N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-6569

IVY FUNDS

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)

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

Date of fiscal year end: March 31

Date of reporting period: September 30, 2010

ITEM 1. REPORTS TO STOCKHOLDERS.

Semiannual Report

September 30, 2010

Ivy Funds
Ivy Asset Strategy Fund
Ivy Asset Strategy New Opportunities Fund
Ivy Balanced Fund
Ivy Energy Fund
Ivy Global Natural Resources Fund
Ivy Real Estate Securities Fund
Ivy Science and Technology Fund

CONTENTS

Ivy Funds

President's Letter	3
Portfolio Highlights, Illustration of Fund Expenses and Schedule of Investments:
Ivy Asset Strategy Fund	4
Ivy Asset Strategy New Opportunities Fund	12
Ivy Balanced Fund	17
Ivy Energy Fund	23
Ivy Global Natural Resources Fund	26
Ivy Real Estate Securities Fund	31
Ivy Science and Technology Fund	35
Statement of Assets and Liabilities	39
Statement of Operations	41
Statement of Changes in Net Assets	42
Financial Highlights	46
Notes to Financial Statements	60
Renewal of Investment Management Agreement	79
Proxy Voting Information	83
Quarterly Portfolio Schedule Information	84
IRA Disclosure	85

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

PRESIDENT'S LETTER

Ivy Funds

SEPTEMBER 30, 2010 (UNAUDITED)  

Henry J. Herrmann, CFA

Dear Shareholder:

In the six months since our last report to you, investors have witnessed a dramatic reversal in investor sentiment. When the period opened, stocks and bonds were rallying as many economic indicators pointed to continued recovery and increasing stability in the U.S. economy. Investor confidence was further bolstered by stabilization of global credit markets and stronger-than-expected first-quarter 2010 corporate profits. Optimism abruptly changed, however, with the emergence of the European debt crisis, which created fears of a double-dip recession. The European banking system was negatively impacted when investors began to question the credit quality of several sovereign governments and whether the eurozone would be able to move past political strife to gain monetary stability. That scenario, in conjunction with data reflecting slowing U.S. economic growth and escalating concern about China's ability to slow the pace of its economy, drove a sharp global correction. Investors dodged riskier assets and de monstrated a flight to quality, ultimately driving U.S. bond yields to historical lows and fueling fears that the global economy could slip back into recession. The tide seemed to turn in September, however, traditionally a negative month for equities, with slightly stronger economic data and optimism that mid-term elections may drive more investor-friendly changes in Washington. Stocks staged a dramatic four-week rally that restored some optimism, as did an announcement from the National Bureau of Economic Research that the `Great Recession,' the longest-lasting since the Great Depression, officially ended in June of 2009.

The economy grew at a 1.7 percent annual rate in the second calendar quarter of 2010, and preliminary estimates for third-quarter growth appear positive. The S&P 500 Index declined 2.4 percent during the six months ended September 30, 2010, while international securities, as represented by the MSCI EAFE Index, declined 1.5 percent. Fixed-income markets, as measured by the Citigroup Broad Investment Grade Index, saw yields drop significantly.

Numerous imponderables remain, including persistent high unemployment and a housing sector that continues to struggle, particularly so after government stimulus was removed. Nonetheless, we are optimistic that better days are ahead. Interest rates are low, government policy remains accommodative, and companies are reporting more robust activity. Acquisition activity, a sign that companies are growing more willing to loosen the purse strings and funnel money into growing their operations, appears to be picking up.

Economic Snapshot

	9/30/10			3/31/10
S&P 500 Index	1141.20			1169.43
MSCI EAFE Index	1561.01			1584.27
Citigroup Broad Investment Grade Index (annualized yield to maturity)		2.33	%		3.26	%
U.S. unemployment rate		9.6	%		9.7	%
30-year fixed mortgage rate		4.35	%		4.99	%
Oil price per barrel	$79.97			$83.76

Sources: Bloomberg, U.S. Department of Labor

All government statistics shown are subject to periodic revision. The S&P 500 Index is an unmanaged index that tracks the stocks of 500 primarily large-cap U.S. companies. MSCI EAFE Index is an unmanaged index comprised of securities that represent the securities markets in Europe, Australasia and the Far East. Citigroup Broad Investment Grade Index is an unmanaged index comprised of securities that represent the bond market. Annualized yield to maturity is the rate of return anticipated on a bond if it is held until the maturity date. It is not possible to invest directly in any of these indexes. 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.

As always, we thank you for your continued trust in Ivy Funds, and encourage you to share in our optimism for the future.

Respectfully,

Henry J. Herrmann, CFA
President

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

PORTFOLIO HIGHLIGHTS

Ivy Asset Strategy Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	79.8%
Consumer Discretionary	26.6%
Financials	16.8%
Information Technology	16.6%
Energy	7.8%
Materials	3.3%
Consumer Staples	2.9%
Industrials	2.9%
Telecommunication Services	2.6%
Health Care	0.3%
Warrants	1.4%
Bullion (Gold)	12.7%
Options	0.4%
Bonds	0.1%
Corporate Debt Securities	0.1%
Cash and Cash Equivalents	5.6%

Lipper Rankings

Category: Lipper Global Flexible Portfolio Funds	Rank	Percentile
1 Year	127/180	71
3 Year	24/93	26
5 Year	8/54	15
10 Year	13/36	36

Past performance is no guarantee of future results. Rankings are for Class C shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

North America	29.6%
United States	29.6%
Pacific Basin	27.2%
China	14.9%
South Korea	3.9%
Other Pacific Basin	8.4%
Europe	18.6%
United Kingdom	4.2%
Germany	4.1%
Other Europe	10.3%
Bullion (Gold)	12.7%
South America	4.5%
Brazil	4.5%
Cash and Cash Equivalents, Options and Warrants	7.4%

Top 10 Equity Holdings

Company	Country	Sector
Wynn Resorts, Limited	United States	Consumer Discretionary
Standard Chartered plc	United Kingdom	Financials
Apple Inc.	United States	Information Technology
Hyundai Motor Company	South Korea	Consumer Discretionary
Sands China Ltd.	China	Consumer Discretionary
Volkswagen AG	Germany	Consumer Discretionary
Industrial and Commercial Bank of China Limited,      H Shares	China	Financials
MediaTek Incorporation	Taiwan	Information Technology
Starwood Hotels & Resorts Worldwide, Inc.	United States	Consumer Discretionary
Halliburton Company	United States	Energy

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

DISCLOSURE OF EXPENSES

Ivy Funds

(UNAUDITED)

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 Illustration of Fund Expenses for each Fund is 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, 2010.

Actual Expenses

The first line for each share class in each table 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 in each table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of five percent per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this five percent hypothetical example with the five percent hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or esxchange 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.

ILLUSTRATION OF FUND EXPENSES

Ivy Asset Strategy Fund

(UNAUDITED)

For the Six Months Ended      September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,016.10	1.03%	$5.14
Class B	$1,000	$1,012.00	1.84%	$9.26
Class C	$1,000	$1,012.40	1.76%	$8.85
Class E	$1,000	$1,016.50	1.00%	$5.04
Class I	$1,000	$1,017.30	0.78%	$3.93
Class R	$1,000	$1,014.80	1.32%	$6.65
Class Y	$1,000	$1,016.50	1.00%	$5.04
Based on 5% Return(2)
Class A	$1,000	$1,019.92	1.03%	$5.15
Class B	$1,000	$1,015.85	1.84%	$9.27
Class C	$1,000	$1,016.22	1.76%	$8.87
Class E	$1,000	$1,020.05	1.00%	$5.05
Class I	$1,000	$1,021.16	0.78%	$3.94
Class R	$1,000	$1,018.46	1.32%	$6.66
Class Y	$1,000	$1,020.06	1.00%	$5.05

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS		Shares	Value
Apparel, Accessories & Luxury Goods - 3.5%
Compagnie Financiere Richemont S.A. (A)		8,291	$	399,149
LVMH Moet Hennessy - Louis Vuitton (A)		2,652		388,982
				788,131
Automobile Manufacturers - 3.0%
Bayerische Motoren Werke Aktiengesellschaft (A)		337		23,607
Hyundai Motor Company (A)		4,918		659,956
				683,563
Biotechnology - 0.2%
Vertex Pharmaceuticals Incorporated (B)		1,684		58,204
Broadcasting - 0.6%
CBS Corporation, Class B (C)		9,264		146,929
Casinos & Gaming - 9.2%
Sands China Ltd. (A)(B)(D)		362,528		654,143
Sands China Ltd. (A)(B)		80,075		144,487
Wynn Macau, Limited (A)(B)(D)		14,907		25,783
Wynn Macau, Limited (A)(B)		125,029		216,255
Wynn Resorts, Limited (E)		12,130		1,052,520
				2,093,188
Communications Equipment - 0.8%
Juniper Networks, Inc. (B)(C)		5,903		179,156
Computer Hardware - 3.0%
Apple Inc. (B)(C)		2,394		679,411
Computer Storage & Peripherals - 2.1%
NetApp, Inc. (B)(C)		9,519		473,966
Construction & Farm Machinery & Heavy Trucks - 1.4%
AB Volvo, Class B (A)		9,681		142,196
Cummins Inc. (C)		2,010		182,047
Tata Motors Limited (A)		30		723
				324,966
Consumer Electronics - 1.2%
Koninklijke Philips Electronics N.V., Ordinary Shares (A)		8,571		269,371
Data Processing & Outsourced Services - 0.8%
Redecard S.A. (A)		11,790		184,095
Distributors - 1.2%
Li & Fung Limited (A)		47,042		264,652
Diversified Banks - 11.7%
Banco Santander Brasil S.A., ADR		3,576		49,247
Banco Santander Brasil S.A., Units (A)(D)		15,596		211,547
Banco Santander Central Hispano, S.A. (A)		18,306		232,515
BOC Hong Kong (Holdings) Limited (A)		55,028		174,469
HDFC Bank Limited (A)		998		55,266
ICICI Bank Limited (A)		12,646		313,218
Industrial and Commercial Bank of China Limited, H Shares (A)		828,490		617,189
Standard Chartered plc (A)		25,246		724,156
State Bank of India (A)		2,249		162,206
Turkiye Garanti Bankasi Anonim Sirketi (A)		20,347		118,152
				2,657,965
Diversified Metals & Mining - 3.3%
Companhia Vale de Rio Doce, ADR		6,619		206,960
Freeport-McMoRan Copper & Gold Inc., Class B (C)		3,949		337,172
Xstrata plc (A)		10,644		203,654
				747,786
Electrical Components & Equipment - 0.8%
First Solar, Inc. (B)(C)		1,229		181,137
Footwear - 1.0%
NIKE, Inc., Class B (C)		2,936		235,275
Hotels, Resorts & Cruise Lines - 2.9%
Ctrip.com International, Ltd. (B)		2,911		139,004
Starwood Hotels & Resorts Worldwide, Inc. (E)		9,908		520,650
				659,654
Industrial Conglomerates - 0.2%
General Electric Company (C)		2,832		46,012
Integrated Oil & Gas - 2.0%
ConocoPhillips (C)		8,086		464,402
Internet Software & Services - 0.5%
Baidu.com, Inc., ADR (B)		1,128		115,755
IT Consulting & Other Services - 2.7%
Cognizant Technology Solutions Corporation, Class A (B)(C)		6,260		403,557
Infosys Technologies Limited, ADR		2,969		199,850
				603,407
Life & Health Insurance - 1.8%
China Life Insurance Company Limited, H Shares (A)		82,856		327,309
Ping An Insurance (Group) Company of China, Ltd. (A)(D)		7,340		74,919
				402,228
Multi-Line Insurance - 0.2%
China Pacific Insurance (Group) Company Limited, H Shares (A)		11,657		43,796
Oil & Gas Drilling - 1.7%
Seadrill Limited (A)		13,266		383,246
Oil & Gas Equipment & Services - 4.1%
Halliburton Company (C)		15,189		502,297
Schlumberger Limited (C)		6,915		426,002
				928,299
Personal Products - 1.7%
Hengan International Group Company Limited (A)		21,026		209,618
Mead Johnson Nutrition Company		2,830		161,038
				370,656
Pharmaceuticals - 0.1%
Allergan, Inc.		172		11,417
Real Estate Development - 1.1%
China Overseas Land & Investment Limited (A)		40,986		86,738
China Resources Land Limited (A)		83,500		169,823
				256,561
Real Estate Operating Companies - 0.3%
Renhe Commercial Holdings Company Limited (A)(D)		412,457		77,081
Semiconductor Equipment - 0.9%
ASML Holding N.V., Ordinary Shares (A)		6,771		202,248
Semiconductors - 5.0%
Intel Corporation (C)		15,213		292,546
MediaTek Incorporation (A)		37,556		527,725
PMC-Sierra, Inc. (B)(E)		13,361		98,335
Samsung Electronics Co., Ltd. (A)		341		232,027
				1,150,633
Tobacco - 1.2%
Philip Morris International Inc. (C)		4,977		278,828
Trucking - 1.3%
A.P. Moller - Maersk A/S (A)		34		287,569
Wireless Telecommunication Service - 2.6%
China Mobile Limited (A)(F)		18,072		185,056
China Mobile Limited (A)		40,070		410,312
				595,368
TOTAL COMMON STOCKS - 74.1%			$	16,844,955
(Cost: $13,101,415)
INVESTMENT FUNDS - 0.0%
Multiple Industry
Vietnam Azalea Fund Limited (B)(G)(H)		1,100	$	4,774
(Cost: $7,268)
PREFERRED STOCKS
Automobile Manufacturers - 4.0%
Volkswagen AG (A)(D)		2,163		261,186
Volkswagen AG (A)		5,376		649,206
				910,392
Diversified Banks - 1.7%
Itau Unibanco Holding S.A., ADR (B)		16,334		394,954
TOTAL PREFERRED STOCKS - 5.7%			$	1,305,346
(Cost: $934,381)
WARRANTS - 1.4%
Multi-Line Insurance
China Pacific Insurance (Group) Company Limited		83,296	$	312,944
(Cost: $303,001)
CORPORATE DEBT SECURITIES	Principal
Automotive Manufacturers - 0.0%
Toyota Motor Credit Corporation,
2.740%, 1-18-15 (I)		$ 325		323
Construction Materials - 0.1%
CEMEX Espana, S.A.,
9.250%, 5-12-20 (F)		7,996		7,496

Forest Products - 0.0%
Sino-Forest Corporation,
10.250%, 7-28-14 (D)		4,700			5,452
Homebuilding - 0.0%
Desarrolladora Homex, S.A. de C.V.,
7.500%, 9-28-15			470		484
Independent Power Producers & Energy Traders - 0.0%
CESP - Companhia Energetica de Sao Paulo,
9.750%, 1-15-15 (F)(J)	BRL13,900				10,116
TOTAL CORPORATE DEBT SECURITIES - 0.1%				$	23,871
(Cost: $22,656)
PUT OPTIONS		Number of Contracts
KOSPI Composite Index,
Dec $225.00, Expires 12-9-10			32		6,154
S&P 500 Index:
Oct $1,075.00, Expires 10-18-10			4		1,475
Dec $1,075.00, Expires 12-20-10			2		5,413
Dec $1,075.00, Expires 12-20-10			6		15,848
Dec $1,100.00, Expires 12-20-10			19		63,690
TOTAL PUT OPTIONS - 0.4%				$	92,580
(Cost: $111,685)
UNITED STATES GOVERNMENT AGENCY       OBLIGATIONS - 0.0%		Principal
Mortgage-Backed Obligations
Federal Home Loan Mortgage Corporation Agency       REMIC/CMO (Interest Only): (K)
4.500%, 8-15-17		$ 1,218			29
5.500%, 9-15-17			1,997		154
5.000%, 11-15-17			982		65
5.000%, 5-15-18			2,471		231
5.000%, 4-15-19			178		12
5.000%, 4-15-19			84		6
5.000%, 11-15-22			178		7
5.500%, 3-15-23			1,755		204
5.000%, 5-15-23			137		8
5.000%, 6-15-23			1,451		85
5.000%, 6-15-23			1,137		69
5.000%, 8-15-23			113		7
5.500%, 4-15-25			26		1
5.500%, 10-15-25			2,220		338
5.000%, 10-15-28			775		10
5.500%, 2-15-30			69		2
5.000%, 8-15-30			90		2
5.000%, 10-15-30			1,210		49
5.500%, 3-15-31			139		7
5.500%, 10-15-32			2,363		265
5.500%, 1-15-33			1,412		206
5.500%, 5-15-33			1,755		268
5.000%, 7-15-33			1,104		57
6.000%, 11-15-35			1,621		263

Federal National Mortgage Association Agency       REMIC/CMO (Interest Only): (K)
5.000%, 5-25-22		74		3
5.500%, 6-25-23		2,106		270
5.000%, 8-25-23		744		46
5.000%, 11-25-23		1,323		102
4.500%, 4-25-30		1,324		89
5.000%, 9-25-30		853		37
5.000%, 3-25-31		2,464		96
5.000%, 8-15-31		2,130		184
5.500%, 8-25-33		3,748		508
5.500%, 12-25-33		2,221		289
5.500%, 4-25-34		4,121		659
5.500%, 8-25-35		3,341		542
5.500%, 11-25-36		8,492		1,299
Government National Mortgage Association Agency       REMIC/CMO (Interest Only): (K)
5.000%, 1-20-30		241		7
5.000%, 6-20-31		332		19
5.500%, 3-20-32		1,604		175
5.000%, 10-20-32		1,685		260
7.000%, 5-20-33		4,018		964
5.500%, 7-16-33		1,977		325
5.000%, 7-20-33		78		7
5.500%, 11-20-33		444		49
5.500%, 6-20-35		3,967		594
5.500%, 7-20-35		1,691		266
5.500%, 7-20-35		572		41
5.500%, 10-16-35		3,872		639
(Cost: $16,565)			$	9,815
BULLION - 12.7%	Troy Ounces
Gold		2,208	$	2,890,068
(Cost: $2,075,912)
SHORT-TERM SECURITIES	Principal
Commercial Paper (L) - 5.5%
Avon Capital Corp. (Avon Products, Inc.):
0.220%, 10-4-10	$ 29,500			29,499
0.240%, 10-6-10		24,000		23,999
0.250%, 10-7-10		18,500		18,499
Bank of Nova Scotia,
0.190%, 11-1-10		83,888		83,873
Bemis Company, Inc.,
0.260%, 10-4-10		7,515		7,515
Clorox Co.,
0.350%, 10-20-10		12,000		11,998
Corporacion Andina de Fomento,
0.190%, 10-28-10		36,000		35,995
CVS Caremark Corporation,
0.350%, 10-20-10		20,000		19,996
E.I. du Pont de Nemours and Company,
0.190%, 10-18-10		85,000		84,991
General Mills, Inc.:
0.290%, 10-18-10		24,000		23,996
0.390%, 12-1-10		12,000		11,992
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.):
0.280%, 10-12-10		15,000		14,999
0.310%, 10-22-10		500		500

Hewlett-Packard Company:
0.150%, 10-4-10	104,101		104,098
0.170%, 10-6-10		11,690	11,690
IBM International Group Capital LLC (International Business       Machines Corporation),
0.000%, 10-1-10		2,750	2,750
Illinois Tool Works Inc.:
0.170%, 10-6-10		5,500	5,500
0.180%, 10-19-10		24,000	23,998
John Deere Credit Limited (John Deere Capital Corporation):
0.180%, 10-5-10		7,300	7,300
0.170%, 10-8-10		32,000	31,999
0.170%, 10-8-10		11,000	11,000
0.210%, 10-20-10		14,000	13,998
0.200%, 11-1-10		15,000	14,997
0.200%, 11-4-10		10,000	9,998
Kellogg Co.,
0.240%, 10-5-10		16,000	15,999
Nokia Corp.:
0.220%, 10-13-10		28,000	27,998
0.210%, 10-14-10		6,000	6,000
Novartis Finance Corp.,
0.000%, 10-1-10		44,412	44,412
PACCAR Financial Corp.,
0.170%, 10-6-10		4,400	4,400
Procter & Gamble International Funding S.C.A. (Procter &       Gamble Company (The)),
0.190%, 11-1-10		40,000	39,993
Prudential Funding LLC,
0.000%, 10-1-10		20,000	20,000
Societe Generale N.A. Inc.,
0.000%, 10-1-10		50,000	50,000
Straight-A Funding, LLC (Federal Financing Bank):
0.180%, 10-5-10		15,000	15,000
0.190%, 10-6-10		25,000	24,999
0.170%, 10-7-10		28,000	27,999
0.200%, 10-13-10		32,427	32,425
0.200%, 10-20-10		34,013	34,009
0.210%, 11-12-10		11,000	10,997
0.250%, 12-7-10		13,930	13,924
0.250%, 12-13-10		13,500	13,493
Toyota Motor Credit Corporation,
0.250%, 10-26-10		40,000	39,993
United Technologies Corporation,
0.180%, 10-28-10		33,254	33,249
Volkswagen of America Inc.:
0.000%, 10-1-10		23,475	23,475
0.320%, 10-6-10		25,000	24,999
0.350%, 10-13-10		6,520	6,519
0.380%, 10-18-10		1,035	1,035
0.370%, 10-19-10		7,945	7,943
0.380%, 10-27-10		6,025	6,023
W.W. Grainger, Inc.:
0.160%, 10-6-10		25,000	24,999
0.180%, 10-12-10		40,000	39,998
Wal-Mart Stores, Inc.:
0.200%, 10-25-10		25,000	24,997
0.190%, 10-27-10		30,000	29,996
			1,250,054
Master Note - 0.0%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (M)		7,123	7,123
Municipal Obligations - Taxable - 0.3%
CA Pollutn Ctl Fin Auth, Pollutn Ctl Rfdg Rev Bonds (Pacific       Gas and Elec Co), Ser C (JPMorgan Chase Bank, N.A),
0.290%, 10-1-10 (M)		13,180	13,180
CO Hlth Fac Auth, Var Rate Rev Bonds (Exempla, Inc.),       Ser 2009A (U.S. Bank, N.A.),
0.230%, 10-6-10 (M)		7,000	7,000
FL Muni Power Agy, All-Requirements Power Supply Proj       Var Rate Demand Rfdg Rev Bonds, Ser 2008C (Bank of       America, N.A.),
0.310%, 10-1-10 (M)		3,125	3,125
Indl Dev Auth of Phoenix, AZ, Adj Mode, Multifam Hsng Rev       Rfdg Bonds (Paradise Lakes Apartment Proj), Ser 2007A       (Wachovia Bank, N.A.),
0.260%, 10-1-10 (M)		15,925	15,925
MS Dev Bank, Var Rate Demand Rfdg Bonds (Harrison Cnty,       MS GO Coliseum and Convention Ctr Rfdg Bonds),       Ser 2010B (Bank of America, N.A.),
0.280%, 10-1-10 (M)		5,000	5,000
NJ Hlth Care Fac Fin Auth, Rev Bonds, AHS Hosp Corp       Issue, Ser 2008C (JPMorgan Chase & Co.),
0.250%, 10-7-10 (M)		9,500	9,500
NYC GO Bonds, Fiscal 2006 Ser E (Bank of America, N.A.),
0.270%, 10-1-10 (M)		9,000	9,000

Pennisula Ports Auth of VA, Coal Terminal Rev Rfdg Bonds       (Dominion Terminal Associates Proj), Ser 1987-A       (U.S. Bank, N.A.),
0.270%, 10-1-10	5,000		5,000
			67,730
Notes - 0.1%
Bank of America, N.A.,
0.763%, 10-22-10 (M)	1,000		1,000
Repurchase Agreements - 0.1%
J.P. Morgan Securities, Inc., Repurchase Agreement dated       9-30-10 to be repurchased at $22,682,
0.130%, 10-1-10 (N)	22,682		22,682
United States Government Agency Obligations - 0.1%
Overseas Private Investment Corporation:
0.240%, 10-15-10 (M)	5,000		5,000
0.200%, 11-15-10 (M)	10,156		10,156
0.200%, 11-15-10 (M)	10,000		10,000
0.230%, 12-15-10 (M)	2,353		2,353
0.240%, 12-15-10 (M)	12,316		12,316
			39,825
TOTAL SHORT-TERM SECURITIES - 6.1%		$	1,388,414
(Cost: $1,388,414)
TOTAL INVESTMENT SECURITIES - 100.5%		$	22,872,767
(Cost: $17,961,297)
LIABILITIES, NET OF CASH(C) AND OTHER ASSETS - (0.5%)			(103,957	)
NET ASSETS - 100.0%		$	22,768,810

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2010:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Buy	Chinese Yuan Renminbi	Deutsche Bank AG	3,735,000	6-25-12		$	––		$	1,993
Buy	Chinese Yuan Renminbi	Citibank, N.A.	1,036,201	6-28-12			524			––
Sell	Euro	Citibank, N.A.	312,200	12-20-10			––			40,116
Sell	Euro	Morgan Stanley International	471,310	3-24-11			––			60,847
Buy	Japanese Yen	Deutsche Bank AG	1,560,154	12-13-10			1,614			––
Buy	Norwegian Krone	Citibank, N.A.	5,015	10-20-10			19			––
Sell	Norwegian Krone	Bank of America NT & SA	1,242	10-20-10			––			5
						$	2,157		$	102,961

The following written options were outstanding at September 30, 2010:

Underlying Security	Counterparty	Contracts Subject to Put	Expiration Month	Exercise Price	Premium Received			Market Value
S&P 500 Index:	Morgan Stanley Smith Barney LLC	4	October 2010	$900.00		$	1,664		$	(42)
	Goldman, Sachs & Company	2	December 2010	900.00			2,027			(1,157)
	Morgan Stanley Smith Barney LLC	6	December 2010	900.00			3,491			(3,275)
	Morgan Stanley Smith Barney LLC	19	December 2010	950.00			16,363			(16,747)
						$	23,545		$	(21,221)

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

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

(C)Securities and cash serve as collateral for the following open futures contracts at September 30, 2010:

Description	Type	Expiration Date	Number of Contracts	Market Value			Unrealized Appreciation (Depreciation)
Taiwan Capitalization Weighted Stock Index	Short	10-20-10	6		$	(298,592)		$	(6,602)
MSCI Taiwan Index	Short	10-28-10	8			(231,956)			(1,628)
Hang Seng Index	Short	10-28-10	8			(1,158,724)			(888)
Hang Seng China Enterprises Index	Short	10-28-10	10			(765,914)			(4,440)
Korea Composite Stock Price Index	Short	12-10-10	4			(420,163)			(16,787)
FTSE 100 Index	Short	12-17-10	5			(475,747)			(1,149)
Dow Jones Euro STOXX 50 Index	Short	12-17-10	37			(1,392,217)			16,930
Russell 2000 Index	Short	12-17-10	19			(1,279,864)			(59,476)
DAX Index	Short	12-17-10	7			(1,592,282)			2,749
S&P 500 E-mini	Short	12-17-10	20			(1,116,694)			(20,045)
Nasdaq 100 E-mini	Short	12-17-10	32			(1,263,551)			(49,841)
					$	(9,995,704)		$	(141,177)

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $1,310,111 or 5.8% of net assets.

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

(F)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $202,668 or 0.9% of net assets.

(G)Illiquid restricted security. At September 30, 2010, the Fund owned the following restricted security:

Security	Acquisition Date(s)	Shares		Cost	Market Value
Vietnam Azalea Fund Limited	6-14-07 to 1-28-09	1,100	$	7,268		$	4,774
The total value of this security represented less than 0.05% of net assets at September 30, 2010.

(H)Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. The Fund and other mutual funds managed by its investment manager, Ivy Investment Management Company, or other related parties together own 30% of the outstanding shares of this security at September 30, 2010.

(I)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010.

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

(K)Amount shown as principal represents notional amount for computation of interest.

(L)Rate shown is the yield to maturity at September 30, 2010.

(M)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

(N)Collateralized by $23,145 United States Treasury Bill, 0.000% due 12-30-10; market value and accrued interest aggregate $23,136.

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

Country Diversification
(as a % of net assets)
United States	29.6%
China	14.9%
Brazil	4.5%
United Kingdom	4.2%
Germany	4.1%
South Korea	3.9%
India	3.2%
Hong Kong	2.4%
Taiwan	2.3%
Netherlands	2.1%
Switzerland	1.8%
Norway	1.7%
France	1.7%
Denmark	1.3%
Spain	1.1%
Sweden	0.6%
Turkey	0.5%
Other+	20.1%
+Includes gold bullion, options, warrants, cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Asset Strategy New Opportunities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	89.5%
Financials	21.1%
Consumer Discretionary	20.4%
Information Technology	13.2%
Industrials	12.0%
Consumer Staples	9.0%
Materials	7.1%
Energy	6.1%
Health Care	0.6%
Cash and Cash Equivalents	10.5%

Country Weightings

Pacific Basin	39.5%
China	9.9%
Turkey	6.6%
India	6.1%
South Korea	5.2%
Hong Kong	3.6%
Other Pacific Basin	8.1%
North America	8.3%
United States	7.6%
Other North America	0.7%
South America	17.7%
Brazil	17.7%
Other	16.9%
Egypt	8.8%
South Africa	5.8%
Other	2.3%
Europe	6.4%
Bahamas/Caribbean	0.7%
Cash and Cash Equivalents	10.5%

Top 10 Equity Holdings

Company	Country	Sector
MRV Engenharia e Participacoes S.A.	Brazil	Consumer Discretionary
Centamin Egypt Limited	Egypt	Materials
Kia Motors Corporation	South Korea	Consumer Discretionary
Naspers Limited, Class N	South Africa	Consumer Discretionary
Rossi Residencial S.A.	Brazil	Consumer Discretionary
MercadoLibre, Inc.	Brazil	Information Technology
Copa Holdings, S.A., Class A	Panama	Industrials
African Bank Investments Limited	South Africa	Financials
Turkiye Is Bankasi A.S.	Turkey	Financials
Yapi ve Kredi Bankasi A.S.	Turkey	Financials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Asset Strategy New Opportunities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,129.00	1.50%	$	6.49
Class B	$1,000	$1,125.00	2.37%	$	10.31
Class C	$1,000	$1,125.00	2.33%	$	10.20
Class E	$1,000	$1,129.00	1.50%	$	6.60
Class I	$1,000	$1,130.00	1.25%	$	5.43
Class R	$1,000	$1,127.00	1.95%	$	8.51
Class Y	$1,000	$1,129.00	1.50%	$	6.49
Based on 5% Return(2)
Class A	$1,000	$1,017.57	1.50%	$	7.57
Class B	$1,000	$1,013.21	2.37%	$	11.98
Class C	$1,000	$1,013.37	2.33%	$	11.78
Class E	$1,000	$1,017.57	1.50%	$	7.57
Class I	$1,000	$1,018.82	1.25%	$	6.36
Class R	$1,000	$1,015.30	1.95%	$	9.87
Class Y	$1,000	$1,017.57	1.50%	$	7.57

*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 the number of days in the period (150 days for the period Based on Actual Fund Return and 183 days for the period Based on 5% Return) ended September 30, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Asset Strategy New Opportunities Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Advertising - 1.6%
Focus Media Holding Limited, ADR (A)		72	$	1,750
Agricultural Products - 2.1%
Cosan S.A. Industria e Comercio, Class A		199		2,310
Air Freight & Logistics - 1.9%
GLOVIS Co., Ltd. (B)		16		2,143
Airlines - 2.3%
Copa Holdings, S.A., Class A		47		2,542
Apparel Retail - 1.1%
Belle International Holdings Limited (B)		239		480
Boshiwa International Holding Limited (A)(B)(C)		780		752
				1,232
Application Software - 2.2%
salesforce.com, inc. (A)		5		525
VanceInfo Technologies Inc., ADR (A)		61		1,963
				2,488
Auto Parts & Equipment - 0.9%
Minth Group Limited (B)		500		998
Automobile Manufacturers - 4.2%
Dongfeng Motor Group Company Limited, H Shares (B)		538		1,101
Ford Otomotiv Sanayi A.S. (B)		84		721
Kia Motors Corporation (B)		90		2,902
				4,724
Broadcasting - 0.7%
Sun TV Network Limited (B)		38		442
Zee Entertainment Enterprises Limited (B)		49		324
				766
Cable & Satellite - 2.5%
Naspers Limited, Class N (B)		57		2,772
Casinos & Gaming - 1.6%
SJM Holdings Limited (B)		1,537		1,755
Coal & Consumable Fuels - 2.7%
Alpha Natural Resources, Inc. (A)		41		1,687
Winsway Coking Coal Holdings Limited, H Shares (A)(B)(D)		3,000		1,431
				3,118
Communications Equipment - 2.9%
Acme Packet, Inc. (A)		51		1,916
Aruba Networks, Inc. (A)		30		649
F5 Networks, Inc. (A)		6		664
				3,229
Computer Hardware - 1.1%
High Tech Computer Corp. (B)		53		1,205
Construction & Engineering - 2.9%
Chicago Bridge & Iron Company N.V., NY Shares (A)		80		1,958
Orascom Construction Industries Company (OCI), GDR (B)		25		1,143
				3,101
Construction & Farm Machinery & Heavy Trucks - 2.6%
Bucyrus International, Inc., Class A		15		1,033
Jain Irrigation Systems Limited (B)		40		1,056
PT United Tractors Tbk (B)		352		807
				2,896
Construction Materials - 1.0%
PT Holcim Indonesia Tbk (A)(B)		3,948		1,073
Consumer Finance - 1.2%
Shriram Transport Finance Company Limited (B)		80		1,374
Diversified Banks - 9.1%
Bangkok Bank Public Company Limited (B)		171		879
Capitec Bank Holdings Limited (B)		56		1,200
Commercial International Bank (Egypt) S.A.E. (B)		71		536
PT Bank Mandiri (Persero) Tbk (B)		1,101		888
PT Bank Rakyat Indonesia (B)		726		813
Siam Commercial Bank Public CompanyLimited (The) (B)		218		743
Turkiye Is Bankasi A.S. (B)		586		2,491
Yapi ve Kredi Bankasi A.S. (A)(B)		713		2,466
				10,016
Education Services - 1.3%
Anhanguera Educacional Participacoes S.A. (B)		80		1,415
Food Retail - 3.5%
BIM Birlesik Magazalar Anonim Sirketi (B)		59		1,690
CP ALL plc (B)		475		661
Pyaterochka Holding N.V., GDR (A)(B)		38		1,524
				3,875
Gold - 3.3%
Alamos Gold Inc. (B)		43		738
Centamin Egypt Limited (A)(B)		1,058		2,942
				3,680
Health Care Services - 0.6%
Fleury S.A. (B)		54		669
Homebuilding - 5.0%
MRV Engenharia e Participacoes S.A. (B)		306		2,941
Rossi Residencial S.A. (B)		283		2,664
				5,605
Hotels, Resorts & Cruise Lines - 1.5%
COX AND KINGS (INDIA) LIMITED (B)		19		237
MakeMyTrip Limited (A)		38		1,463
				1,700
Industrial Conglomerates - 1.6%
Jaiprakash Associates Limited (B)		227		609
Walter Industries, Inc.		15		1,204
				1,813
Internet Software & Services - 4.5%
MercadoLibre, Inc. (A)		37		2,643
SINA Corporation (A)		46		2,337
				4,980
Investment Banking & Brokerage - 1.0%
EFG-Hermes Holding Company (B)		225		1,148
IT Consulting & Other Services - 1.8%
Camelot Information Systems Inc., ADR (A)		111		1,957
Life & Health Insurance - 0.8%
Amil Participacoes S.A. (B)		96		924
Oil & Gas Drilling - 0.8%
Pride International, Inc. (A)		29		848
Oil & Gas Exploration & Production - 2.6%
Cairn Energy plc (A)(B)		306		2,182
Cairn India Limited (A)(B)		91		678
				2,860
Other Diversified Financial Services - 2.2%
African Bank Investments Limited (B)		487		2,502
Packaged Foods & Meats - 2.0%
Perdigao S.A. (B)		150		2,281
Personal Products - 1.4%
Dabur India Limited (B)		181		436
Natura Cosmeticos S.A. (B)		42		1,132
				1,568
Real Estate Development - 4.3%
Asian Property Development Public Company Limited (B)		3,285		817
Evergrande Real Estate Group Limited (B)		1,286		434
Talaat Mostafa Group Holding (S.A.E.) (A)(B)		1,875		2,312
UEM Land Holdings Berhad (A)(B)		1,510		1,145
				4,708
Real Estate Management & Development - 1.5%
BR Properties S.A. (B)		170		1,637
Real Estate Operating Companies - 1.0%
BRMalls Participacoes S.A. (B)		139		1,149
Specialty Chemicals - 1.3%
Asian Paints Limited (B)		4		262
Novozymes A/S, Class B (B)		10		1,208
				1,470
Steel - 1.5%
Ezz Steel Company (An Egyptian Joint Stock Company) (A)(B)		506		1,711
Systems Software - 0.7%
ChinaCache International Holdings Ltd., ADR (A)		60		834
Trading Companies & Distributors - 0.7%
Samsung C&T Corporation (B)		15		829
TOTAL COMMON STOCKS - 89.5%			$	99,655
(Cost: $85,121)

SHORT-TERM SECURITIES	Principal
Commercial Paper (E) - 7.5%
Avon Capital Corp. (Avon Products, Inc.),	$ 3,000
0.240%, 10-6-10				3,000
Illinois Tool Works Inc.,
0.140%, 10-4-10		3,385		3,385
Sonoco Products Co.,
0.000%, 10-1-10		1,951		1,951
				8,336
Master Note - 2.0%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (F)		2,258		2,258
TOTAL SHORT-TERM SECURITIES - 9.5%			$	10,594
(Cost: $10,594)
TOTAL INVESTMENT SECURITIES - 99.0%			$	110,249
(Cost: $95,715)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.0%				1,123
NET ASSETS - 100.0%			$	111,372

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2010:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Sell	Japanese Yen	Morgan Stanley International	226,815	10-12-10		$	––		$	155
Buy	South Korean Won	Morgan Stanley International	3,108,500	10-12-10			163			––
						$	163		$	155

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

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

(C) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $752 or 0.7% of net assets.

(D) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $1,431 or 1.3% of net assets.

(E) Rate shown is the yield to maturity at September 30, 2010.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

Country Diversification
(as a % of net assets)
Brazil	17.7%
China	9.9%
Egypt	8.8%
United States	7.6%
Turkey	6.6%
India	6.1%
South Africa	5.8%
South Korea	5.2%
Hong Kong	3.6%
Indonesia	3.2%
Thailand	2.8%
Panama	2.3%
United Kingdom	2.0%
Netherlands	1.9%
Russia	1.4%
Denmark	1.1%
Taiwan	1.1%
Malaysia	1.0%
Cayman Islands	0.7%
Canada	0.7%
Other+	10.5%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Balanced Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	67.7%
Information Technology	14.5%
Consumer Discretionary	13.3%
Industrials	10.8%
Consumer Staples	9.1%
Energy	6.4%
Financials	6.2%
Health Care	4.8%
Materials	1.4%
Utilities	0.9%
Telecommunication Services	0.3%
Bonds	28.3%
Corporate Debt Securities	21.2%
United States Government and Government             Agency Obligations	6.4%
Other Government Securities	0.7%
Cash and Cash Equivalents	4.0%

Lipper Rankings

Category: Lipper Mixed-Asset Target       Allocation Growth Funds	Rank	Percentile
1 Year	229/561	41
3 Year	27/498	6
5 Year	12/407	3
10 Year	151/202	75

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Apple Inc.	Information Technology
Emerson Electric Co.	Industrials
Microchip Technology Incorporated	Information Technology
JPMorgan Chase & Co.	Financials
Colgate-Palmolive Company	Consumer Staples
ConocoPhillips	Energy
Union Pacific Corporation	Industrials
PepsiCo, Inc.	Consumer Staples
Expeditors International of Washington, Inc.	Industrials
Manpower Inc.	Industrials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Balanced Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10			Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000		$	1,000.90	1.32%	$	6.60
Class B	$1,000		$	996.90	2.13%	$	10.68
Class C	$1,000		$	997.60	1.93%	$	9.69
Class E**	$1,000		$	1,001.60	1.11%	$	5.50
Class I	$1,000		$	1,002.80	0.99%	$	5.01
Class Y	$1,000		$	1,001.40	1.23%	$	6.20
Based on 5% Return(2)
Class A	$1,000		$	1,018.43	1.32%	$	6.66
Class B	$1,000		$	1,014.40	2.13%	$	10.78
Class C	$1,000		$	1,015.41	1.93%	$	9.77
Class E**	$1,000		$	1,019.52	1.11%	$	5.55
Class I	$1,000		$	1,020.11	0.99%	$	5.05
Class Y	$1,000		$	1,018.89	1.23%	$	6.26

* 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, 2010, and divided by 365.

** Class closed to investment.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund(in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS		Shares			Value
Aerospace & Defense - 1.3%
Honeywell International Inc.			55	$	2,434
Air Freight & Logistics - 1.5%
Expeditors International of Washington, Inc.			61		2,829
Application Software - 0.5%
Autodesk, Inc. (A)			28		879
Auto Parts & Equipment - 2.3%
BorgWarner Inc. (A)			46		2,443
Johnson Controls, Inc.			63		1,915
					4,358
Automobile Manufacturers - 0.7%
Ford Motor Company (A)			104		1,273
Broadcasting - 1.4%
CBS Corporation, Class B			160		2,533
Casinos & Gaming - 1.1%
Wynn Resorts, Limited			24		2,091
Communications Equipment - 1.4%
Cisco Systems, Inc. (A)			120		2,628
Computer Hardware - 4.0%
Apple Inc. (A)			19		5,278
Hewlett-Packard Company			52		2,188
					7,466
Construction & Engineering - 1.1%
Quanta Services, Inc. (A)			103		1,961
Construction & Farm Machinery & Heavy Trucks - 0.4%
Cummins Inc.			9		797
Data Processing & Outsourced Services - 1.1%
Paychex, Inc.			71		1,949
Department Stores - 1.2%
Macy's Inc.			97		2,242
Distillers & Vintners - 1.3%
Brown-Forman Corporation, Class B			39		2,419
Diversified Chemicals - 1.4%
Dow Chemical Company (The)			91		2,504
Electric Utilities - 0.9%
PPL Corporation			64		1,740
Electrical Components & Equipment - 3.1%
Emerson Electric Co.			81		4,261
First Solar, Inc. (A)			9		1,252
					5,513
Footwear - 1.4%
NIKE, Inc., Class B			31		2,516
General Merchandise Stores - 1.4%
Target Corporation			48		2,565
Health Care Distributors - 1.2%
Henry Schein, Inc. (A)			37		2,185
Health Care Supplies - 1.2%
DENTSPLY International Inc.			71		2,267
Hotels, Resorts & Cruise Lines - 2.0%
Carnival Corporation			35		1,345
Hyatt Hotels Corporation, Class A (A)			65		2,427
					3,772
Household Products - 1.9%
Colgate-Palmolive Company			44		3,405
Human Resource & Employment Services - 1.5%
Manpower Inc.			54		2,824
Industrial Machinery - 1.0%
Eaton Corporation			23		1,873
Integrated Oil & Gas - 1.7%
ConocoPhillips			55		3,159
Integrated Telecommunication Services - 0.3%
Frontier Communications Corporation			75		613
IT Consulting & Other Services - 1.4%
Accenture plc, Class A			63		2,656
Motorcycle Manufacturers - 0.8%
Harley-Davidson, Inc.			50		1,413
Oil & Gas Equipment & Services - 3.8%
Halliburton Company			66		2,192
National Oilwell Varco, Inc.			62		2,761
Schlumberger Limited			35		2,132
					7,085
Oil & Gas Exploration & Production - 0.9%
Southwestern Energy Company (A)			47		1,572
Other Diversified Financial Services - 3.5%
Bank of America Corporation			186		2,440
JPMorgan Chase & Co.			103		3,910
					6,350
Personal Products - 3.0%
Estee Lauder Companies Inc. (The), Class A			43		2,731
Mead Johnson Nutrition Company			47		2,692
					5,423
Pharmaceuticals - 2.4%
Abbott Laboratories			32		1,687
Allergan, Inc.			41		2,708
					4,395
Property & Casualty Insurance - 1.4%
Travelers Companies, Inc. (The)			51		2,652
Railroads - 1.6%
Union Pacific Corporation			36		2,912
Real Estate Management & Development - 1.3%
CB Richard Ellis Group, Inc., Class A (A)			133		2,422
Restaurants - 1.0%
McDonald's Corporation			24		1,818
Semiconductor Equipment - 0.9%
ASML Holding N.V., NY Registry Shares			58		1,715
Semiconductors - 3.4%
Microchip Technology Incorporated			128		4,032
Texas Instruments Incorporated			82		2,223
					6,255
Soft Drinks - 1.5%
PepsiCo, Inc.			43		2,857
Systems Software - 1.1%
Microsoft Corporation			81		1,975
Tobacco - 1.4%
Philip Morris International Inc.			47		2,605
TOTAL COMMON STOCKS - 67.7%				$	124,900
(Cost: $100,064)
CORPORATE DEBT SECURITIES	Principal
Airlines - 0.3%
Southwest Airlines Co.,
6.500%, 3-1-12	$ 500				530
Auto Parts & Equipment - 0.6%
BorgWarner Inc.,
4.625%, 9-15-20	1,000				1,016
Automobile Manufacturers - 0.7%
Ford Motor Company, Convertible,
4.250%, 11-15-16	1,000				1,492
Brewers - 1.0%
Anheuser-Busch InBev Worldwide Inc.:
3.000%, 10-15-12	500				519
5.375%, 11-15-14 (B)	1,000				1,123
					1,642
Broadcasting - 0.4%
CBS Corporation,
8.875%, 5-15-19			500		652
Communications Equipment - 0.6%
Cisco Systems, Inc.,
5.250%, 2-22-11	1,000				1,018
Construction & Farm Machinery & Heavy Trucks - 0.3%
John Deere Capital Corporation,
5.250%, 10-1-12	500				543

Consumer Finance - 0.6%
American Express Credit Corporation,
5.125%, 8-25-14	200		222
Ford Motor Credit Company LLC,
7.000%, 4-15-15	750		801
			1,023
Data Processing & Outsourced Services - 0.6%
Western Union Company (The),
6.500%, 2-26-14	1,000		1,149
Department Stores - 0.6%
Kohl's Corporation,
6.300%, 3-1-11	1,000		1,020
Diversified Banks - 0.6%
U.S. Bancorp,
4.200%, 5-15-14	1,000		1,096
Diversified Capital Markets - 0.3%
Deutsche Bank AG,
3.450%, 3-30-15	500		527
Diversified Metals & Mining - 0.3%
Rio Tinto Finance (USA) Limited,
8.950%, 5-1-14	500		617
Drug Retail - 0.3%
CVS Caremark Corporation,
3.250%, 5-18-15	550		575
Electric Utilities - 0.3%
Hydro-Quebec,
8.000%, 2-1-13	500		581
Food Distributors - 0.2%
Cargill, Inc.,
6.375%, 6-1-12 (B)	400		433
Food Retail - 0.6%
Kroger Co. (The),
6.200%, 6-15-12	1,000		1,086
Gold - 1.0%
Newmont Mining Corporation, Convertible,
3.000%, 2-15-12	1,200		1,709
Home Improvement Retail - 0.6%
Home Depot, Inc. (The),
5.200%, 3-1-11	1,000		1,019
Hypermarkets & Super Centers - 0.1%
Wal-Mart Stores, Inc.,
2.875%, 4-1-15	250		265
Industrial Conglomerates - 0.1%
Textron Inc.,
6.200%, 3-15-15	150		167
Industrial Gases - 0.6%
Praxair, Inc.,
4.375%, 3-31-14	1,000		1,100
Industrial Machinery - 0.6%
Illinois Tool Works Inc.,
5.150%, 4-1-14	1,000		1,135
Integrated Oil & Gas - 1.0%
Cenovus Energy Inc.,
4.500%, 9-15-14	250		275
Chevron Corporation,
3.450%, 3-3-12	500		519
ConocoPhillips,
4.750%, 2-1-14	1,000		1,115
			1,909
Integrated Telecommunication Services - 0.6%
AT&T Inc.,
4.850%, 2-15-14	1,000		1,107
Investment Banking & Brokerage - 0.3%
Morgan Stanley,
4.100%, 1-26-15	500		517
Life & Health Insurance - 1.6%
MetLife Global Funding I,
2.500%, 9-29-15 (C)	2,500		2,507
Prudential Financial, Inc.,
4.750%, 9-17-15	500		541
			3,048
Movies & Entertainment - 0.3%
Viacom Inc.,
4.375%, 9-15-14	500		543
Multi-Utilities - 0.4%
Duke Energy Carolinas, LLC,
4.300%, 6-15-20	575		634
Oil & Gas Exploration & Production - 0.3%
XTO Energy Inc.,
7.500%, 4-15-12	500		551
Other Diversified Financial Services - 0.9%
JPMorgan Chase & Co.:
4.650%, 6-1-14	1,000		1,095
7.900%, 4-29-49 (D)	500		536
			1,631
Other Non-Agency REMIC/CMO - 0.0%
Banco Hipotecario Nacional:
7.916%, 7-25-09 (C)	7		––	*
8.000%, 3-31-11 (C)	1		––	*
			––	*
Packaged Foods & Meats - 0.5%
Kellogg Company,
4.450%, 5-30-16	500		562
Unilever Capital Corporation,
5.900%, 11-15-32	350		421
			983
Pharmaceuticals - 1.7%
Abbott Laboratories,
3.750%, 3-15-11	1,000		1,015
Pfizer Inc.,
4.450%, 3-15-12	1,000		1,053
Roche Holdings Ltd,
5.000%, 3-1-14 (B)	1,000		1,118
			3,186
Property & Casualty Insurance - 0.9%
Berkshire Hathaway Finance Corporation,
4.000%, 4-15-12 (B)	1,000		1,049
Fidelity National Financial, Inc.,
6.600%, 5-15-17	800		826
			1,875
Restaurants - 0.1%
YUM! Brands, Inc.,
4.250%, 9-15-15	250		273
Soft Drinks - 0.3%
PepsiCo, Inc.,
3.750%, 3-1-14	500		541
Systems Software - 0.3%
Microsoft Corporation,
2.950%, 6-1-14	500		530
Tobacco - 0.3%
Philip Morris International Inc.,
4.500%, 3-26-20	500		545
Wireless Telecommunication Service - 0.4%
America Movil, S.A.B. de C.V.,
3.625%, 3-30-15	200		208
American Tower Corporation,
4.625%, 4-1-15	500		534
			742
TOTAL CORPORATE DEBT SECURITIES - 21.2%		$	39,010
(Cost: $35,592)
OTHER GOVERNMENT SECURITIES
Qatar - 0.4%
State of Qatar,
4.000%, 1-20-15 (B)	750		791
Supranational - 0.3%
International Bank for Reconstruction and Development,
2.375%, 5-26-15	450		471
TOTAL OTHER GOVERNMENT SECURITIES - 0.7%		$	1,262
(Cost: $1,197)

UNITED STATES GOVERNMENT AGENCY       OBLIGATIONS - 1.4%
Mortgage-Backed Obligations
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
6.000%, 9-1-17	191		208
5.000%, 1-1-18	202		215
5.500%, 4-1-18	89		97
6.500%, 10-1-28	101		114
6.500%, 2-1-29	17		19
7.000%, 5-1-31	17		19
7.500%, 5-1-31	17		20
7.000%, 7-1-31	28		32
7.000%, 9-1-31	37		42
7.000%, 9-1-31	25		29
7.000%, 11-1-31	95		109
6.500%, 2-1-32	102		114
7.000%, 2-1-32	100		113
7.000%, 2-1-32	54		61
6.500%, 3-1-32	20		23
7.000%, 3-1-32	63		71
7.000%, 6-1-32	21		23
7.000%, 7-1-32	105		119
6.500%, 8-1-32	43		48
6.000%, 9-1-32	399		440
6.500%, 9-1-32	89		99
5.500%, 5-1-33	170		183
5.500%, 5-1-33	85		91
5.500%, 5-1-33	72		77
5.500%, 6-1-33	156		168
(Cost: $2,354)		$	2,534
UNITED STATES GOVERNMENT OBLIGATIONS - 5.0%
Treasury Obligations
United States Treasury Bonds,
7.500%, 11-15-16	500		670
United States Treasury Notes:
4.250%, 10-15-10	2,000		2,003
3.875%, 2-15-13	1,250		1,351
3.625%, 5-15-13	750		812
4.250%, 8-15-13	900		994
4.250%, 8-15-15	3,000		3,429
(Cost: $8,427)		$	9,259
SHORT-TERM SECURITIES - 2.8%
Master Note
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (E)	5,223	$	5,223
(Cost: $5,223)
TOTAL INVESTMENT SECURITIES - 98.8%		$	182,188
(Cost: $152,857)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.2%			2,186
NET ASSETS - 100.0%		$	184,374

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $4,514 or 2.4% of net assets.

(C) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $2,507 or 1.4% of net assets.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010.

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Energy Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	98.0%
Energy	86.1%
Industrials	6.8%
Utilities	2.3%
Materials	1.6%
Information Technology	1.2%
Cash and Cash Equivalents	2.0%

Lipper Rankings

Category: Lipper Natural Resources Funds	Rank	Percentile
1 Year	21/72	29
3 Year	13/70	19

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

North America	86.0%
United States	79.9%
Canada	6.1%
Europe	6.5%
Pacific Basin	3.0%
Bahamas/Caribbean	2.5%
Cash and Cash Equivalents	2.0%

Top 10 Equity Holdings

Company	Sector	Industry
Schlumberger Limited	Energy	Oil & Gas Equipment & Services
Halliburton Company	Energy	Oil & Gas Equipment & Services
National Oilwell Varco, Inc.	Energy	Oil & Gas Equipment & Services
Apache Corporation	Energy	Oil & Gas Exploration & Production
Newfield Exploration Company	Energy	Oil & Gas Exploration & Production
Southwestern Energy Company	Energy	Oil & Gas Exploration & Production
Noble Energy, Inc.	Energy	Oil & Gas Exploration & Production
Cameron International Corporation	Energy	Oil & Gas Equipment & Services
Continental Resources, Inc.	Energy	Oil & Gas Exploration & Production
Anadarko Petroleum Corporation	Energy	Oil & Gas Exploration & Production

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Energy Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10			Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000		$	990.10	1.60%	$	7.96
Class B	$1,000		$	985.10	2.58%	$	12.90
Class C	$1,000		$	987.10	2.37%	$	11.82
Class E**	$1,000		$	991.90	1.36%	$	6.77
Class I	$1,000		$	992.00	1.25%	$	6.27
Class Y	$1,000		$	990.10	1.52%	$	7.56
Based on 5% Return(2)
Class A	$1,000		$	1,017.04	1.60%	$	8.07
Class B	$1,000		$	1,012.11	2.58%	$	13.08
Class C	$1,000		$	1,013.21	2.37%	$	11.98
Class E**	$1,000		$	1,018.25	1.36%	$	6.86
Class I	$1,000		$	1,018.80	1.25%	$	6.36
Class Y	$1,000		$	1,017.46	1.52%	$	7.67

*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, 2010, and divided by 365.

**Class closed to investment.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Energy Fund(in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS		Shares		Value
Coal & Consumable Fuels - 4.9%
Alpha Natural Resources, Inc. (A)			16	$	647
Arch Coal, Inc.			41		1,094
Cameco Corporation			15		428
CONSOL Energy Inc.			19		687
Peabody Energy Corporation			31		1,501
					4,357
Construction & Engineering - 4.7%
Chicago Bridge & Iron Company N.V., NY Shares (A)			41		995
Fluor Corporation			42		2,071
Jacobs Engineering Group Inc. (A)			29		1,138
					4,204
Construction & Farm Machinery & Heavy Trucks - 2.1%
Bucyrus International, Inc., Class A			28		1,924
Diversified Metals & Mining - 1.6%
BHP Billiton Limited, ADR			19		1,462
Electric Utilities - 2.3%
Entergy Corporation			16		1,226
Exelon Corporation			20		868
					2,094
Electrical Components & Equipment - 1.2%
First Solar, Inc. (A)			7		1,090
Integrated Oil & Gas - 9.9%
ConocoPhillips			34		1,935
Exxon Mobil Corporation			37		2,286
Marathon Oil Corporation			25		816
Occidental Petroleum Corporation			32		2,497
Suncor Energy Inc.			41		1,318
					8,852
Oil & Gas Drilling - 10.5%
ENSCO International Incorporated			25		1,135
Helmerich & Payne, Inc.			56		2,251
Nabors Industries Ltd. (A)			71		1,280
Oasis Petroleum LLC (A)			82		1,580
Seadrill Limited			36		1,029
Transocean Inc. (A)			34		2,179
					9,454
Oil & Gas Equipment & Services - 26.5%
Baker Hughes Incorporated			48		2,057
Cameron International Corporation (A)			61		2,610
Core Laboratories N.V.			16		1,417
FMC Technologies, Inc. (A)			27		1,827
Halliburton Company			123		4,059
National Oilwell Varco, Inc.			74		3,302
Schlumberger Limited			68		4,181
Superior Energy Services, Inc. (A)			46		1,217
Tenaris S.A., ADR			59		2,248
Weatherford International Ltd. (A)			51		865
					23,783
Oil & Gas Exploration & Production - 27.1%
Anadarko Petroleum Corporation			45		2,549
Apache Corporation			32		3,083
Cabot Oil & Gas Corporation			25		757
CNOOC Limited, ADR			6		1,244
Continental Resources, Inc. (A)			56		2,589
Devon Energy Corporation			28		1,808
EOG Resources, Inc.			22		2,017
Newfield Exploration Company (A)			53		3,038
Noble Energy, Inc.			35		2,619
Southwestern Energy Company (A)			85		2,831
Ultra Petroleum Corp. (A)			40		1,667
					24,202
Oil & Gas Refining & Marketing - 0.8%
Clean Energy Fuels Corp. (A)			48		683
Oil & Gas Storage & Transportation - 6.4%
El Paso Corporation			126		1,562
El Paso Pipeline Partners, L.P.			46		1,461
Enbridge Inc.			37		1,924
Williams Companies, Inc. (The)			42		796
					5,743
TOTAL COMMON STOCKS - 98.0%				$	87,848
(Cost: $69,809)
SHORT-TERM SECURITIES - 1.8%	Principal
Master Note
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (B)	$1,644			$	1,644
(Cost: $1,644)
TOTAL INVESTMENT SECURITIES - 99.8%				$	89,492
(Cost: $71,453)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.2%					180
NET ASSETS - 100.0%				$	89,672

Notes to Schedule of Investments

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

Country Diversification
(as a % of net assets)
United States	79.9%
Canada	6.1%
Netherlands	2.7%
Bermuda	2.5%
Luxembourg	2.5%
Australia	1.6%
Hong Kong	1.4%
United Kingdom	1.3%
Other+	2.0%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Global Natural Resources Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	93.8%
Energy	45.9%
Materials	36.0%
Utilities	4.2%
Industrials	3.5%
Information Technology	3.3%
Consumer Staples	0.6%
Financials	0.3%
Options	5.1%
Bonds	0.1%
Corporate Debt Securities	0.1%
Cash and Cash Equivalents	1.0%

Lipper Rankings

Category: Lipper Global Natural Resources Funds	Rank	Percentile
1 Year	71/123	58
3 Year	70/86	81
5 Year	27/51	52
10 Year	14/32	43

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

North America	53.1%
United States	38.5%
Canada	14.6%
Europe	20.9%
United Kingdom	12.7%
Russia	6.0%
Other Europe	2.2%
Pacific Basin	11.2%
China	4.4%
Other Pacific Basin	6.8%
South America	6.9%
Brazil	6.6%
Other South America	0.3%
Other	1.2%
Bahamas/Caribbean	0.6%
Cash and Cash Equivalents and Options	6.1%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Xstrata plc	United Kingdom	Materials	Diversified Metals & Mining
Alpha Natural Resources, Inc.	United States	Energy	Coal & Consumable Fuels
Halliburton Company	United States	Energy	Oil & Gas Equipment & Services
Canadian Natural Resources       Limited	Canada	Energy	Oil & Gas Exploration & Production
El Paso Corporation	United States	Energy	Oil & Gas Storage & Transportation
Randgold Resources Limited,       ADR	United Kingdom	Materials	Gold
Petrohawk Energy Corporation	United States	Energy	Oil & Gas Exploration & Production
Open Joint Stock Company       Gazprom, ADR	Russia	Energy	Integrated Oil & Gas
Cabot Oil & Gas Corporation	United States	Energy	Oil & Gas Exploration & Production
Occidental Petroleum       Corporation	United States	Energy	Integrated Oil & Gas

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Global Natural Resources Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10			Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000		$	957.50	1.44%	$	7.05
Class B	$1,000		$	953.50	2.27%	$	11.13
Class C	$1,000		$	953.80	2.12%	$	10.36
Class E	$1,000		$	958.40	1.27%	$	6.27
Class I	$1,000		$	959.30	1.04%	$	5.09
Class R	$1,000		$	956.70	1.57%	$	7.73
Class Y	$1,000		$	958.50	1.20%	$	5.88
Based on 5% Return(2)
Class A	$1,000		$	1,017.85	1.44%	$	7.26
Class B	$1,000		$	1,013.68	2.27%	$	11.48
Class C	$1,000		$	1,014.44	2.12%	$	10.68
Class E	$1,000		$	1,018.70	1.27%	$	6.46
Class I	$1,000		$	1,019.86	1.04%	$	5.25
Class R	$1,000		$	1,017.21	1.57%	$	7.97
Class Y	$1,000		$	1,019.05	1.20%	$	6.06

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Global Natural Resources Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS		Shares		Value
Brazil - 5.3%
Companhia de Saneamento de Minas Gerais (A)			4,000	$	61,182
Companhia Energetica de Minas Gerais - CEMIG, ADR			3,000		49,170
Companhia Vale de Rio Doce, ADR			750		23,453
Petroleo Brasileiro S.A. - Petrobras, ADR			290		10,518
Suzano Bahia Sul Papel E Celulose S.A. (A)			11,188		105,593
Tractebel Energia S.A. (A)			1,850		27,663
					277,579
Canada - 14.6%
Advantage Oil & Gas Ltd. (A)(B)			1,500		9,476
Agnico-Eagle Mines Limited			96		6,826
Barrick Gold Corporation			1,000		46,290
Canadian Natural Resources Limited (A)			5,000		172,952
Canadian Oil Sands Trust (A)			500		12,372
Cenovus Energy Inc. (A)			710		20,430
First Quantum Minerals Ltd. (A)			1,500		114,078
Goldcorp Inc.			2,000		87,040
Lundin Mining Corporation (A)(B)			1,539		7,686
MEG Energy Corp. (A)(B)			91		3,178
MGM Energy Corp. (A)(B)			7,102		1,518
Migao Corporation (A)(B)(C)			1,550		9,943
Migao Corporation (A)(B)			140		900
Neo Material Technologies Inc. (A)(B)			850		4,065
Potash Corporation of Saskatchewan Inc.			850		122,434
Suncor Energy Inc. (A)			1,500		48,839
Teck Cominco Limited (A)			2,250		92,545
					760,572
Cayman Islands - 0.6%
China High Speed Transmission Equipment Group Co., Ltd. (A)			14,000		30,386
Chile - 0.3%
Sociedad Quimica y Minera de Chile S.A., ADR			325		15,678
China - 4.4%
GCL-Poly Energy Holdings Limited (A)			22,258		6,856
Sino-Forest Corporation, Class A (A)(B)			3,599		59,959
Trina Solar Limited, ADR (B)			2,000		60,360
Yingli Green Energy Holding Company Limited, ADR (B)			7,250		100,341
					227,516
Cyprus - 0.1%
Buried Hill Energy (Cyprus) Public Company Limited (A)(B)(D)			3,630		7,260
Germany - 0.1%
Phoenix Solar AG, Sulzemoos (A)			150		5,378
Hong Kong - 0.3%
China Longyuan Power Group Corporation Limited,       H Shares (A)(B)			5,000		4,962
Guangdong Investment Limited (A)			22,000		11,484
					16,446
Indonesia - 1.8%
PT Adaro Energy Tbk (A)			75,000		17,017
PT Bumi Resources Tbk (A)		175,000			41,667
PT Indo Tambangraya Megah Tbk (A)			1,000		4,661
PT Tambang Batubara Bukit Asam (Persero) Tbk (A)			15,000		32,689
					96,034
Israel - 1.2%
Israel Chemicals Ltd. (A)			4,250		59,951
Japan - 1.6%
Mitsubishi Corporation (A)			3,500		83,056
Netherlands - 0.3%
Chicago Bridge & Iron Company N.V., NY Shares (B)			600		14,670
Norway - 1.4%
Seadrill Limited (A)			2,500		72,222
Russia - 6.0%
Mechel Steel Group OAO, ADR			4,750		118,275
Open Joint Stock Company "RusHydro", ADR (A)(B)			3,000		15,450
Open Joint Stock Company Gazprom, ADR (A)			6,500		136,435
Uralkali Group, GDR (A)			2,000		43,900
					314,060
Singapore - 1.3%
Golden Agri-Resources Ltd. (A)			35,000		15,170
Indofood Agri Resources Ltd. (A)(B)			10,000		17,185
Straits Asia Resources Limited (A)			20,000		33,457
					65,812
South Korea - 0.8%
LG Chem, Ltd. (A)			150		43,872
Switzerland - 0.3%
Noble Corporation			500		16,895
Thailand - 1.0%
Banpu Public Company Limited (A)			2,250		53,081
United Kingdom - 12.7%
Antofagasta plc (A)			4,250		82,519
Eurasian Natural Resources Corporation plc (A)			1,000		14,429
Kazakhmys plc (A)			750		17,107
Randgold Resources Limited, ADR			1,500		152,190
Rio Tinto plc (A)			2,000		116,906
Xstrata plc (A)			14,500		277,435
					660,586
United States - 38.3%
Allegheny Technologies Incorporated			500		23,225
Alpha Natural Resources, Inc. (B)(E)			6,500		267,474
Arch Coal, Inc.			200		5,342
Brigham Exploration Company (B)			100		1,875
Cabot Oil & Gas Corporation			4,500		135,495
Cameron International Corporation (B)			2,000		85,920
Celanese Corporation, Series A			2,750		88,275
Chesapeake Energy Corporation (F)			3,500		79,275
Cleveland-Cliffs Inc			225		14,382
CONSOL Energy Inc.			2,250		83,160
El Paso Corporation			13,000		160,940
EXCO Resources, Inc.			5,500		81,785
Freeport-McMoRan Copper & Gold Inc., Class B			250		21,347
GrafTech International Ltd. (B)			3,000		46,890
Halliburton Company (F)			5,250		173,618
Kodiak Oil & Gas Corp. (B)			2,000		6,780
Molycorp, Inc. (B)			10		283
Newfield Exploration Company (B)			250		14,360
Oasis Petroleum LLC (B)			1,000		19,370
Occidental Petroleum Corporation (F)			1,650		129,195
Owens-Illinois, Inc. (B)			2,500		70,150
Peabody Energy Corporation			500		24,505
Petrohawk Energy Corporation (B)			9,000		145,259
Pioneer Natural Resources Company			150		9,755
Plains Exploration and Production Company (B)			1,000		26,670
Rock-Tenn Company, Class A			600		29,886
Schlumberger Limited (F)			1,500		92,415
Southwestern Energy Company (B)			750		25,080
St. Mary Land & Exploration Company			250		9,365
Williams Companies, Inc. (The)			6,000		114,660
					1,986,736
TOTAL COMMON STOCKS - 92.4%				$	4,807,790
(Cost: $3,987,732)
PREFERRED STOCKS
Brazil - 1.2%
Bradespar S.A. (A)			750		17,881
Companhia Energetica de Minas Gerais - CEMIG (A)			2,500		40,633
					58,514
United States - 0.2%
Konarka Technologies, Inc., 8.0% Cumulative (B)(D)			3,500		12,565
TOTAL PREFERRED STOCKS - 1.4%				$	71,079
(Cost: $50,068)
CALL OPTIONS	Number of Contracts
Barrick Gold Corporation,
Jan $30.00, Expires 1-24-11			50		80,750
Canadian Natural Resources Limited,
Jan $25.00, Expires 1-24-11			25		25,125
El Paso Corporation,
Jan $5.00, Expires 1-24-11			60		45,000
Exxon Mobil Corporation,
Jan $40.00, Expires 1-24-11			7		15,243
Occidental Petroleum Corporation,
Jan $60.00, Expires 1-24-11			35		66,762
Williams Companies, Inc. (The),
Jan $15.00, Expires 1-24-11			80		35,000
TOTAL CALL OPTIONS - 5.1%				$	267,880
(Cost: $244,197)

CORPORATE DEBT SECURITIES - 0.1%	Principal
Brazil
Bahia Sul Celulose S.A.,
8.614%, 12-1-12 (C)(G)(H)	BRL10,692			$	5,833
(Cost: $5,027)
SHORT-TERM SECURITIES
Commercial Paper (I) - 0.3%
E.I. du Pont de Nemours and Company,
0.190%, 10-18-10		$	3,000		3,000
Hewlett-Packard Company,
0.150%, 10-4-10			10,000		10,000
					13,000
Commercial Paper (backed by irrevocable bank letter of credit) (I) - 0.1%
COFCO Capital Corp. (Rabobank Nederland),
0.280%, 10-20-10			4,500		4,499
Master Note - 0.0%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (J)			1,034		1,034
TOTAL SHORT-TERM SECURITIES - 0.4%				$	18,533
(Cost: $18,533)
TOTAL INVESTMENT SECURITIES - 99.4%				$	5,171,115
(Cost: $4,305,557)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.6%					30,936
NET ASSETS - 100.0%				$	5,202,051

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2010:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Sell	Brazilian Real	Toronto-Dominion Bank (The)	51,300	10-22-10		$	––	$ 1,763
Sell	Brazilian Real	Toronto-Dominion Bank (The)	86,000	12-3-10			––	2,254
Sell	Brazilian Real	Mellon Bank N.A.	70,100	12-17-10			––	798
Sell	British Pound	Royal Bank of Canada	124,725	10-22-10			––	5,730
Sell	British Pound	Mellon Bank N.A.	53,500	10-29-10			––	1,302
Sell	British Pound	Toronto-Dominion Bank (The)	38,300	11-19-10			138	––
Sell	British Pound	Toronto-Dominion Bank (The)	31,400	11-19-10			––	331
Sell	British Pound	Mellon Bank N.A.	70,400	12-3-10			––	2,577
Sell	Canadian Dollar	Toronto-Dominion Bank (The)	94,700	10-29-10			––	690
Sell	Canadian Dollar	Mellon Bank N.A.	88,400	12-17-10			163	––
Sell	Canadian Dollar	Mellon Bank N.A.	34,400	1-14-11			81	––
Sell	Canadian Dollar	Mellon Bank N.A.	66,500	1-14-11			––	386
Sell	Euro	Toronto-Dominion Bank (The)	4,085	10-22-10			––	309
Sell	Japanese Yen	Mellon Bank N.A.	2,350,000	10-6-10			––	1,088
Sell	Japanese Yen	Mellon Bank N.A.	1,839,900	10-27-10			––	838
Sell	Japanese Yen	Mellon Bank N.A.	1,030,000	12-1-10			––	187
Sell	Japanese Yen	Toronto-Dominion Bank (The)	1,500,000	12-15-10			––	120
						$	382	$18,373

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

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

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $15,776 or 0.3% of net assets.

(D)Illiquid restricted securities. At September 30, 2010, the Fund owned the following restricted securities:

Security	Acquisition Date(s)	Shares		Cost	Market Value
Buried Hill Energy (Cyprus) Public Company Limited	5-1-07 to 4-17-08	3,630	$	6,183	$ 7,260
Konarka Technologies, Inc., 8.0% Cumulative	8-31-07	3,500		10,850	12,565
			$	17,033	$19,825
The total value of these securities represented 0.4% of net assets at September 30, 2010.

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

(F)Securities serve as collateral for the following open futures contracts at September 30, 2010:

Description	Type	Expiration Date	Number of Contracts		Market Value	Unrealized Depreciation
S&P/Toronto Stock Exchange 60 Index	Short	12-16-10	1	$	(138,556)	$(1,577)
S&P 500 E-mini	Short	12-17-10	10		(568,350)	(4,203)
				$	(706,906)	$(5,780)

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

(H)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010.

(I)Rate shown is the yield to maturity at September 30, 2010.

(J)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date the variable rate resets.

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

Market Sector Diversification
(as a % of net assets)
Energy	45.9%
Materials	36.1%
Utilities	4.2%
Industrials	3.5%
Information Technology	3.3%
Consumer Staples	0.6%
Financials	0.3%
Other+	6.1%
+Includes options, cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Real Estate Securities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	94.1%
Financials	90.7%
Consumer Discretionary	2.4%
Health Care	0.7%
Telecommunication Services	0.3%
Cash and Cash Equivalents	5.9%

Lipper Rankings

Category: Lipper Real Estate Funds	Rank	Percentile
1 Year	123/227	54
3 Year	111/206	54
5 Year	133/174	76
10 Year	32/83	39

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector	Industry
Simon Property Group, Inc.	Financials	Retail REITs
Equity Residential	Financials	Residential REITs
HCP, Inc.	Financials	Specialized REITs
Host Hotels & Resorts, Inc.	Financials	Specialized REITs
Vornado Realty Trust	Financials	Diversified REITs
Digital Realty Trust, Inc.	Financials	Office REITs
Boston Properties, Inc.	Financials	Office REITs
Macerich Company (The)	Financials	Retail REITs
Public Storage, Inc.	Financials	Specialized REITs
BioMed Realty Trust, Inc.	Financials	Office REITs

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Real Estate Securities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,082.60	1.84%	$	9.58
Class B	$1,000	$1,075.90	3.10%	$	16.09
Class C	$1,000	$1,077.80	2.61%	$	13.61
Class E	$1,000	$1,082.80	1.67%	$	8.75
Class I	$1,000	$1,086.70	1.16%	$	6.05
Class R	$1,000	$1,083.40	1.71%	$	8.96
Class Y	$1,000	$1,085.00	1.40%	$	7.30
Based on 5% Return(2)
Class A	$1,000	$1,015.84	1.84%	$	9.27
Class B	$1,000	$1,009.53	3.10%	$	15.57
Class C	$1,000	$1,011.98	2.61%	$	13.18
Class E	$1,000	$1,016.71	1.67%	$	8.47
Class I	$1,000	$1,019.26	1.16%	$	5.86
Class R	$1,000	$1,016.51	1.71%	$	8.67
Class Y	$1,000	$1,018.07	1.40%	$	7.06

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Real Estate Securities Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Diversified Real Estate Activities - 2.4%
CoreSite Realty Corporation (A)		130	$	2,131
DuPont Fabros Technology, Inc.		177		4,459
Jones Lang LaSalle Incorporated		23		2,019
				8,609
Diversified REITs - 5.4%
Liberty Property Trust		93		2,954
Retail Opportunity Investments Corp.		132		1,267
Vornado Realty Trust		137		11,676
Washington Real Estate Investment Trust		104		3,290
				19,187
Health Care Facilities - 0.7%
Brookdale Senior Living, Inc. (A)		143		2,331
Hotels, Resorts & Cruise Lines - 2.4%
Gaylord Entertainment Company (A)		112		3,428
Hyatt Hotels Corporation, Class A (A)		33		1,230
Marriott International, Inc., Class A		79		2,824
Starwood Hotels & Resorts Worldwide, Inc.		25		1,298
				8,780
Industrial REITs - 6.9%
AMB Property Corporation		249		6,578
EastGroup Properties, Inc.		141		5,252
First Potomac Realty Trust		307		4,604
ProLogis		662		7,798
				24,232
Office REITs - 19.3%
Alexandria Real Estate Equities, Inc.		104		7,301
BioMed Realty Trust, Inc.		474		8,491
Boston Properties, Inc.		128		10,665
Brandywine Realty Trust		505		6,189
Corporate Office Properties Trust		167		6,215
Digital Realty Trust, Inc.		173		10,694
Douglas Emmett, Inc.		346		6,051
Highwoods Properties, Inc.		24		789
Kilroy Realty Corporation		87		2,893
Mack-Cali Realty Corporation		100		3,264
SL Green Realty Corp.		88		5,541
				68,093
Real Estate Management & Development - 3.5%
Brookfield Properties Corporation		547		8,483
CB Richard Ellis Group, Inc., Class A (A)		220		4,016
				12,499
Real Estate Operating Companies - 2.1%
Forest City Enterprises, Inc., Class A (A)		407		5,217
Hudson Pacific Properties, Inc.		125		2,043
				7,260
Residential REITs - 15.4%
American Campus Communities, Inc.		178		5,412
Associated Estates Realty Corporation		258		3,603
AvalonBay Communities, Inc.		46		4,813
Camden Property Trust		91		4,351
Equity Lifestyle Properties, Inc.		71		3,852
Equity Residential		330		15,698
Essex Property Trust, Inc.		34		3,685
Home Properties, Inc.		85		4,496
Mid-America Apartment Communities, Inc.		39		2,285
UDR, Inc.		289		6,102
				54,297
Retail REITs - 16.9%
Acadia Realty Trust		241		4,573
Agree Realty Corporation		76		1,925
CBL & Associates Properties, Inc.		253		3,305
Developers Diversified Realty Corporation		281		3,155
Federal Realty Investment Trust		31		2,548
Kite Realty Group Trust		52		232
Macerich Company (The)		229		9,816
Regency Centers Corporation		83		3,256
Simon Property Group, Inc.		318		29,537
Weingarten Realty Investors		47		1,017
				59,364
Specialized REITs - 18.3%
Chatham Lodging Trust		63		1,178
DiamondRock Hospitality Company		501		4,759
Extra Space Storage Inc.		179		2,863
FelCor Lodging Trust Incorporated (A)		185		850
HCP, Inc.		344		12,380
Health Care REIT, Inc.		89		4,223
Hersha Hospitality Trust		543		2,812
Host Hotels & Resorts, Inc.		852		12,332
LaSalle Hotel Properties		145		3,387
Nationwide Health Properties, Inc.		77		2,958
Pebblebrook Hotel Trust (A)		165		2,968
Public Storage, Inc.		90		8,724
U-Store-It Trust		196		1,633
Ventas, Inc.		65		3,347
				64,414
Wireless Telecommunication Service - 0.3%
American Tower Corporation, Class A (A)		17		887
TOTAL COMMON STOCKS - 93.6%			$	329,953
(Cost: $252,824)
PREFERRED STOCKS - 0.5%
Diversified REITs
CapLease, Inc., 8.125% Series A Cumulative (A)		66	$	1,662
(Cost: $1,524)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) - 4.3%
CVS Caremark Corporation,
0.300%, 10-6-10	$3,000			3,000
Hewlett-Packard Company,
0.170%, 10-6-10		3,310		3,310
Illinois Tool Works Inc.,
0.180%, 10-19-10		3,201		3,201
John Deere Credit Limited (John Deere Capital Corporation),
0.210%, 10-20-10		5,000		4,999
Novartis Finance Corp.,
0.000%, 10-1-10		588		588
				15,098
Municipal Obligations - Taxable - 1.1%
NYC GO Bonds, Fiscal 2006 Ser E (Bank of America, N.A.),
0.270%, 10-1-10 (C)		4,000		4,000
TOTAL SHORT-TERM SECURITIES - 5.4%			$	19,098
(Cost: $19,098)

TOTAL INVESTMENT SECURITIES - 99.5%	$	350,713
(Cost: $273,446)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.5%		1,590
NET ASSETS - 100.0%	$	352,303

Notes to Schedule of Investments

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

(B)Rate shown is the yield to maturity at September 30, 2010.

(C)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

The following acronym is used throughout this schedule:
REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Science and Technology Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	96.8%
Information Technology	68.1%
Health Care	15.0%
Industrials	5.8%
Consumer Staples	4.9%
Telecommunication Services	2.8%
Financials	0.2%
Bonds	2.0%
Corporate Debt Securities	2.0%
Cash and Cash Equivalents	1.2%

Lipper Rankings

Category: Lipper Science &       Technology Funds	Rank	Percentile
1 Year	110/141	78
3 Year	33/135	25
5 Year	26/120	22
10 Year	6/81	8

Past performance is no guarantee of future results. Rankings are for Class C shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

North America	83.3%
United States	82.2%
Other North America	1.1%
Pacific Basin	7.0%
Europe	4.8%
Spain	3.9%
Other Europe	0.9%
Bahamas/Caribbean	2.9%
South America	0.8%
Cash and Cash Equivalents	1.2%

Top 10 Equity Holdings

Company	Sector	Industry
Alliance Data Systems       Corporation	Information Technology	Data Processing & Outsourced Services
Apple Inc.	Information Technology	Computer Hardware
Microsoft Corporation	Information Technology	Systems Software
Aspen Technology, Inc.	Information Technology	Application Software
Cree, Inc.	Information Technology	Semiconductors
Genzyme Corporation	Health Care	Biotechnology
ACI Worldwide, Inc.	Information Technology	Application Software
First Solar, Inc.	Information Technology	Electrical Components & Equipment
Lawson Software, Inc.	Information Technology	Application Software
Telvent GIT, S.A.	Information Technology	IT Consulting & Other Services

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Science and Technology Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10			Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000		$	996.30	1.44%	$	7.19
Class B	$1,000		$	991.40	2.34%	$	11.75
Class C	$1,000		$	992.30	2.18%	$	10.96
Class E	$1,000		$	996.30	1.43%	$	7.19
Class I	$1,000		$	998.10	1.08%	$	5.39
Class R	$1,000		$	995.20	1.62%	$	8.08
Class Y	$1,000		$	996.70	1.33%	$	6.69
Based on 5% Return(2)
Class A	$1,000		$	1,017.86	1.44%	$	7.26
Class B	$1,000		$	1,013.32	2.34%	$	11.88
Class C	$1,000		$	1,014.11	2.18%	$	11.08
Class E	$1,000		$	1,017.90	1.43%	$	7.26
Class I	$1,000		$	1,019.64	1.08%	$	5.45
Class R	$1,000		$	1,016.96	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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Science and Technology Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Agricultural Products - 4.9%
Archer Daniels Midland Company		704	$	22,456
Bunge Limited		566		33,478
				55,934
Application Software - 10.7%
ACI Worldwide, Inc. (A)		1,663		37,237
Aspen Technology, Inc. (A)		4,509		46,758
Lawson Software, Inc. (A)		4,340		36,760
				120,755
Biotechnology - 9.8%
Amgen Inc. (A)		533		29,379
Genzyme Corporation (A)		616		43,593
Isis Pharmaceuticals, Inc. (A)		483		4,055
Vertex Pharmaceuticals Incorporated (A)		965		33,353
				110,380
Communications Equipment - 2.0%
Alcatel, ADR		2,874		9,715
Research In Motion Limited (A)		271		13,202
				22,917
Computer Hardware - 8.6%
Apple Inc. (A)		224		63,447
Hewlett-Packard Company		283		11,897
High Tech Computer Corp. (B)		997		22,628
				97,972
Computer Storage & Peripherals - 0.2%
SMART Technologies Inc., Class A (A)		157		2,127
Data Processing & Outsourced Services - 10.6%
Alliance Data Systems Corporation (A)		996		64,998
Euronet Worldwide, Inc. (A)		1,449		26,068
VeriFone Holdings, Inc. (A)		790		24,552
WNS (Holdings) Limited, ADR (A)		516		4,627
				120,245
Diversified Support Services - 1.1%
EnerNOC, Inc. (A)		387		12,159
Electrical Components & Equipment - 4.3%
First Solar, Inc. (A)		251		37,029
POWER-ONE, INC. (A)		1,192		10,833
				47,862
Electronic Equipment & Instruments - 2.9%
Elster Group SE, ADR (A)		498		6,867
Itron, Inc. (A)		417		25,545
				32,412
Health Care Distributors - 0.1%
Animal Health International, Inc. (A)		501		1,379
Health Care Facilities - 1.5%
HealthSouth Corporation (A)		907		17,409
Health Care Services - 0.7%
Fleury S.A. (B)(C)		422		5,229
Fleury S.A. (B)		147		1,826
Omnicare, Inc.		30		726
				7,781
Health Care Technology - 2.2%
Cerner Corporation (A)		299		25,080
Home Entertainment Software - 2.3%
Activision Blizzard, Inc.		475		5,142
Nintendo Co., Ltd. (B)		83		20,640
				25,782
Industrial Machinery - 3.6%
ESCO Technologies Inc.		927		30,818
Pentair, Inc.		320		10,752
				41,570
Integrated Telecommunication Services - 0.8%
CenturyTel, Inc.		242		9,534
Internet Software & Services - 4.3%
Google Inc., Class A (A)		45		23,608
SAVVIS, Inc. (A)		1,218		25,669
				49,277
IT Consulting & Other Services - 3.8%
Acxiom Corporation (A)		591		9,380
Telvent GIT, S.A.		1,484		33,574
				42,954
Life & Health Insurance - 0.2%
Amil Participacoes S.A. (B)		179		1,717
Pharmaceuticals - 0.7%
Ironwood Pharmaceuticals, Inc., Class A (A)		740		7,533
Research & Consulting Services - 0.1%
Mistras Group, Inc. (A)		70		805
Semiconductor Equipment - 1.8%
MEMC Electronic Materials, Inc. (A)		937		11,166
Photronics, Inc. (A)		1,713		9,060
				20,226
Semiconductors - 13.3%
Cree, Inc. (A)		817		44,329
Inotera Memories, Inc. (B)		17,916		10,036
Micron Technology, Inc. (A)		4,089		29,480
PMC-Sierra, Inc. (A)		1,918		14,119
Samsung Electronics Co., Ltd. (B)		31		21,056
Texas Instruments Incorporated		1,215		32,975
				151,995
Systems Software - 4.3%
Microsoft Corporation		2,003		49,058
Wireless Telecommunication Service - 2.0%
Sprint Nextel Corporation (A)		4,744		21,964
TOTAL COMMON STOCKS - 96.8%			$	1,096,827
(Cost: $961,752)

CORPORATE DEBT SECURITIES	Principal
Biotechnology - 1.1%
Vertex Pharmaceuticals Incorporated, Convertible,
3.350%, 10-1-15	$	13,000		12,919
IT Consulting & Other Services - 0.9%
Telvent GIT, S.A., Convertible,
5.500%, 4-15-15 (C)		10,000		10,050
TOTAL CORPORATE DEBT SECURITIES - 2.0%			$	22,969
(Cost: $23,000)
TOTAL INVESTMENT SECURITIES - 98.8%			$	1,119,796
(Cost: $984,752)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.2%				13,217
NET ASSETS - 100.0%			$	1,133,013

Notes to Schedule of Investments

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

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

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $15,279 or 1.3% of net assets.

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

Country Diversification
(as a % of net assets)
United States	82.2%
Spain	3.9%
Taiwan	2.9%
Bermuda	2.9%
South Korea	1.9%
Japan	1.8%
Canada	1.1%
France	0.9%
Brazil	0.8%
India	0.4%
Other+	1.2%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

STATEMENT OF ASSETS AND LIABILITIES

Ivy Funds

AS OF SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands, except       per share amounts)	Ivy Asset Strategy Fund			Ivy Asset Strategy New Opportunities Fund			Ivy Balanced Fund			Ivy Energy Fund			Ivy Global Natural Resources Fund			Ivy Real Estate Securities Fund			Ivy Science and Technology Fund
ASSETS
Investments in unaffiliated securities       at market value+	$	18,306,420		$	110,249		$	182,188		$	89,492		$	4,903,641		$	350,713		$	1,119,796
Investments in affiliated securities       at market value+		1,676,279			––			––			––			267,474			––			––
Bullion at market value+		2,890,068			––			––			––			––			––			––
Investments at Market Value		22,872,767			110,249			182,188			89,492			5,171,115			350,713			1,119,796
Cash		––			––			––			14			––			26			––
Cash denominated in foreign currencies       at market value+		24,198			––			––			––			––			––			346
Restricted cash		138,758			––			––			––			––			––			––
Initial margin deposit		62,545			––			––			––			––			––			––
Unrealized appreciation on forward       foreign currency contracts		2,157			163			––			––			382			––			––
Investment securities sold receivable		66,664			1,321			1,356			––			65,597			2,756			22,613
Dividends and interest receivable		30,566			28			653			33			6,455			910			576
Capital shares sold receivable		855,169			6,346			581			661			13,379			473			2,866
Variation margin receivable		25,869			––			––			––			1,937			––			––
Receivable from affiliates		277			100			––			41			290			4			15
Prepaid and other assets		635			97			45			52			198			59			106
Total Assets		24,079,605			118,304			184,823			90,293			5,259,353			354,941			1,146,318
LIABILITIES
Investment securities purchased payable		361,419			6,448			––			––			20,108			1,563			6,652
Variation margin payable		580			––			––			––			––			––			––
Unrealized depreciation on forward       foreign currency contracts		102,961			155			––			––			18,373			––			––
Capital shares redeemed payable		790,909			107			268			561			8,967			836			1,480
Trustees and Chief Compliance Officer       fees payable		477			––	*		16			2			402			50			60
Overdraft due to custodian		24,970			137			80			––			6,981			––			4,671
Distribution and service fees payable		297			1			19			1			50			3			11
Shareholder servicing payable		4,938			11			40			35			1,815			141			310
Investment management fee payable		350			3			4			2			116			9			26
Accounting services fee payable		23			4			6			4			23			9			23
Written options at market value+		21,221			––			––			––			––			––			––
Other liabilities		2,650			66			16			16			467			27			72
Total Liabilities		1,310,795			6,932			449			621			57,302			2,638			13,305
Total Net Assets	$	22,768,810		$	111,372		$	184,374		$	89,672		$	5,202,051		$	352,303		$	1,133,013
NET ASSETS
Capital paid in (shares authorized -       unlimited)	$	23,181,822		$	98,566		$	156,831		$	88,049		$	7,018,180		$	370,445		$	987,925
Undistributed (distributions in excess of)       net investment income		135,057			(386	)		148			(186	)		(2,744	)		1,293			(4,092	)
Accumulated net realized gain (loss)		(5,219,760	)		(1,327	)		(1,936	)	(16,230		)	(2,655,214		)		(96,702	)		14,135
Net unrealized appreciation		4,671,691			14,519			29,331			18,039			841,829			77,267			135,045
Total Net Assets	$	22,768,810		$	111,372		$	184,374		$	89,672		$	5,202,051		$	352,303		$	1,133,013

* Not shown due to rounding.

STATEMENT OF ASSETS AND LIABILITIES

Ivy Funds

AS OF SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands, except       per share amounts) (Continued)	Ivy Asset Strategy Fund		Ivy Asset Strategy New Opportunities Fund		Ivy Balanced Fund		Ivy Energy Fund		Ivy Global Natural Resources Fund		Ivy Real Estate Securities Fund		Ivy Science and Technology Fund
CAPITAL SHARES OUTSTANDING:
Class A		342,978		6,086		5,196		5,697		138,381		11,811		14,692
Class B		26,169		234		456		296		9,942		402		950
Class C		353,550		1,570		2,834		1,275		55,154		622		6,749
Class E		1,575		10		7		10		334		48		151
Class I		237,949		1,487		204		359		61,680		304		4,299
Class R		1,911		50		N/A		N/A		3,245		39		767
Class Y		44,029		431		2,373		557		30,120		7,254		11,008
NET ASSET VALUE PER SHARE:
Class A	$22.78		$11.29		$16.67		$11.00		$17.81		$17.21		$29.24
Class B		22.03		11.25		16.61		10.61		15.99		17.02		26.39
Class C		22.14		11.25		16.63		10.68		15.50		17.08		27.08
Class E		22.84		11.29		16.66		11.07		17.98		17.21		29.22
Class I		22.97		11.30		16.66		11.12		18.13		17.27		31.10
Class R		22.68		11.27		N/A		N/A		17.67		17.21		29.13
Class Y		22.83		11.29		16.67		11.05		18.01		17.21		30.44
+COST
Investments in unaffiliated securities at cost	$	14,802,607	$95,715		$152,857		$71,453		$4,085,471		$273,446		$984,752
Investments in affiliated securities at cost		1,082,778		––		––		––		220,086		––		––
Bullion at cost		2,075,912		––		––		––		––		––		––
Cash denominated in foreign currencies at cost		22,933		––		––		––		––		––		346
Written options premiums received at cost		23,545		––		––		––		––		––		––

See Accompanying Notes to Financial Statements.

STATEMENT OF OPERATIONS

Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands)	Ivy Asset Strategy Fund				Ivy Asset Strategy New Opportunities Fund(1)			Ivy Balanced Fund			Ivy Energy Fund			Ivy Global Natural Resources Fund			Ivy Real Estate Securities Fund			Ivy Science and Technology Fund
INVESTMENT INCOME
Dividends from unaffiliated securities		$	266,676		$	296		$	953		$	538		$	37,898		$	4,850		$	4,437
Dividends from affiliated securities			5,957			––			––			––			––			––			––
Foreign dividend withholding tax			(23,300	)		(16	)		––			(11	)		(2,815	)		(20	)		(243	)
Interest and amortization from       unaffiliated securities			2,713			7			1,071			3			472			12			306
Foreign interest withholding tax			––			––			––			––			(39	)		––			––
Total Investment Income			252,046			287			2,024			530			35,516			4,842			4,500
EXPENSES
Investment management fee			60,860			236			612			366			21,081			1,494			4,761
Distribution and service fees:
Class A			10,522			38			103			76			3,125			238			530
Class B			2,744			6			35			15			807			33			121
Class C			37,934			33			212			66			4,367			50			899
Class E			41			––	*		––	*		––	*		7			1			5
Class R			86			1			N/A			N/A			134			1			50
Class Y			1,221			3			48			7			688			148			415
Shareholder servicing:
Class A			6,445			24			97			116			3,772			543			549
Class B			582			1			10			7			307			35			49
Class C			5,359			3			27			17			1,030			29			231
Class E			111			––	*		––	*		––	*		32			5			20
Class I			3,257			6			2			3			867			4			114
Class R			35			––	*		N/A			N/A			54			1			20
Class Y			804			2			30			5			464			89			264
Registration fees			426			58			48			53			128			60			90
Custodian fees			3,574			56			6			5			729			13			73
Trustees and Chief Compliance Officer       fees			355			––	*		2			1			63			2			16
Accounting services fee			136			17			36			24			136			53			136
Legal fees			108			––	*		1			1			24			1			5
Audit fees			52			––	*		13			13			31			22			19
Other			1,867			1			14			13			720			34			107
Total Expenses			136,519			485			1,296			788			38,566			2,856			8,474
Less:
Expenses in excess of limit			(277	)		(100	)		––			(41	)		(290	)		(4	)		(15	)
Total Net Expenses			136,242			385			1,296			747			38,276			2,852			8,459
Net Investment Income (Loss)			115,804			(98	)		728			(217	)		(2,760	)		1,990			(3,959	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities			(113,080	)		(916	)		3,936			50			(141,439	)		13,486			7,550
Investments in affiliated securities			(871	)		––			––			––			(15,113	)		––			––
Futures contracts			(929,622	)		(220	)		––			––			(10,280	)		––			––
Written options			(19,303	)		––			––			––			––			––			1,195
Swap agreements			––			(10	)		––			––			––			––			––
Forward foreign currency contracts			(89,738	)		(181	)		––			––			(15,451	)		––			––
Foreign currency exchange             transactions			(5,088	)		(288	)		––			––			(976	)		––			44
Net change in unrealized appreciation       (depreciation) on:
Investments in unaffiliated securities			1,280,990			14,504	(2)		(4,270	)		(1,016	)		(11,917	)		10,484			(15,831	)
Investments in affiliated securities			257,563			––			––			––			(53,877	)		––			––
Futures contracts			(78,953	)		––			––			––			(5,780	)		––			––
Written options			18,449			––			––			––			––			––			––
Forward foreign currency contracts			(157,310	)		8			––			––			(14,563	)		––			––
Foreign currency exchange             transactions			118			7			––			––			62			––			9
Net Realized and Unrealized             Gain (Loss)			163,155			12,904			(334	)		(966	)		(269,334	)		23,970			(7,033	)
Net Increase (Decrease) in                  Net Assets Resulting                  from Operations		$	278,959		$	12,806		$	394		$	(1,183	)	$	(272,094	)	$	25,960		$	(10,992	)

* Not shown due to rounding.

(1) For the period from May 3, 2010 (commencement of operations) through September 30, 2010.

(2) Net of India deferred taxes of $31.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Asset Strategy Fund							Ivy Asset Strategy New Opportunities Fund			Ivy Balanced Fund
(In thousands)	Six months ended 9-30-10 (Unaudited)				Fiscal year ended 3-31-10			Fiscal period ended 9-30-10 (Unaudited)(1)			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	115,804		$	88,627		$	(98	)	$	728		$	1,966
Net realized gain (loss) on investments			(1,157,702	)		(252,005	)		(1,615	)		3,936			6,198
Net change in unrealized appreciation (depreciation)			1,320,857			3,047,545			14,519			(4,270	)		34,153
Net Increase in Net Assets Resulting             from Operations			278,959			2,884,167			12,806			394			42,317
Distributions to Shareholders From:
Net investment income:
Class A			––			(32,403	)		––			(376	)		(1,017	)
Class B			––			––			––			(4	)		(31	)
Class C			––			––			––			(56	)		(340	)
Class E			––			(120	)		––			(1	)		(1	)
Class I			––			(17,688	)		––			(21	)		(45	)
Class R			––			(32	)		––			N/A			N/A
Class Y			––			(4,250	)		––			(192	)		(520	)
Net realized gains:
Class A			––			––			––			––			––
Class B			––			––			––			––			––
Class C			––			––			––			––			––
Class E			––			––			––			––			––
Class I			––			––			––			––			––
Class R			––			––			––			N/A			N/A
Class Y			––			––			––			––			––
Total Distributions to Shareholders			––			(54,493	)		––			(650	)		(1,954	)
Capital Share Transactions			386,170			7,681,502			98,566			13,150			(28,482	)
Net Increase in Net Assets			665,129			10,511,176			111,372			12,894			11,881
Net Assets, Beginning of Period			22,103,681			11,592,505			––			171,480			159,599
Net Assets, End of Period		$	22,768,810		$	22,103,681		$	111,372		$	184,374		$	171,480
Undistributed (distributions in excess of)       net investment income			$135,057			$24,342			$(386	)		$148			$70

(1) For the period from May 3, 2010 (commencement of operations) through September 30, 2010.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

Ivy Energy Fund

Ivy Global Natural Resources Fund

(In thousands)

Six months ended 9-30-10 (Unaudited)

Fiscal year ended 3-31-10

Six months ended 9-30-10 (Unaudited)

Fiscal year ended 3-31-10

INCREASE (DECREASE) IN NET ASSETS

Operations:

Net investment loss

$

(217

)

$

(399

)

$

(2,760

)

$

(31,861

)

Net realized gain (loss) on investments

50

1,774

(183,259

)

(221,783

)

Net change in unrealized appreciation (depreciation)

(1,016

)

22,262

(86,075

)

2,324,591

Net Increase (Decrease) in Net Assets Resulting             from Operations

(1,183

)

23,637

(272,094

)

2,070,947

Distributions to Shareholders From:

Net investment income:

Class A

––

––

––

––

Class B

––

––

––

––

Class C

––

––

––

––

Class E

––

––

––

––

Class I

––

––

––

––

Class R

N/A

N/A

––

––

Class Y

––

––

––

––

Advisor Class

N/A

N/A

N/A

––

Net realized gains:

Class A

––

––

––

––

Class B

––

––

––

––

Class C

––

––

––

––

Class E

––

––

––

––

Class I

––

––

––

––

Class R

N/A

N/A

––

––

Class Y

––

––

––

––

Advisor Class

N/A

N/A

N/A

––

Total Distributions to Shareholders

––

––

––

––

Capital Share Transactions

4,225

20,308

(332,625

)

905,651

Net Increase (Decrease) in Net Assets

3,042

43,945

(604,719

)

2,976,598

Net Assets, Beginning of Period

86,630

42,685

5,806,770

2,830,172

Net Assets, End of Period

$

89,672

$

86,630

$

5,202,051

$

5,806,770

Undistributed (distributions in excess of) net investment income

$(186

)

$30

$(2,744

)

$992

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

(In thousands)	Ivy Real Estate Securities Fund							Ivy Science and Technology Fund
	Six months ended 9-30-10 (Unaudited)				Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	1,990		$	4,028		$	(3,959	)	$	(3,243	)
Net realized gain (loss) on investments			13,486			(42,687	)		8,789			39,335
Net change in unrealized appreciation (depreciation)			10,484			190,748			(15,822	)		235,688
Net Increase (Decrease) in Net Assets Resulting             from Operations			25,960			152,089			(10,992	)		271,780
Distributions to Shareholders From:
Net investment income:
Class A			(640	)		(2,195	)		––			––
Class B			––			(5	)		––			––
Class C			(8	)		(54	)		––			––
Class E			(3	)		(9	)		––			––
Class I			(34	)		(24	)		––			––
Class R			(2	)		(5	)		––			––
Class Y			(671	)		(1,873	)		––			––
Net realized gains:
Class A			––			––			––			(2,433	)
Class B			––			––			––			––
Class C			––			––			––			(195	)
Class E			––			––			––			(20	)
Class I			––			––			––			(602	)
Class R			––			––			––			(70	)
Class Y			––			––			––			(2,014	)
Total Distributions to Shareholders			(1,358	)		(4,165	)		––			(5,334	)
Capital Share Transactions			18,942			(3,506	)		3,445			296,034
Net Increase (Decrease) in Net Assets			43,544			144,418			(7,547	)		562,480
Net Assets, Beginning of Period			308,759			164,341			1,140,560			578,080
Net Assets, End of Period		$	352,303		$	308,759		$	1,133,013		$	1,140,560
Undistributed (distributions in excess of) net investment income			$1,293			$662			$(4,092	)		$(177	)

See Accompanying Notes to Financial Statements.

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FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ASSET STRATEGY FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital
Class A Shares
Six-month period ended 9-30-2010       (unaudited)		$	22.42	$	0.14	(2)	$	0.22	(2)	$	0.36		$	––		$	––		$	––
Fiscal year ended 3-31-2010			18.69		0.16	(2)		3.66	(2)		3.82			(0.09	)		––			––
Fiscal year ended 3-31-2009			27.06		0.24	(2)		(6.18	)(2)		(5.94	)		(0.04	)		(2.38	)		(0.01	)
Fiscal year ended 3-31-2008			20.65		0.21	(2)		6.61	(2)		6.82			(0.21	)		(0.20	)		––
Fiscal year ended 3-31-2007			18.76		0.25	(2)		1.81	(2)		2.06			(0.02	)		(0.15	)		––
Fiscal year ended 3-31-2006			14.21		0.05			4.68			4.73			(0.04	)		(0.14	)		––
Class B Shares
Six-month period ended 9-30-2010       (unaudited)			21.77		0.05	(2)		0.21	(2)		0.26			––			––			––
Fiscal year ended 3-31-2010			18.23		(0.01	)(2)		3.55	(2)		3.54			––			––			––
Fiscal year ended 3-31-2009			26.57		0.05	(2)		(6.05	)(2)		(6.00	)		––			(2.33	)		(0.01	)
Fiscal year ended 3-31-2008			20.22		(0.02	)(2)		6.50	(2)		6.48			––			(0.13	)		––
Fiscal year ended 3-31-2007			18.50		0.08			1.79			1.87			––			(0.15	)		––
Fiscal year ended 3-31-2006			14.11		0.01			4.52			4.53			––	*		(0.14	)		––
Class C Shares
Six-month period ended 9-30-2010       (unaudited)			21.87		0.06	(2)		0.21	(2)		0.27			––			––			––
Fiscal year ended 3-31-2010			18.30		0.01	(2)		3.56	(2)		3.57			––			––			––
Fiscal year ended 3-31-2009			26.64		0.06	(2)		(6.05	)(2)		(5.99	)		––			(2.34	)		(0.01	)
Fiscal year ended 3-31-2008			20.27		(0.01	)(2)		6.53	(2)		6.52			––			(0.15	)		––
Fiscal year ended 3-31-2007			18.54		0.07			1.81			1.88			––			(0.15	)		––
Fiscal year ended 3-31-2006			14.12		0.01			4.56			4.57			(0.01	)		(0.14	)		––
Class E Shares
Six-month period ended 9-30-2010       (unaudited)			22.47		0.14	(2)		0.23	(2)		0.37			––			––			––
Fiscal year ended 3-31-2010			18.74		0.17	(2)		3.66	(2)		3.83			(0.10	)		––			––
Fiscal year ended 3-31-2009			27.05		0.24	(2)		(6.19	)(2)		(5.95	)		––			(2.35	)		(0.01	)
Fiscal year ended 3-31-2008(5)			20.69		0.05	(2)		6.57	(2)		6.62			(0.11	)		(0.15	)		––
Class I Shares
Six-month period ended 9-30-2010       (unaudited)			22.58		0.17	(2)		0.22	(2)		0.39			––			––			––
Fiscal year ended 3-31-2010			18.81		0.17	(2)		3.73	(2)		3.90			(0.13	)		––			––
Fiscal year ended 3-31-2009			27.17		0.31	(2)		(6.23	)(2)		(5.92	)		(0.05	)		(2.38	)		(0.01	)
Fiscal year ended 3-31-2008(5)			20.71		0.34	(2)		6.56	(2)		6.90			(0.24	)		(0.20	)		––
Class R Shares
Six-month period ended 9-30-2010       (unaudited)			22.35		0.10	(2)		0.23	(2)		0.33			––			––			––
Fiscal year ended 3-31-2010			18.65		0.03	(2)		3.72	(2)		3.75			(0.05	)		––			––
Fiscal year ended 3-31-2009(7)			26.74		0.05			(5.73	)		(5.68	)		(0.02	)		(2.38	)		(0.01	)
Class Y Shares
Six-month period ended 9-30-2010       (unaudited)			22.46		0.15	(2)		0.22	(2)		0.37			––			––			––
Fiscal year ended 3-31-2010			18.72		0.21	(2)		3.63	(2)		3.84			(0.10	)		––			––
Fiscal year ended 3-31-2009			27.08		0.24	(2)		(6.18	)(2)		(5.94	)		(0.03	)		(2.38	)		(0.01	)
Fiscal year ended 3-31-2008			20.67		0.18	(2)		6.62	(2)		6.80			(0.19	)		(0.20	)		––
Fiscal year ended 3-31-2007			18.78		0.26	(2)		1.80	(2)		2.06			(0.02	)		(0.15	)		––
Fiscal year ended 3-31-2006			14.22		0.05			4.69			4.74			(0.04	)		(0.14	)		––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

(7)For the period from July 31, 2008 (commencement of operations of the class) through March 31, 2009.

(8)For the fiscal year ended March 31, 2009.

