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)

Wendy J. Hills

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, 2016

ITEM 1. REPORTS TO STOCKHOLDERS.

  Semiannual Report   SEPTEMBER 30, 2016

Ticker

Class A

Class B

Class C

Class E

Class I

Class R

Class R6

Class Y

IVY FUNDS

Ivy Asset Strategy Fund

WASAX

WASBX

WASCX

IASEX

IVAEX

IASRX

IASTX

WASYX

Ivy Balanced Fund

IBNAX

IBNBX

IBNCX

IVYEX

IYBIX

IYBFX

IBARX

IBNYX

Ivy Energy Fund

IEYAX

IEYBX

IEYCX

IVEEX

IVEIX

IYEFX

IENRX

IEYYX

Ivy Global Natural Resources Fund

IGNAX

IGNBX

IGNCX

IGNEX

IGNIX

IGNRX

INRSX

IGNYX

Ivy LaSalle Global Real Estate Fund

IREAX

IREBX

IRECX

IRESX

IRERX

IREYX

Ivy LaSalle Global Risk-Managed Real Estate Fund

IVRAX

IVRBX

IVRCX

IVIRX

IVRRX

IVRYX

Ivy Real Estate Securities Fund

IRSAX

IRSBX

IRSCX

IREEX

IREIX

IRSRX

IRSEX

IRSYX

Ivy Science and Technology Fund

WSTAX

WSTBX

WSTCX

ISTEX

ISTIX

WSTRX

ISTNX

WSTYX

IVY INVESTMENTS^SM refers to the financial services offered by Ivy Distributors, Inc., a FINRA member broker dealer and the distributor of IVY FUNDS^® mutual funds, and those financial services offered by its affiliates.

CONTENTS IVY FUNDS

President’s Letter	3
Illustration of Fund Expenses	4
Portfolio Highlights and Schedule of Investments:
Ivy Asset Strategy Fund	7
Ivy Balanced Fund	14
Ivy Energy Fund	21
Ivy Global Natural Resources Fund	24
Ivy LaSalle Global Real Estate Fund	27
Ivy LaSalle Global Risk-Managed Real Estate Fund	30
Ivy Real Estate Securities Fund	33
Ivy Science and Technology Fund	35
Statements of Assets and Liabilities	39
Statements of Operations	41
Statements of Changes in Net Assets	43
Statement of Cash Flows	46
Financial Highlights	48
Notes to Financial Statements	64
Renewal of Investment Management Agreements	83
Proxy Voting Information	87
Quarterly Portfolio Schedule Information	87
IRA Disclosure	87

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.

2

PRESIDENT’S LETTER IVY FUNDS

	SEPTEMBER 30, 2016 (UNAUDITED)
Philip J. Sanders, CFA

Dear Shareholder,

Over the six months since our last report to you, the financial markets held fairly steady, despite intermittent bouts of volatility. The S&P 500 Index rebounded from turbulence created by the United Kingdom’s vote in June to leave the European Union and, in July, reached a record high, though it has dropped slightly since then.

Concerns about global economic growth, the direction of interest rates, fluctuation in oil prices and the outcome of the U.S. presidential election are all contributors to concerns about the direction of markets as we look toward the end of 2016.

While financial markets dislike the uncertainty brought on by the above issues, domestic equities have performed fairly well, and we expect moderate positive returns for 2016.

Across the six-month fiscal period, the gradual U.S. economic expansion has continued. The U.S. remains a relative bright spot in the world, supported primarily by the U.S. consumer, who is benefitting from lower energy prices, lower inflation in general and an improved labor market. Demand for cars, homes and furnishings has been healthy.

When interest rates in the U.S. will rise, and by how much, remains an area of focus, with many anticipating the Federal Reserve will raise rates in December of this year. Over the last 12 months, global economic concerns have altered the Fed’s timetable on further increases. We believe that job growth and inflation will be the most important determinants in the direction of long-term central bank policy.

Overseas, the European Central Bank and Bank of Japan are actively engaged in aggressive easing. As yet, these steps are not leading to any notable strengthening of economic activity.

China, in the face of economic softening, has turned toward more aggressive stimulus. We believe economic growth in China is likely to hold steady, which should support broader global growth.

While challenges remain, we do see potential catalysts for growth in several areas and industries and our team continues to seek investment opportunities around the globe.

Economic Snapshot

	9/30/16		3/31/16
S&P 500 Index		2,168.27		2,059.74
MSCI EAFE Index		1,701.69		1,652.04
10-Year Treasury Yield		1.60%		1.78%
U.S. unemployment rate		5.0%		5.0%
30-year fixed mortgage rate		3.42%		3.71%
Oil price per barrel	$	48.24	$	38.34

Sources: Bloomberg, U.S. Department of Labor, MBA, CME

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. It is not possible to invest directly in any of these indexes. Mortgage rates are from BankRate and reflect the overnight national average rate on a conventional 30-year fixed loan. Oil prices reflect the market price of West Texas intermediate grade crude.

Respectfully,

Philip J. Sanders, CFA

President

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

2016 SEMIANNUAL REPORT 3

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, exchange fees and account fees; and (2) ongoing costs, including management fees, distribution and service fees, and other Fund expenses. The following table 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. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six-month period ended September 30, 2016.

Actual Expenses

The first section in the following table provides information about actual account values and actual expenses for each share class. You may use the information in this section, 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 section 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 table. Fees apply to Individual Retirement Accounts (IRAs), IRA Rollovers, Roth IRAs, Conversion Roth IRAs, Simplified Employee Pension (SEP), Savings Incentive Match Plan for Employees (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 table, a customer is charged an annual fee of $18 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. With limited exceptions, for Class A and Class C shares, if your Fund

account balance is below $650 on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20. 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 following table. Additional fees have the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

The second section in the following table provides information about hypothetical account values and hypothetical expenses for each share class 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 table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), exchange fees or account fees. Therefore, the second section in the table 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.

Expenses paid may be impacted by expense reduction arrangements. If those arrangements had not been in place, expenses paid would have been higher. See Note 7 to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy Asset Strategy Fund
Class A	$	1,000	$	1,009.10	$	5.42	$	1,000	$	1,019.66	$	5.45		1.09%
Class B**	$	1,000	$	1,006.10	$	8.83	$	1,000	$	1,016.22	$	8.87		1.77%
Class C	$	1,000	$	1,005.50	$	9.02	$	1,000	$	1,016.10	$	9.07		1.80%
Class E	$	1,000	$	1,009.60	$	5.02	$	1,000	$	1,020.08	$	5.05		1.00%
Class I	$	1,000	$	1,010.40	$	4.12	$	1,000	$	1,020.96	$	4.14		0.83%
Class R	$	1,000	$	1,007.80	$	6.93	$	1,000	$	1,018.14	$	6.96		1.39%
Class R6	$	1,000	$	1,011.40	$	3.22	$	1,000	$	1,021.89	$	3.24		0.65%
Class Y	$	1,000	$	1,009.10	$	5.32	$	1,000	$	1,019.82	$	5.35		1.06%

See footnotes on page 6.

4 SEMIANNUAL REPORT 2016

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy Balanced Fund
Class A	$	1,000	$	1,045.70	$	5.73	$	1,000	$	1,019.48	$	5.65		1.12%
Class B**	$	1,000	$	1,042.00	$	9.39	$	1,000	$	1,015.84	$	9.27		1.84%
Class C	$	1,000	$	1,042.50	$	9.19	$	1,000	$	1,016.04	$	9.07		1.80%
Class E***	$	1,000	$	1,046.70	$	4.81	$	1,000	$	1,020.32	$	4.75		0.95%
Class I	$	1,000	$	1,047.40	$	4.30	$	1,000	$	1,020.82	$	4.24		0.85%
Class R	$	1,000	$	1,044.30	$	7.36	$	1,000	$	1,017.87	$	7.26		1.44%
Class R6	$	1,000	$	1,048.00	$	3.58	$	1,000	$	1,021.60	$	3.54		0.69%
Class Y	$	1,000	$	1,045.80	$	5.63	$	1,000	$	1,019.60	$	5.55		1.09%
Ivy Energy Fund
Class A	$	1,000	$	1,237.20	$	8.05	$	1,000	$	1,017.85	$	7.26		1.44%
Class B**	$	1,000	$	1,232.30	$	12.95	$	1,000	$	1,013.44	$	11.68		2.32%
Class C	$	1,000	$	1,233.10	$	11.84	$	1,000	$	1,014.42	$	10.68		2.12%
Class E***	$	1,000	$	1,239.30	$	6.72	$	1,000	$	1,019.09	$	6.06		1.19%
Class I	$	1,000	$	1,239.40	$	6.16	$	1,000	$	1,019.59	$	5.55		1.09%
Class R	$	1,000	$	1,235.70	$	9.39	$	1,000	$	1,016.64	$	8.47		1.68%
Class R6	$	1,000	$	1,240.60	$	5.27	$	1,000	$	1,020.38	$	4.75		0.93%
Class Y	$	1,000	$	1,237.80	$	7.50	$	1,000	$	1,018.34	$	6.76		1.34%
Ivy Global Natural Resources Fund
Class A	$	1,000	$	1,141.30	$	9.31	$	1,000	$	1,016.32	$	8.77		1.75%
Class B**	$	1,000	$	1,134.90	$	15.05	$	1,000	$	1,010.95	$	14.18		2.82%
Class C	$	1,000	$	1,138.40	$	12.72	$	1,000	$	1,013.21	$	11.98		2.36%
Class E	$	1,000	$	1,144.40	$	6.75	$	1,000	$	1,018.75	$	6.36		1.26%
Class I	$	1,000	$	1,144.40	$	6.54	$	1,000	$	1,018.92	$	6.16		1.22%
Class R	$	1,000	$	1,141.50	$	9.53	$	1,000	$	1,016.20	$	8.97		1.77%
Class R6	$	1,000	$	1,145.50	$	5.47	$	1,000	$	1,019.95	$	5.15		1.02%
Class Y	$	1,000	$	1,143.80	$	7.72	$	1,000	$	1,017.90	$	7.26		1.43%
Ivy LaSalle Global Real Estate Fund
Class A	$	1,000	$	1,025.60	$	7.70	$	1,000	$	1,017.51	$	7.67		1.51%
Class B**	$	1,000	$	1,019.00	$	13.43	$	1,000	$	1,011.73	$	13.38		2.66%
Class C	$	1,000	$	1,018.80	$	14.03	$	1,000	$	1,011.13	$	13.98		2.78%
Class I	$	1,000	$	1,024.50	$	8.81	$	1,000	$	1,016.41	$	8.77		1.73%
Class R	$	1,000	$	1,022.20	$	11.43	$	1,000	$	1,013.78	$	11.38		2.25%
Class Y	$	1,000	$	1,030.20	$	7.71	$	1,000	$	1,017.51	$	7.67		1.51%
Ivy LaSalle Global Risk-Managed Real Estate Fund
Class A	$	1,000	$	1,034.40	$	7.63	$	1,000	$	1,017.58	$	7.57		1.51%
Class B**	$	1,000	$	1,031.30	$	11.68	$	1,000	$	1,013.55	$	11.58		2.30%
Class C	$	1,000	$	1,031.00	$	11.68	$	1,000	$	1,013.54	$	11.58		2.28%
Class I	$	1,000	$	1,036.40	$	6.82	$	1,000	$	1,018.40	$	6.76		1.31%
Class R	$	1,000	$	1,032.40	$	9.76	$	1,000	$	1,015.47	$	9.67		1.92%
Class Y	$	1,000	$	1,034.60	$	7.73	$	1,000	$	1,017.49	$	7.67		1.51%

See footnotes on page 6.

2016 SEMIANNUAL REPORT 5

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy Real Estate Securities Fund
Class A	$	1,000	$	1,036.50	$	7.33	$	1,000	$	1,017.86	$	7.26		1.44%
Class B**	$	1,000	$	1,031.80	$	11.89	$	1,000	$	1,013.32	$	11.78		2.34%
Class C	$	1,000	$	1,032.90	$	10.88	$	1,000	$	1,014.37	$	10.78		2.13%
Class E	$	1,000	$	1,036.40	$	7.33	$	1,000	$	1,017.82	$	7.26		1.45%
Class I	$	1,000	$	1,038.50	$	5.40	$	1,000	$	1,019.76	$	5.35		1.06%
Class R	$	1,000	$	1,035.80	$	8.35	$	1,000	$	1,016.88	$	8.27		1.63%
Class R6	$	1,000	$	1,039.60	$	4.49	$	1,000	$	1,020.71	$	4.45		0.87%
Class Y	$	1,000	$	1,037.50	$	6.42	$	1,000	$	1,018.76	$	6.36		1.26%
Ivy Science and Technology Fund
Class A	$	1,000	$	1,096.20	$	7.02	$	1,000	$	1,018.40	$	6.76		1.33%
Class B**	$	1,000	$	1,091.80	$	10.88	$	1,000	$	1,014.68	$	10.48		2.07%
Class C	$	1,000	$	1,092.40	$	10.46	$	1,000	$	1,015.03	$	10.08		2.00%
Class E	$	1,000	$	1,095.90	$	7.13	$	1,000	$	1,018.24	$	6.86		1.36%
Class I	$	1,000	$	1,097.80	$	5.24	$	1,000	$	1,020.06	$	5.05		1.00%
Class R	$	1,000	$	1,094.60	$	8.38	$	1,000	$	1,017.09	$	8.07		1.59%
Class R6	$	1,000	$	1,098.80	$	4.41	$	1,000	$	1,020.84	$	4.24		0.84%
Class Y	$	1,000	$	1,096.50	$	6.50	$	1,000	$	1,018.84	$	6.26		1.24%

* 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, 2016, and divided by 365.

** These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

*** Class share is 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 of this section.

(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 or exchange fees.

6 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY ASSET STRATEGY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	58.7%
Information Technology	13.0%
Consumer Discretionary	11.1%
Health Care	8.3%
Consumer Staples	7.5%
Financials	6.5%
Energy	6.1%
Industrials	4.2%
Materials	2.0%
Bullion (Gold)	7.7%
Purchased Options	0.0%
Bonds	26.1%
Corporate Debt Securities	11.0%
United States Government and Government Agency Obligations	9.2%
Other Government Securities	5.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	7.5%

Lipper Rankings

Category: Lipper Alternative Global Macro Funds	Rank	Percentile
1 Year	281/321		88
3 Year	244/268		91
5 Year	47/180		26
10 Year	4/53		8

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	58.8%
United States	54.0%
Mexico	4.8%
Europe	18.4%
United Kingdom	12.9%
Other Europe	5.5%
Bullion (Gold)	7.7%
Pacific Basin	5.8%
South America	1.1%
Other	0.7%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options	7.5%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Microsoft Corp.	United States	Information Technology	Systems Software
Kraft Foods Group, Inc.	United States	Consumer Staples	Packaged Foods & Meats
Halliburton Co.	United States	Energy	Oil & Gas Equipment & Services
Adobe Systems, Inc.	United States	Information Technology	Application Software
JPMorgan Chase & Co.	United States	Financials	Other Diversified Financial Services
Allergan plc	United States	Health Care	Pharmaceuticals
Chipotle Mexican Grill, Inc., Class A	United States	Consumer Discretionary	Restaurants
Alphabet, Inc., Class A	United States	Information Technology	Internet Software & Services
Home Depot, Inc. (The)	United States	Consumer Discretionary	Home Improvement Retail
Intuit, Inc.	United States	Information Technology	Application Software

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 7

CONSOLIDATED SCHEDULE OF INVESTMENTS IVY ASSET STRATEGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 1.8%
Continental AG (A)		259	$	54,430
Delphi Automotive plc		809		57,662
				112,092
Automobile Manufacturers – 0.8%
Suzuki Motor Corp. (A)		1,479		49,013
Cable & Satellite – 1.4%
Comcast Corp., Class A		1,350		89,546
Home Improvement Retail – 1.5%
Home Depot, Inc. (The)		754		97,051
Internet & Direct Marketing Retail – 1.3%
Amazon.com, Inc. (B)		101		84,602
Leisure Products – 2.2%
Media Group Holdings LLC, Series H (B)(C)(D)(E)		640		7,580
Media Group Holdings LLC, Series I (B)(C)(D)(E)		381		61,505
Media Group Holdings LLC, Series T (B)(C)(D)(E)		80		67,596
				136,681
Movies & Entertainment – 0.0%
Delta Topco Ltd. (B)(C)		718,555		1
Restaurants – 1.6%
Chipotle Mexican Grill, Inc., Class A (B)		236		99,988
Tires & Rubber – 0.5%
Bridgestone Corp. (A)		907		33,134
Total Consumer Discretionary – 11.1%				702,108
Consumer Staples
Brewers – 1.2%
InBev N.V. (A)		586		76,690
Packaged Foods & Meats – 3.5%
Kraft Foods Group, Inc.		1,469		131,481
Mead Johnson Nutrition Co.		212		16,782
Mondelez International, Inc., Class A		1,667		73,199
				221,462
Soft Drinks – 1.4%
Coca-Cola Co. (The)		2,071		87,645
Tobacco – 1.4%
ITC Ltd. (A)		4,875		17,673
Philip Morris International, Inc.		750		72,934
				90,607
Total Consumer Staples – 7.5%				476,404

COMMON STOCKS (Continued)	Shares		Value
Energy
Oil & Gas Equipment & Services – 3.0%
Halliburton Co.		2,507	$	112,534
Schlumberger Ltd.		948		74,535
				187,069
Oil & Gas Exploration & Production – 3.1%
Cabot Oil & Gas Corp.		310		8,007
EOG Resources, Inc.		905		87,566
Noble Energy, Inc.		2,080		74,325
Pioneer Natural Resources Co.		152		28,267
				198,165
Total Energy – 6.1%				385,234
Financials
Diversified Banks – 1.4%
Axis Bank Ltd. (A)		5,771		46,925
Banca Intesa S.p.A. (A)		18,934		41,985
				88,910
Life & Health Insurance – 1.5%
AIA Group Ltd. (A)		14,212		94,451
Other Diversified Financial Services – 3.0%
Citigroup, Inc.		1,882		88,869
JPMorgan Chase & Co.		1,539		102,501
				191,370
Property & Casualty Insurance – 0.6%
Berkshire Hathaway, Inc., Class B (B)		242		34,890
Total Financials – 6.5%				409,621
Health Care
Biotechnology – 2.9%
Alexion Pharmaceuticals, Inc. (B)		387		47,477
Amgen, Inc.		273		45,585
Shire Pharmaceuticals Group plc ADR		458		88,784
				181,846
Health Care Equipment – 1.0%
Medtronic plc		729		63,016
Pharmaceuticals – 4.4%
Allergan plc (B)		437		100,686
Bristol-Myers Squibb Co.		823		44,360
Pfizer, Inc.		2,731		92,496
Teva Pharmaceutical Industries Ltd. ADR		974		44,801
				282,343
Total Health Care – 8.3%				527,205

COMMON STOCKS (Continued)	Shares		Value
Industrials
Aerospace & Defense – 1.2%
Lockheed Martin Corp.		324	$	77,574
Construction & Engineering – 0.6%
Larsen & Toubro Ltd. (A)		1,896		40,810
Construction Machinery & Heavy Trucks – 0.6%
PACCAR, Inc.		589		34,604
Industrial Conglomerates – 1.1%
General Electric Co.		2,391		70,824
Industrial Machinery – 0.2%
Parker Hannifin Corp.		80		9,992
Railroads – 0.5%
Union Pacific Corp.		318		30,995
Total Industrials – 4.2%				264,799
Information Technology
Application Software – 3.2%
Adobe Systems, Inc. (B)		1,008		109,394
Intuit, Inc.		861		94,708
				204,102
Data Processing & Outsourced Services – 1.9%
FleetCor Technologies, Inc. (B)		224		38,874
Visa, Inc., Class A		1,006		83,155
				122,029
Electronic Equipment & Instruments – 0.1%
Keyence Corp. (A)		13		9,635
Internet Software & Services – 3.1%
Alibaba Group Holding Ltd. ADR (B)		745		78,766
Alphabet, Inc., Class A (B)		121		97,131
Facebook, Inc., Class A (B)		153		19,674
				195,571
IT Consulting & Other Services – 0.7%
Cognizant Technology Solutions Corp., Class A (B)		965		46,029
Semiconductor Equipment – 0.3%
ASML Holding N.V., Ordinary Shares(A)		149		16,304
Semiconductors – 1.6%
Micron Technology, Inc. (B)		1,657		29,459
QUALCOMM, Inc.		1,034		70,795
				100,254
Systems Software – 2.1%
Microsoft Corp.		2,326		133,998
Total Information Technology — 13.0%				827,922

8 SEMIANNUAL REPORT 2016

CONSOLIDATED SCHEDULE OF INVESTMENTS IVY ASSET STRATEGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Materials
Diversified Chemicals – 0.3%
PPG Industries, Inc.		216	$	22,284
Diversified Metals & Mining – 1.0%
BHP Billiton plc (A)		1,664		25,068
Rio Tinto plc (A)		1,136		37,916
				62,984
Paper Packaging – 0.7%
International Paper Co.		914		43,830
Total Materials – 2.0%				129,098
TOTAL COMMON STOCKS – 58.7%			$	3,722,391
(Cost: $4,228,067)
PURCHASED OPTIONS	Number of Contracts (Unrounded)
NIKE, Inc., Class B,
Call $65.00, Expires 10–21–16, OTC (Ctrpty: Citibank N.A.)		20,670		21
TOTAL PURCHASED OPTIONS – 0.0%				21
(Cost: $3,646)
CORPORATE DEBT SECURITIES	Principal
Consumer Discretionary
Movies & Entertainment – 10.7%
Delta Topco Ltd.,
10.000%, 11–24–60 (C)(F)	$	729,133		677,601
Total Consumer Discretionary – 10.7%				677,601
Financials
Diversified Banks – 0.3%
Royal Bank of Scotland Group plc (The):
7.500%, 12–29–49		14,766		13,658
8.625%, 12–29–49		6,547		6,449
				20,107
Total Financials – 0.3%				20,107
TOTAL CORPORATE DEBT SECURITIES – 11.0%			$	697,708
(Cost: $756,026)

	Principal		Value
OTHER GOVERNMENT SECURITIES(G)
Brazil – 1.1%
Brazil Notas do Tesouro Nacional,
10.000%, 1–1–21 (H)		BRL233,019	$	70,101
Mexico – 4.8%
Mexican Bonos:
8.000%, 6–11–20 (H)		MXN1,817,773		101,068
6.500%, 6–10–21 (H)		1,281,900		68,113
10.000%, 12–5–24 (H)		1,054,607		68,710
5.750%, 3–5–26 (H)		1,333,419		67,433
				305,324
TOTAL OTHER GOVERNMENT SECURITIES – 5.9%			$	375,425
(Cost: $391,046)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations – 0.0%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO:
5.000%, 5–15–18 (I)	$	102		3
5.500%, 3–15–23 (I)		154		10
5.500%, 10–15–25 (I)		403		50
5.500%, 1–15–33 (I)		186		35
5.500%, 5–15–33 (I)		332		63
6.000%, 11–15–35 (I)		332		73
Federal National Mortgage Association Agency REMIC/CMO:
5.500%, 6–25–23 (I)		295		32
5.500%, 8–25–33 (I)		615		80
5.500%, 12–25–33 (I)		89		1
5.500%, 4–25–34 (I)		623		117
5.500%, 8–25–35 (I)		735		128
5.500%, 11–25–36 (I)		1,108		192
Government National Mortgage Association Agency REMIC/CMO:
7.000%, 5–20–33 (I)		1,535		422
5.500%, 7–20–35 (I)		427		87
				1,293
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0%			$	1,293
(Cost: $1,269)

	Principal		Value
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations – 2.1%
U.S. Treasury Notes:
0.125%, 4–15–21	$	36,339	$	37,107
0.625%, 1–15–26		74,584		78,546
0.125%, 7–15–26		15,059		15,246
				130,899
Treasury Obligations – 7.1%
U.S. Treasury Bonds:
2.250%, 11–15–25 (J)		240,003		253,504
3.000%, 11–15–45		122,608		140,338
U.S. Treasury Notes,
2.000%, 8–15–25		54,308		56,238
				450,080
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 9.2%			$	580,979
(Cost: $558,056)
BULLION – 7.7%	Troy Ounces
Gold		367		483,592
(Cost: $437,875)
SHORT-TERM SECURITIES	Principal
Commercial Paper(K) – 3.4%
Campbell Soup Co.,
0.590%, 10–3–16	$	15,250		15,249
Clorox Co. (The):
0.761%, 10–3–16		6,000		6,000
0.870%, 11–22–16		1,046		1,045
0.900%, 11–28–16		603		602
DTE Energy Co. (GTD by Detroit Edison Co.):
0.660%, 10–4–16		1,500		1,500
0.690%, 10–5–16		1,200		1,200
0.610%, 10–6–16		7,000		6,999
DTE Gas Co.,
0.500%, 10–3–16		10,000		9,999
Ecolab, Inc.,
0.700%, 10–6–16		10,000		9,999
General Mills, Inc.,
0.580%, 10–6–16		10,000		9,999
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.),
0.810%, 10–26–16		10,000		9,994
Medtronic Global Holdings SCA:
0.720%, 10–3–16		10,000		9,999
0.730%, 11–7–16		8,000		7,994
Northern Illinois Gas Co.,
0.490%, 10–6–16		20,000		19,998
River Fuel Co. #2, Inc. (GTD by Bank of Nova Scotia),
0.580%, 10–31–16		5,000		4,997

2016 SEMIANNUAL REPORT 9

CONSOLIDATED SCHEDULE OF INVESTMENTS IVY ASSET STRATEGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper(K) (Continued)
River Fuel Funding Co. #3, Inc. (GTD by Bank of Nova Scotia),
0.500%, 10–14–16	$	22,123	$	22,119
Rockwell Automation, Inc.,
0.520%, 10–3–16		11,175		11,174
Sysco Corp.,
0.560%, 10–3–16		6,270		6,270
United Technologies Corp.:
0.790%, 10–17–16		19,000		18,993
0.790%, 10–18–16		4,020		4,018
0.850%, 11–16–16		10,000		9,989
Virginia Electric and Power Co.,
0.670%, 10–7–16		6,500		6,499
Wisconsin Gas LLC,
0.460%, 10–4–16		20,000		19,999
				214,635
Master Note – 0.0%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (L)		2,892		2,892
Municipal Obligations –2.8%
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist Hlth Sys/West), Ser 1998B (GTD by U.S. Bank N.A.),
0.850%, 10–1–16 (L)		16,600		16,600
CA Muni Fin Auth, Recovery Zone Fac Bonds (Chevron USA, Inc. Proj), Ser 2010C (GTD by Chevron Corp.),
0.750%, 10–1–16 (L)		2,386		2,386
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank N.A.),
0.830%, 10–7–16 (L)		13,375		13,375
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank N.A.),
0.840%, 10–7–16 (L)		17,024		17,024

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.),
0.850%, 10–7–16 (L)	$	24,000	$	24,000
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2008B (GTD by U.S. Bank N.A.),
0.830%, 10–7–16 (L)		1,905		1,905
IL Fin Auth, Var Rate Demand Rev Bonds (The Carle Fndtn), Ser 2009 (GTD by JPMorgan Chase Bank N.A.),
0.880%, 10–7–16 (L)		855		855
IL Fin Auth, Var Rate Demand Rev Bonds (The Univ of Chicago Med Ctr), Ser D (GTD by JPMorgan Chase & Co.),
0.700%, 10–1–16 (L)		9,000		9,000
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2012A (GTD by U.S. Bank N.A.),
0.850%, 10–1–16 (L)		28,600		28,600
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2014C-C (GTD by U.S. Bank N.A.),
0.850%, 10–1–16 (L)		12,500		12,500
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008A (GTD by U.S. Bank N.A.),
0.800%, 10–7–16 (L)		5,000		5,000
NY Hsng Fin Agy, 625 W 57th Street Hsng Rev Bonds, Ser 2016A (GTD by Bank of New York Mellon (The)),
0.780%, 10–7–16 (L)		10,000		10,000

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013A-1 (GTD by Bank of America N.A.),
0.840%, 10–7–16 (L)	$	6,000	$	6,000
Sheridan Redev Agy CO Tax, Var Rfdg S Santa Fe Dr Corridor Redev PJ, Ser A-1 (GTD by JPMorgan Chase & Co.),
0.960%, 10–7–16 (L)		1,900		1,900
The Regents of the Univ of CA, Gen Rev Bonds, Ser AL,
0.850%, 10–7–16 (L)		14,600		14,600
Tuscaloosa Cnty Indl Dev Auth, Gulf Opp Zone Bonds (Hunt Refining Proj), Ser 2011G (GTD by Bank of Nova Scotia),
0.840%, 10–7–16 (L)		6,000		6,000
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004 (GTD by U.S. Bank N.A.),
0.910%, 10–1–16 (L)		6,830		6,830
				176,575
United States Government Agency Obligations – 1.0%
Overseas Private Investment Corp. (GTD by U.S. Government):
0.560%, 10–5–16 (L)		5,450		5,450
0.750%, 10–5–16 (L)		1,154		1,154
0.760%, 10–5–16 (L)		25,605		25,605
0.800%, 10–5–16 (L)		19,653		19,653
0.760%, 10–7–16 (L)		5,431		5,431
0.800%, 10–7–16 (L)		4,846		4,846
				62,139
TOTAL SHORT-TERM SECURITIES – 7.2%			$	456,241
(Cost: $456,246)
TOTAL INVESTMENT SECURITIES – 99.7%			$	6,317,650
(Cost: $6,832,231)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3%				20,533
NET ASSETS – 100.0%			$	6,338,183

10 SEMIANNUAL REPORT 2016

CONSOLIDATED SCHEDULE OF INVESTMENTS IVY ASSET STRATEGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Notes to Consolidated Schedule of Investments

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

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

(C) Restricted securities. At September 30, 2016, the Fund owned the following restricted securities:

Security	Acquisition Date(s)	Shares		Cost		Market Value
Delta Topco Ltd.	1–23–12 to 6–15–12		718,555	$	339,126	$	1
Media Group Holdings LLC, Series H	8–29–13 to 10–31–13		640		448,211		7,580
Media Group Holdings LLC, Series I	4–23–13 to 11–8–13		381		140,081		61,505
Media Group Holdings LLC, Series T	7–2–13 to 1–23–15		80		172,543		67,596
		Principal
Delta Topco Ltd., 10.000%, 11–24–60	4–1–12 to 1–1–16		$729,133		735,341		677,601
				$	1,835,302		$814,283

The total value of these securities represented 12.8% of net assets at September 30, 2016.

(D) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund and consolidated as described in Note 6 of the Notes to Financial Statements.

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

(F) Payment-in-kind bonds.

(G) Other Government Securities may include emerging markets sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities.

(H) Principal amount and exercise prices are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real and MXN - Mexican Peso).

(I) Interest-only security. Amount shown as principal represents notional amount for computation of interest.

(J) All or a portion of securities with an aggregate value of $5,037 are held in collateralized accounts for OTC derivatives collateral and is governed by International Swaps and Derivatives Association, Inc. Master Agreements.

(K) Rate shown is the yield to maturity at September 30, 2016.

(L) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		22,300	U.S. Dollar		29,251	10–26–16	State Street Global Markets	$	334	$	—
Euro		76,777	U.S. Dollar		86,456	10–26–16	State Street Global Markets		117		—
								$	451	$	—

The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type		Number of Contracts		Expiration Month		Exercise Price		Premium Received		Value
NIKE, Inc., Class B	Citibank N.A.		Put		16,536		October 2016	$	55.00	$	3,748	$	(4,192	)

2016 SEMIANNUAL REPORT 11

CONSOLIDATED SCHEDULE OF INVESTMENTS IVY ASSET STRATEGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	565,426	$	—	$	136,682
Consumer Staples		476,404		—		—
Energy		385,234		—		—
Financials		409,621		—		—
Health Care		527,205		—		—
Industrials		264,799		—		—
Information Technology		827,922		—		—
Materials		129,098		—		—
Total Common Stocks	$	3,585,709	$	—	$	136,682
Purchased Options		—		21		—
Corporate Debt Securities		—		20,107		677,601
Other Government Securities		—		375,425		—
United States Government Agency Obligations		—		1,293		—
United States Government Obligations		—		580,979		—
Bullion		483,592		—		—
Short-Term Securities		—		456,241		—
Total	$	4,069,301	$	1,434,066	$	814,283
Forward Foreign Currency Contracts	$	—	$	451	$	—
Liabilities
Written Options	$	—	$	4,192	$	—

During the period ended September 30, 2016, there were no transfers between any levels.

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

	Common Stocks			Corporate Debt Securities
Beginning Balance 4-1-16	$	351,937		$	729,133
Net realized gain (loss)		—			—
Net change in unrealized appreciation (depreciation)		(145,435	)		(51,532	)
Purchases		—			—
Sales		(69,820	)		—
Amortization/Accretion of premium/discount		—			—
Transfers into Level 3 during the period		—			—
Transfers out of Level 3 during the period		—			—
Ending Balance 9-30-16	$	136,682		$	677,601
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-16	$	(145,435	)	$	(51,532	)

12 SEMIANNUAL REPORT 2016

CONSOLIDATED SCHEDULE OF INVESTMENTS IVY ASSET STRATEGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Information about Level 3 fair value measurements:

	Fair Value at 9-30-16		Valuation Technique(s)	Unobservable Input(s)	Input Value(s)
Assets
Common Stocks	$	67,596	Discounted cash flows model	Long-term growth rate		2.50%
				Weighted average cost of capital		15%
				Illiquidity discount		10%
		61,506	Transaction	Price		$28.14 to 344
				Illiquidity discount		5 to 10%
		7,580	Discounted cash flows model	Long-term growth rate		2.5%
				Weighted average cost of capital		40%
				Illiquidity discount		10%
				Methodology weighting		75%
			Discounted book value	Discount factor		100%
				Methodology weighting		25%
Corporate Debt Securities		677,601	Transaction	Price		$28.14
				Illiquidity discount		5%

Significant increases (decreases) in long-term growth rate inputs could result in a higher (lower) fair value measurement. However, significant increases (decreases) in weighted average cost of capital, discount factors, or illiquidity discount inputs could result in a higher (lower) fair value measurement.

During the period ended September 30, 2016, securities totaling $910,970 changed valuation techniques from discounted cash flows model to a transaction approach. The change in valuation techniques is primarily due to the discounted cash flows model no longer reflecting current market participant assumptions.

During the period ended September 30, 2016, securities totaling $60,093 changed valuation techniques from discounted cash flows model to a blended methodology of discounted cash flows model and discounted book value. The change in valuation techniques is primarily due to the blended methodology more closely reflecting current market participant assumptions.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

OTC = Over the Counter

REMIC = Real Estate Mortgage Investment Conduit

Country Diversification

(as a % of net assets)
United States	54.0%
United Kingdom	12.9%
Mexico	4.8%
Ireland	2.4%
India	1.6%
Hong Kong	1.5%
Japan	1.4%
China	1.3%
Belgium	1.2%
Brazil	1.1%
Other Countries	2.6%
Other+	15.2%

+ Includes gold bullion, options, cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 13

PORTFOLIO HIGHLIGHTS IVY BALANCED FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation
Stocks	59.3%
Health Care	13.9%
Information Technology	11.5%
Consumer Discretionary	9.5%
Consumer Staples	7.7%
Financials	4.8%
Energy	4.4%
Industrials	3.5%
Materials	2.2%
Real Estate	1.3%
Telecommunication Services	0.5%
Bonds	32.7%
Corporate Debt Securities	29.4%
United States Government and Government Agency Obligations	3.1%
Loans	0.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	8.0%

Lipper Rankings

Category: Lipper Mixed-Asset Target Allocation Growth Funds	Rank	Percentile
1 Year	431/501		86
3 Year	283/458		62
5 Year	186/402		47
10 Year	24/309		8

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
Carnival Corp.	Consumer Discretionary	Hotels, Resorts & Cruise Lines
Shire Pharmaceuticals Group plc ADR	Health Care	Biotechnology
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
Applied Materials, Inc.	Information Technology	Semiconductor Equipment
JPMorgan Chase & Co.	Financials	Other Diversified Financial Services
Comcast Corp., Class A	Consumer Discretionary	Cable & Satellite
Allergan plc, Convertible Series A, 5.500%	Health Care	Pharmaceuticals
Teva Pharmaceutical Industries Ltd., Convertible, 7.000%	Health Care	Pharmaceuticals
Johnson & Johnson	Health Care	Pharmaceuticals
PNC Financial Services Group, Inc. (The)	Financials	Regional Banks

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

14 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 1.3%
Johnson Controls, Inc.		768	$	35,722
Cable & Satellite – 1.5%
Comcast Corp., Class A		614		40,739
Casinos & Gaming – 1.1%
Las Vegas Sands, Inc.		512		29,444
General Merchandise Stores – 0.7%
Target Corp.		280		19,251
Home Improvement Retail – 0.8%
Home Depot, Inc. (The)		166		21,393
Homefurnishing Retail – 1.0%
Williams-Sonoma, Inc.		531		27,134
Hotels, Resorts & Cruise Lines – 2.0%
Carnival Corp.		1,116		54,476
Movies & Entertainment – 1.1%
Twenty-First Century Fox, Inc.		1,150		28,442
Total Consumer Discretionary – 9.5%				256,601
Consumer Staples
Brewers – 1.0%
Anheuser-Busch InBev S.A. ADR		201		26,440
Distillers & Vintners – 0.8%
Constellation Brands, Inc.		138		22,901
Drug Retail – 1.0%
CVS Caremark Corp.		300		26,688
Packaged Foods & Meats – 3.7%
J.M. Smucker Co. (The)		254		34,441
Kraft Foods Group, Inc.		353		31,633
Mead Johnson Nutrition Co.		431		34,017
				100,091
Soft Drinks – 1.2%
Coca-Cola Co. (The)		735		31,090
Total Consumer Staples—7.7%				207,210
Energy
Integrated Oil & Gas – 0.1%
Chevron Corp.		30		3,036
Oil & Gas Equipment & Services – 1.1%
Schlumberger Ltd.		381		29,962
Oil & Gas Exploration & Production – 2.4%
Newfield Exploration Co. (A)		736		31,971
Noble Energy, Inc.		894		31,952
				63,923
Total Energy—3.6%				96,921

COMMON STOCKS (Continued)	Shares		Value
Financials
Financial Exchanges & Data – 1.3%
Intercontinental Exchange, Inc.		131	$	35,326
Other Diversified Financial Services – 1.6%
JPMorgan Chase & Co.		638		42,498
Regional Banks – 1.4%
PNC Financial Services Group, Inc. (The)		425		38,275
Total Financials – 4.3%				116,099
Health Care
Biotechnology – 2.8%
Biogen, Inc. (A)		84		26,201
Shire Pharmaceuticals Group plc ADR		263		50,925
				77,126
Health Care Equipment – 1.3%
Medtronic plc		395		34,150
Health Care Services – 0.9%
Laboratory Corp. of America Holdings (A)		179		24,623
Managed Health Care – 2.0%
Anthem, Inc.		243		30,469
UnitedHealth Group, Inc.		161		22,519
				52,988
Pharmaceuticals – 3.9%
Allergan plc (A)		130		29,998
Johnson & Johnson		333		39,313
Teva Pharmaceutical Industries Ltd. ADR		772		35,506
				104,817
Total Health Care – 10.9%				293,704
Industrials
Industrial Conglomerates – 1.0%
General Electric Co.		882		26,120
Railroads – 1.1%
Union Pacific Corp.		314		30,664
Trucking – 0.7%
Knight Transportation, Inc.		612		17,548
Total Industrials – 2.8%				74,332
Information Technology
Application Software – 1.4%
Autodesk, Inc. (A)		525		37,977
Communications Equipment – 1.3%
Harris Corp.		376		34,418

COMMON STOCKS (Continued)	Shares		Value
Data Processing & Outsourced Services – 1.0%
FleetCor Technologies, Inc. (A)		162	$	28,092
IT Consulting & Other Services – 1.0%
Cognizant Technology Solutions Corp., Class A (A)		596		28,440
Semiconductor Equipment – 1.7%
Applied Materials, Inc.		1,518		45,768
Semiconductors – 2.0%
Broadcom Corp., Class A		163		28,191
Microchip Technology, Inc.		401		24,897
				53,088
Systems Software – 1.3%
Symantec Corp.		1,361		34,156
Technology Hardware, Storage & Peripherals – 1.8%
Apple, Inc.		429		48,457
Total Information Technology – 11.5%				310,396
Materials
Commodity Chemicals – 0.4%
Valvoline, Inc. (A)		479		11,241
Diversified Chemicals – 1.3%
PPG Industries, Inc.		345		35,613
Total Materials – 1.7%				46,854
Real Estate
Specialized REITs – 1.3%
Crown Castle International Corp.		372		35,013
Total Real Estate – 1.3%				35,013
TOTAL COMMON STOCKS – 53.3%			$	1,437,130
(Cost: $1,205,302)

2016 SEMIANNUAL REPORT 15

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

PREFERRED STOCKS	Shares		Value
Energy
Oil & Gas Exploration & Production – 0.8%
Hess Corp., 8.000%, Convertible		341	$	22,540
Total Energy – 0.8%				22,540
Financials
Diversified Banks – 0.1%
First Republic Bank, Series G, 5.500%		120		3,239
Other Diversified Financial Services – 0.4%
Citigroup, Inc., 6.300%		366		9,801
Total Financials – 0.5%				13,040
Health Care
Pharmaceuticals – 3.0%
Allergan plc, Convertible Series A, 5.500%		49		40,222
Teva Pharmaceutical Industries Ltd., Convertible, 7.000%		49		39,853
				80,075
Total Health Care – 3.0%				80,075
Industrials
Environmental & Facilities Services – 0.7%
Stericycle, Inc., 5.250%		282		18,688
Total Industrials – 0.7%				18,688
Materials
Commodity Chemicals – 0.5%
A. Schulman, Inc., Convertible, 6.000%		19		14,562
Total Materials – 0.5%				14,562
Telecommunication Services
Integrated Telecommunication Services – 0.5%
Frontier Communications Corp., Convertible Series A, 11.125%		152		12,777
Total Telecommunication Services – 0.5%				12,777
TOTAL PREFERRED STOCKS – 6.0%			$	161,682
(Cost: $181,916)

CORPORATE DEBT SECURITIES	Principal		Value
Consumer Discretionary
Apparel, Accessories & Luxury Goods – 0.5%
Under Armour, Inc.,
3.250%, 6–15–26	$	12,500	$	12,592
Automobile Manufacturers – 0.3%
General Motors Co.,
6.600%, 4–1–36		5,809		7,002
Automotive Retail – 0.1%
AutoZone, Inc.,
3.125%, 4–21–26		3,000		3,067
Broadcasting – 0.0%
Discovery Communications LLC,
3.300%, 5–15–22		900		924
Cable & Satellite – 0.4%
Comcast Corp. (GTD by Comcast Cable Communications and NBCUniversal),
3.150%, 3–1–26		4,712		4,986
Pearson Funding Five plc,
3.250%, 5–8–23 (B)		900		882
Viacom, Inc.:
2.500%, 9–1–18		1,100		1,111
2.200%, 4–1–19		2,000		2,006
2.750%, 12–15–19		3,000		3,047
				12,032
General Merchandise Stores – 0.0%
Dollar General Corp.,
1.875%, 4–15–18		1,000		1,006
Homebuilding – 0.1%
Toll Brothers Finance Corp.,
4.375%, 4–15–23		1,500		1,538
Hotels, Resorts & Cruise Lines – 0.0%
Hyatt Hotels Corp.,
3.375%, 7–15–23		500		514
Housewares & Specialties – 0.2%
Newell Rubbermaid, Inc.,
4.200%, 4–1–26		5,400		5,885
Publishing – 0.1%
Thomson Reuters Corp.,
3.350%, 5–15–26		2,100		2,157
Total Consumer Discretionary – 1.7%				46,717
Consumer Staples
Brewers – 0.2%
Molson Coors Brewing Co.,
3.000%, 7–15–26		1,500		1,511
SABMiller Holdings, Inc.,
2.200%, 8–1–18 (B)		2,700		2,736
				4,247

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Distillers & Vintners – 0.0%
Beam, Inc.,
1.750%, 6–15–18	$	1,000	$	1,002
Food Distributors – 0.1%
Campbell Soup Co.,
2.500%, 8–2–22		2,400		2,458
Wm. Wrigley Jr. Co.,
2.400%, 10–21–18 (B)		1,500		1,524
				3,982
Household Products – 0.0%
Church & Dwight Co., Inc.,
2.875%, 10–1–22		500		515
Packaged Foods & Meats – 0.1%
Mead Johnson Nutrition Co.,
3.000%, 11–15–20		2,100		2,187
Personal Products – 0.0%
Estee Lauder Co., Inc. (The),
2.350%, 8–15–22		1,200		1,228
Soft Drinks – 0.4%
Coca-Cola Co. (The),
2.250%, 9–1–26		10,000		9,941
Tobacco – 0.2%
BAT International Finance plc,
2.750%, 6–15–20 (B)		4,000		4,142
Total Consumer Staples – 1.0%				27,244
Energy
Integrated Oil & Gas – 0.2%
Chevron Corp.,
2.954%, 5–16–26		6,000		6,204
Oil & Gas Equipment & Services – 0.3%
Newpark Resources, Inc., Convertible,
4.000%, 10–1–17		2,100		2,080
Schlumberger Holding Corp.,
2.350%, 12–21–18 (B)		6,000		6,112
				8,192
Oil & Gas Exploration & Production – 0.8%
BP Capital Markets plc (GTD by BP plc):
2.241%, 9–26–18		4,250		4,316
2.315%, 2–13–20		3,000		3,061
Hess Corp.,
4.300%, 4–1–27		8,700		8,772
Occidental Petroleum Corp.,
2.600%, 4–15–22		3,000		3,065
ONEOK Partners L.P.,
3.200%, 9–15–18		2,750		2,802
				22,016

16 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Storage & Transportation – 1.5%
Buckeye Partners L.P.,
2.650%, 11–15–18	$	6,300	$	6,363
Colorado Interstate Gas Co.,
4.150%, 8–15–26 (B)		4,800		4,762
Hornbeck Offshore Services, Inc., Convertible,
1.500%, 9–1–19		10,951		6,242
Kinder Morgan Energy Partners L.P.,
2.650%, 2–1–19		3,250		3,277
Plains All American Pipeline L.P. and PAA Finance Corp.,
4.650%, 10–15–25		3,500		3,638
Southern Natural Gas Co.,
5.900%, 4–1–17 (B)		8,700		8,885
Williams Partners L.P.,
3.600%, 3–15–22		5,500		5,596
				38,763
Total Energy – 2.8%				75,175
Financials
Asset Management & Custody Banks – 0.6%
Ares Capital Corp.:
4.875%, 11–30–18		6,500		6,785
3.875%, 1–15–20		10,000		10,343
				17,128
Consumer Finance – 0.8%
American Express Co.,
4.900%, 12–29–49		5,800		5,720
Capital One Bank USA N.A.:
2.150%, 11–21–18		3,150		3,181
2.250%, 2–13–19		4,000		4,051
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.),
3.700%, 5–9–23		1,500		1,526
Hyundai Capital America,
2.875%, 8–9–18 (B)		1,550		1,582
Total System Services, Inc.,
2.375%, 6–1–18		5,538		5,581
				21,641
Diversified Banks – 6.5%
ABN AMRO Bank N.V.,
2.500%, 10–30–18 (B)		6,200		6,311
Australia & New Zealand Banking Group Ltd.,
4.400%, 5–19–26 (B)		9,000		9,558
Bank of America Corp.:
2.000%, 1–11–18		2,500		2,511
8.000%, 7–29–49		12,000		12,240
Bank of New York Mellon Corp. (The),
2.100%, 1–15–19		6,000		6,100
Bank of Nova Scotia (The):
1.450%, 4–25–18		2,500		2,505
2.050%, 10–30–18		5,000		5,059
Barclays plc,
5.200%, 5–12–26		6,000		6,180

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
BNP Paribas S.A.,
2.450%, 3–17–19	$	4,500	$	4,583
Commonwealth Bank of Australia,
2.250%, 3–13–19		4,750		4,826
DBS Group Holdings Ltd.,
2.246%, 7–16–19 (B)		8,750		8,895
HSBC Holdings plc,
3.400%, 3–8–21		7,500		7,758
ING Bank N.V.:
2.500%, 10–1–19 (B)		5,400		5,511
2.450%, 3–16–20 (B)		7,200		7,349
2.750%, 3–22–21 (B)		8,700		8,984
KeyBank N.A.,
2.500%, 12–15–19		4,000		4,102
Lloyds Bank plc (GTD by Lloyds Banking Group plc):
2.300%, 11–27–18		2,000		2,022
2.350%, 9–5–19		2,650		2,686
Mizuho Bank Ltd.,
2.650%, 9–25–19 (B)		5,200		5,308
Rabobank Capital Funding Trust III (GTD by Rabobank Nederland),
5.254%, 12–29–49 (B)		9,162		9,166
Royal Bank of Scotland Group plc (The),
7.640%, 3–29–49		5,800		5,626
Skandinaviska Enskilda Banken AB,
2.375%, 3–25–19 (B)		4,000		4,068
Societe Generale S.A.:
4.250%, 4–14–25 (B)		2,750		2,747
5.922%, 4–29–49 (B)		11,000		11,098
Standard Chartered plc,
2.250%, 4–17–20 (B)		10,700		10,697
Sumitomo Mitsui Banking Corp.,
2.450%, 1–16–20		4,000		4,076
U.S. Bancorp,
3.100%, 4–27–26		3,600		3,721
Wells Fargo & Co.,
7.980%, 3–29–49		7,000		7,316
Westpac Banking Corp.,
2.250%, 7–30–18		5,000		5,069
				176,072
Investment Banking & Brokerage – 1.1%
BGC Partners, Inc.,
5.375%, 12–9–19		6,500		6,918
Charles Schwab Corp. (The),
2.200%, 7–25–18		1,000		1,017
Credit Suisse Group Funding (Guernsey) Ltd.,
2.750%, 3–26–20		4,000		4,014
Goldman Sachs Group, Inc. (The):
2.900%, 7–19–18		1,350		1,381
2.625%, 1–31–19		4,000		4,084
2.600%, 4–23–20		3,400		3,456
Morgan Stanley:
2.125%, 4–25–18		2,500		2,521
2.650%, 1–27–20		5,900		6,029
				29,420

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Life & Health Insurance – 0.6%
AIA Group Ltd.,
2.250%, 3–11–19 (B)	$	2,600	$	2,634
Citizens Financial Group, Inc.,
3.750%, 7–1–24		11,865		11,873
New York Life Global Funding,
1.550%, 11–2–18 (B)		700		704
				15,211
Multi-Line Insurance – 0.6%
American International Group, Inc.,
2.300%, 7–16–19		2,750		2,800
Aon plc (GTD by Aon Corp.),
2.800%, 3–15–21		6,000		6,156
Loews Corp.,
3.750%, 4–1–26		5,981		6,357
				15,313
Other Diversified Financial Services – 1.9%
Citigroup, Inc.:
5.800%, 11–29–49		9,200		9,258
5.950%, 12–29–49		9,250		9,432
Fidelity National Financial, Inc.,
6.600%, 5–15–17		900		925
Fidelity National Information Services, Inc.:
2.000%, 4–15–18		1,250		1,261
2.850%, 10–15–18		1,300		1,334
Fifth Street Finance Corp.,
4.875%, 3–1–19		6,700		6,844
JPMorgan Chase & Co.:
7.900%, 4–29–49		6,000		6,165
5.000%, 12–29–49		6,000		5,925
Moody’s Corp.,
2.750%, 7–15–19		1,300		1,337
PennantPark Investment Corp.,
4.500%, 10–1–19		8,100		8,073
Total Capital,
2.125%, 8–10–18		1,500		1,525
				52,079
Property & Casualty Insurance – 0.3%
Berkshire Hathaway Finance Corp.,
2.200%, 3–15–21		3,000		3,089
Hanover Insurance Group, Inc. (The),
4.500%, 4–15–26		4,200		4,367
				7,456
Regional Banks – 0.7%
PNC Bank N.A.:
2.200%, 1–28–19		4,000		4,064
3.250%, 6–1–25		4,800		5,056
SunTrust Banks, Inc.:
2.350%, 11–1–18		3,700		3,764
5.625%, 12–29–49		4,800		4,962
				17,846

2016 SEMIANNUAL REPORT 17

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Specialized Finance – 0.4%
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.,
5.450%, 6–15–23 (B)	$	8,100	$	8,675
Intercontinental Exchange, Inc.,
2.500%, 10–15–18		1,700		1,740
				10,415
Total Financials – 13.5%				362,581
Health Care
Biotechnology – 0.4%
Amgen, Inc.:
2.200%, 5–22–19		3,500		3,565
2.125%, 5–1–20		6,000		6,091
				9,656
Health Care Equipment – 0.1%
Zimmer Holdings, Inc.,
2.700%, 4–1–20		3,000		3,065
Health Care Facilities – 0.3%
Surgery Center Holdings, Inc.,
8.875%, 4–15–21 (B)		9,000		9,608
Health Care Services – 0.4%
Laboratory Corp. of America Holdings,
2.500%, 11–1–18		1,450		1,474
Quest Diagnostics, Inc.:
2.500%, 3–30–20		2,750		2,783
3.450%, 6–1–26		5,937		6,190
				10,447
Health Care Supplies – 0.6%
Cardinal Health, Inc.,
2.400%, 11–15–19		3,900		3,987
Shire Acquisitions Investments Ireland Designated Activity Co.,
2.875%, 9–23–23		11,600		11,653
				15,640
Managed Health Care – 0.4%
Aetna, Inc.,
2.200%, 3–15–19		2,600		2,640
UnitedHealth Group, Inc.,
2.700%, 7–15–20		1,700		1,767
WellPoint, Inc.,
1.875%, 1–15–18		7,200		7,234
				11,641
Pharmaceuticals – 0.9%
AbbVie, Inc.,
3.200%, 5–14–26		4,200		4,254
Forest Laboratories, Inc.,
5.000%, 12–15–21 (B)		9,500		10,633
Mylan, Inc.,
2.550%, 3–28–19		700		709
Perrigo Co. Ltd.,
2.300%, 11–8–18		8,850		8,880
				24,476
Total Health Care – 3.1%				84,533

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Industrials
Aerospace & Defense – 1.0%
BAE Systems Holdings, Inc.,
2.850%, 12–15–20 (B)	$	4,150	$	4,248
Huntington Ingalls Industries, Inc.,
5.000%, 11–15–25 (B)		19,085		20,182
TransDigm, Inc. (GTD by TransDigm Group, Inc.),
6.000%, 7–15–22		3,500		3,693
				28,123
Airlines – 0.2%
Southwest Airlines Co.,
2.650%, 11–5–20		4,300		4,418
Railroads – 0.0%
Kansas City Southern de Mexico S.A. de C.V.,
2.350%, 5–15–20		873		880
Trucking – 0.1%
Ryder System, Inc.,
2.450%, 11–15–18		2,150		2,187
Total Industrials – 1.3%				35,608
Information Technology
Data Processing & Outsourced Services – 0.1%
Fiserv, Inc.,
2.700%, 6–1–20		2,900		2,990
Electronic Equipment & Instruments – 0.1%
FLIR Systems, Inc.,
3.125%, 6–15–21		3,600		3,716
Semiconductor Equipment – 0.2%
Lam Research Corp.,
3.450%, 6–15–23		4,200		4,297
Semiconductors – 1.4%
Micron Technology, Inc.,
5.500%, 2–1–25		8,081		7,920
Micron Technology, Inc., Convertible,
3.000%, 11–15–43		33,500		29,773
				37,693
Systems Software – 0.2%
Oracle Corp.,
2.250%, 10–8–19		5,300		5,431
Total Information Technology – 2.0%				54,127
Materials
Construction Materials – 0.6%
Hillman Group, Inc. (The),
6.375%, 7–15–22 (B)		16,330		15,309

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Chemicals – 0.1%
Solvay Finance (America) LLC (GTD by Solvay S.A.),
3.400%, 12–3–20 (B)	$	3,250	$	3,402
Diversified Metals & Mining – 0.1%
Anglo American plc,
4.125%, 4–15–21 (B)		2,200		2,211
Specialty Chemicals – 0.1%
Albemarle Corp. (GTD by Albemarle Holdings Corp. and Albemarle Holdings II Corp.),
3.000%, 12–1–19		1,650		1,702
RPM International, Inc.,
3.450%, 11–15–22		1,000		1,024
				2,726
Total Materials – 0.9%				23,648
Real Estate
Specialized REITs – 0.2%
Crown Castle International Corp.:
5.250%, 1–15–23		1,046		1,185
3.700%, 6–15–26		3,000		3,132
				4,317
Total Real Estate – 0.2%				4,317
Telecommunication Services
Integrated Telecommunication Services – 0.8%
AT&T, Inc.:
2.300%, 3–11–19		9,000		9,151
4.125%, 2–17–26		8,400		9,082
Verizon Communications, Inc.,
2.625%, 2–21–20		2,468		2,538
				20,771
Wireless Telecommunication Service – 0.5%
American Tower Corp.:
2.250%, 1–15–22		8,700		8,683
4.700%, 3–15–22		1,400		1,556
3.375%, 10–15–26		3,900		3,956
Virgin Media Finance plc,
4.875%, 2–15–22		284		241
				14,436
Total Telecommunication Services – 1.3%				35,207
Utilities
Electric Utilities – 0.9%
Electricite de France S.A.,
2.150%, 1–22–19 (B)		4,000		4,057
Entergy Texas, Inc.,
2.550%, 6–1–21		3,900		4,011
Exelon Corp.,
2.450%, 4–15–21		3,600		3,672
Georgia Power Co.,
2.400%, 4–1–21		3,000		3,086

18 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Electric Utilities (Continued)
PPL Energy Supply LLC,
4.600%, 12–15–21	$	2,800	$	2,079
Southern Co. (The),
2.950%, 7–1–23		6,000		6,208
				23,113
Gas Utilities – 0.2%
Sempra Energy,
2.400%, 3–15–20		4,150		4,228
Independent Power Producers & Energy Traders –0.3%
Canadian Solar, Inc., Convertible,
4.250%, 2–15–19		10,000		8,975
Multi-Utilities – 0.2%
Dominion Resources, Inc.,
2.500%, 12–1–19		4,000		4,096
Public Service Electric and Gas Co.,
2.250%, 9–15–26		2,100		2,094
				6,190
Total Utilities – 1.6%				42,506
TOTAL CORPORATE DEBT SECURITIES – 29.4%			$	791,663
(Cost: $779,117)
LOANS (C)
Industrials
Industrial Machinery – 0.2%
Dynacast International LLC,
9.500%, 1–30–23		5,426		5,290
Total Industrials – 0.2%				5,290
TOTAL LOANS – 0.2%			$	5,290
(Cost: $5,316)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations – 0.0%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.000%, 9–1–17		10		10
5.000%, 1–1–18		7		7
6.500%, 10–1–28		41		47
6.500%, 2–1–29		6		7
7.000%, 11–1–31		49		58
6.500%, 2–1–32		36		42
7.000%, 2–1–32		53		62
7.000%, 3–1–32		24		29
7.000%, 7–1–32		29		34
6.500%, 9–1–32		28		32
5.500%, 5–1–33		25		28
5.500%, 6–1–33		23		26
				382
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0%			$	382
(Cost: $337)

UNITED STATES GOVERNMENT OBLIGATIONS	Principal		Value
Treasury Inflation Protected Obligations – 3.1%
U.S. Treasury Notes:
0.125%, 7–15–26	$	29,115	$	29,475
2.125%, 2–15–40		25,831		34,502
1.000%, 2–15–46		17,672		19,643
				83,620
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 3.1%			$	83,620
(Cost: $81,600)
SHORT-TERM SECURITIES
Commercial Paper (D) – 6.2%
Becton Dickinson & Co.,
0.850%, 11–16–16		5,000		4,994
Clorox Co. (The),
0.761%, 10–3–16		7,200		7,200
E.I. du Pont de Nemours and Co.,
0.760%, 10–17–16		10,000		9,996
Ecolab, Inc.,
0.700%, 10–6–16		10,000		9,999
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.):
0.650%, 10–4–16		10,000		9,999
0.790%, 10–19–16		10,000		9,996
Malayan Banking Berhad (GTD by Wells Fargo Bank N.A.),
0.460%, 10–12–16		4,000		3,999
Medtronic Global Holdings SCA:
0.720%, 10–3–16		7,000		7,000
0.740%, 11–14–16		5,000		4,995
NBCUniversal Enterprise, Inc.:
0.790%, 10–19–16		10,000		9,996
0.830%, 11–9–16		5,000		4,995
Pricoa Short Term Funding LLC:
0.570%, 11–4–16		10,000		9,994
0.600%, 11–10–16		15,000		14,990
Regents of the University of California (The),
0.580%, 10–18–16		10,000		9,997
River Fuel Co. #2, Inc. (GTD by Bank of Nova Scotia),
0.580%, 10–31–16		5,000		4,998
River Fuel Funding Co. #3, Inc. (GTD by Bank of Nova Scotia),
0.500%, 10–14–16		7,000		6,999
San Francisco City and Cnty, Pub Util Comnty Water Rev, Series A1T (Taxable), (GTD by Royal Bank of Canada),
0.760%, 10–18–16		7,000		7,000
United Technologies Corp.,
0.810%, 10–27–16		8,010		8,005
Virginia Electric and Power Co.:
0.700%, 10–4–16		5,000		5,000
0.600%, 10–6–16		15,000		14,998
				165,150
Master Note – 0.1%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (E)		2,223		2,223

SHORT-TERM SECURITIES	Principal		Value
Municipal Obligations – 2.4%
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.),
0.840%, 10–7–16 (E)	$	5,400	$	5,400
CA Infra and Econ Dev Bank, Var Rate Demand Rfdg Rev Bonds (LA Cnty Mus of Nat Hist Fndtn), Ser 2008A (GTD by Wells Fargo Bank N.A.),
0.780%, 10–1–16 (E)		4,900		4,900
Dev Auth of Monroe Cnty, Pollutn Ctl Rev Bonds (GA Power Co. Plant Scherer Proj), First Ser 2008 (GTD by Georgia Power Co.),
0.930%, 10–1–16 (E)		10,000		10,000
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008A (GTD by U.S. Bank N.A.),
0.800%, 10–7–16 (E)		5,000		5,000
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2007D (GTD by Chevron Corp.),
0.830%, 10–1–16 (E)		18,000		18,000
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser A (Taxable), (GTD by Wells Fargo Bank N.A.),
0.780%, 10–7–16		8,000		8,000
Muni Impvt Corp. of Los Angeles, Lease Rev, Ser B-1 (Taxable), (GTD by Wells Fargo Bank N.A.),
0.750%, 10–19–16		8,300		8,299
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.),
0.780%, 10–7–16 (E)		5,500		5,500
				65,099
United States Government Agency Obligations – 0.1%
Overseas Private Investment Corp. (GTD by U.S. Government):
0.760%, 10–5–16 (E)		736		737
0.800%, 10–5–16 (E)		3,275		3,275
				4,012
TOTAL SHORT-TERM SECURITIES – 8.8%			$	236,484
(Cost: $236,488)
TOTAL INVESTMENT SECURITIES – 100.8%			$	2,716,251
(Cost: $2,490,076)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.8)%				(21,552	)
NET ASSETS – 100.0%			$	2,694,699

2016 SEMIANNUAL REPORT 19

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Notes to Schedule of Investments

(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. At September 30, 2016 the total value of these securities amounted to $201,980 or 7.5% of net assets.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.

(D) Rate shown is the yield to maturity at September 30, 2016.

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	1,437,130	$	—	$	—
Preferred Stocks		147,120		14,562		—
Corporate Debt Securities		—		791,663		—
Loans		—		—		5,290
United States Government Agency Obligations		—		382		—
United States Government Obligations		—		83,620		—
Short-Term Securities		—		236,484		—
Total	$	1,584,250	$	1,126,711	$	5,290

During the period ended September 30, 2016, there were no transfers between any levels.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

20 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY ENERGY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	99.1%
Energy	95.6%
Materials	1.9%
Information Technology	1.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Lipper Rankings

Category: Lipper Natural Resources Funds	Rank	Percentile
1 Year	30/90		33
3 Year	32/78		41
5 Year	19/65		29
10 Year	13/50		26

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	96.0%
United States	94.0%
Other North America	2.0%
Europe	3.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Continental Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Schlumberger Ltd.	United States	Energy	Oil & Gas Equipment & Services
Parsley Energy, Inc., Class A	United States	Energy	Oil & Gas Exploration & Production
Pioneer Natural Resources Co.	United States	Energy	Oil & Gas Exploration & Production
Halliburton Co.	United States	Energy	Oil & Gas Equipment & Services
U.S. Silica Holdings, Inc.	United States	Energy	Oil & Gas Equipment & Services
EOG Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Anadarko Petroleum Corp.	United States	Energy	Oil & Gas Exploration & Production
Cimarex Energy Co.	United States	Energy	Oil & Gas Exploration & Production
Newfield Exploration Co.	United States	Energy	Oil & Gas Exploration & Production

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 21

SCHEDULE OF INVESTMENTS IVY ENERGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Energy
Integrated Oil & Gas – 5.0%
Chevron Corp.		47	$	4,786
Exxon Mobil Corp.		135		11,783
Royal Dutch Shell plc, Class A (A)		195		4,855
Suncor Energy, Inc.		181		5,031
				26,455
Oil & Gas Drilling – 2.5%
Patterson-UTI Energy, Inc.		583		13,043
Oil & Gas Equipment & Services – 26.2%
Baker Hughes, Inc.		357		18,010
Core Laboratories N.V.		103		11,604
FMC Technologies, Inc. (B)		89		2,645
Forum Energy Technologies, Inc. (B)		627		12,446
Halliburton Co.		518		23,262
RPC, Inc. (B)		663		11,134
Schlumberger Ltd.		315		24,802
Superior Energy Services, Inc.		774		13,863
U.S. Silica Holdings, Inc.		471		21,946
				139,712
Oil & Gas Exploration & Production – 53.6%
Anadarko Petroleum Corp.		337		21,360
Cimarex Energy Co.		159		21,358
Concho Resources, Inc. (B)		144		19,723
Continental Resources, Inc. (B)		490		25,481
Devon Energy Corp.		182		8,032
Diamondback Energy, Inc. (B)		148		14,302
EOG Resources, Inc.		224		21,639
Gulfport Energy Corp. (B)		211		5,948

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Exploration & Production (Continued)
Laredo Petroleum Holdings, Inc. (B)		743	$	9,582
Marathon Oil Corp.		735		11,615
Newfield Exploration Co. (B)		471		20,465
Noble Energy, Inc.		72		2,570
Oasis Petroleum LLC (B)		1,268		14,541
Parsley Energy, Inc., Class A (B)		722		24,182
Pioneer Natural Resources Co.		127		23,615
Range Resources Corp.		162		6,285
RSP Permian, Inc. (B)		436		16,902
Whiting Petroleum Corp. (B)		1,099		9,606
WPX Energy, Inc. (B)		634		8,366
				285,572
Oil & Gas Refining & Marketing – 2.1%
Marathon Petroleum Corp.		55		2,245
MPLX L.P.		177		5,995
Phillips 66		33		2,661
				10,901
Oil & Gas Storage & Transportation – 6.2%
Enbridge, Inc.		121		5,366
Enterprise Products Partners L.P.		291		8,048
Phillips 66 Partners L.P.		122		5,932
Shell Midstream Partners L.P.		70		2,233
Tallgrass Energy GP L.P., Class A		409		9,842
Valero Energy Partners L.P.		40		1,741
				33,162
Total Energy – 95.6%				508,845

COMMON STOCKS (Continued)	Shares		Value
Information Technology
Data Processing & Outsourced Services – 1.6%
Wright Express Corp. (B)		79	$	8,572
Total Information Technology – 1.6%				8,572
Materials
Specialty Chemicals – 1.9%
Flotek Industries, Inc. (B)(C)		142		2,068
Flotek Industries, Inc. (B)		558		8,120
				10,188
Total Materials – 1.9%				10,188
TOTAL COMMON STOCKS – 99.1%			$	527,605
(Cost: $439,945)
SHORT-TERM SECURITIES	Principal
Master Note – 1.1%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (D)	$	5,642		5,642
TOTAL SHORT-TERM SECURITIES – 1.1%			$	5,642
(Cost: $5,642)
TOTAL INVESTMENT SECURITIES – 100.2%			$	533,247
(Cost: $445,587)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)%				(850	)
NET ASSETS – 100.0%			$	532,397

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. At September 30, 2016 the total value of these securities amounted to $2,068 or 0.4% of net assets.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	527,605	$	—	$	—
Short-Term Securities		—		5,642		—
Total	$	527,605	$	5,642	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

22 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY ENERGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Country Diversification

(as a % of net assets)
United States	94.0%
Netherlands	2.2%
Canada	2.0%
Other Countries	0.9%
Other+	0.9%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 23

PORTFOLIO HIGHLIGHTS IVY GLOBAL NATURAL RESOURCES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	94.6%
Energy	66.9%
Materials	23.1%
Industrials	4.6%
Utilities	0.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	5.4%

Lipper Rankings

Category: Lipper Global Natural Resources Funds	Rank	Percentile
1 Year	105/137		77
3 Year	65/130		50
5 Year	49/115		43
10 Year	44/55		79

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	84.6%
United States	79.1%
Canada	5.5%
Europe	10.0%
United Kingdom	9.0%
Other Europe	1.0%
Pacific Basin	0.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	5.4%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Halliburton Co.	United States	Energy	Oil & Gas Equipment & Services
Schlumberger Ltd.	United States	Energy	Oil & Gas Equipment & Services
EOG Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Concho Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Chevron Corp.	United States	Energy	Integrated Oil & Gas
BHP Billiton plc	United Kingdom	Materials	Diversified Metals & Mining
Enterprise Products Partners L.P.	United States	Energy	Oil & Gas Storage & Transportation
Pioneer Natural Resources Co.	United States	Energy	Oil & Gas Exploration & Production
Cimarex Energy Co.	United States	Energy	Oil & Gas Exploration & Production
Flowserve Corp.	United States	Industrials	Industrial Machinery

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

24 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL NATURAL RESOURCES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Canada
Energy – 2.0%
Suncor Energy, Inc.		529	$	14,679
Materials – 3.5%
Potash Corp. of Saskatchewan, Inc.		1,175		19,174
West Fraser Timber Co. Ltd.		222		6,835
				26,009
Total Canada – 5.5%				40,688
China
Materials – 0.0%
China Metal Recycling (Holdings) Ltd. (A)		30,000		—
Total China – 0.0%				—
Netherlands
Energy – 1.0%
Core Laboratories N.V.		62		6,976
Total Netherlands – 1.0%				6,976
United Kingdom
Materials – 9.0%
BHP Billiton plc		1,774		26,723
Randgold Resources Ltd. ADR		200		19,985
Rio Tinto plc		596		19,903
				66,611
Total United Kingdom – 9.0%				66,611
United States
Energy – 63.9%
Baker Hughes, Inc.		248		12,514
Cabot Oil & Gas Corp.		625		16,122
Chevron Corp.		268		27,557
Cimarex Energy Co.		181		24,294
Concho Resources, Inc. (A)		209		28,713
Continental Resources, Inc. (A)		315		16,360
Diamondback Energy, Inc. (A)		100		9,611

COMMON STOCKS (Continued)	Shares		Value
Energy (Continued)
Enterprise Products Partners L.P.		921	$	25,457
EOG Resources, Inc.		349		33,757
EQT Midstream Partners L.P.		95		7,268
Exxon Mobil Corp.		214		18,717
Halliburton Co.		1,099		49,319
Helmerich & Payne, Inc.		237		15,953
Magellan Midstream Partners L.P.		303		21,420
Marathon Petroleum Corp.		186		7,554
MPLX L.P.		216		7,300
Noble Energy, Inc.		528		18,855
Patterson-UTI Energy, Inc.		848		18,967
Phillips 66		156		12,550
Pioneer Natural Resources Co.		134		24,896
RPC, Inc. (A)		1,193		20,047
Schlumberger Ltd.		549		43,194
Shell Midstream Partners L.P.		119		3,831
U.S. Silica Holdings, Inc.		109		5,082
Valero Energy Partners L.P.		36		1,555
				470,893
Industrials – 4.6%
Flowserve Corp.		467		22,516
Union Pacific Corp.		120		11,665
				34,181
Materials – 8.2%
Air Products and Chemicals, Inc.		120		18,048
Dow Chemical Co. (The)		403		20,872
Sherwin-Williams Co. (The)		52		14,317
Southern Copper Corp.		282		7,410
				60,647
Total United States – 76.7%				565,721
TOTAL COMMON STOCKS – 92.2%			$	679,996
(Cost: $630,527)
INVESTMENT FUNDS
United States – 2.4%
SPDR Gold Trust (A)		143		18,004
TOTAL INVESTMENT FUNDS – 2.4%			$	18,004
(Cost: $16,971)

PREFERRED STOCKS	Shares		Value
United States
Utilities – 0.0%
Konarka Technologies, Inc., 8.000%, Convertible (A)(B)		3,500	$	—
Total United States – 0.0%				—
TOTAL PREFERRED STOCKS – 0.0%			$	—
(Cost: $10,850)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 5.2%
BorgWarner, Inc.
0.700%, 10–6–16	$	10,000		9,999
Kroger Co. (The)
0.630%, 10–3–16		10,000		9,999
McCormick & Co., Inc.
0.500%, 10–3–16		5,000		5,000
St. Jude Medical, Inc.
0.700%, 10–3–16		3,562		3,562
Wisconsin Gas LLC
0.460%, 10–7–16		10,000		9,999
				38,559
Master Note – 0.4%
Toyota Motor Credit Corp.
0.600%, 10–5–16 (D)		2,683		2,683
TOTAL SHORT-TERM SECURITIES – 5.6%			$	41,242
(Cost: $41,243)
TOTAL INVESTMENT SECURITIES – 100.2%			$	739,242
(Cost: $699,591)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)%				(1,569	)
NET ASSETS – 100.0%			$	737,673

Notes to Schedule of Investments

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

(B) Restricted security. At September 30, 2016, the Fund owned the following restricted security:

Security	Acquisition Date(s)	Shares	Cost		Market Value
Konarka Technologies, Inc., 8.000%, Convertible	8–31–07	3,500	$	10,850	$    —

The total value of this security represented 0.0% of net assets at September 30, 2016.

(C) Rate shown is the yield to maturity at September 30, 2016.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

2016 SEMIANNUAL REPORT 25

SCHEDULE OF INVESTMENTS IVY GLOBAL NATURAL RESOURCES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		32,474	U.S. Dollar		42,592	10–26–16	UBS AG	$	481	$	—
Canadian Dollar		29,008	U.S. Dollar		22,281	10–26–16	UBS AG		167		—
								$	648	$	—

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	679,996	$	—	$	—
Investment Funds		18,004		—		—
Preferred Stocks		—		—		—
Short-Term Securities		—		41,242		—
Total	$	698,000	$	41,242	$	—
Forward Foreign Currency Contracts	$	—	$	648	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

Market Sector Diversification

(as a % of net assets)
Energy	66.9%
Materials	23.1%
Industrials	4.6%
Utilities	0.0%
Other+	5.4%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

26 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY LASALLE GLOBAL REAL ESTATE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	98.1%
Real Estate	98.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.9%

Lipper Rankings

Category: Lipper Global Real Estate Funds	Rank	Percentile
1 Year	167/178		94
3 Year	113/134		84

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	56.3%
United States	54.4%
Other North America	1.9%
Pacific Basin	27.0%
Japan	12.7%
Hong Kong	9.4%
Australia	3.9%
Other Pacific Basin	1.0%
Europe	14.8%
United Kingdom	5.8%
Other Europe	9.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.9%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Simon Property Group, Inc.	United States	Real Estate	Retail REITs
Equity Residential	United States	Real Estate	Residential REITs
Mitsui Fudosan Co. Ltd.	Japan	Real Estate	Diversified Real Estate Activities
Mitsubishi Estate Co. Ltd.	Japan	Real Estate	Diversified Real Estate Activities
Sun Hung Kai Properties Ltd.	Hong Kong	Real Estate	Diversified Real Estate Activities
Welltower, Inc.	United States	Real Estate	Health Care REITs
AvalonBay Communities, Inc.	United States	Real Estate	Residential REITs
Boston Properties, Inc.	United States	Real Estate	Office REITs
ProLogis	United States	Real Estate	Industrial REITs
Camden Property Trust	United States	Real Estate	Residential REITs

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 27

SCHEDULE OF INVESTMENTS IVY LASALLE GLOBAL REAL ESTATE FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Real Estate – 3.9%
GPT Group		50	$	194
Mirvac Group		163		279
Scentre Group		100		361
Westfield Corp.		77		576
				1,410
Total Australia – 3.9%				1,410
Austria
Real Estate – 0.4%
Buwog AG		6		154
Total Austria – 0.4%				154
Canada
Real Estate – 1.7%
Canadian Apartment Properties REIT		2		44
Canadian REIT		3		104
Dream Office Real Estate Investment Trust		1		13
H&R Real Estate Investment Trust		13		219
RioCan		7		146
SmartREIT		3		72
				598
Total Canada – 1.7%				598
France
Real Estate – 3.4%
Gecina		1		212
Mercialys S.A.		6		153
Unibail-Rodamco		3		853
				1,218
Total France – 3.4%				1,218
Germany
Real Estate – 2.3%
Ado Properties S.A.		4		153
alstria office AG		10		142
Deutsche EuroShop AG		2		103
Deutsche Wohnen AG		12		427
				825
Total Germany – 2.3%				825
Hong Kong
Real Estate – 9.4%
Hongkong Land Holdings Ltd.		74		525
Link (The)		96		702
Sun Hung Kai Properties Ltd.		102		1,540
Swire Properties Ltd.		209		611
				3,378
Total Hong Kong – 9.4%				3,378

COMMON STOCKS (Continued)	Shares			Value
Japan
Real Estate – 12.7%
AEON Mall Co. Ltd.		2		$	30
Daiwa Office Investment Corp.		—	*		208
Global One Corp.		—	*		88
Ichigo Hotel Investment Corp.		—	*		106
Kenedix Office Investment Corp.		—	*		227
Mitsubishi Estate Co. Ltd.		83			1,545
Mitsui Fudosan Co. Ltd.		75			1,580
Mitsui Fudosan Logistics Park, Inc. (A)		—	*		151
ORIX JREIT, Inc.		—	*		168
Sumitomo Realty & Development Co. Ltd.		8			205
Tokyu, Inc.		—	*		243
					4,551
Total Japan – 12.7%					4,551
Mexico
Real Estate – 0.2%
Prologis Property Mexico S.A. de C.V.		33			54
Total Mexico – 0.2%					54
Netherlands
Real Estate – 0.2%
Vastned Retail N.V.		2			80
Total Netherlands – 0.2%					80
Norway
Real Estate – 0.4%
Entra ASA		14			160
Total Norway – 0.4%					160
Singapore
Real Estate – 1.0%
CapitaCommercial Trust		45			53
CapitaLand Ltd.		80			186
Global Logistic Properties Ltd.		39			53
Mapletree Commercial Trust		49			58
					350
Total Singapore – 1.0%					350
Spain
Real Estate – 0.7%
Axiare Patrimonio SOCIMI S.A.		4			50
Merlin Properties Socimi S.A.		18			210
					260
Total Spain – 0.7%					260
Sweden
Real Estate – 1.1%
Fabege AB		13			241

COMMON STOCKS (Continued)	Shares		Value
Real Estate (Continued)
Hufvudstaden AB		8	$	140
				381
Total Sweden – 1.1%				381
Switzerland
Real Estate – 0.5%
PSP Swiss Property Ltd., Registered Shares		2		165
Total Switzerland – 0.5%				165
United Kingdom
Real Estate – 5.8%
Big Yellow Group plc		13		135
Derwent London plc		12		421
Great Portland Estates plc		16		131
Hammerson plc		38		291
Land Securities Group plc		58		796
LondonMetric Property plc		85		177
Shaftesbury plc		9		109
				2,060
Total United Kingdom – 5.8%				2,060
United States
Real Estate – 54.4%
Acadia Realty Trust		4		145
American Assets Trust, Inc.		1		63
American Campus Communities, Inc.		2		77
American Tower Corp., Class A		6		704
AvalonBay Communities, Inc.		6		1,120
Boston Properties, Inc.		8		1,092
Brixmor Property Group, Inc.		17		464
Camden Property Trust		11		899
Columbia Property Trust, Inc.		3		62
Corporate Office Properties Trust		10		295
Cousins Properties, Inc.		9		99
Crown Castle International Corp.		2		181
CubeSmart		21		563
DuPont Fabros Technology, Inc.		6		245
EastGroup Properties, Inc.		2		122
Equinix, Inc.		1		232
Equity Residential		26		1,659
Federal Realty Investment Trust		1		189
General Growth Properties, Inc.		21		593
Healthcare Trust of America, Inc., Class A		5		163
Host Hotels & Resorts, Inc.		10		158
Hudson Pacific Properties, Inc.		9		288
LaSalle Hotel Properties		16		372
Life Storage, Inc.		4		367
Paramount Group, Inc.		16		267
ProLogis		18		952
Public Storage, Inc.		3		588
Retail Properties of America, Inc.		17		288
RLJ Lodging Trust		15		309
Senior Housing Properties Trust		11		248
Simon Property Group, Inc.		13		2,634
SL Green Realty Corp.		4		464

28 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY LASALLE GLOBAL REAL ESTATE FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Real Estate (Continued)
Spirit Realty Capital, Inc.		28	$	379
Sunstone Hotel Investors, Inc.		23		290
Taubman Centers, Inc.		5		385
VEREIT, Inc.		20		204
Vornado Realty Trust		9		897
Welltower, Inc.		19		1,456
				19,513
Total United States – 54.4%				19,513
TOTAL COMMON STOCKS – 98.1%			$	35,157
(Cost: $32,355)

SHORT-TERM SECURITIES	Principal		Value
Master Note – 0.8%
Toyota Motor Credit Corp.
0.600%, 10–5–16 (B)	$	289	$	289
TOTAL SHORT-TERM SECURITIES – 0.8%			$	289
(Cost: $289)
TOTAL INVESTMENT SECURITIES – 98.9%			$	35,446
(Cost: $32,644)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.1%				395
NET ASSETS – 100.0%			$	35,841

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, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	35,157	$	—	$	—
Short-Term Securities		—		289		—
Total	$	35,157	$	289	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trusts

Market Sector Diversification

(as a % of net assets)
Real Estate	98.1%
Other+	1.9%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 29

PORTFOLIO HIGHLIGHTS IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	97.4%
Real Estate	97.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.6%

Lipper Rankings

Category: Lipper Global Real Estate Funds	Rank	Percentile
1 Year	17/178		10
3 Year	7/134		6

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	56.6%
United States	54.9%
Other North America	1.7%
Pacific Basin	25.8%
Japan	9.5%
Hong Kong	9.5%
Australia	5.6%
Other Pacific Basin	1.2%
Europe	15.0%
United Kingdom	6.0%
France	3.5%
Other Europe	5.5%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.6%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Simon Property Group, Inc.	United States	Real Estate	Retail REITs
Equity Residential	United States	Real Estate	Residential REITs
Welltower, Inc.	United States	Real Estate	Health Care REITs
Boston Properties, Inc.	United States	Real Estate	Office REITs
Swire Properties Ltd.	Hong Kong	Real Estate	Real Estate Operating Companies
Hongkong Land Holdings Ltd.	Hong Kong	Real Estate	Real Estate Operating Companies
AvalonBay Communities, Inc.	United States	Real Estate	Residential REITs
Public Storage, Inc.	United States	Real Estate	Specialized REITs
ProLogis	United States	Real Estate	Industrial REITs
Camden Property Trust	United States	Real Estate	Residential REITs

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

30 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND
(in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares			Value
Australia
Real Estate – 5.6%
GPT Group		501		$	1,939
Scentre Group		659			2,371
Westfield Corp.		342			2,548
					6,858
Total Australia – 5.6%					6,858
Canada
Real Estate – 1.7%
Allied Properties		4			110
Boardwalk		2			92
Canadian REIT		19			667
RioCan		36			746
SmartREIT		17			457
					2,072
Total Canada – 1.7%					2,072
France
Real Estate – 3.5%
Gecina		5			732
Mercialys S.A.		26			628
Unibail-Rodamco		11			2,996
					4,356
Total France – 3.5%					4,356
Germany
Real Estate – 2.9%
Ado Properties S.A.		15			596
alstria office AG		67			917
Deutsche EuroShop AG		13			593
Deutsche Wohnen AG		36			1,308
LEG Immobilien AG		2			222
					3,636
Total Germany – 2.9%					3,636
Hong Kong
Real Estate – 9.5%
Hongkong Land Holdings Ltd.		641			4,548
Link (The)		352			2,587
Swire Properties Ltd.		1,560			4,565
					11,700
Total Hong Kong – 9.5%					11,700
Japan
Real Estate – 9.5%
Activia Properties, Inc.		—	*		503
Comforia Residential, Inc.		—	*		283
Daiwa Office Investment Corp.		—	*		1,586
Hulic, Inc.		1			1,037
Kenedix Office Investment Corp.		—	*		2,427

COMMON STOCKS (Continued)	Shares			Value
Real Estate (Continued)
Mitsui Fudosan Logistics Park, Inc. (A)		—	*	$	466
Nippon Building Fund, Inc.		—	*		1,681
ORIX JREIT, Inc.		1			2,595
Sekisui House REIT, Inc.		—	*		279
Tokyu, Inc.		1			927
					11,784
Total Japan – 9.5%					11,784
Netherlands
Real Estate – 0.6%
Vastned Retail N.V.		18			728
Total Netherlands – 0.6%					728
Singapore
Real Estate – 1.2%
CapitaCommercial Trust		402			469
CapitaMall Trust		288			458
Mapletree Commercial Trust		520			610
					1,537
Total Singapore – 1.2%					1,537
Spain
Real Estate – 0.6%
Axiare Patrimonio SOCIMI S.A.		57			750
Total Spain – 0.6%					750
Sweden
Real Estate – 0.9%
Hufvudstaden AB		67			1,153
Total Sweden – 0.9%					1,153
Switzerland
Real Estate – 0.5%
PSP Swiss Property Ltd., Registered Shares		6			590
Total Switzerland – 0.5%					590
United Kingdom
Real Estate – 6.0%
Big Yellow Group plc		44			441
Derwent London plc		46			1,545
Hammerson plc		135			1,029
Land Securities Group plc		207			2,832
LondonMetric Property plc		367			761
Shaftesbury plc		58			733
					7,341
Total United Kingdom – 6.0%					7,341

COMMON STOCKS (Continued)	Shares		Value
United States
Real Estate – 54.9%
Acadia Realty Trust		12	$	426
American Assets Trust, Inc.		15		661
American Campus Communities, Inc.		21		1,054
AvalonBay Communities, Inc.		22		3,839
Boston Properties, Inc.		36		4,931
Brixmor Property Group, Inc.		57		1,589
Camden Property Trust		37		3,097
Corporate Office Properties Trust		38		1,066
Cousins Properties, Inc.		31		323
CubeSmart		71		1,932
EastGroup Properties, Inc.		15		1,071
Equity Residential		98		6,318
Federal Realty Investment Trust		10		1,505
General Growth Properties, Inc.		81		2,233
Healthcare Trust of America, Inc., Class A		23		734
Hudson Pacific Properties, Inc.		36		1,181
Life Storage, Inc.		14		1,266
National Retail Properties, Inc.		23		1,154
Paramount Group, Inc.		99		1,623
ProLogis		63		3,392
Public Storage, Inc.		17		3,786
Regency Centers Corp.		12		942
Retail Properties of America, Inc.		58		972
Senior Housing Properties Trust		35		800
Simon Property Group, Inc.		47		9,775
Spirit Realty Capital, Inc.		87		1,158
Taubman Centers, Inc.		23		1,732
Ventas, Inc.		12		814
Vornado Realty Trust		31		3,091
Welltower, Inc.		71		5,293
				67,758
Total United States – 54.9%				67,758
TOTAL COMMON STOCKS – 97.4%			$	120,263
(Cost: $109,196)
SHORT-TERM SECURITIES	Principal
Master Note – 2.0%
Toyota Motor Credit Corp.
0.600%, 10–5–16 (B)	$	2,460		2,460
TOTAL SHORT-TERM SECURITIES – 2.0%			$	2,460
(Cost: $2,460)
TOTAL INVESTMENT SECURITIES – 99.4%			$	122,723
(Cost: $111,656)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.6%				762
NET ASSETS – 100.0%			$	123,485

2016 SEMIANNUAL REPORT 31

SCHEDULE OF INVESTMENTS IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND
(in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

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, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	120,263	$	—	$	—
Short-Term Securities		—		2,460		—
Total	$	120,263	$	2,460	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trusts

Market Sector Diversification

(as a % of net assets)
Real Estate	97.4%
Other+	2.6%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

32 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY REAL ESTATE SECURITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	98.0%
Real Estate	98.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.0%

Lipper Rankings

Category: Lipper Real Estate Funds	Rank	Percentile
1 Year	180/264		68
3 Year	100/231		44
5 Year	106/202		53
10 Year	93/132		70

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.	Real Estate	Retail REITs
Public Storage, Inc.	Real Estate	Specialized REITs
ProLogis	Real Estate	Industrial REITs
AvalonBay Communities, Inc.	Real Estate	Residential REITs
Equinix, Inc.	Real Estate	Specialized REITs
Welltower, Inc.	Real Estate	Health Care REITs
Vornado Realty Trust	Real Estate	Office REITs
General Growth Properties, Inc.	Real Estate	Retail REITs
Ventas, Inc.	Real Estate	Health Care REITs
Boston Properties, Inc.	Real Estate	Office REITs

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 33

SCHEDULE OF INVESTMENTS IVY REAL ESTATE SECURITIES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Real Estate
Diversified REITs – 3.1%
Liberty Property Trust		230	$	9,276
Spirit Realty Capital, Inc.		306		4,072
STORE Capital Corp.		307		9,033
				22,381
Health Care REITs – 10.3%
Care Capital Properties, Inc.		84		2,380
HCP, Inc.		294		11,142
Physicians Realty Trust		353		7,593
Ventas, Inc.		282		19,912
Welltower, Inc.		438		32,749
				73,776
Hotel & Resort REITs – 3.0%
Host Hotels & Resorts, Inc.		833		12,975
Pebblebrook Hotel Trust		96		2,559
RLJ Lodging Trust		144		3,024
Sunstone Hotel Investors, Inc.		226		2,896
				21,454
Industrial REITs – 9.0%
Duke Realty Corp.		555		15,163
First Industrial Realty Trust, Inc.		503		14,186
ProLogis		653		34,948
				64,297
Office REITs – 14.3%
Alexandria Real Estate Equities, Inc.		173		18,806
Boston Properties, Inc.		144		19,558
Brandywine Realty Trust		471		7,360
Highwoods Properties, Inc.		204		10,653
Kilroy Realty Corp.		187		12,952
SL Green Realty Corp.		58		6,274

COMMON STOCKS (Continued)	Shares		Value
Office REITs (Continued)
Vornado Realty Trust		271	$	27,378
				102,981
Residential REITs – 18.5%
American Campus Communities, Inc.		317		16,100
Apartment Investment and Management Co., Class A		46		2,092
AvalonBay Communities, Inc.		195		34,686
Camden Property Trust		125		10,493
Education Realty Trust, Inc.		205		8,826
Equity Lifestyle Properties, Inc.		82		6,295
Equity Residential		232		14,936
Essex Property Trust, Inc.		83		18,567
Mid-America Apartment Communities, Inc.		74		6,918
Sun Communities, Inc.		180		14,103
				133,016
Retail REITs – 22.4%
Brixmor Property Group, Inc.		414		11,494
DDR Corp.		689		12,008
Federal Realty Investment Trust		49		7,520
General Growth Properties, Inc.		755		20,850
Kimco Realty Corp.		550		15,912
Macerich Co. (The)		78		6,292
Pennsylvania Real Estate Investment Trust		214		4,933
Simon Property Group, Inc.		349		72,158
Weingarten Realty Investors		246		9,577
				160,744
Specialized REITs – 17.4%
CubeSmart		297		8,086
CyrusOne, Inc.		292		13,871

COMMON STOCKS (Continued)	Shares		Value
Specialized REITs (Continued)
Digital Realty Trust, Inc.		133	$	12,888
Equinix, Inc.		96		34,624
Extra Space Storage, Inc.		107		8,505
Life Storage, Inc.		115		10,246
Public Storage, Inc.		163		36,416
				124,636
Total Real Estate – 98.0%				703,285
TOTAL COMMON STOCKS – 98.0%			$	703,285
(Cost: $489,846)
SHORT-TERM SECURITIES	Principal
Commercial Paper (A) – 1.3%
J.M. Smucker Co. (The),
0.700%, 10–3–16	$	9,288		9,288
Master Note – 0.4%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (B)		3,083		3,083
TOTAL SHORT-TERM SECURITIES – 1.7%			$	12,371
(Cost: $12,371)
TOTAL INVESTMENT SECURITIES – 99.7%			$	715,656
(Cost: $502,217)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3%				2,251
NET ASSETS – 100.0%			$	717,907

Notes to Schedule of Investments

(A) Rate shown is the yield to maturity at September 30, 2016.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	703,285	$	—	$	—
Short-Term Securities		—		12,371		—
Total	$	703,285	$	12,371	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trusts

See Accompanying Notes to Financial Statements.

34 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY SCIENCE AND TECHNOLOGY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	98.6%
Information Technology	72.2%
Health Care	16.7%
Consumer Discretionary	3.0%
Telecommunication Services	2.0%
Real Estate	2.0%
Utilities	1.1%
Industrials	0.9%
Materials	0.6%
Consumer Staples	0.1%
Warrants	0.0%
Purchased Options	0.0%
Bonds	0.6%
Corporate Debt Securities	0.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.8%

Lipper Rankings

Category: Lipper Science & Technology Funds	Rank	Percentile
1 Year	151/161		94
3 Year	140/148		94
5 Year	96/141		68
10 Year	38/117		33

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	81.5%
United States	81.5%
Europe	7.1%
Netherlands	3.7%
Other Europe	3.4%
Pacific Basin	5.7%
India	4.2%
Other Pacific Basin	1.5%
Other	3.6%
Israel	3.6%
Bahamas/Caribbean	1.3%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options	0.8%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Micron Technology, Inc.	United States	Information Technology	Semiconductors
Alliance Data Systems Corp.	United States	Information Technology	Data Processing & Outsourced Services
Aspen Technology, Inc.	United States	Information Technology	Application Software
Euronet Worldwide, Inc.	United States	Information Technology	Data Processing & Outsourced Services
WNS (Holdings) Ltd. ADR	India	Information Technology	Data Processing & Outsourced Services
Microsemi Corp.	United States	Information Technology	Semiconductors
Microsoft Corp.	United States	Information Technology	Systems Software
Vertex Pharmaceuticals, Inc.	United States	Health Care	Biotechnology
ACI Worldwide, Inc.	United States	Information Technology	Application Software
NXP Semiconductors N.V.	Netherlands	Information Technology	Semiconductors

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 35

SCHEDULE OF INVESTMENTS IVY SCIENCE AND TECHNOLOGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Consumer Electronics – 3.0%
Garmin Ltd.		1,492	$	71,794
Harman International Industries, Inc.		651		54,945
				126,739
Total Consumer Discretionary – 3.0%				126,739
Consumer Staples
Agricultural Products – 0.1%
Arcadia Biosciences, Inc. (A)(B)		3,127		6,004
Total Consumer Staples – 0.1%				6,004
Health Care
Biotechnology – 7.9%
Evogene Ltd. (A)(B)		1,852		11,815
FibroGen, Inc. (A)		993		20,545
Isis Pharmaceuticals, Inc. (A)		3,217		117,871
Kite Pharma, Inc. (A)		371		20,741
Seres Therapeutics, Inc. (A)		196		2,414
Vertex Pharmaceuticals, Inc. (A)		1,806		157,457
				330,843
Health Care Equipment – 0.4%
Avinger, Inc. (A)(B)		3,395		16,193
Health Care Facilities – 1.4%
Tenet Healthcare Corp. (A)		2,672		60,550
Health Care Technology – 3.6%
Cerner Corp. (A)		2,450		151,257
Managed Health Care – 0.9%
Anthem, Inc.		309		38,683
Pharmaceuticals – 2.5%
Teva Pharmaceutical Industries Ltd. ADR		2,261		104,038
Total Health Care – 16.7%				701,564
Industrials
Building Products – 0.8%
Advanced Drainage Systems, Inc.		1,416		34,081
Construction & Engineering – 0.1%
Abengoa S.A., Class B (A)(C)		24,387		5,890
Total Industrials – 0.9%				39,971
Information Technology
Application Software – 11.7%
ACI Worldwide, Inc. (A)(B)		8,116		157,297
Aspen Technology, Inc. (A)(B)		4,019		188,031
Globant S.A. (A)		1,036		43,619
Mobileye N.V. (A)		788		33,551
Silver Spring Networks, Inc. (A)(B)		4,810		68,202
				490,700

COMMON STOCKS (Continued)	Shares		Value
Communications Equipment – 0.5%
Nokia Corp., Series A ADR		3,857	$	22,334
Data Processing & Outsourced Services – 13.7%
Alliance Data Systems Corp. (A)		884		189,537
Euronet Worldwide, Inc. (A)(D)		2,285		187,008
QIWI plc ADR		1,402		20,527
WNS (Holdings) Ltd. ADR (A)(B)		5,887		176,302
				573,374
Electronic Components – 2.1%
Universal Display Corp. (A)		1,596		88,620
Internet Software & Services – 10.4%
Alibaba Group Holding Ltd. ADR (A)		609		64,437
Alphabet, Inc., Class A (A)		113		90,457
Alphabet, Inc., Class C (A)		147		113,906
Facebook, Inc., Class A (A)		1,024		131,374
Pandora Media, Inc. (A)		2,499		35,814
				435,988
IT Consulting & Other Services – 4.0%
Acxiom Corp. (A)(B)		4,483		119,465
CSRA, Inc.		1,079		29,025
Virtusa Corp. (A)		764		18,852
				167,342
Semiconductor Equipment – 1.8%
Nanometrics, Inc. (A)(B)		1,254		28,016
Photronics, Inc. (A)(B)		4,528		46,687
				74,703
Semiconductors – 22.6%
Advanced Micro Devices, Inc. (A)		3,403		23,517
Cypress Semiconductor Corp.		7,654		93,067
Dialog Semiconductor plc (A)(C)		1,327		51,157
Marvell Technology Group Ltd.		4,011		53,226
Micron Technology, Inc. (A)		12,464		221,603
Microsemi Corp. (A)		4,184		175,638
NXP Semiconductors N.V. (A)		1,514		154,423
Rambus, Inc. (A)(B)		6,452		80,649
Semtech Corp. (A)(B)		3,356		93,051
				946,331
Systems Software – 4.2%
Microsoft Corp.		3,029		174,493
Technology Hardware, Storage & Peripherals – 1.2%
Apple, Inc.		237		26,838
Hewlett-Packard Co.		1,615		25,079
				51,917
Total Information Technology – 72.2%				3,025,802
Materials
Commodity Chemicals – 0.5%
BioAmber, Inc. (A)(B)		4,711		19,973

COMMON STOCKS (Continued)	Shares		Value
Fertilizers & Agricultural Chemicals – 0.1%
Marrone Bio Innovations, Inc. (A)(B)		2,608	$	4,485
Total Materials – 0.6%				24,458
Real Estate
Specialized REITs – 2.0%
QTS Realty Trust, Inc., Class A		1,564		82,652
Total Real Estate – 2.0%				82,652
Telecommunication Services
Alternative Carriers – 2.0%
Zayo Group Holdings, Inc. (A)		2,808		83,420
Total Telecommunication Services – 2.0%				83,420
Utilities
Independent Power Producers & Energy Traders – 1.1%
Atlantica Yield plc		2,417		45,955
Total Utilities – 1.1%				45,955
TOTAL COMMON STOCKS – 98.6%			$	4,136,565
(Cost: $2,791,824)
WARRANTS
Commodity Chemicals – 0.0%
BioAmber, Inc., expires 5–9–17 (B)(E)		1,276		587
Fertilizers & Agricultural Chemicals – 0.0%
Marrone Bio Innovations, Inc., expires 8–20–23 (B)(E)(F)		2,390		—
TOTAL WARRANTS – 0.0%			$	587
(Cost: $447)
PURCHASED OPTIONS	Number of Contracts (Unrounded)
Teva Pharmaceutical Industries Ltd. ADR:
Call $57.50, Expires 10–21–16, OTC (Ctrpty: Goldman Sachs International)		5,299		16
Call $60.00, Expires 12–16–16		5,301		18
TOTAL PURCHASED OPTIONS – 0.0%			$	34
(Cost: $1,987)

36 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY SCIENCE AND TECHNOLOGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES	Principal		Value
Materials
Fertilizers & Agricultural Chemicals – 0.6%
Marrone Bio Innovations, Inc.,
8.000%, 8–20–20 (B)(F)	$	23,900	$	24,373
Total Materials – 0.6%				24,373
TOTAL CORPORATE DEBT SECURITIES – 0.6%			$	24,373
(Cost: $23,900)
SHORT-TERM SECURITIES
Commercial Paper (G) – 0.4%
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.),
0.640%, 10–6–16		5,000		4,999
Kroger Co. (The),
0.630%, 10–3–16		5,000		5,000
Northern Illinois Gas Co.,
0.420%, 10–3–16		6,025		6,025
				16,024

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.0%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (H)	$	41	$	41
Municipal Obligations – 0.2%
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank N.A.),
0.830%, 10–7–16 (H)		8,000		8,000
TOTAL SHORT-TERM SECURITIES – 0.6%			$	24,065
(Cost: $24,065)
TOTAL INVESTMENT SECURITIES – 99.8%			$	4,185,624
(Cost: $2,842,223)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2%				7,567
NET ASSETS – 100.0%			$	4,193,191

Notes to Schedule of Investments

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

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

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

(D) All or a portion of securities with an aggregate value of $7,201 are held in collateralized accounts to cover potential obligations with respect to outstanding written options.

(E) Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

(F) Restricted securities. At September 30, 2016, the Fund owned the following restricted securities:

Security	Acquisition Date(s)	Principal	Cost		Market Value
Marrone Bio Innovations, Inc., 8.000%, 8–20–20	8–20–15	$23,900	$	23,900		$24,373
		Shares
Marrone Bio Innovations, Inc., expires 8–20–23	8–20–15	2,390	$	—	$	—
			$	23,900		$24,373

The total value of these securities represented 0.6% of net assets at September 30, 2016.

(G) Rate shown is the yield to maturity at September 30, 2016.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Expiration Month	Exercise Price		Premium Received		Value
Teva Pharmaceutical Industries Ltd. ADR	Goldman Sachs International	Call		5,299	October 2016	$	65.00	$	201	$	(13	)

2016 SEMIANNUAL REPORT 37

SCHEDULE OF INVESTMENTS IVY SCIENCE AND TECHNOLOGY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	4,136,565	$	—	$	—
Warrants		—		587		—
Purchased Options		18		16		—
Corporate Debt Securities		—		24,373		—
Short-Term Securities		—		24,065		—
Total	$	4,136,583	$	49,041	$	—
Liabilities
Written Options	$	—	$	13	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

OTC = Over the Counter

REIT = Real Estate Investment Trust

Country Diversification

(as a % of net assets)
United States	81.5%
India	4.2%
Netherlands	3.7%
Israel	3.6%
China	1.5%
Bermuda	1.3%
Spain	1.2%
Germany	1.2%
Other Countries	1.0%
Other+	0.8%

+ Includes options, cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

38 SEMIANNUAL REPORT 2016

STATEMENTS OF ASSETS AND LIABILITIES Ivy Funds

AS OF SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Asset Strategy Fund(1)			Ivy Balanced Fund			Ivy Energy Fund			Ivy Global Natural Resources Fund			Ivy LaSalle Global Real Estate Fund			Ivy LaSalle Global Risk-Managed Real Estate Fund			Ivy Real Estate Securities Fund
ASSETS
Investments in unaffiliated securities at value+	$	5,697,377		$	2,716,251		$	533,247		$	739,242		$	35,446		$	122,723		$	715,656
Investments in affiliated securities at value+		136,681			—			—			—			—			—			—
Bullion at value+		483,592			—			—			—			—			—			—
Investments at Value		6,317,650			2,716,251			533,247			739,242			35,446			122,723			715,656
Cash		28,819			331			1			1			1			1			1
Cash denominated in foreign currencies at value+		—			—			—			—			114			—	*		—
Investment securities sold receivable		—			8,946			—			—			176			297			1,438
Dividends and interest receivable		69,367			9,696			195			572			215			710			2,694
Capital shares sold receivable		2,266			3,009			787			295			31			791			771
Receivable from affiliates		56			—			—			24			68			50			5
Unrealized appreciation on forward foreign currency contracts		451			—			—			648			—			—			—
Prepaid and other assets		237			141			60			56			28			40			64
Total Assets		6,418,846			2,738,374			534,290			740,838			36,079			124,612			720,629
LIABILITIES
Investment securities purchased payable		9,678			32,716			—			—			186			994			1,436
Capital shares redeemed payable		62,159			10,052			1,675			2,068			28			91			947
Independent Trustees and Chief Compliance Officer fees payable		1,181			59			9			548			—	*		1			75
Distribution and service fees payable		88			33			5			7			—	*		1			4
Shareholder servicing payable		2,796			659			160			443			11			23			198
Investment management fee payable		104			48			12			19			1			3			16
Accounting services fee payable		23			23			12			17			2			4			15
Written options at value+		4,192			—			—			—			—			—			—
Other liabilities		442			85			20			63			10			10			31
Total Liabilities		80,663			43,675			1,893			3,165			238			1,127			2,722
Total Net Assets	$	6,338,183		$	2,694,699		$	532,397		$	737,673		$	35,841		$	123,485		$	717,907
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	6,815,801		$	2,463,239		$	546,406		$	2,885,893		$	33,884		$	113,863		$	462,760
Undistributed (distributions in excess of) net investment income		258,460			7,796			(2,165	)		1,222			(131	)		(942	)		2,445
Accumulated net realized gain (loss)		(220,654	)		(2,511	)		(99,504	)		(2,189,741	)		(713	)		(503	)		39,263
Net unrealized appreciation (depreciation)		(515,424	)		226,175			87,660			40,299			2,801			11,067			213,439
Total Net Assets	$	6,338,183		$	2,694,699		$	532,397		$	737,673		$	35,841		$	123,485		$	717,907
CAPITAL SHARES OUTSTANDING:
Class A		88,322			35,478			14,427			24,404			1,203			4,378			10,342
Class B		9,693			3,601			329			736			28			94			151
Class C		120,109			36,809			7,611			9,353			102			755			673
Class E		2,124			8			10			336			N/A			N/A			141
Class I		66,149			31,760			11,514			12,722			1,910			4,812			7,455
Class R		3,861			534			1,890			1,870			47			218			70
Class R6		849			387			669			726			N/A			N/A			107
Class Y		16,066			4,212			3,634			2,430			66			448			5,384
NET ASSET VALUE PER SHARE:
Class A		$21.02			$23.95			$13.30			$14.30			$10.69			$11.53			$29.48
Class B		$19.85			$23.72			$12.20			$12.20			$10.61			$11.49			$28.61
Class C		$19.98			$23.80			$12.43			$12.01			$10.61			$11.49			$28.99
Class E		$21.09			$24.06			$13.62			$14.66			N/A			N/A			$29.48
Class I		$21.28			$23.95			$13.77			$14.90			$10.67			$11.55			$29.63
Class R		$20.79			$23.92			$13.21			$14.12			$10.65			$11.51			$29.48
Class R6		$21.34			$23.98			$13.82			$14.96			N/A			N/A			$29.67
Class Y		$21.07			$23.95			$13.48			$14.64			$10.80			$11.54			$29.50
+COST
Investments in unaffiliated securities at cost	$	5,633,521		$	2,490,076		$	445,587		$	699,591		$	32,644		$	111,656		$	502,217
Investments in affiliated securities at cost		760,835			—			—			—			—			—			—
Bullion at cost		437,875			—			—			—			—			—			—
Cash denominated in foreign currencies at cost		—			—			—			—			114			—			—
Written options premiums received at cost		3,748			—			—			—			—			—			—

* Not shown due to rounding.

(1) Consolidated Statement of Assets and Liabilities (See Note 6 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 39

STATEMENTS OF ASSETS AND LIABILITIES Ivy Funds

AS OF SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Science and Technology Fund
ASSETS
Investments in unaffiliated securities at value+	$	3,144,494
Investments in affiliated securities at value+		1,041,130
Investments at Value		4,185,624
Cash		1
Investment securities sold receivable		40,889
Dividends and interest receivable		2,821
Capital shares sold receivable		3,785
Receivable from affiliates		25
Prepaid and other assets		161
Total Assets		4,233,306
LIABILITIES
Investment securities purchased payable		20,812
Capital shares redeemed payable		17,467
Independent Trustees and Chief Compliance Officer fees payable		164
Distribution and service fees payable		37
Shareholder servicing payable		1,390
Investment management fee payable		93
Accounting services fee payable		23
Written options at value+		13
Other liabilities		116
Total Liabilities		40,115
Total Net Assets	$	4,193,191
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	2,991,522
Distributions in excess of net investment income		(24,616	)
Accumulated net realized loss		(117,304	)
Net unrealized appreciation		1,343,589
Total Net Assets	$	4,193,191
CAPITAL SHARES OUTSTANDING:
Class A		24,220
Class B		1,147
Class C		16,909
Class E		440
Class I		22,384
Class R		2,082
Class R6		1,567
Class Y		13,252
NET ASSET VALUE PER SHARE:
Class A		$50.81
Class B		$42.93
Class C		$44.46
Class E		$50.50
Class I		$55.43
Class R		$49.75
Class R6		$55.62
Class Y		$53.40
+COST
Investments in unaffiliated securities at cost	$	2,086,445
Investments in affiliated securities at cost		755,778
Written options premiums received at cost		201

See Accompanying Notes to Financial Statements.

40 SEMIANNUAL REPORT 2016

STATEMENTS OF OPERATIONS Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands)	Ivy Asset Strategy Fund(1)			Ivy Balanced Fund			Ivy Energy Fund			Ivy Global Natural Resources Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	34,160		$	18,526		$	2,282		$	5,448
Foreign dividend withholding tax		(1,057	)		(376	)		(48	)		(91	)
Interest and amortization from unaffiliated securities		49,492			16,938			30			79
Foreign interest withholding tax		—	*		—			—			—
Total Investment Income		82,595			35,088			2,264			5,436
EXPENSES
Investment management fee		23,782			9,129			2,097			3,511
Distribution and service fees:
Class A		3,108			1,364			248			484
Class B		1,182			425			19			47
Class C		15,190			4,514			444			566
Class E		62			—	*		—	*		6
Class R		231			34			56			64
Class Y		527			145			61			44
Shareholder servicing:
Class A		2,457			982			257			910
Class B		157			66			7			36
Class C		2,427			521			86			193
Class E		84			—	*		—	*		24
Class I		1,629			462			102			143
Class R		119			17			28			33
Class R6		1			—	*		—	*		1
Class Y		353			91			40			29
Registration fees		114			118			65			52
Custodian fees		190			17			8			11
Independent Trustees and Chief Compliance Officer fees		138			44			8			12
Accounting services fee		138			137			73			93
Professional fees		732			41			19			35
Other		812			94			29			70
Total Expenses		53,433			18,201			3,647			6,364
Less:
Expenses in excess of limit		(56	)		—			—			(24	)
Total Net Expenses		53,377			18,201			3,647			6,340
Net Investment Income (Loss)		29,218			16,887			(1,383	)		(904	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		208,327			17,273			(18,551	)		3,769
Written options		5,073			7,189			—			—
Forward foreign currency contracts		(918	)		—			—			4,747
Foreign currency exchange transactions		(665	)		—			(2	)		5
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		(32,062	)		84,707			122,149			88,872
Investments in affiliated securities		(114,765	)		—			—			—
Written options		(444	)		(2,654	)		—			—
Forward foreign currency contracts		1,183			—			—			393
Foreign currency exchange transactions		427			—			—			(13	)
Net Realized and Unrealized Gain		66,156			106,515			103,596			97,773
Net Increase in Net Assets Resulting from Operations	$	95,374		$	123,402		$	102,213		$	96,869

* Not shown due to rounding.

(1) Consolidated Statement of Operations (See Note 6 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 41

STATEMENTS OF OPERATIONS Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands)	Ivy LaSalle Global Real Estate Fund			Ivy LaSalle Global Risk-Managed Real Estate Fund			Ivy Real Estate Securities Fund			Ivy Science and Technology Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	565		$	1,957		$	8,952		$	13,991
Foreign dividend withholding tax		(22	)		(73	)		—			(268	)
Interest and amortization from unaffiliated securities		—	*		5			23			105
Interest and amortization from affiliated securities		—			—			—			948
Total Investment Income		543			1,889			8,975			14,776
EXPENSES
Investment management fee		166			521			3,232			18,388
Distribution and service fees:
Class A		25			77			504			1,884
Class B		2			5			22			249
Class C		5			30			97			3,913
Class E		N/A			N/A			5			27
Class R		1			6			4			267
Class Y		1			6			196			907
Shareholder servicing:
Class A		41			63			651			1,823
Class B		—	*		1			11			57
Class C		1			4			27			648
Class E		N/A			N/A			11			54
Class I		11			30			116			1,070
Class R		1			3			2			137
Class R6		N/A			N/A			—	*		4
Class Y		1			4			118			569
Registration fees		39			44			58			102
Custodian fees		14			16			9			214
Independent Trustees and Chief Compliance Officer fees		—	*		2			12			78
Accounting services fee		15			29			93			138
Professional fees		21			22			28			66
Other		11			10			34			165
Total Expenses		355			873			5,230			30,760
Less:
Expenses in excess of limit		(69	)		(45	)		(364	)		(25	)
Total Net Expenses		286			828			4,866			30,735
Net Investment Income (Loss)		257			1,061			4,109			(15,959	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		436			655			40,681			(26,540	)
Investments in affiliated securities		—			—			—			35,943
Written options		—			—			—			3,551
Foreign currency exchange transactions		(5	)		(21	)		—			1
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		128			2,301			(19,476	)		482,687
Investments in affiliated securities		—			—			—			(71,775	)
Written options		—			—			—			(1,237	)
Foreign currency exchange transactions		(1	)		—	*		—			—	*
Net Realized and Unrealized Gain		558			2,935			21,205			422,630
Net Increase in Net Assets Resulting from Operations	$	815		$	3,996		$	25,314		$	406,671

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

42 SEMIANNUAL REPORT 2016

STATEMENTS OF CHANGES IN NET ASSETS Ivy Funds

	Ivy Asset Strategy Fund(1)						Ivy Balanced Fund						Ivy Energy Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	29,218		$	90,773		$	16,887		$	26,505		$	(1,383	)	$	(1,205	)
Net realized gain (loss) on investments		211,817			(495,776	)		24,462			35,466			(18,553	)		(56,489	)
Net change in unrealized appreciation (depreciation)		(145,661	)		(2,549,877	)		82,053			(196,783	)		122,149			(59,079	)
Net Increase (Decrease) in Net Assets Resulting from Operations		95,374			(2,954,880	)		123,402			(134,812	)		102,213			(116,773	)
Distributions to Shareholders From:
Net investment income:
Class A		—			(10,489	)		(4,150	)		(13,081	)		—			—
Class B		—			—			(62	)		(294	)		—			—
Class C		—			—			(776	)		(3,453	)		—			—
Class E		—			(139	)		(1	)		(2	)		—			—
Class I		—			(24,092	)		(2,833	)		(4,163	)		—			—
Class R		—			—			(32	)		(98	)		—			—
Class R6		—			(501	)		(52	)		(49	)		—			—
Class Y		—			(1,819	)		(442	)		(1,596	)		—			—
Net realized gains:
Class A		—			(244,925	)		—			(60,494	)		—			—
Class B		—			(24,891	)		—			(3,461	)		—			—
Class C		—			(332,675	)		—			(38,343	)		—			—
Class E		—			(3,492	)		—			(9	)		—			—
Class I		—			(299,183	)		—			(16,265	)		—			—
Class R		—			(7,609	)		—			(625	)		—			—
Class R6		—			(4,657	)		—			(181	)		—			—
Class Y		—			(42,467	)		—			(6,651	)		—			—
Total Distributions to Shareholders		—			(996,939	)		(8,348	)		(148,765	)		—			—
Capital Share Transactions		(4,054,350	)		(10,951,731	)		(218,564	)		551,690			4,981			105,554
Net Increase (Decrease) in Net Assets		(3,958,976	)		(14,903,550	)		(103,510	)		268,113			107,194			(11,219	)
Net Assets, Beginning of Period		10,297,159			25,200,709			2,798,209			2,530,096			425,203			436,422
Net Assets, End of Period	$	6,338,183		$	10,297,159		$	2,694,699		$	2,798,209		$	532,397		$	425,203
Undistributed (distributions in excess of) net investment income	$	258,460		$	229,907		$	7,796		$	(743	)	$	(2,165	)	$	(780	)

(1) Consolidated Statements of Changes in Net Assets (See Note 6 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 43

STATEMENTS OF CHANGES IN NET ASSETS Ivy Funds

	Ivy Global Natural Resources Fund						Ivy LaSalle Global Real Estate Fund						Ivy LaSalle Global Risk-Managed Real Estate Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	(904	)	$	1,364		$	257		$	554		$	1,061		$	1,353
Net realized gain (loss) on investments		8,521			(121,589	)		431			(609	)		634			93
Net change in unrealized appreciation (depreciation)		89,252			(111,501	)		127			(800	)		2,301			2,854
Net Increase (Decrease) in Net Assets Resulting from Operations		96,869			(231,726	)		815			(855	)		3,996			4,300
Distributions to Shareholders From:
Net investment income:
Class A		—			—			(415	)		(371	)		(1,767	)		(565	)
Class B		—			—			(4	)		—	*		(20	)		(1	)
Class C		—			—			(12	)		—			(110	)		(8	)
Class E		—			—			N/A			N/A			N/A			N/A
Class I		—			—			(44	)		(30	)		(292	)		(135	)
Class R		—			—			(7	)		(2	)		(49	)		(13	)
Class R6		—			—			N/A			N/A			N/A			N/A
Class Y		—			—			(10	)		(11	)		(83	)		(46	)
Net realized gains:
Class A		—			—			—			(569	)		—			(469	)
Class B		—			—			—			(5	)		—			(6	)
Class C		—			—			—			(16	)		—			(35	)
Class E		—			—			N/A			N/A			N/A			N/A
Class I		—			—			—			(49	)		—			(100	)
Class R		—			—			—			(9	)		—			(21	)
Class R6		—			—			N/A			N/A			N/A			N/A
Class Y		—			—			—			(17	)		—			(41	)
Total Distributions to Shareholders		—			—			(492	)		(1,079	)		(2,321	)		(1,440	)
Capital Share Transactions		(69,299	)		(188,815	)		1,334			1,955			35,149			20,251
Net Increase (Decrease) in Net Assets		27,570			(420,541	)		1,657			21			36,824			23,111
Net Assets, Beginning of Period		710,103			1,130,644			34,184			34,163			86,661			63,550
Net Assets, End of Period	$	737,673		$	710,103		$	35,841		$	34,184		$	123,485		$	86,661
Undistributed (distributions in excess of) net investment income	$	1,222		$	2,121		$	(131	)	$	109		$	(942	)	$	339

* Not shown due to rounding.

See Accompanying Notes to Financial Statements.

44 SEMIANNUAL REPORT 2016

STATEMENTS OF CHANGES IN NET ASSETS Ivy Funds

	Ivy Real Estate Securities Fund						Ivy Science and Technology Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	4,109		$	8,646		$	(15,959	)	$	(42,301	)
Net realized gain on investments		40,681			18,864			12,955			28,521
Net change in unrealized appreciation (depreciation)		(19,476	)		(9,534	)		409,675			(997,819	)
Net Increase (Decrease) in Net Assets Resulting from Operations		25,314			17,976			406,671			(1,011,599	)
Distributions to Shareholders From:
Net investment income:
Class A		(2,492	)		(5,170	)		—			—
Class B		(11	)		(6	)		—			—
Class C		(57	)		(50	)		—			—
Class E		(21	)		(32	)		—			—
Class I		(612	)		(178	)		—			—
Class R		(8	)		(14	)		—			—
Class R6		(25	)		(49	)		—			—
Class Y		(996	)		(1,871	)		—			—
Net realized gains:
Class A		—			(23,374	)		—			(50,726	)
Class B		—			(232	)		—			(1,735	)
Class C		—			(836	)		—			(26,741	)
Class E		—			(155	)		—			(548	)
Class I		—			(582	)		—			(40,456	)
Class R		—			(78	)		—			(2,949	)
Class R6		—			(144	)		—			(993	)
Class Y		—			(7,056	)		—			(20,848	)
Total Distributions to Shareholders		(4,222	)		(39,827	)		—			(144,996	)
Capital Share Transactions		(8,243	)		(46,465	)		(1,202,592	)		(169,491	)
Net Increase (Decrease) in Net Assets		12,849			(68,316	)		(795,921	)		(1,326,086	)
Net Assets, Beginning of Period		705,058			773,374			4,989,112			6,315,198
Net Assets, End of Period	$	717,907		$	705,058		$	4,193,191		$	4,989,112
Undistributed (distributions in excess of) net investment income	$	2,445		$	2,558		$	(24,616	)	$	(8,658	)

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 45

CONSOLIDATED STATEMENT OF CASH FLOWS IVY FUNDS

FOR THE PERIOD ENDED SEPTEMBER 30, 2016

(In thousands)	Ivy Asset Strategy Fund
Cash flows provided by operating activities:
Net increase in net assets resulting from operations	$	95,374
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities:
Purchases of long-term investment securities		(1,479,041	)
Proceeds from sales of long-term investment securities		3,235,645
Proceeds of bullion, net		211,919
Proceeds from sales of purchased options, net		16,044
Purchases of short-term portfolio investment securities, net		2,107,531
Increase in dividends and interest receivable		(27,153	)
Increase in receivables from affiliates		(12	)
Increase in prepaid and other assets		(83	)
Decrease in Trustees and Chief Compliance Officer fees payable		(34	)
Decrease in service fee payable		(49	)
Decrease in shareholder servicing fees payable		(510	)
Decrease in investment management fee payable		(60	)
Increase in written options		4,192
Net unrealized loss on foreign currency transactions		(5,170	)
Proceeds from currency transactions		(4,359	)
Increase in other liabilities		390
Net change in unrealized depreciation on investments in unaffiliated securities		32,062
Net change in unrealized depreciation on investments in affiliated securities		114,765
Net change in unrealized depreciation on written options		444
Net change in unrealized appreciation on forward foreign currency contracts		(1,183	)
Net change in unrealized appreciation on foreign currency exchange transactions		(427	)
Net realized gain on investments, written options, swap agreements and foreign currency transactions		(211,817	)
Net cash provided by operating activities		4,088,468
Cash flows used for financing activities:
Proceeds from sale of shares		616,465
Payment on shares redeemed		(4,704,154	)
Net cash used for financing activities		(4,087,689	)
Net increase in cash and foreign currency		779
Cash and foreign currency, at beginning of year		28,040
Cash and foreign currency, at end of year	$	28,819

See Accompanying Notes to Financial Statements.

