,292
Federal Home Loan Mortgage Corporation Adjustable       Rate Participation Certificates,
11.331%, 3-15-09 (B)		71			71
Federal Home Loan Mortgage Corporation Agency REMIC/CMO,
5.000%, 6-15-31		2,000			1,968

Federal Home Loan Mortgage Corporation Fixed Rate       Participation Certificates:
5.500%, 12-1-17		566		576
5.500%, 9-1-19		898		909
3.500%, 2-15-30		1,509		1,460
6.500%, 9-1-32		949		986
5.300%, 1-15-33		206		202
5.000%, 7-15-33		2,064		2,011
5.500%, 5-1-34		1,101		1,101
6.500%, 5-1-34		705		726
5.500%, 5-1-34		708		708
6.500%, 10-1-34		1,042		1,068
5.500%, 10-1-34		899		899
5.000%, 5-15-35		2,196		2,099
5.000%, 8-1-35		828		808
5.500%, 10-1-35		3,968		3,947
5.500%, 10-1-35		1,399		1,398
5.000%, 12-1-35		744		725
6.500%, 7-1-36		889		913
7.000%, 12-1-37		798		836
Federal National Mortgage Association Adjustable Rate       Pass-Through Certificates,
4.648%, 7-1-35 (B)		1,081		1,092
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
6.000%, 1-1-18		304		311
5.500%, 2-1-18		349		356
5.000%, 5-1-18		1,108		1,115
5.000%, 10-1-18		1,085		1,088
5.500%, 9-1-19		273		277
5.500%, 10-1-20		2,559		2,579
5.500%, 2-1-24		440		441
6.000%, 8-1-29		361		369
7.000%, 11-1-31		167		176
6.500%, 2-1-32		107		111
6.500%, 2-1-32		160		166
7.000%, 2-1-32		217		229
6.500%, 2-1-32		119		124
7.000%, 3-1-32		300		317
6.500%, 4-1-32		65		67
6.500%, 5-1-32		117		122
6.500%, 5-1-32		73		75
6.500%, 7-1-32		563		585
6.500%, 9-1-32		65		67
6.000%, 9-1-32		129		132
6.500%, 10-1-32		54		57
6.000%, 10-1-32		857		876
6.000%, 10-1-32		858		877
6.000%, 11-1-32		403		411
6.000%, 11-1-32		665		678
6.000%, 3-1-33		214		218
6.000%, 3-1-33		1,121		1,145
6.000%, 3-1-33		772		789
6.000%, 3-1-33		998		1,019
5.500%, 4-1-33		1,556		1,560
5.500%, 5-1-33		489		489
5.500%, 5-1-33		250		251
6.000%, 6-1-33		648		660
6.000%, 6-1-33		1,616		1,644
6.500%, 8-1-33		42		43
6.000%, 10-1-33		235		239
5.000%, 11-1-33		1,563		1,528
6.000%, 12-1-33		464		474
5.500%, 1-1-34		764		764
5.500%, 1-1-34		601		601
5.500%, 3-1-34		2,015		2,019
5.000%, 3-1-34		376		368
5.000%, 3-1-34		880		860
5.500%, 4-1-34		1,745		1,748
5.500%, 4-1-34		552		552
5.000%, 5-1-34		172		168
5.500%, 7-1-34		1,587		1,589
6.000%, 8-1-34		552		561
5.500%, 9-1-34		1,072		1,073
6.000%, 9-1-34		709		720
6.500%, 9-1-34		840		865
6.000%, 10-1-34	5,000			5,064
5.000%, 10-1-34		1,155		1,125
5.500%, 10-1-34		3,547		3,537
6.000%, 11-1-34		289		294
5.500%, 11-1-34		638		640
6.500%, 11-1-34		59		61
5.500%, 1-1-35		492		491
5.500%, 2-1-35		2,119		2,122
4.500%, 2-1-35		428		406
6.500%, 3-1-35		1,005		1,038
6.000%, 4-1-35		1,381		1,400
5.500%, 7-1-35		683		682
5.000%, 7-1-35		723		706
5.500%, 9-1-35		355		355
5.500%, 10-1-35		1,393		1,393
5.500%, 10-1-35		809		809
6.500%, 2-1-36		618		637
5.500%, 2-1-36		1,446		1,427
6.500%, 6-1-36		1,087		1,116
6.000%, 8-1-36		1,854		1,880
6.500%, 10-1-36		1,950		1,999
6.000%, 11-1-36		1,872		1,898
6.000%, 5-1-37		903		916
6.500%, 8-1-37		1,782		1,829
6.500%, 9-1-37		1,697		1,742
7.000%, 10-1-37		482		504
Government National Mortgage Association Agency       REMIC/CMO (Interest Only): (C)
0.933%, 3-16-34 (B)		6,731		213
0.773%, 7-16-40 (B)		3,462		91
0.178%, 3-16-42 (B)	12,203			81
1.228%, 6-17-45 (B)	18,376			766
Government National Mortgage Association Fixed Rate       Pass-Through Certificates:
7.875%, 5-15-17		577		593
6.250%, 7-15-24		217		223
5.500%, 3-16-32		4,575		4,624
5.000%, 7-15-33		866		851
5.000%, 7-15-34		759		746
5.500%, 12-15-34		1,345		1,350
5.000%, 1-15-35		1,503		1,476
5.500%, 10-1-35		2,975		2,978
5.000%, 12-15-35		1,731		1,701
United States Department of Veterans Affairs,       Guaranteed REMIC Pass-Through Certificates,       Vendee Mortgage Trust, 1995-1 Class 1,
7.207%, 2-15-25 (B)		205		217
United States Department of Veterans Affairs,       Guaranteed REMIC Pass-Through Certificates,       Vendee Mortgage Trust, 1995-1 Class 2,
7.793%, 2-15-25		62		66
				111,395
TOTAL UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS - 47.75%			$	111,797
(Cost: $113,056)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations
United States Treasury Notes,
4.500%, 3-31-12 (E)		500		532
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 0.23%			$	532
(Cost: $516)

SHORT-TERM SECURITIES
Commercial Paper - 11.64%
Air Products and Chemicals, Inc.,
1.500%, 10-1-08	$	4,178	$	4,178
Danaher Corporation,
1.750%, 10-6-08		4,000		3,999
E.I. du Pont de Nemours and Company,
2.100%, 10-22-08		5,000		4,994
Merck & Co., Inc.,
2.100%, 10-15-08		2,100		2,098
Pfizer Inc.,
1.800%, 10-8-08		5,000		4,998
Shell International Finance B.V. and Royal Dutch Shell plc       (Royal Dutch Shell plc),
2.100%, 10-9-08		7,000		6,997
				27,264
United States Government Obligations - 1.28%
United States Treasury Bills,
0.320%, 10-30-08		3,000		2,999
TOTAL SHORT-TERM SECURITIES - 12.92%			$	30,263
(Cost: $30,263)
TOTAL INVESTMENT SECURITIES - 111.08%			$	260,091
(Cost: $304,795)
LIABILITIES, NET OF CASH(E) AND OTHER ASSETS - (11.08%)				(25,934	)
NET ASSETS - 100.00%			$	234,157

Notes to Schedule of Investments

*Not shown due to rounding as amount is less than 500.

(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 liquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $16,080 or 6.87% of net assets.

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008.

(C)Amount shown in principal column represents notional amount for computation of interest.

(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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $12,435 or 5.31% of net assets.

(E)Serves as collateral for the following open futures contracts at September 30, 2008:
	Description	Type	Expiration Date	Number of Contracts	Market Value			Unrealized Appreciation (Depreciation)
	United States 10 Year       Treasury Note	Short	12-19-08	(324)		$	(37,139)		$	683
	United States 5 Year       Treasury Note	Short	12-31-08	(214)			(24,018)		(103)
						$	(61,157)		$	580
The following acronyms are used throughout this portfolio: CMO = Collateralized Mortgage Obligation REMIC = Real Estate Mortgage Investment Conduit
See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities
      IVY MORTGAGE SECURITIES FUND
      September 30, 2008
      (In Thousands, Except for Per Share Amounts)                                                          (Unaudited)

ASSETS
Investment securities - at value (cost - $304,795)	$	260,091
Receivables:
Investment securities sold		7,138
Interest		1,274
Variation margin - futures		905
Fund shares sold		273
Prepaid and other assets		128
Total assets		269,809
LIABILITIES
Payable for investment securities purchased		33,046
Payable for variation margin - futures		1,223
Payable to Fund shareholders		773
Due to custodian		227
Accrued shareholder servicing		122
Accrued management fee		98
Accrued distribution and service fees		88
Dividends payable		67
Accrued accounting services fee		8
Total liabilities		35,652
Total net assets	$	234,157
NET ASSETS
Capital paid in (shares authorized - unlimited)	$	286,233
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		––
Accumulated net realized loss on investment transactions		(7,952	)
Net unrealized depreciation in value of investments		(44,124	)
Net assets applicable to outstanding units of capital	$	234,157
Net asset value per share (net assets divided by shares outstanding):
Class A	$8.99
Class B	$8.99
Class C	$8.99
Class E	$8.99
Class I	$8.99
Class Y	$8.99
Capital shares outstanding:
Class A		22,802
Class B		921
Class C		1,496
Class E		33
Class I		29
Class Y		775

See Accompanying Notes to Financial Statements.

Statement of Operations
      IVY MORTGAGE SECURITIES FUND
      For the Six Months Ended September 30, 2008
      (In Thousands)                                                                                                                (Unaudited)

INVESTMENT INCOME
Income:
Interest and amortization	$	8,358
Expenses:
Investment management fee		660
Shareholder servicing:
Class A		424
Class B		29
Class C		27
Class E		1
Class I		––	*
Class Y		7
Distribution and service fees:
Class A		289
Class B		48
Class C		75
Class E		––	*
Class Y		10
Accounting services fee		49
Audit fees		23
Custodian fees		18
Legal fees		2
Other		111
Total		1,773
Less expenses in excess of limit		(—	)*
Total expenses		1,773
Net investment income		6,585
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized net loss on securities		(4,619	)
Realized net loss on futures		(136	)
Realized net loss on investments		(4,755	)
Unrealized depreciation in value of securities during the period		(14,961	)
Unrealized appreciation in value of futures contracts during the period		2,204
Unrealized depreciation in value of investments during the period		(12,757	)
Net loss on investments		(17,512	)
Net decrease in net assets resulting from operations	$	(10,927	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

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

	For the six months ended September 30,				For the fiscal year ended March 31,
		2008			2008
DECREASE IN NET ASSETS
Operations:
Net investment income		$	6,585		$	15,552
Realized net loss on investments			(4,755	)		(2,257	)
Unrealized depreciation			(12,757	)		(27,857	)
Net decrease in net assets resulting from operations			(10,927	)		(14,562	)
Distributions to shareholders from:(1)
Net investment income:
Class A			(5,840	)		(13,698	)
Class B			(197	)		(468	)
Class C			(320	)		(759	)
Class E			(7	)		(9	)
Class I			(7	)		(13	)
Class Y			(214	)		(605	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		(––	)
Class I			(––	)		(––	)
Class Y			(––	)		(––	)
			(6,585	)		(15,552	)
Capital share transactions			(41,326	)		1,606
Total decrease			(58,838	)		(28,508	)
NET ASSETS
Beginning of period			292,995			321,503
End of period		$	234,157		$	292,995
Accumulated undistributed net investment income		$	––		$	––

(1)See "Financial Highlights" on pages 295 - 300.