	Total Distributions			Net Asset Value, End of Period		Total Return		Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)	$	––		$	22.78	1.61	%(3)	$	7,814		1.03	%(4)		1.31	%(4)		––	%		––	%		41	%
Fiscal year ended 3-31-2010		(0.09	)		22.42	20.46	(3)		8,765		1.05			0.79			––			––			96
Fiscal year ended 3-31-2009		(2.43	)		18.69	- -21.41	(3)		4,787		1.03			1.05			––			––			279
Fiscal year ended 3-31-2008		(0.41	)		27.06	33.19	(3)		5,379		1.00			0.70			––			––			57
Fiscal year ended 3-31-2007		(0.17	)		20.65	11.04	(3)		1,118		1.13			1.28			––			––			123
Fiscal year ended 3-31-2006		(0.18	)		18.76	33.40	(3)		269		1.28			0.69			––			––			53
Class B Shares
Six-month period ended       9-30-2010 (unaudited)		––			22.03	1.20			577		1.84	(4)		0.48	(4)		––			––			41
Fiscal year ended 3-31-2010		––			21.77	19.42			550		1.88			- -0.03			––			––			96
Fiscal year ended 3-31-2009		(2.34	)		18.23	- -22.04			330		1.87			0.22			––			––			279
Fiscal year ended 3-31-2008		(0.13	)		26.57	32.07			330		1.83			- -0.09			––			––			57
Fiscal year ended 3-31-2007		(0.15	)		20.22	10.16			119		1.98			0.43			––			––			123
Fiscal year ended 3-31-2006		(0.14	)		18.50	32.22			37		2.14			- -0.13			––			––			53
Class C Shares
Six-month period ended       9-30-2010 (unaudited)		––			22.14	1.24			7,828		1.76	(4)		0.56	(4)		––			––			41
Fiscal year ended 3-31-2010		––			21.87	19.51			7,733		1.80			0.05			––			––			96
Fiscal year ended 3-31-2009		(2.35	)		18.30	- -21.96			4,644		1.80			0.29			––			––			279
Fiscal year ended 3-31-2008		(0.15	)		26.64	32.18			4,854		1.77			- -0.07			––			––			57
Fiscal year ended 3-31-2007		(0.15	)		20.27	10.19			1,153		1.90			0.52			––			––			123
Fiscal year ended 3-31-2006		(0.15	)		18.54	32.45			250		2.01			- -0.01			––			––			53
Class E Shares
Six-month period ended       9-30-2010 (unaudited)		––			22.84	1.65	(3)		36		1.00	(4)		1.32	(4)		1.56	(4)		0.76	(4)		41
Fiscal year ended 3-31-2010		(0.10	)		22.47	20.45	(3)		32		1.00			0.84			1.56			0.28			96
Fiscal year ended 3-31-2009		(2.36	)		18.74	- -21.44	(3)		17		0.93			1.24			1.18			0.99			279
Fiscal year ended 3-31-2008(5)		(0.26	)		27.05	32.15	(3)		11		1.63	(4)		- -0.05	(4)		––			––			57	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)		––			22.97	1.73			5,466		0.78	(4)		1.54	(4)		––			––			41
Fiscal year ended 3-31-2010		(0.13	)		22.58	20.74			3,973		0.81			0.92			––			––			96
Fiscal year ended 3-31-2009		(2.44	)		18.81	- -21.20			360		0.79			1.35			––			––			279
Fiscal year ended 3-31-2008(5)		(0.44	)		27.17	33.45			104		0.82	(4)		0.84	(4)		––			––			57	(6)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)		––			22.68	1.48			43		1.32	(4)		0.96	(4)		––			––			41
Fiscal year ended 3-31-2010		(0.05	)		22.35	20.12			28		1.33			0.20			––			––			96
Fiscal year ended 3-31-2009(7)		(2.41	)		18.65	- -20.65			1		1.99	(4)		1.36	(4)		––			––			279	(8)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)		––			22.83	1.65			1,005		1.00	(4)		1.34	(4)		1.04	(4)		1.30	(4)		41
Fiscal year ended 3-31-2010		(0.10	)		22.46	20.51			1,024		1.00			0.93			1.11			0.82			96
Fiscal year ended 3-31-2009		(2.42	)		18.72	- -21.39			1,453		1.03			1.05			1.09			0.99			279
Fiscal year ended 3-31-2008		(0.39	)		27.08	33.07			1,573		1.07			0.57			––			––			57
Fiscal year ended 3-31-2007		(0.17	)		20.67	11.04			203		1.15			1.30			––			––			123
Fiscal year ended 3-31-2006		(0.18	)		18.78	33.46			29		1.22			0.81			––			––			53

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ASSET STRATEGY NEW OPPORTUNITIES FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain on Investments			Total from Investment Operations		Distributions From Net Investment Income		Distributions From Net Realized Gains		Total Distributions
Class A Shares
Fiscal period ended 9-30-2010       (unaudited)(2)		$	10.00	$	(0.01	)(3)	$	1.30	(3)	$	1.29	$	––	$	––	$	––
Class B Shares
Fiscal period ended 9-30-2010       (unaudited)(2)			10.00		(0.05	)(3)		1.30	(3)		1.25		––		––		––
Class C Shares
Fiscal period ended 9-30-2010       (unaudited)(2)			10.00		(0.08	)(3)		1.33	(3)		1.25		––		––		––
Class E Shares
Fiscal period ended 9-30-2010       (unaudited)(2)			10.00		(0.01	)(3)		1.30	(3)		1.29		––		––		––
Class I Shares
Fiscal period ended 9-30-2010       (unaudited)(2)			10.00		0.00	(3)		1.30	(3)		1.30		––		––		––
Class R Shares
Fiscal period ended 9-30-2010       (unaudited)(2)			10.00		(0.03	)(3)		1.30	(3)		1.27		––		––		––
Class Y Shares
Fiscal period ended 9-30-2010       (unaudited)(2)			10.00		0.08	(3)		1.21	(3)		1.29		––		––		––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(2)For the period from May 3, 2010 (commencement of operations of the class) through September 30, 2010.

(3)Based on average weekly shares outstanding.

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

(5)Annualized.

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Fiscal period ended       9-30-2010 (unaudited)(2)	$	11.29		12.90	%(4)	$	69			1.50	%(5)		- -0.30	%(5)		1.94	%(5)		- -0.74	%(5)		20	%
Class B Shares
Fiscal period ended       9-30-2010 (unaudited)(2)		11.25		12.50			2			2.37	(5)		- -1.12	(5)		2.65	(5)		- -1.40	(5)		20
Class C Shares
Fiscal period ended       9-30-2010 (unaudited)(2)		11.25		12.50			17			2.33	(5)		- -1.96	(5)		2.62	(5)		- -2.25	(5)		20
Class E Shares
Fiscal period ended       9-30-2010 (unaudited)(2)		11.29		12.90	(4)		––	*		1.50	(5)		- -0.17	(5)		1.84	(5)		- -0.51	(5)		20
Class I Shares
Fiscal period ended       9-30-2010 (unaudited)(2)		11.30		13.00			17			1.25	(5)		- -0.07	(5)		1.69	(5)		- -0.51	(5)		20
Class R Shares
Fiscal period ended       9-30-2010 (unaudited)(2)		11.27		12.70			1			1.95	(5)		- -0.63	(5)		2.23	(5)		- -0.91	(5)		20
Class Y Shares
Fiscal period ended       9-30-2010 (unaudited)(2)		11.29		12.90			5			1.50	(5)		1.93	(5)		1.93	(5)		1.50	(5)		20

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY BALANCED FUND
	Net Asset Value, Beginning of Period			Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	16.73	$	0.08	(1)	$	(0.07	)(1)	$	0.01		$	(0.07	)	$	––
Fiscal year ended 3-31-2010			13.01		0.21	(1)		3.72	(1)		3.93			(0.21	)		––
Fiscal year ended 3-31-2009			16.64		0.16			(3.63	)		(3.47	)		(0.16	)		––
Fiscal year ended 3-31-2008			16.18		0.20			0.97			1.17			(0.20	)		(0.51	)
Fiscal year ended 3-31-2007			15.22		0.16			0.98			1.14			(0.18	)		––
Fiscal year ended 3-31-2006			14.00		0.15			1.21			1.36			(0.14	)		––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			16.67		0.02	(1)		(0.07	)(1)		(0.05	)		(0.01	)		––
Fiscal year ended 3-31-2010			12.97		0.08	(1)		3.71	(1)		3.79			(0.09	)		––
Fiscal year ended 3-31-2009			16.60		0.04			(3.64	)		(3.60	)		(0.03	)		––
Fiscal year ended 3-31-2008			16.14		0.04			0.97			1.01			(0.04	)		(0.51	)
Fiscal year ended 3-31-2007			15.18		0.01			0.98			0.99			(0.03	)		––
Fiscal year ended 3-31-2006			13.98		0.00			1.21			1.21			(0.01	)		––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			16.69		0.03	(1)		(0.07	)(1)		(0.04	)		(0.02	)		––
Fiscal year ended 3-31-2010			12.98		0.12	(1)		3.71	(1)		3.83			(0.12	)		––
Fiscal year ended 3-31-2009			16.61		0.07	(1)		(3.64	)(1)		(3.57	)		(0.06	)		––
Fiscal year ended 3-31-2008			16.15		0.07			0.97			1.04			(0.07	)		(0.51	)
Fiscal year ended 3-31-2007			15.20		0.04			0.97			1.01			(0.06	)		––
Fiscal year ended 3-31-2006			13.98		0.03			1.20			1.23			(0.01	)		––
Class E Shares(4)
Six-month period ended       9-30-2010 (unaudited)			16.74		0.09	(1)		(0.07	)(1)		0.02			(0.10	)		––
Fiscal year ended 3-31-2010			13.02		0.25	(1)		3.72	(1)		3.97			(0.25	)		––
Fiscal year ended 3-31-2009			16.65		0.21			(3.65	)		(3.44	)		(0.19	)		––
Fiscal year ended 3-31-2008(5)			16.21		0.24			0.94			1.18			(0.23	)		(0.51	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			16.74		0.10	(1)		(0.06	)(1)		0.04			(0.12	)		––
Fiscal year ended 3-31-2010			13.01		0.20	(1)		3.80	(1)		4.00			(0.27	)		––
Fiscal year ended 3-31-2009			16.65		0.09			(3.52	)		(3.43	)		(0.21	)		––
Fiscal year ended 3-31-2008(5)			16.21		0.26			0.95			1.21			(0.26	)		(0.51	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			16.73		0.09	(1)		(0.07	)(1)		0.02			(0.08	)		––
Fiscal year ended 3-31-2010			13.01		0.24	(1)		3.71	(1)		3.95			(0.23	)		––
Fiscal year ended 3-31-2009			16.64		0.19			(3.65	)		(3.46	)		(0.17	)		––
Fiscal year ended 3-31-2008			16.18		0.22			0.97			1.19			(0.22	)		(0.51	)
Fiscal year ended 3-31-2007			15.22		0.18			0.98			1.16			(0.20	)		––
Fiscal year ended 3-31-2006			14.00		0.17			1.21			1.38			(0.16	)		––

*Not shown due to rounding.

(1)Based on average weekly shares outstanding.

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

(3)Annualized.

(4)Class is closed to investment.

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets			Ratio of Net Investment Income to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	(0.07	)	$	16.67		0.09	%(2)	$	87			1.32	%(3)		1.00	%(3)		26	%
Fiscal year ended 3-31-2010			(0.21	)		16.73		30.35	(2)		81			1.37			1.38			57
Fiscal year ended 3-31-2009			(0.16	)		13.01		- -20.98	(2)		68			1.36			1.12			57
Fiscal year ended 3-31-2008			(0.71	)		16.64		7.05	(2)		63			1.38			1.16			9
Fiscal year ended 3-31-2007			(0.18	)		16.18		7.53	(2)		59			1.39			1.03			23
Fiscal year ended 3-31-2006			(0.14	)		15.22		9.71	(2)		57			1.42			1.00			49
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			(0.01	)		16.61		- -0.31			8			2.13	(3)		0.19	(3)		26
Fiscal year ended 3-31-2010			(0.09	)		16.67		29.26			7			2.20			0.53			57
Fiscal year ended 3-31-2009			(0.03	)		12.97		- -21.73			4			2.28			0.22			57
Fiscal year ended 3-31-2008			(0.55	)		16.60		6.08			3			2.30			0.24			9
Fiscal year ended 3-31-2007			(0.03	)		16.14		6.49			3			2.39			0.03			23
Fiscal year ended 3-31-2006			(0.01	)		15.18		8.62			2			2.41			0.01			49
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			(0.02	)		16.63		- -0.24			47			1.93	(3)		0.39	(3)		26
Fiscal year ended 3-31-2010			(0.12	)		16.69		29.59			42			1.99			0.78			57
Fiscal year ended 3-31-2009			(0.06	)		12.98		- -21.53			49			1.96			0.49			57
Fiscal year ended 3-31-2008			(0.58	)		16.61		6.27			4			2.11			0.42			9
Fiscal year ended 3-31-2007			(0.06	)		16.15		6.67			3			2.16			0.27			23
Fiscal year ended 3-31-2006			(0.01	)		15.20		8.80			2			2.25			0.21			49
Class E Shares(4)
Six-month period ended       9-30-2010 (unaudited)			(0.10	)		16.66		0.16	(2)		––	*		1.11	(3)		1.20	(3)		26
Fiscal year ended 3-31-2010			(0.25	)		16.74		30.66	(2)		––	*		1.12			1.62			57
Fiscal year ended 3-31-2009			(0.19	)		13.02		- -20.77	(2)		––	*		1.12			1.38			57
Fiscal year ended 3-31-2008(5)			(0.74	)		16.65		7.11	(2)		––	*		1.15	(3)		1.39	(3)		9	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			(0.12	)		16.66		0.28			3			0.99	(3)		1.33	(3)		26
Fiscal year ended 3-31-2010			(0.27	)		16.74		30.93			2			1.00			1.67			57
Fiscal year ended 3-31-2009			(0.21	)		13.01		- -20.72			––	*		0.99			1.34			57
Fiscal year ended 3-31-2008(5)			(0.77	)		16.65		7.25			––	*		1.04	(3)		1.51	(3)		9	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			(0.08	)		16.67		0.14			40			1.23	(3)		1.08	(3)		26
Fiscal year ended 3-31-2010			(0.23	)		16.73		30.51			40			1.24			1.52			57
Fiscal year ended 3-31-2009			(0.17	)		13.01		- -20.89			38			1.24			1.26			57
Fiscal year ended 3-31-2008			(0.73	)		16.64		7.16			27			1.28			1.27			9
Fiscal year ended 3-31-2007			(0.20	)		16.18		7.67			28			1.26			1.16			23
Fiscal year ended 3-31-2006			(0.16	)		15.22		9.89			38			1.26			1.15			49

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ENERGY FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	11.11	$	(0.02	)(2)	$	(0.09	)(2)	$	(0.11	)	$	––	$	––		$	––
Fiscal year ended 3-31-2010			7.27		(0.04	)(2)		3.88	(2)		3.84			––		––			––
Fiscal year ended 3-31-2009			13.67		(0.05	)(2)		(6.35	)(2)		(6.40	)		––		––			––
Fiscal year ended 3-31-2008			10.35		(0.07	)(2)		3.41	(2)		3.34			––		(0.02	)		(0.02	)
Fiscal year ended 3-31-2007(5)			10.00		(0.09	)		0.44			0.35			––		––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			10.77		(0.07	)(2)		(0.09	)(2)		(0.16	)		––		––			––
Fiscal year ended 3-31-2010			7.12		(0.14	)(2)		3.79	(2)		3.65			––		––			––
Fiscal year ended 3-31-2009			13.52		(0.16	)(2)		(6.24	)(2)		(6.40	)		––		––			––
Fiscal year ended 3-31-2008			10.29		(0.16	)(2)		3.39	(2)		3.23			––		––			––
Fiscal year ended 3-31-2007(5)			10.00		(0.13	)		0.42			0.29			––		––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			10.82		(0.06	)(2)		(0.08	)(2)		(0.14	)		––		––			––
Fiscal year ended 3-31-2010			7.14		(0.12	)(2)		3.80	(2)		3.68			––		––			––
Fiscal year ended 3-31-2009			13.55		(0.12	)(2)		(6.29	)(2)		(6.41	)		––		––			––
Fiscal year ended 3-31-2008			10.30		(0.14	)(2)		3.39	(2)		3.25			––		––			––
Fiscal year ended 3-31-2007(5)			10.00		(0.14	)		0.44			0.30			––		––			––
Class E Shares(6)
Six-month period ended       9-30-2010 (unaudited)			11.16		(0.01	)(2)		(0.08	)(2)		(0.09	)		––		––			––
Fiscal year ended 3-31-2010			7.29		(0.02	)(2)		3.89	(2)		3.87			––		––			––
Fiscal year ended 3-31-2009			13.69		(0.04	)(2)		(6.36	)(2)		(6.40	)		––		––			––
Fiscal year ended 3-31-2008(7)			10.48		0.08	(2)		3.19	(2)		3.27			––		(0.06	)		(0.06	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			11.21		0.00	(2)		(0.09	)(2)		(0.09	)		––		––			––
Fiscal year ended 3-31-2010			7.32		(0.01	)(2)		3.90	(2)		3.89			––		––			––
Fiscal year ended 3-31-2009			13.72		(0.03	)(2)		(6.37	)(2)		(6.40	)		––		––			––
Fiscal year ended 3-31-2008(7)			10.51		0.10	(2)		3.19	(2)		3.29			––		(0.08	)		(0.08	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			11.16		(0.01	)(2)		(0.10	)(2)		(0.11	)		––		––			––
Fiscal year ended 3-31-2010			7.30		(0.04	)(2)		3.90	(2)		3.86			––		––			––
Fiscal year ended 3-31-2009			13.73		(0.07	)(2)		(6.36	)(2)		(6.43	)		––		––			––
Fiscal year ended 3-31-2008			10.38		(0.07	)(2)		3.46	(2)		3.39			––		(0.04	)		(0.04	)
Fiscal year ended 3-31-2007(5)			10.00		(0.08	)		0.46			0.38			––		––			––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 3, 2006 (commencement of operations of the class) through March 31, 2007.

(6)Class is closed to investment.

(7)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(8)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended      9-30-2010 (unaudited)		$	11.00		- -0.99	%(3)	$	63			1.60	%(4)		- -0.37	%(4)		1.74	%(4)		- -0.51	%(4)		11	%
Fiscal year ended 3-31-2010			11.11		52.82	(3)		63			1.60			- -0.42			1.79			- -0.61			15
Fiscal year ended 3-31-2009			7.27		-46.82	(3)		30			1.60			- -0.47			1.91			- -0.78			48
Fiscal year ended 3-31-2008			13.67		32.27	(3)		27			1.66			- -0.53			2.01			- -0.88			35
Fiscal year ended 3-31-2007(5)			10.35		3.50	(3)		5			2.74	(4)		- -1.30	(4)		3.58	(4)		- -2.14	(4)		11
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			10.61		- -1.49			3			2.58	(4)		- -1.35	(4)		––			––			11
Fiscal year ended 3-31-2010			10.77		51.26			3			2.60			- -1.40			2.68			- -1.48			15
Fiscal year ended 3-31-2009			7.12		-47.34			2			2.60			- -1.48			2.78			- -1.66			48
Fiscal year ended 3-31-2008			13.52		31.39			2			2.44			- -1.26			2.79			- -1.61			35
Fiscal year ended 3-31-2007(5)			10.29		2.90			1			3.13	(4)		- -1.64	(4)		3.97	(4)		- -2.48	(4)		11
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			10.68		- -1.29			14			2.37	(4)		- -1.13	(4)		––			––			11
Fiscal year ended 3-31-2010			10.82		51.54			13			2.38			- -1.19			––			––			15
Fiscal year ended 3-31-2009			7.14		-47.31			9			2.50			- -1.30			2.50			- -1.30			48
Fiscal year ended 3-31-2008			13.55		31.55			3			2.28			- -1.09			2.63			- -1.44			35
Fiscal year ended 3-31-2007(5)			10.30		3.00			1			3.17	(4)		- -1.72	(4)		4.01	(4)		- -2.56	(4)		11
Class E Shares(6)
Six-month period ended       9-30-2010 (unaudited)			11.07		- -0.81	(3)		––	*		1.36	(4)		- -0.13	(4)		––			––			11
Fiscal year ended 3-31-2010			11.16		53.09	(3)		––	*		1.39			- -0.19			––			––			15
Fiscal year ended 3-31-2009			7.29		-46.75	(3)		––	*		1.46			- -0.38			1.46			- -0.38			48
Fiscal year ended 3-31-2008(7)			13.69		31.15	(3)		––	*		1.31	(4)		- -0.06	(4)		1.66	(4)		- -0.41	(4)		35	(8)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			11.12		- -0.80			4			1.25	(4)		0.01	(4)		––			––			11
Fiscal year ended 3-31-2010			11.21		53.14			2			1.24			- -0.13			––			––			15
Fiscal year ended 3-31-2009			7.32		-46.65			––	*		1.39			- -0.27			1.39			- -0.27			48
Fiscal year ended 3-31-2008(7)			13.72		31.26			––	*		1.19	(4)		0.05	(4)		1.54	(4)		- -0.30	(4)		35	(8)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			11.05		- -0.99			6			1.52	(4)		- -0.28	(4)		––			––			11
Fiscal year ended 3-31-2010			11.16		52.88			5			1.52			- -0.36			––			––			15
Fiscal year ended 3-31-2009			7.30		-46.83			2			1.60			- -0.59			1.65			- -0.64			48
Fiscal year ended 3-31-2008			13.73		32.67			5			1.55			- -0.51			1.90			- -0.86			35
Fiscal year ended 3-31-2007(5)			10.38		3.80			1			2.32	(4)		- -0.82	(4)		3.16	(4)		- -1.66	(4)		11

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL NATURAL RESOURCES FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	18.60	$	(0.01	)(2)	$	(0.78	)(2)	$	(0.79	)	$	––		$	––		$	––
Fiscal year ended 3-31-2010			11.08		(0.10	)(2)		7.62	(2)		7.52			––			––			––
Fiscal year ended 3-31-2009			36.53		0.02			(21.13	)		(21.11	)		(0.03	)		(4.31	)		(4.34	)
Fiscal year ended 3-31-2008			31.67		0.05	(2)		8.54	(2)		8.59			(0.52	)		(3.21	)		(3.73	)
Fiscal year ended 3-31-2007			30.13		0.17	(2)		4.40	(2)		4.57			(0.16	)		(2.87	)		(3.03	)
Fiscal year ended 3-31-2006			22.65		0.12			8.88			9.00			––			(1.52	)		(1.52	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			16.77		(0.07	)(2)		(0.71	)(2)		(0.78	)		––			––			––
Fiscal year ended 3-31-2010			10.08		(0.21	)(2)		6.90	(2)		6.69			––			––			––
Fiscal year ended 3-31-2009			34.27		(0.10	)		(19.82	)		(19.92	)		––			(4.27	)		(4.27	)
Fiscal year ended 3-31-2008			29.78		(0.23	)(2)		8.00	(2)		7.77			(0.07	)		(3.21	)		(3.28	)
Fiscal year ended 3-31-2007			28.57		(0.05	)		4.13			4.08			––			(2.87	)		(2.87	)
Fiscal year ended 3-31-2006			21.72		0.03			8.34			8.37			––			(1.52	)		(1.52	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			16.25		(0.06	)(2)		(0.69	)(2)		(0.75	)		––			––			––
Fiscal year ended 3-31-2010			9.75		(0.18	)(2)		6.68	(2)		6.50			––			––			––
Fiscal year ended 3-31-2009			33.47		(0.13	)		(19.32	)		(19.45	)		––			(4.27	)		(4.27	)
Fiscal year ended 3-31-2008			29.19		(0.20	)(2)		7.86	(2)		7.66			(0.17	)		(3.21	)		(3.38	)
Fiscal year ended 3-31-2007			28.04		(0.03	)		4.05			4.02			––			(2.87	)		(2.87	)
Fiscal year ended 3-31-2006			21.32		0.02			8.22			8.24			––			(1.52	)		(1.52	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			18.76		0.01	(2)		(0.79	)(2)		(0.78	)		––			––			––
Fiscal year ended 3-31-2010			11.16		(0.07	)(2)		7.67	(2)		7.60			––			––			––
Fiscal year ended 3-31-2009			36.41		(0.06	)(2)		(20.98	)(2)		(21.04	)		––			(4.21	)		(4.21	)
Fiscal year ended 3-31-2008(5)			32.00		0.03			7.94			7.97			(0.35	)		(3.21	)		(3.56	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			18.90		0.03	(2)		(0.80	)(2)		(0.77	)		––			––			––
Fiscal year ended 3-31-2010			11.22		(0.04	)(2)		7.72	(2)		7.68			––			––			––
Fiscal year ended 3-31-2009			36.74		0.03	(2)		(21.19	)(2)		(21.16	)		(0.04	)		(4.32	)		(4.36	)
Fiscal year ended 3-31-2008(5)			32.16		0.05	(2)		8.51	(2)		8.56			(0.77	)		(3.21	)		(3.98	)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)			18.47		(0.02	)(2)		(0.78	)(2)		(0.80	)		––			––			––
Fiscal year ended 3-31-2010			11.02		(0.12	)(2)		7.57	(2)		7.45			––			––			––
Fiscal year ended 3-31-2009			36.30		(0.05	)(2)		(20.94	)(2)		(20.99	)		––			(4.29	)		(4.29	)
Fiscal year ended 3-31-2008			31.62		0.24			8.23			8.47			(0.58	)		(3.21	)		(3.79	)
Fiscal year ended 3-31-2007			30.10		0.05	(2)		4.44	(2)		4.49			(0.10	)		(2.87	)		(2.97	)
Fiscal year ended 3-31-2006(7)			26.11		0.06			3.93			3.99			––			––			––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			18.79		0.01	(2)		(0.79	)(2)		(0.78	)		––			––			––
Fiscal year ended 3-31-2010			11.17		(0.06	)(2)		7.68	(2)		7.62			––			––			––
Fiscal year ended 3-31-2009			36.62		0.10			(21.21	)		(21.11	)		(0.02	)		(4.32	)		(4.34	)
Fiscal year ended 3-31-2008			31.84		0.17			8.50			8.67			(0.68	)		(3.21	)		(3.89	)
Fiscal year ended 3-31-2007			30.27		0.21	(2)		4.43	(2)		4.64			(0.20	)		(2.87	)		(3.07	)
Fiscal year ended 3-31-2006			22.70		0.24	(2)		8.85	(2)		9.09			––			(1.52	)		(1.52	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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.

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)	$	17.81		-4.25	%(3)	$	2,464			1.44	%(4)		- -0.07	%(4)		––	%		––	%		47	%
Fiscal year ended 3-31-2010		18.60		67.87	(3)		2,822			1.45			- -0.58			––			––			112
Fiscal year ended 3-31-2009		11.08		- -56.82	(3)		1,640			1.40			- -0.03			––			––			191
Fiscal year ended 3-31-2008		36.53		26.65	(3)		5,168			1.27			0.14			––			––			142
Fiscal year ended 3-31-2007		31.67		15.47	(3)		3,360			1.31			0.57			––			––			106
Fiscal year ended 3-31-2006		30.13		40.76	(3)		2,343			1.40			0.73			––			––			104
Class B Shares
Six-month period ended       9-30-2010 (unaudited)		15.99		-4.65			159			2.27	(4)		- -0.90	(4)		––			––			47
Fiscal year ended 3-31-2010		16.77		66.37			186			2.28			- -1.39			––			––			112
Fiscal year ended 3-31-2009		10.08		- -57.15			117			2.19			- -0.83			––			––			191
Fiscal year ended 3-31-2008		34.27		25.64			345			2.07			- -0.64			––			––			142
Fiscal year ended 3-31-2007		29.78		14.55			272			2.12			- -0.24			––			––			106
Fiscal year ended 3-31-2006		28.57		39.59			223			2.23			- -0.10			––			––			104
Class C Shares
Six-month period ended       9-30-2010 (unaudited)		15.50		-4.62			855			2.12	(4)		- -0.75	(4)		––			––			47
Fiscal year ended 3-31-2010		16.25		66.67			997			2.13			- -1.26			––			––			112
Fiscal year ended 3-31-2009		9.75		- -57.10			539			2.10			- -0.74			––			––			191
Fiscal year ended 3-31-2008		33.47		25.72			1,749			1.99			- -0.58			––			––			142
Fiscal year ended 3-31-2007		29.19		14.65			1,138			2.04			- -0.16			––			––			106
Fiscal year ended 3-31-2006		28.04		39.72			801			2.15			- -0.02			––			––			104
Class E Shares
Six-month period ended       9-30-2010 (unaudited)		17.98		-4.16	(3)		6			1.27	(4)		0.09	(4)		2.32	(4)		- -0.96	(4)		47
Fiscal year ended 3-31-2010		18.76		68.10	(3)		6			1.27			- -0.40			2.55			- -1.68			112
Fiscal year ended 3-31-2009		11.16		- -56.83	(3)		2			1.66			- -0.29			2.68			- -1.31			191
Fiscal year ended 3-31-2008(5)		36.41		24.42	(3)		3			2.29	(4)		- -1.02	(4)		––			––			142	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)		18.13		-4.07			1,118			1.04	(4)		0.32	(4)		––			––			47
Fiscal year ended 3-31-2010		18.90		68.45			1,074			1.04			- -0.21			––			––			112
Fiscal year ended 3-31-2009		11.22		- -56.60			232			1.05			0.22			––			––			191
Fiscal year ended 3-31-2008(5)		36.74		26.14			71			1.00	(4)		0.30	(4)		––			––			142	(6)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)		17.67		-4.33			57			1.57	(4)		- -0.21	(4)		––			––			47
Fiscal year ended 3-31-2010		18.47		67.60			56			1.57			- -0.71			––			––			112
Fiscal year ended 3-31-2009		11.02		- -56.86			22			1.57			- -0.22			––			––			191
Fiscal year ended 3-31-2008		36.30		26.31			25			1.55			- -0.22			––			––			142
Fiscal year ended 3-31-2007		31.62		15.20			4			1.58			0.23			––			––			106
Fiscal year ended 3-31-2006(7)		30.10		15.28			––	*		1.69	(4)		0.82	(4)		––			––			104	(8)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)		18.01		-4.15			543			1.20	(4)		0.17	(4)		1.30	(4)		0.07	(4)		47
Fiscal year ended 3-31-2010		18.79		68.22			667			1.20			- -0.36			1.29			- -0.45			112
Fiscal year ended 3-31-2009		11.17		- -56.67			278			1.20			0.16			1.28			0.08			191
Fiscal year ended 3-31-2008		36.62		26.74			813			1.20			0.16			1.26			0.11			142
Fiscal year ended 3-31-2007		31.84		15.63			311			1.20			0.66			1.27			0.59			106
Fiscal year ended 3-31-2006		30.27		41.07			116			1.20			0.91			1.35			0.76			104

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

(7)For the period from December 29, 2005 (commencement of operations of the class) through March 31, 2006.

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

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY REAL ESTATE SECURITIES FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	15.95	$	0.09	(2)	$	1.23	(2)	$	1.32		$	(0.06	)	$	––		$	(0.06	)
Fiscal year ended 3-31-2010			8.31		0.19	(2)		7.64	(2)		7.83			(0.19	)		––			(0.19	)
Fiscal year ended 3-31-2009			19.34		0.23			(11.00	)		(10.77	)		(0.26	)		––	*		(0.26	)
Fiscal year ended 3-31-2008			26.14		0.19			(4.87	)		(4.68	)		(0.15	)		(1.97	)		(2.12	)
Fiscal year ended 3-31-2007			23.11		0.10			4.05			4.15			(0.15	)		(0.97	)		(1.12	)
Fiscal year ended 3-31-2006			18.13		0.15			5.81			5.96			(0.18	)		(0.80	)		(0.98	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			15.82		(0.02	)(2)		1.22	(2)		1.20			––			––			––
Fiscal year ended 3-31-2010			8.24		0.03	(2)		7.56	(2)		7.59			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2009			19.15		0.00			(10.85	)		(10.85	)		(0.06	)		––	*		(0.06	)
Fiscal year ended 3-31-2008			25.91		(0.08	)		(4.79	)		(4.87	)		(0.01	)		(1.88	)		(1.89	)
Fiscal year ended 3-31-2007			23.00		(0.09	)		3.97			3.88			––			(0.97	)		(0.97	)
Fiscal year ended 3-31-2006			18.08		0.01			5.72			5.73			(0.01	)		(0.80	)		(0.81	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			15.86		0.02	(2)		1.21	(2)		1.23			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2010			8.26		0.09	(2)		7.60	(2)		7.69			(0.09	)		––			(0.09	)
Fiscal year ended 3-31-2009			19.22		0.09			(10.92	)		(10.83	)		(0.12	)		(0.01	)		(0.13	)
Fiscal year ended 3-31-2008			26.01		0.00			(4.85	)		(4.85	)		(0.02	)		(1.92	)		(1.94	)
Fiscal year ended 3-31-2007			23.04		(0.06	)		4.00			3.94			––			(0.97	)		(0.97	)
Fiscal year ended 3-31-2006			18.10		0.03			5.73			5.76			(0.02	)		(0.80	)		(0.82	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			15.96		0.10	(2)		1.22	(2)		1.32			(0.07	)		––			(0.07	)
Fiscal year ended 3-31-2010			8.32		0.19	(2)		7.70	(2)		7.89			(0.25	)		––			(0.25	)
Fiscal year ended 3-31-2009			19.36		0.18			(11.00	)		(10.82	)		(0.22	)		––	*		(0.22	)
Fiscal year ended 3-31-2008(5)			26.37		(0.32	)(2)		(4.78	)(2)		(5.10	)		(0.03	)		(1.88	)		(1.91	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			16.00		0.15	(2)		1.23	(2)		1.38			(0.11	)		––			(0.11	)
Fiscal year ended 3-31-2010			8.34		0.06	(2)		7.90	(2)		7.96			(0.30	)		––			(0.30	)
Fiscal year ended 3-31-2009			19.43		0.32			(11.03	)		(10.71	)		(0.37	)		(0.01	)		(0.38	)
Fiscal year ended 3-31-2008(5)			26.38		0.18	(2)		(4.92	)(2)		(4.74	)		(0.24	)		(1.97	)		(2.21	)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)			15.95		0.10	(2)		1.23	(2)		1.33			(0.07	)		––			(0.07	)
Fiscal year ended 3-31-2010			8.31		0.15	(2)		7.73	(2)		7.88			(0.24	)		––			(0.24	)
Fiscal year ended 3-31-2009			19.35		0.12	(2)		(10.86	)(2)		(10.74	)		(0.29	)		(0.01	)		(0.30	)
Fiscal year ended 3-31-2008			26.14		0.12			(4.81	)		(4.69	)		(0.13	)		(1.97	)		(2.10	)
Fiscal year ended 3-31-2007			23.11		0.15			3.98			4.13			(0.13	)		(0.97	)		(1.10	)
Fiscal year ended 3-31-2006(7)			20.55		(0.20	)		2.79			2.59			(0.03	)		––			(0.03	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			15.95		0.12	(2)		1.23	(2)		1.35			(0.09	)		––			(0.09	)
Fiscal year ended 3-31-2010			8.31		0.26	(2)		7.66	(2)		7.92			(0.28	)		––			(0.28	)
Fiscal year ended 3-31-2009			19.35		0.26			(10.95	)		(10.69	)		(0.34	)		(0.01	)		(0.35	)
Fiscal year ended 3-31-2008			26.15		0.36			(4.99	)		(4.63	)		(0.20	)		(1.97	)		(2.17	)
Fiscal year ended 3-31-2007			23.12		0.23			3.97			4.20			(0.20	)		(0.97	)		(1.17	)
Fiscal year ended 3-31-2006			18.14		0.27			5.75			6.02			(0.24	)		(0.80	)		(1.04	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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.

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)	$	17.21		8.26	%(3)	$	203			1.84	%(4)		1.07	%(4)		––	%		––	%		36	%
Fiscal year ended 3-31-2010		15.95		94.78	(3)		178			2.09			1.51			––			––			72
Fiscal year ended 3-31-2009		8.31		- -56.07	(3)		100			1.93			1.41			––			––			42
Fiscal year ended 3-31-2008		19.34		- -18.13	(3)		253			1.67			0.70			––			––			27
Fiscal year ended 3-31-2007		26.14		18.09	(3)		395			1.57			0.54			––			––			35
Fiscal year ended 3-31-2006		23.11		33.53	(3)		256			1.64			0.91			––			––			35
Class B Shares
Six-month period ended       9-30-2010 (unaudited)		17.02		7.59			7			3.10	(4)		- -0.19	(4)		––			––			36
Fiscal year ended 3-31-2010		15.82		92.14			7			3.53			0.20			––			––			72
Fiscal year ended 3-31-2009		8.24		- -56.69			4			3.18			0.29			––			––			42
Fiscal year ended 3-31-2008		19.15		- -18.98			13			2.71			- -0.24			––			––			27
Fiscal year ended 3-31-2007		25.91		16.93			22			2.57			- -0.42			––			––			35
Fiscal year ended 3-31-2006		23.00		32.19			15			2.66			0.01			––			––			35
Class C Shares
Six-month period ended       9-30-2010 (unaudited)		17.08		7.78			11			2.61	(4)		0.30	(4)		––			––			36
Fiscal year ended 3-31-2010		15.86		93.33			9			2.88			0.72			––			––			72
Fiscal year ended 3-31-2009		8.26		- -56.47			5			2.79			0.57			––			––			42
Fiscal year ended 3-31-2008		19.22		- -18.84			13			2.50			0.03			––			––			27
Fiscal year ended 3-31-2007		26.01		17.17			26			2.39			- -0.28			––			––			35
Fiscal year ended 3-31-2006		23.04		32.38			17			2.46			0.15			––			––			35
Class E Shares
Six-month period ended       9-30-2010 (unaudited)		17.21		8.28	(3)		1			1.67	(4)		1.24	(4)		2.66	(4)		0.25	(4)		36
Fiscal year ended 3-31-2010		15.96		95.63	(3)		1			1.67			1.57			3.45			- -0.21			72
Fiscal year ended 3-31-2009		8.32		- -56.07	(3)		––	*		2.12			1.01			3.33			- -0.20			42
Fiscal year ended 3-31-2008(5)		19.36		- -19.55	(3)		––	*		2.77	(4)		- -1.47	(4)		––			––			27	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)		17.27		8.67			5			1.16	(4)		1.79	(4)		––			––			36
Fiscal year ended 3-31-2010		16.00		96.35			4			1.27			0.34			––			––			72
Fiscal year ended 3-31-2009		8.34		- -55.70			1			1.16			2.13			––			––			42
Fiscal year ended 3-31-2008(5)		19.43		- -18.17			1			1.17	(4)		0.75	(4)		––			––			27	(6)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)		17.21		8.34			1			1.71	(4)		1.23	(4)		––			––			36
Fiscal year ended 3-31-2010		15.95		95.59			––	*		1.73			1.27			––			––			72
Fiscal year ended 3-31-2009		8.31		- -55.94			––	*		1.70			1.04			––			––			42
Fiscal year ended 3-31-2008		19.35		- -18.12			––	*		1.68			0.26			––			––			27
Fiscal year ended 3-31-2007		26.14		17.98			––	*		1.68			0.43			––			––			35
Fiscal year ended 3-31-2006(7)		23.11		12.59			––	*		1.73	(4)		- -3.64	(4)		––			––			35	(8)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)		17.21		8.50			125			1.40	(4)		1.53	(4)		––			––			36
Fiscal year ended 3-31-2010		15.95		96.18			109			1.41			2.09			––			––			72
Fiscal year ended 3-31-2009		8.31		- -55.78			54			1.39			1.77			––			––			42
Fiscal year ended 3-31-2008		19.35		- -17.89			120			1.38			1.19			––			––			27
Fiscal year ended 3-31-2007		26.15		18.32			265			1.37			0.94			––			––			35
Fiscal year ended 3-31-2006		23.12		33.86			216			1.39			1.27			––			––			35

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

(7)For the period from December 29, 2005 (commencement of operations of the class) through March 31, 2006.

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

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SCIENCE AND TECHNOLOGY FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Distributions From Return of Capital
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	29.35	$	(0.09	)(2)	$	(0.02	)(2)	$	(0.11	)	$	––	$	––		$	––
Fiscal year ended 3-31-2010			21.07		(0.07	)(2)		8.52	(2)		8.45			––		(0.17	)		––
Fiscal year ended 3-31-2009			27.87		(0.10	)		(5.54	)		(5.64	)		––		(1.15	)		(0.01	)
Fiscal year ended 3-31-2008			28.70		(0.17	)		2.78			2.61			––		(3.44	)		––
Fiscal year ended 3-31-2007			27.08		(0.23	)		1.91			1.68			––		(0.06	)		––
Fiscal year ended 3-31-2006			21.34		(0.30	)		6.04			5.74			––		––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			26.62		(0.20	)(2)		(0.03	)(2)		(0.23	)		––		––			––
Fiscal year ended 3-31-2010			19.19		(0.31	)(2)		7.74	(2)		7.43			––		––			––
Fiscal year ended 3-31-2009			25.68		(0.29	)		(5.13	)		(5.42	)		––		(1.07	)		––	*
Fiscal year ended 3-31-2008			26.66		(0.28	)		2.42			2.14			––		(3.12	)		––
Fiscal year ended 3-31-2007			25.42		(0.48	)		1.78			1.30			––		(0.06	)		––
Fiscal year ended 3-31-2006			20.24		(0.40	)		5.58			5.18			––		––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			27.29		(0.18	)(2)		(0.03	)(2)		(0.21	)		––		––			––
Fiscal year ended 3-31-2010			19.65		(0.26	)(2)		7.93	(2)		7.67			––		(0.03	)		––
Fiscal year ended 3-31-2009			26.21		(0.19	)		(5.28	)		(5.47	)		––		(1.08	)		(0.01	)
Fiscal year ended 3-31-2008			27.14		(0.26	)		2.50			2.24			––		(3.17	)		––
Fiscal year ended 3-31-2007			25.84		(0.49	)		1.85			1.36			––		(0.06	)		––
Fiscal year ended 3-31-2006			20.53		(0.43	)		5.74			5.31			––		––			––
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			29.33		(0.09	)(2)		(0.02	)(2)		(0.11	)		––		––			––
Fiscal year ended 3-31-2010			21.05		(0.06	)(2)		8.52	(2)		8.46			––		(0.18	)		––
Fiscal year ended 3-31-2009			27.76		(0.10	)(2)		(5.56	)(2)		(5.66	)		––		(1.04	)		(0.01	)
Fiscal year ended 3-31-2008(5)			28.79		(0.44	)(2)		2.69	(2)		2.25			––		(3.28	)		––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			31.16		(0.04	)(2)		(0.02	)(2)		(0.06	)		––		––			––
Fiscal year ended 3-31-2010			22.33		0.01	(2)		9.05	(2)		9.06			––		(0.23	)		––
Fiscal year ended 3-31-2009			29.35		0.08	(2)		(5.92	)(2)		(5.84	)		––		(1.17	)		(0.01	)
Fiscal year ended 3-31-2008(5)			29.71		0.02	(2)		3.16	(2)		3.18			––		(3.54	)		––
Class R Shares
Six-month period ended       9-30-2010 (unaudited)			29.27		(0.12	)(2)		(0.02	)(2)		(0.14	)		––		––			––
Fiscal year ended 3-31-2010			21.02		(0.13	)(2)		8.52	(2)		8.39			––		(0.14	)		––
Fiscal year ended 3-31-2009			27.81		(0.05	)(2)		(5.60	)(2)		(5.65	)		––		(1.13	)		(0.01	)
Fiscal year ended 3-31-2008			28.64		(0.15	)(2)		2.68	(2)		2.53			––		(3.36	)		––
Fiscal year ended 3-31-2007			27.07		(0.27	)		1.90			1.63			––		(0.06	)		––
Fiscal year ended 3-31-2006(7)			25.77		(0.09	)		1.39			1.30			––		––			––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			30.54		(0.08	)(2)		(0.02	)(2)		(0.10	)		––		––			––
Fiscal year ended 3-31-2010			21.90		(0.04	)(2)		8.87	(2)		8.83			––		(0.19	)		––
Fiscal year ended 3-31-2009			28.87		(0.10	)		(5.71	)		(5.81	)		––		(1.15	)		(0.01	)
Fiscal year ended 3-31-2008			29.62		(0.09	)(2)		2.81	(2)		2.72			––		(3.47	)		––
Fiscal year ended 3-31-2007			27.92		(0.22	)		1.98			1.76			––		(0.06	)		––
Fiscal year ended 3-31-2006			21.96		(0.27	)		6.23			5.96			––		––			––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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.

	Total Distributions				Net Asset Value, End of Period		Total Return		Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	––		$	29.24	- -0.37	%(3)	$	430			1.44	%(4)		- -0.64	%(4)		––	%		––	%		18	%
Fiscal year ended 3-31-2010			(0.17	)		29.35	40.13	(3)		437			1.50			- -0.28			––			––			59
Fiscal year ended 3-31-2009			(1.16	)		21.07	- -19.86	(3)		245			1.50			- -0.21			––			––			46
Fiscal year ended 3-31-2008			(3.44	)		27.87	8.27	(3)		245			1.43			- -0.39			––			––			96
Fiscal year ended 3-31-2007			(0.06	)		28.70	6.22	(3)		185			1.47			- -0.88			––			––			81
Fiscal year ended 3-31-2006			––			27.08	26.90	(3)		164			1.51			- -1.02			––			––			112
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			––			26.39	- -0.86			25			2.34	(4)		- -1.55	(4)		––			––			18
Fiscal year ended 3-31-2010			––			26.62	38.72			24			2.51			- -1.29			––			––			59
Fiscal year ended 3-31-2009			(1.07	)		19.19	- -20.71			15			2.56			- -1.30			––			––			46
Fiscal year ended 3-31-2008			(3.12	)		25.68	7.19			20			2.42			- -1.39			––			––			96
Fiscal year ended 3-31-2007			(0.06	)		26.66	5.13			19			2.51			- -1.91			––			––			81
Fiscal year ended 3-31-2006			––			25.42	25.59			18			2.58			- -2.10			––			––			112
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			––			27.08	- -0.77			183			2.18	(4)		- -1.38	(4)		––			––			18
Fiscal year ended 3-31-2010			(0.03	)		27.29	39.05			183			2.28			- -1.07			––			––			59
Fiscal year ended 3-31-2009			(1.09	)		19.65	- -20.51			98			2.30			- -1.04			––			––			46
Fiscal year ended 3-31-2008			(3.17	)		26.21	7.38			122			2.26			- -1.23			––			––			96
Fiscal year ended 3-31-2007			(0.06	)		27.14	5.32			109			2.33			- -1.74			––			––			81
Fiscal year ended 3-31-2006			––			25.84	25.86			113			2.38			- -1.90			––			––			112
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			––			29.22	- -0.37	(3)		4			1.43	(4)		- -0.63	(4)		2.18	(4)		- -1.38	(4)		18
Fiscal year ended 3-31-2010			(0.18	)		29.33	40.21	(3)		4			1.43			- -0.24			2.56			- -1.37			59
Fiscal year ended 3-31-2009			(1.05	)		21.05	- -20.05	(3)		2			1.76			- -0.43			2.69			- -1.36			46
Fiscal year ended 3-31-2008(5)			(3.28	)		27.76	6.98	(3)		1			2.61	(4)		- -1.46	(4)		––			––			96	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			––			31.10	- -0.19			134			1.08	(4)		- -0.29	(4)		––			––			18
Fiscal year ended 3-31-2010			(0.23	)		31.16	40.65			122			1.11			0.02			––			––			59
Fiscal year ended 3-31-2009			(1.18	)		22.33	- -19.50			19			1.07			0.34			––			––			46
Fiscal year ended 3-31-2008(5)			(3.54	)		29.35	9.89			9			1.10	(4)		0.05	(4)		––			––			96	(6)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)			––			29.13	- -0.48			22			1.62	(4)		- -0.82	(4)		––			––			18
Fiscal year ended 3-31-2010			(0.14	)		29.27	39.95			19			1.64			- -0.48			––			––			59
Fiscal year ended 3-31-2009			(1.14	)		21.02	- -19.95			6			1.62			- -0.22			––			––			46
Fiscal year ended 3-31-2008			(3.36	)		27.81	8.03			2			1.63			- -0.50			––			––			96
Fiscal year ended 3-31-2007			(0.06	)		28.64	6.03			––	*		1.65			- -1.08			––			––			81
Fiscal year ended 3-31-2006(7)			––			27.07	5.05			––	*		1.68	(4)		- -1.29	(4)		––			––			112	(8)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			––			30.44	- -0.33			335			1.33	(4)		- -0.52	(4)		––			––			18
Fiscal year ended 3-31-2010			(0.19	)		30.54	40.36			352			1.35			- -0.13			––			––			59
Fiscal year ended 3-31-2009			(1.16	)		21.90	- -19.74			193			1.33			- -0.03			––			––			46
Fiscal year ended 3-31-2008			(3.47	)		28.87	8.38			155			1.34			- -0.28			––			––			96
Fiscal year ended 3-31-2007			(0.06	)		29.62	6.32			78			1.35			- -0.76			––			––			81
Fiscal year ended 3-31-2006			––			27.92	27.14			57			1.37			- -0.88			––			––			112

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

(7)For the period from December 29, 2005 (commencement of operations of the class) through March 31, 2006.

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

See Accompanying Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS

Ivy Funds (amounts in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

On April 1, 2010, each of the 33 series of Ivy Funds, a Delaware statutory trust (Trust), became the successor fund to corresponding series of a Maryland corporation and a Massachusetts business trust pursuant to a Plan of Reorganization and Termination that was approved by shareholders of each fund (each, a Reorganization and collectively, the Reorganizations). The Reorganizations were accomplished through tax-free exchanges of shares, which had no impact on net assets and number of shares outstanding. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Ivy Asset Strategy Fund, Ivy Asset Strategy New Opportunities Fund, Ivy Balanced Fund, Ivy Energy Fund, Ivy Global Natural Resources Fund, Ivy Real Estate Securities Fund and Ivy Science and Technology Fund (each, a Fund) are series of the Trust and are the only series of the Trust included in these financial statements. The investment objective(s), policies and risk facto rs of each Fund are described more fully in the Funds' Prospectus and Statement of Additional Information. Each Fund's investment manager is Ivy Investment Management Company (IICO or the Manager).

Each Fund offers Class A, Class B, Class C, Class I and Class Y shares. Certain Funds may offer Class E and/or Class R shares. Class A and Class E shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B and Class C shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class I, Class R and Class Y shares are sold without either a front-end sales charge or a CDSC. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Net investment income, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer agent and shareholder servicing fees, directly attributable to that class. Class A, B, C, E, R and Y have a distribution and service plan. Class I shares are not included in the plan. Class B shares will automatically convert to Class A shares 96 months after the date of purchase.

The following is a summary of significant accounting policies consistently followed by each Fund.

Securities Valuation. Each Fund's investments are reported at fair value. Each Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the NYSE), normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

Equity securities traded on U.S. or foreign securities exchanges or included in a national market system are valued at the official closing price at the close of each business day unless otherwise stated below. Over-the-counter equity securities and listed securities for which no price is readily available are valued at the average of the last bid and asked prices.

Security prices for fixed-income securities are typically based on quotes that are obtained from an independent pricing service authorized by the Board of Trustees. To determine values of fixed-income securities, the independent pricing service utilizes such factors as current quotations by broker/dealers, coupon, maturity, quality, type of issue, trading characteristics, and other yield and risk factors it deems relevant in determining valuations. Securities that cannot be valued by the independent pricing service may be valued using quotes obtained from dealers that make markets in the securities.

Precious metals are valued at the last traded spot price prior to the close of the NYSE.

Listed options are valued at the closing price by the independent pricing service unless the price is unavailable, in which case they are valued at either the mean between the last bid and asked price or using a valuation obtained from a dealer in that security. Over-the-counter options are valued at the price provided by a dealer in that security. Swaps are valued by the independent pricing service unless the price is unavailable, in which case they are valued at the price provided by a dealer in that security. Futures contracts traded on an exchange are generally valued at the settlement price. Mutual funds, including investment funds, typically are valued at the net asset value reported as of the valuation date.

Forward foreign currency contracts are valued daily based upon the closing prices of the forward currency rates determined at the close of the NYSE.

Senior loans are valued using a price or composite price from one or more brokers or dealers as obtained from an independent pricing service.

Short-term securities with maturities of 60 days or less are valued on the basis of amortized cost (which approximates market value), whereby a portfolio security is valued at its cost initially, and thereafter valued to reflect a constant amortization to maturity of any discount or premium.

Because many foreign markets close before the NYSE, events may occur between the close of the foreign market and the close of the NYSE that could have a material impact on the valuation of foreign securities. IICO, pursuant to procedures adopted by the Board of Trustees, evaluates the impact of these events and may adjust the valuation of foreign securities to reflect the fair value as of the close of the NYSE. In addition, all securities for which market values are not readily available or are deemed unreliable are appraised at fair value as determined in good faith under the supervision of the Board of Trustees.

Security Transactions and Related Investment Income. Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses are calculated on the identified cost basis. Interest income is recorded on the accrual basis and includes paydown gain (loss) and accretion of discounts and amortization of premiums. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Upon notification from issuers, some of the distributions received from a real estate investment trust or publicly traded partnership may be redesignated as a reduction of cost of the related investment and/or realized gain.

Securities on a When-Issued or Delayed Delivery Basis. Certain Funds may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis. "When-issued" or "delayed delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by a Fund on a when-issued basis normally take place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of a Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When a Fund engages in when-issued or delayed delivery tr ansactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield IICO, or the Fund's investment subadvisor, as applicable, consider advantageous. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The Fund may also sell securities that it purchased on a when-issued or delayed delivery basis prior to settlement of the original purchase.

Senior Loans. A Fund invests in senior secured corporate loans (senior loans) either as an original lender or as a purchaser of a loan assignment or a participation interest in a loan. Senior loans are generally made to U.S. and foreign borrowers that are corporations, partnerships, or other business entities. Senior loans are generally readily marketable, but some loans may be illiquid or may be subject to some restrictions on resale.

Certain senior loans contain provisions that obligate a Fund to fund future commitments at the borrower's discretion. At September 30, 2010, there were no such unfunded commitments.

Mortgage Dollar Roll Transactions. Certain Funds enter into dollar roll transactions on securities issued or to be issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, in which the Fund sells mortgage securities and simultaneously agrees to repurchase similar (same type, coupon and maturity) securities at a later date at an agreed upon price. During the period between the sale and repurchase, the Fund forgoes principal and interest paid on the mortgage securities sold. The Fund is compensated from negotiated fees paid by brokers offered as an inducement to the Fund to "roll over" their purchase commitments. These fees are recognized over the roll period and are included in "Interest and amortization" in the Statement of Operations.

Interest Only Obligations. These securities entitle the owner to receive only the interest portion from a bond, Treasury note or pool of mortgages. These securities are generally created by a third party separating a bond or pool of mortgages into distinct interest-only and principal-only securities. As the principal (par) amount of a bond or pool of mortgages is paid down, the amount of interest income earned by the owner will decline as well.

Credit Risk. Certain Funds may hold high yield and/or non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Funds may acquire securities in default, and are not obligated to dispose of securities whose issuers subsequently default.

Foreign Currency Translation. Each Fund's accounting records are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars daily using foreign exchange rates obtained from an independent pricing service authorized by the Board of Trustees. 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. Each Fund combines fluctuations from currency exchange rates and fluctuations in market value when computing net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments. Foreign exchange rates are valued as of the close of the NYSE, normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading, primarily usi ng an independent pricing service authorized by the Board of Trustees.

Repurchase Agreements. Each Fund may purchase securities subject to repurchase agreements, which are instruments under which the Fund purchases a security and the seller (normally a commercial bank or broker-dealer) agrees, at the time of purchase, that it will repurchase the security at a specified time and price. Repurchase agreements are collateralized by the value of the resold securities which, during the entire period of the agreement, generally remains at least equal to the value of the agreement, including accrued interest thereon. The collateral for the repurchase agreement is held by a custodian bank.

Investments with Off-Balance Sheet Risk. Certain Funds may enter into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Statement of Assets and Liabilities.

Segregation and Collateralization. In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (SEC) require that a Fund either deliver collateral or segregate assets in connection with certain investments (e.g., dollar rolls, financial futures contracts, foreign currency exchange contracts, options written, securities with extended settlement periods and swaps), the Fund will segregate collateral or designate on its books and records cash or other liquid securities having a market value at least equal to the amount that is required to be physically segregated for the benefit of the counterparty. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit cash or securities as collateral for certain investments.

Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.

Income Taxes. It is the policy of each Fund 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, each Fund intends to pay distributions as required to avoid imposition of excise tax. Accordingly, no provision has been made for Federal income taxes. Management of the Trust periodically reviews all tax positions to assess that it is more likely than not that the position would be sustained upon examination by the relevant tax authority based on the technical merits of each position. As of and for the fiscal period ended September 30, 2010, management believes that under this standard no liability for unrecognized tax positions is required. The Funds are subject to examination by U.S. federal and state authorities for returns filed for tax years after 2006.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders are recorded by each Fund on the business day following record date. Net investment income dividends and capital gains distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.

Custodian Fees. "Custodian fees" in the Statement of Operations may include interest expense incurred by a Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. A Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by that Fund, at a rate equal to the custodian's prime rate less 150 basis points. The "Earnings credit" line item, if shown, represents earnings on cash balances maintained by that Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Trustees and Chief Compliance Officer Fees. Fees paid to the Trustees can be paid in cash or deferred to a later date, at the election of the Trustee according to the Deferred Fee Agreement entered into between the Trust and the Trustee(s). Each Fund records its portion of the deferred fees as a liability on the Statement of Assets and Liabilities. All fees paid in cash plus any appreciation (depreciation) in the underlying deferred plan are shown on the Statement of Operations. Additionally, fees paid to the office of the Chief Compliance Officer of the Funds are shown on the Statement of Operations.

Indemnifications. The Trust's organizational documents provide current and former Trustees and Officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Trust. In the normal course of business, the Trust may also enter into contracts that provide general indemnifications. The Trust's maximum exposure under these arrangements is unknown and is dependent on future claims that may be made against the Trust. The risk of material loss from such claims is considered remote.

Concentration of Risk. Certain Funds may have a concentration of risk, which includes, but is not limited to, investing in international securities. International investing involves additional risks including, but not limited to, currency fluctuations, political or economic conditions affecting the foreign country and differences in accounting standards and foreign regulations.

Other. 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. Management has performed a review for subsequent events through the date this report was issued.

2. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS

Management Fees. IICO, a wholly owned subsidiary of Waddell & Reed Financial, Inc. (WDR), serves as each Fund's investment manager. The management fee is accrued daily by each Fund at the following annual rates:

Fund	Net Asset Breakpoints	Annual Rate
Ivy Asset Strategy Fund	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%
Ivy Asset Strategy New Opportunities Fund	Up to $500 Million	1.000%
	Over $500 Million up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%
Ivy Balanced Fund	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%
Ivy Energy Fund	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%
Ivy Global Natural Resources Fund	Up to $500 Million	1.000%
	Over $500 Million up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%
Ivy Real Estate Securities Fund	Up to $1 Billion	0.900%
	Over $1 Billion up to $2 Billion	0.870%
	Over $2 Billion up to $3 Billion	0.840%
	Over $3 Billion	0.800%
Ivy Science and Technology Fund	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%

For Funds managed solely by IICO, 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. See Expense Reimbursements and/or Waivers below for amounts waived during the fiscal period ended September 30, 2010.

IICO has entered into Subadvisory Agreements with the following entities on behalf of certain Funds.

Under an agreement between IICO and Mackenzie Financial Corporation (Mackenzie), Mackenzie serves as subadvisor to Ivy Global Natural Resources Fund. Advantus Capital Management, Inc. serves as subadvisor to Ivy Real Estate Securities Fund. Each subadvisor makes investment decisions in accordance with the Fund's investment objectives, policies and restrictions under the supervision of IICO and the Board of Trustees. IICO pays all costs associated with retaining the subadvisors.

Accounting Services Fees. The Trust has an Accounting Services Agreement with Waddell & Reed Services Company, doing business as WI Services Company (WISC), an indirect subsidiary of WDR. Under the agreement, WISC acts as the agent in providing bookkeeping and accounting services and assistance to the Trust, including maintenance of Fund records, pricing of Fund shares and preparation of certain shareholder reports. For these services, each Fund pays WISC a monthly fee of one-twelfth of the annual fee shown in the following table:

Accounting Services Fee
Average Net Asset Level (in millions)						Annual Fee Rate for Each Level
From	$	0	to	$	10		$	0
From	$	10	to	$	25		$	11.5
From	$	25	to	$	50		$	23.1
From	$	50	to	$	100		$	35.5
From	$	100	to	$	200		$	48.4
From	$	200	to	$	350		$	63.2
From	$	350	to	$	550		$	82.5
From	$	550	to	$	750		$	96.3
From	$	750	to	$	1,000		$	121.6
From	$	1,000 and Over					$	148.5

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

Administrative Fee. Each Fund also pays WISC a monthly 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 is voluntarily waived by WISC until a Fund's net assets are at least $10 million.

Shareholder Servicing. General. Under the Shareholder Servicing Agreement between the Trust and WISC, 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, each Fund pays a monthly fee that ranges from $1.5042 to $1.6958; however, WISC has agreed to reduce that fee if the number of total shareholder accounts within the Complex (Waddell & Reed Advisors Funds, Waddell & Reed InvestEd Portfolios and Ivy Funds) reaches certain levels. 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. Each Fund also reimburses WISC for certain out-of-pocket costs for all classes.
Networked accounts. For certain networked accounts (that is, those accounts whose Fund shares are purchased through certain financial intermediaries), WISC 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. If the aggregate annual rate of the WISC transfer agent fee and the costs charged by the financial services companies exceeds $18.00 per account for a Fund, WISC will reimburse the Fund the amount in excess of $18.00.
Broker accounts. Certain broker-dealers that maintain shareholder accounts with each Fund through an omnibus account provide transfer agent and other shareholder-related services that would otherwise be provided by WISC if the individual accounts that comprise the omnibus account were opened by their beneficial owners directly. Each Fund may pay such broker-dealers a per account fee for each open account within the omnibus account, or a fixed rate fee, based on the average daily net asset value of the omnibus account (or a combination thereof).

Distribution and Service Plan. Class A and Class E Shares. Under a Distribution and Service Plan adopted by the Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the Distribution and Service Plan), each Fund may pay a distribution and/or service fee to Ivy Funds Distributors, Inc. (IFDI) for Class A and Class E shares 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 and Class E shares and/or provision of personal services to Fund shareholders and/or maintenance of shareholder accounts of that class.
Class B and Class C Shares. Under the Distribution and Service Plan, each Fund may pay IFDI a service fee not to exceed 0.25% and a distribution fee not to exceed 0.75% of the Fund's average annual net assets for Class B and Class C shares 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.
Class Y Shares. Under the Distribution and Service 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.
Class R Shares. Under the Distribution and Service 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.

Sales Charges. As principal underwriter for the Trust's shares, IFDI receives sales commissions (which are not an expense of the Trust) for sales of 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 fiscal period ended September 30, 2010, IFDI received the following amounts in sales commissions and CDSCs:

	Gross Sales Commissions			CDSC
				Class A				Class B			Class C				Class E
Ivy Asset Strategy Fund		$	2,582		$	42			$	610		$	758			$	––
Ivy Asset Strategy New Opportunities Fund			163			––				––			––	*			––
Ivy Balanced Fund			91			––	*			4			2				––
Ivy Energy Fund			59			––				1			2				––
Ivy Global Natural Resources Fund			1,170			8				158			99				––
Ivy Real Estate Securities Fund			195			––	*			2			––	*			––
Ivy Science and Technology Fund			221			––	*			23			24				––
*Not shown due to rounding.

With respect to Class A, Class B, Class C and Class E shares, IFDI pays sales commissions and all expenses in connection with the sale of the Trust's shares, except for registration fees and related expenses. During the fiscal period ended September 30, 2010, the following amounts were paid by IFDI:

Ivy Asset Strategy Fund	$	11,414
Ivy Asset Strategy New Opportunities Fund		221
Ivy Balanced Fund		155
Ivy Energy Fund		73
Ivy Global Natural Resources Fund		1,588
Ivy Real Estate Securities Fund		203
Ivy Science and Technology Fund		445

Expense Reimbursements and/or Waivers. Fund and class expense limitations and related waivers/reimbursements for the fiscal period ended September 30, 2010 are as follows:

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement			Expense Waiver/ Reimbursement
Ivy Asset Strategy Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.00%	$	92		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2008	7-31-2011	1.00%	$	185		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Asset Strategy New Opportunities Fund
	All Classes	Contractual	5-3-2010	7-31-2011	NA	$	68	(1)	Investment management fee and other common expenses
	Class A	Contractual	5-3-2010	7-31-2011	1.50%	$	24		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	5-3-2010	7-31-2011	1.50%	$	––	*	12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	5-3-2010	7-31-2011	1.25%	$	6		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	5-3-2010	7-31-2011	1.50%	$	2		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Balanced Fund
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
*Not shown due to rounding.
(1)Due to Class A, Class E, Class I and/or Class Y contractual expense limits, investment management fee and/or other common expenses were waived for all share classes.
Ivy Energy Fund
	Class A	Contractual	8-1-2008	7-31-2011	1.60%	$	41		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	8-1-2008	7-31-2011	2.60%	$	––		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	8-1-2008	7-31-2011	2.60%	$	––		NA
	Class I	Contractual	8-1-2008	7-31-2010	1.60%	$	––		NA
	Class Y	Contractual	8-1-2008	7-31-2011	1.60%	$	––		NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Global Natural Resources Fund
	Class A	Contractual	6-16-2003	12-31-2011	2.75%	$	––		NA
	Class A	Voluntary	NA	NA	1.70%	$	––		NA
	Class B	Contractual	6-16-2003	12-31-2011	3.50%	$	––		NA
	Class C	Contractual	6-16-2003	12-31-2011	3.50%	$	––		NA
	Class C	Voluntary	NA	NA	2.40%	$	––		NA
	Class E	Contractual	8-1-2008	7-31-2011	1.27%	$	29		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-16-2003	12-31-2011	2.75%	$	––		NA
	Class Y	Voluntary	NA	NA	1.20%	$	261		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Real Estate Securities Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.67%	$	4		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Science and Technology Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.43%	$	15		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA

Any amounts due to the funds as a reimbursement but not paid as of September 30, 2010 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

3. INVESTMENT VALUATIONS

Fair value is defined as the price that each Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities

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

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

The following tables summarize the valuation of each Fund's investments by the above fair value hierarchy levels as of September 30, 2010. The Schedule of Investments provides additional details on each Fund's portfolio holdings.

Fund	Level 1		Level 2		Level 3
Ivy Asset Strategy Fund
Assets
Investments in Securities
Common Stocks	$	16,659,899	$	185,056	$	––
Preferred Stocks		1,305,346		––		––
Investment Funds		––		––		4,774
Warrants		––		312,944		––
Corporate Debt Securities		––		23,871		––
Put Options		79,538		13,042		––
United States Government Agency Obligations		––		9,815		––
Bullion		2,890,068		––		––
Short-Term Securities		––		1,388,414		––
Total Investments in Securities	$	20,934,851	$	1,933,142	$	4,774
Forward Foreign Currency Contracts	$	––	$	2,157	$	––
Futures Contracts		19,679		––		––
Liabilities
Forward Foreign Currency Contracts	$	––	$	102,961	$	––
Futures Contracts		160,856		––		––
Written Options		20,022		1,199		––
Ivy Asset Strategy New Opportunities Fund
Assets
Investments in Securities
Common Stocks	$	98,224	$	1,431	$	––
Short-Term Securities		––		10,594		––
Total Investments in Securities	$	98,224	$	12,025	$	––
Forward Foreign Currency Contracts	$	––	$	163	$	––
Liabilities
Forward Foreign Currency Contracts	$	––	$	155	$	––
Ivy Balanced Fund
Assets
Investments in Securities
Common Stocks	$	124,900	$	––	$	––
Corporate Debt Securities		––		39,010		––
Other Government Securities		––		1,262		––
United States Government Agency Obligations		––		2,534		––
United States Government Obligations		––		9,259		––
Short-Term Securities		––		5,223		––
Total Investments in Securities	$	124,900	$	57,288	$	––
Ivy Energy Fund
Assets
Investments in Securities
Common Stocks	$	87,848	$	––	$	––
Short-Term Securities		––		1,644		––
Total Investments in Securities	$	87,848	$	1,644	$	––
Ivy Global Natural Resources Fund
Assets
Investments in Securities
Common Stocks	$	4,800,530	$	––	$	7,260
Preferred Stocks		58,514		––		12,565
Call Options		267,880		––		––
Corporate Debt Securities		––		––		5,833
Short-Term Securities		––		18,533		––
Total Investments in Securities	$	5,126,924	$	18,533	$	25,658
Forward Foreign Currency Contracts	$	––	$	382	$	––
Liabilities
Forward Foreign Currency Contracts	$	––	$	18,373	$	––
Futures Contracts		5,780		––		––
Ivy Real Estate Securities Fund
Assets
Investments in Securities
Common Stocks	$	329,953	$	––	$	––
Preferred Stocks		1,662		––		––
Short-Term Securities		––		19,098		––
Total Investments in Securities	$	331,615	$	19,098	$	––
Ivy Science and Technology Fund
Assets
Investments in Securities
Common Stocks	$	1,096,827	$	––	$	––
Corporate Debt Securities		––		22,969		––
Total Investments in Securities	$	1,096,827	$	22,969	$	––

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

Common Stocks

Preferred Stocks

Investment Funds

Corporate Debt Securities

Put Options

Written Options

Ivy Asset Strategy Fund

Beginning Balance 4-1-10

$

––

$

––

$

5,181

$

––

$

14,366

$

(18,854

)

Net realized gain (loss)

––

––

––

––

65,309

(11,128

)

Net unrealized appreciation       (depreciation)

––

––

(407

)

––

6,967

7,480

Purchases

––

––

––

––

12,061

––

Sales

––

––

––

––

(98,703

)

22,502

Transfers into Level 3 during the       period

––

––

––

––

––

––

Transfers out of Level 3 during the       period

––

––

––

––

––

––

Ending Balance 9-30-10

$

––

$

––

$

4,774

$

––

$

––

$

––

Net change in unrealized       appreciation (depreciation) for       all Level 3 investments still       held as of 9-30-10

$

––

$

––

$

(407

)

$

––

$

––

$

––

Ivy Global Natural Resources Fund

Beginning Balance 4-1-10

$

7,260

$

12,565

$

––

$

8,428

$

––

$

––

Net realized gain (loss)

––

––

––

––

––

––

Net unrealized appreciation       (depreciation)

––

––

––

(2,595

)

––

––

Purchases

––

––

––

––

––

––

Sales

––

––

––

––

––

––

Transfers into Level 3 during the       period

––

––

––

––

––

––

Transfers out of Level 3 during the       period

––

––

––

––

––

––

Ending Balance 9-30-10

$

7,260

$

12,565

$

––

$

5,833

$

––

$

––

Net change in unrealized       appreciation (depreciation)       for all Level 3 investments       still held as of 9-30-10

$

––

$

––

$

––

$

(2,595

)

$

––

$

––

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the value at the later of the beginning of the fiscal period or the purchase date of the security.

Net realized gain (loss) and net unrealized appreciation (depreciation), shown on the reconciliation of Level 3 investments if applicable, are included on the Statement of Operations in net realized gain (loss) on investments in unaffiliated securities and in net change in unrealized appreciation (depreciation) on investments in unaffiliated securities, respectively. Additionally, the net change in unrealized appreciation for all Level 3 investments still held as of September 30, 2010, if applicable, is included on the Statement of Operations in net change in unrealized appreciation (depreciation) on investments in unaffiliated securities.

As shown above, the Funds may own different types of assets that are classified as Level 2 or Level 3. Assets classified as Level 2 can have a variety of observable inputs, including, but not limited to, benchmark yields, reported trades, broker quotes, benchmark securities, and bid/offer quotations. These observable inputs are collected and utilized, primarily by an independent pricing service, in different evaluated pricing approaches depending upon the specific asset to determine a value.

Securities' values included in the reconciliations above have been primarily determined through the use of a single quote (or multiple quotes) from dealer(s) in the securities using proprietary valuation models. These quotes involve significant unobservable inputs, and thus the related securities are classified as Level 3 investments.

4. INVESTMENT SECURITIES TRANSACTIONS

For the fiscal period ended September 30, 2010, the cost of purchases and the proceeds from maturities and sales of investment securities, other than U.S. Government and short-term securities, were as follows:

	Purchases		Sales
Ivy Asset Strategy Fund	$	7,639,645	$	8,679,839
Ivy Asset Strategy New Opportunities Fund		98,194		12,157
Ivy Balanced Fund		53,327		42,690
Ivy Energy Fund		17,653		9,175
Ivy Global Natural Resources Fund		2,242,380		2,706,364
Ivy Real Estate Securities Fund		124,908		113,143
Ivy Science and Technology Fund		226,243		191,159

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

	Purchases			Sales
Ivy Asset Strategy Fund	$	––	$	448
Ivy Balanced Fund		––		303

5. FEDERAL INCOME TAX MATTERS

For Federal income tax purposes, cost of investments owned at September 30, 2010 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of investments		Gross appreciation		Gross depreciation		Net unrealized appreciation
Ivy Asset Strategy Fund	$	18,039,556	$	4,991,407	$	158,196	$	4,833,211
Ivy Asset Strategy New Opportunities Fund		95,772		14,852		406		14,446
Ivy Balanced Fund		153,063		30,259		1,134		29,125
Ivy Energy Fund		74,913		16,355		1,776		14,579
Ivy Global Natural Resources Fund		4,609,371		722,672		160,928		561,744
Ivy Real Estate Securities Fund		286,238		67,068		2,593		64,475
Ivy Science and Technology Fund		988,774		174,698		43,676		131,022

For Federal income tax purposes, the Funds' distributed and undistributed earnings and profit for the fiscal year ended March 31, 2010 and the related net capital losses and post-October activity updated with information available through the date of this report were as follows:

Ivy Asset Strategy Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Global Natural Resources Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

Net ordinary income

$

85,403

$

1,976

$

––

$

––

$

4,044

$

21,014

Distributed ordinary income

54,493

1,954

––

––

4,165

5,334

Undistributed ordinary income

30,910

89

––

––

714

15,680

Realized long term capital gains

––

––

––

––

––

––

Distributed long term capital gains

––

––

––

––

––

––

Undistributed long term capital gains

––

––

––

––

––

––

Post-October losses deferred

4,599

––

––

14,246

5,124

4,280

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). Distributions shown above may be reported differently to individual shareholders.

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

	Ivy Asset Strategy Fund		Ivy Balanced Fund		Ivy Energy Fund		Ivy Global Natural Resources Fund		Ivy Real Estate Securities Fund		Ivy Science and Technology Fund
March 31, 2011	$	––	$	––	$	––	$	––	$	––		$	414
March 31, 2017		2,298,790		606		2,508		483,760		6,148			––
March 31, 2018		1,651,528		5,244		9,795		1,574,489		83,379			––
Total carryover	$	3,950,318	$	5,850	$	12,303	$	2,058,249	$	89,527		$	414

6. MULTICLASS OPERATIONS

The Trust has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class of each Fund. On April 1, 2010, all Advisor class shares were converted to Class I. Transactions in shares of beneficial interest were as follows:

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Asset Strategy Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	64,796		$	1,416,486		214,470		$	4,491,153
Class B	2,925			62,209		9,734			198,340
Class C	40,661			868,717		146,964			3,012,299
Class E	244			5,375		603			12,770
Class I	97,102			2,173,387		181,711			3,765,066
Class R	872			18,854		1,328			28,550
Class Y	10,961			239,918		39,474			799,701
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		1,318			29,144
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		5			120
Class I	––			––		323			7,182
Class R	––			––		1			23
Class Y	––			––		171			3,779
Shares redeemed:
Class A	(112,851	)		(2,466,106	)	(80,888	)		(1,699,858	)
Class B	(2,036	)		(42,839	)	(2,563	)		(52,224	)
Class C	(40,755	)		(857,033	)	(47,162	)		(968,982	)
Class E	(82	)		(1,773	)	(92	)		(1,968	)
Class I	(35,119	)		(755,874	)	(25,186	)		(542,652	)
Class R	(211	)		(4,540	)	(145	)		(3,094	)
Class Y	(12,534	)		(270,611	)	(71,673	)		(1,397,847	)
Net increase	13,973		$	386,170		368,393		$	7,681,502

	Fiscal period ended 9-30-10
Ivy Asset Strategy New Opportunities Fund	Shares		Value
Shares issued from sale of shares:
Class A	6,323		$	63,170
Class B	235			2,355
Class C	1,606			16,088
Class E	10			100
Class I	1,527			15,233
Class R	50			500
Class Y	442			4,403
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––
Class B	––			––
Class C	––			––
Class E	––			––
Class I	––			––
Class R	––			––
Class Y	––			––
Shares redeemed:
Class A	(237	)		(2,370	)
Class B	(1	)		(8	)
Class C	(36	)		(372	)
Class E	––			––
Class I	(40	)		(414	)
Class R	––			––
Class Y	(11	)		(119	)
Net increase	9,868		$	98,566

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Balanced Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	1,025		$	16,692		1,173		$	17,681
Class B	106			1,714		146			2,204
Class C	681			11,019		768			11,536
Class E	––			––		––			––
Class I	123			1,996		442			6,128
Class Y	186			2,989		713			10,646
Shares issued in reinvestment of distributions to shareholders:
Class A	22			350		62			950
Class B	––	*		3		2			26
Class C	2			34		13			193
Class E	––	*		––	*	––	*		1
Class I	––	*		7		––	*		5
Class Y	12			192		34			519
Shares redeemed:
Class A	(694	)	(11,300		)	(1,654	)		(24,559	)
Class B	(41	)		(653	)	(92	)		(1,382	)
Class C	(358	)		(5,818	)	(2,021	)		(29,567	)
Class E	––			––		––			––
Class I	(49	)		(782	)	(324	)		(4,688	)
Class Y	(202	)		(3,293	)	(1,284	)		(18,175	)
Net increase (decrease)	813		$	13,150		(2,022	)	$	(28,482	)
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Energy Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	973		$	10,296		3,046		$	31,287
Class B	29			300		81			805
Class C	218			2,280		567			5,595
Class E	––			––		––			––
Class I	246			2,775		146			1,613
Class Y	207			2,217		568			5,731
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		––			––
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––			––
Class I	––			––		––			––
Class Y	––			––		––			––
Shares redeemed:
Class A	(950	)		(9,884	)	(1,529	)	(15,391		)
Class B	(25	)		(251	)	(58	)		(576	)
Class C	(181	)		(1,832	)	(547	)		(5,198	)
Class E	––			––		––			––
Class I	(25	)		(258	)	(21	)		(225	)
Class Y	(135	)		(1,418	)	(313	)		(3,333	)
Net increase	357		$	4,225		1,940		$	20,308

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Global Natural Resources Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	15,155		$	260,180		61,624		$	999,713
Class B	340			5,290		1,629			23,708
Class C	3,733			56,459		18,926			270,539
Class E	47			799		108			1,813
Class I	25,610			429,751		54,828			927,446
Class R	745			12,673		2,017			33,482
Class Y	5,490			93,155		26,170			428,519
Advisor Class	––			––		––			––
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		––			––
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––			––
Class I	––			––		––			––
Class R	––			––		––			––
Class Y	––			––		––			––
Advisor Class	––			––		––			––
Shares redeemed:
Class A	(28,502	)		(476,259	)	(57,710	)	(947,609		)
Class B	(1,482	)		(22,595	)	(2,142	)		(32,167	)
Class C	(9,920	)		(145,089	)	(12,778	)		(186,615	)
Class E	(12	)		(198	)	(21	)		(350	)
Class I	(20,752	)		(348,289	)	(18,696	)		(323,724	)
Class R	(525	)		(8,675	)	(991	)		(15,979	)
Class Y	(10,839	)		(189,574	)	(15,611	)		(273,118	)
Advisor Class	(13	)		(253	)	––	*		(7	)
Net increase (decrease)	(20,925	)	$	(332,625	)	57,353		$	905,651
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Real Estate Securities Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	2,081		$	34,234		2,631		$	32,989
Class B	40			666		51			627
Class C	92			1,514		135			1,672
Class E	9			144		13			169
Class I	100			1,656		308			4,383
Class R	16			263		14			184
Class Y	891			14,827		1,289			16,785
Shares issued in reinvestment of distributions to shareholders:
Class A	38			626		164			2,144
Class B	––			––		––	*		4
Class C	1			8		4			51
Class E	––	*		3		1			9
Class I	2			33		2			22
Class R	––	*		2		––	*		5
Class Y	41			671		144			1,872
Shares redeemed:
Class A	(1,493	)		(24,438	)	(3,611	)		(44,794	)
Class B	(57	)		(917	)	(146	)		(1,792	)
Class C	(63	)		(1,032	)	(182	)		(2,206	)
Class E	(2	)		(27	)	(3	)		(38	)
Class I	(43	)		(698	)	(132	)		(1,744	)
Class R	(6	)		(93	)	(4	)		(52	)
Class Y	(530	)		(8,500	)	(1,103	)		(13,796	)
Net increase (decrease)	1,117		$	18,942		(425	)	$	(3,506	)

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Science and Technology Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	2,852		$	81,816		8,782		$	229,855
Class B	142			3,724		426			10,102
Class C	913			24,311		2,848			69,791
Class E	20			580		58			1,536
Class I	1,905			59,451		4,050			113,349
Class R	253			7,105		498			13,195
Class Y	2,123			63,248		6,734			181,267
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		81			2,252
Class B	––			––		––			––
Class C	––			––		6			163
Class E	––			––		1			20
Class I	––			––		13			398
Class R	––			––		2			65
Class Y	––			––		68			1,960
Shares redeemed:
Class A	(3,050	)		(85,286	)	(5,584	)		(148,705	)
Class B	(104	)		(2,648	)	(313	)		(7,615	)
Class C	(860	)		(22,447	)	(1,168	)		(28,679	)
Class E	(5	)		(132	)	(8	)		(222	)
Class I	(1,511	)		(44,580	)	(1,016	)		(29,559	)
Class R	(124	)		(3,511	)	(143	)		(3,831	)
Class Y	(2,649	)		(78,186	)	(4,068	)		(109,308	)
Net increase (decrease)	(95	)	$	3,445		11,267		$	296,034
*Not shown due to rounding.

7. DERIVATIVE INSTRUMENTS

The following disclosures contain information on why and how the Funds use derivative instruments, the associated risks of investing in derivative instruments, and how derivative instruments affect the Funds' financial position and results of operations when presented by primary underlying risk exposure.

Forward Foreign Currency Contracts. Certain Funds may enter into forward foreign currency contracts (forward contracts) for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Schedule of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the NYSE as provided by a bank, dealer or independent pricing service. The resulting unrealized appreciation and depreciation is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations.

Risks to a Fund related to the use of such contracts include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, a Fund's maximum loss will consist of the aggregate unrealized gain on appreciated contracts.

Futures Contracts. Certain Funds may engage in buying and selling futures contracts. Upon entering into a futures contract, the Fund is required to deposit, in a segregated account, an amount equal to a varying specified percentage of the contract amount. This amount is known as the initial margin. Subsequent payments (variation margins) are made or received by the Fund each day, dependent on the daily fluctuations in the value of the underlying debt security or index.

Futures contracts are reported on a schedule following the Schedule of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are identified in the Schedule of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation (depreciation) is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts.

Risks of entering into futures contracts include the possibility of loss of securities or cash held as collateral, that there may be an illiquid market where the Fund is unable to close the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund's securities.

Swap Agreements. Certain Funds may invest in swap agreements.

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. A 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. A 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. The maximum loss a Fund may incur consists of the aggregate gain on appreciated contracts.

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

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

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

Collateral. A Fund may mitigate counterparty risk through credit support annexes (CSA) included with an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement which is the standard contract governing most derivative transactions between the Fund and each of its counterparties. The CSA allows the Fund and its counterparty to offset certain derivative financial instruments' payables and/or receivables with collateral, which is generally held by the Fund's custodian. The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts specified in the CSA. To the extent amounts due to the Fund from its counterparties are not fully collateralized contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. See Note 1 "Segregation and Collateralization" for additional information with respect to collateral practices.

Objectives and Strategies

Ivy Asset Strategy Fund. The Fund's objectives in using derivatives during the period included hedging market risk on equity securities, increasing exposure to various equity markets, managing exposure to various foreign currencies, and hedging certain event risks on positions held by the Fund. To achieve the objective of hedging market risk and increasing exposure to equity markets, the Fund utilized futures and option contracts on foreign and domestic equity indices. To manage foreign currency exposure, the Fund utilized forward contracts and option contracts to either increase or decrease exposure to a given currency. To manage event risks, the Fund utilized short futures on foreign and domestic equity indices and option contracts, both written and purchased, on individual equity securities owned by the Fund.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives			Liability Derivatives
Type of Risk Exposure	Statement of Assets and Liabilities Location	Fair Value		Statement of Assets and Liabilities Location	Fair Value
Equity	Unrealized appreciation on futures       contracts* and Investments       in unaffiliated securities**	$	112,259	Unrealized depreciation on futures       contracts* and written options       at market value	$	182,077
Foreign currency	Unrealized appreciation on forward       foreign currency contracts		2,157	Unrealized depreciation on forward       foreign currency contracts		102,961
Total		$	114,416		$	285,038
*The fair value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected in the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable (payable) as of September 30, 2010.
**Purchased options are reported as investments in unaffiliated securities and are reflected in the accompanying Schedule of Investments.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on Derivatives Recognized in the Statement of Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations				Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on investments in       unaffiliated securities, written options and       futures contracts/Net change in unrealized       appreciation (depreciation) on investments       in unaffiliated securities, written options       and futures contracts		$	(1,044,999	)	$	(61,676	)
Foreign currency	Net realized gain (loss) on investments in       unaffiliated securities, written options and       forward foreign currency contracts/Net       change in unrealized appreciation       (depreciation) on investments in unaffiliated       securities, written options and forward       foreign currency contracts			(56,820	)		(156,818	)
Total			$	(1,101,819	)	$	(218,494	)

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding and market value outstanding for forward contracts and futures contracts, respectively, were as follows: short forward contracts - $3,604,192, long forward contracts - $3,588,942, short futures contracts - $5,831,154. Additionally, the Fund's average number of purchased option contracts and written option contracts outstanding was 151 and 25, respectively.

Ivy Asset Strategy New Opportunities Fund. The Fund's objectives in using derivatives during the period included hedging market risk on equity securities, managing the exposure to various foreign currencies, and gaining exposure to certain individual or baskets of securities that are not readily available for direct purchase. To achieve the objective of hedging market risk, the Fund utilized futures contracts on foreign and domestic equity indices. To manage foreign currency exposure, the Fund utilized forward contracts to either increase or decrease exposure to a given currency. To gain exposure to certain individual or baskets of securities, the Fund utilized total return swaps.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and Liabilities Location	Fair Value	Statement of Assets and Liabilities Location	Fair Value
Foreign currency	Unrealized appreciation on forward       foreign currency contracts	$163	Unrealized depreciation on forward       foreign currency contracts	$155

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on Derivatives Recognized in the Statement of Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations				Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on futures contracts       and swap agreements		$	(230	)	$	0
Foreign currency	Net realized gain (loss) on forward foreign       currency contracts/Net change in       unrealized appreciation (depreciation)       on forward foreign currency contracts			(181	)		8
Total			$	(411	)	$	8

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding for forward contracts were as follows: short forward contracts - $2,172, long forward contracts - $2,104. Additionally, the Fund's average number of swap contracts outstanding was 145.

Ivy Global Natural Resources Fund. The Fund's objectives in using derivatives during the period were to hedge market risk on equity securities, increase exposure to specific sectors or companies, and manage exposure to various foreign currencies. To achieve the objective of hedging market risk and increasing exposure to equity markets, the Fund utilized futures on equity indices and purchased option contracts on individual equity securities. To manage foreign currency exposure, the Fund utilized forward contracts to either increase or decrease exposure to a given currency.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives			Liability Derivatives
Type of Risk Exposure	Statement of Assets and Liabilities Location		Fair Value	Statement of Assets and Liabilities Location	Fair Value
Equity	Investments in unaffiliated       securities**	$	267,880	Unrealized depreciation on futures       contracts*	$	5,780
Foreign currency	Unrealized appreciation on forward       foreign currency contracts		382	Unrealized depreciation on forward       foreign currency contracts		18,373
Total		$	268,262		$	24,153
*The fair value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected in the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable (payable) as of September 30, 2010.
**Purchased options are reported as investments in unaffiliated securities and are reflected in the accompanying Schedule of Investments.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on Derivatives Recognized in the Statement of Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations				Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on investments in       unaffiliated securities and futures       contracts/Net change in unrealized       appreciation (depreciation) on investments       in unaffiliated securities and futures       contracts		$	(97,666	)	$	(16,958	)
Foreign currency	Net realized gain (loss) on forward foreign       currency contracts/Net change in       unrealized appreciation (depreciation)       on forward foreign currency contracts			(15,451	)		(14,563	)
Total			$	(113,117	)	$	(31,521	)

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding and market value outstanding for forward contracts and futures contracts, respectively, were as follows: short forward contracts - $632,538, long forward contracts - $627,049, short futures contracts - $333,419. Additionally, the Fund's average number of purchased option contracts outstanding was 258.

Ivy Science and Technology Fund. The Fund's objective in using derivatives during the period was to hedge market risk on securities in its portfolio. To achieve this objective, the Fund utilized options, both written and purchased, on individual equity securities owned by the Fund.

There were no open derivative instruments as of September 30, 2010.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on Derivatives Recognized in the Statement of Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on investments in       unaffiliated securities and written options	$4,555	$0

During the fiscal period ended September 30, 2010, the Fund's average number of purchased option contracts and written option contracts outstanding was 84 and 198, respectively.

8. COMMITMENTS

In connection with Ivy Asset Strategy Fund's investment in Vietnam Azalea Fund Limited (VAF), the Fund is contractually committed to provide additional capital of up to $3,732 if and when VAF requests such contributions or draw downs. The total commitment is limited to $11,000. At September 30, 2010, Ivy Asset Strategy Fund had made a total contribution of $7,268. No public market currently exists for the shares of VAF nor are the shares listed on any securities exchange. VAF intends to become listed within one year after the final commitment has been drawn down. VAF's investment strategy is to make minority investments in future blue-chip Vietnamese companies that are already listed or intend to be listed in the next 24 months.

9. AFFILIATED COMPANY TRANSACTIONS

A summary of the transactions in affiliated companies during the fiscal period ended September 30, 2010 follows:

	3-31-10 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/ (Loss)			Distributions Received			9-30-10 Share Balance		9-30-10 Market Value
Ivy Asset Strategy Fund
PMC-Sierra, Inc.(1)		21,261	$	––	$	63,533	$	(871	)		$	––		13,361	$	98,335
Starwood Hotels & Resorts      Worldwide, Inc.		8,333		71,322		––		––				––		9,908		520,650
Vietnam Azalea Fund       Limited(1)		1,100		––		––		––				––		1,100		4,774
Wynn Resorts, Limited		11,698		33,570		––		––				5,957		12,130		1,052,520
											$	5,957			$	1,676,279
(1)No dividends were paid during the preceding 12 months.

	3-31-10 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/ (Loss)			Distributions Received			9-30-10 Share Balance		9-30-10 Market Value
Ivy Global Natural Resources Fund
Alpha Natural Resources,       Inc.(1)		6,500	$	19,057	$	24,366	$	(4,753	)		$	––		6,500	$	267,474
Yingli Green Energy Holding       Company Limited,       ADR(1)(2)		7,500		11,835		24,968		(10,360	)			––		7,250		N/A
											$	––			$	267,474
(1)No dividends were paid during the preceding 12 months.
(2)Company was no longer an affiliate at September 30, 2010.

10. WRITTEN OPTION ACTIVITY

For Ivy Asset Strategy Fund, transactions in written call options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		138		$	37,747
Options written		––			––
Options terminated in closing purchase transactions		(138	)	(37,747		)
Options exercised		––			––
Options expired		––			––
Outstanding at September 30, 2010		––		$	––

For Ivy Asset Strategy Fund, transactions in written put options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		––		$	––
Options written		32			38,315
Options terminated in closing purchase transactions		––	*		(14,567	)
Options exercised		––			––
Options expired		(1	)		(203	)
Outstanding at September 30, 2010		31		$	23,545

For Ivy Science and Technology Fund, transactions in written call options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		––		$	––
Options written		876			1,195
Options terminated in closing purchase transactions		––			––
Options exercised		––			––
Options expired		(876	)		(1,195	)
Outstanding at September 30, 2010		––		$	––
*Not shown due to rounding.

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENT

Ivy Funds

At a meeting of the Board of Trustees of Ivy Funds (the "Trust") held on August 24 and 25, 2010, the Trustees, including all of the Trustees who are not "interested persons," as defined in Section 2(a)(19) of the 1940 Act, unanimously approved the continuance of the Investment Management Agreement between Ivy Investment Management Company ("IICO") and the Trust and the continuance of the Investment Subadvisory Agreements between IICO and:

• Advantus Capital Management, Inc. (with respect to Ivy Bond Fund, Ivy Mortgage Securities Fund and Ivy Real Estate Securities Fund)
• Mackenzie Financial Corporation (with respect to Ivy Global Natural Resources Fund and Ivy Cundill Global Value Fund)
• Wall Street Associates (with respect to Ivy Micro Cap Growth Fund)

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

The Board's Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its review of the various agreements, including, among other things, the nature and the quality of the services provided by IICO and the Subadvisers, profitability (including any fall-out benefits) from the relationships with each series of the Trust (each a "Fund," and together, the "Funds"), economies of scale, the role played by the Independent Trustees, and information on comparative fees and expenses. The Board also considered the written responses and supplementary materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees' counsel prior to the meeting. Included in those responses, which had been provided to the B oard prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO, as well as an explanation of the methodology by which the profitability analysis was calculated. The Board also received extensive materials on performance, expenses and comparable fund information from Lipper, Inc., an independent mutual fund rating service. Finally, the Independent Trustees received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Trustees previously had reviewed these materials during a telephonic meeting earlier in August. They further reviewed these materials extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members at the August 24th and 25th Board meeting, after which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Boar d's determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to the Funds by IICO and each Subadviser, taking into account the large amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence request lists submitted on their behalf by counsel. They also considered the knowledge they had received from the regular meetings of the Board, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the other services provided to the Funds by IICO and each Subadviser (such as, managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to each Fund's investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund po licies and procedures and with applicable securities laws and regulations). The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with the Funds

The Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. The Board considered the benefits that accrue to each organization from its respective relationship with a Fund, including the fact that a variety of services are provided by affiliates of IICO, including distribution, shareholder servicing, administrative and fund accounting services. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receive any additional direct or indirect benefits that would preclude the Board from approving the continuation of an investment advisory agreement with IICO or any investment sub-advisory agreement with a Subadviser.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds' shareholders. In that context, the Board discussed the current level of the Funds' advisory fee breakpoints and also considered the current and anticipated asset levels of the Funds and the potential for growth in each Fund. The Board concluded that the Funds' asset sizes and fee structures did not warrant the restructuring or reevaluation of the fee breakpoints for the Funds at the current time.

Performance of the Funds and Costs of Services Provided

The Board considered, on a Fund by Fund basis, the performance of each Fund and the costs of the services provided. The Board focused particularly on, among other Funds, the Ivy Asset Strategy Fund, Ivy Bond Fund, Ivy Capital Appreciation Fund, Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Bond Fund, Ivy Global Natural Resources Fund and Ivy Large Cap Growth Fund. In addition, the Board considered that IICO relatively recently had assumed the day-to-day portfolio management responsibilities for the Ivy European Opportunities Fund and the Ivy International Balanced Fund, replacing those Funds' subadvisers.

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

The Board also considered the expenses of each Fund, the expense ratio of each Fund, and the expense limitation arrangements entered into by IICO in light of the services provided by IICO and each Subadviser. The Board also compared each Fund's expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to separately managed accounts in the same asset class for certain Funds. In that regard, the Board noted that IICO performs significant additional services for the Funds as compared to such separately managed accounts. 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 F unds' expense ratios, noting that, as the Funds' assets have increased over time, the expense ratios of the Funds generally have fallen. After completing this examination, the Board concluded that each Fund's expenses are appropriate at the current time.

Independent Fee Consultant Review

During August of 2010, and as part of their regularly scheduled meetings, the Disinterested Trustees of Ivy Funds (collectively, the "Ivy Funds" and any separate series thereof an "Ivy Fund") reviewed significant information in connection with considering the continuation of existing investment management agreements currently in effect between Ivy Investment Management Company ("IICO") and the Ivy Funds. Pursuant to the Assurance of Discontinuance between Waddell & Reed, Inc., Waddell & Reed Services Company ("WRSCO"), and Waddell & Reed Investment Management Company (collectively, "Waddell") and the Office of the New York Attorney General dated July 10, 2006 ("Assurance of Discontinuance"), the Disinterested Trustees 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 revi ew addressed the following fee-related factors:

1. The nature, extent 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 an Ivy Fund grows larger

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

Summary Findings

The report stated that IICO delivered strong levels of performance and service to the Ivy Funds in relation to its management fees and relative to investment advisers of comparable mutual funds. For the 36 months ended March 31, 2010, when compared to their respective peer groups established by Lipper, Inc. ("Lipper"), approximately 54% of the Ivy Funds were in the top quintile of performance and 62% of the Ivy Funds were in the top two quintiles of performance. For the one-, and five-year periods ended March 31, 2010, the report stated that 33% and 64% of the Ivy Funds were in the top two quintiles of performance, respectively. The independent fee consultant noted that the Ivy Funds' performance appeared to be grounded in a number of institutional competitive advantages at IICO, including stock selection ability, ability to attract top talent, strategic vision, performance-focused culture, ability to manage smaller AUM funds, ability to serve small account sizes and an effective trading infrastruc ture.

The report stated that for the 12 months ended March 31, 2010, the asset-weighted average expense ratios of the Ivy Funds were 2% below the mean expense ratios of comparable Lipper Expense Group peers and 16% below asset-weighted average expense ratios of funds in the Lipper Expense Universe. The management fees for the Ivy Funds on average were approximately 9% below the mean management fees for their Lipper Expense Groups and approximately 17% below the mean for their Lipper Expense Universe. The independent fee consultant noted that the Ivy Funds' small average account size introduces certain biases in the Lipper analyses that works against Ivy Funds in Lipper expense comparisons and, as a result, the Lipper findings may be considered conservative in that regard. The independent fee consultant found that within the larger Lipper averages the management fees and total expenses of individual Ivy Funds and share classes are reasonable relative to their performance.

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

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

The independent fee consultant undertook an economy of pricing analysis that showed that Ivy Funds incur lower fees and expenses with increasing fund AUM which the independent fee consultant believes should benefit Ivy Fund investors as the Ivy Funds mature.

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 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 average net assets. Where these terms are used in reference to groups of Ivy Funds, numbers expressed are usually on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending March 31, 2010.

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, 2010 are reasonable and provide adequate justification for renewal of the Ivy Funds' existing advisory agreements.

PROXY VOTING INFORMATION

Ivy Funds

Proxy Voting Guidelines

A description of the policies and procedures Ivy Funds uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 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 Trust 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

Ivy Funds

Portfolio holdings can be found on the Trust's website at www.ivyfunds.com. Alternatively, a complete schedule of portfolio holdings of each Fund for the first and third quarters of each fiscal year is filed with the SEC and can be found on the Trust's Form N-Q. These holdings may be viewed 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.

TO ALL TRADITIONAL IRA PLANHOLDERS:

Ivy Funds

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

This page is for your notes and calculations.

THE IVY FUNDS FAMILY

Domestic Equity Funds

Ivy Capital Appreciation Fund

Ivy Core Equity Fund

Ivy Dividend Opportunities Fund

Ivy Large Cap Growth Fund

Ivy Micro Cap Growth Fund

Ivy Mid Cap Growth Fund

Ivy Small Cap Growth Fund

Ivy Small Cap Value Fund

Ivy Tax-Managed Equity Fund

Ivy Value Fund

Global/International Funds

Ivy Cundill Global Value Fund

Ivy European Opportunities Fund

Ivy International Balanced Fund

Ivy International Core Equity Fund

Ivy International Growth Fund

Ivy Managed European/Pacific Fund

Ivy Managed International Opportunities Fund

Ivy Pacific Opportunities Fund

Specialty Funds

Ivy Asset Strategy Fund

Ivy Asset Strategy New Opportunities Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Global Natural Resources Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

Fixed Income Funds

Ivy Bond Fund

Ivy Global Bond Fund

Ivy High Income Fund

Ivy Limited-Term Bond Fund

Ivy Money Market Fund

Ivy Mortgage Securities Fund

Ivy Municipal Bond Fund

Ivy Municipal High Income 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, or summary prospectus, carefully before investing.

SEMIANN-IVYFUNDS (9-10)

Semiannual Report

September 30, 2010

Ivy Funds

Ivy Bond Fund
Ivy Capital Appreciation Fund
Ivy Core Equity Fund
Ivy Cundill Global Value Fund
Ivy Dividend Opportunities Fund
Ivy European Opportunities Fund
Ivy Global Bond Fund
Ivy High Income Fund
Ivy International Balanced Fund
Ivy International Core Equity Fund
Ivy International Growth Fund
Ivy Large Cap Growth Fund
Ivy Limited-Term Bond Fund
Ivy Managed European/Pacific Fund
Ivy Managed International Opportunities Fund
Ivy Micro Cap Growth Fund
Ivy Mid Cap Growth Fund
Ivy Money Market Fund
Ivy Mortgage Securities Fund
Ivy Municipal Bond Fund
Ivy Municipal High Income Fund
Ivy Pacific Opportunities Fund
Ivy Small Cap Growth Fund
Ivy Small Cap Value Fund
Ivy Tax-Managed Equity Fund
Ivy Value Fund

CONTENTS

Ivy Funds

President's Letter	3
Portfolio Highlights, Illustration of Fund Expenses and Schedule of Investments:
Ivy Bond Fund	4
Ivy Capital Appreciation Fund	13
Ivy Core Equity Fund	17
Ivy Cundill Global Value Fund	21
Ivy Dividend Opportunities Fund	25
Ivy European Opportunities Fund	29
Ivy Global Bond Fund	33
Ivy High Income Fund	41
Ivy International Balanced Fund	49
Ivy International Core Equity Fund	54
Ivy International Growth Fund	58
Ivy Large Cap Growth Fund	62
Ivy Limited-Term Bond Fund	66
Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund	72
Ivy Micro Cap Growth Fund	75
Ivy Mid Cap Growth Fund	79
Ivy Money Market Fund	83
Ivy Mortgage Securities Fund	88
Ivy Municipal Bond Fund	94
Ivy Municipal High Income Fund	102
Ivy Pacific Opportunities Fund	111
Ivy Small Cap Growth Fund	115
Ivy Small Cap Value Fund	119
Ivy Tax-Managed Equity Fund	123
Ivy Value Fund	128
Statement of Assets and Liabilities	132
Statement of Operations	136
Statement of Changes in Net Assets	140
Financial Highlights	150
Notes to Financial Statements	202
Renewal of Investment Management Agreement	245
Proxy Voting Information	249
Quarterly Portfolio Schedule Information	250
IRA Disclosure	250

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

PRESIDENT'S LETTER

Ivy Funds

SEPTEMBER 30, 2010 (UNAUDITED)  

Henry J. Herrmann, CFA

Dear Shareholder:

In the six months since our last report to you, investors have witnessed a dramatic reversal in investor sentiment. When the period opened, stocks and bonds were rallying as many economic indicators pointed to continued recovery and increasing stability in the U.S. economy. Investor confidence was further bolstered by stabilization of global credit markets and stronger-than-expected first-quarter 2010 corporate profits. Optimism abruptly changed, however, with the emergence of the European debt crisis, which created fears of a double-dip recession. The European banking system was negatively impacted when investors began to question the credit quality of several sovereign governments and whether the eurozone would be able to move past political strife to gain monetary stability. That scenario, in conjunction with data reflecting slowing U.S. economic growth and escalating concern about China's ability to slow the pace of its economy, drove a sharp global correction. Investors dodged riskier assets and de monstrated a flight to quality, ultimately driving U.S. bond yields to historical lows and fueling fears that the global economy could slip back into recession. The tide seemed to turn in September, however, traditionally a negative month for equities, with slightly stronger economic data and optimism that mid-term elections may drive more investor-friendly changes in Washington. Stocks staged a dramatic four-week rally that restored some optimism, as did an announcement from the National Bureau of Economic Research that the `Great Recession,' the longest-lasting since the Great Depression, officially ended in June of 2009.

The economy grew at a 1.7 percent annual rate in the second calendar quarter of 2010, and preliminary estimates for third-quarter growth appear positive. The S&P 500 Index declined 2.4 percent during the six months ended September 30, 2010, while international securities, as represented by the MSCI EAFE Index, declined 1.5 percent. Fixed-income markets, as measured by the Citigroup Broad Investment Grade Index, saw yields drop significantly.

Numerous imponderables remain, including persistent high unemployment and a housing sector that continues to struggle, particularly so after government stimulus was removed. Nonetheless, we are optimistic that better days are ahead. Interest rates are low, government policy remains accommodative, and companies are reporting more robust activity. Acquisition activity, a sign that companies are growing more willing to loosen the purse strings and funnel money into growing their operations, appears to be picking up.

Economic Snapshot

	9/30/10			3/31/10
S&P 500 Index	1141.20			1169.43
MSCI EAFE Index	1561.01			1584.27
Citigroup Broad Investment Grade Index       (annualized yield to maturity)		2.33	%		3.26	%
U.S. unemployment rate		9.6	%		9.7	%
30-year fixed mortgage rate		4.35	%		4.99	%
Oil price per barrel	$79.97			$83.76

Sources: Bloomberg, U.S. Department of Labor

All government statistics shown are subject to periodic revision. The S&P 500 Index is an unmanaged index that tracks the stocks of 500 primarily large-cap U.S. companies. MSCI EAFE Index is an unmanaged index comprised of securities that represent the securities markets in Europe, Australasia and the Far East. Citigroup Broad Investment Grade Index is an unmanaged index comprised of securities that represent the bond market. Annualized yield to maturity is the rate of return anticipated on a bond if it is held until the maturity date. It is not possible to invest directly in any of these indexes. 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.

As always, we thank you for your continued trust in Ivy Funds, and encourage you to share in our optimism for the future.

Respectfully,

Henry J. Herrmann, CFA
President

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

PORTFOLIO HIGHLIGHTS

Ivy Bond Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)  

Asset Allocation

Bonds	97.3%
Corporate Debt Securities	48.0%
United States Government and             Government Agency Obligations	47.6%
Other Government Securities	1.7%
Cash and Cash Equivalents and Equities	2.7%

Lipper Rankings

Category: Lipper Corporate Debt Funds A Rated	Rank	Percentile
1 Year	35/137	26
3 Year	101/130	78
5 Year	102/122	83
10 Year	48/61	78

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

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.

Quality Weightings

Investment Grade	89.0%
AAA	57.6%
AA	4.7%
A	9.8%
BBB	16.9%
Non-Investment Grade	8.3%
BB	5.9%
B	1.7%
CCC	0.1%
Below CCC	0.1%
Non-rated	0.5%
Cash and Cash Equivalents and Equities	2.7%

Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's.

DISCLOSURE OF EXPENSES

Ivy Funds

(UNAUDITED)

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 Illustration of Fund Expenses for each Fund is 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, 2010.

Actual Expenses

The first line for each share class in each table 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 in each table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of five percent per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this five percent hypothetical example with the five percent hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second line of each share class in the tables is useful in comparing ongoing costs only, and will not 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.

