UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-6569

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Ivy Funds, Inc.

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(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

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(Address of principal executive offices) (Zip code)

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

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(Name and address of agent for service)

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

Date of fiscal year end: March 31

Date of reporting period: September 30, 2007

ITEM 1. REPORTS TO STOCKHOLDERS.

Semiannual Report
September 30, 2007



Ivy Asset Strategy Fund
Ivy Capital Appreciation Fund
Ivy Core Equity Fund
Ivy Energy Fund
Ivy High Income Fund
Ivy Large Cap Growth Fund
Ivy Limited-Term Bond Fund
Ivy Mid Cap Growth Fund
Ivy Money Market Fund
Ivy Municipal Bond Fund
Ivy Science and Technology Fund
Ivy Small Cap Growth Fund

CONTENTS

3	President's Letter
5	Illustration of Fund Expenses
13	Ivy Asset Strategy Fund
42	Ivy Capital Appreciation Fund
58	Ivy Core Equity Fund
72	Ivy Energy Fund
85	Ivy High Income Fund
105	Ivy Large Cap Growth Fund
120	Ivy Limited-Term Bond Fund
135	Ivy Mid Cap Growth Fund
150	Ivy Money Market Fund
165	Ivy Municipal Bond Fund
183	Ivy Science and Technology Fund
199	Ivy Small Cap Growth Fund
216	Notes to Financial Statements
243	Renewal of Investment Management Agreement
247	Proxy Voting Information
248	Quarterly Portfolio Schedule Information
249	IRA Disclosure

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

President's Letter
      September 30, 2007
Dear Shareholder:

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

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

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

U.S. growth slows

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

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

Economic Snapshot
	9-30-2007			3-31-2007
U.S. unemployment rate		4.70	%		4.40	%
Inflation (U.S. Consumer Price Index)		2.80	%		2.80	%
U.S. GDP		3.90	%		1.50	%
30-year fixed mortgage rate		6.28	%		6.13	%
Oil price per barrel	$	81.66		$	65.87

Source: Bloomberg, U.S. Department of Labor

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

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

Our commitment

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

Respectfully,

Henry J. Herrmann, CFA
President

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

Illustration of Fund Expenses

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

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

Ivy Asset Strategy Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,221.10		1.05	%	$	5.89
Class B		1,000		1,215.60		1.88			10.41
Class C		1,000		1,216.60		1.80			9.97
Class E**		1,000		1,216.30		1.83			10.08
Class I**		1,000		1,222.40		0.86			4.78
Class Y		1,000		1,220.40		1.12			6.22
Based on 5% Return (2)
Class A	$	1,000	$	1,019.80		1.05	%	$	5.35
Class B		1,000		1,015.64		1.88			9.47
Class C		1,000		1,016.06		1.80			9.07
Class E**		1,000		1,015.90		1.83			9.27
Class I**		1,000		1,020.75		0.86			4.34
Class Y		1,000		1,019.46		1.12			5.65

Ivy Capital Appreciation Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,158.60		1.18	%	$	6.37
Class B		1,000		1,152.70		2.24			12.06
Class C		1,000		1,154.50		1.90			10.34
Class E**		1,000		1,155.10		1.35			7.22
Class I**		1,000		1,156.80		1.08			5.72
Class Y		1,000		1,158.30		1.17			6.37
Based on 5% Return (2)
Class A	$	1,000	$	1,019.14		1.18	%	$	5.96
Class B		1,000		1,013.84		2.24			11.28
Class C		1,000		1,015.52		1.90			9.67
Class E**		1,000		1,018.30		1.35			6.86
Class I**		1,000		1,019.68		1.08			5.45
Class Y		1,000		1,019.20		1.17			5.96

Ivy Core Equity Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,140.60		1.37	%	$	7.39
Class B		1,000		1,136.00		2.27			12.18
Class C		1,000		1,136.70		2.12			11.43
Class E**		1,000		1,140.30		1.58			8.35
Class I**		1,000		1,153.00		1.03			5.49
Class Y		1,000		1,142.00		1.23			6.64
Based on 5% Return (2)
Class A	$	1,000	$	1,018.22		1.37	%	$	6.96
Class B		1,000		1,013.68		2.27			11.48
Class C		1,000		1,014.42		2.12			10.78
Class E		1,000		1,017.14		1.58			7.97
Class I		1,000		1,019.93		1.03			5.15
Class Y		1,000		1,018.90		1.23			6.26

Ivy Energy Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,264.70		1.56	%	$	8.83
Class B		1,000		1,260.50		2.27			12.88
Class C		1,000		1,261.20		2.16			12.21
Class E**		1,000		1,251.00		1.22			6.75
Class I**		1,000		1,251.20		1.11			6.19
Class Y		1,000		1,265.90		1.40			7.93
Based on 5% Return (2)
Class A	$	1,000	$	1,017.25		1.56	%	$	7.87
Class B		1,000		1,013.68		2.27			11.48
Class C		1,000		1,014.26		2.16			10.88
Class E**		1,000		1,018.96		1.22			6.16
Class I**		1,000		1,019.51		1.11			5.65
Class Y		1,000		1,018.06		1.40			7.06

Ivy High Income Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,014.60		1.39	%	$	7.05
Class B		1,000		1,009.40		2.44			12.26
Class C		1,000		1,010.40		2.20			11.06
Class E**		1,000		1,011.30		2.02			10.06
Class I**		1,000		1,025.10		1.03			5.16
Class Y		1,000		1,016.50		1.22			6.15
Based on 5% Return (2)
Class A	$	1,000	$	1,018.09		1.39	%	$	7.06
Class B		1,000		1,012.85		2.44			12.28
Class C		1,000		1,014.06		2.20			11.08
Class E**		1,000		1,014.94		2.02			10.18
Class I**		1,000		1,019.93		1.03			5.15
Class Y		1,000		1,018.97		1.22			6.16

Ivy Large Cap Growth Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A		$1,000		$1,226.70		1.15	%	$	6.46
Class B		1,000		1,219.50		2.37			13.21
Class C		1,000		1,220.90		2.14			11.88
Class E**		1,000		1,223.80		1.33			7.34
Class I**		1,000		1,235.20		0.98			5.48
Class R		1,000		1,224.10		1.50			8.34
Class Y		1,000		1,227.20		1.06			5.90
Based on 5% Return (2)
Class A		$1,000		$1,019.31		1.15	%	$	5.86
Class B		1,000		1,013.19		2.37			11.98
Class C		1,000		1,014.33		2.14			10.78
Class E**		1,000		1,018.40		1.33			6.76
Class I**		1,000		1,020.16		0.98			4.95
Class R		1,000		1,017.53		1.50			7.57
Class Y		1,000		1,019.76		1.06			5.35

Ivy Limited-Term Bond Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,022.70		1.31	%	$	6.67
Class B		1,000		1,018.30		2.19			11.10
Class C		1,000		1,018.30		2.19			11.10
Class E**		1,000		1,022.80		1.15			5.76
Class I**		1,000		1,032.40		0.98			4.98
Class Y		1,000		1,023.50		1.17			5.97
Based on 5% Return (2)
Class A	$	1,000	$	1,018.48		1.31	%	$	6.66
Class B		1,000		1,014.10		2.19			11.08
Class C		1,000		1,014.08		2.19			11.08
Class E		1,000		1,019.31		1.15			5.86
Class I		1,000		1,020.16		0.98			4.95
Class Y		1,000		1,019.19		1.17			5.96

Ivy Mid Cap Growth Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,096.30		1.59	%	$	8.39
Class B		1,000		1,091.10		2.57			13.49
Class C		1,000		1,092.10		2.35			12.34
Class E**		1,000		1,089.90		2.27			11.81
Class I**		1,000		1,102.40		1.16			6.10
Class R		1,000		1,095.80		1.67			8.80
Class Y		1,000		1,098.30		1.25			6.61
Based on 5% Return (2)
Class A	$	1,000	$	1,017.08		1.59	%	$	8.07
Class B		1,000		1,012.19		2.57			12.98
Class C		1,000		1,013.29		2.35			11.88
Class E**		1,000		1,013.69		2.27			11.48
Class I**		1,000		1,019.25		1.16			5.86
Class R		1,000		1,016.72		1.67			8.47
Class Y		1,000		1,018.79		1.25			6.36

Ivy Money Market Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,022.70		0.93	%	$	4.75
Class B		1,000		1,018.10		1.83			9.28
Class C		1,000		1,018.40		1.78			8.98
Class E**		1,000		1,022.00		0.93			4.65
Based on 5% Return (2)
Class A	$	1,000	$	1,020.42		0.93	%	$	4.75
Class B		1,000		1,015.91		1.83			9.27
Class C		1,000		1,016.17		1.78			8.97
Class E**		1,000		1,020.42		0.93			4.75

Ivy Municipal Bond Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,007.40		1.29	%	$	6.52
Class B		1,000		1,003.40		2.08			10.42
Class C		1,000		1,003.30		2.10			10.52
Class Y		1,000		1,006.70		1.44			7.22
Based on 5% Return (2)
Class A	$	1,000	$	1,018.60		1.29	%	$	6.56
Class B		1,000		1,014.63		2.08			10.48
Class C		1,000		1,014.54		2.10			10.58
Class Y		1,000		1,017.84		1.44			7.26

Ivy Science and Technology Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,155.40		1.46	%	$	7.87
Class B		1,000		1,150.00		2.44			13.12
Class C		1,000		1,150.60		2.27			12.26
Class E**		1,000		1,148.70		2.58			13.75
Class I**		1,000		1,171.00		1.11			5.97
Class R		1,000		1,154.30		1.64			8.83
Class Y		1,000		1,156.30		1.36			7.33
Based on 5% Return (2)
Class A	$	1,000	$	1,017.74		1.46	%	$	7.36
Class B		1,000		1,012.83		2.44			12.28
Class C		1,000		1,013.67		2.27			11.48
Class E**		1,000		1,012.14		2.58			12.98
Class I**		1,000		1,019.53		1.11			5.55
Class R		1,000		1,016.86		1.64			8.27
Class Y		1,000		1,018.27		1.36			6.86

Ivy Small Cap Growth Fund Expenses
For the Six Months Ended       September 30, 2007	Beginning Account Value 3-31-07		Ending Account Value 9-30-07		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Period*
Based on Actual Fund Return (1)
Class A	$	1,000	$	1,105.60		1.57	%	$	8.32
Class B		1,000		1,100.30		2.43			12.81
Class C		1,000		1,101.50		2.19			11.56
Class E**		1,000		1,099.80		2.12			11.02
Class I**		1,000		1,120.60		1.09			5.73
Class R		1,000		1,104.90		1.62			8.52
Class Y		1,000		1,106.20		1.33			7.06
Based on 5% Return (2)
Class A	$	1,000	$	1,017.18		1.57	%	$	7.97
Class B		1,000		1,012.91		2.43			12.28
Class C		1,000		1,014.11		2.19			11.08
Class E**		1,000		1,014.46		2.12			10.68
Class I**		1,000		1,019.59		1.09			5.55
Class R		1,000		1,016.94		1.62			8.17
Class Y		1,000		1,018.42		1.33			6.76

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

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

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

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

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

SHAREHOLDER SUMMARY OF IVY ASSET STRATEGY FUND

Portfolio Highlights

On September 30, 2007, Ivy Asset Strategy Fund had net assets totaling $5,106,669,445 invested in a diversified portfolio of:

47.89%	Foreign Common Stocks
21.34%	Domestic Common Stocks
15.13%	Cash and Cash Equivalents, Investment Funds and Unrealized Gain on Open Forward Currency Contracts
7.23%	United States Government and Government Agency Obligations
5.27%	Bullion (Gold)
2.09%	Foreign Corporate Debt Securities
1.04%	Other Government Securities
0.01%	Domestic Corporate Debt Securities

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

Asset Allocation

Stocks	$	69.23
Raw Materials Stocks	$	12.51
Utilities Stocks	$	9.07
Financial Services Stocks	$	8.32
Capital Goods Stocks	$	7.81
Energy Stocks	$	7.72
Multi-Industry Stocks	$	6.35
Business Equipment and Services Stocks	$	4.75
Consumer Durables Stocks	$	3.05
Consumer Non-Durables Stocks	$	2.65
Technology Stocks	$	2.51
Health Care Stocks	$	2.48
Miscellaneous Stocks	$	2.01
Cash and Cash Equivalents, Investment Funds       and Unrealized Gain on Open Forward       Currency Contracts	$	15.13
Bonds	$	10.37
United States Government and             Government Agency Obligations	$	7.23
Corporate Debt Securities	$	2.10
Foreign Government Bonds (1)	$	1.04
Bullion (Gold)	$	5.27

(1)Includes $1.03 Germany and $0.01 Russia.

Country Weightings

North America	$	31.20
United States	$	29.76
Other North America (1)	$	1.44
Europe	$	16.37
Other Europe (2)	$	10.27
Germany	$	6.10
Cash and Cash Equivalents, Investment Funds and       Unrealized Gain on Open Forward Currency Contracts	$	15.13
Pacific Basin	$	13.53
Other Pacific Basin (3)	$	6.16
Japan	$	3.96
India	$	3.41
South America	$	11.58
Chile	$	8.66
Other South America (4)	$	2.92
Bahamas/Caribbean	$	6.71
Cayman Islands	$	4.91
Other Bahamas/Caribbean (5)	$	1.80
Bullion (Gold)	$	5.27
Other (6)	$	0.21

(1)Includes $0.38 Canada and $1.06 Mexico.
(2)Includes $1.01 Finland, $1.84 France, $0.25 Luxembourg, $2.01 Norway, $0.01 Poland, $2.52 Russia, and $2.63 United Kingdom.
(3)Includes $2.12 Australia, $0.43 Indonesia, $1.05 Malaysia and $2.56 Singapore.
(4)Includes $0.11 Argentina and $2.81 Brazil.
(5)Includes $0.56 Bahamas, $1.03 Bermuda and $0.21 British Virgin Islands.
(6)Includes $0.21 South Africa.

The Investments of Ivy Asset Strategy Fund
September 30, 2007                                                                                                        (Unaudited)
BULLION - 5.27%		Troy Ounces		Value
Gold		362,515	$	269,312,407
(Cost: $247,011,753)
COMMON STOCKS		Shares
Aircraft - 1.27%
Boeing Company (The)		523,264		54,937,487
Raytheon Company		157,835		10,073,030
				65,010,517
Banks - 3.20%
Banco Itau Holding Financeira S.A., ADR		248,576		12,582,917
China Merchants Bank Co., Limited, H Shares (A)	10,041,500			44,111,634
Housing Development Finance Corporation Limited (A)		660,903		23,810,587
ICICI Bank Limited (A)		1,238,217		33,012,905
Sberbank (Savings Bank of the Russian Federation) (A)*		2,492,495		10,393,704
Standard Bank Group Limited (A)		759,368		10,962,905
Standard Chartered PLC (A)		871,656		28,534,446
				163,409,098
Business Equipment and Services - 4.54%
Bucyrus International, Inc., Class A		293,893		21,429,208
Ctrip.com International, Ltd.		1,408,894		72,910,265
Jacobs Engineering Group Inc.*		581,916		43,981,211
Mitsui & Co., Ltd. (A)		498,000		12,096,113
Renewable Energy Corporation ASA (A)*		1,760,900		81,165,527
				231,582,324
Capital Equipment - 4.24%
Deere & Company		151,857		22,538,616
Foster Wheeler Ltd.*		250,933		32,931,192
Joy Global Inc.		353,654		17,974,465
SunPower Corporation, Class A*		1,131,162		93,586,688
Suntech Power Holdings Co., Ltd., ADR*		1,242,380		49,570,962
				216,601,923
Chemicals - Petroleum and Inorganic - 1.30%
Monsanto Company		519,981		44,583,171
Yara International ASA (A)		686,369		21,706,638
				66,289,809
Chemicals - Specialty - 0.53%
Mosaic Company*		505,291		27,043,174

Coal - 1.81%
China Shenhua Energy Company Limited, H Shares (A)		8,378,000		50,329,322
Yanzhou Coal Mining Company Limited, Class H (A)	20,522,000			42,238,016
				92,567,338
Communications Equipment - 1.02%
Nokia Corporation, Series A, ADR		1,367,516		51,869,882
Consumer Electronics - 2.65%
Nintendo Co., Ltd. (A)		260,400		135,567,144
Cosmetics and Toiletries - 0.55%
Hengan International Group Company Limited (A)		7,536,000		28,306,592
Electrical Equipment - 1.10%
Bharat Heavy Electricals Limited (A)		456,900		23,356,107
Siemens AG (A)		238,337		32,711,056
				56,067,163
Electronic Components - 0.22%
MEMC Electronic Materials, Inc.*		187,341		11,026,891
Food and Related - 2.10%
Bunge Limited (B)		752,331		80,837,966
Kuala Lumpur Kepong Berhad (A)		6,767,250		26,215,026
				107,052,992
Gold and Precious Metals - 1.28%
Open Joint Stock Company "Mining and      Metallurgical Company Norilsk Nickel", ADR (A)*		37,752		10,221,354
streetTRACKS Gold Trust*		752,700		55,323,450
				65,544,804
Health Care - Drugs - 1.53%
Abbott Laboratories		639,781		34,305,057
Schering-Plough Corporation		1,392,607		44,048,159
				78,353,216
Hospital Supply and Management - 0.95%
Wilmar International Limited (A)	19,699,000			48,534,729
Hotels and Gaming - 1.09%
Las Vegas Sands, Inc.*		415,427		55,426,270
Insurance - Life - 0.76%
Ping An Insurance (Group) Company of China, Ltd.,      H Shares (A)		2,804,500		38,817,857
Mining - 6.75%
BHP Billiton Plc (A)		2,734,145		108,084,795
Cameco Corporation (A)		416,703		19,221,167
Rio Tinto plc (A)		1,174,374		101,588,781
Southern Copper Corporation		935,390		115,829,344
				344,724,087
Motor Vehicles - 0.40%
Suzuki Motor Corporation (A)		688,700		20,385,496
Multiple Industry - 6.35%
Deutsche Borse AG (A)		1,664,354		226,078,173
IOI Corporation Berhad (A)	15,539,640			27,590,557
Keppel Corporation Limited (A)		3,696,000		35,827,937
Reliance Industries Limited (A)		600,724		34,644,427
				324,141,094
Non-Residential Construction - 2.47%
China Communications Construction Company Limited,      H Shares (A)	20,878,000			49,631,192
Fluor Corporation		292,202		42,071,244
Kurita Water Industries Ltd. (A)		1,007,700		34,214,339
				125,916,775
Petroleum - Domestic - 0.72%
OAO NOVATEK, GDR (A)		704,100		36,965,250
Petroleum - International - 2.30%
Apache Corporation		423,950		38,180,937
China Petroleum & Chemical Corporation, H Shares (A)	34,946,000			43,649,628
Devon Energy Corporation		427,918		35,602,778
				117,433,343
Petroleum - Services - 2.89%
Baker Hughes Incorporated (B)		1,012,938		91,539,207
Transocean Inc.*		493,578		55,798,993
				147,338,200
Real Estate Investment Trust - 0.92%
Agile Property Holdings Limited (A)	13,008,000			27,308,291
Hongkong Land Holdings Limited (A)		4,345,000		19,639,400
				46,947,691
Security and Commodity Brokers - 4.36%
CME Group Inc. (B)		221,733		130,234,878
NYMEX Holdings, Inc.		355,558		46,286,540
Singapore Exchange Limited (A)		5,339,000		46,363,581
				222,884,999
Steel - 2.65%
Companhia Vale do Rio Doce, ADR		3,229,608		109,580,599
Evraz Group S.A., GDR (A)		405,850		25,690,305
				135,270,904
Timesharing and Software - 0.21%
Tencent Holdings Limited (A)		1,693,000		10,932,627
Utilities - Electric - 1.84%
Veolia Environment (A)		1,091,482		93,990,500
Utilities - Telephone - 7.23%
America Movil, S.A. de C.V.		805,128		51,528,192
Bharti Airtel Limited (A)*		1,658,719		39,124,913
China Mobile Limited (A)	10,248,500			167,823,414
Equinix, Inc.*		372,741		33,024,853
Mobile TeleSystems OJSC, ADR		131,886		9,141,019
Open Joint Stock Company ''Vimpel-Communications'', ADR		964,120		26,069,805
Perusahaan Perseroan (Persero) PT Telekomunikasi      Indonesia Tbk., Series B Shares (A)	18,302,000			22,014,434
Reliance Communication Ventures Limited (A)		1,387,120		20,425,188
				369,151,818
TOTAL COMMON STOCKS - 69.23%			$	3,535,154,507
(Cost: $2,501,181,643)
INVESTMENT FUNDS - 0.08%
Vietnam Azalea Fund Limited (C)(D)*		1,100,000	$	3,909,400
(Cost: $4,180,000)

CORPORATE DEBT SECURITIES		Principal Amount in Thousands
Banks - 0.14%
Banco BMG S.A.,
8.75%, 7-1-10 (E)		$	2,000		2,042,500
Norilsk Nickel Finance Luxembourg S.A.,
7.125%, 9-30-09			3,225		3,269,795
PT Bank Rakyat Indonesia (Persero),
7.75%, 10-30-13			1,950		1,988,850
					7,301,145
Beverages - 0.01%
Central European Distribution Corporation,
8.0%, 7-25-12 (E)(F)	EUR320				464,287
Business Equipment and Services - 0.08%
Shimao Property Holdings Limited,
8.0%, 12-1-16 (G)		$	4,000		3,960,000
Finance Companies - 0.40%
ALROSA Finance S.A.,
8.125%, 5-6-08			3,300		3,326,449
C5 Capital (SPV) Limited,
6.196%, 12-31-49 (G)		10,750			10,621,430
Russian Standard Bank:
8.125%, 4-21-08			5,000		4,839,800
7.5%, 10-7-10			1,400		1,239,000
7.5%, 10-7-10 (G)			200		175,480
Toyota Motor Credit Corporation,
4.19%, 1-18-15 (H)			325		297,486
					20,499,645
Food and Related - 0.11%
Cosan S.A. Industria e Comercio:
9.0%, 11-1-09			4,840		5,106,200
9.0%, 11-1-09 (G)			500		527,500
					5,633,700
Forest and Paper Products - 0.13%
Kimberly-Clark de Mexico, S.A. de C.V.,
8.875%, 8-1-09 (E)			1,500		1,594,779
Sino-Forest Corporation:
9.125%, 8-17-11			4,000		4,180,000
9.125%, 8-17-11 (G)			700		740,250
					6,515,029
Homebuilders, Mobile Homes - 0.02%
Desarrolladora Homex, S.A. de C.V.,
7.5%, 9-28-15			900		895,500
Mining - 0.08%
Vedanta Resources plc:
6.625%, 2-22-10			3,500		3,486,875
6.625%, 2-22-10 (G)			550		547,250
					4,034,125
Motor Vehicles - 0.01%
Hyundai Motor Company,
5.3%, 12-19-08 (E)			320		319,502
Steel - 0.11%
Evraz Group S.A.:
8.25%, 11-10-15			1,500		1,503,750
8.25%, 11-10-15 (G)			500		501,950
EvrazSecurities S.A.,
10.875%, 8-3-09			3,500		3,724,490
					5,730,190
Trucking and Shipping - 0.55%
Ultrapetrol (Bahamas) Limited,
9.0%, 11-24-14		29,760			28,458,000
Utilities - Electric - 0.40%
CESP - Companhia Energetica de Sao Paulo,
9.75%, 1-15-15 (E)(F)	BRL23,100				13,517,218
Compania de Transporte de Energia Electrica en       Alta Tension TRANSENER S.A.:
8.875%, 12-15-16		$	3,350		3,115,500
8.875%, 12-15-16 (G)			3,000		2,790,000
Empresa Nacional de Electricidad S.A.,
7.75%, 7-15-08			900		914,740
					20,337,458
Utilities - Telephone - 0.06%
Open Joint Stock Company Mobile TeleSystems,
9.75%, 1-30-08			2,400		2,413,200
Open Joint Stock Company "Vimpel-Communications",
8.0%, 2-11-10			750		763,125
					3,176,325
TOTAL CORPORATE DEBT SECURITIES - 2.10%				$	107,324,906
(Cost: $106,273,377)

OTHER GOVERNMENT SECURITIES
Germany - 1.03%
Bundesobligation,
3.5%, 10-9-09 (F)	EUR37,500				52,898,052
Russia - 0.01%
Open Joint Stock Company "Russian Railroads",
6.67%, 1-22-09 (F)	RUB7,000				278,780
TOTAL OTHER GOVERNMENT SECURITIES - 1.04%				$	53,176,832
(Cost: $52,527,129)
UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations - 0.61%
Federal Home Loan Mortgage Corporation Agency       REMIC/CMO (Interest Only):
4.5%, 8-15-17		$	5,211		434,182
5.5%, 9-15-17			4,772		727,351
5.0%, 11-15-17			2,420		294,204
5.0%, 5-15-18			3,313		832,856
5.0%, 4-15-19			410		55,741
5.0%, 4-15-19			201		28,451
5.0%, 2-15-20			17		7
5.0%, 7-15-21			260		11,519
5.0%, 6-15-22			149		2,439
5.0%, 7-15-22			710		12,365
5.0%, 11-15-22			545		75,450
5.0%, 1-15-23			174		3,926
5.5%, 3-15-23			3,714		758,724
5.0%, 4-15-23			143		7,169
5.0%, 5-15-23			365		55,329
5.0%, 6-15-23			3,564		545,987
5.0%, 6-15-23			2,883		436,659
5.0%, 8-15-23			271		44,208
5.5%, 11-15-23			942		38,873
5.5%, 11-15-23			565		28,708
5.0%, 9-15-24			425		23,785
5.5%, 9-15-24			218		11,914
5.5%, 4-15-25			166		11,375
5.5%, 4-15-25			68		7,796
5.0%, 9-15-25			677		41,031

5.5%, 10-15-25	4,126			859,254
5.0%, 4-15-26		2,386		157,407
5.0%, 10-15-28		990		171,760
5.5%, 2-15-30		250		26,791
5.0%, 8-15-30		342		32,413
5.0%, 10-15-30		1,250		305,528
5.5%, 3-15-31		365		49,079
5.5%, 10-15-32		3,900		762,977
5.5%, 1-15-33		2,758		737,949
5.5%, 5-15-33		2,835		690,817
5.0%, 7-15-33		2,818		648,310
6.0%, 11-15-35		2,889		661,775
Federal National Mortgage Association Agency       REMIC/CMO (Interest Only):
5.5%, 11-25-17		386		23,141
5.0%, 5-25-22		227		32,698
5.0%, 7-25-23		5,396		1,007,072
5.0%, 8-25-23		1,700		284,505
5.0%, 11-25-23		2,716		459,471
5.5%, 9-25-25		222		11,652
5.5%, 11-25-25		482		23,046
4.5%, 4-25-30		2,452		305,728
5.0%, 3-25-31		6,338		1,131,669
5.0%, 8-15-31		4,145		758,161
5.5%, 6-25-33		4,141		829,941
5.5%, 8-25-33		7,600		1,581,478
5.5%, 12-25-33		3,493		730,005
5.5%, 4-25-34		7,084		1,687,151
5.5%, 8-25-35		3,659		1,058,748
5.5%, 11-25-36	11,450			3,361,860
Federal National Mortgage Corporation Agency       REMIC/CMO (Interest Only),
5.0%, 9-25-30		2,315		351,420
Government National Mortgage Association Agency       REMIC/CMO (Interest Only):
5.0%, 1-20-30	795			83,478
5.0%, 6-20-31		787		97,871
5.5%, 3-20-32		3,376		555,862
5.0%, 10-20-32		1,685		481,861
7.0%, 5-20-33		7,047		1,618,609
5.5%, 7-16-33		3,100		803,704
5.0%, 7-20-33		150		25,555
5.5%, 11-20-33		822		145,393
5.5%, 6-20-35		7,187		1,736,573
5.5%, 7-20-35		2,900		671,993
5.5%, 7-20-35		1,357		186,228
5.5%, 10-16-35		6,784		1,545,263
				31,184,245
Treasury Obligations - 6.62%
United States Treasury Notes:
4.625%, 2-29-08	29,000			29,061,161
5.125%, 6-30-08	29,000			29,203,899
4.125%, 8-15-08 (B)	45,000			45,000,000
4.375%, 11-15-08 (B)	54,000			54,198,288
4.875%, 1-31-09	36,000			36,405,000
4.5%, 3-31-09	29,000			29,212,976
4.625%, 7-31-09	29,000			29,326,250
4.0%, 8-31-09	48,000			48,018,768
4.5%, 5-15-10	37,000			37,453,842
				337,880,184
TOTAL UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS - 7.23%			$	369,064,429
(Cost: $367,214,369)

UNREALIZED GAIN (LOSS) ON OPEN FORWARD CURRENCY CONTRACTS - 0.46%		Face Amount in Thousands
Chinese Yuan Renminbi, 11-9-07 (F)	CNY996,000		$	606,242
Chinese Yuan Renminbi, 11-16-07 (F)	1,231,500			383,533
Chinese Yuan Renminbi, 12-6-07 (F)	1,134,000			937,569
Chinese Yuan Renminbi, 12-6-07 (F)		72,000		(22,620	)
Chinese Yuan Renminbi, 2-27-08 (F)	1,314,500			1,237,748
Chinese Yuan Renminbi, 4-9-08 (F)	118,000			(16,895	)
Euro, 1-10-08 (F)	EUR139,200			9,512,992
Russian Ruble, 6-16-08 (F)	RUB2,395,000			2,733,386
Russian Ruble, 6-25-08 (F)	2,540,000			3,170,459
Russian Ruble, 8-20-08 (F)	2,751,000			3,209,369
Russian Ruble, 9-22-08 (F)	1,009,000			551,972
Singapore Dollar, 8-21-08 (F)	SGD66,400			1,180,879
			$	23,484,634

SHORT-TERM SECURITIES	Principal Amount in Thousands
Commercial Paper
Beverages - 0.78%
Anheuser-Busch Companies, Inc.:
4.73%, 10-1-07	$	20,000	20,000,000
4.7%, 11-19-07		20,000	19,872,056
			39,872,056
Capital Equipment - 0.12%
Deere (John) Capital Corporation,
5.26%, 10-5-07		6,000	5,996,493
Chemicals - Petroleum and Inorganic - 0.35%
E.I. du Pont de Nemours and Company,
4.75%, 10-9-07		18,000	17,981,000
Chemicals - Specialty - 0.38%
Air Products and Chemicals, Inc.,
4.8%, 10-3-07		19,583	19,577,778
Computers - Main and Mini - 0.88%
International Business Machines Corporation:
4.76%, 10-5-07		21,000	20,988,894
5.12%, 10-30-07		24,000	23,901,013
			44,889,907

Electrical Equipment - 0.60%
W.W. Grainger, Inc.:
4.78%, 10-24-07		16,650		16,599,153
4.78%, 10-24-07		10,000		9,969,461
4.795%, 10-24-07		4,000		3,987,746
				30,556,360
Finance Companies - 0.29%
BP Capital Markets p.l.c.:
4.75%, 10-1-07		5,071		5,071,000
4.745%, 10-15-07		5,000		4,990,774
4.76%, 10-15-07		5,000		4,990,744
				15,052,518
Food and Related - 2.67%
Archer Daniels Midland Company,
5.11%, 11-6-07		30,000		29,846,700
Campbell Soup Co.,
5.25%, 10-1-07		40,017		40,017,000
Hershey Company (The):
5.15%, 10-9-07		5,195		5,189,055
4.76%, 10-15-07		11,305		11,284,073
5.3%, 10-15-07		10,000		9,979,389
Nestle Capital Corp.:
4.79%, 10-4-07		25,000		24,990,021
4.8%, 12-12-07		15,000		14,856,000
				136,162,238
Health Care - Drugs - 2.15%
Abbott Laboratories:
5.2%, 10-10-07		19,500		19,474,650
4.99%, 10-23-07		21,414		21,348,699
Alcon Capital Corporation (Nestle S.A.),
5.2%, 11-14-07		10,000		9,936,444
GlaxoSmithKline Finance plc:
4.835%, 10-5-07		2,000		1,998,926
4.835%, 10-12-07		20,000		19,970,453
5.2%, 10-12-07		20,000		19,968,222
4.76%, 12-18-07		9,121		9,026,932
Merck & Co., Inc.
4.75%, 10-18-07		8,000		7,982,056
				109,706,382
Health Care - General - 0.84%
Johnson & Johnson:
4.73%, 10-9-07		17,000		16,982,131
4.74%, 10-9-07		7,000		6,992,627
4.72%, 11-20-07		19,000		18,875,445
				42,850,203
Household - General Products - 0.74%
Procter & Gamble International Funding S.C.A.            (Procter & Gamble Company (The)):
4.76%, 10-9-07		3,000		2,996,827
5.2%, 10-9-07		10,000		9,988,445
5.27%, 10-10-07		10,000		9,986,825
4.795%, 10-17-07		5,000		4,989,344
5.0%, 11-8-07		10,000		9,947,222
				37,908,663
Multiple Industry - 0.29%
Honeywell International Inc.,
4.76%, 11-21-07		15,000		14,898,850
Retail - General Merchandise - 0.27%
Target Corporation,
5.0%, 10-19-07		14,000		13,965,000
Trucking and Shipping - 0.59%
United Parcel Service Inc.,
5.02%, 10-5-07		30,000		29,983,267
Total Commercial Paper - 10.95%				559,400,715
Municipal Obligations - Taxable
Indiana - 0.05%
City of Hobart, Indiana, Taxable Variable Rate            Demand, Economic Development Revenue Bonds            (Albanese Confectionery Group, Inc. Project),            Series 2006B (Harris N.A.),
5.15%, 10-4-07 (H)		2,500		2,500,000
Kansas - 0.05%
City of Park City, Kansas, Taxable Industrial Revenue            Bonds (The Hayes Company, Inc.), Series 2001            (U.S. Bank, National Association),
5.3%, 10-1-07 (H)		2,720		2,720,000
Washington - 0.07%
Washington State Housing Finance Commission,            Taxable Variable Rate Demand Multifamily Revenue            Bonds (Brittany Park Project), Series 1996B            (U.S. Bank of Washington, National Association),
5.13%, 10-4-07 (H)	3,330			3,330,000
Wisconsin - 0.08%
Town of Wood River, Wisconsin, Taxable Variable            Rate Demand Industrial Development Revenue            Bonds (Burnett Dairy Cooperative Project),            Series 2001B (U. S. Bank, National Association),
5.3%, 10-1-07 (H)		3,970		3,970,000
Total Municipal Obligations - Taxable - 0.25%				12,520,000
Notes
Business Equipment and Services - 0.25%
Schlitz Park Associates II Limited Partnership and            1610 N. 2nd Street LLC, Taxable Variable Rate            Demand Bonds, Series 2001 (U.S. Bank, National            Association),
5.3%, 10-1-07 (H)		12,780		12,780,000
Finance Companies - 0.09%
Park Street Properties I, LLC, Taxable Variable Rate            Demand Notes, Series 2004 (University of            Wisconsin - Madison Projects), (U.S. Bank,            National Association),
5.13%, 10-4-07 (H)		4,550		4,550,000
Health Care - General - 0.19%
ACTS Retirement - Life Communities, Inc.,            Variable Rate Demand Bonds, Series 2003A            (Bank of America, National Association),
5.05%, 10-4-07 (H)		9,510		9,510,000
Hospital Supply and Management - 0.03%
Meriter Management Services, Inc., Taxable            Variable Rate Demand Notes, Series 1996            (U.S. Bank Milwaukee, National Association),
5.3%, 10-3-07 (H)		1,730		1,730,000
Retail - General Merchandise - 0.13%
Service Oil, Inc., Taxable Variable Rate Demand            Bonds (Service Oil, Inc.), Series 2002 (U.S. Bank,            National Association),
5.3%, 10-1-07 (H)		6,760		6,760,000
Total Notes- 0.69%				35,330,000
United States Government Obligations - 0.35%
Overseas Private Investment Corporation:
5.3%, 10-3-07 (H)		8,758		8,757,750
5.3%, 10-3-07 (H)		5,000		5,000,000
5.35%, 10-3-07 (H)		4,200		4,200,000
				17,957,750
TOTAL SHORT-TERM SECURITIES - 12.24%			$	625,208,465
(Cost: $625,208,465)
TOTAL INVESTMENT SECURITIES - 97.65%			$	4,986,635,580
(Cost: $3,903,596,736)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.35%				120,033,865
NET ASSETS - 100.00%			$	5,106,669,445

Notes to Schedule of Investments
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit.
*No dividends were paid during the preceding 12 months.
(A)Listed on an exchange outside the United States.
(B)Securities serve as collateral for the following open futures contracts at September 30, 2007. (See Note 8 to financial statements):
	Description	Type	Expiration Date	Number of Contracts		Market Value	Unrealized Depreciation
	DAX Index	Short	12-21-07	994	$	(277,228,812	)	$	(6,389,240	)
	Hang Seng Index	Short	10-30-07	2,917		(510,939,710	)		(3,215,729	)
	Nasdaq 100 E-Mini	Short	12-21-07	10,760		(454,932,800	)		(15,741,917	)
	Nikkei 225	Short	12-13-07	3,474		(511,418,254	)		(24,187,108	)
	Russell 2000 E-Mini	Short	12-21-07	8,128		(660,968,960	)		(13,873,735	)
	S&P 500 E-Mini	Short	12-21-07	14,469		(1,112,738,445	)		(18,447,043	)
					$	(3,528,226,981	)	$	(81,854,772	)
(C)Deemed to be an affiliate due to the Fund having at least 5% of the voting securities.
(D)Restricted security. At September 30, 2007, the total value of restricted securities owned were:

	Security	Acquisition Date	Shares	Cost	Market Value
	Vietnam Azalea Fund Limited	6-28-07	1,100,000	$4,180,000	$3,909,400
The total market value of restricted securities represents approximately 0.08% of net assets at September 30, 2007.
(E)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors. At September 30, 2007, the total value of these securities amounted to $17,938,286 or 0.35% of net assets.
(F)Principal amounts are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real, CNY - Chinese Yuan Renminbi, EUR - Euro, RUB - Russian Ruble, SGD - Singapore Dollar).
(G)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At September 30, 2007, the total value of these securities amounted to $19,863,860 or 0.39% of net assets.
(H)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

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

ASSETS
Investment securities - at value (Notes 1 and 3):
Securities (cost - $3,652,405)	$	4,713,414
Bullion (cost - $247,012)		269,312
Affiliated company (cost - $4,180)		3,910
		4,986,636
Cash denominated in foreign currencies (cost - $21)		22
Receivables:
Fund shares sold		111,338
Variation margin (Note 8)		12,019
Dividends and interest		11,509
Investment securities sold		6,833
Prepaid and other assets		183
Total assets		5,128,540
LIABILITIES
Payable for investment securities purchased		7,602
Due to custodian		5,563
Payable to Fund shareholders		3,918
Accrued shareholder servicing (Note 2)		675
Accrued management fee (Note 2)		251
Accrued distribution fee (Note 2)		161
Accrued service fee (Note 2)		93
Accrued accounting services fee (Note 2)		22
Other		3,586
Total liabilities		21,871
Total net assets	$	5,106,669

NET ASSETS
$0.01 par value capital stock:
Capital stock	$	2,053
Additional paid-in capital		4,130,317
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		18,913
Accumulated undistributed net realized loss on investment transactions		(42,650	)
Net unrealized appreciation in value of investments		998,036
Net assets applicable to outstanding units of capital	$	5,106,669
Net asset value per share (net assets divided by shares outstanding):
Class A	$25.09
Class B	$24.58
Class C	$24.66
Class E	$25.03
Class I	$25.19
Class Y	$25.10
Capital shares outstanding:
Class A		84,368
Class B		7,658
Class C		91,696
Class E		127
Class I		175
Class Y		21,249
Capital shares authorized		500,000

See Notes to Financial Statements.