See Accompanying 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
	9-30-08				2008			2007			2006			2005		3-31-04				9-30-03
Net asset value,      beginning of period		$	9.62		$	10.59		$	10.44		$	10.68		$	10.96		$	10.97		$	11.07
Income (loss)      from investment      operations:
Net investment           income			0.24			0.49			0.51			0.48			0.49			0.25			0.59
Net realized and           unrealized gain           (loss) on           investments		(0.63		)		(0.97	)		0.15			(0.24	)		(0.27	)		0.03			(0.12	)
Total from investment      operations		(0.39		)		(0.48	)		0.66			0.24			0.22			0.28			0.47
Less distributions from:
Net investment           income		(0.24		)		(0.49	)		(0.51	)		(0.48	)		(0.49	)		(0.25	)		(0.57	)
Capital gains		(0.00		)		(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.04	)		(0.00	)
Total distributions		(0.24		)		(0.49	)		(0.51	)		(0.48	)		(0.50	)		(0.29	)		(0.57	)
Net asset value,      end of period		$	8.99		$	9.62		$	10.59		$	10.44		$	10.68		$	10.96		$	10.97
Total return(1)	-4.12			%	-4.69		%		6.52	%		2.24	%		2.12	%		2.70	%		4.19	%(2)
Net assets, end      of period      (in millions)		$205			$256			$278			$243			$188			$134			$91
Ratio of expenses to      average net assets      including expense      waiver			1.27	%(3)		1.14	%		1.14	%		1.05	%		0.95	%		1.05	%(3)(4)		0.97	%
Ratio of net investment      income to average      net assets including      expense waiver			5.06	%(3)		4.80	%		4.90	%		4.51	%		4.59	%		4.56	%(3)(4)		5.27	%
Ratio of expenses      to average net      assets excluding      expense waiver			1.27	%(3)(5)		1.14	%(5)		1.14	%(5)		1.16	%		1.23	%		1.38	%(3)(4)		1.12	%
Ratio of net      investment income      to average      net assets excluding      expense waiver			5.06	%(3)(5)		4.80	%(5)		4.90	%(5)		4.40	%		4.31	%		4.22	%(3)(4)		5.12	%
Portfolio turnover rate			67	%		98	%		121	%		154	%		200	%		57	%		83	%

(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 4.28%.

(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 Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	9.62		$	10.59		$	10.44		$	10.68		$	10.96		$	10.87
Income (loss) from      investment operations:
Net investment income			0.19			0.39			0.40			0.36			0.37			0.12
Net realized and           unrealized gain (loss)           on investments		(0.63		)		(0.97	)		0.15			(0.24	)		(0.27	)		0.13
Total from investment operations		(0.44		)		(0.58	)		0.55			0.12			0.10			0.25
Less distributions from:
Net investment income		(0.19		)		(0.39	)		(0.40	)		(0.36	)		(0.37	)		(0.12	)
Capital gains		(0.00		)		(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.04	)
Total distributions		(0.19		)		(0.39	)		(0.40	)		(0.36	)		(0.38	)		(0.16	)
Net asset value, end of period		$	8.99		$	9.62		$	10.59		$	10.44		$	10.68		$	10.96
Total return	-4.60			%		- -5.62	%		5.45	%		1.12	%		0.92	%		2.32	%
Net assets, end of period      (in millions)		$8			$11			$12			$11			$7			$1
Ratio of expenses to      average net assets			2.25	%(2)		2.11	%		2.16	%		2.16	%		2.16	%		1.89	%(2)
Ratio of net investment      income to average      net assets			4.07	%(2)		3.82	%		3.88	%		3.41	%		3.29	%		3.59	%(2)
Portfolio turnover rate			67	%		98	%		121	%		154	%		200	%		57	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,      beginning of period		$	9.62		$	10.59		$	10.44		$	10.68		$	10.96		$	10.87
Income (loss) from      investment operations:
Net investment income			0.20			0.41			0.42			0.38			0.38			0.12
Net realized and           unrealized gain (loss)           on investments		(0.63		)		(0.97	)		0.15			(0.24	)		(0.27	)		0.13
Total from investment      operations		(0.43		)		(0.56	)		0.57			0.14			0.11			0.25
Less distributions from:
Net investment income		(0.20		)		(0.41	)		(0.42	)		(0.38	)		(0.38	)		(0.12	)
Capital gains		(0.00		)		(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.04	)
Total distributions		(0.20		)		(0.41	)		(0.42	)		(0.38	)		(0.39	)		(0.16	)
Net asset value, end of period		$	8.99		$	9.62		$	10.59		$	10.44		$	10.68		$	10.96
Total return	-4.49			%		- -5.43	%		5.69	%		1.34	%		1.05	%		2.32	%
Net assets, end of period      (in millions)		$14			$17			$19			$19			$12			$2
Ratio of expenses to      average net assets			2.02	%(2)		1.92	%		1.93	%		1.93	%		2.03	%		1.86	%(2)
Ratio of net investment      income to average      net assets			4.30	%(2)		4.02	%		4.11	%		3.63	%		3.41	%		3.61	%(2)
Portfolio turnover rate			67	%		98	%		121	%		154	%		200	%		57	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.62		$	10.59
Income (loss) from investment operations:
Net investment income			0.22			0.44
Net realized and unrealized loss on investments		(0.63		)		(0.97	)
Total from investment operations		(0.41		)		(0.53	)
Less distributions from:
Net investment income		(0.22		)		(0.44	)
Capital gains		(0.00		)		(0.00	)
Total distributions		(0.22		)		(0.44	)
Net asset value, end of period		$	8.99		$	9.62
Total return(2)		-4.29		%		- -5.20	%
Net assets, end of period (in thousands)		$297			$294
Ratio of expenses to average net assets       including expense waiver			1.61	%(3)		1.73	%(3)
Ratio of net investment income to average       net assets including expense waiver			4.73	%(3)		4.20	%(3)
Ratio of expenses to average net assets       excluding expense waiver			1.89	%(3)		1.73	%(3)(4)
Ratio of net investment income to average       net assets excluding expense waiver			4.45	%(3)		4.20	%(3)(4)
Portfolio turnover rate			67	%		98	%(5)

(1)Commencement of operations of the class.

(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.

(5)For the 12 months ended March 31, 2008.

See Accompanying Notes to Financial Statements.

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

	For the six months ended				For the period from 4-2-07(1) through
	9-30-08				3-31-08
Net asset value, beginning of period		$	9.62		$	10.59
Income (loss) from investment operations:
Net investment income			0.26			0.57
Net realized and unrealized loss on investments		(0.63		)		(0.97	)
Total from investment operations		(0.37		)		(0.40	)
Less distributions from:
Net investment income		(0.26		)		(0.57	)
Capital gains		(0.00		)		(0.00	)
Total distributions		(0.26		)		(0.57	)
Net asset value, end of period		$	8.99		$	9.62
Total return		- -3.88		%	-4.05		%
Net assets, end of period (in thousands)		$257			$251
Ratio of expenses to average net assets			0.79	%(2)		0.78	%(2)
Ratio of net investment income to average net assets			5.55	%(2)		5.15	%(2)
Portfolio turnover rate			67	%		98	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the 12 months ended March 31, 2008.

See Accompanying 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
	9-30-08				2008			2007			2006			2005			3-31-04
Net asset value,       beginning of period		$	9.62		$	10.59		$	10.44		$	10.68		$	10.96		$	10.87
Income (loss) from       investment operations:
Net investment income			0.25			0.51			0.52			0.48			0.48			0.15
Net realized and             unrealized gain (loss)             on investments		(0.63		)		(0.97	)		0.15			(0.24	)		(0.27	)		0.13
Total from investment       operations		(0.38		)		(0.46	)		0.67			0.24			0.21			0.28
Less distributions from:
Net investment income		(0.25		)		(0.51	)		(0.52	)		(0.48	)		(0.48	)		(0.15	)
Capital gains		(0.00		)		(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.04	)
Total distributions		(0.25		)		(0.51	)		(0.52	)		(0.48	)		(0.49	)		(0.19	)
Net asset value, end of period		$	8.99		$	9.62		$	10.59		$	10.44		$	10.68		$	10.96
Total return	-4.00			%	-4.57		%		6.66	%		2.26	%		1.95	%		2.56	%
Net assets, end of period       (in millions)		$7			$9			$13			$7			$6		$3
Ratio of expenses to       average net assets			1.02	%(2)		1.01	%		1.00	%		1.03	%		1.12	%		1.09	%(2)
Ratio of net investment       income to average       net assets			5.31	%(2)		4.93	%		5.04	%		4.53	%		4.41	%		4.38	%(2)
Portfolio turnover rate			67	%		98	%		121	%		154	%		200	%		57	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

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

See Accompanying Notes to Financial Statements.

Notes to Financial Statements
      September 30, 2008                                                                                                                   (Unaudited)
      (In Thousands, Except Where Otherwise Noted) 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, as amended, and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Trust issues seventeen 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 unde r 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, prior to translation.

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 m ay 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 4 - 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 continue to qualify as a regulated investment company under the Internal Revenue Code. Accordingly, provision has not been made for Federal income taxes. Management of the Trust periodically reviews all tax positions to assess that it is more likely than not that the position would be sustained upon examination by the relevant tax authority based on the technical merits of each position. As of September 30, 2008, management believes that under this standard no liability for unrecognized tax positions is required. The Trust is subject to examination by U.S. federal and state authorities for returns filed for years after 2004. See Note 5 - 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. Concentration of risk - For Ivy Managed European/Pacific Fund, Ivy Managed International Opportunities Fund, Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy International Balanced Fund, Ivy International Core Equity Fund, Ivy International Growth Fund, Ivy Pacific Opportunities Fund, Ivy Global Natural Resources Fund and Ivy Global Bond Fund, a Fund may have a significant investment in international securities. International investing involves additional risks, including currency fluctuations, political or economic conditions affecting the foreign country, investment and repatriation restrictions, and limited and less reliable investor information.

