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)

Jennifer K. Dulski

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: September 30

Date of reporting period: March 31, 2017

ITEM 1.      REPORTS TO STOCKHOLDERS.

1

  Semiannual Report   MARCH 31, 2017

Ticker

Class A

Class C

Class E

Class I

Class N

Class R

Class Y

IVY FUNDS

Ivy Apollo Multi-Asset Income Fund

IMAAX

IMACX

IMAIX

IMURX

IMAYX

Ivy Apollo Strategic Income Fund

IAPOX

ICPOX

IIPOX

IRPOX

IYPOX

Ivy California Municipal High Income Fund

IMHAX

IMHCX

IMHIX

IMHYX

Ivy IG International Small Cap Fund

IVJAX

IVJCX

IVJIX

IVJRX

IVJYX

Ivy Pictet Emerging Markets Local Currency Debt Fund

IECAX

IECCX

IECEX

IECIX

IMMCX

IECRX

IECYX

Ivy Pictet Targeted Return Bond Fund

IRBAX

IRBCX

IRBIX

IRBRX

IRBYX

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 Apollo Multi-Asset Income Fund	7
Ivy Apollo Strategic Income Fund	22
Ivy California Municipal High Income Fund	37
Ivy IG International Small Cap Fund	40
Ivy Pictet Emerging Markets Local Currency Debt Fund	44
Ivy Pictet Targeted Return Bond Fund	51
Statements of Assets and Liabilities	60
Statements of Operations	62
Statements of Changes in Net Assets	63
Financial Highlights	66
Notes to Financial Statements	78
Approval of Investment Management Agreements	97
Proxy Voting Information	100
Quarterly Portfolio Schedule Information	100
IRA Disclosure	100

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

	MARCH 31, 2017 (UNAUDITED)
Philip J. Sanders, CFA

Dear Shareholder,

Across the six months since our last report, investors endured concerns about global economic growth, the level of interest rates, fluctuation in oil prices and the outcome of the U.S. presidential election. Following that election in November 2016, the domestic equity markets rose sharply and the bond markets saw a slight rise, with both trends carrying into early 2017. See the table for a comparison in some common market metrics over the last six months.

Many investors may be unsettled by the prospect that continued change — in leadership of key countries around the world, in government policy, in interest rate levels — will contribute to market volatility and general uncertainty. While that may be true at times, we believe it is important to stay focused on the fundamentals and merits of sectors, industries and companies when making investment decisions. Those fundamentals historically have tended to outweigh external factors such as government policies and regulations. While government policies can affect every business and investor, we think the innovation and management skill within individual companies ultimately drive long-term stock prices.

By the end of March 2017, the U.S. economy remained fundamentally sound. 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.

The Federal Reserve raised interest rates slightly in December 2016 and again in March 2017, with an indication that two more increases may be executed in 2017. 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 continue to evaluate their policies, as both areas are seeing only slight economic growth.

China, in the face of economic softening in late 2015, turned toward more aggressive stimulus. Given recent economic improvement, authorities have tightened liquidity within the financial system while fiscal stimulus has continued. 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

	3/31/2017		9/30/2016
S&P 500 Index		2,362.72		2,168.27
MSCI EAFE Index		1,792.98		1,701.69
10-Year Treasury Yield		2.40%		1.60%
U.S. unemployment rate		4.5%		4.9%
30-year fixed mortgage rate		4.14%		3.42%
Oil price per barrel	$	50.60	$	48.24

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

2017 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 March 31, 2017.

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 6 to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 9-30-16		Ending Account Value 3-31-17		Expenses Paid During Period*		Beginning Account Value 9-30-16		Ending Account Value 3-31-17		Expenses Paid During Period*
Ivy Apollo Multi-Asset Income Fund
Class A	$	1,000	$	1,028.10	$	6.59	$	1,000	$	1,018.46	$	6.56		1.30%
Class C	$	1,000	$	1,023.20	$	10.12	$	1,000	$	1,014.91	$	10.07		2.01%
Class I	$	1,000	$	1,028.80	$	4.97	$	1,000	$	1,020.01	$	4.95		0.99%
Class N****	$	1,000	$	1,029.70	$	4.26	$	1,000	$	1,020.74	$	4.24		0.84%
Class Y	$	1,000	$	1,028.30	$	6.29	$	1,000	$	1,018.75	$	6.26		1.24%

See footnotes on page 6.

4 SEMIANNUAL REPORT 2017

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 9-30-16		Ending Account Value 3-31-17		Expenses Paid During Period*		Beginning Account Value 9-30-16		Ending Account Value 3-31-17		Expenses Paid During Period*
Ivy Apollo Strategic Income Fund
Class A	$	1,000	$	1,018.60	$	5.75	$	1,000	$	1,019.20	$	5.75		1.15%
Class C	$	1,000	$	1,015.10	$	9.27	$	1,000	$	1,015.72	$	9.27		1.85%
Class I	$	1,000	$	1,020.10	$	4.24	$	1,000	$	1,020.70	$	4.24		0.85%
Class N****	$	1,000	$	1,020.20	$	4.14	$	1,000	$	1,020.82	$	4.14		0.82%
Class Y	$	1,000	$	1,018.90	$	5.55	$	1,000	$	1,019.45	$	5.55		1.10%
Ivy California Municipal High Income Fund**
Class A	$	1,000	$	992.60	$	3.69	$	1,000	$	1,021.21	$	3.74		0.75%
Class C	$	1,000	$	988.80	$	7.46	$	1,000	$	1,017.38	$	7.67		1.52%
Class I	$	1,000	$	993.50	$	2.79	$	1,000	$	1,022.12	$	2.83		0.57%
Class Y	$	1,000	$	992.60	$	3.69	$	1,000	$	1,021.20	$	3.74		0.75%
Ivy IG International Small Cap Fund***
Class A	$	1,000	$	1,035.00	$	3.26	$	1,000	$	1,017.80	$	7.16		1.43%
Class C	$	1,000	$	1,033.00	$	4.88	$	1,000	$	1,014.16	$	10.88		2.16%
Class I	$	1,000	$	1,035.00	$	2.54	$	1,000	$	1,019.28	$	5.75		1.14%
Class N****	$	1,000	$	1,035.00	$	2.54	$	1,000	$	1,019.23	$	5.75		1.14%
Class Y	$	1,000	$	1,035.00	$	3.26	$	1,000	$	1,017.80	$	7.16		1.43%
Ivy Pictet Emerging Markets Local Currency Debt Fund
Class A	$	1,000	$	984.80	$	6.15	$	1,000	$	1,018.70	$	6.26		1.25%
Class C	$	1,000	$	981.30	$	9.91	$	1,000	$	1,014.97	$	10.07		2.00%
Class E	$	1,000	$	984.80	$	6.15	$	1,000	$	1,018.73	$	6.26		1.25%
Class I	$	1,000	$	985.90	$	4.96	$	1,000	$	1,019.95	$	5.05		1.00%
Class N****	$	1,000	$	987.00	$	4.97	$	1,000	$	1,019.95	$	5.05		1.00%
Class R	$	1,000	$	983.60	$	7.44	$	1,000	$	1,017.46	$	7.57		1.50%
Class Y	$	1,000	$	985.90	$	6.16	$	1,000	$	1,018.70	$	6.26		1.25%
Ivy Pictet Targeted Return Bond Fund
Class A	$	1,000	$	999.00	$	6.20	$	1,000	$	1,018.70	$	6.26		1.25%	(3)
Class C	$	1,000	$	994.60	$	9.47	$	1,000	$	1,015.38	$	9.57		1.91%	(4)
Class I	$	1,000	$	999.30	$	5.00	$	1,000	$	1,019.95	$	5.05		1.00%	(5)
Class N****	$	1,000	$	999.50	$	4.30	$	1,000	$	1,020.60	$	4.34		0.87%	(6)
Class Y	$	1,000	$	997.70	$	6.19	$	1,000	$	1,018.70	$	6.26		1.25%	(7)

See footnotes on page 6.

2017 SEMIANNUAL REPORT 5

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

* 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 182 days in the six-month period ended March 31, 2017, and divided by 365.

** 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 180 days in the six-month period ended March 31, 2017, and divided by 365. Actual inception date of the Fund is 10-3-16 (the date on which shares were first acquired by shareholders).

*** 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 81 days in the six-month period ended March 31, 2017, and divided by 365. Actual inception date of the Fund is 1-10-17 (the date on which shares were first acquired by shareholders).

**** Effective March 3, 2017 Class R6 has been renamed Class N.

(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 period excluding offering cost was 1.19%.

(4) Annualized expense ratio based on the period excluding offering cost was 1.85%.

(5) Annualized expense ratio based on the period excluding offering cost was 0.94%.

(6) Annualized expense ratio based on the period excluding offering cost was 0.81%.

(7) Annualized expense ratio based on the period excluding offering cost was 1.19%.

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 2017

PORTFOLIO HIGHLIGHTS IVY APOLLO MULTI-ASSET INCOME FUND

ALL DATA IS AS OF MARCH 31, 2017 (UNAUDITED)

Asset Allocation

Stocks	49.5%
Real Estate	9.3%
Financials	7.2%
Energy	5.2%
Health Care	5.1%
Consumer Staples	5.1%
Industrials	4.5%
Information Technology	4.2%
Consumer Discretionary	3.6%
Utilities	2.3%
Telecommunication Services	1.6%
Materials	1.4%
Bonds	39.1%
Corporate Debt Securities	23.1%
Loans	13.5%
Mortgage-Backed Securities	1.3%
Asset-Backed Securities	1.1%
Other Government Securities	0.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	11.4%

Country Weightings

North America	55.2%
United States	52.1%
Other North America	3.1%
Europe	26.5%
United Kingdom	9.1%
France	5.7%
Other Europe	11.7%
Pacific Basin	6.0%
Bahamas/Caribbean	0.5%
South America	0.3%
Other	0.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	11.4%

Lipper Rankings

Category: Lipper Mixed-Asset Target Allocation Moderate Funds	Rank	Percentile
1 Year	472/586		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.

Top 10 Equity Holdings

Company	Country	Sector	Industry
Microsoft Corp.	United States	Information Technology	Systems Software
Royal Dutch Shell plc, Class A	United Kingdom	Energy	Integrated Oil & Gas
Total S.A.	France	Energy	Integrated Oil & Gas
Pfizer, Inc.	United States	Health Care	Pharmaceuticals
iShares iBoxx $ High Yield Corporate Bond ETF	United States	Financials	Registered Investment Companies
Chevron Corp.	United States	Energy	Integrated Oil & Gas
Johnson & Johnson	United States	Health Care	Pharmaceuticals
Wells Fargo & Co.	United States	Financials	Diversified Banks
Merck & Co., Inc.	United States	Health Care	Pharmaceuticals
Unilever N.V., Certicaaten Van Aandelen	Netherlands	Consumer Staples	Personal Products

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.

2017 SEMIANNUAL REPORT 7

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Advertising – 0.9%
UBM plc (A)		242	$	2,314
WPP Group plc (A)		117		2,569
				4,883
Automobile Manufacturers – 0.5%
Fuji Heavy Industries Ltd. (A)		72		2,630
Cable & Satellite – 0.0%
Altice N.V., Class A (A)(B)		9		203
Footwear – 0.6%
ANTA Sports Products Ltd. (A)		1,246		3,447
Home Improvement Retail – 0.6%
Home Depot, Inc. (The)		23		3,312
Homebuilding – 0.4%
Bellway plc (A)		68		2,295
Tires & Rubber – 0.6%
Bridgestone Corp. (A)		78		3,135
Total Consumer Discretionary – 3.6%				19,905
Consumer Staples
Distillers & Vintners – 0.6%
Diageo plc (A)		109		3,130
Food Retail – 0.5%
Casino Guichard Perrachon S.A. (A)		51		2,826
Household Products – 0.4%
Reckitt Benckiser Group plc (A)		26		2,331
Packaged Foods & Meats – 0.9%
Marine Harvest ASA (A)		336		5,126
Personal Products – 1.0%
Unilever N.V., Certicaaten Van Aandelen (A)		105		5,196
Soft Drinks – 0.4%
PepsiCo, Inc.		21		2,343
Tobacco – 1.3%
Altria Group, Inc.		66		4,727
Imperial Tobacco Group plc (A)		60		2,923
				7,650
Total Consumer Staples – 5.1%				28,602
Energy
Integrated Oil & Gas – 4.6%
Chevron Corp.		57		6,106
PJSC LUKOIL ADR (A)		84		4,427
Royal Dutch Shell plc, Class A (A)		278		7,293
Total S.A. (A)		138		6,995
				24,821

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Storage & Transportation – 0.6%
Inter Pipeline Ltd. (A)		151	$	3,187
Total Energy – 5.2%				28,008
Financials
Diversified Banks – 4.9%
Bank of Montreal (A)		45		3,347
BNP Paribas S.A. (A)		37		2,463
BOC Hong Kong (Holdings) Ltd. (A)		820		3,349
HSBC Holdings plc (A)		436		3,556
ING Groep N.V., Certicaaten Van Aandelen (A)		276		4,173
Royal Bank of Canada (A)		46		3,315
Societe Generale S.A. (A)		22		1,093
Wells Fargo & Co.		99		5,490
				26,786
Life & Health Insurance – 0.4%
Prudential plc (A)		113		2,397
Multi-Line Insurance – 0.3%
Axa S.A. (A)		69		1,776
Registered Investment Companies – 1.1%
iShares iBoxx $ High Yield Corporate Bond ETF		72		6,357
Thrifts & Mortgage Finance – 0.5%
Indiabulls Housing Finance Ltd. (A)		200		3,080
Total Financials – 7.2%				40,396
Health Care
Pharmaceuticals – 5.1%
AstraZeneca plc (A)		18		1,134
Bayer AG (A)		25		2,825
Eli Lilly and Co.		40		3,375
Johnson & Johnson		44		5,498
Merck & Co., Inc. (C)		85		5,383
Pfizer, Inc.		194		6,645
Roche Holdings AG, Genusscheine (A)		18		4,502
				29,362
Total Health Care – 5.1%				29,362
Industrials
Aerospace & Defense – 1.2%
BAE Systems plc (A)		442		3,556
Lockheed Martin Corp.		12		3,333
				6,889
Building Products – 0.3%
Compagnie de Saint-Gobain (A)		35		1,792
Construction & Engineering – 0.7%
Vinci (A)		50		3,941
Electrical Components & Equipment – 1.1%
Eaton Corp.		43		3,171

COMMON STOCKS (Continued)	Shares			Value
Electrical Components & Equipment (Continued)
Schneider Electric S.A. (A)		39		$	2,846
					6,017
Industrial Conglomerates – 0.8%
Koninklijke Philips Electronics N.V., Ordinary Shares (A)		77			2,459
Siemens AG (A)		17			2,325
					4,784
Industrial Machinery – 0.4%
IMI plc (A)		143			2,144
Total Industrials – 4.5%					25,567
Information Technology
Communications Equipment – 0.6%
Cisco Systems, Inc.		108			3,654
Semiconductors – 2.0%
Analog Devices, Inc.		54			4,409
Cypress Semiconductor Corp.		247			3,402
Texas Instruments, Inc.		43			3,455
					11,266
Systems Software – 1.6%
Microsoft Corp.		133			8,754
Total Information Technology – 4.2%					23,674
Materials
Construction Materials – 0.4%
CRH plc (A)		67			2,359
Diversified Metals & Mining – 0.4%
Rio Tinto plc (A)		54			2,157
Paper Products – 0.6%
Mondi plc (A)		143			3,458
Total Materials – 1.4%					7,974
Real Estate
Diversified Real Estate Activities – 1.3%
CapitaLand Ltd. (A)		125			324
Heiwa Real Estate Co. Ltd. (A)		32			450
Mitsubishi Estate Co. Ltd. (A)		123			2,243
Mitsui Fudosan Co. Ltd. (A)		109			2,325
Sun Hung Kai Properties Ltd. (A)		166			2,439
					7,781
Diversified REITs – 1.0%
Canadian REIT (A)		5			175
Gecina (A)		3			462
GPT Group (A)		95			374
H&R Real Estate Investment Trust (A)		10			166
Ichigo Hotel Investment Corp. (A)		—	*		158
Kenedix Office Investment Corp. (A)		—	*		324
Land Securities Group plc (A)		99			1,316

8 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

COMMON STOCKS (Continued)	Shares			Value
Diversified REITs (Continued)
LondonMetric Property plc (A)		140		$	280
Merlin Properties Socimi S.A. (A)		23			253
Mirvac Group (A)		309			518
NSI N.V. (A)		31			128
Spirit Realty Capital, Inc.		49			496
Tokyu, Inc. (A)		—	*		322
VEREIT, Inc.		58			495
					5,467
Health Care REITs – 0.5%
Assura plc (A)		81			59
Ventas, Inc.		10			638
Welltower, Inc.		31			2,191
					2,888
Hotel & Resort REITs – 0.3%
LaSalle Hotel Properties		24			688
Park Hotels & Resorts, Inc.		15			397
RLJ Lodging Trust		24			557
					1,642
Industrial REITs – 0.2%
Duke Realty Corp.		23			610
ProLogis, Inc.		10			543
Warehouses De Pauw Comm. VA/SCA (A)		1			129
					1,282
Office REITs – 1.2%
Allied Properties (A)		5			128
alstria office AG (A)		29			355
Axiare Patrimonio SOCIMI S.A. (A)		10			152
Boston Properties, Inc.		12			1,630
CapitaCommercial Trust (A)		137			152
Corporate Office Properties Trust		9			285
Daiwa Office Investment Corp. (A)		—	*		291
Derwent London plc (A)		23			822
Global One Corp. (A)		—	*		127
Great Portland Estates plc (A)		40			327
Paramount Group, Inc.		27			434
SL Green Realty Corp.		8			830
Vornado Realty Trust		15			1,535
					7,068
Real Estate Operating Companies – 0.9%
Ado Properties S.A. (A)		6			212
AEON Mall Co. Ltd. (A)		18			286
Buwog AG (A)		6			146
Deutsche EuroShop AG (A)		5			192
Entra ASA (A)		16			178
Fabege AB (A)		13			209
First Capital Realty, Inc. (A)		10			157
Global Logistic Properties Ltd. (A)		15			30
Hongkong Land Holdings Ltd. (A)		113			868
Hufvudstaden AB (A)		2			36
Kungsleden AB (A)		30			172
LEG Immobilien AG (A)		5			435
PSP Swiss Property Ltd., Registered Shares (A)		4			319
Swire Properties Ltd. (A)		304			975
Vonovia SE (A)		20			705
					4,920

COMMON STOCKS (Continued)	Shares		Value
Residential REITs – 1.1%
American Campus Communities, Inc.		15	$	716
AvalonBay Communities, Inc.		9		1,729
Camden Property Trust		15		1,189
Canadian Apartment Properties REIT (A)		4		89
Equity Residential		39		2,414
				6,137
Retail REITs – 1.9%
Brixmor Property Group, Inc.		31		664
Federal Realty Investment Trust		5		653
General Growth Properties, Inc.		36		841
Hammerson plc (A)		32		226
Regency Centers Corp.		9		604
RioCan (A)		7		140
Scentre Group (A)		290		951
Shaftesbury plc (A)		20		226
Simon Property Group, Inc.		20		3,476
Taubman Centers, Inc.		8		497
Unibail-Rodamco (A)		7		1,546
Vastned Retail N.V. (A)		4		147
Westfield Corp. (A)		157		1,067
				11,038
Specialized REITs – 0.9%
American Tower Corp., Class A		7		815
Big Yellow Group plc (A)		29		266
Crown Castle International Corp.		6		605
CubeSmart		34		883
DuPont Fabros Technology, Inc.		7		340
Equinix, Inc.		1		545
Life Storage, Inc.		7		540
Public Storage, Inc.		5		1,155
				5,149
Total Real Estate – 9.3%				53,372
Telecommunication Services
Integrated Telecommunication Services – 1.6%
AT&T, Inc.		80		3,311
Nippon Telegraph and Telephone Corp. (A)		53		2,249
Orange S.A. (A)		222		3,443
				9,003
Total Telecommunication Services – 1.6%				9,003
Utilities
Electric Utilities – 1.7%
ENEL S.p.A. (A)		935		4,404
Iberdrola S.A. (A)		670		4,791
				9,195
Multi-Utilities – 0.6%
National Grid plc (A)		281		3,574
Total Utilities – 2.3%				12,769
TOTAL COMMON STOCKS – 49.5%			$	278,632
(Cost: $262,175)

PREFERRED STOCKS		Shares		Value
Consumer Staples
Agricultural Products – 0.0%
Pinnacle Agriculture Enterprises LLC (B)(D)(E)		233	$	106
Total Consumer Staples – 0.0%				106
TOTAL PREFERRED STOCKS – 0.0%			$	106
(Cost: $106)
ASSET-BACKED SECURITIES	Principal
Adams Mill CLO Ltd., Series 2014-1A, Class D1 (3-Month U.S. LIBOR plus 350 bps),
4.523%, 7–15–26 (F)(G)	$	600		591
Anchorage Credit Funding Ltd., Series 2015-2A, Class D,
7.300%, 1–25–31 (F)		600		597
Guggenheim 1828 CLO LLC, Series 2016-1A (3-Month U.S. LIBOR plus 700 bps),
7.679%, 4–15–28 (F)(G)		600		603
Marathon CLO Ltd. and Marathon CLO LLC, Series 2015-8A, Class C (3-Month U.S. LIBOR plus 405 bps),
5.074%, 7–18–27 (F)(G)		600		586
NRZ Excess Spread Collateralized Notes, Series 2016-PLS2,
5.683%, 7–25–21 (F)		1,235		1,236
NZCG Funding Ltd., Series 2015-2A, Class D (3-Month U.S. LIBOR plus 630 bps),
7.337%, 4–27–27 (F)(G)		470		468
OZLM Ltd., Series 2015-12A (3-Month U.S. LIBOR plus 370 bps),
4.739%, 4–30–27 (F)(G)		600		598
Seven Sticks CLO Ltd., Series 2016-1A (3-Month U.S. LIBOR plus 760 bps),
8.454%, 7–15–28 (F)(G)		600		602
Sound Point CLO Ltd., Series 2016-2A, Class D (3-Month U.S. LIBOR plus 425 bps),
5.280%, 10–20–28 (F)(G)		400		401
TIAA Churchill Middle Market CLO I Ltd., Series 2016-1A, Class D (3-Month U.S. LIBOR plus 540 bps),
6.201%, 10–20–28 (F)(G)		750		748
TOTAL ASSET-BACKED SECURITIES – 1.1%			$	6,430
(Cost: $6,329)
CORPORATE DEBT SECURITIES
Consumer Discretionary
Advertising – 0.1%
Acosta, Inc.,
7.750%, 10–1–22 (F)		250		212
Lamar Media Corp.,
5.375%, 1–15–24		250		258
				470

2017 SEMIANNUAL REPORT 9

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Apparel Retail – 0.2%
Hot Topic, Inc.,
9.250%, 6–15–21 (F)	$	547	$	531
HT Intermediate Holdings Corp. (12.000% Cash or 12.750% PIK),
12.000%, 5–15–19 (F)(H)		350		348
				879
Apparel, Accessories & Luxury Goods – 0.1%
Hanesbrands, Inc.,
4.875%, 5–15–26 (F)		500		491
Automotive Retail – 0.2%
Allison Transmission, Inc.,
5.000%, 10–1–24 (F)		86		87
Group 1 Automotive, Inc.,
5.000%, 6–1–22		190		191
Penske Automotive Group, Inc.,
5.500%, 5–15–26		136		133
Sonic Automotive, Inc.,
5.000%, 5–15–23		575		559
				970
Broadcasting – 1.0%
Clear Channel Outdoor Holdings, Inc.,
6.500%, 11–15–22		934		959
Clear Channel Worldwide Holdings, Inc., Series A,
7.625%, 3–15–20		227		225
Clear Channel Worldwide Holdings, Inc., Series B,
7.625%, 3–15–20		1,475		1,487
Cumulus Media, Inc.,
7.750%, 5–1–19		72		25
Gray Television, Inc.:
5.125%, 10–15–24 (F)		505		499
5.875%, 7–15–26 (F)		300		305
Nexstar Escrow Corp.,
5.625%, 8–1–24 (F)		150		152
Radio One, Inc. (GTD by TV One LLC),
7.375%, 4–15–22 (F)		567		592
Sinclair Television Group, Inc.:
5.875%, 3–15–26 (F)		225		231
5.125%, 2–15–27 (F)		300		290
Univision Communications, Inc.,
5.125%, 2–15–25 (F)		500		492
WideOpenWest Finance LLC and WideOpenWest Capital Corp.,
10.250%, 7–15–19		218		227
				5,484
Cable & Satellite – 3.9%
Altice Financing S.A.:
6.500%, 1–15–22 (F)		100		105
6.625%, 2–15–23 (F)		987		1,026
7.500%, 5–15–26 (F)		600		638
Altice S.A.:
7.250%, 5–15–22 (F)(I)	EUR	250		282
7.750%, 5–15–22 (F)	$	1,175		1,246
6.250%, 2–15–25 (F)(I)	EUR	250		284
7.625%, 2–15–25 (F)	$	600		634
Altice U.S. Finance I Corp.,
5.500%, 5–15–26 (F)		900		925

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Cable & Satellite (Continued)
Altice U.S. Finance II Corp.,
7.750%, 7–15–25 (F)	$	547	$	605
Block Communications, Inc.,
6.875%, 2–15–25 (F)		111		118
Cablevision Systems Corp.:
7.750%, 4–15–18		375		391
5.875%, 9–15–22		446		450
CCO Holdings LLC and CCO Holdings Capital Corp.,
5.500%, 5–1–26 (F)		106		110
Columbus International, Inc.,
7.375%, 3–30–21 (F)		200		214
DISH DBS Corp.:
6.750%, 6–1–21		297		321
5.875%, 7–15–22		1,000		1,050
5.000%, 3–15–23		1,000		1,004
5.875%, 11–15–24		122		128
7.750%, 7–1–26		124		144
Intelsat Jackson Holdings S.A.:
7.250%, 4–1–19		458		437
9.500%, 9–30–22 (F)		926		1,089
8.000%, 2–15–24 (F)		631		669
Neptune Finco Corp.:
10.125%, 1–15–23 (F)		743		862
6.625%, 10–15–25 (F)		225		245
10.875%, 10–15–25 (F)		552		664
Numericable – SFR S.A.,
7.375%, 5–1–26 (F)		1,937		1,995
Sirius XM Radio, Inc.:
4.625%, 5–15–23 (F)		1,200		1,226
6.000%, 7–15–24 (F)		1,400		1,501
VTR Finance B.V.,
6.875%, 1–15–24 (F)		1,550		1,612
WaveDivision Escrow LLC and WaveDivision Escrow Corp.,
8.125%, 9–1–20 (F)		877		903
Ziggo Secured Finance B.V.,
5.500%, 1–15–27 (F)		280		280
				21,158
Casinos & Gaming – 0.6%
Gamenet Group S.p.A.,
6.000%, 8–15–21 (F)(I)	EUR	200		222
Gateway Casinos & Entertainment Ltd.,
8.250%, 3–1–24 (F)	$	406		411
MGM Resorts International,
8.625%, 2–1–19		687		754
Scientific Games International, Inc. (GTD by Scientific Games Corp.),
7.000%, 1–1–22 (F)		1,185		1,266
Wynn Macau Ltd.,
5.250%, 10–15–21 (F)		800		816
				3,469
Department Stores – 0.0%
Bon-Ton Stores, Inc. (The),
8.000%, 6–15–21		463		185
Education Services – 0.8%
Laureate Education, Inc.:
10.000%, 9–1–19 (F)(J)		4,152		4,318

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Education Services (Continued)
10.000%, 9–1–19	$	143	$	151
				4,469
Homefurnishing Retail – 0.1%
Restoration Hardware Holdings, Inc., Convertible:
0.000%, 6–15–19 (F)(K)		363		326
0.000%, 7–15–20 (F)(K)		386		325
				651
Hotels, Resorts & Cruise Lines – 0.1%
Carlson Travel, Inc.,
6.750%, 12–15–23 (F)		490		510
Leisure Facilities – 0.0%
AMC Entertainment Holdings, Inc.:
5.875%, 11–15–26 (F)		97		98
6.125%, 5–15–27 (F)		138		139
				237
Movies & Entertainment – 0.4%
AMC Entertainment, Inc.,
5.750%, 6–15–25		440		451
Cinemark USA, Inc.:
5.125%, 12–15–22		147		150
4.875%, 6–1–23		500		505
EMI Music Publishing Group North America Holdings,
7.625%, 6–15–24 (F)		194		211
WMG Acquisition Corp.,
6.750%, 4–15–22 (F)		647		681
				1,998
Publishing – 0.1%
MDC Partners, Inc.,
6.500%, 5–1–24 (F)		362		345
Restaurants – 0.1%
KFC Holding Co., Pizza Hut Holdings LLC and Taco Bell of America LLC,
5.250%, 6–1–26 (F)		500		509
Specialized Consumer Services – 0.3%
Nielsen Co. (Luxembourg) S.a.r.l. (The):
5.500%, 10–1–21 (F)		500		520
5.000%, 2–1–25 (F)		185		184
Nielsen Finance LLC and Nielsen Finance Co.,
5.000%, 4–15–22 (F)		500		511
				1,215
Specialty Stores – 0.3%
Jo-Ann Stores Holdings, Inc. (9.750% Cash or 10.500% PIK),
9.750%, 10–15–19 (F)(H)		1,467		1,420
Jo-Ann Stores, Inc.,
8.125%, 3–15–19 (F)		300		299
				1,719

10 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Tires & Rubber – 0.2%
Goodyear Tire & Rubber Co. (The),
4.875%, 3–15–27	$	998	$	998
Total Consumer Discretionary – 8.5%				45,757
Consumer Staples
Food Distributors – 0.2%
Iceland Bondco plc,
6.750%, 7–15–24 (I)	GBP	200		267
Performance Food Group, Inc.,
5.500%, 6–1–24 (F)	$	142		145
Simmons Foods, Inc.,
7.875%, 10–1–21 (F)		705		740
U.S. Foods, Inc.,
5.875%, 6–15–24 (F)		254		264
				1,416
Food Retail – 0.2%
N&W Global Vending S.p.A.,
7.000%, 10–15–23 (F)(I)	EUR	500		557
Packaged Foods & Meats – 0.5%
AdvancePierre Foods Holdings, Inc.,
5.500%, 12–15–24 (F)	$	289		292
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.),
7.750%, 10–28–20 (F)		400		419
JBS USA LLC and JBS USA Finance, Inc.:
5.875%, 7–15–24 (F)		334		344
5.750%, 6–15–25 (F)		405		408
Lamb Weston Holdings, Inc.,
4.875%, 11–1–26 (F)		230		235
Post Holdings, Inc.:
7.750%, 3–15–24 (F)		330		364
5.500%, 3–1–25 (F)		143		143
8.000%, 7–15–25 (F)		230		258
5.000%, 8–15–26 (F)		100		96
5.750%, 3–1–27 (F)		143		143
				2,702
Personal Products – 0.0%
Revlon Consumer Products Corp.,
5.750%, 2–15–21		76		76
Revlon Escrow Corp.,
6.250%, 8–1–24		50		50
				126
Tobacco – 0.1%
Prestige Brands, Inc.,
5.375%, 12–15–21 (F)		300		307
Total Consumer Staples – 1.0%				5,108
Energy
Integrated Oil & Gas – 0.1%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.):
8.375%, 5–23–21		200		226

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Integrated Oil & Gas (Continued)
6.125%, 1–17–22	$	36	$	38
7.375%, 1–17–27		89		94
PT Perusahaan Gas Negara Tbk,
5.125%, 5–16–24		200		212
				570
Oil & Gas Drilling – 0.3%
KCA Deutag UK Finance plc:
7.250%, 5–15–21 (F)		1,000		935
9.875%, 4–1–22 (F)		418		428
Noble Holding International Ltd.,
7.750%, 1–15–24		166		159
Offshore Drilling Holding S.A.,
8.375%, 9–20–20 (F)(J)		400		172
Rowan Cos., Inc. (GTD by Rowan plc),
7.375%, 6–15–25		97		98
Trinidad Drilling Ltd.,
6.625%, 2–15–25 (F)		9		9
				1,801
Oil & Gas Equipment & Services – 0.1%
Calfrac Holdings L.P. (GTD by Calfrac Well Services Ltd.),
7.500%, 12–1–20 (F)		514		467
SESI LLC,
7.125%, 12–15–21		191		193
				660
Oil & Gas Exploration & Production – 1.0%
Antero Resources Corp.,
5.125%, 12–1–22		285		289
California Resources Corp.,
8.000%, 12–15–22 (F)		183		149
Delek & Avner Tamar Bond Ltd.,
5.082%, 12–30–23 (F)		300		314
Diamondback Energy, Inc.,
4.750%, 11–1–24 (F)		240		241
EnCana Corp.,
6.500%, 8–15–34		162		182
Endeavor Energy Resources L.P.:
7.000%, 8–15–21 (F)		1,594		1,666
8.125%, 9–15–23 (F)		500		531
Gulfport Energy Corp.:
6.625%, 5–1–23		200		202
6.000%, 10–15–24 (F)		200		194
Laredo Petroleum, Inc.,
7.375%, 5–1–22		1,004		1,042
Newfield Exploration Co.,
5.625%, 7–1–24		350		369
ONEOK, Inc.,
7.500%, 9–1–23		350		409
Sinopec Capital (2013) Ltd.,
3.125%, 4–24–23		200		198
				5,786
Oil & Gas Refining & Marketing – 0.3%
Callon Petroleum Co. (GTD by Callon Petroleum Operating Co.),
6.125%, 10–1–24 (F)		332		345

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Refining & Marketing (Continued)
Northern Tier Energy LLC and Northern Tier Finance Corp. (GTD by Northern Tier Energy L.P.),
7.125%, 11–15–20	$	217	$	226
PDC Energy, Inc.,
6.125%, 9–15–24 (F)		48		49
Seven Generations Energy Ltd.:
8.250%, 5–15–20 (F)		447		467
6.750%, 5–1–23 (F)		441		461
				1,548
Oil & Gas Storage & Transportation – 0.1%
Access Midstream Partners L.P.,
4.875%, 5–15–23		103		106
Transportadora de Gas del Peru S.A.,
4.250%, 4–30–28 (F)		255		257
Williams Co., Inc. (The),
4.550%, 6–24–24		570		574
				937
Total Energy – 1.9%				11,302
Financials
Consumer Finance – 0.2%
Cielo S.A. and Cielo USA, Inc.,
3.750%, 11–16–22		200		193
CURO Financial Technologies Corp.,
12.000%, 3–1–22 (F)		195		201
Quicken Loans, Inc.,
5.750%, 5–1–25 (F)		500		491
				885
Diversified Banks – 0.2%
Banco de Credito e Inversiones S.A.,
4.000%, 2–11–23 (F)		200		205
Banco del Estado de Chile,
3.875%, 2–8–22		200		207
BBVA Bancomer S.A.,
6.500%, 3–10–21 (F)		250		274
China Construction Bank Corp.,
3.875%, 5–13–25		200		203
Malayan Banking Berhad,
3.905%, 10–29–26		200		201
Turkiye Is Bankasi A.S.,
5.500%, 4–21–22		200		197
				1,287
Diversified Capital Markets – 0.2%
Patriot Merger Corp.,
9.000%, 7–15–21 (F)		1,224		1,294
Investment Banking & Brokerage – 0.0%
E*TRADE Financial Corp.,
5.875%, 12–29–49		75		77
Other Diversified Financial Services – 0.2%
Balboa Merger Sub, Inc.,
11.375%, 12–1–21 (F)		1,012		1,121

2017 SEMIANNUAL REPORT 11

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Other Diversified Financial Services (Continued)
New Cotai LLC and New Cotai Capital Corp. (10.625% Cash or 10.625% PIK),
10.625%, 5–1–19 (F)(H)	$	283	$	235
				1,356
Property & Casualty Insurance – 0.1%
Hub International Ltd.,
7.875%, 10–1–21 (F)		322		336
Specialized Finance – 0.8%
Arrow Global Finance plc,
5.125%, 9–15–24 (F)(I)	GBP	127		165
Camelot Finance S.A.,
7.875%, 10–15–24 (F)	$	300		319
China Shenua Overseas Capital Co. Ltd. (GTD by Shenhua Hong Kong Ltd.),
3.875%, 1–20–25		200		203
Cosan Luxembourg S.A.,
7.000%, 1–20–27 (F)		200		207
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.:
5.875%, 6–15–21 (F)		58		61
5.450%, 6–15–23 (F)		37		40
7.125%, 6–15–24 (F)		58		64
6.020%, 6–15–26 (F)		73		80
Gaz Capital S.A.,
6.510%, 3–7–22		200		221
GTT Escrow Corp.,
7.875%, 12–31–24 (F)		487		505
King Power Capital Ltd.,
5.625%, 11–3–24		225		249
Mercury BondCo plc (8.250% Cash or 9.000% PIK),
8.250%, 5–30–21 (H)(I)	EUR	182		200
Ooredoo International Finance Ltd.,
3.750%, 6–22–26 (F)	$	200		199
Preferred Term Securities XXIV Ltd., Series A-2 (3-Month U.S. LIBOR plus 38 bps),
1.511%, 3–22–37 (F)(G)		395		250
Preferred Term Securities XXV Ltd., Series A-2 (3-Month U.S. LIBOR plus 35 bps),
1.481%, 6–22–37 (F)(G)		216		135
TMX Finance LLC and TitleMax Finance Corp.,
8.500%, 9–15–18 (F)		1,400		1,288
				4,186
Thrifts & Mortgage Finance – 0.1%
Provident Funding Associates L.P. and PFG Finance Corp.,
6.750%, 6–15–21 (F)		730		745
Total Financials – 1.8%				10,166
Health Care
Health Care Facilities – 0.7%
DaVita HealthCare Partners, Inc.,
5.125%, 7–15–24		97		98

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care Facilities (Continued)
Greatbatch Ltd.,
9.125%, 11–1–23 (F)	$	476	$	502
HCA, Inc. (GTD by HCA Holdings, Inc.),
5.250%, 6–15–26		98		103
MPH Acquisition Holdings LLC,
7.125%, 6–1–24 (F)		371		399
Surgery Center Holdings, Inc.,
8.875%, 4–15–21 (F)		679		718
Tenet Healthcare Corp.:
6.750%, 2–1–20		1,110		1,126
7.500%, 1–1–22 (F)		55		59
8.125%, 4–1–22		1,000		1,043
				4,048
Health Care Supplies – 0.2%
HomeVi SAS (3-Month EURIBOR plus 425 bps),
4.250%, 11–15–21 (F)(G)(I)	EUR	100		108
Kinetic Concepts, Inc. and KCI USA, Inc.,
12.500%, 11–1–21 (F)	$	108		120
Universal Hospital Services, Inc.,
7.625%, 8–15–20		1,037		1,031
				1,259
Managed Health Care – 0.1%
Centene Corp.,
4.750%, 5–15–22		450		462
Pharmaceuticals – 0.4%
Catalent Pharma Solutions, Inc.,
4.750%, 12–15–24 (F)(I)	EUR	100		113
Concordia Healthcare Corp.:
9.500%, 10–21–22 (F)	$	1,807		398
7.000%, 4–15–23 (F)		94		18
IMS Health, Inc.,
5.000%, 10–15–26 (F)		200		201
Jaguar Holding Co. II and Pharmaceutical Product Development LLC,
6.375%, 8–1–23 (F)		322		336
JLL/Delta Dutch Newco B.V.,
7.500%, 2–1–22 (F)		500		528
VPII Escrow Corp.,
7.500%, 7–15–21 (F)		571		501
VRX Escrow Corp.,
5.375%, 3–15–20 (F)		272		243
				2,338
Total Health Care – 1.4%				8,107
Industrials
Aerospace & Defense – 0.5%
KLX, Inc.,
5.875%, 12–1–22 (F)		552		569
Park Aerospace Holdings Ltd.:
5.250%, 8–15–22 (F)		275		286
5.500%, 2–15–24 (F)		366		381
TransDigm, Inc. (GTD by TransDigm Group, Inc.):
6.000%, 7–15–22		297		301