46 SEMIANNUAL REPORT 2016

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2016 SEMIANNUAL REPORT 47

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)(1)			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 9-30-2016 (unaudited)	$	20.83	$	0.10		$	0.09		$	0.19		$	—		$	—		$	—
Year ended 3-31-2016		25.89		0.15			(3.78	)		(3.63	)		(0.06	)		(1.37	)		(1.43	)
Year ended 3-31-2015		31.61		0.26			(1.01	)		(0.75	)		(0.12	)		(4.85	)		(4.97	)
Year ended 3-31-2014		27.04		0.27			4.45			4.72			(0.15	)		—			(0.15	)
Year ended 3-31-2013		25.44		0.39			1.88			2.27			(0.67	)		—			(0.67	)
Year ended 3-31-2012		25.42		0.20			0.10			0.30			(0.28	)		—			(0.28	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		19.73		0.03			0.09			0.12			—			—			—
Year ended 3-31-2016		24.73		(0.04	)		(3.59	)		(3.63	)		—			(1.37	)		(1.37	)
Year ended 3-31-2015		30.54		0.03			(0.96	)		(0.93	)		(0.03	)		(4.85	)		(4.88	)
Year ended 3-31-2014		26.20		0.05			4.29			4.34			—	*		—			—	*
Year ended 3-31-2013		24.55		0.19			1.82			2.01			(0.36	)		—			(0.36	)
Year ended 3-31-2012		24.53		0.00			0.12			0.12			(0.10	)		—			(0.10	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		19.87		0.02			0.09			0.11			—			—			—
Year ended 3-31-2016		24.88		(0.02	)		(3.62	)		(3.64	)		—			(1.37	)		(1.37	)
Year ended 3-31-2015		30.69		0.04			(0.97	)		(0.93	)		(0.03	)		(4.85	)		(4.88	)
Year ended 3-31-2014		26.33		0.05			4.32			4.37			(0.01	)		—			(0.01	)
Year ended 3-31-2013		24.67		0.20			1.83			2.03			(0.37	)		—			(0.37	)
Year ended 3-31-2012		24.66		0.01			0.11			0.12			(0.11	)		—			(0.11	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		20.89		0.11			0.09			0.20			—			—			—
Year ended 3-31-2016		25.96		0.13			(3.78	)		(3.65	)		(0.05	)		(1.37	)		(1.42	)
Year ended 3-31-2015		31.67		0.23			(0.98	)		(0.75	)		(0.11	)		(4.85	)		(4.96	)
Year ended 3-31-2014		27.10		0.26			4.45			4.71			(0.14	)		—			(0.14	)
Year ended 3-31-2013		25.49		0.38			1.89			2.27			(0.66	)		—			(0.66	)
Year ended 3-31-2012		25.48		0.19			0.10			0.29			(0.28	)		—			(0.28	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		21.06		0.13			0.09			0.22			—			—			—
Year ended 3-31-2016		26.15		0.23			(3.84	)		(3.61	)		(0.11	)		(1.37	)		(1.48	)
Year ended 3-31-2015		31.88		0.33			(1.02	)		(0.69	)		(0.19	)		(4.85	)		(5.04	)
Year ended 3-31-2014		27.25		0.34			4.48			4.82			(0.19	)		—			(0.19	)
Year ended 3-31-2013		25.67		0.45			1.90			2.35			(0.77	)		—			(0.77	)
Year ended 3-31-2012		25.64		0.25			0.11			0.36			(0.33	)		—			(0.33	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		20.63		0.07			0.09			0.16			—			—			—
Year ended 3-31-2016		25.68		0.05			(3.73	)		(3.68	)		—			(1.37	)		(1.37	)
Year ended 3-31-2015		31.45		0.14			(1.00	)		(0.86	)		(0.06	)		(4.85	)		(4.91	)
Year ended 3-31-2014		26.94		0.16			4.43			4.59			(0.08	)		—			(0.08	)
Year ended 3-31-2013		25.29		0.29			1.88			2.17			(0.52	)		—			(0.52	)
Year ended 3-31-2012		25.28		0.11			0.11			0.22			(0.21	)		—			(0.21	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		21.10		0.15			0.09			0.24			—			—			—
Year ended 3-31-2016		26.21		0.22			(3.81	)		(3.59	)		(0.15	)		(1.37	)		(1.52	)
Year ended 3-31-2015(6)		31.79		0.22			(0.78	)		(0.56	)		(0.17	)		(4.85	)		(5.02	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		20.88		0.10			0.09			0.19			—			—			—
Year ended 3-31-2016		25.94		0.15			(3.78	)		(3.63	)		(0.06	)		(1.37	)		(1.43	)
Year ended 3-31-2015		31.67		0.25			(1.01	)		(0.76	)		(0.12	)		(4.85	)		(4.97	)
Year ended 3-31-2014		27.09		0.27			4.46			4.73			(0.15	)		—			(0.15	)
Year ended 3-31-2013		25.49		0.39			1.88			2.27			(0.67	)		—			(0.67	)
Year ended 3-31-2012		25.46		0.20			0.11			0.31			(0.28	)		—			(0.28	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

48 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	21.02		0.91	%	$	1,866		1.09	%(4)		0.96	%(4)		—	%		—	%		25	%
Year ended 3-31-2016		20.83		-14.39			3,153		0.99			0.61			—			—			68
Year ended 3-31-2015		25.89		-2.28			6,332		0.96			0.86			—			—			75
Year ended 3-31-2014		31.61		17.47			9,659		0.96			0.92			—			—			65
Year ended 3-31-2013		27.04		9.09			7,853		0.98			1.55			—			—			39
Year ended 3-31-2012		25.44		1.31			8,019		0.97			0.81			—			—			47
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		19.85		0.61			193		1.77	(4)		0.27	(4)		—			—			25
Year ended 3-31-2016		19.73		-15.06			287		1.76			-0.16			—			—			68
Year ended 3-31-2015		24.73		-3.01			571		1.71			0.11			—			—			75
Year ended 3-31-2014		30.54		16.58			783		1.71			0.16			—			—			65
Year ended 3-31-2013		26.20		8.27			715		1.73			0.79			—			—			39
Year ended 3-31-2012		24.55		0.54			695		1.76			0.02			—			—			47
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		19.98		0.55			2,397		1.80	(4)		0.24	(4)		—			—			25
Year ended 3-31-2016		19.87		-15.01			3,792		1.71			-0.10			—			—			68
Year ended 3-31-2015		24.88		-2.99			7,807		1.68			0.13			—			—			75
Year ended 3-31-2014		30.69		16.59			9,880		1.68			0.19			—			—			65
Year ended 3-31-2013		26.33		8.34			8,321		1.70			0.83			—			—			39
Year ended 3-31-2012		24.67		0.56			8,416		1.71			0.06			—			—			47
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		21.09		0.96			45		1.00	(4)		1.04	(4)		1.23	(4)		0.81	(4)		25
Year ended 3-31-2016		20.89		-14.41			53		1.00			0.53			1.14			0.39			68
Year ended 3-31-2015		25.96		-2.29			72		1.00			0.79			1.10			0.69			75
Year ended 3-31-2014		31.67		17.40			74		1.00			0.87			1.12			0.75			65
Year ended 3-31-2013		27.10		9.07			58		1.00			1.50			1.20			1.30			39
Year ended 3-31-2012		25.49		1.26			50		1.00			0.77			1.23			0.55			47
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		21.28		1.04			1,400		0.83	(4)		1.20	(4)		—			—			25
Year ended 3-31-2016		21.06		-14.17			2,382		0.74			0.95			—			—			68
Year ended 3-31-2015		26.15		-2.06			9,112		0.74			1.08			—			—			75
Year ended 3-31-2014		31.88		17.72			13,522		0.73			1.14			—			—			65
Year ended 3-31-2013		27.25		9.33			9,681		0.74			1.76			—			—			39
Year ended 3-31-2012		25.67		1.57			8,180		0.75			1.03			—			—			47
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		20.79		0.78			81		1.39	(4)		0.65	(4)		—			—			25
Year ended 3-31-2016		20.63		-14.69			106		1.34			0.20			—			—			68
Year ended 3-31-2015		25.68		-2.67			161		1.33			0.47			—			—			75
Year ended 3-31-2014		31.45		17.03			162		1.33			0.54			—			—			65
Year ended 3-31-2013		26.94		8.71			124		1.34			1.15			—			—			39
Year ended 3-31-2012		25.29		0.96			102		1.33			0.45			—			—			47
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		21.34		1.14			17		0.65	(4)		1.37	(4)		—			—			25
Year ended 3-31-2016		21.10		-14.09			12		0.60			0.89			—			—			68
Year ended 3-31-2015(6)		26.21		-1.67			12		0.59	(4)		1.18	(4)		—			—			75	(7)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		21.07		0.91			339		1.06	(4)		0.98	(4)		—			—			25
Year ended 3-31-2016		20.88		-14.36			512		0.99			0.63			1.00			0.62			68
Year ended 3-31-2015		25.94		-2.31			1,134		0.96			0.85			0.98			0.83			75
Year ended 3-31-2014		31.67		17.47			1,516		0.96			0.92			0.98			0.90			65
Year ended 3-31-2013		27.09		9.08			1,168		0.98			1.55			0.99			1.54			39
Year ended 3-31-2012		25.49		1.35			1,167		0.97			0.80			1.00			0.77			47

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 49

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 (Loss)(1)			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 9-30-2016 (unaudited)	$	22.99	$	0.16		$	0.89		$	1.05		$	(0.09	)	$	—		$	(0.09	)
Year ended 3-31-2016		25.65		0.29			(1.51	)		(1.22	)		(0.26	)		(1.18	)		(1.44	)
Year ended 3-31-2015		24.38		0.20			1.97			2.17			(0.16	)		(0.74	)		(0.90	)
Year ended 3-31-2014		21.60		0.15			3.25			3.40			(0.10	)		(0.52	)		(0.62	)
Year ended 3-31-2013		20.03		0.19			1.70			1.89			(0.17	)		(0.15	)		(0.32	)
Year ended 3-31-2012		19.08		0.17			1.05			1.22			(0.18	)		(0.09	)		(0.27	)
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		22.78		0.08			0.88			0.96			(0.02	)		—			(0.02	)
Year ended 3-31-2016		25.45		0.11			(1.50	)		(1.39	)		(0.10	)		(1.18	)		(1.28	)
Year ended 3-31-2015		24.19		0.01			1.97			1.98			—			(0.72	)		(0.72	)
Year ended 3-31-2014		21.45		(0.03	)		3.23			3.20			—			(0.46	)		(0.46	)
Year ended 3-31-2013		19.93		0.03			1.69			1.72			(0.05	)		(0.15	)		(0.20	)
Year ended 3-31-2012		18.99		0.02			1.05			1.07			(0.04	)		(0.09	)		(0.13	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		22.85		0.08			0.89			0.97			(0.02	)		—			(0.02	)
Year ended 3-31-2016		25.53		0.13			(1.52	)		(1.39	)		(0.11	)		(1.18	)		(1.29	)
Year ended 3-31-2015		24.26		0.02			1.97			1.99			—	*		(0.72	)		(0.72	)
Year ended 3-31-2014		21.50		(0.01	)		3.24			3.23			—			(0.47	)		(0.47	)
Year ended 3-31-2013		19.98		0.05			1.68			1.73			(0.06	)		(0.15	)		(0.21	)
Year ended 3-31-2012		19.03		0.04			1.06			1.10			(0.06	)		(0.09	)		(0.15	)
Class E Shares(5)
Six-month period ended 9-30-2016 (unaudited)		23.09		0.19			0.89			1.08			(0.11	)		—			(0.11	)
Year ended 3-31-2016		25.76		0.33			(1.53	)		(1.20	)		(0.29	)		(1.18	)		(1.47	)
Year ended 3-31-2015		24.48		0.23			1.99			2.22			(0.20	)		(0.74	)		(0.94	)
Year ended 3-31-2014		21.68		0.18			3.27			3.45			(0.13	)		(0.52	)		(0.65	)
Year ended 3-31-2013		20.02		0.22			1.78			2.00			(0.19	)		(0.15	)		(0.34	)
Year ended 3-31-2012		19.06		0.21			1.04			1.25			(0.20	)		(0.09	)		(0.29	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		22.98		0.20			0.89			1.09			(0.12	)		—			(0.12	)
Year ended 3-31-2016		25.63		0.36			(1.52	)		(1.16	)		(0.31	)		(1.18	)		(1.49	)
Year ended 3-31-2015		24.36		0.26			1.98			2.24			(0.23	)		(0.74	)		(0.97	)
Year ended 3-31-2014		21.58		0.21			3.26			3.47			(0.16	)		(0.53	)		(0.69	)
Year ended 3-31-2013		20.01		0.24			1.69			1.93			(0.21	)		(0.15	)		(0.36	)
Year ended 3-31-2012		19.04		0.22			1.06			1.28			(0.22	)		(0.09	)		(0.31	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		22.96		0.13			0.89			1.02			(0.06	)		—			(0.06	)
Year ended 3-31-2016		25.65		0.22			(1.53	)		(1.31	)		(0.20	)		(1.18	)		(1.38	)
Year ended 3-31-2015		24.37		0.11			1.98			2.09			(0.07	)		(0.74	)		(0.81	)
Year ended 3-31-2014		21.59		0.07			3.26			3.33			(0.03	)		(0.52	)		(0.55	)
Year ended 3-31-2013(6)		20.16		0.00			1.43			1.43			—			—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		23.01		0.21			0.89			1.10			(0.13	)		—			(0.13	)
Year ended 3-31-2016		25.66		0.39			(1.52	)		(1.13	)		(0.34	)		(1.18	)		(1.52	)
Year ended 3-31-2015(7)		24.66		0.22			1.72			1.94			(0.20	)		(0.74	)		(0.94	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		22.99		0.17			0.88			1.05			(0.09	)		—			(0.09	)
Year ended 3-31-2016		25.66		0.29			(1.52	)		(1.23	)		(0.26	)		(1.18	)		(1.44	)
Year ended 3-31-2015		24.38		0.20			1.99			2.19			(0.17	)		(0.74	)		(0.91	)
Year ended 3-31-2014		21.60		0.15			3.26			3.41			(0.10	)		(0.53	)		(0.63	)
Year ended 3-31-2013		20.03		0.19			1.70			1.89			(0.17	)		(0.15	)		(0.32	)
Year ended 3-31-2012		19.08		0.18			1.05			1.23			(0.19	)		(0.09	)		(0.28	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(5) Class share is closed to investment.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

50 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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 9-30-2016 (unaudited)	$	23.95		4.57	%	$	850			1.12	%(3)		1.41	%(3)		23	%
Year ended 3-31-2016		22.99		-4.92			1,311			1.10			1.21			56
Year ended 3-31-2015		25.65		9.06			1,207			1.11			0.78			33
Year ended 3-31-2014		24.38		15.90			863			1.15			0.62			34
Year ended 3-31-2013		21.60		9.56			399			1.17			0.93			35
Year ended 3-31-2012		20.03		6.52			205			1.23			0.90			37
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		23.72		4.20			85			1.84	(3)		0.67	(3)		23
Year ended 3-31-2016		22.78		-5.62			80			1.83			0.48			56
Year ended 3-31-2015		25.45		8.28			74			1.84			0.04			33
Year ended 3-31-2014		24.19		15.01			70			1.89			-0.11			34
Year ended 3-31-2013		21.45		8.73			44			1.95			0.16			35
Year ended 3-31-2012		19.93		5.72			23			2.02			0.10			37
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		23.80		4.25			877			1.80	(3)		0.71	(3)		23
Year ended 3-31-2016		22.85		-5.62			892			1.79			0.53			56
Year ended 3-31-2015		25.53		8.34			736			1.80			0.09			33
Year ended 3-31-2014		24.26		15.11			524			1.84			-0.06			34
Year ended 3-31-2013		21.50		8.75			246			1.88			0.23			35
Year ended 3-31-2012		19.98		5.84			128			1.92			0.21			37
Class E Shares(5)
Six-month period ended 9-30-2016 (unaudited)		24.06		4.67			—	*		0.95	(3)		1.57	(3)		23
Year ended 3-31-2016		23.09		-4.82			—	*		0.95			1.36			56
Year ended 3-31-2015		25.76		9.22			—	*		0.96			0.92			33
Year ended 3-31-2014		24.48		16.10			—	*		1.00			0.78			34
Year ended 3-31-2013		21.68		10.15			—	*		1.03			1.09			35
Year ended 3-31-2012		20.02		6.71			—	*		1.05			1.11			37
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		23.95		4.74			761			0.85	(3)		1.64	(3)		23
Year ended 3-31-2016		22.98		-4.70			373			0.84			1.47			56
Year ended 3-31-2015		25.63		9.34			315			0.86			1.03			33
Year ended 3-31-2014		24.36		16.21			211			0.88			0.89			34
Year ended 3-31-2013		21.58		9.82			66			0.92			1.19			35
Year ended 3-31-2012		20.01		6.88			39			0.94			1.17			37
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		23.92		4.43			13			1.44	(3)		1.07	(3)		23
Year ended 3-31-2016		22.96		-5.29			13			1.44			0.89			56
Year ended 3-31-2015		25.65		8.71			9			1.46			0.43			33
Year ended 3-31-2014		24.37		15.51			4			1.47			0.29			34
Year ended 3-31-2013 (6)		21.59		7.09			—	*		1.48	(3)		0.02	(3)		35	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		23.98		4.80			9			0.69	(3)		1.80	(3)		23
Year ended 3-31-2016		23.01		-4.57			5			0.69			1.60			56
Year ended 3-31-2015 (7)		25.66		8.01			4			0.70	(3)		1.29	(3)		33	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		23.95		4.58			100			1.09	(3)		1.42	(3)		23
Year ended 3-31-2016		22.99		-4.95			124			1.09			1.16			56
Year ended 3-31-2015		25.66		9.10			185			1.11			0.79			33
Year ended 3-31-2014		24.38		15.91			152			1.13			0.64			34
Year ended 3-31-2013		21.60		9.57			89			1.16			0.96			35
Year ended 3-31-2012		20.03		6.57			70			1.19			0.96			37

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 51

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)(1)			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 9-30-2016 (unaudited)	$	10.75	$	(0.03	)	$	2.58		$	2.55		$	—	$	—	$	—
Year ended 3-31-2016		14.03		(0.03	)		(3.25	)		(3.28	)		—		—		—
Year ended 3-31-2015		16.38		(0.05	)		(2.30	)		(2.35	)		—		—		—
Year ended 3-31-2014		13.74		(0.09	)		2.73			2.64			—		—		—
Year ended 3-31-2013		12.68		(0.07	)		1.13			1.06			—		—		—
Year ended 3-31-2012		15.11		(0.09	)		(2.34	)		(2.43	)		—		—		—
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		9.90		(0.08	)		2.38			2.30			—		—		—
Year ended 3-31-2016		13.04		(0.13	)		(3.01	)		(3.14	)		—		—		—
Year ended 3-31-2015		15.35		(0.17	)		(2.14	)		(2.31	)		—		—		—
Year ended 3-31-2014		12.98		(0.19	)		2.56			2.37			—		—		—
Year ended 3-31-2013		12.08		(0.17	)		1.07			0.90			—		—		—
Year ended 3-31-2012		14.52		(0.18	)		(2.26	)		(2.44	)		—		—		—
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		10.08		(0.07	)		2.42			2.35			—		—		—
Year ended 3-31-2016		13.24		(0.10	)		(3.06	)		(3.16	)		—		—		—
Year ended 3-31-2015		15.55		(0.13	)		(2.18	)		(2.31	)		—		—		—
Year ended 3-31-2014		13.12		(0.16	)		2.59			2.43			—		—		—
Year ended 3-31-2013		12.19		(0.14	)		1.07			0.93			—		—		—
Year ended 3-31-2012		14.62		(0.16	)		(2.27	)		(2.43	)		—		—		—
Class E Shares(6)
Six-month period ended 9-30-2016 (unaudited)		10.99		(0.02	)		2.65			2.63			—		—		—
Year ended 3-31-2016		14.30		0.01			(3.32	)		(3.31	)		—		—		—
Year ended 3-31-2015		16.65		(0.01	)		(2.34	)		(2.35	)		—		—		—
Year ended 3-31-2014		13.92		(0.04	)		2.77			2.73			—		—		—
Year ended 3-31-2013		12.81		(0.03	)		1.14			1.11			—		—		—
Year ended 3-31-2012		15.22		(0.05	)		(2.36	)		(2.41	)		—		—		—
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		11.11		(0.01	)		2.67			2.66			—		—		—
Year ended 3-31-2016		14.44		0.02			(3.35	)		(3.33	)		—		—		—
Year ended 3-31-2015		16.80		0.02			(2.38	)		(2.36	)		—		—		—
Year ended 3-31-2014		14.03		(0.02	)		2.79			2.77			—		—		—
Year ended 3-31-2013		12.90		(0.02	)		1.15			1.13			—		—		—
Year ended 3-31-2012		15.31		(0.03	)		(2.38	)		(2.41	)		—		—		—
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		10.69		(0.05	)		2.57			2.52			—		—		—
Year ended 3-31-2016		13.98		(0.05	)		(3.24	)		(3.29	)		—		—		—
Year ended 3-31-2015		16.35		(0.08	)		(2.29	)		(2.37	)		—		—		—
Year ended 3-31-2014		13.74		(0.11	)		2.72			2.61			—		—		—
Year ended 3-31-2013(7)		12.26		(0.03	)		1.51			1.48			—		—		—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		11.14		0.00	*		2.68			2.68			—		—		—
Year ended 3-31-2016		14.46		0.04			(3.36	)		(3.32	)		—		—		—
Year ended 3-31-2015(8)		18.03		0.03			(3.60	)		(3.57	)		—		—		—
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		10.89		(0.03	)		2.62			2.59			—		—		—
Year ended 3-31-2016		14.19		(0.01	)		(3.29	)		(3.30	)		—		—		—
Year ended 3-31-2015		16.55		(0.04	)		(2.32	)		(2.36	)		—		—		—
Year ended 3-31-2014		13.86		(0.06	)		2.75			2.69			—		—		—
Year ended 3-31-2013		12.77		(0.05	)		1.14			1.09			—		—		—
Year ended 3-31-2012		15.20		(0.07	)		(2.36	)		(2.43	)		—		—		—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) Class share is closed to investment.

(7) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(8) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(10) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

    .

52 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	13.30		23.72	%	$	191			1.44	%(4)		-0.51	%(4)		—	%		—	%		20	%
Year ended 3-31-2016		10.75		-23.38			192			1.49			-0.23			—			—			31
Year ended 3-31-2015		14.03		-14.35			213			1.48			-0.33			—			—			22
Year ended 3-31-2014		16.38		19.13			124			1.60			-0.59			—			—			34
Year ended 3-31-2013		13.74		8.44			82			1.60			-0.54			1.68			-0.62			30
Year ended 3-31-2012		12.68		-16.08			85			1.60			-0.66			—			—			20
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		12.20		23.23			4			2.32	(4)		-1.40	(4)		—			—			20
Year ended 3-31-2016		9.90		-24.08			3			2.36			-1.11			—			—			31
Year ended 3-31-2015		13.04		-15.05			5			2.29			-1.17			—			—			22
Year ended 3-31-2014		15.35		18.26			5			2.38			-1.37			—			—			34
Year ended 3-31-2013		12.98		7.36			4			2.49			-1.43			—			—			30
Year ended 3-31-2012		12.08		-16.74			4			2.41			-1.47			—			—			20
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		12.43		23.31			95			2.12	(4)		-1.21	(4)		—			—			20
Year ended 3-31-2016		10.08		-23.87			79			2.16			-0.89			—			—			31
Year ended 3-31-2015		13.24		-14.85			82			2.09			-0.92			—			—			22
Year ended 3-31-2014		15.55		18.43			30			2.16			-1.15			—			—			34
Year ended 3-31-2013		13.12		7.71			19			2.26			-1.20			—			—			30
Year ended 3-31-2012		12.19		-16.62			20			2.23			-1.30			—			—			20
Class E Shares(6)
Six-month period ended 9-30-2016 (unaudited)		13.62		23.93			—	*		1.19	(4)		-0.28	(4)		—			—			20
Year ended 3-31-2016		10.99		-23.15			—	*		1.20			0.05			—			—			31
Year ended 3-31-2015		14.30		-14.11			—	*		1.20			-0.08			—			—			22
Year ended 3-31-2014		16.65		19.53			—	*		1.25			-0.25			—			—			34
Year ended 3-31-2013		13.92		8.74			—	*		1.31			-0.26			—			—			30
Year ended 3-31-2012		12.81		-15.83			—	*		1.30			-0.36			—			—			20
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		13.77		23.94			159			1.09	(4)		-0.20	(4)		—			—			20
Year ended 3-31-2016		11.11		-23.06			85			1.10			0.16			—			—			31
Year ended 3-31-2015		14.44		-14.05			82			1.09			0.10			—			—			22
Year ended 3-31-2014		16.80		19.74			14			1.14			-0.12			—			—			34
Year ended 3-31-2013		14.03		8.76			6			1.21			-0.14			—			—			30
Year ended 3-31-2012		12.90		-15.74			5			1.19			-0.26			—			—			20
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		13.21		23.57			25			1.68	(4)		-0.77	(4)		—			—			20
Year ended 3-31-2016		10.69		-23.53			19			1.70			-0.43			—			—			31
Year ended 3-31-2015		13.98		-14.50			15			1.69			-0.53			—			—			22
Year ended 3-31-2014		16.35		19.00			5			1.72			-0.70			—			—			34
Year ended 3-31-2013(7)		13.74		12.07			—	*		1.73	(4)		-0.91	(4)		—			—			30	(9)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		13.82		24.06			9			0.93	(4)		-0.05	(4)		—			—			20
Year ended 3-31-2016		11.14		-22.96			5			0.95			0.35			—			—			31
Year ended 3-31-2015(8)		14.46		-19.80			2			0.93	(4)		0.34	(4)		—			—			22	(10)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		13.48		23.78			49			1.34	(4)		-0.42	(4)		—			—			20
Year ended 3-31-2016		10.89		-23.26			42			1.36			-0.08			—			—			31
Year ended 3-31-2015		14.19		-14.26			37			1.34			-0.22			—			—			22
Year ended 3-31-2014		16.55		19.41			18			1.39			-0.38			—			—			34
Year ended 3-31-2013		13.86		8.54			8			1.45			-0.39			—			—			30
Year ended 3-31-2012		12.77		-15.99			7			1.45			-0.52			—			—			20

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 53

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)(1)			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 9-30-2016 (unaudited)	$	12.53	$	(0.02	)	$	1.79		$	1.77		$	—		$	—	$	—
Year ended 3-31-2016		16.13		0.03			(3.63	)		(3.60	)		—			—		—
Year ended 3-31-2015		19.07		0.00	*		(2.94	)		(2.94	)		—			—		—
Year ended 3-31-2014		17.84		(0.02	)		1.25			1.23			—			—		—
Year ended 3-31-2013		17.76		(0.03	)		0.14			0.11			(0.03	)		—		(0.03	)
Year ended 3-31-2012		24.20		(0.01	)		(6.43	)		(6.44	)		—			—		—
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		10.75		(0.08	)		1.53			1.45			—			—		—
Year ended 3-31-2016		13.98		(0.11	)		(3.12	)		(3.23	)		—			—		—
Year ended 3-31-2015		16.67		(0.15	)		(2.54	)		(2.69	)		—			—		—
Year ended 3-31-2014		15.73		(0.15	)		1.09			0.94			—			—		—
Year ended 3-31-2013		15.76		(0.14	)		0.11			(0.03	)		—			—		—
Year ended 3-31-2012		21.65		(0.15	)		(5.74	)		(5.89	)		—			—		—
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		10.55		(0.05	)		1.51			1.46			—			—		—
Year ended 3-31-2016		13.67		(0.06	)		(3.06	)		(3.12	)		—			—		—
Year ended 3-31-2015		16.26		(0.10	)		(2.49	)		(2.59	)		—			—		—
Year ended 3-31-2014		15.31		(0.11	)		1.06			0.95			—			—		—
Year ended 3-31-2013		15.31		(0.11	)		0.11			0.00			—			—		—
Year ended 3-31-2012		21.00		(0.12	)		(5.57	)		(5.69	)		—			—		—
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		12.81		0.02			1.83			1.85			—			—		—
Year ended 3-31-2016		16.43		0.09			(3.71	)		(3.62	)		—			—		—
Year ended 3-31-2015		19.36		0.06			(2.99	)		(2.93	)		—			—		—
Year ended 3-31-2014		18.06		0.04			1.26			1.30			—			—		—
Year ended 3-31-2013		17.96		0.01			0.15			0.16			(0.06	)		—		(0.06	)
Year ended 3-31-2012		24.45		0.01			(6.50	)		(6.49	)		—			—		—
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		13.02		0.02			1.86			1.88			—			—		—
Year ended 3-31-2016		16.69		0.10			(3.77	)		(3.67	)		—			—		—
Year ended 3-31-2015		19.63		0.09			(3.03	)		(2.94	)		—			—		—
Year ended 3-31-2014		18.28		0.07			1.28			1.35			—			—		—
Year ended 3-31-2013		18.19		0.06			0.14			0.20			(0.11	)		—		(0.11	)
Year ended 3-31-2012		24.69		0.06			(6.56	)		(6.50	)		—			—		—
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		12.37		(0.02	)		1.77			1.75			—			—		—
Year ended 3-31-2016		15.94		0.01			(3.58	)		(3.57	)		—			—		—
Year ended 3-31-2015		18.87		(0.02	)		(2.91	)		(2.93	)		—			—		—
Year ended 3-31-2014		17.67		(0.04	)		1.24			1.20			—			—		—
Year ended 3-31-2013		17.58		(0.05	)		0.14			0.09			—			—		—
Year ended 3-31-2012		24.00		(0.05	)		(6.37	)		(6.42	)		—			—		—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		13.06		0.03			1.87			1.90			—			—		—
Year ended 3-31-2016		16.70		0.13			(3.77	)		(3.64	)		—			—		—
Year ended 3-31-2015(6)		20.86		0.11			(4.27	)		(4.16	)		—			—		—
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		12.80		0.00	*		1.84			1.84			—			—		—
Year ended 3-31-2016		16.45		0.06			(3.71	)		(3.65	)		—			—		—
Year ended 3-31-2015		19.39		0.04			(2.98	)		(2.94	)		—			—		—
Year ended 3-31-2014		18.10		0.02			1.27			1.29			—			—		—
Year ended 3-31-2013		18.02		0.02			0.13			0.15			(0.07	)		—		(0.07	)
Year ended 3-31-2012		24.50		0.03			(6.51	)		(6.48	)		—			—		—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

    .

54 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	14.30		14.13	%	$	348		1.75	%(4)		-0.28	%(4)		—	%		—	%		42	%
Year ended 3-31-2016		12.53		-22.32			415		1.66			0.18			—			—			17
Year ended 3-31-2015		16.13		-15.42			645		1.57			-0.03			—			—			22
Year ended 3-31-2014		19.07		6.90			1,008		1.56			-0.09			—			—			100
Year ended 3-31-2013		17.84		0.64			1,375		1.52			-0.18			—			—			83
Year ended 3-31-2012		17.76		-26.61			1,770		1.41			-0.07			—			—			84
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		12.20		13.49			9		2.82	(4)		-1.35	(4)		—			—			42
Year ended 3-31-2016		10.75		-23.10			10		2.65			-0.85			—			—			17
Year ended 3-31-2015		13.98		-16.14			21		2.47			-0.95			—			—			22
Year ended 3-31-2014		16.67		5.98			40		2.41			-0.95			—			—			100
Year ended 3-31-2013		15.73		-0.19			69		2.33			-0.97			—			—			83
Year ended 3-31-2012		15.76		-27.21			112		2.20			-0.86			—			—			84
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		12.01		13.84			112		2.36	(4)		-0.89	(4)		—			—			42
Year ended 3-31-2016		10.55		-22.82			110		2.30			-0.47			—			—			17
Year ended 3-31-2015		13.67		-15.93			187		2.20			-0.65			—			—			22
Year ended 3-31-2014		16.26		6.21			291		2.18			-0.72			—			—			100
Year ended 3-31-2013		15.31		0.00	*		410		2.13			-0.78			—			—			83
Year ended 3-31-2012		15.31		-27.10			603		2.07			-0.73			—			—			84
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		14.66		14.44			5		1.26	(4)		0.22	(4)		2.25	(4)		-0.77	(4)		42
Year ended 3-31-2016		12.81		-22.03			4		1.26			0.59			2.21			-0.36			17
Year ended 3-31-2015		16.43		-15.13			6		1.27			0.32			2.03			-0.44			22
Year ended 3-31-2014		19.36		7.20			7		1.27			0.20			2.12			-0.64			100
Year ended 3-31-2013		18.06		0.91			7		1.27			0.05			2.21			-0.89			83
Year ended 3-31-2012		17.96		-26.54			7		1.27			0.06			2.03			-0.69			84
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		14.90		14.44			190		1.22	(4)		0.26	(4)		—			—			42
Year ended 3-31-2016		13.02		-21.99			103		1.16			0.67			—			—			17
Year ended 3-31-2015		16.69		-14.98			174		1.11			0.47			—			—			22
Year ended 3-31-2014		19.63		7.39			224		1.08			0.37			—			—			100
Year ended 3-31-2013		18.28		1.14			484		1.05			0.32			—			—			83
Year ended 3-31-2012		18.19		-26.33			1,137		1.02			0.32			—			—			84
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		14.12		14.15			27		1.77	(4)		-0.29	(4)		—			—			42
Year ended 3-31-2016		12.37		-22.40			24		1.75			0.10			—			—			17
Year ended 3-31-2015		15.94		-15.53			33		1.69			-0.12			—			—			22
Year ended 3-31-2014		18.87		6.79			43		1.67			-0.20			—			—			100
Year ended 3-31-2013		17.67		0.51			50		1.63			-0.30			—			—			83
Year ended 3-31-2012		17.58		-26.75			66		1.60			-0.26			—			—			84
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		14.96		14.55			11		1.02	(4)		0.45	(4)		—			—			42
Year ended 3-31-2016		13.06		-21.80			11		1.00			0.92			—			—			17
Year ended 3-31-2015(6)		16.70		-19.94			5		0.95	(4)		0.97	(4)		—			—			22	(7)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		14.64		14.38			36		1.43	(4)		0.05	(4)		—			—			42
Year ended 3-31-2016		12.80		-22.19			33		1.40			0.42			—			—			17
Year ended 3-31-2015		16.45		-15.16			60		1.35			0.20			—			—			22
Year ended 3-31-2014		19.39		7.07			88		1.33			0.10			—			—			100
Year ended 3-31-2013		18.10		0.93			186		1.27			0.11			1.29			0.09			83
Year ended 3-31-2012		18.02		-26.45			491		1.20			0.14			1.27			0.07			84

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 55

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LASALLE GLOBAL REAL ESTATE FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			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 9-30-2016 (unaudited)	$	10.58	$	0.06		$	0.20		$	0.26		$	(0.15	)	$	—		$	(0.15	)
Year ended 3-31-2016		11.15		0.17			(0.41	)		(0.24	)		(0.13	)		(0.20	)		(0.33	)
Year ended 3-31-2015		9.83		0.13			1.46			1.59			(0.19	)		(0.08	)		(0.27	)
Year ended 3-31-2014		10.00		0.11			(0.12	)		(0.01	)		(0.16	)		—			(0.16	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		10.56		0.02			0.18			0.20			(0.15	)		—			(0.15	)
Year ended 3-31-2016		11.10		0.06			(0.40	)		(0.34	)		(0.01	)		(0.19	)		(0.20	)
Year ended 3-31-2015		9.79		0.01			1.46			1.47			(0.08	)		(0.08	)		(0.16	)
Year ended 3-31-2014		10.00		0.00	*		(0.12	)		(0.12	)		(0.09	)		—			(0.09	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		10.55		0.02			0.17			0.19			(0.13	)		—			(0.13	)
Year ended 3-31-2016		11.10		0.04			(0.41	)		(0.37	)		—			(0.18	)		(0.18	)
Year ended 3-31-2015		9.80		(0.01	)		1.47			1.46			(0.08	)		(0.08	)		(0.16	)
Year ended 3-31-2014		10.00		0.00	*		(0.11	)		(0.11	)		(0.09	)		—			(0.09	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		10.57		0.12			0.13			0.25			(0.15	)		—			(0.15	)
Year ended 3-31-2016		11.14		0.17			(0.42	)		(0.25	)		(0.12	)		(0.20	)		(0.32	)
Year ended 3-31-2015		9.82		0.12			1.46			1.58			(0.18	)		(0.08	)		(0.26	)
Year ended 3-31-2014		10.00		0.09			(0.11	)		(0.02	)		(0.16	)		—			(0.16	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		10.57		0.04			0.19			0.23			(0.15	)		—			(0.15	)
Year ended 3-31-2016		11.12		0.10			(0.41	)		(0.31	)		(0.04	)		(0.20	)		(0.24	)
Year ended 3-31-2015		9.81		0.05			1.46			1.51			(0.12	)		(0.08	)		(0.20	)
Year ended 3-31-2014		10.00		0.04			(0.11	)		(0.07	)		(0.12	)		—			(0.12	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		10.64		0.08			0.23			0.31			(0.15	)		—			(0.15	)
Year ended 3-31-2016		11.22		0.17			(0.42	)		(0.25	)		(0.13	)		(0.20	)		(0.33	)
Year ended 3-31-2015		9.89		0.12			1.48			1.60			(0.19	)		(0.08	)		(0.27	)
Year ended 3-31-2014		10.00		0.11			(0.05	)		0.06			(0.17	)		—			(0.17	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) Ratio of expenses to average net assets excluding offering cost was 2.40%.

(7) Ratio of expenses to average net assets excluding offering cost was 2.39%.

(8) Ratio of expenses to average net assets excluding offering cost was 1.43%.

(9) Ratio of expenses to average net assets excluding offering cost was 1.99%.

    .

56 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	10.69		2.56	%	$	13			1.51	%(4)		1.14	%(4)		2.17	%(4)		0.48	%(4)		21	%
Year ended 3-31-2016		10.58		-2.00			29			1.51			1.67			2.12			1.06			59
Year ended 3-31-2015		11.15		16.31			28			1.51			1.22			2.14			0.59			63
Year ended 3-31-2014		9.83		0.02			22			1.51			1.12			2.62			0.01			36
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		10.61		1.90			—	*		2.66	(4)		0.43	(4)		—			—			21
Year ended 3-31-2016		10.56		-3.03			—	*		2.56			0.62			—			—			59
Year ended 3-31-2015		11.10		15.05			—	*		2.66			0.06			—			—			63
Year ended 3-31-2014		9.79		-1.16			—	*		2.68	(6)		-0.02			3.14			-0.48			36
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		10.61		1.88			1			2.78	(4)		0.37	(4)		—			—			21
Year ended 3-31-2016		10.55		-3.21			1			2.74			0.41			—			—			59
Year ended 3-31-2015		11.10		14.92			1			2.68			-0.09			—			—			63
Year ended 3-31-2014		9.80		-1.03			1			2.67	(7)		—			3.12			-0.45			36
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		10.67		2.45			20			1.73	(4)		2.15	(4)		—			—			21
Year ended 3-31-2016		10.57		-2.11			3			1.59			1.59			—			—			59
Year ended 3-31-2015		11.14		16.14			3			1.62			1.08			—			—			63
Year ended 3-31-2014		9.82		-0.13			2			1.71	(8)		0.94			2.16			0.49			36
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		10.65		2.22			1			2.25	(4)		0.84	(4)		—			—			21
Year ended 3-31-2016		10.57		-2.68			—	*		2.20			0.99			—			—			59
Year ended 3-31-2015		11.12		15.40			1			2.25			0.50			—			—			63
Year ended 3-31-2014		9.81		-0.67			—	*		2.27	(9)		0.38			2.73			-0.08			36
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		10.80		3.02			1			1.51	(4)		1.54	(4)		1.94	(4)		1.11	(4)		21
Year ended 3-31-2016		10.64		-2.08			1			1.51			1.63			1.86			1.28			59
Year ended 3-31-2015		11.22		16.32			1			1.51			1.15			1.90			0.76			63
Year ended 3-31-2014		9.89		0.68			1			1.51			1.13			2.37			0.27			36

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 57

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LASALLE GLOBAL-RISK MANAGED REAL ESTATE FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		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 9-30-2016 (unaudited)	$	11.39	$	0.09	$	0.29		$	0.38		$	(0.24	)	$	—		$	(0.24	)
Year ended 3-31-2016		11.06		0.22		0.35			0.57			(0.13	)		(0.11	)		(0.24	)
Year ended 3-31-2015		9.72		0.14		1.48			1.62			(0.28	)		—			(0.28	)
Year ended 3-31-2014		10.00		0.13		(0.24	)		(0.11	)		(0.17	)		—			(0.17	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		11.38		0.06		0.29			0.35			(0.24	)		—			(0.24	)
Year ended 3-31-2016		11.04		0.15		0.33			0.48			(0.03	)		(0.11	)		(0.14	)
Year ended 3-31-2015		9.70		0.06		1.46			1.52			(0.18	)		—			(0.18	)
Year ended 3-31-2014		10.00		0.03		(0.23	)		(0.20	)		(0.10	)		—			(0.10	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		11.38		0.08		0.27			0.35			(0.24	)		—			(0.24	)
Year ended 3-31-2016		11.04		0.13		0.33			0.46			(0.02	)		(0.10	)		(0.12	)
Year ended 3-31-2015		9.70		0.05		1.47			1.52			(0.18	)		—			(0.18	)
Year ended 3-31-2014		10.00		0.03		(0.23	)		(0.20	)		(0.10	)		—			(0.10	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		11.39		0.15		0.26			0.41			(0.25	)		—			(0.25	)
Year ended 3-31-2016		11.07		0.24		0.34			0.58			(0.15	)		(0.11	)		(0.26	)
Year ended 3-31-2015		9.72		0.15		1.47			1.62			(0.27	)		—			(0.27	)
Year ended 3-31-2014		10.00		0.12		(0.24	)		(0.12	)		(0.16	)		—			(0.16	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		11.39		0.08		0.28			0.36			(0.24	)		—			(0.24	)
Year ended 3-31-2016		11.05		0.18		0.34			0.52			(0.07	)		(0.11	)		(0.18	)
Year ended 3-31-2015		9.70		0.09		1.47			1.56			(0.21	)		—			(0.21	)
Year ended 3-31-2014		10.00		0.06		(0.24	)		(0.18	)		(0.12	)		—			(0.12	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		11.40		0.11		0.28			0.39			(0.25	)		—			(0.25	)
Year ended 3-31-2016		11.07		0.23		0.33			0.56			(0.12	)		(0.11	)		(0.23	)
Year ended 3-31-2015		9.72		0.13		1.50			1.63			(0.28	)		—			(0.28	)
Year ended 3-31-2014		10.00		0.13		(0.24	)		(0.11	)		(0.17	)		—			(0.17	)

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) Ratio of expenses to average net assets excluding offering cost was 2.15%.

(7) Ratio of expenses to average net assets excluding offering cost was 1.27%.

(8) Ratio of expenses to average net assets excluding offering cost was 1.88%.

    .

58 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	11.53		3.44	%	$	50		1.51	%(4)		1.62	%(4)		1.64	%(4)		1.49	%(4)		27	%
Year ended 3-31-2016		11.39		5.27			65		1.51			2.08			1.76			1.83			59
Year ended 3-31-2015		11.06		16.77			43		1.50			1.31			1.83			0.98			53
Year ended 3-31-2014		9.72		-1.00			20		1.51			1.39			2.08			0.82			38
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		11.49		3.13			1		2.30	(4)		1.10	(4)		—			—			27
Year ended 3-31-2016		11.38		4.36			1		2.33			1.42			—			—			59
Year ended 3-31-2015		11.04		15.74			1		2.34			0.57			—			—			53
Year ended 3-31-2014		9.70		-1.92			1		2.53	(6)		0.32			2.58			0.27			38
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		11.49		3.10			9		2.28	(4)		1.40	(4)		—			—			27
Year ended 3-31-2016		11.38		4.34			4		2.35			1.24			—			—			59
Year ended 3-31-2015		11.04		15.72			3		2.38			0.43			—			—			53
Year ended 3-31-2014		9.70		-1.91			2		2.53	(6)		0.33			2.58			0.28			38
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		11.55		3.64			55		1.31	(4)		2.64	(4)		1.33	(4)		2.62	(4)		27
Year ended 3-31-2016		11.39		5.37			11		1.39			2.25			—			—			59
Year ended 3-31-2015		11.07		16.79			10		1.47			1.46			—			—			53
Year ended 3-31-2014		9.72		-1.09			8		1.65	(7)		1.20			1.70			1.15			38
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		11.51		3.24			3		1.92	(4)		1.45	(4)		—			—			27
Year ended 3-31-2016		11.39		4.78			2		1.99			1.66			—			—			59
Year ended 3-31-2015		11.05		16.15			2		2.07			0.88			—			—			53
Year ended 3-31-2014		9.70		-1.72			2		2.26	(8)		0.60			2.31			0.55			38
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		11.54		3.46			5		1.51	(4)		1.85	(4)		1.57	(4)		1.79	(4)		27
Year ended 3-31-2016		11.40		5.25			4		1.51			2.19			1.67			2.03			59
Year ended 3-31-2015		11.07		16.87			5		1.51			1.26			1.71			1.06			53
Year ended 3-31-2014		9.72		-0.98			3		1.50			1.35			1.95			0.90			38

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 59

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)(1)			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 9-30-2016 (unaudited)	$	28.60	$	0.12		$	0.92	$	1.04	$	(0.16	)	$	—		$	(0.16	)
Year ended 3-31-2016		29.38		0.33			0.52		0.85		(0.29	)		(1.34	)		(1.63	)
Year ended 3-31-2015		24.35		0.21			5.86		6.07		(0.17	)		(0.87	)		(1.04	)
Year ended 3-31-2014		23.73		0.16			0.69		0.85		(0.23	)		—			(0.23	)
Year ended 3-31-2013		21.27		0.16			2.45		2.61		(0.15	)		—			(0.15	)
Year ended 3-31-2012		19.42		0.09			1.82		1.91		(0.06	)		—			(0.06	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		27.80		0.02			0.86		0.88		(0.07	)		—			(0.07	)
Year ended 3-31-2016		28.58		0.11			0.48		0.59		(0.03	)		(1.34	)		(1.37	)
Year ended 3-31-2015		23.77		(0.03	)		5.67		5.64		—			(0.83	)		(0.83	)
Year ended 3-31-2014		23.17		(0.06	)		0.66		0.60		—			—			—
Year ended 3-31-2013		20.85		(0.06	)		2.38		2.32		—			—			—
Year ended 3-31-2012		19.20		(0.12	)		1.77		1.65		—			—			—
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		28.15		0.05			0.88		0.93		(0.09	)		—			(0.09	)
Year ended 3-31-2016		28.92		0.13			0.52		0.65		(0.08	)		(1.34	)		(1.42	)
Year ended 3-31-2015		24.02		0.00	*		5.78		5.78		(0.01	)		(0.87	)		(0.88	)
Year ended 3-31-2014		23.42		0.00	*		0.67		0.67		(0.07	)		—			(0.07	)
Year ended 3-31-2013		21.00		0.01			2.42		2.43		(0.01	)		—			(0.01	)
Year ended 3-31-2012		19.27		(0.05	)		1.78		1.73		—			—			—
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		28.60		0.16			0.88		1.04		(0.16	)		—			(0.16	)
Year ended 3-31-2016		29.37		0.30			0.54		0.84		(0.27	)		(1.34	)		(1.61	)
Year ended 3-31-2015		24.35		0.13			5.87		6.00		(0.11	)		(0.87	)		(0.98	)
Year ended 3-31-2014		23.72		0.13			0.70		0.83		(0.20	)		—			(0.20	)
Year ended 3-31-2013		21.27		0.14			2.46		2.60		(0.15	)		—			(0.15	)
Year ended 3-31-2012		19.43		0.10			1.81		1.91		(0.07	)		—			(0.07	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		28.75		0.35			0.75		1.10		(0.22	)		—			(0.22	)
Year ended 3-31-2016		29.53		0.44			0.54		0.98		(0.42	)		(1.34	)		(1.76	)
Year ended 3-31-2015		24.50		0.32			5.90		6.22		(0.32	)		(0.87	)		(1.19	)
Year ended 3-31-2014		23.85		0.28			0.69		0.97		(0.32	)		—			(0.32	)
Year ended 3-31-2013		21.37		0.24			2.51		2.75		(0.27	)		—			(0.27	)
Year ended 3-31-2012		19.52		0.22			1.80		2.02		(0.17	)		—			(0.17	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		28.59		0.14			0.88		1.02		(0.13	)		—			(0.13	)
Year ended 3-31-2016		29.37		0.31			0.49		0.80		(0.24	)		(1.34	)		(1.58	)
Year ended 3-31-2015		24.35		0.20			5.81		6.01		(0.12	)		(0.87	)		(0.99	)
Year ended 3-31-2014		23.73		0.15			0.68		0.83		(0.21	)		—			(0.21	)
Year ended 3-31-2013		21.27		0.15			2.44		2.59		(0.13	)		—			(0.13	)
Year ended 3-31-2012		19.43		0.09			1.81		1.90		(0.06	)		—			(0.06	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		28.78		0.25			0.89		1.14		(0.25	)		—			(0.25	)
Year ended 3-31-2016		29.56		0.50			0.52		1.02		(0.46	)		(1.34	)		(1.80	)
Year ended 3-31-2015 (6)		26.13		0.20			4.34		4.54		(0.24	)		(0.87	)		(1.11	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		28.62		0.18			0.89		1.07		(0.19	)		—			(0.19	)
Year ended 3-31-2016		29.40		0.40			0.51		0.91		(0.35	)		(1.34	)		(1.69	)
Year ended 3-31-2015		24.39		0.28			5.84		6.12		(0.24	)		(0.87	)		(1.11	)
Year ended 3-31-2014		23.75		0.24			0.68		0.92		(0.28	)		—			(0.28	)
Year ended 3-31-2013		21.28		0.23			2.45		2.68		(0.21	)		—			(0.21	)
Year ended 3-31-2012		19.44		0.16			1.81		1.97		(0.13	)		—			(0.13	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

    .

60 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	29.48		3.65	%	$	305		1.44	%(4)		0.79	%(4)		1.54	%(4)		0.69	%(4)		29	%
Year ended 3-31-2016		28.60		3.41			507		1.47			1.22			1.57			1.12			66
Year ended 3-31-2015		29.38		25.19			543		1.46			0.78			1.56			0.68			48
Year ended 3-31-2014		24.35		3.65			384		1.56			0.67			1.66			0.57			73
Year ended 3-31-2013		23.73		12.32			341		1.64			0.71			1.68			0.67			43
Year ended 3-31-2012		21.27		9.88			276		1.73			0.45			—			—			55
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		28.61		3.18			4		2.34	(4)		0.13	(4)		2.44	(4)		0.03	(4)		29
Year ended 3-31-2016		27.80		2.48			5		2.37			0.41			2.47			0.31			66
Year ended 3-31-2015		28.58		23.95			6		2.41			-0.10			2.51			-0.20			48
Year ended 3-31-2014		23.77		2.59			6		2.61			-0.28			2.71			-0.38			73
Year ended 3-31-2013		23.17		11.08			7		2.75			-0.29			2.79			-0.33			43
Year ended 3-31-2012		20.85		8.65			7		2.89			-0.62			—			—			55
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		28.99		3.29			20		2.13	(4)		0.37	(4)		2.23	(4)		0.27	(4)		29
Year ended 3-31-2016		28.15		2.67			19		2.18			0.48			2.28			0.38			66
Year ended 3-31-2015		28.92		24.27			21		2.18			0.01			2.28			-0.09			48
Year ended 3-31-2014		24.02		2.90			14		2.27			0.02			2.37			-0.08			73
Year ended 3-31-2013		23.42		11.50			15		2.35			0.03			2.39			-0.01			43
Year ended 3-31-2012		21.00		9.03			12		2.49			-0.28			—			—			55
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		29.48		3.64			4		1.45	(4)		1.10	(4)		1.79	(4)		0.76	(4)		29
Year ended 3-31-2016		28.60		3.36			4		1.52			1.11			1.87			0.76			66
Year ended 3-31-2015		29.37		24.88			4		1.67			0.49			1.93			0.23			48
Year ended 3-31-2014		24.35		3.58			2		1.67			0.54			2.15			0.06			73
Year ended 3-31-2013		23.72		12.27			2		1.67			0.61			2.27			0.01			43
Year ended 3-31-2012		21.27		9.90			1		1.67			0.50			2.36			-0.19			55
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		29.63		3.85			221		1.06	(4)		2.29	(4)		1.16	(4)		2.19	(4)		29
Year ended 3-31-2016		28.75		3.86			13		1.03			1.58			1.13			1.48			66
Year ended 3-31-2015		29.53		25.74			13		1.02			1.18			1.12			1.08			48
Year ended 3-31-2014		24.50		4.20			9		1.02			1.18			1.12			1.08			73
Year ended 3-31-2013		23.85		12.95			7		1.09			1.06			1.12			1.03			43
Year ended 3-31-2012		21.37		10.46			3		1.15			1.15			—			—			55
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		29.48		3.58			2		1.63	(4)		0.95	(4)		1.73	(4)		0.85	(4)		29
Year ended 3-31-2016		28.59		3.21			2		1.65			1.13			1.75			1.03			66
Year ended 3-31-2015		29.37		24.92			2		1.64			0.72			1.74			0.62			48
Year ended 3-31-2014		24.35		3.58			1		1.66			0.62			1.76			0.52			73
Year ended 3-31-2013		23.73		12.23			2		1.71			0.69			1.75			0.65			43
Year ended 3-31-2012		21.27		9.84			1		1.73			0.49			—			—			55
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		29.67		3.96			3		0.87	(4)		1.66	(4)		0.97	(4)		1.56	(4)		29
Year ended 3-31-2016		28.78		4.02			3		0.87			1.83			0.97			1.73			66
Year ended 3-31-2015 (6)		29.56		17.66			4		0.86	(4)		1.10	(4)		0.96	(4)		1.00	(4)		48	(7)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		29.50		3.75			159		1.26	(4)		1.25	(4)		1.36	(4)		1.15	(4)		29
Year ended 3-31-2016		28.62		3.62			152		1.26			1.46			1.36			1.36			66
Year ended 3-31-2015		29.40		25.41			180		1.26			1.05			1.36			0.95			48
Year ended 3-31-2014		24.39		3.97			143		1.27			1.03			1.37			0.93			73
Year ended 3-31-2013		23.75		12.63			168		1.34			1.06			1.37			1.03			43
Year ended 3-31-2012		21.28		10.24			149		1.39			0.82			—			—			55

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 61

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 Loss(1)			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 9-30-2016 (unaudited)	$	46.35	$	(0.16	)	$	4.62		$	4.46		$	—	$	—		$	—
Year ended 3-31-2016		55.95		(0.35	)		(7.99	)		(8.34	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		52.71		(0.36	)		4.77			4.41			—		(1.17	)		(1.17	)
Year ended 3-31-2014		39.79		(0.30	)		14.54			14.24			—		(1.32	)		(1.32	)
Year ended 3-31-2013		33.54		(0.27	)		6.71			6.44			—		(0.19	)		(0.19	)
Year ended 3-31-2012		35.09		(0.32	)		0.93			0.61			—		(2.16	)		(2.16	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		39.32		(0.29	)		3.90			3.61			—		—			—
Year ended 3-31-2016		48.01		(0.63	)		(6.80	)		(7.43	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		45.73		(0.65	)		4.10			3.45			—		(1.17	)		(1.17	)
Year ended 3-31-2014		34.92		(0.59	)		12.72			12.13			—		(1.32	)		(1.32	)
Year ended 3-31-2013		29.69		(0.48	)		5.90			5.42			—		(0.19	)		(0.19	)
Year ended 3-31-2012		31.58		(0.53	)		0.77			0.24			—		(2.13	)		(2.13	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		40.70		(0.28	)		4.04			3.76			—		—			—
Year ended 3-31-2016		49.63		(0.63	)		(7.04	)		(7.67	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		47.21		(0.65	)		4.24			3.59			—		(1.17	)		(1.17	)
Year ended 3-31-2014		35.99		(0.58	)		13.12			12.54			—		(1.32	)		(1.32	)
Year ended 3-31-2013		30.57		(0.47	)		6.08			5.61			—		(0.19	)		(0.19	)
Year ended 3-31-2012		32.41		(0.51	)		0.80			0.29			—		(2.13	)		(2.13	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		46.08		(0.17	)		4.59			4.42			—		—			—
Year ended 3-31-2016		55.70		(0.42	)		(7.94	)		(8.36	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		52.57		(0.45	)		4.75			4.30			—		(1.17	)		(1.17	)
Year ended 3-31-2014		39.74		(0.38	)		14.53			14.15			—		(1.32	)		(1.32	)
Year ended 3-31-2013		33.48		(0.29	)		6.74			6.45			—		(0.19	)		(0.19	)
Year ended 3-31-2012		35.04		(0.33	)		0.92			0.59			—		(2.15	)		(2.15	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		50.49		(0.09	)		5.03			4.94			—		—			—
Year ended 3-31-2016		60.64		(0.22	)		(8.67	)		(8.89	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		56.87		(0.23	)		5.17			4.94			—		(1.17	)		(1.17	)
Year ended 3-31-2014		42.72		(0.19	)		15.66			15.47			—		(1.32	)		(1.32	)
Year ended 3-31-2013		35.88		(0.17	)		7.20			7.03			—		(0.19	)		(0.19	)
Year ended 3-31-2012		37.36		(0.23	)		1.01			0.78			—		(2.26	)		(2.26	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		45.45		(0.22	)		4.52			4.30			—		—			—
Year ended 3-31-2016		55.05		(0.49	)		(7.85	)		(8.34	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		52.04		(0.52	)		4.70			4.18			—		(1.17	)		(1.17	)
Year ended 3-31-2014		39.42		(0.46	)		14.40			13.94			—		(1.32	)		(1.32	)
Year ended 3-31-2013		33.32		(0.36	)		6.65			6.29			—		(0.19	)		(0.19	)
Year ended 3-31-2012		34.93		(0.40	)		0.92			0.52			—		(2.13	)		(2.13	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		50.62		(0.05	)		5.05			5.00			—		—			—
Year ended 3-31-2016		60.70		(0.12	)		(8.70	)		(8.82	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015(6)		57.21		(0.12	)		4.78			4.66			—		(1.17	)		(1.17	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		48.70		(0.15	)		4.85			4.70			—		—			—
Year ended 3-31-2016		58.68		(0.34	)		(8.38	)		(8.72	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		55.20		(0.35	)		5.00			4.65			—		(1.17	)		(1.17	)
Year ended 3-31-2014		41.60		(0.31	)		15.23			14.92			—		(1.32	)		(1.32	)
Year ended 3-31-2013		35.03		(0.26	)		7.02			6.76			—		(0.19	)		(0.19	)
Year ended 3-31-2012		36.54		(0.31	)		0.98			0.67			—		(2.18	)		(2.18	)

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

    .

62 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	50.81		9.62	%	$	1,231		1.33	%(4)		-0.69	%(4)		—	%		—	%		4	%
Year ended 3-31-2016		46.35		-15.10			1,790		1.28			-0.69			—			—			24
Year ended 3-31-2015		55.95		8.48			2,198		1.26			-0.67			—			—			32
Year ended 3-31-2014		52.71		35.99			1,998		1.26			-0.63			—			—			35
Year ended 3-31-2013		39.79		19.28			759		1.37			-0.79			—			—			43
Year ended 3-31-2012		33.54		3.01			549		1.39			-1.02			—			—			51
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		42.93		9.18			49		2.07	(4)		-1.42	(4)		—			—			4
Year ended 3-31-2016		39.32		-15.71			52		2.02			-1.42			—			—			24
Year ended 3-31-2015		48.01		7.67			69		2.01			-1.42			—			—			32
Year ended 3-31-2014		45.73		34.91			71		2.04			-1.42			—			—			35
Year ended 3-31-2013		34.92		18.37			40		2.17			-1.59			—			—			43
Year ended 3-31-2012		29.69		2.15			32		2.24			-1.86			—			—			51
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		44.46		9.24			750		2.00	(4)		-1.35	(4)		—			—			4
Year ended 3-31-2016		40.70		-15.68			833		1.97			-1.37			—			—			24
Year ended 3-31-2015		49.63		7.73			999		1.95			-1.37			—			—			32
Year ended 3-31-2014		47.21		35.02			776		1.97			-1.34			—			—			35
Year ended 3-31-2013		35.99		18.47			278		2.07			-1.50			—			—			43
Year ended 3-31-2012		30.57		2.25			219		2.13			-1.76			—			—			51
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		50.50		9.59			22		1.36	(4)		-0.70	(4)		1.60	(4)		-0.94	(4)		4
Year ended 3-31-2016		46.08		-15.21			21		1.41			-0.82			1.54			-0.95			24
Year ended 3-31-2015		55.70		8.29			22		1.43			-0.84			1.55			-0.96			32
Year ended 3-31-2014		52.57		35.80			17		1.43			-0.80			1.63			-1.00			35
Year ended 3-31-2013		39.74		19.31			9		1.43			-0.85			1.91			-1.33			43
Year ended 3-31-2012		33.48		3.00			6		1.43			-1.06			2.01			-1.64			51
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		55.43		9.78			1,241		1.00	(4)		-0.35	(4)		—			—			4
Year ended 3-31-2016		50.49		-14.84			1,364		0.97			-0.39			—			—			24
Year ended 3-31-2015		60.64		8.79			1,871		0.97			-0.39			—			—			32
Year ended 3-31-2014		56.87		36.37			1,411		0.99			-0.36			—			—			35
Year ended 3-31-2013		42.72		19.70			322		1.04			-0.46			—			—			43
Year ended 3-31-2012		35.88		3.37			186		1.06			-0.69			—			—			51
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		49.75		9.46			104		1.59	(4)		-0.94	(4)		—			—			4
Year ended 3-31-2016		45.45		-15.35			110		1.57			-0.98			—			—			24
Year ended 3-31-2015		55.05		8.15			114		1.57			-0.98			—			—			32
Year ended 3-31-2014		52.04		35.56			105		1.59			-0.96			—			—			35
Year ended 3-31-2013		39.42		18.96			56		1.64			-1.07			—			—			43
Year ended 3-31-2012		33.32		2.76			42		1.64			-1.27			—			—			51
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		55.62		9.88			87		0.84	(4)		-0.18	(4)		—			—			4
Year ended 3-31-2016		50.62		-14.71			65		0.83			-0.22			—			—			24
Year ended 3-31-2015(6)		60.70		8.25			12		0.82	(4)		-0.32	(4)		—			—			32	(7)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		53.40		9.65			709		1.24	(4)		-0.59	(4)		—			—			4
Year ended 3-31-2016		48.70		-15.04			754		1.22			-0.63			—			—			24
Year ended 3-31-2015		58.68		8.53			1,030		1.22			-0.63			—			—			32
Year ended 3-31-2014		55.20		36.02			1,043		1.24			-0.61			—			—			35
Year ended 3-31-2013		41.60		19.40			552		1.29			-0.71			—			—			43
Year ended 3-31-2012		35.03		3.10			399		1.30			-0.93			—			—			51

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 63

NOTES TO FINANCIAL STATEMENTS IVY FUNDS (tabular amounts in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

1. ORGANIZATION

Ivy Funds, a Delaware statutory trust (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 Balanced Fund, Ivy Energy Fund, Ivy Global Natural Resources Fund, Ivy LaSalle Global Real Estate Fund, Ivy LaSalle Global Risk-Managed Real Estate Fund, Ivy Real Estate Securities Fund and Ivy Science and Technology Fund (each, a “Fund”) are eight 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 (“SAI”). 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, Class Y, and Class R shares. The Funds’ Class B shares are not available for purchase by new and existing investors. Class B shares will continue to be available for dividend reinvestment and exchanges from Class B shares of another fund within Ivy Funds. Certain Funds may also offer Class E shares. Class E shares are closed for all investments in the Ivy Balanced Fund and Ivy Energy Fund. Certain Funds may also offer Class R6 shares. Class A and Class E shares are sold at their offering price, which is normally net asset value (“NAV”) plus a front-end sales charge. For Class A shares, a 1% contingent deferred sales charge (“CDSC”) is only imposed on shares purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. Class B and Class C shares are sold without a front-end sales charge, but may be subject to a CDSC. Class I, Class R, Class R6 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 NAV 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 and Class R6 shares are not included in the plan. Class B shares will automatically convert to Class A shares 96 months after the date of purchase.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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. All or a portion of the distributions received from a real estate investment trust or publicly traded partnership may be designated as a reduction of cost of the related investment or realized gain.

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 approved by the Board of Trustees of the Trust (the “Board”). 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 value when computing net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments. Foreign exchange rates are typically valued as of the close of the New York Stock Exchange (“NYSE”), normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

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 to 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. The Funds file income tax returns in U.S. federal and applicable state jurisdictions. The Funds’ tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax returns. Management of the Trust periodically reviews all tax positions to assess whether 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 the date of these financial statements, management believes that no liability for unrecognized tax positions is required.

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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 (“U.S. GAAP”). If the total dividends and distributions made in any tax year exceed net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a return of capital for tax purposes.

Segregation and Collateralization. In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”), the Dodd Frank Wall Street Reform and Consumer Protection Act, or the interpretive rules and regulations of the U.S. Commodities Futures Trading Commission 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 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. Certain countries require that cash reserves be held while investing in companies incorporated in that country. These cash reserves and cash collateral that has been pledged to cover obligations of the Funds under derivative contracts, if any, will be reported separately on the Statement of Assets and Liabilities as “Restricted cash”. Securities collateral pledged for the same purpose, if any, is noted on the Schedule of Investments.

Concentration of Market and Credit Risk. In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded on the Funds’ Statement of Assets and Liabilities, less any collateral held by the Funds.

Certain Funds may hold high-yield and non-investment-grade bonds, that 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.

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 on the Statement of Assets and Liabilities.

If a Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in financial derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad.

Inflation-Indexed Bonds. Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity.

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.

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Loans. Certain Funds may invest in loans, the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates, the debtor of which may be a domestic or foreign corporation, partnership or other entity (“Borrower”). Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates generally include prime rates of one or more major U.S. banks, the London Interbank Offered Rate (“LIBOR”) or certificates of deposit rates. Loans often require prepayments from excess cash flow or permit the Borrower to repay at its election. The degree to which Borrowers repay cannot be predicted with accuracy. As a result, the actual maturity may be substantially less than the stated maturities. Loans are exempt from registration under the Securities Act of 1933, as amended, may contain certain restrictions on resale, and cannot be sold publicly. A Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties.

When a Fund purchases assignments, it acquires all the rights and obligations under the loan agreement of the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than those held by the assigning lender. When a Fund purchases a participation of a loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation. A participation interest in loans includes the right to receive payments of principal, interest and any fees to which it is entitled from the lender and only upon receipt by the lender of payments from the Borrower, but not from the Borrower directly. When investing in a participation interest, if a Borrower is unable to meet its obligations under a loan agreement, a Fund generally has no direct right to enforce compliance with the terms of the loan agreement. As a result, the Fund assumes the credit risk of the Borrower, the selling participant, and any other persons that are interpositioned between the Fund and the Borrower. If the lead lender in a typical lending syndicate becomes insolvent, enters Federal Deposit Insurance Corporation (“FDIC”) receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in receiving payment or may suffer a loss of principal and interest.

Payment In-Kind Securities. Certain Funds may invest in payment in-kind securities (“PIKs”). PIKs give the issuer the option at each interest payment date of making interest payments in cash or in additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro-rata adjustment from the unrealized appreciation or depreciation on investments to interest receivable on the Statement of Assets and Liabilities.

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 NAV to the extent the Fund executes such transactions while remaining substantially fully invested. When a Fund engages in when-issued or delayed delivery transactions, 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 subadviser, as applicable, consider advantageous. The Fund maintains internally designated assets with a 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.

Custodian Fees. “Custodian fees” on 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. 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.

Independent Trustees and Chief Compliance Officer Fees. Fees paid to the Independent Trustees can be paid in cash or deferred to a later date, at the election of the Trustees 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 Chief Compliance Officer of the Funds are shown on the Statement of Operations.

Indemnification. 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 indemnification. The Trust’s maximum

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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.

Basis of Preparation. Each Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). The accompanying financial statements were prepared in accordance with U.S. GAAP, including but not limited to ASC 946. U.S. GAAP requires the use of estimates made by management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity.

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

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Each Fund’s investments are reported at fair value. 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. Each Fund calculates the NAV of its shares as of the close of the NYSE, normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

For purposes of calculating the NAV, the portfolio securities and financial instruments are valued on each business day using pricing and valuation methods as adopted by the Board. Where market quotes are readily available, fair value is generally determined on the basis of the last reported sales price, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services.

Prices for fixed-income securities are typically based on quotes that are obtained from an independent pricing service approved by the Board. 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.

Short-term securities with maturities of 60 days or less are valued based on quotes that are obtained from an independent pricing service approved by the Board as described in the preceding paragraph above.

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. Waddell & Reed Services Company (“WRSCO”), pursuant to procedures adopted by the Board, 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 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.

Where market quotes are not readily available, portfolio securities or financial instruments are valued at fair value, as determined in good faith by the Board or Valuation Committee pursuant to procedures approved by the Board.

Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the NYSE close, that materially affect the values of a Fund’s securities or financial instruments. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available.

The Board has delegated to WRSCO the responsibility for monitoring significant events that may materially affect the values of a Fund’s securities or financial instruments and for determining whether the value of the applicable securities or financial instruments should be re-evaluated in light of such significant events. The Board has established a Valuation Committee to administer and oversee the valuation process, including the use of third party pricing vendors.

The Board has adopted methods for valuing securities and financial instruments in circumstances where market quotes are not readily available. For instances in which daily market quotes are not readily available, investments may be valued, pursuant to procedures established by the Board, with reference to other securities or indices. In the event that the security or financial instrument cannot be valued pursuant to one of the valuation methods established by the Board, the value of the security or financial instrument will be determined in good faith by the Valuation Committee in accordance with the procedures adopted by the Board.

When a Fund uses these fair valuation methods applied by WRSCO that use significant unobservable inputs to determine its NAV, securities will be priced by a method that the Board or persons acting at its direction believe accurately reflects fair value and are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. The prices used by a Fund may differ from the value that will ultimately be realized at the time the securities are sold.

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WRSCO is responsible for monitoring the implementation of the pricing and valuation policies through a series of activities to provide reasonable comfort of the accuracy of prices including: 1) periodic vendor due diligence meetings to review methodologies, new developments, and process at vendors, 2) daily and monthly multi-source pricing comparisons reviewed and submitted to the Valuation Committee, and 3) daily review of unpriced, stale, and variance reports with exceptions reviewed by management and the Valuation Committee.

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 as follows:

Level 1 – Observable input such as quoted prices, available in active markets, for identical assets or liabilities.

Level 2 – Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

Level 3 – Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at its direction that are used in determining the fair value of investments.

A description of the valuation techniques applied to the Funds’ major classes of assets and liabilities measured at fair value on a recurring basis follows:

Asset-Backed Securities and Mortgage-Backed Securities. The fair value of asset-backed securities and mortgage-backed securities are estimated using recently executed transactions and based on models that consider the estimated cash flows of each debt tranche of the issuer, establish a benchmark yield, and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche including, but not limited to, the prepayment speed assumptions and attributes of the collateral. To the extent the inputs are observable and timely, the values would be categorized in Level 2 of the fair value hierarchy, and otherwise they would be categorized as Level 3.

Bullion. The fair value of bullion is at the last settlement price at the end of each day on the board of trade or exchange upon which they are traded and are categorized in Level 1 of the fair value hierarchy.

Corporate Bonds. The fair value of corporate bonds, as obtained from an independent pricing service, is estimated using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. While most corporate bonds are categorized in Level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3 of the fair value hierarchy.

Derivative Instruments. Forward foreign currency contracts are valued based upon the closing prices of the forward currency rates determined at the close of the NYSE, are provided by an independent pricing service. Swaps derive their value from underlying asset prices, indices, reference rates and other inputs or a combination of these factors. Swaps are valued by an 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. Listed options are ordinarily valued at the mean of the last bid and ask price provided by an independent pricing service unless the price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer. Over-the-counter (“OTC”) options are ordinarily valued at the mean of the last bid and ask price provided by an independent pricing service for a comparable listed option unless such a price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer. If no comparable listed option exists from which to obtain a price from an independent pricing service and a quotation cannot be obtained from a broker-dealer, the OTC option will be valued using a model reasonably designed to provide a current market price.

Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. OTC derivative contracts include forward foreign currency contracts, swap agreements, and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices. Depending on the product and the terms of the transaction, the fair value of the OTC derivative products

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are modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgments and the pricing inputs are observed from actively quoted markets, as is the case with interest rate swap and option contracts. OTC derivative products valued using pricing models with significant observable inputs are categorized within Level 2 of the fair value hierarchy.

Equity Securities. 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. OTC equity securities and listed securities for which no price is readily available are valued at the average of the last bid and ask prices.

Mutual funds, including investment funds, typically are valued at the NAV reported as of the valuation date.

Securities that are stated at the last reported sales price or closing price on the day of valuation taken from the primary exchange where the security is principally traded and to the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.

Foreign securities, for which the primary trading market closes at the same time or after the NYSE, are valued based on quotations from the primary market in which they are traded and categorized in Level 1. Because many foreign securities markets and exchanges close prior to the close of the NYSE, closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intra-day trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, exchange-traded funds, and the movement of certain indices of securities based on a statistical analysis of their historical relationship; such valuations generally are categorized in Level 2.

Preferred stock, repurchase agreements, and other equities traded on inactive markets or valued by reference to similar instruments are also generally categorized in Level 2.

Loans. Loans are valued using a price or composite price from one or more brokers or dealers as obtained from an independent pricing service. The fair value of loans is estimated using recently executed transactions, market price quotations, credit/market events, and cross-asset pricing. Inputs are generally observable market inputs obtained from independent sources. Loans are generally categorized in Level 2 of the fair value hierarchy, unless key inputs are unobservable in which case they would be categorized as Level 3.

Municipal Bonds. Municipal bonds are fair valued based on pricing models used by and obtained from an independent pricing service that take into account, among other factors, information received from market makers and broker-dealers, current trades, bid-wants lists, offerings, market movements, the callability of the bond, state of issuance, benchmark yield curves, and bond insurance. To the extent that these inputs are observable and timely, the fair values of municipal bonds would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.

Restricted Securities. Restricted securities that are deemed to be Rule 144A securities and illiquid, as well as restricted securities held in non-public entities, are included in Level 3 of the fair value hierarchy to the extent that significant inputs to valuation are unobservable, because they trade infrequently, if at all and, therefore, the inputs are unobservable. Restricted securities that are valued at a discount to similar publicly traded securities may be categorized as Level 2 of the fair value hierarchy to the extent that the discount is considered to be insignificant to the fair value measurement in its entirety; otherwise they may be categorized as Level 3.

U.S. Government and Agency Securities. U.S. government and agency securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, quoted market prices, and reference data. Accordingly, U.S. government and agency securities are normally categorized in Level 2 of the fair value hierarchy depending on the liquidity and transparency of the market.

Transfers from Level 2 to Level 3 occurred primarily 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 primarily due to the increased availability of observable market data due to increased market activity or information. Transfers between levels represent the values as of the beginning of the reporting period.

For fair valuations using unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and Level 3 reconciliation, if any, have been included in the Notes to the Schedule of Investments for each respective Fund.

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 and/or affiliated securities and in net change in unrealized appreciation (depreciation) on investments in unaffiliated and/or

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affiliated securities, respectively. Additionally, the net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of September 30, 2016, if applicable, is included on the Statement of Operations in net change in unrealized appreciation (depreciation) on investments in unaffiliated and/or affiliated securities.

4. DERIVATIVE INSTRUMENTS ($ amounts in thousands unless indicated otherwise)

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 positions 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 provided by an independent pricing service 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 on the Statement of Assets and Liabilities as a receivable or payable and on 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) on 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 that is not collateralized.

Ivy Asset Strategy Fund and Ivy Global Natural Resources Fund enter into forward foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from foreign currencies (foreign currency exchange rate risk).

Option Contracts. Options purchased by a Fund are accounted for in the same manner as portfolio securities. The cost of instruments acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from instruments 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 value of the option written. 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 written call option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining whether a Fund has realized a gain or loss. When a written put is exercised, the cost basis of the instruments 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 instrument. With written options, there may be times when a Fund will be required to purchase or sell instruments 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 instrument. Additionally, to the extent a Fund enters into 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.

Ivy Asset Strategy Fund, Ivy Balanced Fund and Ivy Science and Technology Fund purchase and write call and put options to increase or decrease hedging exposure to underlying instruments (which include credit risk, equity risk, foreign currency exchange rate risk, event risk and/or interest rate risk), increase exposure to various equity markets or certain sectors, gain exposure to or facilitate trading in certain securities and/or, in the case of options written, to generate returns from options premiums.

Collateral and rights of offset. A Fund may mitigate credit risk with respect to OTC derivative counterparties 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 against each other with collateral, which is generally held by the Fund’s custodian or broker. 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 2 “Segregation and Collateralization” for additional information with respect to collateral practices.

70 SEMIANNUAL REPORT 2016

Offsetting of Assets and Liabilities. The following tables present financial instruments that are either (1) offset or (2) subject to an enforceable master netting arrangement or similar agreement as of September 30, 2016:

Assets

							Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Statement of Assets and Liabilities		Net Amounts of Assets Presented on the Statement of Assets and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Received			Cash Collateral Received			Net Amount Receivable
Ivy Asset Strategy Fund
Investments in unaffiliated securities at value*	$	21	$	—	$	21	$	(21	)	$	—		$	—		$	—
Unrealized appreciation on forward foreign currency contracts		451		—		451		—			—			(451	)		—
Total	$	472	$	—	$	472	$	(21	)	$	—		$	(451	)	$	—
Ivy Global Natural Resources Fund
Unrealized appreciation on forward foreign currency contracts	$	648	$	—	$	648	$	—		$	(631	)	$	—		$	17
Ivy Science and Technology Fund
Investments in unaffiliated securities at value*	$	16	$	—	$	16	$	(13	)	$	—		$	—		$	3

* Purchased options are reported as investments in unaffiliated securities on the Statement of Assets and Liabilities.

Liabilities

							Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented on the Statement of Assets and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Pledged			Cash Collateral Pledged		Net Amount Payable
Ivy Asset Strategy Fund
Written options at value	$	4,192	$	—	$	4,192	$	(21	)	$	(4,171	)	$	—	$	—
Ivy Science and Technology Fund
Written options at value	$	13	$	—	$	13	$	(13	)	$	—		$	—	$	—

2016 SEMIANNUAL REPORT 71

Additional Disclosure Related to Derivative Instruments

Fair values of derivative instruments as of September 30, 2016:

		Assets			Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value		Statement of Assets & Liabilities Location	Value
Ivy Asset Strategy Fund	Equity	Investments in unaffiliated securities at value*		$21	Written options at value		$4,192
	Foreign currency	Unrealized appreciation on forward foreign currency contracts		451			—
Ivy Global Natural Resources Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		648			—
Ivy Science and Technology Fund	Equity	Investments in unaffiliated securities at value*		34	Written options at value		13

* Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 2016:

		Net realized gain (loss) on:
Fund	Type of Risk Exposure	Investments in unaffiliated securities*			Swap agreements		Futures contracts		Written options		Forward foreign currency contracts			Total
Ivy Asset Strategy Fund	Equity	$	(3,193)		$	—	$	—	$	5,073	$	—		$	1,880
	Foreign currency		—			—		—		—		(918	)		(918	)
Ivy Balanced Fund	Equity		(38,339	)		—		—		7,189		—			(31,150	)
Ivy Global Natural Resources Fund	Foreign currency		—			—		—		—		4,747			4,747
Ivy Science and Technology Fund	Equity		(83	)		—		—		3,551		—			3,468

* Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

Change in unrealized appreciation (depreciation) on derivatives recognized on the Statement of Operations for the period ended September 30, 2016:

		Net change in unrealized appreciation (depreciation) on:
Fund	Type of Risk Exposure	Investments in unaffiliated securities*			Swap agreements		Futures contracts		Written options			Forward foreign currency contracts		Total
Ivy Asset Strategy Fund	Equity	$	(3,625)		$	—	$	—	$	(444)		$	—	$	(4,069)
	Foreign currency		—			—		—		—			1,183		1,183
Ivy Balanced Fund	Equity		15,179			—		—		(2,654	)		—		12,525
Ivy Global Natural Resources Fund	Foreign currency		—			—		—		—			393		393
Ivy Science and Technology Fund	Equity		(1,460	)		—		—		(1,237	)		—		(2,697	)

* Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

72 SEMIANNUAL REPORT 2016

During the period ended September 30, 2016, the average derivative volume was as follows:

Fund	Forward foreign currency contracts(1)		Long futures contracts(1)		Short futures contracts(1)		Swap agreements(2)		Purchased options(1)		Written options(1)
Ivy Asset Strategy Fund	$	18	$	—	$	—	$	—	$	1,664	$	5,018
Ivy Balanced Fund		—		—		—		—		2,853		428
Ivy Global Natural Resources Fund		766		—		—		—		—		—
Ivy Science and Technology Fund		—		—		—		—		461		1,669

(1) Average value outstanding during the period.

(2) Average notional amount outstanding during the period.

5. WRITTEN OPTION ACTIVITY ($ amounts in thousands)

Transactions in written options were as follows:

Fund	Outstanding at 3-31-16		Options written		Options closed			Options exercised			Options expired			Outstanding at 9-30-16
Ivy Asset Strategy Fund
Number of Contracts		N/A		69,074		(11,709	)		(21,206	)		(19,623	)		16,536
Premium Received		N/A	$	23,091	$	(2,370	)	$	(14,062	)	$	(2,911	)	$	3,748
Ivy Balanced Fund
Number of Contracts		7,515		4,028		—			—			(11,543	)		N/A
Premium Received	$	4,565	$	2,624	$	—		$	—		$	(7,189	)		N/A
Ivy Science and Technology Fund
Number of Contracts		29,318		104,115		(86,347	)		(4,061	)		(37,726	)		5,299
Premium Received	$	1,462	$	19,638	$	(19,280	)	$	(410	)	$	(1,209	)	$	201

6. BASIS FOR CONSOLIDATION OF THE IVY ASSET STRATEGY FUND

Ivy ASF II, Ltd. (the “Subsidiary”), a Cayman Islands exempted company, was incorporated as a wholly owned subsidiary acting as an investment vehicle for the Ivy Asset Strategy Fund (referred to as “the Fund” in this subsection). Ivy ASF III (SBP), LLC and Ivy ASF, LLC (each a “Company”, collectively “the Companies”), Delaware limited liability companies, were incorporated as wholly owned companies acting as investment vehicles for the Fund. The Subsidiary and each Company acts as an investment vehicle for the Fund, in order to effect certain investments for the Fund consistent with the Fund’s investment objectives and policies as specified in its prospectus and SAI.

The Fund’s investment portfolio has been consolidated and includes the portfolio holdings of the Fund, its Subsidiary and the Companies. The consolidated financial statements include the accounts of the Fund and its Subsidiary and the Companies. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between the Fund and its Subsidiary and each Company comprising the entire issued share capital of the Subsidiary and each Company with the intent that the Fund will remain the sole shareholder and retain all rights. Under the Articles of Association, shares issued by the Subsidiary and each Company confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and each Company and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary and each Company.

See the table below for details regarding the structure, incorporation and relationship as of September 30, 2016 of the Subsidiary and each Company to the Fund (amounts in thousands).

Subsidiary/Company	Date of Incorporation		Subscription Agreement		Fund Net Assets		Subsidiary Net Assets		Percentage of Fund Net Assets
Ivy ASF II, Ltd.		1-31-13		4-10-13	$	6,338,183	$	484,096		7.64	%
Ivy ASF III (SBP), LLC		4-9-13		4-23-13	$	6,338,183		137,473		2.17
Ivy ASF, LLC		12-10-12		12-18-12	$	6,338,183		27,276		0.43

2016 SEMIANNUAL REPORT 73

7. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS

($ amounts in thousands unless indicated otherwise)

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 as a percentage of average daily net assets:

Fund (M - Millions)	$0 to $500M			$500 to $1,000M			$1,000 to $2,000M			$2,000 to $3,000M			$3,000 to $5,000M			$5,000 to $8,000M			$8,000 to $10,000M			$10,000 to $13,000M			$13,000 to $28,000M			$28,000 to $53,000M			Over $53,000M
Ivy Asset Strategy Fund		0.700	%		0.700	%		0.650	%		0.600	%		0.550	%		0.550	%		0.550	%		0.550	%		0.550	%		0.545	%		0.540	%
Ivy Balanced Fund		0.700			0.700			0.650			0.600			0.550			0.540			0.540			0.530			0.530			0.530			0.530
Ivy Energy Fund		0.850			0.850			0.830			0.800			0.760			0.750			0.750			0.740			0.740			0.740			0.740
Ivy Global Natural Resources Fund		1.000			0.850			0.830			0.800			0.760			0.730			0.730			0.700			0.700			0.700			0.700
Ivy LaSalle Global Real Estate Fund		0.950			0.950			0.920			0.870			0.840			0.820			0.820			0.800			0.800			0.800			0.800
Ivy LaSalle Global Risk-Managed Real Estate Fund		0.950			0.950			0.920			0.870			0.840			0.820			0.820			0.800			0.800			0.800			0.800
Ivy Real Estate Securities Fund		0.900			0.900			0.870			0.840			0.800			0.760			0.760			0.720			0.720			0.720			0.720
Ivy Science and Technology Fund		0.850			0.850			0.830			0.800			0.760			0.760			0.755			0.755			0.750			0.750			0.750

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 period ended September 30, 2016.

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

Under an agreement between IICO and Advantus Capital Management, Inc. (“Advantus”), Advantus serves as subadviser to Ivy Real Estate Securities Fund. Under an agreement between IICO and LaSalle Investment Management Securities, LLC (“LaSalle”), LaSalle serves as subadviser to Ivy LaSalle Global Real Estate Fund and Ivy LaSalle Global Risk-Managed Real Estate Fund. Each subadviser makes investment decisions in accordance with the Fund’s investment objectives, policies and restrictions under the supervision of IICO and the oversight of the Board. IICO pays all applicable costs of the subadvisers.

Accounting Services Fees. The Trust has an Accounting and Administrative Services Agreement with WRSCO, 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 based on the average net asset levels shown in the following table:

(M - Millions)	$0 to $10M		$10 to $25M		$25 to $50M		$50 to $100M		$100 to $200M		$200 to $350M		$350 to $550M		$550 to $750M		$750 to $1,000M		Over $1,000M
Annual Fee Rate	$	0.00	$	11.50	$	23.10	$	35.50	$	48.40	$	63.20	$	82.50	$	96.30	$	121.60	$	148.50

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.

Each Fund also pays WISC a monthly administrative 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 and is included in “Accounting services fee” on the Statement of Operations.

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 per account; however, WISC has agreed to reduce

74 SEMIANNUAL REPORT 2016

that fee if the number of total shareholder accounts within the Complex (Waddell & Reed Advisors Funds, InvestEd Portfolios and Ivy Funds) reaches certain levels. For Class R shares, each Fund pays a monthly fee equal to one-twelfth of 0.25 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. For Class R6 shares, each Fund pays WISC a monthly fee equal to one-twelfth of 0.01 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. The Fund will reimburse WISC for such costs if the annual rate of the third-party per account charges for a Fund are less than or equal to $12.00 per account or an annual fee of 0.14 of 1% that is based on average daily net assets.

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 (up to $18.00 per account), or a fixed rate fee (up to an annual fee of 0.20 of 1% that is based on average daily net assets), based on the average daily NAV 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 1940 Act (the “Distribution and Service Plan”), each Fund may pay a distribution and/or service fee to Ivy Distributors, Inc. (“IDI”) 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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, IDI receives sales commissions (which are not an expense of the Trust) for sales of Class A and Class E shares. A 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 IDI. During the period ended September 30, 2016, IDI received the following amounts in sales commissions and CDSCs:

	Gross Sales Commissions		CDSC											Commissions Paid(1)
			Class A			Class B			Class C			Class E
Ivy Asset Strategy Fund	$	265	$	—	*	$	386		$	200		$	—	$	317
Ivy Balanced Fund		407		3			62			50			—		530
Ivy Energy Fund		105		—	*		3			10			—		113
Ivy Global Natural Resources Fund		143		1			5			1			—		145
Ivy LaSalle Global Real Estate Fund		13		—			—	*		—	*		N/A		13
Ivy LaSalle Global Risk-Managed Real Estate Fund		59		—			—	*		—	*		N/A		75
Ivy Real Estate Securities Fund		164		—	*		4			1			—		158
Ivy Science and Technology Fund		317		6			43			60			—		359

* Not shown due to rounding.

(1) IDI reallowed/paid this portion of the sales charge to financial advisors and selling broker-dealers.

2016 SEMIANNUAL REPORT 75

Expense Reimbursements and/or Waivers. Fund and class expense limitations and related waivers/reimbursements for the period ended September 30, 2016 were as follows:

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Asset Strategy Fund	Class E	Contractual	8-1-2008	7-31-2017	1.00%		$	56		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Balanced Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Energy Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Global Natural Resources Fund	Class E	Contractual	8-1-2008	7-31-2017	1.27%		$	24		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy LaSalle Global Real Estate Fund	Class A	Contractual	4-1-2013	7-31-2017	1.51%		$	67		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	4-1-2013	7-31-2017	Not to exceed Class A		$	2		12b-1 Fees and/or Shareholder Servicing
Ivy LaSalle Global Risk-Managed Real Estate Fund	Class A	Contractual	4-1-2013	7-31-2017	1.51%		$	40		12b-1 Fees and/or Shareholder Servicing Shareholder Servicing
	Class I	Contractual	4-1-2016	7-31-2017	1.16%		$	4
	Class Y	Contractual	4-1-2013	7-31-2017	Not to exceed Class A		$	1		12b-1 Fees and/or Shareholder Servicing
Ivy Real Estate Securities Fund	All Classes	Contractual	12-3-2012	7-31-2017	N/A		$	359	(1)	Investment Management Fee
	Class E	Contractual	8-1-2008	7-31-2017	1.45%		$	5		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	–		N/A
Ivy Science and Technology Fund	Class E	Contractual	8-1-2008	7-31-2017	1.30%(2)		$	25		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	–		N/A

(1) The Fund’s investment management fee is being reduced by 0.10% of average daily net assets until July 31, 2017.

(2) Reflects the lower contractual expense limit which went into effect August 1, 2016.

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2016 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

8. INTERFUND LENDING PROGRAM

Pursuant to an exemptive order issued by the SEC (“Order”), the Trust and the Advisors Fund Complex (Waddell & Reed Advisors Funds, Ivy Funds Variable Insurance Portfolios and InvestEd Portfolios; referred to with the Funds for purposes of this section as Funds) have the ability to lend money to, and borrow money from, each other pursuant to a master interfund lending agreement (“Interfund Lending Program”). Under the Interfund Lending Program, the Funds may lend or borrow money for temporary purposes directly to or from one another (each an “Interfund Loan”), subject to meeting the conditions of the Order. The interest rate to be charged on an Interfund Loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The Funds made no Interfund Loans under the Interfund Lending Program during the period ended September 30, 2016.

76 SEMIANNUAL REPORT 2016

9. AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands)

A summary of the transactions in affiliated companies during the period ended September 30, 2016 follows:

	3-31-16 Share Balance		Purchases at cost		Sales at Cost		Realized Gain/(Loss)		Distributions Received		9-30-16 Share Balance		9-30-16 Value
Ivy Asset Strategy Fund
Media Group Holdings LLC, Series H(1)		640	$	—	$	—	$	—	$	—		640	$	7,580
Media Group Holdings LLC, Series I(1)		381		—		—		—		—		381		61,505
Media Group Holdings LLC, Series T(1)		80		—		—		—		—		80		67,596
							$	—	$	—			$	136,681

	3-31-16 Share Balance		Purchases at cost		Sales at Cost		Realized Gain/ (Loss)			Distributions Received		9-30-16 Share Balance		9-30-16 Value
Ivy Science and Technology Fund
ACI Worldwide, Inc.(1)		8,611	$	—	$	11,767	$	(2,115	)	$	—		8,116	$	157,297
Acxiom Corp. (1)		6,256		—		48,921		(6,775	)		—		4,483		119,465
Arcadia Biosciences, Inc.(1)		3,161		—		273		(205	)		—		3,127		6,004
Aspen Technology, Inc.(1)		5,192		—		36,639		15,785			—		4,019		188,031
Avinger, Inc.(1)		1,363		7,392		1,076		(538	)		—		3,395		16,193
BioAmber, Inc(1).		4,883		—		2,066		(1,453	)		—		4,711		19,973
BioAmber, Inc, Warrants.		1,276		—		—		—			—		1,276		587
Euronet Worldwide, Inc.(1)(2)		3,271		—		43,988		31,126			—		N/A		N/A
Evogene Ltd.(1)		1,852		—		—		—			—		1,852		11,815
Marrone Bio Innovations, Inc.(1)		2,608		—		—		—			—		2,608		4,485
Marrone Bio Innovations, Inc, Warrants.		2,390		—		—		—			—		2,390		—
Nanometrics, Inc.(1)		1,438		—		3,487		(131	)		—		1,254		28,016
Photronics, Inc(1)		4,528		—		—		—			—		4,528		46,687
Rambus, Inc.(1)		6,607		—		1,968		(20	)		—		6,452		80,649
Semtech Corp.(1)		3,890		—		14,746		(1,311	)		—		3,356		93,051
Silver Spring Networks, Inc.(1)		4,810		—		—		—			—		4,810		68,202
WNS (Holdings) Ltd. ADR(1)		6,346		—		11,716		1,580			—		5,887		176,302
							$	35,943		$	—			$	1,016,757
	3-31-16 Principal Balance									Interest Received		9-30-16 Principal Balance
Marrone Bio Innovations, Inc., 8.000%, 8-20-20	$	23,900	$	—	$	—	$	—		$	948	$	23,900	$	24,373

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

(2) No longer affiliated as of September 30, 2016.

2016 SEMIANNUAL REPORT 77

10. INVESTMENT SECURITIES TRANSACTIONS ($ amounts in thousands)

The cost of purchases and the proceeds from maturities and sales of investment securities (excluding short-term securities) for the period ended September 30, 2016, were as follows:

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Asset Strategy Fund	$	51,391	$	1,431,103	$	1,008,267	$	2,152,898
Ivy Balanced Fund		81,651		534,081		18,675		521,132
Ivy Energy Fund		—		109,419		—		94,949
Ivy Global Natural Resources Fund		—		299,250		—		387,538
Ivy LaSalle Global Real Estate Fund		—		8,009		—		7,270
Ivy LaSalle Global Risk-Managed Real Estate Fund		—		62,246		—		29,307
Ivy Real Estate Securities Fund		—		208,117		—		220,852
Ivy Science and Technology Fund		—		189,992		—		1,478,210

11. CAPITAL SHARE TRANSACTIONS (All amounts in thousands)

The Trust has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class of each Fund. Transactions in shares of beneficial interest were as follows:

	Ivy Asset Strategy Fund												Ivy Balanced Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		3,989		$	83,911			22,948		$	551,405			6,765		$	158,075			21,298		$	513,404
Class B		25			502			267			5,877			574			13,266			1,129			26,117
Class C		1,065			21,404			13,159			299,265			5,003			116,038			15,378			363,828
Class E		108			2,297			314			7,601			—			—			—			—
Class I		21,740			458,333			38,032			921,901			22,777			526,929			7,443			177,748
Class R		361			7,527			1,279			30,102			61			1,425			367			9,060
Class R6		522			11,121			3,915			101,824			211			4,931			162			3,872
Class Y		668			14,101			5,868			142,021			786			18,402			2,019			48,921
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			10,548			235,013			164			3,856			2,921			69,248
Class B		—			—			968			20,489			2			47			130			3,055
Class C		—			—			12,107			257,989			26			610			1,444			34,019
Class E		—			—			162			3,631			—	*		1			—	*		11
Class I		—			—			10,105			227,453			101			2,397			663			15,716
Class R		—			—			283			6,259			1			27			26			611
Class R6		—			—			214			4,824			2			52			10			230
Class Y		—			—			1,687			37,676			16			384			286			6,787
Shares redeemed:
Class A		(67,041	)		(1,407,762	)		(126,737	)		(2,961,582	)		(28,485	)		(660,827	)		(14,265	)		(342,248	)
Class B		(4,881	)		(97,294	)		(9,780	)		(213,453	)		(491	)		(11,455	)		(662	)		(15,714	)
Class C		(71,791	)		(1,441,262	)		(148,185	)		(3,251,127	)		(7,250	)		(169,381	)		(6,624	)		(157,888	)
Class E		(518	)		(10,987	)		(729	)		(17,115	)		—			—			—			—
Class I		(68,698	)		(1,463,968	)		(283,465	)		(6,589,289	)		(7,327	)		(172,739	)		(4,176	)		(100,151	)
Class R		(1,658	)		(34,606	)		(2,657	)		(61,416	)		(101	)		(2,400	)		(161	)		(3,852	)
Class R6		(237	)		(5,096	)		(4,032	)		(88,444	)		(52	)		(1,232	)		(96	)		(2,431	)
Class Y		(9,117	)		(192,571	)		(26,758	)		(622,635	)		(1,992	)		(46,970	)		(4,095	)		(98,653	)
Net increase (decrease)		(195,463	)	$	(4,054,350	)		(480,487	)	$	(10,951,731	)		(9,209	)	$	(218,564	)		23,197		$	551,690

* Not shown due to rounding.

78 SEMIANNUAL REPORT 2016

	Ivy Energy Fund												Ivy Global Natural Resources Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		3,145		$	37,677			10,111		$	120,043			1,338		$	17,962			5,731		$	76,137
Class B		45			504			111			1,212			15			164			23			268
Class C		787			8,898			3,899			44,748			223			2,536			843			9,631
Class E		—			—			—			—			27			375			65			902
Class I		6,096			76,287			6,815			82,314			7,135			99,514			2,891			42,195
Class R		407			4,884			902			10,514			268			3,591			574			7,745
Class R6		435			5,464			359			4,569			65			923			727			9,654
Class Y		1,194			14,279			3,225			38,975			223			3,093			584			8,054
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			—			—			—			—			—			—
Class B		—			—			—			—			—			—			—			—
Class C		—			—			—			—			—			—			—			—
Class E		—			—			—			—			—			—			—			—
Class I		—			—			—			—			—			—			—			—
Class R		—			—			—			—			—			—			—			—
Class R6		—			—			—			—			—			—			—			—
Class Y		—			—			—			—			—			—			—			—
Shares redeemed:
Class A		(6,600	)		(79,558	)		(7,435	)		(86,675	)		(10,024	)		(134,486	)		(12,644	)		(175,626	)
Class B		(60	)		(669	)		(139	)		(1,500	)		(180	)		(2,069	)		(634	)		(7,813	)
Class C		(1,008	)		(11,430	)		(2,226	)		(23,954	)		(1,300	)		(14,805	)		(4,062	)		(47,940	)
Class E		—			—			—			—			(42	)		(585	)		(83	)		(1,162	)
Class I		(2,270	)		(28,625	)		(4,821	)		(57,789	)		(2,288	)		(32,358	)		(5,427	)		(76,283	)
Class R		(264	)		(3,231	)		(219	)		(2,586	)		(359	)		(4,798	)		(679	)		(9,485	)
Class R6		(171	)		(2,169	)		(93	)		(1,145	)		(213	)		(3,045	)		(143	)		(1,959	)
Class Y		(1,405	)		(17,330	)		(2,019	)		(23,172	)		(381	)		(5,311	)		(1,641	)		(23,133	)
Net increase (decrease)		331		$	4,981			8,470		$	105,554			(5,493	)	$	(69,299	)		(13,875	)	$	(188,815	)

2016 SEMIANNUAL REPORT 79

	Ivy LaSalle Global Real Estate Fund												Ivy LaSalle Global Risk-Managed Real Estate Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		273		$	2,901			1,129		$	11,908			3,481		$	39,730			3,245		$	34,844
Class B		2			23			4			38			25			282			22			245
Class C		23			250			21			218			419			4,833			71			754
Class I		1,849			18,915			32			342			5,077			56,764			86			918
Class R		1			8			1			15			17			202			1			10
Class Y		4			51			29			304			478			5,537			79			866
Shares issued in reinvestment of distributions to shareholders:
Class A		40			412			93			934			143			1,585			83			868
Class B		—	*		1			—	*		1			1			9			—	*		1
Class C		1			6			1			8			5			59			1			16
Class I		2			18			2			21			7			83			2			21
Class R		—			—			—			—			—			—			—			—
Class Y		1			1			1			8			1			10			2			17
Shares redeemed:
Class A		(1,853	)		(18,913	)		(1,059	)		(10,931	)		(4,922	)		(54,918	)		(1,412	)		(14,960	)
Class B		(1	)		(11	)		(2	)		(18	)		(3	)		(30	)		(71	)		(738	)
Class C		(13	)		(136	)		(20	)		(204	)		(26	)		(300	)		(25	)		(268	)
Class I		(187	)		(2,013	)		(25	)		(262	)		(1,194	)		(13,902	)		(86	)		(892	)
Class R		—	*		(1	)		—	*		(3	)		—	*		—	*		(1	)		(6	)
Class Y		(17	)		(178	)		(40	)		(424	)		(414	)		(4,795	)		(132	)		(1,445	)
Net increase		125		$	1,334			167		$	1,955			3,095		$	35,149			1,865		$	20,251

* Not shown due to rounding.

80 SEMIANNUAL REPORT 2016

	Ivy Real Estate Securities Fund												Ivy Science and Technology Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,441		$	42,122			3,890		$	106,596			2,110		$	99,536			11,585		$	601,356
Class B		19			557			7			189			39			1,584			183			7,964
Class C		113			3,300			132			3,567			591			24,516			4,753			221,674
Class E		26			781			21			561			38			1,834			105			5,343
Class I		7,779			226,781			328			9,121			7,081			352,910			11,473			652,285
Class R		22			665			40			1,080			240			11,154			1,017			51,832
Class R6		15			449			22			603			517			26,547			1,177			63,617
Class Y		415			12,364			532			14,790			1,150			57,339			4,242			230,423
Shares issued in reinvestment of distributions to shareholders:
Class A		84			2,441			1,064			28,062			—			—			939			47,673
Class B		—	*		10			9			220			—			—			35			1,501
Class C		2			54			32			839			—			—			486			21,684
Class E		1			21			7			187			—			—			11			548
Class I		21			597			26			678			—			—			599			33,085
Class R		—	*		6			3			82			—			—			55			2,728
Class R6		1			25			7			193			—			—			18			990
Class Y		34			979			333			8,788			—			—			358			19,079
Shares redeemed:
Class A		(8,959	)		(258,950	)		(5,701	)		(155,961	)		(16,534	)		(775,736	)		(13,172	)		(661,718	)
Class B		(34	)		(977	)		(72	)		(1,880	)		(224	)		(9,002	)		(331	)		(14,108	)
Class C		(100	)		(2,898	)		(237	)		(6,374	)		(4,141	)		(172,880	)		(4,902	)		(214,346	)
Class E		(11	)		(330	)		(23	)		(619	)		(48	)		(2,270	)		(55	)		(2,681	)
Class I		(811	)		(24,512	)		(339	)		(9,232	)		(11,703	)		(610,204	)		(15,913	)		(844,167	)
Class R		(8	)		(247	)		(48	)		(1,291	)		(573	)		(26,781	)		(729	)		(36,266	)
Class R6		(15	)		(451	)		(43	)		(1,190	)		(230	)		(12,021	)		(120	)		(6,317	)
Class Y		(376	)		(11,030	)		(1,662	)		(45,474	)		(3,378	)		(169,118	)		(6,672	)		(351,670	)
Net decrease		(341	)	$	(8,243	)		(1,672	)	$	(46,465	)		(25,065	)	$	(1,202,592	)		(4,858	)	$	(169,491	)

* Not shown due to rounding.

12. FEDERAL INCOME TAX MATTERS ($ amounts in thousands)

For Federal income tax purposes, cost of investments owned at September 30, 2016 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Asset Strategy Fund	$	6,701,458	$	546,415	$	930,223	$	(383,808	)
Ivy Balanced Fund		2,494,608		290,421		68,778		221,643
Ivy Energy Fund		455,085		91,500		13,338		78,162
Ivy Global Natural Resources Fund		710,177		109,224		80,159		29,065
Ivy LaSalle Global Real Estate Fund		33,655		3,256		1,465		1,791
Ivy LaSalle Global Risk-Managed Real Estate Fund		115,836		8,316		1,429		6,887
Ivy Real Estate Securities Fund		513,658		204,873		2,875		201,998
Ivy Science and Technology Fund		2,844,043		1,617,139		275,558		1,341,581

2016 SEMIANNUAL REPORT 81

For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2016 and the post-October and late-year ordinary activity were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Tax Return of Capital		Post- October Capital Losses Deferred		Late-Year Ordinary Losses Deferred
Ivy Asset Strategy Fund	$	—	$	—	$	—	$	281,518	$	12,091
Ivy Balanced Fund		—		372		—		33,162		696
Ivy Energy Fund		—		—		—		—		1,202
Ivy Global Natural Resources Fund		1,433		—		—		—		—
Ivy LaSalle Global Real Estate Fund		492		—		—		512		—
Ivy LaSalle Global Risk-Managed Real Estate Fund		2,328		284		—		—		—
Ivy Real Estate Securities Fund		2,633		12,141		—		—		—
Ivy Science and Technology Fund		—		—		—		128,973		8,511

Internal Revenue Code regulations permit each Fund to elect to defer into its next fiscal year capital losses and certain specified ordinary items incurred between each November 1 and the end of its fiscal year. Each Fund is also permitted to defer into its next fiscal certain ordinary losses that generated between each January 1 and the end of its fiscal year.

The tax character of dividends and distributions paid during the two fiscal years ended March 31, 2016 and 2015 were as follows:

	March 31, 2016				March 31, 2015
Fund	Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains		Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains
Ivy Asset Strategy Fund	$	37,222	$	959,717	$	112,911	$	4,634,585
Ivy Balanced Fund		48,087		100,678		17,735		57,005
Ivy Energy Fund		—		—		—		—
Ivy Global Natural Resources Fund		—		—		—		—
Ivy LaSalle Global Real Estate Fund		711		368		642		132
Ivy LaSalle Global Risk-Managed Real Estate Fund		912		528		1,265		—
Ivy Real Estate Securities Fund		10,986		28,841		13,669		12,139
Ivy Science and Technology Fund		—		144,996		—		124,817

Dividends from net investment income and short-term capital gains are treated as ordinary income dividends for federal income tax purposes.

Accumulated capital losses represent net capital loss carryovers as of March 31, 2016 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), a Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years which have only an eight year carryforward period. As a result of this ordering rule, pre-enactment capital loss carryovers may expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under the previous law. The Fund’s first fiscal year end subject to the Modernization Act was March 31, 2012. The following table shows the expiration dates for capital loss carryovers from pre-enactment taxable years and the amounts of capital loss carryovers, if any, by each of the applicable Funds electing to be taxed as a regulated investment company during the year ended March 31, 2016:

	Pre-Enactment				Post-Enactment
Fund	2017		2018		Short-Term Capital Loss Carryover		Long-Term Capital Loss Carryover
Ivy Asset Strategy Fund	$	—	$	—	$	4,076	$	—
Ivy Balanced Fund		—		—		—		—
Ivy Energy Fund		—		6,022		36,821		27,087
Ivy Global Natural Resources Fund		—		1,529,206		277,990		373,570
Ivy LaSalle Global Real Estate Fund		—		—		—		—
Ivy LaSalle Global Risk-Managed Real Estate Fund		—		—		—		—
Ivy Real Estate Securities Fund		—		—		—		—
Ivy Science and Technology Fund		—		—		—		—

82 SEMIANNUAL REPORT 2016

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENTS IVY FUNDS

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 8^th and 9^th, 2016, the Board, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), unanimously approved the continuance of the Investment Management Agreement (the “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 and Ivy Real Estate Securities Fund);

• Mackenzie Financial Corporation (with respect to Ivy Cundill Global Value Fund);

• LaSalle Investment Management Securities, LLC and LaSalle Investment Management Securities B.V. (with respect to Ivy Global Real Estate Fund and Ivy Global Risk-Managed Real Estate Fund); and

• Pictet Asset Management Limited and Pictet Asset Management (Singapore) Pte Ltd. (with respect to the Ivy Emerging Markets Local Currency Debt 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 explained the factors that the Board should consider as part of its review of the various agreements, all as outlined in a memorandum it had provided to the Board prior to the meeting, 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 Independent Trustees also considered the written responses and materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees’ legal counsel prior to the meeting, as well as materials produced in response to a follow-up request list sent to IICO by independent legal counsel on behalf of the Independent Trustees. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO, as well as an 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 Broadridge, Inc. (“Broadridge”) 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 and discussed these materials during a telephonic meeting in July 2016. They further reviewed these materials extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members at an executive session of the Independent Trustees at the August 9, 2016 Board meeting, during which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board’s determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to 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 requests submitted on its behalf by independent legal counsel.

The Board likewise considered the knowledge it had received from its regular meetings, 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 policies and procedures and with applicable laws and regulations). The Board also took into account the compliance environment at IICO and each Subadviser, noting the resources that IICO has dedicated towards compliance. 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 Funds

The Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. In that regard, the Board discussed the transfer agency/shareholder servicing fees that Waddell & Reed Services Company provides the Funds. The Board took note of the caps that management previously had agreed to on shareholder servicing costs. The Board also considered the benefits that accrue to each service provider organization from its respective relationship with the Funds, including the fact that a variety of services are provided by affiliates of IICO, including distribution, administrative and Fund accounting services, and, as discussed above, shareholder servicing. After full

2016 SEMIANNUAL REPORT 83

consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receives any additional direct or indirect benefits that would preclude the Board from approving the continuation of the Management Agreement with IICO or any Investment Subadvisory 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. The Board considered the fact that as a Fund’s assets have grown, the expenses of that Fund generally have fallen, although the Board took into account that the overall assets of the Funds have fallen during the prior year.

Performance of the Funds and Costs of Services Provided

The Board considered the performance of each Fund and the costs of the services provided, focusing on a number of Funds that the independent fee consultant had identified. Specifically, the Board examined the investment performance of each Fund, including the percentile ranking of each Fund over various periods of time. 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 and 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 other 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 those other 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 Funds’ expense ratios, noting that, as the Funds’ assets have increased or decreased over time, the expense ratios of the Funds generally have fallen or risen, respectively. After completing this examination, the Board concluded that each Fund’s expenses are appropriate at the current time.

Independent Fee Consultant Review

During July of 2016, and as part of their regularly scheduled meetings, the Independent Trustees reviewed a substantial amount of information in connection with considering the continuation of the Management Agreement currently in effect between IICO and the Funds. Independent legal counsel, on behalf of the Independent Trustees, engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO to the Funds. The independent fee consultant’s review addressed the following fee-related factors:

1. The nature, extent and quality of IICO’s services to the 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 agreement, and profit margins of IICO and its affiliates from supplying such services; and

5. Possible economies of scale as a Fund grows larger.

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

Summary Findings

The report stated that IICO delivered reasonable levels of performance in the longer-term periods and reasonable levels of service to the Funds in relation to its management fees as compared to the investment advisers of comparable funds. For

¹  The independent fee consultant’s evaluation was based on information provided by IICO, Broadridge, 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 a Fund to IICO, as a percentage of average net assets. The term “total expenses” refers to the total annual expenses, net of any fee waivers, paid by a Fund, as a percentage of average net assets. Where these terms are used in reference to groups of 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, 2016. Broadridge report data reflects Class A shares.

84 SEMIANNUAL REPORT 2016

the 36 months ended March 31, 2016, approximately 10% of the Funds were in the top quartile of performance and 40% of the Funds were in the top two quartiles of performance, although short-term performance of the Funds had declined after an extended period of superior long-term performance, which bears monitoring. The independent fee consultant noted that the Funds’ performance appeared to be grounded in a number of institutional competitive advantages at IICO including economic analysis, investment management depth, ability to attract top talent, strategic vision, performance-focused culture, and an effective trading infrastructure, and that these factors could allow IICO to overcome recent short-term performance challenges.

The report further indicated that total expenses of the Funds, on average, were 4% below the average total expenses of their respective Broadridge Expense Group peers and 15% below the average total expenses for their Broadridge Expense Universes. The management fees for the Funds were 6% below the average management fees of their respective Broadridge Expense Group peers and 10% below the average management fees for their Broadridge Expense Universes. The independent fee consultant noted that the Funds, generally small account size relative to the Expense Groups introduces certain biases in the Broadridge analyses that work against the Funds in Broadridge expense comparisons and, as a result, the Broadridge findings may be considered conservative. The independent fee consultant found that within the larger Broadridge averages, the management fees and total expenses of individual Funds and share classes are reasonable relative to their performance.

The report also stated that the management fees IICO charges to the Funds are reasonable in relation to the management fees it charges to its institutional account clients. The report noted that these institutional account clients have different service and infrastructure needs and in addition, the average spread between management fees IICO charged to the Funds and those it charges to institutional account clients is reasonable relative to the average fee spreads computed from industry surveys.

The report stated that while it was difficult to confirm overall economies of scale, it was clear that the Funds’ shareholders generally are benefitting from lower expenses as the Funds’ assets grow.

The report also noted that IICO’s overall profitability from managing the Funds and its other operations is near the median of most similarly-sized, publicly-traded peers, but appears adequate to enable IICO to continue to provide quality support to the Funds and their shareholders. Finally, the report noted that IICO has continued to invest in AUM growth, which is designed to help drive down fund expenses and attract top investment management talent, both of which can benefit the Funds’ investors.

Finally, the report also examined the fees that IICO retains on Funds that are subadvised by unaffiliated subadvisers, and indicated that those fees are reasonable relative to the industry. The report also stated that the subadvisory fees that IICO earns for serving as a subadviser to an unaffiliated fund when compared to fees of similar Funds likewise are reasonable relative to the industry.

Conclusions

The independent fee consultant’s report concluded that it believes that the services provided by IICO and its affiliates and expenses incurred by the Funds in the previous 12 months are reasonable and provide adequate justification for renewal of the Funds’ existing Management Agreement and Investment Subadvisory Agreements.

Approvals for Ivy California Municipal High Income Fund

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 9, 2016, the trustees, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), considered and approved an amendment to the Investment Management Agreement (the “Management Agreement”) between Ivy Investment Management Company (“IICO”) and the Trust, on behalf of Ivy California Municipal High Income Fund (the “Fund”), to include the Fund under the Management Agreement. The Fund is a newly created series of the Trust.

The Independent Trustees were assisted in their consideration of the Management Agreement by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel had provided the Board with a memorandum prior to the meeting that discussed the various factors that the Board should consider as part of its review of the Management Agreement, including, among other things, the nature and quality of the services proposed to be provided to the Fund by IICO, IICO’s potential profitability (including any fall-out benefits) from its proposed relationship with the Fund, projected economies of scale, the role played by the Independent Trustees and information on comparative fees and expenses. The material factors and conclusions that formed the basis for the Board’s determination to approve the Management Agreement are discussed below.

In considering the Management Agreement, the Board noted that although the Fund had not yet commenced operations, the Fund appeared to be designed to be able to achieve acceptable performance. The Board also considered the proposed expenses of the Fund, the cost of the services proposed to be provided by IICO, including as compared to the other Funds in

2016 SEMIANNUAL REPORT 85

the Trust family and comparable funds. The Board also noted the proposed expense cap agreement, and concluded that the proposed expenses of the Fund were acceptable. The Board did not discuss possible economies of scale because the Fund had not yet commenced operations. The Board noted that it would monitor profitability once the Fund began operations. The Board considered the nature, extent and quality of services proposed to be provided to the Fund by IICO, taking into account the investment objectives and strategies of the Fund, the Board’s experience with IICO, and other materials previously provided to the Board on the Fund. In addition, the Board reviewed the resources and key personnel of IICO. The Board also considered other services proposed to be provided to the Fund by IICO based upon its current experiences with IICO, such as IICO’s ability to monitor adherence to the Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees on Fund matters, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures and with applicable laws and regulations. The Board also took into account IICO’s compliance environment. The Board concluded that the nature and extent of services to be provided by IICO are reasonable, considering the quality of the services currently provided by IICO for other Funds of the Trust. The Board also discussed whether IICO would derive any other direct or indirect benefits from serving as investment adviser to the Fund. The Board considered the benefits that would accrue to IICO from its relationship with the Fund, including the fact that a variety of services for the Fund were proposed to be provided by affiliates of IICO, including distribution, shareholder servicing and transfer agency services. After consideration of these and other factors, the Board concluded that neither IICO nor any of its affiliates would receive any additional direct benefits that would preclude the Board from approving the Management Agreement for the Fund.

86 SEMIANNUAL REPORT 2016

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 Investments’ website at www.ivyinvestments.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.ivyinvestments.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.

2016 SEMIANNUAL REPORT 87

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88 SEMIANNUAL REPORT 2016

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2016 SEMIANNUAL REPORT 89

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90 SEMIANNUAL REPORT 2016

THE IVY FUNDS FAMILY

Domestic Equity Funds

Ivy Core Equity Fund

Ivy Dividend Opportunities Fund

Ivy Large Cap Growth Fund

Ivy Micro Cap Growth Fund

Ivy Mid Cap Growth Fund

Ivy Mid Cap Income Opportunities 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 Emerging Markets Equity Fund

Ivy Emerging Markets Local Currency Debt Fund

Ivy European Opportunities Fund

Ivy Global Equity Income Fund

Ivy Global Growth Fund

Ivy Global Income Allocation Fund

Ivy International Core Equity Fund

Ivy Managed International Opportunities Fund

Speciality Funds

Ivy Apollo Multi-Asset Income Fund

Ivy Asset Strategy Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Global Natural Resources Fund

Ivy LaSalle Global Real Estate Fund

Ivy LaSalle Global Risk-Managed Real Estate Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

Fixed Income Funds

Ivy Apollo Strategic Income Fund

Ivy Bond Fund

Ivy Global Bond Fund

Ivy High Income Fund

Ivy Limited-Term Bond Fund

Ivy Money Market Fund

Ivy Municipal Bond Fund

Ivy Municipal High Income Fund

Ivy Targeted Return Bond Fund

1.800.777.6472

Visit us online at www.ivyinvestments.com

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

Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a mutual fund. This and other important information is contained in the prospectus and summary prospectus, which may be obtained at www.ivyinvestments.com or from a financial advisor. Read it carefully before investing.

2016 SEMIANNUAL REPORT 91

SEMIANN-IVYSPEC (9-16)

  Semiannual Report   SEPTEMBER 30, 2016

Ticker

Class A

Class B

Class C

Class E

Class I

Class R

Class R6

Class Y

IVY FUNDS

Ivy Bond Fund

IBOAX

IBOBX

IBOCX

IVBEX

IVBIX

IYBDX

IBNDX

IBOYX

Ivy Core Equity Fund

WCEAX

WCEBX

WTRCX

ICFEX

ICIEX

IYCEX

ICEQX

WCEYX

Ivy Cundill Global Value Fund

ICDAX

ICDBX

ICDCX

ICVEX

ICVIX

IYCUX

ICNGX

ICDYX

Ivy Dividend Opportunities Fund

IVDAX

IVDBX

IVDCX

IDIEX

IVDIX

IYDVX

IDOTX

IVDYX

Ivy Emerging Markets Equity Fund

IPOAX

IPOBX

IPOCX

IPOEX

IPOIX

IYPCX

IMEGX

IPOYX

Ivy European Opportunities Fund

IEOAX

IEOBX

IEOCX

IVEOX

IEOIX

IYEUX

IEURX

IEOYX

Ivy Global Bond Fund

IVSAX

IVSBX

IVSCX

IVSIX

IYGOX

IVBDX

IVSYX

Ivy Global Equity Income Fund

IBIAX

IBIBX

IBICX

IBIIX

IYGEX

IICNX

IBIYX

Ivy Global Growth Fund

IVINX

IVIBX

IVNCX

IIGEX

IGIIX

IYIGX

ITGRX

IVIYX

Ivy Global Income Allocation Fund

IVBAX

IVBBX

IVBCX

IIBEX

IIBIX

IYGBX

ILIAX

IVBYX

Ivy High Income Fund

WHIAX

WHIBX

WRHIX

IVHEX

IVHIX

IYHIX

IHIFX

WHIYX

Ivy International Core Equity Fund

IVIAX

IIFBX

IVIFX

IICEX

ICEIX

IYITX

IINCX

IVVYX

Ivy Large Cap Growth Fund

WLGAX

WLGBX

WLGCX

ILCEX

IYGIX

WLGRX

ILGRX

WLGYX

Ivy Limited-Term Bond Fund

WLTAX

WLTBX

WLBCX

IVLEX

ILTIX

IYLTX

ILMDX

WLTYX

Ivy Managed International Opportunities Fund

IVTAX

IVTBX

IVTCX

IVTEX

IVTIX

IYMGX

IVTYX

Ivy Micro Cap Growth Fund

IGWAX

IGWBX

IGWCX

IGWIX

IYMRX

IMIGX

IGWYX

Ivy Mid Cap Growth Fund

WMGAX

WMGBX

WMGCX

IMCEX

IYMIX

WMGRX

IGRFX

WMGYX

Ivy Mid Cap Income Opportunities Fund

IVOAX

IVOCX

IVOEX

IVOIX

IVORX

IVOSX

IVOYX

Ivy Money Market Fund

WRAXX

WRBXX

WRCXX

IVEXX

Ivy Municipal Bond Fund

WMBAX

WMBBX

WMBCX

IMBIX

WMBYX

Ivy Municipal High Income Fund

IYIAX

IYIBX

IYICX

WYMHX

IYIYX

Ivy Small Cap Growth Fund

WSGAX

WSGBX

WRGCX

ISGEX

IYSIX

WSGRX

IRGFX

WSCYX

Ivy Small Cap Value Fund

IYSAX

IYSBX

IYSCX

IYVIX

IVVIX

IYSMX

ISPVX

IYSYX

Ivy Tax-Managed Equity Fund

IYEAX

IYEBX

IYECX

WYTMX

IYEYX

Ivy Value Fund

IYVAX

IYVBX

IYVCX

IVVEX

IYAIX

IYVLX

IVALX

IYVYX

IVY INVESTMENTS^SM refers to the financial services offered by Ivy Distributors, Inc., a FINRA member broker dealer and the distributor of IVY FUNDS^® mutual funds, and those financial services offered by its affiliates.