I. New accounting pronouncements - In March 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities - an amendment of FASB Statement No. 133" (SFAS 161). SFAS 161 amends and expands disclosures about derivative instruments and hedging activities. SFAS 161 requires qualitative disclosures about the objectives and strategies of derivative instruments, quantitative disclosures about the fair value amounts of and gains and losses on derivative instruments, and disclosures of credit-risk-related contingent features in hedging activities. SFAS 161 is effective for fiscal years beginning after November 15, 2008. The Trust will institute SFAS 161 during the fiscal year ending March 31, 2010 and its potential impact, if any, on its 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 Dividend Opportunities 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 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%
Ivy Managed European/       Pacific Fund	All levels	0.05%
Ivy Managed International       Opportunities Fund	All levels	0.05%
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 European Opportunities Fund	Up to $250 Million	1.00%
	Over $250 Million up to $500 Million	0.85%
	Over $500 Million	0.75%
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 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 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 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 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 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 Global Bond Fund	Up to $500 Million	0.625%
	Over $500 Million and up to $1 Billion	0.60%
	Over $1 Billion and up to $1.5 Billion	0.55%
	Over $1.5 Billion	0.50%
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%

These fees are accrued daily and are paid monthly. However, IICO has voluntarily agreed to waive its management fee for Ivy Dividend Opportunities Fund, Ivy Global Bond, 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 ended September 30, 2008, IICO voluntarily waived its fee as shown in the following table:

Ivy Global Bond Fund $ 56

Mackenzie Financial Corporation (MFC) serves as subadvisor to Ivy Global Natural Resources Fund under an agreement with IICO and receives a fee as follows:

Fund	Net Asset Breakpoints	Annual Rate
Ivy Global Natural Resources 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%

As of December 7, 2006, MFC also 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%

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 March 24, 2008, IICO serves as investment manager to Ivy Small Cap Value Fund.

From February 2, 2007 to March 24, 2008, BlackRock Capital Management, Inc. served as subadvisor to Ivy Small Cap Value Fund under an agreement with IICO and received a fee equal to, on an annual basis, 0.50% of the Fund's average net assets.

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		$	11.5
From	$	25	to	$	50		$	23.1
From	$	50	to	$	100		$	35.5
From	$	100	to	$	200		$	48.4
From	$	200	to	$	350		$	63.2
From	$	350	to	$	550		$	82.5
From	$	550	to	$	750		$	96.3
From	$	750	to	$	1,000		$	121.6
	$	1,000 and Over					$	148.5

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 and Administrative 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 and Advisor Class, for each shareholder account that was in existence at any time during the prior month: Ivy Balanced Fund, Ivy Dividend Opportunities 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, Ivy Global 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 that fee if the number of total shareholders accounts within the Complex (Waddell & Reed Advisors Funds, Waddell & Reed InvestEd Portfolios, 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, not to exceed $1.50 per shareholder account per month. Each Fund also reimburses WRSCO for certain out-of-pocket costs for all classe s. 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 Ivy Funds Distributor, Inc. (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, 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, 2008, IFDI received the following amounts in sales commissions and CDSC:

	Sales Commissions			CDSC
				Class A				Class B			Class C				Class E
Ivy Dividend Opportunities Fund		$	215		$	3			$	8		$	2			$	––
Ivy Small Cap Value Fund			124			1				3			––	*			––
Ivy Value Fund			29			––				2			––	*			––
Ivy Managed European/       Pacific Fund			164			––	*			2			1				––
Ivy Managed International       Opportunities Fund			302			––	*			1			1				––
Ivy Cundill Global Value Fund			257			1				35			3				––
Ivy European Opportunities Fund			304			1				26			2				––
Ivy International Balanced Fund			277			1				8			11				––
Ivy International Core       Equity Fund			261			3				2			2				––
Ivy International Growth Fund			78			––	*			8			1				––
Ivy Pacific Opportunities Fund		$	607		$	––	*		$	12		$	4			$	––
Ivy Balanced Fund			67			––	*			1			1				––
Ivy Global Natural       Resources Fund			2,784			9				275			146				––
Ivy Real Estate Securities Fund			394			––	*			9			1				––
Ivy Bond Fund			79			1				2			––	*			––
Ivy Global Bond Fund			25			1				––			––	*
Ivy Mortgage Securities Fund			122			––	*			11			––	*			––
*Not shown due to rounding.

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, 2008, IFDI paid the following amounts:

Ivy Dividend Opportunities Fund	$	254
Ivy Small Cap Value Fund		125
Ivy Value Fund		33
Ivy Managed European/Pacific Fund		145
Ivy Managed International Opportunities Fund		267
Ivy Cundill Global Value Fund		276
Ivy European Opportunities Fund		322
Ivy International Balanced Fund		327
Ivy International Core Equity Fund		387
Ivy International Growth Fund		102
Ivy Pacific Opportunities Fund		628
Ivy Balanced Fund		87
Ivy Global Natural Resources Fund		4,398
Ivy Real Estate Securities Fund		412
Ivy Bond Fund		78
Ivy Global Bond Fund		46
Ivy Mortgage Securities Fund		131

Under a Distribution and Service Plan for Class A, Class B, Class C, Class E, Class R and Class Y shares adopted by the Trust on behalf of each Fund (other than the Ivy Managed Funds) and a Distribution and Service Plan for Class A, Class B, Class C, Class E and Class Y shares adopted by the Trust on behalf of the Ivy Managed Funds, each Fund may pay certain amounts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For Class A shares, 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 (or compensate IFDI with respect to Ivy Managed Funds) 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.

For Class B shares and Class C shares, 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 (or compensate IFDI with respect to the Ivy Managed Funds) for amounts it expends in connection with the provision of personal services to Fund shareholders and/or maintenance of shareholder accounts.

For Class B shares and Class C shares, 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.

For Class E shares, 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 f ield 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.

For Class R shares of Ivy Global Natural Resources Fund and Ivy Real Estate Securities Fund, 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.

For Class Y shares, 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, 2008, IICO did not reimburse any expenses under this agreement.

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, 2008, IFDI reimbursed the Fund's service fees as shown:

Ivy Cundill Global Value Fund, Class Y	$	12
Ivy Global Natural Resources Fund, Class Y		204

Effective August 1, 2008, IICO, IFDI and WRSCO have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to cap the expenses for Ivy International Growth Fund, Class Y at the following level:

Fund and Class	Expense Limitation (as a percentage of average net assets of each Class)
Ivy International Growth Fund, Class Y		1.42%

During the six-month period ended September 30, 2008, IFDI reimbursed the Fund's fees as shown:

Ivy International Growth Fund, Class Y $ –– *

From June 2, 2008 to July 31, 2009, IICO, IFDI and WRSCO have contractually agreed to reimburse sufficient management fees, 12b-1 and/or shareholder servicing fees to cap the expenses for each Class of Ivy Global Bond Fund at the following levels for the specified classes:

Fund and Class	Expense Limitation (as a percentage of average net assets of each Class)
Ivy Global Bond Fund, Class A		0.99%
Ivy Global Bond Fund, Class B		1.74%
Ivy Global Bond Fund, Class C		1.74%
Ivy Global Bond Fund, Class I		0.74%
Ivy Global Bond Fund, Class Y		0.99%

During the six-month period ended September 30, 2008, IFDI reimbursed the Fund's fees as shown:

Ivy Global Bond Fund, Class A	$	2
Ivy Global Bond Fund, Class B		––
Ivy Global Bond Fund, Class C		––	*
Ivy Global Bond Fund, Class I		2
Ivy Global Bond Fund, Class Y		3
*Not shown due to rounding.

The Funds have adopted an Expense Reimbursement Plan regarding the Service Fees paid by Class A, Class B and Class C. The Plan allows for the current payment of expenses from prior years that were not paid at that time due to the respective Class at the 0.25% limit for reimbursement. In future years, should a Class have Service Fees below the 0.25% limit, IFDI could at that time request payment of some or all of the amounts disclosed below, still subject to the 0.25% limit:

	Class A		Class B			Class C
Ivy Dividend Opportunities Fund	$	41	$	––	*	$	18
Ivy Small Cap Value Fund		79		––	*		10
Ivy Value Fund		24		––	*		1
Ivy Cundill Global Value Fund		369		1			32
Ivy European Opportunities Fund		182		––	*		29
Ivy International Balanced Fund		123		––	*		25
Ivy International Core Equity Fund		96		1			27
Ivy International Growth Fund		218		1			6
Ivy Pacific Opportunities Fund		193		1			44
Ivy Balanced Fund		19		––	*		4
Ivy Global Natural Resources Fund		965		12			340
Ivy Real Estate Securities Fund		198		––	*		21
Ivy Bond Fund		29		––	*		6
Ivy Global Bond Fund		––		––			––
Ivy Mortgage Securities Fund		156		––	*		30

The Funds have not recorded a liability for this potential reimbursement since the obligation to reimburse for these unrecovered service fees ceases upon termination of the expense reimbursement plan.

Through July 31, 2009, IFDI and WRSCO have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to ensure that the total annual Class E operating expenses do not exceed the following levels for the specified Funds:

	Class E
Ivy Dividend Opportunities Fund		1.37%
Ivy Cundill Global Value Fund		1.59%
Ivy International Balanced Fund		1.33%
Ivy International Core Equity Fund		1.53%
Ivy Global Natural Resources Fund		1.27%
Ivy Real Estate Securities Fund		1.67%
Ivy Bond Fund		1.21%
Ivy Mortgage Securities Fund		1.14%

During the six-month period ended September 30, 2008, the following amounts were reimbursed as shown:

	Class E
Ivy Dividend Opportunities Fund		$	3
Ivy Cundill Global Value Fund			1
Ivy International Balanced Fund			2
Ivy International Core Equity Fund			2
Ivy Global Natural Resources Fund			7
Ivy Real Estate Securities Fund			1
Ivy Bond Fund			1
Ivy Mortgage Securities Fund			––	*
*Not shown due to rounding.

