N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-6569

IVY FUNDS

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

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: March 31

Date of reporting period: September 30, 2017

ITEM 1. REPORTS TO STOCKHOLDERS.

  Semiannual Report   September 30, 2017

Ticker

Class A

Class B

Class C

Class E

Class I

Class N

Class R

Class Y

IVY FUNDS

Ivy Advantus Real Estate Securities Fund

IRSAX

IRSBX

IRSCX

IREEX

IREIX

IRSEX

IRSRX

IRSYX

Ivy Asset Strategy Fund

WASAX

WASBX

WASCX

IASEX

IVAEX

IASTX

IASRX

WASYX

Ivy Balanced Fund

IBNAX

IBNBX

IBNCX

IVYEX

IYBIX

IBARX

IYBFX

IBNYX

Ivy Energy Fund

IEYAX

IEYBX

IEYCX

IVEEX

IVEIX

IENRX

IYEFX

IEYYX

Ivy LaSalle Global Real Estate Fund

IREAX

IREBX

IRECX

IRESX

IRENX

IRERX

IREYX

Ivy LaSalle Global Risk-Managed Real Estate Fund

IVRAX

IVRBX

IVRCX

IVIRX

IVRNX

IVRRX

IVRYX

Ivy Natural Resources Fund

IGNAX

IGNBX

IGNCX

IGNEX

IGNIX

INRSX

IGNRX

IGNYX

Ivy Science and Technology Fund

WSTAX

WSTBX

WSTCX

ISTEX

ISTIX

ISTNX

WSTRX

WSTYX

IVY INVESTMENTS^® 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:	7
Ivy Advantus Real Estate Securities Fund	7
Ivy Asset Strategy Fund	9
Ivy Balanced Fund	15
Ivy Energy Fund	21
Ivy LaSalle Global Real Estate Fund	24
Ivy LaSalle Global Risk-Managed Real Estate Fund	27
Ivy Natural Resources Fund	30
Ivy Science and Technology Fund	33
Statements of Assets and Liabilities	37
Statements of Operations	39
Statements of Changes in Net Assets	41
Financial Highlights	44
Notes to Financial Statements	60
Renewal of Investment Management Agreements	79
Proxy Voting Information	82
Quarterly Portfolio Schedule Information	82
IRA Disclosure	82

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

2

PRESIDENT’S LETTER IVY FUNDS

	SEPTEMBER 30, 2017 (UNAUDITED)
Philip J. Sanders, CFA

Dear Shareholder,

Over the past six months, investors have endured concerns about global economic growth, the level of interest rates, fluctuation in oil prices and transition to a new U.S. presidential administration. Following the election, domestic equity markets rose sharply and bond yields saw a slight rise, with both trends carrying into the third quarter of 2017. See the table for a fiscal year-over-year comparison of some common market metrics.

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 your funds’ semi-annual fiscal period, the U.S. economy remained fundamentally sound, supported primarily by the U.S. consumer, who is benefitting from lower energy prices, lower inflation in general and an improved labor market. Overall, the global economy has improved over the past year. In particular, economic growth in the eurozone has accelerated, benefitting from domestic policy stimulus and improving external demand.

The U.S. Federal Reserve (Fed) has hiked interest rates four times since late 2015. We think the Fed will raise rates again in December 2017 and two more times in 2018. The Fed also recently announced that it would begin to reduce its balance sheet starting October 2017 by allowing maturing Treasury and mortgage-backed securities to roll off. We think most financial markets already are pricing the drawdown into their projections and do not expect major volatility as a result of the Fed’s actions. We believe job growth and inflation will be the most important determinants in the direction of long-term central bank policy. Overseas, a better economic outlook has caused the European Central Bank to consider adjusting its policies.

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

Economic Snapshot

	9/30/2017		3/31/2017
S&P 500 Index		2,519.36		2,362.72
MSCI EAFE Index		1,973.81		1,792.98
10-Year Treasury Yield		2.33%		2.40%
U.S. unemployment rate		4.2%		4.5%
30-year fixed mortgage rate		3.83%		4.14%
Oil price per barrel	$	51.67	$	50.60

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 September 30, 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 X to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy Advantus Real Estate Securities Fund
Class A	$	1,000	$	1,030.00	$	7.21	$	1,000	$	1,017.99	$	7.16		1.41%
Class B**	$	1,000	$	1,025.10	$	12.05	$	1,000	$	1,013.16	$	11.98		2.37%
Class C	$	1,000	$	1,026.30	$	11.14	$	1,000	$	1,014.10	$	11.08		2.19%
Class E	$	1,000	$	1,030.00	$	7.31	$	1,000	$	1,017.84	$	7.26		1.43%
Class I	$	1,000	$	1,032.00	$	5.38	$	1,000	$	1,019.77	$	5.35		1.06%
Class N****	$	1,000	$	1,032.90	$	4.47	$	1,000	$	1,020.65	$	4.45		0.88%
Class R	$	1,000	$	1,028.70	$	8.42	$	1,000	$	1,016.77	$	8.37		1.65%
Class Y	$	1,000	$	1,030.90	$	6.50	$	1,000	$	1,018.71	$	6.46		1.27%

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 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy Asset Strategy Fund
Class A	$	1,000	$	1,075.00	$	6.12	$	1,000	$	1,019.12	$	5.96		1.19%
Class B**	$	1,000	$	1,071.50	$	10.15	$	1,000	$	1,015.29	$	9.87		1.95%
Class C	$	1,000	$	1,071.50	$	9.94	$	1,000	$	1,015.49	$	9.67		1.91%
Class E	$	1,000	$	1,075.60	$	5.50	$	1,000	$	1,019.75	$	5.35		1.03%
Class I	$	1,000	$	1,077.20	$	4.67	$	1,000	$	1,020.61	$	4.55		0.89%
Class N****	$	1,000	$	1,077.80	$	3.95	$	1,000	$	1,021.29	$	3.84		0.76%
Class R	$	1,000	$	1,073.70	$	7.78	$	1,000	$	1,017.57	$	7.57		1.50%
Class Y	$	1,000	$	1,075.30	$	5.91	$	1,000	$	1,019.37	$	5.76		1.14%
Ivy Balanced Fund
Class A	$	1,000	$	1,030.30	$	5.68	$	1,000	$	1,019.43	$	5.65		1.13%
Class B**	$	1,000	$	1,026.30	$	9.52	$	1,000	$	1,015.72	$	9.47		1.86%
Class C	$	1,000	$	1,026.40	$	9.32	$	1,000	$	1,015.89	$	9.27		1.83%
Class E***	$	1,000	$	1,031.00	$	4.98	$	1,000	$	1,020.19	$	4.95		0.97%
Class I	$	1,000	$	1,031.30	$	4.47	$	1,000	$	1,020.66	$	4.45		0.88%
Class N****	$	1,000	$	1,032.00	$	3.66	$	1,000	$	1,021.47	$	3.64		0.72%
Class R	$	1,000	$	1,028.20	$	7.40	$	1,000	$	1,017.73	$	7.36		1.46%
Class Y	$	1,000	$	1,029.80	$	5.68	$	1,000	$	1,019.44	$	5.65		1.12%
Ivy Energy Fund
Class A	$	1,000	$	864.70	$	6.99	$	1,000	$	1,017.60	$	7.57		1.49%
Class B**	$	1,000	$	860.90	$	11.26	$	1,000	$	1,012.94	$	12.18		2.42%
Class C	$	1,000	$	861.20	$	10.14	$	1,000	$	1,014.17	$	10.98		2.17%
Class E***	$	1,000	$	866.50	$	5.60	$	1,000	$	1,019.03	$	6.06		1.20%
Class I	$	1,000	$	865.90	$	5.22	$	1,000	$	1,019.49	$	5.65		1.11%
Class N****	$	1,000	$	866.50	$	4.48	$	1,000	$	1,020.30	$	4.85		0.95%
Class R	$	1,000	$	863.60	$	8.01	$	1,000	$	1,016.51	$	8.67		1.71%
Class Y	$	1,000	$	865.10	$	6.34	$	1,000	$	1,018.28	$	6.86		1.35%
Ivy LaSalle Global Real Estate Fund
Class A	$	1,000	$	1,028.20	$	7.71	$	1,000	$	1,017.50	$	7.67		1.51%
Class B**	$	1,000	$	1,026.40	$	11.25	$	1,000	$	1,014.00	$	11.18		2.21%
Class C	$	1,000	$	1,025.40	$	11.75	$	1,000	$	1,013.46	$	11.68		2.32%
Class I	$	1,000	$	1,031.10	$	5.38	$	1,000	$	1,019.80	$	5.35		1.05%
Class N****	$	1,000	$	1,018.20	$	5.35	$	1,000	$	1,019.80	$	5.35		1.05%
Class R	$	1,000	$	1,027.30	$	9.22	$	1,000	$	1,016.02	$	9.17		1.81%
Class Y	$	1,000	$	1,028.90	$	7.41	$	1,000	$	1,017.78	$	7.36		1.45%

See footnotes on page 6.

2017 SEMIANNUAL REPORT 5

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy LaSalle Global Risk-Managed Real Estate Fund
Class A	$	1,000	$	1,010.30	$	7.64	$	1,000	$	1,017.50	$	7.67		1.51%
Class B**	$	1,000	$	1,005.60	$	11.53	$	1,000	$	1,013.57	$	11.58		2.29%
Class C	$	1,000	$	1,005.60	$	11.63	$	1,000	$	1,013.47	$	11.68		2.31%
Class I	$	1,000	$	1,011.20	$	5.83	$	1,000	$	1,019.25	$	5.86		1.16%
Class N****	$	1,000	$	1,015.90	$	5.85	$	1,000	$	1,019.27	$	5.86		1.16%
Class R	$	1,000	$	1,006.50	$	9.63	$	1,000	$	1,015.52	$	9.67		1.91%
Class Y	$	1,000	$	1,009.30	$	7.64	$	1,000	$	1,017.50	$	7.67		1.51%
Ivy Natural Resources Fund
Class A	$	1,000	$	981.80	$	8.72	$	1,000	$	1,016.25	$	8.87		1.76%
Class B**	$	1,000	$	976.10	$	14.82	$	1,000	$	1,010.06	$	15.08		2.99%
Class C	$	1,000	$	979.00	$	11.87	$	1,000	$	1,013.02	$	12.08		2.40%
Class E	$	1,000	$	984.20	$	6.35	$	1,000	$	1,018.69	$	6.46		1.27%
Class I	$	1,000	$	984.40	$	6.15	$	1,000	$	1,018.86	$	6.26		1.24%
Class N****	$	1,000	$	985.80	$	5.26	$	1,000	$	1,019.76	$	5.35		1.06%
Class R	$	1,000	$	982.20	$	9.02	$	1,000	$	1,016.00	$	9.17		1.81%
Class Y	$	1,000	$	983.50	$	7.24	$	1,000	$	1,017.74	$	7.36		1.46%
Ivy Science and Technology Fund
Class A	$	1,000	$	1,159.70	$	6.80	$	1,000	$	1,018.82	$	6.36		1.25%
Class B**	$	1,000	$	1,155.40	$	10.88	$	1,000	$	1,014.93	$	10.18		2.02%
Class C	$	1,000	$	1,155.70	$	10.67	$	1,000	$	1,015.16	$	9.98		1.98%
Class E	$	1,000	$	1,159.70	$	7.02	$	1,000	$	1,018.55	$	6.56		1.30%
Class I	$	1,000	$	1,161.30	$	5.40	$	1,000	$	1,020.09	$	5.05		0.99%
Class N****	$	1,000	$	1,162.20	$	4.65	$	1,000	$	1,020.81	$	4.34		0.85%
Class R	$	1,000	$	1,157.80	$	8.63	$	1,000	$	1,017.12	$	8.07		1.59%
Class Y	$	1,000	$	1,159.90	$	6.70	$	1,000	$	1,018.87	$	6.26		1.24%

* Fund expenses for each share class are equal to the Fund’s annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2017, and divided by 365.

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

*** Class share is closed to investment.

**** 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.

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 ADVANTUS REAL ESTATE SECURITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	96.8%
Real Estate	96.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.2%

Lipper Rankings

Category: Real Estate Funds	Rank	Percentile
1 Year	156/261		60
3 Year	113/229		50
5 Year	103/203		51
10 Year	89/137		65

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

Top 10 Equity Holdings

Company	Sector	Industry
Simon Property Group, Inc.	Real Estate	Retail REITs
Equinix, Inc.	Real Estate	Specialized REITs
ProLogis, Inc.	Real Estate	Industrial REITs
Alexandria Real Estate Equities, Inc.	Real Estate	Office REITs
Vornado Realty Trust	Real Estate	Office REITs
Mid-America Apartment Communities, Inc.	Real Estate	Residential REITs
Welltower, Inc.	Real Estate	Health Care REITs
Essex Property Trust, Inc.	Real Estate	Residential REITs
Duke Realty Corp.	Real Estate	Industrial REITs
AvalonBay Communities, Inc.	Real Estate	Residential REITs

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

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

2017 SEMIANNUAL REPORT 7

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Real Estate
Diversified REITs – 3.1%
Liberty Property Trust		253	$	10,376
STORE Capital Corp.		288		7,160
				17,536
Health Care REITs – 8.9%
HCP, Inc.		366		10,191
Healthcare Trust of America, Inc., Class A		242		7,206
Physicians Realty Trust		205		3,627
Ventas, Inc.		196		12,741
Welltower, Inc.		243		17,050
				50,815
Hotel & Resort REITs – 5.3%
Apple Hospitality REIT, Inc.		281		5,321
Hilton Worldwide Holdings, Inc.		80		5,528
Host Hotels & Resorts, Inc.		466		8,614
RLJ Lodging Trust		193		4,237
Sunstone Hotel Investors, Inc.		387		6,213
				29,913
Industrial REITs – 8.9%
Duke Realty Corp.		546		15,747
First Industrial Realty Trust, Inc.		215		6,473
ProLogis, Inc.		420		26,681
Rexford Industrial Realty, Inc.		72		2,052
				50,953
Office REITs – 16.8%
Alexandria Real Estate Equities, Inc.		171		20,296
Boston Properties, Inc.		52		6,365
Brandywine Realty Trust		646		11,300
Corporate Office Properties Trust		150		4,918
Highwoods Properties, Inc.		165		8,611
Kilroy Realty Corp.		187		13,290

COMMON STOCKS (Continued)	Shares		Value
Office REITs (Continued)
SL Green Realty Corp.		110	$	11,159
Vornado Realty Trust		256		19,651
				95,590
Residential REITs – 21.3%
American Campus Communities, Inc.		96		4,221
American Homes 4 Rent		390		8,456
Apartment Investment and Management Co., Class A		165		7,231
AvalonBay Communities, Inc.		87		15,583
Camden Property Trust		119		10,892
Equity Residential		157		10,343
Essex Property Trust, Inc.		63		15,921
Invitation Homes, Inc.		130		2,945
Mid-America Apartment Communities, Inc.		171		18,319
Sun Communities, Inc.		171		14,651
UDR, Inc.		326		12,409
				120,971
Retail REITs – 18.9%
Agree Realty Corp.		174		8,545
Brixmor Property Group, Inc.		515		9,682
GGP, Inc.		471		9,775
Kimco Realty Corp.		561		10,962
National Retail Properties, Inc.		184		7,670
Realty Income Corp.		133		7,578
Regency Centers Corp.		202		12,501
Simon Property Group, Inc.		253		40,715
				107,428
Specialized REITs – 13.6%
CubeSmart		63		1,629
CyrusOne, Inc.		163		9,588
Digital Realty Trust, Inc.		88		10,354
Entertainment Properties Trust		68		4,721
Equinix, Inc.		64		28,768

COMMON STOCKS (Continued)	Shares		Value
Specialized REITs (Continued)
Extra Space Storage, Inc.		136	$	10,893
Public Storage, Inc.		54		11,512
				77,465
Total Real Estate – 96.8%				550,671
TOTAL COMMON STOCKS – 96.8%			$	550,671
(Cost: $411,437)
SHORT-TERM SECURITIES	Principal
Commercial Paper (A) – 2.2%
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.),
1.180%, 10–5–17	$	5,000		4,999
Kroger Co. (The),
1.300%, 10–2–17		5,378		5,377
Medtronic Global Holdings SCA,
1.231%, 10–2–17		2,000		2,000
				12,376
Master Note – 0.3%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (B)		1,724		1,724
TOTAL SHORT-TERM SECURITIES – 2.5%			$	14,100
(Cost: $14,101)
TOTAL INVESTMENT SECURITIES – 99.3%			$	564,771
(Cost: $425,538)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7%				4,239
NET ASSETS – 100.0%			$	569,010

Notes to Schedule of Investments

(A) Rate shown is the yield to maturity at September 30, 2017.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	550,671	$	—	$	—
Short-Term Securities		—		14,100		—
Total	$	550,671	$	14,100	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trusts

See Accompanying Notes to Financial Statements.

8 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY ASSET STRATEGY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	76.4%
Information Technology	15.4%
Financials	14.0%
Industrials	11.8%
Consumer Discretionary	10.7%
Energy	8.6%
Consumer Staples	8.2%
Health Care	5.1%
Materials	1.6%
Telecommunication Services	1.0%
Bullion (Gold)	5.7%
Purchased Options	0.0%
Bonds	9.2%
Other Government Securities	4.5%
United States Government Obligations	4.1%
Corporate Debt Securities	0.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	8.7%

Lipper Rankings

Category: Alternative Global Macro Funds	Rank	Percentile
1 Year	33/298		12
3 Year	226/264		86
5 Year	52/204		26
10 Year	19/58		33

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

Country Weightings

North America	55.7%
United States	52.8%
Other North America	2.9%
Europe	16.0%
France	4.9%
United Kingdom	3.8%
Other Europe	7.3%
Pacific Basin	11.1%
Japan	4.2%
Other Pacific Basin	6.9%
Bullion (Gold)	5.7%
South America	2.8%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options	8.7%

Top 10 Equity Holdings

Company	Country	Sector	Industry
JPMorgan Chase & Co.	United States	Financials	Other Diversified Financial Services
Microsoft Corp.	United States	Information Technology	Systems Software
Philip Morris International, Inc.	United States	Consumer Staples	Tobacco
Adobe Systems, Inc.	United States	Information Technology	Application Software
AIA Group Ltd.	Hong Kong	Financials	Life & Health Insurance
Alibaba Group Holding Ltd. ADR	China	Information Technology	Internet Software & Services
Pfizer, Inc.	United States	Health Care	Pharmaceuticals
Alphabet, Inc., Class A	United States	Information Technology	Internet Software & Services
EOG Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Lockheed Martin Corp.	United States	Industrials	Aerospace & Defense

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 9

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 1.6%
Delphi Automotive plc		582	$	57,229
Automobile Manufacturers – 2.4%
Bayerische Motoren Werke AG (A)		448		45,487
Suzuki Motor Corp. (A)		826		43,325
				88,812
Cable & Satellite – 0.3%
Altice USA, Inc., Class A (B)		444		12,137
Home Improvement Retail – 2.5%
Home Depot, Inc. (The)		350		57,279
Lowe’s Co., Inc.		410		32,759
				90,038
Internet & Direct Marketing Retail – 1.5%
Amazon.com, Inc. (B)		59		56,662
Leisure Products – 0.5%
Media Group Holdings LLC, Series H (B)(C)(D)(E)(F)		640		3,000
Media Group Holdings LLC, Series T (B)(C)(D)(E)(F)		80		15,140
				18,140
Movies & Entertainment – 1.1%
Liberty Media Corp., Class C (B)(C)		1,058		39,814
Tires & Rubber – 0.8%
Bridgestone Corp. (A)		653		29,609
Total Consumer Discretionary – 10.7%				392,441
Consumer Staples
Brewers – 0.9%
InBev N.V. (A)		291		34,888
Packaged Foods & Meats – 3.1%
Kraft Foods Group, Inc.		440		34,158
Mondelez International, Inc., Class A		898		36,500
Nestle S.A., Registered Shares (A)		520		43,508
				114,166
Soft Drinks – 1.7%
Coca-Cola Co. (The)		1,351		60,818
Tobacco – 2.5%
ITC Ltd. (A)		3,507		13,868
Philip Morris International, Inc.		699		77,585
				91,453
Total Consumer Staples – 8.2%				301,325

COMMON STOCKS (Continued)	Shares		Value
Energy
Oil & Gas Equipment & Services – 2.9%
Halliburton Co.		1,283	$	59,077
Schlumberger Ltd.		682		47,556
				106,633
Oil & Gas Exploration & Production – 4.5%
Cabot Oil & Gas Corp.		1,330		35,579
EOG Resources, Inc.		651		63,001
Noble Energy, Inc.		1,291		36,599
Pioneer Natural Resources Co.		191		28,159
				163,338
Oil & Gas Refining & Marketing – 1.2%
Phillips 66		497		45,568
Total Energy – 8.6%				315,539
Financials
Diversified Banks – 2.7%
Axis Bank Ltd. (A)		4,152		32,360
China Construction Bank Corp. (A)		13,444		11,152
Industrial and Commercial Bank of China Ltd., H Shares (A)		16,181		12,014
Wells Fargo & Co.		762		41,997
				97,523
Investment Banking & Brokerage – 1.1%
Goldman Sachs Group, Inc. (The) (G)		178		42,334
Life & Health Insurance – 3.2%
AIA Group Ltd. (A)		10,223		75,380
MetLife, Inc.		744		38,630
MetLife, Inc. (B)		68		4,110
				118,120
Multi-Line Insurance – 1.5%
Axa S.A. (A)		1,794		54,271
Multi-Sector Holdings – 0.9%
Berkshire Hathaway, Inc., Class B (B)		174		31,879
Other Diversified Financial Services – 2.7%
JPMorgan Chase & Co.		1,038		99,122
Property & Casualty Insurance – 0.5%
Tokio Marine Holdings, Inc. (A)		453		17,720
Regional Banks – 1.4%
PNC Financial Services Group, Inc. (The)		375		50,536
Total Financials – 14.0%				511,505
Health Care
Biotechnology – 1.2%
Alexion Pharmaceuticals, Inc. (B)		300		42,112

COMMON STOCKS (Continued)	Shares		Value
Health Care Facilities – 0.9%
HCA Holdings, Inc. (B)		420	$	33,394
Pharmaceuticals – 3.0%
Bayer AG (A)		293		39,920
Pfizer, Inc.		1,964		70,129
				110,049
Total Health Care – 5.1%				185,555
Industrials
Aerospace & Defense – 3.8%
Airbus SE (A)		627		59,563
Lockheed Martin Corp. (G)		198		61,392
United Technologies Corp.		166		19,293
				140,248
Construction & Engineering – 1.9%
Larsen & Toubro Ltd. (A)		2,046		35,770
Vinci (A)		348		33,102
				68,872
Construction Machinery & Heavy Trucks – 1.3%
PACCAR, Inc.		682		49,307
Electrical Components & Equipment – 0.9%
Schneider Electric S.A. (A)		372		32,350
Industrial Conglomerates – 1.1%
Siemens AG (A)		290		40,841
Industrial Machinery – 1.2%
Parker Hannifin Corp.		242		42,320
Railroads – 1.0%
Union Pacific Corp.		310		35,904
Trading Companies & Distributors – 0.6%
Ferguson plc (A)		337		22,083
Total Industrials – 11.8%				431,925
Information Technology
Application Software – 3.5%
Adobe Systems, Inc. (B)		520		77,559
Intuit, Inc.		365		51,825
				129,384
Data Processing & Outsourced Services – 2.3%
FleetCor Technologies, Inc. (B)		161		24,912
Visa, Inc., Class A		561		59,050
				83,962
Electronic Equipment & Instruments – 0.5%
Keyence Corp. (A)		36		19,063
Internet Software & Services – 5.1%
Alibaba Group Holding Ltd. ADR (B)		407		70,258
Alphabet, Inc., Class A (B)(G)		65		63,097

10 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Internet Software & Services (Continued)
Facebook, Inc., Class A (B)		83	$	14,124
MercadoLibre, Inc.		147		38,166
				185,645
Semiconductor Equipment – 1.2%
ASML Holding N.V., Ordinary Shares (A)		266		45,350
Semiconductors – 0.2%
Renesas Electronics Corp. (A)(B)		527		5,744
Systems Software – 2.6%
Microsoft Corp.		1,249		93,020
Total Information Technology – 15.4%				562,168
Materials
Diversified Metals & Mining – 1.6%
BHP Billiton plc (A)		1,197		21,084
Rio Tinto plc (A)		817		38,043
				59,127
Total Materials – 1.6%				59,127
Telecommunication Services
Integrated Telecommunication Services – 1.0%
Nippon Telegraph and Telephone Corp. (A)		809		37,085
Total Telecommunication Services – 1.0%				37,085
TOTAL COMMON STOCKS – 76.4%			$	2,796,670
(Cost: $2,773,502)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Notional Amount
Broadcom Corp., Class A,
Call $270.00, Expires 11–17–17, OTC (Ctrpty: UBS AG)		2,847		285		448
TOTAL PURCHASED OPTIONS – 0.0%					$	448
(Cost: $1,014)

CORPORATE DEBT SECURITIES	Principal
Financials
Diversified Banks – 0.6%
Royal Bank of Scotland Group plc (The):
7.500%, 12–29–49	$	14,766	15,464
8.625%, 12–29–49		6,547	7,259
			22,723
Total Financials – 0.6%			22,723

	Principal		Value
TOTAL CORPORATE DEBT SECURITIES – 0.6%			$	22,723
(Cost: $20,689)
OTHER GOVERNMENT SECURITIES (H)
Brazil – 1.6%
Brazil Notas do Tesouro Nacional, 10.000%, 1–1–21 (I)		BRL178,259		58,363
Mexico – 2.9%
Mexican Bonos:
10.000%, 12–5–24 (I)		MXN824,607		53,618
5.750%, 3–5–26 (I)		1,033,419		52,915
				106,533
TOTAL OTHER GOVERNMENT SECURITIES – 4.5%			$	164,896
(Cost: $163,555)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations – 4.1%
U.S. Treasury Notes:
0.125%, 4–15–21	$	27,620		27,693
0.625%, 1–15–26		67,091		67,956
0.125%, 7–15–26		5,138		4,993
1.000%, 2–15–46		47,051		47,671
				148,313
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 4.1%			$	148,313
(Cost: $151,403)
BULLION – 5.7%	Troy Ounces
Gold		161		206,411
(Cost: $191,012)
SHORT-TERM SECURITIES	Principal
Commercial Paper (J) – 6.0%
Army & Air Force Exchange Service,
1.130%, 10–2–17	$	6,200		6,199
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.),
1.180%, 10–5–17		5,000		4,999
E.I. du Pont de Nemours and Co.:
1.300%, 10–6–17		1,125		1,125
1.460%, 10–18–17		30,039		30,017
Emerson Electric Co.,
1.190%, 10–2–17		10,000		9,999
Essilor International S.A.,
1.270%, 10–16–17		10,000		9,994

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (J) (Continued)
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.),
1.331%, 10–3–17	$	15,000	$	14,998
International Paper Co.,
1.500%, 10–11–17		10,000		9,995
J.M. Smucker Co. (The),
1.371%, 10–6–17		22,000		21,994
Kellogg Co.,
1.490%, 10–12–17		13,500		13,493
L Oreal USA, Inc.,
1.170%, 10–2–17		25,000		24,998
Medtronic Global Holdings SCA:
1.252%, 10–3–17		2,215		2,215
1.530%, 10–16–17		10,000		9,993
Mondelez International, Inc.,
1.341%, 10–5–17		6,000		5,999
Rockwell Automation, Inc.:
1.240%, 10–3–17		10,000		9,998
1.200%, 10–6–17		5,000		4,999
Sysco Corp.,
1.350%, 10–2–17		8,167		8,166
Walgreens Boots Alliance, Inc.:
1.360%, 10–5–17		10,000		9,998
1.500%, 10–11–17		20,000		19,991
				219,170
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (K)		1,887		1,887
Municipal Obligations – 1.8%
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by FNMA) (BVAL plus 10 bps),
0.990%, 10–7–17 (K)		12,875		12,875
LA Pub Fac Auth, Var Rate Rev Rfdg Bonds (CHRISTUS Hlth), Ser 2009B-1 (GTD by Bank of New York Mellon (The)) (BVAL plus 25 bps),
0.930%, 10–7–17 (K)		4,000		4,000
NY Metro Trans Auth, Trans Rev Var Rate Bonds, Ser 2005E-3 (GTD by Bank of Montreal) (BVAL plus 21 bps),
0.950%, 10–7–17 (K)		12,000		12,000
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.) (BVAL plus 20 bps),
1.250%, 10–7–17 (K)		12,700		12,700
NYC Hsng Dev Corp., Multi-Fam Mtg Rev Bonds (Spring Creek Apt I and II), Ser 2006A (GTD by FHLMC) (BVAL plus 14 bps),
0.990%, 10–7–17 (K)		14,000		14,000

2017 SEMIANNUAL REPORT 11

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

SEPTEMBER 30, 2017 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
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),
0.950%, 10–7–17 (K)	$	2,800	$	2,800
Trap Rock Industries, Inc., Var Demand Bonds, Ser 2005 (GTD by Wachovia Bank N.A.) (1-Week U.S. LIBOR plus 10 bps),
1.230%, 10–7–17 (K)		8,365		8,365
				66,740
United States Government Agency Obligations – 0.7%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
1.120%, 10–7–17 (K)		7,900		7,900

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations (Continued)
1.130%, 10–7–17 (K)	$	18,433	$	18,433
				26,333
TOTAL SHORT-TERM SECURITIES – 8.6%			$	314,130
(Cost: $314,149)
TOTAL INVESTMENT SECURITIES – 99.9%			$	3,653,591
(Cost: $3,615,324)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1%				4,255
NET ASSETS – 100.0%			$	3,657,846

Notes to Consolidated Schedule of Investments

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

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

(C) Restricted securities. At September 30, 2017, the Fund owned the following restricted securities:

Security	Acquisition Date(s)		Shares		Cost		Market Value
Liberty Media Corp., Class C		1–23–17		1,058	$	27,499	$	39,814
Media Group Holdings LLC, Series H		8–29–13 to 10–31–13		640		448,211		3,000
Media Group Holdings LLC, Series T		7–2–13 to 1–23–15		80		168,531		15,140
					$	644,241	$	57,954

    The total value of these securities represented 1.6% of net assets at September 30, 2017.