ILLUSTRATION OF FUND EXPENSES

Ivy Bond Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,062.80	1.13%		$	5.88
Class B	$1,000	$1,057.20	2.19%		$	11.31
Class C	$1,000	$1,059.00	1.84%		$	9.47
Class E	$1,000	$1,062.40	1.21%		$	6.29
Class I	$1,000	$1,064.50	0.82%		$	4.23
Class Y	$1,000	$1,063.30	1.05%		$	5.47
Based on 5% Return(2)
Class A	$1,000	$1,019.40	1.13%		$	5.76
Class B	$1,000	$1,014.10	2.19%		$	11.08
Class C	$1,000	$1,015.82	1.84%		$	9.27
Class E	$1,000	$1,019.00	1.21%		$	6.16
Class I	$1,000	$1,020.98	0.82%		$	4.14
Class Y	$1,000	$1,019.79	1.05%		$	5.35

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)  

PREFERRED STOCKS		Shares		Value
Diversified REITs - 0.1%
PS Business Parks, Inc., 7.0% Cumulative (A)			11	$	264
Specialized REITs - 0.0%
Public Storage, Inc., 6.25% Cumulative (A)			2		55
TOTAL PREFERRED STOCKS - 0.1%				$	319
(Cost: $315)
CORPORATE DEBT SECURITIES	Principal
Aerospace & Defense - 0.9%
L-3 Communications Corporation,
5.875%, 1-15-15			$ 2,475		2,531
Agricultural Products - 0.3%
Corn Products International, Inc.,
3.200%, 11-1-15			805		821
Airlines - 1.2%
Continental Airlines 2001-1 A-1,
8.048%, 11-1-20			1,104		1,192
Continental Airlines Pass Through Certificates, Series 2009-2,
7.250%, 11-10-19			760		828
United Air Lines, Inc.,
10.400%, 11-1-16			1,111		1,239
					3,259
Application Software - 0.5%
Intuit Inc.,
5.750%, 3-15-17			1,280		1,451
Asset-Backed Security - 4.6%
Associates Manufactured Housing Contract Pass-Through Certificates,
7.725%, 6-15-28 (B)			11		11
Capital Auto Receivables Asset Trust 2007-1,
6.570%, 9-16-13 (C)			625		646
Capital Auto Receivables Asset Trust 2007-3,
8.000%, 3-17-14 (C)			480		515
CarMax Auto Owner Trust 2007-3,
7.580%, 3-17-14			380		403
Chrysler Financial Auto Securitization Trust 2010-A,
1.650%, 11-8-13			1,740		1,758
CountryPlace Manufactured Housing Contract Trust 2005-1,
5.200%, 12-15-35 (B)(C)			300		251
Ford Credit Auto Lease Trust, Series 2010-A, Class A-2,
1.040%, 3-15-13 (D)			1,406		1,407
Ford Credit Auto Owner Trust 2007-A,
7.050%, 12-15-13 (C)			175		185
Ford Credit Auto Owner Trust 2009-B A3,
2.790%, 8-15-13			350		356
GE Capital Credit Card Master Note Trust, Series 2009-2,
3.690%, 7-15-15			870		912
GE Capital Credit Card Master Note Trust, Series 2009-3,
2.540%, 9-15-14			485		494
GE Capital Credit Card Master Note Trust, Series 2010-2 Class A,
4.700%, 3-15-20			830		913

Green Tree Financial Corporation,
6.400%, 10-15-18	65		66
Honda Auto Receivables 2010-1 Owner Trust,
0.620%, 2-21-12	2,485		2,486
HSBC Credit Card Master Note Trust (USA) I, Series 2007-2 Class A,
0.807%, 7-15-13 (B)	1,000		1,000
JPMorgan Auto Receivables Trust 2007-A,
7.090%, 2-15-14 (C)	148		148
Origen Manufactured Housing Contract Trust 2004-A,
5.700%, 1-15-35	100		108
Origen Manufactured Housing Contract Trust 2004-B,
5.730%, 11-15-35 (B)	1,016		1,039
Origen Manufactured Housing Contract Trust 2005-A:
4.490%, 5-15-18	21		21
5.860%, 6-15-36 (B)	108		113
Origen Manufactured Housing Contract Trust 2005-B,
5.605%, 5-15-22	100		104
			12,936
Biotechnology - 0.3%
Genzyme Corporation,
3.625%, 6-15-15 (D)	900		955
Broadcasting - 0.4%
NBC Universal, Inc.,
4.375%, 4-1-21 (D)	1,165		1,179
Cable & Satellite - 0.5%
Cox Communications, Inc.,
7.125%, 10-1-12	450		498
Time Warner Cable Inc.,
7.500%, 4-1-14	605		714
			1,212
CMBS Other - 6.7%
Bear Stearns Commercial Mortgage Securities Inc., Commercial Mortgage       Pass-Through Certificates, Series 2004-TOP16 Class A-4,
4.320%, 2-13-46	682		690
Bear Stearns Commercial Mortgage Securities Trust 2004-PWR4,
5.468%, 6-11-41 (B)	1,598		1,756
Carey Commercial Mortgage Trust Series 2002-1,
5.970%, 9-20-19 (D)	244		248
Commerical Mortgage Asset Trust,
6.975%, 1-17-32	2,000		2,184
Credit Suisse First Boston Mortgage Securities Corp., Commercial       Mortgage Pass-Through Certificates, Series 2005-C2,
4.691%, 4-15-37	5,495		5,592
Hometown Commercial Capital, LLC Hometown Commercial Mortgage       Pass-Through Notes 2006-1,
5.506%, 11-11-38 (C)	421		191
Hometown Commercial Trust 2007-1, Commercial Mortgage-Backed       Notes, Series 2007-1,
6.057%, 6-11-39 (C)	405		108
J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial       Mortgage Pass-Through Certificates, Series 2005-LDP2,
4.625%, 3-15-46	363		369
J.P. Morgan Chase Commercial Mortgage Securities Trust 2009-IWST,       Commercial Mortgage Pass-Through Certificates, Series 2009-IWST:
2.001%, 12-5-27 (B)(C)	6,187		872
7.694%, 12-5-27 (B)(D)	1,500		1,732
LB-UBS Commercial Mortgage Trust 2003-C7,
5.264%, 7-15-37 (B)(D)	1,000		929
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities       Pass-Through Certificates, Series 2005-RR4:
5.880%, 11-28-35 (B)(C)	105		25
5.880%, 11-28-35 (B)(C)	155		9
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities       Pass-Through Certificates, Series 2005-RR4 (Interest Only),
1.150%, 11-28-35 (B)(C)(E)	1,815		25
Nomura Asset Securities Corporation, Commercial Mortgage       Pass-Through Certificates, Series 1998-D6,
6.000%, 3-15-30 (D)	500		508
OBP Depositor LLC Trust, Commercial Mortgage Pass-Through       Certificates, Ser 2010-OBP,
4.646%, 7-15-45 (D)	1,255		1,357
TIAA Seasoned Commercial Mortgage Trust 2007-C4,
5.640%, 8-15-39 (B)	959		984
Vornado DP LLC Trust 2010, Commercial Mortgage Pass-Through       Certificates, Series 2010-VNO,
5.280%, 9-13-28 (D)	1,200		1,234
			18,813
Communications Equipment - 0.2%
Cisco Systems, Inc.,
5.500%, 1-15-40	480		528
Consumer Finance - 0.9%
American Express Bank, FSB (Federal Deposit Insurance Corporation),
3.150%, 12-9-11 (F)	250		258
Discover Financial Services,
6.450%, 6-12-17	660		710
Ford Motor Credit Company LLC,
5.625%, 9-15-15	1,500		1,543
			2,511
Data Processing & Outsourced Services - 0.6%
Fiserv, Inc.,
3.125%, 10-1-15	1,675		1,701
Diversified Banks - 0.3%
Sovereign Bank (Federal Deposit Insurance Corporation),
2.750%, 1-17-12 (F)	705		726
Diversified REITs - 0.5%
Allied Capital Corporation,
6.625%, 7-15-11	685		698
DEXUS Property Group,
7.125%, 10-15-14 (C)	720		793
			1,491
Electric Utilities - 0.7%
Columbus Southern Power Company,
0.692%, 3-16-12 (B)	240		241
Southwestern Electric Power Company,
5.550%, 1-15-17	1,645		1,802
			2,043
Fertilizers & Agricultural Chemicals - 0.8%
Mosaic Company (The),
7.625%, 12-1-16 (D)	2,000		2,169
Food Distributors - 0.3%
Cargill, Inc.,
5.200%, 1-22-13 (D)	725		786
Gas Utilities - 0.2%
Ferrellgas, L.P. and Ferrellgas Finance Corp.,
9.125%, 10-1-17	500		542
Gold - 0.7%
Gold Fields Orogen Holding Limited,
4.875%, 10-7-20 (C)	2,000		1,986
Health Care Equipment - 0.2%
Boston Scientific Corporation,
5.450%, 6-15-14	650		690
Health Care Services - 0.6%
Laboratory Corporation of America Holdings,
5.500%, 2-1-13	215		232
Medco Health Solutions, Inc.,
7.125%, 3-15-18	1,030		1,265
			1,497
Independent Power Producers & Energy Traders - 0.6%
NRG Energy, Inc.:
8.500%, 6-15-19	500		527
8.250%, 9-1-20 (D)	1,000		1,031
			1,558
Industrial Conglomerates - 1.1%
General Electric Capital Corporation (Federal Deposit Insurance Corporation):
1.625%, 1-7-11 (F)	1,415		1,421
3.000%, 12-9-11 (F)	305		314
Tyco International Finance S.A.:
4.125%, 10-15-14	305		332
8.500%, 1-15-19	845		1,120
			3,187
Insurance Brokers - 0.5%
Aon Corporation,
3.500%, 9-30-15	1,350		1,376
Integrated Oil & Gas - 1.4%
Shell International Finance B.V.,
3.100%, 6-28-15	1,970		2,075
Total Capital,
4.450%, 6-24-20	1,635		1,789
			3,864
Integrated Telecommunication Services - 2.1%
Frontier Communications Corporation:
7.875%, 4-15-15	1,305		1,409
8.250%, 4-15-17	260		284
Qwest Communications International Inc.,
7.125%, 4-1-18 (D)	1,000		1,050
Verizon Wireless Capital LLC,
5.550%, 2-1-14	1,375		1,556
Windstream Corp.,
7.750%, 10-15-20 (D)	1,500		1,511
			5,810
Investment Banking & Brokerage - 2.9%
Goldman Sachs Group, Inc. (The):
5.150%, 1-15-14	485		527
6.150%, 4-1-18	1,015		1,126
Merrill Lynch & Co., Inc.,
6.400%, 8-28-17	1,650		1,805
Morgan Stanley:
6.000%, 5-13-14	1,255		1,378
6.250%, 8-28-17	1,100		1,203
5.500%, 7-24-20	880		907
Morgan Stanley (Federal Deposit Insurance Corporation),
2.900%, 12-1-10 (F)	1,150		1,155
			8,101
Life & Health Insurance - 2.0%
StanCorp Financial Group, Inc.:
6.875%, 10-1-12	450		481
6.900%, 6-1-67	300		274
Symetra Financial Corporation:
6.125%, 4-1-16 (C)	1,150		1,190
8.300%, 10-15-37 (C)	885		789
Unum Group:
7.125%, 9-30-16	2,000		2,308
5.625%, 9-15-20	500		514
			5,556
Life Sciences Tools & Services - 0.4%
Bio-Rad Laboratories, Inc.,
6.125%, 12-15-14	1,190		1,214
Metal & Glass Containers - 0.4%
Ball Corporation:
7.125%, 9-1-16	455		491
7.375%, 9-1-19	500		544
			1,035
Multi-Utilities - 0.4%
CMS Energy Corporation,
4.250%, 9-30-15	1,000		1,009
Oil & Gas Equipment & Services - 0.2%
Smith International, Inc.,
8.625%, 3-15-14	500		609
Oil & Gas Exploration & Production - 0.6%
QEP Resources, Inc.,
6.875%, 3-1-21	1,500		1,624
Oil & Gas Refining & Marketing - 1.2%
NuStar Logistics, L.P.,
7.650%, 4-15-18	2,000		2,427
Whiting Petroleum Corporation,
6.500%, 10-1-18	1,000		1,023
			3,450
Oil & Gas Storage & Transportation - 1.7%
El Paso Corporation,
7.250%, 6-1-18	465		501
El Paso Pipeline Partners Operating Company, L.L.C.,
6.500%, 4-1-20	1,275		1,376
Kinder Morgan Energy Partners, L.P.,
9.000%, 2-1-19	615		801
Sunoco Logistics Partners Operations L.P.,
6.850%, 2-15-40	1,265		1,383
Williams Partners L.P.,
7.250%, 2-1-17	770		917
			4,978
Other Diversified Financial Services - 1.4%
Bank of America Corporation,
7.375%, 5-15-14	540		621
Citigroup Inc.:
6.500%, 8-19-13	375		414
6.010%, 1-15-15	1,080		1,188
4.750%, 5-19-15	1,540		1,621
			3,844
Other Mortgage-Backed Securities - 3.3%
Asset Securitization Corporation,
7.674%, 2-14-43 (B)	170		181
Asset Securitization Corporation (Interest Only),
1.458%, 10-13-26 (B)(D)(E)	652		7
Banc of America Alternative Loan Trust 2005-10:
5.663%, 11-25-35 (B)	260		33
5.667%, 11-25-35 (B)	127		10
Banc of America Alternative Loan Trust 2005-12,
5.790%, 1-25-36 (B)	274		25
Banc of America Alternative Loan Trust 2006-8,
6.245%, 11-25-46 (B)	8		––	*
Banc of America Mortgage 2007-1 Trust,
6.000%, 3-25-37	162		13
BlackRock Capital Finance,
7.750%, 9-25-26 (D)	83		17
C-Bass 2006-CB2 Trust,
5.860%, 12-25-36	530		262
C-Bass 2006-MH1 Trust:
6.240%, 10-25-36 (B)(D)	90		91
6.250%, 10-25-36 (B)(D)	170		175
CD 2006-CD2 Mortgage Trust,
5.805%, 1-15-46 (B)(C)	710		697
Cendant Mortgage Corporation and Bishop's Gate Residential       Mortgage Trust,
6.250%, 6-25-32 (C)	56		33
CHL Mortgage Pass-Through Trust 2004-J4,
5.250%, 5-25-34	595		374
Citibank Omni Master Trust Class 2009-A17,
4.900%, 11-15-18 (D)	1,160		1,254
CitiMortgage Alternative Loan Trust, Series 2007-A7,
6.250%, 7-25-37	364		59
Conseco Finance Securitizations Corp. Series 2002-1,
6.681%, 12-1-33 (B)	485		513
CWHEQ Home Equity Loan Trust, Series 2006-S6,
5.962%, 3-25-34 (B)	156		56
CWHEQ Home Equity Loan Trust, Series 2007-S2,
5.934%, 5-25-37 (B)	420		203
First Horizon Mortgage Pass-Through Trust 2003-8,
5.137%, 10-25-33 (B)	74		33
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage       Securitization 2005-A LLC:
5.250%, 4-25-32	146		112
5.401%, 4-25-32 (B)	216		94
Global Mortgage Securitization Ltd. and Global Mortgage       Securitization, LLC:
5.250%, 11-25-32 (C)	214		167
5.250%, 11-25-32 (C)	184		147
GMACM Home Equity Loan Trust 2006-HE3,
6.088%, 10-25-36 (B)	390		220
GMACM Home Equity Loan Trust 2007-HE1,
5.952%, 8-25-37 (B)	570		296
Harley-Davidson Motorcycle Trust 2009-4,
1.160%, 10-15-12	418		419
Morgan Stanley Capital I Trust 2004-TOP15,
5.030%, 6-13-41	1,000		1,042
Morgan Stanley Capital I Trust 2007-HQ12,
5.812%, 4-12-49 (B)	1,135		1,145
National Collegiate Trust 1997-S2 (The),
7.240%, 9-20-14	34		15
RALI Series 2003-QS10 Trust,
5.750%, 5-25-33	203		151
RASC Series 2003-KS10 Trust,
6.410%, 12-25-33	68		15
RESI Finance Limited Partnership 2003-C and RESI Finance       DE Corporation 2003-C,
1.657%, 9-10-35 (B)(C)	726		510
TimberStar Trust I,
6.208%, 10-15-36 (D)	560		586
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.250%, 8-25-33 (D)	212		103
			9,058
Other Non-Agency REMIC/CMO - 0.0%
Banco Hipotecario Nacional,
7.916%, 7-25-09 (C)	7		––	*
Mellon Residential Funding,
6.750%, 6-25-28	12		12
			12
Pharmaceuticals - 0.7%
Pfizer Inc.,
2.242%, 3-15-11 (B)	500		504
Valeant Pharmaceuticals International,
6.750%, 10-1-17 (D)	1,100		1,122
			1,626
Property & Casualty Insurance - 0.8%
Fund American Companies, Inc.,
5.875%, 5-15-13	560		588
Liberty Mutual Group, Inc.,
7.300%, 6-15-14 (D)	1,000		1,105
Liberty Mutual Holding Company Inc.,
7.800%, 3-15-37 (C)	360		340
XL Capital Finance (Europe) plc,
6.500%, 1-15-12	180		188
			2,221
Railroads - 0.4%
BNSF Funding Trust I,
6.613%, 12-15-55	975		980
Residential REITs - 0.4%
BRE Properties, Inc.,
5.200%, 3-15-21	1,115		1,135
Retail REITs - 0.4%
Westfield Capital Corporation Limited, WT Finance (Aust) Pty Limited       and WEA Finance LLC,
4.375%, 11-15-10 (D)	335		336
Westfield Group,
7.500%, 6-2-14 (D)	600		699
			1,035
Specialized Finance - 0.5%
International Lease Finance Corporation,
6.500%, 9-1-14 (D)	1,300		1,394
Specialized REITs - 1.1%
Health Care REIT, Inc.,
4.700%, 9-15-17	1,595		1,611
Healthcare Realty Trust Incorporated,
5.125%, 4-1-14	824		873
Nationwide Health Properties, Inc.,
6.250%, 2-1-13	600		651
			3,135
Systems Software - 0.7%
Oracle Corporation,
5.375%, 7-15-40 (D)	1,710		1,838
Tobacco - 1.1%
Altria Group, Inc.,
9.700%, 11-10-18	1,700		2,301
Reynolds American Inc.:
7.250%, 6-1-12	320		346
7.625%, 6-1-16	380		446
			3,093
Wireless Telecommunication Service - 0.3%
Crown Castle International Corp.,
6.113%, 1-15-20 (D)	850		939
TOTAL CORPORATE DEBT SECURITIES - 48.0%		$	133,508
(Cost: $130,189)
OTHER GOVERNMENT SECURITIES - 1.7%
Canada
Province of Manitoba,
2.625%, 7-15-15	1,275		1,343
Province of Ontario,
2.700%, 6-16-15	3,300		3,457
(Cost: $4,572)		$	4,800

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations - 1.8%
Federal Home Loan Mortgage Corporation,
3.750%, 6-28-13	420		455
Federal National Mortgage Association,
0.875%, 1-12-12	4,600		4,625
			5,080
Mortgage-Backed Obligations - 30.0%
Fannie Mae Structured Pass-Through Certificates, Series 2010-M5       Class A2,
2.806%, 7-25-20	2,560		2,586
Federal Home Loan Mortgage Corporation Fixed Rate Participation       Certificates:
3.342%, 12-25-19	1,294		1,365
6.500%, 9-1-32	129		145
6.000%, 11-1-33	246		270
5.500%, 5-1-34	121		131
5.500%, 5-1-34	75		82
5.500%, 6-1-34	846		906
5.000%, 9-1-34	20		21
5.500%, 9-1-34	62		67
5.000%, 10-1-34 TBA	2,850		2,994
5.500%, 10-1-34	202		218
5.500%, 7-1-35	231		247
5.500%, 7-1-35	125		133
5.500%, 10-1-35 TBA	2,685		2,848
5.500%, 10-1-35	337		363
5.000%, 11-1-35	1,896		2,004
4.500%, 10-1-37	9,000		9,357
7.000%, 12-1-37	304		339
5.500%, 2-1-39	883		941
5.000%, 3-1-40	968		1,036
5.000%, 3-1-40	974		1,032
5.000%, 3-1-40	957		1,024
5.000%, 3-1-40	235		251
5.000%, 8-1-40	996		1,047
Federal National Mortgage Association Fixed Rate Pass-Through       Certificates:
5.500%, 1-1-17	69		75
6.000%, 9-1-17	50		54
5.500%, 3-1-18	51		55
5.000%, 6-1-18	193		206
5.000%, 7-1-18	75		81
4.500%, 10-1-19 TBA	8,000		8,415
5.000%, 7-1-23	891		947
4.000%, 10-1-23 TBA	4,000		4,174
4.500%, 4-1-25	933		982
7.500%, 5-1-31	40		46
7.000%, 9-1-31	23		27
7.000%, 11-1-31	53		60
6.500%, 12-1-31	28		31
7.000%, 2-1-32	45		51
7.000%, 3-1-32	53		60
6.500%, 4-1-32	13		15
6.500%, 5-1-32	15		16
6.500%, 7-1-32	40		45
6.500%, 8-1-32	32		36
6.500%, 8-1-32	32		35
6.500%, 9-1-32	56		63
6.500%, 9-1-32	21		24
6.000%, 10-1-32	73		82
6.500%, 10-1-32	73		81
6.000%, 11-1-32	72		80
6.000%, 3-1-33	58		64
5.500%, 4-1-33	102		110
6.000%, 4-1-33	116		127
5.500%, 5-1-33	75		81
6.000%, 10-1-33	129		143
5.500%, 1-1-34	64		69
6.000%, 1-1-34	251		275
5.500%, 3-1-34	107		117
5.500%, 3-1-34	37		39
5.500%, 4-1-34	115		125
5.500%, 4-1-34	29		31
5.000%, 5-1-34	42		45
5.500%, 5-1-34	77		83
4.500%, 10-1-34 TBA	3,000		3,124
5.500%, 10-1-34 TBA	3,000		3,189
5.500%, 11-1-34	958		1,028
6.000%, 11-1-34	355		388
5.000%, 12-1-34	2,470		2,623
5.500%, 1-1-35	388		418
5.500%, 2-1-35	128		138
5.500%, 4-1-35	678		729
5.500%, 6-1-35	56		60
5.000%, 7-1-35	123		130
5.000%, 7-1-35	67		71
5.000%, 7-1-35	62		66
5.000%, 7-1-35	27		29
5.500%, 8-1-35	66		70
5.500%, 10-1-35	607		661
5.500%, 11-1-35	691		739
5.000%, 2-1-36	379		401
5.500%, 9-1-36	400		429
6.500%, 11-1-36	1,409		1,544
6.000%, 8-1-37	772		834
6.000%, 9-1-37	431		471
5.500%, 3-1-38	737		799
5.000%, 4-1-38	902		968
5.500%, 5-1-38	1,082		1,151
6.000%, 10-1-38	1,776		1,918
6.000%, 12-1-38	815		884
5.000%, 12-1-39	957		1,026
5.500%, 12-1-39	1,343		1,441
5.000%, 3-1-40	1,952		2,070
4.500%, 4-1-40	985		1,036
4.500%, 10-1-40	2,000		2,085
Government National Mortgage Association Agency REMIC/CMO:
5.429%, 12-16-23 (B)	1,366		1,414
4.408%, 1-16-25	473		483
Government National Mortgage Association Agency REMIC/CMO       (Interest Only), (E)
0.728%, 6-17-45 (B)	3,820		114
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
5.000%, 10-1-34 TBA	440		469
5.500%, 7-15-38	671		724
5.500%, 10-15-38	545		597
5.500%, 2-15-39	459		496
5.000%, 1-15-40	979		1,047
5.000%, 7-15-40	997		1,063
			83,384
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 31.8%		$	88,464
(Cost: $87,052)

UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations - 0.5%
United States Treasury Notes,
1.875%, 7-15-13 (G)	1,306				1,388
Treasury Obligations - 15.3%
United States Treasury Bonds:
5.375%, 2-15-31 (H)			1,775		2,285
4.375%, 5-15-40		15,025			16,870
United States Treasury Notes:
0.375%, 8-31-12			550		550
1.375%, 1-15-13			1,000		1,020
1.125%, 6-15-13			2,630		2,668
1.000%, 7-15-13			500		505
0.750%, 9-15-13			1,500		1,505
1.250%, 8-31-15			3,840		3,840
1.875%, 8-31-17			1,610		1,609
2.625%, 8-15-20		11,505			11,611
					42,463
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 15.8%				$	43,851
(Cost: $43,075)
SHORT-TERM SECURITIES
Commercial Paper (I) - 14.2%
Clorox Co.:
0.350%, 10-18-10			5,000		4,999
0.340%, 11-4-10			3,000		2,999
CVS Caremark Corporation,
0.300%, 10-6-10			4,500		4,500

General Mills, Inc.,
0.290%, 10-18-10	5,000		4,999
Hewlett-Packard Company,
0.150%, 10-4-10	6,000		6,000
IBM International Group Capital LLC (International Business Machines       Corporation),
0.000%, 10-1-10	7,706		7,706
Praxair, Inc.,
0.140%, 10-5-10	3,298		3,298
Wal-Mart Stores, Inc.,
0.190%, 10-27-10	5,000		4,999
			39,500
Master Note - 1.8%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (J)	4,986		4,986
TOTAL SHORT-TERM SECURITIES - 16.0%		$	44,486
(Cost: $44,486)
TOTAL INVESTMENT SECURITIES - 113.4%		$	315,428
(Cost: $309,689)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (13.4%)			(37,262	)
NET ASSETS - 100.0%		$	278,166

Notes to Schedule of Investments

*Not shown due to rounding.

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

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010.

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $9,627 or 3.5% of net assets.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $25,762 or 9.3% of net assets.

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

(F)Security is fully guaranteed by the Federal Deposit Insurance Corporation for both interest and principal under the Debt Guarantee Program of the Temporary Liquidity Guarantee Program. The guarantee expires at the earlier of the security's maturity date or December 31, 2012.

(G)The interest rate for this security is a stated rate, but the interest payments are determined by multiplying the inflation-adjusted principal by one half of the stated rate for each semiannual interest payment date.

(H)Securities serve as collateral for the following open futures contracts at September 30, 2010:

Description	Type	Expiration Date	Number of Contracts	Market Value			Unrealized Depreciation
U.S. 30 Year Treasury Bond	Short	12-21-10	––*		$	(8,023)	$(173)

(I)Rate shown is the yield to maturity at September 30, 2010.

(J)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

The following acronyms are used throughout this schedule:
CMBS = Commercial Mortgage-Backed Security
CMO = Collateralized Mortgage Obligation
REIT = Real Estate Investment Trust
REMIC = Real Estate Mortgage Investment Conduit
TBA = To Be Announced

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Capital Appreciation Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	90.2%
Information Technology	27.2%
Industrials	15.1%
Energy	12.0%
Consumer Discretionary	10.6%
Financials	9.6%
Consumer Staples	7.4%
Health Care	5.2%
Materials	3.1%
Cash and Cash Equivalents	9.8%

Lipper Rankings

Category: Lipper Large-Cap Growth Funds	Rank	Percentile
1 Year	703/852	83
3 Year	683/732	94
5 Year	470/614	77
10 Year	73/344	22

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Apple Inc.	Information Technology
Google Inc., Class A	Information Technology
Microsoft Corporation	Information Technology
Schlumberger Limited	Energy
Visa Inc., Class A	Information Technology
Precision Castparts Corp.	Industrials
Hewlett-Packard Company	Information Technology
Transocean Inc.	Energy
Costco Wholesale Corporation	Consumer Staples
Halliburton Company	Energy

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Capital Appreciation Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10			Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000		$	968.70	1.27%	$	6.30
Class B	$1,000		$	963.20	2.17%	$	10.70
Class C	$1,000		$	964.70	1.95%	$	9.63
Class E	$1,000		$	968.80	1.15%	$	5.71
Class I	$1,000		$	970.10	0.89%	$	4.43
Class Y	$1,000		$	968.90	1.14%	$	5.61
Based on 5% Return(2)
Class A	$1,000		$	1,018.70	1.27%	$	6.46
Class B	$1,000		$	1,014.21	2.17%	$	10.98
Class C	$1,000		$	1,015.29	1.95%	$	9.87
Class E	$1,000		$	1,019.30	1.15%	$	5.86
Class I	$1,000		$	1,020.60	0.89%	$	4.55
Class Y	$1,000		$	1,019.37	1.14%	$	5.76

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Capital Appreciation Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Aerospace & Defense - 7.7%
Boeing Company (The)		82	$	5,456
General Dynamics Corporation		90		5,653
Honeywell International Inc.		110		4,833
Precision Castparts Corp.		124		15,792
Raytheon Company		42		1,920
Rockwell Collins, Inc.		125		7,281
				40,935
Air Freight & Logistics - 2.1%
FedEx Corporation		80		6,840
United Parcel Service, Inc., Class B		70		4,668
				11,508
Apparel Retail - 0.6%
American Eagle Outfitters, Inc.		220		3,291
Apparel, Accessories & Luxury Goods - 1.7%
Under Armour, Inc., Class A (A)		207		9,301
Asset Management & Custody Banks - 3.4%
BlackRock, Inc., Class A		30		5,108
Invesco Ltd.		280		5,944
Janus Capital Group Inc.		635		6,953
				18,005
Auto Parts & Equipment - 1.4%
BorgWarner Inc. (A)		140		7,367
Biotechnology - 2.3%
Gilead Sciences, Inc. (A)		310		11,039
Vertex Pharmaceuticals Incorporated (A)		40		1,383
				12,422
Casinos & Gaming - 0.6%
Wynn Resorts, Limited		40		3,471
Communications Equipment - 2.3%
Cisco Systems, Inc. (A)		300		6,570
QUALCOMM Incorporated		125		5,640
				12,210
Computer Hardware - 8.7%
Apple Inc. (A)		120		34,049
Hewlett-Packard Company		310		13,042
				47,091
Computer Storage & Peripherals - 1.3%
NetApp, Inc. (A)		135		6,722
Construction & Engineering - 1.3%
Fluor Corporation		140		6,934
Consumer Finance - 0.8%
American Express Company		100		4,203
Data Processing & Outsourced Services - 4.3%
MasterCard Incorporated, Class A		26		5,824
Visa Inc., Class A		230		17,080
				22,904
Department Stores - 0.5%
Kohl's Corporation (A)		50		2,634
Diversified Chemicals - 0.4%
Dow Chemical Company (The)		85		2,334
Electrical Components & Equipment - 0.3%
First Solar, Inc. (A)		11		1,621
Fertilizers & Agricultural Chemicals - 0.7%
Monsanto Company		75		3,595
Footwear - 1.5%
NIKE, Inc., Class B		100		8,014
Health Care Distributors - 1.1%
McKesson Corporation		92		5,684
Health Care Equipment - 1.1%
Hologic, Inc. (A)		379		6,068
Home Improvement Retail - 0.6%
Lowe's Companies, Inc.		150		3,344
Homebuilding - 0.5%
Pulte Homes, Inc. (A)		280		2,453
Hotels, Resorts & Cruise Lines - 1.9%
Carnival Corporation		14		546
Starwood Hotels & Resorts Worldwide, Inc.		175		9,196
				9,742
Household Products - 2.0%
Colgate-Palmolive Company		45		3,459
Procter & Gamble Company (The)		120		7,196
				10,655
Human Resource & Employment Services - 1.0%
Manpower Inc.		105		5,481
Hypermarkets & Super Centers - 2.2%
Costco Wholesale Corporation		183		11,815
Industrial Conglomerates - 1.5%
General Electric Company		100		1,625
Textron Inc.		300		6,168
				7,793
Integrated Oil & Gas - 0.9%
Exxon Mobil Corporation		30		1,854
Occidental Petroleum Corporation		40		3,132
				4,986
Internet Software & Services - 5.2%
Google Inc., Class A (A)		54		28,392
Investment Banking & Brokerage - 3.6%
Charles Schwab Corporation (The)		625		8,687
Goldman Sachs Group, Inc. (The)		60		8,675
Morgan Stanley		90		2,221
				19,583
Oil & Gas Drilling - 2.3%
Transocean Inc. (A)		190		12,215
Oil & Gas Equipment & Services - 5.8%
Halliburton Company		350		11,575
Schlumberger Limited		318		19,593
				31,168
Oil & Gas Exploration & Production - 3.0%
Noble Energy, Inc.		60		4,505
Southwestern Energy Company (A)		165		5,518
Ultra Petroleum Corp. (A)		138		5,793
				15,816
Other Diversified Financial Services - 1.5%
JPMorgan Chase & Co.		215		8,185
Pharmaceuticals - 0.7%
Allergan, Inc.		55		3,659
Railroads - 1.5%
Union Pacific Corporation		98		7,976
Restaurants - 1.0%
McDonald's Corporation		75		5,588
Semiconductors - 0.8%
Microchip Technology Incorporated		140		4,403
Soft Drinks - 1.7%
Coca-Cola Company (The)		125		7,315
PepsiCo, Inc.		25		1,661
				8,976
Specialized Consumer Services - 0.3%
H&R Block, Inc.		105		1,360
Specialized Finance - 0.3%
CME Group Inc.		6		1,615
Specialty Chemicals - 2.0%
Albemarle Corporation		61		2,855
Ecolab Inc.		150		7,611
				10,466
Systems Software - 4.3%
Microsoft Corporation		940		23,021
Tobacco - 1.5%
Philip Morris International Inc.		145		8,123
TOTAL COMMON STOCKS - 90.2%			$	483,129
(Cost: $434,823)

SHORT-TERM SECURITIES	Principal
Commercial Paper (B) - 6.5%
Bemis Company, Inc.,
0.260%, 10-4-10		$ 5,000		5,000
Clorox Co.,
0.350%, 10-20-10		4,000		3,999
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
0.230%, 10-4-10		5,000		5,000
Hewlett-Packard Company,
0.170%, 10-6-10		5,000		5,000
IBM International Group Capital LLC (International Business       Machines Corporation),
0.000%, 10-1-10		2,274		2,274
Illinois Tool Works Inc.,
0.170%, 10-6-10		5,000		5,000
Straight-A Funding, LLC (Federal Financing Bank):
0.170%, 10-7-10		3,000		3,000
0.210%, 11-5-10		5,100		5,098
				34,371
Master Note - 0.5%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (C)		2,674		2,674
United States Government Agency Obligations - 1.9%
Overseas Private Investment Corporation:
0.200%, 11-15-10 (C)		7,200		7,200
0.200%, 11-15-10 (C)		3,182		3,182
				10,382
TOTAL SHORT-TERM SECURITIES - 8.9%			$	47,427
(Cost: $47,427)
TOTAL INVESTMENT SECURITIES - 99.1%			$	530,556
(Cost: $482,250)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.9%				4,800
NET ASSETS - 100.0%			$	535,356

Notes to Schedule of Investments

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

(B)Rate shown is the yield to maturity at September 30, 2010.

(C)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Core Equity Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	91.9%
Information Technology	20.4%
Industrials	16.0%
Consumer Discretionary	15.4%
Consumer Staples	13.8%
Energy	10.4%
Financials	8.4%
Health Care	5.1%
Telecommunication Services	1.6%
Materials	0.8%
Cash and Cash Equivalents	8.1%

Lipper Rankings

Category: Lipper Large-Cap Core Funds	Rank	Percentile
1 Year	247/979	26
3 Year	203/831	25
5 Year	123/700	18
10 Year	273/428	64

Past performance is no guarantee of future results. Rankings are for Class C shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Apple Inc.	Information Technology
CBS Corporation, Class B	Consumer Discretionary
Union Pacific Corporation	Industrials
Philip Morris International Inc.	Consumer Staples
ConocoPhillips	Energy
JPMorgan Chase & Co.	Financials
Amgen Inc.	Health Care
General Mills, Inc.	Consumer Staples
Coca-Cola Company (The)	Consumer Staples
Halliburton Company	Energy

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Core Equity Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10		Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$	1,000.00	1.42%	$	7.10
Class B	$1,000	$	995.10	2.50%	$	12.47
Class C	$1,000	$	996.40	2.17%	$	10.88
Class E	$1,000	$	1,000.00	1.35%	$	6.80
Class I	$1,000	$	1,002.10	0.99%	$	5.01
Class Y	$1,000	$	1,000.00	1.25%	$	6.30
Based on 5% Return(2)
Class A	$1,000	$	1,017.94	1.42%	$	7.16
Class B	$1,000	$	1,012.56	2.50%	$	12.58
Class C	$1,000	$	1,014.19	2.17%	$	10.98
Class E	$1,000	$	1,018.29	1.35%	$	6.86
Class I	$1,000	$	1,020.10	0.99%	$	5.05
Class Y	$1,000	$	1,018.78	1.25%	$	6.36

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Core Equity Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares			Value
Aerospace & Defense - 3.1%
Boeing Company (The)		65	$	4,338
Honeywell International Inc.		50		2,175
				6,513
Biotechnology - 3.4%
Amgen Inc. (A)		126		6,962
Broadcasting - 4.8%
CBS Corporation, Class B		512		8,116
Discovery Holding Company, Class A (A)		38		1,655
				9,771
Casinos & Gaming - 1.0%
Wynn Resorts, Limited		23		2,005
Communications Equipment - 3.5%
Juniper Networks, Inc. (A)		127		3,856
QUALCOMM Incorporated		38		1,706
Telefonaktiebolaget LM Ericsson, ADR		145		1,587
				7,149
Computer Hardware - 6.2%
Apple Inc. (A)		30		8,426
Hewlett-Packard Company		101		4,249
				12,675
Computer Storage & Peripherals - 1.4%
NetApp, Inc. (A)		58		2,878
Construction & Farm Machinery & Heavy Trucks - 5.5%
Caterpillar Inc.		50		3,958
Cummins Inc.		58		5,235
PACCAR Inc		46		2,234
				11,427
Consumer Finance - 2.9%
Capital One Financial Corporation		152		5,992
Department Stores - 2.6%
Macy's Inc.		237		5,482
Diversified Banks - 0.8%
Comerica Incorporated		45		1,673
Fertilizers & Agricultural Chemicals - 0.8%
Monsanto Company		37		1,749
Hotels, Resorts & Cruise Lines - 1.6%
Starwood Hotels & Resorts Worldwide, Inc.		65		3,401
Hypermarkets & Super Centers - 2.1%
Costco Wholesale Corporation		69		4,418
Industrial Machinery - 3.5%
Eaton Corporation		27		2,202
Parker Hannifin Corporation		71		4,974
				7,176
Integrated Oil & Gas - 3.7%
ConocoPhillips		133		7,655
Integrated Telecommunication Services - 1.6%
AT&T Inc.		113		3,235
Investment Banking & Brokerage - 1.2%
Lazard Group LLC		73		2,578
Motorcycle Manufacturers - 1.9%
Harley-Davidson, Inc.		139		3,964
Oil & Gas Equipment & Services - 5.1%
Halliburton Company		183		6,053
Schlumberger Limited		73		4,528
				10,581
Oil & Gas Exploration & Production - 1.6%
Noble Energy, Inc.		45		3,394
Other Diversified Financial Services - 3.5%
JPMorgan Chase & Co.		191		7,259
Packaged Foods & Meats - 3.1%
General Mills, Inc.		177		6,479
Personal Products - 1.8%
Estee Lauder Companies Inc. (The), Class A		58		3,650
Pharmaceuticals - 1.7%
Allergan, Inc.		54		3,608
Railroads - 3.9%
Union Pacific Corporation		98		7,986
Restaurants - 3.5%
McDonald's Corporation		55		4,105
YUM! Brands, Inc.		70		3,220
				7,325
Semiconductor Equipment - 4.5%
Applied Materials, Inc.		277		3,232
Lam Research Corporation (A)		143		5,998
				9,230
Semiconductors - 3.2%
Broadcom Corporation, Class A		59		2,093
Microchip Technology Incorporated		148		4,639
				6,732
Soft Drinks - 3.1%
Coca-Cola Company (The)		109		6,355
Systems Software - 1.6%
Oracle Corporation		125		3,354
Tobacco - 3.7%
Philip Morris International Inc.		138		7,751
TOTAL COMMON STOCKS - 91.9%			$	190,407
(Cost: $172,465)

SHORT-TERM SECURITIES	Principal
Commercial Paper (B) - 9.6%
Ecolab Inc.,
0.000%, 10-1-10	$	2,400		2,400
McCormick & Co. Inc.,
0.000%, 10-1-10		2,833		2,833
Nokia Corp.,
0.220%, 10-13-10		3,787		3,787
Procter & Gamble International Funding S.C.A. (Procter &       Gamble Company (The)),
0.190%, 11-1-10		6,000		5,999
W.W. Grainger, Inc.,
0.160%, 10-6-10		5,000		5,000
				20,019
Master Note - 1.3%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (C)		2,741		2,741
Municipal Obligations - Taxable - 2.0%
NC Cap Fac Fin Agy, Exempt Fac Rev Bonds (Republic       Svcs, Inc. Proj), Ser 2004 (Bank of America, N.A.),
0.270%, 10-1-10 (C)		4,000		4,000
TOTAL SHORT-TERM SECURITIES - 12.9%			$	26,760
(Cost: $26,760)
TOTAL INVESTMENT SECURITIES - 104.8%			$	217,167
(Cost: $199,225)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (4.8%)				(9,954	)
NET ASSETS - 100.0%			$	207,213

Notes to Schedule of Investments

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

(B)Rate shown is the yield to maturity at September 30, 2010.

(C)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Cundill Global Value Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

 

Asset Allocation

Stocks	92.3%
Financials	25.0%
Consumer Discretionary	19.3%
Energy	16.9%
Information Technology	14.2%
Consumer Staples	8.0%
Industrials	4.8%
Telecommunication Services	2.6%
Health Care	1.5%
Warrants	1.5%
Cash and Cash Equivalents	6.2%

Lipper Rankings

Category: Lipper Global Multi-Cap       Value Funds	Rank	Percentile
1 Year	72/83	86
3 Year	21/61	34
5 Year	33/39	83

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

North America	48.2%
United States	44.0%
Canada	4.2%
Pacific Basin	24.9%
Japan	13.5%
South Korea	6.7%
Hong Kong	4.7%
Europe	20.7%
Italy	9.1%
United Kingdom	5.3%
Other Europe	6.3%
Cash and Cash Equivalents	6.2%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Dell Inc.	United States	Information       Technology	Computer Hardware
Viacom Inc., Class B	United States	Consumer       Discretionary	Movies &       Entertainment
FedEx Corporation	United States	Industrials	Air Freight &       Logistics
ConocoPhillips	United States	Energy	Integrated Oil & Gas
Sega Sammy       Holdings Inc.	Japan	Consumer       Discretionary	Leisure Products
First Pacific Company       Limited	Hong Kong	Financials	Multi-Sector Holdings
BP plc, ADR	United Kingdom	Energy	Integrated Oil & Gas
Fairfax Financial Holdings       Limited	Canada	Financials	Multi-Line Insurance
Samsung Electronics       Co., Ltd.	South Korea	Information       Technology	Semiconductors
Bank of America       Corporation	United States	Financials	Other Diversified       Financial Services

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Cundill Global Value Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10		Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$	976.20	1.85%	$	9.19
Class B	$1,000	$	972.20	2.76%	$	13.71
Class C	$1,000	$	973.80	2.41%	$	11.94
Class E	$1,000	$	977.10	1.59%	$	7.91
Class I	$1,000	$	979.60	1.28%	$	6.33
Class Y	$1,000	$	978.70	1.20%	$	5.94
Based on 5% Return(2)
Class A	$1,000	$	1,015.80	1.85%	$	9.37
Class B	$1,000	$	1,011.21	2.76%	$	13.98
Class C	$1,000	$	1,013.00	2.41%	$	12.18
Class E	$1,000	$	1,017.09	1.59%	$	8.07
Class I	$1,000	$	1,018.65	1.28%	$	6.46
Class Y	$1,000	$	1,019.05	1.20%	$	6.06

* 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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Cundill Global Value Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)  

COMMON STOCKS	Shares		Value
Canada - 4.2%
Fairfax Financial Holdings Limited (A)		32	$	13,171
Germany - 2.0%
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A)		46		6,344
Greece - 1.0%
INTRALOT S.A. INTEGRATED LOTTERY SYSTEMS AND SERVICES (A)		843		3,264
Hong Kong - 4.7%
First Pacific Company Limited (A)		16,113		14,641
Ireland - 3.3%
Willis Group Holdings Limited		332		10,233
Italy - 9.1%
EXOR S.p.A. (A)		472		10,949
Mediaset S.p.A. (A)		790		5,599
Parmalat S.p.A. (A)		4,577		11,743
				28,291
Japan - 13.5%
Dai-ichi Mutual Life Insurance Company (The) (A)		5		6,501
FamilyMart Co., Ltd. (A)		189		6,765
Honda Motor Co., Ltd. (A)		225		7,997
Kirin Brewery Company, Limited (A)		432		6,132
Sega Sammy Holdings Inc. (A)		919		14,743
				42,138
South Korea - 2.6%
SK Telecom Co., Ltd. (A)		53		8,009
United Kingdom - 5.3%
BP plc (A)		264		1,774
BP plc, ADR		355		14,603
				16,377
United States - 39.5%
Bank of America Corporation		932		12,221
Chesapeake Energy Corporation		528		11,959
ConocoPhillips		258		14,837
Dell Inc. (B)		1,468		19,025
DIRECTV Group, Inc. (The) (B)		165		6,876
FedEx Corporation		176		15,005
GameStop Corp, Class A (B)		322		6,347
Microsoft Corporation		494		12,088
Montpelier Re Holdings Ltd.		228		3,952
Pfizer Inc.		277		4,754
Viacom Inc., Class B		426		15,407
				122,471
TOTAL COMMON STOCKS - 85.2%			$	264,939
(Cost: $220,829)

PREFERRED STOCKS
South Korea - 4.1%
Samsung Electronics Co., Ltd. (A)			26		12,645
United States - 3.0%
Chesapeake Energy Corporation,5.75% Cumulative (B)			9		9,337
TOTAL PREFERRED STOCKS - 7.1%				$	21,982
(Cost: $19,963)
WARRANTS - 1.5%
United States
JPMorgan Chase & Co.			409	$	4,768
(Cost: $5,192)
SHORT-TERM SECURITIES - 6.5%	Principal
Repurchase Agreements
J.P. Morgan Securities, Inc., Repurchase Agreement dated 9-30-10 to be       repurchased at $20,332,
0.130%, 10-1-10 (C)		$	20,332	$	20,332
(Cost: $20,332)
TOTAL INVESTMENT SECURITIES - 100.3%				$	312,021
(Cost: $266,316)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.3%)					(974	)
NET ASSETS - 100.0%				$	311,047

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2010:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Sell	Euro	Scotia Capital Inc. (USA)	16,500	11-5-10		$	––	$1,528
Sell	Euro	State Street Global Markets	3,750	1-14-11			––	340
Sell	Euro	Scotia Capital Inc. (USA)	3,700	1-28-11			––	235
Sell	Japanese Yen	State Street Global Markets	270,000	2-2-11			––	89
Sell	Japanese Yen	Royal Bank of Canada	1,011,300	2-16-11			––	238
Sell	Japanese Yen	Scotia Capital Inc. (USA)	883,000	3-2-11			––	156
Sell	Japanese Yen	Toronto-Dominion Bank (The)	964,000	3-9-11			––	79
Sell	South Korean Won	Toronto-Dominion Bank (The)	11,400,000	10-22-10			166	––
Sell	South Korean Won	Toronto-Dominion Bank (The)	1,500,000	10-22-10			––	90
Sell	South Korean Won	Royal Bank of Canada	7,400,000	10-29-10			127	––
						$	293	$2,755

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

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

(C)Collateralized by $18,142 United States Treasury Bond, 4.500% due 8-15-39; market value and accrued interest aggregate $20,876.

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

Market Sector Diversification
(as a % of net assets)
Financials	26.5%
Consumer Discretionary	19.3%
Energy	16.9%
Information Technology	14.2%
Consumer Staples	8.0%
Industrials	4.8%
Telecommunication Services	2.6%
Health Care	1.5%
Other+	6.2%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Dividend Opportunities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	95.1%
Industrials	20.0%
Energy	19.1%
Financials	12.8%
Consumer Discretionary	11.4%
Consumer Staples	10.8%
Information Technology	10.3%
Materials	4.5%
Health Care	3.7%
Telecommunication Services	1.8%
Utilities	0.7%
Cash and Cash Equivalents	4.9%

Lipper Rankings

Category: Lipper Equity Income Funds	Rank	Percentile
1 Year	225/276	82
3 Year	172/237	73
5 Year	96/195	49

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Schlumberger Limited	Energy
Microchip Technology Incorporated	Information Technology
Halliburton Company	Energy
Deere & Company	Industrials
Philip Morris International Inc.	Consumer Staples
Union Pacific Corporation	Industrials
Emerson Electric Co.	Industrials
Capital One Financial Corporation	Financials
Starwood Hotels & Resorts Worldwide, Inc.	Consumer Discretionary
JPMorgan Chase & Co.	Financials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Dividend Opportunities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10			Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000		$	988.30	1.37%	$	6.86
Class B	$1,000		$	983.30	2.31%	$	11.50
Class C	$1,000		$	985.40	2.04%	$	10.13
Class E	$1,000		$	987.60	1.37%	$	6.86
Class I	$1,000		$	990.10	0.97%	$	4.88
Class Y	$1,000		$	988.40	1.22%	$	6.06
Based on 5% Return(2)
Class A	$1,000		$	1,018.21	1.37%	$	6.96
Class B	$1,000		$	1,013.48	2.31%	$	11.68
Class C	$1,000		$	1,014.84	2.04%	$	10.28
Class E	$1,000		$	1,018.20	1.37%	$	6.96
Class I	$1,000		$	1,020.20	0.97%	$	4.95
Class Y	$1,000		$	1,018.97	1.22%	$	6.16

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Dividend Opportunities Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares			Value
Apparel, Accessories & Luxury Goods - 1.5%
V.F. Corporation		49	$	4,006
Asset Management & Custody Banks - 1.5%
T. Rowe Price Group, Inc.		81		4,055
Casinos & Gaming - 1.0%
Wynn Resorts, Limited		31		2,706
Computer Hardware - 1.9%
Hewlett-Packard Company		125		5,246
Construction & Engineering - 1.9%
Fluor Corporation		106		5,253
Construction & Farm Machinery & Heavy Trucks - 7.3%
Caterpillar Inc.		86		6,778
Cummins Inc.		40		3,637
Deere & Company		131		9,166
				19,581
Consumer Finance - 2.8%
Capital One Financial Corporation		191		7,554
Data Processing & Outsourced Services - 2.4%
Visa Inc., Class A		87		6,490
Department Stores - 1.8%
Macy's Inc.		217		5,006
Diversified Banks - 2.6%
Barclays plc, ADR		94		1,780
Wells Fargo & Company		214		5,387
				7,167
Diversified Metals & Mining - 3.4%
Rio Tinto plc, ADR		88		5,145
Southern Copper Corporation		116		4,077
				9,222
Electric Utilities - 0.7%
PPL Corporation		74		2,012
Electrical Components & Equipment - 2.8%
Emerson Electric Co.		145		7,651
Health Care Equipment - 0.7%
Stryker Corporation		36		1,802
Home Improvement Retail - 0.8%
Lowe's Companies, Inc.		103		2,301
Homebuilding - 1.3%
D.R. Horton, Inc.		306		3,398
Hotels, Resorts & Cruise Lines - 3.8%
Marriott International, Inc., Class A		97		3,474
Starwood Hotels & Resorts Worldwide, Inc.		131		6,876
				10,350
Household Products - 2.6%
Colgate-Palmolive Company		59		4,508
Procter & Gamble Company (The)		41		2,483
				6,991
Industrial Conglomerates - 1.3%
Textron Inc.		166		3,407
Industrial Machinery - 1.8%
Illinois Tool Works Inc.		103		4,862
Integrated Oil & Gas - 2.9%
ConocoPhillips		49		2,798
Exxon Mobil Corporation		81		4,987
				7,785
Integrated Telecommunication Services - 1.8%
AT&T Inc.		172		4,912
Mortgage REITs - 0.9%
Annaly Capital Management, Inc.		144		2,529
Oil & Gas Drilling - 2.9%
Seadrill Limited		104		3,018
Transocean Inc. (A)		77		4,934
				7,952
Oil & Gas Equipment & Services - 11.3%
Halliburton Company		307		10,148
National Oilwell Varco, Inc.		136		6,059
Schlumberger Limited		232		14,284
				30,491
Oil & Gas Exploration & Production - 2.0%
Apache Corporation		56		5,489
Other Diversified Financial Services - 3.9%
Bank of America Corporation		270		3,536
JPMorgan Chase & Co.		180		6,863
				10,399
Paper Packaging - 1.1%
Sonoco Products Company		87		2,894
Personal Products - 1.0%
Estee Lauder Companies Inc. (The), Class A		41		2,615
Pharmaceuticals - 3.0%
Abbott Laboratories		101		5,274
Teva Pharmaceutical Industries Limited, ADR		55		2,880
				8,154
Railroads - 4.9%
Norfolk Southern Corporation		78		4,618
Union Pacific Corporation		105		8,601
				13,219
Restaurants - 1.2%
McDonald's Corporation		42		3,122
Semiconductors - 3.9%
Microchip Technology Incorporated		331		10,417
Soft Drinks - 3.0%
Coca-Cola Company (The)		83		4,880
PepsiCo, Inc.		49		3,226
				8,106
Specialized Finance - 1.1%
CME Group Inc.		12		3,021
Systems Software - 2.1%
Microsoft Corporation		235		5,745
Tobacco - 4.2%
Altria Group, Inc.		120		2,892
Philip Morris International Inc.		156		8,761
				11,653
TOTAL COMMON STOCKS - 95.1%			$	257,563
(Cost: $221,982)

SHORT-TERM SECURITIES	Principal
Commercial Paper (B) - 4.2%
Clorox Co.,
0.350%, 10-20-10		$ 3,380		3,379
Prudential Funding LLC,
0.000%, 10-1-10		3,000		3,000
Straight-A Funding, LLC (Federal Financing Bank),
0.170%, 10-7-10		5,000		5,000
				11,379
Master Note - 2.2%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (C)		5,877		5,877
TOTAL SHORT-TERM SECURITIES - 6.4%			$	17,256
(Cost: $17,256)
TOTAL INVESTMENT SECURITIES - 101.5%			$	274,819
(Cost: $239,238)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.5%)				(4,021	)
NET ASSETS - 100.0%			$	270,798

Notes to Schedule of Investments

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

(B)Rate shown is the yield to maturity at September 30, 2010.

(C)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy European Opportunities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	96.5%
Financials	17.3%
Consumer Discretionary	13.6%
Information Technology	11.7%
Industrials	11.6%
Consumer Staples	10.5%
Energy	10.0%
Health Care	9.9%
Materials	9.9%
Telecommunication Services	2.0%
Cash and Cash Equivalents	3.5%

Lipper Rankings

Category: Lipper European Region Funds	Rank	Percentile
1 Year	56/107	52
3 Year	80/96	83
5 Year	72/87	82
10 Year	25/63	40

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

Europe	93.7%
United Kingdom	26.1%
Germany	19.2%
Switzerland	16.7%
France	8.7%
Italy	6.1%
Netherlands	4.1%
Other Europe	12.8%
Bahamas/Caribbean	1.6%
Pacific Basin	1.2%
Cash and Cash Equivalents	3.5%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Xstrata plc	United Kingdom	Materials	Diversified Metals       & Mining
Volkswagen AG	Germany	Consumer       Discretionary	Automobile       Manufacturers
StatoilHydro ASA	Norway	Energy	Integrated Oil & Gas
Nestle S.A., Registered      Shares	Switzerland	Consumer Staples	Packaged Foods       & Meats
Saipem S.p.A.	Italy	Energy	Oil & Gas Equipment       & Services
Imperial Tobacco Group plc	United Kingdom	Consumer Staples	Tobacco
Novartis AG, Registered       Shares	Switzerland	Health Care	Pharmaceuticals
Reckitt Benckiser Group plc	United Kingdom	Consumer Staples	Household       Products
Roche Holdings AG,      Genusscheine	Switzerland	Health Care	Pharmaceuticals
Siemens AG	Germany	Industrials	Industrial      Conglomerates

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy European Opportunities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,024.30	1.88%	$	9.51
Class B	$1,000	$1,019.50	2.88%	$	14.64
Class C	$1,000	$1,021.80	2.51%	$	12.74
Class E**	$1,000	$1,027.50	1.32%	$	6.69
Class I	$1,000	$1,028.40	1.19%	$	6.09
Class Y	$1,000	$1,027.00	1.46%	$	7.40
Based on 5% Return(2)
Class A	$1,000	$1,015.63	1.88%	$	9.47
Class B	$1,000	$1,010.60	2.88%	$	14.58
Class C	$1,000	$1,012.49	2.51%	$	12.68
Class E**	$1,000	$1,018.43	1.32%	$	6.66
Class I	$1,000	$1,019.10	1.19%	$	6.06
Class Y	$1,000	$1,017.75	1.46%	$	7.36

*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, 2010, and divided by 365.

**Class closed to investment.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy European Opportunities Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Austria - 1.1%
Andritz AG (A)		20	$	1,404
bwin Interactive Entertainment AG (A)		25		1,297
				2,701
Cayman Islands - 1.6%
Subsea 7 Inc. (A)(B)		200		3,909
Cyprus - 0.7%
Prosafe Production (A)(B)		727		1,843
France - 8.7%
BNP Paribas (A)		67		4,752
Gemalto N.V. (A)		50		2,052
Ingenico S.A. (A)		84		2,453
JCDecaux S.A. (A)		60		1,584
LVMH Moet Hennessy - Louis Vuitton (A)		10		1,467
Sanofi-Aventis (A)		60		3,998
VINCI (A)		100		5,012
				21,318
Germany - 15.9%
AIXTRON AG (A)		130		3,908
Bayer Aktiengesellschaft (A)		50		3,482
DaimlerChrysler AG, Registered Shares (A)		60		3,798
Dialog Semiconductor plc (A)(B)		300		4,908
HeidelbergCement AG (A)(C)		33		1,613
HeidelbergCement AG (A)		20		967
Linde Aktiengesellschaft (A)		35		4,569
MorphoSys AG (A)(B)		70		1,582
QIAGEN N.V. (A)(B)		150		2,687
SGL Carbon SE (A)(B)		50		1,748
Siemens AG (A)		50		5,306
Tognum AG (A)		50		1,114
Wirecard AG (A)		250		3,408
				39,090
Greece - 1.0%
Coca-Cola Hellenic Bottling Company S.A. (A)		90		2,376
Ireland - 2.3%
Grafton Group plc, Units (A)		873		3,630
Paddy Power plc (A)		56		1,974
				5,604
Italy - 6.1%
AUTOGRILL S.p.A. (A)		150		1,881
AZIMUT HOLDING S.p.A. (A)		102		999
DiaSorin S.p.A. (A)		31		1,268
Pirelli & C. S.p.A. (A)		300		2,442
Saipem S.p.A. (A)		150		6,008
TREVI-Finanziaria Industriale S.p.A. (A)		75		1,062
UniCredit S.p.A. (A)		500		1,277
				14,937
Netherlands - 4.1%
ASML Holding N.V., Ordinary Shares (A)		164		4,909
ING Groep N.V., Certicaaten Van Aandelen (A)		350		3,631
Koninklijke Philips Electronics N.V., Ordinary Shares (A)		50		1,571
				10,111
Norway - 2.7%
StatoilHydro ASA (A)		318		6,627
Portugal - 1.1%
Galp Energia, SGPS, S.A., Class B (A)		150		2,589
Russia - 1.1%
Sberbank (Savings Bank of the Russian Federation) (A)		1,000		2,805
Spain - 2.8%
Banco Santander Central Hispano, S.A. (A)		300		3,811
Industria de Diseno Textil, S.A. (A)		40		3,177
				6,988
Switzerland - 16.7%
ARYZTA AG (A)		66		2,906
BELIMO Holding AG, Registered Shares (A)		1		1,100
Compagnie Financiere Richemont S.A. (A)		70		3,370
Credit Suisse Group, Registered Shares (A)		100		4,274
Nestle S.A., Registered Shares (A)		120		6,393
Novartis AG, Registered Shares (A)		100		5,734
Roche Holdings AG, Genusscheine (A)		40		5,463
Swatch Group Ltd (The), Bearer Shares (A)		5		1,881
Tecan Group Ltd., Registered Shares (A)		35		2,374
TEMENOS Group AG (A)(B)		140		4,288
UBS AG (A)		200		3,395
				41,178
Turkey - 1.2%
Turkiye Garanti Bankasi Anonim Sirketi (A)		500		2,903
United Kingdom - 26.1%
Aurora Russia Limited (A)(B)		1,557		743
Autonomy Corporation plc (A)(B)		100		2,848
Barclays plc (A)		1,005		4,727
BG Group plc (A)		200		3,514
Britvic plc (A)		350		2,668
Bunzl plc (A)		200		2,385
Capita Group plc (The) (A)		200		2,469
Compass Group plc (A)		300		2,500
HSBC Holdings plc (A)		455		4,609
Imperial Tobacco Group plc (A)		200		5,961
MAXjet Airways, Inc. (A)(B)(D)		1,129		––	*
MAXjet Airways, Inc. (A)(B)		150		––	*
Prudential plc (A)		400		3,999
Reckitt Benckiser Group plc (A)		100		5,500
Rio Tinto plc (A)		75		4,384
Royal Bank of Scotland Group plc (The) (A)(B)		1,000		742
Serco Group plc (A)		300		2,898
Vodafone Group plc (A)		2,000		4,936
Xstrata plc (A)		500		9,568
				64,451
TOTAL COMMON STOCKS - 93.2%			$	229,430
(Cost: $216,051)
PREFERRED STOCKS - 3.3%
Germany
Fresenius AG (A)		15		1,210
Volkswagen AG (A)(C)		58		6,944
(Cost: $6,051)			$	8,154

SHORT-TERM SECURITIES	Principal
Master Note - 0.7%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (E)		$ 1,728		1,728
United States Government Agency Obligations - 1.6%
Overseas Private Investment Corporation,
0.200%, 11-15-10 (E)		4,000		4,000
TOTAL SHORT-TERM SECURITIES - 2.3%			$	5,728
(Cost: $5,728)
TOTAL INVESTMENT SECURITIES - 98.8%			$	243,312
(Cost: $227,830)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.2%				3,076
NET ASSETS - 100.0%			$	246,388

Notes to Schedule of Investments

*Not shown due to rounding.

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

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

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $8,557 or 3.5% of net assets.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to less than 0.05% of net assets.

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date the variable rate resets.

Market Sector Diversification
(as a % of net assets)
Financials	17.3%
Consumer Discretionary	13.6%
Information Technology	11.7%
Industrials	11.6%
Consumer Staples	10.5%
Energy	10.0%
Health Care	9.9%
Materials	9.9%
Telecommunication Services	2.0%
Other+	3.5%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Global Bond Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

 

Asset Allocation

Bonds	81.0%
Corporate Debt Securities	58.3%
United States Government and            Government Agency Obligations	20.3%
Other Government Securities	2.4%
Cash and Cash Equivalents and Equities	19.0%

Quality Weightings

Investment Grade	53.7%
AAA	20.6%
AA	0.3%
A	6.8%
BBB	26.0%
Non-Investment Grade	27.3%
BB	16.6%
B	9.1%
Non-rated	1.6%
Cash and Cash Equivalents and Equities	19.0%

Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's.

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

Country Weightings

North America	42.1%
United States	36.8%
Other North America	5.3%
South America	16.5%
Brazil	10.5%
Argentina	3.5%
Other South America	2.5%
Europe	12.8%
Russia	4.7%
Other Europe	8.1%
Pacific Basin	6.9%
Other	2.7%
Bahamas/Caribbean	0.3%
Cash and Cash Equivalents	18.7%

Lipper Rankings

Category: Lipper Global Income Funds	Rank	Percentile
1 Year	93/173	54

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

ILLUSTRATION OF FUND EXPENSES

Ivy Global Bond Fund

(UNAUDITED)

For the Six Months Ended September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,031.20	0.99%	$5.08
Class B	$1,000	$1,028.30	1.74%	$8.82
Class C	$1,000	$1,028.30	1.74%	$8.82
Class I	$1,000	$1,032.50	0.74%	$3.76
Class Y	$1,000	$1,031.20	0.99%	$5.08
Based on 5% Return(2)
Class A	$1,000	$1,020.11	0.99%	$5.05
Class B	$1,000	$1,016.35	1.74%	$8.77
Class C	$1,000	$1,016.35	1.74%	$8.77
Class I	$1,000	$1,021.36	0.74%	$3.74
Class Y	$1,000	$1,020.11	0.99%	$5.05

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Global Bond Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

 

COMMON STOCKS - 0.3%		Shares		Value
Oil & Gas Drilling
Seadrill Limited			22	$	638
(Cost: $417)
CORPORATE DEBT SECURITIES	Principal
Aerospace & Defense - 0.3%
Bombardier Inc.,
7.500%, 3-15-18 (A)			$ 600		645
Agricultural Products - 1.5%
CCL Finance Limited:
9.500%, 8-15-14			1,650		1,935
9.500%, 8-15-14 (A)			500		586
Corporacion Pesquera Inca S.A.C.,
9.000%, 2-10-17			400		414
Cosan S.A. Industria e Comercio,
8.250%, 11-15-19			175		177
					3,112
Air Freight & Logistics - 0.3%
FedEx Corporation,
7.375%, 1-15-14			500		589
Airlines - 0.3%
GOL Finance:
9.250%, 7-20-20			350		362
9.250%, 7-20-20			250		258
					620
Alternative Carriers - 0.4%
PCCW-HKT Capital No. 2 Limited,
6.000%, 7-15-13			750		813
Automotive Retail - 0.5%
TGI International Ltd.,
9.500%, 10-3-17			950		1,078
Brewers - 0.8%
AmBev International Finance Co. Ltd.,
9.500%, 7-24-17 (B)	BRL450				263
Anheuser-Busch InBev Worldwide Inc.,
3.000%, 10-15-12			$ 750		779
Miller Brewing Company,
5.500%, 8-15-13			500		550
					1,592
Broadcasting - 1.2%
Globo Comunicacoe e Participacoes S.A.,
6.250%, 12-20-49 (C)			1,050		1,073
Grupo Televisa, S.A.,
8.000%, 9-13-11			150		158
Pontis Ltd.,
6.250%, 12-20-49 (C)			1,000		1,023
					2,254
Coal & Consumable Fuels - 1.1%
Indo Integrated Energy B.V.,
8.500%, 6-1-12			1,500		1,589
PT Adaro Indonesia,
7.625%, 10-22-19			500		545
					2,134

Construction & Engineering - 0.5%
Odebrecht Finance Ltd.:
7.500%, 10-18-17		500		547
7.500%, 10-18-17 (A)		500		546
				1,093
Construction Materials - 0.3%
CEMEX Espana, S.A.,
9.250%, 5-12-20		185		173
Rearden G Holdings EINS GmbH,
7.875%, 3-30-20		365		392
				565
Consumer Finance - 0.9%
Banco BMG S.A.,
9.150%, 1-15-16		990		1,085
SLM Corporation,
5.400%, 10-25-11		750		758
				1,843
Department Stores - 0.5%
Parkson Retail Group Limited,
7.125%, 5-30-12		1,000		1,036
Distillers & Vintners - 1.3%
Central European Distribution Corporation,
9.125%, 12-1-16 (A)		2,000		2,150
Diageo Capital plc,
7.375%, 1-15-14		250		296
Diageo Finance B.V.,
5.500%, 4-1-13		250		276
				2,722
Diversified Banks - 3.1%
Banco Cruzeiro do Sul S.A.,
8.500%, 2-20-15 (D)		1,500		1,604
Banco Industrial e Comercial S.A.,
6.250%, 1-20-13 (A)		1,500		1,545
Banco Santander (Brasil) S.A.,
4.500%, 4-6-15 (A)		750		771
Banco Santander Chile, S.A.,
3.750%, 9-22-15 (D)		550		558
ICICI Bank Limited:
5.750%, 1-12-12 (A)		500		520
5.750%, 1-12-12		250		260
6.625%, 10-3-12		250		268
SB Capital S.A.,
5.930%, 11-14-11		500		520
VTB Capital S.A.,
6.609%, 10-31-12		250		264
				6,310
Diversified Chemicals - 0.6%
Dow Chemical Company (The),
7.600%, 5-15-14		1,000		1,168
Diversified Metals & Mining - 3.8%
Anglo American Capital plc,
9.375%, 4-8-14		500		616
Raspadskaya Securities Limited,
7.500%, 5-22-12		1,400		1,445
Rio Tinto Finance (USA) Limited,
8.950%, 5-1-14		750		926
Southern Peru Copper Corporation,
6.375%, 7-27-15 (A)		275		309
Suzano Trading Ltd,
5.875%, 1-23-21 (D)		1,400		1,400
Teck Cominco Limited,
7.000%, 9-15-12		500		539
Teck Resources Limited,
9.750%, 5-15-14		500		617
Vedanta Resources plc,
8.750%, 1-15-14		800		859
Xstrata Canada Corporation,
8.375%, 2-15-11		1,000		1,028
				7,739
Electric Utilities - 5.0%
Allegheny Energy, Inc.,
8.250%, 4-15-12 (A)		1,500		1,619
Compania de Transporte de Energia Electrica en Alta Tension       TRANSENER S.A.,
8.875%, 12-15-16		1,050		974
DPL Inc.,
6.875%, 9-1-11		500		527
Empresa Distribuidora y Comercializadora Norte S.A.,
10.500%, 10-9-17		505		529
ENEL Finance International S.A.,
3.875%, 10-7-14 (D)		500		524
FirstEnergy Corp.,
6.450%, 11-15-11		275		288
HQI Transelec Chile S.A.,
7.875%, 4-15-11		112		116
IPALCO Enterprises, Inc.,
8.625%, 11-14-11		1,142		1,203
Monongahela Power Company,
7.950%, 12-15-13 (D)		1,000		1,175
Oncor Electric Delivery Company,
6.375%, 5-1-12		1,000		1,089
PPL Energy Supply, LLC:
6.400%, 11-1-11		500		528
6.300%, 7-15-13		500		557
Southern Power Company,
6.250%, 7-15-12		500		545
UtiliCorp United Inc.,
7.950%, 2-1-11		500		511
				10,185
Environmental & Facilities Services - 0.1%
Allied Waste Industries, Inc.,
6.500%, 11-15-10		250		252
Food Distributors - 0.9%
Cargill, Inc.,
6.375%, 6-1-12 (A)		1,000		1,082
Olam International Limited,
7.500%, 8-12-20		750		781
				1,863
Forest Products - 1.0%
Celulosa Arauco y Constitucion S.A.,
7.750%, 9-13-11		500		526
Sino-Forest Corporation,
10.250%, 7-28-14 (A)		1,250		1,450
				1,976
Gas Utilities - 1.0%
National Fuel Gas Company,
6.700%, 11-21-11		1,000		1,060
Transportadora de Gas Del Sur S.A.,
7.875%, 5-14-17		997		975
				2,035
Health Care Facilities - 0.5%
HCA Inc.:
6.750%, 7-15-13		300		306
9.125%, 11-15-14		225		237
HealthSouth Corporation,
10.750%, 6-15-16		475		521
				1,064
Health Care Services - 0.2%
DASA Finance Corporation,
8.750%, 5-29-18		270		303
Homebuilding - 1.1%
Desarrolladora Homex, S.A. de C.V.,
7.500%, 9-28-15		1,100		1,133
URBI, Desarrollos Urbanos, S.A. de C.V.,
8.500%, 4-19-16		1,000		1,068
				2,201
Hotels, Resorts & Cruise Lines - 0.1%
Royal Caribbean Cruises Ltd.,
8.750%, 2-2-11		250		255
Household Products - 0.4%
Clorox Co.,
5.450%, 10-15-12		700		761
Independent Power Producers & Energy Traders - 2.4%
CESP - Companhia Energetica de Sao Paulo:
10.000%, 3-2-11		350		362
9.750%, 1-15-15 (B)	BRL1,000			728
Empresa Nacional de Electricidad S.A.,
8.350%, 8-1-13		$ 1,500		1,732
Star Energy Geothermal (Wayang Windu) Limited,
11.500%, 2-12-15 (A)		750		842
TransAlta Corporation,
5.750%, 12-15-13		1,000		1,110
				4,774
Industrial Conglomerates - 0.7%
Jaiprakash Associates Limited, Convertible,
0.000%, 9-12-12 (E)		1,000		1,270
Industrial Machinery - 0.1%
Ingersoll-Rand Global Holding Company Limited,
6.000%, 8-15-13		250		280
Integrated Oil & Gas - 2.1%
Cenovus Energy Inc.,
4.500%, 9-15-14		500		551
Empresa Nacional del Petroleo,
6.750%, 11-15-12 (D)		750		824
Gazprom International S.A.,
7.201%, 2-1-20		899		973
Gazstream S.A.,
5.625%, 7-22-13		407		421
Petro-Canada,
4.000%, 7-15-13		500		530
PF Export Receivables Master Trust,
6.436%, 6-1-15		240		256
PF Export Receivables Master Trust, Senior Trust Certificates,       Series 2003-A,
6.436%, 6-1-15 (D)		575		615
				4,170
Integrated Telecommunication Services - 0.1%
Telefonica de Argentina S.A.,
9.125%, 11-7-10		250		251
Marine Ports & Services - 0.5%
Novorossiysk Port Capital S.A.,
7.000%, 5-17-12		1,000		1,035
Multi-Utilities - 3.4%
Abu Dhabi National Energy Company PJSC:
5.620%, 10-25-12		1,000		1,052
6.600%, 8-1-13		1,000		1,084
Aquila, Inc.,
11.875%, 7-1-12 (F)		500		575
Black Hills Corporation,
6.500%, 5-15-13		1,500		1,633
KeySpan Corporation,
7.625%, 11-15-10		1,000		1,008
NiSource Finance Corp.,
7.875%, 11-15-10		1,250		1,259
Veolia Environment,
5.250%, 6-3-13		250		273
				6,884
Office Electronics - 0.1%
Xerox Corporation,
5.500%, 5-15-12		250		266
Oil & Gas Drilling - 1.5%
Noble Group Limited,
8.500%, 5-30-13		1,300		1,466
Seadrill Limited, Convertible,
3.625%, 11-8-12		400		444
Weatherford International, Inc.,
5.950%, 6-15-12		1,000		1,072
				2,982
Oil & Gas Equipment & Services - 2.1%
Petroleum Geo-Services ASA, Convertible,
2.700%, 12-3-12		2,800		2,636
SKDP 1 Ltd.,
12.000%, 5-19-17		1,000		1,080
Smith International, Inc.,
8.625%, 3-15-14		500		609
				4,325
Oil & Gas Exploration & Production - 1.8%
Anadarko Petroleum Corporation,
5.750%, 6-15-14		500		540
Pan American Energy LLC:
7.750%, 2-9-12		550		568
7.875%, 5-7-21 (A)		1,000		1,043
7.875%, 5-7-21		500		521
Ras Laffan Liquefied Natural Gas Co. Ltd.,
5.832%, 9-30-16		892		985
				3,657
Oil & Gas Refining & Marketing - 0.5%
Frontier Oil Corporation,
6.625%, 10-1-11		992		996
Oil & Gas Storage & Transportation - 4.3%
AGL Capital Corporation,
7.125%, 1-14-11		1,000		1,017
DCP Midstream, LLC,
9.700%, 12-1-13 (A)		500		613
Energy Transfer Partners, L.P.,
5.650%, 8-1-12		1,000		1,064
Maritimes & Northeast Pipeline, L.L.C.:
7.500%, 5-31-14		960		1,049
7.500%, 5-31-14 (A)		480		524
Midcontinent Express Pipeline LLC,
5.450%, 9-15-14		560		598
ONEOK Partners, L.P.,
5.900%, 4-1-12		500		533
Plains All American Pipeline, L.P., and PAA Finance Corp.,
7.750%, 10-15-12		1,000		1,114
Sunoco Logistics Partners Operations L.P.,
8.750%, 2-15-14		500		585
TransCapital Limited:
7.700%, 8-7-13		500		552
5.670%, 3-5-14 (D)		500		523
Transneft,
6.103%, 6-27-12		500		524
				8,696
Packaged Foods & Meats - 3.1%
BFF International Limited,
7.250%, 1-28-20 (A)		2,000		2,149
Bunge Limited Finance Corp.,
5.350%, 4-15-14		300		320
Cadbury Schweppes US Finance LLC,
5.125%, 10-1-13 (D)		1,000		1,094
COSAN FINANCE LIMITED,
7.000%, 2-1-17		128		139
JBS Finance II Ltd.,
8.250%, 1-29-18 (D)		1,550		1,598
JBS USA LLC and JBS USA Finance, Inc.,
11.625%, 5-1-14		450		520
Kraft Foods Inc.,
6.000%, 2-11-13		250		278
				6,098
Paper Products - 1.0%
Fibria Overseas Finance Ltd.,
7.500%, 5-4-20 (A)		1,196		1,270
International Paper Company,
7.400%, 6-15-14		400		463
Stora Enso Oyj,
7.375%, 5-15-11		275		286
				2,019
Pharmaceuticals - 0.7%
Novartis Capital Corporation,
4.125%, 2-10-14		500		546
Shire plc, Convertible,
2.750%, 5-9-14		900		905
				1,451
Precious Metals & Minerals - 0.5%
ALROSA Finance S.A.,
8.875%, 11-17-14		850		932
Publishing - 0.2%
Pearson Dollar Finance Two plc,
5.500%, 5-6-13		350		384
Railroads - 0.9%
Burlington Northern Santa Fe Corporation,
5.900%, 7-1-12		300		324
Kansas City Southern de Mexico, S.A. de C.V.,
7.625%, 12-1-13		1,000		1,034
Kansas City Southern Railway Company (The),
13.000%, 12-15-13		250		303
				1,661
Restaurants - 0.4%
Arcos Dorados B.V.,
7.500%, 10-1-19 (A)		750		816
Soft Drinks - 0.1%
PepsiAmericas, Inc.,
5.750%, 7-31-12		200		218
Steel - 1.2%
ArcelorMittal,
9.000%, 2-15-15		500		604
Evraz Group S.A.,
8.875%, 4-24-13		1,800		1,914
				2,518
Tobacco - 0.3%
B.A.T. International Finance plc,
8.125%, 11-15-13		500		589
Trading Companies & Distributors - 0.2%
CITIC Resources Holdings Limited,
6.750%, 5-15-14		400		417
Wireless Telecommunication Service - 2.4%
America Movil, S.A.B. de C.V.:
5.500%, 3-1-14		500		552
3.625%, 3-30-15		800		833
Indosat Palapa Company B.V.,
7.375%, 7-29-20 (D)		250		276
Mobile TeleSystems Finance S.A.:
8.375%, 10-14-10		200		200
8.000%, 1-28-12		600		632
Mobile TeleSystems OJSC,
8.700%, 6-12-18 (B)	RUB6,000			200
Open Joint Stock Company "Vimpel-Communications",
8.375%, 10-22-11		$ 250		264
Reliance Communications Limited, Convertible,
0.000%, 3-1-12 (E)		1,000		1,152
VIP Finance Ireland Limited,
8.375%, 4-30-13		550		593
				4,702
TOTAL CORPORATE DEBT SECURITIES - 58.3%			$	117,599
(Cost: $110,056)

OTHER GOVERNMENT SECURITIES
Argentina - 0.7%
City of Buenos Aires,
12.500%, 4-6-15		1,000		1,068
Compania Latinoamericana de Infraestructura & Servicios S.A.,
9.750%, 5-10-12		330		315
				1,383
Norway - 0.3%
Norway Government Bonds,
6.000%, 5-16-11 (B)	NOK3,200			556
Russia - 0.2%
Open Joint Stock Company "Russian Railroads",
8.500%, 7-6-11 (B)	RUB10,000			334
Supranational - 1.2%
CENTRAL AMERICAN BANK FOR ECONOMIC INTEGRATION:
4.875%, 1-15-12		$ 500		519
4.875%, 1-15-12 (D)		500		519
Corporacion Andina de Fomento:
7.375%, 1-18-11		500		509
6.875%, 3-15-12		1,000		1,079
				2,626
TOTAL OTHER GOVERNMENT SECURITIES - 2.4%			$	4,899
(Cost: $5,015)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 2.8%
Mortgage-Backed Obligations
Federal Home Loan Mortgage Corporation Adjustable Rate       Participation Certificates:
4.000%, 5-15-24		437		472
4.000%, 11-15-36		421		445
Federal Home Loan Mortgage Corporation Agency REMIC/CMO       (Interest Only), (G)
5.500%, 1-15-38		2,653		394
Federal National Mortgage Association Agency REMIC/CMO:
4.000%, 1-25-19		383		406
4.000%, 9-25-24		389		412
5.000%, 2-25-35		295		306
3.500%, 9-25-39		440		460
Federal National Mortgage Association Agency REMIC/CMO       (Interest Only): (G)
5.000%, 6-25-22		642		46
4.000%, 7-15-23		6,299		754
4.000%, 12-15-23		1,816		171
4.000%, 2-15-24		2,684		297
4.000%, 4-15-24		2,811		247
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
5.000%, 3-1-22		399		423
5.000%, 8-1-23		199		212
Government National Mortgage Association Agency REMIC/CMO       (Interest Only), (G)
4.500%, 11-20-36		2,289		314
Government National Mortgage Association Fixed Rate Pass-Through       Certificates,
4.500%, 6-15-23		280		298
(Cost: $6,002)			$	5,657

UNITED STATES GOVERNMENT OBLIGATIONS - 17.5%
Treasury Obligations
United States Treasury Notes:
1.125%, 12-15-11	10,000				10,095
0.625%, 7-31-12			1,850		1,858
1.375%, 2-15-13		15,000			15,304
0.750%, 8-15-13			1,850		1,857
1.750%, 7-31-15			1,980		2,028
2.375%, 7-31-17			1,980		2,046
3.500%, 5-15-20			1,980		2,149
(Cost: $34,789)				$	35,337
SHORT-TERM SECURITIES
Commercial Paper (H) - 11.9%
Avon Capital Corp. (Avon Products, Inc.),
0.240%, 10-6-10			3,500		3,500
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
0.310%, 10-22-10			3,500		3,499
IBM International Group Capital LLC (International Business Machines       Corporation),
0.000%, 10-1-10			1,592		1,592
Illinois Tool Works Inc.,
0.140%, 10-4-10			1,090		1,090
Procter & Gamble International Funding S.C.A. (Procter & Gamble       Company (The)),
0.190%, 11-1-10			4,000		4,000
Prudential Funding LLC,
0.000%, 10-1-10			3,000		3,000
Sonoco Products Co.,
0.000%, 10-1-10			3,462		3,462
Straight-A Funding, LLC (Federal Financing Bank),
0.210%, 11-5-10			3,900		3,899
					24,042

Master Note - 2.3%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (I)	4,819		4,819
Municipal Obligations - Taxable - 2.8%
Los Angeles, CA, Wastewater Sys Sub Rev Bonds, Var Rate Rfdg,       Ser 2008-G (Bank of America, N.A.),
0.260%, 10-1-10 (I)	3,000		3,000
Uinta Cnty, WY, Pollutn Ctl Rfdg Rev Bds (Chevron U.S.A. Inc. Proj),       Ser 1992 (Chevron Corporation),
0.270%, 10-1-10 (I)	2,550		2,550
			5,550
TOTAL SHORT-TERM SECURITIES - 17.0%		$	34,411
(Cost: $34,411)
TOTAL INVESTMENT SECURITIES - 98.3%		$	198,541
(Cost: $190,690)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.7%			3,357
NET ASSETS - 100.0%		$	201,898

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2010:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Buy	Chinese Yuan Renminbi	Goldman Sachs International	13,200	3-24-11		$	7	$	––
Buy	Chinese Yuan Renminbi	Citibank, N.A.	27,500	9-19-11			15		––
Buy	Chinese Yuan Renminbi	Citibank, N.A.	5,600	12-7-11			24		––
Buy	Chinese Yuan Renminbi	Citibank, N.A.	10,100	12-7-11			––		56
Sell	Euro	Deutsche Bank AG	4,100	1-6-12			––		257
Sell	Japanese Yen	Deutsche Bank AG	471,300	5-10-11			––		294
						$	46	$	607

(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $18,480 or 9.2% of net assets.

(B)Principal amounts are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real, NOK - Norwegian Krone and RUB - Russian Ruble).

(C)This security currently pays the stated rate but this rate will increase in the future.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $10,710 or 5.3% of net assets.

(E)Zero coupon bond.

(F)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010.

(G)Amount shown as principal represents notional amount for computation of interest.

(H)Rate shown is the yield to maturity at September 30, 2010.

(I)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

Country Diversification
(as a % of net assets)
United States	36.8%
Brazil	10.5%
Russia	4.7%
Argentina	3.5%
Canada	2.8%
Norway	2.5%
Mexico	2.5%
United Kingdom	2.4%
India	2.3%
Chile	2.0%
Indonesia	1.6%
China	1.4%
Hong Kong	1.2%
Luxembourg	1.2%
Supranational	1.2%
Poland	1.1%
United Arab Emirates	1.0%
Columbia	0.5%
Qatar	0.5%
Singapore	0.4%
Bermuda	0.3%
Italy	0.3%
Switzerland	0.3%
France	0.1%
Spain	0.1%
Finland	0.1%
Other+	18.7%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy High Income Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)  

Asset Allocation

Bonds	90.3%
Corporate Debt Securities	66.9%
Senior Loans	23.0%
Municipal Bonds - Taxable	0.4%
Cash and Cash Equivalents and Equities	9.7%

Lipper Rankings

Category: Lipper High Current Yield Funds	Rank	Percentile
1 Year	384/482	80
3 Year	50/416	12
5 Year	50/351	15
10 Year	59/234	26

Past performance is no guarantee of future results. Rankings are for Class C shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Quality Weightings

Investment Grade	3.3%
BBB	3.3%
Non-Investment Grade	87.0%
BB	12.5%
B	45.8%
CCC	20.4%
Non-rated	8.3%
Cash and Cash Equivalents and Equities	9.7%

Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's.

ILLUSTRATION OF FUND EXPENSES

Ivy High Income Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,063.20	1.12%	$5.78
Class B	$1,000	$1,059.00	1.92%	$9.88
Class C	$1,000	$1,059.60	1.80%	$9.27
Class E	$1,000	$1,061.80	1.36%	$7.01
Class I	$1,000	$1,064.90	0.82%	$4.23
Class Y	$1,000	$1,063.40	1.08%	$5.57
Based on 5% Return(2)
Class A	$1,000	$1,019.47	1.12%	$5.65
Class B	$1,000	$1,015.45	1.92%	$9.67
Class C	$1,000	$1,016.03	1.80%	$9.07
Class E	$1,000	$1,018.25	1.36%	$6.86
Class I	$1,000	$1,020.97	0.82%	$4.14
Class Y	$1,000	$1,019.66	1.08%	$5.45

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy High Income Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

 

COMMON STOCKS	Shares			Value
Building Products - 0.0%
Nortek, Inc. (A)		14		$	578
Casinos & Gaming - 1.0%
Sands China Ltd. (A)(B)(C)		7,883			14,224
TOTAL COMMON STOCKS - 1.0%				$	14,802
(Cost: $9,500)
PREFERRED STOCKS - 0.0%
Consumer Finance
GMAC INC. (D)		––	*	$	277
(Cost: $––)
WARRANTS
Agricultural Products - 0.1%
ASG Consolidated LLC		12			1,287
Apparel Retail - 0.2%
St. John Knits International, Incorporated (D)		48			2,766
TOTAL WARRANTS - 0.3%				$	4,053
(Cost: $702)
CORPORATE DEBT SECURITIES	Principal
Aerospace & Defense - 3.8%
Alliant Techsystems Inc.,
6.875%, 9-15-20		$ 1,850			1,880
BE Aerospace Inc,
6.875%, 10-1-20		2,795			2,851
Sequa Corporation:
11.750%, 12-1-15 (C)		27,005			28,489
13.500%, 12-1-15 (C)		21,450			22,952
					56,172
Agricultural Products - 1.6%
American Seafoods Group LLC,
10.750%, 5-15-16 (C)		11,655			11,887
ASG Consolidated LLC,
15.000%, 5-15-17 (C)		11,700			10,589
					22,476
Apparel, Accessories & Luxury Goods - 0.2%
Norcraft Companies, L.P. and Norcraft Finance Corp.,
10.500%, 12-15-15		2,405			2,513
Auto Parts & Equipment - 1.3%
Icahn Enterprises L.P.,
7.750%, 1-15-16		10,650			10,703
J.B. Poindexter & Co., Inc.,
8.750%, 3-15-14		7,619			7,448
UCI Holdco, Inc.,
8.292%, 12-15-13 (E)(F)		1,477			1,427
					19,578
Automotive Retail - 0.8%
Sonic Automotive, Inc.:
8.625%, 8-15-13		2,394			2,436
9.000%, 3-15-18		9,955			10,328
					12,764

Broadcasting - 0.9%
SIRIUS XM Radio Inc.,
8.750%, 4-1-15 (C)			12,590		13,377
Building Products - 3.7%
Goodman Global Group, Inc.,
0.000%, 12-15-14 (G)			35,187		22,519
Hillman Group, Inc. (The),
10.875%, 6-1-18 (C)			9,520		10,044
Nortek, Inc.,
11.000%, 12-1-13			14,464		15,368
Ply Gem Industries, Inc.,
13.125%, 7-15-14			7,800		7,946
					55,877
Casinos & Gaming - 3.1%
Inn of the Mountain Gods Resort and Casino,
12.000%, 11-15-10 (H)			1,500		615
Marina District Finance Company, Inc.:
9.500%, 10-15-15 (C)			900		873
9.875%, 8-15-18 (C)			900		869
MCE Finance Limited,
10.250%, 5-15-18 (C)			6,825		7,592
MGM MIRAGE:
13.000%, 11-15-13			4,740		5,570
10.375%, 5-15-14			2,725		3,032
11.125%, 11-15-17			6,150		7,003
9.000%, 3-15-20 (C)			2,170		2,284
Pinnacle Entertainment, Inc.,
8.625%, 8-1-17			2,200		2,335
Scientific Games Corporation:
8.125%, 9-15-18 (C)			975		995
9.250%, 6-15-19			10,725		11,394
Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp.,
7.750%, 8-15-20 (C)			4,500		4,748
					47,310
Commodity Chemicals - 0.1%
Celanese US Holdings, LLC,
6.625%, 10-15-18 (C)			1,170		1,196
Computer & Electronics Retail - 1.5%
CDW Corporation,
11.000%, 10-12-15 (C)			23,000		23,000
Construction & Farm Machinery & Heavy Trucks - 0.3%
Case New Holland, Inc.,
7.875%, 12-1-17 (C)			3,960		4,302
Construction Materials - 2.6%
CEMEX Finance LLC,
9.500%, 12-14-16 (C)			5,450		5,484
Headwaters Incorporated,
11.375%, 11-1-14 (C)			12,935		13,775
Headwaters Incorporated, Convertible:
2.500%, 2-1-14			7,250		5,655
14.750%, 2-1-14 (D)			8,100		8,708
16.000%, 6-1-16 (C)			5,687		6,568
					40,190
Consumer Finance - 2.1%
Bankrate Inc.,
11.750%, 7-15-15 (C)			15,125		16,184
Credit Acceptance Corporation,
9.125%, 2-1-17 (C)			5,360		5,628
TMX Finance LLC and TitleMax Finance Corp,
13.250%, 7-15-15 (C)			9,440		10,301
					32,113
Distillers & Vintners - 0.9%
Central European Distribution Corporation,
9.125%, 12-1-16 (C)			11,400		12,255
Central European Distribution Corporation, Convertible,
3.000%, 3-15-13			1,950		1,765
					14,020
Diversified Banks - 0.1%
FCE Bank plc,
7.875%, 2-15-11 (I)	GBP1,000				1,589
Diversified Chemicals - 0.2%
Vertellus Specialties Inc.,
9.375%, 10-1-15 (C)			$ 2,365		2,454
Diversified Metals & Mining - 0.3%
Compass Minerals International, Inc.,
8.000%, 6-1-19			3,850		4,067
Diversified Support Services - 0.7%
KAR Holdings, Inc.,
8.750%, 5-1-14			6,955		7,242
SITEL, LLC and SITEL Finance Corp.,
11.500%, 4-1-18 (C)			4,320		3,456
					10,698
Education Services - 6.4%
Education Management LLC and Education Management Finance Corp.:
8.750%, 6-1-14			7,060		7,025
10.250%, 6-1-16			1,985		2,045
Laureate Education, Inc.:
10.000%, 8-15-15 (C)			35,398		36,105
11.000%, 8-15-15 (C)(E)			14,293		14,606
11.750%, 8-15-17 (C)			36,075		38,058
					97,839
Electrical Components & Equipment - 2.3%
Goodman Global Group, Inc.,
13.500%, 2-15-16			8,775		9,653
NXP B.V. and NXP Funding LLC,
9.500%, 10-15-15			24,752		25,370
					35,023
Electronic Manufacturing Services - 1.1%
Jabil Circuit, Inc.:
7.750%, 7-15-16			6,860		7,520
8.250%, 3-15-18			4,070		4,548
KEMET Corporation,
10.500%, 5-1-18 (C)			4,400		4,604
					16,672
Environmental & Facilities Services - 0.1%
Liberty Tire Recycling Holdco, LLC and Liberty Tire Recycling Finance, Inc.,
11.000%, 10-1-16 (C)			944		963
Food Retail - 0.3%
Beverages & More, Inc.,
9.625%, 10-1-14 (C)		4,875			4,924
Forest Products - 0.3%
Ainsworth Lumber Co. Ltd.,
11.000%, 7-29-15 (C)(E)			5,019		4,112
General Merchandise Stores - 0.7%
Dollar General Corporation,
11.875%, 7-15-17			8,692		10,170
Health Care Equipment - 0.6%
Biomet, Inc.,
11.625%, 10-15-17			5,450		6,070
ReAble Therapeutics Finance LLC and ReAble Therapeutics Finance       Corporation,
10.875%, 11-15-14			2,770		3,012
					9,082
Health Care Facilities - 1.2%
HCA Inc.:
9.875%, 2-15-17			500		553
8.500%, 4-15-19			4,750		5,296
HealthSouth Corporation,
8.125%, 2-15-20			8,200		8,528
Radiation Therapy Services, Inc.,
9.875%, 4-15-17 (C)			4,260		4,207
					18,584
Health Care Services - 1.5%
BioScrip, Inc.,
10.250%, 10-1-15			2,580		2,638
Gentiva Health Services, Inc.,
11.500%, 9-1-18 (C)			9,160		9,777
OnCure Holdings, Inc.,
11.750%, 5-15-17 (C)			5,290		4,867
US Oncology, Inc.,
10.750%, 8-15-14			5,075		5,278
					22,560
Home Furnishings - 0.3%
Simmons Bedding Company,
11.250%, 7-15-15 (C)			4,200		4,510
Hotels, Resorts & Cruise Lines - 0.8%
Starwood Hotels & Resorts Worldwide, Inc.:
6.750%, 5-15-18			8,000		8,600
7.150%, 12-1-19			3,100		3,364
					11,964
Human Resource & Employment Services - 0.4%
SSI Investments II Ltd and SSI,
11.125%, 6-1-18 (C)			5,375		5,899
Independent Power Producers & Energy Traders - 1.5%
AES Corporation (The),
9.750%, 4-15-16			6,000		6,900
Calpine Construction Finance Company, L.P.,
8.000%, 6-1-16 (C)			9,600		10,272
Calpine Corporation,
7.875%, 7-31-20 (C)			4,875		5,009
					22,181
Industrial Conglomerates - 0.9%
Pinafore, LLC and Pinafore, Inc.,
9.000%, 10-1-18 (C)			12,995		13,645
Industrial Machinery - 0.7%
Altra Holdings, Inc.,
8.125%, 12-1-16			4,750		4,940
CPM Holdings, Inc.,
10.625%, 9-1-14 (C)			5,350		5,765
					10,705
Integrated Telecommunication Services - 0.3%
West Corporation,
9.500%, 10-15-14			4,185		4,379
Internet Software & Services - 1.2%
Equinix, Inc.,
8.125%, 3-1-18			3,225		3,443
Terremark Worldwide, Inc.,
12.000%, 6-15-17			13,237		15,124
					18,567
Investment Banking & Brokerage - 1.9%
E*TRADE Financial Corporation:
7.375%, 9-15-13			2,400		2,346
7.875%, 12-1-15			3,850		3,763
12.500%, 11-30-17			19,634		22,383
					28,492
IT Consulting & Other Services - 1.0%
Broadview Networks Holdings, Inc.,
11.375%, 9-1-12			3,480		3,410
Telvent GIT, S.A., Convertible,
5.500%, 4-15-15 (C)			11,000		11,055
					14,465
Leisure Products - 0.3%
Yonkers Racing Corporation,
11.375%, 7-15-16 (C)			4,274		4,637
Life Sciences Tools & Services - 0.2%
PharmaNet Development Group Inc.,
10.875%, 4-15-17 (C)			2,400		2,478
Managed Health Care - 0.0%
MultiPlan Inc.,
9.875%, 9-1-18 (C)			460		481
Metal & Glass Containers - 0.2%
Graham Packaging Company, L.P. and GPC Capital Corp. I,
9.875%, 10-15-14			2,500		2,594
Motorcycle Manufacturers - 0.6%
Harley-Davidson Funding Corp.,
6.800%, 6-15-18 (C)			8,625		9,377
Movies & Entertainment - 0.8%
MU Finance plc,
8.375%, 2-1-17 (C)			3,900		3,803
Regal Cinemas Corporation,
9.375%, 2-1-12			2,000		2,000
Wallace Theater Holdings Inc.,
12.500%, 6-15-13 (C)(F)			5,590		5,590
					11,393
Office Electronics - 0.5%
Xerox Capital Trust I,
8.000%, 2-1-27			8,010		8,149
Office Services & Supplies - 0.5%
Interface, Inc.:
11.375%, 11-1-13			5,250		5,959
9.500%, 2-1-14			1,850		1,912
					7,871
Oil & Gas Drilling - 2.9%
RDS Ultra-Deepwater Ltd,
11.875%, 3-15-17 (C)			8,385		8,762
Vantage Drilling Company,
11.500%, 8-1-15 (C)			32,100		33,705
					42,467
Oil & Gas Equipment & Services - 0.4%
Global Geophysical Services, Inc.,
10.500%, 5-1-17 (C)			5,470		5,566
Oil & Gas Exploration & Production - 0.4%
Anadarko Petroleum Corporation:
5.950%, 9-15-16			3,900		4,260
6.375%, 9-15-17			2,280		2,513
					6,773
Oil & Gas Storage & Transportation - 0.3%
Regency Energy Partners LP,
9.375%, 6-1-16 (C)			4,430		4,884
Other Diversified Financial Services - 0.5%
JPMorgan Chase & Co.,
7.900%, 4-29-49 (F)			7,250		7,769
Packaged Foods & Meats - 0.5%
FAGE Dairy Industry S.A. and FAGE USA Dairy Industry, Inc.,
9.875%, 2-1-20 (C)			2,925		2,706
Pinnacle Foods Finance LLC,
9.250%, 4-1-15 (C)			4,750		4,940
					7,646
Paper Products - 0.3%
Buckeye Technologies Inc.,
8.500%, 10-1-13			3,765		3,812
Pharmaceuticals - 0.7%
Catalent Pharma Solutions, Inc.,
9.750%, 4-15-17 (I)	EUR1,225				1,536
Quintiles Transnational Holdings Inc,
9.500%, 12-30-14 (C)			$ 8,305		8,534
					10,070
Publishing - 0.1%
Nielsen Finance LLC and Nielsen Finance Co.,
7.750%, 10-15-18			1,900		1,886
Railroads - 0.4%
Kansas City Southern de Mexico, S.A. de C.V.:
12.500%, 4-1-16			2,915		3,490
8.000%, 2-1-18 (C)			2,100		2,258
					5,748
Regional Banks - 4.6%
CapitalSource Inc.,
12.750%, 7-15-14 (C)			17,300		20,111
CIT Group, Inc.:
7.000%, 5-1-13			20,850		20,955
7.000%, 5-1-16			8,600		8,471
7.000%, 5-1-17			9,625		9,420
Marshall & Ilsley Corporation,
5.000%, 1-17-17			10,450		9,962
					68,919
Restaurants - 2.4%
CKE Restaurants, Inc.,
11.375%, 7-15-18 (C)			32,900		33,723
NPC International, Inc.,
9.500%, 5-1-14			1,970		2,009
					35,732
Security & Alarm Services - 0.5%
DynCorp International Inc.,
10.375%, 7-1-17 (C)			8,075		8,035
Specialty Chemicals - 0.1%
Hexion Finance Escrow LLC and Hexion Escrow Corporation,
8.875%, 2-1-18			1,950		1,911
Steel - 0.3%
Severstal Columbus LLC,
10.250%, 2-15-18 (C)			3,870		4,063
WireCo WorldGroup Inc.,
9.500%, 5-15-17 (C)			1,950		2,004
					6,067
Wireless Telecommunication Service - 1.7%
Digicel Group Limited:
8.250%, 9-1-17 (C)			4,800		5,040
10.500%, 4-15-18 (C)			4,988		5,474
Wind Acquisition Finance S.A.,
11.750%, 7-15-17 (C)			14,200		15,913
					26,427
TOTAL CORPORATE DEBT SECURITIES - 66.9%				$	1,009,124
(Cost: $940,703)
MUNICIPAL BONDS - TAXABLE - 0.4%
New York
NYC Indl Dev Agy,
11.000%, 3-1-29 (D)			5,000	$	6,467
(Cost: $5,000)
SENIOR LOANS
Agricultural Products - 1.0%
WM. Bolthouse Farms, Inc.,
9.500%, 7-25-16 (F)			16,000		16,015
Alternative Carriers - 0.1%
U.S. Telepacific Corp.,
9.250%, 7-25-15 (F)			2,189		2,192

Apparel Retail - 1.1%
St. John Knits International, Inc.,
13.000%, 3-2-15 (F)		17,000		17,043
Broadcasting - 2.4%
High Plains Broadcasting Operating Company, LLC,
9.000%, 9-14-16 (F)		7,452		7,402
Newport Television LLC,
9.000%, 9-14-16 (F)		28,506		28,316
				35,718
Communications Equipment - 1.0%
Mitel Networks Corporation,
7.352%, 8-15-15 (F)		17,259		15,706
Diversified Capital Markets - 0.5%
Blackstone UTP Capital LLC,
7.750%, 10-29-14 (F)		6,948		7,000
Diversified Support Services - 3.2%
Advantage Sales and Marketing Inc.,
8.500%, 4-5-17 (F)		28,833		28,726
N.E.W. Holdings I, LLC:
9.500%, 3-5-17 (F)		6,805		6,727
9.500%, 3-5-17 (F)		6,805		6,727
9.500%, 3-5-17 (F)		6,805		6,727
				48,907
Education Services - 0.6%
Laureate Education, Inc.,
7.000%, 8-1-14 (F)		9,906		9,765
Electric Utilities - 3.8%
Texas Competitive Electric Holdings Company, LLC:
3.758%, 10-10-14 (F)		64,785		49,884
3.758%, 10-10-14 (F)		8,273		6,425
3.789%, 10-10-14 (F)		164		126
3.789%, 10-10-14 (F)		21		17
3.789%, 10-10-14 (F)		5		4
4.066%, 10-10-14 (F)		1,174		912
				57,368
Environmental & Facilities Services - 0.4%
K2 Pure Solutions Nocal, L.P.,
10.000%, 7-20-15 (F)		5,875		5,640
Health Care Services - 0.9%
Gentiva Health Services, Inc.,
6.750%, 5-23-16 (F)		13,740		13,688
Household Products - 0.5%
Reynolds Group Holdings, Inc.,
2.375%, 8-16-16 (F)		7,215		7,243
Hypermarkets & Super Centers - 0.6%
Roundy's Supermarkets, Inc.,
10.000%, 4-5-16 (F)		8,300		8,427
Independent Power Producers & Energy Traders - 0.2%
Energy Future Competitive Holdings Company and Texas Competitive       Electric Holdings Company, LLC:
3.758%, 10-10-14 (F)		821		637
3.758%, 10-10-14 (F)		184		143
3.758%, 10-10-14 (F)		1,952		1,511
3.789%, 10-10-14 (F)		6		4
				2,295
Industrial Conglomerates - 0.2%
Tomkins plc,
6.750%, 9-7-16 (F)		2,405		2,425
Internet Software & Services - 2.3%
SAVVIS Communications Corporation:
6.750%, 7-9-16 (F)		17,341		17,394
6.750%, 7-9-16 (F)		159		160
Springboard Finance, L.L.C.,
7.000%, 2-2-15 (F)		17,063		17,115
				34,669
Leisure Products - 2.8%
Guitar Center, Inc.,
3.760%, 10-9-14 (F)		10,000		8,955
Provo Craft & Novelty, Inc.,
8.000%, 12-31-49 (F)		12,500		12,219
Red Football Joint Venture Ltd.,
14.250%, 8-16-17 (F)(I)	GBP3,019			4,647
Visant Corporation,
7.000%, 9-22-16 (F)		$ 15,000		15,062
				40,883
Oil & Gas Storage & Transportation - 0.5%
Blueknight Energy Partners, L.P.:
9.500%, 6-30-11 (F)		7,404		7,429
9.500%, 6-30-11 (F)		417		410
				7,839
Regional Banks - 0.9%
CIT Group, Inc.,
6.250%, 8-11-15 (F)		13,380		13,467
TOTAL SENIOR LOANS - 23.0%			$	346,290
(Cost: $341,879)

SHORT-TERM SECURITIES
Commercial Paper (J) - 7.3%
Bank of Nova Scotia,
0.190%, 11-1-10	4,455		4,454
Clorox Co.:
0.350%, 10-18-10	6,000		5,999
0.360%, 10-22-10	10,000		9,998
0.350%, 10-28-10	2,748		2,747
0.340%, 11-5-10	8,949		8,946
Corporacion Andina de Fomento,
0.480%, 10-15-10	1,300		1,300
CVS Caremark Corporation:
0.270%, 10-4-10	9,000		9,000
0.320%, 10-13-10	11,000		10,998
General Mills, Inc.,
0.290%, 10-18-10	7,500		7,499
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.):
0.280%, 10-12-10	10,000		9,999
0.310%, 10-22-10	19,000		18,996
Hewlett-Packard Company,
0.170%, 10-6-10	10,000		10,000
Kellogg Co.,
0.240%, 10-5-10	7,000		7,000
McCormick & Co. Inc.,
0.000%, 10-1-10	2,000		2,000
			108,936
Master Note - 0.0%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (K)	693		693
Municipal Obligations - Taxable - 1.1%
MI Strategic Fund, Var Rate Demand Ltd Oblig Rev Bonds (Air Products       and Chemicals, Inc. Proj), Ser 2007 (Bank of New York (The)),
0.500%, 10-1-10 (K)	16,490		16,490
TOTAL SHORT-TERM SECURITIES - 8.4%		$	126,119
(Cost: $126,119)
TOTAL INVESTMENT SECURITIES - 100.0%		$	1,507,132
(Cost: $1,423,903)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.0%			29
NET ASSETS - 100.0%		$	1,507,161

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2010:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Sell	British Pound	Citibank, N.A.	1,038	2-15-11		$	229		$	––
Sell	British Pound	Citibank, N.A.	3,500	4-7-11			––			169
Sell	Euro	Citibank, N.A.	60	10-15-10			8			––
Sell	Euro	Citibank, N.A.	60	4-15-11			8			––
Sell	Euro	Citibank, N.A.	60	10-14-11			8			––
Sell	Euro	Citibank, N.A.	60	4-13-12			8			––
Sell	Euro	Citibank, N.A.	60	10-15-12			8			––
Sell	Euro	Citibank, N.A.	60	4-15-13			8			––
Sell	Euro	Citibank, N.A.	60	10-15-13			9			––
Sell	Euro	Citibank, N.A.	60	4-15-14			9			––
Sell	Euro	Citibank, N.A.	60	10-15-14			9			––
Sell	Euro	Citibank, N.A.	59	4-15-15			9			––
Sell	Euro	Citibank, N.A.	59	10-15-15			9			––
Sell	Euro	Citibank, N.A.	60	4-15-16			9			––
Sell	Euro	Citibank, N.A.	60	10-14-16			9			––
Sell	Euro	Citibank, N.A.	1,284	4-13-17			182			––
						$	522		$	169

*Not shown due to rounding.

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

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

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $603,988 or 40.1% of net assets.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $18,218 or 1.2% of net assets.

(E)Payment-in-kind bonds.

(F)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010.

(G)Zero coupon bond.

(H)Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy.

(I)Principal amounts are denominated in the indicated foreign currency, where applicable (EUR - Euro and GBP - British Pound).

(J)Rate shown is the yield to maturity at September 30, 2010.