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

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $1,247)	$	20,891
Interest and amortization (net of foreign withholding taxes of $2)		19,707
Total income		40,598
Expenses (Note 2):
Investment management fee		11,042
Distribution fee:
Class B		549
Class C		5,971
Class E		2
Class Y		364
Service fee:
Class A		1,846
Class B		183
Class C		1,991
Shareholder servicing:
Class A		756
Class B		131
Class C		811
Class E		6
Class I		2
Class Y		255
Custodian fees		440
Accounting services fee		134
Legal fees		27
Audit fees		15
Other		525
Total expenses		25,050
Net investment income		15,548

REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities	$	19,963
Realized net gain on forward currency contracts		7,875
Realized net gain on written options		211
Realized net gain on swap agreements		14,432
Realized net loss on futures contracts	(147,483		)
Realized net gain on foreign currency exchange transactions		6,547
Realized loss on investments		(98,455	)
Unrealized appreciation in value of securities during the period*		874,494
Unrealized appreciation in value of forward currency contracts            during the period		22,627
Unrealized depreciation in value of futures contracts during the period	(68,397		)
Unrealized appreciation in value of foreign currency exchange            transactions during the period		22
Unrealized appreciation in value of investments during the period		828,746
Net gain on investments		730,291
Net increase in net assets resulting from operations	$	745,839

*Includes $271 in depreciation of affiliated security.

See Notes to Financial Statements.

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

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007
INCREASE IN NET ASSETS
Operations:
Net investment income		$	15,548		$	13,599
Realized net gain (loss) on investments			(98,455	)		63,031
Unrealized appreciation			828,746			87,146
Net increase in net assets                       resulting from operations			745,839			163,776
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(6,792	)		(564	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(6	)		NA
Class I			(12	)		NA
Class Y			(1,266	)		(66	)
Realized gains on investment transactions:
Class A			(––	)		(6,756	)
Class B			(––	)		(715	)
Class C			(––	)		(6,374	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(715	)
			(8,076	)		(15,190	)
Capital share transactions (Note 5)			1,775,784			1,859,601
Total increase			2,513,547			2,008,187
NET ASSETS
Beginning of period			2,593,122			584,935
End of period		$	5,106,669		$	2,593,122
Undistributed net investment income		$	18,913		$	4,894

(1)See "Financial Highlights" on pages 36 - 41.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	20.65		$	18.76		$	14.21		$	12.86		$	11.18		$	11.33
Income (loss) from       investment operations:
Net investment income			0.15	(1)		0.25	(1)		0.05			0.06			0.08			0.16
Net realized and unrealized             gain (loss) on investments			4.40	(1)		1.81	(1)		4.68			1.47			1.71			(0.16	)
Total from investment operations			4.55			2.06			4.73			1.53			1.79			(0.00	)
Less distributions from:
Net investment income			(0.11	)		(0.02	)		(0.04	)		(0.07	)		(0.11	)		(0.15	)
Capital gains			(0.00	)		(0.15	)		(0.14	)		(0.11	)		(0.00	)		(0.00	)
Total distributions			(0.11	)		(0.17	)		(0.18	)		(0.18	)		(0.11	)		(0.15	)
Net asset value, end of period		$	25.09		$	20.65		$	18.76		$	14.21		$	12.86		$	11.18
Total return(2)			22.11	%		11.04	%		33.40	%		12.02	%		16.06	%		0.00	%
Net assets, end of period       (in millions)		$2,117			$1,118			$269			$39			$17			$9
Ratio of expenses to       average net assets			1.05	%(3)		1.13	%		1.28	%		1.44	%		1.47	%		1.40	%
Ratio of net investment income       to average net assets			1.27	%(3)		1.28	%		0.69	%		0.56	%		0.53	%		1.23	%
Portfolio turnover rate			39	%		123	%		53	%		98	%		254	%		109	%

(1)Based on average weekly shares outstanding.

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

(3)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	20.22		$	18.50		$	14.11		$	12.83		$	11.17		$	11.32
Income (loss) from       investment operations:
Net investment income (loss)			0.05			0.08			0.01			(0.03	)		(0.03	)		0.05
Net realized and unrealized             gain (loss) on investments			4.31			1.79			4.52			1.44			1.71			(0.15	)
Total from investment operations			4.36			1.87			4.53			1.41			1.68			(0.10	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)*		(0.02	)		(0.02	)		(0.05	)
Capital gains			(0.00	)		(0.15	)		(0.14	)		(0.11	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.15	)		(0.14	)		(0.13	)		(0.02	)		(0.05	)
Net asset value, end of period		$	24.58		$	20.22		$	18.50		$	14.11		$	12.83		$	11.17
Total return			21.56	%		10.16	%		32.22	%		11.02	%		15.07	%		-0.92	%
Net assets, end of period       (in millions)		$188			$119			$37			$11			$7			$3
Ratio of expenses to       average net assets			1.88	%(1)		1.98	%		2.14	%		2.30	%		2.38	%		2.35	%
Ratio of net investment income       (loss) to average net assets			0.44	%(1)		0.43	%		-0.13	%		-0.30	%		-0.40	%		0.31	%
Portfolio turnover rate			39	%		123	%		53	%		98	%		254	%		109	%

*Not shown due to rounding.
(1)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	20.27		$	18.54		$	14.12		$	12.83		$	11.17		$	11.32
Income (loss) from investment       operations:
Net investment income (loss)			0.05			0.07			0.01			(0.03	)		(0.03	)		0.05
Net realized and unrealized             gain (loss) on investments			4.34			1.81			4.56			1.45			1.73			(0.14	)
Total from investment operations			4.39			1.88			4.57			1.42			1.70			(0.09	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.01	)		(0.02	)		(0.04	)		(0.06	)
Capital gains			(0.00	)		(0.15	)		(0.14	)		(0.11	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.15	)		(0.15	)		(0.13	)		(0.04	)		(0.06	)
Net asset value, end of period		$	24.66		$	20.27		$	18.54		$	14.12		$	12.83		$	11.17
Total return			21.66	%		10.19	%		32.45	%		11.11	%		15.21	%		-0.79	%
Net assets, end of period       (in millions)		$2,261			$1,153			$250			$55			$49			$51
Ratio of expenses to       average net assets			1.80	%(1)		1.90	%		2.01	%		2.21	%		2.27	%		2.20	%
Ratio of net investment income       (loss) to average net assets			0.51	%(1)		0.52	%		-0.01	%		-0.22	%		-0.26	%		0.46	%
Portfolio turnover rate			39	%		123	%		53	%		98	%		254	%		109	%

(1)Annualized.

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through 9-30-07
Net asset value, beginning of period		$	20.65
Income from investment operations:
Net investment income			0.02	(2)
Net realized and unrealized gain on investments			4.47	(2)
Total from investment operations			4.49
Less distributions from:
Net investment income			(0.11	)
Capital gains			(0.00	)
Total distributions			(0.11	)
Net asset value, end of period		$	25.03
Total return(3)			21.63	%
Net assets, end of period (in millions)		$3
Ratio of expenses to average net assets			1.83	%(4)
Ratio of net investment income to average net assets			0.30	%(4)
Portfolio turnover rate			39	%(5)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through 9-30-07
Net asset value, beginning of period		$	20.67
Income from investment operations:
Net investment income			0.13	(2)
Net realized and unrealized gain on investments			4.50	(2)
Total from investment operations			4.63
Less distributions from:
Net investment income			(0.11	)
Capital gains			(0.00	)
Total distributions			(0.11	)
Net asset value, end of period		$	25.19
Total return			22.24	%
Net assets, end of period (in millions)		$4
Ratio of expenses to average net assets			0.86	%(3)
Ratio of net investment income to average net assets			1.53	%(3)
Portfolio turnover rate			39	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	20.67		$	18.78		$	14.22		$	12.87		$	11.18		$	11.33
Income (loss) from investment       operations:
Net investment income			0.15	(1)		0.26	(1)		0.05			0.08			0.09			0.11
Net realized and unrealized gain             (loss) on investments			4.39	(1)		1.80	(1)		4.69			1.45			1.71			(0.10	)
Total from investment operations			4.54			2.06			4.74			1.53			1.80			0.01
Less distributions from:
Net investment income			(0.11	)		(0.02	)		(0.04	)		(0.07	)		(0.11	)		(0.16	)
Capital gains			(0.00	)		(0.15	)		(0.14	)		(0.11	)		(0.00	)		(0.00	)
Total distributions			(0.11	)		(0.17	)		(0.18	)		(0.18	)		(0.11	)		(0.16	)
Net asset value, end of period		$	25.10		$	20.67		$	18.78		$	14.22		$	12.87		$	11.18
Total return			22.04	%		11.04	%		33.46	%		12.05	%		16.19	%		0.08	%
Net assets, end of period       (in millions)		$534			$203			$29			$4			$2			$1
Ratio of expenses to       average net assets			1.12	%(2)		1.15	%		1.22	%		1.35	%		1.39	%		1.32	%
Ratio of net investment income       to average net assets			1.23	%(2)		1.30	%		0.81	%		0.66	%		0.67	%		1.34	%
Portfolio turnover rate			39	%		123	%		53	%		98	%		254	%		109	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY CAPITAL APPRECIATION FUND

Portfolio Highlights

On September 30, 2007, Ivy Capital Appreciation Fund had net assets totaling $455,796,960 invested in a diversified portfolio of:

76.51%	Domestic Common Stocks
16.46%	Cash and Cash Equivalents
7.03%	Foreign Common Stock

Sector Weightings

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

Technology Stocks	$	22.52
Cash and Cash Equivalents	$	16.46
Health Care Stocks	$	13.12
Financial Services Stocks	$	9.60
Retail Stocks	$	6.47
Consumer Nondurables Stocks	$	6.36
Miscellaneous Stocks	$	5.97
Consumer Durables Stocks	$	4.40
Consumer Services Stocks	$	3.53
Business Equipment and Services Stocks	$	3.38
Capital Goods Stocks	$	3.35
Raw Materials Stocks	$	2.56
Energy Stocks	$	2.28

The Investments of Ivy Capital Appreciation Fund
September 30, 2007                                                                                                    (Unaudited)
COMMON STOCKS	Shares			Value
Air Transportation - 0.46%
AMR Corporation*		95,000	$	2,117,550
Aircraft - 7.28%
Boeing Company (The)		150,000		15,748,500
Raytheon Company		105,000		6,701,100
Rockwell Collins, Inc.		115,000		8,399,600
United Technologies Corporation		29,000		2,333,920
				33,183,120
Apparel - 1.35%
Coach, Inc.*		130,000		6,145,100
Banks - 0.89%
Bank of America Corporation		25,000		1,256,750
Citigroup Inc.		60,000		2,800,200
				4,056,950
Beverages - 2.22%
Coca-Cola Company (The)		60,000		3,448,200
Hansen Natural Corporation*		72,500		4,113,650
PepsiCo, Inc.		35,000		2,564,100
				10,125,950
Broadcasting - 1.01%
Comcast Corporation, Class A*		190,000		4,592,300
Capital Equipment - 0.98%
Illinois Tool Works Inc.		75,000		4,473,000
Chemicals - Petroleum and Inorganic - 0.62%
Monsanto Company		33,000		2,829,420
Chemicals - Specialty - 0.73%
Albemarle Corporation		75,000		3,315,000
Communications Equipment - 2.91%
Cisco Systems, Inc.*		305,000		10,103,125
QUALCOMM Incorporated		75,000		3,168,750
				13,271,875
Computers - Main and Mini - 1.26%
Hewlett-Packard Company		115,000		5,725,850
Computers - Micro - 3.84%
Apple Inc.*		87,000		13,353,195
Dell Inc.*		150,000		4,139,250
				17,492,445
Computers - Peripherals - 2.84%
Adobe Systems Incorporated*		145,000		6,332,150
Microsoft Corporation		225,000		6,629,625
				12,961,775
Consumer Electronics - 3.46%
Research In Motion Limited*		160,000		15,764,800
Defense - 2.80%
DRS Technologies, Inc.		25,000		1,378,000
General Dynamics Corporation		135,000		11,403,450
				12,781,450
Electronic Components - 1.59%
Intel Corporation		110,000		2,845,150
Texas Instruments Incorporated		120,000		4,390,800
				7,235,950
Finance Companies - 1.24%
Blackstone Group L.P. (The)*		120,000		3,009,600
Freddie Mac		45,000		2,655,450
				5,665,050
Food and Related - 0.92%
Wm. Wrigley Jr. Company		65,600		4,213,488
Health Care - Drugs - 11.03%
Abbott Laboratories		117,000		6,273,540
BioMarin Pharmaceutical Inc.*		100,000		2,488,500
Genentech, Inc.*		80,000		6,241,600
Gilead Sciences, Inc.*		300,000		12,256,500
Merck & Co., Inc.		110,000		5,685,900
Schering-Plough Corporation		185,000		5,851,550
Shire Pharmaceuticals Group plc, ADR		155,000		11,461,475
				50,259,065
Health Care - General - 1.85%
Hologic, Inc.*		100,000		6,097,000
TomoTherapy Incorporated*		100,000		2,317,500
				8,414,500
Hospital Supply and Management - 0.24%
HMS Holdings Corp.*		44,981		1,104,734
Hotels and Gaming - 2.05%
Las Vegas Sands, Inc.*		70,000		9,339,400
Household - General Products - 1.87%
Colgate-Palmolive Company		70,000		4,992,400
Procter & Gamble Company (The)		50,000		3,517,000
				8,509,400
Insurance - Property and Casualty - 0.88%
Ambac Financial Group, Inc.		57,000		3,585,870
Oaktree Capital Group, LLC, Class A Units (A)*		12,000		441,000
				4,026,870
Leisure Time Industry - 0.47%
Force Protection, Inc.*		100,000		2,167,000
Metal Fabrication - 2.37%
Precision Castparts Corp.		73,000		10,802,540
Motor Vehicles - 0.94%
Harley-Davidson, Inc.		35,000		1,617,350
Honda Motor Co., Ltd., ADR		80,000		2,668,800
				4,286,150
Multiple Industry - 1.83%
Altria Group, Inc.		120,000		8,343,600
Petroleum - Internationals - 0.82%
Anadarko Petroleum Corporation		12,000		645,000
Apache Corporation		26,000		2,341,560
Chesapeake Energy Corporation		21,000		740,460
				3,727,020
Petroleum - Services - 1.46%
Baker Hughes Incorporated		30,000		2,711,100
Nabors Industries Ltd.*		11,000		338,470
Schlumberger Limited		17,000		1,785,000
Transocean Inc.*		16,000		1,808,800
				6,643,370
Railroad - 1.70%
Burlington Northern Santa Fe Corporation		40,000		3,246,800
Union Pacific Corporation		40,000		4,522,400
				7,769,200
Restaurants - 1.98%
Panera Bread Company, Class A*		55,000		2,243,725
YUM! Brands, Inc.		200,000		6,766,000
				9,009,725
Retail - General Merchandise - 3.83%
Costco Wholesale Corporation		105,000		6,448,050
Kohl's Corporation*		120,000		6,879,600
Target Corporation		65,000		4,132,050
				17,459,700
Retail - Specialty Stores - 0.66%
Best Buy Co., Inc.		44,000		2,024,880
Home Depot, Inc. (The)		30,000		973,200
				2,998,080
Security and Commodity Brokers - 6.59%
CME Group Inc.		19,000		11,159,650
Goldman Sachs Group, Inc. (The)		21,000		4,551,540
Merrill Lynch & Co., Inc.		75,000		5,346,000
NYMEX Holdings, Inc.		34,000		4,426,120
Prudential Financial, Inc.		28,000		2,732,240
UBS AG		34,000		1,810,500
				30,026,050
Steel - 1.21%
Allegheny Technologies Incorporated		50,000		5,497,500
Timesharing and Software - 3.38%
F5 Networks, Inc.*		125,000		4,645,625
Google Inc., Class A*		19,000		10,782,215
				15,427,840
Utilities - Telephone - 1.98%
AT&T Inc.		48,000		2,030,880
NII Holdings, Inc.*		85,000		6,975,950
				9,006,830
TOTAL COMMON STOCKS - 83.54%			$	380,769,647
(Cost: $341,841,862)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Capital Equipment - 0.55%
Deere (John) Capital Corporation,
5.07%, 10-19-07	$	2,500	2,493,662
Electrical Equipment - 1.09%
W.W. Grainger, Inc.,
4.78%, 10-24-07		5,000	4,984,731
Finance Companies - 2.38%
BP Capital Markets p.l.c.,
4.76%, 10-15-07		3,000	2,994,447
Prudential Funding LLC,
5.15%, 10-11-07		4,000	3,994,278
Toyota Motor Credit Corporation,
4.78%, 11-16-07		3,900	3,876,180
			10,864,905

Food and Related - 1.09%
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
5.4%, 10-12-07	3,000		2,995,050
Hershey Company (The),
5.3%, 10-15-07	2,000		1,995,878
			4,990,928
Health Care - Drugs - 0.25%
Abbott Laboratories,
4.99%, 10-23-07	1,131		1,127,551
Health Care - General - 1.09%
Johnson & Johnson,
4.72%, 11-20-07	5,000		4,967,222
Household - General Products - 0.61%
Clorox Co.,
5.8%, 10-22-07	1,376		1,371,344
Procter & Gamble International Funding S.C.A.       (Procter & Gamble Company (The)),
4.8%, 10-17-07	1,393		1,390,028
			2,761,372
Leisure Time Industry - 0.66%
Walt Disney Company (The),
5.2%, 10-11-07	3,000		2,995,667
Mining - 0.88%
BHP Billiton Finance (USA) Limited (BHP Billiton Limited),
5.0%, 10-1-07	4,000		4,000,000
Multiple Industry - 1.31%
Honeywell International Inc.,
4.76%, 11-21-07	6,000		5,959,540
Publishing - 1.38%
Gannett Co., Inc.:
5.8%, 10-5-07	3,000		2,998,067
5.35%, 10-25-07	3,320		3,308,159
			6,306,226
Restaurants - 1.80%
Starbucks Corporation:
5.5%, 10-1-07	4,722		4,722,000
5.4%, 10-9-07	3,500		3,495,800
			8,217,800
Utilities - Electric - 1.61%
Detroit Edison Co.,
5.55%, 10-11-07	1,500		1,497,687
PacifiCorp,
5.32%, 10-1-07	5,839		5,839,000
			7,336,687
Utilities - Gas and Pipeline - 0.44%
Michigan Consolidated Gas Co.,
5.275%, 10-10-07	2,000		1,997,362
TOTAL SHORT-TERM SECURITIES - 15.14%		$	69,003,653
(Cost: $69,003,653)
TOTAL INVESTMENT SECURITIES - 98.68%		$	449,773,300
(Cost: $410,845,515)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.32%			6,023,660
NET ASSETS - 100.00%		$	455,796,960

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit.

*No dividends were paid during the preceding 12 months.

(A)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been determined to be illiquid under guidelines established by the Board of Directors. At September 30, 2007, the total value of this security amounted to 0.10% of net assets.

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

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

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

ASSETS
Investment securities - at value (cost - $410,846) (Notes 1 and 3)	$	449,773
Receivables:
Fund shares sold		11,153
Dividends and interest		232
Prepaid and other assets		57
Total assets		461,215
LIABILITIES
Payable for investment securities purchased		4,731
Payable to Fund shareholders		316
Due to custodian		245
Accrued shareholder servicing (Note 2)		51
Accrued management fee (Note 2)		24
Accrued distribution and service fees (Note 2)		14
Accrued accounting services fee (Note 2)		11
Other		26
Total liabilities		5,418
Total net assets	$	455,797
NET ASSETS
$0.01 par value capital stock:
Capital stock	$	394
Additional paid-in capital		413,073
Accumulated undistributed income:
Accumulated undistributed net investment income		14
Accumulated undistributed net realized gain on                 investment transactions		3,388
Net unrealized appreciation in value of investments		38,928
Net assets applicable to outstanding units of capital	$	455,797
Net asset value per share (net assets divided by shares outstanding):
Class A	$11.69
Class B	$10.87
Class C	$10.91
Class E	$11.69
Class I	$11.73
Class Y	$11.71
Capital shares outstanding:
Class A		27,614
Class B		905
Class C		5,728
Class E		47
Class I		993
Class Y		4,142
Capital shares authorized		300,000

See Notes to Financial Statements.

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

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $8)	$	898
Interest and amortization		563
Total income		1,461
Expenses (Note 2):
Investment management fee		706
Service fee:
Class A		198
Class B		7
Class C		37
Shareholder servicing:
Class A		134
Class B		13
Class C		22
Class E		1
Class I		2
Class Y		22
Distribution fee:
Class B		21
Class C		111
Class E		––	*
Class Y		33
Accounting services fee		44
Registration fees		44
Audit fees		14
Custodian fees		10
Legal fees		1
Other		25
Total		1,445
Less voluntary waiver of expenses (Note 2)		(1	)
Total expenses		1,444
Net investment income		17
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		2,951
Unrealized appreciation in value of investments during the period		30,563
Net gain on investments		33,514
Net increase in net assets resulting from operations	$	33,531

*Not shown due to rounding.

See Notes to Financial Statements.

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

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007
INCREASE IN NET ASSETS
Operations:
Net investment income (loss)		$	17		$	(62	)
Realized net gain on investments			2,951			2,819
Unrealized appreciation			30,563			2,554
Net increase in net assets resulting                      from operations			33,531			5,311
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(––	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(––	)
			(––	)		(––	)
Capital share transactions (Note 5)			338,856			32,542
Total increase			372,387			37,853
NET ASSETS
Beginning of period			83,410			45,557
End of period		$	455,797		$	83,410
Undistributed net investment income (loss)		$	14		$	(3	)

(1)See "Financial Highlights" on pages 52 - 57.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	10.09		$	9.16		$	7.99		$	7.52		$	5.73		$	6.43
Income (loss) from       investment operations:
Net investment             income (loss)			0.01	(2)		0.00	(2)	(0.03		)(2)	(0.02		)	(0.06		)	(0.03		)
Net realized and unrealized             gain (loss) on investments			1.59	(2)		0.93	(2)		1.20	(2)		0.49			1.85		(0.67		)
Total from investment operations			1.60			0.93			1.17			0.47			1.79		(0.70		)
Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Total distributions		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Net asset value, end of period		$	11.69		$	10.09		$	9.16		$	7.99		$	7.52		$	5.73
Total return(3)			15.86	%		10.15	%	14.64		%		6.25	%	31.24		%	-10.89		%
Net assets, end of period       (in millions)		$323			$58			$36			$11			$6			$4
Ratio of expenses to average       net assets including voluntary       expense waiver			1.18	%(4)		1.35	%		1.30	%		1.19	%		1.47	%		1.50	%
Ratio of net investment       income (loss) to average       net assets including       voluntary expense waiver			0.14	%(4)		0.05	%	-0.29		%		0.03	%	-1.05		%	-0.67		%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			1.18	%(4)(5)		1.40	%		1.55	%		1.84	%		2.12	%		2.15	%
Ratio of net investment       income (loss) to average       net assets excluding       voluntary expense waiver			0.14	%(4)(5)		0.00	%*	-0.54		%	-0.62		%	-1.70		%	-1.32		%
Portfolio turnover rate			34	%		95	%		60	%		62	%		115	%		145	%

*Not shown due to rounding.

(1)Capital Appreciation Fund (formerly Tax-Managed Equity Fund) changed its name effective March 31, 2005.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	9.43		$	8.65		$	7.62		$	7.26		$	5.58		$	6.31
Income (loss) from       investment operations:				)(2)
Net investment loss			(0.05		(0.09		)(2)	(0.11		)(2)	(0.01		)	(0.09		)	(0.11		)
Net realized and unrealized             gain (loss) on investments			1.49	(2)		0.87	(2)		1.14	(2)		0.37			1.77		(0.62		)
Total from investment operations			1.44			0.78			1.03			0.36			1.68		(0.73		)
Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Total distributions		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Net asset value, end of period		$	10.87		$	9.43		$	8.65		$	7.62		$	7.26		$	5.58
Total return			15.27	%		9.02	%	13.52		%		4.96	%	30.11		%	-11.57		%
Net assets, end of period       (in thousands)		$9,835		$3,654			$2,173			$1,068				$538			$247
Ratio of expenses to average       net assets including       voluntary expense waiver			2.24	%(3)		2.47	%		2.31	%		2.03	%		2.28	%		2.47	%
Ratio of net investment loss       to average net assets including       voluntary expense waiver			-0.93	%(3)	-1.07		%	-1.30		%	-0.81		%	-1.87		%	-1.63		%
Ratio of expenses to average       net assets excluding voluntary       expense waiver			2.24	%(3)(4)		2.51	%		2.56	%		2.68	%		2.93	%		3.12	%
Ratio of net investment loss       to average net assets excluding       voluntary expense waiver			-0.93	%(3)(4)	-1.11		%	-1.55		%	-1.46		%	-2.52		%	-2.28		%
Portfolio turnover rate			34	%		95	%		60	%		62	%		115	%		145	%

(1)Capital Appreciation Fund (formerly Tax-Managed Equity Fund) changed its name effective March 31, 2005.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004				2003
Net asset value,       beginning of period		$	9.45		$	8.64		$	7.60		$	7.24		$	5.57			$	6.32
Income (loss) from       investment operations:
Net investment income (loss)			(0.03	)(2)	(0.07		)(2)	(0.09		)(2)		0.03		(0.11		)		(0.12		)
Net realized and unrealized             gain (loss) on investments			1.49	(2)		0.88	(2)		1.13	(2)		0.33			1.78			(0.63		)
Total from investment operations			1.46			0.81			1.04			0.36			1.67			(0.75		)
Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Total distributions		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Net asset value end of period		$	10.91		$	9.45		$	8.64		$	7.60		$	7.24			$	5.57
Total return			15.45	%		9.38	%	13.68		%		4.97	%	29.98		%	-11.87			%
Net assets, end of period       (in millions)		$62			$11			$7			$2			$1				$1
Ratio of expenses to average net       assets including voluntary       expense waiver			1.90	%(3)		2.14	%		2.07	%		2.15	%		2.46	%			2.64	%
Ratio of net investment loss to       average net assets including       voluntary expense waiver			-0.58	%(3)	-0.75		%	-1.05		%	-0.96		%	-2.05		%		-1.81		%
Ratio of expenses to average net       assets excluding voluntary       expense waiver			1.90	%(3)(4)		2.18	%		2.32	%		2.80	%		3.11	%			3.29	%
Ratio of net investment loss to       average net assets excluding       voluntary expense waiver			-0.58	%(3)(4)	-0.79		%	-1.30		%	-1.61		%	-2.70		%		-2.46		%
Portfolio turnover rate			34	%		95	%		60	%		62	%		115	%			145	%

(1)Capital Appreciation Fund (formerly Tax-Managed Equity Fund) changed its name effective March 31, 2005.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through 9-30-07
Net asset value, beginning of period		$	10.09
Income from investment operations:
Net investment income			0.00	(2)*
Net realized and unrealized gain on investments			1.60	(2)
Total from investment operations			1.60
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	11.69
Total return(3)			15.51	%
Net assets, end of period (in millions)		$1
Ratio of expenses to average net assets       including voluntary expense waiver			1.35	%(4)
Ratio of net investment loss to average net assets       including voluntary expense waiver			-0.02	%(4)
Ratio of expenses to average net assets       excluding voluntary expense waiver			1.81	%(4)
Ratio of net investment loss to average net assets       excluding voluntary expense waiver			-0.48	%(4)
Portfolio turnover rate			34	%(5)

*Not shown due to rounding.

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through 9-30-07
Net asset value, beginning of period		$	10.11
Income from investment operations:
Net investment income			0.03	(2)
Net realized and unrealized gain on investments			1.59	(2)
Total from investment operations			1.62
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	11.73
Total return			15.68	%
Net assets, end of period (in millions)		$12
Ratio of expenses to average net assets			1.08	%(3)
Ratio of net investment income to average net assets			0.48	%(3)
Portfolio turnover rate			34	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended					For the fiscal year ended March 31,						For the period from 9-15-04(2) to
	9-30-07					2007			2006			3-31-05
Net asset value, beginning of period		$	10.10			$	9.16		$	7.99			$	7.33
Income (loss) from investment operations:
Net investment income (loss)			0.01	(3)			0.01	(3)	(0.02		)(3)			0.03
Net realized and unrealized gain             on investments			1.60	(3)			0.93	(3)		1.19	(3)			0.63
Total from investment operations			1.61				0.94			1.17				0.66
Less distributions from:
Net investment income		(0.00		)		(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)		(0.00		)	(0.00		)		(0.00		)
Total distributions		(0.00		)		(0.00		)	(0.00		)		(0.00		)
Net asset value, end of period		$	11.71			$	10.10		$	9.16			$	7.99
Total return			15.83	%			10.37	%	14.64		%			9.00	%
Net assets, end of period (in thousands)	$48,513				$10,049				$798				$108
Ratio of expenses to average net assets       including voluntary expense waiver			1.17	%(4)			1.27	%		1.20	%			1.11	%(4)
Ratio of net investment income (loss) to       average net assets including voluntary       expense waiver			0.14	%(4)			0.16	%	-0.23		%			0.47	%(4)
Ratio of expenses to average net assets       excluding voluntary expense waiver			1.17	%(4)(5)			1.31	%		1.45	%			1.76	%(4)
Ratio of net investment income (loss) to       average net assets excluding voluntary       expense waiver			0.14	%(4)(5)			0.12	%	-0.48		%		-0.18		%(4)
Portfolio turnover rate			34	%			95	%		60	%			62	%(6)

(1)Capital Appreciation Fund (formerly Tax-Managed Equity Fund) changed its name effective March 31, 2005.

(2)Commencement of operations of the class.

(3)Based on average weekly shares outstanding.

(4)Annualized.

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

(6)For the fiscal year ended March 31, 2005.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY CORE EQUITY FUND

Portfolio Highlights

On September 30, 2007, Ivy Core Equity Fund had net assets totaling $279,686,180 invested in a diversified portfolio of:

94.15%	Domestic Common Stocks
4.34%	Foreign Common Stocks
1.51%	Cash and Cash Equivalents

Sector Weightings

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

Technology Stocks	$	30.55
Financial Services Stocks	$	12.20
Energy Stocks	$	9.96
Capital Goods Stocks	$	8.75
Health Care Stocks	$	6.94
Consumer Nondurables Stocks	$	6.75
Raw Materials Stocks	$	6.37
Retail Stocks	$	4.80
Utilities Stocks	$	3.65
Consumer Durables Stocks	$	2.71
Transportation Stocks	$	2.32
Multi Industry Stocks	$	2.16
Cash and Cash Equivalents	$	1.51
Consumer Services Stocks	$	1.33

The Investments of Ivy Core Equity Fund
September 30, 2007                                                                                                     (Unaudited)
COMMON STOCKS	Shares			Value
Aircraft - 5.78%
Boeing Company (The)		127,200	$	13,354,728
Raytheon Company		44,200		2,820,844
				16,175,572
Apparel - 0.98%
NIKE, Inc., Class B		46,900		2,751,154
Beverages - 4.67%
Coca-Cola Company (The)		130,600		7,505,582
PepsiCo, Inc.		75,666		5,543,291
				13,048,873
Capital Equipment - 5.96%
Deere & Company		93,511		13,878,903
Foster Wheeler Ltd.*		21,200		2,782,182
				16,661,085
Chemicals - Petroleum and Inorganic - 3.96%
E.I. du Pont de Nemours and Company		75,300		3,731,868
Monsanto Company		85,600		7,339,344
				11,071,212
Chemicals - Specialty - 2.41%
Air Products and Chemicals, Inc.		69,059		6,751,208
Communications Equipment - 3.89%
Cisco Systems, Inc.*		215,400		7,135,125
Nokia Corporation, Series A, ADR		98,800		3,747,484
				10,882,609
Computers - Main and Mini - 5.57%
Hewlett-Packard Company		204,300		10,172,097
Xerox Corporation*		311,100		5,394,474
				15,566,571
Computers - Micro - 3.15%
Apple Inc.*		40,400		6,200,794
Dell Inc.*		94,500		2,607,727
				8,808,521
Computers - Peripherals - 2.83%
Adobe Systems Incorporated*		181,100		7,908,637
Defense - 4.25%
General Dynamics Corporation		140,900		11,901,823
Electronic Components - 4.09%
Intel Corporation		212,000		5,483,380
SanDisk Corporation*		108,200		5,967,230
				11,450,610
Electronic Instruments - 0.99%
Thermo Fisher Scientific Inc.*		47,900		2,764,788
Finance Companies - 3.42%
Fannie Mae		157,100		9,553,251
Food and Related - 1.10%
Wm. Wrigley Jr. Company		47,800		3,070,194
Health Care - Drugs - 6.94%
Abbott Laboratories		184,100		9,871,442
Merck & Co., Inc.		104,000		5,375,760
Schering-Plough Corporation		131,400		4,156,182
				19,403,384
Hotels and Gaming - 1.33%
Las Vegas Sands, Inc.*		27,800		3,709,076
Insurance Property and Casualty - 1.52%
Ambac Financial Group, Inc.		67,600		4,252,716
Metal Fabrication - 0.76%
Loews Corporation, Carolina Group		26,000		2,137,980
Motor Vehicles - 2.71%
Ford Motor Company*		893,400		7,584,966
Multiple Industry - 2.16%
Altria Group, Inc.		86,800		6,035,204
Non-Residential Construction - 2.03%
Fluor Corporation		39,500		5,687,210
Petroleum - International - 3.24%
Exxon Mobil Corporation		97,779		9,050,424
Petroleum - Services - 6.72%
Schlumberger Limited		60,076		6,307,980
Smith International, Inc.		44,000		3,141,600
Transocean Inc.*		33,200		3,753,260
Weatherford International Ltd.*		83,400		5,602,812
				18,805,652
Railroad - 2.32%
Union Pacific Corporation		57,500		6,500,950
Restaurants - 2.03%
McDonald's Corporation		58,400		3,181,048
YUM! Brands, Inc.		74,200		2,510,186
				5,691,234
Retail - General Merchandise - 1.00%
Target Corporation		43,900		2,790,723
Retail - Specialty Stores - 1.77%
Tiffany & Co.		94,500		4,947,075
Security and Commodity Brokers - 7.26%
Charles Schwab Corporation (The)		387,400		8,375,588
J.P. Morgan Chase & Co.		96,900		4,439,958
Prudential Financial, Inc.		76,800		7,494,144
				20,309,690
Utilities - Electric - 2.36%
Mirant Corporation*		162,200		6,598,296
Utilities - Telephone - 1.29%
Verizon Communications Inc.		81,300		3,599,964
TOTAL COMMON STOCKS - 98.49%			$	275,470,652
(Cost: $207,925,450)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Household - General Products - 0.36%
Fortune Brands Inc.,
5.55%, 10-1-07	$	1,016		1,016,000
Publishing - 0.89%
Gannett Co., Inc.,
5.45%, 10-16-07		2,500		2,494,323
Utilities - Electric - 0.54%
Detroit Edison Co.,
5.55%, 10-11-07		1,500		1,497,688
TOTAL SHORT-TERM SECURITIES - 1.79%			$	5,008,011
(Cost: $5,008,011)
TOTAL INVESTMENT SECURITIES - 100.28%			$	280,478,663
(Cost: $212,933,461)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.28%)				(792,483	)
NET ASSETS - 100.00%			$	279,686,180

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit.

*No dividends were paid during the preceding 12 months.

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

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

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

ASSETS
Investment securities - at value (cost - $212,933) (Notes 1 and 3)	$	280,479
Receivables:
Investment securities sold		1,227
Dividends and interest		374
Fund shares sold		115
Prepaid and other assets		37
Total assets		282,232
LIABILITIES
Payable for investment securities purchased		1,649
Payable to Fund shareholders		666
Accrued shareholder servicing (Note 2)		80
Due to custodian		20
Accrued management fee (Note 2)		16
Accrued distribution fee (Note 2)		11
Accrued accounting services fee (Note 2)		8
Accrued service fee (Note 2)		5
Other		91
Total liabilities		2,546
Total net assets	$	279,686
NET ASSETS
$0.01 par value capital stock:
Capital stock	$	25
Additional paid-in capital		196,317
Accumulated undistributed income:
Accumulated undistributed net investment income		339
Accumulated undistributed net realized gain on                 investment transactions		15,457
Net unrealized appreciation in value of investments		67,548
Net assets applicable to outstanding units of capital	$	279,686
Net asset value per share (net assets divided by shares outstanding):
Class A	$11.44
Class B	$10.61
Class C	$10.73
Class E	$11.46
Class I	$12.13
Class Y	$11.98
Capital shares outstanding:
Class A		8,588
Class B		1,066
Class C		15,589
Class E		42
Class I		21
Class Y		182
Capital shares authorized		400,000

See Notes to Financial Statements.

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

INVESTMENT INCOME
Income (Note 1B):
Dividends (net of foreign withholding taxes of $34)	$	2,774
Interest and amortization		143
Total income		2,917
Expenses (Note 2):
Investment management fee		941
Distribution fee:
Class B		41
Class C		617
Class E		––	*
Class Y		2
Shareholder servicing:
Class A		129
Class B		24
Class C		240
Class E		1
Class I		––	*
Class Y		2
Service fee:
Class A		113
Class B		14
Class C		206
Accounting services fee		49
Audit fees		20
Custodian fees		7
Legal fees		2
Other		101
Total expenses		2,509
Net investment income		408
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		5,678
Realized net loss on foreign currency transactions		(2	)
Realized net gain on investments		5,676
Unrealized appreciation in value of investments during the period		28,482
Net gain on investments		34,158
Net increase in net assets resulting from operations	$	34,566

*Not shown due to rounding.

See Notes to Financial Statements.

