Ivy Funds Variable Insurance Portfolios
Supplement dated September 30, 2016 to the
Ivy Funds Variable Insurance Portfolios Statement of Additional Information
dated April 29, 2016
The following information supplements and supersedes any contrary information in the statement of additional information:
Investment Adviser Change
Ivy Investment Management Company (IICO), an affiliate of Waddell & Reed Investment Management Company (WRIMCO), has entered into investment management agreements to provide investment advisory services to each series (Portfolios) of the Ivy Funds Variable Insurance Portfolios (Trust) and WRIMCO has terminated its investment management agreements with the Trust. IICO also has entered into investment subadvisory agreements with Advantus Capital Management, Inc. (Advantus) with respect to certain Portfolios and WRIMCO has terminated its investment subadvisory agreements with Advantus.
The investment professionals of WRIMCO who previously provided services to the Portfolios under the investment management agreements will continue to provide the same services, except that they will provide those services in their capacities as investment professionals of IICO. There will be no change in the investment processes currently employed by any Portfolio, the nature or level of services provided to any Portfolio, or the fees any Portfolio pays under the investment management agreements. In addition, the services provided by Advantus to certain Portfolios will remain unchanged.
Effective immediately, all references to WRIMCO in the statement of additional information that refer to WRIMCO as the investment adviser to the Portfolios are replaced with IICO.
Name Change
Effective immediately, the name of Ivy Funds Variable Insurance Portfolios is changed to Ivy Variable Insurance Portfolios and the name of each Portfolio is changed as set forth below.
| Old Series Name |
New Series Name | |
| Ivy Funds VIP Core Equity |
Ivy VIP Core Equity | |
| Ivy Funds VIP Dividend Opportunities |
Ivy VIP Dividend Opportunities | |
| Ivy Funds VIP Growth |
Ivy VIP Growth | |
| Ivy Funds VIP Micro Cap Growth |
Ivy VIP Micro Cap Growth | |
| Ivy Funds VIP Mid Cap Growth |
Ivy VIP Mid Cap Growth | |
| Ivy Funds VIP Small Cap Growth |
Ivy VIP Small Cap Growth | |
| Ivy Funds VIP Small Cap Value |
Ivy VIP Small Cap Value | |
| Ivy Funds VIP Value |
Ivy VIP Value | |
| Ivy Funds VIP Bond |
Ivy VIP Bond | |
| Ivy Funds VIP Global Bond |
Ivy VIP Global Bond | |
| Ivy Funds VIP High Income |
Ivy VIP High Income | |
| Ivy Funds VIP Limited-Term Bond |
Ivy VIP Limited-Term Bond | |
| Ivy Funds VIP Global Growth |
Ivy VIP Global Growth | |
| Ivy Funds VIP International Core Equity |
Ivy VIP International Core Equity | |
| Ivy Funds VIP Asset Strategy |
Ivy VIP Asset Strategy | |
| Ivy Funds VIP Balanced |
Ivy VIP Balanced | |
| Ivy Funds VIP Energy |
Ivy VIP Energy | |
| Ivy Funds VIP Global Natural Resources |
Ivy VIP Global Natural Resources | |
| Ivy Funds VIP Real Estate Securities |
Ivy VIP Real Estate Securities | |
| Ivy Funds VIP Science and Technology |
Ivy VIP Science and Technology | |
| Ivy Funds VIP Money Market |
Ivy VIP Money Market | |
| Ivy Funds VIP Pathfinder Aggressive |
Ivy VIP Pathfinder Aggressive | |
| Ivy Funds VIP Pathfinder Moderately Aggressive |
Ivy VIP Pathfinder Moderately Aggressive | |
| Ivy Funds VIP Pathfinder Moderate |
Ivy VIP Pathfinder Moderate | |
| Ivy Funds VIP Pathfinder Moderately Conservative |
Ivy VIP Pathfinder Moderately Conservative | |
| Ivy Funds VIP Pathfinder Conservative |
Ivy VIP Pathfinder Conservative | |
| Ivy Funds VIP Pathfinder Moderate — Managed Volatility |
Ivy VIP Pathfinder Moderate — Managed Volatility |
| Supplement | Statement of Additional Information | 1 |
| Old Series Name |
New Series Name | |
| Ivy Funds VIP Pathfinder Moderately Aggressive — Managed Volatility |
Ivy VIP Pathfinder Moderately Aggressive — Managed Volatility | |
| Ivy Funds VIP Pathfinder Moderately Conservative — Managed Volatility |
Ivy VIP Pathfinder Moderately Conservative — Managed Volatility |
Distributor Change
Ivy Distributors, Inc. (IDI), an affiliate of Waddell & Reed, Inc. (W&R), has replaced W&R as principal underwriter and distributor for the Portfolios. Effective immediately, all references to W&R in the statement of additional information that refer to W&R as the principal underwriter and distributor for the Portfolios are replaced with IDI.