(K)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy International Balanced Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	66.1%
Financials	12.9%
Consumer Discretionary	9.9%
Energy	9.6%
Telecommunication Services	9.1%
Consumer Staples	6.2%
Information Technology	6.2%
Materials	4.7%
Industrials	4.7%
Health Care	2.8%
Bonds	31.4%
Other Government Securities	17.4%
Corporate Debt Securities	14.0%
Cash and Cash Equivalents	2.5%

Lipper Rankings

Category: Lipper Mixed-Asset Target       Allocation Growth Funds	Rank	Percentile
1 Year	292/561	52
3 Year	149/498	30
5 Year	21/407	6
10 Year	3/202	2

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

Europe	48.9%
France	15.4%
United Kingdom	11.8%
Switzerland	3.9%
Netherlands	3.6%
Other Europe	14.2%
Pacific Basin	38.3%
Australia	14.8%
Japan	6.3%
Hong Kong	3.8%
Taiwan	3.5%
Other Pacific Basin	9.9%
North America	4.5%
South America	4.4%
Other	1.4%
Cash and Cash Equivalents	2.5%

Top 10 Equity Holdings

Company	Country	Sector	Industry
TOTAL S.A.	France	Energy	Integrated Oil & Gas
Unilever plc	United Kingdom	Consumer Staples	Packaged Foods &      Meats
Vodafone Group plc	United Kingdom	Telecommunication       Services	Wireless Telecommunication       Service
Royal Dutch Shell plc,       Class A	United Kingdom	Energy	Integrated Oil & Gas
Credit Suisse Group,       Registered Shares	Switzerland	Financials	Diversified Capital Markets
Foster's Group Limited	Australia	Consumer Staples	Brewers
Cheung Kong       (Holdings) Limited	Hong Kong	Financials	Real Estate Development
Vivendi Universal	France	Consumer      Discretionary	Movies & Entertainment
Sanofi-Aventis	France	Health Care	Pharmaceuticals
Telstra Corporation       Limited	Australia	Telecommunication       Services	Integrated Telecommunication       Services

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy International Balanced Fund

(UNAUDITED)

For the Six Months Ended September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,058.90	1.47%	$	7.62
Class B	$1,000	$1,054.50	2.46%	$	12.64
Class C	$1,000	$1,055.70	2.15%	$	11.10
Class E	$1,000	$1,059.60	1.33%	$	6.90
Class I	$1,000	$1,061.50	1.00%	$	5.15
Class Y	$1,000	$1,060.20	1.26%	$	6.49
Based on 5% Return(2)
Class A	$1,000	$1,017.68	1.47%	$	7.47
Class B	$1,000	$1,012.75	2.46%	$	12.38
Class C	$1,000	$1,014.29	2.15%	$	10.88
Class E	$1,000	$1,018.41	1.33%	$	6.76
Class I	$1,000	$1,020.05	1.00%	$	5.05
Class Y	$1,000	$1,018.74	1.26%	$	6.36

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy International Balanced Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS		Shares		Value
Australia - 10.9%
Australia and New Zealand Banking Group Limited (A)			123	$	2,823
Coal & Allied Industries Limited (A)			25		2,526
Computershare Limited (A)			252		2,379
Crown Limited (A)			343		2,780
David Jones Limited (A)			554		2,666
Foster's Group Limited (A)			737		4,368
John Fairfax Holdings Limited (A)			1,534		2,172
Myer Holdings Limited (A)			776		2,821
Orica Limited (A)			108		2,682
Telstra Corporation Limited (A)			1,606		4,066
					29,283
Brazil - 0.8%
Vivo Participacoes S.A., ADR			78		2,118
China - 2.4%
China Mobile Limited (A)(B)			50		507
China Mobile Limited (A)			320		3,277
Industrial and Commercial Bank of China Limited, H Shares (A)(C)			3,712		2,765
					6,549
France - 9.2%
ALSTOM (A)			42		2,139
AXA S.A. (A)			115		2,005
Sanofi-Aventis (A)			61		4,088
Schneider Electric S.A. (A)			19		2,380
Societe Generale (A)			40		2,291
TOTAL S.A. (A)			142		7,294
Vivendi Universal (A)			158		4,320
					24,517
Germany - 2.0%
Bayer Aktiengesellschaft (A)			46		3,216
Deutsche Boerse AG (A)			31		2,050
					5,266
Hong Kong - 3.8%
Cheung Kong (Holdings) Limited (A)			288		4,365
New World Development Company Limited (A)			1,508		3,040
Yue Yuen Industrial (Holdings) Limited (A)			769		2,848
					10,253
Israel - 1.4%
Bezeq - Israel Telecommunication Corp., Ltd. (The) (A)			1,479		3,686
Italy - 1.7%
Banca Intesa S.p.A. (A)			605		1,966
Mediaset S.p.A. (A)			379		2,689
					4,655
Japan - 6.3%
LAWSON, INC. (A)			48		2,204
Mitsubishi Corporation (A)			99		2,359
Nissin Kogyo Co., Ltd. (A)			154		2,469
NTT DoCoMo, Inc. (A)			2		3,425
Shin-Etsu Chemical Co., Ltd. (A)			38		1,831
Sumitomo Corporation (A)			191		2,467
Trend Micro Incorporated (A)			74		2,196
					16,951
Netherlands - 1.2%
Fugro N.V. (A)			47		3,095
Norway - 2.2%
Seadrill Limited (A)			126		3,638
StatoilHydro ASA (A)			110		2,293
					5,931
Russia - 1.0%
Mobile TeleSystems OJSC, ADR			121		2,565
Singapore - 1.1%
CapitaCommercial Trust (A)			2,506		2,820
Spain - 1.8%
Indra Sistemas S.A. (A)			140		2,672
Tecnicas Reunidas, S.A. (A)			39		2,101
					4,773
Switzerland - 3.9%
Credit Suisse Group, Registered Shares (A)			104		4,447
Roche Holdings AG, Genusscheine (A)			25		3,414
Syngenta AG (A)			10		2,480
					10,341
Taiwan - 3.5%
High Tech Computer Corp. (A)			133		3,026
Siliconware Precision Industries Co., Ltd. (A)			2,965		3,113
Taiwan Semiconductor Manufacturing Company Ltd. (A)			1,681		3,335
					9,474
United Kingdom - 10.9%
BAE Systems plc (A)			600		3,224
Barclays plc (A)			593		2,789
Home Retail Group plc (A)			594		1,921
Prudential plc (A)			334		3,339
Royal Dutch Shell plc, Class A (A)			148		4,467
tesco plc (A)			372		2,478
Unilever plc (A)			163		4,703
Vodafone Group plc (A)			1,816		4,482
WPP Group plc (A)			181		1,998
					29,401
United States - 2.0%
Coca-Cola Company (The)			52		3,045
Southern Copper Corporation			68		2,403
					5,448
TOTAL COMMON STOCKS - 66.1%				$	177,126
(Cost: $166,714)
CORPORATE DEBT SECURITIES	Principal
Argentina - 1.2%
Arcos Dorados B.V.,
7.500%, 10-1-19 (C)		$	3,000		3,263
Australia - 2.2%
Coles Myer Finance Limited,
6.000%, 7-25-12 (D)	AUD1,250				1,199
Fairfax Media Group Finance Pty Limited,
5.250%, 6-15-12 (D)	EUR2,000				2,767
Vodafone Group plc,
6.750%, 1-10-13 (D)	AUD2,000				1,945
					5,911

Brazil - 2.4%
AmBev International Finance Co. Ltd.,
9.500%, 7-24-17 (D)	BRL7,500				4,387
Pontis Ltd.,
6.250%, 12-20-49		$2,000			2,045
					6,432
Canada - 1.4%
Teck Resources Limited,
9.750%, 5-15-14			3,000		3,700
Denmark - 1.3%
Carlsberg Finans A/S,
7.000%, 2-26-13 (D)	GBP2,000				3,456
France - 2.3%
Vivendi,
7.750%, 1-23-14 (D)	EUR2,000				3,127
WPP Finance S.A.,
5.250%, 1-30-15 (D)			2,000		2,942
					6,069
Luxembourg - 1.1%
Wind Acquisition Finance S.A.:
11.000%, 12-1-15 (D)			1,500		2,153
11.750%, 7-15-17 (C)		$ 750			840
					2,993
Netherlands - 1.2%
Heineken N.V.,
7.125%, 4-7-14 (D)	EUR2,000				3,098
United Kingdom - 0.9%
Rio Tinto Finance (USA) Limited,
8.950%, 5-1-14		$2,000			2,470
TOTAL CORPORATE DEBT SECURITIES - 14.0%				$	37,392
(Cost: $34,134)
OTHER GOVERNMENT SECURITIES
Australia - 1.7%
New South Wales Treasury Corporation,
6.000%, 5-1-12 (D)	AUD4,600				4,512
France - 3.9%
French Treasury Bond (OAT),
4.250%, 10-25-17 (D)	EUR6,920				10,649
Malaysia - 2.6%
Malaysian Government Bonds:
3.756%, 4-28-11 (D)	MYR8,550				2,783
3.461%, 7-31-13 (D)			12,435		4,060
					6,843

Mexico - 1.1%
United Mexican States Government Bonds,
8.000%, 12-19-13 (D)	MXN35,000			2,986
Netherlands - 1.2%
Netherlands Government Bonds,
4.500%, 7-15-17 (D)	EUR2,000			3,137
New Zealand - 1.1%
New Zealand Government Bonds,
6.000%, 11-15-11 (D)	NZD3,910			2,948
Poland - 0.4%
Poland Government Bonds,
6.250%, 10-24-15 (D)	PLN3,250			1,171
South Korea - 2.7%
Republic of Korea (The),
7.125%, 4-16-19		$1,190		1,516
South Korea Treasury Bonds,
5.250%, 9-10-12 (D)	KRW6,350,000			5,778
				7,294
Sweden - 2.7%
Kingdom of Sweden (The),
5.250%, 3-15-11 (D)	SEK47,170			7,130
TOTAL OTHER GOVERNMENT SECURITIES - 17.4%			$	46,670
(Cost: $43,853)
SHORT-TERM SECURITIES - 1.4%
Master Note
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (E)		$3,782	$	3,782
(Cost: $3,782)
TOTAL INVESTMENT SECURITIES - 98.9%			$	264,970
(Cost: $248,483)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.1%				2,893
NET ASSETS - 100.0%			$	267,863

Notes to Schedule of Investments

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

(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $507 or 0.2% of net assets.

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $6,868 or 2.6% of net assets.

(D)Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, BRL - Brazilian Real, EUR - Euro, GBP - British Pound, KRW - South Korean Won, MXN - Mexican Peso, MYR - Malaysian Ringgit, NZD - New Zealand Dollar, PLN - Polish Zloty and SEK - Swedish Krona).

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date the variable rate resets.

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

Market Sector Diversification
(as a % of net assets)
Other Government Securities	17.4%
Consumer Discretionary	15.3%
Financials	12.9%
Telecommunication Services	10.9%
Consumer Staples	10.7%
Energy	9.6%
Materials	7.0%
Information Technology	6.2%
Industrials	4.7%
Health Care	2.8%
Other+	2.5%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy International Core Equity Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	98.6%
Financials	18.5%
Consumer Discretionary	14.1%
Industrials	12.3%
Energy	11.4%
Information Technology	10.4%
Materials	10.2%
Telecommunication Services	9.9%
Consumer Staples	8.1%
Health Care	3.7%
Cash and Cash Equivalents	1.4%

Lipper Rankings

Category: Lipper International Large-Cap Core Funds	Rank	Percentile
1 Year	43/377	12
3 Year	3/307	1
5 Year	7/249	3
10 Year	6/141	5

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

Europe	52.1%
United Kingdom	19.1%
France	13.3%
Switzerland	6.6%
Germany	5.7%
Other Europe	7.4%
Pacific Basin	37.5%
Japan	13.7%
Australia	11.2%
China	4.5%
Hong Kong	3.7%
Other Pacific Basin	4.4%
North America	6.3%
Other	1.5%
South America	1.2%
Cash and Cash Equivalents	1.4%

Top 10 Equity Holdings

Company	Country	Sector	Industry
TOTAL S.A.	France	Energy	Integrated Oil & Gas
Cheung Kong (Holdings)       Limited	Hong Kong	Financials	Real Estate Development
Credit Suisse Group,      Registered Shares	Switzerland	Financials	Diversified Capital Markets
Vodafone Group plc	United Kingdom	Telecommunication       Services	Wireless Telecommunication       Service
Unilever plc	United Kingdom	Consumer Staples	Packaged Foods & Meats
Sanofi-Aventis	France	Health Care	Pharmaceuticals
Royal Dutch Shell plc,      Class A	United Kingdom	Energy	Integrated Oil & Gas
Vivendi Universal	France	Consumer       Discretionary	Movies & Entertainment
Foster's Group Limited	Australia	Consumer Staples	Brewers
Barclays plc	United Kingdom	Financials	Diversified Banks

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy International Core Equity Fund

(UNAUDITED)

For the Six Months Ended September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,035.70	1.50%		$	7.63
Class B	$1,000	$1,030.90	2.39%		$	12.19
Class C	$1,000	$1,033.10	2.17%		$	11.08
Class E	$1,000	$1,036.20	1.53%		$	7.84
Class I	$1,000	$1,038.30	1.10%		$	5.61
Class Y	$1,000	$1,036.90	1.36%		$	6.93
Based on 5% Return(2)
Class A	$1,000	$1,017.55	1.50%		$	7.57
Class B	$1,000	$1,013.09	2.39%		$	12.08
Class C	$1,000	$1,014.19	2.17%		$	10.98
Class E	$1,000	$1,017.40	1.53%		$	7.77
Class I	$1,000	$1,019.56	1.10%		$	5.55
Class Y	$1,000	$1,018.26	1.36%		$	6.86

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy International Core Equity Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia - 11.2%
Australia and New Zealand Banking Group Limited (A)		522	$	11,939
Computershare Limited (A)		1,188		11,194
Crown Limited (A)		1,370		11,109
Foster's Group Limited (A)		2,914		17,262
John Fairfax Holdings Limited (A)		7,007		9,922
Myer Holdings Limited (A)		2,544		9,246
Orica Limited (A)		482		11,986
Telstra Corporation Limited (A)		6,102		15,452
				98,110
Brazil - 1.2%
Vivo Participacoes S.A., ADR		377		10,230
Canada - 2.4%
Canadian Natural Resources Limited (A)		331		11,432
Research In Motion Limited (B)		201		9,762
				21,194
China - 4.5%
China Mobile Limited (A)(C)		201		2,058
China Mobile Limited (A)		1,390		14,229
Industrial and Commercial Bank of China Limited, H Shares (A)(D)		7,027		5,235
Industrial and Commercial Bank of China Limited, H Shares (A)		9,205		6,857
ZTE Corporation, H Shares (A)		2,697		10,741
				39,120
France - 13.3%
ALSTOM (A)		272		13,863
AXA S.A. (A)		585		10,236
Sanofi-Aventis (A)		286		19,067
Schneider Electric S.A. (A)		83		10,572
Societe Generale (A)		206		11,839
TOTAL S.A. (A)		645		33,260
Vivendi Universal (A)		639		17,472
				116,309
Germany - 5.7%
Bayer Aktiengesellschaft (A)		232		16,158
DaimlerChrysler AG, Registered Shares (A)		216		13,645
Deutsche Boerse AG (A)		152		10,151
Deutsche Lufthansa Aktiengesellschaft (A)		529		9,700
				49,654
Hong Kong - 3.7%
Cheung Kong (Holdings) Limited (A)		1,323		20,052
New World Development Company Limited (A)		6,249		12,597
				32,649
Israel - 1.5%
Bezeq - Israel Telecommunication Corp., Ltd. (The) (A)		5,400		13,460
Italy - 2.3%
Banca Intesa S.p.A. (A)		2,870		9,322
Mediaset S.p.A. (A)		1,567		11,109
				20,431
Japan - 13.7%
Bridgestone Corporation (A)		779		14,190
JGC Corporation (A)		714		12,393
Komatsu Ltd. (A)		469		10,895
Mitsubishi Corporation (A)		499		11,839
Mitsubishi Electric Corporation (A)		1,266		10,889
Nihon Densan Kabushiki Kaisha (A)		128		11,395
Nissin Kogyo Co., Ltd. (A)		968		15,475
Shin-Etsu Chemical Co., Ltd. (A)		198		9,661
Sumitomo Corporation (A)		1,003		12,924
Trend Micro Incorporated (A)		334		9,951
				119,612
Mexico - 2.6%
Fomento Economico Mexicano, S.A.B. de C.V.		219		11,116
Grupo Modelo, S.A.B. de C.V., Series C (A)		2,076		11,485
				22,601
Netherlands - 1.4%
Fugro N.V. (A)		189		12,399
Norway - 1.1%
StatoilHydro ASA (A)		457		9,528
Russia - 1.4%
Mobile TeleSystems OJSC, ADR		582		12,352
Singapore - 1.2%
CapitaCommercial Trust (A)		8,961		10,085
Spain - 1.2%
Tecnicas Reunidas, S.A. (A)		197		10,506
Switzerland - 6.6%
Credit Suisse Group, Registered Shares (A)		463		19,779
Roche Holdings AG, Genusscheine (A)		95		12,971
Syngenta AG (A)		57		14,200
TEMENOS Group AG (A)(B)		342		10,484
				57,434
Taiwan - 3.2%
High Tech Computer Corp. (A)		539		12,221
Taiwan Semiconductor Manufacturing Company Ltd., ADR		1,546		15,676
				27,897
United Kingdom - 19.1%
BAE Systems plc (A)		2,686		14,444
Barclays plc (A)		3,608		16,979
BG Group plc (A)		351		6,159
Home Retail Group plc (A)		2,848		9,217
Prudential plc (A)		1,484		14,836
Rio Tinto plc (A)		224		13,110
Royal Dutch Shell plc, Class A (A)		586		17,638
tesco plc (A)		1,879		12,517
Unilever plc (A)		674		19,497
Vodafone Group plc (A)		7,921		19,547
WPP Group plc (A)		924		10,222
Xstrata plc (A)		683		13,078
				167,244
United States - 1.3%
Southern Copper Corporation		319		11,213
TOTAL COMMON STOCKS - 98.6%			$	862,028
(Cost: $805,595)

SHORT-TERM SECURITIES	Principal
Commercial Paper (E) - 1.7%
Illinois Tool Works Inc.,
0.170%, 10-6-10		$ 11,000		10,999
John Deere Credit Limited (John Deere Capital Corporation),
0.210%, 10-20-10		4,000		4,000
				14,999
Master Note - 0.3%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (F)		2,313		2,313
TOTAL SHORT-TERM SECURITIES - 2.0%			$	17,312
(Cost: $17,312)
TOTAL INVESTMENT SECURITIES - 100.6%			$	879,340
(Cost: $822,907)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.6%)				(5,041	)
NET ASSETS - 100.0%			$	874,299

Notes to Schedule of Investments

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

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

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $2,058 or 0.2% of net assets.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $5,235 or 0.6% of net assets.

(E)Rate shown is the yield to maturity at September 30, 2010.

(F)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date the variable rate resets.

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

Market Sector Diversification
(as a % of net assets)
Financials	18.5%
Consumer Discretionary	14.1%
Industrials	12.3%
Energy	11.4%
Information Technology	10.4%
Materials	10.2%
Telecommunication Services	9.9%
Consumer Staples	8.1%
Health Care	3.7%
Other+	1.4%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy International Growth Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	95.9%
Consumer Discretionary	16.7%
Consumer Staples	14.5%
Financials	13.0%
Information Technology	11.8%
Industrials	10.3%
Materials	8.1%
Energy	8.0%
Telecommunication Services	6.5%
Health Care	5.1%
Utilities	1.9%
Cash and Cash Equivalents	4.1%

Lipper Rankings

Category: Lipper International Large-Cap Growth Funds	Rank	Percentile
1 Year	71/202	35
3 Year	103/167	62
5 Year	59/126	47
10 Year	52/84	62

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

Europe	58.2%
United Kingdom	19.7%
Germany	12.5%
Switzerland	7.6%
France	6.8%
Other Europe	11.6%
Pacific Basin	29.9%
Japan	9.6%
Australia	5.6%
Hong Kong	5.3%
China	4.9%
Other Pacific Basin	4.5%
North America	5.4%
South America	2.4%
Cash and Cash Equivalents	4.1%

Top 10 Equity Holdings

Company	Country	Sector	Industry
British American Tobacco plc	United Kingdom	Consumer Staples	Tobacco
Foster's Group Limited	Australia	Consumer Staples	Brewers
VINCI	France	Industrials	Construction &       Engineering
Pinault-Printemps-Redoute S.A.	France	Consumer       Discretionary	Department Stores
DaimlerChrysler AG, Registered       Shares	Germany	Consumer       Discretionary	Automobile       Manufacturers
Nestle S.A., Registered Shares	Switzerland	Consumer Staples	Packaged Foods       & Meats
TEMENOS Group AG	Switzerland	Information       Technology	Systems Software
Prudential plc	United Kingdom	Financials	Life & Health       Insurance
Bayer Aktiengesellschaft	Germany	Materials	Diversified       Chemicals
High Tech Computer Corp.	Taiwan	Information       Technology	Computer       Hardware

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy International Growth Fund

(UNAUDITED)

For the Six Months Ended September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,035.10	1.60%		$	8.14
Class B	$1,000	$1,030.40	2.61%		$	13.30
Class C	$1,000	$1,030.50	2.59%		$	13.20
Class E**	$1,000	$1,036.20	1.36%		$	6.92
Class I	$1,000	$1,037.20	1.21%		$	6.21
Class Y	$1,000	$1,036.50	1.42%		$	7.23
Based on 5% Return(2)
Class A	$1,000	$1,017.05	1.60%		$	8.07
Class B	$1,000	$1,011.99	2.61%		$	13.18
Class C	$1,000	$1,012.10	2.59%		$	13.08
Class E**	$1,000	$1,018.25	1.36%		$	6.86
Class I	$1,000	$1,019.00	1.21%		$	6.16
Class Y	$1,000	$1,017.96	1.42%		$	7.16

*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, 2010, and divided by 365.

**Class closed to investment.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy International Growth Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares			Value
Australia - 5.6%
Foster's Group Limited (A)		771	$	4,567
Orica Limited (A)		78		1,930
Telstra Corporation Limited (A)		1,376		3,485
				9,982
Belgium - 1.1%
InBev NV (A)		34		1,999
Brazil - 2.4%
Banco Santander Brasil S.A., Units (A)(B)		126		1,705
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias eFuturos (A)		317		2,653
				4,358
Canada - 1.1%
Canadian Natural Resources Limited (A)		57		1,958
China - 4.9%
China Construction Bank Corporation (A)		2,848		2,496
Sino-Forest Corporation, Class A (A)(C)		97		1,613
Tingyi Holding Corp. (A)		764		2,107
Wynn Macau, Limited (A)(C)		1,428		2,470
				8,686
France - 6.8%
Cap Gemini S.A. (A)		28		1,424
Pinault-Printemps-Redoute S.A. (A)		26		4,175
Technip-Coflexip (A)		28		2,230
VINCI (A)		88		4,393
				12,222
Germany - 10.4%
adidas AG (A)		57		3,552
Bayer Aktiengesellschaft (A)		56		3,886
DaimlerChrysler AG, Registered Shares (A)		65		4,128
Deutsche Boerse AG (A)		34		2,239
QIAGEN N.V. (A)(C)		118		2,112
SAP Aktiengesellschaft (A)		54		2,685
				18,602
Hong Kong - 5.3%
Cheung Kong (Holdings) Limited (A)		215		3,258
Henderson Land Development Company Limited (A)		430		3,062
Yue Yuen Industrial (Holdings) Limited (A)		874		3,239
				9,559
India - 2.4%
Genpact Limited (C)		54		964
Hero Honda Motors Limited (A)		47		1,960
INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED (A)(B)		285		1,284
				4,208
Italy - 1.7%
Saipem S.p.A. (A)		74		2,959
Japan - 9.6%
Bridgestone Corporation (A)		175		3,182
Honda Motor Co., Ltd. (A)		79		2,793
JGC Corporation (A)		160		2,777
KONAMI CORPORATION (A)		129		2,283
Mitsubishi Corporation (A)		129		3,057
Nissin Kogyo Co., Ltd. (A)		143		2,280
YAMADA-DENKI Co., Ltd. (A)		12		739
				17,111
Mexico - 1.3%
Grupo Modelo, S.A.B. de C.V., Series C (A)		428		2,370
Netherlands - 2.1%
ASML Holding N.V., Ordinary Shares (A)		43		1,298
Koninklijke KPN N.V. (A)		163		2,523
				3,821
Norway - 1.3%
Seadrill Limited (A)		83		2,390
Spain - 2.7%
Tecnicas Reunidas, S.A. (A)		47		2,515
Telefonica, S.A. (A)		97		2,401
				4,916
Sweden - 2.7%
ASSA ABLOY AB, Class B (A)		91		2,297
Telefonaktiebolaget LM Ericsson, B Shares (A)		228		2,503
				4,800
Switzerland - 7.6%
Credit Suisse Group, Registered Shares (A)		46		1,979
Nestle S.A., Registered Shares (A)		77		4,076
Swatch Group Ltd (The), Bearer Shares (A)		2		583
Syngenta AG (A)		12		2,910
TEMENOS Group AG (A)(C)		132		4,033
				13,581
Taiwan - 2.1%
High Tech Computer Corp. (A)		164		3,731
United Kingdom - 19.7%
Barclays plc (A)		165		774
British American Tobacco plc (A)		135		5,036
Capita Group plc (The) (A)		226		2,795
Diageo plc (A)		188		3,239
GlaxoSmithKline plc (A)		164		3,229
International Power plc (A)		551		3,358
Prudential plc (A)		395		3,950
Rio Tinto plc (A)		33		1,952
Serco Group plc (A)		300		2,898
tesco plc (A)		343		2,282
Vodafone Group plc (A)		1,398		3,450
Xstrata plc (A)		116		2,224
				35,187
United States - 3.0%
QUALCOMM Incorporated		46		2,084
Schlumberger Limited		40		2,446
Virgin Media Inc.		40		923
				5,453
TOTAL COMMON STOCKS - 93.8%			$	167,893
(Cost: $153,908)
PREFERRED STOCKS - 2.1%
Germany
Fresenius AG (A)		46	$	3,704
(Cost: $3,340)

SHORT-TERM SECURITIES	Principal
Commercial Paper (D) - 2.2%
John Deere Credit Limited (John Deere Capital Corporation),
0.210%, 10-20-10	$	4,000		4,000
Master Note - 2.7%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (E)		4,819		4,819
TOTAL SHORT-TERM SECURITIES - 4.9%			$	8,819
(Cost: $8,819)
TOTAL INVESTMENT SECURITIES - 100.8%			$	180,416
(Cost: $166,067)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.8%)				(1,517	)
NET ASSETS - 100.0%			$	178,899

Notes to Schedule of Investments

The following total return swaps were outstanding at September 30, 2010:

Counterparty	Notional Amount	Underlying Security	Termination Date	Financing Fee#	Unrealized Appreciation
UBS AG, London	$1,493	Sany Heavy Industry Co., Ltd.	4-21-11	USD LIBOR + 0.700%		$	583
UBS AG, London	745	Sany Heavy Industry Co., Ltd.	4-25-11	USD LIBOR + 0.700%			291
UBS AG, London	735	Sany Heavy Industry Co., Ltd.	4-26-11	USD LIBOR + 0.700%			287
						$	1,161

#The Fund pays the financing fee multiplied by the notional amount each quarter. On the termination date of the swap contracts, the Fund will pay/receive the return of the underlying security.

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

(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $2,989 or 1.7% of net assets.

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

(D)Rate shown is the yield to maturity at September 30, 2010.

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date the variable rate resets.

Market Sector Diversification
(as a % of net assets)
Consumer Discretionary	16.7%
Consumer Staples	14.5%
Financials	13.0%
Information Technology	11.8%
Industrials	10.3%
Materials	8.1%
Energy	8.0%
Telecommunication Services	6.5%
Health Care	5.1%
Utilities	1.9%
Other+	4.1%
+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Large Cap Growth Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	99.6%
Information Technology	43.1%
Consumer Discretionary	19.5%
Financials	8.6%
Health Care	8.4%
Industrials	7.7%
Energy	5.1%
Consumer Staples	3.8%
Materials	3.4%
Cash and Cash Equivalents	0.4%

Lipper Rankings

Category: Lipper Large-Cap Growth Funds	Rank	Percentile
1 Year	627/852	74
3 Year	451/732	62
5 Year	124/614	21
10 Year	51/344	15

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Apple Inc.	Information Technology
NetApp, Inc.	Information Technology
Google Inc., Class A	Information Technology
Cognizant Technology Solutions Corporation, Class A	Information Technology
Microchip Technology Incorporated	Information Technology
Schlumberger Limited	Energy
JPMorgan Chase & Co.	Financials
Emerson Electric Co.	Industrials
Allergan, Inc.	Health Care
VMware, Inc., Class A	Information Technology

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Large Cap Growth Fund

(UNAUDITED)

For the Six Months Ended September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10			Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000		$	983.10	1.15%	$	5.75
Class B	$1,000		$	978.20	2.36%	$	11.67
Class C	$1,000		$	979.90	2.00%	$	9.90
Class E	$1,000		$	983.90	1.15%	$	5.75
Class I	$1,000		$	984.30	0.92%	$	4.56
Class R	$1,000		$	982.10	1.46%	$	7.23
Class Y	$1,000		$	984.20	1.06%	$	5.26
Based on 5% Return(2)
Class A	$1,000		$	1,019.30	1.15%	$	5.86
Class B	$1,000		$	1,013.23	2.36%	$	11.88
Class C	$1,000		$	1,015.06	2.00%	$	10.08
Class E	$1,000		$	1,019.30	1.15%	$	5.86
Class I	$1,000		$	1,020.46	0.92%	$	4.65
Class R	$1,000		$	1,017.75	1.46%	$	7.36
Class Y	$1,000		$	1,019.75	1.06%	$	5.35

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Large Cap Growth Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS		Shares			Value
Aerospace & Defense - 3.0%
Precision Castparts Corp.			189	$	24,120
Air Freight & Logistics - 0.1%
FedEx Corporation			10		838
Application Software - 2.3%
salesforce.com, inc. (A)			168		18,771
Asset Management & Custody Banks - 2.6%
T. Rowe Price Group, Inc.			414		20,750
Automotive Retail - 1.6%
AutoZone, Inc. (A)			29		6,570
O'Reilly Automotive, Inc. (A)			114		6,086
					12,656
Broadcasting - 0.9%
Discovery Holding Company, Class A (A)			162		7,046
Casinos & Gaming - 4.6%
Las Vegas Sands, Inc. (A)			370		12,895
Wynn Resorts, Limited			277		24,009
					36,904
Communications Equipment - 6.2%
Cisco Systems, Inc. (A)			1,130		24,747
Juniper Networks, Inc. (A)			130		3,930
QUALCOMM Incorporated			504		22,750
					51,427
Computer Hardware - 9.7%
Apple Inc. (A)			254		72,017
Hewlett-Packard Company			183		7,686
					79,703
Computer Storage & Peripherals - 4.7%
NetApp, Inc. (A)			764		38,035
Consumer Finance - 2.1%
American Express Company			406		17,060
Data Processing & Outsourced Services - 3.0%
Visa Inc., Class A			323		23,964
Department Stores - 2.5%
Kohl's Corporation (A)			388		20,440
Electrical Components & Equipment - 3.6%
Emerson Electric Co.			562		29,589
Environmental & Facilities Services - 1.0%
Stericycle, Inc. (A)			120		8,310
Fertilizers & Agricultural Chemicals - 0.1%
Monsanto Company			15		729
Footwear - 1.1%
NIKE, Inc., Class B			113		9,032
General Merchandise Stores - 0.8%
Target Corporation			124		6,637
Health Care Equipment - 1.0%
Intuitive Surgical, Inc. (A)			28		8,030
Home Improvement Retail - 0.2%
Home Depot, Inc. (The)			52		1,638
Hotels, Resorts & Cruise Lines - 4.0%
Carnival Corporation			308		11,753
Starwood Hotels & Resorts Worldwide, Inc.			401		21,073
					32,826
Household Products - 0.6%
Colgate-Palmolive Company			64		4,888
Industrial Gases - 1.8%
Praxair, Inc.			168		15,137
Internet Software & Services - 4.7%
Google Inc., Class A (A)			72		37,909
IT Consulting & Other Services - 4.4%
Cognizant Technology Solutions Corporation, Class A (A)			553		35,671
Life Sciences Tools & Services - 0.5%
Thermo Fisher Scientific Inc. (A)			86		4,108
Movies & Entertainment - 1.0%
Walt Disney Company (The)			242		8,006
Oil & Gas Equipment & Services - 5.1%
Halliburton Company			245		8,115
Schlumberger Limited			536		33,024
					41,139
Other Diversified Financial Services - 3.9%
JPMorgan Chase & Co.			844		32,116
Personal Products - 0.6%
Estee Lauder Companies Inc. (The), Class A			82		5,204
Pharmaceuticals - 6.9%
Abbott Laboratories			55		2,890
Allergan, Inc.			431		28,668
Teva Pharmaceutical Industries Limited, ADR			458		24,133
					55,691
Restaurants - 2.8%
Starbucks Corporation			488		12,490
YUM! Brands, Inc.			228		10,479
					22,969
Semiconductors - 4.5%
Altera Corporation			27		805
Broadcom Corporation, Class A			73		2,583
Microchip Technology Incorporated			1,057		33,243
					36,631
Soft Drinks - 2.6%
Coca-Cola Company (The)			141		8,275
PepsiCo, Inc.			185		12,291
					20,566
Specialty Chemicals - 1.5%
Ecolab Inc.			233		11,827
Systems Software - 3.6%
Microsoft Corporation			168		4,112
VMware, Inc., Class A (A)			293		24,896
					29,008
TOTAL COMMON STOCKS - 99.6%				$	809,375
(Cost: $660,820)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) - 0.3%
E.I. du Pont de Nemours and Company,
0.190%, 10-18-10			$ 2,500		2,500
Master Note - 0.3%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (C)			2,055		2,055
TOTAL SHORT-TERM SECURITIES - 0.6%				$	4,555
(Cost: $4,555)
TOTAL INVESTMENT SECURITIES - 100.2%				$	813,930
(Cost: $665,375)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.2%)					(1,718	)
NET ASSETS - 100.0%				$	812,212

Notes to Schedule of Investments

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

(B)Rate shown is the yield to maturity at September 30, 2010.

(C)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Limited-Term Bond Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Bonds	97.4%
United States Government and            Government Agency Obligations	50.7%
Corporate Debt Securities	44.2%
Municipal Bonds - Taxable	2.5%
Cash and Cash Equivalents	2.6%

Lipper Rankings

Category: Lipper Short-Intermediate       Investment Grade Debt Funds	Rank	Percentile
1 Year	135/143	94
3 Year	79/133	59
5 Year	83/123	67
10 Year	69/73	94

Past performance is no guarantee of future results. Rankings are for Class C shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

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.

Quality Weightings

Investment Grade	97.1%
AAA	53.7%
AA	7.9%
A	15.5%
BBB	20.0%
Non-Investment Grade	0.3%
BB	0.3%
Cash and Cash Equivalents	2.6%

Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's.

ILLUSTRATION OF FUND EXPENSES

Ivy Limited-Term Bond Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,035.40	0.94%	$4.78
Class B	$1,000	$1,031.10	1.76%	$8.94
Class C	$1,000	$1,031.70	1.65%	$8.43
Class E	$1,000	$1,034.90	1.00%	$5.09
Class I	$1,000	$1,036.70	0.69%	$3.46
Class Y	$1,000	$1,035.50	0.94%	$4.78
Based on 5% Return(2)
Class A	$1,000	$1,020.37	0.94%	$4.75
Class B	$1,000	$1,016.25	1.76%	$8.87
Class C	$1,000	$1,016.80	1.65%	$8.37
Class E	$1,000	$1,020.05	1.00%	$5.05
Class I	$1,000	$1,021.62	0.69%	$3.44
Class Y	$1,000	$1,020.37	0.94%	$4.75

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Limited-Term Bond Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

CORPORATE DEBT SECURITIES	Principal		Value
Air Freight & Logistics - 0.6%
Federal Express Corporation,
9.650%, 6-15-12		$ 6,005	$	6,802
Airlines - 0.5%
Southwest Airlines Co.,
6.500%, 3-1-12		5,750		6,093
Asset Management & Custody Banks - 0.4%
State Street Corporation,
4.300%, 5-30-14		2,000		2,200
TIAA Global Markets, Inc.,
5.125%, 10-10-12 (A)		2,250		2,434
				4,634
Asset-Backed Security - 0.5%
American Express Travel Related Services Co., Inc.,
5.250%, 11-21-11 (B)		6,000		6,249
Brewers - 1.0%
Anheuser-Busch InBev Worldwide Inc.:
5.375%, 11-15-14 (A)		5,500		6,176
4.125%, 1-15-15		5,000		5,384
				11,560
Broadcasting - 0.4%
NBC Universal, Inc.,
3.650%, 4-30-15 (A)		5,000		5,280
Cable & Satellite - 1.8%
Comcast Cable Communications, Inc.,
6.750%, 1-30-11		5,000		5,097
DirecTV Holdings LLC and DirecTV Financing Co.,
7.625%, 5-15-16		10,000		11,151
Time Warner Cable Inc.,
3.500%, 2-1-15		3,750		3,937
				20,185
Communications Equipment - 0.4%
Cisco Systems, Inc.,
5.250%, 2-22-11		5,000		5,091
Computer & Electronics Retail - 1.0%
Best Buy Co., Inc.,
6.750%, 7-15-13		11,030		12,337
Computer Hardware - 1.7%
Hewlett-Packard Company,
2.125%, 9-13-15		17,500		17,660
International Business Machines Corporation,
6.500%, 10-15-13		2,500		2,906
				20,566
Construction & Farm Machinery & Heavy Trucks - 1.2%
Caterpillar Inc.,
7.000%, 12-15-13		2,000		2,374
John Deere Capital Corporation,
2.800%, 9-18-17		12,000		12,100
				14,474
Consumer Finance - 1.1%
American Express Credit Corporation,
2.750%, 9-15-15	11,000			11,075
Capital One Financial Corporation,
7.375%, 5-23-14		2,000		2,335
				13,410
Data Processing & Outsourced Services - 1.0%
Western Union Company (The),
6.500%, 2-26-14		10,200		11,718
Diversified Banks - 1.3%
Barclays Bank plc,
2.500%, 1-23-13		5,000		5,109
U.S. Bancorp,
3.150%, 3-4-15		5,000		5,287
Wells Fargo & Company,
3.625%, 4-15-15		3,500		3,713
Wells Fargo Financial, Inc.,
5.500%, 8-1-12		1,487		1,599
				15,708
Diversified Capital Markets - 0.9%
Deutsche Bank AG,
3.450%, 3-30-15		9,900		10,443
Diversified Chemicals - 0.5%
Dow Chemical Company (The),
7.600%, 5-15-14		5,000		5,842
Diversified Metals & Mining - 0.9%
BHP Billiton Finance (USA) Limited,
5.500%, 4-1-14		4,000		4,502
Rio Tinto Finance (USA) Limited,
8.950%, 5-1-14		5,000		6,175
				10,677
Drug Retail - 1.1%
CVS Caremark Corporation,
3.250%, 5-18-15		6,500		6,792
Walgreen Co.,
4.875%, 8-1-13		6,000		6,657
				13,449
Electric Utilities - 2.1%
Allegheny Energy, Inc.,
8.250%, 4-15-12 (A)		2,540		2,743
DPL Inc.,
6.875%, 9-1-11		10,000		10,531
Oncor Electric Delivery Company,
6.375%, 5-1-12		7,500		8,168
Southern Power Company,
6.250%, 7-15-12		4,500		4,901
				26,343
Environmental & Facilities Services - 0.8%
Allied Waste Industries, Inc.,
6.500%, 11-15-10		4,375		4,404
Waste Management, Inc.,
6.375%, 3-11-15		4,175		4,897
				9,301
Food Distributors - 0.7%
Cargill, Inc.,
5.600%, 9-15-12 (A)		7,732		8,355
Health Care Services - 0.3%
Medco Health Solutions, Inc.,
2.750%, 9-15-15		3,500		3,557
Home Improvement Retail - 0.3%
Lowe's Companies, Inc.,
5.600%, 9-15-12		3,736		4,070
Industrial Conglomerates - 1.1%
General Electric Capital Corporation,
3.750%, 11-14-14		8,000		8,475
General Electric Capital Corporation (Federal Deposit Insurance Corporation),
3.000%, 12-9-11 (C)		6,000		6,183
				14,658
Industrial Machinery - 0.5%
Illinois Tool Works Inc.,
5.150%, 4-1-14		5,000		5,676
Integrated Oil & Gas - 2.2%
Chevron Corporation,
3.950%, 3-3-14		5,000		5,469
ConocoPhillips,
4.600%, 1-15-15		5,500		6,179
Petro-Canada,
4.000%, 7-15-13		9,500		10,071
Western Oil Sands Inc.,
8.375%, 5-1-12		4,000		4,405
				26,124
Integrated Telecommunication Services - 1.9%
AT&T Inc.,
4.950%, 1-15-13		500		543
AT&T Wireless Services, Inc.,
7.875%, 3-1-11		9,885		10,180
Deutsche Telekom International Finance B.V.,
4.875%, 7-8-14		4,000		4,399
Verizon New York Inc.,
6.875%, 4-1-12		7,050		7,604
				22,726
Internet Software & Services - 0.8%
British Telecommunications plc:
5.150%, 1-15-13		1,000		1,069
5.950%, 1-15-18		7,878		8,782
				9,851
Investment Banking & Brokerage - 1.7%
Goldman Sachs Group, Inc. (The):
6.875%, 1-15-11		3,500		3,562
3.700%, 8-1-15		7,000		7,165
Morgan Stanley,
4.100%, 1-26-15		10,000		10,336
				21,063
Life & Health Insurance - 1.0%
MetLife Global Funding I:
5.125%, 6-10-14 (A)		3,500		3,884
2.500%, 9-29-15 (B)		8,000		8,019
				11,903
Multi-Utilities - 1.3%
NiSource Finance Corp.,
7.875%, 11-15-10		10,000		10,069
SCANA Corporation,
6.250%, 2-1-12		5,000		5,319
				15,388
Office Electronics - 0.2%
Xerox Corporation,
7.625%, 6-15-13	2,435			2,466
Oil & Gas Drilling - 0.4%
Weatherford International, Inc.,
5.950%, 6-15-12		5,000		5,361
Oil & Gas Storage & Transportation - 2.1%
AGL Capital Corporation,
7.125%, 1-14-11		4,000		4,069
DCP Midstream Operating, LP,
3.250%, 10-1-15		5,500		5,525
DCP Midstream, LLC,
9.700%, 12-1-13 (A)		4,500		5,515
Maritimes & Northeast Pipeline, L.L.C.,
7.500%, 5-31-14 (A)		5,762		6,290
Northern Natural Gas,
7.000%, 6-1-11 (B)		4,000		4,155
				25,554
Other Diversified Financial Services - 2.5%
Bank of America Corporation,
6.500%, 8-1-16		5,000		5,625
Bank of America Corporation (Federal Deposit Insurance Corporation),
3.125%, 6-15-12 (C)		6,000		6,251
Citigroup Inc. (Federal Deposit Insurance Corporation),
2.875%, 12-9-11 (C)		6,000		6,174
JPMorgan Chase & Co.:
4.650%, 6-1-14		5,000		5,475
3.700%, 1-20-15		6,850		7,238
				30,763
Packaged Foods & Meats - 2.0%
General Mills, Inc.,
6.000%, 2-15-12		5,000		5,333
Kellogg Company,
6.600%, 4-1-11		8,000		8,244
Kraft Foods Inc.:
2.625%, 5-8-13		1,810		1,876
6.750%, 2-19-14		5,000		5,816
4.125%, 2-9-16		2,500		2,706
				23,975
Pharmaceuticals - 2.2%
Eli Lilly and Company,
4.200%, 3-6-14		5,775		6,358
Merck & Co., Inc.,
4.000%, 6-30-15		2,000		2,214
Novartis Capital Corporation,
4.125%, 2-10-14		2,000		2,184
Pfizer Inc.,
5.350%, 3-15-15		5,000		5,771
Roche Holdings Ltd,
5.000%, 3-1-14 (A)		4,000		4,473
Wyeth,
5.500%, 2-1-14		5,000		5,675
				26,675
Property & Casualty Insurance - 1.3%
Berkshire Hathaway Finance Corporation:
4.000%, 4-15-12		8,000		8,390
4.750%, 5-15-12		550		584
5.000%, 8-15-13		1,500		1,660
Fidelity National Financial, Inc.,
6.600%, 5-15-17	5,000			5,161
				15,795
Restaurants - 0.5%
YUM! Brands, Inc.,
4.250%, 9-15-15		5,750		6,268
Soft Drinks - 0.8%
Bottling Group, LLC,
6.950%, 3-15-14		2,000		2,372
Coca-Cola Company (The),
3.625%, 3-15-14		4,200		4,540
Coca-Cola Enterprises Inc.,
4.250%, 3-1-15		3,000		3,325
				10,237
Systems Software - 0.7%
Microsoft Corporation,
1.625%, 9-25-15		8,500		8,510
Wireless Telecommunication Service - 0.5%
America Movil, S.A.B. de C.V.,
3.625%, 3-30-15		2,800		2,917
American Tower Corporation,
4.625%, 4-1-15		3,000		3,201
				6,118
TOTAL CORPORATE DEBT SECURITIES - 44.2%			$	535,255
(Cost: $504,090)
MUNICIPAL BONDS - TAXABLE
Georgia - 0.2%
Hosp Auth of Savannah, Rev Bonds, St. Joseph's/Candler Hlth System, Inc.,       Ser 1998C,
6.625%, 7-1-18		1,785		1,872
Hawaii - 0.4%
Cnty of Kauai, Taxable GO Bonds, Ser 2010A:
1.955%, 8-1-13		515		528
2.498%, 8-1-14		1,240		1,288
3.335%, 8-1-16		3,100		3,286
				5,102
Nebraska - 0.6%
NE Pub Power Dist, General Rev Bonds, Ser 2008A,
5.140%, 1-1-14		6,150		6,841
Rhode Island - 0.4%
Providence Hlth & Svc Oblig Group, Direct Oblig Notes, Ser 2009A,
5.050%, 10-1-14		5,000		5,422
Utah - 0.9%
The Cent UT Wtr Conservancy Dist, Taxable Wtr Conservancy Rev Bds,       Ser 2010A:
4.150%, 10-1-20		6,455		6,749
4.400%, 10-1-21		4,150		4,333
				11,082
TOTAL MUNICIPAL BONDS - TAXABLE - 2.5%			$	30,319
(Cost: $28,566)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations - 11.7%
Federal Farm Credit Bank:
4.750%, 9-30-15	4,000	4,605
5.250%, 1-6-16	4,000	4,706
Federal Home Loan Bank:
1.750%, 12-14-12	16,000	16,378
4.375%, 9-13-13	6,000	6,622
2.375%, 3-14-14	7,000	7,309
2.875%, 9-11-15	8,000	8,409
Federal Home Loan Mortgage Corporation,
1.625%, 4-15-13	10,000	10,227
Federal National Mortgage Association:
4.000%, 1-18-13	2,500	2,523
4.375%, 7-17-13	8,000	8,786
1.500%, 6-15-15	10,000	10,081
1.450%, 6-29-15	11,000	11,114
3.000%, 6-30-15	19,000	19,511
1.250%, 8-6-15	12,000	12,086
3.100%, 10-16-15	10,000	10,373
2.000%, 12-30-15	10,000	10,004
		142,734
Mortgage-Backed Obligations - 17.0%
Federal Home Loan Mortgage Corporation Adjustable Rate Participation       Certificates:
4.500%, 1-15-18	2,405	2,525
4.000%, 6-15-22	3,698	3,862
4.000%, 2-15-23	5,979	6,272
4.500%, 6-15-27	7,246	7,614
4.500%, 5-15-32	7,000	7,685
5.000%, 9-15-34	4,628	4,875
Federal Home Loan Mortgage Corporation Agency REMIC/CMO:
5.000%, 5-15-31	874	892
5.500%, 12-15-31	2,193	2,289
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
5.500%, 4-1-20	2,946	3,184
4.500%, 10-1-20	3,353	3,561
6.000%, 11-1-36	1,564	1,686
Federal National Mortgage Association Agency REMIC/CMO:
4.720%, 9-20-12	5,642	5,928
4.780%, 1-25-17	4,031	4,031
5.000%, 11-25-17	9,268	10,082
5.500%, 12-25-17	7,162	7,915
4.500%, 2-25-28	1,602	1,656
5.500%, 7-15-32	4,687	5,018
5.000%, 12-15-34	5,000	5,418
4.500%, 3-25-37	8,145	8,723
5.500%, 4-25-37	6,179	6,727
4.000%, 3-25-39	4,289	4,487
4.000%, 11-25-39	10,663	11,294
4.500%, 6-25-40	11,251	12,014
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
1.125%, 9-27-13	10,500	10,529
5.500%, 9-1-17	8,107	8,781
4.500%, 9-1-19	8,402	8,913
5.500%, 2-1-22	8,215	8,882
6.000%, 6-1-22	4,447	4,824
5.500%, 11-1-22	883	955
5.000%, 4-1-28	4,938	5,218
5.000%, 5-1-28	1,266	1,337

5.000%, 6-25-32	2,385		2,485
6.000%, 7-1-38	3,654		3,929
Government National Mortgage Association Agency REMIC/CMO:
4.585%, 8-16-34	1,700		1,855
5.000%, 4-16-39	4,531		4,842
4.500%, 8-20-40	13,907		14,684
			204,972
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 28.7%		$	347,706
(Cost: $338,880)
UNITED STATES GOVERNMENT OBLIGATIONS - 22.0%
Treasury Obligations
United States Treasury Notes:
4.625%, 2-29-12	5,000		5,303
1.000%, 4-30-12	20,000		20,202
3.875%, 2-15-13	6,000		6,486
3.375%, 7-31-13	10,000		10,791
4.250%, 8-15-13	11,500		12,701
1.500%, 12-31-13	20,000		20,502
1.750%, 3-31-14	20,000		20,652
2.375%, 8-31-14	10,000		10,553
2.375%, 2-28-15	10,000		10,549
2.500%, 4-30-15	35,000		37,110
2.125%, 5-31-15	25,000		26,070
3.000%, 2-28-17	25,000		26,893
2.375%, 7-31-17	710		734
3.500%, 5-15-20	30,000		32,566
2.625%, 8-15-20	25,000		25,230
(Cost: $257,306)		$	266,342

SHORT-TERM SECURITIES
Commercial Paper (D) - 1.0%
CVS Caremark Corporation,
0.270%, 10-4-10	2,000			2,000
McCormick & Co. Inc.,
0.000%, 10-1-10		2,195		2,195
Straight-A Funding, LLC (Federal Financing Bank),
0.210%, 11-5-10		5,000		4,999
W.W. Grainger, Inc.,
0.160%, 10-6-10		3,000		3,000
				12,194
Master Note - 0.1%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (E)		1,686		1,686
Municipal Obligations - Taxable - 0.4%
LA Pub Fac Auth, Var Rate Rev Bonds (Air Products and Chemicals Proj),       Ser 2009A (Bank of New York Mellon Trust Company, N.A. (The)),
0.500%, 10-1-10 (E)		3,000		3,000
Los Angeles, CA, Wastewater Sys Sub Rev Bonds, Var Rate Rfdg,       Ser 2008-G (Bank of America, N.A.),
0.260%, 10-1-10 (E)		2,000		2,000
				5,000
United States Government Agency Obligations - 0.2%
Overseas Private Investment Corporation,
0.240%, 12-15-10 (E)		1,889		1,889
TOTAL SHORT-TERM SECURITIES - 1.7%			$	20,769
(Cost: $20,769)
TOTAL INVESTMENT SECURITIES - 99.1%			$	1,200,391
(Cost: $1,149,611)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.9%				11,096
NET ASSETS - 100.0%			$	1,211,487

Notes to Schedule of Investments

(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $45,150 or 3.7% of net assets.

(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $18,423 or 1.5% of net assets.

(C)Security is fully guaranteed by the Federal Deposit Insurance Corporation for both interest and principal under the Debt Guarantee Program of the Temporary Liquidity Guarantee Program. The guarantee expires at the earlier of the security's maturity date or December 31, 2012.

(D)Rate shown is the yield to maturity at September 30, 2010.

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Managed Funds

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Ivy Managed European/Pacific Fund

Ivy Pacific Opportunities Fund, Class I	80.4%
Ivy European Opportunities Fund, Class I	19.4%
Cash and Cash Equivalents	0.2%

Ivy Managed International Opportunities Fund

Ivy Pacific Opportunities Fund, Class I	39.3%
Ivy International Core Equity Fund, Class I	20.2%
Ivy International Balanced Fund, Class I	20.1%
Ivy European Opportunities Fund, Class I	10.2%
Ivy International Growth Fund, Class I	10.1%
Cash and Cash Equivalents	0.1%

ILLUSTRATION OF FUND EXPENSES

Ivy Managed Funds

(UNAUDITED)

Ivy Managed European/Pacific Fund

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,059.00	0.63%	$3.29
Class B	$1,000	$1,054.50	1.52%	$7.81
Class C	$1,000	$1,055.60	1.43%	$7.40
Class E**	$1,000	$1,060.20	0.49%	$2.58
Class I	$1,000	$1,061.20	0.24%	$1.24
Class Y	$1,000	$1,060.20	0.61%	$3.19
Based on 5% Return(2)
Class A	$1,000	$1,021.91	0.63%	$3.24
Class B	$1,000	$1,017.43	1.52%	$7.67
Class C	$1,000	$1,017.91	1.43%	$7.26
Class E**	$1,000	$1,022.59	0.49%	$2.53
Class I	$1,000	$1,023.85	0.24%	$1.21
Class Y	$1,000	$1,022.01	0.61%	$3.13

Ivy Managed International Opportunities Fund

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,042.70	0.52%	$2.66
Class B	$1,000	$1,038.20	1.37%	$6.93
Class C	$1,000	$1,038.10	1.27%	$6.52
Class E**	$1,000	$1,041.40	0.42%	$2.14
Class I	$1,000	$1,042.60	0.17%	$0.82
Class Y	$1,000	$1,041.50	0.52%	$2.65
Based on 5% Return(2)
Class A	$1,000	$1,022.49	0.52%	$2.63
Class B	$1,000	$1,018.22	1.37%	$6.86
Class C	$1,000	$1,018.68	1.27%	$6.46
Class E**	$1,000	$1,022.98	0.42%	$2.12
Class I	$1,000	$1,024.23	0.17%	$0.81
Class Y	$1,000	$1,022.48	0.52%	$2.63

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the tables), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2010, and divided by 365.

**Class closed to investment.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Managed Funds (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

Ivy Managed European/Pacific Fund

AFFILIATED MUTUAL FUNDS	Shares			Value
Ivy European Opportunities Fund, Class I			743	$	16,435
Ivy Pacific Opportunities Fund, Class I (A)			4,186		67,978
TOTAL AFFILIATED MUTUAL FUNDS - 99.8%				$	84,413
(Cost: $70,483)
SHORT-TERM SECURITIES - 0.1%	Principal
Master Note
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (B)		$90		$	90
(Cost: $90)
TOTAL INVESTMENT SECURITIES - 99.9%				$	84,503
(Cost: $70,573)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.1%					38
NET ASSETS - 100.0%				$	84,541

Notes to Schedule of Investments

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

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

Ivy Managed International Opportunities Fund

AFFILIATED MUTUAL FUNDS	Shares			Value
Ivy European Opportunities Fund, Class I			782	$	17,306
Ivy International Balanced Fund, Class I (A)			2,355		34,172
Ivy International Core Equity Fund, Class I			2,222		34,378
Ivy International Growth Fund, Class I			564		17,119
Ivy Pacific Opportunities Fund, Class I (A)			4,116		66,851
TOTAL AFFILIATED MUTUAL FUNDS - 99.9%				$	169,826
(Cost: $152,617)
SHORT-TERM SECURITIES - 0.1%	Principal
Master Note
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (B)		$109		$	109
(Cost: $109)
TOTAL INVESTMENT SECURITIES - 100.0%				$	169,935
(Cost: $152,726)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.0%					10
NET ASSETS - 100.0%				$	169,945

Notes to Schedule of Investments

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

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Micro Cap Growth Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	93.0%
Information Technology	36.1%
Consumer Discretionary	21.1%
Health Care	17.7%
Industrials	8.6%
Energy	4.5%
Materials	1.9%
Consumer Staples	1.6%
Telecommunication Services	0.8%
Financials	0.7%
Cash and Cash Equivalents	7.0%

Lipper Rankings

Category: Lipper Small-Cap Growth Funds	Rank	Percentile
1 Year	226/530	43

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Fortinet, Inc.	Information Technology
CommVault Systems, Inc.	Information Technology
Questcor Pharmaceuticals, Inc.	Health Care
IntraLinks Holdings, Inc.	Information Technology
Grand Canyon Education, Inc.	Consumer Discretionary
Rentrak Corporation	Consumer Discretionary
NetScout Systems, Inc.	Information Technology
Pharmasset, Inc.	Health Care
T-3 Energy Services, Inc.	Energy
Marten Transport, Ltd.	Industrials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Micro Cap Growth Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,027.90	1.95%	$	9.94
Class B	$1,000	$1,019.80	3.57%	$	18.08
Class C	$1,000	$1,023.00	2.83%	$	14.36
Class I	$1,000	$1,029.80	1.57%	$	8.02
Class Y	$1,000	$1,028.70	1.83%	$	9.33
Based on 5% Return(2)
Class A	$1,000	$1,015.30	1.95%	$	9.87
Class B	$1,000	$1,007.18	3.57%	$	17.96
Class C	$1,000	$1,010.90	2.83%	$	14.28
Class I	$1,000	$1,017.19	1.57%	$	7.97
Class Y	$1,000	$1,015.89	1.83%	$	9.27

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Micro Cap Growth Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS		Shares		Value
Advertising - 3.4%
MDC Partners Inc., Class A			52	$	701
MediaMind Technologies Inc. (A)			50		687
ReachLocal, Inc. (A)			22		299
					1,687
Aerospace & Defense - 1.2%
Global Defense Technology & Systems, Inc. (A)			42		574
Apparel Retail - 1.5%
Citi Trends Inc. (A)			22		521
New York & Company, Inc. (A)			85		217
					738
Apparel, Accessories & Luxury Goods - 1.0%
Volcom, Inc. (A)			25		470
Application Software - 8.1%
ClickSoftware Technologies Ltd. (A)			26		170
Motricity, Inc. (A)			28		337
NetScout Systems, Inc. (A)			43		886
OPNET Technologies, Inc.			33		594
RealPage, Inc. (A)			34		645
SciQuest, Inc. (A)			22		269
Sonic Solutions (A)			32		361
Ultimate Software Group, Inc. (The) (A)			9		363
VanceInfo Technologies Inc., ADR (A)			11		343
					3,968
Asset Management & Custody Banks - 0.7%
Envestnet, Inc. (A)			34		359
Auto Parts & Equipment - 1.2%
Westport Innovations Inc. (A)			33		588
Biotechnology - 4.6%
Allos Therapeutics, Inc. (A)			92		435
Dyax Corp. (A)			72		170
Idenix Pharmaceuticals, Inc. (A)			57		178
Nanosphere, Inc. (A)			57		286
NuPathe Inc. (A)			42		304
Pharmasset, Inc. (A)			30		878
					2,251
Broadcasting - 0.7%
Global Traffic Network, Inc. (A)			72		362
Commodity Chemicals - 0.7%
STR Holdings, Inc. (A)			15		330
Communications Equipment - 3.4%
Blue Coat Systems, Inc. (A)			20		479
Ixia (A)			40		490
Meru Networks, Inc. (A)			22		381
Oplink Communications, Inc. (A)			16		311
					1,661
Computer Hardware - 0.5%
Super Micro Computer, Inc. (A)			25		259
Construction & Farm Machinery & Heavy Trucks - 1.4%
Commercial Vehicle Group, Inc. (A)			38		385
Wabash National Corporation (A)			39		316
					701
Data Processing & Outsourced Services - 1.2%
SPS Commerce, Inc. (A)			47		601
Distillers & Vintners - 0.7%
China New Borun Corporation, ADR (A)			28		329
Distributors - 1.4%
DXP Enterprises, Inc. (A)			36		689
Education Services - 3.8%
ChinaCast Education Corporation (A)			75		530
Grand Canyon Education, Inc. (A)			49		1,073
National American University Holdings, Inc.			42		282
					1,885
Electrical Components & Equipment - 0.5%
China Electric Motor, Inc. (A)			54		242
Electronic Components - 0.5%
Universal Display Corporation (A)			11		268
Electronic Equipment & Instruments - 0.7%
FARO Technologies, Inc. (A)			15		334
Electronic Manufacturing Services - 2.6%
Fabrinet (A)			17		266
Maxwell Technologies, Inc. (A)			17		244
Mercury Computer Systems, Inc. (A)			34		412
SMART Modular Technologies (WWH), Inc. (A)			57		346
					1,268
Fertilizers & Agricultural Chemicals - 0.8%
Yongye Biotechnology International, Inc. (A)			59		415
Food Retail - 0.5%
QKL Stores Inc. (A)			49		238
General Merchandise Stores - 1.0%
Gordmans Stores, Inc. (A)			43		491
Health Care Equipment - 3.4%
ABIOMED, Inc. (A)			47		498
Quidel Corporation (A)			32		351
Spectranetics Corporation (The) (A)			109		589
Synovis Life Technologies, Inc. (A)			18		262
					1,700
Health Care Supplies - 1.5%
Rochester Medical Corporation (A)			27		298
Winner Medical Group Inc. (A)			94		441
					739
Health Care Technology - 0.7%
Omnicell, Inc. (A)			26		334
Home Furnishings - 0.9%
Kid Brands, Inc. (A)			53		454
Household Appliances - 0.7%
Deer Consumer Products, Inc. (A)			38		365
Integrated Telecommunication Services - 0.8%
City Telecom Ltd, ADR			31		388
Internet Software & Services - 6.7%
Constant Contact, Inc. (A)			21		450
IntraLinks Holdings, Inc. (A)			68		1,146
KIT digital, Inc. (A)			59		710
Liquidity Services, Inc. (A)			25		395
Terremark Worldwide, Inc. (A)			58		598
					3,299
IT Consulting & Other Services - 0.5%
Camelot Information Systems Inc., ADR (A)			15		271
Life Sciences Tools & Services - 1.0%
Bruker Corporation (A)			35		492
Managed Health Care - 0.7%
Molina Healthcare, Inc. (A)			14		370
Movies & Entertainment - 1.8%
Rentrak Corporation (A)			36		905
Oil & Gas Drilling - 0.7%
Pioneer Drilling Company (A)			54		346
Oil & Gas Equipment & Services - 3.2%
Basic Energy Services, Inc. (A)			43		367
Natural Gas Services Group, Inc. (A)			25		368
T-3 Energy Services, Inc. (A)			33		856
					1,591
Oil & Gas Refining & Marketing - 0.6%
China Integrated Energy, Inc. (A)			41		276
Personal Products - 0.4%
China-Biotics, Inc. (A)			20		219
Pharmaceuticals - 5.8%
Biodel Inc. (A)			36		189
BioMimetic Therapeutics, Inc. (A)			46		520
Obagi Medical Products, Inc. (A)			65		687
Questcor Pharmaceuticals, Inc. (A)			118		1,174
SuperGen, Inc. (A)			126		262
					2,832
Research & Consulting Services - 1.0%
Mistras Group, Inc. (A)			42		489
Restaurants - 3.4%
BJ's Restaurants, Inc. (A)			20		563
California Pizza Kitchen, Inc. (A)			18		300
Country Style Cooking Restaurant Chain Co., Ltd.,ADR (A)			9		263
McCormick & Schmick's Seafood Restaurants, Inc. (A)			25		193
Red Robin Gourmet Burgers, Inc. (A)			18		353
					1,672
Semiconductor Equipment - 1.2%
Nanometrics Incorporated (A)			38		573
Semiconductors - 4.4%
Alpha and Omega Semiconductor Limited (A)			11		128
Cavium Networks, Inc. (A)			15		437
Diodes Incorporated (A)			15		258
Mellanox Technologies, Ltd. (A)			15		297
Monolithic Power Systems, Inc. (A)			20		333
O2Micro International Limited (A)			54		329
Pericom Semiconductor Corporation (A)			44		380
					2,162
Specialty Stores - 0.3%
Build-A-Bear Workshop, Inc. (A)			21		128
Steel - 0.4%
China Gerui Advanced Materials Group Limited (A)			35		201
Systems Software - 6.3%
CommVault Systems, Inc. (A)			48		1,242
Fortinet, Inc. (A)			59		1,482
Radiant Systems, Inc. (A)			24		405
					3,129
Trucking - 4.5%
Celadon Group, Inc. (A)			49		682
Marten Transport, Ltd.			36		837
Roadrunner Transportation Systems, Inc. (A)			35		378
Vitran Corporation Inc., Class A (A)			32		355
					2,252
TOTAL COMMON STOCKS - 93.0%				$	45,895
(Cost: $40,839)
SHORT-TERM SECURITIES - 3.4%	Principal
Master Note
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (B)	$1,684			$	1,684
(Cost: $1,684)
TOTAL INVESTMENT SECURITIES - 96.4%				$	47,579
(Cost: $42,523)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 3.6%					1,758
NET ASSETS - 100.0%				$	49,337

Notes to Schedule of Investments

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

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Mid Cap Growth Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	96.3%
Consumer Discretionary	22.3%
Information Technology	18.3%
Industrials	16.1%
Financials	13.9%
Health Care	11.1%
Energy	7.8%
Consumer Staples	5.5%
Materials	1.3%
Cash and Cash Equivalents	3.7%

Lipper Rankings

Category: Lipper Mid-Cap Growth Funds	Rank	Percentile
1 Year	130/419	31
3 Year	12/377	4
5 Year	29/316	10
10 Year	36/178	21

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Microchip Technology Incorporated	Information Technology
Whole Foods Market, Inc.	Consumer Staples
CB Richard Ellis Group, Inc., Class A	Financials
Fastenal Company	Industrials
NetApp, Inc.	Information Technology
Paychex, Inc.	Information Technology
Discover Financial Services	Financials
BorgWarner Inc.	Consumer Discretionary
Allergan, Inc.	Health Care
Signature Bank	Financials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Mid Cap Growth Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,066.00	1.57%	$	8.16
Class B	$1,000	$1,060.40	2.57%	$	13.29
Class C	$1,000	$1,062.10	2.23%	$	11.55
Class E	$1,000	$1,065.90	1.60%	$	8.26
Class I	$1,000	$1,068.70	1.12%	$	5.79
Class R	$1,000	$1,065.50	1.65%	$	8.57
Class Y	$1,000	$1,067.90	1.25%	$	6.41
Based on 5% Return(2)
Class A	$1,000	$1,017.19	1.57%	$	7.97
Class B	$1,000	$1,012.19	2.57%	$	12.98
Class C	$1,000	$1,013.90	2.23%	$	11.28
Class E	$1,000	$1,017.04	1.60%	$	8.07
Class I	$1,000	$1,019.46	1.12%	$	5.65
Class R	$1,000	$1,016.78	1.65%	$	8.37
Class Y	$1,000	$1,018.83	1.25%	$	6.26

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Mid Cap Growth Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Advertising - 1.1%
Focus Media Holding Limited, ADR (A)		169	$	4,105
Air Freight & Logistics - 3.3%
C.H. Robinson Worldwide, Inc.		68		4,780
Expeditors International of Washington, Inc.		158		7,290
				12,070
Apparel Retail - 3.3%
J. Crew Group, Inc. (A)		159		5,351
Urban Outfitters, Inc. (A)		223		7,007
				12,358
Apparel, Accessories & Luxury Goods - 2.9%
Columbia Sportswear Company		62		3,635
lululemon athletica inc. (A)		152		6,776
				10,411
Application Software - 4.8%
salesforce.com, inc. (A)(B)		49		5,529
Solera Holdings, Inc.		141		6,220
SuccessFactors, Inc. (A)		224		5,630
				17,379
Auto Parts & Equipment - 3.2%
BorgWarner Inc. (A)		151		7,964
Gentex Corporation		192		3,742
				11,706
Broadcasting - 1.1%
CBS Corporation, Class B		245		3,883
Computer Storage & Peripherals - 2.6%
NetApp, Inc. (A)		191		9,510
Construction & Engineering - 1.2%
Quanta Services, Inc. (A)		235		4,476
Consumer Finance - 2.4%
Discover Financial Services		515		8,597
Data Processing & Outsourced Services - 2.6%
Paychex, Inc.		341		9,378
Department Stores - 1.0%
Nordstrom, Inc.		100		3,714
Distillers & Vintners - 1.6%
Brown-Forman Corporation, Class B		97		5,987
Electrical Components & Equipment - 2.1%
Cooper Industries, Ltd., Class A		72		3,535
Roper Industries, Inc.		62		4,061
				7,596
Environmental & Facilities Services - 1.2%
Stericycle, Inc. (A)		63		4,409
Food Retail - 2.9%
Whole Foods Market, Inc. (A)		277		10,288
Health Care Distributors - 1.6%
Henry Schein, Inc. (A)		97		5,700
Health Care Equipment - 4.8%
Hospira, Inc. (A)		120		6,841
IDEXX Laboratories, Inc. (A)		59		3,611
Intuitive Surgical, Inc. (A)		12		3,405
Varian Medical Systems, Inc. (A)		61		3,660
				17,517
Health Care Services - 0.4%
Accretive Health, Inc. (A)		133		1,435
Health Care Technology - 1.6%
Cerner Corporation (A)		71		5,967
Homefurnishing Retail - 0.8%
Williams-Sonoma, Inc.		90		2,851
Hotels, Resorts & Cruise Lines - 2.2%
Royal Caribbean Cruises Ltd. (A)		97		3,063
Starwood Hotels & Resorts Worldwide, Inc.		95		4,971
				8,034
Human Resource & Employment Services - 1.5%
Manpower Inc.		106		5,520
Industrial Machinery - 4.0%
Donaldson Company, Inc.		85		4,004
Gardner Denver, Inc.		3		172
IDEX Corporation		166		5,889
Kaydon Corporation		119		4,123
				14,188
Insurance Brokers - 1.9%
Arthur J. Gallagher & Co.		269		7,086
Internet Retail - 0.5%
Netflix, Inc. (A)		11		1,792
Internet Software & Services - 1.1%
DealerTrack Holdings, Inc. (A)		229		3,910
Investment Banking & Brokerage - 1.9%
Greenhill & Co., Inc.		89		7,091
Life Sciences Tools & Services - 0.5%
TECHNE Corporation		29		1,793
Oil & Gas Drilling - 1.5%
Patterson-UTI Energy, Inc.		326		5,568
Oil & Gas Equipment & Services - 1.9%
Dresser-Rand Group Inc. (A)		186		6,850
Oil & Gas Exploration & Production - 4.4%
Continental Resources, Inc. (A)		78		3,616
Noble Energy, Inc.		77		5,771
Ultra Petroleum Corp. (A)		158		6,635
				16,022
Personal Products - 1.0%
Mead Johnson Nutrition Company		65		3,685
Pharmaceuticals - 2.2%
Allergan, Inc.		118		7,874
Publishing - 2.0%
Meredith Corporation		219		7,303
Real Estate Management & Development - 2.7%
CB Richard Ellis Group, Inc., Class A (A)		539		9,850
Regional Banks - 4.0%
Signature Bank (A)		201		7,805
TCF Financial Corporation		417		6,745
				14,550
Restaurants - 2.2%
Chipotle Mexican Grill, Inc., Class A (A)		34		5,865
P.F. Chang's China Bistro, Inc.		47		2,158
				8,023
Semiconductor Equipment - 1.6%
Lam Research Corporation (A)		142		5,947
Semiconductors - 5.6%
Linear Technology Corporation		175		5,376
Microchip Technology Incorporated		351		11,030
Semtech Corporation (A)		195		3,937
				20,343
Specialized Finance - 1.0%
CME Group Inc.		13		3,490
Specialty Chemicals - 1.3%
RPM International Inc.		243		4,836
Specialty Stores - 2.0%
PetSmart, Inc.		204		7,124
Trading Companies & Distributors - 2.6%
Fastenal Company		179		9,534
Trucking - 0.2%
Knight Transportation, Inc.		35		683
TOTAL COMMON STOCKS - 96.3%			$	350,433
(Cost: $287,298)

SHORT-TERM SECURITIES	Principal
Commercial Paper (C) - 1.9%
McCormick & Co. Inc.,
0.000%, 10-1-10	$3,097		3,097
Nokia Corp.,
0.210%, 10-14-10	4,000		4,000
			7,097
Master Note - 0.3%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (D)	995		995
TOTAL SHORT-TERM SECURITIES - 2.2%		$	8,092
(Cost: $8,092)
TOTAL INVESTMENT SECURITIES - 98.5%		$	358,525
(Cost: $295,390)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.5%			5,485
NET ASSETS - 100.0%		$	364,010

Notes to Schedule of Investments

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

(B)Securities serve as cover or collateral for the following written options outstanding at September 30, 2010:

Underlying Security	Counterparty	Contracts Subject to Call		Expiration Month	Exercise Price	Premium Received			Market Value
salesforce.com, inc.	Goldman, Sachs & Company	––	*	November 2010	$135.00		$	57	$ (37)
Whole Foods Market, Inc.	UBS Securities LLC	2		November 2010	43.00			96	(67)
							$	153	$(104)

*Not shown due to rounding.

(C)Rate shown is the yield to maturity at September 30, 2010.

(D)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Money Market Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Corporate Obligations	60.8%
Commercial Paper	36.6%
Notes	14.5%
Commercial Paper (backed by irrevocable bank letter of credit)	7.5%
Notes (backed by irrevocable bank letter of credit)	2.2%
Municipal Obligations	35.7%
United States Government and Government Agency Obligations	3.3%
Cash and Other Assets, Net of Liabilities	0.2%

ILLUSTRATION OF FUND EXPENSES

Ivy Money Market Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,000.10	0.48%	$2.40
Class B**	$1,000	$1,000.10	0.48%	$2.40
Class C**	$1,000	$1,000.10	0.48%	$2.40
Class E	$1,000	$1,000.10	0.48%	$2.40
Based on 5% Return(2)
Class A	$1,000	$1,022.64	0.48%	$2.43
Class B**	$1,000	$1,022.65	0.48%	$2.43
Class C**	$1,000	$1,022.67	0.48%	$2.43
Class E	$1,000	$1,022.65	0.48%	$2.43

*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, 2010, and divided by 365.

**These shares are not available for direct investments. However, they are available by exchange from Class B or Class C shares of another Ivy Fund.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Money Market Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

CORPORATE OBLIGATIONS	Principal			Value
Commercial Paper (A)
American Honda Finance Corp.:
0.180%, 10-6-10			$ 5,000	$	5,000
0.230%, 11-22-10			4,500		4,498
Corporacion Andina de Fomento:
0.860%, 10-5-10			2,800		2,800
0.480%, 10-15-10			2,700		2,699
0.190%, 10-28-10			5,500		5,499
Hewlett-Packard Company,
0.150%, 10-4-10			1,954		1,954
Honeywell International Inc.,
0.590%, 12-27-10			1,000		999
John Deere Credit Limited (John Deere Capital Corporation):
0.210%, 10-20-10			3,000		3,000
0.210%, 10-28-10			3,000		2,999
Nokia Corp.:
0.220%, 10-12-10			7,000		6,999
0.220%, 10-13-10			3,000		3,000
0.210%, 10-14-10			1,800		1,800
Novartis Securities Investment Ltd.,
0.000%, 10-1-10			3,500		3,500
PACCAR Financial Corp.,
0.270%, 12-2-10			3,500		3,498
Panasonic Finance America, Inc.:
0.190%, 10-4-10			1,700		1,700
0.390%, 11-9-10			1,034		1,034
0.400%, 1-13-11			3,000		2,996
0.430%, 2-14-11			5,500		5,491
Prudential Funding LLC,
0.000%, 10-1-10			5,000		5,000
Sonoco Products Co.,
0.000%, 10-1-10			1,000		1,000
Straight-A Funding, LLC (Federal Financing Bank):
0.200%, 10-13-10			2,200		2,200
0.210%, 11-5-10			6,900		6,899
0.250%, 12-7-10			1,283		1,282
0.250%, 12-13-10			4,000		3,998
Wisconsin Electric Power Co.,
0.000%, 10-1-10			8,304		8,304
Total Commercial Paper - 36.6%					88,149
Commercial Paper (backed by irrevocable bank letter of credit) (A)
COFCO Capital Corp. (Rabobank Nederland),
0.280%, 10-20-10		11,890			11,888
River Fuel Company #2, Inc. (Bank of New York (The)),
0.340%, 10-29-10			4,000		3,999
River Fuel Funding Company #3, Inc. (Bank of New York (The)),
0.280%, 10-29-10			1,441		1,440
River Fuel Trust #1 (Bank of New York (The)),
0.340%, 10-29-10			743		743
Total Commercial Paper (backed by irrevocable bank letter of credit) - 7.5%					18,070
Notes
3M Company,
5.610%, 12-12-10		5,000			5,052
Bank of America, N.A.,
0.763%, 10-22-10 (B)			4,900		4,900
BellSouth Corporation,
4.295%, 4-26-11 (C)			2,200		2,242
Citigroup Inc.:
0.452%, 11-18-10 (B)			2,516		2,510
6.500%, 1-18-11			2,680		2,715
5.100%, 9-29-11			2,650		2,757
Countrywide Home Loans Inc. (Bank of America),
4.000%, 3-22-11			1,500		1,524
IBM International Group Capital LLC (International Business Machines Corporation),
0.568%, 11-26-10 (B)			1,500		1,500
Rabobank Nederland,
0.446%, 11-16-10 (B)			1,500		1,500
Royal Bank of Scotland plc (The),
1.006%, 10-28-10 (B)			9,000		9,000
Washington Mutual Finance Corp. (Citigroup),
6.875%, 5-15-11			1,160		1,202
Total Notes - 14.5%					34,902
Notes (backed by irrevocable bank letter of credit)
Conestoga Wood Specialties Corp, Var Rate Demand Rev Bonds,       Ser 2000 (Wachovia Bank, N.A.),
0.330%, 10-1-10 (B)			1,405		1,405
The Academy of the New Church, Taxable Var Rate Demand Bonds,       Ser 2008 (Wachovia Bank, N.A.),
0.280%, 10-1-10 (B)			2,200		2,200
Trap Rock Industries, Inc., Taxable Var Demand Bonds,       Ser 2005 (Wachovia Bank, N.A.),
0.280%, 10-1-10 (B)			1,725		1,725
Total Notes (backed by irrevocable bank letter of credit) - 2.2%					5,330
TOTAL CORPORATE OBLIGATIONS - 60.8%				$	146,451
(Cost: $146,451)
MUNICIPAL OBLIGATIONS
California - 4.0%
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist       Hlth Sys/West), Ser 1998B (Bank of America, N.A),
0.290%, 10-1-10 (B)			2,115		2,115
CA Pollutn Ctl Fin Auth, Pollutn Ctl Rfdg Rev Bonds (Pacific Gas       and Elec Co), Ser C (JPMorgan Chase Bank, N.A),
0.290%, 10-1-10 (B)			5,500		5,500
Cnty of Santa Clara, Teeter Plan Oblig, Commercial Paper       Notes, Ser A,
0.260%, 10-6-10			2,000		2,000
					9,615

Colorado - 1.9%
Castle Rock, CO, Var Rate Cert of Participation, Ser 2008       (Wells Fargo Bank, N.A.),
0.300%, 10-1-10 (B)	4,070			4,070
Exempla General Impvt Dist of Lafayette, CO, Spl Impvt Dist       No. 02-01, Spl Assmt Var Rate Rev Rfdg and Impvt Bonds,       Ser 2002 (Wells Fargo Bank, N.A.),
0.270%, 10-1-10 (B)		475		475
				4,545
Florida - 3.7%
Cape Coral, FL (Bank of America, N.A.),
0.320%, 11-1-10		3,000		3,000
FL Muni Power Agy, All-Requirements Power Supply Proj Var       Rate Demand Rfdg Rev Bonds, Ser 2008C (Bank of America, N.A.),
0.310%, 10-1-10 (B)		2,000		2,000
Pinellas Cnty Edu Fac Auth, Rfdg Prog Rev Bonds (Pooled       Independent High Edu Institutions Loan Proj), Ser 1985 (Wachovia       Bank, N.A.),
0.320%, 11-15-10		3,900		3,900
				8,900
Georgia - 2.6%
Muni Elec Auth of GA:
0.310%, 10-12-10		2,400		2,400
0.340%, 11-1-10		3,900		3,900
				6,300
Illinois - 3.2%
Chicago GO Tender Notes, Taxable Ser 2009 (U.S. Bank, N.A.),
0.640%, 12-15-10		4,970		4,970
IL Fin Auth (Loyola Univ of Chicago Fin Prog), Commercial       Paper Rev Notes,
0.280%, 12-1-10		2,000		2,000
IL Fin Auth, Var Rate Demand Rev Bonds (The Carle Fndtn), Ser       2009 (JPMorgan Chase Bank, N.A.),
0.250%, 10-1-10 (B)		700		700
				7,670
Indiana - 2.1%
IN Fin Auth, Hlth Sys Rev Bonds (Sisters of St. Francis Hlth       Svcs, Inc. Obligated Group), Ser 2009H (JPMorgan Chase       Bank, N.A.),
0.260%, 10-1-10 (B)		5,000		5,000
Louisiana - 3.1%
LA Pub Fac Auth, Var Rate Rev Bonds (Air Products and       Chemicals Proj), Ser 2009A (Bank of New York Mellon Trust       Company, N.A. (The)),
0.500%, 10-1-10 (B)		1,100		1,100
LA Pub Fac Auth, Var Rate Rev Rfdg Bonds (CHRISTUS Hlth),       Ser 2009B-1 (Bank of New York (The)),
0.240%, 10-6-10 (B)		2,000		2,000
Parish of St. Bernard, LA, Exempt Fac Var Rate Rev Bonds       (Mobil Oil Corp Proj), Ser 1996 (Exxon Mobil Corporation),
0.250%, 10-1-10 (B)		4,500		4,500
				7,600
Maryland - 0.8%
MD Hlth and Higher Edu Fac Auth Rev Bonds, Anne Arundel Hlth       Sys Issue, Ser 2009A (Wachovia Bank, N.A.),
0.280%, 10-1-10 (B)		1,985		1,985
Mississippi - 4.3%
MS Bus Fin Corp, Adj Mode Indl Dev Rev Bonds (Belk, Inc. Proj),       Ser 2005 (Wachovia Bank, N.A.),
0.280%, 10-1-10 (B)		4,925		4,925
MS Bus Fin Corp, Gulf Opp Zone Indl Dev Var Rate Rev Bonds       (Chevron U.S.A. Inc. Proj), Ser 2007D (Chevron Corporation),
0.270%, 10-1-10 (B)		5,500		5,500
				10,425
Missouri - 0.4%
Kansas City, MO, Var Rate Demand Taxable Spl Oblig Rfdg       Bonds (President Hotel Redev Proj), Ser 2009B (JPMorgan       Chase & Co.),
0.350%, 10-1-10 (B)		975		975
New York - 5.3%
NY Hsng Fin Agy, Related-Caroline Apartments Hsng Rev Bonds,       Ser 2008A (Federal Home Loan Mortgage Corporation),
0.280%, 10-1-10 (B)		2,000		2,000
NY State Hsng Fin Agy, Archstone Westbury Hsng Var Rate Rev       Bonds, Ser A (Bank of America, N.A.),
0.270%, 10-1-10 (B)		6,700		6,700
NYC Indl Dev Agy, Var Rate Demand Civid Fac Rfdg and Impvt       Rev Bonds (Touro College Proj), Ser 2007 (JPMorgan Chase       Bank, N.A.),
0.250%, 10-1-10 (B)		4,000		4,000
				12,700
Texas - 1.3%
Harris Cnty Hosp Dist, Sr Lien Rfdg Var Rate Rev Bonds, Ser 2010,
0.270%, 10-1-10 (B)		2,000		2,000
Port Arthur Navigation Dist Indl Dev Corp, Exempt Fac Var Rate       Rev Bonds (Air Products Proj), Ser 2005 (Air Products and       Chemicals, Inc.),
0.460%, 10-1-10 (B)		1,100		1,100
				3,100
Wisconsin - 1.8%
Ladysmith, WI, Var Rate Demand Indl Dev Rev Bonds (Indeck       Ladysmith, LLC Proj), Ser 2009A (Wells Fargo Bank, N.A.),
0.330%, 10-1-10 (B)		3,500		3,500
WI Hlth and Edu Fac Auth, Var Rate Demand Rev Bonds       (Wausau Hosp, Inc.), Ser 1998B (JPMorgan Chase Bank, N.A.),
0.280%, 10-1-10 (B)		770		770
				4,270
Wyoming - 1.2%
Uinta Cnty, WY, Pollutn Ctl Rfdg Rev Bds (Chevron U.S.A. Inc.       Proj), Ser 1992 (Chevron Corporation),
0.270%, 10-1-10 (B)		3,000		3,000
TOTAL MUNICIPAL OBLIGATIONS - 35.7%			$	86,085
(Cost: $86,085)

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
United States Government Agency Obligations
Defeased Loan Trust 2010-2,
1.040%, 8-13-11	2,171		2,171
Overseas Private Investment Corporation:
0.240%, 11-15-10 (B)	2,000		2,000
0.240%, 12-15-10 (B)	1,895		1,895
Totem Ocean Trailer Express, Inc. (United States Government Guaranteed       Ship Financing Obligations),
0.542%, 10-15-10 (B)	1,888		1,888
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 3.3%		$	7,954
(Cost: $7,954)
TOTAL INVESTMENT SECURITIES - 99.8%		$	240,490
(Cost: $240,490)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.2%			447
NET ASSETS - 100.0%		$	240,937

Notes to Schedule of Investments

(A)Rate shown is the yield to maturity at September 30, 2010.

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

(C)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010.

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Mortgage Securities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Bonds	95.0%
United States Government and             Government Agency Obligations	73.4%
Corporate Debt Securities	21.6%
Cash and Cash Equivalents	5.0%

Lipper Rankings

Category: Lipper U.S. Mortgage Funds	Rank	Percentile
1 Year	30/98	31
3 Year	83/87	95
5 Year	76/79	95
10 Year	56/58	95

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

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.

Quality Weightings

Investment Grade	87.8%
AAA	79.5%
AA	3.2%
A	3.8%
BBB	1.3%
Non-Investment Grade	7.2%
BB	1.4%
B	0.8%
CCC	1.7%
Below CCC	1.1%
Non-rated	2.2%
Cash and Cash Equivalents	5.0%

Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's.

ILLUSTRATION OF FUND EXPENSES

Ivy Mortgage Securities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,039.60	1.37%	$	7.04
Class B	$1,000	$1,034.20	2.40%	$	12.21
Class C	$1,000	$1,035.90	2.05%	$	10.48
Class E	$1,000	$1,040.70	1.14%	$	5.82
Class I	$1,000	$1,042.20	0.85%	$	4.29
Class Y	$1,000	$1,040.80	1.12%	$	5.71
Based on 5% Return(2)
Class A	$1,000	$1,018.21	1.37%	$	6.96
Class B	$1,000	$1,013.02	2.40%	$	12.08
Class C	$1,000	$1,014.77	2.05%	$	10.38
Class E	$1,000	$1,019.37	1.14%	$	5.76
Class I	$1,000	$1,020.82	0.85%	$	4.24
Class Y	$1,000	$1,019.44	1.12%	$	5.65

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Mortgage Securities Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

CORPORATE DEBT SECURITIES	Principal				Value
Asset-Backed Security - 4.0%
BankAmerica Manufactured Housing Contract Trust:
7.800%, 10-10-26		$	441		$	446
7.015%, 1-10-28			7			7
CountryPlace Manufactured Housing Contract Trust 2005-1,
4.800%, 12-15-35 (A)(B)			1,275			1,131
Ford Credit Auto Owner Trust 2007-A,
7.050%, 12-15-13 (A)			390			412
Green Tree Financial Corporation,
8.300%, 11-15-19			176			179
Origen Manufactured Housing Contract Trust 2004-A,
5.700%, 1-15-35			643			694
Origen Manufactured Housing Contract Trust 2004-B,
4.750%, 8-15-21			533			538
Origen Manufactured Housing Contract Trust 2005-B:
5.605%, 5-15-22			360			373
5.910%, 1-15-37			700			743
						4,523
CMBS Other - 4.3%
Carey Commercial Mortgage Trust Series 2002-1,
5.970%, 9-20-19 (C)			122			124
Commercial Mortgage Asset Trust,
7.800%, 11-17-32 (B)			1,000			1,140
Commercial Mortgage Asset Trust, Commercial Mortgage Pass-Through       Certificates, Series 1999-C1,
6.640%, 1-17-32			100			100
GMAC Commercial Mortgage Securities,
5.940%, 7-1-13 (A)			17			12
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38 (A)			1,898			863
J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial       Mortgage Pass-Through Certificates, Series 2005-LDP2,
4.625%, 3-15-46			104			106
Merrill Lynch Mortgage Trust, Commercial Mortgage Pass-Through       Certificates, Series 2003-Key1,
4.893%, 11-12-35			500			509
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4:
5.880%, 11-28-35 (A)(B)			340			81
5.880%, 11-28-35 (A)(B)			680			39
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities       Pass-Through Certificates, Series 2005-RR4 (Interest Only),
1.150%, 11-28-35 (A)(B)(D)			9,312			130
Multi Security Asset Trust, Commercial Mortgage Pass-Through       Certificates, Series 2005-RR4,
5.000%, 11-28-35 (A)			2,000			1,715
						4,819
Other Mortgage-Backed Securities - 12.9%
Aames Mortgage Trust 2001-4,
6.650%, 1-25-32 (B)			386			219
ABFS Mortgage Loan Trust 2001-2,
7.490%, 12-25-31 (B)			712			369
Asset Securitization Corporation (Interest Only):
1.458%, 10-13-26 (B)(C)(D)		2,824				31
8.621%, 8-13-29 (B)(D)			788			97
Banc of America Alternative Loan Trust 2005-6,
6.000%, 7-25-35			670			437
Banc of America Alternative Loan Trust 2006-4,
6.201%, 5-25-46 (B)			553			4
Banc of America Mortgage 2007-1 Trust,
6.000%, 3-25-37			3,459			374
Banc of America Mortgage Alternative Loan Trust 2003-5,
5.500%, 7-25-33			1,125			205
Banc of America Mortgage Trust 2003-9,
5.500%, 12-25-33			673			330
Banc of America Mortgage Trust 2004-2,
5.000%, 3-25-19			214			140
Banc of America Mortgage Trust 2004-3:
4.875%, 4-25-19			278			186
4.875%, 4-25-19			149			79
Banc of America Structured Securities Trust 2002-X1 F,
6.274%, 10-11-33 (A)			1,750			1,747
BlackRock Capital Finance,
7.750%, 9-25-26 (C)			445			89
C-Bass 2005-CB3 Trust,
5.109%, 5-25-35 (B)			49			49
C-Bass 2006-MH1 Trust,
5.970%, 10-25-36 (B)(C)			1,243			1,266
Collateralized Mortgage Obligation Trust,
5.000%, 7-1-18			18			18
First Horizon Mortgage Pass-Through Trust 2003-8,
5.137%, 10-25-33 (B)			285			127
First Horizon Mortgage Pass-Through Trust 2007-4,
5.500%, 8-25-22			560			419
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage       Securitization 2005-A LLC:
5.250%, 4-25-32			599			459
5.401%, 4-25-32 (B)			931			406
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC:
5.250%, 11-25-32 (A)			788			615
5.250%, 11-25-32 (A)			368			294
Impac CMB Trust Series 2003-2F,
6.500%, 1-25-33 (B)			470			215
J.P. Morgan Mortgage Trust 2004-A3,
4.283%, 7-25-34 (B)			516			389
J.P. Morgan Mortgage Trust 2006-A2:
3.284%, 11-25-33 (B)			539			407
3.128%, 8-25-34 (B)			1,978			417
J.P. Morgan Mortgage Trust 2006-S3,
6.187%, 8-25-36			702			––	*
J.P. Morgan Mortgage Trust 2007-A1,
3.776%, 7-25-35 (B)			2,113			86
Mid-State Capital Corporation 2004-1 Trust:
6.005%, 8-15-37			309			321
6.497%, 8-15-37			972			946
Morgan Stanley Capital I Trust 2004-TOP15,
4.690%, 6-13-41			179			179
Morgan Stanley Dean Witter Capital I Inc. Trust 2002-WL1,
6.490%, 7-25-17 (B)			140			126
Prudential Home Mortgage Securities:
6.730%, 4-28-24 (A)(B)			1			1
7.855%, 9-28-24 (B)(C)			6			4
RAMP Series 2005-RS1 Trust,
5.145%, 1-25-35 (B)			1,013			375
RASC Series 2003-KS10 Trust,
6.410%, 12-25-33			212			47
RESI Finance Limited Partnership 2003-C and RESI Finance DE       Corporation 2003-C,
1.657%, 9-10-35 (A)(B)			660			464
RFMSI Series 2004-S5 Trust:
4.500%, 5-25-19			239			194
4.500%, 5-25-19			119			89
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through       Certificates, Series 1997-HUD1,
7.750%, 12-25-30 (B)			868			112
Structured Asset Mortgage Investments, Inc.:
4.833%, 4-30-30 (B)			11			7
4.833%, 4-30-30 (B)			5			3
Structured Asset Securities Corporation:
6.290%, 11-25-32 (B)			221			155
5.250%, 8-25-33			442			232
6.000%, 6-25-34 (B)			2,019			776
Washington Mutual MSC Mortgage Pass-Through Certificates       Series 2002-MS11 Trust,
5.630%, 12-25-32 (B)			682			453
Wells Fargo Alternative Loan 2007-PA3 Trust,
5.750%, 7-25-37			1,036			126
Wells Fargo Mortgage Backed Securities 2003-2 Trust,
5.250%, 2-25-18 (A)			153			109
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.250%, 8-25-33 (C)			886			429
						14,622
Other Non-Agency REMIC/CMO - 0.4%
Banco Hipotecario Nacional:
7.916%, 7-25-09 (A)			23			––	*
0.000%, 3-25-11 (A)(E)			10			––	*
7.540%, 5-31-17 (A)			––	*		––
Bear Stearns Mortgage Securities Inc.,
8.000%, 11-25-29			270			258
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21,
5.400%, 11-25-35 (B)			1,575			237
						495
TOTAL CORPORATE DEBT SECURITIES - 21.6%					$	24,459
(Cost: $45,784)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations - 0.8%
Federal National Mortgage Association:
4.750%, 12-15-10 (F)			400			404
5.500%, 2-1-35			438			469
						873

Mortgage-Backed Obligations - 72.1%
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
5.500%, 12-1-17		363		395
5.500%, 9-1-19		537		581
3.342%, 12-25-19		992		1,046
5.000%, 4-1-23		2,037		2,161
5.000%, 5-1-29		308		325
5.300%, 1-15-33		206		224
5.500%, 5-1-34		857		930
5.500%, 5-1-34		526		571
6.500%, 5-1-34		426		471
5.000%, 10-1-34 TBA		745		783
5.500%, 10-1-34		610		656
5.000%, 8-1-35		566		598
5.000%, 12-1-35		417		440
6.500%, 7-1-36		505		555
4.500%, 10-1-37		5,800		6,028
7.000%, 12-1-37		385		429
5.500%, 2-1-39		1,801		1,920
5.000%, 11-1-39		476		508
5.000%, 1-1-40		2,842		2,988
5.000%, 3-1-40		475		507
5.000%, 4-1-40		985		1,036
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.000%, 1-1-18		190		206
5.500%, 2-1-18		218		239
5.000%, 5-1-18		727		786
5.000%, 10-1-18		668		712
5.500%, 9-1-19		165		179
4.500%, 10-1-19 TBA		1,500		1,578
6.000%, 8-1-23		722		785
4.000%, 10-1-23 TBA		500		522
5.500%, 2-1-24		287		309
4.500%, 4-1-25		933		982
6.000%, 8-1-29		226		249
7.000%, 11-1-31		132		151
6.500%, 2-1-32		118		132
6.500%, 2-1-32		89		99
6.500%, 2-1-32		77		87
7.000%, 2-1-32		152		172
7.000%, 3-1-32		227		258
6.500%, 4-1-32		45		51
6.500%, 5-1-32		88		98
6.500%, 5-1-32		55		62
6.000%, 9-1-32		96		106
6.500%, 9-1-32		50		56
6.000%, 10-1-32		642		707
6.000%, 10-1-32		601		667
6.500%, 10-1-32		44		49
6.000%, 11-1-32		483		532
6.000%, 11-1-32		298		329
6.000%, 3-1-33		729		806
6.000%, 3-1-33		532		586
6.000%, 3-1-33		178		196
5.500%, 4-1-33		1,109		1,195
5.500%, 4-1-33		593		638
5.500%, 5-1-33		704		756
5.500%, 5-1-33		277		298
5.500%, 5-1-33		189		203
6.000%, 6-1-33		1,157		1,269
6.000%, 6-1-33		363		399
6.500%, 8-1-33		35		39
6.000%, 10-1-33		194		215
6.000%, 12-1-33		320		355
5.500%, 1-1-34		496		532
5.500%, 1-1-34		392		422
5.000%, 3-1-34		210		222
5.500%, 4-1-34		338		363
5.000%, 5-1-34		114		121
6.000%, 8-1-34		426		465
5.500%, 9-1-34		764		828
6.000%, 9-1-34		439		479
6.500%, 9-1-34		598		663
4.500%, 10-1-34 TBA		3,500		3,643
5.000%, 10-1-34 TBA		1,700		1,790
5.500%, 10-1-34 TBA		1,000		1,063
5.500%, 11-1-34		413		445
6.000%, 11-1-34		177		194
6.500%, 11-1-34		37		41
5.000%, 12-1-34		779		827
5.500%, 1-1-35		774		834
5.500%, 1-1-35		280		302
5.500%, 2-1-35		1,684		1,841
6.500%, 3-1-35		654		730
5.000%, 7-1-35		1,640		1,738
5.000%, 7-1-35		461		488
5.000%, 7-1-35		414		440
5.500%, 7-1-35		422		454
5.500%, 10-1-35		619		675
5.500%, 11-1-35		351		375
5.500%, 11-1-35		343		367
5.500%, 2-1-36		984		1,044
6.500%, 2-1-36		466		516
6.500%, 6-1-36		663		727
5.500%, 9-1-36		1,200		1,288
5.500%, 11-1-36		759		809
6.000%, 11-1-36		493		533
6.000%, 1-1-37		342		371
6.000%, 5-1-37		610		668
5.500%, 6-1-37		194		212
6.000%, 9-1-37		65		71
7.000%, 10-1-37		50		56
7.000%, 10-1-37		36		40
5.500%, 3-1-38		169		184
5.500%, 5-1-38		230		245
6.000%, 10-1-38		888		959
5.000%, 3-1-40		976		1,035
Government National Mortgage Association Agency REMIC/CMO (Interest       Only): (D)
0.525%, 3-16-34 (B)		5,094		103
0.643%, 7-16-40 (B)		2,330		50
0.012%, 3-16-42 (B)	6,468 14,983			6
0.728%, 6-17-45 (B)				449
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
6.250%, 7-15-24		148		166
5.000%, 7-15-33		638		684
2.629%, 9-16-33		994		1,030
5.000%, 7-15-34		549		588
5.000%, 10-1-34 TBA		1,040		1,107
5.500%, 12-15-34		466		503
5.500%, 12-15-34		335		362
5.000%, 1-15-35		993		1,063
5.000%, 12-15-35		1,232		1,319
4.500%, 10-1-38 TBA		2,000		2,105
5.000%, 12-15-39		302		325
5.000%, 1-15-40		1,958		2,095
United States Department of Veterans Affairs, Guaranteed REMIC       Pass-Through Certificates, Vendee Mortgage Trust, 1995-1 Class 1,
7.214%, 2-15-25 (B)		168		192
United States Department of Veterans Affairs, Guaranteed REMIC       Pass-Through Certificates, Vendee Mortgage Trust, 1995-1 Class 2,
7.793%, 2-15-25		49		58
				81,515
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 72.9%			$	82,388
(Cost: $81,001)
UNITED STATES GOVERNMENT OBLIGATIONS - 0.5%
Treasury Obligations
United States Treasury Notes,
4.500%, 3-31-12 (F)		500	$	531
(Cost: $507)
SHORT-TERM SECURITIES
Commercial Paper (G) - 11.6%
Clorox Co.,
0.350%, 10-18-10		5,000		4,999
CVS Caremark Corporation,
0.320%, 10-13-10		4,000		4,000
IBM International Group Capital LLC (International Business Machines       Corporation),
0.000%, 10-1-10		1,144		1,144
Kellogg Co.,
0.240%, 10-5-10		3,000		3,000
				13,143
Master Note - 3.9%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (H)		4,405		4,405
Municipal Obligations - Taxable - 5.8%
NYC GO Bonds, Fiscal 2006 Ser E (Bank of America, N.A.),
0.270%, 10-1-10 (H)		6,525		6,525
TOTAL SHORT-TERM SECURITIES - 21.3%			$	24,073
(Cost: $24,073)

TOTAL INVESTMENT SECURITIES - 116.3%	$	131,451
(Cost: $151,365)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (16.3%)		(18,445	)
NET ASSETS - 100.0%	$	113,006

Notes to Schedule of Investments

*Not shown due to rounding.

(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $7,613 or 6.7% of net assets.

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010.

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $1,943 or 1.7% of net assets.

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

(E)Zero coupon bond.

(F)Securities serve as collateral for the following open futures contracts at September 30, 2010:

Description	Type	Expiration Date	Number of Contracts	Market Value			Unrealized Appreciation (Depreciation)
U.S. 30 Year Treasury Bond	Short	12-21-10	––*		$	(1,337)	$ 1
U.S. 10 Year Treasury Note	Short	12-21-10	––*			(7,185)	(102	)
					$	(8,522)	$(101	)

(G)Rate shown is the yield to maturity at September 30, 2010.

(H)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

The following acronyms are used throughout this schedule:
CMBS = Commercial Mortgage-Backed Security
CMO = Collateralized Mortgage Obligation
REMIC = Real Estate Mortgage Investment Conduit
TBA = To Be Announced

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Municipal Bond Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Bonds	92.2%
Municipal Bonds	92.2%
Cash and Cash Equivalents	7.8%

Lipper Rankings

Category: Lipper General Municipal Debt Funds	Rank	Percentile
1 Year	91/250	37
3 Year	91/217	42
5 Year	109/197	56
10 Year	106/159	67

Past performance is no guarantee of future results. Rankings are for Class C shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Quality Weightings

Investment Grade	84.6%
AAA	19.0%
AA	16.2%
A	27.0%
BBB	22.4%
Non-Investment Grade	7.6%
CCC	0.6%
Non-rated	7.0%
Cash and Cash Equivalents	7.8%

Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's.

