UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-1028

Ivy Funds

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)

Registrant's telephone number, including area code: 913-236-2000

Date of fiscal year end: March 31

Date of reporting period: December 31, 2008

ITEM 1. SCHEDULE OF INVESTMENTS.

The Investments of Ivy Balanced Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares		Value
Aerospace & Defense - 2.01%
General Dynamics Corporation		89	$	5,137

Air Freight & Logistics - 0.72%
Expeditors International of Washington, Inc.		56		1,850

Asset Management & Custody Banks - 1.59%
Northern Trust Corporation		78		4,083

Biotechnology - 3.74%
Genentech, Inc. (A)		48		3,938
Gilead Sciences, Inc. (A)		110		5,636
				9,574
Communications Equipment - 4.38%
Cisco Systems, Inc. (A)		256		4,171
Nokia Corporation, Series A, ADR		224		3,490
QUALCOMM Incorporated		99		3,551
				11,212
Computer Hardware - 2.69%
Apple Inc. (A)		27		2,322
Hewlett-Packard Company		126		4,583
				6,905
Construction & Engineering - 1.28%
Fluor Corporation		73		3,284

Department Stores - 0.74%
Kohl's Corporation (A)		52		1,897

Distillers & Vintners - 1.08%
Brown-Forman Corporation, Class B		54		2,778

Diversified Banks - 1.37%
Wells Fargo & Company		119		3,496

Diversified Chemicals - 0.96%
E.I. du Pont de Nemours and Company		98		2,469

Electric Utilities - 1.49%
Exelon Corporation		69		3,809

Electrical Components & Equipment - 1.36%
Emerson Electric Co.		95		3,467

Footwear - 0.92%
NIKE, Inc., Class B		46		2,361

Health Care Equipment - 0.60%
Zimmer Holdings, Inc. (A)		38		1,540

Health Care Supplies - 1.34%
DENTSPLY International Inc.		121		3,423

Household Products - 2.81%
Colgate-Palmolive Company		105		7,197

Hypermarkets & Super Centers - 2.05%
Wal-Mart Stores, Inc.		94		5,253

Industrial Gases - 1.02%
Air Products and Chemicals, Inc.		52		2,599

Integrated Oil & Gas - 5.72%
BP p.l.c., ADR		80		3,753
Chevron Corporation		53		3,950
Exxon Mobil Corporation		87		6,937
				14,640
Integrated Telecommunication Services - 2.01%
AT&T Inc.		180		5,142

Investment Banking & Brokerage - 0.50%
Goldman Sachs Group, Inc. (The)		15		1,274

Oil & Gas Equipment & Services - 0.73%
Schlumberger Limited		45		1,884

Oil & Gas Exploration & Production - 0.49%
XTO Energy Inc.		36		1,259

Oil & Gas Storage & Transportation - 0.78%
Kinder Morgan Energy Partners, L.P.		44		1,990

Other Diversified Financial Services - 1.48%
J.P. Morgan Chase & Co.		121		3,799

Pharmaceuticals - 5.30%
Abbott Laboratories		114		6,095
Allergan, Inc.		51		2,048
Johnson & Johnson		91		5,432
				13,575
Property & Casualty Insurance - 4.38%
Allstate Corporation (The)		95		3,122
Berkshire Hathaway Inc., Class B (A)		1		3,275
Travelers Companies, Inc. (The)		107		4,828
				11,225
Semiconductors - 1.25%
Microchip Technology Incorporated		164		3,193

Soft Drinks - 3.15%
Coca-Cola Company (The)		65		2,933
PepsiCo, Inc.		94		5,132
				8,065
Systems Software - 1.05%
Microsoft Corporation		138		2,686

Tobacco - 1.05%
Philip Morris International Inc.		62		2,676

TOTAL COMMON STOCKS - 60.04%			$	153,742
(Cost: $150,950)

CORPORATE DEBT SECURITIES	Principal
Agricultural Products - 0.29%
Archer-Daniels-Midland Company,
7.000%, 2-1-31	$	700		742

Beverage / Bottling - 0.38%
Diageo Capital plc,
4.375%, 5-3-10		1,000		991

Communications Equipment - 0.40%
Cisco Systems, Inc.,
5.250%, 2-22-11		1,000		1,038

Department Stores - 0.38%
Kohl's Corporation,
6.300%, 3-1-11		1,000		969

Diversified Banks - 0.10%
Wells Fargo Bank, N.A.,
7.550%, 6-21-10		250		260

Electric - 0.23%
Hydro-Quebec,
8.000%, 2-1-13		500		589

Electric Utilities - 0.38%
Exelon Corporation,
6.950%, 6-15-11		1,000		970

Food Processors - 0.29%
Cargill, Inc.,
6.375%, 6-1-12 (B)		400		389
Unilever Capital Corporation,
5.900%, 11-15-32		350		350
				739
Food Retail - 0.40%
Kroger Co. (The),
6.200%, 6-15-12		1,000		1,018

Home Improvement Retail - 0.38%
Home Depot, Inc. (The),
5.200%, 3-1-11		1,000		972

Life Insurance - 0.16%
StanCorp Financial Group, Inc.,
6.875%, 10-1-12		450		407

Oil & Gas Exploration & Production - 0.19%
XTO Energy Inc.,
7.500%, 4-15-12		500		494

Other Non-Agency REMIC/CMO - 0.00%
Banco Hipotecario Nacional:
7.916%, 7-25-09 (C)		7		---	*
8.000%, 3-31-11 (C)		69		1
				1
Pharmaceuticals - 0.40%
Abbott Laboratories,
3.750%, 3-15-11		1,000		1,013

TOTAL CORPORATE DEBT SECURITIES - 3.98%			$	10,203
(Cost: $10,185)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.000%, 9-1-17		283		294
5.000%, 1-1-18		321		333
5.500%, 4-1-18		171		177
6.500%, 10-1-28		115		121
6.500%, 2-1-29		23		24
7.000%, 5-1-31		22		24
7.500%, 5-1-31		38		40
7.000%, 7-1-31		35		37
7.000%, 9-1-31		50		53
7.000%, 9-1-31		35		37
7.000%, 11-1-31		114		122
6.500%, 2-1-32		136		143
7.000%, 2-1-32		132		140
7.000%, 2-1-32		77		82
6.500%, 3-1-32		35		36
7.000%, 3-1-32		79		83
7.000%, 6-1-32		26		28
7.000%, 7-1-32		136		144
6.500%, 8-1-32		58		61
6.000%, 9-1-32		517		535
6.500%, 9-1-32		123		129
5.500%, 5-1-33		244		250
5.500%, 5-1-33		148		152
5.500%, 5-1-33		110		113
5.500%, 6-1-33		236		243


TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 1.33%			$	3,401
(Cost: $3,346)

UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations
United States Treasury Bonds,
7.500%, 11-15-16		500		683
United States Treasury Notes:
4.000%, 3-15-10		800		836
4.250%, 10-15-10		2,000		2,136
3.875%, 2-15-13		1,250		1,392
3.625%, 5-15-13		750		824
4.250%, 8-15-13		900		1,023
4.250%, 8-15-15		3,000		3,484


TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 4.05%			$	10,378
(Cost: $9,222)

SHORT-TERM SECURITIES
Commercial Paper
AT&T Inc.,
0.180%, 2-12-09		5,000		4,999
Avon Capital Corp. (Avon Products, Inc.),
0.450%, 1-20-09		5,000		4,999
Campbell Soup Co.,
0.050%, 1-28-09		2,000		2,000
Caterpillar Inc.,
0.160%, 1-26-09		7,000		6,999
Clorox Co.:
3.250%, 1-5-09		3,708		3,707
1.750%, 1-6-09		5,800		5,799
Hershey Company (The),
0.200%, 1-8-09		5,000		5,000
Illinois Tool Works Inc.,
0.300%, 1-20-09		4,100		4,099
ITT Corporation:
2.000%, 1-5-09		3,155		3,154
1.250%, 2-4-09		2,000		1,998
Kraft Foods Inc.,
1.750%, 1-30-09		6,135		6,126
McCormick & Co. Inc.:
0.150%, 1-2-09		1,500		1,500
1.450%, 2-27-09		5,000		4,988
Praxair Inc.:
0.400%, 2-11-09		5,000		4,998
0.120%, 2-17-09		3,000		2,999
Sara Lee Corporation,
1.250%, 1-7-09		7,000		6,999
Toyota Motor Credit Corporation,
0.550%, 1-28-09		8,000		7,997

TOTAL SHORT-TERM SECURITIES - 30.60%			$	78,361
(Cost: $78,361)

TOTAL INVESTMENT SECURITIES - 100.00%			$	256,085
(Cost: $252,064)

Notes to Schedule of Investments

The Fund has adopted 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 the 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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$153,742	$ ---
Level 2 - Other Significant Observable Inputs	102,342	- ---
Level 3 - Significant Unobservable Inputs	1	- ---
Total	$256,085	$ ---

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

	Investments	Other Financial Instruments+
Beginning balance 3-31-08	$ ---	$ ---
Net realized gain (loss)	- ---	- ---
Net change in unrealized appreciation (depreciation)	- ---	- ---
Net purchases (sales)	- ---	- ---
Transfers in and/or out of Level 3	1	- ---
Ending Balance 12-31-08	$ 1	$ ---
Net change in unrealized depreciation from investments still held as of 12-31-08	$(26)	$ ---

+Other financial instruments are derivative instruments not reflected in the schedule of investments, such as written options, futures, forward currency contracts and swap contracts, which are valued at the unrealized appreciation or depreciation on the instrument.

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

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

(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 December 31, 2008, the total value of these securities amounted to $389 or 0.15% of total investment securities.

(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 December 31, 2008, the total value of these securities amounted to $1 or 0.00% of total investment securities.

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

Securities with an aggregate market value of $1, representing 0.00% of total investment securities, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees.

The Investments of Ivy Bond Fund
December 31, 2008
(In Thousands)

PREFERRED STOCKS	Shares		Value
Diversified REIT's - 0.12%
PS Business Parks, Inc., 7.0% Cumulative		11	$	176

Specialized REIT's - 0.03%
Public Storage, Inc., 6.25% Cumulative		3		47

TOTAL PREFERRED STOCKS - 0.15%			$	223
(Cost: $327)

CORPORATE DEBT SECURITIES	Principal
Asset Management & Custody Banks - 0.30%
Janus Capital Group Inc.:
6.250%, 6-15-12	$	315		252
6.700%, 6-15-17		245		183
				435
Banking - 5.84%
Bank of America, N.A. (Federal Deposit Insurance Corporation),
1.700%, 12-23-10 (A)		945		948
Citigroup Inc.,
8.400%, 4-29-49		900		594
HSBC USA Inc. (Federal Deposit Insurance Corporation),
3.125%, 12-16-11 (A)		2,115		2,196
JPMorgan Chase & Co. (Federal Deposit Insurance Corporation),
2.625%, 12-1-10 (A)		1,895		1,933
KeyCorp,
6.500%, 5-14-13		185		171
National City Corporation, Convertible,
4.000%, 2-1-11		930		856
PNC Funding Corp (Federal Deposit Insurance Corporation),
2.300%, 6-22-12 (A)		625		631
Schwab Capital Trust I,
7.500%, 11-15-37		720		360
Sovereign Bank (Federal Deposit Insurance Corporation),
0.750%, 1-17-12 (A)		705		723
				8,412
Beverage / Bottling - 0.48%
Bottling Group, LLC,
6.950%, 3-15-14		630		684

Biotechnology - 0.09%
Amgen Inc.,
6.900%, 6-1-38		115		131

Cable & Satellite - 0.30%
Cox Communications, Inc.,
7.125%, 10-1-12		450		431

Car Loan - 0.28%
Capital Auto Receivables Asset Trust 2006-1,
7.160%, 1-15-13 (C)		245		213
Capital Auto Receivables Asset Trust 2007-2,
8.300%, 2-18-14 (D)		275		187
				400
Construction & Engineering - 0.17%
USG Corporation,
6.300%, 11-15-16		400		245

Consumer Finance - 1.57%
American Express Bank, FSB (Federal Deposit Insurance Corporation),
3.150%, 12-9-11 (A)		2,250		2,268

Electric - 0.55%
FirstEnergy Generation Corp.,
6.850%, 6-1-34		295		301
Pennsylvania Electric Company,
5.125%, 4-1-14		250		227
TransAlta Corporation,
6.650%, 5-15-18		300		267
				795
Finance - Other - 1.83%
Allied Capital Corporation,
6.625%, 7-15-11		685		528
American Capital Strategies, Ltd.,
6.850%, 8-1-12		635		266
Capmark Financial Group Inc.:
5.875%, 5-10-12		340		116
6.300%, 5-10-17		200		55
John Deere Capital Corporation (Federal Deposit Insurance Corporation),
2.875%, 6-19-12 (A)		705		725
Lazard Group LLC,
6.850%, 6-15-17		800		509
Symetra Financial Corporation,
8.300%, 10-15-37 (C)		885		443
				2,642
Gas - Pipelines - 0.76%
El Paso Corporation,
7.250%, 6-1-18		735		584
Magellan Midstream Partners, L.P.,
6.400%, 7-15-18		200		169
Williams Partners L.P. and Williams Partners Finance Corporation,
7.250%, 2-1-17		420		332
				1,085
Health Care Supply - 0.28%
Humana Inc.,
8.150%, 6-15-38		520		402

Independent Finance - 0.27%
HSBC Finance Corporation,
5.700%, 6-1-11		400		390

Information / Data Technology - 0.38%
Fiserv, Inc.,
6.125%, 11-20-12		340		320
Intuit Inc.,
5.750%, 3-15-17		310		229
				549
Investment Banking & Brokerage - 1.64%
Goldman Sachs Group, Inc. (The),
6.750%, 10-1-37		745		605
Morgan Stanley,
5.300%, 3-1-13		635		576
Morgan Stanley (Federal Deposit Insurance Corporation),
2.900%, 12-1-10 (A)		1,150		1,180
				2,361
Leasing - 0.20%
International Lease Finance Corporation:
6.375%, 3-25-13		180		122
5.625%, 9-20-13		250		167
				289
Life Insurance - 0.51%
Liberty Mutual Holding Company Inc.,
7.800%, 3-15-37 (C)		360		161
StanCorp Financial Group, Inc.:
6.875%, 10-1-12		450		407
6.900%, 5-29-67		300		164
				732
Office REIT's - 0.34%
Highwoods Realty Limited Partnership,
5.850%, 3-15-17		805		498