CONTENTS IVY FUNDS

President’s Letter	3
Illustration of Fund Expenses	4
Portfolio Highlights and Schedule of Investments:
Ivy Bond Fund	11
Ivy Core Equity Fund	19
Ivy Cundill Global Value Fund	22
Ivy Dividend Opportunities Fund	25
Ivy Emerging Markets Equity Fund	28
Ivy European Opportunities Fund	32
Ivy Global Bond Fund	36
Ivy Global Equity Income Fund	42
Ivy Global Growth Fund	46
Ivy Global Income Allocation Fund	50
Ivy High Income Fund	57
Ivy International Core Equity Fund	65
Ivy Large Cap Growth Fund	69
Ivy Limited-Term Bond Fund	72
Ivy Managed International Opportunities Fund	78
Ivy Micro Cap Growth Fund	80
Ivy Mid Cap Growth Fund	83
Ivy Mid Cap Income Opportunities Fund	87
Ivy Money Market Fund	90
Ivy Municipal Bond Fund	93
Ivy Municipal High Income Fund	101
Ivy Small Cap Growth Fund	110
Ivy Small Cap Value Fund	113
Ivy Tax-Managed Equity Fund	116
Ivy Value Fund	119
Statements of Assets and Liabilities	122
Statements of Operations	126
Statements of Changes in Net Assets	130
Financial Highlights	140
Notes to Financial Statements	190
Renewal of Investment Management Agreements	227
Proxy Voting Information	231
Quarterly Portfolio Schedule Information	231
IRA Disclosure	231

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.

2

PRESIDENT’S LETTER IVY FUNDS

	SEPTEMBER 30, 2016 (UNAUDITED)
Philip J. Sanders, CFA

Dear Shareholder,

Over the six months since our last report to you, the financial markets held fairly steady, despite intermittent bouts of volatility. The S&P 500 Index rebounded from turbulence created by the United Kingdom’s vote in June to leave the European Union and, in July, reached a record high, though it has dropped slightly since then.

Concerns about global economic growth, the direction of interest rates, fluctuation in oil prices and the outcome of the U.S. presidential election are all contributors to concerns about the direction of markets as we look toward the end of 2016.

While financial markets dislike the uncertainty brought on by the above issues, domestic equities have performed fairly well, and we expect moderate positive returns for 2016.

Across the six-month fiscal period, the gradual U.S. economic expansion has continued. The U.S. remains a relative bright spot in the world, supported primarily by the U.S. consumer, who is benefitting from lower energy prices, lower inflation in general and an improved labor market. Demand for cars, homes and furnishings has been healthy.

When interest rates in the U.S. will rise, and by how much, remains an area of focus, with many anticipating the Federal Reserve will raise rates in December of this year. Over the last 12 months, global economic concerns have altered the Fed’s timetable on further increases. We believe that job growth and inflation will be the most important determinants in the direction of long-term central bank policy.

Overseas, the European Central Bank and Bank of Japan are actively engaged in aggressive easing. As yet, these steps are not leading to any notable strengthening of economic activity.

China, in the face of economic softening, has turned toward more aggressive stimulus. We believe economic growth in China is likely to hold steady, which should support broader global growth.

While challenges remain, we do see potential catalysts for growth in several areas and industries and our team continues to seek investment opportunities around the globe.

Economic Snapshot

	9/30/16		3/31/16
S&P 500 Index		2,168.27		2,059.74
MSCI EAFE Index		1,701.69		1,652.04
10-Year Treasury Yield		1.60%		1.78%
U.S. unemployment rate		5.0%		5.0%
30-year fixed mortgage rate		3.42%		3.71%
Oil price per barrel	$	48.24	$	38.34

Sources: Bloomberg, U.S. Department of Labor, MBA, CME

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. It is not possible to invest directly in any of these indexes. Mortgage rates are from BankRate and reflect the overnight national average rate on a conventional 30-year fixed loan. Oil prices reflect the market price of West Texas intermediate grade crude.

Respectfully,

Philip J. Sanders, CFA

President

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

2016 SEMIANNUAL REPORT 3

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, exchange fees and account fees; and (2) ongoing costs, including management fees, distribution and service fees, and other Fund expenses. The following table 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. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six-month period ended September 30, 2016.

Actual Expenses

The first section in the following table provides information about actual account values and actual expenses for each share class. You may use the information in this section, 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 section 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 table. Fees apply to Individual Retirement Accounts (IRAs), IRA Rollovers, Roth IRAs, Conversion Roth IRAs, Simplified Employee Pension (SEP), Savings Incentive Match Plan for Employees (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 table, a customer is charged an annual fee of $18 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. With limited exceptions, for Class A and Class C shares, if your Fund

account balance is below $650 on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20. 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 following table. Additional fees have the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

The second section in the following table provides information about hypothetical account values and hypothetical expenses for each share class 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 table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), exchange fees or account fees. Therefore, the second section in the table 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.

Expenses paid may be impacted by expense reduction arrangements. If those arrangements had not been in place, expenses paid would have been higher. See Note 7 to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy Bond Fund
Class A	$	1,000	$	1,042.80	$	5.31	$	1,000	$	1,019.85	$	5.25		1.04%
Class B**	$	1,000	$	1,037.60	$	10.49	$	1,000	$	1,014.80	$	10.38		2.05%
Class C	$	1,000	$	1,039.10	$	8.97	$	1,000	$	1,016.22	$	8.87		1.77%
Class E	$	1,000	$	1,042.80	$	5.31	$	1,000	$	1,019.82	$	5.25		1.05%
Class I	$	1,000	$	1,044.40	$	3.88	$	1,000	$	1,021.30	$	3.84		0.75%
Class R	$	1,000	$	1,041.40	$	6.84	$	1,000	$	1,018.39	$	6.76		1.33%
Class R6	$	1,000	$	1,045.20	$	3.07	$	1,000	$	1,022.10	$	3.03		0.59%
Class Y	$	1,000	$	1,043.20	$	5.01	$	1,000	$	1,020.14	$	4.95		0.98%

See footnotes on page 10.

4 SEMIANNUAL REPORT 2016

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy Core Equity Fund
Class A	$	1,000	$	1,058.10	$	5.97	$	1,000	$	1,019.31	$	5.86		1.15%
Class B**	$	1,000	$	1,053.50	$	10.99	$	1,000	$	1,014.40	$	10.78		2.13%
Class C	$	1,000	$	1,054.50	$	9.86	$	1,000	$	1,015.45	$	9.67		1.92%
Class E	$	1,000	$	1,058.40	$	6.18	$	1,000	$	1,019.03	$	6.06		1.21%
Class I	$	1,000	$	1,059.80	$	4.33	$	1,000	$	1,020.87	$	4.24		0.84%
Class R	$	1,000	$	1,056.00	$	7.71	$	1,000	$	1,017.54	$	7.57		1.50%
Class R6	$	1,000	$	1,060.40	$	3.91	$	1,000	$	1,021.28	$	3.84		0.76%
Class Y	$	1,000	$	1,059.90	$	4.33	$	1,000	$	1,020.87	$	4.24		0.84%
Ivy Cundill Global Value Fund
Class A	$	1,000	$	1,052.30	$	8.62	$	1,000	$	1,016.71	$	8.47		1.67%
Class B**	$	1,000	$	1,044.90	$	15.54	$	1,000	$	1,009.85	$	15.27		3.04%
Class C	$	1,000	$	1,049.60	$	11.38	$	1,000	$	1,013.93	$	11.18		2.22%
Class E	$	1,000	$	1,054.10	$	7.19	$	1,000	$	1,018.06	$	7.06		1.40%
Class I	$	1,000	$	1,055.30	$	6.17	$	1,000	$	1,019.07	$	6.06		1.20%
Class R	$	1,000	$	1,051.70	$	9.03	$	1,000	$	1,016.30	$	8.87		1.75%
Class R6	$	1,000	$	1,055.90	$	5.14	$	1,000	$	1,020.05	$	5.05		1.00%
Class Y	$	1,000	$	1,053.70	$	7.29	$	1,000	$	1,018.00	$	7.16		1.41%
Ivy Dividend Opportunities Fund
Class A	$	1,000	$	1,049.10	$	6.45	$	1,000	$	1,018.76	$	6.36		1.26%
Class B**	$	1,000	$	1,044.80	$	10.43	$	1,000	$	1,014.83	$	10.28		2.04%
Class C	$	1,000	$	1,045.80	$	9.82	$	1,000	$	1,015.45	$	9.67		1.92%
Class E	$	1,000	$	1,048.90	$	6.15	$	1,000	$	1,019.09	$	6.06		1.19%
Class I	$	1,000	$	1,050.00	$	4.92	$	1,000	$	1,020.24	$	4.85		0.97%
Class R	$	1,000	$	1,047.00	$	7.88	$	1,000	$	1,017.38	$	7.77		1.53%
Class R6	$	1,000	$	1,051.20	$	4.10	$	1,000	$	1,021.08	$	4.04		0.81%
Class Y	$	1,000	$	1,048.90	$	6.15	$	1,000	$	1,019.09	$	6.06		1.19%
Ivy Emerging Markets Equity Fund
Class A	$	1,000	$	1,151.60	$	8.28	$	1,000	$	1,017.40	$	7.77		1.52%
Class B**	$	1,000	$	1,146.40	$	13.42	$	1,000	$	1,012.57	$	12.58		2.50%
Class C	$	1,000	$	1,147.00	$	12.77	$	1,000	$	1,013.16	$	11.98		2.38%
Class E***	$	1,000	$	1,152.60	$	7.32	$	1,000	$	1,018.24	$	6.86		1.36%
Class I	$	1,000	$	1,153.30	$	6.78	$	1,000	$	1,018.73	$	6.36		1.26%
Class R	$	1,000	$	1,150.00	$	10.00	$	1,000	$	1,015.81	$	9.37		1.84%
Class R6	$	1,000	$	1,154.20	$	5.92	$	1,000	$	1,019.54	$	5.55		1.10%
Class Y	$	1,000	$	1,151.70	$	8.28	$	1,000	$	1,017.40	$	7.77		1.52%

See footnotes on page 10.

2016 SEMIANNUAL REPORT 5

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy European Opportunities Fund
Class A	$	1,000	$	1,034.60	$	8.65	$	1,000	$	1,016.58	$	8.57		1.69%
Class B**	$	1,000	$	1,028.80	$	14.30	$	1,000	$	1,010.92	$	14.18		2.82%
Class C	$	1,000	$	1,031.30	$	11.88	$	1,000	$	1,013.40	$	11.78		2.33%
Class E***	$	1,000	$	1,036.30	$	6.72	$	1,000	$	1,018.45	$	6.66		1.32%
Class I	$	1,000	$	1,037.40	$	6.21	$	1,000	$	1,019.00	$	6.16		1.21%
Class R	$	1,000	$	1,033.90	$	9.15	$	1,000	$	1,016.05	$	9.07		1.80%
Class R6	$	1,000	$	1,037.90	$	5.40	$	1,000	$	1,019.78	$	5.35		1.06%
Class Y	$	1,000	$	1,035.50	$	7.73	$	1,000	$	1,017.49	$	7.67		1.51%
Ivy Global Bond Fund
Class A	$	1,000	$	1,051.50	$	5.03	$	1,000	$	1,020.12	$	4.95		0.99%
Class B**	$	1,000	$	1,047.50	$	8.91	$	1,000	$	1,016.37	$	8.77		1.74%
Class C	$	1,000	$	1,048.60	$	8.91	$	1,000	$	1,016.37	$	8.77		1.74%
Class I	$	1,000	$	1,053.90	$	3.80	$	1,000	$	1,021.37	$	3.74		0.74%
Class R	$	1,000	$	1,048.80	$	7.68	$	1,000	$	1,017.61	$	7.57		1.49%
Class R6	$	1,000	$	1,052.70	$	3.90	$	1,000	$	1,021.31	$	3.84		0.75%
Class Y	$	1,000	$	1,051.50	$	5.03	$	1,000	$	1,020.12	$	4.95		0.99%
Ivy Global Equity Income Fund
Class A	$	1,000	$	1,042.80	$	6.54	$	1,000	$	1,018.63	$	6.46		1.30%
Class B**	$	1,000	$	1,040.10	$	10.00	$	1,000	$	1,015.27	$	9.87		1.96%
Class C	$	1,000	$	1,040.20	$	9.89	$	1,000	$	1,015.36	$	9.77		1.94%
Class I	$	1,000	$	1,045.60	$	4.60	$	1,000	$	1,020.54	$	4.55		0.89%
Class R	$	1,000	$	1,042.20	$	7.96	$	1,000	$	1,017.29	$	7.87		1.55%
Class R6	$	1,000	$	1,046.20	$	4.19	$	1,000	$	1,021.01	$	4.14		0.81%
Class Y	$	1,000	$	1,044.30	$	6.03	$	1,000	$	1,019.12	$	5.96		1.19%
Ivy Global Growth Fund
Class A	$	1,000	$	1,031.10	$	7.62	$	1,000	$	1,017.61	$	7.57		1.49%
Class B**	$	1,000	$	1,025.20	$	13.57	$	1,000	$	1,011.72	$	13.48		2.66%
Class C	$	1,000	$	1,027.20	$	11.25	$	1,000	$	1,013.97	$	11.18		2.21%
Class E	$	1,000	$	1,032.50	$	6.10	$	1,000	$	1,019.04	$	6.06		1.20%
Class I	$	1,000	$	1,032.90	$	5.69	$	1,000	$	1,019.48	$	5.65		1.12%
Class R	$	1,000	$	1,030.00	$	8.63	$	1,000	$	1,016.58	$	8.57		1.69%
Class R6	$	1,000	$	1,033.60	$	4.78	$	1,000	$	1,020.34	$	4.75		0.95%
Class Y	$	1,000	$	1,031.50	$	6.91	$	1,000	$	1,018.31	$	6.86		1.35%

See footnotes on page 10.

6 SEMIANNUAL REPORT 2016

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy Global Income Allocation Fund
Class A	$	1,000	$	1,056.60	$	6.58	$	1,000	$	1,018.63	$	6.46		1.29%
Class B**	$	1,000	$	1,051.00	$	11.18	$	1,000	$	1,014.17	$	10.98		2.17%
Class C	$	1,000	$	1,053.10	$	9.75	$	1,000	$	1,015.54	$	9.57		1.90%
Class E	$	1,000	$	1,055.70	$	6.89	$	1,000	$	1,018.42	$	6.76		1.33%
Class I	$	1,000	$	1,058.10	$	4.94	$	1,000	$	1,020.31	$	4.85		0.95%
Class R	$	1,000	$	1,054.60	$	7.91	$	1,000	$	1,017.40	$	7.77		1.53%
Class R6	$	1,000	$	1,058.80	$	4.01	$	1,000	$	1,021.15	$	3.94		0.78%
Class Y	$	1,000	$	1,057.00	$	5.97	$	1,000	$	1,019.22	$	5.86		1.17%
Ivy High Income Fund
Class A	$	1,000	$	1,110.40	$	5.17	$	1,000	$	1,020.16	$	4.95		0.98%
Class B**	$	1,000	$	1,106.30	$	9.06	$	1,000	$	1,016.45	$	8.67		1.72%
Class C	$	1,000	$	1,106.50	$	8.85	$	1,000	$	1,016.68	$	8.47		1.67%
Class E	$	1,000	$	1,109.30	$	6.33	$	1,000	$	1,019.09	$	6.06		1.19%
Class I	$	1,000	$	1,111.80	$	3.80	$	1,000	$	1,021.44	$	3.64		0.72%
Class R	$	1,000	$	1,108.60	$	6.96	$	1,000	$	1,018.49	$	6.66		1.31%
Class R6	$	1,000	$	1,113.00	$	2.96	$	1,000	$	1,022.25	$	2.83		0.56%
Class Y	$	1,000	$	1,110.50	$	5.07	$	1,000	$	1,020.27	$	4.85		0.96%
Ivy International Core Equity Fund
Class A	$	1,000	$	1,058.20	$	6.69	$	1,000	$	1,018.55	$	6.56		1.30%
Class B**	$	1,000	$	1,052.70	$	11.50	$	1,000	$	1,013.89	$	11.28		2.23%
Class C	$	1,000	$	1,054.70	$	10.17	$	1,000	$	1,015.17	$	9.98		1.97%
Class E	$	1,000	$	1,057.20	$	7.10	$	1,000	$	1,018.22	$	6.96		1.37%
Class I	$	1,000	$	1,059.10	$	5.04	$	1,000	$	1,020.20	$	4.95		0.97%
Class R	$	1,000	$	1,056.30	$	8.02	$	1,000	$	1,017.24	$	7.87		1.56%
Class R6	$	1,000	$	1,060.20	$	4.22	$	1,000	$	1,020.95	$	4.14		0.82%
Class Y	$	1,000	$	1,057.80	$	6.38	$	1,000	$	1,018.89	$	6.26		1.23%
Ivy Large Cap Growth Fund
Class A	$	1,000	$	1,061.20	$	5.98	$	1,000	$	1,019.31	$	5.86		1.15%
Class B**	$	1,000	$	1,056.30	$	10.80	$	1,000	$	1,014.61	$	10.58		2.09%
Class C	$	1,000	$	1,057.30	$	9.67	$	1,000	$	1,015.72	$	9.47		1.87%
Class E	$	1,000	$	1,061.20	$	5.98	$	1,000	$	1,019.32	$	5.86		1.15%
Class I	$	1,000	$	1,062.50	$	4.54	$	1,000	$	1,020.68	$	4.45		0.88%
Class R	$	1,000	$	1,059.40	$	7.62	$	1,000	$	1,017.72	$	7.47		1.47%
Class R6	$	1,000	$	1,063.30	$	3.71	$	1,000	$	1,021.44	$	3.64		0.71%
Class Y	$	1,000	$	1,062.10	$	5.46	$	1,000	$	1,019.77	$	5.35		1.06%

See footnotes on page 10.

2016 SEMIANNUAL REPORT 7

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy Limited-Term Bond Fund
Class A	$	1,000	$	1,016.60	$	4.44	$	1,000	$	1,020.67	$	4.45		0.88%
Class B**	$	1,000	$	1,012.50	$	8.55	$	1,000	$	1,016.55	$	8.57		1.70%
Class C	$	1,000	$	1,012.90	$	8.15	$	1,000	$	1,016.98	$	8.17		1.61%
Class E	$	1,000	$	1,016.10	$	5.04	$	1,000	$	1,020.10	$	5.05		0.98%
Class I	$	1,000	$	1,017.90	$	3.23	$	1,000	$	1,021.88	$	3.24		0.64%
Class R	$	1,000	$	1,014.80	$	6.25	$	1,000	$	1,018.86	$	6.26		1.24%
Class R6	$	1,000	$	1,018.60	$	2.42	$	1,000	$	1,022.65	$	2.43		0.48%
Class Y	$	1,000	$	1,016.70	$	4.44	$	1,000	$	1,020.67	$	4.45		0.88%
Ivy Managed International Opportunities Fund(3)
Class A	$	1,000	$	1,055.00	$	2.47	$	1,000	$	1,022.63	$	2.43		0.49%
Class B**	$	1,000	$	1,051.90	$	7.18	$	1,000	$	1,018.07	$	7.06		1.40%
Class C	$	1,000	$	1,051.70	$	6.46	$	1,000	$	1,018.78	$	6.36		1.26%
Class E***	$	1,000	$	1,054.90	$	2.05	$	1,000	$	1,023.12	$	2.02		0.39%
Class I	$	1,000	$	1,055.80	$	0.82	$	1,000	$	1,024.31	$	0.81		0.14%
Class R	$	1,000	$	1,053.00	$	3.49	$	1,000	$	1,021.65	$	3.44		0.68%
Class Y	$	1,000	$	1,055.00	$	1.95	$	1,000	$	1,023.17	$	1.92		0.38%
Ivy Micro Cap Growth Fund
Class A	$	1,000	$	1,302.10	$	9.90	$	1,000	$	1,016.46	$	8.67		1.72%
Class B**	$	1,000	$	1,295.40	$	15.26	$	1,000	$	1,011.79	$	13.38		2.65%
Class C	$	1,000	$	1,296.90	$	14.36	$	1,000	$	1,012.60	$	12.58		2.49%
Class I	$	1,000	$	1,304.40	$	7.49	$	1,000	$	1,018.54	$	6.56		1.30%
Class R	$	1,000	$	1,300.90	$	10.70	$	1,000	$	1,015.81	$	9.37		1.85%
Class R6	$	1,000	$	1,305.80	$	6.34	$	1,000	$	1,019.59	$	5.55		1.09%
Class Y	$	1,000	$	1,303.40	$	8.75	$	1,000	$	1,017.44	$	7.67		1.52%
Ivy Mid Cap Growth Fund
Class A	$	1,000	$	1,070.70	$	6.83	$	1,000	$	1,018.51	$	6.66		1.31%
Class B**	$	1,000	$	1,066.60	$	10.85	$	1,000	$	1,014.57	$	10.58		2.09%
Class C	$	1,000	$	1,066.50	$	10.54	$	1,000	$	1,014.85	$	10.28		2.04%
Class E	$	1,000	$	1,070.60	$	6.73	$	1,000	$	1,018.57	$	6.56		1.30%
Class I	$	1,000	$	1,072.00	$	5.39	$	1,000	$	1,019.83	$	5.25		1.05%
Class R	$	1,000	$	1,069.20	$	8.38	$	1,000	$	1,016.95	$	8.17		1.62%
Class R6	$	1,000	$	1,073.20	$	4.46	$	1,000	$	1,020.74	$	4.34		0.87%
Class Y	$	1,000	$	1,071.10	$	6.52	$	1,000	$	1,018.74	$	6.36		1.26%

See footnotes on page 10.

8 SEMIANNUAL REPORT 2016

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy Mid Cap Income Opportunities Fund
Class A	$	1,000	$	1,078.30	$	7.17	$	1,000	$	1,018.19	$	6.96		1.35%
Class C	$	1,000	$	1,074.20	$	10.79	$	1,000	$	1,014.67	$	10.48		2.07%
Class E	$	1,000	$	1,079.40	$	6.65	$	1,000	$	1,018.72	$	6.46		1.28%
Class I	$	1,000	$	1,080.60	$	5.62	$	1,000	$	1,019.66	$	5.45		1.05%
Class R	$	1,000	$	1,075.40	$	9.13	$	1,000	$	1,016.22	$	8.87		1.78%
Class R6	$	1,000	$	1,080.60	$	5.31	$	1,000	$	1,019.96	$	5.15		1.03%
Class Y	$	1,000	$	1,078.30	$	7.17	$	1,000	$	1,018.19	$	6.96		1.35%
Ivy Money Market Fund
Class A	$	1,000	$	1,000.10	$	2.90	$	1,000	$	1,022.18	$	2.93		0.58%
Class B**	$	1,000	$	1,000.10	$	2.90	$	1,000	$	1,022.18	$	2.93		0.58%
Class C	$	1,000	$	1,000.00	$	2.90	$	1,000	$	1,022.17	$	2.93		0.58%
Class E	$	1,000	$	1,000.10	$	2.90	$	1,000	$	1,022.16	$	2.93		0.58%
Ivy Municipal Bond Fund
Class A	$	1,000	$	1,018.20	$	5.05	$	1,000	$	1,020.10	$	5.05		0.99%
Class B**	$	1,000	$	1,014.40	$	8.86	$	1,000	$	1,016.30	$	8.87		1.75%
Class C	$	1,000	$	1,014.40	$	8.76	$	1,000	$	1,016.39	$	8.77		1.73%
Class I	$	1,000	$	1,019.20	$	4.04	$	1,000	$	1,021.11	$	4.04		0.79%
Class Y	$	1,000	$	1,018.20	$	5.05	$	1,000	$	1,020.08	$	5.05		0.99%
Ivy Municipal High Income Fund
Class A	$	1,000	$	1,038.30	$	4.38	$	1,000	$	1,020.77	$	4.34		0.86%
Class B**	$	1,000	$	1,034.30	$	8.24	$	1,000	$	1,016.93	$	8.17		1.62%
Class C	$	1,000	$	1,034.50	$	8.04	$	1,000	$	1,017.14	$	7.97		1.58%
Class I	$	1,000	$	1,039.20	$	3.47	$	1,000	$	1,021.67	$	3.44		0.68%
Class Y	$	1,000	$	1,038.30	$	4.38	$	1,000	$	1,020.77	$	4.34		0.86%
Ivy Small Cap Growth Fund
Class A	$	1,000	$	1,105.30	$	7.47	$	1,000	$	1,017.97	$	7.16		1.42%
Class B**	$	1,000	$	1,101.10	$	11.77	$	1,000	$	1,013.83	$	11.28		2.24%
Class C	$	1,000	$	1,101.60	$	10.93	$	1,000	$	1,014.68	$	10.48		2.07%
Class E	$	1,000	$	1,105.40	$	7.58	$	1,000	$	1,017.86	$	7.26		1.44%
Class I	$	1,000	$	1,107.70	$	5.69	$	1,000	$	1,019.65	$	5.45		1.08%
Class R	$	1,000	$	1,104.60	$	8.73	$	1,000	$	1,016.73	$	8.37		1.66%
Class R6	$	1,000	$	1,109.00	$	4.85	$	1,000	$	1,020.49	$	4.65		0.91%
Class Y	$	1,000	$	1,106.10	$	6.95	$	1,000	$	1,018.48	$	6.66		1.31%

See footnotes on page 10.

2016 SEMIANNUAL REPORT 9

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*		Beginning Account Value 3-31-16		Ending Account Value 9-30-16		Expenses Paid During Period*
Ivy Small Cap Value Fund
Class A	$	1,000	$	1,166.20	$	8.34	$	1,000	$	1,017.40	$	7.77		1.53%
Class B**	$	1,000	$	1,160.20	$	13.39	$	1,000	$	1,012.64	$	12.48		2.48%
Class C	$	1,000	$	1,162.20	$	12.00	$	1,000	$	1,013.95	$	11.18		2.22%
Class E***	$	1,000	$	1,168.10	$	6.61	$	1,000	$	1,018.97	$	6.16		1.22%
Class I	$	1,000	$	1,168.60	$	6.18	$	1,000	$	1,019.42	$	5.76		1.13%
Class R	$	1,000	$	1,164.70	$	9.20	$	1,000	$	1,016.52	$	8.57		1.70%
Class R6	$	1,000	$	1,169.50	$	5.21	$	1,000	$	1,020.25	$	4.85		0.96%
Class Y	$	1,000	$	1,167.00	$	7.48	$	1,000	$	1,018.21	$	6.96		1.37%
Ivy Tax-Managed Equity Fund
Class A	$	1,000	$	1,043.90	$	6.13	$	1,000	$	1,019.08	$	6.06		1.20%
Class B**	$	1,000	$	1,039.90	$	9.79	$	1,000	$	1,015.50	$	9.67		1.91%
Class C	$	1,000	$	1,039.50	$	9.99	$	1,000	$	1,015.27	$	9.87		1.96%
Class I	$	1,000	$	1,045.10	$	5.01	$	1,000	$	1,020.19	$	4.95		0.97%
Class Y	$	1,000	$	1,043.30	$	6.13	$	1,000	$	1,019.03	$	6.06		1.20%
Ivy Value Fund
Class A	$	1,000	$	1,065.30	$	7.02	$	1,000	$	1,018.25	$	6.86		1.36%
Class B**	$	1,000	$	1,059.70	$	12.36	$	1,000	$	1,013.05	$	12.08		2.40%
Class C	$	1,000	$	1,062.00	$	10.31	$	1,000	$	1,015.10	$	10.08		1.99%
Class E***	$	1,000	$	1,066.50	$	5.68	$	1,000	$	1,019.57	$	5.55		1.10%
Class I	$	1,000	$	1,067.20	$	5.27	$	1,000	$	1,019.98	$	5.15		1.01%
Class R	$	1,000	$	1,063.90	$	8.26	$	1,000	$	1,017.11	$	8.07		1.59%
Class R6	$	1,000	$	1,067.80	$	4.34	$	1,000	$	1,020.86	$	4.24		0.85%
Class Y	$	1,000	$	1,066.00	$	6.30	$	1,000	$	1,018.99	$	6.16		1.20%

* 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, 2016, and divided by 365.

** These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

*** Class share is 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 of this section.

(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.

(3) Annualized Expense Ratio Based on the Six-Month Period does not include expenses of Underlying Ivy Funds in which Ivy Managed International Opportunities Fund invests.

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

10 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	1.1%
Financials	0.8%
Real Estate	0.3%
Bonds	95.8%
Corporate Debt Securities	41.0%
United States Government and Government Agency Obligations	35.2%
Asset-Backed Securities	12.4%
Mortgage-Backed Securities	5.9%
Municipal Bonds – Taxable	1.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.1%

Lipper Rankings

Category: Lipper Corporate Debt Funds A Rated	Rank	Percentile
1 Year	25/46		54
3 Year	21/41		50
5 Year	20/37		53
10 Year	24/30		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.

Quality Weightings

Investment Grade	85.7%
AAA	4.6%
AA	37.9%
A	9.3%
BBB	33.9%
Non-Investment Grade	10.1%
BB	7.1%
B	0.4%
CCC	0.3%
Below CCC	0.1%
Non-rated	2.2%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities	4.2%

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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 11

SCHEDULE OF INVESTMENTS IVY BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

PREFERRED STOCKS	Shares		Value
Financials
Diversified Banks – 0.6%
Wells Fargo & Co., 5.850%		173	$	4,628
Reinsurance – 0.2%
Pitney Bowes International Holdings, Inc., Series F, 6.125% (A)		2		1,545
Total Financials – 0.8%				6,173
Real Estate
Specialized REITs – 0.3%
Ventas, Inc., 5.450%		100		2,703
Total Real Estate – 0.3%				2,703
TOTAL PREFERRED STOCKS – 1.1%			$	8,876
(Cost: $8,424)
ASSET-BACKED SECURITIES	Principal
Air Canada Enhanced Equipment Trust Series 2015-2, Class AA,
6.625%, 5–15–18 (A)	$	460		478
Air Canada Pass Through Certificates, Series 2015-1, Class C,
5.000%, 3–15–20 (A)		5,030		5,080
America West Airlines, Inc., Pass Through Certificates, Series 1999-1,
7.930%, 1–2–19		537		570
America West Airlines, Inc., Pass Through Certificates, Series 2000-1,
8.057%, 7–2–20		703		794
American Airlines Class B Pass Through Certificates, Series 2013-2,
5.600%, 7–15–20 (A)		2,918		3,053
American Airlines Pass-Through Trusts, Pass-Through Certificates, Series 2013-1,
3.700%, 5–1–23		908		888
American Airlines, Inc., Class A Pass Through Certificates, Series 2013-2,
5.625%, 1–15–21 (A)		5,272		5,515
Aventura Mall Trust, Series 2013-AVM, Class B,
3.743%, 12–5–32 (A)(B)		3,600		3,821
Capital One Multi-Asset Execution Trust, Series 2004-B3,
1.254%, 1–18–22 (B)		2,000		2,007
CarMax Auto Owner Trust 2013-2, Class D:
1.880%, 11–15–19 (B)		1,300		1,311
2.060%, 11–15–19		1,000		1,002
CarMax Auto Owner Trust 2013-4, Class D,
2.600%, 4–15–20		2,000		2,016
Chrysler Capital Auto Receivables Trust 2013-AA, Class D,
2.930%, 8–17–20 (A)		1,400		1,412

ASSET-BACKED SECURITIES (Continued)	Principal		Value
Continental Airlines 2001-1 A-1,
8.048%, 11–1–20	$	565	$	632
Continental Airlines Pass Through Certificates, Series 2009-2,
7.250%, 11–10–19		1,239		1,416
Continental Airlines Pass Through Certificates, Series 2010-1B,
6.000%, 1–12–19		1,262		1,351
Continental Airlines, Inc. Class B Pass Through Certificates, Series 2012-1B,
6.250%, 4–11–20		696		746
CVS Caremark Corp. Pass-Through Trust:
6.036%, 12–10–28		3,709		4,304
6.943%, 1–10–30		3,037		3,703
Delta Air Lines, Inc. Class A Pass Through Certificates, Series 2010-2,
4.250%, 7–30–23		2,265		2,339
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1A,
4.750%, 5–7–20		1,611		1,740
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1B,
6.875%, 5–7–19 (A)		3,886		4,196
Earnest Student Loan Program LLC, Series 2016-B, Class A2,
3.020%, 5–25–34 (A)		3,423		3,435
Fan Engine Securitization Ltd., Series 2013-1X,
3.000%, 10–15–19 (A)		665		665
Foursight Capital Automobile Receivables Trust, Series 2016-1, Class B:
2.340%, 1–15–21 (A)		2,180		2,182
3.710%, 1–18–22 (A)		3,202		3,198
Hawaiian Airlines Pass Through Certificates, Series 2013-1,
4.950%, 1–15–22		3,876		3,876
Hyundai Auto Receivables Trust 2014-A, Class D:
2.020%, 8–15–19		1,000		1,007
1.780%, 7–15–20		2,500		2,508
2.530%, 7–15–20		1,000		1,010
2.510%, 12–15–20		2,000		2,011
Longtrain Leasing III LLC, Series 2015A-1,
2.980%, 1–15–45 (A)		1,147		1,131
Longtrain Leasing III LLC, Series 2015A-2,
4.060%, 1–15–45 (A)		6,275		5,898
SBA Tower Trust, Series 2013-1C (GTD by SBA Guarantor LLC and SBA Holdings LLC),
2.240%, 4–16–18 (A)		3,120		3,130
SoFi Professional Loan Program LLC, Series 2014-B,
1.775%, 8–25–32 (A)(B)		2,573		2,598
SoFi Professional Loan Program LLC, Series 2015-A2,
2.420%, 3–25–30 (A)		1,826		1,848

ASSET-BACKED SECURITIES (Continued)	Principal		Value
Tal Advantage V LLC,
3.510%, 2–22–39 (A)	$	701	$	689
TCF Auto Receivables Owner Trust 2015-2, Class A3,
2.060%, 4–15–20 (A)(B)		3,665		3,693
U.S. Airways, Inc. Class C Pass-Through Certificates, Series 2012-2,
5.450%, 6–3–18		2,000		2,050
U.S. Airways, Inc., Series 2012-2, Class A,
6.750%, 6–3–21		1,907		2,074
United Airlines Pass-Through Certificates, Series 2014-1B,
4.750%, 4–11–22		1,042		1,066
United Airlines Pass-Through Certificates, Series 2014-2B,
4.625%, 9–3–22		3,698		3,754
Virgin Australia 2013-1B Trust,
6.000%, 10–23–20 (A)		1,251		1,270
Wheels SPV LLC 2016-1A, Class A3,
1.870%, 5–20–25 (A)		925		926
TOTAL ASSET-BACKED SECURITIES – 12.4%			$	98,393
(Cost: $96,871)
CORPORATE DEBT SECURITIES
Consumer Discretionary
Automobile Manufacturers – 0.3%
General Motors Co.,
6.750%, 4–1–46		2,000		2,513
Cable & Satellite – 0.7%
DISH DBS Corp.,
7.750%, 7–1–26 (A)		3,000		3,188
Viacom, Inc.,
3.450%, 10–4–26		2,600		2,598
				5,786
Hotels, Resorts & Cruise Lines – 0.4%
Host Hotels & Resorts, Inc. and Host Hotels & Resorts L.P.,
5.250%, 3–15–22		3,150		3,485
Housewares & Specialties – 0.5%
Newell Rubbermaid, Inc.,
5.000%, 11–15–23 (A)		3,518		3,746
Total Consumer Discretionary – 1.9%				15,530
Consumer Staples
Food Distributors – 0.5%
Flowers Foods, Inc.:
4.375%, 4–1–22		1,840		1,990
3.500%, 10–1–26		2,400		2,396
				4,386
Total Consumer Staples – 0.5%				4,386

12 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Energy
Oil & Gas Drilling – 0.1%
Noble Holding International Ltd.,
4.000%, 3–16–18 (B)	$	350	$	345
Oil & Gas Equipment & Services – 0.6%
Enterprise Products Operating L.P. (GTD by Enterprise Products Partners L.P.),
7.034%, 1–15–68		4,763		5,033
Oil & Gas Refining & Marketing – 1.5%
NuStar Logistics L.P. (GTD by NuStar Energy L.P. and NuStar Pipeline Operating Partnership L.P.):
8.150%, 4–15–18 (B)		5,345		5,772
4.800%, 9–1–20		2,340		2,346
6.750%, 2–1–21		1,011		1,089
Tesoro Corp.,
4.250%, 10–1–17		2,535		2,586
				11,793
Oil & Gas Storage & Transportation – 4.7%
Boardwalk Pipeline Partners L.P.,
5.200%, 6–1–18		2,500		2,543
Boardwalk Pipelines L.P. (GTD by Boardwalk Pipeline Partners L.P.):
5.750%, 9–15–19		3,975		4,235
3.375%, 2–1–23		1,731		1,643
Buckeye Partners L.P.,
5.600%, 10–15–44		7,481		7,765
Gulfstream Natural Gas System LLC,
4.600%, 9–15–25 (A)		1,975		2,072
Regency Energy Partners L.P. and Regency Energy Finance Corp.:
6.500%, 7–15–21		3,600		3,725
5.875%, 3–1–22		3,000		3,307
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.),
6.850%, 2–15–40		1,265		1,450
Tennessee Gas Pipeline Co.,
8.375%, 6–15–32		4,000		4,994
Tesoro Logistics L.P. and Tesoro Logistics Finance Corp.:
6.125%, 10–15–21		1,000		1,045
6.375%, 5–1–24		250		268
Transcanada Trust,
5.875%, 8–15–76		4,100		4,338
				37,385
Total Energy – 6.9%				54,556
Financials
Consumer Finance – 4.8%
Capital One Bank USA N.A.,
1.617%, 9–13–19 (B)		2,300		2,299
Capital One Financial Corp.,
3.750%, 7–28–26		4,300		4,323
Capital One Financial Corp., Series E,
5.550%, 12–29–49		5,770		5,871

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Finance (Continued)
Discover Bank:
8.700%, 11–18–19	$	458	$	528
3.100%, 6–4–20		4,525		4,655
3.450%, 7–27–26		3,975		4,001
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.):
2.400%, 5–9–19		1,000		1,003
3.500%, 7–10–19		1,645		1,694
3.150%, 1–15–20		1,400		1,427
4.375%, 9–25–21		1,080		1,154
5.250%, 3–1–26		3,600		3,942
Synchrony Financial,
2.600%, 1–15–19		5,850		5,919
Union 13 Leasing LLC,
1.870%, 6–28–24		775		779
				37,595
Diversified Banks – 2.6%
Bank of America Corp.:
5.875%, 1–5–21		665		763
4.000%, 1–22–25		3,250		3,370
3.950%, 4–21–25		1,515		1,569
Citizens Bank N.A.,
2.300%, 12–3–18		2,500		2,529
Comerica, Inc.,
4.000%, 7–27–25		2,150		2,254
Compass Bank,
3.875%, 4–10–25		5,000		4,894
Huntington Bancshares, Inc.,
3.150%, 3–14–21		2,925		3,032
Huntington National Bank,
2.200%, 11–6–18		2,000		2,025
				20,436
Investment Banking & Brokerage – 2.1%
Goldman Sachs Group, Inc. (The):
1.755%, 4–25–19 (B)		4,304		4,336
5.250%, 7–27–21		1,000		1,129
Morgan Stanley:
5.500%, 7–28–21		1,090		1,243
3.125%, 7–27–26		1,650		1,667
5.450%, 12–29–29		3,700		3,712
Raymond James Financial, Inc.,
4.950%, 7–15–46		4,800		4,898
				16,985
Life & Health Insurance – 0.5%
Unum Group,
5.750%, 8–15–42		3,750		4,251
Other Diversified Financial Services – 2.5%
Citigroup, Inc.:
4.400%, 6–10–25		5,000		5,297
5.950%, 12–29–49		4,450		4,539
JPMorgan Chase & Co.,
5.000%, 12–29–49		2,600		2,568
TIAA Asset Management Finance Co. LLC:
2.950%, 11–1–19 (A)		2,500		2,576
4.125%, 11–1–24 (A)		2,125		2,241

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Other Diversified Financial Services (Continued)
Ulani MSN 37894 LLC,
2.184%, 12-20-24	$	2,679	$	2,722
				19,943
Property & Casualty Insurance – 0.7%
Liberty Mutual Group, Inc.,
6.500%, 5–1–42 (A)		4,361		5,433
Regional Banks – 0.7%
Synovus Financial Corp.:
7.875%, 2–15–19		3,025		3,350
5.750%, 12–15–25		2,000		2,120
				5,470
Specialized Finance – 0.8%
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.:
5.450%, 6–15–23 (A)		3,540		3,791
8.350%, 7–15–46 (A)		1,930		2,312
				6,103
Total Financials – 14.7%				116,216
Health Care
Health Care Facilities – 0.3%
NYU Hospitals Center,
4.428%, 7–1–42		2,170		2,329
Health Care Supplies – 1.3%
Bio-Rad Laboratories, Inc.,
4.875%, 12–15–20		5,000		5,472
Express Scripts Holding Co.,
3.000%, 7–15–23		3,175		3,226
Sinai Health System,
3.034%, 1–20–36		1,770		1,849
				10,547
Managed Health Care – 0.8%
Aetna, Inc.:
2.800%, 6–15–23		900		919
4.250%, 6–15–36		2,312		2,400
4.375%, 6–15–46		2,800		2,940
				6,259
Pharmaceuticals – 0.7%
Teva Pharmaceutical Finance Netherlands III B.V. (GTD by Teva Pharmaceutical Industries Ltd.),
2.800%, 7–21–23		5,350		5,366
Total Health Care – 3.1%				24,501
Industrials
Airlines – 0.4%
British Airways plc,
5.625%, 6–20–20 (A)		1,298		1,366
U.S. Airways Group, Inc., Class A,
6.250%, 4–22–23		914		1,035
U.S. Airways Group, Inc., Class B,
8.500%, 4–22–17		397		412

2016 SEMIANNUAL REPORT 13

SCHEDULE OF INVESTMENTS IVY BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Airlines (Continued)
United Air Lines, Inc.,
10.400%, 11–1–16	$	192	$	192
				3,005
Industrial Machinery – 0.8%
Pentair Finance S.A.,
3.625%, 9–15–20		6,000		6,215
Railroads – 0.9%
BNSF Funding Trust I,
6.613%, 12–15–55		6,280		7,246
Trucking – 0.1%
Tagua Leasing LLC,
1.900%, 7–12–24		892		897
Total Industrials – 2.2%				17,363
Information Technology
Application Software – 0.7%
Block Financial LLC (GTD by H&R Block, Inc.),
4.125%, 10–1–20		5,000		5,241
Systems Software – 0.5%
Microsoft Corp.,
3.950%, 8–8–56		4,175		4,229
Technology Hardware, Storage & Peripherals – 0.3%
Hewlett Packard Enterprise Co.,
2.850%, 10–5–18 (A)		2,300		2,343
Total Information Technology – 1.5%				11,813
Materials
Aluminum – 0.1%
Kaiser Aluminum Corp.,
5.875%, 5–15–24		1,000		1,045
Commodity Chemicals – 0.3%
Westlake Chemical Corp.,
5.000%, 8–15–46 (A)		1,925		1,948
Total Materials – 0.4%				2,993
Real Estate
Retail REITs – 0.4%
Retail Properties of America, Inc.,
4.000%, 3–15–25		2,950		2,936
Specialized REITs – 1.5%
American Tower Trust I,
1.551%, 3–15–18 (A)		3,070		3,063
Crown Castle International Corp.,
6.113%, 1–15–20 (A)		5,215		5,779
Hospitality Properties Trust,
4.650%, 3–15–24		1,200		1,234

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Specialized REITs (Continued)
Ventas Realty L.P. and Ventas Capital Corp.,
2.700%, 4–1–20	$	1,867	$	1,913
				11,989
Total Real Estate – 1.9%				14,925
Telecommunication Services
Integrated Telecommunication Services – 0.8%
AT&T, Inc.,
4.500%, 3–9–48 (A)		1,930		1,941
Frontier Communications Corp.:
8.875%, 9–15–20		3,105		3,350
6.250%, 9–15–21		750		721
				6,012
Wireless Telecommunication Service – 0.2%
T-Mobile USA, Inc.:
6.625%, 4–1–23		500		537
6.000%, 4–15–24		1,250		1,337
				1,874
Total Telecommunication Services – 1.0%				7,886
Utilities
Electric Utilities – 5.1%
AES Corp. (The),
6.000%, 5–15–26		3,000		3,165
Cleco Corporate Holdings LLC:
3.743%, 5–1–26 (A)		2,200		2,292
4.973%, 5–1–46 (A)		3,875		4,237
Duke Energy Corp.:
2.650%, 9–1–26		1,825		1,793
3.750%, 9–1–46		3,300		3,209
El Paso Electric Co.,
5.000%, 12–1–44		2,225		2,628
Entergy Corp.,
4.000%, 7–15–22		2,400		2,604
Exelon Corp.,
5.100%, 6–15–45		2,550		2,966
Exelon Generation Co. LLC,
2.950%, 1–15–20		4,535		4,674
Indianapolis Power & Light Co.,
4.700%, 9–1–45 (A)		3,750		4,276
IPALCO Enterprises, Inc.,
3.450%, 7–15–20		2,800		2,870
Massachusetts Electric Co.,
4.004%, 8–15–46 (A)		5,600		5,839
				40,553
Gas Utilities – 1.2%
AGL Capital Corp.,
3.875%, 11–15–25		3,250		3,494
Brooklyn Union Gas Co.,
4.504%, 3–10–46 (A)		2,875		3,255
Southern Co. Gas Capital Corp.,
3.950%, 10–1–46		2,800		2,838
				9,587

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Multi-Utilities – 0.6%
Dominion Resources, Inc.:
2.962%, 7–1–19 (B)	$	1,300	$	1,334
5.750%, 10–1–54		3,300		3,415
				4,749
Total Utilities — 6.9%				54,889
TOTAL CORPORATE DEBT SECURITIES – 41.0%			$	325,058
(Cost: $313,261)
MORTGAGE-BACKED SECURITIES
Commercial Mortgage-Backed Securities – 4.1%
7 WTC Depositor LLC Trust 2012-WTC Commercial Mortgage Pass-Through Certificates, Series 2012-7WTC,
4.082%, 3–13–31 (A)		984		993
BAMLL Commercial Mortgage Securities Trust 2014-520M, Class A,
4.325%, 8–15–46 (A)(B)		4,130		4,752
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-SMPD,
3.008%, 1–12–30 (A)(B)		1,240		1,235
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-GC35, Class A4,
3.209%, 5–10–49		2,585		2,724
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2016-P5,
3.396%, 10–10–49		4,340		4,470
Credit Suisse Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2014-ICE, Class B,
3.304%, 9–15–37 (A)		1,500		1,567
GS Mortgage Securities Corp. Trust, Commercial Mortgage Pass-Through Certificates, Series 2012-BWTR,
3.440%, 11–5–34 (A)(B)		1,000		1,019
Helios Leasing I LLC,
2.018%, 5–29–24		959		968
Hometown Commercial Capital LLC, Hometown Commercial Mortgage Pass-Through Notes 2006-1,
5.506%, 11–11–38 (A)		157		131
Hometown Commercial Trust, Commercial Mortgage-Backed Notes, Series 2007-1,
6.057%, 6–11–39 (A)		76		54

14 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MORTGAGE-BACKED SECURITIES (Continued)	Principal		Value
Commercial Mortgage-Backed Securities (Continued)
JPMorgan Chase Commercial Mortgage Securities Trust 2009-IWST, Commercial Mortgage Pass-Through Certificates, Series 2009-IWST:
7.151%, 12–5–27 (A)	$	1,425	$	1,616
7.694%, 12–5–27 (A)(B)		2,600		2,949
JPMorgan Chase Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2009-IWST,
2.151%, 12–5–27 (A)(B)		5,684		309
JPMorgan Chase Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2016-JP3,
3.144%, 8–15–49		1,031		1,057
Mellon Residential Funding,
6.750%, 6–25–28		1		1
Multi Security Asset Trust L.P., Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4,
5.880%, 11–28–35 (A)(B)		1,280		1,250
Vornado DP LLC Trust 2010, Commercial Mortgage Pass-Through Certificates, Series 2010-VNO,
5.280%, 9–13–28 (A)		1,200		1,310
Wells Fargo Commercial Mortgage Trust, Series 2016-BNK1, Class AS,
2.814%, 8–15–49		4,600		4,678
Wells Fargo Commerical Mortgage Trust, Series 2012-LC5 A3,
3.148%, 5–15–48		700		734
WFRBS Commercial Mortgage Trust 2011-C5,
3.667%, 11–15–44 (B)		435		471
				32,288
Other Mortgage-Backed Securities – 1.8%
Banc of America Mortgage Trust 2004-03,
4.875%, 4–25–19		21		20
Bear Stearns Mortgage Securities, Inc.,
8.000%, 11–25–29		109		85
C-Bass 2006-MH1 Trust,
5.276%, 10–25–36 (A)(B)		2,508		2,594
CCG Receivables Trust, Series 2015-1, Class A3,
1.920%, 1–17–23 (A)(B)		3,000		3,020
CHL Mortgage Pass-Through Trust 2004-J4,
5.250%, 5–25–34		74		72
Collateralized Mortgage Obligation Trust,
5.000%, 7–1–18		2		2

MORTGAGE-BACKED SECURITIES (Continued)	Principal			Value
Other Mortgage-Backed Securities (Continued)
COMM 2012-9W57 Mortgage Trust, Class A,
2.365%, 2–10–29 (A)	$	2,250		$	2,255
Connecticut Avenue Securities, Series 2013-C01,
1.475%, 5–25–24 (B)		1,305			1,306
CountryPlace Manufactured Housing Contract Trust 2005-1:
4.800%, 12–15–35 (A)(B)		20			20
5.200%, 12–15–35 (A)(B)		300			312
CWHEQ Home Equity Loan Trust, Series 2007-S2,
5.934%, 5–25–37 (B)		273			263
GMACM Home Equity Loan Trust 2007-HE1,
5.952%, 8–25–37 (B)		570			546
Green Tree Financial Corp., Manufactured Housing Contract, Pass-Through Certificates, Series 1993-3A7,
6.400%, 10–15–18		6			5
JPMorgan Mortgage Trust 2004-A3,
3.212%, 7–25–34 (B)		151			152
Merrill Lynch Mortgage Investors, Inc., Mortgage Pass-Through Certificates, Series 1997-C2,
6.250%, 12–10–29		326			326
Morgan Stanley Capital I Trust 2012-STAR, Class A-2,
3.201%, 8–5–34 (A)		1,350			1,408
Morgan Stanley Capital I Trust 2012-STAR, Class B,
3.451%, 8–5–34 (A)		930			965
Origen Manufactured Housing Contract Trust 2005-A,
5.860%, 6–15–36 (B)		43			45
Origen Manufactured Housing Contract Trust 2005-B,
5.910%, 1–15–37		549			566
Prudential Home Mortgage Securities:
6.647%, 4–28–24 (A)(B)		—	*		—	*
7.850%, 9–28–24 (A)(B)		1			1
RASC, Series 2003-KS10 Trust,
6.410%, 12–25–33		158			73
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1,
6.423%, 12–25–30 (B)		742			499
Structured Asset Mortgage Investments, Inc.,
1.558%, 5–2–30 (B)		6			1
					14,536
TOTAL MORTGAGE-BACKED SECURITIES – 5.9%				$	46,824
(Cost: $47,313)

MUNICIPAL BONDS – TAXABLE	Principal		Value
Alabama – 0.1%
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013T,
3.435%, 12–15–25	$	470	$	507
Florida – 0.1%
Sarasota Cnty, FL, Cap Impvt Rev Bonds, Ser 2010A,
7.016%, 10–1–40		520		614
New York – 0.9%
Port Auth of NY & NJ Consolidated Bonds, 168th Ser,
4.926%, 10–1–51		3,190		3,992
Port Auth of NY & NJ Consolidated Bonds, Ser 174,
4.458%, 10–1–62		3,000		3,477
				7,469
Washington – 0.2%
Pub Util Dist No. 1, Douglas Cnty, WA, Wells Hydroelec Bonds, Ser 2010A,
5.450%, 9–1–40		1,205		1,481
TOTAL MUNICIPAL BONDS – TAXABLE – 1.3%			$	10,071
(Cost: $8,272)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations – 24.9%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO:
2.725%, 9–25–24 (B)		5,500		5,671
3.325%, 5–25–28 (B)		2,500		2,583
1.875%, 1–25–29 (B)		742		745
5.300%, 1–15–33		84		94
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates:
5.500%, 12–1–17		18		18
5.500%, 9–1–19		50		52
5.000%, 4–1–23		234		250
3.500%, 8–1–26		630		669
2.500%, 3–1–28		629		654
2.500%, 4–1–28		604		627
5.000%, 5–1–29		66		73
3.500%, 5–1–32		1,283		1,371
6.500%, 9–1–32		42		50
6.000%, 11–1–33		49		56
5.500%, 5–1–34		465		536
6.500%, 5–1–34		120		145
5.500%, 6–1–34		139		158
5.000%, 9–1–34		2		2
5.500%, 9–1–34		4		5
5.500%, 10–1–34		193		218
5.500%, 7–1–35		61		69
5.000%, 8–1–35		62		69
5.500%, 10–1–35		65		75
5.000%, 11–1–35		169		188
5.000%, 12–1–35		38		42
6.500%, 7–1–36		59		68
7.000%, 12–1–37		56		61

2016 SEMIANNUAL REPORT 15

SCHEDULE OF INVESTMENTS IVY BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
5.500%, 2–1–39	$	301	$	343
5.000%, 11–1–39		149		168
5.000%, 1–1–40		948		1,070
5.000%, 3–1–40		1,427		1,614
5.000%, 4–1–40		286		319
5.000%, 8–1–40		261		289
4.000%, 10–1–40		806		864
4.000%, 11–1–40		849		937
4.500%, 1–1–41		762		837
4.000%, 2–1–41		1,521		1,655
4.000%, 3–1–41		484		530
4.500%, 3–1–41		392		433
4.500%, 4–1–41		1,065		1,184
4.000%, 6–1–41		529		580
4.000%, 8–1–41		344		373
4.000%, 11–1–41		3,814		4,113
3.500%, 3–1–42		1,911		2,041
3.000%, 8–1–42		1,270		1,332
3.500%, 8–1–42		3,314		3,533
3.000%, 1–1–43		1,551		1,628
3.000%, 2–1–43		1,889		1,989
3.500%, 7–1–44		2,616		2,760
3.500%, 12–1–44		5,190		5,475
3.500%, 5–25–45		6,712		6,917
3.000%, 7–1–45		9,172		9,542
3.500%, 3–1–46		2,757		2,908
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.000%, 9–1–17		3		3
6.000%, 1–1–18		16		16
5.500%, 2–1–18		13		14
5.500%, 3–1–18		3		3
5.000%, 5–1–18		50		51
5.000%, 6–1–18		11		11
5.000%, 7–1–18		6		6
5.000%, 10–1–18		39		40
5.500%, 9–1–19		17		18
3.000%, 9–1–22		757		796
5.000%, 7–1–23		127		141
6.000%, 8–1–23		131		145
5.500%, 2–1–24		54		61
4.500%, 4–1–25		198		210
3.500%, 11–1–25		400		426
3.500%, 6–1–26		618		654
3.000%, 10–1–27		4,755		4,992
2.500%, 11–1–27		1,203		1,241
2.500%, 10–1–28		705		730
6.000%, 8–1–29		46		53
7.500%, 5–1–31		18		20
7.000%, 9–1–31		7		9
7.000%, 11–1–31		96		112
6.500%, 12–1–31		9		11
6.500%, 2–1–32		91		105
7.000%, 2–1–32		72		86
7.000%, 3–1–32		107		129
6.500%, 4–1–32		18		22
6.500%, 5–1–32		36		42
6.500%, 7–1–32		11		13
6.500%, 8–1–32		18		22
6.000%, 9–1–32		21		25
6.500%, 9–1–32		42		48

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
6.000%, 10–1–32	$	343	$	401
6.500%, 10–1–32		44		52
6.000%, 11–1–32		251		295
3.500%, 12–1–32		1,877		2,002
6.000%, 3–1–33		445		522
5.500%, 4–1–33		304		350
6.000%, 4–1–33		16		19
5.500%, 5–1–33		32		37
6.000%, 6–1–33		74		85
6.500%, 8–1–33		16		19
6.000%, 10–1–33		40		46
6.000%, 12–1–33		84		98
5.500%, 1–1–34		150		170
6.000%, 1–1–34		47		54
5.000%, 3–1–34		293		330
5.500%, 3–1–34		29		34
5.500%, 4–1–34		29		33
5.000%, 5–1–34		17		19
6.000%, 8–1–34		75		87
5.500%, 9–1–34		238		273
6.000%, 9–1–34		92		106
6.500%, 9–1–34		193		222
5.500%, 11–1–34		308		350
6.000%, 11–1–34		133		154
6.500%, 11–1–34		9		11
5.000%, 12–1–34		433		486
5.500%, 1–1–35		301		344
5.500%, 2–1–35		701		805
6.500%, 3–1–35		170		204
5.000%, 4–1–35		81		91
5.500%, 4–1–35		167		190
4.500%, 5–1–35		242		266
5.500%, 6–1–35		8		8
4.500%, 7–1–35		237		260
5.000%, 7–1–35		583		653
5.500%, 7–1–35		74		84
5.500%, 8–1–35		9		10
5.500%, 10–1–35		319		369
5.500%, 11–1–35		173		197
5.500%, 12–1–35		186		211
5.000%, 2–1–36		45		50
5.500%, 2–1–36		91		97
6.500%, 2–1–36		39		45
5.500%, 9–1–36		214		243
5.500%, 11–1–36		85		97
6.000%, 11–1–36		60		69
6.000%, 1–1–37		43		50
6.000%, 5–1–37		113		133
5.500%, 6–1–37		59		68
6.000%, 8–1–37		57		66
6.000%, 9–1–37		70		82
7.000%, 10–1–37		17		18
5.500%, 3–1–38		208		242
5.000%, 4–1–38		280		318
5.500%, 5–1–38		59		67
6.000%, 10–1–38		192		222
6.000%, 12–1–38		119		138
4.500%, 6–1–39		169		188
5.000%, 12–1–39		382		433
5.500%, 12–1–39		251		287
5.000%, 3–1–40		899		1,014
6.000%, 6–1–40		113		129

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
4.500%, 10–1–40	$	766	$	843
4.000%, 12–1–40		1,119		1,206
3.500%, 4–1–41		1,959		2,091
4.000%, 4–1–41		1,272		1,387
4.500%, 4–1–41		1,963		2,175
5.000%, 4–1–41		234		266
4.500%, 7–1–41		1,037		1,139
4.000%, 8–1–41		836		901
4.000%, 9–1–41		1,343		1,461
3.500%, 10–1–41 TBA		1,285		1,356
4.000%, 10–1–41 TBA		5,467		5,893
3.500%, 11–1–41		3,286		3,510
3.500%, 1–1–42		4,122		4,370
3.000%, 3–1–42		1,214		1,264
3.500%, 4–1–42		5,973		6,325
3.500%, 8–1–42		1,981		2,114
3.000%, 9–1–42		2,090		2,186
3.000%, 10–1–42		3,580		3,722
3.500%, 1–1–43		1,084		1,148
3.500%, 2–1–43		1,435		1,545
3.500%, 3–1–43		2,015		2,166
3.000%, 5–1–43		7,215		7,524
4.000%, 1–1–44		1,233		1,360
4.000%, 4–1–44		3,453		3,710
3.500%, 5–1–45		2,165		2,288
3.500%, 6–1–45		2,096		2,230
3.500%, 7–1–45		1,601		1,691
3.500%, 8–1–45		2,273		2,409
3.500%, 9–1–45		1,386		1,467
3.000%, 12–1–45		1,440		1,498
3.000%, 1–1–46		3,844		4,001
Government National Mortgage Association Agency REMIC/CMO:
0.643%, 7–16–40 (B)(C)		121		—	*
0.000%, 3–16–42 (B)(C)		616		—	*
0.009%, 6–17–45 (B)(C)		398		—	*
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
6.250%, 7–15–24		56		62
4.000%, 8–20–31		693		749
5.000%, 7–15–33		175		197
5.000%, 7–15–34		123		138
5.500%, 12–15–34		159		182
5.000%, 1–15–35		170		191
3.250%, 11–20–35		667		708
5.000%, 12–15–35		288		324
4.000%, 6–20–36		1,071		1,158
5.500%, 7–15–38		166		191
5.500%, 10–15–38		201		231
5.500%, 2–15–39		58		66
5.000%, 12–15–39		145		165
5.000%, 1–15–40		934		1,045
4.500%, 6–15–40		480		540
5.000%, 7–15–40		227		255
4.000%, 12–20–40		570		635
4.000%, 1–15–41		745		804
4.000%, 10–15–41		456		493
3.500%, 10–20–43		1,881		2,002
3.000%, 10–1–44		365		382
4.000%, 12–20–44		742		796
3.500%, 2–20–45		3,318		3,525

16 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
3.000%, 3–15–45	$	3,622	$	3,798
3.000%, 3–20–45		2,061		2,163
3.500%, 3–20–45		2,218		2,357
3.500%, 4–20–45		5,004		5,317
3.500%, 4–20–46		1,489		1,583
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 1,
7.242%, 2–15–25 (B)		64		72
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 2,
7.793%, 2–15–25		17		19
				197,635
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 24.9%			$	197,635
(Cost: $192,148)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 10.3%
U.S. Treasury Bonds:
5.375%, 2–15–31 (D)		4,940		7,215
2.500%, 5–15–46		14,407		14,960

UNITED STATES GOVERNMENT OBLIGATIONS (Continued)	Principal		Value
Treasury Obligations (Continued)
U.S. Treasury Notes:
0.875%, 5–15–19	$	6,075	$	6,078
0.750%, 7–15–19		1,410		1,405
0.875%, 9–15–19		400		400
1.125%, 8–31–21		21,016		20,996
1.375%, 8–31–23		25,540		25,469
1.500%, 8–15–26		4,750		4,707
				81,230
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 10.3%			$	81,230
(Cost: $79,493)
SHORT-TERM SECURITIES
Commercial Paper (E) – 4.5%
BorgWarner, Inc.,
0.700%, 10–6–16		5,000		4,999
Campbell Soup Co.,
0.590%, 10–3–16		8,000		8,000
J.M. Smucker Co. (The),
0.700%, 10–3–16		9,800		9,799
John Deere Canada ULC (GTD by Deere & Co.),
0.450%, 11–7–16		5,000		4,998
Virginia Electric and Power Co.,
0.690%, 10–19–16		5,000		4,998

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (E) (Continued)
Wisconsin Electric Power Co.,
0.490%, 10–4–16	$	2,444	$	2,444
				35,238
Master Note – 0.3%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (F)		2,634		2,634
Municipal Obligations – 0.6%
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008A (GTD by U.S. Bank N.A.),
0.800%, 10–7–16 (F)		5,000		5,000
TOTAL SHORT-TERM SECURITIES – 5.4%			$	42,872
(Cost: $42,873)
TOTAL INVESTMENT SECURITIES – 102.3%			$	810,959
(Cost: $788,655)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.3)%				(18,457	)
NET ASSETS – 100.0%			$	792,502

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. At September 30, 2016 the total value of these securities amounted to $145,221 or 18.3% of net assets.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.

(C) Interest-only security. Amount shown as principal represents notional amount for computation of interest.

(D) All or a portion of securities with an aggregate value of $409 have been pledged as collateral on open futures contracts.

(E) Rate shown is the yield to maturity at September 30, 2016.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following futures contracts were outstanding at September 30, 2016 (contracts unrounded):

Description	Type	Expiration Date	Number of Contracts		Value		Unrealized Appreciation (Depreciation)
U.S. 10-Year Treasury Note	Short	12–30–16		240	$	(31,470)	$	(171	)
U.S. 5-Year Treasury Note	Long	1–5–17		459		55,776		267
					$	24,306	$	96

2016 SEMIANNUAL REPORT 17

SCHEDULE OF INVESTMENTS IVY BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Preferred Stocks	$	7,331	$	1,545	$	—
Asset-Backed Securities		—		97,728		665
Corporate Debt Securities		—		325,058		—
Mortgage-Backed Securities		—		46,824		—	*
Municipal Bonds		—		10,071		—
United States Government Agency Obligations		—		197,635		—
United States Government Obligations		—		81,230		—
Short-Term Securities		—		42,872		—
Total	$	7,331	$	802,963	$	665
Futures Contracts	$	267	$	—	$	—
Liabilities
Futures Contracts	$	171	$	—	$	—

During the period ended September 30, 2016, securities totaling $1 were transferred from Level 3 to Level 2 due to increased availability of observable market data due to increased market activity or information for these securities. Transfers out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

REIT = Real Estate Investment Trust

REMIC = Real Estate Mortgage Investment Conduit

TBA = To Be Announced

See Accompanying Notes to Financial Statements.

18 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY CORE EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	99.4%
Information Technology	24.0%
Consumer Discretionary	15.5%
Consumer Staples	13.1%
Health Care	12.0%
Energy	11.2%
Industrials	8.9%
Financials	6.7%
Real Estate	4.0%
Materials	2.4%
Telecommunication Services	1.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.6%

Lipper Rankings

Category: Lipper Large-Cap Core Funds	Rank	Percentile
1 Year	623/854		73
3 Year	633/769		83
5 Year	454/684		67
10 Year	95/535		18

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
Philip Morris International, Inc.	Consumer Staples	Tobacco
Microsoft Corp.	Information Technology	Systems Software
Halliburton Co.	Energy	Oil & Gas Equipment & Services
NXP Semiconductors N.V.	Information Technology	Semiconductors
Union Pacific Corp.	Industrials	Railroads
Kraft Foods Group, Inc.	Consumer Staples	Packaged Foods & Meats
Cimarex Energy Co.	Energy	Oil & Gas Exploration & Production
Shire Pharmaceuticals Group plc ADR	Health Care	Biotechnology
Adobe Systems, Inc.	Information Technology	Application Software
American Tower Corp., Class A	Real Estate	Specialized REITs

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 19

SCHEDULE OF INVESTMENTS IVY CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 3.5%
Johnson Controls, Inc.		431	$	20,071
Magna International, Inc.		379		16,278
				36,349
Broadcasting – 1.2%
CBS Corp., Class B		227		12,442
Cable & Satellite – 2.4%
Comcast Corp., Class A		370		24,526
Home Improvement Retail – 1.3%
Home Depot, Inc. (The)		107		13,724
Housewares & Specialties – 1.9%
Newell Rubbermaid, Inc.		384		20,195
Internet & Direct Marketing Retail – 2.7%
Amazon.com, Inc. (A)		34		28,064
Movies & Entertainment – 1.5%
Twenty-First Century Fox, Inc., Class A		629		15,237
Restaurants – 1.0%
Chipotle Mexican Grill, Inc., Class A (A)		24		10,291
Total Consumer Discretionary – 15.5%				160,828
Consumer Staples
Brewers – 2.7%
Molson Coors Brewing Co., Class B		260		28,559
Hypermarkets & Super Centers – 1.2%
Costco Wholesale Corp.		79		12,003
Packaged Foods & Meats – 5.7%
Kellogg Co.		189		14,626
Kraft Foods Group, Inc.		330		29,574
Mead Johnson Nutrition Co.		184		14,522
				58,722
Tobacco – 3.5%
Philip Morris International, Inc.		378		36,727
Total Consumer Staples – 13.1%				136,011
Energy
Oil & Gas Drilling – 1.3%
Helmerich & Payne, Inc.		189		12,726
Oil & Gas Equipment & Services – 3.1%
Halliburton Co.		721		32,352
Oil & Gas Exploration & Production – 6.8%
Cabot Oil & Gas Corp.		754		19,445
Cimarex Energy Co.		217		29,217

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Exploration & Production (Continued)
EOG Resources, Inc.		228	$	22,089
				70,751
Total Energy – 11.2%				115,829
Financials
Financial Exchanges & Data – 2.1%
CME Group, Inc.		210		21,991
Multi-Line Insurance – 2.3%
American International Group, Inc.		404		23,956
Other Diversified Financial Services – 2.3%
JPMorgan Chase & Co.		359		23,892
Total Financials – 6.7%				69,839
Health Care
Biotechnology – 4.6%
Alexion Pharmaceuticals, Inc. (A)		154		18,912
Shire Pharmaceuticals Group plc ADR		150		29,072
				47,984
Health Care Facilities – 1.9%
HCA Holdings, Inc. (A)		258		19,490
Pharmaceuticals – 5.5%
Allergan plc (A)		109		25,217
Bristol-Myers Squibb Co.		207		11,151
Teva Pharmaceutical Industries Ltd. ADR		463		21,282
				57,650
Total Health Care – 12.0%				125,124
Industrials
Aerospace & Defense – 1.3%
Rockwell Collins, Inc.		156		13,182
Railroads – 6.5%
Canadian Pacific Railway Ltd.		104		15,943
Kansas City Southern		217		20,250
Union Pacific Corp.		322		31,416
				67,609
Trucking – 1.1%
J.B. Hunt Transport Services, Inc.		144		11,660
Total Industrials – 8.9%				92,451
Information Technology
Application Software – 2.8%
Adobe Systems, Inc. (A)		266		28,904
Data Processing & Outsourced Services – 4.8%
MasterCard, Inc., Class A		247		25,139
Visa, Inc., Class A		299		24,728
				49,867

COMMON STOCKS (Continued)	Shares		Value
Internet Software & Services – 4.9%
Alibaba Group Holding Ltd. ADR (A)		226	$	23,877
Facebook, Inc., Class A (A)		214		27,411
				51,288
Semiconductor Equipment – 2.8%
Applied Materials, Inc.		947		28,540
Semiconductors – 5.2%
Analog Devices, Inc.		338		21,797
NXP Semiconductors N.V. (A)		314		32,047
				53,844
Systems Software – 3.5%
Microsoft Corp.		637		36,691
Total Information Technology – 24.0%				249,134
Materials
Industrial Gases – 1.1%
Air Products and Chemicals, Inc.		75		11,200
Specialty Chemicals – 1.3%
Sherwin-Williams Co. (The)		48		13,391
Total Materials – 2.4%				24,591
Real Estate
Specialized REITs – 4.0%
American Tower Corp., Class A		254		28,831
Crown Castle International Corp.		132		12,417
				41,248
Total Real Estate – 4.0%				41,248
Telecommunication Services
Alternative Carriers – 1.6%
Level 3 Communications, Inc. (A)		371		17,198
Total Telecommunication Services – 1.6%				17,198
TOTAL COMMON STOCKS – 99.4%			$	1,032,253
(Cost: $873,805)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 0.7%
Northern Illinois Gas Co.,
0.420%, 10-3–16	$	7,107		7,106
Master Note – 0.2%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (C)		2,009		2,009

20 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Value
TOTAL SHORT-TERM SECURITIES – 0.9%	$	9,115
(Cost: $9,116)
TOTAL INVESTMENT SECURITIES – 100.3%	$	1,041,368
(Cost: $882,921)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.3)%		(3,537	)
NET ASSETS – 100.0%	$	1,037,831

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, 2016.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	1,032,253	$	—	$	—
Short-Term Securities		—		9,115		—
Total	$	1,032,253	$	9,115	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

REIT = Real Estate Investment Trusts

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 21

PORTFOLIO HIGHLIGHTS IVY CUNDILL GLOBAL VALUE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	100.0%
Financials	28.5%
Industrials	15.9%
Energy	12.1%
Consumer Discretionary	11.9%
Health Care	11.5%
Information Technology	9.0%
Materials	5.3%
Consumer Staples	3.1%
Telecommunication Services	1.7%
Real Estate	1.0%
Cash and Other Assets (Net of Liabilities)	0.0%

Lipper Rankings

Category: Lipper Global Multi-Cap Value Funds	Rank	Percentile
1 Year	103/110		93
3 Year	72/75		95
5 Year	49/56		86
10 Year	32/36		87

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	67.1%
United States	61.7%
Canada	5.4%
Europe	18.8%
France	6.1%
Other Europe	12.7%
Pacific Basin	14.1%
Japan	6.2%
South Korea	4.2%
Other Pacific Basin	3.7%
Cash and Other Assets (Net of Liabilities)	0.0%

Top 10 Equity Holdings

Company	Country	Sector	Industry
American International Group, Inc.	United States	Financials	Multi-Line Insurance
Citigroup, Inc.	United States	Financials	Other Diversified Financial Services
Chesapeake Energy Corp., 5.750%, Cumulative	United States	Energy	Oil & Gas Exploration & Production
Wells Fargo & Co.	United States	Financials	Diversified Banks
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares	Germany	Financials	Reinsurance
Deere & Co.	United States	Industrials	Construction Machinery & Heavy Trucks
Goldman Sachs Group, Inc. (The)	United States	Financials	Investment Banking & Brokerage
Bank of America Corp.	United States	Financials	Diversified Banks
International Business Machines Corp.	United States	Information Technology	IT Consulting & Other Services
Apache Corp.	United States	Energy	Oil & Gas Exploration & Production

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

22 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY CUNDILL GLOBAL VALUE FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Canada
Consumer Discretionary – 1.7%
Magna International, Inc.		79	$	3,399
Energy – 2.1%
Cenovus Energy, Inc.		287		4,123
Materials – 1.6%
Canfor Corp. (A)		285		3,167
Total Canada – 5.4%				10,689
China
Information Technology – 0.7%
Baidu.com, Inc. ADR (A)		7		1,357
Total China – 0.7%				1,357
France
Health Care – 2.0%
Sanofi-Aventis		52		3,963
Industrials – 4.1%
Compagnie de Saint-Gobain		93		4,025
Vinci		53		4,091
				8,116
Total France – 6.1%				12,079
Germany
Financials – 3.4%
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares		37		6,861
Total Germany – 3.4%				6,861
Hong Kong
Financials – 2.0%
First Pacific Co. Ltd.		5,655		4,024
Real Estate – 1.0%
Cheung Kong (Holdings) Ltd.		158		2,009
Total Hong Kong – 3.0%				6,033
Italy
Consumer Discretionary – 2.6%
Mediaset S.p.A.		1,651		5,181
Total Italy – 2.6%				5,181
Japan
Consumer Discretionary – 3.4%
Honda Motor Co. Ltd.		191		5,433
SANKYO Co. Ltd.		40		1,357
				6,790

COMMON STOCKS (Continued)	Shares		Value
Information Technology – 1.1%
Hitachi Ltd.		474	$	2,191
Telecommunication Services – 1.7%
SoftBank Group Corp.		54		3,447
Total Japan – 6.2%				12,428
Luxembourg
Energy – 1.7%
Tenaris S.A.		240		3,418
Total Luxembourg – 1.7%				3,418
South Korea
Information Technology – 2.1%
Samsung Electronics Co. Ltd.		3		4,148
Materials – 2.1%
POSCO		21		4,282
Total South Korea – 4.2%				8,430
Switzerland
Health Care – 2.1%
Novartis AG, Registered Shares		52		4,088
Total Switzerland – 2.1%				4,088
United Kingdom
Industrials – 2.9%
G4S plc		1,302		3,844
Weir Group plc (The)		90		1,990
				5,834
Total United Kingdom – 2.9%				5,834
United States
Consumer Discretionary – 4.2%
TRI Pointe Group, Inc. (A)		320		4,217
Twenty-First Century Fox, Inc., Class A		172		4,170
				8,387
Consumer Staples – 3.1%
CVS Caremark Corp.		44		3,948
Wal-Mart Stores, Inc.		32		2,310
				6,258
Energy – 3.8%
Apache Corp.		87		5,537
Rowan Cos., Inc.		127		1,932
				7,469
Financials – 23.1%
American International Group, Inc.		240		14,238
Bank of America Corp.		388		6,070
Citigroup, Inc. (B)		257		12,150
Goldman Sachs Group, Inc. (The)		38		6,086

COMMON STOCKS (Continued)	Shares		Value
Financials (Continued)
Wells Fargo & Co.		170	$	7,549
				46,093
Health Care – 7.4%
Da Vita, Inc. (A)		80		5,278
HCA Holdings, Inc. (A)		67		5,047
McKesson Corp.		26		4,418
				14,743
Industrials – 8.9%
Deere & Co.		76		6,482
Nielsen Holdings plc		38		2,015
Union Pacific Corp.		50		4,841
Westinghouse Air Brake Technologies Corp.		55		4,498
				17,836
Information Technology – 5.1%
International Business Machines Corp.		38		6,054
Oracle Corp.		107		4,201
				10,255
Materials – 1.6%
Axalta Coating Systems Ltd. (A)		113		3,207
Total United States – 57.2%				114,248
TOTAL COMMON STOCKS – 95.5%			$	190,646
(Cost: $169,406)
PREFERRED STOCKS
United States
Energy – 4.5%
Chesapeake Energy Corp., 5.750%, Cumulative, Series A		15		7,817
Chesapeake Energy Corp., 5.750%, Cumulative		2		1,220
Total United States – 4.5%				9,037
TOTAL PREFERRED STOCKS – 4.5%			$	9,037
(Cost: $13,390)
TOTAL INVESTMENT SECURITIES – 100.0%			$	199,683
(Cost: $182,796)
LIABILITIES, NET OF CASH AND OTHER ASSETS – 0.0%				(27	)
NET ASSETS – 100.0%			$	199,656

2016 SEMIANNUAL REPORT 23

SCHEDULE OF INVESTMENTS IVY CUNDILL GLOBAL VALUE FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Notes to Schedule of Investments

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

(B) All or a portion of securities with an aggregate value of $269 are held in collateralized accounts for OTC derivatives collateral and is governed by International Swaps and Derivatives Association, Inc. Master Agreements.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
Japanese Yen		579,100	U.S. Dollar		5,748	11–30–16	Morgan Stanley International	$	24	$	—
Japanese Yen		576,410	U.S. Dollar		5,666	12–7–16	Morgan Stanley International		—		34
Euro		11,400	U.S. Dollar		12,816	12–23–16	Morgan Stanley International		—		39
Euro		805	U.S. Dollar		902	12–16–16	State Street Global Markets		—		6
								$	24	$	79

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	190,646	$	—	$	—
Preferred Stocks		1,220		7,817		—
Total	$	191,866	$	7,817	$	—
Forward Foreign Currency Contracts	$	—	$	24	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	79	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

OTC = Over the Counter

Market Sector Diversification

(as a % of net assets)
Financials	28.5%
Industrials	15.9%
Energy	12.1%
Consumer Discretionary	11.9%
Health Care	11.5%
Information Technology	9.0%
Materials	5.3%
Consumer Staples	3.1%
Telecommunication Services	1.7%
Real Estate	1.0%
Other+	0.0%

+ Includes cash and other assets (net of liabilities)

See Accompanying Notes to Financial Statements.

24 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY DIVIDEND OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	90.2%
Information Technology	14.6%
Health Care	12.7%
Industrials	11.8%
Financials	11.0%
Consumer Discretionary	10.2%
Energy	9.3%
Consumer Staples	7.7%
Materials	6.2%
Real Estate	4.7%
Utilities	2.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	9.8%

Lipper Rankings

Category: Lipper Equity Income Funds	Rank	Percentile
1 Year	423/512		83
3 Year	316/434		73
5 Year	186/312		60
10 Year	150/208		72

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
Pfizer, Inc.	Health Care	Pharmaceuticals
Microsoft Corp.	Information Technology	Systems Software
JPMorgan Chase & Co.	Financials	Other Diversified Financial Services
Teva Pharmaceutical Industries Ltd. ADR	Health Care	Pharmaceuticals
Chevron Corp.	Energy	Integrated Oil & Gas
Philip Morris International, Inc.	Consumer Staples	Tobacco
Comcast Corp., Class A	Consumer Discretionary	Cable & Satellite
General Electric Co.	Industrials	Industrial Conglomerates
Enterprise Products Partners L.P.	Energy	Oil & Gas Storage & Transportation
Union Pacific Corp.	Industrials	Railroads

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 25

SCHEDULE OF INVESTMENTS IVY DIVIDEND OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Advertising – 1.6%
Omnicom Group, Inc.		68	$	5,754
Apparel Retail – 0.6%
Limited Brands, Inc.		33		2,304
Cable & Satellite – 2.5%
Comcast Corp., Class A		140		9,301
Casinos & Gaming – 0.6%
International Game Technology plc		95		2,320
Home Improvement Retail – 1.7%
Home Depot, Inc. (The)		49		6,286
Housewares & Specialties – 1.6%
Newell Rubbermaid, Inc.		109		5,748
Restaurants – 1.6%
McDonalds Corp.		53		6,108
Total Consumer Discretionary – 10.2%				37,821
Consumer Staples
Brewers – 1.6%
Anheuser-Busch InBev S.A. ADR		46		6,019
Drug Retail – 1.7%
CVS Caremark Corp.		71		6,292
Packaged Foods & Meats – 1.8%
Unilever plc (A)		138		6,541
Tobacco – 2.6%
Philip Morris International, Inc.		99		9,644
Total Consumer Staples – 7.7%				28,496
Energy
Integrated Oil & Gas – 4.8%
Chevron Corp.		95		9,731
Suncor Energy, Inc.		293		8,142
				17,873
Oil & Gas Exploration & Production – 1.9%
Noble Energy, Inc.		193		6,914
Oil & Gas Storage & Transportation – 2.6%
Enterprise Products Partners L.P.		318		8,779
Noble Midstream Partners L.P. (B)		38		1,074
				9,853
Total Energy – 9.3%				34,640
Financials
Diversified Banks – 1.0%
Wells Fargo & Co.		82		3,609
Investment Banking & Brokerage – 0.9%
Morgan Stanley		102		3,280

COMMON STOCKS (Continued)	Shares		Value
Multi-Line Insurance – 2.2%
American International Group, Inc.		136	$	8,076
Other Diversified Financial Services – 3.8%
JPMorgan Chase & Co.		216		14,377
Property & Casualty Insurance – 1.8%
ACE Ltd.		53		6,634
Regional Banks – 1.3%
KeyCorp		303		3,691
PNC Financial Services Group, Inc. (The)		13		1,158
				4,849
Total Financials – 11.0%				40,825
Health Care
Health Care Equipment – 2.1%
Medtronic plc		90		7,761
Managed Health Care – 1.8%
Anthem, Inc.		53		6,654
Pharmaceuticals – 8.8%
Bristol-Myers Squibb Co.		58		3,114
Pfizer, Inc.		499		16,884
Teva Pharmaceutical Industries Ltd. ADR		276		12,690
				32,688
Total Health Care – 12.7%				47,103
Industrials
Aerospace & Defense – 3.9%
BAE Systems plc (A)		704		4,781
Boeing Co. (The)		23		3,083
Honeywell International, Inc.		58		6,779
				14,643
Construction Machinery & Heavy Trucks – 1.2%
PACCAR, Inc.		73		4,276
Industrial Conglomerates – 2.4%
General Electric Co.		305		9,033
Industrial Machinery – 1.0%
Eaton Corp.		59		3,903
Railroads – 2.2%
Union Pacific Corp.		84		8,149
Research & Consulting Services – 1.1%
Nielsen Holdings plc		75		4,015
Total Industrials – 11.8%				44,019
Information Technology
Communications Equipment – 4.0%
Harris Corp.		86		7,846

COMMON STOCKS (Continued)	Shares		Value
Communications Equipment (Continued)
Nokia Corp., Series A ADR		1,192	$	6,902
				14,748
Data Processing & Outsourced Services – 0.9%
Paychex, Inc.		61		3,556
Semiconductor Equipment – 1.3%
Applied Materials, Inc.		158		4,768
Semiconductors – 4.2%
Analog Devices, Inc.		124		8,017
Cypress Semiconductor Corp.		626		7,616
				15,633
Systems Software – 4.2%
Microsoft Corp.		274		15,783
Total Information Technology – 14.6%				54,488
Materials
Diversified Chemicals – 2.8%
Dow Chemical Co. (The)		71		3,659
PPG Industries, Inc.		67		6,889
				10,548
Industrial Gases – 1.7%
Air Products and Chemicals, Inc.		42		6,380
Paper Packaging – 1.7%
International Paper Co.		131		6,281
Total Materials – 6.2%				23,209
Real Estate
Industrial REITs – 1.0%
ProLogis		71		3,791
Specialized REITs – 3.7%
Communications Sales & Leasing, Inc.		108		3,388
Crown Castle International Corp.		82		7,711
Life Storage, Inc.		30		2,668
				13,767
Total Real Estate – 4.7%				17,558
Utilities
Electric Utilities – 2.0%
Exelon Corp.		162		5,388
PPL Corp.		64		2,200
				7,588
Total Utilities – 2.0%				7,588
TOTAL COMMON STOCKS – 90.2%			$	335,747
(Cost: $269,539)

26 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY DIVIDEND OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (C) – 5.8%
Northern Illinois Gas Co.,
0.420%, 10–3–16	$	9,714	$	9,713
United Technologies Corp.,
0.850%, 11–16–16		5,000		4,995
Virginia Electric and Power Co.:
0.690%, 10–19–16		5,000		4,998
0.720%, 11–2–16		2,000		1,999
				21,705
Master Note – 0.9%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (D)		3,408		3,408

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – 3.1%
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.),
0.840%, 10–7–16 (D)	$	9,000	$	9,000
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.),
0.780%, 10–7–16 (D)		2,500		2,500
				11,500
TOTAL SHORT-TERM SECURITIES – 9.8%			$	36,613
(Cost: $36,614)
TOTAL INVESTMENT SECURITIES – 100.0%			$	372,360
(Cost: $306,153)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.0%				4
NET ASSETS – 100.0%			$	372,364

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) Rate shown is the yield to maturity at September 30, 2016.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	335,747	$	—	$	—
Short-Term Securities		—		36,613		—
Total	$	335,747	$	36,613	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

REIT = Real Estate Investment Trusts

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 27

PORTFOLIO HIGHLIGHTS IVY EMERGING MARKETS EQUITY FUNDS

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	99.2%
Information Technology	32.1%
Financials	15.4%
Consumer Discretionary	14.3%
Consumer Staples	11.1%
Energy	6.9%
Materials	5.6%
Health Care	5.5%
Real Estate	3.0%
Utilities	2.4%
Industrials	1.9%
Telecommunication Services	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.8%

Lipper Rankings

Category: Lipper Emerging Markets Funds	Rank	Percentile
1 Year	199/839		24
3 Year	18/587		4
5 Year	53/424		13
10 Year	36/170		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.

Country Weightings

Pacific Basin	63.6%
South Korea	17.6%
China	14.2%
India	10.5%
Taiwan	8.9%
Other Pacific Basin	12.4%
South America	18.8%
Brazil	18.8%
Europe	9.7%
Russia	7.3%
Other Europe	2.4%
North America	4.0%
Other	3.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.8%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Samsung Electronics Co. Ltd.	South Korea	Information Technology	Semiconductors
Sberbank of Russia ADR	Russia	Financials	Diversified Banks
Raia Drogasil S.A.	Brazil	Consumer Staples	Drug Retail
Petroleo Brasileiro S.A.	Brazil	Energy	Integrated Oil & Gas
Naspers Ltd., Class N	South Africa	Consumer Discretionary	Cable & Satellite
Alibaba Group Holding Ltd. ADR	China	Information Technology	Internet Software & Services
Tencent Holdings Ltd.	China	Information Technology	Internet Software & Services
Taiwan Semiconductor Manufacturing Co. Ltd.	Taiwan	Information Technology	Semiconductors
Largan Precision Co. Ltd.	Taiwan	Information Technology	Electronic Components
PJSC LUKOIL ADR	Russia	Energy	Integrated Oil & Gas

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

28 SEMIANNUAL REPORT 2016

CONSOLIDATED SCHEDULE OF INVESTMENTS IVY EMERGING MARKETS EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Brazil
Consumer Discretionary – 1.0%
Kroton Educacional S.A.		1,316	$	6,031
Consumer Staples – 5.0%
Hypermarcas S.A.		985		8,522
Raia Drogasil S.A.		1,014		20,846
				29,368
Energy – 3.2%
Petroleo Brasileiro S.A. (A)		4,564		19,227
Financials – 4.7%
Banco Bradesco S.A.		1,070		9,855
Banco do Brasil S.A.		880		6,209
Itau Unibanco Holdings S.A.		1,089		11,971
				28,035
Information Technology – 1.6%
MercadoLibre, Inc.		51		9,458
Materials – 1.3%
Vale S.A.		1,401		7,705
Real Estate – 1.0%
BRMalls Participacoes S.A. (A)		1,504		5,725
Utilities – 1.0%
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP		617		5,732
Total Brazil – 18.8%				111,281
China
Consumer Discretionary – 2.6%
Brilliance China Automotive Holdings Ltd.		6,982		7,831
BYD Co. Ltd., H Shares (A)		1,098		7,206
				15,037
Consumer Staples – 1.4%
WH Group Ltd.		10,492		8,441
Information Technology – 10.2%
Alibaba Group Holding Ltd. ADR (A)		174		18,457
Baidu.com, Inc. ADR (A)		38		6,866
NetEase.com, Inc. ADR		31		7,496
Sunny Optical Technology (Group) Co. Ltd.		2,185		10,787
Tencent Holdings Ltd.		619		16,998
				60,604
Total China – 14.2%				84,082
Hong Kong
Consumer Staples – 1.2%
China Resources Beer (Holdings) Co. Ltd.		3,227		6,848

COMMON STOCKS (Continued)	Shares		Value
Information Technology – 1.4%
AAC Technologies Holdings, Inc.		853	$	8,567
Total Hong Kong – 2.6%				15,415
India
Consumer Discretionary – 3.4%
Maruti Suzuki India Ltd.		165		13,582
Page Industries Ltd.		30		6,797
				20,379
Consumer Staples – 1.0%
ITC Ltd.		1,712		6,206
Financials – 3.6%
Axis Bank Ltd.		876		7,123
HDFC Bank Ltd.		435		8,315
YES BANK Ltd.		310		5,834
				21,272
Health Care – 1.5%
Biocon Ltd.		618		8,658
Industrials – 1.0%
Larsen & Toubro Ltd.		263		5,662
Total India – 10.5%				62,177
Indonesia
Financials – 1.4%
PT Bank Mandiri (Persero) Tbk		9,382		8,051
Real Estate – 1.0%
PT Lippo Karawaci Tbk		81,662		6,195
Telecommunication Services – 1.0%
PT Telekomunikasi Indonesia Persero Tbk		17,424		5,754
Total Indonesia – 3.4%				20,000
Malaysia
Industrials – 0.9%
AirAsia Berhad		7,942		5,358
Total Malaysia – 0.9%				5,358
Mexico
Materials – 2.8%
CEMEX S.A.B. de C.V. (A)		9,982		7,923
Mexichem S.A.B. de C.V.		3,969		8,869
				16,792
Total Mexico – 2.8%				16,792

COMMON STOCKS (Continued)	Shares		Value
Netherlands
Information Technology – 2.4%
Yandex N.V., Class A (A)		680	$	14,306
Total Netherlands – 2.4%				14,306
Philippines
Materials – 1.0%
Cemex Holdings Philippines, Inc. (A)		22,878		5,661
Total Philippines – 1.0%				5,661
Russia
Consumer Staples – 1.0%
Magnit PJSC GDR		135		5,641
Energy – 2.5%
PJSC LUKOIL ADR		304		14,797
Financials – 3.8%
Sberbank of Russia ADR		2,428		22,769
Total Russia – 7.3%				43,207
South Africa
Consumer Discretionary – 3.1%
Naspers Ltd., Class N		108		18,671
Total South Africa – 3.1%				18,671
South Korea
Consumer Discretionary – 1.1%
Hanssem Co. Ltd. Corp.		40		6,444
Consumer Staples – 1.5%
Cosmax, Inc.		67		9,186
Health Care – 4.0%
Celltrion, Inc.		96		9,266
Hugel, Inc. (A)		12		4,623
Vieworks Co. Ltd.		163		9,623
				23,512
Information Technology – 9.1%
Naver Corp.		16		13,101
Samsung Electronics Co. Ltd.		21		30,455
SK hynix, Inc.		289		10,541
				54,097
Materials – 0.5%
POSCO		15		2,999
Utilities – 1.4%
Korea Electric Power Corp.		171		8,361
Total South Korea – 17.6%				104,599

2016 SEMIANNUAL REPORT 29

CONSOLIDATED SCHEDULE OF INVESTMENTS IVY EMERGING MARKETS EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Taiwan
Consumer Discretionary – 1.5%
Eclat Textile Co. Ltd.		761	$	9,080
Information Technology – 7.4%
Advanced Semiconductor Engineering, Inc.		4,909		5,889
Hon Hai Precision Industry Co. Ltd.		2,305		5,808
Largan Precision Co. Ltd.		127		15,315
Taiwan Semiconductor Manufacturing Co. Ltd.		2,860		16,652
				43,664
Total Taiwan – 8.9%				52,744
Thailand
Consumer Discretionary – 1.6%
Minor International Public Co. Ltd.		8,551		9,624
Total Thailand – 1.6%				9,624

COMMON STOCKS (Continued)	Shares		Value
Turkey
Financials – 1.9%
Akbank T.A.S.		2,106	$	5,642
Turkiye Garanti Bankasi Anonim Sirketi		2,159		5,721
				11,363
Real Estate – 1.0%
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.		5,763		5,839
Total Turkey – 2.9%				17,202
United States
Energy – 1.2%
Halliburton Co.		165		7,410
Total United States – 1.2%				7,410
TOTAL COMMON STOCKS – 99.2%			$	588,529
(Cost: $458,902)

SHORT-TERM SECURITIES	Principal		Value
Master Note – 0.7%
Toyota Motor Credit Corp.
0.600%, 10-5-16 (B)	$	3,958	$	3,958
TOTAL SHORT-TERM SECURITIES – 0.7%			$	3,958
(Cost: $3,958)
TOTAL INVESTMENT SECURITIES – 99.9%			$	592,487
(Cost: $462,860)
CASH AND OTHER ASSETS, NET OF LIABILITIES (C) – 0.1%				620
NET ASSETS – 100.0%			$	593,107

Notes to Consolidated 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, 2016. Date shown represents the date that the variable rate resets.

(C) Cash of $2,860 is held in collateralized accounts for OTC derivatives collateral as governed by International Swaps and Derivatives Association, Inc. Master Agreements.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
U.S. Dollar		17,596	Malaysian Ringgit		72,100	10–26–16	Deutsche Bank AG	$	—	$	145
U.S. Dollar		19,245	South African Rand		262,240	10–26–16	Deutsche Bank AG		—		217
U.S. Dollar		17,471	Mexican Peso		343,800	10–26–16	Morgan Stanley International		213		—
								$	213	$	362

The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Expiration Month	Exercise Price		Premium Received		Value
YPF Sociedad Amonima ADR	UBS AG	Put		2,000	February 2017	$	28.00	$	2,010	$	(1,968	)

30 SEMIANNUAL REPORT 2016

CONSOLIDATED SCHEDULE OF INVESTMENTS IVY EMERGING MARKETS EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	588,529	$	—	$	—
Short-Term Securities		—		3,958		—
Total	$	588,529	$	3,958	$	—
Forward Foreign Currency Contracts	$	—	$	213	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	362	$	—
Written Options	$	—	$	1,968	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GDR = Global Depositary Receipts

OTC = Over the Counter

Market Sector Diversification

(as a % of net assets)
Information Technology	32.1%
Financials	15.4%
Consumer Discretionary	14.3%
Consumer Staples	11.1%
Energy	6.9%
Materials	5.6%
Health Care	5.5%
Real Estate	3.0%
Utilities	2.4%
Industrials	1.9%
Telecommunication Services	1.0%
Other+	0.8%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 31

PORTFOLIO HIGHLIGHTS IVY EUROPEAN OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	99.1%
Consumer Staples	15.1%
Health Care	14.5%
Industrials	12.3%
Consumer Discretionary	12.1%
Financials	11.3%
Information Technology	9.8%
Energy	9.4%
Materials	5.3%
Utilities	5.1%
Telecommunication Services	3.2%
Real Estate	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Lipper Rankings

Category: Lipper European Region Funds	Rank	Percentile
1 Year	106/157		68
3 Year	35/104		34
5 Year	60/91		66
10 Year	52/70		74

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	97.5%
France	26.7%
United Kingdom	25.8%
Netherlands	12.0%
Germany	8.6%
Switzerland	7.6%
Ireland	4.9%
Spain	3.9%
Other Europe	8.0%
North America	1.4%
Pacific Basin	0.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Shire plc	United Kingdom	Health Care	Pharmaceuticals
CRH plc	Ireland	Materials	Construction Materials
Renault S.A.	France	Consumer Discretionary	Automobile Manufacturers
NXP Semiconductors N.V.	Netherlands	Information Technology	Semiconductors
Thales	France	Industrials	Aerospace & Defense
Marine Harvest ASA	Norway	Consumer Staples	Packaged Foods & Meats
BNP Paribas S.A.	France	Financials	Diversified Banks
Roche Holdings AG, Genusscheine	Switzerland	Health Care	Pharmaceuticals
Royal Dutch Shell plc, Class A	United Kingdom	Energy	Integrated Oil & Gas
Prudential plc	United Kingdom	Financials	Life & Health Insurance

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

32 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY EUROPEAN OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
France
Consumer Discretionary – 6.3%
Compagnie Generale des Etablissements Michelin, Class B		30	$	3,350
LVMH Moet Hennessy – Louis Vuitton		7		1,147
Renault S.A.		64		5,292
Valeo S.A.		54		3,152
				12,941
Consumer Staples – 1.5%
Danone		14		1,033
Pernod Ricard		17		2,032
				3,065
Energy – 1.8%
Total S.A.		76		3,607
Financials – 3.9%
Axa S.A.		151		3,208
BNP Paribas S.A.		92		4,734
				7,942
Health Care – 0.2%
Innate Pharma S.A. (A)		42		521
Industrials – 7.2%
Compagnie de Saint-Gobain		63		2,717
Safran		31		2,264
Schneider Electric S.A.		33		2,315
Thales		54		4,961
Vinci		31		2,409
				14,666
Information Technology – 1.6%
Cap Gemini S.A.		33		3,189
Telecommunication Services – 2.0%
Orange S.A.		259		4,045
Utilities – 2.2%
ENGIE		152		2,361
Suez Environment Co.		124		2,040
				4,401
Total France – 26.7%				54,377
Germany
Health Care – 3.1%
Fresenius SE & Co. KGaA		31		2,465
Merck KGaA		36		3,881
				6,346
Industrials – 1.6%
KION Holding 1 GmbH		52		3,347
Information Technology – 2.9%
Infineon Technologies AG		186		3,313
SAP AG		28		2,509
				5,822

COMMON STOCKS (Continued)	Shares		Value
Real Estate – 1.0%
Deutsche Wohnen AG		55	$	2,010
Total Germany – 8.6%				17,525
Ireland
Consumer Staples – 1.5%
Glanbia plc		104		2,000
Kerry Group plc, Class A		14		1,136
				3,136
Industrials – 0.5%
Ryanair Holdings plc		78		1,068
Materials – 2.9%
CRH plc		176		5,879
Total Ireland – 4.9%				10,083
Isle Of Man
Information Technology – 1.0%
Paysafe Group plc (A)		344		1,987
Total Isle Of Man – 1.0%				1,987
Malaysia
Consumer Staples – 0.2%
PureCircle Ltd. (A)		107		382
Total Malaysia – 0.2%				382
Netherlands
Consumer Discretionary – 1.7%
Koninklijke Philips Electronics N.V., Ordinary Shares		119		3,528
Consumer Staples – 4.4%
Heineken N.V.		22		1,924
Koninklijke Ahold Delhaize N.V.		174		3,958
Unilever N.V., Certicaaten Van Aandelen		66		3,062
				8,944
Financials – 2.1%
ING Groep N.V., Certicaaten Van Aandelen		342		4,227
Information Technology – 2.5%
NXP Semiconductors N.V. (A)		49		5,006
Materials – 1.3%
Royal DSM Heerlen		40		2,712
Total Netherlands – 12.0%				24,417
Norway
Consumer Staples – 2.3%
Marine Harvest ASA		267		4,770

COMMON STOCKS (Continued)	Shares		Value
Energy – 1.0%
DNO International ASA (A)		1,913	$	1,940
Total Norway – 3.3%				6,710
Russia
Energy – 2.0%
PJSC LUKOIL ADR		84		4,096
Total Russia – 2.0%				4,096
Spain
Financials – 1.4%
Banco Bilbao Vizcaya Argentaria S.A.		497		3,008
Health Care – 1.1%
Grifols S.A. ADR		141		2,252
Utilities – 1.4%
Iberdrola S.A.		413		2,810
Total Spain – 3.9%				8,070
Sweden
Financials – 1.7%
Skandinaviska Enskilda Banken AB, Series A		354		3,561
Total Sweden – 1.7%				3,561
Switzerland
Consumer Staples – 1.7%
Nestle S.A., Registered Shares		44		3,449
Health Care – 3.5%
Lonza Group Ltd., Registered Shares		13		2,427
Roche Holdings AG, Genusscheine		19		4,730
				7,157
Information Technology – 1.3%
STMicroelectronics N.V.		321		2,619
Materials – 1.1%
Syngenta AG (A)		5		2,187
Total Switzerland – 7.6%				15,412
United Kingdom
Consumer Discretionary – 4.1%
GKN plc		607		2,519
UBM plc		352		3,254
WPP Group plc		109		2,565
				8,338
Consumer Staples – 3.5%
Diageo plc		72		2,073
Imperial Tobacco Group plc		80		4,125
Reckitt Benckiser Group plc		11		990
				7,188

2016 SEMIANNUAL REPORT 33

SCHEDULE OF INVESTMENTS IVY EUROPEAN OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Energy – 4.6%
Genel Energy plc (A)		1,400	$	1,742
Royal Dutch Shell plc, Class A		184		4,553
Tullow Oil plc		927		3,041
				9,336
Financials – 2.2%
Prudential plc		256		4,542
Health Care – 5.2%
AstraZeneca plc		53		3,448
Shire plc		111		7,182
				10,630
Industrials – 3.0%
Ashtead Group plc		192		3,165
BAE Systems plc		440		2,991
				6,156

COMMON STOCKS (Continued)	Shares		Value
Information Technology – 0.5%
JUST EAT plc (A)		133	$	922
Telecommunication Services – 1.2%
Vodafone Group plc		821		2,360
Utilities – 1.5%
National Grid plc		214		3,024
Total United Kingdom – 25.8%				52,496
United States
Health Care – 1.4%
Allergan plc (A)		12		2,860
Total United States – 1.4%				2,860
TOTAL COMMON STOCKS – 99.1%			$	201,976
(Cost: $189,820)

SHORT-TERM SECURITIES	Principal		Value
Master Note – 0.3%
Toyota Motor Credit Corp.
0.600%, 10–5–16 (B)	$	538	$	538
TOTAL SHORT-TERM SECURITIES – 0.3%			$	538
(Cost: $538)
TOTAL INVESTMENT SECURITIES – 99.4%			$	202,514
(Cost: $190,358)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.6%				1,204
NET ASSETS – 100.0%			$	203,718

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, 2016. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		9,253	U.S. Dollar		12,134	10–26–16	Citibank N.A.	$	136	$	—
Euro		24,945	U.S. Dollar		28,090	10–26–16	State Street Global Markets		38		—
								$	174	$	—

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	201,976	$	—	$	—
Short-Term Securities		—		538		—
Total	$	201,976	$	538	$	—
Forward Foreign Currency Contracts	$	—	$	174	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

34 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY EUROPEAN OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Market Sector Diversification

(as a % of net assets)
Consumer Staples	15.1%
Health Care	14.5%
Industrials	12.3%
Consumer Discretionary	12.1%
Financials	11.3%
Information Technology	9.8%
Energy	9.4%
Materials	5.3%
Utilities	5.1%
Telecommunication Services	3.2%
Real Estate	1.0%
Other+	0.9%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 35

PORTFOLIO HIGHLIGHTS IVY GLOBAL BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	5.6%
Utilities	2.2%
Energy	1.4%
Financials	1.0%
Information Technology	1.0%
Bonds	89.9%
Corporate Debt Securities	69.0%
United States Government and Government Agency Obligations	16.1%
Loans	2.5%
Other Government Securities	2.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	4.5%

Quality Weightings

Investment Grade	39.2%
AA	16.1%
A	2.3%
BBB	20.8%
Non-Investment Grade	50.7%
BB	24.0%
B	18.0%
CCC	3.3%
Non-rated	5.4%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities	10.1%

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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Lipper Rankings

Category: Lipper Global Income Funds	Rank	Percentile
1 Year	79/207		38
3 Year	135/192		70
5 Year	60/139		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	41.8%
United States	33.2%
Mexico	5.3%
Other North America	3.3%
Europe	26.3%
United Kingdom	8.3%
Luxembourg	6.2%
Netherlands	5.2%
Other Europe	6.6%
South America	18.0%
Brazil	5.4%
Chile	4.5%
Argentina	3.7%
Columbia	3.6%
Other South America	0.8%
Pacific Basin	5.5%
Bahamas/Caribbean	2.2%
Other	1.7%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	4.5%

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

36 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Brazil
Utilities – 1.3%
Alupar Investimento S.A.		212	$	1,045
Transmissora Alianca de Energia Eletrica S.A.		181		1,162
				2,207
Total Brazil – 1.3%				2,207
Chile
Utilities – 0.4%
Aguas Andinas S.A.		1,051		675
Total Chile – 0.4%				675
Panama
Financials – 1.0%
Banco Latinoamericano de Comercio Exterior S.A.		61		1,715
Total Panama – 1.0%				1,715
United Kingdom
Energy – 1.4%
Royal Dutch Shell plc, Class A		87		2,151
Seadrill Partners LLC		69		242
				2,393
Total United Kingdom – 1.4%				2,393
United States
Information Technology – 1.0%
Intel Corp.		46		1,741
Utilities – 0.5%
PPL Corp.		24		845
Total United States – 1.5%				2,586
TOTAL COMMON STOCKS – 5.6%			$	9,576
(Cost: $11,590)
CORPORATE DEBT SECURITIES	Principal
Argentina
Energy – 1.9%
Pan American Energy LLC:
7.875%, 5–7–21	$	500		536
7.875%, 5–7–21 (A)		1,000		1,072
YPF Sociedad Anonima:
8.875%, 12–19–18 (A)		1,300		1,440
8.500%, 3–23–21 (A)		250		279
				3,327
Industrials – 0.6%
Aeropuertos Argentina 2000 S.A.:
10.750%, 12–1–20		60		65
10.750%, 12–1–20 (A)		828		904
				969

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Utilities – 0.1%
Transportadora de Gas del Sur S.A.
7.875%, 5–14–17	$	188	$	189
Total Argentina – 2.6%				4,485
Brazil
Energy – 0.0%
Lancer Finance Co. (SPV) Ltd.
5.850%, 12–12–16 (A)(B)		252		—	*
Financials – 0.0%
Banco Cruzeiro do Sul S.A.
8.500%, 2–20–15 (A)(B)		1,500		30
Industrials – 2.0%
Embraer Overseas Ltd.
6.375%, 1–24–17		2,675		2,702
Odebrecht Drilling Norbe VII/IX Ltd.
6.350%, 6–30–21 (A)		2,119		646
				3,348
Materials – 2.1%
Suzano Trading Ltd.
5.875%, 1–23–21 (A)		2,500		2,612
Vale Overseas Ltd.:
4.625%, 9–15–20		500		514
6.250%, 8–10–26		425		444
				3,570
Total Brazil – 4.1%				6,948
British Virgin Islands
Energy – 0.5%
QGOG Atlantic/Alaskan Rigs Ltd.:
5.250%, 7–30–18 (A)		921		797
5.250%, 7–30–18		101		87
				884
Total British Virgin Islands – 0.5%				884
Canada
Financials – 0.7%
Bank of Montreal
1.800%, 7–31–18		1,100		1,108
Total Canada – 0.7%				1,108
Cayman Islands
Financials – 0.5%
Banco Bradesco S.A.
4.500%, 1–12–17 (A)		900		906
Industrials – 0.1%
Odebrecht Offshore Drilling Finance
6.750%, 10–1–22 (A)		428		79
Telecommunication Services – 0.7%
Sable International Finance Ltd.
6.875%, 8–1–22 (A)		1,200		1,245
Total Cayman Islands – 1.3%				2,230

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Chile
Industrials – 1.7%
Guanay Finance Ltd.
6.000%, 12–15–20 (A)	$	1,306	$	1,334
LATAM Airlines Group S.A.
7.250%, 6–9–20 (A)		1,500		1,537
				2,871
Materials – 2.4%
Inversiones CMPC S.A. (GTD by Empresas CMPC S.A.):
4.750%, 1–19–18 (A)		2,925		2,998
4.375%, 5–15–23 (A)		1,000		1,043
				4,041
Total Chile – 4.1%				6,912
Columbia
Energy – 1.2%
Empresas Publicas de Medellin E.S.P.
8.375%, 2–1–21 (C)	COP	6,300,000		2,106
Financials – 1.0%
Banco de Bogota S.A.
5.000%, 1–15–17 (A)	$	1,600		1,612
Utilities – 1.4%
Emgesa S.A. E.S.P.
8.750%, 1–25–21 (C)	COP	6,930,000		2,377
Total Columbia – 3.6%				6,095
France
Financials – 0.8%
Societe Generale S.A.
5.922%, 4–29–49 (A)	$	1,350		1,362
Total France – 0.8%				1,362
Hong Kong
Telecommunication Services – 0.6%
Hutchison Whampoa Ltd.
1.625%, 10–31–17 (A)		1,000		1,001
Total Hong Kong – 0.6%				1,001
India
Financials – 0.7%
ICICI Bank Ltd.
4.750%, 11–25–16 (A)		1,250		1,255
Industrials – 0.8%
Adani Ports and Special Economic Zone Ltd.
3.500%, 7–29–20 (A)		1,300		1,317
Utilities – 0.2%
Tata Electric Co.
8.500%, 8–19–17		250		260
Total India – 1.7%				2,832

2016 SEMIANNUAL REPORT 37

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Indonesia
Utilities – 1.5%
Majapahit Holding B.V.
7.750%, 10–17–16	$	2,500	$	2,500
Total Indonesia – 1.5%				2,500
Ireland
Energy – 0.5%
Novatek Finance Ltd.
7.750%, 2–21–17 (A)(C)	RUB	55,000		868
Financials – 0.8%
MTS International Funding Ltd.
5.000%, 5–30–23 (A)	$	750		783
VEB Finance Ltd.
5.375%, 2–13–17 (A)		600		606
				1,389
Industrials – 0.2%
Russian Railways via RZD Capital Ltd.
8.300%, 4–2–19 (C)	RUB	19,000		297
Telecommunication Services – 0.4%
Mobile TeleSystems OJSC
5.000%, 5–30–23	$	700		730
Total Ireland – 1.9%				3,284
Jamaica
Telecommunication Services – 0.4%
Digicel Group Ltd.
6.000%, 4–15–21 (A)		800		712
Total Jamaica – 0.4%				712
Luxembourg
Consumer Discretionary – 1.0%
Altice S.A.
7.625%, 2–15–25 (A)		1,700		1,749
Consumer Staples – 0.3%
Minerva Luxembourg S.A.
6.500%, 9–20–26 (A)		500		491
Financials – 3.2%
OJSC Russian Agricultural Bank
5.100%, 7–25–18 (A)		2,950		3,033
VTB Capital S.A.
6.000%, 4–12–17 (A)		2,335		2,378
				5,411
Information Technology – 1.7%
BC Luxco 1 S.A.:
7.375%, 1–29–20		550		571
7.375%, 1–29–20 (A)		2,200		2,282
				2,853
Total Luxembourg – 6.2%				10,504

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Mexico
Consumer Discretionary – 0.9%
Tenedora Nemak S.A. de C.V.
5.500%, 2–28–23 (A)	$	1,500	$	1,528
Consumer Staples – 0.6%
Sigma Alimentos S.A. de C.V.
5.625%, 4–14–18 (A)		1,000		1,055
Materials – 3.8%
C5 Capital (SPV) Ltd.
5.115%, 12–29–49 (A)(D)		1,600		1,288
CEMEX S.A.B. de C.V.:
6.500%, 12–10–19 (A)		3,600		3,816
7.250%, 1–15–21 (A)		1,200		1,278
				6,382
Total Mexico – 5.3%				8,965
Netherlands
Consumer Discretionary – 1.0%
VTR Finance B.V.
6.875%, 1–15–24 (A)		1,680		1,739
Consumer Staples – 0.6%
Marfrig Holdings (Europe) B.V.:
6.875%, 6–24–19 (A)		500		509
8.000%, 6–8–23 (A)		550		563
				1,072
Energy – 1.0%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.):
4.875%, 3–17–20		1,375		1,389
8.375%, 5–23–21		300		329
				1,718
Materials – 0.4%
Cimpor Financial Operations B.V. (GTD by InterCement Participacoes S.A. and InterCement Brasil S.A.)
5.750%, 7–17–24 (A)		850		727
Telecommunication Services – 0.3%
VimpleCom Holdings B.V.
9.000%, 2–13–18 (A)(C)	RUB	25,000		395
Utilities – 1.9%
Listrindo Capital B.V.
6.950%, 2–21–19 (A)	$	2,550		2,642
Majapahit Holding B.V.
7.750%, 1–20–20 (A)		500		575
				3,217
Total Netherlands – 5.2%				8,868

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Panama
Financials – 1.6%
Banco Latinoamericano de Comercio Exterior S.A.
3.750%, 4–4–17 (A)	$	2,700	$	2,717
Total Panama – 1.6%				2,717
Peru
Real Estate – 0.8%
InRetail Shopping Malls
5.250%, 10–10–21 (A)		1,300		1,352
Total Peru – 0.8%				1,352
Russia
Materials – 0.7%
Uralkali Finance Ltd.
3.723%, 4–30–18 (A)		1,100		1,097
Total Russia – 0.7%				1,097
Singapore
Consumer Staples – 2.3%
Olam International Ltd.:
5.750%, 9–20–17		1,150		1,174
7.500%, 8–12–20		2,500		2,790
				3,964
Telecommunication Services – 0.9%
TBG Global Pte. Ltd.
4.625%, 4–3–18 (A)		1,500		1,519
Total Singapore – 3.2%				5,483
Spain
Financials – 1.0%
Banco Bilbao Vizcaya Argentaria S.A.
9.000%, 5–29–49		1,600		1,638
Total Spain – 1.0%				1,638
United Arab Emirates
Financials – 1.2%
ICICI Bank Ltd.:
4.800%, 5–22–19 (A)		500		533
3.500%, 3–18–20 (A)		1,400		1,448
				1,981
Total United Arab Emirates – 1.2%				1,981
United Kingdom
Financials – 6.3%
Barclays plc
8.250%, 12–29–49		1,500		1,498
HSBC Holdings plc
5.625%, 12–29–49		1,200		1,185

38 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials (Continued)
Royal Bank of Scotland Group plc (The)
7.640%, 3–29–49	$	2,000	$	1,940
State Bank of India:
4.125%, 8–1–17 (A)		1,200		1,223
3.250%, 4–18–18 (A)		3,750		3,822
3.622%, 4–17–19 (A)		1,000		1,036
				10,704
Materials – 0.6%
Vedanta Resources plc
6.000%, 1–31–19 (A)		1,050		1,039
Total United Kingdom – 6.9%				11,743
United States
Consumer Discretionary – 0.8%
BakerCorp International, Inc.
8.250%, 6–1–19		725		585
Globo Comunicacoe e Participacoes S.A.
5.307%, 5–11–22 (A)		850		861
				1,446
Consumer Staples – 0.8%
SABMiller Holdings, Inc.
2.200%, 8–1–18 (A)		854		865
Simmons Foods, Inc.
7.875%, 10–1–21 (A)		475		474
				1,339
Energy – 1.0%
Brand Energy & Infrastructure Services
8.500%, 12–1–21 (A)		1,300		1,300
PBF Holding Co. LLC
8.250%, 2–15–20		425		438
				1,738
Financials – 1.5%
Citigroup, Inc.
8.400%, 4–29–49		1,250		1,372
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.
3.480%, 6–1–19 (A)		450		463
Wells Fargo & Co.
7.980%, 3–29–49		750		784
				2,619
Health Care – 0.4%
Fresenius U.S. Finance II, Inc.
4.500%, 1–15–23 (A)		675		704
Industrials – 1.0%
TransDigm, Inc. (GTD by TransDigm Group, Inc.)
6.000%, 7–15–22		1,607		1,695
Information Technology – 2.5%
Alliance Data Systems Corp.
5.250%, 12–1–17 (A)		3,300		3,366

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Information Technology (Continued)
Micron Technology, Inc.
5.875%, 2–15–22	$	850	$	872
				4,238
Materials – 0.7%
Hillman Group, Inc. (The)
6.375%, 7–15–22 (A)		1,218		1,142
Real Estate – 1.2%
Aircastle Ltd.
4.625%, 12–15–18		1,900		1,981
Telecommunication Services – 3.2%
American Tower Corp.
3.400%, 2–15–19		1,400		1,455
T-Mobile USA, Inc.
6.000%, 3–1–23		2,977		3,180
Verizon Communications, Inc.
2.625%, 2–21–20		697		717
				5,352
Total United States – 13.1%				22,254
TOTAL CORPORATE DEBT SECURITIES – 69.0%			$	116,955
(Cost: $123,589)
OTHER GOVERNMENT SECURITIES (E)
Argentina – 1.1%
Province of Buenos Aires
9.950%, 6–9–21		1,596		1,836
Russia – 0.7%
Russian Federation
3.500%, 1–16–19 (A)		1,200		1,225
Supranational – 0.5%
Central American Bank for Economic Integration
3.875%, 2–9–17 (A)		800		806
TOTAL OTHER GOVERNMENT SECURITIES – 2.3%			$	3,867
(Cost: $3,505)
LOANS (D)
United States
Energy – 0.1%
Empresas ICA S.A.
9.300%, 6–20–17 (B)		942		75
Industrials – 1.5%
TransDigm, Inc.:
3.750%, 2–28–20		486		485
3.838%, 2–28–20		2,128		2,127
				2,612

LOANS (D) (Continued)	Principal			Value
Information Technology – 0.4%
Magic Newco LLC
5.000%, 12–12–18	$	738		$	739
Materials – 0.5%
BakerCorp International, Inc.
4.250%, 2–7–20		882			756
Total United States – 2.5%					4,182
					4,182
TOTAL LOANS – 2.5%				$	4,182
(Cost: $5,160)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
United States – 0.1%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO:
4.000%, 7–15–23 (F)		—	*		—	*
4.000%, 2–15–24 (F)		75			3
4.000%, 4–15–24 (F)		138			11
5.500%, 1–15–38 (F)		326			60
Federal National Mortgage Association Fixed Rate Pass-Through Certificates
5.000%, 3–1–22		41			43
					117
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.1%				$	117
(Cost: $1,229)
UNITED STATES GOVERNMENT OBLIGATIONS
United States – 16.0%
U.S. Treasury Bonds
2.250%, 11–15–25		1,800			1,901
U.S. Treasury Notes:
0.875%, 2–28–17		9,000			9,019
3.500%, 5–15–20		1,980			2,154
2.625%, 11–15–20		4,500			4,777
2.125%, 8–15–21		3,500			3,655
1.750%, 5–15–22		5,475			5,613
					27,119
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 16.0%				$	27,119
(Cost: $26,280)
SHORT-TERM SECURITIES
Commercial Paper (G) – 2.3%
J.M. Smucker Co. (The)
0.700%, 10–3–16		3,987			3,987

2016 SEMIANNUAL REPORT 39

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 1.0%
Toyota Motor Credit Corp.
0.600%, 10–5–16 (H)	$	1,627	$	1,627
TOTAL SHORT-TERM SECURITIES – 3.3%			$	5,614
(Cost: $5,614)
TOTAL INVESTMENT SECURITIES – 98.8%			$	167,430
(Cost: $176,967)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.2%				2,001
NET ASSETS – 100.0%			$	169,431

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. At September 30, 2016 the total value of these securities amounted to $79,478 or 46.9% of net assets.

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

(C) Principal amounts are denominated in the indicated foreign currency, where applicable (COP - Columbian Peso and RUB - Russian Ruble).

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.

(E) Other Government Securities may include emerging markets sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities.

(F) Interest-only security. Amount shown as principal represents notional amount for computation of interest.