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

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

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

(G) All or a portion of securities with an aggregate value of $75,821 are held in collateralized accounts to cover potential obligations with respect to outstanding written options.

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

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

(J) Rate shown is the yield to maturity at September 30, 2017.

12 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

(K) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 total return swap agreements were outstanding at September 30, 2017:

Underlying Security

Counterparty

Maturity Date

Notional Amount(I)

Financing Fee(1)(2)

Value

Upfront Payments/ (Receipts)

Unrealized Appreciation

Euro STOXX Bank Index

Morgan Stanley & Co. International plc

12/08/2017

EUR77,562

3-Month Euribor plus 40 bps

$

5,361

$

—

$

5,361

(1) The Fund pays the financing fee multiplied by the notional amount each month.

(2) At the termination date, a net cash flow is exchanged where the market-linked total return is equivalent to the return of the underlying security less a financing rate, if any. As the payer, a Fund would owe payments on any net positive total return, and would receive payments in the event of a negative total return.

The following written options were outstanding at September 30, 2017 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type		Number of Contracts		Notional Amount		Expiration Month		Exercise Price		Premium Received		Value
Broadcom Corp., Class A	UBS AG		Put		2,257		225		November 2017	$	230.00	$	1,067	$	(982	)
	UBS AG		Call		2,847		285		November 2017		300.00		128		(57	)
												$	1,195	$	(1,039	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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
Consumer Discretionary	$	334,487	$	39,813	$	18,140
Consumer Staples		301,325		—		—
Energy		315,539		—		—
Financials		511,505		—		—
Health Care		185,555		—		—
Industrials		431,926		—		—
Information Technology		562,168		—		—
Materials		59,127		—		—
Telecommunication Services		37,085		—		—
Total Common Stocks	$	2,738,717	$	39,813	$	18,140
Purchased Options		—		448		—
Corporate Debt Securities		—		22,723		—
Other Government Securities		—		164,896		—
United States Government Obligations		—		148,313		—
Bullion		206,411		—		—
Short-Term Securities		—		314,130		—
Total	$	2,945,128	$	690,323	$	18,140
Total Return Swaps	$	—	$	5,361	$	—
Liabilities
Written Options	$	—	$	1,039	$	—

During the period ended September 30, 2017, there were $240,767 transferred between Levels 3 and 2 due to increased availability of observable market data due to increased market activity or information for these securities. Transfers out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Level 1 and 2 during the period.

2017 SEMIANNUAL REPORT 13

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

SEPTEMBER 30, 2017 (UNAUDITED)

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

BVAL = Bloomberg Valuation Municipal AAA Benchmark

FHLMC = Federal Home Loan Mortgage Association

FNMA = Federal National Mortgage Association

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

OTC = Over the Counter

TB = Treasury Bill

Country Diversification

(as a % of net assets)
United States	52.8%
France	4.9%
Japan	4.2%
United Kingdom	3.8%
Germany	3.4%
Mexico	2.9%
Brazil	2.8%
China	2.5%
India	2.3%
Hong Kong	2.1%
Switzerland	1.8%
Netherlands	1.2%
Other Countries	0.9%
Other+	14.4%

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

See Accompanying Notes to Financial Statements.

14 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY BALANCED FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	68.4%
Information Technology	13.1%
Financials	12.7%
Health Care	12.1%
Consumer Discretionary	10.6%
Industrials	7.9%
Energy	5.6%
Materials	3.5%
Consumer Staples	2.4%
Real Estate	0.4%
Telecommunication Services	0.1%
Bonds	28.6%
Corporate Debt Securities	22.8%
United States Government and Government Agency Obligations	5.5%
Loans	0.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.0%

Lipper Rankings

Category: Mixed-Asset Target Allocation Growth Funds	Rank	Percentile
1 Year	485/503		97
3 Year	418/450		93
5 Year	358/420		86
10 Year	60/313		20
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector	Industry
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
JPMorgan Chase & Co.	Financials	Other Diversified Financial Services
Carnival Corp.	Consumer Discretionary	Hotels, Resorts & Cruise Lines
Autodesk, Inc.	Information Technology	Application Software
Microsoft Corp.	Information Technology	Systems Software
PNC Financial Services Group, Inc. (The)	Financials	Regional Banks
Union Pacific Corp.	Industrials	Railroads
Intercontinental Exchange, Inc.	Financials	Financial Exchanges & Data
Las Vegas Sands, Inc.	Consumer Discretionary	Casinos & Gaming
PPG Industries, Inc.	Materials	Specialty Chemicals

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

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

2017 SEMIANNUAL REPORT 15

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Automotive Retail – 0.5%
O’Reilly Automotive, Inc. (A)		42	$	9,078
Cable & Satellite – 1.3%
Comcast Corp., Class A		652		25,085
Casinos & Gaming – 1.7%
Las Vegas Sands, Inc.		514		32,959
General Merchandise Stores – 0.7%
Dollar General Corp.		163		13,207
Home Improvement Retail – 1.5%
Lowe’s Co., Inc.		363		29,040
Hotels, Resorts & Cruise Lines – 2.4%
Carnival Corp.		715		46,142
Movies & Entertainment – 1.4%
Twenty-First Century Fox, Inc.		1,053		27,163
Restaurants – 1.1%
YUM! Brands, Inc.		299		22,020
Total Consumer Discretionary – 10.6%				204,694
Consumer Staples
Brewers – 1.1%
Anheuser-Busch InBev S.A. ADR		176		21,033
Drug Retail – 0.4%
CVS Caremark Corp.		103		8,396
Packaged Foods & Meats – 0.9%
Kraft Foods Group, Inc.		232		17,969
Total Consumer Staples – 2.4%				47,398
Energy
Integrated Oil & Gas – 1.5%
Chevron Corp.		242		28,465
Oil & Gas Equipment & Services – 1.2%
Schlumberger Ltd.		337		23,530
Oil & Gas Exploration & Production – 1.5%
Newfield Exploration Co. (A)		452		13,414
Noble Energy, Inc.		563		15,974
				29,388
Oil & Gas Refining & Marketing – 0.4%
Phillips 66		91		8,309
Total Energy – 4.6%				89,692
Financials
Diversified Banks – 2.3%
Northern Trust Corp.		249		22,909
Wells Fargo & Co.		391		21,558
				44,467

COMMON STOCKS (Continued)	Shares		Value
Financial Exchanges & Data – 1.8%
Intercontinental Exchange, Inc.		508	$	34,917
Investment Banking & Brokerage – 1.5%
Goldman Sachs Group, Inc. (The)		127		30,088
Life & Health Insurance – 1.5%
MetLife, Inc.		515		26,734
MetLife, Inc. (A)		47		2,844
				29,578
Other Diversified Financial Services – 2.6%
JPMorgan Chase & Co.		525		50,138
Regional Banks – 1.9%
PNC Financial Services Group, Inc. (The)		273		36,758
Total Financials – 11.6%				225,946
Health Care
Biotechnology – 2.6%
Biogen, Inc. (A)		84		26,208
BioMarin Pharmaceutical, Inc. (A)		129		12,006
Shire Pharmaceuticals Group plc ADR		79		12,081
				50,295
Health Care Services – 1.4%
Laboratory Corp. of America Holdings (A)		185		27,997
Managed Health Care – 2.1%
Anthem, Inc.		60		11,298
UnitedHealth Group, Inc.		155		30,327
				41,625
Pharmaceuticals – 3.0%
Allergan plc		115		23,651
Pfizer, Inc.		756		26,993
Teva Pharmaceutical Industries Ltd. ADR		408		7,185
				57,829
Total Health Care – 9.1%				177,746
Industrials
Aerospace & Defense – 0.9%
United Technologies Corp.		150		17,429
Building Products – 1.0%
Johnson Controls, Inc.		467		18,796
Construction Machinery & Heavy Trucks – 1.4%
Allison Transmission Holdings, Inc.		265		9,955
PACCAR, Inc.		237		17,130
				27,085

COMMON STOCKS (Continued)	Shares		Value
Industrial Machinery – 0.9%
Parker Hannifin Corp.		104	$	18,237
Railroads – 1.8%
Union Pacific Corp.		306		35,516
Trucking – 1.2%
Knight Transportation, Inc. (A)		563		23,391
Total Industrials – 7.2%				140,454
Information Technology
Application Software – 2.3%
Autodesk, Inc. (A)		411		46,111
Data Processing & Outsourced Services – 1.3%
MasterCard, Inc., Class A		175		24,675
IT Consulting & Other Services – 1.5%
Cognizant Technology Solutions Corp., Class A		393		28,504
Semiconductor Equipment – 0.9%
Applied Materials, Inc.		328		17,093
Semiconductors – 2.4%
Integrated Device Technology, Inc. (A)		442		11,744
Intel Corp.		782		29,794
QUALCOMM, Inc.		113		5,881
				47,419
Systems Software – 2.0%
Microsoft Corp.		517		38,519
Technology Hardware, Storage & Peripherals – 2.7%
Apple, Inc.		345		53,107
Total Information Technology – 13.1%				255,428
Materials
Commodity Chemicals – 1.1%
Valvoline, Inc.		869		20,368
Specialty Chemicals – 1.6%
PPG Industries, Inc.		293		31,794
Total Materials – 2.7%				52,162
Real Estate
Specialized REITs – 0.4%
Crown Castle International Corp.		74		7,368
Total Real Estate – 0.4%				7,368
TOTAL COMMON STOCKS – 61.7%			$	1,200,888
(Cost: $951,815)

16 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

PREFERRED STOCKS	Shares		Value
Energy
Integrated Oil & Gas – 1.0%
Hess Corp., Convertible, 8.000%		320	$	18,867
Total Energy – 1.7%				18,867
Financials
Investment Banking & Brokerage – 0.4%
Morgan Stanley, 5.850%		300		8,202
Other Diversified Financial Services – 0.5%
Citigroup, Inc., 6.300%		357		9,703
Regional Banks – 0.2%
First Republic Bank, Series G, 5.500%		120		3,136
Total Financials – 1.1%				21,041
Health Care
Managed Health Care – 0.9%
Anthem, Inc., 5.250%		342		17,883
Pharmaceuticals – 2.1%
Allergan plc, Convertible Series A, 5.500%		36		26,267
Teva Pharmaceutical Industries Ltd., Convertible, 7.000%		41		14,130
				40,397
Total Health Care – 3.0%				58,280
Industrials
Environmental & Facilities Services – 0.7%
Stericycle, Inc., 5.250%		225		13,239
Total Industrials – 0.7%				13,239
Materials
Commodity Chemicals – 0.8%
A. Schulman, Inc., Convertible, 6.000%		19		16,464
Total Materials – 0.8%				16,464
Telecommunication Services
Integrated Telecommunication Services – 0.1%
Frontier Communications Corp., Convertible Series A, 11.125%		125		2,405
Total Telecommunication Services – 0.1%				2,405
TOTAL PREFERRED STOCKS – 6.7%			$	130,296
(Cost: $170,574)

CORPORATE DEBT SECURITIES	Principal		Value
Consumer Discretionary
Apparel, Accessories & Luxury Goods – 0.5%
Under Armour, Inc.,
3.250%, 6–15–26	$	9,500	$	8,829
Auto Parts & Equipment – 0.2%
Lear Corp.,
3.800%, 9–15–27		3,250		3,236
Automobile Manufacturers – 0.1%
General Motors Co.,
4.200%, 10–1–27		1,250		1,268
Broadcasting – 0.2%
Discovery Communications LLC:
3.300%, 5–15–22		900		907
2.950%, 3–20–23		1,000		1,001
3.950%, 3–20–28		2,750		2,742
				4,650
General Merchandise Stores – 0.0%
Dollar General Corp.,
1.875%, 4–15–18		1,000		1,001
Homebuilding – 0.1%
Toll Brothers Finance Corp.,
4.375%, 4–15–23		1,500		1,568
Hotels, Resorts & Cruise Lines – 0.1%
Wyndham Worldwide Corp.:
4.150%, 4–1–24		1,000		1,014
4.500%, 4–1–27		2,000		2,006
				3,020
Internet & Direct Marketing Retail – 0.2%
Amazon.com, Inc.,
2.800%, 8–22–24 (B)		3,000		3,005
Publishing – 0.1%
Thomson Reuters Corp.,
3.350%, 5–15–26		2,000		1,991
Total Consumer Discretionary – 1.5%				28,568
Consumer Staples
Brewers – 0.1%
Molson Coors Brewing Co.,
3.000%, 7–15–26		1,500		1,458
Distillers & Vintners – 0.0%
Beam, Inc.,
1.750%, 6–15–18		1,000		999
Household Products – 0.1%
Clorox Co. (The),
3.100%, 10–1–27		1,500		1,492
Tobacco – 0.2%
BAT International Finance plc, 2.750%, 6–15–20 (B)		4,000		4,064
Total Consumer Staples – 0.4%				8,013

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Energy
Integrated Oil & Gas – 0.4%
Hess Corp.,
4.300%, 4–1–27	$	7,500	$	7,462
Oil & Gas Drilling – 0.7%
Nabors Industries Ltd., Convertible,
0.750%, 1–15–24 (B)		16,500		13,417
Oil & Gas Equipment & Services – 0.2%
Schlumberger Holding Corp.,
2.350%, 12–21–18 (B)		4,500		4,525
Oil & Gas Exploration & Production – 0.9%
BP Capital Markets plc (GTD by BP plc):
2.241%, 9–26–18		4,250		4,275
2.315%, 2–13–20		3,000		3,026
Concho Resources, Inc.,
4.375%, 1–15–25		6,500		6,841
ONEOK Partners L.P.,
3.200%, 9–15–18		2,750		2,783
				16,925
Oil & Gas Storage & Transportation – 1.4%
Colorado Interstate Gas Co.,
4.150%, 8–15–26 (B)		5,000		4,970
Hornbeck Offshore Services, Inc., Convertible,
1.500%, 9–1–19		11,621		9,064
Kinder Morgan, Inc.,
3.150%, 1–15–23		2,000		2,009
Plains All American Pipeline L.P. and PAA Finance Corp.,
4.650%, 10–15–25		3,500		3,603
Sunoco Logistics Partners Operations L.P. (GTD by Energy Transfer Partners L.P.),
4.000%, 10–1–27		1,000		996
Williams Partners L.P.,
3.600%, 3–15–22		5,500		5,681
				26,323
Total Energy – 3.6%				68,652
Financials
Asset Management & Custody Banks – 0.3%
Ares Capital Corp.,
4.875%, 11–30–18		6,500		6,684
Consumer Finance – 0.7%
Capital One Bank USA N.A.:
2.150%, 11–21–18		3,150		3,158
2.250%, 2–13–19		4,000		4,011
Ford Motor Credit Co. LLC:
3.339%, 3–28–22		2,500		2,540
2.979%, 8–3–22		1,000		999
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.):
3.450%, 4–10–22		1,000		1,016
3.700%, 5–9–23		1,050		1,070

2017 SEMIANNUAL REPORT 17

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Finance (Continued)
Hyundai Capital America,
2.875%, 8–9–18 (B)	$	1,550	$	1,558
				14,352
Diversified Banks – 4.5%
Australia and New Zealand Banking Group Ltd.,
4.400%, 5–19–26 (B)		7,150		7,437
Bank of America Corp.:
2.000%, 1–11–18		2,500		2,503
4.000%, 1–22–25		750		776
8.000%, 7–29–49		10,000		10,143
Barclays plc,
5.200%, 5–12–26		5,000		5,338
BNP Paribas S.A.,
2.450%, 3–17–19		4,500		4,539
DBS Group Holdings Ltd.,
2.246%, 7–16–19 (B)		5,000		5,009
HSBC Holdings plc,
3.400%, 3–8–21		5,000		5,155
ING Bank N.V.,
2.500%, 10–1–19 (B)		1,300		1,311
Mizuho Bank Ltd.,
2.650%, 9–25–19 (B)		5,200		5,248
Skandinaviska Enskilda Banken AB,
2.375%, 3–25–19 (B)		4,000		4,029
Societe Generale S.A.,
4.250%, 4–14–25 (B)		2,750		2,818
Standard Chartered plc,
2.250%, 4–17–20 (B)		10,700		10,676
Sumitomo Mitsui Banking Corp.,
2.450%, 1–16–20		4,000		4,031
U.S. Bancorp,
3.100%, 4–27–26		2,500		2,487
Wells Fargo & Co.,
7.980%, 3–29–49		10,000		10,300
Westpac Banking Corp.,
2.250%, 7–30–18		5,000		5,024
				86,824
Investment Banking & Brokerage – 1.1%
BGC Partners, Inc.,
5.375%, 12–9–19		2,500		2,631
Credit Suisse Group Funding (Guernsey) Ltd.,
2.750%, 3–26–20		4,000		4,041
Goldman Sachs Group, Inc. (The):
2.905%, 7–24–23		3,000		3,001
3.272%, 9–29–25		4,000		4,002
5.700%, 12–29–49		1,300		1,344
Morgan Stanley,
3.591%, 7–22–28		5,000		5,007
				20,026
Life & Health Insurance – 0.5%
AIA Group Ltd.,
2.250%, 3–11–19 (B)		2,600		2,596
Northwestern Mutual Life Insurance Co. (The),
3.850%, 9–30–47 (B)		2,000		1,976
Prudential Financial, Inc.,
8.875%, 6–15–38		1,600		1,676

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Life & Health Insurance (Continued)
Sumitomo Life Insurance Co.,
4.000%, 9–14–77 (B)	$	3,000	$	2,945
				9,193
Multi-Line Insurance – 0.5%
American International Group, Inc.,
2.300%, 7–16–19		2,750		2,763
Aon plc (GTD by Aon Corp.),
2.800%, 3–15–21		6,000		6,024
				8,787
Other Diversified Financial Services – 2.1%
Citigroup, Inc.:
5.800%, 11–29–49		8,500		8,776
5.950%, 12–29–49		9,250		9,947
Fidelity National Information Services, Inc.,
2.000%, 4–15–18		1,250		1,252
JPMorgan Chase & Co.:
7.900%, 4–29–49		8,200		8,446
5.000%, 12–29–49		4,500		4,576
5.300%, 11–1–65		1,500		1,564
PennantPark Investment Corp.,
4.500%, 10–1–19		5,000		5,059
Total Capital (GTD by Total S.A.),
2.125%, 8–10–18		1,500		1,507
				41,127
Property & Casualty Insurance – 0.1%
Berkshire Hathaway Finance Corp. (GTD by Berkshire Hathaway, Inc.),
2.200%, 3–15–21		2,300		2,315
Regional Banks – 1.1%
Citizens Financial Group, Inc.,
3.750%, 7–1–24		8,900		8,903
PNC Bank N.A.,
3.250%, 6–1–25		4,000		4,082
SunTrust Banks, Inc.:
2.350%, 11–1–18		3,700		3,719
5.625%, 12–29–49		4,800		5,016
				21,720
Specialized Finance – 0.3%
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.,
5.450%, 6–15–23 (B)		6,000		6,581
Total Financials – 11.2%				217,609
Health Care
Biotechnology – 0.3%
Amgen, Inc.,
2.125%, 5–1–20		6,000		6,011
Health Care Equipment – 0.2%
Zimmer Holdings, Inc.,
2.700%, 4–1–20		3,000		3,030

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care Services – 0.5%
Cardinal Health, Inc.,
2.400%, 11–15–19	$	3,900	$	3,930
Quest Diagnostics, Inc.,
3.450%, 6–1–26		5,000		5,043
				8,973
Health Care Supplies – 0.2%
Shire Acquisitions Investments Ireland Designated Activity Co.,
2.875%, 9–23–23		5,000		4,974
Pharmaceuticals – 0.5%
AbbVie, Inc.,
3.200%, 5–14–26		3,500		3,506
Forest Laboratories, Inc.,
5.000%, 12–15–21 (B)		4,500		4,917
Mylan, Inc.,
2.550%, 3–28–19		700		703
				9,126
Total Health Care – 1.7%				32,114
Industrials
Aerospace & Defense – 0.5%
Huntington Ingalls Industries, Inc.,
5.000%, 11–15–25 (B)		4,000		4,320
TransDigm, Inc. (GTD by TransDigm Group, Inc.),
6.375%, 6–15–26		5,500		5,634
				9,954
Airlines – 0.1%
Southwest Airlines Co.,
2.650%, 11–5–20		2,900		2,938
Diversified Support Services – 0.0%
Ahern Rentals, Inc.,
7.375%, 5–15–23 (B)		1,118		1,023
Industrial Conglomerates – 0.1%
3M Co.,
2.875%, 10–15–27		1,500		1,492
Railroads – 0.1%
Kansas City Southern de Mexico S.A. de C.V.,
2.350%, 5–15–20		873		870
Total Industrials – 0.8%				16,277
Information Technology
Data Processing & Outsourced Services – 0.1%
Fiserv, Inc.,
2.700%, 6–1–20		2,900		2,933
IT Consulting & Other Services – 0.1%
Keysight Technologies, Inc.,
4.600%, 4–6–27		2,500		2,629

18 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Semiconductors – 0.1%
Micron Technology, Inc.,
5.500%, 2–1–25	$	2,122	$	2,263
Total Information Technology – 0.3%				7,825
Materials
Construction Materials – 0.2%
Hillman Group, Inc. (The),
6.375%, 7–15–22 (B)		5,000		4,975
Diversified Metals & Mining – 0.1%
Anglo American plc,
4.125%, 4–15–21 (B)		2,200		2,287
Metal & Glass Containers – 0.4%
BakerCorp International, Inc.,
8.250%, 6–1–19		7,747		7,205
Paper Packaging – 0.2%
WestRock Co.,
3.000%, 9–15–24 (B)		3,500		3,494
Total Materials – 0.9%				17,961
Real Estate
Specialized REITs – 0.3%
Crown Castle International Corp.:
5.250%, 1–15–23		1,046		1,158
3.200%, 9–1–24		500		497
3.700%, 6–15–26		2,600		2,618
3.650%, 9–1–27		2,000		1,998
				6,271
Total Real Estate – 0.3%				6,271
Telecommunication Services
Integrated Telecommunication Services – 0.4%
AT&T, Inc.:
4.125%, 2–17–26		900		925
3.900%, 8–14–27		2,000		2,002
4.900%, 8–14–37		1,000		1,012
5.150%, 2–14–50		1,500		1,511
Verizon Communications, Inc.,
4.500%, 8–10–33		2,000		2,051
				7,501
Wireless Telecommunication Service – 0.6%
American Tower Corp.:
2.250%, 1–15–22		7,500		7,376
4.700%, 3–15–22		1,400		1,517
3.375%, 10–15–26		3,000		2,964
Virgin Media Finance plc,
4.875%, 2–15–22		284		276
				12,133
Total Telecommunication Services – 1.0%				19,634

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Utilities
Electric Utilities – 0.6%
Duke Energy Corp.,
3.150%, 8–15–27	$	1,000	$	991
Electricite de France S.A.,
2.150%, 1–22–19 (B)		3,750		3,764
Entergy Texas, Inc.,
2.550%, 6–1–21		2,400		2,382
Exelon Corp.,
2.450%, 4–15–21		2,500		2,500
PPL Energy Supply LLC,
4.600%, 12–15–21		2,800		2,303
				11,940
Independent Power Producers & Energy Traders – 0.5%
Canadian Solar, Inc., Convertible,
4.250%, 2–15–19		9,700		9,372
Total Utilities – 1.1%				21,312
TOTAL CORPORATE DEBT SECURITIES – 22.8%			$	444,236
(Cost: $440,461)
LOANS (C)
Industrials
Industrial Machinery – 0.3%
Dynacast International LLC (ICE LIBOR plus 850 bps),
9.833%, 1–30–23 (D)		6,526		6,526
Total Industrials – 0.3%				6,526
TOTAL LOANS – 0.3%			$	6,526
(Cost: $6,415)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations – 1.5%
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates:
4.500%, 6–1–44		5,880		6,334
3.000%, 6–15–45		6,931		7,141
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
5.000%, 1–1–18		1		1
6.500%, 10–1–28		31		34
6.500%, 2–1–29		5		5
3.500%, 6–25–29		4,018		4,222
7.000%, 11–1–31		41		46
6.500%, 2–1–32		31		35
7.000%, 2–1–32		46		53
7.000%, 3–1–32		21		24
7.000%, 7–1–32		25		28
6.500%, 9–1–32		25		28
5.500%, 5–1–33		19		22
5.500%, 6–1–33		18		20
4.500%, 11–1–43		5,001		5,466

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
3.000%, 10–25–46	$	6,723	$	6,873
				30,332
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 1.5%			$	30,332
(Cost: $30,881)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations – 3.4%
U.S. Treasury Notes:
0.125%, 7–15–26		24,509		23,818
2.125%, 2–15–40		21,745		27,331
1.000%, 2–15–46		14,463		14,654
				65,803
Treasury Obligations – 0.6%
U.S. Treasury Notes:
1.875%, 7–31–22		2,000		1,995
2.125%, 7–31–24		3,000		2,994
2.250%, 8–15–27		6,500		6,453
				11,442
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 4.0%			$	77,245
(Cost: $79,393)
SHORT-TERM SECURITIES
Commercial Paper (E) – 1.4%
BorgWarner, Inc.,
1.380%, 10–5–17		9,000		8,998
J.M. Smucker Co. (The),
1.371%, 10–6–17		5,000		4,999
Kroger Co. (The),
1.300%, 10–2–17		3,301		3,301
McCormick & Co., Inc.,
1.580%, 10–10–17		10,000		9,995
				27,293
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (F)		1,103		1,103
Municipal Obligations – 0.5%
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.) (BVAL plus 7 bps),
0.890%, 10–7–17 (F)		5,000		5,000
NY Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2012A (GTD by Bank of America N.A.) (BVAL plus 18 bps),
0.970%, 10–7–17 (F)		4,500		4,500
				9,500
TOTAL SHORT-TERM SECURITIES – 2.0%			$	37,896
(Cost: $37,898)

2017 SEMIANNUAL REPORT 19

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

	Value
TOTAL INVESTMENT SECURITIES – 99.0%	$	1,927,419
(Cost: $1,717,437)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.0%		19,505
NET ASSETS – 100.0%	$	1,946,924

Notes to Schedule of Investments

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

(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 September 30, 2017 the total value of these securities amounted to $106,945 or 5.5% of net assets.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

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

(E) Rate shown is the yield to maturity at September 30, 2017.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	1,200,888	$	—	$	—
Preferred Stocks		113,832		16,464		—
Corporate Debt Securities		—		444,236		—
Loans		—		—		6,526
United States Government Agency Obligations		—		30,332		—
United States Government Obligations		—		77,245		—
Short-Term Securities		—		37,896		—
Total	$	1,314,720	$	606,173	$	6,526

During the period ended September 30, 2017, there were no transfers between any levels.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

BVAL = Bloomberg Valuation Municipal AAA Benchmark

GTD = Guaranteed

ICE = IntercontinentalExchange

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

20 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY ENERGY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	98.3%
Energy	96.4%
Information Technology	1.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.7%