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Aerospace & Defense (Continued)
6.500%, 7–15–24	$	807	$	817
6.375%, 6–15–26		202		202
				2,556
Air Freight & Logistics – 0.1%
XPO Logistics, Inc.:
6.500%, 6–15–22 (F)		254		267
6.125%, 9–1–23 (F)		72		75
				342
Building Products – 0.4%
Alcoa Nederland Holding B.V.:
6.750%, 9–30–24 (F)		200		215
7.000%, 9–30–26 (F)		200		217
Masco Corp.,
4.375%, 4–1–26		110		114
Ply Gem Industries, Inc.,
6.500%, 2–1–22		500		524
Standard Industries, Inc.,
5.500%, 2–15–23 (F)		500		511
Summit Materials LLC and Summit Materials Finance Corp.:
8.500%, 4–15–22		122		135
6.125%, 7–15–23		147		150
WESCO Distribution, Inc. (GTD by WESCO International, Inc.),
5.375%, 6–15–24		81		83
				1,949
Construction & Engineering – 0.1%
AECOM,
5.125%, 3–15–27 (F)		840		842
Diversified Support Services – 0.0%
Ahern Rentals, Inc.,
7.375%, 5–15–23 (F)		133		114
Ritchie Bros. Auctioneers, Inc.,
5.375%, 1–15–25 (F)		162		166
United Rentals (North America), Inc. (GTD by United Rentals, Inc.),
5.875%, 9–15–26		133		139
				419
Environmental & Facilities Services – 0.2%
GFL Environmental, Inc.:
7.875%, 4–1–20 (F)		620		644
9.875%, 2–1–21 (F)		260		281
				925
Railroads – 0.1%
Florida East Coast Holdings Corp. and Florida East Coast Industries LLC,
6.750%, 5–1–19 (F)		654		674
Security & Alarm Services – 0.4%
Constellis Holdings LLC and Constellis Finance Corp.,
9.750%, 5–15–20 (F)		431		461
Prime Security Services Borrower LLC,
9.250%, 5–15–23 (F)		1,403		1,538
				1,999

12 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Trading Companies & Distributors – 0.0%
HD Supply, Inc.,
5.750%, 4–15–24 (F)	$	202	$	212
Total Industrials – 1.8%				9,918
Information Technology
Application Software – 0.8%
Ensemble S Merger Sub, Inc.,
9.000%, 9–30–23 (F)		134		141
Infor (U.S.), Inc.,
5.750%, 5–15–22 (I)	EUR	100		109
JDA Escrow LLC and JDA Bond Finance, Inc.,
7.375%, 10–15–24 (F)	$	240		250
Kronos Acquisition Holdings, Inc.,
9.000%, 8–15–23 (F)		2,187		2,224
OpenText Corp.,
5.875%, 6–1–26 (F)		560		587
Orbcomm, Inc.,
8.000%, 4–1–24		555		555
Riverbed Technolgy, Inc. and Project Homestake Merger Corp.,
8.875%, 3–1–23 (F)		699		714
				4,580
Communications Equipment – 0.1%
West Corp.,
5.375%, 7–15–22 (F)		739		726
Data Processing & Outsourced Services – 0.6%
Alliance Data Systems Corp.:
6.375%, 4–1–20 (F)		130		132
5.875%, 11–1–21 (F)		190		197
5.375%, 8–1–22 (F)		762		768
Italics Merger Sub, Inc.,
7.125%, 7–15–23 (F)		2,145		2,086
				3,183
Internet Software & Services – 0.0%
Alibaba Group Holding Ltd.,
3.600%, 11–28–24		200		201
IT Consulting & Other Services – 0.2%
Cardtronics, Inc. and Cardtronics USA, Inc.,
5.500%, 5–1–25 (F)		141		143
CDW LLC and CDW Finance Corp. (GTD by CDW Corp.),
5.000%, 9–1–25		78		79
NCR Escrow Corp.:
5.875%, 12–15–21		425		443
6.375%, 12–15–23		427		450
				1,115
Semiconductors – 0.3%
Micron Technology, Inc.:
5.875%, 2–15–22		732		765
7.500%, 9–15–23 (F)		730		815
5.500%, 2–1–25		322		334
				1,914

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Technology Hardware, Storage & Peripherals – 0.2%
Western Digital Corp.:
7.375%, 4–1–23 (F)	$	370	$	406
10.500%, 4–1–24		526		619
				1,025
Total Information Technology – 2.2%				12,744
Materials
Aluminum – 0.6%
Constellium N.V.:
8.000%, 1–15–23 (F)		1,000		1,025
5.750%, 5–15–24 (F)		1,000		925
6.625%, 3–1–25 (F)		816		787
Kaiser Aluminum Corp.,
5.875%, 5–15–24		127		132
Novelis Corp. (GTD by Novelis, Inc.):
6.250%, 8–15–24 (F)		160		168
5.875%, 9–30–26 (F)		118		120
				3,157
Construction Materials – 0.1%
Eagle Materials, Inc.,
4.500%, 8–1–26		40		40
Hillman Group, Inc. (The),
6.375%, 7–15–22 (F)		720		687
				727
Diversified Chemicals – 0.3%
PSPC Escrow Corp.,
6.500%, 2–1–22 (F)		280		291
PSPC Escrow II Corp.,
10.375%, 5–1–21 (F)		1,275		1,418
				1,709
Fertilizers & Agricultural Chemicals – 0.1%
Pinnacle Operating Corp.,
9.000%, 5–15–23 (F)		336		335
Metal & Glass Containers – 0.3%
ARD Finance S.A.,
7.125%, 9–15–23 (F)		200		206
BakerCorp International, Inc.,
8.250%, 6–1–19		1,030		963
Guala Closures S.p.A. (3-Month EURIBOR plus 475 bps),
4.445%, 11–15–21 (F)(G)(I)	EUR	100		109
HudBay Minerals, Inc.:
7.250%, 1–15–23 (F)	$	65		69
7.625%, 1–15–25 (F)		98		106
Signode Industrial Group,
6.375%, 5–1–22 (F)		625		641
				2,094
Paper Packaging – 0.2%
Coveris Holdings S.A.,
7.875%, 11–1–19 (F)		300		296
Flex Acquisition Co., Inc.,
6.875%, 1–15–25 (F)		126		129

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)	$	704	$	722
				1,147
Specialty Chemicals – 0.1%
Kraton Polymers LLC and Kraton Polymers Capital Corp.,
7.000%, 4–15–25 (F)		200		203
TPC Group, Inc.,
8.750%, 12–15–20 (F)		166		151
Valvoline Finco Two LLC,
5.500%, 7–15–24 (F)		350		367
				721
Steel – 0.0%
CSN Islands XII Corp.,
7.000%, 9–23–49		61		42
CSN Resources S.A.,
6.500%, 7–21–20		142		118
U.S. Steel Corp.,
8.375%, 7–1–21 (F)		46		51
				211
Total Materials – 1.7%				10,101
Real Estate
Diversified REITs – 0.0%
Country Garden Holdings Co. Ltd.,
4.750%, 9–28–23		200		196
Fibra Uno Administracion S.A. de CV,
5.250%, 1–30–26 (F)		200		201
				397
Health Care REITs – 0.0%
MPT Operating Partnership L.P. and MPT Finance Corp. (GTD by Medical Properties Trust, Inc.),
5.250%, 8–1–26		48		47
Industrial REITs – 0.1%
Aircastle Ltd.:
5.500%, 2–15–22		487		523
5.000%, 4–1–23		257		270
				793
Office REITs – 0.1%
iStar Financial, Inc., Convertible:
5.000%, 7–1–19		315		318
6.500%, 7–1–21		375		385
				703
Real Estate Development – 0.1%
Hub Holdings LLC and Hub Holdings Finance, Inc. (8.125% Cash or 8.875% PIK),
8.125%, 7–15–19 (F)(H)		490		490

2017 SEMIANNUAL REPORT 13

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Real Estate Development (Continued)
Keystone Financing plc,
9.500%, 10–15–19 (I)	GBP	100	$	132
				622
Retail REITs – 0.0%
Link Finance (Cayman) 2009 Ltd.,
2.875%, 7–21–26	$	200		190
Total Real Estate – 0.3%				2,752
Telecommunication Services
Alternative Carriers – 0.4%
CommScope Technologies LLC (GTD by CommScope, Inc.),
5.000%, 3–15–27 (F)		570		568
Consolidated Communications Finance II Co.,
6.500%, 10–1–22		372		357
Level 3 Communications, Inc.,
5.750%, 12–1–22		500		518
Level 3 Escrow II, Inc.,
5.375%, 8–15–22		491		508
Zayo Group LLC and Zayo Capital, Inc.:
6.000%, 4–1–23		63		67
5.750%, 1–15–27 (F)		295		311
				2,329
Integrated Telecommunication Services – 1.0%
Frontier Communications Corp.:
8.875%, 9–15–20		497		524
9.250%, 7–1–21		172		174
6.250%, 9–15–21		500		465
10.500%, 9–15–22		1,225		1,239
11.000%, 9–15–25		423		410
GCI, Inc.,
6.875%, 4–15–25		390		409
Sprint Corp.:
7.250%, 9–15–21		923		997
7.875%, 9–15–23		602		667
7.125%, 6–15–24		500		534
				5,419
Wireless Telecommunication Service – 0.7%
Axiata SPV2 Berhad,
4.357%, 3–24–26		200		208
Bharti Airtel Ltd.,
4.375%, 6–10–25		200		200
Digicel Group Ltd.:
8.250%, 9–30–20 (F)		1,078		925
6.000%, 4–15–21 (F)		364		331
Sable International Finance Ltd.,
6.875%, 8–1–22 (F)		410		435
Sprint Nextel Corp.:
8.375%, 8–15–17		199		203
9.000%, 11–15–18 (F)		133		145
7.000%, 8–15–20		227		244
11.500%, 11–15–21		108		136
T-Mobile USA, Inc.:
6.464%, 4–28–19		300		300
6.731%, 4–28–22		250		259

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Wireless Telecommunication Service (Continued)
6.000%, 4–15–24	$	204	$	218
6.500%, 1–15–26		118		129
Virgin Media Secured Finance plc,
5.500%, 8–15–26 (F)		43		44
				3,777
Total Telecommunication Services – 2.1%				11,525
Utilities
Electric Utilities – 0.0%
Israel Electric Corp. Ltd.,
6.875%, 6–21–23 (F)		200		232
Independent Power Producers & Energy Traders – 0.2%
Pattern Energy Group, Inc., Convertible,
4.000%, 7–15–20		1,113		1,103
Renewable Electricity – 0.2%
Abengoa Yield plc,
7.000%, 11–15–19 (F)		1,020		1,071
Total Utilities – 0.4%				2,406
TOTAL CORPORATE DEBT SECURITIES – 23.1%			$	129,886
(Cost: $126,550)
MORTGAGE-BACKED SECURITIES
Other – 0.3%
Avant Loans Funding Trust, Series 2015-A, Class C,
7.750%, 8–16–21 (F)		203		208
MarketPlace Loan Trust, Series 2015-AV2, Class C,
7.500%, 10–15–21 (F)		139		142
PNMAC GMSR Issuer Trust, Series 2017-GT1 (1-Month U.S. LIBOR plus 475 bps),
5.732%, 2–25–50 (F)(G)		1,500		1,502
				1,852
Other Mortgage-Backed Securities – 1.0%
Avant, Inc., Series 2016, Class B,
7.800%, 9–15–20 (F)		600		622
Great Wolf Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-WFMZ, Class M (1-Month U.S. LIBOR plus 698.8 bps),
7.758%, 5–15–32 (F)(G)		360		369
Madison Park Funding Ltd., Series 2012-10A, Class ER (3-Month U.S. LIBOR plus 762 bps),
8.650%, 1–20–29 (F)(G)		825		835

MORTGAGE-BACKED SECURITIES (Continued)	Principal		Value
Other Mortgage-Backed Securities (Continued)
Northwoods Capital XIV Ltd. and Northwoods Capital XIV LLC, Series 2014-14A, Class D (3-Month U.S. LIBOR plus 395 bps),
4.852%, 11–12–25 (F)(G)	$	1,200	$	1,197
Waldorf Astoria Boca Raton Trust, Commercial Mortgage Pass-Through Certificates, Series 2016-BOCA, Class F (1-Month U.S. LIBOR plus 550 bps),
6.270%, 6–15–29 (F)(G)		2,500		2,507
				5,530
TOTAL MORTGAGE-BACKED SECURITIES – 1.3%			$	7,382
(Cost: $7,311)
OTHER GOVERNMENT SECURITIES (L)
Columbia – 0.1%
Republic of Colombia,
4.375%, 7–12–21		200		211
Luxembourg – 0.0%
Amigo Luxembourg S.A.,
7.625%, 1–15–24 (F)(I)	GBP	100		129
Mexico – 0.0%
United Mexican States,
3.625%, 3–15–22	$	100		103
TOTAL OTHER GOVERNMENT SECURITIES – 0.1%			$	443
(Cost: $432)
LOANS (G)
Consumer Discretionary
Advertising – 0.1%
Advantage Sales & Marketing, Inc. (ICE LIBOR plus 650 bps),
7.500%, 7–25–22		400		387
Apparel Retail – 0.2%
Badger Sportswear, Inc. (ICE LIBOR plus 450 bps),
5.500%, 9–23–22 (E)		406		404
Talbots, Inc. (The) (ICE LIBOR plus 450 bps),
5.500%, 3–19–20		542		484
Talbots, Inc. (The) (ICE LIBOR plus 850 bps),
9.500%, 3–19–21		422		359
True Religion Apparel, Inc. (ICE LIBOR plus 487.5 bps),
6.022%, 7–30–19		470		99
				1,346
Apparel, Accessories & Luxury Goods – 0.0%
Oak Parent, Inc. (ICE LIBOR plus 450 bps),
5.500%, 10–26–23		189		190

14 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

LOANS (G) (Continued)	Principal		Value
Automotive Retail – 0.2%
Caliber Collision Centers, Inc.,
0.000%, 2–1–24 (M)	$	285	$	287
Euro Garages (ICE LIBOR plus 550 bps),
5.757%, 1–31–23 (I)	GBP	480		602
Tectum Holdings, Inc. (ICE LIBOR plus 475 bps):
5.802%, 8–10–23	$	234		237
5.897%, 8–10–23		64		65
				1,191
Broadcasting – 0.3%
Beasley Broadcast Group, Inc. (ICE LIBOR plus 600 bps),
7.000%, 11–1–23 (E)		313		317
CBS Radio, Inc. (ICE LIBOR plus 350 bps),
4.500%, 10–17–23		316		318
Entercom Communications Corp. (ICE LIBOR plus 350 bps):
4.500%, 11–1–23		18		18
4.555%, 11–1–23		219		220
6.500%, 11–1–23		2		2
Learfield Communications, Inc. (ICE LIBOR plus 325 bps),
4.250%, 12–1–23 (E)		349		352
Nexstar Broadcasting Group, Inc. (ICE LIBOR plus 300 bps),
3.943%, 1–17–24		258		260
				1,487
Cable & Satellite – 0.3%
Charter Communicatons, Inc. (ICE LIBOR plus 200 bps),
2.990%, 1–15–22		228		228
CSC Holdings LLC:
0.000%, 7–15–25 (M)		69		69
0.000%, 7–17–25 (M)		216		215
Eircom Finco S.a.r.l.,
0.000%, 3–10–24 (I)(M)	EUR	250		266
Eircom Finco S.a.r.l. (3-Month EURIBOR plus 400 bps),
4.000%, 5–31–22 (I)		229		243
Hargray Communications Corp.,
0.000%, 3–24–24 (M)	$	285		285
				1,306
Casinos & Gaming – 0.4%
Cosmopolitan of Las Vegas (The) (1-Month U.S. LIBOR plus 635 bps),
7.263%, 11–9–18		1,400		1,411
Gateway Casinos & Entertainment Ltd. (ICE LIBOR plus 375 bps),
4.800%, 2–22–23		134		135
Global Cash Access Holdings, Inc. (ICE LIBOR plus 525 bps),
6.304%, 12–19–20 (E)		295		298
Penn National Gaming, Inc. (ICE LIBOR plus 250 bps),
3.524%, 1–19–24		280		281

LOANS (G) (Continued)	Principal		Value
Casinos & Gaming (Continued)
PNK Entertainment, Inc. (ICE LIBOR plus 300 bps),
3.990%, 4–28–23	$	58	$	59
Scientific Games Corp. (ICE LIBOR plus 400 bps):
4.846%, 10–1–21		178		180
4.943%, 10–1–21		1		1
				2,365
Department Stores – 0.2%
Belk, Inc.,
0.000%, 12–10–22 (M)		151		127
Belk, Inc. (ICE LIBOR plus 475 bps),
5.760%, 12–10–22		841		708
J.C. Penney Co., Inc. (ICE LIBOR plus 425 bps),
5.304%, 6–23–23		237		235
				1,070
General Merchandise Stores – 0.4%
BJ’s Wholesale Club, Inc. (ICE LIBOR plus 375 bps),
4.750%, 1–26–24		1,220		1,191
BJ’s Wholesale Club, Inc. (ICE LIBOR plus 750 bps),
8.500%, 1–26–25		956		931
				2,122
Home Furnishings – 0.2%
Serta Simmons Bedding LLC (ICE LIBOR plus 350 bps),
4.538%, 11–8–23		240		241
Serta Simmons Bedding LLC (ICE LIBOR plus 800 bps),
9.038%, 11–8–24		691		693
				934
Hotels, Resorts & Cruise Lines – 0.7%
Bre Diamond Mezz 1 LLC and Bre Diamond Lessee Mezz 1 LLC (1-Month U.S. LIBOR plus 600 bps),
7.413%, 12–8–17		1,883		1,903
Extended Stay America, Inc. and ESH Hopitality, Inc. (ICE LIBOR plus 300 bps),
3.482%, 8–30–23		348		350
Hotel del Coronado (1-Month U.S. LIBOR plus 600 bps),
6.913%, 12–9–17		460		464
Hudson Delano Senior Mezz LLC (1-Month U.S. LIBOR plus 650 bps),
7.413%, 2–9–20		1,700		1,707
Travel Leaders Group LLC (ICE LIBOR plus 525 bps),
6.232%, 1–19–24		340		344
				4,768
Housewares & Specialties – 0.2%
KIK Custom Products, Inc.,
0.000%, 11–19–21 (M)		80		80
KIK Custom Products, Inc. (ICE LIBOR plus 450 bps),
5.653%, 8–26–22		444		450

LOANS (G) (Continued)	Principal			Value
Housewares & Specialties (Continued)
KIK Custom Products, Inc. (ICE LIBOR plus 475 bps),
5.250%, 11–19–21	$	417		$	417
					947
Leisure Facilities – 0.1%
Equinox Holdings, Inc.,
0.000%, 3–2–24 (M)		285			287
SeaWorld Entertainment, Inc. (ICE LIBOR plus 225 bps),
3.248%, 5–14–20		237			236
					523
Movies & Entertainment – 0.0%
Formula One Holdings Ltd. and Delta Two S.a.r.l. (ICE LIBOR plus 375 bps),
4.568%, 7–30–21		143			143
Publishing – 0.2%
Bureau Van Dijk Electronic Publishing B.V. (ICE LIBOR plus 425 bps),
4.843%, 9–23–21 (I)	GBP	551			693
Thomson Reuters Corp. (ICE LIBOR plus 375 bps),
4.750%, 10–3–23	$	398			398
					1,091
Restaurants – 0.1%
NPC International, Inc.:
0.000%, 3–30–24 (M)		141			142
0.000%, 3–30–25 (E)(M)		443			446
					588
Specialized Consumer Services – 0.2%
Asurion LLC (ICE LIBOR plus 325 bps),
4.232%, 7–8–20		252			253
Asurion LLC (ICE LIBOR plus 750 bps),
8.500%, 3–3–21		240			243
Mister Car Wash Holdings, Inc. (ICE LIBOR plus 425 bps):
5.250%, 8–21–21		398			401
5.270%, 8–21–21		80			80
					977
Specialty Stores – 0.2%
Academy Sports + Outdoors,
0.000%, 7–2–22 (M)		5			4
Academy Sports + Outdoors (ICE LIBOR plus 400 bps):
5.000%, 7–2–22		—	*		—	*
5.039%, 7–2–22		14			10
5.102%, 7–2–22		14			10
Academy Sports + Outdoors (ICE LIBOR plus 500 bps),
5.000%, 7–2–22		6			4
GNC Holdings, Inc. (ICE LIBOR plus 250 bps),
3.490%, 3–4–19		239			204
Jo-Ann Stores, Inc. (ICE LIBOR plus 500 bps),
6.256%, 10–21–23		351			345

2017 SEMIANNUAL REPORT 15

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

LOANS (G) (Continued)	Principal		Value
Specialty Stores (Continued)
Leslie’s Poolmart, Inc. (ICE LIBOR plus 425 bps),
4.774%, 8–16–23	$	299	$	299
PETCO Animal Supplies, Inc.,
0.000%, 1–26–23 (M)		11		10
PETCO Animal Supplies, Inc. (ICE LIBOR plus 325 bps),
4.287%, 1–26–23		243		228
				1,114
Total Consumer Discretionary – 4.0%				22,549
Consumer Staples
Distillers & Vintners – 0.1%
Constellation Brands, Inc. (ICE LIBOR plus 375 bps),
4.887%, 12–16–23		349		352
Food Distributors – 0.1%
Chefs’ Warehouse, Inc. (The) (ICE LIBOR plus 575 bps),
6.750%, 6–22–22		380		383
Dole Food Co., Inc.,
0.000%, 3–24–24 (M)		285		287
				670
Hypermarkets & Super Centers – 0.0%
Albertsons Cos. LLC (ICE LIBOR plus 325 bps),
4.302%, 6–23–23		179		180
Packaged Foods & Meats – 0.1%
Shearer’s Foods LLC (ICE LIBOR plus 675 bps),
7.897%, 6–30–22 (E)		500		485
Personal Products – 0.1%
Revlon Consumer Products Corp. (ICE LIBOR plus 350 bps),
4.482%, 9–7–23		478		477
Soft Drinks – 0.1%
V Group, Inc.,
0.000%, 3–9–24 (M)		285		285
Tobacco – 0.0%
Prestige Brands, Inc. (ICE LIBOR plus 275 bps),
3.732%, 1–26–24		276		278
Total Consumer Staples – 0.5%				2,727
Energy
Coal & Consumable Fuels – 0.4%
Foresight Energy LLC,
0.000%, 3–16–22 (M)		1,299		1,262
Peabody Energy Corp.,
0.000%, 9–24–18 (M)		570		578
Westmoreland Coal Co. (ICE LIBOR plus 650 bps),
7.647%, 12–16–20 (E)		995		918
				2,758

LOANS (G) (Continued)	Principal		Value
Oil & Gas Drilling – 0.1%
KCA Deutag Alpha Ltd. (ICE LIBOR plus 525 bps),
6.307%, 5–16–20	$	367	$	349
Oil & Gas Exploration & Production – 0.2%
Chesapeake Energy Corp. (ICE LIBOR plus 750 bps),
8.553%, 8–23–21		1,153		1,227
Total Energy – 0.7%				4,334
Financials
Asset Management & Custody Banks – 0.0%
CRCI Holdings, Inc. (ICE LIBOR plus 550 bps),
6.647%, 8–31–23		253		253
Insurance Brokers – 0.1%
NFP Corp. (ICE LIBOR plus 350 bps),
4.647%, 1–8–24		444		448
Multi-Line Insurance – 0.0%
Alliant Holdings Intermediate LLC (ICE LIBOR plus 350 bps),
4.387%, 8–14–22		248		249
Multi-Sector Holdings – 0.1%
TKC Holdings, Inc. (ICE LIBOR plus 375 bps),
4.750%, 2–1–23		285		288
Other Diversified Financial Services – 0.3%
Brightwood Capital Advisors LLC (1-Month U.S. LIBOR plus 495 bps),
5.640%, 4–29–23		470		482
Dubai World Group (2.000% Cash or 3.750% PIK):
0.000%, 9–30–22 (H)(M)		110		96
2.000%, 9–30–22 (H)		168		147
Institutional Shareholder Services, Inc. (ICE LIBOR plus 450 bps),
5.606%, 4–30–21 (E)		748		751
				1,476
Property & Casualty Insurance – 0.1%
AmWINS Group, Inc. (ICE LIBOR plus 275 bps),
3.750%, 1–25–24		284		284
Specialized Finance – 0.4%
AqGen Island Intermediate Holdings, Inc. (ICE LIBOR plus 400 bps),
5.024%, 12–3–22		193		194
ASP Henry Merger Sub, Inc. (ICE LIBOR plus 450 bps),
5.500%, 9–30–23		349		354
Bre RC Mezz 1 LLC and Bre RC Exeter Mezz 1 LLC (1-Month U.S. LIBOR plus 700 bps),
7.913%, 5–24–18		858		862
Edelman Financial Center LLC (ICE LIBOR plus 550 bps),
6.515%, 12–16–22		217		218

LOANS (G) (Continued)	Principal		Value
Specialized Finance (Continued)
Helix Gen Funding LLC,
0.000%, 3–10–24 (M)	$	285	$	289
TransUnion (ICE LIBOR plus 275 bps),
3.482%, 4–9–21		119		119
Vertiv Intermediate Holding Corp. (ICE LIBOR plus 400 bps):
5.000%, 11–30–23		114		115
5.039%, 11–30–23		394		397
Ziggo Secured Finance B.V. (ICE LIBOR plus 250 bps),
3.412%, 4–25–25		285		285
				2,833
Total Financials – 1.0%				5,831
Health Care
Biotechnology – 0.1%
Avantor Performance Materials Holdings, Inc.,
0.000%, 3–10–24 (M)		12		12
Avantor Performance Materials Holdings, Inc. (ICE LIBOR plus 400 bps),
5.000%, 3–9–24		273		275
				287
Health Care Equipment – 0.2%
eResearch Technology, Inc. (ICE LIBOR plus 500 bps),
6.035%, 5–3–23		611		617
Lantheus Medical Imaging, Inc.,
0.000%, 6–30–22 (E)(M)		285		285
Patterson Medical Holdings, Inc. (ICE LIBOR plus 475 bps),
5.750%, 8–28–22		250		252
				1,154
Health Care Facilities – 0.1%
Select Medical Corp. (ICE LIBOR plus 350 bps),
4.500%, 3–6–24		280		283
Team Health Holdings, Inc. (ICE LIBOR plus 275 bps),
3.750%, 2–6–24		192		190
				473
Health Care Services – 0.4%
ExamWorks Group, Inc. (ICE LIBOR plus 325 bps),
4.232%, 7–27–23		249		250
Genoa LLC (ICE LIBOR plus 375 bps),
4.897%, 10–28–23		249		250
SavaSeniorCare LLC (1-Month U.S. LIBOR plus 730 bps),
8.213%, 10–11–18		1,500		1,503
Schumacher Group (ICE LIBOR plus 400 bps),
5.000%, 7–31–22		207		207
				2,210

16 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

LOANS (G) (Continued)	Principal		Value
Health Care Technology – 0.2%
BioClinica Holding I L.P. (ICE LIBOR plus 425 bps),
5.250%, 10–20–23	$	349	$	352
Change Healthcare Holdings LLC,
0.000%, 3–1–24 (M)		392		394
QuintilesIMS, Inc. (3-Month EURIBOR plus 200 bps),
2.750%, 3–6–24 (I)	EUR	249		266
				1,012
Pharmaceuticals – 0.3%
Ceva Sante Animale (3-Month EURIBOR plus 300 bps),
3.750%, 6–30–21 (I)		270		290
Ethypharm,
0.000%, 7–21–23 (I)(M)	GBP	500		630
Ethypharm (3-Month EURIBOR plus 500 bps),
5.000%, 7–1–23 (I)	EUR	229		245
Pharmaceutical Product Development, Inc. (ICE LIBOR plus 325 bps):
4.250%, 8–18–22	$	117		117
4.397%, 8–18–22		132		132
Valeant Pharmaceuticals International, Inc.,
0.000%, 4–1–22 (M)		6		6
Valeant Pharmaceuticals International, Inc. (ICE LIBOR plus 475 bps),
5.570%, 4–1–22		303		304
				1,724
Total Health Care – 1.3%				6,860
Industrials
Aerospace & Defense – 0.2%
CPI International, Inc.,
0.000%, 4–7–21 (M)		285		286
Engility Holdings, Inc. and Engility Corp. (ICE LIBOR plus 425 bps),
4.232%, 8–12–20		88		89
Engility Holdings, Inc. and Engility Corp. (ICE LIBOR plus 475 bps),
4.750%, 8–12–23		183		184
Engility Holdings, Inc. and Engility Corp. (Prime rate plus 275 bps),
6.750%, 8–12–23		2		2
Tronair, Inc. (1-Month U.S. LIBOR plus 475 bps),
5.856%, 9–8–23 (E)		348		344
Tronair, Inc. (Prime rate plus 375 bps),
8.500%, 9–8–23 (E)		1		1
				906
Airlines – 0.0%
Air Canada (ICE LIBOR plus 275 bps),
3.755%, 10–6–23		230		231

LOANS (G) (Continued)	Principal			Value
Building Products – 0.2%
C.H.I. Overhead Doors, Inc. (ICE LIBOR plus 375 bps),
4.250%, 7–31–22	$	547		$	547
IPS Structural Adhesives Holdings, Inc. and IPS Intermediate Holdings, Inc. (ICE LIBOR plus 525 bps),
6.250%, 12–20–23 (E)		301			302
					849
Construction & Engineering – 0.1%
K&G Engineering, Inc. (ICE LIBOR plus 475 bps),
5.750%, 10–20–23 (E)		374			375
Pike Corp. (ICE LIBOR plus 375 bps),
4.750%, 3–10–24		215			217
					592
Diversified Support Services – 0.3%
American Residential Services LLC,
0.000%, 6–30–21 (E)(M)		427			426
GCA Services Group, Inc. (ICE LIBOR plus 475 bps):
5.774%, 3–1–23		62			62
6.009%, 3–1–23		56			56
6.040%, 3–1–23		49			49
6.068%, 3–1–23		59			59
IMG Worldwide, Inc. (ICE LIBOR plus 425 bps):
4.250%, 5–6–21		1			1
4.290%, 5–6–21		279			280
Solera LLC and Solera Finance, Inc. (ICE LIBOR plus 475 bps),
4.250%, 3–3–23		507			510
					1,443
Electrical Components & Equipment – 0.2%
Power Products LLC (ICE LIBOR plus 450 bps),
5.530%, 3–10–23		570			574
SLV Holding GmbH (3-Month EURIBOR plus 425 bps),
4.250%, 12–16–23 (I)	EUR	600			643
					1,217
Environmental & Facilities Services – 0.1%
Casella Waste Systems, Inc. (ICE LIBOR plus 300 bps),
3.943%, 10–17–23	$	349			351
United Site Services, Inc.,
0.000%, 8–11–23 (M)		24			24
United Site Services, Inc. (3-Month U.S. LIBOR plus 450 bps),
7.500%, 8–11–23		1			1
United Site Services, Inc. (4-Month U.S. LIBOR plus 450 bps),
7.500%, 8–11–23		—	*		—	*
United Site Services, Inc. (ICE LIBOR plus 450 bps),
5.500%, 8–11–23		424			425
					801

LOANS (G) (Continued)	Principal		Value
Human Resource & Employment Services – 0.2%
Cast & Crew Payroll LLC (ICE LIBOR plus 350 bps),
4.650%, 8–3–22	$	368	$	368
Oasis Outsourcing Holdings, Inc. (ICE LIBOR plus 475 bps),
5.750%, 12–24–21 (E)		496		497
				865
Industrial Conglomerates – 0.2%
Crosby Worldwide Ltd. (ICE LIBOR plus 300 bps),
4.052%, 11–22–20		178		163
PAE Holding Corp. (ICE LIBOR plus 550 bps),
6.500%, 10–20–22		782		789
PAE Holding Corp. (ICE LIBOR plus 950 bps),
10.500%, 10–20–23		68		68
				1,020
Industrial Machinery – 0.1%
Dynacast International LLC (ICE LIBOR plus 850 bps),
9.500%, 1–30–23 (E)		554		553
Morsco, Inc. (ICE LIBOR plus 700 bps),
8.000%, 10–31–23		99		100
				653
Marine Ports & Services – 0.0%
Carrix, Inc. (1-Month U.S. LIBOR plus 350 bps),
5.500%, 1–7–19		205		201
Research & Consulting Services – 0.1%
Information Resources, Inc. (ICE LIBOR plus 425 bps),
5.250%, 1–18–23		285		288
Security & Alarm Services – 0.1%
U.S. Security Associates Holdings, Inc. (ICE LIBOR plus 500 bps),
6.024%, 7–14–23		249		252
Verisure Holding AB (3-Month EURIBOR plus 325 bps),
3.750%, 12–5–23 (I)	EUR	240		258
				510
Trading Companies & Distributors – 0.1%
Arctic Glacier USA, Inc. (ICE LIBOR plus 425 bps),
5.250%, 3–13–24	$	285		288
Cole-Palmer Instrument Co. LLC,
0.000%, 3–21–24 (M)		29		30
TMK Hawk Parent Corp. (ICE LIBOR plus 400 bps),
5.000%, 10–1–21		278		280
				598
Total Industrials – 1.9%				10,174

2017 SEMIANNUAL REPORT 17

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

LOANS (G) (Continued)	Principal		Value
Information Technology
Application Software – 0.9%
Applied Systems, Inc. (ICE LIBOR plus 650 bps),
7.647%, 1–23–22	$	841	$	846
Aptean Holdings, Inc. (ICE LIBOR plus 500 bps),
6.000%, 12–19–22		280		284
CCC Information Services, Inc.:
0.000%, 3–31–24 (E)(M)		285		286
0.000%, 3–31–25 (E)(M)		285		288
Infor, Inc. and Infor (U.S.), Inc. (ICE LIBOR plus 275 bps),
3.897%, 2–2–22		166		165
Ministry Brands LLC (1-Month U.S. LIBOR plus 500 bps),
6.000%, 9–30–22		376		371
Ministry Brands LLC (ICE LIBOR plus 500 bps),
6.000%, 12–30–17		103		103
Misys plc and Magic Newco LLC,
12.000%, 6–12–19 (E)		2,375		2,488
Synchronoss Technologies, Inc. (ICE LIBOR plus 275 bps),
4.082%, 1–19–24		280		278
TIBCO Software, Inc. (ICE LIBOR plus 450 bps),
5.500%, 12–4–20		495		500
Vertafore, Inc. (ICE LIBOR plus 325 bps),
4.250%, 6–17–23		231		232
				5,841
Communications Equipment – 0.0%
Ciena Corp. (ICE LIBOR plus 250 bps),
3.478%, 1–30–22 (E)		194		195
Data Processing & Outsourced Services – 0.2%
Colorado Buyer, Inc.:
0.000%, 3–15–24 (M)		285		287
0.000%, 3–15–25 (M)		160		161
First Data Corp. (ICE LIBOR plus 300 bps),
3.984%, 3–24–21		115		116
FirstLight Fiber (ICE LIBOR plus 500 bps),
6.320%, 9–7–21 (E)		200		200
Survey Sampling International (ICE LIBOR plus 500 bps),
6.000%, 12–16–20		204		204
				968
Electronic Equipment & Instruments – 0.0%
Global Tel Link Corp. (ICE LIBOR plus 775 bps),
9.000%, 11–20–20		120		119
Internet Software & Services – 0.2%
Ancestry.com LLC (ICE LIBOR plus 825 bps),
9.270%, 10–19–24		204		209

LOANS (G) (Continued)	Principal		Value
Internet Software & Services (Continued)
FirstLight Fiber (3-Month U.S. LIBOR plus 500 bps),
6.320%, 8–29–21 (E)	$	450	$	450
TravelCLICK, Inc. & TCH-2 Holdings LLC (ICE LIBOR plus 450 bps),
5.500%, 5–12–21 (E)		499		504
				1,163
IT Consulting & Other Services – 0.1%
LANDesk Group, Inc. (ICE LIBOR plus 425 bps),
5.250%, 1–19–24		303		304
Triple Point Group Holdings, Inc.,
0.000%, 7–13–20 (M)		285		265
				569
Semiconductors – 0.0%
Micron Technology, Inc. (ICE LIBOR plus 375 bps),
4.740%, 4–26–22		238		239
Systems Software – 0.1%
Optiv, Inc. (ICE LIBOR plus 325 bps),
4.250%, 2–1–24		220		221
Optiv, Inc. (ICE LIBOR plus 725 bps),
8.250%, 2–1–25		74		75
				296
Technology Hardware, Storage & Peripherals – 0.2%
Dell, Inc. (ICE LIBOR plus 225 bps),
3.240%, 9–7–21		494		493
SnapAv LLC (ICE LIBOR plus 500 bps),
6.156%, 12–21–22 (E)		283		280
Vision Solutions, Inc. (1-Month U.S. LIBOR plus 650 bps):
7.500%, 6–16–22		4		4
7.637%, 6–16–22		564		563
				1,340
Total Information Technology – 1.7%				10,730
Materials
Commodity Chemicals – 0.2%
Chromaflo Technologies Corp. (ICE LIBOR plus 400 bps),
5.000%, 11–18–23		100		101
ILPEA Parent, Inc. (ICE LIBOR plus 550 bps),
6.500%, 3–2–23 (E)		536		534
Niacet Corp. (EURIBOR plus 450 bps),
5.500%, 2–1–24 (I)	EUR	98		105
Niacet Corp. (ICE LIBOR plus 450 bps),
5.647%, 2–1–24 (E)	$	179		178
				918
Construction Materials – 0.1%
Associated Asphalt Partners LLC,
0.000%, 3–30–24 (M)		285		286

LOANS (G) (Continued)	Principal		Value
Metal & Glass Containers – 0.0%
Anchor Glass Container Corp. (ICE LIBOR plus 325 bps),
4.250%, 12–7–23	$	21	$	21
BWAY Corp.,
0.000%, 3–23–24 (M)		158		158
				179
Paper Packaging – 0.3%
Caraustar Industries, Inc. (ICE LIBOR plus 550 bps),
6.647%, 3–9–22		285		287
Flex Acquisition Holdings, Inc. (ICE LIBOR plus 325 bps),
4.250%, 12–29–23		280		281
FPC Holdings, Inc.,
0.000%, 5–27–20 (M)		1,140		1,003
Reynolds Group Holdings Ltd. (ICE LIBOR plus 300 bps),
3.982%, 2–5–23		307		308
				1,879
Specialty Chemicals – 0.2%
Ferro Corp. (ICE LIBOR plus 250 bps),
3.536%, 2–14–24		285		286
Styrolution Group GmbH (ICE LIBOR plus 375 bps),
4.750%, 9–30–21		399		400
Versum Materials, Inc. (ICE LIBOR plus 250 bps),
3.647%, 9–30–23		269		271
				957
Total Materials – 0.8%				4,219
Real Estate
Diversified Real Estate Activities – 0.1%
Capital Automotive L.P. (ICE LIBOR plus 300 bps),
4.000%, 3–24–24 (E)		285		288
Hotel & Resort REITs – 0.1%
Park Hotels & Resorts, Inc. (ICE LIBOR plus 425 bps),
4.507%, 2–9–24 (I)	GBP	600		760
Industrial REITs – 0.2%
Avolon Holdings Ltd. (ICE LIBOR plus 275 bps),
3.728%, 1–20–22	$	299		303
Terra Millennium Corp. (ICE LIBOR plus 625 bps),
7.250%, 10–31–22 (E)		557		554
				857
Office REITs – 0.1%
BioMed Realty Trust, Inc. (1-Month U.S. LIBOR plus 800 bps),
8.913%, 2–9–18		111		113
iStar Financial, Inc. (ICE LIBOR plus 450 bps),
4.750%, 7–1–20		249		251
				364

18 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

LOANS (G) (Continued)	Principal		Value
Real Estate Operating Companies – 0.3%
Workspace Property Trust (1-Month U.S. LIBOR plus 675 bps),
7.663%, 10–9–18	$	1,500	$	1,506
Retail REITs – 0.2%
Inland Retail Real Estate Trust, Inc. (1-Month U.S. LIBOR plus 650 bps),
7.285%, 4–1–19		1,356		1,369
Specialized REITs – 0.0%
AWAS Aviation Capital Ltd. (ICE LIBOR plus 325 bps),
4.360%, 6–10–18		206		207
Total Real Estate – 1.0%				5,351
Telecommunication Services
Alternative Carriers – 0.1%
Level 3 Financing, Inc.,
0.000%, 2–22–24 (M)		280		280
Lightower Fiber Networks (ICE LIBOR plus 325 bps),
4.397%, 4–13–20		222		223
Zayo Group LLC (ICE LIBOR plus 200 bps),
3.500%, 1–19–21		280		281
				784
Integrated Telecommunication Services – 0.2%
GTT Communications, Inc. (ICE LIBOR plus 400 bps),
5.000%, 1–9–24		279		283
Sprint Communications, Inc. (ICE LIBOR plus 250 bps),
3.500%, 2–2–24		570		569
				852
Total Telecommunication Services – 0.3%				1,636

LOANS (G) (Continued)	Principal		Value
Utilities
Electric Utilities – 0.3%
Westinghouse Electric Co. LLC,
0.000%, 3–29–18 (M)	$	1,125	$	1,097
Westinghouse Electric Co. LLC (ICE LIBOR plus 625 bps),
7.250%, 3–29–18		875		853
				1,950
Total Utilities – 0.3%				1,950
TOTAL LOANS – 13.5%			$	76,361
(Cost: $75,874)
SHORT-TERM SECURITIES
Commercial Paper (N) – 9.5%
Bemis Co., Inc.,
1.130%, 4–10–17		3,000		2,999
BorgWarner, Inc.:
1.140%, 4–4–17		5,000		4,999
1.100%, 4–13–17		3,000		2,999
Ecolab, Inc.:
1.151%, 4–4–17		3,000		3,000
1.140%, 4–11–17		1,600		1,599
Kroger Co. (The),
1.150%, 4–3–17		6,010		6,009
Medtronic Global Holdings SCA,
1.100%, 4–10–17		5,000		4,998
Mondelez International, Inc.,
1.100%, 4–7–17		3,000		2,999
NBCUniversal Enterprise, Inc.,
1.220%, 4–27–17		4,000		3,996
Northern Illinois Gas Co.,
1.090%, 4–6–17		4,000		3,999
River Fuel Co. #2, Inc. (GTD by Bank of Nova Scotia),
0.940%, 4–28–17		7,000		6,996

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (N) (Continued)
Sysco Corp.,
1.090%, 4–3–17	$	8,798	$	8,798
				53,391
Master Note – 2.0%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.190%, 4–5–17 (O)		10,903		10,903
Municipal Obligations – 0.5%
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.) (BVAL plus 7 bps),
0.860%, 4–7–17 (O)		3,000		3,000
United States Government Agency Obligations – 1.0%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate),
0.870%, 4–7–17 (O)		5,850		5,850
TOTAL SHORT-TERM SECURITIES – 13.0%			$	73,144
(Cost: $73,146)
TOTAL INVESTMENT SECURITIES – 101.6%			$	572,384
(Cost: $551,923)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.6)%				(8,752	)
NET ASSETS – 100.0%			$	563,632

Notes to Schedule of Investments

* Not shown due to rounding.