(G) Rate shown is the yield to maturity at September 30, 2016.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		1,500	U.S. Dollar		1,968	10–26–16	Barclays Capital, Inc.	$	22	$	—

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	9,576	$	—	$	—
Corporate Debt Securities		—		116,955		—
Other Government Securities		—		3,867		—
Loans		—		4,107		75
United States Government Agency Obligations		—		117		—
United States Government Obligations		—		27,119		—
Short-Term Securities		—		5,614		—
Total	$	9,576	$	157,779	$	75
Forward Foreign Currency Contracts	$	—	$	22	$	—

40 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

During the period ended September 30, 2016, securities totaling $755 were transferred from Level 3 to Level 2 due to increased availability of observable market data due to increased market activity or information for these securities. Transfers out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

REMIC = Real Estate Mortgage Investment Conduit

Market Sector Diversification

(as a % of net assets)
Financials	20.3%
United States Government and Government Agency Obligations	16.1%
Materials	11.2%
Industrials	7.9%
Energy	7.6%
Utilities	7.3%
Telecommunication Services	6.5%
Information Technology	5.6%
Consumer Staples	4.6%
Consumer Discretionary	3.7%
Other Government Securities	2.3%
Real Estate	2.0%
Health Care	0.4%
Other+	4.5%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 41

PORTFOLIO HIGHLIGHTS IVY GLOBAL EQUITY INCOME FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	98.8%
Health Care	15.9%
Consumer Staples	15.2%
Telecommunication Services	13.4%
Energy	12.9%
Consumer Discretionary	9.4%
Industrials	7.6%
Utilities	6.4%
Financials	6.2%
Information Technology	6.1%
Materials	4.8%
Real Estate	0.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.2%

Lipper Rankings

Category: Lipper Global Equity Income Funds	Rank	Percentile
1 Year	155/170		91
3 Year	82/143		57

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	53.2%
United Kingdom	20.3%
France	10.2%
Netherlands	4.8%
Spain	4.6%
Norway	3.6%
Other Europe	9.7%
North America	35.7%
United States	32.5%
Other North America	3.2%
Pacific Basin	7.5%
Japan	3.9%
Other Pacific Basin	3.6%
Other	2.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.2%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Pfizer, Inc.	United States	Health Care	Pharmaceuticals
AT&T, Inc.	United States	Telecommunication Services	Integrated Telecommunication Services
Johnson & Johnson	United States	Health Care	Pharmaceuticals
Merck & Co., Inc.	United States	Health Care	Pharmaceuticals
Total S.A.	France	Energy	Integrated Oil & Gas
Marine Harvest ASA	Norway	Consumer Staples	Packaged Foods & Meats
Royal Dutch Shell plc, Class A	United Kingdom	Energy	Integrated Oil & Gas
Microsoft Corp.	United States	Information Technology	Systems Software
Chevron Corp.	United States	Energy	Integrated Oil & Gas
QUALCOMM, Inc.	United States	Information Technology	Semiconductors

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

42 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL EQUITY INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Materials – 1.0%
Amcor Ltd.		314	$	3,641
Telecommunication Services – 1.1%
Telstra Corp. Ltd. ADR		943		3,738
Total Australia – 2.1%				7,379
Canada
Energy – 1.4%
Inter Pipeline Ltd.		239		5,050
Financials – 1.8%
Bank of Montreal		94		6,163
Total Canada – 3.2%				11,213
China
Consumer Discretionary – 1.5%
ANTA Sports Products Ltd.		1,921		5,212
Total China – 1.5%				5,212
France
Energy – 2.8%
Total S.A.		210		9,935
Industrials – 2.7%
Safran		49		3,498
Schneider Electric S.A.		27		1,896
Vinci		51		3,915
				9,309
Real Estate – 0.9%
Unibail-Rodamco		12		3,179
Telecommunication Services – 1.9%
Orange S.A.		419		6,552
Utilities – 1.9%
ENGIE		442		6,843
Total France – 10.2%				35,818
Ireland
Materials – 1.3%
CRH plc		135		4,511
Total Ireland – 1.3%				4,511
Israel
Health Care – 1.3%
Teva Pharmaceutical Industries Ltd. ADR		101		4,640
Telecommunication Services – 1.1%
Bezeq – Israel Telecommunication Corp. Ltd. (The)		2,037		3,844
Total Israel – 2.4%				8,484

COMMON STOCKS (Continued)	Shares		Value
Italy
Energy – 1.7%
Eni S.p.A.		405	$	5,837
Industrials – 0.9%
Atlantia S.p.A.		127		3,224
Total Italy – 2.6%				9,061
Japan
Consumer Discretionary – 2.7%
Bridgestone Corp.		121		4,421
Sekisui House Ltd.		308		5,189
				9,610
Telecommunication Services – 1.2%
Nippon Telegraph and Telephone Corp.		91		4,141
Total Japan – 3.9%				13,751
Netherlands
Consumer Discretionary – 0.5%
Koninklijke Philips Electronics N.V., Ordinary Shares		65		1,913
Consumer Staples – 2.0%
Unilever N.V., Certicaaten Van Aandelen		152		7,003
Financials – 1.2%
ING Groep N.V., Certicaaten Van Aandelen		355		4,383
Materials – 1.1%
Royal DSM Heerlen		57		3,833
Total Netherlands – 4.8%				17,132
Norway
Consumer Staples – 2.6%
Marine Harvest ASA		503		9,012
Telecommunication Services – 1.0%
Telenor ASA		211		3,620
Total Norway – 3.6%				12,632
Russia
Energy – 2.0%
PJSC LUKOIL ADR		148		7,192
Total Russia – 2.0%				7,192
Spain
Financials – 1.5%
Banco Bilbao Vizcaya Argentaria S.A.		855		5,169
Utilities – 3.1%
Enagas S.A.		128		3,857

COMMON STOCKS (Continued)	Shares		Value
Utilities (Continued)
Iberdrola S.A.		1,037	$	7,053
				10,910
Total Spain – 4.6%				16,079
Sweden
Telecommunication Services – 1.0%
TeliaSonera AB		831		3,720
Total Sweden – 1.0%				3,720
Switzerland
Consumer Staples – 1.4%
Nestle S.A., Registered Shares		62		4,885
Health Care – 1.4%
Roche Holdings AG, Genusscheine		20		4,865
Total Switzerland – 2.8%				9,750
United Kingdom
Consumer Discretionary – 3.8%
Bellway plc		121		3,700
UBM plc		559		5,174
WPP Group plc		188		4,427
				13,301
Consumer Staples – 4.6%
British American Tobacco plc		82		5,236
Diageo plc		151		4,329
Imperial Tobacco Group plc		132		6,789
				16,354
Energy – 2.5%
Royal Dutch Shell plc, Class A		359		8,899
Financials – 1.7%
HSBC Holdings plc		578		4,333
Prudential plc		99		1,759
				6,092
Health Care – 2.0%
AstraZeneca plc		106		6,894
Industrials – 1.5%
BAE Systems plc		752		5,106
Telecommunication Services – 2.8%
BT Group plc		850		4,287
Vodafone Group plc		1,882		5,408
				9,695
Utilities – 1.4%
National Grid plc		355		5,020
Total United Kingdom – 20.3%				71,361

2016 SEMIANNUAL REPORT 43

SCHEDULE OF INVESTMENTS IVY GLOBAL EQUITY INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
United States
Consumer Discretionary – 0.9%
Omnicom Group, Inc.		38	$	3,221
Consumer Staples – 4.6%
Altria Group, Inc.		72		4,572
Philip Morris International, Inc.		50		4,824
Procter & Gamble Co. (The)		76		6,865
				16,261
Energy – 2.5%
Chevron Corp.		83		8,574
Health Care – 11.2%
Eli Lilly and Co.		58		4,648
Johnson & Johnson		96		11,284
Merck & Co., Inc.		171		10,697
Pfizer, Inc.		380		12,860
				39,489
Industrials – 2.5%
Eaton Corp.		63		4,107
Lockheed Martin Corp.		20		4,749
				8,856

COMMON STOCKS (Continued)	Shares		Value
Information Technology – 6.1%
Cisco Systems, Inc.		162	$	5,127
Microsoft Corp.		154		8,866
QUALCOMM, Inc.		110		7,562
				21,555
Materials – 1.4%
International Paper Co.		105		5,031
Telecommunication Services – 3.3%
AT&T, Inc.		287		11,670
Total United States – 32.5%				114,657
TOTAL COMMON STOCKS – 98.8%			$	347,952
(Cost: $331,579)
SHORT-TERM SECURITIES	Principal
Commercial Paper (A) – 3.0%
Campbell Soup Co.
0.590%, 10–3–16	$	2,833		2,833

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (A) (Continued)
NBCUniversal Enterprise, Inc.
0.790%, 10–19–16	$	4,000	$	3,998
Wisconsin Electric Power Co.
0.450%, 10–3–16		3,652		3,652
				10,483
Master Note – 0.2%
Toyota Motor Credit Corp.
0.600%, 10–5–16 (B)		694		694
TOTAL SHORT-TERM SECURITIES – 3.2%			$	11,177
(Cost: $11,178)
TOTAL INVESTMENT SECURITIES – 102.0%			$	359,129
(Cost: $342,757)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.0)%				(7,047	)
NET ASSETS – 100.0%			$	352,082

Notes to Schedule of Investments

(A) Rate shown is the yield to maturity at September 30, 2016.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date		Counterparty	Unrealized Appreciation		Unrealized Depreciation
Australian Dollar		9,073	U.S. Dollar		6,941		10–26–16	Citibank N.A.	$	2	$	—
British Pound		20,804	U.S. Dollar		27,284		10–26–16	Citibank N.A.		307		—
Euro		39,595	U.S. Dollar		44,587		10–26–16	State Street Global Markets		60		—
									$	369	$	—

44 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL EQUITY INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	33,257	$	—	$	—
Consumer Staples		53,515		—		—
Energy		45,487		—		—
Financials		21,807		—		—
Health Care		55,888		—		—
Industrials		26,495		—		—
Information Technology		21,555		—		—
Materials		17,016		—		—
Real Estate		3,179		—		—
Telecommunication Services		43,136		3,844		—
Utilities		22,773		—		—
Total Common Stocks	$	344,108	$	3,844	$	—
Short-Term Securities		—		11,177		—
Total	$	344,108	$	15,021	$	—
Forward Foreign Currency Contracts	$	—	$	369	$	—

During the period ended September 30, 2016, securities totaling $4,693 were transferred from Level 1 to Level 2 due to the lack of observable market data due to decreased market activity or information for these securities. Transfers out of Level 1 represent the values as of the beginning of the reporting period.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Health Care	15.9%
Consumer Staples	15.2%
Telecommunication Services	13.4%
Energy	12.9%
Consumer Discretionary	9.4%
Industrials	7.6%
Utilities	6.4%
Financials	6.2%
Information Technology	6.1%
Materials	4.8%
Real Estate	0.9%
Other+	1.2%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 45

PORTFOLIO HIGHLIGHTS IVY GLOBAL GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	92.3%
Information Technology	29.4%
Health Care	18.4%
Consumer Discretionary	17.9%
Industrials	10.8%
Consumer Staples	9.4%
Energy	5.4%
Financials	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	7.7%

Lipper Rankings

Category: Lipper Global Large-Cap Growth Funds	Rank	Percentile
1 Year	97/122		79
3 Year	93/103		90
5 Year	65/70		92
10 Year	42/51		81

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	58.0%
United States	55.8%
Other North America	2.2%
Europe	22.3%
Germany	5.3%
United Kingdom	4.3%
Netherlands	4.2%
France	3.9%
Other Europe	4.6%
Pacific Basin	8.3%
China	7.1%
Other Pacific Basin	1.2%
Other	2.1%
South America	1.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	7.7%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Amazon.com, In.	United States	Consumer Discretionary	Internet & Direct Marketing Retail
Visa, Inc., Class A	United States	Information Technology	Data Processing & Outsourced Services
Alphabet, Inc., Class C	United States	Information Technology	Internet Software & Services
MasterCard, Inc., Class A	United States	Information Technology	Data Processing & Outsourced Services
Allergan plc	United States	Health Care	Pharmaceuticals
Alibaba Group Holding Ltd. ADR	China	Information Technology	Internet Software & Services
Fresenius SE & Co. KGaA	Germany	Health Care	Health Care Services
Halliburton Co.	United States	Energy	Oil & Gas Equipment & Services
J.B. Hunt Transport Services, Inc.	United States	Industrials	Trucking
Facebook, Inc., Class A	United States	Information Technology	Internet Software & Services

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

46 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Belgium
Consumer Staples – 2.4%
InBev N.V.		90	$	11,823
Total Belgium – 2.4%				11,823
Brazil
Information Technology – 1.6%
MercadoLibre, Inc.		41		7,564
Total Brazil – 1.6%				7,564
Canada
Industrials – 1.0%
Canadian Pacific Railway Ltd.		32		4,955
Total Canada – 1.0%				4,955
China
Consumer Discretionary – 1.3%
JD.com, Inc. ADR (A)		239		6,236
Information Technology – 5.8%
Alibaba Group Holding Ltd. ADR (A)		151		15,968
Tencent Holdings Ltd.		442		12,132
				28,100
Total China – 7.1%				34,336
France
Consumer Staples – 1.0%
Pernod Ricard		41		4,897
Industrials – 2.9%
European Aeronautic Defence and Space Co.		140		8,478
Safran		76		5,488
				13,966
Total France – 3.9%				18,863
Germany
Consumer Discretionary – 1.5%
Continental AG		34		7,171
Health Care – 3.1%
Fresenius SE & Co. KGaA		185		14,777
Industrials – 0.7%
Siemens AG		31		3,643
Total Germany – 5.3%				25,591
Ireland
Health Care – 1.5%
Medtronic plc		85		7,360
Total Ireland – 1.5%				7,360

COMMON STOCKS (Continued)	Shares		Value
Israel
Health Care – 2.1%
Teva Pharmaceutical Industries Ltd. ADR		220	$	10,120
Total Israel – 2.1%				10,120
Mexico
Consumer Staples – 1.2%
Wal-Mart de Mexico S.A.B. de C.V.		2,686		5,881
Total Mexico – 1.2%				5,881
Netherlands
Consumer Discretionary – 1.1%
Koninklijke Philips Electronics N.V., Ordinary Shares		169		4,999
Information Technology – 3.1%
ASML Holding N.V., NY Registry Shares		59		6,498
NXP Semiconductors N.V. (A)		84		8,593
				15,091
Total Netherlands – 4.2%				20,090
South Korea
Information Technology – 1.2%
Samsung Electronics Co. Ltd.		4		5,615
Total South Korea – 1.2%				5,615
Switzerland
Industrials – 0.7%
Adecco S.A.		62		3,486
Total Switzerland – 0.7%				3,486
United Kingdom
Consumer Discretionary – 1.0%
Compass Group plc		249		4,815
Consumer Staples – 1.8%
Coca-Cola European Partners plc		215		8,585
Financials – 1.0%
Prudential plc		266		4,703
Health Care – 0.5%
Shire plc		39		2,498
Total United Kingdom – 4.3%				20,601
United States
Consumer Discretionary – 13.0%
Amazon.com, Inc. (A)		34		28,209
Home Depot, Inc. (The)		70		9,071
Johnson Controls, Inc.		237		11,010
Limited Brands, Inc.		102		7,252

COMMON STOCKS (Continued)	Shares		Value
Consumer Discretionary (Continued)
Newell Rubbermaid, Inc.		139	$	7,335
				62,877
Consumer Staples – 3.0%
Coca-Cola Co. (The)		169		7,171
Kraft Foods Group, Inc.		83		7,385
				14,556
Energy – 5.4%
EOG Resources, Inc.		50		4,840
Halliburton Co.		309		13,883
Schlumberger Ltd.		91		7,167
				25,890
Health Care – 11.2%
Allergan plc (A)		74		17,068
Biogen, Inc. (A)		20		6,355
Bristol-Myers Squibb Co.		42		2,282
Gilead Sciences, Inc.		69		5,478
HCA Holdings, Inc. (A)		165		12,512
Thermo Fisher Scientific, Inc.		67		10,630
				54,325
Industrials – 5.5%
J.B. Hunt Transport Services, Inc.		167		13,526
Kansas City Southern		45		4,165
Rockwell Collins, Inc.		104		8,737
				26,428
Information Technology – 17.7%
Alphabet, Inc., Class C (A)		27		21,292
Cognizant Technology Solutions Corp., Class A (A)		164		7,826
Facebook, Inc., Class A (A)		103		13,224
MasterCard, Inc., Class A		181		18,456
Visa, Inc., Class A		302		24,985
				85,783
Total United States – 55.8%				269,859
TOTAL COMMON STOCKS – 92.3%			$	446,144
(Cost: $377,415)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 6.5%
CVS Health Corp.
0.700%, 10–3–16	$	7,359		7,359
Kroger Co. (The)
0.630%, 10–3–16		10,000		9,999
McCormick & Co., Inc.
0.500%, 10–3–16		5,000		5,000
Northern Illinois Gas Co.
0.770%, 10–13–16		5,000		4,999
Wisconsin Gas LLC
0.460%, 10–7–16		4,000		3,999
				31,356

2016 SEMIANNUAL REPORT 47

SCHEDULE OF INVESTMENTS IVY GLOBAL GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 1.0%
Toyota Motor Credit Corp.
0.600%, 10–5–16 (C)	$	4,763	$	4,763
TOTAL SHORT-TERM SECURITIES – 7.5%			$	36,119
(Cost: $36,120)
TOTAL INVESTMENT SECURITIES – 99.8%			$	482,263
(Cost: $413,535)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2%				891
NET ASSETS – 100.0%			$	483,154

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, 2016.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
Euro		32,600	U.S. Dollar		36,713	10–26–16	Citibank N.A.	$	53	$	—

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	446,144	$	—	$	—
Short-Term Securities		—		36,119		—
Total	$	446,144	$	36,119	$	—
Forward Foreign Currency Contracts	$	—	$	53	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

48 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Market Sector Diversification

(as a % of net assets)
Information Technology	29.4%
Health Care	18.4%
Consumer Discretionary	17.9%
Industrials	10.8%
Consumer Staples	9.4%
Energy	5.4%
Financials	1.0%
Other+	7.7%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 49

PORTFOLIO HIGHLIGHTS IVY GLOBAL INCOME ALLOCATION FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	57.0%
Financials	14.0%
Industrials	8.9%
Consumer Discretionary	7.7%
Consumer Staples	7.5%
Health Care	4.1%
Information Technology	3.7%
Energy	3.2%
Telecommunication Services	3.0%
Materials	1.9%
Utilities	1.5%
Real Estate	1.5%
Bonds	40.7%
Corporate Debt Securities	32.3%
Loans	3.8%
United States Government and Government Agency Obligations	2.9%
Other Government Securities	1.7%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.3%

Lipper Rankings

Category: Lipper Flexible Portfolio Funds	Rank	Percentile
1 Year	227/604		38
3 Year	271/443		62
5 Year	218/324		68
10 Year	104/140		74

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	45.0%
United States	40.6%
Canada	3.8%
Other North America	0.6%
Europe	39.1%
United Kingdom	10.8%
Spain	6.4%
France	3.8%
Other Europe	18.1%
Pacific Basin	9.7%
Australia	6.4%
Other Pacific Basin	3.3%
South America	2.5%
Other	1.3%
Bahamas/Caribbean	0.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.3%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Ferrovial S.A.	Spain	Industrials	Construction & Engineering
Sampo plc, A Shares	Finland	Financials	Multi-Line Insurance
Ares Capital Corp.	United States	Financials	Asset Management & Custody Banks
ProSiebenSat. 1 Media SE	Germany	Consumer Discretionary	Broadcasting
Caltex Australia Ltd.	Australia	Energy	Oil & Gas Refining & Marketing
Communications Sales & Leasing, Inc.	United States	Real Estate	Specialized REITs
Atlantica Yield plc	Spain	Utilities	Independent Power Producers & Energy Traders
Kraft Foods Group, Inc.	United States	Consumer Staples	Packaged Foods & Meats
National Australia Bank Ltd.	Australia	Financials	Diversified Banks
Limited Brands, Inc.	United States	Consumer Discretionary	Apparel Retail

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

50 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL INCOME ALLOCATION FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Energy – 1.5%
Caltex Australia Ltd.		425	$	11,141
Financials – 1.5%
National Australia Bank Ltd.		500		10,665
Industrials – 0.4%
Spotless Group Holdings Ltd.		3,930		3,218
Materials – 1.9%
Amcor Ltd.		483		5,604
Orora Ltd.		3,500		8,438
				14,042
Total Australia – 5.3%				39,066
Belgium
Consumer Staples – 1.2%
Anheuser-Busch InBev S.A. ADR		68		8,936
Total Belgium – 1.2%				8,936
Canada
Energy – 1.7%
Inter Pipeline Ltd.		360		7,601
Vermilion Energy, Inc.		129		4,998
				12,599
Total Canada – 1.7%				12,599
Denmark
Financials – 1.1%
Danske Bank A.S.		270		7,879
Total Denmark – 1.1%				7,879
Finland
Financials – 1.8%
Sampo plc, A Shares		300		13,345
Information Technology – 1.2%
Nokia Corp., Series A ADR		1,600		9,264
Total Finland – 3.0%				22,609
France
Financials – 0.9%
Axa S.A.		318		6,767
Industrials – 1.0%
Compagnie de Saint-Gobain		163		7,032
Telecommunication Services – 0.8%
Orange S.A.		387		6,057
Total France – 2.7%				19,856

COMMON STOCKS (Continued)	Shares		Value
Germany
Consumer Discretionary – 1.6%
ProSiebenSat. 1 Media SE		280	$	11,990
Industrials – 1.1%
Deutsche Post AG		250		7,813
Total Germany – 2.7%				19,803
Israel
Health Care – 0.8%
Teva Pharmaceutical Industries Ltd. ADR		136		6,257
Total Israel – 0.8%				6,257
Italy
Financials – 1.1%
Banca Intesa S.p.A.		3,000		6,652
Intesa Sanpaolo S.p.A.		889		1,862
				8,514
Total Italy – 1.1%				8,514
Japan
Consumer Discretionary – 1.0%
Bridgestone Corp.		200		7,309
Total Japan – 1.0%				7,309
New Zealand
Consumer Discretionary – 0.8%
SKYCITY Entertainment Group Ltd.		1,779		5,933
Total New Zealand – 0.8%				5,933
Singapore
Consumer Discretionary – 0.4%
Asian Pay Television Trust		8,571		3,205
Telecommunication Services – 1.0%
Singapore Telecommunications Ltd.		2,450		7,133
Total Singapore – 1.4%				10,338
Spain
Industrials – 3.0%
ACS Actividades de Construccion y Servicios S.A.		253		7,639
Ferrovial S.A.		691		14,713
				22,352
Utilities – 1.5%
Atlantica Yield plc		567		10,785
Total Spain – 4.5%				33,137

COMMON STOCKS (Continued)	Shares		Value
Switzerland
Consumer Staples – 1.1%
Nestle S.A., Registered Shares		100	$	7,879
Industrials – 1.3%
Adecco S.A.		170		9,572
Total Switzerland – 2.4%				17,451
United Kingdom
Consumer Discretionary – 1.1%
Taylor Wimpey plc		4,080		8,150
Consumer Staples – 1.2%
Imperial Tobacco Group plc		170		8,755
Financials – 2.2%
Legal & General Group plc		2,991		8,478
St. James’s Place plc		625		7,680
				16,158
Industrials – 1.0%
BAE Systems plc		1,100		7,471
Total United Kingdom – 5.5%				40,534
United States
Consumer Discretionary – 2.8%
Limited Brands, Inc.		150		10,616
McDonalds Corp.		90		10,382
				20,998
Consumer Staples – 4.0%
Kraft Foods Group, Inc.		120		10,741
Philip Morris International, Inc.		88		8,533
Procter & Gamble Co. (The)		115		10,321
				29,595
Financials – 3.6%
American Capital Agency Corp.		400		7,816
Blackstone Mortgage Trust, Inc., Class A		340		10,005
Fortress Transportation and Infrastructure Investors LLC		698		8,737
				26,558
Health Care – 1.8%
Bristol-Myers Squibb Co.		106		5,742
Pfizer, Inc.		220		7,451
				13,193
Industrials – 1.1%
Lockheed Martin Corp.		35		8,390
Information Technology – 2.5%
Paychex, Inc.		174		10,086
Texas Instruments, Inc.		120		8,422
				18,508

2016 SEMIANNUAL REPORT 51

SCHEDULE OF INVESTMENTS IVY GLOBAL INCOME ALLOCATION FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Real Estate – 1.5%
Communications Sales & Leasing, Inc.		350	$	10,994
Total United States – 17.3%				128,236
TOTAL COMMON STOCKS – 52.5%			$	388,457
(Cost: $389,838)
INVESTMENT FUNDS
United States – 1.8%
Ares Capital Corp.		861		13,341
TOTAL INVESTMENT FUNDS – 1.8%			$	13,341
(Cost: $14,861)
PREFERRED STOCKS
Israel
Health Care – 0.5%
Teva Pharmaceutical Industries Ltd., Convertible, 7.000%		5		4,066
Total Israel – 0.5%				4,066
United States
Health Care – 1.0%
Allergan plc, Convertible Series A, 5.500%		9		7,388
Telecommunication Services – 1.2%
Frontier Communications Corp., Convertible Series A, 11.125%		104		8,694
Total United States – 2.2%				16,082
TOTAL PREFERRED STOCKS – 2.7%			$	20,148
(Cost: $22,839)
CORPORATE DEBT SECURITIES	Principal
Argentina
Industrials – 0.7%
Aeropuertos Argentina 2000 S.A.:
10.750%, 12–1–20	$	3,868		4,221
10.750%, 12–1–20 (A)		595		649
				4,870
Total Argentina – 0.7%				4,870
Australia
Materials – 0.9%
BlueScope Steel (Finance) Ltd. and BlueScope Steel Finance (USA) LLC
7.125%, 5–1–18 (A)		1,028		1,050

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Materials (Continued)
FMG Resources Pty Ltd.
6.875%, 4–1–22 (A)	$	5,750	$	5,950
				7,000
Total Australia – 0.9%				7,000
Barbados
Consumer Discretionary – 0.1%
Columbus International, Inc.
7.375%, 3–30–21 (A)		1,000		1,061
Total Barbados – 0.1%				1,061
Brazil
Consumer Staples – 0.3%
AmBev International Finance Co. Ltd.
9.500%, 7–24–17 (B)(C)	BRL	7,500		2,295
Materials – 0.6%
Vale Overseas Ltd.
6.250%, 8–10–26	$	4,375		4,570
Total Brazil – 0.9%				6,865
Canada
Information Technology – 0.9%
Kronos Acquisition Holdings, Inc.
9.000%, 8–15–23 (A)		6,250		6,441
Materials – 0.5%
St. Mary’s Cement, Inc.
5.750%, 1–28–27 (A)		4,000		3,944
Total Canada – 1.4%				10,385
Columbia
Energy – 0.2%
Empresas Publicas de Medellin E.S.P.
8.375%, 2–1–21 (B)	COP	3,888,000		1,300
Total Columbia – 0.2%				1,300
France
Financials – 1.1%
Societe Generale Group
7.375%, 12–29–49 (A)	$	1,000		980
Societe Generale S.A.
8.250%, 11–29–49		7,000		7,096
				8,076
Total France – 1.1%				8,076
Ireland
Energy – 0.1%
Novatek Finance Ltd.
7.750%, 2–21–17 (A)(B)	RUB	25,000		395

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials – 0.7%
Aquarius + Investments plc (GTD by Swiss Reinsurance Co. Ltd.)
6.375%, 9–1–24	$	5,000	$	5,233
Industrials – 0.1%
Russian Railways via RZD Capital Ltd.
8.300%, 4–2–19 (B)	RUB	50,000		782
Total Ireland – 0.9%				6,410
Italy
Financials – 0.4%
Intesa Sanpaolo S.p.A.
7.700%, 12–29–49 (A)	$	3,000		2,625
Total Italy – 0.4%				2,625
Luxembourg
Consumer Discretionary – 1.6%
Altice Financing S.A.
7.500%, 5–15–26 (A)		2,612		2,720
Altice S.A.
7.625%, 2–15–25 (A)		9,188		9,452
				12,172
Information Technology – 1.0%
BC Luxco 1 S.A.
7.375%, 1–29–20 (A)		7,000		7,262
Total Luxembourg – 2.6%				19,434
Mexico
Financials – 0.3%
Unifin Financiera S.A.B. de C.V. SOFOM E.N.R.
7.250%, 9–27–23 (A)		2,150		2,146
Telecommunication Services – 0.3%
America Movil S.A.B. de C.V.
6.450%, 12–5–22 (B)	MXN	47,000		2,361
Total Mexico – 0.6%				4,507
Netherlands
Energy – 1.6%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.)
8.750%, 5–23–26	$	11,000		12,155
Materials – 0.6%
Constellium N.V.
8.000%, 1–15–23 (A)		4,253		4,285
Telecommunication Services – 0.1%
VimpleCom Holdings B.V.
9.000%, 2–13–18 (A)(B)	RUB	50,000		790
Total Netherlands – 2.3%				17,230

52 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL INCOME ALLOCATION FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Norway
Energy – 0.4%
Det norske oljeselskap ASA
10.250%, 5–27–22 (A)	$	2,600	$	2,886
Total Norway – 0.4%				2,886
Singapore
Consumer Staples – 0.0%
Olam International Ltd.
6.000%, 8–10–18 (B)	SGD	250		188
Total Singapore – 0.0%				188
Spain
Financials – 1.2%
Banco Bilbao Vizcaya Argentaria S.A.
9.000%, 5–29–49	$	8,800		9,012
Industrials – 0.7%
ACI Airport Sudamerica S.A.
6.875%, 11–29–32 (A)		5,000		4,862
Total Spain – 1.9%				13,874
United Kingdom
Financials – 5.3%
Barclays plc
8.250%, 12–29–49		11,085		11,071
Lloyds Banking Group plc
7.500%, 4–30–49		5,000		5,164
Royal Bank of Scotland Group plc (The):
7.640%, 3–29–49		11,000		10,670
7.500%, 12–29–49		8,000		7,400
Standard Chartered plc
7.500%, 12–29–49 (A)		5,000		4,955
				39,260
Total United Kingdom – 5.3%				39,260
United States
Consumer Discretionary – 1.4%
BakerCorp International, Inc.
8.250%, 6–1–19		6,000		4,845
L Brands, Inc.
6.750%, 7–1–36		5,000		5,378
				10,223
Energy – 1.8%
Energy Transfer Partners L.P.
7.500%, 7–1–38		5,000		5,743
PBF Holding Co. LLC and PBF Finance Corp.
7.000%, 11–15–23 (A)		5,000		4,713
Whiting Petroleum Corp.
6.500%, 10–1–18		3,000		2,955
				13,411

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials – 6.1%
Bank of America Corp.:
8.000%, 7–29–49	$	6,000	$	6,120
6.250%, 9–29–49		3,000		3,124
Bank of New York Mellon Corp. (The)
4.625%, 12–29–49		3,000		2,955
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.:
6.020%, 6–15–26 (A)		1,500		1,645
8.350%, 7–15–46 (A)		3,000		3,594
JPMorgan Chase & Co.:
7.900%, 4–29–49		3,000		3,083
6.125%, 12–29–49		3,000		3,173
New Cotai LLC and New Cotai Capital Corp.
10.625%, 5–1–19 (A)(D)		13,898		7,644
UBS AG, Stamford Branch
7.625%, 8–17–22		2,000		2,330
Wells Fargo & Co.
7.980%, 3–29–49		10,534		11,009
				44,677
Health Care – 1.3%
Chiron Merger Sub, Inc.
12.500%, 11–1–19		225		224
Kinetic Concepts, Inc. and KCI USA, Inc.:
10.500%, 11–1–18		4,280		4,499
9.625%, 10–1–21 (A)		5,000		5,000
				9,723
Industrials – 0.9%
Prime Security Services Borrower LLC
9.250%, 5–15–23 (A)		6,111		6,661
TRAC Intermodal LLC and TRAC Intermodal Corp.
11.000%, 8–15–19		116		123
				6,784
Telecommunication Services – 1.1%
Sprint Capital Corp. and Sprint Corp.
8.750%, 3–15–32		8,000		8,190
Total United States – 12.6%				93,008
TOTAL CORPORATE DEBT SECURITIES – 32.3%			$	238,979
(Cost: $241,202)
OTHER GOVERNMENT SECURITIES (E)
Argentina – 0.7%
Province of Mendoza
8.375%, 5–19–24 (A)		5,000		5,338
Australia – 0.2%
New South Wales Treasury Corp.
5.500%, 3–1–17 (B)	AUD	2,000		1,554

OTHER GOVERNMENT SECURITIES (E) (Continued)	Principal		Value
Canada – 0.7%
City of Toronto
3.500%, 12–6–21 (B)	CAD	2,000	$	1,671
Province of Ontario
4.400%, 6–2–19 (B)		2,000		1,664
Regional Municipality of York
4.000%, 6–30–21 (B)		2,000		1,702
				5,037
Malaysia – 0.1%
Malaysia Government Bond
3.314%, 10–31–17 (B)	MYR	3,000		731
TOTAL OTHER GOVERNMENT SECURITIES – 1.7%			$	12,660
(Cost: $14,292)
LOANS (C)
United States
Consumer Staples – 0.5%
Focus Brands, Inc.
10.250%, 8–21–18	$	1,000		1,000
GOBP Holdings, Inc.
9.250%, 10–21–22		2,906		2,894
				3,894
Energy – 1.7%
Callon Petroleum Co.
8.500%, 10–8–21		12,107		12,223
Empresas ICA S.A.
9.300%, 6–20–17 (F)		2,825		226
				12,449
Industrials – 0.4%
Hampton Rubber Co. & SEI Holding Corp.
9.000%, 3–27–22		3,333		2,666
Information Technology – 1.1%
Misys plc and Magic Newco LLC
12.000%, 6–12–19		7,500		7,875
Materials – 0.1%
EP Minerals LLC
8.500%, 8–20–21		781		750
Total United States – 3.8%				27,634
TOTAL LOANS – 3.8%			$	27,634
(Cost: $30,701)
UNITED STATES GOVERNMENT OBLIGATIONS
United States – 2.9%
U.S. Treasury Bonds:
8.000%, 11–15–21		6,000		8,027
7.250%, 8–15–22		5,000		6,692
7.125%, 2–15–23		5,000		6,773
				21,492
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 2.9%			$	21,492
(Cost: $20,823)

2016 SEMIANNUAL REPORT 53

SCHEDULE OF INVESTMENTS IVY GLOBAL INCOME ALLOCATION FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (G) – 1.3%
J.M. Smucker Co. (The)
0.700%, 10–3–16	$	9,316	$	9,316
Master Note – 0.5%
Toyota Motor Credit Corp.
0.600%, 10–5–16 (H)		3,863		3,863
TOTAL SHORT-TERM SECURITIES – 1.8%			$	13,179
(Cost: $13,179)
TOTAL INVESTMENT SECURITIES – 99.5%			$	735,890
(Cost: $747,735)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.5%				3,689
NET ASSETS – 100.0%			$	739,579

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. At September 30, 2016 the total value of these securities amounted to $97,048 or 13.1% of net assets.

(B) Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, BRL - Brazilian Real, CAD - Canadian Dollar, COP - Columbian Peso, MXN - Mexican Peso, MYR - Malaysian Ringgit, RUB - Russian Ruble and SGD - Singapore Dollar).

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.

(D) Payment-in-kind bonds.

(E) Other Government Securities may include emerging markets sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities.

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

(G) Rate shown is the yield to maturity at September 30, 2016.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		14,900	U.S. Dollar		19,542	10–26–16	UBS AG	$	221	$	—
Euro		40,700	U.S. Dollar		45,834	10–26–16	UBS AG		65		—
								$	286	$	—

54 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY GLOBAL INCOME ALLOCATION FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	388,457	$	—	$	—
Investment Funds		13,341		—		—
Preferred Stocks		20,148		—		—
Corporate Debt Securities		—		238,979		—
Other Government Securities		—		12,660		—
Loans		—		16,117		11,517
United States Government Obligations		—		21,492		—
Short-Term Securities		—		13,179		—
Total	$	421,946	$	302,427	$	11,517
Forward Foreign Currency Contracts	$	—	$	286	$	—

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

	Loans
Beginning Balance 4–1–16	$	1,409
Net realized gain (loss)		—	*
Net change in unrealized appreciation (depreciation)		489
Purchases		—
Sales		—
Amortization/Accretion of premium/discount		(73	)
Transfers into Level 3 during the period		9,692
Transfers out of Level 3 during the period		—
Ending Balance 9-30-16	$	11,517
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9–30–16	$	489

Transfers from Level 2 to Level 3 occurred primarily 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 primarily 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 values as of the beginning of the reporting period. During the period ended September 30, 2016, there were no transfers between Levels 1 and 2.

Information about Level 3 fair value measurements:

	Fair Value at 9–30–16		Valuation Technique(s)	Unobservable Input(s)
Assets
Loans	$	11,517	Third-party vendor pricing service	Broker quotes

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

REIT = Real Estate Investment Trust

2016 SEMIANNUAL REPORT 55

SCHEDULE OF INVESTMENTS IVY GLOBAL INCOME ALLOCATION FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Market Sector Diversification

(as a % of net assets)
Financials	29.1%
Industrials	11.7%
Consumer Discretionary	10.8%
Energy	9.0%
Consumer Staples	8.3%
Information Technology	6.7%
Health Care	5.4%
Materials	4.6%
Telecommunication Services	4.5%
United States Government and Government Agency Obligations	2.9%
Other Government Securities	1.7%
Utilities	1.5%
Real Estate	1.5%
Other+	2.3%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

56 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY HIGH INCOME FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	1.0%
Telecommunication Services	0.5%
Financials	0.3%
Consumer Discretionary	0.2%
Warrants	0.0%
Bonds	94.3%
Corporate Debt Securities	74.6%
Loans	19.7%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	4.7%

Lipper Rankings

Category: Lipper High Yield Funds	Rank	Percentile
1 Year	574/660		87
3 Year	413/554		75
5 Year	128/437		30
10 Year	9/293		4

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	1.9%
BBB	1.9%
Non-Investment Grade	92.4%
BB	12.3%
B	38.3%
CCC	36.2%
Below CCC	1.5%
Non-rated	4.1%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities	5.7%

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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 57

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares			Value
Consumer Discretionary
Cable & Satellite – 0.2%
Altice N.V., Class A (A)(B)		454		$	8,148
Casinos & Gaming – 0.0%
New Cotai Participation Corp., Class B (A)		—	*		513
Housewares & Specialties – 0.0%
Provo Craft & Novelty, Inc. (A)(C)		6,090			—	*
Total Consumer Discretionary – 0.2%					8,661
Financials
Specialized Finance – 0.3%
Maritime Finance Co. Ltd. (A)(C)(D)		1,750			15,277
Total Financials – 0.3%					15,277
TOTAL COMMON STOCKS – 0.5%				$	23,938
(Cost: $38,461)
PREFERRED STOCKS
Telecommunication Services
Integrated Telecommunication Services – 0.5%
Frontier Communications Corp., Convertible Series A, 11.125%		249			20,882
Total Telecommunication Services – 0.5%					20,882
TOTAL PREFERRED STOCKS – 0.5%				$	20,882
(Cost: $24,887)
WARRANTS
Agricultural Products – 0.0%
ASG Consolidated LLC, expires 5–15–18 (E)		13			—
Apparel Retail – 0.0%
St. John Knits International, Inc. (E)		48			179
Commodity Chemicals – 0.0%
Foresight Energy L.P. (E)		36			—
TOTAL WARRANTS – 0.0%				$	179
(Cost: $798)
CORPORATE DEBT SECURITIES	Principal
Consumer Discretionary
Advertising – 0.8%
Acosta, Inc.,
7.750%, 10–1–22 (F)	$	22,646			18,626
Lamar Media Corp.,
5.375%, 1–15–24		6,757			7,112

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Advertising (Continued)
Outfront Media Capital LLC and Outfront Media Capital Corp.:
5.250%, 2–15–22	$	2,900	$	3,016
5.625%, 2–15–24		8,212		8,541
				37,295
Apparel Retail – 1.6%
Hot Topic, Inc.,
9.250%, 6–15–21 (F)		42,321		44,860
HT Intermediate Holdings Corp.,
12.000%, 5–15–19 (F)(G)		12,946		13,205
Neiman Marcus Group Ltd., Inc.,
8.000%, 10–15–21 (F)		20,368		16,906
				74,971
Automotive Retail – 0.6%
Allison Transmission, Inc.,
5.000%, 10–1–24 (F)		4,034		4,126
Group 1 Automotive, Inc.,
5.000%, 6–1–22		3,436		3,453
Penske Automotive Group, Inc.,
5.500%, 5–15–26		2,983		2,976
Sonic Automotive, Inc.,
5.000%, 5–15–23		17,353		17,093
				27,648
Broadcasting – 1.8%
Clear Channel Outdoor Holdings, Inc.,
6.500%, 11–15–22		43,832		45,183
Clear Channel Worldwide Holdings, Inc., Series A,
7.625%, 3–15–20		3,032		2,911
Clear Channel Worldwide Holdings, Inc., Series B,
7.625%, 3–15–20		10,252		10,162
Cumulus Media, Inc.,
7.750%, 5–1–19		33,969		13,757
iHeartCommunications, Inc.,
10.000%, 1–15–18		12,274		8,040
iHeartCommunications, Inc. (GTD by iHeartMedia Capital I LLC),
10.625%, 3–15–23		9,924		7,393
				87,446
Cable & Satellite – 8.4%
Altice Financing S.A.:
6.625%, 2–15–23 (F)		12,126		12,444
7.500%, 5–15–26 (F)		18,738		19,511
Altice S.A.:
7.250%, 5–15–22 (F)(H)	EUR	3,821		4,524
7.750%, 5–15–22 (F)	$	68,474		73,096
6.250%, 2–15–25 (F)(H)	EUR	3,496		3,942
7.625%, 2–15–25 (F)	$	14,356		14,769
Altice U.S. Finance I Corp.,
5.500%, 5–15–26 (F)		11,626		12,004
Cablevision Systems Corp.,
5.875%, 9–15–22		15,710		14,296
CCO Holdings LLC and CCO Holdings Capital Corp.,
5.500%, 5–1–26 (F)		600		629

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Cable & Satellite (Continued)
Columbus International, Inc.,
7.375%, 3–30–21 (F)	$	5,116	$	5,428
DISH DBS Corp.:
6.750%, 6–1–21		17,085		18,409
5.875%, 7–15–22		10,630		10,949
5.000%, 3–15–23		5,265		5,120
5.875%, 11–15–24		3,054		3,016
7.750%, 7–1–26 (F)		8,887		9,442
Neptune Finco Corp.:
10.125%, 1–15–23 (F)		21,285		24,558
6.625%, 10–15–25 (F)		6,478		7,029
10.875%, 10–15–25 (F)		16,255		19,018
Numericable – SFR S.A.,
7.375%, 5–1–26 (F)		44,127		45,106
Sirius XM Radio, Inc.,
4.625%, 5–15–23 (F)		33,613		33,613
VTR Finance B.V.,
6.875%, 1–15–24 (F)		47,584		49,249
Wave Holdco LLC and Wave Holdco Corp.,
8.250%, 7–15–19 (F)(G)		9,907		9,956
				396,108
Casinos & Gaming – 1.5%
Gateway Casinos & Entertainment Ltd.,
8.500%, 11–26–20 (F)(H)	CAD	22,446		16,168
MCE Finance Ltd.,
5.000%, 2–15–21 (F)	$	6,299		6,332
Studio City Finance Ltd.,
8.500%, 12–1–20 (F)		7,513		7,738
Wynn Macau Ltd.,
5.250%, 10–15–21 (F)		39,272		39,665
				69,903
Department Stores – 0.6%
Bon-Ton Stores, Inc. (The):
10.625%, 7–15–17		6,448		6,477
8.000%, 6–15–21		37,571		21,415
				27,892
Distributors – 1.0%
Pinnacle Operating Corp.,
9.000%, 11–15–20 (F)		71,371		49,603
Education Services – 2.3%
Laureate Education, Inc.,
10.000%, 9–1–19 (F)(I)		113,357		108,709
Homefurnishing Retail – 0.7%
Restoration Hardware Holdings, Inc., Convertible:
0.000%, 6–15–19 (F)(J)		21,390		18,449
0.000%, 7–15–20 (F)(J)		17,230		14,064
				32,513
Hotels, Resorts & Cruise Lines – 0.4%
Carlson Travel Holdings,
7.500%, 8–15–19 (F)(G)		17,224		17,052

58 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Movies & Entertainment – 1.7%
AMC Entertainment, Inc.,
5.750%, 6–15–25	$	13,462	$	13,597
Cinemark USA, Inc.:
5.125%, 12–15–22		1,258		1,289
4.875%, 6–1–23		22,239		22,350
EMI Music Publishing Group North America Holdings,
7.625%, 6–15–24 (F)		7,135		7,715
WMG Acquisition Corp.,
6.750%, 4–15–22 (F)		33,200		35,192
				80,143
Publishing – 0.2%
MDC Partners, Inc.,
6.500%, 5–1–24 (F)		9,310		8,542
Specialized Consumer Services – 1.5%
BakerCorp International, Inc.,
8.250%, 6–1–19		67,965		54,881
Nielsen Finance,
5.500%, 10–1–21 (F)		3,151		3,285
Nielsen Finance LLC and Nielsen Finance Co.,
5.000%, 4–15–22 (F)		15,039		15,528
				73,694
Specialty Stores – 1.5%
Jo-Ann Stores Holdings, Inc.,
9.750%, 10–15–19 (F)(G)		75,665		73,773
Total Consumer Discretionary – 24.6%				1,165,292
Consumer Staples
Food Distributors – 1.4%
Performance Food Group, Inc.,
5.500%, 6–1–24 (F)		11,774		12,157
Simmons Foods, Inc.,
7.875%, 10–1–21 (F)		34,974		34,886
U.S. Foods, Inc.,
5.875%, 6–15–24 (F)		17,769		18,480
				65,523
Packaged Foods & Meats – 1.7%
Bumble Bee Foods LLC:
9.000%, 12–15–17 (F)		5,763		5,792
9.625%, 3–15–18 (F)(G)		11,758		11,670
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.),
7.750%, 10–28–20 (F)		2,300		2,403
JBS USA LLC and JBS USA Finance, Inc.:
7.250%, 6–1–21 (F)		2,418		2,484
5.875%, 7–15–24 (F)		28,772		28,628
5.750%, 6–15–25 (F)		13,407		13,172
Post Holdings, Inc.:
7.750%, 3–15–24 (F)		4,871		5,456
8.000%, 7–15–25 (F)		4,410		5,047
5.000%, 8–15–26 (F)		5,849		5,820
				80,472

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Personal Products – 0.1%
Revlon Consumer Products Corp.,
5.750%, 2–15–21	$	4,734	$	4,829
Revlon Escrow Corp.,
6.250%, 8–1–24 (F)		2,924		3,019
				7,848
Total Consumer Staples – 3.2%				153,843
Energy
Coal & Consumable Fuels – 0.6%
Foresight Energy LLC and Foresight Energy Finance Corp.,
10.000%, 8–15–21 (F)(G)		23,299		20,911
Foresight Energy LLC and Foresight Energy Finance Corp., Convertible,
15.000%, 10–3–17 (G)(I)		8,370		7,533
				28,444
Integrated Oil & Gas – 0.3%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.),
8.375%, 5–23–21		14,896		16,321
Oil & Gas Drilling – 1.2%
Globe Luxembourg SCA,
9.625%, 5–1–18 (F)(I)		14,865		13,639
KCA DEUTAG UK Finance plc,
7.250%, 5–15–21 (F)		20,636		16,921
Offshore Drilling Holding S.A.,
8.375%, 9–20–20 (F)(I)		44,521		24,598
Offshore Group Investment Ltd.,
0.000%, 11–1–19		14,866		—
				55,158
Oil & Gas Exploration & Production – 3.9%
Bellatrix Exploration Ltd.,
8.500%, 5–15–20 (F)		20,556		19,117
California Resources Corp.,
8.000%, 12–15–22 (F)		17,804		11,840
Clayton Williams Energy, Inc.,
7.750%, 4–1–19		48,491		47,400
Crownrock L.P.,
7.750%, 2–15–23 (F)		6,941		7,444
EnCana Corp.,
6.500%, 8–15–34		7,113		7,446
Endeavor Energy Resources L.P.:
7.000%, 8–15–21 (F)		19,368		19,901
8.125%, 9–15–23 (F)		6,146		6,545
Gulfport Energy Corp.,
6.625%, 5–1–23		2,064		2,116
Laredo Petroleum, Inc.,
7.375%, 5–1–22		17,510		18,101
Midstates Petroleum Co., Inc. and Midstates Petroleum Co. LLC,
10.000%, 6–1–20 (K)		15,053		10,085
Parsley Energy LLC and Parsley Finance Corp.,
6.250%, 6–1–24 (F)		3,550		3,665
Whiting Petroleum Corp.,
6.500%, 10–1–18		31,142		30,675
				184,335

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Refining & Marketing – 1.7%
Callon Petroleum Co. (GTD by Callon Petroleum Operating Co.),
6.125%, 10–1–24 (F)	$	2,881	$	2,982
PBF Holding Co. LLC and PBF Finance Corp.,
7.000%, 11–15–23 (F)		17,612		16,599
PDC Energy, Inc.,
6.125%, 9–15–24 (F)		2,310		2,403
Seven Generations Energy Ltd.:
8.250%, 5–15–20 (F)		29,007		30,856
6.750%, 5–1–23 (F)		27,127		28,144
				80,984
Oil & Gas Storage & Transportation – 0.2%
Access Midstream Partners L.P.,
4.875%, 5–15–23		7,412		7,501
Total Energy – 7.9%				372,743
Financials
Consumer Finance – 1.1%
Creditcorp,
12.000%, 7–15–18 (F)		40,520		18,234
Quicken Loans, Inc.,
5.750%, 5–1–25 (F)		23,889		23,710
Speedy Cash Intermediate Holdings Corp.,
10.750%, 5–15–18 (F)		8,232		5,927
Speedy Group Holdings Corp.,
12.000%, 11–15–17 (F)		14,715		6,916
				54,787
Diversified Capital Markets – 1.2%
Patriot Merger Corp.,
9.000%, 7–15–21 (F)		53,861		55,335
Investment Banking & Brokerage – 0.3%
E*TRADE Financial Corp.,
5.875%, 12–29–49		4,068		4,200
GFI Group, Inc.,
8.375%, 7–19–18 (I)		11,120		12,010
				16,210
Other Diversified Financial Services – 2.4%
AAF Holdings LLC and AAF Finance Co.,
12.000%, 7–1–19 (F)(G)		10,051		10,302
Balboa Merger Sub, Inc.,
11.375%, 12–1–21 (F)		22,692		20,196
Greektown Holdings LLC and Greektown Mothership Corp.,
8.875%, 3–15–19 (F)		25,225		26,676
New Cotai LLC and New Cotai Capital Corp.,
10.625%, 5–1–19 (F)(G)		104,757		57,616
				114,790
Property & Casualty Insurance – 1.2%
Hub International Ltd.,
7.875%, 10–1–21 (F)		4,004		4,084

2016 SEMIANNUAL REPORT 59

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Property & Casualty Insurance (Continued)
Onex USI Acquisition Corp.,
7.750%, 1–15–21 (F)	$	51,892	$	52,670
				56,754
Specialized Finance – 2.0%
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.:
4.420%, 6–15–21 (F)		5,960		6,229
5.875%, 6–15–21 (F)		4,154		4,414
5.450%, 6–15–23 (F)		2,979		3,190
7.125%, 6–15–24 (F)		4,154		4,569
6.020%, 6–15–26 (F)		5,960		6,538
Flexi-Van Leasing, Inc.,
7.875%, 8–15–18 (F)		16,791		15,154
TMX Finance LLC and TitleMax Finance Corp.,
8.500%, 9–15–18 (F)		71,555		53,308
				93,402
Thrifts & Mortgage Finance – 0.7%
Provident Funding Associates L.P. and PFG Finance Corp.,
6.750%, 6–15–21 (F)		32,010		32,290
Total Financials – 8.9%				423,568
Health Care
Health Care Facilities – 1.7%
Chiron Merger Sub, Inc.,
12.500%, 11–1–19		2,794		2,780
Double Eagle Acquisition Sub, Inc.,
7.500%, 10–1–24 (F)		6,891		7,012
Greatbatch Ltd.,
9.125%, 11–1–23 (F)		20,906		20,488
HCA, Inc.,
5.250%, 6–15–26		4,228		4,492
MPH Acquisition Holdings LLC,
7.125%, 6–1–24 (F)		11,898		12,790
Surgery Center Holdings, Inc.,
8.875%, 4–15–21 (F)		30,120		32,153
				79,715
Health Care Supplies – 1.4%
Kinetic Concepts, Inc. and KCI USA, Inc.,
9.625%, 10–1–21 (F)		54,829		54,829
Universal Hospital Services, Inc.,
7.625%, 8–15–20		13,052		12,432
				67,261
Pharmaceuticals – 1.4%
Concordia Healthcare Corp.:
9.500%, 10–21–22 (F)		59,541		41,232
7.000%, 4–15–23 (F)		7,125		4,560
IMS Health, Inc.,
5.000%, 10–15–26 (F)		6,780		7,051
VPII Escrow Corp.,
7.500%, 7–15–21 (F)		6,802		6,581

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Pharmaceuticals (Continued)
VRX Escrow Corp.,
5.375%, 3–15–20 (F)	$	8,875	$	8,210
				67,634
Total Health Care – 4.5%				214,610
Industrials
Aerospace & Defense – 2.0%
KLX, Inc.,
5.875%, 12–1–22 (F)		21,081		21,819
Silver II Borrower SCA and Silver II U.S. Holdings,
7.750%, 12–15–20 (F)		25,749		20,406
TransDigm, Inc. (GTD by TransDigm Group, Inc.):
6.500%, 7–15–24		34,813		36,641
6.375%, 6–15–26 (F)		15,559		16,142
				95,008
Air Freight & Logistics – 0.4%
TRAC Intermodal LLC and TRAC Intermodal Corp.,
11.000%, 8–15–19		4,942		5,214
XPO Logistics, Inc.:
6.500%, 6–15–22 (F)		7,550		7,899
6.125%, 9–1–23 (F)		4,075		4,187
				17,300
Building Products – 1.1%
Alcoa Nederland Holding B.V.:
6.750%, 9–30–24 (F)		2,557		2,656
7.000%, 9–30–26 (F)		2,557		2,643
Eagle Materials, Inc.,
4.500%, 8–1–26		2,337		2,370
Ply Gem Industries, Inc.,
6.500%, 2–1–22		28,758		29,416
Summit Materials LLC and Summit Materials Finance Corp.:
8.500%, 4–15–22 (F)		2,416		2,633
6.125%, 7–15–23		5,046		5,147
WESCO Distribution, Inc. (GTD by WESCO International, Inc.),
5.375%, 6–15–24 (F)		5,940		5,951
				50,816
Diversified Support Services – 0.1%
United Rentals (North America), Inc. (GTD by United Rentals, Inc.),
5.875%, 9–15–26		2,990		3,080
Environmental & Facilities Services – 0.7%
GFL Environmental, Inc.:
7.875%, 4–1–20 (F)		25,429		26,700
9.875%, 2–1–21 (F)		5,386		5,898
				32,598
Railroads – 0.9%
Florida East Coast Holdings Corp. and Florida East Coast Industries LLC:
6.750%, 5–1–19 (F)		28,925		29,648
9.750%, 5–1–20 (F)		15,221		13,813
				43,461

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Security & Alarm Services – 0.7%
Prime Security Services Borrower LLC,
9.250%, 5–15–23 (F)	$	30,972	$	33,760
Trading Companies & Distributors – 0.2%
HD Supply, Inc.,
5.750%, 4–15–24 (F)		10,544		11,071
Total Industrials – 6.1%				287,094
Information Technology
Application Software – 2.0%
Infor Software Parent LLC and Infor Software Parent, Inc.,
7.125%, 5–1–21 (F)(G)		18,196		17,650
Kronos Acquisition Holdings, Inc.,
9.000%, 8–15–23 (F)		62,294		64,201
Michael Baker International LLC,
8.250%, 10–15–18 (F)		10,605		10,632
				92,483
Communications Equipment – 0.6%
West Corp.,
5.375%, 7–15–22 (F)		30,869		30,252
Data Processing & Outsourced Services – 1.6%
Alliance Data Systems Corp.,
5.375%, 8–1–22 (F)		29,711		28,968
Italics Merger Sub, Inc.,
7.125%, 7–15–23 (F)		50,783		47,228
				76,196
Electronic Manufacturing Services – 0.3%
KEMET Corp.,
10.500%, 5–1–18		14,981		15,019
IT Consulting & Other Services – 1.0%
NCR Escrow Corp.:
5.875%, 12–15–21		22,601		23,787
6.375%, 12–15–23		22,549		23,846
				47,633
Semiconductors – 0.9%
Micron Technology, Inc.:
5.875%, 2–15–22		26,575		27,273
7.500%, 9–15–23 (F)		12,294		13,655
5.500%, 2–1–25		1,943		1,904
				42,832
Technology Hardware, Storage & Peripherals – 0.4%
Western Digital Corp.:
7.375%, 4–1–23 (F)		3,009		3,302
10.500%, 4–1–24 (F)		13,052		15,157
				18,459
Total Information Technology – 6.8%				322,874

60 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Materials
Aluminum – 2.8%
Constellium N.V.:
8.000%, 1–15–23 (F)	$	34,437	$	34,695
5.750%, 5–15–24 (F)		16,523		15,284
Kaiser Aluminum Corp.,
5.875%, 5–15–24		2,392		2,500
Novelis Corp. (GTD by Novelis, Inc.):
6.250%, 8–15–24 (F)		8,724		9,269
5.875%, 9–30–26 (F)		5,784		5,921
Wise Metals Group LLC,
8.750%, 12–15–18 (F)		23,691		24,165
Wise Metals Intermediate Holdings,
9.750%, 6–15–19 (F)(G)		42,075		40,392
				132,226
Construction Materials – 0.8%
Hillman Group, Inc. (The),
6.375%, 7–15–22 (F)		38,106		35,724
Diversified Chemicals – 0.4%
PQ Corp.,
6.750%, 11–15–22 (F)		1,797		1,905
PSPC Escrow Corp.,
6.500%, 2–1–22 (F)		11,779		11,455
PSPC Escrow II Corp.,
10.375%, 5–1–21 (F)		5,919		6,392
				19,752
Diversified Metals & Mining – 1.0%
Artsonig Pty Ltd.,
11.500%, 4–1–19 (F)(G)		46,591		2,795
Crystal Merger Sub, Inc.,
7.625%, 10–15–21 (F)		8,259		7,062
FMG Resources Pty Ltd.:
9.750%, 3–1–22 (F)		3,438		3,988
6.875%, 4–1–22 (F)		28,227		29,209
Lundin Mining Corp.:
7.500%, 11–1–20 (F)		1,178		1,252
7.875%, 11–1–22 (F)		3,980		4,239
				48,545
Metal & Glass Containers – 0.7%
ARD Finance S.A.,
7.125%, 9–15–23 (F)		3,217		3,201
Ardagh Packaging Finance plc and Ardagh Holdings USA, Inc.,
7.250%, 5–15–24 (F)		8,752		9,343
BlueScope Steel (Finance) Ltd. and BlueScope Steel Finance (USA) LLC,
7.125%, 5–1–18 (F)		11,259		11,495
Signode Industrial Group,
6.375%, 5–1–22 (F)		11,052		11,190
				35,229
Paper Packaging – 0.5%
Coveris Holdings S.A.,
7.875%, 11–1–19 (F)		8,310		8,497

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Paper Packaging (Continued)
Reynolds Group Issuer, Inc., Reynolds Group Issuer LLC and Reynolds Group Issuer (Luxembourg) S.A.,
5.125%, 7–15–23 (F)	$	13,571	$	14,012
				22,509
Specialty Chemicals – 0.1%
Versum Materials, Inc.,
5.500%, 9–30–24 (F)		2,873		2,952
Steel – 0.1%
U.S. Steel Corp.,
8.375%, 7–1–21 (F)		4,186		4,579
Total Materials – 6.4%				301,516
Real Estate
Health Care REITs – 0.1%
MPT Operating Partnership L.P. and MPT Finance Corp. (GTD by Medical Properties Trust, Inc.),
5.250%, 8–1–26		2,928		3,038
Industrial REITs – 0.2%
Aircastle Ltd.:
5.500%, 2–15–22		4,223		4,555
5.000%, 4–1–23		6,553		6,848
				11,403
Real Estate Development – 0.4%
Hub Holdings LLC and Hub Holdings Finance, Inc.,
8.125%, 7–15–19 (F)(G)		17,764		17,320
Total Real Estate – 0.7%				31,761
Telecommunication Services
Alternative Carriers – 0.3%
Consolidated Communications Finance II Co.,
6.500%, 10–1–22		9,598		9,310
Zayo Group LLC and Zayo Capital, Inc.,
6.000%, 4–1–23		4,151		4,348
				13,658
Integrated Telecommunication Services – 3.4%
BCP (Singapore) VI Cayman Financing Co. Ltd.,
8.000%, 4–15–21 (F)		5,694		5,609
Frontier Communications Corp.:
8.875%, 9–15–20		22,650		24,434
6.250%, 9–15–21		15,908		15,292
10.500%, 9–15–22		8,332		8,832
7.125%, 1–15–23		2,412		2,249
6.875%, 1–15–25		8,428		7,459
11.000%, 9–15–25		14,998		15,635
GCI, Inc.,
6.875%, 4–15–25		22,144		22,698

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Integrated Telecommunication Services (Continued)
Sprint Corp.:
7.250%, 9–15–21	$	43,872	$	44,091
7.875%, 9–15–23		16,141		16,302
				162,601
Wireless Telecommunication Service – 1.8%
Sable International Finance Ltd.,
6.875%, 8–1–22 (F)		26,720		27,722
Sprint Nextel Corp.:
8.375%, 8–15–17		11,509		11,955
9.000%, 11–15–18 (F)		3,686		4,064
7.000%, 8–15–20		3,022		3,037
11.500%, 11–15–21		2,342		2,693
T-Mobile USA, Inc.:
6.731%, 4–28–22		5,891		6,186
6.000%, 4–15–24		10,845		11,604
6.500%, 1–15–26		16,374		18,134
				85,395
Total Telecommunication Services – 5.5%				261,654
TOTAL CORPORATE DEBT SECURITIES – 74.6%			$	3,534,955
(Cost: $3,730,546)
LOANS (I)
Consumer Discretionary
Advertising – 0.4%
Advantage Sales & Marketing, Inc.,
7.500%, 7–25–22		18,474		17,527
Apparel Retail – 2.0%
Talbots, Inc. (The):
5.500%, 3–19–20		21,493		20,950
9.500%, 3–19–21		60,047		55,644
True Religion Apparel, Inc.:
5.875%, 7–30–19		76,740		18,034
5.875%, 7–30–19		199		47
				94,675
Casinos & Gaming – 0.2%
Gateway Casinos & Entertainment Ltd.:
5.250%, 11–26–19 (H)	CAD	14,568		10,882
5.950%, 11–26–19 (H)		38		28
				10,910
Department Stores – 0.8%
Belk, Inc.,
5.750%, 12–10–22	$	39,437		35,676
General Merchandise Stores – 1.2%
BJ’s Wholesale Club, Inc.,
8.500%, 3–31–20		34,670		34,783
Orchard Acquisition Co. LLC,
7.000%, 2–8–19		63,765		22,955
				57,738

2016 SEMIANNUAL REPORT 61

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

LOANS (I) (Continued)	Principal		Value
Housewares & Specialties – 0.3%
KIK Custom Products, Inc.,
6.000%, 8–26–22	$	13,278	$	13,278
Provo Craft & Novelty, Inc.,
10.000%, 7–7–19 (G)		485		—
				13,278
Specialty Stores – 0.3%
Jo-Ann Stores, Inc.,
0.000%, 9–29–23 (L)		15,567		15,295
Total Consumer Discretionary – 5.2%				245,099
Consumer Staples
Food Distributors – 0.3%
Chefs’ Warehouse, Inc. (The),
6.750%, 6–22–22		12,057		11,936
Food Retail – 0.3%
Focus Brands, Inc.,
10.250%, 8–21–18		15,399		15,399
Hypermarkets & Super Centers – 0.3%
GOBP Holdings, Inc.,
9.250%, 10–21–22		15,658		15,593
Packaged Foods & Meats – 0.4%
Shearer’s Foods LLC,
7.750%, 6–30–22		18,980		17,177
Total Consumer Staples – 1.3%				60,105
Energy
Coal & Consumable Fuels – 0.3%
Westmoreland Coal Co.,
7.500%, 12–16–20		20,157		15,722
Oil & Gas Drilling – 0.5%
KCA Deutag Alpha Ltd.,
6.250%, 5–16–20		26,521		22,189
Oil & Gas Exploration & Production – 0.4%
Chesapeake Energy Corp.,
8.500%, 8–16–21		17,434		18,289
Sabine Oil & Gas LLC,
11.750%, 12–31–18 (K)		7,527		217
				18,506
Oil & Gas Storage & Transportation – 1.1%
Bowie Resources Holdings LLC:
6.750%, 8–12–20		37,908		31,085
11.750%, 2–16–21		26,759		21,407
				52,492
Total Energy – 2.3%				108,909
Health Care
Life Sciences Tools & Services – 0.8%
Atrium Innovations, Inc.,
7.750%, 8–10–21		40,260		37,844
Total Health Care – 0.8%				37,844

LOANS (I) (Continued)	Principal		Value
Industrials
Building Products – 0.6%
C.H.I. Overhead Doors, Inc.,
8.750%, 7–31–23	$	11,909	$	11,686
Hampton Rubber Co. & SEI Holding Corp.,
9.000%, 3–27–22		23,667		18,933
				30,619
Construction & Engineering – 0.2%
Tensar International Corp.,
9.500%, 7–10–22		15,197		11,398
Industrial Conglomerates – 0.2%
Crosby Worldwide Ltd.,
7.000%, 11–22–21		10,976		7,391
Industrial Machinery – 1.0%
Dynacast International LLC,
9.500%, 1–30–23		48,836		47,615
Research & Consulting Services – 0.3%
Larchmont Resources LLC,
11.250%, 8–7–19 (K)		40,606		12,317
Total Industrials – 2.3%				109,340
Information Technology
Application Software – 4.2%
Applied Systems, Inc.,
7.500%, 1–23–22		34,491		34,728
Aptean Holdings, Inc.,
5.250%, 2–27–20		7,889		7,879
Misys plc and Magic Newco LLC,
12.000%, 6–12–19		132,227		138,838
TIBCO Software, Inc.,
6.500%, 12–4–20		19,459		19,157
				200,602
Internet Software & Services – 1.4%
TravelCLICK, Inc. & TCH-2 Holdings LLC:
5.500%, 5–12–21		27,851		27,851
8.750%, 11–12–21		38,654		37,881
				65,732
IT Consulting & Other Services – 0.8%
Active Network, Inc. (The),
5.500%, 11–15–20		15,542		15,426
Triple Point Group Holdings, Inc.,
5.250%, 7–13–20		27,290		24,220
				39,646
Total Information Technology – 6.4%				305,980
Materials
Diversified Metals & Mining – 0.2%
EP Minerals LLC,
8.500%, 8–20–21		12,375		11,880
Paper Packaging – 0.9%
FPC Holdings, Inc.,
9.250%, 5–27–20		32,147		22,101

LOANS (I) (Continued)	Principal		Value
Paper Packaging (Continued)
Ranpak (Rack Merger),
8.250%, 10–1–22	$	22,856	$	21,142
				43,243
Specialty Chemicals – 0.3%
Chromaflo Technologies Corp.,
8.250%, 6–2–20		11,000		10,230
MacDermid, Inc.,
5.500%, 6–7–20		1,792		1,794
				12,024
Total Materials – 1.4%				67,147
TOTAL LOANS – 19.7%			$	934,424
(Cost: $1,114,414)
SHORT-TERM SECURITIES
Commercial Paper (M) – 2.8%
Bemis Co., Inc.,
0.720%, 10–3–16		14,000		13,999
BorgWarner, Inc.:
0.700%, 10–6–16		10,000		9,999
0.660%, 10–11–16		8,000		7,998
Clorox Co. (The),
0.810%, 10–27–16		5,205		5,202
DTE Energy Co. (GTD by Detroit Edison Co.),
0.610%, 10–6–16		5,000		4,999
General Mills, Inc.,
0.580%, 10–3–16		5,000		5,000
J.M. Smucker Co. (The),
0.700%, 10–3–16		31,361		31,359
Kellogg Co.,
0.760%, 10–11–16		4,000		3,999
Kroger Co. (The),
0.630%, 10–3–16		18,370		18,369
Medtronic Global Holdings SCA,
0.720%, 10–3–16		10,000		10,000
NBCUniversal Enterprise, Inc.,
0.830%, 11–9–16		6,000		5,994
River Fuel Trust #1 (GTD by Bank of Nova Scotia),
0.580%, 10–31–16		2,000		1,999
St. Jude Medical, Inc.,
0.700%, 10–3–16		8,709		8,709
Virginia Electric and Power Co.,
0.690%, 10–19–16		5,000		4,998
				132,624
Master Note – 0.0%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (N)		148		148
TOTAL SHORT-TERM SECURITIES – 2.8%			$	132,772
(Cost: $132,775)
TOTAL INVESTMENT SECURITIES – 98.1%			$	4,647,150
(Cost: $5,041,881)
CASH AND OTHER ASSETS, NET OF LIABILITIES (O) – 1.9%				91,970
NET ASSETS – 100.0%			$	4,739,120

62 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Notes to Schedule of Investments

* 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) Restricted securities. At September 30, 2016, the Fund owned the following restricted securities:

Security	Acquisition Date(s)		Shares		Cost		Market Value
Maritime Finance Co. Ltd.		9–19–13		1,750	$	30,173		$15,277
Provo Craft & Novelty, Inc.		9–15–11		6,090		—		—	*
					$	30,173	$	15,277

The total value of these securities represented 0.3% of net assets at September 30, 2016.

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

(E) Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

(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. At September 30, 2016 the total value of these securities amounted to $2,630,701 or 55.5% of net assets.

(G) Payment-in-kind bonds.

(H) Principal amounts are denominated in the indicated foreign currency, where applicable (CAD - Canadian Dollar and EUR - Euro).

(I) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.

(J) Zero coupon bond.

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

(L) All or a portion of this position has not settled. Full contract rates do not take effect until settlement date.

(M) Rate shown is the yield to maturity at September 30, 2016.

(N) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

(O) Cash of $3,920 is held in collateralized accounts for OTC derivatives collateral as governed by International Swaps and Derivatives Association, Inc. Master Agreements.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
Canadian Dollar		35,157	U.S. Dollar		26,999	10–26–16	Morgan Stanley International	$	197	$	—
Euro		8,098	U.S. Dollar		9,120	10–26–16	Morgan Stanley International		13		—
								$	210	$	—

2016 SEMIANNUAL REPORT 63

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	8,148	$	—	$	513
Financials		—		—		15,277
Total Common Stocks	$	8,148	$	—	$	15,790
Preferred Stocks		20,882		—		—
Warrants		—		179		—
Corporate Debt Securities		—		3,534,955		—
Loans		—		514,237		420,187
Short-Term Securities		—		132,772		—
Total	$	29,030	$	4,182,143	$	435,977
Forward Foreign Currency Contracts	$	—	$	210	$	—

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

	Common Stocks			Warrants			Loans
Beginning Balance 4–1–16	$	17,586		$	–		$	327,012
Net realized gain (loss)		—			–			(9,825	)
Net change in unrealized appreciation (depreciation)		(1,796	)		(19	)		33,691
Purchases		—			–			15,279
Sales		—			–			(86,275	)
Amortization/Accretion of premium/discount		—			–			573
Transfers into Level 3 during the period		—			19			199,505
Transfers out of Level 3 during the period		—			–			(59,773	)
Ending Balance 9–30–16	$	15,790		$	–		$	420,187
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9–30–16	$	(15,081	)	$	(19	)	$	22,115

Transfers from Level 2 to Level 3 occurred primarily 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 primarily 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 values as of the beginning of the reporting period. During the period ended September 30, 2016, there were no transfers between Levels 1 and 2.

Information about Level 3 fair value measurements:

	Fair Value at 9–30–16		Valuation Technique(s)	Unobservable Input(s)
Assets
Common Stocks	$	513	Broker	Broker quotes
		15,277	Third-party vendor pricing service	Broker quotes
Loans		420,187	Third-party vendor pricing service	Broker quotes

The following acronyms are used throughout this schedule:

GTD = Guaranteed

REIT = Real Estate Investment Trust

OTC = Over the Counter

See Accompanying Notes to Financial Statements.

64 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY INTERNATIONAL CORE EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	97.5%
Financials	17.3%
Health Care	14.6%
Consumer Discretionary	13.4%
Industrials	12.9%
Information Technology	8.9%
Consumer Staples	8.2%
Energy	7.9%
Materials	7.5%
Telecommunication Services	5.0%
Real Estate	1.8%
Rights	0.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.5%

Lipper Rankings

Category: Lipper International Large-Cap Core Funds	Rank	Percentile
1 Year	46/135		34
3 Year	4/116		4
5 Year	7/107		7
10 Year	3/84		4

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	58.0%
United Kingdom	16.2%
France	9.9%
Switzerland	8.2%
Germany	7.5%
Ireland	4.4%
Other Europe	11.8%
Pacific Basin	31.2%
Japan	17.3%
China	4.4%
Australia	3.9%
Other Pacific Basin	5.6%
Other	4.4%
North America	2.7%
South America	1.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.5%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Bridgestone Corp.	Japan	Consumer Discretionary	Tires & Rubber
Teva Pharmaceutical Industries Ltd. ADR	Israel	Health Care	Pharmaceuticals
Shire Pharmaceuticals Group plc ADR	Ireland	Health Care	Biotechnology
Pernod Ricard	France	Consumer Staples	Distillers & Vintners
Deutsche Post AG	Germany	Industrials	Air Freight & Logistics
Nestle S.A., Registered Shares	Switzerland	Consumer Staples	Packaged Foods & Meats
SoftBank Group Corp.	Japan	Telecommunication Services	Wireless Telecommunication Service
Naspers Ltd., Class N	South Africa	Consumer Discretionary	Cable & Satellite
BAE Systems plc	United Kingdom	Industrials	Aerospace & Defense
Fresenius SE & Co. KGaA	Germany	Health Care	Health Care Services

See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 65

SCHEDULE OF INVESTMENTS IVY INTERNATIONAL CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Energy – 1.3%
Oil Search Ltd.		10,674	$	57,920
Financials – 1.5%
Westpac Banking Corp.		3,106		70,161
Materials – 1.1%
Amcor Ltd.		4,313		50, 009
Total Australia – 3.9%				178,090
Brazil
Information Technology – 1.2%
MercadoLibre, Inc.		300		55,440
Total Brazil – 1.2%				55,440
Canada
Energy – 1.4%
Suncor Energy, Inc.		2,266		62,891
Total Canada – 1.4%				62,891
China
Consumer Discretionary – 1.5%
JD.com, Inc. ADR (A)		2,593		67,640
Consumer Staples – 0.5%
Kweichow Moutai Co. Ltd., A Shares		517		23,089
Financials – 1.3%
PICC Property and Casualty Co. Ltd., H Shares		36,548		60,501
Information Technology – 1.1%
Alibaba Group Holding Ltd. ADR (A)		450		47,595
Total China – 4.4%				198,825
Denmark
Financials – 1.3%
Danske Bank A.S.		1,953		56,982
Total Denmark – 1.3%				56,982
Finland
Information Technology – 2.2%
Nokia Corp., Series A ADR		5,026		29,100
Nokia OYJ		12,040		69,787
				98,887
Total Finland – 2.2%				98,887
France
Consumer Discretionary – 1.1%
Publicis Groupe S.A.		674		50,941

COMMON STOCKS (Continued)	Shares		Value
Consumer Staples – 2.3%
Pernod Ricard		874	$	103,459
Energy – 1.3%
Total S.A.		1,209		57,268
Industrials – 3.9%
Bouygues S.A.		1,753		58,077
European Aeronautic Defence and Space Co.		1,033		62,473
Vinci		716		54,752
				175,302
Materials – 0.8%
L Air Liquide S.A.		364		39,008
Telecommunication Services – 0.5%
Orange S.A.		1,622		25,378
Total France – 9.9%				451,356
Germany
Health Care – 5.3%
Bayer AG		774		77,775
Fresenius Medical Care AG & Co. KGaA		881		76,913
Fresenius SE & Co. KGaA		1,080		86,137
				240,825
Industrials – 2.2%
Deutsche Post AG		3,131		97,854
Total Germany – 7.5%				338,679
Hong Kong
Financials – 1.4%
AIA Group Ltd.		9,691		64,408
Real Estate – 1.8%
Cheung Kong (Holdings) Ltd.		6,384		81,156
Total Hong Kong – 3.2%				145,564
Ireland
Health Care – 2.3%
Shire Pharmaceuticals Group plc ADR		542		105,099
Materials – 2.1%
CRH plc		1,496		49,677
James Hardie Industries plc, Class C		3,030		47,125
				96,802
Total Ireland – 4.4%				201,901
Israel
Health Care – 2.3%
Teva Pharmaceutical Industries Ltd. ADR		2,312		106,376
Total Israel – 2.3%				106,376

COMMON STOCKS (Continued)	Shares		Value
Italy
Financials – 1.0%
Banca Intesa S.p.A.		20,870	$	46,279
Total Italy – 1.0%				46,279
Japan
Consumer Discretionary – 6.5%
Bridgestone Corp.		3,124		114,175
Honda Motor Co. Ltd.		2,814		80,129
Isuzu Motors Ltd.		6,390		74,322
Nissin Kogyo Co. Ltd.		1,822		27,513
				296,139
Energy – 1.5%
Inpex Corp.		7,750		69,484
Financials – 2.4%
Dai-ichi Mutual Life Insurance Co. (The)		4,708		63,673
Tokio Marine Holdings, Inc.		1,236		46,716
				110,389
Industrials – 1.8%
Komatsu Ltd.		2,353		53,249
Mitsubishi Heavy Industries Ltd.		6,604		27,294
				80,543
Information Technology – 1.3%
Fujitsu Ltd.		6,763		36,014
Yahoo Japan Corp.		5,175		20,514
				56,528
Materials – 0.6%
Taiheiyo Cement Corp.		9,082		25,883
Telecommunication Services – 3.2%
Nippon Telegraph and Telephone Corp.		1,084		49,328
SoftBank Group Corp.		1,497		96,275
				145,603
Total Japan – 17.3%				784,569
Luxembourg
Energy – 0.9%
Tenaris S.A.		1,486		21,174
Tenaris S.A. ADR		675		19,156
				40,330
Total Luxembourg – 0.9%				40,330
Netherlands
Financials – 1.2%
ING Groep N.V., Certicaaten Van Aandelen		4,303		53,123
Total Netherlands – 1.2%				53,123

66 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY INTERNATIONAL CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Norway
Financials – 1.2%
DNB ASA		4,232	$	55,418
Total Norway – 1.2%				55,418
South Africa
Consumer Discretionary – 2.1%
Naspers Ltd., Class N		540		93,399
Total South Africa – 2.1%				93,399
South Korea
Information Technology – 1.8%
Samsung Electronics Co. Ltd.		57		82,644
Total South Korea – 1.8%				82,644
Spain
Financials – 1.4%
Banco Bilbao Vizcaya Argentaria S.A.		10,180		61,549
Total Spain – 1.4%				61,549
Sweden
Financials – 1.1%
SwedBank AB		2,152		50,560
Materials – 1.5%
Svenska Cellulosa Aktiebolaget SCA (publ), Class B		2,242		66,590
Total Sweden – 2.6%				117,150
Switzerland
Consumer Discretionary – 0.6%
Dufry AG (A)		227		28,417
Consumer Staples – 2.2%
Nestle S.A., Registered Shares		1,241		97,778
Health Care – 2.4%
Novartis AG, Registered Shares		736		57,872
Roche Holdings AG, Genusscheine		203		50,383
				108,255
Industrials – 3.0%
Adecco S.A.		1,467		82,608
Wolseley plc		943		53,230
				135,838
Total Switzerland – 8.2%				370,288

COMMON STOCKS (Continued)	Shares			Value
Taiwan
Information Technology – 0.6%
Hon Hai Precision Industry Co. Ltd.		10,874		$	27,405
Total Taiwan – 0.6%					27,405
United Kingdom
Consumer Discretionary – 1.6%
WPP Group plc		3,008			70,729
Consumer Staples – 3.2%
Imperial Tobacco Group plc		1,419			73,076
Unilever plc		1,526			72,272
					145,348
Energy – 1.5%
BP plc		11,619			67,767
Royal Dutch Shell plc, Class A		—	*		—	*
					67,767
Financials – 2.9%
Aviva plc		9,939			56,744
Legal & General Group plc		18,984			53,814
Prudential plc		1,240			21,963
					132,521
Health Care – 2.3%
Shire plc		704			45,593
Smith & Nephew plc		3,607			58,153
					103,746
Industrials – 2.0%
BAE Systems plc		13,281			90,202
Materials – 1.4%
Rio Tinto plc		1,479			49,363
Rio Tinto plc ADR		486			16,236
					65,599
Telecommunication Services – 1.3%
BT Group plc		11,297			56,966
Total United Kingdom – 16.2%					732,878
United States
Information Technology – 0.7%
Cognizant Technology Solutions Corp., Class A (A)		660			31,508
Total United States – 0.7%					31,508
TOTAL COMMON STOCKS – 96.9%				$	4,391,531
(Cost: $4,283,037)

PREFERRED STOCKS	Shares		Value
United States
Financials – 0.6%
Mandatory Exchangeable Trust, 5.750% (B)		217	$	28,048
Total United States – 0.6%				28,048
TOTAL PREFERRED STOCKS – 0.6%			$	28,048
(Cost: $21,710)
RIGHTS
France – 0.0%
L’Air Liquide S.A.		364		994
TOTAL RIGHTS – 0.0%			$	994
(Cost: $1,053)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 1.8%
BorgWarner, Inc.
0.700%, 10–6–16	$	10,000		9,999
DTE Gas Co.
0.500%, 10–3–16		15,900		15,899
General Mills, Inc.
0.510%, 10–5–16		19,000		18,998
J.M. Smucker Co. (The)
0.700%, 10–3–16		9,278		9,277
Kroger Co. (The)
0.630%, 10–3–16		25,000		24,999
				79,172
Master Note – 0.0%
Toyota Motor Credit Corp.
0.600%, 10–5–16 (D)		1,982		1,982
TOTAL SHORT-TERM SECURITIES – 1.8%			$	81,154
(Cost: $81,156)
TOTAL INVESTMENT SECURITIES – 99.3%			$	4,501,727
(Cost: $4,386,956)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7%				32,892
NET ASSETS – 100.0%			$	4,534,619

Notes to Schedule of Investments

* Not shown due to rounding.

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

2016 SEMIANNUAL REPORT 67

SCHEDULE OF INVESTMENTS IVY INTERNATIONAL CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

(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. At September 30, 2016 the total value of these securities amounted to $28,048 or 0.6% of net assets.

(C) Rate shown is the yield to maturity at September 30, 2016.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2016:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
Euro		320,400	U.S. Dollar		360,791	10–26–16	State Street Global Markets	$	488	$	—

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	4,391,531	$	—	$	—
Preferred Stocks		—		28,048		—
Rights		—		994		—
Short-Term Securities		—		81,154		—
Total	$	4,391,531	$	110,196	$	—
Forward Foreign Currency Contracts	$	—	$	488	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

Market Sector Diversification

(as a % of net assets)
Financials	17.3%
Health Care	14.6%
Consumer Discretionary	13.4%
Industrials	12.9%
Information Technology	8.9%
Consumer Staples	8.2%
Energy	7.9%
Materials	7.5%
Telecommunication Services	5.0%
Real Estate	1.8%
Other+	2.5%

+ Includes cash and other assets (net of liabilities), and cash equivalents

See Accompanying Notes to Financial Statements.

68 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY LARGE CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	99.7%
Information Technology	41.6%
Health Care	16.8%
Consumer Discretionary	14.9%
Industrials	11.5%
Energy	4.4%
Financials	3.9%
Consumer Staples	3.2%
Real Estate	2.1%
Materials	1.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.3%

Lipper Rankings

Category: Lipper Large-Cap Growth Funds	Rank	Percentile
1 Year	461/694		67
3 Year	219/628		35
5 Year	281/549		52
10 Year	149/398		38

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
MasterCard, Inc., Class A	Information Technology	Data Processing & Outsourced Services
Visa, Inc., Class A	Information Technology	Data Processing & Outsourced Services
Lam Research Corp.	Information Technology	Semiconductor Equipment
Amazon.com, Inc.	Consumer Discretionary	Internet & Direct Marketing Retail
Home Depot, Inc. (The)	Consumer Discretionary	Home Improvement Retail
Facebook, Inc., Class A	Information Technology	Internet Software & Services
Allergan plc	Health Care	Pharmaceuticals
Microsoft Corp.	Information Technology	Systems Software
Alphabet, Inc., Class A	Information Technology	Internet Software & Services
Philip Morris International, Inc.	Consumer Staples	Tobacco

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 69

SCHEDULE OF INVESTMENTS IVY LARGE CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Automotive Retail – 3.1%
AutoZone, Inc. (A)		31	$	23,972
O’Reilly Automotive, Inc. (A)		109		30,420
				54,392
Cable & Satellite – 1.9%
Comcast Corp., Class A		510		33,840
Footwear – 0.5%
NIKE, Inc., Class B		155		8,150
Home Improvement Retail – 3.7%
Home Depot, Inc. (The)		502		64,533
Internet & Direct Marketing Retail – 4.0%
Amazon.com, Inc. (A)		83		69,252
Restaurants – 1.0%
Starbucks Corp.		309		16,702
Specialty Stores – 0.7%
Ulta Salon, Cosmetics & Fragrance, Inc. (A)		51		12,185
Total Consumer Discretionary – 14.9%				259,054
Consumer Staples
Tobacco – 3.2%
Philip Morris International, Inc.		579		56,251
Total Consumer Staples – 3.2%				56,251
Energy
Oil & Gas Equipment & Services – 2.1%
Halliburton Co.		467		20,936
Schlumberger Ltd.		195		15,351
				36,287
Oil & Gas Exploration & Production – 2.3%
EOG Resources, Inc.		412		39,806
Total Energy – 4.4%				76,093
Financials
Financial Exchanges & Data – 2.2%
CME Group, Inc.		353		36,917
Investment Banking & Brokerage – 1.7%
Charles Schwab Corp. (The)		944		29,786
Total Financials – 3.9%				66,703
Health Care
Biotechnology – 7.5%
Alexion Pharmaceuticals, Inc. (A)		72		8,798

COMMON STOCKS (Continued)	Shares		Value
Biotechnology (Continued)
Biogen, Inc. (A)		70	$	21,917
Celgene Corp. (A)		457		47,749
Shire Pharmaceuticals Group plc ADR		222		42,959
Vertex Pharmaceuticals, Inc. (A)		97		8,416
				129,839
Health Care Equipment – 4.0%
DexCom, Inc. (A)		416		36,440
Edwards Lifesciences Corp. (A)		273		32,955
				69,395
Health Care Facilities – 0.7%
HCA Holdings, Inc. (A)		173		13,069
Pharmaceuticals – 4.6%
Allergan plc (A)		267		61,440
Bristol-Myers Squibb Co.		328		17,697
				79,137
Total Health Care – 16.8%				291,440
Industrials
Aerospace & Defense – 5.2%
Honeywell International, Inc.		267		31,176
Lockheed Martin Corp.		169		40,513
Northrop Grumman Corp.		87		18,528
				90,217
Industrial Conglomerates – 1.5%
Danaher Corp.		342		26,817
Railroads – 4.8%
Canadian Pacific Railway Ltd.		282		43,092
Union Pacific Corp.		404		39,422
				82,514
Total Industrials – 11.5%				199,548
Information Technology
Application Software – 4.5%
Adobe Systems, Inc. (A)		486		52,707
salesforce.com, Inc. (A)		363		25,907
				78,614
Data Processing & Outsourced Services – 10.9%
FleetCor Technologies, Inc. (A)		212		36,761
MasterCard, Inc., Class A		751		76,440
Visa, Inc., Class A		916		75,712
				188,913
Home Entertainment Software – 1.1%
Electronic Arts, Inc. (A)		226		19,326
Internet Software & Services – 9.1%
Alphabet, Inc., Class A (A)		71		56,847

COMMON STOCKS (Continued)	Shares		Value
Internet Software & Services (Continued)
Alphabet, Inc., Class C (A)		49	$	37,817
Facebook, Inc., Class A (A)		496		63,596
				158,260
Semiconductor Equipment – 5.0%
Applied Materials, Inc.		585		17,650
Lam Research Corp.		733		69,424
				87,074
Semiconductors – 5.3%
Microchip Technology, Inc.		885		55,003
NXP Semiconductors N.V. (A)		362		36,877
				91,880
Systems Software – 3.4%
Microsoft Corp.		1,010		58,182
Technology Hardware, Storage & Peripherals – 2.3%
Apple, Inc.		351		39,656
Total Information Technology – 41.6%				721,905
Materials
Diversified Chemicals – 1.3%
PPG Industries, Inc.		223		23,029
Total Materials – 1.3%				23,029
Real Estate
Specialized REITs – 2.1%
American Tower Corp., Class A		320		36,265
Total Real Estate – 2.1%				36,265
TOTAL COMMON STOCKS – 99.7%			$	1,730,288
(Cost: $1,226,718)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 0.3%
J.M. Smucker Co. (The),
0.700%, 10–3–16	$	6,387		6,387
Master Note – 0.1%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (C)		1,121		1,121
TOTAL SHORT-TERM SECURITIES – 0.4%			$	7,508
(Cost: $7,508)
TOTAL INVESTMENT SECURITIES – 100.1%			$	1,737,796
(Cost: $1,234,226)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)%				(1,580	)
NET ASSETS – 100.0%			$	1,736,216

Notes to Schedule of Investments

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

70 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY LARGE CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

(B) Rate shown is the yield to maturity at September 30, 2016.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	1,730,288	$	—	$	—
Short-Term Securities		—		7,508		—
Total	$	1,730,288	$	7,508	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 71

PORTFOLIO HIGHLIGHTS IVY LIMITED-TERM BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Bonds	94.9%
Corporate Debt Securities	62.4%
United States Government and Government Agency Obligations	29.2%
Municipal Bonds – Taxable	2.0%
Asset-Backed Securities	1.0%
Mortgage-Backed Securities	0.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	5.1%

Lipper Rankings

Category: Lipper Short-Intermediate Investment Grade Debt Funds	Rank	Percentile
1 Year	84/190		44
3 Year	94/155		61
5 Year	88/111		79
10 Year	51/85		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.

Quality Weightings

Investment Grade	87.3%
AAA	0.7%
AA	34.8%
A	22.2%
BBB	29.6%
Non-Investment Grade	7.6%
BB	1.6%
B	0.4%
CCC	0.4%
Non-rated	5.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	5.1%

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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

72 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

ASSET-BACKED SECURITIES	Principal		Value
American Airlines Class AA Pass Through Certificates, Series 2016-2,
3.200%, 6–15–28	$	5,000	$	5,125
SBA Tower Trust, Series 2013-1C (GTD by SBA Guarantor LLC and SBA Holdings LLC),
2.240%, 4–16–18 (A)		8,035		8,060
SBA Tower Trust, Series 2016-1 (GTD by SBA Guarantor LLC and SBA Holdings LLC),
2.877%, 7–15–21 (A)		5,500		5,593
TOTAL ASSET-BACKED SECURITIES – 1.0%			$	18,778
(Cost: $18,548)
CORPORATE DEBT SECURITIES
Consumer Discretionary
Apparel Retail – 0.2%
TJX Cos., Inc. (The),
2.750%, 6–15–21		3,500		3,678
Apparel, Accessories & Luxury Goods – 1.0%
Hanesbrands, Inc.,
4.625%, 5–15–24 (A)		7,650		7,851
LVMH Moet Hennessy – Louis Vuitton,
1.625%, 6–29–17 (A)		10,275		10,293
				18,144
Automobile Manufacturers – 1.4%
BMW U.S. Capital LLC,
2.000%, 4–11–21 (A)		8,500		8,596
General Motors Co.,
4.875%, 10–2–23		10,500		11,381
Toyota Motor Credit Corp.,
2.000%, 10–24–18		5,125		5,200
				25,177
Cable & Satellite – 1.3%
Comcast Corp. (GTD by Comcast Cable Communications and NBCUniversal):
1.625%, 1–15–22		3,950		3,917
2.350%, 1–15–27		3,000		2,954
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc.,
5.875%, 10–1–19		1,000		1,119
Lender Processing Services, Inc. and Black Knight Lending Solutions, Inc.,
5.750%, 4–15–23		4,058		4,271
Time Warner Cable, Inc.,
5.850%, 5–1–17		6,830		7,001
Time Warner Co., Inc. (GTD by Time Warner, Inc.),
7.250%, 10–15–17		4,000		4,237
				23,499

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
General Merchandise Stores – 0.8%
Dollar General Corp.:
4.125%, 7–15–17	$	12,500	$	12,782
1.875%, 4–15–18		3,000		3,017
				15,799
Internet & Direct Marketing Retail – 0.8%
Amazon.com, Inc.:
1.200%, 11–29–17		8,000		8,007
3.800%, 12–5–24		6,305		6,992
				14,999
Total Consumer Discretionary – 5.5%				101,296
Consumer Staples
Brewers – 1.0%
Anheuser-Busch InBev S.A./N.V.,
3.300%, 2–1–23		18,225		19,222
Distillers & Vintners – 0.5%
Beam, Inc.,
1.750%, 6–15–18		10,000		10,022
Drug Retail – 0.9%
CVS Health Corp.:
2.250%, 12–5–18		11,000		11,197
2.125%, 6–1–21		6,050		6,112
				17,309
Food Distributors – 0.1%
ConAgra Foods, Inc.,
5.819%, 6–15–17		2,500		2,571
Food Retail – 0.3%
Kroger Co. (The),
1.500%, 9–30–19		5,250		5,239
Packaged Foods & Meats – 1.8%
Hershey Co. (The),
1.600%, 8–21–18		8,860		8,949
Kraft Heinz Foods Co.,
4.875%, 2–15–25 (A)		12,750		14,064
Tyson Foods, Inc. (GTD by Tyson Fresh Meats, Inc.),
2.650%, 8–15–19		9,450		9,689
				32,702
Soft Drinks – 0.4%
Bottling Group LLC,
5.125%, 1–15–19		4,059		4,402
PepsiCo, Inc.,
3.100%, 7–17–22		2,082		2,228
				6,630
Total Consumer Staples – 5.0%				93,695
Energy
Integrated Oil & Gas – 0.2%
Statoil ASA (GTD by Statoil Petroleum AS),
1.950%, 11–8–18		3,500		3,534

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Equipment & Services – 0.9%
Enterprise Products Operating LLC (GTD by Enterprise Products Partners L.P.),
6.500%, 1–31–19	$	8,250	$	9,151
Schlumberger Investment S.A. (GTD by Schlumberger Ltd.),
1.250%, 8–1–17 (A)		5,000		5,000
Schlumberger Norge A.S. (GTD by Schlumberger Ltd.),
1.250%, 8–1–17 (A)		2,435		2,433
				16,584
Oil & Gas Exploration & Production – 2.0%
BP Capital Markets plc (GTD by BP plc),
1.674%, 2–13–18		13,500		13,552
ConocoPhillips Co. (GTD by ConocoPhillips),
3.350%, 11–15–24		4,000		4,097
EQT Corp.,
8.125%, 6–1–19		11,520		13,167
Exxon Mobil Corp.,
0.890%, 3–15–17 (B)		6,245		6,248
				37,064
Oil & Gas Refining & Marketing – 0.6%
PBF Holding Co. LLC,
8.250%, 2–15–20		11,000		11,346
Oil & Gas Storage & Transportation – 1.4%
El Paso Corp.,
7.000%, 6–15–17		7,550		7,813
EnLink Midstream Partners L.P.,
4.850%, 7–15–26		4,000		4,028
Kinder Morgan Energy Partners L.P.,
5.950%, 2–15–18		7,000		7,361
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.),
4.400%, 4–1–21		5,700		6,115
				25,317
Total Energy – 5.1%				93,845
Financials
Asset Management & Custody Banks – 0.9%
Ares Capital Corp.,
3.875%, 1–15–20		16,515		17,082
Consumer Finance – 4.6%
American Express Co.,
7.000%, 3–19–18		10,000		10,786
American Honda Finance Corp.:
1.500%, 9–11–17 (A)		6,000		6,019
7.625%, 10–1–18 (A)		5,000		5,610
Capital One Financial Corp.,
6.750%, 9–15–17		9,000		9,427
Discover Financial Services,
3.950%, 11–6–24		12,875		13,187

2016 SEMIANNUAL REPORT 73

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Finance (Continued)
Ford Motor Credit Co. LLC,
5.000%, 5–15–18	$	10,000	$	10,496
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.):
2.400%, 5–9–19		5,115		5,133
3.500%, 7–10–19		4,500		4,636
4.200%, 3–1–21		6,500		6,841
Hyundai Capital America,
2.875%, 8–9–18 (A)		5,525		5,639
Total System Services, Inc.,
3.800%, 4–1–21		6,374		6,764
				84,538
Diversified Banks – 7.8%
Ally Financial, Inc.,
5.500%, 2–15–17		9,265		9,381
Banco del Estado de Chile,
1.117%, 3–13–17 (B)		8,500		8,502
Bank of America Corp.,
2.625%, 4–19–21		8,500		8,636
Bank of Montreal,
1.126%, 6–6–17 (B)		8,500		8,495
Bank of New York Mellon Corp. (The),
2.300%, 9–11–19		12,750		13,044
BB&T Corp.,
2.050%, 5–10–21		6,500		6,568
Branch Banking and Trust Co.,
1.450%, 5–10–19		10,875		10,883
Huntington Bancshares, Inc.,
3.150%, 3–14–21		6,500		6,739
Huntington National Bank,
2.200%, 11–6–18		4,000		4,050
Mitsubishi UFJ Financial Group, Inc.,
2.190%, 9–13–21		11,500		11,471
Mizuho Financial Group, Inc.,
2.273%, 9–13–21		14,000		13,955
Sumitomo Mitsui Financial Group, Inc.,
2.058%, 7–14–21		4,250		4,216
U.S. Bancorp,
3.100%, 4–27–26		4,000		4,134
Wachovia Corp.,
5.750%, 2–1–18		13,500		14,263
Wells Fargo & Co.,
3.000%, 2–19–25		9,000		9,145
Wells Fargo Bank N.A.,
1.040%, 2–15–17 (B)		11,100		11,103
				144,585
Investment Banking & Brokerage – 2.4%
Goldman Sachs Group, Inc. (The):
2.375%, 1–22–18		4,000		4,041
2.750%, 9–15–20		3,200		3,278
2.350%, 11–15–21		6,700		6,687
4.000%, 3–3–24		4,552		4,890
Merrill Lynch & Co., Inc.,
6.400%, 8–28–17		11,000		11,478
Morgan Stanley:
2.800%, 6–16–20		7,365		7,556
2.500%, 4–21–21		4,750		4,796
3.000%, 5–31–23 (B)		1,700		1,728
				44,454

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Life & Health Insurance – 1.7%
Athene Global Funding,
2.875%, 10–23–18 (A)	$	15,450	$	15,415
New York Life Global Funding,
1.550%, 11–2–18 (A)		6,500		6,533
Principal Life Global Funding II,
2.625%, 11–19–20 (A)		9,500		9,736
				31,684
Other Diversified Financial Services – 4.6%
Citigroup, Inc.:
1.300%, 11–15–16		5,215		5,216
2.650%, 10–26–20		9,000		9,194
2.700%, 3–30–21		5,893		6,025
Fidelity National Financial, Inc.,
6.600%, 5–15–17		12,215		12,560
Fidelity National Information Services, Inc.,
2.850%, 10–15–18		5,000		5,131
JPMorgan Chase & Co.:
6.000%, 1–15–18		8,500		8,981
2.295%, 8–15–21		7,000		7,016
4.350%, 8–15–21		3,820		4,195
3.000%, 2–27–30		3,390		3,385
JPMorgan Chase Bank N.A.,
1.311%, 9–21–18 (B)		8,500		8,506
USAA Capital Corp.,
2.450%, 8–1–20 (A)		13,865		14,261
				84,470
Property & Casualty Insurance – 1.9%
ACE INA Holdings, Inc. (GTD by ACE Ltd.),
2.300%, 11–3–20		5,500		5,643
Berkshire Hathaway Finance Corp.,
1.700%, 3–15–19		4,550		4,592
Berkshire Hathaway, Inc.:
1.900%, 1–31–17		4,000		4,012
2.100%, 8–14–19		7,375		7,536
2.750%, 3–15–23		13,260		13,786
				35,569
Regional Banks – 0.8%
PNC Bank N.A.,
2.400%, 10–18–19		5,500		5,630
PNC Funding Corp. (GTD by PNC Financial Services Group, Inc.),
6.700%, 6–10–19		8,500		9,664
				15,294
Specialized Finance – 0.8%
ADOP Co.,
6.625%, 10–1–17 (A)		4,000		4,160
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.,
3.480%, 6–1–19 (A)		10,625		10,926
				15,086
Total Financials – 25.5%				472,762

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care
Biotechnology – 0.4%
Amgen, Inc.:
2.125%, 5–15–17	$	5,500	$	5,532
1.250%, 5–22–17		1,950		1,951
				7,483
Health Care Supplies – 1.5%
Catholic Health Initiatives,
2.600%, 8–1–18		11,871		12,098
Medtronic, Inc.,
3.500%, 3–15–25		12,350		13,307
Stryker Corp.,
2.625%, 3–15–21		3,025		3,118
				28,523
Pharmaceuticals – 0.8%
AbbVie, Inc.,
2.500%, 5–14–20		5,000		5,104
Merck & Co., Inc.,
1.100%, 1–31–18		4,925		4,930
Mylan, Inc.,
1.350%, 11–29–16		4,291		4,293
				14,327
Total Health Care – 2.7%				50,333
Industrials
Aerospace & Defense – 2.4%
BAE Systems Holdings, Inc.:
6.375%, 6–1–19 (A)		6,393		7,126
3.850%, 12–15–25 (A)		5,500		5,852
BAE Systems plc,
4.750%, 10–11–21 (A)		4,300		4,782
Exelis, Inc.:
4.250%, 10–1–16		12,406		12,406
5.550%, 10–1–21		2,566		2,924
General Dynamics Corp.,
1.875%, 8–15–23		2,950		2,927
TransDigm Group, Inc.,
7.500%, 7–15–21		7,967		8,445
				44,462
Airlines – 0.6%
Southwest Airlines Co.:
5.125%, 3–1–17		5,000		5,078
2.650%, 11–5–20		6,000		6,165
				11,243
Environmental & Facilities Services – 1.7%
Republic Services, Inc.,
3.800%, 5–15–18		14,690		15,260
Waste Management, Inc. (GTD by Waste Management Holdings, Inc.):
6.100%, 3–15–18		10,000		10,695
4.750%, 6–30–20		1,675		1,862
7.100%, 8–1–26		2,450		3,315
				31,132

74 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Industrial Conglomerates – 0.9%
General Electric Capital Corp.,
5.012%, 1–1–24	$	14,657	$	16,344
Total Industrials – 5.6%				103,181
Information Technology
Application Software – 0.8%
Michael Baker International LLC,
8.250%, 10–15–18 (A)		6,792		6,809
NVIDIA Corp.,
2.200%, 9–16–21		8,500		8,526
				15,335
Communications Equipment – 0.6%
Cisco Systems, Inc.:
2.200%, 2–28–21		4,050		4,144
2.600%, 2–28–23		5,920		6,109
Harris Corp.,
2.700%, 4–27–20		1,094		1,115
				11,368
Data Processing & Outsourced Services – 1.7%
Alliance Data Systems Corp.:
5.250%, 12–1–17 (A)		6,600		6,732
6.375%, 4–1–20 (A)		6,000		6,112
Visa, Inc.,
2.800%, 12–14–22		18,500		19,396
				32,240
Home Entertainment Software – 0.2%
Activision Blizzard, Inc.,
2.300%, 9–15–21 (A)		4,000		4,010
Semiconductor Equipment – 0.5%
Lam Research Corp.,
2.800%, 6–15–21		8,500		8,725
Semiconductors – 0.7%
Intel Corp.,
2.450%, 7–29–20		4,000		4,139
Samsung Electronics America, Inc. (GTD by Samsung Electronics Co. Ltd.),
1.750%, 4–10–17 (A)		8,500		8,520
				12,659
Systems Software – 1.2%
CA, Inc.,
5.375%, 12–1–19		8,297		9,162
Microsoft Corp.:
2.000%, 11–3–20		8,000		8,172
2.000%, 8–8–23		4,000		3,996
				21,330
Technology Hardware, Storage & Peripherals – 0.7%
Apple, Inc.,
1.550%, 2–7–20		13,175		13,293
Total Information Technology – 6.4%				118,960

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Materials
Diversified Chemicals – 0.4%
Dow Chemical Co. (The),
4.250%, 11–15–20	$	7,049	$	7,646
Specialty Chemicals – 0.7%
Methanex Corp.,
3.250%, 12–15–19		13,132		12,983
Total Materials – 1.1%				20,629
Real Estate
Specialized REITs – 0.5%
Crown Castle International Corp.:
2.250%, 9–1–21		3,000		2,998
4.875%, 4–15–22		3,099		3,457
5.250%, 1–15–23		2,745		3,108
				9,563
Total Real Estate – 0.5%				9,563
Telecommunication Services
Integrated Telecommunication Services – 0.8%
AT&T, Inc.:
5.875%, 10–1–19		3,900		4,363
5.200%, 3–15–20		3,000		3,324
3.600%, 2–17–23		6,915		7,291
				14,978
Wireless Telecommunication Service – 2.1%
American Tower Corp.:
3.300%, 2–15–21		2,500		2,614
5.900%, 11–1–21		12,200		14,231
2.250%, 1–15–22		12,500		12,475
3.375%, 10–15–26		5,350		5,426
Crown Castle Towers LLC,
3.222%, 5–15–22 (A)		4,830		4,980
				39,726
Total Telecommunication Services – 2.9%				54,704
Utilities
Electric Utilities – 1.1%
Emera U.S. Finance L.P. (GTD by Emera U.S. Holdings, Inc.),
2.150%, 6–15–19 (A)		4,000		4,043
Entergy Mississippi, Inc.,
2.850%, 6–1–28		5,875		6,011
Entergy Texas, Inc.,
2.550%, 6–1–21		7,225		7,431
National Rural Utilities Cooperative Finance Corp.,
1.650%, 2–8–19		3,600		3,628
				21,113
Multi-Utilities – 1.0%
Dominion Resources, Inc.,
6.400%, 6–15–18		11,118		11,989

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Multi-Utilities (Continued)
Dominion Resources, Inc., Series A,
1.400%, 9–15–17	$	5,850	$	5,848
				17,837
Total Utilities – 2.1%				38,950
TOTAL CORPORATE DEBT SECURITIES – 62.4%			$	1,157,918
(Cost: $1,138,090)
MORTGAGE-BACKED SECURITIES
Non-Agency REMIC/CMO – 0.3%
Bear Stearns Deutsche Bank Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-AFR1, Class C,
5.097%, 9–15–27 (A)		2,500		2,748
CFCRE Commercial Mortgage Trust, Series 2015-RUM, Class B,
2.658%, 7–15–30 (A)(B)		3,942		3,861
				6,609
TOTAL MORTGAGE-BACKED SECURITIES – 0.3%			$	6,609
(Cost: $6,672)
MUNICIPAL BONDS – TAXABLE
California – 1.5%
Alameda Corridor Trans Auth, Taxable Sr Lien Rev Bonds, Ser 1999C,
6.500%, 10–1–19		7,170		7,775
CA Various Purp GO Bonds,
7.700%, 11–1–30		10,050		12,371
The Regents of the Univ of CA, Gen Rev Bonds, Ser 2013AH,
1.796%, 7–1–19		7,615		7,719
				27,865
New York – 0.5%
NYC GO Bonds, Fiscal 2017 Ser A-2,
2.460%, 8–1–26		9,920		9,943
TOTAL MUNICIPAL BONDS – TAXABLE – 2.0%			$	37,808
(Cost: $37,777)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations – 3.0%
Federal Home Loan Bank:
4.780%, 1–25–17		761		761
1.900%, 4–12–23		12,270		12,328
2.750%, 3–2–26		10,000		10,005

2016 SEMIANNUAL REPORT 75

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Agency Obligations (Continued)
2.500%, 4–27–26	$	13,735	$	13,774
1.700%, 7–25–31		18,500		18,386
				55,254
Mortgage-Backed Obligations – 19.9%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO:
2.822%, 6–25–21 (A)(B)		9,509		9,566
3.669%, 2–25–22 (A)(B)		4,000		3,937
4.000%, 6–15–26		11,994		12,897
2.125%, 8–28–31		4,125		4,125
5.000%, 12–15–34		479		534
5.045%, 7–25–44 (A)(B)		5,870		6,134
5.116%, 8–25–44 (A)(B)		6,990		7,723
4.302%, 9–25–44 (A)(B)		8,200		8,530
4.490%, 12–25–44 (A)(B)		17,000		18,548
3.883%, 2–25–45 (A)(B)		8,500		8,760
4.492%, 1–25–46 (A)(B)		5,958		6,433
4.752%, 11–25–46 (A)(B)		8,000		8,817
5.341%, 2–25–47 (A)(B)		5,120		5,728
4.436%, 7–25–48 (A)(B)		5,200		5,236
4.572%, 12–25–48 (A)(B)		18,196		19,595
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates:
5.500%, 4–1–20		371		390
3.000%, 8–1–28		10,600		11,150
3.000%, 9–1–28		10,535		11,125
3.500%, 1–1–29		1,954		2,066
3.000%, 1–1–33		6,972		7,395
3.000%, 1–15–42		3,789		3,923
3.000%, 5–15–44		3,439		3,599
Federal National Mortgage Association Agency REMIC/CMO:
5.500%, 12–25–17		430		437
3.510%, 4–25–29		11,750		11,903
2.375%, 2–24–31		8,500		8,506
2.000%, 4–25–39		8,338		8,361
2.000%, 6–25–39		21,581		21,849
2.000%, 4–25–40		5,997		6,042
2.500%, 11–25–45		16,178		16,566
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
5.500%, 9–1–17		325		327
0.875%, 10–26–17		15,000		15,024
4.514%, 12–1–19		10,218		11,024
4.643%, 7–1–20		9,699		10,527
4.380%, 6–1–21		14,105		15,679
5.500%, 10–1–21		1,490		1,576
5.450%, 10–18–21		8,028		8,042
5.500%, 2–1–22		769		814
6.000%, 7–1–22		612		664
3.500%, 8–1–26		5,162		5,475

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
2.000%, 10–25–41	$	15,452	$	15,566
2.000%, 12–25–42		2,429		2,474
2.500%, 7–25–45		3,339		3,427
2.500%, 9–25–45		5,296		5,443
2.500%, 12–25–45		15,752		16,126
Government National Mortgage Association Agency REMIC/CMO,
2.000%, 3–16–42		8,256		8,240
Government National Mortgage Association Fixed Rate Pass-Through Certificates,
3.500%, 4–20–34		8,770		9,153
				369,456
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 22.9%			$	424,710
(Cost: $421,096)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 6.3%
U.S. Treasury Notes:
0.625%, 9–30–17		50,000		49,977
2.750%, 2–28–18		35,000		35,990
1.375%, 8–31–20		20,000		20,245
2.000%, 8–15–25		10,000		10,355
				116,567
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 6.3%			$	116,567
(Cost: $115,616)
SHORT-TERM SECURITIES
Commercial Paper (C) – 3.4%
Becton Dickinson & Co.,
0.840%, 11–15–16		3,971		3,967
BorgWarner, Inc.,
0.700%, 10–6–16		10,000		9,999
Campbell Soup Co.,
0.590%, 10–3–16		7,500		7,499
DTE Energy Co. (GTD by Detroit Edison Co.),
0.610%, 10–6–16		7,000		6,999
Ecolab, Inc.,
0.700%, 10–6–16		5,000		4,999
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.),
0.790%, 10–19–16		5,000		4,998
NBCUniversal Enterprise, Inc.:
0.770%, 10–12–16		5,000		4,999
0.830%, 11–9–16		5,000		4,995

SHORT–TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (C) (Continued)
Northern Illinois Gas Co.:
0.420%, 10–3–16	$	6,191	$	6,191
0.760%, 10–11–16		5,000		4,999
River Fuel Trust #1 (GTD by Bank of Nova Scotia),
0.580%, 10–31–16		2,500		2,499
				62,144
Master Note – 0.1%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (D)		2,388		2,388
Municipal Obligations – 0.8%
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008A (GTD by U.S. Bank N.A.),
0.800%, 10–7–16 (D)		5,000		5,000
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser A (Taxable), (GTD by Wells Fargo Bank N.A.),
0.770%, 10–7–16		6,000		6,000
Santa Clara Cnty Fin Auth, Var Rate Rev Bonds, El Camino Hosp, Ser 2009A (GTD by Wells Fargo Bank N.A.),
0.810%, 10–7–16 (D)		4,251		4,251
				15,251
TOTAL SHORT-TERM SECURITIES – 4.3%			$	79,783
(Cost: $79,785)
TOTAL INVESTMENT SECURITIES – 99.2%			$	1,842,173
(Cost: $1,817,584)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.8%				14,455
NET ASSETS – 100.0%			$	1,856,628

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. At September 30, 2016 the total value of these securities amounted to $314,771 or 17.0% of net assets.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.

76 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

(C) Rate shown is the yield to maturity at September 30, 2016.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Asset-Backed Securities	$	—	$	18,778	$	—
Corporate Debt Securities		—		1,157,918		—
Mortgage-Backed Securities		—		6,609		—
Municipal Bonds		—		37,808		—
United States Government Agency Obligations		—		424,710		—
United States Government Obligations		—		116,567		—
Short-Term Securities		—		79,783		—
Total	$	—	$	1,842,173	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

REMIC = Real Estate Mortgage Investment Conduit

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 77

PORTFOLIO HIGHLIGHTS IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Ivy Managed International Opportunities Fund

Ivy International Core Equity Fund, Class I	29.9	%
Ivy Global Growth Fund, Class I	25.0	%
Ivy European Opportunities Fund, Class I	20.0	%
Ivy Global Income Allocation Fund, Class I	15.0	%
Ivy Emerging Markets Equity Fund, Class I	10.0	%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.1	%

The percentages of investments in the underlying funds may not currently be within the target allocation ranges disclosed in the Fund’s prospectus due to market movements; these percentages are expected to change over time, and deviation from the target allocation ranges due to market movements is permitted by the prospectus.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

78 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy Emerging Markets Equity Fund, Class I		1,204	$	19,380
Ivy European Opportunities Fund, Class I		1,410		38,761
Ivy Global Growth Fund, Class I		1,178		48,451
Ivy Global Income Allocation Fund, Class I		2,001		29,070
Ivy International Core Equity Fund, Class I		3,416		58,141
TOTAL AFFILIATED MUTUAL FUNDS – 99.9%			$	193,803
(Cost: $159,492)

SHORT-TERM SECURITIES	Principal		Value
Master Note – 0.2%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (A)	$	301	$	301
TOTAL SHORT-TERM SECURITIES – 0.2%			$	301
(Cost: $301)
TOTAL INVESTMENT SECURITIES – 100.1%			$	194,104
(Cost: $159,793)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)%				(186	)
NET ASSETS – 100.0%			$	193,918

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Affiliated Mutual Funds	$	193,803	$	—	$	—
Short-Term Securities		—		301		—
Total	$	193,803	$	301	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 79

PORTFOLIO HIGHLIGHTS IVY MICRO CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	93.1%
Information Technology	29.3%
Health Care	23.6%
Consumer Discretionary	15.0%
Telecommunication Services	6.7%
Industrials	6.2%
Materials	3.3%
Energy	3.3%
Financials	2.5%
Consumer Staples	1.8%
Real Estate	1.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	6.9%

Lipper Rankings

Category: Lipper Small-Cap Growth Funds	Rank	Percentile
1 Year	178/563	32
3 Year	346/502	69
5 Year	160/446	36

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
8x8, Inc.	Telecommunication Services	Integrated Telecommunication Services
SPS Commerce, Inc.	Information Technology	Internet Software & Services
Nautilus Group, Inc. (The)	Consumer Discretionary	Leisure Products
Tile Shop Holdings, Inc.	Consumer Discretionary	Home Improvement Retail
Aerie Pharmaceuticals, Inc.	Health Care	Pharmaceuticals
LogMeIn, Inc.	Information Technology	Internet Software & Services
Flotek Industries, Inc.	Materials	Specialty Chemicals
Cornerstone OnDemand, Inc.	Information Technology	Internet Software & Services
MYR Group, Inc.	Industrials	Construction & Engineering
Zix Corp.	Information Technology	Application Software

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

80 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MICRO CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 2.3%
Motorcar Parts of America, Inc. (A)		136	$	3,900
Broadcasting – 1.5%
Entravision Communications Corp.		337		2,572
Home Improvement Retail – 3.3%
Tile Shop Holdings, Inc. (A)		347		5,736
Leisure Products – 3.4%
Nautilus Group, Inc. (The) (A)		254		5,780
Restaurants – 1.7%
Kona Grill, Inc. (A)		235		2,955
Specialty Stores – 2.8%
DAVIDsTEA, Inc. (A)		77		949
Sportsman’s Warehouse Holdings, Inc. (A)		368		3,873
				4,822
Total Consumer Discretionary – 15.0%				25,765
Consumer Staples
Distillers & Vintners – 0.1%
MGP Ingredients, Inc.		5		221
Packaged Foods & Meats – 1.7%
Inventure Foods, Inc. (A)		307		2,886
Total Consumer Staples – 1.8%				3,107
Energy
Oil & Gas Equipment & Services – 1.4%
Natural Gas Services Group, Inc. (A)		97		2,384
Oil & Gas Exploration & Production – 1.9%
Clayton Williams Energy, Inc. (A)		2		171
Earthstone Energy, Inc. (A)		92		790
Resolute Energy Corp. (A)		29		764
Rice Energy, Inc. (A)		148		1,625
				3,350
Total Energy – 3.3%				5,734
Financials
Mortgage REITs – 2.5%
American Capital Mortgage Investment Corp.		51		868
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		147		3,433
				4,301
Total Financials – 2.5%				4,301
Health Care
Biotechnology – 1.0%
Natera, Inc. (A)		150		1,672

COMMON STOCKS (Continued)	Shares		Value
Health Care Equipment – 6.9%
AxoGen, Inc. (A)		145	$	1,307
Entellus Medical, Inc. (A)		46		1,026
K2M Group Holdings, Inc. (A)		229		4,070
Oxford Immunotec Global plc (A)		188		2,363
Tactile Systems Technology, Inc. (A)		166		3,099
				11,865
Health Care Supplies – 4.8%
Endologix, Inc. (A)		325		4,161
ICU Medical, Inc. (A)		32		3,994
				8,155
Health Care Technology – 4.5%
Evolent Health, Inc., Class A (A)		155		3,818
Omnicell, Inc. (A)		104		3,985
				7,803
Pharmaceuticals – 6.4%
Aerie Pharmaceuticals, Inc. (A)		140		5,295
Intersect ENT, Inc. (A)		115		1,820
Intra-Cellular Therapies, Inc. (A)		69		1,058
Novan, Inc. (A)		108		2,169
Revance Therapeutics, Inc. (A)		44		716
				11,058
Total Health Care – 23.6%				40,553
Industrials
Building Products – 2.9%
American Woodmark Corp. (A)		28		2,280
PGT, Inc. (A)		253		2,704
				4,984
Construction & Engineering – 2.8%
MYR Group, Inc. (A)		156		4,705
Trucking – 0.5%
YRC Worldwide, Inc. (A)		73		904
Total Industrials – 6.2%				10,593
Information Technology
Application Software – 2.5%
Zix Corp. (A)		1,049		4,300
Communications Equipment – 1.8%
Oclaro, Inc. (A)		363		3,107
Electronic Manufacturing Services – 1.7%
Mercury Computer Systems, Inc. (A)		120		2,956
Internet Software & Services – 17.8%
2U, Inc. (A)		47		1,792
comScore, Inc. (A)		117		3,596
Cornerstone OnDemand, Inc. (A)		111		5,082
LogMeIn, Inc.		57		5,186
Mimecast Ltd. (A)		219		4,190
Q2 Holdings, Inc. (A)		147		4,219
SPS Commerce, Inc. (A)		88		6,481
				30,546

COMMON STOCKS (Continued)	Shares		Value
Semiconductor Equipment – 2.5%
PDF Solutions, Inc. (A)		236	$	4,288
Semiconductors – 2.2%
NVE Corp.		63		3,725
Systems Software – 0.8%
SecureWorks Corp., Class A (A)		114		1,421
Total Information Technology – 29.3%				50,343
Materials
Specialty Chemicals – 3.3%
Flotek Industries, Inc. (A)(B)		27		393
Flotek Industries, Inc. (A)		356		5,172
				5,565
Total Materials – 3.3%				5,565
Real Estate
Health Care REITs – 1.4%
Community Healthcare Trust, Inc.		112		2,449
Total Real Estate – 1.4%				2,449
Telecommunication Services
Integrated Telecommunication Services – 6.5%
8x8, Inc. (A)		459		7,089
GTT Communications, Inc. (A)		170		4,005
				11,094
Wireless Telecommunication Service – 0.2%
RingCentral, Inc., Class A (A)		15		357
Total Telecommunication Services – 6.7%				11,451
TOTAL COMMON STOCKS – 93.1%			$	159,861
(Cost: $125,801)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 5.6%
Kroger Co. (The),
0.630%, 10–3–16	$	5,000		4,999
Northern Illinois Gas Co.,
0.420%, 10–3–16		4,656		4,656
				9,655
Master Note – 2.2%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (D)		3,738		3,738
TOTAL SHORT-TERM SECURITIES – 7.8%			$	13,393
(Cost: $13,394)
TOTAL INVESTMENT SECURITIES – 100.9%			$	173,254
(Cost: $139,195)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.9)%				(1,560	)
NET ASSETS – 100.0%			$	171,694

2016 SEMIANNUAL REPORT 81

SCHEDULE OF INVESTMENTS IVY MICRO CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Notes to Schedule of Investments

(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. At September 30, 2016 the total value of these securities amounted to $393 or 0.2% of net assets.