Lipper Rankings

Category: Natural Resources Funds	Rank	Percentile
1 Year	84/92		91
3 Year	51/82		62
5 Year	29/68		43
10 Year	26/59		44

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

Country Weightings

North America	91.0%
United States	88.8%
Other North America	2.2%
Europe	5.6%
Bahamas/Caribbean	1.7%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.7%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Halliburton Co.	United States	Energy	Oil & Gas Equipment & Services
RPC, Inc.	United States	Energy	Oil & Gas Equipment & Services
Schlumberger Ltd.	United States	Energy	Oil & Gas Equipment & Services
EOG Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Continental Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Pioneer Natural Resources Co.	United States	Energy	Oil & Gas Exploration & Production
Parsley Energy, Inc., Class A	United States	Energy	Oil & Gas Exploration & Production
Cimarex Energy Co.	United States	Energy	Oil & Gas Exploration & Production
Concho Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Diamondback Energy, Inc.	United States	Energy	Oil & Gas Exploration & Production

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

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

2017 SEMIANNUAL REPORT 21

SCHEDULE OF INVESTMENTS IVY ENERGY FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Energy
Integrated Oil & Gas – 4.4%
Chevron Corp.		70	$	8,190
Royal Dutch Shell plc, Class A (A)		208		6,296
Suncor Energy, Inc.		163		5,701
				20,187
Oil & Gas Drilling – 4.3%
Nabors Industries Ltd.		999		8,065
Patterson-UTI Energy, Inc.		578		12,104
				20,169
Oil & Gas Equipment & Services – 32.2%
Baker Hughes, Inc.		239		8,758
C&J Energy Services, Inc. (B)		214		6,428
Core Laboratories N.V.		103		10,191
Forum Energy Technologies, Inc. (B)		824		13,105
Halliburton Co.		493		22,698
Hi-Crush Partners L.P. (B)		354		3,367
Keane Group, Inc. (B)		429		7,153
RPC, Inc.		884		21,902
Schlumberger Ltd.		304		21,175
Superior Energy Services, Inc. (B)		1,119		11,951
U.S. Silica Holdings, Inc.		423		13,132
Weatherford International Ltd. (B)		2,035		9,320
				149,180
Oil & Gas Exploration & Production – 46.2%
Anadarko Petroleum Corp.		188		9,200
Cimarex Energy Co.		139		15,766
Concho Resources, Inc. (B)		119		15,708
Continental Resources, Inc. (B)		521		20,133
Devon Energy Corp.		336		12,342
Diamondback Energy, Inc. (B)		144		14,072
EOG Resources, Inc.		216		20,881
Laredo Petroleum Holdings, Inc. (B)		596		7,710

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Exploration & Production (Continued)
Marathon Oil Corp.		660	$	8,954
Newfield Exploration Co. (B)		366		10,871
Oasis Petroleum LLC (B)		1,152		10,510
Parsley Energy, Inc., Class A (B)		649		17,085
Pioneer Natural Resources Co.		116		17,152
RSP Permian, Inc. (B)		406		14,026
Whiting Petroleum Corp. (B)		1,436		7,841
WPX Energy, Inc. (B)		1,045		12,020
				214,271
Oil & Gas Refining & Marketing – 2.1%
Marathon Petroleum Corp.		66		3,704
Phillips 66		65		5,913
				9,617
Oil & Gas Storage & Transportation – 7.2%
Enbridge, Inc.		109		4,563
Energy Transfer Partners L.P.		147		2,686
Enterprise Products Partners L.P.		338		8,819
MPLX L.P.		74		2,587
Phillips 66 Partners L.P.		50		2,602
Plains GP Holdings L.P., Class A		203		4,438
Tallgrass Energy GP L.P., Class A		272		7,678
				33,373
Total Energy – 96.4%				446,797
Information Technology
Data Processing & Outsourced Services – 1.9%
Wright Express Corp. (B)		79		8,815
Total Information Technology – 1.9%				8,815
TOTAL COMMON STOCKS – 98.3%			$	455,612
(Cost: $422,428)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (C) – 1.7%
Kroger Co. (The),
1.300%, 10–2–17	$	4,692	$	4,691
McDonalds Corp.,
1.500%, 10–11–17		3,000		2,999
				7,690
Master Note – 0.0%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (D)		75		75
TOTAL SHORT-TERM SECURITIES – 1.7%			$	7,765
(Cost: $7,766)
TOTAL INVESTMENT SECURITIES – 100.0%			$	463,377
(Cost: $430,194)
LIABILITIES, NET OF CASH AND OTHER ASSETS – 0.0%				(15	)
NET ASSETS – 100.0%			$	463,362

Notes to Schedule of Investments

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

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

(C) Rate shown is the yield to maturity at September 30, 2017.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	455,612	$	—	$	—
Short-Term Securities		—		7,765		—
Total	$	455,612	$	7,765	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

22 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY ENERGY FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

The following acronym is used throughout this schedule:

LIBOR = London Interbank Offered Rate

Country Diversification
(as a % of net assets)
United States	88.8%
Canada	2.2%
Netherlands	2.2%
Switzerland	2.0%
Bermuda	1.7%
United Kingdom	1.4%
Other+	1.7%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 23

PORTFOLIO HIGHLIGHTS IVY LASALLE GLOBAL REAL ESTATE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	98.8%
Real Estate	98.8%
Rights	0.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.2%

Lipper Rankings

Category: Global Real Estate Funds	Rank	Percentile
1 Year	137/176		78
3 Year	125/136		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.

Country Weightings

North America	55.4%
United States	54.1%
Other North America	1.3%
Pacific Basin	25.7%
Japan	11.6%
Hong Kong	7.6%
Australia	5.6%
Other Pacific Basin	0.9%
Europe	17.7%
United Kingdom	5.9%
France	4.1%
Germany	3.5%
Other Europe	4.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.2%

Top 10 Equity Holdings

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

24 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Real Estate – 5.6%
GPT Group		157	$	611
Mirvac Group		540		969
National Storage REIT		136		160
Scentre Group		366		1,128
Vicinity Centres		299		624
Westfield Corp.		223		1,372
				4,864
Total Australia – 5.6%				4,864
Belgium
Real Estate – 0.3%
Warehouses De Pauw Comm VA		2		229
Total Belgium – 0.3%				229
Canada
Real Estate – 1.3%
Allied Properties		6		186
Canadian Apartment Properties REIT		4		115
Canadian REIT		6		228
First Capital Realty, Inc.		18		278
H&R Real Estate Investment Trust		9		154
RioCan		8		158
				1,119
Total Canada – 1.3%				1,119
France
Real Estate – 4.1%
Fonciere des Regions S.A.		3		282
Gecina		5		859
Unibail-Rodamco		9		2,308
				3,449
Total France – 4.1%				3,449
Germany
Real Estate – 3.5%
Ado Properties S.A.		4		174
alstria office AG		24		347
Deutsche EuroShop AG		8		290
LEG Immobilien AG		6		651
Vonovia SE		36		1,514
				2,976
Total Germany – 3.5%				2,976
Hong Kong
Real Estate – 7.6%
Hongkong Land Holdings Ltd.		182		1,310
Sun Hung Kai Properties Ltd.		227		3,688
Swire Properties Ltd.		404		1,369
				6,367
Total Hong Kong – 7.6%				6,367

COMMON STOCKS (Continued)	Shares			Value
Ireland
Real Estate – 0.4%
Hibernia REIT plc		124		$	224
Irish Residential Properties REIT plc		44			77
					301
Total Ireland – 0.4%					301
Japan
Real Estate – 11.6%
Daiwa Office Investment Corp.		—	*		425
Global One Corp.		—	*		156
Heiwa Real Estate Co. Ltd.		64			1,097
Ichigo Hotel Investment Corp.		—	*		232
Kenedix Office Investment Corp.		—	*		468
Mitsubishi Estate Co. Ltd.		133			2,312
Mitsubishi Estate Logistics REIT Investment Corp.		—	*		299
Mitsui Fudosan Co. Ltd.		165			3,227
Nomura Real Estate Holdings, Inc.		17			362
Sumitomo Realty & Development Co. Ltd.		35			1,059
					9,637
Total Japan – 11.6%					9,637
Netherlands
Real Estate – 0.6%
NSI N.V.		6			218
Vastned Retail N.V.		5			242
					460
Total Netherlands – 0.6%					460
Norway
Real Estate – 0.4%
Entra ASA		27			372
Total Norway – 0.4%					372
Singapore
Real Estate – 0.9%
CapitaCommercial Trust		184			224
CapitaLand Ltd.		184			486
					710
Total Singapore – 0.9%					710
Spain
Real Estate – 1.3%
Axiare Patrimonio Socimi S.A.		9			190
Lar Espana Real Estate Socimi S.A.		20			195
Merlin Properties Socimi S.A.		54			747
					1,132
Total Spain – 1.3%					1,132

COMMON STOCKS (Continued)	Shares		Value
Sweden
Real Estate – 0.6%
Kungsleden AB		68	$	471
Total Sweden – 0.6%				471
Switzerland
Real Estate – 0.6%
PSP Swiss Property Ltd., Registered Shares		5		498
Total Switzerland – 0.6%				498
United Kingdom
Real Estate – 5.9%
Assura plc		245		206
Big Yellow Group plc		44		444
Derwent London plc		33		1,232
Great Portland Estates plc		46		378
Intu Properties plc		61		190
Land Securities Group plc		135		1,754
SEGRO plc		55		394
Shaftesbury plc		31		416
				5,014
Total United Kingdom – 5.9%				5,014
United States
Real Estate – 54.1%
American Campus Communities, Inc.		31		1,369
American Homes 4 Rent		21		455
American Tower Corp., Class A		9		1,291
AvalonBay Communities, Inc.		16		2,849
Boston Properties, Inc.		19		2,320
Brixmor Property Group, Inc.		57		1,079
Camden Property Trust		16		1,448
Crown Castle International Corp.		10		1,014
CubeSmart		56		1,458
Digital Realty Trust, Inc.		5		603
Duke Realty Corp.		35		1,010
Equinix, Inc.		2		707
Equity Residential		57		3,785
Federal Realty Investment Trust		7		843
First Industrial Realty Trust, Inc.		15		440
GGP, Inc.		68		1,406
LaSalle Hotel Properties		35		1,008
Life Storage, Inc.		10		779
National Retail Properties, Inc.		21		870
Paramount Group, Inc.		48		767
Park Hotels & Resorts, Inc.		32		888
ProLogis, Inc.		11		716
Public Storage, Inc.		8		1,734
Quality Care Properties, Inc. (A)		5		78
Regency Centers Corp.		15		927
RLJ Lodging Trust		43		940
Simon Property Group, Inc.		32		5,166
SL Green Realty Corp.		14		1,415
Taubman Centers, Inc.		13		647
Ventas, Inc.		19		1,234

2017 SEMIANNUAL REPORT 25

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Real Estate (Continued)
VEREIT, Inc.		98	$	809
Vornado Realty Trust		30		2,293
Welltower, Inc.		42		2,977
				45,325
Total United States – 54.1%				45,325
TOTAL COMMON STOCKS – 98.8%			$	82,924
(Cost: $79,664)
RIGHTS
Singapore – 0.0%
CapitaLand Commercial Trust Management Ltd., expires 10–18–17		31		7
TOTAL RIGHTS – 0.0%			$	7
(Cost: $6)

SHORT-TERM SECURITIES	Principal		Value
Master Note – 0.4%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
1.450%, 10–4–17 (B)	$	344	$	344
TOTAL SHORT-TERM SECURITIES – 0.4%			$	344
(Cost: $344)
TOTAL INVESTMENT SECURITIES – 99.2%			$	83,275
(Cost: $80,014)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.8%				660
NET ASSETS – 100.0%			$	83,935

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	82,924	$	—	$	—
Rights		—		7		—
Short-Term Securities		—		344		—
Total	$	82,924	$	351	$	—

During the period ended September 30, 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 Trusts

Market Sector Diversification
(as a % of net assets)
Real Estate	98.8%
Other+	1.2%

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

See Accompanying Notes to Financial Statements.

26 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	99.0%
Real Estate	99.0%
Rights	0.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.0%

Lipper Rankings

Category: Global Real Estate Funds	Rank	Percentile
1 Year	172/176		98
3 Year	74/136		55

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

Country Weightings

North America	55.9%
United States	54.6%
Other North America	1.3%
Pacific Basin	24.5%
Japan	8.6%
Hong Kong	8.2%
Australia	6.8%
Other Pacific Basin	0.9%
Europe	18.6%
United Kingdom	6.6%
France	4.3%
Germany	3.7%
Other Europe	4.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.0%

Top 10 Equity Holdings

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

2017 SEMIANNUAL REPORT 27

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Real Estate – 6.8%
GPT Group		511	$	1,987
Scentre Group		535		1,649
Vicinity Centres		511		1,066
Westfield Corp.		381		2,346
				7,048
Total Australia – 6.8%				7,048
Canada
Real Estate – 1.3%
Allied Properties		8		248
Canadian Apartment Properties REIT		7		202
Canadian REIT		12		445
RioCan		18		350
SmartREIT		7		163
				1,408
Total Canada – 1.3%				1,408
France
Real Estate – 4.3%
Gecina		9		1,452
Unibail-Rodamco		12		2,958
				4,410
Total France – 4.3%				4,410
Germany
Real Estate – 3.7%
Ado Properties S.A.		7		350
alstria office AG		33		471
Deutsche EuroShop AG		16		596
Deutsche Wohnen AG		9		388
LEG Immobilien AG		19		1,943
				3,748
Total Germany – 3.7%				3,748
Hong Kong
Real Estate – 8.2%
Hongkong Land Holdings Ltd.		502		3,611
Link (The)		172		1,390
Swire Properties Ltd.		1,053		3,573
				8,574
Total Hong Kong – 8.2%				8,574
Ireland
Real Estate – 0.7%
Hibernia REIT plc		220		396
Irish Residential Properties REIT plc		154		269
				665
Total Ireland – 0.7%				665

COMMON STOCKS (Continued)	Shares			Value
Japan
Real Estate – 8.6%
Aeon REIT Investment Corp.		—	*	$	187
Daiwa Office Investment Corp.		—	*		1,271
Hulic, Inc.		1			791
Japan Retail Fund Investment Corp.		—	*		574
Kenedix Office Investment Corp.		—	*		1,925
Kenedix Retail Corp.		—	*		177
Mitsubishi Estate Logistics REIT Investment Corp.		—	*		674
Mitsui Fudosan Co. Ltd.		25			281
Nippon Building Fund, Inc.		—	*		493
ORIX JREIT, Inc.		2			2,213
Sekisui House REIT, Inc.		—	*		245
					8,831
Total Japan – 8.6%					8,831
Netherlands
Real Estate – 1.0%
NSI N.V.		7			294
Vastned Retail N.V.		16			727
					1,021
Total Netherlands – 1.0%					1,021
Singapore
Real Estate – 0.9%
CapitaCommercial Trust		292			357
CapitaMall Trust		229			337
Mapletree Commercial Trust		263			294
					988
Total Singapore – 0.9%					988
Spain
Real Estate – 0.9%
Axiare Patrimonio Socimi S.A.		26			531
Lar Espana Real Estate Socimi S.A.		44			428
					959
Total Spain – 0.9%					959
Sweden
Real Estate – 0.7%
Hufvudstaden AB		42			723
Total Sweden – 0.7%					723
Switzerland
Real Estate – 0.7%
PSP Swiss Property Ltd., Registered Shares		8			754
Total Switzerland – 0.7%					754

COMMON STOCKS (Continued)	Shares		Value
United Kingdom
Real Estate – 6.6%
Assura plc		337	$	283
Big Yellow Group plc		68		692
Derwent London plc		52		1,935
Land Securities Group plc		198		2,586
SEGRO plc		75		536
Shaftesbury plc		57		775
				6,807
Total United Kingdom – 6.6%				6,807
United States
Real Estate – 54.6%
American Campus Communities, Inc.		41		1,803
AvalonBay Communities, Inc.		21		3,743
Boston Properties, Inc.		32		3,891
Brixmor Property Group, Inc.		84		1,578
Camden Property Trust		24		2,190
Corporate Office Properties Trust		29		966
CubeSmart		72		1,866
Duke Realty Corp.		45		1,301
Equity Residential		80		5,276
Federal Realty Investment Trust		15		1,907
First Industrial Realty Trust, Inc.		18		546
GGP, Inc.		95		1,975
Hudson Pacific Properties, Inc.		25		854
Life Storage, Inc.		13		1,045
National Retail Properties, Inc.		38		1,599
Paramount Group, Inc.		95		1,515
ProLogis, Inc.		24		1,512
Public Storage, Inc.		17		3,577
Regency Centers Corp.		28		1,712
Simon Property Group, Inc.		43		6,954
Spirit Realty Capital, Inc.		62		533
Taubman Centers, Inc.		24		1,200
Ventas, Inc.		37		2,401
Vornado Realty Trust		39		2,967
Welltower, Inc.		55		3,870
				56,781
Total United States – 54.6%				56,781
TOTAL COMMON STOCKS – 99.0%			$	102,717
(Cost: $97,418)
RIGHTS
Singapore – 0.0%
CapitaLand Commercial Trust Management Ltd., expires 10–18–17		49		10
TOTAL RIGHTS – 0.0%			$	10
(Cost: $9)

28 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
1.450%, 10–4–17 (A)	$	118	$	118
TOTAL SHORT-TERM SECURITIES – 0.1%			$	118
(Cost: $118)
TOTAL INVESTMENT SECURITIES – 99.1%			$	102,845
(Cost: $97,545)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.9%				939
NET ASSETS – 100.0%			$	103,784

Notes to Schedule of Investments

* Not shown due to rounding.

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	102,717	$	—	$	—
Rights		—		10		—
Short-Term Securities		—		118		—
Total	$	102,717	$	128	$	—

During the period ended September 30, 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 Trusts

Market Sector Diversification
(as a % of net assets)
Real Estate	99.0%
Other+	1.0%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 29

PORTFOLIO HIGHLIGHTS IVY NATURAL RESOURCES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	97.5%
Energy	69.3%
Materials	23.4%
Industrials	3.7%
Consumer Staples	1.1%
Utilities	0.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.5%

Lipper Rankings

Category: Global Natural Resources Funds	Rank	Percentile
1 Year	89/126		71
3 Year	72/120		60
5 Year	62/111		56
10 Year	51/68		74

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

Country Diversification

(as a % of net assets)
United States	77.3%
United Kingdom	10.1%
Canada	8.3%
Netherlands	1.8%
Other Countries	0.0%
Other+	2.5%

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

Top 10 Equity Holdings

Company	Country	Sector	Industry
Halliburton Co.	United States	Energy	Oil & Gas Equipment & Services
EOG Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
RPC, Inc.	United States	Energy	Oil & Gas Equipment & Services
BHP Billiton plc	United Kingdom	Materials	Diversified Metals & Mining
Rio Tinto plc	United Kingdom	Materials	Diversified Metals & Mining
Air Products and Chemicals, Inc.	United States	Materials	Industrial Gases
Phillips 66	United States	Energy	Oil & Gas Refining & Marketing
Dow Chemical Co. (The)	United States	Materials	Diversified Chemicals
Cabot Oil & Gas Corp.	United States	Energy	Oil & Gas Exploration & Production
Potash Corp. of Saskatchewan, Inc.	Canada	Materials	Fertilizers & Agricultural Chemicals

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

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

30 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY NATURAL RESOURCES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Canada
Energy – 3.1%
Seven Generations Energy Ltd., Class A (A)		823	$	13,020
Suncor Energy, Inc.		178		6,234
				19,254
Materials – 5.2%
Potash Corp. of Saskatchewan, Inc.		969		18,645
West Fraser Timber Co. Ltd.		220		12,706
				31,351
Total Canada – 8.3%				50,605
China
Materials – 0.0%
China Metal Recycling (Holdings) Ltd. (A)(B)		30,000		—
Total China – 0.0%				—
Netherlands
Energy – 1.8%
Core Laboratories N.V.		110		10,887
Total Netherlands – 1.8%				10,887
United Kingdom
Materials – 10.1%
BHP Billiton plc		1,245		21,932
Croda International plc		31		1,553
Randgold Resources Ltd. ADR		169		16,457
Rio Tinto plc		461		21,449
				61,391
Total United Kingdom – 10.1%				61,391
United States
Consumer Staples – 1.1%
Ingredion, Inc.		56		6,714
Energy – 64.4%
Cabot Oil & Gas Corp.		760		20,329
Chevron Corp.		145		17,014
Cimarex Energy Co.		145		16,437

COMMON STOCKS (Continued)	Shares		Value
Energy (Continued)
Concho Resources, Inc. (A)		134	$	17,618
Continental Resources, Inc. (A)		297		11,469
Diamondback Energy, Inc. (A)		164		16,085
Enterprise Products Partners L.P.		548		14,295
EOG Resources, Inc.		242		23,363
EQT Midstream Partners L.P.		107		8,052
Halliburton Co. (C)		931		42,872
Helmerich & Payne, Inc.		61		3,163
Keane Group, Inc. (A)		311		5,183
Magellan Midstream Partners L.P.		213		15,143
Marathon Petroleum Corp.		166		9,315
MPLX L.P.		385		13,463
Noble Energy, Inc.		290		8,214
Parsley Energy, Inc., Class A (A)		568		14,973
Patterson-UTI Energy, Inc.		844		17,679
Phillips 66		227		20,809
Pioneer Natural Resources Co.		103		15,189
Plains All American Pipeline L.P.		447		9,481
RPC, Inc.		916		22,706
RSP Permian, Inc. (A)		371		12,828
Schlumberger Ltd.		221		15,383
U.S. Silica Holdings, Inc.		152		4,720
WPX Energy, Inc. (A)		1,348		15,505
				391,288
Industrials – 3.7%
Flowserve Corp.		199		8,495
Union Pacific Corp.		122		14,200
				22,695
Materials – 8.1%
Air Products and Chemicals, Inc.		139		20,974
Dow Chemical Co. (The)		300		20,734
Ecolab, Inc.		47		6,083
PPG Industries, Inc.		14		1,532
				49,323
Total United States – 77.3%				470,020
TOTAL COMMON STOCKS – 97.5%			$	592,903
(Cost: $549,413)

PREFERRED STOCKS	Shares		Value
United States
Utilities – 0.0%
Konarka Technologies, Inc.,
8.000%, Convertible (A)(B)(D)		3,500	$	—
Total United States – 0.0%				—
TOTAL PREFERRED STOCKS – 0.0%			$	—
(Cost: $10,850)
SHORT-TERM SECURITIES	Principal
Commercial Paper (E) – 3.5%
J.M. Smucker Co. (The)
1.371%, 10–6–17	$	5,000		4,999
Northern Illinois Gas Co.
1.250%, 10–2–17		6,254		6,253
Virginia Electric and Power Co.
1.560%, 10–12–17		5,000		4,997
Walgreens Boots Alliance, Inc.
1.490%, 10–12–17		5,000		4,998
				21,247
Master Note – 0.3%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
1.450%, 10–4–17 (F)		1,631		1,631
TOTAL SHORT-TERM SECURITIES – 3.8%			$	22,878
(Cost: $22,880)
TOTAL INVESTMENT SECURITIES – 101.3%			$	615,781
(Cost: $583,143)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.3)%				(7,638	)
NET ASSETS – 100.0%			$	608,143

Notes to Schedule of Investments

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

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

(C) All or a portion of securities with an aggregate value of $1,772 are held in collateralized accounts for OTC foreign forward currency contracts collateral.

(D) Restricted security. At September 30, 2017, the Fund owned the following restricted security:

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

2017 SEMIANNUAL REPORT 31

SCHEDULE OF INVESTMENTS IVY NATURAL RESOURCES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

    The total value of this security represented 0.0% of net assets at September 30, 2017.

(E) Rate shown is the yield to maturity at September 30, 2017.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		32,234	U.S. Dollar		41,673	10–5–17	UBS AG	$	—	$	1,523
Canadian Dollar		34,933	U.S. Dollar		27,775	10–5–17	UBS AG		—		223
								$	—	$	1,746

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	592,903	$	—	$	—
Preferred Stocks		—		—		—
Short-Term Securities		—		22,878		—
Total	$	592,903	$	22,878	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	1,746	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

LIBOR = London Interbank Offered Rate

OTC = Over the Counter

Market Sector Diversification
(as a % of net assets)
Energy	69.3%
Materials	23.4%
Industrials	3.7%
Consumer Staples	1.1%
Utilities	0.0%
Other+	2.5%

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

See Accompanying Notes to Financial Statements.

32 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY SCIENCE AND TECHNOLOGY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	97.7%
Information Technology	74.5%
Health Care	15.1%
Consumer Discretionary	2.7%
Telecommunication Services	1.9%
Real Estate	1.5%
Industrials	1.0%
Utilities	0.9%
Materials	0.1%
Consumer Staples	0.0%
Warrants	0.0%
Purchased Options	0.0%
Bonds	0.6%
Corporate Debt Securities	0.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.7%

Lipper Rankings

Category: Science & Technology Funds	Rank	Percentile
1 Year	63/171		37
3 Year	131/149		88
5 Year	102/140		73
10 Year	32/124		26

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

Country Weightings

North America	83.7%
United States	83.7%
Pacific Basin	9.2%
China	5.2%
India	4.0%
Europe	3.5%
Bahamas/Caribbean	1.7%
Other	0.2%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options	1.7%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Micron Technology, Inc.	United States	Information Technology	Semiconductors
Microsoft Corp.	United States	Information Technology	Systems Software
Vertex Pharmaceuticals, Inc.	United States	Health Care	Biotechnology
Microsemi Corp.	United States	Information Technology	Semiconductors
Facebook, Inc., Class A	United States	Information Technology	Internet Software & Services
Euronet Worldwide, Inc.	United States	Information Technology	Data Processing & Outsourced Services
ACI Worldwide, Inc.	United States	Information Technology	Application Software
Alibaba Group Holding Ltd. ADR	China	Information Technology	Internet Software & Services
WNS (Holdings) Ltd. ADR	India	Information Technology	Data Processing & Outsourced Services
Cerner Corp.	United States	Health Care	Health Care Technology

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 33

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Automobile Manufacturers – 0.8%
Tesla Motors, Inc. (A)		96	$	32,678
Internet & Direct Marketing Retail – 1.9%
Amazon.com, Inc. (A)		22		20,765
Netflix, Inc. (A)		325		58,993
				79,758
Total Consumer Discretionary – 2.7%				112,436
Consumer Staples
Agricultural Products – 0.0%
Arcadia Biosciences, Inc. (A)		1,942		835
Total Consumer Staples – 0.0%				835
Health Care
Biotechnology – 11.2%
BioMarin Pharmaceutical, Inc. (A)		415		38,633
Evogene Ltd. (A)(B)		1,465		6,461
Gilead Sciences, Inc.		255		20,636
Ionis Pharmaceuticals, Inc. (A)		2,251		114,100
Kite Pharma, Inc. (A)		469		84,277
Vertex Pharmaceuticals, Inc. (A)		1,344		204,266
				468,373
Health Care Technology – 3.9%
Cerner Corp. (A)		2,306		164,478
Total Health Care – 15.1%				632,851
Industrials
Air Freight & Logistics – 1.0%
Best, Inc. ADR (A)		3,454		41,350
Total Industrials – 1.0%				41,350
Information Technology
Application Software – 8.8%
ACI Worldwide, Inc. (A)(B)		7,802		177,740
Aspen Technology, Inc. (A)		2,373		149,036
Globant S.A. (A)		459		18,398
Snap, Inc., Class A (A)		1,734		25,215
				370,389
Data Processing & Outsourced Services – 11.1%
Alliance Data Systems Corp.		550		121,852
Euronet Worldwide, Inc. (A)		1,895		179,639
WNS (Holdings) Ltd. ADR (A)(B)		4,581		167,219
				468,710
Electronic Components – 3.8%
Universal Display Corp.		1,235		159,110
Internet Software & Services – 14.4%
Alibaba Group Holding Ltd. ADR (A)		1,020		176,112
Alphabet, Inc., Class A (A)		99		96,301
Alphabet, Inc., Class C (A)		129		123,479

COMMON STOCKS (Continued)	Shares		Value
Internet Software & Services (Continued)
Facebook, Inc., Class A (A)		1,094	$	187,007
Pandora Media, Inc. (A)		2,952		22,727
				605,626
IT Consulting & Other Services – 1.2%
CSRA, Inc.		1,561		50,369
Semiconductor Equipment – 2.1%
ASML Holding N.V., NY Registry Shares		509		87,124
Semiconductors – 21.2%
Cypress Semiconductor Corp.		8,334		125,180
Dialog Semiconductor plc (A)(C)		469		20,720
Marvell Technology Group Ltd.		3,901		69,819
Microchip Technology, Inc.		533		47,835
Micron Technology, Inc. (A)		7,729		303,970
Microsemi Corp. (A)		3,746		192,863
Rambus, Inc. (A)(B)		5,497		73,386
Semtech Corp. (A)		1,532		57,513
				891,286
Systems Software – 5.6%
Microsoft Corp.		3,166		235,843
Technology Hardware, Storage & Peripherals – 6.3%
Apple, Inc. (D)		1,010		155,600
Hewlett-Packard Co.		5,389		107,566
				263,166
Total Information Technology – 74.5%				3,131,623
Materials
Fertilizers & Agricultural Chemicals – 0.1%
Marrone Bio Innovations, Inc. (A)(B)		2,608		2,999
Total Materials – 0.1%				2,999
Real Estate
Specialized REITs – 1.5%
QTS Realty Trust, Inc., Class A		1,219		63,848
Total Real Estate – 1.5%				63,848
Telecommunication Services
Alternative Carriers – 1.9%
Zayo Group Holdings, Inc. (A)		2,341		80,570
Total Telecommunication Services — 1.9%				80,570
Utilities
Renewable Electricity – 0.9%
Atlantica Yield plc		2,025		39,887
Total Utilities – 0.9%				39,887

	Shares		Value
TOTAL COMMON STOCKS – 97.7%			$	4,106,399
(Cost: $2,030,987)
WARRANTS
Fertilizers & Agricultural Chemicals – 0.0%
Marrone Bio Innovations, Inc., expires 8-20-23 (B)(E)(F)		2,390		—
TOTAL WARRANTS – 0.0%			$	—
(Cost: $—)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Notional Amount
Apple, Inc., Call $167.50, Expires 10–6–17, OTC (Ctrpty: Citibank N.A.)		7,692		769		23
TOTAL PURCHASED OPTIONS – 0.0%					$	23
(Cost: $1,392)

CORPORATE DEBT SECURITIES	Principal
Materials
Fertilizers & Agricultural Chemicals – 0.6%
Marrone Bio Innovations, Inc.,
8.000%, 8–20–20 (B)(E)	$	23,900		23,991
Total Materials – 0.6%				23,991
TOTAL CORPORATE DEBT SECURITIES – 0.6%			$	23,991
(Cost: $23,900)
SHORT-TERM SECURITIES
Commercial Paper (G) – 1.5%
E.I. du Pont de Nemours and Co.,
1.440%, 10–25–17		10,000		9,990
GlaxoSmithKline LLC (GTD by GlaxoSmithKline plc),
1.181%, 10–6–17		5,109		5,108
Medtronic Global Holdings SCA:
1.252%, 10–3–17		12,000		11,998
1.530%, 10–16–17		10,000		9,993
River Fuel Funding Co. #3, Inc. (GTD by Bank of Nova Scotia),
1.300%, 10–31–17		11,000		10,988
Walgreens Boots Alliance, Inc.:
1.300%, 10–4–17		5,000		4,999
1.360%, 10–5–17		8,000		7,998
Wisconsin Gas LLC,
1.200%, 10–3–17		3,000		2,999
				64,073

34 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (H)	$	3,116	$	3,116
Municipal Obligations – 0.0%
Elmhurst, IL, Adj Demand Rev Bonds, Joint Comsn on Accred of Hlthcare Org (GTD by JPMorgan Chase Bank N.A.) (BVAL plus 23 bps),
0.950%, 10–5–17 (H)		1,950		1,950
TOTAL SHORT-TERM SECURITIES – 1.6%			$	69,139
(Cost: $69,146)
TOTAL INVESTMENT SECURITIES – 99.9%			$	4,199,552
(Cost: $2,125,425)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1%				3,917
NET ASSETS – 100.0%			$	4,203,469

Notes to Schedule of Investments

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

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

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

(D) All or a portion of securities with an aggregate value of $118,549 are held in collateralized accounts to cover potential obligations with respect to outstanding written options.