ILLUSTRATION OF FUND EXPENSES

Ivy Municipal Bond Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,062.60	1.12%	$5.78
Class B	$1,000	$1,058.50	1.90%	$9.88
Class C	$1,000	$1,058.60	1.87%	$9.68
Class I	$1,000	$1,063.70	0.91%	$4.75
Class Y	$1,000	$1,062.60	1.12%	$5.78
Based on 5% Return(2)
Class A	$1,000	$1,019.44	1.12%	$5.65
Class B	$1,000	$1,015.52	1.90%	$9.67
Class C	$1,000	$1,015.69	1.87%	$9.47
Class I	$1,000	$1,020.51	0.91%	$4.65
Class Y	$1,000	$1,019.44	1.12%	$5.65

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Municipal Bond Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

MUNICIPAL BONDS	Principal			Value
Alabama - 2.3%
The Pub Edu Bldg Auth of Tuscaloosa, Student Hsng Rev Bonds (Univ of AL       Ridgecrest Residential Proj), Ser 2008,
6.750%, 7-1-33		$	500	$	582
The Spl Care Fac Fin Auth of Birmingham - Children's Hosp, Hlth Care       Fac Rev Bonds, Children's Hosp, Ser 2009,
6.000%, 6-1-39			750		829
Water Works Board of Birmingham, AL, Water Rev Bonds, Ser 2009-A,
5.125%, 1-1-34			750		809
					2,220
Arizona - 1.4%
Bullhead City, AZ, Bullhead Parkway Impvt Dist, Impvt Bonds,
6.100%, 1-1-13			220		221
Rio Nuevo Multipurp Fac Dist (Tucson, AZ), Sub Lien Excise Tax Rev       Bonds, Ser 2008,
6.625%, 7-15-25			500		591
Univ Med Ctr Corp (Tucson, AZ), Hosp Rev Bonds, Ser 2009,
6.500%, 7-1-39			500		552
					1,364
California - 9.5%
CA Hlth Fac Fin Auth, Rev Bonds (Adventist Hlth Sys/West), Ser 2009A,
5.750%, 9-1-39			500		523
CA Muni Fin Auth, Cmnty Hosp of Cent CA Obligated Group Cert       of Participation,
5.500%, 2-1-39			460		456
CA Pollutn Ctl Fin Auth, Solid Waste Disp Rev Bonds (Republic Svc, Inc.       Proj) Ser 2002B,
5.250%, 6-1-23			415		441
CA Statewide Cmnty Dev Auth, Insd Rev Bonds (Henry Mayo Newhall       Mem Hosp), Ser 2007A,
5.000%, 10-1-37			500		488
Cnty of Sacramento, Arpt Sys Sub and PFC/Grant Rev Bonds, Ser 2009,
5.125%, 7-1-25			500		556
Golden State Tob Securitization Corp, Enhanced Tob Settlement       Asset-Bkd Bonds, Ser 2003B,
5.000%, 6-1-43			1,000		1,113
Golden State Tob Securitization Corp, Tob Settlement Asset-Bkd       Bonds, Ser 2003A-1,
6.750%, 6-1-39			200		232
Los Angeles Unif Sch Dist (Cnty of Los Angeles, CA), GO Bonds,       Election of 2005, Ser 2009 F,
5.000%, 1-1-34			500		527
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Participation,
6.750%, 11-1-39			250		276
Redev Agy for the Cnty of Riverside, Interstate 215 Corridor Redev Proj       Area, 2010 Tax Alloc Bonds, Ser E,
5.250%, 10-1-20			570		588
Riverside Cmnty College Dist, Riverside Cnty, CA, Election of 2004, GO       Bonds, Ser 2004A,
5.500%, 8-1-29			200		235
Southn CA Pub Power Auth, Transmission Proj Rev Bonds (Southn       Transmission Proj), Ser 2008B,
6.000%, 7-1-27			500		594
State of CA, Various Purp GO Bonds:
5.000%, 2-1-22			495		526
5.250%, 10-1-29			500		533
6.000%, 11-1-39			500		559
6.500%, 4-1-33			1,000		1,177
Trustees of the CA State Univ Systemwide Rev Bonds, Ser 2002A,
5.500%, 11-1-15			250		273
Upland Unif Sch Dist (San Bernardino Cnty, CA), Election of 2008 GO       Bonds, Ser A,
0.000%, 8-1-31 (A)			150		46
					9,143
Colorado - 5.4%
City and Cnty of Broomfield, CO, Rfdg Cert of Participation, Ser 2010,
5.000%, 12-1-23 (B)			1,000		1,119
Adams 12 Five Star Sch, Adams and Broomfield Cnty, CO Cert of       Participation, Ser 2008,
5.000%, 12-1-25			500		545
CO Edu and Cultural Fac Auth, Independent Sch Rev Rfdg Bonds       (Vail Mountain Sch Proj), Ser 2010,
6.125%, 5-1-40			475		495
CO Hsng and Fin Auth, Sngl Fam Mtg Class I Bonds, Ser 2009A,
5.500%, 11-1-29			500		531
Denver Hlth and Hosp Auth, Hlthcare Recovery Zone, Fac Rev Bds,       Ser 2010,
5.625%, 12-1-40			500		507
Joint Sch Dist No. 28J, Adams and Arapahoe Counties, CO, GO Bonds,       Ser 2008,
6.000%, 12-1-28			500		589
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt       Bonds, Ser 2008,
6.125%, 12-1-30			500		509
Regional Trans Dist, Private Activity Bonds (Denver Transit Partners       Eagle P3 Proj), Ser 2010,
6.500%, 1-15-30			750		839
					5,134
Connecticut - 0.4%
Capital City Econ Dev Auth, Prkg and Enrg Fee Rev Bonds, Ser 2008D,
5.000%, 6-15-22			370		423
District Of Columbia - 2.2%
DC GO Rfdg Bonds, Ser 2008F,
5.000%, 6-1-19			1,000		1,162
DC Hosp Rev Bonds (Sibley Mem Hosp Issue), Ser 2009,
6.375%, 10-1-39			500		546
Metro WA Arpt Auth, Dulles Toll Road, Second Sr Lien, Rev Bonds,       Ser 2009C,
0.000%, 10-1-41 (A)			500		392
					2,100
Florida - 7.8%
Brevard Cnty Hlth Fac Auth, Hlth Rev Bonds (Hlth First, Inc. Proj), Ser 2009B,
7.000%, 4-1-39			500		567
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009,
6.750%, 11-1-39			500		532
Citizens Ppty Insurance Corp, Sr Secured Rev Bonds, Ser 2010A-1,
5.250%, 6-1-17			400		430
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj       (Univ Cmnty Hosp), Ser 2008A,
5.625%, 8-15-29			555		586
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj       (Univ Cmnty Hosp), Ser 2008B,
8.000%, 8-15-32		600			781
Jacksonville, FL Better Jacksonville Sales Tax Rev Bonds, Ser 2003,
5.250%, 10-1-19			250		263
Miami-Dade Cnty, FL, Aviation Rev Bonds, Miami Intl Arpt (Hub       of the Americas), Ser 2009A,
5.500%, 10-1-36			500		528
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010A,
5.500%, 10-1-41			385		406
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B,
5.000%, 10-1-23			500		538
Miami-Dade Cnty, FL, GO Bonds (Bldg Better Communities Prog),       Ser 2008B,
6.250%, 7-1-26			500		582
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008B,
5.250%, 10-1-22			500		604
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008C,
5.000%, 10-1-17			500		581
Port St. Lucie, FL, Spl Assmt Rfdg Bonds (City Ctr Spl Assmt Dist),       Ser 2008A,
5.750%, 7-1-20			500		576
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmty Proj),       Ser 2010A,
5.875%, 8-1-40			500		517
					7,491
Georgia - 1.2%
Atlanta, GA, Water and Wastewater Rev Bonds, Ser 2009B,
5.375%, 11-1-39			500		532
Muni Elec Auth of GA, Proj One Sub Bonds, Ser 2008D,
5.750%, 1-1-20			500		590
					1,122
Illinois - 1.9%
Belleville, IL, Tax Increment Rfdg Rev Bonds (Frank Scott Parkway       Redev Proj), Ser 2007A:
5.000%, 5-1-26			240		200
5.700%, 5-1-36			250		213
Chicago GO Bonds, Proj and Rfdg, Ser 2004A,
5.250%, 1-1-21			250		274
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009,
6.500%, 4-1-39			500		538
IL Fin Auth, Rev Bonds, The Univ of Chicago, Ser 2008B,
5.500%, 7-1-19			500		613
					1,838
Indiana - 3.6%
Ball State Univ Board of Trustees, Ball State Univ Student Fee Bonds,       Ser K,
5.750%, 7-1-18			500		533
East Chicago Elementary Sch Bldg Corp (Lake Cnty, IN), First Mtg       Bonds, Ser 1993A,
5.500%, 1-15-16			225		226
Hammond IN, Redev Dist Rev Bonds (Marina Area Proj), Ser 2008,
6.000%, 1-15-17			500		522
IN Fin Auth, Fac Rev Rfdg Bonds (Miami Correctional Fac - Phase II),       Ser 2008C,
5.000%, 7-1-17			500		581
IN Hlth and Edu Fac Fin Auth, Hosp Rev Bonds (Cmnty Fndtn of NW IN       Obligated Group), Ser 2007,
5.500%, 3-1-37			250		251
Mt. Vernon Sch Bldg Corp of Hancock Cnty, IN, First Mtg Bonds, Ser 2007,
5.250%, 1-15-32			500		539
New Albany-Floyd Cnty Sch Bldg Corp, First Mtg Bonds, Ser 2002,
5.750%, 7-15-17			675		737
					3,389
Iowa - 1.1%
Altoona, IA Annual Appropriation Urban Renewal Tax Increment Rev       Bonds, Ser 2008,
6.000%, 6-1-34			1,000		1,075
Kansas - 1.1%
Arkansas City, KS Pub Bldg Commission, Rev Bonds (South Cent KS       Regional Med Ctr), Ser 2009,
7.000%, 9-1-38			500		556
Sedgwick Cnty, KS and Shawnee Cnty, KS, Sngl Fam Mtg Rev Bonds       (Mtg-Bkd Sec Prog), Ser 2001A-1,
6.300%, 12-1-32			95		101
Sedgwick Cnty, KS and Shawnee Cnty, KS, Sngl Fam Mtg Rev Bonds       (Mtg-Bkd Sec Prog), Ser 2003A-2,
5.650%, 6-1-35			120		126
Unif Govt of Wyandotte Cnty/Kansas City, KS, Sales Tax Spl Oblig       (Redev Proj Area B - Major Multi-Sport Athletic Complex Proj), Ser 2010B,
0.000%, 6-1-21 (A)			400		225
					1,008
Kentucky - 3.1%
Cmnwlth of KY, State Ppty and Bldg Commission, Rev and Rev Rfdg       Bonds, Proj No. 90,
5.750%, 11-1-19			500		601
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A:
5.500%, 6-1-21			500		543
6.500%, 3-1-45			350		379
Louisville Regional Arpt Auth, Arpt Sys Rev Bonds, Ser 2008A,
5.250%, 7-1-28			500		522
Ohio, KY, Pollutn Ctl Rfdg Rev Bonds (Big Rivers Elec Corp Proj), Ser 2010A,
6.000%, 7-15-31			500		521
Tpk Auth of KY, Econ Dev Road Rev Bonds (Revitalization Proj), Ser 2008A,
5.000%, 7-1-16			330		387
					2,953
Louisiana - 2.3%
Regional Transit Auth (New Orleans, LA), Sales Tax Rev Bonds, Ser 2010,
5.000%, 12-1-22 (B)			1,000		1,106
LA Local Govt Environmental Fac and Cmnty Dev Auth, Hosp Rev       Bonds (Woman's Hosp Fndtn Gulf Opp Zone Proj), Ser 2010B,
6.000%, 10-1-44			500		519
New Orleans Aviation Board, Rev Rfdg Bonds (Restructuring GARBs),       Ser 2009A-1,
6.000%, 1-1-23			500		578
					2,203
Maryland - 1.1%
MD Econ Dev Corp, Pollutn Ctl Rev Rfdg Bonds (Potomac Elec Proj),       Ser 2006,
6.200%, 9-1-22			500		592
MD Trans Auth, Arpt Prkg Rev Bonds (Baltimore/Washington Intl Arpt       Proj), Ser 2002B,
5.375%, 3-1-15			405		428
					1,020
Massachusetts - 1.1%
MA Edu Fin Auth, Edu Loan Rev Bonds, Issue I, Ser 2009,
6.000%, 1-1-28			465		505
MA Port Auth, PFC Rev Rfdg Bonds, Ser 2010-E,
5.000%, 7-1-15			500		553
					1,058
Michigan - 2.8%
Kalamazoo Hosp Fin Auth, Hosp Rev Rfdg Bonds (Bronson Methodist       Hosp), Ser 2003A,
5.000%, 5-15-26			500		521
MI Fin Auth, State Aid Rev Notes (Sch Dist of Detroit), Ser 2010E,
4.750%, 8-22-11			1,000		1,008
MI State Hosp Fin Auth, Hosp Rev and Rfdg Bonds (Henry Ford Hlth       Sys), Ser 2009,
5.750%, 11-15-39			250		259
State Bldg Auth, MI, 2006 Rev Rfdg Bonds (Fac Prog), Ser IA,
0.000%, 10-15-22 (A)			1,000		567
State Bldg Auth, MI, 2008 Rev and Rev Rfdg Bonds (Fac Prog), Ser I,
5.000%, 10-15-18			305		352
					2,707
Minnesota - 0.9%
Perham, MN GO Disp Sys Rev Bonds, Ser 2001,
6.000%, 5-1-22			500		501
Victoria, MN, Private Sch Fac Rev Bonds (Holy Fam Catholic High Sch       Proj), Ser 1999A,
5.600%, 9-1-19			400		385
					886
Mississippi - 0.9%
The Univ of Southn MS, S.M. Edu Bldg Corp, Rev Bonds (Campus Fac       Impvt Proj), Ser 2009,
5.375%, 9-1-36			750		827
Missouri - 4.6%
Belton, MO, Tax Increment Rev Bonds (Belton Town Centre Proj), Ser 2004,
6.250%, 3-1-24			200		197
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax       Rev Bonds, Ser 2006A,
6.125%, 12-1-36			175		120
Hlth and Edu Fac Auth, Hlth Fac Rev Bonds (The Children's Mercy       Hosp), Ser 2009,
5.625%, 5-15-39			500		527
Indl Dev Auth of Grundy Cnty, MO, Hlth Fac Rev Bonds (Wright Mem       Hosp), Ser 2009,
6.750%, 9-1-34			100		104
Indl Dev Auth of Kansas City, MO, Rev Bonds (Plaza Library Proj),       Ser 2004,
5.900%, 3-1-24			200		204
Kearney, MO GO Bonds, Ser 2001,
5.500%, 3-1-16			350		357
MO Dev Fin Board, Infrastructure Fac Rev Bonds (Branson Landing       Proj), Ser 2004A,
5.250%, 12-1-19		65			67
MO Dev Fin Board, Infrastructure Fac Rev Bonds (Independence,       MO - Events Ctr Proj), Ser 2009A,
6.625%, 4-1-33			500		532
Platte Cnty R-III Sch Dist Bldg Corp, Leasehold Rfdg and Impvt Rev       Bonds, Ser 2008,
5.000%, 3-1-28			340		370
Pub Water Supply Dist No. 1 of Lincoln Cnty, MO, Cert of       Participation, Ser 2009,
6.750%, 6-15-35			500		529
The Indl Dev Auth of Moberly, MO, Annual Appropriation Recovery       Zone Fac Bonds (Project Sugar), Ser 2010-C,
6.000%, 9-1-24			500		517
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa       Phase II Retail Proj), Ser 2007,
6.850%, 4-1-29			250		250
The Indl Dev Auth of St. Joseph, MO, Spl Oblig Rev Bonds (St. Joseph       Sewage Sys Impvt Proj), Ser 2007,
4.375%, 4-1-18			100		106
The Indl Dev Auth of the Cnty of St. Louis, MO, Sr Living Fac Rev Bonds       (Friendship Vlg of West Cnty), Ser 2007A,
5.500%, 9-1-28			500		487
					4,367
Nevada - 1.0%
Las Vegas Redev Agy, NV, Tax Increment Rev Bonds, Ser 2009A,
8.000%, 6-15-30			500		591
Overton Power District No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008,
6.500%, 12-1-18			290		337
					928
New Hampshire - 0.8%
NH Hlth and Edu Fac Auth, FHA Insd Mtg Rev Bonds, LRGHlthcare       Issue, Ser 2009,
7.000%, 4-1-38			250		297
NH Hsng Fin Auth, Sngl Fam Mtg Acquisition Rev Bonds, Ser 2008,
6.000%, 7-1-38			475		503
					800
New Jersey - 2.9%
NJ Econ Dev Auth Rev Bonds (Provident Group-Montclair Properties       L.L.C. - Monclair St Univ Student Hsng Proj), Ser 2010A,
5.750%, 6-1-31			750		784
NJ Econ Dev Auth, Sch Fac Constr Bonds, Ser 2005O,
5.125%, 3-1-30			250		266
NJ Hlth Care Fac Fin Auth, Rev Bonds, Virtua Hlth Issue, Ser 2009A,
5.500%, 7-1-38			500		543
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2003B-2,
5.000%, 12-15-16			500		578
Pollutn Ctl Fin Auth Camden Cnty, NJ, Solid Waste Disp and Res       Recovery Sys Rev Bonds, Ser 1991A,
7.500%, 12-1-10			550		547
					2,718
New Mexico - 0.6%
NM Mtg Fin Auth, Sngl Fam Mtg Prog Class I Bonds, Ser 2006D,
6.000%, 1-1-37		75			82
NM Mtg Fin Auth, Sngl Fam Mtg Prog Class I Bonds, Ser 2008D-2,
5.250%, 7-1-30			500		527
					609
New York - 2.6%
NYC Indl Dev Agy, Pilot Rev Bonds (Yankee Stadium Proj), Ser 2009A:
0.000%, 3-1-25 (A)			500		253
0.000%, 3-1-26 (A)			500		240
0.000%, 3-1-27 (A)			500		226
Port Auth of NY and NJ, Consolidated Bonds, One Hundred       Twenty-Seventh Ser,
5.500%, 12-15-14			500		544
Port Auth of NY and NJ, Consolidated Bonds, One Hundred       Fifty-Second Ser,
5.750%, 11-1-30			500		560
Suffolk Cnty Indl Dev Agy, Civic Fac Rev Bonds (The Southampton       Hosp Assoc Civic Fac), Ser 1999A,
7.250%, 1-1-20			110		112
Suffolk Cnty Indl Dev Agy, Civic Fac Rev Bonds (The Southampton       Hosp Assoc Civic Fac), Ser 1999B,
7.625%, 1-1-30			500		504
					2,439
North Carolina - 1.6%
NC Eastn Muni Power Agy, Power Sys Rev Bonds, Ser 2008C,
6.000%, 1-1-19			250		288
NC Med Care Commission, Hlth Care Fac Rev Rfdg Bonds (Univ Hlth       Sys of Eastn Carolina), Ser 2008E-2,
6.000%, 12-1-36			500		555
NC Tpk Auth, Triangle Expressway Sys Rev Bonds, Ser 2009A,
0.000%, 1-1-37 (A)			500		120
Oak Island, NC, Enterprise Sys Rev Bonds, Ser 2009,
6.000%, 6-1-34			500		550
					1,513
Ohio - 1.0%
OH Major New State Infrastructure Proj Rev Bonds, Ser 2008-I,
6.000%, 6-15-17			395		492
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (NW OH Bond       Fund - Midwest Terminals Proj), Ser 2007C,
6.000%, 11-15-27			475		466
					958
Oklahoma - 2.6%
Cleveland Cnty Justice Auth, Sales Tax Rev Bonds (Cleveland Cnty       Detention Fac Proj), Ser 2009B,
5.750%, 3-1-29			500		535
Grand River Dam Auth, Rev Bonds, Ser 2008A,
5.000%, 6-1-18			905		1,070
OK Dev Fin Auth, Solid Waste Disp Rev Bonds (Waste Mgmt of OK, Inc.       Proj), Ser 2004A,
7.000%, 12-1-21			600		605
Tulsa Pub Fac Auth, Assembly Ctr Lease Payment Rev Bonds, Rfdg       Ser 1985,
6.600%, 7-1-14			205		229
					2,439
Oregon - 0.3%
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys),       Ser 2009A,
5.500%, 7-15-35			250		267
Pennsylvania - 3.8%
Allegheny Cnty Arpt Auth, Arpt Rev Rfdg Bonds, (Pittsburgh Intl Arpt),       Ser 2010A,
5.000%, 1-1-17			250		267
Dauphin Cnty General Auth, Hlth Sys Rev Bonds (Pinnacle Hlth Sys Proj),       Ser 2009A,
6.000%, 6-1-36			350		374
Lycoming Cnty Auth, Hlth Sys Rev Bonds (Susquehanna Hlth Sys Proj),       Ser 2009A,
5.750%, 7-1-39			500		520
PA Tpk Commission, Tpk Sub Rev Bonds, Ser 2009D,
5.500%, 12-1-41			250		270
PA Tpk Commission, Tpk Subordinate Rev Bonds, Sub Ser 2010 B-2,
0.000%, 12-1-28 (A)			1,500		1,188
Philadelphia, PA, GO Rfdg Bonds, Ser 2008A,
5.250%, 12-15-24			445		492
The Sch Dist of Philadelphia, PA, GO Bonds, Ser 2002A,
5.500%, 2-1-18			500		533
					3,644
Puerto Rico - 3.0%
PR Elec Power Auth, Power Rev Rfdg Bonds, Ser DDD,
5.000%, 7-1-21 (B)			1,000		1,102
Cmnwlth of PR, Pub Impvt Rfdg Bonds (GO Bonds), Ser 2007A,
5.500%, 7-1-21			750		826
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX,
5.750%, 7-1-36			500		557
PR Sales Tax Fin Corp, Sales Tax Rev Bonds, First Sub Ser 2010A,
0.000%, 8-1-33 (A)			500		354
					2,839
Rhode Island - 0.6%
RI Student Loan Auth, Student Loan Prog Rev Bonds, Sr Ser 2009A,
6.250%, 12-1-27			500		540
South Carolina - 0.3%
Tob Settlement Rev Mgmt Auth, 5% Tob Settlement Asset-Bkd Rfdg       Bonds, Ser 2008,
5.000%, 6-1-18			245		245
Tennessee - 0.6%
The Hlth, Edu and Hsng Fac Board of the Cnty of Shelby, TN, Rev Bonds       (Methodist Le Bonheur Hlthcare), Ser 2008C,
5.250%, 6-1-18			500		548
Texas - 9.2%
Arlington, TX Spl Tax Rev Bonds, Ser 2008,
5.000%, 8-15-18			300		352
Bexar Cnty Hlth Fac Dev Corp, Rev Bonds (Army Ret Residence Fndtn       Proj), Ser 2010,
6.200%, 7-1-45			250		262
Board of Regents, TX State Univ Sys, Rev Fin Sys Rev Bonds, Ser 2008,
5.250%, 3-15-19			355		423
Cass Cnty Indl Dev Corp, Envirnmt Impvt, Rev Rfdg Bonds, Ser 2009A,
9.250%, 3-1-24			500		683
El Paso, TX (El Paso Cnty), Water and Sewer Rev Rfdg Bonds,       Series 2008C,
5.000%, 3-1-17			500		581
Harris Cnty Cultural Edu Fac Fin Corp, Med Fac Rev Rfdg Bonds       (Baylor College of Medicine), Ser 2008D,
5.000%, 11-15-16			200		216
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008,
6.000%, 2-15-33			500		480
Howard Cnty, TX GO Bonds, Ser 2008,
4.650%, 2-15-24			505		520
Lower CO River Auth, Rfdg Rev Bonds, Ser 2008A,
5.750%, 5-15-23			500		574
Lufkin Hlth Fac Dev Corp, Rev Rfdg and Impvt Bonds (Mem Hlth Sys of       East TX), Ser 2009,
6.250%, 2-15-37			500		513
North TX Twy Auth, Sys Rev Rfdg Bonds (First Tier Current Interest       Bonds), Ser 2008A,
6.000%, 1-1-25			500		564
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008D,
0.000%, 1-1-30 (A)			1,000		367
Pflugerville Independent Sch Dist (Travis Cnty, TX), Unlimited Tax Sch       Bldg Bonds, Ser 2001,
5.500%, 8-15-19			250		261
Prosper, TX (Collin Cnty), Combination Tax and Rev Cert of Oblig, Ser 2008,
5.500%, 2-15-20			500		579
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds (NW Sr Hsng       Corp - Edgemere Proj), Ser 2006A,
6.000%, 11-15-36			500		499
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds (Buckingham       Sr Living Cmnty, Inc. Proj), Ser 2007,
5.625%, 11-15-27			250		239
Trinity River Auth of TX (Tarrant Cnty Water Proj), Impvt Rev Bonds,       Ser 2008,
5.750%, 2-1-26			325		374
TX Private Activity Bond Surface Trans Corp, Sr Lien Rev Bonds (North       Tarrant Express Managed Lanes Proj), Ser 2009,
6.875%, 12-31-39			500		544
TX Private Activity Bond Surface Trans Corp, Sr Lien Rev Bonds (LBJ       Infrastructure Group LLC IH-635 Managed Lanes Proj), Ser 2010,
7.500%, 6-30-33			750		858
					8,889
Vermont - 0.2%
VT Hsng Fin Agy, Sngl Fam Hsng Bonds, Ser 27,
5.500%, 11-1-37			155		160
Virgin Islands - 1.7%
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note - Cruzan       Proj), Ser 2009A,
6.000%, 10-1-39			500		540
VI Pub Fin Auth, Subordinated Rev Bonds (VI Matching Fund Loan       Note - Diageo Proj), Ser 2009A,
5.000%, 10-1-25			1,000		1,041
					1,581
Virginia - 1.5%
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States       Hlth Alliance), Ser 2009C,
7.500%, 7-1-29			500		582
VA Hsng Dev Auth, Cmnwlth Mtg Bonds, Ser 2008E,
5.500%, 7-1-20			500		538
VA Pub Bldg Auth, Pub Fac Rev Bonds, Ser 2008B,
5.250%, 8-1-22			250		296
					1,416
Washington - 1.1%
WA Hlth Care Fac Auth, Rev Bonds (Swedish Hlth Svcs), Ser 2009A,
6.500%, 11-15-33			500		537
WA Hlth Care Fac Auth, Rev Bonds (VA Mason Med Ctrs), Ser 2007C,
5.500%, 8-15-36			500		506
					1,043
West Virginia - 0.6%
WV Hosp Fin Auth, Hosp Rev Rfdg and Impvt Bonds (WV Utd Hlth Sys       Obligated Group), Ser 2009C,
5.500%, 6-1-39			500		540
Wisconsin - 0.6%
WI Hlth and Edu Fac Auth, Rev Bonds (Pro Hlth Care, Inc. Obligated       Group), Ser 2009,
6.625%, 2-15-39			500		555
Wyoming - 0.9%
Hsng Auth of Cheyenne, Hsng Rev Bonds (Foxcrest II Proj), Ser 2004,
5.750%, 6-1-34			300		284
WY Muni Power Agy, Power Supply Sys Rev Bonds, Ser 2008A,
5.250%, 1-1-23			500		548
					832
TOTAL MUNICIPAL BONDS - 92.2%				$	87,831
(Cost: $81,003)
SHORT-TERM SECURITIES
Commercial Paper (C) - 7.3%
CVS Caremark Corporation,
0.270%, 10-4-10			2,000		2,000
IBM International Group Capital LLC (International Business Machines       Corporation),
0.000%, 10-1-10			4,907		4,907
					6,907
Master Note - 0.7%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (D)			689		689

Municipal Obligations - 1.6%
Los Angeles, CA, Wastewater Sys Sub Rev Bonds, Var Rate Rfdg,       Ser 2008-G (Bank of America, N.A.),
0.260%, 10-1-10 (D)	1,545		1,545
TOTAL SHORT-TERM SECURITIES - 9.6%		$	9,141
(Cost: $9,141)
TOTAL INVESTMENT SECURITIES - 101.8%		$	96,972
(Cost: $90,144)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.8%)			(1,699	)
NET ASSETS - 100.0%		$	95,273

Notes to Schedule of Investments

(A)Zero coupon bond.

(B)Purchased on a when-issued basis with settlement subsequent to September 30, 2010.

(C)Rate shown is the yield to maturity at September 30, 2010.

(D)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Municipal High Income Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Bonds	90.7%
Municipal Bonds	90.7%
Cash and Cash Equivalents	9.3%

Lipper Rankings

Category: Lipper High Yield Municipal Debt Funds	Rank	Percentile
1 Year	3/113	3

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Quality Weightings

Investment Grade	48.1%
AAA	3.0%
AA	1.8%
A	12.0%
BBB	31.3%
Non-Investment Grade	42.6%
BB	3.1%
B	4.5%
CCC	1.8%
Non-rated	33.2%
Cash and Cash Equivalents	9.3%

Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's.

ILLUSTRATION OF FUND EXPENSES

Ivy Municipal High Income Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,072.60	0.95%	$4.97
Class B	$1,000	$1,068.10	1.73%	$8.89
Class C	$1,000	$1,067.90	1.72%	$8.89
Class I	$1,000	$1,074.10	0.70%	$3.63
Class Y	$1,000	$1,072.30	0.95%	$4.87
Based on 5% Return(2)
Class A	$1,000	$1,020.31	0.95%	$4.85
Class B	$1,000	$1,016.49	1.73%	$8.67
Class C	$1,000	$1,016.44	1.72%	$8.67
Class I	$1,000	$1,021.55	0.70%	$3.54
Class Y	$1,000	$1,020.38	0.95%	$4.75

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

MUNICIPAL BONDS	Principal			Value
Arizona - 1.2%
The Indl Dev Auth of Mohave Cnty, Correctional Fac Contract Rev Bonds       (Mohave Prison, LLC Expansion Proj), Ser 2008,
8.000%, 5-1-25		$	2,000	$	2,328
The Indl Dev Auth of the Cnty of Pima, Edu Rev Bonds (Noah Webster       Basic Sch Proj), Ser 2004A,
6.125%, 12-15-34			815		807
					3,135
Arkansas - 0.2%
Pub Fac Brd of Benton Cnty, AR, Charter Sch Lease Rev Bonds       (BCCSO Proj), Ser 2010A,
6.000%, 6-1-40			500		518
California - 8.2%
Adelanto Pub Auth, Fixed Rate Rfdg Rev Bonds (Util Sys Proj), Ser 2009A,
6.750%, 7-1-39			1,400		1,490
Anaheim Cmnty Facs Dist No. 08-1 (Platinum Triangle), Spl Tax       Bonds, Ser 2010,
6.250%, 9-1-40			2,000		2,016
CA Muni Fin Auth (Literacy First Proj), Charter Sch Lease Rev       Bonds, Ser 2010B,
6.000%, 9-1-30			1,085		1,101
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj),       Ser 2009A,
8.750%, 10-1-39			500		594
CA Statewide Cmnty Dev Auth, Rev Bonds (Southn CA Presbyterian       Homes), Ser 2009,
7.000%, 11-15-29			150		165
CA Statewide Cmnty Dev Auth, Sch Fac Rev Bonds (Aspire Pub Sch),       Ser 2010:
6.000%, 7-1-40			250		254
6.350%, 7-1-46			250		258
CA Various Purp GO Bonds:
6.000%, 4-1-35			250		278
6.000%, 11-1-39			500		559
CA Dept of Water Res, Power Supply Rev Bonds, Ser 2010L,
5.000%, 5-1-22			1,000		1,162
Cert of Participation, Oro Grande Elementary Sch Dist, Ser 2010,
6.125%, 9-15-40			1,500		1,565
Cmnty Fac Dist No. 15 (Mission Ranch) of Riverside Un Sch Dist, Spl Tax       Bonds (Impvt Area No. 3), Ser 2009A:
6.500%, 9-1-29			360		371
6.750%, 9-1-39			70		72
Cmnty Fac Dist No. 2009-1 of Chino, 2010 Spl Tax Bonds,
6.750%, 9-1-40			500		516
Cmnty Redev Agy of Hawthorne, Cmnty Fac Dist No. 1999-1       (Gateway Ctr), 2010 Spl Tax Rfdg Bonds,
6.125%, 10-1-25			2,200		2,345
Golden State Tob Sec Corp, Tob Settlement Asset-Bkd Bonds, Ser 2007A-1,
5.125%, 6-1-47			1,000		685
Inland Empire Tob Securitization Auth, Tob Settlement Asset-Bkd Bonds       (Inland Empire Tob Securitization Corp), Ser 2007,
4.625%, 6-1-21			1,000		820
Lompoc Redev Agy (Santa Barbara Cnty, CA), Old Town Lompoc       Redev Proj, Tax Alloc Bonds, Ser 2010:
5.750%, 9-1-29			225		231
5.750%, 9-1-31			365		372
6.000%, 9-1-39			1,000		1,021
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Participation:
6.625%, 11-1-29			200		221
6.750%, 11-1-39			100		111
Redev Agy for the Cnty of Riverside, Interstate 215 Corridor Redev Proj       Area, 2010 Tax Alloc Bonds, Ser E,
6.500%, 10-1-40			1,500		1,588
Redev Agy of Hollister, Cmnty Dev Proj Tax Alloc Bonds (Cnty of San       Benito, CA), Ser 2009:
6.750%, 10-1-29			75		83
7.000%, 10-1-32			510		570
Redev Agy of San Buenaventura, Merged San Buenaventura Redev       Proj, 2008 Tax Alloc Bonds,
8.000%, 8-1-38			100		114
San Diego Cnty Regional Arpt Auth, Sub Arpt Rev Bonds, Ser 2010A,
5.000%, 7-1-21 (A)			2,000		2,258
					20,820
Colorado - 5.5%
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2010,
6.125%, 10-1-40			2,500		2,624
Church Ranch Metro Dist, Westminster, CO, GO Ltd Tax Bonds, Ser 2003,
6.000%, 12-1-33			160		141
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical       Academy Proj), Ser 2008A,
7.400%, 12-1-38			85		101
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (Twin Peaks       Charter Academy Proj), Ser 2008,
7.000%, 11-15-38			230		271
CO Edu and Cultural Fac Auth, Independent Sch Rev Rfdg Bonds       (Vail Mountain Sch Proj), Ser 2010,
6.125%, 5-1-40			1,000		1,042
CO Hlth Fac Auth (Christian Living Cmnty - Clermont Park Proj), Rev       Bonds, Ser 2009A:
7.250%, 1-1-19			100		106
9.000%, 1-1-34			30		32
CO Hlth Fac Auth, Rev Bonds (Christian Living Cmnty Proj), Ser 2006A,
5.750%, 1-1-37			350		318
CO Hlth Fac Auth, Rev Bonds (Total Longterm Care Ntl Oblig Group       Proj), Ser 2010A,
6.250%, 11-15-40 (A)			1,250		1,263
Cordillera Metro Dist, GO Bonds, Ser 2000B,
6.200%, 12-1-20			80		80
Denver Hlth and Hosp Auth, Ser 2009A,
6.250%, 12-1-33			1,020		1,062
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt       Bonds, Ser 2008,
6.200%, 12-1-37			1,000		1,021
North Range Metro Dist No. 2, Adams Cnty, CO, Ltd Tax GO Bonds,       Ser 2007,
5.500%, 12-15-27			1,000		860
Regional Trans Dist, Private Activity Bonds (Denver Transit Partners       Eagle P3 Proj), Ser 2010,
6.500%, 1-15-30			2,000		2,235
Sorrel Ranch Metro Dist, Arapahoe Cnty, CO, GO Ltd Tax Bonds, Ser 2006,
5.750%, 12-1-36			345		280
Tallgrass Metro Dist, Arapahoe Cnty, CO, GO Ltd Tax Rfdg and Impvt       Bonds, Ser 2007,
5.250%, 12-1-37			2,161		1,796
Tallyn's Reach Metro Dist No. 3 (Aurora, CO), GO Bonds, Ser 2004,
6.625%, 12-1-23			500		525
Wildgrass Metro Dist, Broomfield Cnty, CO, GO Ltd Tax Rfdg Bonds,       Ser 2007,
6.200%, 12-1-34			550		552
					14,309
Connecticut - 0.3%
CT Dev Auth, Pollutn Ctl Rev Rfdg Bonds (The CT Light and Power Co       Proj), Ser 1993B,
5.950%, 9-1-28			150		152
Eastn CT Res Recovery Auth, Solid Waste Rev Bonds (Wheelabrator       Lisbon Proj), Ser 1993A,
5.500%, 1-1-14			140		140
Harbor Point Infrastructure Impvt Dist (Harbor Point Proj), Spl Oblig Rev       Bonds, Ser 2010A,
7.875%, 4-1-39			500		538
					830
District Of Columbia - 0.7%
Metro WA Arpts Auth, Dulles Toll Road, Second Sr Lien Rev Bonds,       Ser 2010B,
0.000%, 10-1-44 (B)			1,000		658
Metro WA Arpts Auth, Arpt Sys Rev Bonds, Ser 2010A,
5.000%, 10-1-22			1,000		1,152
					1,810
Florida - 2.5%
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009:
6.500%, 11-1-29			585		616
6.750%, 11-1-39			1,290		1,371
FL Hurricane Catastrophe Fund Fin Corp, Rev Bonds, Ser 2010A,
5.000%, 7-1-15			1,000		1,094
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj       (Univ Cmnty Hosp), Ser 2008B,
8.000%, 8-15-32			350		456
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B,
5.000%, 10-1-25			1,000		1,083
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmnty       Proj), Ser 2010A,
6.000%, 8-1-45			1,800		1,866
					6,486
Georgia - 0.6%
DeKalb Cnty, GA, Hosp Auth, Rev Anticipation Cert (DeKalb Med Ctr,       Inc. Proj), Ser 2010,
6.125%, 9-1-40			500		516
Dev Auth of Clayton Cnty, GA, Spl Fac Rev Bonds (Delta Air Lines,       Inc. Proj), Ser 2009A,
8.750%, 6-1-29			400		456
Muni Elec Auth of GA, Combined Cycle Proj Rev Bonds, Ser 2010A,
5.000%, 11-1-24			500		560
					1,532
Guam - 2.2%
Cert of Participation (John F. Kennedy High Sch Proj), Dept of Edu, GU,
6.625%, 12-1-30			1,400		1,430
Cert of Participation (John F. Kennedy High Sch Proj), Dept of Edu, GU,       Ser 2010A,
6.875%, 12-1-40			1,500		1,537
Govt of GU, GO Bonds, Ser 1993A,
5.400%, 11-15-18			2,000		2,001
Govt of GU, GO Bonds, Ser 2009A:
5.750%, 11-15-14			125		132
7.000%, 11-15-39			450		508
					5,608
Hawaii - 0.2%
Dept of Budget and Fin of HI, Spl Purp Sr Living Rev Bonds (15 Craigside       Proj), Ser 2009A,
8.750%, 11-15-29			450		528
Idaho - 0.6%
ID Hsng and Fin Assoc (Compass Pub Charter Sch, Inc. Proj), Ser 2010A:
6.250%, 7-1-40			1,000		1,034
6.250%, 7-1-45			550		563
					1,597
Illinois - 6.9%
Belleville, IL, Tax Increment Rfdg Rev Bonds (Frank Scott Parkway Redev       Proj), Ser 2007A,
5.700%, 5-1-36			400		341
Bourbonnais, IL, Indl Proj Rev Bonds (Oliver Nazarene Univ Proj), Ser 2010,
6.000%, 11-1-35			1,500		1,629
Cert of Participation, Metra Market of Chicago, L.L.C. Redev Proj, Ser A,
6.870%, 2-15-24			1,600		1,681
Chicago O'Hare Intl Arpt Spl Fac Rev Rfdg Bonds (American Airlines, Inc.       Proj), Ser 2007,
5.500%, 12-1-30			1,500		1,219
Fairview Heights, IL, Tax Increment Rfdg Rev Bonds (Shoppes at St. Clair       Square Redev Proj), Ser 2009A,
8.000%, 12-1-28			510		541
IL Fin Auth (Greenfields of Geneva Proj), Rev Bonds, Ser 2010C-3,
6.250%, 2-15-16			3,000		2,999
IL Fin Auth, Rev Bonds (Silver Cross Hosp and Med Ctrs), Ser 2009,
7.000%, 8-15-44			375		422
IL Fin Auth, Rev Bonds (Three Crowns Park Proj), Ser 2006A,
5.875%, 2-15-38			1,400		1,335
IL Fin Auth, Rev Bonds (Rush Univ Med Ctr Oblig Group), Ser 2009C,
6.625%, 11-1-39			250		274
IL Fin Auth, Rev Bonds (Rush Univ Med Ctr Oblig Group), Ser 2009A,
7.250%, 11-1-38			65		74
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe) Tax       Bonds, Ser 2009,
7.875%, 3-1-32			500		525
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Ad       Valorem Tax Bonds, Ser 2010,
7.500%, 3-1-32			1,500		1,536
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2008,
7.000%, 12-1-22			500		521
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2009,
8.000%, 1-15-22			740		792
Upper IL River Vly Dev Auth (Pleasant View Luther Home Proj), Rev       Bonds, Ser 2010:
7.250%, 11-15-40			1,100		1,095
7.375%, 11-15-45			1,500		1,504
Vlg of Matteson, Cook Cnty, IL, GO Cap Apprec Debt Cert, Ser 2010,
0.000%, 12-1-29 (B)			1,840		1,391
					17,879
Indiana - 3.3%
Hendricks Cnty, IN Redev Dist, Tax Increment Rev Rfdg Bonds, Ser 2010B,
6.450%, 1-1-23			250		264
IN Fin Auth, Edu Fac Rev Bonds (Irvington Cmnty Sch Proj), Ser 2009A,
9.000%, 7-1-39			175		216
Lake Station 2008 Bldg Corp, Lake Station, IN, First Mtg Bonds, Ser 2010,
6.000%, 7-15-27			3,170		3,425
Rockport, IN, Pollutn Ctrl Rev Rfdg Bonds (IN MI Power Co Proj), Ser 2009A,
6.250%, 6-1-25			1,000		1,127
Whitestown, IN, Econ Dev Tax Increment Rev Bonds (Perry Industrial       Park and Whitestown Crossing Proj), Ser 2010A,
7.000%, 2-1-30			1,500		1,538
Whiting IN, Redev Dist Tax Increment Rev Bonds (Standard Avenue Proj),       Ser 2006,
5.350%, 1-15-27			555		511
Whiting, IN, Redev Dist Tax Increment Rev Bonds of 2010 (Lakefront       Dev Proj),
6.750%, 1-15-32			1,430		1,462
					8,543
Iowa - 0.2%
Coralville, IA (Coralville Marriott Hotel and Convention Ctr), Cert of       Participation in Base Lease Payments, Ser 2006D,
5.250%, 6-1-26			500		528
Kansas - 0.6%
Arkansas City, KS Pub Bldg Commission, Rev Bonds (South Cent KS       Regional Med Ctr), Ser 2009,
7.000%, 9-1-38			200		222
Olathe, KS, Spl Oblig Tax Increment Rev Bonds (West Vlg Ctr Proj),       Ser 2007:
5.450%, 9-1-22			500		341
5.500%, 9-1-26			500		338
Unif Govt of Wyandotte Cnty/Kansas City, KS, Sales Tax Spl Oblig       (Redev Proj Area B - Major Multi-Sport Athletic Complex Proj),       Ser 2010B,
0.000%, 6-1-21 (B)			1,100		620
					1,521
Kentucky - 2.4%
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A:
6.375%, 6-1-40			1,500		1,617
6.500%, 3-1-45			500		542
Murray, KY, Hosp Fac Rev Bonds (Murray-Calloway Cnty Pub Hosp       Corp Proj), Ser 2010,
6.375%, 8-1-40			2,000		2,065
Ohio, KY, Pollutn Ctl Rfdg Rev Bonds (Big Rivers Elec Corp Proj),       Ser 2010A,
6.000%, 7-15-31			2,000		2,083
					6,307
Louisiana - 1.1%
LA Offshore Terminal Auth, Deepwater Port Rev Bonds (LOOP LLC Proj),       Ser 2007B-1A,
1.600%, 10-1-37			2,000		2,000
New Orleans Aviation Board, Gulf Opp Zone CFC Rev Bonds       (Consolidated Rental Car Proj), Ser 2009A,
6.500%, 1-1-40			745		795
					2,795
Maine - 0.2%
Portland, ME, General Arpt Rev Bonds, Ser 2010,
5.000%, 1-1-30			500		533
Maryland - 1.6%
MD Econ Dev Corp, Econ Dev Rev Bonds (Terminal Proj), Ser B,
5.750%, 6-1-35			500		521
MD Econ Dev Corp, Port Fac Rfdg Rev Bonds (CNX Marine Terminals Inc.       Port of Baltimore Fac), Ser 2010,
5.750%, 9-1-25			3,000		3,103
MD Hlth and Higher Ed Fac Auth, Rev Bonds, Doctors Cmnty Hosp,       Ser 2010,
5.750%, 7-1-38			500		496
					4,120
Massachusetts - 0.2%
MA Dev Fin Agy, Sr Living Fac Rev Bonds (The Groves in Lincoln Issue),       Ser 2009A,
7.875%, 6-1-44			200		214
MA Dev Fin Agy, Sr Living Fac Rev Bonds (The Groves in Lincoln Issue),       Ser 2009C-2,
6.250%, 6-1-14			190		190
					404
Michigan - 5.1%
Detroit, MI Sewage Disp Sys, Sr Lien Rev Rfdg Bonds (Modal Fixed Rate),       Ser 2001(C-1),
7.000%, 7-1-27			500		601
Detroit, MI Sewage Disp Sys, Sr Lien Rev Rfdg Bonds (Modal Fixed Rate),       Ser 2003(B),
7.500%, 7-1-33			500		611
Detroit, MI, GO Bonds, Ser 2004-A(1),
5.250%, 4-1-23			1,420		1,228
Flint Hosp Bldg Auth, Bldg Auth Rev Rental Bonds (Hurley Med Ctr),       Ser 2010:
7.375%, 7-1-35			350		369
7.500%, 7-1-39			250		263
Garden City Hosp Fin Auth, Hosp Rev and Rfdg Bonds (Garden City Hosp       Oblig Group), Ser 2007A,
4.875%, 8-15-27			250		198
MI Fin Auth, Public Sch Academy Ltd Oblig Rev Bonds (Hanley Intl       Academy, Inc. Proj), Ser 2010A,
6.125%, 9-1-40			4,535		4,543
MI Fin Auth, Sr Edu Fac Rev Bonds (St. Catherine of Siena Academy       Proj), Ser 2010A,
8.500%, 10-1-45			2,000		2,027
MI Fin Auth, State Aid Rev Notes (Sch Dist of Detroit), Ser 2010E,
4.750%, 8-22-11			2,000		2,014
Royal Oak Hosp Fin Auth, Hosp Rev and Rfdg Bonds (William Beaumont       Hosp Oblig Group), Ser 2009V:
8.000%, 9-1-29			20		24
8.250%, 9-1-39			750		911
Royal Oak Hosp Fin Auth, Hosp Rev and Rfdg Bonds (William Beaumont       Hosp Oblig Group), Ser 2009W,
6.000%, 8-1-39			150		156
The Econ Dev Corp of Dearborn, MI, Ltd Oblig Rev and Rfdg Rev Bonds       (Henry Ford Vlg, Inc. Proj), Ser 2008,
7.000%, 11-15-38			150		146
					13,091
Minnesota - 1.0%
Minneapolis Hlth Care Sys Rev Bonds (Fairview Hlth Services), Ser 2008B,
6.500%, 11-15-38			2,350		2,708
Missouri - 6.4%
Arnold, MO, Real Ppty Tax Increments Rev Bonds (Arnold Triangle       Redev Proj), Ser 2009A,
7.750%, 5-1-28			700		775
Belton, MO, Tax Increment Rev Bonds (Belton Town Centre Proj), Ser 2006,
5.625%, 3-1-25			520		479
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev       Bonds, Ser 2006A,
6.125%, 12-1-36			200		137
Grindstone Plaza Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev       Bonds, Ser 2006A:
5.500%, 10-1-31			365		263
5.550%, 10-1-36			325		228
Jennings, MO, Tax Increment and Cmnty Impvt Rfdg Rev Bonds (Northland       Redev Area Proj), Ser 2006,
5.000%, 11-1-23			1,460		1,345
Lakeside 370 Levee Dist (St. Charles Cnty, MO), Levee Dist Impvt Bonds,       Ser 2008:
6.000%, 4-1-18			1,100		1,087
7.000%, 4-1-28			335		334
Land Clearance for Redev Auth of St. Louis, Recovery Zone Fac       Bonds (Kiel Opera House Proj), Ser 2010B,
7.000%, 9-1-35			1,000		1,024
Liberty, MO Tax Increment Rev Bonds (Liberty Triangle Proj), Ser 2007,
5.500%, 10-1-22			260		234
Manchester, MO, Tax Increment and Trans Rfdg Rev Bonds (Highway       141/Manchester Road Proj), Ser 2010,
6.875%, 11-1-39			1,500		1,537
MO Dev Fin Board, Research Fac Rev Bonds (Midwest Research       Institute Proj), Ser 2007,
4.500%, 11-1-27			225		212
St. Louis Muni Fin Corp, Compound Interest Leasehold Rev Bonds       (Convention Ctr Cap Impvt Proj), Ser 2010A:
0.000%, 7-15-36 (B)			750		166
0.000%, 7-15-37 (B)			1,500		311
The Elm Point Commons Cmnty Impvt Dist (St. Charles, MO), Spl Assmt       Bonds, Ser 2007,
5.750%, 3-1-27			110		102
The Indl Dev Auth of Bridgeton, MO, Sales Tax Revenue Bonds (Hilltop       Cmnty Impvt Dist Proj), Ser 2008A,
5.875%, 11-1-35			250		186
The Indl Dev Auth of Kansas City, MO, Hlth Care Fac First Mtg Rev Bonds       (The Bishop Spencer Place Proj), Ser 1994:
6.250%, 1-1-24			1,500		1,483
6.500%, 1-1-35			600		566
The Indl Dev Auth of Moberly, MO, Annual Appropriation Recovery Zone       Fac Bonds (Project Sugar), Ser 2010-C,
6.000%, 9-1-24			2,000		2,069
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa       Phase II Retail Proj), Ser 2007,
6.850%, 4-1-29			225		225
The Indl Dev Auth of St. Joseph, MO, Hlthcare Rev Bonds (Living Cmnty of       St. Joseph Proj), Ser 2002,
7.000%, 8-15-32			2,000		1,912
The Indl Dev Auth of St. Louis, MO, Tax Increment and Cmnty Impvt Dist       Rfdg Rev Bonds (Loughborough Commons Redev Proj), Ser 2007,
5.750%, 11-1-27			940		899
The Indl Dev Auth of the City of Kirkwood, MO, Ret Cmnty Rev Bonds       (Aberdeen Heights Proj), Ser 2010C-2,
7.000%, 11-15-15			250		254
Univ Place Trans Dev Dist (St. Louis Cnty, MO), Sub Trans Sales Tax       and Spl Assmt Rev Bonds, Ser 2009,
7.500%, 4-1-32			650		747
					16,575
Nevada - 1.0%
Clark Cnty, NV, Spl Impvt Dist No. 142 (Mountain's Edge), Local Impvt       Bonds, Ser 2003,
6.100%, 8-1-18			95		95
Las Vegas Redev Agy, NV, Tax Increment Rev Bonds, Ser 2009A:
6.000%, 6-15-15			1,325		1,469
8.000%, 6-15-30			500		591
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008,
8.000%, 12-1-38			265		317
					2,472
New Hampshire - 0.8%
Strafford Cnty, NH, GO Rev Anticipation Notes 2010,
5.500%, 2-18-11			2,000		2,000
New Jersey - 1.6%
NJ Econ Dev Auth, Spl Fac Rev Bonds (Continental Airlines, Inc. Proj),       Ser 1999:
6.250%, 9-15-19			115		114
6.400%, 9-15-23			2,500		2,496
NJ Econ Dev Auth, Spl Fac Rev Bonds (Continental Airlines, Inc. Proj),       Ser 2000,
7.000%, 11-15-30			1,000		1,005
NJ Edu Fac Auth, Rev Rfdg Bonds, Univ of Medicine and Dentistry of       NJ Issue, Ser 2009B,
7.500%, 12-1-32			450		531
					4,146
New York - 3.7%
Dormitory Auth, Sch Dist Rev Bond Fin Prog, Ser 2010A,
5.000%, 10-1-22			1,000		1,141
Long Island Power Auth, Elec Sys General Rev Bonds, Ser 2010A,
5.000%, 5-1-15			1,000		1,145
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds       (Amsterdam at Harborside Proj), Ser 2007A,
6.700%, 1-1-43			1,000		1,013
NYC GO Bonds, Fiscal Ser 2011B,
5.000%, 8-1-20			1,000		1,180
NYC Indl Dev Agy, Spl Fac Rev Bonds (American Airlines, Inc. JFK Intl       Arpt Proj), Ser 2005:
7.125%, 8-1-11			100		101
7.500%, 8-1-16			500		520
7.750%, 8-1-31			1,295		1,370
Suffolk Cnty Indl Dev Agy, Civic Fac Rev Bonds (The Southampton Hosp       Assoc Civic Fac), Ser 1999A:
7.250%, 1-1-20			370		375
7.250%, 1-1-30			1,940		1,947
Suffolk Cnty Indl Dev Agy, Civic Fac Rev Bonds (The Southampton Hosp       Assoc Civic Fac), Ser 1999B,
7.625%, 1-1-30			535		539
Yonkers Indl Dev Agy, Civic Fac Rev Bonds (St. John's Riverside Hosp       Proj), Ser 2001B,
7.125%, 7-1-31			300		301
					9,632
North Carolina - 1.5%
NC Med Care Commission (Galloway Ridge Proj), Ret Fac First Mtg Rev       Bonds, Ser 2010A,
6.000%, 1-1-39 (A)			1,520		1,516
NC Eastn Muni Power Agy, Power Sys Rev Bonds, Rfdg Ser 2010A,
5.000%, 1-1-21			2,015		2,320
					3,836
Ohio - 5.2%
OH Pollutn Ctl Rev Bonds (The Standard Oil Co Proj), Ser 1985,
6.750%, 12-1-15			2,815		3,206
Buckeye Tob Settlement Fin Auth, Tob Settlement Asset-Bkd Bonds,       Ser 2007:
5.125%, 6-1-24			1,000		858
6.500%, 6-1-47			150		121
Cleveland-Cuyahoga Cnty Port Auth (Garfield Heights Proj), Dev Rev       Bonds, Ser 2004D,
5.250%, 5-15-23			1,545		1,281
Greene Cnty Port Auth, Adult Svc Fac Rev Bonds (Greene, Inc. Proj),       Ser 2009,
7.500%, 12-1-33			500		582
OH Air Quality Dev Auth, Air Quality Rev Bonds (OH Vly Elec Corp Proj),       Ser 2009E,
5.625%, 10-1-19			2,525		2,764
OH Higher Ed Fac Rev Bonds (Ashland Univ 2010 Proj),
6.250%, 9-1-24			500		523
OH Hosp Fac Rev Bonds (Summa Hlth Sys 2010 Proj),
5.750%, 11-15-40			500		515
OH Water Dev Auth, Pollutn Ctl Rev Rfdg Bonds, Ser2010-A,
3.375%, 7-1-33			2,500		2,503
Toledo Lucas Cnty Port Auth, Dev Rev Bonds (Toledo Express Arpt Proj),       Ser 2004C,
6.375%, 11-15-32			310		311
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (NW OH Bond Fund),       (Toledo Sch for the Arts Proj), Ser 2007B,
5.500%, 5-15-28			950		871
					13,535
Oklahoma - 1.6%
OK Cnty Fin Auth, Ret Fac Rev Bonds (Concordia Life Care Cmnty),       Ser 2005A,
6.125%, 11-15-25			2,000		2,007
OK Cnty Fin Auth, Ret Fac Rev Bonds (Concordia Life Care Cmnty),       Ser 2005,
6.000%, 11-15-38			2,200		2,062
					4,069
Oregon - 1.3%
Hosp Fac Auth of Deschutes Cnty, OR, Hosp Rev Rfdg Bonds       (Cascade Hltcare Cmnty, Inc.) Ser 2008,
8.250%, 1-1-38			550		671
OR Fac Auth, Rev Bonds (Concordia Univ Proj), Ser 2010A:
6.125%, 9-1-30			1,135		1,160
6.375%, 9-1-40			1,600		1,642
					3,473
Pennsylvania - 4.2%
Beaver Cnty Indl Dev Auth (Beaver Cnty, PA), Pollutn Ctl Rev Rfdg       Bonds, Ser 2005-A,
3.375%, 1-1-35			2,500		2,503
Butler Cnty Hosp Auth, Hosp Rev Bonds (Butler Hlth Sys Proj), Ser 2009B,
7.250%, 7-1-39			90		104
PA Econ Dev Fin Auth, Solid Waste Disp Rev Bonds (Waste Mgmt, Inc.       Proj), Ser 2004A,
4.700%, 11-1-21			675		745
PA Higher Edu Fac Auth, Rev Bonds (Edinboro Univ Fndtn Student Hsng       Proj at Edinboro Univ PA), Ser 2010,
6.000%, 7-1-43			1,530		1,579
PA Higher Edu Fac Auth, Student Hsng Rev Bonds (Univ Properties, Inc.       Student Hsng Proj at East Stroudsburg Univ of PA), Ser 2010,
6.000%, 7-1-21			1,000		1,134
PA Tpk Commission, Tpk Sub Rev Bonds, Sub Ser 2010 B-2,
0.000%, 12-1-34 (B)			3,000		2,369
Philadelphia, PA, Gas Works Rev Bonds (1998 Gen Ordinace), Ninth Ser,
5.250%, 8-1-40			1,250		1,266
Philadelphia, PA, Water and Wastewater Rev Bonds, Ser 2010C,
5.000%, 8-1-23			1,000		1,118
The Borough of Langhorne Manor, Higher Edu and Hlth Auth (Bucks       Cnty, PA), Hosp Rev Bonds (Lower Bucks Hosp), Ser 1992,
7.300%, 7-1-12 (C)			70		46
					10,864
Puerto Rico - 0.9%
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX,
5.250%, 7-1-40			500		524
PR Sales Tax Fin Corp, Sales Tax Rev Bonds, First Sub Ser 2009A,
6.375%, 8-1-39			500		568
PR Sales Tax Fin Corp, Sales Tax Rev Bonds, First Sub Ser 2010C,
6.500%, 8-1-35			1,000		1,163
					2,255
South Carolina - 0.9%
SC Jobs - Econ Dev Auth, Student Hsng Rev Bonds (Coastal Hsng       Fndtn, LLC Proj), Ser 2009A:
6.000%, 4-1-30			1,510		1,578
6.500%, 4-1-42			750		800
					2,378
Tennessee - 0.8%
The Hlth and Edu Fac Board of Johnson City, TN, Hosp Rfdg Rev Bonds       (Mountain States Hlth Alliance), Ser 2010A,
6.500%, 7-1-38			500		546
The Hlth and Edu Fac Board of the Metro Govt of Nashville and Davidson       Cnty, TN (The Blakeford at Green Hills), Rev Rfdg Bonds, Ser 1998,
5.650%, 7-1-24			1,700		1,602
					2,148
Texas - 10.0%
Dallas-Fort Worth Intl Arpt, Fac Impvt Corp, American Airlines, Inc., Rev       Rfdg Bonds, Ser 2000A,
9.000%, 5-1-29			2,000		2,097
Alliance Arpt Auth, Inc., Spl Fac Rev Bonds (American Airlines, Inc.       Proj), Ser 1991,
7.000%, 12-1-11			655		646
Bexar Cnty Hlth Fac Dev Corp, Rev Bonds (Army Ret Residence Fndtn       Proj), Ser 2010,
6.200%, 7-1-45			250		262
Cass Cnty Indl Dev Corp, Envirnmt Impvt Rev Bonds, Ser 2009A,
9.500%, 3-1-33			500		656
Cent TX Regional Mobility Auth, Sr Lien Rev Bonds, Ser 2010:
0.000%, 1-1-36 (B)			500		97
0.000%, 1-1-40 (B)			500		73
Hackberry, TX, Combination Spl Assmt and Contract Rev Road Bonds       (Hackberry Hidden Cove Pub Impvt Dist No. 2 Proj), Ser 2009A:
8.625%, 9-1-29			100		107
9.000%, 9-1-38			250		265
Harris Cnty Cultural Edu Fac Fin Corp, Rev Rfdg Bonds (Space Ctr       Houston Proj), Sr Ser 2009,
7.000%, 8-15-28			500		519
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008,
6.000%, 2-15-38			150		141
La Vernia Higher Edu Fin Corp (KIPP, Inc.), Ser 2009A,
6.375%, 8-15-44			500		534
La Vernia Higher Edu Fin Corp (Winfree Academy Charter Sch), Edu Rev       Bonds, Ser 2009,
9.000%, 8-15-38			495		601
Lufkin Hlth Fac Dev Corp, Rev Rfdg and Impvt Bonds (Mem Hlth Sys of East       TX), Ser 2009,
6.250%, 2-15-37			500		513
Pharr, TX Higher Edu Fin Auth, Edu Rev Bonds (Idea Pub Schs), Ser 2009A:
6.250%, 8-15-29			350		368
6.500%, 8-15-39			200		211
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds (NW Sr Hsng       Corp - Edgemere Proj), Ser 2006A:
5.750%, 11-15-11			910		930
6.000%, 11-15-26			250		255
6.000%, 11-15-36			500		499
Tarrant Cnty Cultural Edu Fac Fin Corp, Charter Sch Rev Bonds       (Trinity Basin Preparatory Proj), Ser 2009A,
7.750%, 6-1-39			155		176
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds       (Buckingham Sr Living Cmnty, Inc. Proj) Ser 2007,
5.500%, 11-15-22			3,000		2,964
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds       (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2007,
5.625%, 11-15-27			250		239
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds (Mirador Proj), Ser 2010A:
8.000%, 11-15-29			2,500		2,660
8.125%, 11-15-39			250		261
8.250%, 11-15-44			250		263
Travis Cnty Hlth Fac Dev Corp, Ret Fac Rev Bonds (Querencia at       Barton Creek Proj), Ser 2005A,
5.100%, 11-15-15			400		396
TX Private Activity Bond Surface Trans Corp, Sr Lien Rev Bonds (North       Tarrant Express Managed Lanes Proj), Ser 2009,
6.875%, 12-31-39			1,100		1,197
TX Private Activity Bond Surface Trans Corp, Sr Lien Rev Bonds (LBJ       Infrastructure Group LLC IH-635 Managed Lanes Proj), Ser 2010,
7.000%, 6-30-40			4,000		4,369
TX Pub Fin Auth Charter Sch Fin Corp, Ed Rev Bonds (Cosmos       Fndtn, Inc.), Ser 2010A,
6.200%, 2-15-40			2,000		2,081
TX Pub Fin Auth Charter Sch Fin Corp, Edu Rev Bonds (Odyssey       Academy, Inc.), Ser 2010A,
7.125%, 2-15-40			2,000		2,123
					25,503
Utah - 0.8%
Muni Bldg Auth of Uintah Cnty, UT, Lease Rev Bonds, Ser 2008A,
5.300%, 6-1-28			350		375
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Davis       Preparatory Academy), Ser 2010,
6.250%, 7-15-30			1,015		1,040
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (Paradigm       High Sch), Ser 2010,
6.375%, 7-15-40			750		762
					2,177
Virgin Islands - 0.4%
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note - Diageo       Proj), Ser 2009A,
6.625%, 10-1-29			935		1,085
Virginia - 2.4%
Econ Dev Auth of James City Cnty, VA, Residential Care Fac Rev       Bonds (VA Utd Methodist Homes of Williamsburg, Inc.), Ser 2007A:
5.150%, 7-1-17			475		393
5.400%, 7-1-27			1,190		801
5.500%, 7-1-37			1,600		1,003
Indl Dev Auth of Lexington, VA, Hosp Fac Rev Bonds (Stonewall Jackson       Hosp), Ser 2000:
7.000%, 7-1-25			715		725
7.000%, 7-1-30			905		915
Indl Dev Auth of Smyth Cnty, VA, Hosp Rev Bonds (Mountain States Hlth       Alliance), Ser 2009A,
8.000%, 7-1-38			535		630
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States       Hlth Alliance), Ser 2009C:
7.250%, 7-1-19			940		1,085
7.500%, 7-1-29			25		29
Norfolk Redev and Hsng Auth, Multifamily Rental Hsng Fac Rev Bonds       (1016 Ltd Partnship - Sussex Apartments Proj), Ser 1996,
8.000%, 9-1-26			475		476
Tob Settlement Fin Corp, Tob Settlement Asset-Bkd Bonds, Ser 2007B-1,
5.000%, 6-1-47			250		170
					6,227
Washington - 1.4%
Pub Hosp Dist No. 1, Skagit Cnty, WA (Skagit Vly Hosp), Hosp Rev       Bonds, Ser 2005,
5.375%, 12-1-22			500		512
Pub Hosp Dist No. 1, Skagit Cnty, WA (Skagit Vly Hosp), Hosp Rev       Bonds, Ser 2007,
5.625%, 12-1-25			500		516
WA Hlth Care Fac Auth (Cent WA Hlth Svcs Assoc), Rev Bonds, Ser 2009:
6.250%, 7-1-24			685		743
7.000%, 7-1-31			1,430		1,571
WA Hlth Care Fac Auth, Rev Bonds (Seattle Cancer Care Alliance),       Ser 2008,
7.375%, 3-1-38			155		177
					3,519
Wisconsin - 1.0%
WI Hlth and Edu Fac Auth, Rev Bonds (Beloit College), Ser 2010A:
6.125%, 6-1-35			120		127
6.125%, 6-1-39			250		263
WI Hlth and Edu Fac Auth, Rev Bonds (Saint John's Communities, Inc.),       Ser 2009:
7.250%, 9-15-29			1,000		1,065
7.625%, 9-15-39			1,000		1,079
					2,534
TOTAL MUNICIPAL BONDS - 90.7%				$	234,030
(Cost: $226,460)

SHORT-TERM SECURITIES	Principal			Value
Commercial Paper (D) - 9.7%
Clorox Co.:
0.370%, 10-21-10		$	2,090	$	2,090
0.340%, 11-4-10			3,000		2,999
General Mills, Inc.:
0.290%, 10-18-10			3,000		2,999
0.280%, 10-25-10			3,000		2,999
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
0.230%, 10-4-10			5,000		5,000
IBM International Group Capital LLC (International Business Machines       Corporation),
0.000%, 10-1-10			1,655		1,655
Kellogg Co.,
0.240%, 10-5-10			5,000		5,000
Sonoco Products Co.,
0.000%, 10-1-10			2,236		2,236
					24,978
Master Note - 0.3%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (E)			873		873
Municipal Obligations - 0.8%
Los Angeles, CA, Wastewater Sys Sub Rev Bonds, Var Rate Rfdg,       Ser 2008-G (Bank of America, N.A.),
0.260%, 10-1-10 (E)			2,000		2,000
TOTAL SHORT-TERM SECURITIES - 10.8%				$	27,851
(Cost: $27,851)
TOTAL INVESTMENT SECURITIES - 101.5%				$	261,881
(Cost: $254,311)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.5%)					(3,829	)
NET ASSETS - 100.0%				$	258,052

Notes to Schedule of Investments

(A)Purchased on a when-issued basis with settlement subsequent to September 30, 2010.

(B)Zero coupon bond.

(C)Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy.

(D)Rate shown is the yield to maturity at September 30, 2010.

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Pacific Opportunities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	90.8%
Financials	25.9%
Industrials	17.3%
Information Technology	14.8%
Energy	7.2%
Materials	6.9%
Consumer Discretionary	5.5%
Consumer Staples	5.3%
Utilities	3.9%
Telecommunication Services	2.0%
Health Care	2.0%
Cash and Cash Equivalents	9.2%

Lipper Rankings

Category: Lipper Pacific Ex Japan Funds	Rank	Percentile
1 Year	42/50	83
3 Year	19/36	52
5 Year	14/31	44
10 Year	19/26	71

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

Pacific Basin	87.9%
China	28.5%
South Korea	15.8%
India	11.2%
Taiwan	10.1%
Hong Kong	9.1%
Singapore	8.0%
Other Pacific Basin	5.2%
Europe	1.5%
Bahamas/Caribbean	1.4%
Cash and Cash Equivalents	9.2%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Industrial and Commercial Bank of       China Limited, H Shares	China	Financials	Diversified Banks
Daelim Industrial Co., Ltd.	South Korea	Industrials	Construction & Engineering
Zhuzhou CSR Times Electric Co.,       Ltd., H Shares	China	Industrials	Electrical Components &       Equipment
Hon Hai Precision Ind. Co., Ltd.	Taiwan	Information       Technology	Electronic Manufacturing       Services
LG Chem, Ltd.	South Korea	Materials	Commodity Chemicals
China Yurun Food Group Limited	China	Consumer       Staples	Packaged Foods & Meats
Fubon Financial Holding Co., Ltd.	Taiwan	Financials	Other Diversified Financial       Services
Woori Finance Holdings Co., Ltd.	South Korea	Financials	Diversified Banks
Beijing Enterprises Holdings Limited	Hong Kong	Industrials	Industrial Conglomerates
DBS Group Holdings Ltd	Singapore	Financials	Diversified Banks

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Pacific Opportunities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,068.70	1.75%	$	9.10
Class B	$1,000	$1,062.50	2.85%	$	14.75
Class C	$1,000	$1,064.50	2.48%	$	12.90
Class E**	$1,000	$1,070.10	1.36%	$	7.04
Class I	$1,000	$1,071.20	1.25%	$	6.52
Class Y	$1,000	$1,070.30	1.51%	$	7.87
Based on 5% Return(2)
Class A	$1,000	$1,016.29	1.75%	$	8.87
Class B	$1,000	$1,010.78	2.85%	$	14.38
Class C	$1,000	$1,012.62	2.48%	$	12.58
Class E**	$1,000	$1,018.23	1.36%	$	6.86
Class I	$1,000	$1,018.81	1.25%	$	6.36
Class Y	$1,000	$1,017.51	1.51%	$	7.67

*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, 2010, and divided by 365.

**Class closed to investment.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Pacific Opportunities Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Cayman Islands - 1.4%
AutoNavi Holdings Limited, ADR (A)		133	$	2,325
China ITS (Holdings) Co., Ltd. (A)(B)(C)		2,815		1,469
China Kanghui Holdings, ADR (A)		250		3,543
China Ming Yang Wind Power Group Limited, ADR (A)		250		3,500
				10,837
China - 28.5%
BYD Company Limited, H Shares (C)		1,005		8,072
Camelot Information Systems Inc., ADR (A)		342		6,013
China BlueChemical Ltd., H Shares (C)		10,876		7,906
China Coal Energy Company Limited (C)		5,013		8,296
China Merchants Bank Co., Ltd, H Shares (B)(C)		2,938		7,573
China Minsheng Banking Corp Ltd., H Shares (C)		8,286		7,422
China Mobile Limited (C)(D)		982		10,050
China Mobile Limited (C)		465		4,762
China Oilfield Services Limited (C)		5,796		9,069
China Resources Power Holdings Company Limited (C)		6,703		14,409
China Yurun Food Group Limited (B)(C)		4,026		14,944
CNinsure Inc., ADR		163		3,805
Dongfeng Motor Group Company Limited, H Shares (C)		5,056		10,348
Industrial and Commercial Bank of China Limited, H Shares (C)		27,523		20,504
PetroChina Company Limited, H Shares (C)		10,412		12,118
Renhe Commercial Holdings Company Limited (B)(C)		33,334		6,230
Shanda Games Limited, ADR (A)		800		4,288
Shanda Interactive Entertainment Limited, ADR (A)		61		2,387
SINA Corporation (A)		166		8,393
Tencent Holdings Limited (C)		521		11,393
Winsway Coking Coal Holdings Limited, H Shares (A)(C)(D)		12,000		5,722
Yingde Gases Group Company Limited (A)(C)		2,536		2,396
Yingde Gases Group Company Limited (A)(B)(C)		5,900		5,574
Yingli Green Energy Holding Company Limited, ADR (A)		227		3,136
Zhuzhou CSR Times Electric Co., Ltd., H Shares (C)		5,537		17,770
				212,580
Hong Kong - 9.1%
Beijing Enterprises Holdings Limited (C)		2,040		14,512
Boshiwa International Holding Limited (A)(B)(C)		780		752
China Metal Recycling (Holdings) Limited (B)(C)		4,800		4,888
China Metal Recycling (Holdings) Limited (C)		2,000		2,036
China Resources Cement Holdings Limited (A)(C)		4,416		2,601
Evergrande Real Estate Group Limited (C)		31,543		10,651
Guangdong Investment Limited (C)		20,770		10,842
L'Occitane International S.A. (A)(B)(C)		3,006		8,368
MicroPort Scientific Corporation (A)(B)(C)		3,200		3,568
Sinopharm Group Co. Ltd., H Shares (B)(C)		1,517		6,266
West China Cement Limited (A)(B)(C)		12,386		3,736
				68,220
India - 11.2%
Axis Bank Limited (C)		358		12,232
Crompton Greaves Limited (C)		1,129		7,860
Dr. Reddy's Laboratories Limited (C)		247		7,914
HCL Technologies Limited (C)		1,406		13,167
Jain Irrigation Systems Limited (C)		346		9,155
Lanco Infratech Limited (A)(C)		5,475		8,772
Nagarjuna Construction Company Limited (C)		2,037		7,113
State Bank of India (C)		144		10,379
Zee Entertainment Enterprises Limited (C)		1,106		7,392
				83,984
Indonesia - 1.5%
PT Bank Mandiri (Persero) Tbk (C)		5,106		4,119
PT Bank Rakyat Indonesia (C)		6,317		7,078
				11,197
Malaysia - 2.0%
Gamuda Berhad (C)		6,355		7,987
Genting Berhad (C)		2,068		6,645
				14,632
Singapore - 8.0%
Cambridge Industrial Trust (B)(C)		9,500		3,937
DBS Group Holdings Ltd (C)		1,346		14,411
Keppel Corporation Limited (C)		1,490		10,175
SembCorp Industries Ltd (C)		2,203		7,305
United Overseas Bank Limited (C)		945		13,164
Wilmar International Limited (C)		2,345		10,717
				59,709
South Korea - 15.8%
Daelim Industrial Co., Ltd. (C)		267		19,754
Hyundai Development Company - Engineering & Construction (C)		399		10,565
Hyundai Motor Company (C)		54		7,204
LG Chem, Ltd. (C)		52		15,074
LG Corp. (C)		116		8,374
LG Display Co., Ltd. (C)		218		7,539
POSCO (C)		17		7,480
Samsung Electronics Co., Ltd. (C)		18		12,518
Samsung Life Insurance Co., Ltd. (B)(C)		77		6,998
SK Energy Co., Ltd. (C)		64		8,119
Woori Finance Holdings Co., Ltd. (C)		1,174		14,620
				118,245
Taiwan - 10.1%
Acer Incorporated (C)		2,800		7,115
Asustek Computer Inc. (C)		980		7,027
First Commercial Bank Co., Ltd. (C)		12,142		8,045
Fubon Financial Holding Co., Ltd. (C)		12,031		14,806
Hon Hai Precision Ind. Co., Ltd. (C)		4,170		15,682
Taiwan Semiconductor Manufacturing Company Ltd. (C)		4,254		8,443
Yuanta Financial Holdings Co., Ltd. (C)		23,630		14,371
				75,489
Thailand - 1.4%
Banpu Public Company Limited, Registered Shares (C)		452		10,716
United Kingdom - 1.5%
Standard Chartered plc (C)		384		11,372
TOTAL COMMON STOCKS - 90.5%			$	676,981
(Cost: $537,808)

INVESTMENT FUNDS - 0.3%
Vietnam
Vietnam Azalea Fund Limited (A)(E)(F)		500	$	2,170
(Cost: $3,304)
WARRANTS - 0.0%
Malaysia
Gamuda Berhad		794	$	365
(Cost: $24)
SHORT-TERM SECURITIES	Principal
Commercial Paper (G) - 4.2%
Straight-A Funding, LLC (Federal Financing Bank):
0.210%, 11-5-10		$ 7,000		6,999
0.210%, 11-12-10		5,000		4,999
W.W. Grainger, Inc.,
0.160%, 10-5-10		19,000		18,999
				30,997

Commercial Paper (backed by irrevocable bank letter of credit) (G) - 0.9%
COFCO Capital Corp. (Rabobank Nederland),
0.280%, 10-20-10	7,000			6,999
Master Note - 0.5%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (H)		3,587		3,587
TOTAL SHORT-TERM SECURITIES - 5.6%			$	41,583
(Cost: $41,583)
TOTAL INVESTMENT SECURITIES - 96.4%			$	721,099
(Cost: $582,719)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 3.6%				27,163
NET ASSETS - 100.0%			$	748,262

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2010:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)	Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Sell	Japanese Yen	Deutsche Bank AG	4,490,000	11-12-10		$	––	$1,467

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

(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $74,303 or 9.9% of net assets.

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

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2010, the total value of these securities amounted to $15,772 or 2.1% of net assets.

(E)Illiquid restricted security. At September 30, 2010, the Fund owned the following restricted security:

Security	Acquisition Date(s)	Shares		Cost	Market Value
Vietnam Azalea Fund Limited	6-14-07 to 1-28-09	500	$	3,304	$2,170

The total value of this security represented 0.3% of net assets at September 30, 2010.

(F)Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. The Fund and other mutual funds managed by its investment manager, Ivy Investment Management Company, or other related parties together own 30% of the outstanding shares of this security at September 30, 2010.

(G)Rate shown is the yield to maturity at September 30, 2010.

(H)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date the variable rate resets.

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

Market Sector Diversification		Market Sector Diversification (Continued)
(as a % of net assets)		(as a % of net assets) (Continued)
Financials	25.9%	Consumer Staples	5.3%
Industrials	17.3%	Utilities	3.9%
Information Technology	14.8%	Health Care	2.0%
Energy	7.2%	Telecommunication Services	2.0%
Materials	6.9%	Other+	9.2%
Consumer Discretionary	5.5%

+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Small Cap Growth Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	96.8%
Information Technology	29.8%
Consumer Discretionary	22.4%
Industrials	15.3%
Financials	11.2%
Health Care	9.9%
Energy	5.9%
Consumer Staples	2.0%
Materials	0.3%
Cash and Cash Equivalents	3.2%

Lipper Rankings

Category: Lipper Small-Cap Growth Funds	Rank	Percentile
1 Year	19/530	4
3 Year	37/467	8
5 Year	81/396	21
10 Year	52/223	24

Past performance is no guarantee of future results. Rankings are for Class C shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
MICROS Systems, Inc.	Information Technology
Stratasys, Inc.	Information Technology
Portfolio Recovery Associates, Inc.	Financials
Zumiez Inc.	Consumer Discretionary
Under Armour, Inc., Class A	Consumer Discretionary
Greenhill & Co., Inc.	Financials
Volcano Corporation	Health Care
Core Laboratories N.V.	Energy
O'Reilly Automotive, Inc.	Consumer Discretionary
Graco Inc.	Industrials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Small Cap Growth Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,078.10	1.55%	$	8.10
Class B	$1,000	$1,071.90	2.59%	$	13.47
Class C	$1,000	$1,074.40	2.21%	$	11.51
Class E	$1,000	$1,078.20	1.56%	$	8.10
Class I	$1,000	$1,081.40	1.08%	$	5.62
Class R	$1,000	$1,078.10	1.63%	$	8.52
Class Y	$1,000	$1,079.40	1.33%	$	6.97
Based on 5% Return(2)
Class A	$1,000	$1,017.32	1.55%	$	7.87
Class B	$1,000	$1,012.08	2.59%	$	13.08
Class C	$1,000	$1,013.99	2.21%	$	11.18
Class E	$1,000	$1,017.25	1.56%	$	7.87
Class I	$1,000	$1,019.64	1.08%	$	5.45
Class R	$1,000	$1,016.90	1.63%	$	8.27
Class Y	$1,000	$1,018.39	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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Small Cap Growth Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Aerospace & Defense - 2.3%
Ladish Co., Inc. (A)		381	$	11,870
Apparel Retail - 3.5%
Zumiez Inc. (A)		843		17,840
Apparel, Accessories & Luxury Goods - 5.2%
Columbia Sportswear Company		104		6,101
True Religion Apparel, Inc. (A)		149		3,184
Under Armour, Inc., Class A (A)		394		17,762
				27,047
Application Software - 10.2%
ACI Worldwide, Inc. (A)		526		11,775
FactSet Research Systems, Inc.		142		11,506
Solera Holdings, Inc.		305		13,450
SuccessFactors, Inc. (A)		404		10,134
Ultimate Software Group, Inc. (The) (A)		139		5,356
				52,221
Auto Parts & Equipment - 4.6%
Gentex Corporation		625		12,190
LKQ Corporation (A)		546		11,361
				23,551
Automotive Retail - 2.8%
O'Reilly Automotive, Inc. (A)		267		14,178
Communications Equipment - 3.5%
Acme Packet, Inc. (A)		238		9,022
Aruba Networks, Inc. (A)		418		8,929
				17,951
Computer Hardware - 3.8%
Stratasys, Inc. (A)		706		19,561
Construction & Farm Machinery & Heavy Trucks - 2.6%
Westinghouse Air Brake Technologies Corporation		277		13,257
Consumer Finance - 1.1%
First Cash Financial Services, Inc. (A)		210		5,828
Education Services - 5.1%
Capella Education Company (A)		173		13,449
K12 Inc. (A)		436		12,663
				26,112
Electronic Components - 1.7%
DTS, Inc. (A)		233		8,887
Electronic Equipment & Instruments - 2.1%
OSI Systems, Inc. (A)		303		10,987
Environmental & Facilities Services - 2.5%
Waste Connections, Inc. (A)		323		12,794
Gold - 0.3%
Alamos Gold Inc. (B)		103		1,747
Health Care Equipment - 6.7%
NuVasive, Inc. (A)		221		7,769
ResMed Inc. (A)		328		10,775
Volcano Corporation (A)		608		15,799
				34,343
Health Care Services - 0.2%
Healthways, Inc. (A)		82		957
Health Care Supplies - 0.3%
Merit Medical Systems, Inc. (A)		101		1,603
Industrial Machinery - 2.7%
Graco Inc.		439		13,920
Investment Banking & Brokerage - 3.2%
Greenhill & Co., Inc.		209		16,570
Life Sciences Tools & Services - 2.7%
Illumina, Inc. (A)		282		13,855
Oil & Gas Equipment & Services - 5.9%
CARBO Ceramics Inc.		74		5,954
Core Laboratories N.V.		166		14,623
Dril-Quip, Inc. (A)		157		9,726
				30,303
Personal Products - 2.0%
Alberto-Culver Company		275		10,342
Regional Banks - 3.3%
Columbia Banking System, Inc.		401		7,879
SVB Financial Group (A)		217		9,196
				17,075
Research & Consulting Services - 1.2%
CoStar Group, Inc. (A)		130		6,337
Restaurants - 1.2%
Buffalo Wild Wings, Inc. (A)		132		6,331
Semiconductor Equipment - 0.3%
Teradyne, Inc. (A)		136		1,518
Semiconductors - 4.1%
Cavium Networks, Inc. (A)		361		10,379
Semtech Corporation (A)		528		10,667
				21,046
Specialized Finance - 3.6%
Portfolio Recovery Associates, Inc. (A)		277		17,920
Systems Software - 4.1%
MICROS Systems, Inc. (A)		493		20,852
Trucking - 4.0%
Knight Transportation, Inc.		582		11,251
Landstar System, Inc.		235		9,056
				20,307
TOTAL COMMON STOCKS - 96.8%			$	497,110
(Cost: $384,368)

SHORT-TERM SECURITIES	Principal			Value
Commercial Paper (C) - 2.8%
Hewlett-Packard Company,
0.150%, 10-4-10		$	3,000	$	3,000
Kellogg Co.,
0.240%, 10-5-10			5,000		5,000
McCormick & Co. Inc.,
0.000%, 10-1-10			3,294		3,294
W.W. Grainger, Inc.,
0.160%, 10-6-10			3,000		3,000
					14,294
Master Note - 0.8%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (D)			4,266		4,266
TOTAL SHORT-TERM SECURITIES - 3.6%				$	18,560
(Cost: $18,560)
TOTAL INVESTMENT SECURITIES - 100.4%				$	515,670
(Cost: $402,928)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.4%)					(1,914	)
NET ASSETS - 100.0%				$	513,756

Notes to Schedule of Investments

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

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

(C)Rate shown is the yield to maturity at September 30, 2010.

(D)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Small Cap Value Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	97.5%
Financials	30.8%
Consumer Discretionary	17.1%
Information Technology	15.0%
Industrials	13.8%
Health Care	5.9%
Materials	5.2%
Energy	4.2%
Utilities	4.1%
Consumer Staples	1.4%
Cash and Cash Equivalents	2.5%

Lipper Rankings

Category: Lipper Small-Cap Value Funds	Rank	Percentile
1 Year	97/254	39
3 Year	33/222	15
5 Year	50/176	29
10 Year	51/84	60

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Gaylord Entertainment Company	Consumer Discretionary
Tenneco Automotive Inc.	Consumer Discretionary
Southwest Gas Corporation	Utilities
iGate Corporation	Information Technology
CBL & Associates Properties, Inc.	Financials
Timken Company (The)	Industrials
NV Energy, Inc.	Utilities
Triumph Group, Inc.	Industrials
THL Credit, Inc.	Financials
AAR CORP.	Industrials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Small Cap Value Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10			Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000		$	984.00	1.71%	$	8.53
Class B	$1,000		$	977.80	2.96%	$	14.73
Class C	$1,000		$	979.60	2.48%	$	12.27
Class E**	$1,000		$	986.20	1.25%	$	6.16
Class I	$1,000		$	987.10	1.13%	$	5.66
Class Y	$1,000		$	985.70	1.40%	$	6.95
Based on 5% Return(2)
Class A	$1,000		$	1,016.49	1.71%	$	8.67
Class B	$1,000		$	1,010.21	2.96%	$	14.98
Class C	$1,000		$	1,012.64	2.48%	$	12.48
Class E**	$1,000		$	1,018.82	1.25%	$	6.26
Class I	$1,000		$	1,019.41	1.13%	$	5.76
Class Y	$1,000		$	1,018.06	1.40%	$	7.06

*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, 2010, and divided by 365.

**Class closed to investment.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Small Cap Value Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares			Value
Advertising - 1.4%
MDC Partners Inc., Class A			245	$	3,274
Aerospace & Defense - 4.0%
AAR CORP. (A)			244		4,561
Triumph Group, Inc.			64		4,751
					9,312
Apparel, Accessories & Luxury Goods - 1.5%
Jones Apparel Group, Inc.			178		3,498
Application Software - 3.0%
Quest Software, Inc. (A)			152		3,742
TIBCO Software Inc. (A)			192		3,410
					7,152
Auto Parts & Equipment - 3.3%
Superior Industries International, Inc.			136		2,350
Tenneco Automotive Inc. (A)			193		5,591
					7,941
Broadcasting - 3.5%
Belo Corp., Class A (A)			360		2,229
E. W. Scripps Company (The) (A)			379		2,983
Entercom Communications Corp. (A)			414		3,256
					8,468
Casinos & Gaming - 0.7%
Bally Technologies, Inc. (A)			48		1,685
Communications Equipment - 0.3%
Tellabs, Inc.			107		798
Computer Storage & Peripherals - 0.3%
Quantum Corporation (A)			348		737
Diversified Chemicals - 1.2%
Ashland Inc.			58		2,819
Electric Utilities - 2.0%
NV Energy, Inc.			362		4,763
Electronic Manufacturing Services - 2.1%
Celestica Inc. (A)			382		3,221
Sanmina-SCI Corporation (A)			152		1,840
					5,061
Gas Utilities - 2.1%
Southwest Gas Corporation			148		4,960
Health Care Facilities - 2.6%
AmSurg Corp. (A)			87		1,517
LifePoint Hospitals, Inc. (A)			89		3,135
Sun Healthcare Group, Inc. (A)			177		1,500
					6,152
Homebuilding - 1.5%
M.D.C. Holdings, Inc.			64		1,870
M/I Homes, Inc. (A)			156		1,617
					3,487
Hotels, Resorts & Cruise Lines - 2.9%
Gaylord Entertainment Company (A)			227		6,927
Human Resource & Employment Services - 3.1%
Kforce Inc. (A)			254		3,490
TrueBlue, Inc. (A)			290		3,960
					7,450
Industrial Machinery - 3.4%
IDEX Corporation			93		3,317
Timken Company (The)			126		4,814
					8,131
Investment Banking & Brokerage - 1.7%
Piper Jaffray Companies (A)			62		1,813
Stifel Financial Corp. (A)			47		2,157
					3,970
IT Consulting & Other Services - 3.1%
Camelot Information Systems Inc., ADR (A)			149		2,625
iGate Corporation			267		4,843
					7,468
Life Sciences Tools & Services - 2.3%
ICON plc, ADR (A)			150		3,240
PAREXEL International Corporation (A)			92		2,133
					5,373
Managed Health Care - 1.0%
Coventry Health Care, Inc. (A)			111		2,396
Metal & Glass Containers - 1.7%
Silgan Holdings Inc.			131		4,146
Movies & Entertainment - 1.4%
Regal Entertainment Group			248		3,249
Office REITs - 0.3%
Lexington Corporation Properties Trust			86		614
Oil & Gas Equipment & Services - 1.3%
Superior Energy Services, Inc. (A)			118		3,152
Oil & Gas Storage & Transportation - 2.9%
Blueknight Energy Partners, L.P. (A)			110		959
MarkWest Energy Partners, L.P.			50		1,785
Regency Energy Partners LP			170		4,164
					6,908
Personal Products - 1.4%
Inter Parfums, Inc.			192		3,377
Property & Casualty Insurance - 0.1%
Argo Group International Holdings, Ltd.			7		250
Publishing - 0.9%
Washington Post Company, Class B (The)			5		2,077
Regional Banks - 13.4%
Bank of Marin Bancorp			79		2,541
Columbia Banking System, Inc.			132		2,584
East West Bancorp, Inc.			225		3,656
First Horizon National Corporation (A)			304		3,467
IBERIABANK Corporation			86		4,299
Nara Bancorp, Inc. (A)			345		2,437
PrivateBancorp, Inc.			155		1,767
Synovus Financial Corp.		1,044			2,569
Texas Capital Bancshares, Inc. (A)			157		2,711
Whitney Holding Corporation			194		1,588
Wintrust Financial Corporation			124		4,013
					31,632
Reinsurance - 3.6%
Reinsurance Group of America, Incorporated			86		4,153
RenaissanceRe Holdings Ltd.			74		4,407
					8,560
Residential REITs - 2.8%
American Campus Communities, Inc.			148		4,490
Apartment Investment and Management Company, Class A			99		2,110
					6,600
Retail REITs - 2.0%
CBL & Associates Properties, Inc.			369		4,823
Semiconductors - 1.7%
Atmel Corporation (A)			498		3,962
Specialized REITs - 1.0%
Strategic Hotels & Resorts, Inc. (A)			575		2,438
Specialty Chemicals - 2.3%
RPM International Inc.			88		1,745
Sensient Technologies Corporation			118		3,586
					5,331
Technology Distributors - 4.5%
Arrow Electronics, Inc. (A)			89		2,390
Avnet, Inc. (A)			122		3,301
Insight Enterprises, Inc. (A)			154		2,404
Tech Data Corporation (A)			59		2,394
					10,489
Trucking - 3.3%
Marten Transport, Ltd.			146		3,384
Werner Enterprises, Inc. (B)			214		4,385
					7,769
TOTAL COMMON STOCKS - 91.6%				$	217,199
(Cost: $183,011)

INVESTMENT FUNDS - 5.9%
Asset Management & Custody Banks
Ares Capital Corporation			189		2,962
Hercules Technology Growth Capital, Inc.			357		3,609
MCG Capital Corporation			491		2,867
THL Credit, Inc.			390		4,594
(Cost: $12,827)				$	14,032
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) - 1.5%
Illinois Tool Works Inc.,
0.140%, 10-4-10	$1,145				1,145
McCormick & Co. Inc.,
0.000%, 10-1-10	2,300				2,300
					3,445
Master Note - 0.8%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (D)		1,944			1,944
TOTAL SHORT-TERM SECURITIES - 2.3%				$	5,389
(Cost: $5,389)
TOTAL INVESTMENT SECURITIES - 99.8%				$	236,620
(Cost: $201,227)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.2%					561
NET ASSETS - 100.0%				$	237,181

Notes to Schedule of Investments

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

(B)Securities serve as cover or collateral for the following written options outstanding at September 30, 2010:

Underlying Security	Counterparty	Contracts Subject to Call		Expiration Month	Exercise Price	Premium Received			Market Value
Ashland Inc.	Goldman, Sachs &       Company	1		October 2010	$60.00		$	23	$(3	)
Inter Parfums, Inc.	Morgan Stanley       Smith Barney LLC	––	*	October 2010	20.00			17	––	*
PAREXEL International       Corporation	Morgan Stanley       Smith Barney LLC	1		December 2010	28.00			35	(41	)
Sensient Technologies       Corporation	Goldman, Sachs &       Company	1		October 2010	30.00			34	(120	)
Tenneco Automotive Inc.	Goldman, Sachs &       Company	––	*	October 2010	30.00			21	(43	)
							$	130	$(207	)

Underlying Security	Counterparty	Contracts Subject to Put		Expiration Month	Exercise Price		Premium Received			Market Value
Gaylord Entertainment       Company	Goldman, Sachs &       Company	––	*	October 2010	$	20.00		$	13	$(5	)
Reinsurance Group of       America, Incorporated	Goldman, Sachs &       Company	––	*	October 2010		40.00			20	(3	)
								$	33	$(8	)

*Not shown due to rounding.

(C)Rate shown is the yield to maturity at September 30, 2010.

(D)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Tax-Managed Equity Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	93.8%
Information Technology	29.6%
Consumer Discretionary	22.6%
Industrials	10.1%
Health Care	8.8%
Consumer Staples	7.2%
Financials	6.7%
Energy	6.2%
Materials	2.6%
Cash and Cash Equivalents	6.2%

Lipper Rankings

Category: Lipper Large-Cap Growth Funds	Rank	Percentile
1 Year	772/852	91

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Apple Inc.	Information Technology
NetApp, Inc.	Information Technology
Schlumberger Limited	Energy
Google Inc., Class A	Information Technology
Amazon.com, Inc.	Consumer Discretionary
Cisco Systems, Inc.	Information Technology
Wynn Resorts, Limited	Consumer Discretionary
Microsoft Corporation	Information Technology
Halliburton Company	Energy
Allergan, Inc.	Health Care

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

BEFORE- AND AFTER-TAX RETURNS

Ivy Tax-Managed Equity Fund

(UNAUDITED)

Before- and After-Tax Returns(1)	1-year period ended 9-30-10			5-year period ended 9-30-10			10-year period ended 9-30-10			Since inception of Class(2) through 9-30-10
Class A
Before Taxes		-0.22	%		––	%		––	%		10.37	%
After Taxes on Distributions		-0.22	%		––	%		––	%		10.37	%
After Taxes on Distributions and             Sale of Fund Shares		-0.15	%(3)		––	%		––	%		8.84	%
Class B
Before Taxes		1.17	%		––	%		––	%		11.65	%
After Taxes on Distributions		1.17	%		––	%		––	%		11.65	%
After Taxes on Distributions and             Sale of Fund Shares		0.76	%		––	%		––	%		9.94	%
Class C
Before Taxes		5.17	%		––	%		––	%		14.44	%
After Taxes on Distributions		5.17	%		––	%		––	%		14.44	%
After Taxes on Distributions and             Sale of Fund Shares		3.36	%		––	%		––	%		12.32	%
Class I
Before Taxes		6.26	%		2.70	%		0.43	%		N/A
After Taxes on Distributions		6.26	%		2.70	%		0.40	%		N/A
After Taxes on Distributions and             Sale of Fund Shares		4.07	%		2.31	%		0.35	%		N/A
Class Y(4)
Before Taxes		5.86	%		––	%		––	%		15.25	%
After Taxes on Distributions		5.86	%		––	%		––	%		15.25	%
After Taxes on Distributions and             Sale of Fund Shares		3.81	%		––	%		––	%		13.01	%
Russell 1000 Growth Index		12.65	%		2.06	%		-3.44	%		N/A

(1)Data quoted is past performance and is based on deduction of the maximum applicable sales load for each of the periods. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Please visit www.ivyfunds.com for the Fund's most recent month-end performance. Class A shares carry a maximum front-end sales load of 5.75%. Class B and Class C shares carry a maximum contingent deferred sales charge (CDSC) of 5% and 1%, respectively. (Accordingly, the Class C shares reflect no CDSC since it only applies to Class C shares redeemed within twelve months after purchase.) Class I and Class Y shares are not subject to sales charges.

(2)5-18-09 for Class A, Class B, Class C and Class Y shares (the date on which shares were first acquired by shareholders).

(3)After-tax returns may be better than before-tax returns due to an assumed tax benefit from losses on a sale of the Fund's shares at the end of the period.

(4)The return shown for Class Y is hypothetical because there were no shares or assets for the period from July 28, 2009 through October 7, 2009. Class A data has been substituted for Class Y data during that period.

The table above shows average annual returns on a before-tax and after-tax basis. Returns Before Taxes shows the actual change in the value of the Fund shares over the periods shown, but does not reflect the impact of taxes on Fund distributions or the sale of Fund shares. The two after-tax returns take into account taxes that may be associated with owning Fund shares. Returns After Taxes on Distributions is the Fund's actual performance, adjusted by the effect of taxes on distributions made by the Fund during the period shown. Returns After Taxes on Distributions and Sale of Fund Shares is further adjusted to reflect the tax impact on any change in the value of Fund shares as if they had been sold on the last day of the period.

After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts, or to shares held by non-taxable entities.

The Class Y shares of Waddell & Reed Advisors Tax-Managed Equity Fund were reorganized as the Class I shares of Ivy Tax-Managed Equity Fund on May 18, 2009. The performance shown for periods prior to this date is that of the Class Y shares of Waddell & Reed Advisors Tax-Managed Equity Fund. Performance has not been restated to reflect the estimated annual operating expenses of the Ivy Tax-Managed Equity Fund. If those expenses were reflected, performance shown would differ.

ILLUSTRATION OF FUND EXPENSES

Ivy Tax-Managed Equity Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$971.20	2.62%	$12.91
Class B	$1,000	$967.40	3.14%	$15.44
Class C	$1,000	$967.40	3.16%	$15.64
Class I	$1,000	$973.20	2.11%	$10.46
Class Y	$1,000	$971.20	2.52%	$12.42
Based on 5% Return(2)
Class A	$1,000	$1,011.95	2.62%	$13.18
Class B	$1,000	$1,009.33	3.14%	$15.77
Class C	$1,000	$1,009.21	3.16%	$15.97
Class I	$1,000	$1,014.48	2.11%	$10.68
Class Y	$1,000	$1,012.45	2.52%	$12.68

*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, 2010, and divided by 365.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Tax-Managed Equity Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS		Shares				Value
Aerospace & Defense - 2.0%
Precision Castparts Corp.			1		$	138
Air Freight & Logistics - 1.3%
FedEx Corporation			1			86
Asset Management & Custody Banks - 1.0%
T. Rowe Price Group, Inc.			1			67
Automotive Retail - 1.5%
AutoZone, Inc. (A)			––	*		103
Biotechnology - 1.4%
Gilead Sciences, Inc. (A)			3			95
Casinos & Gaming - 4.2%
Las Vegas Sands, Inc. (A)			3			103
Wynn Resorts, Limited			2			179
						282
Communications Equipment - 4.6%
Cisco Systems, Inc. (A)			9			189
QUALCOMM Incorporated			3			125
						314
Computer Hardware - 8.2%
Apple Inc. (A)			1			406
Hewlett-Packard Company			4			159
						565
Computer Storage & Peripherals - 4.2%
NetApp, Inc. (A)			6			287
Construction & Farm Machinery & Heavy Trucks - 4.4%
Caterpillar Inc.			2			171
Deere & Company			2			130
						301
Consumer Finance - 1.4%
American Express Company			2			97
Department Stores - 2.0%
Kohl's Corporation (A)			3			141
Electrical Components & Equipment - 2.4%
Emerson Electric Co.			3			167
General Merchandise Stores - 1.4%
Target Corporation			2			99
Health Care Equipment - 0.4%
Intuitive Surgical, Inc. (A)			––	*		28
Home Improvement Retail - 3.0%
Home Depot, Inc. (The)			4			124
Lowe's Companies, Inc.			4			80
						204
Hotels, Resorts & Cruise Lines - 3.4%
Carnival Corporation			2			94
Starwood Hotels & Resorts Worldwide, Inc.			3			141
						235
Household Products - 1.2%
Colgate-Palmolive Company			1			85
Hypermarkets & Super Centers - 1.2%
Costco Wholesale Corporation			1			83
Industrial Gases - 1.2%
Praxair, Inc.			1			83
Internet Retail - 2.8%
Amazon.com, Inc. (A)			1			196
Internet Software & Services - 3.0%
Google Inc., Class A (A)			––	*		205
Investment Banking & Brokerage - 1.7%
Goldman Sachs Group, Inc. (The)			1			119
IT Consulting & Other Services - 2.3%
Cognizant Technology Solutions Corporation, Class A (A)			2			155
Life Sciences Tools & Services - 2.1%
Thermo Fisher Scientific Inc. (A)			3			146
Movies & Entertainment - 1.7%
Walt Disney Company (The)			3			114
Oil & Gas Equipment & Services - 6.2%
Halliburton Company			5			173
Schlumberger Limited			4			254
						427
Other Diversified Financial Services - 1.5%
JPMorgan Chase & Co.			3			105
Personal Products - 1.2%
Estee Lauder Companies Inc. (The), Class A			1			80
Pharmaceuticals - 4.9%
Allergan, Inc.			3			172
Ironwood Pharmaceuticals, Inc., Class A (A)			2			20
Teva Pharmaceutical Industries Limited, ADR			3			142
						334
Restaurants - 2.6%
Starbucks Corporation			4			92
YUM! Brands, Inc.			2			87
						179
Semiconductors - 3.3%
Altera Corporation			1			41
Broadcom Corporation, Class A			2			70
Microchip Technology Incorporated			4			119
						230
Soft Drinks - 3.6%
Coca-Cola Company (The)			3			146
PepsiCo, Inc.			2			103
						249
Specialized Finance - 1.1%
IntercontinentalExchange, Inc. (A)			1			75
Specialty Chemicals - 1.4%
Ecolab Inc.			2			97
Systems Software - 4.0%
Microsoft Corporation			7			175
Oracle Corporation			4			102
						277
TOTAL COMMON STOCKS - 93.8%					$	6,448
(Cost: $5,707)
SHORT-TERM SECURITIES - 8.5%	Principal
Master Note
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (B)			$ 587		$	587
(Cost: $587)
TOTAL INVESTMENT SECURITIES - 102.3%					$	7,035
(Cost: $6,294)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (2.3%)						(155	)
NET ASSETS - 100.0%					$	6,880

Notes to Schedule of Investments

*Not shown due to rounding.

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

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

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

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Value Fund

ALL DATA IS AS OF SEPTEMBER 30, 2010 (UNAUDITED)

Asset Allocation

Stocks	93.2%
Financials	24.8%
Energy	19.4%
Information Technology	12.7%
Consumer Discretionary	11.5%
Industrials	8.4%
Health Care	8.4%
Consumer Staples	4.7%
Materials	2.1%
Utilities	1.2%
Warrants	0.7%
Cash and Cash Equivalents	6.1%

Lipper Rankings

Category: Lipper Large-Cap Value Funds	Rank	Percentile
1 Year	170/530	33
3 Year	44/479	10
5 Year	96/419	23
10 Year	127/202	63

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Bank of America Corporation	Financials
Travelers Companies, Inc. (The)	Financials
Wells Fargo & Company	Financials
ConocoPhillips	Energy
Hewlett-Packard Company	Information Technology
McKesson Corporation	Health Care
Occidental Petroleum Corporation	Energy
Xerox Corporation	Information Technology
UnitedHealth Group Incorporated	Health Care
ACE Limited	Financials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Value Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2010	Beginning Account Value 3-31-10	Ending Account Value 9-30-10			Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000		$	967.90	1.66%	$	8.17
Class B	$1,000		$	960.30	3.24%	$	15.88
Class C	$1,000		$	964.10	2.47%	$	12.18
Class E**	$1,000		$	969.90	1.27%	$	6.30
Class I	$1,000		$	970.50	1.20%	$	5.91
Class Y	$1,000		$	969.20	1.44%	$	7.09
Based on 5% Return(2)
Class A	$1,000		$	1,016.75	1.66%	$	8.37
Class B	$1,000		$	1,008.84	3.24%	$	16.27
Class C	$1,000		$	1,012.68	2.47%	$	12.48
Class E**	$1,000		$	1,018.69	1.27%	$	6.46
Class I	$1,000		$	1,019.05	1.20%	$	6.06
Class Y	$1,000		$	1,017.85	1.44%	$	7.26

*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, 2010, and divided by 365.

**Class closed to investment.

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

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

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

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Value Fund (in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

COMMON STOCKS	Shares		Value
Advertising - 1.9%
Omnicom Group Inc.		34	$	1,323
Aerospace & Defense - 1.8%
Honeywell International Inc.		29		1,292
Apparel, Accessories & Luxury Goods - 1.5%
V.F. Corporation (A)		13		1,045
Biotechnology - 1.1%
Amgen Inc. (B)		14		772
Brewers - 0.9%
Molson Coors Brewing Company, Class B		14		642
Broadcasting - 0.3%
CBS Corporation, Class B (A)		13		200
Computer Hardware - 6.0%
Hewlett-Packard Company		66		2,776
International Business Machines Corporation (A)		11		1,435
				4,211
Consumer Finance - 2.2%
Capital One Financial Corporation (A)		39		1,550
Department Stores - 2.2%
Macy's Inc. (A)		67		1,556
Diversified Banks - 4.0%
Wells Fargo & Company		113		2,840
Diversified Chemicals - 2.1%
Dow Chemical Company (The)		54		1,477
Drug Retail - 2.6%
CVS Corporation		59		1,860
Electric Utilities - 1.2%
PPL Corporation		32		869
Health Care Distributors - 3.9%
McKesson Corporation		45		2,755
Hotels, Resorts & Cruise Lines - 4.8%
Carnival Corporation (A)		55		2,109
Marriott International, Inc., Class A		38		1,369
				3,478
Industrial Conglomerates - 2.2%
General Electric Company		94		1,524
Industrial Machinery - 1.7%
Ingersoll-Rand plc		35		1,239
Integrated Oil & Gas - 10.0%
ConocoPhillips		48		2,779
Marathon Oil Corporation		49		1,635
Occidental Petroleum Corporation		34		2,678
				7,092
Investment Banking & Brokerage - 2.2%
Morgan Stanley		64		1,572
IT Consulting & Other Services - 1.1%
Accenture plc, Class A		19		812
Managed Health Care - 3.4%
UnitedHealth Group Incorporated (A)		69		2,412
Office Electronics - 3.6%
Xerox Corporation		248		2,569
Oil & Gas Equipment & Services - 2.3%
National Oilwell Varco, Inc.		37		1,623
Oil & Gas Storage & Transportation - 7.1%
Energy Transfer Equity, L.P.		31		1,154
Enterprise Products Partners L.P.		30		1,182
MarkWest Energy Partners, L.P.		37		1,311
Regency Energy Partners LP		58		1,411
				5,058
Other Diversified Financial Services - 4.6%
Bank of America Corporation		249		3,268
Property & Casualty Insurance - 7.4%
ACE Limited		40		2,342
Travelers Companies, Inc. (The)		57		2,952
				5,294
Railroads - 2.7%
Union Pacific Corporation (A)		23		1,882
Regional Banks - 2.3%
Regions Financial Corporation		102		740
SunTrust Banks, Inc.		35		909
				1,649
Reinsurance - 2.1%
RenaissanceRe Holdings Ltd.		25		1,487
Specialty Stores - 0.8%
Office Depot, Inc. (B)		122		562
Systems Software - 2.0%
Symantec Corporation (B)		96		1,456
Tobacco - 1.2%
Philip Morris International Inc.		15		829
TOTAL COMMON STOCKS - 93.2%			$	66,198
(Cost: $59,265)
WARRANTS
Diversified Banks - 0.4%
Wells Fargo & Company		37		288
Other Diversified Financial Services - 0.3%
Bank of America Corporation		36		234
TOTAL WARRANTS - 0.7%			$	522
(Cost: $611)

SHORT-TERM SECURITIES	Principal
Commercial Paper (C) - 0.6%
Illinois Tool Works Inc.,
0.140%, 10-4-10		$ 433		433
Master Note - 5.5%
Toyota Motor Credit Corporation,
0.150%, 10-1-10 (D)	3,895			3,895
TOTAL SHORT-TERM SECURITIES - 6.1%			$	4,328
(Cost: $4,328)
TOTAL INVESTMENT SECURITIES - 100.0%			$	71,048
(Cost: $64,204)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.0%				20
NET ASSETS - 100.0%			$	71,068

Notes to Schedule of Investments

(A)Securities serve as cover or collateral for the following written options outstanding at September 30, 2010:

Underlying Security	Counterparty	Contracts Subject to Call	Expiration Month	Exercise Price	Premium Received			Market Value
Capital One Financial       Corporation	Goldman, Sachs       & Company	––*	December 2010	$44.00		$	7	$ (8	)
Carnival Corporation	Goldman, Sachs       & Company	––*	October 2010	35.00			3	(40	)
CBS Corporation,       Class B	Goldman, Sachs       & Company	––*	November 2010	18.00			2	(4	)
International Business       Machines       Corporation	Goldman, Sachs       & Company	––*	October 2010	140.00			5	––	*
Macy's Inc.	Goldman, Sachs       & Company	––*	November 2010	25.00			18	(21	)
Union Pacific       Corporation	Goldman, Sachs       & Company	––*	October 2010	80.00			3	(12	)
UnitedHealth Group       Incorporated:	Goldman, Sachs       & Company	––*	December 2010	38.00			16	(25	)
	Goldman, Sachs       & Company	––*	December 2010	39.00			15	(17	)
V.F. Corporation	Morgan Stanley       Smith Barney LLC	––*	November 2010	85.00			12	(15	)
						$	81	$(142	)

Underlying Security	Counterparty	Contracts Subject to Put	Expiration Month	Exercise Price	Premium Received			Market Value
Amgen Inc.	Morgan Stanley       Smith Barney LLC	––*	October 2010	$47.50		$	6	$––	*
CVS Corporation:	Goldman, Sachs       & Company	––*	October 2010	25.00			5	––	*
	Goldman, Sachs       & Company	––*	November 2010	22.50			4	(1	)
Hewlett-Packard       Company	Goldman, Sachs       & Company	––*	October 2010	34.00			3	––	*
Wells Fargo       & Company	Goldman, Sachs       & Company	––*	October 2010	21.00			8	(1	)
						$	26	$(2	)

*Not shown due to rounding.

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

(C)Rate shown is the yield to maturity at September 30, 2010.

(D)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2010. Date shown represents the date that the variable rate resets.

See Accompanying Notes to Financial Statements.

STATEMENT OF ASSETS AND LIABILITIES

Ivy Funds

AS OF SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Bond Fund		Ivy Capital Appreciation Fund				Ivy Core Equity Fund			Ivy Cundill Global Value Fund			Ivy Dividend Opportunities Fund			Ivy European Opportunities Fund			Ivy Global Bond Fund
ASSETS
Investments in unaffiliated       securities at market       value+	$	315,428		$	530,556		$	217,167		$	312,021		$	274,819		$	243,312		$	198,541
Investments at             Market Value		315,428			530,556			217,167			312,021			274,819			243,312			198,541
Unrealized appreciation       on forward foreign       currency contracts		––			––			––			293			––			––			46
Investment securities       sold receivable		9,110			4,496			––			1,624			––			2,340			342
Dividends and interest       receivable		2,074			450			265			974			482			1,281			2,566
Capital shares sold       receivable		701			844			333			156			870			296			1,171
Receivable from affiliates		3			8			3			30			9			––			216
Prepaid and other assets		58			71			62			55			56			51			50
Total Assets		327,374			536,425			217,830			315,153			276,236			247,280			202,932
LIABILITIES
Investment securities       purchased payable		48,048			––			10,050			21			4,788			214			29
Variation margin payable		4			––			––			––			––			––			––
Unrealized depreciation       on forward foreign       currency contracts		––			––			––			2,755			––			––			607
Capital shares redeemed       payable		558			551			355			653			441			350			286
Distributions payable		57			––			––			––			––			––			––
Trustees and Chief       Compliance Officer       fees payable		10			20			66			75			14			47			2
Overdraft due to custodian		354			289			45			399			62			106			38
Distribution and service       fees payable		3			3			3			4			12			3			2
Shareholder servicing       payable		60			145			69			145			85			123			43
Investment management       fee payable		4			10			4			9			5			6			4
Accounting services fee       payable		8			12			6			8			8			8			6
Other liabilities		102			39			19			37			23			35			17
Total Liabilities		49,208			1,069			10,617			4,106			5,438			892			1,034
Total Net Assets	$	278,166		$	535,356		$	207,213		$	311,047		$	270,798		$	246,388		$	201,898
NET ASSETS
Capital paid in (shares       authorized - unlimited)	$	271,146		$	728,528		$	188,290		$	365,646		$	277,385		$	409,321		$	192,826
Undistributed (distributions       in excess of) net       investment income		(318	)		15			(738	)		936			388			1,419			378
Accumulated net realized       gain (loss)		1,772		(241,493		)		1,716			(98,733	)		(42,555	)	(179,857		)		1,403
Net unrealized appreciation		5,566			48,306			17,945			43,198			35,580			15,505			7,291
Total Net Assets	$	278,166		$	535,356		$	207,213		$	311,047		$	270,798		$	246,388		$	201,898
CAPITAL SHARES OUTSTANDING:
Class A		22,260			37,706			11,337			18,987			14,582			8,324			11,414
Class B		737			822			549			1,414			890			391			615
Class C		3,056			4,571			11,001			3,084			3,055			779			4,259
Class E		282			283			127			40			187			3			N/A
Class I		86			20,122			408			495			450			1,655			1,630
Class Y		635			769			700			1,351			1,090			103			1,403
NET ASSET VALUE PER SHARE:
Class A	$10.28			$8.36			$8.91			$12.33			$13.39			$21.96			$10.45
Class B		10.28			7.60			8.06			11.88			13.26			20.93			10.45
Class C		10.28			7.66			8.20			11.91			13.31			21.08			10.45
Class E		10.28			8.39			8.90			12.35			13.35			22.07			N/A
Class I		10.28			8.45			9.57			12.50			13.41			22.12			10.45
Class Y		10.28			8.40			9.39			12.42			13.40			22.08			10.45
+COST
Investments in unaffiliated       securities at cost	$	309,689		$	482,250		$	199,225		$	266,316		$	239,238		$	227,830		$	190,690

See Accompanying Notes to Financial Statements.