Oil & Gas Storage & Transportation - 2.09%
Energy Transfer Partners, L.P.,
9.700%, 3-15-19		1,000		1,030
Kinder Morgan Energy Partners, L.P.,
9.000%, 2-1-19		1,330		1,388
Plains All American Pipeline, L.P.,
6.500%, 5-1-18		750		598
				3,016
Other Diversified Financial Services - 0.65%
General Electric Capital Corporation (Federal Deposit Insurance Corporation),
3.000%, 12-9-11 (A)		305		315
JPMorgan Chase & Co.,
7.900%, 4-29-49		750		624
				939
Other Mortgage-Backed Securities - 10.11%
ABFS Mortgage Loan Trust 2002-4,
7.423%, 12-15-33 (B)		89		51
Asset Securitization Corporation,
7.425%, 2-14-43 (B)		170		68
Asset Securitization Corporation (Interest Only),
1.581%, 10-13-26 (B)(D)(E)		880		20
Associates Manufactured Housing Contract Pass-Through Certificates,
7.725%, 6-15-28		70		66
Banc of America Alternative Loan Trust 2005-10:
5.669%, 11-25-35 (B)		273		38
5.669%, 11-25-35 (B)		132		9
Banc of America Alternative Loan Trust 2005-12:
5.806%, 1-25-36 (B)		292		24
5.806%, 1-25-36 (B)		212		7
Banc of America Alternative Loan Trust 2006-4,
6.223%, 5-25-46 (B)		317		62
Banc of America Alternative Loan Trust 2006-8,
6.267%, 11-25-46 (B)		141		5
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2001-1,
6.125%, 4-15-36 (D)		380		214
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2002-2:
6.200%, 7-11-43 (D)		275		141
4.772%, 7-11-43		456		439
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2003-1,
3.878%, 9-11-36		289		276
Banc of America Mortgage 2007-1 Trust,
6.000%, 3-25-37		166		19
Banc of America Mortgage Trust 2004-7,
5.750%, 8-25-34		78		61
Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6,
6.000%, 10-15-36 (D)		320		86
Bear Stearns Commercial Mortgage Securities Trust 2004-PWR4,
5.468%, 6-11-41 (B)		1,500		1,353
BlackRock Capital Finance,
7.750%, 9-25-26 (D)		95		36
Capital Auto Receivables Asset Trust 2007-1,
6.570%, 9-16-13 (C)		625		395
Capital Auto Receivables Asset Trust 2007-3,
8.000%, 3-17-14 (C)		480		326
CarMax Auto Owner Trust 2007-3,
7.580%, 3-17-14		380		266
C-Bass 2006-CB2 Trust,
5.860%, 12-25-36		530		255
C-Bass 2006-MH1 Trust:
6.240%, 10-25-36 (B)(D)		100		54
6.250%, 10-25-36 (B)(D)		170		110
CD 2006-CD2 Mortgage Trust,
5.618%, 1-15-46 (B)(C)		710		307
CD 2007-CD4 Commercial Mortgage Trust,
5.883%, 12-11-49 (C)		480		170
Cendant Mortgage Corporation and Bishop's Gate Residential Mortgage Trust,
6.250%, 6-25-32 (C)		112		61
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35 (B)		370		275
CHL Mortgage Pass-Through Trust 2004-J4,
5.250%, 5-25-34		675		306
Citibank Credit Card Issuance Trust, Class 2005-C1,
5.500%, 3-24-17		200		89
CitiMortgage Alternative Loan Trust, Series 2007-A7:
6.238%, 7-25-37 (B)		153		9
6.250%, 7-25-37		423		207
COMM 2006-CNL2,
5.570%, 2-5-19 (B)(D)		95		36
Commercial Mortgage Asset Trust,
6.000%, 11-17-32		225		102
CountryPlace Manufactured Housing Contract Trust 2005-1,
5.200%, 12-15-35 (B)(C)		300		120
CSFB Commercial Mortgage Trust 2003-C4,
5.322%, 8-15-36 (B)(D)		500		108
CWHEQ Home Equity Loan Trust, Series 2006-S3,
6.085%, 6-25-21 (B)		675		290
CWHEQ Home Equity Loan Trust, Series 2006-S6,
5.962%, 3-25-34 (B)		210		50
CWHEQ Home Equity Loan Trust, Series 2007-S2,
5.934%, 5-25-37		561		153
Discover Card Execution Note Trust,
5.650%, 3-16-20		385		292
First Horizon Mortgage Pass-Through Trust 2003-8,
5.134%, 10-25-33 (B)		92		21
Flagstar Home Equity Loan Trust 2007-1,
5.997%, 1-25-35 (B)(D)		415		140
Ford Credit Auto Owner Trust 2006-B,
7.120%, 2-15-13 (C)		140		90
Ford Credit Auto Owner Trust 2006-C,
6.890%, 5-15-13 (C)		200		126
Ford Credit Auto Owner Trust 2007-A,
7.050%, 12-15-13 (C)		175		108
GE Capital Commercial Mortgage Corp. 2002-2,
6.039%, 8-11-36 (D)		565		302
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage Securitization 2005-A LLC:
5.250%, 4-25-32		174		145
5.397%, 4-25-32 (B)		256		113
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC:
5.250%, 11-25-32 (C)		263		202
5.250%, 11-25-32 (C)		226		198
GMACM Home Equity Loan Trust 2006-HE3,
6.088%, 10-25-36 (B)		485		79
GMACM Home Equity Loan Trust 2007-HE1,
5.952%, 8-25-37 (B)		570		133
Green Tree Financial Corporation:
6.400%, 10-15-18		105		94
7.350%, 5-15-27		27		24
GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2001-LIB,
6.733%, 2-14-16 (D)		225		233
Home Equity Loan Trust 2003-HS2,
5.090%, 7-25-33 (B)		14		12
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38 (C)		435		159
Hometown Commercial Trust 2007-1, Commercial Mortgage-Backed Notes, Series 2007-1,
6.057%, 4-11-17 (C)		457		207
J.P. Morgan Mortgage Acquisition Trust 2006-CW2,
6.337%, 8-25-36 (B)		590		189
J.P. Morgan Mortgage Trust 2005-S2,
5.672%, 9-25-35 (B)		495		95
JPMorgan Auto Receivables Trust 2007-A,
7.090%, 2-15-14 (C)		148		102
Lehman XS Trust, Series 2005-8,
5.690%, 12-25-35		583		404
MASTR Asset Securitization Trust 2003-10,
5.500%, 11-25-33		134		117
MBNA Credit Card Master Note Trust,
6.800%, 7-15-14		325		172
Morgan Stanley Capital I Inc., 1999-FNVI, Class E,
7.695%, 3-15-31 (B)		1,000		997
Morgan Stanley Capital I Trust 2004-TOP15,
5.030%, 6-13-41		1,000		910
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4:
5.880%, 11-28-35 (B)(C)		155		12
5.880%, 11-28-35 (B)(C)		105		9
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4 (Interest Only),
1.146%, 11-28-35 (B)(C)(E)		3,640		42
National Collegiate Trust 1997-S2 (The),
7.240%, 9-20-14		115		40
Nomura Asset Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series 1998-D6,
6.000%, 3-15-30 (D)		500		299
Origen Manufactured Housing Contract Trust 2004-A,
5.700%, 1-15-35		100		71
Origen Manufactured Housing Contract Trust 2004-B,
5.730%, 11-15-35 (B)		50		35
Origen Manufactured Housing Contract Trust 2005-A:
4.490%, 5-15-18		75		72
5.860%, 6-15-36 (B)		120		82
Origen Manufactured Housing Contract Trust 2005-B,
5.605%, 5-15-22		80		65
RALI Series 2003-QS10 Trust,
5.750%, 5-25-33		235		174
RASC Series 2003-KS10 Trust,
6.410%, 12-25-33		86		34
Structured Asset Securities Corporation,
5.630%, 5-25-34 (B)		166		112
TimberStar Trust I,
6.208%, 10-15-36 (D)		460		164
Vanderbilt Mortgage and Finance, Inc.,
1.479%, 3-7-28 (B)		146		131
Wachovia Bank Commercial Mortgage Trust (The),
4.942%, 11-15-34 (D)		285		86
Wells Fargo Alternative Loan 2007-PA3 Trust,
6.176%, 7-25-37 (B)		865		49
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.250%, 8-25-33 (D)		263		109
WFS Financial 2005-1 Owner Trust, A4,
3.870%, 8-17-12		643		630
WFS Financial 2005-2 Owner Trust,
4.390%, 11-19-12		24		24
				14,568
Other Non-Agency REMIC/CMO - 1.58%
Banco Hipotecario Nacional,
7.916%, 7-25-09 (C)		7		---*
Bear Stearns Commercial Mortgage Securities Inc.,
5.064%, 5-14-16 (D)		2,000		2,003
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-WF2:
6.000%, 7-15-31 (D)		500		189
6.000%, 7-15-31 (D)		100		52
Mellon Residential Funding,
6.750%, 6-25-28		28		29
				2,273
Pharmaceuticals - 0.14%
Laboratory Corporation of America Holdings,
5.500%, 2-1-13		215		206

Property & Casualty Insurance - 0.68%
Chubb Corporation (The),
6.375%, 3-29-67		935		580
Fund American Companies, Inc.,
5.875%, 5-15-13		560		407
				987
Publishing - 0.34%
Thomson Reuters Corporation,
6.500%, 7-15-18		545		495

REITs - 0.39%
ERP Operating Limited Partnership,
5.375%, 8-1-16		470		331
Realty Income Corporation,
6.750%, 8-15-19		395		229
				560
Residential REITs - 0.39%
Camden Property Trust,
4.700%, 7-15-09		600		564

Retail Stores - Food / Drug - 0.12%
Safeway Inc.,
6.250%, 3-15-14		170		171

Secondary Oil & Gas Producers - 0.39%
Plains Exploration & Production Company,
7.750%, 6-15-15		750		566

Securities - 0.17%
Goldman Sachs Capital I,
6.345%, 2-15-34		5		4
Jefferies Group, Inc.,
6.250%, 1-15-36		400		237
				241
Service - Other - 0.13%
ERAC USA Finance Company,
5.900%, 11-15-15 (C)		265		192

Specialized REIT's - 0.28%
Healthcare Realty Trust Incorporated,
5.125%, 4-1-14		660		398

Tobacco - 1.17%
Altria Group, Inc.:
8.500%, 11-10-13		640		663
9.950%, 11-10-38		945		1,029
				1,692
Wireless - 0.13%
Nextel Communications, Inc.,
6.875%, 10-31-13		440		187

TOTAL CORPORATE DEBT SECURITIES - 34.55%			$	49,804
(Cost: $67,010)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations - 4.41%
Federal Home Loan Mortgage Corporation:
3.250%, 2-25-11		1,415		1,471
3.750%, 6-28-13		1,155		1,230
4.875%, 11-15-13		1,000		1,116
Federal National Mortgage Association:
4.250%, 5-15-09		500		507
4.750%, 12-15-10		750		802
3.875%, 7-12-13		1,155		1,226
				6,352
Mortgage-Backed Obligations - 30.15%
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
6.000%, 5-1-18		565		585
5.500%, 9-1-19		695		715
3.500%, 2-15-30		91		89
6.500%, 9-1-32		173		182
6.000%, 11-1-33		365		378
5.500%, 5-1-34		150		154
5.500%, 5-1-34		96		99
5.500%, 6-1-34		1,278		1,311
5.000%, 9-1-34		37		38
5.500%, 9-1-34		124		128
5.500%, 10-1-34		290		298
5.500%, 1-1-35		4,495		4,600
5.500%, 7-1-35		368		378
5.500%, 7-1-35		163		167
5.500%, 10-1-35		460		472
5.000%, 11-1-35		3,138		3,211
5.000%, 12-1-35		1,150		1,175
6.000%, 1-1-36		1,305		1,344
7.000%, 12-1-37		565		587
6.500%, 1-1-38		1,070		1,111
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
5.500%, 1-1-17		122		126
6.000%, 9-1-17		74		77
5.500%, 3-1-18		83		86
5.000%, 6-1-18		303		313
5.000%, 7-1-18		106		110
7.500%, 5-1-31		87		93
7.000%, 9-1-31		32		34
7.000%, 11-1-31		64		68
6.500%, 12-1-31		41		43
7.000%, 2-1-32		60		64
7.000%, 3-1-32		67		71
6.500%, 4-1-32		19		19
6.500%, 5-1-32		19		20
6.500%, 7-1-32		52		55
6.500%, 8-1-32		43		45
6.500%, 8-1-32		42		44
6.500%, 9-1-32		77		81
6.500%, 9-1-32		29		30
6.000%, 10-1-32		100		104
6.500%, 10-1-32		88		93
6.000%, 11-1-32		98		102
6.000%, 3-1-33		78		81
5.500%, 4-1-33		141		145
6.000%, 4-1-33		158		163
5.500%, 5-1-33		98		101
6.000%, 10-1-33		155		161
5.500%, 1-1-34		96		99
5.500%, 1-1-34		97		99
6.000%, 1-1-34		371		383
6.000%, 1-1-34		1,395		1,436
5.500%, 3-1-34		134		138
5.500%, 3-1-34		59		60
5.500%, 4-1-34		142		147
5.500%, 4-1-34		43		44
5.000%, 5-1-34		63		64
5.500%, 5-1-34		114		117
5.500%, 11-1-34		1,249		1,282
6.000%, 11-1-34		562		580
5.500%, 1-1-35		2,075		2,127
5.500%, 2-1-35		153		157
5.500%, 4-1-35		978		1,004
5.000%, 7-1-35		186		190
5.000%, 7-1-35		95		97
5.000%, 7-1-35		77		79
5.000%, 7-1-35		42		43
5.500%, 8-1-35		103		106
5.000%, 10-1-35		2,959		3,025
5.500%, 10-1-35		779		803
5.000%, 1-1-37		3,545		3,619
6.000%, 7-1-37		324		334
6.000%, 9-1-37		624		644
5.500%, 3-1-38		981		1,005
5.000%, 4-1-38		1,010		1,032
6.000%, 7-1-38		1,091		1,124
6.000%, 12-1-38		1,104		1,138
Government National Mortgage Association Agency REMIC/CMO (Interest Only), (E)
0.944%, 6-17-45 (B)		4,612		210
Government National Mortgage Association Fixed Rate Pass-Through Certificates,
5.500%, 1-1-35		2,845		2,929
				43,466

TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 34.56%			$	49,818
(Cost: $48,734)

UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations - 0.85%
United States Treasury Notes,
1.875%, 7-15-13 (F)		1,297		1,221

Treasury Obligations - 9.99%
United States Treasury Bonds,
5.375%, 2-15-31 (G)		2,775		3,813
United States Treasury Notes:
2.000%, 11-30-13		630		646
3.750%, 11-15-18		3,965		4,489
4.375%, 2-15-38		4,070		5,451
				14,399

TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 10.84%			$	15,620
(Cost: $13,572)

SHORT-TERM SECURITIES
Commercial Paper
Air Products and Chemicals, Inc.,
0.050%, 1-2-09		842		842
AT&T Inc.,
0.180%, 2-12-09		4,000		3,999
Avon Capital Corp. (Avon Products, Inc.),
0.450%, 1-20-09		6,002		6,001
Caterpillar Inc.,
0.160%, 1-26-09		5,000		4,999
ITT Corporation,
2.000%, 1-5-09		1,845		1,845
McCormick & Co. Inc.,
0.150%, 1-2-09		2,000		2,000
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)),
0.235%, 1-8-09		5,000		5,000
Toyota Motor Credit Corporation,
0.550%, 1-28-09		4,000		3,998


TOTAL SHORT-TERM SECURITIES - 19.90%			$	28,684
(Cost: $28,684)

TOTAL INVESTMENT SECURITIES - 100.00%			$	144,149
(Cost: $158,327)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$223	$(405)
Level 2 - Other Significant Observable Inputs	142,824	- ---
Level 3 - Significant Unobservable Inputs	1,102	- ---
Total	$144,149	$(405)

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

	Investments	Other Financial Instruments+
Beginning balance 3-31-08	$2,334	$ ---
Net realized gain (loss)	---*	- ---
Net change in unrealized appreciation (depreciation)++	(708)	- ---
Net purchases (sales)	(72)	- ---
Transfers in and/or out of Level 3	(452)	- ---
Ending Balance 12-31-08	$1,102	$ ---

Net change in unrealized appreciation (depreciation) from investments still held as of 12-31-08	$(749)	$ ---

++Net change in unrealized appreciation (depreciation) includes $1 from change in accrued amortization.

(A)Security is fully guaranteed by the Federal Deposit Insurance Corporation for both interest and principal under the Debt Guarantee Program of the Temporary Liquidity Guarantee Program.

(B)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2008.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At December 31, 2008, the total value of these securities amounted to $4,569 or 3.17% of total investment securities.

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

(F)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.

(G)Security serves as collateral for the following open futures contracts at December 31, 2008:

Description	Type	Expiration Date	Number of Contracts	Market Value			Unrealized Appreciation (Depreciation)

U.S. 10 Year Treasury Note	Long	3-20-09	(---)*		$	7,293		$	396
U.S. 30 Year Treasury Bond	Short	3-31-09	(---)*		(9,663)				(845)
U.S. 2 Year Treasury Note	Long	3-31-09	(---)*			4,143			44

					$	1,773		$	(405)

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

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

The Investments of Ivy Cundill Global Value Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares		Value
Bermuda - 7.01%
First Pacific Company Limited (A)	35,436		$	12,371
Montpelier Re Holdings Ltd.		695		11,666
				24,037
Canada - 8.53%
Fairfax Financial Holdings Limited (A)		46		14,698
Loblaw Companies Limited (A)		507		14,564
				29,262
Germany - 9.44%
Deutsche Telekom AG, Registered Shares (A)		914		13,797
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A)		121		18,586
				32,383
Ireland - 0.11%
Allied Irish Banks, p.l.c. (A)		108		262
Allied Irish Banks, p.l.c., ADR		28		130
				392
Italy - 11.63%
IFIL INVESTMENTS S.p.A. (A)		3,232		8,364
Italmobiliare S.p.A., Non-Convertible Savings Shares (A)		299		8,254
Mediaset S.p.A. (A)		2,558		14,740
Parmalat SpA (A)		5,093		8,544
				39,902
Japan - 24.56%
AIFUL Corporation (A)		1,160		3,338
Asatsu-DK Inc. (A)		492		10,900
Coca-Cola West Holdings Company, Limited (A)		86		1,857
Kirin Brewery Company, Limited (A)		1,071		14,239
Mabuchi Motor Co., Ltd. (A)		150		6,231
NIPPONKOA Insurance Company, Limited (A)(B)		799		6,216
Secom Co., Ltd. (A)(B)		84		4,314
Sega Sammy Holdings Inc.(A)		965		11,249
Sekisui House, Ltd. (A)(B)		630		5,558
Seven & i Holdings Co., Ltd. (A)		592		20,362
				84,264
South Korea - 7.62%
Korea Tobacco & Ginseng Corporation (A)		40		2,552
Samsung Electronics Co., Ltd. (A)		49		10,150
SK Telecom Co., Ltd. (A)		67		11,062
SK Telecom Co., Ltd., ADR		131		2,379
				26,143
Thailand - 3.70%
Thai Beverage Public Company Limited (A)	93,588			12,684

United States - 21.14%
BCE Inc.		285		5,840
Dell Inc. (B)		542		5,550
DIRECTV Group, Inc. (The) (B)		646		14,799
Liberty Media Corporation, Series A Liberty Entertainment (B)		857		14,982
Louisiana-Pacific Corporation		1,000		1,560
Microsoft Corporation		411		7,980
Office Depot, Inc. (B)		1,151		3,430
Pfizer Inc.		987		17,478
Viacom Inc., Class B (B)		47		903
				72,522

TOTAL COMMON STOCKS - 93.74%			$	321,589
(Cost: $408,316)

SHORT-TERM SECURITIES - 6.26%	Principal
Repurchase Agreements
J.P. Morgan Securities, Inc., Repurchase Agreement dated 12-31-08 to be repurchased at $21,488,
0.010%, 1-2-09 (C)	$	21,488	$	21,488
(Cost: $21,488)

TOTAL INVESTMENT SECURITIES - 100.00%			$	343,077
(Cost: $429,804)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$ 115,958	$ ---
Level 2 - Other Significant Observable Inputs	227,119	(8,316)
Level 3 - Significant Unobservable Inputs	- ---	- ---
Total	$ 343,077	$ (8,316)

The following forward currency contracts were outstanding at December 31, 2008:

	Type	Currency	Principal Amount Covered by Contract		Settlement Date	Unrealized Depreciation

	Sell	Euro		51,137	4-17-09		$1,294
	Sell	Japanese Yen		5,818,055	4-17-09		5,759
	Sell	Singapore Dollar		16,751	4-17-09		89
	Sell	South Korean Won		31,289,689	4-17-09		1,174
							$8,316

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

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

(C)Collateralized by $16,021 United States Treasury Bond, 4.500% due 2-15-36; market value and accrued interest aggregate $21,676.

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

Securities with an aggregate market value of $205,630, representing 59.94% of total investment securities, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees.