(E) Restricted securities. At September 30, 2017, the Fund owned the following restricted securities:

Security	Acquisition Date(s)		Principal		Cost		Market Value
Marrone Bio Innovations, Inc., 8.000%, 08–20–20		8–20–15	$	23,900	$	23,900	$	23,991
			Shares
Marrone Bio Innovations, Inc., expires 8–20–23		8–20–15		2,390	$	—	$	—
					$	23,900	$	23,991

The total value of these securities represented 0.6% of net assets at September 30, 2017.

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

(G) Rate shown is the yield to maturity at September 30, 2017.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 written options were outstanding at September 30, 2017 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type		Number of Contracts		Notional Amount		Expiration Month		Exercise Price		Premium Received		Value
Apple, Inc.	Citibank N.A.		Call		7,692		769		October 2017	$	177.50	$	223	$	(4	)

2017 SEMIANNUAL REPORT 35

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

SEPTEMBER 30, 2017 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	4,106,399	$	—	$	—
Warrants		—		—		—
Purchased Options		—		23		—
Corporate Debt Securities		—		23,991		—
Short-Term Securities		—		69,139		—
Total	$	4,106,399	$	93,153	$	—
Liabilities
Written Options	$	—	$	4	$	—

During the period ended September 30, 2017, securities totaling $7,830 were transferred from Level 2 to Level 1 due to increased availability of observable market data due to increased market activity or information for these securities. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

BVAL = Bloomberg Valuation Municipal AAA Benchmark

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	83.7%
China	5.2%
India	4.0%
Netherlands	2.1%
Bermuda	1.7%
Other Countries	1.6%
Other+	1.7%

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

See Accompanying Notes to Financial Statements.

36 SEMIANNUAL REPORT 2017

STATEMENTS OF ASSETS AND LIABILITIES Ivy Funds

AS OF SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Advantus Real Estate Securities Fund		Ivy Asset Strategy Fund(1)			Ivy Balanced Fund		Ivy Energy Fund			Ivy LaSalle Global Real Estate Fund			Ivy LaSalle Global Risk- Managed Real Estate Fund			Ivy Natural Resources Fund
ASSETS
Investments in unaffiliated securities at value+	$	564,771	$	3,429,040		$	1,927,419	$	463,377		$	83,275		$	102,845		$	615,781
Investments in affiliated securities at value+		—		18,140			—		—			—			—			—
Bullion at value+		—		206,411			—		—			—			—			—
Investments at Value		564,771		3,653,591			1,927,419		463,377			83,275			102,845			615,781
Cash		1		1,031			162		1			1			1			—	*
Cash denominated in foreign currencies at value+		—		306			—		—			124			314			—
Investment securities sold receivable		5,438		—			19,191		—			99			243			—
Dividends and interest receivable		1,589		10,395			5,307		241			397			549			465
Capital shares sold receivable		504		919			1,652		982			158			265			223
Receivable from affiliates		4		54			—		—			107			110			22
Swap agreements, at value		—		5,361			—		—			—			—			—
Prepaid and other assets		59		149			106		72			35			42			62
Total Assets		572,366		3,671,806			1,953,837		464,673			84,196			104,369			616,553
LIABILITIES
Investment securities purchased payable		2,080		—			1,491		—			121			225			4,687
Capital shares redeemed payable		997		9,775			4,730		1,113			114			312			1,032
Independent Trustees and Chief Compliance Officer fees payable		80		1,217			77		13			1			2			556
Distribution and service fees payable		6		103			45		6			—	*		1			10
Shareholder servicing payable		140		1,313			433		132			9			22			314
Investment management fee payable		25		127			72		22			4			5			32
Accounting services fee payable		14		23			23		12			4			6			17
Unrealized depreciation on forward foreign currency contracts		—		—			—		—			—			—			1,746
Written options at value+		—		1,039			—		—			—			—			—
Other liabilities		14		363			42		13			8			12			16
Total Liabilities		3,356		13,960			6,913		1,311			261			585			8,410
Total Net Assets	$	569,010	$	3,657,846		$	1,946,924	$	463,362		$	83,935		$	103,784		$	608,143
NET ASSETS
Capital paid in (shares authorized — unlimited)	$	380,930	$	3,699,621		$	1,641,850	$	555,444		$	81,114		$	102,025		$	2,746,339
Undistributed net investment income		907		13,689			8,729		4,843			226			(393	)		680
Accumulated net realized gain (loss)		47,940		(99,068	)		86,363		(130,108	)		(666	)		(3,146	)		(2,169,767	)
Net unrealized appreciation		139,233		43,604			209,982		33,183			3,261			5,298			30,891
Total Net Assets	$	569,010	$	3,657,846		$	1,946,924	$	463,362		$	83,935		$	103,784		$	608,143
CAPITAL SHARES OUTSTANDING:
Class A		8,801		51,426			24,686		9,960			895			1,787			20,157
Class B		112		5,065			2,651		250			24			61			376
Class C		507		61,641			23,871		5,786			86			600			6,537
Class E		142		1,551			8		10			N/A			N/A			309
Class I		7,271		27,820			24,252		16,975			2,332			6,260			10,972
Class N		122		476			474		918			4,467			27			616
Class R		48		2,530			539		2,006			47			384			1,606
Class Y		4,299		8,452			2,125		4,068			64			472			1,875
NET ASSET VALUE PER SHARE:
Class A		$26.67		$23.50			$24.83		$11.50			$10.57			$10.81			$14.53
Class B		$25.74		$22.03			$24.58		$10.46			$10.51			$10.74			$12.27
Class C		$26.12		$22.19			$24.66		$10.67			$10.50			$10.74			$12.13
Class E		$26.67		$23.61			$24.95		$11.81			N/A			N/A			$14.91
Class I		$26.83		$23.87			$24.82		$11.95			$10.61			$10.84			$15.16
Class N		$26.86		$23.97			$24.86		$12.01			$10.61			$10.84			$15.22
Class R		$26.64		$23.18			$24.79		$11.40			$10.55			$10.77			$14.35
Class Y		$26.70		$23.57			$24.83		$11.67			$10.69			$10.81			$14.89
+COST
Investments in unaffiliated securities at cost	$	425,538	$	2,807,570		$	1,717,437	$	430,194		$	80,014		$	97,545		$	583,143
Investments in affiliated securities at cost		—		616,742			—		—			—			—			—
Bullion at cost		—		191,012			—		—			—			—			—
Cash denominated in foreign currencies at cost		—		294			—		—			124			314			—
Written options premiums received at cost		—		1,195			—		—			—			—			—

* Not shown due to rounding.

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 37

STATEMENTS OF ASSETS AND LIABILITIES Ivy Funds

AS OF SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Science and Technology Fund
ASSETS
Investments in unaffiliated securities at value+	$	3,747,756
Investments in affiliated securities at value+		451,796
Investments at Value		4,199,552
Cash		4,220
Investment securities sold receivable		26,258
Dividends and interest receivable		2,792
Capital shares sold receivable		4,048
Receivable from affiliates		25
Prepaid and other assets		168
Total Assets		4,237,063
LIABILITIES
Investment securities purchased payable		12,284
Capital shares redeemed payable		19,917
Independent Trustees and Chief Compliance Officer fees payable		194
Distribution and service fees payable		68
Shareholder servicing payable		869
Investment management fee payable		187
Accounting services fee payable		23
Written options at value+		4
Other liabilities		48
Total Liabilities		33,594
Total Net Assets	$	4,203,469
NET ASSETS
Capital paid in (shares authorized — unlimited)	$	1,951,116
Distributions in excess of net investment income		(19,509	)
Accumulated net realized gain		197,516
Net unrealized appreciation		2,074,346
Total Net Assets	$	4,203,469
CAPITAL SHARES OUTSTANDING:
Class A		16,594
Class B		815
Class C		12,088
Class E		453
Class I		20,276
Class N		1,358
Class R		1,943
Class Y		9,689
NET ASSET VALUE PER SHARE:
Class A		$65.70
Class B		$55.08
Class C		$57.07
Class E		$65.27
Class I		$71.86
Class N		$72.20
Class R		$64.12
Class Y		$69.06
+COST
Investments in unaffiliated securities at cost	$	1,846,946
Investments in affiliated securities at cost		278,479
Written options premiums received at cost		223

See Accompanying Notes to Financial Statements.

38 SEMIANNUAL REPORT 2017

STATEMENTS OF OPERATIONS Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands)	Ivy Advantus Real Estate Securities Fund			Ivy Asset Strategy Fund(1)			Ivy Balanced Fund			Ivy Energy Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	6,321		$	29,344		$	17,764		$	7,762
Foreign dividend withholding tax		—			(1,178	)		(313	)		(46	)
Interest and amortization from unaffiliated securities		33			13,901			11,491			33
Total Investment Income		6,354			42,067			28,942			7,749
EXPENSES
Investment management fee		2,731			12,228			7,018			2,002
Distribution and service fees:
Class A		314			1,565			812			156
Class B		16			621			353			15
Class C		72			7,360			3,224			340
Class E		5			46			—	*		—	*
Class R		3			154			34			56
Class Y		155			267			76			56
Shareholder servicing:
Class A		360			1,201			534			184
Class B		8			127			55			7
Class C		22			1,233			386			78
Class E		11			67			—	*		—	*
Class I		185			553			529			169
Class N		—	*		1			1			1
Class R		2			79			18			29
Class Y		92			156			48			37
Registration fees		62			64			85			70
Custodian fees		8			207			11			7
Independent Trustees and Chief Compliance Officer fees		17			159			53			12
Accounting services fee		87			138			138			74
Professional fees		24			1,532			20			18
Other		31			259			114			41
Total Expenses		4,205			28,017			13,509			3,352
Less:
Expenses in excess of limit		(308	)		(54	)		—			—
Total Net Expenses		3,897			27,963			13,509			3,352
Net Investment Income		2,457			14,104			15,433			4,397
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		30,696			120,303			59,785			(19,523	)
Investments in affiliated securities		—			(81,330	)		—			—
Written options		—			723			—			—
Swap agreements		—			10,295			—			—
Foreign currency exchange transactions		—			431			—			4
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		(14,369	)		137,691			(15,855	)		(62,138	)
Investments in affiliated securities		—			70,369			—			—
Written options		—			156			—			—
Swap agreements		—			(289	)		—			—
Foreign currency exchange transactions		—			50			—			—
Net Realized and Unrealized Gain (Loss)		16,327			258,399			43,930			(81,657	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	18,784		$	272,503		$	59,363		$	(77,260	)

* Not shown due to rounding.

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 39

STATEMENTS OF OPERATIONS Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands)	Ivy LaSalle Global Real Estate Fund			Ivy LaSalle Global Risk- Managed Real Estate Fund			Ivy Natural Resources Fund			Ivy Science and Technology Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	883		$	1,544		$	4,462		$	11,455
Foreign dividend withholding tax		(46	)		(84	)		(78	)		(76	)
Interest and amortization from unaffiliated securities		2			1			48			413
Interest and amortization from affiliated securities		—			—			—			948
Total Investment Income		839			1,461			4,432			12,740
EXPENSES
Investment management fee		319			521			3,030			16,487
Distribution and service fees:
Class A		13			30			375			1,317
Class B		1			3			27			229
Class C		5			36			426			3,417
Class E		N/A			N/A			6			34
Class R		1			8			58			291
Class Y		1			7			35			816
Shareholder servicing:
Class A		17			34			679			851
Class B		—	*		1			25			43
Class C		1			6			146			482
Class E		N/A			N/A			21			55
Class I		30			62			154			1,112
Class N		1			—	*		—	*		8
Class R		1			4			31			148
Class Y		1			4			23			503
Registration fees		40			49			59			77
Custodian fees		13			20			8			27
Independent Trustees and Chief Compliance Officer fees		1			3			48			100
Accounting services fee		22			34			86			138
Professional fees		24			22			32			38
Other		8			12			37			147
Total Expenses		499			856			5,306			26,320
Less:
Expenses in excess of limit		(107	)		(110	)		(22	)		(25	)
Total Net Expenses		392			746			5,284			26,295
Net Investment Income (Loss)		447			715			(852	)		(13,555	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		111			236			(2,530	)		141,985
Investments in affiliated securities		—			—			—			(49,962	)
Written options		—			—			—			957
Forward foreign currency contracts		—			—			(4,004	)		—
Foreign currency exchange transactions		(26	)		37			29			(52	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		1,658			171			(6,870	)		376,501
Investments in affiliated securities		—			—			—			146,940
Written options		—			—			—			219
Forward foreign currency contracts		—			—			(1,031	)		—
Foreign currency exchange transactions		—	*		(2	)		—	*		—
Net Realized and Unrealized Gain (Loss)		1,743			442			(14,406	)		616,588
Net Increase (Decrease) in Net Assets Resulting from Operations	$	2,190		$	1,157		$	(15,258	)	$	603,033

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

40 SEMIANNUAL REPORT 2017

STATEMENTS OF CHANGES IN NET ASSETS Ivy Funds

	Ivy Advantus Real Estate Securities Fund						Ivy Asset Strategy Fund(1)						Ivy Balanced Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	2,457		$	5,018		$	14,104		$	(17,989	)	$	15,433		$	31,540
Net realized gain on investments		30,696			73,925			50,422			68,071			59,785			91,052
Net change in unrealized appreciation (depreciation)		(14,369	)		(79,313	)		207,977			205,383			(15,855	)		81,715
Net Increase (Decrease) in Net Assets Resulting from Operations		18,784			(370	)		272,503			255,465			59,363			204,307
Distributions to Shareholders From:
Net investment income:
Class A		(452	)		(4,394	)		—			—			(6,052	)		(10,862	)
Class B		—			(20	)		—			—			(410	)		(514	)
Class C		—			(122	)		—			—			(3,835	)		(5,295	)
Class E		(7	)		(47	)		—			—			(2	)		(2	)
Class I		(885	)		(2,195	)		—			—			(6,787	)		(10,032	)
Class N		(21	)		(48	)		—			—			(131	)		(150	)
Class R		(2	)		(18	)		—			—			(107	)		(131	)
Class Y		(330	)		(1,998	)		—			—			(516	)		(1,212	)
Net realized gains:
Class A		—			(22,755	)		—			—			—			(8,911	)
Class B		—			(330	)		—			—			—			(961	)
Class C		—			(1,448	)		—			—			—			(9,399	)
Class E		—			(322	)		—			—			—			(2	)
Class I		—			(17,058	)		—			—			—			(8,409	)
Class N		—			(226	)		—			—			—			(104	)
Class R		—			(137	)		—			—			—			(158	)
Class Y		—			(11,574	)		—			—			—			(1,021	)
Total Distributions to Shareholders		(1,697	)		(62,692	)		—			—			(17,840	)		(57,163	)
Capital Share Transactions		(72,584	)		(17,489	)		(995,174	)		(6,172,107	)		(333,140	)		(706,812	)
Net Decrease in Net Assets		(55,497	)		(80,551	)		(722,671	)		(5,916,642	)		(291,617	)		(559,668	)
Net Assets, Beginning of Period		624,507			705,058			4,380,517			10,297,159			2,238,541			2,798,209
Net Assets, End of Period	$	569,010		$	624,507		$	3,657,846		$	4,380,517		$	1,946,924		$	2,238,541
Undistributed (distributions in excess of) net investment income	$	907		$	147		$	13,689		$	(1,982	)	$	8,729		$	11,136

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 41

STATEMENTS OF CHANGES IN NET ASSETS Ivy Funds

	Ivy Energy Fund						Ivy LaSalle Global Real Estate Fund					Ivy LaSalle Global Risk- Managed Real Estate Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)		Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	4,397		$	(3,466	)	$	447	$	184		$	715		$	858
Net realized gain (loss) on investments		(19,519	)		(26,919	)		85		659			273			423
Net change in unrealized appreciation (depreciation)		(62,138	)		129,810			1,658		(1,071	)		169			(3,637	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(77,260	)		99,425			2,190		(228	)		1,157			(2,356	)
Distributions to Shareholders From:
Net investment income:
Class A		—			—			—		(532	)		—			(2,282	)
Class B		—			—			—		(5	)		—			(26	)
Class C		—			—			—		(13	)		—			(157	)
Class E		—			—			N/A		N/A			N/A			N/A
Class I		—			—			—		(200	)		—			(1,014	)
Class N		—			—			N/A		N/A			N/A			N/A
Class R		—			—			—		(9	)		—			(68	)
Class Y		—			—			—		(16	)		—			(142	)
Net realized gains:
Class A		—			—			—		—			—			(500	)
Class B		—			—			—		—			—			(11	)
Class C		—			—			—		—			—			(91	)
Class E		—			—			N/A		N/A			N/A			N/A
Class I		—			—			—		—			—			(616	)
Class N		—			—			N/A		N/A			N/A			N/A
Class R		—			—			—		—			—			(26	)
Class Y		—			—			—		—			—			(56	)
Total Distributions to Shareholders		—			—			—		(775	)		—			(4,989	)
Capital Share Transactions		(23,984	)		39,978			48,120		444			(11,750	)		35,061
Net Increase (Decrease) in Net Assets		(101,244	)		139,403			50,310		(559	)		(10,593	)		27,716
Net Assets, Beginning of Period		564,606			425,203			33,625		34,184			114,377			86,661
Net Assets, End of Period	$	463,362		$	564,606		$	83,935	$	33,625		$	103,784		$	114,377
Undistributed (distributions in excess of) net investment income	$	4,843		$	442		$	226	$	(195	)	$	(393	)	$	(1,145	)

See Accompanying Notes to Financial Statements.

42 SEMIANNUAL REPORT 2017

STATEMENTS OF CHANGES IN NET ASSETS Ivy Funds

	Ivy Natural Resources Fund						Ivy Science and Technology Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss	$	(852	)	$	(1,251	)	$	(13,555	)	$	(28,943	)
Net realized gain (loss) on investments		(6,505	)		36,740			92,928			234,785
Net change in unrealized appreciation (depreciation)		(7,901	)		87,745			523,660			616,772
Net Increase (Decrease) in Net Assets Resulting from Operations		(15,258	)		123,234			603,033			822,614
Distributions to Shareholders From:
Net investment income:
Class A		—			(224	)		—			—
Class B		—			—			—			—
Class C		—			—			—			—
Class E		—			(22	)		—			—
Class I		—			(1,017	)		—			—
Class N		—			(73	)		—			—
Class R		—			—			—			—
Class Y		—			(106	)		—			—
Net realized gains:
Class A		—			—			—			—
Class B		—			—			—			—
Class C		—			—			—			—
Class E		—			—			—			—
Class I		—			—			—			—
Class N		—			—			—			—
Class R		—			—			—			—
Class Y		—			—			—			—
Total Distributions to Shareholders		—			(1,442	)		—			—
Capital Share Transactions		(74,079	)		(134,415	)		(353,186	)		(1,858,104	)
Net Increase (Decrease) in Net Assets		(89,337	)		(12,623	)		249,847			(1,035,490	)
Net Assets, Beginning of Period		697,480			710,103			3,953,622			4,989,112
Net Assets, End of Period	$	608,143		$	697,480		$	4,203,469		$	3,953,622
Undistributed (distributions in excess of) net investment income	$	680		$	1,503		$	(19,509	)	$	(5,902	)

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 43

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ADVANTUS REAL ESTATE SECURITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	25.94	$	0.09		$	0.69		$	0.78		$	(0.05	)	$	—		$	(0.05	)
Year ended 3-31-2017		28.60		0.24			(0.26	)		(0.02	)		(0.35	)		(2.29	)		(2.64	)
Year ended 3-31-2016		29.38		0.33			0.52			0.85			(0.29	)		(1.34	)		(1.63	)
Year ended 3-31-2015		24.35		0.21			5.86			6.07			(0.17	)		(0.87	)		(1.04	)
Year ended 3-31-2014		23.73		0.16			0.69			0.85			(0.23	)		—			(0.23	)
Year ended 3-31-2013		21.27		0.16			2.45			2.61			(0.15	)		—			(0.15	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		25.11		(0.04	)		0.67			0.63			—			—			—
Year ended 3-31-2017		27.80		(0.03	)		(0.23	)		(0.26	)		(0.14	)		(2.29	)		(2.43	)
Year ended 3-31-2016		28.58		0.11			0.48			0.59			(0.03	)		(1.34	)		(1.37	)
Year ended 3-31-2015		23.77		(0.03	)		5.67			5.64			—			(0.83	)		(0.83	)
Year ended 3-31-2014		23.17		(0.06	)		0.66			0.60			—			—			—
Year ended 3-31-2013		20.85		(0.06	)		2.38			2.32			—			—			—
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		25.45		(0.01	)		0.68			0.67			—			—			—
Year ended 3-31-2017		28.15		(0.01	)		(0.21	)		(0.22	)		(0.19	)		(2.29	)		(2.48	)
Year ended 3-31-2016		28.92		0.13			0.52			0.65			(0.08	)		(1.34	)		(1.42	)
Year ended 3-31-2015		24.02		0.00	*		5.78			5.78			(0.01	)		(0.87	)		(0.88	)
Year ended 3-31-2014		23.42		0.00	*		0.67			0.67			(0.07	)		—			(0.07	)
Year ended 3-31-2013		21.00		0.01			2.42			2.43			(0.01	)		—			(0.01	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		25.94		0.09			0.69			0.78			(0.05	)		—			(0.05	)
Year ended 3-31-2017		28.60		0.12			(0.15	)		(0.03	)		(0.34	)		(2.29	)		(2.63	)
Year ended 3-31-2016		29.37		0.30			0.54			0.84			(0.27	)		(1.34	)		(1.61	)
Year ended 3-31-2015		24.35		0.13			5.87			6.00			(0.11	)		(0.87	)		(0.98	)
Year ended 3-31-2014		23.72		0.13			0.70			0.83			(0.20	)		—			(0.20	)
Year ended 3-31-2013		21.27		0.14			2.46			2.60			(0.15	)		—			(0.15	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		26.11		0.14			0.70			0.84			(0.12	)		—			(0.12	)
Year ended 3-31-2017		28.75		0.13			(0.05	)		0.08			(0.43	)		(2.29	)		(2.72	)
Year ended 3-31-2016		29.53		0.44			0.54			0.98			(0.42	)		(1.34	)		(1.76	)
Year ended 3-31-2015		24.50		0.32			5.90			6.22			(0.32	)		(0.87	)		(1.19	)
Year ended 3-31-2014		23.85		0.28			0.69			0.97			(0.32	)		—			(0.32	)
Year ended 3-31-2013		21.37		0.24			2.51			2.75			(0.27	)		—			(0.27	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		26.15		0.17			0.69			0.86			(0.15	)		—			(0.15	)
Year ended 3-31-2017		28.78		0.29			(0.16	)		0.13			(0.47	)		(2.29	)		(2.76	)
Year ended 3-31-2016		29.56		0.50			0.52			1.02			(0.46	)		(1.34	)		(1.80	)
Year ended 3-31-2015(6)		26.13		0.20			4.34			4.54			(0.24	)		(0.87	)		(1.11	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		25.92		0.05			0.70			0.75			(0.03	)		—			(0.03	)
Year ended 3-31-2017		28.59		0.09			(0.17	)		(0.08	)		(0.30	)		(2.29	)		(2.59	)
Year ended 3-31-2016		29.37		0.31			0.49			0.80			(0.24	)		(1.34	)		(1.58	)
Year ended 3-31-2015		24.35		0.20			5.81			6.01			(0.12	)		(0.87	)		(0.99	)
Year ended 3-31-2014		23.73		0.15			0.68			0.83			(0.21	)		—			(0.21	)
Year ended 3-31-2013		21.27		0.15			2.44			2.59			(0.13	)		—			(0.13	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		25.97		0.11			0.69			0.80			(0.07	)		—			(0.07	)
Year ended 3-31-2017		28.62		0.24			(0.21	)		0.03			(0.39	)		(2.29	)		(2.68	)
Year ended 3-31-2016		29.40		0.40			0.51			0.91			(0.35	)		(1.34	)		(1.69	)
Year ended 3-31-2015		24.39		0.28			5.84			6.12			(0.24	)		(0.87	)		(1.11	)
Year ended 3-31-2014		23.75		0.24			0.68			0.92			(0.28	)		—			(0.28	)
Year ended 3-31-2013		21.28		0.23			2.45			2.68			(0.21	)		—			(0.21	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

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

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

    .