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

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	408		$	(823	)
Realized net gain on investments			5,676			35,684
Unrealized appreciation (depreciation)			28,482			(15,215	)
Net increase in net assets resulting                      from operations			34,566			19,646
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(––	)
Realized gains on investment transactions:
Class A			(––	)		(7,910	)
Class B			(––	)		(1,144	)
Class C			(––	)		(17,672	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(147	)
			(––	)		(26,873	)
Capital share transactions (Note 5)			(10,433	)		2,844
Total increase (decrease)			24,133			(4,383	)
NET ASSETS
Beginning of period			255,553			259,936
End of period		$	279,686		$	255,553
Undistributed net investment income (loss)		$	339		$	(67	)

(1)See "Financial Highlights" on pages 68 - 71.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	10.03		$	10.24		$	9.03		$	8.08		$	6.63		$	8.89
Income (loss) from       investment operations:
Net investment income (loss)			0.03			(0.00	)		(0.00	)		0.02			0.01		(0.08		)
Net realized and unrealized             gain (loss) on investments			1.38			0.88			1.21			0.93			1.44		(2.18		)
Total from investment operations			1.41			0.88			1.21			0.95			1.45		(2.26		)
Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(1.09		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Total distributions		(0.00		)	(1.09		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Net asset value, end of period		$	11.44		$	10.03		$	10.24		$	9.03		$	8.08		$	6.63
Total return(1)			14.06	%		8.54	%		13.40	%	11.76		%	21.87		%	-25.42		%
Net assets, end of period       (in millions)		$98			$83			$74			$65			$75			$13
Ratio of expenses to       average net assets			1.37	%(2)		1.37	%		1.42	%		1.50	%		1.46	%		1.31	%
Ratio of net investment income       (loss) to average net assets			0.78	%(2)		0.21	%		-0.03	%		0.07	%		0.24	%		0.28	%
Portfolio turnover rate			44	%		114	%		79	%		42	%		59	%		39	%

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

(2)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	9.34		$	9.70		$	8.63		$	7.78		$	6.45		$	8.74
Income (loss) from       investment operations:
Net investment loss		(0.01		)	(0.07		)	(0.10		)	(0.07		)	(0.05		)	(0.06		)
Net realized and unrealized             gain (loss) on investments			1.28			0.80			1.17			0.92			1.38		(2.23		)
Total from investment operations			1.27			0.73			1.07			0.85			1.33		(2.29		)
Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(1.09		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Total distributions		(0.00		)	(1.09		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Net asset value, end of period		$	10.61		$	9.34		$	9.70		$	8.63		$	7.78		$	6.45
Total return			13.60	%		7.45	%	12.40		%	10.93		%	20.62		%	-26.20		%
Net assets, end of period       (in millions)		$11			$11			$11			$12			$12			$5
Ratio of expenses to       average net assets			2.27	%(1)		2.29	%		2.32	%		2.36	%		2.42	%		2.36	%
Ratio of net investment       loss to average net assets			-0.11	%(1)	-0.71		%	-0.94		%	-0.77		%	-0.66		%	-0.76		%
Portfolio turnover rate			44	%		114	%		79	%		42	%		59	%		39	%

(1)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	9.44		$	9.77		$	8.68		$	7.82		$	6.48		$	8.76
Income (loss) from       investment operations:
Net investment loss		(0.01		)	(0.06		)	(0.09		)	(0.06		)	(0.04		)	(0.04		)
Net realized and unrealized             gain (loss) on investments			1.30			0.82			1.18			0.92			1.38		(2.24		)
Total from investment operations			1.29			0.76			1.09			0.86			1.34		(2.28		)
Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Capital gains		(0.00		)	(1.09		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Total distributions		(0.00		)	(1.09		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Net asset value, end of period		$	10.73		$	9.44		$	9.77		$	8.68		$	7.82		$	6.48
Total return			13.67	%		7.71	%	12.56		%	11.00		%	20.68		%	-26.03		%
Net assets, end of period       (in millions)		$168			$159			$173			$183			$200			$200
Ratio of expenses to       average net assets			2.12	%(1)		2.13	%		2.17	%		2.22	%		2.27	%		2.18	%
Ratio of net investment income       (loss) to average net assets			0.06	%(1)	-0.55		%	-0.79		%	-0.63		%	-0.45		%	-0.58		%
Portfolio turnover rate			44	%		114	%		79	%		42	%		59	%		39	%

(1)Annualized.

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through 9-30-07
Net asset value, beginning of period		$	10.03
Income from investment operations:
Net investment income			0.03	(2)
Net realized and unrealized gain on investments			1.40	(2)
Total from investment operations			1.43
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	11.46
Total return(3)			14.03	%
Net assets, end of period (in thousands)		$486
Ratio of expenses to average net assets			1.58	%(4)
Ratio of net investment income to average net assets			0.17	%(4)
Portfolio turnover rate			44	%(5)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through 9-30-07
Net asset value, beginning of period		$	10.49
Income from investment operations:
Net investment income			0.11	(2)
Net realized and unrealized gain on investments			1.53	(2)
Total from investment operations			1.64
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	12.13
Total return			15.30	%
Net assets, end of period (in thousands)		$255
Ratio of expenses to average net assets			1.03	%(3)
Ratio of net investment income to average net assets			1.14	%(3)
Portfolio turnover rate			44	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004				2003
Net asset value,       beginning of period		$	10.49		$	10.65		$	9.38		$	8.37		$	6.86			$	9.19
Income (loss) from       investment operations:
Net investment income			0.07	(1)		0.04	(1)		0.09			0.25			0.05				0.04
Net realized and unrealized             gain (loss) on investments			1.42	(1)		0.89	(1)		1.18			0.76			1.46			(2.37		)
Total from investment operations			1.49			0.93			1.27			1.01			1.51			(2.33		)
Less distributions from:
Net investment income		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains		(0.00		)	(1.09		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Total distributions		(0.00		)	(1.09		)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Net asset value, end of period		$	11.98		$	10.49		$	10.65		$	9.38		$	8.37			$	6.86
Total return			14.20	%		8.69	%		13.54	%	12.07		%	22.01		%	-25.35			%
Net assets, end of period       (in millions)		$2			$3			$2			$2			$2				$2
Ratio of expenses to       average net assets			1.23	%(2)		1.21	%		1.22	%		1.24	%		1.26	%			1.20	%
Ratio of net investment income       to average net assets			1.27	%(2)		0.35	%		0.16	%		0.34	%		0.61	%			0.40	%
Portfolio turnover rate			44	%		114	%		79	%		42	%		59	%			39	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY ENERGY FUND

Portfolio Highlights

On September 30, 2007, Ivy Energy Fund had net assets totaling $21,528,208 invested in a diversified portfolio of:

71.15%	Domestic Common Stocks
18.51%	Foreign Common Stocks
10.34%	Cash and Cash Equivalents

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

Sector Weightings

Energy Stocks	$	62.81
Capital Goods Stocks	$	12.92
Cash and Cash Equivalents	$	10.34
Utilities Stocks	$	8.06
Miscellaneous Stocks	$	3.15
Business Equipment and Services Stocks	$	2.72

Country Weightings

North America	$	75.97
United States	$	71.15
Canada	$	4.82
Cash and Cash Equivalents	$	10.34
Bahamas/Caribbean	$	7.60
Bermuda	$	4.58
Cayman Islands	$	3.02
Europe (1)	$	3.75
Pacific Basin (2)	$	1.80
South America (3)	$	0.54

(1)Includes $1.36 France, $0.71 Norway and $1.68 United Kingdom.

(2)Includes $0.60 China and $1.20 Hong Kong.

(3)Includes $0.54 Brazil.

The Investments of Ivy Energy Fund
September 30, 2007                                                                                                     (Unaudited)
COMMON STOCKS	Shares			Value
Business Equipment and Services - 2.72%
Bucyrus International, Inc., Class A		3,300	$	240,619
Jacobs Engineering Group Inc.*		4,550		343,889
				584,508
Capital Equipment - 6.68%
Cameron International Corporation*		6,825		629,879
Shaw Group Inc. (The)*		4,125		239,662
SunPower Corporation, Class A*		4,075		337,145
Suntech Power Holdings Co., Ltd., ADR*		5,800		231,420
				1,438,106
Coal - 1.90%
Foundation Coal Holdings, Inc.		3,425		134,260
Peabody Energy Corporation		5,750		275,252
				409,512
Electrical Equipment - 3.14%
First Solar, Inc.*		5,750		676,372
Electronic Instruments - 0.37%
Energy Conversion Devices, Inc.*		3,500		79,485
Mining - 1.66%
Arch Coal, Inc.		5,525		186,413
Cameco Corporation		3,700		171,088
				357,501
Multiple Industry - 1.12%
Continental Resources, Inc.*	13,300			241,262
Non-Residential Construction - 3.10%
Fluor Corporation		3,200		460,736
Technip SA, ADR		2,325		206,693
				667,429
Petroleum - Canada - 1.09%
Suncor Energy Inc.		2,475		234,655
Petroleum - Domestic - 4.29%
ENSCO International Incorporated		4,625		259,462
Sunoco, Inc.		2,800		198,184
Valero Energy Corporation		3,575		240,169
XTO Energy Inc.		3,650		225,716
				923,531
Petroleum - International - 28.47%
Anadarko Petroleum Corporation		6,125		329,219
Apache Corporation		6,100		549,366
BP p.l.c., ADR		5,225		362,354
CNOOC Limited, ADR		1,550		257,967
ConocoPhillips		4,500		394,965
Devon Energy Corporation		5,425		451,360
EOG Resources, Inc.		4,700		339,951
Exxon Mobil Corporation		7,000		647,920
Hess Corporation		2,975		197,927
Marathon Oil Corporation		5,850		333,567
Newfield Exploration Company*		9,200		443,072
Noble Energy, Inc.		6,575		460,513
Occidental Petroleum Corporation		6,025		386,082
PetroChina Company Limited, ADR		700		129,577
Petroleo Brasileiro S.A. - Petrobras, ADR		1,550		117,025
Statoil ASA, ADR		4,500		152,640
TOTAL S.A., ADR		1,050		85,082
Talisman Energy Inc.	15,800			311,260
Ultra Petroleum Corp.*		2,900		179,916
				6,129,763
Petroleum - Services - 27.06%
BJ Services Company		8,850		234,967
Baker Hughes Incorporated		6,650		600,960
Complete Production Services, Inc.*	13,850			283,648
FMC Technologies, Inc.*		2,650		152,799
Grant Prideco, Inc.*		7,450		406,174
Halliburton Company		7,800		299,520
Hercules Offshore, Inc.*		5,176		135,094
Nabors Industries Ltd.*	14,550			447,704
National Oilwell Varco, Inc.*		6,800		982,600
Schlumberger Limited		7,775		816,375
Smith International, Inc.		7,150		510,510
Transocean Inc.*		3,700		418,285
Weatherford International Ltd.*		8,000		537,440
				5,826,076
Utilities - Electric - 5.50%
Entergy Corporation		3,825		414,209
Exelon Corporation		4,875		367,380
Mirant Corporation*		4,100		166,788
NRG Energy, Inc.*		5,550		234,709
				1,183,086
Utilities - Gas and Pipeline - 2.56%
Enbridge Inc.		8,750		320,863
Southwestern Energy Company*		5,500		230,175
				551,038
TOTAL COMMON STOCKS - 89.66%			$	19,302,324
(Cost: $15,933,386)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Finance Companies - 3.71%
Prudential Funding LLC,
5.15%, 10-11-07	$	800		798,856
Household - General Products - 3.71%
Fortune Brands Inc.,
5.55%, 10-1-07		800		800,000
Mining - 3.58%
BHP Billiton Finance (USA) Limited (BHP Billiton Limited),
5.0%, 10-1-07		770		770,000
TOTAL SHORT-TERM SECURITIES - 11.00%			$	2,368,856
(Cost: $2,368,856)
TOTAL INVESTMENT SECURITIES - 100.66%			$	21,671,180
(Cost: $18,302,242)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.66%)				(142,972	)
NET ASSETS - 100.00%			$	21,528,208

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit.

*No dividends were paid during the preceding 12 months.

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

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

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

ASSETS
Investment securities - at value (cost - $18,302) (Notes 1 and 3)	$	21,671
Cash		––	*
Receivables:
Fund shares sold		146
Dividends and interest		10
Prepaid and other assets		31
Total assets		21,858
LIABILITIES
Payable for investment securities purchased		303
Accrued shareholder servicing (Note 2)		5
Payable to Fund shareholders		3
Accrued accounting services fee (Note 2)		1
Accrued distribution and service fees (Note 2)		1
Other		17
Total liabilities		330
Total net assets	$	21,528
NET ASSETS
$0.01 par value capital stock:
Capital stock	$	16
Additional paid-in capital		18,054
Accumulated undistributed income:
Accumulated undistributed net investment loss		(7	)
Accumulated undistributed net realized gain on investment transactions		96
Net unrealized appreciation in value of investments		3,369
Net assets applicable to outstanding units of capital	$	21,528
Net asset value per share (net assets divided by shares outstanding):
Class A	$13.09
Class B	$12.97
Class C	$12.98
Class E	$13.11
Class I	$13.15
Class Y	$13.14
Capital shares outstanding:
Class A		1,267
Class B		111
Class C		167
Class E		10
Class I		9
Class Y		83
Capital shares authorized	250,000

*Not shown due to rounding.

See Notes to Financial Statements.

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

INVESTMENT LOSS
Income (Note 1B):
Dividends (net of foreign withholding taxes of $2)	$	57
Interest and amortization		54
Total income		111
Expenses (Note 2):
Investment management fee		60
Registration fees		35
Shareholder servicing:
Class A		19
Class B		2
Class C		2
Class E		––	*
Class I		––	*
Class Y		1
Service fee:
Class A		13
Class B		1
Class C		2
Audit fees		11
Distribution fee:
Class B		4
Class C		6
Class E		––	*
Class Y		1
Prospectus printing		8
Accounting services fee		6
Custodian fees		3
Legal fees		––	*
Other		4
Total		178
Less voluntary waiver of investment management fee (Note 2)		(60	)
Total expenses		118
Net investment loss		(7	)
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		96
Unrealized appreciation in value of investments during the period		3,043
Net gain on investments		3,139
Net increase in net assets resulting from operations	$	3,132

*Not shown due to rounding.

See Notes to Financial Statements.

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

	For the six months ended September 30,				For the period from 4-3-06(1) to
	2007				3-31-07
INCREASE IN NET ASSETS
Operations:
Net investment loss		$	(7	)	$	(71	)
Realized net gain on investments			96			15
Unrealized appreciation			3,043			326
Net increase in net assets resulting                      from operations			3,132			270
Distributions to shareholders from (Note 1F):(2)
Net investment income:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(––	)
Realized gains on investment transactions:
Class A			(––	)		(––	)
Class B			(––	)		(––	)
Class C			(––	)		(––	)
Class E			(––	)		NA
Class I			(––	)		NA
Class Y			(––	)		(––	)
			(––	)		(––	)
Capital share transactions (Note 5)			10,806			7,320
Total increase			13,938			7,590
NET ASSETS
Beginning of period			7,590			––
End of period		$	21,528		$	7,590
Undistributed net investment income		$	(7	)	$	––

(1)Commencement of operations.

(2)See "Financial Highlights" on pages 79 - 84.

See Notes to Financial Statements.

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

	For the six months ended				For the period from 4-3-06(1) to
	9-30-07				3-31-07
Net asset value, beginning of period		$	10.35			$	10.00
Income (loss) from investment operations:
Net investment income (loss)			0.00				(0.09	)
Net realized and unrealized gain on investments			2.74				0.44
Total from investment operations			2.74				0.35
Less distributions from:
Net investment income			(0.00	)			(0.00	)
Capital gains			(0.00	)			(0.00	)
Total distributions			(0.00	)			(0.00	)
Net asset value, end of period		$	13.09			$	10.35
Total return(2)			26.47	%			3.50	%
Net assets, end of period (in millions)		$17				$5
Ratio of expenses to average net assets       including voluntary expense waiver			1.56	%(3)			2.74	%(3)
Ratio of net investment income (loss) to       average net assets including voluntary       expense waiver			0.01	%(3)			-1.30	%(3)
Ratio of expenses to average net assets       excluding voluntary expense waiver			2.41	%(3)			3.58	%(3)
Ratio of net investment loss to average       net assets excluding voluntary expense waiver			-0.84	%(3)			-2.14	%(3)
Portfolio turnover rate			10	%			11	%

(1)Commencement of operations of the class.

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

(3)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the period from 4-3-06(1) to
	9-30-07				3-31-07
Net asset value, beginning of period		$	10.29			$	10.00
Income (loss) from investment operations:
Net investment loss			(0.06	)			(0.13	)
Net realized and unrealized gain on investments			2.74				0.42
Total from investment operations			2.68				0.29
Less distributions from:
Net investment income			(0.00	)			(0.00	)
Capital gains			(0.00	)			(0.00	)
Total distributions			(0.00	)			(0.00	)
Net asset value, end of period		$	12.97			$	10.29
Total return			26.05	%			2.90	%
Net assets, end of period (in millions)		$1				$1
Ratio of expenses to average net assets       including voluntary expense waiver			2.27	%(2)			3.13	%(2)
Ratio of net investment loss to average net       assets including voluntary expense waiver			-0.73	%(2)			-1.64	%(2)
Ratio of expenses to average net assets       excluding voluntary expense waiver			3.12	%(2)			3.97	%(2)
Ratio of net investment loss to average net       assets excluding voluntary expense waiver			-1.58	%(2)			-2.48	%(2)
Portfolio turnover rate			10	%			11	%

(1)Commencement of operations of the class.

(2)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the period from 4-3-06(1) to
	9-30-07				3-31-07
Net asset value, beginning of period		$	10.30			$	10.00
Income (loss) from investment operations:
Net investment loss			(0.05	)			(0.14	)
Net realized and unrealized gain on investments			2.73				0.44
Total from investment operations			2.68				0.30
Less distributions from:
Net investment income			(0.00	)			(0.00	)
Capital gains			(0.00	)			(0.00	)
Total distributions			(0.00	)			(0.00	)
Net asset value, end of period		$	12.98			$	10.30
Total return			26.12	%			3.00	%
Net assets, end of period (in millions)		$2				$1
Ratio of expenses to average net assets       including voluntary expense waiver			2.16	%(2)			3.17	%(2)
Ratio of net investment loss to average net       assets including voluntary expense waiver			-0.61	%(2)			-1.72	%(2)
Ratio of expenses to average net assets       excluding voluntary expense waiver			3.01	%(2)			4.01	%(2)
Ratio of net investment loss to average net       assets excluding voluntary expense waiver			-1.46	%(2)			-2.56	%(2)
Portfolio turnover rate			10	%			11	%

(1)Commencement of operations of the class.

(2)Annualized.

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	10.35
Income from investment operations:
Net investment income			0.11	(2)
Net realized and unrealized gain on investments			2.65	(2)
Total from investment operations			2.76
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	13.11
Total return(3)			25.10	%
Net assets, end of period (in thousands)		$125
Ratio of expenses to average net assets       including voluntary expense waiver			1.22	%(4)
Ratio of net investment income to average net assets       including voluntary expense waiver			0.32	%(4)
Ratio of expenses to average net assets       excluding voluntary expense waiver			2.07	%(4)
Ratio of net investment loss to average net       assets excluding voluntary expense waiver			-0.53	%(4)
Portfolio turnover rate			10	%(5)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	10.38
Income from investment operations:
Net investment income			0.12	(2)
Net realized and unrealized gain on investments			2.65	(2)
Total from investment operations			2.77
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	13.15
Total return			25.12	%
Net assets, end of period (in thousands)		$125
Ratio of expenses to average net assets including       voluntary expense waiver			1.11	%(3)
Ratio of net investment income to average net assets       including voluntary expense waiver			0.43	%(3)
Ratio of expenses to average net assets excluding       voluntary expense waiver			1.96	%(3)
Ratio of net investment loss to average net assets       excluding voluntary expense waiver			-0.42	%(3)
Portfolio turnover rate			10	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the period from 4-3-06(1) to
	9-30-07				3-31-07
Net asset value, beginning of period		$	10.38			$	10.00
Income (loss) from investment operations:
Net investment income (loss)			0.03				(0.08	)
Net realized and unrealized gain on investments			2.73				0.46
Total from investment operations			2.76				0.38
Less distributions from:
Net investment income			(0.00	)			(0.00	)
Capital gains			(0.00	)			(0.00	)
Total distributions			(0.00	)			(0.00	)
Net asset value, end of period		$	13.14			$	10.38
Total return			26.59	%			3.80	%
Net assets, end of period (in millions)		$1				$1
Ratio of expenses to average net assets       including voluntary expense waiver			1.40	%(2)			2.32	%(2)
Ratio of net investment income (loss) to average net       assets including voluntary expense waiver			0.17	%(2)			-0.82	%(2)
Ratio of expenses to average net assets       excluding voluntary expense waiver			2.25	%(2)			3.16	%(2)
Ratio of net investment loss to average net       assets excluding voluntary expense waiver			-0.68	%(2)			-1.66	%(2)
Portfolio turnover rate			10	%			11	%

(1)Commencement of operations of the class.

(2)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY HIGH INCOME FUND

Portfolio Highlights

On September 30, 2007, Ivy High Income Fund had net assets totaling $133,952,686 invested in a diversified portfolio of:

91.21%	Domestic Corporate Debt Securities
6.16%	Cash and Cash Equivalents
2.37%	Foreign Corporate Debt Securities
0.26%	Common Stocks

Sector Weightings

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

Financial Services Bonds	$	18.55
Business Equipment and Services Bonds	$	11.93
Capital Goods Bonds	$	9.17
Raw Materials Bonds	$	8.98
Health Care Bonds	$	8.21
Cash and Cash Equivalents	$	6.16
Consumer Services Bonds	$	5.86
Consumer Nondurables Bonds	$	5.41
Multiple Industry Bonds	$	5.31
Miscellaneous Bonds	$	4.55
Retail Bonds	$	4.40
Shelter Bonds	$	3.92
Utilities Bonds	$	3.72
Technology Bonds	$	3.57
Common Stocks	$	0.26

Quality Weightings

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

A	0.20	%
BB	8.19	%
B	54.53	%
CCC	27.03	%
Below CCC	2.19	%
Non-rated	1.44	%
Cash and Cash Equivalents and Equities	6.42	%

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

The Investments of Ivy High Income Fund
September 30, 2007                                                                                                    (Unaudited)
COMMON STOCKS	Shares			Value
Chemicals - Petroleum and Inorganic - 0.12%
UAP Holding Corp.		5,200	$	163,150
Hotels and Gaming - 0.14%
Pinnacle Entertainment, Inc.*		7,000		190,610
TOTAL COMMON STOCKS - 0.26%			$	353,760
(Cost: $326,099)

CORPORATE DEBT SECURITIES	Principal Amount in Thousands
Aircraft - 0.19%
Esterline Technologies Corporation,
7.75%, 6-15-13	$	250	253,750
Apparel - 1.15%
Oxford Industries, Inc.,
8.875%, 6-1-11		225	227,250
Perry Ellis International, Inc.,
8.875%, 9-15-13		1,335	1,311,637
			1,538,887
Beverages - 0.19%
Constellation Brands, Inc.,
8.125%, 1-15-12		250	254,375
Broadcasting - 0.82%
CCH II, LLC and CCH II Capital Corp.,
10.25%, 9-15-10		1,070	1,094,075
Business Equipment and Services - 11.93%
Allied Waste North America, Inc.,
7.125%, 5-15-16		750	766,875
Education Management LLC and Education       Management Finance Corp.,
10.25%, 6-1-16		2,250	2,328,750
First Data Corporation,
7.997%, 9-24-14 (A)		2,000	1,925,840
Iron Mountain Incorporated,
8.625%, 4-1-13		1,000	1,012,500

Nielsen Finance LLC and Nielsen Finance Co.,
0.0%, 8-1-16 (B)		1,500		1,050,000
R.H. Donnelley Corporation,
6.875%, 1-15-13		1,000		945,000
SunGard Data Systems Inc.:
9.125%, 8-15-13		2,375		2,470,000
10.25%, 8-15-15		750		783,750
UCAR Finance Inc.,
10.25%, 2-15-12		129		134,483
VNU, Inc.,
7.36%, 8-9-13 (A)		1,000		970,000
West Corporation:
9.5%, 10-15-14		175		180,688
11.0%, 10-15-16		3,250		3,412,500
				15,980,386
Capital Equipment - 4.67%
Jostens IH Corp.,
7.625%, 10-1-12		500		508,750
Simmons Bedding Company,
7.875%, 1-15-14		1,000		960,000
Simmons Company,
0.0%, 12-15-14 (B)		6,005		4,788,988
				6,257,738
Chemicals - Petroleum and Inorganic - 1.55%
Lyondell Chemical Company,
8.0%, 9-15-14		500		550,000
Nalco Company,
7.75%, 11-15-11		1,500		1,530,000
				2,080,000
Chemicals - Specialty - 7.43%
Compass Minerals International, Inc.:
0.0%, 12-15-12 (B)		250		260,000
0.0%, 6-1-13 (B)		1,000		1,007,500
Huntsman International LLC,
7.375%, 1-1-15		950		992,750
Momentive Performance Materials Inc.:
9.75%, 12-1-14 (C)		1,750		1,732,500
11.5%, 12-1-16 (C)		3,500		3,465,000
Mosaic Company (The):
7.375%, 12-1-14 (C)		195		204,750
7.625%, 12-1-16 (C)		2,150		2,292,437
				9,954,937
Communications Equipment - 0.75%
Intelsat (Bermuda), Ltd.,
8.886%, 1-15-15 (A)	$	1,000		1,010,000
Computers - Peripherals - 1.74%
ASG Consolidated LLC and ASG Finance, Inc.,
0.0%, 11-1-11 (B)		2,500		2,325,000
Construction Materials - 4.09%
Interface, Inc.,
9.5%, 2-1-14		2,045		2,137,025
Norcraft Holdings, L.P. and Norcraft Capital Corp.,
9.0%, 11-1-11		500		502,500
Ply Gem Industries, Inc.,
9.0%, 2-15-12		3,500		2,835,000
				5,474,525
Electronic Components - 0.89%
NXP B.V. and NXP Funding LLC,
7.875%, 10-15-14		225		216,563
Seagate Technology HDD Holdings,
6.8%, 10-1-16		1,000		977,500
				1,194,063
Finance Companies - 17.68%
Ford Motor Credit Company:
9.75%, 9-15-10		1,000		1,019,928
8.0%, 12-15-16		1,500		1,403,257
Goodman Global Holdings, Inc.:
8.36%, 6-15-12 (A)		361		357,390
7.875%, 12-15-12		3,000		2,947,500
INEOS GROUP HOLDINGS Plc,
8.5%, 2-15-16		1,000		957,500
Norcraft Companies, L.P. and Norcraft Finance Corp.,
0.0%, 9-1-12 (B)		200		179,000
PIH Acquisition Co.,
10.75%, 10-1-13 (C)		675		641,250
Sally Holdings LLC and Sally Capital Inc.:
9.25%, 11-15-14		1,000		1,010,000
10.5%, 11-15-16		5,500		5,500,000
Visant Holding Corp.,
8.75%, 12-1-13		5,225		5,342,563
WMG Holdings Corp.,
0.0%, 12-15-14 (B)		1,500		1,050,000
Xerox Capital Trust I,
8.0%, 2-1-27		3,250		3,279,120
				23,687,508
Food and Related - 1.59%
Pierre Merger Corp.,
9.875%, 7-15-12		850		782,000
Reddy Ice Holdings, Inc.,
0.0%, 11-1-12 (B)		1,435		1,348,900
				2,130,900
Forest and Paper Products - 3.92%
Buckeye Technologies Inc.:
8.0%, 10-15-10		3,760		3,835,200
8.5%, 10-1-13		1,400		1,414,000
				5,249,200
Health Care - Drugs - 1.95%
Mylan Laboratories Inc.,
6.375%, 8-15-15		500		536,875
Warner Chilcott Corporation,
8.75%, 2-1-15		2,000		2,070,000
				2,606,875
Health Care - General - 1.12%
Biomet, Inc.,
10.0%, 10-15-17 (C)		1,500		1,500,000
Hospital Supply and Management - 5.14%
CHS/Community Health Systems, Inc.,
8.875%, 7-15-15 (C)		2,750		2,825,625
HCA Inc.:
6.95%, 5-1-12		1,000		932,500
9.625%, 11-15-16 (C)		500		533,750
HealthSouth Corporation,
10.75%, 6-15-16		250		263,125
Rural/Metro Corporation,
0.0%, 3-15-16 (B)		320		251,200
Rural/Metro Operating Company, LLC and       Rural/Metro (Delaware) Inc.,
9.875%, 3-15-15		300		285,000
US Oncology, Inc.:
9.0%, 8-15-12		1,500		1,511,250
10.75%, 8-15-14		275		283,937
				6,886,387
Hotels and Gaming - 3.58%
Inn of the Mountain Gods Resort and Casino,
12.0%, 11-15-10		1,500		1,582,500
MGM MIRAGE:
8.5%, 9-15-10		500		522,500
8.375%, 2-1-11		500		521,250
Pinnacle Entertainment, Inc.,
8.25%, 3-15-12		2,145		2,171,813
				4,798,063
Household - General Products - 2.48%
Central Garden & Pet Company,
9.125%, 2-1-13		3,000		2,812,500
Sealy Mattress Company,
8.25%, 6-15-14		500		503,750
				3,316,250
Metal Fabrication - 0.41%
Aurora Acquisition Merger Sub, Inc.:
9.0%, 12-15-14		350		323,750
10.0%, 12-15-16		250		221,250
				545,000
Motion Pictures - 1.19%
AMC Entertainment Inc.,
11.0%, 2-1-16		1,500		1,597,500
Motor Vehicles - 1.77%
Group 1 Automotive, Inc.,
8.25%, 8-15-13		1,625		1,625,000
Sonic Automotive, Inc.,
8.625%, 8-15-13		750		740,625
				2,365,625
Multiple Industry - 5.31%
CPG International I Inc.,
10.5%, 7-1-13		500		500,000
Fontainebleau Las Vegas Holdings and       Fontainebleau Capital Corp.,
10.25%, 6-15-15 (C)		605		567,187
Freescale Semiconductor, Inc.:
8.875%, 12-15-14		1,000		965,000
10.125%, 12-15-16		1,250		1,162,500
Shingle Springs Tribal Gaming Authority,
9.375%, 6-15-15 (C)		450		454,500
UCI Holdco, Inc.,
12.69438%, 12-15-13 (A)(C)(D)		1,094		1,030,561
Umbrella Acquisition, Inc.,
9.75%, 3-15-15 (C)		2,500		2,437,500
				7,117,248
Petroleum - Domestic - 0.79%
Petrohawk Energy Corporation,
9.125%, 7-15-13		1,000		1,055,000
Petroleum - Services - 1.43%
R&B Falcon Corporation,
9.5%, 12-15-08		250		262,440
TXU Energy Company LLC,
7.0%, 3-15-13		1,500		1,646,610
				1,909,050
Publishing - 0.27%
Dex Media West LLC and Dex Media West Finance Co.,
8.5%, 8-15-10		350		359,625
Railroad - 0.28%
Kansas City Southern Railway Company (The),
7.5%, 6-15-09		375		379,219
Restaurants - 2.04%
NPC International, Inc.,
9.5%, 5-1-14		3,000		2,730,000
Retail - Food Stores - 0.96%
Couche-Tard U.S. L.P. and Couche-Tard Financing Corp.,
7.5%, 12-15-13		200		203,500
Pantry, Inc. (The),
7.75%, 2-15-14		600		579,000
Stater Bros. Holdings Inc.,
8.125%, 6-15-12		500		509,375
				1,291,875
Retail - General Merchandise - 1.40%
Dollar General Corporation,
10.625%, 7-15-15 (C)		2,000		1,880,000
Security and Commodity Brokers - 0.87%
Global Cash Access, L.L.C. and Global Cash       Access Finance Corporation,
8.75%, 3-15-12		1,122		1,161,270
Trucking and Shipping - 0.28%
Quality Distribution, LLC and QD Capital Corporation,
9.0%, 11-15-10		400		381,000
Utilities - Electric - 2.20%
Calpine Corporation,
7.44813%, 3-29-09 (A)		2,995		2,942,575
Utilities - Telephone - 1.52%
MetroPCS Communications, Inc.,
9.25%, 11-1-14 (C)	$	2,000		2,040,000
TOTAL CORPORATE DEBT SECURITIES - 93.58%			$	125,347,906
(Cost: $125,756,183)
SHORT-TERM SECURITIES
Beverages - 0.75%
Diageo Capital plc (Diageo plc),
5.9%, 10-10-07		1,000		998,525
Food and Related - 2.22%
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
6.2%, 10-12-07		1,500		1,497,158
Kellogg Co.,
5.9%, 12-7-07		1,500		1,483,529
				2,980,687
Retail - Food Stores - 2.43%
Kroger Co. (The):
5.8%, 10-1-07		1,257		1,257,000
6.0%, 10-12-07		1,000		998,167
6.2%, 10-16-07		1,000		997,417
				3,252,584
Utilities - Electric - 1.87%
Detroit Edison Co.,
6.1%, 10-1-07		2,500		2,500,000
Utilities - Gas and Pipeline - 0.37%
Questar Corporation,
5.75%, 10-19-07		500		498,562
TOTAL SHORT-TERM SECURITIES - 7.64%			$	10,230,358
(Cost: $10,230,358)
TOTAL INVESTMENT SECURITIES - 101.48%			$	135,932,024
(Cost: $136,312,640)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.48%)				(1,979,338	)
NET ASSETS - 100.00%			$	133,952,686

Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
The following credit default swap agreements were outstanding at September 30, 2007. (See Note 7 to financial statements):
	Counterparty	Reference Entity	Fixed Rate	Expiration Date	Notional Amount	Unrealized Appreciation (Depreciation			)
	Lehman Brothers	Allied Waste North       America, Inc.	3.20%	9-20-10	$5,000,000		$	173,000
	Morgan Stanley	Allied Waste North       America, Inc.	2.00%	9-20-10	(5,000,000	)		(12,500	)
	Lehman Brothers	ALLTEL Corporation	4.45%	9-20-12	(1,000,000	)		2,000
	Lehman Brothers	ALLTEL Corporation	4.45%	12-20-12	(1,000,000	)		2,000
	Bear Stearns	Dow Jones CDX       North America       High Yield Series 8	2.75%	6-20-12	(1,000,000	)		(19,922	)
	Goldman Sachs	Dow Jones CDX       North America       High Yield Series 8	2.75%	6-20-12	(1,000,000	)		(42,914	)
	Goldman Sachs	First Data Corporation	5.25%	12-20-12	(1,000,000	)		6,700
	Lehman Brothers	Ford Motor Company	4.60%	9-20-08	(1,500,000	)		(11,250	)
	Morgan Stanley	General Motors       Acceptance       Corporation	3.50%	12-20-12	(2,000,000	)		(9,200	)
	Lehman Brothers	General Motors       Corporation	4.50%	9-20-08	(1,500,000	)		(15,000	)
	Lehman Brothers	Lennar Corporation	2.60%	9-20-08	(2,000,000	)		5,800
	Lehman Brothers	Lennar Corporation	2.84%	12-20-12	(1,500,000	)		26,700
	Morgan Stanley	Societe Generale       N.A. Inc.	0.37%	9-20-12	(1,500,000	)		(8,550	)
	Morgan Stanley	Societe Generale       N.A. Inc.	0.55%	9-20-12	(1,500,000	)		(12,900	)
							$	83,964
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007.
(B)These securities do not bear interest for an initial period of time and subsequently become interest bearing.
(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 Directors. At September 30, 2007, the total value of these securities amounted to $21,605,060 or 16.13% of net assets.
(D)Payment in kind bonds.
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

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

ASSETS
Investment securities - at value (cost - $136,313) (Notes 1 and 3)	$	135,932
Cash		16
Receivables:
Dividends and interest		2,535
Fund shares sold		667
Investment securities sold		101
Unrealized appreciation on swap agreements (Note 7)		216
Amortized swap premiums paid (Note 7)		117
Prepaid and other assets		47
Total assets		139,631
LIABILITIES
Payable for investment securities purchased		5,266
Payable to Fund shareholders		181
Unrealized depreciation on swap agreements (Note 7)		132
Accrued shareholder servicing (Note 2)		42
Accrued management fee (Note 2)		7
Accrued accounting services fee (Note 2)		6
Accrued service fee (Note 2)		3
Accrued distribution fee (Note 2)		2
Other		39
Total liabilities		5,678
Total net assets	$	133,953

NET ASSETS
$0.01 par value capital stock:
Capital stock	$	154
Additional paid-in capital		136,192
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		111
Accumulated undistributed net realized loss on                 investment transactions		(2,207	)
Net unrealized depreciation in value of investments		(297	)
Net assets applicable to outstanding units of capital	$	133,953
Net asset value per share (net assets divided by shares outstanding):
Class A	$8.72
Class B	$8.72
Class C	$8.73
Class E	$8.72
Class I	$8.73
Class Y	$8.73
Capital shares outstanding:
Class A		11,849
Class B		858
Class C		1,966
Class E		54
Class I		26
Class Y		600
Capital shares authorized		200,000

See Notes to Financial Statements.

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

INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	5,359
Dividends		7
Total income		5,366
Expenses (Note 2):
Investment management fee		381
Shareholder servicing:
Class A		143
Class B		21
Class C		31
Class E		2
Class I		––	*
Class Y		4
Service fee:
Class A		115
Class B		9
Class C		22
Distribution fee:
Class B		27
Class C		65
Class E		––	*
Class Y		7
Accounting services fee		33
Audit fees		11
Legal fees		6
Custodian fees		3
Other		74
Total expenses		954
Net investment income		4,412
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		82
Realized net loss on swap agreements		(28	)
Realized net gain on investments		54
Unrealized depreciation in value of securities during the period	(2,939		)
Unrealized appreciation in value of swap agreements             during the period		84
Unrealized depreciation in value of investments during the period	(2,855		)
Net loss on investments	(2,801		)
Net increase in net assets resulting from operations	$	1,611

See Notes to Financial Statements.