The Investments of Ivy Dividend Opportunities Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares		Value
Aerospace & Defense - 2.38%
Raytheon Company		102	$	5,219

Asset Management & Custody Banks - 0.77%
AllianceBernstein Holding L.P.		81		1,682

Communications Equipment - 4.21%
Consolidated Communications Holdings, Inc.		173		2,058
Nokia Corporation, Series A, ADR		196		3,058
QUALCOMM Incorporated		115		4,126
				9,242
Computer Hardware - 1.39%
Hewlett-Packard Company		84		3,039

Construction & Engineering - 3.34%
Chicago Bridge & Iron Company N.V., NY Shares		177		1,776
Fluor Corporation		124		5,553
				7,329
Construction & Farm Machinery & Heavy Trucks - 3.36%
Caterpillar Inc.		55		2,477
Deere & Company		128		4,901
				7,378
Consumer Finance - 1.10%
Capital One Financial Corporation		76		2,408

Data Processing & Outsourced Services - 0.59%
Visa Inc., Class A		25		1,301

Department Stores - 0.86%
Nordstrom, Inc.		142		1,884

Distillers & Vintners - 1.63%
Diageo plc, ADR		63		3,566

Diversified Banks - 4.47%
U.S. Bancorp		146		3,640
Wells Fargo & Company		209		6,175
				9,815
Diversified Metals & Mining - 0.86%
Rio Tinto plc, ADR		21		1,894

Electrical Components & Equipment - 1.16%
Emerson Electric Co.		69		2,537

Fertilizers & Agricultural Chemicals - 1.82%
Monsanto Company		57		3,996

General Merchandise Stores - 0.42%
Target Corporation		27		927

Health Care Equipment - 1.39%
Medtronic, Inc.		97		3,049

Hotels, Resorts & Cruise Lines - 0.53%
Starwood Hotels & Resorts Worldwide, Inc.		65		1,156

Household Products - 5.98%
Colgate-Palmolive Company		122		8,369
Procter & Gamble Company (The)		77		4,757
				13,126
Independent Power Producers & Energy Traders - 1.26%
NRG Energy, Inc. (A)		118		2,762

Industrial Gases - 1.16%
Air Products and Chemicals, Inc.		50		2,531

Integrated Oil & Gas - 5.54%
BP p.l.c., ADR		67		3,129
Exxon Mobil Corporation		113		9,025
				12,154
Integrated Telecommunication Services - 0.47%
Iowa Telecommunications Services, Inc.		73		1,040

Multi-Utilities - 1.13%
Dominion Resources, Inc.		69		2,486

Office REITs - 0.73%
Douglas Emmett, Inc.		123		1,610

Oil & Gas Drilling - 0.42%
Transocean Inc. (A)		19		915

Oil & Gas Equipment & Services - 5.51%
Halliburton Company		88		1,598
National Oilwell Varco, Inc. (A)		87		2,117
Schlumberger Limited		121		5,114
Smith International, Inc.		77		1,768
Weatherford International Ltd. (A)		138		1,496
				12,093
Oil & Gas Exploration & Production - 2.95%
Apache Corporation		50		3,730
XTO Energy Inc.		78		2,735
				6,465
Oil & Gas Storage & Transportation - 2.79%
El Paso Pipeline Partners, L.P.		144		2,241
Enbridge Inc.		57		1,856
NuStar GP Holdings, LLC		115		2,025
				6,122
Other Diversified Financial Services - 3.14%
Bank of America Corporation		76		1,066
J.P. Morgan Chase & Co.		185		5,819
				6,885
Pharmaceuticals - 3.58%
Abbott Laboratories		147		7,867

Property & Casualty Insurance - 2.56%
ACE Limited		47		2,469
Allstate Corporation (The)		31		1,010
Travelers Companies, Inc. (The)		47		2,138
				5,617
Railroads - 3.22%
Burlington Northern Santa Fe Corporation		36		2,710
Union Pacific Corporation		91		4,362
				7,072
Restaurants - 1.87%
McDonald's Corporation		66		4,101

Semiconductors - 2.38%
Microchip Technology Incorporated		267		5,212

Soft Drinks - 3.77%
Coca-Cola Company (The)		91		4,124
PepsiCo, Inc.		76		4,135
				8,259
Specialized Finance - 2.53%
CME Group Inc.		18		3,715
IntercontinentalExchange, Inc. (A)		22		1,834
				5,549
Steel - 1.20%
Nucor Corporation		57		2,631

Systems Software - 1.22%
Microsoft Corporation		138		2,686

Tobacco - 5.51%
Lorillard, Inc.		97		5,469
Philip Morris International Inc.		152		6,626
				12,095

TOTAL COMMON STOCKS - 89.20%			$	195,700
(Cost: $238,233)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Air Products and Chemicals, Inc.,
0.050%, 1-2-09	$	1,706		1,706
American Honda Finance Corp.,
0.250%, 3-3-09		4,673		4,671
Campbell Soup Co.,
0.050%, 1-28-09		4,000		4,000
Caterpillar Inc.,
0.160%, 1-26-09		5,000		4,999
General Mills, Inc.,
4.000%, 1-22-09		2,848		2,841
McCormick & Co. Inc.,
0.150%, 1-2-09		1,500		1,500
Praxair Inc.:
0.150%, 1-16-09		978		978
0.120%, 2-17-09		3,000		3,000

TOTAL SHORT-TERM SECURITIES - 10.80%			$	23,695
(Cost: $23,695)

TOTAL INVESTMENT SECURITIES - 100.00%			$	219,395
(Cost: $261,928)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$195,700	$ ---
Level 2 - Other Significant Observable Inputs	23,695	- ---
Level 3 - Significant Unobservable Inputs	- ---	- ---
Total	$219,395	$ ---

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

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

The Investments of Ivy European Opportunities Fund
December 31, 2008
(In Thousands)

COMMON STOCKS AND RIGHTS	Shares		Value
British Virgin Islands - 1.13%
Inmarsat plc (A)		412	$	2,872

Cayman Islands - 0.99%
Subsea 7 Inc. (A)(B)		425		2,524

Cyprus - 1.53%
Prosafe ASA (A)(B)		668		2,553
Prosafe Production (A)(B)		827		1,333
				3,886
France - 14.96%
Altamir Amboise (A)		501		1,778
BNP Paribas (A)(B)		75		3,237
Carrefour S.A. (A)(B)		181		6,988
France Telecom (A)		367		10,219
Sanofi-Aventis (A)		170		10,873
Societe Generale (A)		98		4,977
				38,072
Germany - 14.89%
adidas AG (A)(B)		108		4,125
Allianz Aktiengesellschaft, Registered Shares (A)(B)		27		2,873
Bayer Aktiengesellschaft (A)		176		10,236
Deutsche Borse AG (A)		73		5,312
Deutsche Telekom AG, Registered Shares (A)		670		10,106
RWE Aktiengesellschaft (A)		60		5,257
				37,909
Greece - 7.22%
Alpha Bank (A)		364		3,408
Coca-Cola Hellenic Bottling Company S.A. (A)		155		2,257
HELLENIC TELECOMMUNICATIONS ORGANISATION S.A. (A)(B)		168		2,790
National Bank of Greece S.A. (A)		227		4,212
OPAP S.A. (A)		199		5,723
				18,390
Ireland - 5.66%
CRH public limited company (A)		279		7,184
Grafton Group plc, Units (A)(B)	1,144			3,692
Paddy Power plc (A)		188		3,533
				14,409
Italy - 2.14%
Eni S.p.A. (A)		227		5,454

Luxembourg - 3.86%
Acergy S.A. (A)(B)		356		2,049
SES GLOBAL S.A., Fiduciary Deposit Receipts (A)		401		7,772
				9,821
Netherlands - 6.19%
Heineken N.V. (A)		191		5,855
Koninklijke KPN N.V. (A)(B)		185		2,694
TNT N.V. (A)		371		7,211
				15,760
Norway - 3.14%
SeaDrill Limited (A)		325		2,645
StatoilHydro ASA (A)(B)		320		5,350
				7,995
Spain - 2.69%
Banco Bilbao Vizcaya Argentaria, S.A. (A)		207		2,569
Industria de Diseno Textil, S.A. (A)		96		4,282
				6,851
Switzerland - 3.52%
Novartis AG, Registered Shares (A)		179		8,964

United Kingdom - 25.49%
Ashtead Group plc (A)	1,967			1,234
Aurora Russia Limited (A)(B)	1,557			361
BP p.l.c. (A)		628		4,917
British Sky Broadcasting Group plc (A)		471		3,374
GlaxoSmithKline plc (A)		538		10,147
Imperial Tobacco Group PLC (A)		353		9,556
Lloyds TSB Group plc (A)	1,923			3,694
Lloyds TSB Group plc, Rights (A)(B)		836		---*
Man Group plc (A)	1,294			4,519
MAXjet Airways, Inc. (A)(B)(C)	1,129			---*
MAXjet Airways, Inc. (A)(B)		150		---*
Royal Bank of Scotland Group plc (The) (A)	1,940			1,449
tesco plc (A)	1,383			7,309
Vodafone Group Plc (A)	4,833			10,043
William Hill PLC (A)	1,661			5,261
Wolseley plc (A)(B)		538		3,039
				64,903

TOTAL COMMON STOCKS AND RIGHTS - 93.41%			$	237,810
(Cost: $358,661)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 4.63%
Air Products and Chemicals, Inc.,
0.050%, 1-2-09	$	2,783		2,783
American Honda Finance Corp.,
0.250%, 3-3-09		3,000		2,999
Campbell Soup Co.,
0.050%, 1-28-09		6,000		6,000
				11,782
Commercial Paper (backed by irrevocable bank letter of credit) - 1.96%
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)),
0.600%, 1-14-09		5,000		4,999

TOTAL SHORT-TERM SECURITIES - 6.59%			$	16,781
(Cost: $16,781)

TOTAL INVESTMENT SECURITIES - 100.00%			$	254,591
(Cost: $375,442)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$ ---	$ ---
Level 2 - Other Significant Observable Inputs	254,591	- ---
Level 3 - Significant Unobservable Inputs	- ---*	- ---
Total	$254,591	$ ---

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

	Investments	Other Financial Instruments+
Beginning balance 3-31-08	$ ---*	$ ---
Net realized gain (loss)	---	- ---
Net change in unrealized appreciation (depreciation)	- ---*	- ---
Net purchases (sales)	---	- ---
Transfers in and/or out of Level 3	---	- ---
Ending Balance 12-31-08	$ ---*	$ ---

Net change in unrealized appreciation (depreciation) from investments still held as of 12-31-08	$ ---*	$ ---

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

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

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

Securities with an aggregate market value of $237,810, representing 93.41% of total investment securities, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees.

The Investments of Ivy Global Bond Fund
December 31, 2008
(In Thousands)

CORPORATE DEBT SECURITIES		Principal		Value
Aerospace & Defense - 0.99%
BAE Systems Holdings Inc.,
4.750%, 8-15-10 (A)		$	500	$	497

Agricultural Products - 0.40%
Bunge Limited Finance Corp.,
7.800%, 10-15-12			250		203

Agriculture - 0.74%
Ciliandra Perkasa Finance Company Pte. Ltd.,
10.750%, 12-8-11			250		120
COSAN FINANCE LIMITED,
7.000%, 2-1-17			128		85
IOI Resources (L) Berhad, Convertible,
0.000%, 1-15-13			200		168
					373
Banking - 0.63%
Banco BMG S.A.,
8.750%, 7-1-10			167		141
VTB Capital S.A.,
6.609%, 10-31-12			250		174
					315
Beverage / Bottling - 3.89%
AmBev International Finance Co. Ltd.,
9.500%, 7-24-17 (B)	BRL450				143
Diageo Capital plc,
7.375%, 1-15-14		$	250		266
Miller Brewing Company,
5.500%, 8-15-13			500		531
Molson Coors Capital Finance,
4.850%, 9-22-10			500		493
Panamerican Beverages, Inc.,
7.250%, 7-1-09			325		330
PepsiAmericas, Inc.,
5.750%, 7-31-12			200		197
					1,960
Cable / Media - 1.09%
British Sky Broadcasting Group plc,
8.200%, 7-15-09			250		254
Grupo Televisa, S.A.,
8.000%, 9-13-11			150		154
Rogers Wireless Inc.,
8.000%, 12-15-12			150		144
					552
Coal & Consumable Fuels - 0.47%
Peabody Energy Corporation,
6.875%, 3-15-13			250		237

Conglomerate / Diversified Mfg - 0.92%
Bombardier Inc.,
6.750%, 5-1-12			250		221
Ingersoll-Rand Global Holding Company Limited,
6.000%, 8-15-13			250		245
					466
Construction Business - 0.40%
Odebrecht Finance Ltd.,
7.500%, 10-18-17			250		200

Consumer Non-Cyclical - 0.35%
Wilmar International Limited, Convertible,
0.000%, 12-18-12			200		175

Consumer Products / Tobacco - 0.19%
Cosan S.A. Industria e Comercio,
8.250%, 11-15-19			175		98

Electric - 4.40%
Abu Dhabi National Energy Company PJSC,
5.620%, 10-25-12			750		681
Aquila, Inc.,
11.875%, 7-1-12 (C)			500		505
EDP Finance B.V.,
5.375%, 11-2-12			500		477
FirstEnergy Corp.,
6.450%, 11-15-11			275		260
HQI Transelec Chile S.A.,
7.875%, 4-15-11			300		298
					2,221
Energy - 0.73%
China Petroleum & Chemical Corporation, Convertible,
0.000%, 4-24-14 (B)	HKD800				99
CITIC Resources Holdings Limited,
6.750%, 5-15-14		$	400		268
					367
Finance Companies - 2.55%
C5 Capital (SPV) Limited,
6.196%, 12-31-49			250		115
Diageo Finance B.V.,
5.500%, 4-1-13			250		249
ISA Capital do Brasil S.A.,
7.875%, 1-30-12			500		472
Toyota Motor Credit Corporation,
6.750%, 9-21-09 (B)	NZD769				451
					1,287
Food Processors - 0.43%
Independencia International Ltd.,
9.875%, 5-15-15		$	150		82
Sadia Overseas Ltd.,
6.875%, 5-24-17			150		134
					216
Food Processors / Bev / Bottling - 0.42%
Iansa Overseas Limited,
7.250%, 7-28-12			250		212

Health Care Facilities - 0.41%
HealthSouth Corporation,
10.750%, 6-15-16			225		206

Health Care Facilities / Supplies - 0.41%
HCA Inc.,
9.125%, 11-15-14			225		209

Health Care Supply - 0.41%
DASA Finance Corporation,
8.750%, 5-29-18			270		205

Leisure - 0.38%
Royal Caribbean Cruises Ltd.,
8.750%, 2-2-11			250		192

Metals / Mining - 1.18%
ALROSA Finance S.A.,
8.875%, 11-17-14			250		152
Indo Integrated Energy B.V.,
8.500%, 6-1-12			400		224
Vedanta Resources plc,
6.625%, 2-22-10			250		221
					597
Oilfield Machinery & Service - 0.15%
Oceanografia, S.A. de C.V.,
11.250%, 7-15-15			150		78

Packaged Foods & Meats - 0.50%
Kraft Foods Inc.,
6.000%, 2-11-13			250		254

Paper / Forest Products - 1.96%
Celulosa Arauco y Constitucion S.A.,
8.625%, 8-15-10			500		519
International Paper Company,
7.400%, 6-15-14			250		205
Sino-Forest Corporation,
9.125%, 8-17-11			350		266
					990
Publishing - 0.64%
Pearson Dollar Finance Two plc,
5.500%, 5-6-13			350		321

Railroads - 0.59%
Burlington Northern Santa Fe Corporation,
5.900%, 7-1-12			300		297

Service - Other - 1.38%
Allied Waste Industries, Inc.,
6.500%, 11-15-10			250		241
Waste Management, Inc.,
7.375%, 8-1-10			450		456
					697
Steel - 0.39%
Evraz Group S.A.,
8.875%, 4-24-13			375		195

Trading Companies & Distributors - 1.11%
Noble Group Limited,
8.500%, 5-30-13			800		560

Transportation - Other - 0.32%
Ultrapetrol (Bahamas) Limited,
9.000%, 11-24-14			250		163

Utilities - 0.33%
CESP - Companhia Energetica de Sao Paulo,
9.750%, 1-15-15 (B)	BRL500				166

Utilities - Water - 0.46%
Veolia Environnement,
5.250%, 6-3-13		$	250		232

Wireless Telecommunication Service - 0.64%
Mobile TeleSystems OJSC,
8.700%, 6-12-18 (B)(C)	RUB6,000				161
VIP Finance Ireland Limited,
8.375%, 4-30-13		$	250		160
					321

TOTAL CORPORATE DEBT SECURITIES - 29.86%				$	15,062
(Cost: $16,975)

OTHER GOVERNMENT SECURITIES
Australia - 0.30%
Commonwealth of Australia Treasury Bonds,
5.750%, 6-15-11 (B)	AUD200			$	151

Canada - 2.56%
Canadian Government Bonds,
4.000%, 9-1-10 (B)	CAD1,500				1,291

France - 6.79%
French Treasury Notes (BTAN),
3.750%, 9-12-10 (B)	EUR2,400				3,425

Germany - 1.40%
Bundesobligation,
3.250%, 4-9-10 (B)	500				707

Mexico - 0.36%
United Mexican States Government Bonds,
9.000%, 12-24-09 (B)	MXN2,500				183

Norway - 0.98%
Norway Government Bonds,
6.000%, 5-16-11 (B)	NOK3,200				492

Russia - 0.56%
Open Joint Stock Company "Russian Railroads",
8.500%, 7-6-11 (B)	RUB10,000				281

Switzerland - 1.94%
Switzerland Government Bonds,
3.500%, 8-7-10 (B)	CHF1,000				981

United Kingdom - 2.74%
United Kingdom Treasury,
4.250%, 3-7-11 (B)	GBP900				1,382

TOTAL OTHER GOVERNMENT SECURITIES - 17.63%				$	8,893
(Cost: $9,855)