Other Changes
Effective August 1, 2016, Henry J. Herrmann retired as CEO of Waddell & Reed Financial, Inc. (WDR); and as President, CEO and Chairman of Waddell & Reed Investment Management Company (WRIMCO) and Ivy Investment Management Company (IICO); and was replaced in all such offices by Philip J. Sanders. Mr. Herrmann also resigned as a Director of IICO, WRIMCO, Waddell & Reed Services Company (WISC), W&R Capital Management Group, Inc., Ivy Distributors, Inc. and Waddell & Reed, Inc. and as President of each of the funds in the Fund Complex, and no longer serves as a member of management’s Valuation Committee. Information regarding Mr. Sanders is included below.
The following portfolio management changes are effective as of the dates listed below:
Effective August 1, 2016, Bradley M. Klapmeyer replaced Philip J. Sanders as one of the co-portfolio managers for Ivy VIP Growth. All references to Mr. Sanders and his portfolio management of Ivy VIP Growth in the SAI are deleted. Information regarding Mr. Klapmeyer as of August 31, 2016, is included below.
Effective October 1, 2016, Nathan A. Brown joins Kimberly A. Scott as a co-portfolio manager for Ivy VIP Mid Cap Growth. Information regarding Mr. Brown as of August 31, 2016, is included below.
Effective October 1, 2016, Michael T. Wolverton joins David P. Ginther as a co-portfolio manager for Ivy VIP Energy and Ivy VIP Global Natural Resources. As of August 31, 2016, Mr. Wolverton did not manage any accounts, but did own shares in the Fund Complex. Information regarding Mr. Wolverton’s ownership of shares as of August 31, 2016, is included below.
Effective October 1, 2016, Timothy J. Miller and Brad Halverson join Kenneth G. McQuade as co-portfolio managers for Ivy VIP Small Cap Growth. Information regarding Mr. Miller as of August 31, 2016, is included below. As of August 31, 2016, Mr. Halverson did not manage any accounts, but did own shares in the Fund Complex. Information regarding Mr. Halverson’s ownership of shares as of August 31, 2016, is included below.
Effective October 1, 2016, Aaron Young joins F. Chace Brundige and Cynthia Prince-Fox as co-portfolio manager for the Ivy VIP Pathfinder Portfolios and Ivy VIP Managed Volatility Portfolios. As of August 31, 2016, Mr. Young did not manage any accounts, but did own shares in the Fund Complex. Information regarding Mr. Young’s ownership of shares as of August 31, 2016, is included below.
Effective October 1, 2016, Bradley J. Warden joins Zachary H. Shafran as a co-portfolio manager for Ivy VIP Science and Technology. As of August 31, 2016, Mr. Warden did not manage any accounts, but did own shares in the Fund Complex. Information regarding Mr. Warden’s ownership of shares as of August 31, 2016, is included below.