In addition, effective September 1, 2008, IFDI and WRSCO have voluntarily agreed to waive sufficient Fund Class Y expenses to ensure that Class Y expenses do not surpass Class A expenses. The affected Funds and the amount of the waivers were as follows:

	Class Y
Ivy European Opportunities Fund		$	––	*
Ivy Bond Fund			––	*
*Not shown due to rounding.

During the six-month period ended September 30, 2008, the Funds paid Trustees' regular compensation of $133, which is included in other expenses.

NOTE 3 - Investment Valuations

The Trust has instituted Financial Accounting Standards Board Statement of Financial Accounting Standards No.157, Fair Value Measurements (FAS 157). In accordance with FAS 157, fair value is defined as the price that each Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of each Fund's investments by the above FAS 157 fair value hierarchy levels as of September 30, 2008:

	Investments				Other Financial Instruments+
Ivy Dividend Opportunities Fund
Level 1 - Quoted Prices		$	196,621			$	––
Level 2 - Other Significant Observable Inputs			34,352				––
Level 3 - Significant Unobservable Inputs			––				––
Total		$	230,973			$	––
Ivy Small Cap Value Fund
Level 1 - Quoted Prices		$	117,599			$	––
Level 2 - Other Significant Observable Inputs			18,793				––
Level 3 - Significant Unobservable Inputs			––				––
Total		$	136,392			$	––
Ivy Value Fund
Level 1 - Quoted Prices		$	52,432			$	(181	)
Level 2 - Other Significant Observable Inputs			2,256				––
Level 3 - Significant Unobservable Inputs			––				(26	)
Total		$	54,688			$	(207	)
Ivy Managed European/Pacific Fund
Level 1 - Quoted Prices		$	51,731			$	––
Level 2 - Other Significant Observable Inputs			148				––
Level 3 - Significant Unobservable Inputs			––				––
Total		$	51,879			$	––
Ivy Managed International Opportunities Fund
Level 1 - Quoted Prices		$	111,938			$	––
Level 2 - Other Significant Observable Inputs,			239				––
Level 3 - Significant Unobservable Inputs			––				––
Total		$	112,177			$	––
Ivy Cundill Global Value Fund
Level 1 - Quoted Prices		$	159,303			$	22,709
Level 2 - Other Significant Observable Inputs			262,723				––
Level 3 - Significant Unobservable Inputs			––				––
Total		$	422,026			$	22,709
Ivy European Opportunities Fund
Level 1 - Quoted Prices		$	1,972			$	––
Level 2 - Other Significant Observable Inputs			349,798				––
Level 3 - Significant Unobservable Inputs			––	*			––
Total		$	351,770			$	––
Ivy International Balanced Fund
Level 1 - Quoted Prices		$	21,290			$	1,488
Level 2 - Other Significant Observable Inputs			274,334				––
Level 3 - Significant Unobservable Inputs			––				––
Total		$	295,624			$	1,488
Ivy International Core Equity Fund
Level 1 - Quoted Prices		$	10,919			$	(363	)
Level 2 - Other Significant Observable Inputs			269,330				––
Level 3 - Significant Unobservable Inputs			––				––
Total		$	280,249			$	(363	)
Ivy International Growth Fund
Level 1 - Quoted Prices		$	12,776			$	––
Level 2 - Other Significant Observable Inputs			173,709				––
Level 3 - Significant Unobservable Inputs			––				––
Total		$	186,485			$	––
Ivy Pacific Opportunities Fund
Level 1 - Quoted Prices		$	77,339			$	––
Level 2 - Other Significant Observable Inputs			301,055				––
Level 3 - Significant Unobservable Inputs			2,305				––
Total		$	380,699			$	––
Ivy Balanced Fund
Level 1 - Quoted Prices		$	66,998			$	––
Level 2 - Other Significant Observable Inputs			39,454				––
Level 3 - Significant Unobservable Inputs			25				––
Total		$	106,477			$	––
Ivy Global Natural Resources Fund
Level 1 - Quoted Prices		$	4,313,334			$	16,816
Level 2 - Other Significant Observable Inputs			1,214,499				––
Level 3 - Significant Unobservable Inputs			30,989				––
Total		$	5,558,822			$	16,816
Ivy Real Estate Securities Fund
Level 1 - Quoted Prices		$	397,134			$	––
Level 2 - Other Significant Observable Inputs			29,971				––
Level 3 - Significant Unobservable Inputs			––				––
Total		$	427,105			$	––
Ivy Bond Fund
Level 1 - Quoted Prices		$	348			$	200
Level 2 - Other Significant Observable Inputs			142,598				––
Level 3 - Significant Unobservable Inputs			1,683				––
Total		$	144,629			$	200
Ivy Global Bond Fund
Level 1 - Quoted Prices		$	––			$	83
Level 2 - Other Significant Observable Inputs			38,699				––
Level 3 - Significant Unobservable Inputs			631				––
Total		$	39,330			$	83
Ivy Mortgage Securities Fund
Level 1 - Quoted Prices		$	––			$	580
Level 2 - Other Significant Observable Inputs			255,626				––
Level 3 - Significant Unobservable Inputs			4,465				––
Total		$	260,091			$	580
+Other financial instruments are derivative instruments not reflected in the schedule of investments, such as options, futures, forward currency contracts and swap contracts. Options are shown at market value above, but only appreciation/depreciation is shown in the Statement of Assets and Liabilities.
*Not shown due to rounding.

The following tables are a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

	Investments				Other Financial Instruments+
Ivy Value Fund
Beginning balance 4-1-08		$	––			$	––
Net realized gain (loss)			––				(42	)
Net change in unrealized appreciation (depreciation)			––				33
Net purchases (sales)			––				(17	)
Transfers in and/or out of Level 3			––				––
Ending Balance 9-30-08		$	––			$	(26	)
Net change in unrealized appreciation           (depreciation) from investments still held           as of 9-30-08		$	––			$	33
Ivy European Opportunities Fund
Beginning balance 4-1-08		$	––	*		$	––
Net realized gain (loss)			––				––
Net change in unrealized appreciation (depreciation)			––	*			––
Net purchases (sales)			––				––
Transfers in and/or out of Level 3			––				––
Ending Balance 9-30-08		$	––	*		$	––
Net change in unrealized appreciation           (depreciation) from investments still held           as of 9-30-08		$	––	*		$	––
Ivy Pacific Opportunities Fund
Beginning balance 4-1-08		$	1,987			$	––
Net realized gain (loss)			––				––
Net change in unrealized appreciation (depreciation)			(432	)			––
Net purchases (sales)			750				––
Transfers in and/or out of Level 3			––				––
Ending Balance 9-30-08		$	2,305			$	––
Net change in unrealized appreciation           (depreciation) from investments still held           as of 9-30-08		$	130			$	––
Ivy Balanced Fund
Beginning balance 4-1-08		$	––			$	––
Net realized gain (loss)			6				––
Net change in unrealized appreciation (depreciation)			(2	)			––
Net purchases (sales)			(7	)			––
Transfers in and/or out of Level 3			28				––
Ending Balance 9-30-08		$	25			$	––
Net change in unrealized appreciation           (depreciation) from investments still held           as of 9-30-08		$	(2	)		$	––
Ivy Global Natural Resources Fund
Beginning balance 4-1-08		$	27,887			$	––
Net realized gain (loss)			960				––
Net change in unrealized appreciation (depreciation)			3,077				––
Net purchases (sales)			(935	)			––
Transfers in and/or out of Level 3			––				––
Ending Balance 9-30-08		$	30,989			$	––
Net change in unrealized appreciation           (depreciation) from investments still held           as of 9-30-08		$	(1,051	)		$	––
Ivy Bond Fund
Beginning balance 4-1-08		$	2,334			$	––
Net realized gain (loss)			––	*			––
Net change in unrealized appreciation (depreciation)			(73	)			––
Net purchases (sales)			(34	)			––
Transfers in and/or out of Level 3			(544	)			––
Ending Balance 9-30-08		$	1,683			$	––
Net change in unrealized appreciation           (depreciation) from investments still held           as of 9-30-08		$	(129	)		$	––
Ivy Global Bond Fund
Beginning balance 4-1-08		$	––			$	––
Net realized gain (loss)			––				––
Net change in unrealized appreciation (depreciation)			(134	)			––
Net purchases (sales)			1,021				––
Transfers in and/or out of Level 3			(256	)			––
Ending Balance 9-30-08		$	631			$	––
Net change in unrealized appreciation           (depreciation) from investments still held           as of 9-30-08		$	(134	)		$	––
Ivy Mortgage Securities Fund
Beginning balance 4-1-08		$	3,765			$	––
Net realized gain (loss)			1				––
Net change in unrealized appreciation (depreciation)			(183	)			––
Net purchases (sales)			(149	)			––
Transfers in and/or out of Level 3			1,031				––
Ending Balance 9-30-08		$	4,465			$	––
Net change in unrealized appreciation           (depreciation) from investments still held           as of 9-30-08		$	(214	)		$	––
+Other financial instruments are derivative instruments not reflected in the schedule of investments, such as options, futures, forward currency contracts and swap contracts. Options are shown at market value above, but only appreciation/depreciation is shown in the Statement of Assets and Liabilities.
*Not shown due to rounding.