SENIOR LOANS - 0.47%
Consumer Products
Wm. Wrigley Jr. Company,
7.750%, 7-17-14 (C)		$	250	$	239
(Cost: $248)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations - 6.18%
Federal Home Loan Mortgage Corporation Agency REMIC/CMO (Interest Only), (D)
5.500%, 1-15-38	3,609				545
Federal National Mortgage Association Agency REMIC/CMO,
5.000%, 2-25-35			474		481
Federal National Mortgage Association Agency REMIC/CMO (Interest Only): (D)
5.000%, 6-25-22	1,092				100
5.000%, 7-25-23			944		115
5.500%, 1-25-33	1,590				174
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
5.000%, 3-1-22			775		797
5.000%, 8-1-23			392		403
Government National Mortgage Association Agency REMIC/CMO (Interest Only), (D)
5.000%, 7-16-22			991		109
Government National Mortgage Association Fixed Rate Pass-Through Certificates,
4.500%, 6-15-23			380		393

TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 6.18%				$	3,117
(Cost: $3,429)

UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations
United States Treasury Notes:
1.625%, 1-15-18 (E)			724		687
1.750%, 1-15-28 (E)			620		573

TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 2.50%				$	1,260
(Cost: $1,214)

SHORT-TERM SECURITIES
Commercial Paper - 25.59%
AT&T Inc.,
0.180%, 2-12-09	2,500				2,499
McCormick & Co. Inc.,
0.200%, 1-2-09			414		414
PepsiCo, Inc.,
0.100%, 1-28-09	2,500				2,500
Praxair Inc.,
0.150%, 1-16-09	1,500				1,500
Sara Lee Corporation,
1.250%, 1-7-09	2,500				2,499
Sonoco Products Co.,
1.700%, 1-5-09	1,000				1,000
Toyota Motor Credit Corporation,
0.550%, 1-28-09	2,500				2,499
					12,911

UNITED STATES GOVERNMENT OBLIGATIONS - 17.77%
United States Treasury Bills:
2.040%, 1-8-09	3,000				3,000
0.000%, 4-2-09	3,000				2,991
0.000%, 9-24-09	3,000				2,970
					8,961

TOTAL SHORT-TERM SECURITIES - 43.36%				$	21,872
(Cost: $21,872)

TOTAL INVESTMENT SECURITIES - 100.00%				$	50,443
(Cost: $53,593)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$ ---	$ ---
Level 2 - Other Significant Observable Inputs	50,162	779
Level 3 - Significant Unobservable Inputs	281	- ---
Total	$ 50,443	$ 779

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

	Investments	Other Financial Instruments+
Beginning balance 9-30-08	$ ---	$ ---
Net realized gain (loss)	- ---	- ---
Net change in unrealized appreciation (depreciation)**	(148)	- ---
Net purchases (sales)	429	- ---
Transfers in and/or out of Level 3	- ---	- ---
Ending Balance 12-31-08	$ 281	$ ---
Net change in unrealized appreciation (depreciation) from investments still held as of 12-31-08	$(148)	$ ---

The following forward currency contracts were outstanding at December 31, 2008:

Type	Currency	Principal Amount Covered by Contract		Settlement Date	Unrealized Appreciation			Unrealized Depreciation

Sell	Australian Dollar		203	8-27-09		$	30		$	---
Sell	Brazilian Real		1,015	1-7-09			61			---
Buy	British Pound		1	1-12-09			---			---	*
Sell	British Pound		535	5-26-09			58			---
Sell	British Pound		411	8-24-09			154			---
Sell	Canadian Dollar		1,563	8-24-09			201			---
Sell	Euro		3,000	12-22-09			148			---
Sell	Mexican Peso		2,600	1-7-09			54			---
Sell	New Zealand Dollar		814	9-21-09			40			---
Sell	Norwegian Krone		500	1-15-09			14			---
Sell	Norwegian Krone		3,000	5-4-09			---			2
Sell	Norwegian Krone		11	5-15-09			---			---	*
Sell	Russian Ruble		17,825	11-20-09			25			---
Sell	Swiss Franc		1,000	12-22-09			---			4
						$	785		$	6

*Not shown due to rounding.

(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At December 31, 2008, the total value of these securities amounted to $497 or 0.99% of total investment securities.

(B)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, HKD - Hong Kong Dollar, MXN - Mexican Peso, NOK - Norwegian Krone, NZD - New Zealand Dollar and RUB - Russian Ruble).

(C)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2008.

(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.

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

The Investments of Ivy Global Natural Resources Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares		Value
Bermuda - 0.59%
Bunge Limited		300	$	15,531

Brazil - 12.77%
Companhia de Saneamento de Minas Gerais (A)		4,196		33,843
Companhia Energetica de Minas Gerais - CEMIG, ADR		450		6,183
Companhia Vale do Rio Doce, ADR		9,000		95,850
Petroleo Brasileiro S.A.- Petrobras, ADR		6,000		122,460
Suzano Bahia Sul Papel E Celulose S.A. (A)		8,950		46,400
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS (A)		900		9,976
Votorantim Celulose e Papel S.A. (A)		885		6,805
Votorantim Celulose e Papel S.A., ADR		1,980		15,701
				337,218
Canada - 13.80%
Agnico-Eagle Mines Limited		175		8,983
Aquiline Resources Inc. (A)(B)		2,000		2,841
ARISE Technologies Corporation (A)(B)		5,000		2,176
Atacama Minerals Corp. (A)(B)(C)(D)		5,880		1,171
Cameco Corporation		466		8,032
Canadian Natural Resources Limited (A)		2,125		85,059
EnCana Corporation (A)		375		17,538
First Quantum Minerals Ltd. (A)		700		10,121
MGM Energy Corp. (A)(B)	12,543			1,957
Pason Systems Inc. (A)		476		5,487
Potash Corporation of Saskatchewan Inc.		2,000		146,440
Sino-Forest Corporation (A)(B)(C)		2,011		16,295
Suncor Energy Inc. (A)		3,000		58,428
				364,528
Cayman Islands - 1.49%
China High Speed Transmission Equipment Group Co.,Ltd. (A)	12,100			14,765
JA Solar Holdings Co., Ltd., ADR (B)		2,500		10,925
Subsea 7 Inc. (A)(B)		2,300		13,674
				39,364
Chile - 1.57%
Sociedad Quimica y Minera de Chile S.A., ADR		1,700		41,463

China - 1.62%
Yingli Green Energy Holding Company Limited, ADR (B)(D)		7,000		42,700

Cyprus - 0.55%
Buried Hill Energy (Cyprus) Public Company Limited (A)(B)(E)		3,630		14,520

Denmark - 1.00%
Vestas Wind Systems A/S (A)(B)		450		26,481

France - 0.43%
Vallourec (A)		100		11,370

Germany - 2.35%
SGL Carbon AG (A)(B)		1,500		50,222
Wacker Chemie AG (A)(B)		110		11,834
				62,056
Hong Kong - 0.53%
Guangdong Investment Limited (A)	34,700			14,034

Indonesia - 0.53%
PT Bumi Resources Tbk (A)		5,932		491
PT Indo Tambangraya Megah Tbk. (A)		2,283		2,202
PT Tambang Batubara Bukit Asam (Persero) Tbk (A)(B)	18,000			11,370
				14,063
Israel - 1.01%
Israel Chemicals Ltd. (A)		3,800		26,583

Kazakhstan - 0.72%
Joint Stock Company KazMunaiGas Exploration Production, GDR (A)		1,497		18,981

Luxembourg - 0.30%
Tenaris S.A., ADR		375		7,868

Netherlands - 0.54%
AMG Advanced Metallurgical Group N.V. (A)(B)		396		3,866
Core Laboratories N.V.		175		10,475
				14,341
Norway - 2.53%
Aker Solutions ASA (A)		2,846		18,825
Renewable Energy Corporation ASA (A)(B)		5,000		47,894
				66,719
Panama - 1.25%
McDermott International, Inc. (B)		3,350		33,098

Philippines - 0.19%
Energy Development Corporation (A)	86,700			3,614
Manila Water Company, Inc. (A)		5,175		1,479
				5,093
Russia - 4.73%
OAO TMK, GDR		341		1,340
Open Joint Stock Company Gazprom, ADR (B)		6,750		97,249
Uralkali Group, GDR		2,940		26,401
				124,990
Singapore - 0.31%
Straits Asia Resources Limited (A)	15,000			8,211

South Africa - 0.91%
Impala Platinum Holdings Limited (A)		1,673		24,045

Spain - 1.04%
Gamesa Corporacion Tecnologica, S.A. (A)		1,500		27,350

Thailand - 0.95%
Banpu Public Company Limited		2,875		19,192
Banpu Public Company Limited, Registered Shares (A)		885		5,979
				25,171
United Kingdom - 2.29%
Eurasian Natural Resources Corporation PLC (A)(B)		2,500		12,139
Randgold Resources Limited, ADR		1,100		48,312
				60,451
United States - 38.96%
Allegheny Technologies Incorporated		2,200		56,166
Alpha Natural Resources, Inc. (B)		1,050		16,999
Cameron International Corporation (B)		3,100		63,550
Celanese Corporation, Series A		2,500		31,075
Complete Production Services, Inc. (B)		2,300		18,745
CONSOL Energy Inc.		400		11,432
Copano Energy, L.L.C., Units		1,000		11,670
DCP Midstream Partners, LP		283		2,657
El Paso Corporation		2,000		15,660
Enbridge Energy Partners, L.P.		337		8,586
Energy Recovery, Inc. (B)		850		6,443
Energy Transfer Equity, L.P.		1,000		16,210
Energy Transfer Partners, L.P.		1,500		51,015
Enterprise Products Partners L.P.		1,500		31,095
Foster Wheeler Ltd. (B)		1,150		26,887
GrafTech International Ltd. (B)		4,800		39,936
Halliburton Company		2,000		36,360
Magellan Midstream Holdings, L.P.		500		6,935
MarkWest Energy Partners, L.P.		450		3,591
Massey Energy Company		2,325		32,062
Monsanto Company		275		19,346
Mosaic Company		1,800		62,280
National Oilwell Varco, Inc. (B)		2,600		63,544
Oceaneering International, Inc. (B)		495		14,424
Peabody Energy Corporation		2,500		56,875
Petrohawk Energy Corporation (B)		7,750		121,133
Plains All American Pipeline, L.P.		1,000		34,690
Regency Energy Partners LP		650		5,232
Rockwood Holdings, Inc. (B)		3,500		37,800
Shaw Group Inc. (The) (B)		425		8,700
Smith International, Inc.		550		12,590
Southwestern Energy Company (B)		425		12,312
Targa Resources Partners LP		500		3,875
Transocean Inc. (B)		1,050		49,612
Verso Paper Holdings LLC (D)		2,637		2,717
Williams Companies, Inc. (The)		1,770		25,630
Williams Partners L.P.		931		11,116
				1,028,950

TOTAL COMMON STOCKS - 92.96%			$	2,455,179
(Cost: $4,334,245)

PREFERRED STOCKS
Brazil - 2.21%
Bradespar S.A. (A)		3,120		25,661
CESP - Companhia Energetica de Sao Paulo (A)		4,000		25,883
Companhia Energetica de Minas Gerais - CEMIG (A)		500		6,812
				58,356
United States - 0.80%
Konarka Technologies, Inc., 8.0% Cumulative (B)(E)		3,500		21,063

TOTAL PREFERRED STOCKS - 3.01%			$	79,419
(Cost: $113,615)

CORPORATE DEBT SECURITIES		Principal
Brazil - 0.17%
Bahia Sul Celulose S.A.,
8.614%, 12-1-12 (C)(F)(G)	BRL10,692				4,585

Cayman Islands - 0.18%
Yingli Green Energy Holding Company Limited, Convertible,
0.000%, 12-15-12			$9,000		4,635

TOTAL CORPORATE DEBT SECURITIES - 0.35%				$	9,220
(Cost: $9,830)

SHORT-TERM SECURITIES
Commercial Paper - 2.92%
Air Products and Chemicals, Inc.,
0.050%, 1-2-09			3,292		3,292
Campbell Soup Co.,
0.050%, 1-28-09			6,000		6,000
Eli Lilly and Company,
1.350%, 1-5-09			30,000		29,995
PepsiCo, Inc.,
0.100%, 1-28-09			10,000		9,999
Toyota Motor Credit Corporation:
1.650%, 1-5-09			5,000		4,999
1.700%, 1-8-09			15,000		14,995
0.550%, 1-28-09			8,000		7,997
					77,277
Commercial Paper (backed by irrevocable bank letter of credit) - 0.76%
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)):
0.600%, 1-14-09			10,000		9,998
0.850%, 1-23-09			10,000		9,995
					19,993

TOTAL SHORT-TERM SECURITIES - 3.68%				$	97,270
(Cost: $97,270)

TOTAL INVESTMENT SECURITIES - 100.00%				$	2,641,088
(Cost: $4,554,960)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$1,981,959	$ ---
Level 2 - Other Significant Observable Inputs	618,961	(3,901)
Level 3 - Significant Unobservable Inputs	40,168	- ---
Total	$2,641,088	$(3,901)

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

	Investments	Other Financial Instruments+
Beginning balance 9-30-08	$27,887	$ ---
Net realized gain (loss)	960	- ---
Net change in unrealized appreciation (depreciation)*	12,256	- ---
Net purchases (sales)	(935)	- ---
Transfers in and/or out of Level 3	- ---	- ---
Ending Balance 12-31-08	$40,168	$ ---

Net change in unrealized appreciation (depreciation) from investments still held as of 12-31-08	$12,707	$ ---

*Net change in unrealized appreciation (depreciation) includes ($56) from change in accrued amortization.

The following forward currency contracts were outstanding at December 31, 2008:

Type	Currency	Principal Amount Covered by Contract		Settlement Date	Unrealized Appreciation			Unrealized Depreciation

Sell	British Pound		2,000	1-15-09		$	99		$	---
Sell	Euro		5,800	2-5-09			---			552
Sell	Euro		15,300	3-5-09			---			1,734
Sell	Norwegian Krone		32,000	1-22-09			103			---
Sell	Norwegian Krone		44,000	2-5-09			327			---
Sell	Norwegian Krone		174,000	2-12-09			---			130
Sell	South African Rand		64,000	1-14-09			---			618
Sell	South African Rand		42,470	2-11-09			---			351
Sell	South African Rand		45,000	2-25-09			---			457
Sell	South African Rand		59,000	3-11-09			---			588
						$	529		$	4,430

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

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

(D)Deemed to be an affiliate due to the Fund having at least 5% of the voting securities.

(E)Illiquid restricted securities. At December 31, 2008, the following restricted securities were owned:

Security	Acquisition Date		Shares	Cost	Market Value

Buried Hill Energy (Cyprus) Public Company Limited		05-01-07 04-18-08	3,630	$6,182	$14,520
Konarka Technologies, Inc., 8.0% Cumulative		08-31-07	3,500	10,850	21,063

				$17,032	$35,583

The total value of these securities represented approximately 1.35% of investment securities at December 31, 2008.

(F)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2008.

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

Securities with an aggregate market value of $442,509, representing 16.75% of investment securities, 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 Depository Receipts

The Investments of Ivy International Balanced Fund
December 31, 2008
(In Thousands)

COMMON STOCKS AND RIGHTS	Shares		Value

Austria - 0.81%
Telekom Austria Aktiengesellschaft (A)		129	$	1,874

Belgium - 0.89%
Belgacom SA (A)		54		2,053

Canada - 0.61%
Biovail Corporation (A)		149		1,416

China - 0.37%
China Telecom Corporation Limited (A)(B)		360		136
China Telecom Corporation Limited (A)		1,848		699
Focus Media Holding Limited, ADR (C)		1		8
				843
Finland - 1.25%
Stora Enso Oyj, Class R (A)		105		832
UPM-Kymmene Corporation (A)		160		2,057
				2,889
France - 8.76%
AXA S.A. (A)		110		2,460
France Telecom (A)		221		6,152
Sanofi-Aventis (A)		79		5,082
Sanofi-Aventis (A)(D)		22		1,381
THOMSON (A)(C)		366		495
TOTAL S.A. (A)		53		2,888
Vivendi Universal (A)		55		1,782
				20,240
Germany - 5.05%
Bayerische Motoren Werke Aktiengesellschaft (A)		69		2,153
Deutsche Post AG (A)		70		1,178
Infineon Technologies AG (A)(C)		355		472
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A)		17		2,637
SAP Aktiengesellschaft (A)		73		2,629
Siemens AG (A)		34		2,596
				11,665
Hong Kong - 0.52%
Hutchison Whampoa Limited, Ordinary Shares (A)		239		1,207