Effective immediately, the following is inserted as a new row in the “Management of the Trust — Trustees and Officers — Officers” table:
| NAME, ADDRESS AND |
POSITION(S) HELD WITH THE TRUST AND ADVISORS |
OFFICER OF TRUST SINCE |
OFFICER OF ADVISORS FUND COMPLEX SINCE |
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS | ||||
| Philip J. Sanders* 6300 Lamar Avenue Overland Park, KS 66202 1959 |
President
|
2016
|
2016
|
CEO of WDR (August 2016 to present); President, CEO and Chairman of WRIMCO and IICO (August 2016 to present); President of each of the funds in the Fund Complex (August 2016 to present); CIO of WDR (February 2011 to present); CIO of WRIMCO and IICO (August 2010 to present) |
| * | Mr. Sanders was Vice President of the Trust and the Fund Complex from 1998 until his appointment as President in August 2016. |
| 2 | Statement of Additional Information | Supplement |
Effective October 1, 2016, the following is added after the last table in the “Portfolio Managers” section:
The following tables provide information relating to the portfolio managers of the Portfolios listed below as of August 31, 2016:
Nathan A. Brown—Ivy VIP Mid Cap Growth*
| Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
||||||||||
| Number of Accounts Managed** |
1 | 0 | 0 | |||||||||
| Number of Accounts Managed with Performance-Based Advisory Fees |
0 | 0 | 0 | |||||||||
| Assets Managed (in millions)** |
$ | 203.1 | $ | 0 | $ | 0 | ||||||
| Assets Managed with Performance-Based Advisory Fees (in millions) |
$ | 0 | $ | 0 | $ | 0 | ||||||
| * | Mr. Brown assumed co-investment management responsibilities for Ivy VIP Mid Cap Growth effective October 1, 2016. |
| ** | This data does not include Ivy VIP Mid Cap Growth, since Mr. Brown was not the portfolio manager of Ivy VIP Mid Cap Growth on August 31, 2016. |
Bradley M. Klapmeyer—Ivy VIP Growth*
| Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
||||||||||
| Number of Accounts Managed |
6 | 5 | 24 | |||||||||
| Number of Accounts Managed with Performance-Based Advisory Fees |
0 | 0 | 1 | |||||||||
| Assets Managed (in millions) |
$ | 4,675.4 | $ | 290.1 | $ | 2,171.7 | ||||||
| Assets Managed with Performance-Based Advisory Fees (in millions) |
$ | 0 | $ | 0 | $ | 97.7 | ||||||
| * | Mr. Klapmeyer assumed co-investment management responsibilities for Ivy VIP Growth effective August 1, 2016. |
Timothy J. Miller—Ivy VIP Small Cap Growth*
| Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
||||||||||
| Number of Accounts Managed** |
2 | 0 | 0 | |||||||||
| Number of Accounts Managed with Performance-Based Advisory Fees |
0 | 0 | 0 | |||||||||
| Assets Managed (in millions)** |
$ | 1,802.6 | $ | 0 | $ | 0 | ||||||
| Assets Managed with Performance-Based Advisory Fees (in millions) |
$ | 0 | $ | 0 | $ | 0 | ||||||
| * | Mr. Miller assumed co-investment management responsibilities for Ivy VIP Small Cap Growth effective October 1, 2016. |
| ** | This data does not include Ivy VIP Small Cap Growth, since Mr. Miller was not the portfolio manager of Ivy VIP Small Cap Growth on August 31, 2016. |
Effective October 1, 2016, the following is added as a new table under the second table in the “Portfolio Managers—Ownership of Securities” section:
As of August 31, 2016, the dollar range of shares beneficially owned by the portfolio managers listed below was:
| Manager |
Portfolio |
Dollar Range of Fund Shares Owned* in Portfolio Managed |
Dollar Range of Shares Owned in Similarly Managed Funds within the Fund Complex |