NOTE 4 - Investment Securities Transactions

For the six-month period ended September 30, 2008, the cost of purchases and the proceeds from maturities and sales of investments securities, other than U.S. Government and short-term securities, were as follows:

	Purchases		Sales
Ivy Dividend Opportunities Fund	$	61,539	$	20,117
Ivy Small Cap Value Fund		55,663		61,516
Ivy Value Fund		16,322		19,391
Ivy Managed European/Pacific Fund		13,369		759
Ivy Managed International Opportunities Fund		35,164		1,105
Ivy Cundill Global Value Fund		126,050		126,999
Ivy European Opportunities Fund		222,000		247,743
Ivy International Balanced Fund		46,673		30,685
Ivy International Core Equity Fund		180,648		133,996
Ivy International Growth Fund		105,634		105,656
Ivy Pacific Opportunities Fund		274,758		257,496
Ivy Balanced Fund		22,658		13,405
Ivy Global Natural Resources Fund		9,043,003		9,341,959
Ivy Real Estate Securities Fund		96,512		70,301
Ivy Bond Fund		25,036		18,540
Ivy Global Bond Fund		20,210		83
Ivy Mortgage Securities Fund		1,735		31,154

Purchases and proceeds from maturities and sales of U.S. Government securities were:

	Purchases			Sales
Ivy Balanced Fund		$	––	$	261
Ivy Bond Fund			205,684		186,497
Ivy Global Bond Fund			4,279		36
Ivy Mortgage Securities Fund			171,855		182,119

Purchases and proceeds from maturities and sales of affiliates were:

	Purchases			Sales
Ivy Pacific Opportunities Fund		$	750	$	––
Ivy Global Natural Resources Fund			326,216		53,036

For Federal income tax purposes, cost of investments owned at September 30, 2008 and the related unrealized appreciation (depreciation) were as follows:

	Cost		Appreciation		Depreciation		Aggregate Appreciation (Depreciation)
Ivy Dividend      Opportunities Fund	$	230,352,148	$	16,192,902	$	15,571,801	$	621,101
Ivy Small Cap      Value Fund		134,542,000		11,075,262		9,225,168		1,850,094
Ivy Value Fund		53,322,740		7,493,089		6,128,227		1,364,862
Ivy Managed      European/      Pacific Fund		80,098,357		––		28,219,624		(28,219,624	)
Ivy Managed      International      Opportunities      Fund		150,526,615		––		38,349,942		(38,349,942	)
Ivy Cundill Global      Value Fund		502,147,341		48,822,214		106,234,007		(57,411,793	)
Ivy European      Opportunities Fund		463,814,703		7,275,681		119,320,386		(112,044,705	)
Ivy International      Balanced Fund		349,508,882		13,403,657		65,799,805		(52,396,148	)
Ivy International Core      Equity Fund		342,071,343		5,762,012		67,947,575		(62,185,563	)
Ivy International      Growth Fund		206,522,388		15,366,659		35,404,027		(20,037,368	)
Ivy Pacific      Opportunities Fund		515,195,900		16,861,681		151,358,528		(134,496,847	)
Ivy Balanced Fund		96,475,479		11,635,589		1,634,265		10,001,324
Ivy Global Natural      Resources Fund		6,854,520,102		121,434,508		1,400,295,868	(1,278,861,360		)
Ivy Real Estate      Securities Fund		374,487,639		68,571,794		15,954,094		52,617,700
Ivy Bond Fund		156,572,977		360,721		12,305,112		(11,944,391	)
Ivy Global Bond Fund		40,594,013		143,923		1,325,313		(1,181,390	)
Ivy Mortgage      Securities Fund		304,795,917		1,010,031		45,714,545		(44,704,514	)

NOTE 5 - Federal Income Tax Matters

For Federal income tax purposes, the Funds' distributed and undistributed earnings and profit for the fiscal year ended March 31, 2008 and the related net capital losses and post-October activity were as follows:

	Ivy Dividend Opportunities Fund			Ivy Small Cap Value Fund			Ivy Value Fund
Net ordinary income		$	1,114,737		$	––		$	434,945
Distributed ordinary income			1,144,125			4,223,778			1,419,592
Undistributed ordinary income			––			––			26,480	*
Realized long-term capital gains			580,376			2,336,081			3,768,568
Distributed long-term capital gains			2,015,803			4,522,035			4,646,513
Undistributed long-term capital gains			––			1,111			610	*
Post-October losses deferred			2,961,081			11,448,396			1,800,054

	Ivy Managed European/ Pacific Fund			Ivy Managed International Opportunities Fund			Ivy Cundill Global Value Fund
Net ordinary income		$	2,036,791		$	2,574,430		$	18,490,783
Distributed ordinary income			2,036,791			2,468,124			28,868,415
Undistributed ordinary income			––			106,306			858,386
Realized long-term capital gains			2,577,102			2,171,746			22,751,359
Distributed long-term capital gains			101,834			––			41,944,816
Undistributed long-term capital gains			2,475,268			2,171,746			3,183
Post-October losses deferred			––			––			33,237,072

	Ivy European Opportunities Fund		Ivy International Balanced Fund			Ivy International Core Equity Fund
Net ordinary income	$	16,685,716	$	15,221,467		$	12,288,974
Distributed ordinary income		15,290,384		12,128,367			15,229,537
Undistributed ordinary income		2,156,824		5,042,647	*		3,450,991
Realized long-term capital gains		57,537,576		11,890,591			9,027,111
Distributed long-term capital gains		48,944,506		6,489,354			9,412,743
Undistributed long-term capital gains		18,952,359		7,325,446			4,710,841
Post-October losses deferred		540,853		––			––
*This entire amount was distributed prior to September 30, 2008.

	Ivy International Growth Fund			Ivy Pacific Opportunities Fund			Ivy Balanced Fund
Net ordinary income		$	155,242		$	51,357,085		$	1,718,157
Distributed ordinary income			402,130			48,093,720			1,717,894
Undistributed ordinary income			75,196			17,772,429			39,048	*
Realized long-term capital gains			––			45,757,101			1,586,143
Distributed long-term capital gains			––			14,296,128			2,238,984
Undistributed long-term capital gains			––			35,672,676			184	*
Post-October losses deferred			––			895,059			845,565

	Ivy Global Natural Resources Fund		Ivy Real Estate Securities Fund			Ivy Bond Fund
Net ordinary income	$	589,906,320	$	4,215,012		$	3,919,498
Distributed ordinary income		416,921,811		9,990,006			3,908,121
Undistributed ordinary income		248,854,949		1,310,436	*		47,586	*
Realized long-term capital gains		777,184,161		20,858,688			––
Distributed long-term capital gains		315,419,590		33,727,709			––
Undistributed long-term capital gains		540,665,321		1,531	*		––
Post-October losses deferred		23,987,686		4,882,240			––

	Ivy Mortgage Securities Fund
Net ordinary income	$	15,559,407
Distributed ordinary income		15,549,194
Undistributed ordinary income		187,175	*
Realized long-term capital gains		––
Distributed long-term capital gains		––
Undistributed long-term capital gains		––
Post-October losses deferred		1,450,090
*This entire amount was distributed prior to September 30, 2008.

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 eight 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.

	Ivy International Growth Fund		Ivy Pacific Opportunities Fund
March 31, 2009	$	50,885,086		$	157,220
March 31, 2010		146,210,535			157,220
March 31, 2011		47,213,802			––
Total carryover	$	244,309,423		$	314,440

	Ivy Bond Fund		Ivy Mortgage Securities Fund
March 31, 2014	$	—	$	164,447
March 31, 2015		335,409		484,106
March 31, 2016		––		902,106
Total carryover	$	335,409	$	1,550,659

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 March 31, 2009 and 2010 plus any unused limitations from prior year.

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 $10,637,438 for the period ending March 31, 2009 and $3,234,412 for the period ending March 31, 2010 plus any unused limitations from prior year and the amount of certain built-in gains realized, if any.

NOTE 6 - 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 Small Cap Value Fund, Ivy Value Fund, Ivy Managed European/Pacific Fund, Ivy Managed International Opportunities Fund, Ivy European Opportunities Fund, Ivy International Growth Fund, Ivy Pacific Opportunities Fund, Ivy Balanced Fund and Ivy Global Bond Fund offer Class E shares to the public. 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 Pacific Opportunities Fund and Ivy Global Natural Resources Fund also offered Advisor Class shares. Advisor Class 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 Sta tement 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, 2008 are summarized below.

	Ivy Dividend Opportunities Fund				Ivy Small Cap Value Fund
Shares issued from sale of shares:
Class A			3,415				1,992
Class B			149				43
Class C			741				147
Class E			35				––
Class I			4				11
Class Y			1,242				76
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			23				––
Class B			––				––
Class C			––				––
Class E			––	*			––
Class I			––	*			––
Class Y			3				––
Shares redeemed:
Class A			(1,517	)			(1,446	)
Class B			(99	)			(66	)
Class C			(249	)			(167	)
Class E			(13	)			(––	)
Class I			(––	)			(4	)
Class Y			(411	)			(220	)
Increase in outstanding capital shares			3,323				366
*Not shown due to rounding.
Value issued from sale of shares:
Class A		$	54,901			$	26,703
Class B			2,387				543
Class C			11,693				1,882
Class E			567				––
Class I			58				155
Class Y			20,354				1,035
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			360				––
Class B			––				––
Class C			––				––
Class E			1				––
Class I			1				––
Class Y			48				––
Value redeemed:
Class A		(23,855		)		(19,189		)
Class B			(1,519	)			(842	)
Class C			(3,892	)			(2,141	)
Class E		(194		)			(––	)
Class I		(-		)			(49	)
Class Y		(6,497		)			(2,989	)
Increase in outstanding capital		$	54,413			$	5,108

	Ivy Value Fund				Ivy Managed European/ Pacific Fund				Ivy Managed International Opportunities Fund
Shares issued from sale of shares:
Class A			328				2,086				4,321
Class B			22				38				116
Class C			35				52				132
Class E			––				––				––
Class I			––				––				––
Class Y			6				9				5
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			9				––				––
Class B			––				––				––
Class C			––				––				––
Class E			––	*			––				––
Class I			––	*			––				––
Class Y			––	*			––				––
Shares redeemed:
Class A			(557	)			(788	)			(1,159	)
Class B			(60	)			(26	)			(48	)
Class C			(48	)			(61	)			(45	)
Class E			(––	)			(––	)			(––	)
Class I			(––	)			(––	)			(––	)
Class Y			(5	)			(1	)			(––	)
Increase (decrease) in outstanding       capital shares			(270	)			1,309				3,322
Value issued from sale of shares:
Class A		$	5,191			$	19,681			$	42,127
Class B			344				359				1,150
Class C			532				504				1,291
Class E			––				––				––
Class I			––				––				––
Class Y			98				82				45
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			133				––				––
Class B			––				––				––
Class C			––				––				––
Class E			––	*			––				––
Class I			––	*			––				––
Class Y			2				––				––
Value redeemed:
Class A		(8,818		)		(7,008		)		(10,688		)
Class B			(948	)			(228	)		(445		)
Class C			(751	)			(547	)		(412		)
Class E			(––	)			(––	)			(––	)
Class I			(––	)			(––	)			(––	)
Class Y			(71	)			(11	)			(––	)
Increase (decrease) in outstanding capital		$	(4,288	)		$	12,832			$	33,068
*Not shown due to rounding.