Israel - 1.12%
Check Point Software Technologies Ltd. (C)		136		2,577

Italy - 1.92%
AUTOGRILL S.p.A. (A)		147		1,127
Eni S.p.A. (A)		84		2,018
UniCredit S.p.A. (A)		506		1,287
				4,432
Japan - 6.00%
AIFUL Corporation (A)		54		156
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)		321		2,018
NGK SPARK PLUG CO., LTD. (A)		207		1,663
Olympus Corporation (A)		99		1,982
Promise Co., Ltd. (A)		46		1,172
Sony Corporation (A)		62		1,345
Toyota Motor Corporation (A)		79		2,621
USS Co., Ltd. (A)		55		2,911
				13,868
Netherlands - 2.84%
ING Groep N.V., Certicaaten Van Aandelen (A)		228		2,508
Koninklijke Philips Electronics N.V., Ordinary Shares (A)		40		802
Randstad Holding nv (A)(C)		67		1,367
Reed Elsevier NV (A)		159		1,893
				6,570
Norway - 1.58%
Aker Solutions ASA (A)		230		1,518
Norske Skogindustrier ASA (A)(C)		163		324
Telenor ASA (A)		268		1,809
				3,651
Singapore - 1.49%
DBS Group Holdings Ltd (A)		79		465
DBS Group Holdings Ltd, Rights (A)(C)		40		84
Flextronics International Ltd. (C)		478		1,224
Singapore Telecommunications Limited (A)		931		1,659
				3,432
South Korea - 1.87%
KB Financial Group Inc., ADR		20		517
Samsung Electronics Co., Ltd. (A)		8		3,075
Samsung Electronics Co., Ltd., GDR (B)		4		718
				4,310
Spain - 1.31%
Telefonica, S.A., ADR		45		3,015
Telefonica, S.A., Brazilian Depositary Receipts (A)		1		13
				3,028
Sweden - 1.62%
Niscayah Group AB (A)		968		860
Telefonaktiebolaget LM Ericsson, B Shares (A)		367		2,889
				3,749
Switzerland - 5.80%
ACE Limited		46		2,460
Adecco S.A. (A)		93		3,178
Nestle S.A., Registered Shares (A)		33		1,309
Novartis AG, Registered Shares (A)		65		3,232
Swiss Reinsurance Company, Registered Shares (A)		40		1,980
UBS AG (A)(C)		85		1,240
				13,399
Taiwan - 4.97%
Chunghwa Telecom Co., Ltd., ADR		167		2,605
Compal Electronics Inc., GDR (B)		135		355
Compal Electronics Inc., GDR		55		146
Lite-On Technology Corporation (A)		1,734		1,141
Lite-On Technology Corporation, GDR (A)		261		1,703
Mega Financial Holding Company (A)		6,790		2,395
Taiwan Semiconductor Manufacturing Company Ltd. (A)		2,293		3,128
				11,473
United Kingdom - 15.03%
Aviva plc (A)		297		1,706
BP p.l.c. (A)		424		3,324
British Sky Broadcasting Group plc (A)		231		1,654
Compass Group PLC (A)		392		1,984
GlaxoSmithKline plc (A)		199		3,761
Group 4 Securicor plc (A)		898		2,712
HBOS plc (A)		161		169
HBOS plc, Rights (A)(C)		222		---	*
HSBC Holdings plc (A)		191		1,893
Kingfisher plc (A)		1,775		3,547
Marks and Spencer Group plc (A)(C)		263		836
Old Mutual plc (A)		1,974		1,610
Pearson plc (A)		168		1,603
Persimmon plc (A)		601		2,039
Premier Brands Foods plc (A)		812		360
Rentokil Initial plc (A)		851		552
Royal Bank of Scotland Group plc (The) (A)		921		688
Royal Dutch Shell plc, Class B (A)		71		1,833
tesco plc (A)		158		835
Vodafone Group Plc (A)		1,679		3,488
Vodafone Group Plc, ADR		7		135
				34,729

TOTAL COMMON STOCKS AND RIGHTS - 63.81%			$	147,405

(Cost: $241,232)

OTHER GOVERNMENT SECURITIES		Principal

Australia - 1.80%
New South Wales Treasury Corporation,
6.000%, 5-1-12 (E)	AUD4,600				3,409
Queensland Treasury Corporation,
6.000%, 7-14-09 (E)			1,050		756
					4,165
Canada - 0.05%
Province of Ontario,
6.250%, 6-16-15 (E)		NZD189			114

France - 4.44%
French Treasury Bond (OAT),
4.250%, 10-25-17 (E)		EUR6,920			10,259

Germany - 2.75%
KfW, Frankfurt/Main, Federal Republic of Germany:
2.000%, 2-27-09 (E)		CHF3,100			2,919
3.000%, 12-4-09 (E)			3,100		2,969
6.500%, 11-15-11 (E)		NZD739			457
					6,345
Greece - 0.51%
Hellenic Republic Government Bonds,
2.125%, 4-10-09 (E)		CHF1,250			1,179

Malaysia - 3.41%
Malaysian Government Bonds:
7.000%, 3-15-09 (E)		MYR580			169
3.756%, 4-28-11 (E)			8,550		2,513
3.461%, 7-31-13 (E)		12,435			3,657
3.814%, 2-15-17 (E)			1,955		584
4.240%, 2-7-18 (E)			3,110		966
					7,889
Mexico - 3.14%
United Mexican States Government Bonds:
8.000%, 12-19-13 (E)	MXN34,000				2,472
7.250%, 12-15-16 (E)			35,000		2,422
10.000%, 12-5-24 (E)			28,500		2,364
					7,258
Netherlands - 1.29%
Netherlands Government Bonds,
4.500%, 7-15-17 (E)		EUR2,000			2,981

New Zealand - 0.11%
New Zealand Government Bonds,
6.000%, 11-15-11 (E)		NZD410			251

Norway - 0.43%
Norway Government Bonds,
5.500%, 5-15-09 (E)	NOK6,980				1,002

Poland - 3.80%
Poland Government Bonds:
6.000%, 5-24-09 (E)		PLN9,425			3,180
6.250%, 10-24-15 (E)			3,250		1,144
5.750%, 9-23-22 (E)			12,770		4,448
					8,772
South Korea - 4.85%
South Korea Treasury Bonds:
4.750%, 6-10-09 (E)	KRW1,100,000				879
5.250%, 9-10-12 (E)		4,100,000			3,429
5.500%, 9-10-17 (E)		4,000,000			3,461
5.250%, 3-10-27 (E)		4,053,000			3,440
					11,209
Supranational - 0.56%
European Investment Bank:
0.722%, 9-21-11 (E)(F)		JPY68,000			737
6.500%, 9-10-14 (E)		NZD861			546
					1,283
Sweden - 3.12%
Sweden Government Bonds:
5.000%, 1-28-09 (E)	SEK53,050				6,788
4.000%, 12-1-09 (E)			1,970		258
Swedish Export Credit Corporation,
7.625%, 6-30-14 (E)		NZD255			152
					7,198

TOTAL OTHER GOVERNMENT SECURITIES - 30.26%				$	69,905

(Cost: $78,097)

SHORT-TERM SECURITIES

Commercial Paper - 4.20%
Air Products and Chemicals, Inc.,
0.050%, 1-2-09			$1,701		1,701
American Honda Finance Corp.,
0.250%, 3-3-09			3,000		2,999
Campbell Soup Co.,
0.050%, 1-28-09			2,000		2,000
Hershey Company (The),
0.150%, 1-28-09			3,000		3,000
					9,700
Commercial Paper (backed by irrevocable bank letter of credit) - 1.73%
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)),
0.850%, 1-23-09			4,000		3,998

TOTAL SHORT-TERM SECURITIES - 5.93%				$	13,698

(Cost: $13,698)

TOTAL INVESTMENT SECURITIES - 100.00%				$	231,008

(Cost: $333,027)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$13,970	$---
Level 2 - Other Significant Observable Inputs	217,038	3,364
Level 3 - Significant Unobservable Inputs	- ---	---
Total	$231,008	$3,364

The following forward currency contracts were outstanding at December 31, 2008:
	Type	Currency	Principal Amount Covered by Contract		Settlement Date	Unrealized Appreciation		Unrealized Depreciation

	Sell	Euro		416	9-23-09		$13		$ -
	Sell	Euro		926	9-30-09		56		- -
	Sell	Euro		12,350	11-16-09		- -		1,783
	Buy	Malaysian Ringgit		4,530	9-30-09		- -		23
	Buy	Mexican Peso		41,699	12-22-09		- -		136
	Buy	Mexican Peso		17,318	12-23-09		- -		61
	Buy	Mexican Peso		27,767	12-24-09		- -		93
	Sell	Mexican Peso		105,500	2-11-09		1,851		- -
	Sell	South Korean Won		9,182,050	2-13-09		2,339		- -
	Sell	South Korean Won		521,950	2-25-09		134		- -
	Sell	South Korean Won		1,100,000	3-27-09		247		- -
	Sell	South Korean Won		430,416	4-1-09		98		- -
	Sell	South Korean Won		550,000	4-6-09		126		- -
	Buy	Swedish Krona		4,000	9-23-09		- -		80
	Buy	Swedish Krona		124,600	11-16-09		522		- -
	Buy	Swiss Franc		7,723	2-11-09		259		- -
	Buy	Swiss Franc		1,136	3-27-09		- -		55
	Buy	Swiss Franc		445	4-1-09		- -		22
	Buy	Swiss Franc		571	4-6-09		- -		28
							$5,645		$2,281

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

(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 December 31, 2008, the total value of these securities amounted to $1,209 or 0.52% of total investment securities.

(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 liquid under guidelines established by the Board of Trustees. At December 31, 2008, the total value of this security amounted to 0.60% of total investment securities.

(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 and SEK - Swedish Krona)

(F)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2008.

Securities with an aggregate market value of $130,430, representing 56.46% of total investments, 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

The Investments of Ivy International Core Equity Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares			Value
Australia - 1.66%
National Australia Bank Ltd (A)(B)		272		$	4,079

Bermuda - 1.80%
Esprit Holdings Limited (B)		772			4,399

Brazil - 1.00%
Petroleo Brasileiro S.A. - Petrobras, ADR		100			2,451

Canada - 1.27%
Shoppers Drug Mart Corporation (B)		79			3,123

Cayman Islands - 1.02%
Mindray Medical International Limited, ADR		140			2,511

China - 2.96%
China Communications Construction Company Limited,H Shares (B)	2,037				2,545
China Construction Bank Corporation(B)	4,056				2,257
SINA Corporation (A)		106			2,461
					7,263
Finland - 1.41%
Nokia OYJ (B)		220			3,456

France - 15.44%
ALSTOM (B)		59			3,499
AXA S.A. (B)		151			3,396
France Telecom (B)		163			4,544
Publicis Groupe S.A. (B)		112			2,900
Sanofi-Aventis (B)		44			2,842
Societe Generale (B)		57			2,903
Technip-Coflexip (A)(B)		141			4,325
TOTAL S.A. (B)		134			7,370
Vivendi Universal (B)		187			6,079
					37,858
Germany - 5.29%
Bayer Aktiengesellschaft (B)		97			5,611
Deutsche Telekom AG, Registered Shares (B)		293			4,429
Symrise AG (A)(B)		211			2,932
					12,972
Hong Kong - 2.58%
Cheung Kong (Holdings) Limited (B)		381			3,635
CNOOC Limited (B)	2,837				2,698
					6,333
India - 1.19%
Tata Consultancy Services Limited (A)(B)		295			2,915

Italy - 1.26%
Banca Intesa S.p.A. (B)		848			3,081

Japan - 17.68%
Astellas Pharma Inc. (A)(B)		74			3,029
Central Japan Railway Company (B)		---	*		3,643
Honda Motor Co., Ltd. (B)		117			2,496
Japan Tobacco Inc. (B)		1			2,882
KOSE Corporation (B)		137			3,446
Mitsubishi Electric Corporation (B)		773			4,844
Mitsui & Co., Ltd. (B)		372			3,824
Nintendo Co., Ltd. (B)		16			6,229
Nissin Kogyo Co., Ltd. (B)		558			4,150
Nomura Research Institute, Ltd. (A)(B)		197			3,754
Tohoku Electric Power Company, Incorporated (A)(B)		186			5,043
					43,340
Netherlands - 2.88%
ASML Holding N.V., Ordinary Shares (B)		192			3,458
Heineken N.V. (B)		118			3,599
					7,057
Norway - 2.08%
Cermaq ASA (B)		543			2,090
Telenor ASA (B)		447			3,018
					5,108
Singapore - 3.61%
DBS Group Holdings Ltd (B)		375			2,209
DBS Group Holdings Ltd, Rights (A)(B)		188			399
Singapore Exchange Limited (A)(B)		801			2,854
Singapore Telecommunications Limited (B)	1,899				3,384
					8,846
Spain - 2.42%
Telefonica, S.A. (B)		263			5,930

Sweden - 1.12%
Svenska Cellulosa Aktiebolaget SCA (publ), Class B (B)		313			2,744

Switzerland - 8.90%
Nestle S.A., Registered Shares (B)		188			7,442
Roche Holdings AG, Genussschein (B)		47			7,351
Syngenta AG (B)		22			4,346
TEMENOS Group AG (A)(B)		198			2,668
					21,807
United Kingdom - 14.29%
BAE Systems plc (B)	1,015				5,605
Barclays PLC (B)	1,331				3,070
British American Tobacco p.l.c. (B)		96			2,538
Home Retail Group plc (A)(B)		828			2,594
Informa plc (B)		479			1,719
International Power plc (B)		649			2,295
Prudential plc (B)		624			3,844
Serco Group plc (B)		525			3,491
Tanfield Group PLC (A)(B)	2,233				166
Vodafone Group Plc (B)	2,428				5,045
WPP Group plc (A)(B)		437			2,591
Xstrata plc (B)		219			2,080
					35,038
United States - 1.11%
Research In Motion Limited (A)		67			2,708

TOTAL COMMON STOCKS - 90.97%				$	223,019
(Cost: $290,484)

PREFERRED STOCKS - 1.09%
Germany
Henkel AG & Co. KGaA (B)		84		$	2,675
(Cost: $3,700)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Air Products and Chemicals, Inc.,
0.050%, 1-2-09	$	1,992		1,992
Clorox Co.,
3.350%, 1-22-09		10,000		9,981
ITT Corporation,
1.250%, 2-4-09		2,000		1,998
McCormick & Co. Inc.,
0.150%, 1-2-09		2,500		2,500
Sonoco Products Co.,
2.100%, 1-5-09		3,000		2,999

TOTAL SHORT-TERM SECURITIES - 7.94%			$	19,470
(Cost: $19,470)

TOTAL INVESTMENT SECURITIES - 100.00%			$	245,164
(Cost: $313,654)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$13,255	$ ---
Level 2 - Other Significant Observable Inputs	231,909	1,458
Level 3 - Significant Unobservable Inputs	- ---	---
Total	$245,164	$1,458

The following forward currency contracts were outstanding at December 31, 2008:

Type	Currency	Principal Amount Covered by Contract		Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Buy	Australian Dollar		11,000	5-18-09		$	512		$	---
Sell	Chinese Yuan Renminbi		69,450	5-18-09			---			19
Buy	Japanese Yen		672,500	9-25-09			965			---
						$	1,477		$	19

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

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

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

Securities with an aggregate market value of $212,041, representing 86.49% of total investment securities, 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

The Investments of Ivy International Growth Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares			Value
Australia - 1.62%
Novogen LTD (A)(B)		464		$	265
Telstra Corporation Limited (B)		800			2,184
					2,449
Brazil - 1.21%
Petroleo Brasileiro S.A. - Petrobras, ADR		74			1,818

Canada - 2.30%
Shoppers Drug Mart Corporation (B)(C)		38			1,492
Shoppers Drug Mart Corporation (B)		50			1,973
					3,465
China - 1.61%
China Life Insurance Company Limited, ADR		34			1,569
China South Locomotive & Rolling Stock Corporation Limited, H Shares (A)(B)(C)	1,590				864
					2,433
Denmark - 0.85%
Carlsberg Group (A)(B)		39			1,275

Finland - 1.43%
Fortum Oyj (B)		63			1,369
Nokia OYJ (B)		50			785
					2,154
France - 12.64%
ALSTOM (B)		26			1,549
EDF SA (B)		32			1,844
Pinault-Printemps-Redoute SA (A)(B)		20			1,277
Schneider Electric SA (B)		19			1,415
Societe Generale (B)		45			2,263
Technip-Coflexip (A)(B)		57			1,756
TOTAL S.A. (B)		95			5,223
VINCI (B)		89			3,736
					19,063
Germany - 10.26%
BASF Aktiengesellschaft (A)(B)		23			887
Bayer Aktiengesellschaft (B)		71			4,133
E.ON AG (B)		106			4,101
elexis AG (B)		2			24
K+S Aktiengesellschaft (B)		18			1,011
Siemens AG (B)		41			3,078
Vossloh AG (B)		20			2,244
					15,478
Hong Kong - 2.09%
Cheung Kong (Holdings) Limited (B)		162			1,545
China Mobile (Hong Kong) Limited, ADR		32			1,602
					3,147
Italy - 2.53%
Banca Intesa S.p.A. (B)		513			1,865
DiaSorin S.p.A. (B)(C)		12			244
Saipem S.p.A. (B)		100			1,706
					3,815
Japan - 12.48%
Canon Inc. (B)		31			982
Central Japan Railway Company (B)		---	*		1,995
East Japan Railway Company (B)		33			2,508
Japan Tobacco Inc. (B)		1			2,981
Mitsubishi Electric Corporation (B)		360			2,256
Nintendo Co., Ltd. (B)		10			3,898
Shin-Etsu Chemical Co., Ltd. (B)		42			1,938
YAMADA-DENKI Co., Ltd. (A)(B)		33			2,272
					18,830
Netherlands - 3.53%
Heineken N.V. (B)		46			1,393
Koninklijke KPN N.V. (A)(B)		153			2,224
Koninklijke Philips Electronics N.V., Ordinary Shares (B)		86			1,712
					5,329
Spain - 1.42%
Telefonica, S.A. (B)		95			2,144

Sweden - 1.14%
H & M Hennes & Mauritz AB (B)		43			1,724

Switzerland - 12.93%
Credit Suisse Group, Registered Shares (A)(B)		60			1,682
Nestle S.A., Registered Shares (B)		145			5,739
Roche Holdings AG, Genussschein (B)		36			5,573
Syngenta AG (B)		14			2,681
TEMENOS Group AG (A)(B)		130			1,754
Zurich Financial Services, Registered Shares (B)		10			2,076
					19,505
United Kingdom - 15.47%
Anglo American plc (B)		24			574
BAE Systems plc (B)		505			2,789
British American Tobacco p.l.c. (B)		176			4,659
IG Group Holdings plc (B)(C)		272			1,036
Informa plc (B)		355			1,275
National Grid plc (B)		250			2,507
Prudential plc (B)		293			1,806
Reckitt Benckiser Group plc (B)		79			3,004
Serco Group plc (B)		252			1,673
Vodafone Group Plc (B)	1,930				4,010
					23,333
United States - 1.14%
Research In Motion Limited (A)		42			1,712

TOTAL COMMON STOCKS - 84.65%				$	127,674
(Cost: $149,267)

PREFERRED STOCKS - 2.30%
Germany
Fresenius AG (B)		60		$	3,465
(Cost: $3,508)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 7.49%
Air Products and Chemicals, Inc.,
0.050%, 1-2-09	$	1,693		1,693
American Honda Finance Corp.,
0.250%, 3-3-09		3,000		2,999
Campbell Soup Co.,
0.050%, 1-28-09		2,000		2,000
Eli Lilly and Company,
1.350%, 1-5-09		2,600		2,600
Toyota Motor Credit Corporation,
0.550%, 1-28-09		2,000		1,999
				11,291

Commercial Paper (backed by irrevocable bank letter of credit) - 5.56%
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)):
0.600%, 1-14-09		5,000		4,999
0.850%, 1-23-09		3,400		3,398
				8,397

TOTAL SHORT-TERM SECURITIES - 13.05%			$	19,688
(Cost: $19,688)

TOTAL INVESTMENT SECURITIES - 100.00%			$	150,827
(Cost: $172,463)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$11,030	$ ---
Level 2 - Other Significant Observable Inputs	137,289	225
Level 3 - Significant Unobservable Inputs	2,508	---
Total	$150,827	$225

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

	Investments	Other Financial Instruments+
Beginning balance 3-31-08	$ ---	$ ---
Net realized gain (loss)	---	---
Net change in unrealized appreciation (depreciation)	---	---
Net purchases (sales)	---	---
Transfers in and/or out of Level 3	2,508	---
Ending Balance 12-31-08	$2,508	$ ---
Net change in unrealized appreciation (depreciation) from investments still held as of 12-31-08	$(186)	$ ---

The following forward currency contracts were outstanding at December 31, 2008:

Type	Currency	Principal Amount Covered by Contract	Settlement Date	Unrealized Appreciation

Buy	Japanese Yen	282,000	2-12-09		$225

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

(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 liquid under guidelines established by the Board of Trustees. At December 31, 2008, the total value of these securities amounted to $3,636 or 2.41% of total investment securities.