(C) Rate shown is the yield to maturity at September 30, 2016.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	159,861	$	—	$	—
Short-Term Securities		—		13,393		—
Total	$	159,861	$	13,393	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

82 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY MID CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	99.0%
Information Technology	23.4%
Consumer Discretionary	19.9%
Health Care	18.1%
Industrials	15.6%
Financials	9.2%
Consumer Staples	6.7%
Energy	4.8%
Materials	1.3%
Purchased Options	0.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.8%

Lipper Rankings

Category: Lipper Mid-Cap Growth Funds	Rank	Percentile
1 Year	159/400		40
3 Year	274/363		76
5 Year	249/319		78
10 Year	69/229		30

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
Intuitive Surgical, Inc.	Health Care	Health Care Equipment
Zoetis, Inc.	Health Care	Pharmaceuticals
Fastenal Co.	Industrials	Trading Companies & Distributors
Microchip Technology, Inc.	Information Technology	Semiconductors
CoStar Group, Inc.	Industrials	Research & Consulting Services
Electronic Arts, Inc.	Information Technology	Home Entertainment Software
Northern Trust Corp.	Financials	Asset Management & Custody Banks
CME Group, Inc.	Financials	Financial Exchanges & Data
Mead Johnson Nutrition Co.	Consumer Staples	Packaged Foods & Meats
Pandora Media, Inc.	Information Technology	Internet Software & Services

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 83

SCHEDULE OF INVESTMENTS IVY MID CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel Retail – 1.1%
DSW, Inc., Class A		1,416	$	29,004
Apparel, Accessories & Luxury Goods – 3.5%
Burberry Group plc (A)		1,913		34,201
Kate Spade & Co. (B)		1,605		27,490
lululemon athletica, Inc. (B)		506		30,854
				92,545
Auto Parts & Equipment – 1.6%
BorgWarner, Inc.		1,200		42,233
Homebuilding – 1.6%
D.R. Horton, Inc.		1,434		43,310
Homefurnishing Retail – 2.8%
Bed Bath & Beyond, Inc.		885		38,153
Williams-Sonoma, Inc.		725		37,040
				75,193
Leisure Products – 3.6%
Mattel, Inc. (C)		1,639		49,629
Polaris Industries, Inc.		611		47,350
				96,979
Restaurants – 2.2%
Dunkin’ Brands Group, Inc. (C)		1,139		59,303
Specialty Stores – 3.5%
Tiffany & Co.		692		50,267
Tractor Supply Co.		664		44,724
				94,991
Total Consumer Discretionary – 19.9%				533,558
Consumer Staples
Food Retail – 1.7%
Whole Foods Market, Inc.		1,600		45,354
Packaged Foods & Meats – 5.0%
Blue Buffalo Pet Products, Inc. (B)		1,337		31,765
Hain Celestial Group, Inc. (The) (B)		1,101		39,161
Mead Johnson Nutrition Co. (C)		791		62,461
				133,387
Total Consumer Staples – 6.7%				178,741
Energy
Oil & Gas Exploration & Production – 4.8%
Cabot Oil & Gas Corp.		1,079		27,837
Cimarex Energy Co.		201		27,048
Continental Resources, Inc. (B)		772		40,115
Noble Energy, Inc.		954		34,081
				129,081
Total Energy – 4.8%				129,081
Financials
Asset Management & Custody Banks – 3.4%
Northern Trust Corp.		965		65,603

COMMON STOCKS (Continued)	Shares		Value
Asset Management & Custody Banks (Continued)
Oaktree Capital Group LLC		601	$	25,494
				91,097
Financial Exchanges & Data – 2.4%
CME Group, Inc.		626		65,481
Regional Banks – 3.4%
First Republic Bank		653		50,380
Signature Bank (B)		341		40,414
				90,794
Total Financials – 9.2%				247,372
Health Care
Biotechnology – 4.1%
ACADIA Pharmaceuticals, Inc. (B)		657		20,914
Alkermes plc (B)		942		44,308
BioMarin Pharmaceutical, Inc. (B)		473		43,745
				108,967
Health Care Distributors – 1.0%
Henry Schein, Inc. (B)		158		25,676
Health Care Equipment – 5.3%
Edwards Lifesciences Corp. (B)		476		57,443
Intuitive Surgical, Inc. (B)		117		85,017
				142,460
Health Care Facilities – 0.7%
Acadia Healthcare Co., Inc. (B)		402		19,926
Health Care Services – 2.3%
Diplomat Pharmacy, Inc. (B)		712		19,951
Laboratory Corp. of America Holdings (B)		302		41,573
				61,524
Health Care Supplies – 1.6%
Align Technology, Inc. (B)		454		42,579
Pharmaceuticals – 3.1%
Zoetis, Inc.		1,626		84,555
Total Health Care – 18.1%				485,687
Industrials
Air Freight & Logistics – 2.0%
Expeditors International of Washington, Inc.		1,054		54,327
Building Products – 2.6%
A. O. Smith Corp.		263		25,979
Fortune Brands Home & Security, Inc. (C)		734		42,616
				68,595
Construction Machinery & Heavy Trucks – 0.5%
Westinghouse Air Brake Technologies Corp.		169		13,796

COMMON STOCKS (Continued)	Shares		Value
Electrical Components & Equipment – 0.9%
Generac Holdings, Inc. (B)		670	$	24,328
Industrial Machinery – 2.2%
IDEX Corp.		438		41,011
Woodward, Inc.		291		18,190
				59,201
Research & Consulting Services – 4.3%
CoStar Group, Inc. (B)(D)		343		74,280
Verisk Analytics, Inc., Class A (B)		516		41,901
				116,181
Trading Companies & Distributors – 3.1%
Fastenal Co. (C)		1,989		83,088
Total Industrials – 15.6%				419,516
Information Technology
Application Software – 4.3%
ANSYS, Inc. (B)		429		39,693
Ellie Mae, Inc. (B)		263		27,731
Guidewire Software, Inc. (B)		472		28,312
Mobileye N.V. (B)		436		18,565
				114,301
Communications Equipment – 1.6%
Harris Corp.		468		42,850
Electronic Manufacturing Services – 2.1%
Trimble Navigation Ltd. (B)		1,991		56,859
Home Entertainment Software – 2.7%
Electronic Arts, Inc. (B)(C)		845		72,201
Internet Software & Services – 4.7%
Akamai Technologies, Inc. (B)		206		10,910
GrubHub, Inc. (B)		1,226		52,724
Pandora Media, Inc. (B)		4,278		61,297
				124,931
Semiconductors – 4.1%
Maxim Integrated Products, Inc.		714		28,491
Microchip Technology, Inc.		1,239		76,963
Monolithic Power Systems, Inc.		67		5,433
				110,887
Systems Software – 3.9%
Red Hat, Inc. (B)		623		50,391
ServiceNow, Inc. (B)		696		55,094
				105,485
Total Information Technology – 23.4%				627,514
Materials
Fertilizers & Agricultural Chemicals – 1.3%
Scotts Miracle-Gro Co. (The)		418		34,811
Total Materials – 1.3%				34,811
TOTAL COMMON STOCKS – 99.0%			$	2,656,280
(Cost: $2,271,501)

84 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MID CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Value
MarketAxess Holdings, Inc.,
Call $175.00, Expires 11–18–16, OTC (Ctrpty: UBS AG)		811	$	261
Russell 2000 Index,
Put $1,220.00, Expires 10–28–16, OTC (Ctrpty: UBS AG)		1,203		1,498
S&P 500 Index,
Put $2,125.00, Expires 10–28–16		392		629
SPDR S&P MIDCAP 400 ETF Trust,
Put $275.00, Expires 10–28–16, OTC (Ctrpty: Citibank N.A.)		6,727		1,665
TOTAL PURCHASED OPTIONS – 0.2%			$	4,053
(Cost: $4,225)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (E) — 0.7%
John Deere Canada ULC (GTD by Deere & Co.),
0.450%, 11–7–16	$	5,000	$	4,998
NBCUniversal Enterprise, Inc.,
0.790%, 10–17–16		5,000		4,998
Wisconsin Electric Power Co.,
0.450%, 10–3–16		10,209		10,208
				20,204
Master Note – 0.1%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (F)		1,528		1,528
TOTAL SHORT-TERM SECURITIES –0.8%			$	21,732
(Cost: $21,733)
TOTAL INVESTMENT SECURITIES – 100.0%			$	2,682,065
(Cost: $2,297,459)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.0%				1,030
NET ASSETS – 100.0%			$	2,683,095

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) All or a portion of securities with an aggregate value of $14,619 are held in collateralized accounts for OTC derivatives collateral and is governed by International Swaps and Derivatives Association, Inc. Master Agreements.

(D) All or a portion of securities with an aggregate value of $4,764 are held in collateralized accounts to cover potential obligations with respect to outstanding written options.

(E) Rate shown is the yield to maturity at September 30, 2016.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Expiration Month	Exercise Price		Premium Received		Value
MarketAxess Holdings, Inc.	UBS AG	Put		811	November 2016	$	150.00	$	366	$	(168	)
Pacira Pharmaceuticals, Inc.	Goldman Sachs International	Put		2,887	December 2016		85.00		12,154		(14,676	)
Russell 2000 Index	UBS AG	Put		1,203	October 2016		1,110.00		253		(213	)
S&P 500 Index	N/A	Put		392	October 2016		1,975.00		109		(92	)
SPDR S&P MIDCAP 400 ETF Trust	Citibank N.A.	Put		6,727	October 2016		255.00		262		(286	)
								$	13,144	$	(15,435	)

2016 SEMIANNUAL REPORT 85

SCHEDULE OF INVESTMENTS IVY MID CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	2,656,280	$	—	$	—
Purchased Options		629		3,424		—
Short–Term Securities		—		21,732		—
Total	$	2,656,909	$	25,156	$	—
Liabilities
Written Options	$	92	$	15,343	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

OTC = Over the Counter

See Accompanying Notes to Financial Statements.

86 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY MID CAP INCOME OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	97.5%
Consumer Discretionary	22.1%
Information Technology	16.6%
Industrials	14.1%
Energy	8.5%
Materials	8.5%
Financials	8.3%
Health Care	8.3%
Consumer Staples	5.5%
Real Estate	2.9%
Utilities	2.7%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.5%

Lipper Rankings

Category: Lipper Mid-Cap Core Funds Universe Average	Rank	Percentile
1 Year	18/419		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.

Top 10 Equity Holdings

Company	Sector	Industry
Polaris Industries, Inc.	Consumer Discretionary	Leisure Products
Rockwell Automation, Inc.	Industrials	Electrical Components & Equipment
American Campus Communities, Inc.	Real Estate	Residential REITs
Targa Resources Corp.	Energy	Oil & Gas Storage & Transportation
Scotts Miracle–Gro Co. (The)	Materials	Fertilizers & Agricultural Chemicals
RPM International, Inc.	Materials	Specialty Chemicals
Helmerich & Payne, Inc.	Energy	Oil & Gas Drilling
KAR Auction Services, Inc.	Industrials	Diversified Support Services
Microchip Technology, Inc.	Information Technology	Semiconductors
Maxim Integrated Products, Inc.	Information Technology	Semiconductors

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 87

SCHEDULE OF INVESTMENTS IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel Retail – 2.8%
Limited Brands, Inc.		84	$	5,916
Consumer Electronics – 2.8%
Garmin Ltd.		122		5,881
Department Stores – 2.8%
Kohl’s Corp.		134		5,878
Home Furnishings – 2.7%
Leggett & Platt, Inc.		127		5,803
Leisure Products – 5.5%
Mattel, Inc.		185		5,596
Polaris Industries, Inc.		82		6,342
				11,938
Movies & Entertainment – 2.7%
Cinemark Holdings, Inc.		150		5,740
Restaurants – 2.8%
Cracker Barrel Old Country Store, Inc.		44		5,847
Total Consumer Discretionary – 22.1%				47,003
Consumer Staples
Household Products – 2.8%
Clorox Co. (The)		47		5,888
Packaged Foods & Meats – 2.7%
Kellogg Co.		74		5,733
Total Consumer Staples – 5.5%				11,621
Energy
Oil & Gas Drilling – 2.8%
Helmerich & Payne, Inc.		89		5,997
Oil & Gas Storage & Transportation – 5.7%
Plains All American Pipeline L.P.		186		5,854
Targa Resources Corp.		123		6,058
				11,912
Total Energy – 8.5%				17,909
Financials
Insurance Brokers – 2.8%
Arthur J. Gallagher & Co.		116		5,915
Regional Banks – 5.5%
Glacier Bancorp, Inc.		203		5,780
Umpqua Holdings Corp.		384		5,781
				11,561
Total Financials – 8.3%				17,476

COMMON STOCKS (Continued)	Shares		Value
Health Care
Health Care Equipment – 2.8%
Becton Dickinson & Co.		33	$	5,922
Health Care Facilities – 2.7%
HealthSouth Corp.		142		5,778
Health Care Supplies – 2.8%
Cardinal Health, Inc.		75		5,826
Total Health Care – 8.3%				17,526
Industrials
Diversified Support Services – 2.8%
KAR Auction Services, Inc.		138		5,966
Electrical Components & Equipment – 2.9%
Rockwell Automation, Inc.		51		6,201
Environmental & Facilities Services – 2.7%
Republic Services, Inc., Class A		115		5,795
Office Services & Supplies – 5.7%
Avery Dennison Corp.		76		5,878
HNI Corp.		148		5,886
				11,764
Total Industrials – 14.1%				29,726
Information Technology
Communications Equipment – 2.8%
Harris Corp.		65		5,919
Data Processing & Outsourced Services – 5.4%
Broadridge Financial Solutions, Inc.		84		5,698
Paychex, Inc.		99		5,738
				11,436
Semiconductors – 8.4%
Maxim Integrated Products, Inc.		149		5,940
Microchip Technology, Inc.		96		5,948
Xilinx, Inc.		108		5,880
				17,768
Total Information Technology – 16.6%				35,123
Materials
Fertilizers & Agricultural Chemicals – 2.9%
Scotts Miracle-Gro Co. (The)		72		6,024
Paper Packaging – 2.8%
Sonoco Products Co.		111		5,879
Specialty Chemicals – 2.8%
RPM International, Inc.		112		6,002
Total Materials – 8.5%				17,905

COMMON STOCKS (Continued)	Shares		Value
Real Estate
Residential REITs – 2.9%
American Campus Communities, Inc.		120	$	6,105
Total Real Estate – 2.9%				6,105
Utilities
Electric Utilities – 2.7%
OGE Energy Corp.		184		5,807
Total Utilities – 2.7%				5,807
TOTAL COMMON STOCKS – 97.5%			$	206,201
(Cost: $184,770)
SHORT-TERM SECURITIES	Principal
Commercial Paper (A) – 1.7%
St. Jude Medical, Inc.,
0.700%, 10–3–16	$	3,460		3,460
Master Note – 0.7%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (B)		1,585		1,585
TOTAL SHORT-TERM SECURITIES – 2.4%			$	5,045
(Cost: $5,045)
TOTAL INVESTMENT SECURITIES – 99.9%			$	211,246
(Cost: $189,815)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1%				282
NET ASSETS – 100.0%			$	211,528

88 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Notes to Schedule of Investments

(A) Rate shown is the yield to maturity at September 30, 2016.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	206,201	$	—	$	—
Short-Term Securities		—		5,045		—
Total	$	206,201	$	5,045	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 89

PORTFOLIO HIGHLIGHTS IVY MONEY MARKET FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Corporate Obligations	26.2%
Commercial Paper	21.9%
Master Note	3.5%
Notes	0.8%
United States Government and Government Agency Obligations	47.7%
Municipal Obligations	26.6%
Liabilities, Net of Cash and Other Assets	-0.5%

Lipper Rankings

Category: Lipper Money Market Funds	Rank	Percentile
1 Year	35/140		25
3 Year	33/130		26
5 Year	28/129		22
10 Year	22/105		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.

90 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MONEY MARKET FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

CORPORATE OBLIGATIONS	Principal		Value
Commercial Paper (A)
Coca-Cola Co. (The),
0.660%, 10–13–16	$	3,500	$	3,499
Corporacion Andina de Fomento:
0.823%, 10–5–16		2,600		2,600
0.760%, 10–14–16		3,400		3,399
CVS Health Corp.,
0.700%, 10–3–16		950		950
J.M. Smucker Co. (The),
0.700%, 10–3–16		950		950
Kroger Co. (The),
0.630%, 10–3–16		915		915
Malayan Banking Berhad (GTD by Wells Fargo Bank N.A.):
0.691%, 10–4–16		1,300		1,300
0.451%, 10–7–16		4,500		4,500
Northern Illinois Gas Co.:
0.560%, 10–4–16		4,000		4,000
0.510%, 10–11–16		2,000		2,000
Rabobank Nederland,
0.740%, 10–12–16		2,350		2,349
River Fuel Trust #1 (GTD by Bank of Nova Scotia),
0.790%, 10–14–16		9,000		8,997
St. Jude Medical, Inc.,
0.700%, 10–3–16		950		950
Toyota Motor Credit Corp.,
0.774%, 10–6–16 (B)		2,600		2,600
Wisconsin Electric Power Co.,
0.490%, 10–4–16		3,500		3,500
Total Commercial Paper – 21.9%				42,509
Master Note
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (B)		6,848		6,848
Total Master Note – 3.5%				6,848
Notes
Royal Bank of Canada,
0.920%, 10–14–16 (B)		1,500		1,500
Total Notes – 0.8%				1,500
TOTAL CORPORATE OBLIGATIONS – 26.2%			$	50,857
(Cost: $50,857)
MUNICIPAL OBLIGATIONS
California — 5.4%
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.),
0.840%, 10–7–16 (B)		2,000		2,000
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by FNMA),
0.860%, 10–7–16 (B)		1,350		1,350
The Regents of the Univ of CA, Gen Rev Bonds, Ser AL,
0.850%, 10–7–16 (B)		7,200		7,200
				10,550

MUNICIPAL OBLIGATIONS (Continued)	Principal		Value
Colorado – 1.5%
CO Hsng and Fin Auth, Multifam Hsng Rev Bonds (Greentree Vlg Apts Proj), Ser 2007 (GTD by U.S. Bank N.A.),
0.910%, 10–7–16 (B)	$	2,700	$	2,700
Sheridan Redev Agy CO Tax, Var Rfdg S Santa Fe Dr Corridor Redev PJ, Ser A-1 (GTD by JPMorgan Chase & Co.),
1.000%, 10–7–16 (B)		250		250
				2,950
Georgia – 0.5%
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser B (Taxable), (GTD by TD Bank N.A.),
0.680%, 10–11–16		1,000		1,000
Kansas – 1.0%
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004 (GTD by U.S. Bank N.A.),
0.910%, 10–1–16 (B)		1,975		1,975
Louisiana – 2.0%
LA Pub Fac Auth, Rev Bonds (Air Products and Chemicals Proj), Ser 2008A (GTD by Air Products and Chemicals, Inc.),
0.850%, 10–1–16 (B)		2,911		2,911
Parish of St. Bernard, LA, Exempt Fac Rev Bonds (Mobil Oil Corp. Proj), Ser 1996 (GTD by Exxon Mobil Corp.),
0.780%, 10–1–16 (B)		1,000		1,000
				3,911
Maryland – 2.0%
MD Hlth and Higher Edu Fac Auth Rev Bonds, Anne Arundel Hlth Sys Issue, Ser 2009A (GTD by TD Bank N.A.),
0.750%, 10–7–16 (B)		3,800		3,800
Michigan – 1.3%
MI Strategic Fund, Var Rate Demand Ltd. Oblig Rev Bonds (Air Prods and Chemicals, Inc. Proj), Ser 2007 (GTD by Air Prods and Chemicals, Inc.),
0.850%, 10–1–16 (B)		2,500		2,500
Minnesota – 3.1%
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2011A (GTD by U.S. Bank N.A.),
0.860%, 10–7–16 (B)		6,000		6,000

MUNICIPAL OBLIGATIONS (Continued)	Principal		Value
Missouri – 0.5%
Kansas City, MO, Var Rate Demand Taxable Spl Oblig Rfdg Bonds (President Hotel Redev Proj), Ser 2009B (GTD by JPMorgan Chase & Co.),
0.880%, 10–7–16 (B)	$	950	$	950
New Jersey – 0.5%
Trap Rock Industries, Inc., Var Demand Bonds, Ser 2005 (GTD by Wachovia Bank N.A.),
0.650%, 10–7–16 (B)		1,045		1,045
New York – 4.0%
NY Hsng Fin Agy, Related-Caroline Apt Hsng Rev Bonds, Ser 2008A (GTD by FHLMC),
0.830%, 10–7–16 (B)		500		500
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2013A,
0.840%, 10–7–16 (B)		2,000		2,000
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.),
0.780%, 10–7–16 (B)		2,300		2,300
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013A-1 (GTD by Bank of America N.A.),
0.840%, 10–7–16 (B)		1,200		1,200
NYC GO Bonds, Fiscal 2006 Ser E (GTD by Bank of America N.A.),
0.880%, 10–7–16 (B)		1,644		1,644
				7,644
Ohio – 1.7%
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2005 (GTD by U.S. Bank N.A.),
0.850%, 10–7–16 (B)		2,900		2,900
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.),
0.850%, 10–7–16 (B)		300		300
				3,200
Tennessee – 0.4%
Johnson City, TN Hlth and Edu Fac, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2013A (GTD by U.S. Bank N.A.),
0.830%, 10–7–16 (B)		760		760

2016 SEMIANNUAL REPORT 91

SCHEDULE OF INVESTMENTS IVY MONEY MARKET FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL OBLIGATIONS (Continued)	Principal		Value
Texas – 2.0%
Port Arthur Nav Dist Indl Dev Corp., Exempt Fac Var Rate Rev Bonds (Air Products Proj), Ser 2006 (GTD by Air Products and Chemicals, Inc.),
0.850%, 10–1–16 (B)	$	1,000	$	1,000
Port Arthur Nav Dist Indl Dev Corp., Exempt Fac Var Rate Rev Bonds (Air Prdts Proj), Ser 2005 (GTD by Air Products and Chemicals, Inc.),
0.850%, 10–1–16 (B)		2,925		2,925
				3,925
Wyoming – 0.7%
Uinta Cnty, WY, Pollutn Ctl Rfdg Rev Bonds (Chevron USA, Inc. Proj), Ser 1992 (GTD by Chevron Corp.),
0.830%, 10–1–16 (B)		1,283		1,283
TOTAL MUNICIPAL OBLIGATIONS – 26.6%			$	51,493
(Cost: $51,493)

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS	Principal		Value
Treasury Bills – 8.3%
U.S. Treasury Bills:
0.440%, 2–9–17	$	861	$	859
0.470%, 3–9–17		4,000		3,992
0.540%, 3–16–17		2,700		2,693
0.500%, 3–23–17		2,500		2,494
U.S. Treasury Notes,
0.420%, 10–2–16 (B)		6,040		6,039
				16,077
United States Government Agency Obligations – 39.4%
Federal Home Loan Bank:
0.570%, 10–12–16 (B)		2,300		2,300
0.720%, 2–17–17		2,500		2,500
0.690%, 7–26–17		3,000		3,000
0.750%, 8–23–17		4,000		4,000

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
United States Government Agency Obligations (Continued)
Overseas Private Investment Corp. (GTD by U.S. Government):
0.750%, 10–5–16 (B)	$	1,786	$	1,786
0.760%, 10–5–16 (B)		10,143		10,143
0.800%, 10–5–16 (B)		2,233		2,233
0.560%, 10–7–16 (B)		3,100		3,100
0.750%, 10–7–16 (B)		12,565		12,564
0.760%, 10–7–16 (B)		19,731		19,731
0.790%, 10–7–16 (B)		11,000		11,000
0.800%, 10–7–16 (B)		808		808
0.560%, 1–12–17 (B)		3,250		3,250
				76,415
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS — 47.7%			$92,492
(Cost: $92,492)
TOTAL INVESTMENT SECURITIES – 100.5%			$	194,842
(Cost: $194,842)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.5)%				(1,217	)
NET ASSETS – 100.0%			$	193,625

Notes to Schedule of Investments

(A) Rate shown is the yield to maturity at September 30, 2016.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Corporate Obligations	$	—	$	50,857	$	—
Municipal Obligations		—		51,493		—
United States Government and Government Agency Obligations		—		92,492		—
Total	$	—	$	194,842	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

FHLMC = Federal Home Loan Mortgage Corp.

FNMA = Federal National Mortgage Association

GTD = Guaranteed

See Accompanying Notes to Financial Statements.

92 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY MUNICIPAL BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	2.8%
Financials	2.8%
Bonds	81.0%
Municipal Bonds	81.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	16.2%

Lipper Rankings

Category: Lipper General Municipal Debt Funds	Rank	Percentile
1 Year	216/267		81
3 Year	202/230		88
5 Year	171/209		82
10 Year	72/154		47

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	73.2%
AAA	2.3%
AA	34.8%
A	26.7%
BBB	9.4%
Non-Investment Grade	7.8%
BB	0.9%
B	0.6%
CCC	0.2%
Non-rated	6.1%
Cash and Other Assets (Net of Liabilities), 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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 93

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Financials
Registered Investment Companies – 2.8%
iShares National AMT-Free Muni Bond ETF		60	$	6,776
Total Financials – 2.8%				6,776
TOTAL COMMON STOCKS – 2.8%			$	6,776
(Cost: $6,678)
MUNICIPAL BONDS	Principal
Alabama – 0.9%
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		545
The Spl Care Fac Fin Auth of Birmingham–Children’s Hosp, Hlth Care Fac Rev Bonds, Ser 2009,
6.000%, 6–1–39		750		850
Water Works Board of Birmingham, AL, Water Rev Bonds, Ser 2009-A,
5.125%, 1–1–34		750		817
				2,212
Arizona – 0.9%
AZ Cert of Part, Ser 2010A (Insured by AGM),
5.250%, 10–1–26		1,000		1,118
Rio Nuevo Multipurp Fac Dist (Tucson, AZ), Sub Lien Excise Tax Rev Bonds, Ser 2008,
6.625%, 7–15–25		500		551
Univ Med Ctr Corp. (Tucson, AZ), Hosp Rev Bonds, Ser 2009,
6.500%, 7–1–39		500		575
				2,244
Arkansas – 0.4%
Board of Trustees of the Univ of AR, Var Fac Rev Bonds (Fayetteville Campus), Rfdg and Impvt Ser 2016A,
5.000%, 11–1–37		745		921
California – 11.0%
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 D-1 Index Rate Bonds,
1.219%, 4–1–45 (A)		1,000		1,002
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 G-1,
1.940%, 4–1–45 (A)		1,500		1,516
CA Cmnty Trans Rev (Installment Sale), Cert of Part (T.R.I.P. - Total Road Impvt Prog), Ser 2012B,
5.250%, 6–1–42		345		392

MUNICIPAL BONDS (Continued)	Principal		Value
California – 11.0% (Continued)
CA Muni Fin Auth, Cmnty Hosp of Cent CA Oblig Group Cert of Part,
5.500%, 2–1–39	$	460	$	504
CA Muni Fin Auth, Edu Rev Bonds (American Heritage Edu Fndtn Proj), Ser 2016A,
5.000%, 6–1–36		1,000		1,150
CA Pollutn Ctl Fin Auth, Solid Waste Disp Rev Bonds (Republic Svc, Inc. Proj), Ser 2002B,
5.250%, 6–1–23		415		435
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A,
5.000%, 10–1–22		375		412
CA Statewide Cmnty Dev Auth, Insd Rev Bonds (Henry Mayo Newhall Mem Hosp), Ser 2007A,
5.000%, 10–1–37		500		521
CA Statewide Cmnty Dev Auth, Student Hsng Rev Bonds (Univ of CA, Irvine East Campus Apt, Phase I Rfdg-CHF-Irvine LLC), Ser 2011,
5.000%, 5–15–21		1,365		1,585
CA Various Purp GO Bonds:
5.250%, 9–1–26		1,500		1,806
5.250%, 10–1–29		500		564
6.500%, 4–1–33		1,000		1,138
6.000%, 11–1–39		500		577
CA Various Purp GO Rfdg Bonds,
5.000%, 2–1–33		2,000		2,395
City of Los Angeles, Wastewater Sys Rev Bonds, Rfdg Ser 2015-D,
5.000%, 6–1–34		1,190		1,466
Cnty of Sacramento, Arpt Sys Sub and PFC/Grant Rev Bonds, Ser 2009,
5.125%, 7–1–25		500		536
Golden State Tob Securitization Corp., Enhanced Tob Stlmt Asset-Bkd Bonds, Ser 2013A,
5.000%, 6–1–30		1,000		1,201
La Quinta Redev Proj Areas No. 1 and 2, Tax Alloc Rfdg Bonds, Ser 2014A,
5.000%, 9–1–34		750		898
Los Angeles Unif Sch Dist (Cnty of Los Angeles, CA), GO Bonds, Election of 2005, Ser 2009F,
5.000%, 1–1–34		500		556
Modesto, CA, Irrigation Dist Fin Auth, Elec Sys Rev Bonds, Ser 2015A,
5.000%, 10–1–36		670		801
Mountain View Shoreline Reg Park Comnty (Santa Clara Cnty, CA), Rev Bonds, Ser 2011A,
5.000%, 8–1–21		250		293
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part,
6.750%, 11–1–39		250		287
Palomar, CA, Hlth GO Rfdg Bonds, Ser 2016B,
4.000%, 8–1–37 (B)		1,000		1,094

MUNICIPAL BONDS (Continued)	Principal		Value
California – 11.0% (Continued)
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, 2010 Tax Alloc Bonds, Ser E,
5.250%, 10–1–20	$	570	$	645
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, Ser 2010E,
6.000%, 10–1–25		445		523
San Jose, CA, Arpt Rev Bonds, Ser 2011A-1,
5.250%, 3–1–21		500		583
Santa Ana Unif Sch Dist (Orange County, CA), Election of 2008 Gen Oblig Bond, Series B,
0.000%, 8–1–37 (C)		1,455		753
Southn CA Pub Power Auth, Transmission Proj Rev Bonds (Southn Transmission Proj), Ser 2008B,
6.000%, 7–1–27		500		545
State Pub Works Board of CA, Lease Rev Bonds (Various Cap Proj), Ser 2011A:
5.250%, 10–1–24		500		599
5.000%, 12–1–24		500		595
Trustees of the CA State Univ, Systemwide Rev Bonds, Ser 2015A,
5.000%, 11–1–38		500		614
Upland Unif Sch Dist (San Bernardino Cnty, CA), Election of 2008 GO Bonds, Ser A,
0.000%, 8–1–31 (C)		150		98
Vernon Elec Sys Rev Bonds, Ser 2012A,
5.500%, 8–1–41		315		365
				26,449
Colorado – 1.6%
Adams 12 Five Star Sch, Adams and Broomfield Cnty, CO Cert of Part, Ser 2008,
5.000%, 12–1–25		500		544
City and Cnty of Broomfield, CO, Rfdg Cert of Part, Ser 2010,
5.000%, 12–1–23		500		570
Joint Sch Dist No. 28J, Adams and Arapahoe Cnty, CO, GO Bonds, Ser 2008,
6.000%, 12–1–28		500		555
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008,
6.125%, 12–1–30		500		531
Platte Vly Fire Protection Dist, Weld Cnty, CO, Cert of Part, Ser 2012,
5.000%, 12–1–36		300		334
Rgnl Trans Dist of CO, Cert of Part, Ser 2015A,
5.000%, 6–1–35		435		520

94 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Colorado – 1.6% (Continued)
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010,
6.500%, 1–15–30	$	750	$	880
				3,934
Connecticut – 0.6%
Cap City Econ Dev Auth, Prkg and Enrg Fee Rev Bonds, Ser 2008D,
5.000%, 6–15–22		370		394
CT GO Bonds, Ser 2012D,
1.760%, 9–15–19 (A)		1,000		1,007
				1,401
District Of Columbia – 1.1%
DC GO Rfdg Bonds, Ser 2008F (Insured by BHAC),
5.000%, 6–1–19		1,000		1,070
DC Hosp Rev Bonds (Sibley Mem Hosp Issue), Ser 2009,
6.375%, 10–1–39		750		869
Metro WA DC Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2009C,
0.000%, 10–1–41 (C)		500		680
				2,619
Florida – 6.1%
Brevard Cnty Hlth Fac Auth, Hlth Rev Bonds (Hlth First, Inc. Proj), Ser 2009B,
7.000%, 4–1–39		500		576
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009,
6.750%, 11–1–39		500		553
Citizens Ppty Ins Corp., Sr Secured Rev Bonds, Ser 2010A–1,
5.250%, 6–1–17		400		412
Fort Myers, FL, Cap Impvt and Rfdg Rev Bonds, Ser 2016 (Insured by BAMAC),
4.000%, 12–1–34		700		772
Hillsborough Cnty Aviation Auth, FL Intl Arpt, Sub Rev Bonds, Ser 2015B,
5.000%, 10–1–35		300		349
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008A,
5.625%, 8–15–29		555		604
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008B,
8.000%, 8–15–32		600		725
Miami-Dade Cnty, FL, Aviation Rev Bonds, Miami Intl Arpt (Hub of the Americas), Ser 2009A,
5.500%, 10–1–36		500		564
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B,
5.000%, 10–1–23		500		574

MUNICIPAL BONDS (Continued)	Principal		Value
Florida – 6.1% (Continued)
Miami-Dade Cnty, FL, GO Bonds (Bldg Better Cmnty Prog), Ser 2008B,
6.250%, 7–1–26	$	500	$	547
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008B (Insured by AGM),
5.250%, 10–1–22		500		614
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008C (Insured by BHAC),
5.000%, 10–1–17		500		520
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A,
7.250%, 10–1–34		500		646
Osceola Cnty, FL, Sales Tax Rev Rfdg Bonds, Ser 2016A,
5.000%, 10–1–37		2,005		2,387
Palm Beach Co, Hlth Fac Auth Rev Bonds (Lifespace Cmnty, Inc.), Ser 2015C,
5.000%, 5–15–30		1,000		1,197
Pinellas Cnty Edu Fac Auth, Rev Rfdg Prog Bonds (Barry Univ Proj), Ser 2012,
5.250%, 10–1–30		750		848
Port St. Lucie, FL, Spl Assmt Rfdg Bonds (City Ctr Spl Assmt Dist), Ser 2008A,
5.750%, 7–1–20		500		537
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmnty Proj), Ser 2010A,
5.875%, 8–1–40		500		567
St. Lucie, FL, Util Sys Rfdg Rev Bonds, Ser 2016,
4.000%, 9–1–34		1,000		1,113
Volusia Cnty Edu Fac Auth, Edu Fac Rev Rfdg Bonds (Embry-Riddle Aeronautical Univ, Inc. Proj), Ser 2011,
5.250%, 10–15–22		500		585
				14,690
Georgia – 1.1%
Dev Auth of Burke Cnty (GA), Pollutn Ctl Rev Bonds (Oglethorpe Power Corp. Vogtle Proj), Ser 2003A,
0.919%, 1–1–24 (A)		2,000		1,982
Muni Elec Auth of GA, Proj One Sub Bonds, Ser 2008D,
5.750%, 1–1–20		500		543
				2,525
Hawaii – 1.2%
HI Arpt Sys Rev Bond, Rfdg Ser 2011,
5.000%, 7–1–21		1,000		1,164
HI Dept of Budget and Fin, Spl Purp Rev Bonds (The Queen’s Hlth Sys), Ser 2015A,
5.000%, 7–1–35		1,500		1,807
				2,971

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois – 5.6%
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A,
5.000%, 5–1–26	$	165	$	167
Build IL Sales Tax Rev Bonds, Ser 2011,
5.000%, 6–15–27		500		567
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Rfdg Bonds, Ser 2015B,
5.000%, 1–1–34		1,000		1,189
City of Chicago, Second Lien Water Rev Bonds, Ser 2014,
5.000%, 11–1–39		1,500		1,703
City of Chicago, Second Lien Water Rev Bonds, Ser 2000,
5.000%, 11–1–30		500		596
IL Fin Auth, DePaul Univ Rev Bonds, Ser 2016,
5.000%, 10–1–41		2,410		2,858
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009,
6.500%, 4–1–39		500		547
IL Fin Auth, Rev Bonds, The Univ of Chicago, Ser 2008B,
5.500%, 7–1–19		500		540
IL Fin Auth, Student Hsng Rev Bonds (CHF-DeKalb LLC–Northn IL Univ Proj), Ser 2011,
5.750%, 10–1–21		395		440
IL GO Bonds, Ser 2012A,
4.000%, 1–1–23		1,000		1,056
IL Muni Elec Agy, Power Supply Sys Rev Rfdg Bonds, Ser 2015A,
5.000%, 2–1–32		695		830
IL Sales Tax Rev Bonds (Jr Oblig), Ser 2013,
5.000%, 6–15–26		300		358
IL State Toll Hwy Auth, Toll Hwy Sr Rev Bonds, 2013 Ser A,
5.000%, 1–1–35		1,100		1,284
IL State Toll Hwy Auth, Toll Hwy Sr Rev Bonds, Ser B,
5.000%, 1–1–37		500		597
State of IL GO Bonds,
5.500%, 7–1–26		500		575
				13,307
Indiana – 1.0%
Hammond, IN, Redev Dist Rev Bonds (Marina Area Proj), Ser 2008,
6.000%, 1–15–17		80		80
IN Fin Auth, Fac Rev Rfdg Bonds (Miami Correctional Fac–Phase II), Ser 2008C,
5.000%, 7–1–17		500		516
IN Muni Power Agy, Power Supply Sys Rfdg Rev Bonds, Ser 2016C,
5.000%, 1–1–39		1,000		1,194

2016 SEMIANNUAL REPORT 95

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Indiana – 1.0% (Continued)
Mt. Vernon Sch Bldg Corp. of Hancock Cnty, IN, First Mtg Bonds, Ser 2007 (Insured by AGM),
5.250%, 1–15–32	$	500	$	529
				2,319
Iowa – 1.5%
Altoona, IA, Annual Appropriation Urban Renewal Tax Incr Rev Bonds, Ser 2008,
6.000%, 6–1–34		1,000		1,085
Ames, IA, Hosp Rev Rfdg Bonds (Mary Greeley Med Ctr), Ser 2016,
4.000%, 6–15–35		1,510		1,662
IA Higher Edu Loan Auth, Private College Fac Rev Bonds (Upper IA Univ Proj), Ser 2012,
5.000%, 9–1–33		750		932
				3,679
Kansas – 1.5%
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009,
7.000%, 9–1–38		500		524
Saint Marys, KS, Pollutn Ctl Rev Bonds (Westn Res, Inc. Proj), Ser 1994,
1.120%, 4–15–32 (A)		2,000		1,863
Shawnee Cnty, KS, Cert of Part (First Responders Comm Proj), Ser 2012,
5.000%, 9–1–24		1,050		1,189
				3,576
Kentucky – 1.0%
Cmnwlth of KY, State Ppty and Bldg Comsn, Rev and Rev Rfdg Bonds, Proj No. 90,
5.750%, 11–1–19		500		548
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A:
5.500%, 6–1–21		500		570
6.500%, 3–1–45		675		774
Louisville Rgnl Arpt Auth, Arpt Sys Rev Bonds, Ser 2008A,
5.250%, 7–1–28		500		537
				2,429
Louisiana – 2.1%
LA Citizens Prop Ins Corp., Assmt Rev Rfdg Bonds, Ser 2012,
5.000%, 6–1–24		500		608
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Hosp Rev Bonds (Women’s Hosp Fndtn Gulf Opp Zone Proj), Ser 2010B,
6.000%, 10–1–44		750		882
New Orleans Aviation Board, Rev Rfdg Bonds (Restructuring GARBs), Ser 2009A–1,
6.000%, 1–1–23		500		552

MUNICIPAL BONDS (Continued)	Principal		Value
Louisiana – 2.1% (Continued)
New Orleans, LA, GO Rfdg Bonds, Ser 2012 (Insured by AGM),
5.000%, 12–1–26	$	1,500	$	1,771
Rgnl Transit Auth, New Orleans, LA, Sales Tax Rev Bonds, Ser 2010 (Insured by AGM),
5.000%, 12–1–22		1,000		1,144
				4,957
Maine – 1.1%
ME Tpk Auth, Tpk Rev Rfdg Bonds, Ser 2015,
5.000%, 7–1–34		2,255		2,727
Maryland – 0.7%
MD Econ Dev Corp., Pollutn Ctl Rev Rfdg Bonds (Potomac Elec Proj), Ser 2006,
6.200%, 9–1–22		500		561
MD Hlth and Higher Edu Fac Auth, Rev Bonds, Johns Hopkins Hlth Sys Oblig Group Issue, Ser 2012D,
1.181%, 5–15–38 (A)		995		993
				1,554
Massachusetts – 0.5%
MA Dev Fin Agy, Rev Bonds, Foxborough Rgnl Charter Sch Issue, Ser 2010,
6.375%, 7–1–30		485		541
MA Edu Fin Auth, Edu Loan Rev Bonds, Issue I, Ser 2009,
6.000%, 1–1–28		595		632
				1,173
Michigan – 3.7%
Kalamazoo Hosp Fin Auth, Hosp Rev Rfdg Bonds (Bronson Methodist Hosp), Ser 2003A,
5.000%, 5–15–26		500		532
Lincoln Consolidated Sch Dist, Cnty of Washtenaw and Wayne, MI, Rfdg Bonds, Ser 2016A,
5.000%, 5–1–35		500		592
MI Fin Auth, Rev Bonds (Detroit Sch Dist), Ser 2011,
5.500%, 6–1–21		1,000		1,036
MI Fin Auth, Hosp Rev and Rfdg Bonds (Trinity Hlth Credit Group), Ser 2015MI,
5.000%, 12–1–35		500		582
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2015I,
5.000%, 4–15–34		500		603
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2016I,
4.000%, 10–15–36		1,000		1,101
MI State Hosp Fin Auth, Hosp Rev and Rfdg Bonds (Henry Ford Hlth Sys), Ser 2009,
5.750%, 11–15–39		750		859

MUNICIPAL BONDS (Continued)	Principal		Value
Michigan – 3.7% (Continued)
MI State Hosp Fin Auth, Var Rate Rev Bonds (Ascension Hlth Credit Group), Ser 1999B–4,
5.000%, 11–15–32	$	2,000	$	2,417
State Bldg Auth, MI, 2006 Rev Rfdg Bonds (Fac Prog), Ser IA (Insured by FGIC),
0.000%, 10–15–22 (C)		1,000		752
State Bldg Auth, MI, 2008 Rev Rfdg Bonds (Fac Prog), Ser I,
5.000%, 10–15–18		305		329
				8,803
Minnesota – 0.2%
Minneapolis-St. Paul Metro Arpt Comsn, Sub Arpt Rev Rfdg Bonds, Ser 2010D,
5.000%, 1–1–20		500		560
Mississippi – 0.4%
The Univ of Southn MS, S.M. Edu Bldg Corp., Rev Bonds (Campus Fac Impvt Proj), Ser 2009,
5.375%, 9–1–36		750		846
Missouri – 4.2%
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A,
6.125%, 12–1–36		175		141
Hlth and Edu Fac Auth, Hlth Fac Rev Bonds (The Children’s Mercy Hosp), Ser 2009,
5.625%, 5–15–39		750		834
Indl Dev Auth of Joplin, MO, Hlth Fac Rev Bonds (Freeman Hlth Sys), Ser 2011,
5.500%, 2–15–31		750		849
Kansas City, MO, Spl Oblig Impvt and Rfdg Bonds (Downtown Arena Proj), Ser 2016E,
5.000%, 4–1–40		2,000		2,337
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Iatan 2 Proj), Ser 2015A,
5.000%, 12–1–37		1,000		1,182
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Prairie State Proj), Ser 2016A,
5.000%, 12–1–40		1,000		1,193
Platte Cnty R-III Sch Dist Bldg Corp., Leasehold Rfdg and Impvt Rev Bonds, Ser 2008,
5.000%, 3–1–28		340		357
St. Louis Cnty, MO, Indl Dev Auth, Sr Living Fac Rev Bonds (Friendship Vlg Sunset Hills), Ser 2012,
5.000%, 9–1–32		1,120		1,253
St. Louis Muni Fin Corp., Compound Int Leasehold Rev Bonds (Convention Ctr Cap Impvt Proj), Ser 2010A (Insured by AGM),
0.000%, 7–15–36 (C)		2,350		1,181

96 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Missouri – 4.2% (Continued)
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007,
6.850%, 4–1–29	$	200	$	215
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		102
The Indl Dev Auth of St. Louis, MO, Sr Living Fac Rev Bonds (Friendship Vlg of West Cnty), Ser 2007A,
5.500%, 9–1–28		500		509
				10,153
Nebraska – 1.0%
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2015A,
5.000%, 2–1–33		1,000		1,197
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2016A,
5.000%, 2–1–41		1,000		1,191
				2,388
Nevada – 0.5%
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A,
8.000%, 6–15–30		500		592
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008:
6.000%, 12–1–16		75		76
6.250%, 12–1–17		270		287
6.500%, 12–1–18		290		325
				1,280
New Hampshire – 0.4%
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A,
6.875%, 7–1–41		150		176
NH Hlth and Edu Fac Auth, FHA Insd Mtg Rev Bonds, LRG Hlthcare Issue, Ser 2009 (Insured by FHA),
7.000%, 4–1–38		500		587
NH Hsng Fin Auth, Sngl Fam Mtg Acquisition Rev Bonds, Ser 2008,
6.000%, 7–1–38		195		199
				962
New Jersey – 3.1%
NJ Econ Dev Auth, Rev Bonds (Provident Group-Montclair Ppty LLC–Montclair St Univ Student Hsng Proj), Ser 2010A,
5.750%, 6–1–31		850		954
NJ Econ Dev Auth, Sch Fac Constr Notes, Ser 2012H,
1.740%, 2–1–17 (A)		2,000		2,000
NJ Econ Dev Auth, Sch Fac Constr Rfdg Bonds, Ser 2011EE,
5.250%, 9–1–24		500		565

MUNICIPAL BONDS (Continued)	Principal		Value
New Jersey – 3.1% (Continued)
NJ Higher Edu Student Assistance Auth, Student Loan Rev Bonds, Ser 2011-1,
5.000%, 12–1–19	$	500	$	548
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds, Barnabas Hlth Issue, Ser 2011A,
5.625%, 7–1–37		500		605
NJ Hlth Care Fac Fin Auth, Rev Bonds, Virtua Hlth Issue, Ser 2009A,
5.500%, 7–1–38		500		557
NJ Trans Trust Fund Auth, Trans Sys Bonds (Cap Apprec Bonds), Ser 2010A,
0.000%, 12–15–40 (C)		2,000		688
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2006A (Insured by AGM/CR),
5.500%, 12–15–22		500		596
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2003B-2,
5.000%, 12–15–16		500		504
Passaic Vly Sewerage Commissioners (NJ), Sewer Sys Bonds, Ser G,
5.750%, 12–1–21		435		517
				7,534
New Mexico – 0.0%
NM Mtg Fin Auth, Sngl Fam Mtg Prog Class I Bonds, Ser 2008D-2 (Insured by GNMA/FNMA/FHLMC),
5.250%, 7–1–30		55		56
New York – 9.0%
Buffalo and Erie Cnty Indl Land Dev Corp., Oblig Group Rev Bonds (Catholic Hlth Sys, Inc. Proj), Ser 2015,
5.250%, 7–1–35		750		899
Dormitory Auth of the State of NY, State Personal Income Tax Rev Bonds (Gen Purp), Ser 2015C (Tax-Exempt),
5.000%, 2–15–38		750		905
Long Island Power Auth, Elec Sys Gen Rev Bonds, Ser 2014A (Insured by AGM),
5.000%, 9–1–39		1,500		1,764
Metro Trans Auth, Trans Rev Bonds, Ser 2014C,
5.000%, 11–15–36		1,500		1,805
Metro Trans Auth, Trans Rev Green Bonds, Ser 2016A-1,
5.000%, 11–15–41		500		601
NY Convention Ctr Dev Corp., Rev Rfdg Bonds (Hotel Unit Fee Secured), Ser 2015,
5.000%, 11–15–34		1,000		1,224
NY Dormitory Auth, Mercy Med Ctr Rev Bonds (Catholic Hlth of Long Island Oblig Group), Ser 1999B,
0.800%, 7–1–29 (A)		1,300		1,212

MUNICIPAL BONDS (Continued)	Principal		Value
New York – 9.0% (Continued)
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohowk Power Corp. Proj), Ser 1985A (Insured by AMBAC),
1.318%, 12–1–23 (A)	$	1,380	$	1,332
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohawk Power Corp. Proj), Ser 2004A (Insured by Capital Assurance, Inc.),
1.318%, 7–1–29 (A)		1,280		1,254
NY State Enrg Research and Dev Auth, Fac Rev Bonds (Consolidated Edison Co. of NY, Inc. Proj), Sub Ser 1999A-1 (Insured by AMBAC),
1.365%, 5–1–34 (A)		2,000		1,840
NYC GO Bonds, Fiscal 2014 Ser G,
5.000%, 8–1–30		1,000		1,212
NYC Hsng Dev Corp., Multi-Fam Hsng Rev Bonds, Ser 2009K,
4.950%, 11–1–39		415		434
NYC Indl Dev Agy, Pilot Rev Bonds (Yankee Stadium Proj), Ser 2009A:
0.000%, 3–1–25 (C)		500		415
0.000%, 3–1–26 (C)		500		400
0.000%, 3–1–27 (C)		500		389
NYC Muni Water Fin Auth, Water and Sewer Sys Second Gen Resolution Rev Bonds, Ser 2015HH,
5.000%, 6–15–37		1,500		1,820
NYC Transitional Fin Auth, Bldg Aid Rev Bonds, Ser 2016S-1,
5.000%, 7–15–37		1,000		1,215
NYC Transitional Fin Auth, Future Tax Secured Tax-Exempt Sub Bonds, Ser 2013I,
5.000%, 5–1–29		400		487
Port Auth of NY & NJ Consolidated Bonds, One Hundred Fifty-Second Ser (Insured by BHAC),
5.750%, 11–1–30		500		539
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013TE,
5.000%, 12–15–31		1,500		1,840
				21,587
North Carolina – 0.4%
NC Eastn Muni Power Agy, Power Sys Rev Bonds, Ser 2008C,
6.000%, 1–1–19		110		117
NC Tpk Auth, Triangle Expressway Sys Rev Bonds, Ser 2009A,
0.000%, 1–1–37 (C)		500		261
Oak Island, NC, Enterprise Sys Rev Bonds, Ser 2009,
6.000%, 6–1–34		500		567
				945
Ohio – 1.0%
American Muni Power, Inc., Greenup Hydroelectric Proj Rev Bonds, Ser 2016A,
4.000%, 2–15–35		1,000		1,090

2016 SEMIANNUAL REPORT 97

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Ohio – 1.0% (Continued)
OH Air Quality Dev Auth, Envirnmt Impvt Rev Bonds (Buckeye Power, Inc. Proj), Ser 2010,
5.750%, 12–1–30	$	500	$	585
OH Major New State Infra Proj Rev Bonds, Ser 2008-I,
6.000%, 6–15–17		395		409
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (NW OH Bond Fund) (Midwest Terminals Proj), Ser 2007C,
6.000%, 11–15–27		370		383
				2,467
Oklahoma – 0.4%
Grand River Dam Auth, Rev Bonds, Ser 2008A (Insured by BHAC),
5.000%, 6–1–18		905		967
Oregon – 0.6%
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2009A,
5.500%, 7–15–35		250		276
Port of Portland, OR, Portland Intl Arpt Rfdg Rev Bonds, Ser Twenty-Three,
5.000%, 7–1–34		1,000		1,210
				1,486
Pennsylvania – 3.4%
Allegheny Cnty Arpt Auth, Arpt Rev Rfdg Bonds (Pittsburg Intl Arpt), Ser 2010A,
5.000%, 1–1–17		250		253
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2012,
3.000%, 1–1–17		455		456
Dauphin Cnty Gen Auth, Hlth Sys Rev Bonds (Pinnacle Hlth Sys Proj), Ser 2009A,
6.000%, 6–1–36		600		680
Lycoming Cnty Auth, Hlth Sys Rev Bonds (Susquehanna Hlth Sys Proj), Ser 2009A,
5.750%, 7–1–39		500		561
PA Auth for Indl Dev, Rev Bonds (MaST Charter Sch Proj), Ser 2010,
6.000%, 8–1–35		750		832
PA Higher Edu Fac Auth, Rev Bonds (Shippensburg Univ Student Svc, Inc. Student Hsng Proj at Shippensburg Univ of PA), Ser 2011,
6.000%, 10–1–26		500		572
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009D,
5.500%, 12–1–41		750		836
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2010 B-2,
5.750%, 12–1–28		1,500		1,762
PA Tpk Comsn, Tpk Sub Rev Rfdg Bonds, Ser 2016,
5.000%, 6–1–38		1,000		1,161

MUNICIPAL BONDS (Continued)	Principal		Value
Pennsylvania – 3.4% (Continued)
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011,
7.250%, 12–15–31	$	400	$	452
Philadelphia, PA, GO Rfdg Bonds, Ser 2008A (Insured by AGM),
5.250%, 12–15–24		445		485
				8,050
Rhode Island – 0.2%
RI Student Loan Auth, Student Loan Prog Rev Bonds, Sr Ser 2008A,
5.250%, 12–1–18		350		366
South Carolina – 0.5%
SC Pub Svc Auth, Tax-Exempt Rfdg and Impvt Rev Oblig, Ser 2015A,
5.000%, 12–1–29		1,000		1,219
Tennessee – 0.6%
Memphis-Shelby Cnty Arpt Auth, Arpt Rfdg Rev Bonds, Ser 2010B,
5.750%, 7–1–25		750		853
The Hlth, Edu and Hsng Fac Board of Shelby, TN, Rev Bonds (Methodist Le Bonheur Hlthcare), Ser 2008C,
5.250%, 6–1–18		500		535
				1,388
Texas – 7.5%
Arlington, TX, Spl Tax Rev Bonds, Ser 2008 (Insured by BHAC),
5.000%, 8–15–18		300		317
Austin, TX, Arpt Sys Rev Bonds (Travis, Williamson and Hays Counties), Ser 2014,
5.000%, 11–15–39		1,000		1,153
Board of Regents, TX State Univ Sys, Rev Fin Sys Rev Bonds, Ser 2008,
5.250%, 3–15–19		355		378
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Rfdg Bonds, Ser 2009A,
9.250%, 3–1–24		500		595
Clifton Higher Edu Fin Corp., Edu Rev Bonds (IDEA Pub Sch), Ser 2011,
5.750%, 8–15–41		500		565
Clifton Higher Edu Fin Corp., Edu Rev Bonds (Uplift Edu), Ser 2014A,
4.250%, 12–1–34		1,000		1,035
El Paso, TX (El Paso Cnty), Water and Sewer Rev Rfdg Bonds, Ser 2008C,
5.000%, 3–1–17		500		509
Harris Cnty Cultural Edu Fac Fin Corp., Med Fac Rev Rfdg Bonds (Baylor College of Medicine), Ser 2008D,
5.000%, 11–15–16		200		201
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008,
6.000%, 2–15–33		1,000		1,036

MUNICIPAL BONDS (Continued)	Principal		Value
Texas – 7.5% (Continued)
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A,
6.500%, 5–15–31	$	1,000	$	1,226
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2012A,
5.000%, 7–1–32		500		563
Howard Cnty, TX, GO Bonds, Ser 2008,
4.650%, 2–15–24		505		531
Lower Colorado River Auth, Rfdg Rev Bonds, Ser 2008A,
5.750%, 5–15–23		500		539
Mission Econ Dev Corp., Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff LLC Proj), Ser 2011,
5.625%, 12–1–17		365		375
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008D,
0.000%, 1–1–30 (C)		2,000		1,368
North TX Twy Auth, Sys Rev Rfdg Bonds (First Tier Current Int Bonds), Ser 2008A,
6.000%, 1–1–25		500		532
Pflugerville, TX, Ltd. Tax and Rfdg Bonds (Travis and Williamson Cntys), Ser 2016,
4.000%, 8–1–33		1,000		1,124
Prosper, TX (Collin Cnty), Combination Tax and Rev Cert of Oblig, Ser 2008,
5.500%, 2–15–20		500		532
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		257
Tarrant Cnty, TX, Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty Proj), Ser 2015A,
5.250%, 11–15–35		400		443
Trinity River Auth of TX (Tarrant Cnty Water Proj), Impvt Rev Bonds, Ser 2008,
5.750%, 2–1–26		325		346
TX Muni Gas Acquisition and Supply Corp. III, Gas Supply Rev Bonds, Ser 2012,
5.000%, 12–15–16		1,000		1,008
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		588
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (LBJ Infra Group LLC IH-635 Managed Lanes Proj), Ser 2010,
7.500%, 6–30–33		750		912
TX Pub Fin Auth, TX Southn Univ Rev Fin Sys Bonds, Ser 2016 (Insured by BAMAC),
4.000%, 5–1–33		500		541

98 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Texas – 7.5% (Continued)
TX Trans Comsn, Cent TX Tpk Sys Rev Bonds (First Tier Rev Rfdg Bonds), Ser 2015-B,
5.000%, 8–15–37	$	1,000	$	1,172
				17,846
Utah – 0.3%
Midvale, UT, Muni Bldg Auth Lease Rev Bonds (City Hall Proj), Ser 2012:
2.000%, 10–15–16		195		195
2.000%, 10–15–17		465		469
				664
Virgin Islands – 0.6%
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note–Cruzan Proj), Ser 2009A,
6.000%, 10–1–39		500		513
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note–Diageo Proj), Ser 2009A,
5.000%, 10–1–25		1,000		985
				1,498
Virginia – 0.4%
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C,
7.500%, 7–1–29		500		562
VA Pub Bldg Auth, Pub Fac Rev Bonds, Ser 2008B,
5.250%, 8–1–22		250		270
				832
Washington – 0.4%
Port of Seattle, Intermediate Lien Rev Rfdg Bonds, Ser 2015B,
5.000%, 3–1–35		300		357
WA Hlth Care Fac Auth, Rev Bonds (Virginia Mason Med Ctr), Ser 2007C,
5.500%, 8–15–36		500		518
				875
West Virginia – 0.2%
WV Hosp Fin Auth, Hosp Rev Rfdg and Impvt Bonds (WV Utd Hlth Sys Oblig Group), Ser 2009C,
5.500%, 6–1–39		500		560
Wisconsin – 1.6%
Milwaukee Cnty, WI, Arpt Rev Rfdg Bonds, Ser 2010B,
5.000%, 12–1–19		1,000		1,116
WI Hlth and Edu Fac Auth, Rev Bonds (Ascension Sr Credit Group), Ser 2016A,
4.000%, 11–15–33		1,000		1,119

MUNICIPAL BONDS (Continued)	Principal		Value
Wisconsin – 1.6% (Continued)
WI Hlth and Edu Fac Auth, Rev Bonds (Med College of WI, Inc.), Ser 2016,
5.000%, 12–1–41	$	750	$	900
WI Hlth and Edu Fac Auth, Rev Bonds (Pro Hlth Care, Inc. Oblig Group), Ser 2009,
6.625%, 2–15–39		500		567
				3,702
Wyoming – 0.5%
WY Cmnty Dev Auth, Hsng Rev Bonds, 2014 Ser 1,
3.950%, 12–1–30		725		772
WY Muni Power Agy, Power Supply Sys Rev Bonds, Ser 2008A,
5.250%, 1–1–23		500		526
				1,298
TOTAL MUNICIPAL BONDS – 81.0%			$	194,019
(Cost: $178,726)
SHORT-TERM SECURITIES
Commercial Paper(D) – 2.1%
Anheuser-Busch InBev Worldwide, Inc. (GTD by AB INBEV/BBR/COB),
0.650%, 12–21–16		2,000		1,997
Clorox Co. (The),
0.770%, 10–13–16		2,984		2,983
				4,980
Master Note – 1.2%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (E)		2,858		2,858
Municipal Obligations – 12.3%
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist Hlth Sys/West), Ser 1998B (GTD by U.S. Bank N.A.),
0.850%, 10–1–16 (E)		700		700
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.),
0.850%, 10–7–16 (E)		4,500		4,500
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank N.A.),
0.840%, 10–7–16 (E)		5,346		5,346
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.),
0.850%, 10–7–16 (E)		4,900		4,900
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2012A (GTD by U.S. Bank N.A.),
0.850%, 10–1–16 (E)		900		900

SHORT-TERM SECURITIES (Continued)	Principal		Value
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008B (Tax-Exempt), (GTD by U.S. Bank N.A.),
0.860%, 10–7–16 (E)	$	3,200	$	3,200
The Regents of the Univ of CA, Gen Rev Bonds, Ser AL,
0.850%, 10–7–16 (E)		5,000		5,000
Tuscaloosa Cnty Indl Dev Auth, Gulf Opp Zone Bonds (Hunt Refining Proj), Ser 2011I (GTD by Bank of Nova Scotia),
0.840%, 10–7–16 (E)		5,000		5,000
				29,546
TOTAL SHORT-TERM SECURITIES – 15.6%			$	37,384
(Cost: $37,383)
TOTAL INVESTMENT SECURITIES – 99.4%			$	238,179
(Cost: $222,787)
CASH AND OTHER ASSETS, NET OF LIABILITIES (F) – 0.6%				1,382
NET ASSETS – 100.0%			$	239,561

2016 SEMIANNUAL REPORT 99

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.

(B) Purchased on a when-issued basis with settlement subsequent to September 30, 2016.

(C) Zero coupon bond.

(D) Rate shown is the yield to maturity at September 30, 2016.

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

(F) Cash of $124 has been pledged as collateral on open futures contracts.

The following futures contracts were outstanding at September 30, 2016 (contracts unrounded):

Description	Type	Expiration Date	Number of Contracts		Value		Unrealized Appreciation
U.S. Treasury Long Bond	Short	12–30–16		30	$	(5,045)	$	77

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	6,776	$	—	$	—
Municipal Bonds		—		194,019		—
Short-Term Securities		—		37,384		—
Total	$	6,776	$	231,403	$	—
Futures Contracts	$	77	$	—	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

AGM = Assured Guaranty Municipal

AMBAC = American Municipal Bond Assurance Corp.

BAMAC = Build America Mutual Assurance Co.

BHAC = Berkshire Hathaway Assurance Corp.

CR = Custodial Receipts

FGIC = Financial Guaranty Insurance Co.

FHA = Federal Housing Administration

FHLMC = Federal Home Loan Mortgage Corp.

FNMA = Federal National Mortgage Association

GNMA = Government National Mortgage Association

GTD = Guaranteed

See Accompanying Notes to Financial Statements.

100 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY MUNICIPAL HIGH INCOME FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	0.1%
Bonds	95.7%
Municipal Bonds	95.5%
Corporate Debt Securities	0.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	4.2%

Lipper Rankings

Category: Lipper High Yield Municipal Debt Funds	Rank	Percentile
1 Year	133/159		84
3 Year	105/131		80
5 Year	89/111		80

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	31.2%
AA	1.8%
A	6.8%
BBB	22.6%
Non-Investment Grade	64.5%
BB	10.0%
B	7.5%
CCC	1.0%
Below CCC	4.2%
Non-rated	41.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Equities	4.3%

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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 101

SCHEDULE OF INVESTMENTS IVY MUNICIPAL HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Education Services – 0.1%
1155 Island Avenue LLC (A)		6,578	$	1,250
TOTAL COMMON STOCKS – 0.1%			$	1,250
(Cost: $1,074)
CORPORATE DEBT SECURITIES	Principal
Education – 0.2%
1155 Island Avenue LLC:
10.000%, 12–11–24 (A)(B)	$	2,960		2,960
10.000%, 12–11–24 (A)		395		395
				3,355
TOTAL CORPORATE DEBT SECURITIES – 0.2%			$	3,355
(Cost: $2,980)
MUNICIPAL BONDS
Alabama – 2.4%
AL 21st Century Auth, Tob Stlmt Rev Bonds, Ser 2012–A,
5.000%, 6–1–21		1,000		1,158
Fairfield, AL, GO Warrants, Ser 2012,
6.000%, 6–1–37		8,485		9,358
Jefferson Cnty, AL, Swr Rev Bonds, Ser 2013-D,
6.500%, 10–1–53		7,500		9,454
Lower AL Gas Dist, Gas Proj Rev Bonds, Ser 2016A,
5.000%, 9–1–46		9,000		11,915
				31,885
Alaska – 0.8%
Northn Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2006A Sr Cur Int Bonds,
5.000%, 6–1–46		10,500		10,403
American Samoa – 0.4%
American Samoa Econ Dev Auth, Gen Rev and Rfdg Bonds, Ser 2015A,
6.625%, 9–1–35		5,000		5,192
Arizona – 1.4%
Indl Dev Auth of Mohave Cnty, Correctional Fac Contract Rev Bonds (Mohave Prison LLC Expansion Proj), Ser 2008,
8.000%, 5–1–25		7,500		7,547
Indl Dev Auth of Pima, Edu Rev Bonds (Noah Webster Sch - Pima Proj), Tax-Exempt Ser 2014A,
7.000%, 12–15–43		1,500		1,728
Indl Dev Auth of Tempe, AZ, Rev Rfdg Bonds (Friendship Vlg of Tempe), Ser 2012A:
6.000%, 12–1–27		2,390		2,675
6.250%, 12–1–42		2,150		2,378
6.250%, 12–1–46		1,000		1,105

MUNICIPAL BONDS (Continued)	Principal		Value
Arizona (Continued)
Indl Dev Auth of Yavapai, Edu Rev Bonds (AZ Agribusiness and Equine Ctr, Inc. Proj), Ser 2011,
7.875%, 3–1–42	$	3,500	$	4,097
				19,530
California – 8.2%
Adelanto Pub Auth, Fixed Rate Rfdg Rev Bonds (Util Sys Proj), Ser 2009A,
6.750%, 7–1–39		4,000		4,502
CA Muni Fin Auth, Charter Sch Rev Bonds (Palmdale Aerospace Academy Proj), Ser 2016A,
5.000%, 7–1–41		1,750		1,897
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Ser 2009A,
8.750%, 10–1–39		1,505		1,844
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Taxable Ser 2009B,
8.000%, 10–1–22		400		481
CA Muni Fin Auth, Edu Fac Rev Bonds (Literacy First Proj), Ser 2010B,
6.000%, 9–1–30		2,040		2,279
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A,
5.000%, 10–1–42		1,200		1,312
CA Statewide Cmnty Dev Auth, Edu Fac Rev Bonds (Independence Support LLC Proj), Ser 2015,
7.000%, 6–1–45		4,000		3,695
CA Statewide Cmnty Dev Auth, Rev Bonds (Lancer Plaza Proj), Ser 2013:
5.625%, 11–1–33		1,400		1,503
5.875%, 11–1–43		1,890		2,035
CA Statewide Cmnty Dev Auth, Rev Bonds (Loma Linda Univ Med Ctr), Ser 2016A,
5.000%, 12–1–46		3,000		3,409
CA Statewide Cmnty Dev Auth, Sch Fac Rev Bonds (Aspire Pub Sch), Ser 2010:
6.000%, 7–1–40		7,365		8,196
6.350%, 7–1–46		250		280
CA Statewide Cmnty Dev Auth, Sr Living Rev Bonds (Southn CA Presbyterian Homes), Ser 2009:
6.625%, 11–15–24		2,490		2,880
7.000%, 11–15–29		2,000		2,310
7.250%, 11–15–41		6,000		6,929
CA Various Purp GO Bonds,
6.000%, 4–1–35		500		563
Cert of Part, Oro Grande Elem Sch Dist, Ser 2013,
5.125%, 9–15–42		2,760		3,103
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007A-1:
5.000%, 6–1–33		2,275		2,295
5.125%, 6–1–47		13,140		13,143

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part:
6.750%, 11–1–39	$	4,935	$	5,662
6.000%, 11–1–41		3,000		3,213
Redev Agy of San Buenaventura, Merged San Buenaventura Redev Proj, 2008 Tax Alloc Bonds,
8.000%, 8–1–38		100		104
San Buenaventura Rev Bonds (Cmnty Mem Hlth Sys), Ser 2011:
8.000%, 12–1–26		1,400		1,831
8.000%, 12–1–31		9,400		11,926
San Mateo Cmnty Fac Dist No. 2008-1 (Bay Meadows), Spl Tax Bonds, Ser 2012,
6.000%, 9–1–42		8,000		9,307
Tob Securitization Auth of Southn CA, Tob Stlmt Asset-Bkd Bonds (San Diego Cnty Tob Asset Securitization Corp.), Ser 2006A Sr Current Int Bonds,
5.000%, 6–1–37		17,395		17,396
				112,095
Colorado – 3.2%
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2008,
6.000%, 10–1–40		5,780		6,035
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2010,
6.125%, 10–1–40		5,000		5,516
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical Academy Proj), Ser 2008A,
7.400%, 12–1–38		85		97
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (Twin Peaks Charter Academy Proj), Ser 2008,
7.000%, 11–15–38		230		259
CO Edu and Cultural Fac Auth, Charter Sch Rev Dev and Rfdg Bonds (Windsor Charter Academy Proj), Ser 2016:
3.875%, 9–1–26		570		568
5.000%, 9–1–36		1,000		1,020
5.000%, 9–1–46		1,390		1,411
CO Edu and Cultural Fac Auth, Independent Sch Rev Rfdg Bonds (Vail Mountain Sch Proj), Ser 2010,
6.125%, 5–1–40		1,000		1,101
CO High Performance Trans Enterprise, U.S. 36 and I-25 Managed Lanes Sr Rev Bonds, Ser 2014,
5.750%, 1–1–44		3,250		3,603
CO Hlth Fac Auth, Rev Bonds (CO Sr Residences Proj), Ser 2012:
6.750%, 6–1–32 (C)		2,610		2,098
7.125%, 6–1–47 (C)		3,000		2,412

102 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MUNICIPAL HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Colorado (Continued)
CO Hlth Fac Auth, Rev Bonds (Total Longterm Care Natl Oblig Group Proj), Ser 2010A,
6.250%, 11–15–40	$	1,250	$	1,507
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax GO Rfdg and Impvt Bonds, Ser 2016A,
5.000%, 12–1–45		1,250		1,280
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax Subordinate GO Rfdg and Impvt Bonds, Ser 2016B,
7.250%, 12–15–45		500		494
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008,
6.200%, 12–1–37		3,500		3,717
Littleton Vlg Metro Dist No. 2, Ltd. Tax GO and Spl Rev Bonds, Ser 2015,
5.375%, 12–1–45		1,700		1,754
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010,
6.500%, 1–15–30		3,000		3,520
Sierra Ridge Metro Dist No. 2, Ltd. Tax GO Bonds, Ser 2016A:
4.500%, 12–1–31		750		766
5.500%, 12–1–46		1,500		1,585
Tallgrass Metro Dist, Arapahoe Cnty, CO, GO Ltd. Tax Rfdg and Impvt Bonds, Ser 2007,
5.250%, 12–1–37		3,500		3,527
Wildgrass Metro Dist, Broomfield Cnty, CO, GO Ltd. Tax Rfdg Bonds, Ser 2007,
6.200%, 12–1–34		1,511		1,525
				43,795
Connecticut – 0.7%
CT Hlth and Edu Fac Auth, Hlthcare Fac Expansion Rev Bonds (Church Home of Hartford, Inc. Proj), Ser 2016A,
5.000%, 9–1–46		1,000		1,104
Harbor Point Infra Impvt Dist (Harbor Point Proj), Spl Oblig Rev Bonds, Ser 2010A,
7.875%, 4–1–39		2,000		2,345
Stamford, CT, Spl Oblig Rev Bonds (Mill River Corridor Proj), Ser 2011A,
7.000%, 4–1–41		5,000		6,257
				9,706
Delaware – 0.6%
DE Econ Dev Auth, Exempt Fac Rev Bonds (Indian River Power LLC Proj), Ser 2010,
5.375%, 10–1–45		7,000		7,602

MUNICIPAL BONDS (Continued)	Principal		Value
District Of Columbia – 0.1%
Metro WA DC Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2010B,
0.000%, 10–1–44 (D)	$	1,000	$	1,208
Florida – 3.4%
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009:
6.500%, 11–1–29		875		962
6.750%, 11–1–39		2,060		2,278
Cap Trust Agy, First Mtg Rev Bonds (Silver Creek St. Augustin Proj), Ser 2014A,
8.250%, 1–1–49		3,000		2,648
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2016A,
5.750%, 1–1–50		645		645
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2016B,
7.000%, 1–1–35		555		555
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2010A:
6.000%, 9–15–40		4,000		4,214
6.125%, 6–15–43		5,500		6,079
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2014A:
6.000%, 6–15–34		110		116
6.125%, 6–15–44		5,300		5,555
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2015A,
6.000%, 6–15–35		2,000		2,117
FL Dev Fin Corp., Taxable Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2012B,
7.500%, 6–15–18		600		616
Lee Cnty Indl Dev Auth, Hlthcare Fac Rfdg Rev Bonds (Cypress Cove at Health Park FL, Inc. Proj), Ser 2012,
6.500%, 10–1–47		6,000		6,795
Miami-Dade Cnty Indl Dev Auth, Rev Bonds (Youth Co-Op Charter Sch Proj), Ser 2015A,
6.000%, 9–15–45		3,250		3,429
Mid-Bay Bridge Auth, 1st Sr Lien Rev Bonds, Ser 2015A,
5.000%, 10–1–40		2,000		2,317
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A,
7.250%, 10–1–40		4,800		6,203
Osceola Cnty, Expressway Sys Rev Bonds (Poinciana Prkwy Proj), Ser 2014A,
5.375%, 10–1–47		2,000		2,252
				46,781

MUNICIPAL BONDS (Continued)	Principal		Value
Georgia – 0.9%
Cobb Cnty, GA, Dev Auth Sr Living Rfdg Rev Bonds (Provident Vlg Creekside Proj), Ser 2016A:
6.000%, 7–1–36 (E)	$	1,250	$	1,253
6.000%, 7–1–51 (E)		2,000		1,972
Greene Cnty Dev Auth, GA, First Mtg Rev Bonds (Glen-I LLC Proj), Ser 2015A,
7.250%, 1–1–46		9,000		9,429
				12,654
Guam – 0.9%
Cert of Part (JFK High Sch Proj), Dept of Edu, GU, Ser 2010A:
6.625%, 12–1–30		1,400		1,532
6.875%, 12–1–40		3,500		3,859
Govt of GU, GO Bonds, Ser 2009A,
7.000%, 11–15–39		6,000		7,111
				12,502
Hawaii – 0.5%
Dept of Budget and Fin of HI, Spl Purp Sr Living Rev Bonds (15 Craigside Proj), Ser 2009A,
9.000%, 11–15–44		4,200		5,071
Kaua’I Cmnty Fac Dist No. 2008-1 (Kukul’ula Dev Proj), Spl Tax Rev Bonds, Ser 2012,
5.750%, 5–15–42		2,000		2,111
				7,182
Idaho – 0.1%
ID Hsng and Fin Assoc (Compass Pub Charter Sch, Inc. Proj), Ser 2010A:
6.250%, 7–1–40		1,000		1,072
6.250%, 7–1–45		550		588
				1,660
Illinois – 10.3%
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A,
5.700%, 5–1–36		4,160		4,206
Cert of Part, Metra Market of Chicago LLC Redev Proj, Ser A,
6.870%, 2–15–24		1,100		1,104
Chicago Midway Arpt, Second Lien Rev and Rev Rfdg Bonds, Ser 2014B,
5.000%, 1–1–35		4,500		5,190
Chicago Midway Arpt, Second Lien Rev Rfdg Bonds, Ser 2013B,
5.000%, 1–1–35		3,000		3,402
Chicago Multi-Fam Hsng Rev Bonds (Goldblatts Supportive Living Proj), Ser 2013,
6.125%, 12–1–43		6,000		5,714
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Bonds, Ser 2015D,
5.000%, 1–1–46		2,000		2,351

2016 SEMIANNUAL REPORT 103

SCHEDULE OF INVESTMENTS IVY MUNICIPAL HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois (Continued)
Chicago O’Hare Intl Arpt, Gen Arpt Third Lien Rev Bonds, Ser 2011A,
5.750%, 1–1–39	$	1,000	$	1,164
Cook Cnty, IL, Recovery Zone Fac Rev Bonds (Navistar Intl Corp. Proj), Ser 2010,
6.500%, 10–15–40		2,000		2,107
Fairview Heights, IL, Tax Incr Rfdg Rev Bonds (Shoppes at St. Clair Square Redev Proj), Ser 2009A,
8.000%, 12–1–28		150		157
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009,
6.500%, 4–1–44		12,000		13,108
IL Fin Auth, Rev Bonds (Admiral at the Lake Proj), Ser 2010A:
8.000%, 5–15–40		17,000		19,702
8.000%, 5–15–46		4,500		5,203
IL Fin Auth, Rev Bonds (Lutheran Home and Svs Oblig Group), Ser 2012,
5.625%, 5–15–42		5,300		5,734
IL Fin Auth, Rev Bonds (Navistar Intl Corp. Proj), Ser 2010,
6.500%, 10–15–40		9,500		10,007
IL Fin Auth, Rev Bonds (Silver Cross Hosp and Med Ctrs), Ser 2009,
7.000%, 8–15–44		7,000		8,207
IL Fin Auth, Rev Bonds (Three Crowns Park Proj), Ser 2006A:
5.875%, 2–15–26		1,000		1,002
5.875%, 2–15–38		3,000		3,004
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2009,
7.875%, 3–1–32		500		515
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2010,
7.500%, 3–1–32		1,500		1,542
SW IL Dev Auth, Local Govt Prog Rev Bonds (City of Belleville-Carlyle/Green Mount Redev Proj), Ser 2011A,
7.000%, 7–1–41		6,000		6,318
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2008,
7.000%, 12–1–22		1,630		1,797
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2009,
8.000%, 1–15–22		240		253
SW IL Dev Auth, Local Govt Prog Rev Rfdg Bonds (Granite City Proj), Ser 2012,
5.250%, 3–1–23		4,220		4,401
Upper IL River Vly Dev Auth (Pleasant View Luther Home Proj), Rev Bonds, Ser 2010:
7.250%, 11–15–40		1,100		1,191
7.375%, 11–15–45		1,500		1,622

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois (Continued)
Upper IL River Vly Dev Auth, Multi-Fam Hsng Rev Bonds (Deer Park of Huntley Proj), Ser 2012,
6.500%, 12–1–32	$	4,935	$	5,219
Vlg of Bridgeview, Cook Cnty, IL, GO Bonds, Ser 2015A:
5.750%, 12–1–35		2,705		2,985
5.625%, 12–1–41		3,365		3,614
Vlg of Bridgeview, Cook Cnty, IL, GO Rfdg Bonds, Ser 2014A,
5.500%, 12–1–43		5,000		5,149
Vlg of East Dundee, Kane and Cook Cnty, IL, Ltd. Oblig Tax Incr Rev Bonds (Route 25 South Redev Proj), Ser 2012,
5.625%, 12–1–31		1,505		1,530
Vlg of Matteson, Cook Cnty, IL, GO Cap Apprec Debt Cert, Ser 2010,
0.000%, 12–1–29 (D)		1,840		1,278
Vlg of Riverdale, Cook Cnty, IL, Unlimited Tax GO Bonds, Ser 2011,
8.000%, 10–1–36		9,910		10,942
				139,718
Indiana – 2.9%
City of Carmel, IN, Rev Bonds, Ser 2012A:
7.000%, 11–15–27		1,575		1,804
7.000%, 11–15–32		2,000		2,274
7.125%, 11–15–42		7,500		8,535
Hammond, IN, Redev Dist Rev Bonds (Marina Area Proj), Ser 2008,
6.000%, 1–15–17		5		5
IN Fin Auth, Midwestn Disaster Relief Rev Bonds (OH Vly Elec Corp. Proj), Ser 2012A,
5.000%, 6–1–39		10,000		10,776
Lake Station 2008 Bldg Corp., Lake Station, IN, First Mtg Bonds, Ser 2010,
6.000%, 7–15–27		3,170		3,488
Terre Haute, IN, Rev Bonds (Westminister Vlg Proj), Ser 2012,
6.000%, 8–1–39		5,000		5,172
Whitestown, IN, Econ Dev Tax Incr Rev Bonds (Perry Indl Park and Whitestown Crossing Proj), Ser 2010A,
7.000%, 2–1–30		1,880		2,003
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Lakefront Dev Proj), Ser 2010,
6.750%, 1–15–32		200		221
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Standard Avenue Proj), Ser 2006,
5.350%, 1–15–27		3,355		3,374
Whiting, IN, Redev Dist Tax Incr Rev Bonds, Ser 2016,
4.000%, 1–15–32		1,600		1,589
				39,241

MUNICIPAL BONDS (Continued)	Principal		Value
Iowa – 0.2%
IA Fin Auth, Ret Cmnty Rev Bonds (Edgewater LLC Proj), Ser 2007A,
6.750%, 11–15–37	$	3,000	$	3,200
Kansas – 1.0%
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009,
7.000%, 9–1–38		500		524
Atchison, KS, Hosp Rev Bonds (Atchison Hosp Assoc), Ser 2009,
4.480%, 9–1–30 (F)		1,000		1,019
Kansas City, Wyandotte Cnty, KS, Unif Govt Spl Oblig Rev Sales Tax Bonds (Vacation Vlg Proj), Ser 2015A,
5.750%, 9–1–32		4,000		4,145
Lawrence, KS (The Bowersock Mills & Power Co. Hydroelec Proj), Indl Rev Bonds (Recovery Zone Fac Bonds), Ser 2010A,
7.625%, 8–1–37		4,000		4,318
Unif Govt of Wyandotte Cnty, Kansas City, KS, Spl Oblig Rfdg and Impvt Rev Bonds (Wyandotte Plaza Redev Proj), Ser 2016,
5.000%, 12–1–34		3,000		3,123
				13,129
Kentucky – 2.1%
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A:
6.375%, 6–1–40		12,000		13,718
6.500%, 3–1–45		6,000		6,876
KY Pub Trans Infra Auth, First Tier Toll Rev Bonds, Ser 2013A,
5.750%, 7–1–49		5,000		5,888
Murray, KY, Hosp Fac Rev Bonds (Murray-Calloway Cnty Pub Hosp Corp. Proj), Ser 2010,
6.375%, 8–1–40		2,000		2,217
				28,699
Louisiana – 1.4%
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Rev and Rfdg Bonds (CDF Hlthcare of LA LLC Proj), Ser 2015A,
5.625%, 6–1–45		5,000		5,266
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj - Phase IIA), Ser 2014A,
8.375%, 7–1–39 (C)		13,500		7,782
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj), Ser 2013B,
10.500%, 7–1–39 (C)		6,000		3,457
Shreveport, LA, Water and Sewer Rev and Rfdg Bonds, Ser 2015,
5.000%, 12–1–40		2,500		2,935
				19,440

104 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MUNICIPAL HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Maine – 0.2%
ME Hlth and Higher Edu Fac Auth, Rev Bonds (Eastn ME Med Ctr Oblig Group Issue), Ser 2013,
5.000%, 7–1–43	$	2,000	$	2,236
Maryland – 0.3%
MD Econ Dev Corp., Econ Dev Rev Bonds (Terminal Proj), Ser B,
5.750%, 6–1–35		500		557
MD Econ Dev Corp., Port Fac Rfdg Rev Bonds (CNX Marine Terminals, Inc. Port of Baltimore Fac), Ser 2010,
5.750%, 9–1–25		3,350		3,412
				3,969
Massachusetts – 1.9%
MA Port Auth, Spl Fac Rev Bonds (Delta Air Lines, Inc. Proj), Ser 2001B (Auction Rate Sec) (Insured by AMBAC),
1.484%, 1–1–31 (F)		30,000		26,400
Michigan – 4.9%
Detroit, MI, GO Bonds, Ser 2004-A (1) (Insured by AMBAC),
5.250%, 4–1–23		220		220
Econ Dev Corp. of Oakland Cnty, Ltd. Oblig Rev Rfdg Bonds (The Roman Catholic Archdiocese of Detroit), Ser 2011,
6.500%, 12–1–20		3,905		4,120
Kent Hosp, Fin Auth Rev Bonds (Metro Hosp Proj), Ser 2005A,
6.250%, 7–1–40		15,500		15,542
MI Fin Auth, Hosp Rev and Rfdg Bonds (Presbyterian Vlg of MI), Ser 2015,
5.250%, 11–15–35		3,000		3,190
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev and Rev Rfdg Bonds (MI Technical Academy Proj), Ser 2012:
7.100%, 10–1–31		1,000		1,027
7.450%, 10–1–41		2,000		2,061
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev Bonds (Hanley Intl Academy, Inc. Proj), Ser 2010A,
6.125%, 9–1–40		4,535		4,824
MI Fin Auth, Rev Bonds (Sch Dist of Detroit), Ser 2012,
5.000%, 6–1–20		1,425		1,475
MI Fin Auth, Sr Edu Fac Rev Bonds (St. Catherine of Siena Academy Proj), Ser 2010A,
8.500%, 10–1–45 (C)		13,000		7,799
MI Fin Auth, State Aid Rev Notes (Detroit Sch Dist), Ser 2001A-1,
8.000%, 10–1–30 (C)		2,480		1,488
MI Pub Edu Fac Auth, Ltd. Oblig Rev Bonds (Old Redford Academy Proj), Ser 2005A,
5.875%, 12–1–30		1,720		1,721

MUNICIPAL BONDS (Continued)	Principal		Value
Michigan (Continued)
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Ser 2008A,
6.875%, 6–1–42	$	16,500	$	16,979
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Sr Current Int Bonds, Ser 2007A,
5.125%, 6–1–22		5,660		5,611
				66,057
Minnesota – 0.4%
Minneapolis Hlth Care Sys Rev Bonds (Fairview Hlth Svc), Ser 2008B,
6.500%, 11–15–38		4,350		4,820
Missouri – 1.7%
Arnold, MO, Real Ppty Tax Incr Rev Bonds (Arnold Triangle Redev Proj), Ser 2009A,
7.750%, 5–1–28		455		478
Belton, MO, Tax Incr Rev Bonds (Belton Marketplace Redev Proj), Ser 2012,
6.375%, 12–1–29		1,240		1,286
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A,
6.125%, 12–1–36		200		161
Grindstone Plaza Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A:
5.250%, 10–1–21		250		249
5.400%, 10–1–26		385		376
5.500%, 10–1–31		425		406
5.550%, 10–1–36		325		304
Jennings, MO, Tax Incr and Cmnty Impvt Rfdg Rev Bonds (Northland Redev Area Proj), Ser 2006,
5.000%, 11–1–23		1,615		1,599
Lakeside 370 Levee Dist (St. Charles Cnty, MO), Levee Dist Impvt Bonds, Ser 2008:
0.000%, 4–1–55 (D)		988		147
5.750%, 4–1–55		715		701
Land Clearance for Redev Auth of St. Louis, Recovery Zone Fac Bonds (Kiel Opera House Proj), Ser 2010B,
7.000%, 9–1–35		970		1,016
Lee’s Summit, MO, Tax Incr Rev Bonds (Summit Fair Proj), Ser 2011,
7.250%, 4–1–30		5,000		5,376
Meadows Trans Dev Dist (Lake Saint Louis, MO), Ser 2010,
5.400%, 5–1–35		790		816
MO Dev Fin Board, Research Fac Rev Bonds (Midwest Research Institute Proj), Ser 2007,
4.500%, 11–1–27		225		234
St. Louis Muni Fin Corp., Compound Int Leasehold Rev Bonds (Convention Ctr Cap Impvt Proj), Ser 2010A (Insured by AGM):
0.000%, 7–15–36 (D)		750		377
0.000%, 7–15–37 (D)		1,500		727

MUNICIPAL BONDS (Continued)	Principal		Value
Missouri (Continued)
Tax Incr Fin Comsn of Kansas City, MO, Tax Incr Rev Bonds (Brywood Ctr Proj), Ser 2010A,
8.000%, 4–1–33 (C)	$	3,950	$	1,381
The Elm Point Commons Cmnty Impvt Dist (St. Charles, MO), Spl Assmt Bonds, Ser 2007,
5.750%, 3–1–27		105		108
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		1,035		1,038
6.500%, 1–1–35		3,000		3,006
The Indl Dev Auth of Lee’s Summit, MO, Infra Fac Rev Bonds (Kensington Farms Impvt Proj), Ser 2007,
5.750%, 3–1–29 (C)		1,000		617
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007,
6.850%, 4–1–29		200		215
The Indl Dev Auth of St. Joseph, MO, Hlthcare Rev Bonds (Living Cmnty of St. Joseph Proj), Ser 2002,
7.000%, 8–15–32		3,000		3,006
				23,624
Nebraska – 0.7%
Cent Plains Enrg Proj, Gas Proj Rev Bonds (Proj No. 3), Ser 2012:
5.250%, 9–1–37		5,000		5,788
5.000%, 9–1–42		3,000		3,412
				9,200
Nevada – 0.2%
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A,
8.000%, 6–15–30		1,500		1,778
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008,
8.000%, 12–1–38		265		305
				2,083
New Hampshire – 0.2%
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A,
6.875%, 7–1–41		2,300		2,700
New Jersey – 2.1%
NJ Econ Dev Auth, Cigarette Tax Rev Rfdg Bonds, Ser 2012:
5.000%, 6–15–26		1,000		1,116
5.000%, 6–15–28		1,000		1,100
5.000%, 6–15–29		500		548
NJ Econ Dev Auth, Spl Fac Rev Bonds (Continental Airlines, Inc. Proj), Ser 2000A,
5.625%, 11–15–30		2,500		2,899

2016 SEMIANNUAL REPORT 105

SCHEDULE OF INVESTMENTS IVY MUNICIPAL HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
New Jersey (Continued)
NJ Edu Fac Auth, Rev Rfdg Bonds, Univ of Medicine and Dentistry of NJ Issue, Ser 2009B:
7.125%, 12–1–23	$	850	$	987
7.500%, 12–1–32		450		527
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds (Univ Hosp Issue), Ser 2015A,
5.000%, 7–1–46		2,355		2,736
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007-1A Sr Current Int Bonds,
4.750%, 6–1–34		5,000		4,819
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007-1A,
5.000%, 6–1–41		13,750		13,386
				28,118
New Mexico – 0.2%
NM Hosp Equip Loan Council, Hosp Impvt and Rfdg Rev Bonds (Gerald Champion Rgnl Med Ctr Proj), Ser 2012A,
5.500%, 7–1–42		2,750		3,065
New York – 6.3%
Brooklyn Arena Local Dev Corp., PILOT Rev Rfdg Bonds (Barclays Ctr), Ser 2016A (Insured by AGM),
5.000%, 7–15–42		2,000		2,373
Build NYC Res Corp., Rev Bonds (Albert Einstein Sch of Medicine, Inc. Proj), Ser 2015,
5.500%, 9–1–45		2,400		2,866
Dormitory Auth, Sch Dist Rev Bond Fin Prog, Ser 2010A (Insured by AGM),
5.000%, 10–1–22		1,000		1,150
MTA Hudson Rail Yards Trust Oblig, Ser 2016A,
5.000%, 11–15–56		5,000		5,771
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A2,
6.500%, 1–1–32		5,269		5,341
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A4,
6.700%, 1–1–49		9,000		9,039
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A5,
6.700%, 1–1–49		2,179		2,190
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014B,
5.500%, 7–1–20		3,768		3,790

MUNICIPAL BONDS (Continued)	Principal		Value
New York (Continued)
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014C,
2.000%, 1–1–49	$	7,730	$	966
Nassau Cnty Tob Stlmnt Corp., Tob Stlmnt Asset-Bkd Bonds, Ser 2006A-3 Sr Current Int Bonds,
5.125%, 6–1–46		7,000		6,925
NY Liberty Dev Corp., Rev Bonds (3 World Trade Center Proj), Ser 2014,
5.000%, 11–15–44		25,000		28,871
The Orange Co. Funding Corp. (NY), Assisted Living Residence Rev Bonds (The Hamlet at Wallkill Assisted Living Proj), Ser 2012,
6.500%, 1–1–46		11,500		11,825
TSASC, Inc., Tob Stlmt Asset-Bkd Bonds, Ser 2006-1,
5.000%, 6–1–34		5,000		5,006
				86,113
North Carolina – 0.1%
NC Med Care Comsn, Ret Fac First Mtg Rev Bonds (Galloway Ridge Proj), Ser 2010A,
6.000%, 1–1–39		1,520		1,637
Ohio – 1.4%
Cleveland-Cuyahoga Cnty Port Auth, Dev Rev Bonds (Flats East Dev Proj), Ser 2010B,
7.000%, 5–15–40		2,530		2,881
Cnty of Muskingum, OH, Hosp Fac Rev Bonds (Genesis Hlth Care Sys Oblig Group Proj), Ser 2013,
5.000%, 2–15–48		8,000		8,642
Columbus-Franklin Cnty Fin Auth, Dev Rev Bonds (Cent OH Rgnl Bond Fund), (One Neighborhood Proj), Ser 2010A,
6.500%, 11–15–39		1,225		1,264
Greene Cnty Port Auth, Adult Svc Fac Rev Bonds (Greene, Inc. Proj), Ser 2009,
7.500%, 12–1–33		500		587
SE OH Port Auth, Hosp Fac Rev Rfdg and Impvt Bonds (Mem Hlth Sys of OH), Ser 2012,
6.000%, 12–1–42		3,750		4,286
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (Toledo Sch for the Arts Proj), Ser 2007B,
5.500%, 5–15–28		795		820
				18,480
Oklahoma – 0.7%
OK Cnty Fin Auth, Ret Fac Rev Bonds (Concordia Life Care Cmnty), Ser 2005:
6.125%, 11–15–25		2,000		2,004
6.000%, 11–15–38		7,495		7,502
				9,506

MUNICIPAL BONDS (Continued)	Principal		Value
Oregon – 0.9%
Hosp Fac Auth of Deschutes Cnty, OR, Hosp Rev Rfdg Bonds (Cascade Hlthcare Cmnty, Inc.), Ser 2008,
8.250%, 1–1–38	$	1,240	$	1,443
Hosp Fac Auth of Salem, OR, Rev Rfdg Bonds (Cap Manor, Inc.), Ser 2012,
6.000%, 5–15–42		1,900		2,137
OR Fac Auth, Rev Bonds (Concordia Univ Proj), Ser 2010A:
6.125%, 9–1–30		900		973
6.375%, 9–1–40		1,750		1,900
Port of Portland, OR, Portland Intl Arpt Passenger Fac Charge Rev Bonds, Ser 2011A,
5.500%, 7–1–30		5,180		6,034
				12,487
Pennsylvania – 5.2%
Butler Cnty Hosp Auth, Hosp Rev Bonds (Butler Hlth Sys Proj), Ser 2009B,
7.250%, 7–1–39		200		234
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2010,
6.125%, 1–1–45		5,000		5,378
Delaware Cnty Indl Dev Auth, Charter Sch Rev Bonds (Chester Cmnty Charter Sch Proj), Ser 2010A,
6.125%, 8–15–40		14,500		14,612
PA Higher Edu Fac Auth, Rev Bonds (Edinboro Univ Fndtn Student Hsng Proj at Edinboro Univ of PA), Ser 2010,
6.000%, 7–1–43		2,530		2,993
PA Higher Edu Fac Auth, Student Hsng Rev Bonds (Univ Ppty, Inc. Student Hsng Proj at East Stroudsburg Univ of PA), Ser 2010,
6.000%, 7–1–21		1,000		1,122
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009E,
0.000%, 12–1–38 (D)		18,000		22,568
Philadelphia Auth Indl Dev, Rev Bonds (Global Leadership Academy Charter Sch Proj), Ser 2010,
6.375%, 11–15–40		1,000		1,100
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011:
7.150%, 12–15–36		6,000		6,740
7.625%, 12–15–41		6,925		7,960
Philadelphia Auth Indl Dev, Rev Bonds (New Foundations Charter Sch Proj), Ser 2012,
6.625%, 12–15–41		3,500		3,982
Philadelphia, PA, Gas Works Rev Bonds (1998 Gen Ordinace), Ninth Ser:
5.250%, 8–1–40		1,250		1,426

106 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MUNICIPAL HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Pennsylvania (Continued)
Scranton-Lackawanna Hlth and Welfare Auth, Univ Rev Bonds (Marywood Univ Proj), Ser 2016,
5.000%, 6–1–46	$	2,265	$	2,427
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		17
				70,559
Puerto Rico – 4.2%
Cmnwlth of PR, GO Bonds of 2014, Ser A,
8.000%, 7–1–35 (C)		11,000		7,205
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2011C,
6.500%, 7–1–40 (C)		3,000		1,890
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2012A:
5.750%, 7–1–28 (C)		3,000		1,881
5.500%, 7–1–39 (C)		5,000		3,175
PR Aqueduct and Sewer Auth, Rev Bonds, Ser 2012A (Sr Lien),
5.250%, 7–1–24		9,000		6,968
PR Aqueduct and Sewer Auth, Rev Bonds, Ser A,
6.000%, 7–1–47		12,000		9,266
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX,
5.750%, 7–1–36		2,415		1,627
PR Elec Power Auth, Power Rev Bonds, Ser 2012A,
5.000%, 7–1–42		5,000		3,370
PR Elec Power Auth, Power Rev Bonds, Ser 2013A,
7.000%, 7–1–43		14,000		9,517
PR Pub Bldg Auth, Govt Fac Rev Rfdg Bonds, Ser U,
5.250%, 7–1–42 (C)		8,755		5,001
PR Pub Fin Corp. (Cmnwlth Approp Bonds), 2011 Ser B:
6.000%, 8–1–25 (C)		5,025		488
6.000%, 8–1–26 (C)		1,000		97
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2009A,
6.375%, 8–1–39		5,500		2,962
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2010A,
5.375%, 8–1–39		5,000		2,632
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2010C,
6.500%, 8–1–35		1,000		561
				56,640
South Carolina – 0.1%
Piedmont Muni Pwr Agy, SC, Elec Rev Rfdg Bonds, Ser 2008C,
5.750%, 1–1–34		1,550		1,834
Tennessee – 0.2%
Metro Nashville Arpt Auth, Arpt Impvt Rev Bonds, Ser 2015A,
5.000%, 7–1–40		2,000		2,394

MUNICIPAL BONDS (Continued)	Principal		Value
Texas – 14.5%
Arlington, TX, Higher Edu Fin Corp., Edu Rev Bonds (Wayside Sch), Ser 2016A,
4.375%, 8–15–36	$	640	$	650
Cap Area Cultural Edu Fac Fin Corp., Rev Bonds (The Roman Catholic Diocese of Austin), Ser 2005B,
6.125%, 4–1–45		3,150		3,586
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Bonds, Ser 2009A,
9.500%, 3–1–33		500		595
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2010:
0.000%, 1–1–36 (D)		500		248
0.000%, 1–1–40 (D)		500		211
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2015A,
5.000%, 1–1–45		4,000		4,635
Cent TX Rgnl Mobility Auth, Sub Lien Rev Rfdg Bonds, Ser 2013:
5.000%, 1–1–33		6,000		6,770
5.000%, 1–1–42		3,000		3,322
Dallas/Fort Worth Intl Arpt, Joint Rev Impvt Bonds, Ser 2013A,
5.000%, 11–1–45		8,000		8,867
Grand Prkwy Trans Corp., First Tier Toll Rev Bonds, Ser 2013A,
5.500%, 4–1–53		10,000		11,521
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		120		132
9.000%, 9–1–38		1,245		1,364
Harris Cnty Cultural Edu Fac Fin Corp., Rev Rfdg Bonds (Space Ctr Houston Proj), Sr Ser 2009,
7.000%, 8–15–28		500		542
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008:
6.000%, 2–15–33		2,000		2,072
6.000%, 2–15–38		250		259
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A,
6.875%, 5–15–41		3,800		4,803
Houston, TX, Arpt Sys Spec Fac Rev Rfdg Bonds (United Airlines, Inc. Arpt Impvt Proj), Ser 2015C,
5.000%, 7–15–20		10,000		11,059
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2011B:
5.000%, 7–1–25		1,000		1,165
5.000%, 7–1–26		2,680		3,123
La Vernia Higher Edu Fin Corp. (KIPP, Inc.), Ser 2009A,
6.375%, 8–15–44		2,000		2,304
La Vernia Higher Edu Fin Corp. (Winfree Academy Charter Sch), Edu Rev Bonds, Ser 2009,
9.000%, 8–15–38		2,425		2,686

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
Mission Econ Dev Corp., Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff LLC Proj), Ser 2011,
6.875%, 12–1–24	$	2,540	$	2,621
New Hope Cultural Edu Fac Fin Corp., TX Ret Fac Rev Bonds (Carillon Lifecare Cmnty Proj), Ser 2016:
5.000%, 7–1–36		1,250		1,314
5.000%, 7–1–46		2,000		2,084
North TX Twy Auth, Spl Proj Sys Rev Bonds Convertible Cap Apprec Bonds, Ser 2011C,
0.000%, 9–1–43 (D)		11,000		11,900
Pharr, TX, Higher Edu Fin Auth, Edu Rev Bonds (Idea Pub Sch), Ser 2009A:
6.250%, 8–15–29		350		390
6.500%, 8–15–39		200		228
Sanger, TX, Indl Dev Corp., Indl Dev Rev Bonds (TX Pellets Proj), Ser 2012B,
8.000%, 7–1–38		12,870		11,196
Tarrant Cnty Cultural Edu Fac Fin Corp. Ret Fac Rev Bonds (Air Force Vig Oblig Group Proj), Ser 2016,
5.000%, 5–15–45 (E)		4,000		4,385
Tarrant Cnty Cultural Edu Fac Fin Corp., Charter Sch Rev Bonds (Trinity Basin Preparatory Proj), Ser 2009A,
7.750%, 6–1–39		155		183
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty Proj), Ser 2015B-1,
4.500%, 11–15–21		6,000		6,052
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2007:
5.500%, 11–15–22		2,000		2,062
5.625%, 11–15–27		250		257
5.750%, 11–15–37		6,840		6,985
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Mirador Proj), Ser 2010A:
8.000%, 11–15–29		2,500		2,131
8.125%, 11–15–39		5,000		4,265
TX Muni Gas Acquisition and Supply Corp. III, Gas Supply Rev Bonds, Ser 2012,
5.000%, 12–15–32		3,000		3,401
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (LBJ Infra Group LLC IH-635 Managed Lanes Proj), Ser 2010:
7.500%, 6–30–32		2,000		2,429
7.500%, 6–30–33		2,700		3,283
7.000%, 6–30–40		13,430		16,066

2016 SEMIANNUAL REPORT 107

SCHEDULE OF INVESTMENTS IVY MUNICIPAL HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009,
6.875%, 12–31–39	$	12,975	$	15,260
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2010A,
6.200%, 2–15–40		10,000		11,721
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Odyssey Academy, Inc.), Ser 2010A,
7.125%, 2–15–40		2,000		2,408
TX Trans Comsn, Cent TX Tpk Sys First Tier Rev Rfdg Bonds, Ser 2012-A,
5.000%, 8–15–41		10,000		11,517
Wise Cnty, TX, Lease Rev Bonds (Parker Cnty Jr College Dist Proj), Ser 2011,
8.000%, 8–15–34		5,000		6,001
				198,053
Utah – 0.4%
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Davis Preparatory Academy), Ser 2010,
6.250%, 7–15–30		1,015		1,113
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Star Academy Proj), Ser 2010B,
7.000%, 7–15–45		2,100		2,350
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (Paradigm High Sch), Ser 2010,
6.375%, 7–15–40		2,160		2,319
				5,782
Virgin Islands – 0.7%
VI Pub Fin Auth, Rev Bonds (VI Matching Fund Loan Note), Ser 2010A,
5.000%, 10–1–25		3,330		3,328
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note - Diageo Proj), Ser 2009A:
6.625%, 10–1–29		3,135		3,247
6.750%, 10–1–37		3,000		3,118
				9,693
Virginia – 2.0%
Econ Dev Auth of James City Cnty, VA, Residential Care Fac Rev Bonds (VA Utd Methodist Homes of Williamsburg, Inc.), Ser 2013A:
6.000%, 6–1–43		3,039		3,037
2.000%, 10–1–48		983		46
Indl Dev Auth of Smyth Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009A,
8.000%, 7–1–38		450		511

MUNICIPAL BONDS (Continued)	Principal		Value
Virginia (Continued)
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C:
7.250%, 7–1–19	$	365	$	398
7.500%, 7–1–29		25		28
Mosaic Dist Cmnty Dev Auth, Fairfax Cnty, VA, Rev Bonds, Ser 2011A,
6.875%, 3–1–36		4,300		4,948
Norfolk Redev and Hsng Auth, Multifam Rental Hsng Fac Rev Bonds (1016 L.P. - Sussex Apt Proj), Ser 1996,
8.000%, 9–1–26		350		350
VA Small Business Fin Auth, Sr Lien Rev Bonds (Elizabeth River Crossing Opco LLC Proj), Ser 2012:
6.000%, 1–1–37		8,000		9,573
5.500%, 1–1–42		7,500		8,668
				27,559
Washington – 1.6%
Indl Dev Corp of the Port of Seattle, Spl Fac Rev Rfdg Bonds (Delta Air Lines, Inc. Proj), Ser 2012,
5.000%, 4–1–30		4,000		4,335
Port of Sunnyside, Yakima Cnty, WA, Rev Bonds (Indl Wastewater Treatment Sys), Ser 2008,
6.625%, 12–1–21		1,775		1,889
WA Hlth Care Fac Auth, Rev Bonds (Cent WA Hlth Svcs Assoc), Ser 2009:
6.250%, 7–1–24		795		903
7.000%, 7–1–31		1,680		1,959
7.000%, 7–1–39		2,000		2,333
WA Hlth Care Fac Auth, Rev Bonds (Seattle Cancer Care Alliance), Ser 2008,
7.375%, 3–1–38		250		288
WA State Hsng Fin Comsn (Rockwood Ret Cmnty Proj), Nonprofit Hsng Rev and Rfdg Rev Bonds, Ser 2014A,
7.500%, 1–1–49		8,000		9,604
				21,311
West Virginia – 0.3%
Brooke Cnty, WV, Rev Bonds (Bethany College), Ser 2011A,
6.750%, 10–1–37		4,000		4,457
Wisconsin – 2.6%
Pub Fin Auth, Edu Rev Bonds (NC Charter Edu Fndtn Proj), Ser 2016A,
5.000%, 6–15–46		6,000		6,019
Pub Fin Auth, Sr Arpt Fac Rev and Rfdg Bonds (TrIps Obligated Group), Ser 2012B,
5.000%, 7–1–42		5,000		5,367
WI Hlth and Edu Fac Auth, Rev Bonds (Beloit College), Ser 2010A:
6.125%, 6–1–35		1,220		1,444
6.125%, 6–1–39		250		296

MUNICIPAL BONDS (Continued)	Principal		Value
Wisconsin (Continued)
WI Hlth and Edu Fac Auth, Rev Bonds (Saint John’s Cmnty, Inc.), Ser 2009:
7.250%, 9–15–29	$	2,180	$	2,543
7.625%, 9–15–39		5,500		6,538
WI Hlth and Edu Fac Auth, Rev Bonds (Woodland Hills Sr Hsng Proj), Ser 2014,
5.000%, 12–1–44		4,000		4,211
WI Pub Fin Auth, Edu Rev Bonds (Cornerstone Charter Academy Proj), Ser 2016A,
5.125%, 2–1–46		4,000		4,095
WI Pub Fin Auth, Edu Rev Bonds (Triad Edu Svc), Ser 2015A,
5.500%, 6–15–45		4,000		4,188
				34,701
TOTAL MUNICIPAL BONDS – 95.5%			$	1,299,100
(Cost: $1,239,444)
SHORT-TERM SECURITIES
Commercial Paper (G) – 0.5%
Clorox Co. (The),
0.770%, 10–13–16		2,500		2,499
Medtronic Global Holdings SCA,
0.740%, 11–14–16		5,000		4,995
				7,494
Master Note – 0.1%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (H)		721		721
Municipal Obligations – 1.9%
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2005 (GTD by U.S. Bank N.A.),
0.850%, 10–7–16 (H)		700		700
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.),
0.850%, 10–7–16 (H)		1,400		1,400
Dev Auth of Monroe Cnty, Pollutn Ctl Rev Bonds (GA Power Co. Plant Scherer Proj), First Ser 2008 (GTD by Georgia Power Co.),
0.930%, 10–1–16 (H)		2,475		2,475
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.),
0.850%, 10–7–16 (H)		3,600		3,600
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008B (Tax-Exempt), (GTD by U.S. Bank N.A.),
0.860%, 10–7–16 (H)		1,300		1,300

108 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY MUNICIPAL HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser A (Taxable), (GTD by Wells Fargo Bank N.A.),
0.770%, 10–7–16	$	2,520	$	2,520
NY Hsng Fin Agy, Hsng Rev Bonds, Ser 2016A (GTD by JPMorgan Chase Bank N.A.),
0.840%, 10–7–16 (H)		2,000		2,000
NY Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2012A (GTD by Bank of America N.A.),
0.840%, 10–7–16 (H)		6,000		6,000
NY Metro Trans Auth, Trans Rev Var Rate Bonds, Ser 2005E-3 (GTD by Bank of Montreal),
0.860%, 10–7–16 (H)		4,000		4,000

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
Tuscaloosa Cnty Indl Dev Auth, Gulf Opp Zone Bonds (Hunt Refining Proj), Ser 2011I (GTD by Bank of Nova Scotia),
0.840%, 10–7–16 (H)	$	2,000	$	2,000
				25,995
TOTAL SHORT-TERM SECURITIES – 2.5%			$	34,210
(Cost: $34,211)
TOTAL INVESTMENT SECURITIES – 98.3%			$	1,337,915
(Cost: $1,277,709)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.7% (I)				22,679
NET ASSETS – 100.0%			$	1,360,594

Notes to Schedule of Investments

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

(B) Payment-in-kind bonds.

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

(D) Zero coupon bond.

(E) Purchased on a when-issued basis with settlement subsequent to September 30, 2016.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016.

(G) Rate shown is the yield to maturity at September 30, 2016.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

(I) Cash of $998 has been pledged as collateral on open futures contracts.

The following futures contracts were outstanding at September 30, 2016 (contracts unrounded):

Description	Type	Expiration Date	Number of Contracts	Value			Unrealized Appreciation
U.S. Treasury Long Bond	Short	12-30-16	242	$	(40,694	)	$	637

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	—	$	1,250	$	—
Corporate Debt Securities		—		3,355		—
Municipal Bonds		—		1,299,100		—
Short-Term Securities		—		34,210		—
Total	$	—	$	1,337,915	$	—
Futures Contracts	$	637	$	—	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

AMBAC = American Municipal Bond Assurance Corp.

AGM = Assured Guaranty Municipal

GTD = Guaranteed

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 109

PORTFOLIO HIGHLIGHTS IVY SMALL CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	93.3%
Information Technology	32.6%
Health Care	19.1%
Consumer Discretionary	17.9%
Industrials	8.6%
Financials	5.3%
Energy	4.7%
Real Estate	1.9%
Materials	1.8%
Consumer Staples	1.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	6.7%

Lipper Rankings

Category: Lipper Small-Cap Growth Funds	Rank	Percentile
1 Year	204/563		37
3 Year	196/502		39
5 Year	236/446		53
10 Year	46/317		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	Industry
Ultimate Software Group, Inc. (The)	Information Technology	Application Software
Vail Resorts, Inc.	Consumer Discretionary	Leisure Facilities
Watsco, Inc.	Industrials	Trading Companies & Distributors
AMN Healthcare Services, Inc.	Health Care	Health Care Services
SVB Financial Group	Financials	Regional Banks
Pool Corp.	Consumer Discretionary	Distributors
Booz Allen Hamilton Holding Corp.	Information Technology	IT Consulting & Other Services
Paycom Software, Inc.	Information Technology	Application Software
Nevro Corp.	Health Care	Health Care Equipment
DexCom, Inc.	Health Care	Health Care Equipment

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

110 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY SMALL CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel Retail – 1.2%
Burlington Stores, Inc. (A)		143	$	11,553
Apparel, Accessories & Luxury Goods – 0.7%
Oxford Industries, Inc.		107		7,238
Automotive Retail – 1.4%
Monro Muffler Brake, Inc.		214		13,109
Broadcasting – 0.3%
Townsquare Media, Inc. (A)		289		2,703
Casinos & Gaming – 0.9%
Penn National Gaming, Inc. (A)		618		8,385
Distributors – 3.8%
Core-Mark Holding Co., Inc.		404		14,463
Pool Corp.		235		22,184
				36,647
General Merchandise Stores – 1.0%
Ollie’s Bargain Outlet Holdings, Inc. (A)		383		10,041
Homebuilding – 1.0%
Installed Building Products, Inc. (A)		279		9,997
Leisure Facilities – 3.4%
Vail Resorts, Inc.		212		33,204
Restaurants – 3.3%
Dave & Buster’s Entertainment, Inc. (A)		443		17,339
Texas Roadhouse, Inc., Class A		371		14,473
				31,812
Specialty Stores – 0.9%
Party City Holdco, Inc. (A)		515		8,813
Total Consumer Discretionary – 17.9%				173,502
Consumer Staples
Packaged Foods & Meats – 1.4%
Lance, Inc.		420		14,087
Total Consumer Staples – 1.4%				14,087
Energy
Oil & Gas Drilling – 0.4%
Patterson-UTI Energy, Inc.		155		3,458
Oil & Gas Equipment & Services – 0.4%
Superior Energy Services, Inc.		219		3,913
Oil & Gas Exploration & Production – 3.9%
Matador Resources Co. (A)		343		8,346
Parsley Energy, Inc., Class A (A)		232		7,764
Petroleum Development Corp. (A)		126		8,416

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Exploration & Production (Continued)
RSP Permian, Inc. (A)		210	$	8,129
Viper Energy Partners L.P.		341		5,512
				38,167
Total Energy – 4.7%				45,538
Financials
Asset Management & Custody Banks – 0.4%
Janus Capital Group, Inc.		81		1,129
WisdomTree Investment, Inc.		286		2,938
				4,067
Regional Banks – 4.9%
Ameris Bancorp		111		3,890
Cathay General Bancorp		119		3,647
Home BancShares, Inc.		680		14,152
SVB Financial Group (A)		230		25,409
				47,098
Total Financials – 5.3%				51,165
Health Care
Health Care Equipment – 8.5%
DexCom, Inc. (A)		214		18,768
Inogen, Inc. (A)		247		14,777
K2M Group Holdings, Inc. (A)		117		2,082
Nevro Corp. (A)		185		19,281
NuVasive, Inc. (A)		125		8,312
NxStage Medical, Inc. (A)		405		10,131
Orthofix International N.V. (A)		69		2,938
Penumbra, Inc. (A)		89		6,794
				83,083
Health Care Facilities – 2.9%
AmSurg Corp. (A)		227		15,207
Surgical Care Affiliates, Inc. (A)		266		12,955
				28,162
Health Care Services – 3.8%
AMN Healthcare Services, Inc. (A)		831		26,478
Ensign Group, Inc. (The)		407		8,184
Envision Healthcare Holdings, Inc. (A)		96		2,129
				36,791
Health Care Technology – 1.5%
Evolent Health, Inc., Class A (A)		116		2,844
Medidata Solutions, Inc. (A)		217		12,092
				14,936
Life Sciences Tools & Services – 1.1%
Cambrex Corp. (A)		232		10,306
Managed Health Care – 1.3%
HealthEquity, Inc. (A)		336		12,725
Total Health Care – 19.1%				186,003

COMMON STOCKS (Continued)	Shares		Value
Industrials
Aerospace & Defense – 0.8%
HEICO Corp.		110	$	7,605
Air Freight & Logistics – 0.9%
Hub Group, Inc. (A)		226		9,191
Building Products – 0.9%
Apogee Enterprises, Inc.		193		8,646
Diversified Support Services – 0.8%
Ritchie Bros. Auctioneers, Inc.		207		7,256
Trading Companies & Distributors – 4.1%
Beacon Roofing Supply, Inc. (A)		257		10,825
Watsco, Inc.		204		28,729
				39,554
Trucking – 1.1%
Covenant Transportation Group, Inc., Class A (A)		445		8,602
Knight Transportation, Inc.		85		2,430
				11,032
Total Industrials – 8.6%				83,284
Information Technology
Application Software – 12.9%
BroadSoft, Inc. (A)		73		3,412
Descartes Systems Group, Inc. (The)(A)(B)		505		10,863
HubSpot, Inc. (A)		179		10,320
Manhattan Associates, Inc. (A)		323		18,588
Paycom Software, Inc. (A)		411		20,588
Tyler Technologies, Inc. (A)		89		15,308
Ultimate Software Group, Inc. (The)(A)		167		34,062
Zendesk, Inc. (A)		388		11,906
				125,047
Communications Equipment – 1.0%
Lumentum Holdings, Inc. (A)		234		9,753
Data Processing & Outsourced Services – 2.5%
Echo Global Logisitics, Inc. (A)		247		5,700
Jack Henry & Associates, Inc.		213		18,221
				23,921
Electronic Manufacturing Services – 4.5%
Fabrinet (A)		344		15,321
MACOM Technology Solutions Holdings, Inc. (A)		314		13,282
Mercury Computer Systems, Inc. (A)		613		15,054
				43,657
Internet Software & Services – 1.4%
Five9, Inc. (A)		338		5,292
Shopify, Inc., Class A (A)		192		8,241
				13,533

2016 SEMIANNUAL REPORT 111

SCHEDULE OF INVESTMENTS IVY SMALL CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
IT Consulting & Other Services – 5.4%
Booz Allen Hamilton Holding Corp.		696	$	22,007
CACI International, Inc., Class A (A)		123		12,452
Science Applications International Corp.		265		18,411
				52,870
Semiconductor Equipment – 0.6%
MaxLinear, Inc., Class A (A)		281		5,700
Semiconductors – 2.5%
Monolithic Power Systems, Inc.		131		10,522
Power Integrations, Inc.		219		13,816
				24,338
Systems Software – 1.8%
Proofpoint, Inc. (A)		237		17,754
Total Information Technology – 32.6%				316,573
Materials
Construction Materials – 1.8%
Eagle Materials, Inc.		89		6,880
Summit Materials, Inc., Class A (A)		436		8,080

COMMON STOCKS (Continued)	Shares		Value
Construction Materials (Continued)
U.S. Concrete, Inc. (A)		60	$	2,755
				17,715
Total Materials – 1.8%				17,715
Real Estate
Real Estate Services – 1.9%
RE/MAX Holdings, Inc., Class A		412		18,024
Total Real Estate – 1.9%				18,024
TOTAL COMMON STOCKS – 93.3%			$	905,891
(Cost: $646,010)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 5.2%
Apple, Inc.,
0.440%, 10–4–16	$	3,000		3,000
DTE Energy Co. (GTD by Detroit Edison Co.),
0.610%, 10–6–16		12,500		12,498
John Deere Canada ULC (GTD by Deere & Co.):
0.510%, 10–5–16		7,000		7,000
0.450%, 11–7–16		5,000		4,997
Kroger Co. (The),
0.630%, 10–3–16		5,000		5,000

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (C) (Continued)
Northern Illinois Gas Co.:
0.420%, 10–3–16	$	5,227	$	5,227
0.760%, 10–11–16		5,000		4,999
Rockwell Automation, Inc.,
0.520%, 10–3–16		5,000		5,000
Virginia Electric and Power Co.,
0.720%, 11–2–16		3,000		2,998
				50,719
Master Note – 0.4%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (D)		4,191		4,191
TOTAL SHORT-TERM SECURITIES – 5.6%			$	54,910
(Cost: $54,911)
TOTAL INVESTMENT SECURITIES – 98.9%			$	960,801
(Cost: $700,921)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.1%				10,357
NET ASSETS – 100.0%			$	971,158

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, 2016.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following total return swap agreements were outstanding at September 30, 2016:

Counterparty	Number of Shares	Underlying Security	Termination Date		Notional Amount	Financing Fee(1)(2)		Unrealized Appreciation
JPMorgan Chase Bank N.A.	330,690	Biotech Custom Index		09/06/2017	$36,663		1M LIBOR less 50 bps	$	2,259

(1) The Fund pays the financing fee multiplied by the notional amount each month.

(2) At the termination date, a net cash flow is exchanged where the market-linked total return is equivalent to the return of the underlying security less a financing rate, if any. As the payer, a Fund would owe payments on any net positive total return, and would receive payments in the event of a negative total return.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	905,891	$	—	$	—
Short-Term Securities		—		54,910		—
Total	$	905,891	$	54,910	$	—
Total Return Swaps	$	—	$	2,259	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

GTD = Guaranteed

See Accompanying Notes to Financial Statements.