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

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007
INCREASE IN NET ASSETS
Operations:
Net investment income		$	4,412			$	6,244
Realized net gain on investments			54				2,092
Unrealized appreciation (depreciation)			(2,855	)			1,718
Net increase in net assets resulting                      from operations			1,611				10,054
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(3,306	)			(4,057	)
Class B			(223	)			(378	)
Class C			(550	)			(1,072	)
Class E			(11	)			NA
Class I			(9	)			NA
Class Y			(202	)			(737	)
Realized gains on investment transactions:
Class A			(––	)			(––	)
Class B			(––	)			(––	)
Class C			(––	)			(––	)
Class E			(––	)			NA
Class I			(––	)			NA
Class Y			(––	)			(––	)
			(4,301	)			(6,244	)
Capital share transactions (Note 5)			22,951				38,164
Total increase			20,261				41,974
NET ASSETS
Beginning of period			113,692				71,718
End of period		$	133,953			$	113,692
Undistributed net investment income (loss)		$	111			$	(––	)*

*Not shown due to rounding.
(1)See "Financial Highlights" on pages 99 - 104.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	8.92		$	8.60		$	8.69		$	8.85		$	8.07		$	8.48
Income (loss) from       investment operations:
Net investment income			0.32			0.62			0.58			0.57			0.56			0.64
Net realized and             unrealized gain (loss)             on investments		(0.21		)		0.32		(0.09		)	(0.16		)		0.78		(0.41		)
Total from investment       operations			0.11			0.94			0.49			0.41			1.34			0.23
Less distributions from:
Net investment income		(0.31		)	(0.62		)	(0.58		)	(0.57		)	(0.56		)	(0.64		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Total distributions		(0.31		)	(0.62		)	(0.58		)	(0.57		)	(0.56		)	(0.64		)
Net asset value,       end of period		$	8.72		$	8.92		$	8.60		$	8.69		$	8.85		$	8.07
Total return(1)			1.46	%	11.39		%		5.80	%		4.69	%	17.24		%		3.02	%
Net assets, end of period       (in millions)		$103			$79			$39			$32			$18			$6
Ratio of expenses to average       net assets including       voluntary expense waiver			1.39	%(2)		1.38	%		1.45	%		1.44	%		1.39	%		0.91	%
Ratio of net investment       income to average net       assets including voluntary       expense waiver			7.39	%(2)		7.20	%		6.70	%		6.43	%		6.62	%		7.83	%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			1.39	%(2)(3)		1.38	%(3)		1.45	%(3)		1.44	%(3)		1.39	%(3)		1.44	%
Ratio of net investment       income to average net       assets excluding voluntary       expense waiver			7.39	%(2)(3)		7.20	%(3)		6.70	%(3)		6.43	%(3)		6.62	%(3)		7.30	%
Portfolio turnover rate			50	%		98	%		45	%		54	%		78	%		52	%

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

(2)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	8.92		$	8.60		$	8.69		$	8.85		$	8.07		$	8.48
Income (loss) from       investment operations:
Net investment income			0.28			0.53			0.50			0.49			0.50			0.56
Net realized and             unrealized gain             (loss) on investments		(0.21		)		0.32		(0.09		)	(0.16		)		0.78		(0.41		)
Total from investment       operations			0.07			0.85			0.41			0.33			1.28			0.15
Less distributions from:
Net investment income		(0.27		)	(0.53		)	(0.50		)	(0.49		)	(0.50		)	(0.56		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Total distributions		(0.27		)	(0.53		)	(0.50		)	(0.49		)	(0.50		)	(0.56		)
Net asset value,       end of period		$	8.72		$	8.92		$	8.60		$	8.69		$	8.85		$	8.07
Total return			0.94	%	10.24		%		4.85	%		3.80	%	16.22		%		2.06	%
Net assets, end of period       (in millions)		$8			$7			$6			$5			$4			$2
Ratio of expenses to average       net assets including       voluntary expense waiver			2.44	%(1)		2.43	%		2.36	%		2.31	%		2.28	%		1.84	%
Ratio of net investment       income to average net       assets including voluntary       expense waiver			6.34	%(1)		6.14	%		5.79	%		5.56	%		5.78	%		6.90	%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			2.44	%(1)(2)		2.43	%(2)		2.36	%(2)		2.31	%(2)		2.28	%(2)		2.37	%
Ratio of net investment       income to average net       assets excluding voluntary       expense waiver			6.34	%(1)(2)		6.14	%(2)		5.79	%(2)		5.56	%(2)		5.78	%(2)		6.37	%
Portfolio turnover rate			50	%		98	%		45	%		54	%		78	%		52	%

(1)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	8.92		$	8.60		$	8.69		$	8.85		$	8.07		$	8.48
Income (loss) from       investment operations:
Net investment income			0.29			0.55			0.51			0.50			0.50			0.57
Net realized and             unrealized gain             (loss) on investments		(0.20		)		0.32		(0.09		)	(0.16		)		0.78		(0.41		)
Total from investment       operations			0.09			0.87			0.42			0.34			1.28			0.16
Less distributions from:
Net investment income		(0.28		)	(0.55		)	(0.51		)	(0.50		)	(0.50		)	(0.57		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Total distributions		(0.28		)	(0.55		)	(0.51		)	(0.50		)	(0.50		)	(0.57		)
Net asset value,       end of period		$	8.73		$	8.92		$	8.60		$	8.69		$	8.85		$	8.07
Total return			1.04	%	10.51		%		5.00	%		3.90	%	16.30		%		2.15	%
Net assets, end of period       (in millions)			$17			$17			$17			$22			$23			$18
Ratio of expenses to average       net assets including       voluntary expense waiver			2.20	%(1)		2.18	%		2.21	%		2.20	%		2.21	%		1.74	%
Ratio of net investment       income to average net       assets including       voluntary expense waiver			6.58	%(1)		6.39	%		5.94	%		5.67	%		5.89	%		7.05	%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			2.20	%(1)(2)		2.18	%(2)		2.21	%(2)		2.20	%(2)		2.21	%(2)		2.27	%
Ratio of net investment       income to average net       assets excluding       voluntary expense waiver			6.58	%(1)(2)		6.39	%(2)		5.94	%(2)		5.67	%(2)		5.89	%(2)		6.52	%
Portfolio turnover rate			50	%		98	%		45	%		54	%		78	%		52	%

(1)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	8.92
Income (loss) from investment operations:
Net investment income			0.30	(2)
Net realized and unrealized loss on investments			(0.19	)(2)
Total from investment operations			0.11
Less distributions from:
Net investment income			(0.31	)
Capital gains			(0.00	)
Total distributions			(0.31	)
Net asset value, end of period		$	8.72
Total return(3)			1.13	%
Net assets, end of period (in thousands)		$475
Ratio of expenses to average net assets			2.02	%(4)
Ratio of net investment income to average net assets			6.78	%(4)
Portfolio turnover rate			50	%(5)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	8.92
Income (loss) from investment operations:
Net investment income			0.43	(2)
Net realized and unrealized loss on investments		(0.20		)(2)
Total from investment operations			0.23
Less distributions from:
Net investment income		(0.42		)
Capital gains		(0.00		)
Total distributions		(0.42		)
Net asset value, end of period		$	8.73
Total return			2.51	%
Net assets, end of period (in thousands)		$227
Ratio of expenses to average net assets			1.03	%(3)
Ratio of net investment income to average net assets			7.76	%(3)
Portfolio turnover rate			50	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	8.92		$	8.60		$	8.69		$	8.85		$	8.07		$	8.48
Income (loss) from       investment operations:
Net investment income			0.33			0.64			0.59			0.58			0.58			0.64
Net realized and             unrealized gain             (loss) on investments		(0.20		)		0.32		(0.09		)	(0.16		)		0.78		(0.41		)
Total from investment       operations			0.13			0.96			0.50			0.42			1.36			0.23
Less distributions from:
Net investment income		(0.32		)	(0.64		)	(0.59		)	(0.58		)	(0.58		)	(0.64		)
Capital gains		(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)	(0.00		)
Total distributions		(0.32		)	(0.64		)	(0.59		)	(0.58		)	(0.58		)	(0.64		)
Net asset value,       end of period		$	8.73		$	8.92		$	8.60		$	8.69		$	8.85		$	8.07
Total return			1.65	%	11.60		%		6.00	%		4.83	%	17.36		%		3.03	%
Net assets, end of period       (in millions)		$5			$11			$10			$9			$10			$4
Ratio of expenses to average       net assets including       voluntary expense waiver			1.22	%(1)		1.20	%		1.25	%		1.30	%		1.30	%		1.08	%
Ratio of net investment       income to average net       assets including voluntary       expense waiver			7.59	%(1)		7.37	%		6.90	%		6.57	%		6.82	%		7.22	%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			1.22	%(1)(2)		1.20	%(2)		1.25	%(2)		1.30	%(2)		1.30	%(2)		1.61	%
Ratio of net investment       income to average net       assets excluding voluntary       expense waiver			7.59	%(1)(2)		7.37	%(2)		6.90	%(2)		6.57	%(2)		6.82	%(2)		6.69	%
Portfolio turnover rate			50	%		98	%		45	%		54	%		78	%		52	%

(1)Annualized.

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

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY LARGE CAP GROWTH FUND

Portfolio Highlights

On September 30, 2007, Ivy Large Cap Growth Fund had net assets totaling $390,860,836 invested in a diversified portfolio of:

78.33%	Domestic Common Stocks
11.73%	Cash and Cash Equivalents
9.94%	Foreign Common Stocks

Sector Weightings

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

Technology Stocks	$	28.57
Health Care Stocks	$	12.47
Cash and Cash Equivalents	$	11.73
Consumer Nondurables Stocks	$	7.27
Financial Services Stocks	$	6.94
Energy Stocks	$	6.59
Capital Goods Stocks	$	6.21
Consumer Services Stocks	$	5.25
Miscellaneous Stocks	$	5.15
Consumer Durables Stocks	$	5.00
Raw Materials Stocks	$	4.82

The Investments of Ivy Large Cap Growth Fund
September 30, 2007                                                                                                      (Unaudited)
COMMON STOCKS	Shares			Value
Aircraft - 3.67%
Boeing Company (The)		102,800	$	10,792,972
United Technologies Corporation		44,200		3,557,216
				14,350,188
Beverages - 2.65%
PepsiCo, Inc.		141,400		10,358,964
Capital Equipment - 4.42%
Deere & Company		106,900		15,866,098
Joy Global Inc.		27,500		1,397,688
				17,263,786
Chemicals - Petroleum and Inorganic - 4.82%
Monsanto Company		219,900		18,854,226
Communications Equipment - 8.41%
Cisco Systems, Inc.*		503,629		16,682,711
Nokia Corporation, Series A, ADR		335,400		12,721,722
QUALCOMM Incorporated		81,500		3,443,375
				32,847,808
Computers - Main and Mini - 3.23%
Hewlett-Packard Company		253,700		12,631,723
Computers - Micro - 5.29%
Apple Inc.*		134,700		20,674,429
Computers - Peripherals - 4.42%
Adobe Systems Incorporated*		256,200		11,188,254
Electronic Arts Inc.*		108,900		6,099,489
				17,287,743
Consumer Electronics - 5.00%
Research In Motion Limited*		198,500		19,558,205
Defense - 1.69%
General Dynamics Corporation		78,200		6,605,554
Electrical Equipment - 0.85%
Emerson Electric Co.		62,600		3,331,572
Electronic Components - 0.76%
Microchip Technology Incorporated		81,200		2,947,560
Electronic Instruments - 1.10%
Thermo Fisher Scientific Inc.*		74,700		4,311,684
Food and Related - 0.67%
Wm. Wrigley Jr. Company		40,600		2,607,738
Health Care - Drugs - 10.76%
Abbott Laboratories		201,500		10,804,430
Alcon, Inc.		25,600		3,684,352
Allergan, Inc.		63,700		4,106,739
Genentech, Inc.*		74,400		5,804,688
Gilead Sciences, Inc.*		283,600		11,586,478
Schering-Plough Corporation		191,300		6,050,819
				42,037,506
Health Care - General - 1.71%
Baxter International Inc.		46,700		2,628,276
Zimmer Holdings, Inc.*		50,200		4,065,698
				6,693,974
Hotels and Gaming - 5.25%
Las Vegas Sands, Inc.*		153,800		20,519,996
Household - General Products - 3.95%
Colgate-Palmolive Company		216,300		15,426,516
Insurance - Life - 1.32%
Aflac Incorporated		90,600		5,167,824
Multiple Industry - 1.48%
VMware, Inc., Class A*		68,000		5,780,000
Non-Residential Construction - 0.94%
Fluor Corporation		25,600		3,685,888
Petroleum - Services - 6.59%
Schlumberger Limited		117,800		12,369,000
Smith International, Inc.		187,324		13,374,934
				25,743,934
Retail - General Merchandise - 1.48%
Kohl's Corporation*		101,100		5,796,063
Security and Commodity Brokers - 5.62%
CME Group Inc.		25,043		14,709,006
Goldman Sachs Group, Inc. (The)		20,100		4,356,474
UBS AG		54,300		2,891,475
				21,956,955
Timesharing and Software - 2.19%
Google Inc., Class A*		15,100		8,569,023
TOTAL COMMON STOCKS - 88.27%			$	345,008,859
(Cost: $244,494,745)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Banks - 1.02%
Lloyds TSB Bank PLC,
5.04%, 10-17-07	$	4,000		3,991,040
Beverages - 0.26%
Diageo Capital plc (Diageo plc),
5.37%, 10-10-07		1,000		998,657
Capital Equipment - 1.66%
Deere (John) Capital Corporation,
5.07%, 10-19-07		1,500		1,496,198
Deere (John) Credit Limited (Deere (John) Capital       Corporation),
4.9%, 10-31-07		5,000		4,979,583
				6,475,781
Finance Companies - 0.51%
ED&F Man Treasury Management PLC (Royal Bank       of Scotland PLC (The)),
5.0%, 10-2-07		2,000		1,999,722
Food and Related - 1.79%
ConAgra Foods, Inc.,
5.23%, 10-3-07		2,000		1,999,419
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
5.4%, 10-12-07		5,000		4,991,750
				6,991,169
Health Care - General - 1.40%
Johnson & Johnson,
4.72%, 10-23-07		5,500		5,484,136
Household - General Products - 2.30%
Clorox Co.,
5.42%, 10-9-07		7,000		6,991,569
Procter & Gamble International Funding S.C.A.       (Procter & Gamble Company (The)),
5.0%, 11-8-07		2,000		1,989,444
				8,981,013
Multiple Industry - 0.76%
Honeywell International Inc.,
4.76%, 11-21-07		3,000		2,979,770
Utilities - Electric - 1.60%
New York State Electric & Gas Corp.,
5.57%, 10-1-07		2,000		2,000,000
PacifiCorp,
5.32%, 10-1-07		4,256		4,256,000
				6,256,000
TOTAL SHORT-TERM SECURITIES - 11.30%			$	44,157,288
(Cost: $44,157,288)
TOTAL INVESTMENT SECURITIES - 99.57%			$	389,166,147
(Cost: $288,652,033)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.43%				1,64,689
NET ASSETS - 100.00%			$	390,860,836

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit.

*No dividends were paid during the preceding 12 months.

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

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

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

ASSETS
Investment securities - at value (cost - $288,652) (Notes 1 and 3)	$	389,166
Receivables:
Fund shares sold		5,300
Dividends and interest		128
Prepaid and other assets		252
Total assets		394,846
LIABILITIES
Payable for investment securities purchased		3,384
Payable to Fund shareholders		258
Due to custodian		217
Accrued shareholder servicing (Note 2)		85
Accrued management fee (Note 2)		22
Accrued accounting services fee (Note 2)		9
Accrued distribution fee (Note 2)		4
Accrued service fee (Note 2)		6
Total liabilities		3,985
Total net assets	$	390,861
NET ASSETS
$0.01 par value capital stock:
Capital stock	$	271
Additional paid-in capital		293,727
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(256	)
Accumulated undistributed net realized loss on investment transactions		(3,395	)
Net unrealized appreciation in value of investments		100,514
Net assets applicable to outstanding units of capital	$	390,861
Net asset value per share (net assets divided by shares outstanding):
Class A	$14.50
Class B	$13.28
Class C	$13.65
Class E	$14.49
Class I	$14.81
Class R	$14.42
Class Y	$14.69
Capital shares outstanding:
Class A		17,908
Class B		1,136
Class C		1,577
Class E		12
Class I		92
Class R		10
Class Y		6,322
Capital shares authorized		330,000

See Notes to Financial Statements.

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

INVESTMENT LOSS
Income (Note 1B):
Dividends (net of foreign withholding taxes of $53)	$	1,215
Interest and amortization		258
Total income		1,473
Expenses (Note 2):
Investment management fee		946
Shareholder servicing:
Class A		261
Class B		33
Class C		31
Class E		––	*
Class I		1
Class R		––	*
Class Y		48
Service fee:
Class A		225
Class B		16
Class C		24
Class R		––	*
Distribution fee:
Class B		47
Class C		72
Class E		––	*
Class R		––	*
Class Y		73
Accounting services fee		51
Audit fees		15
Custodian fees		5
Legal fees		2
Other		103
Total		1,953
Less expenses in excess of voluntary limit (Note 2)		(250	)
Total expenses		1,703
Net investment loss		(230	)
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		5,843
Unrealized appreciation in value of investments during the period		53,331
Net gain on investments		59,174
Net increase in net assets resulting from operations	$	58,944

See Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY LARGE CAP GROWTH FUND
      (In Thousands)                                                                                                (Unaudited)

	For the six months ended September 30, 2007				For the fiscal year ended March 31, 2007
INCREASE IN NET ASSETS
Operations:
Net investment loss		$	(230	)		$	(869	)
Realized net gain on investments			5,843				9,794
Unrealized appreciation (depreciation)			53,331				(4,646	)
Net increase in net assets resulting                      from operations			58,944				4,279
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(––	)			(––	)
Class B			(––	)			(––	)
Class C			(––	)			(––	)
Class E			(––	)			NA
Class I			(––	)			NA
Class Y			(––	)			(––	)
Class R			(––	)			(––	)
Realized gains on investment transactions:
Class A			(––	)			(––	)
Class B			(––	)			(––	)
Class C			(––	)			(––	)
Class E			(––	)			NA
Class I			(––	)			NA
Class Y			(––	)			(––	)
Class R			(––	)			(––	)
			(––	)			(––	)
Capital share transactions (Note 5)			80,198				(3,461	)
Total increase			139,142				818
NET ASSETS
Beginning of period			251,719				250,901
End of period		$	390,861			$	251,719
Undistributed net investment loss		$	(256	)		$	(26	)

(1)See "Financial Highlights" on pages 113 - 119.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004				2003
Net asset value,       beginning of period		$	11.82		$	11.61		$	9.54		$	9.27		$	7.24			$	9.21
Income (loss) from       investment operations:
Net investment loss			(0.01	)		(0.03	)		(0.06	)	(0.03		)	(0.04		)		(0.03		)
Net realized and             unrealized gain (loss)             on investments			2.69			0.24			2.13			0.30			2.07			(1.94		)
Total from investment       operations			2.68			0.21			2.07			0.27			2.03			(1.97		)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)		(0.00		)
Capital gains			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)		(0.00		)
Total distributions			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)		(0.00		)
Net asset value, end of period		$	14.50		$	11.82		$	11.61		$	9.54		$	9.27			$	7.24
Total return(1)			22.67	%		1.81	%		21.70	%		2.91	%	28.04		%	-21.39			%
Net assets, end of period       (in millions)		$260			$162			$157			$82			$76				$21
Ratio of expenses to average       net assets including       voluntary expense waiver			1.15	%(2)		1.20	%		1.41	%		1.50	%		1.55	%			1.28	%
Ratio of net investment loss to       average net assets including       voluntary expense waiver			-0.07	%(2)		-0.25	%		-0.62	%	-0.31		%	-0.89		%		-0.23		%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			1.37	%(2)		1.39	%		1.41	%(3)		1.52	%		1.55	%(3)			1.66	%
Ratio of net investment loss to       average net assets excluding       voluntary expense waiver			-0.29	%(2)		-0.44	%		-0.62	%(3)	-0.33		%	-0.89		%(3)		-0.61		%
Portfolio turnover rate			36	%		93	%		79	%		131	%		162	%			72	%

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

(2)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004				2003
Net asset value,       beginning of period		$	10.89		$	10.83		$	8.99		$	8.83		$	6.99			$	9.05
Income (loss) from       investment operations:
Net investment loss			(0.05	)		(0.12	)		(0.14	)	(0.05		)	(0.13		)		(0.14		)
Net realized and             unrealized gain (loss)             on investments			2.44			0.18			1.98			0.21			1.97			(1.92		)
Total from investment       operations			2.39			0.06			1.84			0.16			1.84			(2.06		)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)		(0.00		)
Capital gains			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)		(0.00		)
Total distributions			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)		(0.00		)
Net asset value, end of period		$	13.28		$	10.89		$	10.83		$	8.99		$	8.83			$	6.99
Total return			21.95	%		0.55	%		20.47	%		1.81	%	26.32		%	-22.76			%
Net assets, end of period       (in millions)		$15			$12			$11			$8			$5				$2
Ratio of expenses to average       net assets including       voluntary expense waiver			2.37	%(1)		2.42	%		2.45	%		2.53	%		2.85	%			2.93	%
Ratio of net investment loss       to average net assets       including voluntary       expense waiver			-1.28	%(1)		-1.48	%		-1.65	%	-1.30		%	-2.16		%		-1.87		%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			2.37	%(1)(2)		2.42	%(2)		2.45	%(2)		2.53	%(2)		2.85	%(2)			3.31	%
Ratio of net investment loss       to average net assets       excluding voluntary       expense waiver			-1.28	%(1)(2)		-1.48	%(2)		-1.65	%(2)	-1.30		%(2)	-2.16		%(2)		-2.25		%
Portfolio turnover rate			36	%		93	%		79	%		131	%		162	%			72	%

(1)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005				2004				2003
Net asset value,       beginning of period		$	11.18		$	11.09		$	9.18		$	8.99			$	7.08			$	9.10
Income (loss) from       investment operations:
Net investment loss			(0.08	)		(0.12	)		(0.10	)	(0.09		)		(0.11		)		(0.10		)
Net realized and             unrealized gain (loss)             on investments			2.55			0.21			2.01			0.28				2.02			(1.92		)
Total from investment       operations			2.47			0.09			1.91			0.19				1.91			(2.02		)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)	(0.00		)		(0.00		)		(0.00		)
Capital gains			(0.00	)		(0.00	)		(0.00	)	(0.00		)		(0.00		)		(0.00		)
Total distributions			(0.00	)		(0.00	)		(0.00	)	(0.00		)		(0.00		)		(0.00		)
Net asset value, end of period		$	13.65		$	11.18		$	11.09		$	9.18			$	8.99			$	7.08
Total return			22.09	%		0.81	%		20.81	%		2.11	%	26.98			%	-22.28			%
Net assets, end of period       (in millions)		$22			$19			$17			$12				$11				$4
Ratio of expenses to average       net assets including       voluntary expense waiver			2.14	%(1)		2.18	%		2.21	%		2.25	%			2.44	%			2.26	%
Ratio of net investment loss       to average net assets       including voluntary       expense waiver			-1.05	%(1)		-1.23	%		-1.42	%	-1.06		%		-1.75		%		-1.20		%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			2.14	%(1)(2)		2.18	%(2)		2.21	%(2)		2.28	%			2.44	%(2)			2.64	%
Ratio of net investment loss       to average net assets       excluding voluntary       expense waiver			-1.05	%(1)(2)		-1.23	%(2)		-1.42	%(2)	-1.09		%		-1.75		%(2)		-1.58		%
Portfolio turnover rate			36	%		93	%		79	%		131	%			162	%			72	%

(1)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	11.82
Income from investment operations:
Net investment income			0.02	(2)
Net realized and unrealized gain on investments			2.65	(2)
Total from investment operations			2.67
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	14.49
Total return(3)			22.38	%
Net assets, end of period (in thousands)		$175
Ratio of expenses to average net assets       including voluntary expense waiver			1.33	%(4)
Ratio of net investment loss to average net       assets including voluntary expense waiver			-0.27	%(4)
Ratio of expenses to average net assets       excluding voluntary expense waiver			1.69	%(4)
Ratio of net investment loss to average net       assets excluding voluntary expense waiver			-0.63	%(4)
Portfolio turnover rate			36	%(5)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	11.97
Income from investment operations:
Net investment income			0.05	(2)
Net realized and unrealized gain on investments			2.79	(2)
Total from investment operations			2.84
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	14.81
Total return			23.52	%
Net assets, end of period (in millions)		$1
Ratio of expenses to average net assets			0.98	%(3)
Ratio of net investment income to average net assets			0.14	%(3)
Portfolio turnover rate			36	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended 9-30-07				For the fiscal year ended 3-31-07				For the period from 12-29-05(1) to 3-31-06
Net asset value, beginning of period		$	11.78			$	11.60			$	11.27
Income (loss) from investment operations:
Net investment loss			(0.03	)			(0.06	)			(0.03	)
Net realized and unrealized gain on investments			2.67				0.24				0.36
Total from investment operations			2.64				0.18				0.33
Less distributions from:
Net investment income			(0.00	)			(0.00	)			(0.00	)
Capital gains			(0.00	)			(0.00	)			(0.00	)
Total distributions			(0.00	)			(0.00	)			(0.00	)
Net asset value, end of period		$	14.42			$	11.78			$	11.60
Total return			22.41	%			1.55	%			2.93	%
Net assets, end of period (in thousands)		$144				$117				$103
Ratio of expenses to average net assets			1.50	%(2)			1.51	%			1.56	%(2)
Ratio of net investment loss to average net assets			-0.42	%(2)			-0.57	%			-0.88	%(2)
Portfolio turnover rate			36	%			93	%			79	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the fiscal year ended March 31, 2006.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004				2003
Net asset value,       beginning of period		$	11.97		$	11.74		$	9.62		$	9.32		$	7.26			$	9.22
Income (loss) from       investment operations:
Net investment             income (loss)			(0.02	)		(0.01	)		(0.04	)		0.00		(0.03		)		(0.30		)
Net realized and             unrealized gain (loss)             on investments			2.74			0.24			2.16			0.30			2.09			(1.66		)
Total from investment       operations			2.72			0.23			2.12			0.30			2.06			(1.96		)
Less distributions from:
Net investment income			(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Capital gains			(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Total distributions			(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)		(0.00		)
Net asset value, end of period		$	14.69		$	11.97		$	11.74		$	9.62		$	9.32			$	7.26
Total return			22.72	%		1.96	%		22.04	%		3.22	%	28.38		%	-21.26			%
Net assets, end of period       (in millions)		$93			$59			$66			$50			$59				$1
Ratio of expenses to average       net assets including       voluntary expense waiver			1.06	%(1)		1.08	%		1.20	%		1.20	%		1.26	%			1.05	%
Ratio of net investment       income (loss) to average       net assets including       voluntary expense waiver			0.03	%(1)		-0.13	%		-0.40	%	-0.01		%	-0.64		%			0.00	%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			1.23	%(1)		1.19	%		1.21	%		1.25	%		1.26	%(2)			1.43	%
Ratio of net investment loss       to average net assets       excluding voluntary       expense waiver			-0.14	%(1)		-0.24	%		-0.41	%	-0.06		%	-0.64		%(2)		-0.38		%
Portfolio turnover rate			36	%		93	%		79	%		131	%		162	%			72	%

(1)Annualized.

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

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY LIMITED-TERM BOND FUND

Portfolio Highlights

On September 30, 2007, Ivy Limited-Term Bond Fund had net assets totaling $66,163,973 invested in a diversified portfolio of:

82.43%	United States Government and Government Agency Obligations
10.59%	Corporate Debt Securities
5.97%	Cash and Cash Equivalents
1.01%	Municipal Obligations - Taxable

Sector Weightings

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

United States Government Mortgage-Backed Obligations	$	31.51
United States Government Agency Obligations	$	28.06
United States Government Treasury Obligations	$	22.86
Cash and Cash Equivalents	$	5.97
Miscellaneous Bonds	$	3.09
Technology Bonds	$	1.51
Raw Materials Bonds	$	1.51
Business Equipment and Services Bonds	$	1.50
Consumer Services Bonds	$	1.49
Multi-Industry Bonds	$	1.49
Municipal Obligations - Taxable	$	1.01

Quality Weightings

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

AAA	79.36	%
AA	3.05	%
A	5.57	%
BBB	1.49	%
Not Rated	4.56	%
Cash and Cash Equivalents	5.97	%

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

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

The Investments of Ivy Limited-Term Bond Fund
September 30, 2007                                                                                                        (Unaudited)
CORPORATE DEBT SECURITIES	Principal Amount in Thousands			Value
Broadcasting - 1.49%
Cox Communications, Inc.,
4.625%, 1-15-10	$	1,000	$	987,866
Business Equipment and Services - 1.50%
International Lease Finance Corporation,
5.0%, 4-15-10		1,000		995,502
Communications Equipment - 1.51%
Cisco Systems, Inc.,
5.575%, 2-20-09 (A)		1,000		998,114
Health Care - Drugs - 0.77%
Abbott Laboratories,
5.6%, 5-15-11		500		509,150
Mining - 1.51%
BHP Billiton Finance (USA) Limited,
5.0%, 12-15-10		1,000		1,001,432
Multiple Industry - 1.49%
General Electric Capital Corporation,
5.48%, 4-10-12 (A)		1,000		986,919
Petroleum - Domestic - 0.78%
Duke Energy Corporation,
6.25%, 1-15-12		500		517,476
Security and Commodity Brokers - 0.78%
Merrill Lynch & Co., Inc.,
6.05%, 8-15-12		500		512,660
Utilities - Telephone - 0.76%
SBC Communications Inc.,
5.785%, 11-14-08 (A)		500		500,403
TOTAL CORPORATE DEBT SECURITIES - 10.59%			$	7,009,522
(Cost: $11,993,261)

MUNICIPAL OBLIGATIONS - TAXABLE - 1.01%
Missouri
Missouri Development Finance Board, Taxable       Infrastructure Facilities Revenue Bonds       (City of Independence, Missouri - Crackerneck       Creek Project), Series 2006A:
5.3%, 3-1-09	150		150,417
5.35%, 3-1-10	515		517,400
(Cost: $665,000)		$	667,817
UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations - 28.06%
Federal Agricultural Mortgage Corporation       Guaranteed Notes Trust 2006-1,
4.875%, 1-14-11 (B)	3,000		3,018,300
Federal Home Loan Bank,
5.0%, 2-29-08	1,000		1,000,205
Federal Home Loan Mortgage Corporation:
3.625%, 9-15-08	2,350		2,328,258
5.0%, 10-18-10	1,000		1,013,972
5.375%, 1-9-14	2,500		2,510,273
Federal National Mortgage Association:
5.35%, 4-21-08	1,500		1,500,413
5.08%, 5-14-10	3,000		3,024,423
5.3%, 5-7-12	1,150		1,157,799
5.5%, 3-26-14	3,000		3,009,348
			18,562,991
Mortgage-Backed Obligations - 31.51%
Federal Home Loan Mortgage Corporation       Adjustable Rate Participation Certificates:
5.438%, 4-1-36 (A)	855		851,281
5.692%, 7-1-36 (A)	1,335		1,340,952
Federal Home Loan Mortgage Corporation Agency       REMIC/CMO:
4.0%, 12-15-12	284		275,678
3.5%, 12-15-16	649		628,115
5.5%, 10-15-23 (Interest Only)	1,532		65,763
5%, 6-15-24 (Interest Only)	1,619		96,927
4.25%, 3-15-31	428		416,507
4.0%, 11-15-32	929		895,380
5.5%, 5-15-34	799		803,250

Federal Home Loan Mortgage Corporation Fixed       Rate Participation Certificates:
4.5%, 5-1-10	542	535,699
5.5%, 1-1-17	150	149,747
5.5%, 5-1-17	153	153,259
4.5%, 4-1-18	991	956,934
6.0%, 11-1-36	2,330	2,333,412
Federal Home Loan Mortgage Corporation       Non-Agency REMIC/CMO,
5.5%, 3-15-31	1,500	1,505,416
Federal National Mortgage Association Agency       REMIC/CMO:
5.5%, 6-25-18	2,458	2,458,418
5.0%, 9-25-18	1,500	1,471,775
5.0%, 6-25-22	861	856,391
5.5%, 11-25-36 (Interest Only)	1,659	487,148
Federal National Mortgage Association Fixed       Rate Pass-Through Certificates:
7.0%, 10-1-14	25	25,450
5.5%, 2-1-17	480	480,306
5.0%, 11-1-17	541	532,096
5.5%, 1-1-18	510	510,024
Government National Mortgage Association Fixed       Rate Pass-Through Certificates:
6.5%, 1-15-14	40	41,226
6.0%, 5-15-14	136	137,529
5.5%, 1-15-17	221	221,840
6.0%, 1-15-17	142	143,716
5.5%, 7-15-17	355	356,207
5.0%, 12-15-17	997	982,491
4.0%, 9-15-18	1,032	976,698
7.0%, 10-15-28	29	30,475
7.0%, 4-15-29	17	17,589
7.0%, 7-15-29	42	44,396
Government National Mortgage Association       Non-Agency REMIC/CMO,
4.0%, 1-16-30	70	66,591
		20,848,686

Treasury Obligations - 22.86%
United States Treasury Notes:
4.0%, 4-15-10	11,000			10,998,284
5.0%, 2-15-11		1,000		1,029,609
5.0%, 8-15-11		3,000		3,098,202
				15,126,095
TOTAL UNITED STATES GOVERNMENT AND       GOVERNMENT AGENCY OBLIGATIONS - 82.43%			$	54,537,772
(Cost: $49,318,897)
SHORT-TERM SECURITIES
Forest and Paper Products - 2.94%
Sonoco Products Co.,
5.6%, 10-1-07		1,941		1,941,000
Household - General Products - 3.02%
Fortune Brands Inc.,
5.55%, 10-1-07		2,000		2,000,000
TOTAL SHORT-TERM SECURITIES - 5.96%			$	3,941,000
(Cost: $3,941,000)
TOTAL INVESTMENT SECURITIES - 99.99%			$	66,156,111
(Cost: $65,918,158)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.01%				7,862
NET ASSETS - 100.00%			$	66,163,973

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit.

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

(B)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 Directors. At September 30, 2007, the total value of this security amounted to 4.56% of net assets.

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

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

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

ASSETS
Investment securities - at value (cost - $65,918) (Notes 1 and 3)	$	66,156
Receivables:
Interest		655
Fund shares sold		182
Investment securities sold		2
Prepaid and other assets		37
Total assets		67,032
LIABILITIES
Payable for investment securities purchased		518
Payable to Fund shareholders		274
Accrued shareholder servicing (Note 2)		19
Dividends payable		15
Due to custodian		5
Accrued accounting services fee (Note 2)		4
Accrued management fee (Note 2)		3
Accrued distribution fee (Note 2)		1
Accrued service fee (Note 2)		––	*
Other		29
Total liabilities		868
Total net assets	$	66,164
NET ASSETS
$0.01 par value capital stock:
Capital stock	$	65
Additional paid-in capital		66,616
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		––
Accumulated undistributed net realized loss on investment transactions		(755	)
Net unrealized appreciation in value of investments		238
Net assets applicable to outstanding units of capital	$	66,164
Net asset value per share (net assets divided by shares outstanding):
Class A	$10.20
Class B	$10.20
Class C	$10.20
Class E	$10.20
Class I	$10.20
Class Y	$10.20
Capital shares outstanding:
Class A		4,731
Class B		528
Class C		1,101
Class E		10
Class I		12
Class Y		108
Capital shares authorized	200,000

*Not shown due to rounding.

See Notes to Financial Statements.

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

INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	1,461
Expenses (Note 2):
Investment management fee		146
Shareholder servicing:
Class A		58
Class B		10
Class C		23
Class E		––	*
Class I		––	*
Class Y		1
Service fee:
Class A		51
Class B		6
Class C		14
Class E		––	*
Distribution fee:
Class B		19
Class C		43
Class E		––	*
Class Y		1
Registration fees		37
Accounting services fee		23
Audit fees		12
Custodian fees		4
Legal fee		1
Other		6
Total expenses		455
Net investment income		1,006
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net loss on investments		(77	)
Unrealized appreciation in value of investments during the period		432
Net gain on investments		355
Net increase in net assets resulting from operations	$	1,361

*Not shown due to rounding.

See Notes to Financial Statements.

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

	For the six months ended September 30, 2007				For the fiscal year ended March 31, 2007
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	1,006			$	1,640
Realized net loss on investments			(77	)			(63	)
Unrealized appreciation			432				867
Net increase in net assets resulting                        from operations			1,361				2,444
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(750	)			(1,150	)
Class B			(71	)			(123	)
Class C			(160	)			(307	)
Class E			(2	)			NA
Class I			(3	)			NA
Class Y			(20	)			(60	)
Realized gains on investment transactions:
Class A			(––	)			(––	)
Class B			(––	)			(––	)
Class C			(––	)			(––	)
Class E			(––	)			NA
Class I			(––	)			NA
Class Y			(––	)			(––	)
			(1,006	)			(1,640	)
Capital share transactions (Note 5)			12,377				(867	)
Total increase (decrease)			12,732				(63	)
NET ASSETS
Beginning of period			53,432				53,495
End of period		$	66,164			$	53,432
Undistributed net investment income		$	––			$	––

(1)See "Financial Highlights" on pages 129 - 134.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value, beginning of period		$	10.15		$	10.00		$	10.14		$	10.48		$	10.45		$	10.20
Income (loss) from       investment operations:
Net investment income			0.18			0.33			0.30			0.28			0.29			0.36
Net realized and unrealized             gain (loss) on investments			0.05			0.15			(0.14	)		(0.34	)		0.03			0.25
Total from investment operations			0.23			0.48			0.16			(0.06	)		0.32			0.61
Less distributions from:
Net investment income			(0.18	)		(0.33	)		(0.30	)		(0.28	)		(0.29	)		(0.36	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.18	)		(0.33	)		(0.30	)		(0.28	)		(0.29	)		(0.36	)
Net asset value, end of period		$	10.20		$	10.15		$	10.00		$	10.14		$	10.48		$	10.45
Total return(1)			2.27	%		4.89	%		1.59	%		-0.60	%		3.13	%		6.15	%
Net assets, end of period       (in millions)		$49			$35			$33			$38			$35			$40
Ratio of expenses to       average net assets			1.31	%(2)		1.33	%		1.31	%		1.27	%		1.18	%		1.09	%
Ratio of net investment       income to average net assets			3.69	%(2)		3.30	%		2.98	%		2.71	%		2.79	%		3.32	%
Portfolio turnover rate			58	%		41	%		28	%		36	%		30	%		49	%

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

(2)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value, beginning of period		$	10.15		$	10.00		$	10.14		$	10.48		$	10.45		$	10.20
Income (loss) from       investment operations:
Net investment income			0.14			0.24			0.21			0.18			0.19			0.27
Net realized and unrealized             gain (loss) on investments			0.05			0.15			(0.14	)		(0.34	)		0.03			0.25
Total from investment operations			0.19			0.39			0.07			(0.16	)		0.22			0.52
Less distributions from:
Net investment income			(0.14	)		(0.24	)		(0.21	)		(0.18	)		(0.19	)		(0.27	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.14	)		(0.24	)		(0.21	)		(0.18	)		(0.19	)		(0.27	)
Net asset value, end of period		$	10.20		$	10.15		$	10.00		$	10.14		$	10.48		$	10.45
Total return			1.83	%		3.94	%		0.68	%		-1.51	%		2.18	%		5.18	%
Net assets, end of period (in millions)		$5			$5			$5			$7			$6			$5
Ratio of expenses to       average net assets			2.19	%(1)		2.23	%		2.22	%		2.20	%		2.11	%		2.01	%
Ratio of net investment       income to average net assets			2.81	%(1)		2.39	%		2.06	%		1.78	%		1.86	%		2.47	%
Portfolio turnover rate			58	%		41	%		28	%		36	%		30	%		49	%

(1)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value, beginning of period		$	10.15		$	10.00		$	10.14		$	10.48		$	10.45		$	10.20
Income (loss) from       investment operations:
Net investment income			0.14			0.24			0.21			0.19			0.20			0.27
Net realized and unrealized             gain (loss) on investments			0.05			0.15			(0.14	)		(0.34	)		0.03			0.25
Total from investment operations			0.19			0.39			0.07			(0.15	)		0.23			0.52
Less distributions from:
Net investment income			(0.14	)		(0.24	)		(0.21	)		(0.19	)		(0.20	)		(0.27	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.14	)		(0.24	)		(0.21	)		(0.19	)		(0.20	)		(0.27	)
Net asset value, end of period		$	10.20		$	10.15		$	10.00		$	10.14		$	10.48		$	10.45
Total return			1.83	%		3.98	%		0.73	%		-1.45	%		2.23	%		5.22	%
Net assets, end of period       (in millions)		$11			$12			$13			$17			$22			$30
Ratio of expenses to       average net assets			2.19	%(1)		2.20	%		2.17	%		2.14	%		2.05	%		1.98	%
Ratio of net investment       income to average net assets			2.81	%(1)		2.42	%		2.12	%		1.84	%		1.92	%		2.59	%
Portfolio turnover rate			58	%		41	%		28	%		36	%		30	%		49	%

(1)Annualized.