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

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

(C) All or a portion of securities with an aggregate value of $146 are held in collateralized accounts for OTC derivatives collateral and is governed by International Swaps and Derivatives Association, Inc. Master Agreements.

(D) Restricted security. At March 31, 2017, the Fund owned the following restricted security:

Security	Acquisition Date(s)		Shares		Cost		Market Value
Pinnacle Agriculture Enterprises LLC		3–10–17		233	$	106	$	106

The total value of this security represented 0.0% of net assets at March 31, 2017.

(E) Securities whose value was determined using significant unobservable inputs.

(F) Securities were purchased pursuant to an exemption from registration available under Rule 144A under the Securities Act of 1933 and may only be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2017 the total value of these securities amounted to $102,575 or 18.2% of net assets.

2017 SEMIANNUAL REPORT 19

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

(G) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

(H) Payment-in-kind bond which may pay interest in additional par and/or in cash. Rates shown are the current rate and possible payment rates.

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

(J) Step bond that pays an initial coupon rate for the first period and then a higher or lower coupon rate for the following periods. Interest rate disclosed is that which is in effect at March 31, 2017.

(K) Zero coupon bond.

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

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

(N) Rate shown is the yield to maturity at March 31, 2017.

(O) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description.

The following forward foreign currency contracts were outstanding at March 31, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		14,430	U.S. Dollar		17,870	4–21–17	Citibank N.A.	$	—	$	217
Euro		23,502	U.S. Dollar		25,310	4–21–17	Citibank N.A.		219		—
Japanese Yen		363,735	U.S. Dollar		3,230	4–21–17	Citibank N.A.		—		39
British Pound		2,250	U.S. Dollar		2,816	6–30–17	JPMorgan Securities LLC		—		9
Euro		3,320	U.S. Dollar		3,602	6–30–17	JPMorgan Securities LLC		45		—
Canadian Dollar		300	U.S. Dollar		225	4–21–17	Morgan Stanley International		—		1
Euro		717	U.S. Dollar		774	4–21–17	Morgan Stanley International		9		—
								$	273	$	266

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of March 31, 2017. 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	$	278,632	$	—	$	—
Preferred Stocks		—		—		106
Asset-Backed Securities		—		6,430		—
Corporate Debt Securities		—		129,886		—
Mortgage-Backed Securities		—		7,382		—
Other Government Securities		—		443		—
Loans		—		63,362		12,999
Short-Term Securities		—		73,144		—
Total	$	278,632	$	280,647	$	13,105
Forward Foreign Currency Contracts	$	—	$	273	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	266	$	—

20 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO MULTI-ASSET INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

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

	Preferred Stocks			Loans
Beginning Balance 10–1–16	$	—		$	5,001
Net realized gain (loss)		—			3
Net change in unrealized appreciation (depreciation)		—	*		104
Purchases		106			9,358
Sales		—			(1,365	)
Amortization/Accretion of premium/discount		—			(8	)
Transfers into Level 3 during the period		—			1,926
Transfers out of Level 3 during the period		—			(2,020	)
Ending Balance 3–31–17	$	106		$	12,999
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 3–31–17	$	—	*	$	113

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 March 31, 2017, there were no transfers between Levels 1 and 2.

Information about Level 3 fair value measurements:

	Fair Value at 3–31–17		Valuation Technique(s)	Unobservable Input(s)
Assets
Preferred Stocks	$	106	Broker quotes	Broker quotes
Loans		12,999	Third-party vendor service	Broker quotes

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

BVAL = Bloomberg Valuation Municipal AAA Benchmark

CLO = Collateralized Loan Obligation

EURIBOR = Euro Interbank Offered Rate

GTD = Guaranteed

ICE = IntercontinentalExchange

LIBOR = London Interbank Offered Rate

PIK = Payment in kind

REIT = Real Estate Investment Trust

TB = Treasury Bill

Country Diversification
(as a % of net assets)
United States	52.1%
United Kingdom	9.1%
France	5.7%
Netherlands	3.3%
Canada	3.1%
Japan	2.6%
Luxembourg	1.7%

Country Diversification (Continued)
Hong Kong	1.4%
Germany	1.3%
Spain	1.1%
Italy	1.0%
Other Countries	6.2%
Other+	11.4%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 21

PORTFOLIO HIGHLIGHTS IVY APOLLO STRATEGIC INCOME FUND

ALL DATA IS AS OF MARCH 31, 2017 (UNAUDITED)

Asset Allocation

Stocks	1.6%
Financials	1.5%
Consumer Discretionary	0.1%
Consumer Staples	0.0%
Bonds	85.8%
Corporate Debt Securities	56.0%
Loans	15.7%
United States Government and Government Agency Obligations	9.3%
Other Government Securities	2.6%
Mortgage-Backed Securities	1.3%
Asset-Backed Securities	0.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	12.6%

Quality Weightings

Investment Grade	30.3%
AAA	0.2%
AA	9.9%
A	6.6%
BBB	13.6%
Non-Investment Grade	55.5%
BB	12.9%
B	26.7%
CCC	10.1%
Below CCC	0.1%
Non-rated	6.0%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities	14.2%

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.

Country Weightings

North America	64.2%
United States	58.9%
Other North America	5.3%
Europe	12.0%
Luxembourg	3.7%
Other Europe	8.3%
South America	3.9%
Pacific Basin	3.3%
Bahamas/Caribbean	2.3%
Other	1.4%
Middle East	0.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	12.6%

Lipper Rankings

Category: Lipper Multi-Sector Income Funds	Rank	Percentile
1 Year	161/326		50

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.

+ 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.

22 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Netherlands
Consumer Discretionary – 0.1%
Altice N.V., Class A (A)		11	$	241
Total Netherlands – 0.1%				241
United States
Financials – 1.5%
iShares iBoxx $ High Yield Corporate Bond ETF		78		6,807
Total United States – 1.5%				6,807
TOTAL COMMON STOCKS – 1.6%			$	7,048
(Cost: $6,782)
PREFERRED STOCKS
United States
Consumer Staples – 0.0%
Pinnacle Agriculture Enterprises LLC (A)(B)(C)		389		177
Total United States – 0.0%				177
TOTAL PREFERRED STOCKS – 0.0%			$	177
(Cost: $177)
ASSET-BACKED SECURITIES	Principal
United States – 0.9%
Adams Mill CLO Ltd., Series 2014-1A, Class D1 (3-Month U.S. LIBOR plus 350 bps)
4.523%, 7–15–26 (D)(E)	$	400		394
Anchorage Credit Funding Ltd., Series 2015-2A, Class D
7.300%, 1–25–31 (D)		400		398
Guggenheim 1828 CLO LLC, Series 2016-1A (3-Month U.S. LIBOR plus 700 bps)
7.679%, 4–15–28 (D)(E)		400		402
Marathon CLO Ltd. and Marathon CLO LLC, Series 2015-8A, Class C (3-Month U.S. LIBOR plus 405 bps)
5.074%, 7–18–27 (D)(E)		400		391
NRZ Excess Spread Collateralized Notes, Series 2016-PLS2
5.683%, 7–25–21 (D)		529		529
NZCG Funding Ltd., Series 2015-2A, Class D (3-Month U.S. LIBOR plus 630 bps)
7.337%, 4–27–27 (D)(E)		530		528
OZLM Ltd., Series 2015–12A (3-Month U.S. LIBOR plus 370 bps)
4.739%, 4–30–27 (D)(E)		400		399
Seven Sticks CLO Ltd., Series 2016-1A (3-Month U.S. LIBOR plus 760 bps)
8.454%, 7–15–28 (D)(E)		400		402

ASSET-BACKED SECURITIES (Continued)	Principal		Value
United States (Continued)
Sound Point CLO Ltd., Series 2016-2A, Class D (3-Month U.S. LIBOR plus 425 bps)
5.280%, 10–20–28 (D)(E)	$	100	$	100
TIAA Churchill Middle Market CLO I Ltd., Series 2016-1A, Class D (3-Month U.S. LIBOR plus 540 bps)
6.201%, 10–20–28 (D)(E)		250		249
				3,792
TOTAL ASSET-BACKED SECURITIES – 0.9%			$	3,792
(Cost: $3,715)
CORPORATE DEBT SECURITIES
Argentina
Energy – 0.3%
YPF Sociedad Anonima (3-Month U.S. LIBOR plus 750 bps)
8.539%, 8–15–18 (E)		1,412		1,465
Materials – 0.3%
Alto Parana S.A.
6.375%, 6–9–17 (D)		1,260		1,266
Total Argentina – 0.6%				2,731
Australia
Financials – 0.2%
Westpac Banking Corp.
4.625%, 6–1–18		660		681
Total Australia – 0.2%				681
Austria
Consumer Staples – 0.1%
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.)
7.750%, 10–28–20 (D)		600		629
Materials – 0.5%
Bahia Sul Holdings GmbH
5.750%, 7–14–26 (D)		2,000		2,037
Total Austria – 0.6%				2,666
Bahrain
Financials – 0.2%
HDFC Bank Ltd.
3.000%, 3–6–18		750		756
Total Bahrain – 0.2%				756
Barbados
Consumer Discretionary – 0.0%
Columbus International, Inc.
7.375%, 3–30–21 (D)		200		214
Total Barbados – 0.0%				214

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Bermuda
Financials – 0.0%
Ooredoo International Finance Ltd.
3.750%, 6–22–26 (D)	$	200	$	199
Total Bermuda – 0.0%				199
Brazil
Consumer Staples – 0.2%
BRF – Brasil Foods S.A.
3.950%, 5–22–23 (D)		1,000		939
Financials – 0.0%
Cielo S.A. and Cielo USA, Inc.
3.750%, 11–16–22 (D)		200		193
Materials – 0.5%
CSN Islands XII Corp.
7.000%, 9–23–49		52		36
CSN Resources S.A.
6.500%, 7–21–20		120		100
Suzano Trading Ltd.
5.875%, 1–23–21 (D)		1,000		1,065
Vale Overseas Ltd.:
4.625%, 9–15–20		700		726
6.250%, 8–10–26		125		136
				2,063
Total Brazil – 0.7%				3,195
British Virgin Islands
Financials – 0.1%
King Power Capital Ltd.
5.625%, 11–3–24		225		249
Total British Virgin Islands – 0.1%				249
Canada
Consumer Discretionary – 0.1%
Gateway Casinos & Entertainment Ltd.
8.250%, 3–1–24 (D)		422		427
Energy – 0.6%
EnCana Corp.
6.500%, 8–15–34		197		221
Seven Generations Energy Ltd.:
8.250%, 5–15–20 (D)		637		665
6.750%, 5–1–23 (D)		590		617
TransCanada PipeLines Ltd.
3.800%, 10–1–20		1,000		1,047
Trinidad Drilling Ltd.
6.625%, 2–15–25 (D)		10		10
				2,560
Financials – 0.3%
Bank of Montreal
1.800%, 7–31–18		500		501
Royal Bank of Canada
2.500%, 1–19–21		750		755
				1,256

2017 SEMIANNUAL REPORT 23

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care – 0.3%
Concordia Healthcare Corp.:
9.500%, 10–21–22 (D)	$	2,169	$	477
7.000%, 4–15–23 (D)		135		26
VPII Escrow Corp.
7.500%, 7–15–21 (D)		768		674
VRX Escrow Corp.
5.375%, 3–15–20 (D)		350		313
				1,490
Industrials – 0.3%
GFL Environmental, Inc.:
7.875%, 4–1–20 (D)		800		830
9.875%, 2–1–21 (D)		290		314
Ritchie Bros. Auctioneers, Inc.
5.375%, 1–15–25 (D)		171		175
				1,319
Information Technology – 0.7%
Kronos Acquisition Holdings, Inc.
9.000%, 8–15–23 (D)		2,244		2,283
OpenText Corp.
5.875%, 6–1–26 (D)		440		461
				2,744
Materials – 0.0%
HudBay Minerals, Inc.:
7.250%, 1–15–23 (D)		68		72
7.625%, 1–15–25 (D)		102		111
				183
Total Canada – 2.3%				9,979
Cayman Islands
Energy – 0.0%
Noble Holding International Ltd.
7.750%, 1–15–24		172		165
Financials – 0.3%
Banco do Brasil S.A.
6.000%, 1–22–20 (D)		1,000		1,063
Preferred Term Securities XXIV Ltd., Series A-2 (3-Month U.S. LIBOR plus 38 bps)
1.511%, 3–22–37 (D)(E)		296		188
Preferred Term Securities XXV Ltd., Series A-2 (3-Month U.S. LIBOR plus 35 bps)
1.481%, 6–22–37 (D)(E)		148		92
				1,343
Industrials – 0.3%
Guanay Finance Ltd.
6.000%, 12–15–20		1,399		1,436
Materials – 0.2%
Fibria Overseas Finance Ltd.
5.250%, 5–12–24		800		826
Real Estate – 0.0%
Link Finance (Cayman) 2009 Ltd.
2.875%, 7–21–26		200		190

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Telecommunication Services – 1.2%
CK Hutchison International (16) Ltd.
1.875%, 10–3–21 (D)	$	2,000	$	1,927
Hutchison Whampoa International (12) (II) Ltd.
2.000%, 11–8–17 (D)		500		500
Sable International Finance Ltd.
6.875%, 8–1–22 (D)		2,120		2,242
				4,669
Total Cayman Islands – 2.0%				8,629
Chile
Materials – 0.4%
Inversiones CMPC S.A. (GTD by Empresas CMPC S.A.):
4.750%, 1–19–18 (D)		1,000		1,012
4.750%, 1–19–18		600		608
				1,620
Total Chile – 0.4%				1,620
China
Financials – 0.0%
China Construction Bank Corp.
3.875%, 5–13–25		200		203
Information Technology – 0.5%
Alibaba Group Holding Ltd.:
1.625%, 11–28–17		250		250
2.500%, 11–28–19		1,500		1,507
3.600%, 11–28–24		200		201
				1,958
Real Estate – 0.0%
Country Garden Holdings Co. Ltd.
4.750%, 9–28–23		200		196
Total China – 0.5%				2,357
Columbia
Financials – 0.3%
Banco de Bogota S.A.
5.375%, 2–19–23 (D)		1,300		1,351
Utilities – 0.2%
Empresas Publicas de Medellin E.S.P.
7.625%, 7–29–19 (D)		697		781
Total Columbia – 0.5%				2,132
France
Consumer Discretionary – 0.5%
Numericable – SFR S.A.
7.375%, 5–1–26 (D)		2,029		2,089
Consumer Staples – 0.6%
Danone S.A.
3.000%, 6–15–22 (D)		900		903

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Staples (Continued)
Pernod Ricard S.A.
4.450%, 1–15–22 (D)	$	1,500	$	1,597
				2,500
Health Care – 0.0%
HomeVi SAS (3-Month EURIBOR plus 425 bps)
4.250%, 11–15–21 (D)(E)(F)	EUR	100		108
Telecommunication Services – 0.3%
Orange S.A.
1.625%, 11–3–19	$	1,500		1,479
Total France – 1.4%				6,176
Hong Kong
Financials – 0.0%
China Shenua Overseas Capital Co. Ltd. (GTD by Shenhua Hong Kong Ltd.)
3.875%, 1–20–25		200		203
Total Hong Kong – 0.0%				203
India
Financials – 0.1%
Indian Railway Finance Corp.
3.417%, 10–10–17		319		321
Materials – 0.4%
Vedanta Resources plc
6.375%, 7–30–22 (D)		1,800		1,812
Telecommunication Services – 0.0%
Bharti Airtel Ltd.
4.375%, 6–10–25		200		200
Total India – 0.5%				2,333
Indonesia
Energy – 0.0%
PT Perusahaan Gas Negara Tbk
5.125%, 5–16–24		200		212
Financials – 0.3%
Bank Rakyat Indonesia
2.950%, 3–28–18		1,000		999
Total Indonesia – 0.3%				1,211
Ireland
Industrials – 0.1%
Park Aerospace Holdings Ltd.
5.250%, 8–15–22 (D)		283		294
Total Ireland – 0.1%				294

24 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Israel
Energy – 0.0%
Delek & Avner Tamar Bond Ltd.
5.082%, 12–30–23 (D)	$	250	$	262
Utilities – 0.1%
Israel Electric Corp. Ltd.
6.875%, 6–21–23 (D)		200		232
Total Israel – 0.1%				494
Italy
Consumer Discretionary – 0.1%
Gamenet Group S.p.A.
6.000%, 8–15–21 (D)(F)	EUR	200		222
Consumer Staples – 0.1%
N&W Global Vending S.p.A.
7.000%, 10–15–23 (D)(F)		500		557
Materials – 0.0%
Guala Closures S.p.A. (3-Month EURIBOR plus 475 bps)
4.445%, 11–15–21 (D)(E)(F)		100		109
Total Italy – 0.2%				888
Jamaica
Telecommunication Services – 0.2%
Digicel Group Ltd.:
8.250%, 9–30–20 (D)	$	717		615
6.000%, 4–15–21 (D)		242		220
				835
Total Jamaica – 0.2%				835
Japan
Consumer Staples – 0.3%
Suntory Holdings Ltd.
2.550%, 9–29–19 (D)		1,325		1,334
Financials – 0.2%
Mizuho Bank Ltd.
2.450%, 4–16–19 (D)		750		754
Total Japan – 0.5%				2,088
Jersey
Financials – 0.1%
Mercury BondCo plc (8.250% Cash or 9.000% PIK)
8.250%, 5–30–21 (F)(G)	EUR	218		239
Total Jersey – 0.1%				239
Luxembourg
Consumer Discretionary – 1.8%
Altice Financing S.A.:
6.500%, 1–15–22 (D)	$	100		105
6.625%, 2–15–23 (D)		1,213		1,262

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Discretionary (Continued)
7.500%, 5–15–26 (D)	$	672	$	714
Altice S.A.:
7.250%, 5–15–22 (D)(F)	EUR	250		282
7.750%, 5–15–22 (D)	$	1,525		1,618
6.250%, 2–15–25 (D)(F)	EUR	250		284
7.625%, 2–15–25 (D)	$	800		846
Intelsat Jackson Holdings S.A.:
7.250%, 4–1–19		324		309
9.500%, 9–30–22 (D)		814		957
8.000%, 2–15–24 (D)		554		587
Nielsen Co. (Luxembourg) S.a.r.l. (The):
5.500%, 10–1–21 (D)		700		727
5.000%, 2–1–25 (D)		191		190
				7,881
Consumer Staples – 0.2%
Minerva Luxembourg S.A.
6.500%, 9–20–26 (D)		775		757
Energy – 0.1%
Offshore Drilling Holding S.A.
8.375%, 9–20–20 (D)(H)		600		258
Financials – 0.1%
Camelot Finance S.A.
7.875%, 10–15–24 (D)		200		212
Cosan Luxembourg S.A.
7.000%, 1–20–27 (D)		200		207
Gaz Capital S.A.
6.510%, 3–7–22		200		222
				641
Industrials – 0.3%
Ingersoll-Rand Luxembourg Finance S.A.
2.625%, 5–1–20		1,500		1,514
Information Technology – 0.8%
BC Luxco 1 S.A.
7.375%, 1–29–20 (D)		3,200		3,288
Materials – 0.0%
ARD Finance S.A.
7.125%, 9–15–23 (D)		200		206
Total Luxembourg – 3.3%				14,545
Macau
Consumer Discretionary – 0.2%
Wynn Macau Ltd.
5.250%, 10–15–21 (D)		1,000		1,020
Total Macau – 0.2%				1,020
Malaysia
Financials – 0.0%
Malayan Banking Berhad
3.905%, 10–29–26		200		201
Total Malaysia – 0.0%				201

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Mexico
Consumer Discretionary – 0.3%
Grupo Televisa S.A.B. de C.V.
6.000%, 5–15–18	$	1,250	$	1,304
Consumer Staples – 0.8%
Coca-Cola FEMSA S.A.B. de C.V.
2.375%, 11–26–18		750		754
Grupo Bimbo S.A.B. de C.V.:
4.875%, 6–30–20 (D)		350		372
4.500%, 1–25–22 (D)		1,250		1,313
Kimberly-Clark de Mexico
3.800%, 4–8–24 (D)		1,000		994
				3,433
Energy – 0.5%
Petroleos Mexicanos
5.500%, 2–4–19		2,000		2,101
Financials – 0.7%
Banco Santander S.A.
4.125%, 11–9–22 (D)		1,750		1,768
Nacional Financiera SNC
3.375%, 11–5–20 (D)		750		760
Unifin Financiera S.A.B. de C.V. SOFOM E.N.R.
7.250%, 9–27–23 (D)		450		455
				2,983
Real Estate – 0.0%
Fibra Uno Administracion S.A. de CV
5.250%, 1–30–26 (D)		200		201
Telecommunication Services – 0.2%
Telefonos de Mexico S.A.B de C.V. (GTD by America Movil S.A.B. de C.V.)
5.500%, 11–15–19		1,000		1,080
Total Mexico – 2.5%				11,102
Netherlands
Consumer Discretionary – 1.1%
Myriad International Holdings B.V.
6.375%, 7–28–17 (D)		1,800		1,819
VTR Finance B.V.
6.875%, 1–15–24 (D)		2,850		2,964
Ziggo Secured Finance B.V.
5.500%, 1–15–27 (D)		220		220
				5,003
Consumer Staples – 0.5%
MARB BondCo plc (GTD by Marfrig Global Foods S.A., Marfrig Overseas Ltd. and Marfrig Holdings (Europe) B.V.)
7.000%, 3–15–24 (D)		1,200		1,191
Marfrig Holdings (Europe) B.V.
8.000%, 6–8–23 (D)		650		679
				1,870

2017 SEMIANNUAL REPORT 25

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Energy – 0.3%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.):
8.375%, 5–23–21	$	1,155	$	1,307
6.125%, 1–17–22		37		39
7.375%, 1–17–27		92		97
				1,443
Financials – 0.6%
ENEL Finance International N.V.
5.125%, 10–7–19 (D)		1,445		1,541
Rabobank Nederland
2.500%, 1–19–21		750		751
				2,292
Health Care – 0.0%
JLL/Delta Dutch Newco B.V.
7.500%, 2–1–22 (D)		100		106
Industrials – 0.1%
Alcoa Nederland Holding B.V.:
6.750%, 9–30–24 (D)		200		215
7.000%, 9–30–26 (D)		200		217
				432
Materials – 0.6%
Constellium N.V.:
8.000%, 1–15–23 (D)		1,060		1,086
5.750%, 5–15–24 (D)		1,000		925
6.625%, 3–1–25 (D)		831		802
				2,813
Utilities – 0.1%
Majapahit Holding B.V.
7.750%, 1–20–20 (D)		400		451
Total Netherlands – 3.3%				14,410
Norway
Financials – 0.1%
DNB Bank ASA
3.200%, 4–3–17 (D)		500		500
Total Norway – 0.1%				500
Panama
Financials – 0.6%
Banco de Credito del Peru
2.250%, 10–25–19 (D)		500		496
Banco Latinoamericano de Comercio Exterior S.A.
3.750%, 4–4–17 (D)		2,250		2,250
				2,746
Total Panama – 0.6%				2,746
Peru
Energy – 0.0%
Transportadora de Gas del Peru S.A.
4.250%, 4–30–28 (D)		200		202

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials – 0.2%
BBVA Banco Continental S.A.
3.250%, 4–8–18 (D)	$	500	$	506
Total Peru – 0.2%				708
Qatar
Energy – 0.2%
Ras Laffan Liquefied Natural Gas Co. Ltd. II
5.298%, 9–30–20 (D)		861		904
Total Qatar – 0.2%				904
Singapore
Financials – 0.2%
DBS Bank Ltd.
3.625%, 9–21–22 (D)		750		756
Telecommunication Services – 0.3%
TBG Global Pte. Ltd.
4.625%, 4–3–18 (D)		1,500		1,510
Total Singapore – 0.5%				2,266
South Korea
Financials – 0.4%
Kookmin Bank
2.125%, 10–21–20 (D)		750		740
Woori Bank
2.625%, 7–20–21 (D)		750		743
				1,483
Telecommunication Services – 0.1%
SK Broadband Co. Ltd.
2.875%, 10–29–18		500		504
Total South Korea – 0.5%				1,987
Spain
Utilities – 0.2%
Abengoa Yield plc
7.000%, 11–15–19 (D)		679		713
Total Spain – 0.2%				713
Turkey
Financials – 0.0%
Turkiye Is Bankasi A.S.
5.500%, 4–21–22		200		197
Total Turkey – 0.0%				197
United Arab Emirates
Financials – 0.2%
ICICI Bank Ltd.
4.700%, 2–21–18 (D)		750		767

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Utilities – 0.1%
Abu Dhabi National Energy Co.
2.500%, 1–12–18 (D)	$	500	$	501
Total United Arab Emirates – 0.3%				1,268
United Kingdom
Consumer Staples – 0.5%
BAT International Finance plc
1.850%, 6–15–18 (D)		750		750
Iceland Bondco plc
6.750%, 7–15–24 (F)	GBP	100		134
Imperial Tobacco Finance plc
3.750%, 7–21–22 (D)	$	1,500		1,541
				2,425
Energy – 0.3%
KCA Deutag UK Finance plc:
7.250%, 5–15–21 (D)		1,000		935
9.875%, 4–1–22 (D)		440		451
				1,386
Financials – 0.9%
Arrow Global Finance plc
5.125%, 9–15–24 (D)(F)	GBP	101		131
Barclays plc
8.250%, 12–29–49	$	1,300		1,366
Industrial and Commercial Bank of China Ltd.
2.250%, 12–21–18		350		350
State Bank of India
3.250%, 4–18–18 (D)		1,750		1,770
				3,617
Real Estate – 0.1%
Keystone Financing plc
9.500%, 10–15–19 (F)	GBP	212		279
Telecommunication Services – 0.0%
Virgin Media Secured Finance plc
5.500%, 8–15–26 (D)	$	46		47
Total United Kingdom – 1.8%				7,754
United States
Consumer Discretionary – 8.4%
Acosta, Inc.
7.750%, 10–1–22 (D)		400		340
Allison Transmission, Inc.
5.000%, 10–1–24 (D)		98		99
Altice U.S. Finance I Corp.
5.500%, 5–15–26 (D)		660		678
Altice U.S. Finance II Corp.
7.750%, 7–15–25 (D)		853		943
AMC Entertainment Holdings, Inc.:
5.875%, 11–15–26 (D)		104		105
6.125%, 5–15–27 (D)		145		146
AMC Entertainment, Inc.
5.750%, 6–15–25		494		506
Block Communications, Inc.
6.875%, 2–15–25 (D)		114		121

26 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Discretionary (Continued)
Bon-Ton Stores, Inc. (The)
8.000%, 6–15–21	$	782	$	313
Cablevision Systems Corp.:
7.750%, 4–15–18		125		130
5.875%, 9–15–22		505		509
Carlson Travel, Inc.
6.750%, 12–15–23 (D)		495		515
CCO Holdings LLC and CCO Holdings Capital Corp.
5.500%, 5–1–26 (D)		110		114
Cinemark USA, Inc.:
5.125%, 12–15–22		153		156
4.875%, 6–1–23		500		505
Clear Channel Outdoor Holdings, Inc.
6.500%, 11–15–22		1,110		1,141
Clear Channel Worldwide Holdings, Inc., Series A
7.625%, 3–15–20		227		225
Clear Channel Worldwide Holdings, Inc., Series B
7.625%, 3–15–20		1,925		1,942
Cumulus Media, Inc.
7.750%, 5–1–19		200		69
DISH DBS Corp.:
6.750%, 6–1–21		450		486
5.875%, 7–15–22		1,000		1,051
5.000%, 3–15–23		1,000		1,005
5.875%, 11–15–24		135		142
7.750%, 7–1–26		174		202
EMI Music Publishing Group North America Holdings
7.625%, 6–15–24 (D)		244		266
Goodyear Tire & Rubber Co. (The)
4.875%, 3–15–27		753		753
Gray Television, Inc.:
5.125%, 10–15–24 (D)		336		332
5.875%, 7–15–26 (D)		188		191
Group 1 Automotive, Inc.
5.000%, 6–1–22		200		202
Hanesbrands, Inc.
4.875%, 5–15–26 (D)		250		246
Hot Topic, Inc.
9.250%, 6–15–21 (D)		700		679
HT Intermediate Holdings Corp. (12.000% Cash or 12.750% PIK)
12.000%, 5–15–19 (D)(G)		545		542
Jo-Ann Stores Holdings, Inc. (9.750% Cash or 10.500% PIK)
9.750%, 10–15–19 (D)(G)		1,635		1,582
Jo-Ann Stores, Inc.
8.125%, 3–15–19 (D)		418		417
KFC Holding Co., Pizza Hut Holdings LLC and Taco Bell of America LLC
5.250%, 6–1–26 (D)		250		254
Lamar Media Corp.
5.375%, 1–15–24		250		258
Laureate Education, Inc.:
10.000%, 9–1–19		264		279
10.000%, 9–1–19 (D)(H)		4,247		4,416
MDC Partners, Inc.
6.500%, 5–1–24 (D)		427		407

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Discretionary (Continued)
MGM Resorts International
8.625%, 2–1–19	$	573	$	629
Neptune Finco Corp.:
10.125%, 1–15–23 (D)		828		960
10.875%, 10–15–25 (D)		848		1,020
6.625%, 10–15–25 (D)		225		245
Nexstar Escrow Corp.
5.625%, 8–1–24 (D)		450		457
Nielsen Finance LLC and Nielsen Finance Co.
5.000%, 4–15–22 (D)		700		716
Penske Automotive Group, Inc.
5.500%, 5–15–26		153		150
Radio One, Inc. (GTD by TV One LLC)
7.375%, 4–15–22 (D)		516		539
Restoration Hardware Holdings, Inc., Convertible:
0.000%, 6–15–19 (D)(I)		468		420
0.000%, 7–15–20 (D)(I)		435		367
Scientific Games International, Inc. (GTD by Scientific Games Corp.)
7.000%, 1–1–22 (D)		815		871
Sinclair Television Group, Inc.:
5.875%, 3–15–26 (D)		275		282
5.125%, 2–15–27 (D)		200		193
Sirius XM Radio, Inc.:
4.625%, 5–15–23 (D)		1,250		1,278
6.000%, 7–15–24 (D)		1,450		1,555
Sonic Automotive, Inc.
5.000%, 5–15–23		590		573
Univision Communications, Inc.
5.125%, 2–15–25 (D)		250		246
WaveDivision Escrow LLC and WaveDivision Escrow Corp.
8.125%, 9–1–20 (D)		1,155		1,190
WideOpenWest Finance LLC and WideOpenWest Capital Corp.
10.250%, 7–15–19		230		240
WMG Acquisition Corp.
6.750%, 4–15–22 (D)		975		1,026
				35,224
Consumer Staples – 2.1%
AdvancePierre Foods Holdings, Inc.
5.500%, 12–15–24 (D)		561		567
Anheuser-Busch InBev S.A./N.V.
2.650%, 2–1–21		1,500		1,511
Bunge Ltd. Finance Corp.
3.500%, 11–24–20		1,355		1,389
JBS USA LLC and JBS USA Finance, Inc.:
5.875%, 7–15–24 (D)		473		487
5.750%, 6–15–25 (D)		558		564
Lamb Weston Holdings, Inc.
4.875%, 11–1–26 (D)		490		500
Performance Food Group, Inc.
5.500%, 6–1–24 (D)		211		216
Philip Morris International, Inc.
1.375%, 2–25–19		1,000		994
Post Holdings, Inc.:
7.750%, 3–15–24 (D)		470		518
5.500%, 3–1–25 (D)		146		146

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Discretionary (Continued)
8.000%, 7–15–25 (D)	$	240	$	269
5.000%, 8–15–26 (D)		129		124
5.750%, 3–1–27 (D)		146		146
Prestige Brands, Inc.
5.375%, 12–15–21 (D)		450		460
Revlon Consumer Products Corp.
5.750%, 2–15–21		102		102
Revlon Escrow Corp.
6.250%, 8–1–24		64		64
Simmons Foods, Inc.
7.875%, 10–1–21 (D)		985		1,034
U.S. Foods, Inc.
5.875%, 6–15–24 (D)		351		364
				9,455
Energy – 1.9%
Access Midstream Partners L.P.
4.875%, 5–15–23		144		148
Antero Resources Corp.
5.125%, 12–1–22		215		218
Calfrac Holdings L.P. (GTD by Calfrac Well Services Ltd.)
7.500%, 12–1–20 (D)		343		312
California Resources Corp.
8.000%, 12–15–22 (D)		221		180
Callon Petroleum Co. (GTD by Callon Petroleum Operating Co.)
6.125%, 10–1–24 (D)		300		312
Diamondback Energy, Inc.
4.750%, 11–1–24 (D)		510		513
Endeavor Energy Resources L.P.:
7.000%, 8–15–21 (D)		2,085		2,179
8.125%, 9–15–23 (D)		500		531
Gulfport Energy Corp.:
6.625%, 5–1–23		200		202
6.000%, 10–15–24 (D)		150		146
Laredo Petroleum, Inc.
7.375%, 5–1–22		1,435		1,489
Newfield Exploration Co.
5.625%, 7–1–24		150		158
Northern Tier Energy LLC and Northern Tier Finance Corp. (GTD by Northern Tier Energy L.P.)
7.125%, 11–15–20		234		243
ONEOK, Inc.
7.500%, 9–1–23		150		175
PBF Holding Co. LLC and PBF Finance Corp.
8.250%, 2–15–20		725		740
PDC Energy, Inc.
6.125%, 9–15–24 (D)		55		56
Reliance Holding USA, Inc.
4.500%, 10–19–20 (D)		500		530
Rowan Cos., Inc. (GTD by Rowan plc)
7.375%, 6–15–25		102		103
SESI LLC
7.125%, 12–15–21		196		198
Williams Co., Inc. (The)
4.550%, 6–24–24		430		434
				8,867