Securities with an aggregate market value of $120,109, representing 79.63% of total investment securities, 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

The Investments of Ivy Managed European/Pacific Fund
December 31, 2008
(In Thousands)

AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy European Opportunities Fund, Class I	1,485		$	25,670
Ivy Pacific Opportunities Fund, Class I	2,034			18,161

TOTAL AFFILIATED MUTUAL FUNDS - 99.41%			$	43,831
(Cost: $86,411)

SHORT-TERM SECURITIES - 0.59%	Principal
Repurchase Agreements
J.P. Morgan Securities, Inc., Repurchase Agreement dated 12-31-08 to be repurchased at $262,
0.010%, 1-2-09 (A)		$262	$	262
(Cost: $262)

TOTAL INVESTMENT SECURITIES - 100.00%			$	44,093
(Cost: $86,673)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$43,831	$ ---
Level 2 - Other Significant Observable Inputs	262	---
Level 3 - Significant Unobservable Inputs	---	---
Total	$44,093	$ ---

(A)Collateralized by $192 United States Treasury Bond, 4.500% due 5-15-38; market value and accrued interest aggregate $264.

The Investments of Ivy Managed International Opportunities Fund
December 31, 2008
(In Thousands)

AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy European Opportunities Fund, Class I		740	$	12,789
Ivy International Balanced Fund, Class I		4,078		43,148
Ivy International Core Equity Fund, Class I		1,870		19,314
Ivy International Growth Fund, Class I		630		14,269
Ivy Pacific Opportunities Fund, Class I		1,016		9,075

TOTAL AFFILIATED MUTUAL FUNDS - 99.59%			$	98,595
(Cost: $161,604)

SHORT-TERM SECURITIES - 0.41%	Principal
Repurchase Agreements
J.P. Morgan Securities, Inc., Repurchase Agreement dated 12-31-08 to be repurchased at $407,
0.010%, 1-2-09 (A)	$	407	$	407
(Cost: $407)

TOTAL INVESTMENT SECURITIES - 100.00%			$	99,002
(Cost: $162,011)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$98,595	$ ---
Level 2 - Other Significant Observable Inputs	407	- ---
Level 3 - Significant Unobservable Inputs	- ---	- ---
Total	$99,002	$ ---

(A)Collateralized by $298 United States Treasury Note, 4.500% due 5-15-38; market value and accrued interest aggregate $410.

The Investments of Ivy Mortgage Securities Fund
December 31, 2008
(In Thousands)

CORPORATE DEBT SECURITIES	Principal		Value
Car Loan - 0.86%
Capital Auto Receivables Asset Trust 2006-1,
7.160%, 1-15-13 (A)	$	1,140	$	994
Capital Auto Receivables Asset Trust 2007-2,
8.300%, 2-18-14 (B)		1,105		750
				1,744
Other Mortgage-Backed Securities - 39.15%
Aames Mortgage Trust 2001-4,
6.650%, 1-25-32 (C)		386		328
ABFS Mortgage Loan Trust 2001-2,
6.990%, 12-25-31 (C)		843		436
ABFS Mortgage Loan Trust 2002-4,
7.423%, 12-15-33 (C)		1,348		779
Asset Securitization Corporation,
7.425%, 2-14-43 (C)		1,430		576
Asset Securitization Corporation (Interest Only): (C)(D)
1.581%, 10-13-26 (B)		3,808		85
8.621%, 8-13-29		1,134		209
Associates Manufactured Housing Contract Pass-Through Certificates,
7.900%, 3-15-27		488		494
Banc of America Alternative Loan Trust 2004-11,
6.000%, 12-25-34		997		727
Banc of America Alternative Loan Trust 2005-10,
5.669%, 11-25-35 (C)		1,128		47
Banc of America Alternative Loan Trust 2005-12,
5.806%, 1-25-36 (C)		1,591		90
Banc of America Alternative Loan Trust 2005-6,
6.000%, 7-25-35		790		537
Banc of America Alternative Loan Trust 2005-8: (C)
5.582%, 9-25-35		1,983		286
5.582%, 9-25-35		394		23
Banc of America Alternative Loan Trust 2006-4: (C)
6.223%, 5-25-46		629		123
6.223%, 5-25-46		878		54
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2002-2:
6.200%, 7-11-43 (B)		1,200		615
4.772%, 7-11-43		456		439
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2003-1,
4.900%, 9-11-36 (B)		1,000		427
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2003-2,
4.342%, 3-11-41		929		896
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2004-6,
5.104%, 12-10-42 (B)(C)		800		250
Banc of America Funding 2004-2 Trust,
6.500%, 7-20-32		1,172		997
Banc of America Funding Corporation,
5.013%, 9-20-34 (C)		1,122		673
Banc of America Mortgage 2007-1 Trust,
6.000%, 3-25-37		3,556		657
Banc of America Mortgage Alternative Loan Trust 2003-5,
5.500%, 7-25-33		1,235		415
Banc of America Mortgage Trust 2003-9,
5.500%, 12-25-33		798		285
Banc of America Mortgage Trust 2004-1,
5.500%, 2-25-34		1,910		1,354
Banc of America Mortgage Trust 2004-2:
5.000%, 3-25-19		272		214
5.000%, 3-25-19		212		145
5.500%, 3-25-34		471		341
Banc of America Mortgage Trust 2004-3:
4.875%, 4-25-19		367		252
4.875%, 4-25-19		197		119
Banc of America Mortgage Trust 2004-7,
5.750%, 8-25-34		957		752
Banc of America Structured Securities Trust 2002-X1 F,
6.274%, 10-11-33 (A)		1,750		1,416
BankAmerica Manufactured Housing Contract Trust:
7.800%, 10-10-26		1,392		1,395
7.015%, 1-10-28		578		548
Bear Stearns Commercial Mortgage Securities Inc., Series 2000-WF1 Trust Fund,
6.500%, 2-15-32		1,015		656
Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6,
6.000%, 10-15-36 (B)		938		251
BlackRock Capital Finance,
7.750%, 9-25-26 (B)		506		190
C-Bass 2005-CB3 Trust,
5.109%, 12-25-34 (C)		1,233		1,206
C-Bass 2006-MH1 Trust,
5.970%, 10-25-36 (B)(C)		1,374		899
C-Bass Mortgage Loan Trust 2007-CB2,
5.891%, 2-25-37 (C)		252		231
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35 (C)		2,301		1,709
CHEQ Home Equity Loan Trust, Series 2006-S2,
1.505%, 7-25-27 (C)		331		312
CHL Mortgage Pass-Through Trust 2002-32,
5.542%, 1-25-33 (A)(C)		1,222		764
CHL Mortgage Pass-Through Trust 2003-28,
4.150%, 8-25-33		1,500		1,337
CHL Mortgage Pass-Through Trust 2003-HYB2,
3.948%, 7-19-33 (C)		1,634		1,316
Citicorp Residential Mortgage Trust Series 2006-2,
5.872%, 9-25-36 (C)		49		49
CitiMortgage Alternative Loan Trust, Series 2007-A7,
6.238%, 7-25-37 (C)		638		36
Collateralized Mortgage Obligation Trust,
5.000%, 7-1-18		27		27
COMM 2006-CNL2,
5.570%, 2-5-19 (B)(C)		925		355
Commercial Mortgage Asset Trust,
7.800%, 11-17-32 (C)		1,000		983
Commercial Mortgage Asset Trust, Commercial Mortgage Pass-Through Certificates, Series 1999-C1,
6.640%, 1-17-32		330		329
Conseco Finance Securitizations Corp.,
6.981%, 6-15-32		590		584
CountryPlace Manufactured Housing Contract Trust 2005-1,
4.800%, 12-15-35 (A)(C)		1,275		851
Countrywide Home Loans, Inc. Asset-Backed Certificates, Series 2005-10,
4.915%, 2-25-36 (C)		4,959		4,333
CSFB Commercial Mortgage Trust 2003-C4,
5.322%, 8-15-36 (B)(C)		1,000		216
CWHEQ Home Equity Loan Trust, Series 2006-S3,
6.518%, 1-25-29 (C)		2,135		385
FFCA Secured Lending Corporation: (A)(C)
1.984%, 2-18-22		1,500		1,440
2.234%, 2-18-22		1,000		948
First Horizon Mortgage Pass-Through Trust 2003-8,
5.134%, 10-25-33 (C)		354		80
First Horizon Mortgage Pass-Through Trust 2007-4,
5.500%, 8-25-22		1,021		950
Flagstar Home Equity Loan Trust 2007-1,
5.997%, 1-25-35 (B)(C)		1,630		550
Ford Credit Auto Owner Trust 2006-B,
7.120%, 2-15-13 (A)		635		409
Ford Credit Auto Owner Trust 2007-A,
7.050%, 12-15-13 (A)		390		241
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage Securitization 2005-A LLC:
5.250%, 4-25-32		710		591
5.397%, 4-25-32 (C)		1,104		486
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC:
5.250%, 11-25-32 (A)		968		742
5.250%, 11-25-32 (A)		451		397
GMAC Commercial Mortgage Securities,
5.940%, 7-1-13 (A)		65		59
Green Tree Financial Corporation:
7.650%, 4-15-19		492		429
8.300%, 11-15-19		351		320
9.100%, 4-15-25		1,075		1,031
9.000%, 6-15-25		1,052		1,008
Home Equity Loan Trust 2003-HS2,
5.090%, 7-25-33 (C)		68		60
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38 (A)		1,963		718
Impac CMB Trust Series 2003-2F,
6.000%, 1-25-33 (C)		763		391
J.P. Morgan Alternative Loan Trust 2006-A6,
5.950%, 11-25-36 (C)		2,500		1,044
J.P. Morgan Chase Commercial Mortgage Securities Corp.,
6.221%, 10-12-37 (B)		2,300		1,329
J.P. Morgan Chase Commercial Mortgage Securities Corp. Series 2004-CIBC8,
3.837%, 1-12-39		850		790
J.P. Morgan Mortgage Acquisition Trust 2006-CW2,
6.337%, 8-25-36 (C)		2,725		874
J.P. Morgan Mortgage Trust 2004-A3,
4.289%, 7-25-34 (C)		1,201		821
J.P. Morgan Mortgage Trust 2005-S2:
5.672%, 9-25-35 (C)		2,169		415
6.500%, 9-25-35		2,027		1,294
J.P. Morgan Mortgage Trust 2006-A2:
5.138%, 11-25-33 (C)		954		431
4.544%, 8-25-34 (C)		2,066		874
J.P. Morgan Mortgage Trust 2006-A6,
6.041%, 10-25-36 (C)		2,510		1,154
J.P. Morgan Mortgage Trust 2006-S3,
6.187%, 8-25-36		1,170		158
J.P. Morgan Mortgage Trust 2007-A1,
4.813%, 7-25-35 (C)		2,165		572
J.P. Morgan Mortgage Trust 2007-A2,
5.688%, 4-25-37 (C)		2,613		1,955
LB-UBS Commercial Mortgage Trust 2003-C3,
4.846%, 2-15-37 (B)(C)		300		122
Lehman Mortgage Trust Mortgage Pass-Through Certificates, Series 2006-5,
6.881%, 9-25-36 (C)		1,989		151
Lehman XS Trust, Series 2005-8,
5.690%, 12-25-35		3,048		2,111
Mid-State Capital Corporation 2004-1 Trust:
6.005%, 8-15-37		346		292
6.497%, 8-15-37		1,089		792
Morgan Stanley Capital I Trust 2003-IQ5,
5.975%, 4-15-38 (B)(C)		2,348		719
Morgan Stanley Dean Witter Capital I Inc. Trust 2002-WL1,
6.397%, 4-25-17 (C)		210		180
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4: (A)(C)
5.880%, 11-28-35		680		54
5.880%, 11-28-35		340		31
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4 (Interest Only),
1.146%, 11-28-35 (A)(C)(D)	18,682			217
Multi Security Asset Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-RR4,
5.000%, 11-28-35 (A)		2,000		1,200
NationsLink Funding Corporation, Commercial Mortgage Pass-Through Certificates, Series 1998-2,
5.000%, 8-20-30 (B)		1,000		819
Oakwood Mortgage Investors, Inc.:
8.100%, 10-15-21 (A)		138		130
7.375%, 8-15-27		137		129
Office Portfolio Trust, Commercial Mortgage Pass-Through Certificates, Series 2001-HRPT,
6.778%, 2-3-16 (B)		700		410
Origen Manufactured Housing Contract Trust 2004-A,
5.700%, 1-15-35		543		383
Origen Manufactured Housing Contract Trust 2004-B,
4.750%, 8-15-21		400		351
Origen Manufactured Housing Contract Trust 2005-A,
4.970%, 10-15-21		935		804
Origen Manufactured Housing Contract Trust 2005-B:
5.605%, 5-15-22		360		294
5.910%, 1-15-37		700		485
PHH Alternative Mortgage Trust, Series 2007-1, Class II-B-2,
6.000%, 2-25-37		1,539		112
Prudential Home Mortgage Securities: (C)
6.730%, 4-28-24 (A)		3		2
8.030%, 9-28-24 (B)		13		10
RALI Series 2003-QS11 Trust,
5.750%, 6-25-33		2,410		1,754
RAMP Series 2005-RS1 Trust,
5.145%, 1-25-35 (C)		1,013		399
RASC Series 2003-KS10 Trust,
6.410%, 12-25-33		267		106
RBSGC Mortgage Loan Trust 2007-B,
5.450%, 7-25-35 (C)		2,824		2,330
RESI Finance Limited Partnership 2003-C and RESI Finance DE Corporation 2003-C,
3.225%, 9-10-35 (A)(C)		1,387		607
RFMSI Series 2004-S5 Trust:
4.500%, 5-25-19		307		241
4.500%, 5-25-19		153		106
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1,
7.750%, 12-25-30 (C)		1,037		1,062
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21,
5.400%, 11-25-35 (C)		1,575		435
Structured Asset Mortgage Investments, Inc.:
5.631%, 4-30-30 (C)		17		13
5.631%, 4-30-30 (C)		7		6
Structured Asset Securities Corporation:
6.290%, 11-25-32		221		109
5.250%, 8-25-33		1,283		1,073
5.250%, 8-25-33		559		389
5.630%, 5-25-34 (C)		732		492
6.000%, 6-25-34 (C)		2,029		1,393
Vanderbilt Mortgage and Finance, Inc.,
7.955%, 12-7-24 (C)		415		400
Wachovia Bank Commercial Mortgage Trust (The),
4.942%, 11-15-34 (B)		964		290
Washington Mutual MSC Mortgage Pass-Through Certificates Series 2002-MS11 Trust,
5.617%, 12-25-32 (C)		874		392
Wells Fargo Alternative Loan 2007-PA3 Trust:
5.750%, 7-25-37		1,079		290
6.176%, 7-25-37 (C)		1,769		99
6.176%, 7-25-37 (C)		1,552		50
Wells Fargo Mortgage Backed Securities 2003-2 Trust,
5.250%, 2-25-18 (A)		235		154
Wells Fargo Mortgage Backed Securities 2003-4 Trust,
5.500%, 6-25-33		907		175
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.250%, 8-25-33 (B)		1,099		455
Wells Fargo Mortgage Backed Securities 2005-16 Trust,
5.750%, 1-25-36		500		401
				79,583
Other Non-Agency REMIC/CMO - 0.17%
Banco Hipotecario Nacional: (A)
7.916%, 7-25-09		23		--*
1.921%, 3-25-11 (C)		10		--*
7.540%, 5-31-17		--		--*
Bear Stearns Mortgage Securities Inc.,
8.000%, 11-25-29		343		355
				355

TOTAL CORPORATE DEBT SECURITIES - 40.18%			$	81,682
(Cost: $145,571)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations - 0.21%
Federal Home Loan Bank,
3.625%, 12-17-10 (E)		400		418