44 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average  Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	26.67		3.00	%	$	235		1.41	%(4)		0.68	%(4)		1.51	%(4)		0.58	%(4)		32	%
Year ended 3-31-2017		25.94		0.02			261		1.43			0.87			1.53			0.77			77
Year ended 3-31-2016		28.60		3.41			507		1.47			1.22			1.57			1.12			66
Year ended 3-31-2015		29.38		25.19			543		1.46			0.78			1.56			0.68			48
Year ended 3-31-2014		24.35		3.65			384		1.56			0.67			1.66			0.57			73
Year ended 3-31-2013		23.73		12.32			341		1.64			0.71			1.68			0.67			43
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		25.74		2.51			3		2.37	(4)		-0.29	(4)		2.47	(4)		-0.39	(4)		32
Year ended 3-31-2017		25.11		-0.88			3		2.34			-0.10			2.44			-0.20			77
Year ended 3-31-2016		27.80		2.48			5		2.37			0.41			2.47			0.31			66
Year ended 3-31-2015		28.58		23.95			6		2.41			-0.10			2.51			-0.20			48
Year ended 3-31-2014		23.77		2.59			6		2.61			-0.28			2.71			-0.38			73
Year ended 3-31-2013		23.17		11.08			7		2.75			-0.29			2.79			-0.33			43
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		26.12		2.63			13		2.19	(4)		-0.11	(4)		2.29	(4)		-0.21	(4)		32
Year ended 3-31-2017		25.45		-0.72			15		2.16			-0.02			2.26			-0.12			77
Year ended 3-31-2016		28.15		2.67			19		2.18			0.48			2.28			0.38			66
Year ended 3-31-2015		28.92		24.27			21		2.18			0.01			2.28			-0.09			48
Year ended 3-31-2014		24.02		2.90			14		2.27			0.02			2.37			-0.08			73
Year ended 3-31-2013		23.42		11.50			15		2.35			0.03			2.39			-0.01			43
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		26.67		3.00			4		1.43	(4)		0.66	(4)		1.76	(4)		0.33	(4)		32
Year ended 3-31-2017		25.94		0.00			4		1.45			0.44			1.79			0.10			77
Year ended 3-31-2016		28.60		3.36			4		1.52			1.11			1.87			0.76			66
Year ended 3-31-2015		29.37		24.88			4		1.67			0.49			1.93			0.23			48
Year ended 3-31-2014		24.35		3.58			2		1.67			0.54			2.15			0.06			73
Year ended 3-31-2013		23.72		12.27			2		1.67			0.61			2.27			0.01			43
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		26.83		3.20			195		1.06	(4)		1.04	(4)		1.16	(4)		0.94	(4)		32
Year ended 3-31-2017		26.11		0.39			208		1.05			0.45			1.15			0.35			77
Year ended 3-31-2016		28.75		3.86			13		1.03			1.58			1.13			1.48			66
Year ended 3-31-2015		29.53		25.74			13		1.02			1.18			1.12			1.08			48
Year ended 3-31-2014		24.50		4.20			9		1.02			1.18			1.12			1.08			73
Year ended 3-31-2013		23.85		12.95			7		1.09			1.06			1.12			1.03			43
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		26.86		3.29			3		0.88	(4)		1.24	(4)		0.98	(4)		1.14	(4)		32
Year ended 3-31-2017		26.15		0.56			3		0.87			1.04			0.97			0.94			77
Year ended 3-31-2016		28.78		4.02			3		0.87			1.83			0.97			1.73			66
Year ended 3-31-2015(6)		29.56		17.66			4		0.86	(4)		1.10	(4)		0.96	(4)		1.00	(4)		48	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		26.64		2.87			1		1.65	(4)		0.39	(4)		1.75	(4)		0.29	(4)		32
Year ended 3-31-2017		25.92		-0.18			2		1.64			0.33			1.74			0.23			77
Year ended 3-31-2016		28.59		3.21			2		1.65			1.13			1.75			1.03			66
Year ended 3-31-2015		29.37		24.92			2		1.64			0.72			1.74			0.62			48
Year ended 3-31-2014		24.35		3.58			1		1.66			0.62			1.76			0.52			73
Year ended 3-31-2013		23.73		12.23			2		1.71			0.69			1.75			0.65			43
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		26.70		3.09			115		1.27	(4)		0.82	(4)		1.37	(4)		0.72	(4)		32
Year ended 3-31-2017		25.97		0.19			129		1.26			0.86			1.36			0.76			77
Year ended 3-31-2016		28.62		3.62			152		1.26			1.46			1.36			1.36			66
Year ended 3-31-2015		29.40		25.41			180		1.26			1.05			1.36			0.95			48
Year ended 3-31-2014		24.39		3.97			143		1.27			1.03			1.37			0.93			73
Year ended 3-31-2013		23.75		12.63			168		1.34			1.06			1.37			1.03			43

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 45

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ASSET STRATEGY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	21.86	$	0.11		$	1.53		$	1.64		$	—		$	—		$	—
Year ended 3-31-2017		20.83		0.00	*		1.03			1.03			—			—			—
Year ended 3-31-2016		25.89		0.15			(3.78	)		(3.63	)		(0.06	)		(1.37	)		(1.43	)
Year ended 3-31-2015		31.61		0.26			(1.01	)		(0.75	)		(0.12	)		(4.85	)		(4.97	)
Year ended 3-31-2014		27.04		0.27			4.45			4.72			(0.15	)		—			(0.15	)
Year ended 3-31-2013		25.44		0.39			1.88			2.27			(0.67	)		—			(0.67	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		20.56		0.02			1.45			1.47			—			—			—
Year ended 3-31-2017		19.73		(0.16	)		0.99			0.83			—			—			—
Year ended 3-31-2016		24.73		(0.04	)		(3.59	)		(3.63	)		—			(1.37	)		(1.37	)
Year ended 3-31-2015		30.54		0.03			(0.96	)		(0.93	)		(0.03	)		(4.85	)		(4.88	)
Year ended 3-31-2014		26.20		0.05			4.29			4.34			—	*		—			—	*
Year ended 3-31-2013		24.55		0.19			1.82			2.01			(0.36	)		—			(0.36	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		20.71		0.03			1.45			1.48			—			—			—
Year ended 3-31-2017		19.87		(0.15	)		0.99			0.84			—			—			—
Year ended 3-31-2016		24.88		(0.02	)		(3.62	)		(3.64	)		—			(1.37	)		(1.37	)
Year ended 3-31-2015		30.69		0.04			(0.97	)		(0.93	)		(0.03	)		(4.85	)		(4.88	)
Year ended 3-31-2014		26.33		0.05			4.32			4.37			(0.01	)		—			(0.01	)
Year ended 3-31-2013		24.67		0.20			1.83			2.03			(0.37	)		—			(0.37	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		21.95		0.13			1.53			1.66			—			—			—
Year ended 3-31-2017		20.89		(0.03	)		1.09			1.06			—			—			—
Year ended 3-31-2016		25.96		0.13			(3.78	)		(3.65	)		(0.05	)		(1.37	)		(1.42	)
Year ended 3-31-2015		31.67		0.23			(0.98	)		(0.75	)		(0.11	)		(4.85	)		(4.96	)
Year ended 3-31-2014		27.10		0.26			4.45			4.71			(0.14	)		—			(0.14	)
Year ended 3-31-2013		25.49		0.38			1.89			2.27			(0.66	)		—			(0.66	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		22.16		0.14			1.57			1.71			—			—			—
Year ended 3-31-2017		21.06		0.05			1.05			1.10			—			—			—
Year ended 3-31-2016		26.15		0.23			(3.84	)		(3.61	)		(0.11	)		(1.37	)		(1.48	)
Year ended 3-31-2015		31.88		0.33			(1.02	)		(0.69	)		(0.19	)		(4.85	)		(5.04	)
Year ended 3-31-2014		27.25		0.34			4.48			4.82			(0.19	)		—			(0.19	)
Year ended 3-31-2013		25.67		0.45			1.90			2.35			(0.77	)		—			(0.77	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		22.24		0.16			1.57			1.73			—			—			—
Year ended 3-31-2017		21.10		0.02			1.12			1.14			—			—			—
Year ended 3-31-2016		26.21		0.22			(3.81	)		(3.59	)		(0.15	)		(1.37	)		(1.52	)
Year ended 3-31-2015(6)		31.79		0.22			(0.78	)		(0.56	)		(0.17	)		(4.85	)		(5.02	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		21.59		0.08			1.51			1.59			—			—			—
Year ended 3-31-2017		20.63		(0.10	)		1.06			0.96			—			—			—
Year ended 3-31-2016		25.68		0.05			(3.73	)		(3.68	)		—			(1.37	)		(1.37	)
Year ended 3-31-2015		31.45		0.14			(1.00	)		(0.86	)		(0.06	)		(4.85	)		(4.91	)
Year ended 3-31-2014		26.94		0.16			4.43			4.59			(0.08	)		—			(0.08	)
Year ended 3-31-2013		25.29		0.29			1.88			2.17			(0.52	)		—			(0.52	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		21.92		0.12			1.53			1.65			—			—			—
Year ended 3-31-2017		20.88		0.00	*		1.04			1.04			—			—			—
Year ended 3-31-2016		25.94		0.15			(3.78	)		(3.63	)		(0.06	)		(1.37	)		(1.43	)
Year ended 3-31-2015		31.67		0.25			(1.01	)		(0.76	)		(0.12	)		(4.85	)		(4.97	)
Year ended 3-31-2014		27.09		0.27			4.46			4.73			(0.15	)		—			(0.15	)
Year ended 3-31-2013		25.49		0.39			1.88			2.27			(0.67	)		—			(0.67	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

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

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

    .

46 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	23.50		7.50	%	$	1,209		1.19	%(4)		0.97	%(4)		—	%		—	%		10	%
Year ended 3-31-2017		21.86		4.95			1,315		1.12			-0.02			—			—			51
Year ended 3-31-2016		20.83		-14.39			3,153		0.99			0.61			—			—			68
Year ended 3-31-2015		25.89		-2.28			6,332		0.96			0.86			—			—			75
Year ended 3-31-2014		31.61		17.47			9,659		0.96			0.92			—			—			65
Year ended 3-31-2013		27.04		9.09			7,853		0.98			1.55			—			—			39
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		22.03		7.15			112		1.95	(4)		0.22	(4)		—			—			10
Year ended 3-31-2017		20.56		4.21			141		1.83			-0.81			—			—			51
Year ended 3-31-2016		19.73		-15.06			287		1.76			-0.16			—			—			68
Year ended 3-31-2015		24.73		-3.01			571		1.71			0.11			—			—			75
Year ended 3-31-2014		30.54		16.58			783		1.71			0.16			—			—			65
Year ended 3-31-2013		26.20		8.27			715		1.73			0.79			—			—			39
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		22.19		7.15			1,367		1.91	(4)		0.25	(4)		—			—			10
Year ended 3-31-2017		20.71		4.23			1,620		1.83			-0.75			—			—			51
Year ended 3-31-2016		19.87		-15.01			3,792		1.71			-0.10			—			—			68
Year ended 3-31-2015		24.88		-2.99			7,807		1.68			0.13			—			—			75
Year ended 3-31-2014		30.69		16.59			9,880		1.68			0.19			—			—			65
Year ended 3-31-2013		26.33		8.34			8,321		1.70			0.83			—			—			39
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		23.61		7.56			37		1.03	(4)		1.11	(4)		1.32	(4)		0.82	(4)		10
Year ended 3-31-2017		21.95		5.07			38		1.03			-0.13			1.28			-0.38			51
Year ended 3-31-2016		20.89		-14.41			53		1.00			0.53			1.14			0.39			68
Year ended 3-31-2015		25.96		-2.29			72		1.00			0.79			1.10			0.69			75
Year ended 3-31-2014		31.67		17.40			74		1.00			0.87			1.12			0.75			65
Year ended 3-31-2013		27.10		9.07			58		1.00			1.50			1.20			1.30			39
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		23.87		7.72			664		0.89	(4)		1.23	(4)		—			—			10
Year ended 3-31-2017		22.16		5.22			952		0.85			0.23			—			—			51
Year ended 3-31-2016		21.06		-14.17			2,382		0.74			0.95			—			—			68
Year ended 3-31-2015		26.15		-2.06			9,112		0.74			1.08			—			—			75
Year ended 3-31-2014		31.88		17.72			13,522		0.73			1.14			—			—			65
Year ended 3-31-2013		27.25		9.33			9,681		0.74			1.76			—			—			39
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		23.97		7.78			11		0.76	(4)		1.40	(4)		—			—			10
Year ended 3-31-2017		22.24		5.40			13		0.69			0.07			—			—			51
Year ended 3-31-2016		21.10		-14.09			12		0.60			0.89			—			—			68
Year ended 3-31-2015(6)		26.21		-1.67			12		0.59	(4)		1.18	(4)		—			—			75	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		23.18		7.37			59		1.50	(4)		0.68	(4)		—			—			10
Year ended 3-31-2017		21.59		4.65			65		1.43			-0.48			—			—			51
Year ended 3-31-2016		20.63		-14.69			106		1.34			0.20			—			—			68
Year ended 3-31-2015		25.68		-2.67			161		1.33			0.47			—			—			75
Year ended 3-31-2014		31.45		17.03			162		1.33			0.54			—			—			65
Year ended 3-31-2013		26.94		8.71			124		1.34			1.15			—			—			39
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		23.57		7.53			199		1.14	(4)		1.02	(4)		—			—			10
Year ended 3-31-2017		21.92		4.98			237		1.08			0.00			—			—			51
Year ended 3-31-2016		20.88		-14.36			512		0.99			0.63			1.00			0.62			68
Year ended 3-31-2015		25.94		-2.31			1,134		0.96			0.85			0.98			0.83			75
Year ended 3-31-2014		31.67		17.47			1,516		0.96			0.92			0.98			0.90			65
Year ended 3-31-2013		27.09		9.08			1,168		0.98			1.55			0.99			1.54			39

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 47

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY BALANCED FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	24.33	$	0.20		$	0.53		$	0.73		$	(0.23	)	$	—		$	(0.23	)
Year ended 3-31-2017		22.99		0.33			1.59			1.92			(0.30	)		(0.28	)		(0.58	)
Year ended 3-31-2016		25.65		0.29			(1.51	)		(1.22	)		(0.26	)		(1.18	)		(1.44	)
Year ended 3-31-2015		24.38		0.20			1.97			2.17			(0.16	)		(0.74	)		(0.90	)
Year ended 3-31-2014		21.60		0.15			3.25			3.40			(0.10	)		(0.52	)		(0.62	)
Year ended 3-31-2013		20.03		0.19			1.70			1.89			(0.17	)		(0.15	)		(0.32	)
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		24.09		0.11			0.52			0.63			(0.14	)		—			(0.14	)
Year ended 3-31-2017		22.78		0.15			1.59			1.74			(0.15	)		(0.28	)		(0.43	)
Year ended 3-31-2016		25.45		0.11			(1.50	)		(1.39	)		(0.10	)		(1.18	)		(1.28	)
Year ended 3-31-2015		24.19		0.01			1.97			1.98			—			(0.72	)		(0.72	)
Year ended 3-31-2014		21.45		(0.03	)		3.23			3.20			—			(0.46	)		(0.46	)
Year ended 3-31-2013		19.93		0.03			1.69			1.72			(0.05	)		(0.15	)		(0.20	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		24.17		0.11			0.53			0.64			(0.15	)		—			(0.15	)
Year ended 3-31-2017		22.85		0.16			1.59			1.75			(0.15	)		(0.28	)		(0.43	)
Year ended 3-31-2016		25.53		0.13			(1.52	)		(1.39	)		(0.11	)		(1.18	)		(1.29	)
Year ended 3-31-2015		24.26		0.02			1.97			1.99			—	*		(0.72	)		(0.72	)
Year ended 3-31-2014		21.50		(0.01	)		3.24			3.23			—			(0.47	)		(0.47	)
Year ended 3-31-2013		19.98		0.05			1.68			1.73			(0.06	)		(0.15	)		(0.21	)
Class E Shares(5)
Six-month period ended 9-30-2017 (unaudited)		24.45		0.22			0.54			0.76			(0.26	)		—			(0.26	)
Year ended 3-31-2017		23.09		0.37			1.61			1.98			(0.34	)		(0.28	)		(0.62	)
Year ended 3-31-2016		25.76		0.33			(1.53	)		(1.20	)		(0.29	)		(1.18	)		(1.47	)
Year ended 3-31-2015		24.48		0.23			1.99			2.22			(0.20	)		(0.74	)		(0.94	)
Year ended 3-31-2014		21.68		0.18			3.27			3.45			(0.13	)		(0.52	)		(0.65	)
Year ended 3-31-2013		20.02		0.22			1.78			2.00			(0.19	)		(0.15	)		(0.34	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		24.33		0.23			0.53			0.76			(0.27	)		—			(0.27	)
Year ended 3-31-2017		22.98		0.39			1.60			1.99			(0.36	)		(0.28	)		(0.64	)
Year ended 3-31-2016		25.63		0.36			(1.52	)		(1.16	)		(0.31	)		(1.18	)		(1.49	)
Year ended 3-31-2015		24.36		0.26			1.98			2.24			(0.23	)		(0.74	)		(0.97	)
Year ended 3-31-2014		21.58		0.21			3.26			3.47			(0.16	)		(0.53	)		(0.69	)
Year ended 3-31-2013		20.01		0.24			1.69			1.93			(0.21	)		(0.15	)		(0.36	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		24.37		0.25			0.53			0.78			(0.29	)		—			(0.29	)
Year ended 3-31-2017		23.01		0.42			1.61			2.03			(0.39	)		(0.28	)		(0.67	)
Year ended 3-31-2016		25.66		0.39			(1.52	)		(1.13	)		(0.34	)		(1.18	)		(1.52	)
Year ended 3-31-2015(6)		24.66		0.22			1.72			1.94			(0.20	)		(0.74	)		(0.94	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		24.30		0.16			0.52			0.68			(0.19	)		—			(0.19	)
Year ended 3-31-2017		22.96		0.25			1.60			1.85			(0.23	)		(0.28	)		(0.51	)
Year ended 3-31-2016		25.65		0.22			(1.53	)		(1.31	)		(0.20	)		(1.18	)		(1.38	)
Year ended 3-31-2015		24.37		0.11			1.98			2.09			(0.07	)		(0.74	)		(0.81	)
Year ended 3-31-2014		21.59		0.07			3.26			3.33			(0.03	)		(0.52	)		(0.55	)
Year ended 3-31-2013(7)		20.16		0.00			1.43			1.43			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		24.34		0.20			0.52			0.72			(0.23	)		—			(0.23	)
Year ended 3-31-2017		22.99		0.35			1.59			1.94			(0.31	)		(0.28	)		(0.59	)
Year ended 3-31-2016		25.66		0.29			(1.52	)		(1.23	)		(0.26	)		(1.18	)		(1.44	)
Year ended 3-31-2015		24.38		0.20			1.99			2.19			(0.17	)		(0.74	)		(0.91	)
Year ended 3-31-2014		21.60		0.15			3.26			3.41			(0.10	)		(0.53	)		(0.63	)
Year ended 3-31-2013		20.03		0.19			1.70			1.89			(0.17	)		(0.15	)		(0.32	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

(3) Annualized.

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

(5) Class shares is closed to investment.

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

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

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

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

    .

48 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			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	24.83		3.03	%	$	613			1.13	%(3)		1.64	%(3)		14	%
Year ended 3-31-2017		24.33		8.44			688			1.11			1.40			47
Year ended 3-31-2016		22.99		-4.92			1,311			1.10			1.21			56
Year ended 3-31-2015		25.65		9.06			1,207			1.11			0.78			33
Year ended 3-31-2014		24.38		15.90			863			1.15			0.62			34
Year ended 3-31-2013		21.60		9.56			399			1.17			0.93			35
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		24.58		2.63			65			1.86	(3)		0.90	(3)		14
Year ended 3-31-2017		24.09		7.68			77			1.84			0.66			47
Year ended 3-31-2016		22.78		-5.62			80			1.83			0.48			56
Year ended 3-31-2015		25.45		8.28			74			1.84			0.04			33
Year ended 3-31-2014		24.19		15.01			70			1.89			-0.11			34
Year ended 3-31-2013		21.45		8.73			44			1.95			0.16			35
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		24.66		2.64			589			1.83	(3)		0.94	(3)		14
Year ended 3-31-2017		24.17		7.72			707			1.80			0.69			47
Year ended 3-31-2016		22.85		-5.62			892			1.79			0.53			56
Year ended 3-31-2015		25.53		8.34			736			1.80			0.09			33
Year ended 3-31-2014		24.26		15.11			524			1.84			-0.06			34
Year ended 3-31-2013		21.50		8.75			246			1.88			0.23			35
Class E Shares(5)
Six-month period ended 9-30-2017 (unaudited)		24.95		3.10			—	*		0.97	(3)		1.79	(3)		14
Year ended 3-31-2017		24.45		8.65			—	*		0.95			1.54			47
Year ended 3-31-2016		23.09		-4.82			—	*		0.95			1.36			56
Year ended 3-31-2015		25.76		9.22			—	*		0.96			0.92			33
Year ended 3-31-2014		24.48		16.10			—	*		1.00			0.78			34
Year ended 3-31-2013		21.68		10.15			—	*		1.03			1.09			35
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		24.82		3.13			602			0.88	(3)		1.89	(3)		14
Year ended 3-31-2017		24.33		8.75			673			0.85			1.63			47
Year ended 3-31-2016		22.98		-4.70			373			0.84			1.47			56
Year ended 3-31-2015		25.63		9.34			315			0.86			1.03			33
Year ended 3-31-2014		24.36		16.21			211			0.88			0.89			34
Year ended 3-31-2013		21.58		9.82			66			0.92			1.19			35
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		24.86		3.20			12			0.72	(3)		2.04	(3)		14
Year ended 3-31-2017		24.37		8.92			10			0.70			1.77			47
Year ended 3-31-2016		23.01		-4.57			5			0.69			1.60			56
Year ended 3-31-2015(6)		25.66		8.01			4			0.70	(3)		1.29	(3)		33	(8)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		24.79		2.82			13			1.46	(3)		1.30	(3)		14
Year ended 3-31-2017		24.30		8.12			14			1.44			1.04			47
Year ended 3-31-2016		22.96		-5.29			13			1.44			0.89			56
Year ended 3-31-2015		25.65		8.71			9			1.46			0.43			33
Year ended 3-31-2014		24.37		15.51			4			1.47			0.29			34
Year ended 3-31-2013(7)		21.59		7.09			—	*		1.48	(3)		0.02	(3)		35	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		24.83		2.98			53			1.12	(3)		1.66	(3)		14
Year ended 3-31-2017		24.34		8.50			70			1.10			1.47			47
Year ended 3-31-2016		22.99		-4.95			124			1.09			1.16			56
Year ended 3-31-2015		25.66		9.10			185			1.11			0.79			33
Year ended 3-31-2014		24.38		15.91			152			1.13			0.64			34
Year ended 3-31-2013		21.60		9.57			89			1.16			0.96			35

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 49

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ENERGY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	13.30	$	0.10		$	(1.90	)	$	(1.80	)	$	—	$	—	$	—
Year ended 3-31-2017		10.75		(0.08	)		2.63			2.55			—		—		—
Year ended 3-31-2016		14.03		(0.03	)		(3.25	)		(3.28	)		—		—		—
Year ended 3-31-2015		16.38		(0.05	)		(2.30	)		(2.35	)		—		—		—
Year ended 3-31-2014		13.74		(0.09	)		2.73			2.64			—		—		—
Year ended 3-31-2013		12.68		(0.07	)		1.13			1.06			—		—		—
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		12.15		0.04			(1.73	)		(1.69	)		—		—		—
Year ended 3-31-2017		9.90		(0.18	)		2.43			2.25			—		—		—
Year ended 3-31-2016		13.04		(0.13	)		(3.01	)		(3.14	)		—		—		—
Year ended 3-31-2015		15.35		(0.17	)		(2.14	)		(2.31	)		—		—		—
Year ended 3-31-2014		12.98		(0.19	)		2.56			2.37			—		—		—
Year ended 3-31-2013		12.08		(0.17	)		1.07			0.90			—		—		—
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		12.39		0.06			(1.78	)		(1.72	)		—		—		—
Year ended 3-31-2017		10.08		(0.16	)		2.47			2.31			—		—		—
Year ended 3-31-2016		13.24		(0.10	)		(3.06	)		(3.16	)		—		—		—
Year ended 3-31-2015		15.55		(0.13	)		(2.18	)		(2.31	)		—		—		—
Year ended 3-31-2014		13.12		(0.16	)		2.59			2.43			—		—		—
Year ended 3-31-2013		12.19		(0.14	)		1.07			0.93			—		—		—
Class E Shares(6)
Six-month period ended 9-30-2017 (unaudited)		13.63		0.12			(1.94	)		(1.82	)		—		—		—
Year ended 3-31-2017		10.99		(0.05	)		2.69			2.64			—		—		—
Year ended 3-31-2016		14.30		0.01			(3.32	)		(3.31	)		—		—		—
Year ended 3-31-2015		16.65		(0.01	)		(2.34	)		(2.35	)		—		—		—
Year ended 3-31-2014		13.92		(0.04	)		2.77			2.73			—		—		—
Year ended 3-31-2013		12.81		(0.03	)		1.14			1.11			—		—		—
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		13.80		0.13			(1.98	)		(1.85	)		—		—		—
Year ended 3-31-2017		11.11		(0.05	)		2.74			2.69			—		—		—
Year ended 3-31-2016		14.44		0.02			(3.35	)		(3.33	)		—		—		—
Year ended 3-31-2015		16.80		0.02			(2.38	)		(2.36	)		—		—		—
Year ended 3-31-2014		14.03		(0.02	)		2.79			2.77			—		—		—
Year ended 3-31-2013		12.90		(0.02	)		1.15			1.13			—		—		—
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		13.86		0.14			(1.99	)		(1.85	)		—		—		—
Year ended 3-31-2017		11.14		(0.02	)		2.74			2.72			—		—		—
Year ended 3-31-2016		14.46		0.04			(3.36	)		(3.32	)		—		—		—
Year ended 3-31-2015(7)		18.03		0.03			(3.60	)		(3.57	)		—		—		—
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		13.20		0.09			(1.89	)		(1.80	)		—		—		—
Year ended 3-31-2017		10.69		(0.12	)		2.63			2.51			—		—		—
Year ended 3-31-2016		13.98		(0.05	)		(3.24	)		(3.29	)		—		—		—
Year ended 3-31-2015		16.35		(0.08	)		(2.29	)		(2.37	)		—		—		—
Year ended 3-31-2014		13.74		(0.11	)		2.72			2.61			—		—		—
Year ended 3-31-2013(8)		12.26		(0.03	)		1.51			1.48			—		—		—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		13.49		0.11			(1.93	)		(1.82	)		—		—		—
Year ended 3-31-2017		10.89		(0.07	)		2.67			2.60			—		—		—
Year ended 3-31-2016		14.19		(0.01	)		(3.29	)		(3.30	)		—		—		—
Year ended 3-31-2015		16.55		(0.04	)		(2.32	)		(2.36	)		—		—		—
Year ended 3-31-2014		13.86		(0.06	)		2.75			2.69			—		—		—
Year ended 3-31-2013		12.77		(0.05	)		1.14			1.09			—		—		—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

(3) Annualized.

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

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

(6) Class share is closed to investment.

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

(8) For the period from December 12, 2012 (commencement of operations of the class) through March 31, 2013.

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

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

    .