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	10.15
Income from investment operations:
Net investment income			0.19	(2)
Net realized and unrealized gain on investments			0.05	(2)
Total from investment operations			0.24
Less distributions from:
Net investment income			(0.19	)
Capital gains			(0.00	)
Total distributions			(0.19	)
Net asset value, end of period		$	10.20
Total return(3)			2.28	%
Net assets, end of period (in thousands)			$102
Ratio of expenses to average net assets			1.15	%(4)
Ratio of net investment income to average net assets			3.83	%(4)
Portfolio turnover rate			58	%(5)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	10.15
Income from investment operations:
Net investment income			0.29	(2)
Net realized and unrealized gain on investments			0.05	(2)
Total from investment operations			0.34
Less distributions from:
Net investment income			(0.29	)
Capital gains			(0.00	)
Total distributions			(0.29	)
Net asset value, end of period		$	10.20
Total return			3.24	%
Net assets, end of period (in thousands)			$123
Ratio of expenses to average net assets			0.98	%(3)
Ratio of net investment income to average net assets			4.00	%(3)
Portfolio turnover rate			58	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value, beginning of period		$	10.15		$	10.00		$	10.14		$	10.48		$	10.45		$	10.20
Income (loss) from       investment operations:
Net investment income			0.19			0.34			0.31			0.29			0.29			0.36
Net realized and unrealized             gain (loss) on investments			0.05			0.15			(0.14	)		(0.34	)		0.03			0.25
Total from investment operations			0.24			0.49			0.17			(0.05	)		0.32			0.61
Less distributions from:
Net investment income			(0.19	)		(0.34	)		(0.31	)		(0.29	)		(0.29	)		(0.36	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.19	)		(0.34	)		(0.31	)		(0.29	)		(0.29	)		(0.36	)
Net asset value, end of period		$	10.20		$	10.15		$	10.00		$	10.14		$	10.48		$	10.45
Total return			2.35	%		5.06	%		1.72	%		-0.49	%		3.18	%		6.14	%
Net assets, end of period (in millions)		$1			$1				$2		$2			$2			$2
Ratio of expenses to       average net assets			1.17	%(1)		1.17	%		1.19	%		1.16	%		1.13	%		1.09	%
Ratio of net investment income       to average net assets			3.83	%(1)		3.44	%		3.10	%		2.82	%		2.83	%		3.42	%
Portfolio turnover rate			58	%		41	%		28	%		36	%		30	%		49	%

(1)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY MID CAP GROWTH FUND

Portfolio Highlights

On September 30, 2007, the Ivy Mid Cap Growth Fund had net assets totaling $158,629,051 invested in a diversified portfolio of:

91.55%	Domestic Common Stock
5.23%	Cash and Cash Equivalents and Options
3.22%	Foreign Common Stock

Sector Weightings

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

Health Care Stocks	$	20.36
Technology Stocks	$	14.20
Financial Services Stocks	$	13.34
Business Equipment and Services Stocks	$	10.60
Retail Stocks	$	9.02
Energy Stocks	$	5.95
Consumer Nondurables Stocks	$	5.66
Capital Goods Stocks	$	5.37
Cash and Cash Equivalents and Options	$	5.23
Consumer Services Stocks	$	2.97
Transportation Stocks	$	2.57
Consumer Durables Stocks	$	2.54
Miscellaneous Stocks	$	2.19

The Investments of Ivy Mid Cap Growth Fund
September 30, 2007                                                                                                     (Unaudited)
COMMON STOCKS	Shares			Value
Banks - 6.43%
Northern Trust Corporation		75,300	$	4,992,014
Signature Bank*		49,200		1,731,348
Synovus Financial Corp.		123,950		3,476,798
				10,200,160
Beverages - 1.63%
Brown-Forman Corporation, Class B		34,450		2,580,649
Business Equipment and Services - 4.09%
Akamai Technologies, Inc.*		51,550		1,480,516
Bucyrus International, Inc., Class A		18,100		1,319,761
Stericycle, Inc.*		64,500		3,684,563
				6,484,840
Capital Equipment - 1.86%
IDEX Corporation		81,263		2,957,142
Chemicals - Specialty - 1.00%
Air Products and Chemicals, Inc.		16,200		1,583,712
Computers - Micro - 4.78%
Apple Inc.*		35,950		5,517,786
Sun Microsystems, Inc.*		367,800		2,065,197
				7,582,983
Computers - Peripherals - 1.00%
Electronic Arts Inc.*		28,400		1,590,684
Consumer Electronics - 1.88%
Research In Motion Limited*		30,300		2,985,459
Cosmetics and Toiletries - 0.72%
Bare Escentuals, Inc.*		45,650		1,135,315
Electronic Components - 8.42%
Broadcom Corporation, Class A*		91,525		3,335,629
MEMC Electronic Materials, Inc.*		26,650		1,568,619
Microchip Technology Incorporated		81,150		2,945,745
Network Appliance, Inc.*		115,200		3,100,608
PMC-Sierra, Inc.*		286,100		2,401,810
				13,352,411
Farm Machinery - 0.79%
AGCO Corporation*		24,550		1,246,404
Food and Related - 3.31%
Hershey Foods Corporation		45,350		2,104,694
Wm. Wrigley Jr. Company		49,100		3,153,693
				5,258,387
Health Care - Drugs - 3.10%
Allergan, Inc.		76,400		4,925,508
Health Care - General - 10.92%
DENTSPLY International Inc.		84,600		3,524,013
Gen-Probe Incorporated*		24,650		1,639,595
Henry Schein, Inc.*		78,000		4,741,230
Hologic, Inc.*		38,550		2,350,394
Kyphon Inc.*		34,200		2,393,829
St. Jude Medical, Inc.*		7,300		321,711
Zimmer Holdings, Inc.*		29,000		2,348,710
				17,319,482
Hospital Supply and Management - 6.34%
C. R. Bard, Inc.		48,900		4,312,491
Cytyc Corporation*		63,150		3,006,571
Laboratory Corporation of America Holdings*		35,000		2,738,050
				10,057,112
Insurance - Property and Casualty - 2.85%
AXIS Capital Holdings Limited		54,500		2,120,595
Ambac Financial Group, Inc.		38,100		2,396,871
				4,517,466
Metal Fabrication - 2.72%
Fastenal Company		94,950		4,314,053
Motor Vehicles - 0.66%
Harley-Davidson, Inc.		22,750		1,051,278
Petroleum - Domestic - 1.34%
XTO Energy Inc. (A)		34,416		2,128,285
Petroleum - International - 1.64%
Noble Energy, Inc. (A)		37,150		2,601,986
Petroleum - Services - 2.97%
BJ Services Company (A)		29,350		779,242
Complete Production Services, Inc. (A)*		42,050		861,184
National Oilwell Varco, Inc. (A)*		10,750		1,553,375
Smith International, Inc. (A)		21,350		1,524,390
				4,718,191
Publishing - 2.97%
Getty Images, Inc.*		57,700		1,606,368
Meredith Corporation		54,250		3,108,525
				4,714,893
Restaurants - 3.20%
Chipotle Mexican Grill, Inc., Class A*		11,900		1,405,747
P.F. Chang's China Bistro, Inc.*		59,800		1,768,884
YUM! Brands, Inc.		56,400		1,908,012
				5,082,643
Retail - Food Stores - 0.96%
Longs Drug Stores Corporation		30,800		1,529,836
Retail - General Merchandise - 2.06%
Saks Incorporated		190,150		3,261,073
Retail - Specialty Stores - 2.80%
Coldwater Creek Inc.*		135,900		1,475,194
J. Crew Group, Inc.*		71,350		2,961,025
				4,436,219
Security and Commodity Brokers - 4.06%
CME Group Inc.		7,050		4,140,817
TD Ameritrade Holding Corporation*		126,450		2,302,654
				6,443,471
Timesharing and Software - 6.51%
eBay Inc.*		89,200		3,483,706
Global Payments Inc.		71,850		3,177,207
Paychex, Inc.		89,200		3,658,538
				10,319,451
Trucking and Shipping - 2.57%
C.H. Robinson Worldwide, Inc.		43,600		2,366,172
Expeditors International of Washington, Inc.		36,050		1,704,083
				4,070,255
Utilities - Telephone - 1.19%
MetroPCS Communications, Inc.*		68,950		1,880,956
TOTAL COMMON STOCKS - 94.77%			$	150,330,304
(Cost: $101,466,279)

PUT OPTIONS - 0.00%	Number of Contracts
Lehman Brothers Inc. Custom Energy Basket Collar,       October 104.95, Expires 10-22-07		80,673	$	4,033
(Cost: $151,665)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Commercial Paper
Finance Companies - 2.26%
Prudential Funding LLC,
4.75%, 10-1-07	$	3,589		3,589,000
Food and Related - 0.95%
ConAgra Foods, Inc.,
5.23%, 10-3-07		1,500		1,499,564
Health Care - General - 1.89%
Johnson & Johnson,
4.73%, 10-9-07		3,000		2,996,847
Total Commercial Paper - 5.10%				8,085,411
Commercial Paper (backed by irrevocable       bank letter of credit) - 0.94%
Finance Companies
ED&F Man Treasury Management PLC            (Royal Bank of Scotland PLC (The)),
5.0%, 10-2-07		1,500		1,499,792
TOTAL SHORT-TERM SECURITIES - 6.04%			$	9,585,203
(Cost: $9,585,203)
TOTAL INVESTMENT SECURITIES - 100.81%			$	159,919,540
(Cost: $111,203,147)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.81%)				(1,290,489	)
NET ASSETS - 100.00%			$	158,629,051

Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
(A)Security serves as cover for the following written call option outstanding at September 30, 2007. (See Note 6 to financial statements):
	Underlying Security	Contracts Subject to Call	Expiration Month/ Exercise Price	Premium Received			Market Value
	Lehman Brothers Inc. Custom       Energy Basket Collar	80,673	October/124		$	194,422	$	157,312
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes.

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

ASSETS
Investment securities - at value (cost - $111,203) (Notes 1 and 3)	$	159,920
Receivables:
Investment securities sold		1,838
Fund shares sold		192
Dividends and interest		98
Prepaid and other assets		43
Total assets		162,091
LIABILITIES
Payable for investment securities purchased		2,884
Payable to Fund shareholders		257
Outstanding written options at market (premium received - $194) (Note 6)		157
Due to custodian		62
Accrued shareholder servicing (Note 2)		51
Accrued management fee (Note 2)		11
Accrued accounting services fee (Note 2)		6
Accrued distribution and service fees (Note 2)		4
Other		30
Total liabilities		3,462
Total net assets	$	158,629
NET ASSETS
$0.01 par value capital stock:
Capital stock	$	112
Additional paid-in capital		138,657
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(523	)
Accumulated undistributed net realized loss on investment transactions		(28,371	)
Net unrealized appreciation in value of investments		48,754
Net assets applicable to outstanding units of capital	$	158,629
Net asset value per share (net assets divided by shares outstanding):
Class A	$14.33
Class B	$13.29
Class C	$13.62
Class E	$14.30
Class I	$14.64
Class R	$14.30
Class Y	$14.53
Capital shares outstanding:
Class A		8,478
Class B		858
Class C		913
Class E		21
Class I		39
Class R		9
Class Y		843
Capital shares authorized		350,000

See Notes to Financial Statements.

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

INVESTMENT LOSS
Income (Note 1B):
Dividends	$	520
Interest and amortization		259
Total income		779
Expenses (Note 2):
Investment management fee		641
Shareholder servicing:
Class A		181
Class B		30
Class C		21
Class E		1
Class I		1
Class R		––	*
Class Y		9
Service fee:
Class A		144
Class B		14
Class C		16
Class R		––	*
Distribution fee:
Class B		43
Class C		47
Class E		––	*
Class R		––	*
Class Y		14
Accounting services fee		35
Audit fees		16
Custodian fees		5
Legal fees		1
Other		79
Total		1,298
Less expenses in excess of voluntary limit (Note 2)		(10	)
Total expenses		1,288
Net investment loss		(509	)
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		6,811
Realized net loss on written options		(487	)
Realized net gain on investments		6,324
Unrealized appreciation in value of securities during the period		7,542
Unrealized appreciation in value of written options during the period		32
Unrealized appreciation in value of investments during the period		7,574
Net gain on investments		13,898
Net increase in net assets resulting from operations	$	13,389

*Not shown due to rounding.

See Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY MID CAP GROWTH FUND
      (In Thousands)                                                                                               (Unaudited)

	For the six months ended September 30, 2007				For the fiscal year ended March 31, 2007
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss		$	(509	)		$	(823	)
Realized net gain on investments			6,324				6,135
Unrealized appreciation (depreciation)			7,574				(868	)
Net increase in net assets                     resulting from operations			13,389				4,444
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(––	)			(––	)
Class B			(––	)			(––	)
Class C			(––	)			(––	)
Class E			(––	)			NA
Class I			(––	)			NA
Class R			(––	)			(––	)
Class Y			(––	)			(––	)
Realized gains on investment transactions:
Class A			(––	)			(––	)
Class B			(––	)			(––	)
Class C			(––	)			(––	)
Class E			(––	)			NA
Class I			(––	)			NA
Class R			(––	)			(––	)
Class Y			(––	)			(––	)
			(––	)			(––	)
Capital share transactions (Note 5)			7,772				(6,750	)
Total increase (decrease)			21,161				(2,306	)
NET ASSETS
Beginning of period			137,468				139,774
End of period		$	158,629			$	137,468
Undistributed net investment loss		$	(523	)		$	(21	)

(1)See "Financial Highlights" on pages 143 - 149.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	13.07		$	12.59		$	9.99		$	9.09		$	6.67		$	8.91
Income (loss) from       investment operations:
Net investment loss			(0.04	)		(0.06	)		(0.04	)	(0.09		)	(0.08		)	(0.05		)
Net realized and             unrealized gain (loss)             on investments			1.30			0.54			2.64			0.99			2.50		(2.19		)
Total from investment       operations			1.26			0.48			2.60			0.90			2.42		(2.24		)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)*
Capital gains			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)
Total distributions			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)*
Net asset value,       end of period		$	14.33		$	13.07		$	12.59		$	9.99		$	9.09		$	6.67
Total return(1)			9.63	%		3.89	%		26.03	%		9.90	%	36.28		%	-25.13		%
Net assets, end of period       (in millions)		$122			$104			$105			$68			$50			$14
Ratio of expenses to       average net assets       including voluntary       expense waiver			1.59	%(2)		1.59	%		1.62	%		1.65	%		1.84	%		1.17	%
Ratio of net investment       loss to average net assets       including voluntary       expense waiver			-0.56	%(2)		-0.48	%		-0.30	%	-0.95		%	-1.20		%	-0.49		%
Ratio of expenses to       average net assets       excluding voluntary       expense waiver			1.59	%(2)(3)		1.59	%(3)		1.62	%(3)		1.70	%		1.89	%		2.02	%
Ratio of net investment       loss to average net assets       excluding voluntary       expense waiver			-0.56	%(2)(3)		-0.48	%(3)		-0.30	%(3)	-1.00		%	-1.25		%	-1.34		%
Portfolio turnover rate			21	%		25	%		28	%		25	%		24	%		36	%

*Not shown due to rounding.

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

(2)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	12.18		$	11.85		$	9.50		$	8.75		$	6.49		$	8.81
Income (loss) from       investment operations:
Net investment loss			(0.13	)		(0.23	)		(0.18	)	(0.23		)	(0.17		)	(0.14		)
Net realized and             unrealized gain             (loss) on investments			1.24			0.56			2.53			0.98			2.43		(2.18		)
Total from investment       operations			1.11			0.33			2.35			0.75			2.26		(2.32		)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)
Capital gains			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)
Total distributions			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)
Net asset value, end of period		$	13.29		$	12.18		$	11.85		$	9.50		$	8.75		$	6.49
Total return			9.11	%		2.79	%		24.74	%		8.57	%	34.82		%	-26.33		%
Net assets, end of period       (in millions)		$11			$11			$12			$11			$12			$2
Ratio of expenses to       average net assets       including voluntary       expense waiver			2.57	%(1)		2.62	%		2.70	%		2.81	%		3.04	%		2.73	%
Ratio of net investment       loss to average net       assets including voluntary       expense waiver			-1.53	%(1)		-1.52	%		-1.43	%	-2.12		%	-2.37		%	-2.05		%
Ratio of expenses to       average net assets       excluding voluntary       expense waiver			2.57	%(1)(2)		2.62	%(2)		2.70	%(2)		2.81	%(2)		3.09	%		3.58	%
Ratio of net investment       loss to average net       assets excluding voluntary       expense waiver			-1.53	%(1)(2)		-1.52	%(2)		-1.43	%(2)	-2.12		%(2)	-2.43		%	-2.90		%
Portfolio turnover rate			21	%		25	%		28	%		25	%		24	%		36	%

(1)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	12.48		$	12.10		$	9.67		$	8.86		$	6.56		$	8.85
Income (loss) from       investment operations:
Net investment loss			(0.11	)		(0.19	)		(0.12	)	(0.15		)	(0.13		)	(0.10		)
Net realized and             unrealized gain (loss)             on investments			1.25			0.57			2.55			0.96			2.43		(2.19		)
Total from investment       operations			1.14			0.38			2.43			0.81			2.30		(2.29		)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)
Capital gains			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)
Total distributions			(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)	(0.00		)
Net asset value, end of period		$	13.62		$	12.48		$	12.10		$	9.67		$	8.86		$	6.56
Total return			9.21	%		3.14	%		25.13	%		9.14	%	35.06		%	-25.88		%
Net assets, end of period       (in millions)		$12			$12			$14			$11			$10			$3
Ratio of expenses to       average net assets       including voluntary       expense waiver			2.35	%(1)		2.35	%		2.35	%		2.35	%		2.59	%		2.18	%
Ratio of net investment       loss to average net       assets including voluntary       expense waiver			-1.32	%(1)		-1.25	%		-1.09	%	-1.66		%	-1.98		%	-1.50		%
Ratio of expenses to       average net assets       excluding voluntary       expense waiver			2.37	%(1)(2)		2.42	%		2.40	%		2.46	%		2.64	%		3.03	%
Ratio of net investment       loss to average net       assets excluding voluntary       expense waiver			-1.34	%(1)(2)		-1.32	%		-1.14	%	-1.77		%	-2.03		%	-2.35		%
Portfolio turnover rate			21	%		25	%		28	%		25	%		24	%		36	%

(1)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through 9-30-07
Net asset value, beginning of period		$	13.08
Income (loss) from investment operations:
Net investment loss			(0.09	)(2)
Net realized and unrealized gain on investments			1.31	(2)
Total from investment operations			1.22
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	14.30
Total return(3)			8.99	%
Net assets, end of period (in thousands)		$297
Ratio of expenses to average net assets			2.27	%(4)
Ratio of net investment loss to average net assets			-1.25	%(4)
Portfolio turnover rate			21	%(5)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through 9-30-07
Net asset value, beginning of period		$	13.23
Income (loss) from investment operations:
Net investment loss			(0.01	)(2)
Net realized and unrealized gain on investments			1.42	(2)
Total from investment operations			1.41
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	14.64
Total return			10.24	%
Net assets, end of period (in millions)		$1
Ratio of expenses to average net assets			1.16	%(3)
Ratio of net investment loss to average net assets			-0.11	%(3)
Portfolio turnover rate			21	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended 9-30-07				For the fiscal year ended 3-31-07				For the period from 12-29-05(1) to 3-31-06
Net asset value, beginning of period		$	13.05			$	12.58			$	11.77
Income (loss) from investment operations:
Net investment income (loss)			(0.05	)			(0.07	)			0.02
Net realized and unrealized             gain on investments			1.30				0.54				0.79
Total from investment operations			1.25				0.47				0.81
Less distributions from:
Net investment income			(0.00	)			(0.00	)			(0.00	)
Capital gains			(0.00	)			(0.00	)			(0.00	)
Total distributions			(0.00	)			(0.00	)			(0.00	)
Net asset value, end of period		$	14.30			$	13.05			$	12.58
Total return			9.58	%			3.74	%			6.88	%
Net assets, end of period (in thousands)		$129				$111				$107
Ratio of expenses to average net assets			1.67	%(2)			1.71	%			1.75	%(2)
Ratio of net investment income       (loss) to average net assets			-0.63	%(2)			-0.59	%			0.73	%(2)
Portfolio turnover rate			21	%			25	%			28	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the fiscal year ended March 31, 2006.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	13.23		$	12.70		$	10.04		$	9.09		$	6.67		$	8.91
Income (loss) from       investment operations:
Net investment income (loss)			(0.04	)		(0.03	)		0.05	(1)		(0.06	)	(0.05		)	(0.01		)
Net realized and unrealized             gain (loss) on investments			1.34			0.56			2.61	(1)		1.01			2.47		(2.20		)
Total from investment operations			1.30			0.53			2.66			0.95			2.42		(2.21		)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.03		)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.00		)
Total distributions			(0.00	)		(0.00	)		(0.00	)		(0.00	)	(0.00		)	(0.03		)
Net asset value, end of period		$	14.53		$	13.23		$	12.70		$	10.04		$	9.09		$	6.67
Total return			9.83	%		4.17	%		26.50	%		10.45	%	36.28		%	-24.86		%
Net assets, end of period       (in thousands)	$12,249				$9,935			$9,009			$1,961		$1,363				$329
Ratio of expenses to       average net assets       including voluntary       expense waiver			1.25	%(2)		1.25	%		1.25	%		1.25	%		1.72	%		0.86	%
Ratio of net investment       income (loss) to average       net assets including       voluntary expense waiver			-0.22	%(2)		-0.15	%		0.43	%		-0.55	%	-0.91		%	-0.18		%
Ratio of expenses to       average net assets       excluding voluntary       expense waiver			1.41	%(2)		1.42	%		1.43	%		1.48	%		1.77	%		1.71	%
Ratio of net investment       income (loss) to average       net assets excluding       voluntary expense waiver			-0.38	%(2)		-0.32	%		0.25	%		-0.78	%	-0.96		%	-1.03		%
Portfolio turnover rate			21	%		25	%		28	%		25	%		24	%		36	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY MONEY MARKET FUND

Portfolio Highlights

On September 30, 2007, Ivy Money Market Fund had net assets totaling $83,824,975.

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

Corporate Obligations - Commercial Paper	$	34.94
Corporate Obligations - Notes	$	27.09
Municipal Obligations - Taxable	$	15.48
Corporate Obligations - Commercial Paper (backed by       irrevocable bank letter of credit)	$	13.39
Corporate Obligations - Certificates of Deposit	$	4.41
United States Government Agency Obligations	$	4.10
Cash and Cash Equivalents and Other Government Securities	$	0.59

Please remember that an investment in the Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

The Investments of Ivy Money Market Fund
September 30, 2007                                                                                                        (Unaudited)
CORPORATE OBLIGATIONS	Principal Amount in Thousands			Value
Certificate of Deposit - 4.41%
Banks
Barclays Bank PLC,
5.37%, 4-15-08	$	1,000	$	1,000,000
Citibank, N.A.:
5.32%, 11-9-07		500		500,000
5.47%, 11-27-07		500		500,000
5.62%, 12-7-07		1,100		1,100,000
Royal Bank of Scotland PLC (The),
5.68%, 12-14-07		600		600,446
				3,700,446
Commercial Paper
Banks - 5.08%
Bank of America Corporation,
5.45%, 11-16-07		700		695,125
Barclays U.S. Funding Corp.,
5.35%, 1-17-08		2,000		1,967,900
Lloyds TSB Bank PLC,
5.59%, 10-17-07		1,600		1,596,025
				4,259,050
Beverages - 3.31%
Coca-Cola Company (The),
5.22%, 12-6-07		2,800		2,773,204
Capital Equipment - 4.02%
Deere (John) Capital Corporation:
5.24%, 10-16-07		1,000		997,817
5.25%, 11-5-07		500		497,448
5.18%, 11-20-07		1,893		1,879,381
				3,374,646
Electrical Equipment - 2.37%
W.W. Grainger, Inc.,
5.25%, 11-20-07		2,000		1,985,417
Finance Companies - 2.93%
PACCAR Financial Corp.,
5.25%, 11-15-07		975		968,601
Unilever Capital Corporation:
5.34%, 12-10-07		1,000		989,617
5.31%, 12-13-07		500		494,616
				2,452,834
Food and Related - 5.17%
McCormick & Co. Inc.:
5.22%, 11-28-07		1,500		1,487,385
5.15%, 2-29-08		1,400		1,369,758
Nestle Capital Corp.:
5.3%, 11-14-07		256		254,342
5.09%, 3-13-08		1,250		1,221,015
				4,332,500
Health Care - Drugs - 1.07%
GlaxoSmithKline Finance plc,
5.4%, 10-5-07		900		899,460
Household - General Products - 2.38%
Procter & Gamble International Funding S.C.A.            (Procter & Gamble Company (The)):
5.27%, 10-10-07		1,000		998,682
5.25%, 11-19-07		1,000		992,854
				1,991,536
Mining - 1.41%
BHP Billiton Finance (USA) Limited            (BHP Billiton Limited),
5.1%, 10-1-07		1,182		1,182,000
Multiple Industry - 3.86%
General Electric Capital Corporation,
5.25%, 10-16-07		1,250		1,247,266
Honeywell International Inc.:
5.27%, 11-8-07		500		497,219
5.25%, 11-15-07		1,500		1,490,156
				3,234,641
Security and Commodity Brokers - 3.34%
UBS Finance Delaware LLC (UBS AG):
5.25%, 10-23-07		1,100		1,096,471
5.25%, 10-26-07		800		797,083
5.48%, 12-12-07		380		375,835
5.31%, 3-6-08		250		244,210
4.775%, 6-24-08		300		289,376
				2,802,975
Total Commercial Paper - 34.94%				29,288,263
Commercial Paper (backed by irrevocable       bank letter of credit)
Finance Companies - 8.63%
NATC California LLC (Suntrust Bank),
5.24%, 10-11-07		1,500		1,497,817
River Fuel Company #2, Inc. (Bank of New York (The)),
5.25%, 10-31-07		1,910		1,901,644
River Fuel Funding Company #3, Inc.            (Bank of New York (The)),
5.09%, 1-31-08		152		149,378
River Fuel Trust #1 (Bank of New York (The)):
5.47%, 10-31-07		500		497,721
5.59%, 10-31-07		700		696,739
Vehicle Services of America Ltd. (Bank of America, N.A.),
5.43%, 10-22-07		2,500		2,492,081
				7,235,380
Food and Related - 4.76%
COFCO Capital Corp. (Rabobank Nederland):
5.65%, 10-18-07		1,000		997,332
5.77%, 10-18-07		3,000		2,991,826
				3,989,158
Total Commercial Paper (backed by irrevocable       bank letter of credit) - 13.39%				11,224,538
Notes
Banks - 4.40%
Barclays Bank PLC, New York Branch,
5.35%, 5-5-08		500		500,000
Lloyds TSB Bank PLC,
5.7675%, 10-9-07 (A)		655		655,000
U.S. Bank, N.A.,
6.3%, 7-15-08		825		830,429
Wells Fargo & Company:
5.78%, 10-2-07 (A)		500		500,000
5.8325%, 10-15-07 (A)		1,200		1,200,000
				3,685,429
Business Equipment and Services - 0.88%
Playworld Systems Incorporated, Taxable Variable            Rate Demand/Fixed Rate Revenue Bonds,            Series A of 1998 (Wachovia Bank, N.A.),
5.25%, 10-3-07 (A)		740		740,000
Capital Equipment - 0.48%
Deere (John) Capital Corporation,
5.3825%, 12-27-07		400		400,000
Computers - Main and Mini - 2.09%
International Business Machines Corporation:
5.68%, 10-3-07 (A)		750		750,000
5.83%, 10-9-07 (A)		1,000		1,000,000
				1,750,000
Finance Companies - 7.25%
Capital Markets Access Company LC, Taxable Variable            Rate Demand Bonds (LSPB Real Estate, LLC Project),            Series 2007 (Wachovia Bank, N.A.),
5.2%, 10-4-07 (A)		1,380		1,380,000
Caterpillar Financial Services Corporation,
3.8%, 2-8-08		750		745,545
P&W Holdings, LLC, Taxable Variable Rate            Demand Bonds, Series 2005 (Wachovia Bank, N.A.),
5.13%, 10-4-07 (A)		250		250,000
Park Street Properties I, LLC, Taxable            Variable Rate Demand Notes, Series 2004            (University of Wisconsin - Madison Projects),            (U.S. Bank, National Association),
5.13%, 10-4-07 (A)		390		390,000
Toyota Motor Credit Corporation:
5.24%, 5-2-08		1,800		1,800,000
5.28%, 5-23-08		665		665,000
5.41%, 6-16-08		500		500,000
Unilever Capital Corporation,
5.79625%, 10-12-07 (A)		350		350,000
				6,080,545
Forest and Paper Products - 0.60%
Kimberly-Clark Corporation,
5.263%, 12-19-07		500		500,000
Health Care - General - 0.85%
B & D Associates, LLP and Eye Associates of            Boca Raton, P.A., Taxable Variable Rate            Demand Bonds (B& D Associates Project),            Series 2005 (Wachovia Bank, N.A.),
5.13%, 10-4-07 (A)		710		710,000
Household - General Products - 1.04%
Watts Brothers Frozen Foods, L.L.C., Variable            Rate Demand Taxable Revenue Bonds, 1997            (U.S. Bank of Washington, National Association),
5.15%, 10-4-07 (A)		869		869,000
Multiple Industry - 4.00%
3M Company,
5.656%, 12-12-07 (B)		1,500		1,500,876
Coweta Summit Associates, LLC, Taxable            Revenue Bonds, Series 2005 (SunTrust Bank),
5.3%, 10-3-07 (A)		1,600		1,600,000
General Electric Capital Corporation,
4.125%, 3-4-08		250		248,579
				3,349,455
Non-Residential Construction - 0.36%
Healthcare Property Group, LLC, Taxable Variable            Rate Bonds, Series 2005 (SunTrust Bank),
5.3%, 10-3-07 (A)		300		300,000
Real Estate Investment Trust - 0.91%
Arden Realty Limited Partnership,
7.0%, 11-15-07		765		766,497
Retail - General Merchandise - 2.75%
Wal-Mart Stores, Inc.,
5.933%, 6-1-08		2,300		2,307,699
Security and Commodity Brokers - 0.89%
UBS AG,
5.4%, 2-1-08		750		749,524
Trucking and Shipping - 0.59%
Volpe Family Partnership, L.P., Taxable Variable            Rate Demand Revenue Bonds, Series of 2001            (Wachovia Bank, N.A.),
5.18%, 10-4-07 (A)		495		495,000
Total Notes - 27.09%				22,703,149
TOTAL CORPORATE OBLIGATIONS - 79.83%			$	66,916,396
(Cost: $66,916,396)

MUNICIPAL OBLIGATIONS - TAXABLE
Arkansas - 1.05%
City of Little Rock, Arkansas, Taxable Variable Rate Demand       Revenue Bonds (Ringwood Containers, L.P. Project),       Series 2006A (SunTrust Bank),
5.3%, 10-3-07 (A)	880		880,000
California - 9.66%
California Pollution Control Financing Authority,       Environmental Improvement Revenue Bonds:
Air Products Manufacturing Corporation,       Taxable Series 1997A,
5.57%, 10-3-07	3,200		3,200,000
Atlantic Richfield Company Project,       Series 1997 (Taxable), (BP p.l.c.),
5.3%, 10-4-07	3,700		3,700,000
County of Sacramento, Taxable Pension Funding       Bonds, Series 1995B (Bayerische Landesbank       Girozentrale, New York Branch),
5.25%, 10-3-07 (A)	1,200		1,200,000
			8,100,000
Georgia - 3.58%
Municipal Electric Authority of Georgia, General Resolution       Projects Bond Anticipation Notes, Series B (Taxable),       (Bayerische Landesbank, New York Branch, Wachovia       Bank, National Association and WestLB AG,       New York Branch):
5.38%, 10-15-07	1,500		1,500,000
5.56%, 10-17-07	1,500		1,500,000
			3,000,000
Minnesota - 1.19%
City of Plymouth, Minnesota, Health Facilities Revenue       Bonds, WestHealth Taxable Bonds, Series 1994B       (Financial Security Assurance Inc.),
5.1%, 10-4-07 (A)	1,000		1,000,000
TOTAL MUNICIPAL OBLIGATIONS - TAXABLE - 15.48%		$	12,980,000
(Cost: $12,980,000)

UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS
Federal Home Loan Bank,
5.375%, 9-5-08	650		650,000
Federal Home Loan Mortgage Corporation,
5.375%, 2-12-08	750		750,000
Overseas Private Investment Corporation,
5.15%, 10-3-07 (A)	2,035		2,034,884
TOTAL UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS - 4.10%		$	3,434,884
(Cost:$3,434,884)
TOTAL INVESTMENT SECURITIES - 99.41%		$	83,331,280
(Cost: $83,331,280)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.59%			493,695
NET ASSETS - 100.00%		$	83,824,975

Notes to Schedule of Investments

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

(B)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been determined to be liquid under guidelines established by the Board of Directors. At September 30, 2007, the total value of this security amounted to 1.79% of net assets.

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

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

ASSETS
Investment securities - at value (cost - $83,331) (Note 1)	$	83,331
Cash		37
Receivables:
Fund shares sold		958
Interest		482
Prepaid and other assets		36
Total assets		84,844
LIABILITIES
Payable to Fund shareholders		942
Dividends payable		31
Accrued shareholder servicing (Note 2)		20
Accrued accounting services fee (Note 2)		4
Accrued management fee (Note 2)		3
Accrued distribution and service fees (Note 2)		1
Other		18
Total liabilities		1,019
Total net assets	$	83,825
NET ASSETS
$0.01 par value capital stock:
Capital stock	$	838
Additional paid-in capital		82,987
Net assets applicable to outstanding units of capital	$	83,825
Net asset value per share (net assets divided by shares outstanding):
Class A	$1.00
Class B	$1.00
Class C	$1.00
Class E	$1.00
Capital shares outstanding:
Class A		71,014
Class B		3,614
Class C		8,786
Class E		411
Capital shares authorized	420,000

See Notes to Financial Statements.

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

INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	2,023
Expenses (Note 2):
Investment management fee		150
Shareholder servicing:
Class A		92
Class B		4
Class C		6
Class E		––	*
Distribution fee:
Class B		11
Class C		27
Registration fees		33
Accounting services fee		23
Service fee:
Class B		4
Class C		9
Audit fees		12
Custodian fees		3
Legal fees		1
Other		17
Total expenses		392
Net investment income		1,631
Net increase in net assets resulting from operations	$	1,631

See Notes to Financial Statements.

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

	For the six months ended September 30,				For the fiscal year ended March 31,
	2007				2007
INCREASE IN NET ASSETS
Operations:
Net investment income		$	1,631		$	2,758
Net increase in net assets                       resulting from operations			1,631			2,758
Distributions to shareholders from
net investment income (Note 1F):(1)
Class A			(1,438	)		(2,380	)
Class B			(58	)		(143	)
Class C			(129	)		(235	)
Class E			(6	)		NA
			(1,631	)		(2,758	)
Capital share transactions (Note 5)			15,275			19,177
Total increase			15,275			19,177
NET ASSETS
Beginning of period			68,550			49,373
End of period		$	83,825		$	68,550
Undistributed net investment income		$	––		$	––

(1)See "Financial Highlights" on pages 161 - 164.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income			0.0223			0.0435			0.0288			0.0083			0.0061			0.0124
Less dividends declared		(	0.0223)		(	0.0435)		(	0.0288)		(	0.0083)		(	0.0061)		(	0.0124)
Net asset value, end of period		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return			2.27	%		4.44	%		2.87	%		0.82	%		0.62	%		1.25	%
Net assets, end of period       (in millions)			$71			$59			$44			$39			$45			$10
Ratio of expenses to average       net assets including       voluntary expense waiver			0.93	%(1)		0.88	%(2)		0.91	%(2)		0.89	%(2)		0.67	%(2)		0.52	%(3)
Ratio of net investment income to       average net assets including       voluntary expense waiver			4.47	%(1)		4.38	%(2)		2.87	%(2)		0.81	%(2)		0.48	%(2)		1.26	%(3)
Ratio of expenses to average       net assets excluding       voluntary expense waiver			0.93	%(1)(4)		0.98	%(2)		1.06	%(2)		1.20	%(2)		0.87	%(2)		0.92	%(3)
Ratio of net investment income to       average net assets excluding       voluntary expense waiver			4.47	%(1)(4)		4.28	%(2)		2.72	%(2)		0.50	%(2)		0.28	%(2)		0.86	%(3)

(1)Annualized.

(2)Voluntary waiver of expenses to maintain yield of 0.01%.

(3)Based on voluntary waiver of management fees due to Fund net assets below $25 million. See Note 2.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income			0.0177			0.0338			0.0184			0.0014			0.0002			0.0015
Less dividends declared		(	0.0177)		(	0.0338)		(	0.0184)		(	0.0014)		(	0.0002)		(	0.0015)
Net asset value, end of period		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return			1.81	%		3.44	%		1.82	%		0.14	%		0.02	%		0.16	%
Net assets, end of period       (in millions)		$4			$4			$2			$1			$1			$1
Ratio of expenses to average       net assets including       voluntary expense waiver			1.83	%(1)		1.86	%		1.95	%		1.57	%(2)		1.14	%(2)		1.59	%(3)
Ratio of net investment income to       average net assets including       voluntary expense waiver			3.57	%(1)		3.43	%		1.86	%		0.12	%(2)		0.02	%(2)		0.14	%(3)
Ratio of expenses to average       net assets excluding       voluntary expense waiver			1.83	%(1)(4)		1.86	%(4)		1.95	%(4)		1.95	%(2)		1.34	%(2)		2.06	%(3)
Ratio of net investment income       (loss) to average net assets       excluding voluntary       expense waiver			3.57	%(1)(4)		3.43	%(4)		1.86	%(4)	-0.26		%(2)	-0.18		%(2)	-0.33		%(3)

(1)Annualized.

(2)Voluntary waiver of expenses to maintain yield of 0.01%.

(3)Based on voluntary waiver of management fees due to Fund net assets below $25 million. See Note 2.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income			0.0181			0.0340			0.0185			0.0013			0.0002			0.0019
Less dividends declared		(	0.0181)		(	0.0340)		(	0.0185)		(	0.0013)		(	0.0002)		(	0.0019)
Net asset value, end of period		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return			1.84	%		3.45	%		1.83	%		0.12	%		0.02	%		0.20	%
Net assets, end of period       (in millions)		$9			$6			$3			$5			$6			$10
Ratio of expenses to average       net assets including       voluntary expense waiver			1.78	%(1)		1.84	%		1.94	%		1.58	%(2)		1.16	%(2)		1.56	%(3)
Ratio of net investment income to       average net assets including       voluntary expense waiver			3.63	%(1)		3.45	%		1.75	%		0.12	%(2)		0.03	%(2)		0.18	%(3)
Ratio of expenses to average       net assets excluding       voluntary expense waiver			1.78	%(1)(4)		1.84	%(4)		1.94	%(4)		1.99	%(2)		1.35	%(2)		1.99	%(3)
Ratio of net investment income       (loss) to average net assets       excluding voluntary       expense waiver			3.63	%(1)(4)		3.45	%(4)		1.75	%(4)	-0.29		%(2)	-0.17		%(2)	-0.25		%(3)

(1)Annualized.

(2)Voluntary waiver of expenses to maintain yield of 0.01%.

(3)Based on voluntary waiver of management fees due to Fund net assets below $25 million. See Note 2.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	1.00
Net investment income			0.0220
Less dividends declared		(	0.0220)
Net asset value, end of period		$	1.00
Total return			2.20	%
Net assets, end of period (in thousands)		$411
Ratio of expenses to average net assets			0.93	%(2)
Ratio of net investment income to average net assets			4.47	%(2)

(1)Commencement of operations of the class.

(2)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY MUNICIPAL BOND FUND

Portfolio Highlights

On September 30, 2007, Ivy Municipal Bond Fund had net assets totaling $26,716,885 invested in a diversified portfolio.