Mortgage-Backed Obligations - 49.21%
Federal Home Loan Mortgage Corporation Adjustable Rate Participation Certificates,
13.096%, 3-15-09 (C)		22		22
Federal Home Loan Mortgage Corporation Agency REMIC/CMO,
5.000%, 6-15-31		2,000		2,033
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
5.500%, 12-1-17		541		560
6.000%, 5-1-18		125		130
5.500%, 9-1-19		881		910
3.500%, 2-15-30		1,451		1,430
6.500%, 9-1-32		927		975
5.300%, 1-15-33		206		212
5.000%, 7-15-33		2,064		2,017
5.500%, 5-1-34		1,064		1,096
5.500%, 5-1-34		674		694
6.500%, 5-1-34		686		714
5.500%, 10-1-34		874		898
5.500%, 1-1-35		4,000		4,094
5.000%, 5-15-35		2,196		2,174
5.000%, 8-1-35		813		832
5.500%, 10-1-35		1,362		1,398
5.000%, 12-1-35		727		744
5.000%, 12-1-35		3,380		3,454
6.500%, 7-1-36		873		907
7.000%, 12-1-37		715		742
6.500%, 1-1-38		237		246
Federal National Mortgage Association Adjustable Rate Pass-Through Certificates,
4.657%, 7-1-35 (C)		1,026		1,032
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.000%, 1-1-18		298		310
5.500%, 2-1-18		330		342
5.000%, 5-1-18		1,067		1,106
5.000%, 10-1-18		1,045		1,079
5.500%, 9-1-19		263		272
5.500%, 2-1-24		425		438
6.000%, 8-1-29		353		365
7.000%, 11-1-31		159		169
6.500%, 2-1-32		157		166
6.500%, 2-1-32		119		125
6.500%, 2-1-32		103		109
7.000%, 2-1-32		216		229
7.000%, 3-1-32		286		303
6.500%, 4-1-32		64		67
6.500%, 5-1-32		113		118
6.500%, 5-1-32		71		74
6.500%, 7-1-32		556		585
6.000%, 9-1-32		127		131
6.500%, 9-1-32		64		67
6.000%, 10-1-32		840		872
6.000%, 10-1-32		821		853
6.500%, 10-1-32		54		56
6.000%, 11-1-32		655		680
6.000%, 11-1-32		393		408
6.000%, 3-1-33		975		1,012
6.000%, 3-1-33		766		796
6.000%, 3-1-33		212		220
5.500%, 4-1-33		1,527		1,574
5.500%, 5-1-33		481		494
5.500%, 5-1-33		245		253
6.000%, 6-1-33		1,605		1,657
6.000%, 6-1-33		625		645
6.500%, 8-1-33		42		44
6.000%, 10-1-33		233		242
5.000%, 11-1-33		1,538		1,574
6.000%, 12-1-33		445		462
5.500%, 1-1-34		753		774
5.500%, 1-1-34		588		604
6.000%, 1-1-34		2,995		3,083
5.000%, 3-1-34		863		884
5.000%, 3-1-34		374		383
5.500%, 3-1-34		1,954		2,016
5.500%, 4-1-34		1,707		1,761
5.500%, 4-1-34		540		554
5.000%, 5-1-34		169		173
5.500%, 7-1-34		1,547		1,595
6.000%, 8-1-34		549		567
5.500%, 9-1-34		1,013		1,042
6.000%, 9-1-34		680		702
6.500%, 9-1-34		794		827
5.500%, 11-1-34		608		626
6.000%, 11-1-34		281		290
6.500%, 11-1-34		56		59
5.500%, 1-1-35		4,059		4,160
5.500%, 1-1-35		490		503
4.500%, 2-1-35		422		429
5.500%, 2-1-35		2,096		2,156
6.500%, 3-1-35		976		1,018
6.000%, 4-1-35		1,375		1,417
5.000%, 7-1-35		709		725
5.500%, 7-1-35		661		678
5.500%, 9-1-35		348		357
5.500%, 10-1-35		1,372		1,414
5.500%, 10-1-35		796		820
5.500%, 2-1-36		1,422		1,430
6.500%, 2-1-36		601		628
6.500%, 6-1-36		1,064		1,107
6.000%, 8-1-36		1,838		1,894
6.000%, 11-1-36		1,830		1,886
5.000%, 1-1-37		3,620		3,696
6.500%, 1-1-37		550		571
6.000%, 5-1-37		880		907
5.500%, 6-1-37		264		271
6.500%, 8-1-37		1,732		1,801
6.500%, 9-1-37		1,598		1,661
6.000%, 9-1-37		94		97
7.000%, 10-1-37		267		280
7.000%, 10-1-37		213		224
5.500%, 3-1-38		225		231
Government National Mortgage Association Agency REMIC/CMO (Interest Only): (C)(D)
0.916%, 3-16-34		6,601		221
0.745%, 7-16-40		3,120		94
0.145%, 3-16-42	11,676			70
0.944%, 6-17-45	18,092			822
Government National Mortgage Association Fixed Pass-Through Certificates,
5.000%, 1-15-35		1,471		1,512
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
7.875%, 5-15-17		566		581
6.250%, 7-15-24		215		225
5.000%, 7-15-33		837		862
5.000%, 7-15-34		742		763
5.500%, 12-15-34		839		867
5.500%, 12-15-34		496		512
5.000%, 12-15-35		1,680		1,727
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, 1995-1 Class 1,
7.212%, 2-15-25 (C)		197		207
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, 1995-1 Class 2,
7.793%, 2-15-25		60		64
				100,039

TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 49.42%			$	100,457
(Cost: $99,408)

UNITED STATES GOVERNMENT OBLIGATIONS -0.27%
Treasury Obligations
United States Treasury Notes,
4.500%, 3-31-12 (E)		500	$	553
(Cost: $515)

SHORT-TERM SECURITIES
Commercial Paper
Air Products and Chemicals, Inc.,
0.050%, 1-2-09		994		994
AT&T Inc.,
0.180%, 2-12-09		5,000		4,999
Campbell Soup Co.,
0.050%, 1-28-09		2,000		2,000
Caterpillar Inc.,
0.160%, 1-26-09		5,000		4,999
ITT Corporation,
2.000%, 1-5-09		600		600
Praxair Inc.,
0.120%, 2-17-09		3,000		3,000
Toyota Motor Credit Corporation,
0.550%, 1-28-09		4,000		3,998

TOTAL SHORT-TERM SECURITIES - 10.13%			$	20,590
(Cost: $20,590)

TOTAL INVESTMENT SECURITIES - 100.00%			$	203,282
(Cost: $266,084)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$ ---	$(33,943)
Level 2 - Other Significant Observable Inputs	200,073	---
Level 3 - Significant Unobservable Inputs	3,209	---
Total	$203,282	$(33,943)

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

	Investments	Other Financial Instruments+
Beginning balance 3-31-08	$3,765	$ ---
Net realized gain (loss)	1	---
Net change in unrealized appreciation (depreciation)*	(1,121)	---
Net purchases (sales)	(233)	---
Transfers in and/or out of Level 3	797	---
Ending Balance 12-31-08	$3,209	$ ---
Net change in unrealized appreciation (depreciation) from investments still held as of 12-31-08	$(1,840)	$ ---

*Net change in unrealized appreciation (depreciation) includes $6 from change in accrued amortization.

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

(C)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2008.

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

(E)Securities serve as collateral for the following open futures contracts at December 31, 2008:

Description	Type	Expiration Date	Number of Contracts	Market Value			Unrealized Depreciation

U.S. 10 Year Treasury Note	Short	3-20-09	(74)		$	(9,306)		$	(620)
U.S. 30 Year Treasury Bond	Short	3-31-09	(125)			(17,256)			(1,498)
U.S. 5 Year Treasury Note	Short	3-31-09	(62)			(7,381)			(249)

					$	(33,943)		$	(2,367)

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

The Investments of Ivy Pacific Opportunities Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares			Value
Australia - 1.39%
Rio Tinto Ltd (A)(B)		153		$	4,191

Bermuda - 1.13%
Esprit Holdings Limited (B)		600			3,419

Cayman Islands - 1.82%
Agria Corporation, ADR (A)		25			37
China Distance Education Holdings Limited, ADR (A)		325			1,293
CNinsure Inc., ADR (A)		188			1,627
Greentown China Holdings Limited (A)(B)		6,000			2,528
					5,485
China - 41.59%
Agile Property Holdings Limited (B)		8,798			4,646
China BlueChemical Ltd., H Shares (B)		11,274			4,656
China CITIC Bank Corporation Limited, H Shares (A)(B)		13,824			4,783
China Life Insurance Company Limited, H Shares (A)(B)		2,094			6,434
China Merchants Bank Co., Limited, H Shares (B)(C)		2,000			3,742
China Merchants Bank Co., Limited, H Shares (B)		1,550			2,900
China Oilfield Services Limited (B)		10,696			8,733
China Petroleum & Chemical Corporation, ADR		50			3,089
China Railway Construction Corporation Limited, H Shares (A)(B)(C)		3,000			4,491
China Resources Power Holdings Company Limited (B)		4,086			7,944
China Shenhua Energy Company Limited, H Shares (B)(C)		1,200			2,573
China South Locomotive & Rolling Stock Corporation Limited, H Shares (A)(B)(C)		9,629			5,231
China Unicom Limited (A)(B)		5,000			6,080
China Yurun Food Group Limited (B)		4,901			5,797
ChinaEdu Corporation, ADR (A)		350			1,715
CNPC (Hong Kong) Limited (B)		12,310			3,857
COSCO Pacific Limited (B)		3,000			3,085
Ctrip.com International, Ltd.		100			2,380
Enerchina Holdings Limited (A)(B)		56,718			848
Heng Tai Consumables Group Limited (A)(B)		21,375			1,664
Honghua Group Limited (B)(C)		4,000			479
Industrial and Commercial Bank of China (Asia) Limited (A)(B)		14,947			7,936
KWG Property Holding Limited (B)		14,012			4,194
NetEase.com, Inc., ADR (A)		350			7,735
PetroChina Company Limited, H Shares (B)		6,470			5,750
REXCAPITAL Financial Holdings Limited (A)(B)		52,975			1,277
Simcere Pharmaceutical Group, ADR (A)		574			4,112
Tencent Holdings Limited (B)		500			3,249
Wah Sang Gas Holdings Limited (A)(B)		736			---	*
Yingli Green Energy Holding Company Limited, ADR (A)		277			1,687
Zhuzhou CSR Times Electric Co., Ltd., H Shares (B)		5,537			4,491
					125,558
Hong Kong - 7.85%
Beijing Enterprises Holdings Limited (B)		1,538			6,298
Cheung Kong (Holdings) Limited (B)		443			4,226
China Mobile (Hong Kong) Limited, ADR (D)		150			7,627
Melco International Development Limited (A)(B)		5,000			1,669
Pan Asia Environmental Protection Group Limited (B)(E)		13,372			1,736
Pou Sheng International (Holdings) Limited (A)(B)(C)		20,000			2,155
					23,711
India - 8.73%
Bharat Heavy Electricals Limited (B)		171			4,799
Bharti Airtel Limited (A)(B)		436			6,420
CESC Limited (B)(C)		450			2,211
Nagarjuna Construction Company Limited (B)		1,435			2,138
Reliance Industries Limited (B)		169			4,302
TATA POWER COMPANY LIMITED (THE) (B)		419			6,480
					26,350
Indonesia - 3.40%
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk		142			3,548
PT Astra International Tbk (B)		2,866			2,761
PT Bank Rakyat Indonesia (B)		9,513			3,965
					10,274
Malaysia - 2.88%
Gamuda Berhad (B)		6,355			3,491
Genting Berhad (B)		2,068			2,223
IOI Corporation Berhad (B)		---	*		---	*
LION DIVERSIFIED HOLDINGS BERHAD (B)		1,946			199
Sime Darby Berhad (B)		1,848			2,790
					8,703
Singapore - 5.57%
Cambridge Industrial Trust (B)(C)		9,500			1,825
Keppel Corporation Limited (B)		1,000			3,037
Keppel Land Limited (B)		1,742			2,070
SembCorp Industries Ltd (B)		1,424			2,323
Singapore Telecommunications Limited (B)		2,139			3,813
United Overseas Bank Limited (B)		414			3,741
					16,809
South Korea - 10.16%
ForHuman Co., Ltd. (A)(B)		201			1,384
KB Financial Group Inc. (A)(B)		230			6,154
KCC Corporation (B)		11			2,648
Korea Investment Holdings Co., Ltd. (A)(B)		98			1,906
Kyeryong Construction Industrial Co. Ltd (B)		103			1,336
NHN Corporation (A)(B)		48			5,083
Samsung C&T Corporation (B)		78			2,525
Samsung Electronics Co., Ltd. (B)		13			4,648
SK Corporation (B)		65			4,997
					30,681
Taiwan - 10.30%
Asustek Computer Inc. (A)(B)		1,628			1,837
Cathay Financial Holding Co., Ltd. (B)		4,613			5,198
First Commercial Bank Co., Ltd. (A)(B)		11,557			6,173
Fubon Financial Holding Co., Ltd. (B)		9,723			7,136
Hon Hai Precision Ind. Co., Ltd. (B)		293			578
MediaTek Incorporation (B)		1			5
Taiwan Cement Corporation (A)(B)		6,000			4,959
Taiwan Semiconductor Manufacturing Company Ltd. (B)		1,154			1,574
Yuanta Financial Holdings Co., Ltd. (A)(B)		8,000			3,642
					31,102
Thailand - 1.26%
Advanced Info Service Public Company Limited (B)		962			2,219
PTT Public Company Limited (B)		315			1,585
					3,804
United States - 1.09%
Sohu.com Inc. (A)		70			3,295

TOTAL COMMON STOCKS - 97.17%				$	293,382
(Cost: $420,077)

INVESTMENT FUNDS - 0.54%
Vietnam - 0.54%
Vietnam Azalea Fund Limited (A)(F)(G)		500		$	1,615
(Cost: $2,900)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Air Products and Chemicals, Inc.,
0.050%, 1-2-09		$1,424			1,424
Campbell Soup Co.,
0.050%, 1-28-09		2,000			2,000
PepsiCo, Inc.,
0.100%, 1-28-09		3,500			3,500

TOTAL SHORT-TERM SECURITIES - 2.29%				$	6,924
(Cost: $6,924)

TOTAL INVESTMENT SECURITIES - 100.00%				$	301,921
(Cost: $429,901)

Notes to Schedule of Investments

The Fund has adopted 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 the 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 participan ts 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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$51,116	$(503)
Level 2 - Other Significant Observable Inputs	249,190	1,428
Level 3 - Significant Unobservable Inputs	1,615	(1,982)
Total	$301,921	$(1,057)

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

	Investments	Other Financial Instruments+
Beginning balance 3-31-08	$1,987	$ ---
Net realized gain (loss)	- ---	- ---
Net change in unrealized appreciation (depreciation)	(1,122)	(15)
Net purchases (sales)	750	(1,967)
Transfers in and/or out of Level 3	- ---	- ---
Ending Balance 12-31-08	$1,615	$(1,982)

Net change in unrealized appreciation (depreciation) from investments still held as of 12-31-08	$(1,122)	$ (15)

The following forward currency contracts were outstanding at December 31, 2008:

Type	Currency	Principal Amount Covered by Contract		Settlement Date	Unrealized Appreciation

Buy	New Taiwan Dollar		393,000	10-30-09		$	154
Buy	South Korean Won		38,100,000	1-20-09			1,274
						$	1,428
*Not shown due to rounding as amount is less than 500.

(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 liquid under guidelines established by the Board of Trustees. At December 31, 2008, the total value of these securities amounted to $22,707 or 7.52% of total investment securities.

(D)Securities serve as cover for the following written options outstanding at December 31, 2008:

Underlying Security	Contracts Subject to Call		Expiration Month/ Exercise Price	Premium Received			Market Value

China Life Insurance Company Limited:		3,100	March/27.0		$	533		$	682
China Mobile (Hong Kong) Limited, ADR:		2	March/60.0			251			248
Industrial and Commerical Bank of China:		16,700	March/5.0			482			334
					$	1,266		$	1,264

Underlying Security	Contracts Subject to Put		Expiration Month/ Exercise Price	Premium Received			Market Value

China Life Insurance Company Limited:		3,100	March/18.0		$	493		$	465
China Mobile (Hong Kong) Limited, ADR:		2	March/40.0			340			255
Industrial and Commerical Bank of China:		16,700	March/3.3			459			501
					$	1,292		$	1,221

(E)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 have been determined to be illiquid under guidelines established by the Board of Trustees. At December 31, 2008, the total value of this security amounted to $1,736 or 0.57% of total investment securities.

(F)Illiquid restricted security.At December 31, 2008, the following restricted security was owned:

	Security	Acquisition Date	Shares	Cost	Market Value

	Vietnam Azalea Fund Limited	6-14-07	500	$2,900		$	1,615


The total value of this security represented approximately 0.53% of net assets at December 31, 2008.

(G)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 December 31, 2008.