2017 SEMIANNUAL REPORT 27

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials – 5.0%
Australia and New Zealand Banking Group Ltd.:
2.000%, 11–16–18	$	500	$	502
2.250%, 6–13–19		1,500		1,509
Balboa Merger Sub, Inc.
11.375%, 12–1–21 (D)		1,310		1,451
Bank of America Corp.
6.875%, 11–15–18		1,700		1,830
CEMEX Finance LLC
9.375%, 10–12–22 (D)		2,500		2,701
CURO Financial Technologies Corp.
12.000%, 3–1–22 (D)		202		208
Daimler Finance North America LLC
1.375%, 8–1–17 (D)		500		500
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.:
3.480%, 6–1–19 (D)		500		513
5.875%, 6–15–21 (D)		80		84
5.450%, 6–15–23 (D)		54		58
7.125%, 6–15–24 (D)		80		88
6.020%, 6–15–26 (D)		108		118
E*TRADE Financial Corp.
5.875%, 12–29–49		93		96
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.)
2.400%, 5–9–19		1,000		1,003
GTT Escrow Corp.
7.875%, 12–31–24 (D)		263		273
HSBC USA, Inc.:
1.625%, 1–16–18		750		750
2.750%, 8–7–20		1,000		1,010
Hub International Ltd.
7.875%, 10–1–21 (D)		500		521
Hyundai Capital America
2.000%, 3–19–18 (D)		500		500
KeyBank N.A.
2.500%, 12–15–19		1,000		1,011
National Australia Bank Ltd.
2.000%, 1–14–19		1,500		1,503
New Cotai LLC and New Cotai Capital Corp. (10.625% Cash or 10.625% PIK)
10.625%, 5–1–19 (D)(G)		532		442
Patriot Merger Corp.
9.000%, 7–15–21 (D)		1,380		1,458
Provident Funding Associates L.P. and PFG Finance Corp.
6.750%, 6–15–21 (D)		950		969
Quicken Loans, Inc.
5.750%, 5–1–25 (D)		500		491
TMX Finance LLC and TitleMax Finance Corp.
8.500%, 9–15–18 (D)		1,450		1,334
Wells Fargo & Co.
7.980%, 3–29–49		1,350		1,406
				22,329
Health Care – 1.7%
Centene Corp.
4.750%, 5–15–22		250		257

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care (Continued)
DaVita HealthCare Partners, Inc.
5.125%, 7–15–24	$	100	$	101
Fresenius U.S. Finance II, Inc.
4.250%, 2–1–21 (D)		600		623
Greatbatch Ltd.
9.125%, 11–1–23 (D)		531		560
HCA, Inc. (GTD by HCA Holdings, Inc.)
5.250%, 6–15–26		115		120
IMS Health, Inc.
5.000%, 10–15–26 (D)		200		201
Jaguar Holding Co. II and Pharmaceutical Product Development LLC
6.375%, 8–1–23 (D)		500		522
Kinetic Concepts, Inc. and KCI USA, Inc.,
12.500%, 11–1–21 (D)		112		124
MPH Acquisition Holdings LLC
7.125%, 6–1–24 (D)		482		518
Surgery Center Holdings, Inc.
8.875%, 4–15–21 (D)		757		801
Tenet Healthcare Corp.:
6.750%, 2–1–20		1,175		1,192
7.500%, 1–1–22 (D)		59		64
8.125%, 4–1–22		1,000		1,043
Universal Hospital Services, Inc.
7.625%, 8–15–20		1,062		1,056
				7,182
Industrials – 2.8%
AECOM
5.125%, 3–15–27 (D)		660		662
Ahern Rentals, Inc.
7.375%, 5–15–23 (D)		139		120
BAE Systems Holdings, Inc.:
6.375%, 6–1–19 (D)		750		816
2.850%, 12–15–20 (D)		344		348
Constellis Holdings LLC and Constellis Finance Corp.
9.750%, 5–15–20 (D)		442		473
Florida East Coast Holdings Corp. and Florida East Coast Industries LLC
6.750%, 5–1–19 (D)		740		762
HD Supply, Inc.
5.750%, 4–15–24 (D)		259		272
KLX, Inc.
5.875%, 12–1–22 (D)		740		763
Lockheed Martin Corp.
2.500%, 11–23–20		1,695		1,707
Masco Corp.
4.375%, 4–1–26		133		138
Park Aerospace Holdings Ltd.
5.500%, 2–15–24 (D)		377		392
Ply Gem Industries, Inc.
6.500%, 2–1–22		500		524
Prime Security Services Borrower LLC
9.250%, 5–15–23 (D)		1,438		1,576
Standard Industries, Inc.
5.500%, 2–15–23 (D)		189		193
Summit Materials LLC and Summit Materials Finance Corp.:
8.500%, 4–15–22		134		148
6.125%, 7–15–23		172		175

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Industrials (Continued)
TransDigm, Inc. (GTD by TransDigm Group, Inc.):
6.000%, 7–15–22	$	450	$	456
6.500%, 7–15–24		822		832
6.375%, 6–15–26		287		287
United Rentals (North America), Inc. (GTD by United Rentals, Inc.)
5.875%, 9–15–26		151		157
WESCO Distribution, Inc. (GTD by WESCO International, Inc.)
5.375%, 6–15–24		114		117
XPO Logistics, Inc.:
6.500%, 6–15–22 (D)		329		345
6.125%, 9–1–23 (D)		91		95
				11,358
Information Technology – 2.7%
Alliance Data Systems Corp.:
6.375%, 4–1–20 (D)		235		239
5.875%, 11–1–21 (D)		207		214
5.375%, 8–1–22 (D)		1,230		1,239
Cardtronics, Inc. and Cardtronics USA, Inc.
5.500%, 5–1–25 (D)		149		151
CDW LLC and CDW Finance Corp. (GTD by CDW Corp.)
5.000%, 9–1–25		80		81
Ensemble S Merger Sub, Inc.
9.000%, 9–30–23 (D)		170		179
Infor (U.S.), Inc.
5.750%, 5–15–22 (F)	EUR	100		109
Italics Merger Sub, Inc.
7.125%, 7–15–23 (D)	$	2,231		2,170
JDA Escrow LLC and JDA Bond Finance, Inc.
7.375%, 10–15–24 (D)		189		197
L-3 Communications Corp.
5.200%, 10–15–19		750		804
Micron Technology, Inc.:
5.875%, 2–15–22		1,090		1,139
7.500%, 9–15–23 (D)		550		614
5.500%, 2–1–25		500		519
NCR Escrow Corp.:
5.875%, 12–15–21		575		599
6.375%, 12–15–23		595		627
Orbcomm, Inc.
8.000%, 4–1–24		436		436
Riverbed Technolgy, Inc. and Project Homestake Merger Corp.
8.875%, 3–1–23 (D)		548		559
West Corp.
5.375%, 7–15–22 (D)		1,037		1,018
Western Digital Corp.:
7.375%, 4–1–23 (D)		656		719
10.500%, 4–1–24		539		635
				12,248
Materials – 1.6%
BakerCorp International, Inc.
8.250%, 6–1–19		1,440		1,346
Coveris Holdings S.A.
7.875%, 11–1–19 (D)		300		296

28 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Materials (Continued)
Eagle Materials, Inc.
4.500%, 8–1–26	$	52	$	52
Flex Acquisition Co., Inc.
6.875%, 1–15–25 (D)		130		133
Hillman Group, Inc. (The)
6.375%, 7–15–22 (D)		795		758
Kaiser Aluminum Corp.
5.875%, 5–15–24		141		147
Kraton Polymers LLC and Kraton Polymers Capital Corp.
7.000%, 4–15–25 (D)		210		212
Novelis Corp. (GTD by Novelis, Inc.):
6.250%, 8–15–24 (D)		197		205
5.875%, 9–30–26 (D)		137		140
Pinnacle Operating Corp.
9.000%, 5–15–23 (D)		560		558
PSPC Escrow Corp.
6.500%, 2–1–22 (D)		343		356
PSPC Escrow II Corp.
10.375%, 5–1–21 (D)		1,352		1,504
Reynolds Group Issuer, Inc., Reynolds Group Issuer LLC and Reynolds Group Issuer (Luxembourg) S.A.
5.125%, 7–15–23 (D)		536		550
Signode Industrial Group
6.375%, 5–1–22 (D)		625		641
TPC Group, Inc.
8.750%, 12–15–20 (D)		130		118
U.S. Steel Corp.
8.375%, 7–1–21 (D)		72		80
Valvoline Finco Two LLC
5.500%, 7–15–24 (D)		150		158
				7,254
Real Estate – 0.4%
Aircastle Ltd.:
5.500%, 2–15–22		713		765
5.000%, 4–1–23		293		308
Hub Holdings LLC and Hub Holdings Finance, Inc. (8.125% Cash or 8.875% PIK)
8.125%, 7–15–19 (D)(G)		510		510
iStar Financial, Inc., Convertible:
5.000%, 7–1–19		210		212
6.500%, 7–1–21		125		128
MPT Operating Partnership L.P. and MPT Finance Corp. (GTD by Medical Properties Trust, Inc.)
5.250%, 8–1–26		63		62
				1,985
Telecommunication Services – 3.3%
American Tower Corp.
3.400%, 2–15–19		600		614
AT&T, Inc.
2.300%, 3–11–19		1,500		1,508
CommScope Technologies LLC (GTD by CommScope, Inc.)
5.000%, 3–15–27 (D)		430		429
Consolidated Communications Finance II Co.
6.500%, 10–1–22		372		357

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Telecommunication Services (Continued)
Frontier Communications Corp.:
8.875%, 9–15–20	$	750	$	791
9.250%, 7–1–21		300		303
6.250%, 9–15–21		500		465
10.500%, 9–15–22		1,231		1,246
11.000%, 9–15–25		492		477
GCI, Inc.
6.875%, 4–15–25		575		602
Level 3 Communications, Inc.
5.750%, 12–1–22		500		518
Level 3 Escrow II, Inc.
5.375%, 8–15–22		709		733
Sprint Corp.:
7.250%, 9–15–21		1,187		1,282
7.875%, 9–15–23		786		870
7.125%, 6–15–24		500		534
Sprint Nextel Corp.:
8.375%, 8–15–17		254		260
9.000%, 11–15–18 (D)		152		165
7.000%, 8–15–20		242		260
11.500%, 11–15–21		126		158
T-Mobile USA, Inc.:
6.464%, 4–28–19		300		301
6.731%, 4–28–22		250		259
6.000%, 4–15–24		264		281
6.500%, 1–15–26		168		184
Verizon Communications, Inc.
6.100%, 4–15–18		1,000		1,045
Zayo Group LLC and Zayo Capital, Inc.:
6.000%, 4–1–23		86		91
5.750%, 1–15–27 (D)		349		368
				14,101
Utilities – 0.9%
Great Plains Energy, Inc.
4.850%, 6–1–21		1,500		1,600
Pattern Energy Group, Inc., Convertible
4.000%, 7–15–20		468		464
PSEG Power LLC (GTD by Nuclear, Fossil and ER&T)
2.450%, 11–15–18		1,250		1,258
Sempra Energy
2.850%, 11–15–20		500		506
				3,828
Total United States – 30.8%				133,831
TOTAL CORPORATE DEBT SECURITIES – 56.0%			$	244,321
(Cost: $239,321)
MORTGAGE-BACKED SECURITIES
United States – 1.3%
Avant Loans Funding Trust, Series 2015-A, Class C
7.750%, 8–16–21 (D)		406		415
Avant, Inc., Series 2016, Class B
7.800%, 9–15–20 (D)		400		415

MORTGAGE-BACKED SECURITIES (Continued)	Principal		Value
United States (Continued)
Great Wolf Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-WFMZ, Class M (1-Month U.S. LIBOR plus 698.8 bps)
7.758%, 5–15–32 (D)(E)	$	390	$	400
Madison Park Funding Ltd., Series 2012-10A, Class ER (3-Month U.S. LIBOR plus 762 bps)
8.650%, 1–20–29 (D)(E)		675		683
MarketPlace Loan Trust, Series 2015-AV2, Class C
7.500%, 10–15–21 (D)		279		284
Northwoods Capital XIV Ltd. and Northwoods Capital XIV LLC, Series 2014-14A, Class D (3-Month U.S. LIBOR plus 395 bps)
4.852%, 11–12–25 (D)(E)		800		798
PNMAC GMSR Issuer Trust, Series 2017-GT1 (1-Month U.S. LIBOR plus 475 bps)
5.732%, 2–25–50 (D)(E)		1,000		1,002
Waldorf Astoria Boca Raton Trust, Commercial Mortgage Pass-Through Certificates, Series 2016-BOCA, Class F (1-Month U.S. LIBOR plus 550 bps)
6.270%, 6–15–29 (D)(E)		1,500		1,504
				5,501
TOTAL MORTGAGE-BACKED SECURITIES – 1.3%			$	5,501
(Cost: $5,439)
OTHER GOVERNMENT SECURITIES (J)
Argentina – 0.4%
Aeropuertos Argentina 2000 S.A.
6.875%, 2–1–27 (D)		625		645
Republic of Argentina
5.625%, 1–26–22 (D)		1,000		1,024
				1,669
Brazil – 0.5%
Federative Republic of Brazil
4.875%, 1–22–21		2,200		2,319
Columbia – 0.3%
Republic of Colombia
4.375%, 7–12–21		1,200		1,272
Luxembourg – 0.2%
Amigo Luxembourg S.A.
7.625%, 1–15–24 (D)(F)	GBP	100		129
Rumo Luxembourg S.a.r.l.
7.375%, 2–9–24 (D)	$	550		566
				695
Mexico – 0.0%
United Mexican States
3.625%, 3–15–22		50		51

2017 SEMIANNUAL REPORT 29

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

OTHER GOVERNMENT SECURITIES (J) (Continued)	Principal			Value
Qatar – 0.5%
Qatar Government Bond
2.375%, 6–2–21 (D)	$	2,000		$	1,978
Saudi Arabia – 0.3%
Saudi Arabia Government Bond
2.375%, 10–26–21 (D)		1,500			1,474
South Korea – 0.1%
Korea Development Bank (The)
1.500%, 1–22–18		500			499
Venezuela – 0.3%
Corporacion Andina de Fomento
2.000%, 5–10–19		1,500			1,496
TOTAL OTHER GOVERNMENT SECURITIES – 2.6%				$	11,453
(Cost: $11,356)
LOANS (E)
Canada
Consumer Discretionary – 0.0%
Gateway Casinos & Entertainment Ltd. (ICE LIBOR plus 375 bps)
4.800%, 2–22–23		139			140
Total Canada – 0.0%					140
France
Health Care – 0.2%
Ceva Sante Animale (3-Month EURIBOR plus 300 bps)
3.750%, 6–30–21 (F)	EUR	436			469
Ethypharm (3-Month EURIBOR plus 500 bps)
5.000%, 7–1–23 (F)		280			300
					769
Total France – 0.2%					769
Luxembourg
Consumer Discretionary – 0.1%
Eircom Finco S.a.r.l. (3-Month EURIBOR plus 400 bps)
4.000%, 5–31–22 (F)		291			310
Formula One Holdings Ltd. and Delta Two S.a.r.l. (ICE LIBOR plus 375 bps)
4.568%, 7–30–21	$	305			304
					614
Total Luxembourg – 0.1%					614
United Kingdom
Energy – 0.1%
KCA Deutag Alpha Ltd. (ICE LIBOR plus 525 bps):
6.750%, 5–16–20		—	*		—	*

LOANS (E) (Continued)	Principal			Value
Energy (Continued)
6.307%, 5–16–20	$	518		$	492
					492
Real Estate – 0.1%
Park Hotels & Resorts, Inc. (ICE LIBOR plus 425 bps)
4.507%, 2–9–24 (F)	GBP	400			507
Total United Kingdom – 0.2%					999
United States
Consumer Discretionary – 4.6%
Academy Sports + Outdoors
0.000%, 7–2–22 (K)	$	23			17
Academy Sports + Outdoors (ICE LIBOR plus 400 bps):
5.000%, 7–2–22		—	*		—	*
5.102%, 7–2–22		63			47
5.039%, 7–2–22		67			49
Academy Sports + Outdoors (ICE LIBOR plus 500 bps)
5.000%, 7–2–22		26			19
Advantage Sales & Marketing, Inc. (ICE LIBOR plus 650 bps)
7.500%, 7–25–22		600			580
Asurion LLC (ICE LIBOR plus 325 bps)
4.232%, 7–8–20		273			274
Asurion LLC (ICE LIBOR plus 750 bps)
8.500%, 3–3–21		260			263
Badger Sportswear, Inc. (ICE LIBOR plus 450 bps)
5.500%, 9–23–22 (C)		174			173
Beasley Broadcast Group, Inc. (ICE LIBOR plus 600 bps)
7.000%, 11–1–23 (C)		134			136
Belk, Inc.
0.000%, 12–10–22 (K)		159			134
Belk, Inc. (ICE LIBOR plus 475 bps)
5.760%, 12–10–22		961			809
BJ’s Wholesale Club, Inc. (ICE LIBOR plus 375 bps)
4.750%, 1–26–24		1,250			1,220
BJ’s Wholesale Club, Inc. (ICE LIBOR plus 750 bps)
8.500%, 1–26–25		980			955
Bre Diamond Mezz 1 LLC and Bre Diamond Lessee Mezz 1 LLC (1-Month U.S. LIBOR plus 600 bps)
7.413%, 12–8–17		2,117			2,139
Bureau Van Dijk Electronic Publishing B.V. (ICE LIBOR plus 425 bps)
4.843%, 9–23–21 (F)	GBP	597			750
Caliber Collision Centers, Inc.
0.000%, 2–1–24 (K)	$	215			217
CBS Radio, Inc. (ICE LIBOR plus 350 bps)
4.500%, 10–17–23		135			136
Charter Communicatons, Inc. (ICE LIBOR plus 200 bps)
2.990%, 1–15–22		267			268

LOANS (E) (Continued)	Principal		Value
Consumer Discretionary (Continued)
Cosmopolitan of Las Vegas (The) (1-Month U.S. LIBOR plus 635 bps)
7.263%, 11–9–18	$	1,100	$	1,109
CSC Holdings LLC:
0.000%, 7–15–25 (K)		52		52
0.000%, 7–17–25 (K)		163		162
Eircom Finco S.a.r.l.
0.000%, 3–10–24 (F)(K)	EUR	250		266
Entercom Communications Corp. (ICE LIBOR plus 350 bps):
4.500%, 11–1–23	$	18		18
6.500%, 11–1–23		2		2
4.555%, 11–1–23		219		219
Equinox Holdings, Inc.
0.000%, 3–2–24 (K)		215		216
Euro Garages (ICE LIBOR plus 550 bps)
5.757%, 1–31–23 (F)	GBP	235		294
Extended Stay America, Inc. and ESH Hopitality, Inc. (ICE LIBOR plus 300 bps)
3.482%, 8–30–23	$	149		150
Global Cash Access Holdings, Inc. (ICE LIBOR plus 525 bps)
6.304%, 12–19–20 (C)		197		199
GNC Holdings, Inc. (ICE LIBOR plus 250 bps)
3.490%, 3–4–19		259		221
Hargray Communications Corp.
0.000%, 3–24–24 (K)		215		215
Hotel del Coronado (1-Month U.S. LIBOR plus 600 bps)
6.913%, 12–9–17		540		545
Hudson Delano Senior Mezz LLC (1-Month U.S. LIBOR plus 650 bps)
7.413%, 2–9–20		1,300		1,306
J.C. Penney Co., Inc. (ICE LIBOR plus 425 bps)
5.304%, 6–23–23		257		255
Jo-Ann Stores, Inc. (ICE LIBOR plus 500 bps)
6.256%, 10–21–23		394		387
KIK Custom Products, Inc.
0.000%, 11–19–21 (K)		53		53
KIK Custom Products, Inc. (ICE LIBOR plus 450 bps)
5.653%, 8–26–22		571		579
KIK Custom Products, Inc. (ICE LIBOR plus 475 bps)
5.250%, 11–19–21		276		276
Learfield Communications, Inc. (ICE LIBOR plus 325 bps)
4.250%, 12–1–23 (C)		150		151
Leslie’s Poolmart, Inc. (ICE LIBOR plus 425 bps)
4.774%, 8–16–23		199		200
Mister Car Wash Holdings, Inc. (ICE LIBOR plus 425 bps):
5.270%, 8–21–21		63		63
5.250%, 8–21–21		313		315
Nexstar Broadcasting Group, Inc. (ICE LIBOR plus 300 bps)
3.943%, 1–17–24		219		222

30 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

LOANS (E) (Continued)	Principal		Value
Consumer Discretionary (Continued)
NPC International, Inc.:
0.000%, 3–30–24 (K)	$	149	$	150
0.000%, 3–30–25 (C)(K)		468		472
Oak Parent, Inc. (ICE LIBOR plus 450 bps)
5.500%, 10–26–23		189		190
Penn National Gaming, Inc. (ICE LIBOR plus 250 bps)
3.524%, 1–19–24		220		221
PETCO Animal Supplies, Inc.
0.000%, 1–26–23 (K)		11		10
PETCO Animal Supplies, Inc. (ICE LIBOR plus 325 bps)
4.287%, 1–26–23		252		237
PNK Entertainment, Inc. (ICE LIBOR plus 300 bps)
3.990%, 4–28–23		63		64
Scientific Games Corp. (ICE LIBOR plus 400 bps):
4.943%, 10–1–21		1		1
4.846%, 10–1–21		209		211
SeaWorld Entertainment, Inc. (ICE LIBOR plus 225 bps)
3.248%, 5–14–20		257		256
Serta Simmons Bedding LLC (ICE LIBOR plus 350 bps)
4.538%, 11–8–23		240		241
Serta Simmons Bedding LLC (ICE LIBOR plus 800 bps)
9.038%, 11–8–24		759		761
Talbots, Inc. (The) (ICE LIBOR plus 450 bps)
5.500%, 3–19–20		703		627
Talbots, Inc. (The) (ICE LIBOR plus 850 bps)
9.500%, 3–19–21		600		510
Tectum Holdings, Inc. (ICE LIBOR plus 475 bps):
5.897%, 8–10–23		43		43
5.802%, 8–10–23		156		158
Thomson Reuters Corp. (ICE LIBOR plus 375 bps)
4.750%, 10–3–23		100		100
Travel Leaders Group LLC (ICE LIBOR plus 525 bps)
6.232%, 1–19–24		272		275
True Religion Apparel, Inc. (ICE LIBOR plus 487.5 bps)
6.022%, 7–30–19		523		110
				20,298
Consumer Staples – 0.4%
Albertsons Cos. LLC (ICE LIBOR plus 325 bps)
4.302%, 6–23–23		172		173
Chefs’ Warehouse, Inc. (The) (ICE LIBOR plus 575 bps)
6.750%, 6–22–22		445		449
Constellation Brands, Inc. (ICE LIBOR plus 375 bps)
4.887%, 12–16–23		150		151
Dole Food Co., Inc.
0.000%, 3–24–24 (K)		215		216

LOANS (E) (Continued)	Principal		Value
Consumer Staples (Continued)
Prestige Brands, Inc. (ICE LIBOR plus 275 bps)
3.732%, 1–26–24	$	208	$	210
Revlon Consumer Products Corp. (ICE LIBOR plus 350 bps)
4.482%, 9–7–23		318		318
Shearer’s Foods LLC (ICE LIBOR plus 675 bps)
7.897%, 6–30–22 (C)		500		485
V Group, Inc.
0.000%, 3–9–24 (K)		215		215
				2,217
Energy – 1.0%
Chesapeake Energy Corp. (ICE LIBOR plus 750 bps)
8.553%, 8–23–21		1,302		1,385
Foresight Energy LLC
0.000%, 3–16–22 (K)		1,362		1,325
Peabody Energy Corp.
0.000%, 9–24–18 (K)		430		436
Westmoreland Coal Co. (ICE LIBOR plus 650 bps)
7.647%, 12–16–20 (C)		995		918
				4,064
Financials – 1.2%
Alliant Holdings Intermediate LLC (ICE LIBOR plus 350 bps)
4.387%, 8–14–22		248		249
AmWINS Group, Inc. (ICE LIBOR plus 275 bps)
3.750%, 1–25–24		214		214
AqGen Island Intermediate Holdings, Inc. (ICE LIBOR plus 400 bps)
5.024%, 12–3–22		301		303
ASP Henry Merger Sub, Inc. (ICE LIBOR plus 450 bps)
5.500%, 9–30–23		150		152
Bre RC Mezz 1 LLC and Bre RC Exeter Mezz 1 LLC (1-Month U.S. LIBOR plus 700 bps)
7.913%, 5–24–18		858		863
Brightwood Capital Advisors LLC (1-Month U.S. LIBOR plus 495 bps)
5.640%, 4–29–23		530		543
CRCI Holdings, Inc. (ICE LIBOR plus 550 bps)
6.647%, 8–31–23		225		224
Dubai World Group (2.000% Cash or 3.750% PIK):
0.000%, 9–30–22 (G)(K)		86		75
2.000%, 9–30–22 (G)		197		173
Edelman Financial Center LLC (ICE LIBOR plus 550 bps)
6.515%, 12–16–22		277		277
Helix Gen Funding LLC
0.000%, 3–10–24 (K)		215		218
Institutional Shareholder Services, Inc. (ICE LIBOR plus 450 bps)
5.606%, 4–30–21 (C)		589		590
NFP Corp. (ICE LIBOR plus 350 bps)
4.647%, 1–8–24		388		392

LOANS (E) (Continued)	Principal		Value
Financials (Continued)
TKC Holdings, Inc. (ICE LIBOR plus 375 bps)
4.750%, 2–1–23	$	215	$	217
TransUnion (ICE LIBOR plus 275 bps)
3.482%, 4–9–21		139		140
Vertiv Intermediate Holding Corp. (ICE LIBOR plus 400 bps):
5.000%, 11–30–23		49		49
5.039%, 11–30–23		169		170
Ziggo Secured Finance B.V. (ICE LIBOR plus 250 bps)
3.412%, 4–25–25		215		215
				5,064
Health Care – 1.3%
Avantor Performance Materials Holdings, Inc.
0.000%, 3–10–24 (K)		9		9
Avantor Performance Materials Holdings, Inc. (ICE LIBOR plus 400 bps)
5.000%, 3–9–24		206		207
BioClinica Holding I L.P. (ICE LIBOR plus 425 bps)
5.250%, 10–20–23		150		151
Change Healthcare Holdings LLC
0.000%, 3–1–24 (K)		296		297
eResearch Technology, Inc. (ICE LIBOR plus 500 bps)
6.035%, 5–3–23		631		637
Ethypharm
0.000%, 7–21–23 (F)(K)	GBP	500		630
ExamWorks Group, Inc. (ICE LIBOR plus 325 bps)
4.232%, 7–27–23	$	249		250
Genoa LLC (ICE LIBOR plus 375 bps)
4.897%, 10–28–23		249		250
Lantheus Medical Imaging, Inc.
0.000%, 6–30–22 (C)(K)		215		215
Patterson Medical Holdings, Inc. (ICE LIBOR plus 475 bps)
5.750%, 8–28–22		250		252
Pharmaceutical Product Development, Inc. (ICE LIBOR plus 325 bps):
4.397%, 8–18–22		132		132
4.250%, 8–18–22		117		117
QuintilesIMS, Inc. (3-Month EURIBOR plus 200 bps)
2.750%, 3–6–24 (F)	EUR	249		266
SavaSeniorCare LLC (1-Month U.S. LIBOR plus 730 bps)
8.213%, 10–11–18	$	1,250		1,253
Schumacher Group (ICE LIBOR plus 400 bps)
5.000%, 7–31–22		286		286
Select Medical Corp. (ICE LIBOR plus 350 bps)
4.500%, 3–6–24		220		222
Team Health Holdings, Inc. (ICE LIBOR plus 275 bps)
3.750%, 2–6–24		151		149

2017 SEMIANNUAL REPORT 31

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

LOANS (E) (Continued)	Principal		Value
Health Care (Continued)
Valeant Pharmaceuticals International, Inc.
0.000%, 4–1–22 (K)	$	3	$	3
Valeant Pharmaceuticals International, Inc. (ICE LIBOR plus 475 bps)
5.570%, 4–1–22		152		152
				5,478
Industrials – 1.9%
Air Canada (ICE LIBOR plus 275 bps)
3.755%, 10–6–23		270		271
American Residential Services LLC
0.000%, 6–30–21 (C)(K)		285		284
Arctic Glacier USA, Inc. (ICE LIBOR plus 425 bps)
5.250%, 3–13–24		215		217
C.H.I. Overhead Doors, Inc. (ICE LIBOR plus 375 bps)
4.250%, 7–31–22		448		447
Carrix, Inc. (1-Month U.S. LIBOR plus 350 bps)
5.500%, 1–7–19		222		218
Casella Waste Systems, Inc. (ICE LIBOR plus 300 bps)
3.943%, 10–17–23		150		150
Cast & Crew Payroll LLC (ICE LIBOR plus 350 bps)
4.650%, 8–3–22		376		377
Cole-Palmer Instrument Co. LLC
0.000%, 3–21–24 (K)		22		22
CPI International, Inc.
0.000%, 4–7–21 (K)		215		217
Crosby Worldwide Ltd. (ICE LIBOR plus 300 bps)
4.052%, 11–22–20		185		170
Dynacast International LLC (ICE LIBOR plus 850 bps)
9.500%, 1–30–23 (C)		683		682
Engility Holdings, Inc. and Engility Corp. (ICE LIBOR plus 425 bps)
4.232%, 8–12–20		59		59
Engility Holdings, Inc. and Engility Corp. (ICE LIBOR plus 475 bps)
4.750%, 8–12–23		122		122
Engility Holdings, Inc. and Engility Corp. (Prime rate plus 275 bps)
6.750%, 8–12–23		1		1
GCA Services Group, Inc. (ICE LIBOR plus 475 bps):
6.040%, 3–1–23		58		58
6.009%, 3–1–23		66		66
5.774%, 3–1–23		73		73
6.068%, 3–1–23		69		70
IMG Worldwide, Inc. (ICE LIBOR plus 425 bps):
4.250%, 5–6–21		1		1
4.290%, 5–6–21		302		303
Information Resources, Inc. (ICE LIBOR plus 425 bps)
5.250%, 1–18–23		215		217
IPS Structural Adhesives Holdings, Inc. and IPS Intermediate Holdings, Inc. (ICE LIBOR plus 525 bps)
6.250%, 12–20–23(C)		236		238

LOANS (E) (Continued)	Principal			Value
Industrials (Continued)
K&G Engineering, Inc. (ICE LIBOR plus 475 bps)
5.750%, 10–20–23 (C)	$	374		$	375
Morsco, Inc. (ICE LIBOR plus 700 bps)
8.000%, 10–31–23		99			100
Oasis Outsourcing Holdings, Inc. (ICE LIBOR plus 475 bps)
5.750%, 12–24–21 (C)		496			497
PAE Holding Corp. (ICE LIBOR plus 550 bps)
6.500%, 10–20–22		839			846
PAE Holding Corp. (ICE LIBOR plus 950 bps)
10.500%, 10–20–23		75			75
Pike Corp. (ICE LIBOR plus 375 bps)
4.750%, 3–10–24		285			288
Power Products LLC (ICE LIBOR plus 450 bps)
5.530%, 3–10–23		430			433
Solera LLC and Solera Finance, Inc. (ICE LIBOR plus 475 bps)
4.250%, 3–3–23		487			488
TMK Hawk Parent Corp. (ICE LIBOR plus 400 bps)
5.000%, 10–1–21		323			325
Tronair, Inc. (1-Month U.S. LIBOR plus 475 bps)
5.856%, 9–8–23 (C)		149			148
Tronair, Inc. (Prime rate plus 375 bps)
8.500%, 9–8–23 (C)		—	*		—	*
U.S. Security Associates Holdings, Inc. (ICE LIBOR plus 500 bps)
6.024%, 7–14–23		249			252
United Site Services, Inc.
0.000%, 8–11–23 (K)		16			16
United Site Services, Inc. (3-Month U.S. LIBOR plus 450 bps)
7.500%, 8–11–23		1			1
United Site Services, Inc. (4-Month U.S. LIBOR plus 450 bps)
7.500%, 8–11–23		—	*		—	*
United Site Services, Inc. (ICE LIBOR plus 450 bps)
5.500%, 8–11–23		282			284
Verisure Holding AB (3-Month EURIBOR plus 325 bps)
3.750%, 12–5–23 (F)	EUR	260			279
					8,670
Information Technology – 2.5%
Ancestry.com LLC (ICE LIBOR plus 825 bps)
9.270%, 10–19–24	$	225			230
Applied Systems, Inc. (ICE LIBOR plus 650 bps)
7.647%, 1–23–22		1,236			1,243
Aptean Holdings, Inc. (ICE LIBOR plus 500 bps)
6.000%, 12–19–22		220			223
CCC Information Services, Inc.:
0.000%, 3–31–24 (C)(K)		215			216
0.000%, 3–31–25 (C)(K)		215			217

LOANS (E) (Continued)	Principal		Value
Information Technology (Continued)
Ciena Corp. (ICE LIBOR plus 250 bps)
3.478%, 1–30–22 (C)	$	210	$	211
Colorado Buyer, Inc.:
0.000%, 3–15–24 (K)		215		216
0.000%, 3–15–25 (K)		167		168
First Data Corp. (ICE LIBOR plus 300 bps)
3.984%, 3–24–21		245		247
FirstLight Fiber (3-Month U.S. LIBOR plus 500 bps)
6.320%, 8–29–21 (C)		150		150
FirstLight Fiber (ICE LIBOR plus 500 bps)
6.320%, 9–7–21 (C)		200		200
Global Tel Link Corp. (ICE LIBOR plus 775 bps)
9.000%, 11–20–20		130		129
Infor, Inc. and Infor (U.S.), Inc. (ICE LIBOR plus 275 bps)
3.897%, 2–2–22		202		202
LANDesk Group, Inc. (ICE LIBOR plus 425 bps)
5.250%, 1–19–24		228		229
Micron Technology, Inc. (ICE LIBOR plus 375 bps)
4.740%, 4–26–22		258		259
Ministry Brands LLC (1-Month U.S. LIBOR plus 500 bps)
6.000%, 9–30–22		250		248
Ministry Brands LLC (ICE LIBOR plus 500 bps)
6.000%, 12–30–17		69		69
Misys plc and Magic Newco LLC
12.000%, 6–12–19 (C)		2,575		2,696
Optiv, Inc. (ICE LIBOR plus 325 bps)
4.250%, 2–1–24		166		167
Optiv, Inc. (ICE LIBOR plus 725 bps)
8.250%, 2–1–25		75		76
SnapAv LLC (ICE LIBOR plus 500 bps)
6.156%, 12–21–22 (C)		222		220
Survey Sampling International (ICE LIBOR plus 500 bps)
6.000%, 12–16–20		337		337
Synchronoss Technologies, Inc. (ICE LIBOR plus 275 bps)
4.082%, 1–19–24		220		219
TIBCO Software, Inc. (ICE LIBOR plus 450 bps)
5.500%, 12–4–20		629		635
TravelCLICK, Inc. & TCH-2 Holdings LLC (ICE LIBOR plus 450 bps)
5.500%, 5–12–21 (C)		524		529
Triple Point Group Holdings, Inc.
0.000%, 7–13–20 (K)		215		200
Vertafore, Inc. (ICE LIBOR plus 325 bps)
4.250%, 6–17–23		231		232
Vision Solutions, Inc. (1-Month U.S. LIBOR plus 650 bps):
7.500%, 6–16–22		3		3
7.637%, 6–16–22		477		476
				10,247

32 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

LOANS (E) (Continued)	Principal		Value
Materials – 0.7%
Anchor Glass Container Corp. (ICE LIBOR plus 325 bps)
4.250%, 12–7–23	$	17	$	17
Associated Asphalt Partners LLC
0.000%, 3–30–24 (K)		215		216
BWAY Corp.
0.000%, 3–23–24 (K)		119		119
Caraustar Industries, Inc. (ICE LIBOR plus 550 bps)
6.647%, 3–9–22		215		217
Chromaflo Technologies Corp. (ICE LIBOR plus 400 bps)
5.000%, 11–18–23		99		101
Ferro Corp. (ICE LIBOR plus 250 bps)
3.536%, 2–14–24		215		216
Flex Acquisition Holdings, Inc. (ICE LIBOR plus 325 bps)
4.250%, 12–29–23		220		221
FPC Holdings, Inc.
0.000%, 5–27–20 (K)		1,200		1,055
ILPEA Parent, Inc. (ICE LIBOR plus 550 bps)
6.500%, 3–2–23 (C)		405		402
Niacet Corp. (EURIBOR plus 450 bps)
5.500%, 2–1–24 (F)	EUR	74		80
Niacet Corp. (ICE LIBOR plus 450 bps)
5.647%, 2–1–24 (C)	$	136		136
Reynolds Group Holdings Ltd. (ICE LIBOR plus 300 bps)
3.982%, 2–5–23		131		132
Styrolution Group GmbH (ICE LIBOR plus 375 bps)
4.750%, 9–30–21		100		100
Versum Materials, Inc. (ICE LIBOR plus 250 bps)
3.647%, 9–30–23		229		231
				3,243
Real Estate – 1.0%
Avolon Holdings Ltd. (ICE LIBOR plus 275 bps)
3.728%, 1–20–22		226		229
AWAS Aviation Capital Ltd. (ICE LIBOR plus 325 bps)
4.360%, 6–10–18		223		224
BioMed Realty Trust, Inc. (1-Month U.S. LIBOR plus 800 bps)
8.913%, 2–9–18		122		124
Capital Automotive L.P. (ICE LIBOR plus 300 bps)
4.000%, 3–24–24 (C)		215		217
Inland Retail Real Estate Trust, Inc. (1-Month U.S. LIBOR plus 650 bps)
7.285%, 4–1–19		1,550		1,564
iStar Financial, Inc. (ICE LIBOR plus 450 bps)
4.750%, 7–1–20		249		251
Terra Millennium Corp. (ICE LIBOR plus 625 bps)
7.250%, 10–31–22 (C)		437		435

LOANS (E) (Continued)	Principal		Value
Real Estate (Continued)
Workspace Property Trust (1-Month U.S. LIBOR plus 675 bps)
7.663%, 10–9–18	$	1,000	$	1,004
				4,048
Telecommunication Services – 0.3%
GTT Communications, Inc. (ICE LIBOR plus 400 bps)
5.000%, 1–9–24		219		222
Level 3 Financing, Inc.
0.000%, 2–22–24 (K)		220		220
Lightower Fiber Networks (ICE LIBOR plus 325 bps)
4.397%, 4–13–20		271		273
Sprint Communications, Inc. (ICE LIBOR plus 250 bps)
3.500%, 2–2–24		430		430
Zayo Group LLC (ICE LIBOR plus 200 bps)
3.500%, 1–19–21		220		221
				1,366
Utilities – 0.3%
Westinghouse Electric Co. LLC
0.000%, 3–29–18 (K)		844		823
Westinghouse Electric Co. LLC (ICE LIBOR plus 625 bps)
7.250%, 3–29–18		656		640
				1,463
Total United States – 15.2%				66,158
TOTAL LOANS – 15.7%			$	68,680
(Cost: $68,296)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
United States – 2.8%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO:
2.699%, 5–25–18		1,474		1,491
3.742%, 4–25–45 (D)		1,800		1,844
3.365%, 5–25–45 (D)		1,185		1,209
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Year U.S. Treasury index plus 400 bps)
4.882%, 7–25–44 (D)(E)		2,150		2,210
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 2-year U.S. Treasury index):
3.752%, 2–25–45 (D)(E)		500		511
3.563%, 8–25–45 (D)(E)		350		357
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates
2.500%, 6–15–39		1,205		1,220
Federal National Mortgage Association Agency REMIC/CMO:
2.990%, 11–1–18		298		304
2.000%, 4–25–40		1,409		1,401

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
United States (Continued)
3.000%, 2–25–44	$	272	$	280
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
4.490%, 5–1–19		475		495
4.646%, 7–1–20		574		605
Government National Mortgage Association Fixed Rate Pass-Through Certificates
3.500%, 4–20–34		195		201
				12,128
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 2.8%			$	12,128
(Cost: $12,231)
UNITED STATES GOVERNMENT OBLIGATIONS
United States – 6.5%
U.S. Treasury Bonds
2.250%, 11–15–25		7,350		7,285
U.S. Treasury Notes:
0.625%, 9–30–17		5,850		5,842
1.125%, 1–15–19		5,750		5,739
1.125%, 2–28–19		4,000		3,991
1.375%, 9–30–20		5,350		5,296
				28,153
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 6.5%			$	28,153
(Cost: $28,418)
SHORT-TERM SECURITIES
Commercial Paper (L) – 11.0%
BorgWarner, Inc.
1.100%, 4–13–17		8,000		7,997
Campbell Soup Co.
1.180%, 4–25–17		2,100		2,098
CVS Health Corp.
1.130%, 4–10–17		5,000		4,998
Ecolab, Inc.
1.170%, 4–17–17		5,000		4,997
Kroger Co. (The)
1.150%, 4–3–17		7,138		7,137
Mondelez International, Inc.
1.100%, 4–7–17		3,000		2,999
NBCUniversal Enterprise, Inc.
1.220%, 4–27–17		7,000		6,994
River Fuel Funding Co. #3, Inc. (GTD by Bank of Nova Scotia)
0.870%, 4–14–17		7,000		6,998
Sysco Corp.
1.090%, 4–3–17		4,043		4,043
				48,261
Master Note – 1.5%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
1.190%, 4–5–17 (M)		6,384		6,384

2017 SEMIANNUAL REPORT 33

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations – 1.3%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate)
0.870%, 4–7–17 (M)	$	5,600	$	5,600
TOTAL SHORT-TERM SECURITIES – 13.8%			$	60,245
(Cost: $60,247)
TOTAL INVESTMENT SECURITIES – 101.2%			$	441,498
(Cost: $435,982)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.2)%				(5,035	)
NET ASSETS – 100.0%			$	436,463

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Restricted security. At March 31, 2017, the Fund owned the following restricted security:

Security	Acquisition Date(s)		Shares		Cost		Market Value
Pinnacle Agriculture Enterprises LLC		3–10–17		389	$	177	$	177

    The total value of this security represented 0.0% of net assets at March 31, 2017.