112 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY SMALL CAP VALUE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	95.5%
Industrials	21.1%
Consumer Staples	14.9%
Financials	11.8%
Materials	11.4%
Consumer Discretionary	8.7%
Real Estate	7.3%
Information Technology	6.4%
Utilities	6.4%
Energy	4.4%
Health Care	1.8%
Telecommunication Services	1.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	4.5%

Lipper Rankings

Category: Lipper Small-Cap Value Funds	Rank	Percentile
1 Year	13/293		5
3 Year	28/255		11
5 Year	63/231		28
10 Year	42/145		29

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
Webster Financial Corp.	Financials	Regional Banks
Take-Two Interactive Software, Inc.	Information Technology	Home Entertainment Software
Nu Skin Enterprises, Inc., Class A	Consumer Staples	Personal Products
Coca-Cola Bottling Co. Consolidated	Consumer Staples	Soft Drinks
Beacon Roofing Supply, Inc.	Industrials	Trading Companies & Distributors
Flotek Industries, Inc.	Materials	Specialty Chemicals
Laredo Petroleum Holdings, Inc.	Energy	Oil & Gas Exploration & Production
Woodward, Inc.	Industrials	Industrial Machinery
Pinnacle Foods, Inc.	Consumer Staples	Packaged Foods & Meats
Communications Sales & Leasing, Inc.	Real Estate	Specialized REITs

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 113

SCHEDULE OF INVESTMENTS IVY SMALL CAP VALUE FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Automotive Retail – 1.9%
Monro Muffler Brake, Inc.		104	$	6,335
Homebuilding – 1.9%
TRI Pointe Group, Inc. (A)		486		6,402
Homefurnishing Retail – 2.0%
Restoration Hardware Holdings, Inc. (A)		186		6,418
Movies & Entertainment – 2.0%
AMC Entertainment Holdings, Inc., Class A		212		6,597
Restaurants – 0.9%
Cheesecake Factory, Inc. (The)		56		2,818
Total Consumer Discretionary – 8.7%				28,570
Consumer Staples
Food Retail – 0.5%
Casey’s General Stores, Inc.		14		1,694
Packaged Foods & Meats – 3.3%
Pinnacle Foods, Inc.		214		10,742
Personal Products – 7.0%
Avon Products, Inc.		1,375		7,780
Nu Skin Enterprises, Inc., Class A		234		15,172
				22,952
Soft Drinks – 4.1%
Coca-Cola Bottling Co. Consolidated		91		13,497
Total Consumer Staples – 14.9%				48,885
Energy
Oil & Gas Exploration & Production – 4.4%
Clayton Williams Energy, Inc. (A)		34		2,888
Laredo Petroleum Holdings, Inc. (A)		896		11,559
				14,447
Total Energy – 4.4%				14,447
Financials
Regional Banks – 10.4%
FCB Financial Holdings, Inc., Class A (A)		141		5,407
SVB Financial Group (A)		48		5,339
Tompkins Financial Corp.		24		1,796
Webster Financial Corp.		430		16,325
Western Alliance Bancorp. (A)		140		5,263
				34,130
Reinsurance – 1.4%
Reinsurance Group of America, Inc.		43		4,685
Total Financials – 11.8%				38,815

COMMON STOCKS (Continued)	Shares		Value
Health Care
Health Care Services – 1.8%
Healthways, Inc. (A)		224	$	5,930
Total Health Care – 1.8%				5,930
Industrials
Aerospace & Defense – 1.8%
Orbital ATK, Inc.		80		6,098
Airlines – 1.5%
Copa Holdings S.A., Class A		55		4,836
Building Products – 2.2%
Continental Building Products, Inc. (A)		350		7,352
Commercial Printing – 2.1%
Deluxe Corp.		48		3,227
Multi-Color Corp.		56		3,670
				6,897
Industrial Machinery – 3.4%
Woodward, Inc.		177		11,040
Marine – 0.9%
Kirby Corp. (A)		49		3,034
Trading Companies & Distributors – 5.3%
Beacon Roofing Supply, Inc. (A)		299		12,596
Univar, Inc. (A)		219		4,785
				17,381
Trucking – 3.9%
Saia, Inc. (A)		84		2,501
YRC Worldwide, Inc. (A)		842		10,370
				12,871
Total Industrials – 21.1%				69,509
Information Technology
Home Entertainment Software – 4.7%
Take-Two Interactive Software, Inc. (A)		346		15,616
IT Consulting & Other Services – 1.7%
Science Applications International Corp.		80		5,522
Total Information Technology – 6.4%				21,138
Materials
Aluminum – 1.1%
Kaiser Aluminum Corp.		44		3,797
Gold – 2.3%
IAMGOLD Corp. (A)		634		2,568
Kinross Gold Corp. (A)		611		2,571
Yamana Gold, Inc.		566		2,439
				7,578

COMMON STOCKS (Continued)	Shares		Value
Precious Metals & Minerals – 0.5%
Silver Standard Resources, Inc. (A)		132	$	1,594
Specialty Chemicals – 7.5%
Flotek Industries, Inc. (A)(B)		118		1,711
Flotek Industries, Inc. (A)		811		11,796
Innospec, Inc.		74		4,506
Sensient Technologies Corp.		86		6,526
				24,539
Total Materials – 11.4%				37,508
Real Estate
Industrial REITs – 1.2%
STAG Industrial, Inc.		159		3,895
Office REITs – 1.6%
Highwoods Properties, Inc.		102		5,337
Specialized REITs – 4.5%
Communications Sales & Leasing, Inc.		335		10,525
Entertainment Properties Trust		54		4,213
				14,738
Total Real Estate – 7.3%				23,970
Telecommunication Services
Alternative Carriers – 1.3%
Vonage Holdings Corp. (A)		642		4,246
Total Telecommunication Services – 1.3%				4,246
Utilities
Electric Utilities – 3.0%
ALLETE, Inc.		90		5,336
IDACORP, Inc.		39		3,069
Portland General Electric Co.		30		1,290
				9,695
Gas Utilities – 1.8%
New Jersey Resources Corp.		94		3,099
South Jersey Industries, Inc.		101		2,975
				6,074
Multi-Utilities – 1.6%
MDU Resources Group, Inc.		68		1,730
NorthWestern Corp.		61		3,506
				5,236
Total Utilities – 6.4%				21,005
TOTAL COMMON STOCKS – 95.5%			$	314,023
(Cost: $263,401)

114 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY SMALL CAP VALUE FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (C) – 2.9%
Campbell Soup Co.,
0.590%, 10–3–16	$	1,917	$	1,917
J.M. Smucker Co. (The),
0.700%, 10–3–16		7,371		7,370
				9,287
Master Note – 0.8%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (D)		2,792		2,792
TOTAL SHORT-TERM SECURITIES – 3.7%			$	12,079
(Cost: $12,079)
TOTAL INVESTMENT SECURITIES – 99.2%			$	326,102
(Cost: $275,480)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.8%				2,469
NET ASSETS – 100.0%			$	328,571

Notes to Schedule of Investments

(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. At September 30, 2016 the total value of these securities amounted to $1,711 or 0.5% of net assets.

(C) Rate shown is the yield to maturity at September 30, 2016.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	314,023	$	—	$	—
Short-Term Securities		—		12,079		—
Total	$	314,023	$	12,079	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 115

PORTFOLIO HIGHLIGHTS IVY TAX-MANAGED EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	97.7%
Information Technology	34.6%
Health Care	19.5%
Consumer Discretionary	15.7%
Industrials	14.6%
Consumer Staples	7.3%
Energy	4.0%
Real Estate	2.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.3%

Lipper Rankings

Category: Lipper Large-Cap Growth Funds	Rank	Percentile
1 Year	619/694		90
3 Year	300/628		48
5 Year	361/549		66

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
Amazon.com, Inc.	Consumer Discretionary	Internet & Direct Marketing Retail
Alphabet, Inc., Class A	Information Technology	Internet Software & Services
salesforce.com, Inc.	Information Technology	Application Software
Facebook, Inc., Class A	Information Technology	Internet Software & Services
Shire Pharmaceuticals Group plc ADR	Health Care	Biotechnology
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
Allergan plc	Health Care	Pharmaceuticals
Adobe Systems, Inc.	Information Technology	Application Software
Lam Research Corp.	Information Technology	Semiconductor Equipment
Visa, Inc., Class A	Information Technology	Data Processing & Outsourced Services

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

116 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY TAX-MANAGED EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel, Accessories & Luxury Goods – 0.7%
lululemon athletica, Inc. (A)		14	$	855
Cable & Satellite – 4.1%
Charter Communications, Inc., Class A (A)		8		2,127
Comcast Corp., Class A		40		2,672
				4,799
Footwear – 1.0%
NIKE, Inc., Class B		22		1,175
Internet & Direct Marketing Retail – 7.8%
Amazon.com, Inc. (A)		8		6,679
priceline.com, Inc. (A)		2		2,580
				9,259
Restaurants – 2.1%
Panera Bread Co., Class A (A)		12		2,405
Total Consumer Discretionary – 15.7%				18,493
Consumer Staples
Brewers – 1.2%
Anheuser-Busch InBev S.A. ADR		11		1,428
Food Retail – 1.0%
Casey’s General Stores, Inc.		10		1,218
Hypermarkets & Super Centers – 0.8%
Costco Wholesale Corp.		6		892
Packaged Foods & Meats – 2.2%
Blue Buffalo Pet Products, Inc. (A)		57		1,355
Mead Johnson Nutrition Co.		15		1,206
				2,561
Personal Products – 1.1%
Estee Lauder Co., Inc. (The), Class A		15		1,340
Tobacco – 1.0%
Philip Morris International, Inc.		12		1,155
Total Consumer Staples – 7.3%				8,594
Energy
Oil & Gas Equipment & Services – 4.0%
Halliburton Co.		73		3,267
Schlumberger Ltd.		19		1,491
				4,758
Total Energy – 4.0%				4,758

COMMON STOCKS (Continued)	Shares		Value
Health Care
Biotechnology – 10.3%
ACADIA Pharmaceuticals, Inc. (A)		31	$	983
Alexion Pharmaceuticals, Inc. (A)		25		3,079
Biogen, Inc. (A)		4		1,364
Incyte Corp. (A)		13		1,253
Shire Pharmaceuticals Group plc ADR		23		4,446
Vertex Pharmaceuticals, Inc. (A)		13		1,105
				12,230
Health Care Equipment – 1.7%
DexCom, Inc. (A)		23		1,999
Health Care Facilities – 0.7%
HCA Holdings, Inc. (A)		12		875
Pharmaceuticals – 6.8%
Allergan plc (A)		18		4,145
Bristol-Myers Squibb Co.		26		1,411
Teva Pharmaceutical Industries Ltd. ADR		53		2,419
				7,975
Total Health Care – 19.5%				23,079
Industrials
Aerospace & Defense – 2.7%
Boeing Co. (The)		13		1,767
Raytheon Co.		11		1,470
				3,237
Industrial Conglomerates – 2.6%
Danaher Corp.		40		3,116
Railroads – 4.3%
Kansas City Southern		23		2,133
Union Pacific Corp.		30		2,891
				5,024
Research & Consulting Services – 2.5%
Verisk Analytics, Inc., Class A (A)		36		2,899
Trucking – 2.5%
J.B. Hunt Transport Services, Inc.		36		2,922
Total Industrials – 14.6%				17,198
Information Technology
Application Software – 7.3%
Adobe Systems, Inc. (A)		38		4,111
salesforce.com, Inc. (A)		63		4,503
				8,614

COMMON STOCKS (Continued)	Shares		Value
Data Processing & Outsourced Services – 8.3%
FleetCor Technologies, Inc. (A)		18	$	3,144
MasterCard, Inc., Class A		28		2,846
Visa, Inc., Class A		47		3,868
				9,858
Home Entertainment Software – 1.0%
Electronic Arts, Inc. (A)		14		1,196
Internet Software & Services – 8.8%
Alphabet, Inc., Class A (A)		6		4,697
Alphabet, Inc., Class C (A)		2		1,248
Facebook, Inc., Class A (A)		35		4,451
				10,396
Semiconductor Equipment – 3.3%
Lam Research Corp.		41		3,921
Systems Software – 2.3%
Microsoft Corp.		47		2,693
Technology Hardware, Storage & Peripherals – 3.6%
Apple, Inc.		38		4,277
Total Information Technology – 34.6%				40,955
Real Estate
Specialized REITs – 2.0%
American Tower Corp., Class A		21		2,351
Total Real Estate – 2.0%				2,351
TOTAL COMMON STOCKS – 97.7%			$	115,428
(Cost: $93,175)
SHORT-TERM SECURITIES	Principal
Master Note – 1.4%
Toyota Motor Credit Corp.,
0.600%, 10–5–16 (B)	$	1,690		1,690
TOTAL SHORT-TERM SECURITIES – 1.4%			$	1,690
(Cost: $1,690)
TOTAL INVESTMENT SECURITIES – 99.1%			$	117,118
(Cost: $94,865)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.9%				1,110
NET ASSETS – 100.0%			$	118,228

2016 SEMIANNUAL REPORT 117

SCHEDULE OF INVESTMENTS IVY TAX-MANAGED EQUITY FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

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, 2016. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	115,428	$	—	$	—
Short-Term Securities		—		1,690		—
Total	$	115,428	$	1,690	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

118 SEMIANNUAL REPORT 2016

PORTFOLIO HIGHLIGHTS IVY VALUE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)

Asset Allocation

Stocks	96.6%
Financials	28.2%
Health Care	13.5%
Information Technology	13.0%
Energy	12.9%
Consumer Discretionary	10.3%
Consumer Staples	8.0%
Utilities	3.1%
Materials	2.9%
Real Estate	2.6%
Industrials	2.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.4%

Lipper Rankings

Category: Lipper Large-Cap Value Funds	Rank	Percentile
1 Year	494/526		94
3 Year	346/450		77
5 Year	254/406		63
10 Year	115/286		41

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
JPMorgan Chase & Co.	Financials	Other Diversified Financial Services
Citigroup, Inc.	Financials	Other Diversified Financial Services
Microsoft Corp.	Information Technology	Systems Software
Capital One Financial Corp.	Financials	Consumer Finance
American International Group, Inc.	Financials	Multi-Line Insurance
Western Digital Corp.	Information Technology	Technology Hardware, Storage & Peripherals
Duke Energy Corp.	Utilities	Electric Utilities
Philip Morris International, Inc.	Consumer Staples	Tobacco
Micron Technology, Inc.	Information Technology	Semiconductors
Dow Chemical Co. (The)	Materials	Diversified Chemicals

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

+ Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments.

2016 SEMIANNUAL REPORT 119

SCHEDULE OF INVESTMENTS IVY VALUE FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Cable & Satellite – 2.6%
Comcast Corp., Class A		111	$	7,390
Casinos & Gaming – 2.7%
Las Vegas Sands, Inc. (A)		131		7,561
General Merchandise Stores – 2.6%
Target Corp.		109		7,493
Housewares & Specialties – 2.4%
Newell Rubbermaid, Inc.		128		6,730
Total Consumer Discretionary – 10.3%				29,174
Consumer Staples
Agricultural Products – 2.5%
Ingredion, Inc. (A)		54		7,159
Drug Retail – 2.4%
CVS Caremark Corp.		76		6,763
Tobacco – 3.1%
Philip Morris International, Inc.		89		8,662
Total Consumer Staples – 8.0%				22,584
Energy
Integrated Oil & Gas – 2.6%
Hess Corp.		136		7,266
Oil & Gas Refining & Marketing – 2.8%
Marathon Petroleum Corp. (A)		193		7,838
Oil & Gas Storage & Transportation – 7.5%
Energy Transfer Partners L.P.		188		6,971
Enterprise Products Partners L.P.		255		7,054
VTTI Energy Partners L.P.		387		7,358
				21,383
Total Energy – 12.9%				36,487
Financials
Consumer Finance – 6.3%
Capital One Financial Corp.		136		9,790
Synchrony Financial		286		8,005
				17,795
Life & Health Insurance – 2.8%
MetLife, Inc.		182		8,091
Mortgage REITs – 2.6%
American Capital Agency Corp.		378		7,392
Multi-Line Insurance – 3.3%
American International Group, Inc.		156		9,275
Other Diversified Financial Services – 8.6%
Citigroup, Inc. (A)		231		10,887
JPMorgan Chase & Co.		203		13,484
				24,371

COMMON STOCKS (Continued)	Shares		Value
Property & Casualty Insurance – 1.9%
Allstate Corp. (The)		77	$	5,313
Reinsurance – 2.7%
Reinsurance Group of America, Inc.		70		7,534
Total Financials – 28.2%				79,771
Health Care
Biotechnology – 2.5%
Amgen, Inc. (A)		42		6,973
Health Care Facilities – 2.7%
HCA Holdings, Inc. (B)		103		7,782
Managed Health Care – 6.1%
Aetna, Inc.		64		7,412
Anthem, Inc.		30		3,797
Cigna Corp.		31		4,027
Humana, Inc.		12		2,087
				17,323
Pharmaceuticals – 2.2%
Teva Pharmaceutical Industries Ltd. ADR		132		6,092
Total Health Care – 13.5%				38,170
Industrials
Airlines – 1.1%
Delta Air Lines, Inc.		82		3,220
Industrial Machinery – 1.0%
Eaton Corp.		42		2,753
Total Industrials – 2.1%				5,973
Information Technology
IT Consulting & Other Services – 0.7%
Computer Sciences Corp.		40		2,062
Semiconductor Equipment – 1.4%
Lam Research Corp.		41		3,874
Semiconductors – 4.1%
Micron Technology, Inc. (B)		471		8,366
QUALCOMM, Inc.		46		3,151
				11,517
Systems Software – 3.7%
Microsoft Corp.		184		10,604
Technology Hardware, Storage & Peripherals – 3.1%
Western Digital Corp. (A)		151		8,823
Total Information Technology – 13.0%				36,880

COMMON STOCKS (Continued)	Shares		Value
Materials
Diversified Chemicals – 2.9%
Dow Chemical Co. (The)		157	$	8,142
Total Materials – 2.9%				8,142
Real Estate
Specialized REITs – 2.6%
Communications Sales & Leasing, Inc.		237		7,454
Total Real Estate – 2.6%				7,454
Utilities
Electric Utilities – 3.1%
Duke Energy Corp.		109		8,700
Total Utilities – 3.1%				8,700
TOTAL COMMON STOCKS – 96.6%			$	273,335
(Cost: $240,079)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 2.3%
J.M. Smucker Co. (The),
0.700%, 10-3-16	$	6,655		6,654
Master Note – 1.2%
Toyota Motor Credit Corp.,
0.600%, 10-5-16 (D)		3,445		3,445
TOTAL SHORT-TERM SECURITIES – 3.5%			$	10,099
(Cost: $10,100)
TOTAL INVESTMENT SECURITIES – 100.1%			$	283,434
(Cost: $250,179)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)%				(400	)
NET ASSETS – 100.0%			$	283,034

120 SEMIANNUAL REPORT 2016

SCHEDULE OF INVESTMENTS IVY VALUE FUND (in thousands)

SEPTEMBER 30, 2016 (UNAUDITED)

Notes to Schedule of Investments

(A) All or a portion of securities with an aggregate value of $21,967 are held in collateralized accounts to cover potential obligations with respect to outstanding written options.

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

(C) Rate shown is the yield to maturity at September 30, 2016.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets.

The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Expiration Month		Exercise Price		Premium Received		Value
Aetna, Inc.	N/A	Put		62		November 2016	$	105.00	$	8	$	(10	)
Amgen, Inc.	N/A	Call		40		November 2016		180.00		11		(4	)
Eaton Corp.	N/A	Put		110		November 2016		57.50		9		(4	)
Enterprise Products Partners L.P.	N/A	Put		262		November 2016		25.00		13		(7	)
Ingredion, Inc.	N/A	Call		85		October 2016		140.00		14		(2	)
Las Vegas Sands, Inc.	N/A	Call		126		October 2016		58.50		14		(16	)
	N/A	Call		126		November 2016		60.00		16		(18	)
QUALCOMM, Inc.	N/A	Put		111		November 2016		57.50		10		(3	)
Wells Fargo & Co.	N/A	Put		313		December 2016		40.00		15		(19	)
Western Digital Corp.	N/A	Call		218		October 2016		65.00		14		(4	)
									$	124	$	(87	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	273,335	$	—	$	—
Short-Term Securities		—		10,099		—
Total	$	273,335	$	10,099	$	—
Liabilities
Written Options	$	81	$	6	$	—

During the period ended September 30, 2016, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

OTC = Over the Counter

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 121

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Bond Fund			Ivy Core Equity Fund		Ivy Cundill Global Value Fund			Ivy Dividend Opportunities Fund		Ivy Emerging Markets Equity Fund(1)			Ivy European Opportunities Fund			Ivy Global Bond Fund
ASSETS
Investments in unaffiliated securities at value+	$	810,959		$	1,041,368	$	199,683		$	372,360	$	592,487		$	202,514		$	167,430
Investments at Value		810,959			1,041,368		199,683			372,360		592,487			202,514			167,430
Cash		1,462			1		—			1		350			1			144
Cash denominated in foreign currencies at value+		—			—		—			—		23			320			—
Restricted cash		—			—		—			—		2,909			—			—
Investment securities sold receivable		7,770			32,467		788			1,484		2,010			3,045			—
Dividends and interest receivable		5,374			1,118		823			549		435			438			2,224
Capital shares sold receivable		906			550		44			363		1,650			417			125
Receivable from affiliates		5			398		3			10		296			—			257
Unrealized appreciation on forward foreign currency contracts		—			—		24			—		213			174			22
Variation margin receivable		101			—		—			—		—			—			—
Prepaid and other assets		70			75		47			54		71			47			41
Total Assets		826,647			1,075,977		201,412			374,821		600,444			206,956			170,243
LIABILITIES
Investment securities purchased payable		31,718			35,114		11			891		2,821			2,678			—
Capital shares redeemed payable		1,835			2,616		339			1,408		1,851			395			723
Distributions payable		159			—		—			—		—			—			—
Independent Trustees and Chief Compliance Officer fees payable		66			96		97			26		63			62			9
Overdraft due to custodian		—			—		1,107			—		—			—			—
Distribution and service fees payable		3			6		1			3		3			1			1
Shareholder servicing payable		174			238		85			94		187			72			59
Investment management fee payable		11			20		5			7		16			5			3
Accounting services fee payable		19			23		8			11		13			8			6
Unrealized depreciation on forward foreign currency contracts		—			—		79			—		362			—			—
Variation margin payable		97			—		—			—		—			—			—
Written options at value+		—			—		—			—		1,968			—			—
Other liabilities		63			33		24			17		53			17			11
Total Liabilities		34,145			38,146		1,756			2,457		7,337			3,238			812
Total Net Assets	$	792,502		$	1,037,831	$	199,656		$	372,364	$	593,107		$	203,718		$	169,431
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	788,316		$	871,164	$	213,337		$	294,786	$	577,173		$	322,444		$	189,395
Undistributed (distributions in excess of) net investment income		(794	)		1,224		1,214			718		(1,657	)		2,861			427
Accumulated net realized gain (loss)		(17,420	)		6,996		(31,606	)		10,653		(111,915	)		(133,907	)		(10,892	)
Net unrealized appreciation (depreciation)		22,400			158,447		16,711			66,207		129,506			12,320			(9,499	)
Total Net Assets	$	792,502		$	1,037,831	$	199,656		$	372,364	$	593,107		$	203,718		$	169,431
CAPITAL SHARES OUTSTANDING:
Class A		22,265			22,632		6,161			8,269		16,629			3,018			6,227
Class B		578			743		75			455		350			31			298
Class C		3,197			10,449		944			2,409		2,559			354			1,866
Class E		433			820		49			297		15			3			N/A
Class I		45,469			26,006		5,712			9,131		15,927			3,964			8,736
Class R		354			191		19			26		511			17			63
Class R6		172			7,472		62			113		529			44			283
Class Y		500			6,138		136			342		1,280			39			273
NET ASSET VALUE PER SHARE:
Class A		$10.86			$13.47		$15.08			$17.70		$15.65			$27.20			$9.55
Class B		$10.86			$11.43		$13.74			$17.40		$13.00			$25.01			$9.54
Class C		$10.86			$11.80		$14.17			$17.49		$13.58			$25.67			$9.55
Class E		$10.86			$13.41		$15.20			$17.64		$15.86			$27.42			N/A
Class I		$10.86			$14.89		$15.45			$17.76		$16.10			$27.49			$9.55
Class R		$10.86			$13.38		$15.06			$17.68		$15.56			$27.16			$9.53
Class R6		$10.86			$14.92		$15.50			$17.79		$16.17			$27.63			$9.55
Class Y		$10.86			$14.51		$15.31			$17.73		$15.94			$27.40			$9.55
+COST
Investments in unaffiliated securities at cost	$	788,655		$	882,921	$	182,796		$	306,153	$	462,860		$	190,358		$	176,967
Cash denominated in foreign currencies at cost		—			—		—			—		23			319			—
Written options premiums received at cost		—			—		—			—		2,010			—			—

(1)Consolidated Statement of Assets and Liabilities (See Note 6 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

122 SEMIANNUAL REPORT 2016

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Global Equity Income Fund			Ivy Global Growth Fund			Ivy Global Income Allocation Fund			Ivy High Income Fund			Ivy International Core Equity Fund			Ivy Large Cap Growth Fund			Ivy Limited- Term Bond Fund
ASSETS
Investments in unaffiliated securities at value+	$	359,129		$	482,263		$	735,890		$	4,631,873		$	4,501,727		$	1,737,796		$	1,842,173
Investments in affiliated securities at value+		—			—			—			15,277			—			—			—
Investments at Value		359,129			482,263			735,890			4,647,150			4,501,727			1,737,796			1,842,173
Cash		—	*		1			95			12,694			—			—	*		1
Cash denominated in foreign currencies at value+		—			1,650			—			48			37,068			—			—
Restricted cash		—			—			—			3,920			69			—			—
Investment securities sold receivable		859			2,993			610			18,351			56,444			—			7,037
Dividends and interest receivable		1,077			673			7,184			93,647			11,332			1,077			13,299
Capital shares sold receivable		712			640			1,079			11,562			9,804			1,034			4,635
Receivable from affiliates		127			—			4			5			9			213			1
Unrealized appreciation on forward foreign currency contracts		369			53			286			210			488			—			—
Prepaid and other assets		55			61			67			172			166			97			136
Total Assets		362,328			488,334			745,215			4,787,759			4,617,107			1,740,217			1,867,282
LIABILITIES
Investment securities purchased payable		9,447			4,007			4,068			30,061			70,026			—			5,247
Capital shares redeemed payable		672			916			1,253			14,159			11,039			3,381			4,645
Distributions payable		—			—			—			2,757			—			—			295
Independent Trustees and Chief Compliance Officer fees payable		4			76			41			191			97			116			74
Overdraft due to custodian		—			—			—			—			104			—			—
Distribution and service fees payable		1			2			3			42			15			8			8
Shareholder servicing payable		79			130			182			1,171			933			390			301
Investment management fee payable		7			11			14			69			97			32			22
Accounting services fee payable		9			12			16			23			23			23			23
Other liabilities		27			26			59			166			154			51			39
Total Liabilities		10,246			5,180			5,636			48,639			82,488			4,001			10,654
Total Net Assets	$	352,082		$	483,154		$	739,579		$	4,739,120		$	4,534,619		$	1,736,216		$	1,856,628
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	355,079		$	430,151		$	799,717		$	5,709,668		$	4,536,596		$	1,175,196		$	1,847,915
Undistributed (distributions in excess of) net investment income		751			(743	)		2,569			(1,275	)		68,893			105			(515	)
Accumulated net realized gain (loss)		(20,496	)		(15,004	)		(51,120	)		(574,732	)		(186,162	)		57,345			(15,361	)
Net unrealized appreciation (depreciation)		16,748			68,750			(11,587	)		(394,541	)		115,292			503,570			24,589
Total Net Assets	$	352,082		$	483,154		$	739,579		$	4,739,120		$	4,534,619		$	1,736,216		$	1,856,628
CAPITAL SHARES OUTSTANDING:
Class A		6,352			2,989			15,579			192,522			44,656			26,910			61,604
Class B		159			59			279			11,246			625			719			1,158
Class C		1,052			705			3,673			137,723			15,792			6,685			10,012
Class E		N/A			3			187			1,231			320			643			467
Class I		21,005			7,521			31,156			230,005			159,552			48,911			86,383
Class R		31			62			19			9,272			2,640			1,227			58
Class R6		101			205			123			6,038			21,886			17			7,813
Class Y		350			371			102			54,021			23,103			6,373			1,910
NET ASSET VALUE PER SHARE:
Class A		$12.11			$40.45			$14.41			$7.38			$16.90			$18.74			$10.96
Class B		$12.11			$34.93			$14.14			$7.38			$14.99			$15.02			$10.96
Class C		$12.11			$35.19			$14.24			$7.38			$15.05			$16.06			$10.96
Class E		N/A			$40.66			$14.41			$7.38			$17.00			$18.72			$10.96
Class I		$12.12			$41.12			$14.53			$7.38			$17.02			$19.56			$10.96
Class R		$12.12			$40.25			$14.40			$7.38			$16.87			$18.18			$10.96
Class R6		$12.13			$41.26			$14.54			$7.38			$17.08			$19.64			$10.96
Class Y		$12.11			$40.61			$14.47			$7.38			$17.01			$19.16			$10.96
+COST
Investments in unaffiliated securities at cost	$	342,757		$	413,535		$	747,735		$	5,011,708		$	4,386,956		$	1,234,226		$	1,817,584
Investments in affiliated securities at cost		—			—			—			30,173			—			—			—
Cash denominated in foreign currencies at cost		—			1,650			—			48			36,967			—			—

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 123

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Managed International Opportunities Fund			Ivy Micro Cap Growth Fund			Ivy Mid Cap Growth Fund			Ivy Mid Cap Income Opportunities Fund			Ivy Money Market Fund		Ivy Municipal Bond Fund			Ivy Municipal High Income Fund
ASSETS
Investments in unaffiliated securities at value+	$	301		$	173,254		$	2,682,065		$	211,246		$	194,842	$	238,179		$	1,333,310
Investments in affiliated securities at value+		193,803			—			—			—			—		—			4,605
Investments at Value		194,104			173,254			2,682,065			211,246			194,842		238,179			1,337,915
Cash		1			1			6			1			180		1			8,757
Restricted cash		—			—			—			—			—		124			998
Investment securities sold receivable		1,120			2,427			25,746			1,041			—		—			10
Dividends and interest receivable		—	*		22			1,354			275			108		2,400			21,995
Capital shares sold receivable		121			120			2,981			963			823		322			1,610
Receivable from affiliates		1			—			199			96			283		—	*		7
Variation margin receivable		—			—			—			—			—		44			355
Prepaid and other assets		38			37			118			64			40		43			75
Total Assets		195,385			175,861			2,712,469			213,686			196,276		241,113			1,371,722
LIABILITIES
Investment securities purchased payable		1,120			3,632			1,625			1,728			—		1,096			7,588
Capital shares redeemed payable		305			445			11,132			367			2,563		344			2,827
Distributions payable		—			—			—			—			1		41			429
Independent Trustees and Chief Compliance Officer fees payable		12			4			106			1			23		12			31
Distribution and service fees payable		1			1			14			1			1		1			9
Shareholder servicing payable		19			60			860			38			40		36			182
Investment management fee payable		—	*		4			61			5			2		3			18
Accounting services fee payable		4			6			17			7			6		8			22
Written options at value+		—			—			15,435			—			—		—			—
Other liabilities		6			15			124			11			15		11			22
Total Liabilities		1,467			4,167			29,374			2,158			2,651		1,552			11,128
Total Net Assets	$	193,918		$	171,694		$	2,683,095		$	211,528		$	193,625	$	239,561		$	1,360,594
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	194,383		$	137,472		$	2,232,583		$	196,020		$	193,624	$	227,099		$	1,308,818
Undistributed (distributions in excess of) net investment income		187			(1,466	)		(13,499	)		662			—		171			3,605
Accumulated net realized gain (loss)		(34,963	)		1,629			81,696			(6,585	)		1		(3,178	)		(12,672	)
Net unrealized appreciation		34,311			34,059			382,315			21,431			—		15,469			60,843
Total Net Assets	$	193,918		$	171,694		$	2,683,095		$	211,528		$	193,625	$	239,561		$	1,360,594
CAPITAL SHARES OUTSTANDING:
Class A		7,499			3,668			26,106			7,204			146,334		7,454			59,549
Class B		127			73			1,090			N/A			4,506		202			2,485
Class C		467			337			13,412			882			36,033		2,518			42,712
Class E		44			N/A			384			202			6,752		N/A			N/A
Class I		11,130			2,987			63,265			8,280			N/A		9,366			145,586
Class R		58			25			3,090			202			N/A		N/A			N/A
Class R6		N/A			79			3,972			290			N/A		N/A			N/A
Class Y		64			45			17,751			947			N/A		71			3,263
NET ASSET VALUE PER SHARE:
Class A		$9.98			$23.62			$20.30			$11.74			$1.00		$12.22			$5.37
Class B		$9.73			$22.28			$16.81			N/A			$1.00		$12.22			$5.37
Class C		$9.76			$22.63			$17.80			$11.71			$1.00		$12.22			$5.37
Class E		$9.99			N/A			$19.85			$11.75			$1.00		N/A			N/A
Class I		$10.03			$24.17			$21.60			$11.76			N/A		$12.22			$5.37
Class R		$9.94			$23.52			$19.94			$11.72			N/A		N/A			N/A
Class R6		N/A			$24.30			$21.70			$11.76			N/A		N/A			N/A
Class Y		$9.98			$24.40			$21.09			$11.74			N/A		$12.22			$5.37
+COST
Investments in unaffiliated securities at cost	$	301		$	139,195		$	2,297,459		$	189,815		$	194,842	$	222,787		$	1,273,655
Investments in affiliated securities at cost		159,492			—			—			—			—		—			4,054
Written options premiums received at cost		—			—			13,144			—			—		—			—

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

124 SEMIANNUAL REPORT 2016

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Small Cap Growth Fund			Ivy Small Cap Value Fund		Ivy Tax- Managed Equity Fund			Ivy Value Fund
ASSETS
Investments in unaffiliated securities at value+	$	960,801		$	326,102	$	117,118		$	283,434
Investments at Value		960,801			326,102		117,118			283,434
Cash		—	*		1		—	*		—	*
Investment securities sold receivable		14,733			2,963		1,825			346
Dividends and interest receivable		57			360		61			510
Capital shares sold receivable		717			2,479		61			198
Receivable from affiliates		9			—		—	*		—
Unrealized appreciation on swap agreements		2,259			—		—			—
Prepaid and other assets		73			55		32			52
Total Assets		978,649			331,960		119,097			284,540
LIABILITIES
Investment securities purchased payable		3,489			2,884		359			486
Capital shares redeemed payable		3,531			339		472			790
Independent Trustees and Chief Compliance Officer fees payable		157			29		2			18
Distribution and service fees payable		8			2		1			1
Shareholder servicing payable		226			98		22			89
Investment management fee payable		23			7		2			5
Accounting services fee payable		20			9		5			9
Written options at value+		—			—		—			87
Other liabilities		37			21		6			21
Total Liabilities		7,491			3,389		869			1,506
Total Net Assets	$	971,158		$	328,571	$	118,228		$	283,034
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	664,526		$	264,285	$	98,542		$	253,022
Undistributed (distributions in excess of) net investment income		(12,474	)		23		(311	)		875
Accumulated net realized gain (loss)		56,963			13,641		(2,256	)		(4,155	)
Net unrealized appreciation		262,143			50,622		22,253			33,292
Total Net Assets	$	971,158		$	328,571	$	118,228		$	283,034
CAPITAL SHARES OUTSTANDING:
Class A		13,907			9,446		2,038			5,072
Class B		612			213		80			148
Class C		11,940			1,272		292			866
Class E		412			10		N/A			7
Class I		12,324			7,105		3,608			7,056
Class R		2,711			230		N/A			15
Class R6		2,284			261		N/A			313
Class Y		11,223			671		28			152
NET ASSET VALUE PER SHARE:
Class A		$16.37			$16.77		$19.50			$20.78
Class B		$12.74			$13.83		$18.75			$19.39
Class C		$13.77			$14.69		$18.69			$20.12
Class E		$16.25			$17.37		N/A			$20.86
Class I		$20.57			$18.02		$19.68			$20.86
Class R		$16.16			$16.69		N/A			$20.77
Class R6		$20.65			$18.15		N/A			$20.91
Class Y		$19.60			$17.54		$19.52			$20.83
+COST
Investments in unaffiliated securities at cost	$	700,921		$	275,480	$	94,865		$	250,179
Written options premiums received at cost		—			—		—			124

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 125

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands)	Ivy Bond Fund			Ivy Core Equity Fund			Ivy Cundill Global Value Fund			Ivy Dividend Opportunities Fund			Ivy Emerging Markets Equity Fund(1)			Ivy European Opportunities Fund			Ivy Global Bond Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	241		$	7,397		$	2,694		$	4,548		$	5,081		$	4,879		$	416
Foreign dividend withholding tax		—			(154	)		(195	)		(60	)		(555	)		(387	)		(7	)
Interest and amortization from unaffiliated securities		12,543			34			154			107			53			4			3,741
Foreign interest withholding tax		—			—			—			—			(1	)		—			—
Total Investment Income		12,784			7,277			2,653			4,595			4,578			4,496			4,150
EXPENSES
Investment management fee		2,026			3,804			1,034			1,305			2,715			958			551
Distribution and service fees:
Class A		582			533			173			266			376			151			118
Class B		32			45			5			41			22			4			15
Class C		174			636			70			219			166			50			95
Class E		5			13			1			7			—	*		—	*		N/A
Class R		10			6			1			1			16			1			1
Class Y		6			124			3			8			20			2			3
Shareholder servicing:
Class A		479			431			290			232			508			237			146
Class B		15			17			6			10			15			3			6
Class C		31			106			16			28			46			13			17
Class E		9			22			3			14			—	*		—	*		N/A
Class I		215			232			46			80			152			63			49
Class R		5			3			—	*		1			8			1			1
Class R6		—	*		7			—	*		—	*		1			—	*		—	*
Class Y		3			76			2			5			14			1			2
Registration fees		69			66			49			54			64			50			46
Custodian fees		16			12			24			6			58			17			6
Independent Trustees and Chief Compliance Officer fees		13			19			3			6			8			3			3
Accounting services fee		111			138			48			69			78			48			37
Professional fees		38			24			24			17			36			24			32
Other		31			42			19			19			70			20			13
Total Expenses		3,870			6,356			1,817			2,388			4,373			1,646			1,141
Less:
Expenses in excess of limit		(4	)		(398	)		(168	)		(10	)		(268	)		—			(257	)
Total Net Expenses		3,866			5,958			1,649			2,378			4,105			1,646			884
Net Investment Income		8,918			1,319			1,004			2,217			473			2,850			3,266
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		10,798			7,738			(15,558	)		8,126			549			(1,554	)		(1,941	)
Futures contracts		(637	)		—			—			—			—			—			—
Written options		—			—			—			—			2,518			—			—
Forward foreign currency contracts		—			—			(2,174	)		—			(274	)		1,896			211
Foreign currency exchange transactions		—			—			(4	)		3			(1,703	)		(1	)		25
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		14,286			53,013			25,662			7,130			78,042			3,842			7,339
Futures contracts		(5	)		—			—			—			—			—			—
Written options		—			—			—			—			(1,448	)		—			—
Forward foreign currency contracts		—			—			1,616			—			(546	)		147			6
Foreign currency exchange transactions		—			—			(24	)		—			892			(3	)		9
Net Realized and Unrealized Gain		24,442			60,751			9,518			15,259			78,030			4,327			5,649
Net Increase in Net Assets Resulting from Operations	$	33,360		$	62,070		$	10,522		$	17,476		$	78,503		$	7,177		$	8,915

* Not shown due to rounding.

(1) Consolidated Statement of Operations (See Note 6 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

126 SEMIANNUAL REPORT 2016

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands)	Ivy Global Equity Income Fund			Ivy Global Growth Fund			Ivy Global Income Allocation Fund			Ivy High Income Fund			Ivy International Core Equity Fund			Ivy Large Cap Growth Fund			Ivy Limited- Term Bond Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	9,903		$	3,470		$	12,999		$	1,582		$	86,572		$	9,783		$	—
Foreign dividend withholding tax		(622	)		(216	)		(638	)		—			(7,131	)		(33	)		—
Interest and amortization from unaffiliated securities		11			73			11,042			208,921			302			60			22,877
Foreign interest withholding tax		—			—	*		—			—			(4	)		—			—
Total Investment Income		9,292			3,327			23,403			210,503			79,739			9,810			22,877
EXPENSES
Investment management fee		1,131			2,089			2,607			12,694			18,088			5,931			3,986
Distribution and service fees:
Class A		205			285			520			2,061			1,401			1,045			1,390
Class B		10			12			21			421			47			55			67
Class C		67			123			262			5,163			1,234			543			599
Class E		N/A			—	*		4			11			7			15			6
Class R		1			6			1			166			101			56			2
Class Y		6			19			2			513			685			154			23
Shareholder servicing:
Class A		262			385			542			1,433			1,325			880			849
Class B		2			9			8			67			19			20			15
Class C		9			33			33			605			197			80			82
Class E		N/A			—	*		8			21			17			23			6
Class I		119			168			224			1,263			1,820			527			419
Class R		1			3			—	*		84			52			28			1
Class R6		—	*		—	*		—	*		2			18			—	*		3
Class Y		3			12			2			320			459			94			15
Registration fees		52			55			65			112			105			78			146
Custodian fees		19			30			22			17			208			14			15
Independent Trustees and Chief Compliance Officer fees		5			8			11			80			79			28			29
Accounting services fee		53			73			97			138			138			138			138
Professional fees		20			28			31			109			71			32			36
Other		22			30			59			224			144			65			50
Total Expenses		1,987			3,368			4,519			25,504			26,215			9,806			7,877
Less:
Expenses in excess of limit		(127	)		—			(4	)		(5	)		(9	)		(213	)		(1	)
Total Net Expenses		1,860			3,368			4,515			25,499			26,206			9,593			7,876
Net Investment Income (Loss)		7,432			(41	)		18,888			185,004			53,533			217			15,001
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		(3,975	)		(9,326	)		7,563			(62,369	)		(43,666	)		81,331			7,503
Written options		—			—			483			—			(174	)		—			—
Swap agreements		—			—			—			1,269			—			—			—
Forward foreign currency contracts		2,501			(330	)		2,626			145			32,258			—			—
Foreign currency exchange transactions		(63	)		(70	)		14			16			765			—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		7,126			24,676			11,203			378,015			218,904			22,516			8,203
Investments in affiliated securities		—			—			—			(1,610	)		—			—			—
Written options		—			—			(337	)		—			126			—			—
Swap agreements		—			—			—			(107	)		—			—			—
Forward foreign currency contracts		448			53			374			282			2,364			—			—
Foreign currency exchange transactions		(22	)		8			(16	)		(43	)		(153	)		—			—
Net Realized and Unrealized Gain		6,015			15,011			21,910			315,598			210,424			103,847			15,706
Net Increase in Net Assets Resulting from Operations	$	13,447		$	14,970		$	40,798		$	500,602		$	263,957		$	104,064		$	30,707

* Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 127

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands)	Ivy Managed International Opportunities Fund			Ivy Micro Cap Growth Fund			Ivy Mid Cap Growth Fund			Ivy Mid Cap Income Opportunities Fund			Ivy Money Market Fund			Ivy Municipal Bond Fund			Ivy Municipal High Income Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	—		$	356		$	15,623		$	2,588		$	—		$	73		$	—
Dividends from affiliated securities		738			—			—			—			—			—			—
Interest and amortization from unaffiliated securities		1			23			43			17			581			3,661			34,407
Interest and amortization from affiliated securities		—			—			—			—			—			—			166
Total Investment Income		739			379			15,666			2,605			581			3,734			34,573
EXPENSES
Investment management fee		49			771			12,015			717			340			624			3,306
Distribution and service fees:
Class A		161			135			826			117			—			174			444
Class B		7			8			93			N/A			26			13			68
Class C		23			35			1,266			37			192			157			1,192
Class E		—	*		N/A			10			3			—			N/A			N/A
Class R		1			1			166			6			N/A			N/A			N/A
Class Y		1			1			521			7			N/A			1			24
Shareholder servicing:
Class A		57			203			841			94			113			73			146
Class B		2			4			21			N/A			7			1			6
Class C		3			13			225			6			23			15			68
Class E		—	*		N/A			20			—	*		7			N/A			N/A
Class I		3			42			1,280			46			N/A			49			574
Class R		—	*		1			87			3			N/A			N/A			N/A
Class R6		N/A			—	*		4			—	*		N/A			N/A			N/A
Class Y		—	*		1			327			5			N/A			1			15
Registration fees		43			45			84			46			48			47			64
Custodian fees		4			5			30			5			10			6			12
Independent Trustees and Chief Compliance Officer fees		3			3			45			3			4			4			24
Accounting services fee		24			36			131			38			38			47			132
Professional fees		12			14			44			17			22			18			43
Other		8			15			159			9			14			10			30
Total Expenses		401			1,333			18,195			1,159			844			1,240			6,148
Less:
Expenses in excess of limit		(1	)		—			(199	)		(76	)		(283	)		—	*		(7	)
Total Net Expenses		400			1,333			17,996			1,083			561			1,240			6,141
Net Investment Income (Loss)		339			(954	)		(2,330	)		1,522			20			2,494			28,432
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		—			11,197			108,544			(2,145	)		9			19			2,695
Investments in affiliated securities		5,625			—			—			—			—			—			—
Futures contracts		—			—			—			—			—			(48	)		(400	)
Written options		—			—			(199	)		—			—			—			—
Foreign currency exchange transactions		—			—			9			—			—			—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		—			32,517			98,107			12,079			—			1,609			18,440
Investments in affiliated securities		4,521			—			—			—			—			—			(12	)
Futures contracts		—			—			—			—			—			77			637
Written options		—			—			(2,107	)		—			—			—			—
Net Realized and Unrealized Gain		10,146			43,714			204,354			9,934			9			1,657			21,360
Net Increase in Net Assets Resulting from Operations	$	10,485		$	42,760		$	202,024		$	11,456		$	29		$	4,151		$	49,792

* Not shown due to rounding.

See Accompanying Notes to Financial Statements.

128 SEMIANNUAL REPORT 2016

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)

(In thousands)	Ivy Small Cap Growth Fund			Ivy Small Cap Value Fund			Ivy Tax- Managed Equity Fund			Ivy Value Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	2,883		$	2,104		$	442		$	3,745
Foreign dividend withholding tax		(10	)		—	*		(9	)		(15	)
Interest and amortization from unaffiliated securities		116			27			17			45
Total Investment Income		2,989			2,131			450			3,775
EXPENSES
Investment management fee		4,098			1,208			390			986
Distribution and service fees:
Class A		347			219			90			218
Class B		39			13			7			15
Class C		837			81			28			90
Class E		8			—	*		N/A			—	*
Class R		108			8			N/A			1
Class Y		265			11			1			2
Shareholder servicing:
Class A		357			280			51			239
Class B		12			6			1			8
Class C		136			21			4			15
Class E		18			—	*		N/A			—	*
Class I		176			62			33			69
Class R		56			4			N/A			—	*
Class R6		2			—	*		N/A			—	*
Class Y		167			7			—	*		2
Registration fees		63			52			36			51
Custodian fees		12			12			4			7
Independent Trustees and Chief Compliance Officer fees		16			4			2			5
Accounting services fee		120			52			33			49
Professional fees		28			21			13			22
Other		48			18			6			58
Total Expenses		6,913			2,079			699			1,837
Less:
Expenses in excess of limit		(9	)		—			—	*		—
Total Net Expenses		6,904			2,079			699			1,837
Net Investment Income (Loss)		(3,915	)		52			(249	)		1,938
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		42,944			19,590			(1,741	)		948
Written options		—			—			—			627
Swap agreements		2,998			—			—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		51,412			23,516			7,085			13,998
Written options		—			—			—			557
Swap agreements		3,125			—			—			—
Net Realized and Unrealized Gain		100,479			43,106			5,344			16,130
Net Increase in Net Assets Resulting from Operations	$	96,564		$	43,158		$	5,095		$	18,068

* Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 129

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Bond Fund						Ivy Core Equity Fund						Ivy Cundill Global Value Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	8,918		$	17,162		$	1,319		$	1,834		$	1,004		$	2,178
Net realized gain (loss) on investments		10,161			(7,139	)		7,738			51,498			(17,736	)		(2,886	)
Net change in unrealized appreciation (depreciation)		14,281			(8,352	)		53,013			(105,917	)		27,254			(33,823	)
Net Increase (Decrease) in Net Assets Resulting from Operations		33,360			1,671			62,070			(52,585	)		10,522			(34,531	)
Distributions to Shareholders From:
Net investment income:
Class A		(5,626	)		(17,219	)		—			(163	)		—			(1,796	)
Class B		(46	)		(87	)		—			—			—			—
Class C		(294	)		(460	)		—			—			—			(46	)
Class E		(53	)		(89	)		—			—			—			(7	)
Class I		(3,568	)		(243	)		—			(255	)		—			(88	)
Class R		(41	)		(19	)		—			—			—			(2	)
Class R6		(27	)		(44	)		—			(68	)		—			(19	)
Class Y		(57	)		(68	)		—			(141	)		—			(34	)
Net realized gains:
Class A		—			—			—			(39,800	)		—			—
Class B		—			—			—			(718	)		—			—
Class C		—			—			—			(10,219	)		—			—
Class E		—			—			—			(698	)		—			—
Class I		—			—			—			(13,556	)		—			—
Class R		—			—			—			(179	)		—			—
Class R6		—			—			—			(2,897	)		—			—
Class Y		—			—			—			(7,899	)		—			—
Total Distributions to Shareholders		(9,712	)		(18,229	)		—			(76,593	)		—			(1,992	)
Capital Share Transactions		(886	)		42,640			(154,121	)		121,596			(26,790	)		(66,063	)
Net Increase (Decrease) in Net Assets		22,762			26,082			(92,051	)		(7,582	)		(16,268	)		(102,586	)
Net Assets, Beginning of Period		769,740			743,658			1,129,882			1,137,464			215,924			318,510
Net Assets, End of Period	$	792,502		$	769,740		$	1,037,831		$	1,129,882		$	199,656		$	215,924
Undistributed (distributions in excess of) net investment income	$	(794	)	$	—		$	1,224		$	(95	)	$	1,214		$	214

See Accompanying Notes to Financial Statements.

130 SEMIANNUAL REPORT 2016

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Dividend Opportunities Fund						Ivy Emerging Markets Equity Fund(1)						Ivy European Opportunities Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	2,217		$	3,323		$	473		$	234		$	2,850		$	1,072
Net realized gain (loss) on investments		8,129			13,648			1,090			(52,654	)		341			(13,816	)
Net change in unrealized appreciation (depreciation)		7,130			(36,288	)		76,940			(52,284	)		3,986			(12,125	)
Net Increase (Decrease) in Net Assets Resulting from Operations		17,476			(19,317	)		78,503			(104,704	)		7,177			(24,869	)
Distributions to Shareholders From:
Net investment income:
Class A		(1,562	)		(2,130	)		—			(3,403	)		—			(610	)
Class B		(12	)		(4	)		—			(28	)		—			—
Class C		(91	)		(53	)		—			(209	)		—			—
Class E		(37	)		(36	)		—			(2	)		—			—	*
Class I		(732	)		(214	)		—			(1,158	)		—			(316	)
Class R		(2	)		(2	)		—			(26	)		—			(1	)
Class R6		(20	)		(5	)		—			(65	)		—			(15	)
Class Y		(49	)		(64	)		—			(92	)		—			(6	)
Net realized gains:
Class A		—			(23,525	)		—			—			—			—
Class B		—			(789	)		—			—			—			—
Class C		—			(3,849	)		—			—			—			—
Class E		—			(423	)		—			—			—			—
Class I		—			(1,839	)		—			—			—			—
Class R		—			(28	)		—			—			—			—
Class R6		—			(41	)		—			—			—			—
Class Y		—			(630	)		—			—			—			—
Total Distributions to Shareholders		(2,505	)		(33,632	)		—			(4,983	)		—			(948	)
Capital Share Transactions		(4,691	)		(11,066	)		(19,298	)		31,640			(27,368	)		57,146
Net Increase (Decrease) in Net Assets		10,280			(64,015	)		59,205			(78,047	)		(20,191	)		31,329
Net Assets, Beginning of Period		362,084			426,099			533,902			611,949			223,909			192,580
Net Assets, End of Period	$	372,364		$	362,084		$	593,107		$	533,902		$	203,718		$	223,909
Undistributed (distributions in excess of) net investment income	$	718		$	1,003		$	(1,657	)	$	(427	)	$	2,861		$	12

(1) Consolidated Statements of Changes in Net Assets (See Note 6 in Notes to Financial Statements)

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 131

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Global Bond Fund						Ivy Global Equity Income Fund						Ivy Global Growth Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	3,266		$	7,981		$	7,432		$	9,311		$	(41	)	$	(1,034	)
Net realized loss on investments		(1,705	)		(8,859	)		(1,537	)		(17,773	)		(9,726	)		(734	)
Net change in unrealized appreciation (depreciation)		7,354			(3,817	)		7,552			(7,615	)		24,737			(30,570	)
Net Increase (Decrease) in Net Assets Resulting from Operations		8,915			(4,695	)		13,447			(16,077	)		14,970			(32,338	)
Distributions to Shareholders From:
Net investment income:
Class A		(920	)		(4,424	)		(4,236	)		(7,745	)		—			(376	)
Class B		(17	)		(77	)		(37	)		(46	)		—			—
Class C		(109	)		(547	)		(253	)		(345	)		—			—
Class E		N/A			N/A			N/A			N/A			—			—	*
Class I		(578	)		(1,248	)		(2,884	)		(721	)		—			(174	)
Class R		(4	)		(12	)		(8	)		(8	)		—			—
Class R6		(22	)		(11	)		(28	)		(43	)		—			(6	)
Class Y		(24	)		(104	)		(99	)		(146	)		—			(17	)
Net realized gains:
Class A		—			—			—			(7,224	)		—			(8,348	)
Class B		—			—			—			(54	)		—			(68	)
Class C		—			—			—			(411	)		—			(601	)
Class E		N/A			N/A			N/A			N/A			—			(3	)
Class I		—			—			—			(585	)		—			(1,780	)
Class R		—			—			—			(8	)		—			(41	)
Class R6		—			—			—			(28	)		—			(54	)
Class Y		—			—			—			(128	)		—			(272	)
Total Distributions to Shareholders		(1,674	)		(6,423	)		(7,545	)		(17,492	)		—			(11,740	)
Capital Share Transactions		(19,715	)		(77,614	)		57,247			26,795			(35,126	)		16,321
Net Increase (Decrease) in Net Assets		(12,474	)		(88,732	)		63,149			(6,774	)		(20,156	)		(27,757	)
Net Assets, Beginning of Period		181,905			270,637			288,933			295,707			503,310			531,067
Net Assets, End of Period	$	169,431		$	181,905		$	352,082		$	288,933		$	483,154		$	503,310
Undistributed (distributions in excess of) net investment income	$	427		$	662		$	751		$	927		$	(743	)	$	(632	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

132 SEMIANNUAL REPORT 2016

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Global Income Allocation Fund						Ivy High Income Fund						Ivy International Core Equity Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	18,888		$	31,121		$	185,004		$	494,504		$	53,533		$	52,051
Net realized gain (loss) on investments		10,686			(51,907	)		(60,939	)		(500,136	)		(10,817	)		(128,459	)
Net change in unrealized appreciation (depreciation)		11,224			(27,493	)		376,537			(544,938	)		221,241			(381,168	)
Net Increase (Decrease) in Net Assets Resulting from Operations		40,798			(48,279	)		500,602			(550,570	)		263,957			(457,576	)
Distributions to Shareholders From:
Net investment income:
Class A		(10,406	)		(26,075	)		(64,689	)		(188,245	)		—			(12,752	)
Class B		(80	)		(151	)		(2,983	)		(7,499	)		—			(16	)
Class C		(1,054	)		(1,918	)		(36,846	)		(92,678	)		—			(757	)
Class E		(61	)		(108	)		(331	)		(667	)		—			(34	)
Class I		(5,615	)		(2,715	)		(60,798	)		(149,446	)		—			(21,428	)
Class R		(6	)		(10	)		(2,482	)		(4,527	)		—			(176	)
Class R6		(44	)		(80	)		(1,959	)		(2,547	)		—			(2,546	)
Class Y		(40	)		(87	)		(16,187	)		(42,233	)		—			(4,810	)
Net realized gains:
Class A		—			—			—			—			—			—
Class B		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Class E		—			—			—			—			—			—
Class I		—			—			—			—			—			—
Class R		—			—			—			—			—			—
Class R6		—			—			—			—			—			—
Class Y		—			—			—			—			—			—
Total Distributions to Shareholders		(17,306	)		(31,144	)		(186,275	)		(487,842	)		—			(42,519	)
Capital Share Transactions		(31,737	)		62,853			(346,427	)		(2,205,352	)		(311,096	)		1,599,773
Net Increase (Decrease) in Net Assets		(8,245	)		(16,570	)		(32,100	)		(3,243,764	)		(47,139	)		1,099,678
Net Assets, Beginning of Period		747,824			764,394			4,771,220			8,014,984			4,581,758			3,482,080
Net Assets, End of Period	$	739,579		$	747,824		$	4,739,120		$	4,771,220		$	4,534,619		$	4,581,758
Undistributed (distributions in excess of) net investment income	$	2,569		$	2,690		$	(1,275	)	$	(7	)	$	68,893		$	14,595

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 133

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Large Cap Growth Fund						Ivy Limited-Term Bond Fund						Ivy Managed International Opportunities Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	217		$	(2,533	)	$	15,001		$	22,469		$	339		$	1,495
Net realized gain (loss) on investments		81,331			78,209			7,503			(982	)		5,625			18,643
Net change in unrealized appreciation (depreciation)		22,516			(113,833	)		8,203			(5,603	)		4,521			(41,815	)
Net Increase (Decrease) in Net Assets Resulting from Operations		104,064			(38,157	)		30,707			15,884			10,485			(21,677	)
Distributions to Shareholders From:
Net investment income:
Class A		—			—			(9,293	)		(21,276	)		—			(1,447	)
Class B		—			—			(56	)		(73	)		—			(1	)
Class C		—			—			(552	)		(817	)		—			(7	)
Class E		—			—			(37	)		(49	)		—			(3	)
Class I		—			—			(4,881	)		(812	)		—			(16	)
Class R		—			—			(6	)		(8	)		—			(3	)
Class R6		—			—			(537	)		(49	)		N/A			N/A
Class Y		—			—			(154	)		(253	)		—			(7	)
Net realized gains:
Class A		—			(73,821	)		—			—			—			—
Class B		—			(843	)		—			—			—			—
Class C		—			(7,208	)		—			—			—			—
Class E		—			(682	)		—			—			—			—
Class I		—			(17,371	)		—			—			—			—
Class R		—			(1,438	)		—			—			—			—
Class R6		—			(404	)		—			—			N/A			N/A
Class Y		—			(7,606	)		—			—			—			—
Total Distributions to Shareholders		—			(109,373	)		(15,516	)		(23,337	)		—			(1,484	)
Capital Share Transactions		(120,552	)		209,856			30,938			110,560			(14,296	)		(18,143	)
Net Increase (Decrease) in Net Assets		(16,488	)		62,326			46,129			103,107			(3,811	)		(41,304	)
Net Assets, Beginning of Period		1,752,704			1,690,378			1,810,499			1,707,392			197,729			239,033
Net Assets, End of Period	$	1,736,216		$	1,752,704		$	1,856,628		$	1,810,499		$	193,918		$	197,729
Undistributed (distributions in excess of) net investment income	$	105		$	(112	)	$	(515	)	$	—		$	187		$	(152	)

See Accompanying Notes to Financial Statements.

134 SEMIANNUAL REPORT 2016

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Micro Cap Growth Fund						Ivy Mid Cap Growth Fund						Ivy Mid Cap Income Opportunities Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	(954	)	$	(2,800	)	$	(2,330	)	$	(8,227	)	$	1,522		$	1,159
Net realized gain (loss) on investments		11,197			1,232			108,354			202,194			(2,145	)		(4,648	)
Net change in unrealized appreciation (depreciation)		32,517			(48,177	)		96,000			(737,452	)		12,079			5,563
Net Increase (Decrease) in Net Assets Resulting from Operations		42,760			(49,745	)		202,024			(543,485	)		11,456			2,074
Distributions to Shareholders From:
Net investment income:
Class A		—			—			—			—			(356	)		(873	)
Class B		—			—			—			—			N/A			N/A
Class C		—			—			—			—			(8	)		(29	)
Class E		N/A			N/A			—			—			(9	)		(32	)
Class I		—			—			—			—			(387	)		(124	)
Class R		—			—			—			—			(5	)		(23	)
Class R6		—			—			—			—			(17	)		(44	)
Class Y		—			—			—			—			(23	)		(60	)
Net realized gains:
Class A		—			(6,478	)		—			(85,052	)		—			(106	)
Class B		—			(74	)		—			(2,156	)		N/A			N/A
Class C		—			(366	)		—			(30,590	)		—			(5	)
Class E		N/A			N/A			—			(706	)		—			(3	)
Class I		—			(531	)		—			(201,843	)		—			(10	)
Class R		—			(28	)		—			(7,350	)		—			(3	)
Class R6		—			(99	)		—			(5,460	)		—			(4	)
Class Y		—			(52	)		—			(53,369	)		—			(6	)
Total Distributions to Shareholders		—			(7,628	)		—			(386,526	)		(805	)		(1,322	)
Capital Share Transactions		(22,637	)		(27,623	)		(638,215	)		(1,111,799	)		80,795			53,645
Net Increase (Decrease) in Net Assets		20,123			(84,996	)		(436,191	)		(2,041,810	)		91,446			54,397
Net Assets, Beginning of Period		151,571			236,567			3,119,286			5,161,096			120,082			65,685
Net Assets, End of Period	$	171,694		$	151,571		$	2,683,095		$	3,119,286		$	211,528		$	120,082
Undistributed (distributions in excess of) net investment income	$	(1,466	)	$	(512	)	$	(13,499	)	$	(11,178	)	$	662		$	(55	)

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 135

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Money Market Fund						Ivy Municipal Bond Fund						Ivy Municipal High Income Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	20		$	38		$	2,494		$	4,294		$	28,432		$	55,049
Net realized gain (loss) on investments		9			26			(29	)		(681	)		2,295			(1,675	)
Net change in unrealized appreciation (depreciation)		—			—			1,686			1,813			19,065			(5,755	)
Net Increase in Net Assets Resulting from Operations		29			64			4,151			5,426			49,792			47,619
Distributions to Shareholders From:
Net investment income:
Class A		(15	)		(28	)		(1,484	)		(3,635	)		(7,336	)		(15,406	)
Class B		—	*		(1	)		(17	)		(34	)		(230	)		(473	)
Class C		(4	)		(8	)		(218	)		(405	)		(4,056	)		(7,920	)
Class E		(1	)		(1	)		N/A			N/A			N/A			N/A
Class I		N/A			N/A			(741	)		(168	)		(16,164	)		(29,645	)
Class Y		N/A			N/A			(9	)		(17	)		(391	)		(791	)
Net realized gains:
Class A		—			—			—			—			—			—
Class B		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Class E		—			—			N/A			N/A			N/A			N/A
Class I		N/A			N/A			—			—			—			—
Class Y		N/A			N/A			—			—			—			—
Total Distributions to Shareholders		(20	)		(38	)		(2,469	)		(4,259	)		(28,177	)		(54,235	)
Capital Share Transactions		(29,966	)		62,924			11,104			45,434			(22,614	)		14,013
Net Increase (Decrease) in Net Assets		(29,957	)		62,950			12,786			46,601			(999	)		7,397
Net Assets, Beginning of Period		223,582			160,632			226,775			180,174			1,361,593			1,354,196
Net Assets, End of Period	$	193,625		$	223,582		$	239,561		$	226,775		$	1,360,594		$	1,361,593
Undistributed net investment income	$	—		$	—		$	171		$	146		$	3,605		$	3,350

* Not shown due to rounding.

See Accompanying Notes to Financial Statements.

136 SEMIANNUAL REPORT 2016

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Small Cap Growth Fund						Ivy Small Cap Value Fund					Ivy Tax-Managed Equity Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)		Year ended 3-31-16			Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	(3,915	)	$	(8,627	)	$	52	$	(1,188	)	$	(249	)	$	(374	)
Net realized gain (loss) on investments		45,942			80,827			19,590		6,136			(1,741	)		192
Net change in unrealized appreciation (depreciation)		54,537			(173,688	)		23,516		(20,917	)		7,085			(2,963	)
Net Increase (Decrease) in Net Assets Resulting from Operations		96,564			(101,488	)		43,158		(15,969	)		5,095			(3,145	)
Distributions to Shareholders From:
Net investment income:
Class A		—			—			—		—			—			—
Class B		—			—			—		—			—			—
Class C		—			—			—		—			—			—
Class E		—			—			—		—			N/A			N/A
Class I		—			(80	)		—		—			—			—
Class R		—			—			—		—			N/A			N/A
Class R6		—			(6	)		—		—			N/A			N/A
Class Y		—			—			—		—			—			—
Net realized gains:
Class A		—			(46,569	)		—		(26,283	)		—			(1,904	)
Class B		—			(1,469	)		—		(377	)		—			(20	)
Class C		—			(27,685	)		—		(2,245	)		—			(73	)
Class E		—			(815	)		—		(18	)		N/A			N/A
Class I		—			(20,605	)		—		(3,254	)		—			(84	)
Class R		—			(5,989	)		—		(318	)		N/A			N/A
Class R6		—			(2,365	)		—		(426	)		N/A			N/A
Class Y		—			(25,481	)		—		(980	)		—			(14	)
Total Distributions to Shareholders		—			(131,064	)		—		(33,901	)		—			(2,095	)
Capital Share Transactions		(69,715	)		25,570			37,153		(6,886	)		(6,439	)		45,598
Net Increase (Decrease) in Net Assets		26,849			(206,982	)		80,311		(56,756	)		(1,344	)		40,358
Net Assets, Beginning of Period		944,309			1,151,291			248,260		305,016			119,572			79,214
Net Assets, End of Period	$	971,158		$	944,309		$	328,571	$	248,260		$	118,228		$	119,572
Undistributed (distributions in excess of) net investment income	$	(12,474	)	$	(8,559	)	$	23	$	(29	)	$	(311	)	$	(62	)

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 137

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Value Fund
(In thousands)	Six months ended 9-30-16 (Unaudited)			Year ended 3-31-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	1,938		$	1,703
Net realized gain on investments		1,575			16,837
Net change in unrealized appreciation (depreciation)		14,555			(31,386	)
Net Increase (Decrease) in Net Assets Resulting from Operations		18,068			(12,846	)
Distributions to Shareholders From:
Net investment income:
Class A		(2,278	)		(311	)
Class B		(14	)		—
Class C		(115	)		—
Class E		(2	)		—	*
Class I		(554	)		(19	)
Class R		(3	)		—	*
Class R6		(95	)		(5	)
Class Y		(21	)		(2	)
Net realized gains:
Class A		—			(29,495	)
Class B		—			(409	)
Class C		—			(2,225	)
Class E		—			(18	)
Class I		—			(986	)
Class R		—			(39	)
Class R6		—			(201	)
Class Y		—			(194	)
Total Distributions to Shareholders		(3,082	)		(33,904	)
Capital Share Transactions		(11,391	)		(14,299	)
Net Increase (Decrease) in Net Assets		3,595			(61,049	)
Net Assets, Beginning of Period		279,439			340,488
Net Assets, End of Period	$	283,034		$	279,439
Undistributed net investment income	$	875		$	2,019

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

138 SEMIANNUAL REPORT 2016

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2016 SEMIANNUAL REPORT 139

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(1)		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 9-30-2016 (unaudited)	$	10.54	$	0.12	$	0.33		$	0.45		$	(0.13	)	$	—		$	(0.13	)
Year ended 3-31-2016		10.78		0.24		(0.22	)		0.02			(0.26	)		—			(0.26	)
Year ended 3-31-2015		10.46		0.23		0.35			0.58			(0.26	)		—			(0.26	)
Year ended 3-31-2014		10.71		0.24		(0.19	)		0.05			(0.30	)		—			(0.30	)
Year ended 3-31-2013		10.44		0.26		0.39			0.65			(0.31	)		(0.07	)		(0.38	)
Year ended 3-31-2012		10.10		0.17		0.51			0.68			(0.34	)		—			(0.34	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		10.54		0.06		0.34			0.40			(0.08	)		—			(0.08	)
Year ended 3-31-2016		10.78		0.14		(0.22	)		(0.08	)		(0.16	)		—			(0.16	)
Year ended 3-31-2015		10.46		0.13		0.35			0.48			(0.16	)		—			(0.16	)
Year ended 3-31-2014		10.71		0.15		(0.20	)		(0.05	)		(0.20	)		—			(0.20	)
Year ended 3-31-2013		10.44		0.15		0.40			0.55			(0.21	)		(0.07	)		(0.28	)
Year ended 3-31-2012		10.10		0.06		0.51			0.57			(0.23	)		—			(0.23	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		10.54		0.08		0.33			0.41			(0.09	)		—			(0.09	)
Year ended 3-31-2016		10.78		0.16		(0.22	)		(0.06	)		(0.18	)		—			(0.18	)
Year ended 3-31-2015		10.46		0.15		0.35			0.50			(0.18	)		—			(0.18	)
Year ended 3-31-2014		10.71		0.17		(0.21	)		(0.04	)		(0.21	)		—			(0.21	)
Year ended 3-31-2013		10.44		0.18		0.40			0.58			(0.24	)		(0.07	)		(0.31	)
Year ended 3-31-2012		10.10		0.09		0.51			0.60			(0.26	)		—			(0.26	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		10.54		0.12		0.33			0.45			(0.13	)		—			(0.13	)
Year ended 3-31-2016		10.78		0.24		(0.23	)		0.01			(0.25	)		—			(0.25	)
Year ended 3-31-2015		10.46		0.22		0.35			0.57			(0.25	)		—			(0.25	)
Year ended 3-31-2014		10.71		0.24		(0.20	)		0.04			(0.29	)		—			(0.29	)
Year ended 3-31-2013		10.44		0.25		0.40			0.65			(0.31	)		(0.07	)		(0.38	)
Year ended 3-31-2012		10.10		0.17		0.51			0.68			(0.34	)		—			(0.34	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		10.54		0.14		0.33			0.47			(0.15	)		—			(0.15	)
Year ended 3-31-2016		10.78		0.27		(0.22	)		0.05			(0.29	)		—			(0.29	)
Year ended 3-31-2015		10.46		0.26		0.35			0.61			(0.29	)		—			(0.29	)
Year ended 3-31-2014		10.71		0.28		(0.20	)		0.08			(0.33	)		—			(0.33	)
Year ended 3-31-2013		10.44		0.29		0.40			0.69			(0.35	)		(0.07	)		(0.42	)
Year ended 3-31-2012		10.10		0.20		0.51			0.71			(0.37	)		—			(0.37	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		10.54		0.10		0.34			0.44			(0.12	)		—			(0.12	)
Year ended 3-31-2016		10.78		0.19		(0.21	)		(0.02	)		(0.22	)		—			(0.22	)
Year ended 3-31-2015		10.46		0.20		0.35			0.55			(0.23	)		—			(0.23	)
Year ended 3-31-2014		10.71		0.21		(0.19	)		0.02			(0.27	)		—			(0.27	)
Year ended 3-31-2013(6)		10.69		0.02		0.08			0.10			(0.08	)		—			(0.08	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		10.54		0.14		0.33			0.47			(0.15	)		—			(0.15	)
Year ended 3-31-2016		10.78		0.29		(0.23	)		0.06			(0.30	)		—			(0.30	)
Year ended 3-31-2015(7)		10.58		0.18		0.22			0.40			(0.20	)		—			(0.20	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		10.54		0.12		0.33			0.45			(0.13	)		—			(0.13	)
Year ended 3-31-2016		10.78		0.25		(0.23	)		0.02			(0.26	)		—			(0.26	)
Year ended 3-31-2015		10.46		0.23		0.35			0.58			(0.26	)		—			(0.26	)
Year ended 3-31-2014		10.71		0.25		(0.20	)		0.05			(0.30	)		—			(0.30	)
Year ended 3-31-2013		10.44		0.26		0.40			0.66			(0.32	)		(0.07	)		(0.39	)
Year ended 3-31-2012		10.10		0.18		0.51			0.69			(0.35	)		—			(0.35	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

140 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	10.86		4.28	%	$	242			1.04	%(4)		2.22	%(4)		—	%		—	%		112	%
Year ended 3-31-2016		10.54		0.21			704			1.02			2.32			—			—			213
Year ended 3-31-2015		10.78		5.58			695			1.02			2.17			—			—			182
Year ended 3-31-2014		10.46		0.48			561			1.04			2.35			—			—			202
Year ended 3-31-2013		10.71		6.33			554			1.06			2.42			—			—			269
Year ended 3-31-2012		10.44		6.83			437			1.11			1.68			—			—			309
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		10.86		3.76			6			2.05	(4)		1.21	(4)		—			—			112
Year ended 3-31-2016		10.54		-0.73			7			1.96			1.37			—			—			213
Year ended 3-31-2015		10.78		4.56			6			2.00			1.19			—			—			182
Year ended 3-31-2014		10.46		-0.45			7			1.98			1.45			—			—			202
Year ended 3-31-2013		10.71		5.28			11			2.05			1.41			—			—			269
Year ended 3-31-2012		10.44		5.68			10			2.19			0.61			—			—			309
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		10.86		3.91			35			1.77	(4)		1.49	(4)		—			—			112
Year ended 3-31-2016		10.54		-0.55			33			1.78			1.56			—			—			213
Year ended 3-31-2015		10.78		4.76			28			1.80			1.38			—			—			182
Year ended 3-31-2014		10.46		-0.31			21			1.82			1.61			—			—			202
Year ended 3-31-2013		10.71		5.55			39			1.79			1.67			—			—			269
Year ended 3-31-2012		10.44		6.03			40			1.84			0.92			—			—			309
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		10.86		4.28			5			1.05	(4)		2.21	(4)		1.25	(4)		2.01	(4)		112
Year ended 3-31-2016		10.54		0.15			4			1.08			2.26			1.32			2.02			213
Year ended 3-31-2015		10.78		5.45			4			1.14			2.05			1.35			1.84			182
Year ended 3-31-2014		10.46		0.38			4			1.14			2.26			1.35			2.05			202
Year ended 3-31-2013		10.71		6.25			5			1.14			2.33			1.35			2.12			269
Year ended 3-31-2012		10.44		6.79			4			1.14			1.66			1.42			1.38			309
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		10.86		4.44			494			0.75	(4)		2.50	(4)		—			—			112
Year ended 3-31-2016		10.54		0.49			14			0.74			2.58			—			—			213
Year ended 3-31-2015		10.78		5.90			7			0.74			2.44			—			—			182
Year ended 3-31-2014		10.46		0.77			4			0.76			2.65			—			—			202
Year ended 3-31-2013		10.71		6.67			6			0.76			2.68			—			—			269
Year ended 3-31-2012		10.44		7.19			4			0.77			1.96			—			—			309
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		10.86		4.14			4			1.33	(4)		1.92	(4)		—			—			112
Year ended 3-31-2016		10.54		-0.11			3			1.34			1.89			—			—			213
Year ended 3-31-2015		10.78		5.27			—	*		1.32			1.87			—			—			182
Year ended 3-31-2014		10.46		0.18			—	*		1.35			2.04			—			—			202
Year ended 3-31-2013(6)		10.71		0.96			—	*		1.30	(4)		0.82	(4)		—			—			269	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		10.86		4.52			2			0.59	(4)		2.66	(4)		—			—			112
Year ended 3-31-2016		10.54		0.64			2			0.59			2.75			—			—			213
Year ended 3-31-2015(7)		10.78		3.81			1			0.58	(4)		2.54	(4)		—			—			182	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		10.86		4.32			5			0.98	(4)		2.28	(4)		—			—			112
Year ended 3-31-2016		10.54		0.26			3			0.98			2.35			—			—			213
Year ended 3-31-2015		10.78		5.62			3			0.99			2.20			—			—			182
Year ended 3-31-2014		10.46		0.51			3			1.00			2.42			—			—			202
Year ended 3-31-2013		10.71		6.39			5			1.00			2.49			—			—			269
Year ended 3-31-2012		10.44		6.91			8			1.03			1.78			—			—			309

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 141

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)(1)			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 9-30-2016 (unaudited)	$	12.73	$	0.01		$	0.73		$	0.74		$	—		$	—		$	—
Year ended 3-31-2016		14.29		0.02			(0.60	)		(0.58	)		—	*		(0.98	)		(0.98	)
Year ended 3-31-2015		14.04		0.02			1.33			1.35			—			(1.10	)		(1.10	)
Year ended 3-31-2014		12.15		0.05			2.67			2.72			(0.04	)		(0.79	)		(0.83	)
Year ended 3-31-2013		10.91		0.04			1.33			1.37			(0.05	)		(0.08	)		(0.13	)
Year ended 3-31-2012		10.68		0.02			0.58			0.60			—			(0.37	)		(0.37	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		10.85		(0.04	)		0.62			0.58			—			—			—
Year ended 3-31-2016		12.36		(0.09	)		(0.52	)		(0.61	)		—			(0.90	)		(0.90	)
Year ended 3-31-2015		12.32		(0.10	)		1.16			1.06			—			(1.02	)		(1.02	)
Year ended 3-31-2014		10.78		(0.07	)		2.36			2.29			—			(0.75	)		(0.75	)
Year ended 3-31-2013		9.75		(0.07	)		1.18			1.11			—			(0.08	)		(0.08	)
Year ended 3-31-2012		9.59		(0.08	)		0.52			0.44			—			(0.28	)		(0.28	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		11.19		(0.03	)		0.64			0.61			—			—			—
Year ended 3-31-2016		12.71		(0.07	)		(0.54	)		(0.61	)		—			(0.91	)		(0.91	)
Year ended 3-31-2015		12.63		(0.08	)		1.19			1.11			—			(1.03	)		(1.03	)
Year ended 3-31-2014		11.03		(0.05	)		2.41			2.36			—			(0.76	)		(0.76	)
Year ended 3-31-2013		9.95		(0.04	)		1.20			1.16			—			(0.08	)		(0.08	)
Year ended 3-31-2012		9.77		(0.06	)		0.55			0.49			—			(0.31	)		(0.31	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		12.67		0.01			0.73			0.74			—			—			—
Year ended 3-31-2016		14.23		0.00	*		(0.60	)		(0.60	)		—			(0.96	)		(0.96	)
Year ended 3-31-2015		14.00		(0.01	)		1.32			1.31			—			(1.08	)		(1.08	)
Year ended 3-31-2014		12.12		0.02			2.67			2.69			(0.02	)		(0.79	)		(0.81	)
Year ended 3-31-2013		10.89		0.03			1.32			1.35			(0.04	)		(0.08	)		(0.12	)
Year ended 3-31-2012		10.67		0.01			0.59			0.60			—			(0.38	)		(0.38	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		14.05		0.04			0.80			0.84			—			—			—
Year ended 3-31-2016		15.67		0.07			(0.66	)		(0.59	)		(0.02	)		(1.01	)		(1.03	)
Year ended 3-31-2015		15.29		0.07			1.45			1.52			(0.03	)		(1.11	)		(1.14	)
Year ended 3-31-2014		13.15		0.09			2.91			3.00			(0.07	)		(0.79	)		(0.86	)
Year ended 3-31-2013		11.78		0.08			1.44			1.52			(0.07	)		(0.08	)		(0.15	)
Year ended 3-31-2012		11.50		0.05			0.64			0.69			—			(0.41	)		(0.41	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		12.67		(0.01	)		0.72			0.71			—			—			—
Year ended 3-31-2016		14.23		(0.02	)		(0.60	)		(0.62	)		—			(0.94	)		(0.94	)
Year ended 3-31-2015		14.01		(0.03	)		1.31			1.28			—			(1.06	)		(1.06	)
Year ended 3-31-2014		12.13		0.01			2.67			2.68			(0.01	)		(0.79	)		(0.80	)
Year ended 3-31-2013(6)		11.15		0.00			0.98			0.98			—			—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		14.07		0.04			0.81			0.85			—			—			—
Year ended 3-31-2016		15.69		0.09			(0.67	)		(0.58	)		(0.02	)		(1.02	)		(1.04	)
Year ended 3-31-2015(7)		15.69		0.06			1.06			1.12			(0.01	)		(1.11	)		(1.12	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		13.69		0.03			0.79			0.82			—			—			—
Year ended 3-31-2016		15.29		0.07			(0.64	)		(0.57	)		(0.02	)		(1.01	)		(1.03	)
Year ended 3-31-2015		14.94		0.07			1.42			1.49			(0.03	)		(1.11	)		(1.14	)
Year ended 3-31-2014		12.87		0.09			2.84			2.93			(0.07	)		(0.79	)		(0.86	)
Year ended 3-31-2013		11.54		0.06			1.40			1.46			(0.05	)		(0.08	)		(0.13	)
Year ended 3-31-2012		11.27		0.03			0.63			0.66			—			(0.39	)		(0.39	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

142 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	13.47		5.81	%	$	305			1.15	%(4)		0.18	%(4)		1.20	%(4)		0.13	%(4)		31	%
Year ended 3-31-2016		12.73		-4.22			546			1.15			0.15			1.18			0.12			62
Year ended 3-31-2015		14.29		9.86			611			1.15			0.13			1.17			0.11			65
Year ended 3-31-2014		14.04		22.76			499			1.15			0.35			1.20			0.30			61
Year ended 3-31-2013		12.15		12.66			320			1.23			0.35			1.26			0.32			60
Year ended 3-31-2012		10.91		6.16			196			1.30			0.15			—			—			65
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		11.43		5.35			9			2.13	(4)		-0.80	(4)		—			—			31
Year ended 3-31-2016		10.85		-5.18			9			2.09			-0.79			—			—			62
Year ended 3-31-2015		12.36		8.80			11			2.08			-0.79			—			—			65
Year ended 3-31-2014		12.32		21.62			11			2.12			-0.62			—			—			61
Year ended 3-31-2013		10.78		11.49			10			2.24			-0.68			—			—			60
Year ended 3-31-2012		9.75		5.05			5			2.36			-0.89			—			—			65
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		11.80		5.45			123			1.92	(4)		-0.59	(4)		—			—			31
Year ended 3-31-2016		11.19		-5.00			129			1.91			-0.61			—			—			62
Year ended 3-31-2015		12.71		9.04			160			1.90			-0.62			—			—			65
Year ended 3-31-2014		12.63		21.79			144			1.94			-0.44			—			—			61
Year ended 3-31-2013		11.03		11.76			115			2.02			-0.43			—			—			60
Year ended 3-31-2012		9.95		5.46			99			2.08			-0.61			—			—			65
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		13.41		5.84			11			1.21	(4)		0.14	(4)		1.43	(4)		-0.08	(4)		31
Year ended 3-31-2016		12.67		-4.39			10			1.29			0.02			1.43			-0.12			62
Year ended 3-31-2015		14.23		9.60			10			1.35			-0.06			1.43			-0.14			65
Year ended 3-31-2014		14.00		22.57			7			1.35			0.15			1.51			-0.01			61
Year ended 3-31-2013		12.12		12.53			4			1.35			0.25			1.61			-0.01			60
Year ended 3-31-2012		10.89		6.13			3			1.35			0.10			1.72			-0.27			65
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		14.89		5.98			387			0.84	(4)		0.50	(4)		0.92	(4)		0.42	(4)		31
Year ended 3-31-2016		14.05		-3.93			172			0.84			0.46			0.90			0.40			62
Year ended 3-31-2015		15.67		10.14			234			0.84			0.45			0.90			0.39			65
Year ended 3-31-2014		15.29		23.18			153			0.84			0.63			0.91			0.56			61
Year ended 3-31-2013		13.15		13.08			60			0.91			0.69			0.93			0.67			60
Year ended 3-31-2012		11.78		6.57			28			0.94			0.47			—			—			65
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		13.38		5.60			3			1.50	(4)		-0.16	(4)		—			—			31
Year ended 3-31-2016		12.67		-4.53			2			1.50			-0.18			—			—			62
Year ended 3-31-2015		14.23		9.40			2			1.50			-0.22			—			—			65
Year ended 3-31-2014		14.01		22.41			2			1.50			0.04			—			—			61
Year ended 3-31-2013(6)		12.13		8.79			—	*		1.50	(4)		-0.13	(4)		—			—			60	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		14.92		6.04			111			0.76	(4)		0.56	(4)		—			—			31
Year ended 3-31-2016		14.07		-3.84			149			0.75			0.63			—			—			62
Year ended 3-31-2015(7)		15.69		7.39			4			0.75	(4)		0.60	(4)		—			—			65	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		14.51		5.99			89			0.84	(4)		0.49	(4)		1.15	(4)		0.18	(4)		31
Year ended 3-31-2016		13.69		-3.91			113			0.84			0.46			1.15			0.15			62
Year ended 3-31-2015		15.29		10.18			105			0.84			0.45			1.15			0.14			65
Year ended 3-31-2014		14.94		23.14			68			0.84			0.64			1.16			0.32			61
Year ended 3-31-2013		12.87		12.82			27			1.09			0.48			1.18			0.40			60
Year ended 3-31-2012		11.54		6.35			18			1.20			0.27			—			—			65

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 143

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)(1)			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 9-30-2016 (unaudited)	$	14.33	$	0.08		$	0.67		$	0.75		$	—		$	—	$	—
Year ended 3-31-2016		16.52		0.13			(2.19	)		(2.06	)		(0.13	)		—		(0.13	)
Year ended 3-31-2015		17.96		0.04			(1.48	)		(1.44	)		—			—		—
Year ended 3-31-2014		14.68		(0.03	)		3.32			3.29			(0.01	)		—		(0.01	)
Year ended 3-31-2013		13.44		0.01			1.23			1.24			—			—		—
Year ended 3-31-2012		14.00		0.02			(0.57	)		(0.55	)		(0.01	)		—		(0.01	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		13.15		(0.03	)		0.62			0.59			—			—		—
Year ended 3-31-2016		15.20		(0.04	)		(2.01	)		(2.05	)		—			—		—
Year ended 3-31-2015		16.72		(0.15	)		(1.37	)		(1.52	)		—			—		—
Year ended 3-31-2014		13.81		(0.19	)		3.10			2.91			—			—		—
Year ended 3-31-2013		12.78		(0.11	)		1.14			1.03			—			—		—
Year ended 3-31-2012		13.43		(0.09	)		(0.56	)		(0.65	)		—			—		—
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		13.50		0.02			0.65			0.67			—			—		—
Year ended 3-31-2016		15.56		0.04			(2.06	)		(2.02	)		(0.04	)		—		(0.04	)
Year ended 3-31-2015		17.03		(0.07	)		(1.40	)		(1.47	)		—			—		—
Year ended 3-31-2014		13.99		(0.12	)		3.16			3.04			—			—		—
Year ended 3-31-2013		12.88		(0.05	)		1.16			1.11			—			—		—
Year ended 3-31-2012		13.48		(0.05	)		(0.55	)		(0.60	)		—			—		—
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		14.42		0.09			0.69			0.78			—			—		—
Year ended 3-31-2016		16.60		0.15			(2.20	)		(2.05	)		(0.13	)		—		(0.13	)
Year ended 3-31-2015		18.05		0.04			(1.49	)		(1.45	)		—			—		—
Year ended 3-31-2014		14.78		(0.03	)		3.34			3.31			(0.04	)		—		(0.04	)
Year ended 3-31-2013		13.49		0.04			1.25			1.29			—			—		—
Year ended 3-31-2012		14.04		0.05			(0.57	)		(0.52	)		(0.03	)		—		(0.03	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		14.64		0.05			0.76			0.81			—			—		—
Year ended 3-31-2016		16.94		0.21			(2.25	)		(2.04	)		(0.26	)		—		(0.26	)
Year ended 3-31-2015		18.33		0.12			(1.51	)		(1.39	)		—			—		—
Year ended 3-31-2014		14.98		0.05			3.39			3.44			(0.09	)		—		(0.09	)
Year ended 3-31-2013		13.64		0.09			1.25			1.34			—			—		—
Year ended 3-31-2012		14.23		0.10			(0.59	)		(0.49	)		(0.10	)		—		(0.10	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		14.32		0.06			0.68			0.74			—			—		—
Year ended 3-31-2016		16.47		0.11			(2.17	)		(2.06	)		(0.09	)		—		(0.09	)
Year ended 3-31-2015		17.94		0.02			(1.49	)		(1.47	)		—			—		—
Year ended 3-31-2014		14.68		(0.05	)		3.32			3.27			(0.01	)		—		(0.01	)
Year ended 3-31-2013(6)		13.62		(0.01	)		1.07			1.06			—			—		—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		14.68		0.12			0.70			0.82			—			—		—
Year ended 3-31-2016		16.95		0.24			(2.25	)		(2.01	)		(0.26	)		—		(0.26	)
Year ended 3-31-2015(7)		18.57		0.08			(1.70	)		(1.62	)		—			—		—
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		14.53		0.09			0.69			0.78			—			—		—
Year ended 3-31-2016		16.77		0.17			(2.23	)		(2.06	)		(0.18	)		—		(0.18	)
Year ended 3-31-2015		18.20		0.07			(1.50	)		(1.43	)		—			—		—
Year ended 3-31-2014		14.86		(0.01	)		3.39			3.38			(0.04	)		—		(0.04	)
Year ended 3-31-2013		13.56		0.09			1.21			1.30			—			—		—
Year ended 3-31-2012		14.15		0.11			(0.59	)		(0.48	)		(0.11	)		—		(0.11	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

144 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	15.08		5.23	%	$	94			1.67	%(4)		1.13	%(4)		1.83	%(4)		0.97	%(4)		41	%
Year ended 3-31-2016		14.33		-12.51			192			1.60			0.86			1.75			0.71			18
Year ended 3-31-2015		16.52		-8.02			288			1.56			0.24			1.70			0.10			28
Year ended 3-31-2014		17.96		22.41			332			1.61			-0.20			1.75			-0.34			47
Year ended 3-31-2013		14.68		9.23			196			1.86			0.05			1.91			—			26
Year ended 3-31-2012		13.44		-3.93			200			1.86			0.16			—			—			38
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		13.74		4.49			1			3.04	(4)		-0.45	(4)		3.20	(4)		-0.61	(4)		41
Year ended 3-31-2016		13.15		-13.49			1			2.77			-0.30			2.92			-0.45			18
Year ended 3-31-2015		15.20		-9.09			2			2.73			-0.91			2.87			-1.05			28
Year ended 3-31-2014		16.72		21.07			4			2.72			-1.23			2.86			-1.37			47
Year ended 3-31-2013		13.81		8.06			6			2.94			-0.92			2.99			-0.97			26
Year ended 3-31-2012		12.78		-4.84			10			2.81			-0.76			—			—			38
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		14.17		4.96			13			2.22	(4)		0.35	(4)		2.38	(4)		0.19	(4)		41
Year ended 3-31-2016		13.50		-12.98			15			2.20			0.25			2.35			0.10			18
Year ended 3-31-2015		15.56		-8.63			19			2.19			-0.39			2.33			-0.53			28
Year ended 3-31-2014		17.03		21.73			24			2.22			-0.78			2.36			-0.92			47
Year ended 3-31-2013		13.99		8.62			21			2.39			-0.44			2.44			-0.49			26
Year ended 3-31-2012		12.88		-4.45			26			2.42			-0.39			—			—			38
Class E Shares
Six-month period ended 9-30-2016(unaudited)		15.20		5.41			1			1.40	(4)		1.16	(4)		2.25	(4)		0.31	(4)		41
Year ended 3-31-2016		14.42		-12.39			1			1.50			0.96			2.13			0.33			18
Year ended 3-31-2015		16.60		-8.03			1			1.59			0.21			2.00			-0.20			28
Year ended 3-31-2014		18.05		22.43			1			1.59			-0.17			2.08			-0.65			47
Year ended 3-31-2013		14.78		9.56			1			1.59			0.28			2.35			-0.48			26
Year ended 3-31-2012		13.49		-3.66			1			1.59			0.42			2.36			-0.35			38
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		15.45		5.53			88			1.20	(4)		0.71	(4)		1.36	(4)		0.55	(4)		41
Year ended 3-31-2016		14.64		-12.11			4			1.14			1.32			1.29			1.17			18
Year ended 3-31-2015		16.94		-7.58			5			1.12			0.64			1.26			0.50			28
Year ended 3-31-2014		18.33		22.98			7			1.14			0.27			1.28			0.13			47
Year ended 3-31-2013		14.98		9.82			4			1.24			0.70			1.29			0.65			26
Year ended 3-31-2012		13.64		-3.32			5			1.27			0.75			—			—			38
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		15.06		5.17			—	*		1.75	(4)		0.80	(4)		1.91	(4)		0.64	(4)		41
Year ended 3-31-2016		14.32		-12.53			—	*		1.73			0.73			1.88			0.58			18
Year ended 3-31-2015		16.47		-8.19			—	*		1.72			0.09			1.86			-0.05			28
Year ended 3-31-2014		17.94		22.30			—	*		1.72			-0.28			1.86			-0.42			47
Year ended 3-31-2013(6)		14.68		7.78			—	*		1.66	(4)		-0.37	(4)		1.71	(4)		-0.42	(4)		26	(8)
Class R6 Shares
Six-month period ended 9-30-2016(unaudited)		15.50		5.59			1			1.00	(4)		1.55	(4)		1.16	(4)		1.39	(4)		41
Year ended 3-31-2016		14.68		-11.92			1			0.98			1.48			1.13			1.33			18
Year ended 3-31-2015(7)		16.95		-8.72			1			0.95	(4)		0.72	(4)		1.09	(4)		0.58	(4)		28	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		15.31		5.37			2			1.41	(4)		1.17	(4)		1.57	(4)		1.01	(4)		41
Year ended 3-31-2016		14.53		-12.32			2			1.40			1.13			1.55			0.98			18
Year ended 3-31-2015		16.77		-7.86			3			1.38			0.41			1.52			0.27			28
Year ended 3-31-2014		18.20		22.76			4			1.35			-0.04			1.49			-0.18			47
Year ended 3-31-2013		14.86		9.59			4			1.47			0.74			1.63			0.58			26
Year ended 3-31-2012		13.56		-3.24			13			1.20			0.85			1.54			0.51			38

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 145

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(1)		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 9-30-2016 (unaudited)	$	16.99	$	0.11	$	0.72		$	0.83		$	(0.12	)	$	—		$	(0.12	)
Year ended 3-31-2016		19.55		0.17		(1.04	)		(0.87	)		(0.14	)		(1.55	)		(1.69	)
Year ended 3-31-2015		20.27		0.22		1.39			1.61			(0.22	)		(2.11	)		(2.33	)
Year ended 3-31-2014		17.20		0.19		3.33			3.52			(0.16	)		(0.29	)		(0.45	)
Year ended 3-31-2013		15.70		0.23		1.48			1.71			(0.21	)		—			(0.21	)
Year ended 3-31-2012		16.14		0.18		(0.44	)		(0.26	)		(0.18	)		—			(0.18	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		16.68		0.04		0.71			0.75			(0.03	)		—			(0.03	)
Year ended 3-31-2016		19.22		0.03		(1.02	)		(0.99	)		(0.01	)		(1.54	)		(1.55	)
Year ended 3-31-2015		19.97		0.06		1.37			1.43			(0.07	)		(2.11	)		(2.18	)
Year ended 3-31-2014		16.99		0.05		3.27			3.32			(0.05	)		(0.29	)		(0.34	)
Year ended 3-31-2013		15.54		0.09		1.48			1.57			(0.12	)		—			(0.12	)
Year ended 3-31-2012		15.98		0.04		(0.43	)		(0.39	)		(0.05	)		—			(0.05	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		16.76		0.05		0.72			0.77			(0.04	)		—			(0.04	)
Year ended 3-31-2016		19.31		0.05		(1.03	)		(0.98	)		(0.02	)		(1.55	)		(1.57	)
Year ended 3-31-2015		20.05		0.08		1.38			1.46			(0.09	)		(2.11	)		(2.20	)
Year ended 3-31-2014		17.05		0.07		3.29			3.36			(0.07	)		(0.29	)		(0.36	)
Year ended 3-31-2013		15.59		0.11		1.49			1.60			(0.14	)		—			(0.14	)
Year ended 3-31-2012		16.03		0.07		(0.43	)		(0.36	)		(0.08	)		—			(0.08	)
Class E Shares
Six-month period ended 9-30-2016(unaudited)		16.94		0.11		0.72			0.83			(0.13	)		—			(0.13	)
Year ended 3-31-2016		19.48		0.17		(1.03	)		(0.86	)		(0.13	)		(1.55	)		(1.68	)
Year ended 3-31-2015		20.21		0.19		1.39			1.58			(0.20	)		(2.11	)		(2.31	)
Year ended 3-31-2014		17.16		0.17		3.32			3.49			(0.15	)		(0.29	)		(0.44	)
Year ended 3-31-2013		15.66		0.21		1.49			1.70			(0.20	)		—			(0.20	)
Year ended 3-31-2012		16.10		0.17		(0.44	)		(0.27	)		(0.17	)		—			(0.17	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		17.07		0.14		0.71			0.85			(0.16	)		—			(0.16	)
Year ended 3-31-2016		19.61		0.23		(1.04	)		(0.81	)		(0.18	)		(1.55	)		(1.73	)
Year ended 3-31-2015		20.33		0.28		1.40			1.68			(0.29	)		(2.11	)		(2.40	)
Year ended 3-31-2014		17.25		0.26		3.33			3.59			(0.22	)		(0.29	)		(0.51	)
Year ended 3-31-2013		15.73		0.28		1.49			1.77			(0.25	)		—			(0.25	)
Year ended 3-31-2012		16.17		0.24		(0.45	)		(0.21	)		(0.23	)		—			(0.23	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		16.97		0.09		0.71			0.80			(0.09	)		—			(0.09	)
Year ended 3-31-2016		19.53		0.12		(1.03	)		(0.91	)		(0.10	)		(1.55	)		(1.65	)
Year ended 3-31-2015		20.25		0.16		1.40			1.56			(0.17	)		(2.11	)		(2.28	)
Year ended 3-31-2014		17.19		0.14		3.33			3.47			(0.12	)		(0.29	)		(0.41	)
Year ended 3-31-2013(6)		15.79		0.01		1.39			1.40			—			—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		17.10		0.14		0.73			0.87			(0.18	)		—			(0.18	)
Year ended 3-31-2016		19.64		0.25		(1.03	)		(0.78	)		(0.21	)		(1.55	)		(1.76	)
Year ended 3-31-2015(7)		20.64		0.20		1.15			1.35			(0.24	)		(2.11	)		(2.35	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		17.03		0.11		0.72			0.83			(0.13	)		—			(0.13	)
Year ended 3-31-2016		19.58		0.19		(1.04	)		(0.85	)		(0.15	)		(1.55	)		(1.70	)
Year ended 3-31-2015		20.30		0.23		1.40			1.63			(0.24	)		(2.11	)		(2.35	)
Year ended 3-31-2014		17.23		0.21		3.33			3.54			(0.18	)		(0.29	)		(0.47	)
Year ended 3-31-2013		15.72		0.24		1.50			1.74			(0.23	)		—			(0.23	)
Year ended 3-31-2012		16.16		0.19		(0.44	)		(0.25	)		(0.19	)		—			(0.19	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

146 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	17.70		4.91	%	$	147			1.26	%(4)		1.20	%(4)		—	%		—	%		22	%
Year ended 3-31-2016		16.99		-4.65			275			1.25			0.94			—			—			45
Year ended 3-31-2015		19.55		8.19			322			1.24			1.07			—			—			48
Year ended 3-31-2014		20.27		20.70			291			1.27			1.03			—			—			43
Year ended 3-31-2013		17.20		11.06			246			1.28			1.43			—			—			45
Year ended 3-31-2012		15.70		-1.54			261			1.29			1.21			—			—			37
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		17.40		4.48			8			2.04	(4)		0.42	(4)		—			—			22
Year ended 3-31-2016		16.68		-5.32			8			2.03			0.17			—			—			45
Year ended 3-31-2015		19.22		7.33			12			2.01			0.30			—			—			48
Year ended 3-31-2014		19.97		19.70			13			2.05			0.25			—			—			43
Year ended 3-31-2013		16.99		10.10			11			2.13			0.60			—			—			45
Year ended 3-31-2012		15.54		-2.35			15			2.18			0.30			—			—			37
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		17.49		4.58			42			1.92	(4)		0.54	(4)		—			—			22
Year ended 3-31-2016		16.76		-5.26			44			1.93			0.27			—			—			45
Year ended 3-31-2015		19.31		7.46			54			1.91			0.40			—			—			48
Year ended 3-31-2014		20.05		19.85			47			1.93			0.37			—			—			43
Year ended 3-31-2013		17.05		10.32			39			1.97			0.73			—			—			45
Year ended 3-31-2012		15.59		-2.23			43			2.00			0.48			—			—			37
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		17.64		4.89			5			1.19	(4)		1.27	(4)		1.58	(4)		0.88	(4)		22
Year ended 3-31-2016		16.94		-4.59			5			1.28			0.91			1.56			0.63			45
Year ended 3-31-2015		19.48		8.01			5			1.37			0.94			1.58			0.73			48
Year ended 3-31-2014		20.21		20.52			4			1.37			0.93			1.66			0.64			43
Year ended 3-31-2013		17.16		11.00			4			1.36			1.31			1.80			0.87			45
Year ended 3-31-2012		15.66		-1.61			3			1.37			1.14			1.92			0.59			37
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		17.76		5.00			162			0.97	(4)		1.52	(4)		—			—			22
Year ended 3-31-2016		17.07		-4.27			22			0.94			1.25			—			—			45
Year ended 3-31-2015		19.61		8.50			23			0.93			1.38			—			—			48
Year ended 3-31-2014		20.33		21.06			19			0.94			1.36			—			—			43
Year ended 3-31-2013		17.25		11.45			15			0.93			1.74			—			—			45
Year ended 3-31-2012		15.73		-1.18			14			0.94			1.60			—			—			37
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		17.68		4.70			—	*		1.53	(4)		0.97	(4)		—			—			22
Year ended 3-31-2016		16.97		-4.87			—	*		1.53			0.66			—			—			45
Year ended 3-31-2015		19.53		7.90			—	*		1.52			0.80			—			—			48
Year ended 3-31-2014		20.25		20.29			—	*		1.54			0.76			—			—			43
Year ended 3-31-2013(6)		17.19		8.93			—	*		1.51	(4)		0.23	(4)		—			—			45	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		17.79		5.12			2			0.81	(4)		1.61	(4)		—			—			22
Year ended 3-31-2016		17.10		-4.16			1			0.79			1.39			—			—			45
Year ended 3-31-2015(7)		19.64		6.76			—	*		0.79	(4)		1.46	(4)		—			—			48	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		17.73		4.89			6			1.19	(4)		1.27	(4)		—			—			22
Year ended 3-31-2016		17.03		-4.53			7			1.19			1.01			—			—			45
Year ended 3-31-2015		19.58		8.25			10			1.18			1.13			—			—			48
Year ended 3-31-2014		20.30		20.74			11			1.19			1.11			—			—			43
Year ended 3-31-2013		17.23		11.19			12			1.18			1.51			—			—			45
Year ended 3-31-2012		15.72		-1.43			15			1.19			1.27			—			—			37

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 147

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY EMERGING MARKETS EQUITY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			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 9-30-2016 (unaudited)	$	13.59	$	0.01		$	2.05		$	2.06		$	—		$	—		$	—
Year ended 3-31-2016		16.04		0.00	*		(2.33	)		(2.33	)		(0.12	)		—			(0.12	)
Year ended 3-31-2015		15.04		0.04			1.08			1.12			(0.12	)		—			(0.12	)
Year ended 3-31-2014		13.88		0.02			1.22			1.24			(0.08	)		—			(0.08	)
Year ended 3-31-2013		13.98		0.03			(0.03	)		0.00			(0.10	)		—			(0.10	)
Year ended 3-31-2012		16.94		0.01			(2.39	)		(2.38	)		(0.06	)		(0.52	)		(0.58	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		11.34		(0.05	)		1.71			1.66			—			—			—
Year ended 3-31-2016		13.48		(0.12	)		(1.95	)		(2.07	)		(0.07	)		—			(0.07	)
Year ended 3-31-2015		12.66		(0.10	)		0.92			0.82			—			—			—
Year ended 3-31-2014		11.78		(0.12	)		1.00			0.88			—			—			—
Year ended 3-31-2013		11.92		(0.10	)		(0.04	)		(0.14	)		—	*		—			—	*
Year ended 3-31-2012		14.64		(0.13	)		(2.07	)		(2.20	)		—			(0.52	)		(0.52	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		11.84		(0.04	)		1.78			1.74			—			—			—
Year ended 3-31-2016		14.05		(0.11	)		(2.03	)		(2.14	)		(0.07	)		—			(0.07	)
Year ended 3-31-2015		13.20		(0.09	)		0.95			0.86			(0.01	)		—			(0.01	)
Year ended 3-31-2014		12.23		(0.07	)		1.06			0.99			(0.02	)		—			(0.02	)
Year ended 3-31-2013		12.36		(0.06	)		(0.03	)		(0.09	)		(0.04	)		—			(0.04	)
Year ended 3-31-2012		15.10		(0.08	)		(2.14	)		(2.22	)		—			(0.52	)		(0.52	)
Class E Shares(6)
Six-month period ended 9-30-2016 (unaudited)		13.76		0.02			2.08			2.10			—			—			—
Year ended 3-31-2016		16.23		0.03			(2.37	)		(2.34	)		(0.13	)		—			(0.13	)
Year ended 3-31-2015		15.23		0.05			1.10			1.15			(0.15	)		—			(0.15	)
Year ended 3-31-2014		14.04		0.06			1.25			1.31			(0.12	)		—			(0.12	)
Year ended 3-31-2013		14.12		0.09			(0.03	)		0.06			(0.14	)		—			(0.14	)
Year ended 3-31-2012		17.15		0.06			(2.41	)		(2.35	)		(0.16	)		(0.52	)		(0.68	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		13.96		0.03			2.11			2.14			—			—			—
Year ended 3-31-2016		16.45		0.05			(2.40	)		(2.35	)		(0.14	)		—			(0.14	)
Year ended 3-31-2015		15.43		0.08			1.11			1.19			(0.17	)		—			(0.17	)
Year ended 3-31-2014		14.23		0.09			1.26			1.35			(0.15	)		—			(0.15	)
Year ended 3-31-2013		14.30		0.10			(0.02	)		0.08			(0.15	)		—			(0.15	)
Year ended 3-31-2012		17.39		0.08			(2.46	)		(2.38	)		(0.19	)		(0.52	)		(0.71	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		13.53		(0.01	)		2.04			2.03			—			—			—
Year ended 3-31-2016		16.01		(0.05	)		(2.32	)		(2.37	)		(0.11	)		—			(0.11	)
Year ended 3-31-2015		15.02		(0.02	)		1.09			1.07			(0.08	)		—			(0.08	)
Year ended 3-31-2014		13.87		(0.01	)		1.23			1.22			(0.07	)		—			(0.07	)
Year ended 3-31-2013(7)		14.07		(0.04	)		(0.16	)		(0.20	)		—			—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		14.01		0.04			2.12			2.16			—			—			—
Year ended 3-31-2016		16.50		0.06			(2.41	)		(2.35	)		(0.14	)		—			(0.14	)
Year ended 3-31-2015(8)		16.41		(0.03	)		0.26			0.23			(0.14	)		—			(0.14	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		13.84		0.01			2.09			2.10			—			—			—
Year ended 3-31-2016		16.33		0.05			(2.42	)		(2.37	)		(0.12	)		—			(0.12	)
Year ended 3-31-2015		15.33		0.03			1.10			1.13			(0.13	)		—			(0.13	)
Year ended 3-31-2014		14.13		0.05			1.26			1.31			(0.11	)		—			(0.11	)
Year ended 3-31-2013		14.22		0.09			(0.05	)		0.04			(0.13	)		—			(0.13	)
Year ended 3-31-2012		17.25		0.05			(2.44	)		(2.39	)		(0.12	)		(0.52	)		(0.64	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) Class share is closed to investment.

(7) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(8) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(10) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

148 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	15.65		15.16	%	$	260			1.52	%(4)		0.12	%(4)		1.69	%(4)		-0.05	%(4)		36	%
Year ended 3-31-2016		13.59		-14.49			360			1.50			0.02			1.67			-0.15			98
Year ended 3-31-2015		16.04		7.48			436			1.50			0.23			1.67			0.06			103
Year ended 3-31-2014		15.04		8.95			536			1.73			0.17			—			—			138
Year ended 3-31-2013		13.88		-0.02			491			1.74			0.25			—			—			142
Year ended 3-31-2012		13.98		-13.71			504			1.75			0.04			—			—			97
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		13.00		14.64			5			2.50	(4)		-0.83	(4)		2.83	(4)		-1.16	(4)		36
Year ended 3-31-2016		11.34		-15.38			4			2.50			-0.99			2.72			-1.21			98
Year ended 3-31-2015		13.48		6.48			7			2.50			-0.75			2.71			-0.96			103
Year ended 3-31-2014		12.66		7.47			9			3.00			-1.04			—			—			138
Year ended 3-31-2013		11.78		-1.13			8			2.94			-0.88			—			—			142
Year ended 3-31-2012		11.92		-14.69			10			2.88			-1.03			—			—			97
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		13.58		14.70			35			2.38	(4)		-0.71	(4)		—			—			36
Year ended 3-31-2016		11.84		-15.20			32			2.35			-0.83			—			—			98
Year ended 3-31-2015		14.05		6.56			35			2.40			-0.66			—			—			103
Year ended 3-31-2014		13.20		8.06			44			2.47			-0.59			—			—			138
Year ended 3-31-2013		12.23		-0.77			16			2.53			-0.48			—			—			142
Year ended 3-31-2012		12.36		-14.37			20			2.51			-0.63			—			—			97
Class E Shares(6)
Six-month period ended 9-30-2016 (unaudited)		15.86		15.26			—	*		1.36	(4)		0.30	(4)		—			—			36
Year ended 3-31-2016		13.76		-14.40			—	*		1.35			0.17			—			—			98
Year ended 3-31-2015		16.23		7.63			—	*		1.34			0.34			—			—			103
Year ended 3-31-2014		15.23		9.35			—	*		1.35			0.44			—			—			138
Year ended 3-31-2013		14.04		0.40			—	*		1.34			0.64			—			—			142
Year ended 3-31-2012		14.12		-13.32			—	*		1.37			0.41			—			—			97
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		16.10		15.33			256			1.26	(4)		0.44	(4)		—			—			36
Year ended 3-31-2016		13.96		-14.30			116			1.22			0.35			—			—			98
Year ended 3-31-2015		16.45		7.78			117			1.23			0.49			—			—			103
Year ended 3-31-2014		15.43		9.52			139			1.22			0.62			—			—			138
Year ended 3-31-2013		14.23		0.55			147			1.22			0.69			—			—			142
Year ended 3-31-2012		14.30		-13.28			138			1.25			0.52			—			—			97
Class R Shares
Six-month period ended 9-30-2016(unaudited)		15.56		15.00			8			1.84	(4)		-0.18	(4)		—			—			36
Year ended 3-31-2016		13.53		-14.82			5			1.85			-0.37			—			—			98
Year ended 3-31-2015		16.01		7.13			1			1.83			-0.16			—			—			103
Year ended 3-31-2014		15.02		8.75			1			1.83			-0.05			—			—			138
Year ended 3-31-2013(7)		13.87		-1.35			—	*		1.80	(4)		-1.09	(4)		—			—			142	(9)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		16.17		15.42			9			1.10	(4)		0.59	(4)		—			—			36
Year ended 3-31-2016		14.01		-14.20			7			1.09			0.43			—			—			98
Year ended 3-31-2015(8)		16.50		1.47			6			1.08	(4)		-0.30	(4)		—			—			103	(10)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		15.94		15.17			20			1.52	(4)		0.14	(4)		—			—			36
Year ended 3-31-2016		13.84		-14.48			10			1.47			0.33			—			—			98
Year ended 3-31-2015		16.33		7.41			10			1.50			0.20			1.53			0.17			103
Year ended 3-31-2014		15.33		9.19			11			1.47			0.34			—			—			138
Year ended 3-31-2013		14.13		0.31			5			1.47			0.63			—			—			142
Year ended 3-31-2012		14.22		-13.48			6			1.50			0.30			—			—			97

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 149

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)(1)			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 9-30-2016 (unaudited)	$	26.29	$	0.41		$	0.50		$	0.91		$	—		$	—	$	—
Year ended 3-31-2016		29.19		0.13			(2.93	)		(2.80	)		(0.10	)		—		(0.10	)
Year ended 3-31-2015		29.76		0.17			(0.24	)		(0.07	)		(0.50	)		—		(0.50	)
Year ended 3-31-2014		24.70		0.32			4.82			5.14			(0.08	)		—		(0.08	)
Year ended 3-31-2013		22.89		0.07			1.83			1.90			(0.09	)		—		(0.09	)
Year ended 3-31-2012		24.61		0.07			(1.72	)		(1.65	)		(0.07	)		—		(0.07	)
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		24.31		0.18			0.52			0.70			—			—		—
Year ended 3-31-2016		27.21		(0.13	)		(2.77	)		(2.90	)		—			—		—
Year ended 3-31-2015		27.66		(0.14	)		(0.22	)		(0.36	)		(0.09	)		—		(0.09	)
Year ended 3-31-2014		23.16		0.01			4.49			4.50			—			—		—
Year ended 3-31-2013		21.62		(0.15	)		1.69			1.54			—			—		—
Year ended 3-31-2012		23.40		(0.13	)		(1.65	)		(1.78	)		—			—		—
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		24.89		0.25			0.53			0.78			—			—		—
Year ended 3-31-2016		27.73		(0.06	)		(2.78	)		(2.84	)		—			—		—
Year ended 3-31-2015		28.25		(0.02	)		(0.21	)		(0.23	)		(0.29	)		—		(0.29	)
Year ended 3-31-2014		23.53		0.16			4.56			4.72			—			—		—
Year ended 3-31-2013		21.86		(0.06	)		1.73			1.67			—			—		—
Year ended 3-31-2012		23.58		(0.06	)		(1.66	)		(1.72	)		—			—		—
Class E Shares(5)
Six-month period ended 9-30-2016 (unaudited)		26.46		0.38			0.58			0.96			—			—		—
Year ended 3-31-2016		29.36		0.24			(2.98	)		(2.74	)		(0.16	)		—		(0.16	)
Year ended 3-31-2015		29.93		0.27			(0.21	)		0.06			(0.63	)		—		(0.63	)
Year ended 3-31-2014		24.84		0.44			4.85			5.29			(0.20	)		—		(0.20	)
Year ended 3-31-2013		23.02		0.18			1.84			2.02			(0.20	)		—		(0.20	)
Year ended 3-31-2012		24.76		0.18			(1.74	)		(1.56	)		(0.18	)		—		(0.18	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		26.50		0.29			0.70			0.99			—			—		—
Year ended 3-31-2016		29.39		0.20			(2.90	)		(2.70	)		(0.19	)		—		(0.19	)
Year ended 3-31-2015		29.97		0.32			(0.24	)		0.08			(0.66	)		—		(0.66	)
Year ended 3-31-2014		24.87		0.48			4.85			5.33			(0.23	)		—		(0.23	)
Year ended 3-31-2013		23.04		0.26			1.81			2.07			(0.24	)		—		(0.24	)
Year ended 3-31-2012		24.82		0.21			(1.75	)		(1.54	)		(0.24	)		—		(0.24	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		26.27		0.31			0.58			0.89			—			—		—
Year ended 3-31-2016		29.18		0.08			(2.93	)		(2.85	)		(0.06	)		—		(0.06	)
Year ended 3-31-2015		29.75		0.12			(0.21	)		(0.09	)		(0.48	)		—		(0.48	)
Year ended 3-31-2014		24.70		0.31			4.82			5.13			(0.08	)		—		(0.08	)
Year ended 3-31-2013(6)		24.16		0.00			0.54			0.54			—			—		—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		26.62		0.43			0.58			1.01			—			—		—
Year ended 3-31-2016		29.51		0.31			(2.98	)		(2.67	)		(0.22	)		—		(0.22	)
Year ended 3-31-2015(7)		29.18		0.05			0.85			0.90			(0.57	)		—		(0.57	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		26.46		0.36			0.58			0.94			—			—		—
Year ended 3-31-2016		29.38		0.16			(2.95	)		(2.79	)		(0.13	)		—		(0.13	)
Year ended 3-31-2015		29.95		0.17			(0.16	)		0.01			(0.58	)		—		(0.58	)
Year ended 3-31-2014		24.86		0.44			4.81			5.25			(0.16	)		—		(0.16	)
Year ended 3-31-2013		23.04		0.15			1.85			2.00			(0.18	)		—		(0.18	)
Year ended 3-31-2012		24.75		0.17			(1.75	)		(1.58	)		(0.13	)		—		(0.13	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(5) Class share is closed to investment.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

150 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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 9-30-2016 (unaudited)	$	27.20		3.46	%	$	82			1.69	%(3)		3.06	%(3)		41	%
Year ended 3-31-2016		26.29		-9.62			166			1.64			0.46			91
Year ended 3-31-2015		29.19		-0.13			150			1.70			0.57			172
Year ended 3-31-2014		29.76		20.83			163			1.76			1.17			116
Year ended 3-31-2013		24.70		8.31			162			1.81			0.32			71
Year ended 3-31-2012		22.89		-6.67			167			1.84			0.33			49
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		25.01		2.88			1			2.82	(3)		1.47	(3)		41
Year ended 3-31-2016		24.31		-10.66			1			2.73			-0.50			91
Year ended 3-31-2015		27.21		-1.27			2			2.90			-0.50			172
Year ended 3-31-2014		27.66		19.43			2			2.91			0.04			116
Year ended 3-31-2013		23.16		7.12			3			2.89			-0.68			71
Year ended 3-31-2012		21.62		-7.61			5			2.84			-0.63			49
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		25.67		3.13			9			2.33	(3)		1.95	(3)		41
Year ended 3-31-2016		24.89		-10.24			11			2.29			-0.22			91
Year ended 3-31-2015		27.73		-0.75			10			2.35			-0.06			172
Year ended 3-31-2014		28.25		20.06			11			2.37			0.61			116
Year ended 3-31-2013		23.53		7.64			9			2.43			-0.26			71
Year ended 3-31-2012		21.86		-7.29			11			2.47			-0.26			49
Class E Shares(5)
Six-month period ended 9-30-2016 (unaudited)		27.42		3.63			—	*		1.32	(3)		2.83	(3)		41
Year ended 3-31-2016		26.46		-9.37			—	*		1.31			0.84			91
Year ended 3-31-2015		29.36		0.30			—	*		1.31			0.92			172
Year ended 3-31-2014		29.93		21.34			—	*		1.33			1.62			116
Year ended 3-31-2013		24.84		8.83			—	*		1.31			0.79			71
Year ended 3-31-2012		23.02		-6.18			—	*		1.32			0.80			49
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		27.49		3.74			109			1.21	(3)		2.19	(3)		41
Year ended 3-31-2016		26.50		-9.24			43			1.18			0.72			91
Year ended 3-31-2015		29.39		0.38			27			1.21			1.09			172
Year ended 3-31-2014		29.97		21.50			31			1.19			1.76			116
Year ended 3-31-2013		24.87		8.96			37			1.18			1.13			71
Year ended 3-31-2012		23.04		-6.06			53			1.19			0.94			49
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		27.16		3.39			1			1.80	(3)		2.35	(3)		41
Year ended 3-31-2016		26.27		-9.77			—	*		1.79			0.28			91
Year ended 3-31-2015		29.18		-0.21			—	*		1.81			0.42			172
Year ended 3-31-2014		29.75		20.73			—	*		1.79			1.15			116
Year ended 3-31-2013(6)		24.70		2.28			—	*		1.74	(3)		0.02	(3)		71	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		27.63		3.79			1			1.06	(3)		3.19	(3)		41
Year ended 3-31-2016		26.62		-9.11			2			1.04			1.07			91
Year ended 3-31-2015(7)		29.51		3.20			2			1.08	(3)		0.26	(3)		172	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		27.40		3.55			1			1.51	(3)		2.71	(3)		41
Year ended 3-31-2016		26.46		-9.52			1			1.47			0.57			91
Year ended 3-31-2015		29.38		0.15			2			1.47			0.58			172
Year ended 3-31-2014		29.95		21.17			3			1.46			1.57			116
Year ended 3-31-2013		24.86		8.71			1			1.42			0.66			71
Year ended 3-31-2012		23.04		-6.30			2			1.45			0.75			49

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 151

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(1)		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 9-30-2016 (unaudited)	$	9.17	$	0.18	$	0.29		$	0.47		$	(0.09	)	$	—		$	(0.09	)
Year ended 3-31-2016		9.59		0.34		(0.49	)		(0.15	)		(0.27	)		—			(0.27	)
Year ended 3-31-2015		10.06		0.34		(0.49	)		(0.15	)		(0.32	)		—			(0.32	)
Year ended 3-31-2014		10.26		0.35		(0.19	)		0.16			(0.34	)		(0.02	)		(0.36	)
Year ended 3-31-2013		10.20		0.40		0.11			0.51			(0.42	)		(0.03	)		(0.45	)
Year ended 3-31-2012		10.35		0.39		(0.11	)		0.28			(0.39	)		(0.04	)		(0.43	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		9.16		0.14		0.29			0.43			(0.05	)		—			(0.05	)
Year ended 3-31-2016		9.58		0.27		(0.49	)		(0.22	)		(0.20	)		—			(0.20	)
Year ended 3-31-2015		10.06		0.26		(0.49	)		(0.23	)		(0.25	)		—			(0.25	)
Year ended 3-31-2014		10.25		0.27		(0.18	)		0.09			(0.26	)		(0.02	)		(0.28	)
Year ended 3-31-2013		10.19		0.32		0.11			0.43			(0.34	)		(0.03	)		(0.37	)
Year ended 3-31-2012		10.35		0.31		(0.12	)		0.19			(0.31	)		(0.04	)		(0.35	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		9.16		0.14		0.30			0.44			(0.05	)		—			(0.05	)
Year ended 3-31-2016		9.59		0.27		(0.50	)		(0.23	)		(0.20	)		—			(0.20	)
Year ended 3-31-2015		10.06		0.26		(0.48	)		(0.22	)		(0.25	)		—			(0.25	)
Year ended 3-31-2014		10.25		0.27		(0.18	)		0.09			(0.26	)		(0.02	)		(0.28	)
Year ended 3-31-2013		10.19		0.32		0.11			0.43			(0.34	)		(0.03	)		(0.37	)
Year ended 3-31-2012		10.35		0.31		(0.12	)		0.19			(0.31	)		(0.04	)		(0.35	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		9.16		0.17		0.32			0.49			(0.10	)		—			(0.10	)
Year ended 3-31-2016		9.59		0.36		(0.49	)		(0.13	)		(0.30	)		—			(0.30	)
Year ended 3-31-2015		10.06		0.36		(0.48	)		(0.12	)		(0.35	)		—			(0.35	)
Year ended 3-31-2014		10.25		0.37		(0.18	)		0.19			(0.36	)		(0.02	)		(0.38	)
Year ended 3-31-2013		10.19		0.42		0.11			0.53			(0.44	)		(0.03	)		(0.47	)
Year ended 3-31-2012		10.35		0.41		(0.11	)		0.30			(0.42	)		(0.04	)		(0.46	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		9.15		0.15		0.30			0.45			(0.07	)		—			(0.07	)
Year ended 3-31-2016		9.57		0.29		(0.48	)		(0.19	)		(0.23	)		—			(0.23	)
Year ended 3-31-2015		10.05		0.29		(0.49	)		(0.20	)		(0.28	)		—			(0.28	)
Year ended 3-31-2014		10.24		0.29		(0.18	)		0.11			(0.28	)		(0.02	)		(0.30	)
Year ended 3-31-2013(6)		10.17		0.09		0.04			0.13			(0.06	)		—			(0.06	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		9.17		0.17		0.31			0.48			(0.10	)		—			(0.10	)
Year ended 3-31-2016		9.59		0.36		(0.48	)		(0.12	)		(0.30	)		—			(0.30	)
Year ended 3-31-2015(7)		10.15		0.24		(0.56	)		(0.32	)		(0.24	)		—			(0.24	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		9.17		0.17		0.30			0.47			(0.09	)		—			(0.09	)
Year ended 3-31-2016		9.59		0.34		(0.49	)		(0.15	)		(0.27	)		—			(0.27	)
Year ended 3-31-2015		10.07		0.34		(0.50	)		(0.16	)		(0.32	)		—			(0.32	)
Year ended 3-31-2014		10.26		0.34		(0.18	)		0.16			(0.33	)		(0.02	)		(0.35	)
Year ended 3-31-2013		10.20		0.40		0.11			0.51			(0.42	)		(0.03	)		(0.45	)
Year ended 3-31-2012		10.36		0.39		(0.12	)		0.27			(0.39	)		(0.04	)		(0.43	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

152 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	9.55		5.15	%	$	59			0.99	%(4)		3.88	%(4)		1.34	%(4)		3.53	%(4)		4	%
Year ended 3-31-2016		9.17		-1.54			133			0.99			3.60			1.29			3.30			14
Year ended 3-31-2015		9.59		-1.54			177			0.99			3.39			1.22			3.16			26
Year ended 3-31-2014		10.06		1.65			187			0.99			3.43			1.25			3.17			21
Year ended 3-31-2013		10.26		5.12			174			0.99			3.92			1.24			3.67			26
Year ended 3-31-2012		10.20		2.74			158			0.99			3.81			1.25			3.55			26
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		9.54		4.75			3			1.74	(4)		2.98	(4)		2.19	(4)		2.53	(4)		4
Year ended 3-31-2016		9.16		-2.29			3			1.74			2.84			2.16			2.42			14
Year ended 3-31-2015		9.58		-2.36			5			1.74			2.64			2.10			2.28			26
Year ended 3-31-2014		10.06		0.90			6			1.74			2.67			2.10			2.31			21
Year ended 3-31-2013		10.25		4.34			7			1.74			3.17			2.15			2.76			26
Year ended 3-31-2012		10.19		1.96			6			1.74			3.05			2.26			2.53			26
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		9.55		4.86			18			1.74	(4)		2.97	(4)		1.96	(4)		2.75	(4)		4
Year ended 3-31-2016		9.16		-2.39			20			1.74			2.85			1.91			2.68			14
Year ended 3-31-2015		9.59		-2.26			31			1.74			2.64			1.87			2.51			26
Year ended 3-31-2014		10.06		0.90			33			1.74			2.67			1.88			2.53			21
Year ended 3-31-2013		10.25		4.34			44			1.74			3.18			1.90			3.02			26
Year ended 3-31-2012		10.19		1.96			41			1.74			3.06			1.93			2.87			26
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		9.55		5.39			83			0.74	(4)		3.70	(4)		0.96	(4)		3.48	(4)		4
Year ended 3-31-2016		9.16		-1.39			23			0.74			3.85			0.90			3.69			14
Year ended 3-31-2015		9.59		-1.29			53			0.74			3.65			0.87			3.52			26
Year ended 3-31-2014		10.06		1.91			58			0.74			3.67			0.89			3.52			21
Year ended 3-31-2013		10.25		5.39			59			0.74			4.13			0.89			3.97			26
Year ended 3-31-2012		10.19		3.00			28			0.74			4.07			0.91			3.90			26
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		9.53		4.88			—	*		1.49	(4)		3.17	(4)		1.52	(4)		3.14	(4)		4
Year ended 3-31-2016		9.15		-2.02			—	*		1.49			3.11			1.49			3.11			14
Year ended 3-31-2015		9.57		-2.10			—	*		1.46			2.90			—			—			26
Year ended 3-31-2014		10.05		1.14			—	*		1.48			2.93			—			—			21
Year ended 3-31-2013(6)		10.24		1.30			—	*		1.45	(4)		3.10	(4)		—			—			26	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		9.55		5.27			3			0.75	(4)		3.61	(4)		0.78	(4)		3.58	(4)		4
Year ended 3-31-2016		9.17		-1.30			—	*		0.76			3.84			0.76			3.84			14
Year ended 3-31-2015(7)		9.59		-3.23			—	*		0.70	(4)		3.62	(4)		—			—			26	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		9.55		5.15			3			0.99	(4)		3.70	(4)		1.20	(4)		3.49	(4)		4
Year ended 3-31-2016		9.17		-1.54			3			0.99			3.58			1.16			3.41			14
Year ended 3-31-2015		9.59		-1.63			5			0.99			3.40			1.12			3.27			26
Year ended 3-31-2014		10.07		1.65			8			0.99			3.42			1.13			3.28			21
Year ended 3-31-2013		10.26		5.12			5			0.99			3.94			1.14			3.78			26
Year ended 3-31-2012		10.20		2.74			7			0.99			3.78			1.16			3.61			26

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 153

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL EQUITY INCOME FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		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 9-30-2016 (unaudited)	$	11.88	$	0.32	$	0.18		$	0.50		$	(0.27	)	$	—		$	(0.27	)
Year ended 3-31-2016		13.32		0.40		(1.09	)		(0.69	)		(0.39	)		(0.36	)		(0.75	)
Year ended 3-31-2015		13.27		0.39		0.36			0.75			(0.44	)		(0.26	)		(0.70	)
Year ended 3-31-2014		11.82		0.57		1.44			2.01			(0.46	)		(0.10	)		(0.56	)
Year ended 3-31-2013(5)		10.00		0.35		1.84			2.19			(0.28	)		(0.09	)		(0.37	)
Class B Shares(6)
Six-month period ended 9-30-2016 (unaudited)		11.87		0.24		0.23			0.47			(0.23	)		—			(0.23	)
Year ended 3-31-2016		13.31		0.32		(1.09	)		(0.77	)		(0.31	)		(0.36	)		(0.67	)
Year ended 3-31-2015		13.27		0.32		0.34			0.66			(0.36	)		(0.26	)		(0.62	)
Year ended 3-31-2014		11.81		0.47		1.46			1.93			(0.37	)		(0.10	)		(0.47	)
Year ended 3-31-2013(5)		10.00		0.27		1.85			2.12			(0.22	)		(0.09	)		(0.31	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		11.87		0.24		0.23			0.47			(0.23	)		—			(0.23	)
Year ended 3-31-2016		13.31		0.31		(1.08	)		(0.77	)		(0.31	)		(0.36	)		(0.67	)
Year ended 3-31-2015		13.27		0.30		0.36			0.66			(0.36	)		(0.26	)		(0.62	)
Year ended 3-31-2014		11.81		0.50		1.44			1.94			(0.38	)		(0.10	)		(0.48	)
Year ended 3-31-2013(5)		10.00		0.27		1.85			2.12			(0.22	)		(0.09	)		(0.31	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		11.88		0.23		0.30			0.53			(0.29	)		—			(0.29	)
Year ended 3-31-2016		13.33		0.45		(1.10	)		(0.65	)		(0.44	)		(0.36	)		(0.80	)
Year ended 3-31-2015		13.28		0.43		0.37			0.80			(0.49	)		(0.26	)		(0.75	)
Year ended 3-31-2014		11.82		0.61		1.46			2.07			(0.51	)		(0.10	)		(0.61	)
Year ended 3-31-2013(5)		10.00		0.37		1.85			2.22			(0.31	)		(0.09	)		(0.40	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		11.88		0.26		0.23			0.49			(0.25	)		—			(0.25	)
Year ended 3-31-2016		13.32		0.37		(1.09	)		(0.72	)		(0.36	)		(0.36	)		(0.72	)
Year ended 3-31-2015		13.28		0.36		0.35			0.71			(0.41	)		(0.26	)		(0.67	)
Year ended 3-31-2014		11.82		0.52		1.46			1.98			(0.42	)		(0.10	)		(0.52	)
Year ended 3-31-2013(7)		11.28		0.11		0.46			0.57			(0.03	)		—			(0.03	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		11.89		0.30		0.24			0.54			(0.30	)		—			(0.30	)
Year ended 3-31-2016		13.33		0.47		(1.09	)		(0.62	)		(0.46	)		(0.36	)		(0.82	)
Year ended 3-31-2015(8)		13.37		0.25		0.27			0.52			(0.30	)		(0.26	)		(0.56	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		11.87		0.28		0.24			0.52			(0.28	)		—			(0.28	)
Year ended 3-31-2016		13.32		0.42		(1.10	)		(0.68	)		(0.41	)		(0.36	)		(0.77	)
Year ended 3-31-2015		13.28		0.41		0.35			0.76			(0.46	)		(0.26	)		(0.72	)
Year ended 3-31-2014		11.82		0.58		1.46			2.04			(0.48	)		(0.10	)		(0.58	)
Year ended 3-31-2013(5)		10.00		0.34		1.86			2.20			(0.29	)		(0.09	)		(0.38	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) For the period from June 4, 2012 (commencement of operations of the class) through March 31, 2013.