STATEMENT OF ASSETS AND LIABILITIES

Ivy Funds

AS OF SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands, except per share amounts)	Ivy High Income Fund		Ivy International Balanced Fund				Ivy International Core Equity Fund			Ivy International Growth Fund			Ivy Large Cap Growth Fund			Ivy Limited- Term Bond Fund			Ivy Managed European/ Pacific Fund
ASSETS
Investments in unaffiliated       securities at market       value+	$	1,507,132		$	264,970		$	879,340		$	180,416		$	813,930		$	1,200,391		$	90
Investments in affiliated       securities at market       value+		––			––			––			––			––			––			84,413
Investments at             Market Value		1,507,132			264,970			879,340			180,416			813,930			1,200,391			84,503
Cash		2,038			439			––			77			––			––			––
Restricted cash		––			––			––			525			––			––			––
Unrealized appreciation       on forward foreign       currency contracts		522			––			––			––			––			––			––
Unrealized appreciation       on swap agreements		––			––			––			1,161			––			––			––
Investment securities       sold receivable		11,863			1,655			13,964			––			11,451			––			27
Dividends and interest       receivable		25,981			2,969			3,184			1,020			291			9,402			––	*
Capital shares sold receivable		13,243			252			2,587			132			11,749			8,077			208
Receivable from affiliates		4			5			8			2			358			2			––
Prepaid and other assets		120			46			87			47			85			111			46
Total Assets		1,560,903			270,336			899,170			183,380			837,864			1,217,983			84,784
LIABILITIES
Investment securities       purchased payable		50,061			2,025			23,382			3,093			11,134			––			105
Unrealized depreciation       on forward foreign       currency contracts		169			––			––			––			––			––			––
Capital shares redeemed       payable		1,802			280			832			1,229			13,622			4,246			100
Distributions payable		922			––			––			––			––			222			––
Trustees and Chief       Compliance Officer       fees payable		26			23			24			56			44			26			1
Overdraft due to custodian		––			––			260			––			539			1,712			7
Distribution and service       fees payable		16			3			7			9			6			14			1
Shareholder servicing       payable		297			89			229			64			221			202			14
Investment management       fee payable		24			5			20			4			16			15			––	*
Accounting services       fee payable		22			8			18			6			18			22			2
Other liabilities		403			40			99			20			52			37			13
Total Liabilities		53,742			2,473			24,871			4,481			25,652			6,496			243
Total Net Assets	$	1,507,161		$	267,863		$	874,299		$	178,899		$	812,212		$	1,211,487		$	84,541
NET ASSETS
Capital paid in (shares       authorized - unlimited)	$	1,365,903		$	299,566		$	840,383		$	232,870		$	756,865		$	1,158,579		$	97,492
Undistributed (distributions       in excess of) net       investment income		––			4,150			8,643			1,354			(535	)		(952	)		(263	)
Accumulated net realized       gain (loss)		57,885			(52,426	)		(31,204	)		(70,881	)		(92,673	)		3,081		(26,618		)
Net unrealized appreciation		83,373			16,573			56,477			15,556			148,555			50,779			13,930
Total Net Assets	$	1,507,161		$	267,863		$	874,299		$	178,899		$	812,212		$	1,211,487		$	84,541
CAPITAL SHARES OUTSTANDING:
Class A		90,736			13,386			32,483			4,095			38,979			68,754			9,675
Class B		4,816			550			1,231			149			849			2,395			210
Class C		37,287			1,560			6,922			1,084			4,319			23,634			258
Class E		330			98			154			3			93			76			24
Class I		28,855			2,626			10,848			633			14,911			5,835			26
Class R		N/A			N/A			N/A			N/A			1,285			N/A			N/A
Class Y		15,715			401			5,842			102			9,225			6,463			51
NET ASSET VALUE PER SHARE:
Class A	$8.48			$14.39			$15.37			$30.06			$11.65			$11.31			$8.26
Class B		8.48			14.13			14.01			27.12			10.32			11.31			8.13
Class C		8.48			14.21			14.03			27.07			10.73			11.31			8.16
Class E		8.48			14.40			15.44			30.09			11.65			11.31			8.28
Class I		8.48			14.51			15.47			30.35			11.93			11.31			8.32
Class R		N/A			N/A			N/A			N/A			11.53			N/A			N/A
Class Y		8.48			14.45			15.47			30.12			11.82			11.31			8.28
+COST
Investments in unaffiliated       securities at cost	$	1,423,903		$	248,483		$	822,907		$	166,067		$	665,375		$	1,149,611		$90
Investments in affiliated       securities at cost		––			––			––			––			––			––			70,483

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF ASSETS AND LIABILITIES

Ivy Funds

AS OF SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Managed International Opportunities Fund				Ivy Micro Cap Growth Fund			Ivy Mid Cap Growth Fund			Ivy Money Market Fund			Ivy Mortgage Securities Fund			Ivy Municipal Bond Fund			Ivy Municipal High Income Fund
ASSETS
Investments in unaffiliated       securities at market value+		$	109		$	47,579		$	358,525		$	240,490		$	131,451		$	96,972		$	261,881
Investments in affiliated       securities at market value+			169,826			––			––			––			––			––			––
Investments at Market Value			169,935			47,579			358,525			240,490			131,451			96,972			261,881
Cash			––			54			––			98			––			––			––
Investment securities sold       receivable			58			3,385			3,356			––			6,148			174			––
Dividends and interest receivable			––	*		1			197			382			540			1,220			3,194
Capital shares sold receivable			312			354			5,633			504			73			435			6,925
Variation margin receivable			––			––			––			––			6			––			––
Receivable from affiliates			––	*		21			43			485			2			––	*		35
Prepaid and other assets			51			36			65			60			46			48			74
Total Assets			170,356			51,430			367,819			242,019			138,266			98,849			272,109
LIABILITIES
Investment securities purchased       payable			127			1,964			3,123			––			24,813			3,326			13,017
Variation margin payable			––			––			––			––			1			––			––
Capital shares redeemed       payable			228			90			289			991			247			118			172
Distributions payable			––			––			––			––			27			24			116
Trustees and Chief Compliance       Officer fees payable			3			––	*		21			15			32			7			1
Overdraft due to custodian			10			––			121			––			5			73			692
Distribution and service fees       payable			1			––	*		3			1			1			1			2
Shareholder servicing payable			21			18			108			46			66			11			20
Investment management fee       payable			––	*		1			8			3			2			1			3
Accounting services fee       payable			4			3			9			8			5			4			6
Written options at market value+			––			––			104			––			––			––			––
Other liabilities			17			17			23			18			61			11			28
Total Liabilities			411			2,093			3,809			1,082			25,260			3,576			14,057
Total Net Assets		$	169,945		$	49,337		$	364,010		$	240,937		$	113,006		$	95,273		$	258,052
NET ASSETS
Capital paid in (shares       authorized - unlimited)		$	186,016		$	42,178		$	309,016		$	240,937		$	183,495		$	88,941		$	250,353
Undistributed (distributions       in excess of) net investment income			(439	)		(589	)		(704	)		––			(2,350	)		12			92
Accumulated net realized       gain (loss)			(32,840	)		2,692			(7,486	)		––	*		(48,124	)		(508	)		37
Net unrealized appreciation       (depreciation)			17,208			5,056			63,184			––			(20,015	)		6,828			7,570
Total Net Assets		$	169,945		$	49,337		$	364,010		$	240,937		$	113,006		$	95,273		$	258,052
CAPITAL SHARES OUTSTANDING:
Class A			18,306			2,807			14,037			183,546			11,907			5,544			23,094
Class B			378			44			558			9,430			394			181			607
Class C			550			124			2,029			43,927			784			2,368			10,414
Class E			22			N/A			117			4,034			37			N/A			N/A
Class I			22			47			999			N/A			90			45			16,225
Class R			N/A			N/A			583			N/A			N/A			N/A			N/A
Class Y			51			22			6,159			N/A			166			48			408
NET ASSET VALUE PER SHARE:
Class A		$8.80				$16.22			$14.87			$1.00			$8.45			$11.64			$5.08
Class B			8.70			15.94			13.34			1.00			8.45			11.64			5.08
Class C			8.72			16.05			13.85			1.00			8.45			11.64			5.08
Class E			8.80			N/A			14.72			1.00			8.45			N/A			N/A
Class I			8.82			16.26			15.41			N/A			8.45			11.64			5.08
Class R			N/A			N/A			14.81			N/A			N/A			N/A			N/A
Class Y			8.78			16.15			15.26			N/A			8.45			11.64			5.08
+COST
Investments in unaffiliated       securities at cost			$109		$	42,523		$	295,390		$	240,490		$	151,365		$	90,144		$	254,311
Investments in affiliated       securities at cost			152,617			––			––			––			––			––			––
Written options premiums       received at cost			––			––			153			––			––			––			––

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF ASSETS AND LIABILITIES

Ivy Funds

AS OF SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Pacific Opportunities Fund				Ivy Small Cap Growth Fund			Ivy Small Cap Value Fund			Ivy Tax- Managed Equity Fund			Ivy Value Fund
ASSETS
Investments in unaffiliated securities at market value+		$	718,929		$	515,670		$	236,620		$	7,035		$	71,048
Investments in affiliated securities at market value+			2,170			––			––			––			––
Investments at Market Value			721,099			515,670			236,620			7,035			71,048
Cash			––			––			––			2			––
Cash denominated in foreign currencies at market value+			20,742			––			––			––			––
Restricted cash			1,190			––			––			––			––
Investment securities sold receivable			27,030			2,886			1,366			108			292
Dividends and interest receivable			1,142			1			221			3			111
Capital shares sold receivable			1,029			1,436			459			2			275
Receivable from affiliates			––			5			––			6			25
Prepaid and other assets			72			70			51			47			45
Total Assets			772,304			520,068			238,717			7,203			71,796
LIABILITIES
Investment securities purchased payable			20,077			4,796			866			306			421
Unrealized depreciation on forward foreign currency       contracts			1,467			––			––			––			––
Capital shares redeemed payable			1,100			1,114			263			6			90
Trustees and Chief Compliance Officer fees payable			34			112			18			––	*		11
Overdraft due to custodian			111			105			21			––			8
Distribution and service fees payable			5			7			2			––	*		1
Shareholder servicing payable			246			127			113			2			34
Investment management fee payable			20			12			6			––			1
Accounting services fee payable			15			12			8			––			4
Written options at market value+			––			––			215			––			144
Other liabilities			967			27			24			9			14
Total Liabilities			24,042			6,312			1,536			323			728
Total Net Assets		$	748,262		$	513,756		$	237,181		$	6,880		$	71,068
NET ASSETS
Capital paid in (shares authorized - unlimited)		$	651,865		$	446,842		$	213,846		$	6,325		$	69,628
Undistributed (distributions in excess of) net       investment income			4,131			(3,106	)		(467	)		(46	)		192
Accumulated net realized loss			(44,386	)		(42,721	)		(11,539	)		(141	)		(5,559	)
Net unrealized appreciation			136,652			112,741			35,341			742			6,807
Total Net Assets		$	748,262		$	513,756		$	237,181		$	6,880		$	71,068
CAPITAL SHARES OUTSTANDING:
Class A			34,443			13,495			13,320			457			4,043
Class B			1,141			728			379			45			166
Class C			2,325			14,272			990			51			383
Class E			8			134			7			N/A			6
Class I			8,874			2,694			112			59			51
Class R			N/A			576			N/A			N/A			N/A
Class Y			560			9,524			1,315			46			81
NET ASSET VALUE PER SHARE:
Class A		$15.86			$12.29			$14.75			$10.47			$15.06
Class B			13.78			10.88			13.64			10.37			14.52
Class C			14.19			11.27			13.96			10.37			14.79
Class E			16.03			12.27			14.98			N/A			15.13
Class I			16.24			14.21			15.29			10.52			15.14
Class R			N/A			12.29			N/A			N/A			N/A
Class Y			16.14			13.87			15.11			10.47			15.10
+COST
Investments in unaffiliated securities at cost		$	579,415		$	402,928		$	201,227		$	6,294		$	64,204
Investments in affiliated securities at cost			3,304			––			––			––			––
Cash denominated in foreign currencies at cost			20,224			––			––			––			––
Written options premiums received at cost			––			––			163			––			107

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF OPERATIONS

Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands)	Ivy Bond Fund			Ivy Capital Appreciation Fund			Ivy Core Equity Fund			Ivy Cundill Global Value Fund			Ivy Dividend Opportunities Fund			Ivy European Opportunities Fund			Ivy Global Bond Fund
INVESTMENT INCOME
Dividends from unaffiliated       securities	$	11		$	3,019		$	1,098		$	5,225		$	2,788		$	3,566		$	24
Foreign dividend withholding       tax		––			––			(1	)		(665	)		(2	)		(486	)		––
Interest and amortization from       unaffiliated securities		4,616			44			22			9			12			5			4,018
Foreign interest withholding tax		––			––			––			––			––			––			(11	)
Total Investment Income		4,627			3,063			1,119			4,569			2,798			3,085			4,031
EXPENSES
Investment management fee		628			1,776			702			1,586			890			1,048			550
Distribution and service fees:
Class A		247			404			119			297			227			216			128
Class B		35			33			23			89			52			40			28
Class C		128			199			453			188			199			82			196
Class E		3			3			1			1			3			––	*		N/A
Class Y		8			9			7			20			18			3			19
Shareholder servicing:
Class A		223			463			159			560			273			492			116
Class B		18			14			15			56			26			33			6
Class C		24			43			149			61			44			37			28
Class E		7			10			5			3			13			––	*		N/A
Class I		1			140			3			5			5			25			11
Class Y		5			6			5			15			11			2			12
Registration fees		55			57			57			47			46			45			49
Custodian fees		15			11			6			36			7			35			12
Trustees and Chief Compliance       Officer fees		3			8			(1	)		––	*		4			1			3
Accounting services fee		48			78			41			51			48			47			35
Legal fees		1			2			1			2			1			1			1
Audit fees		18			11			15			23			14			23			33
Other		17			58			22			40			29			34			14
Total Expenses		1,484			3,325			1,782			3,080			1,910			2,164			1,241
Less:
Expenses in excess of limit		(3	)		(8	)		(3	)		(29	)		(9	)		––			(216	)
Total Net Expenses		1,481			3,317			1,779			3,051			1,901			2,164			1,025
Net Investment                  Income (Loss)		3,146			(254	)		(660	)		1,518			897			921			3,006
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated            securities		5,761			(1,782	)		11,420			(1,562	)		1,526			901			1,099
Futures contracts		(188	)		––			––			––			––			668			––
Written options		––			(51	)		––			––			––			––			––
Forward foreign currency             contracts		––			––			––			5,832			––			4,396			216
Foreign currency exchange             transactions		––			––			––			193			––			(68	)		1
Net change in unrealized       appreciation (depreciation) on:
Investments in unaffiliated             securities		5,637			(17,688	)	(11,527		)		(6,851	)		(5,061	)	(1,881		)		1,470
Futures contracts		(18	)		––			––			––			––			––			––
Written options		––			421			––			––			––			––			––
Forward foreign currency             contracts		––			––			––			(7,664	)		––			(183	)		(300	)
Foreign currency             exchange transactions		––			––			1			(217	)		––			111			2
Net Realized and             Unrealized             Gain (Loss)		11,192			(19,100	)		(106	)		(10,269	)		(3,535	)		3,944			2,488
Net Increase                  (Decrease) in Net                   Assets Resulting                   from Operations	$	14,338		$	(19,354	)	$	(766	)	$	(8,751	)	$	(2,638	)	$	4,865		$	5,494

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF OPERATIONS

Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands)	Ivy High Income Fund			Ivy International Balanced Fund			Ivy International Core Equity Fund			Ivy International Growth Fund			Ivy Large Cap Growth Fund			Ivy Limited- Term Bond Fund			Ivy Managed European/ Pacific Fund
INVESTMENT INCOME
Dividends from unaffiliated       securities	$	11		$	4,430		$	15,745		$	3,066		$	4,480		$	––		$	––
Foreign dividend withholding tax		––			(478	)		(1,781	)		(260	)		(14	)		––			––
Interest and amortization from       unaffiliated securities		61,968			2,216			39			8			21			17,076			––	*
Foreign interest withholding tax		––			(1	)		––			––			––			––			––
Total Investment Income		61,979			6,167			14,003			2,814			4,487			17,076			––	*
EXPENSES
Investment management fee		3,872			894			3,188			745			3,063			2,483			20
Distribution and service fees:
Class A		849			225			541			119			561			844			93
Class B		169			37			80			19			44			121			8
Class C		1,345			110			433			141			233			1,221			10
Class E		3			2			3			––	*		1			1			––	*
Class R		N/A			N/A			N/A			N/A			35			N/A			N/A
Class Y		125			7			102			3			134			83			1
Shareholder servicing:
Class A		677			328			640			171			572			506			44
Class B		42			22			33			11			25			26			2
Class C		184			32			95			69			53			142			2
Class E		9			7			11			––	*		4			1			––	*
Class I		167			30			104			19			193			39			––	*
Class R		N/A			N/A			N/A			N/A			14			N/A			N/A
Class Y		83			4			67			3			83			53			––	*
Registration fees		90			47			79			45			71			107			45
Custodian fees		28			50			103			109			16			19			2
Trustees and Chief Compliance       Officer fees		21			3			11			(1	)		12			17			1
Accounting services fee		134			48			97			36			114			128			13
Legal fees		6			1			3			1			4			5			––	*
Audit fees		28			25			22			21			16			17			10
Other		154			26			71			––	*		88			70			11
Total Expenses		7,986			1,898			5,683			1,511			5,336			5,883			262
Less:
Expenses in excess of limit		(4	)		(5	)		(8	)		(1	)		(358	)		(2	)		––
Total Net Expenses		7,982			1,893			5,675			1,510			4,978			5,881			262
Net Investment                  Income (Loss)		53,997			4,274			8,328			1,304			(491	)		11,195			(262	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated             securities		34,487			13,266			27,274			9,721			(8,484	)		2,390			––
Investments in affiliated             securities		––			––			––			––			––			––		(1,900		)
Swap agreements		––			––			––			149			––			––			––
Forward foreign currency             contracts		16			1,721			––			1,823			––			––			––
Foreign currency exchange             transactions		12			(100	)		(110	)		(76	)		––			––			––
Net change in unrealized       appreciation (depreciation) on:
Investments in unaffiliated       securities		(5,960	)		(4,520	)		(2,771	)	(8,282		)(1)		(7,754	)		21,910			––
Investments in affiliated            securities		––			––			––			––			––			––			6,734
Swap agreements		––			––			––			1,161			––			––			––
Forward foreign currency             contracts		(163	)		(538	)		––		(1,554		)		––			––			––
Foreign currency exchange             transactions		(147	)		134			61			43			––			––			––
Net Realized and             Unrealized Gain (Loss)		28,245			9,963			24,454			2,985			(16,238	)		24,300			4,834
Net Increase (Decrease)                   in Net Assets                   Resulting from                   Operations	$	82,242		$	14,237		$	32,782		$	4,289		$	(16,729	)	$	35,495		$	4,572

*Not shown due to rounding.

(1)Net of India deferred taxes of $24.

See Accompanying Notes to Financial Statements.

STATEMENT OF OPERATIONS

Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands)	Ivy Managed International Opportunities Fund				Ivy Micro Cap Growth Fund			Ivy Mid Cap Growth Fund			Ivy Money Market Fund			Ivy Mortgage Securities Fund			Iv Municipal Bond Fund			Ivy Municipal High Income Fund
INVESTMENT INCOME
Dividends from unaffiliated securities		$	––		$	16		$	1,557		$	––		$	––		$	––		$	––
Foreign dividend withholding tax			––			(1	)		––			––			––			––			––
Interest and amortization from       unaffiliated securities			––	*		2			11			588			1,163			2,017			3,201
Total Investment Income			––	*		17			1,568			588			1,163			2,017			3,201
EXPENSES
Investment management fee			39			185			1,213			466			348			219			319
Distribution and service fees:
Class A			186			45			221			––			158			69			71
Class B			16			3			35			45			17			9			13
Class C			23			9			113			213			34			128			130
Class E			––	*		N/A			2			––			––	*		N/A			N/A
Class R			N/A			N/A			15			N/A			N/A			N/A			N/A
Class Y			––	*		––	*		81			N/A			2			1			2
Shareholder servicing:
Class A			67			73			317			131			270			32			23
Class B			3			3			20			10			13			1			1
Class C			2			4			29			32			12			14			7
Class E			––	*		N/A			7			5			2			N/A			N/A
Class I			––	*		––	*		7			N/A			––	*		––	*		29
Class R			N/A			N/A			6			N/A			N/A			N/A			N/A
Class Y			––	*		––	*		51			N/A			1			––	*		1
Registration fees			48			38			60			57			46			49			67
Custodian fees			2			15			9			8			14			4			4
Trustees and Chief Compliance Officer       fees			3			1			3			3			––	*		1			2
Accounting services fee			21			16			51			46			34			24			28
Legal fees			1			––	*		1			8			––	*		––	*		––	*
Audit fees			10			12			14			9			30			16			16
Other			15			9			30			16			11			4			4
Total Expenses			436			413			2,285			1,049			992			571			717
Less:
Expenses in excess of limit			––	*		(21	)		(43	)		(485	)		(1	)		––	*		(64	)
Total Net Expenses			436			392			2,242			564			991			571			653
Net Investment Income (Loss)			(436	)		(375	)		(674	)		24			172			1,446			2,548
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities			––			2,036			932			(46	)	(2,080		)		(126	)		7
Investments in affiliated securities		(12,499		)		––			––			––			––			––			––
Futures contracts			––			––			––			––			(492	)		––			––
Written options			––			––			(371	)		––			––			––			––
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities			––			(333	)		21,893			––			8,041			3,622			6,055
Investments in affiliated securities			19,513			––			––			––			––			––			––
Futures contracts			––			––			––			––			(68	)		––			––
Written options			––			––			188			––			––			––			––
Net Realized and Unrealized             Gain (Loss)			7,014			1,703			22,642			(46	)		5,401			3,496			6,062
Net Increase (Decrease) in                  Net Assets Resulting                  from Operations		$	6,578		$	1,328		$	21,968		$	(22	)	$	5,573		$	4,942		$	8,610

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF OPERATIONS

Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2010 (UNAUDITED)

(In thousands)	Ivy Pacific Opportunities Fund				Ivy Small Cap Growth Fund			Ivy Small Cap Value Fund			Ivy Tax- Managed Equity Fund			Ivy Value Fund
INVESTMENT INCOME
Dividends from unaffiliated securities		$	12,276		$	926		$	1,674		$	30		$	486
Foreign dividend withholding tax			(1,263	)		(16	)		(5	)		––	*		––
Interest and amortization from unaffiliated securities			29			28			10			1			2
Total Investment Income			11,042			938			1,679			31			488
EXPENSES
Investment management fee			3,286			1,954			1,028			19			229
Distribution and service fees:
Class A			636			180			251			5			70
Class B			78			39			32			2			12
Class C			162			763			71			2			27
Class E			––	*		2			––	*		N/A			––	*
Class R			N/A			14			N/A			N/A			N/A
Class Y			11			159			24			1			1
Shareholder servicing:
Class A			978			255			473			5			137
Class B			56			24			31			––	*		15
Class C			59			207			35			––	*		13
Class E			––	*		8			––	*		N/A			––	*
Class I			90			17			1			––	*		––	*
Class R			N/A			6			N/A			N/A			N/A
Class Y			7			98			17			––	*		1
Registration fees			65			63			54			56			49
Custodian fees			262			12			8			2			4
Trustees and Chief Compliance Officer fees			9			––	*		3			––	*		––	*
Accounting services fee			88			70			48			––			23
Legal fees			2			2			1			––	*		––	*
Audit fees			24			20			19			8			13
Other			72			38			34			2			13
Total Expenses			5,885			3,931			2,130			102			607
Less:
Expenses in excess of limit			––			(6	)		––			(25	)		(25	)
Total Net Expenses			5,885			3,925			2,130			77			582
Net Investment Income (Loss)			5,157			(2,987	)		(451	)		(46	)		(94	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities			34,960			2,318			8,494			(128	)		2,698
Futures contracts			––			(162	)		(2,351	)		––			(352	)
Written options			––			––			(640	)		––			156
Forward foreign currency contracts			(902	)		––			––			––			––
Foreign currency exchange transactions			(954	)		––			4			––			––
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities			12,525	(1)		37,105			(9,791	)		72			(4,316	)
Investments in affiliated securities			(185	)		––			––			––			––
Written options			––			––			(53	)		––			(78	)
Forward foreign currency contracts			(3,219	)		––			––			––			––
Foreign currency exchange transactions			459			(1	)		––			––			––
Net Realized and Unrealized Gain (Loss)			42,684			39,260			(4,337	)		(56	)		(1,892	)
Net Increase (Decrease) in Net Assets                   Resulting from Operations		$	47,841		$	36,273		$	(4,788	)	$	(102	)	$	(1,986	)

*Not shown due to rounding.

(1)Net of India deferred taxes of $822.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Bond Fund							Ivy Capital Appreciation Fund						Ivy Core Equity Fund
(In thousands)	Six months ended 9-30-10 (Unaudited)				Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	3,146		$	5,201		$	(254	)	$	820		$	(660	)	$	(365	)
Net realized gain (loss) on investments			5,573			1,889			(1,833	)		(47,311	)		11,420			23,007
Net change in unrealized       appreciation (depreciation)			5,619			13,798			(17,267	)		223,605			(11,526	)		45,926
Net Increase (Decrease) in             Net Assets Resulting             from Operations			14,338			20,888			(19,354	)		177,114			(766	)		68,568
Distributions to Shareholders From:
Net investment income:
Class A			(2,961	)		(4,510	)		––			(102	)		––			––
Class B			(67	)		(102	)		––			––			––			––
Class C			(289	)		(437	)		––			––			––			––
Class E			(38	)		(61	)		––			(3	)		––			––
Class I			(13	)		(23	)		––			(433	)		––			––
Class Y			(97	)		(151	)		––			(2	)		––			––
Net realized gains:
Class A			––			––			––			––			––			––
Class B			––			––			––			––			––			––
Class C			––			––			––			––			––			––
Class E			––			––			––			––			––			––
Class I			––			––			––			––			––			––
Class Y			––			––			––			––			––			––
Tax return of capital:
Class A			––			––			––			––			––			(186	)
Class B			––			––			––			––			––			––
Class C			––			––			––			––			––			––
Class E			––			––			––			––			––			(2	)
Class I			––			––			––			––			––			(12	)
Class Y			––			––			––			––			––			(19	)
Total Distributions to             Shareholders			(3,465	)		(5,284	)		––			(540	)		––			(219	)
Capital Share Transactions			64,903			69,906			(27,832	)		35,526			370			(9,772	)
Net Increase (Decrease) in             Net Assets			75,776			85,510			(47,186	)		212,100			(396	)		58,577
Net Assets, Beginning of                   Period			202,390			116,880			582,542			370,442			207,609			149,032
Net Assets, End of Period		$	278,166		$	202,390		$	535,356		$	582,542		$	207,213		$	207,609
Undistributed (distributions in       excess of) net investment       income		$(318		)	$ ––			$15			$269			$(738		)	$(78		)

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Cundill Global Value Fund							Ivy Dividend Opportunities Fund						Ivy European Opportunities Fund
(In thousands)	Six months ended 9-30-10 (Unaudited)				Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	1,518		$	1,568		$	897		$	2,118		$	921		$	3,321
Net realized gain (loss) on       investments			4,463			(18,208	)		1,526			(11,910	)		5,897			(20,150	)
Net change in unrealized       appreciation (depreciation)			(14,732	)		142,172			(5,061	)		85,623			(1,953	)		96,981
Net Increase (Decrease) in             Net Assets Resulting from             Operations			(8,751	)		125,532			(2,638	)		75,831			4,865			80,152
Distributions to Shareholders From:
Net investment income:
Class A			––			(1,702	)		(811	)		(1,538	)		––			(3,004	)
Class B			––			(48	)		(3	)		(7	)		––			(101	)
Class C			––			(172	)		(64	)		(113	)		––			(267	)
Class E			––			(4	)		(11	)		(20	)		––			(1	)
Class I			––			(60	)		(37	)		(73	)		––			(672	)
Class Y			––			(135	)		(75	)		(174	)		––			(55	)
Advisor Class			N/A			(24	)		N/A			N/A			N/A			(16	)
Net realized gains:
Class A			––			––			––			––			––			––
Class B			––			––			––			––			––			––
Class C			––			––			––			––			––			––
Class E			––			––			––			––			––			––
Class I			––			––			––			––			––			––
Class Y			––			––			––			––			––			––
Advisor Class			N/A			––			N/A			N/A			N/A			––
Tax return of capital:
Class A			––			(530	)		––			––			––			––
Class B			––			(14	)		––			––			––			––
Class C			––			(54	)		––			––			––			––
Class E			––			(1	)		––			––			––			––
Class I			––			(18	)		––			––			––			––
Class Y			––			(42	)		––			––			––			––
Advisor Class			N/A			(7	)		N/A			N/A			N/A			––
Total Distributions to             Shareholders			––			(2,811	)		(1,001	)		(1,925	)		––			(4,116	)
Capital Share Transactions			(20,955	)		(59,890	)		15,037			(12,116	)		(13,386	)		(7,534	)
Net Increase (Decrease) in             Net Assets			(29,706	)		62,831			11,398			61,790			(8,521	)		68,502
Net Assets, Beginning of Period			340,753			277,922			259,400			197,610			254,909			186,407
Net Assets, End of Period		$	311,047		$	340,753		$	270,798		$	259,400		$	246,388		$	254,909
Undistributed (distributions in       excess of) net investment       income		$936			$(775		)	$388			$492			$1,419			$566

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Global Bond Fund							Ivy High Income Fund						Ivy International Balanced Fund
(In thousands)	Six months ended 9-30-10 (Unaudited)				Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	3,006		$	4,099		$	53,997		$	72,621		$	4,274		$	4,980
Net realized gain (loss) on       investments			1,316			(265	)		34,515			61,475			14,887			(48,925	)
Net change in unrealized       appreciation (depreciation)			1,172			8,019			(6,270	)		121,009			(4,924	)		122,706
Net Increase in Net Assets            Resulting from             Operations			5,494			11,853			82,242			255,105			14,237			78,761
Distributions to Shareholders From:
Net investment income:
Class A			(1,653	)		(1,829	)		(28,614	)		(42,361	)		––			(264	)
Class B			(71	)		(134	)		(1,289	)		(1,660	)		––			(2	)
Class C			(488	)		(529	)		(10,408	)		(12,912	)		––			(29	)
Class E			N/A			N/A			(103	)		(140	)		––			(2	)
Class I			(248	)		(309	)		(9,439	)		(10,612	)		––			(92	)
Class Y			(242	)		(332	)		(4,225	)		(6,568	)		––			(3	)
Net realized gains:
Class A			––			––			––			(12,080	)		––			––
Class B			––			––			––			(538	)		––			––
Class C			––			––			––			(4,406	)		––			––
Class E			N/A			N/A			––			(40	)		––			––
Class I			––			––			––			(3,230	)		––			––
Class Y			––			––			––			(1,898	)		––			––
Total Distributions to            Shareholders			(2,702	)		(3,133	)		(54,078	)		(96,445	)		––			(392	)
Capital Share Transactions			43,666			82,317			246,469			731,206			(12,529	)		(2,561	)
Net Increase in Net Assets			46,458			91,037			274,633			889,866			1,708			75,808
Net Assets, Beginning of             Period			155,440			64,403			1,232,528			342,662			266,155			190,347
Net Assets, End of Period		$	201,898		$	155,440		$	1,507,161		$	1,232,528		$	267,863		$	266,155
Undistributed (distributions in       excess of) net investment       income		$378			$171			$ ––			$69			$4,150			$(23		)

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy International Core Equity Fund							Ivy International Growth Fund						Ivy Large Cap Growth Fund
(In thousands)	Six months ended 9-30-10 (Unaudited)				Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	8,328		$	5,016		$	1,304		$	1,514		$	(491	)	$	2,719
Net realized gain (loss) on       investments			27,164			37,944			11,617			4,169			(8,484	)		24,816
Net change in unrealized appreciation (depreciation)			(2,710	)		114,761			(8,632	)		55,651			(7,754	)		209,474
Net Increase (Decrease)             in Net Assets Resulting             from Operations			32,782			157,721			4,289			61,334			(16,729	)		237,009
Distributions to Shareholders From:
Net investment income:
Class A			––			(2,498	)		––			(980	)		––			(1,881	)
Class B			––			(23	)		––			(9	)		––			––
Class C			––			(255	)		––			(78	)		––			––
Class E			––			(14	)		––			(1	)		––			(4	)
Class I			––			(918	)		––			(407	)		––			(1,487	)
Class R			N/A			N/A			N/A			N/A			––			(10	)
Class Y			––			(987	)		––			(33	)		––			(506	)
Net realized gains:
Class A			––			––			––			––			––			––
Class B			––			––			––			––			––			––
Class C			––			––			––			––			––			––
Class E			––			––			––			––			––			––
Class I			––			––			––			––			––			––
Class R			N/A			N/A			N/A			N/A			––			––
Class Y			––			––			––			––			––			––
Total Distributions to             Shareholders			––			(4,695	)		––			(1,508	)		––			(3,888	)
Capital Share Transactions			126,268			327,499			(20,111	)		7,007			(90,622	)		126,008
Net Increase (Decrease)             in Net Assets			159,050			480,525			(15,822	)		66,833			(107,351	)		359,129
Net Assets, Beginning                   of Period			715,249			234,724			194,721			127,888			919,563			560,434
Net Assets, End of Period		$	874,299		$	715,249		$	178,899		$	194,721		$	812,212		$	919,563
Undistributed (distributions in       excess of) net investment       income		$8,643			$425			$1,354			$127			$(535		)	$(44		)

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Limited-Term Bond Fund							Ivy Managed European/Pacific Fund						Ivy Managed International Opportunities Fund
(In thousands)	Six months ended 9-30-10 (Unaudited)				Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	11,195		$	18,189		$	(262	)	$	(165	)	$	(436	)	$	339
Net realized gain (loss) on       investments			2,390			4,038			(1,900	)		(7,519	)		(12,499	)		(5,722	)
Net change in unrealized       appreciation			21,910			13,823			6,734			33,262			19,513			52,912
Net Increase in Net Assets            Resulting from Operations			35,495			36,050			4,572			25,578			6,578			47,529
Distributions to Shareholders From:
Net investment income:
Class A			(8,306	)		(12,151	)		––			(20	)		––			(338	)
Class B			(198	)		(434	)		––			––			––			––
Class C			(2,136	)		(4,066	)		––			––	*		––			––
Class E			(7	)		(4	)		––			––	*		––			(1	)
Class I			(685	)		(843	)		––			––	*		––			(1	)
Class Y			(815	)		(1,414	)		––			––	*		––			(1	)
Net realized gains:
Class A			––			(1,112	)		––			––			––			––
Class B			––			(48	)		––			––			––			––
Class C			––			(465	)		––			––			––			––
Class E			––			(1	)		––			––			––			––
Class I			––			(77	)		––			––			––			––
Class Y			––			(128	)		––			––			––			––
Tax return of capital:
Class A			––			––			––			(90	)		––			(271	)
Class B			––			––			––			––			––			––
Class C			––			––			––			––	*		––			––
Class E			––			––			––			––	*		––			––	*
Class I			––			––			––			––	*		––			––	*
Class Y			––			––			––			(2	)		––			(1	)
Total Distributions to             Shareholders			(12,147	)		(20,743	)		––			(112	)		––			(613	)
Capital Share Transactions			289,419			372,930			302			12,723			2,546			24,330
Net Increase in Net Assets			312,767			388,237			4,874			38,189			9,124			71,246
Net Assets, Beginning                   of Period			898,720			510,483			79,667			41,478			160,821			89,575
Net Assets, End of Period		$	1,211,487		$	898,720		$	84,541		$	79,667		$	169,945		$	160,821
Distributions in excess of net       investment income		$(952		)	$ ––			$(263		)	$(1		)	$(439		)	$(3		)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Micro Cap Growth Fund							Ivy Mid Cap Growth Fund						Ivy Money Market Fund
(In thousands)	Six months ended 9-30-10 (Unaudited)				Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	(375	)	$	(356	)	$	(674	)	$	(869	)	$	24		$	1,211
Net realized gain (loss) on       investments			2,036			1,380			561			6,075			(46	)		65
Net change in unrealized       appreciation (depreciation)			(333	)		5,434			22,081			65,750			––			––
Net Increase (Decrease) in             Net Assets Resulting             from Operations			1,328			6,458			21,968			70,956			(22	)		1,276
Distributions to Shareholders From:
Net investment income:
Class A			––			––			––			––			(18	)		(1,081	)
Class B			––			––			––			––			(1	)		(20	)
Class C			––			––			––			––			(4	)		(89	)
Class E			N/A			N/A			––			––			(1	)		(21	)
Class I			––			––			––			––			N/A			N/A
Class R			N/A			N/A			––			––			N/A			N/A
Class Y			––			––			––			––			N/A			N/A
Net realized gains:
Class A			––			(525	)		––			––			––			(26	)
Class B			––			(10	)		––			––			––			(2	)
Class C			––			(22	)		––			––			––			(10	)
Class E			N/A			N/A			––			––			––			(1	)
Class I			––			(11	)		––			––			N/A			N/A
Class R			N/A			N/A			––			––			N/A			N/A
Class Y			––			(4	)		––			––			N/A			N/A
Total Distributions to             Shareholders			––			(572	)		––			––			(24	)		(1,250	)
Capital Share Transactions			18,248			20,151			90,683			85,365			(6,445	)		(86,579	)
Net Increase (Decrease) in             Net Assets			19,576			26,037			112,651			156,321			(6,491	)		(86,553	)
Net Assets, Beginning of                   Period			29,761			3,724			251,359			95,038			247,428			333,981
Net Assets, End of Period		$	49,337		$	29,761		$	364,010		$	251,359		$	240,937		$	247,428
Distributions in excess of net       investment income		$(589		)	$(213		)	$(704		)	$(30		)	$ ––			$ ––

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

		Ivy Mortgage Securities Fund						Ivy Municipal Bond Fund						Ivy Municipal High Income Fund
(In thousands)	Six months ended 9-30-10 (Unaudited)				Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10			Six months ended 9-30-10 (Unaudited)			Fiscal year ended 3-31-10(1)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	172		$	5,201		$	1,446		$	2,460		$	2,548		$	731
Net realized gain (loss) on       investments			(2,572	)		(20,061	)		(126	)		(82	)		7			123
Net change in unrealized       appreciation			7,973			31,110			3,622			4,332			6,055			1,516
Net Increase in Net Assets             Resulting from Operations			5,573			16,250			4,942			6,710			8,610			2,370
Distributions to Shareholders From:
Net investment income:
Class A			(2,330	)		(6,120	)		(1,024	)		(1,638	)		(1,178	)		(361	)
Class B			(46	)		(147	)		(25	)		(54	)		(46	)		(54	)
Class C			(102	)		(286	)		(376	)		(754	)		(433	)		(135	)
Class E			(6	)		(15	)		N/A			N/A			N/A			N/A
Class I			(11	)		(25	)		(8	)		(7	)		(801	)		(113	)
Class Y			(27	)		(125	)		(8	)		(8	)		(31	)		(36	)
Net realized gains:
Class A			––			––			––			––			––			(14	)
Class B			––			––			––			––			––			(2	)
Class C			––			––			––			––			––			(6	)
Class E			––			––			N/A			N/A			N/A			N/A
Class I			––			––			––			––			––			(3	)
Class Y			––			––			––			––			––			(1	)
Total Distributions to            Shareholders			(2,522	)		(6,718	)		(1,441	)		(2,461	)		(2,489	)		(725	)
Capital Share Transactions			(31,817	)		(17,210	)		20,313			10,642			208,052			37,570
Net Increase (Decrease) in            Net Assets			(28,766	)		(7,678	)		23,814			14,891			214,173			39,215
Net Assets, Beginning of                   Period			141,772			149,450			71,459			56,568			43,879			4,664
Net Assets, End of Period		$	113,006		$	141,772		$	95,273		$	71,459		$	258,052		$	43,879
Undistributed (distributions in       excess of) net investment       income		$(2,350		)	$ ––			$12			$7			$92			$32

(1)For the period from May 18, 2009 (commencement of operations) through September 30, 2010.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

Ivy Pacific Opportunities Fund

Ivy Small Cap Growth Fund

Ivy Small Cap Value Fund

(In thousands)

Six months ended 9-30-10 (Unaudited)

Fiscal year ended 3-31-10

Six months ended 9-30-10 (Unaudited)

Fiscal year ended 3-31-10

Six months ended 9-30-10 (Unaudited)

Fiscal year ended 3-31-10

INCREASE (DECREASE) IN NET ASSETS

Operations:

Net investment income (loss)

$

5,157

$

(3,491

)

$

(2,987

)

$

(4,832

)

$

(451

)

$

(1,072

)

Net realized gain on investments

33,104

10,155

2,156

34,465

5,507

17,283

Net change in unrealized       appreciation (depreciation)

9,580

224,499

37,104

126,279

(9,844

)

57,014

Net Increase (Decrease) in             Net Assets Resulting             from Operations

47,841

231,163

36,273

155,912

(4,788

)

73,225

Distributions to Shareholders From:

Net investment income:

Class A

––

––

––

––

––

––

Class B

––

––

––

––

––

––

Class C

––

––

––

––

––

––

Class E

––

––

––

––

––

––

Class I

––

––

––

––

––

––

Class R

N/A

N/A

––

––

N/A

N/A

Class Y

––

––

––

––

––

––

Advisor Class

N/A

––

N/A

N/A

N/A

N/A

Net realized gains:

Class A

––

––

––

––

––

––

Class B

––

––

––

––

––

––

Class C

––

––

––

––

––

––

Class E

––

––

––

––

––

––

Class I

––

––

––

––

––

––

Class R

N/A

N/A

––

––

N/A

N/A

Class Y

––

––

––

––

––

––

Advisor Class

N/A

––

N/A

N/A

N/A

N/A

Total Distributions to             Shareholders

––

––

––

––

––

––

Capital Share Transactions

22,030

133,582

46,048

25,973

(2,567

)

46,226

Net Increase (Decrease) in            Net Assets

69,871

364,745

82,321

181,885

(7,355

)

119,451

Net Assets, Beginning                   of Period

678,391

313,646

431,435

249,550

244,536

125,085

Net Assets, End of Period

$

748,262

$

678,391

$

513,756

$

431,435

$

237,181

$

244,536

Undistributed (distributions in       excess of) net investment       income

$4,131

$(72

)

$(3,106

)

$(119

)

$(467

)

$(20

)

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

Ivy Tax-Managed Equity Fund

Ivy Value Fund

(In thousands)

Six months ended 9-30-10 (Unaudited)

Fiscal year ended 3-31-10(1)

Six months ended 9-30-10 (Unaudited)

Fiscal year ended 3-31-10

INCREASE (DECREASE) IN NET ASSETS

Operations:

Net investment income (loss)

$

(46

)

$

(36

)

$

(94

)

$

70

Net realized gain (loss) on investments

(128

)

(10

)

2,502

191

Net change in unrealized appreciation (depreciation)

72

669

(4,394

)

21,772

Net Increase (Decrease) in Net Assets             Resulting from Operations

(102

)

623

(1,986

)

22,033

Distributions to Shareholders From:

Net investment income:

Class A

––

––

––

(80

)

Class B

––

––

––

––

Class C

––

––

––

––

Class E

N/A

N/A

––

––

*

Class I

––

––

––

(1

)

Class Y

––

––

––

(2

)

Net realized gains:

Class A

––

––

––

––

Class B

––

––

––

––

Class C

––

––

––

––

Class E

N/A

N/A

––

––

Class I

––

––

––

––

Class Y

––

––

––

––

Tax return of capital:

Class A

––

––

––

(73

)

Class B

––

––

––

––

Class C

––

––

––

––

Class E

N/A

N/A

––

(1

)

Class I

––

––

––

––

*

Class Y

––

––

––

(1

)

Total Distributions to Shareholders

––

––

––

(158

)

Capital Share Transactions

2,123

4,038

7,591

4,894

Net Increase in Net Assets

2,021

4,661

5,605

26,769

Net Assets, Beginning of Period

4,859

198

65,463

38,694

Net Assets, End of Period

$

6,880

$

4,859

$

71,068

$

65,463

Undistributed (distributions in excess of)       net investment income

$(46

)

$ ––

*

$192

$286

*Not shown due to rounding.

(1)For the period from May 18, 2009 (commencement of operations) through September 30, 2010.

See Accompanying Notes to Financial Statements.

This page intentionally left blank.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY BOND FUND
	Net Asset Value, Beginning of Period			Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	9.82	$	0.14	(2)	$	0.47	(2)	$	0.61		$	(0.15	)	$	––	$	(0.15	)
Fiscal year ended 3-31-2010			8.76		0.33	(2)		1.07	(2)		1.40			(0.34	)		––		(0.34	)
Fiscal year ended 3-31-2009			9.84		0.36			(1.06	)		(0.70	)		(0.38	)		––		(0.38	)
Fiscal year ended 3-31-2008			10.46		0.47			(0.62	)		(0.15	)		(0.47	)		––		(0.47	)
Fiscal year ended 3-31-2007			10.28		0.46			0.18			0.64			(0.46	)		––		(0.46	)
Fiscal year ended 3-31-2006			10.52		0.42			(0.24	)		0.18			(0.42	)		––		(0.42	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			9.82		0.09	(2)		0.47	(2)		0.56			(0.10	)		––		(0.10	)
Fiscal year ended 3-31-2010			8.76		0.22	(2)		1.07	(2)		1.29			(0.23	)		––		(0.23	)
Fiscal year ended 3-31-2009			9.84		0.24			(1.06	)		(0.82	)		(0.26	)		––		(0.26	)
Fiscal year ended 3-31-2008			10.46		0.36			(0.62	)		(0.26	)		(0.36	)		––		(0.36	)
Fiscal year ended 3-31-2007			10.28		0.34			0.18			0.52			(0.34	)		––		(0.34	)
Fiscal year ended 3-31-2006			10.52		0.30			(0.24	)		0.06			(0.30	)		––		(0.30	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			9.82		0.11	(2)		0.47	(2)		0.58			(0.12	)		––		(0.12	)
Fiscal year ended 3-31-2010			8.76		0.28	(2)		1.06	(2)		1.34			(0.28	)		––		(0.28	)
Fiscal year ended 3-31-2009			9.84		0.27	(2)		(1.05	)(2)		(0.78	)		(0.30	)		––		(0.30	)
Fiscal year ended 3-31-2008			10.46		0.39			(0.62	)		(0.23	)		(0.39	)		––		(0.39	)
Fiscal year ended 3-31-2007			10.28		0.37			0.18			0.55			(0.37	)		––		(0.37	)
Fiscal year ended 3-31-2006			10.52		0.31			(0.24	)		0.07			(0.31	)		––		(0.31	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			9.82		0.14	(2)		0.47	(2)		0.61			(0.15	)		––		(0.15	)
Fiscal year ended 3-31-2010			8.76		0.34	(2)		1.07	(2)		1.41			(0.35	)		––		(0.35	)
Fiscal year ended 3-31-2009			9.84		0.34			(1.06	)		(0.72	)		(0.36	)		––		(0.36	)
Fiscal year ended 3-31-2008(5)			10.46		0.43	(2)		(0.62	)(2)		(0.19	)		(0.43	)		––		(0.43	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			9.82		0.16	(2)		0.47	(2)		0.63			(0.17	)		––		(0.17	)
Fiscal year ended 3-31-2010			8.76		0.38	(2)		1.06	(2)		1.44			(0.38	)		––		(0.38	)
Fiscal year ended 3-31-2009			9.84		0.39			(1.06	)		(0.67	)		(0.41	)		––		(0.41	)
Fiscal year ended 3-31-2008(5)			10.46		0.50	(2)		(0.62	)(2)		(0.12	)		(0.50	)		––		(0.50	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			9.82		0.15	(2)		0.47	(2)		0.62			(0.16	)		––		(0.16	)
Fiscal year ended 3-31-2010			8.76		0.35	(2)		1.07	(2)		1.42			(0.36	)		––		(0.36	)
Fiscal year ended 3-31-2009			9.84		0.33	(2)		(1.03	)(2)		(0.70	)		(0.38	)		––		(0.38	)
Fiscal year ended 3-31-2008			10.46		0.46	(2)		(0.62	)(2)		(0.16	)		(0.46	)		––		(0.46	)
Fiscal year ended 3-31-2007			10.28		0.46			0.18			0.64			(0.46	)		––		(0.46	)
Fiscal year ended 3-31-2006			10.52		0.41			(0.24	)		0.17			(0.41	)		––		(0.41	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)	$	10.28		6.28	%(3)	$	229			1.13	%(4)		2.73	%(4)		––	%		––	%		229	%
Fiscal year ended 3-31-2010		9.82		16.27	(3)		168			1.21			3.58			––			––			410
Fiscal year ended 3-31-2009		8.76		- -7.22	(3)		98			1.25			3.89			––			––			441
Fiscal year ended 3-31-2008		9.84		- -1.51	(3)		95			1.21			4.57			––			––			75
Fiscal year ended 3-31-2007		10.46		6.40	(3)		64			1.20			4.48			––			––			91
Fiscal year ended 3-31-2006		10.28		1.74	(3)		56			1.23			4.03			––			––			126
Class B Shares
Six-month period ended       9-30-2010 (unaudited)		10.28		5.72			8			2.19	(4)		1.70	(4)		––			––			229
Fiscal year ended 3-31-2010		9.82		14.84			6			2.41			2.36			––			––			410
Fiscal year ended 3-31-2009		8.76		- -8.45			3			2.60			2.51			––			––			441
Fiscal year ended 3-31-2008		9.84		- -2.59			2			2.31			3.46			––			––			75
Fiscal year ended 3-31-2007		10.46		5.22			2			2.32			3.37			––			––			91
Fiscal year ended 3-31-2006		10.28		0.57			1			2.38			2.90			––			––			126
Class C Shares
Six-month period ended       9-30-2010 (unaudited)		10.28		5.90			31			1.84	(4)		1.98	(4)		––			––			229
Fiscal year ended 3-31-2010		9.82		15.44			19			1.95			2.87			––			––			410
Fiscal year ended 3-31-2009		8.76		- -7.99			13			2.06			2.92			––			––			441
Fiscal year ended 3-31-2008		9.84		- -2.31			5			2.02			3.76			––			––			75
Fiscal year ended 3-31-2007		10.46		5.48			4			2.06			3.62			––			––			91
Fiscal year ended 3-31-2006		10.28		0.66			2			2.28			3.01			––			––			126
Class E Shares
Six-month period ended       9-30-2010 (unaudited)		10.28		6.24	(3)		3			1.21	(4)		2.67	(4)		1.49	(4)		2.39	(4)		229
Fiscal year ended 3-31-2010		9.82		16.30	(3)		2			1.21			3.56			1.68			3.09			410
Fiscal year ended 3-31-2009		8.76		- -7.37	(3)		1			1.37			3.73			1.77			3.33			441
Fiscal year ended 3-31-2008(5)		9.84		- -1.85	(3)		1			1.59	(4)		4.14	(4)		––			––			75	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)		10.28		6.45			1			0.82	(4)		3.05	(4)		––			––			229
Fiscal year ended 3-31-2010		9.82		16.73			1			0.84			3.84			––			––			410
Fiscal year ended 3-31-2009		8.76		- -6.88			––	*		0.88			4.26			––			––			441
Fiscal year ended 3-31-2008(5)		9.84		- -1.17			––	*		0.91	(4)		4.87	(4)		––			––			75	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)		10.28		6.33			7			1.05	(4)		2.85	(4)		––			––			229
Fiscal year ended 3-31-2010		9.82		16.41			6			1.09			3.58			––			––			410
Fiscal year ended 3-31-2009		8.76		- -7.23			1			1.19			3.61			1.21			3.59			441
Fiscal year ended 3-31-2008		9.84		- -1.60			––	*		1.34			4.42			––			––			75
Fiscal year ended 3-31-2007		10.46		6.43			––	*		1.09			4.60			––			––			91
Fiscal year ended 3-31-2006		10.28		1.62			––	*		1.34			3.91			––			––			126

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY CAPITAL APPRECIATION FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	8.63	$	(0.01	)(2)	$	(0.26	)(2)	$	(0.27	)	$	––		$	––		$	––
Fiscal year ended 3-31-2010			5.87		0.01	(2)		2.75	(2)		2.76			––	*		––			––
Fiscal year ended 3-31-2009			9.71		(0.01	)(2)		(3.83	)(2)		(3.84	)		––			––			––	*
Fiscal year ended 3-31-2008			10.09		0.00	(2)		(0.27	)(2)		(0.27	)		––			(0.11	)		––
Fiscal year ended 3-31-2007			9.16		0.00	(2)		0.93	(2)		0.93			––			––			––
Fiscal year ended 3-31-2006			7.99		(0.03	)(2)		1.20	(2)		1.17			––			––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			7.89		(0.04	)(2)		(0.25	)(2)		(0.29	)		––			––			––
Fiscal year ended 3-31-2010			5.42		(0.06	)(2)		2.53	(2)		2.47			––			––			––
Fiscal year ended 3-31-2009			9.05		(0.14	)		(3.49	)		(3.63	)		––			––			––
Fiscal year ended 3-31-2008			9.43		(0.10	)(2)		(0.25	)(2)		(0.35	)		––			(0.03	)		––
Fiscal year ended 3-31-2007			8.65		(0.09	)(2)		0.87	(2)		0.78			––			––			––
Fiscal year ended 3-31-2006			7.62		(0.11	)(2)		1.14	(2)		1.03			––			––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			7.94		(0.03	)(2)		(0.25	)(2)		(0.28	)		––			––			––
Fiscal year ended 3-31-2010			5.44		(0.04	)(2)		2.54	(2)		2.50			––			––			––
Fiscal year ended 3-31-2009			9.06		(0.09	)		(3.53	)		(3.62	)		––			––			––	*
Fiscal year ended 3-31-2008			9.45		(0.08	)(2)		(0.28	)(2)		(0.36	)		––			(0.03	)		––
Fiscal year ended 3-31-2007			8.64		(0.07	)(2)		0.88	(2)		0.81			––			––			––
Fiscal year ended 3-31-2006			7.60		(0.09	)(2)		1.13	(2)		1.04			––			––			––
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			8.66		0.00	(2)		(0.27	)(2)		(0.27	)		––			––			––
Fiscal year ended 3-31-2010			5.88		0.02	(2)		2.77	(2)		2.79			(0.01	)		––			––
Fiscal year ended 3-31-2009			9.70		(0.01	)		(3.81	)		(3.82	)		––			––			––	*
Fiscal year ended 3-31-2008(5)			10.12		(0.03	)(2)		(0.30	)(2)		(0.33	)		––			(0.09	)		––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			8.71		0.01	(2)		(0.27	)(2)		(0.26	)		––			––			––
Fiscal year ended 3-31-2010			5.92		0.04	(2)		2.77	(2)		2.81			(0.02	)		––			––
Fiscal year ended 3-31-2009			9.74		0.02	(2)		(3.84	)(2)		(3.82	)		––			––			––	*
Fiscal year ended 3-31-2008(5)			10.14		0.02	(2)		(0.29	)(2)		(0.27	)		––			(0.13	)		––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			8.67		0.00	(2)		(0.27	)(2)		(0.27	)		––			––			––
Fiscal year ended 3-31-2010			5.90		0.01	(2)		2.76	(2)		2.77			––	*		––			––
Fiscal year ended 3-31-2009			9.73		0.00			(3.83	)		(3.83	)		––			––			––	*
Fiscal year ended 3-31-2008			10.10		0.00	(2)		(0.26	)(2)		(0.26	)		––			(0.11	)		––
Fiscal year ended 3-31-2007			9.16		0.01	(2)		0.93	(2)		0.94			––			––			––
Fiscal year ended 3-31-2006			7.99		(0.02	)(2)		1.19	(2)		1.17			––			––			––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	––		$	8.36		- -3.13	%(3)	$	315		1.27	%(4)		- -0.15	%(4)		––	%		––	%		18	%
Fiscal year ended 3-31-2010			––	*		8.63		47.07	(3)		337		1.28			0.12			––			––			42
Fiscal year ended 3-31-2009			––	*		5.87		- -39.54	(3)		196		1.31			- -0.18			––			––			77
Fiscal year ended 3-31-2008			(0.11	)		9.71		- -2.83	(3)		393		1.15			- -0.01			––			––			81
Fiscal year ended 3-31-2007			––			10.09		10.15	(3)		58		1.35			0.05			1.40			0.00			95
Fiscal year ended 3-31-2006			––			9.16		14.64	(3)		36		1.30			- -0.29			1.55			- -0.54			60
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			––			7.60		- -3.68			6		2.17	(4)		- -1.04	(4)		––			––			18
Fiscal year ended 3-31-2010			––			7.89		45.57			7		2.23			- -0.81			––			––			42
Fiscal year ended 3-31-2009			––			5.42	-40.11				5		2.29			- -1.17			––			––			77
Fiscal year ended 3-31-2008			(0.03	)		9.05		- -3.76			12		2.13			- -0.99			––			––			81
Fiscal year ended 3-31-2007			––			9.43		9.02			4		2.47			- -1.07			2.51			- -1.11			95
Fiscal year ended 3-31-2006			––			8.65		13.52			2		2.31			- -1.30			2.56			- -1.55			60
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			––			7.66		- -3.53			35		1.95	(4)		- -0.83	(4)		––			––			18
Fiscal year ended 3-31-2010			––			7.94		45.96			46		2.02			- -0.60			––			––			42
Fiscal year ended 3-31-2009			––	*		5.44		- -39.95			40		2.03			- -0.91			––			––			77
Fiscal year ended 3-31-2008			(0.03	)		9.06		- -3.82			80		1.89			- -0.77			––			––			81
Fiscal year ended 3-31-2007			––			9.45		9.38			11		2.14			- -0.75			2.18			- -0.79			95
Fiscal year ended 3-31-2006			––			8.64		13.68			7		2.07			- -1.05			2.32			- -1.30			60
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.39		- -3.12	(3)		2		1.15	(4)		- -0.03	(4)		1.82	(4)		- -0.70	(4)		18
Fiscal year ended 3-31-2010			(0.01	)		8.66		47.45	(3)		2		1.15			0.26			1.92			- -0.51			42
Fiscal year ended 3-31-2009			––	*		5.88		- -39.37	(3)		2		1.23			- -0.10			1.85			- -0.72			77
Fiscal year ended 3-31-2008(5)			(0.09	)		9.70		- -3.40	(3)		2		1.35	(4)		- -0.28	(4)		1.73	(4)		- -0.66	(4)		81	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.45		- -2.99			170		0.89	(4)		0.23	(4)		––			––			18
Fiscal year ended 3-31-2010			(0.02	)		8.71		47.52			183		0.90			0.52			––			––			42
Fiscal year ended 3-31-2009			––	*		5.92		- -39.21			111		0.90			0.28			––			––			77
Fiscal year ended 3-31-2008(5)			(0.13	)		9.74		- -2.83			12		0.86	(4)		0.23	(4)		––			––			81	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.40		- -3.11			6		1.14	(4)		- -0.02	(4)		––			––			18
Fiscal year ended 3-31-2010			––	*		8.67		47.00			8		1.21			0.21			––			––			42
Fiscal year ended 3-31-2009			––	*		5.90		- -39.35			16		1.16			- -0.07			––			––			77
Fiscal year ended 3-31-2008			(0.11	)		9.73		- -2.83			58		1.14			0.00			––			––			81
Fiscal year ended 3-31-2007			––			10.10		10.37			10		1.27			0.16			1.31			0.12			95
Fiscal year ended 3-31-2006			––			9.16		14.64			1		1.20			- -0.23			1.45			- -0.48			60

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY CORE EQUITY FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Distributions From Return of Capital
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	8.91	$	(0.01	)(2)	$	0.01	(2)	$	0.00		$	––	$	––		$	––
Fiscal year ended 3-31-2010			6.04		0.00	(2)		2.89	(2)		2.89			––		––			(0.02	)
Fiscal year ended 3-31-2009			9.33		0.00			(3.27	)		(3.27	)		––		––			(0.02	)
Fiscal year ended 3-31-2008			10.03		0.01			0.25			0.26			––		(0.96	)		––
Fiscal year ended 3-31-2007			10.24		0.00			0.88			0.88			––		(1.09	)		––
Fiscal year ended 3-31-2006			9.03		0.00			1.21			1.21			––		––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			8.10		(0.05	)(2)		0.01	(2)		(0.04	)		––		––			––
Fiscal year ended 3-31-2010			5.54		(0.06	)(2)		2.62	(2)		2.56			––		––			––
Fiscal year ended 3-31-2009			8.64		(0.11	)		(2.98	)		(3.09	)		––		––			(0.01	)
Fiscal year ended 3-31-2008			9.34		(0.06	)		0.22			0.16			––		(0.86	)		––
Fiscal year ended 3-31-2007			9.70		(0.07	)		0.80			0.73			––		(1.09	)		––
Fiscal year ended 3-31-2006			8.63		(0.10	)		1.17			1.07			––		––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			8.23		(0.04	)(2)		0.01	(2)		(0.03	)		––		––			––
Fiscal year ended 3-31-2010			5.61		(0.04	)(2)		2.66	(2)		2.62			––		––			––
Fiscal year ended 3-31-2009			8.74		(0.06	)		(3.05	)		(3.11	)		––		––			(0.02	)
Fiscal year ended 3-31-2008			9.44		(0.05	)		0.22			0.17			––		(0.87	)		––
Fiscal year ended 3-31-2007			9.77		(0.06	)		0.82			0.76			––		(1.09	)		––
Fiscal year ended 3-31-2006			8.68		(0.09	)		1.18			1.09			––		––			––
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			8.90		(0.01	)(2)		0.01	(2)		0.00			––		––			––
Fiscal year ended 3-31-2010			6.03		0.00	(2)		2.89	(2)		2.89			––		––			(0.02	)
Fiscal year ended 3-31-2009			9.33		0.02	(2)		(3.30	)(2)		(3.28	)		––		––			(0.02	)
Fiscal year ended 3-31-2008(5)			10.05		(0.03	)(2)		0.26	(2)		0.23			––		(0.95	)		––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			9.55		0.01	(2)		0.01	(2)		0.02			––		––			––
Fiscal year ended 3-31-2010			6.47		(0.01	)(2)		3.13	(2)		3.12			––		––			(0.04	)
Fiscal year ended 3-31-2009			9.93		0.08	(2)		(3.52	)(2)		(3.44	)		––		––			(0.02	)
Fiscal year ended 3-31-2008(5)			10.52		0.10			0.30			0.40			––		(0.99	)		––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			9.39		0.00	(2)		0.00	(2)		0.00			––		––			––
Fiscal year ended 3-31-2010			6.36		0.00	(2)		3.06	(2)		3.06			––		––			(0.03	)
Fiscal year ended 3-31-2009			9.80		0.06	(2)		(3.48	)(2)		(3.42	)		––		––			(0.02	)
Fiscal year ended 3-31-2008			10.49		0.06	(2)		0.22	(2)		0.28			––		(0.97	)		––
Fiscal year ended 3-31-2007			10.65		0.04	(2)		0.89	(2)		0.93			––		(1.09	)		––
Fiscal year ended 3-31-2006			9.38		0.09			1.18			1.27			––		––			––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	––		$	8.91		0.00	%(3)	$	101			1.42	%(4)	- -0.31		%(4)		––	%		––	%		76	%
Fiscal year ended 3-31-2010			(0.02	)		8.91		47.83	(3)		97			1.44			0.19			––			––			101
Fiscal year ended 3-31-2009			(0.02	)		6.04	- -35.09		(3)		65			1.46			0.38			––			––			115
Fiscal year ended 3-31-2008			(0.96	)		9.33		1.52	(3)		88			1.35			0.36			––			––			81
Fiscal year ended 3-31-2007			(1.09	)		10.03		8.54	(3)		83			1.37			0.21			––			––			114
Fiscal year ended 3-31-2006			––			10.24		13.40	(3)		74			1.42		- -0.03				––			––			79
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.06		- -0.49			4			2.50	(4)	- -1.40		(4)		––			––			76
Fiscal year ended 3-31-2010			––			8.10		46.21			5			2.51		- -0.87				––			––			101
Fiscal year ended 3-31-2009			(0.01	)		5.54	- -35.75				4			2.48		- -0.68				––			––			115
Fiscal year ended 3-31-2008			(0.86	)		8.64		0.65			9			2.27		- -0.51				––			––			81
Fiscal year ended 3-31-2007			(1.09	)		9.34		7.45			11			2.29		- -0.71				––			––			114
Fiscal year ended 3-31-2006			––			9.70		12.40			11			2.32		- -0.94				––			––			79
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.20		- -0.36			90			2.17	(4)	- -1.06		(4)		––			––			76
Fiscal year ended 3-31-2010			––			8.23		46.70			96			2.20		- -0.57				––			––			101
Fiscal year ended 3-31-2009			(0.02	)		5.61	- -35.63				75			2.21		- -0.42				––			––			115
Fiscal year ended 3-31-2008			(0.87	)		8.74		0.78			135			2.11		- -0.34				––			––			81
Fiscal year ended 3-31-2007			(1.09	)		9.44		7.71			159			2.13		- -0.55				––			––			114
Fiscal year ended 3-31-2006			––			9.77		12.56			173			2.17		- -0.79				––			––			79
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.90		0.00	(3)		1			1.35	(4)	- -0.22		(4)		2.02	(4)	- -0.89		(4)		76
Fiscal year ended 3-31-2010			(0.02	)		8.90		48.03	(3)		1			1.35			0.26			2.16		- -0.55				101
Fiscal year ended 3-31-2009			(0.02	)		6.03	- -35.20		(3)		1			1.56			0.31			2.12		- -0.25				115
Fiscal year ended 3-31-2008(5)			(0.95	)		9.33		1.22	(3)		1			1.80	(4)	- -0.43		(4)		––			––			81	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			––			9.57		0.21			4			0.99	(4)		0.15	(4)		––			––			76
Fiscal year ended 3-31-2010			(0.04	)		9.55		48.34			3			0.99			0.55			––			––			101
Fiscal year ended 3-31-2009			(0.02	)		6.47	- -34.68				––	*		0.97			1.03			––			––			115
Fiscal year ended 3-31-2008(5)			(0.99	)		9.93		2.80			––	*		0.99	(4)		0.72	(4)		––			––			81	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			––			9.39		0.00			7			1.25	(4)	- -0.10		(4)		––			––			76
Fiscal year ended 3-31-2010			(0.03	)		9.39		48.15			5			1.24			0.39			––			––			101
Fiscal year ended 3-31-2009			(0.02	)		6.36	- -34.94				4			1.23			0.71			––			––			115
Fiscal year ended 3-31-2008			(0.97	)		9.80		1.67			2			1.22			0.60			––			––			81
Fiscal year ended 3-31-2007			(1.09	)		10.49		8.69			3			1.21			0.35			––			––			114
Fiscal year ended 3-31-2006			––			10.65		13.54			2			1.22			0.16			––			––			79

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY CUNDILL GLOBAL VALUE FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	12.63	$	0.06	(2)	$	(0.36	)(2)	$	(0.30	)	$	––		$	––		$	––
Fiscal year ended 3-31-2010			8.55		0.04	(2)		4.15	(2)		4.19			(0.08	)		––			(0.03	)
Fiscal year ended 3-31-2009			12.97		0.16			(4.55	)		(4.39	)		(0.03	)		––	*		––
Fiscal year ended 3-31-2008			16.28		0.18			(2.00	)		(1.82	)		(0.18	)		(1.31	)		––
Fiscal year ended 3-31-2007			15.52		0.13			1.49			1.62			(0.11	)		(0.75	)		––
Fiscal year ended 3-31-2006			13.79		0.17			2.21			2.38			(0.16	)		(0.49	)		––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			12.22		0.01	(2)		(0.35	)(2)		(0.34	)		––			––			––
Fiscal year ended 3-31-2010			8.31		(0.04	)(2)		3.99	(2)		3.95			(0.03	)		––			(0.01	)
Fiscal year ended 3-31-2009			12.68		0.01			(4.38	)		(4.37	)		––			––			––
Fiscal year ended 3-31-2008			15.93		0.03	(2)		(1.93	)(2)		(1.90	)		(0.04	)		(1.31	)		––
Fiscal year ended 3-31-2007			15.23		(0.01	)		1.46			1.45			––			(0.75	)		––
Fiscal year ended 3-31-2006			13.54		0.06			2.14			2.20			(0.02	)		(0.49	)		––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			12.23		0.03	(2)		(0.35	)(2)		(0.32	)		––			––			––
Fiscal year ended 3-31-2010			8.30		0.00	(2)		3.99	(2)		3.99			(0.05	)		––			(0.01	)
Fiscal year ended 3-31-2009			12.62		0.06			(4.38	)		(4.32	)		––			––			––
Fiscal year ended 3-31-2008			15.88		0.05			(1.92	)		(1.87	)		(0.08	)		(1.31	)		––
Fiscal year ended 3-31-2007			15.16		0.03			1.46			1.49			(0.02	)		(0.75	)		––
Fiscal year ended 3-31-2006			13.48		0.08			2.14			2.22			(0.05	)		(0.49	)		––
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			12.64		0.08	(2)		(0.37	)(2)		(0.29	)		––			––			––
Fiscal year ended 3-31-2010			8.55		0.06	(2)		4.16	(2)		4.22			(0.10	)		––			(0.03	)
Fiscal year ended 3-31-2009			12.93		0.10			(4.48	)		(4.38	)		––			––			––
Fiscal year ended 3-31-2008(5)			16.23		0.02	(2)		(1.87	)(2)		(1.85	)		(0.14	)		(1.31	)		––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			12.76		0.10	(2)		(0.36	)(2)		(0.26	)		––			––			––
Fiscal year ended 3-31-2010			8.64		0.07	(2)		4.22	(2)		4.29			(0.13	)		––			(0.04	)
Fiscal year ended 3-31-2009			13.11		0.05	(2)		(4.43	)(2)		(4.38	)		(0.09	)		––	*		––
Fiscal year ended 3-31-2008(5)			16.29		0.24	(2)		(1.87	)(2)		(1.63	)		(0.24	)		(1.31	)		––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			12.69		0.10	(2)		(0.37	)(2)		(0.27	)		––			––			––
Fiscal year ended 3-31-2010			8.58		0.07	(2)		4.22	(2)		4.29			(0.14	)		––			(0.04	)
Fiscal year ended 3-31-2009			13.02		0.14	(2)		(4.49	)(2)		(4.35	)		(0.09	)		––	*		––
Fiscal year ended 3-31-2008			16.33		0.25	(2)		(2.01	)(2)		(1.76	)		(0.24	)		(1.31	)		––
Fiscal year ended 3-31-2007			15.56		0.19			1.49			1.68			(0.16	)		(0.75	)		––
Fiscal year ended 3-31-2006			13.82		0.19			2.26			2.45			(0.22	)		(0.49	)		––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	––		$	12.33	- -2.38		%(3)	$	234			1.85	%(4)		1.03	%(4)		––	%		––	%		26	%
Fiscal year ended 3-31-2010			(0.11	)		12.63		49.03	(3)		255			1.90			0.57			1.92			0.55			35
Fiscal year ended 3-31-2009			(0.03	)		8.55	- -33.87		(3)		207			1.81			1.26			––			––			43
Fiscal year ended 3-31-2008			(1.49	)		12.97	- -12.07		(3)		443			1.59			1.05			––			––			39
Fiscal year ended 3-31-2007			(0.86	)		16.28		10.71	(3)		688			1.55			0.81			––			––			42
Fiscal year ended 3-31-2006			(0.65	)		15.52		17.49	(3)		625			1.62			1.09			––			––			4
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			––			11.88	- -2.78				17			2.76	(4)		0.13	(4)		––			––			26
Fiscal year ended 3-31-2010			(0.04	)		12.22		47.51			20			2.81			- -0.29			––			––			35
Fiscal year ended 3-31-2009			––			8.31	- -34.46				17			2.71			0.35			––			––			43
Fiscal year ended 3-31-2008			(1.35	)		12.68	- -12.83				37			2.48			0.18			––			––			39
Fiscal year ended 3-31-2007			(0.75	)		15.93		9.82			59			2.44			- -0.07			––			––			42
Fiscal year ended 3-31-2006			(0.51	)		15.23		16.43			57			2.51			0.21			––			––			4
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			––			11.91	- -2.62				37			2.41	(4)		0.50	(4)		––			––			26
Fiscal year ended 3-31-2010			(0.06	)		12.23		48.10			43			2.46			0.08			––			––			35
Fiscal year ended 3-31-2009			––			8.30	- -34.23				40			2.42			0.72			––			––			43
Fiscal year ended 3-31-2008			(1.39	)		12.62	- -12.65				99			2.25			0.37			––			––			39
Fiscal year ended 3-31-2007			(0.77	)		15.88		10.03			233			2.21			0.15			––			––			42
Fiscal year ended 3-31-2006			(0.54	)		15.16		16.70			211			2.28			0.43			––			––			4
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			––			12.35	- -2.29		(3)		––	*		1.59	(4)		1.25	(4)		2.45	(4)		0.39	(4)		26
Fiscal year ended 3-31-2010			(0.13	)		12.64		49.41	(3)		––	*		1.59			0.75			2.63			- -0.29			35
Fiscal year ended 3-31-2009			––			8.55	- -33.87		(3)		––	*		1.93			0.98			2.72			0.19			43
Fiscal year ended 3-31-2008(5)			(1.45	)		12.93	- -12.31		(3)		––	*		2.31	(4)		0.29	(4)		––			––			39	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			––			12.50	- -2.04				6			1.28	(4)		1.62	(4)		––			––			26
Fiscal year ended 3-31-2010			(0.17	)		12.76		49.77			6			1.31			0.93			––			––			35
Fiscal year ended 3-31-2009			(0.09	)		8.64	- -33.46				4			1.25			1.25			––			––			43
Fiscal year ended 3-31-2008(5)			(1.55	)		13.11	- -10.93				2			1.21	(4)		1.45	(4)		––			––			39	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			––			12.42	- -2.13				17			1.20	(4)		1.65	(4)		1.54	(4)		1.31	(4)		26
Fiscal year ended 3-31-2010			(0.18	)		12.69		50.14			17			1.20			1.12			1.55			0.77			35
Fiscal year ended 3-31-2009			(0.09	)		8.58	- -33.44				9			1.19			1.59			1.50			1.28			43
Fiscal year ended 3-31-2008			(1.55	)		13.02	- -11.73				8			1.20			1.42			1.45			1.17			39
Fiscal year ended 3-31-2007			(0.91	)		16.33		11.14			15			1.20			1.18			1.42			0.96			42
Fiscal year ended 3-31-2006			(0.71	)		15.56		17.99			17			1.19			1.46			1.46			1.19			4

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY DIVIDEND OPPORTUNITIES FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	13.61	$	0.06	(2)	$	(0.22	)(2)	$	(0.16	)	$	(0.06	)	$	––		$	(0.06	)
Fiscal year ended 3-31-2010			9.86		0.12	(2)		3.74	(2)		3.86			(0.11	)		––			(0.11	)
Fiscal year ended 3-31-2009			16.05		0.12	(2)		(6.19	)(2)		(6.07	)		(0.12	)		––			(0.12	)
Fiscal year ended 3-31-2008			15.70		0.13	(2)		0.54	(2)		0.67			(0.14	)		(0.18	)		(0.32	)
Fiscal year ended 3-31-2007			14.41		0.17	(2)		1.49	(2)		1.66			(0.18	)		(0.19	)		(0.37	)
Fiscal year ended 3-31-2006			12.13		0.12	(2)		2.30	(2)		2.42			(0.11	)		(0.03	)		(0.14	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			13.49		(0.01	)(2)		(0.22	)(2)		(0.23	)		––	*		––			––	*
Fiscal year ended 3-31-2010			9.79		0.00	(2)		3.71	(2)		3.71			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2009			15.93		0.00			(6.14	)		(6.14	)		––			––			––
Fiscal year ended 3-31-2008			15.63		(0.03	)		0.53			0.50			(0.02	)		(0.18	)		(0.20	)
Fiscal year ended 3-31-2007			14.34		0.05			1.47			1.52			(0.04	)		(0.19	)		(0.23	)
Fiscal year ended 3-31-2006			12.09		0.01			2.28			2.29			(0.01	)		(0.03	)		(0.04	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			13.53		0.01	(2)		(0.21	)(2)		(0.20	)		(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2010			9.81		0.04	(2)		3.71	(2)		3.75			(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2009			15.95		0.03	(2)		(6.14	)(2)		(6.11	)		(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2008			15.63		0.00			0.54			0.54			(0.04	)		(0.18	)		(0.22	)
Fiscal year ended 3-31-2007			14.34		0.07			1.47			1.54			(0.06	)		(0.19	)		(0.25	)
Fiscal year ended 3-31-2006			12.09		0.01			2.28			2.29			(0.01	)		(0.03	)		(0.04	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			13.58		0.05	(2)		(0.22	)(2)		(0.17	)		(0.06	)		––			(0.06	)
Fiscal year ended 3-31-2010			9.84		0.13	(2)		3.73	(2)		3.86			(0.12	)		––			(0.12	)
Fiscal year ended 3-31-2009			16.01		0.10			(6.17	)		(6.07	)		(0.10	)		––			(0.10	)
Fiscal year ended 3-31-2008(5)			15.76		(0.01	)(2)		0.51	(2)		0.50			(0.07	)		(0.18	)		(0.25	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			13.63		0.08	(2)		(0.22	)(2)		(0.14	)		(0.08	)		––			(0.08	)
Fiscal year ended 3-31-2010			9.88		0.17	(2)		3.75	(2)		3.92			(0.17	)		––			(0.17	)
Fiscal year ended 3-31-2009			16.07		0.08	(2)		(6.10	)(2)		(6.02	)		(0.17	)		––			(0.17	)
Fiscal year ended 3-31-2008(5)			15.76		0.20			0.47			0.67			(0.18	)		(0.18	)		(0.36	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			13.63		0.07	(2)		(0.23	)(2)		(0.16	)		(0.07	)		––			(0.07	)
Fiscal year ended 3-31-2010			9.87		0.14	(2)		3.75	(2)		3.89			(0.13	)		––			(0.13	)
Fiscal year ended 3-31-2009			16.06		0.14	(2)		(6.19	)(2)		(6.05	)		(0.14	)		––			(0.14	)
Fiscal year ended 3-31-2008			15.70		0.14	(2)		0.55	(2)		0.69			(0.15	)		(0.18	)		(0.33	)
Fiscal year ended 3-31-2007			14.41		0.12	(2)		1.55	(2)		1.67			(0.19	)		(0.19	)		(0.38	)
Fiscal year ended 3-31-2006			12.13		0.15	(2)		2.29	(2)		2.44			(0.13	)		(0.03	)		(0.16	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	13.39		- -1.17	%(3)	$	195			1.37	%(4)		0.83	%(4)		––	%		––	%		17	%
Fiscal year ended 3-31-2010			13.61		39.29	(3)		182			1.40			1.02			––			––			46
Fiscal year ended 3-31-2009			9.86		- -37.92	(3)		133			1.40			1.00			––			––			30
Fiscal year ended 3-31-2008			16.05		4.10	(3)		148			1.37			0.77			––			––			30
Fiscal year ended 3-31-2007			15.70		11.57	(3)		107			1.38			1.16			––			––			24
Fiscal year ended 3-31-2006			14.41		19.99	(3)		61			1.45			0.92			––			––			15
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			13.26		- -1.67			12			2.31	(4)	- -0.10		(4)		––			––			17
Fiscal year ended 3-31-2010			13.49		37.88			10			2.44		- -0.01				––			––			46
Fiscal year ended 3-31-2009			9.79		- -38.54			9			2.43		- -0.04				––			––			30
Fiscal year ended 3-31-2008			15.93		3.09			11			2.34		- -0.16				––			––			30
Fiscal year ended 3-31-2007			15.63		10.63			10			2.30			0.29			––			––			24
Fiscal year ended 3-31-2006			14.34		18.94			7			2.32			0.03			––			––			15
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			13.31		- -1.46			41			2.04	(4)		0.15	(4)		––			––			17
Fiscal year ended 3-31-2010			13.53		38.30			43			2.09			0.35			––			––			46
Fiscal year ended 3-31-2009			9.81		- -38.33			37			2.11			0.39			––			––			30
Fiscal year ended 3-31-2008			15.95		3.32			24			2.15			0.00			––			––			30
Fiscal year ended 3-31-2007			15.63		10.74			19			2.17			0.42			––			––			24
Fiscal year ended 3-31-2006			14.34		18.95			14			2.27			0.08			––			––			15
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			13.35		- -1.24	(3)		2			1.37	(4)		0.83	(4)		2.14	(4)		0.06	(4)		17
Fiscal year ended 3-31-2010			13.58		39.33	(3)		2			1.37			1.06			2.35			0.08			46
Fiscal year ended 3-31-2009			9.84		- -37.98	(3)		2			1.60			0.78			2.27			0.11			30
Fiscal year ended 3-31-2008(5)			16.01		3.01	(3)		2			2.17	(4)	- -0.18		(4)		––			––			30	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			13.41		- -0.99			6			0.97	(4)		1.23	(4)		––			––			17
Fiscal year ended 3-31-2010			13.63		39.80			6			0.98			1.51			––			––			46
Fiscal year ended 3-31-2009			9.88		- -37.60			2			0.99			1.75			––			––			30
Fiscal year ended 3-31-2008(5)			16.07		4.08			––	*		1.00	(4)		1.17	(4)		––			––			30	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			13.40		- -1.16			15			1.22	(4)		0.97	(4)		––			––			17
Fiscal year ended 3-31-2010			13.63		39.58			16			1.23			1.19			––			––			46
Fiscal year ended 3-31-2009			9.87		- -37.79			15			1.24			1.08			––			––			30
Fiscal year ended 3-31-2008			16.06		4.23			12			1.26			0.78			––			––			30
Fiscal year ended 3-31-2007			15.70		11.65			3			1.29			0.92			––			––			24
Fiscal year ended 3-31-2006			14.41		20.14			1			1.34			1.03			––			––			15

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY EUROPEAN OPPORTUNITIES FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	21.44	$	0.08	(1)	$	0.44	(1)	$	0.52		$	––		$	––		$	––
Fiscal year ended 3-31-2010			15.08		0.27	(1)		6.43	(1)		6.70			(0.34	)		––			––
Fiscal year ended 3-31-2009			34.70		1.18			(18.18	)		(17.00	)		(1.16	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008			40.58		0.60			(1.98	)		(1.38	)		(0.50	)		(4.00	)		––
Fiscal year ended 3-31-2007			33.58		0.31			7.11			7.42			(0.42	)		––			––
Fiscal year ended 3-31-2006			28.31		0.10			5.37			5.47			(0.20	)		––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			20.53		(0.02	)(1)		0.42	(1)		0.40			––			––			––
Fiscal year ended 3-31-2010			14.50		0.10	(1)		6.14	(1)		6.24			(0.21	)		––			––
Fiscal year ended 3-31-2009			33.35		1.06	(1)		(17.56	)(1)		(16.50	)		(0.89	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008			39.14		0.27	(1)		(1.90	)(1)		(1.63	)		(0.16	)		(4.00	)		––
Fiscal year ended 3-31-2007			32.40		0.09			6.78			6.87			(0.13	)		––			––
Fiscal year ended 3-31-2006			27.32		(0.11	)		5.19			5.08			––			––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			20.63		0.02	(1)		0.43	(1)		0.45			––			––			––
Fiscal year ended 3-31-2010			14.55		0.18	(1)		6.17	(1)		6.35			(0.27	)		––			––
Fiscal year ended 3-31-2009			33.49		1.02			(17.54	)		(16.52	)		(0.96	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008			39.28		0.32			(1.91	)		(1.59	)		(0.20	)		(4.00	)		––
Fiscal year ended 3-31-2007			32.52		0.12			6.81			6.93			(0.17	)		––			––
Fiscal year ended 3-31-2006			27.42		(0.09	)		5.19			5.10			––			––			––
Class E Shares(4)
Six-month period ended       9-30-2010 (unaudited)			21.48		0.13	(1)		0.46	(1)		0.59			––			––			––
Fiscal year ended 3-31-2010			15.08		0.39	(1)		6.44	(1)		6.83			(0.43	)		––			––
Fiscal year ended 3-31-2009			34.73		1.09			(18.00	)		(16.91	)		(1.28	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008(5)			40.69		0.73			(2.11	)		(1.38	)		(0.58	)		(4.00	)		––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			21.51		0.14	(1)		0.47	(1)		0.61			––			––			––
Fiscal year ended 3-31-2010			15.09		0.44	(1)		6.43	(1)		6.87			(0.45	)		––			––
Fiscal year ended 3-31-2009			34.80		0.95	(1)		(17.87	)(1)		(16.92	)		(1.33	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008(5)			40.73		0.35	(1)		(1.61	)(1)		(1.26	)		(0.67	)		(4.00	)		––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			21.50		0.13	(1)		0.45	(1)		0.58			––			––			––
Fiscal year ended 3-31-2010			15.10		0.33	(1)		6.48	(1)		6.81			(0.41	)		––			––
Fiscal year ended 3-31-2009			34.75		1.20			(18.14	)		(16.94	)		(1.25	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008			40.61		0.61			(1.91	)		(1.30	)		(0.56	)		(4.00	)		––
Fiscal year ended 3-31-2007			33.60		0.44			7.05			7.49			(0.48	)		––			––
Fiscal year ended 3-31-2006			28.33		0.18			5.34			5.52			(0.25	)		––			––

*Not shown due to rounding.

(1)Based on average weekly shares outstanding.

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

(3)Annualized.

(4)Class is closed to investment.

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	––		$	21.96		2.43	%(2)	$183				1.88	%(3)		0.77	%(3)		19	%
Fiscal year ended 3-31-2010			(0.34	)		21.44		44.42	(2)		189			1.98			1.35			100
Fiscal year ended 3-31-2009			(2.62	)		15.08		-49.74	(2)		136			1.84			4.03			88
Fiscal year ended 3-31-2008			(4.50	)		34.70		-4.52	(2)		390			1.58			1.43			65
Fiscal year ended 3-31-2007			(0.42	)		40.58		22.17	(2)		389			1.64			0.91			42
Fiscal year ended 3-31-2006			(0.20	)		33.58		19.41	(2)		235			1.72			0.35			62
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			––			20.93		1.95			8			2.88	(3)		- -0.20	(3)		19
Fiscal year ended 3-31-2010			(0.21	)		20.53		43.02			9			2.96			0.47			100
Fiscal year ended 3-31-2009			(2.35	)		14.50		- -50.19			8			2.73			3.59			88
Fiscal year ended 3-31-2008			(4.16	)		33.35		- -5.27			37			2.35			0.68			65
Fiscal year ended 3-31-2007			(0.13	)		39.14		21.24			52			2.40			0.27			42
Fiscal year ended 3-31-2006			––			32.40		18.59			44			2.45			- -0.30			62
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			––			21.08		2.18			16			2.51	(3)		0.18	(3)		19
Fiscal year ended 3-31-2010			(0.27	)		20.63		43.62			19			2.55			0.87			100
Fiscal year ended 3-31-2009			(2.42	)		14.55		- -50.07			16			2.47			3.55			88
Fiscal year ended 3-31-2008			(4.20	)		33.49		- -5.16			57			2.26			0.78			65
Fiscal year ended 3-31-2007			(0.17	)		39.28		21.33			65			2.32			0.32			42
Fiscal year ended 3-31-2006			––			32.52		18.60			51			2.42			- -0.29			62
Class E Shares(4)
Six-month period ended       9-30-2010 (unaudited)			––			22.07		2.75	(2)		––	*		1.32	(3)		1.28	(3)		19
Fiscal year ended 3-31-2010			(0.43	)		21.48		45.28	(2)		––	*		1.37			1.92			100
Fiscal year ended 3-31-2009			(2.74	)		15.08		-49.46	(2)		––	*		1.36			4.14			88
Fiscal year ended 3-31-2008(5)			(4.58	)		34.73		-4.52	(2)		––	*		1.28	(3)		1.78	(3)		65	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			––			22.12		2.84			37			1.19	(3)		1.41	(3)		19
Fiscal year ended 3-31-2010			(0.45	)		21.51		45.52			34			1.23			2.15			100
Fiscal year ended 3-31-2009			(2.79	)		15.09		-49.39			23			1.22			4.08			88
Fiscal year ended 3-31-2008(5)			(4.67	)		34.80		-4.24			53			1.17	(3)		1.44	(3)		65	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			––			22.08		2.70			2			1.46	(3)		1.24	(3)		19
Fiscal year ended 3-31-2010			(0.41	)		21.50		45.09			3			1.51			1.74			100
Fiscal year ended 3-31-2009			(2.71	)		15.10		-49.52			2			1.49			4.27			88
Fiscal year ended 3-31-2008			(4.56	)		34.75		-4.33			4			1.41			1.60			65
Fiscal year ended 3-31-2007			(0.48	)		40.61		22.38			7			1.44			1.14			42
Fiscal year ended 3-31-2006			(0.25	)		33.60		19.60			4			1.55			0.60			62

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL BOND FUND
	Net Asset Value, Beginning of Period			Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	10.30	$	0.19	(2)	$	0.13	(2)	$	0.32		$	(0.17	)	$	––		$	(0.17	)
Fiscal year ended 3-31-2010			9.39		0.37	(2)		0.82	(2)		1.19			(0.28	)		––			(0.28	)
Fiscal year ended 3-31-2009(5)			10.00		0.19	(2)		(0.53	)(2)		(0.34	)		(0.15	)		(0.12	)		(0.27	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			10.29		0.15	(2)		0.14	(2)		0.29			(0.13	)		––			(0.13	)
Fiscal year ended 3-31-2010			9.38		0.32	(2)		0.80	(2)		1.12			(0.21	)		––			(0.21	)
Fiscal year ended 3-31-2009(5)			10.00		0.16	(2)		(0.58	)(2)		(0.42	)		(0.08	)		(0.12	)		(0.20	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			10.29		0.15	(2)		0.14	(2)		0.29			(0.13	)		––			(0.13	)
Fiscal year ended 3-31-2010			9.38		0.30	(2)		0.82	(2)		1.12			(0.21	)		––			(0.21	)
Fiscal year ended 3-31-2009(5)			10.00		0.16	(2)		(0.58	)(2)		(0.42	)		(0.08	)		(0.12	)		(0.20	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			10.30		0.20	(2)		0.13	(2)		0.33			(0.18	)		––			(0.18	)
Fiscal year ended 3-31-2010			9.39		0.40	(2)		0.82	(2)		1.22			(0.31	)		––			(0.31	)
Fiscal year ended 3-31-2009(5)			10.00		0.25	(2)		(0.57	)(2)		(0.32	)		(0.17	)		(0.12	)		(0.29	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			10.30		0.19	(2)		0.13	(2)		0.32			(0.17	)		––			(0.17	)
Fiscal year ended 3-31-2010			9.39		0.37	(2)		0.82	(2)		1.19			(0.28	)		––			(0.28	)
Fiscal year ended 3-31-2009(5)			10.00		0.23	(2)		(0.57	)(2)		(0.34	)		(0.15	)		(0.12	)		(0.27	)

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 4, 2008 (commencement of operations of the class) through March 31, 2009.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$10.45			3.12	%(3)	$	119		0.99	%(4)		3.57	%(4)		1.27	%(4)		3.29	%(4)		16	%
Fiscal year ended 3-31-2010			10.30		12.84	(3)		89		0.99			3.95			1.32			3.62			19
Fiscal year ended 3-31-2009(5)			9.39		- -3.35	(3)		32		1.01	(4)		2.87	(4)		1.56	(4)		2.32	(4)		18
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			10.45		2.83			6		1.74	(4)		2.83	(4)		1.98	(4)		2.59	(4)		16
Fiscal year ended 3-31-2010			10.29		12.01			6		1.74			3.22			2.00			2.96			19
Fiscal year ended 3-31-2009(5)			9.38		-4.11			6		1.76	(4)		1.85	(4)		2.16	(4)		1.45	(4)		18
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			10.45		2.83			44		1.74	(4)		2.82	(4)		1.93	(4)		2.63	(4)		16
Fiscal year ended 3-31-2010			10.29		12.01			33		1.74			3.20			1.97			2.97			19
Fiscal year ended 3-31-2009(5)			9.38		-4.10			13		1.74	(4)		2.03	(4)		2.17	(4)		1.61	(4)		18
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			10.45		3.25			17		0.74	(4)		3.83	(4)		0.94	(4)		3.63	(4)		16
Fiscal year ended 3-31-2010			10.30		13.13			14		0.74			4.20			0.96			3.98			19
Fiscal year ended 3-31-2009(5)			9.39		- -3.11			5		0.76	(4)		2.80	(4)		1.21	(4)		2.35	(4)		18
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			10.45		3.12			15		0.99	(4)		3.57	(4)		1.19	(4)		3.37	(4)		16
Fiscal year ended 3-31-2010			10.30		12.84			14		0.99			3.96			1.22			3.73			19
Fiscal year ended 3-31-2009(5)			9.39		- -3.34			8		1.01	(4)		2.65	(4)		1.47	(4)		2.19	(4)		18

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY HIGH INCOME FUND
	Net Asset Value, Beginning of Period			Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	8.32	$	0.36	(2)	$	0.16	(2)	$	0.52		$	(0.36	)	$	––		$	(0.36	)
Fiscal year ended 3-31-2010			6.58		0.64	(2)		1.93	(2)		2.57			(0.66	)		(0.17	)		(0.83	)
Fiscal year ended 3-31-2009			8.01		0.65			(1.46	)		(0.81	)		(0.62	)		––			(0.62	)
Fiscal year ended 3-31-2008			8.92		0.66			(0.92	)		(0.26	)		(0.65	)		––			(0.65	)
Fiscal year ended 3-31-2007			8.60		0.62			0.32			0.94			(0.62	)		––			(0.62	)
Fiscal year ended 3-31-2006			8.69		0.58			(0.09	)		0.49			(0.58	)		––			(0.58	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			8.32		0.32	(2)		0.16	(2)		0.48			(0.32	)		––			(0.32	)
Fiscal year ended 3-31-2010			6.57		0.57	(2)		1.94	(2)		2.51			(0.59	)		(0.17	)		(0.76	)
Fiscal year ended 3-31-2009			8.01		0.59			(1.48	)		(0.89	)		(0.55	)		––			(0.55	)
Fiscal year ended 3-31-2008			8.92		0.56			(0.91	)		(0.35	)		(0.56	)		––			(0.56	)
Fiscal year ended 3-31-2007			8.60		0.53			0.32			0.85			(0.53	)		––			(0.53	)
Fiscal year ended 3-31-2006			8.69		0.50			(0.09	)		0.41			(0.50	)		––			(0.50	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			8.32		0.33	(2)		0.16	(2)		0.49			(0.33	)		––			(0.33	)
Fiscal year ended 3-31-2010			6.58		0.60	(2)		1.92	(2)		2.52			(0.61	)		(0.17	)		(0.78	)
Fiscal year ended 3-31-2009			8.01		0.58			(1.44	)		(0.86	)		(0.57	)		––			(0.57	)
Fiscal year ended 3-31-2008			8.92		0.59			(0.92	)		(0.33	)		(0.58	)		––			(0.58	)
Fiscal year ended 3-31-2007			8.60		0.55			0.32			0.87			(0.55	)		––			(0.55	)
Fiscal year ended 3-31-2006			8.69		0.51			(0.09	)		0.42			(0.51	)		––			(0.51	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			8.32		0.35	(2)		0.16	(2)		0.51			(0.35	)		––			(0.35	)
Fiscal year ended 3-31-2010			6.57		0.61	(2)		1.95	(2)		2.56			(0.64	)		(0.17	)		(0.81	)
Fiscal year ended 3-31-2009			8.00		0.63			(1.46	)		(0.83	)		(0.60	)		––			(0.60	)
Fiscal year ended 3-31-2008(5)			8.92		0.62	(2)		(0.93	)(2)		(0.31	)		(0.61	)		––			(0.61	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			8.32		0.37	(2)		0.16	(2)		0.53			(0.37	)		––			(0.37	)
Fiscal year ended 3-31-2010			6.58		0.69	(2)		1.91	(2)		2.60			(0.69	)		(0.17	)		(0.86	)
Fiscal year ended 3-31-2009			8.01		0.68			(1.45	)		(0.77	)		(0.66	)		––			(0.66	)
Fiscal year ended 3-31-2008(5)			8.92		0.79	(2)		(0.94	)(2)		(0.15	)		(0.76	)		––			(0.76	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			8.32		0.36	(2)		0.16	(2)		0.52			(0.36	)		––			(0.36	)
Fiscal year ended 3-31-2010			6.58		0.66	(2)		1.92	(2)		2.58			(0.67	)		(0.17	)		(0.84	)
Fiscal year ended 3-31-2009			8.02		0.73	(2)		(1.53	)(2)		(0.80	)		(0.64	)		––			(0.64	)
Fiscal year ended 3-31-2008			8.92		0.68			(0.92	)		(0.24	)		(0.66	)		––			(0.66	)
Fiscal year ended 3-31-2007			8.60		0.64			0.32			0.96			(0.64	)		––			(0.64	)
Fiscal year ended 3-31-2006			8.69		0.59			(0.09	)		0.50			(0.59	)		––			(0.59	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	8.48		6.32	%(3)	$	769			1.12	%(4)		8.42	%(4)		––	%		––	%		48	%
Fiscal year ended 3-31-2010			8.32		40.44	(3)		649			1.13			8.24			––			––			84
Fiscal year ended 3-31-2009			6.58	- -10.29		(3)		231			1.34			9.33			––			––			77
Fiscal year ended 3-31-2008			8.01	- -3.04		(3)		127			1.36			7.76			––			––			83
Fiscal year ended 3-31-2007			8.92		11.39	(3)		79			1.38			7.20			––			––			98
Fiscal year ended 3-31-2006			8.60		5.80	(3)		39			1.45			6.70			––			––			45
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			8.48		5.90			41			1.92	(4)		7.61	(4)		––			––			48
Fiscal year ended 3-31-2010			8.32		39.36			31			2.00			7.36			––			––			84
Fiscal year ended 3-31-2009			6.57	- -11.37				10			2.46			8.16			––			––			77
Fiscal year ended 3-31-2008			8.01	-4.06				7			2.43			6.62			––			––			83
Fiscal year ended 3-31-2007			8.92		10.24			7			2.43			6.14			––			––			98
Fiscal year ended 3-31-2006			8.60		4.85			6			2.36			5.79			––			––			45
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			8.48		5.96			316			1.80	(4)		7.73	(4)		––			––			48
Fiscal year ended 3-31-2010			8.32		39.45			249			1.83			7.50			––			––			84
Fiscal year ended 3-31-2009			6.58	- -10.99				54			2.10			8.72			––			––			77
Fiscal year ended 3-31-2008			8.01	- -3.84				14			2.18			6.86			––			––			83
Fiscal year ended 3-31-2007			8.92		10.51			17			2.18			6.39			––			––			98
Fiscal year ended 3-31-2006			8.60		5.00			17			2.21			5.94			––			––			45
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			8.48		6.18	(3)		3			1.36	(4)		8.17	(4)		1.67	(4)		7.86	(4)		48
Fiscal year ended 3-31-2010			8.32		40.29	(3)		2			1.36			8.02			1.83			7.55			84
Fiscal year ended 3-31-2009			6.57	- -10.52		(3)		1			1.60			9.12			1.81			8.91			77
Fiscal year ended 3-31-2008(5)			8.00	- -3.69		(3)		1			1.97	(4)		7.19	(4)		––			––			83	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			8.48		6.49			245			0.82	(4)		8.72	(4)		––			––			48
Fiscal year ended 3-31-2010			8.32		40.89			199			0.82			8.48			––			––			84
Fiscal year ended 3-31-2009			6.58	- -9.89				9			0.90			10.28			––			––			77
Fiscal year ended 3-31-2008(5)			8.01	- -1.90				––	*		0.99	(4)		8.11	(4)		––			––			83	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			8.48		6.34			133			1.08	(4)		8.44	(4)		––			––			48
Fiscal year ended 3-31-2010			8.32		40.49			103			1.09			8.28			––			––			84
Fiscal year ended 3-31-2009			6.58	- -10.23				38			1.14			9.69			––			––			77
Fiscal year ended 3-31-2008			8.02	- -2.78				4			1.20			7.85			––			––			83
Fiscal year ended 3-31-2007			8.92		11.60			11			1.20			7.37			––			––			98
Fiscal year ended 3-31-2006			8.60		6.00			10			1.25			6.90			––			––			45

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY INTERNATIONAL BALANCED FUND
	Net Asset Value, Beginning of Period			Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$13.59		$	0.22	(2)	$	0.58	(2)	$	0.80		$	––		$	––		$	––
Fiscal year ended 3-31-2010			9.56		0.26	(2)		3.79	(2)		4.05			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009			16.36		0.33			(6.08	)		(5.75	)		(0.57	)		(0.48	)		(1.05	)
Fiscal year ended 3-31-2008			16.81		0.37			0.14			0.51			(0.55	)		(0.41	)		(0.96	)
Fiscal year ended 3-31-2007			15.15		0.24	(2)		2.36	(2)		2.60			(0.43	)		(0.51	)		(0.94	)
Fiscal year ended 3-31-2006			14.63		0.29			1.14			1.43			(0.36	)		(0.55	)		(0.91	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			13.40		0.16	(2)		0.57	(2)		0.73			––			––			––
Fiscal year ended 3-31-2010			9.52		0.12	(2)		3.76	(2)		3.88			––	*		––			––	*
Fiscal year ended 3-31-2009			16.31		0.16			(6.01	)		(5.85	)		(0.46	)		(0.48	)		(0.94	)
Fiscal year ended 3-31-2008			16.77		0.20			0.14			0.34			(0.39	)		(0.41	)		(0.80	)
Fiscal year ended 3-31-2007			15.11		0.07	(2)		2.37	(2)		2.44			(0.27	)		(0.51	)		(0.78	)
Fiscal year ended 3-31-2006			14.59		0.08			1.18			1.26			(0.19	)		(0.55	)		(0.74	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			13.46		0.18	(2)		0.57	(2)		0.75			––			––			––
Fiscal year ended 3-31-2010			9.53		0.18	(2)		3.77	(2)		3.95			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009			16.33		0.20			(6.03	)		(5.83	)		(0.49	)		(0.48	)		(0.97	)
Fiscal year ended 3-31-2008			16.78		0.24			0.15			0.39			(0.43	)		(0.41	)		(0.84	)
Fiscal year ended 3-31-2007			15.12		0.11	(2)		2.37	(2)		2.48			(0.31	)		(0.51	)		(0.82	)
Fiscal year ended 3-31-2006			14.60		0.11			1.19			1.30			(0.23	)		(0.55	)		(0.78	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			13.59		0.23	(2)		0.58	(2)		0.81			––			––			––
Fiscal year ended 3-31-2010			9.54		0.27	(2)		3.80	(2)		4.07			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009			16.33		0.28	(2)		(6.05	)(2)		(5.77	)		(0.54	)		(0.48	)		(1.02	)
Fiscal year ended 3-31-2008(5)			16.85		0.17	(2)		0.18	(2)		0.35			(0.46	)		(0.41	)		(0.87	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			13.67		0.26	(2)		0.58	(2)		0.84			––			––			––
Fiscal year ended 3-31-2010			9.57		0.33	(2)		3.80	(2)		4.13			(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2009			16.38		0.35	(2)		(6.05	)(2)		(5.70	)		(0.63	)		(0.48	)		(1.11	)
Fiscal year ended 3-31-2008(5)			16.86		0.30	(2)		0.23	(2)		0.53			(0.60	)		(0.41	)		(1.01	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			13.63		0.24	(2)		0.58	(2)		0.82			––			––			––
Fiscal year ended 3-31-2010			9.57		0.28	(2)		3.80	(2)		4.08			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009			16.38		0.45			(6.19	)		(5.74	)		(0.59	)		(0.48	)		(1.07	)
Fiscal year ended 3-31-2008			16.82		0.39			0.14			0.53			(0.56	)		(0.41	)		(0.97	)
Fiscal year ended 3-31-2007			15.15		0.25	(2)		2.37	(2)		2.62			(0.44	)		(0.51	)		(0.95	)
Fiscal year ended 3-31-2006			14.63		0.29	(2)		1.14	(2)		1.43			(0.36	)		(0.55	)		(0.91	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$14.39			5.89	%(3)	$	193		1.47	%(4)		3.35	%(4)		––	%		––	%		43	%
Fiscal year ended 3-31-2010			13.59		42.40	(3)		183		1.51			2.05			––			––			131
Fiscal year ended 3-31-2009			9.56	- -36.02		(3)		128		1.46			2.45			––			––			22
Fiscal year ended 3-31-2008			16.36		2.84	(3)		260		1.33			2.11			––			––			24
Fiscal year ended 3-31-2007			16.81		17.48	(3)		235		1.38			1.52			––			––			22
Fiscal year ended 3-31-2006			15.15		10.14	(3)		112		1.45			1.94			––			––			27
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			14.13		5.45			8		2.46	(4)		2.37	(4)		––			––			43
Fiscal year ended 3-31-2010			13.40		40.79			8		2.56			1.04			––			––			131
Fiscal year ended 3-31-2009			9.52	- -36.62				6		2.44			1.48			––			––			22
Fiscal year ended 3-31-2008			16.31		1.85			13		2.28			1.15			––			––			24
Fiscal year ended 3-31-2007			16.77		16.38			12		2.35			0.46			––			––			22
Fiscal year ended 3-31-2006			15.11		8.93			6		2.59			0.73			––			––			27
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			14.21		5.57			22		2.15	(4)		2.68	(4)		––			––			43
Fiscal year ended 3-31-2010			13.46		41.42			24		2.15			1.44			––			––			131
Fiscal year ended 3-31-2009			9.53	- -36.50				20		2.13			1.76			––			––			22
Fiscal year ended 3-31-2008			16.33		2.14			42		2.04			1.34			––			––			24
Fiscal year ended 3-31-2007			16.78		16.64			30		2.12			0.70			––			––			22
Fiscal year ended 3-31-2006			15.12		9.21			9		2.29			0.98			––			––			27
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			14.40		5.96	(3)		1		1.33	(4)		3.49	(4)		2.15	(4)		2.67	(4)		43
Fiscal year ended 3-31-2010			13.59		42.72	(3)		1		1.33			2.19			2.35			1.17			131
Fiscal year ended 3-31-2009			9.54	- -36.11		(3)		1		1.63			2.10			1.84			1.90			22
Fiscal year ended 3-31-2008(5)			16.33		1.92	(3)		1		2.23	(4)		1.00	(4)		––			––			24	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			14.51		6.15			38		1.00	(4)		3.87	(4)		––			––			43
Fiscal year ended 3-31-2010			13.67		43.15			45		1.00			2.63			––			––			131
Fiscal year ended 3-31-2009			9.57	- -35.72				34		0.99			2.72			––			––			22
Fiscal year ended 3-31-2008(5)			16.38		2.99			45		0.98	(4)		2.14	(4)		––			––			24	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			14.45		6.02			6		1.26	(4)		3.58	(4)		––			––			43
Fiscal year ended 3-31-2010			13.63		42.69			6		1.26			2.10			––			––			131
Fiscal year ended 3-31-2009			9.57	- -35.95				1		1.33			2.75			––			––			22
Fiscal year ended 3-31-2008			16.38		2.96			3		1.26			2.06			––			––			24
Fiscal year ended 3-31-2007			16.82		17.61			2		1.24			1.64			––			––			22
Fiscal year ended 3-31-2006			15.15		10.18			1		1.41			1.99			––			––			27

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY INTERNATIONAL CORE EQUITY FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)	$14.84		$	0.16	(2)	$	0.37	(2)	$	0.53		$	––		$	––		$	––
Fiscal year ended 3-31-2010		9.54		0.13	(2)		5.27	(2)		5.40			(0.10	)		––			(0.10	)
Fiscal year ended 3-31-2009		17.11		0.17			(7.22	)		(7.05	)		(0.19	)		(0.33	)		(0.52	)
Fiscal year ended 3-31-2008		17.63		0.10			0.98			1.08			(0.09	)		(1.51	)		(1.60	)
Fiscal year ended 3-31-2007		15.73		0.10	(2)		2.59	(2)		2.69			(0.06	)		(0.73	)		(0.79	)
Fiscal year ended 3-31-2006		11.61		(0.06	)		4.18			4.12			––			––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)		13.59		0.09	(2)		0.33	(2)		0.42			––			––			––
Fiscal year ended 3-31-2010		8.77		0.02	(2)		4.82	(2)		4.84			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009		15.74		0.05			(6.62	)		(6.57	)		(0.07	)		(0.33	)		(0.40	)
Fiscal year ended 3-31-2008		16.31		(0.02	)		0.88			0.86			––			(1.43	)		(1.43	)
Fiscal year ended 3-31-2007		14.67		0.00	(2)		2.37	(2)		2.37			––			(0.73	)		(0.73	)
Fiscal year ended 3-31-2006		10.91		(0.12	)		3.88			3.76			––			––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)		13.58		0.10	(2)		0.35	(2)		0.45			––			––			––
Fiscal year ended 3-31-2010		8.76		0.05	(2)		4.82	(2)		4.87			(0.05	)		––			(0.05	)
Fiscal year ended 3-31-2009		15.72		0.10			(6.63	)		(6.53	)		(0.10	)		(0.33	)		(0.43	)
Fiscal year ended 3-31-2008		16.30		0.00	(2)		0.88	(2)		0.88			––			(1.46	)		(1.46	)
Fiscal year ended 3-31-2007		14.65		(0.01	)(2)		2.39	(2)		2.38			––			(0.73	)		(0.73	)
Fiscal year ended 3-31-2006		10.90		(0.02	)		3.77			3.75			––			––			––
Class E Shares
Six-month period ended       9-30-2010 (unaudited)		14.90		0.15	(2)		0.39	(2)		0.54			––			––			––
Fiscal year ended 3-31-2010		9.59		0.16	(2)		5.27	(2)		5.43			(0.12	)		––			(0.12	)
Fiscal year ended 3-31-2009		17.05		0.16			(7.20	)		(7.04	)		(0.09	)		(0.33	)		(0.42	)
Fiscal year ended 3-31-2008(5)		17.63		(0.02	)		0.98			0.96			(0.03	)		(1.51	)		(1.54	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)		14.90		0.18	(2)		0.39	(2)		0.57			––			––			––
Fiscal year ended 3-31-2010		9.58		0.20	(2)		5.30	(2)		5.50			(0.18	)		––			(0.18	)
Fiscal year ended 3-31-2009		17.20		0.20			(7.23	)		(7.03	)		(0.26	)		(0.33	)		(0.59	)
Fiscal year ended 3-31-2008(5)		17.71		0.16			1.01			1.17			(0.17	)		(1.51	)		(1.68	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)		14.92		0.17	(2)		0.38	(2)		0.55			––			––			––
Fiscal year ended 3-31-2010		9.59		0.04	(2)		5.43	(2)		5.47			(0.14	)		––			(0.14	)
Fiscal year ended 3-31-2009		17.19		0.19			(7.24	)		(7.05	)		(0.22	)		(0.33	)		(0.55	)
Fiscal year ended 3-31-2008		17.70		0.15	(2)		0.97	(2)		1.12			(0.12	)		(1.51	)		(1.63	)
Fiscal year ended 3-31-2007		15.79		0.12	(2)		2.59	(2)		2.71			(0.07	)		(0.73	)		(0.80	)
Fiscal year ended 3-31-2006		11.64		(0.06	)		4.21			4.15			––			––			––

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$15.37			3.57	%(3)	$	499		1.50	%(4)		2.24	%(4)		––	%		––	%		54	%
Fiscal year ended 3-31-2010			14.84		56.68	(3)		430		1.59			1.09			––			––			94
Fiscal year ended 3-31-2009			9.54	-41.28		(3)		152		1.64			1.44			––			––			108
Fiscal year ended 3-31-2008			17.11		5.39	(3)		222		1.53			0.65			––			––			101
Fiscal year ended 3-31-2007			17.63		17.35	(3)		161		1.56			0.63			––			––			108
Fiscal year ended 3-31-2006			15.73		35.49	(3)		67		1.82			0.14			––			––			90
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			14.01		3.09			17		2.39	(4)		1.41	(4)		––			––			54
Fiscal year ended 3-31-2010			13.59		55.20			17		2.54			0.19			––			––			94
Fiscal year ended 3-31-2009			8.77	-41.84				8		2.55			0.59			––			––			108
Fiscal year ended 3-31-2008			15.74		4.56			16		2.35		- -0.09				––			––			101
Fiscal year ended 3-31-2007			16.31		16.39			17		2.35		- -0.03				––			––			108
Fiscal year ended 3-31-2006			14.67		34.46			15		2.62		- -0.41				––			––			90
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			14.03		3.31			97		2.17	(4)		1.56	(4)		––			––			54
Fiscal year ended 3-31-2010			13.58		55.61			85		2.21			0.47			––			––			94
Fiscal year ended 3-31-2009			8.76	-41.64				30		2.29			0.81			––			––			108
Fiscal year ended 3-31-2008			15.72		4.68			45		2.20		- -0.02				––			––			101
Fiscal year ended 3-31-2007			16.30		16.48			34		2.29		- -0.08				––			––			108
Fiscal year ended 3-31-2006			14.65		34.40			15		2.58		- -0.50				––			––			90
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			15.44		3.62	(3)		2		1.53	(4)		2.17	(4)		2.28	(4)		1.42	(4)		54
Fiscal year ended 3-31-2010			14.90		56.68	(3)		2		1.53			1.23			2.53			0.23			94
Fiscal year ended 3-31-2009			9.59	-41.34		(3)		1		1.87			1.22			2.74			0.35			108
Fiscal year ended 3-31-2008(5)			17.05		4.70	(3)		1		2.38	(4)	- -0.51		(4)		––			––			101	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			15.47		3.83			168		1.10	(4)		2.52	(4)		––			––			54
Fiscal year ended 3-31-2010			14.90		57.44			93		1.12			1.55			––			––			94
Fiscal year ended 3-31-2009			9.58	-40.98				33		1.12			1.86			––			––			108
Fiscal year ended 3-31-2008(5)			17.20		5.83			23		1.13	(4)		0.69	(4)		––			––			101	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			15.47		3.69			90		1.36	(4)		2.41	(4)		––			––			54
Fiscal year ended 3-31-2010			14.92		57.10			88		1.36			0.82			––			––			94
Fiscal year ended 3-31-2009			9.59	-41.12				11		1.38			1.64			––			––			108
Fiscal year ended 3-31-2008			17.19		5.50			10		1.39			0.77			––			––			101
Fiscal year ended 3-31-2007			17.70		17.47			4		1.45			0.76			––			––			108
Fiscal year ended 3-31-2006			15.79		35.65			1		1.72			0.13			––			––			90

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY INTERNATIONAL GROWTH FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$29.04		$	0.22	(2)	$	0.80	(2)	$	1.02		$	––		$	––	$	––
Fiscal year ended 3-31-2010			19.83		0.27	(2)		9.18	(2)		9.45			(0.24	)		––		(0.24	)
Fiscal year ended 3-31-2009			36.27		0.34			(16.52	)		(16.18	)		(0.26	)		––		(0.26	)
Fiscal year ended 3-31-2008			34.60		0.15			1.59			1.74			(0.07	)		––		(0.07	)
Fiscal year ended 3-31-2007			29.74		0.19			4.72			4.91			(0.05	)		––		(0.05	)
Fiscal year ended 3-31-2006			22.86		0.08			6.97			7.05			(0.17	)		––		(0.17	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			26.32		0.07	(2)		0.73	(2)		0.80			––			––		––
Fiscal year ended 3-31-2010			18.06		0.02	(2)		8.29	(2)		8.31			(0.05	)		––		(0.05	)
Fiscal year ended 3-31-2009			33.04		0.03	(2)		(14.98	)(2)		(14.95	)		(0.03	)		––		(0.03	)
Fiscal year ended 3-31-2008			31.79		(0.23	)(2)		1.48	(2)		1.25			––			––		––
Fiscal year ended 3-31-2007			27.58		(0.15	)(2)		4.36	(2)		4.21			––			––		––
Fiscal year ended 3-31-2006			21.30		(0.17	)(2)		6.45	(2)		6.28			––			––		––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			26.27		0.07	(2)		0.73	(2)		0.80			––			––		––
Fiscal year ended 3-31-2010			18.02		0.01	(2)		8.30	(2)		8.31			(0.06	)		––		(0.06	)
Fiscal year ended 3-31-2009			32.97		0.05	(2)		(14.94	)(2)		(14.89	)		(0.06	)		––		(0.06	)
Fiscal year ended 3-31-2008			31.71		(0.25	)		1.51			1.26			––			––		––
Fiscal year ended 3-31-2007			27.52		(0.15	)		4.34			4.19			––			––		––
Fiscal year ended 3-31-2006			21.20		(0.09	)(2)		6.41	(2)		6.32			––			––		––
Class E Shares(5)
Six-month period ended       9-30-2010 (unaudited)			29.04		0.25	(2)		0.80	(2)		1.05			––			––		––
Fiscal year ended 3-31-2010			19.83		0.35	(2)		9.18	(2)		9.53			(0.32	)		––		(0.32	)
Fiscal year ended 3-31-2009			36.28		0.37			(16.50	)		(16.13	)		(0.32	)		––		(0.32	)
Fiscal year ended 3-31-2008(6)			34.54		0.19			1.67			1.86			(0.12	)		––		(0.12	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			29.26		0.31	(2)		0.78	(2)		1.09			––			––		––
Fiscal year ended 3-31-2010			19.98		0.28	(2)		9.35	(2)		9.63			(0.35	)		––		(0.35	)
Fiscal year ended 3-31-2009			36.57		0.38			(16.60	)		(16.22	)		(0.37	)		––		(0.37	)
Fiscal year ended 3-31-2008(6)			34.52		0.10			2.12			2.22			(0.17	)		––		(0.17	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			29.06		0.25	(2)		0.81	(2)		1.06			––			––		––
Fiscal year ended 3-31-2010			19.86		0.28	(2)		9.23	(2)		9.51			(0.31	)		––		(0.31	)
Fiscal year ended 3-31-2009			36.27		0.35			(16.49	)		(16.14	)		(0.27	)		––		(0.27	)
Fiscal year ended 3-31-2008			34.59		0.31			1.42			1.73			(0.05	)		––		(0.05	)
Fiscal year ended 3-31-2007			29.74		0.28			4.63			4.91			(0.06	)		––		(0.06	)
Fiscal year ended 3-31-2006			22.86		0.18	(2)		6.87	(2)		7.05			(0.17	)		––		(0.17	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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)Class is closed to investment.