50 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(4)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(4)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	11.50		-13.53	%	$	115			1.49	%(3)		1.77	%(3)		—	%		—	%		4	%
Year ended 3-31-2017		13.30		23.72			158			1.41			-0.59			—			—			39
Year ended 3-31-2016		10.75		-23.38			192			1.49			-0.23			—			—			31
Year ended 3-31-2015		14.03		-14.35			213			1.48			-0.33			—			—			22
Year ended 3-31-2014		16.38		19.13			124			1.60			-0.59			—			—			34
Year ended 3-31-2013		13.74		8.44			82			1.60			-0.54			1.68			-0.62			30
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		10.46		-13.91			3			2.42	(3)		0.87	(3)		—			—			4
Year ended 3-31-2017		12.15		22.73			4			2.29			-1.49			—			—			39
Year ended 3-31-2016		9.90		-24.08			3			2.36			-1.11			—			—			31
Year ended 3-31-2015		13.04		-15.05			5			2.29			-1.17			—			—			22
Year ended 3-31-2014		15.35		18.26			5			2.38			-1.37			—			—			34
Year ended 3-31-2013		12.98		7.36			4			2.49			-1.43			—			—			30
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.67		-13.88			62			2.17	(3)		1.09	(3)		—			—			4
Year ended 3-31-2017		12.39		22.92			87			2.11			-1.31			—			—			39
Year ended 3-31-2016		10.08		-23.87			79			2.16			-0.89			—			—			31
Year ended 3-31-2015		13.24		-14.85			82			2.09			-0.92			—			—			22
Year ended 3-31-2014		15.55		18.43			30			2.16			-1.15			—			—			34
Year ended 3-31-2013		13.12		7.71			19			2.26			-1.20			—			—			30
Class E Shares(6)
Six-month period ended 9-30-2017 (unaudited)		11.81		-13.35			—	*		1.20	(3)		2.07	(3)		—			—			4
Year ended 3-31-2017		13.63		24.02			—	*		1.19			-0.40			—			—			39
Year ended 3-31-2016		10.99		-23.15			—	*		1.20			0.05			—			—			31
Year ended 3-31-2015		14.30		-14.11			—	*		1.20			-0.08			—			—			22
Year ended 3-31-2014		16.65		19.53			—	*		1.25			-0.25			—			—			34
Year ended 3-31-2013		13.92		8.74			—	*		1.31			-0.26			—			—			30
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		11.95		-13.41			202			1.11	(3)		2.18	(3)		—			—			4
Year ended 3-31-2017		13.80		24.21			225			1.08			-0.35			—			—			39
Year ended 3-31-2016		11.11		-23.06			85			1.10			0.16			—			—			31
Year ended 3-31-2015		14.44		-14.05			82			1.09			0.10			—			—			22
Year ended 3-31-2014		16.80		19.74			14			1.14			-0.12			—			—			34
Year ended 3-31-2013		14.03		8.76			6			1.21			-0.14			—			—			30
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		12.01		-13.35			11			0.95	(3)		2.38	(3)		—			—			4
Year ended 3-31-2017		13.86		24.42			12			0.93			-0.18			—			—			39
Year ended 3-31-2016		11.14		-22.96			5			0.95			0.35			—			—			31
Year ended 3-31-2015(7)		14.46		-19.80			2			0.93	(3)		0.34	(3)		—			—			22	(9)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		11.40		-13.64			23			1.71	(3)		1.60	(3)		—			—			4
Year ended 3-31-2017		13.20		23.48			26			1.67			-0.89			—			—			39
Year ended 3-31-2016		10.69		-23.53			19			1.70			-0.43			—			—			31
Year ended 3-31-2015		13.98		-14.50			15			1.69			-0.53			—			—			22
Year ended 3-31-2014		16.35		19.00			5			1.72			-0.70			—			—			34
Year ended 3-31-2013(8)		13.74		12.07			—	*		1.73	(3)		-0.91	(3)		—						30	(10)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		11.67		-13.49			47			1.35	(3)		1.96	(3)		—			—			4
Year ended 3-31-2017		13.49		23.87			53			1.34			-0.54			—			—			39
Year ended 3-31-2016		10.89		-23.26			42			1.36			-0.08			—			—			31
Year ended 3-31-2015		14.19		-14.26			37			1.34			-0.22			—			—			22
Year ended 3-31-2014		16.55		19.41			18			1.39			-0.38			—			—			34
Year ended 3-31-2013		13.86		8.54			8			1.45			-0.39			—			—			30

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 51

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LASALLE GLOBAL REAL ESTATE FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	10.28	$	0.07		$	0.22		$	0.29		$	—		$	—		$	—
Year ended 3-31-2017		10.58		0.09			(0.14	)		(0.05	)		(0.25	)		—			(0.25	)
Year ended 3-31-2016		11.15		0.17			(0.41	)		(0.24	)		(0.13	)		(0.20	)		(0.33	)
Year ended 3-31-2015		9.83		0.13			1.46			1.59			(0.19	)		(0.08	)		(0.27	)
Year ended 3-31-2014		10.00		0.11			(0.12	)		(0.01	)		(0.16	)		—			(0.16	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		10.24		0.03			0.24			0.27			—			—			—
Year ended 3-31-2017		10.56		(0.04	)		(0.12	)		(0.16	)		(0.16	)		—			(0.16	)
Year ended 3-31-2016		11.10		0.06			(0.40	)		(0.34	)		(0.01	)		(0.19	)		(0.20	)
Year ended 3-31-2015		9.79		0.01			1.46			1.47			(0.08	)		(0.08	)		(0.16	)
Year ended 3-31-2014		10.00		0.00	*		(0.12	)		(0.12	)		(0.09	)		—			(0.09	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.24		0.02			0.24			0.26			—			—			—
Year ended 3-31-2017		10.55		(0.06	)		(0.11	)		(0.17	)		(0.14	)		—			(0.14	)
Year ended 3-31-2016		11.10		0.04			(0.41	)		(0.37	)		—			(0.18	)		(0.18	)
Year ended 3-31-2015		9.80		(0.01	)		1.47			1.46			(0.08	)		(0.08	)		(0.16	)
Year ended 3-31-2014		10.00		0.00	*		(0.11	)		(0.11	)		(0.09	)		—			(0.09	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		10.29		0.10			0.22			0.32			—			—			—
Year ended 3-31-2017		10.57		0.03			(0.07	)		(0.04	)		(0.24	)		—			(0.24	)
Year ended 3-31-2016		11.14		0.17			(0.42	)		(0.25	)		(0.12	)		(0.20	)		(0.32	)
Year ended 3-31-2015		9.82		0.12			1.46			1.58			(0.18	)		(0.08	)		(0.26	)
Year ended 3-31-2014		10.00		0.09			(0.11	)		(0.02	)		(0.16	)		—			(0.16	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		10.42		0.01			0.18			0.19			—			—			—
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		10.27		0.05			0.23			0.28			—			—			—
Year ended 3-31-2017		10.57		0.00	*		(0.11	)		(0.11	)		(0.19	)		—			(0.19	)
Year ended 3-31-2016		11.12		0.10			(0.41	)		(0.31	)		(0.04	)		(0.20	)		(0.24	)
Year ended 3-31-2015		9.81		0.05			1.46			1.51			(0.12	)		(0.08	)		(0.20	)
Year ended 3-31-2014		10.00		0.04			(0.11	)		(0.07	)		(0.12	)		—			(0.12	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		10.39		0.07			0.23			0.30			—			—			—
Year ended 3-31-2017		10.64		0.07			(0.07	)		0.00	*		(0.25	)		—			(0.25	)
Year ended 3-31-2016		11.22		0.17			(0.42	)		(0.25	)		(0.13	)		(0.20	)		(0.33	)
Year ended 3-31-2015		9.89		0.12			1.48			1.60			(0.19	)		(0.08	)		(0.27	)
Year ended 3-31-2014		10.00		0.11			(0.05	)		0.06			(0.17	)		—			(0.17	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

(6) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

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

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

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

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

    .

52 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average  Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	10.57		2.82	%	$	9			1.51	%(4)		1.25	%(4)		1.77	%(4)		0.99	%(4)		23	%
Year ended 3-31-2017		10.28		-0.45			12			1.51			0.91			2.08			0.34			49
Year ended 3-31-2016		10.58		-2.00			29			1.51			1.67			2.12			1.06			59
Year ended 3-31-2015		11.15		16.31			28			1.51			1.22			2.14			0.59			63
Year ended 3-31-2014		9.83		0.02			22			1.51			1.12			2.62			0.01			36
Class B Shares(6)
Six-month period ended 9-30-2017 (unaudited)		10.51		2.64			—	*		2.21	(4)		0.59	(4)		2.36	(4)		0.44	(4)		23
Year ended 3-31-2017		10.24		-1.52			—	*		2.54			-0.43			2.60			-0.49			49
Year ended 3-31-2016		10.56		-3.03			—	*		2.56			0.62			—			—			59
Year ended 3-31-2015		11.10		15.05			—	*		2.66			0.06			—			—			63
Year ended 3-31-2014		9.79		-1.16			—	*		2.68	(8)		-0.02			3.14			-0.48			36
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.50		2.54			1			2.32	(4)		0.47	(4)		2.47	(4)		0.32	(4)		23
Year ended 3-31-2017		10.24		-1.62			1			2.66			-0.57			2.72			-0.63			49
Year ended 3-31-2016		10.55		-3.21			1			2.74			0.41			—			—			59
Year ended 3-31-2015		11.10		14.92			1			2.68			-0.09			—			—			63
Year ended 3-31-2014		9.80		-1.03			1			2.67	(9)		—			3.12			-0.45			36
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		10.61		3.11			25			1.05	(4)		1.85	(4)		1.39	(4)		1.51	(4)		23
Year ended 3-31-2017		10.29		-0.39			20			1.50			0.25			1.61			0.14			49
Year ended 3-31-2016		10.57		-2.11			3			1.59			1.59			—			—			59
Year ended 3-31-2015		11.14		16.14			3			1.62			1.08			—			—			63
Year ended 3-31-2014		9.82		-0.13			2			1.71	(10)		0.94			2.16			0.49			36
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		10.61		1.82			48			1.05	(4)		0.49	(4)		1.37	(4)		0.17	(4)		23	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		10.55		2.73			—	*		1.81	(4)		0.99	(4)		1.96	(4)		0.84	(4)		23
Year ended 3-31-2017		10.27		-1.01			—	*		2.13			-0.05			2.20			-0.12			49
Year ended 3-31-2016		10.57		-2.68			—	*		2.20			0.99			—			—			59
Year ended 3-31-2015		11.12		15.40			1			2.25			0.50			—			—			63
Year ended 3-31-2014		9.81		-0.67			—	*		2.27	(11)		0.38			2.73			-0.08			36
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		10.69		2.89			1			1.45	(4)		1.35	(4)		1.60	(4)		1.20	(4)		23
Year ended 3-31-2017		10.39		0.03			1			1.52			0.70			1.87			0.35			49
Year ended 3-31-2016		10.64		-2.08			1			1.51			1.63			1.86			1.28			59
Year ended 3-31-2015		11.22		16.32			1			1.51			1.15			1.90			0.76			63
Year ended 3-31-2014		9.89		0.68			1			1.51			1.13			2.37			0.27			36

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 53

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LASALLE GLOBAL-RISK MANAGED REAL ESTATE FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	10.70	$	0.05		$	0.06		$	0.11		$	—		$	—		$	—
Year ended 3-31-2017		11.39		0.12			(0.32	)		(0.20	)		(0.37	)		(0.12	)		(0.49	)
Year ended 3-31-2016		11.06		0.22			0.35			0.57			(0.13	)		(0.11	)		(0.24	)
Year ended 3-31-2015		9.72		0.14			1.48			1.62			(0.28	)		—			(0.28	)
Year ended 3-31-2014		10.00		0.13			(0.24	)		(0.11	)		(0.17	)		—			(0.17	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		10.68		0.02			0.04			0.06			—			—			—
Year ended 3-31-2017		11.38		0.03			(0.31	)		(0.28	)		(0.30	)		(0.12	)		(0.42	)
Year ended 3-31-2016		11.04		0.15			0.33			0.48			(0.03	)		(0.11	)		(0.14	)
Year ended 3-31-2015		9.70		0.06			1.46			1.52			(0.18	)		—			(0.18	)
Year ended 3-31-2014		10.00		0.03			(0.23	)		(0.20	)		(0.10	)		—			(0.10	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.68		0.02			0.04			0.06			—			—			—
Year ended 3-31-2017		11.38		(0.02	)		(0.26	)		(0.28	)		(0.30	)		(0.12	)		(0.42	)
Year ended 3-31-2016		11.04		0.13			0.33			0.46			(0.02	)		(0.10	)		(0.12	)
Year ended 3-31-2015		9.70		0.05			1.47			1.52			(0.18	)		—			(0.18	)
Year ended 3-31-2014		10.00		0.03			(0.23	)		(0.20	)		(0.10	)		—			(0.10	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		10.72		0.08			0.04			0.12			—			—			—
Year ended 3-31-2017		11.39		0.06			(0.23	)		(0.17	)		(0.38	)		(0.12	)		(0.50	)
Year ended 3-31-2016		11.07		0.24			0.34			0.58			(0.15	)		(0.11	)		(0.26	)
Year ended 3-31-2015		9.72		0.15			1.47			1.62			(0.27	)		—			(0.27	)
Year ended 3-31-2014		10.00		0.12			(0.24	)		(0.12	)		(0.16	)		—			(0.16	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		10.67		0.00	*		0.17			0.17			—			—			—
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		10.70		0.05			0.02			0.07			—			—			—
Year ended 3-31-2017		11.39		0.04			(0.28	)		(0.24	)		(0.33	)		(0.12	)		(0.45	)
Year ended 3-31-2016		11.05		0.18			0.34			0.52			(0.07	)		(0.11	)		(0.18	)
Year ended 3-31-2015		9.70		0.09			1.47			1.56			(0.21	)		—			(0.21	)
Year ended 3-31-2014		10.00		0.06			(0.24	)		(0.18	)		(0.12	)		—			(0.12	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		10.71		0.06			0.04			0.10			—			—			—
Year ended 3-31-2017		11.40		0.07			(0.27	)		(0.20	)		(0.37	)		(0.12	)		(0.49	)
Year ended 3-31-2016		11.07		0.23			0.33			0.56			(0.12	)		(0.11	)		(0.23	)
Year ended 3-31-2015		9.72		0.13			1.50			1.63			(0.28	)		—			(0.28	)
Year ended 3-31-2014		10.00		0.13			(0.24	)		(0.11	)		(0.17	)		—			(0.17	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

(6) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

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

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

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

    .

54 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	10.81		1.03	%	$	19			1.51	%(4)		1.00	%(4)		1.75	%(4)		0.76	%(4)		15	%
Year ended 3-31-2017		10.70		-1.79			35			1.51			1.09			1.63			0.97			54
Year ended 3-31-2016		11.39		5.27			65			1.51			2.08			1.76			1.83			59
Year ended 3-31-2015		11.06		16.77			43			1.50			1.31			1.83			0.98			53
Year ended 3-31-2014		9.72		-1.00			20			1.51			1.39			2.08			0.82			38
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		10.74		0.56			1			2.29	(4)		0.37	(4)		2.33	(4)		0.33	(4)		15
Year ended 3-31-2017		10.68		-2.50			1			2.31			0.26			—			—			54
Year ended 3-31-2016		11.38		4.36			1			2.33			1.42			—			—			59
Year ended 3-31-2015		11.04		15.74			1			2.34			0.57			—			—			53
Year ended 3-31-2014		9.70		-1.92			1			2.53	(8)		0.32			2.58			0.27			38
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.74		0.56			6			2.31	(4)		0.33	(4)		2.35	(4)		0.29	(4)		15
Year ended 3-31-2017		10.68		-2.52			8			2.29			-0.20			—			—			54
Year ended 3-31-2016		11.38		4.34			4			2.35			1.24			—			—			59
Year ended 3-31-2015		11.04		15.72			3			2.38			0.43			—			—			53
Year ended 3-31-2014		9.70		-1.91			2			2.53	(8)		0.33			2.58			0.28			38
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		10.84		1.12			69			1.16	(4)		1.54	(4)		1.38	(4)		1.32	(4)		15
Year ended 3-31-2017		10.72		-1.44			63			1.22			0.57			1.32			0.47			54
Year ended 3-31-2016		11.39		5.37			11			1.39			2.25			—			—			59
Year ended 3-31-2015		11.07		16.79			10			1.47			1.46			—			—			53
Year ended 3-31-2014		9.72		-1.09			8			1.65	(9)		1.20			1.70			1.15			38
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		10.84		1.59			—	*		1.16	(4)		0.02	(4)		1.30	(4)		-0.12	(4)		15	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		10.77		0.65			4			1.91	(4)		0.97	(4)		1.95	(4)		0.93	(4)		15
Year ended 3-31-2017		10.70		-2.11			2			1.90			0.39			—			—			54
Year ended 3-31-2016		11.39		4.78			2			1.99			1.66			—			—			59
Year ended 3-31-2015		11.05		16.15			2			2.07			0.88			—			—			53
Year ended 3-31-2014		9.70		-1.72			2			2.26	(10)		0.60			2.31			0.55			38
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		10.81		0.93			5			1.51	(4)		1.17	(4)		1.60	(4)		1.08	(4)		15
Year ended 3-31-2017		10.71		-1.77			5			1.50			0.63			1.56			0.57			54
Year ended 3-31-2016		11.40		5.25			4			1.51			2.19			1.67			2.03			59
Year ended 3-31-2015		11.07		16.87			5			1.51			1.26			1.71			1.06			53
Year ended 3-31-2014		9.72		-0.98			3			1.50			1.35			1.95			0.90			38

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 55

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY NATURAL RESOURCES FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	14.80	$	(0.02	)	$	(0.25	)	$	(0.27	)	$	—		$	—	$	—
Year ended 3-31-2017		12.53		(0.03	)		2.31			2.28			(0.01	)		—		(0.01	)
Year ended 3-31-2016		16.13		0.03			(3.63	)		(3.60	)		—			—		—
Year ended 3-31-2015		19.07		0.00	*		(2.94	)		(2.94	)		—			—		—
Year ended 3-31-2014		17.84		(0.02	)		1.25			1.23			—			—		—
Year ended 3-31-2013		17.76		(0.03	)		0.14			0.11			(0.03	)		—		(0.03	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		12.57		(0.10	)		(0.20	)		(0.30	)		—			—		—
Year ended 3-31-2017		10.75		(0.15	)		1.97			1.82			—			—		—
Year ended 3-31-2016		13.98		(0.11	)		(3.12	)		(3.23	)		—			—		—
Year ended 3-31-2015		16.67		(0.15	)		(2.54	)		(2.69	)		—			—		—
Year ended 3-31-2014		15.73		(0.15	)		1.09			0.94			—			—		—
Year ended 3-31-2013		15.76		(0.14	)		0.11			(0.03	)		—			—		—
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		12.39		(0.06	)		(0.20	)		(0.26	)		—			—		—
Year ended 3-31-2017		10.55		(0.10	)		1.94			1.84			—			—		—
Year ended 3-31-2016		13.67		(0.06	)		(3.06	)		(3.12	)		—			—		—
Year ended 3-31-2015		16.26		(0.10	)		(2.49	)		(2.59	)		—			—		—
Year ended 3-31-2014		15.31		(0.11	)		1.06			0.95			—			—		—
Year ended 3-31-2013		15.31		(0.11	)		0.11			0.00			—			—		—
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		15.15		0.01			(0.25	)		(0.24	)		—			—		—
Year ended 3-31-2017		12.81		0.04			2.37			2.41			(0.07	)		—		(0.07	)
Year ended 3-31-2016		16.43		0.09			(3.71	)		(3.62	)		—			—		—
Year ended 3-31-2015		19.36		0.06			(2.99	)		(2.93	)		—			—		—
Year ended 3-31-2014		18.06		0.04			1.26			1.30			—			—		—
Year ended 3-31-2013		17.96		0.01			0.15			0.16			(0.06	)		—		(0.06	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		15.40		0.01			(0.25	)		(0.24	)		—			—		—
Year ended 3-31-2017		13.02		0.05			2.41			2.46			(0.08	)		—		(0.08	)
Year ended 3-31-2016		16.69		0.10			(3.77	)		(3.67	)		—			—		—
Year ended 3-31-2015		19.63		0.09			(3.03	)		(2.94	)		—			—		—
Year ended 3-31-2014		18.28		0.07			1.28			1.35			—			—		—
Year ended 3-31-2013		18.19		0.06			0.14			0.20			(0.11	)		—		(0.11	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		15.44		0.03			(0.25	)		(0.22	)		—			—		—
Year ended 3-31-2017		13.06		0.07			2.42			2.49			(0.11	)		—		(0.11	)
Year ended 3-31-2016		16.70		0.13			(3.77	)		(3.64	)		—			—		—
Year ended 3-31-2015(6)		20.86		0.11			(4.27	)		(4.16	)		—			—		—
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		14.61		(0.03	)		(0.23	)		(0.26	)		—			—		—
Year ended 3-31-2017		12.37		(0.04	)		2.28			2.24			—			—		—
Year ended 3-31-2016		15.94		0.01			(3.58	)		(3.57	)		—			—		—
Year ended 3-31-2015		18.87		(0.02	)		(2.91	)		(2.93	)		—			—		—
Year ended 3-31-2014		17.67		(0.04	)		1.24			1.20			—			—		—
Year ended 3-31-2013		17.58		(0.05	)		0.14			0.09			—			—		—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		15.14		0.00	*		(0.25	)		(0.25	)		—			—		—
Year ended 3-31-2017		12.80		0.01			2.38			2.39			(0.05	)		—		(0.05	)
Year ended 3-31-2016		16.45		0.06			(3.71	)		(3.65	)		—			—		—
Year ended 3-31-2015		19.39		0.04			(2.98	)		(2.94	)		—			—		—
Year ended 3-31-2014		18.10		0.02			1.27			1.29			—			—		—
Year ended 3-31-2013		18.02		0.02			0.13			0.15			(0.07	)		—		(0.07	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

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

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

    .

56 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average  Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	14.53		-1.82	%	$	293		1.76	%(4)		-0.34	%(4)		—	%		—	%		6	%
Year ended 3-31-2017		14.80		18.19			329		1.72			-0.22			—			—			64
Year ended 3-31-2016		12.53		-22.32			415		1.66			0.18			—			—			17
Year ended 3-31-2015		16.13		-15.42			645		1.57			-0.03			—			—			22
Year ended 3-31-2014		19.07		6.90			1,008		1.56			-0.09			—			—			100
Year ended 3-31-2013		17.84		0.64			1,375		1.52			-0.18			—			—			83
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		12.27		-2.39			5		2.99	(4)		-1.60	(4)		—			—			6
Year ended 3-31-2017		12.57		16.93			7		2.77			-1.27			—			—			64
Year ended 3-31-2016		10.75		-23.10			10		2.65			-0.85			—			—			17
Year ended 3-31-2015		13.98		-16.14			21		2.47			-0.95			—			—			22
Year ended 3-31-2014		16.67		5.98			40		2.41			-0.95			—			—			100
Year ended 3-31-2013		15.73		-0.19			69		2.33			-0.97			—			—			83
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		12.13		-2.10			79		2.40	(4)		-1.00	(4)		—			—			6
Year ended 3-31-2017		12.39		17.44			100		2.34			-0.84			—			—			64
Year ended 3-31-2016		10.55		-22.82			110		2.30			-0.47			—			—			17
Year ended 3-31-2015		13.67		-15.93			187		2.20			-0.65			—			—			22
Year ended 3-31-2014		16.26		6.21			291		2.18			-0.72			—			—			100
Year ended 3-31-2013		15.31		0.00	*		410		2.13			-0.78			—			—			83
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		14.91		-1.58			5		1.27	(4)		0.16	(4)		2.22	(4)		-0.79	(4)		6
Year ended 3-31-2017		15.15		18.77			5		1.27			0.25			2.19			-0.67			64
Year ended 3-31-2016		12.81		-22.03			4		1.26			0.59			2.21			-0.36			17
Year ended 3-31-2015		16.43		-15.13			6		1.27			0.32			2.03			-0.44			22
Year ended 3-31-2014		19.36		7.20			7		1.27			0.20			2.12			-0.64			100
Year ended 3-31-2013		18.06		0.91			7		1.27			0.05			2.21			-0.89			83
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		15.16		-1.56			166		1.24	(4)		0.18	(4)		—			—			6
Year ended 3-31-2017		15.40		18.88			188		1.19			0.33			—			—			64
Year ended 3-31-2016		13.02		-21.99			103		1.16			0.67			—			—			17
Year ended 3-31-2015		16.69		-14.98			174		1.11			0.47			—			—			22
Year ended 3-31-2014		19.63		7.39			224		1.08			0.37			—			—			100
Year ended 3-31-2013		18.28		1.14			484		1.05			0.32			—			—			83
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		15.22		-1.42			9		1.06	(4)		0.36	(4)		—			—			6
Year ended 3-31-2017		15.44		19.01			10		1.02			0.48			—			—			64
Year ended 3-31-2016		13.06		-21.80			11		1.00			0.92			—			—			17
Year ended 3-31-2015(6)		16.70		-19.94			5		0.95	(4)		0.97	(4)		—			—			22	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		14.35		-1.78			23		1.81	(4)		-0.39	(4)		—			—			6
Year ended 3-31-2017		14.61		18.11			26		1.77			-0.25			—			—			64
Year ended 3-31-2016		12.37		-22.40			24		1.75			0.10			—			—			17
Year ended 3-31-2015		15.94		-15.53			33		1.69			-0.12			—			—			22
Year ended 3-31-2014		18.87		6.79			43		1.67			-0.20			—			—			100
Year ended 3-31-2013		17.67		0.51			50		1.63			-0.30			—			—			83
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		14.89		-1.65			28		1.46	(4)		-0.04	(4)		—			—			6
Year ended 3-31-2017		15.14		18.63			32		1.43			0.08			—			—			64
Year ended 3-31-2016		12.80		-22.19			33		1.40			0.42			—			—			17
Year ended 3-31-2015		16.45		-15.16			60		1.35			0.20			—			—			22
Year ended 3-31-2014		19.39		7.07			88		1.33			0.10			—			—			100
Year ended 3-31-2013		18.10		0.93			186		1.27			0.11			1.29			0.09			83

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 57

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SCIENCE AND TECHNOLOGY FUND

	Net Asset Value, Beginning of Period		Net Investment Loss(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	56.65	$	(0.19	)	$	9.24		$	9.05		$	—	$	—		$	—
Year ended 3-31-2017		46.35		(0.32	)		10.62			10.30			—		—			—
Year ended 3-31-2016		55.95		(0.35	)		(7.99	)		(8.34	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		52.71		(0.36	)		4.77			4.41			—		(1.17	)		(1.17	)
Year ended 3-31-2014		39.79		(0.30	)		14.54			14.24			—		(1.32	)		(1.32	)
Year ended 3-31-2013		33.54		(0.27	)		6.71			6.44			—		(0.19	)		(0.19	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		47.68		(0.36	)		7.76			7.40			—		—			—
Year ended 3-31-2017		39.32		(0.59	)		8.95			8.36			—		—			—
Year ended 3-31-2016		48.01		(0.63	)		(6.80	)		(7.43	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		45.73		(0.65	)		4.10			3.45			—		(1.17	)		(1.17	)
Year ended 3-31-2014		34.92		(0.59	)		12.72			12.13			—		(1.32	)		(1.32	)
Year ended 3-31-2013		29.69		(0.48	)		5.90			5.42			—		(0.19	)		(0.19	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		49.39		(0.36	)		8.04			7.68			—		—			—
Year ended 3-31-2017		40.70		(0.59	)		9.28			8.69			—		—			—
Year ended 3-31-2016		49.63		(0.63	)		(7.04	)		(7.67	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		47.21		(0.65	)		4.24			3.59			—		(1.17	)		(1.17	)
Year ended 3-31-2014		35.99		(0.58	)		13.12			12.54			—		(1.32	)		(1.32	)
Year ended 3-31-2013		30.57		(0.47	)		6.08			5.61			—		(0.19	)		(0.19	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		56.28		(0.20	)		9.19			8.99			—		—			—
Year ended 3-31-2017		46.08		(0.33	)		10.53			10.20			—		—			—
Year ended 3-31-2016		55.70		(0.42	)		(7.94	)		(8.36	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		52.57		(0.45	)		4.75			4.30			—		(1.17	)		(1.17	)
Year ended 3-31-2014		39.74		(0.38	)		14.53			14.15			—		(1.32	)		(1.32	)
Year ended 3-31-2013		33.48		(0.29	)		6.74			6.45			—		(0.19	)		(0.19	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		61.88		(0.12	)		10.10			9.98			—		—			—
Year ended 3-31-2017		50.49		(0.19	)		11.58			11.39			—		—			—
Year ended 3-31-2016		60.64		(0.22	)		(8.67	)		(8.89	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		56.87		(0.23	)		5.17			4.94			—		(1.17	)		(1.17	)
Year ended 3-31-2014		42.72		(0.19	)		15.66			15.47			—		(1.32	)		(1.32	)
Year ended 3-31-2013		35.88		(0.17	)		7.20			7.03			—		(0.19	)		(0.19	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		62.13		(0.07	)		10.14			10.07			—		—			—
Year ended 3-31-2017		50.62		(0.10	)		11.61			11.51			—		—			—
Year ended 3-31-2016		60.70		(0.12	)		(8.70	)		(8.82	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015(6)		57.21		(0.12	)		4.78			4.66			—		(1.17	)		(1.17	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		55.38		(0.28	)		9.02			8.74			—		—			—
Year ended 3-31-2017		45.45		(0.46	)		10.39			9.93			—		—			—
Year ended 3-31-2016		55.05		(0.49	)		(7.85	)		(8.34	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		52.04		(0.52	)		4.70			4.18			—		(1.17	)		(1.17	)
Year ended 3-31-2014		39.42		(0.46	)		14.40			13.94			—		(1.32	)		(1.32	)
Year ended 3-31-2013		33.32		(0.36	)		6.65			6.29			—		(0.19	)		(0.19	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		59.54		(0.20	)		9.72			9.52			—		—			—
Year ended 3-31-2017		48.70		(0.31	)		11.15			10.84			—		—			—
Year ended 3-31-2016		58.68		(0.34	)		(8.38	)		(8.72	)		—		(1.26	)		(1.26	)
Year ended 3-31-2015		55.20		(0.35	)		5.00			4.65			—		(1.17	)		(1.17	)
Year ended 3-31-2014		41.60		(0.31	)		15.23			14.92			—		(1.32	)		(1.32	)
Year ended 3-31-2013		35.03		(0.26	)		7.02			6.76			—		(0.19	)		(0.19	)

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

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

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

    .