(C) Securities whose value was determined using significant unobservable inputs.

(D) Securities were purchased pursuant to an exemption from registration available under Rule 144A under the Securities Act of 1933 and may only be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2017 the total value of these securities amounted to $173,644 or 39.8% of net assets.

(E) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

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

(G) Payment-in-kind bond which may pay interest in additional par and/or in cash. Rates shown are the current rate and possible payment rates.

(H) Step bond that pays an initial coupon rate for the first period and then a higher or lower coupon rate for the following periods. Interest rate disclosed is that which is in effect at March 31, 2017.

(I) Zero coupon bond.

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

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

(L) Rate shown is the yield to maturity at March 31, 2017.

(M) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description.

34 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

The following forward foreign currency contracts were outstanding at March 31, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		2,050	U.S. Dollar		2,566	6–30–17	JPMorgan Securities LLC	$	—	$	8
Euro		2,920	U.S. Dollar		3,168	6–30–17	JPMorgan Securities LLC		39		—
Canadian Dollar		500	U.S. Dollar		375	4–21–17	Morgan Stanley International		—		1
Euro		752	U.S. Dollar		812	4–21–17	Morgan Stanley International		9		—
								$	48	$	9

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of March 31, 2017. 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	$	7,048	$	—	$	—
Preferred Stocks		—		—		177
Asset-Backed Securities		—		3,792		—
Corporate Debt Securities		—		244,321		—
Mortgage-Backed Securities		—		5,501		—
Other Government Securities		—		11,453		—
Loans		—		57,488		11,192
United States Government Agency Obligations		—		12,128		—
United States Government Obligations		—		28,153		—
Short-Term Securities		—		60,245		—
Total	$	7,048	$	423,081	$	11,369
Forward Foreign Currency Contracts	$	—	$	48	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	9	$	—

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

	Preferred Stocks			Loans
Beginning Balance 10-1-16	$	—		$	4,600
Net realized gain (loss)		—			2
Net change in unrealized appreciation (depreciation)		—	*		87
Purchases		177			7,591
Sales		—			(1,055	)
Amortization/Accretion of premium/discount		—			(12	)
Transfers into Level 3 during the period		—			1,440
Transfers out of Level 3 during the period		—			(1,461	)
Ending Balance 3-31-17	$	177		$	11,192
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 3-31-17	$	—	*	$	97

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 March 31, 2017, there were no transfers between Levels 1 and 2.

2017 SEMIANNUAL REPORT 35

SCHEDULE OF INVESTMENTS IVY APOLLO STRATEGIC INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

Information about Level 3 fair value measurements:

	Fair Value at 3–31–17		Valuation Technique(s)	Unobservable Input(s)
Assets
Preferred Stocks	$	177	Broker quotes	Broker quotes
Loans		11,192	Third-party valuation service	Broker quotes

The following acronyms are used throughout this schedule:

CLO = Collateralized Loan Obligation

CMO = Collateralized Mortgage Obligation

EURIBOR = Euro Interbank Offered Rate

GTD = Guaranteed

ICE = IntercontinentalExchange

LIBOR = London Interbank Offered Rate

PIK = Payment in kind

REMIC = Real Estate Mortgage Investment Conduit

TB = Treasury Bill

Market Sector Diversification
(as a % of net assets)
Consumer Discretionary	17.4%
Financials	16.0%
United States Government and Government Agency Obligations	9.3%
Information Technology	7.2%
Telecommunication Services	5.9%
Consumer Staples	5.9%
Industrials	5.7%
Energy	5.3%
Materials	5.2%
Health Care	3.4%
Other Government Securities	2.6%
Utilities	1.9%
Real Estate	1.6%
Other+	12.6%

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

See Accompanying Notes to Financial Statements.

36 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND

ALL DATA IS AS OF MARCH 31, 2017 (UNAUDITED)

Asset Allocation

Bonds	89.9%
Municipal Bonds	89.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	10.1%

Quality Weightings

Investment Grade	41.8%
AA	13.0%
A	4.3%
BBB	24.5%
Non-Investment Grade	48.1%
BB	7.1%
B	5.2%
Below CCC	2.7%
Non-rated	33.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	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.

+ 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.

2017 SEMIANNUAL REPORT 37

SCHEDULE OF INVESTMENTS IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

MUNICIPAL BONDS	Principal		Value
California – 84.7%
CA Cnty Tob Securitization Agy, Tob Stlmt Asset-Bkd Bonds (Stanislaus Cnty Tob Funding Corp.), Ser 2006,
0.000%, 6–1–55 (A)	$	1,500	$	54
CA Edu Fac Auth, Rev Bonds (Loma Linda Univ), Ser 2017A,
5.000%, 4–1–47		300		331
CA Muni Fin Auth, Rev Bonds (CA Baptist Univ), Ser 2016A,
5.000%, 11–1–46		500		503
CA Muni Fin Auth, Rev Bonds (NorthBay Hlthcare Group), Ser 2017A,
5.000%, 11–1–47		425		452
CA Pollutn Ctl Fin Auth, Water Furnishing Rev Bonds (Poseidon Res (Channelside) L.P. Desalination Proj), Ser 2012,
5.000%, 11–21–45		250		251
CA Sch Fin Auth, Charter Sch Rev Bonds (Ace Charter Sch – Oblig Group), Ser 2016A,
5.000%, 6–1–52		300		272
CA Sch Fin Auth, Charter Sch Rev Bonds (Encore Edu Oblig Group), Ser 2016A,
5.000%, 6–1–52		300		274
CA Sch Fin Auth, Charter Sch Rev Bonds (Rocketship Edu – Oblig Group), Ser 2017A,
5.250%, 6–1–52		250		250
CA Sch Fin Auth, Charter Sch Rev Rfdg Bonds (Aspire Pub Sch – Oblig Group), Ser 2016,
5.000%, 8–1–41		250		263
CA Sch Fin Auth, Sch Fac Rev Bonds (Alliance for College-Ready Pub Sch Proj), Ser 2016C,
5.000%, 7–1–31		250		268
CA Sch Fin Auth, Sch Fac Rev Bonds (Granada Hills Charter High Sch Oblig Group), Ser 2017A,
5.000%, 7–1–48		350		361
CA Statewide Cmnty Dev Auth, Rev Bonds (Loma Linda Univ Med Ctr), Ser 2016A,
5.250%, 12–1–56		250		265
CA Statewide Comnty Dev Auth, Rev Bonds (Loma Linda Univ Med Ctr), Ser 2014A,
5.250%, 12–1–44		250		266
CA Statewide Comnty Dev Auth, Sch Fac Rev Bonds (Alliance for College Ready Pub Sch - 47th and Main Proj), Ser 2012A,
6.375%, 7–1–47		100		110
CA Various Purp GO Bonds,
5.000%, 9–1–46		500		570
Chino Pub Fin Auth, Local Agy Rfdg Bonds, Ser 2016A,
3.500%, 9–1–43		250		217

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
Golden State Tob Securitization Corp., Enhanced Tob Stlmt Asset-Bkd Bonds, Ser 2017A-1,
5.000%, 6–1–29 (B)	$	750	$	869
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007A-1,
5.000%, 6–1–33		100		100
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007A-1 Sr Current Interest Bonds,
5.750%, 6–1–47		470		470
Los Angeles, CA, Dept of Arpts, Los Angeles Intl Arpt Sub Rev Bonds, Ser 2016B,
5.000%, 5–15–46		300		334
M-S-R Energy Auth, Gas Rev Bonds, Ser 2009C,
7.000%, 11–1–34		300		414
Murrieta, CA, Cmnty Fac Dist No. 2005-5, Spl Tax Bonds (Golden City), Ser 2017A,
5.000%, 9–1–46		300		319
Ontario, CA, Cmnty Fac Dist No. 28, Spl Tax Bonds (New Haven Fac – Area A), Ser 2017:
5.000%, 9–1–42		130		136
5.000%, 9–1–47		230		240
Oro Grande Elem Sch Dist, Cert of Part, Ser 2013,
5.000%, 9–15–27		40		44
Palamar Hlth, Rfdg Rev Bonds, Ser 2016:
4.000%, 11–1–39		175		163
5.000%, 11–1–39		500		529
Poway Unif Sch Dist, Spl Tax Bonds (Cmnty Fac Dist No. 15 Del Sur East Impvt Area C), Ser 2016,
5.000%, 9–1–46		250		271
Redev Agy of the City of San Jose, Merged Area Redev Proj Tax Alloc Bonds, Ser 2007B,
4.250%, 8–1–36		250		250
Sacramento, CA, Spl Tax Bonds (Natomas Cent Comnty Fac), Ser 2016,
5.000%, 9–1–41		250		267
San Bernardino, CA, Cmnty Fac Dist No. 2006-1 (Lytle Creek North), Impvt Area No. 4 Spl Tax Bonds, Ser 2016,
4.000%, 9–1–42		250		232
San Buenaventura Rev Bonds (Cmnty Mem Hlth Sys), Ser 2011,
7.500%, 12–1–41		100		116
San Francisco City and Cnty Pub Util Comsn, Water Rev Bonds, Ser 2016AB,
4.000%, 11–1–39		250		257

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
San Jose, CA, Arpt Rev Rfdg Bonds, Ser 2017A,
5.000%, 3–1–47 (B)	$	200	$	221
Successor Agy to the Redev Agy of the City of Tulare, Tax Alloc Rfdg Bonds, Ser 2017A (Insured by BAMAC),
4.000%, 8–1–40		250		248
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		250		250
William S. Hart Union High Sch Dist, Cmnty Fac Dist No. 2015-1 Spl Tax Bonds, Ser 2017,
5.000%, 9–1–47		300		319
				10,756
Puerto Rico – 4.5%
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2011C,
5.750%, 7–1–36 (C)		85		50
PR Aqueduct and Sewer Auth, Rev Bonds, Ser 2012A,
5.125%, 7–1–37		50		38
PR Aqueduct and Sewer Auth, Rev Bonds, Ser A,
6.000%, 7–1–44		250		191
PR Elec Power Auth, Power Rev Rfdg Bonds, Ser VV (Insured by FGIC),
5.250%, 7–1–35		60		63
PR Elec Power Auth, Power Rev Rfdg Bonds, Ser VV (Insured by MBIA),
5.250%, 7–1–29		60		63
PR Hwy and Trans Auth, Trans Rev Rfdg Bonds, Ser 2007N,
5.250%, 7–1–32		95		100
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, Sr Ser 2011C,
5.000%, 8–1–46		100		65
				570
Virgin Islands – 0.7%
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Cruzan Proj), Ser 2009A,
5.000%, 10–1–29		100		84
TOTAL MUNICIPAL BONDS – 89.9%			$	11,410
(Cost: $11,547)
SHORT-TERM SECURITIES
Master Note – 1.2%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.190%, 4–5–17 (D)		152		152

38 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – 16.7%
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.) (BVAL plus 7 bps),
0.860%, 4–7–17 (D)	$	475	$	475
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank N.A.) (BVAL plus 14 bps),
0.840%, 4–7–17 (D)		250		250
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.) (BVAL plus 11 bps),
0.920%, 4–7–17 (D)		90		90
IA Fin Auth, Var Rate Demand Hlth Fac Rev Bonds (Great River Med Ctr Proj), Ser 2008 (GTD by Great River Medical Center) (BVAL plus 17 bps),
0.900%, 4–1–17 (D)		475		475

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
LA Pub Fac Auth, Rev Bonds (Air Products and Chemicals Proj), Ser 2008A (GTD by Air Products and Chemicals, Inc.) (BVAL plus 9.7 bps),
0.930%, 4–1–17 (D)	$	150	$	150
SD Hlth and Edu Fac Auth, Var Rate Dmnd Rev Bonds (Sioux Vly Hosp and Hlth Sys), Ser 2001C (GTD by U.S. Bank N.A.) (BVAL plus 9 bps),
0.910%, 4–7–17 (D)		475		475

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
The Regents of the Univ of CA, Gen Rev Bonds, Ser AL (BVAL plus 9 bps),
0.890%, 4–7–17 (D)	$	200	$	200
				2,115
TOTAL SHORT-TERM SECURITIES – 17.9%			$	2,267
(Cost: $2,267)
TOTAL INVESTMENT SECURITIES – 107.8%			$	13,677
(Cost: $13,814)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (7.8%)				(987	)
NET ASSETS – 100.0%			$	12,690

Notes to Schedule of Investments

(A) Zero coupon bond.

(B) Purchased on a when-issued basis with settlement subsequent to March 31, 2017.

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

(D) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of March 31, 2017. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Municipal Bonds	$	—	$	11,410	$	—
Short-Term Securities		—		2,267		—
Total	$	—	$	13,677	$	—

During the period ended March 31, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

BAMAC = Build America Mutual Assurance Co.

BVAL = Bloomberg Valuation Municipal AAA Benchmark

FGIC = Financial Guaranty Insurance Co.

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

MBIA = Municipal Bond Insurance Association

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 39

PORTFOLIO HIGHLIGHTS IVY IG INTERNATIONAL SMALL CAP FUND

ALL DATA IS AS OF MARCH 31, 2017 (UNAUDITED)

Asset Allocation

Stocks	94.4%
Consumer Discretionary	20.8%
Industrials	20.1%
Information Technology	13.2%
Materials	11.3%
Financials	8.7%
Real Estate	7.6%
Health Care	4.8%
Consumer Staples	4.4%
Energy	3.0%
Utilities	0.5%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	5.6%

Country Weightings

Europe	51.0%
Germany	10.6%
United Kingdom	10.0%
France	6.8%
Ireland	6.4%
Isle Of Man	4.3%
Spain	3.6%
Other Europe	9.3%
Pacific Basin	43.4%
Japan	34.0%
Australia	5.0%
Other Pacific Basin	4.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	5.6%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Dalata Hotel Group plc	Ireland	Consumer Discretionary	Hotels, Resorts & Cruise Lines
Ebara Corp.	Japan	Industrials	Industrial Machinery
GVC Holdings plc	Isle Of Man	Consumer Discretionary	Casinos & Gaming
Daifuku Co. Ltd.	Japan	Industrials	Industrial Machinery
Gamesa Corporacion Tecnologica S.A.	Spain	Industrials	Heavy Electrical Equipment
OSG Corp.	Japan	Industrials	Industrial Machinery
Kewpie Corp.	Japan	Consumer Staples	Packaged Foods & Meats
SCSK Corp.	Japan	Information Technology	IT Consulting & Other Services
Teleperformance SE	France	Industrials	Research & Consulting Services
GLP J-REIT	Japan	Real Estate	Industrial 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.

40 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY IG INTERNATIONAL SMALL CAP FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Consumer Discretionary – 1.7%
Ardent Leisure Group		123	$	172
Super Retail Group Ltd.		41		320
				492
Energy – 0.9%
Santos Ltd.		96		278
Information Technology – 1.0%
carsales.com Ltd.		36		305
Materials – 1.4%
Evolution Mining Ltd.		110		176
Sandfire Resources NL		49		239
				415
Total Australia – 5.0%				1,490
Austria
Industrials – 0.9%
Andritz AG		5		261
Total Austria – 0.9%				261
Belgium
Materials – 1.3%
Tessenderlo Chemie N.V.		9		342
Umicore S.A.		1		30
				372
Total Belgium – 1.3%				372
China
Consumer Discretionary – 1.7%
Global Brands Group Holding Ltd. (A)		1,818		194
Man Wah Holdings Ltd.		400		318
				512
Industrials – 1.0%
Zhuzhou CSR Times Electric Co. Ltd., H Shares		55		292
Total China – 2.7%				804
France
Consumer Discretionary – 0.8%
Havas S.A. (A)		27		238
Industrials – 2.5%
Alstom		10		293
Teleperformance SE		4		469
				762
Information Technology – 3.0%
Sopra Steria Group S.A.		3		443
Ubisoft Entertainment S.A. (A)		10		433
				876

COMMON STOCKS (Continued)	Shares		Value
Utilities – 0.5%
Rubis Group (A)		1	$	134
Total France – 6.8%				2,010
Germany
Consumer Discretionary – 1.1%
TAKKT AG		14		316
Financials – 1.0%
Aurelius Equity Opportunities SE & Co. KGaA		3		119
FinTech Group AG (A)		12		190
				309
Health Care – 1.2%
Sartorius AG		4		363
Industrials – 2.7%
Duerr AG		4		372
Sixt Leasing SE		8		149
Sixt SE		6		253
				774
Information Technology – 1.2%
Dialog Semiconductor plc (A)		3		155
United Internet AG		5		200
				355
Materials – 2.5%
Aurubis AG		4		249
Biotechnology Research and Information Network AG (A)		6		106
Fuchs Petrolub SE		8		391
				746
Total Germany – 9.7%				2,863
Ireland
Consumer Discretionary – 2.2%
Dalata Hotel Group plc (A)		130		621
Consumer Staples – 1.3%
Origin Enterprises plc		6		44
Total Produce plc		171		355
				399
Health Care – 1.1%
UDG Healthcare plc		37		322
Industrials – 0.6%
Kingspan Group plc		6		177
Materials – 1.2%
Smurfit Kappa Group plc		14		362
Total Ireland – 6.4%				1,881
Isle Of Man
Consumer Discretionary – 1.8%
GVC Holdings plc		60		548

COMMON STOCKS (Continued)	Shares		Value
Energy – 1.3%
Playtech plc		32	$	377
Information Technology – 1.2%
Paysafe Group plc (A)		61		355
Total Isle Of Man – 4.3%				1,280
Italy
Financials – 0.5%
Mediobanca S.p.A.		18		161
Industrials – 1.0%
Prysmian S.p.A.		11		297
Total Italy – 1.5%				458
Japan
Consumer Discretionary – 6.4%
Haseko Corp.		41		447
Hitachi Maxwell Ltd.		15		266
Isetan Mitsukoshi Holdings Ltd.		10		110
NGK Spark Plug Co. Ltd.		11		249
Nifco, Inc.		9		442
Ryohin Keikaku Co. Ltd.		2		394
				1,908
Consumer Staples – 3.1%
Kewpie Corp.		17		487
Matsumotokiyoshi Holdings Co. Ltd.		10		455
				942
Financials – 3.3%
Gunma Bank Ltd. (The)		48		249
Hiroshima Bank Ltd. (The)		69		293
Suruga Bank Ltd.		20		417
				959
Health Care – 0.8%
Nippon Shinyaku Co. Ltd.		5		234
Industrials – 6.9%
Daifuku Co. Ltd.		20		506
Ebara Corp.		17		559
Hoshizaki Electric Co. Ltd.		3		212
OSG Corp.		24		493
Tsubaki Nakashima Co. Ltd.		15		245
				2,015
Information Technology – 5.6%
Alps Electric Co. Ltd.		14		400
DISCO Corp.		2		365
SCSK Corp.		12		476
Shimadzu Corp.		26		410
				1,651
Materials – 2.7%
Maruichi Steel Tube Ltd.		12		350
Zeon Corp.		38		434
				784

2017 SEMIANNUAL REPORT 41

SCHEDULE OF INVESTMENTS IVY IG INTERNATIONAL SMALL CAP FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

COMMON STOCKS (Continued)	Shares			Value
Real Estate – 5.2%
GLP J-REIT		—	*	$	457
Ichigo, Inc.		136			399
Kenedix Office Investment Corp.		—	*		271
TechnoPro Holdings, Inc.		11			424
					1,551
Total Japan – 34.0%					10,044
Luxembourg
Real Estate – 0.8%
Grand City Properties S.A. (A)		13			239
Total Luxembourg – 0.8%					239
Netherlands
Information Technology – 1.2%
ASM International N.V.		6			347
Materials – 1.4%
Royal DSM Heerlen		6			420
Total Netherlands – 2.6%					767
Singapore
Industrials – 0.7%
Singapore Post Ltd.		213			207
Real Estate – 1.0%
Manulife U.S. REIT		363			306
Total Singapore – 1.7%					513
Spain
Consumer Discretionary – 1.1%
Telepizza Group S.A. (A)		66			334
Health Care – 0.8%
Almirall S.A. (A)		15			241
Industrials – 1.7%
Gamesa Corporacion Tecnologica S.A.		21			499
Total Spain – 3.6%					1,074

COMMON STOCKS (Continued)	Shares			Value
Sweden
Consumer Discretionary – 0.8%
Dometic Group AB (A)		30		$	224
Materials – 0.5%
Boliden AB		5			146
Total Sweden – 1.3%					370
Switzerland
Financials – 0.9%
Helvetia Holding AG		—	*		269
Total Switzerland – 0.9%					269
United Kingdom
Consumer Discretionary – 3.2%
Bellway plc		11			375
Merlin Entertainments plc		48			290
SuperGroup plc		6			110
Taylor Wimpey plc		76			184
					959
Energy – 0.8%
Cairn Energy plc (A)		92			236
Financials – 3.0%
Direct Line Insurance Group plc		47			205
Provident Financial plc		7			258
St. James’s Place plc		13			177
TP ICAP plc		42			247
					887
Industrials – 2.1%
Diploma plc		32			421
National Express Group plc		46			209
					630

COMMON STOCKS (Continued)	Shares		Value
Materials – 0.3%
Randgold Resources Ltd.		1	$	83
Real Estate – 0.6%
Great Portland Estates plc		20		163
Total United Kingdom – 10.0%				2,958
TOTAL COMMON STOCKS – 93.5%			$	27,653
(Cost: $26,629)
PREFERRED STOCKS
Germany
Health Care – 0.9%
Dragerwerk AG & Co. KGaA		3		268
Total Germany – 0.9%				268
TOTAL PREFERRED STOCKS – 0.9%			$	268
(Cost: $227)
SHORT-TERM SECURITIES	Principal
Master Note – 2.7%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
1.190%, 4–5–17 (B)	$	786		786
TOTAL SHORT-TERM SECURITIES – 2.7%			$	786
(Cost: $786)
TOTAL INVESTMENT SECURITIES – 97.1%			$	28,707
(Cost: $27,642)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 2.9%				871
NET ASSETS – 100.0%			$	29,578

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 March 31, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description.

42 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY IG INTERNATIONAL SMALL CAP FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of March 31, 2017. See Note 3 to the Financial Statements for further information regarding fair value measurement.

Assets	Level 1		Level 2		Level 3
Investments in Securities
Common Stocks	$	27,653	$	—	$	—
Preferred Stocks		268		—		—
Short-Term Securities		—		786		—
Total	$	27,921	$	786	$	—

During the period ended March 31, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trust

Market Sector Diversification
(as a % of net assets)
Consumer Discretionary	20.8%
Industrials	20.1%
Information Technology	13.2%
Materials	11.3%
Financials	8.7%
Real Estate	7.6%
Health Care	4.8%
Consumer Staples	4.4%
Energy	3.0%
Utilities	0.5%
Other+	5.6%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 43

PORTFOLIO HIGHLIGHTS IVY PICTET EMERGING MARKETS LOCAL CURRENCY DEBT FUND^(a)

ALL DATA IS AS OF MARCH 31, 2017 (UNAUDITED)

Asset Allocation

Purchased Options	0.0%
Bonds	86.6%
Other Government Securities	86.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	13.4%

Quality Weightings

Investment Grade	60.7%
AA	6.8%
A	17.7%
BBB	36.2%
Non-Investment Grade	25.9%
BB	7.0%
B	5.5%
Non-rated	13.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Purchased Options	13.4%

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 Emerging Markets Local Currency Debt Funds	Rank	Percentile
1 Year	86/96		89

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	30.5%
Thailand	13.5%
Malaysia	4.7%
Philippines	4.4%
Indonesia	4.2%
Turkey	3.6%
Other Pacific Basin	0.1%
South America	27.8%
Brazil	7.0%
Chile	6.7%
Argentina	5.5%
Peru	4.5%
Columbia	4.1%
Europe	17.4%
Russia	4.7%
Romania	4.5%
Hungary	4.4%
Poland	3.8%
North America	6.6%
Mexico	6.6%
Africa	4.3%
South Africa	4.3%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options	13.4%

+ 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.

(a) Effective April 3, 2017, the name of Ivy Emerging Markets Local Currency Debt Fund has changed to Ivy Pictet Emerging Markets Local Currency Debt Fund.

44 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY PICTET EMERGING MARKETS LOCAL CURRENCY DEBT FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Value
90-Day Eurodollar June Futures, Put $98.00, Expires 6–19–17		56	$	—	*
TOTAL PURCHASED OPTIONS – 0.0%			$	—	*
(Cost: $2)
OTHER GOVERNMENT SECURITIES (A)	Principal
Argentina – 5.5%
Argentine Bonos del Tesoro
18.200%, 10–3–21 (B)	ARS	16,913		1,175
Republic of Argentina:
21.200%, 9–19–18 (B)		350		24
16.000%, 10–17–23 (B)		7,797		535
15.500%, 10–17–26 (B)		17,642		1,208
				2,942
Brazil – 7.0%
Brazil Letras do Tesouro Nacional:
0.000%, 1–1–18 (B)(C)	BRL	2,990		891
0.000%, 7–1–18 (B)(C)		3,700		1,055
0.000%, 1–1–19 (B)(C)		600		164
Brazil Notas do Tesouro Nacional:
10.000%, 1–1–21 (B)		1,322		425
10.000%, 1–1–23 (B)		870		279
10.000%, 1–1–25 (B)		1,259		402
10.000%, 1–1–27 (B)		1,580		504
				3,720
Chile – 6.7%
Bonos de la Tesoreria de la Republica en pesos
4.500%, 2–28–21 (B)	CLP	105,000		165
Republic of Chile
5.500%, 8–5–20 (B)		2,125,000		3,393
				3,558
Columbia – 4.1%
Colombian TES:
10.000%, 7–24–24 (B)	COP	605,000		252
7.500%, 8–26–26 (B)		1,175,000		431
6.000%, 4–28–28 (B)		2,946,500		964
7.750%, 9–18–30 (B)		1,222,600		460
7.000%, 6–30–32 (B)		270,000		94
				2,201
Hungary – 4.4%
Hungary Government Bond:
4.000%, 4–25–18 (B)	HUF	45,000		162
6.500%, 6–24–19 (B)		12,000		47
7.000%, 6–24–22 (B)		99,250		427
6.000%, 11–24–23 (B)		126,240		528
5.500%, 6–24–25 (B)		279,110		1,133
3.000%, 10–27–27 (B)		20,000		67
				2,364

OTHER GOVERNMENT SECURITIES (A) (Continued)	Principal		Value
Indonesia – 4.2%
Indonesia Government Bond:
9.000%, 3–15–29 (B)	IDR	13,150,000	$	1,093
8.250%, 6–15–32 (B)		600,000		46
8.375%, 3–15–34 (B)		7,400,000		587
8.250%, 5–15–36 (B)		1,800,000		142
8.750%, 2–15–44 (B)		4,600,000		365
				2,233
Malaysia – 4.7%
Malaysia Government Bond:
3.654%, 10–31–19 (B)	MYR	1,890		427
3.492%, 3–31–20 (B)		580		130
4.048%, 9–30–21 (B)		390		89
3.418%, 8–15–22 (B)		1,070		236
3.795%, 9–30–22 (B)		3,180		713
4.181%, 7–15–24 (B)		660		150
4.392%, 4–15–26 (B)		180		41
4.498%, 4–15–30 (B)		460		104
4.232%, 6–30–31 (B)		1,170		256
4.127%, 4–15–32 (B)		122		26
3.844%, 4–15–33 (B)		720		149
4.935%, 9–30–43 (B)		760		173
				2,494
Mexico – 6.6%
Mexican Bonos:
5.000%, 6–15–17 (B)	MXN	8,200		437
8.500%, 12–13–18 (B)		24,000		1,318
10.000%, 12–5–24 (B)		3,095		194
5.750%, 3–5–26 (B)		2,851		139
7.500%, 6–3–27 (B)		4,426		243
7.750%, 5–29–31 (B)		3,130		174
7.750%, 11–13–42 (B)		18,180		1,005
				3,510
Peru – 4.5%
Republic of Peru:
5.700%, 8–12–24 (B)	PEN	348		109
6.350%, 8–12–28 (B)		425		133
6.950%, 8–12–31 (B)		810		268
6.900%, 8–12–37 (B)		3,467		1,140
6.850%, 2–12–42 (B)		2,340		756
				2,406
Philippines – 4.4%
Republic of Philippines:
4.950%, 1–15–21 (B)	PHP	30,000		607
6.250%, 1–14–36 (B)		79,000		1,748
				2,355
Poland – 3.8%
Poland Government Bond:
2.500%, 7–25–18 (B)	PLN	680		173
1.750%, 7–25–21 (B)		860		208
5.750%, 9–23–22 (B)		560		161
4.000%, 10–25–23 (B)		1,128		300
2.500%, 7–25–26 (B)		1,780		418
2.500%, 7–25–27 (B)		290		67

OTHER GOVERNMENT SECURITIES (A) (Continued)	Principal		Value
Poland (Continued)
5.750%, 4–25–29 (B)	PLN	2,172	$	665
				1,992
Romania – 4.5%
Romania Government Bond:
3.250%, 1–17–18 (B)	RON	800		191
5.750%, 4–29–20 (B)		920		239
5.950%, 6–11–21 (B)		820		218
5.850%, 4–26–23 (B)		3,030		812
4.750%, 2–24–25 (B)		3,025		763
5.800%, 7–26–27 (B)		700		190
				2,413
Russia – 4.7%
Russia Government Bond:
7.400%, 4–19–17 (B)	RUB	6,400		114
7.400%, 6–14–17 (B)		6,000		106
7.000%, 8–16–23 (B)		12,160		207
7.050%, 1–19–28 (B)		123,514		2,061
				2,488
South Africa – 4.3%
Republic of South Africa:
6.500%, 2–28–41 (B)	ZAR	2,000		105
8.750%, 1–31–44 (B)		1,900		128
8.750%, 2–28–48 (B)		30,355		2,047
				2,280
South Korea – 0.1%
Export Import Bank Korea
8.000%, 5–15–18 (B)	IDR	700,000		53
Thailand – 13.5%
Thailand Government Bond:
3.250%, 6–16–17 (B)	THB	147,567		4,309
2.800%, 10–10–17 (B)		8,800		258
1.875%, 6–17–22 (B)		26,624		763
3.625%, 6–16–23 (B)		1,100		34
3.850%, 12–12–25 (B)		30,950		988
2.125%, 12–17–26 (B)		8,800		244
3.650%, 6–20–31 (B)		8,440		262
3.775%, 6–25–32 (B)		2,100		65
4.260%, 12–12–37 (B)		8,000		265
				7,188
Turkey – 3.6%
Turkey Government Bond:
6.300%, 2–14–18 (B)	TRY	3,000		795
10.400%, 3–27–19 (B)		1,100		299
8.800%, 9–27–23 (B)		2,020		505
10.400%, 3–20–24 (B)		370		100
9.000%, 7–24–24 (B)		360		91
10.600%, 2–11–26 (B)		480		131
				1,921
TOTAL OTHER GOVERNMENT SECURITIES – 86.6%			$	46,118
(Cost: $46,479)

2017 SEMIANNUAL REPORT 45

SCHEDULE OF INVESTMENTS IVY PICTET EMERGING MARKETS LOCAL CURRENCY DEBT FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (D) – 4.4%
J.M. Smucker Co. (The)
1.090%, 4–3–17	$	2,316	$	2,316
Master Note – 4.3%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
1.190%, 4–5–17 (E)		2,275		2,275

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations – 2.4%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate)
0.870%, 4–7–17 (E)	$	1,300	$	1,300
TOTAL SHORT-TERM SECURITIES – 11.1%			$	5,891
(Cost: $5,891)

	Value
TOTAL INVESTMENT SECURITIES – 97.7%	$	52,009
(Cost: $52,372)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 2.3%		1,251
NET ASSETS – 100.0%	$	53,260

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Principal and notional amounts are denominated in the indicated foreign currency, where applicable (ARS - Argentine Peso, BRL - Brazilian Real, CLP - Chilean Peso, COP - Columbian Peso, HUF - Hungarian Forint, IDR - Indonesian Rupiah, MXN - Mexican Peso, MYR - Malaysian Ringgit, PEN - Peruvian Neuvo Sol, PHP - Philippine Peso, PLN - Polish Zloty, RON - Romania Leu, RUB - Russian Ruble, SGD - Singapore Dollar, THB - Thai Baht, TRY - Turkish New Lira and ZAR - South African Rand).

(C) Zero coupon bond.

(D) Rate shown is the yield to maturity at March 31, 2017.

(E) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description.

The following over the counter credit default swaps – buy protection⁽¹⁾ were outstanding at March 31, 2017:

Referenced Obligation	Counterparty		(Pay) Fixed Rate			Maturity Date		Notional Amount(2)		Value			Unrealized Appreciation (Depreciation)
Republic of Korea		Citibank N.A.		(1.000	%)		12–20–21		73	$	—	*	$	—	*
Republic of Korea		Goldman Sachs International		(1.000	%)		12–20–21		148		—	*		—	*
Republic of Korea		Morgan Stanley & Co., Inc.		(1.000	%)		12–20–21		323		—	*		—	*
Republic of Turkey		Bank of America N.A.		(1.000	%)		12–20–21		200		(4	)		(4	)
Republic of Turkey		Barclays Capital, Inc.		(1.000	%)		12–20–21		400		(13	)		(13	)
Republic of Turkey		Citibank N.A.		(1.000	%)		12–20–21		200		(5	)		(5	)
Republic of Turkey		Deutsche Bank AG		(1.000	%)		12–20–21		100		(3	)		(3	)
Republic of Turkey		Goldman Sachs International		(1.000	%)		12–20–21		100		(2	)		(2	)
										$	(27	)	$	(27	)

(1) If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(2) The maximum potential amount the Fund could be required to receive as a buyer of credit protection if a credit event occurs as defined under the terms of the swap agreement.