(6) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(7) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(8) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(10) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

154 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	12.11		4.28	%	$	77			1.30	%(4)		5.32	%(4)		1.39	%(4)		5.23	%(4)		42	%
Year ended 3-31-2016		11.88		-5.22			248			1.30			3.19			1.36			3.13			73
Year ended 3-31-2015		13.32		5.84			253			1.30			2.94			1.38			2.86			137
Year ended 3-31-2014		13.27		17.46			184			1.30			4.51			1.48			4.33			98
Year ended 3-31-2013(5)		11.82		22.15			59			1.29	(4)		3.82	(4)		1.68	(4)		3.43	(4)		73
Class B Shares(6)
Six-month period ended 9-30-2016 (unaudited)		12.11		4.01			2			1.96	(4)		3.89	(4)		—			—			42
Year ended 3-31-2016		11.87		-5.84			2			1.94			2.56			—			—			73
Year ended 3-31-2015		13.31		5.08			2			1.98			2.40			—			—			137
Year ended 3-31-2014		13.27		16.68			2			2.04			3.73			2.05			3.72			98
Year ended 3-31-2013(5)		11.81		22.41			1			2.01	(4)		2.89	(4)		2.21	(4)		2.69	(4)		73
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		12.11		4.02			13			1.94	(4)		3.92	(4)		—			—			42
Year ended 3-31-2016		11.87		-5.83			14			1.93			2.51			—			—			73
Year ended 3-31-2015		13.31		5.10			13			1.95			2.28			—			—			137
Year ended 3-31-2014		13.27		16.75			8			1.99			3.91			2.04			3.86			98
Year ended 3-31-2013(5)		11.81		21.46			4			1.95	(4)		2.95	(4)		2.15	(4)		2.75	(4)		73
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		12.12		4.56			255			0.89	(4)		3.81	(4)		0.97	(4)		3.73	(4)		42
Year ended 3-31-2016		11.88		-4.96			20			0.94			3.57			0.95			3.56			73
Year ended 3-31-2015		13.33		6.22			22			0.94			3.21			0.98			3.17			137
Year ended 3-31-2014		13.28		17.97			15			0.94			4.86			1.06			4.74			98
Year ended 3-31-2013(5)		11.82		22.47			12			0.94	(4)		3.95	(4)		1.29	(4)		3.60	(4)		73
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		12.12		4.22			—	*		1.55	(4)		4.27	(4)		—			—			42
Year ended 3-31-2016		11.88		-5.46			—	*		1.56			2.96			—			—			73
Year ended 3-31-2015		13.32		5.47			—	*		1.58			2.75			—			—			137
Year ended 3-31-2014		13.28		17.11			—	*		1.65			4.11			1.66			4.10			98
Year ended 3-31-2013(7)		11.82		5.05			—	*		1.67	(4)		3.36	(4)		1.87	(4)		3.16	(4)		73	(9)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		12.13		4.62			1			0.81	(4)		4.94	(4)		—			—			42
Year ended 3-31-2016		11.89		-4.74			1			0.81			3.73			—			—			73
Year ended 3-31-2015(8)		13.33		4.05			1			0.83	(4)		2.94	(4)		—			—			137	(10)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		12.11		4.43			4			1.19	(4)		4.67	(4)		1.22	(4)		4.64	(4)		42
Year ended 3-31-2016		11.87		-5.15			4			1.19			3.32			1.22			3.29			73
Year ended 3-31-2015		13.32		5.88			5			1.19			3.11			1.23			3.07			137
Year ended 3-31-2014		13.28		17.68			4			1.19			4.60			1.31			4.48			98
Year ended 3-31-2013(5)		11.82		22.25			4			1.18	(4)		3.70	(4)		1.54	(4)		3.34	(4)		73

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 155

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			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 9-30-2016 (unaudited)	$	39.23	$	0.04		$	1.18		$	1.22		$	—		$	—		$	—
Year ended 3-31-2016		42.75		(0.09	)		(2.49	)		(2.58	)		(0.04	)		(0.90	)		(0.94	)
Year ended 3-31-2015		41.15		0.19			1.95			2.14			(0.03	)		(0.51	)		(0.54	)
Year ended 3-31-2014		35.50		0.19			5.92			6.11			(0.46	)		—			(0.46	)
Year ended 3-31-2013		33.45		0.27			2.07			2.34			(0.29	)		—			(0.29	)
Year ended 3-31-2012		33.23		0.26			(0.04	)		0.22			—			—			—
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		34.07		(0.22	)		1.08			0.86			—			—			—
Year ended 3-31-2016		37.61		(0.44	)		(2.20	)		(2.64	)		—			(0.90	)		(0.90	)
Year ended 3-31-2015		36.59		(0.15	)		1.68			1.53			—			(0.51	)		(0.51	)
Year ended 3-31-2014		31.63		(0.16	)		5.25			5.09			(0.13	)		—			(0.13	)
Year ended 3-31-2013		29.88		(0.05	)		1.84			1.79			(0.04	)		—			(0.04	)
Year ended 3-31-2012		29.99		(0.04	)		(0.07	)		(0.11	)		—			—			—
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		34.26		(0.15	)		1.08			0.93			—			—			—
Year ended 3-31-2016		37.68		(0.34	)		(2.18	)		(2.52	)		—			(0.90	)		(0.90	)
Year ended 3-31-2015		36.57		(0.09	)		1.71			1.62			—			(0.51	)		(0.51	)
Year ended 3-31-2014		31.61		(0.08	)		5.22			5.14			(0.18	)		—			(0.18	)
Year ended 3-31-2013		29.85		(0.02	)		1.83			1.81			(0.05	)		—			(0.05	)
Year ended 3-31-2012		29.93		(0.02	)		(0.06	)		(0.08	)		—			—			—
Class E Shares(6)
Six-month period ended 9-30-2016 (unaudited)		39.38		0.03			1.25			1.28			—			—			—
Year ended 3-31-2016		42.83		0.02			(2.50	)		(2.48	)		(0.07	)		(0.90	)		(0.97	)
Year ended 3-31-2015		41.19		0.31			1.94			2.25			(0.10	)		(0.51	)		(0.61	)
Year ended 3-31-2014		35.53		0.32			5.89			6.21			(0.55	)		—			(0.55	)
Year ended 3-31-2013		33.52		0.35			2.07			2.42			(0.41	)		—			(0.41	)
Year ended 3-31-2012		33.22		0.33			(0.03	)		0.30			—			—			—
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		39.81		(0.03	)		1.34			1.31			—			—			—
Year ended 3-31-2016		43.24		0.05			(2.49	)		(2.44	)		(0.09	)		(0.90	)		(0.99	)
Year ended 3-31-2015		41.57		0.35			1.96			2.31			(0.13	)		(0.51	)		(0.64	)
Year ended 3-31-2014		35.85		0.40			5.92			6.32			(0.60	)		—			(0.60	)
Year ended 3-31-2013		33.84		0.33			2.16			2.49			(0.48	)		—			(0.48	)
Year ended 3-31-2012		33.50		0.37			(0.03	)		0.34			—			—			—
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		39.08		(0.07	)		1.24			1.17			—			—			—
Year ended 3-31-2016		42.64		(0.20	)		(2.46	)		(2.66	)		—			(0.90	)		(0.90	)
Year ended 3-31-2015		41.11		0.01			2.03			2.04			—			(0.51	)		(0.51	)
Year ended 3-31-2014		35.48		0.13			5.88			6.01			(0.38	)		—			(0.38	)
Year ended 3-31-2013(7)		34.77		0.01			0.70			0.71			—			—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		39.92		0.00	*		1.34			1.34			—			—			—
Year ended 3-31-2016		43.32		0.13			(2.52	)		(2.39	)		(0.11	)		(0.90	)		(1.01	)
Year ended 3-31-2015(8)		42.56		0.15			1.22			1.37			(0.10	)		(0.51	)		(0.61	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		39.37		0.00	*		1.24			1.24			—			—			—
Year ended 3-31-2016		42.86		(0.05	)		(2.49	)		(2.54	)		(0.05	)		(0.90	)		(0.95	)
Year ended 3-31-2015		41.23		0.24			1.96			2.20			(0.06	)		(0.51	)		(0.57	)
Year ended 3-31-2014		35.57		0.30			5.87			6.17			(0.51	)		—			(0.51	)
Year ended 3-31-2013		33.54		0.27			2.10			2.37			(0.34	)		—			(0.34	)
Year ended 3-31-2012		33.28		0.29			(0.03	)		0.26			—			—			—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) Class share is closed to investment.

(7) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(8) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(10) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

156 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	40.45		3.11	%	$	121			1.49	%(4)		0.19	%(4)		—	%		—	%		25	%
Year ended 3-31-2016		39.23		-6.12			375			1.47			-0.22			—			—			51
Year ended 3-31-2015		42.75		5.26			409			1.45			0.47			—			—			61
Year ended 3-31-2014		41.15		17.26			340			1.49			0.50			—			—			46
Year ended 3-31-2013		35.50		7.04			198			1.48			0.80			—			—			40
Year ended 3-31-2012		33.45		0.66			151			1.52			0.81			—			—			49
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		34.93		2.52			2			2.66	(4)		-1.29	(4)		—			—			25
Year ended 3-31-2016		34.07		-7.12			3			2.52			-1.22			—			—			51
Year ended 3-31-2015		37.61		4.25			4			2.43			-0.40			—			—			61
Year ended 3-31-2014		36.59		16.13			5			2.47			-0.46			—			—			46
Year ended 3-31-2013		31.63		5.95			4			2.47			-0.16			—			—			40
Year ended 3-31-2012		29.88		-0.34			3			2.55			-0.16			—			—			49
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		35.19		2.72			25			2.21	(4)		-0.87	(4)		—			—			25
Year ended 3-31-2016		34.26		-6.79			25			2.22			-0.96			—			—			51
Year ended 3-31-2015		37.68		4.51			26			2.21			-0.25			—			—			61
Year ended 3-31-2014		36.57		16.30			28			2.31			-0.23			—			—			46
Year ended 3-31-2013		31.61		6.03			24			2.39			-0.07			—			—			40
Year ended 3-31-2012		29.85		-0.24			25			2.46			-0.09			—			—			49
Class E Shares(6)
Six-month period ended 9-30-2016 (unaudited)		40.66		3.25			—	*		1.20	(4)		0.14	(4)		—			—			25
Year ended 3-31-2016		39.38		-5.87			—	*		1.20			0.05			—			—			51
Year ended 3-31-2015		42.83		5.55			—	*		1.21			0.74			—			—			61
Year ended 3-31-2014		41.19		17.58			—	*		1.22			0.84			—			—			46
Year ended 3-31-2013		35.53		7.27			—	*		1.25			1.04			—			—			40
Year ended 3-31-2012		33.52		0.90			—	*		1.29			1.04			—			—			49
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		41.12		3.29			309			1.12	(4)		-0.15	(4)		—			—			25
Year ended 3-31-2016		39.81		-5.73			78			1.09			0.13			—			—			51
Year ended 3-31-2015		43.24		5.66			77			1.09			0.84			—			—			61
Year ended 3-31-2014		41.57		17.73			66			1.11			1.02			—			—			46
Year ended 3-31-2013		35.85		7.38			48			1.13			0.96			—			—			40
Year ended 3-31-2012		33.84		1.05			24			1.17			1.14			—			—			49
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		40.25		3.00			3			1.69	(4)		-0.36	(4)		—			—			25
Year ended 3-31-2016		39.08		-6.32			2			1.68			-0.50			—			—			51
Year ended 3-31-2015		42.64		5.03			1			1.69			0.02			—			—			61
Year ended 3-31-2014		41.11		17.01			—	*		1.70			0.33			—			—			46
Year ended 3-31-2013(7)		35.48		2.04			—	*		1.70	(4)		0.15	(4)		—			—			40	(9)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		41.26		3.36			8			0.95	(4)		0.02	(4)		—			—			25
Year ended 3-31-2016		39.92		-5.61			3			0.94			0.31			—			—			51
Year ended 3-31-2015(8)		43.32		3.31			3			0.95	(4)		0.55	(4)		—			—			61	(10)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		40.61		3.15			15			1.35	(4)		-0.02	(4)		—			—			25
Year ended 3-31-2016		39.37		-6.00			17			1.36			-0.13			—			—			51
Year ended 3-31-2015		42.86		5.40			11			1.35			0.57			—			—			61
Year ended 3-31-2014		41.23		17.38			11			1.38			0.79			—			—			46
Year ended 3-31-2013		35.57		7.14			13			1.39			0.81			—			—			40
Year ended 3-31-2012		33.54		0.78			11			1.40			0.93			1.42			0.91			49

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 157

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL INCOME ALLOCATION FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		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 9-30-2016 (unaudited)	$	13.96	$	0.37	$	0.41		$	0.78		$	(0.33	)	$	—	$	(0.33	)
Year ended 3-31-2016		15.42		0.59		(1.46	)		(0.87	)		(0.59	)		—		(0.59	)
Year ended 3-31-2015		15.58		0.62		(0.18	)		0.44			(0.60	)		—		(0.60	)
Year ended 3-31-2014		14.79		0.68		0.70			1.38			(0.59	)		—		(0.59	)
Year ended 3-31-2013		14.52		0.62		0.33			0.95			(0.68	)		—		(0.68	)
Year ended 3-31-2012		15.19		0.57		(0.57	)		0.00			(0.67	)		—		(0.67	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		13.72		0.29		0.40			0.69			(0.27	)		—		(0.27	)
Year ended 3-31-2016		15.15		0.46		(1.43	)		(0.97	)		(0.46	)		—		(0.46	)
Year ended 3-31-2015		15.32		0.48		(0.18	)		0.30			(0.47	)		—		(0.47	)
Year ended 3-31-2014		14.55		0.52		0.70			1.22			(0.45	)		—		(0.45	)
Year ended 3-31-2013		14.29		0.48		0.32			0.80			(0.54	)		—		(0.54	)
Year ended 3-31-2012		14.93		0.43		(0.57	)		(0.14	)		(0.50	)		—		(0.50	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		13.80		0.31		0.41			0.72			(0.28	)		—		(0.28	)
Year ended 3-31-2016		15.24		0.49		(1.43	)		(0.94	)		(0.50	)		—		(0.50	)
Year ended 3-31-2015		15.41		0.51		(0.18	)		0.33			(0.50	)		—		(0.50	)
Year ended 3-31-2014		14.64		0.57		0.70			1.27			(0.50	)		—		(0.50	)
Year ended 3-31-2013		14.38		0.52		0.32			0.84			(0.58	)		—		(0.58	)
Year ended 3-31-2012		15.02		0.49		(0.58	)		(0.09	)		(0.55	)		—		(0.55	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		13.97		0.35		0.42			0.77			(0.33	)		—		(0.33	)
Year ended 3-31-2016		15.42		0.58		(1.45	)		(0.87	)		(0.58	)		—		(0.58	)
Year ended 3-31-2015		15.58		0.62		(0.19	)		0.43			(0.59	)		—		(0.59	)
Year ended 3-31-2014		14.79		0.68		0.70			1.38			(0.59	)		—		(0.59	)
Year ended 3-31-2013		14.52		0.62		0.33			0.95			(0.68	)		—		(0.68	)
Year ended 3-31-2012		15.20		0.59		(0.58	)		0.01			(0.69	)		—		(0.69	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		14.08		0.36		0.45			0.81			(0.36	)		—		(0.36	)
Year ended 3-31-2016		15.54		0.64		(1.46	)		(0.82	)		(0.64	)		—		(0.64	)
Year ended 3-31-2015		15.70		0.67		(0.17	)		0.50			(0.66	)		—		(0.66	)
Year ended 3-31-2014		14.90		0.74		0.71			1.45			(0.65	)		—		(0.65	)
Year ended 3-31-2013		14.62		0.70		0.32			1.02			(0.74	)		—		(0.74	)
Year ended 3-31-2012		15.31		0.64		(0.58	)		0.06			(0.75	)		—		(0.75	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		13.96		0.34		0.41			0.75			(0.31	)		—		(0.31	)
Year ended 3-31-2016		15.41		0.56		(1.46	)		(0.90	)		(0.55	)		—		(0.55	)
Year ended 3-31-2015		15.57		0.59		(0.18	)		0.41			(0.57	)		—		(0.57	)
Year ended 3-31-2014		14.79		0.64		0.70			1.34			(0.56	)		—		(0.56	)
Year ended 3-31-2013(6)		14.37		0.15		0.32			0.47			(0.05	)		—		(0.05	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		14.09		0.40		0.42			0.82			(0.37	)		—		(0.37	)
Year ended 3-31-2016		15.55		0.67		(1.47	)		(0.80	)		(0.66	)		—		(0.66	)
Year ended 3-31-2015(7)		15.95		0.45		(0.40	)		0.05			(0.45	)		—		(0.45	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		14.02		0.37		0.42			0.79			(0.34	)		—		(0.34	)
Year ended 3-31-2016		15.48		0.63		(1.49	)		(0.86	)		(0.60	)		—		(0.60	)
Year ended 3-31-2015		15.64		0.67		(0.21	)		0.46			(0.62	)		—		(0.62	)
Year ended 3-31-2014		14.85		0.71		0.70			1.41			(0.62	)		—		(0.62	)
Year ended 3-31-2013		14.57		0.62		0.36			0.98			(0.70	)		—		(0.70	)
Year ended 3-31-2012		15.25		0.59		(0.57	)		0.02			(0.70	)		—		(0.70	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

158 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	14.41		5.66	%	$	225			1.29	%(4)		5.27	%(4)		—	%		—	%		35	%
Year ended 3-31-2016		13.96		-5.74			623			1.28			4.09			—			—			53
Year ended 3-31-2015		15.42		2.87			653			1.29			4.00			—			—			69
Year ended 3-31-2014		15.58		9.60			494			1.35			4.52			1.35			4.52			92
Year ended 3-31-2013		14.79		6.84			308			1.35			4.38			1.51			4.22			109
Year ended 3-31-2012		14.52		0.23			228			1.44			3.94			—			—			61
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		14.14		5.10			4			2.17	(4)		4.12	(4)		—			—			35
Year ended 3-31-2016		13.72		-6.51			4			2.17			3.24			—			—			53
Year ended 3-31-2015		15.15		1.95			5			2.18			3.12			—			—			69
Year ended 3-31-2014		15.32		8.53			6			2.27			3.54			—			—			92
Year ended 3-31-2013		14.55		5.90			7			2.31			3.48			2.54			3.25			109
Year ended 3-31-2012		14.29		-0.75			7			2.41			3.05			—			—			61
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		14.24		5.31			52			1.90	(4)		4.39	(4)		—			—			35
Year ended 3-31-2016		13.80		-6.26			52			1.90			3.45			—			—			53
Year ended 3-31-2015		15.24		2.18			50			1.91			3.34			—			—			69
Year ended 3-31-2014		15.41		8.86			28			1.99			3.82			1.99			3.82			92
Year ended 3-31-2013		14.64		6.13			25			2.02			3.70			2.12			3.60			109
Year ended 3-31-2012		14.38		-0.41			19			2.10			3.41			—			—			61
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		14.41		5.57			3			1.33	(4)		4.94	(4)		1.60	(4)		4.67	(4)		35
Year ended 3-31-2016		13.97		-5.73			3			1.33			4.03			1.60			3.76			53
Year ended 3-31-2015		15.42		2.82			3			1.33			3.97			1.61			3.69			69
Year ended 3-31-2014		15.58		9.56			3			1.33			4.51			1.70			4.14			92
Year ended 3-31-2013		14.79		6.94			2			1.33			4.42			2.03			3.72			109
Year ended 3-31-2012		14.52		0.30			2			1.33			4.07			1.90			3.50			61
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		14.53		5.81			453			0.95	(4)		4.90	(4)		—			—			35
Year ended 3-31-2016		14.08		-5.35			62			0.92			4.39			—			—			53
Year ended 3-31-2015		15.54		3.22			48			0.92			4.28			—			—			69
Year ended 3-31-2014		15.70		10.07			39			0.93			4.90			0.94			4.89			92
Year ended 3-31-2013		14.90		7.33			30			0.91			4.98			1.03			4.86			109
Year ended 3-31-2012		14.62		0.67			43			0.99			4.39			—			—			61
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		14.40		5.46			—	*		1.53	(4)		4.74	(4)		—			—			35
Year ended 3-31-2016		13.96		-5.90			—	*		1.52			3.87			—			—			53
Year ended 3-31-2015		15.41		2.64			—	*		1.51			3.80			—			—			69
Year ended 3-31-2014		15.57		9.32			—	*		1.55			4.28			—			—			92
Year ended 3-31-2013(6)		14.79		3.30			—	*		1.52	(4)		3.73	(4)		1.53	(4)		3.72	(4)		109	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		14.54		5.88			2			0.78	(4)		5.51	(4)		—			—			35
Year ended 3-31-2016		14.09		-5.21			2			0.78			4.58			—			—			53
Year ended 3-31-2015(7)		15.55		0.36			2			0.78	(4)		4.40	(4)		—			—			69	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		14.47		5.70			1			1.17	(4)		5.19	(4)		1.19	(4)		5.17	(4)		35
Year ended 3-31-2016		14.02		-5.61			2			1.17			4.28			1.18			4.27			53
Year ended 3-31-2015		15.48		2.97			3			1.17			4.29			1.18			4.28			69
Year ended 3-31-2014		15.64		9.77			7			1.17			4.68			1.19			4.66			92
Year ended 3-31-2013		14.85		7.08			5			1.17			4.40			1.29			4.28			109
Year ended 3-31-2012		14.57		0.38			4			1.26			4.12			—			—			61

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 159

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(1)		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 9-30-2016 (unaudited)	$	6.91	$	0.28	$	0.47		$	0.75		$	(0.28	)	$	—		$	(0.28	)
Year ended 3-31-2016		8.09		0.58		(1.19	)		(0.61	)		(0.57	)		—			(0.57	)
Year ended 3-31-2015		8.75		0.57		(0.52	)		0.05			(0.57	)		(0.14	)		(0.71	)
Year ended 3-31-2014		8.72		0.58		0.18			0.76			(0.60	)		(0.13	)		(0.73	)
Year ended 3-31-2013		8.30		0.63		0.52			1.15			(0.63	)		(0.10	)		(0.73	)
Year ended 3-31-2012		8.46		0.64		0.02			0.66			(0.65	)		(0.17	)		(0.82	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		6.91		0.25		0.48			0.73			(0.26	)		—			(0.26	)
Year ended 3-31-2016		8.09		0.53		(1.19	)		(0.66	)		(0.52	)		—			(0.52	)
Year ended 3-31-2015		8.75		0.51		(0.52	)		(0.01	)		(0.51	)		(0.14	)		(0.65	)
Year ended 3-31-2014		8.72		0.52		0.17			0.69			(0.53	)		(0.13	)		(0.66	)
Year ended 3-31-2013		8.30		0.57		0.52			1.09			(0.57	)		(0.10	)		(0.67	)
Year ended 3-31-2012		8.46		0.58		0.02			0.60			(0.59	)		(0.17	)		(0.76	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		6.91		0.26		0.47			0.73			(0.26	)		—			(0.26	)
Year ended 3-31-2016		8.09		0.53		(1.19	)		(0.66	)		(0.52	)		—			(0.52	)
Year ended 3-31-2015		8.75		0.51		(0.52	)		(0.01	)		(0.51	)		(0.14	)		(0.65	)
Year ended 3-31-2014		8.72		0.52		0.18			0.70			(0.54	)		(0.13	)		(0.67	)
Year ended 3-31-2013		8.30		0.57		0.52			1.09			(0.57	)		(0.10	)		(0.67	)
Year ended 3-31-2012		8.46		0.58		0.03			0.61			(0.60	)		(0.17	)		(0.77	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		6.91		0.27		0.47			0.74			(0.27	)		—			(0.27	)
Year ended 3-31-2016		8.09		0.56		(1.19	)		(0.63	)		(0.55	)		—			(0.55	)
Year ended 3-31-2015		8.75		0.54		(0.51	)		0.03			(0.55	)		(0.14	)		(0.69	)
Year ended 3-31-2014		8.72		0.55		0.17			0.72			(0.56	)		(0.13	)		(0.69	)
Year ended 3-31-2013		8.30		0.59		0.52			1.11			(0.59	)		(0.10	)		(0.69	)
Year ended 3-31-2012		8.46		0.62		0.01			0.63			(0.62	)		(0.17	)		(0.79	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		6.91		0.29		0.47			0.76			(0.29	)		—			(0.29	)
Year ended 3-31-2016		8.09		0.60		(1.19	)		(0.59	)		(0.59	)		—			(0.59	)
Year ended 3-31-2015		8.75		0.59		(0.52	)		0.07			(0.59	)		(0.14	)		(0.73	)
Year ended 3-31-2014		8.72		0.60		0.18			0.78			(0.62	)		(0.13	)		(0.75	)
Year ended 3-31-2013		8.30		0.65		0.52			1.17			(0.65	)		(0.10	)		(0.75	)
Year ended 3-31-2012		8.46		0.66		0.03			0.69			(0.68	)		(0.17	)		(0.85	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		6.91		0.27		0.47			0.74			(0.27	)		—			(0.27	)
Year ended 3-31-2016		8.09		0.55		(1.19	)		(0.64	)		(0.54	)		—			(0.54	)
Year ended 3-31-2015		8.75		0.54		(0.52	)		0.02			(0.54	)		(0.14	)		(0.68	)
Year ended 3-31-2014		8.72		0.52		0.21			0.73			(0.57	)		(0.13	)		(0.70	)
Year ended 3-31-2013(6)		8.54		0.16		0.17			0.33			(0.15	)		—			(0.15	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		6.91		0.30		0.47			0.77			(0.30	)		—			(0.30	)
Year ended 3-31-2016		8.09		0.60		(1.18	)		(0.58	)		(0.60	)		—			(0.60	)
Year ended 3-31-2015(7)		8.63		0.40		(0.40	)		0.00	*		(0.40	)		(0.14	)		(0.54	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		6.91		0.28		0.47			0.75			(0.28	)		—			(0.28	)
Year ended 3-31-2016		8.09		0.58		(1.19	)		(0.61	)		(0.57	)		—			(0.57	)
Year ended 3-31-2015		8.75		0.57		(0.52	)		0.05			(0.57	)		(0.14	)		(0.71	)
Year ended 3-31-2014		8.72		0.58		0.18			0.76			(0.60	)		(0.13	)		(0.73	)
Year ended 3-31-2013		8.30		0.63		0.52			1.15			(0.63	)		(0.10	)		(0.73	)
Year ended 3-31-2012		8.46		0.64		0.03			0.67			(0.66	)		(0.17	)		(0.83	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

160 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	7.38		11.04	%	$	1,421			0.98	%(4)		7.79	%(4)		—	%		—	%		19	%
Year ended 3-31-2016		6.91		-7.75			1,865			0.96			7.71			—			—			29
Year ended 3-31-2015		8.09		0.62			2,920			0.94			6.70			—			—			44
Year ended 3-31-2014		8.75		9.09			4,151			0.93			6.68			—			—			75
Year ended 3-31-2013		8.72		14.50			3,080			0.93			7.42			—			—			68
Year ended 3-31-2012		8.30		8.47			1,847			1.00			7.87			—			—			80
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		7.38		10.63			83			1.72	(4)		7.04	(4)		—			—			19
Year ended 3-31-2016		6.91		-8.43			84			1.70			6.98			—			—			29
Year ended 3-31-2015		8.09		-0.13			133			1.67			5.98			—			—			44
Year ended 3-31-2014		8.75		8.28			165			1.68			5.96			—			—			75
Year ended 3-31-2013		8.72		13.64			152			1.69			6.65			—			—			68
Year ended 3-31-2012		8.30		7.63			90			1.79			7.10			—			—			80
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		7.38		10.65			1,016			1.67	(4)		7.08	(4)		—			—			19
Year ended 3-31-2016		6.91		-8.40			1,025			1.66			7.02			—			—			29
Year ended 3-31-2015		8.09		-0.07			1,618			1.64			6.02			—			—			44
Year ended 3-31-2014		8.75		8.32			1,919			1.64			5.98			—			—			75
Year ended 3-31-2013		8.72		13.71			1,501			1.64			6.70			—			—			68
Year ended 3-31-2012		8.30		7.73			850			1.70			7.16			—			—			80
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		7.38		10.93			9			1.19	(4)		7.56	(4)		1.30	(4)		7.45	(4)		19
Year ended 3-31-2016		6.91		-8.01			8			1.23			7.47			1.30			7.40			29
Year ended 3-31-2015		8.09		0.30			10			1.26			6.42			—			—			44
Year ended 3-31-2014		8.75		8.69			10			1.27			6.34			—			—			75
Year ended 3-31-2013		8.72		13.96			8			1.36			6.99			1.38			6.97			68
Year ended 3-31-2012		8.30		8.08			5			1.36			7.55			1.45			7.47			80
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		7.38		11.18			1,698			0.72	(4)		8.01	(4)		—			—			19
Year ended 3-31-2016		6.91		-7.52			1,266			0.70			7.94			—			—			29
Year ended 3-31-2015		8.09		0.88			2,523			0.69			6.91			—			—			44
Year ended 3-31-2014		8.75		9.36			4,075			0.69			6.90			—			—			75
Year ended 3-31-2013		8.72		14.77			2,513			0.70			7.64			—			—			68
Year ended 3-31-2012		8.30		8.78			1,255			0.73			8.07			—			—			80
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		7.38		10.86			68			1.31	(4)		7.44	(4)		—			—			19
Year ended 3-31-2016		6.91		-8.07			62			1.30			7.44			—			—			29
Year ended 3-31-2015		8.09		0.31			58			1.29			6.45			—			—			44
Year ended 3-31-2014		8.75		8.71			30			1.28			6.00			—			—			75
Year ended 3-31-2013(6)		8.72		3.94			—	*		1.27	(4)		6.61	(4)		—			—			68	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		7.38		11.30			45			0.56	(4)		8.20	(4)		—			—			19
Year ended 3-31-2016		6.91		-7.35			55			0.56			8.36			—			—			29
Year ended 3-31-2015(7)		8.09		0.13			13			0.54	(4)		7.47	(4)		—			—			44	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		7.38		11.05			399			0.96	(4)		7.80	(4)		—			—			19
Year ended 3-31-2016		6.91		-7.76			406			0.95			7.69			0.95			7.69			29
Year ended 3-31-2015		8.09		0.64			740			0.94			6.69			0.95			6.68			44
Year ended 3-31-2014		8.75		9.09			1,129			0.93			6.67			0.94			6.66			75
Year ended 3-31-2013		8.72		14.50			835			0.93			7.41			0.95			7.39			68
Year ended 3-31-2012		8.30		8.51			464			0.99			7.84			—			—			80

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 161

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(1)		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 9-30-2016 (unaudited)	$	15.97	$	0.21	$	0.72		$	0.93		$	—		$	—		$	—
Year ended 3-31-2016		17.88		0.20		(1.97	)		(1.77	)		(0.14	)		—			(0.14	)
Year ended 3-31-2015		19.04		0.19		0.67			0.86			(0.23	)		(1.79	)		(2.02	)
Year ended 3-31-2014		15.98		0.18		3.24			3.42			(0.35	)		(0.01	)		(0.36	)
Year ended 3-31-2013		15.26		0.21		0.73			0.94			(0.22	)		—			(0.22	)
Year ended 3-31-2012		17.14		0.27		(1.66	)		(1.39	)		(0.27	)		(0.22	)		(0.49	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		14.24		0.09		0.66			0.75			—			—			—
Year ended 3-31-2016		15.97		0.05		(1.76	)		(1.71	)		(0.02	)		—			(0.02	)
Year ended 3-31-2015		17.23		0.03		0.59			0.62			(0.09	)		(1.79	)		(1.88	)
Year ended 3-31-2014		14.49		0.04		2.93			2.97			(0.22	)		(0.01	)		(0.23	)
Year ended 3-31-2013		13.86		0.07		0.66			0.73			(0.10	)		—			(0.10	)
Year ended 3-31-2012		15.64		0.14		(1.53	)		(1.39	)		(0.17	)		(0.22	)		(0.39	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		14.27		0.11		0.67			0.78			—			—			—
Year ended 3-31-2016		16.00		0.06		(1.75	)		(1.69	)		(0.04	)		—			(0.04	)
Year ended 3-31-2015		17.25		0.05		0.61			0.66			(0.12	)		(1.79	)		(1.91	)
Year ended 3-31-2014		14.51		0.07		2.93			3.00			(0.25	)		(0.01	)		(0.26	)
Year ended 3-31-2013		13.88		0.11		0.65			0.76			(0.13	)		—			(0.13	)
Year ended 3-31-2012		15.65		0.17		(1.53	)		(1.36	)		(0.19	)		(0.22	)		(0.41	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		16.08		0.17		0.75			0.92			—			—			—
Year ended 3-31-2016		17.99		0.17		(1.97	)		(1.80	)		(0.11	)		—			(0.11	)
Year ended 3-31-2015		19.14		0.16		0.68			0.84			(0.20	)		(1.79	)		(1.99	)
Year ended 3-31-2014		16.07		0.16		3.25			3.41			(0.33	)		(0.01	)		(0.34	)
Year ended 3-31-2013		15.33		0.20		0.75			0.95			(0.21	)		—			(0.21	)
Year ended 3-31-2012		17.21		0.27		(1.67	)		(1.40	)		(0.26	)		(0.22	)		(0.48	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		16.07		0.18		0.77			0.95			—			—			—
Year ended 3-31-2016		17.99		0.24		(1.97	)		(1.73	)		(0.19	)		—			(0.19	)
Year ended 3-31-2015		19.15		0.25		0.68			0.93			(0.30	)		(1.79	)		(2.09	)
Year ended 3-31-2014		16.07		0.25		3.25			3.50			(0.41	)		(0.01	)		(0.42	)
Year ended 3-31-2013		15.33		0.27		0.75			1.02			(0.28	)		—			(0.28	)
Year ended 3-31-2012		17.22		0.32		(1.66	)		(1.34	)		(0.33	)		(0.22	)		(0.55	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		15.97		0.15		0.75			0.90			—			—			—
Year ended 3-31-2016		17.87		0.13		(1.94	)		(1.81	)		(0.09	)		—			(0.09	)
Year ended 3-31-2015		19.03		0.10		0.71			0.81			(0.18	)		(1.79	)		(1.97	)
Year ended 3-31-2014		15.98		0.11		3.26			3.37			(0.31	)		(0.01	)		(0.32	)
Year ended 3-31-2013(6)		15.40		0.04		0.54			0.58			—			—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		16.11		0.21		0.76			0.97			—			—			—
Year ended 3-31-2016		18.04		0.23		(1.94	)		(1.71	)		(0.22	)		—			(0.22	)
Year ended 3-31-2015(7)		20.09		0.13		(0.12	)		0.01			(0.27	)		(1.79	)		(2.06	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		16.08		0.18		0.75			0.93			—			—			—
Year ended 3-31-2016		18.00		0.21		(1.98	)		(1.77	)		(0.15	)		—			(0.15	)
Year ended 3-31-2015		19.16		0.18		0.70			0.88			(0.25	)		(1.79	)		(2.04	)
Year ended 3-31-2014		16.08		0.21		3.25			3.46			(0.37	)		(0.01	)		(0.38	)
Year ended 3-31-2013		15.35		0.24		0.73			0.97			(0.24	)		—			(0.24	)
Year ended 3-31-2012		17.23		0.29		(1.66	)		(1.37	)		(0.29	)		(0.22	)		(0.51	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

162 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	16.90		5.82	%	$	757			1.30	%(4)		2.61	%(4)		—	%		—	%		34	%
Year ended 3-31-2016		15.97		-9.95			1,532			1.31			1.15			—			—			62
Year ended 3-31-2015		17.88		4.98			1,383			1.35			0.99			—			—			87
Year ended 3-31-2014		19.04		21.42			1,028			1.40			1.01			—			—			87
Year ended 3-31-2013		15.98		6.30			694			1.46			1.43			—			—			81
Year ended 3-31-2012		15.26		-7.86			717			1.49			1.75			—			—			88
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		14.99		5.27			9			2.23	(4)		1.24	(4)		—			—			34
Year ended 3-31-2016		14.24		-10.70			10			2.20			0.31			—			—			62
Year ended 3-31-2015		15.97		4.02			13			2.20			0.17			—			—			87
Year ended 3-31-2014		17.23		20.47			13			2.22			0.26			—			—			87
Year ended 3-31-2013		14.49		5.37			12			2.35			0.56			—			—			81
Year ended 3-31-2012		13.86		-8.68			15			2.36			1.02			—			—			88
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		15.05		5.47			238			1.97	(4)		1.50	(4)		—			—			34
Year ended 3-31-2016		14.27		-10.54			253			1.98			0.40			—			—			62
Year ended 3-31-2015		16.00		4.25			168			2.02			0.32			—			—			87
Year ended 3-31-2014		17.25		20.64			117			2.07			0.40			—			—			87
Year ended 3-31-2013		14.51		5.61			98			2.10			0.81			—			—			81
Year ended 3-31-2012		13.88		-8.45			113			2.13			1.18			—			—			88
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		17.00		5.72			5			1.37	(4)		2.08	(4)		1.70	(4)		1.75	(4)		34
Year ended 3-31-2016		16.08		-10.05			5			1.45			1.01			1.69			0.77			62
Year ended 3-31-2015		17.99		4.82			5			1.53			0.84			1.74			0.63			87
Year ended 3-31-2014		19.14		21.32			4			1.53			0.90			1.85			0.58			87
Year ended 3-31-2013		16.07		6.27			3			1.52			1.36			2.05			0.83			81
Year ended 3-31-2012		15.33		-7.88			3			1.53			1.74			2.09			1.18			88
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		17.02		5.91			2,717			0.97	(4)		2.25	(4)		—			—			34
Year ended 3-31-2016		16.07		-9.63			1,885			0.98			1.44			—			—			62
Year ended 3-31-2015		17.99		5.32			1,347			1.02			1.30			—			—			87
Year ended 3-31-2014		19.15		21.93			802			1.04			1.39			—			—			87
Year ended 3-31-2013		16.07		6.75			572			1.05			1.80			—			—			81
Year ended 3-31-2012		15.33		-7.47			505			1.07			2.07			—			—			88
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		16.87		5.63			45			1.56	(4)		1.81	(4)		—			—			34
Year ended 3-31-2016		15.97		-10.15			36			1.58			0.80			—			—			62
Year ended 3-31-2015		17.87		4.70			19			1.61			0.54			—			—			87
Year ended 3-31-2014		19.03		21.19			5			1.64			0.61			—			—			87
Year ended 3-31-2013(6)		15.98		3.77			—	*		1.62	(4)		0.96	(4)		—			—			81	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		17.08		6.02			371			0.82	(4)		2.52	(4)		—			—			34
Year ended 3-31-2016		16.11		-9.52			289			0.83			1.40			—			—			62
Year ended 3-31-2015(7)		18.04		0.48			21			0.86	(4)		1.10	(4)		—			—			87	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		17.01		5.78			393			1.23	(4)		2.25	(4)		—			—			34
Year ended 3-31-2016		16.08		-9.88			572			1.25			1.24			—			—			62
Year ended 3-31-2015		18.00		5.04			526			1.27			0.95			—			—			87
Year ended 3-31-2014		19.16		21.63			153			1.29			1.20			—			—			87
Year ended 3-31-2013		16.08		6.42			148			1.31			1.62			—			—			81
Year ended 3-31-2012		15.35		-7.67			165			1.33			1.88			—			—			88

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 163

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)(1)			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 9-30-2016 (unaudited)	$	17.66	$	0.00	*	$	1.08		$	1.08		$	—		$	—		$	—
Year ended 3-31-2016		19.19		(0.03	)		(0.32	)		(0.35	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		17.59		(0.04	)		3.03			2.99			—			(1.39	)		(1.39	)
Year ended 3-31-2014		15.87		0.01			3.75			3.76			—			(2.04	)		(2.04	)
Year ended 3-31-2013		15.14		0.03			0.73			0.76			(0.03	)		—			(0.03	)
Year ended 3-31-2012		13.61		(0.01	)		1.54			1.53			—			—			—
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		14.22		(0.07	)		0.87			0.80			—			—			—
Year ended 3-31-2016		15.82		(0.16	)		(0.26	)		(0.42	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		14.84		(0.16	)		2.53			2.37			—			(1.39	)		(1.39	)
Year ended 3-31-2014		13.73		(0.12	)		3.21			3.09			—			(1.98	)		(1.98	)
Year ended 3-31-2013		13.20		(0.10	)		0.63			0.53			—			—			—
Year ended 3-31-2012		11.99		(0.13	)		1.34			1.21			—			—			—
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		15.19		(0.06	)		0.93			0.87			—			—			—
Year ended 3-31-2016		16.78		(0.14	)		(0.27	)		(0.41	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		15.64		(0.15	)		2.68			2.53			—			(1.39	)		(1.39	)
Year ended 3-31-2014		14.36		(0.11	)		3.37			3.26			—			(1.98	)		(1.98	)
Year ended 3-31-2013		13.78		(0.08	)		0.66			0.58			—			—			—
Year ended 3-31-2012		12.49		(0.11	)		1.40			1.29			—			—			—
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		17.64		0.00	*		1.08			1.08			—			—			—
Year ended 3-31-2016		19.17		(0.03	)		(0.32	)		(0.35	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		17.57		(0.04	)		3.03			2.99			—			(1.39	)		(1.39	)
Year ended 3-31-2014		15.86		0.01			3.74			3.75			—			(2.04	)		(2.04	)
Year ended 3-31-2013		15.13		0.03			0.73			0.76			(0.03	)		—			(0.03	)
Year ended 3-31-2012		13.60		(0.01	)		1.54			1.53			—			—			—
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		18.41		0.02			1.13			1.15			—			—			—
Year ended 3-31-2016		19.90		0.02			(0.33	)		(0.31	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		18.15		0.01			3.13			3.14			—			(1.39	)		(1.39	)
Year ended 3-31-2014		16.31		0.06			3.85			3.91			(0.03	)		(2.04	)		(2.07	)
Year ended 3-31-2013		15.54		0.07			0.76			0.83			(0.06	)		—			(0.06	)
Year ended 3-31-2012		13.93		0.02			1.59			1.61			—			—			—
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		17.16		(0.03	)		1.05			1.02			—			—			—
Year ended 3-31-2016		18.74		(0.09	)		(0.31	)		(0.40	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		17.25		(0.09	)		2.97			2.88			—			(1.39	)		(1.39	)
Year ended 3-31-2014		15.62		(0.04	)		3.67			3.63			—			(2.00	)		(2.00	)
Year ended 3-31-2013		14.92		(0.02	)		0.72			0.70			—			—			—
Year ended 3-31-2012		13.46		(0.05	)		1.51			1.46			—			—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		18.47		0.04			1.13			1.17			—			—			—
Year ended 3-31-2016		19.93		0.05			(0.33	)		(0.28	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015(6)		18.91		0.02			2.39			2.41			—			(1.39	)		(1.39	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		18.04		0.01			1.11			1.12			—			—			—
Year ended 3-31-2016		19.57		(0.01	)		(0.34	)		(0.35	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		17.89		(0.02	)		3.09			3.07			—			(1.39	)		(1.39	)
Year ended 3-31-2014		16.11		0.03			3.80			3.83			(0.01	)		(2.04	)		(2.05	)
Year ended 3-31-2013		15.36		0.05			0.74			0.79			(0.04	)		—			(0.04	)
Year ended 3-31-2012		13.80		0.01			1.55			1.56			—			—			—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

164 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	18.74		6.12	%	$	505			1.15	%(4)		0.01	%(4)		1.18	%(4)		-0.02	%(4)		20	%
Year ended 3-31-2016		17.66		-2.08			1,197			1.15			-0.15			1.16			-0.16			38
Year ended 3-31-2015		19.19		17.45			1,093			1.15			-0.20			1.17			-0.22			36
Year ended 3-31-2014		17.59		24.21			1,090			1.15			0.07			1.19			0.03			50
Year ended 3-31-2013		15.87		5.03			994			1.15			0.22			1.22			0.15			73
Year ended 3-31-2012		15.14		11.24			995			1.15			-0.06			1.22			-0.13			57
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		15.02		5.63			11			2.09	(4)		-0.96	(4)		—			—			20
Year ended 3-31-2016		14.22		-2.98			11			2.07			-1.07			—			—			38
Year ended 3-31-2015		15.82		16.49			12			2.01			-1.06			—			—			36
Year ended 3-31-2014		14.84		23.08			11			2.06			-0.84			—			—			50
Year ended 3-31-2013		13.73		4.02			11			2.15			-0.78			2.18			-0.81			73
Year ended 3-31-2012		13.20		10.09			15			2.18			-1.10			2.22			-1.14			57
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		16.06		5.73			107			1.87	(4)		-0.74	(4)		—			—			20
Year ended 3-31-2016		15.19		-2.74			107			1.86			-0.85			—			—			38
Year ended 3-31-2015		16.78		16.67			94			1.86			-0.92			—			—			36
Year ended 3-31-2014		15.64		23.17			78			1.90			-0.68			—			—			50
Year ended 3-31-2013		14.36		4.28			71			1.93			-0.57			—			—			73
Year ended 3-31-2012		13.78		10.33			81			1.95			-0.86			—			—			57
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		18.72		6.12			12			1.15	(4)		-0.02	(4)		1.36	(4)		-0.23	(4)		20
Year ended 3-31-2016		17.64		-2.08			12			1.15			-0.14			1.35			-0.34			38
Year ended 3-31-2015		19.17		17.47			9			1.15			-0.21			1.39			-0.45			36
Year ended 3-31-2014		17.57		24.16			7			1.15			0.06			1.46			-0.25			50
Year ended 3-31-2013		15.86		5.03			6			1.15			0.21			1.59			-0.24			73
Year ended 3-31-2012		15.13		11.25			5			1.15			-0.06			1.62			-0.53			57
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		19.56		6.25			957			0.88	(4)		0.20	(4)		0.89	(4)		0.19	(4)		20
Year ended 3-31-2016		18.41		-1.79			272			0.88			0.11			—			—			38
Year ended 3-31-2015		19.90		17.75			318			0.88			0.04			—			—			36
Year ended 3-31-2014		18.15		24.52			118			0.88			0.34			0.88			0.34			50
Year ended 3-31-2013		16.31		5.36			142			0.88			0.45			0.89			0.45			73
Year ended 3-31-2012		15.54		11.56			242			0.89			0.18			—			—			57
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		18.18		5.94			22			1.47	(4)		-0.35	(4)		—			—			20
Year ended 3-31-2016		17.16		-2.39			22			1.47			-0.48			—			—			38
Year ended 3-31-2015		18.74		17.16			26			1.47			-0.52			—			—			36
Year ended 3-31-2014		17.25		23.75			31			1.47			-0.26			—			—			50
Year ended 3-31-2013		15.62		4.69			28			1.48			-0.11			—			—			73
Year ended 3-31-2012		14.92		10.85			24			1.48			-0.39			—			—			57
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		19.64		6.33			—	*		0.71	(4)		0.40	(4)		—			—			20
Year ended 3-31-2016		18.47		-1.64			7			0.73			0.28			—			—			38
Year ended 3-31-2015(6)		19.93		13.18			6			0.72	(4)		0.17	(4)		—			—			36	(7)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		19.16		6.21			122			1.06	(4)		0.07	(4)		1.12	(4)		0.01	(4)		20
Year ended 3-31-2016		18.04		-2.03			125			1.06			-0.07			1.11			-0.12			38
Year ended 3-31-2015		19.57		17.62			132			1.06			-0.11			1.12			-0.17			36
Year ended 3-31-2014		17.89		24.30			131			1.06			0.16			1.13			0.09			50
Year ended 3-31-2013		16.11		5.09			126			1.06			0.31			1.13			0.23			73
Year ended 3-31-2012		15.36		11.38			121			1.06			0.04			1.14			-0.04			57

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 165

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(1)		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 9-30-2016 (unaudited)	$	10.87	$	0.09	$	0.09		$	0.18		$	(0.09	)	$	—		$	(0.09	)
Year ended 3-31-2016		10.92		0.15		(0.05	)		0.10			(0.15	)		—			(0.15	)
Year ended 3-31-2015		10.90		0.15		0.02			0.17			(0.15	)		—			(0.15	)
Year ended 3-31-2014		11.20		0.14		(0.23	)		(0.09	)		(0.15	)		(0.06	)		(0.21	)
Year ended 3-31-2013		11.16		0.17		0.08			0.25			(0.18	)		(0.03	)		(0.21	)
Year ended 3-31-2012		11.04		0.20		0.20			0.40			(0.23	)		(0.05	)		(0.28	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		10.87		0.04		0.10			0.14			(0.05	)		—			(0.05	)
Year ended 3-31-2016		10.92		0.06		(0.05	)		0.01			(0.06	)		—			(0.06	)
Year ended 3-31-2015		10.90		0.06		0.02			0.08			(0.06	)		—			(0.06	)
Year ended 3-31-2014		11.20		0.05		(0.23	)		(0.18	)		(0.06	)		(0.06	)		(0.12	)
Year ended 3-31-2013		11.16		0.07		0.09			0.16			(0.09	)		(0.03	)		(0.12	)
Year ended 3-31-2012		11.04		0.11		0.20			0.31			(0.14	)		(0.05	)		(0.19	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		10.87		0.05		0.09			0.14			(0.05	)		—			(0.05	)
Year ended 3-31-2016		10.92		0.07		(0.05	)		0.02			(0.07	)		—			(0.07	)
Year ended 3-31-2015		10.90		0.07		0.02			0.09			(0.07	)		—			(0.07	)
Year ended 3-31-2014		11.20		0.06		(0.23	)		(0.17	)		(0.07	)		(0.06	)		(0.13	)
Year ended 3-31-2013		11.16		0.08		0.09			0.17			(0.10	)		(0.03	)		(0.13	)
Year ended 3-31-2012		11.04		0.12		0.20			0.32			(0.15	)		(0.05	)		(0.20	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		10.87		0.08		0.09			0.17			(0.08	)		—			(0.08	)
Year ended 3-31-2016		10.92		0.13		(0.04	)		0.09			(0.14	)		—			(0.14	)
Year ended 3-31-2015		10.90		0.13		0.03			0.16			(0.14	)		—			(0.14	)
Year ended 3-31-2014		11.20		0.13		(0.23	)		(0.10	)		(0.14	)		(0.06	)		(0.20	)
Year ended 3-31-2013		11.16		0.15		0.09			0.24			(0.17	)		(0.03	)		(0.20	)
Year ended 3-31-2012		11.04		0.19		0.20			0.39			(0.22	)		(0.05	)		(0.27	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		10.87		0.10		0.09			0.19			(0.10	)		—			(0.10	)
Year ended 3-31-2016		10.92		0.17		(0.04	)		0.13			(0.18	)		—			(0.18	)
Year ended 3-31-2015		10.90		0.17		0.03			0.20			(0.18	)		—			(0.18	)
Year ended 3-31-2014		11.20		0.17		(0.23	)		(0.06	)		(0.18	)		(0.06	)		(0.24	)
Year ended 3-31-2013		11.16		0.19		0.09			0.28			(0.21	)		(0.03	)		(0.24	)
Year ended 3-31-2012		11.04		0.23		0.20			0.43			(0.26	)		(0.05	)		(0.31	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		10.87		0.07		0.09			0.16			(0.07	)		—			(0.07	)
Year ended 3-31-2016		10.92		0.11		(0.05	)		0.06			(0.11	)		—			(0.11	)
Year ended 3-31-2015		10.90		0.11		0.03			0.14			(0.12	)		—			(0.12	)
Year ended 3-31-2014		11.20		0.11		(0.23	)		(0.12	)		(0.12	)		(0.06	)		(0.18	)
Year ended 3-31-2013(6)		11.19		0.02		0.02			0.04			(0.03	)		—			(0.03	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		10.87		0.11		0.09			0.20			(0.11	)		—			(0.11	)
Year ended 3-31-2016		10.92		0.19		(0.05	)		0.14			(0.19	)		—			(0.19	)
Year ended 3-31-2015(7)		10.91		0.13		0.01			0.14			(0.13	)		—			(0.13	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		10.87		0.09		0.09			0.18			(0.09	)		—			(0.09	)
Year ended 3-31-2016		10.92		0.15		(0.05	)		0.10			(0.15	)		—			(0.15	)
Year ended 3-31-2015		10.90		0.15		0.02			0.17			(0.15	)		—			(0.15	)
Year ended 3-31-2014		11.20		0.14		(0.23	)		(0.09	)		(0.15	)		(0.06	)		(0.21	)
Year ended 3-31-2013		11.16		0.17		0.08			0.25			(0.18	)		(0.03	)		(0.21	)
Year ended 3-31-2012		11.04		0.21		0.19			0.40			(0.23	)		(0.05	)		(0.28	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

166 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	10.96		1.66	%	$	675			0.88	%(4)		1.62	%(4)		—	%		—	%		37	%
Year ended 3-31-2016		10.87		0.95			1,589			0.88			1.36			—			—			46
Year ended 3-31-2015		10.92		1.60			1,504			0.88			1.36			—			—			39
Year ended 3-31-2014		10.90		-0.74			1,446			0.89			1.31			—			—			39
Year ended 3-31-2013		11.20		2.29			1,211			0.88			1.48			—			—			55
Year ended 3-31-2012		11.16		3.66			1,046			0.90			1.84			—			—			40
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		10.96		1.25			13			1.70	(4)		0.78	(4)		—			—			37
Year ended 3-31-2016		10.87		0.12			14			1.71			0.54			—			—			46
Year ended 3-31-2015		10.92		0.75			13			1.72			0.52			—			—			39
Year ended 3-31-2014		10.90		-1.59			19			1.76			0.44			—			—			39
Year ended 3-31-2013		11.20		1.45			25			1.71			0.66			—			—			55
Year ended 3-31-2012		11.16		2.80			26			1.74			1.00			—			—			40
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		10.96		1.29			110			1.61	(4)		0.87	(4)		—			—			37
Year ended 3-31-2016		10.87		0.22			128			1.61			0.63			—			—			46
Year ended 3-31-2015		10.92		0.83			117			1.64			0.60			—			—			39
Year ended 3-31-2014		10.90		-1.47			131			1.63			0.56			—			—			39
Year ended 3-31-2013		11.20		1.54			218			1.61			0.76			—			—			55
Year ended 3-31-2012		11.16		2.89			242			1.65			1.10			—			—			40
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		10.96		1.61			5			0.98	(4)		1.48	(4)		—			—			37
Year ended 3-31-2016		10.87		0.83			4			1.00			1.24			1.03			1.21			46
Year ended 3-31-2015		10.92		1.48			4			1.00			1.24			1.03			1.21			39
Year ended 3-31-2014		10.90		-0.85			3			1.00			1.20			1.02			1.18			39
Year ended 3-31-2013		11.20		2.17			4			1.00			1.35			—			—			55
Year ended 3-31-2012		11.16		3.58			3			1.00			1.72			1.09			1.63			40
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		10.96		1.79			947			0.64	(4)		1.80	(4)		—			—			37
Year ended 3-31-2016		10.87		1.20			56			0.64			1.60			—			—			46
Year ended 3-31-2015		10.92		1.86			44			0.63			1.60			—			—			39
Year ended 3-31-2014		10.90		-0.50			49			0.64			1.54			—			—			39
Year ended 3-31-2013		11.20		2.54			117			0.64			1.72			—			—			55
Year ended 3-31-2012		11.16		3.92			102			0.66			2.07			—			—			40
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		10.96		1.48			1			1.24	(4)		1.23	(4)		—			—			37
Year ended 3-31-2016		10.87		0.59			1			1.24			0.98			—			—			46
Year ended 3-31-2015		10.92		1.24			1			1.23			1.00			—			—			39
Year ended 3-31-2014		10.90		-1.08			—	*		1.24			0.96			—			—			39
Year ended 3-31-2013(6)		11.20		0.41			—	*		1.21	(4)		0.59	(4)		—			—			55	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		10.96		1.86			85			0.48	(4)		1.93	(4)		—			—			37
Year ended 3-31-2016		10.87		1.35			2			0.49			1.76			—			—			46
Year ended 3-31-2015(7)		10.92		1.31			3			0.48	(4)		1.75	(4)		—			—			39	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		10.96		1.67			21			0.88	(4)		1.59	(4)		0.89	(4)		1.58	(4)		37
Year ended 3-31-2016		10.87		0.95			16			0.88			1.35			0.89			1.34			46
Year ended 3-31-2015		10.92		1.59			21			0.88			1.35			0.89			1.34			39
Year ended 3-31-2014		10.90		-0.74			26			0.89			1.30			0.90			1.29			39
Year ended 3-31-2013		11.20		2.29			58			0.88			1.48			0.89			1.47			55
Year ended 3-31-2012		11.16		3.66			51			0.90			1.85			0.92			1.84			40

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 167

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)(1)			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 9-30-2016 (unaudited)	$	9.46	$	0.02		$	0.50		$	0.52		$	—		$	—	$	—
Year ended 3-31-2016		10.52		0.07			(1.06	)		(0.99	)		(0.07	)		—		(0.07	)
Year ended 3-31-2015		10.15		0.14			0.37			0.51			(0.14	)		—		(0.14	)
Year ended 3-31-2014		8.98		0.11			1.17			1.28			(0.11	)		—		(0.11	)
Year ended 3-31-2013		8.70		0.11			0.29			0.40			(0.12	)		—		(0.12	)
Year ended 3-31-2012		9.56		0.14			(0.86	)		(0.72	)		(0.14	)		—		(0.14	)
Class B Shares(6)
Six-month period ended 9-30-2016 (unaudited)		9.25		(0.03	)		0.51			0.48			—			—		—
Year ended 3-31-2016		10.33		(0.02	)		(1.06	)		(1.08	)		—	*		—		—	*
Year ended 3-31-2015		9.99		0.06			0.36			0.42			(0.08	)		—		(0.08	)
Year ended 3-31-2014		8.85		0.03			1.17			1.20			(0.06	)		—		(0.06	)
Year ended 3-31-2013		8.59		0.04			0.29			0.33			(0.07	)		—		(0.07	)
Year ended 3-31-2012		9.48		0.06			(0.87	)		(0.81	)		(0.08	)		—		(0.08	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		9.28		(0.02	)		0.50			0.48			—			—		—
Year ended 3-31-2016		10.36		0.00	*		(1.07	)		(1.07	)		(0.01	)		—		(0.01	)
Year ended 3-31-2015		10.02		0.07			0.36			0.43			(0.09	)		—		(0.09	)
Year ended 3-31-2014		8.87		0.04			1.17			1.21			(0.06	)		—		(0.06	)
Year ended 3-31-2013		8.61		0.04			0.29			0.33			(0.07	)		—		(0.07	)
Year ended 3-31-2012		9.49		0.07			(0.86	)		(0.79	)		(0.09	)		—		(0.09	)
Class E Shares(7)
Six-month period ended 9-30-2016 (unaudited)		9.47		0.02			0.50			0.52			—			—		—
Year ended 3-31-2016		10.53		0.08			(1.06	)		(0.98	)		(0.08	)		—		(0.08	)
Year ended 3-31-2015		10.16		0.15			0.37			0.52			(0.15	)		—		(0.15	)
Year ended 3-31-2014		8.99		0.12			1.17			1.29			(0.12	)		—		(0.12	)
Year ended 3-31-2013		8.70		0.12			0.30			0.42			(0.13	)		—		(0.13	)
Year ended 3-31-2012		9.57		0.15			(0.88	)		(0.73	)		(0.14	)		—		(0.14	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		9.50		0.02			0.51			0.53			—			—		—
Year ended 3-31-2016		10.54		0.13			(1.08	)		(0.95	)		(0.09	)		—		(0.09	)
Year ended 3-31-2015		10.17		0.19			0.35			0.54			(0.17	)		—		(0.17	)
Year ended 3-31-2014		9.01		0.14			1.15			1.29			(0.13	)		—		(0.13	)
Year ended 3-31-2013		8.73		0.13			0.30			0.43			(0.15	)		—		(0.15	)
Year ended 3-31-2012		9.58		0.16			(0.85	)		(0.69	)		(0.16	)		—		(0.16	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		9.44		0.00	*		0.50			0.50			—			—		—
Year ended 3-31-2016		10.50		0.06			(1.06	)		(1.00	)		(0.06	)		—		(0.06	)
Year ended 3-31-2015		10.13		0.13			0.37			0.50			(0.13	)		—		(0.13	)
Year ended 3-31-2014		8.97		0.10			1.16			1.26			(0.10	)		—		(0.10	)
Year ended 3-31-2013(8)		8.88		(0.01	)		0.10			0.09			—			—		—
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		9.46		0.02			0.50			0.52			—			—		—
Year ended 3-31-2016		10.51		0.07			(1.04	)		(0.97	)		(0.08	)		—		(0.08	)
Year ended 3-31-2015		10.14		0.17			0.35			0.52			(0.15	)		—		(0.15	)
Year ended 3-31-2014		8.97		0.13			1.16			1.29			(0.12	)		—		(0.12	)
Year ended 3-31-2013		8.69		0.12			0.29			0.41			(0.13	)		—		(0.13	)
Year ended 3-31-2012		9.55		0.16			(0.88	)		(0.72	)		(0.14	)		—		(0.14	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Does not include expenses of underlying Ivy Funds in which the Fund invests.

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

(5) Annualized.

(6) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(7) Class share is closed to investment.

(8) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

168 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver(3)			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)(4)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)(4)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	9.98		5.50	%	$	75			0.49	%(5)		0.34	%(5)		—	%		—	%		3	%
Year ended 3-31-2016		9.46		-9.41			188			0.46			0.71			—			—			37
Year ended 3-31-2015		10.52		5.17			228			0.48			1.36			—			—			4
Year ended 3-31-2014		10.15		14.33			254			0.49			1.16			—			—			21
Year ended 3-31-2013		8.98		4.65			183			0.49			1.32			—			—			21
Year ended 3-31-2012		8.70		-7.42			185			0.50			1.58			—			—			8
Class B Shares(6)
Six-month period ended 9-30-2016 (unaudited)		9.73		5.19			1			1.40	(5)		-0.65	(5)		1.50	(5)		-0.75	(5)		3
Year ended 3-31-2016		9.25		-10.42			2			1.40			-0.24			1.48			-0.32			37
Year ended 3-31-2015		10.33		4.28			2			1.36			0.60			—			—			4
Year ended 3-31-2014		9.99		13.53			3			1.39			0.28			—			—			21
Year ended 3-31-2013		8.85		3.83			2			1.40			0.44			—			—			21
Year ended 3-31-2012		8.59		-8.42			3			1.39			0.66			—			—			8
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		9.76		5.17			5			1.26	(5)		-0.48	(5)		—			—			3
Year ended 3-31-2016		9.28		-10.30			5			1.27			-0.04			—			—			37
Year ended 3-31-2015		10.36		4.32			5			1.29			0.73			—			—			4
Year ended 3-31-2014		10.02		13.57			6			1.26			0.43			—			—			21
Year ended 3-31-2013		8.87		4.01			5			1.29			0.53			—			—			21
Year ended 3-31-2012		8.61		-8.25			5			1.30			0.79			—			—			8
Class E Shares(7)
Six-month period ended 9-30-2016 (unaudited)		9.99		5.49			—	*		0.39	(5)		0.37	(5)		—			—			3
Year ended 3-31-2016		9.47		-9.36			—	*		0.39			0.79			—			—			37
Year ended 3-31-2015		10.53		5.25			—	*		0.39			1.49			—			—			4
Year ended 3-31-2014		10.16		14.38			—	*		0.40			1.24			—			—			21
Year ended 3-31-2013		8.99		4.86			—	*		0.39			1.44			—			—			21
Year ended 3-31-2012		8.70		-7.45			—	*		0.40			1.66			—			—			8
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		10.03		5.58			111			0.14	(5)		0.45	(5)		—			—			3
Year ended 3-31-2016		9.50		-9.00			1			0.16			1.28			—			—			37
Year ended 3-31-2015		10.54		5.41			1			0.16			1.82			0.18			1.80			4
Year ended 3-31-2014		10.17		14.41			1			0.16			1.47			—			—			21
Year ended 3-31-2013		9.01		4.97			1			0.16			1.46			—			—			21
Year ended 3-31-2012		8.73		-7.04			1			0.15			1.89			—			—			8
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		9.94		5.30			1			0.68	(5)		0.08	(5)		—			—			3
Year ended 3-31-2016		9.44		-9.55			1			0.64			0.55			—			—			37
Year ended 3-31-2015		10.50		5.07			1			0.63			1.26			—			—			4
Year ended 3-31-2014		10.13		14.12			1			0.63			1.01			—			—			21
Year ended 3-31-2013(8)		8.97		1.01			—	*		0.72	(5)		-0.55	(5)		—			—			21	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		9.98		5.50			1			0.38	(5)		0.36	(5)		0.43	(5)		0.31	(5)		3
Year ended 3-31-2016		9.46		-9.28			1			0.38			0.68			0.40			0.66			37
Year ended 3-31-2015		10.51		5.26			2			0.38			1.63			0.47			1.54			4
Year ended 3-31-2014		10.14		14.42			2			0.40			1.33			—			—			21
Year ended 3-31-2013		8.97		4.77			1			0.38			1.42			—			—			21
Year ended 3-31-2012		8.69		-7.42			1			0.46			1.85			—			—			8

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 169

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(1)			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 9-30-2016 (unaudited)	$	18.14	$	(0.13	)	$	5.61		$	5.48		$	—	$	—		$	—
Year ended 3-31-2016		24.73		(0.32	)		(5.37	)		(5.69	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		27.31		(0.36	)		(0.82	)		(1.18	)		—		(1.40	)		(1.40	)
Year ended 3-31-2014		20.45		(0.36	)		8.65			8.29			—		(1.43	)		(1.43	)
Year ended 3-31-2013		19.27		(0.25	)		1.43			1.18			—		—			—
Year ended 3-31-2012		19.63		(0.29	)		1.27			0.98			—		(1.34	)		(1.34	)
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		17.20		(0.21	)		5.29			5.08			—		—			—
Year ended 3-31-2016		23.70		(0.49	)		(5.11	)		(5.60	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		26.23		(0.56	)		(0.79	)		(1.35	)		—		(1.18	)		(1.18	)
Year ended 3-31-2014		19.86		(0.57	)		8.36			7.79			—		(1.42	)		(1.42	)
Year ended 3-31-2013		18.93		(0.44	)		1.37			0.93			—		—			—
Year ended 3-31-2012		19.27		(0.49	)		1.26			0.77			—		(1.11	)		(1.11	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		17.45		(0.20	)		5.38			5.18			—		—			—
Year ended 3-31-2016		24.00		(0.47	)		(5.18	)		(5.65	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		26.56		(0.53	)		(0.80	)		(1.33	)		—		(1.23	)		(1.23	)
Year ended 3-31-2014		20.05		(0.52	)		8.45			7.93			—		(1.42	)		(1.42	)
Year ended 3-31-2013		19.04		(0.38	)		1.39			1.01			—		—			—
Year ended 3-31-2012		19.42		(0.43	)		1.25			0.82			—		(1.20	)		(1.20	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		18.53		(0.08	)		5.72			5.64			—		—			—
Year ended 3-31-2016		25.12		(0.22	)		(5.47	)		(5.69	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		27.65		(0.27	)		(0.83	)		(1.10	)		—		(1.43	)		(1.43	)
Year ended 3-31-2014		20.65		(0.26	)		8.75			8.49			—		(1.49	)		(1.49	)
Year ended 3-31-2013		19.37		(0.17	)		1.45			1.28			—		—			—
Year ended 3-31-2012		19.73		(0.21	)		1.26			1.05			—		(1.41	)		(1.41	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		18.08		(0.14	)		5.58			5.44			—		—			—
Year ended 3-31-2016		24.69		(0.35	)		(5.36	)		(5.71	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		27.27		(0.41	)		(0.81	)		(1.22	)		—		(1.36	)		(1.36	)
Year ended 3-31-2014		20.45		(0.40	)		8.64			8.24			—		(1.42	)		(1.42	)
Year ended 3-31-2013(5)		17.77		(0.10	)		2.78			2.68			—		—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		18.61		(0.07	)		5.76			5.69			—		—			—
Year ended 3-31-2016		25.19		(0.19	)		(5.49	)		(5.68	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015(6)		23.73		(0.15	)		3.01			2.86			—		(1.40	)		(1.40	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		18.72		(0.11	)		5.79			5.68			—		—			—
Year ended 3-31-2016		25.44		(0.28	)		(5.54	)		(5.82	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		28.02		(0.33	)		(0.84	)		(1.17	)		—		(1.41	)		(1.41	)
Year ended 3-31-2014		20.51		(0.33	)		9.29			8.96			—		(1.45	)		(1.45	)
Year ended 3-31-2013		19.29		(0.22	)		1.44			1.22			—		—			—
Year ended 3-31-2012		19.64		(0.26	)		1.28			1.02			—		(1.37	)		(1.37	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

170 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	23.62		30.21	%	$	86			1.72	%(3)		-1.29	%(3)		17	%
Year ended 3-31-2016		18.14		-23.51			130			1.69			-1.42			84
Year ended 3-31-2015		24.73		-3.91			199			1.64			-1.50			47
Year ended 3-31-2014		27.31		41.32			213			1.64			-1.45			67
Year ended 3-31-2013		20.45		6.12			80			1.78			-1.36			51
Year ended 3-31-2012		19.27		6.56			72			1.78			-1.63			78
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		22.28		29.54			2			2.65	(3)		-2.18	(3)		17
Year ended 3-31-2016		17.20		-24.16			1			2.57			-2.29			84
Year ended 3-31-2015		23.70		-4.80			2			2.54			-2.40			47
Year ended 3-31-2014		26.23		39.96			3			2.59			-2.40			67
Year ended 3-31-2013		19.86		4.97			2			2.90			-2.48			51
Year ended 3-31-2012		18.93		5.28			1			2.99			-2.84			78
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		22.63		29.69			8			2.49	(3)		-2.02	(3)		17
Year ended 3-31-2016		17.45		-24.06			7			2.42			-2.15			84
Year ended 3-31-2015		24.00		-4.63			10			2.39			-2.25			47
Year ended 3-31-2014		26.56		40.28			14			2.35			-2.15			67
Year ended 3-31-2013		20.05		5.36			5			2.55			-2.14			51
Year ended 3-31-2012		19.04		5.65			4			2.62			-2.47			78
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		24.17		30.44			72			1.30	(3)		-0.74	(3)		17
Year ended 3-31-2016		18.53		-23.14			10			1.25			-0.96			84
Year ended 3-31-2015		25.12		-3.56			21			1.24			-1.09			47
Year ended 3-31-2014		27.65		41.90			34			1.23			-1.01			67
Year ended 3-31-2013		20.65		6.66			4			1.31			-0.93			51
Year ended 3-31-2012		19.37		7.00			3			1.34			-1.19			78
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		23.52		30.09			1			1.85	(3)		-1.39	(3)		17
Year ended 3-31-2016		18.08		-23.63			1			1.84			-1.58			84
Year ended 3-31-2015		24.69		-4.08			1			1.83			-1.69			47
Year ended 3-31-2014		27.27		41.09			—	*		1.84			-1.66			67
Year ended 3-31-2013(5)		20.45		15.08			—	*		1.89	(3)		-1.84	(3)		51	(7)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		24.30		30.58			2			1.09	(3)		-0.62	(3)		17
Year ended 3-31-2016		18.61		-23.03			2			1.08			-0.84			84
Year ended 3-31-2015(6)		25.19		12.53			2			1.08	(3)		-0.94	(3)		47	(8)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		24.40		30.34			1			1.52	(3)		-1.05	(3)		17
Year ended 3-31-2016		18.72		-23.36			1			1.50			-1.21			84
Year ended 3-31-2015		25.44		-3.77			2			1.49			-1.34			47
Year ended 3-31-2014		28.02		44.49			3			1.50			-1.30			67
Year ended 3-31-2013		20.51		6.32			1			1.60			-1.21			51
Year ended 3-31-2012		19.29		6.79			1			1.59			-1.45			78

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 171

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)(1)			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 9-30-2016 (unaudited)	$	18.96	$	(0.02	)	$	1.36		$	1.34		$	—	$	—		$	—
Year ended 3-31-2016		23.43		(0.06	)		(2.33	)		(2.39	)		—		(2.08	)		(2.08	)
Year ended 3-31-2015		23.45		(0.12	)		2.49			2.37			—		(2.39	)		(2.39	)
Year ended 3-31-2014		20.22		(0.14	)		4.17			4.03			—		(0.80	)		(0.80	)
Year ended 3-31-2013		18.62		(0.09	)		1.80			1.71			—		(0.11	)		(0.11	)
Year ended 3-31-2012		18.36		(0.12	)		0.85			0.73			—		(0.47	)		(0.47	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		15.76		(0.08	)		1.13			1.05			—		—			—
Year ended 3-31-2016		19.84		(0.19	)		(1.96	)		(2.15	)		—		(1.93	)		(1.93	)
Year ended 3-31-2015		20.30		(0.25	)		2.13			1.88			—		(2.34	)		(2.34	)
Year ended 3-31-2014		17.66		(0.27	)		3.61			3.34			—		(0.70	)		(0.70	)
Year ended 3-31-2013		16.42		(0.23	)		1.58			1.35			—		(0.11	)		(0.11	)
Year ended 3-31-2012		16.40		(0.25	)		0.74			0.49			—		(0.47	)		(0.47	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		16.69		(0.08	)		1.19			1.11			—		—			—
Year ended 3-31-2016		20.88		(0.19	)		(2.07	)		(2.26	)		—		(1.93	)		(1.93	)
Year ended 3-31-2015		21.24		(0.26	)		2.25			1.99			—		(2.35	)		(2.35	)
Year ended 3-31-2014		18.44		(0.26	)		3.77			3.51			—		(0.71	)		(0.71	)
Year ended 3-31-2013		17.11		(0.21	)		1.65			1.44			—		(0.11	)		(0.11	)
Year ended 3-31-2012		17.04		(0.23	)		0.77			0.54			—		(0.47	)		(0.47	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		18.54		(0.02	)		1.33			1.31			—		—			—
Year ended 3-31-2016		22.92		(0.08	)		(2.29	)		(2.37	)		—		(2.01	)		(2.01	)
Year ended 3-31-2015		23.02		(0.19	)		2.46			2.27			—		(2.37	)		(2.37	)
Year ended 3-31-2014		19.90		(0.20	)		4.09			3.89			—		(0.77	)		(0.77	)
Year ended 3-31-2013		18.37		(0.14	)		1.78			1.64			—		(0.11	)		(0.11	)
Year ended 3-31-2012		18.17		(0.15	)		0.82			0.67			—		(0.47	)		(0.47	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		20.15		0.00	*		1.45			1.45			—		—			—
Year ended 3-31-2016		24.77		0.00	*		(2.46	)		(2.46	)		—		(2.16	)		(2.16	)
Year ended 3-31-2015		24.60		(0.05	)		2.63			2.58			—		(2.41	)		(2.41	)
Year ended 3-31-2014		21.17		(0.07	)		4.36			4.29			—		(0.86	)		(0.86	)
Year ended 3-31-2013		19.43		(0.04	)		1.89			1.85			—		(0.11	)		(0.11	)
Year ended 3-31-2012		19.07		(0.07	)		0.90			0.83			—		(0.47	)		(0.47	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		18.65		(0.05	)		1.34			1.29			—		—			—
Year ended 3-31-2016		23.08		(0.13	)		(2.29	)		(2.42	)		—		(2.01	)		(2.01	)
Year ended 3-31-2015		23.18		(0.18	)		2.45			2.27			—		(2.37	)		(2.37	)
Year ended 3-31-2014		20.02		(0.19	)		4.12			3.93			—		(0.77	)		(0.77	)
Year ended 3-31-2013		18.49		(0.15	)		1.79			1.64			—		(0.11	)		(0.11	)
Year ended 3-31-2012		18.27		(0.16	)		0.85			0.69			—		(0.47	)		(0.47	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		20.22		0.02			1.46			1.48			—		—			—
Year ended 3-31-2016		24.81		0.05			(2.48	)		(2.43	)		—		(2.16	)		(2.16	)
Year ended 3-31-2015(6)		24.38		(0.02	)		2.84			2.82			—		(2.39	)		(2.39	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		19.69		(0.02	)		1.42			1.40			—		—			—
Year ended 3-31-2016		24.26		(0.06	)		(2.41	)		(2.47	)		—		(2.10	)		(2.10	)
Year ended 3-31-2015		24.18		(0.11	)		2.58			2.47			—		(2.39	)		(2.39	)
Year ended 3-31-2014		20.83		(0.12	)		4.30			4.18			—		(0.83	)		(0.83	)
Year ended 3-31-2013		19.17		(0.09	)		1.86			1.77			—		(0.11	)		(0.11	)
Year ended 3-31-2012		18.86		(0.10	)		0.88			0.78			—		(0.47	)		(0.47	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

172 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	20.30		7.07	%	$	530		1.31	%(4)		-0.23	%(4)		1.36	%(4)		-0.28	%(4)		4	%
Year ended 3-31-2016		18.96		-10.27			787		1.29			-0.30			—			—			38
Year ended 3-31-2015		23.43		10.73			1,025		1.28			-0.50			1.29			-0.51			35
Year ended 3-31-2014		23.45		20.09			1,558		1.34			-0.63			—			—			43
Year ended 3-31-2013		20.22		9.28			1,160		1.31			-0.52			—			—			32
Year ended 3-31-2012		18.62		4.29			636		1.40			-0.69			—			—			29
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		16.81		6.66			18		2.09	(4)		-1.01	(4)		—			—			4
Year ended 3-31-2016		15.76		-10.95			19		2.05			-1.06			—			—			38
Year ended 3-31-2015		19.84		9.94			24		2.05			-1.26			—			—			35
Year ended 3-31-2014		20.30		19.14			26		2.10			-1.39			—			—			43
Year ended 3-31-2013		17.66		8.27			21		2.21			-1.42			—			—			32
Year ended 3-31-2012		16.42		3.33			17		2.35			-1.63			—			—			29
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		17.80		6.65			239		2.04	(4)		-0.96	(4)		—			—			4
Year ended 3-31-2016		16.69		-10.92			264		2.01			-1.02			—			—			38
Year ended 3-31-2015		20.88		10.00			343		2.01			-1.22			—			—			35
Year ended 3-31-2014		21.24		19.25			295		2.01			-1.31			—			—			43
Year ended 3-31-2013		18.44		8.46			183		2.07			-1.28			—			—			32
Year ended 3-31-2012		17.11		3.50			135		2.14			-1.44			—			—			29
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		19.85		7.06			8		1.30	(4)		-0.22	(4)		1.65	(4)		-0.57	(4)		4
Year ended 3-31-2016		18.54		-10.41			7		1.41			-0.41			1.63			-0.63			38
Year ended 3-31-2015		22.92		10.46			7		1.60			-0.82			1.63			-0.85			35
Year ended 3-31-2014		23.02		19.75			6		1.60			-0.90			1.71			-1.01			43
Year ended 3-31-2013		19.90		8.97			4		1.60			-0.81			1.90			-1.11			32
Year ended 3-31-2012		18.37		4.00			3		1.60			-0.88			1.97			-1.25			29
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		21.60		7.20			1,366		1.05	(4)		0.03	(4)		—			—			4
Year ended 3-31-2016		20.15		-10.00			1,423		1.00			-0.01			—			—			38
Year ended 3-31-2015		24.77		11.09			2,933		0.99			-0.19			—			—			35
Year ended 3-31-2014		24.60		20.52			2,098		0.99			-0.28			—			—			43
Year ended 3-31-2013		21.17		9.57			1,316		1.02			-0.24			—			—			32
Year ended 3-31-2012		19.43		4.65			788		1.05			-0.38			—			—			29
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		19.94		6.92			62		1.62	(4)		-0.54	(4)		—			—			4
Year ended 3-31-2016		18.65		-10.55			71		1.60			-0.61			—			—			38
Year ended 3-31-2015		23.08		10.40			96		1.59			-0.80			—			—			35
Year ended 3-31-2014		23.18		19.83			103		1.59			-0.89			—			—			43
Year ended 3-31-2013		20.02		8.92			77		1.62			-0.82			—			—			32
Year ended 3-31-2012		18.49		4.09			50		1.63			-0.93			—			—			29
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		21.70		7.32			86		0.87	(4)		0.21	(4)		—			—			4
Year ended 3-31-2016		20.22		-9.85			77		0.85			0.24			—			—			38
Year ended 3-31-2015(6)		24.81		12.18			27		0.84	(4)		-0.15	(4)		—			—			35	(7)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		21.09		7.11			374		1.26	(4)		-0.19	(4)		—			—			4
Year ended 3-31-2016		19.69		-10.26			471		1.24			-0.25			—			—			38
Year ended 3-31-2015		24.26		10.82			706		1.23			-0.44			—			—			35
Year ended 3-31-2014		24.18		20.21			694		1.23			-0.53			—			—			43
Year ended 3-31-2013		20.83		9.33			521		1.27			-0.48			—			—			32
Year ended 3-31-2012		19.17		4.44			439		1.25			-0.55			1.30			-0.60			29

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 173

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MID CAP INCOME OPPORTUNITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		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 9-30-2016 (unaudited)	$	10.93	$	0.09	$	0.77		$	0.86		$	(0.05	)	$	—		$	(0.05	)
Year ended 3-31-2016		11.10		0.15		(0.15	)		0.00	*		(0.15	)		(0.02	)		(0.17	)
Year ended 3-31-2015(5)		10.00		0.10		1.05			1.15			(0.05	)		—	*		(0.05	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		10.91		0.06		0.75			0.81			(0.01	)		—			(0.01	)
Year ended 3-31-2016		11.10		0.08		(0.16	)		(0.08	)		(0.09	)		(0.02	)		(0.11	)
Year ended 3-31-2015(5)		10.00		0.05		1.07			1.12			(0.02	)		—	*		(0.02	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		10.93		0.10		0.77			0.87			(0.05	)		—			(0.05	)
Year ended 3-31-2016		11.11		0.16		(0.16	)		0.00	*		(0.16	)		(0.02	)		(0.18	)
Year ended 3-31-2015(5)		10.00		0.09		1.07			1.16			(0.05	)		—	*		(0.05	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		10.94		0.13		0.75			0.88			(0.06	)		—			(0.06	)
Year ended 3-31-2016		11.11		0.19		(0.16	)		0.03			(0.18	)		(0.02	)		(0.20	)
Year ended 3-31-2015(5)		10.00		0.10		1.08			1.18			(0.07	)		—	*		(0.07	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		10.92		0.07		0.75			0.82			(0.02	)		—			(0.02	)
Year ended 3-31-2016		11.10		0.11		(0.16	)		(0.05	)		(0.11	)		(0.02	)		(0.13	)
Year ended 3-31-2015(5)		10.00		0.06		1.07			1.13			(0.03	)		—	*		(0.03	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		10.94		0.12		0.76			0.88			(0.06	)		—			(0.06	)
Year ended 3-31-2016		11.11		0.19		(0.16	)		0.03			(0.18	)		(0.02	)		(0.20	)
Year ended 3-31-2015(5)		10.00		0.10		1.08			1.18			(0.07	)		—	*		(0.07	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		10.93		0.10		0.76			0.86			(0.05	)		—			(0.05	)
Year ended 3-31-2016		11.11		0.16		(0.17	)		(0.01	)		(0.15	)		(0.02	)		(0.17	)
Year ended 3-31-2015(5)		10.00		0.09		1.07			1.16			(0.05	)		—	*		(0.05	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) For the period from October 1, 2014 (commencement of operations of the class) through March 31, 2015.

(6) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

(7) Ratio of expenses to average net assets excluding offering cost was 1.31%.

(8) Ratio of expenses to average net assets excluding offering cost was 2.03%.

(9) Ratio of expenses to average net assets excluding offering cost was 1.26%.

(10) Ratio of expenses to average net assets excluding offering cost was 1.01%.

(11) Ratio of expenses to average net assets excluding offering cost was 1.76%.

(12) Ratio of expenses to average net assets excluding offering cost was 1.01%.

(13) Ratio of expenses to average net assets excluding offering cost was 1.31%.

(14) Ratio of expenses to average net assets excluding offering cost was 1.16%.

(15) Ratio of expenses to average net assets excluding offering cost was 1.88%.

(16) Ratio of expenses to average net assets excluding offering cost was 1.11%.

(17) Ratio of expenses to average net assets excluding offering cost was 0.86%.

(18) Ratio of expenses to average net assets excluding offering cost was 1.61%.

(19) Ratio of expenses to average net assets excluding offering cost was 0.86%.

(20) Ratio of expenses to average net assets excluding offering cost was 1.16%.

174 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	11.74		7.83	%	$	85		1.35	%(4)		1.63	%(4)		1.45	%(4)		1.53	%(4)		23	%
Year ended 3-31-2016		10.93		0.06			95		1.35	(7)		1.44			1.66			1.13			26
Year ended 3-31-2015(5)		11.10		11.56			43		1.35	(4)(14)		1.83	(4)		1.60	(4)		1.58	(4)		10	(6)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		11.71		7.42			10		2.07	(4)		1.02	(4)		2.15	(4)		0.94	(4)		23
Year ended 3-31-2016		10.91		-0.70			5		2.07	(8)		0.72			2.28			0.51			26
Year ended 3-31-2015(5)		11.10		11.26			3		2.07	(4)(15)		0.98	(4)		2.22	(4)		0.83	(4)		10	(6)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		11.75		7.94			2		1.28	(4)		1.79	(4)		—			—			23
Year ended 3-31-2016		10.93		0.01			2		1.30	(9)		1.50			1.41			1.39			26
Year ended 3-31-2015(5)		11.11		11.68			2		1.30	(4)(16)		1.70	(4)		1.42	(4)		1.58	(4)		10	(6)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		11.76		8.06			98		1.05	(4)		2.21	(4)		1.13	(4)		2.13	(4)		23
Year ended 3-31-2016		10.94		0.28			8		1.05	(10)		1.76			1.30			1.51			26
Year ended 3-31-2015(5)		11.11		11.81			9		1.05	(4)(17)		1.97	(4)		1.32	(4)		1.70	(4)		10	(6)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		11.72		7.54			2		1.78	(4)		1.29	(4)		—			—			23
Year ended 3-31-2016		10.92		-0.41			2		1.80	(11)		1.00			1.91			0.89			26
Year ended 3-31-2015(5)		11.10		11.38			2		1.80	(4)(18)		1.20	(4)		1.92	(4)		1.08	(4)		10	(6)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		11.76		8.06			4		1.03	(4)		2.04	(4)		—			—			23
Year ended 3-31-2016		10.94		0.28			3		1.05	(12)		1.75			1.16			1.64			26
Year ended 3-31-2015(5)		11.11		11.81			3		1.05	(4)(19)		1.97	(4)		1.18	(4)		1.84	(4)		10	(6)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		11.74		7.83			11		1.35	(4)		1.71	(4)		1.40	(4)		1.66	(4)		23
Year ended 3-31-2016		10.93		-0.03			5		1.35	(13)		1.46			1.58			1.23			26
Year ended 3-31-2015(5)		11.11		11.66			4		1.35	(4)(20)		1.73	(4)		1.57	(4)		1.51	(4)		10	(6)

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 175

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(1)			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 9-30-2016 (unaudited)	$	1.00	$	0.00	*	$	0.00	$	0.00	*	$	—	*	$	—	$	—	*
Year ended 3-31-2016		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2015		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2014		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2013		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2012		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2016		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2015		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2014		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2013		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2012		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2016		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2015		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2014		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2013		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2012		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2016		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2015		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2014		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2013		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*
Year ended 3-31-2012		1.00		0.00	*		0.00		0.00	*		—	*		—		—	*

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

176 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	1.00		0.02	%	$	146		0.58	%(4)		0.02	%(4)		0.65	%(4)		-0.05	%(4)
Year ended 3-31-2016		1.00		0.02			167		0.30			0.02			0.61			-0.29
Year ended 3-31-2015		1.00		0.02			119		0.17			0.02			0.68			-0.49
Year ended 3-31-2014		1.00		0.02			137		0.20			0.02			0.69			-0.47
Year ended 3-31-2013		1.00		0.02			128		0.31			0.02			0.67			-0.34
Year ended 3-31-2012		1.00		0.02			171		0.28			0.02			0.66			-0.36
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		1.00		0.02			5		0.58	(4)		0.02	(4)		1.77	(4)		-1.17	(4)
Year ended 3-31-2016		1.00		0.02			6		0.30			0.02			1.65			-1.33
Year ended 3-31-2015		1.00		0.02			4		0.17			0.02			1.73			-1.54
Year ended 3-31-2014		1.00		0.02			7		0.20			0.02			1.74			-1.52
Year ended 3-31-2013		1.00		0.02			8		0.31			0.02			1.70			-1.37
Year ended 3-31-2012		1.00		0.02			8		0.28			0.02			1.73			-1.43
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		1.00		0.02			36		0.58	(4)		0.02	(4)		1.61	(4)		-1.01	(4)
Year ended 3-31-2016		1.00		0.02			44		0.30			0.02			1.57			-1.25
Year ended 3-31-2015		1.00		0.02			32		0.17			0.02			1.62			-1.43
Year ended 3-31-2014		1.00		0.02			34		0.20			0.02			1.63			-1.41
Year ended 3-31-2013		1.00		0.02			35		0.31			0.02			1.65			-1.32
Year ended 3-31-2012		1.00		0.02			41		0.28			0.02			1.64			-1.34
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		1.00		0.02			7		0.58	(4)		0.02	(4)		0.69	(4)		-0.09	(4)
Year ended 3-31-2016		1.00		0.02			7		0.29			0.02			0.68			-0.37
Year ended 3-31-2015		1.00		0.02			6		0.17			0.02			0.74			-0.55
Year ended 3-31-2014		1.00		0.02			6		0.20			0.02			0.73			-0.51
Year ended 3-31-2013		1.00		0.02			5		0.31			0.02			0.75			-0.42
Year ended 3-31-2012		1.00		0.02			4		0.28			0.02			0.78			-0.48

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 177

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(1)		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 9-30-2016 (unaudited)	$	12.13	$	0.13	$	0.09		$	0.22		$	(0.13	)	$	—	$	(0.13	)
Year ended 3-31-2016		12.07		0.28		0.06			0.34			(0.28	)		—		(0.28	)
Year ended 3-31-2015		11.74		0.31		0.33			0.64			(0.31	)		—		(0.31	)
Year ended 3-31-2014		12.19		0.34		(0.45	)		(0.11	)		(0.34	)		—		(0.34	)
Year ended 3-31-2013		11.88		0.34		0.31			0.65			(0.34	)		—		(0.34	)
Year ended 3-31-2012		10.95		0.42		0.93			1.35			(0.42	)		—		(0.42	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		12.13		0.09		0.08			0.17			(0.08	)		—		(0.08	)
Year ended 3-31-2016		12.07		0.19		0.06			0.25			(0.19	)		—		(0.19	)
Year ended 3-31-2015		11.74		0.22		0.33			0.55			(0.22	)		—		(0.22	)
Year ended 3-31-2014		12.19		0.25		(0.45	)		(0.20	)		(0.25	)		—		(0.25	)
Year ended 3-31-2013		11.88		0.25		0.31			0.56			(0.25	)		—		(0.25	)
Year ended 3-31-2012		10.95		0.33		0.93			1.26			(0.33	)		—		(0.33	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		12.13		0.09		0.09			0.18			(0.09	)		—		(0.09	)
Year ended 3-31-2016		12.07		0.19		0.06			0.25			(0.19	)		—		(0.19	)
Year ended 3-31-2015		11.74		0.22		0.33			0.55			(0.22	)		—		(0.22	)
Year ended 3-31-2014		12.19		0.25		(0.45	)		(0.20	)		(0.25	)		—		(0.25	)
Year ended 3-31-2013		11.88		0.25		0.31			0.56			(0.25	)		—		(0.25	)
Year ended 3-31-2012		10.95		0.33		0.93			1.26			(0.33	)		—		(0.33	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		12.13		0.15		0.08			0.23			(0.14	)		—		(0.14	)
Year ended 3-31-2016		12.07		0.31		0.05			0.36			(0.30	)		—		(0.30	)
Year ended 3-31-2015		11.74		0.33		0.34			0.67			(0.34	)		—		(0.34	)
Year ended 3-31-2014		12.19		0.36		(0.45	)		(0.09	)		(0.36	)		—		(0.36	)
Year ended 3-31-2013		11.88		0.36		0.31			0.67			(0.36	)		—		(0.36	)
Year ended 3-31-2012		10.95		0.44		0.93			1.37			(0.44	)		—		(0.44	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		12.13		0.13		0.09			0.22			(0.13	)		—		(0.13	)
Year ended 3-31-2016		12.07		0.28		0.06			0.34			(0.28	)		—		(0.28	)
Year ended 3-31-2015		11.74		0.31		0.33			0.64			(0.31	)		—		(0.31	)
Year ended 3-31-2014		12.19		0.34		(0.45	)		(0.11	)		(0.34	)		—		(0.34	)
Year ended 3-31-2013		11.88		0.34		0.31			0.65			(0.34	)		—		(0.34	)
Year ended 3-31-2012		10.95		0.42		0.93			1.35			(0.42	)		—		(0.42	)

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

178 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	12.22		1.82	%	$	91		0.99	%(4)		2.15	%(4)		—	%		—	%		1	%
Year ended 3-31-2016		12.13		2.87			184		0.99			2.35			—			—			4
Year ended 3-31-2015		12.07		5.51			148		1.01			2.60			—			—			8
Year ended 3-31-2014		11.74		-0.86			113		1.02			2.90			—			—			7
Year ended 3-31-2013		12.19		5.50			133		1.01			2.77			—			—			6
Year ended 3-31-2012		11.88		12.49			97		1.06			3.60			—			—			4
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		12.22		1.44			2		1.75	(4)		1.39	(4)		—			—			1
Year ended 3-31-2016		12.13		2.11			2		1.73			1.62			—			—			4
Year ended 3-31-2015		12.07		4.71			2		1.77			1.87			—			—			8
Year ended 3-31-2014		11.74		-1.63			2		1.79			2.12			—			—			7
Year ended 3-31-2013		12.19		4.72			4		1.75			2.04			—			—			6
Year ended 3-31-2012		11.88		11.67			3		1.81			2.83			—			—			4
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		12.22		1.44			31		1.73	(4)		1.41	(4)		—			—			1
Year ended 3-31-2016		12.13		2.12			31		1.73			1.61			—			—			4
Year ended 3-31-2015		12.07		4.72			24		1.76			1.86			—			—			8
Year ended 3-31-2014		11.74		-1.62			21		1.78			2.12			—			—			7
Year ended 3-31-2013		12.19		4.71			31		1.76			2.03			—			—			6
Year ended 3-31-2012		11.88		11.65			28		1.82			2.85			—			—			4
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		12.22		1.92			115		0.79	(4)		2.34	(4)		—			—			1
Year ended 3-31-2016		12.13		3.09			9		0.78			2.55			—			—			4
Year ended 3-31-2015		12.07		5.73			5		0.80			2.75			—			—			8
Year ended 3-31-2014		11.74		-0.65			2		0.81			3.11			—			—			7
Year ended 3-31-2013		12.19		5.72			2		0.80			2.94			—			—			6
Year ended 3-31-2012		11.88		12.75			1		0.85			3.79			—			—			4
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		12.22		1.82			1		0.99	(4)		2.15	(4)		1.03	(4)		2.11	(4)		1
Year ended 3-31-2016		12.13		2.87			1		0.99			2.35			1.03			2.31			4
Year ended 3-31-2015		12.07		5.52			1		1.01			2.60			1.05			2.56			8
Year ended 3-31-2014		11.74		-0.87			1		1.02			2.89			1.06			2.85			7
Year ended 3-31-2013		12.19		5.49			1		1.01			2.78			1.06			2.73			6
Year ended 3-31-2012		11.88		12.51			1		1.06			3.63			1.11			3.58			4

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 179

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(1)		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 9-30-2016 (unaudited)	$	5.28	$	0.11	$	0.09		$	0.20		$	(0.11	)	$	—		$	(0.11	)
Year ended 3-31-2016		5.31		0.22		(0.03	)		0.19			(0.22	)		—			(0.22	)
Year ended 3-31-2015		5.03		0.23		0.28			0.51			(0.23	)		—			(0.23	)
Year ended 3-31-2014		5.47		0.24		(0.42	)		(0.18	)		(0.24	)		(0.02	)		(0.26	)
Year ended 3-31-2013		5.23		0.21		0.24			0.45			(0.21	)		—			(0.21	)
Year ended 3-31-2012		4.75		0.25		0.48			0.73			(0.25	)		—			(0.25	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		5.28		0.09		0.09			0.18			(0.09	)		—			(0.09	)
Year ended 3-31-2016		5.31		0.18		(0.03	)		0.15			(0.18	)		—			(0.18	)
Year ended 3-31-2015		5.03		0.19		0.28			0.47			(0.19	)		—			(0.19	)
Year ended 3-31-2014		5.47		0.20		(0.42	)		(0.22	)		(0.20	)		(0.02	)		(0.22	)
Year ended 3-31-2013		5.23		0.17		0.24			0.41			(0.17	)		—			(0.17	)
Year ended 3-31-2012		4.75		0.20		0.49			0.69			(0.21	)		—			(0.21	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		5.28		0.09		0.09			0.18			(0.09	)		—			(0.09	)
Year ended 3-31-2016		5.31		0.18		(0.03	)		0.15			(0.18	)		—			(0.18	)
Year ended 3-31-2015		5.03		0.19		0.28			0.47			(0.19	)		—			(0.19	)
Year ended 3-31-2014		5.47		0.20		(0.42	)		(0.22	)		(0.20	)		(0.02	)		(0.22	)
Year ended 3-31-2013		5.23		0.17		0.24			0.41			(0.17	)		—			(0.17	)
Year ended 3-31-2012		4.75		0.21		0.48			0.69			(0.21	)		—			(0.21	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		5.28		0.12		0.09			0.21			(0.12	)		—			(0.12	)
Year ended 3-31-2016		5.31		0.23		(0.03	)		0.20			(0.23	)		—			(0.23	)
Year ended 3-31-2015		5.03		0.24		0.28			0.52			(0.24	)		—			(0.24	)
Year ended 3-31-2014		5.47		0.24		(0.42	)		(0.18	)		(0.24	)		(0.02	)		(0.26	)
Year ended 3-31-2013		5.23		0.22		0.24			0.46			(0.22	)		—			(0.22	)
Year ended 3-31-2012		4.75		0.25		0.48			0.73			(0.25	)		—			(0.25	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		5.28		0.11		0.09			0.20			(0.11	)		—			(0.11	)
Year ended 3-31-2016		5.31		0.22		(0.03	)		0.19			(0.22	)		—			(0.22	)
Year ended 3-31-2015		5.03		0.23		0.28			0.51			(0.23	)		—			(0.23	)
Year ended 3-31-2014		5.47		0.24		(0.42	)		(0.18	)		(0.24	)		(0.02	)		(0.26	)
Year ended 3-31-2013		5.23		0.21		0.24			0.45			(0.21	)		—			(0.21	)
Year ended 3-31-2012		4.75		0.24		0.49			0.73			(0.25	)		—			(0.25	)

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

180 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	5.37		3.83	%	$	320		0.86	%(4)		4.17	%(4)		—	%		—	%		3	%
Year ended 3-31-2016		5.28		3.61			389		0.86			4.19			0.88			4.17			4
Year ended 3-31-2015		5.31		10.29			377		0.85			4.46			0.87			4.44			9
Year ended 3-31-2014		5.03		-3.32			366		0.86			4.58			0.87			4.57			21
Year ended 3-31-2013		5.47		8.71			545		0.84			3.91			0.85			3.90			9
Year ended 3-31-2012		5.23		15.62			384		0.87			4.88			0.90			4.85			4
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		5.37		3.43			13		1.62	(4)		3.40	(4)		—			—			3
Year ended 3-31-2016		5.28		2.84			14		1.62			3.43			1.64			3.41			4
Year ended 3-31-2015		5.31		9.44			15		1.62			3.69			1.64			3.67			9
Year ended 3-31-2014		5.03		-4.07			15		1.64			3.82			1.65			3.81			21
Year ended 3-31-2013		5.47		7.86			19		1.62			3.12			1.63			3.11			9
Year ended 3-31-2012		5.23		14.70			12		1.67			4.07			1.70			4.04			4
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		5.37		3.45			229		1.58	(4)		3.44	(4)		—			—			3
Year ended 3-31-2016		5.28		2.87			237		1.58			3.47			1.60			3.45			4
Year ended 3-31-2015		5.31		9.50			238		1.58			3.72			1.60			3.70			9
Year ended 3-31-2014		5.03		-4.04			216		1.60			3.84			1.61			3.83			21
Year ended 3-31-2013		5.47		7.92			323		1.57			3.17			1.59			3.15			9
Year ended 3-31-2012		5.23		14.77			198		1.62			4.12			1.65			4.09			4
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		5.37		3.92			781		0.68	(4)		4.35	(4)		—			—			3
Year ended 3-31-2016		5.28		3.80			701		0.67			4.38			0.69			4.36			4
Year ended 3-31-2015		5.31		10.50			703		0.68			4.62			0.70			4.60			9
Year ended 3-31-2014		5.03		-3.16			586		0.69			4.76			0.70			4.75			21
Year ended 3-31-2013		5.47		8.88			749		0.68			4.06			0.69			4.05			9
Year ended 3-31-2012		5.23		15.82			416		0.70			5.04			0.74			5.00			4
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		5.37		3.83			18		0.86	(4)		4.16	(4)		0.93	(4)		4.09	(4)		3
Year ended 3-31-2016		5.28		3.60			21		0.86			4.19			0.95			4.10			4
Year ended 3-31-2015		5.31		10.35			21		0.85			4.39			0.95			4.29			9
Year ended 3-31-2014		5.03		-3.32			15		0.85			4.52			0.95			4.42			21
Year ended 3-31-2013		5.47		8.71			34		0.84			3.92			0.94			3.82			9
Year ended 3-31-2012		5.23		15.65			26		0.87			4.83			0.99			4.71			4

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 181

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 Loss(1)			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 9-30-2016 (unaudited)	$	14.81	$	(0.06	)	$	1.62		$	1.56		$	—		$	—		$	—
Year ended 3-31-2016		18.71		(0.14	)		(1.43	)		(1.57	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		18.51		(0.14	)		1.52			1.38			—			(1.18	)		(1.18	)
Year ended 3-31-2014		16.33		(0.19	)		4.04			3.85			—			(1.67	)		(1.67	)
Year ended 3-31-2013		14.51		(0.14	)		2.35			2.21			—			(0.39	)		(0.39	)
Year ended 3-31-2012		15.39		(0.17	)		(0.21	)		(0.38	)		—			(0.50	)		(0.50	)
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		11.57		(0.10	)		1.27			1.17			—			—			—
Year ended 3-31-2016		15.28		(0.23	)		(1.15	)		(1.38	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		15.47		(0.25	)		1.24			0.99			—			(1.18	)		(1.18	)
Year ended 3-31-2014		13.95		(0.30	)		3.42			3.12			—			(1.60	)		(1.60	)
Year ended 3-31-2013		12.57		(0.25	)		2.02			1.77			—			(0.39	)		(0.39	)
Year ended 3-31-2012		13.56		(0.28	)		(0.21	)		(0.49	)		—			(0.50	)		(0.50	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		12.50		(0.10	)		1.37			1.27			—			—			—
Year ended 3-31-2016		16.27		(0.21	)		(1.23	)		(1.44	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		16.35		(0.23	)		1.33			1.10			—			(1.18	)		(1.18	)
Year ended 3-31-2014		14.63		(0.28	)		3.60			3.32			—			(1.60	)		(1.60	)
Year ended 3-31-2013		13.12		(0.21	)		2.11			1.90			—			(0.39	)		(0.39	)
Year ended 3-31-2012		14.07		(0.24	)		(0.21	)		(0.45	)		—			(0.50	)		(0.50	)
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		14.70		(0.06	)		1.61			1.55			—			—			—
Year ended 3-31-2016		18.60		(0.14	)		(1.43	)		(1.57	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		18.43		(0.16	)		1.51			1.35			—			(1.18	)		(1.18	)
Year ended 3-31-2014		16.27		(0.22	)		4.03			3.81			—			(1.65	)		(1.65	)
Year ended 3-31-2013		14.47		(0.15	)		2.34			2.19			—			(0.39	)		(0.39	)
Year ended 3-31-2012		15.36		(0.18	)		(0.21	)		(0.39	)		—			(0.50	)		(0.50	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		18.57		(0.05	)		2.05			2.00			—			—			—
Year ended 3-31-2016		22.77		(0.09	)		(1.77	)		(1.86	)		(0.01	)		(2.33	)		(2.34	)
Year ended 3-31-2015		22.19		(0.09	)		1.85			1.76			—			(1.18	)		(1.18	)
Year ended 3-31-2014		19.26		(0.15	)		4.80			4.65			—			(1.72	)		(1.72	)
Year ended 3-31-2013		16.98		(0.09	)		2.76			2.67			—			(0.39	)		(0.39	)
Year ended 3-31-2012		17.83		(0.13	)		(0.22	)		(0.35	)		—			(0.50	)		(0.50	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		14.63		(0.08	)		1.61			1.53			—			—			—
Year ended 3-31-2016		18.55		(0.17	)		(1.42	)		(1.59	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		18.41		(0.18	)		1.50			1.32			—			(1.18	)		(1.18	)
Year ended 3-31-2014		16.26		(0.23	)		4.02			3.79			—			(1.64	)		(1.64	)
Year ended 3-31-2013		14.48		(0.17	)		2.34			2.17			—			(0.39	)		(0.39	)
Year ended 3-31-2012		15.38		(0.19	)		(0.21	)		(0.40	)		—			(0.50	)		(0.50	)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		18.62		(0.03	)		2.06			2.03			—			—			—
Year ended 3-31-2016		22.79		(0.06	)		(1.77	)		(1.83	)		(0.01	)		(2.33	)		(2.34	)
Year ended 3-31-2015(6)		20.97		(0.02	)		3.02			3.00			—			(1.18	)		(1.18	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		17.72		(0.07	)		1.95			1.88			—			—			—
Year ended 3-31-2016		21.88		(0.13	)		(1.70	)		(1.83	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		21.42		(0.14	)		1.78			1.64			—			(1.18	)		(1.18	)
Year ended 3-31-2014		18.66		(0.20	)		4.64			4.44			—			(1.68	)		(1.68	)
Year ended 3-31-2013		16.50		(0.13	)		2.68			2.55			—			(0.39	)		(0.39	)
Year ended 3-31-2012		17.38		(0.16	)		(0.22	)		(0.38	)		—			(0.50	)		(0.50	)

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(6) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

182 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	16.37		10.53	%	$	228		1.42	%(4)		-0.78	%(4)		—	%		—	%		19	%
Year ended 3-31-2016		14.81		-8.91			325		1.44			-0.80			—			—			43
Year ended 3-31-2015		18.71		8.03			384		1.43			-0.80			—			—			43
Year ended 3-31-2014		18.51		24.27			406		1.43			-1.07			—			—			45
Year ended 3-31-2013		16.33		15.70			281		1.49			-0.97			—			—			38
Year ended 3-31-2012		14.51		-1.98			241		1.50			-1.21			—			—			65
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		12.74		10.11			8		2.24	(4)		-1.62	(4)		—			—			19
Year ended 3-31-2016		11.57		-9.71			8		2.32			-1.69			—			—			43
Year ended 3-31-2015		15.28		7.07			11		2.31			-1.69			—			—			43
Year ended 3-31-2014		15.47		23.14			13		2.34			-1.99			—			—			45
Year ended 3-31-2013		13.95		14.61			11		2.49			-1.96			—			—			38
Year ended 3-31-2012		12.57		-3.07			10		2.57			-2.27			—			—			65
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		13.77		10.16			164		2.07	(4)		-1.45	(4)		—			—			19
Year ended 3-31-2016		12.50		-9.48			166		2.07			-1.43			—			—			43
Year ended 3-31-2015		16.27		7.36			207		2.07			-1.44			—			—			43
Year ended 3-31-2014		16.35		23.43			225		2.08			-1.73			—			—			45
Year ended 3-31-2013		14.63		15.00			189		2.13			-1.61			—			—			38
Year ended 3-31-2012		13.12		-2.67			181		2.17			-1.87			—			—			65
Class E Shares
Six-month period ended 9-30-2016 (unaudited)		16.25		10.54			7		1.44	(4)		-0.82	(4)		1.73	(4)		-1.11	(4)		19
Year ended 3-31-2016		14.70		-8.96			6		1.49			-0.86			1.73			-1.10			43
Year ended 3-31-2015		18.60		7.90			6		1.56			-0.92			1.79			-1.15			43
Year ended 3-31-2014		18.43		24.13			5		1.56			-1.21			1.87			-1.52			45
Year ended 3-31-2013		16.27		15.61			3		1.56			-1.03			2.06			-1.53			38
Year ended 3-31-2012		14.47		-2.05			3		1.56			-1.27			2.08			-1.79			65
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		20.57		10.77			253		1.08	(4)		-0.49	(4)		—			—			19
Year ended 3-31-2016		18.57		-8.59			169		1.06			-0.43			—			—			43
Year ended 3-31-2015		22.77		8.42			214		1.06			-0.43			—			—			43
Year ended 3-31-2014		22.19		24.78			246		1.06			-0.71			—			—			45
Year ended 3-31-2013		19.26		16.13			176		1.07			-0.54			—			—			38
Year ended 3-31-2012		16.98		-1.54			119		1.07			-0.79			—			—			65
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		16.16		10.46			44		1.66	(4)		-1.04	(4)		—			—			19
Year ended 3-31-2016		14.63		-9.10			42		1.66			-1.03			—			—			43
Year ended 3-31-2015		18.55		7.74			45		1.66			-1.02			—			—			43
Year ended 3-31-2014		18.41		23.99			42		1.66			-1.30			—			—			45
Year ended 3-31-2013		16.26		15.45			22		1.67			-1.15			—			—			38
Year ended 3-31-2012		14.48		-2.11			17		1.66			-1.37			—			—			65
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		20.65		10.90			47		0.91	(4)		-0.29	(4)		—			—			19
Year ended 3-31-2016		18.62		-8.46			23		0.91			-0.28			—			—			43
Year ended 3-31-2015(6)		22.79		14.83			22		0.90	(4)		-0.12	(4)		—			—			43	(7)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		19.60		10.61			220		1.31	(4)		-0.70	(4)		—			—			19
Year ended 3-31-2016		17.72		-8.80			205		1.31			-0.67			—			—			43
Year ended 3-31-2015		21.88		8.16			262		1.30			-0.68			—			—			43
Year ended 3-31-2014		21.42		24.45			276		1.30			-0.95			—			—			45
Year ended 3-31-2013		18.66		15.87			220		1.31			-0.79			—			—			38
Year ended 3-31-2012		16.50		-1.75			207		1.32			-1.03			—			—			65

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 183

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)(1)			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 9-30-2016 (unaudited)	$	14.38	$	0.00	*	$	2.39		$	2.39		$	—		$	—		$	—
Year ended 3-31-2016		17.47		(0.07	)		(0.87	)		(0.94	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		18.32		(0.04	)		0.99			0.95			—			(1.80	)		(1.80	)
Year ended 3-31-2014		17.23		(0.11	)		3.55			3.44			(0.07	)		(2.28	)		(2.35	)
Year ended 3-31-2013		14.96		0.02			2.82			2.84			—			(0.57	)		(0.57	)
Year ended 3-31-2012		18.12		0.00			(1.69	)		(1.69	)		(0.01	)		(1.46	)		(1.47	)
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		11.92		(0.06	)		1.97			1.91			—			—			—
Year ended 3-31-2016		15.01		(0.19	)		(0.75	)		(0.94	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		16.10		(0.18	)		0.84			0.66			—			(1.75	)		(1.75	)
Year ended 3-31-2014		15.39		(0.25	)		3.14			2.89			(0.02	)		(2.16	)		(2.18	)
Year ended 3-31-2013		13.48		(0.13	)		2.50			2.37			—			(0.46	)		(0.46	)
Year ended 3-31-2012		16.66		(0.15	)		(1.57	)		(1.72	)		—			(1.46	)		(1.46	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		12.64		(0.05	)		2.10			2.05			—			—			—
Year ended 3-31-2016		15.74		(0.16	)		(0.79	)		(0.95	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		16.76		(0.14	)		0.89			0.75			—			(1.77	)		(1.77	)
Year ended 3-31-2014		15.94		(0.21	)		3.26			3.05			(0.04	)		(2.19	)		(2.23	)
Year ended 3-31-2013		13.92		(0.08	)		2.60			2.52			—			(0.50	)		(0.50	)
Year ended 3-31-2012		17.09		(0.10	)		(1.61	)		(1.71	)		—			(1.46	)		(1.46	)
Class E Shares(5)
Six-month period ended 9-30-2016 (unaudited)		14.87		0.02			2.48			2.50			—			—			—
Year ended 3-31-2016		17.93		(0.02	)		(0.89	)		(0.91	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		18.76		0.03			1.01			1.04			—			(1.87	)		(1.87	)
Year ended 3-31-2014		17.59		(0.04	)		3.63			3.59			(0.09	)		(2.33	)		(2.42	)
Year ended 3-31-2013		15.25		0.10			2.85			2.95			—			(0.61	)		(0.61	)
Year ended 3-31-2012		18.43		0.07			(1.71	)		(1.64	)		(0.08	)		(1.46	)		(1.54	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		15.42		0.03			2.57			2.60			—			—			—
Year ended 3-31-2016		18.49		0.00	*		(0.92	)		(0.92	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		19.29		0.05			1.04			1.09			—			(1.89	)		(1.89	)
Year ended 3-31-2014		18.03		(0.02	)		3.72			3.70			(0.10	)		(2.34	)		(2.44	)
Year ended 3-31-2013		15.61		0.11			2.94			3.05			—			(0.63	)		(0.63	)
Year ended 3-31-2012		18.83		0.07			(1.73	)		(1.66	)		(0.10	)		(1.46	)		(1.56	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		14.33		(0.02	)		2.38			2.36			—			—			—
Year ended 3-31-2016		17.44		(0.10	)		(0.86	)		(0.96	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		18.31		(0.06	)		0.98			0.92			—			(1.79	)		(1.79	)
Year ended 3-31-2014		17.23		(0.13	)		3.54			3.41			(0.07	)		(2.26	)		(2.33	)
Year ended 3-31-2013(6)		15.24		(0.02	)		2.01			1.99			—			—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		15.52		0.04			2.59			2.63			—			—			—
Year ended 3-31-2016		18.56		0.02			(0.91	)		(0.89	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015(7)		18.96		0.08			1.36			1.44			—			(1.84	)		(1.84	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		15.03		0.01			2.50			2.51			—			—			—
Year ended 3-31-2016		18.12		(0.05	)		(0.89	)		(0.94	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		18.94		(0.02	)		1.04			1.02			—			(1.84	)		(1.84	)
Year ended 3-31-2014		17.74		(0.07	)		3.66			3.59			(0.08	)		(2.31	)		(2.39	)
Year ended 3-31-2013		15.38		0.01			2.95			2.96			—			(0.60	)		(0.60	)
Year ended 3-31-2012		18.58		0.04			(1.72	)		(1.68	)		(0.06	)		(1.46	)		(1.52	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(5) Class share is closed to investment.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

184 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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 9-30-2016 (unaudited)	$	16.77		16.62	%	$	158			1.53	%(3)		-0.05	%(3)		88	%
Year ended 3-31-2016		14.38		-5.11			193			1.56			-0.45			135
Year ended 3-31-2015		17.47		5.74			240			1.54			-0.20			106
Year ended 3-31-2014		18.32		21.10			244			1.57			-0.62			61
Year ended 3-31-2013		17.23		19.49			226			1.66			0.15			52
Year ended 3-31-2012		14.96		-8.06			209			1.67			—			50
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		13.83		16.02			3			2.48	(3)		-0.98	(3)		88
Year ended 3-31-2016		11.92		-5.99			2			2.51			-1.39			135
Year ended 3-31-2015		15.01		4.68			3			2.50			-1.17			106
Year ended 3-31-2014		16.10		19.87			4			2.58			-1.63			61
Year ended 3-31-2013		15.39		18.22			4			2.78			-0.97			52
Year ended 3-31-2012		13.48		-9.09			4			2.78			-1.09			50
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		14.69		16.22			19			2.22	(3)		-0.72	(3)		88
Year ended 3-31-2016		12.64		-5.77			14			2.23			-1.11			135
Year ended 3-31-2015		15.74		5.02			18			2.21			-0.89			106
Year ended 3-31-2014		16.76		20.24			19			2.25			-1.30			61
Year ended 3-31-2013		15.94		18.74			16			2.35			-0.54			52
Year ended 3-31-2012		13.92		-8.80			16			2.40			-0.72			50
Class E Shares(5)
Six-month period ended 9-30-2016 (unaudited)		17.37		16.81			—	*		1.22	(3)		0.28	(3)		88
Year ended 3-31-2016		14.87		-4.80			—	*		1.22			-0.12			135
Year ended 3-31-2015		17.93		6.08			—	*		1.21			0.14			106
Year ended 3-31-2014		18.76		21.56			—	*		1.21			-0.26			61
Year ended 3-31-2013		17.59		20.03			—	*		1.22			0.61			52
Year ended 3-31-2012		15.25		-7.68			—	*		1.23			0.44			50
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		18.02		16.86			128			1.13	(3)		0.40	(3)		88
Year ended 3-31-2016		15.42		-4.71			25			1.12			—	*		135
Year ended 3-31-2015		18.49		6.20			29			1.10			0.26			106
Year ended 3-31-2014		19.29		21.67			26			1.10			-0.15			61
Year ended 3-31-2013		18.03		20.17			19			1.11			0.72			52
Year ended 3-31-2012		15.61		-7.59			16			1.11			0.48			50
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		16.69		16.47			4			1.70	(3)		-0.21	(3)		88
Year ended 3-31-2016		14.33		-5.24			3			1.72			-0.66			135
Year ended 3-31-2015		17.44		5.57			2			1.70			-0.32			106
Year ended 3-31-2014		18.31		20.91			1			1.70			-0.78			61
Year ended 3-31-2013(6)		17.23		13.06			—	*		1.68	(3)		-0.44	(3)		52	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		18.15		16.95			5			0.96	(3)		0.53	(3)		88
Year ended 3-31-2016		15.52		-4.52			4			0.96			0.13			135
Year ended 3-31-2015(7)		18.56		8.17			3			0.96	(3)		0.70	(3)		106	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		17.54		16.70			12			1.37	(3)		0.13	(3)		88
Year ended 3-31-2016		15.03		-4.92			7			1.37			-0.30			135
Year ended 3-31-2015		18.12		5.93			10			1.36			-0.09			106
Year ended 3-31-2014		18.94		21.35			10			1.33			-0.39			61
Year ended 3-31-2013		17.74		19.85			7			1.41			0.05			52
Year ended 3-31-2012		15.38		-7.87			22			1.39			0.28			50

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 185

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)(1)			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 9-30-2016 (unaudited)	$	18.68	$	(0.04	)	$	0.86		$	0.82		$	—		$	—		$	—
Year ended 3-31-2016		19.31		(0.07	)		(0.20	)		(0.27	)		—			(0.36	)		(0.36	)
Year ended 3-31-2015		16.84		(0.02	)		2.86			2.84			—			(0.37	)		(0.37	)
Year ended 3-31-2014		14.13		(0.05	)		3.23			3.18			—			(0.47	)		(0.47	)
Year ended 3-31-2013		13.15		0.05			0.99			1.04			(0.06	)		—			(0.06	)
Year ended 3-31-2012		12.15		(0.03	)		1.03			1.00			—			—			—
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		18.03		(0.11	)		0.83			0.72			—			—			—
Year ended 3-31-2016		18.73		(0.20	)		(0.21	)		(0.41	)		—			(0.29	)		(0.29	)
Year ended 3-31-2015		16.45		(0.14	)		2.79			2.65			—			(0.37	)		(0.37	)
Year ended 3-31-2014		13.87		(0.14	)		3.15			3.01			—			(0.43	)		(0.43	)
Year ended 3-31-2013		12.92		(0.03	)		0.99			0.96			(0.01	)		—			(0.01	)
Year ended 3-31-2012		12.01		(0.10	)		1.01			0.91			—			—			—
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		17.98		(0.11	)		0.82			0.71			—			—			—
Year ended 3-31-2016		18.69		(0.21	)		(0.21	)		(0.42	)		—			(0.29	)		(0.29	)
Year ended 3-31-2015		16.42		(0.15	)		2.79			2.64			—			(0.37	)		(0.37	)
Year ended 3-31-2014		13.85		(0.15	)		3.15			3.00			—			(0.43	)		(0.43	)
Year ended 3-31-2013		12.91		(0.03	)		0.97			0.94			—			—			—
Year ended 3-31-2012		12.01		(0.11	)		1.01			0.90			—			—			—
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		18.83		(0.02	)		0.87			0.85			—			—			—
Year ended 3-31-2016		19.47		(0.03	)		(0.21	)		(0.24	)		—			(0.40	)		(0.40	)
Year ended 3-31-2015		16.93		0.02			2.89			2.91			—			(0.37	)		(0.37	)
Year ended 3-31-2014		14.20		0.00			3.23			3.23			—			(0.50	)		(0.50	)
Year ended 3-31-2013		13.27		0.09			0.92			1.01			(0.08	)		—			(0.08	)
Year ended 3-31-2012		12.22		0.00			1.05			1.05			—			—			—
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		18.71		(0.04	)		0.85			0.81			—			—			—
Year ended 3-31-2016		19.34		(0.07	)		(0.20	)		(0.27	)		—			(0.36	)		(0.36	)
Year ended 3-31-2015		16.86		(0.03	)		2.88			2.85			—			(0.37	)		(0.37	)
Year ended 3-31-2014		14.15		(0.04	)		3.23			3.19			—			(0.48	)		(0.48	)
Year ended 3-31-2013		13.16		0.05			1.00			1.05			(0.06	)		—			(0.06	)
Year ended 3-31-2012		12.15		(0.02	)		1.03			1.01			—			—			—

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

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

(4) Annualized.