	Ivy Cundill Global Value Fund				Ivy European Opportunities Fund				Ivy International Balanced Fund
Shares issued from sale of shares:
Class A			1,849				1,141				2,356
Class B			64				27				232
Class C			163				55				537
Class E			4				––				22
Class I			15				390				855
Class Y			102				11				57
Advisor Class			––				––				NA
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			––				––				317
Class B			––				––				12
Class C			––				––				42
Class E			––				––				1
Class I			––				––				76
Class Y			––				––				2
Advisor Class			––				––				NA
Shares redeemed:
Class A			(6,832	)			(2,383	)			(3,575	)
Class B			(430	)			(399	)			(268	)
Class C			(2,126	)			(374	)			(611	)
Class E			(2	)			(––	)			(2	)
Class I			(19	)			(37	)			(36	)
Class Y			(136	)			(20	)			(112	)
Advisor Class			(9	)			(7	)			NA
Decrease in outstanding capital shares			(7,357	)			(1,596	)			(95	)
Value issued from sale of shares:
Class A		$	23,464			$	37,997			$	37,084
Class B			793				894				3,754
Class C			2,002				1,808				8,583
Class E			56				––				351
Class I			189				13,378				13,647
Class Y			1,304				346				920
Advisor Class			––				––				NA
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			––				––				4,839
Class B			––				––				177
Class C			––				––				635
Class E			––				––				17
Class I			––				––				1,154
Class Y			––				––				27
Advisor Class			––				––				NA
Value redeemed:
Class A		(85,378		)		(78,361		)		(53,292		)
Class B			(5,231	)		(12,652		)			(4,023	)
Class C			(26,012	)			(11,834	)		(9,157		)
Class E			(26	)			(––	)			(31	)
Class I			(240	)			(1,120	)			(512	)
Class Y			(1,747	)			(653	)			(1,755	)
Advisor Class			(114	)			(221	)			NA
Decrease in outstanding capital		$	(90,940	)		$	(50,418	)		$	2,418

	Ivy International Core Equity Fund				Ivy International Growth Fund				Ivy Pacific Opportunities Fund
Shares issued from sale of shares:
Class A			4,310				405				3,379
Class B			192				18				75
Class C			862				46				169
Class E			18				––				––
Class I			412				142				531
Class Y			339				17				90
Advisor Class			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				––
Shares redeemed:
Class A			(1,997	)			(461	)			(4,594	)
Class B			(143	)			(64	)			(194	)
Class C			(454	)			(175	)			(452	)
Class E			(5	)			(––	)			(––	)
Class I			(19	)			(15	)			(73	)
Class Y			(90	)			(8	)			(109	)
Advisor Class			NA				NA				(2	)
Increase (decrease) in outstanding       capital shares			3,425				(95	)			(1,180	)
Value issued from sale of shares:
Class A		$	72,040			$	14,200			$	57,587
Class B			2,995				595				1,177
Class C			13,279				1,466				2,665
Class E			288				––				––
Class I			7,010				5,129				9,262
Class Y			5,603				565				1,574
Advisor Class			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				––
Value redeemed:
Class A		(32,037		)		(15,928		)		(74,560		)
Class B		(2,125		)			(1,961	)			(2,848	)
Class C			(6,739	)		(5,493		)			(6,800	)
Class E			(72	)			(––	)			(––	)
Class I			(281	)			(485	)			(1,133	)
Class Y			(1,440	)			(277	)			(1,855	)
Advisor Class			NA				NA				(21	)
Increase (decrease) in outstanding capital		$	58,521			$	(2,189	)		$	(14,952	)

	Ivy Balanced Fund				Ivy Global Natural Resources Fund				Ivy Real Estate Securities Fund
Shares issued from sale of shares:
Class A			628				19,689				3,026
Class B			48				561				135
Class C			727				5,112				235
Class E			––	*			44				8
Class I			––	*			6,644				20
Class R			NA				474				4
Class Y			539				4,761				588
Advisor Class			NA				––				NA
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			20				––				65
Class B			––	*			––				––	*
Class C			1				––				1
Class E			––	*			––				––	*
Class I			––	*			––				1
Class R			NA				––				––	*
Class Y			10				––				43
Advisor Class			NA				––				NA
Shares redeemed:
Class A			(455	)			(27,216	)			(1,857	)
Class B			(26	)			(1,244	)			(90	)
Class C			(185	)			(8,465	)			(110	)
Class E			(––	)*			(3	)			(2	)
Class I			(––	)*			(671	)			(8	)
Class R			NA				(179	)			(––	)*
Class Y			(130	)			(5,186	)			(539	)
Advisor Class			NA				(1	)			NA
Increase (decrease) in outstanding       capital shares			1,177				(5,680	)			(1,520	)
Value issued from sale of shares:
Class A		$	10,366			$	744,906			$	59,407
Class B			787				20,357				2,615
Class C			11,738				180,584				4,587
Class E			––	*			1,599				163
Class I			––	*			248,250				405
Class R			NA				17,961				70
Class Y			8,819				180,911				11,805
Advisor Class			NA				––				NA
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			334				––				1,278
Class B			3				––				8
Class C			12				––				14
Class E			1				––				1
Class I			1				––				10
Class R			NA				––				1
Class Y			168				––				838
Advisor Class			NA				––				NA
Value redeemed:
Class A		(7,528		)		(953,510		)		(36,156		)
Class B			(428	)			(41,410	)			(1,702	)
Class C			(2,960	)		(271,495		)			(2,144	)
Class E			(––	)*		(90		)		(30		)
Class I			(––	)*		(20,236		)		(148		)
Class R			NA			(6,440		)		(1		)
Class Y			(2,176	)		(176,363		)		(10,317		)
Advisor Class			NA				(29	)			NA
Increase (decrease) in outstanding capital		$	19,137			$	(75,005	)		$	30,704
*Not shown due to rounding.

	Ivy Bond Fund				Ivy Global Bond Fund				Ivy Mortgage Securities Fund
Shares issued from sale of shares:
Class A			2,787				1,804				2,217
Class B			148				533				58
Class C			547				967				232
Class E			36				NA				5
Class I			2				505				2
Class Y			20				723				217
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			162				––				583
Class B			4				––				20
Class C			8				––				31
Class E			2				NA				1
Class I			1				––				1
Class Y			––	*			––				20
Shares redeemed:
Class A			(1,071	)			(398	)			(6,561	)
Class B			(47	)			(1	)			(317	)
Class C			(163	)			(14	)			(500	)
Class E			(4	)			NA				(3	)
Class I			(2	)			(––	)			(1	)
Class Y			(1	)			(103	)			(401	)
Increase (decrease) in outstanding       capital shares			2,429				4,016				(4,396	)
Value issued from sale of shares:
Class A		$	26,606			$	18,009			$	20,829
Class B			1,405				5,324				545
Class C			5,165				9,628				2,163
Class E			341				NA				49
Class I			16				5,050				22
Class Y			193				7,233				2,067
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			1,538				––				5,444
Class B			41				––				189
Class C			74				––				292
Class E			17				NA				7
Class I			4				––				7
Class Y			2				––				188
Value redeemed:
Class A		(10,226		)		(3,925		)		(61,614		)
Class B			(448	)			(10	)			(2,991	)
Class C			(1,553	)			(142	)			(4,696	)
Class E			(35	)		NA				(33		)
Class I			(15	)		(––		)		(6		)
Class Y			(8	)		(1,023		)		(3,788		)
Increase (decrease) in outstanding capital		$	23,117			$	40,144			$	(41,326	)
*Not shown due to rounding.

Transactions in capital stock for the fiscal year ended March 31, 2008 are summarized below.

	Ivy Dividend Opportunities Fund				Ivy Small Cap Value Fund
Shares issued from sale of shares:
Class A			4,850				3,446
Class B			221				107
Class C			678				128
Class E			134				6
Class I			6				48
Class Y			719				131
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			144				474
Class B			7				22
Class C			16				35
Class E			1				––	*
Class I			––	*			2
Class Y			4				65
Shares redeemed:
Class A			(2,574	)			(3,327	)
Class B			(212	)			(234	)
Class C			(419	)			(315	)
Class E			(11	)			(––	)
Class I			(––	)			(15	)
Class Y			(120	)			(451	)
Increase in outstanding capital shares			3,444				122
Value issued from sale of shares:
Class A		$	81,475			$	52,888
Class B			3,680				1,584
Class C			11,355				1,921
Class E			2,304				100
Class I			100				778
Class Y			12,095				1,985
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			2,518				6,794
Class B			128				306
Class C			282				483
Class E			21				6
Class I			2				31
Class Y			60				938
Value redeemed:
Class A		(43,339		)		(50,030		)
Class B			(3,556	)			(3,376	)
Class C			(6,973	)			(4,582	)
Class E		(196		)			(––	)
Class I		(––		)			(232	)
Class Y		(1,982		)			(7,079	)
Increase in outstanding capital		$	57,974			$	2,515
*Not shown due to rounding.

	Ivy Value Fund				Ivy Managed European/ Pacific Fund				Ivy Managed International Opportunities Fund
Shares issued from sale of shares:
Class A			1,215				5,764				10,440
Class B			92				159				398
Class C			93				254				406
Class E			5				20				20
Class I			5				20				20
Class Y			11				28				43
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			290				178				215
Class B			21				5				6
Class C			18				8				7
Class E			––	*			1				1
Class I			––	*			1				1
Class Y			1				1				1
Shares redeemed:
Class A			(1,727	)			(478	)			(703	)
Class B			(162	)			(24	)			(42	)
Class C			(154	)			(12	)			(46	)
Class E			(––	)			(––	)			(––	)
Class I			(––	)			(––	)			(––	)
Class Y			(2	)			(––	)			(––	)*
Increase (decrease) in       outstanding capital shares			(294	)			5,925				10,767
Value issued from sale of shares:
Class A		$	23,306			$	63,478			$	111,227
Class B			1,750				1,743				4,237
Class C			1,774				2,828				4,287
Class E			100				200				200
Class I			100				200				200
Class Y			185				283				456
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			5,180				1,938				2,280
Class B			360				50				65
Class C			310				89				73
Class E			7				10				7
Class I			8				11				7
Class Y			22				13				13
Value redeemed:
Class A		(31,497		)		(5,029		)		(7,406		)
Class B			(2,919	)			(264	)		(456		)
Class C			(2,797	)			(125	)		(483		)
Class E			(––	)			(––	)			(––	)
Class I			(––	)			(––	)			(––	)
Class Y			(28	)			(––	)			(4	)
Increase (decrease) in outstanding capital		$	(4,139	)		$	65,425			$	114,703
*Not shown due to rounding.