46 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY PICTET EMERGING MARKETS LOCAL CURRENCY DEBT FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

The following forward foreign currency contracts were outstanding at March 31, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation			Unrealized Depreciation
Indian Rupee		10,600	U.S. Dollar		156	4–3–17	Barclays Capital, Inc.	$	—		$	8
U.S. Dollar		163	Indian Rupee		10,600	4–3–17	Barclays Capital, Inc.		—			—	*
Brazilian Real		1,324	U.S. Dollar		423	4–4–17	Barclays Capital, Inc.		—	*		—
U.S. Dollar		1,108	Brazilian Real		3,440	4–4–17	Barclays Capital, Inc.		—			9
South African Rand		20,159	U.S. Dollar		1,478	4–5–17	Barclays Capital, Inc.		—			24
U.S. Dollar		867	South African Rand		11,173	4–5–17	Barclays Capital, Inc.		—			35
Hungarian Forint		118,000	Euro		381	4–7–17	Barclays Capital, Inc.		—			2
Mexican Peso		14,107	U.S. Dollar		712	4–10–17	Barclays Capital, Inc.		—			41
U.S. Dollar		185	Mexican Peso		3,500	4–10–17	Barclays Capital, Inc.		2			—
Chilean Peso		320,372	U.S. Dollar		484	4–17–17	Barclays Capital, Inc.		—			1
U.S. Dollar		450	Colombian Peso		1,310,000	4–17–17	Barclays Capital, Inc.		5			—
U.S. Dollar		55	Turkish New Lira		210	4–17–17	Barclays Capital, Inc.		3			—
U.S. Dollar		433	Romanian Leu		1,822	4–19–17	Barclays Capital, Inc.		—			6
South Korean Won		183,000	U.S. Dollar		160	4–21–17	Barclays Capital, Inc.		—			3
U.S. Dollar		325	South Korean Won		367,000	4–21–17	Barclays Capital, Inc.		4			—
Hungarian Forint		63,000	U.S. Dollar		217	4–24–17	Barclays Capital, Inc.		—			1
U.S. Dollar		818	Hungarian Forint		236,246	4–24–17	Barclays Capital, Inc.		—			1
U.S. Dollar		342	Japanese Yen		38,000	4–24–17	Barclays Capital, Inc.		—			1
Chilean Peso		104,000	U.S. Dollar		160	4–28–17	Barclays Capital, Inc.		3			—
U.S. Dollar		430	Chilean Peso		284,000	4–28–17	Barclays Capital, Inc.		—			—	*
U.S. Dollar		48	Brazilian Real		150	5–3–17	Barclays Capital, Inc.		—			—	*
U.S. Dollar		162	Colombian Peso		480,000	5–24–17	Barclays Capital, Inc.		3			—
U.S. Dollar		165	Singapore Dollar		230	5–30–17	Barclays Capital, Inc.		—			—	*
U.S. Dollar		916	Peruvian New Sol		3,025	6–6–17	Barclays Capital, Inc.		10			—
U.S. Dollar		707	Indonesian Rupiah		9,538,032	6–9–17	Barclays Capital, Inc.		6			—
Russian Ruble		23,000	U.S. Dollar		383	6–16–17	Barclays Capital, Inc.		—			19
U.S. Dollar		1,165	Russian Ruble		69,665	6–16–17	Barclays Capital, Inc.		50			—
Polish Zloty		376	U.S. Dollar		95	6–20–17	Barclays Capital, Inc.		—	*		—
U.S. Dollar		497	Polish Zloty		1,953	6–20–17	Barclays Capital, Inc.		—			5
U.S. Dollar		328	Chilean Peso		218,000	6–22–17	Barclays Capital, Inc.		1			—
Thai Baht		20,142	U.S. Dollar		577	7–3–17	Barclays Capital, Inc.		—			9
U.S. Dollar		932	Philippine Peso		47,395	7–14–17	Barclays Capital, Inc.		6			—
South Korean Won		367,000	U.S. Dollar		325	7–17–17	Barclays Capital, Inc.		—			4
U.S. Dollar		384	Malaysian Ringgit		1,722	7–17–17	Barclays Capital, Inc.		1			—
U.S. Dollar		326	South Korean Won		367,000	7–17–17	Barclays Capital, Inc.		3			—
Indian Rupee		21,200	U.S. Dollar		326	4–3–17	Citibank N.A.		—	*		—
U.S. Dollar		317	Indian Rupee		21,200	4–3–17	Citibank N.A.		10			—
South African Rand		10,094	U.S. Dollar		772	4–5–17	Citibank N.A.		20			—
U.S. Dollar		2,023	South African Rand		26,867	4–5–17	Citibank N.A.		—			20
Indian Rupee		10,700	U.S. Dollar		158	4–10–17	Citibank N.A.		—			7
Mexican Peso		30,100	U.S. Dollar		1,523	4–10–17	Citibank N.A.		—			84
U.S. Dollar		160	Indian Rupee		10,700	4–10–17	Citibank N.A.		5			—
U.S. Dollar		1,144	Mexican Peso		21,800	4–10–17	Citibank N.A.		19			—
Turkish New Lira		410	U.S. Dollar		111	4–17–17	Citibank N.A.		—			1
U.S. Dollar		984	Colombian Peso		2,858,625	4–17–17	Citibank N.A.		9			—
U.S. Dollar		1,286	Turkish New Lira		4,957	4–17–17	Citibank N.A.		73			—
Romanian Leu		342	U.S. Dollar		80	4–19–17	Citibank N.A.		—			—	*
Singapore Dollar		460	U.S. Dollar		329	4–21–17	Citibank N.A.		—			—	*
South Korean Won		184,000	U.S. Dollar		161	4–21–17	Citibank N.A.		—			3
U.S. Dollar		324	Singapore Dollar		460	4–21–17	Citibank N.A.		5			—
Hungarian Forint		7,000	U.S. Dollar		24	4–24–17	Citibank N.A.		—	*		—

2017 SEMIANNUAL REPORT 47

SCHEDULE OF INVESTMENTS IVY PICTET EMERGING MARKETS LOCAL CURRENCY DEBT FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation			Unrealized Depreciation
U.S. Dollar		355	Hungarian Forint		102,450	4–24–17	Citibank N.A.	$	—		$	1
Philippine Peso		7,900	U.S. Dollar		156	5–8–17	Citibank N.A.		—			1
U.S. Dollar		158	Philippine Peso		7,900	5–8–17	Citibank N.A.		—			1
U.S. Dollar		486	Singapore Dollar		680	5–30–17	Citibank N.A.		1			—
U.S. Dollar		227	Chinese Yuan Renminbi		1,574	6–7–17	Citibank N.A.		—	*		—
Thai Baht		111,600	U.S. Dollar		3,132	6–20–17	Citibank N.A.		—			114
U.S. Dollar		163	Euro		151	6–20–17	Citibank N.A.		—			2
U.S. Dollar		626	Polish Zloty		2,517	6–20–17	Citibank N.A.		8			—
Indian Rupee		21,200	U.S. Dollar		313	7–14–17	Citibank N.A.		—			11
U.S. Dollar		294	Philippine Peso		14,900	7–14–17	Citibank N.A.		1			—
U.S. Dollar		182	Malaysian Ringgit		810	7–17–17	Citibank N.A.		—			—	*
Indian Rupee		10,600	U.S. Dollar		155	4–3–17	Credit Suisse International		—			8
U.S. Dollar		163	Indian Rupee		10,600	4–3–17	Credit Suisse International		—			—	*
Colombian Peso		430,000	U.S. Dollar		143	4–6–17	Credit Suisse International		—			6
U.S. Dollar		149	Colombian Peso		430,000	4–6–17	Credit Suisse International		1			—
Hungarian Forint		23,000	Euro		74	4–7–17	Credit Suisse International		—			—	*
Mexican Peso		4,545	U.S. Dollar		241	4–10–17	Credit Suisse International		—			2
U.S. Dollar		163	Mexican Peso		3,100	4–10–17	Credit Suisse International		2			—
Colombian Peso		1,010,000	U.S. Dollar		349	4–17–17	Credit Suisse International		—			2
U.S. Dollar		90	Colombian Peso		260,000	4–17–17	Credit Suisse International		—	*		—
U.S. Dollar		67	Turkish New Lira		260	4–17–17	Credit Suisse International		4			—
U.S. Dollar		687	Japanese Yen		76,000	4–24–17	Credit Suisse International		—			4
Chilean Peso		104,000	U.S. Dollar		160	4–28–17	Credit Suisse International		3			—
South Korean Won		185,000	U.S. Dollar		166	5–30–17	Credit Suisse International		—	*		—
Indonesian Rupiah		1,600,000	U.S. Dollar		119	6–9–17	Credit Suisse International		—			1
U.S. Dollar		74	Indonesian Rupiah		1,000,000	6–9–17	Credit Suisse International		1			—
Thai Baht		7,200	U.S. Dollar		206	6–20–17	Credit Suisse International		—			4
U.S. Dollar		70	Thai Baht		2,400	6–20–17	Credit Suisse International		—			—	*
U.S. Dollar		164	Chilean Peso		109,000	6–22–17	Credit Suisse International		1			—
Chinese Yuan Renminbi Offshore		2,200	U.S. Dollar		317	7–14–17	Credit Suisse International		—			—	*
Philippine Peso		10,100	U.S. Dollar		198	7–14–17	Credit Suisse International		—			2
U.S. Dollar		137	South African Rand		1,794	4–5–17	Deutsche Bank AG		—			3
U.S. Dollar		150	Turkish New Lira		567	4–17–17	Deutsche Bank AG		6			—
South Korean Won		185,000	U.S. Dollar		166	6–5–17	Deutsche Bank AG		—			—	*
Euro		188	Polish Zloty		800	6–20–17	Deutsche Bank AG		—	*		—
U.S. Dollar		57	Thai Baht		2,000	6–20–17	Deutsche Bank AG		1			—
U.S. Dollar		331	South African Rand		4,300	4–5–17	Goldman Sachs International		—			11
Colombian Peso		470,000	U.S. Dollar		159	4–17–17	Goldman Sachs International		—			4
Turkish New Lira		1,256	U.S. Dollar		339	4–17–17	Goldman Sachs International		—			6
U.S. Dollar		52	Colombian Peso		150,000	4–17–17	Goldman Sachs International		—	*		—
U.S. Dollar		66	Turkish New Lira		258	4–17–17	Goldman Sachs International		5			—
Romanian Leu		570	U.S. Dollar		133	4–19–17	Goldman Sachs International		—			—	*
U.S. Dollar		584	Romanian Leu		2,477	4–19–17	Goldman Sachs International		—			3
Hungarian Forint		19,450	U.S. Dollar		67	4–24–17	Goldman Sachs International		—			1

48 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY PICTET EMERGING MARKETS LOCAL CURRENCY DEBT FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation			Unrealized Depreciation
South Korean Won		559,000	U.S. Dollar		498	5–30–17	Goldman Sachs International	$	—		$	3
U.S. Dollar		165	Singapore Dollar		230	6–5–17	Goldman Sachs International		—			—	*
U.S. Dollar		63	Malaysian Ringgit		280	7–17–17	Goldman Sachs International		—			—	*
Brazilian Real		4,656	U.S. Dollar		1,486	4–4–17	JPMorgan Securities LLC		—			2
U.S. Dollar		811	Brazilian Real		2,540	4–4–17	JPMorgan Securities LLC		—	*		—
South African Rand		2,062	U.S. Dollar		162	4–5–17	JPMorgan Securities LLC		9			—
Mexican Peso		3,100	U.S. Dollar		156	4–10–17	JPMorgan Securities LLC		—			10
U.S. Dollar		237	Mexican Peso		4,714	4–10–17	JPMorgan Securities LLC		15			—
U.S. Dollar		345	Japanese Yen		38,000	4–24–17	JPMorgan Securities LLC		—			3
U.S. Dollar		1,477	Brazilian Real		4,656	5–3–17	JPMorgan Securities LLC		—	*		—
Polish Zloty		757	U.S. Dollar		191	6–20–17	JPMorgan Securities LLC		—	*		—
U.S. Dollar		292	Polish Zloty		1,150	6–20–17	JPMorgan Securities LLC		—			3
								$	296		$	492

The following interest rate swap agreements were outstanding at March 31, 2017:

Counterparty	Pay/Receive Floating Rate		Floating Rate Index	Fixed Rate			Maturity Date		Notional Amount(b)		Value			Unrealized Appreciation
Deutsche Bank AG		Receive	6-Month Association of Banks in Singapore Swap Offer Rate		2.000	%		10/17/2021	SGD	444	$	—	*	$	2
JPMorgan Chase Bank N.A.		Pay	6-Month LIBOR		9.800	%		10/9/2022	$	233		32			40
Nomura Securities International, Inc.		Receive	6-Month Association of Banks in Singapore Swap Offer Rate		1.950	%		8/22/2026	SGD	256		9			9
											$	41		$	51

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of March 31, 2017. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1			Level 2		Level 3
Assets
Investments in Securities
Purchased Options	$	—	*	$	—	$	—
Other Government Securities		—			46,118		—
Short-Term Securities		—			5,891		—
Total	$	—		$	52,009	$	—
Forward Foreign Currency Contracts	$	—		$	296	$	—
Interest Rate Swaps	$	—		$	51	$	—
Liabilities
Over the Counter Credit Default Swaps	$	—		$	27	$	—
Forward Foreign Currency Contracts	$	—		$	492	$	—

During the period ended March 31, 2017, there were no transfers between Level 1 and 2.

2017 SEMIANNUAL REPORT 49

SCHEDULE OF INVESTMENTS IVY PICTET EMERGING MARKETS LOCAL CURRENCY DEBT FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

The following acronyms are used throughout this schedule:

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

OTC = Over the Counter

TB = Treasury Bill

Market Sector Diversification
(as a % of net assets)
Other Government Securities	86.6%
Other+	13.4%

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

See Accompanying Notes to Financial Statements.

50 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY PICTET TARGETED RETURN BOND FUND^(a)

ALL DATA IS AS OF MARCH 31, 2017 (UNAUDITED)

Asset Allocation

Purchased Options	0.1%
Bonds	95.7%
United States Government and Government Agency Obligations	48.1%
Corporate Debt Securities	28.7%
Other Government Securities	18.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	4.2%

Quality Weightings

Investment Grade	85.8%
AAA	17.8%
AA	44.0%
A	8.8%
BBB	15.2%
Non-Investment Grade	9.9%
BB	6.2%
B	1.9%
Non-rated	1.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Purchased Options	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.

Country Weightings

North America	62.5%
United States	57.6%
Other North America	4.9%
Europe	23.8%
Germany	5.7%
Netherlands	4.2%
Norway	3.7%
Other Europe	10.2%
Pacific Basin	5.1%
South America	2.0%
Other	1.7%
Bahamas/Caribbean	0.4%
Africa	0.2%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options	4.3%

Lipper Rankings

Category: Lipper Alternative Credit Focus Funds	Rank	Percentile
1 Year	266/289		92

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.

+ 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.

(a) Effective April 3, 2017, the name of Ivy Targeted Return Bond Fund has changed to Ivy Pictet Targeted Return Bond Fund.

2017 SEMIANNUAL REPORT 51

SCHEDULE OF INVESTMENTS IVY PICTET TARGETED RETURN BOND FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Value
Euro-Bobl 5-Year Bond March Futures,
Call EUR137.25, Expires 5-26-17 (A)		71	$	1
Euro-Bund 10-Year Bond June Futures,
Call EUR178.00, Expires 5-26-17 (A)		35		—	*
U.S. 10-Year Treasury Note June Futures,
Call $138.00, Expires 5-26-17		151		1
U.S. 2-Year Treasury Note June Futures:
Call $109.13, Expires 5-26-17		98		2
Call $109.50, Expires 5-26-17		71		—	*
U.S. 5-Year Treasury Note June Futures:
Call $123.00, Expires 5-26-17		87		1
Call $125.75, Expires 5-26-17		21		—	*
	Notional Amounts (Unrounded)
EUR versus GBP,
Put $0.82, Expires 11-30-17, OTC (Ctrpty: Deutsche Bank AG)		19,800,000		218
EUR versus JPY:
Call $128.30, Expires 11-29-17, OTC (Ctrpty: Goldman Sachs International)		6,926,000		60
Call $128.30, Expires 11-29-17, OTC (Ctrpty: Goldman Sachs International)		2,900,000		25
Markit iTraxx Crossover 26 5-Year Index:
Put EUR350.00, Expires 4-19-17, OTC (Ctrpty: Barclays Capital, Inc.) (A)		3,000,000		—	*
Put EUR350.00, Expires 4-19-17, OTC (Ctrpty: Barclays Capital, Inc.) (A)		4,600,000		—	*
USD versus TRY:
Put $3.67, Expires 4-18-17, OTC (Ctrpty: Bank of America N.A.)		3,679,000		53
Put $3.67, Expires 4-18-17, OTC (Ctrpty: Bank of America N.A.)		440,000		6
Call $4.17, Expires 4-18-17, OTC (Ctrpty: Bank of America N.A.)		2,419,000		—	*
TOTAL PURCHASED OPTIONS – 0.1%			$	367
(Cost: $659)

CORPORATE DEBT SECURITIES	Principal		Value
Consumer Discretionary
Auto Parts & Equipment – 0.3%
Johnson Controls International plc,
1.000%, 9-15-23 (A)	EUR	560	$	595
Automobile Manufacturers – 0.5%
Ford Motor Co.,
4.346%, 12-8-26	$	367		374
Volkswagen Group of America, Inc.,
1.650%, 5-22-18 (B)		200		199
Volkswagen International Finance N.V.,
3.500%, 12-29-49 (A)	EUR	400		403
				976
Cable & Satellite – 0.6%
Comcast Corp. (GTD by Comcast Cable Communications and NBCUniversal),
3.300%, 2-1-27	$	1,135		1,123
DISH DBS Corp.,
5.000%, 3-15-23		400		402
				1,525
Department Stores – 0.1%
Agrokor d.d.,
9.875%, 5-1-19 (A)	EUR	500		203
Hotels, Resorts & Cruise Lines – 0.1%
Priceline Group, Inc. (The),
1.800%, 3-3-27 (A)		250		263
Textiles – 0.2%
Levi Strauss & Co.,
3.375%, 3-15-27 (A)(B)		300		321
Tires & Rubber – 0.2%
Goodyear Tire & Rubber Co. (The),
4.875%, 3-15-27	$	380		380
Total Consumer Discretionary – 2.0%				4,263
Consumer Staples
Brewers – 0.7%
Anheuser-Busch InBev S.A./N.V.:
2.650%, 2-1-21		650		655
3.300%, 2-1-23		830		844
				1,499
Packaged Foods & Meats – 0.8%
Kraft Heinz Foods Co.,
4.375%, 6-1-46		350		327
Mondelez International Holdings Netherlands B.V.,
2.000%, 10-28-21 (B)		1,344		1,294
				1,621
Total Consumer Staples – 1.5%				3,120

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Energy
Integrated Oil & Gas – 1.8%
Nexen Energy ULC,
6.400%, 5-15-37	$	480	$	595
OMV AG,
5.250%, 12-29-49 (A)	EUR	400		469
Pemex Project Funding Master Trust (GTD by Petroleos Mexicanos),
6.625%, 6-15-35	$	695		720
Petroleos Mexicanos S.A. de C.V.,
2.750%, 4-21-27 (A)	EUR	715		675
Raizen Fuels Finance Ltd.,
5.300%, 1-20-27 (B)	$	535		542
Total S.A.,
2.250%, 12-29-49 (A)	EUR	700		749
				3,750
Oil & Gas Exploration & Production – 0.1%
ONGC Videsh Vankorneft Pte. Ltd. (GTD by Oil and Natural Gas Corp. Ltd.),
3.750%, 7-27-26	$	280		274
Oil & Gas Storage & Transportation – 0.8%
Access Midstream Partners L.P.,
4.875%, 5-15-23		400		412
Kunlun Energy Co. Ltd.,
3.750%, 5-13-25		450		454
MPLX L.P.,
4.125%, 3-1-27		487		483
TransCanada PipeLines Ltd.,
5.300%, 3-15-77		417		413
				1,762
Total Energy – 2.7%				5,786
Financials
Diversified Banks – 6.8%
Aareal Bank AG,
1.875%, 4-1-19		500		498
ABN AMRO Bank N.V.,
2.875%, 1-18-28 (A)	EUR	200		227
Allied Irish Banks plc,
7.375%, 12-29-49 (A)		400		452
Banco Bilbao Vizcaya Argentaria S.A.,
6.750%, 12-29-49 (A)		400		427
Bank of Communications Co. Ltd.,
3.625%, 10-3-26 (A)		640		701
Bankia S.A.,
4.000%, 5-22-24 (A)		400		441
Barclays plc,
2.625%, 11-11-25 (A)		470		506
Canadian Imperial Bank of Commerce,
2.250%, 7-21-20	$	550		551
Coventry Building Society,
6.375%, 12-29-49 (A)	GBP	400		491
CYBG plc,
5.000%, 2-9-26 (A)		300		370

52 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY PICTET TARGETED RETURN BOND FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Banks (Continued)
Dexia Credit Local S.A.,
1.875%, 9-15-21 (B)	$	429	$	414
DNB Boligkreditt A.S.:
1.450%, 3-21-18		1,000		997
2.500%, 3-28-22 (B)		518		517
Egyptian Government Treasury Bills:
0.000%, 3-8-18 (A)(C)	EGP	4,425		208
0.000%, 3-22-18 (A)(C)		5,950		278
Erste Group Bank AG,
5.500%, 5-26-25	$	400		417
European Investment Bank,
1.250%, 12-16-19		158		156
HSBC Holdings plc,
4.041%, 3-13-28		245		248
Ibercaja Banco S.A.,
5.000%, 7-28-25 (A)	EUR	400		427
ING Groep N.V.,
3.150%, 3-29-22	$	442		443
Intesa Sanpaolo S.p.A.,
6.625%, 9-13-23 (A)	EUR	470		593
National Bank of Canada,
1.400%, 4-20-18	$	600		599
Royal Bank of Canada,
2.750%, 2-1-22		744		751
Skandinaviska Enskilda Banken AB,
5.750%, 11-29-49		400		406
SNS Bank N.V.,
3.750%, 11-5-25 (A)	EUR	490		550
Standard Chartered plc,
4.000%, 10-21-25 (A)		380		430
Swedbank Hypotek AB,
1.375%, 3-28-18	$	700		699
Wells Fargo & Co.,
3.069%, 1-24-23		837		841
Westpac Banking Corp.,
2.250%, 11-9-20		1,000		999
				14,637
Investment Banking & Brokerage – 1.3%
Credit Suisse Group AG,
3.574%, 1-9-23 (B)		661		660
Goldman Sachs Group, Inc. (The) (3-Month U.S. LIBOR plus 117 bps),
2.209%, 11-15-21 (D)		980		991
Morgan Stanley (3-Month U.S. LIBOR plus 140 bps),
2.443%, 10-24-23 (D)		1,083		1,106
				2,757
Life & Health Insurance – 1.2%
Achmea B.V.,
4.250%, 12-29-49 (A)	EUR	260		265
China Life Insurance Co. Ltd.,
4.000%, 7-3-75	$	470		472
CNP Assurances,
4.500%, 6-10-47 (A)	EUR	300		334
Credit Agricole Assurances S.A.,
4.750%, 9-27-48 (A)		400		446
Metropolitan Life Global Funding I,
3.450%, 12-18-26 (B)	$	500		504

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Life & Health Insurance (Continued)
NN Group N.V.,
4.625%, 4-8-44 (A)	EUR	400	$	457
				2,478
Multi-Line Insurance – 0.7%
American International Group, Inc.,
2.300%, 7-16-19	$	430		432
ASR Nederland N.V.,
5.125%, 9-29-45 (A)	EUR	400		480
Aviva plc,
3.375%, 12-4-45 (A)		462		495
				1,407
Other Diversified Financial Services – 0.7%
HBOS Capital Funding L.P.,
6.461%, 11-29-49 (A)	GBP	50		66
KBC Bank N.V.,
8.000%, 1-25-23	$	600		628
KBC Groep N.V.,
5.625%, 3-29-49 (A)	EUR	400		434
Nykredit Realkredit A.S.,
4.000%, 6-3-36 (A)		400		448
				1,576
Specialized Finance – 3.1%
Japan Finance Organization for Municipalities,
2.125%, 10-25-23 (B)	$	340		325
John Deere Capital Corp.:
1.250%, 10-9-19		541		533
2.650%, 1-6-22		354		355
Kommunalbanken A.S.,
1.500%, 8-31-21 (B)		600		585
OI European Group B.V.,
3.125%, 11-15-24 (A)(B)	EUR	533		567
Realkredit Danmark A.S.,
1.000%, 4-1-19 (A)	DKK	8,200		1,207
Siemens Financieringsmaatschappij N.V.:
2.200%, 3-16-20 (B)	$	900		904
4.200%, 3-16-47 (B)		900		913
Swedish Export Credit Corp.,
1.875%, 6-23-20		200		199
Vonovia Finance B.V.:
4.000%, 12-29-49 (A)	EUR	200		225
4.625%, 4-8-74 (A)		600		675
WPC Eurobond B.V. (GTD by W.P. Carey, Inc.),
2.250%, 7-19-24 (A)		392		427
				6,915
Total Financials – 13.8%				29,770
Health Care
Biotechnology – 0.2%
Amgen, Inc.,
4.400%, 5-1-45	$	410		398
Pharmaceuticals – 0.7%
Pfizer, Inc.,
1.700%, 12-15-19		424		424

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Pharmaceuticals (Continued)
Walgreens Boots Alliance, Inc.:
3.450%, 6-1-26	$	500	$	487
2.125%, 11-20-26 (A)	EUR	500		549
				1,460
Total Health Care – 0.9%				1,858
Industrials
Air Freight & Logistics – 0.4%
A.P. Moller – Maersk A/S,
4.000%, 4–4–25 (A)	GBP	400		533
Fedex Corp.,
1.000%, 1–11–23 (A)	EUR	320		344
				877
Environmental & Facilities Services – 0.3%
Veolia Environnement S.A.,
6.125%, 10–29–37 (A)	GBP	350		646
Industrial Conglomerates – 0.3%
General Electric Co.,
4.625%, 1–30–43	$	400		401
Thyssenkrupp AG,
3.125%, 10–25–19 (A)	EUR	300		337
				738
Industrial Machinery – 0.1%
Parker Hannifin Corp.:
1.125%, 3–1–25 (A)(B)		244		261
4.100%, 3–1–47 (B)	$	34		34
				295
Marine Ports & Services – 0.9%
CCCI Treasure Ltd. (GTD by China Communications Construction Co. Ltd.),
3.500%, 12–29–49		565		569
DP World Ltd.,
6.850%, 7–2–37		920		1,061
				1,630
Total Industrials – 2.0%				4,186
Information Technology
Communications Equipment – 0.2%
Cisco Systems, Inc.,
2.200%, 2–28–21		500		500
IT Consulting & Other Services – 0.1%
International Business Machines Corp.,
3.300%, 1–27–27		147		148
Semiconductors – 0.4%
NXP B.V. and NXP Funding LLC,
3.875%, 9–1–22 (B)		400		409
STATS ChipPAC Ltd.,
8.500%, 11–24–20		400		432
				841

2017 SEMIANNUAL REPORT 53

SCHEDULE OF INVESTMENTS IVY PICTET TARGETED RETURN BOND FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Systems Software – 0.4%
Microsoft Corp.,
4.250%, 2–6–47	$	825	$	845
Technology Hardware, Storage & Peripherals – 0.4%
Hewlett Packard Enterprise Co.:
4.900%, 10–15–25		490		509
6.350%, 10–15–45		400		412
				921
Total Information Technology – 1.5%				3,255
Materials
Aluminum – 0.2%
Nemak S.A.B. de C.V.,
3.250%, 3–15–24 (A)(B)	EUR	322		345
Diversified Chemicals – 0.2%
Dow Chemical Co. (The),
4.375%, 11–15–42	$	410		405
Diversified Metals & Mining – 0.2%
BHP Billiton Finance Ltd.,
4.750%, 4–22–76 (A)	EUR	190		223
BHP Billiton Finance USA Ltd.,
6.250%, 10–19–75	$	200		216
				439
Metal & Glass Containers – 0.3%
Ball Corp.,
4.375%, 12–15–23 (A)	EUR	500		590
Paper Products – 0.1%
Domtar Corp.,
6.250%, 9–1–42	$	300		296
Specialty Chemicals – 0.3%
LYB International Finance II B.V.,
3.500%, 3–2–27		724		711
Total Materials – 1.3%				2,786
Real Estate
Office REITs – 0.1%
Inmobiliaria Colonial S.A.,
1.450%, 10–28–24 (A)	EUR	300		303
Real Estate Operating Companies – 0.8%
Grand City Properties S.A.,
3.750%, 12–29–49 (A)		600		657
Prologis L.P. (GTD by Prologis, Inc.),
1.375%, 5–13–21 (A)		963		1,061
				1,718
Total Real Estate – 0.9%				2,021
Telecommunication Services
Alternative Carriers – 0.2%
Telefonica Europe B.V. (GTD by Telefonica S.A.),
5.875%, 3–31–49 (A)		300		350

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Integrated Telecommunication Services – 0.6%
TDC A/S,
1.750%, 2–27–27 (A)	EUR	350	$	367
Verizon Communications, Inc.:
5.050%, 3–15–34	$	380		386
4.272%, 1–15–36		500		462
				1,215
Wireless Telecommunication Service – 0.6%
Bharti Airtel Ltd.,
4.375%, 6–10–25		920		919
Vodafone Group plc,
3.000%, 8–12–56 (A)	GBP	400		419
				1,338
Total Telecommunication Services – 1.4%				2,903
Utilities
Electric Utilities – 0.2%
Electricite de France S.A.,
4.250%, 12–29–49 (A)	EUR	400		438
Gas Utilities – 0.2%
Origin Energy Finance Ltd.,
4.000%, 9–16–74 (A)		430		466
Multi-Utilities – 0.3%
Dominion Resources, Inc.,
3.900%, 10–1–25	$	480		488
Total Utilities – 0.7%				1,392
TOTAL CORPORATE DEBT SECURITIES – 28.7%			$	61,340
(Cost: $61,454)
OTHER GOVERNMENT SECURITIES (E)
Argentina – 0.4%
Republic of Argentina:
7.500%, 4–22–26 (B)		150		159
7.820%, 12–31–33 (A)	EUR	667		752
				911
Bermuda – 0.4%
Government of Bermuda,
4.854%, 2–6–24	$	800		842
Brazil – 0.3%
Federative Republic of Brazil,
4.875%, 1–22–21		660		695
Cameroon – 0.2%
Republic of Cameroon,
9.500%, 11–19–25		410		464
Canada – 1.0%
Province of Alberta,
1.900%, 12–6–19		570		570

OTHER GOVERNMENT SECURITIES (E) (Continued)	Principal		Value
Canada (Continued)
Province of Ontario,
2.000%, 1–30–19	$	1,540	$	1,550
				2,120
Columbia – 0.6%
Republic of Colombia:
4.500%, 1–28–26		400		422
6.125%, 1–18–41		820		935
				1,357
Croatia – 0.1%
Republic of Croatia,
6.000%, 1–26–24		200		221
Germany – 5.3%
Bundesrepublik Deutschland:
3.500%, 7–4–19 (A)	EUR	2,800		3,276
2.000%, 1–4–22 (A)		1,000		1,193
1.000%, 8–15–24 (A)		320		368
0.500%, 2–15–26 (A)		2,300		2,527
0.000%, 8–15–26 (A)(C)		90		94
4.750%, 7–4–28 (A)		1,750		2,757
Germany Government Bond,
0.000%, 10–8–21 (A)(C)		860		937
				11,152
Indonesia – 1.1%
Indonesia Government Bond:
4.875%, 5–5–21	$	400		427
2.875%, 7–8–21 (A)	EUR	130		148
3.700%, 1–8–22 (B)	$	310		316
3.375%, 7–30–25 (A)	EUR	290		330
3.750%, 6–14–28 (A)		660		754
3.750%, 6–14–28 (A)(B)		280		320
8.500%, 10–12–35	$	100		144
				2,439
Ireland – 0.4%
Bank of Ireland,
7.375%, 12–29–49 (A)	EUR	400		457
Irish Government Bond,
2.400%, 5–15–30 (A)		300		357
				814
Italy – 0.4%
Italy Government Bond,
6.000%, 5–1–31 (A)		520		776
Japan – 0.1%
Japan Finance Organization for Municipalities,
2.125%, 3–6–19	$	290		289
Mexico – 1.6%
Mexican Bonos,
10.000%, 12–5–24 (A)	MXN	53,350		3,353

54 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY PICTET TARGETED RETURN BOND FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

OTHER GOVERNMENT SECURITIES (E) (Continued)	Principal		Value
Norway – 2.7%
Norway Government Bond:
3.000%, 3–14–24 (A)	NOK	23,700	$	3,072
1.500%, 2–19–26 (A)		22,500		2,617
				5,689
Panama – 0.7%
Republic of Panama:
4.000%, 9–22–24	$	410		428
9.375%, 4–1–29		780		1,143
				1,571
Peru – 0.7%
Republic of Peru:
7.350%, 7–21–25		540		699
8.750%, 11–21–33		490		741
				1,440
Poland – 0.1%
Republic of Poland,
5.000%, 3–23–22		200		220
South Africa – 0.2%
Republic of South Africa,
5.875%, 9–16–25		425		457
South Korea – 0.3%
Korea National Oil Corp.,
2.875%, 3–27–22 (B)		638		638
Spain – 0.1%
Telefonica Emisiones S.A.U.,
4.103%, 3–8–27		185		186
Sri Lanka – 0.4%
Republic of Sri Lanka,
6.850%, 11–3–25		920		952

OTHER GOVERNMENT SECURITIES (E) (Continued)	Principal		Value
Sweden – 1.1%
Kingdom of Sweden:
1.125%, 10–21–19 (B)	$	1,600	$	1,581
1.250%, 9–8–21 (B)		750		725
				2,306
Tunisia – 0.2%
Central Bank of Tunisia,
5.750%, 1–30–25		425		409
Turkey – 0.5%
Republic of Turkey,
3.250%, 3–23–23		360		330
Turkey Government Bond:
7.375%, 2–5–25		465		527
6.000%, 3–25–27		200		208
				1,065
TOTAL OTHER GOVERNMENT SECURITIES – 18.9%			$	40,366
(Cost: $40,425)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 48.1%
U.S. Treasury Bonds:
4.500%, 2–15–36 (F)		4,215		5,344
3.000%, 5–15–45		210		209
2.250%, 8–15–46		390		330
3.000%, 2–15–47		6,140		6,115
U.S. Treasury Notes:
4.500%, 5–15–17 (G)		15,880		15,950
1.000%, 11–30–18		13,500		13,453
1.375%, 1–31–20		650		648
1.375%, 2–29–20		480		478
1.500%, 1–31–22		310		304

UNITED STATES GOVERNMENT OBLIGATIONS (Continued)	Principal		Value
Treasury Obligations (Continued)
1.875%, 1–31–22	$	14,660	$	14,627
1.875%, 2–28–22		34,000		33,923
2.125%, 11–30–23		2,670		2,660
1.500%, 8–15–26		2,759		2,552
2.250%, 2–15–27		81		80
5.000%, 5–15–37		4,380		5,889
				102,562
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 48.1%			$	102,562
(Cost: $102,298)
SHORT-TERM SECURITIES
Master Note – 0.9%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.190%, 4–5–17 (H)		1,898		1,898
TOTAL SHORT-TERM SECURITIES – 0.9%			$	1,898
(Cost: $1,898)
TOTAL INVESTMENT SECURITIES – 96.7%			$	206,533
(Cost: $206,734)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 3.3%				6,970
NET ASSETS – 100.0%			$	213,503

Notes to Schedule of Investments

* Not shown due to rounding.

(A) Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, CAD - Canadian Dollar, CHF - Swiss Franc, CLP - Chilean Peso, COP - Columbian Peso, CZK - Czech Koruna, DKK - Danish Kroner, EUR - Euro, EGP - Egypt Pound, GBP - British Pound, JPY - Japanese Yen, KRW - South Korean Won, MXN - Mexican Peso, NOK - Norwegian Krone, NZD - New Zealand Dollar, PHP - Phillipine Peso, RON - Romanian Leu, SEK - Swedish Krona, TRY - Turkish New Lira and ZAR - South African Rand).

(B) Securities were purchased pursuant to an exemption from registration available under Rule 144A under the Securities Act of 1933 and may only be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2017 the total value of these securities amounted to $12,533 or 5.9% of net assets.

(C) Zero coupon bond.

(D) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

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

(F) All or a portion of securities with an aggregate value of $1,048 and cash of $380 are held in collateralized accounts for OTC derivatives collateral and is governed by International Swaps and Derivatives Association, Inc. Master Agreements.

2017 SEMIANNUAL REPORT 55

SCHEDULE OF INVESTMENTS IVY PICTET TARGETED RETURN BOND FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

(G) All or a portion of securities with an aggregate value of $844 have been pledged as collateral on open futures contracts.

(H) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2017. Date shown represents the date that the variable rate resets. Description of the reference rate and spread, if applicable, are included in the security description.

The following centrally cleared credit default swaps – buy protection⁽¹⁾ were outstanding at March 31, 2017:

Index	(Pay) Fixed Rate			Maturity Date		Notional Amount(2)		Value			Unrealized (Depreciation)
iTraxx Europe Senior Financials Index		1.000	%		12–20–21		5,700,000	$	(51	)	$	(18	)

The following centrally cleared credit default swaps – sold protection⁽³⁾ were outstanding at March 31, 2017:

Index	Receive Fixed Rate			Maturity Date		Implied Credit Spread at March 31, 2017(4)			Notional Amount(2)		Value		Unrealized Appreciation
5-Year Credit Derivatives Index - High Yield		(5.000	%)		6–20–22		4.827	%		17,700,000	$	1,272	$	163

The following over the counter credit default swaps – buy protection⁽¹⁾ were outstanding at March 31, 2017:

Referenced Obligation	Counterparty	(Pay) Fixed Rate			Maturity Date		Notional Amount(2)		Value			Unrealized Appreciation (Depreciation)
iTraxx Asia ex-Japan Investment Grade Index	JPMorgan Chase Bank N.A.		1.000	%		6–20–21		2,800,000		(32	)		(49	)
iTraxx Asia ex-Japan Investment Grade Index	Barclays Capital, Inc.		1.000	%		12–20–21		300,000		(2	)		(5	)
Republic of Korea	JPMorgan Chase Bank N.A.		1.000	%		12–20–21		3,100,000		(72	)		10
Verizon Communications, Inc.	Morgan Stanley & Co., Inc.		1.000	%		6–20–22		900,000		(5	)		—	*
									$	(111	)	$	(44	)

The following over the counter credit default swaps – sold protection⁽³⁾ were outstanding at March 31, 2017:

Referenced Obligation	Counterparty	Receive Fixed Rate			Maturity Date		Implied Credit Spread at March 31, 2017(4)			Notional Amount(2)		Value			Unrealized Appreciation
Glencore International AG	Morgan Stanley & Co., Inc.		(5.000	%)		12–20–21		2.475	%		400,000	$	67		$	7
Republic of Korea	Barclays Capital, Inc.		(1.000	%)		12–20–21		0.775	%		100,000		2			—	*
Republic of South Africa	Morgan Stanley & Co., Inc.		(1.000	%)		12–20–21		2.621	%		300,000		(13	)		7
												$	56		$	14

(1) If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(2) The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of the swap agreement.