Sector Weightings

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

Prerefunded ETM Bonds	$	20.91
State, County and City General Obligation Bonds	$	15.04
Education Revenue Bonds	$	10.81
Special Tax Bonds	$	7.96
Housing Revenue Bonds	$	7.40
Hospital Revenue Bonds	$	7.26
Lifecare Centers Bonds	$	6.60
Other Municipal Bonds	$	5.38
Airport Revenue Bonds	$	4.47
Transportation Revenue Bonds	$	3.97
Student Loans Bonds	$	3.81
Cash and Cash Equivalents	$	2.73
Public Power Revenue Bonds	$	2.03
Sales Revenue Bonds	$	1.63

Quality Weightings

On September 30, 2007, the breakdown of municipal bonds (by ratings) held by the Fund, including cash and cash equivalents, was as follows:

AAA	51.31	%
AA	12.18	%
A	8.07	%
BBB	17.07	%
BB	6.82	%
B	1.00	%
Below B	0.82	%
Cash and Cash Equivalents	2.73	%

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

The Investments of Ivy Municipal Bond Fund
September 30, 2007                                                                                                          (Unaudited)
MUNICIPAL BONDS	Principal Amount in Thousands			Value
Arizona - 1.29%
City of Bullhead City, Arizona, Bullhead Parkway       Improvement District, Improvement Bonds,
6.1%, 1-1-13	$	220	$	220,834
Arizona Health Facilities Authority, Hospital Revenue       Bonds (Phoenix Children's Hospital), Series 2007C,
4.84%, 2-1-42 (A)		125		122,899
				343,733
California - 13.54%
Golden State Tobacco Securitization Corporation:       Enhanced Tobacco Settlement Asset-Backed Bonds,       Series 2003B,
5.0%, 6-1-43	1,000			1,068,960
Tobacco Settlement Asset-Backed Bonds,       Series 2003A-1 (Fixed Rate),
6.75%, 6-1-39		200		231,550
San Mateo County Community College District (County of       San Mateo, California), 2002 General Obligation Bonds       (Election of 2001), Series A (Current Interest Bonds),
5.375%, 9-1-15		500		541,480
State of California, Various Purpose General Obligation Bonds,
5.0%, 2-1-22		495		513,157
California Statewide Communities Development Authority,       Insured Revenue Bonds (Henry Mayo Newhall Memorial       Hospital), Series 2007A,
5.0%, 10-1-37		500		502,345
Trustees of the California State University Systemwide       Revenue Bonds, Series 2002A,
5.5%, 11-1-15		250		272,097
Moreno Valley Unified School District, General       Obligation Bonds, 2004 Election, Series A (Riverside       County, California),
5.25%, 8-1-22		240		264,382
Riverside Community College District, Riverside County,       California, Election of 2004, General Obligation Bonds,       Series 2004A,
5.5%, 8-1-29		200		223,324
				3,617,295
Florida - 1.00%
City of Jacksonville, Florida, Better Jacksonville       Sales Tax Revenue Bonds, Series 2003,
5.25%, 10-1-19		250		267,060
Georgia - 0.84%
Hospital Authority of Cobb County (Georgia),       Revenue Anticipation Refunding and       Improvement Certificates, Series 2003,
5.25%, 4-1-20		210		225,004
Hawaii - 3.85%
City and County of Honolulu, Hawaii, General       Obligation Refunding Bonds, 1990 Series A,
7.35%, 7-1-08	1,000			1,027,670
Illinois - 8.22%
Village of Bedford Park, Cook County, Illinois, Water       Revenue Bonds, Series 2000A,
6.0%, 12-15-12		955		1,017,295
Bloomington-Normal Airport Authority of McLean County,       Illinois, Central Illinois Regional Airport, Passenger       Facility Charge Revenue Bonds, Series 2001,
6.05%, 12-15-19		645		663,428
City of Chicago, General Obligation Bonds,       Projectand Refunding, Series 2004A,
5.25%, 1-1-21		250		264,412
City of Belleville, Illinois, Tax Increment Refunding Revenue       Bonds (Frank Scott Parkway Redevelopment Project),       Series 2007A,
5.7%, 5-1-36		250		250,747
				2,195,882
Indiana - 7.11%
New Albany-Floyd County School Building Corporation,       First Mortgage Bonds, Series 2002 (Floyd County, Indiana),
5.75%, 7-15-17		675		738,828
Ball State University Board of Trustees, Ball State University       Student Fee Bonds, Series K,
5.75%, 7-1-18		500		537,855
Dyer (Indiana) Redevelopment Authority, Economic       Development Lease Rental Bonds, Series 1999,
6.5%, 1-15-24	300			318,336
East Chicago Elementary School Building Corporation       (Lake County, Indiana), First Mortgage Bonds,       Series 1993A,
5.5%, 1-15-16		305		305,271
				1,900,290
Kansas - 3.36%
Sedgwick County, Kansas and Shawnee County, Kansas,       Single Family Mortgage Revenue Bonds (Mortgage-Backed       Securities Program):       2002 Series A-5,
5.55%, 12-1-33		500		523,885
2003 Series A-2,
5.65%, 6-1-35		205		211,197
2001 Series A-1 (AMT),
6.3%, 12-1-32		160		162,840
				897,922
Louisiana - 3.77%
State of Louisiana, Gasoline and Fuels Tax Revenue Bonds:       2002 Series A,
5.25%, 6-1-13		500		533,095
2005 Series A,
5.0%, 5-1-26		200		207,786
Louisiana Local Government Environmental Facilities       and Community Development Authority, Mortgage       Revenue Bonds, Series 2004A (GNMA       Collateralized - Cypress Apartments Project),
5.5%, 4-20-38		250		265,218
				1,006,099
Maryland - 1.98%
Maryland Transportation Authority, Airport Parking Revenue       Bonds, Series 2002B, Baltimore/Washington International       Airport Projects (Qualified Airport Bonds - AMT),
5.375%, 3-1-15		500		530,270
Massachusetts - 1.75%
Massachusetts Development Finance Authority,       Revenue Bonds (Linden Ponds, Inc. Facility),       Series 2007 A (Tax-Exempt),
5.75%, 11-15-42	250			248,488
Massachusetts Bay Transportation Authority,       Assessment Bonds, 2004 Series A,
5.25%, 7-1-20		200		218,842
				467,330
Michigan - 0.88%
City of Detroit, Michigan, General Obligation Bonds       (Unlimited Tax), Series 2004-A(1),
5.25%, 4-1-23		200		209,974
Garden City Hospital Finance Authority, Hospital Revenue       and Refunding Bonds (Garden City Hospital Obligated       Group), Series 1998A:
5.625%, 9-1-10		15		15,425
5.625%, 9-1-10		10		10,186
				235,585
Minnesota - 3.43%
City of Perham, Minnesota, General Obligation       Disposal System Revenue Bonds, Series 2001,
6.0%, 5-1-22		500		515,180
City of Victoria, Minnesota, Private School Facility       Revenue Bonds (Holy Family Catholic High       School Project), Series 1999A,
5.6%, 9-1-19		400		400,764
				915,944
Missouri - 8.30%
The Industrial Development Authority of the County of       St. Louis, Missouri, Senior Living Facilities       Revenue Bonds (Friendship Village of West County),       Series 2007A,
5.5%, 9-1-28		500		507,605
City of Raytown, Missouri, Annual Appropriation-Supported       Tax Increment and Sales Tax Revenue Bonds       (Raytown Live Redevelopment Plan-Redevelopment       Project Area 1), Series 2007,
5.125%, 12-1-31		500		507,005
City of Kearney, Missouri, General Obligation Bonds,       Series 2001,
5.5%, 3-1-16		350		369,313
City of Belton, Missouri, Tax Increment Revenue Bonds       (Belton Town Centre Project), Series 2004,
6.25%, 3-1-24		200		206,910
The Industrial Development Authority of the City       of Kansas City, Missouri, Revenue Bonds,       Series 2004 (Plaza Library Project),
5.9%, 3-1-24		200		201,524
Missouri Housing Development Commission, Single Family       Mortgage Revenue Bonds (Homeownership Loan       Program), 2005 Series D (AMT),
6.0%, 3-1-36		180		191,932
Broadway-Fairview Transportation Development       District (Columbia, Missouri), Transportation       Sales Tax Revenue Bonds, Series 2006A,
6.125%, 12-1-36		175		167,991
Missouri Development Finance Board, Infrastructure       Facilities Revenue Bonds (City of Branson, Missouri)       (Branson Landing Project), Series 2004A,
5.25%, 12-1-19		65		66,609
				2,218,889
Nebraska - 1.14%
Nebraska Higher Education Loan Program, Inc., Senior       Subordinate Bonds, 1993-2, Series A-5A,
6.2%, 6-1-13		300		303,891
Nevada - 3.81%
Nye County School District, Nevada, General Obligation       (Limited Tax) School Building Bonds (PSF Guaranteed),       Series 2007,
6.5%, 5-1-08	1,000			1,017,380
New Jersey - 2.00%
New Jersey Economic Development Authority,       School Facilities Construction Bonds:       2004 Series I,
5.25%, 9-1-24		250		273,753
2005 Series O,
5.125%, 3-1-30		250		260,225
				533,978
New Mexico - 0.40%
New Mexico Mortgage Finance Authority, Single Family       Mortgage Program Class I Bonds,       2006 Series D (AMT),
6.0%, 1-1-37	$100			107,592
New York - 8.11%
The Port Authority of New York and New Jersey, Consolidated       Bonds, One Hundred Twenty-Seventh Series,
5.5%, 12-15-14		500		540,205
The City of New York, General Obligation Bonds,       Fiscal 2003 Series A Current Interest Bonds,
5.5%, 8-1-10		500		525,435
New York State Thruway Authority, State Personal       Income Tax Revenue Bonds (Transportation),       Series 2002A,
5.25%, 3-15-10		500		520,600
Suffolk County Industrial Development Agency       (New York), Civic Facility Revenue Bonds:       Series 1999B (The Southampton Hospital       Association Civic Facility),
7.625%, 1-1-30		185		194,559
Series 1999A (The Southampton Hospital       Association Civic Facility),
7.25%, 1-1-20		115		119,361
Dormitory Authority of the State of New York,       Third General Resolution Revenue Bonds       (State University Educational Facilities Issue),       Series 2002B,
5.25%, 11-15-23		250		265,970
				2,166,130
Ohio - 0.59%
Hamilton County, Ohio, Sewer System Improvement       Revenue Bonds, 2005 Series B (The Metropolitan       Sewer District of Greater Cincinnati),
5.0%, 12-1-30		150		156,420
Oklahoma - 1.75%
Tulsa Public Facilities Authority (Oklahoma), Assembly       Center Lease Payment Revenue Bonds,       Refunding Series 1985,
6.6%, 7-1-14	335			366,969
Trustees of the Tulsa Municipal Airport Trust, Revenue       Bonds, Refunding Series 2001B,
5.65%, 12-1-35		100		99,991
				466,960
Pennsylvania - 3.22%
The School District of Philadelphia, Pennsylvania,       General Obligation Bonds, Series A of 2002,       Prerefunded 2-1-12,
5.5%, 2-1-18		500		538,145
Schuylkill County Industrial Development Authority,       Variable Rate Demand Revenue Bonds (Pine Grove       Landfill, Inc. Project), 1995 Series,
5.1%, 10-1-19		320		323,619
				861,764
Puerto Rico - 0.98%
Government Development Bank for Puerto Rico,       Senior Notes, 2006 Series B,
5.0%, 12-1-08		200		202,622
Commonwealth of Puerto Rico, Public Improvement Refunding       Bonds (General Obligation Bonds), Series 2003 C,
5.0%, 7-1-18		60		60,608
				263,230
Rhode Island - 1.73%
Rhode Island Health and Educational Building Corporation,       Hospital Financing Revenue Bonds, St. Joseph Health       Services of Rhode Island Issue, Series 1999,
5.4%, 10-1-09		455		461,516
Tennessee - 1.13%
The Health, Educational and Housing Facilities Board of the       County of Sullivan, Tennessee, Hospital Revenue Bonds       (Wellmont Health System Project), Series 2006C,
5.25%, 9-1-26		300		302,535
Texas - 7.14%
Tarrant County Cultural Education Facilities Finance       Corporation, Retirement Facility Revenue Bonds:       Northwest Senior Housing Corporation - Edgemere Project,       Series 2006A,
6.0%, 11-15-36	500			511,585
Buckingham Senior Living Community, Inc. Project,       Series 2007,
5.625%, 11-15-27		500		496,690
North Central Texas Health Facilities Development       Corporation, Retirement Facility Revenue Bonds       (Northwest Senior Housing Corporation - Edgemere Project),       Series 1999A, Fixed Rate Bonds:
7.25%, 11-15-19		235		257,031
7.5%, 11-15-29		140		153,832
Pflugerville Independent School District (Travis County, Texas),       Unlimited Tax School Building Bonds, Series 2001,
5.5%, 8-15-19		250		267,458
Dallas-Fort Worth International Airport Facility Improvement       Corporation, American Airlines, Inc., Revenue Refunding       Bonds, Series 2000C,
6.15%, 5-1-29		220		220,161
				1,906,757
Vermont - 0.79%
Vermont Housing Finance Agency, Single Family       Housing Bonds, Series 27 (AMT),
5.5%, 11-1-37		200		211,232
Virginia - 1.99%
City of Chesapeake, Virginia, General Obligation Public       Improvement and Refunding Bonds, Series of 2001,
5.5%, 12-1-17		500		533,000
Washington - 2.03%
Energy Northwest, Project No. 1 Refunding Electric       Revenue Bonds, Series 2002-A,
5.75%, 7-1-16	500			542,385
Wyoming - 1.14%
Housing Authority of the City of Cheyenne, Housing       Revenue Bonds (Foxcrest II Project), Series 2004,
5.75%, 6-1-34		300		304,611
TOTAL MUNICIPAL BONDS - 97.27%			$	25,988,354
(Cost: $25,489,648)
SHORT-TERM SECURITIES - 1.22%
Forest and Paper Products
Sonoco Products Co.,
5.6%, 10-1-07		326		326,000
(Cost: $326,000)
TOTAL INVESTMENT SECURITIES - 98.49%			$	26,314,354
(Cost: $25,815,648)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.51%				402,531
NET ASSETS - 100.00%			$	26,716,885

Notes to Schedule of Investments

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

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

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

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

ASSETS
Investment securities - at value (cost - $25,816) (Notes 1 and 3)	$	26,314
Receivables:
Interest		352
Investment securities sold		101
Fund shares sold		89
Prepaid and other assets		25
Total assets		26,881
LIABILITIES
Payable for investment securities purchased		100
Payable to Fund shareholders		29
Dividends payable		7
Due to Custodian		6
Accrued shareholder servicing (Note 2)		5
Accrued accounting services fee (Note 2)		2
Accrued distribution and service fees (Note 2)		1
Accrued management fee (Note 2)		1
Other		13
Total liabilities		164
Total net assets	$	26,717
NET ASSETS
$0.01 par value capital stock:
Capital stock	$	24
Additional paid-in capital		26,788
Accumulated undistributed income (loss):
Accumulated undistributed net investment income		11
Accumulated undistributed net realized loss                   on investment transactions		(605	)
Net unrealized appreciation in value of investments		499
Net assets applicable to outstanding units of capital	$	26,717
Net asset value per share (net assets divided by shares outstanding):
Class A	$11.00
Class B	$11.00
Class C	$11.00
Class Y	$11.00
Capital shares outstanding:
Class A		1,124
Class B		115
Class C		1,188
Class Y		2
Capital shares authorized	200,000

See Notes to Financial Statements.

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

INVESTMENT INCOME
Income (Note 1B):
Interest and amortization	$	633
Expenses (Note 2):
Investment management fee		67
Distribution fee:
Class B		5
Class C		53
Class Y		––	*
Service fee:
Class A		13
Class B		1
Class C		18
Registration fees		23
Shareholder servicing:
Class A		7
Class B		1
Class C		14
Class Y		––	*
Accounting services fee		14
Audit fees		11
Custodian fees		2
Other		12
Total		241
Less voluntary waiver of investment management fee (Note 2)		(13	)
Total expenses		228
Net investment income		405
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS (NOTES 1 AND 3)
Realized net loss on investments		(57	)
Unrealized depreciation in value of investments during the period	(209		)
Net loss on investments	(266		)
Net increase in net assets resulting from operations	$	139

*Not shown due to rounding.

See Notes to Financial Statements.

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

	For the six months ended September 30, 2007				For the fiscal year ended March 31, 2007
INCREASE IN NET ASSETS
Operations:
Net investment income		$	405			$	771
Realized net gain (loss) on investments			(57	)			21
Unrealized appreciation (depreciation)			(209	)			154
Net increase in net assets resulting                        from operations			139				946
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(186	)			(272	)
Class B			(17	)			(41	)
Class C			(199	)			(457	)
Class Y			(––	)*			(2	)
Realized gains on investment transactions:
Class A			(––	)			(––	)
Class B			(––	)			(––	)
Class C			(––	)			(––	)
Class Y			(––	)			(––	)
			(402	)			(772	)
Capital share transactions (Note 5)			1,947				1,797
Total increase			1,684				1,971
NET ASSETS
Beginning of period			25,033				23,062
End of period		$	26,717			$	25,033
Undistributed net investment income		$	11			$	8

*Not shown due to rounding.

(1)See "Financial Highlights" on pages 179 - 182.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	11.12		$	11.04		$	11.13		$	11.31		$	11.10		$	10.61
Income (loss) from investment       operations:
Net investment income			0.20	(1)		0.41	(1)		0.42			0.38			0.37			0.42
Net realized and unrealized             gain (loss) on investments			(0.12	)(1)		0.08	(1)		(0.09	)		(0.17	)		0.21			0.49
Total from investment operations			0.08			0.49			0.33			0.21			0.58			0.91
Less distributions from:
Net investment income			(0.20	)		(0.41	)		(0.42	)		(0.39	)		(0.37	)		(0.42	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.20	)		(0.41	)		(0.42	)		(0.39	)		(0.37	)		(0.42	)
Net asset value, end of period		$	11.00		$	11.12		$	11.04		$	11.13		$	11.31		$	11.10
Total return(2)			0.74	%		4.51	%		3.00	%		1.89	%		5.36	%		8.71	%
Net assets, end of period       (in millions)		$13			$9			$6			$5			$4			$3
Ratio of expenses to average       net assets including       voluntary expense waiver			1.29	%(3)		1.11	%		0.90	%		1.13	%		1.25	%		1.15	%
Ratio of net investment income       to average net assets       including voluntary       expense waiver			3.64	%(3)		3.67	%		3.77	%		3.42	%		3.35	%		3.79	%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			1.39	%(3)		1.35	%		1.33	%		1.39	%		1.25	%(4)		1.15	%(4)
Ratio of net investment       income to average net       assets excluding voluntary       expense waiver			3.54	%(3)		3.43	%		3.34	%		3.16	%		3.35	%(4)		3.79	%(4)
Portfolio turnover rate			47	%		26	%		20	%		17	%		11	%		40	%

(1)Based on average weekly shares outstanding.

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

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	11.12		$	11.04		$	11.13		$	11.31		$	11.10		$	10.61
Income (loss) from       investment operations:
Net investment income			0.16			0.32			0.34			0.30			0.28			0.33
Net realized and unrealized             gain (loss) on investments			(0.12	)		0.08			(0.09	)		(0.18	)		0.21			0.49
Total from investment operations			0.04			0.40			0.25			0.12			0.49			0.82
Less distributions from:
Net investment income			(0.16	)		(0.32	)		(0.34	)		(0.30	)		(0.28	)		(0.33	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.16	)		(0.32	)		(0.34	)		(0.30	)		(0.28	)		(0.33	)
Net asset value, end of period		$	11.00		$	11.12		$	11.04		$	11.13		$	11.31		$	11.10
Total return			0.34	%		3.70	%		2.20	%		1.09	%		4.50	%		7.81	%
Net assets, end of period       (in millions)		$1			$1			$1			$1			$1			$1
Ratio of expenses to average       net assets including       voluntary expense waiver			2.08	%(1)		1.85	%		1.70	%		1.90	%		2.06	%		1.96	%
Ratio of net investment income       to average net assets       including voluntary       expense waiver			2.86	%(1)		2.92	%		2.96	%		2.65	%		2.54	%		2.98	%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			2.18	%(1)		2.09	%		2.13	%		2.16	%		2.06	%(2)		1.96	%(2)
Ratio of net investment income       to average net assets       excluding voluntary       expense waiver			2.76	%(1)		2.68	%		2.53	%		2.39	%		2.54	%(2)		2.98	%(2)
Portfolio turnover rate			47	%		26	%		20	%		17	%		11	%		40	%

(1)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	11.12		$	11.04		$	11.13		$	11.31		$	11.10		$	10.61
Income (loss) from       investment operations:
Net investment income			0.16			0.32			0.34			0.29			0.28			0.32
Net realized and unrealized             gain (loss) on investments			(0.12	)		0.08			(0.09	)		(0.17	)		0.21			0.49
Total from investment operations			0.04			0.40			0.25			0.12			0.49			0.81
Less distributions from:
Net investment income			(0.16	)		(0.32	)		(0.34	)		(0.30	)		(0.28	)		(0.32	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.16	)		(0.32	)		(0.34	)		(0.30	)		(0.28	)		(0.32	)
Net asset value, end of period		$	11.00		$	11.12		$	11.04		$	11.13		$	11.31		$	11.10
Total return			0.33	%		3.69	%		2.19	%		1.04	%		4.45	%		7.75	%
Net assets, end of period       (in millions)		$13			$15			$16			$18			$20			$25
Ratio of expenses to average       net assets including       voluntary expense waiver			2.10	%(1)		1.87	%		1.69	%		1.93	%		2.10	%		2.03	%
Ratio of net investment       income to average net       assets including voluntary       expense waiver			2.84	%(1)		2.90	%		2.97	%		2.62	%		2.50	%		2.95	%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			2.20	%(1)		2.11	%		2.12	%		2.19	%		2.10	%(2)		2.03	%(2)
Ratio of net investment income       to average net assets       excluding voluntary       expense waiver			2.74	%(1)		2.66	%		2.54	%		2.36	%		2.50	%(2)		2.95	%(2)
Portfolio turnover rate			47	%		26	%		20	%		17	%		11	%		40	%

(1)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	11.12		$	11.04		$	11.13		$	11.31		$	11.10		$	10.61
Income (loss) from       investment operations:
Net investment income			0.19	(1)		0.39	(1)		0.42			0.37			0.35			0.40
Net realized and unrealized             gain (loss) on investments			(0.12	)(1)		0.08	(1)		(0.09	)		(0.18	)		0.21			0.49
Total from investment operations			0.07			0.47			0.33			0.19			0.56			0.89
Less distributions from:
Net investment income			(0.19	)		(0.39	)		(0.42	)		(0.37	)		(0.35	)		(0.40	)
Capital gains			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.19	)		(0.39	)		(0.42	)		(0.37	)		(0.35	)		(0.40	)
Net asset value, end of period		$	11.00		$	11.12		$	11.04		$	11.13		$	11.31		$	11.10
Total return			0.67	%		4.36	%		2.98	%		1.75	%		5.13	%		8.52	%
Net assets, end of period       (in thousands)		$25			$25			$46			$44			$5			$4
Ratio of expenses to average       net assets including       voluntary expense waiver			1.44	%(2)		1.23	%		0.92	%		1.22	%		1.44	%		1.33	%
Ratio of net investment income       to average net assets       including voluntary       expense waiver			3.50	%(2)		3.55	%		3.74	%		3.13	%		3.14	%		3.64	%
Ratio of expenses to average       net assets excluding       voluntary expense waiver			1.54	%(2)		1.47	%		1.35	%		1.48	%		1.44	%(3)		1.33	%(3)
Ratio of net investment income       to average net assets       excluding voluntary       expense waiver			3.40	%(2)		3.31	%		3.31	%		2.87	%		3.14	%(3)		3.64	%(3)
Portfolio turnover rate			47	%		26	%		20	%		17	%		11	%		40	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

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

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY SCIENCE AND TECHNOLOGY FUND

Portfolio Highlights

On September 30, 2007, Ivy Science and Technology Fund had net assets totaling $533,426,376
invested in a diversified portfolio of:

70.14%	Domestic Common Stocks
17.72%	Foreign Common Stocks
12.14%	Cash and Cash Equivalents

Sector Weightings

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

Technology Stocks	$	30.51
Health Care Stocks	$	15.46
Business Equipment and Services Stocks	$	14.51
Consumer Durables Stocks	$	13.19
Cash and Cash Equivalents	$	12.14
Energy Stocks	$	5.98
Miscellaneous Stocks	$	4.27
Consumer Nondurables Stocks	$	3.94

The Investments of Ivy Science and Technology Fund
September 30, 2007                                                                                                       (Unaudited)
COMMON STOCKS		Shares			Value
Business Equipment and Services - 5.03%
Euronet Worldwide, Inc.*			435,700	$	12,966,432
Global Cash Access, Inc.*			604,900		6,405,891
Telvent GIT, S.A.			220,500		5,505,885
Veraz Networks, Inc.*			279,900		1,960,700
					26,838,908
Chemicals - Petroleum and Inorganic - 2.12%
E.I. du Pont de Nemours and Company			228,100		11,304,636
Communications Equipment - 1.23%
Marvell Technology Group Ltd.*			402,200		6,590,047
Computers - Micro - 3.61%
Apple Inc.*			76,000		11,664,860
Sun Microsystems, Inc.*	1,355,300				7,610,010
					19,274,870
Computers - Peripherals - 10.74%
ACI Worldwide, Inc.*			336,100		7,516,876
Aspen Technology, Inc.*	1,184,300				16,941,411
Intuit Inc.*			231,400		7,012,577
Lawson Software, Inc.*	1,335,400				13,360,677
Netezza Corporation*			173,400		2,169,234
Synaptics Incorporated*			215,600		10,285,198
					57,285,973
Consumer Electronics - 13.19%
Garmin Ltd.			112,800		13,466,064
NAVTEQ Corporation*			190,700		14,868,879
Nintendo Co., Ltd. (A)			10,400		5,414,356
Research In Motion Limited*			371,450		36,598,969
					70,348,268
Defense - 2.15%
ESCO Technologies Inc.*			345,900		11,497,716
Electrical Equipment - 1.07%
Power-One, Inc.*	1,116,100				5,697,691
Electronic Components - 12.78%
Cree, Inc.*			617,300		19,176,424
Flextronics International Ltd.*			212,200		2,373,457
Himax Technologies, Inc., ADR*			853,400		3,477,605
IPG Photonics Corporation*			109,700		2,161,090
Intel Corporation			307,000		7,940,555
MediaTek Incorporation (A)			456,200		8,219,568
PMC-Sierra, Inc.*	1,129,000				9,477,955
Samsung Electronics Co., Ltd. (A)			20,500		12,879,698
Syntax-Brillian Corporation*			611,900		2,462,898
					68,169,250
Food and Related - 3.94%
Archer Daniels Midland Company			439,500		14,538,660
Bunge Limited			60,400		6,489,980
					21,028,640
Health Care - Drugs - 3.20%
Affymetrix, Inc.*			262,600		6,659,536
Amgen Inc.*			91,000		5,150,600
Animal Health International, Inc.*			473,000		5,250,300
					17,060,436
Health Care - General - 2.93%
Advanced Medical Optics, Inc.*			182,300		5,576,557
Home Diagnostics, Inc.*			136,900		1,312,186
Radiation Therapy Services, Inc.*			213,500		4,435,463
Volcano Corporation*			261,480		4,298,731
					15,622,937
Hospital Supply and Management - 9.33%
Cerner Corporation*			566,400		33,865,056
HMS Holdings Corp.*			281,900		6,923,464
HealthSouth Corporation*			265,940		4,656,609
UnitedHealth Group Incorporated			89,600		4,339,328
					49,784,457
Multiple Industry - 0.86%
Pentair, Inc.			137,900		4,575,522
Petroleum - International - 5.02%
Noble Energy, Inc.			382,200		26,769,288
Petroleum - Services - 0.96%
ION Geophysical Corporation*			370,100		5,118,483
Retail - Specialty Stores - 0.22%
Conn's, Inc.*			48,300		1,152,921
Timesharing and Software - 9.48%
Alliance Data Systems Corporation*			349,500		27,065,280
Eclipsys Corporation*			344,000		8,010,040
Fidelity National Information Services, Inc.			111,300		4,938,381
Google Inc., Class A*			18,600		10,555,221
					50,568,922
TOTAL COMMON STOCKS - 87.86%				$	468,688,965
(Cost: $364,541,093)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Beverages - 0.75%
Diageo Capital plc (Diageo plc),
5.9%, 10-10-07	$	4,000	3,994,100
Capital Equipment - 0.56%
Deere (John) Capital Corporation,
5.07%, 10-19-07		2,980	2,972,446
Construction Materials - 0.56%
Black & Decker Corp.,
5.36%, 10-17-07		3,000	2,992,853
Electrical Equipment - 0.23%
W.W. Grainger, Inc.,
4.78%, 10-24-07		1,250	1,246,183
Food and Related - 1.96%
General Mills, Inc.,
5.75%, 10-26-07		5,482	5,460,110
Kellogg Co.,
5.85%, 10-9-07		5,000	4,993,500
			10,453,610
Forest and Paper Products - 1.01%
Sonoco Products Co.,
5.6%, 10-1-07		5,357	5,357,000
Health Care - Drugs - 0.56%
GlaxoSmithKline Finance plc,
5.4%, 10-5-07		3,000	2,998,200

Household - General Products - 2.08%
Clorox Co.,
5.42%, 10-9-07	7,000		6,991,569
Fortune Brands Inc.,
5.67%, 10-22-07	4,125		4,111,356
			11,102,925
Publishing - 0.56%
Gannett Co., Inc.,
5.8%, 10-5-07	3,000		2,998,067
Utilities - Electric - 0.38%
Detroit Edison Co.,
5.415%, 10-11-07	2,000		1,996,992
Utilities - Gas and Pipeline - 1.96%
Michigan Consolidated Gas Co.:
5.55%, 10-15-07	5,000		4,989,208
5.6%, 10-16-07	4,000		3,990,667
Questar Corporation,
5.45%, 10-23-07	1,500		1,495,004
			10,474,879
TOTAL SHORT-TERM SECURITIES - 10.61%		$	56,587,255
(Cost: $56,587,255)
TOTAL INVESTMENT SECURITIES - 98.47%		$	525,276,220
(Cost: $421,128,348)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.53%			8,150,156
NET ASSETS - 100.00%		$	533,426,376

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit.

*No dividends were paid during the preceding 12 months.

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

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

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

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

ASSETS
Investment securities - at value (cost - $421,128) (Notes 1 and 3)	$	525,276
Cash denominated in foreign currencies (cost - $90)		91
Receivables:
Investment securities sold		5,312
Fund shares sold		3,877
Dividends and interest		15
Prepaid and other assets		51
Total assets		534,622
LIABILITIES
Payable to Fund shareholders		626
Due to custodian		182
Accrued shareholder servicing (Note 2)		138
Payable for investment securities purchased		94
Accrued management fee (Note 2)		37
Accrued accounting services fee (Note 2)		12
Accrued distribution fee (Note 2)		12
Accrued service fee (Note 2)		8
Other		87
Total liabilities		1,196
Total net assets	$	533,426

NET ASSETS
$0.01 par value capital stock:
Capital stock	$	163
Additional paid-in capital		385,322
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(2,132	)
Accumulated undistributed net realized gain on                 investment transactions		45,923
Net unrealized appreciation in value of investments		104,150
Net assets applicable to outstanding units of capital	$	533,426
Net asset value per share (net assets divided by shares outstanding):
Class A	$33.16
Class B	$30.65
Class C	$31.24
Class E	$33.06
Class I	$34.79
Class R	$33.06
Class Y	$34.24
Capital shares outstanding:
Class A		7,467
Class B		740
Class C		4,129
Class E		20
Class I		81
Class R		23
Class Y		3,793
Capital shares authorized		350,000

See Notes to Financial Statements.

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

INVESTMENT LOSS
Income (Note 1B):
Interest and amortization	$	988
Dividends (net of foreign withholding taxes of $64)		779
Total income		1,767
Expenses (Note 2):
Investment management fee		1,926
Distribution fee:
Class B		76
Class C		442
Class E		––	*
Class R		1
Class Y		130
Shareholder servicing:
Class A		264
Class B		47
Class C		182
Class E		2
Class I		2
Class R		1
Class Y		85
Service fee:
Class A		261
Class B		25
Class C		148
Class R		1
Accounting services fee		70
Custodian fees		36
Audit fees		13
Legal fees		3
Other		127
Total expenses		3,842
Net investment loss		(2,075	)
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on securities		35,947
Realized net loss on foreign currency exchange transactions		(16	)
Realized net gain on investments		35,931
Unrealized appreciation in value of investments during the period		31,784
Net gain on investments		67,715
Net increase in net assets resulting from operations	$	65,640

See Notes to Financial Statements.

Statement of Changes in Net Assets
      IVY SCIENCE AND TECHNOLOGY FUND
      (In Thousands)                                                                                                                   (Unaudited)

	For the six months ended September 30, 2007				For the fiscal year ended March 31, 2007
INCREASE IN NET ASSETS
Operations:
Net investment loss		$	(2,075	)		$	(4,048	)
Realized net gain on investments			35,931				13,291
Unrealized appreciation			31,784				10,029
Net increase in net assets resulting                        from operations			65,640				19,272
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(––	)			(––	)
Class B			(––	)			(––	)
Class C			(––	)			(––	)
Class E			(––	)			NA
Class I			(––	)			NA
Class R			(––	)			(––	)
Class Y			(––	)			(––	)
Realized gains on investment transactions:
Class A			(––	)			(366	)
Class B			(––	)			(42	)
Class C			(––	)			(251	)
Class E			(––	)			NA
Class I			(––	)			NA
Class R			(––	)			(––	)*
Class Y			(––	)			(149	)
			(––	)			(808	)
Capital share transactions (Note 5)			77,096				19,752
Total increase			142,736				38,216
NET ASSETS
Beginning of period			390,690				352,474
End of period		$	533,426			$	390,690
Undistributed net investment loss		$	(2,132	)		$	(41	)

*Not shown due to rounding.

(1)See "Financial Highlights" on pages 192 - 198.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	28.70		$	27.08		$	21.34		$	19.55		$	14.17		$	18.19
Income (loss) from       investment operations:
Net investment loss			(0.13	)		(0.23	)		(0.30	)		(0.28	)		(0.19	)		(0.32	)
Net realized and unrealized             gain (loss) on investments			4.59			1.91			6.04			2.07			5.57			(3.70	)
Total from investment operations			4.46			1.68			5.74			1.79			5.38			(4.02	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.06	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.06	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net asset value, end of period		$	33.16		$	28.70		$	27.08		$	21.34		$	19.55		$	14.17
Total return(1)			15.54	%		6.22	%		26.90	%		9.16	%		37.97	%	-22.10		%
Net assets, end of period       (in millions)		$247			$185			$164			$55			$36			$14
Ratio of expenses to       average net assets			1.46	%(2)		1.47	%		1.51	%		1.70	%		1.80	%		1.79	%
Ratio of net investment loss       to average net assets			-0.68	%(2)		-0.88	%		-1.02	%		-1.09	%		-1.35	%		-0.92	%
Portfolio turnover rate			41	%		81	%		112	%		106	%		114	%		74	%

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

(2)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	26.66		$	25.42		$	20.24		$	18.77		$	13.77		$	17.88
Income (loss) from       investment operations:
Net investment loss			(0.19	)		(0.48	)		(0.40	)		(0.42	)		(0.39	)		(0.34	)
Net realized and unrealized             gain (loss) on investments			4.18			1.78			5.58			1.89			5.39			(3.77	)
Total from investment operations			3.99			1.30			5.18			1.47			5.00			(4.11	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.06	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.06	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net asset value, end of period		$	30.65		$	26.66		$	25.42		$	20.24		$	18.77		$	13.77
Total return		15.00		%		5.13	%	25.59		%		7.83	%	36.31		%	-22.99		%
Net assets, end of period       (in millions)		$22			$19			$18			$12			$11			$4
Ratio of expenses to       average net assets			2.44	%(1)		2.51	%		2.58	%		2.90	%		3.06	%		3.00	%
Ratio of net investment loss       to average net assets			-1.66	%(1)		-1.91	%		-2.10	%		-2.31	%		-2.60	%		-2.12	%
Portfolio turnover rate			41	%		81	%		112	%		106	%		114	%		74	%

(1)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	27.14		$	25.84		$	20.53		$	18.98		$	13.88		$	17.97
Income (loss) from       investment operations:
Net investment loss			(0.20	)		(0.49	)		(0.43	)		(0.42	)		(0.38	)		(0.25	)
Net realized and unrealized             gain (loss) on investments			4.30			1.85			5.74			1.97			5.48			(3.84	)
Total from investment operations			4.10			1.36			5.31			1.55			5.10			(4.09	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.06	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.06	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net asset value, end of period		$	31.24		$	27.14		$	25.84		$	20.53		$	18.98		$	13.88
Total return			15.06	%		5.32	%		25.86	%		8.17	%		36.74	%	-22.76		%
Net assets, end of period       (in millions)		$129			$109			$113			$88			$89			$70
Ratio of expenses to       average net assets			2.27	%(1)		2.33	%		2.38	%		2.58	%		2.66	%		2.67	%
Ratio of net investment loss       to average net assets			-1.50	%(1)		-1.74	%		-1.90	%		-2.00	%		-2.15	%		-1.77	%
Portfolio turnover rate			41	%		81	%		112	%		106	%		114	%		74	%

(1)Annualized.

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	28.70
Income (loss) from investment operations:
Net investment loss			(0.28	)(2)
Net realized and unrealized gain on investments			4.64	(2)
Total from investment operations			4.36
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	33.06
Total return(3)			14.87	%
Net assets, end of period (in millions)			$1
Ratio of expenses to average net assets			2.58	%(4)
Ratio of net investment loss to average net assets			-1.79	%(4)
Portfolio turnover rate			41	%(5)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	29.62
Income (loss) from investment operations:
Net investment loss			(0.05	)(2)
Net realized and unrealized gain on investments			5.22	(2)
Total from investment operations			5.17
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	34.79
Total return			17.10	%
Net assets, end of period (in millions)		$3
Ratio of expenses to average net assets			1.11	%(3)
Ratio of net investment loss to average net assets			-0.33	%(3)
Portfolio turnover rate			41	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

Financial Highlights
      IVY SCIENCE AND TECHNOLOGY FUND
      Class R Shares
      For a Share of Capital Stock Outstanding Throughout Each Period:                                  (Unaudited)

	For the six months ended				For the fiscal year ended				For the period from 12-29-05(1) to
	9-30-07				3-31-07				3-31-06
Net asset value, beginning of period		$	28.64			$	27.07			$	25.77
Income (loss) from investment operations:
Net investment loss			(0.18	)			(0.27	)			(0.09	)
Net realized and unrealized             gain on investments			4.60				1.90				1.39
Total from investment operations			4.42				1.63				1.30
Less distributions from:
Net investment income			(0.00	)			(0.00	)			(0.00	)
Capital gains			(0.00	)			(0.06	)			(0.00	)
Total distributions			(0.00	)			(0.06	)			(0.00	)
Net asset value, end of period		$	33.06			$	28.64			$	27.07
Total return			15.43	%			6.03	%			5.05	%
Net assets, end of period (in thousands)		$764				$429				$105
Ratio of expenses to average net assets			1.64	%(2)			1.65	%			1.68	%(2)
Ratio of net investment loss to average net assets			-0.86	%(2)			-1.08	%			-1.29	%(2)
Portfolio turnover rate			41	%			81	%			112	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the fiscal year ended March 31, 2006.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	29.62		$	27.92		$	21.96		$	20.07		$	14.51		$	18.54
Income (loss) from       investment operations:
Net investment loss			(0.16	)(1)		(0.22	)		(0.27	)		(0.18	)(1)		(0.15	)		(0.26	)
Net realized and unrealized             gain (loss) on investments			4.78	(1)		1.98			6.23			2.07	(1)		5.71			(3.77	)
Total from investment operations			4.62			1.76			5.96			1.89			5.56			(4.03	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(0.06	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(0.06	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net asset value, end of period		$	34.24		$	29.62		$	27.92		$	21.96		$	20.07		$	14.51
Total return		15.63		%		6.32	%	27.14		%		9.42	%	38.32		%	-21.74		%
Net assets, end of period       (in millions)		$130			$78			$57			$33			$9			$3
Ratio of expenses to       average net assets			1.36	%(2)		1.35	%		1.37	%		1.45	%		1.45	%		1.41	%
Ratio of net investment loss       to average net assets			-0.58	%(2)		-0.76	%		-0.88	%		-0.87	%		-1.03	%		-0.53	%
Portfolio turnover rate			41	%		81	%		112	%		106	%		114	%		74	%

(1)Based on average weekly shares outstanding.