(5) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

186 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2016 (unaudited)	$	19.50		4.39	%	$	40		1.20	%(4)		-0.44	%(4)		—	%		—	%		24	%
Year ended 3-31-2016		18.68		-1.51			107		1.22			-0.35			—			—			21
Year ended 3-31-2015		19.31		17.00			71		1.29			-0.13			—			—			36
Year ended 3-31-2014		16.84		22.65			40		1.43			-0.30			—			—			32
Year ended 3-31-2013		14.13		7.91			24		1.14			0.34			1.63			-0.15			26
Year ended 3-31-2012		13.15		8.23			15		1.32			-0.27			1.97			-0.92			26
Class B Shares(5)
Six-month period ended 9-30-2016 (unaudited)		18.75		3.99			1		1.91	(4)		-1.16	(4)		—			—			24
Year ended 3-31-2016		18.03		-2.24			1		1.92			-1.06			—			—			21
Year ended 3-31-2015		18.73		16.25			1		1.95			-0.82			—			—			36
Year ended 3-31-2014		16.45		21.80			1		2.06			-0.92			—			—			32
Year ended 3-31-2013		13.87		7.41			1		1.69			-0.22			2.19			-0.72			26
Year ended 3-31-2012		12.92		7.58			1		1.90			-0.85			2.55			-1.50			26
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		18.69		3.95			5		1.96	(4)		-1.21	(4)		—			—			24
Year ended 3-31-2016		17.98		-2.30			6		2.01			-1.13			—			—			21
Year ended 3-31-2015		18.69		16.21			2		2.01			-0.86			—			—			36
Year ended 3-31-2014		16.42		21.76			2		2.09			-0.96			—			—			32
Year ended 3-31-2013		13.85		7.28			1		1.76			-0.24			2.26			-0.74			26
Year ended 3-31-2012		12.91		7.49			1		1.97			-0.92			2.62			-1.57			26
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		19.68		4.51			71		0.97	(4)		-0.23	(4)		—			—			24
Year ended 3-31-2016		18.83		-1.32			5		0.99			-0.14			—			—			21
Year ended 3-31-2015		19.47		17.33			4		1.04			0.10			—			—			36
Year ended 3-31-2014		16.93		22.91			1		1.15			-0.02			—			—			32
Year ended 3-31-2013		14.20		7.70			1		0.80			0.68			1.30			0.18			26
Year ended 3-31-2012		13.27		8.59			1		1.02			0.03			1.67			-0.62			26
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		19.52		4.33			1		1.20	(4)		-0.45	(4)		1.22	(4)		-0.47	(4)		24
Year ended 3-31-2016		18.71		-1.50			1		1.22			-0.38			1.24			-0.40			21
Year ended 3-31-2015		19.34		17.04			1		1.29			-0.16			—			—			36
Year ended 3-31-2014		16.86		22.56			1		1.41			-0.27			—			—			32
Year ended 3-31-2013		14.15		8.12			1		1.02			0.39			1.51			-0.10			26
Year ended 3-31-2012		13.16		8.31			1		1.25			-0.17			1.90			-0.82			26

See Accompanying Notes to Financial Statements.

2016 SEMIANNUAL REPORT 187

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)(1)			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 9-30-2016 (unaudited)	$	19.72	$	0.12		$	1.16		$	1.28		$	(0.22	)	$	—		$	(0.22	)
Year ended 3-31-2016		23.40		0.14			(1.14	)		(1.00	)		(0.03	)		(2.65	)		(2.68	)
Year ended 3-31-2015		23.82		0.12			1.25			1.37			(0.06	)		(1.73	)		(1.79	)
Year ended 3-31-2014		20.30		0.07			4.42			4.49			(0.04	)		(0.93	)		(0.97	)
Year ended 3-31-2013		17.57		0.15			2.73			2.88			(0.15	)		—	*		(0.15	)
Year ended 3-31-2012		17.93		0.13			(0.19	)		(0.06	)		(0.12	)		(0.18	)		(0.30	)
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		18.39		0.03			1.06			1.09			(0.09	)		—			(0.09	)
Year ended 3-31-2016		22.04		(0.08	)		(1.06	)		(1.14	)		—			(2.51	)		(2.51	)
Year ended 3-31-2015		22.53		(0.10	)		1.19			1.09			—			(1.58	)		(1.58	)
Year ended 3-31-2014		19.28		(0.12	)		4.19			4.07			—			(0.82	)		(0.82	)
Year ended 3-31-2013		16.72		(0.03	)		2.59			2.56			—			—	*		—	*
Year ended 3-31-2012		17.15		(0.07	)		(0.18	)		(0.25	)		—			(0.18	)		(0.18	)
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		19.07		0.07			1.11			1.18			(0.13	)		—			(0.13	)
Year ended 3-31-2016		22.73		(0.01	)		(1.11	)		(1.12	)		—			(2.54	)		(2.54	)
Year ended 3-31-2015		23.18		(0.05	)		1.22			1.17			—			(1.62	)		(1.62	)
Year ended 3-31-2014		19.80		(0.09	)		4.31			4.22			—			(0.84	)		(0.84	)
Year ended 3-31-2013		17.16		0.02			2.67			2.69			(0.05	)		—	*		(0.05	)
Year ended 3-31-2012		17.53		0.00			(0.17	)		(0.17	)		(0.02	)		(0.18	)		(0.20	)
Class E Shares(5)
Six-month period ended 9-30-2016 (unaudited)		19.81		0.16			1.14			1.30			(0.25	)		—			(0.25	)
Year ended 3-31-2016		23.49		0.19			(1.14	)		(0.95	)		(0.04	)		(2.69	)		(2.73	)
Year ended 3-31-2015		23.90		0.17			1.27			1.44			(0.10	)		(1.75	)		(1.85	)
Year ended 3-31-2014		20.36		0.11			4.44			4.55			(0.09	)		(0.92	)		(1.01	)
Year ended 3-31-2013		17.61		0.20			2.74			2.94			(0.19	)		—	*		(0.19	)
Year ended 3-31-2012		18.03		0.18			(0.19	)		(0.01	)		(0.23	)		(0.18	)		(0.41	)
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		19.81		0.21			1.11			1.32			(0.27	)		—			(0.27	)
Year ended 3-31-2016		23.50		0.20			(1.13	)		(0.93	)		(0.05	)		(2.71	)		(2.76	)
Year ended 3-31-2015		23.90		0.19			1.28			1.47			(0.11	)		(1.76	)		(1.87	)
Year ended 3-31-2014		20.36		0.14			4.44			4.58			(0.11	)		(0.93	)		(1.04	)
Year ended 3-31-2013		17.61		0.22			2.74			2.96			(0.21	)		—	*		(0.21	)
Year ended 3-31-2012		18.05		0.21			(0.20	)		0.01			(0.27	)		(0.18	)		(0.45	)
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		19.70		0.11			1.14			1.25			(0.18	)		—			(0.18	)
Year ended 3-31-2016		23.37		0.08			(1.13	)		(1.05	)		(0.01	)		(2.61	)		(2.62	)
Year ended 3-31-2015		23.79		0.05			1.26			1.31			(0.01	)		(1.72	)		(1.73	)
Year ended 3-31-2014		20.28		0.01			4.41			4.42			(0.01	)		(0.90	)		(0.91	)
Year ended 3-31-2013(6)		18.17		0.04			2.07			2.11			—			—			—
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		19.87		0.20			1.13			1.33			(0.29	)		—			(0.29	)
Year ended 3-31-2016		23.56		0.25			(1.15	)		(0.90	)		(0.06	)		(2.73	)		(2.79	)
Year ended 3-31-2015(7)		24.96		0.18			0.25			0.43			(0.10	)		(1.73	)		(1.83	)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		19.77		0.15			1.14			1.29			(0.23	)		—			(0.23	)
Year ended 3-31-2016		23.45		0.15			(1.13	)		(0.98	)		(0.03	)		(2.67	)		(2.70	)
Year ended 3-31-2015		23.86		0.14			1.26			1.40			(0.07	)		(1.74	)		(1.81	)
Year ended 3-31-2014		20.33		0.09			4.43			4.52			(0.06	)		(0.93	)		(0.99	)
Year ended 3-31-2013		17.59		0.17			2.75			2.92			(0.18	)		—	*		(0.18	)
Year ended 3-31-2012		17.99		0.14			(0.17	)		(0.03	)		(0.19	)		(0.18	)		(0.37	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(5) Class share is closed to investment.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015.

188 SEMIANNUAL REPORT 2016

	Net Asset Value, End of Period		Total Return(2)			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 9-30-2016 (unaudited)	$	20.78		6.53	%	$	106			1.36	%(3)		1.14	%(3)		32	%
Year ended 3-31-2016		19.72		-4.60			247			1.30			0.61			55
Year ended 3-31-2015		23.40		5.71			295			1.27			0.48			82
Year ended 3-31-2014		23.82		22.44			248			1.31			0.30			58
Year ended 3-31-2013		20.30		16.59			156			1.43			0.82			57
Year ended 3-31-2012		17.57		-0.13			106			1.53			0.77			54
Class B Shares(4)
Six-month period ended 9-30-2016 (unaudited)		19.39		5.97			3			2.40	(3)		0.27	(3)		32
Year ended 3-31-2016		18.39		-5.54			3			2.27			-0.38			55
Year ended 3-31-2015		22.04		4.80			4			2.18			-0.43			82
Year ended 3-31-2014		22.53		21.35			6			2.17			-0.57			58
Year ended 3-31-2013		19.28		15.40			5			2.43			-0.16			57
Year ended 3-31-2012		16.72		-1.34			3			2.78			-0.47			54
Class C Shares
Six-month period ended 9-30-2016 (unaudited)		20.12		6.20			17			1.99	(3)		0.68	(3)		32
Year ended 3-31-2016		19.07		-5.25			18			1.98			-0.06			55
Year ended 3-31-2015		22.73		5.00			22			1.97			-0.22			82
Year ended 3-31-2014		23.18		21.64			14			2.01			-0.41			58
Year ended 3-31-2013		19.80		15.77			9			2.13			0.12			57
Year ended 3-31-2012		17.16		-0.85			8			2.25			0.02			54
Class E Shares(5)
Six-month period ended 9-30-2016 (unaudited)		20.86		6.65			—	*		1.10	(3)		1.59	(3)		32
Year ended 3-31-2016		19.81		-4.34			—	*		1.06			0.86			55
Year ended 3-31-2015		23.49		5.98			—	*		1.05			0.70			82
Year ended 3-31-2014		23.90		22.73			—	*		1.09			0.51			58
Year ended 3-31-2013		20.36		16.93			—	*		1.14			1.11			57
Year ended 3-31-2012		17.61		0.26			—	*		1.18			1.08			54
Class I Shares
Six-month period ended 9-30-2016 (unaudited)		20.86		6.72			147			1.01	(3)		2.04	(3)		32
Year ended 3-31-2016		19.81		-4.28			7			0.97			0.90			55
Year ended 3-31-2015		23.50		6.13			15			0.94			0.79			82
Year ended 3-31-2014		23.90		22.85			5			0.99			0.63			58
Year ended 3-31-2013		20.36		17.03			4			1.02			1.21			57
Year ended 3-31-2012		17.61		0.38			3			1.06			1.25			54
Class R Shares
Six-month period ended 9-30-2016 (unaudited)		20.77		6.39			—	*		1.59	(3)		1.10	(3)		32
Year ended 3-31-2016		19.70		-4.82			—	*		1.56			0.36			55
Year ended 3-31-2015		23.37		5.45			—	*		1.54			0.21			82
Year ended 3-31-2014		23.79		22.13			1			1.57			0.03			58
Year ended 3-31-2013(6)		20.28		11.61			—	*		1.55	(3)		0.73	(3)		57	(8)
Class R6 Shares
Six-month period ended 9-30-2016 (unaudited)		20.91		6.78			7			0.85	(3)		1.99	(3)		32
Year ended 3-31-2016		19.87		-4.12			2			0.81			1.14			55
Year ended 3-31-2015(7)		23.56		1.72			1			0.79	(3)		1.11	(3)		82	(9)
Class Y Shares
Six-month period ended 9-30-2016 (unaudited)		20.83		6.60			3			1.20	(3)		1.46	(3)		32
Year ended 3-31-2016		19.77		-4.51			2			1.22			0.65			55
Year ended 3-31-2015		23.45		5.84			3			1.20			0.58			82
Year ended 3-31-2014		23.86		22.56			2			1.22			0.40			58
Year ended 3-31-2013		20.33		16.78			2			1.27			0.97			57
Year ended 3-31-2012		17.59		0.09			2			1.31			0.86			54

See Accompanying Notes to Financial Statements.

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NOTES TO FINANCIAL STATMENTS IVY FUNDS

SEPTEMBER 30, 2016 (UNAUDITED)

1. ORGANIZATION

Ivy Funds, a Delaware statutory trust (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 Core Equity Fund, Ivy Cundill Global Value Fund, Ivy Dividend Opportunities Fund, Ivy Emerging Markets Equity Fund, Ivy European Opportunities Fund, Ivy Global Bond Fund, Ivy Global Equity Income Fund, Ivy Global Growth Fund, Ivy Global Income Allocation Fund, Ivy High Income Fund, Ivy International Core Equity Fund, Ivy Large Cap Growth Fund, Ivy Limited-Term Bond Fund, Ivy Managed International Opportunities Fund, Ivy Micro Cap Growth Fund, Ivy Mid Cap Growth Fund, Ivy Mid Cap Income Opportunities Fund, Ivy Money Market Fund, Ivy Municipal Bond Fund, Ivy Municipal High Income Fund, Ivy Small Cap Growth Fund, Ivy Small Cap Value Fund, Ivy Tax-Managed Equity Fund and Ivy Value Fund (each, a “Fund”) are 25 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 (“SAI”). Each Fund’s investment manager is Ivy Investment Management Company (“IICO” or the “Manager”).

Each Fund offers Class A and Class C shares. Each Fund (excluding Ivy Mid Cap Income Opportunities Fund) offers Class B shares. The Funds’ Class B shares are not available for purchase by new and existing investors. Class B shares will continue to be available for dividend reinvestment and exchanges from Class B shares of another fund within Ivy Funds. Class C shares are not available for direct investment in the Ivy Money Market Fund. Class C shares of Ivy Money Market Fund will continue to be available for dividend reinvestment and exchanges from Class C shares of another fund within Ivy Funds. Certain Funds may also offer Class E, Class I, Class R, Class R6 and/or Class Y shares. Class E shares are closed for all investments in the Ivy Emerging Markets Equity Fund, Ivy European Opportunities Fund, Ivy Global Growth Fund, Ivy Managed International Opportunities Fund, Ivy Small Cap Value Fund and Ivy Value Fund. Class A and Class E shares are sold at their offering price, which is normally net asset value (“NAV”) plus a front-end sales charge. For Class A shares, a 1% contingent deferred sales charge (“CDSC”) is only imposed on shares purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. Class B and Class C shares are sold without a front-end sales charge, but may be subject to a CDSC. Class I, Class R, Class R6 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 NAV 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 and Class R6 shares are not included in the plan. Class B shares will automatically convert to Class A shares 96 months after the date of purchase.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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. All or a portion of the distributions received from a real estate investment trust or publicly traded partnership may be designated as a reduction of cost of the related investment or realized gain.

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 approved by the Board of Trustees of the Trust (the “Board”). 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 value when computing net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments. Foreign exchange rates are typically valued as of the close of the New York Stock Exchange (“NYSE”), normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

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 to otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition,

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each Fund intends to pay distributions as required to avoid imposition of excise tax. Accordingly, no provision has been made for Federal income taxes. The Funds file income tax returns in U.S. federal and applicable state jurisdictions. The Funds’ tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax returns. Management of the Trust periodically reviews all tax positions to assess whether 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 the date of these financial statements, management believes that no liability for unrecognized tax positions is required.

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 (“U.S. GAAP”). If the total dividends and distributions made in any tax year exceed net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a return of capital for tax purposes.

Segregation and Collateralization. In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”), the Dodd Frank Wall Street Reform and Consumer Protection Act, or the interpretive rules and regulations of the U.S. Commodities Futures Trading Commission 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 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. Certain countries require that cash reserves be held while investing in companies incorporated in that country. These cash reserves and cash collateral that has been pledged to cover obligations of the Funds under derivative contracts, if any, will be reported separately on the Statement of Assets and Liabilities as “Restricted cash”. Securities collateral pledged for the same purpose, if any, is noted on the Schedule of Investments.

Concentration of Market and Credit Risk. In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded on the Funds’ Statement of Assets and Liabilities, less any collateral held by the Funds.

Certain Funds may hold high-yield and non-investment-grade bonds, that 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.

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 on the Statement of Assets and Liabilities.

If a Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in financial derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad.

Inflation-Indexed Bonds. Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity.

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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. 

Loans. Certain Funds may invest in loans, the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates, the debtor of which may be a domestic or foreign corporation, partnership or other entity (“Borrower”). Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates generally include prime rates of one or more major U.S. banks, the London Interbank Offered Rate (“LIBOR”) or certificates of deposit rates. Loans often require prepayments from excess cash flow or permit the Borrower to repay at its election. The degree to which Borrowers repay cannot be predicted with accuracy. As a result, the actual maturity may be substantially less than the stated maturities. Loans are exempt from registration under the Securities Act of 1933, as amended, may contain certain restrictions on resale, and cannot be sold publicly. A Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties.

When a Fund purchases assignments, it acquires all the rights and obligations under the loan agreement of the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than those held by the assigning lender. When a Fund purchases a participation of a loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation. A participation interest in loans includes the right to receive payments of principal, interest and any fees to which it is entitled from the lender and only upon receipt by the lender of payments from the Borrower, but not from the Borrower directly. When investing in a participation interest, if a Borrower is unable to meet its obligations under a loan agreement, a Fund generally has no direct right to enforce compliance with the terms of the loan agreement. As a result, the Fund assumes the credit risk of the Borrower, the selling participant, and any other persons that are interpositioned between the Fund and the Borrower. If the lead lender in a typical lending syndicate becomes insolvent, enters Federal Deposit Insurance Corporation (“FDIC”) receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in receiving payment or may suffer a loss of principal and interest.

Payment In-Kind Securities. Certain Funds may invest in payment in-kind securities (“PIKs”). PIKs give the issuer the option at each interest payment date of making interest payments in cash or in additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro-rata adjustment from the unrealized appreciation or depreciation on investments to interest receivable on the Statement of Assets and Liabilities. 

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 NAV to the extent the Fund executes such transactions while remaining substantially fully invested. When a Fund engages in when-issued or delayed delivery transactions, 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 subadviser, as applicable, consider advantageous. The Fund maintains internally designated assets with a 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.

Custodian Fees. “Custodian fees” on 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. 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. 

Independent Trustees and Chief Compliance Officer Fees. Fees paid to the Independent Trustees can be paid in cash or deferred to a later date, at the election of the Trustees 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 Chief Compliance Officer of the Funds are shown on the Statement of Operations.

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Indemnification. 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 indemnification. 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.

Basis of Preparation. Each Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). The accompanying financial statements were prepared in accordance with U.S. GAAP, including but not limited to ASC 946. U.S. GAAP requires the use of estimates made by management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity.

New Rule Issuance. In July 2014, the SEC issued Final Rule Release No. 33-9616, Money Market Fund Reform; Amendments to Form PF, which amends the rules governing money market funds. The final amendments impose different implementation dates for the changes that certain money market funds will need to make. Management is currently evaluating the implication of these amendments and their impact of the Final Rule to the Funds’ financial statements and related disclosures.

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

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Each Fund’s investments are reported at fair value. 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. Each Fund calculates the NAV of its shares as of the close of the NYSE, normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

For purposes of calculating the NAV, the portfolio securities and financial instruments are valued on each business day using pricing and valuation methods as adopted by the Board. Where market quotes are readily available, fair value is generally determined on the basis of the last reported sales price, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services.

Prices for fixed-income securities are typically based on quotes that are obtained from an independent pricing service approved by the Board. 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.

Investments in Ivy Money Market Fund are valued on the basis of amortized cost (which approximates 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. Short-term securities with maturities of 60 days or less held in all Funds (with the exception of Ivy Money Market Fund) are valued based on quotes that are obtained from an independent pricing service approved by the Board as described in the preceding paragraph above.

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. Waddell & Reed Services Company (“WRSCO”), pursuant to procedures adopted by the Board, 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 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.

Where market quotes are not readily available, portfolio securities or financial instruments are valued at fair value, as determined in good faith by the Board or Valuation Committee pursuant to procedures approved by the Board.

Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the NYSE close, that materially affect the values of a Fund’s securities or financial instruments. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available.

The Board has delegated to WRSCO the responsibility for monitoring significant events that may materially affect the values of a Fund’s securities or financial instruments and for determining whether the value of the applicable securities or financial instruments should be re-evaluated in light of such significant events. The Board has established a Valuation Committee to administer and oversee the valuation process, including the use of third party pricing vendors.

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The Board has adopted methods for valuing securities and financial instruments in circumstances where market quotes are not readily available. For instances in which daily market quotes are not readily available, investments may be valued, pursuant to procedures established by the Board, with reference to other securities or indices. In the event that the security or financial instrument cannot be valued pursuant to one of the valuation methods established by the Board, the value of the security or financial instrument will be determined in good faith by the Valuation Committee in accordance with the procedures adopted by the Board.

When a Fund uses these fair valuation methods applied by WRSCO that use significant unobservable inputs to determine its NAV, securities will be priced by a method that the Board or persons acting at its direction believe accurately reflects fair value and are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. The prices used by a Fund may differ from the value that will ultimately be realized at the time the securities are sold.

WRSCO is responsible for monitoring the implementation of the pricing and valuation policies through a series of activities to provide reasonable comfort of the accuracy of prices including: 1) periodic vendor due diligence meetings to review methodologies, new developments, and process at vendors, 2) daily and monthly multi-source pricing comparisons reviewed and submitted to the Valuation Committee, and 3) daily review of unpriced, stale, and variance reports with exceptions reviewed by management and the Valuation Committee.

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 as follows:

• Level 1 – Observable input such as quoted prices, available in active markets, for identical assets or liabilities.

• Level 2 – Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

• Level 3 – Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at its direction that are used in determining the fair value of investments.

A description of the valuation techniques applied to the Funds’ major classes of assets and liabilities measured at fair value on a recurring basis follows:

Asset-Backed Securities and Mortgage-Backed Securities. The fair value of asset-backed securities and mortgage-backed securities are estimated using recently executed transactions and based on models that consider the estimated cash flows of each debt tranche of the issuer, establish a benchmark yield, and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche including, but not limited to, the prepayment speed assumptions and attributes of the collateral. To the extent the inputs are observable and timely, the values would be categorized in Level 2 of the fair value hierarchy, and otherwise they would be categorized as Level 3.

Bullion. The fair value of bullion is at the last settlement price at the end of each day on the board of trade or exchange upon which they are traded and are categorized in Level 1 of the fair value hierarchy.

Corporate Bonds. The fair value of corporate bonds, as obtained from an independent pricing service, is estimated using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. While most corporate bonds are categorized in Level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3 of the fair value hierarchy.

Derivative Instruments. Forward foreign currency contracts are valued based upon the closing prices of the forward currency rates determined at the close of the NYSE, are provided by an independent pricing service. Swaps derive their value from underlying asset prices, indices, reference rates and other inputs or a combination of these factors. Swaps are valued by an independent pricing service unless the price is unavailable, in which case they are valued at the price provided

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by a dealer in that security. Futures contracts traded on an exchange are generally valued at the settlement price. Listed options are ordinarily valued at the mean of the last bid and ask price provided by an independent pricing service unless the price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer. Over-the-counter (“OTC”) options are ordinarily valued at the mean of the last bid and ask price provided by an independent pricing service for a comparable listed option unless such a price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer. If no comparable listed option exists from which to obtain a price from an independent pricing service and a quotation cannot be obtained from a broker-dealer, the OTC option will be valued using a model reasonably designed to provide a current market price.

Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. OTC derivative contracts include forward foreign currency contracts, swap agreements, and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices. Depending on the product and the terms of the transaction, the fair value of the OTC derivative products are modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgments and the pricing inputs are observed from actively quoted markets, as is the case with interest rate swap and option contracts. OTC derivative products valued using pricing models with significant observable inputs are categorized within Level 2 of the fair value hierarchy.

Equity Securities. 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. OTC equity securities and listed securities for which no price is readily available are valued at the average of the last bid and ask prices.

Mutual funds, including investment funds, typically are valued at the NAV reported as of the valuation date.

Securities that are stated at the last reported sales price or closing price on the day of valuation taken from the primary exchange where the security is principally traded and to the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.

Foreign securities, for which the primary trading market closes at the same time or after the NYSE, are valued based on quotations from the primary market in which they are traded and categorized in Level 1. Because many foreign securities markets and exchanges close prior to the close of the NYSE, closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intra-day trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, exchange-traded funds, and the movement of certain indices of securities based on a statistical analysis of their historical relationship; such valuations generally are categorized in Level 2.

Preferred stock, repurchase agreements, and other equities traded on inactive markets or valued by reference to similar instruments are also generally categorized in Level 2.

Loans. Loans are valued using a price or composite price from one or more brokers or dealers as obtained from an independent pricing service. The fair value of loans is estimated using recently executed transactions, market price quotations, credit/market events, and cross-asset pricing. Inputs are generally observable market inputs obtained from independent sources. Loans are generally categorized in Level 2 of the fair value hierarchy, unless key inputs are unobservable in which case they would be categorized as Level 3.

Municipal Bonds. Municipal bonds are fair valued based on pricing models used by and obtained from an independent pricing service that take into account, among other factors, information received from market makers and broker-dealers, current trades, bid-wants lists, offerings, market movements, the callability of the bond, state of issuance, benchmark yield curves, and bond insurance. To the extent that these inputs are observable and timely, the fair values of municipal bonds would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.

Restricted Securities. Restricted securities that are deemed to be Rule 144A securities and illiquid, as well as restricted securities held in non-public entities, are included in Level 3 of the fair value hierarchy to the extent that significant inputs to valuation are unobservable, because they trade infrequently, if at all and, therefore, the inputs are unobservable. Restricted securities that are valued at a discount to similar publicly traded securities may be categorized as Level 2 of the fair value hierarchy to the extent that the discount is considered to be insignificant to the fair value measurement in its entirety; otherwise they may be categorized as Level 3.

U.S. Government and Agency Securities. U.S. government and agency securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, quoted market prices, and reference data. Accordingly, U.S. government and agency securities are normally categorized in Level 2 of the fair value hierarchy depending on the liquidity and transparency of the market.

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Transfers from Level 2 to Level 3 occurred primarily 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 primarily due to the increased availability of observable market data due to increased market activity or information. Transfers between levels represent the values as of the beginning of the reporting period.

For fair valuations using unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and Level 3 reconciliation, if any, have been included in the Notes to the Schedule of Investments for each respective Fund.

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 and/or affiliated securities and in net change in unrealized appreciation (depreciation) on investments in unaffiliated and/or affiliated securities, respectively. Additionally, the net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of September 30, 2016, if applicable, is included on the Statement of Operations in net change in unrealized appreciation (depreciation) on investments in unaffiliated and/or affiliated securities.

4. DERIVATIVE INSTRUMENTS ($ amounts in thousands unless indicated otherwise)

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 positions 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 provided by an independent pricing service 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 on the Statement of Assets and Liabilities as a receivable or payable and on 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) on 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 that is not collateralized.

Ivy Cundill Global Value Fund, Ivy Emerging Markets Equity Fund, Ivy European Opportunities Fund, Ivy Global Bond Fund, Ivy Global Equity Income Fund, Ivy Global Growth Fund, Ivy Global Income Allocation Fund, Ivy High Income Fund and Ivy International Core Equity Fund enter into forward foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from foreign currencies (foreign currency exchange rate risk).

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 on 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 on the Statement of Assets and Liabilities. The net change in unrealized appreciation (depreciation) is reported on the Statement of Operations. Realized gains (losses) are reported on 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.

Ivy Bond Fund, Ivy Municipal Bond Fund and Ivy Municipal High Income Fund invest in long and/or short positions in futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk), changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

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

196 SEMIANNUAL REPORT 2016

proceeds from instruments 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 value of the option written. 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 written call option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining whether a Fund has realized a gain or loss. When a written put is exercised, the cost basis of the instruments 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 instrument. With written options, there may be times when a Fund will be required to purchase or sell instruments 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 instrument. Additionally, to the extent a Fund enters into 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.

Ivy Emerging Markets Equity Fund, Ivy Global Equity Income Fund, Ivy Global Income Allocation Fund, Ivy International Core Equity Fund, Ivy Mid Cap Growth Fund and Ivy Value Fund purchase and write call and put options to increase or decrease hedging exposure to underlying instruments (which include credit risk, equity risk, foreign currency exchange rate risk, event risk and/or interest rate risk), increase exposure to various equity markets or certain sectors, gain exposure to or facilitate trading in certain securities and/or, in the case of options written, to generate returns from options premiums.

Swap Agreements. Certain Funds may invest in swap agreements. Swaps are marked to market daily and changes in value are recorded as unrealized appreciation (depreciation) on the Statement of Operations. Payments received or made by the Fund are recorded as realized gain or loss on the Statement of Operations. Any upfront premiums paid are recorded as assets and any upfront fees received are recorded as liabilities and are shown as swap premiums paid and swap premiums received, respectively, if any, on the Statement of Assets and Liabilities and amortized over the term of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as realized gain or loss on the Statement of Operations.

Total return swaps involve a commitment to pay or receive periodic interest payments in exchange for a market-linked return based on a security or a basket of securities including a variety of securities or representing 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.

Ivy High Income Fund and Ivy Small Cap Growth Fund enter into total return swaps to hedge exposure to a security or market.

The creditworthiness of the counterparty 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 that is not collateralized.

Collateral and rights of offset. A Fund may mitigate credit risk with respect to OTC derivative counterparties 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 against each other with collateral, which is generally held by the Fund’s custodian or broker. 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 2 “Segregation and Collateralization” for additional information with respect to collateral practices.

2016 SEMIANNUAL REPORT 197

Offsetting of Assets and Liabilities. The following tables present financial instruments that are either (1) offset or (2) subject to an enforceable master netting arrangement or similar agreement as of September 30, 2016:

Assets

							Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Statement of Assets and Liabilities		Net Amounts of Assets Presented on the Statement of Assets and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Received			Cash Collateral Received			Net Amount Receivable
Ivy Cundill Global Value Fund
Unrealized appreciation on forward foreign currency contracts(1)	$	41	$	—	$	41	$	(41	)	$	—		$	—		$	—
Ivy Emerging Markets Equity Fund
Unrealized appreciation on forward foreign currency contracts	$	213	$	—	$	213	$	—		$	—		$	—		$	213
Ivy European Opportunities Fund
Unrealized appreciation on forward foreign currency contracts	$	174	$	—	$	174	$	—		$	—		$	—		$	174
Ivy Global Bond Fund
Unrealized appreciation on forward foreign currency contracts	$	22	$	—	$	22	$	—		$	—		$	—		$	22
Ivy Global Equity Income Fund
Unrealized appreciation on forward foreign currency contracts	$	369	$	—	$	369	$	—		$	—		$	—		$	369
Ivy Global Growth Fund
Unrealized appreciation on forward foreign currency contracts	$	53	$	—	$	53	$	—		$	—		$	—		$	53
Ivy Global Income Allocation Fund
Unrealized appreciation on forward foreign currency contracts	$	286	$	—	$	286	$	—		$	—		$	(163	)	$	123
Ivy High Income Fund
Unrealized appreciation on forward foreign currency contracts(1)	$	1,058	$	—	$	1,058	$	(421	)	$	—		$	(451	)	$	186
Ivy International Core Equity Fund
Unrealized appreciation on forward foreign currency contracts	$	488	$	—	$	488	$	—		$	—		$	—		$	488
Ivy Mid Cap Growth Fund
Investments in unaffiliated securities at value*	$	3,424	$	—	$	3,424	$	(668	)	$	(2,756	)	$	—		$	—
Ivy Small Cap Growth Fund
Unrealized appreciation on swap agreements	$	2,259	$	—	$	2,259	$	—		$	(1,702	)	$	—		$	557

* Purchased options are reported as investments in unaffiliated securities on the Statement of Assets and Liabilities.

(1) Amounts include forward contracts that have an offset to an open and close contract, but have not settled. These amounts are included on the Statement of Assets and Liabilities line item for Investment securities sold receivable.

198 SEMIANNUAL REPORT 2016

Liabilities

							Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented on the Statement of Assets and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Pledged			Cash Collateral Pledged			Net Amount Payable
Ivy Cundill Global Value Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	90	$	—	$	90	$	(41	)	$	(32	)	$	—		$	17
Ivy Emerging Markets Equity Fund
Unrealized depreciation on forward foreign currency contracts	$	362	$	—	$	362	$	—		$	—		$	(362	)	$	—
Written Options at value		1,968		—		1,968		—			—			(1,968	)		—
Total	$	2,330	$	—	$	2,330	$	—		$	—		$	(2,330	)	$	—
Ivy High Income Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	4,482	$	—	$	4,482	$	(421	)	$	—		$	(3,920	)	$	141
Ivy Mid Cap Growth Fund
Written Options at value	$	15,343	$	—	$	15,343	$	(668	)	$	(14,619	)	$	—		$	56

(1) Amounts include forward contracts that have an offset to an open and close contract, but have not settled. These amounts are included on the Statement of Assets and Liabilities line item for Investment securities purchased payable.

2016 SEMIANNUAL REPORT 199

Additional Disclosure Related to Derivative Instruments

Fair values of derivative instruments as of September 30, 2016:

		Assets			Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value		Statement of Assets & Liabilities Location	Value
Ivy Bond Fund	Interest rate	Unrealized appreciation on futures contracts*	$	267	Unrealized depreciation on futures contracts*	$	171
Ivy Cundill Global Value Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		24	Unrealized depreciation on forward foreign currency contracts		79
Ivy Emerging Markets Equity Fund	Equity			—	Written options at value		1,968
	Foreign currency	Unrealized appreciation on forward foreign currency contracts		213	Unrealized depreciation on forward foreign currency contracts		362
Ivy European Opportunities Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		174			—
Ivy Global Bond Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		22			—
Ivy Global Equity Income Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		369			—
Ivy Global Growth Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		53			—
Ivy Global Income Allocation Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		286			—
Ivy High Income Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		210			—
Ivy International Core Equity Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		488			—
Ivy Mid Cap Growth Fund	Equity	Investments in unaffiliated securities at value**		4,053	Written options at value		15,435
Ivy Municipal Bond Fund	Interest rate	Unrealized appreciation on futures contracts*		77			—
Ivy Municipal High Income Fund	Interest rate	Unrealized appreciation on futures contracts*		637			—
Ivy Small Cap Growth Fund	Equity	Unrealized appreciation on swap agreements		2,259			—
Ivy Value Fund	Equity			—	Written options at value		87

* The value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected on the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable (payable) as of period ended September 30, 2016.

** Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

200 SEMIANNUAL REPORT 2016

Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 2016:

		Net realized gain (loss) on:
Fund	Type of Risk Exposure	Investments in unaffiliated securities*			Swap agreements		Futures contracts			Written options			Forward foreign currency contracts			Total
Ivy Bond Fund	Interest rate	$	—		$	—	$	(637	)	$	—		$	—		$	(637	)
Ivy Cundill Global Value Fund	Foreign currency		—			—		—			—			(2,174	)		(2,174	)
Ivy Emerging Markets Equity Fund	Equity		(1,429)			—		—			2,518			—			1,089
	Foreign currency		—			—		—			—			(274	)		(274	)
Ivy European Opportunities Fund	Foreign currency		—			—		—			—			1,896			1,896
Ivy Global Bond Fund	Foreign currency		—			—		—			—			211			211
Ivy Global Equity Income Fund	Equity		(2)			—		—			—			—			(2)
	Foreign currency		—			—		—			—			2,501			2,501
Ivy Global Growth Fund	Foreign currency		—			—		—			—			(330	)		(330	)
Ivy Global Income Allocation Fund	Equity		687			—		—			483			—			1,170
	Foreign currency		—			—		—			—			2,626			2,626
Ivy High Income Fund	Foreign currency		—			—		—			—			145			145
	Interest Rate		—			1,269		—			—			—			1,269
Ivy International Core Equity Fund	Equity		—			—		—			(174)			—			(174)
	Foreign currency		—			—		—			—			32,258			32,258
Ivy Mid Cap Growth Fund	Equity		(11,267	)		—		—			(199	)		—			(11,466	)
Ivy Municipal Bond Fund	Interest rate		—			—		(48	)		—			—			(48	)
Ivy Municipal High Income Fund	Interest rate		—			—		(400	)		—			—			(400	)
Ivy Small Cap Growth Fund	Equity		—			2,998		—			—			—			2,998
Ivy Value Fund	Equity		(68	)		—		—			627			—			559

* Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

Change in unrealized appreciation (depreciation) on derivatives recognized on the Statement of Operations for the period ended September 30, 2016:

		Net change in unrealized appreciation (depreciation) on:
Fund	Type of Risk Exposure	Investments in unaffiliated securities*		Swap agreements		Futures contracts			Written options		Forward foreign currency contracts			Total
Ivy Bond Fund	Interest rate	$	—	$	—	$	(5	)	$	—	$	—		$	(5	)
Ivy Cundill Global Value Fund	Foreign currency		—		—		—			—		1,616			1,616
Ivy Emerging Markets Equity Fund	Equity		(1,212)		—		—			(1,448)		—			(2,660)
	Foreign currency		—		—		—			—		(546	)		(546	)
Ivy European Opportunities Fund	Foreign currency		—		—		—			—		147			147
Ivy Global Bond Fund	Foreign currency		—		—		—			—		6			6
Ivy Global Equity Income Fund	Foreign currency		—		—		—			—		448			448
Ivy Global Growth Fund	Foreign currency		—		—		—			—		53			53
Ivy Global Income Allocation Fund	Equity		(247)		—		—			(337)		—			584
	Foreign currency		—		—		—			—		374			374
Ivy High Income Fund	Foreign currency		—		—		—			—		282			282
	Interest Rate		—		(107)		—			—		—			(107)
Ivy International Core Equity Fund	Equity		—		—		—			126		—			126
	Foreign currency		—		—		—			—		2,364			2,364

2016 SEMIANNUAL REPORT 201

		Net change in unrealized appreciation (depreciation) on:
Fund	Type of Risk Exposure	Investments in unaffiliated securities*		Swap agreements		Futures contracts		Written options			Forward foreign currency contracts		Total
Ivy Mid Cap Growth Fund	Equity	$	6,104	$	—	$	—	$	(2,107	)	$	—	$	3,997
Ivy Municipal Bond Fund	Interest rate		—		—		77		—			—		77
Ivy Municipal High Income Fund	Interest rate		—		—		637		—			—		637
Ivy Small Cap Growth Fund	Equity		—		3,125		—		—			—		3,125
Ivy Value Fund	Equity		—		—		—		557			—		557

* Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

During the period ended September 30, 2016, the average derivative volume was as follows:

Fund	Forward foreign currency contracts(1)		Long futures contracts(1)		Short futures contracts(1)		Swap agreements(2)		Purchased options(1)		Written options(1)
Ivy Bond Fund	$	—	$	27,297	$	28,051	$	—	$	—	$	—
Ivy Cundill Global Value Fund		473		—		—		—		—		—
Ivy Emerging Markets Equity Fund		164		—		—		—		658		2,084
Ivy European Opportunities Fund		226		—		—		—		—		—
Ivy Global Bond Fund		32		—		—		—		—		—
Ivy Global Equity Income Fund		340		—		—		—		—		—
Ivy Global Growth Fund		7		—		—		—		—		—
Ivy Global Income Allocation Fund		354		—		—		—		267		42
Ivy High Income Fund		115		—		—		9,000		—		—
Ivy International Core Equity Fund		2,680		—		—		—		—		40
Ivy Mid Cap Growth Fund		—		—		—		—		1,439		12,928
Ivy Municipal Bond Fund		—		—		2,788		—		—		—
Ivy Municipal High Income Fund		—		—		23,692		—		—		—
Ivy Small Cap Growth Fund		—		—		—		25,743		—		—
Ivy Value Fund		—		—		—		—		1		486

(1) Average value outstanding during the period.

(2) Average notional amount outstanding during the period.

5. WRITTEN OPTION ACTIVITY ($ amounts in thousands)

Transactions in written options were as follows:

Fund	Outstanding at 3-31-16		Options written		Options closed			Options exercised			Options expired			Outstanding at 9-30-16
Ivy Emerging Markets Equity Fund
Number of Contracts		34,037		2,333,677		(2,348,102	)		—			(17,612	)		2,000
Premium Received	$	4,546	$	4,874	$	(5,561	)	$	—		$	(1,849	)	$	2,010
Ivy Global Equity Income Fund
Number of Contracts		N/A		250		—			(250	)		—			N/A
Premium Received		N/A	$	1,162	$	—		$	(1,162	)	$	—			N/A
Ivy Global Income Allocation Fund
Number of Contracts		4,900		2,850		(4,900	)		(350	)		(2,500	)		N/A
Premium Received	$	523	$	1,674	$	(523	)	$	(1,627	)	$	(47	)		N/A
Ivy International Core Equity Fund
Number of Contracts		876,000		—		(876,000	)		—			—			N/A
Premium Received	$	155	$	—	$	(155	)	$	—		$	—			N/A
Ivy Mid Cap Growth Fund
Number of Contracts		3,093		35,807		(17,767	)		—			(9,113	)		12,020
Premium Received	$	8,982	$	24,667	$	(18,976	)	$	—		$	(1,529	)	$	13,144
Ivy Value Fund
Number of Contracts		3,353		6,977		(1,223	)		(2,980	)		(4,674	)		1,453
Premium Received	$	1,001	$	1,004	$	(527	)	$	(734	)	$	(620	)	$	124

202 SEMIANNUAL REPORT 2016

6. BASIS FOR CONSOLIDATION OF THE IVY EMERGING MARKETS EQUITY FUND

Ivy EME, Ltd. (the “Subsidiary”), a Cayman Islands exempted company, was incorporated as a wholly owned subsidiary acting as an investment vehicle for the Ivy Emerging Markets Equity Fund (referred to as “the Fund” in this subsection). The Subsidiary acts as an investment vehicle for the Fund, in order to effect certain investments for the Fund consistent with the Fund’s investment objectives and policies as specified in its prospectus and SAI. The Fund’s investment portfolio has been consolidated and includes the portfolio holdings of the Fund and its Subsidiary. The consolidated financial statements include the accounts of the Fund and its Subsidiary. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between the Fund and its Subsidiary comprising the entire issued share capital of the Subsidiary with the intent that the Fund will remain the sole shareholder and retain all rights. Under the Articles of Association, shares issued by the Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary.

See the table below for details regarding the structure, incorporation and relationship as of September 30, 2016 of the Subsidiary to the Fund (amounts in thousands).

Subsidiary	Date of Incorporation		Subscription Agreement		Fund Net Assets		Subsidiary Net Assets		Percentage of Fund Net Assets
Ivy EME, Ltd.		1-31-13		4-10-13	$	593,107	$	349		0.06	%

7. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS ($ amounts in thousands unless indicated otherwise)

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 as a percentage of average daily net assets:

Fund (M - Millions)	$0 to $250M			$250 to $500M			$500 to $1,000M			$1,000 to $1,500M			$1,500 to $2,000M			$2,000 to $3,000M			$3,000 to $5,000M			$5,000 to $6,000M			$6,000 to $10,000M			$10,000 to $15,000M			$15,000 to $20,000M			Over $20,000M
Ivy Bond Fund		0.525	%		0.525	%		0.500	%		0.450	%		0.400	%		0.400	%		0.400	%		0.395	%		0.395	%		0.390	%		0.390	%		0.390	%
Ivy Core Equity Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.525			0.500			0.490			0.490			0.490
Ivy Cundill Global Value Fund		1.000			1.000			0.850			0.830			0.830			0.800			0.760			0.730			0.730			0.700			0.700			0.700
Ivy Dividend Opportunities Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.540			0.540			0.530			0.530			0.530
Ivy Emerging Markets Equity Fund		1.000			1.000			0.850			0.830			0.830			0.800			0.760			0.755			0.755			0.750			0.750			0.750
Ivy European Opportunities Fund		0.900			0.850			0.750			0.750			0.750			0.740			0.740			0.720			0.720			0.710			0.710			0.710
Ivy Global Bond Fund		0.625			0.625			0.600			0.550			0.500			0.500			0.500			0.490			0.490			0.480			0.480			0.480
Ivy Global Equity Income Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.545			0.545			0.540			0.540			0.540
Ivy Global Growth Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.700			0.695			0.695			0.690			0.690			0.690
Ivy Global Income Allocation Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.545			0.545			0.540			0.540			0.540
Ivy High Income Fund		0.625			0.625			0.600			0.550			0.500			0.500			0.500			0.500			0.500			0.490			0.490			0.480
Ivy International Core Equity Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.700			0.690			0.690			0.680			0.680			0.680
Ivy Large Cap Growth Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.545			0.545			0.540			0.540			0.540

2016 SEMIANNUAL REPORT 203

Fund (M - Millions)	$0 to $250M		$250 to $500M		$500 to $1,000M		$1,000 to $1,500M		$1,500 to $2,000M		$2,000 to $3,000M		$3,000 to $5,000M		$5,000 to $6,000M		$6,000 to $10,000M		$10,000 to $15,000M		$15,000 to $20,000M		Over $20,000M
Ivy Limited-Term Bond Fund		0.500		0.500		0.450		0.400		0.350		0.350		0.350		0.340		0.340		0.330		0.330		0.330
Ivy Managed International Opportunities Fund		0.050		0.050		0.050		0.050		0.050		0.050		0.050		0.050		0.050		0.050		0.050		0.050
Ivy Micro Cap Growth Fund		0.950		0.950		0.950		0.930		0.930		0.900		0.860		0.830		0.830		0.800		0.800		0.800
Ivy Mid Cap Growth Fund		0.850		0.850		0.850		0.830		0.830		0.800		0.760		0.730		0.730		0.700		0.670		0.670
Ivy Mid Cap Income Opportunities Fund		0.850		0.850		0.850		0.830		0.830		0.800		0.760		0.730		0.730		0.700		0.670		0.670
Ivy Money Market Fund		0.350		0.350		0.350		0.300		0.300		0.300		0.300		0.300		0.300		0.300		0.300		0.300
Ivy Municipal Bond Fund		0.525		0.525		0.500		0.450		0.400		0.400		0.400		0.395		0.395		0.390		0.385		0.385
Ivy Municipal High Income Fund		0.525		0.525		0.500		0.450		0.400		0.400		0.400		0.395		0.395		0.390		0.385		0.385
Ivy Small Cap Growth Fund		0.850		0.850		0.850		0.830		0.830		0.800		0.760		0.730		0.730		0.720		0.720		0.720
Ivy Small Cap Value Fund		0.850		0.850		0.850		0.830		0.830		0.800		0.760		0.730		0.730		0.720		0.720		0.720
Ivy Tax-Managed Equity Fund		0.650		0.650		0.650		0.600		0.600		0.550		0.500		0.495		0.495		0.490		0.490		0.490
Ivy Value Fund		0.700		0.700		0.700		0.650		0.650		0.600		0.550		0.545		0.545		0.540		0.540		0.540

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 period ended September 30, 2016.

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 subadviser to Ivy Cundill Global Value Fund. Under an agreement between IICO and Advantus Capital Management, Inc. (“Advantus”), Advantus serves as subadviser to Ivy Bond Fund. Each subadviser makes investment decisions in accordance with the Fund’s investment objectives, policies and restrictions under the supervision of IICO and the oversight of the Board. IICO pays all applicable costs of the subadvisers.

Accounting Services Fees. The Trust has an Accounting and Administrative Services Agreement with WRSCO, 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 International Opportunities Fund, pays WISC a monthly fee of one-twelfth of the annual fee based on the average net asset levels shown in the following table: 

(M - Millions)	$0 to $10M		$10 to $25M		$25 to $50M		$50 to $100M		$100 to $200M		$200 to $350M		$350 to $550M		$550 to $750M		$750 to $1,000M		Over $1,000M
Annual Fee Rate	$	0.00	$	11.50	$	23.10	$	35.50	$	48.40	$	63.20	$	82.50	$	96.30	$	121.60	$	148.50

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.

204 SEMIANNUAL REPORT 2016

Under the Accounting and Administrative Services Agreement for the Ivy Managed International Opportunities Fund, the Fund pays WISC a monthly fee of one-twelfth of the annual fee shown in the following table:

(M - Millions)	$0 to $10M		$10 to $25M		$25 to $50M		$50 to $100M		$100 to $200M		$200 to $350M		$350 to $550M		$550 to $750M		$750 to $1,000M		Over $1,000M
Annual Fee Rate	$	0.000	$	5.748	$	11.550	$	17.748	$	24.198	$	31.602	$	41.250	$	48.150	$	60.798	$	74.250

In addition, for each class of shares in excess of one, the Ivy Managed International Opportunities Fund pays WISC a monthly per-class fee equal to 1.25% of the monthly accounting services base fee.

Each Fund also pays WISC a monthly administrative 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 and is included in “Accounting services fee” on the Statement of Operations.

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 per account; however, WISC has agreed to reduce that fee if the number of total shareholder accounts within the Complex (Waddell & Reed Advisors Funds, 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 0.25 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. For Class R6 shares, each Fund pays WISC a monthly fee equal to one-twelfth of 0.01 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. The Fund will reimburse WISC for such costs if the annual rate of the third-party per account charges for a Fund are less than or equal to $12.00 per account or an annual fee of 0.14 of 1% that is based on average daily net assets.

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 (up to $18.00 per account), or a fixed rate fee (up to an annual fee of 0.20 of 1% that is based on average daily net assets), based on the average daily NAV 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 1940 Act (the “Distribution and Service Plan”), each Fund, other than Ivy Money Market Fund, may pay a distribution and/or service fee to Ivy Distributors, Inc. (“IDI”) 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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, IDI receives sales commissions (which are not an expense of the Trust) for sales of Class A and Class E shares. A CDSC may be assessed against a shareholder’s redemption amount of

2016 SEMIANNUAL REPORT 205

Class B, Class C or certain Class A and Class E shares and is paid to IDI. During the period ended September 30, 2016, IDI received the following amounts in sales commissions and CDSCs:

	Gross Sales Commissions		CDSC											Commissions Paid(1)
			Class A			Class B			Class C			Class E
Ivy Bond Fund	$	115	$	4		$	6		$	2		$	—	$	109
Ivy Core Equity Fund		132		2			9			3			—		125
Ivy Cundill Global Value Fund		26		—	*		1			—	*		—		25
Ivy Dividend Opportunities Fund		61		—	*		6			2			—		53
Ivy Emerging Markets Equity Fund		95		—	*		3			2			—		105
Ivy European Opportunities Fund		30		1			—	*		3			—		26
Ivy Global Bond Fund		12		1			5			2			N/A		14
Ivy Global Equity Income Fund		51		—	*		1			2			N/A		52
Ivy Global Growth Fund		36		—	*		2			1			—		36
Ivy Global Income Allocation Fund		78		2			8			3			—		78
Ivy High Income Fund		601		4			92			45			—		717
Ivy International Core Equity Fund		183		3			6			28			—		264
Ivy Large Cap Growth Fund		263		10			8			4			—		259
Ivy Limited-Term Bond Fund		588		30			21			5			—		595
Ivy Managed International Opportunities Fund		30		—	*		—	*		—	*		—		28
Ivy Micro Cap Growth Fund		49		—			1			1			N/A		42
Ivy Mid Cap Growth Fund		118		1			16			12			—		136
Ivy Mid Cap Income Opportunities Fund		165		1			N/A			—	*		—		166
Ivy Money Market Fund		—		2			6			3			—		—
Ivy Municipal Bond Fund		46		1			1			1			N/A		48
Ivy Municipal High Income Fund		110		1			14			5			N/A		167
Ivy Small Cap Growth Fund		87		1			5			1			—		88
Ivy Small Cap Value Fund		75		—	*		1			—	*		—		77
Ivy Tax-Managed Equity Fund		23		6			—	*		1			N/A		26
Ivy Value Fund		30		1			2			1			—		27

* Not shown due to rounding.

(1) IDI reallowed/paid this portion of the sales charge to financial advisors and selling broker-dealers.

Expense Reimbursements and/or Waivers. Fund and class expense limitations and related waivers/reimbursements for the period ended September 30, 2016 were as follows:

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement			Expense Reduced
Ivy Bond Fund	Class E	Contractual	1-31-2011	7-31-2017	1.05%		$	4	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—	N/A
Ivy Core Equity Fund	Class A	Contractual	1-11-2013	7-31-2017	1.15%		$	119	12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2017	1.13%(5)		$	12	12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	1-11-2013	7-31-2017	0.84%		$	112	Shareholder Servicing
	Class Y	Contractual	1-11-2013	7-31-2017	0.84%		$	155	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—	N/A

206 SEMIANNUAL REPORT 2016

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Cundill Global Value Fund	All Classes	Contractual	12-3-2012	7-31-2017	N/A		$	145	(1)	Investment Management Fee
	All Classes	Voluntary	N/A	N/A	Reduction of Investment Management Fee		$	21	(2)	Investment Management Fee
	Class E	Contractual	8-1-2008	7-31-2017	1.31%(5)		$	2		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Dividend Opportunities Fund	Class E	Contractual	8-1-2008	7-31-2017	1.13%(5)		$	10		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Emerging Markets Equity Fund	Class A	Contractual	3-17-2014	7-31-2017	1.58%(5)		$	261		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	3-17-2014	7-31-2017	2.50%		$	7		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	3-17-2014	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy European Opportunities Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Global Bond Fund	All Classes	Contractual	6-2-2008	7-31-2017	N/A		$	28	(3)	Investment Management Fee
	Class A	Contractual	6-2-2008	7-31-2017	0.99%		$	150		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-2-2008	7-31-2017	1.74%		$	6		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	6-2-2008	7-31-2017	1.74%		$	18		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-2-2008	7-31-2017	0.74%		$	53		Shareholder Servicing
	Class Y	Contractual	6-2-2008	7-31-2017	0.99%		$	2		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Global Equity Income Fund	Class A	Contractual	6-4-2012	7-31-2017	1.30%		$	71		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-4-2012	7-31-2017	0.94%		$	55		Shareholder Servicing
	Class Y	Contractual	6-4-2012	7-31-2017	1.19%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-4-2012	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Global Growth Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Global Income Allocation Fund	Class E	Contractual	6-4-2012	7-31-2017	1.33%		$	4		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-4-2012	7-31-2017	1.17%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy High Income Fund	Class E	Contractual	8-1-2008	7-31-2017	1.19%(5)		$	5		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A

2016 SEMIANNUAL REPORT 207

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy International Core Equity Fund	Class E	Contractual	8-1-2008	7-31-2017	1.31%(5)		$	9		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Large Cap Growth Fund	Class A	Contractual	6-1-2006	7-31-2017	1.15%		$	127		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2017	1.15%		$	13		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-13-2011	7-31-2017	0.88%		$	37		Shareholder Servicing
	Class Y	Contractual	6-1-2006	7-31-2017	1.06%		$	36		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Limited-Term Bond Fund	Class E	Contractual	8-1-2010	7-31-2017	0.98%(5)		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	1		12b-1 Fees and/or Shareholder Servicing
Ivy Managed International Opportunities Fund	Class A	Contractual	3-17-2014	7-31-2017	0.49%		$	—		N/A
	Class B	Contractual	3-17-2014	7-31-2017	1.40%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	3-17-2014	7-31-2017	1.29%		$	—		N/A
	Class E	Contractual	3-17-2014	7-31-2017	0.39%		$	—		N/A
	Class I	Contractual	3-17-2014	7-31-2017	0.16%		$	—		N/A
	Class R	Contractual	3-17-2014	7-31-2017	0.72%		$	—		N/A
	Class Y	Contractual	3-17-2014	7-31-2017	0.38%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	3-17-2014	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Micro Cap Growth Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Mid Cap Growth Fund	Class A	Contractual	8-1-2014	7-31-2017	1.31%		$	186		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2017	1.30%		$	13		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed		$	—		N/A
Ivy Mid Cap Income Opportunities Fund	All Classes	Contractual	10-1-2014	7-31-2017	N/A		$	—		Investment Management Fee
	Class A	Contractual	10-1-2014	7-31-2017	1.35%		$	50		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	10-1-2014	7-31-2017	2.07%		$	3		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	10-1-2014	7-31-2017	1.30%		$	—		N/A
	Class I	Contractual	10-1-2014	7-31-2017	1.05%		$	22		Shareholder Servicing
	Class R	Contractual	10-1-2014	7-31-2017	1.80%		$	—		N/A
	Class R6	Contractual	10-1-2014	7-31-2017	1.05%		$	—		N/A
	Class Y	Contractual	10-1-2014	7-31-2017	1.35%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	10-1-2014	7-31-2017	Not to exceed Class A		$	—		N/A

208 SEMIANNUAL REPORT 2016

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Money Market Fund	Class A	Voluntary	N/A	N/A	To maintain minimum yield(4)		$	51		12b-1 Fees and/or Shareholder Servicing
	Class B	Voluntary	N/A	N/A	To maintain minimum yield(4)		$	31		12b-1 Fees and/or Shareholder Servicing
	Class C	Voluntary	N/A	N/A	To maintain minimum yield(4)		$	197		12b-1 Fees and/or Shareholder Servicing
	Class E	Voluntary	N/A	N/A	To maintain minimum yield(4)		$	4		12b-1 Fees and/or Shareholder Servicing
Ivy Municipal Bond Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Municipal High Income Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	7		12b-1 Fees and/or Shareholder Servicing
Ivy Small Cap Growth Fund	Class E	Contractual	8-1-2008	7-31-2017	1.43%(5)		$	9		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Small Cap Value Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A
Ivy Tax-Managed Equity Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Value Fund	Class Y	Contractual	8-1-2011	7-31-2017	Not to exceed Class A		$	—		N/A

* Not shown due to rounding.

(1) The Fund’s management fee is being reduced by 0.16% of average daily net assets.

(2) The Fund’s management fee is being reduced by 0.02% of average daily net assets.

(3) Due to Class A, Class B, Class C, Class E, Class I, Class R, Class R6, and/or Class Y contractual expense limits, investment management fees were waived for all share classes.

(4) Minimum yield was 0.02% throughout the period of this report.

(5) Reflects the lower expense limit which went into effect August 1, 2016.

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2016 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

8. RELATED PARTY TRANSACTIONS

Certain Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees or common officers, complies with Rule 17a-7 under the Act. Further, as defined under such procedures, each transaction is effected at the current market price. During the period ended September 30, 2016, the Funds below engaged in purchases and sales of securities pursuant to Rule 17a-7 under the Act (amounts in thousands):

Fund	Purchases		Sales
Ivy Global Bond Fund	$	—	$	1,533
Ivy High Income Fund		—		95,979
Ivy International Core Equity Fund		—		1,314
Ivy Limited-Term Bond Fund		8,676		—

9. INTERFUND LENDING PROGRAM

Pursuant to an exemptive order issued by the SEC (“Order”), the Trust and the Advisors Fund Complex (Waddell & Reed Advisors Funds, Ivy Funds Variable Insurance Portfolios and InvestEd Portfolios; referred to with the Funds for purposes of

2016 SEMIANNUAL REPORT 209

this section as Funds) have the ability to lend money to, and borrow money from, each other pursuant to a master interfund lending agreement (“Interfund Lending Program”). Under the Interfund Lending Program, the Funds may lend or borrow money for temporary purposes directly to or from one another (each an “Interfund Loan”), subject to meeting the conditions of the Order. The interest rate to be charged on an Interfund Loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The Funds made no Interfund Loans under the Interfund Lending Program during the period ended September 30, 2016.

10. AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands)

A summary of the transactions in affiliated companies during the period ended September 30, 2016 follows:

Fund	3-31-16 Share Balance		Purchases at cost		Sales at Cost		Realized Gain/(Loss)		Distributions Received		9-30-16 Share Balance		9-30-16 Value
Ivy High Income Fund
Maritime Finance Co. Ltd.		1,750	$	—	$	—	$	—	$	—		1,750	$	15,277
Ivy Municipal High Income Fund
1155 Island Avenue LLC		6,578	$	—	$	—	$	—	$	—		6,578	$	1,250
	3-31-16 Principal Balance								Interest Received		9-30-16 Principal Balance
1155 Island Avenue LLC, 10.000%, 12-11-24	$	395	$	—	$	—	$	—	$	19	$	395	$	395
1155 Island Avenue LLC, 10.000%, 12-11-24		2,960		—		—		—		147		2,960		2,960
							$	—	$	166			$	4,605
	3-31-16 Share Balance		Purchases at cost		Sales at Cost		Realized Gain/(Loss)(1)		Distributions Received		9-30-16 Share Balance		9-30-16 Value
Ivy Managed International Opportunities Fund
Ivy Emerging Markets Equity Fund, Class I		1,397	$	59	$	1,609	$	1,382	$	—		1,204	$	19,380
Ivy European Opportunities Fund, Class I		1,435		2,317		2,318		719		—		1,410		38,761
Ivy Global Growth Fund, Class I		1,276		462		3,059		1,329		—		1,178		48,451
Ivy Global Income Allocation Fund, Class I		2,201		1,303		3,216		936		738		2,001		29,070
Ivy International Core Equity Fund, Class I		3,620		1,465		3,635		1,259		—		3,416		58,141
							$	5,625	$	738			$	193,803

(1) Included in Realized Gain/Loss, if applicable, are distributions from the capital gains from the underlying securities.

11. INVESTMENT SECURITIES TRANSACTIONS ($ amounts in thousands)

The cost of purchases and the proceeds from maturities and sales of investment securities (excluding short-term securities) for the period ended September 30, 2016, were as follows:

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Bond Fund	$	605,255	$	257,717	$	659,683	$	227,783
Ivy Core Equity Fund		—		338,615		—		490,067
Ivy Cundill Global Value Fund		—		84,559		—		106,720
Ivy Dividend Opportunities Fund		—		74,358		—		79,993
Ivy Emerging Markets Equity Fund		—		247,538		—		190,970
Ivy European Opportunities Fund		—		87,751		—		111,020
Ivy Global Bond Fund		—		7,458		2,013		20,223
Ivy Global Equity Income Fund		—		190,861		—		133,819
Ivy Global Growth Fund		—		117,748		—		152,920
Ivy Global Income Allocation Fund		—		255,231		2,957		271,065
Ivy High Income Fund		—		870,030		—		961,108
Ivy International Core Equity Fund		—		1,506,935		—		1,669,313
Ivy Large Cap Growth Fund		—		351,098		—		432,910
Ivy Limited-Term Bond Fund		121,350		534,531		165,048		471,953
Ivy Managed International Opportunities Fund		—		5,606		—		19,462
Ivy Micro Cap Growth Fund		—		25,544		—		53,805
Ivy Mid Cap Growth Fund		—		106,449		—		800,661

210 SEMIANNUAL REPORT 2016

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Mid Cap Income Opportunities Fund	$	—	$	119,097	$	—	$	36,928
Ivy Money Market Fund		—		—		—		—
Ivy Municipal Bond Fund		—		18,090		—		2,527
Ivy Municipal High Income Fund		—		73,449		—		36,900
Ivy Small Cap Growth Fund		—		174,548		—		280,820
Ivy Small Cap Value Fund		—		270,954		—		242,102
Ivy Tax-Managed Equity Fund		—		27,056		—		29,826
Ivy Value Fund		—		86,471		—		84,836

12. CAPITAL SHARE TRANSACTIONS (All amounts in thousands)

The Trust has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class of each Fund. Transactions in shares of beneficial interest were as follows:

	Ivy Bond Fund												Ivy Core Equity Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		6,502		$	69,160			23,299		$	245,091			3,020		$	39,436			11,640		$	156,225
Class B		86			924			281			2,936			58			649			137			1,546
Class C		628			6,718			1,574			16,461			485			5,554			1,662			19,826
Class E		130			1,394			93			969			107			1,403			202			2,753
Class I		48,217			516,702			1,085			11,345			17,071			237,865			3,045			46,161
Class R		147			1,567			265			2,758			26			332			64			866
Class R6		60			639			42			439			122			1,742			11,043			161,909
Class Y		265			2,837			240			2,508			547			7,690			3,556			53,138
Shares issued in reinvestment of distributions to shareholders:
Class A		448			4,776			1,591			16,732			—			—			2,966			38,712
Class B		4			41			7			75			—			—			57			637
Class C		22			239			35			371			—			—			798			9,173
Class E		5			53			8			88			—			—			54			698
Class I		310			3,362			18			184			—			—			784			11,279
Class R		3			37			1			12			—			—			8			106
Class R6		2			24			4			36			—			—			206			2,965
Class Y		5			53			6			64			—			—			434			6,089
Shares redeemed:
Class A		(51,513	)		(551,015	)		(22,504	)		(236,276	)		(23,294	)		(295,826	)		(14,467	)		(195,349	)
Class B		(146	)		(1,571	)		(222	)		(2,331	)		(182	)		(2,037	)		(220	)		(2,543	)
Class C		(607	)		(6,505	)		(1,019	)		(10,729	)		(1,522	)		(17,518	)		(3,585	)		(42,806	)
Class E		(80	)		(862	)		(73	)		(769	)		(73	)		(960	)		(147	)		(1,988	)
Class I		(4,384	)		(47,445	)		(456	)		(4,796	)		(3,287	)		(47,868	)		(6,558	)		(96,316	)
Class R		(79	)		(853	)		(16	)		(163	)		(17	)		(224	)		(49	)		(644	)
Class R6		(46	)		(500	)		(20	)		(212	)		(3,251	)		(47,589	)		(910	)		(12,997	)
Class Y		(61	)		(661	)		(205	)		(2,153	)		(2,644	)		(36,770	)		(2,612	)		(37,844	)
Net increase (decrease)		(82	)	$	(886	)		4,034		$	42,640			(12,834	)	$	(154,121	)		8,108		$	121,596

2016 SEMIANNUAL REPORT 211

	Ivy Cundill Global Value Fund												Ivy Dividend Opportunities Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		420		$	6,082			1,882		$	29,068			1,672		$	29,292			3,370		$	61,029
Class B		1			10			4			52			40			690			42			741
Class C		18			250			255			3,443			231			4,023			471			8,150
Class E		1			17			8			128			38			668			41			745
Class I		6,135			85,843			179			2,806			8,716			150,439			263			4,757
Class R		—	*		2			1			11			9			154			6			104
Class R6		7			112			5			77			91			1,603			18			315
Class Y		7			103			97			1,529			21			379			72			1,321
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			120			1,767			85			1,485			1,419			24,638
Class B		—			—			—			—			1			9			37			630
Class C		—			—			3			43			4			75			190			3,257
Class E		—			—			—	*		7			2			37			27			459
Class I		—			—			4			56			36			632			62			1,083
Class R		—			—			—	*		—	*		—	*		—	*		—			—
Class R6		—			—			1			19			1			17			2			25
Class Y		—			—			2			33			2			44			36			633
Shares redeemed:
Class A		(7,601	)		(105,148	)		(6,051	)		(94,160	)		(9,687	)		(166,599	)		(5,019	)		(91,393	)
Class B		(20	)		(269	)		(59	)		(832	)		(76	)		(1,307	)		(198	)		(3,524	)
Class C		(182	)		(2,503	)		(352	)		(5,040	)		(446	)		(7,735	)		(862	)		(15,431	)
Class E		(6	)		(85	)		(18	)		(285	)		(38	)		(675	)		(49	)		(879	)
Class I		(697	)		(10,432	)		(193	)		(3,013	)		(882	)		(15,751	)		(223	)		(4,037	)
Class R		—	*		—	*		(1	)		(17	)		(4	)		(67	)		—	*		(1	)
Class R6		(10	)		(150	)		(21	)		(312	)		(14	)		(251	)		(7	)		(130	)
Class Y		(42	)		(622	)		(91	)		(1,443	)		(105	)		(1,853	)		(192	)		(3,558	)
Net decrease		(1,969	)	$	(26,790	)		(4,225	)	$	(66,063	)		(303	)	$	(4,691	)		(494	)	$	(11,066	)

* Not shown due to rounding.

212 SEMIANNUAL REPORT 2016

	Ivy Emerging Markets Equity Fund												Ivy European Opportunities Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,309		$	32,711			8,831		$	131,784			298		$	7,864			2,619		$	74,855
Class B		27			337			50			595			1			14			8			222
Class C		265			3,333			1,045			13,754			8			211			227			6,249
Class E		—			—			—			—			—			—			—			—
Class I		11,656			165,420			12,674			195,097			2,870			72,116			1,086			31,972
Class R		219			3,101			351			4,898			—	*		14			6			179
Class R6		118			1,713			293			4,234			4			101			17			485
Class Y		823			12,006			1,450			23,215			3			93			99			3,011
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			248			3,341			—			—			21			600
Class B		—			—			2			26			—			—			—			—
Class C		—			—			16			189			—			—			—			—
Class E		—			—			—	*		1			—			—			—	*		—	*
Class I		—			—			75			1,033			—			—			11			311
Class R		—			—			—	*		4			—			—			—	*		—	*
Class R6		—			—			5			65			—			—			1			15
Class Y		—			—			5			71			—			—			—	*		5
Shares redeemed:
Class A		(12,107	)		(165,195	)		(9,794	)		(139,261	)		(3,587	)		(90,402	)		(1,469	)		(41,023	)
Class B		(59	)		(699	)		(158	)		(1,893	)		(9	)		(218	)		(23	)		(627	)
Class C		(432	)		(5,377	)		(822	)		(10,141	)		(97	)		(2,425	)		(128	)		(3,392	)
Class E		—			—			—			—			—			—			—			—
Class I		(3,998	)		(59,683	)		(11,619	)		(174,048	)		(525	)		(14,031	)		(405	)		(11,483	)
Class R		(82	)		(1,205	)		(42	)		(548	)		—	*		(6	)		(1	)		(17	)
Class R6		(119	)		(1,802	)		(155	)		(2,203	)		(17	)		(455	)		(21	)		(557	)
Class Y		(272	)		(3,958	)		(1,337	)		(18,573	)		(9	)		(244	)		(128	)		(3,659	)
Net increase (decrease)		(1,652	)	$	(19,298	)		1,118		$	31,640			(1,060	)	$	(27,368	)		1,920		$	57,146

* Not shown due to rounding.

2016 SEMIANNUAL REPORT 213

	Ivy Global Bond Fund												Ivy Global Equity Income Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,036		$	9,685			5,031		$	46,635			3,782		$	45,727			6,756		$	84,231
Class B		15			142			38			348			16			194			28			342
Class C		105			989			401			3,728			119			1,449			488			6,120
Class I		7,601			71,047			860			8,063			20,480			238,772			192			2,330
Class R		12			115			9			82			1			7			10			122
Class R6		284			2,653			22			204			20			249			32			400
Class Y		24			230			98			927			4			55			36			441
Shares issued in reinvestment of distributions to shareholders:
Class A		89			831			437			4,066			356			4,177			1,215			14,810
Class B		2			14			7			61			1			13			3			30
Class C		9			88			43			396			13			153			35			420
Class I		54			509			96			895			205			2,457			14			172
Class R		—	*		2			1			5			—	*		2			—	*		—	*
Class R6		2			19			1			4			2			28			6			70
Class Y		3			24			11			102			1			6			2			28
Shares redeemed:
Class A		(9,308	)		(86,968	)		(9,393	)		(87,177	)		(18,629	)		(215,986	)		(6,131	)		(75,975	)
Class B		(64	)		(599	)		(197	)		(1,858	)		(16	)		(190	)		(14	)		(168	)
Class C		(449	)		(4,212	)		(1,441	)		(13,365	)		(220	)		(2,672	)		(343	)		(4,103	)
Class I		(1,425	)		(13,440	)		(4,027	)		(37,203	)		(1,381	)		(16,770	)		(137	)		(1,672	)
Class R		(4	)		(36	)		(6	)		(56	)		(2	)		(29	)		—	*		(2	)
Class R6		(51	)		(486	)		(4	)		(33	)		(8	)		(101	)		(47	)		(582	)
Class Y		(34	)		(322	)		(368	)		(3,438	)		(24	)		(294	)		(18	)		(219	)
Net increase (decrease)		(2,099	)	$	(19,715	)		(8,381	)	$	(77,614	)		4,720		$	57,247			2,127		$	26,795

* Not shown due to rounding.

214 SEMIANNUAL REPORT 2016

	Ivy Global Growth Fund												Ivy Global Income Allocation Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		493		$	19,413			2,437		$	99,367			2,957		$	41,844			13,167		$	191,276
Class B		3			111			18			637			20			282			57			780
Class C		95			3,246			172			6,157			616			8,679			2,488			35,063
Class E		—			—			—			—			19			276			41			598
Class I		6,483			247,649			891			37,653			29,355			404,659			3,168			46,828
Class R		14			536			43			1,729			1			6			—	*		4
Class R6		167			6,530			13			541			11			162			26			378
Class Y		80			3,133			334			13,390			6			92			69			982
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			207			8,411			722			10,063			1,768			25,448
Class B		—			—			2			62			5			71			9			133
Class C		—			—			15			515			61			838			108			1,527
Class E		—			—			—	*		3			4			61			7			108
Class I		—			—			45			1,859			375			5,378			157			2,254
Class R		—			—			1			32			—	*		—	*		—			—
Class R6		—			—			1			60			3			38			5			70
Class Y		—			—			4			160			2			29			5			68
Shares redeemed:
Class A		(7,094	)		(267,732	)		(2,616	)		(107,243	)		(32,667	)		(447,905	)		(12,751	)		(181,779	)
Class B		(20	)		(672	)		(48	)		(1,722	)		(70	)		(973	)		(102	)		(1,445	)
Class C		(118	)		(4,083	)		(159	)		(5,736	)		(774	)		(10,863	)		(2,116	)		(29,195	)
Class E		—			—			—			—			(32	)		(455	)		(31	)		(438	)
Class I		(920	)		(36,619	)		(764	)		(31,579	)		(2,994	)		(43,076	)		(1,986	)		(28,001	)
Class R		(6	)		(241	)		(12	)		(474	)		—	*		(1	)		—	*		—	*
Class R6		(28	)		(1,103	)		(8	)		(319	)		(22	)		(317	)		(14	)		(206	)
Class Y		(134	)		(5,294	)		(172	)		(7,182	)		(44	)		(625	)		(111	)		(1,600	)
Net increase (decrease)		(985	)	$	(35,126	)		404		$	16,321			(2,446	)	$	(31,737	)		3,964		$	62,853

* Not shown due to rounding.

2016 SEMIANNUAL REPORT 215

	Ivy High Income Fund												Ivy International Core Equity Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		29,830		$	214,019			78,014		$	586,497			8,399		$	136,012			40,471		$	696,382
Class B		272			1,961			445			3,270			74			1,085			157			2,413
Class C		9,519			68,422			24,085			181,242			1,491			21,574			10,221			159,550
Class E		191			1,375			228			1,704			30			487			98			1,695
Class I		101,694			726,721			97,027			721,563			70,276			1,106,636			76,156			1,300,207
Class R		957			6,884			2,923			22,122			638			10,312			1,464			25,019
Class R6		936			6,768			7,573			55,816			6,072			99,369			17,878			307,722
Class Y		10,125			72,579			25,565			191,403			5,286			85,934			17,363			293,941
Shares issued in reinvestment of distributions to shareholders:
Class A		7,523			54,256			22,497			168,026			—			—			739			12,239
Class B		316			2,280			769			5,736			—			—			1			15
Class C		3,990			28,812			9,665			72,161			—			—			42			630
Class E		45			329			89			658			—			—			2			34
Class I		6,576			47,621			15,391			115,649			—			—			1,035			17,216
Class R		317			2,290			574			4,247			—			—			8			130
Class R6		272			1,959			345			2,473			—			—			143			2,391
Class Y		1,682			12,145			4,317			32,379			—			—			259			4,320
Shares redeemed:
Class A		(114,652	)		(818,878	)		(191,909	)		(1,411,639	)		(59,581	)		(923,438	)		(22,721	)		(381,922	)
Class B		(1,447	)		(10,419	)		(5,530	)		(40,731	)		(133	)		(1,921	)		(290	)		(4,357	)
Class C		(24,079	)		(173,308	)		(85,521	)		(632,034	)		(3,422	)		(49,615	)		(3,016	)		(44,667	)
Class E		(173	)		(1,248	)		(368	)		(2,717	)		(41	)		(683	)		(46	)		(775	)
Class I		(61,411	)		(442,244	)		(241,309	)		(1,787,156	)		(28,075	)		(460,289	)		(34,754	)		(574,949	)
Class R		(989	)		(7,145	)		(1,679	)		(12,357	)		(240	)		(3,911	)		(287	)		(4,714	)
Class R6		(3,127	)		(22,400	)		(1,589	)		(11,717	)		(2,150	)		(35,379	)		(1,222	)		(20,416	)
Class Y		(16,552	)		(119,206	)		(62,673	)		(471,947	)		(17,761	)		(297,269	)		(11,273	)		(192,331	)
Net increase (decrease)		(48,185	)	$	(346,427	)		(301,071	)	$	(2,205,352	)		(19,137	)	$	(311,096	)		92,428		$	1,599,773

216 SEMIANNUAL REPORT 2016

	Ivy Large Cap Growth Fund												Ivy Limited-Term Bond Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		4,404		$	79,041			22,690		$	422,491			19,274		$	210,096			60,281		$	651,914
Class B		93			1,348			316			4,670			181			1,968			492			5,300
Class C		629			9,688			2,566			41,121			993			10,847			6,384			69,015
Class E		55			992			216			4,018			146			1,592			165			1,788
Class I		39,274			706,517			2,620			50,301			88,904			973,067			4,230			45,749
Class R		86			1,513			397			7,152			33			358			45			486
Class R6		23			426			117			2,226			8,161			89,046			86			930
Class Y		188			3,462			1,282			23,505			684			7,481			488			5,279
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			3,824			70,292			750			8,182			1,895			20,500
Class B		—			—			52			764			5			50			6			63
Class C		—			—			343			5,435			43			466			63			683
Class E		—			—			37			682			3			37			4			48
Class I		—			—			839			16,061			419			4,589			57			619
Class R		—			—			73			1,300			—	*		2			—	*		4
Class R6		—			—			21			404			47			520			4			44
Class Y		—			—			389			7,300			13			142			21			224
Shares redeemed:
Class A		(45,211	)		(782,442	)		(15,764	)		(290,567	)		(104,618	)		(1,144,066	)		(53,618	)		(580,153	)
Class B		(162	)		(2,340	)		(369	)		(5,561	)		(282	)		(3,087	)		(475	)		(5,141	)
Class C		(1,014	)		(15,750	)		(1,413	)		(22,339	)		(2,806	)		(30,691	)		(5,395	)		(58,403	)
Class E		(80	)		(1,460	)		(68	)		(1,253	)		(70	)		(771	)		(124	)		(1,341	)
Class I		(5,125	)		(97,693	)		(4,658	)		(89,023	)		(8,065	)		(88,378	)		(3,190	)		(34,508	)
Class R		(161	)		(2,832	)		(551	)		(10,130	)		(48	)		(526	)		(18	)		(200	)
Class R6		(378	)		(6,962	)		(71	)		(1,336	)		(612	)		(6,705	)		(180	)		(1,950	)
Class Y		(764	)		(14,060	)		(1,474	)		(27,657	)		(300	)		(3,281	)		(960	)		(10,390	)
Net increase (decrease)		(8,143	)	$	(120,552	)		11,414		$	209,856			2,855		$	30,938			10,261		$	110,560

* Not shown due to rounding.

2016 SEMIANNUAL REPORT 217

	Ivy Managed International Opportunities Fund												Ivy Micro Cap Growth Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		770		$	7,309			3,639		$	36,592			490		$	9,988			1,695		$	37,277
Class B		1			6			15			156			2			44			11			228
Class C		45			419			109			1,109			23			457			85			1,882
Class E		—			—			—			—			N/A			N/A			N/A			N/A
Class I		12,074			110,605			106			1,063			3,093			63,257			236			5,407
Class R		2			23			—	*		2			1			29			6			128
Class R6		N/A			N/A			N/A			N/A			21			450			46			1,032
Class Y		4			38			67			722			8			178			13			317
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			148			1,431			—			—			305			6,384
Class B		—			—			—	*		1			—			—			4			72
Class C		—			—			1			7			—			—			18			359
Class E		—			—			—	*		3			N/A			N/A			N/A			N/A
Class I		—			—			1			14			—			—			25			528
Class R		—			—			—			—			—			—			—	*		9
Class R6		N/A			N/A			N/A			N/A			—			—			5			99
Class Y		—			—			1			6			—			—			2			44
Shares redeemed:
Class A		(13,209	)		(120,873	)		(5,441	)		(54,517	)		(3,970	)		(79,332	)		(2,857	)		(63,357	)
Class B		(38	)		(352	)		(82	)		(800	)		(9	)		(172	)		(26	)		(521	)
Class C		(83	)		(782	)		(122	)		(1,172	)		(70	)		(1,343	)		(157	)		(3,299	)
Class E		—			—			—			—			N/A			N/A			N/A			N/A
Class I		(1,072	)		(10,531	)		(114	)		(1,138	)		(666	)		(14,713	)		(531	)		(12,299	)
Class R		(1	)		(6	)		—			—			(8	)		(165	)		(3	)		(62	)
Class R6		N/A			N/A			N/A			N/A			(45	)		(961	)		(41	)		(857	)
Class Y		(16	)		(152	)		(155	)		(1,622	)		(15	)		(354	)		(43	)		(994	)
Net increase (decrease)		(1,523	)	$	(14,296	)		(1,827	)	$	(18,143	)		(1,145	)	$	(22,637	)		(1,207	)	$	(27,623	)

* Not shown due to rounding.

218 SEMIANNUAL REPORT 2016

	Ivy Mid Cap Growth Fund												Ivy Mid Cap Income Opportunities Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,365		$	46,333			10,174		$	216,107			6,808		$	77,748			6,690		$	70,300
Class B		54			887			121			2,107			N/A			N/A			N/A			N/A
Class C		570			9,940			3,205			60,931			692			8,105			207			2,157
Class E		32			625			75			1,556			202			2,449			—			—
Class I		14,637			303,642			25,264			563,891			9,111			103,837			119			1,283
Class R		291			5,638			1,173			24,509			202			2,443			—			—
Class R6		1,626			34,478			4,973			105,259			261			3,127			38			408
Class Y		1,392			28,485			6,442			141,675			822			9,726			148			1,505
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			4,329			82,637			30			346			82			845
Class B		—			—			129			2,046			N/A			N/A			N/A			N/A
Class C		—			—			1,552			26,145			1			6			1			12
Class E		—			—			38			705			—			—			—			—
Class I		—			—			9,144			185,349			32			374			1			10
Class R		—			—			321			6,036			—			—			—			—
Class R6		—			—			253			5,136			1			5			1			9
Class Y		—			—			2,116			41,960			1			8			2			16
Shares redeemed:
Class A		(17,752	)		(345,661	)		(16,775	)		(344,854	)		(8,340	)		(93,925	)		(1,911	)		(19,748	)
Class B		(142	)		(2,320	)		(282	)		(4,824	)		N/A			N/A			N/A			N/A
Class C		(2,963	)		(51,333	)		(5,373	)		(96,246	)		(227	)		(2,726	)		(71	)		(732	)
Class E		(35	)		(671	)		(57	)		(1,121	)		(201	)		(2,429	)		—			—
Class I		(22,043	)		(463,078	)		(82,134	)		(1,749,180	)		(1,598	)		(18,959	)		(155	)		(1,615	)
Class R		(994	)		(19,318	)		(1,860	)		(38,728	)		(201	)		(2,423	)		—			—
Class R6		(1,479	)		(31,169	)		(2,486	)		(49,938	)		(239	)		(2,876	)		(10	)		(107	)
Class Y		(7,571	)		(154,693	)		(13,715	)		(292,957	)		(337	)		(4,041	)		(70	)		(698	)
Net decrease		(32,012	)	$	(638,215	)		(53,373	)	$	(1,111,799	)		7,020		$	80,795			5,072		$	53,645

2016 SEMIANNUAL REPORT 219

	Ivy Money Market Fund												Ivy Municipal Bond Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		96,559		$	96,559			200,299		$	200,299			2,027		$	24,819			6,586		$	79,089
Class B		1,090			1,090			6,630			6,630			25			306			67			803
Class C		14,242			14,242			74,816			74,816			203			2,481			1,044			12,558
Class E		2,542			2,542			4,778			4,778			N/A			N/A			N/A			N/A
Class I		N/A			N/A			N/A			N/A			9,398			115,688			401			4,822
Class R		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class R6		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A			13			163			17			202
Shares issued in reinvestment of distributions to shareholders:
Class A		14			14			27			27			98			1,192			271			3,249
Class B		—			—			1			1			1			12			2			24
Class C		4			4			7			7			15			182			28			333
Class E		1			1			1			1			N/A			N/A			N/A			N/A
Class I		N/A			N/A			N/A			N/A			54			666			11			128
Class R		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class R6		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A			—	*		4			—	*		7
Shares redeemed:
Class A		(116,442	)		(116,442	)		(152,973	)		(152,973	)		(9,802	)		(120,612	)		(3,982	)		(47,689	)
Class B		(2,924	)		(2,924	)		(4,587	)		(4,587	)		(26	)		(320	)		(56	)		(665	)
Class C		(22,566	)		(22,566	)		(62,687	)		(62,687	)		(265	)		(3,247	)		(506	)		(6,075	)
Class E		(2,486	)		(2,486	)		(3,388	)		(3,388	)		N/A			N/A			N/A			N/A
Class I		N/A			N/A			N/A			N/A			(822	)		(10,088	)		(109	)		(1,304	)
Class R		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class R6		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A			(11	)		(142	)		(4	)		(48	)
Net increase		(29,966	)	$	(29,966	)		62,924		$	62,924			908		$	11,104			3,770		$	45,434

* Not shown due to rounding.

220 SEMIANNUAL REPORT 2016

	Ivy Municipal High Income Fund												Ivy Small Cap Growth Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		9,837		$	52,669			25,667		$	135,057			1,397		$	21,601			5,298		$	89,117
Class B		78			416			199			1,048			26			317			43			591
Class C		2,960			15,813			8,691			45,804			259			3,417			969			14,100
Class E		N/A			N/A			N/A			N/A			43			680			73			1,236
Class I		31,574			169,458			33,698			177,247			6,332			121,103			2,453			50,180
Class R		N/A			N/A			N/A			N/A			285			4,411			856			14,412
Class R6		N/A			N/A			N/A			N/A			1,325			25,016			358			7,264
Class Y		453			2,426			1,496			7,875			1,221			23,176			2,420			47,994
Shares issued in reinvestment of distributions to shareholders:
Class A		1,135			6,072			2,451			12,890			—			—			2,951			45,529
Class B		24			129			49			256			—			—			115			1,393
Class C		528			2,826			1,011			5,318			—			—			1,939			25,307
Class E		N/A			N/A			N/A			N/A			—			—			53			815
Class I		2,124			11,381			3,803			19,997			—			—			872			16,860
Class R		N/A			N/A			N/A			N/A			—			—			339			5,161
Class R6		N/A			N/A			N/A			N/A			—			—			122			2,371
Class Y		67			358			135			708			—			—			1,312			24,207
Shares redeemed:
Class A		(25,169	)		(135,164	)		(25,405	)		(133,482	)		(9,502	)		(144,957	)		(6,796	)		(112,319	)
Class B		(218	)		(1,165	)		(408	)		(2,144	)		(79	)		(959	)		(197	)		(2,566	)
Class C		(5,619	)		(30,077	)		(9,790	)		(51,467	)		(1,580	)		(20,911	)		(2,358	)		(33,616	)
Class E		N/A			N/A			N/A			N/A			(34	)		(538	)		(46	)		(731	)
Class I		(20,805	)		(111,389	)		(37,399	)		(196,480	)		(3,103	)		(60,200	)		(3,613	)		(72,765	)
Class R		N/A			N/A			N/A			N/A			(445	)		(6,918	)		(760	)		(12,435	)
Class R6		N/A			N/A			N/A			N/A			(264	)		(5,194	)		(210	)		(4,275	)
Class Y		(1,190	)		(6,367	)		(1,642	)		(8,614	)		(1,590	)		(29,759	)		(4,142	)		(82,260	)
Net increase (decrease)		(4,221	)	$	(22,614	)		2,556		$	14,013			(5,709	)	$	(69,715	)		2,051		$	25,570

2016 SEMIANNUAL REPORT 221

	Ivy Small Cap Value Fund												Ivy Tax-Managed Equity Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16						Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,950		$	46,137			1,815		$	28,296			480		$	9,145			3,510		$	68,310
Class B		55			725			9			109			6			106			25			478
Class C		269			3,754			196			2,695			42			771			214			3,999
Class E		—			—			—			—			N/A			N/A			N/A			N/A
Class I		6,277			103,190			283			4,756			3,720			69,247			211			4,081
Class R		67			1,040			89			1,395			N/A			N/A			N/A			N/A
Class R6		74			1,247			58			951			N/A			N/A			N/A			N/A
Class Y		267			4,449			256			4,274			1			20			6			124
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			1,826			25,741			—			—			94			1,840
Class B		—			—			31			361			—			—			—	*		5
Class C		—			—			163			2,028			—			—			4			69
Class E		—			—			1			18			N/A			N/A			N/A			N/A
Class I		—			—			185			2,797			—			—			4			73
Class R		—			—			20			280			N/A			N/A			N/A			N/A
Class R6		—			—			28			426			N/A			N/A			N/A			N/A
Class Y		—			—			55			807			—			—			—	*		7
Shares redeemed:
Class A		(6,944	)		(105,445	)		(3,934	)		(61,834	)		(4,194	)		(77,540	)		(1,522	)		(28,839	)
Class B		(29	)		(365	)		(64	)		(834	)		(7	)		(132	)		(21	)		(392	)
Class C		(137	)		(1,885	)		(372	)		(5,135	)		(57	)		(1,051	)		(44	)		(814	)
Class E		—			—			—			—			N/A			N/A			N/A			N/A
Class I		(772	)		(13,291	)		(427	)		(6,960	)		(353	)		(6,907	)		(155	)		(2,960	)
Class R		(19	)		(297	)		(37	)		(577	)		N/A			N/A			N/A			N/A
Class R6		(50	)		(833	)		(31	)		(503	)		N/A			N/A			N/A			N/A
Class Y		(79	)		(1,273	)		(354	)		(5,977	)		(5	)		(98	)		(20	)		(383	)
Net increase (decrease)		1,929		$	37,153			(204	)	$	(6,886	)		(367	)	$	(6,439	)		2,306		$	45,598

* Not shown due to rounding.

222 SEMIANNUAL REPORT 2016

	Ivy Value Fund
	Six months ended 9-30-16 (Unaudited)						Year ended 3-31-16
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		883		$	17,618			2,974		$	64,213
Class B		15			273			34			693
Class C		53			1,017			293			6,025
Class E		—			—			—			—
Class I		7,361			142,048			125			2,804
Class R		—	*		4			1			8
Class R6		259			5,097			35			770
Class Y		86			1,768			23			495
Shares issued in reinvestment of distributions to shareholders:
Class A		114			2,224			1,436			29,148
Class B		1			13			19			364
Class C		5			101			100			1,969
Class E		—	*		2			1			18
Class I		26			532			43			871
Class R		—	*		—	*		—	*		1
Class R6		5			92			9			177
Class Y		—	*		9			3			67
Shares redeemed:
Class A		(8,454	)		(163,346	)		(4,471	)		(99,830	)
Class B		(42	)		(792	)		(83	)		(1,747	)
Class C		(150	)		(2,905	)		(410	)		(8,681	)
Class E		—			—			—			—
Class I		(686	)		(14,010	)		(437	)		(10,011	)
Class R		—			—			—	*		—	*
Class R6		(44	)		(905	)		(5	)		(102	)
Class Y		(12	)		(231	)		(67	)		(1,551	)
Net decrease		(580	)	$	(11,391	)		(377	)	$	(14,299	)

* Not shown due to rounding.

13. COMMITMENTS

Bridge loan commitments may obligate a Fund to furnish temporary financing to a borrower until permanent financing can be arranged. In connection with these commitments, the Fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income is included in interest income on the Statement of Operations. As of September 30, 2016, there were no outstanding bridge loan commitments.

14. FEDERAL INCOME TAX MATTERS ($ amounts in thousands)

For Federal income tax purposes, cost of investments owned at September 30, 2016 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Bond Fund	$	789,261	$	25,063	$	3,365	$	21,698
Ivy Core Equity Fund		891,732		179,249		29,613		149,636
Ivy Cundill Global Value Fund		184,156		29,816		14,289		15,527
Ivy Dividend Opportunities Fund		306,497		69,693		3,830		65,863
Ivy Emerging Markets Equity Fund		464,878		133,578		5,969		127,609
Ivy European Opportunities Fund		190,715		21,354		9,555		11,799
Ivy Global Bond Fund		177,030		5,548		15,148		(9,600	)

2016 SEMIANNUAL REPORT 223

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Global Equity Income Fund	$	343,624	$	23,738	$	8,233	$	15,505
Ivy Global Growth Fund		413,535		77,376		8,648		68,728
Ivy Global Income Allocation Fund		747,911		32,981		45,002		(12,021	)
Ivy High Income Fund		5,043,980		130,325		527,155		(396,830	)
Ivy International Core Equity Fund		4,392,032		343,275		233,580		109,695
Ivy Large Cap Growth Fund		1,237,029		523,163		22,396		500,767
Ivy Limited-Term Bond Fund		1,818,003		25,513		1,343		24,170
Ivy Managed International Opportunities Fund		169,789		24,315		—		24,315
Ivy Micro Cap Growth Fund		139,389		38,239		4,374		33,865
Ivy Mid Cap Growth Fund		2,317,366		635,275		270,576		364,699
Ivy Mid Cap Income Opportunities Fund		191,670		21,400		1,824		19,576
Ivy Money Market Fund		194,842		—		—		—
Ivy Municipal Bond Fund		222,616		15,641		78		15,563
Ivy Municipal High Income Fund		1,274,116		119,836		56,037		63,799
Ivy Small Cap Growth Fund		701,514		270,096		10,809		259,287
Ivy Small Cap Value Fund		280,640		46,684		1,222		45,462
Ivy Tax-Managed Equity Fund		95,093		24,737		2,712		22,025
Ivy Value Fund		252,690		36,251		5,507		30,744

For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2016 and the post-October and late-year ordinary activity were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Tax Return of Capital		Post- October Capital Losses Deferred		Late-Year Ordinary Losses Deferred
Ivy Bond Fund	$	269	$	—	$	—	$	—	$	—
Ivy Core Equity Fund		2,721		13,534		—		9,115		—
Ivy Cundill Global Value Fund		316		—		—		—		—
Ivy Dividend Opportunities Fund		1,029		2,949		—		—		—
Ivy Emerging Markets Equity Fund		—		—		—		—		363
Ivy European Opportunities Fund		103		—		—		—		—
Ivy Global Bond Fund		671		—		—		—		—
Ivy Global Equity Income Fund		954		—		—		—		—
Ivy Global Growth Fund		—		—		—		5,347		528
Ivy Global Income Allocation Fund		2,905		—		—		—		—
Ivy High Income Fund		4,123		—		—		—		—
Ivy International Core Equity Fund		14,862		—		—		—		—
Ivy Large Cap Growth Fund		—		786		—		—		—
Ivy Limited-Term Bond Fund		448		—		—		—		—
Ivy Managed International Opportunities Fund		—		—		—		—		140
Ivy Micro Cap Growth Fund		—		—		—		9,486		508
Ivy Mid Cap Growth Fund		—		—		—		11,659		7,226
Ivy Mid Cap Income Opportunities Fund		—		—		—		—		54
Ivy Money Market Fund		24		—		—		—		—
Ivy Municipal Bond Fund		66		—		—		—		—
Ivy Municipal High Income Fund		480		—		—		—		—
Ivy Small Cap Growth Fund		—		11,371		—		—		8,983
Ivy Small Cap Value Fund		—		—		—		1,830		—
Ivy Tax-Managed Equity Fund		—		—		—		213		61
Ivy Value Fund		4,112		—		—		5,013		—

Internal Revenue Code regulations permit each Fund to elect to defer into its next fiscal year capital losses and certain specified ordinary items incurred between each November 1 and the end of its fiscal year. Each Fund is also permitted to defer into its next fiscal certain ordinary losses that generated between each January 1 and the end of its fiscal year.

224 SEMIANNUAL REPORT 2016

The tax character of dividends and distributions paid during the two fiscal years ended March 31, 2016 and 2015 were as follows:

	March 31, 2016				March 31, 2015
Fund	Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains		Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains
Ivy Bond Fund	$	18,123	$	—	$	16,383	$	—
Ivy Core Equity Fund		14,021		62,572		10,172		70,493
Ivy Cundill Global Value Fund		1,992		—		—		—
Ivy Dividend Opportunities Fund		3,493		30,139		8,347		36,886
Ivy Emerging Markets Equity Fund		4,983		—		4,850		—
Ivy European Opportunities Fund		948		—		3,277		—
Ivy Global Bond Fund		6,423		—		9,676		—
Ivy Global Equity Income Fund		9,054		8,438		8,517		5,103
Ivy Global Growth Fund		573		11,167		499		6,210
Ivy Global Income Allocation Fund		31,144		—		26,803		—
Ivy High Income Fund		487,204		—		714,539		102,306
Ivy International Core Equity Fund		42,519		—		96,423		187,458
Ivy Large Cap Growth Fund		—		109,373		—		110,293
Ivy Limited-Term Bond Fund		23,128		—		23,368		—
Ivy Managed International Opportunities Fund		1,484		—		3,332		—
Ivy Micro Cap Growth Fund		—		7,628		3,852		9,502
Ivy Mid Cap Growth Fund		47,509		339,017		43,907		430,721
Ivy Mid Cap Income Opportunities Fund		1,322		—		253		—
Ivy Money Market Fund		38		—		35		—
Ivy Municipal Bond Fund		4,224		—		3,922		—
Ivy Municipal High Income Fund		53,839		—		55,643		—
Ivy Small Cap Growth Fund		79		130,985		—		67,691
Ivy Small Cap Value Fund		—		33,901		3,510		25,999
Ivy Tax-Managed Equity Fund		350		1,745		—		1,437
Ivy Value Fund		5,446		28,458		8,378		16,969

(1) Includes short-term capital gains distributed, if any.

Dividends from net investment income and short-term capital gains are treated as ordinary income dividends for federal income tax purposes.

Accumulated capital losses represent net capital loss carryovers as of March 31, 2016 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), a Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years which have only an eight year carryforward period. As a result of this ordering rule, pre-enactment capital loss carryovers may expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under the previous law. The Fund’s first fiscal year end subject to the Modernization Act was March 31, 2012. The following table shows the expiration dates for capital loss carryovers from pre-enactment taxable years and the amounts of capital loss carryovers, if any, by each of the applicable Funds electing to be taxed as a regulated investment company during the year ended March 31, 2016:

	Pre-Enactment						Post-Enactment
Fund	2017		2018		2019		Short- Term Capital Loss Carryover		Long- Term Capital Loss Carryover
Ivy Bond Fund	$	18,939	$	—	$	—	$	184	$	7,733
Ivy Core Equity Fund		—		—		—		—		—
Ivy Cundill Global Value Fund		—		6,489		—		1,819		4,070
Ivy Dividend Opportunities Fund		—		—		—		—		—
Ivy Emerging Markets Equity Fund		—		606		—		112,894		—

2016 SEMIANNUAL REPORT 225

	Pre-Enactment						Post-Enactment
Fund	2017		2018		2019		Short- Term Capital Loss Carryover		Long- Term Capital Loss Carryover
Ivy European Opportunities Fund	$	—	$	115,739	$	—	$	13,346	$	4,370
Ivy Global Bond Fund		—		—		—		3,622		7,341
Ivy Global Equity Income Fund		—		—		—		14,916		3,278
Ivy Global Growth Fund		—		—		—		—		—
Ivy Global Income Allocation Fund		—		5,466		—		42,464		15,667
Ivy High Income Fund		—		—		—		52,939		458,854
Ivy International Core Equity Fund		—		—		—		166,514		4,858
Ivy Large Cap Growth Fund		20,021		—		—		—		—
Ivy Limited-Term Bond Fund		—		—		—		13,570		8,876
Ivy Managed International Opportunities Fund		10,327		6,481		10,440		—		—
Ivy Micro Cap Growth Fund		—		—		—		—		—
Ivy Mid Cap Growth Fund		—		—		—		—		—
Ivy Mid Cap Income Opportunities Fund		—		—		—		2,598		804
Ivy Money Market Fund		—		—		7		—		—
Ivy Municipal Bond Fund		101		84		146		185		2,633
Ivy Municipal High Income Fund		—		—		—		8,317		6,648
Ivy Small Cap Growth Fund		—		—		—		—		—
Ivy Small Cap Value Fund		—		—		—		—		—
Ivy Tax-Managed Equity Fund		—		—		—		—		—
Ivy Value Fund		—		—		—		—		—

Ivy Mortgage Securities Fund was merged into Ivy Bond Fund as of January 24, 2011. At the time of the merger, Ivy Mortgage Securities Fund had capital loss carryovers available to offset future gains of the Ivy Bond Fund. These carryovers are limited to $14,641 for the period ending March 31, 2017 and $4,298 for the period ending from March 31, 2018 plus any unused limitations from prior years.

Ivy Asset Strategy New Opportunities Fund was merged into Ivy Emerging Markets Equity Fund as of March 17, 2014. At the time of the merger, Ivy Asset Strategy New Opportunities Fund had capital loss carryovers available to offset future gains of the Ivy Emerging Markets Equity Fund. These carryovers are annually limited to $7,827 plus any unused limitations from prior years.

Ivy Managed European/Pacific Fund was merged into Ivy Managed International Opportunities Fund as of March 17, 2014. At the time of the merger, Ivy Managed European/Pacific Fund had capital loss carryovers available to offset future gains of the Ivy Managed International Opportunities Fund. These carryovers are annually limited to $2,377 plus any unused limitations from prior years.

226 SEMIANNUAL REPORT 2016

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENTS IVY FUNDS

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 8^th and 9^th, 2016, the Board, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), unanimously approved the continuance of the Investment Management Agreement (the “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 and Ivy Real Estate Securities Fund);

• Mackenzie Financial Corporation (with respect to Ivy Cundill Global Value Fund);

• LaSalle Investment Management Securities, LLC and LaSalle Investment Management Securities B.V. (with respect to Ivy Global Real Estate Fund and Ivy Global Risk-Managed Real Estate Fund); and

• Pictet Asset Management Limited and Pictet Asset Management (Singapore) Pte Ltd. (with respect to the Ivy Emerging Markets Local Currency Debt 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 explained the factors that the Board should consider as part of its review of the various agreements, all as outlined in a memorandum it had provided to the Board prior to the meeting, 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 Independent Trustees also considered the written responses and materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees’ legal counsel prior to the meeting, as well as materials produced in response to a follow-up request list sent to IICO by independent legal counsel on behalf of the Independent Trustees. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO, as well as an 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 Broadridge, Inc. (“Broadridge”) 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 and discussed these materials during a telephonic meeting in July 2016. They further reviewed these materials extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members at an executive session of the Independent Trustees at the August 9, 2016 Board meeting, during which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board’s determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to 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 requests submitted on its behalf by independent legal counsel.

The Board likewise considered the knowledge it had received from its regular meetings, 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 policies and procedures and with applicable laws and regulations). The Board also took into account the compliance environment at IICO and each Subadviser, noting the resources that IICO has dedicated towards compliance. 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 Funds

The Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. In that regard, the Board discussed the transfer agency/shareholder servicing fees that Waddell & Reed Services Company provides the Funds. The Board took note of the caps that management previously had agreed to on shareholder servicing costs. The Board also considered the benefits that accrue to each service provider organization from its respective relationship with the Funds, including the fact that a variety of services are provided by affiliates of IICO, including distribution, administrative and Fund accounting services, and, as discussed above, shareholder servicing. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates

2016 SEMIANNUAL REPORT 227

receives any additional direct or indirect benefits that would preclude the Board from approving the continuation of the Management Agreement with IICO or any Investment Subadvisory 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. The Board considered the fact that as a Fund’s assets have grown, the expenses of that Fund generally have fallen, although the Board took into account that the overall assets of the Funds have fallen during the prior year.

Performance of the Funds and Costs of Services Provided

The Board considered the performance of each Fund and the costs of the services provided, focusing on a number of Funds that the independent fee consultant had identified. Specifically, the Board examined the investment performance of each Fund, including the percentile ranking of each Fund over various periods of time. 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 and 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 other 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 those other 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 Funds’ expense ratios, noting that, as the Funds’ assets have increased or decreased over time, the expense ratios of the Funds generally have fallen or risen, respectively. After completing this examination, the Board concluded that each Fund’s expenses are appropriate at the current time.

Independent Fee Consultant Review

During July of 2016, and as part of their regularly scheduled meetings, the Independent Trustees reviewed a substantial amount of information in connection with considering the continuation of the Management Agreement currently in effect between IICO and the Funds. Independent legal counsel, on behalf of the Independent Trustees, engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO to the Funds. The independent fee consultant’s review addressed the following fee-related factors:

1. The nature, extent and quality of IICO’s services to the 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 agreement, and profit margins of IICO and its affiliates from supplying such services; and

5. Possible economies of scale as a Fund grows larger.

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

Summary Findings

The report stated that IICO delivered reasonable levels of performance in the longer-term periods and reasonable levels of service to the Funds in relation to its management fees as compared to the investment advisers of comparable funds. For

¹  The independent fee consultant’s evaluation was based on information provided by IICO, Broadridge, 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 a Fund to IICO, as a percentage of average net assets. The term “total expenses” refers to the total annual expenses, net of any fee waivers, paid by a Fund, as a percentage of average net assets. Where these terms are used in reference to groups of 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, 2016. Broadridge report data reflects Class A shares.

228 SEMIANNUAL REPORT 2016

the 36 months ended March 31, 2016, approximately 10% of the Funds were in the top quartile of performance and 40% of the Funds were in the top two quartiles of performance, although short-term performance of the Funds had declined after an extended period of superior long-term performance, which bears monitoring. The independent fee consultant noted that the Funds’ performance appeared to be grounded in a number of institutional competitive advantages at IICO including economic analysis, investment management depth, ability to attract top talent, strategic vision, performance-focused culture, and an effective trading infrastructure, and that these factors could allow IICO to overcome recent short-term performance challenges.

The report further indicated that total expenses of the Funds, on average, were 4% below the average total expenses of their respective Broadridge Expense Group peers and 15% below the average total expenses for their Broadridge Expense Universes. The management fees for the Funds were 6% below the average management fees of their respective Broadridge Expense Group peers and 10% below the average management fees for their Broadridge Expense Universes. The independent fee consultant noted that the Funds, generally small account size relative to the Expense Groups introduces certain biases in the Broadridge analyses that work against the Funds in Broadridge expense comparisons and, as a result, the Broadridge findings may be considered conservative. The independent fee consultant found that within the larger Broadridge averages, the management fees and total expenses of individual Funds and share classes are reasonable relative to their performance.

The report also stated that the management fees IICO charges to the Funds are reasonable in relation to the management fees it charges to its institutional account clients. The report noted that these institutional account clients have different service and infrastructure needs and in addition, the average spread between management fees IICO charged to the Funds and those it charges to institutional account clients is reasonable relative to the average fee spreads computed from industry surveys.

The report stated that while it was difficult to confirm overall economies of scale, it was clear that the Funds’ shareholders generally are benefitting from lower expenses as the Funds’ assets grow.

The report also noted that IICO’s overall profitability from managing the Funds and its other operations is near the median of most similarly-sized, publicly-traded peers, but appears adequate to enable IICO to continue to provide quality support to the Funds and their shareholders. Finally, the report noted that IICO has continued to invest in AUM growth, which is designed to help drive down fund expenses and attract top investment management talent, both of which can benefit the Funds’ investors.

Finally, the report also examined the fees that IICO retains on Funds that are subadvised by unaffiliated subadvisers, and indicated that those fees are reasonable relative to the industry. The report also stated that the subadvisory fees that IICO earns for serving as a subadviser to an unaffiliated fund when compared to fees of similar Funds likewise are reasonable relative to the industry.

Conclusions

The independent fee consultant’s report concluded that it believes that the services provided by IICO and its affiliates and expenses incurred by the Funds in the previous 12 months are reasonable and provide adequate justification for renewal of the Funds’ existing Management Agreement and Investment Subadvisory Agreements.

Approvals for Ivy California Municipal High Income Fund

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 9, 2016, the trustees, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), considered and approved an amendment to the Investment Management Agreement (the “Management Agreement”) between Ivy Investment Management Company (“IICO”) and the Trust, on behalf of Ivy California Municipal High Income Fund (the “Fund”), to include the Fund under the Management Agreement. The Fund is a newly created series of the Trust.

The Independent Trustees were assisted in their consideration of the Management Agreement by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel had provided the Board with a memorandum prior to the meeting that discussed the various factors that the Board should consider as part of its review of the Management Agreement, including, among other things, the nature and quality of the services proposed to be provided to the Fund by IICO, IICO’s potential profitability (including any fall-out benefits) from its proposed relationship with the Fund, projected economies of scale, the role played by the Independent Trustees and information on comparative fees and expenses. The material factors and conclusions that formed the basis for the Board’s determination to approve the Management Agreement are discussed below.

In considering the Management Agreement, the Board noted that although the Fund had not yet commenced operations, the Fund appeared to be designed to be able to achieve acceptable performance. The Board also considered the proposed expenses of the Fund, the cost of the services proposed to be provided by IICO, including as compared to the other Funds in

2016 SEMIANNUAL REPORT 229

the Trust family and comparable funds. The Board also noted the proposed expense cap agreement, and concluded that the proposed expenses of the Fund were acceptable. The Board did not discuss possible economies of scale because the Fund had not yet commenced operations. The Board noted that it would monitor profitability once the Fund began operations. The Board considered the nature, extent and quality of services proposed to be provided to the Fund by IICO, taking into account the investment objectives and strategies of the Fund, the Board’s experience with IICO, and other materials previously provided to the Board on the Fund. In addition, the Board reviewed the resources and key personnel of IICO. The Board also considered other services proposed to be provided to the Fund by IICO based upon its current experiences with IICO, such as IICO’s ability to monitor adherence to the Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees on Fund matters, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures and with applicable laws and regulations. The Board also took into account IICO’s compliance environment. The Board concluded that the nature and extent of services to be provided by IICO are reasonable, considering the quality of the services currently provided by IICO for other Funds of the Trust. The Board also discussed whether IICO would derive any other direct or indirect benefits from serving as investment adviser to the Fund. The Board considered the benefits that would accrue to IICO from its relationship with the Fund, including the fact that a variety of services for the Fund were proposed to be provided by affiliates of IICO, including distribution, shareholder servicing and transfer agency services. After consideration of these and other factors, the Board concluded that neither IICO nor any of its affiliates would receive any additional direct benefits that would preclude the Board from approving the Management Agreement for the Fund.

230 SEMIANNUAL REPORT 2016

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 Investments’ website at www.ivyinvestments.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.ivyinvestments.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.

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232 SEMIANNUAL REPORT 2016

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234 SEMIANNUAL REPORT 2016

THE IVY FUNDS FAMILY

Domestic Equity Funds

Ivy Core Equity Fund

Ivy Dividend Opportunities Fund

Ivy Large Cap Growth Fund

Ivy Micro Cap Growth Fund

Ivy Mid Cap Growth Fund

Ivy Mid Cap Income Opportunities 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 Emerging Markets Equity Fund

Ivy Emerging Markets Local Currency Debt Fund

Ivy European Opportunities Fund

Ivy Global Equity Income Fund

Ivy Global Growth Fund

Ivy Global Income Allocation Fund

Ivy International Core Equity Fund

Ivy Managed International Opportunities Fund

Speciality Funds

Ivy Apollo Multi-Asset Income Fund

Ivy Asset Strategy Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Global Natural Resources Fund

Ivy LaSalle Global Real Estate Fund

Ivy LaSalle Global Risk-Managed Real Estate Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

Fixed Income Funds

Ivy Apollo Strategic Income Fund

Ivy Bond Fund

Ivy Global Bond Fund

Ivy High Income Fund

Ivy Limited-Term Bond Fund

Ivy Money Market Fund

Ivy Municipal Bond Fund

Ivy Municipal High Income Fund

Ivy Targeted Return Bond Fund

1.800.777.6472

Visit us online at www.ivyinvestments.com

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

Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a mutual fund. This and other important information is contained in the prospectus and summary prospectus, which may be obtained at www.ivyinvestments.com or from a financial advisor. Read it carefully before investing.

2016 SEMIANNUAL REPORT 235

SEMIANN-IVYFUNDS (9-16)

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

1

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.

2

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/ Wendy J. Hills
	Wendy J. Hills, Vice President and Secretary
Date:	December 9, 2016

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/ Philip J. Sanders
	Philip J. Sanders, President and Principal Executive Officer
Date:	December 9, 2016
By	/s/ Joseph W. Kauten
	Joseph W. Kauten, Vice President and Principal Financial Officer
Date:	December 9, 2016

EX-99.CERT

EXHIBIT 99.CERT

CERTIFICATION

I, Philip J. Sanders, 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 9, 2016	/s/ Philip J. Sanders
	Philip J. Sanders, 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 9, 2016	/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

Philip J. Sanders, 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/ Philip J. Sanders
	Philip J. Sanders, Principal Executive Officer
Date:	December 9, 2016
By	/s/ Joseph W. Kauten
	Joseph W. Kauten, Principal Financial Officer
Date:	December 9, 2016