58 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 Loss to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	65.70		15.97	%	$	1,090		1.25	%(4)		-0.62	%(4)		—	%		—	%		11	%
Year ended 3-31-2017		56.65		22.22			1,026		1.30			-0.66			—			—			16
Year ended 3-31-2016		46.35		-15.10			1,790		1.28			-0.69			—			—			24
Year ended 3-31-2015		55.95		8.48			2,198		1.26			-0.67			—			—			32
Year ended 3-31-2014		52.71		35.99			1,998		1.26			-0.63			—			—			35
Year ended 3-31-2013		39.79		19.28			759		1.37			-0.79			—			—			43
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		55.08		15.54			45		2.02	(4)		-1.40	(4)		—			—			11
Year ended 3-31-2017		47.68		21.26			48		2.06			-1.41			—			—			16
Year ended 3-31-2016		39.32		-15.71			52		2.02			-1.42			—			—			24
Year ended 3-31-2015		48.01		7.67			69		2.01			-1.42			—			—			32
Year ended 3-31-2014		45.73		34.91			71		2.04			-1.42			—			—			35
Year ended 3-31-2013		34.92		18.37			40		2.17			-1.59			—			—			43
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		57.07		15.57			690		1.98	(4)		-1.35	(4)		—			—			11
Year ended 3-31-2017		49.39		21.35			683		2.00			-1.35			—			—			16
Year ended 3-31-2016		40.70		-15.68			833		1.97			-1.37			—			—			24
Year ended 3-31-2015		49.63		7.73			999		1.95			-1.37			—			—			32
Year ended 3-31-2014		47.21		35.02			776		1.97			-1.34			—			—			35
Year ended 3-31-2013		35.99		18.47			278		2.07			-1.50			—			—			43
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		65.27		15.97			30		1.30	(4)		-0.67	(4)		1.49	(4)		-0.86	(4)		11
Year ended 3-31-2017		56.28		22.13			25		1.33			-0.67			1.58			-0.92			16
Year ended 3-31-2016		46.08		-15.21			21		1.41			-0.82			1.54			-0.95			24
Year ended 3-31-2015		55.70		8.29			22		1.43			-0.84			1.55			-0.96			32
Year ended 3-31-2014		52.57		35.80			17		1.43			-0.80			1.63			-1.00			35
Year ended 3-31-2013		39.74		19.31			9		1.43			-0.85			1.91			-1.33			43
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		71.86		16.13			1,456		0.99	(4)		-0.37	(4)		—			—			11
Year ended 3-31-2017		61.88		22.56			1,327		1.00			-0.35			—			—			16
Year ended 3-31-2016		50.49		-14.84			1,364		0.97			-0.39			—			—			24
Year ended 3-31-2015		60.64		8.79			1,871		0.97			-0.39			—			—			32
Year ended 3-31-2014		56.87		36.37			1,411		0.99			-0.36			—			—			35
Year ended 3-31-2013		42.72		19.70			322		1.04			-0.46			—			—			43
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		72.20		16.22			98		0.85	(4)		-0.22	(4)		—			—			11
Year ended 3-31-2017		62.13		22.74			93		0.85			-0.18			—			—			16
Year ended 3-31-2016		50.62		-14.71			65		0.83			-0.22			—			—			24
Year ended 3-31-2015(6)		60.70		8.25			12		0.82	(4)		-0.32	(4)		—			—			32	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		64.12		15.78			125		1.59	(4)		-0.96	(4)		—			—			11
Year ended 3-31-2017		55.38		21.85			108		1.59			-0.94			—			—			16
Year ended 3-31-2016		45.45		-15.35			110		1.57			-0.98			—			—			24
Year ended 3-31-2015		55.05		8.15			114		1.57			-0.98			—			—			32
Year ended 3-31-2014		52.04		35.56			105		1.59			-0.96			—			—			35
Year ended 3-31-2013		39.42		18.96			56		1.64			-1.07			—			—			43
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		69.06		15.99			669		1.24	(4)		-0.61	(4)		—			—			11
Year ended 3-31-2017		59.54		22.26			644		1.24			-0.59			—			—			16
Year ended 3-31-2016		48.70		-15.04			754		1.22			-0.63			—			—			24
Year ended 3-31-2015		58.68		8.53			1,030		1.22			-0.63			—			—			32
Year ended 3-31-2014		55.20		36.02			1,043		1.24			-0.61			—			—			35
Year ended 3-31-2013		41.60		19.40			552		1.29			-0.71			—			—			43

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 59

NOTES TO FINANCIAL STATEMENTS IVY FUNDS

SEPTEMBER 30, 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 Advantus Real Estate Securities Fund, Ivy Asset Strategy Fund, Ivy Balanced Fund, Ivy Energy Fund, Ivy LaSalle Global Real Estate Fund, Ivy LaSalle Global Risk-Managed Real Estate Fund, Ivy Natural Resources Fund and Ivy Science and Technology Fund (each, a “Fund”) are eight series of the Trust and are the only series of the Trust included in these financial statements. The investment objective(s), policies and risk factors of each Fund are described more fully in the Funds’ Prospectus and Statement of Additional Information (“SAI”). Each Fund’s investment manager is Ivy Investment Management Company (“IICO” or the “Manager”).

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

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

Foreign Currency Translation. Each Fund’s accounting records are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars daily, using foreign exchange rates obtained from an independent pricing service approved by the Board of Trustees of the Trust (the “Board”). Purchases and sales of investment securities and accruals of income and expenses are translated at the rate of exchange prevailing on the date of the transaction. For assets and liabilities other than investments in securities, net realized and unrealized gains and losses from foreign currency translation arise from changes in currency exchange rates. Each Fund combines fluctuations from currency exchange rates and fluctuations in value when computing net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments. Foreign exchange rates are typically valued as of the close of the New York Stock Exchange (“NYSE”), normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

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

Income Taxes. It is the policy of each Fund to distribute all of its taxable income and capital gains to its shareholders and to otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition, each Fund intends to pay distributions as required to avoid imposition of excise tax. Accordingly, no provision has been made for Federal income taxes. The Funds file income tax returns in U.S. federal and applicable state jurisdictions. The Funds’ tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax returns. Management of the Trust periodically reviews all tax positions to assess whether it is more likely than not that the position would be sustained upon examination by the relevant tax authority based on the technical merits of each position. As of the date of these financial statements, management believes that no liability for unrecognized tax positions is required.

60 SEMIANNUAL REPORT 2017

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders are recorded by each Fund on the business day following record date. Net investment income dividends and capital gains distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“U.S. GAAP”). If the total dividends and distributions made in any tax year exceed net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a return of capital for tax purposes.

Segregation and Collateralization. In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”), the Dodd Frank Wall Street Reform and Consumer Protection Act, or the interpretive rules and regulations of the U.S. Commodities Futures Trading Commission require that a Fund either deliver collateral or segregate assets in connection with certain investments (e.g., dollar rolls, financial futures contracts, foreign currency exchange contracts, options written, securities with extended settlement periods, and swaps), the Fund will segregate collateral or designate on its books and records, cash or other liquid securities having a value at least equal to the amount that is required to be physically segregated for the benefit of the counterparty. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit cash or securities as collateral for certain investments. Certain countries require that cash reserves be held while investing in companies incorporated in that country. These cash reserves and cash collateral that has been pledged to cover obligations of the Funds under derivative contracts, if any, will be reported separately on the Statement of Assets and Liabilities as “Restricted cash”. Securities collateral pledged for the same purpose, if any, is noted on the Schedule of Investments.

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

Certain Funds may hold high-yield 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.

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

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

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

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

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

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

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

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

Indemnification. The Trust’s organizational documents provide current and former Trustees and Officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Trust. In the normal course of business, the Trust may also enter into contracts that provide general indemnification. The Trust’s maximum 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.

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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. The Board of Trustees of the Waddell & Reed Advisors Funds (“WRA Funds”) approved a Reorganization Plan, in which each WRA Fund has been reorganized into a corresponding fund within Ivy Funds, a trust whose investment advisor is IICO, an affiliate of Waddell & Reed Investment Management Company (“WRIMCO”). This means that the corresponding fund within Ivy Funds received all of the assets and liabilities of the corresponding WRA Fund in exchange for shares of the Ivy Fund. Each WRA Fund, in turn, distributed those Ivy Fund shares to its shareholders in liquidation and shareholders of a WRA Fund became shareholders of the corresponding Ivy Fund. Under the Reorganization Plan, each WRA Fund was reorganized into the Ivy Fund listed directly opposite such WRA Fund in the table below.

WRA Funds	Ivy Funds
WRA Energy Fund	Ivy Energy Fund

The Reorganization took place on October 16, 2017.

On November 14, 2017, the Board of Trustees of the WRA Funds adopted a resolution in which the WRA Funds will be reorganized into a corresponding series of the Ivy Funds, an affiliated investment company, as shown in the table below. This means that the corresponding fund within Ivy Funds will receive all of the assets and liabilities of the corresponding WRA Fund in exchange for shares of the Ivy Fund. Each WRA Fund, in turn, will distribute those Ivy Fund shares to its shareholders in liquidation and shareholders of a WRA Fund will become shareholders of the corresponding Ivy Fund. Under the Reorganization Plan, each WRA Fund will be reorganized into the Ivy Fund listed directly opposite such WRA Fund in the table below.

WRA Funds	Ivy Funds
WRA Continental Income Fund	Ivy Balanced Fund
WRA Science and Technology Fund	Ivy Science and Technology Fund

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,

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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.

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

Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

An individual investment’s fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation.

The three-tier hierarchy of inputs is summarized as follows:

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

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

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

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

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

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

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

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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 significant judgments and the pricing inputs are observed from actively quoted markets, as is the case with interest rate swap and option contracts. OTC derivative products valued using pricing models with significant observable inputs are categorized within Level 2 of the fair value hierarchy.

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

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

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

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

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

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

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

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

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

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

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

Net realized gain (loss) and net unrealized appreciation (depreciation), shown on the reconciliation of Level 3 investments, if applicable, are included on the Statement of Operations in net realized gain (loss) on investments in unaffiliated and/or affiliated securities and in net change in unrealized appreciation (depreciation) on investments in unaffiliated and/or affiliated securities, respectively. Additionally, the net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of September 30, 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 Natural Resources Fund enters into forward foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from foreign currencies (foreign currency exchange rate risk).

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

When a Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded as a liability. The amount of the liability is subsequently adjusted to reflect the current value of the option written. When an option expires on its stipulated expiration date or a Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the call option was sold), and the liability related to such option is extinguished. When a written call option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining whether a Fund has realized a gain or loss. When a written put is exercised, the cost basis of the instruments purchased by a Fund is reduced by the amount of the premium received.

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

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

Swap Agreements. Certain Funds may invest in swap agreements. Swaps are marked to market daily and changes in value are recorded as unrealized appreciation (depreciation) on the Statement of Operations. Payments received or made by the Fund are recorded as realized gain or loss on the Statement of Operations. Any upfront premiums paid are recorded as assets and any upfront fees received are recorded as liabilities and are shown as swap premiums paid and swap premiums received, respectively, if any, on the Statement of Assets and Liabilities and amortized over the term of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as realized gain or loss on the Statement of Operations.

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

Ivy Asset Strategy Fund enters into total return swaps to hedge exposure to a security or market.

The creditworthiness of the counterparty with which a Fund enters into a swap agreement is monitored by IICO. If a firm’s creditworthiness declines, the value of the agreement would likely decline, potentially resulting in losses. If a default occurs by the counterparty to such a transaction, the Fund will have contractual remedies pursuant to the agreement related to the transaction. The maximum loss a Fund may incur consists of the aggregate unrealized gain on appreciated contracts that is not collateralized.

Collateral and rights of offset. A Fund may mitigate credit risk with respect to OTC derivative counterparties through credit support annexes (“CSA”) included with an International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreement which is the standard contract governing most derivative transactions between the Fund and each of its counterparties. The CSA allows the Fund and its counterparty to offset certain derivative financial instruments’ payables and/or receivables against each other with collateral, which is generally held by the Fund’s custodian or broker. The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts specified in the CSA. To the extent amounts due to the Fund from its counterparties are not fully collateralized contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. See Note 2 “Segregation and Collateralization” for additional information with respect to collateral practices.

Offsetting of Assets and Liabilities. The following tables present financial instruments that are either (1) offset or (2) subject to an enforceable master netting arrangement or similar agreement as of September 30, 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 Asset Strategy Fund
Investments in unaffiliated securities at value*	$	448	$	—	$	448	$	(448	)	$	—	$	—		$	—
Swap agreements, at value		5,361		—		5,361		—			—		(4,700	)		661
Total	$	5,809	$	—	$	5,809	$	(448	)	$	—	$	(4,700	)	$	661
Ivy Science and Technology Fund
Investments in unaffiliated securities at value*	$	23	$	—	$	23	$	(4	)	$	—	$	—		$	19

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

2017 SEMIANNUAL REPORT 67

Liabilities

							Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented on the Statement of Assets and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Pledged			Cash Collateral Pledged		Net Amount Payable
Ivy Asset Strategy Fund
Written options at value	$	1,039	$	—	$	1,039	$	(448	)	$	(591	)	$	—	$	—
Ivy Natural Resources Fund
Unrealized depreciation on forward foreign currency contracts	$	1,746	$	—	$	1,746	$	—		$	(1,746	)	$	—	$	—
Ivy Science and Technology Fund
Written options at value		$4		$—	$	4		$(4)		$	—		$	—	$	—

Additional Disclosure Related to Derivative Instruments

Fair values of derivative instruments as of September 30, 2017:

		Assets			Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value		Statement of Assets & Liabilities Location	Value
Ivy Asset Strategy Fund	Equity	Investments in unaffiliated securities at value*	$	448	Written options at value	$	1,039
		Swap agreements, at value		5,361			—
Ivy Natural Resources Fund	Foreign currency			—	Unrealized depreciation on forward foreign currency contracts		1,746
Ivy Science and Technology Fund	Equity	Investments in unaffiliated securities at value*		23	Written options at value		4

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

Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 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 Asset Strategy Fund	Equity	$	(838	)	$	10,295	$	—	$	723	$	—		$	10,180
Ivy Natural Resources Fund	Foreign currency		—			—		—		—		(4,004	)		(4,004	)
Ivy Science and Technology Fund	Equity		198			—		—		957		—			1,155

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

Change in unrealized appreciation (depreciation) on derivatives recognized on the Statement of Operations for the period ended September 30, 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 Asset Strategy Fund	Equity	$	(566	)	$	(289	)	$	—	$	156	$	—		$	(699	)
Ivy Natural Resources Fund	Foreign currency		—			—			—		—		(1,031	)		(1,031	)
Ivy Science and Technology Fund	Equity		(1,932	)		—			—		219		—			(1,713	)

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

68 SEMIANNUAL REPORT 2017

During the period ended September 30, 2017, the average derivative volume was as follows:

Fund	Forward foreign currency contracts(1)		Long futures contracts(2)		Short futures contracts(2)		Swap agreements(3)		Purchased options(2)		Written options(2)
Ivy Asset Strategy Fund	$	—	$	—	$	—	$	70,961	$	155	$	223
Ivy Natural Resources Fund		784		—		—		—		—		—
Ivy Science and Technology Fund		—		—		—		—		717		409

(1) Average absolute value of unrealized appreciation/depreciation during the period.

(2) Average value outstanding during the period.

(3) Average notional amount outstanding during the period.

5. WRITTEN OPTION ACTIVITY ($ amounts in thousands)

Transactions in written options were as follows:

Fund	Outstanding at 3-31-17		Options written		Options closed			Options exercised			Options expired			Outstanding at 9-30-17
Ivy Asset Strategy Fund
Number of Contracts		N/A		12,465		(7,361	)		—			—			5,104
Notional Amount		N/A		1,246		(736	)		–			—			510
Premium Received		N/A	$	2,629	$	(1,434	)	$	—		$	—		$	1,195
Ivy Science and Technology Fund
Number of Contracts		N/A		108,348		(66,621	)		(9,368	)		(24,667	)		7,692
Notional Amount		N/A		10,835		(6,662	)		(937	)		(2,467	)		769
Premium Received		N/A	$	4,305	$	(3,251	)	$	(470	)	$	(361	)	$	223

6. BASIS FOR CONSOLIDATION OF THE IVY ASSET STRATEGY FUND

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

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

See the table below for details regarding the structure, incorporation and relationship as of September 30, 2017 of the Subsidiary and the Company to the Fund (amounts in thousands).

Subsidiary/Company	Date of Incorporation		Subscription Agreement		Fund Net Assets		Subsidiary Net Assets		Percentage of Fund Net Assets
Ivy ASF II, Ltd.		1-31-13		4-10-13	$	3,657,846	$	206,853		5.66	%
Ivy ASF III (SBP), LLC		4-9-13		4-23-13		3,657,846		18,727		0.51	%

2017 SEMIANNUAL REPORT 69

7. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS

($ amounts in thousands unless indicated otherwise)

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

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

For Funds managed solely by IICO, IICO has voluntarily agreed to waive a Fund’s management fee on any day that the Fund’s net assets are less than $25 million, subject to IICO’s right to change or modify this waiver. See Expense Reimbursements and/or Waivers below for amounts waived during the period ended September 30, 2017.

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

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

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.

Each Fund also pays WISC a monthly administrative fee at the annual rate of 0.01%, or one basis point, for the first $1 billion of net assets with no fee charged for net assets in excess of $1 billion. This fee is voluntarily waived by WISC until a Fund’s net assets are at least $10 million and is included in “Accounting services fee” on the Statement of Operations.

Shareholder Servicing. General. Under the Shareholder Servicing Agreement between the Trust and WISC, with respect to Class A, Class B, Class C and Class E shares, for each shareholder account that was in existence at any time during the prior month, each Fund pays a monthly fee that ranges from $1.5042 to $1.6958 per account; however, WISC has agreed to reduce

70 SEMIANNUAL REPORT 2017

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 B and Class C Shares. Under the Distribution and Service Plan, each Fund may pay IDI a service fee not to exceed 0.25% and a distribution fee not to exceed 0.75% of the Fund’s average annual net assets for Class B and Class C shares to compensate IDI for its services in connection with the distribution of shares of that class and/or provision of personal services to Class B or Class C shareholders and/or maintenance of shareholder accounts of that class.

Class R Shares. Under the Distribution and Service Plan, each Fund may pay IDI a fee of up to 0.50%, on an annual basis, of the average daily net assets of the Fund’s Class R shares to compensate IDI for, either directly or through third parties, distributing the Class R shares of that Fund, providing personal services to Class R shareholders and/or maintaining Class R shareholder accounts.

Class Y Shares. Under the Distribution and Service Plan, each Fund may pay IDI a fee of up to 0.25%, on an annual basis, of the average daily net assets of the Fund’s Class Y shares to compensate IDI for, either directly or through third parties, distributing the Class Y shares of that Fund, providing personal services to Class Y shareholders and/or maintaining Class Y shareholder accounts.

Sales Charges. As principal underwriter for the Trust’s shares, IDI receives sales commissions (which are not an expense of the Trust) for sales of Class A and Class E shares. A CDSC may be assessed against a shareholder’s redemption amount of Class B, Class C or certain Class A and Class E shares and is paid to IDI. During the period ended September 30, 2017, IDI received the following amounts in sales commissions and CDSCs:

	Gross Sales		CDSC											Commissions
	Commissions		Class A			Class B			Class C			Class E		Paid(1)
Ivy Advantus Real Estate Securities Fund	$	82	$	4		$	1		$	—	*	$	—	$	67
Ivy Asset Strategy Fund		161		1			97			25			—		158
Ivy Balanced Fund		243		—	*		59			22			—		245
Ivy Energy Fund		66		19			3			6			—		66
Ivy LaSalle Global Real Estate Fund		9		—			—			—	*		N/A		8
Ivy LaSalle Global Risk-Managed Real Estate Fund		12		—	*		—	*		1			N/A		11
Ivy Natural Resources Fund		105		—	*		2			1			—		89
Ivy Science and Technology Fund		368		—	*		50			10			—		349

* 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 71

Expense Reimbursements and/or Waivers. IICO, the Fund’s investment manager, IDI, the Fund’s distributor, and/or Waddell & Reed Services Company, doing business as WISC, the Fund’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any). Fund and class expense limitations and related waivers/reimbursements for the period ended September 30, 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 Advantus Real Estate Securities Fund	All Classes	Contractual	12-3-2012	7-31-2018	N/A		$	303	(1)	Investment Management Fee
	Class E	Contractual	8-1-2008	7-31-2018	1.43%		$	5		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Asset Strategy Fund	Class E	Contractual	8-1-2008	7-31-2018	1.00%		$	54		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Balanced Fund	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Energy Fund	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy LaSalle Global Real Estate Fund	All Classes	Contractual	1-12-2017	7-31-2018	N/A		$	68	(2)	Investment Management Fee
	Class A	Contractual	4-1-2013	7-31-2018	1.51%		$	5		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	1-12-2017	7-31-2018	1.05%		$	33		Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2018	1.05%		$	1		Shareholder Servicing
	Class Y	Contractual	4-1-2013	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy LaSalle Global Risk-Managed Real Estate Fund	All Classes	Contractual	1-12-2017	7-31-2018	N/A		$	22	(2)	Investment Management Fee
	Class A	Contractual	4-1-2013	7-31-2018	1.51%		$	23		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	8-1-2016	7-31-2018	1.16%		$	64		Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2018	Not to exceed Class I		$	—	*	Shareholder Servicing
	Class Y	Contractual	4-1-2013	7-31-2018	Not to exceed Class A		$	1		12b-1 Fees and/or Shareholder Servicing
Ivy Natural Resources Fund	Class E	Contractual	8-1-2008	7-31-2018	1.27%		$	22		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Science and Technology Fund	Class E	Contractual	8-1-2008	7-31-2018	1.30%		$	25		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A

* Not shown due to rounding.

(1) The Fund’s investment management fee is being reduced by 0.10% of average daily net assets until July 31, 2018.

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

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2017 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

72 SEMIANNUAL REPORT 2017

8. INTERFUND LENDING PROGRAM

Pursuant to an exemptive order issued by the SEC (“Order”), the Trust and the Advisors Fund Complex (Waddell & Reed Advisors Funds, Ivy Variable Insurance Portfolios and InvestEd Portfolios; referred to with the Funds for purposes of this section as Funds) have the ability to lend money to, and borrow money from, each other pursuant to a master interfund lending agreement (“Interfund Lending Program”). Under the Interfund Lending Program, the Funds may lend or borrow money for temporary purposes directly to or from one another (each an “Interfund Loan”), subject to meeting the conditions of the Order. The interest rate to be charged on an Interfund Loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The Funds made no Interfund Loans under the Interfund Lending Program during the period ended September 30, 2017.

9. AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands)

A summary of the transactions in affiliated companies during the period ended September 30, 2017 follows:

	3-31-17 Share Balance		Gross Additions		Gross Reductions			Realized Gain/ (Loss)			Distributions Received		9-30-17 Share Balance		9-30-17 Value		Net Change in Unrealized Appreciation/ (Depreciation)
Ivy Asset Strategy Fund
Media Group Holdings LLC, Series H(1)		640	$	—	$	—		$	—		$	—		640	$	3,000	$	(2,865	)
Media Group Holdings LLC, Series I		381		—		(123,222	)		(81,330	)		—		N/A		N/A		88,024
Media Group Holdings LLC, Series T(1)		80		—		—			—			—		80		15,140		(14,790	)
								$	(81,330	)	$	—			$	18,140	$	70,369
	3-31-17 Share Balance		Gross Additions		Gross Reductions			Realized Gain/ (Loss)			Distributions Received		9-30-17 Share Balance		9-30-17 Value		Net Change in Unrealized Appreciation/ (Depreciation)
Ivy Science and Technology Fund
ACI Worldwide, Inc.(1)		7,802	$	—	$	—		$	—		$	—		7,802	$	177,740	$	10,845
Arcadia Biosciences, Inc.(2)		2,456		—		(4,111	)		(3,760	)		—		N/A		N/A		17,784
Avinger, Inc.(2)		3,125		—		(20,598	)		(18,838	)		—		N/A		N/A		14,659
BioAmber, Inc.(2)		3,813		—		(30,425	)		(29,258	)		—		N/A		N/A		21,578
BioAmber, Inc., expires 5-9-17(2)		1,276		—		—			—			—		N/A		N/A		393
Evogene Ltd.(1)		1,465		—		—			—			—		1,465		6,461		(1,369	)
Marrone Bio Innovations, Inc.(1)		2,608		—		—			—			—		2,608		2,999		(2,086	)
Marrone Bio Innovations, Inc., expires 8-20-23		2,390		—		—			—			—		2,390		–		(95	)
Rambus, Inc.(1)		5,497		—		—			—			—		5,497		73,386		28,513
Silver Spring Networks, Inc.(2)		4,105		—		(73,361	)		(10,388	)		—		N/A		N/A		27,020
WNS (Holdings) Ltd. ADR(1)		5,463		—		(18,800	)		12,282			—		4,581		167,219		29,710
								$	(49,962	)	$	—			$	427,805	$	146,952
	3-31-17 Principal Balance										Interest Received		9-30-17 Principal Balance				Net Change in Unrealized Depreciation
Marrone Bio Innovations, Inc., 8.000%, 8-20-20	$	23,900	$	—	$	—		$	—		$	948	$	23,900	$	23,991	$	(12	)

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

(2) No longer affiliated as of September 30, 2017.

2017 SEMIANNUAL REPORT 73

10. INVESTMENT SECURITIES TRANSACTIONS ($ amounts in thousands)

The cost of purchases and the proceeds from maturities and sales of investment securities (excluding short-term securities) for the period ended September 30, 2017, were as follows:

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Advantus Real Estate Securities Fund	$	—	$	190,945	$	—	$	270,723
Ivy Asset Strategy Fund		—		344,758		1,019		1,200,372
Ivy Balanced Fund		14,078		268,998		5,155		638,207
Ivy Energy Fund		—		20,647		—		43,293
Ivy LaSalle Global Real Estate Fund		—		63,230		—		15,041
Ivy LaSalle Global Risk-Managed Real Estate Fund		—		16,119		—		26,484
Ivy Natural Resources Fund		—		36,468		—		121,586
Ivy Science and Technology Fund		—		435,955		—		791,026

11. CAPITAL SHARE TRANSACTIONS (All amounts in thousands)

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

	Ivy Advantus Real Estate Securities Fund												Ivy Asset Strategy Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		261		$	6,940			1,944		$	55,447			2,759		$	61,993			5,838		$	122,856
Class B		1			25			24			678			9			189			46			922
Class C		11			273			144			4,105			393			8,370			1,693			33,938
Class E		6			149			38			1,105			58			1,300			194			4,097
Class I		883			23,640			9,059			260,845			2,108			48,200			26,993			571,008
Class N		28			740			35			973			37			854			604			12,885
Class R		5			138			30			871			144			3,192			621			12,927
Class Y		64			1,693			531			15,402			211			4,765			1,161			24,456
Shares issued in reinvestment of distributions to shareholders:
Class A		16			439			1,018			26,334			—			—			—			—
Class B		—			—			13			323			—			—			—			—
Class C		—			—			59			1,496			—			—			—			—
Class E		—	*		7			14			369			—			—			—			—
Class I		32			864			735			18,999			—			—			—			—
Class N		1			19			10			274			—			—			—			—
Class R		—	*		1			4			109			—			—			—			—
Class Y		12			325			516			13,341			—			—			—			—
Shares redeemed:
Class A		(1,480	)		(39,342	)		(10,732	)		(305,675	)		(11,453	)		(257,320	)		(97,094	)		(2,039,468	)
Class B		(26	)		(662	)		(66	)		(1,790	)		(1,790	)		(37,737	)		(7,749	)		(154,123	)
Class C		(109	)		(2,826	)		(255	)		(6,917	)		(16,972	)		(360,379	)		(114,307	)		(2,289,013	)
Class E		(15	)		(388	)		(26	)		(733	)		(229	)		(5,169	)		(1,006	)		(21,241	)
Class I		(1,616	)		(43,225	)		(2,290	)		(63,768	)		(17,239	)		(387,588	)		(97,150	)		(2,069,199	)
Class N		(22	)		(587	)		(36	)		(1,017	)		(166	)		(3,777	)		(563	)		(12,093	)
Class R		(22	)		(578	)		(26	)		(735	)		(630	)		(13,976	)		(2,762	)		(57,472	)
Class Y		(760	)		(20,229	)		(1,375	)		(37,525	)		(2,588	)		(58,091	)		(14,846	)		(312,587	)
Net decrease		(2,730	)	$	(72,584	)		(632	)	$	(17,489	)		(45,348	)	$	(995,174	)		(298,327	)	$	(6,172,107	)

* Not shown due to rounding.