(6)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(7)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$30.06			3.51	%(3)	$	123			1.60	%(4)		1.56	%(4)		––	%		––	%		41	%
Fiscal year ended 3-31-2010			29.04		47.70	(3)		120			1.61			1.04			––			––			80
Fiscal year ended 3-31-2009			19.83	-44.65		(3)		83			1.57			1.09			––			––			93
Fiscal year ended 3-31-2008			36.27		5.01	(3)		163			1.42			0.35			––			––			103
Fiscal year ended 3-31-2007			34.60		16.51	(3)		165			1.46			0.55			––			––			97
Fiscal year ended 3-31-2006			29.74		30.92	(3)		156			1.59			0.25			––			––			75
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			27.12		3.04			4			2.61	(4)		0.58	(4)		––			––			41
Fiscal year ended 3-31-2010			26.32		46.03			4			2.69			0.06			––			––			80
Fiscal year ended 3-31-2009			18.06	-45.25				4			2.62			0.11			––			––			93
Fiscal year ended 3-31-2008			33.04		3.96			10			2.45			- -0.67			––			––			103
Fiscal year ended 3-31-2007			31.79		15.23			11			2.55			- -0.53			––			––			97
Fiscal year ended 3-31-2006			27.58		29.48			13			2.74			- -0.72			––			––			75
Class C Shares
Six-month period ended 9-30-2010 (unaudited)			27.07		3.05			29			2.59	(4)		0.59	(4)		––			––			41
Fiscal year ended 3-31-2010			26.27		46.15			31			2.62			0.07			––			––			80
Fiscal year ended 3-31-2009			18.02	-45.19				24			2.54			0.16			––			––			93
Fiscal year ended 3-31-2008			32.97		3.97			53			2.42			- -0.65			––			––			103
Fiscal year ended 3-31-2007			31.71		15.23			57			2.54			- -0.53			––			––			97
Fiscal year ended 3-31-2006			27.52		29.81			56			2.43			- -0.39			––			––			75
Class E Shares(5)
Six-month period ended 9-30-2010 (unaudited)			30.09		3.62	(3)		––	*		1.36	(4)		1.80	(4)		––			––			41
Fiscal year ended 3-31-2010			29.04		48.11	(3)		––	*		1.32			1.31			––			––			80
Fiscal year ended 3-31-2009			19.83	-44.52		(3)		––	*		1.34			1.31			––			––			93
Fiscal year ended 3-31-2008(6)			36.28		5.34	(3)		––	*		1.27	(4)		0.49	(4)		––			––			103	(7)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			30.35		3.72			19			1.21	(4)		2.24	(4)		––			––			41
Fiscal year ended 3-31-2010			29.26		48.28			36			1.18			1.22			––			––			80
Fiscal year ended 3-31-2009			19.98	-44.42				15			1.18			1.37			––			––			93
Fiscal year ended 3-31-2008(6)			36.57		6.39			21			1.15	(4)		0.32	(4)		––			––			103	(7)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			30.12		3.65			3			1.42	(4)		1.77	(4)		1.52	(4)		1.67	(4)		41
Fiscal year ended 3-31-2010			29.06		47.95			3			1.42			1.16			1.48			1.10			80
Fiscal year ended 3-31-2009			19.86	-44.55				2			1.43			1.21			1.50			1.14			93
Fiscal year ended 3-31-2008			36.27		4.99			3			1.44			0.31			––			––			103
Fiscal year ended 3-31-2007			34.59		16.50			5			1.46			0.65			––			––			97
Fiscal year ended 3-31-2006			29.74		30.95			6			1.58			0.81			––			––			75

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LARGE CAP GROWTH FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)	$11.85		$(0.01		)(2)	$	(0.19	)(2)	$	(0.20	)	$	––		$	––		$	––
Fiscal year ended 3-31-2010		8.71		0.04	(2)		3.15	(2)		3.19			(0.05	)		––			(0.05	)
Fiscal year ended 3-31-2009		13.17		0.04	(2)		(4.49	)(2)		(4.45	)		(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2008		11.82		(0.02	)(2)		1.49	(2)		1.47			––			(0.12	)		(0.12	)
Fiscal year ended 3-31-2007		11.61		(0.03	)		0.24			0.21			––			––			––
Fiscal year ended 3-31-2006		9.54		(0.06	)		2.13			2.07			––			––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)		10.55		(0.07	)(2)		(0.16	)(2)		(0.23	)		––			––			––
Fiscal year ended 3-31-2010		7.82		(0.09	)(2)		2.82	(2)		2.73			––			––			––
Fiscal year ended 3-31-2009		11.98		(0.10	)(2)		(4.06	)(2)		(4.16	)		––			––			––
Fiscal year ended 3-31-2008		10.89		(0.16	)		1.37			1.21			––			(0.12	)		(0.12	)
Fiscal year ended 3-31-2007		10.83		(0.12	)		0.18			0.06			––			––			––
Fiscal year ended 3-31-2006		8.99		(0.14	)		1.98			1.84			––			––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)		10.95		(0.05	)(2)		(0.17	)(2)		(0.22	)		––			––			––
Fiscal year ended 3-31-2010		8.09		(0.05	)(2)		2.91	(2)		2.86			––			––			––
Fiscal year ended 3-31-2009		12.33		(0.05	)(2)		(4.19	)(2)		(4.24	)		––			––			––
Fiscal year ended 3-31-2008		11.18		(0.13	)(2)		1.40	(2)		1.27			––			(0.12	)		(0.12	)
Fiscal year ended 3-31-2007		11.09		(0.12	)		0.21			0.09			––			––			––
Fiscal year ended 3-31-2006		9.18		(0.10	)		2.01			1.91			––			––			––
Class E Shares
Six-month period ended       9-30-2010 (unaudited)		11.84		(0.01	)(2)		(0.18	)(2)		(0.19	)		––			––			––
Fiscal year ended 3-31-2010		8.70		0.03	(2)		3.16	(2)		3.19			(0.05	)		––			(0.05	)
Fiscal year ended 3-31-2009		13.16		0.04	(2)		(4.49	)(2)		(4.45	)		(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2008(5)		11.84		(0.02	)(2)		1.46	(2)		1.44			––			(0.12	)		(0.12	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)		12.12		0.01	(2)		(0.20	)(2)		(0.19	)		––			––			––
Fiscal year ended 3-31-2010		8.91		0.06	(2)		3.22	(2)		3.28			(0.07	)		––			(0.07	)
Fiscal year ended 3-31-2009		13.46		0.06	(2)		(4.58	)(2)		(4.52	)		(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2008(5)		11.99		0.01	(2)		1.58	(2)		1.59			––			(0.12	)		(0.12	)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)		11.74		(0.03	)(2)		(0.18	)(2)		(0.21	)		––			––			––
Fiscal year ended 3-31-2010		8.63		0.00	(2)		3.12	(2)		3.12			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2009		13.08		0.02	(2)		(4.47	)(2)		(4.45	)		––			––			––
Fiscal year ended 3-31-2008		11.78		(0.06	)(2)		1.48	(2)		1.42			––			(0.12	)		(0.12	)
Fiscal year ended 3-31-2007		11.60		(0.06	)		0.24			0.18			––			––			––
Fiscal year ended 3-31-2006(7)		11.27		(0.03	)		0.36			0.33			––			––			––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)		12.01		0.00	(2)		(0.19	)(2)		(0.19	)		––			––			––
Fiscal year ended 3-31-2010		8.83		0.05	(2)		3.19	(2)		3.24			(0.06	)		––			(0.06	)
Fiscal year ended 3-31-2009		13.35		0.05	(2)		(4.55	)(2)		(4.50	)		(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2008		11.97		(0.01	)(2)		1.51	(2)		1.50			––			(0.12	)		(0.12	)
Fiscal year ended 3-31-2007		11.74		(0.01	)		0.24			0.23			––			––			––
Fiscal year ended 3-31-2006		9.62		(0.04	)		2.16			2.12			––			––			––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$11.65		- -1.69		%(3)	$454				1.15	%(4)	- -0.13		%(4)		1.28	%(4)	- -0.26		%(4)		40	%
Fiscal year ended 3-31-2010			11.85		36.63	(3)		464			1.15			0.33			1.30			0.18			60
Fiscal year ended 3-31-2009			8.71	- -33.80		(3)		335			1.15			0.40			1.34			0.21			76
Fiscal year ended 3-31-2008			13.17		12.32	(3)		278			1.15		- -0.13				1.29		- -0.27				79
Fiscal year ended 3-31-2007			11.82		1.81	(3)		162			1.20		- -0.44				1.39		- -0.44				93
Fiscal year ended 3-31-2006			11.61		21.70	(3)		157			1.41		- -0.62				––			––			79
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			10.32	- -2.18				9			2.36	(4)	- -1.34		(4)		––			––			40
Fiscal year ended 3-31-2010			10.55		34.91			9			2.41		- -0.94				––			––			60
Fiscal year ended 3-31-2009			7.82	- -34.73				7			2.49		- -1.01				––			––			76
Fiscal year ended 3-31-2008			11.98		10.98			13			2.32		- -1.28				––			––			79
Fiscal year ended 3-31-2007			10.89		0.55			12			2.42		- -1.48				––			––			93
Fiscal year ended 3-31-2006			10.83		20.47			11			2.45		- -1.65				––			––			79
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			10.73	- -2.01				46			2.00	(4)	- -0.98		(4)		––			––			40
Fiscal year ended 3-31-2010			10.95		35.35			50			2.02		- -0.54				––			––			60
Fiscal year ended 3-31-2009			8.09	- -34.39				33			2.08		- -0.54				––			––			76
Fiscal year ended 3-31-2008			12.33		11.23			34			2.07		- -1.04				––			––			79
Fiscal year ended 3-31-2007			11.18		0.81			19			2.18		- -1.23				––			––			93
Fiscal year ended 3-31-2006			11.09		20.81			17			2.21		- -1.42				––			––			79
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			11.65	- -1.61		(3)		1			1.15	(4)	- -0.13		(4)		1.91	(4)	- -0.89		(4)		40
Fiscal year ended 3-31-2010			11.84		36.67	(3)		1			1.15			0.31			2.05		- -0.59				60
Fiscal year ended 3-31-2009			8.70	- -33.83		(3)		1			1.15			0.38			2.27		- -0.74				76
Fiscal year ended 3-31-2008(5)			13.16		12.05	(3)		––	*		1.15	(4)	- -0.13		(4)		1.75	(4)	- -0.73		(4)		79	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			11.93	- -1.57				178			0.92	(4)		0.12	(4)		––			––			40
Fiscal year ended 3-31-2010			12.12		36.86			270			0.92			0.56			––			––			60
Fiscal year ended 3-31-2009			8.91	- -33.61				102			0.92			0.87			––			––			76
Fiscal year ended 3-31-2008(5)			13.46		13.15			2			0.96	(4)		0.09	(4)		––			––			79	(6)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)			11.53	- -1.79				15			1.46	(4)	- -0.45		(4)		––			––			40
Fiscal year ended 3-31-2010			11.74		36.18			13			1.46			0.00			––			––			60
Fiscal year ended 3-31-2009			8.63	- -34.02				4			1.47			0.15			––			––			76
Fiscal year ended 3-31-2008			13.08		11.94			1			1.49		- -0.48				––			––			79
Fiscal year ended 3-31-2007			11.78		1.55			––	*		1.51		- -0.57				––			––			93
Fiscal year ended 3-31-2006(7)			11.60		2.93			––	*		1.56	(4)	- -0.88		(4)		––			––			79	(8)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			11.82	- -1.58				109			1.06	(4)	- -0.04		(4)		1.17	(4)	- -0.15		(4)		40
Fiscal year ended 3-31-2010			12.01		36.69			112			1.06			0.41			1.17			0.30			60
Fiscal year ended 3-31-2009			8.83	- -33.74				79			1.06			0.42			1.19			0.29			76
Fiscal year ended 3-31-2008			13.35		12.42			109			1.06		- -0.04				1.19		- -0.17				79
Fiscal year ended 3-31-2007			11.97		1.96			59			1.08		- -0.13				1.19		- -0.24				93
Fiscal year ended 3-31-2006			11.74		22.04			66			1.20		- -0.40				1.21		- -0.41				79

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

(7)For the period from December 29, 2005 (commencement of operations of the class) through March 31, 2006.

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

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LIMITED-TERM BOND FUND
	Net Asset Value, Beginning of Period			Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations		Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	11.06	$	0.13	(2)	$	0.26	(2)	$	0.39	$	(0.14	)	$	––		$	(0.14	)
Fiscal year ended 3-31-2010			10.77		0.31	(2)		0.33	(2)		0.64		(0.32	)		(0.03	)		(0.35	)
Fiscal year ended 3-31-2009			10.48		0.31			0.29			0.60		(0.31	)		––			(0.31	)
Fiscal year ended 3-31-2008			10.15		0.38			0.33			0.71		(0.38	)		––			(0.38	)
Fiscal year ended 3-31-2007			10.00		0.33			0.15			0.48		(0.33	)		––			(0.33	)
Fiscal year ended 3-31-2006			10.14		0.30			(0.14	)		0.16		(0.30	)		––			(0.30	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			11.06		0.08	(2)		0.26	(2)		0.34		(0.09	)		––			(0.09	)
Fiscal year ended 3-31-2010			10.77		0.22	(2)		0.33	(2)		0.55		(0.23	)		(0.03	)		(0.26	)
Fiscal year ended 3-31-2009			10.48		0.23			0.29			0.52		(0.23	)		––			(0.23	)
Fiscal year ended 3-31-2008			10.15		0.29			0.33			0.62		(0.29	)		––			(0.29	)
Fiscal year ended 3-31-2007			10.00		0.24			0.15			0.39		(0.24	)		––			(0.24	)
Fiscal year ended 3-31-2006			10.14		0.21			(0.14	)		0.07		(0.21	)		––			(0.21	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			11.06		0.09	(2)		0.26	(2)		0.35		(0.10	)		––			(0.10	)
Fiscal year ended 3-31-2010			10.77		0.24	(2)		0.33	(2)		0.57		(0.25	)		(0.03	)		(0.28	)
Fiscal year ended 3-31-2009			10.48		0.24			0.29			0.53		(0.24	)		––			(0.24	)
Fiscal year ended 3-31-2008			10.15		0.29			0.33			0.62		(0.29	)		––			(0.29	)
Fiscal year ended 3-31-2007			10.00		0.24			0.15			0.39		(0.24	)		––			(0.24	)
Fiscal year ended 3-31-2006			10.14		0.21			(0.14	)		0.07		(0.21	)		––			(0.21	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			11.06		0.13	(2)		0.26	(2)		0.39		(0.14	)		––			(0.14	)
Fiscal year ended 3-31-2010			10.77		0.31	(2)		0.34	(2)		0.65		(0.33	)		(0.03	)		(0.36	)
Fiscal year ended 3-31-2009			10.48		0.34			0.29			0.63		(0.34	)		––			(0.34	)
Fiscal year ended 3-31-2008(5)			10.15		0.40			0.33			0.73		(0.40	)		––			(0.40	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			11.06		0.14	(2)		0.26	(2)		0.40		(0.15	)		––			(0.15	)
Fiscal year ended 3-31-2010			10.77		0.35	(2)		0.33	(2)		0.68		(0.36	)		(0.03	)		(0.39	)
Fiscal year ended 3-31-2009			10.48		0.35			0.29			0.64		(0.35	)		––			(0.35	)
Fiscal year ended 3-31-2008(5)			10.15		0.49			0.33			0.82		(0.49	)		––			(0.49	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			11.06		0.13	(2)		0.26	(2)		0.39		(0.14	)		––			(0.14	)
Fiscal year ended 3-31-2010			10.77		0.32	(2)		0.33	(2)		0.65		(0.33	)		(0.03	)		(0.36	)
Fiscal year ended 3-31-2009			10.48		0.32			0.29			0.61		(0.32	)		––			(0.32	)
Fiscal year ended 3-31-2008			10.15		0.39			0.33			0.72		(0.39	)		––			(0.39	)
Fiscal year ended 3-31-2007			10.00		0.34			0.15			0.49		(0.34	)		––			(0.34	)
Fiscal year ended 3-31-2006			10.14		0.31			(0.14	)		0.17		(0.31	)		––			(0.31	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	11.31		3.54	%(3)	$	777			0.94	%(4)		2.28	%(4)		––	%		––	%		22	%
Fiscal year ended 3-31-2010			11.06		6.03	(3)		570			1.00			2.84			––			––			33
Fiscal year ended 3-31-2009			10.77		5.89	(3)		289			0.91			2.89			1.06			2.74			20
Fiscal year ended 3-31-2008			10.48		7.13	(3)		72			1.19			3.70			1.27			3.62			86
Fiscal year ended 3-31-2007			10.15		4.89	(3)		35			1.33			3.30			––			––			41
Fiscal year ended 3-31-2006			10.00		1.59	(3)		33			1.31			2.98			––			––			28
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			11.31		3.11			27			1.76	(4)		1.46	(4)		––			––			22
Fiscal year ended 3-31-2010			11.06		5.16			21			1.82			2.06			––			––			33
Fiscal year ended 3-31-2009			10.77		5.04			20			1.73			2.08			1.88			1.93			20
Fiscal year ended 3-31-2008			10.48		6.21			6			2.07			2.83			2.15			2.75			86
Fiscal year ended 3-31-2007			10.15		3.94			5			2.23			2.39			––			––			41
Fiscal year ended 3-31-2006			10.00		0.68			5			2.22			2.06			––			––			28
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			11.31		3.17			267			1.65	(4)		1.58	(4)		––			––			22
Fiscal year ended 3-31-2010			11.06		5.27			213			1.71			2.14			––			––			33
Fiscal year ended 3-31-2009			10.77		5.11			157			1.59			2.12			1.74			1.97			20
Fiscal year ended 3-31-2008			10.48		6.19			15			2.09			2.81			2.17			2.73			86
Fiscal year ended 3-31-2007			10.15		3.98			12			2.20			2.42			––			––			41
Fiscal year ended 3-31-2006			10.00		0.73			13			2.17			2.12			––			––			28
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			11.31		3.49	(3)		1			1.00	(4)		2.15	(4)		1.21	(4)		1.94	(4)		22
Fiscal year ended 3-31-2010			11.06		6.07	(3)		––	*		0.98			2.78			––			––			33
Fiscal year ended 3-31-2009			10.77		6.15	(3)		––	*		0.73			3.21			0.88			3.06			20
Fiscal year ended 3-31-2008(5)			10.48		7.31	(3)		––	*		0.98	(4)		3.93	(4)		1.06	(4)		3.85	(4)		86	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			11.31		3.67			66			0.69	(4)		2.50	(4)		––			––			22
Fiscal year ended 3-31-2010			11.06		6.35			37			0.73			3.09			––			––			33
Fiscal year ended 3-31-2009			10.77		6.26			6			0.57			3.22			0.72			3.07			20
Fiscal year ended 3-31-2008(5)			10.48		8.31			––	*		0.89	(4)		4.02	(4)		0.97	(4)		3.94	(4)		86	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			11.31		3.55			73			0.94	(4)		2.29	(4)		0.94	(4)		2.29	(4)		22
Fiscal year ended 3-31-2010			11.06		6.07			57			0.98			2.87			––			––			33
Fiscal year ended 3-31-2009			10.77		5.95			37			0.86			2.89			1.01			2.74			20
Fiscal year ended 3-31-2008			10.48		7.25			2			1.09			3.79			1.17			3.71			86
Fiscal year ended 3-31-2007			10.15		5.06			1			1.17			3.44			––			––			41
Fiscal year ended 3-31-2006			10.00		1.72			2			1.19			3.10			––			––			28

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MANAGED EUROPEAN/PACIFIC FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	7.80	$	(0.02	)(2)	$	0.48	(2)	$	0.46		$	––		$	––		$	––
Fiscal year ended 3-31-2010			4.90		(0.03	)(2)		2.94	(2)		2.91			––	*		––			(0.01	)
Fiscal year ended 3-31-2009			9.81		0.19			(4.46	)		(4.27	)		(0.31	)		(0.33	)		––
Fiscal year ended 3-31-2008(5)			10.00		0.47	(2)		(0.15	)(2)		0.32			(0.51	)		––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			7.71		(0.06	)(2)		0.48	(2)		0.42			––			––			––
Fiscal year ended 3-31-2010			4.86		(0.08	)(2)		2.93	(2)		2.85			––			––			––
Fiscal year ended 3-31-2009			9.78		0.12			(4.46	)		(4.34	)		(0.25	)		(0.33	)		––
Fiscal year ended 3-31-2008(5)			10.00		0.44	(2)		(0.21	)(2)		0.23			(0.45	)		––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			7.73		(0.05	)(2)		0.48	(2)		0.43			––			––			––
Fiscal year ended 3-31-2010			4.87		(0.07	)(2)		2.93	(2)		2.86			––	*		––			––	*
Fiscal year ended 3-31-2009			9.79		0.13			(4.46	)		(4.33	)		(0.26	)		(0.33	)		––
Fiscal year ended 3-31-2008(5)			10.00		0.45	(2)		(0.21	)(2)		0.24			(0.45	)		––			––
Class E Shares(6)
Six-month period ended       9-30-2010 (unaudited)			7.81		(0.02	)(2)		0.49	(2)		0.47			––			––			––
Fiscal year ended 3-31-2010			4.91		(0.01	)(2)		2.93	(2)		2.92			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2009			9.81		0.20			(4.45	)		(4.25	)		(0.32	)		(0.33	)		––
Fiscal year ended 3-31-2008(5)			10.00		0.49	(2)		(0.16	)(2)		0.33			(0.52	)		––			––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			7.84		(0.01	)(2)		0.49	(2)		0.48			––			––			––
Fiscal year ended 3-31-2010			4.92		(0.01	)(2)		2.95	(2)		2.94			––	*		––			(0.02	)
Fiscal year ended 3-31-2009			9.82		0.21			(4.45	)		(4.24	)		(0.33	)		(0.33	)		––
Fiscal year ended 3-31-2008(5)			10.00		0.52	(2)		(0.16	)(2)		0.36			(0.54	)		––			––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			7.81		(0.02	)(2)		0.49	(2)		0.47			––			––			––
Fiscal year ended 3-31-2010			4.91		(0.01	)(2)		2.92	(2)		2.91			––	*		––			(0.01	)
Fiscal year ended 3-31-2009			9.81		0.19			(4.45	)		(4.26	)		(0.31	)		(0.33	)		––
Fiscal year ended 3-31-2008(5)			10.00		0.49	(2)		(0.16	)(2)		0.33			(0.52	)		––			––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)Class is closed to investment.

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	––		$	8.26		5.90	%(3)	$80				0.63	%(4)	- -0.63		%(4)		––	%		––	%		4	%
Fiscal year ended 3-31-2010			(0.01	)		7.80		59.43	(3)		75			0.66		- -0.21				––			––			13
Fiscal year ended 3-31-2009			(0.64	)		4.90	-43.93		(3)		39			0.72			2.51			––			––			25
Fiscal year ended 3-31-2008(5)			(0.51	)		9.81		2.67	(3)		54			0.88	(4)		6.52	(4)		0.89	(4)		6.51	(4)		––	*
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.13		5.45			2			1.52	(4)	- -1.52		(4)		––			––			4
Fiscal year ended 3-31-2010			––			7.71		58.64			2			1.60		- -1.14				––			––			13
Fiscal year ended 3-31-2009			(0.58	)		4.86	-44.75				1			1.70			1.53			––			––			25
Fiscal year ended 3-31-2008(5)			(0.45	)		9.78		1.87			1			1.77	(4)		5.43	(4)		1.78	(4)		5.42	(4)		––	*
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.16		5.56			2			1.43	(4)	- -1.43		(4)		––			––			4
Fiscal year ended 3-31-2010			––	*		7.73		58.76			2			1.43		- -0.97				––			––			13
Fiscal year ended 3-31-2009			(0.59	)		4.87	-44.59				1			1.52			1.53			––			––			25
Fiscal year ended 3-31-2008(5)			(0.45	)		9.79		1.90			3			1.65	(4)		6.18	(4)		1.66	(4)		6.17	(4)		––	*
Class E Shares(6)
Six-month period ended       9-30-2010 (unaudited)			––			8.28		6.02	(3)		––	*		0.49	(4)	- -0.49		(4)		––			––			4
Fiscal year ended 3-31-2010			(0.02	)		7.81		59.40	(3)		––	*		0.49		- -0.06				––			––			13
Fiscal year ended 3-31-2009			(0.65	)		4.91	-43.74		(3)		––	*		0.53			2.49			––			––			25
Fiscal year ended 3-31-2008(5)			(0.52	)		9.81		2.79	(3)		––	*		0.79	(4)		4.44	(4)		0.80	(4)		4.43	(4)		––	*
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.32		6.12			––	*		0.24	(4)	- -0.24		(4)		––			––			4
Fiscal year ended 3-31-2010			(0.02	)		7.84		59.76			––	*		0.23			0.20			––			––			13
Fiscal year ended 3-31-2009			(0.66	)		4.92	-43.56				––	*		0.27			2.73			––			––			25
Fiscal year ended 3-31-2008(5)			(0.54	)		9.82		3.07			––	*		0.55	(4)		4.67	(4)		0.56	(4)		4.66	(4)		––	*
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.28		6.02			––	*		0.61	(4)	- -0.61		(4)		––			––			4
Fiscal year ended 3-31-2010			(0.01	)		7.81		59.32			––	*		0.55			0.05			––			––			13
Fiscal year ended 3-31-2009			(0.64	)		4.91	-43.84				––	*		0.73			2.45			––			––			25
Fiscal year ended 3-31-2008(5)			(0.52	)		9.81		2.77			––	*		0.81	(4)		4.76	(4)		0.82	(4)		4.75	(4)		––	*

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	8.44	$	(0.02	)(2)	$	0.38	(2)	$	0.36		$	––		$	––		$	––
Fiscal year ended 3-31-2010			5.62		0.01	(2)		2.85	(2)		2.86			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009			10.06		0.21			(4.21	)		(4.00	)		(0.27	)		(0.15	)		(0.02	)
Fiscal year ended 3-31-2008(5)			10.00		0.35	(2)		0.04	(2)		0.39			(0.33	)		––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			8.38		(0.06	)(2)		0.38	(2)		0.32			––			––			––
Fiscal year ended 3-31-2010			5.59		(0.04	)(2)		2.83	(2)		2.79			––			––			––
Fiscal year ended 3-31-2009			10.04		0.16	(2)		(4.23	)(2)		(4.07	)		(0.21	)		(0.15	)		(0.02	)
Fiscal year ended 3-31-2008(5)			10.00		0.33	(2)		(0.02	)(2)		0.31			(0.27	)		––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			8.40		(0.05	)(2)		0.37	(2)		0.32			––			––			––
Fiscal year ended 3-31-2010			5.59		(0.03	)(2)		2.84	(2)		2.81			––			––			––
Fiscal year ended 3-31-2009			10.04		0.15	(2)		(4.22	)(2)		(4.07	)		(0.21	)		(0.15	)		(0.02	)
Fiscal year ended 3-31-2008(5)			10.00		0.30	(2)		0.02	(2)		0.32			(0.28	)		––			––
Class E Shares(6)
Six-month period ended       9-30-2010 (unaudited)			8.45		(0.02	)(2)		0.37	(2)		0.35			––			––			––
Fiscal year ended 3-31-2010			5.62		0.01	(2)		2.86	(2)		2.87			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009			10.06		0.23			(4.23	)		(4.00	)		(0.28	)		(0.14	)		(0.02	)
Fiscal year ended 3-31-2008(5)			10.00		0.38	(2)		0.02	(2)		0.40			(0.34	)		––			––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			8.46		(0.01	)(2)		0.37	(2)		0.36			––			––			––
Fiscal year ended 3-31-2010			5.63		0.02	(2)		2.87	(2)		2.89			(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2009			10.07		0.24			(4.21	)		(3.97	)		(0.30	)		(0.15	)		(0.02	)
Fiscal year ended 3-31-2008(5)			10.00		0.41	(2)		0.02	(2)		0.43			(0.36	)		––			––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			8.43		(0.02	)(2)		0.37	(2)		0.35			––			––			––
Fiscal year ended 3-31-2010			5.61		0.01	(2)		2.85	(2)		2.86			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009			10.06		0.22			(4.22	)		(4.00	)		(0.28	)		(0.15	)		(0.02	)
Fiscal year ended 3-31-2008(5)			10.00		0.37	(2)		0.03	(2)		0.40			(0.34	)		––			––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)Class is closed to investment.

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	––		$	8.80		4.27	%(3)	$	161			0.52	%(4)	- -0.52		%(4)		––	%		––	%		22	%
Fiscal year ended 3-31-2010			(0.04	)		8.44		50.82	(3)		152			0.55			0.30			––			––			9
Fiscal year ended 3-31-2009			(0.44	)		5.62	-40.20		(3)		84			0.57			2.85			––			––			16
Fiscal year ended 3-31-2008(5)			(0.33	)		10.06		3.75	(3)		100			0.67	(4)		4.67	(4)		0.68	(4)		4.66	(4)		––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.70		3.82			3			1.37	(4)	- -1.37		(4)		––			––			22
Fiscal year ended 3-31-2010			––			8.38		49.91			4			1.43		- -0.58				––			––			9
Fiscal year ended 3-31-2009			(0.38	)		5.59	-40.93				3			1.41			1.92			––			––			16
Fiscal year ended 3-31-2008(5)			(0.27	)		10.04		2.98			4			1.48	(4)		4.05	(4)		1.49	(4)		4.04	(4)		––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.72		3.81			5			1.27	(4)	- -1.27		(4)		––			––			22
Fiscal year ended 3-31-2010			––			8.40		50.27			5			1.32		- -0.46				––			––			9
Fiscal year ended 3-31-2009			(0.38	)		5.59	-40.91				3			1.35			2.19			––			––			16
Fiscal year ended 3-31-2008(5)			(0.28	)		10.04		3.05			4			1.44	(4)		3.70	(4)		1.45	(4)		3.69	(4)		––
Class E Shares(6)
Six-month period ended       9-30-2010 (unaudited)			––			8.80		4.14	(3)		––	*		0.42	(4)	- -0.42		(4)		––			––			22
Fiscal year ended 3-31-2010			(0.04	)		8.45		51.16	(3)		––	*		0.42			0.41			––			––			9
Fiscal year ended 3-31-2009			(0.44	)		5.62	-40.12		(3)		––	*		0.45			2.83			––			––			16
Fiscal year ended 3-31-2008(5)			(0.34	)		10.06		3.82	(3)		––	*		0.60	(4)		3.57	(4)		0.61	(4)		3.56	(4)		––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.82		4.26			––	*		0.17	(4)	- -0.17		(4)		––			––			22
Fiscal year ended 3-31-2010			(0.06	)		8.46		51.31			––	*		0.16			0.66			––			––			9
Fiscal year ended 3-31-2009			(0.47	)		5.63	- -39.86				––	*		0.18			3.08			––			––			16
Fiscal year ended 3-31-2008(5)			(0.36	)		10.07		4.10			––	*		0.36	(4)		3.81	(4)		0.37	(4)		3.80	(4)		––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			––			8.78		4.15			––	*		0.52	(4)	- -0.52		(4)		0.55	(4)	- -0.55		(4)		22
Fiscal year ended 3-31-2010			(0.04	)		8.43		50.91			––	*		0.55			0.28			0.58			0.25			9
Fiscal year ended 3-31-2009			(0.45	)		5.61	-40.21				––	*		0.59			2.56			0.60			2.55			16
Fiscal year ended 3-31-2008(5)			(0.34	)		10.06		3.81			––	*		0.64	(4)		3.83	(4)		0.65	(4)		3.82	(4)		––

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MICRO CAP GROWTH FUND
	Net Asset Value, Beginning of Period			Net Investment Loss			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	15.78	$	(0.14	)(2)	$	0.58	(2)	$	0.44		$	––	$	––		$	––
Fiscal year ended 3-31-2010			9.77		(0.29	)(2)		6.69	(2)		6.40			––		(0.39	)		(0.39	)
Fiscal year ended 3-31-2009(5)			10.00		(0.02	)		(0.21	)		(0.23	)		––		––			––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			15.63		(0.26	)(2)		0.57	(2)		0.31			––		––			––
Fiscal year ended 3-31-2010			9.76		(0.51	)(2)		6.66	(2)		6.15			––		(0.28	)		(0.28	)
Fiscal year ended 3-31-2009(5)			10.00		(0.04	)		(0.20	)		(0.24	)		––		––			––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			15.69		(0.21	)(2)		0.57	(2)		0.36			––		––			––
Fiscal year ended 3-31-2010			9.76		(0.44	)(2)		6.68	(2)		6.24			––		(0.31	)		(0.31	)
Fiscal year ended 3-31-2009(5)			10.00		(0.03	)		(0.21	)		(0.24	)		––		––			––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			15.79		(0.11	)(2)		0.58	(2)		0.47			––		––			––
Fiscal year ended 3-31-2010			9.77		(0.24	)(2)		6.68	(2)		6.44			––		(0.42	)		(0.42	)
Fiscal year ended 3-31-2009(5)			10.00		(0.02	)		(0.21	)		(0.23	)		––		––			––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			15.70		(0.13	)(2)		0.58	(2)		0.45			––		––			––
Fiscal year ended 3-31-2010			9.77		(0.31	)(2)		6.63	(2)		6.32			––		(0.39	)		(0.39	)
Fiscal year ended 3-31-2009(5)			10.00		(0.02	)		(0.21	)		(0.23	)		––		––			––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from February 17, 2009 (commencement of operations of the class) through March 31, 2009.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Loss to Average Net Assets Including Expense Waiver		Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	16.22		2.79	%(3)	$46				1.95	%(4)	- -1.86	%(4)		2.07	%(4)	- -1.98		%(4)		37	%
Fiscal year ended 3-31-2010			15.78		66.16	(3)		28			2.17		- -2.08			2.79		- -2.70				94
Fiscal year ended 3-31-2009(5)			9.77	- -2.30		(3)		3			2.55	(4)	- -2.38	(4)		––			––			5
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			15.94		1.98			1			3.57	(4)	- -3.48	(4)		––			––			37
Fiscal year ended 3-31-2010			15.63		63.49			––	*		3.91		- -3.82			4.13		-4.04				94
Fiscal year ended 3-31-2009(5)			9.76	- -2.40				––	*		3.49	(4)	- -3.32	(4)		––			––			5
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			16.05		2.30			2			2.83	(4)	- -2.74	(4)		––			––			37
Fiscal year ended 3-31-2010			15.69		64.45			1			3.29		- -3.19			3.51		- -3.41				94
Fiscal year ended 3-31-2009(5)			9.76	- -2.40				––	*		3.24	(4)	- -3.07	(4)		––			––			5
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			16.26		2.98			1			1.57	(4)	- -1.48	(4)		––			––			37
Fiscal year ended 3-31-2010			15.79		66.68			––	*		1.89		- -1.79			2.23		- -2.13				94
Fiscal year ended 3-31-2009(5)			9.77	- -2.30				––	*		1.97	(4)	- -1.80	(4)		––			––			5
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			16.15		2.87			––	*		1.83	(4)	- -1.71	(4)		––			––			37
Fiscal year ended 3-31-2010			15.70		65.38			––	*		2.35		- -2.27			2.57		- -2.49				94
Fiscal year ended 3-31-2009(5)			9.77	- -2.30				––	*		2.21	(4)	- -2.03	(4)		––			––			5

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MID CAP GROWTH FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2010 (unaudited)		$	13.95	$	(0.03	)(2)	$	0.95	(2)	$	0.92		$	––	$	––	$	––
Fiscal year ended 3-31-2010			8.57		(0.06	)(2)		5.44	(2)		5.38			––		––		––
Fiscal year ended 3-31-2009			12.77		(0.05	)		(4.15	)		(4.20	)		––		––		––
Fiscal year ended 3-31-2008			13.07		(0.09	)		(0.21	)		(0.30	)		––		––		––
Fiscal year ended 3-31-2007			12.59		(0.06	)		0.54			0.48			––		––		––
Fiscal year ended 3-31-2006			9.99		(0.04	)		2.64			2.60			––		––		––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			12.58		(0.09	)(2)		0.85	(2)		0.76			––		––		––
Fiscal year ended 3-31-2010			7.81		(0.16	)(2)		4.93	(2)		4.77			––		––		––
Fiscal year ended 3-31-2009			11.79		(0.17	)(2)		(3.81	)(2)		(3.98	)		––		––		––
Fiscal year ended 3-31-2008			12.18		(0.30	)		(0.09	)		(0.39	)		––		––		––
Fiscal year ended 3-31-2007			11.85		(0.23	)		0.56			0.33			––		––		––
Fiscal year ended 3-31-2006			9.50		(0.18	)		2.53			2.35			––		––		––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			13.04		(0.07	)(2)		0.88	(2)		0.81			––		––		––
Fiscal year ended 3-31-2010			8.06		(0.14	)(2)		5.12	(2)		4.98			––		––		––
Fiscal year ended 3-31-2009			12.09		(0.19	)		(3.84	)		(4.03	)		––		––		––
Fiscal year ended 3-31-2008			12.48		(0.25	)		(0.14	)		(0.39	)		––		––		––
Fiscal year ended 3-31-2007			12.10		(0.19	)		0.57			0.38			––		––		––
Fiscal year ended 3-31-2006			9.67		(0.12	)		2.55			2.43			––		––		––
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			13.81		(0.03	)(2)		0.94	(2)		0.91			––		––		––
Fiscal year ended 3-31-2010			8.48		(0.05	)(2)		5.38	(2)		5.33			––		––		––
Fiscal year ended 3-31-2009			12.68		(0.06	)		(4.14	)		(4.20	)		––		––		––
Fiscal year ended 3-31-2008(5)			13.13		(0.22	)(2)		(0.23	)(2)		(0.45	)		––		––		––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			14.42		0.00	(2)		0.99	(2)		0.99			––		––		––
Fiscal year ended 3-31-2010			8.81		0.00	(2)		5.61	(2)		5.61			––		––		––
Fiscal year ended 3-31-2009			13.07		0.00			(4.26	)		(4.26	)		––		––		––
Fiscal year ended 3-31-2008(5)			13.28		(0.03	)(2)		(0.18	)(2)		(0.21	)		––		––		––
Class R Shares
Six-month period ended       9-30-2010 (unaudited)			13.90		(0.04	)(2)		0.95	(2)		0.91			––		––		––
Fiscal year ended 3-31-2010			8.54		(0.07	)(2)		5.43	(2)		5.36			––		––		––
Fiscal year ended 3-31-2009			12.73		(0.06	)		(4.13	)		(4.19	)		––		––		––
Fiscal year ended 3-31-2008			13.05		(0.10	)		(0.22	)		(0.32	)		––		––		––
Fiscal year ended 3-31-2007			12.58		(0.07	)		0.54			0.47			––		––		––
Fiscal year ended 3-31-2006(7)			11.77		0.02			0.79			0.81			––		––		––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			14.29		(0.01	)(2)		0.98	(2)		0.97			––		––		––
Fiscal year ended 3-31-2010			8.74		(0.01	)(2)		5.56	(2)		5.55			––		––		––
Fiscal year ended 3-31-2009			12.97		(0.01	)		(4.22	)		(4.23	)		––		––		––
Fiscal year ended 3-31-2008			13.23		(0.07	)		(0.19	)		(0.26	)		––		––		––
Fiscal year ended 3-31-2007			12.70		(0.03	)		0.56			0.53			––		––		––
Fiscal year ended 3-31-2006			10.04		0.05	(2)		2.61	(2)		2.66			––		––		––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	14.87		6.60	%(3)	$	209			1.57	%(4)	- -0.48		%(4)		––	%		––	%		19	%
Fiscal year ended 3-31-2010			13.95		62.78	(3)		162			1.65		- -0.51				1.67		- -0.53				40
Fiscal year ended 3-31-2009			8.57	- -32.89		(3)		75			1.65		- -0.39				1.78		- -0.52				49
Fiscal year ended 3-31-2008			12.77	- -2.37		(3)		108			1.60		- -0.67				––			––			42
Fiscal year ended 3-31-2007			13.07		3.89	(3)		104			1.59		- -0.48				––			––			25
Fiscal year ended 3-31-2006			12.59		26.03	(3)		105			1.62		- -0.30				––			––			28
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			13.34		6.04			7			2.57	(4)	- -1.47		(4)		––			––			19
Fiscal year ended 3-31-2010			12.58		61.08			7			2.68		- -1.53				––			––			40
Fiscal year ended 3-31-2009			7.81	- -33.76				4			2.92		- -1.69				––			––			49
Fiscal year ended 3-31-2008			11.79	- -3.20				9			2.56		- -1.62				––			––			42
Fiscal year ended 3-31-2007			12.18		2.79			11			2.62		- -1.52				––			––			25
Fiscal year ended 3-31-2006			11.85		24.74			12			2.70		- -1.43				––			––			28
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			13.85		6.21			28			2.23	(4)	- -1.13		(4)		––			––			19
Fiscal year ended 3-31-2010			13.04		61.79			17			2.35		- -1.21				2.38		- -1.24				40
Fiscal year ended 3-31-2009			8.06	- -33.33				6			2.35		- -1.10				2.59		- -1.34				49
Fiscal year ended 3-31-2008			12.09	- -3.13				10			2.35		- -1.41				2.38		- -1.44				42
Fiscal year ended 3-31-2007			12.48		3.14			12			2.35		- -1.25				2.42		- -1.32				25
Fiscal year ended 3-31-2006			12.10		25.13			14			2.35		- -1.09				2.40		- -1.14				28
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			14.72		6.59	(3)		2			1.60	(4)	- -0.50		(4)		2.22	(4)	- -1.12		(4)		19
Fiscal year ended 3-31-2010			13.81		62.85	(3)		1			1.60		- -0.46				2.60		- -1.46				40
Fiscal year ended 3-31-2009			8.48	- -33.12		(3)		––	*		1.99		- -0.71				3.12		- -1.84				49
Fiscal year ended 3-31-2008(5)			12.68	- -3.43		(3)		––	*		2.52	(4)	- -1.61		(4)		––			––			42	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			15.41		6.87			15			1.12	(4)	- -0.02		(4)		––			––			19
Fiscal year ended 3-31-2010			14.42		63.68			6			1.14		- -0.03				––			––			40
Fiscal year ended 3-31-2009			8.81	- -32.59				––	*		1.17			0.09			––			––			49
Fiscal year ended 3-31-2008(5)			13.07	- -1.58				1			1.17	(4)	- -0.23		(4)		––			––			42	(6)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)			14.81		6.55			9			1.65	(4)	- -0.55		(4)		––			––			19
Fiscal year ended 3-31-2010			13.90		62.76			4			1.67		- -0.57				––			––			40
Fiscal year ended 3-31-2009			8.54	- -32.91				––	*		1.72		- -0.45				––			––			49
Fiscal year ended 3-31-2008			12.73	- -2.45				––	*		1.68		- -0.75				––			––			42
Fiscal year ended 3-31-2007			13.05		3.74			––	*		1.71		- -0.59				––			––			25
Fiscal year ended 3-31-2006(7)			12.58		6.68			––	*		1.75	(4)		0.73	(4)		––			––			28	(8)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			15.26		6.79			94			1.25	(4)	- -0.16		(4)		1.37	(4)	- -0.28		(4)		19
Fiscal year ended 3-31-2010			14.29		63.50			54			1.25		- -0.11				1.38		- -0.24				40
Fiscal year ended 3-31-2009			8.74	- -32.61				9			1.25			0.00			1.40		- -0.15				49
Fiscal year ended 3-31-2008			12.97	- -1.97				12			1.25		- -0.33				1.40		- -0.48				42
Fiscal year ended 3-31-2007			13.23		4.17			10			1.25		- -0.15				1.42		- -0.32				25
Fiscal year ended 3-31-2006			12.70		26.50			9			1.25			0.43			1.43			0.25			28

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

(7)For the period from December 29, 2005 (commencement of operations of the class) through March 31, 2006.

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

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MONEY MARKET FUND
	Net Asset Value, Beginning of Period			Net Investment Income			Net Realized and Unrealized Gain on Investments			Total from Investment Operations		Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	1.00	$	0.00	(2)	$	0.00	(2)	$	0.00	$	––	*	$	––		$	––	*
Fiscal year ended 3-31-2010			1.00		0.01	(2)		0.00	(2)		0.01		(0.01	)		––	*		(0.01	)
Fiscal year ended 3-31-2009			1.00		0.02	(2)		0.00	(2)		0.02		(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2008			1.00		0.04	(2)		0.00	(2)		0.04		(0.04	)		––			(0.04	)
Fiscal year ended 3-31-2007			1.00		0.04			0.00			0.04		(0.04	)		––			(0.04	)
Fiscal year ended 3-31-2006			1.00		0.03			0.00			0.03		(0.03	)		––			(0.03	)
Class B Shares(4)
Six-month period ended       9-30-2010 (unaudited)			1.00		0.00	(2)		0.00	(2)		0.00		––	*		––			––	*
Fiscal year ended 3-31-2010			1.00		0.00	(2)		0.00	(2)		0.00		––	*		––	*		––	*
Fiscal year ended 3-31-2009			1.00		0.01	(2)		0.00	(2)		0.01		(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2008			1.00		0.03	(2)		0.00	(2)		0.03		(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2007			1.00		0.03			0.00			0.03		(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2006			1.00		0.02			0.00			0.02		(0.02	)		––			(0.02	)
Class C Shares(4)
Six-month period ended       9-30-2010 (unaudited)			1.00		0.00	(2)		0.00	(2)		0.00		––	*		––			––	*
Fiscal year ended 3-31-2010			1.00		0.00	(2)		0.00	(2)		0.00		––	*		––	*		––	*
Fiscal year ended 3-31-2009			1.00		0.01	(2)		0.00	(2)		0.01		(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2008			1.00		0.03	(2)		0.00	(2)		0.03		(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2007			1.00		0.03			0.00			0.03		(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2006			1.00		0.02			0.00			0.02		(0.02	)		––			(0.02	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			1.00		0.00	(2)		0.00	(2)		0.00		––	*		––			––	*
Fiscal year ended 3-31-2010			1.00		0.00	(2)		0.00	(2)		0.00		––	*		––	*		––	*
Fiscal year ended 3-31-2009			1.00		0.01	(2)		0.00	(2)		0.01		(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2008(5)			1.00		0.04	(2)		0.00	(2)		0.04		(0.04	)		––			(0.04	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(2)Based on average weekly shares outstanding.

(3)Annualized.

(4)These shares are not available for direct investment.  However, they are available by exchange from Class B or Class C shares of another Ivy Fund.

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	1.00		0.01	%	$	184		0.48	%(3)		0.02	%(3)		0.67	%(3)		- -0.17	%(3)
Fiscal year ended 3-31-2010			1.00		0.53			195		0.65			0.50			0.65			0.50
Fiscal year ended 3-31-2009			1.00		1.65			219		0.73			1.51			––			––
Fiscal year ended 3-31-2008			1.00		4.19			91		0.88			4.02			––			––
Fiscal year ended 3-31-2007			1.00		4.44			59		0.88			4.38			0.98			4.28
Fiscal year ended 3-31-2006			1.00		2.87			44		0.91			2.87			1.06			2.72
Class B Shares(4)
Six-month period ended       9-30-2010 (unaudited)			1.00		0.01			9		0.48	(3)		0.02	(3)		1.75	(3)		- -1.25	(3)
Fiscal year ended 3-31-2010			1.00		0.16			9		1.07			0.16			1.75			- -0.52
Fiscal year ended 3-31-2009			1.00		0.74			19		1.61			0.58			1.70			0.49
Fiscal year ended 3-31-2008			1.00		3.25			7		1.80			3.01			––			––
Fiscal year ended 3-31-2007			1.00		3.44			4		1.86			3.43			––			––
Fiscal year ended 3-31-2006			1.00		1.82			2		1.95			1.86			––			––
Class C Shares(4)
Six-month period ended       9-30-2010 (unaudited)			1.00		0.01			44		0.48	(3)		0.02	(3)		1.68	(3)		- -1.18	(3)
Fiscal year ended 3-31-2010			1.00		0.16			39		1.08			0.16			1.67			- -0.43
Fiscal year ended 3-31-2009			1.00		0.78			91		1.58			0.58			1.63			0.53
Fiscal year ended 3-31-2008			1.00		3.31			18		1.73			3.03			––			––
Fiscal year ended 3-31-2007			1.00		3.45			6		1.84			3.45			––			––
Fiscal year ended 3-31-2006			1.00		1.83			3		1.94			1.75			––			––
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			1.00		0.01			4		0.48	(3)		0.02	(3)		0.79	(3)		- -0.29	(3)
Fiscal year ended 3-31-2010			1.00		0.49			4		0.69			0.49			0.70			0.48
Fiscal year ended 3-31-2009			1.00		1.51			5		0.88			1.31			––			––
Fiscal year ended 3-31-2008(5)			1.00		4.07			1		0.93	(3)		3.77	(3)		––			––

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MORTGAGE SECURITIES FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	8.28	$	0.02	(2)	$	0.31	(2)	$	0.33		$	(0.16	)	$	––	$	(0.16	)
Fiscal year ended 3-31-2010			7.73		0.29	(2)		0.64	(2)		0.93			(0.38	)		––		(0.38	)
Fiscal year ended 3-31-2009			9.62		0.35			(1.77	)		(1.42	)		(0.47	)		––		(0.47	)
Fiscal year ended 3-31-2008			10.59		0.49			(0.97	)		(0.48	)		(0.49	)		––		(0.49	)
Fiscal year ended 3-31-2007			10.44		0.51			0.15			0.66			(0.51	)		––		(0.51	)
Fiscal year ended 3-31-2006			10.68		0.48			(0.24	)		0.24			(0.48	)		––		(0.48	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			8.28		(0.03	)(2)		0.31	(2)		0.28			(0.11	)		––		(0.11	)
Fiscal year ended 3-31-2010			7.73		0.22	(2)		0.63	(2)		0.85			(0.30	)		––		(0.30	)
Fiscal year ended 3-31-2009			9.62		0.26			(1.77	)		(1.51	)		(0.38	)		––		(0.38	)
Fiscal year ended 3-31-2008			10.59		0.39			(0.97	)		(0.58	)		(0.39	)		––		(0.39	)
Fiscal year ended 3-31-2007			10.44		0.40			0.15			0.55			(0.40	)		––		(0.40	)
Fiscal year ended 3-31-2006			10.68		0.36			(0.24	)		0.12			(0.36	)		––		(0.36	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			8.28		(0.01	)(2)		0.31	(2)		0.30			(0.13	)		––		(0.13	)
Fiscal year ended 3-31-2010			7.73		0.25	(2)		0.63	(2)		0.88			(0.33	)		––		(0.33	)
Fiscal year ended 3-31-2009			9.62		0.29			(1.77	)		(1.48	)		(0.41	)		––		(0.41	)
Fiscal year ended 3-31-2008			10.59		0.41			(0.97	)		(0.56	)		(0.41	)		––		(0.41	)
Fiscal year ended 3-31-2007			10.44		0.42			0.15			0.57			(0.42	)		––		(0.42	)
Fiscal year ended 3-31-2006			10.68		0.38			(0.24	)		0.14			(0.38	)		––		(0.38	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			8.28		0.03	(2)		0.31	(2)		0.34			(0.17	)		––		(0.17	)
Fiscal year ended 3-31-2010			7.73		0.32	(2)		0.64	(2)		0.96			(0.41	)		––		(0.41	)
Fiscal year ended 3-31-2009			9.62		0.34			(1.77	)		(1.43	)		(0.46	)		––		(0.46	)
Fiscal year ended 3-31-2008(5)			10.59		0.44			(0.97	)		(0.53	)		(0.44	)		––		(0.44	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			8.28		0.04	(2)		0.31	(2)		0.35			(0.18	)		––		(0.18	)
Fiscal year ended 3-31-2010			7.73		0.34	(2)		0.64	(2)		0.98			(0.43	)		––		(0.43	)
Fiscal year ended 3-31-2009			9.62		0.40			(1.77	)		(1.37	)		(0.52	)		––		(0.52	)
Fiscal year ended 3-31-2008(5)			10.59		0.57			(0.97	)		(0.40	)		(0.57	)		––		(0.57	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			8.28		0.03	(2)		0.31	(2)		0.34			(0.17	)		––		(0.17	)
Fiscal year ended 3-31-2010			7.73		0.36	(2)		0.60	(2)		0.96			(0.41	)		––		(0.41	)
Fiscal year ended 3-31-2009			9.62		0.38			(1.77	)		(1.39	)		(0.50	)		––		(0.50	)
Fiscal year ended 3-31-2008			10.59		0.51			(0.97	)		(0.46	)		(0.51	)		––		(0.51	)
Fiscal year ended 3-31-2007			10.44		0.52			0.15			0.67			(0.52	)		––		(0.52	)
Fiscal year ended 3-31-2006			10.68		0.48			(0.24	)		0.24			(0.48	)		––		(0.48	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	8.45		3.96	%(3)	$	101			1.37	%(4)		0.30	%(4)		––	%		––	%		165	%
Fiscal year ended 3-31-2010			8.28		12.37	(3)		130			1.41			3.73			––			––			268
Fiscal year ended 3-31-2009			7.73	- -15.15		(3)		132			1.29			4.32			––			––			149
Fiscal year ended 3-31-2008			9.62	-4.69		(3)		256			1.14			4.80			––			––			98
Fiscal year ended 3-31-2007			10.59		6.52	(3)		278			1.14			4.90			––			––			121
Fiscal year ended 3-31-2006			10.44		2.24	(3)		243			1.05			4.51			1.16			4.40			154
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			8.45		3.42			3			2.40	(4)	- -0.72		(4)		––			––			165
Fiscal year ended 3-31-2010			8.28		11.14			4			2.55			2.75			––			––			268
Fiscal year ended 3-31-2009			7.73	- -16.06				5			2.33			3.39			––			––			149
Fiscal year ended 3-31-2008			9.62	- -5.62				11			2.11			3.82			––			––			98
Fiscal year ended 3-31-2007			10.59		5.45			12			2.16			3.88			––			––			121
Fiscal year ended 3-31-2006			10.44		1.12			11			2.16			3.41			––			––			154
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			8.45		3.59			7			2.05	(4)	- -0.37		(4)		––			––			165
Fiscal year ended 3-31-2010			8.28		11.58			6			2.15			3.18			––			––			268
Fiscal year ended 3-31-2009			7.73	- -15.77				8			2.02			3.64			––			––			149
Fiscal year ended 3-31-2008			9.62	- -5.43				17			1.92			4.02			––			––			98
Fiscal year ended 3-31-2007			10.59		5.69			19			1.93			4.11			––			––			121
Fiscal year ended 3-31-2006			10.44		1.34			19			1.93			3.63			––			––			154
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			8.45		4.07	(3)		––	*		1.14	(4)	0.55		(4)		1.97	(4)	- -0.28		(4)		165
Fiscal year ended 3-31-2010			8.28		12.68	(3)		––	*		1.14			3.95			2.07			3.02			268
Fiscal year ended 3-31-2009			7.73	- -15.21		(3)		––	*		1.38			3.87			1.94			3.31			149
Fiscal year ended 3-31-2008(5)			9.62	- -5.20		(3)		––	*		1.73	(4)		4.20	(4)		––			––			98	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			8.45		4.22			1			0.85	(4)	0.83		(4)		––			––			165
Fiscal year ended 3-31-2010			8.28		13.00			1			0.87			4.11			––			––			268
Fiscal year ended 3-31-2009			7.73	- -14.70				––	*		0.79			4.52			––			––			149
Fiscal year ended 3-31-2008(5)			9.62	-4.05				––	*		0.78	(4)		5.15	(4)		––			––			98	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			8.45		4.08			1			1.12	(4)	0.56		(4)		––			––			165
Fiscal year ended 3-31-2010			8.28		12.76			1			1.10			4.72			––			––			268
Fiscal year ended 3-31-2009			7.73	- -14.91				3			1.02			4.73			––			––			149
Fiscal year ended 3-31-2008			9.62	-4.57				9			1.01			4.93			––			––			98
Fiscal year ended 3-31-2007			10.59		6.66			13			1.00			5.04			––			––			121
Fiscal year ended 3-31-2006			10.44		2.26			7			1.03			4.53			––			––			154

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MUNICIPAL BOND FUND
	Net Asset Value, Beginning of Period			Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	11.16	$	0.22	(2)	$	0.48	(2)	$	0.70		$	(0.22	)	$	––	$	(0.22	)
Fiscal year ended 3-31-2010			10.41		0.45	(2)		0.75	(2)		1.20			(0.45	)		––		(0.45	)
Fiscal year ended 3-31-2009			10.80		0.39	(2)		(0.39	)(2)		0.00			(0.39	)		––		(0.39	)
Fiscal year ended 3-31-2008			11.12		0.39	(2)		(0.32	)(2)		0.07			(0.39	)		––		(0.39	)
Fiscal year ended 3-31-2007			11.04		0.41	(2)		0.08	(2)		0.49			(0.41	)		––		(0.41	)
Fiscal year ended 3-31-2006			11.13		0.42			(0.09	)		0.33			(0.42	)		––		(0.42	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			11.16		0.17	(2)		0.48	(2)		0.65			(0.17	)		––		(0.17	)
Fiscal year ended 3-31-2010			10.41		0.36	(2)		0.75	(2)		1.11			(0.36	)		––		(0.36	)
Fiscal year ended 3-31-2009			10.80		0.31	(2)		(0.39	)(2)		(0.08	)		(0.31	)		––		(0.31	)
Fiscal year ended 3-31-2008			11.12		0.31			(0.32	)		(0.01	)		(0.31	)		––		(0.31	)
Fiscal year ended 3-31-2007			11.04		0.32			0.08			0.40			(0.32	)		––		(0.32	)
Fiscal year ended 3-31-2006			11.13		0.34			(0.09	)		0.25			(0.34	)		––		(0.34	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			11.16		0.17	(2)		0.48	(2)		0.65			(0.17	)		––		(0.17	)
Fiscal year ended 3-31-2010			10.41		0.37	(2)		0.75	(2)		1.12			(0.37	)		––		(0.37	)
Fiscal year ended 3-31-2009			10.80		0.31	(2)		(0.39	)(2)		(0.08	)		(0.31	)		––		(0.31	)
Fiscal year ended 3-31-2008			11.12		0.31			(0.32	)		(0.01	)		(0.31	)		––		(0.31	)
Fiscal year ended 3-31-2007			11.04		0.32			0.08			0.40			(0.32	)		––		(0.32	)
Fiscal year ended 3-31-2006			11.13		0.34			(0.09	)		0.25			(0.34	)		––		(0.34	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			11.16		0.23	(2)		0.48	(2)		0.71			(0.23	)		––		(0.23	)
Fiscal year ended 3-31-2010(5)			11.10		0.19	(2)		0.06	(2)		0.25			(0.19	)		––		(0.19	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			11.16		0.22	(2)		0.48	(2)		0.70			(0.22	)		––		(0.22	)
Fiscal year ended 3-31-2010(7)			11.30		0.22	(2)		(0.14	)(2)		0.08			(0.22	)		––		(0.22	)
Fiscal period ended 9-24-2008(8)			10.80		0.14	(2)		(0.36	)(2)		(0.22	)		(0.14	)		––		(0.14	)
Fiscal year ended 3-31-2008			11.12		0.38	(2)		(0.32	)(2)		0.06			(0.38	)		––		(0.38	)
Fiscal year ended 3-31-2007			11.04		0.39	(2)		0.08	(2)		0.47			(0.39	)		––		(0.39	)
Fiscal year ended 3-31-2006			11.13		0.42			(0.09	)		0.33			(0.42	)		––		(0.42	)
Fiscal year ended 3-31-2005			11.31		0.37			(0.18	)		0.19			(0.37	)		––		(0.37	)
Fiscal year ended 3-31-2004			11.10		0.35			0.21			0.56			(0.35	)		––		(0.35	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from November 4, 2009 (commencement of operations of the class) through March 31, 2010.

(6)For the fiscal year ended March 31, 2010.

(7)For the period from October 8, 2009 (recommencement of operations) through March 31, 2010.

(8)For the period from April 1, 2008 through September 24, 2008 when all outstanding Class Y shares were redeemed at the ending net asset value shown.

(9)For the fiscal year ended March 31, 2009.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	11.64		6.26	%(3)	$64				1.12	%(4)		3.70	%(4)		––	%		––	%		3	%
Fiscal year ended 3-31-2010			11.16		11.66	(3)		46			1.15			4.09			––			––			18
Fiscal year ended 3-31-2009			10.41		0.09	(3)		33			1.24			3.76			––			––			26
Fiscal year ended 3-31-2008			10.80		0.69	(3)		20			1.26			3.62			1.31			3.57			62
Fiscal year ended 3-31-2007			11.12		4.51	(3)		9			1.11			3.67			1.35			3.43			26
Fiscal year ended 3-31-2006			11.04		3.00	(3)		6			0.90			3.77			1.33			3.34			20
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			11.64		5.85			2			1.90	(4)		2.92	(4)		––			––			3
Fiscal year ended 3-31-2010			11.16		10.75			2			1.92			3.33			––			––			18
Fiscal year ended 3-31-2009			10.41		- -0.71			2			2.02			2.98			––			––			26
Fiscal year ended 3-31-2008			10.80		- -0.13			1			2.08			2.81			2.13			2.76			62
Fiscal year ended 3-31-2007			11.12		3.70			1			1.85			2.92			2.09			2.68			26
Fiscal year ended 3-31-2006			11.04		2.20			1			1.70			2.96			2.13			2.53			20
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			11.64		5.86			27			1.87	(4)		2.96	(4)		––			––			3
Fiscal year ended 3-31-2010			11.16		10.84			23			1.90			3.34			––			––			18
Fiscal year ended 3-31-2009			10.41		- -0.69			22			2.00			3.00			––			––			26
Fiscal year ended 3-31-2008			10.80		- -0.14			12			2.08			2.80			2.13			2.75			62
Fiscal year ended 3-31-2007			11.12		3.69			15			1.87			2.90			2.11			2.66			26
Fiscal year ended 3-31-2006			11.04		2.19			16			1.69			2.97			2.12			2.54			20
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			11.64		6.37			1			0.91	(4)		3.93	(4)		––			––			3
Fiscal year ended 3-31-2010(5)			11.16		2.27			––	*		0.91	(4)		4.32	(4)		––			––			18	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			11.64		6.26			1			1.12	(4)		3.72	(4)		1.16	(4)		3.68	(4)		3
Fiscal year ended 3-31-2010(7)			11.16		0.68			––	*		1.15	(4)		4.10	(4)		1.17	(4)		4.08	(4)		18	(6)
Fiscal period ended 9-24-2008(8)			10.44		- -2.08			––			1.51	(4)		3.42	(4)		––			––			26	(9)
Fiscal year ended 3-31-2008			10.80		0.58			––	*		1.38			3.50			1.43			3.45			62
Fiscal year ended 3-31-2007			11.12		4.36			––	*		1.23			3.55			1.47			3.31			26
Fiscal year ended 3-31-2006			11.04		2.98			––	*		0.92			3.74			1.35			3.31			20
Fiscal year ended 3-31-2005			11.13		1.75			––	*		1.22			3.13			1.48			2.87			17
Fiscal year ended 3-31-2004			11.31		5.13			––	*		1.44			3.14			––			––			11

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MUNICIPAL HIGH INCOME FUND
	Net Asset Value, Beginning of Period			Net Investment Income			Ne Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$4.84		$	0.11	(2)	$	0.24	(2)	$	0.35		$	(0.11	)	$	––		$	(0.11	)
Fiscal year ended 3-31-2010(5)			4.21		0.22	(2)		0.63	(2)		0.85			(0.21	)		(0.01	)		(0.22	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			4.84		0.09	(2)		0.24	(2)		0.33			(0.09	)		––			(0.09	)
Fiscal year ended 3-31-2010(5)			4.21		0.17	(2)		0.64	(2)		0.81			(0.17	)		(0.01	)		(0.18	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			4.84		0.09	(2)		0.24	(2)		0.33			(0.09	)		––			(0.09	)
Fiscal year ended 3-31-2010(5)			4.21		0.18	(2)		0.63	(2)		0.81			(0.17	)		(0.01	)		(0.18	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			4.84		0.12	(2)		0.24	(2)		0.36			(0.12	)		––			(0.12	)
Fiscal year ended 3-31-2010(6)			4.21		0.23	(2)		0.63	(2)		0.86			(0.22	)		(0.01	)		(0.23	)
Fiscal period ended 5-17-2009(7)			4.48		0.16	(2)		(0.27	)(2)		(0.11	)		(0.16	)		––			(0.16	)
Fiscal year ended 9-30-2008(7)			5.00		0.24			(0.51	)		(0.27	)		(0.25	)		––			(0.25	)
Fiscal year ended 9-30-2007(7)			5.10		0.25			(0.10	)		0.15			(0.25	)		––			(0.25	)
Fiscal year ended 9-30-2006(7)			4.98		0.25			0.12			0.37			(0.25	)		––			(0.25	)
Fiscal year ended 9-30-2005(7)			4.88		0.27			0.10			0.37			(0.27	)		––			(0.27	)
Fiscal year ended 9-30-2004(7)			4.83		0.27			0.05			0.32			(0.27	)		––			(0.27	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			4.84		0.11	(2)		0.24	(2)		0.35			(0.11	)		––			(0.11	)
Fiscal year ended 3-31-2010(5)			4.21		0.15	(2)		0.64	(2)		0.79			(0.15	)		(0.01	)		(0.16	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from May 18, 2009 (commencement of operations of the class) through March 31, 2010.

(6)The Ivy Municipal High Income Fund commenced operations on May 18, 2009 after the reorganization of the Class Y shares of Waddell & Reed Advisors Municipal High Income Fund into Class I shares of the Fund.  The information shown is for a share outstanding during the fiscal period from May 18, 2009 through March 31, 2010 for Ivy Municipal High Income Fund.

(7) The information shown is for a share outstanding during the fiscal year or period ended for Class Y of the Waddell & Reed Advisors Municipal High Income Fund prior to the reorganization.

(8)The return shown for Class Y is hypothetical because there were no shares or assets for the period from July 28, 2009 through October 7, 2009.  Class A data has been substituted for Class Y data during that period.

	Net Asset Value, End of Period			Total Return			Ne Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	5.08		7.26	%(3)	$	117			0.95	%(4)		4.22	%(4)		1.04	%(4)		4.13	%(4)		1	%
Fiscal year ended 3-31-2010(5)			4.84		20.45	(3)		25			0.95	(4)		5.41	(4)		1.68	(4)		4.68	(4)		14
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			5.08		6.81			3			1.73	(4)		3.51	(4)		1.78	(4)		3.45	(4)		1
Fiscal year ended 3-31-2010(5)			4.84		19.59			2			1.72	(4)		4.52	(4)		2.38	(4)		3.86	(4)		14
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			5.08		6.79			53			1.72	(4)		3.44	(4)		1.77	(4)		3.39	(4)		1
Fiscal year ended 3-31-2010(5)			4.84		19.55			8			1.76	(4)		4.54	(4)		2.42	(4)		3.88	(4)		14
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			5.08		7.41			83			0.70	(4)		4.54	(4)		0.86	(4)		4.28	(4)		1
Fiscal year ended 3-31-2010(6)			4.84		20.68			8			0.70	(4)		5.77	(4)		1.53	(4)		4.94	(4)		14
Fiscal period ended 5-17-2009(7)			4.21		-4.72			––	*		0.87	(4)		6.35	(4)		0.91	(4)		6.31	(4)		28
Fiscal year ended 9-30-2008(7)			4.48		- -5.67			––	*		0.70			5.03			0.74			4.99			26
Fiscal year ended 9-30-2007(7)			5.00		2.92			––	*		0.75			4.90			0.79			4.86			33
Fiscal year ended 9-30-2006(7)			5.10		7.61			––	*		0.75			4.96			––			––			29
Fiscal year ended 9-30-2005(7)			4.98		7.67			––	*		0.76			5.38			––			––			24
Fiscal year ended 9-30-2004(7)			4.88		6.87			––	*		0.75			5.78			––			––			28
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			5.08		7.23			2			0.95	(4)		4.33	(4)		1.00	(4)		4.29	(4)		1
Fiscal year ended 3-31-2010(5)			4.84		19.02	(8)		1			1.10	(4)		5.10	(4)		1.76	(4)		4.44	(4)		14

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY PACIFIC OPPORTUNITIES FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	14.84	$	0.11	(1)	$	0.91	(1)	$	1.02		$	––		$	––
Fiscal year ended 3-31-2010			8.86		(0.08	)(1)		6.06	(1)		5.98			––			––
Fiscal year ended 3-31-2009			17.61		0.05			(6.96	)		(6.91	)		––			(1.84	)
Fiscal year ended 3-31-2008			16.91		(0.01	)		2.80			2.79			(0.05	)		(2.04	)
Fiscal year ended 3-31-2007			14.32		(0.02	)		3.23			3.21			(0.01	)		(0.61	)
Fiscal year ended 3-31-2006			10.61		0.02	(1)		3.83	(1)		3.85			(0.04	)		(0.10	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			12.97		0.03	(1)		0.78	(1)		0.81			––			––
Fiscal year ended 3-31-2010			7.83		(0.19	)(1)		5.33	(1)		5.14			––			––
Fiscal year ended 3-31-2009			16.01		(0.09	)		(6.30	)		(6.39	)		––			(1.79	)
Fiscal year ended 3-31-2008			15.49		(0.19	)		2.56			2.37			––			(1.85	)
Fiscal year ended 3-31-2007			13.29		(0.07	)		2.88			2.81			––			(0.61	)
Fiscal year ended 3-31-2006			9.91		(0.06	)(1)		3.54	(1)		3.48			––			(0.10	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			13.33		0.05	(1)		0.81	(1)		0.86			––			––
Fiscal year ended 3-31-2010			8.01		(0.17	)(1)		5.49	(1)		5.32			––			––
Fiscal year ended 3-31-2009			16.27		(0.09	)		(6.37	)		(6.46	)		––			(1.80	)
Fiscal year ended 3-31-2008			15.73		(0.14	)		2.58			2.44			––			(1.90	)
Fiscal year ended 3-31-2007			13.45		(0.08	)		2.97			2.89			––			(0.61	)
Fiscal year ended 3-31-2006			10.01		(0.06	)(1)		3.60	(1)		3.54			––			(0.10	)
Class E Shares(4)
Six-month period ended       9-30-2010 (unaudited)			14.98		0.14	(1)		0.91	(1)		1.05			––			––
Fiscal year ended 3-31-2010			8.90		(0.01	)(1)		6.09	(1)		6.08			––			––
Fiscal year ended 3-31-2009			17.62		0.07			(6.93	)		(6.86	)		––			(1.86	)
Fiscal year ended 3-31-2008(5)			16.88		0.06			2.82			2.88			(0.10	)		(2.04	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			15.16		0.14	(1)		0.94	(1)		1.08			––			––
Fiscal year ended 3-31-2010			9.00		(0.01	)(1)		6.17	(1)		6.16			––			––
Fiscal year ended 3-31-2009			17.77		0.10	(1)		(7.00	)(1)		(6.90	)		––			(1.87	)
Fiscal year ended 3-31-2008(5)			17.00		(0.03	)(1)		2.98	(1)		2.95			(0.14	)		(2.04	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			15.08		0.13	(1)		0.93	(1)		1.06			––			––
Fiscal year ended 3-31-2010			8.98		(0.05	)(1)		6.15	(1)		6.10			––			––
Fiscal year ended 3-31-2009			17.75		0.08			(6.99	)		(6.91	)		––			(1.86	)
Fiscal year ended 3-31-2008			17.03		0.01			2.83			2.84			(0.08	)		(2.04	)
Fiscal year ended 3-31-2007			14.41		0.02			3.26			3.28			(0.05	)		(0.61	)
Fiscal year ended 3-31-2006			10.67		0.04	(1)		3.87	(1)		3.91			(0.07	)		(0.10	)

*Not shown due to rounding.

(1)Based on average weekly shares outstanding.

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

(3)Annualized.

(4)Class is closed to investment.

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	––		$	15.86		6.87	%(2)	$	546			1.75	%(3)		1.49	%(3)		51	%
Fiscal year ended 3-31-2010			––			14.84		67.50	(2)		514			1.83		- -0.61				81
Fiscal year ended 3-31-2009			(1.84	)		8.86	- -38.76		(2)		239			1.92			0.37			112
Fiscal year ended 3-31-2008			(2.09	)		17.61		14.30	(2)		471			1.74		- -0.08				96
Fiscal year ended 3-31-2007			(0.62	)		16.91		22.60	(2)		375			1.84		- -0.14				74
Fiscal year ended 3-31-2006			(0.14	)		14.32		36.51	(2)		191			1.95			0.24			87
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			––			13.78		6.25			16			2.85	(3)		0.42	(3)		51
Fiscal year ended 3-31-2010			––			12.97		65.65			17			2.91		- -1.64				81
Fiscal year ended 3-31-2009			(1.79	)		7.83	- -39.46				10			3.07		- -0.77				112
Fiscal year ended 3-31-2008			(1.85	)		16.01		13.16			21			2.74		- -1.05				96
Fiscal year ended 3-31-2007			(0.61	)		15.49		21.33			20			2.88		- -1.15				74
Fiscal year ended 3-31-2006			(0.10	)		13.29		35.26			11			2.91		- -0.51				87
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			––			14.19		6.45			33			2.48	(3)		0.79	(3)		51
Fiscal year ended 3-31-2010			––			13.33		66.42			35			2.56		- -1.38				81
Fiscal year ended 3-31-2009			(1.80	)		8.01	- -39.22				16			2.69		- -0.36				112
Fiscal year ended 3-31-2008			(1.90	)		16.27		13.36			38			2.49		- -0.82				96
Fiscal year ended 3-31-2007			(0.61	)		15.73		21.68			34			2.60		- -0.87				74
Fiscal year ended 3-31-2006			(0.10	)		13.45		35.51			18			2.75		- -0.50				87
Class E Shares(4)
Six-month period ended       9-30-2010 (unaudited)			––			16.03		7.01	(2)		––	*		1.36	(3)		1.87	(3)		51
Fiscal year ended 3-31-2010			––			14.98		68.32	(2)		––	*		1.42		- -0.11				81
Fiscal year ended 3-31-2009			(1.86	)		8.90	- -38.43		(2)		––	*		1.44			0.79			112
Fiscal year ended 3-31-2008(5)			(2.14	)		17.62		14.79	(2)		––	*		1.43	(3)		0.26	(3)		96	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			––			16.24		7.12			144			1.25	(3)		1.89	(3)		51
Fiscal year ended 3-31-2010			––			15.16		68.44			104			1.29		- -0.11				81
Fiscal year ended 3-31-2009			(1.87	)		9.00	- -38.34				45			1.31			0.81			112
Fiscal year ended 3-31-2008(5)			(2.18	)		17.77		15.10			38			1.31	(3)		0.06	(3)		96	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			––			16.14		7.03			9			1.51	(3)		1.78	(3)		51
Fiscal year ended 3-31-2010			––			15.08		67.93			9			1.55		- -0.38				81
Fiscal year ended 3-31-2009			(1.86	)		8.98	- -38.47				4			1.57			0.69			112
Fiscal year ended 3-31-2008			(2.12	)		17.75		14.48			7			1.55			0.06			96
Fiscal year ended 3-31-2007			(0.66	)		17.03		22.95			8			1.58			0.11			74
Fiscal year ended 3-31-2006			(0.17	)		14.41		36.90			4			1.68			0.46			87

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SMALL CAP GROWTH FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	11.40	$	(0.07	)(2)	$	0.96	(2)	$	0.89		$	––	$	––		$	––
Fiscal year ended 3-31-2010			7.08		(0.12	)(2)		4.44	(2)		4.32			––		––			––
Fiscal year ended 3-31-2009			10.31		(0.12	)		(3.04	)		(3.16	)		––		(0.07	)		(0.07	)
Fiscal year ended 3-31-2008			12.98		(0.13	)(2)		(0.71	)(2)		(0.84	)		––		(1.83	)		(1.83	)
Fiscal year ended 3-31-2007			14.87		(0.12	)(2)		0.18	(2)		0.06			––		(1.95	)		(1.95	)
Fiscal year ended 3-31-2006			12.32		(0.21	)		3.22			3.01			––		(0.46	)		(0.46	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			10.15		(0.11	)(2)		0.84	(2)		0.73			––		––			––
Fiscal year ended 3-31-2010			6.37		(0.20	)(2)		3.98	(2)		3.78			––		––			––
Fiscal year ended 3-31-2009			9.39		(0.37	)		(2.58	)		(2.95	)		––		(0.07	)		(0.07	)
Fiscal year ended 3-31-2008			11.97		(0.23	)		(0.64	)		(0.87	)		––		(1.71	)		(1.71	)
Fiscal year ended 3-31-2007			13.99		(0.24	)		0.17			(0.07	)		––		(1.95	)		(1.95	)
Fiscal year ended 3-31-2006			11.73		(0.23	)		2.95			2.72			––		(0.46	)		(0.46	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			10.49		(0.10	)(2)		0.88	(2)		0.78			––		––			––
Fiscal year ended 3-31-2010			6.56		(0.16	)(2)		4.09	(2)		3.93			––		––			––
Fiscal year ended 3-31-2009			9.62		(0.28	)		(2.71	)		(2.99	)		––		(0.07	)		(0.07	)
Fiscal year ended 3-31-2008			12.22		(0.23	)		(0.62	)		(0.85	)		––		(1.75	)		(1.75	)
Fiscal year ended 3-31-2007			14.20		(0.23	)		0.20			(0.03	)		––		(1.95	)		(1.95	)
Fiscal year ended 3-31-2006			11.87		(0.25	)		3.04			2.79			––		(0.46	)		(0.46	)
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			11.38		(0.07	)(2)		0.96	(2)		0.89			––		––			––
Fiscal year ended 3-31-2010			7.06		(0.11	)(2)		4.43	(2)		4.32			––		––			––
Fiscal year ended 3-31-2009			10.29		(0.13	)(2)		(3.03	)(2)		(3.16	)		––		(0.07	)		(0.07	)
Fiscal year ended 3-31-2008(5)			13.03		(0.18	)(2)		(0.77	)(2)		(0.95	)		––		(1.79	)		(1.79	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			13.14		(0.04	)(2)		1.11	(2)		1.07			––		––			––
Fiscal year ended 3-31-2010			8.12		(0.07	)(2)		5.09	(2)		5.02			––		––			––
Fiscal year ended 3-31-2009			11.73		(0.07	)(2)		(3.47	)(2)		(3.54	)		––		(0.07	)		(0.07	)
Fiscal year ended 3-31-2008(5)			14.35		0.09			(0.82	)		(0.73	)		––		(1.89	)		(1.89	)
Class R Shares
Six-month period ended       9-30-2010 (unaudited)			11.40		(0.07	)(2)		0.96	(2)		0.89			––		––			––
Fiscal year ended 3-31-2010			7.08		(0.12	)(2)		4.44	(2)		4.32			––		––			––
Fiscal year ended 3-31-2009			10.30		(0.15	)		(3.00	)		(3.15	)		––		(0.07	)		(0.07	)
Fiscal year ended 3-31-2008			12.96		(0.19	)		(0.65	)		(0.84	)		––		(1.82	)		(1.82	)
Fiscal year ended 3-31-2007			14.87		(0.15	)		0.19			0.04			––		(1.95	)		(1.95	)
Fiscal year ended 3-31-2006(7)			13.78		(0.04	)		1.13			1.09			––		––			––
Class Y Shares
Six-month period ended 9-30-2010 (unaudited)			12.85		(0.06	)(2)		1.08	(2)		1.02			––		––			––
Fiscal year ended 3-31-2010			7.96		(0.10	)(2)		4.99	(2)		4.89			––		––			––
Fiscal year ended 3-31-2009			11.53		(0.10	)(2)		(3.40	)(2)		(3.50	)		––		(0.07	)		(0.07	)
Fiscal year ended 3-31-2008			14.31		(0.11	)		(0.81	)		(0.92	)		––		(1.86	)		(1.86	)
Fiscal year ended 3-31-2007			16.15		(0.11	)		0.22			0.11			––		(1.95	)		(1.95	)
Fiscal year ended 3-31-2006			13.33		(0.16	)		3.44			3.28			––		(0.46	)		(0.46	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Loss to Average Net Assets Including Expense Waiver		Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	12.29		7.81	%(3)	$	166			1.55	%(4)	- -1.14	%(4)		––	%		––	%		24	%
Fiscal year ended 3-31-2010			11.40		61.02	(3)		132			1.66		- -1.24			––			––			72
Fiscal year ended 3-31-2009			7.08	- -30.58		(3)		66			1.71		- -1.38			––			––			85
Fiscal year ended 3-31-2008			10.31	- -8.32		(3)		97			1.56		- -1.00			––			––			79
Fiscal year ended 3-31-2007			12.98		0.76	(3)		109			1.49		- -0.86			––			––			96
Fiscal year ended 3-31-2006			14.87		24.70	(3)		141			1.50		- -0.90			––			––			87
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			10.88		7.19			8			2.59	(4)	- -2.18	(4)		––			––			24
Fiscal year ended 3-31-2010			10.15		59.34			8			2.77		- -2.34			––			––			72
Fiscal year ended 3-31-2009			6.37	- -31.35				6			2.75		- -2.43			––			––			85
Fiscal year ended 3-31-2008			9.39	- -9.19				12			2.45		- -1.87			––			––			79
Fiscal year ended 3-31-2007			11.97	- -0.15				16			2.45		- -1.82			––			––			96
Fiscal year ended 3-31-2006			13.99		23.46			19			2.45		- -1.86			––			––			87
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			11.27		7.44			161			2.21	(4)	- -1.80	(4)		––			––			24
Fiscal year ended 3-31-2010			10.49		59.91			154			2.29		- -1.86			––			––			72
Fiscal year ended 3-31-2009			6.56	- -31.01				103			2.34		- -2.01			––			––			85
Fiscal year ended 3-31-2008			9.62	- -8.91				187			2.20		- -1.62			––			––			79
Fiscal year ended 3-31-2007			12.22		0.14			259			2.20		- -1.57			––			––			96
Fiscal year ended 3-31-2006			14.20		23.78			328			2.20		- -1.62			––			––			87
Class E Shares
Six-month period ended       9-30-2010 (unaudited)			12.27		7.82	(3)		2			1.56	(4)	- -1.15	(4)		2.29	(4)	- -1.88		(4)		24
Fiscal year ended 3-31-2010			11.38		61.19	(3)		1			1.56		- -1.14			2.69		- -2.27				72
Fiscal year ended 3-31-2009			7.06	- -30.64		(3)		1			1.90		- -1.57			2.82		- -2.49				85
Fiscal year ended 3-31-2008(5)			10.29	- -9.15		(3)		1			2.26	(4)	- -1.79	(4)		––			––			79	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			14.21		8.14			38			1.08	(4)	- -0.68	(4)		––			––			24
Fiscal year ended 3-31-2010			13.14		61.82			8			1.10		- -0.68			––			––			72
Fiscal year ended 3-31-2009			8.12	- -30.12				4			1.09		- -0.76			––			––			85
Fiscal year ended 3-31-2008(5)			11.73	- -6.82				2			1.10	(4)	- -0.52	(4)		––			––			79	(6)
Class R Shares
Six-month period ended 9-30-2010 (unaudited)			12.29		7.81			7			1.63	(4)	- -1.22	(4)		––			––			24
Fiscal year ended 3-31-2010			11.40		61.02			4			1.64		- -1.24			––			––			72
Fiscal year ended 3-31-2009			7.08	- -30.52				––	*		1.63		- -1.30			––			––			85
Fiscal year ended 3-31-2008			10.30	- -8.35				––	*		1.64		- -1.10			––			––			79
Fiscal year ended 3-31-2007			12.96		0.62			––	*		1.63		- -1.01			––			––			96
Fiscal year ended 3-31-2006(7)			14.87		7.91			––	*		1.67	(4)	- -0.99	(4)		––			––			87	(8)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			13.87		7.94			132			1.33	(4)	- -0.93	(4)		––			––			24
Fiscal year ended 3-31-2010			12.85		61.43			124			1.35		- -0.92			––			––			72
Fiscal year ended 3-31-2009			7.96	- -30.30				70			1.34		- -1.01			––			––			85
Fiscal year ended 3-31-2008			11.53	- -8.13				124			1.33		- -0.76			––			––			79
Fiscal year ended 3-31-2007			14.31		1.02			154			1.32		- -0.70			––			––			96
Fiscal year ended 3-31-2006			16.15		24.86			173			1.33		- -0.74			––			––			87

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

(7)For the period from December 29, 2005 (commencement of operations of the class) through March 31, 2006.

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

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SMALL CAP VALUE FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	14.99	$	(0.02	)(1)	$	(0.22	)(1)	$	(0.24	)	$	––	$	––
Fiscal year ended 3-31-2010			9.87		(0.07	)(1)		5.19	(1)		5.12			––		––
Fiscal year ended 3-31-2009			12.96		(0.06	)		(3.03	)		(3.09	)		––		––
Fiscal year ended 3-31-2008			16.22		(0.10	)		(2.28	)		(2.38	)		––		(0.88	)
Fiscal year ended 3-31-2007			16.24		(0.03	)		1.35			1.32			––		(1.34	)
Fiscal year ended 3-31-2006			16.88		(0.11	)		2.62			2.51			––		(3.15	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			13.95		(0.11	)(1)		(0.20	)(1)		(0.31	)		––		––
Fiscal year ended 3-31-2010			9.29		(0.21	)(1)		4.87	(1)		4.66			––		––
Fiscal year ended 3-31-2009			12.34		(0.23	)		(2.82	)		(3.05	)		––		––
Fiscal year ended 3-31-2008			15.48		(0.35	)		(2.08	)		(2.43	)		––		(0.71	)
Fiscal year ended 3-31-2007			15.72		(0.14	)		1.24			1.10			––		(1.34	)
Fiscal year ended 3-31-2006			16.59		(0.25	)		2.53			2.28			––		(3.15	)
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			14.25		(0.08	)(1)		(0.21	)(1)		(0.29	)		––		––
Fiscal year ended 3-31-2010			9.45		(0.16	)(1)		4.96	(1)		4.80			––		––
Fiscal year ended 3-31-2009			12.51		(0.11	)		(2.95	)		(3.06	)		––		––
Fiscal year ended 3-31-2008			15.69		(0.28	)		(2.14	)		(2.42	)		––		(0.76	)
Fiscal year ended 3-31-2007			15.87		(0.12	)		1.28			1.16			––		(1.34	)
Fiscal year ended 3-31-2006			16.67		(0.21	)		2.56			2.35			––		(3.15	)
Class E Shares(4)
Six-month period ended       9-30-2010 (unaudited)			15.19		0.01	(1)		(0.22	)(1)		(0.21	)		––		––
Fiscal year ended 3-31-2010			9.94		(0.01	)(1)		5.26	(1)		5.25			––		––
Fiscal year ended 3-31-2009			12.98		0.01			(3.05	)		(3.04	)		––		––
Fiscal year ended 3-31-2008(5)			16.23		(0.02	)		(2.30	)		(2.32	)		––		(0.93	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			15.49		0.02	(1)		(0.22	)(1)		(0.20	)		––		––
Fiscal year ended 3-31-2010			10.13		0.00	(1)		5.36	(1)		5.36			––		––
Fiscal year ended 3-31-2009			13.20		0.02	(1)		(3.09	)(1)		(3.07	)		––		––
Fiscal year ended 3-31-2008(5)			16.43		(0.01	)		(2.26	)		(2.27	)		––		(0.96	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			15.33		0.00	(1)		(0.22	)(1)		(0.22	)		––		––
Fiscal year ended 3-31-2010			10.05		(0.02	)(1)		5.30	(1)		5.28			––		––
Fiscal year ended 3-31-2009			13.13		(0.01	)(1)		(3.07	)(1)		(3.08	)		––		––
Fiscal year ended 3-31-2008			16.42		(0.04	)(1)		(2.32	)(1)		(2.36	)		––		(0.93	)
Fiscal year ended 3-31-2007			16.36		0.03			1.37			1.40			––		(1.34	)
Fiscal year ended 3-31-2006			16.92		(0.06	)		2.65			2.59			––		(3.15	)

*Not shown due to rounding.

(1)Based on average weekly shares outstanding.

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

(3)Annualized.

(4)Class is closed to investment.

(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(6)For the fiscal year ended March 31, 2008.

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	––		$	14.75	- -1.60		%(2)	$	197			1.71	%(3)	- -0.32		%(3)		28	%
Fiscal year ended 3-31-2010			––			14.99		51.87	(2)		202			1.77		- -0.55				100
Fiscal year ended 3-31-2009			––			9.87	- -23.84		(2)		106			1.93		- -0.54				101
Fiscal year ended 3-31-2008			(0.88	)		12.96	- -15.19		(2)		104			1.76		- -0.63				118
Fiscal year ended 3-31-2007			(1.34	)		16.22		8.26	(2)		121			1.74		- -0.24				123
Fiscal year ended 3-31-2006			(3.15	)		16.24		16.44	(2)		86			1.80		- -0.76				157
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			––			13.64	- -2.22				5			2.96	(3)	- -1.59		(3)		28
Fiscal year ended 3-31-2010			––			13.95		50.16			7			2.99		- -1.77				100
Fiscal year ended 3-31-2009			––			9.29	- -24.72				4			3.04		- -1.67				101
Fiscal year ended 3-31-2008			(0.71	)		12.34	- -16.14				5			2.83		- -1.69				118
Fiscal year ended 3-31-2007			(1.34	)		15.48		7.11			9			2.82		- -1.33				123
Fiscal year ended 3-31-2006			(3.15	)		15.72		15.28			7			2.84		- -1.80				157
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			––			13.96	- -2.04				14			2.48	(3)	- -1.09		(3)		28
Fiscal year ended 3-31-2010			––			14.25		50.79			14			2.55		- -1.33				100
Fiscal year ended 3-31-2009			––			9.45	- -24.46				6			2.72		- -1.34				101
Fiscal year ended 3-31-2008			(0.76	)		12.51	- -15.91				8			2.54		- -1.40				118
Fiscal year ended 3-31-2007			(1.34	)		15.69		7.43			12			2.52		- -1.04				123
Fiscal year ended 3-31-2006			(3.15	)		15.87		15.64			10			2.54		- -1.50				157
Class E Shares(4)
Six-month period ended       9-30-2010 (unaudited)			––			14.98	- -1.38		(2)		––	*		1.25	(3)		0.14	(3)		28
Fiscal year ended 3-31-2010			––			15.19		52.82	(2)		––	*		1.27		- -0.05				100
Fiscal year ended 3-31-2009			––			9.94	- -23.42		(2)		––	*		1.30			0.07			101
Fiscal year ended 3-31-2008(5)			(0.93	)		12.98	- -14.82		(2)		––	*		1.26	(3)	- -0.14		(3)		118	(6)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			––			15.29	- -1.29				2			1.13	(3)		0.26	(3)		28
Fiscal year ended 3-31-2010			––			15.49		52.91			2			1.18			0.04			100
Fiscal year ended 3-31-2009			––			10.13	- -23.26				1			1.18			0.20			101
Fiscal year ended 3-31-2008(5)			(0.96	)		13.20	- -14.39				––	*		1.19	(3)	- -0.07		(3)		118	(6)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			––			15.11	- -1.43				20			1.40	(3)	- -0.01		(3)		28
Fiscal year ended 3-31-2010			––			15.33		52.54			19			1.40		- -0.17				100
Fiscal year ended 3-31-2009			––			10.05	- -23.46				8			1.42		- -0.06				101
Fiscal year ended 3-31-2008			(0.93	)		13.13	- -14.89				14			1.39		- -0.25				118
Fiscal year ended 3-31-2007			(1.34	)		16.42		8.70			21			1.39			0.08			123
Fiscal year ended 3-31-2006			(3.15	)		16.36		16.88			24			1.41		- -0.37				157

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY TAX-MANAGED EQUITY FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	10.78	$	(0.08	)(2)	$	(0.23	)(2)	$	(0.31	)	$	––		$	––	$	––
Fiscal year ended 3-31-2010(5)			8.62		(0.11	)(2)		2.27	(2)		2.16			––			––		––
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			10.72		(0.11	)(2)		(0.24	)(2)		(0.35	)		––			––		––
Fiscal year ended 3-31-2010(5)			8.62		(0.15	)(2)		2.25	(2)		2.10			––			––		––
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			10.72		(0.11	)(2)		(0.24	)(2)		(0.35	)		––			––		––
Fiscal year ended 3-31-2010(5)			8.62		(0.15	)(2)		2.25	(2)		2.10			––			––		––
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			10.81		(0.05	)(2)		(0.24	)(2)		(0.29	)		––			––		––
Fiscal year ended 3-31-2010(6)			8.62		(0.07	)(2)		2.26	(2)		2.19			––			––		––
Fiscal period ended 5-17-2009(7)			11.51		(0.07	)(2)		(2.82	)(2)		(2.89	)		––			––		––
Fiscal year ended 6-30-2008(7)			11.00		(0.12	)		0.63			0.51			––			––		––
Fiscal year ended 6-30-2007(7)			9.32		(0.02	)		1.70			1.68			––			––		––
Fiscal year ended 6-30-2006(7)			8.76		(0.05	)(2)		0.61	(2)		0.56			––			––		––
Fiscal year ended 6-30-2005(7)			8.28		0.01			0.50			0.51			(0.03	)		––		(0.03	)
Fiscal year ended 6-30-2004(7)			6.95		(0.01	)		1.34			1.33			––			––		––
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			10.78		(0.07	)(2)		(0.24	)(2)		(0.31	)		––			––		––
Fiscal year ended 3-31-2010(5)			8.62		(0.07	)(2)		2.23	(2)		2.16			––			––		––

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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 period from May 18, 2009 (commencement of operations of the class) through March 31, 2010.

(6)The Ivy Tax-Managed Equity Fund commenced operations on May 18, 2009 after the reorganization of the Class Y shares of Waddell & Reed Advisors Tax-Managed Equity Fund into Class I shares of the Fund.  The information shown is for a share outstanding during the fiscal period from May 18, 2009 through March 31, 2010 for Ivy Tax-Managed Equity Fund.

(7)The information shown is for a share outstanding during the fiscal year or period ended for Class Y of the Waddell & Reed Advisors Tax-Managed Equity Fund prior to the reorganization.

(8)The return shown for Class Y is hypothetical because there were no shares or assets for the period from July 28, 2009 through October 7, 2009.  Class A data has been substituted for Class Y data during that period.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	10.47	- -2.88		%(3)	$	5			2.62	%(4)	- -1.56		%(4)		3.47	%(4)	- -2.41		%(4)		22	%
Fiscal year ended 3-31-2010(5)			10.78		25.06	(3)		3			2.57	(4)	- -1.26		(4)		4.33	(4)	- -3.02		(4)		19
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			10.37	- -3.26				––	*		3.14	(4)	- -2.09		(4)		3.99	(4)	- -2.94		(4)		22
Fiscal year ended 3-31-2010(5)			10.72		24.36			––	*		3.12	(4)	- -1.81		(4)		4.88	(4)	- -3.57		(4)		19
Class C Shares
Six-month period ended       9-30-2010 (unaudited)			10.37	- -3.26				1			3.16	(4)	- -2.12		(4)		4.01	(4)	- -2.97		(4)		22
Fiscal year ended 3-31-2010(5)			10.72		24.36			1			3.13	(4)	- -1.82		(4)		4.89	(4)	- -3.58		(4)		19
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			10.52	- -2.68				1			2.11	(4)	- -1.06		(4)		3.12	(4)	- -2.07		(4)		22
Fiscal year ended 3-31-2010(6)			10.81		25.41			1			2.11	(4)	- -0.82		(4)		4.03	(4)	- -2.74		(4)		19
Fiscal period ended 5-17-2009(7)			8.62	- -25.11				––	*		2.42	(4)	- -1.05		(4)		––			––			40
Fiscal year ended 6-30-2008(7)			11.51		4.64			––	*		2.11		- -0.97				––			––			27
Fiscal year ended 6-30-2007(7)			11.00		18.03			––	*		1.24		- -0.23				––			––			55
Fiscal year ended 6-30-2006(7)			9.32		6.39			––	*		1.30		- -0.60				––			––			100
Fiscal year ended 6-30-2005(7)			8.76		6.11			––	*		1.14			0.09			––			––			66
Fiscal year ended 6-30-2004(7)			8.28		19.14			––	*		1.24		- -0.80				––			––			92
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			10.47	- -2.88				––	*		2.52	(4)	- -1.47		(4)		3.37	(4)	- -2.32		(4)		22
Fiscal year ended 3-31-2010(5)			10.78		25.06	(8)		––	*		2.52	(4)	- -1.11		(4)		4.28	(4)	- -2.87		(4)		19

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY VALUE FUND
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital			Total Distributions
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	15.56	$	(0.01	)(2)	$	(0.49	)(2)	$	(0.50	)	$	––		$	––		$	––		$	––
Fiscal year ended 3-31-2010			9.94		0.02	(2)		5.65	(2)		5.67			(0.03	)		––			(0.02	)		(0.05	)
Fiscal year ended 3-31-2009			15.95		0.13			(6.03	)		(5.90	)		(0.11	)		––			––			(0.11	)
Fiscal year ended 3-31-2008			19.04		0.12			(1.85	)		(1.73	)		(0.12	)		(1.24	)		––			(1.36	)
Fiscal year ended 3-31-2007			17.17		0.13			2.28			2.41			(0.13	)		(0.41	)		––			(0.54	)
Fiscal year ended 3-31-2006			16.04		0.10			1.14			1.24			(0.11	)		––			––			(0.11	)
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			15.12		(0.13	)(2)		(0.47	)(2)		(0.60	)		––			––			––			––
Fiscal year ended 3-31-2010			9.78		(0.17	)(2)		5.51	(2)		5.34			––			––			––			––
Fiscal year ended 3-31-2009			15.76		(0.10	)		(5.88	)		(5.98	)		––			––			––			––
Fiscal year ended 3-31-2008			18.83		(0.09	)		(1.80	)		(1.89	)		––			(1.18	)		––			(1.18	)
Fiscal year ended 3-31-2007			17.04		(0.03	)		2.23			2.20			––			(0.41	)		––			(0.41	)
Fiscal year ended 3-31-2006			15.97		(0.04	)		1.12			1.08			(0.01	)		––			––			(0.01	)
Class C Shares
Six-month period ended 9-30-2010 (unaudited)			15.34		(0.07	)(2)		(0.48	)(2)		(0.55	)		––			––			––			––
Fiscal year ended 3-31-2010			9.86		(0.08	)(2)		5.56	(2)		5.48			––			––			––			––
Fiscal year ended 3-31-2009			15.83		0.00	(2)		(5.97	)(2)		(5.97	)		––			––			––			––
Fiscal year ended 3-31-2008			18.90		(0.06	)		(1.81	)		(1.87	)		––			(1.20	)		––			(1.20	)
Fiscal year ended 3-31-2007			17.08		(0.01	)		2.24			2.23			––			(0.41	)		––			(0.41	)
Fiscal year ended 3-31-2006			16.00		(0.04	)		1.13			1.09			(0.01	)		––			––			(0.01	)
Class E Shares(5)
Six-month period ended       9-30-2010 (unaudited)			15.60		0.02	(2)		(0.49	)(2)		(0.47	)		––			––			––			––
Fiscal year ended 3-31-2010			9.95		0.06	(2)		5.70	(2)		5.76			(0.06	)		––			(0.05	)		(0.11	)
Fiscal year ended 3-31-2009			15.97		0.20			(6.04	)		(5.84	)		(0.18	)		––			––			(0.18	)
Fiscal year ended 3-31-2008(6)			19.09		0.18			(1.90	)		(1.72	)		(0.16	)		(1.24	)		––			(1.40	)
Class I Shares
Six-month period ended       9-30-2010 (unaudited)			15.60		0.03	(2)		(0.49	)(2)		(0.46	)		––			––			––			––
Fiscal year ended 3-31-2010			9.95		0.06	(2)		5.71	(2)		5.77			(0.06	)		––			(0.06	)		(0.12	)
Fiscal year ended 3-31-2009			15.97		0.22			(6.04	)		(5.82	)		(0.20	)		––			––			(0.20	)
Fiscal year ended 3-31-2008(6)			19.10		0.20			(1.90	)		(1.70	)		(0.19	)		(1.24	)		––			(1.43	)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			15.58		0.01	(2)		(0.49	)(2)		(0.48	)		––			––			––			––
Fiscal year ended 3-31-2010			9.95		0.04	(2)		5.67	(2)		5.71			(0.04	)		––			(0.04	)		(0.08	)
Fiscal year ended 3-31-2009			15.96		0.26			(6.11	)		(5.85	)		(0.16	)		––			––			(0.16	)
Fiscal year ended 3-31-2008			19.04		0.16	(2)		(1.85	)(2)		(1.69	)		(0.15	)		(1.24	)		––			(1.39	)
Fiscal year ended 3-31-2007			17.18		0.22	(2)		2.22	(2)		2.44			(0.17	)		(0.41	)		––			(0.58	)
Fiscal year ended 3-31-2006			16.05		0.13			1.15			1.28			(0.15	)		––			––			(0.15	)

*Not shown due to rounding.