	Ivy Cundill Global Value Fund				Ivy European Opportunities Fund				Ivy International Balanced Fund
Shares issued from sale of shares:
Class A			7,452				3,662				5,434
Class B			275				246				250
Class C			1,219				373				1,450
Class E			31				3				46
Class I			173				1,434				2,667
Class Y			211				49				200
Advisor Class			––				3				NA
Class II			––				NA				NA
Shares issued from reinvestment of       dividends and/or capital gains distribution:
Class A			3,403				1,143				769
Class B			258				113				30
Class C			813				142				102
Class E			2				––	*			1
Class I			13				118				97
Class Y			59				15				3
Advisor Class			19				3				NA
Class II			––				NA				NA
Shares redeemed:
Class A			(18,983	)			(3,156	)			(4,313	)
Class B			(1,309	)			(571	)			(193	)
Class C			(8,863	)			(471	)			(747	)
Class E			(2	)			(––	)			(1	)
Class I			(55	)			(29	)			(12	)
Class Y			(583	)			(115	)			(92	)
Advisor Class			(34	)			(9	)			NA
Class II			(2	)			NA				NA
Increase (decrease) in       outstanding capital shares			(15,903	)			2,953				5,691
Value issued from sale of shares:
Class A		$	116,197			$	150,552			$	93,333
Class B			4,131				9,926				4,244
Class C			18,952				14,778				25,015
Class E			487				100				783
Class I			2,793				58,674				45,814
Class Y			3,209				2,024				3,389
Advisor Class			––				97				NA
Class II			––				NA				NA
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			48,928				44,135				13,166
Class B			3,631				4,191				519
Class C			11,392				5,317				1,744
Class E			34				11				25
Class I			188				4,571				1,654
Class Y			852				580				46
Advisor Class			277				101				NA
Class II			––				NA				NA
Value redeemed:
Class A		(286,653		)		(125,648		)		(73,971		)
Class B			(19,233	)		(21,682		)			(3,296	)
Class C			(130,403	)			(17,803	)		(12,642		)
Class E			(23	)			(––	)			(13	)
Class I			(843	)			(1,199	)			(203	)
Class Y			(8,874	)			(4,619	)			(1,571	)
Advisor Class			(516	)			(352	)			NA
Class II			(25	)			NA				NA
Increase (decrease) in outstanding capital		$	(235,499	)		$	123,754			$	98,036
*Not shown due to rounding.

	Ivy International Core Equity Fund				Ivy International Growth Fund				Ivy Pacific Opportunities Fund
Shares issued from sale of shares:
Class A			5,995				789				9,852
Class B			311				42				387
Class C			1,251				133				761
Class E			65				3				6
Class I			1,270				593				2,094
Class Y			459				16				260
Advisor Class			––				––				––
Class II			NA				––				NA
Shares issued from reinvestment       of dividends and/or capital       gains distribution:
Class A			844				7				2,325
Class B			47				––				117
Class C			162				––				191
Class E			4				––	*			1
Class I			77				2				149
Class Y			25				––	*			39
Advisor Class			––				––				1
Class II			NA				––	*			NA
Shares redeemed:
Class A			(2,976	)			(1,081	)			(7,611	)
Class B			(413	)			(96	)			(477	)
Class C			(606	)			(299	)			(786	)
Class E			(3	)			(––	)			(––	)
Class I			(18	)			(24	)			(93	)
Class Y			(106	)			(68	)			(372	)
Advisor Class			(––	)*			(––	)*			(––	)
Class II			NA				(9	)			NA
Increase in outstanding capital shares			6,388				8				6,844
Value issued from sale of shares:
Class A		$	111,517			$	29,963			$	201,372
Class B			5,340				1,415				7,206
Class C			21,399				4,596				15,041
Class E			1,197				100				100
Class I			23,654				22,300				42,320
Class Y			8,284				600				5,567
Advisor Class			––				––				––
Class II			NA				––				NA
Value issued from reinvestment       of dividends and/or capital       gains distribution:
Class A			15,658				265				49,834
Class B			804				––				2,296
Class C			2,762				––				3,788
Class E			72				––	*			13
Class I			1,430				59				3,223
Class Y			458				5				834
Advisor Class			––				––				12
Class II			NA				1				NA
Value redeemed:
Class A		(54,756		)		(40,504		)		(151,434		)
Class B		(7,063		)			(3,310	)			(8,705	)
Class C			(10,068	)		(10,278		)			(14,352	)
Class E			(60	)			(––	)			(––	)
Class I			(340	)			(901	)			(1,857	)
Class Y			(1,893	)			(2,424	)			(6,956	)
Advisor Class			(1	)			(1	)			(––	)
Class II			NA				(327	)			NA
Increase in outstanding capital		$	118,394			$	1,559			$	148,302
*Not shown due to rounding.

	Ivy Balanced Fund				Ivy Global Natural Resources Fund				Ivy Real Estate Securities Fund
Shares issued from sale of shares:
Class A			736				55,612				3,497
Class B			52				1,955				102
Class C			144				16,928				141
Class E			6				79				22
Class I			6				1,881				94
Class R			NA				636				3
Class Y			178				14,190				214
Advisor Class			NA				––	*			NA
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			142				10,279				1,329
Class B			5				688				62
Class C			5				3,486				66
Class E			––	*			5				2
Class I			––	*			114				7
Class R			NA				32				1
Class Y			65				1,708				675
Advisor Class			NA				1				NA
Shares redeemed:
Class A			(766	)			(30,526	)			(6,872	)
Class B			(33	)			(1,695	)			(344	)
Class C			(94	)			(7,152	)			(516	)
Class E			(––	)			(2	)			(2	)
Class I			(––	)			(49	)			(39	)
Class R			NA				(113	)			(1	)
Class Y			(404	)			(3,472	)			(4,826	)
Advisor Class			NA				(1	)			NA
Increase (decrease) in outstanding       capital shares			42				64,584				(6,385	)
Value issued from sale of shares:
Class A		$	12,611			$	2,067,009			$	79,829
Class B			877				68,577				2,333
Class C			2,471				581,343				3,288
Class E			100				2,930				532
Class I			100				68,389				2,408
Class R			NA				23,676				74
Class Y			3,067				528,496				4,733
Advisor Class			NA				3				NA
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			2,489				391,527				26,473
Class B			88				24,609				1,224
Class C			94				121,921				1,305
Class E			4				186				35
Class I			5				4,374				135
Class R			NA				1,236				15
Class Y			1,146				65,199				13,488
Advisor Class			NA				37				NA
Value redeemed:
Class A		(13,091		)		(1,124,546		)		(152,493		)
Class B			(573	)			(58,685	)			(7,458	)
Class C			(1,605	)			(241,166	)			(11,542	)
Class E			(––	)		(71		)		(33		)
Class I			(––	)		(1,821		)		(872		)
Class R			NA			(4,175		)		(22		)
Class Y			(6,956	)		(128,331		)		(112,045		)
Advisor Class			NA				(38	)			NA
Increase (decrease) in       outstanding capital		$	827			$	2,390,679			$	(148,593	)
*Not shown due to rounding.

	Ivy Bond Fund				Ivy Mortgage Securities Fund
Shares issued from sale of shares:
Class A			4,751				9,682
Class B			143				434
Class C			527				680
Class E			83				32
Class I			19				34
Class Y			2				493
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			217				1,210
Class B			7				42
Class C			14				66
Class E			2				1
Class I			1				1
Class Y			––	*			44
Shares redeemed:
Class A			(1,485	)			(10,536	)
Class B			(73	)			(400	)
Class C			(398	)			(835	)
Class E			(3	)			(2	)
Class I			(1	)			(9	)
Class Y			(4	)			(845	)
Increase in outstanding capital shares			3,802				92
Value issued from sale of shares:
Class A		$	48,475			$	100,326
Class B			1,467				4,501
Class C			5,385				7,030
Class E			851				334
Class I			196				360
Class Y			25				5,119
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			2,204				12,454
Class B			69				431
Class C			139				684
Class E			18				9
Class I			8				13
Class Y			––	*			459
Value redeemed:
Class A		(15,108		)		(108,564		)
Class B		(747		)			(4,126	)
Class C		(4,059		)			(8,610	)
Class E		(26		)			(23	)
Class I		(14		)			(96	)
Class Y		(42		)			(8,695	)
Increase in outstanding capital		$	38,841			$	1,606
*Not shown due to rounding.

NOTE 7 - 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 sec urities purchased by the Fund is reduced by the amount of the premium received. Investments in options, whether purchased or written, involve certain risks. Writing put options and purchasing call options may increase the Fund's exposure to the underlying security (or basket of securities). Purchasing put options and writing call options may decrease the Fund's exposure to the underlying security (or basket of securities). With written options, there may be times when the Fund will be required to purchase or sell securities to meet its obligation under the option contract where the required action is not beneficial to the Fund, due to unfavorable movement of the market price of the underlying security (or basket of securities). Additionally, to the extent the Fund enters into over-the-counter (OTC) option transactions with counterparties, the Fund will be exposed to the risk that counterparties to these OTC transactions, for whatever reason, will be unable to meet their obligations under the terms of the tra nsaction.

For Ivy Value Fund, transactions in written call options were as follows:

	Number of Contracts			Premiums Received
Outstanding at March 31, 2008		––	*		$	3
Options written		2				283
Options terminated in closing purchase transactions		(1	)		(180		)
Options exercised		(––	)			(––	)
Options expired		(1	)		(43		)
Outstanding at September 30, 2008		––	*		$	63

For Ivy Value Fund, transactions in written put options were as follows:

	Number of Contracts			Premiums Received
Outstanding at March 31, 2008		––	*		$	20
Options written		2				155
Options terminated in closing purchase transactions		(––	)*		(14		)
Options exercised		(––	)*			(11	)
Options expired		(1	)		(55		)
Outstanding at September 30, 2008		1			$	95
*Not shown due to rounding.

For Ivy Pacific Opportunities Fund, transactions in written call options were as follows:

	Number of Contracts				Premiums Received
Outstanding at March 31, 2008			––			$	––
Options written		93					2,280
Options terminated in closing purchase transactions		(93		)			(2,280	)
Options exercised			(––	)			(––	)
Options expired			(––	)			(––	)
Outstanding at September 30, 2008			––			$	––

For Ivy Pacific Opportunities Fund, transactions in written put options were as follows:

	Number of Contracts				Premiums Received
Outstanding at March 31, 2008			––			$	––
Options written		93					3,989
Options terminated in closing purchase transactions			(93	)			(3,989	)
Options exercised			(––	)			(––	)
Options expired			(––	)		(—		)
Outstanding at September 30, 2008			––			$	––

For Ivy Global Natural Resources Fund, transactions in written put options were as follows:

	Number of Contracts				Premiums Received
Outstanding at March 31, 2008			––			$	––
Options written		30					8,039
Options terminated in closing purchase transactions			(––	)			(––	)
Options exercised			(––	)			(––	)
Options expired			(20	)		(6,207		)
Outstanding at September 30, 2008			10			$	1,832

NOTE 8 - Futures

No price is paid upon entering into a futures contract. Instead, upon entering into a futures contract, a Fund is required to deposit, in a segregated account, an amount of cash of liquid securities 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 Fund 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 Fund 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. A Fund uses futures to attempt to reduce the overall risk of its investments or to enhance returns. The risks of futures contracts include the possibility there may be an illiquid secondary market, that a change in the value of the contract may not correlate with the changes in the value of the underlying securities or ind ex, and/or the possible inability of the counterparty to fulfill its obligations under the agreement.