(3) If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(4) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, sovereign issues, or an index as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

56 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY PICTET TARGETED RETURN BOND FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

The following forward foreign currency contracts were outstanding at March 31, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation			Unrealized Depreciation
Mexican Peso		25,200	U.S. Dollar		1,282	4–12–17	Bank of America N.A.	$	—		$	62
Chilean Peso		1,282,481	U.S. Dollar		1,903	4–4–17	Barclays Capital, Inc.		—			40
U.S. Dollar		2,048	Chilean Peso		1,356,482	4–4–17	Barclays Capital, Inc.		7			—
Australian Dollar		1,657	U.S. Dollar		1,255	4–6–17	Barclays Capital, Inc.		—			11
Euro		1,584	Swiss Franc		1,700	4–12–17	Barclays Capital, Inc.		7			—
Mexican Peso		38,960	U.S. Dollar		1,944	4–12–17	Barclays Capital, Inc.		—			135
British Pound		197	U.S. Dollar		242	4–13–17	Barclays Capital, Inc.		—			5
Czech Koruna		5,649	U.S. Dollar		222	4–13–17	Barclays Capital, Inc.		—			1
Turkish New Lira		2,368	U.S. Dollar		631	4–13–17	Barclays Capital, Inc.		—			19
U.S. Dollar		121	Canadian Dollar		162	4–13–17	Barclays Capital, Inc.		1			—
U.S. Dollar		548	Euro		517	4–13–17	Barclays Capital, Inc.		4			—
U.S. Dollar		744	Swedish Krona		6,694	4–13–17	Barclays Capital, Inc.		3			—
U.S. Dollar		453	Swiss Franc		456	4–13–17	Barclays Capital, Inc.		3			—
Philippine Peso		61,100	U.S. Dollar		1,221	5–8–17	Barclays Capital, Inc.		6			—
South Korean Won		5,655,685	U.S. Dollar		4,944	5–15–17	Barclays Capital, Inc.		—			119
Chilean Peso		1,356,500	U.S. Dollar		2,040	6–29–17	Barclays Capital, Inc.		—			8
Chilean Peso		734,000	U.S. Dollar		1,100	4–4–17	Citibank N.A.		—			13
U.S. Dollar		1,020	Chilean Peso		660,001	4–4–17	Citibank N.A.		—			20
Euro		1,966	British Pound		1,699	4–7–17	Citibank N.A.		32			—
Euro		600	Swiss Franc		644	4–12–17	Citibank N.A.		3			—
British Pound		1,000	U.S. Dollar		1,222	4–13–17	Citibank N.A.		—			31
Czech Koruna		16,243	U.S. Dollar		638	4–13–17	Citibank N.A.		—			4
Euro		1,010	Swedish Krona		9,620	4–13–17	Citibank N.A.		—			4
Euro		1,000	U.S. Dollar		1,066	4–13–17	Citibank N.A.		—			1
Romanian Leu		932	U.S. Dollar		218	4–13–17	Citibank N.A.		—			—	*
South African Rand		64,555	U.S. Dollar		5,026	4–13–17	Citibank N.A.		221			—
Turkish New Lira		5,504	U.S. Dollar		1,468	4–13–17	Citibank N.A.		—			42
U.S. Dollar		12,500	Euro		11,578	4–13–17	Citibank N.A.		—			142
U.S. Dollar		2,151	South African Rand		27,464	4–13–17	Citibank N.A.		—			107
Czech Koruna		31,400	U.S. Dollar		1,244	5–15–17	Citibank N.A.		—			3
Colombian Peso		15,487,318	U.S. Dollar		5,290	5–16–17	Citibank N.A.		—			66
U.S. Dollar		1,061	Colombian Peso		3,106,001	5–16–17	Citibank N.A.		13			—
Danish Kroner		12,500	U.S. Dollar		1,774	4–12–17	Deutsche Bank AG		—			19
Norwegian Krone		27,840	U.S. Dollar		3,284	4–12–17	Deutsche Bank AG		42			—
South African Rand		16,910	U.S. Dollar		1,281	4–13–17	Deutsche Bank AG		24			—
Romanian Leu		5,340	U.S. Dollar		1,257	5–25–17	Deutsche Bank AG		5			—
Canadian Dollar		1,679	U.S. Dollar		1,255	4–3–17	Goldman Sachs International		—			7
Swedish Krona		18,559	Norwegian Krone		17,855	4–12–17	Goldman Sachs International		8			—
British Pound		3,167	U.S. Dollar		3,889	4–13–17	Goldman Sachs International		—			81
Euro		1,002	Canadian Dollar		1,410	4–13–17	Goldman Sachs International		—			9
Euro		36,000	U.S. Dollar		37,992	4–13–17	Goldman Sachs International		—			429
Japanese Yen		149,421	U.S. Dollar		1,314	4–13–17	Goldman Sachs International		—			29
New Zealand Dollar		50	U.S. Dollar		35	4–13–17	Goldman Sachs International		—	*		—
Romanian Leu		2,683	U.S. Dollar		627	4–13–17	Goldman Sachs International		—			2
U.S. Dollar		62	Australian Dollar		81	4–13–17	Goldman Sachs International		—	*		—
U.S. Dollar		42	Canadian Dollar		56	4–13–17	Goldman Sachs International		—	*		—
U.S. Dollar		192	Euro		180	4–13–17	Goldman Sachs International		—	*		—
U.S. Dollar		260	Swedish Krona		2,328	4–13–17	Goldman Sachs International		—			—	*
U.S. Dollar		1,304	Swiss Franc		1,317	4–13–17	Goldman Sachs International		11			—
Canadian Dollar		1,660	U.S. Dollar		1,245	4–12–17	Morgan Stanley International		—			3
Norwegian Krone		21,200	U.S. Dollar		2,510	4–12–17	Morgan Stanley International		41			—
Euro		5,000	U.S. Dollar		5,287	4–13–17	Morgan Stanley International		—			49

2017 SEMIANNUAL REPORT 57

SCHEDULE OF INVESTMENTS IVY PICTET TARGETED RETURN BOND FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation			Unrealized Depreciation
Japanese Yen		330,750	U.S. Dollar		2,898	4–13–17	Morgan Stanley International	$	—		$	74
U.S. Dollar		22	Australian Dollar		28	4–13–17	Morgan Stanley International		—	*		—
Philippine Peso		42,073	U.S. Dollar		830	5–8–17	Morgan Stanley International		—			7
South Korean Won		3,845,475	U.S. Dollar		3,331	5–15–17	Morgan Stanley International		—			113
								$	431		$	1,655

The following futures contracts were outstanding at March 31, 2017 (contracts unrounded):

Description	Type	Expiration Date	Number of Contracts		Value			Unrealized Appreciation (Depreciation)
Euro Bobl 5-Year Bond	Short	6–12–17		71	$	(9,983)		$	(2	)
Euro-BTP Italian Government Bond	Short	6–12–17		26		(3,625)			(19	)
Euro-Bund 10-Year Bond	Short	6–12–17		11		(1,894)			7
Euro-Buxl 30-Year Bond	Short	6–12–17		28		(5,035	)		44
Euro-OAT France Government 10-Year Bond	Short	6–12–17		95		(14,902	)		2
Euro-Schatz 2-Year Bond	Long	6–12–17		6		718			—	*
U.S. 10-Year Treasury Note	Short	6–30–17		161		(20,055	)		(109	)
U.S. 10-Year Ultra Treasury Note	Short	6–30–17		10		(1,339	)		(13	)
U.S. Treasury Long Bond	Long	6–30–17		8		1,207			(1	)
United Kingdom Long Gilt	Short	6–30–17		14		(2,238	)		(37	)
U.S. 2-Year Treasury Note	Short	7–6–17		169		(36,580	)		(73	)
U.S. 5-Year Treasury Note	Short	7–6–17		108		(12,714	)		9
					$	(106,440	)	$	(192	)

The following written options were outstanding at March 31, 2017 (notional amounts and exercise prices unrounded):

Underlying Security

Counterparty, if OTC

Type

Notional Amounts

Expiration Month

Exercise Price

Premium Received

Value

USD versus TRY

Bank of America N.A.

Call

2,419,000

April 2017

$

4.17

$

35

$

—

*

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of March 31, 2017. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Purchased Options	$	5	$	362	$	—
Corporate Debt Securities		—		61,340		—
Other Government Securities		—		40,366		—
United States Government Obligations		—		102,562		—
Short-Term Securities		—		1,898		—
Total	$	5	$	206,528	$	—
Centrally Cleared Credit Default Swaps	$	—	$	163	$	—
Over the Counter Credit Default Swaps	$	—	$	24	$	—
Forward Foreign Currency Contracts	$	—	$	431	$	—
Futures Contracts	$	62	$	—	$	—
Liabilities
Centrally Cleared Credit Default Swaps	$	—	$	18	$	—
Over the Counter Credit Default Swaps	$	—	$	54	$	—
Forward Foreign Currency Contracts	$	—	$	1,655	$	—
Futures Contracts	$	254	$	—	$	—

During the period ended March 31, 2017, there were no transfers between Level 1 and 2.

58 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY PICTET TARGETED RETURN BOND FUND (in thousands)

MARCH 31, 2017 (UNAUDITED)

The following acronyms are used throughout this schedule:

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

OTC = Over the Counter

REIT = Real Estate Investment Trust

Country Diversification
(as a % of net assets)
United States	57.6%
Germany	5.7%
Netherlands	4.2%
Norway	3.7%
Canada	2.5%
Mexico	2.4%
Sweden	1.7%
United Kingdom	1.6%
France	1.5%
Denmark	1.1%
Indonesia	1.1%
Other Countries	12.6%
Other+	4.3%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 59

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF MARCH 31, 2017 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Apollo Multi- Asset Income Fund			Ivy Apollo Strategic Income Fund		Ivy California Municipal High Income Fund			Ivy IG International Small Cap Fund			Ivy Pictet Emerging Markets Local Currency Debt Fund(1)			Ivy Pictet Targeted Return Bond Fund(2)
ASSETS
Investments in unaffiliated securities at value+	$	572,384		$	441,498	$	13,677		$	28,707		$	52,009		$	206,533
Investments at Value		572,384			441,498		13,677			28,707			52,009			206,533
Cash		287			263		1			—			31			381
Cash denominated in foreign currencies at value+		168			324		—			925			199			4,887
Restricted cash		—			—		—			—			—			1,181
Investment securities sold receivable		2,466			1,677		—			406			193			1,801
Dividends and interest receivable		3,517			4,289		123			127			828			1,822
Capital shares sold receivable		1,243			2,049		—			91			174			488
Receivable from affiliates		—			187		—			—			175			217
Unrealized appreciation on forward foreign currency contracts		273			48		—			—			296			431
Unrealized appreciation on swap agreements		—			—		—			—			51			24
Variation margin receivable		—			—		—			—			—			52
Prepaid and other assets		64			63		6			23			59			58
Total Assets		580,402			450,398		13,807			30,279			54,015			217,875
LIABILITIES
Investment securities purchased payable		14,837			13,076		1,101			684			15			2,352
Capital shares redeemed payable		1,369			696		—			—			153			172
Distributions payable		—			—		5			—			—			—
Independent Trustees and Chief Compliance Officer fees payable		3			3		—	*		—	*		1			1
Overdraft due to custodian		—			—		—			11			—			—
Distribution and service fees payable		2			1		—	*		—	*		—	*		—	*
Shareholder servicing payable		105			72		1			3			10			24
Investment management fee payable		11			5		—			1			1			5
Accounting services fee payable		12			9		1			2			4			4
Unrealized depreciation on forward foreign currency contracts		266			9		—			—			492			1,655
Unrealized depreciation on swap agreements		—			—		—			—			27			54
Variation margin payable		—			—		—			—			—			96
Written options at value+		—			—		—			—			—			—	*
Other liabilities		165			64		9			—			52			9
Total Liabilities		16,770			13,935		1,117			701			755			4,372
Total Net Assets	$	563,632		$	436,463	$	12,690		$	29,578		$	53,260		$	213,503
NET ASSETS
Capital paid in (shares authorized — unlimited)	$	547,187		$	429,041	$	12,826		$	28,641		$	56,539		$	214,370
Undistributed (distributions in excess of) net investment income		1,470			793		1			63			(1,651	)		632
Accumulated net realized gain (loss)		(5,389	)		1,088		—			(189	)		(1,054	)		(47	)
Net unrealized appreciation (depreciation)		20,364			5,541		(137	)		1,063			(574	)		(1,452	)
Total Net Assets	$	563,632		$	436,463	$	12,690		$	29,578		$	53,260		$	213,503
CAPITAL SHARES OUTSTANDING:
Class A		13,134			11,945		666			935			1,326			1,972
Class C		1,862			794		112			101			232			394
Class E		N/A			N/A		N/A			N/A			200			N/A
Class I		37,588			28,662		411			1,732			3,521			10,340
Class N(3)		342			584		N/A			45			58			8,335
Class R		N/A			N/A		N/A			N/A			200			N/A
Class Y		462			786		100			45			317			350

See Accompanying Notes to Financial Statements.

60 SEMIANNUAL REPORT 2017

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF MARCH 31, 2017 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Apollo Multi- Asset Income Fund		Ivy Apollo Strategic Income Fund		Ivy California Municipal High Income Fund		Ivy IG International Small Cap Fund		Ivy Pictet Emerging Markets Local Currency Debt Fund(1)		Ivy Pictet Targeted Return Bond Fund(2)
NET ASSET VALUE PER SHARE:
Class A		$10.56		$10.20		$9.85		$10.35		$9.07		$9.98
Class C		$10.55		$10.20		$9.85		$10.34		$8.92		$9.95
Class E		N/A		N/A		N/A		N/A		$9.07		N/A
Class I		$10.56		$10.21		$9.85		$10.36		$9.12		$9.98
Class N(3)		$10.56		$10.21		N/A		$10.36		$9.13		$9.98
Class R		N/A		N/A		N/A		N/A		$9.02		N/A
Class Y		$10.56		$10.20		$9.85		$10.35		$9.08		$9.97
+COST
Investments in unaffiliated securities at cost	$	551,923	$	435,982	$	13,814	$	27,642	$	52,372	$	206,734
Cash denominated in foreign currencies at cost		168		325		—		924		198		4,880
Written options premiums received at cost		—		—		—		—		—		35

* Not shown due to rounding.

(1) Effective April 3, 2017, the Fund’s name changed from Ivy Emerging Markets Local Currency Debt Fund to Ivy Pictet Emerging Markets Local Currency Debt Fund.

(2) Effective April 3, 2017, the Fund’s name changed from Ivy Targeted Return Bond Fund to Ivy Pictet Targeted Return Bond Fund.

(3) Effective March 3, 2017 Class R6 has been renamed Class N.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 61

STATEMENTS OF OPERATIONS IVY FUNDS

FOR SIX MONTHS ENDED MARCH 31, 2017 (UNAUDITED)

(In thousands)	Ivy Apollo Multi-Asset Income Fund			Ivy Apollo Strategic Income Fund			Ivy California Municipal High Income Fund(1)			Ivy IG International Small Cap Fund(2)			Ivy Pictet Emerging Markets Local Currency Debt Fund(3)			Ivy Pictet Targeted Return Bond Fund(4)
INVESTMENT INCOME
Dividends from unaffiliated securities	$	4,381		$	111		$	—		$	150		$	—		$	—
Foreign dividend withholding tax		(223	)		—			—			(11	)		—			—
Interest and amortization from unaffiliated securities		6,589			8,909			141			3			1,475			1,271
Foreign interest withholding tax		—			—			—			—			(15	)		—	*
Total Investment Income		10,747			9,020			141			142			1,460			1,271
EXPENSES
Investment management fee		1,669			1,232			—			61			228			579
Distribution and service fees:
Class A		153			137			8			5			15			24
Class C		84			44			5			3			10			19
Class E		N/A			N/A			N/A			N/A			2			N/A
Class R		N/A			N/A			N/A			N/A			4			N/A
Class Y		6			8			1			—	*		5			5
Shareholder servicing:
Class A		135			79			1			1			12			10
Class C		16			8			—	*		—	*		—	*		1
Class E		N/A			N/A			N/A			N/A			—	*		N/A
Class I		274			190			2			5			25			77
Class N(5)		—	*		—	*		N/A			—	*		—	*		1
Class R		N/A			N/A			N/A			N/A			2			N/A
Class Y		4			5			1			—	*		3			3
Registration fees		71			65			2			1			42			49
Offering cost		9			9			—			—			—			41
Custodian fees		37			17			1			10			31			18
Independent Trustees and Chief Compliance Officer fees		9			8			—	*		—	*		1			2
Accounting services fee		69			56			3			7			22			19
Professional fees		30			32			11			—	*		42			24
Other		69			54			7			30			20			23
Total Expenses		2,635			1,944			42			123			464			895
Less:
Expenses in excess of limit		—			(187	)		—	*		(44	)		(175	)		(211	)
Total Net Expenses		2,635			1,757			42			79			289			684
Net Investment Income		8,112			7,263			99			63			1,171			587
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		(5,382	)		1,442			—			(189	)		(1,736	)		(3,291	)
Futures contracts		—			—			—			—			(5	)		1,031
Written options		—			—			—			—			5			541
Swap agreements		—			—			—			—			(111	)		403
Forward foreign currency contracts		1,924			141			—			—			(55	)		1,697
Foreign currency exchange transactions		68			(18	)		—			—	*		(49	)		1,866
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		11,254			(1,434	)		(137	)		1,065			184			(1,493	)
Futures contracts		—			—			—			—			—	*		(164	)
Written options		—			—			—			—			—			169
Swap agreements		—			—			—			—			3			38
Forward foreign currency contracts		(136	)		41			—			—			(199	)		(1,396	)
Foreign currency exchange transactions		(17	)		(13	)		—			(2	)		6			3
Net Realized and Unrealized Gain (Loss)		7,711			159			(137	)		874			(1,957	)		(596	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	15,823		$	7,422		$	(38	)	$	937		$	(786	)	$	(9	)

* Not shown due to rounding.

(1) For the period from October 3, 2016 (commencement of operations) to March 31, 2017.

(2) For the period from January 10, 2017 (commencement of operations) to March 31, 2017.

(3) Effective April 3, 2017, the Fund’s name changed from Ivy Emerging Markets Local Currency Debt Fund to Ivy Pictet Emerging Markets Local Currency Debt Fund.

(4) Effective April 3, 2017, the Fund’s name changed from Ivy Targeted Return Bond Fund to Ivy Pictet Targeted Return Bond Fund.

(5) Effective March 3, 2017 Class R6 has been renamed Class N.

See Accompanying Notes to Financial Statements.

62 SEMIANNUAL REPORT 2017

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Apollo Multi-Asset Income Fund						Ivy Apollo Strategic Income Fund						Ivy California Municipal High Income Fund
(In thousands)	Six months ended 3-31-17 (Unaudited)			Period from 10-1-15 (commencement of operations) to 9-30-16			Six months ended 3-31-17 (Unaudited)			Period from 10-1-15 (commencement of operations) to 9-30-16			Period from 10-3-16 (commencement of operations) to 3-31-17 (Unaudited)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	8,112		$	6,491		$	7,263		$	6,196		$	99
Net realized gain (loss) on investments		(3,390	)		(1,266	)		1,565			934			—
Net change in unrealized appreciation (depreciation)		11,101			9,263			(1,406	)		6,947			(137	)
Net Increase (Decrease) in Net Assets Resulting from Operations		15,823			14,488			7,422			14,077			(38	)
Distributions to Shareholders From:
Net investment income:
Class A		(1,948	)		(2,829	)		(2,165	)		(3,125	)		(53	)
Class C		(213	)		(154	)		(146	)		(124	)		(5	)
Class I		(5,834	)		(2,005	)		(4,883	)		(1,752	)		(32	)
Class N(1)		(66	)		(73	)		(125	)		(155	)		N/A
Class Y		(72	)		(81	)		(135	)		(116	)		(8	)
Net realized gains:
Class A		(175	)		(6	)		(451	)		—			—
Class C		(23	)		—	*		(38	)		—			—
Class I		(463	)		(1	)		(906	)		—			—
Class N(1)		(6	)		—	*		(25	)		—			N/A
Class Y		(7	)		—	*		(28	)		—			—
Total Distributions to Shareholders		(8,807	)		(5,149	)		(8,902	)		(5,272	)		(98	)
Capital Share Transactions		185,378			361,899			139,048			290,090			12,826
Net Increase in Net Assets		192,394			371,238			137,568			298,895			12,690
Net Assets, Beginning of Period		371,238			—			298,895			—			—
Net Assets, End of Period	$	563,632		$	371,238		$	436,463		$	298,895			12,690
Undistributed net investment income	$	1,470		$	1,423		$	793		$	1,002		$	1

* Not shown due to rounding.

(1) Effective March 3, 2017 Class R6 has been renamed Class N.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 63

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy IG International Small Cap Fund			Ivy Pictet Emerging Markets Local Currency Debt Fund(1)
(In thousands)	Period from 1-10-17 (commencement of operations) to 3-31-17 (Unaudited)			Six months ended 3-31-17 (Unaudited)			Year ended 9-30-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	63		$	1,171		$	1,714
Net realized loss on investments		(189	)		(1,951	)		(3,294	)
Net change in unrealized appreciation (depreciation)		1,063			(6	)		6,837
Net Increase (Decrease) in Net Assets Resulting from Operations		937			(786	)		5,257
Distributions to Shareholders From:
Net investment income:
Class A		—			—			—
Class C		—			—			—
Class E		N/A			—			—
Class I		—			—			—
Class N(2)		—			—			—
Class R		N/A			—			—
Class Y		—			—			—
Net realized gains:
Class A		—			—			—
Class C		—			—			—
Class E		N/A			—			—
Class I		—			—			—
Class N(2)		—			—			—
Class R		N/A			—			—
Class Y		—			—			—
Total Distributions to Shareholders		—			—			—
Capital Share Transactions		28,641			4,023			2,787
Net Increase in Net Assets		29,578			3,237			8,044
Net Assets, Beginning of Period		—			50,023			41,979
Net Assets, End of Period		29,578		$	53,260		$	50,023
Undistributed (distributions in excess of) net investment income	$	63		$	(1,651	)	$	(1,276	)

(1) Effective April 3, 2017, the Fund’s name changed from Ivy Emerging Markets Local Currency Debt Fund to Ivy Pictet Emerging Markets Local Currency Debt Fund.

(2) Effective March 3, 2017 Class R6 has been renamed Class N.

See Accompanying Notes to Financial Statements.

64 SEMIANNUAL REPORT 2017

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Pictet Targeted Return Bond Fund(1)
(In thousands)	Six months ended 3-31-17 (Unaudited)			Year ended 9-30-16
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	587		$	470
Net realized gain (loss) on investments		2,247			(103	)
Net change in unrealized appreciation (depreciation)		(2,843	)		1,390
Net Increase (Decrease) in Net Assets Resulting from Operations		(9	)		1,757
Distributions to Shareholders From:
Net investment income:
Class A		(241	)		—
Class C		(25	)		—
Class I		(1,270	)		—
Class N(2)		(34	)		—
Class Y		(46	)		—
Net realized gains:
Class A		(178	)		—
Class C		(35	)		—
Class I		(793	)		—
Class N(2)		(20	)		—
Class Y		(32	)		—
Total Distributions to Shareholders		(2,674	)		—
Capital Share Transactions		113,426			101,003
Net Increase in Net Assets		110,743			102,760
Net Assets, Beginning of Period		102,760			—
Net Assets, End of Period	$	213,503		$	102,760
Undistributed net investment income	$	632		$	306

(1) Effective April 3, 2017, the Fund’s name changed from Ivy Targeted Return Bond Fund to Ivy Pictet Targeted Return Bond Fund.

(2) Effective March 3, 2017 Class R6 has been renamed Class N.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 65

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY APOLLO MULTI-ASSET INCOME 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 3-31-2017 (unaudited)	$	10.45	$	0.17	$	0.12	$	0.29	$	(0.16	)	$	(0.02	)	$	(0.18	)
Period ended 9-30-2016(4)		10.00		0.37		0.31		0.68		(0.23	)		—	*		(0.23	)
Class C Shares
Six-month period ended 3-31-2017 (unaudited)		10.46		0.13		0.11		0.24		(0.13	)		(0.02	)		(0.15	)
Period ended 9-30-2016(4)		10.00		0.28		0.33		0.61		(0.15	)		—	*		(0.15	)
Class I Shares
Six-month period ended 3-31-2017 (unaudited)		10.46		0.18		0.12		0.30		(0.18	)		(0.02	)		(0.20	)
Period ended 9-30-2016(4)		10.00		0.39		0.32		0.71		(0.25	)		—	*		(0.25	)
Class N Shares(5)
Six-month period ended 3-31-2017 (unaudited)		10.46		0.20		0.11		0.31		(0.19	)		(0.02	)		(0.21	)
Period ended 9-30-2016(4)		10.00		0.38		0.33		0.71		(0.25	)		—	*		(0.25	)
Class Y Shares
Six-month period ended 3-31-2017 (unaudited)		10.45		0.18		0.12		0.30		(0.17	)		(0.02	)		(0.19	)
Period ended 9-30-2016(4)		10.00		0.34		0.34		0.68		(0.23	)		—	*		(0.23	)

* 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) For the period from October 1, 2015 (commencement of operations of the class) through September 30, 2016.

(5) Effective March 3, 2017 Class R6 has been renamed Class N.

(6) Annualized.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2016.

(8) Ratio of expenses to average net assets excluding offering cost was 1.25%.

(9) Ratio of expenses to average net assets excluding offering cost was 2.01%.

(10) Ratio of expenses to average net assets excluding offering cost was 0.93%.

(11) Ratio of expenses to average net assets excluding offering cost was 0.89%.

(12) Ratio of expenses to average net assets excluding offering cost was 1.20%.

66 SEMIANNUAL REPORT 2017

	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 3-31-2017 (unaudited)	$	10.56		2.81	%	$	139		1.30	%(6)		3.32	%(6)		—	%		—	%		43	%
Period ended 9-30-2016(4)		10.45		6.85			95		1.30	(6)(8)		3.69	(6)		1.41	(6)		3.58	(6)		63	(7)
Class C Shares
Six-month period ended 3-31-2017 (unaudited)		10.55		2.32			20		2.01	(6)		2.51	(6)		—			—			43
Period ended 9-30-2016(4)		10.46		6.14			14		2.06	(6)(9)		2.78	(6)		—			—			63	(7)
Class I Shares
Six-month period ended 3-31-2017 (unaudited)		10.56		2.88			396		0.99	(6)		3.47	(6)		—			—			43
Period ended 9-30-2016(4)		10.46		7.25			255		0.98	(6)(10)		3.80	(6)		—			—			63	(7)
Class N Shares(5)
Six-month period ended 3-31-2017 (unaudited)		10.56		2.97			4		0.84	(6)		3.79	(6)		—			—			43
Period ended 9-30-2016(4)		10.46		7.26			3		0.94	(6)(11)		3.73	(6)		—			—			63	(7)
Class Y Shares
Six-month period ended 3-31-2017 (unaudited)		10.56		2.83			5		1.24	(6)		3.38	(6)		—			—			43
Period ended 9-30-2016(4)		10.45		6.90			4		1.25	(6)(12)		3.31	(6)		1.33	(6)		3.23	(6)		63	(7)

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 67

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY APOLLO STRATEGIC 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 3-31-2017 (unaudited)	$	10.26	$	0.19	$	(0.01	)	$	0.18	$	(0.20	)	$	(0.04	)	$	(0.24	)
Period ended 9-30-2016(4)		10.00		0.34		0.18			0.52		(0.26	)		—			(0.26	)
Class C Shares
Six-month period ended 3-31-2017 (unaudited)		10.26		0.16		(0.01	)		0.15		(0.17	)		(0.04	)		(0.21	)
Period ended 9-30-2016(4)		10.00		0.27		0.19			0.46		(0.20	)		—			(0.20	)
Class I Shares
Six-month period ended 3-31-2017 (unaudited)		10.27		0.21		(0.01	)		0.20		(0.22	)		(0.04	)		(0.26	)
Period ended 9-30-2016(4)		10.00		0.39		0.17			0.56		(0.29	)		—			(0.29	)
Class N Shares(5)
Six-month period ended 3-31-2017 (unaudited)		10.27		0.21		(0.01	)		0.20		(0.22	)		(0.04	)		(0.26	)
Period ended 9-30-2016(4)		10.00		0.34		0.22			0.56		(0.29	)		—			(0.29	)
Class Y Shares
Six-month period ended 3-31-2017 (unaudited)		10.26		0.20		(0.01	)		0.19		(0.21	)		(0.04	)		(0.25	)
Period ended 9-30-2016(4)		10.00		0.33		0.20			0.53		(0.27	)		—			(0.27	)

(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) For the period from October 1, 2015 (commencement of operations of the class) through September 30, 2016.

(5) Effective March 3, 2017 Class R6 has been renamed Class N.

(6) Annualized.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended September 30, 2016.

(8) Ratio of expenses to average net assets excluding offering cost was 1.10%.

(9) Ratio of expenses to average net assets excluding offering cost was 1.79%.

(10) Ratio of expenses to average net assets excluding offering cost was 0.80%.

(11) Ratio of expenses to average net assets excluding offering cost was 0.79%.

(12) Ratio of expenses to average net assets excluding offering cost was 1.05%.

68 SEMIANNUAL REPORT 2017

	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 3-31-2017 (unaudited)	$	10.20		1.86	%	$	122		1.15	%(6)		3.82	%(6)		1.21	%(6)		3.76	%(6)		17	%
Period ended 9-30-2016(4)		10.26		5.35			95		1.15	(6)(8)		3.36	(6)		1.26	(6)		3.25	(6)		42	(7)
Class C Shares
Six-month period ended 3-31-2017 (unaudited)		10.20		1.51			8		1.85	(6)		3.13	(6)		1.99	(6)		2.99	(6)		17
Period ended 9-30-2016(4)		10.26		4.66			8		1.84	(6)(9)		2.71	(6)		1.96	(6)		2.59	(6)		42	(7)
Class I Shares
Six-month period ended 3-31-2017 (unaudited)		10.21		2.01			292		0.85	(6)		4.11	(6)		0.97	(6)		3.99	(6)		17
Period ended 9-30-2016(4)		10.27		5.75			184		0.85	(6)(10)		3.91	(6)		0.98	(6)		3.78	(6)		42	(7)
Class N Shares(5)
Six-month period ended 3-31-2017 (unaudited)		10.21		2.02			6		0.82	(6)		4.16	(6)		—			—			17
Period ended 9-30-2016(4)		10.27		5.75			6		0.84	(6)(11)		3.44	(6)		—			—			42	(7)
Class Y Shares
Six-month period ended 3-31-2017 (unaudited)		10.20		1.89			8		1.10	(6)		3.87	(6)		1.21	(6)		3.76	(6)		17
Period ended 9-30-2016(4)		10.26		5.39			6		1.10	(6)(12)		3.31	(6)		1.23	(6)		3.18	(6)		42	(7)

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 69

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY CALIFORNIA MUNICIPAL HIGH INCOME FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Loss on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Period ended 3-31-2017(4)	$	10.00	$	0.09	$	(0.15	)	$	(0.06	)	$	(0.09	)	$	—	$	(0.09	)
Class C Shares
Period ended 3-31-2017(4)		10.00		0.05		(0.15	)		(0.10	)		(0.05	)		—		(0.05	)
Class I Shares
Period ended 3-31-2017(4)		10.00		0.09		(0.15	)		(0.06	)		(0.09	)		—		(0.09	)
Class Y Shares
Period ended 3-31-2017(4)		10.00		0.08		(0.15	)		(0.07	)		(0.08	)		—		(0.08	)

(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) For the period from October 3, 2016 (commencement of operations of the class) through March 31, 2017.

(5) Annualized.

(6) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the period ended March 31, 2017.

70 SEMIANNUAL REPORT 2017

	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
Period ended 3-31-2017(4)	$	9.85		-0.74	%	$	7		0.75	%(5)		1.81	%(5)		—	%		—	%		0	%(6)
Class C Shares
Period ended 3-31-2017(4)		9.85		-1.12			1		1.52	(5)		1.01	(5)		—			—			0	(6)
Class I Shares
Period ended 3-31-2017(4)		9.85		-0.65			4		0.57	(5)		1.99	(5)		—			—			0	(6)
Class Y Shares
Period ended 3-31-2017(4)		9.85		-0.74			1		0.75	(5)		1.75	(5)		0.78	(5)		1.72	(5)		0	(6)

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 71

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY IG INTERNATIONAL SMALL CAP 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
Period ended 3-31-2017(4)	$	10.00	$	0.02		$	0.33	$	0.35	$	—	$	—	$	—
Class C Shares
Period ended 3-31-2017(4)		10.00		0.00	*		0.34		0.34		—		—		—
Class I Shares
Period ended 3-31-2017(4)		10.00		0.03			0.33		0.36		—		—		—
Class N Shares
Period ended 3-31-2017(4)		10.00		0.02			0.34		0.36		—		—		—
Class Y Shares
Period ended 3-31-2017(4)		10.00		0.02			0.33		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) For the period from October 3, 2016 (commencement of operations of the class) through March 31, 2017.

(5) Annualized.

(6) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the period ended March 31, 2017.

72 SEMIANNUAL REPORT 2017

	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 (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Period ended 3-31-2017(4)	$	10.35		3.50	%	$	11			1.43	%(5)		0.84	%(5)		2.05	%(5)		0.22	%(5)		13	%(6)
Class C Shares
Period ended 3-31-2017(4)		10.34		3.30			1			2.16	(5)		0.07	(5)		2.78	(5)		-0.55	(5)		13	(6)
Class I Shares
Period ended 3-31-2017(4)		10.36		3.50			18			1.14	(5)		1.20	(5)		1.92	(5)		0.42	(5)		13	(6)
Class N Shares
Period ended 3-31-2017(4)		10.36		3.50			—	*		1.14	(5)		1.08	(5)		1.76	(5)		0.46	(5)		13	(6)
Class Y Shares
Period ended 3-31-2017(4)		10.35		3.50			—	*		1.43	(5)		0.80	(5)		2.16	(5)		0.07	(5)		13	(6)

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 73

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY PICTET EMERGING MARKETS LOCAL CURRENCY DEBT 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 3-31-2017 (unaudited)	$	9.21	$	0.19	$	(0.33	)	$	(0.14	)	$	—		$	—		$	—
Year ended 9-30-2016		8.11		0.33		0.77			1.10			—			—			—
Year ended 9-30-2015		9.76		0.34		(1.83	)		(1.49	)		(0.16	)		—	*		(0.16	)
Period ended 9-30-2014(5)		10.00		0.16		(0.40	)		(0.24	)		—			—			—
Class C Shares
Six-month period ended 3-31-2017 (unaudited)		9.09		0.16		(0.33	)		(0.17	)		—			—			—
Year ended 9-30-2016		8.06		0.28		0.75			1.03			—			—			—
Year ended 9-30-2015		9.73		0.27		(1.83	)		(1.56	)		(0.11	)		—	*		(0.11	)
Period ended 9-30-2014(5)		10.00		0.13		(0.40	)		(0.27	)		—			—			—
Class E Shares
Six-month period ended 3-31-2017 (unaudited)		9.21		0.20		(0.34	)		(0.14	)		—			—			—
Year ended 9-30-2016		8.11		0.35		0.75			1.10			—			—			—
Year ended 9-30-2015		9.76		0.33		(1.82	)		(1.49	)		(0.16	)		—	*		(0.16	)
Period ended 9-30-2014(5)		10.00		0.16		(0.40	)		(0.24	)		—			—			—
Class I Shares
Six-month period ended 3-31-2017 (unaudited)		9.25		0.22		(0.35	)		(0.13	)		—			—			—
Year ended 9-30-2016		8.12		0.39		0.74			1.13			—			—			—
Year ended 9-30-2015		9.77		0.36		(1.84	)		(1.48	)		(0.17	)		—	*		(0.17	)
Period ended 9-30-2014(5)		10.00		0.17		(0.40	)		(0.23	)		—			—			—
Class N Shares)(7)
Six-month period ended 3-31-2017 (unaudited)		9.25		0.21		(0.33	)		(0.12	)		—			—			—
Year ended 9-30-2016		8.12		0.38		0.75			1.13			—			—			—
Period ended 9-30-2015(6)		9.08		0.23		(1.19	)		(0.96	)		—			—			—
Class R Shares
Six-month period ended 3-31-2017 (unaudited)		9.17		0.19		(0.34	)		(0.15	)		—			—			—
Year ended 9-30-2016		8.09		0.32		0.76			1.08			—			—			—
Year ended 9-30-2015		9.74		0.31		(1.82	)		(1.51	)		(0.14	)		—	*		(0.14	)
Period ended 9-30-2014(5)		10.00		0.15		(0.41	)		(0.26	)		—			—			—
Class Y Shares
Six-month period ended 3-31-2017 (unaudited)		9.21		0.20		(0.33	)		(0.13	)		—			—			—
Year ended 9-30-2016		8.11		0.35		0.75			1.10			—			—			—
Year ended 9-30-2015		9.76		0.34		(1.83	)		(1.49	)		(0.16	)		—	*		(0.16	)
Period ended 9-30-2014(5)		10.00		0.16		(0.40	)		(0.24	)		—			—			—

* 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 April 30, 2014 (commencement of operations of the class) through September 30, 2014.

(6) For the period from January 30, 2015 (commencement of operations of the class) through September 30, 2015.

(7) Effective March 3, 2017 Class R6 has been renamed Class N.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended September 30, 2014.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended September 30, 2015.

(10) Ratio of expenses to average net assets excluding offering cost was 2.00%.

(11) Ratio of expenses to average net assets excluding offering cost was 1.80%.

(12) Ratio of expenses to average net assets excluding offering cost was 2.50%.

(13) Ratio of expenses to average net assets excluding offering cost was 2.47%.

(14) Ratio of expenses to average net assets excluding offering cost was 1.72%.

(15) Ratio of expenses to average net assets excluding offering cost was 1.71%.

(16) Ratio of expenses to average net assets excluding offering cost was 1.62%.

(17) Ratio of expenses to average net assets excluding offering cost was 1.61%.

(18) Ratio of expenses to average net assets excluding offering cost was 2.33%.

(19) Ratio of expenses to average net assets excluding offering cost was 1.96%.

(20) Ratio of expenses to average net assets excluding offering cost was 1.47%.

(21) Ratio of expenses to average net assets excluding offering cost was 1.86%.

74 SEMIANNUAL REPORT 2017

	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 3-31-2017 (unaudited)	$	9.07		-1.52	%	$	12			1.25	%(4)		4.31	%(4)		2.02	%(4)		3.54	%(4)		32	%
Year ended 9-30-2016		9.21		13.56			12			1.25			3.90			2.03			3.12			74
Year ended 9-30-2015		8.11		-15.45			26			1.25			3.81			2.21	(10)		2.85			40
Period ended 9-30-2014(5)		9.76		-2.40			20			1.25	(4)		3.70	(4)		2.18	(4)(11)		2.77	(4)		18	(8)
Class C Shares
Six-month period ended 3-31-2017 (unaudited)		8.92		-1.87			2			2.00	(4)		3.74	(4)		2.56	(4)		3.18	(4)		32
Year ended 9-30-2016		9.09		12.78			2			2.00			3.27			2.50			2.77			74
Year ended 9-30-2015		8.06		-16.12			2			2.00			2.98			2.71	(12)		2.27			40
Period ended 9-30-2014 (5)		9.73		-2.70			2			2.00	(4)		2.95	(4)		2.85	(4)(13)		2.10	(4)		18	(8)
Class E Shares
Six-month period ended 3-31-2017 (unaudited)		9.07		-1.52			2			1.25	(4)		4.48	(4)		1.76	(4)		3.97	(4)		32
Year ended 9-30-2016		9.21		13.56			2			1.26			4.01			1.72			3.55			74
Year ended 9-30-2015		8.11		-15.45			2			1.26			3.72			1.93	(14)		3.05			40
Period ended 9-30-2014 (5)		9.76		-2.40			2			1.25	(4)		3.72	(4)		2.09	(4)(15)		2.88	(4)		18	(8)
Class I Shares
Six-month period ended 3-31-2017 (unaudited)		9.12		-1.41			31			1.00	(4)		4.87	(4)		1.69	(4)		4.18	(4)		32
Year ended 9-30-2016		9.25		13.92			26			1.00			4.42			1.62			3.80			74
Year ended 9-30-2015		8.12		-15.29			8			1.00			4.00			1.83	(16)		3.17			40
Period ended 9-30-2014 (5)		9.77		-2.30			8			1.00	(4)		3.97	(4)		1.99	(4)(17)		2.98	(4)		18	(8)
Class N Shares(7)
Six-month period ended 3-31-2017 (unaudited)		9.13		-1.30			1			1.00	(4)		4.67	(4)		1.52	(4)		4.15	(4)		32
Year ended 9-30-2016		9.25		13.92			1			1.00			4.35			1.47			3.88			74
Period ended 9-30-2015 (6)		8.12		-10.57			—	*		1.00	(4)		4.03	(4)		1.68	(4)(20)		3.35	(4)		40	(9)
Class R Shares
Six-month period ended 3-31-2017 (unaudited)		9.02		-1.64			2			1.50	(4)		4.22	(4)		2.26	(4)		3.46	(4)		32
Year ended 9-30-2016		9.17		13.35			2			1.50			3.77			2.21			3.06			74
Year ended 9-30-2015		8.09		-15.63			2			1.50			3.48			2.54	(18)		2.44			40
Period ended 9-30-2014 (5)		9.74		-2.60			2			1.50	(4)		3.47	(4)		2.59	(4)(19)		2.38	(4)		18	(8)
Class Y Shares
Six-month period ended 3-31-2017 (unaudited)		9.08		-1.41			3			1.25	(4)		4.45	(4)		1.92	(4)		3.78	(4)		32
Year ended 9-30-2016		9.21		13.56			5			1.25			4.06			1.86			3.45			74
Year ended 9-30-2015		8.11		-15.45			2			1.25			3.73			2.07	(21)		2.91			40
Period ended 9-30-2014 (5)		9.76		-2.40			3			1.25	(4)		3.72	(4)		2.24	(4)(21)		2.73	(4)		18	(8)

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 75

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY PICTET TARGETED RETURN 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 3-31-2017 (unaudited)	$	10.21	$	0.03		$	(0.04	)	$	(0.01	)	$	(0.13	)	$	(0.09	)	$	(0.22	)
Period ended 9-30-2016(5)		10.00		0.06			0.15			0.21			—			—			—
Class C Shares
Six-month period ended 3-31-2017 (unaudited)		10.16		0.00	*		(0.06	)		(0.06	)		(0.06	)		(0.09	)		(0.15	)
Period ended 9-30-2016(5)		10.00		0.01			0.15			0.16			—			—			—
Class I Shares
Six-month period ended 3-31-2017 (unaudited)		10.23		0.05			(0.06	)		(0.01	)		(0.15	)		(0.09	)		(0.24	)
Period ended 9-30-2016(5)		10.00		0.08			0.15			0.23			—			—			—
Class N Shares
Six-month period ended 3-31-2017 (unaudited)		10.24		0.06			(0.07	)		(0.01	)		(0.16	)		(0.09	)		(0.25	)
Period ended 9-30-2016(5)		10.00		0.09			0.15			0.24			—			—			—
Class Y Shares
Six-month period ended 3-31-2017 (unaudited)		10.22		0.03			(0.06	)		(0.03	)		(0.13	)		(0.09	)		(0.22	)
Period ended 9-30-2016(5)		10.00		0.06			0.16			0.22			—			—			—

* 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 January 4, 2016 (commencement of operations of the class) through September 30, 2016.