(2)Annualized.

See Notes to Financial Statements.

SHAREHOLDER SUMMARY OF IVY SMALL CAP GROWTH FUND

Portfolio Highlights

On September 30, 2007, Ivy Small Cap Growth Fund had net assets totaling $568,753,765
invested in a diversified portfolio of:

93.12%	Domestic Common Stocks and Warrants
5.52%	Cash and Cash Equivalents
1.36%	Foreign Common Stocks

Sector Weightings

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

Business Equipment and Services Stocks	$	21.82
Technology Stocks	$	19.10
Health Care Stocks	$	16.62
Energy Stocks	$	8.49
Financial Services Stocks	$	6.06
Cash and Cash Equivalents	$	5.52
Consumer Services Stocks	$	5.29
Miscellaneous Stocks	$	4.95
Consumer Durables Stocks	$	4.58
Retail Stocks	$	4.11
Capital Goods Stocks	$	3.46

The Investments of Ivy Small Cap Growth Fund
September 30, 2007                                                                                                       (Unaudited)
COMMON STOCKS AND WARRANTS	Shares			Value
Business Equipment and Services - 13.87%
Allscripts Healthcare Solutions, Inc.*		453,000	$	12,235,530
Bucyrus International, Inc., Class A		156,300		11,396,614
Capella Education Company*		168,440		9,426,745
DealerTrack Holdings, Inc.*		235,000		9,826,525
Heartland Payment Systems, Inc.		216,100		5,553,770
Resources Connection, Inc.		510,102		11,816,513
Tetra Tech, Inc.*		334,000		7,037,380
VeriFone Holdings, Inc.*		151,300		6,707,129
Zoltek Companies, Inc.*		111,700		4,867,886
				78,868,092
Communications Equipment - 4.44%
General Cable Corporation*		208,100		13,967,672
Polycom, Inc.*		420,800		11,306,896
				25,274,568
Computers - Micro - 1.44%
Sonic Solutions*		786,500		8,214,993
Computers - Peripherals - 8.74%
ACI Worldwide, Inc.*		539,900		12,074,863
Advent Software, Inc.*		148,200		6,958,731
MICROS Systems, Inc.*		274,400		17,848,348
Stratasys, Inc.*		278,000		7,651,950
Vital Images, Inc.*		266,500		5,194,085
				49,727,977
Consumer Electronics - 2.48%
DTS, Inc.*		464,200		14,088,470
Cosmetics and Toiletries - 1.85%
Bare Escentuals, Inc.*		423,200		10,524,984
Defense - 1.57%
DRS Technologies, Inc.		161,800		8,918,416
Electrical Equipment - 1.69%
Microsemi Corporation*		345,000		9,611,700
Electronic Components - 1.08%
PMC-Sierra, Inc.*		729,100		6,120,795
Electronic Instruments - 1.83%
APW Ltd., Warrants (A)*		19		0	**
Trimble Navigation Limited*		265,900		10,416,633
				10,416,633
Finance Companies - 5.39%
Financial Federal Corporation		336,975		9,438,670
Portfolio Recovery Associates, Inc.		339,200		17,953,856
XL Capital Assurance Inc.		141,500		3,231,860
				30,624,386
Health Care - Drugs - 4.35%
Adams Respiratory Therapeutics, Inc.*		296,300		11,416,439
Martek Biosciences Corporation*		458,322		13,298,213
				24,714,652
Health Care - General - 4.84%
Kyphon Inc.*		209,900		14,691,951
Omnicell, Inc.*		248,300		7,071,584
Volcano Corporation*		352,300		5,791,812
				27,555,347
Hospital Supply and Management - 7.43%
athenahealth, Inc.*		18,500		626,317
Cerner Corporation*		153,300		9,165,807
Healthways, Inc.*		268,500		14,482,890
PSS World Medical, Inc.*		941,100		18,012,654
				42,287,668
Hotels and Gaming - 3.27%
Scientific Games Corporation, Class A*		495,200		18,609,616
Insurance - Property and Casualty - 0.67%
eHealth, Inc.*		137,500		3,799,812
Leisure Time Industry - 0.82%
THQ Inc.*		187,500		4,684,688
Metal Fabrication - 1.77%
Ladish Co., Inc.*		181,300		10,047,646
Motor Vehicle Parts - 2.10%
LKQ Corporation*		343,500		11,950,365
Petroleum - Domestic - 1.79%
Bill Barrett Corporation*		144,200		5,682,922
Continental Resources, Inc.*		248,200		4,502,348
				10,185,270
Petroleum - International - 1.25%
Newfield Exploration Company*		147,800		7,118,048
Petroleum - Services - 5.45%
Core Laboratories N.V.*		35,300		4,496,867
Dril-Quip, Inc.*		299,700		14,790,195
Oceaneering International, Inc.*		154,300		11,695,940
				30,983,002
Publishing - 1.20%
IHS Inc., Class A*		120,900		6,829,641
Railroad - 1.88%
Westinghouse Air Brake Technologies Corporation		285,700		10,702,322
Restaurants - 1.21%
P.F. Chang's China Bistro, Inc.*		232,700		6,883,266
Retail - Specialty Stores - 2.90%
Coldwater Creek Inc.*		606,800		6,586,814
Knot, Inc. (The)*		194,100		4,125,595
Tween Brands, Inc.*		176,400		5,792,976
				16,505,385
Timesharing and Software - 7.95%
Blackboard Inc.*		240,100		10,998,981
CoStar Group, Inc.*		68,100		3,636,540
Concur Technologies, Inc.*		124,700		3,926,803
F5 Networks, Inc.*		235,500		8,752,357
FactSet Research Systems, Inc.		103,225		7,076,074
Internap Network Services Corporation*		180,600		2,560,005
Ultimate Software Group, Inc. (The)*		237,100		8,248,709
				45,199,469
Utilities - Electric - 1.22%
Pike Electric Corporation*		368,700		6,916,812
TOTAL COMMON STOCKS AND WARRANTS - 94.48%			$	537,364,023
(Cost: $435,345,570)

SHORT-TERM SECURITIES	Principal Amount in Thousands
Beverages - 0.26%
Diageo Capital plc (Diageo plc),
5.9%, 10-10-07	$	1,500	1,497,788

Chemicals - Specialty - 0.52%
Air Products and Chemicals, Inc.,
5.05%, 10-1-07	$	2,983		2,983,000
Construction Materials - 0.53%
Black & Decker Corp.,
5.36%, 10-17-07		3,000		2,992,853
Food and Related - 0.97%
ConAgra Foods, Inc.,
5.23%, 10-3-07		1,500		1,499,564
General Mills, Inc.,
5.605%, 10-4-07		1,000		999,533
Kellogg Co.,
5.75%, 10-12-07		3,000		2,994,729
				5,493,826
Health Care - Drugs - 0.53%
GlaxoSmithKline Finance plc,
5.4%, 10-5-07		3,000		2,998,200
Household - General Products - 0.73%
Clorox Co.,
5.7%, 10-12-07		4,186		4,178,709
Publishing - 0.53%
Gannett Co., Inc.,
5.8%, 10-5-07		3,000		2,998,067
Retail - General Merchandise - 0.96%
Home Depot Inc.,
5.5%, 11-9-07		5,500		5,467,229
TOTAL SHORT-TERM SECURITIES - 5.03%			$	28,609,672
(Cost: $28,609,672)
TOTAL INVESTMENT SECURITIES - 99.51%			$	565,973,695
(Cost: $463,955,242)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.49%				2,780,070
NET ASSETS - 100.00%			$	568,753,765

Notes to Schedule of Investments

Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit.

*No dividends were paid during the preceding 12 months.

**Not shown due to rounding.

(A)Security valued in good faith by the Valuation Committee subject to the supervision of the Board of Directors.

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

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

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

ASSETS
Investment securities - at value (cost - $463,955) (Notes 1 and 3)	$	565,974
Receivables:
Investment securities sold		11,255
Fund shares sold		293
Prepaid and other assets		43
Total assets		577,565
LIABILITIES
Payable for investment securities purchased		7,386
Payable to Fund shareholders		1,012
Accrued shareholder servicing (Note 2)		137
Due to custodian		47
Accrued management fee (Note 2)		40
Accrued distribution fee (Note 2)		20
Accrued accounting services fee (Note 2)		14
Accrued service fee (Note 2)		8
Other		147
Total liabilities		8,811
Total net assets	$	568,754

NET ASSETS
$0.01 par value capital stock:
Capital stock	$	399
Additional paid-in capital		419,678
Accumulated undistributed income (loss):
Accumulated undistributed net investment loss		(3,047	)
Accumulated undistributed net realized gain on                  investment transactions		49,706
Net unrealized appreciation in value of investments		102,018
Net assets applicable to outstanding units of capital	$	568,754
Net asset value per share (net assets divided by shares outstanding):
Class A	$14.35
Class B	$13.17
Class C	$13.46
Class E	$14.32
Class I	$16.08
Class R	$14.32
Class Y	$15.83
Capital shares outstanding:
Class A		8,827
Class B		1,210
Class C		19,343
Class E		20
Class I		127
Class R		13
Class Y		10,320
Capital shares authorized		500,000

See Notes to Financial Statements.

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

INVESTMENT LOSS
Income (Note 1B):
Interest and amortization	$	1,238
Dividends		846
Total income		2,084
Expenses (Note 2):
Investment management fee		2,350
Distribution fee:
Class B		59
Class C		979
Class E		––	*
Class R		––	*
Class Y		198
Shareholder servicing:
Class A		215
Class B		36
Class C		314
Class E		1
Class I		2
Class R		––	*
Class Y		121
Service fee:
Class A		145
Class B		20
Class C		326
Class R		––	*
Accounting services fee		81
Audit fees		17
Custodian fees		9
Legal fees		3
Other		143
Total expenses		5,019
Net investment loss		(2,935	)
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTES 1 AND 3)
Realized net gain on investments		44,550
Unrealized appreciation in value of investments during the period		12,978
Net gain on investments		57,528
Net increase in net assets resulting from operations	$	54,593

*Not shown due to rounding.

See Notes to Financial Statements.

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

	For the six months ended September 30, 2007				For the fiscal year ended March 31, 2007
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss		$	(2,935	)		$	(6,809	)
Realized net gain on investments			44,550				42,147
Unrealized appreciation (depreciation)			12,978				(41,418	)
Net increase (decrease) in net assets                       resulting from operations			54,593				(6,080	)
Distributions to shareholders from (Note 1F):(1)
Net investment income:
Class A			(––	)			(––	)
Class B			(––	)			(––	)
Class C			(––	)			(––	)
Class E			(––	)			NA
Class I			(––	)			NA
Class R			(––	)			(––	)
Class Y			(––	)			(––	)
Realized gains on investment transactions:
Class A			(––	)			(15,243	)
Class B			(––	)			(2,343	)
Class C			(––	)			(38,368	)
Class E			(––	)			NA
Class I			(––	)			NA
Class R			(––	)			(15	)
Class Y			(––	)			(19,803	)
			(––	)			(75,772	)
Capital share transactions (Note 5)			(23,519	)			(41,869	)
Total increase (decrease)			31,074			(123,721		)
NET ASSETS
Beginning of period			537,680				661,401
End of period		$	568,754			$	537,680
Undistributed net investment loss		$	(3,047	)		$	(112	)

(1)See "Financial Highlights" on pages 209 - 215.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	12.98		$	14.87		$	12.32		$	11.36		$	8.25		$	10.59
Income (loss) from       investment operations:
Net investment loss			(0.07	)		(0.12	)(1)		(0.21	)		(0.08	)		(0.08	)		(0.23	)
Net realized and unrealized             gain (loss) on investments			1.44			0.18	(1)		3.22			1.04			3.19			(2.11	)
Total from investment operations			1.37			0.06			3.01			0.96			3.11			(2.34	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(1.95	)		(0.46	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(1.95	)		(0.46	)		(0.00	)		(0.00	)		(0.00	)
Net asset value, end of period		$	14.35		$	12.98		$	14.87		$	12.32		$	11.36		$	8.25
Total return(2)			10.56	%		0.76	%		24.70	%		8.45	%		37.70	%	-22.10		%
Net assets, end of period       (in millions)		$127			$109			$141			$72			$92			$20
Ratio of expenses to       average net assets			1.57	%(3)		1.49	%		1.50	%		1.54	%		1.48	%		1.54	%
Ratio of net investment loss       to average net assets			-0.82	%(3)		-0.86	%		-0.90	%		-1.14	%		-1.21	%		-1.22	%
Portfolio turnover rate			40	%		96	%		87	%		83	%		91	%		31	%

(1)Based on average weekly shares outstanding.

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

(3)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	11.97		$	13.99		$	11.73		$	10.91		$	8.01		$	10.40
Income (loss) from       investment operations:
Net investment loss			(0.12	)		(0.24	)		(0.23	)		(0.23	)		(0.20	)		(0.21	)
Net realized and unrealized             gain (loss) on investments			1.32			0.17			2.95			1.05			3.10			(2.18	)
Total from investment operations			1.20			(0.07	)		2.72			0.82			2.90			(2.39	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(1.95	)		(0.46	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(1.95	)		(0.46	)		(0.00	)		(0.00	)		(0.00	)
Net asset value, end of period		$	13.17		$	11.97		$	13.99		$	11.73		$	10.91		$	8.01
Total return			10.03	%		-0.15	%		23.46	%		7.52	%		36.21	%	-22.98		%
Net assets, end of period       (in millions)		$16			$16			$19			$15			$13			$7
Ratio of expenses to       average net assets			2.43	%(1)		2.45	%		2.45	%		2.52	%		2.57	%		2.64	%
Ratio of net investment loss       to average net assets			-1.67	%(1)		-1.82	%		-1.86	%		-2.11	%		-2.29	%		-2.31	%
Portfolio turnover rate			40	%		96	%		87	%		83	%		91	%		31	%

(1)Annualized.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	12.22		$	14.20		$	11.87		$	11.02		$	8.07		$	10.44
Income (loss) from       investment operations:
Net investment loss			(0.13	)		(0.23	)		(0.25	)		(0.24	)		(0.21	)		(0.16	)
Net realized and unrealized             gain (loss) on investments			1.37			0.20			3.04			1.09			3.16			(2.21	)
Total from investment operations			1.24			(0.03	)		2.79			0.85			2.95			(2.37	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(1.95	)		(0.46	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(1.95	)		(0.46	)		(0.00	)		(0.00	)		(0.00	)
Net asset value, end of period		$	13.46		$	12.22		$	14.20		$	11.87		$	11.02		$	8.07
Total return			10.15	%		0.14	%		23.78	%		7.71	%		36.56	%	-22.70		%
Net assets, end of period       (in millions)		$260			$259			$328			$308			$334			$273
Ratio of expenses to       average net assets			2.19	%(1)		2.20	%		2.20	%		2.26	%		2.31	%		2.31	%
Ratio of net investment loss       to average net assets			-1.43	%(1)		-1.57	%		-1.62	%		-1.85	%		-2.03	%		-1.98	%
Portfolio turnover rate			40	%		96	%		87	%		83	%		91	%		31	%

(1)Annualized.

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	12.98
Income from investment operations:
Net investment income			0.01	(2)
Net realized and unrealized gain on investments			1.33	(2)
Total from investment operations			1.34
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	14.32
Total return(3)			9.98	%
Net assets, end of period (in thousands)		$278
Ratio of expenses to average net assets			2.12	%(4)
Ratio of net investment loss to average net assets			-1.33	%(4)
Portfolio turnover rate			40	%(5)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

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

(4)Annualized.

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

See Notes to Financial Statements.

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

	For the period from 4-2-07(1) through
	9-30-07
Net asset value, beginning of period		$	14.31
Income from investment operations:
Net investment income			0.16	(2)
Net realized and unrealized gain on investments			1.61	(2)
Total from investment operations			1.77
Less distributions from:
Net investment income			(0.00	)
Capital gains			(0.00	)
Total distributions			(0.00	)
Net asset value, end of period		$	16.08
Total return			12.06	%
Net assets, end of period (in millions)		$2
Ratio of expenses to average net assets			1.09	%(3)
Ratio of net investment loss to average net assets			-0.33	%(3)
Portfolio turnover rate			40	%(4)

(1)Commencement of operations of the class.

(2)Based on average weekly shares outstanding.

(3)Annualized.

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

See Notes to Financial Statements.

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

	For the six months ended 9-30-07				For the fiscal year ended 3-31-07				For the period from 12-29-05(1) to 3-31-06
Net asset value, beginning of period		$	12.96			$	14.87			$	13.78
Income (loss) from investment operations:
Net investment loss			(0.10	)			(0.15	)			(0.04	)
Net realized and unrealized             gain on investments			1.46				0.19				1.13
Total from investment operations			1.36				0.04				1.09
Less distributions from:
Net investment income			(0.00	)			(0.00	)			(0.00	)
Capital gains			(0.00	)			(1.95	)			(0.00	)
Total distributions			(0.00	)			(1.95	)			(0.00	)
Net asset value, end of period		$	14.32			$	12.96			$	14.87
Total return			10.49	%			0.62	%			7.91	%
Net assets, end of period (in thousands)		$185				$114				$108
Ratio of expenses to average net assets			1.62	%(2)			1.63	%			1.67	%(2)
Ratio of net investment loss to average net assets			-0.83	%(2)			-1.01	%			-0.99	%(2)
Portfolio turnover rate			40	%			96	%			87	%(3)

(1)Commencement of operations of the class.

(2)Annualized.

(3)For the fiscal year ended March 31, 2006.

See Notes to Financial Statements.

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

	For the six months ended				For the fiscal year ended March 31,
	9-30-07				2007			2006			2005			2004			2003
Net asset value,       beginning of period		$	14.31		$	16.15		$	13.33		$	12.26		$	8.89		$	11.39
Income (loss) from       investment operations:
Net investment loss			(0.03	)		(0.11	)		(0.16	)		(0.09	)		(0.10	)		(0.11	)
Net realized and unrealized             gain (loss) on investments			1.55			0.22			3.44			1.16			3.47			(2.39	)
Total from investment operations			1.52			0.11			3.28			1.07			3.37			(2.50	)
Less distributions from:
Net investment income			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Capital gains			(0.00	)		(1.95	)		(0.46	)		(0.00	)		(0.00	)		(0.00	)
Total distributions			(0.00	)		(1.95	)		(0.46	)		(0.00	)		(0.00	)		(0.00	)
Net asset value, end of period		$	15.83		$	14.31		$	16.15		$	13.33		$	12.26		$	8.89
Total return			10.62	%		1.02	%		24.86	%		8.73	%		37.91	%	-21.95		%
Net assets, end of period       (in millions)		$164			$154			$173			$115			$124			$42
Ratio of expenses to       average net assets			1.33	%(1)		1.32	%		1.33	%		1.36	%		1.35	%		1.33	%
Ratio of net investment       loss to average net assets			-0.57	%(1)		-0.70	%		-0.74	%		-0.95	%		-1.09	%		-1.00	%
Portfolio turnover rate			40	%		96	%		87	%		83	%		91	%		31	%

(1)Annualized.

See Notes to Financial Statements.

Notes to Financial Statements
      September 30, 2007                                                                                     (Unaudited)

NOTE 1 - Significant Accounting Policies

Ivy Funds, Inc. (the Corporation) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Corporation issues 12 series of capital shares; each series represents ownership of a separate mutual fund (Fund). The assets belonging to each Fund are held separately by the custodian. The capital shares of each Fund represent a pro rata beneficial interest in the principal, net income and realized and unrealized capital gains or losses of its respective investments and other assets. The following is a summary of significant accounting policies consistently followed by the Corporation in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.

A. Security valuation - Each stock and convertible bond is valued at the latest sale price thereof on each business day of the fiscal period as reported by the principal securities exchange on which the issue is traded or, if no sale is reported for a stock, the average of the latest bid and asked prices. Bonds, other than convertible bonds, are valued using a pricing system provided by a pricing service or dealer in bonds. Convertible bonds are valued using this pricing system only on days when there is no sale reported. Stocks which are traded over-the-counter are priced using the Nasdaq Stock Market, which provides information on bid and asked prices quoted by major dealers in such stocks. Gold bullion is valued at the last settlement price for current delivery as calculated by the Commodity Exchange, Inc. as of the close of that exchange. Securities for which quotations are not readily available or are deemed not to be reliable because of significant events or circumstances identified between the closing of their principal markets and the closing of the New York Stock Exchange are valued at fair value as determined in good faith under procedures established by and under the general supervision of the Corporation's Board of Directors. Management's valuation committee makes fair value determinations for the Corporation, subject to the supervision of the Board of Directors. Short-term debt securities, purchased with less than 60 days to maturity, are valued at amortized cost, which approximates market value. Short-term debt securities denominated in foreign currencies are valued at amortized cost in that currency.

B. Security transactions and related investment income - Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Securities gains and losses are calculated on the identified cost basis. Premium and discount on the purchase of bonds are amortized for both financial and tax reporting purposes over the remaining lives of the bonds. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Corporation is informed of the ex-dividend date. Interest income is recorded on the accrual basis. See Note 3 - Investment Securities Transactions.

C. Foreign currency translations - All assets and liabilities denominated in foreign currencies are translated into United States dollars daily. Purchases and sales of investment securities and accruals of income and expenses are translated at the rate of exchange prevailing on the date of the transaction. For assets and liabilities other than investments in securities, net realized and unrealized gains and losses from foreign currency translation arise from changes in currency exchange rates. The Corporation combines fluctuations from currency exchange rates and fluctuations in market value when computing net realized and unrealized gain or loss from investments.

D. Forward foreign currency exchange contracts - A forward foreign currency exchange contract (Forward Contract) is an obligation to purchase or sell a specific currency at a future date at a fixed price. Forward Contracts are marked-to-market daily at the applicable translation rates and the resulting unrealized gains or losses are reflected in the Corporation's financial statements. Gains or losses are realized by the Corporation at the time the Forward Contract is extinguished. Contracts may be extinguished either by entry into a closing transaction or by delivery of the currency. Risks may arise from the possibility that the other party will not complete the obligations of the contract and from unanticipated movements in the value of the foreign currency relative to the United States dollar. The Corporation uses Forward Contracts to attempt to reduce the overall risk of its investments or for investment purposes.

E. Federal income taxes - It is the Corporation's policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition, the Corporation intends to pay distributions as required to avoid imposition of excise tax. Accordingly, provision has not been made for Federal income taxes. See Note 4 - Federal Income Tax Matters.

F. Dividends and distributions - Dividends and distributions to shareholders are recorded by each Fund on the business day following the applicable record date. Net investment income dividends and capital gains distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as deferral of wash sales and post-October losses, foreign currency transactions, net operating losses and expiring capital loss carryovers. At September 30, 2007, $6,932 was reclassified for Mid Cap Growth Fund between accumulated undistributed net investment loss and additional paid-in capital. Net investment income, accumulated realized capital loss on investment transactions, and net assets were not affected by this change.

G. Repurchase agreements - Repurchase agreements are collateralized by the value of the resold securities which, during the entire period of the agreement, remains at least equal to the value of the loan, including accrued interest thereon. The collateral for the repurchase agreement is held by the custodian bank.

H. New Accounting Pronouncements - In June 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 16, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management has concluded that the adoption of FIN 48 will not result in a material impact on each Fund's net assets, results of operations and financial statement disclosures. In September 2006, FASB issued Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." SFAS 157 defines  fair value for purposes of financial statement presentation, establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. The Corporation will adopt SFAS 157 during 2008 and its potential impact, if any, on each Fund's financial statements is currently being assessed by management.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

NOTE 2 - Investment Management and Payments to Affiliated Persons

Ivy Investment Management Company (IICO), a wholly owned subsidiary of Waddell & Reed Financial, Inc. (WDR), serves as the Corporation's investment manager. Prior to March 8, 2005, IICO was known as Waddell & Reed Ivy Investment Company. IICO provides advice and supervises investments, for which services it is paid a fee. Prior to June 30, 2003, Waddell & Reed Investment Management Company (WRIMCO), a wholly owned subsidiary of Waddell & Reed, Inc. (W&R), served as the investment manager. On June 30, 2003, WRIMCO assigned the investment management agreement between it and the Corporation to Waddell & Reed Ivy Investment Company, an affiliated entity. The fee is payable by each Fund at the following annual rates:

Fund	Net Asset Breakpoints	Annual Rate
Ivy Asset Strategy Fund	Up to $1 Billion	.700%
	Over $1 Billion up to $2 Billion	.650%
	Over $2 Billion up to $3 Billion	.600%
	Over $3 Billion	.550%
Ivy Capital Appreciation Fund	Up to $1 Billion	.650%
	Over $1 Billion up to $2 Billion	.600%
	Over $2 Billion up to $3 Billion	.550%
	Over $3 Billion	.500%
Ivy Core Equity Fund	Up to $1 Billion	.700%
	Over $1 Billion up to $2 Billion	.650%
	Over $2 Billion up to $3 Billion	.600%
	Over $3 Billion	.550%
Ivy Energy Fund	Up to $1 Billion	.850%
	Over $1 Billion up to $2 Billion	.830%
	Over $2 Billion up to $3 Billion	.800%
	Over $3 Billion	.760%
Ivy High Income Fund	Up to $500 Million	.625%
	Over $500 Million up to $1 Billion	.600%
	Over $1 Billion up to $1.5 Billion	.550%
	Over $1.5 Billion	.500%
Ivy Large Cap Growth Fund	Up to $1 Billion	.700%
	Over $1 Billion up to $2 Billion	.650%
	Over $2 Billion up to $3 Billion	.600%
	Over $3 Billion	.550%
Ivy Limited-Term Bond Fund	Up to $500 Million	.500%
	Over $500 Million up to $1 Billion	.450%
	Over $1 Billion up to $1.5 Billion	.400%
	Over $1.5 Billion	.350%
Ivy Mid Cap Growth Fund	Up to $1 Billion	.850%
	Over $1 Billion up to $2 Billion	.830%
	Over $2 Billion up to $3 Billion	.800%
	Over $3 Billion	.760%
Ivy Money Market Fund	All levels	.400%
Ivy Municipal Bond Fund	Up to $500 Million	.525%
	Over $500 Million up to $1 Billion	.500%
	Over $1 Billion up to $1.5 Billion	.450%
	Over $1.5 Billion	.400%
Ivy Science and Technology Fund	Up to $1Billion	.850%
	Over $1 Billion up to $2 Billion	.830%
	Over $2 Billion up to $3 Billion	.800%
	Over $3 Billion	.760%
Ivy Small Cap Growth Fund	Up to $1 Billion	.850%
	Over $1 Billion up to $2 Billion	.830%
	Over $2 Billion up to $3 Billion	.800%
	Over $3 Billion	.760%

Effective August 30, 2007, the fee is as follows:

Ivy Core Equity Fund	Up to $1 Billion	.700%
	Over $1 Billion up to $2 Billion	.650%
	Over $2 Billion up to $3 Billion	.600%
	Over $3 Billion up to $5 Billion	.550%
	Over $5 Billion	.525%

The fee is accrued and paid daily. However, IICO has voluntarily agreed to waive a Fund's management fee on any day that the Fund's net assets are less than $25 million, subject to IICO's right to change or modify this waiver. During the six-month period ended September 30, 2007, IICO voluntarily waived its fee (in thousands) as shown in the following table:

Ivy Energy Fund	$	60
Ivy Municipal Bond Fund		13

The Corporation has an Accounting Services Agreement with Waddell & Reed Services Company (WRSCO), an indirect subsidiary of WDR. Under the agreement, WRSCO acts as the agent in providing bookkeeping and accounting services and assistance to the Corporation, including maintenance of Fund records, pricing of Fund shares, preparation of prospectuses for existing shareholders, preparation of proxy statements and certain shareholder reports. For these services, each of the Funds pays WRSCO a monthly fee of one-twelfth of the annual fee shown in the following table:

Accounting Services Fee
Average Net Asset Level (in millions)						Annual Fee Rate for Each Level
From	$	0	to	$	10		$	0
From	$	10	to	$	25		$	11,500
From	$	25	to	$	50		$	23,100
From	$	50	to	$	100		$	35,500
From	$	100	to	$	200		$	48,400
From	$	200	to	$	350		$	63,200
From	$	350	to	$	550		$	82,500
From	$	550	to	$	750		$	96,300
From	$	750	to	$	1,000		$	121,600
	$	1,000 and Over					$	148,500

In addition, for each class of shares in excess of one, each Fund pays WRSCO a monthly per-class fee equal to 2.5% of the monthly accounting services base fee.

Each Fund also pays monthly a fee at the annual rate of 0.01% or one basis point for the first $1 billion of net assets with no fee charged for net assets in excess of $1 billion. This fee may be voluntarily waived until a Fund's net assets are at least $10 million.

Under the Shareholder Servicing Agreement between the Corporation and WRSCO, with respect to Class A, Class B, Class C, and Class E shares, for each shareholder account that was in existence at any time during the prior month: Ivy Asset Strategy Fund pays a monthly fee of $1.5792; Ivy High Income Fund, Ivy Limited-Term Bond Fund and Ivy Municipal Bond Fund each pay a monthly fee of $1.6958; and Ivy Capital Appreciation Fund, Ivy Core Equity Fund, Ivy Energy Fund, Ivy Large Cap Growth Fund, Ivy Mid Cap Growth Fund, Ivy Science and Technology Fund and Ivy Small Cap Growth Fund each pay a monthly fee of $1.5042. Ivy Money Market Fund pays a monthly fee of $1.75 for each shareholder account that was in existence at any time during the prior month plus, for Class A shareholder accounts, $0.75 for each shareholder check processed in the prior month. Ivy Limited-Term Bond Fund Class A, which also has check writing privileges, pays $0.75 for each shareholder check processed in the prior month. For Class R shares, each Fund pays a monthly fee equal to one-twelfth of 0.20 of 1% of the average daily net assets of the class for the preceding month. For Class I and Class Y shares, each Fund pays a monthly fee equal to one-twelfth of 0.15 of 1% of the average daily net assets of the class for the preceding month. Effective September 1, 2006, the Shareholder Servicing Agreement with respect to Class A, Class B, Class C and Class E shares was revised so that each Fund pays WRSCO an annual fee (payable monthly) for each account of the Fund that is non-networked and is as shown above; however, WRSCO has agreed to reduce those fees if the number of total shareholders accounts within the Complex (Waddell & Reed Advisors Funds, Waddell & Reed InvestEd Portfolios, Inc., Ivy Funds and Ivy Funds, Inc.) reaches certain levels. For certain networked accounts (that is, those accounts whose Fund shares are purchased through certain financial intermediaries), WRSCO has agreed to reduce its per account fees charged to the Funds to $0.50 per month per shareholder account. Additional fees may be paid by the Funds to those intermediaries. Each Fund also reimburses WRSCO for certain out-of-pocket costs for all classes.

As principal underwriter for the Corporation's shares, Ivy Funds Distributor, Inc. (IFDI) receives sales commissions (which are not an expense of the Corporation) for Class A and Class E shares. A contingent deferred sales charge (CDSC) may be assessed against a shareholder's redemption amount of Class B, Class C or certain Class A and Class E shares and is paid to IFDI. During the six-month period ended September 30, 2007, IFDI received the following amounts in sales commissions and CDSC:

	Sales Commissions			CDSC
				Class A		Class B		Class C		Class E
Ivy Asset Strategy Fund		$	1,872,862	$	4,448	$	79,263	$	97,438	$	––
Ivy Capital      Appreciation Fund			323,472		10,000		4,162		1,689		––
Ivy Core Equity Fund			87,240		––		4,633		1,678		––
Ivy Energy Fund			60,737		––		1,111		74		––
Ivy High Income Fund			249,166		212		4,170		883		––
Ivy Large Cap      Growth Fund			551,597		––		5,595		786		––
Ivy Limited-Term      Bond Fund			46,238		99		1,896		368		––
Ivy Mid Cap Growth Fund			137,049		10		3,382		139		––
Ivy Money Market Fund			––		––		8,624		1,449		––
Ivy Municipal Bond Fund			12,997		1,400		378		67		––
Ivy Science and      Technology Fund			212,089		16		6,584		3,745		––
Ivy Small Cap Growth Fund			161,742		100		6,118		2,017		––

With respect to Class A, Class B, Class C and Class E shares, IFDI pays sales commissions and all expenses in connection with the sale of the Corporation's shares, except for registration fees and related expenses. During the six-month period ended September 30, 2007, the following amounts were paid:

Ivy Asset Strategy Fund	$	10,346,458
Ivy Capital Appreciation Fund		821,595
Ivy Core Equity Fund		105,194
Ivy Energy Fund		67,535
Ivy High Income Fund		258,532
Ivy Large Cap Growth Fund		643,420
Ivy Limited-Term Bond Fund		49,960
Ivy Mid Cap Growth Fund		145,774
Ivy Money Market Fund		––
Ivy Municipal Bond Fund		13,953
Ivy Science and Technology Fund		365,287
Ivy Small Cap Growth Fund		185,730

Under a Distribution and Service Plan for Class A shares adopted by the Corporation pursuant to Rule 12b-1 under the Investment Company Act of 1940, each Fund may pay a distribution and/or service fee to IFDI in an amount not to exceed 0.25% of the Fund's average annual net assets. The fee is to be paid to compensate IFDI for amounts it expends in connection with the distribution of the Class A shares and/or provision of personal services to Fund shareholders and/or maintenance of shareholder accounts.Under the Distribution and Service Plan adopted by the Corporation for Class B shares and Class C shares, respectively, each Fund may pay IFDI a service fee not to exceed 0.25% and a distribution fee not to exceed 0.75% of a Fund's average annual net assets attributable to that class to compensate IFDI for its services in connection with the distribution of shares of that class and/or provision of personal services to Class B or Class C shareholders and/or maintenance of shareholder accounts of that class. Under the Class E Plan, each Fund pays IFDI a fee not to exceed 0.25% of the Fund's average annual net assets attributable to Class E shares, paid daily to compensate IFDI for its costs and expenses in connection with, either directly or through others, the distribution of the Class E shares, the provision of personal services to Class E shareholders and/or maintenance of Class E shareholder accounts. Under the Class Y Plan, each Fund may pay IFDI a fee of up to 0.25%, on an annual basis, of the average daily net assets of the Fund's Class Y shares to compensate IFDI for, either directly or through third parties, distributing the Class Y shares of that Fund, providing personal services to Class Y shareholders and/or maintaining Class Y shareholder accounts. Under the Class R Plan, each Fund may pay IFDI a fee of up to 0.50%, on an annual basis, of the average daily net assets of the Fund's Class R shares to compensate IFDI for, either directly or through third parties, distributing the Class R shares of that Fund, providing personal services to Class R shareholders and/or maintaining Class R shareholder accounts.

IFDI and WRSCO have voluntarily agreed to waive sufficient expenses to Class A of Ivy Money Market Fund in order to maintain the yield at the level of that of Waddell & Reed Advisors Cash Management, Inc. Class A. As of September 30, 2007, no expenses were waived for Ivy Money Market Fund Class A.

This reimbursement serves to reduce shareholder servicing fees.

Effective June 1, 2007 through July 31, 2008, IFDI and WRSCO have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to cap the expenses for Ivy Large Cap Growth Fund as follows:

Fund and Class	June 1, 2007 to July 31, 2008 Expense Limitation
Ivy Large Cap Growth Fund, Class A		1.15%
Ivy Large Cap Growth Fund, Class E		1.15%
Ivy Large Cap Growth Fund, Class Y		1.06%

During the six-month period ended September 30, 2007, the amount of fees (in thousands) reimbursed under this agreement is as follows:

Ivy Large Cap Growth Fund
Class A	$	199
Class E		-*
Class Y		51
*Not shown due to rounding.

For the period from July 1, 2005 through July 31, 2006, IICO also voluntarily agreed to waive sufficient management fees for Ivy Capital Appreciation Fund to insure that the Class A expense ratio for that Fund did not exceed 1.35%. In addition, for the period from August 1, 2006 through July 31, 2008, IFDI and WRSCO have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to cap the expenses for Ivy Capital Appreciation Class A and Class E shares at 1.35%. For the six-month period ended September 30, 2007, no management fee was waived. Additionally, $1 (in thousands) Class E 12b-1 expenses have been waived.

In addition, IFDI and WRSCO have voluntarily agreed to waive sufficient expenses for Class A, Class C and Class Y of Ivy Mid Cap Growth Fund in order to ensure that the total annual Fund operating expenses do not exceed the following levels:

Fund and Class	Expense Limitation (as a percentage of average net assets of each Class)
Ivy Mid Cap Growth Fund, Class A		1.65%
Ivy Mid Cap Growth Fund, Class C		2.35%
Ivy Mid Cap Growth Fund, Class Y		1.25%

During the six-month period ended September 30, 2007, the amount of fees (in thousands) reimbursed under this agreement is as follows:

Ivy Mid Cap Growth Fund
Class C	$	1
Class Y		9

This reimbursement serves to reduce distribution and service fees.

During the six-month period ended September 30, 2007, the Corporation paid Directors' regular compensation of $112,002, which is included in other expenses.