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(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)Class is closed to investment.

(6)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.

(7)For the fiscal year ended March 31, 2008.

	Net Asset Value, End of Period			Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2010 (unaudited)		$	15.06	- -3.21		%(3)	$	61			1.66	%(4)	- -0.17		%(4)		1.75	%(4)	- -0.26		%(4)		19	%
Fiscal year ended 3-31-2010			15.56		57.09	(3)		56			1.85			0.26			––			––			77
Fiscal year ended 3-31-2009			9.94	- -37.09		(3)		34			1.79			0.98			––			––			57
Fiscal year ended 3-31-2008			15.95	- -9.83		(3)		57			1.52			0.63			––			––			66
Fiscal year ended 3-31-2007			19.04		14.12	(3)		73			1.49			0.76			––			––			61
Fiscal year ended 3-31-2006			17.17		7.75	(3)		58			1.53			0.65			––			––			63
Class B Shares
Six-month period ended       9-30-2010 (unaudited)			14.52	- -3.97				2			3.24	(4)	- -1.76		(4)		––			––			19
Fiscal year ended 3-31-2010			15.12		54.60			3			3.40		- -1.28				––			––			77
Fiscal year ended 3-31-2009			9.78	- -37.94				2			3.08		- -0.35				––			––			57
Fiscal year ended 3-31-2008			15.76	- -10.72				4			2.51		- -0.35				––			––			66
Fiscal year ended 3-31-2007			18.83		12.99			6			2.46		- -0.21				––			––			61
Fiscal year ended 3-31-2006			17.04		6.73			5			2.50		- -0.33				––			––			63
Class C Shares
Six-month period ended 9-30-2010 (unaudited)			14.79	- -3.59				6			2.47	(4)	- -0.98		(4)		––			––			19
Fiscal year ended 3-31-2010			15.34		55.58			5			2.70		- -0.63				––			––			77
Fiscal year ended 3-31-2009			9.86	- -37.71				2			2.79			0.01			––			––			57
Fiscal year ended 3-31-2008			15.83	- -10.56				4			2.41		- -0.25				––			––			66
Fiscal year ended 3-31-2007			18.90		13.09			5			2.38		- -0.12				––			––			61
Fiscal year ended 3-31-2006			17.08		6.80			4			2.41		- -0.23				––			––			63
Class E Shares(5)
Six-month period ended       9-30-2010 (unaudited)			15.13	- -3.01		(3)		––	*		1.27	(4)		0.21	(4)		––			––			19
Fiscal year ended 3-31-2010			15.60		58.05	(3)		––	*		1.29			0.82			––			––			77
Fiscal year ended 3-31-2009			9.95	- -36.75		(3)		––	*		1.25			1.52			––			––			57
Fiscal year ended 3-31-2008(6)			15.97	- -9.76		(3)		––	*		1.18	(4)		0.98	(4)		––			––			66	(7)
Class I Shares
Six-month period ended 9-30-2010 (unaudited)			15.14	- -2.95				1			1.20	(4)		0.40	(4)		––			––			19
Fiscal year ended 3-31-2010			15.60		58.20			––	*		1.15			0.87			––			––			77
Fiscal year ended 3-31-2009			9.95	- -36.67				––	*		1.11			1.66			––			––			57
Fiscal year ended 3-31-2008(6)			15.97	- -9.63				––	*		1.07	(4)		1.09	(4)		––			––			66	(7)
Class Y Shares
Six-month period ended       9-30-2010 (unaudited)			15.10	- -3.08				1			1.44	(4)		0.08	(4)		––			––			19
Fiscal year ended 3-31-2010			15.58		57.52			1			1.54			0.57			––			––			77
Fiscal year ended 3-31-2009			9.95	- -36.80				––	*		1.40			1.41			––			––			57
Fiscal year ended 3-31-2008			15.96	- -9.60				––	*		1.31			0.85			––			––			66
Fiscal year ended 3-31-2007			19.04		14.28			––	*		1.29			0.96			––			––			61
Fiscal year ended 3-31-2006			17.18		7.99			12			1.31			0.89			––			––			63

See Accompanying Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS

Ivy Funds (amounts in thousands)

SEPTEMBER 30, 2010 (UNAUDITED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

On April 1, 2010, each of the 33 series of Ivy Funds, a Delaware statutory trust (Trust), became the successor fund to corresponding series of a Maryland corporation and a Massachusetts business trust pursuant to a Plan of Reorganization and Termination that was approved by shareholders of each fund (each, a Reorganization and collectively, the Reorganizations). The Reorganizations were accomplished through tax-free exchanges of shares, which had no impact on net assets and number of shares outstanding. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Ivy Bond Fund, Ivy Capital Appreciation Fund, Ivy Core Equity Fund, Ivy Cundill Global Value Fund, Ivy Dividend Opportunities Fund, Ivy European Opportunities Fund, Ivy Global Bond Fund, Ivy High Income Fund, Ivy International Balanced Fund, Ivy International Core Equity Fund, Ivy International Growth Fund, Ivy Large Cap Growth Fund, Ivy Limited-Term Bond Fund, Ivy Managed European/Pacific Fund, Ivy Managed International Opportunities Fund, Ivy Micro Cap Growth Fund, Ivy Mid Cap Growth Fund, Ivy Money Market Fund, Ivy Mortgage Securities Fund, Ivy Municipal Bond Fund, Ivy Municipal High Income Fund, Ivy Pacific Opportunities Fund, Ivy Small Cap Growth Fund, Ivy Small Cap Value Fund, Ivy Tax-Managed Equity Fund and Ivy Value Fund (each, a Fund) are series of the Trust and are the only series of the Trust included in these financial statements. The investment objective(s), policies and risk factors of each Fund are described more fully in the Funds' Prospectus and Statement of Additional Information. Each Fund's investment manager is Ivy Investment Management Company (IICO or the Manager).

Each Fund offers Class A, Class B and Class C shares. Certain Funds may also offer Class E, Class I, Class R and/or Class Y shares. Class A and Class E shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B and Class C shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class I, Class R and Class Y shares are sold without either a front-end sales charge or a CDSC. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Net investment income, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer agent and shareholder servicing fees, directly attributable to that class. Class A, B, C, E, R and Y have a distribution and service plan. Class I shares are not included in the plan. Class B shares will automatically convert to Class A shares 96 months after the date of purchase.

The following is a summary of significant accounting policies consistently followed by each Fund.

Securities Valuation. Each Fund's investments are reported at fair value. Each Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the NYSE), normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

Equity securities traded on U.S. or foreign securities exchanges or included in a national market system are valued at the official closing price at the close of each business day unless otherwise stated below. Over-the-counter equity securities and listed securities for which no price is readily available are valued at the average of the last bid and asked prices.

Security prices for fixed-income securities are typically based on quotes that are obtained from an independent pricing service authorized by the Board of Trustees. To determine values of fixed-income securities, the independent pricing service utilizes such factors as current quotations by broker/dealers, coupon, maturity, quality, type of issue, trading characteristics, and other yield and risk factors it deems relevant in determining valuations. Securities that cannot be valued by the independent pricing service may be valued using quotes obtained from dealers that make markets in the securities.

Listed options are valued at the closing price by the independent pricing service unless the price is unavailable, in which case they are valued at either the mean between the last bid and asked price or using a valuation obtained from a dealer in that security. Over-the-counter options are valued at the price provided by a dealer in that security. Swaps are valued by the independent pricing service unless the price is unavailable, in which case they are valued at the price provided by a dealer in that security. Futures contracts traded on an exchange are generally valued at the settlement price. Mutual funds, including investment funds, typically are valued at the net asset value reported as of the valuation date.

Forward foreign currency contracts are valued daily based upon the closing prices of the forward currency rates determined at the close of the NYSE.

Senior loans are valued using a price or composite price from one or more brokers or dealers as obtained from an independent pricing service.

Short-term securities with maturities of 60 days or less and all securities held by Ivy Money Market Fund are valued on the basis of amortized cost (which approximates market value), whereby a portfolio security is valued at its cost initially, and thereafter valued to reflect a constant amortization to maturity of any discount or premium.

Because many foreign markets close before the NYSE, events may occur between the close of the foreign market and the close of the NYSE that could have a material impact on the valuation of foreign securities. IICO, pursuant to procedures adopted by the Board of Trustees, evaluates the impact of these events and may adjust the valuation of foreign securities to reflect the fair value as of the close of the NYSE. In addition, all securities for which market values are not readily available or are deemed unreliable are appraised at fair value as determined in good faith under the supervision of the Board of Trustees.

Security Transactions and Related Investment Income. Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses are calculated on the identified cost basis. Interest income is recorded on the accrual basis and includes paydown gain (loss) and accretion of discounts and amortization of premiums. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Upon notification from issuers, some of the distributions received from a real estate investment trust or publicly traded partnership may be redesignated as a reduction of cost of the related investment and/or realized gain.

Securities on a When-Issued or Delayed Delivery Basis. Certain Funds may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis. "When-issued" or "delayed delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by a Fund on a when-issued basis normally take place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of a Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When a Fund engages in when-issued or delayed delivery tr ansactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield IICO, or the Fund's investment subadvisor, as applicable, consider advantageous. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The Fund may also sell securities that it purchased on a when-issued or delayed-delivery basis prior to settlement of the original purchase.

Senior Loans. A Fund invests in senior secured corporate loans (senior loans) either as an original lender or as a purchaser of a loan assignment or a participation interest in a loan. Senior loans are generally made to U.S. and foreign borrowers that are corporations, partnerships, or other business entities. Senior loans are generally readily marketable, but some loans may be illiquid or may be subject to some restrictions on resale.

Certain senior loans contain provisions that obligate a Fund to fund future commitments at the borrower's discretion. At September 30, 2010, there were no such unfunded commitments.

Mortgage Dollar Roll Transactions. Certain Funds enter into dollar roll transactions on securities issued or to be issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, in which the Fund sells mortgage securities and simultaneously agrees to repurchase similar (same type, coupon and maturity) securities at a later date at an agreed upon price. During the period between the sale and repurchase, the Fund forgoes principal and interest paid on the mortgage securities sold. The Fund is compensated from negotiated fees paid by brokers offered as an inducement to the Fund to "roll over" their purchase commitments. These fees are recognized over the roll period and are included in "Interest and amortization" in the Statement of Operations.

Interest Only Obligations. These securities entitle the owner to receive only the interest portion from a bond, Treasury note or pool of mortgages. These securities are generally created by a third party separating a bond or pool of mortgages into distinct interest-only and principal-only securities. As the principal (par) amount of a bond or pool of mortgages is paid down, the amount of interest income earned by the owner will decline as well.

Credit Risk. Certain Funds may hold high-yield and/or non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of September 30, 2010, Ivy High Income Fund and Ivy Municipal High Income Fund held defaulted securities with an aggregate market value of $615 and $46, respectively, representing less than 0.05% of each Fund's net assets.

Foreign Currency Translation. Each Fund's accounting records are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars daily, using foreign exchange rates obtained from an independent pricing service authorized by the Board of Trustees. 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. Each Fund combines fluctuations from currency exchange rates and fluctuations in market value when computing net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments. Foreign exchange rates are valued as of the close of the NYSE, normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading, primarily us ing an independent pricing service authorized by the Board of Trustees.

Repurchase Agreements. Each Fund may purchase securities subject to repurchase agreements, which are instruments under which the Fund purchases a security and the seller (normally a commercial bank or broker-dealer) agrees, at the time of purchase, that it will repurchase the security at a specified time and price. Repurchase agreements are collateralized by the value of the resold securities which, during the entire period of the agreement, generally remains at least equal to the value of the agreement, including accrued interest thereon. The collateral for the repurchase agreement is held by a custodian bank.

Investments with Off-Balance Sheet Risk. Certain Funds may enter into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Statement of Assets and Liabilities.

Segregation and Collateralization. In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (SEC) require that a Fund either deliver collateral or segregate assets in connection with certain investments (e.g., dollar rolls, financial futures contracts, foreign currency exchange contracts, options written, securities with extended settlement periods and swaps), the Fund will segregate collateral or designate on its books and records cash or other liquid securities having a market value at least equal to the amount that is required to be physically segregated for the benefit of the counterparty. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit cash or securities as collateral for certain investments.

Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.

Income Taxes. It is the policy of each Fund 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, each Fund intends to pay distributions as required to avoid imposition of excise tax. Accordingly, no provision has been made for Federal income taxes. Management of the Trust periodically reviews all tax positions to assess that it is more likely than not that the position would be sustained upon examination by the relevant tax authority based on the technical merits of each position. As of and for the fiscal period ended September 30, 2010, management believes that under this standard no liability for unrecognized tax positions is required. The Funds are subject to examination by U.S. federal and state authorities for returns filed for tax years after 2006.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders are recorded by each Fund on the business day following record date. Net investment income dividends and capital gains distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.

Custodian Fee. "Custodian fees" in the Statement of Operations may include interest expense incurred by a Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. A Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by that Fund, at a rate equal to the custodian's prime rate less 150 basis points. The "Earnings credit" line item, if shown, represents earnings on cash balances maintained by that Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Trustees and Chief Compliance Officer Fees. Fees paid to the Trustees can be paid in cash or deferred to a later date, at the election of the Trustee according to the Deferred Fee Agreement entered into between the Trust and the Trustee(s). Each Fund records its portion of the deferred fees as a liability on the Statement of Assets and Liabilities. All fees paid in cash plus any appreciation (depreciation) in the underlying deferred plan are shown on the Statement of Operations. Additionally, fees paid to the office of the Chief Compliance Officer of the Funds are shown on the Statement of Operations.

Indemnifications. The Trust's organizational documents provide current and former Trustees and Officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Trust. In the normal course of business, the Trust may also enter into contracts that provide general indemnifications. The Trust's maximum exposure under these arrangements is unknown and is dependent on future claims that may be made against the Trust. The risk of material loss from such claims is considered remote.

Concentration of Risk. Certain Funds may have a concentration of risk, which includes, but is not limited to, investing in international securities. International investing involves additional risks including, but not limited to, currency fluctuations, political or economic conditions affecting the foreign country and differences in accounting standards and foreign regulations.

Other. 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. Management has performed a review for subsequent events through the date this report was issued.

2. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS

Management Fees. IICO, a wholly owned subsidiary of Waddell & Reed Financial, Inc. (WDR), serves as each Fund's investment manager. The management fee is accrued daily by each Fund at the following annual rates:

Fund	Net Asset Breakpoints	Annual Rate
Ivy Bond Fund	Up to $500 Million	0.525%
	Over $500 Million up to $1 Billion	0.500%
	Over $1 Billion up to $1.5 Billion	0.450%
	Over $1.5 Billion	0.400%
Ivy Capital Appreciation Fund	Up to $1 Billion	0.650%
	Over $1 Billion up to $2 Billion	0.600%
	Over $2 Billion up to $3 Billion	0.550%
	Over $3 Billion	0.500%
Ivy Core Equity Fund	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion up to $5 Billion	0.550%
	Over $5 Billion up to $6 Billion	0.525%
	Over $6 Billion	0.500%
Ivy Cundill Global Value Fund	Up to $500 Million	1.000%
	Over $500 Million up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%
Ivy Dividend Opportunities Fund	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%
Ivy European Opportunities Fund	Up to $250 Million	1.000%
	Over $250 Million up to $500 Million	0.850%
	Over $500 Million	0.750%
Ivy Global Bond Fund	Up to $500 Million	0.625%
	Over $500 Million up to $1 Billion	0.600%
	Over $1 Billion up to $1.5 Billion	0.550%
	Over $1.5 Billion	0.500%
Ivy High Income Fund	Up to $500 Million	0.625%
	Over $500 Million up to $1 Billion	0.600%
	Over $1 Billion up to $1.5 Billion	0.550%
	Over $1.5 Billion	0.500%
Ivy International Balanced Fund	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%
Ivy International Core Equity Fund	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.700%
Ivy International Growth Fund	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.700%
Ivy Large Cap Growth Fund	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%
Ivy Limited-Term Bond Fund	Up to $500 Million	0.500%
	Over $500 Million up to $1 Billion	0.450%
	Over $1 Billion up to $1.5 Billion	0.400%
	Over $1.5 Billion	0.350%
Ivy Managed European/Pacific Fund	None	0.050%
Ivy Managed International Opportunities Fund	None	0.050%
Ivy Micro Cap Growth Fund	Up to $1 Billion	0.950%
	Over $1 Billion up to $2 Billion	0.930%
	Over $2 Billion up to $3 Billion	0.900%
	Over $3 Billion	0.860%
Ivy Mid Cap Growth Fund	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%
Ivy Money Market Fund	None	0.400%
Ivy Mortgage Securities Fund	Up to $500 Million	0.500%
	Over $500 Million up to $1 Billion	0.450%
	Over $1 Billion up to $1.5 Billion	0.400%
	Over $1.5 Billion	0.350%
Ivy Municipal Bond Fund	Up to $500 Million	0.525%
	Over $500 Million up to $1 Billion	0.500%
	Over $1 Billion up to $1.5 Billion	0.450%
	Over $1.5 Billion	0.400%
Ivy Municipal High Income Fund	Up to $500 Million	0.525%
	Over $500 Million up to $1 Billion	0.500%
	Over $1 Billion up to $1.5 Billion	0.450%
	Over $1.5 Billion	0.400%
Ivy Pacific Opportunities Fund	Up to $500 Million	1.000%
	Over $500 Million up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%
Ivy Small Cap Growth Fund	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%
Ivy Small Cap Value Fund	Up to $1 Billion	0.850%
	Over $1 Billion up to $2 Billion	0.830%
	Over $2 Billion up to $3 Billion	0.800%
	Over $3 Billion	0.760%
Ivy Tax-Managed Equity Fund	Up to $1 Billion	0.650%
	Over $1 Billion up to $2 Billion	0.600%
	Over $2 Billion up to $3 Billion	0.550%
	Over $3 Billion	0.500%
Ivy Value Fund	Up to $1 Billion	0.700%
	Over $1 Billion up to $2 Billion	0.650%
	Over $2 Billion up to $3 Billion	0.600%
	Over $3 Billion	0.550%

Effective August 26, 2009, the management fee for Ivy European Opportunities Fund is:

Up to $250 Million	0.900%
Over $250 Million up to $500 Million	0.850%
Over $500 Million	0.750%

For the period from October 1, 2008 to July 31, 2010, IICO contractually agreed to reduce the management fee paid to 0.35%, on an annual basis, of net assets for any day that Ivy Limited-Term Bond Fund's net assets are below $500 million.

For the period from May 18, 2009 to September 30, 2016, IICO voluntarily agreed to reduce the management fee paid to 0.485%, on an annual basis, of net assets for any day that Ivy Municipal High Income Fund's net assets are below $500 million.

For Funds managed solely by IICO, 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. See Expense Reimbursements and/or Waivers below for amounts waived during the fiscal period ended September 30, 2010.

IICO has entered into Subadvisory Agreements with the following entities on behalf of certain Funds.

Under an agreement between IICO and Mackenzie Financial Corporation (Mackenzie), Mackenzie serves as subadvisor to Ivy Cundill Global Value Fund. Wall Street Associates serves as subadvisor to Ivy Micro Cap Growth Fund. Advantus Capital Management, Inc. serves as subadvisor to Ivy Bond Fund and Ivy Mortgage Securities Fund. Each subadvisor makes investment decisions in accordance with the Fund's investment objectives, policies and restrictions under the supervision of IICO and the Board of Trustees. IICO pays all costs associated with retaining the subadvisors.

Accounting Services Fees. The Trust has an Accounting Services Agreement with Waddell & Reed Services Company, doing business as WI Services Company (WISC), an indirect subsidiary of WDR. Under the agreement, WISC acts as the agent in providing bookkeeping and accounting services and assistance to the Trust, including maintenance of Fund records, pricing of Fund shares and preparation of certain shareholder reports. For these services, each Fund, other than Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund (the Ivy Managed Funds), pays WISC a monthly fee of one-twelfth of the annual fee shown in the following table:

Accounting Services Fee
Average Net Asset Level (in millions)						Annual Fee Rate for Each Level
From	$	0	to	$	10	$	0
From	$	10	to	$	25	$	11.5
From	$	25	to	$	50	$	23.1
From	$	50	to	$	100	$	35.5
From	$	100	to	$	200	$	48.4
From	$	200	to	$	350	$	63.2
From	$	350	to	$	550	$	82.5
From	$	550	to	$	750	$	96.3
From	$	750	to	$	1,000	$	121.6
From	$	1,000 and Over				$	148.5

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

Under the Accounting and Administrative Services Agreement for the Ivy Managed Funds, each Fund pays WISC a monthly fee of one-twelfth of the annual fee shown in the following table for its services:

Accounting Services Fee
Average Net Asset Level (in millions)						Annual Fee Rate for Each Level
From	$	0	to	$	10	$	0
From	$	10	to	$	25	$	5.748
From	$	25	to	$	50	$	11.550
From	$	50	to	$	100	$	17.748
From	$	100	to	$	200	$	24.198
From	$	200	to	$	350	$	31.602
From	$	350	to	$	550	$	41.250
From	$	550	to	$	750	$	48.150
From	$	750	to	$	1,000	$	60.798
From	$	1,000 and Over				$	74.250

In addition, for each class of shares in excess of one, each of the Ivy Managed Funds pays WISC a monthly per-class fee equal to 1.25% of the monthly accounting services base fee.

Administrative Fee. Each Fund also pays WISC a monthly 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 is voluntarily waived by WISC until a Fund's net assets are at least $10 million.

Shareholder Servicing. General. Under the Shareholder Servicing Agreement between the Trust and WISC, 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, each Fund pays a monthly fee that ranges from $1.5042 to $1.6958; however, WISC has agreed to reduce that fee if the number of total shareholder accounts within the Complex (Waddell & Reed Advisors Funds, Waddell & Reed InvestEd Portfolios and Ivy Funds) reaches certain levels. 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 ave rage 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. Each Fund also reimburses WISC for certain out-of-pocket costs for all classes.
Networked accounts. For certain networked accounts (that is, those accounts whose Fund shares are purchased through certain financial intermediaries), WISC 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. If the aggregate annual rate of the WISC transfer agent fee and the costs charged by the financial services companies exceeds $18.00 per account for a Fund, WISC will reimburse the Fund the amount in excess of $18.00.
Broker accounts. Certain broker-dealers that maintain shareholder accounts with each Fund through an omnibus account provide transfer agent and other shareholder-related services that would otherwise be provided by WISC if the individual accounts that comprise the omnibus account were opened by their beneficial owners directly. Each Fund may pay such broker-dealers a per account fee for each open account within the omnibus account, or a fixed rate fee, based on the average daily net asset value of the omnibus account (or a combination thereof).

Distribution and Service Plan. Class A and Class E Shares. Under a Distribution and Service Plan adopted by the Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the Distribution and Service Plan), each Fund, other than Ivy Money Market Fund, may pay a distribution and/or service fee to Ivy Funds Distributors, Inc. (IFDI) for Class A and Class E shares 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 and Class E shares and/or provision of personal services to Fund shareholders and/or maintenance of shareholder accounts of that class.
Class B and Class C Shares. Under the Distribution and Service Plan, each Fund may pay IFDI a service fee not to exceed 0.25% and a distribution fee not to exceed 0.75% of the Fund's average annual net assets for Class B and Class C shares 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.
Class R Shares. Under the Distribution and Service 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.
Class Y Shares. Under the Distribution and Service 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.

Sales Charges. As principal underwriter for the Trust's shares, IFDI receives sales commissions (which are not an expense of the Trust) for Class A and Class E shares. A contingent deferred sales charge (CDSC) may be assessed against a shareholder's redemption amount of Class B, Class C or certain Class A and Class E shares and is paid to IFDI. During the fiscal period ended September 30, 2010, IFDI received the following amounts in sales commissions and CDSCs:

	Gross Sale Commissions			CDSC
Fund				Class A				Class B				Class C				Class E
Ivy Bond Fund		$	203		$	2			$	5			$	1		$	––
Ivy Capital Appreciation Fund			228			––	*			6				1			––
Ivy Core Equity Fund			71			2				3				2			––
Ivy Cundill Global Value Fund			119			––	*			10				1			––
Ivy Dividend Opportunities Fund			128			1				3				2			––
Ivy European Opportunities Fund			100			––	*			7				––	*		––
Ivy Global Bond Fund			99			3				6				5			––
Ivy High Income Fund			569			15				41				39			––
Ivy International Balanced Fund			135			––	*			4				––	*		––
Ivy International Core Equity Fund			282			4				7				12			––
Ivy International Growth Fund			52			––	*			3				––	*		––
Ivy Large Cap Growth Fund			223			––	*			5				3			––
Ivy Limited-Term Bond Fund			933			37				18				38			––
Ivy Managed European/Pacific Fund			63			––	*			1				––	*		––
Ivy Managed International Opportunities Fund			111			––	*			1				––	*		––
Ivy Micro Cap Growth Fund			130			––				––	*			––	*		––
Ivy Mid Cap Growth Fund			144			––	*			3				1			––
Ivy Money Market Fund			––			––	*			29				8			––
Ivy Mortgage Securities Fund			48			1				1				––	*		––
Ivy Municipal Bond Fund			59			3				1				––	*		––
Ivy Municipal High Income Fund			170			––	*			2				3			––
Ivy Pacific Opportunities Fund			415			4				10				4			––
Ivy Small Cap Growth Fund			125			––	*			4				6			––
Ivy Small Cap Value Fund			168			––	*			2				3			––
Ivy Tax-Managed Equity Fund			2			1				––				––	*		––
Ivy Value Fund			42			––	*			1				––	*		––
*Not shown due to rounding.

With respect to Class A, Class B, Class C and Class E shares, IFDI pays sales commissions and all expenses in connection with the sale of the Trust's shares, except for registration fees and related expenses. During the fiscal period ended September 30, 2010, the following amounts were paid by IFDI:

Ivy Bond Fund	$	205
Ivy Capital Appreciation Fund		237
Ivy Core Equity Fund		86
Ivy Cundill Global Value Fund		126
Ivy Dividend Opportunities Fund		167
Ivy European Opportunities Fund		104
Ivy Global Bond Fund		145
Ivy High Income Fund		1,289
Ivy International Balanced Fund		143
Ivy International Core Equity Fund		434
Ivy International Growth Fund		62
Ivy Large Cap Growth Fund		248
Ivy Limited-Term Bond Fund		1,397
Ivy Managed European/Pacific Fund		58
Ivy Managed International Opportunities Fund		101
Ivy Micro Cap Growth Fund		116
Ivy Mid Cap Growth Fund		195
Ivy Money Market Fund		––
Ivy Mortgage Securities Fund		49
Ivy Municipal Bond Fund		84
Ivy Municipal High Income Fund		538
Ivy Pacific Opportunities Fund		435
Ivy Small Cap Growth Fund		167
Ivy Small Cap Value Fund		181
Ivy Tax-Managed Equity Fund		2
Ivy Value Fund		42

Expense Reimbursements and/or Waivers. Fund and class expense limitations and related waivers/reimbursements for the fiscal period ended September 30, 2010 are as follows:

Fund Name	Share Class Name	Type of Expense Limit	Commence- ment Date	End Date	Expense Limit	Amount of Expense Reduction			Expense Reduced
Ivy Bond Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.21%	$	3		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2008	7-31-2011	1.21%	$	––		NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Capital Appreciation Fund
	Class A	Contractual	8-1-2008	7-31-2010	1.35%	$	––		NA
	Class E	Contractual	8-1-2008	7-31-2011	1.15%	$	8		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Core Equity Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.35%	$	3		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Cundill Global Value Fund
	Class A	Contractual	6-16-2003	12-31-2011	2.75%	$	––		NA
	Class A	Voluntary	NA	NA	1.90%	$	––		NA
	Class B	Contractual	6-16-2003	12-31-2011	3.50%	$	––		NA
	Class C	Contractual	6-16-2003	12-31-2011	3.50%	$	––		NA
	Class C	Voluntary	NA	NA	2.55%	$	––		NA
	Class E	Contractual	8-1-2008	7-31-2011	1.59%	$	2		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-16-2003	12-31-2011	2.75%	$	––		NA
	Class Y	Voluntary	NA	NA	1.20%	$	27		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Dividend Opportunities Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.37%	$	9		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy European Opportunities Fund
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Global Bond Fund
	All Classes	Contractual	6-2-2008	7-31-2011	NA	$	37	(1)	Investment Management Fee
	Class A	Contractual	6-2-2008	7-31-2011	0.99%	$	120		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-2-2008	7-31-2011	1.74%	$	6		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	6-2-2008	7-31-2011	1.74%	$	30		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-2-2008	7-31-2011	0.74%	$	11		Shareholder Servicing
	Class Y	Contractual	6-2-2008	7-31-2011	0.99%	$	12		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy High Income Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.36%	$	4		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy International Balanced Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.33%	$	5		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy International Core Equity Fund
	Class A	Contractual	6-16-2003	12-31-2011	2.75%	$	––		NA
	Class B	Contractual	6-16-2003	12-31-2011	3.50%	$	––		NA
	Class C	Contractual	6-16-2003	12-31-2011	3.50%	$	––		NA
	Class E	Contractual	8-1-2008	7-31-2011	1.53%	$	8		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-16-2003	12-31-2011	2.75%	$	––		NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy International Growth Fund
	Class Y	Contractual	8-1-2008	7-31-2011	1.42%	$	1		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Large Cap Growth Fund
	Class A	Contractual	8-1-2008	7-31-2011	1.15%	$	298		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2011	1.15%	$	4		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2008	7-31-2011	1.06%	$	56		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Limited-Term Bond Fund
	Class E	Contractual	8-1-2010	7-31-2011	1.00%	$	1		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		12b-1 Fees and/or Shareholder Servicing
Ivy Managed European/Pacific Fund
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Managed International Opportunities Fund
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		12b-1 Fees and/or Shareholder Servicing
Ivy Micro Cap Growth Fund
	Class A	Contractual	7-31-2009	7-31-2011	1.95%	$	21		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	7-31-2009	7-31-2011	1.70%	$	––		NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Mid Cap Growth Fund
	Class A	Voluntary	NA	NA	1.65%	$	––		NA
	Class C	Voluntary	NA	NA	2.35%	$	––		NA
	Class E	Contractual	8-1-2008	7-31-2011	1.60%	$	5		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	1.25%	$	38		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Money Market Fund
	All Classes	Voluntary	NA	NA	NA	$	39	(3)	Investment Management Fee
	Class A	Voluntary	NA	NA	To maintain minimum yield(2)	$	139		12b-1 Fees and/or Shareholder Servicing
	Class B	Voluntary	NA	NA	To maintain minimum yield(2)	$	56		12b-1 Fees and/or Shareholder Servicing
	Class C	Voluntary	NA	NA	To maintain minimum yield(2)	$	246		12b-1 Fees and/or Shareholder Servicing
	Class E	Voluntary	NA	NA	To maintain minimum yield(2)	$	5		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2010	0.88%	$	––		NA
Ivy Mortgage Securities Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.14%	$	1		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Municipal Bond Fund
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		12b-1 Fees and/or Shareholder Servicing
Ivy Municipal High Income Fund
	All Classes	Contractual	5-18-2009	7-31-2011	NA	$	28	(4)	Investment management fee and other common expenses
	Class A	Contractual	5-18-2009	7-31-2011	0.95%	$	13		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	5-18-2009	7-31-2011	1.73%	$	––	*	12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	5-18-2009	7-31-2011	1.77%	$	––		NA
	Class I	Contractual	5-18-2009	7-31-2011	0.70%	$	22		Shareholder Servicing
	Class Y	Contractual	5-18-2009	7-31-2011	1.10%	$	––		NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		12b-1 Fees and/or Shareholder Servicing
Ivy Pacific Opportunities Fund
	Class A	Contractual	6-16-2003	12-31-2011	2.75%	$	––		NA
	Class B	Contractual	6-16-2003	12-31-2011	3.50%	$	––		NA
	Class C	Contractual	6-16-2003	12-31-2011	3.50%	$	––		NA
	Class Y	Contractual	6-16-2003	12-31-2011	2.75%	$	––		NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Small Cap Growth Fund
	Class E	Contractual	8-1-2008	7-31-2011	1.56%	$	6		12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Small Cap Value Fund
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Tax-Managed Equity Fund
	All Classes	Contractual	5-18-2009	7-31-2011	NA	$	24	(5)	Investment management fee and other common expenses
	Class I	Contractual	5-18-2009	7-31-2011	2.11%	$	1		Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
Ivy Value Fund
	Class A	Contractual	8-1-2010	7-31-2011	1.55%	$	25		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	8-1-2010	7-31-2011	1.30%	$	––		NA
	Class Y	Contractual	8-1-2010	7-31-2011	1.55%	$	––		NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$	––		NA
*Not shown due to rounding.
(1)Due to Class A, Class B, Class C, Class I and/or Class Y contractual expense limits, investment management fees were waived for all share classes.
(2)Minimum yield was 0.02% throughout the period of this report.
(3)To maintain minimum yield, investment management fees were waived for all share classes.
(4)Due to Class A, Class B, Class C, Class I and/or Class Y contractual expense limits, investment management fee and/or other common expenses were waived for all share classes.
(5)Due to Class I contractual expense limit, investment management fee and/or other common expenses were waived for all share classes.

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2010 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

3. INVESTMENT VALUATIONS

Fair value is defined as the price that each Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities

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

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

The following tables summarize the valuation of each Fund's investments by the above fair value hierarchy levels as of September 30, 2010. The Schedule of Investments provides additional details on each Fund's portfolio holdings.

Fund	Level 1		Level 2		Level 3
Ivy Bond Fund
Assets
Investments in Securities
Preferred Stocks	$	––	$	319	$	––
Corporate Debt Securities		––		127,638		5,870
Other Government Securities		––		4,800		––
United States Government Agency Obligations		––		85,878		2,586
United States Government Obligations		––		43,851		––
Short-Term Securities		––		44,486		––
Total Investments in Securities	$	––	$	306,972	$	8,456
Liabilities
Futures Contracts	$	173	$	––	$	––
Ivy Capital Appreciation Fund
Assets
Investments in Securities
Common Stocks	$	483,129	$	––	$	––
Short-Term Securities		––		47,427		––
Total Investments in Securities	$	483,129	$	47,427	$	––
Ivy Core Equity Fund
Assets
Investments in Securities
Common Stocks	$	190,407	$	––	$	––
Short-Term Securities		––		26,760		––
Total Investments in Securities	$	190,407	$	26,760	$	––
Ivy Cundill Global Value Fund
Assets
Investments in Securities
Common Stocks	$	250,196	$	––	$	14,743
Preferred Stocks		12,645		9,337		––
Warrants		4,768		––		––
Short-Term Securities		––		20,332		––
Total Investments in Securities	$	267,609	$	29,669	$	14,743
Forward Foreign Currency Contracts	$	––	$	293	$	––
Liabilities
Forward Foreign Currency Contracts	$	––	$	2,755	$	––
Ivy Dividend Opportunities Fund
Assets
Investments in Securities
Common Stocks	$	257,563	$	––	$	––
Short-Term Securities		––		17,256		––
Total Investments in Securities	$	257,563	$	17,256	$	––
Ivy European Opportunities Fund
Assets
Investments in Securities
Common Stocks	$	229,430	$	––	$	––
Preferred Stocks		8,154		––		––
Short-Term Securities		––		5,728		––
Total Investments in Securities	$	237,584	$	5,728	$	––
Ivy Global Bond Fund
Assets
Investments in Securities
Common Stocks	$	638	$	––	$	––
Corporate Debt Securities		––		116,265		1,334
Other Government Securities		––		4,565		334
United States Government Agency Obligations		––		5,657		––
United States Government Obligations		––		35,337		––
Short-Term Securities		––		34,411		––
Total Investments in Securities	$	638	$	196,235	$	1,668
Forward Foreign Currency Contracts	$	––	$	46	$	––
Liabilities
Forward Foreign Currency Contracts	$	––	$	607	$	––
Ivy High Income Fund
Assets
Investments in Securities
Common Stocks	$	14,224	$	578	$	––
Preferred Stocks		––		277		––
Warrants		––		1,287		2,766
Corporate Debt Securities		––		986,124		23,000
Municipal Bonds		––		6,467		––
Senior Loans		––		211,754		134,536
Short-Term Securities		––		126,119		––
Total Investments in Securities	$	14,224	$	1,332,606	$	160,302
Forward Foreign Currency Contracts	$	––	$	522	$	––
Liabilities
Forward Foreign Currency Contracts	$	––	$	169	$	––
Ivy International Balanced Fund
Assets
Investments in Securities
Common Stocks	$	176,619	$	507	$	––
Corporate Debt Securities		––		33,004		4,388
Other Government Securities		––		46,670		––
Short-Term Securities		––		3,782		––
Total Investments in Securities	$	176,619	$	83,963	$	4,388
Ivy International Core Equity Fund
Assets
Investments in Securities
Common Stocks	$	859,970	$	2,058	$	––
Short-Term Securities		––		17,312		––
Total Investments in Securities	$	859,970	$	19,370	$	––
Ivy International Growth Fund
Assets
Investments in Securities
Common Stocks	$	167,893	$	––	$	––
Preferred Stocks		3,704		––		––
Short-Term Securities		––		8,819		––
Total Investments in Securities	$	171,597	$	8,819	$	––
Swap Agreements	$	––	$	1,161	$	––
Ivy Large Cap Growth Fund
Assets
Investments in Securities
Common Stocks	$	809,375	$	––	$	––
Short-Term Securities		––		4,555		––
Total Investments in Securities	$	809,375	$	4,555	$	––
Ivy Limited-Term Bond Fund
Assets
Investments in Securities
Corporate Debt Securities	$	––	$	535,255	$	––
Municipal Bonds		––		30,319		––
United States Government Agency Obligations		––		347,706		––
United States Government Obligations		––		266,342		––
Short-Term Securities		––		20,769		––
Total Investments in Securities	$	––	$	1,200,391	$	––
Ivy Managed European/Pacific Fund
Assets
Investments in Securities
Affiliated Mutual Funds	$	84,413	$	––	$	––
Short-Term Securities		––		90		––
Total Investments in Securities	$	84,413	$	90	$	––
Ivy Managed International Opportunities Fund
Assets
Investments in Securities
Affiliated Mutual Funds	$	169,826	$	––	$	––
Short-Term Securities		––		109		––
Total Investments in Securities	$	169,826	$	109	$	––
Ivy Micro Cap Growth Fund
Assets
Investments in Securities
Common Stocks	$	45,895	$	––	$	––
Short-Term Securities		––		1,684		––
Total Investments in Securities	$	45,895	$	1,684	$	––
Ivy Mid Cap Growth Fund
Assets
Investments in Securities
Common Stocks	$	350,433	$	––	$	––
Short-Term Securities		––		8,092		––
Total Investments in Securities	$	350,433	$	8,092	$	––
Liabilities
Written Options	$	37	$	67	$	––
Ivy Money Market Fund
Assets
Investments in Securities
Corporate Obligations	$	––	$	146,451	$	––
Municipal Obligations		––		86,085		––
United States Government Agency Obligations		––		7,954		––
Total Investments in Securities	$	––	$	240,490	$	––
Ivy Mortgage Securities Fund
Assets
Investments in Securities
Corporate Debt Securities	$	––	$	20,424	$	4,035
United States Government Agency Obligations		––		82,388		––
United States Government Obligations		––		531		––
Short-Term Securities		––		24,073		––
Total Investments in Securities	$	––	$	127,416	$	4,035
Futures Contracts	$	1	$	––	$	––
Liabilities
Futures Contracts	$	102	$	––	$	––
Ivy Municipal Bond Fund
Assets
Investments in Securities
Municipal Bonds	$	––	$	87,831	$	––
Short-Term Securities		––		9,141		––
Total Investments in Securities	$	––	$	96,972	$	––
Ivy Municipal High Income Fund
Assets
Investments in Securities
Municipal Bonds	$	––	$	234,030	$	––
Short-Term Securities		––		27,851		––
Total Investments in Securities	$	––	$	261,881	$	––
Ivy Pacific Opportunities Fund
Assets
Investments in Securities
Common Stocks	$	661,208	$	15,773	$	––
Investment Funds		––		––		2,170
Warrants		365		––		––
Short-Term Securities		––		41,583		––
Total Investments in Securities	$	661,573	$	57,356	$	2,170
Liabilities
Forward Foreign Currency Contracts	$	––	$	1,467	$	––
Ivy Small Cap Growth Fund
Assets
Investments in Securities
Common Stocks	$	497,110	$	––	$	––
Short-Term Securities		––		18,560		––
Total Investments in Securities	$	497,110	$	18,560	$	––
Ivy Small Cap Value Fund
Assets
Investments in Securities
Common Stocks	$	217,199	$	––	$	––
Investment Funds		14,032		––		––
Short-Term Securities		––		5,389		––
Total Investments in Securities	$	231,231	$	5,389	$	––
Liabilities
Written Options	$	174	$	41	$	––
Ivy Tax-Managed Equity Fund
Assets
Investments in Securities
Common Stocks	$	6,448	$	––	$	––
Short-Term Securities		––		587		––
Total Investments in Securities	$	6,448	$	587	$	––
Ivy Value Fund
Assets
Investments in Securities
Common Stocks	$	66,198	$	––	$	––
Warrants		522		––		––
Short-Term Securities		––		4,328		––
Total Investments in Securities	$	66,720	$	4,328	$	––
Liabilities
Written Options	$	144	$	––	$	––

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

	Corporate Debt Securities				United States Government Agency Obligations
Ivy Bond Fund
Beginning Balance 4-1-10		$	4,319			$	––
Net realized gain (loss)			36				––
Net unrealized appreciation (depreciation)			198				13
Purchases			1,184				2,573
Sales			(411	)			––
Transfers into Level 3 during the period			544				––
Transfers out of Level 3 during the period			––				––
Ending Balance 9-30-10		$	5,870			$	2,586
Net change in unrealized appreciation (depreciation) for all Level 3 investments       still held as of 9-30-10		$	336			$	13

	Common Stocks
Ivy Cundill Global Value Fund
Beginning Balance 4-1-10		$	12,261
Net realized gain (loss)			––
Net unrealized appreciation (depreciation)			––
Purchases			––
Sales			––
Transfers into Level 3 during the period			14,743
Transfers out of Level 3 during the period		(12,261		)
Ending Balance 9-30-10		$	14,743
Net change in unrealized appreciation (depreciation) for all Level 3 investments       still held as of 9-30-10		$	3,617

	Corporate Debt Securities				Other Government Securities
Ivy Global Bond Fund
Beginning Balance 4-1-10		$	205			$	347
Net realized gain (loss)			––				––
Net unrealized appreciation (depreciation)			(6	)			(13	)
Purchases			––				––
Sales			––				––
Transfers into Level 3 during the period			1,135				––
Transfers out of Level 3 during the period			––				––
Ending Balance 9-30-10		$	1,334			$	334
Net change in unrealized appreciation (depreciation) for all Level 3 investments       still held as of 9-30-10		$	(6	)		$	(13	)

	Warrants			Corporate Debt Securities				Senior Loans
Ivy High Income Fund
Beginning Balance 4-1-10	$	––	*		$	18,252			$	41,495
Net realized gain (loss)		––				(47	)			1,982
Net unrealized appreciation (depreciation)		2,766				72				(1,431	)
Purchases		––				––				39,405
Sales		––				(25	)			(8,269	)
Transfers into Level 3 during the period		––				23,000				61,354
Transfers out of Level 3 during the period		––			(18,252		)			––
Ending Balance 9-30-10	$	2,766			$	23,000			$	134,536
Net change in unrealized appreciation (depreciation) for all       Level 3 investments still held as of 9-30-10	$	2,766			$	115			$	549
*Not shown due to rounding

	Corporate Debt Securities
Ivy International Balanced Fund
Beginning Balance 4-1-10		$	––
Net realized gain (loss)			––
Net unrealized appreciation (depreciation)			––
Purchases			––
Sales			––
Transfers into Level 3 during the period			4,388
Transfers out of Level 3 during the period			––
Ending Balance 9-30-10		$	4,388
Net change in unrealized appreciation (depreciation) for all Level 3 investments       still held as of 9-30-10		$	213

	United States Government Agency Obligations
Ivy Limited-Term Bond Fund
Beginning Balance 4-1-10		$	9,984
Net realized gain (loss)			––
Net unrealized appreciation (depreciation)			––
Purchases			––
Sales			––
Transfers into Level 3 during the period			––
Transfers out of Level 3 during the period			(9,984	)
Ending Balance 9-30-10		$	––
Net change in unrealized appreciation (depreciation) for all Level 3 investments       still held as of 9-30-10		$	––

	Written Options
Ivy Mid Cap Growth Fund
Beginning Balance 4-1-10		$	(192	)
Net realized gain (loss)			(302	)
Net unrealized appreciation (depreciation)			139
Purchases			––
Sales			355
Transfers into Level 3 during the period			––
Transfers out of Level 3 during the period			––
Ending Balance 9-30-10		$	––
Net change in unrealized appreciation (depreciation) for all Level 3 investments       still held as of 9-30-10		$	––

	Corporate Debt Securities
Ivy Mortgage Securities Fund
Beginning Balance 4-1-10		$	3,902
Net realized gain (loss)			(2	)
Net unrealized appreciation (depreciation)			331
Purchases			––
Sales			(199	)
Transfers into Level 3 during the period			3
Transfers out of Level 3 during the period			––
Ending Balance 9-30-10		$	4,035
Net change in unrealized appreciation (depreciation) for all Level 3 investments       still held as of 9-30-10		$	1,025

	Investment Funds
Ivy Pacific Opportunities Fund
Beginning Balance 4-1-10		$	2,355
Net realized gain (loss)			––
Net unrealized appreciation (depreciation)			(185	)
Purchases			––
Sales			––
Transfers into Level 3 during the period			––
Transfers out of Level 3 during the period			––
Ending Balance 9-30-10		$	2,170
Net change in unrealized appreciation (depreciation) for all Level 3 investments       still held as of 9-30-10		$	(185	)

	Written Options
Ivy Value Fund
Beginning Balance 4-1-10		$	(34	)
Net realized gain (loss)			14
Net unrealized appreciation (depreciation)			18
Purchases			––
Sales			2
Transfers into Level 3 during the period			––
Transfers out of Level 3 during the period			––
Ending Balance 9-30-10		$	––
Net change in unrealized appreciation (depreciation) for all Level 3 investments       still held as of 9-30-10		$	––

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the value at the later of the beginning of the fiscal period or the purchase date of the security.

Net realized gain (loss) and net unrealized appreciation (depreciation), shown on the reconciliation of Level 3 investments if applicable, are included on the Statement of Operations in net realized gain (loss) on investments in unaffiliated securities and in net change in unrealized appreciation (depreciation) on investments in unaffiliated securities, respectively. Additionally, the net change in unrealized appreciation for all Level 3 investments still held as of September 30, 2010, if applicable, is included on the Statement of Operations in net change in unrealized appreciation (depreciation) on investments in unaffiliated securities.

As shown above, the Funds may own different types of assets that are classified as Level 2 or Level 3. Assets classified as Level 2 can have a variety of observable inputs, including, but not limited to, benchmark yields, reported trades, broker quotes, benchmark securities, and bid/offer quotations. These observable inputs are collected and utilized, primarily by an independent pricing service, in different evaluated pricing approaches depending upon the specific asset to determine a value.

Securities' values included in the reconciliations above have been primarily determined through the use of a single quote (or multiple quotes) from dealer(s) in the securities using proprietary valuation models. These quotes involve significant unobservable inputs, and thus the related securities are classified as Level 3 investments.

4. INVESTMENT SECURITIES TRANSACTIONS

For the fiscal period ended September 30, 2010, the cost of purchases and the proceeds from maturities and sales of investment securities, other than U.S. Government and short-term securities, were as follows:

Fund	Purchases		Sales
Ivy Bond Fund	$	109,237	$	87,439
Ivy Capital Appreciation Fund		85,060		150,039
Ivy Core Equity Fund		139,276		137,874
Ivy Cundill Global Value Fund		76,390		98,685
Ivy Dividend Opportunities Fund		53,155		41,449
Ivy European Opportunities Fund		41,868		48,004
Ivy Global Bond Fund		28,158		22,561
Ivy High Income Fund		801,519		591,202
Ivy International Balanced Fund		104,635		113,098
Ivy International Core Equity Fund		520,954		385,193
Ivy International Growth Fund		67,703		80,592
Ivy Large Cap Growth Fund		334,418		418,115
Ivy Limited-Term Bond Fund		130,831		87,168
Ivy Managed European/Pacific Fund		3,490		3,548
Ivy Managed International Opportunities Fund		37,301		35,218
Ivy Micro Cap Growth Fund		31,075		13,857
Ivy Mid Cap Growth Fund		137,045		51,403
Ivy Money Market Fund		––		––
Ivy Mortgage Securities Fund		1,391		14,136
Ivy Municipal Bond Fund		15,736		2,034
Ivy Municipal High Income Fund		185,196		423
Ivy Pacific Opportunities Fund		327,138		349,408
Ivy Small Cap Growth Fund		157,325		106,312
Ivy Small Cap Value Fund		72,671		65,278
Ivy Tax-Managed Equity Fund		3,052		1,156
Ivy Value Fund		15,678		12,022

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

Fund	Purchases		Sales
Ivy Bond Fund	$	475,429	$	428,597
Ivy Global Bond Fund		9,841		1,379
Ivy Limited-Term Bond Fund		369,949		134,521
Ivy Mortgage Securities Fund		210,532		225,267

5. FEDERAL INCOME TAX MATTERS

For Federal income tax purposes, cost of investments owned at September 30, 2010 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of investments		Gross appreciation		Gross depreciation		Net unrealized appreciation (depreciation)
Ivy Bond Fund	$	310,070	$	9,412	$	4,054	$	5,358
Ivy Capital Appreciation Fund		489,770		72,802		32,016		40,786
Ivy Core Equity Fund		199,675		22,065		4,573		17,492
Ivy Cundill Global Value Fund		267,445		60,841		16,265		44,576
Ivy Dividend Opportunities Fund		241,355		37,357		3,893		33,464
Ivy European Opportunities Fund		229,618		34,159		20,465		13,694
Ivy Global Bond Fund		190,690		8,690		839		7,851
Ivy High Income Fund		1,424,055		90,516		7,439		83,077
Ivy International Balanced Fund		248,568		22,299		5,897		16,402
Ivy International Core Equity Fund		835,037		63,285		18,982		44,303
Ivy International Growth Fund		166,412		20,379		6,399		13,980
Ivy Large Cap Growth Fund		676,012		141,562		3,644		137,918
Ivy Limited-Term Bond Fund		1,149,628		50,911		148		50,763
Ivy Managed European/Pacific Fund		80,618		3,885		––		3,885
Ivy Managed International Opportunities Fund		163,974		10,779		4,818		5,961
Ivy Micro Cap Growth Fund		43,095		6,419		1,935		4,484
Ivy Mid Cap Growth Fund		296,172		65,426		3,073		62,353
Ivy Money Market Fund		240,490		––		––		––
Ivy Mortgage Securities Fund		151,390		3,461		23,400		(19,939	)
Ivy Municipal Bond Fund		90,150		7,040		218		6,822
Ivy Municipal High Income Fund		254,503		7,401		23		7,378
Ivy Pacific Opportunities Fund		586,793		152,651		19,167		133,484
Ivy Small Cap Growth Fund		406,430		117,073		7,833		109,240
Ivy Small Cap Value Fund		201,461		40,297		5,138		35,159
Ivy Tax-Managed Equity Fund		6,292		807		64		743
Ivy Value Fund		64,811		8,331		2,094		6,237

For Federal income tax purposes, the Funds' distributed and undistributed earnings and profit for the fiscal year ended March 31, 2010 and the related net capital losses and post-October activity updated with information available through the date of this report were as follows:

Ivy Bond Fund

Ivy Capital Appreciation Fund

Ivy Core Equity Fund

Ivy Cundill Global Value Fund

Ivy Dividend Opportunities Fund

Ivy European Opportunities Fund

Ivy Global Bond Fund

Net ordinary income

$

5,288

$

829

$

––

$

2,054

$

2,334

$

4,765

$

3,185

Distributed ordinary     income

5,246

540

––

2,144

1,925

4,116

3,133

Undistributed ordinary     income

67

289

––

––

505

649

316

Realized long term     capital gains

––

––

––

––

––

––

––

Distributed long     term capital gains

––

––

––

––

––

––

––

Undistributed long term     capital gains

––

––

––

––

––

––

––

Tax return of capital

––

––

219

666

––

––

––

Post-October losses     deferred

874

1,871

––

8,308

––

1,274

174

Ivy High Income Fund

Ivy International Balanced Fund

Ivy International Core Equity Fund

Ivy International Growth Fund

Ivy Large Cap Growth Fund

Ivy Limited- Term Bond Fund

Ivy Managed European/ Pacific Fund

Net ordinary income

$

119,184

$

––

$

5,022

$

1,650

$

2,736

$

20,306

$

––

Distributed ordinary     income

95,696

392

4,695

1,509

3,888

20,171

21

Undistributed ordinary     income

25,165

––

649

243

––

245

––

Realized long term     capital gains

––

––

––

––

––

1,156

––

Distributed long term     capital gains

––

––

––

––

––

452

––

Undistributed long     term capital gains

––

––

––

––

––

703

––

Tax return of capital

––

––

––

––

––

––

92

Post-October losses     deferred

––

655

5,722

57

––

––

––

Ivy Managed International Opportunities Fund

Ivy Micro Cap Growth Fund

Ivy Mid Cap Growth Fund

Ivy Money Market Fund

Ivy Mortgage Securities Fund

Ivy Municipal Bond Fund

Ivy Municipal High Income Fund

Net ordinary income

$

341

$

1,312

$

––

$

1,264

$

6,728

$

2,463

$

758

Distributed ordinary     income

341

572

––

1,267

6,716

2,453

701

Undistributed ordinary     income

––

740

––

60

76

28

57

Realized long term     capital gains

––

304

––

––

––

––

––

Distributed long term     capital gains

––

––

––

––

––

––

––

Undistributed long term     capital gains

––

304

––

––

––

––

––

Tax return of capital

272

––

––

––

––

––

––

Post-October losses     deferred

1

––

––

––

*

6,813

16

4

Ivy Pacific Opportunities Fund

Ivy Small Cap Growth Fund

Ivy Small Cap Value Fund

Ivy Tax-Managed Equity Fund

Ivy Value Fund

Net ordinary income

$

––

$

––

$

––

$

––

$

44

Distributed ordinary income

––

––

––

––

103

Undistributed ordinary income

––

––

––

––

––

Realized long term capital gains

––

––

––

––

––

Distributed long term capital gains

––

––

––

––

––

Undistributed long term capital gains

––

––

––

––

––

Tax return of capital

––

––

––

––

55

Post-October losses deferred

8,696

––

1

––

*

961

*Not shown due to rounding.

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). Distributions shown above may be reported differently to individual shareholders.

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

	Ivy Bond Fund			Ivy Capital Appreciation Fund		Ivy Core Equity Fund		Ivy Cundill Global Value Fund		Ivy Dividend Opportunities Fund		Ivy European Opportunities Fund		Ivy Global Bond Fund
March 31, 2011		$	––	$	––	$	3,245	$	––	$	––	$	––	$	––
March 31, 2015			335		––		––		––		––		––		––
March 31, 2017			2,157		67,670		4,846		16,673		5,985		49,771		––
March 31, 2018			259		162,357		361		83,613		36,103		132,101		240
Total carryover		$	2,751	$	230,027	$	8,452	$	100,286	$	42,088	$	181,872	$	240

	Ivy International Balanced Fund			Ivy International Core Equity Fund		Ivy International Growth Fund		Ivy Large Cap Growth Fund		Ivy Managed European/ Pacific Fund		Ivy Managed International Opportunities Fund		Ivy Mid Cap Growth Fund
March 31, 2011		$	––	$	––	$	47,214	$	––	$	––	$	––	$	5,584
March 31, 2012			––		––		––		––		––		––		561
March 31, 2017			––		35,471		8,672		37,506		3		2		––
March 31, 2018			66,135		7,599		23,988		32,974		16,286		11,127		1,132
Total carryover		$	66,135	$	43,070	$	79,874	$	70,480	$	16,289	$	11,129	$	7,277

	Ivy Mortgage Securities Fund			Ivy Municipal Bond Fund		Ivy Pacific Opportunities Fund		Ivy Small Cap Growth Fund		Ivy Small Cap Value Fund		Ivy Tax Managed Equity Fund		Ivy Value Fund
March 31, 2011		$	––	$	75	$	––	$	565	$	––	$	––	$	––
March 31, 2014			164		––		––		––		––		––		––
March 31, 2015			484		––		––		––		––		––		––
March 31, 2016			902		89		––		––		––		––		––
March 31, 2017			6,969		101		31,589		34,994		16,843		––		4,155
March 31, 2018			30,194		84		32,066		5,551		––		7		1,767
Total carryover		$	38,713	$	349	$	63,655	$	41,110	$	16,843	$	7	$	5,922

6. MULTICLASS OPERATIONS

The Trust has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class of each Fund. On April 1, 2010, all Advisor class shares were converted to Class I. Transactions in shares of beneficial interest were as follows:

		Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Bond Fund		Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A		7,000		$	70,425		9,087		$	86,676
Class B		197			1,974		464			4,427
Class C		1,540			15,474		1,426			13,502
Class E		65			655		120			1,145
Class I		37			370		452			4,389
Class Y		53			538		581			5,381
Shares issued in reinvestment of distributions to shareholders:
Class A		244			2,454		357			3,377
Class B		6			58		9			86
Class C		20			208		32			302
Class E		4			36		6			61
Class I		1			6		1			10
Class Y		10			97		15			144
Shares redeemed:
Class A	(2,118		)	(21,301		)	(3,480	)	(32,616		)
Class B		(102	)		(1,026	)	(218	)		(2,022	)
Class C		(425	)		(4,279	)	(1,011	)		(9,450	)
Class E		(21	)		(211	)	(26	)		(252	)
Class I		(15	)		(145	)	(410	)		(3,978	)
Class Y		(43	)		(430	)	(141	)		(1,276	)
Net increase		6,453		$	64,903		7,264		$	69,906

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Capital Appreciation Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	8,237		$	67,089		17,664		$	135,296
Class B	73			543		331			2,266
Class C	438			3,265		1,243			8,663
Class E	21			173		49			371
Class I	1,255			10,329		6,177			46,101
Class Y	128			1,079		323			2,477
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		12			97
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––	*		3
Class I	––			––		44			363
Class Y	––			––		––	*		2
Shares redeemed:
Class A	(9,525	)	(77,541		)	(12,124	)		(92,290	)
Class B	(172	)		(1,271	)	(408	)		(2,802	)
Class C	(1,631	)		(12,059	)	(2,856	)		(19,948	)
Class E	(16	)		(127	)	(34	)		(270	)
Class I	(2,104	)		(17,171	)	(3,944	)		(30,175	)
Class Y	(264	)		(2,141	)	(2,157	)		(14,628	)
Net increase (decrease)	(3,560	)	$	(27,832	)	4,320		$	35,526
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Core Equity Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	1,900		$	16,431		2,799		$	21,784
Class B	46			359		115			829
Class C	577			4,640		944			6,984
Class E	20			178		24			185
Class I	140			1,288		340			2,773
Class Y	464			4,387		310			2,373
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		22			176
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––	*		2
Class I	––			––		––	*		2
Class Y	––			––		2			16
Shares redeemed:
Class A	(1,450	)		(12,480	)	(2,694	)		(20,803	)
Class B	(128	)		(1,006	)	(284	)		(1,987	)
Class C	(1,286	)		(10,251	)	(2,590	)		(18,585	)
Class E	(4	)		(32	)	(8	)		(63	)
Class I	(27	)		(250	)	(105	)		(883	)
Class Y	(325	)		(2,894	)	(324	)		(2,575	)
Net increase (decrease)	(73	)	$	370		(1,449	)	$	(9,772	)

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Cundill Global Value Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	1,479		$	18,023		2,323		$	25,843
Class B	37			428		78			841
Class C	66			789		150			1,615
Class E	3			32		7			76
Class I	149			1,887		338			3,733
Class Y	222			2,718		1,205			13,194
Advisor Class	––			––		––	*		––	*
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		180			2,147
Class B	––			––		5			54
Class C	––			––		17			200
Class E	––			––		––	*		5
Class I	––			––		5			56
Class Y	––			––		15			177
Advisor Class	––			––		2			31
Shares redeemed:
Class A	(2,652	)		(32,095	)	(6,496	)		(71,582	)
Class B	(233	)		(2,720	)	(576	)		(6,176	)
Class C	(468	)		(5,474	)	(1,496	)		(16,031	)
Class E	(1	)		(9	)	(6	)		(64	)
Class I	(92	)		(1,113	)	(311	)		(3,606	)
Class Y	(179	)		(2,155	)	(911	)		(9,444	)
Advisor Class	(99	)		(1,266	)	(78	)		(959	)
Net decrease	(1,768	)	$	(20,955	)	(5,549	)	$	(59,890	)
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Dividend Opportunities Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	3,094		$	39,900		4,719		$	57,787
Class B	199			2,526		174			2,117
Class C	360			4,623		810			9,852
Class E	15			200		44			548
Class I	90			1,181		496			5,832
Class Y	113			1,483		496			6,114
Shares issued in reinvestment of distributions to shareholders:
Class A	62			785		118			1,481
Class B	––	*		3		––	*		6
Class C	4			50		7			91
Class E	1			11		2			20
Class I	2			21		3			36
Class Y	5			68		11			135
Shares redeemed:
Class A	(1,970	)		(25,483	)	(4,971	)		(61,276	)
Class B	(72	)		(921	)	(302	)		(3,686	)
Class C	(467	)		(6,017	)	(1,430	)		(16,999	)
Class E	(9	)		(116	)	(28	)		(350	)
Class I	(77	)		(988	)	(280	)		(3,420	)
Class Y	(180	)		(2,289	)	(846	)		(10,404	)
Net increase (decrease)	1,170		$	15,037		(977	)	$	(12,116	)

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy European Opportunities Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	843		$	17,034		2,050		$	42,145
Class B	13			255		30			562
Class C	14			271		43			835
Class E	––			––		––			––
Class I	152			3,123		463			9,384
Class Y	7			136		26			536
Advisor Class	––			––		––	*		7
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		135			2,905
Class B	––			––		4			87
Class C	––			––		10			205
Class E	––			––		––	*		1
Class I	––			––		30			657
Class Y	––			––		3			55
Advisor Class	––			––		––	*		6
Shares redeemed:
Class A	(1,346	)		(26,885	)	(2,351	)		(46,884	)
Class B	(71	)		(1,374	)	(157	)		(2,991	)
Class C	(160	)		(3,123	)	(261	)		(5,039	)
Class E	––			––		––			––
Class I	(83	)		(1,651	)	(458	)		(9,025	)
Class Y	(23	)		(471	)	(34	)		(709	)
Advisor Class	(32	)		(701	)	(14	)		(271	)
Net decrease	(686	)	$	(13,386	)	(481	)	$	(7,534	)
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Global Bond Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	4,357		$	45,076		7,652		$	76,626
Class B	117			1,214		199			1,996
Class C	1,417			14,626		2,605			26,083
Class I	524			5,440		1,066			10,673
Class Y	710			7,293		777			7,775
Shares issued in reinvestment of distributions to shareholders:
Class A	136			1,403		159			1,598
Class B	4			43		13			128
Class C	35			359		40			403
Class I	13			134		23			226
Class Y	18			182		29			287
Shares redeemed:
Class A	(1,751	)		(18,095	)	(2,611	)		(26,185	)
Class B	(46	)		(478	)	(304	)		(3,055	)
Class C	(440	)		(4,544	)	(760	)		(7,636	)
Class I	(224	)		(2,307	)	(313	)		(3,166	)
Class Y	(644	)		(6,680	)	(343	)		(3,436	)
Net increase	4,226		$	43,666		8,232		$	82,317

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy High Income Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	27,931		$	231,630		65,702		$	507,400
Class B	1,536			12,770		2,587			20,074
Class C	12,060			100,093		26,349			203,986
Class E	75			625		123			972
Class I	11,029			91,569		27,082			208,462
Class Y	8,266			68,569		16,318			125,174
Shares issued in reinvestment of distributions to shareholders:
Class A	2,834			23,504		5,619			44,818
Class B	92			766		173			1,384
Class C	780			6,468		1,430			11,456
Class E	12			99		22			175
Class I	433			3,594		569			4,585
Class Y	470			3,900		938			7,509
Shares redeemed:
Class A	(18,053	)		(149,325	)	(28,422	)		(227,057	)
Class B	(493	)		(4,098	)	(631	)		(5,009	)
Class C	(5,503	)		(45,492	)	(5,980	)		(48,108	)
Class E	(23	)		(193	)	(32	)		(262	)
Class I	(6,505	)		(53,797	)	(5,122	)		(41,380	)
Class Y	(5,342	)		(44,213	)	(10,684	)		(82,973	)
Net increase	29,599		$	246,469		96,041		$	731,206

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy International Balanced Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	1,642		$	21,796		3,260		$	41,062
Class B	40			533		90			1,146
Class C	79			1,047		260			3,307
Class E	9			118		25			323
Class I	145			1,963		721			9,104
Class Y	24			329		362			4,703
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		22			256
Class B	––			––		––	*		2
Class C	––			––		2			26
Class E	––			––		––	*		2
Class I	––			––		8			91
Class Y	––			––		––	*		3
Shares redeemed:
Class A	(1,709	)		(22,662	)	(3,217	)		(40,021	)
Class B	(72	)		(942	)	(168	)		(2,025	)
Class C	(307	)		(4,042	)	(567	)		(6,935	)
Class E	(6	)		(73	)	(8	)		(103	)
Class I	(777	)		(10,068	)	(1,033	)		(12,549	)
Class Y	(41	)		(528	)	(78	)		(953	)
Net decrease	(973	)	$	(12,529	)	(321	)	$	(2,561	)

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy International Core Equity Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	8,607		$	123,800		18,511		$	256,235
Class B	171			2,295		627			7,896
Class C	1,481			19,440		3,583			45,934
Class E	23			330		59			815
Class I	6,508			92,532		3,516			48,872
Class Y	1,740			24,451		7,780			106,435
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		159			2,319
Class B	––			––		1			17
Class C	––			––		15			196
Class E	––			––		1			14
Class I	––			––		52			753
Class Y	––			––		66			972
Shares redeemed:
Class A	(5,089	)		(71,438	)	(5,738	)		(77,394	)
Class B	(217	)		(2,806	)	(231	)		(2,809	)
Class C	(793	)		(10,179	)	(737	)		(9,156	)
Class E	(7	)		(104	)	(11	)		(151	)
Class I	(1,926	)		(27,014	)	(710	)		(9,820	)
Class Y	(1,798	)		(25,039	)	(3,091	)		(43,629	)
Net increase	8,700		$	126,268		23,852		$	327,499
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy International Growth Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	377		$	10,404		620		$	16,344
Class B	12			313		23			548
Class C	24			619		67			1,586
Class E	––			––		––			––
Class I	52			1,464		546			14,284
Class Y	13			373		29			769
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		30			845
Class B	––			––		––	*		7
Class C	––			––		3			71
Class E	––			––		––	*		1
Class I	––			––		14			383
Class Y	––			––		1			32
Shares redeemed:
Class A	(418	)		(11,587	)	(700	)		(18,278	)
Class B	(29	)		(734	)	(66	)		(1,520	)
Class C	(114	)		(2,878	)	(223	)		(5,270	)
Class E	––			––		––			––
Class I	(656	)		(17,595	)	(88	)		(2,370	)
Class Y	(18	)		(490	)	(16	)		(425	)
Net increase (decrease)	(757	)	$	(20,111	)	240		$	7,007

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Large Cap Growth Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	5,938		$	67,262		13,786		$	143,201
Class B	105			1,046		333			3,149
Class C	412			4,333		1,745			16,741
Class E	11			129		34			367
Class I	4,155			48,341		17,360			173,901
Class R	351			3,906		925			9,879
Class Y	1,084			12,436		4,828			51,418
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		141			1,575
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––	*		4
Class I	––			––		45			511
Class R	––			––		1			10
Class Y	––			––		42			475
Shares redeemed:
Class A	(6,089	)		(69,173	)	(13,222	)		(140,214	)
Class B	(142	)		(1,431	)	(386	)		(3,620	)
Class C	(660	)		(6,896	)	(1,264	)		(12,158	)
Class E	(3	)		(39	)	(10	)		(112	)
Class I	(11,507	)		(134,162	)	(6,574	)		(70,838	)
Class R	(202	)		(2,254	)	(276	)		(2,936	)
Class Y	(1,219	)		(14,120	)	(4,435	)		(45,345	)
Net increase (decrease)	(7,766	)	$	(90,622	)	13,073		$	126,008
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Limited-Term Bond Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	32,077		$	358,193		42,141		$	463,701
Class B	871			9,714		827			9,089
Class C	8,911			99,412		13,521			148,677
Class E	52			577		28			309
Class I	3,570			39,910		4,648			50,926
Class Y	3,071			34,270		7,173			78,684
Shares issued in reinvestment of distributions to shareholders:
Class A	670			7,492		1,086			11,958
Class B	12			139		32			353
Class C	133			1,489		269			2,957
Class E	1			7		––	*		4
Class I	38			421		42			467
Class Y	60			667		114			1,261
Shares redeemed:
Class A	(15,476	)		(172,811	)	(18,604	)		(204,295	)
Class B	(370	)		(4,129	)	(849	)		(9,315	)
Class C	(4,697	)		(52,401	)	(9,100	)		(99,835	)
Class E	(4	)		(44	)	(11	)		(123	)
Class I	(1,156	)		(12,899	)	(1,878	)		(20,690	)
Class Y	(1,843	)		(20,588	)	(5,585	)		(61,198	)
Net increase	25,920		$	289,419		33,854		$	372,930

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Managed European/Pacific Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	1,662		$	12,685		3,910		$	27,875
Class B	20			155		85			589
Class C	17			130		119			843
Class E	––			––		––			––
Class I	1			9		3			21
Class Y	3			25		97			624
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		14			108
Class B	––			––		––			––
Class C	––			––		––	*		––	*
Class E	––			––		––	*		––	*
Class I	––			––		––	*		––	*
Class Y	––			––		––	*		2
Shares redeemed:
Class A	(1,594	)		(12,029	)	(2,273	)		(15,908	)
Class B	(24	)		(183	)	(37	)		(254	)
Class C	(61	)		(457	)	(73	)		(526	)
Class E	––			––		––			––
Class I	––			––		(1	)		(12	)
Class Y	(4	)		(33	)	(90	)		(639	)
Net increase	20		$	302		1,754		$	12,723
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Managed International Opportunities Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	2,871		$	23,478		6,283		$	48,593
Class B	35			284		117			893
Class C	59			482		182			1,409
Class E	––			––		––			––
Class I	––			––		––	*		1
Class Y	13			107		8			66
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		72			602
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––	*		1
Class I	––			––		––	*		1
Class Y	––			––		––	*		2
Shares redeemed:
Class A	(2,534	)		(20,456	)	(3,338	)		(25,591	)
Class B	(80	)		(645	)	(110	)		(823	)
Class C	(82	)		(662	)	(96	)		(726	)
Class E	––			––		––			––
Class I	––	*		(1	)	––			––
Class Y	(5	)		(41	)	(14	)		(98	)
Net increase	277		$	2,546		3,104		$	24,330

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Micro Cap Growth Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	1,498		$	23,386		1,940		$	26,246
Class B	21			315		29			379
Class C	69			1,082		92			1,236
Class I	37			585		49			708
Class Y	23			366		1			21
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		38			513
Class B	––			––		1			9
Class C	––			––		2			21
Class I	––			––		1			11
Class Y	––			––		––	*		4
Shares redeemed:
Class A	(439	)		(6,713	)	(560	)		(7,781	)
Class B	(6	)		(93	)	(17	)		(230	)
Class C	(27	)		(399	)	(26	)		(363	)
Class I	(18	)		(267	)	(32	)		(455	)
Class Y	(1	)		(14	)	(12	)		(168	)
Net increase	1,157		$	18,248		1,506		$	20,151
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Mid Cap Growth Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	4,011		$	56,680		5,196		$	62,415
Class B	91			1,153		140			1,548
Class C	870			11,403		823			9,532
Class E	26			369		51			617
Class I	748			10,813		448			5,814
Class R	317			4,396		355			4,524
Class Y	3,056			43,253		3,890			48,608
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		––			––
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––			––
Class I	––			––		––			––
Class R	––			––		––			––
Class Y	––			––		––			––
Shares redeemed:
Class A	(1,565	)		(21,734	)	(2,393	)		(28,713	)
Class B	(73	)		(918	)	(169	)		(1,800	)
Class C	(164	)		(2,115	)	(230	)		(2,583	)
Class E	(4	)		(53	)	(4	)		(45	)
Class I	(173	)		(2,507	)	(64	)		(842	)
Class R	(58	)		(813	)	(45	)		(573	)
Class Y	(656	)		(9,244	)	(1,109	)		(13,137	)
Net increase	6,426		$	90,683		6,889		$	85,365

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Money Market Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	97,183		$	97,183		263,350		$	263,350
Class B	3,553			3,553		4,252			4,252
Class C	27,915			27,915		37,357			37,357
Class E	1,067			1,067		1,686			1,686
Shares issued in reinvestment of distributions to shareholders:
Class A	15			15		1,071			1,071
Class B	1			1		20			20
Class C	4			4		91			91
Class E	––	*		––	*	21			21
Shares redeemed:
Class A	(108,583	)		(108,583	)	(288,167	)		(288,167	)
Class B	(3,432	)		(3,432	)	(14,350	)		(14,350	)
Class C	(23,036	)		(23,036	)	(89,259	)		(89,259	)
Class E	(1,132	)		(1,132	)	(2,651	)		(2,651	)
Net decrease	(6,445	)	$	(6,445	)	(86,579	)	$	(86,579	)
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Mortgage Securities Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	1,625		$	13,642		3,652		$	29,389
Class B	18			151		34			275
Class C	217			1,821		178			1,438
Class E	3			25		3			22
Class I	33			275		77			610
Class Y	27			225		59			468
Shares issued in reinvestment of distributions to shareholders:
Class A	251			2,116		709			5,670
Class B	5			42		17			136
Class C	10			88		32			255
Class E	1			5		2			14
Class I	––	*		4		1			10
Class Y	3			27		15			120
Shares redeemed:
Class A	(5,656	)		(47,852	)	(5,793	)		(46,080	)
Class B	(62	)		(523	)	(222	)		(1,755	)
Class C	(190	)		(1,599	)	(562	)		(4,466	)
Class E	(3	)		(28	)	(3	)		(28	)
Class I	(6	)		(46	)	(45	)		(362	)
Class Y	(23	)		(190	)	(365	)		(2,926	)
Net decrease	(3,747	)	$	(31,817	)	(2,211	)	$	(17,210	)

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Municipal Bond Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	1,933		$	21,998		1,779		$	19,460
Class B	61			695		37			407
Class C	440			5,001		617			6,770
Class I	9			97		36			400
Class Y	12			140		39			440
Shares issued in reinvestment of distributions to shareholders:
Class A	81			924		135			1,488
Class B	1			11		2			20
Class C	21			240		45			491
Class I	––	*		3		––	*		7
Class Y	––	*		3		1			8
Shares redeemed:
Class A	(568	)		(6,456	)	(1,026	)		(11,225	)
Class B	(36	)		(402	)	(38	)		(413	)
Class C	(167	)		(1,901	)	(657	)		(7,211	)
Class I	––	*		––	*	––			––
Class Y	(3	)		(40	)	––	*		––	*
Net increase	1,784		$	20,313		970		$	10,642
*Not shown due to rounding.

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Municipal High Income Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	20,225		$	100,929		5,391		$	25,356
Class B	523			2,593		409			1,790
Class C	9,086			45,293		1,829			8,434
Class I	15,424			76,917		1,699			8,112
Class Y	375			1,876		491			2,219
Shares issued in reinvestment of distributions to shareholders:
Class A	164			821		64			303
Class B	4			19		11			53
Class C	47			236		26			121
Class I	105			528		22			104
Class Y	5			24		7			32
Shares redeemed:
Class A	(2,409	)		(11,951	)	(342	)		(1,637	)
Class B	(286	)		(1,422	)	(54	)		(257	)
Class C	(424	)		(2,102	)	(149	)		(702	)
Class I	(922	)		(4,572	)	(1,211	)		(5,322	)
Class Y	(229	)		(1,137	)	(240	)		(1,036	)
Net increase	41,688		$	208,052		7,953		$	37,570

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Pacific Opportunities Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	4,971		$	73,044		17,506		$	233,164
Class B	76			987		504			5,836
Class C	175			2,312		1,527			18,246
Class E	––			––		––			––
Class I	2,432			36,048		2,633			36,542
Class Y	77			1,178		421			5,577
Advisor Class	––			––		––			––
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		––			––
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––			––
Class I	––			––		––			––
Class Y	––			––		––			––
Advisor Class	––			––		––			––
Shares redeemed:
Class A	(5,131	)		(74,676	)	(9,929	)		(135,419	)
Class B	(221	)		(2,845	)	(499	)		(5,991	)
Class C	(465	)		(6,017	)	(835	)		(10,330	)
Class E	––			––		––			––
Class I	(392	)		(5,747	)	(758	)		(10,791	)
Class Y	(146	)		(2,176	)	(232	)		(3,252	)
Advisor Class	(5	)		(78	)	––			––
Net increase	1,371		$	22,030		10,338		$	133,582

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Small Cap Growth Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	3,927		$	45,158		5,704		$	54,382
Class B	75			766		272			2,259
Class C	882			9,306		1,638			14,520
Class E	24			278		50			490
Class I	2,488			32,684		434			4,946
Class R	342			3,940		415			4,046
Class Y	2,211			28,582		2,552			27,445
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		––			––
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––			––
Class I	––			––		––			––
Class R	––			––		––			––
Class Y	––			––		––			––
Shares redeemed:
Class A	(1,988	)		(22,670	)	(3,403	)		(32,667	)
Class B	(133	)		(1,361	)	(363	)		(3,113	)
Class C	(1,336	)		(14,052	)	(2,580	)		(22,772	)
Class E	(5	)		(61	)	(9	)		(89	)
Class I	(412	)		(5,266	)	(361	)		(4,129	)
Class R	(145	)		(1,688	)	(99	)		(999	)
Class Y	(2,299	)		(29,568	)	(1,778	)		(18,346	)
Net increase	3,631		$	46,048		2,472		$	25,973

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Small Cap Value Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	2,445		$	35,766		5,773		$	74,204
Class B	34			461		190			2,416
Class C	222			3,133		469			5,715
Class E	––			––		––			––
Class I	27			403		149			2,019
Class Y	250			3,736		1,495			18,256
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		––			––
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––			––
Class I	––			––		––			––
Class Y	––			––		––			––
Shares redeemed:
Class A	(2,629	)		(37,880	)	(2,991	)		(37,836	)
Class B	(149	)		(1,986	)	(109	)		(1,272	)
Class C	(210	)		(2,859	)	(177	)		(2,088	)
Class E	––			––		––			––
Class I	(27	)		(402	)	(96	)		(1,332	)
Class Y	(201	)		(2,939	)	(1,054	)		(13,856	)
Net increase (decrease)	(238	)	$	(2,567	)	3,649		$	46,226

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Tax-Managed Equity Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	230		$	2,354		281		$	2,779
Class B	1			7		58			509
Class C	5			51		60			534
Class I	––	*		5		37			329
Class Y	5			54		87			800
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		––			––
Class B	––			––		––			––
Class C	––			––		––			––
Class I	––			––		––			––
Class Y	––			––		––			––
Shares redeemed:
Class A	(33	)		(332	)	(21	)		(210	)
Class B	––			––		(14	)		(133	)
Class C	(1	)		(10	)	(14	)		(133	)
Class I	––	*		(6	)	––	*		(1	)
Class Y	––			––		(46	)		(436	)
Net increase	207		$	2,123		428		$	4,038

	Six months ended 9-30-10					Fiscal year ended 3-31-10
Ivy Value Fund	Shares		Value			Shares		Value
Shares issued from sale of shares:
Class A	949		$	14,115		1,241		$	17,054
Class B	15			211		45			601
Class C	73			1,087		206			2,847
Class E	––			––		––			––
Class I	47			707		11			145
Class Y	43			638		18			226
Shares issued in reinvestment of distributions to shareholders:
Class A	––			––		11			143
Class B	––			––		––			––
Class C	––			––		––			––
Class E	––			––		––	*		1
Class I	––			––		––	*		1
Class Y	––			––		––	*		2
Shares redeemed:
Class A	(536	)		(8,040	)	(1,045	)		(13,932	)
Class B	(22	)		(319	)	(75	)		(956	)
Class C	(39	)		(573	)	(83	)		(1,091	)
Class E	––			––		––			––
Class I	(11	)		(160	)	(2	)		(24	)
Class Y	(5	)		(75	)	(9	)		(123	)
Net increase	514		$	7,591		318		$	4,894
*Not shown due to rounding.

7. DERIVATIVE INSTRUMENTS

The following disclosures contain information on why and how the Funds use derivative instruments, the associated risks of investing in derivative instruments, and how derivative instruments affect the Funds' financial position and results of operations when presented by primary underlying risk exposure.

Forward Foreign Currency Contracts. Certain Funds may enter into forward foreign currency contracts (forward contracts) for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Schedule of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the NYSE as provided by a bank, dealer or independent pricing service. The resulting unrealized appreciation and depreciation is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations.

Risks to a Fund related to the use of such contracts include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, a Fund's maximum loss will consist of the aggregate unrealized gain on appreciated contracts.

Futures Contracts. Certain Funds may engage in buying and selling futures contracts. Upon entering into a futures contract, the Fund is required to deposit, in a segregated account, an amount equal to a varying specified percentage of the contract amount. This amount is known as the initial margin. Subsequent payments (variation margins) are made or received by the Fund each day, dependent on the daily fluctuations in the value of the underlying debt security or index.

Futures contracts are reported on a schedule following the Schedule of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are identified in the Schedule of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation (depreciation) is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts.

Risks of entering into futures contracts include the possibility of loss of securities or cash held as collateral, that there may be an illiquid market where the Fund is unable to close the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund's securities.

Swap Agreements. Certain Funds may invest in swap agreements.

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. A 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. A 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. The maximum loss a Fund may incur consists of the aggregate unrealized gain on appreciated contracts.

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

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

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

Collateral. A Fund may mitigate counterparty risk through credit support annexes (CSA) included with an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement which is the standard contract governing most derivative transactions between the Fund and each of its counterparties. The CSA allows the Fund and its counterparty to offset certain derivative financial instruments' payables and/or receivables with collateral, which is generally held by the Fund's custodian. The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts specified in the CSA. To the extent amounts due to the Fund from its counterparties are not fully collateralized contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. See Note 1 "Segregation and Collateralization" for additional information with respect to collateral practices.

Objectives and Strategies

Ivy Bond Fund. The Fund's objective in using derivatives during the period was to adjust the overall duration of the portfolio. To achieve this objective, the Fund primarily utilized Treasury futures contracts of varying lengths to either shorten or lengthen the duration of the Fund, as determined by the Fund's subadvisor.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Interest rate	N/A	$0	Unrealized depreciation on      futures contracts*	$173
*The fair value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected in the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable (payable) as of September 30, 2010.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Interest rate	Net realized gain (loss) on futures      contracts/Net change in      unrealized appreciation      (depreciation) on futures      contracts	$(188)	$(18)

During the fiscal period ended September 30, 2010, the Fund's average market value outstanding for short futures contracts and long futures contracts was $4,845 and $9,189, respectively.

Ivy Capital Appreciation Fund. The Fund's objective in using derivatives during the period was to enhance the performance of the Fund by adding premium income from written options. To achieve this objective, the Fund had written primarily deep out of the money calls and puts on individual domestic equity securities.

There were no open derivative instruments as of September 30, 2010.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on      written options/Net change in      unrealized appreciation      (depreciation) on written      options	$(51)	$421

During the fiscal period ended September 30, 2010, the Fund's average number of written option contracts outstanding was less than 1.

Ivy Cundill Global Value Fund. The Fund's objective in using derivatives during the period was to hedge the exposure to foreign currencies of securities held in the Fund. To achieve this objective, the Fund utilized forward contracts.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Foreign currency	Unrealized appreciation on forward      foreign currency contracts	$293	Unrealized depreciation on forward      foreign currency contracts	$2,755

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Foreign currency	Net realized gain (loss) on      forward foreign currency      contracts/Net change in      unrealized appreciation      (depreciation) on forward      foreign currency contracts	$5,832	$(7,664)

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding for short forward contracts and long forward contracts was $104,991 and $107,092, respectively.

Ivy European Opportunities Fund. The Fund's objective in using derivatives during the period was to manage the exposure to various foreign currencies and to hedge market risk on equity securities. To manage foreign currency exposure, the Fund utilized forward contracts to either increase or decrease exposure to a given currency. To achieve the objective of hedging market risk, the Fund utilized futures on foreign equity indices.

There were no open derivative instruments as of September 30, 2010.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations			Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on      investments in futures contracts		$	668	$	0
Foreign currency	Net realized gain (loss) on forward      foreign currency contracts/      Net change in unrealized      appreciation (depreciation) on      forward foreign currency      contracts			4,396		(183	)
Total			$	5,064	$	(183	)

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding for short forward contracts and long forward contracts was $29,148 and $29,417, respectively. Additionally, the Fund's average market value outstanding for short futures contracts was $4,507.

Ivy Global Bond Fund. The Fund's objective in using derivatives during the period was to manage the exposure to various foreign currencies. To achieve this objective, the Fund utilized forward contracts to either hedge a position held by the Fund, to gain exposure to a currency where a foreign bond is not available, or to take a fundamental position long or short in a particular currency.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Foreign currency	Unrealized appreciation on forward      foreign currency contracts	$46	Unrealized depreciation on forward      foreign currency contracts	$607

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Foreign currency	Net realized gain (loss) on      forward foreign currency      contracts/Net change in      unrealized appreciation      (depreciation) on forward      foreign currency contracts	$216	$(300)

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding for short forward contracts and long forward contracts was $15,418 and $15,130, respectively.

Ivy High Income Fund. The Fund's objective in using derivatives during the period was to hedge the exposure to foreign currencies of securities held in the Fund. To achieve this objective, the Fund utilized forward contracts.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Foreign currency	Unrealized appreciation on forward      foreign currency contracts	$522	Unrealized depreciation on forward      foreign currency contracts	$169

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Foreign currency	Net realized gain (loss) on      forward foreign currency      contracts/Net change in      unrealized appreciation      (depreciation) on forward      foreign currency contracts	$16	$(163)

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding for short forward contracts and long forward contracts was $8,950 and $9,603, respectively

Ivy International Balanced Fund. The Fund's objective in using derivatives during the period was to manage the exposure to various foreign currencies. To achieve this objective, the Fund utilized forward contracts to either increase or decrease exposure to a given currency.

There were no open derivative instruments as of September 30, 2010.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Foreign currency	Net realized gain (loss) on      forward foreign currency      contracts/Net change in      unrealized appreciation      (depreciation) on forward      foreign currency contracts	$1,721	$(538)

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding for short forward contracts and long forward contracts was $25,620 and $25,942, respectively.

Ivy International Growth Fund. The Fund's objective in using derivatives during the period was to manage the exposure to various foreign currencies and gain exposure to certain individual securities that are not available for direct purchase. To manage foreign currency exposure, the Fund utilized forward contracts to either increase or decrease exposure to a given currency. To gain exposure to certain individual securities, the Fund utilized total return swaps.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Equity	Unrealized appreciation on      swap agreements	$1,161	N/A	$0

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations			Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on      investments in swap      agreements/Net change in      unrealized appreciation      (depreciation) on swap      agreements		$	149	$	1,161
Foreign currency	Net realized gain (loss) on forward      foreign currency contracts/      Net change in unrealized      appreciation (depreciation) on      forward foreign currency      contracts			1,823		(1,554	)
Total			$	1,972	$	(393	)

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding for short forward contracts and long forward contracts was $32,391 and $33,036, respectively. Additionally, the Fund's average number of swap contracts outstanding was 722.

Ivy Mid Cap Growth Fund. The Fund's objectives to using derivatives during the period was to both gain exposure to certain sectors and to hedge certain event risks on positions held by the Fund. To achieve these objectives, the Fund utilized options, both written and purchased, on either an index or on individual or baskets of equity securities.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Equity	N/A	$0	Written options at market value	$104

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on      investments in unaffiliated      securities and written options/      Net change in unrealized      appreciation (depreciation)      on written options	$(254)	$188

During the fiscal period ended September 30, 2010, the Fund's average number of purchased option contracts and written option contracts outstanding was 1 and 1, respectively.

Ivy Mortgage Securities Fund. The Fund's objective in using derivatives during the period was to adjust the overall duration of the portfolio. To achieve this objective, the Fund primarily utilized Treasury futures contracts of varying lengths to either shorten or lengthen the duration of the Fund, as determined by the Fund's subadvisor.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Interest rate	Unrealized appreciation on      futures contracts*	$1	Unrealized depreciation on      futures contracts*	$102
*The fair value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected in the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable (payable) as of September 30, 2010.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Interest rate	Net realized gain (loss) on      futures contracts/Net change      in unrealized appreciation      (depreciation) on futures      contracts	$(492)	$(68)

During the fiscal period ended September 30, 2010, the Fund's average market value outstanding for short futures contracts was $4,042.

Ivy Pacific Opportunities Fund. The Fund's objective in using derivatives during the period was to manage the exposure to various foreign currencies. To achieve this objective, the Fund utilized forward contracts to either increase or decrease exposure to a given currency.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Foreign currency	N/A	$0	Unrealized depreciation on      forward foreign currency      contracts	$1,467

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Foreign currency	Net realized gain (loss) on      forward foreign currency      contracts/Net change in      unrealized appreciation      (depreciation) on forward      foreign currency contracts	$(902)	$(3,219)

During the fiscal period ended September 30, 2010, the Fund's average principal amount outstanding for forward contracts were as follows: short forward contracts - $46,963, long forward contracts - $46,520.

Ivy Small Cap Growth Fund. The Fund's objectives in using derivatives during the period included hedging market risk on equity securities and increasing exposure to various equity markets. To achieve these objectives, the Fund utilized futures on domestic equity indices.

There were no open derivative instruments as of September 30, 2010.

The effect of derivative instruments on the Statement of Operations for fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on      futures contracts	$(162)	$0

During the fiscal period ended September 30, 2010, the Fund's average market value outstanding for long futures contracts was $5,094.

Ivy Small Cap Value Fund. The Fund's objectives in using derivatives during the period included hedging market risk on equity securities, generating additional income from written option premiums, and gaining exposure to or facilitate trading in certain securities. To achieve the objective of hedging market risk, the Fund utilized futures on domestic equity indices. To achieve the objective of generating additional income and gaining exposure to certain securities, the Fund utilized written options on individual equity securities.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Equity	N/A	$0	Written options at market value	$215

The effect of derivative instruments on the Statement of Operations for fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on      written options and futures      contracts/Net change in      unrealized appreciation      (depreciation) on written      options	$(2,991)	$(53)

During the fiscal period ended September 30, 2010, the Fund's average market value outstanding for short futures contracts was $6,532. Additionally, the Fund's average number of written option contracts outstanding was 3.

Ivy Value Fund. The Fund's objectives in using derivatives during the period included hedging market risk on equity securities, generating additional income from written option premiums, and gaining exposure to, or facilitate trading in, certain securities. To achieve the objective of hedging market risk, the Fund utilized futures on domestic equity indices. To achieve the objective of generating additional income and gaining exposure to certain securities, the Fund utilized options, both written and purchased, on individual equity securities.

Fair values of derivative instruments as of September 30, 2010:

	Asset Derivatives		Liability Derivatives
Type of Risk Exposure	Statement of Assets and      Liabilities Location	Fair Value	Statement of Assets and      Liabilities Location	Fair Value
Equity	N/A	$0	Written options at market value	$144

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2010:

Type of Risk Exposure	Location of Gain (Loss) on      Derivatives Recognized in      the Statement of      Operations	Realized Gain (Loss) on Derivatives Recognized in the Statement of Operations	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations
Equity	Net realized gain (loss) on      investments in unaffiliated      securities, written options      and futures contracts/      Net change in unrealized      appreciation (depreciation)      on written options	$(238)	$(78)

During the fiscal period ended September 30, 2010, the Fund's average market value outstanding for short futures contracts was $1,610. Additionally, the Fund's average number of purchased option contracts and written option contracts outstanding was 1 and 1, respectively.

8. COMMITMENT

In connection with Ivy Pacific Opportunities Fund's investment in Vietnam Azalea Fund Limited (VAF), the Fund is contractually committed to provide additional capital of up to $1,696 if and when VAF requests such contributions or draw downs. The total commitment is limited to $5,000. At September 30, 2010, Ivy Pacific Opportunities Fund had made a total contribution of $3,304. No public market currently exists for the shares of VAF nor are the shares listed on any securities exchange. VAF intends to become listed within one year after the final commitment has been drawn down. VAF's investment strategy is to make minority investments in future blue-chip Vietnamese companies that are already listed or intend to be listed in the next 24 months.

9. AFFILIATED COMPANY TRANSACTIONS

A summary of the transactions in affiliated companies during the fiscal period ended September 30, 2010 follows:

	3-31-10 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/(Loss)(2)			Distributions Received			9-30-10 Share Balance		9-30-10 Market Value
Ivy Managed European/Pacific Fund
Ivy European Opportunities      Fund, Class I		745	$	698	$	1,254	$	(544	)		$	––		743		$	16,435
Ivy Pacific Opportunities      Fund, Class I(1)		4,196		2,792		4,194		(1,356	)			––		4,186			67,978
											$	––				$	84,413

	3-31-10 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/(Loss)(2)			Distributions Received			9-30-10 Share Balance		9-30-10 Market Value
Ivy Managed International Opportunities Fund
Ivy European Opportunities      Fund, Class I		739	$	1,375	$	1,057	$	(563	)		$	––		782		$	17,306
Ivy International Balanced      Fund, Class I(1)		2,920		1,636		11,495		(2,646	)			––		2,355			34,172
Ivy International Core Equity      Fund, Class I		2,734		1,636		11,826		(3,286	)			––		2,222			34,378
Ivy International Growth      Fund, Class I		1,116		1,166		21,343		(5,390	)			––		564			17,119
Ivy Pacific Opportunities      Fund, Class I(1)		2,079		31,488		1,996		(614	)			––		4,116			66,851
											$	––				$	169,826

	3-31-10 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/(Loss)		Distributions Received			9-30-10 Share Balance		9-30-10 Market Value
Ivy Pacific Opportunities Fund
Vietnam Azalea      Fund Limited(1)		500	$	––	$	––	$	––		$	––		500		$2,170
(1)No dividends were paid during the preceding 12 months.
(2)Included in Realized Gain/Loss, if applicable, are distributions from capital gains from the underlying securities.

10. WRITTEN OPTION ACTIVITY

For Ivy Capital Appreciation Fund, transactions in written call options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		1			$	73
Options written		––				––
Options terminated in closing purchase transactions		––	*			(17	)
Options exercised		(1	)			(35	)
Options expired		––	*			(21	)
Outstanding at September 30, 2010		––			$	––

For Ivy Capital Appreciation Fund, transactions in written put options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		––	*		$	23
Options written		––				––
Options terminated in closing purchase transactions		––	*			(23	)
Options exercised		––				––
Options expired		––				––
Outstanding at September 30, 2010		––			$	––

For Ivy Mid Cap Growth Fund, transactions in written call options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		1			$	52
Options written		3				215
Options terminated in closing purchase transactions		(2	)			(114	)
Options exercised		––				––
Options expired		––				––
Outstanding at September 30, 2010		2			$	153
*Not shown due to rounding.

For Ivy Mid Cap Growth Fund, transactions in written put options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		––			$	––
Options written		6				212
Options terminated in closing purchase transactions		(6	)			(212	)
Options exercised		––				––
Options expired		––				––
Outstanding at September 30, 2010		––			$	––

For Ivy Small Cap Value Fund, transactions in written call options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		––			$	––
Options written		9				362
Options terminated in closing purchase transactions		(3	)			(100	)
Options exercised		(1	)			(36	)
Options expired		(2	)			(96	)
Outstanding at September 30, 2010		3			$	130

For Ivy Small Cap Value Fund, transactions in written put options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		––			$	––
Options written		5				283
Options terminated in closing purchase transactions		––				––
Options exercised		(3	)			(190	)
Options expired		(1	)			(60	)
Outstanding at September 30, 2010		1			$	33

For Ivy Value Fund, transactions in written call options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		1			$	51
Options written		1				98
Options terminated in closing purchase transactions		––	*			(11	)
Options exercised		––				––
Options expired		(1	)			(57	)
Outstanding at September 30, 2010		1			$	81

For Ivy Value Fund, transactions in written put options were as follows:
	Number of Contracts			Premium Received
Outstanding at March 31, 2010		1			$	67
Options written		2				122
Options terminated in closing purchase transactions		(1	)			(76	)
Options exercised		––	*			(12	)
Options expired		(1	)			(75	)
Outstanding at September 30, 2010		1			$	26
*Not shown due to rounding.

11. PENDING REORGANIZATION

A special meeting of shareholders of Ivy Mortgage Securities Fund is scheduled to be held on November 23, 2010. The proposal that will be considered and acted upon at the meeting is whether to approve an Agreement and Plan of Reorganization providing for the transfer of all of the assets of Ivy Mortgage Securities Fund to, and the assumption of all of the liabilities of the Ivy Mortgage Securities Fund by, Ivy Bond Fund in exchange for shares of the Ivy Bond Fund. Shareholders of record of Ivy Mortgage Securities Fund as of the close of business on August 30, 2010 are entitled to vote at the meeting.

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENT

Ivy Funds

At a meeting of the Board of Trustees of Ivy Funds (the "Trust") held on August 24 and 25, 2010, the Trustees, including all of the Trustees who are not "interested persons," as defined in Section 2(a)(19) of the 1940 Act, unanimously approved the continuance of the Investment Management Agreement between Ivy Investment Management Company ("IICO") and the Trust and the continuance of the Investment Subadvisory Agreements between IICO and:

• Advantus Capital Management, Inc. (with respect to Ivy Bond Fund, Ivy Mortgage Securities Fund and Ivy Real Estate Securities Fund)
• Mackenzie Financial Corporation (with respect to Ivy Global Natural Resources Fund and Ivy Cundill Global Value Fund)
• Wall Street Associates (with respect to Ivy Micro Cap Growth Fund)

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

The Board's Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its review of the various agreements, including, among other things, the nature and the quality of the services provided by IICO and the Subadvisers, profitability (including any fall-out benefits) from the relationships with each series of the Trust (each a "Fund," and together, the "Funds"), economies of scale, the role played by the Independent Trustees, and information on comparative fees and expenses. The Board also considered the written responses and supplementary materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees' counsel prior to the meeting. Included in those responses, which had been provided to the B oard prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO, as well as an explanation of the methodology by which the profitability analysis was calculated. The Board also received extensive materials on performance, expenses and comparable fund information from Lipper, Inc., an independent mutual fund rating service. Finally, the Independent Trustees received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Trustees previously had reviewed these materials during a telephonic meeting earlier in August. They further reviewed these materials extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members at the August 24th and 25th Board meeting, after which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Boar d's determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to the Funds by IICO and each Subadviser, taking into account the large amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence request lists submitted on their behalf by counsel. They also considered the knowledge they had received from the regular meetings of the Board, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the other services provided to the Funds by IICO and each Subadviser (such as, managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to each Fund's investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund po licies and procedures and with applicable securities laws and regulations). The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with the Funds

The Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. The Board considered the benefits that accrue to each organization from its respective relationship with a Fund, including the fact that a variety of services are provided by affiliates of IICO, including distribution, shareholder servicing, administrative and fund accounting services. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receive any additional direct or indirect benefits that would preclude the Board from approving the continuation of an investment advisory agreement with IICO or any investment sub-advisory agreement with a Subadviser.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds' shareholders. In that context, the Board discussed the current level of the Funds' advisory fee breakpoints and also considered the current and anticipated asset levels of the Funds and the potential for growth in each Fund. The Board concluded that the Funds' asset sizes and fee structures did not warrant the restructuring or reevaluation of the fee breakpoints for the Funds at the current time.

Performance of the Funds and Costs of Services Provided

The Board considered, on a Fund by Fund basis, the performance of each Fund and the costs of the services provided. The Board focused particularly on, among other Funds, the Ivy Asset Strategy Fund, Ivy Bond Fund, Ivy Capital Appreciation Fund, Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Bond Fund, Ivy Global Natural Resources Fund and Ivy Large Cap Growth Fund. In addition, the Board considered that IICO relatively recently had assumed the day-to-day portfolio management responsibilities for the Ivy European Opportunities Fund and the Ivy International Balanced Fund, replacing those Funds' subadvisers.

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

The Board also considered the expenses of each Fund, the expense ratio of each Fund, and the expense limitation arrangements entered into by IICO in light of the services provided by IICO and each Subadviser. The Board also compared each Fund's expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to separately managed accounts in the same asset class for certain Funds. In that regard, the Board noted that IICO performs significant additional services for the Funds as compared to such separately managed accounts. 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 F unds' expense ratios, noting that, as the Funds' assets have increased over time, the expense ratios of the Funds generally have fallen. After completing this examination, the Board concluded that each Fund's expenses are appropriate at the current time.

Independent Fee Consultant Review

During August of 2010, and as part of their regularly scheduled meetings, the Disinterested Trustees of Ivy Funds (collectively, the "Ivy Funds" and any separate series thereof an "Ivy Fund") reviewed significant information in connection with considering the continuation of existing investment management agreements currently in effect between Ivy Investment Management Company ("IICO") and the Ivy Funds. Pursuant to the Assurance of Discontinuance between Waddell & Reed, Inc., Waddell & Reed Services Company ("WRSCO"), and Waddell & Reed Investment Management Company (collectively, "Waddell") and the Office of the New York Attorney General dated July 10, 2006 ("Assurance of Discontinuance"), the Disinterested Trustees 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 revi ew addressed the following fee-related factors:

1. The nature, extent 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 an Ivy Fund grows larger

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

Summary Findings

The report stated that IICO delivered strong levels of performance and service to the Ivy Funds in relation to its management fees and relative to investment advisers of comparable mutual funds. For the 36 months ended March 31, 2010, when compared to their respective peer groups established by Lipper, Inc. ("Lipper"), approximately 54% of the Ivy Funds were in the top quintile of performance and 62% of the Ivy Funds were in the top two quintiles of performance. For the one-, and five-year periods ended March 31, 2010, the report stated that 33% and 64% of the Ivy Funds were in the top two quintiles of performance, respectively. The independent fee consultant noted that the Ivy Funds' performance appeared to be grounded in a number of institutional competitive advantages at IICO, including stock selection ability, ability to attract top talent, strategic vision, performance-focused culture, ability to manage smaller AUM funds, ability to serve small account sizes and an effective trading infrastruc ture.

The report stated that for the 12 months ended March 31, 2010, the asset-weighted average expense ratios of the Ivy Funds were 2% below the mean expense ratios of comparable Lipper Expense Group peers and 16% below asset-weighted average expense ratios of funds in the Lipper Expense Universe. The management fees for the Ivy Funds on average were approximately 9% below the mean management fees for their Lipper Expense Groups and approximately 17% below the mean for their Lipper Expense Universe. The independent fee consultant noted that the Ivy Funds' small average account size introduces certain biases in the Lipper analyses that works against Ivy Funds in Lipper expense comparisons and, as a result, the Lipper findings may be considered conservative in that regard. The independent fee consultant found that within the larger Lipper averages the management fees and total expenses of individual Ivy Funds and share classes are reasonable relative to their performance.

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

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

The independent fee consultant undertook an economy of pricing analysis that showed that Ivy Funds incur lower fees and expenses with increasing fund AUM which the independent fee consultant believes should benefit Ivy Fund investors as the Ivy Funds mature.

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 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 average net assets. Where these terms are used in reference to groups of Ivy Funds, numbers expressed are usually on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending March 31, 2010.

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, 2010 are reasonable and provide adequate justification for renewal of the Ivy Funds' existing advisory agreements.

PROXY VOTING INFORMATION

Ivy Funds

Proxy Voting Guidelines

A description of the policies and procedures Ivy Funds uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 800.777.6472 and (ii) on the Securities and Exchange Commission's (SEC) website at www.sec.gov.

Proxy Voting Records

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

QUARTERLY PORTFOLIO SCHEDULE INFORMATION

Ivy Funds

Portfolio holdings can be found on the Trust's website at www.ivyfunds.com. Alternatively, a complete schedule of portfolio holdings of each Fund for the first and third quarters of each fiscal year is filed with the SEC and can be found on the Trust's Form N-Q. These holdings may be viewed 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.

TO ALL TRADITIONAL IRA PLANHOLDERS:

Ivy Funds

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

THE IVY FUNDS FAMILY

Domestic Equity Funds

Ivy Capital Appreciation Fund

Ivy Core Equity Fund

Ivy Dividend Opportunities Fund

Ivy Large Cap Growth Fund

Ivy Micro Cap Growth Fund

Ivy Mid Cap Growth Fund

Ivy Small Cap Growth Fund

Ivy Small Cap Value Fund

Ivy Tax-Managed Equity Fund

Ivy Value Fund

Global/International Funds

Ivy Cundill Global Value Fund

Ivy European Opportunities Fund

Ivy International Balanced Fund

Ivy International Core Equity Fund

Ivy International Growth Fund

Ivy Managed European/Pacific Fund

Ivy Managed International Opportunities Fund

Ivy Pacific Opportunities Fund

Specialty Funds

Ivy Asset Strategy Fund

Ivy Asset Strategy New Opportunities Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Global Natural Resources Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

Fixed Income Funds

Ivy Bond Fund

Ivy Global Bond Fund

Ivy High Income Fund

Ivy Limited-Term Bond Fund

Ivy Money Market Fund

Ivy Mortgage Securities Fund

Ivy Municipal Bond Fund

Ivy Municipal High Income 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, or summary prospectus, carefully before investing.

SEMIAN-IVYFUNDS (9-10)

ITEM 2. CODE OF ETHICS

Required in annual report only.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Required in annual report only.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Required in annual report only.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

See Item 1 Shareholder Report.

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

MANAGEMENT INVESTMENT COMPANIES

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

ITEM 11. CONTROLS AND PROCEDURES.

(a)

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

(b)

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

ITEM 12. EXHIBITS.

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

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

Attached hereto as Exhibit 99.CERT.

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

Attached hereto as Exhibit 99.906CERT.

SIGNATURES

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

Ivy Funds
(Registrant)

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

Date: December 6, 2010

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 6, 2010

By	/s/Joseph W. Kauten
	Joseph W. Kauten, Vice President and Principal Financial Officer

Date: December 6, 2010

EX-99.CERT

EXHIBIT 99.CERT

CERTIFICATION

I, Henry J. Herrmann, certify that:

1.         I have reviewed this report on Form N-CSR of Ivy Funds;

2.         Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.         Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.         The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

         a)         Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that the material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

         b)         Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

         c)         Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

         d)         Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.         The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing equivalent functions):

         a)         All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

         b)         Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 6, 2010	/s/Henry J. Herrmann
	Henry J. Herrmann, Principal Executive Officer

CERTIFICATION

I, Joseph W. Kauten, certify that:

1.         I have reviewed this report on Form N-CSR of Ivy Funds;

2.         Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.         Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.         The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

         a)         Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that the material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

         b)         Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

         c)         Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

         d)         Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.         The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing equivalent functions):

         a)         All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

         b)         Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 6, 2010	/s/Joseph W. Kauten
	Joseph W. Kauten, Principal Financial Officer

EX-99.906CERT

EXHIBIT 99.906 CERT
CERTIFICATION UNDER SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
Henry J. Herrmann, Principal Executive Officer, and Joseph W. Kauten, Principal Financial Officer of Ivy Funds (the "Registrant"), each certify to the best of his knowledge that:
	1.	The Registrant's periodic report on Form N-CSR for the period covered by the report (the "Form N-CSR") fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended; and
	2.	The information contained in the Form N-CSR fairly represents, in all material respects, the financial condition and results of operation of the Registrant.
This certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document. A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to the Registrant and will be retained and furnished to the U.S. Securities and Exchange Commission or its staff upon request.
By	/s/Henry J. Herrmann
	Henry J. Herrmann, Principal Executive Officer
Date: December 6, 2010
By	/s/Joseph W. Kauten
	Joseph W. Kauten, Principal Financial Officer
Date: December 6, 2010