Dollar Range of Shares Owned in Funds in Fund Complex | ||||
| Nathan A. Brown |
Ivy VIP Mid Cap Growth1 | $0 | $100,001 to $500,000 |
$500,001 to $1,000,000 |
| Supplement | Statement of Additional Information | 3 |
| Manager |
Portfolio |
Dollar Range of Fund Shares Owned* in Portfolio Managed |
Dollar Range of Shares Owned in Similarly Managed Funds within the Fund Complex |
Dollar Range of Shares Owned in Funds in Fund Complex | ||||
| Brad Halverson |
Ivy VIP Small Cap Growth2 | $0 | $10,001 to $50,000 |
$100,001 to $500,000 | ||||
| Bradley M. Klapmeyer |
Ivy VIP Growth3 | $0 | $10,001 to $50,000 |
$100,001 to $500,000 | ||||
| Timothy J. Miller |
Ivy VIP Small Cap Growth4 | $0 | $100,001 to $500,000 |
$100,001 to $500,000 | ||||
| Bradley J. Warden |
Ivy VIP Science and Technology5 | $0 | $100,001 to $500,000 |
$500,001 to $1,000,000 | ||||
| Michael T. Wolverton |
Ivy VIP Energy6 | $0 | $10,001 to $50,000 |
$100,001 to $500,000 | ||||
| Ivy VIP Global Natural Resources6 | $0 | $0 | ||||||
| Aaron Young |
Ivy VIP Pathfinder Aggressive7 | $0 | N/A | $100,001 to $500,000 | ||||
| Ivy VIP Pathfinder Conservative7 | $0 | N/A | ||||||
| Ivy VIP Pathfinder Moderate7 | $0 | N/A | ||||||
| Ivy VIP Pathfinder Moderately Aggressive7 | $0 | N/A | ||||||
| Ivy VIP Pathfinder Moderately Conservative7 | $0 | N/A | ||||||
| Ivy VIP Pathfinder Moderate — Managed Volatility7 | $0 | N/A | ||||||
| Ivy VIP Pathfinder Moderately Aggressive — Managed Volatility7 | $0 | N/A | ||||||
| Ivy VIP Pathfinder Moderately Conservative — Managed Volatility7 | $0 | N/A |
| 1 | Mr. Brown assumed co-investment management responsibilities for Ivy VIP Mid Cap Growth effective October 1, 2016. |
| 2 | Mr. Halverson assumed co-investment management responsibilities for Ivy VIP Small Cap Growth effective October 1, 2016. |
| 3 | Mr. Klapmeyer assumed co-investment management responsibilities for Ivy VIP Growth effective August 1, 2016. |
| 4 | Mr. Miller assumed co-investment management responsibilities for Ivy VIP Small Cap Growth effective October 1, 2016. |
| 5 | Mr. Warden assumed co-investment management responsibilities for Ivy VIP Science and Technology effective October 1, 2016. |
| 6 | Mr. Wolverton assumed co-investment management responsibilities for Ivy VIP Energy and Ivy VIP Global Natural Resources effective October 1, 2016. |
| 7 | Mr. Young assumed co-investment management responsibilities for the Ivy VIP Pathfinder Portfolios and the Ivy VIP Pathfinder Managed Volatility Portfolios effective October 1, 2016. |
| 4 | Statement of Additional Information | Supplement |
With limited exceptions, a portion of the portfolio manager’s compensation is held in a deferred account, and deemed to be invested in funds within the Fund Complex. As of August 31, 2016, the dollar range of shares deemed owned by the portfolio manager was:
| Manager |
Portfolio Managed in |
Dollar Range of Shares Deemed Owned in Portfolio or Similarly Managed Style1 |
Dollar Range of Shares Deemed Owned in Funds in Fund Complex | |||
| Timothy J. Miller |
Ivy VIP Small Cap Growth2 | $100,001 to $500,000 | $100,001 to $500,000 |
| 1 | Shares deemed to be owned in Portfolio or similarly managed style within the Fund Complex which is managed by the portfolio manager. |
| 2 | Mr. Miller assumed co-investment management responsibilities for Ivy VIP Small Cap Growth effective October 1, 2016. |
| Supplement | Statement of Additional Information | 5 |