(6) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended September 30, 2016.

(7) Ratio of expenses to average net assets excluding offering costs was 1.19%.

(8) Ratio of expenses to average net assets excluding offering costs was 1.14%.

(9) Ratio of expenses to average net assets excluding offering costs was 1.85%.

(10) Ratio of expenses to average net assets excluding offering costs was 1.77%.

(11) Ratio of expenses to average net assets excluding offering costs was 0.94%.

(12) Ratio of expenses to average net assets excluding offering costs was 0.87%.

(13) Ratio of expenses to average net assets excluding offering costs was 0.81%.

(14) Ratio of expenses to average net assets excluding offering costs was 0.74%.

(15) Ratio of expenses to average net assets excluding offering costs was 1.19%.

(16) Ratio of expenses to average net assets excluding offering costs was 1.02%.

76 SEMIANNUAL REPORT 2017

	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 (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 3-31-2017 (unaudited)	$	9.98		-0.10	%	$	20		1.25	%(4)(7)		0.69	%(4)		1.54	%(4)		0.40	%(4)		106	%
Period ended 9-30-2016(5)		10.21		2.10			19		1.27	(4)(8)		0.88	(4)		1.55	(4)		0.60	(4)		90	(6)
Class C Shares
Six-month period ended 3-31-2017 (unaudited)		9.95		-0.54			4		1.91	(4)(9)		0.02	(4)		2.20	(4)		-0.27	(4)		106
Period ended 9-30-2016(5)		10.16		1.60			4		1.90	(4)(10)		0.15	(4)		2.18	(4)		-0.13	(4)		90	(6)
Class I Shares
Six-month period ended 3-31-2017 (unaudited)		9.98		-0.07			104		1.00	(4)(11)		0.95	(4)		1.34	(4)		0.61	(4)		106
Period ended 9-30-2016(5)		10.23		2.30			74		1.00	(4)(12)		1.02	(4)		1.30	(4)		0.72	(4)		90	(6)
Class N Shares
Six-month period ended 3-31-2017 (unaudited)		9.98		-0.05			83		0.87	(4)(13)		1.24	(4)		1.17	(4)		0.94	(4)		106
Period ended 9-30-2016(5)		10.24		2.40			2		0.87	(4)(14)		1.17	(4)		1.16	(4)		0.88	(4)		90	(6)
Class Y Shares
Six-month period ended 3-31-2017 (unaudited)		9.97		-0.23			3		1.25	(4)(15)		0.69	(4)		1.56	(4)		0.38	(4)		106
Period ended 9-30-2016(5)		10.22		2.20			4		1.15	(4)(16)		0.89	(4)		1.55	(4)		0.49	(4)		90	(6)

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 77

NOTES TO FINANCIAL STATEMENTS IVY FUNDS

MARCH 31, 2017 (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 Apollo Multi-Asset Income Fund, Ivy Apollo Strategic Income Fund, Ivy California Municipal High Income Fund, Ivy IG International Small Cap Fund, Ivy Pictet Emerging Markets Local Currency Debt Fund (formerly known as Ivy Emerging Markets Local Currency Debt Fund) and Ivy Pictet Targeted Return Bond Fund (formerly known as Ivy Targeted Return Bond Fund) (each, a “Fund”) are six 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 C, Class I and Class Y shares. All Funds (except for Ivy California Municipal High Income Fund) offer Class N (formerly Class R6) shares. Ivy Pictet Emerging Markets Local Currency Debt Fund also offers Class E and Class R 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 C shares are sold without a front-end sales charge, but may be subject to a CDSC. Class I, Class N, Class R and Class Y shares are sold without either a front-end sales charge or a CDSC. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Net investment income, net assets and 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, C, E, R and Y have a distribution and service plan. Class I and Class N shares are not included in the plan.

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.

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

78 SEMIANNUAL REPORT 2017

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 or 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.

Collateralized Loan Obligations. Certain Funds may invest in collateralized loan obligations (“CLOs”). CLOs are a type of asset-backed security. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The cash flows of a CLO can be split into multiple segments, called “tranches”, which will vary in risk profile and yield. Each tranche is a piece of the CLO, and dictates who will be paid out first when the underlying loan payments are made. It also dictates the risk associated with the investment, since investors who are paid last have a higher risk of default from the underlying loans. 

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. 

Offering costs. Each Fund bears all costs associated with the offering expenses of the Fund including legal, printing and support services. All such costs are amortized as an expense of the new Fund on a straight-line basis over twelve months from commencement 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

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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. 

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.

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 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

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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.

Other Government Securities. Other government securities include emerging market sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities. The fair value of other government securities 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 other government securities 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.

Overdraft due to custodian. Due to the short-term nature of overdraft due to custodian, the carrying value approximates fair value and the liability is categorized as Level 2 in the fair value hierarchy.

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.

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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 March 31, 2017, 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 Apollo Multi-Asset Income Fund, Ivy Apollo Strategic Income Fund, Ivy Pictet Emerging Markets Local Currency Debt Fund and Ivy Pictet Targeted Return Bond 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 Pictet Emerging Markets Local Currency Debt Fund and Ivy Pictet Targeted Return Bond 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 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

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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 Pictet Emerging Markets Local Currency Debt Fund and Ivy Pictet Targeted Return Bond 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. Swap agreements are bilaterally negotiated agreements between a Fund and counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“centrally cleared swaps”).

Swaps are marked to market daily and changes in value are recorded as unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as variation margin receivable or variation margin payable on the Statement of Assets and Liabilities. 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.

Upon entering into a centrally cleared swap, a Fund is required to deposit initial margin with the broker in the form of cash or securities. Securities deposited as initial margin, if any, are designated on the Schedule of Investments. Cash deposited as initial margin is identified on the Schedule of Investments and is recorded as restricted cash on the Statement of Assets and Liabilities.

Credit default swap agreements on corporate issuers or credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of the corporate issuer or all or part of the referenced entities comprising the credit index. As a buyer, if an underlying credit event occurs, a Fund will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the corporate issuer security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the corporate issuer security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, a Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the corporate issuer security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the corporate issuer security or underlying securities comprising the index.

Ivy Pictet Emerging Markets Local Currency Debt Fund and Ivy Pictet Targeted Return Bond Fund enter into credit default swaps to protect bonds owned by a Fund against default.

Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time.

Ivy Pictet Emerging Markets Local Currency Debt Fund enters into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds, which may decrease when interest rates rise (interest rate risk).

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.

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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.

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 March 31, 2017:

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 Apollo Multi-Asset Income Fund
Unrealized appreciation on forward foreign currency contracts	$	273	$	—	$	273	$	(229	)	$	—	$	—		$	44
Ivy Apollo Strategic Income Fund
Unrealized appreciation on forward foreign currency contracts	$	48	$	—	$	48	$	(9	)	$	—	$	—		$	39
Ivy Pictet Emerging Markets Local Currency Debt Fund
Unrealized appreciation on forward foreign currency contracts	$	296	$	—	$	296	$	(285	)	$	—	$	—		$	11
Unrealized appreciation on swap agreements		51		—		51		(2	)		—		—			49
Total	$	347	$	—	$	347	$	(287	)	$	—	$	—		$	60
Ivy Pictet Targeted Return Bond Fund
Investments in unaffiliated securities at value*	$	362	$	—	$	362	$	—	**	$	—	$	(218	)	$	144
Unrealized appreciation on forward foreign currency contracts		431		—		431		(381	)		—		(50	)		—
Unrealized appreciation on swap agreements		24		—		24		(10	)		—		—			14
Total	$	817	$	—	$	817	$	(391	)	$	—	$	(268	)	$	158

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

** Not shown due to rounding.

86 SEMIANNUAL REPORT 2017

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 Apollo Multi-Asset Income Fund
Unrealized depreciation on forward foreign currency contracts	$	266		$	—	$	266		$	(229	)	$	(37	)	$	—		$	—
Ivy Apollo Strategic Income Fund
Unrealized depreciation on forward foreign currency contracts	$	9		$	—	$	9		$	(9	)	$	—		$	—		$	—
Ivy Pictet Emerging Markets Local Currency Debt Fund
Unrealized depreciation on forward foreign currency contracts	$	492		$	—	$	492		$	(285	)	$	—		$	—		$	207
Unrealized depreciation on swap agreements		27			—		27			(2	)		—			—			25
Total	$	519		$	—	$	519		$	(287	)	$	—		$	—		$	232
Ivy Pictet Targeted Return Bond Fund
Unrealized depreciation on forward foreign currency contracts	$	1,655		$	—	$	1,655		$	(381	)	$	(587	)	$	(205	)	$	482
Unrealized depreciation on swap agreements		54			—		54			(10	)		(39	)		—			5
Written options at value		—	*		—		—	*		—	*		—			—			—
Total	$	1,709		$	—	$	1,709		$	(391	)	$	(626	)	$	(205	)	$	487

* Not shown due to rounding.

2017 SEMIANNUAL REPORT 87

Additional Disclosure Related to Derivative Instruments

Fair values of derivative instruments as of March 31, 2017:

		Assets				Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value			Statement of Assets & Liabilities Location	Value
Ivy Apollo Multi-Asset Income Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts	$	273		Unrealized depreciation on forward foreign currency contracts	$	266
Ivy Apollo Strategic Income Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		48		Unrealized depreciation on forward foreign currency contracts		9
Ivy Pictet Emerging Markets Local Currency Debt Fund	Credit			—		Unrealized depreciation on over the counter swap agreements		27
	Foreign currency	Unrealized appreciation on forward foreign currency contracts		296		Unrealized depreciation on forward foreign currency contracts		492
	Interest rate	Investments in unaffiliated securities at value*		—	***			—
		Unrealized appreciation on swap agreements		51				—
Ivy Pictet Targeted Return Bond Fund	Credit	Unrealized appreciation on centrally cleared swap agreements**		163		Unrealized appreciation on centrally cleared swap agreements**		18
		Unrealized appreciation on over the counter swap agreements		24		Unrealized depreciation on over the counter swap agreements		54
	Foreign currency	Investments in unaffiliated securities at value*		362		Written options at value		—	***
		Unrealized appreciation on forward foreign currency contracts		431		Unrealized depreciation on forward foreign currency contracts		1,655
	Interest rate	Investments in unaffiliated securities at value*		5				—
		Unrealized appreciation on futures contracts**		62		Unrealized depreciation on futures contracts**		254

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

** The value presented includes cumulative gain (loss) on open futures contracts and centrally cleared credit default swap agreements; however, the value reflected on the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable (payable) as of period ended March 31, 2017.

***Not shown due to rounding.

88 SEMIANNUAL REPORT 2017

Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended March 31, 2017:

		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 Apollo Multi-Asset Income Fund	Foreign currency	$	—		$	—		$	—		$	—		$	1,924		$	1,924
Ivy Apollo Strategic Income Fund	Foreign currency		—			—			—			—			141			141
Ivy Pictet Emerging Markets Local Currency Debt Fund	Interest rate		(10	)		(111	)		(5	)		5			—			(121	)
	Foreign currency		—			—			—			—			(55	)		(55	)
Ivy Pictet Targeted Return Bond Fund	Credit		—			403			—			—			—			403
	Foreign currency		(340	)		—			—			547			1,697			1,904
	Interest rate		(262	)		—			1,031			(6	)		—			763

* 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 March 31, 2017:

		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 Apollo Multi-Asset Income Fund	Foreign currency	$	—		$	—		$	—		$	—	$	(136	)	$	(136	)
Ivy Apollo Strategic Income Fund	Foreign currency		—			—			—			—		41			41
Ivy Pictet Emerging Markets Local Currency Debt Fund	Credit		—			(27	)		—			—		—			(27	)
	Foreign currency		—			—			—			—		(199	)		(199	)
	Interest rate		1			30			—	**		—		—			31
Ivy Pictet Targeted Return Bond Fund	Credit		—			38			—			—		—			38
	Foreign currency		(177	)		—			—			144		(1,396	)		(1,429	)
	Interest rate		37			—			(164	)		25		—			(102	)

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

**Not shown due to rounding.

During the period ended March 31, 2017, 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 Apollo Multi-Asset Income Fund	$	54	$	—	$	—	$	—	$	—		$	—
Ivy Apollo Strategic Income Fund		88		—		—		—		—			—
Ivy Pictet Emerging Markets Local Currency Debt Fund		103		37		285		110,670		—	*		—
Ivy Pictet Targeted Return Bond Fund		95		3,110		58,045		17,923		322			422

*Not shown due to rounding.

(1) Average value outstanding during the period.

(2) Average notional amount outstanding during the period.

2017 SEMIANNUAL REPORT 89

5. WRITTEN OPTION ACTIVITY ($ amounts in thousands)

Transactions in written options were as follows:

Fund	Outstanding at 9-30-16		Options written		Options closed			Options exercised			Options expired			Outstanding at 3-31-17
Ivy Pictet Emerging Markets Local Currency Debt Fund
Number of Contracts		N/A		32		—			—			(32	)		N/A
Premium Received		N/A	$	5	$	—		$	—		$	(5	)		N/A
Ivy Pictet Targeted Return Bond Fund
Number of Contracts		106		123		(148	)		(81	)		—			N/A
Notional Amounts		16,400,000		42,117,000		(20,076,000	)		(8,422,000	)		(27,600,000	)		2,419,000
Premium Received	$	423	$	836	$	(456	)	$	(370	)	$	(398	)	$	35

6. 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 $1,500M			$1,500 to $2,000M			$2,000 to $3,000M			$3,000 to $5,000M			$5,000 to $10,000M			$10,000 to $15,000M			Over $15,000M
Ivy Apollo Multi-Asset Income Fund		0.700	%		0.700	%		0.650	%		0.650	%		0.610	%		0.580	%		0.580	%		0.580	%		0.580	%
Ivy Apollo Strategic Income Fund		0.680			0.680			0.620			0.620			0.580			0.570			0.570			0.570			0.570
Ivy California Municipal High Income Fund		0.525			0.500			0.450			0.400			0.400			0.400			0.395			0.390			0.385
Ivy IG International Small Cap Fund		1.000			1.000			0.950			0.950			0.900			0.900			0.850			0.850			0.850
Ivy Pictet Emerging Markets Local Currency Debt Fund		0.900			0.900			0.850			0.850			0.800			0.800			0.750			0.720			0.720
Ivy Pictet Targeted Return Bond Fund		0.900			0.900			0.850			0.850			0.800			0.800			0.750			0.750			0.750

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

Under an agreement between IICO and Apollo Credit Management, LLC (“Apollo”), Apollo serves as subadviser for the total return strategy of each of the Ivy Apollo Multi-Asset Income Fund and Ivy Apollo Strategic Income Fund. Under an agreement between IICO and LaSalle Investment Management Securities, LLC (“LaSalle”), LaSalle serves as subadviser for the global real estate strategy of the Ivy Apollo Multi-Asset Income Fund. Under an agreement between IICO and Pictet Asset Management Limited (“Pictet UK”) and Pictet Asset Management (Singapore) PTE Ltd. (“Pictet Singapore,” and collectively with Pictet UK, “Pictet”), Pictet serves as subadvisor to Ivy Pictet Emerging Markets Local Currency Debt Fund. Under an agreement between IICO and I.G. International Management Ltd. (“IG Ireland”), IG Ireland serves as subadviser for the Ivy IG International Small Cap Fund. Under an agreement between IICO and Pictet Asset Management SA (“Pictet AM CH”), Pictet AM CH serves as subadvisor to Ivy Pictet Targeted Return 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.

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.

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.

90 SEMIANNUAL REPORT 2017

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 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. 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 N 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 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 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 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 C or certain Class A and Class E shares and is paid to IDI. During the period ended March 31, 2017, IDI received the following amounts in sales commissions and CDSCs:

	Gross Sales Commissions		CDSC								Commissions Paid(1)
			Class A			Class C			Class E
Ivy Apollo Multi-Asset Income Fund	$	213	$	1		$	1			N/A	$	206
Ivy Apollo Strategic Income Fund		145		2			—	*		N/A		143
Ivy California Municipal High Income Fund		11		—			—			N/A		10
Ivy IG International Small Cap Fund		3		—			—			N/A		3
Ivy Pictet Emerging Markets Local Currency Debt Fund		11		—	*		—	*	$	—		10
Ivy Pictet Targeted Return Bond Fund		20		—			—	*		N/A		18

* Not shown due to rounding.

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

2017 SEMIANNUAL REPORT 91

Expense Reimbursements and/or Waivers. Fund and class expense limitations and related waivers/reimbursements for the period ended March 31, 2017 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 Apollo Multi-Asset Income Fund	All Classes	Contractual	10-1-2015	1-31-2018	N/A		$	—		Investment Management Fee
	Class A	Contractual	10-1-2015	1-31-2018	1.30%		$	—		N/A
	Class C	Contractual	10-1-2015	1-31-2018	2.17%		$	—		N/A
	Class I	Contractual	10-1-2015	1-31-2018	1.00%		$	—		N/A
	Class N	Contractual	10-1-2015	1-31-2018	1.00%		$	—		N/A
	Class Y	Contractual	10-1-2015	1-31-2018	1.25%		$	—		N/A
Ivy Apollo Strategic Income Fund	All Classes	Contractual	10-1-2015	1-31-2018	N/A		$	—		Investment Management Fee
	Class A	Contractual	10-1-2015	1-31-2018	1.15%		$	33		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	10-1-2015	1-31-2018	1.85%		$	6		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	10-1-2015	1-31-2018	0.85%		$	144		Shareholder Servicing
	Class N	Contractual	10-1-2015	1-31-2018	0.85%		$	—		N/A
	Class Y	Contractual	10-1-2015	1-31-2018	1.10%		$	4		12b-1 Fees and/or Shareholder Servicing
Ivy California Municipal High Income Fund	Class A	Contractual	10-3-2016	1-31-2018	0.80%		$	—		N/A
	Class I	Contractual	10-3-2016	1-31-2018	0.60%		$	—		N/A
	Class Y	Contractual	10-3-2016	1-31-2018	Not to exceed Class A		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy IG International Small Cap Fund	All Classes	Contractual	1-4-2016	1-31-2018	N/A		$	39	(1)	Investment Management Fee
	Class A	Contractual	1-10-2017	1-31-2018	1.45%		$	—		N/A
	Class I	Contractual	1-10-2017	1-31-2018	1.15%		$	5		Shareholder Servicing
	Class Y	Contractual	1-10-2017	1-31-2018	Not to exceed Class A		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Pictet Emerging Markets Local Currency Debt Fund	All Classes	Contractual	4-30-2014	1-31-2018	N/A		$	129	(2)	Investment Management Fee
	Class A	Contractual	4-30-2014	1-31-2018	1.25%		$	15		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	4-30-2014	1-31-2018	2.00%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	4-30-2014	1-31-2018	1.40%		$	—		N/A
	Class I	Contractual	4-30-2014	1-31-2018	1.00%		$	25		Shareholder Servicing
	Class N	Contractual	1-30-2015	1-31-2018	1.00%		$	—	*	Shareholder Servicing
	Class R	Contractual	4-30-2014	1-31-2018	1.50%		$	2		Shareholder Servicing
	Class Y	Contractual	4-30-2014	1-31-2018	1.25%		$	3		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	4-30-2014	1-31-2018	Not to exceed Class A		$	—		N/A
Ivy Pictet Targeted Return Bond Fund	All Classes	Contractual	1-4-2016	1-31-2018	N/A		$	188		Investment Management Fee
	Class A	Contractual	1-4-2016	1-31-2018	1.38%		$	—		N/A
	Class C	Contractual	1-4-2016	1-31-2018	2.08%		$	—		N/A
	Class I	Contractual	1-4-2016	1-31-2018	1.00%		$	22		Shareholder Servicing
	Class N	Contractual	1-4-2016	1-31-2018	0.87%		$	1		Shareholder Servicing
	Class Y	Contractual	1-4-2016	1-31-2018	1.25%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	1-4-2016	1-31-2018	Not to exceed Class A		$	—		N/A

*Not shown due to rounding.

(1) Due to Class A, Class C, Class I, Class N and/or Class Y contractual expense limits, investment management fees were waived for all share classes.

(2) Due to Class A, Class C, Class E, Class I, Class N, Class R and/or Class Y contractual expense limits, investment management fees were waived for all share classes.

92 SEMIANNUAL REPORT 2017

Any amounts due to the Funds as a reimbursement but not paid as of March 31, 2017 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

7. 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 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 March 31, 2017.

8. 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 March 31, 2017, were as follows:

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Apollo Multi-Asset Income Fund	$	—	$	342,912	$	—	$	177,620
Ivy Apollo Strategic Income Fund		11,264		161,613		949		60,612
Ivy California Municipal High Income Fund		—		11,567		—		—
Ivy IG International Small Cap Fund		—		30,574		—		3,537
Ivy Pictet Emerging Markets Local Currency Debt Fund		—		17,431		—		12,359
Ivy Pictet Targeted Return Bond Fund		101,134		118,375		40,539		62,100

9. 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 Apollo Multi-Asset Income Fund												Ivy Apollo Strategic Income Fund
	Six months ended 3-31-17 (Unaudited)						Period from 10-1-15 to 9-30-16						Six months ended 3-31-17 (Unaudited)						Period from 10-1-15 to 9-30-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		5,740		$	59,472			27,541		$	278,996			3,930		$	40,007			29,517		$	294,066
Class C		741			7,692			1,784			18,159			308			3,139			918			9,112
Class I		17,957			186,692			27,120			276,497			13,823			140,812			21,143			213,144
Class N		75			781			790			8,082			40			411			573			5,733
Class Y		86			892			1,025			10,504			246			2,505			576			5,753
Shares issued in reinvestment of distributions to shareholders:
Class A		200			2,080			268			2,714			181			1,835			231			2,299
Class C		20			211			11			115			11			111			5			53
Class I		598			6,204			174			1,800			557			5,648			140			1,432
Class N		3			30			2			22			2			18			1			9
Class Y		2			22			1			10			8			82			3			34
Shares redeemed:
Class A		(1,852	)		(19,319	)		(18,764	)		(188,964	)		(1,377	)		(14,021	)		(20,537	)		(206,558	)
Class C		(185	)		(1,926	)		(509	)		(5,239	)		(321	)		(3,276	)		(127	)		(1,294	)
Class I		(5,404	)		(56,417	)		(2,856	)		(29,602	)		(3,707	)		(37,734	)		(3,294	)		(33,379	)
Class N		(61	)		(637	)		(467	)		(4,846	)		(18	)		(186	)		(14	)		(140	)
Class Y		(39	)		(399	)		(613	)		(6,349	)		(30	)		(303	)		(17	)		(174	)
Net increase		17,881		$	185,378			35,507		$	361,899			13,653		$	139,048			29,118		$	290,090

2017 SEMIANNUAL REPORT 93

	Ivy California Municipal High Income Fund						Ivy IG International Small Cap Fund						Ivy Pictet Emerging Markets Local Currency Debt Fund
	Period from 10-3-16 to 3-31-17 (Unaudited)						Period from 1-10-17 to 3-31-17 (Unaudited)						Six months ended 3-31-17 (Unaudited)						Year ended 9-30-16
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		678		$	6,745			968		$	9,692			209		$	1,867			1,532		$	13,643
Class C		112			1,114			101			1,011			20			178			211			1,936
Class E		N/A			N/A			N/A			N/A			—			—			199			1,860
Class I		425			4,215			1,736			17,418			1,256			11,265			2,953			26,657
Class N		N/A			N/A			45			450			12			107			37			329
Class R		N/A			N/A			N/A			N/A			—			—			200			1,854
Class Y		100			1,000			45			450			59			521			677			6,089
Shares issued in reinvestment of distributions to shareholders:
Class A		1			10			—			—			—			—			—			—
Class C		—	*		—	*		—			—			—			—			—			—
Class E		N/A			N/A			N/A			N/A			—			—			—			—
Class I		—	*		3			—			—			—			—			—			—
Class N		N/A			N/A			—			—			—			—			—			—
Class R		N/A			N/A			N/A			N/A			—			—			—			—
Class Y		—			—			—			—			—			—			—			—
Shares redeemed:
Class A		(13	)		(122	)		(33	)		(343	)		(156	)		(1,374	)		(3,508	)		(30,514	)
Class C		—			—			—			—			(8	)		(71	)		(206	)		(1,892	)
Class E		N/A			N/A			N/A			N/A			—			—			(200	)		(1,864	)
Class I		(14	)		(139	)		(4	)		(37	)		(659	)		(5,854	)		(976	)		(9,077	)
Class N		N/A			N/A			—			—			(25	)		(219	)		(26	)		(234	)
Class R		N/A			N/A			N/A			N/A			—			—			(200	)		(1,856	)
Class Y		—			—			—			—			(275	)		(2,397	)		(451	)		(4,144	)
Net increase		1,289		$	12,826			2,858		$	28,641			433		$	4,023			242		$	2,787

	Ivy Pictet Targeted Return Bond Fund
	Six months ended 3-31-17 (Unaudited)						Period from 1-4-16 to 9-30-16
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		515		$	5,167			7,062		$	70,673
Class C		16			163			384			3,841
Class I		4,918			49,376			8,381			84,704
Class N		8,333			83,164			228			2,281
Class Y		—			—			350			3,501
Shares issued in reinvestment of distributions to shareholders:
Class A		25			244			—			—
Class C		1			4			—			—
Class I		208			2,053			—			—
Class N		—	*		4			—			—
Class Y		—			—			—			—
Shares redeemed:
Class A		(421	)		(4,208	)		(5,208	)		(52,286	)
Class C		(4	)		(37	)		(4	)		(35	)
Class I		(2,033	)		(20,329	)		(1,134	)		(11,593	)
Class N		(218	)		(2,175	)		(8	)		(83	)
Class Y		—			—			—			—
Net increase		11,340		$	113,426			10,051		$	101,003

* Not shown due to rounding.

94 SEMIANNUAL REPORT 2017

10. 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 Statements of Operations. At March 31, 2017, there were no outstanding bridge loan commitments.

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

For Federal income tax purposes, cost of investments owned at March 31, 2017 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Apollo Multi-Asset Income Fund	$	553,922	$	24,124	$	5,662	$	18,462
Ivy Apollo Strategic Income Fund		435,982		8,870		3,354		5,516
Ivy California Municipal High Income Fund		13,813		112		248		(136	)
Ivy IG International Small Cap Fund		27,665		1,645		603		1,042
Ivy Pictet Emerging Markets Local Currency Debt Fund		53,707		987		2,685		(1,698	)
Ivy Pictet Targeted Return Bond Fund		206,982		1,096		1,545		(449	)

For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended September 30, 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 Apollo Multi-Asset Income Fund	$	1,687	$	—	$	—	$	617	$	—
Ivy Apollo Strategic Income Fund		1,839		134		—		—		—
Ivy California Municipal High Income Fund		N/A		N/A		N/A		N/A		N/A
Ivy IG International Small Cap Fund		N/A		N/A		N/A		N/A		N/A
Ivy Pictet Emerging Markets Local Currency Debt Fund		—		—		—		—		218
Ivy Pictet Targeted Return Bond Fund		887		—		—		—		—

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 September 30, 2016 and 2015 were as follows:

	September 30, 2016				September 30, 2015
Fund	Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains		Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains
Ivy Apollo Multi-Asset Income Fund	$	5,143	$	6		N/A		N/A
Ivy Apollo Strategic Income Fund		5,272		—		N/A		N/A
Ivy California Municipal High Income Fund		N/A		N/A		N/A		N/A
Ivy IG International Small Cap Fund		N/A		N/A		N/A		N/A
Ivy Pictet Emerging Markets Local Currency Debt Fund		—		—	$	688	$	10
Ivy Pictet Targeted Return Bond Fund		—		—		N/A		N/A

(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.

2017 SEMIANNUAL REPORT 95

Accumulated capital losses represent net capital loss carryovers as of September 30, 2016 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. As of September 30, 2016, the capital loss carryovers were as follows:

	Post-Enactment
Fund	Short-Term Capital Loss Carryover		Long-Term Capital Loss Carryover
Ivy Apollo Multi-Asset Income Fund	$	—	$	—
Ivy Apollo Strategic Income Fund		—		—
Ivy California Municipal High Income Fund		N/A		N/A
Ivy IG International Small Cap Fund		N/A		N/A
Ivy Pictet Emerging Markets Local Currency Debt Fund		302		182
Ivy Pictet Targeted Return Bond Fund		—		—

96 SEMIANNUAL REPORT 2017

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS IVY FUNDS

Ivy IG International Small Cap Fund

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on November 15, 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 IG International Small Cap Fund (the “Fund”), to include the Fund under the Management Agreement. The Board also considered and approved an investment subadvisory agreement (the “Sub-advisory Agreement”) between IICO and I.G. International Management Limited (“IGIM”) with respect to the Fund, a newly created series of the Trust.

The Independent Trustees were assisted in their consideration of the Management Agreement and the Sub-advisory Agreement (together, the “Agreements”) by independent legal counsel, and met with such counsel separately from representatives of IICO and IGIM. Independent legal counsel had provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its review of the Agreements, including, among other things, the nature and the quality of the services proposed to be provided to the Fund by IICO and IGIM, potential profitability of each of IICO and IGIM (including any fall-out benefits) from their 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 Agreements are discussed below.

In considering the Agreements, 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 took note of the prior performance of IGIM in managing other international small cap strategies. The Board also considered the proposed expenses of the New Fund, the cost of the services proposed to be provided by IICO and IGIM, including as compared to the other Funds in the Ivy Funds family and comparable funds, and the proposed expense cap agreements, and concluded that the expenses of the New Fund were acceptable. The Board, however, did not discuss the projected profitability of either IICO or IGIM in managing the New Fund because the New Fund had not yet commenced operations, but noted that it would monitor profitability once the New Fund begins operations. The Board also considered the nature, extent and quality of services proposed to be provided to the New Fund by IICO and IGIM, taking into account the investment objective and strategy of the New Fund, the Board’s experience with IICO and IGIM’s affiliate, Mackenzie Financial, and the materials that management had provided to the Board on the New Fund. In addition, the Board reviewed the resources and key personnel of both IICO and IGIM. The Board also considered other services proposed to be provided to the New Fund by IICO based upon their current experiences with IICO, such as IICO’s ability to monitor adherence to the New Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees on New Fund matters, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures and with applicable securities laws and regulations. The Board concluded that the nature and extent of the services proposed to be provided by IICO and IGIM are reasonable, considering the quality of the services currently provided by IICO for other series of the Trust, and as contemplated for IGIM. The Board also discussed whether either IICO or IGIM would derive any other direct or indirect benefits from serving as investment adviser or investment sub-adviser, respectively, to the New Fund. The Board considered the benefits that would accrue to IICO and IGIM from their relationship with the New Fund, including the fact that a variety of services for the New Fund are 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, IGIM nor any of their affiliates would receive any additional direct or indirect benefits that would preclude the Board from approving the amendment to the Investment Management Agreement with IICO and the Investment Sub-advisory agreement between IICO and IGIM.

Ivy Crossover Credit Fund

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on February 22, 2017, 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 Crossover Credit Fund (the “Fund”), to include the Fund under the Management Agreement.

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 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 the quality of the services proposed to be provided to the Fund by IICO, potential profitability of IICO (including any fall-out benefits) from its proposed relationship with the

2017 SEMIANNUAL REPORT 97

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 Agreements are discussed below.

The Board noted that although the Fund had not yet commenced operations, the Fund appears 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 series of the Trust and comparable funds, and the proposed expense cap agreements, and concluded that the proposed expenses of the Fund were acceptable. The Board, however, did not discuss the projected profitability of IICO in managing the Fund because the Fund had not yet commenced operations, but noted that it would monitor profitability once the Fund begins operations. The Board also considered the nature, extent and quality of services proposed to be provided to the Fund by IICO, taking into account the investment objective and strategy of the Fund, the Board’s experience with IICO, and the materials that management had 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 their 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 securities laws and regulations. The Board concluded that the nature and extent of the services proposed to be provided by IICO are reasonable, considering the quality of the services currently provided by IICO for other series 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 are 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 IICO nor any of its affiliates would receive any additional direct or indirect benefits that would preclude the Board from approving the amendment to the Investment Management Agreement with IICO. Finally, the Board considered the recommendation of the Investment Oversight Committee, which previously had considered these matters, and had recommended that the Board approve the Management Agreement.

Ivy ProShares Funds

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on February 22, 2017, 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 the Ivy ProShares S&P 500 Dividend Aristocrats Index Fund, Ivy ProShares Russell 2000 Dividend Growers Index Fund, Ivy ProShares Interest Rate Hedged High Yield Index Fund, Ivy ProShares S&P 500 Bond Index Fund and Ivy ProShares MSCI ACWI Index Fund (collectively, the “ProShares Funds”), to include the ProShares Funds under the Management Agreement. The Board also considered and approved an investment subadvisory agreement (the “Sub-advisory Agreement”) between IICO and ProShare Advisory LLC (“ProShare”), with respect to the ProShares Funds, each, a newly created series of the Trust.

The Independent Trustees were assisted in their consideration of the Management Agreement and the Sub-advisory Agreement (together, the “Agreements”) by independent legal counsel, and met with such counsel separately from representatives of IICO and ProShare. Independent legal counsel had provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its review of the Agreements, including, among other things, the nature and the quality of the services proposed to be provided to the ProShares Funds by IICO and ProShare, potential profitability of each of IICO and ProShare (including any fall-out benefits) from their proposed relationship with the ProShares Funds, 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 Agreements are discussed below.

The Board noted that although the ProShares Funds had not yet commenced operations, the ProShares Funds appear to be designed to be able to achieve acceptable performance. The Board took note of ProShare’s experience in managing index products. The Board also considered the proposed expenses of the ProShares Funds, the cost of the services proposed to be provided by IICO and ProShare, including as compared to the other series of the Trust and comparable funds, and the proposed expense cap agreements, and concluded that the proposed expenses of the ProShares Funds were acceptable. The Board, however, did not discuss the projected profitability of either IICO or ProShare in managing the ProShares Funds because the ProShares Funds had not yet commenced operations, but noted that it would monitor profitability once the ProShares Funds begin operations. The Board also considered the nature, extent and quality of services proposed to be provided to the ProShares Funds by IICO and ProShare, taking into account the investment objective and strategy of the ProShares Funds, the Board’s experience with IICO, its meeting with representatives of ProShare and the materials that management had provided to the Board on ProShares. In addition, the Board reviewed the resources and key personnel of

98 SEMIANNUAL REPORT 2017

both IICO and ProShare. The Board also considered other services proposed to be provided to the ProShares Funds by IICO based upon their current experiences with IICO, such as IICO’s ability to monitor adherence to the ProShares Funds’ investment restrictions, producing reports, providing support services for the Board and Board committees on ProShares Funds’ matters, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures and with applicable securities laws and regulations. The Board concluded that the nature and extent of the services proposed to be provided by IICO and ProShare are reasonable, considering the quality of the services currently provided by IICO for other series of the Trust, and as contemplated for ProShare. The Board also discussed whether either IICO or ProShare would derive any other direct or indirect benefits from serving as investment adviser or investment sub-adviser, respectively, to the ProShares Funds. The Board considered the benefits that would accrue to IICO and ProShare from their relationship with the ProShares Funds, including the fact that a variety of services for the ProShares Funds are 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, ProShare nor any of their affiliates would receive any additional direct or indirect benefits that would preclude the Board from approving the amendment to the Investment Management Agreement with IICO and the Investment Sub-advisory agreement between IICO and ProShare. Finally, the Board considered the recommendation of the Investment Oversight Committee, which previously had considered these matters, and had recommended that the Board approve the Agreements.

2017 SEMIANNUAL REPORT 99

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

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.

100 SEMIANNUAL REPORT 2017

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2017 SEMIANNUAL REPORT 101

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102 SEMIANNUAL REPORT 2017

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 Core Fund¹

¹(formerly known as Ivy Small Cap Value Fund)

Ivy Small Cap Growth Fund

Ivy Tax-Managed Equity Fund

Ivy Value Fund

Global/International Funds

Ivy Cundill Global Value Fund

Ivy Emerging Markets Equity Fund

Ivy Pictet Emerging Markets Local Currency Debt Fund¹

¹(formerly known as 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 IG International Small Cap 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 Natural Resources Fund¹

¹(formerly known as Ivy Global Natural Resources Fund)

Ivy LaSalle Global Real Estate Fund

Ivy LaSalle Global Risk-Managed Real Estate Fund

Ivy Advantus Real Estate Securities Fund¹

¹(formerly known as Ivy Real Estate Securities Fund)

Ivy Science and Technology Fund

Fixed Income Funds

Ivy Apollo Strategic Income Fund

Ivy Advantus Bond Fund¹

¹(formerly known as Ivy Bond Fund)

Ivy California Municipal High Income Fund

Ivy Global Bond Fund

Ivy Government Money Market Fund¹

¹(formerly known as Ivy Money Market Fund)

Ivy High Income Fund

Ivy Limited-Term Bond Fund

Ivy Municipal Bond Fund

Ivy Municipal High Income Fund

Ivy Pictet Targeted Return Bond Fund¹

¹(formerly known as 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.

2017 SEMIANNUAL REPORT 103

SEMIANN-APEMTR (3-17)

ITEM 2.    CODE OF ETHICS

Required in annual report only.

ITEM 3.    AUDIT COMMITTEE FINANCIAL EXPERT

Required in annual report only.

ITEM 4.    PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Required in annual report only.

ITEM 5.    AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6.    SCHEDULE OF INVESTMENTS.

See Item 1 Shareholder Report.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

ITEM 11.    CONTROLS AND PROCEDURES.

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

2

(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.

3

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/ Jennifer K. Dulski
	Jennifer K. Dulski, Secretary
Date:	June 8, 2017

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:	June 8, 2017
By	/s/ Joseph W. Kauten
	Joseph W. Kauten, Vice President and Principal Financial Officer
Date:	June 8, 2017