NOTE 3 - Investment Securities Transactions

Investment securities transactions for the six-month period ended September 30, 2007 are summarized as follows:

	Ivy Asset Strategy Fund		Ivy Capital Appreciation Fund		Ivy Core Equity Fund
Purchases of investment       securities, excluding       short-term and       U.S. government securities	$	1,754,769,566	$	337,285,208	$	119,217,643
Purchases of bullion		182,930,834		––		––
Purchases of U.S. government       securities		337,402,305		––		––
Purchases of short-term       securities		11,001,571,668		1,013,005,274		472,814,245
Purchases of options		924,367		––		––
Proceeds from maturities and       sales of investment securities,       excluding short-term and       U.S. government securities		1,081,779,560		69,049,147		115,704,843
Proceeds from sales of bullion		60,818,024		––		––
Proceeds from maturities and       sales of U.S. government       securities		54,195,819		––		––
Proceeds from maturities and       sales of short-term securities		10,688,226,872		949,522,199		472,039,053
Proceeds from options		298,442		––		––

	Ivy Energy Fund		Ivy High Income Fund		Ivy Large Cap Growth Fund
Purchases of investment securities,       excluding short-term and       U.S. government securities	$	10,100,792	$	77,921,981	$	139,407,279
Purchases of U.S. government securities		––		––		––
Purchases of short-term securities		142,226,117		592,391,104		609,483,672
Proceeds from maturities and sales       of investment securities,       excluding short-term and       U.S. government securities		1,233,752		56,636,821		95,643,332
Proceeds from maturities and sales       of U.S. government securities		––		––		––
Proceeds from maturities and       sales of short-term securities		141,029,908		587,164,593		574,211,264

	Ivy Limited- Term Bond Fund		Ivy Mid Cap Growth Fund		Ivy Municipal Bond Fund
Purchases of investment securities,       excluding short-term and       U.S. government securities	$	2,523,335	$	32,690,466	$	12,109,264
Purchases of U.S. government       securities		35,409,433		––		––
Purchases of short-term securities		254,901,846		586,993,184		176,273,238
Purchases of options		––		32,988,997		––
Proceeds from maturities and       sales of investment securities,       excluding short-term and       U.S. government securities		10,999,790		29,100,758		11,438,716
Proceeds from maturities and sales       of U.S. government securities		17,605,543		––		––
Proceeds from maturities and sales       of short-term securities		251,429,528		583,096,875		175,073,176
Proceeds from options		––		33,996		––

	Ivy Science and Technology Fund		Ivy Small Cap Growth Fund
Purchases of investment securities, excluding       short-term and U.S. government securities	$	218,022,286	$	206,510,161
Purchases of U.S. government securities		––		––
Purchases of short-term securities		1,419,345,434		1,192,366,754
Proceeds from maturities and sales of       investment securities, excluding short-term       and U.S.government securities		171,078,000		236,863,106
Proceeds from maturities and sales of       U.S. government securities		––		––
Proceeds from maturities and sales of       short-term securities		1,398,954,891		1,195,124,460

For Federal income tax purposes, cost of investments owned at September 30, 2007 and the related unrealized appreciation (depreciation) were as follows:

	Cost		Appreciation		Depreciation		Aggregate Appreciation (Depreciation)
Ivy Asset Strategy Fund	$	3,904,128,303	$	1,064,808,207	$	4,604,685	$	1,060,203,522
Ivy Capital Appreciation Fund		410,862,107		44,296,138		5,384,945		38,911,193
Ivy Core Equity Fund		212,933,461		69,465,657		1,920,455		67,545,202
Ivy Energy Fund		18,302,242		3,565,390		196,452		3,368,938
Ivy High Income Fund		136,317,103		1,514,378		1,899,457		(385,079)
Ivy Large Cap Growth Fund		288,741,823		102,321,121		1,896,797		100,424,324
Ivy Limited-Term Bond Fund		65,918,158		487,814		249,861		237,953
Ivy Mid Cap Growth Fund		112,047,182		52,610,228		4,737,870		47,872,358
Ivy Money Market Fund		83,331,280		––		––		––
Ivy Municipal Bond Fund		25,849,462		527,478		62,586		464,892
Ivy Science and     Technology Fund		421,252,180		129,969,868		25,945,828		104,024,040
Ivy Small Cap Growth Fund		464,396,129		128,176,094		26,598,528		101,577,566

NOTE 4 - Federal Income Tax Matters

For Federal income tax purposes, the Funds' distributed and undistributed earnings and profit for the fiscal year ended March 31, 2007 and the related net capital losses and post-October activity were as follows:

	Ivy Asset Strategy Fund			Ivy Capital Appreciation Fund			Ivy Core Equity Fund
Net ordinary income		$	34,798,032		$	––		$	––
Distributed ordinary income			7,899,868			––			––
Undistributed ordinary income			31,028,864			––			––
Realized long-term capital gains			31,700,032			472,981			34,352,215
Distributed long-term capital gains			10,641,807			––			26,873,451
Undistributed long-term capital gains			26,238,182			472,981			15,885,350
Net capital losses			––			––			––
Post-October losses deferred			467,682			––			675

	Ivy Energy Fund			Ivy High Income Fund				Ivy Large Cap Growth Fund
Net ordinary income		$	––		$	6,245,926			$	––
Distributed ordinary income			––			6,206,184				––
Undistributed ordinary income			––			114,122	*			––
Realized long-term capital gains			––			––				––
Distributed long-term capital gains			––			––				––
Undistributed long-term capital gains			––			––				––
Net capital losses			––			––				––
Post-October losses deferred			––			––				––

	Ivy Limited- Term Bond Fund				Ivy Mid Cap Growth Fund			Ivy Money Market Fund
Net ordinary income		$	1,641,448			$	––		$	2,759,804
Distributed ordinary income			1,638,795				––			2,743,535
Undistributed ordinary income			32,035	*			––			43,074
Realized long-term capital gains			––				––			––
Distributed long-term capital gains			––				––			––
Undistributed long-term capital gains			––				––			––
Net capital losses			––				––			––
Post-October losses deferred			140,298				––			––
*This entire amount was distributed prior to September 30, 2007.

	Ivy Municipal Bond Fund				Ivy Science and Technology Fund			Ivy Small Cap Growth Fund
Net ordinary income		$	772,888			$	––		$	––
Distributed ordinary income			772,878				––			––
Undistributed ordinary income			14,608	*			––			––
Realized long-term capital gains			––				11,771,841			40,237,851
Distributed long-term capital gains			––				807,866			75,772,222
Undistributed long-term capital gains			––				11,771,058			13,682,023
Net capital losses			––				––			––
Post-October losses deferred			17,109				1,571			––
*This entire amount was distributed prior to September 30, 2007.

Internal Revenue Code regulations permit each Fund to defer into its next fiscal year net capital losses or net long-term capital losses and currency losses incurred between each November 1 and the end of its fiscal year (post-October losses).

Capital loss carryovers are available to offset future realized capital gain net income incurred in the 8 taxable years succeeding the loss year for Federal income tax purposes. The following shows the totals by year in which the capital loss carryovers will expire if not utilized.

	Ivy Core Equity Fund			Ivy High Income Fund			Ivy Large Cap Growth Fund
March 31, 2009		$	1,310,041		$	––		$	3,706,365
March 31, 2010			3,127,140			963,818			2,102,400
March 31, 2011			1,479,061			1,182,962			2,676,587
March 31, 2012			––			––			608,471
March 31, 2014			––			105,076			––
Total carryover		$	5,916,242		$	2,251,856		$	9,093,823

	Ivy Limited- Term Bond Fund			Ivy Mid Cap Growth Fund			Ivy Municipal Bond Fund
March 31, 2009		$	––		$	10,147,740		$	179,309
March 31, 2010			––			17,363,901			230,753
March 31, 2011			421,141			5,387,010			75,199
March 31, 2012			––			949,121			––
March 31, 2014			116,816			––			––
Total carryover		$	537,957		$	33,847,772		$	485,261

	Ivy Science and Technology Fund			Ivy Small Cap Growth Fund
March 31, 2008		$	––		$	629,293
March 31, 2009			827,519			3,509,352
March 31, 2010			413,760			2,069,323
March 31, 2011			413,760			564,364
Total carryover		$	1,655,039		$	6,772,332

Ivy US Blue Chip Fund was merged into Ivy Core Equity Fund as of June 16, 2003 and Advantus Index 500 Fund was merged into Ivy Core Equity Fund as of December 8, 2003. At the time of the mergers, Ivy US Blue Chip Fund and Advantus Index 500 Fund had capital loss carryovers available to offset future gains of the Ivy Core Equity Fund. Ivy US Blue Chip Fund's carryovers are limited to $1,479,061 for each period ending from March 31, 2008 through 2011 plus any unused limitations from prior years.

Advantus Horizon Fund was merged into Ivy Large Cap Growth Fund as of December 8, 2003. At the time of the merger, Advantus Horizon Fund had capital loss carryovers available to offset future gains of the Ivy Large Cap Growth Fund. These carryovers are limited to $1,383,732 for each period ending from March 31, 2008 through 2010 plus any unused limitations from prior years and the amount of certain built-in gains realized, if any.

Ivy US Emerging Growth Fund was merged into Ivy Mid Cap Growth Fund as of June 16, 2003. At the time of the merger, Ivy Mid Cap Growth Fund had capital loss carryovers available to offset future gains. These carryovers are limited to $5,665,965 for the period ending March 31, 2008 and $1,182,294 for each period ending from March 31, 2009 through 2011 and $197,085 for the period ending March 31, 2012 plus any unused limitations from prior years.

Ivy Global Science & Technology Fund was merged into Ivy Science and Technology Fund as of June 16, 2003. At the time of the merger, Ivy Global Science & Technology Fund had capital loss carryovers available to offset future gains of the Ivy Science and Technology Fund. These carryovers are limited to $413,760 for each period ending from March 31, 2008 through 2011 plus any unused limitations from prior years.

Advantus Enterprise Fund was merged into Ivy Small Cap Growth Fund as of December 8, 2003. At the time of the merger, Advantus Enterprise Fund had capital loss carryovers available to offset future gains of the Ivy Small Cap Growth Fund. These carryovers are limited to $2,069,323 for each period ending from March 31, 2008 through 2010 and $564,364 for the period ending March 31, 2011 plus any unused limitations from prior years.

NOTE 5 - Multiclass Operations

Each Fund within the Corporation currently offers five classes of shares, Class A, Class B, Class C, Class I and Class Y (other than Money Market Fund which offers Class A and Class E shares and Municipal Bond Fund which does not offer Class E and Class I shares), and all Funds except Ivy Energy Fund, Ivy Limited-Term Bond Fund and Ivy Municipal Bond Fund offer Class E shares. Each share class has equal rights as to assets and voting privileges. In addition, Large Cap Growth Fund, Mid Cap Growth Fund, Science and Technology Fund and Small Cap Growth Fund offer Class R shares, which also have equal rights as to assets and voting privileges. Ivy Money Market Fund Class B and Class C shares are no longer available for investment. A comprehensive discussion of the terms under which shares of each class are offered is contained in the Prospectus and the Statement of Additional Information for the Corporation.

Income, non-class specific expenses, and realized and unrealized gains and losses are allocated daily to each class of shares based on the value of their relative net assets as of the beginning of each day adjusted for the prior day's capital share activity.

Transactions in capital stock for the six-month period ended September 30, 2007 are summarized below. Amounts are in thousands.

	Ivy Asset Strategy Fund				Ivy Capital Appreciation Fund				Ivy Core Equity Fund
Shares issued from sale of shares:
Class A			36,288				24,000				1,335
Class B			2,140				602				76
Class C			37,730				4,752				325
Class E			128				47				42
Class I			192				1,004				27
Class Y			12,508				3,462				67
Shares issued from reinvestment of       dividends and/or capital       gains distribution:
Class A			275				––				––
Class B			––				––				––
Class C			––				––				––
Class E			––	*			––				––
Class I			––	*			––				––
Class Y			23				––				––
Shares redeemed:
Class A			(6,360	)			(2,169	)			(1,019	)
Class B			(375	)			(84	)			(119	)
Class C			(2,889	)			(228	)			(1,619	)
Class E			(––	)*			(––	)*			(––	)*
Class I			(18	)*			(12	)			(7	)
Class Y			(1,116	)			(314	)			(162	)
Increase (decrease) in outstanding       capital shares			78,526				31,060				(1,054	)
Value issued from sale of shares:
Class A		$	825,305			$	264,181			$	14,320
Class B			47,451				6,181				758
Class C			839,531				48,718				3,276
Class E			2,865				498				448
Class I			4,285				11,506				300
Class Y			289,626				37,976				753
Value issued from reinvestment of       dividends and/or capital       gains distribution:
Class A			6,037				––				––
Class B			––				––				––
Class C			––				––				––
Class E			6				––				––
Class I			12				––				––
Class Y			523				––				––
Value redeemed:
Class A		(142,629		)		(23,466		)		(10,907		)
Class B			(8,230	)			(861	)			(1,194	)
Class C		(63,762		)			(2,347	)		(16,371		)
Class E			(10	)			(1	)			(1	)
Class I			(412	)			(129	)			(74	)
Class Y			(24,814	)			(3,400	)			(1,741	)
Increase (decrease) in       outstanding capital		$	1,775,784			$	338,856			$	(10,433	)

	Ivy Energy Fund				Ivy High Income Fund				Ivy Large Cap Growth Fund
Shares issued from sale of shares:
Class A			857				4,614				7,373
Class B			46				158				398
Class C			71				231				297
Class E			10				54				13
Class I			10				29				121
Class R			NA				NA				––	*
Class Y			45				143				2,273
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			––				369				––
Class B			––				22				––
Class C			––				60				––
Class E			––				1				––
Class I			––				1				––
Class R			NA				NA				––
Class Y			––				24				––
Shares redeemed:
Class A			(96	)			(1,946	)			(3,187	)
Class B			(10	)			(98	)			(343	)
Class C			(5	)			(270	)			(370	)
Class E			(––	)			(––	)*			(––	)*
Class I			(––	)			(4	)			(29	)
Class R			NA				NA				(––	)*
Class Y			(15	)			(776	)			(898	)
Increase in outstanding capital shares			913				2,612				5,648
Value issued from sale of shares:
Class A		$	10,176			$	40,640			$	98,342
Class B			549				1,392				4,708
Class C			840				2,033				3,627
Class E			100				477				152
Class I			100				259				1,475
Class R			NA				NA				1
Class Y			537				1,254				32,703
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			––				3,214				––
Class B			––				189				––
Class C			––				521				––
Class E			––				11				––
Class I			––				9				––
Class R			NA				NA				––
Class Y			––				212				––
Value redeemed:
Class A		(1,145		)		(17,035		)		(40,682		)
Class B			(114	)			(855	)			(4,019	)
Class C		(61		)			(2,363	)			(4,482	)
Class E			(––	)			(4	)		(7		)
Class I			(––	)			(33	)		(374		)
Class R			NA				NA			(––		)*
Class Y			(176	)			(6,970	)		(11,246		)
Increase in outstanding capital		$	10,806			$	22,951			$	80,198
*Not shown due to rounding.

	Ivy Limited- Term Bond Fund				Ivy Mid Cap Growth Fund				Ivy Money Market Fund
Shares issued from sale of shares:
Class A			1,955				1,354				73,446
Class B			103				51				2,750
Class C			203				55				9,368
Class E			10				21				449
Class I			16				48				NA
Class R			NA				1				NA
Class Y			33				235				NA
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			72				––				1,379
Class B			6				––				53
Class C			15				––				123
Class E			––	*			––				6
Class I			––	*			––				NA
Class R			NA				––				NA
Class Y			2				––				NA
Shares redeemed:
Class A			(750	)		(854		)		(62,937		)
Class B			(74	)			(93	)			(2,540	)
Class C			(304	)			(116	)		(6,778		)
Class E			(––	)			(––	)*			(44	)
Class I			(4	)			(9	)			NA
Class R			NA				(––	)*			NA
Class Y			(59	)			(143	)			NA
Increase in outstanding capital shares			1,224				550				15,275
*Not shown due to rounding.
Value issued from sale of shares:
Class A		$	19,777			$	18,820			$	73,445
Class B			1,038				662				2,750
Class C			2,058				733				9,368
Class E			100				288				449
Class I			165				651				NA
Class R			NA				14				NA
Class Y			333				3,327				NA
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			730				––				1,379
Class B			62				––				53
Class C			151				––				123
Class E			2				––				6
Class I			3				––				NA
Class R			NA				––				NA
Class Y			16				––				NA
Value redeemed:
Class A		(7,595		)		(11,858		)		(62,936		)
Class B			(751	)			(1,202	)			(2,540	)
Class C			(3,074	)			(1,545	)		(6,778		)
Class E			(––	)			(5	)			(44	)
Class I			(45	)			(135	)			NA
Class R			NA				(6	)			NA
Class Y			(593	)			(1,972	)			NA
Increase in outstanding capital		$	12,377			$	7,772			$	15,275

	Ivy Municipal Bond Fund				Ivy Science and Technology Fund				Ivy Small Cap Growth Fund
Shares issued from sale of shares:
Class A			386				2,179				1,701
Class B			30				109				61
Class C			42				513				360
Class E			NA				20				20
Class I			NA				93				135
Class R			NA				8				4
Class Y			––	*			1,593				790
Shares issued from reinvestment of dividends       and/or capital gains distribution:
Class A			16				––				––
Class B			1				––				––
Class C			14				––				––
Class E			NA				––				––
Class I			NA				––				––
Class R			NA				––				––
Class Y			––	*			––				––
Shares redeemed:
Class A			(67	)		(1,151		)		(1,265		)
Class B			(24	)			(63	)			(141	)
Class C			(221	)			(396	)		(2,216		)
Class E			NA				(––	)*			(––	)*
Class I			NA				(12	)			(7	)
Class R			NA				(––	)*			(––	)*
Class Y			(––	)			(436	)			(1,247	)
Increase (decrease) in outstanding       capital shares			177				2,457				(1,805	)
Value issued from sale of shares:
Class A		$	4,248			$	67,508			$	23,276
Class B			335				3,112				774
Class C			462				14,967				4,610
Class E			NA				625				265
Class I			NA				2,817				1,970
Class R			NA				258				60
Class Y			––	*			50,549				11,966
Value issued from reinvestment of dividends       and/or capital gains distribution:
Class A			180				––				––
Class B			7				––				––
Class C			154				––				––
Class E			NA				––				––
Class I			NA				––				––
Class R			NA				––				––
Class Y			––	*			––				––
Value redeemed:
Class A		(742		)		(35,389		)		(17,339		)
Class B			(266	)		(1,800		)			(1,774	)
Class C		(2,431		)		(11,494		)		(28,490		)
Class E			NA			(6		)		(4		)
Class I			NA			(387		)		(114		)
Class R			NA			(10		)		(1		)
Class Y			(––	)		(13,654		)		(18,718		)
Increase (decrease) in outstanding capital		$	1,947			$	77,096			$	(23,519	)
*Not shown due to rounding.

Transactions in capital stock for the fiscal year ended March 31, 2007, are summarized below. Amounts are in thousands.

	Ivy Asset Strategy Fund				Ivy Capital Appreciation Fund				Ivy Core Equity Fund
Shares issued from sale of shares:
Class A			53,408				3,702				2,099
Class B			4,392				238				157
Class C			46,972				613				1,230
Class Y			9,541				920				178
Shares issued from reinvestment of       dividends and/or capital       gains distribution:
Class A			311				––				745
Class B			31				––				116
Class C			255				––				1,825
Class Y			27				––				13
Shares redeemed:
Class A			(13,879	)			(1,786	)			(1,791	)
Class B			(517	)			(101	)			(336	)
Class C			(3,872	)			(242	)			(3,881	)
Class Y			(1,291	)			(12	)			(66	)
Increase in outstanding capital shares			95,378				3,332				289
Value issued from sale of shares:
Class A		$	1,046,947			$	35,838			$	21,689
Class B			84,558				2,138				1,543
Class C			908,531				5,621				12,102
Class Y			190,626				9,302				1,904
Value issued from reinvestment of       dividends and/or capital       gains distribution:
Class A			6,150				––				7,513
Class B			602				––				1,090
Class C			4,980				––				17,360
Class Y			525				––				135
Value redeemed:
Class A		(273,958		)		(17,219		)		(18,592		)
Class B			(9,904	)			(895	)			(3,270	)
Class C		(74,223		)			(2,122	)		(37,921		)
Class Y			(25,233	)			(121	)			(709	)
Increase in outstanding capital		$	1,859,601			$	32,542			$	2,844

	Ivy Energy Fund				Ivy High Income Fund				Ivy Large Cap Growth Fund
Shares issued from sale of shares:
Class A			732				6,302				7,380
Class B			78				254				679
Class C			113				491				899
Class R			NA				NA				1
Class Y			53				121				2,166
Shares issued from reinvestment of       dividends and/or capital       gains distribution:
Class A			––				387				––
Class B			––				36				––
Class C			––				113				––
Class R			NA				NA				––
Class Y			––				84				––
Shares redeemed:
Class A			(225	)			(2,470	)			(7,169	)
Class B			(4	)			(191	)			(570	)
Class C			(13	)			(621	)			(809	)
Class R			NA				NA				(––	)*
Class Y			(––	)*			(104	)			(2,847	)
Increase (decrease) in outstanding       capital shares			734				4,402				(270	)
Value issued from sale of shares:
Class A		$	7,253			$	54,790			$	83,858
Class B			783				2,214				7,172
Class C			1,135				4,267				9,729
Class R			NA				NA				13
Class Y			530				1,053				25,026
Value issued from reinvestment of       dividends and/or capital       gains distribution:
Class A			––				3,369				––
Class B			––				310				––
Class C			––				982				––
Class R			NA				NA				––
Class Y			––				733				––
Value redeemed:
Class A		(2,216		)		(21,611		)		(81,729		)
Class B			(40	)			(1,661	)			(6,034	)
Class C		(125		)			(5,379	)			(8,760	)
Class R			NA				NA			(––		)*
Class Y			(––	)*			(903	)		(32,736		)
Increase (decrease) in outstanding capital		$	7,320			$	38,164			$	(3,461	)
*Not shown due to rounding.

	Ivy Limited- Term Bond Fund				Ivy Mid Cap Growth Fund				Ivy Money Market Fund
Shares issued from sale of shares:
Class A			1,882				2,170				102,016
Class B			166				157				9,238
Class C			515				148				15,257
Class R			NA				––	*			NA
Class Y			38				368				NA
Shares issued from reinvestment of       dividends and/or capital       gains distribution:
Class A			108				––				2,277
Class B			11				––				128
Class C			28				––				221
Class R			NA				––				NA
Class Y			5				––				NA
Shares redeemed:
Class A			(1,858	)		(2,515		)		(89,268		)
Class B			(212	)			(266	)			(8,185	)
Class C			(676	)			(322	)		(12,507		)
Class R			NA				(––	)*			NA
Class Y			(88	)			(327	)			NA
Increase (decrease) in outstanding       capital shares			(81	)			(587	)			19,177
Value issued from sale of shares:
Class A		$	18,871			$	26,855			$	102,016
Class B			1,666				1,831				9,238
Class C			5,162				1,750				15,257
Class R			NA				––	*			NA
Class Y			384				4,644				NA
Value issued from reinvestment of dividends and/or capital gains distribution:
Class A			1,082				––				2,277
Class B			106				––				128
Class C			285				––				221
Class R			NA				––				NA
Class Y			53				––				NA
Value redeemed:
Class A		(18,672		)		(30,759		)		(89,268		)
Class B			(2,127	)			(3,096	)			(8,185	)
Class C			(6,786	)			(3,800	)		(12,507		)
Class R			NA				(––	)*			NA
Class Y			(891	)			(4,175	)			NA
Increase (decrease) in outstanding capital		$	(867	)		$	(6,750	)		$	19,177
*Not shown due to rounding.

	Ivy Municipal Bond Fund			Ivy Science and Technology Fund				Ivy Small Cap Growth Fund
Shares issued from sale of shares:
Class A		317				3,149			2,131
Class B		38				192			176
Class C		254				684			1,059
Class R		NA				11			––	*
Class Y		––	*			1,454			2,966
Shares issued from reinvestment       of dividends and/or       capital gains distribution:
Class A		23				12			1,179
Class B		2				2			197
Class C		33				9			3,122
Class R		NA				––	*		––	*
Class Y		––	*			5			1,376
Shares redeemed:
Class A		(125	)		(2,776		)	(4,385		)
Class B		(53	)			(201	)		(438	)
Class C		(326	)			(1,071	)	(6,082		)
Class R		NA				(––	)*		(––	)*
Class Y		(––	)*			(869	)		(4,305	)
Increase (decrease) in outstanding       capital shares		163				601			(3,004	)
Value issued from sale of shares:
Class A	$	3,521			$	85,294		$	29,123
Class B		421				4,854			2,233
Class C		2,813				17,647			13,539
Class R		NA				316			5
Class Y		––	*			40,920			44,280
Value issued from reinvestment of       dividends and/or capital       gains distribution:
Class A		259				340			14,927
Class B		17				39			2,305
Class C		365				232			37,276
Class R		NA				––	*		15
Class Y		2				139			19,192
Value redeemed:
Class A	(1,385		)		(73,728		)	(58,235		)
Class B		(585	)		(5,029		)		(5,462	)
Class C	(3,609		)		(27,240		)	(77,631		)
Class R		NA			(––		)*	(3		)
Class Y		(22	)		(24,032		)	(63,433		)
Increase (decrease) in       outstanding capital	$	1,797			$	19,752		$	(41,869	)
*Not shown due to rounding.

NOTE 6 - Options

Options purchased by a Fund are accounted for in the same manner as marketable portfolio securities. The cost of portfolio securities acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from securities sold through the exercise of put options are decreased by the premium paid to purchase the put.

When a Fund writes (sells) an option, an amount equal to the premium received by a Fund is recorded as a liability. The amount of the liability is subsequently adjusted to reflect the current market value of the option written. The current market value of an option is the last sales price on the principal exchange on which the option is traded or, in the absence of transactions, the mean between the bid and asked prices or at a value supplied by a broker-dealer. When an option expires on its stipulated expiration date or a Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the call option was sold) and the liability related to such option is extinguished. When a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether a Fund has realized a gain or loss. For each Fund, when a written put is exercised, the cost basis of the securities purchased by a Fund is reduced by the amount of the premium received.

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

	Number of Contracts			Premiums Received
Outstanding at March 31, 2007		212			$	158,470
Options written		2,319				362,177
Options terminated in closing purchase transactions	(2,319		)		(362,177		)
Options exercised		(212	)		(158,470		)
Options expired		(––	)			(––	)
Outstanding at September 30, 2007		––			$	––

For Ivy Mid Cap Growth Fund, transactions in written call options were as follows:

	Number of Contracts			Premiums Received
Outstanding at March 31, 2007		8			$	5,980
Options written		162,810				405,849
Options terminated in closing purchase transactions	(81,035		)		(140,549		)
Options exercised		(––	)			(––	)
Options expired		(1,110	)		(76,858		)
Outstanding at September 30, 2007		80,673			$	194,422

NOTE 7 - Swaps

Each Fund may invest in swap agreements, which are agreements to exchange the return generated by one instrument for the return generated by another instrument. Each Fund may enter into credit default, total return, variance and other swap agreements to: 1) preserve a return or a spread on a particular investment or portion of its portfolio; 2) to protect against any increase in the price of securities the Fund anticipates purchasing at a later date; or 3) to attempt to enhance yield.

Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying security in the event of a defined credit event, such as payment default or bankruptcy. Under a credit default swap one party acts as a guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying security at par if the defined credit event occurs. Each Fund may enter into credit default swaps in which either it or its counterparty act as the guarantor.

Total return swaps involve a commitment to pay periodic interest payments in exchange for a market-linked return based on a security or a basket of securities representing a variety of securities or a particular index. To the extent the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty.

Variance swaps involve a contract in which two parties agree to exchange cash flows based on the measured variance of a specified underlying security or index during a certain time period. On the trade date, the two parties agree on the strike price of the contract (the reference level against which cash flows are exchanged), as well as the number of units in the transaction and the length of the contract. Like an option contract, the value of a variance swap is influenced by both realized and implied volatility, as well as the passage of time. Each Fund may enter into variance swaps to manage volatility risk.

The creditworthiness of firms with which a Fund enters into a swap agreement is monitored by IICO. If a firm's creditworthiness declines, the value of the agreement would likely decline, potentially resulting in losses. If a default occurs by the counterparty to such a transaction, the Fund will have contractual remedies pursuant to the agreement related to the transaction.

Swaps are marked-to-market daily based on valuations provided by a pricing vendor of a broker-dealer. Changes in value are recorded as unrealized appreciation (depreciation) in the Statement of Operations. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the custodian or counterparty. Payments received or made at the beginning of the measurement period are reflected as such on the Statement of Assets and Liabilities. These upfront payments, as well as any periodic payments, are recorded as realized gain or loss in the Statement of Operations. Gains or losses may be realized upon termination of the swap agreement.

Entering into swap agreements involves certain risks. Among these are possible failure of the counterparty to fulfill its obligations, possible lack of liquidity, and unfavorable changes in interest rates or underlying investments.

NOTE 8 - Futures

The Corporation may engage in buying and selling futures contracts. Upon entering into a futures contract, the Corporation is required to deposit, in a segregated account, an amount of cash or United States Treasury Bills equal to a varying specified percentage of the contract amount. This amount is known as the initial margin. Subsequent payments (variation margins) are made or received by the Corporation each day, dependent on the daily fluctuations in the value of the underlying debt security or index. These changes in the variation margins are recorded by the Corporation as unrealized gains or losses. Upon the closing of the contracts, the cumulative net change in the variation margin is recorded as realized gain or loss. The Corporation uses futures to attempt to reduce the overall risk of its investments.

Renewal of Investment Management Agreement
for Ivy Funds, Inc.

At a Meeting of the Board of Directors of the Ivy Funds, Inc. (the "Corporation") held on August 28 and 29, 2007, the Directors, including all of the Directors who are not "interested persons" as defined in Section 2(a)(19) of the 1940 Act, unanimously approved the continuance of the existing Investment Management Agreement between Ivy Investment Management Company ("IICO") and the Corporation (with respect to Ivy Asset Strategy Fund, Ivy Capital Appreciation Fund, Ivy Core Equity Fund, Ivy Energy Fund, Ivy High Income Fund, Ivy Large Cap Growth Fund, Ivy Limited-Term Bond Fund, Ivy Mid Cap Growth Fund, Ivy Money Market Fund, Ivy Municipal Bond Fund, Ivy Science and Technology Fund and Ivy Small Cap Growth Fund).

The Board's Independent Directors were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its review of the various agreements, including, among other things, the nature and the quality of the services provided by IICO, profitability (including any fall-out benefits) from the relationships with the Funds, economies of scale, the role played by the Independent Directors, and information on comparative fees and expenses. The Board also considered the written responses and supplementary materials produced by IICO in response to a 15(c) due diligence request list submitted by the Independent Directors' counsel prior to the meeting. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO. The Board also received extensive materials on performance, expenses and comparable fund information from Lipper, Inc., an independent mutual fund rating service. Finally, the Independent Directors received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Directors discussed this material extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members, after which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board's determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the fact that they were provided with performance and expense information for each of the Funds during the year in regularly scheduled Board meetings, during which they met with the Funds' portfolio managers and other investment personnel. In that regard, they discussed the nature, extent and quality of services provided to each Fund by IICO, taking into account the investment objective and strategy of the Fund and the knowledge the Board gained from those regular meetings, including from the materials provided in connection with those meetings. In addition, the Board reviewed the resources and key personnel of IICO. The Board also considered other services provided to the Funds by IICO, such as managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to the Funds' investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations. The Board concluded that the nature and extent of the services provided by IICO were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with the Funds

The Board next discussed whether IICO derives any other direct or indirect benefit from serving the Funds. The Board considered benefits that accrue to IICO from its respective relationship with a Fund, including the fact that a variety of services are provided by affiliates of IICO, including distribution, shareholder servicing and transfer agency services. After full consideration of these and other factors, the Board concluded that IICO, nor any of its affiliates, receive any additional direct or indirect benefits that would preclude the Board from approving the continuation of the investment advisory contract with IICO.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds' shareholders. In that context, the Board discussed the current level of the Funds' advisory fee breakpoints and also considered the current and anticipated asset levels of the Funds and the potential for growth in each Fund. With respect to the Asset Strategy Fund, the Board requested that management examine the continuing appropriateness of that Fund's breakpoint schedule. The Board also noted that as the assets of the Funds continue to increase, the Funds' expense ratios generally continue to fall. The Board concluded that the current asset size of the Funds and other relevant factors did not warrant further reevaluation or restructuring of the fee breakpoints for the Funds at this time.

Performance of the Funds and Costs of Services Provided

The Board considered, on a Fund by Fund basis, the performance of each Fund and the costs of the services provided. The Board focused particularly on the Ivy High Income Fund, Ivy Municipal Bond Fund and Ivy Limited Term Bond Fund.

Specifically, the Board examined the investment performance of each Fund, including quintile ranking for short- and long-term time periods and each Fund's performance against its peers. The Board also examined the performance of each Fund against its respective Lipper index for the same periods. After extensively reviewing all of the performance information provided, the Board concluded that the Funds' performance in each asset class was acceptable. Although the performance of some of the focus Funds lagged that of their peers or respective Lipper index, the Board recognized that IICO had taken, or was taking, the steps to address that underperformance, including changes in portfolio managers, and determined to continue to monitor closely the performance of those Funds.

The Board also considered the expenses of each Fund, the expense ratio of each Fund, and the expense limitation arrangements entered into (and with respect to the Ivy Limited Term Bond Fund, the expense limitation agreement proposed to be entered into) by IICO in light of the services provided by IICO. The Board also compared each Fund's expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to separately managed accounts in the same asset class for certain Funds. In that regard, the Board noted that IICO performs significant additional services for those Funds. The Board also took into account the information on IICO's profitability in managing the Funds, including the methodology used to calculate profitability. The Board finally considered the amount of assets in each Fund, each Fund's average account size and how those factors affect the Funds' expense ratios. After completing this examination, the Independent Directors concluded that the Fund's expenses are appropriate at the current time.

The Board of Directors/Trustees for each of the mutual funds has appointed an independent fee consultant. Posted below is a summary of the written fee evaluation of such consultant for the most recent year.

During August of 2007, and as part of their regularly scheduled meetings, the Boards of Trustees of Ivy Funds and the Board of Directors of Ivy Funds, Inc. (collectively, the "Ivy Funds" and any separate series thereof an "Ivy Fund") reviewed significant information in connection with considering the continuation of existing investment management agreements currently in effect between Ivy Investment Management Company ("IICO") and the Ivy Funds. Pursuant to the Assurance of Discontinuance between Waddell & Reed, Inc., Waddell & Reed Services Company ("WRSCO"), and Waddell & Reed Investment Management Company (collectively, "Waddell") and the Office of the New York Attorney General dated July 10, 2006 ("Assurance of Discontinuance"), the Trustees/Directors of the Ivy Funds engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO, an affiliate of Waddell, to the Ivy Funds. The independent fee consultant's review addressed the following fee-related factors:

1. The nature and quality of IICO's services to the Ivy Funds, including performance

2. Management fees (including any components thereof) charged by other mutual fund companies for like services

3. Management fees (including any components thereof) charged to institutional and other clients of IICO for like services

4. Costs to IICO and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit

5. Profit margins of IICO and its affiliates from supplying such services

6. Possible economies of scale as a fund grows larger

The following summarizes the findings of the independent fee consultant retained by the Trustees/Directors. ¹

¹ The independent fee consultant's evaluation was based on information provided by IICO, Lipper, Inc., other information providers and other independent analyses. The term "management fees" refers to the actual annual advisory and administrative fees, net of any fee waivers, paid by an Ivy Fund, as a percentage of such fund's average net assets. The term "total expenses" refers to the total annual expenses, net of any fee waivers, paid by an Ivy Fund, as a percentage of such fund's average net assets. Where these terms are used in reference to groups of Ivy Funds, numbers expressed are on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending February 28, 2007. In other areas, data is from various periods ending between December 31, 2006 and July 31, 2007.

Summary Findings

The independent fee consultant believes that IICO delivers strong levels of performance and service to the Ivy Funds in relation to IICO management fees and relative to investment advisers of comparable mutual funds. For the 36 months ended April 30, 2007, when compared to their respective peer groups established by Lipper, Inc. ("Lipper") approximately: (a) 21% of the Ivy Funds were in the top 10 percentiles; (b) 33% of the Ivy Funds were in the top quartile of performance; and (c) 62% of the Ivy Funds were in the top two quartiles. The independent fee consultant noted that the Ivy Funds' performance appears to be grounded in a number of institutional competitive advantages at IICO, including stock selection ability, ability to attract top talent, strategic vision, performance-focused culture, ability to manage smaller AUM funds, ability to serve small account sizes and an effective trading infrastructure.

For the 12 months ended March 31, 2007, the total expenses of the Ivy Funds on average were 7% above the mean total expenses of their respective Lipper Expense Group peers and 1% below the mean total expenses for their Lipper Expense Universes. The management fees for the Ivy Funds on average were 9% above the mean management fees for their Lipper Expense Groups and 10% above the means for their Lipper Expense Universes. Ivy Funds' small average account size and small fund AUM introduces certain biases in the Lipper analyses that can work against Ivy Funds in Lipper expense comparisons. As a result, the Lipper findings can be considered conservative. Within the larger Lipper averages, the management fees and total expenses of individual Ivy Funds and share classes are reasonable relative to their performance.

The independent fee consultant believes that the management fees IICO charges to the Ivy Funds also are reasonable in relation to the management fees it charges to its other institutional accounts. These institutional accounts have different service and infrastructure needs. Moreover, based on industry data, the average spread between management fees charged to the Ivy Funds and those charged to institutional accounts is below the average fee spreads observed at other investment advisers.

The independent fee consultant found that the level of profit earned by IICO from managing the Ivy Funds does not appear to be unreasonable. Waddell's overall profitability from managing the Ivy Funds and its other operations is below the mean profitability of other publicly traded peers, but appears adequate to enable IICO to continue to provide quality support to the Ivy Funds and their shareholders.

Analyses was undertaken by the independent fee consultant to measure economies of scale in the industry in a manner that would give an overall "net" view of any economies or diseconomies of scale across all cost elements. This analysis, however, was unable to quantitatively assess or confirm overall economies of scale in the IICO complex. A separate economy of pricing analysis, also undertaken by the independent fee consultant, did show that Ivy Funds incur lower fees and expenses with increasing fund AUM and with increasing average account size which the independent fee consultant believes should benefit Ivy Fund investors as the Ivy Funds mature.

Conclusions

The independent fee consultant concluded that the services provided by IICO and its affiliates and expenses incurred by the Ivy Funds over the year ending August 31, 2007 are reasonable and provide adequate justification for renewal of the Ivy Funds' existing advisory agreements.

Proxy Voting Information

Proxy Voting Guidelines

A description of the policies and procedures Ivy Funds, Inc. uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1.800.777.6472 and (ii) on the Securities and Exchange Commission's (SEC) website at www.sec.gov.

Proxy Voting Records

Information regarding how the Corporation voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on Form N-PX through the Ivy Funds' website at www.ivyfunds.com and on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule Information

A complete schedule of portfolio holdings for the first and third quarters of each fiscal year is filed with the Securities and Exchange Commission (SEC) on the Corporation's Form N-Q, 60 days after the end of the quarter. This form may be obtained in the following ways:

• On the SEC's website at www.sec.gov.
• For review and copy at the SEC's Public Reference Room in Washington, DC. Information on the operations of the Public Reference Room may be obtained by calling 1.800.SEC.0330.
• On the Ivy Funds' website at www.ivyfunds.com.

To All Traditional IRA Planholders:

As required by law, we are hereby providing notice to you that income tax may be withheld automatically from any distribution or withdrawal from a traditional IRA. A Fund is generally required to withhold taxes unless you make a written election not to have taxes withheld. The election may be made on the distribution/withdrawal form provided by Waddell & Reed, Inc. which can be obtained from your Waddell & Reed financial advisor or by submitting Internal Revenue Service Form W-4P. Once made, an election can be revoked by providing written notice to Waddell & Reed, Inc. If you elect not to have tax withheld you may be required to make payments of estimated tax. Penalties may be imposed by the IRS if withholding and estimated tax payments are not adequate.

THE IVY FUNDS FAMILY

Global/International Funds      

Cundill Global Value Fund
European Opportunities Fund
International Balanced Fund
International Core Equity Fund
International Growth Fund
Managed European/Pacific Fund
Managed International Opportunities Fund
Pacific Opportunities Fund

Domestic Equity Funds      

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

Fixed Income Funds      

Bond Fund
High Income Fund
Limited-Term Bond Fund
Mortgage Securities Fund
Municipal Bond Fund

Money Market Fund      

Money Market Fund

Specialty Funds      

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

1.800.777.6472
Visit us online at www.ivyfunds.com

The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Funds Distributor, Inc.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for the Ivy Funds, call your financial advisor or visit us online at www.ivyfunds.com. Please read the prospectus carefully before investing.

WRR3000SA (9-07)

ITEM 2. CODE OF ETHICS

Required in annual report only.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Required in annual report only.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Required in annual report only.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

See Item 1 Shareholder Report.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END

MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's board of directors.

ITEM 11. CONTROLS AND PROCEDURES.

(a)

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

(b)

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

ITEM 12. EXHIBITS.

(a)(1) Required in annual report only.

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

Attached hereto as Exhibit 99.CERT.

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

Attached hereto as Exhibit 99.906CERT.

SIGNATURES

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

Ivy Funds, Inc.

(Registrant)

By     /s/Kristen A. Richards

         Kristen A. Richards, Vice President and Assistant Secretary

Date: December 7, 2007

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

By     /s/Henry J. Herrmann

         Henry J. Herrmann, President and Principal Executive Officer

Date: December 7, 2007

By     /s/Joseph W. Kauten

         Joseph W. Kauten, Vice President and Principal Financial Officer

Date: December 7, 2007