Securities with an aggregate market value of $242,266, representing 80.24% of total investment securities, 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

The Investments of Ivy Real Estate Securities Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares		Value
Diversified REITs - 9.85%
Liberty Property Trust		87	$	1,991
PS Business Parks, Inc.		77		3,425
Vornado Realty Trust		236		14,243
Washington Real Estate Investment Trust		195		5,521
				25,180
Health Care Facilities - 0.23%
Sun Healthcare Group, Inc. (A)		66		582

Hotels, Resorts & Cruise Lines - 0.15%
Marriott International, Inc., Class A		20		393

Industrial REITs - 4.98%
AMB Property Corporation		92		2,152
EastGroup Properties, Inc.		79		2,804
ProLogis		560		7,777
				12,733
Office REITs - 16.64%
Alexandria Real Estate Equities, Inc.		55		3,325
Boston Properties, Inc.		198		10,868
Corporate Office Properties Trust		195		5,998
Cousins Properties Incorporated		137		1,893
Digital Realty Trust, Inc.		219		7,194
Douglas Emmett, Inc.		382		4,996
Highwoods Properties, Inc.		28		752
Kilroy Realty Corporation		165		5,510
SL Green Realty Corp.		78		2,018
				42,554
Real Estate Management & Development - 0.74%
Brookfield Properties Corporation		141		1,092
CB Richard Ellis Group, Inc., Class A (A)		186		802
				1,894
Residential REITs - 16.28%
American Campus Communities, Inc.		94		1,923
AvalonBay Communities, Inc.		124		7,482
BRE Properties, Inc., Class A		141		3,953
Camden Property Trust		64		2,018
Equity Residential		395		11,770
Essex Property Trust, Inc.		106		8,128
Home Properties, Inc.		45		1,807
Mid-America Apartment Communities, Inc.		92		3,430
UDR, Inc.		80		1,099
				41,610
Retail REITs - 22.86%
Acadia Realty Trust		188		2,677
Federal Realty Investment Trust		104		6,444
General Growth Properties, Inc.		439		566
Kimco Realty Corporation		392		7,173
Kite Realty Group Trust		144		801
Macerich Company (The)		194		3,516
National Retail Properties, Inc.		175		3,008
Regency Centers Corporation		134		6,253
Saul Centers, Inc.		66		2,603
Simon Property Group, Inc.		363		19,308
Tanger Factory Outlet Centers, Inc.		79		2,976
Taubman Centers, Inc.		122		3,106
				58,431
Specialized REITs - 22.65%
Cogdell Spencer Inc.		81		757
Entertainment Properties Trust		28		840
Health Care Property Investors, Inc.		404		11,219
Health Care REIT, Inc.		168		7,069
Healthcare Realty Trust Incorporated		110		2,580
Hersha Hospitality Trust		307		922
Host Hotels & Resorts, Inc.		429		3,249
LaSalle Hotel Properties		122		1,344
Nationwide Health Properties, Inc.		170		4,888
Public Storage, Inc.		202		16,051
Ventas, Inc.		267		8,976
				57,895
Wireless Telecommunication Service - 0.45%
American Tower Corporation, Class A (A)		40		1,158

TOTAL COMMON STOCKS - 94.83%			$	242,430
(Cost: $321,745)

INVESTMENT FUNDS - 0.26%
Sector Fund-Real Estate
ProShares UltraShort Real Estate		13	$	654
(Cost: $872)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Air Products and Chemicals, Inc.,
0.050%, 1-2-09	$	843		843
Campbell Soup Co.,
0.050%, 1-28-09		2,000		2,000
Hershey Company (The),
0.150%, 1-28-09		4,000		4,000
Hewlett-Packard Company,
0.300%, 1-27-09		5,000		4,999
ITT Corporation,
2.000%, 1-5-09		711		711

TOTAL SHORT-TERM SECURITIES - 4.91%			$	12,553
(Cost: $12,553)

TOTAL INVESTMENT SECURITIES - 100.00%			$	255,637
(Cost: $335,170)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$243,085	$ ---
Level 2 - Other Significant Observable Inputs	12,552	- ---
Level 3 - Significant Unobservable Inputs	- ---	- ---
Total	$255,637	$ ---

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

The Investments of Ivy Small Cap Value Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares		Value
Aerospace & Defense - 0.55%
Orbital Sciences Corporation (A)		39	$	758

Airlines - 2.75%
Continental Airlines, Inc., Class B (A)		91		1,643
Delta Air Lines, Inc. (A)		186		2,128
				3,771
Alternative Carriers - 1.47%
tw telecom inc. (A)		238		2,014

Apparel Retail - 0.77%
Finish Line, Inc. (The), Class A		190		1,062

Apparel, Accessories & Luxury Goods - 0.77%
Warnaco Group, Inc. (The) (A)		54		1,060

Application Software - 1.18%
Lawson Software, Inc. (A)		137		650
TIBCO Software Inc. (A)		186		966
				1,616
Asset Management & Custody Banks - 1.49%
Affiliated Managers Group, Inc. (A)		49		2,037

Automotive Retail - 1.60%
Monro Muffler Brake, Inc.		86		2,190

Casinos & Gaming - 1.24%
Pinnacle Entertainment, Inc. (A)		222		1,707

Communications Equipment - 1.25%
Avocent Corporation (A)		57		1,017
Polycom, Inc. (A)		51		691
				1,708
Data Processing & Outsourced Services - 0.21%
Euronet Worldwide, Inc. (A)		25		291

Diversified Chemicals - 0.71%
Solutia Inc. (A)		216		970

Education Services - 1.57%
Corinthian Colleges, Inc. (A)		132		2,154

Electric Utilities - 3.59%
Cleco Corporation		62		1,420
NV Energy, Inc.		134		1,328
UIL Holdings Corporation		51		1,526
Unitil Corporation		31		648
				4,922
Food Retail - 3.82%
Casey's General Stores, Inc.		68		1,553
Ruddick Corporation (B)		133		3,679
				5,232
Gas Utilities - 1.46%
Southwest Gas Corporation		79		2,002

General Merchandise Stores - 1.03%
Fred's Inc., Class A		131		1,414

Health Care Distributors - 0.70%
Kindred Healthcare, Inc. (A)		73		954

Health Care Facilities - 0.95%
AmSurg Corp. (A)		56		1,309

Homebuilding - 3.88%
M.D.C. Holdings, Inc.		47		1,421
Pulte Homes, Inc.		178		1,940
Ryland Group, Inc. (The)		111		1,953
				5,314
Human Resource & Employment Services - 1.93%
Resources Connection, Inc. (A)		67		1,098
Watson Wyatt & Company Holdings, Inc., Class A		32		1,549
				2,647
Hypermarkets & Super Centers - 2.37%
BJ's Wholesale Club, Inc. (A)(B)		95		3,251

Integrated Telecommunication Services - 0.58%
SureWest Communications		70		803

Internet Software & Services - 0.46%
SkillSoft Public Limited Company, ADR (A)		88		631

Investment Banking & Brokerage - 2.47%
KBW, Inc. (A)		66		1,518
Piper Jaffray Companies (A)		47		1,866
				3,384
IT Consulting & Other Services - 2.23%
CACI International Inc, Class A (A)		33		1,470
Forrester Research, Inc. (A)		56		1,582
				3,052
Leisure Products - 0.53%
LeapFrog Enterprises, Inc. (A)		207		723

Metal & Glass Containers - 3.77%
Pactiv Corporation (A)		81		2,010
Silgan Holdings Inc.		66		3,163
				5,173
Movies & Entertainment - 1.41%
Regal Entertainment Group		190		1,935

Office REITs - 1.00%
Digital Realty Trust, Inc.		42		1,367

Oil & Gas Exploration & Production - 2.08%
Cabot Oil & Gas Corporation		59		1,529
Comstock Resources, Inc. (A)		28		1,323
				2,852
Oil & Gas Storage & Transportation - 0.18%
MarkWest Energy Partners, L.P.		32		255

Regional Banks - 9.12%
Bank of the Ozarks, Inc.		14		424
First Financial Bankshares, Inc.		32		1,745
First Horizon National Corporation		117		1,234
First Midwest Bancorp, Inc.		55		1,098
Glacier Bancorp, Inc.		65		1,244
Home BancShares, Inc.		33		884
Pacific Continental Corporation		33		500
PacWest Bancorp		45		1,211
Sierra Bancorp		50		1,039
SVB Financial Group (A)		19		493
Texas Capital Bancshares, Inc. (A)		74		983
United Bankshares, Inc.		50		1,654
				12,509
Reinsurance - 4.77%
IPC Holdings, Ltd.		93		2,794
Platinum Underwriters Holdings, Ltd.		60		2,161
RenaissanceRe Holdings Ltd.		31		1,593
				6,548
Research & Consulting Services - 1.38%
Duff & Phelps Corporation, Class A (A)		99		1,889

Residential REITs - 1.39%
American Campus Communities, Inc.		93		1,901

Restaurants - 3.32%
AFC Enterprises, Inc. (A)		88		411
Cracker Barrel Old Country Store, Inc.		96		1,969
Jack in the Box Inc. (A)		98		2,169
				4,549
Security & Alarm Services - 2.11%
Brink's Company (The)		44		1,194
GEO Group, Inc. (The) (A)		94		1,698
				2,892
Semiconductor Equipment - 1.17%
Lam Research Corporation (A)		37		777
Verigy Ltd. (A)		86		822
				1,599
Semiconductors - 2.97%
Atmel Corporation (A)		453		1,419
NVIDIA Corporation (A)		166		1,341
PMC-Sierra, Inc. (A)		271		1,318
				4,078
Specialized REITs - 1.93%
Entertainment Properties Trust		42		1,251
LaSalle Hotel Properties		126		1,396
				2,647
Specialty Chemicals - 1.74%
Sensient Technologies Corporation		100		2,386

Systems Software - 1.36%
Sybase, Inc. (A)		75		1,868

Technology Distributors - 2.06%
Anixter International Inc. (A)		27		813
Arrow Electronics, Inc. (A)		54		1,012
Avnet, Inc. (A)		55		1,003
				2,828
Thrifts & Mortgage Finance - 1.69%
First Niagara Financial Group, Inc.		144		2,322

Trucking - 2.04%
Marten Transport, Ltd. (A)		89		1,678
Werner Enterprises, Inc.		65		1,123
				2,801

TOTAL COMMON STOCKS - 87.05%			$	119,375
(Cost: $131,866)

CALL OPTIONS - 0.53%	Number of Contracts
Philadelphia Stock Exchange Gold and Silver Sector Index,
Jun $122.50, Expires 6-22-09		---	*	$	729
(Cost: $846)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Air Products and Chemicals, Inc.,
0.050%, 1-2-09	$	1,000		1,000
Hershey Company (The),
0.150%, 1-28-09		2,000		2,000
Hewlett-Packard Company,
0.300%, 1-27-09		5,000		4,999
ITT Corporation,
2.000%, 1-5-09		1,405		1,405
PepsiCo, Inc.,
0.100%, 1-28-09		3,000		3,000
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)),
1.100%, 1-8-09		2,631		2,630
Sara Lee Corporation,
1.000%, 1-9-09		2,000		1,999


TOTAL SHORT-TERM SECURITIES - 12.42%			$	17,033
(Cost: $17,033)

TOTAL INVESTMENT SECURITIES - 100.00%			$	137,137
(Cost: $149,745)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$120,104	$(684)
Level 2 - Other Significant Observable Inputs	17,033	- ---
Level 3 - Significant Unobservable Inputs	- ---	- ---
Total	$137,137	$(684)

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

(B)Securities serve as cover for the following written options outstanding at December 31, 2008:

Underlying Security	Contracts Subject to Put	Expiration Month/ Exercise Price	Premium Received		Market Value

Philadelphia Stock Exchange Gold and Silver Sector Index:	---*	June/122.5		$775		$684

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

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

The Investments of Ivy Value Fund
December 31, 2008
(In Thousands)

COMMON STOCKS	Shares		Value
Aerospace & Defense - 3.86%
Lockheed Martin Corporation		10	$	849
Raytheon Company		19		985
				1,834
Airlines - 1.16%
Delta Air Lines, Inc. (A)		32		365
UAL Corporation (B)		17		186
				551
Asset Management & Custody Banks - 0.30%
Blackstone Group L.P. (The)		22		141

Brewers - 2.10%
Molson Coors Brewing Company, Class B		20		998

Communications Equipment - 1.92%
Nokia Corporation, Series A, ADR		59		912

Computer Hardware - 5.61%
Hewlett-Packard Company		48		1,742
International Business Machines Corporation		11		926
				2,668
Construction & Engineering - 0.29%
Chicago Bridge & Iron Company N.V., NY Shares		13		135

Consumer Finance - 2.43%
Capital One Financial Corporation (B)		36		1,154

Department Stores - 1.57%
Macy's Inc.		72		747

Diversified Chemicals - 0.58%
Solutia Inc. (A)		61		275

Environmental & Facilities Services - 1.88%
Waste Management, Inc.		27		895

Health Care Distributors - 6.98%
AmerisourceBergen Corporation		40		1,409
McKesson Corporation		49		1,905
				3,314
Home Improvement Retail - 1.28%
Home Depot, Inc. (The)		26		608

Industrial Machinery - 2.07%
Illinois Tool Works Inc. (B)		28		984

Integrated Oil & Gas - 12.84%
Chevron Corporation		34		2,500
Exxon Mobil Corporation		19		1,541
Marathon Oil Corporation		42		1,160
Occidental Petroleum Corporation		15		900
				6,101
Integrated Telecommunication Services - 4.54%
Verizon Communications Inc.		64		2,156

Managed Health Care - 2.53%
UnitedHealth Group Incorporated (B)		45		1,200

Metal & Glass Containers - 1.97%
Pactiv Corporation (A)		38		938

Mortgage REITs - 3.08%
Annaly Capital Management, Inc.		92		1,465

Multi-Utilities - 0.98%
Duke Energy Corporation		31		464

Office Electronics - 1.18%
Xerox Corporation		70		560

Oil & Gas Exploration & Production - 1.91%
Devon Energy Corporation		14		907

Oil & Gas Storage & Transportation - 4.75%
Atlas Pipeline Partners, L.P.		15		92
Boardwalk Pipeline Partners, LP		12		217
Energy Transfer Equity, L.P.		18		290
Energy Transfer Partners, L.P.		9		289
Enterprise Products Partners L.P.		49		1,012
MarkWest Energy Partners, L.P.		15		116
Regency Energy Partners LP		30		241
				2,257
Other Diversified Financial Services - 3.20%
Bank of America Corporation		30		425
J.P. Morgan Chase & Co. (B)		35		1,094
				1,519
Packaged Foods & Meats - 4.38%
General Mills, Inc. (B)		17		1,027
Kraft Foods Inc.		39		1,053
				2,080
Pharmaceuticals - 0.60%
Johnson & Johnson		5		287

Property & Casualty Insurance - 8.07%
ACE Limited		17		921
Allstate Corporation (The)		26		845
Travelers Companies, Inc. (The)		46		2,068
				3,834
Railroads - 2.54%
Union Pacific Corporation (B)		25		1,205

Regional Banks - 1.50%
SunTrust Banks, Inc.		8		230
Zions Bancorporation		20		483
				713
Reinsurance - 1.99%
Endurance Specialty Holdings Ltd.		15		443
Everest Re Group, Ltd.		6		434
RenaissanceRe Holdings Ltd.		1		67
				944
Restaurants - 0.61%
Jack in the Box Inc. (A)		13		291

Specialty Stores - 0.19%
Office Depot, Inc. (A)		29		88

Tobacco - 5.49%
Altria Group, Inc.		32		479
Lorillard, Inc.		16		879
Philip Morris International Inc.		29		1,253
				2,611

TOTAL COMMON STOCKS - 94.38%			$	44,836
(Cost: $50,607)

PREFERRED STOCKS- 0.92%
Diversified Metals & Mining
Freeport-McMoRan Copper & Gold Inc., 6.75% Cumulative Convertible		9	$	437
(Cost: $449)

SHORT-TERM SECURITIES	Principal
Commercial Paper
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
4.550%, 1-8-09	$	1,508		1,507
McCormick & Co. Inc.,
0.200%, 1-2-09		728		728

TOTAL SHORT-TERM SECURITIES - 4.70%			$	2,235
(Cost: $2,235)

TOTAL INVESTMENT SECURITIES - 100.00%			$	47,508
(Cost: $53,291)

Notes to Schedule of Investments

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 the Fund's own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund's investments by the above FAS 157 fair value hierarchy levels as of December 31, 2008.

	Investments	Other Financial Instruments+
Level 1 - Quoted Prices	$45,273	$(54)
Level 2 - Other Significant Observable Inputs	2,235	- ---
Level 3 - Significant Unobservable Inputs	- ---	(44)
Total	$47,508	$(98)

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

	Investments	Other Financial Instruments+
Beginning balance 3-31-08	$ ---	$ ---
Net realized gain (loss)	- ---	- ---
Net change in unrealized appreciation (depreciation)	- ---	(11)
Net purchases (sales)	- ---	(34)
Transfers in and/or out of Level 3	- ---	---
Ending Balance 12-31-08	$ ---	$(45)

Net change in unrealized appreciation (depreciation) from investments still held as of 12-31-08	$ ---	$(11)

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

(B)Securities serve as cover for the following written options outstanding at December 31, 2008:

Underlying Security	Contracts Subject to Call		Expiration Month/ Exercise Price	Premium Received			Market Value

General Mills, Inc.:		---*	January/60.0		$	44		$	28
Illinois Tool Works Inc.:		---*	March/40.0			8			5
J.P. Morgan Chase & Co.:		---*	March/37.5			14			8
UAL Corporation:		---*	March/22.5			14			6
Union Pacific Corporation:		---*	January/70.0			12			---	*
UnitedHealth Group Incorporated:		---*	February/30.0			34			45

					$	126		$	92


Underlying Security	Contracts Subject to Put		Expiration Month/ Exercise Price	Premium Received			Market Value

Molson Coors Brewing Company, Class B:		---*	January/50.0			$7			$6

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

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

ITEM 2. CONTROLS AND PROCEDURES.

(a)	The Registrant's Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant's management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

(b)	There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.


ITEM 3. EXHIBITS.


	A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).


Attached hereto as Exhibit 99.CERT.


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Ivy Funds
(Registrant)


By	/s/Mara D. Herrington
	Mara D. Herrington, Vice President and Secretary

Date:	February 26, 2009



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



By	/s/Henry J. Herrmann
	Henry J. Herrmann, Principal Executive Officer

Date:	February 26, 2009


By	/s/Joseph W. Kauten
	Joseph W. Kauten, Principal Financial Officer

Date:	February 26, 2009

Date: February 26, 2009	/s/Henry J. Herrmann
	Henry J. Herrmann, Principal Executive Officer