NOTE 9 - Commitment

In connection with Ivy Pacific Opportunities Fund's investment in Vietnam Azalea Fund Limited (VAF), the Fund is contractually committed to provide additional capital of up to $2,100 if and when VAF requests such contributions or draw downs. The total commitment is limited to $5,000. At September 30, 2008, Ivy Pacific Opportunities Fund had made a total contribution of $2,900. No public market currently exists for the shares of VAF nor are the shares listed on any securities exchange. VAF intends to become listed within one year after the final commitment has been drawn down.

NOTE 10 - 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-month period ended September 30, 2008 follows:

	4-1-08 Share Balance	Purchase Cost	Sales Cost	Realized Gain/ (Loss)	Distributions Received(1)	9-30-08 Share Balance	9-30-08 Market Value
Ivy Managed European/Pacific Fund
Ivy European      Opportunities      Fund, Class I	998	$8,021	$721	$(266)	$—	1,215	$31,376
Ivy Pacific      Opportunities      Fund, Class I	1,313	5,348	557	(253)	––	1,595	20,355
Ivy Managed International Opportunities Fund
Ivy European      Opportunities      Fund, Class I	446	5,067	266	(100)	––	588	15,193
Ivy International      Balanced Fund,      Class I	2,698	14,646	573	(132)	1,134	3,587	48,324
Ivy International      Core Equity Fund,      Class I	1,271	6,756	323	(102)	––	1,652	22,134
Ivy International      Growth Fund,      Class I	444	5,067	233	(67)	––	579	16,378
Ivy Pacific      Opportunities      Fund, Class I	591	3,378	209	(99)	––	777	9,909
(1)Distributions received includes distributions from net investment income and/or from capital gains from the underlying funds.

A summary of the transactions for the affiliated company transactions during the six-month period ended September 30, 2008 follows:

	4-1-08 Share Balance	Purchase Cost	Sales Cost	Realized Gain/ (Loss)	Distributions Received(1)	9-30-08 Share Balance	9-30-08 Market Value
Ivy Pacific Opportunities Fund
Vietnam Azalea      Fund Limited(1)	500	$750	$—	$—	$—	500	$2,305
Ivy Global Natural Resources Fund
Atacama Minerals      Corp.(1)	––	5,541	––	––	––	5,880	2,818
Domtar Corporation(1)	25,000	46,470	92,170	(26,200)	––	22,040	101,383
Massey Energy      Company	––	202,976	––	––	––	5,000	178,350
Verso Paper      Holdings LLC	––	40,993	960	40,033	120	3,920	10,349
Yingli Green Energy      Holding Company      Limited, ADR(1)	7,500	29,486	5,431	24,055	––	8,800	96,976
(1)No dividends were paid during the preceding 12 months.

NOTE 11 - Name Changes

On June 2, 2008, Ivy Dividend Income Fund changed its name to Ivy Dividend Opportunities Fund and changed its investment objective to the provision of total return. In addition, Ivy Global Strategic Income Fund changed its name to Ivy Global Bond Fund on the same date.

NOTE 12 - Senior Loans

Ivy Global Bond Fund invests in senior secured corporate loans either as an original lender or as a purchaser of a loan assignment or a participation interest in a loan. Senior Loans are generally made to U.S. and foreign borrowers that are corporations, partnerships, or other business entities. Senior Loans are generally readily marketable, but some loans may be illiquid or be subject to some restrictions on resale. These loans are valued using a composite price from more than one broker or dealer as obtained from a pricing service. As of September 30, 2008, Ivy Global Bond Fund owned Senior Loans with an aggregate market value of $245 representing 0.63% of the Fund's net assets.

Renewal of Investment Management Agreements for the Ivy Funds

At a meeting of the Board of Trustees the Trust held on August 26 and 27, 2008, the Trustees, including all of the Trustees who are not "interested persons" as defined in Section 2(a)(19) of the Investment Company Act of 1940 (the "Independent Trustees"), unanimously approved the continuance of the existing management agreements between IICO and the Trust. The existing management agreements considered were (i) the Master Business Management and Investment Advisory Agreement and all current supplements thereto 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 Opportunities Fund, Ivy Global Bond Fund, Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund); (iii) the Investment Management Agreemen t between the Trust and IICO (with respect to the Ivy Balanced Fund, Ivy Bond Fund, Ivy Global Natural Resources Fund, Ivy International Balanced Fund, Ivy Mortgage Securities Fund, Ivy Real Estate Securities Fund, Ivy Small Cap Value Fund and the Ivy Value 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)
• Mackenzie Financial Corporation (Ivy Cundill Global Value Fund and Ivy Global Natural Resources Fund).

(each such subadviser referred to herein as a "Subadviser").

The 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, as well as an expla nation of the methodology by which the profitability analysis was calculated. 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 previously had reviewed these materials during a telephonic meeting earlier in August. They further reviewed these materials extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members at the August 26th and 27th Board meeting, 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 nature, extent and quality of services provided to all the Funds by IICO and each Subadviser, taking into account the vast amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence request list submitted on their behalf by counsel and which they had discussed during a teleconference earlier in the month. They also considered the knowledge they had received from the regular meetings of the Board, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the 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 each Fund's investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of o ther service providers, including monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations). The Board also noted the accolades that the Funds had received during the year from the financial media, including Barrons. 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. The Board also noted that as the assets of the Funds continue to increase, the Funds' expense ratios generally continue to fall. The Board concluded that the Funds' asset size and fee structures did not warrant the restructuring or reevaluation of the fee breakpoints for the Funds at the current 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 Bond Fund, Ivy Cundill Global Value Fund, Ivy European Opportunities Fund and the Ivy Real Estate Securities Fund. In addition, the Board considered that IICO had recently commenced direct portfolio management responsibilities for the Ivy Small Cap Value Fund, replacing the Fund's Subadviser.

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 (and with respect to Class E and Class Y shares of certain Funds, the expense limitation agreements proposed to be entered into) by IICO in light of the services provided by IICO and each Subadviser. 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 asset s 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 each Fund's expenses are appropriate at the current time.

Independent Fee Consultant Review

The Disinterested 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 2008, and as part of their regularly scheduled meetings, the Disinterested Trustees of Ivy Funds and the Disinterested 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 Disinterested 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 Wad dell, 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 Disinterested Trustees/Directors.

Summary Findings

The report stated that IICO delivered strong levels of performance and service to the Ivy Funds in relation to its management fees and relative to investment advisers of comparable mutual funds. For the 36 months ended March 31, 2008, when compared to their respective peer groups established by Lipper, Inc. ("Lipper"), approximately 36% of the Ivy Funds were in the top quartile of performance and 60% of the Ivy Funds were in the top two quartiles. The independent fee consultant noted that the Ivy Funds' performance appeared 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.

The report stated that for the 12 months ended March 31, 2008, the total expenses of the Ivy Funds on average were 1% above the mean total expenses of their respective Lipper Expense Group peers and 9% below the mean total expenses for their Lipper Expense Universes. The management fees for the Ivy Funds on average were 0.1% above the mean management fees for their Lipper Expense Groups and 2% above the means for their Lipper Expense Universes. The independent fee consultant noted that the Ivy Funds' small average account size and small fund AUM introduces certain biases in the Lipper analyses that work against Ivy Funds in Lipper expense comparisons and, as a result, the Lipper findings may be considered conservative in that regard. The independent fee consultant found that 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 report stated 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. The report noted that these institutional accounts have different service and infrastructure needs and in addition that, 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. The report noted that 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.

The report stated that an economy of pricing analysis was undertaken by the independent fee consultant that showed 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, 2008 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

Domestic Equity Funds      

Capital Appreciation Fund
Core Equity Fund
Dividend Opportunities Fund
Large Cap Growth Fund
Mid Cap Growth Fund
Small Cap Growth Fund
Small Cap Value Fund
Value Fund

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

Specialty Funds      

Asset Strategy Fund
Balanced Fund
Energy Fund
Global Natural Resources Fund
Real Estate Securities Fund
Science and Technology Fund

Fixed Income Funds      

Bond Fund
Global Bond Fund
High Income Fund
Limited-Term Bond Fund
Mortgage Securities Fund
Money Market Fund
Municipal Bond 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 (9-08)

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/Mara D. Herrington
	Mara D. Herrington, Vice President and Secretary
Date: December 5, 2008

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 5, 2008
By	/s/Joseph W. Kauten
	Joseph W. Kauten, Vice President and Principal Financial Officer
Date: December 5, 2008

EX-99.CERT

EXHIBIT 99.CERT
CERTIFICATION
I, Henry J. Herrmann, certify that:
1.	I have reviewed this report on Form N-CSR of Ivy Funds;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that the material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 5, 2008	/s/Henry J. Herrmann
	Henry J. Herrmann, Principal Executive Officer

CERTIFICATION
I, Joseph W. Kauten, certify that:
1.	I have reviewed this report on Form N-CSR of Ivy Funds;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that the material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 5, 2008	/s/Joseph W. Kauten
	Joseph W. Kauten, Principal Financial Officer

EX-99.906CERT

EXHIBIT 99.906 CERT

CERTIFICATION UNDER SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

Henry J. Herrmann, Principal Executive Officer, and Joseph W. Kauten, Principal Financial Officer of Ivy Funds (the "Registrant"), each certify to the best of his knowledge that:

1.	The Registrant's periodic report on Form N-CSR for the period covered by the report (the "Form N-CSR") fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended; and
2.	The information contained in the Form N-CSR fairly represents, in all material respects, the financial condition and results of operation of the Registrant.

This certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document. A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to the Registrant and will be retained and furnished to the U.S. Securities and Exchange Commission or its staff upon request.

By	/s/Henry J. Herrmann
	Henry J. Herrmann, Principal Executive Officer
Date: December 5, 2008
By	/s/Joseph W. Kauten
	Joseph W. Kauten, Principal Financial Officer
Date: December 5, 2008