74 SEMIANNUAL REPORT 2017

	Ivy Balanced Fund												Ivy Energy Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,517		$	37,218			9,363		$	219,911			1,466		$	16,741			6,118		$	79,185
Class B		54			1,304			798			18,523			19			199			95			1,161
Class C		638			15,511			6,853			159,771			284			3,018			1,540			18,711
Class E		—			—			—			—			—			—			—			—
Class I		3,005			73,685			28,861			672,214			4,375			51,260			13,750			184,444
Class N		172			4,225			291			6,841			300			3,584			792			10,642
Class R		35			862			185			4,367			341			3,871			1,092			14,314
Class Y		128			3,132			1,032			24,290			1,605			18,637			3,569			48,220
Shares issued in reinvestment of distributions to shareholders:
Class A		230			5,649			775			18,249			—			—			—			—
Class B		13			322			49			1,150			—			—			—			—
Class C		132			3,209			503			11,750			—			—			—			—
Class E		—	*		2			—	*		2			—			—			—			—
Class I		243			5,974			690			16,284			—			—			—			—
Class N		5			131			11			253			—			—			—			—
Class R		4			90			10			244			—			—			—			—
Class Y		18			445			82			1,939			—			—			—			—
Shares redeemed:
Class A		(5,294	)		(129,933	)		(38,939	)		(909,674	)		(3,331	)		(37,550	)		(12,173	)		(154,744	)
Class B		(594	)		(14,408	)		(1,185	)		(27,833	)		(93	)		(969	)		(116	)		(1,373	)
Class C		(6,168	)		(150,040	)		(17,117	)		(402,578	)		(1,498	)		(15,720	)		(2,372	)		(29,004	)
Class E		—			—			—			—			—			—			—			—
Class I		(6,658	)		(163,327	)		(18,097	)		(429,246	)		(3,712	)		(43,084	)		(5,126	)		(69,280	)
Class N		(114	)		(2,807	)		(116	)		(2,754	)		(267	)		(3,092	)		(313	)		(4,201	)
Class R		(72	)		(1,764	)		(197	)		(4,683	)		(292	)		(3,351	)		(883	)		(11,675	)
Class Y		(917	)		(22,620	)		(3,621	)		(85,832	)		(1,494	)		(17,528	)		(3,456	)		(46,422	)
Net increase (decrease)		(13,623	)	$	(333,140	)		(29,769	)	$	(706,812	)		(2,297	)	$	(23,984	)		2,517		$	39,978

* Not shown due to rounding.

2017 SEMIANNUAL REPORT 75

	Ivy LaSalle Global Real Estate Fund												Ivy LaSalle Global Risk-Managed Real Estate Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended     9-30-17 (Unaudited)						Year ended         3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		81		$	851			450		$	4,678			122		$	1,321			4,447		$	49,992
Class B		—			—			4			42			—			—			29			334
Class C		3			33			31			321			9			101			536			6,071
Class I		5,272			54,635			2,332			23,824			2,408			26,180			7,668			84,172
Class N		4,713			49,275			N/A			N/A			30			317			N/A			N/A
Class R		—	*		4			1			13			175			1,882			22			251
Class Y		—	*		3			7			78			19			204			535			6,150
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			52			528			—			—			238			2,576
Class B		—			—			—	*		1			—			—			2			17
Class C		—			—			1			7			—			—			13			141
Class I		—			—			16			158			—			—			135			1,409
Class N		—			—			N/A			N/A			—			—			N/A			N/A
Class R		—			—			—			—			—			—			—			—
Class Y		—			—			—	*		1			—			—			5			51
Shares redeemed:
Class A		(303	)		(3,168	)		(2,127	)		(21,684	)		(1,660	)		(18,076	)		(7,037	)		(77,168	)
Class B		(3	)		(28	)		(4	)		(41	)		(5	)		(54	)		(36	)		(386	)
Class C		(13	)		(139	)		(26	)		(270	)		(145	)		(1,556	)		(171	)		(1,827	)
Class I		(4,858	)		(50,724	)		(676	)		(6,981	)		(1,992	)		(21,528	)		(2,879	)		(31,690	)
Class N		(246	)		(2,608	)		(N/A			N/A			(2	)		(25	)		N/A			N/A
Class R		(1	)		(10	)		—	*		(2	)		(10	)		(103	)		(4	)		(39	)
Class Y		—	*		(4	)		(22	)		(229	)		(38	)		(413	)		(433	)		(4,993	)
Net increase (decrease)		4,645		$	48,120			39		$	444			(1,089	)	$	(11,750	)		3,070		$	35,061

* Not shown due to rounding.

76 SEMIANNUAL REPORT 2017

	Ivy Natural Resources Fund												Ivy Science and Technology Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		888		$	12,516			2,526		$	35,828			1,203		$	72,672			3,424		$	168,361
Class B		2			26			26			312			22			1,100			68			2,863
Class C		88			1,031			439			5,259			330			17,395			1,021			44,274
Class E		13			189			69			1,026			37			2,259			82			4,083
Class I		1,121			16,355			9,500			136,570			3,203			211,692			12,351			658,557
Class N		140			1,997			181			2,741			259			17,170			734			38,993
Class R		127			1,744			593			8,413			295			17,335			513			25,118
Class Y		119			1,714			506			7,433			1,137			72,220			2,220			116,203
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			14			212			—			—			—			—
Class B		—			—			—			—			—			—			—			—
Class C		—			—			—			—			—			—			—			—
Class E		—			—			1			22			—			—			—			—
Class I		—			—			57			926			—			—			—			—
Class N		—			—			4			71			—			—			—			—
Class R		—			—			—			—			—			—			—			—
Class Y		—			—			6			100			—			—			—			—
Shares redeemed:
Class A		(2,942	)		(40,990	)		(13,419	)		(185,253	)		(2,734	)		(165,136	)		(23,945	)		(1,165,345	)
Class B		(181	)		(2,168	)		(371	)		(4,522	)		(204	)		(10,293	)		(402	)		(16,794	)
Class C		(1,657	)		(19,425	)		(2,764	)		(33,166	)		(2,062	)		(108,570	)		(7,661	)		(332,575	)
Class E		(41	)		(584	)		(84	)		(1,230	)		(31	)		(1,914	)		(84	)		(4,134	)
Class I		(2,370	)		(34,530	)		(5,210	)		(77,678	)		(4,365	)		(289,951	)		(17,919	)		(962,281	)
Class N		(202	)		(3,014	)		(382	)		(5,661	)		(390	)		(26,833	)		(525	)		(28,719	)
Class R		(306	)		(4,241	)		(768	)		(10,820	)		(305	)		(18,041	)		(975	)		(47,192	)
Class Y		(326	)		(4,699	)		(1,019	)		(14,998	)		(2,272	)		(144,291	)		(6,875	)		(359,516	)
Net decrease		(5,527	)	$	(74,079	)		(10,095	)	$	(134,415	)		(5,877	)	$	(353,186	)		(37,973	)	$	(1,858,104	)

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

For Federal income tax purposes, cost of investments owned at September 30, 2017 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Advantus Real Estate Securities Fund	$	435,089	$	135,125	$	5,443	$	129,682
Ivy Asset Strategy Fund		3,665,127		617,477		629,013		(11,536	)
Ivy Balanced Fund		1,721,311		289,101		82,993		206,108
Ivy Energy Fund		444,595		52,684		33,902		18,782
Ivy LaSalle Global Real Estate Fund		81,424		3,599		1,748		1,851
Ivy LaSalle Global Risk-Managed Real Estate Fund		101,717		5,027		3,899		1,128
Ivy Natural Resources Fund		594,251		104,031		82,501		21,530
Ivy Science and Technology Fund		2,127,270		2,172,915		100,633		2,072,282

2017 SEMIANNUAL REPORT 77

For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2017 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 Advantus Real Estate Securities Fund	$	223	$	33,280	$	—	$	5,709	$	—
Ivy Asset Strategy Fund		4,361		—		—		—		—
Ivy Balanced Fund		11,201		30,589		—		—		—
Ivy Energy Fund		—		—		—		—		1,201
Ivy LaSalle Global Real Estate Fund		—		36		—		—		—
Ivy LaSalle Global Risk-Managed Real Estate Fund		39		101		—		712		—
Ivy Natural Resources Fund		—		—		—		—		—
Ivy Science and Technology Fund		—		112,084		—		—		5,730

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

The tax character of dividends and distributions paid during the two fiscal years ended March 31, 2017 and 2016 were as follows:

	March 31, 2017				March 31, 2016
Fund	Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains		Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains
Ivy Advantus Real Estate Securities Fund	$	12,802	$	49,890	$	10,986	$	28,841
Ivy Asset Strategy Fund		—		—		37,222		959,717
Ivy Balanced Fund		28,198		28,965		48,087		100,678
Ivy Energy Fund		—		—		—		—
Ivy LaSalle Global Real Estate Fund		638		137		711		368
Ivy LaSalle Global Risk-Managed Real Estate Fund		3,629		1,360		912		528
Ivy Natural Resources Fund		1,442		—		—		—
Ivy Science and Technology Fund		—		—		—		144,996

(1) Includes short-term capital gains, if any.

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

Accumulated capital losses represent net capital loss carryovers as of March 31, 2017 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), a Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years which have only an eight year carryforward period. As a result of this ordering rule, pre-enactment capital loss carryovers may expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under the previous law. The Fund’s first fiscal year end subject to the Modernization Act was March 31, 2012. The following table shows the expiration dates for capital loss carryovers from pre-enactment taxable years and the amounts of capital loss carryovers, if any, by each of the applicable Funds electing to be taxed as a regulated investment company during the year ended March 31, 2017:

	Pre-Enactment				Post-Enactment
Fund	2018		2019		Short-Term Capital Loss Carryover		Long-Term Capital Loss Carryover
Ivy Advantus Real Estate Securities Fund	$	—	$	—	$	—	$	—
Ivy Asset Strategy Fund		—		—		70,840		—
Ivy Balanced Fund		—		—		—		—
Ivy Energy Fund		6,022		—		38,989		51,576
Ivy LaSalle Global Real Estate Fund		—		—		—		—
Ivy LaSalle Global Risk-Managed Real Estate Fund		—		—		—		—
Ivy Natural Resources Fund		1,529,206		—		263,604		357,904
Ivy Science and Technology Fund		—		—		—		—

78 SEMIANNUAL REPORT 2017

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENTS IVY FUNDS

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 15 and 16, 2017, the Board, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), unanimously approved the continuance of the Investment Management Agreement (the “Management Agreement”) between Ivy Investment Management Company (“IICO”) and the Trust, and the continuance of the Investment Subadvisory Agreements between IICO and:

• Advantus Capital Management, Inc. (with respect to Ivy Advantus Bond Fund and Ivy Advantus Real Estate Securities Fund);

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

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

• Pictet Asset Management Limited and Pictet Asset Management (Singapore) Pte Ltd. (with respect to the Ivy Emerging Markets Local Currency Debt Fund)

• Pictet Asset Management Limited and Pictet Asset Management SA (Ivy Targeted Return Bond Fund)

• Apollo Credit Management, LLC (Ivy Apollo Multi–Asset Income Fund and Ivy Apollo Strategic Income Fund)

Each such subadviser referred to herein as a “Subadviser.”

The Board’s Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO and the Subadvisers. Independent legal counsel explained the factors that the Board should consider as part of its review of the various agreements, all as outlined in a memorandum it had provided to the Board prior to the meeting, including, among other things, the nature and the quality of the services provided by IICO and the Subadvisers, profitability (including any fall-out benefits) from the relationships with each series of the Trust (each a “Fund” and together, the “Funds”), economies of scale, the role played by the Independent Trustees, and information on comparative fees and expenses. The Independent Trustees also considered the written responses and materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees’ legal counsel prior to the meeting, as well as materials produced in response to a follow-up request list sent to IICO by independent legal counsel on behalf of the Independent Trustees. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO, as well as an explanation of the methodology by which the profitability analysis was calculated. The Board also received extensive materials on performance, expenses and comparable fund information from Broadridge, Inc. (“Broadridge”), an independent mutual fund rating service. Finally, the Independent Trustees received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Trustees previously had reviewed and discussed these materials during a telephonic meeting in July 2017. They further reviewed these materials among themselves, with their independent legal counsel and the independent fee consultant, and with the other Board members at executive sessions of the Independent Trustees at the August 15^th and 16^th Board meeting, during which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board’s determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to the Funds by IICO and each Subadviser, taking into account the large amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence requests submitted by independent legal counsel to the Independent Trustees.

The Board also took into account the report from its Investment Oversight Committee (the “IOC”), in light of that committee’s duties to assist the Board in the 15(c) process. The IOC had reported to the Board on its review of the overall performance of the Funds, IICO’s investment risk management function, and the proposed and on-going changes IICO has been considering for itself, the Trust and the overall fund complex. As such, the Board examined all of IICO’s activities (both taken and proposed) in light of the Funds’ performance and expense structure, as well as the proposed overall rationalization of the fund complex, which is designed to provide economies of scale to the Funds’ shareholders, reduce the Funds’ expenses and enhance the performance of the Funds, particularly in the context of substantial industry change and regulatory developments.

The Board likewise considered the knowledge it had received from its regular meetings, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the other services provided to the Funds by IICO and each Subadviser (such as managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to each Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees,

2017 SEMIANNUAL REPORT 79

communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable laws and regulations). The Board also took into account the compliance environment at IICO and each Subadviser, noting the resources that each entity has dedicated towards compliance. The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with Funds

The Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. In that regard, the Board discussed the transfer agency/shareholder servicing fees that Waddell & Reed Services Company, an affiliate of IICO, provides the Funds. The Board also considered the benefits that accrue to each service provider organization from its respective relationship with the Funds, including the fact that a variety of services are provided by affiliates of IICO, including distribution, administrative and fund accounting services, and, as discussed above, shareholder servicing. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser nor any of their affiliates receives any additional direct or indirect benefits that would preclude the Board from approving the continuation of the Management Agreement with IICO or any Investment Subadvisory Agreement with a Subadviser.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds’ shareholders. The Board considered the significant number of initiatives that IICO is undertaking to seek to rationalize the fund complex, reduce expenses and enhance performance.

Performance of the Funds and Costs of Services Provided

The Board considered the performance of each Fund and the costs of the services provided, focusing on a number of Funds that the independent fee consultant had identified. Specifically, the Board examined the investment performance of each Fund, including the percentile ranking of each Fund over various periods of time. The Board also examined the performance of each Fund against its respective Lipper index for the same periods. After extensively reviewing all of the performance information provided, the Board concluded that the Funds’ performance in each asset class was acceptable. Although the performance of some of the focus Funds identified by the independent fee consultant lagged that of their peers or respective Lipper index, the Board recognized that IICO, or the applicable Subadviser, had taken, or was taking, steps to address that underperformance, and determined to continue to monitor closely the performance of those Funds.

The Board also considered the expenses and expense ratio of each Fund, and the expense limitation arrangements entered into by IICO in light of the services provided by IICO and each Subadviser. The Board also compared each Fund’s expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to other accounts in the same asset class for certain Funds. In that regard, the Board noted that IICO performs significant additional services for the Funds as compared to those other accounts. The Board also took into account the information on IICO’s profitability in managing the Funds, including the methodology used to calculate profitability. The Board finally considered the amount of assets in each Fund, each Fund’s average account size and how those factors affect the Funds’ expense ratios, noting that, as the Funds’ assets have increased or decreased over time, the expense ratios of the Funds generally have fallen or risen, respectively. After completing this examination, the Board concluded that each Fund’s expenses are appropriate at the current time.

Independent Fee Consultant Review

Independent legal counsel, on behalf of the Independent Trustees, engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO to the Funds. The independent fee consultant’s review addressed the following fee-related factors:

1. The nature, extent and quality of IICO’s services to the Funds;

2. Management fees and expenses in the context of performance;

3. Product category expenses, including peers;

4. Profit margins of IICO’s parent from supplying such services;

5. Subadviser and institutional fee analyses; and

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

80 SEMIANNUAL REPORT 2017

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

Summary Findings

The report stated that IICO delivered reasonable levels of performance in the longer-term periods and reasonable levels of service to the Funds in relation to its management fees as compared to the investment advisers of comparable funds. For the 36 months ended March 31, 2017, approximately 9% of the funds within the Waddell & Reed Fund Complex (including the Funds) were in the top quartile of performance and 33% of such funds were in the top two quartiles of performance, and that short-term performance of such funds were showing signs of improvement.    Specifically, the report noted that 42% of the funds were in the top two quartiles in the one-year period, and that 32% of all such funds had improving performance in their one-year period. The independent fee consultant noted that the funds’ performance appeared to be grounded in a number of institutional competitive advantages at IICO, including economic analysis, investment management depth, ability to attract top talent, strategic vision, performance-focused culture, and an effective trading infrastructure.

The report further indicated that total expenses of the Funds, on average, were 2% over the average total expenses of their respective Broadridge Expense Group peers and 3% below the average total expenses for their Broadridge Expense Universes. The management fees for the funds were 1% over the average management fees of their respective Broadridge Expense Group peers and 3% over the average management fees for their Broadridge Expense Universes.

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

The report stated that while it was difficult to confirm overall economies of scale, it was clear that the funds’ shareholders generally are benefitting from lower expenses as the funds’ assets grow through management fee breakpoints, decline in transfer agency expenses, decline in custody contract rates and declines in other non-management expenses.

The report also noted that the overall profitability of IICO’s parent is near the median of most similarly-sized, publicly-traded peers, but appears adequate to enable IICO to continue to provide quality support to the funds and their shareholders. Finally, the report noted that IICO has continued to invest time in board mergers and fund mergers, which could help drive down expenses for shareholders.

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

Conclusions

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

2017 SEMIANNUAL REPORT 81

PROXY VOTING INFORMATION IVY FUNDS

Proxy Voting Guidelines

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

Proxy Voting Records

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

QUARTERLY PORTFOLIO SCHEDULE INFORMATION IVY FUNDS

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

• On the SEC’s website at www.sec.gov.

• For review and copy at the SEC’s Public Reference Room in Washington, DC. Information on the operations of the Public Reference Room may be obtained by calling 1.800.SEC.0330.

TO ALL TRADITIONAL IRA PLANHOLDERS: IVY FUNDS

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

82 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 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 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

Index Funds

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

Ivy ProShares MSCI ACWI Index Fund

Speciality Funds

Ivy Advantus Real Estate Securities Fund

Ivy Apollo Multi-Asset Income Fund

Ivy Asset Strategy Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy LaSalle Global Real Estate Fund

Ivy LaSalle Global Risk-Managed Real Estate Fund

Ivy Natural Resources Fund

Ivy Science and Technology Fund

Fixed Income Funds

Ivy Advantus Bond Fund

Ivy Apollo Strategic Income Fund

Ivy California Municipal High Income Fund

Ivy Crossover Credit Fund

Ivy Global Bond Fund

Ivy Government 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 Fund

Ivy PineBridge High Yield 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 83

SEMIANN-IVYSPEC (9/17)

  Semiannual Report   September 30, 2017

Ticker

Class A

Class B

Class C

Class E

Class I

Class N

Class R

Class T

Class Y

IVY FUNDS

Ivy Advantus Bond Fund

IBOAX

IBOBX

IBOCX

IVBEX

IVBIX

IBNDX

IYBDX

IBOYX

Ivy Core Equity Fund

WCEAX

WCEBX

WTRCX

ICFEX

ICIEX

ICEQX

IYCEX

WCEYX

Ivy Cundill Global Value Fund

ICDAX

ICDBX

ICDCX

ICVIX

ICNGX

IYCUX

ICDYX

Ivy Dividend Opportunities Fund

IVDAX

IVDBX

IVDCX

IDIEX

IVDIX

IDOTX

IYDVX

IVDYX

Ivy Emerging Markets Equity Fund

IPOAX

IPOBX

IPOCX

IPOEX

IPOIX

IMEGX

IYPCX

IPOTX

IPOYX

Ivy European Opportunities Fund

IEOAX

IEOBX

IEOCX

IVEOX

IEOIX

IEURX

IYEUX

IEOYX

Ivy Global Bond Fund

IVSAX

IVSBX

IVSCX

IVSIX

IVBDX

IYGOX

IVSYX

Ivy Global Equity Income Fund

IBIAX

IBIBX

IBICX

IBIIX

IICNX

IYGEX

IBIYX

Ivy Global Growth Fund

IVINX

IVIBX

IVNCX

IIGEX

IGIIX

ITGRX

IYIGX

IVIYX

Ivy Global Income Allocation Fund

IVBAX

IVBBX

IVBCX

IIBEX

IIBIX

ILIAX

IYGBX

IVBYX

Ivy Government Money Market Fund

WRAXX

WRBXX

WRCXX

IVEXX

WRNXX

Ivy High Income Fund

WHIAX

WHIBX

WRHIX

IVHEX

IVHIX

IHIFX

IYHIX

WHITX

WHIYX

Ivy International Core Equity Fund

IVIAX

IIFBX

IVIFX

IICEX

ICEIX

IINCX

IYITX

IICTX

IVVYX

Ivy Large Cap Growth Fund

WLGAX

WLGBX

WLGCX

ILCEX

IYGIX

ILGRX

WLGRX

WLGYX

Ivy Limited-Term Bond Fund

WLTAX

WLTBX

WLBCX

IVLEX

ILTIX

ILMDX

IYLTX

WLTYX

Ivy Managed International Opportunities Fund

IVTAX

IVTBX

IVTCX

IVTEX

IVTIX

IVTNX

IYMGX

IVTYX

Ivy Micro Cap Growth Fund

IGWAX

IGWBX

IGWCX

IGWIX

IMIGX

IYMRX

IGWYX

Ivy Mid Cap Growth Fund

WMGAX

WMGBX

WMGCX

IMCEX

IYMIX

IGRFX

WMGRX

WMGYX

Ivy Mid Cap Income Opportunities Fund

IVOAX

IVOCX

IVOEX

IVOIX

IVOSX

IVORX

IVOYX

Ivy Municipal Bond Fund

WMBAX

WMBBX

WMBCX

IMBIX

IMBNX

WMBYX

Ivy Municipal High Income Fund

IYIAX

IYIBX

IYICX

WYMHX

IYINX

IYIYX

Ivy Small Cap Core Fund

IYSAX

IYSBX

IYSCX

IYVIX

IVVIX

ISPVX

IYSMX

IYCTX

IYSYX

Ivy Small Cap Growth Fund

WSGAX

WSGBX

WRGCX

ISGEX

IYSIX

IRGFX

WSGRX

IYSTX

WSCYX

Ivy Tax-Managed Equity Fund

IYEAX

IYEBX

IYECX

WYTMX

IYENX

IYEYX

Ivy Value Fund

IYVAX

IYVBX

IYVCX

IVVEX

IYAIX

IVALX

IYVLX

IYVYX

IVY INVESTMENTS^® 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 Advantus Bond Fund	12
Ivy Core Equity Fund	21
Ivy Cundill Global Value Fund	24
Ivy Dividend Opportunities Fund	27
Ivy Emerging Markets Equity Fund	30
Ivy European Opportunities Fund	34
Ivy Global Bond Fund	38
Ivy Global Equity Income Fund	44
Ivy Global Growth Fund	48
Ivy Global Income Allocation Fund	51
Ivy Government Money Market Fund	57
Ivy High Income Fund	59
Ivy International Core Equity Fund	69
Ivy Large Cap Growth Fund	74
Ivy Limited-Term Bond Fund	77
Ivy Managed International Opportunities Fund	83
Ivy Micro Cap Growth Fund	85
Ivy Mid Cap Growth Fund	88
Ivy Mid Cap Income Opportunities Fund	91
Ivy Municipal Bond Fund	94
Ivy Municipal High Income Fund	101
Ivy Small Cap Core Fund	109
Ivy Small Cap Growth Fund	112
Ivy Tax-Managed Equity Fund	116
Ivy Value Fund	119
Statements of Assets and Liabilities	122
Statements of Operations	126
Statements of Changes in Net Assets	130
Financial Highlights	140
Notes to Financial Statements	190
Renewal of Investment Management Agreements	228
Proxy Voting Information	231
Quarterly Portfolio Schedule Information	231
IRA Disclosure	231

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

2

PRESIDENT’S LETTER IVY FUNDS

	SEPTEMBER 30, 2017 (UNAUDITED)
Philip J. Sanders, CFA

Dear Shareholder,

Over the past six months, investors have endured concerns about global economic growth, the level of interest rates, fluctuation in oil prices and transition to a new U.S. presidential administration. Following the election, domestic equity markets rose sharply and bond yields saw a slight rise, with both trends carrying into the third quarter of 2017. See the table for a fiscal year-over-year comparison of some common market metrics.

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 your funds’ semi-annual fiscal period, the U.S. economy remained fundamentally sound, supported primarily by the U.S. consumer, who is benefitting from lower energy prices, lower inflation in general and an improved labor market. Overall, the global economy has improved over the past year. In particular, economic growth in the eurozone has accelerated, benefitting from domestic policy stimulus and improving external demand.

The U.S. Federal Reserve (Fed) has hiked interest rates four times since late 2015. We think the Fed will raise rates again in December 2017 and two more times in 2018. The Fed also recently announced that it would begin to reduce its balance sheet starting October 2017 by allowing maturing Treasury and mortgage-backed securities to roll off. We think most financial markets already are pricing the drawdown into their projections and do not expect major volatility as a result of the Fed’s actions. We believe job growth and inflation will be the most important

determinants in the direction of long-term central bank policy. Overseas, a better economic outlook has caused the European Central Bank to consider adjusting its policies.

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

Economic Snapshot

	9/30/2017		3/31/2017
S&P 500 Index		2,519.36		2,362.72
MSCI EAFE Index		1,973.81		1,792.98
10-Year Treasury Yield		2.33%		2.40%
U.S. unemployment rate		4.2%		4.5%
30-year fixed mortgage rate		3.83%		4.14%
Oil price per barrel	$	51.67	$	50.60

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 September 30, 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 7 to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy Advantus Bond Fund
Class A	$	1,000	$	1,028.00	$	5.27	$	1,000	$	1,019.84	$	5.25		1.04%
Class B**	$	1,000	$	1,023.00	$	10.22	$	1,000	$	1,015.00	$	10.18		2.01%
Class C	$	1,000	$	1,024.40	$	8.91	$	1,000	$	1,016.27	$	8.87		1.75%
Class E	$	1,000	$	1,028.00	$	5.27	$	1,000	$	1,019.87	$	5.25		1.04%
Class I	$	1,000	$	1,030.60	$	2.74	$	1,000	$	1,022.36	$	2.73		0.54%
Class N***	$	1,000	$	1,030.60	$	2.74	$	1,000	$	1,022.36	$	2.73		0.54%
Class R	$	1,000	$	1,026.70	$	6.59	$	1,000	$	1,018.59	$	6.56		1.29%
Class Y	$	1,000	$	1,028.50	$	4.87	$	1,000	$	1,020.31	$	4.85		0.95%

See footnotes on page 11.

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 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy Core Equity Fund
Class A	$	1,000	$	1,082.70	$	6.04	$	1,000	$	1,019.28	$	5.86		1.15%
Class B**	$	1,000	$	1,077.90	$	10.91	$	1,000	$	1,014.56	$	10.58		2.10%
Class C	$	1,000	$	1,078.70	$	9.98	$	1,000	$	1,015.46	$	9.67		1.92%
Class E	$	1,000	$	1,082.20	$	5.93	$	1,000	$	1,019.38	$	5.76		1.13%
Class I	$	1,000	$	1,084.60	$	4.38	$	1,000	$	1,020.83	$	4.24		0.84%
Class N***	$	1,000	$	1,085.20	$	3.96	$	1,000	$	1,021.23	$	3.84		0.77%
Class R	$	1,000	$	1,080.90	$	7.91	$	1,000	$	1,017.48	$	7.67		1.51%
Class Y	$	1,000	$	1,084.90	$	4.38	$	1,000	$	1,020.83	$	4.24		0.84%
Ivy Cundill Global Value Fund
Class A	$	1,000	$	1,056.60	$	8.23	$	1,000	$	1,017.03	$	8.07		1.60%
Class B**	$	1,000	$	1,050.10	$	15.27	$	1,000	$	1,010.19	$	14.98		2.97%
Class C	$	1,000	$	1,054.00	$	11.30	$	1,000	$	1,014.12	$	11.08		2.18%
Class I	$	1,000	$	1,059.30	$	6.07	$	1,000	$	1,019.18	$	5.96		1.18%
Class N***	$	1,000	$	1,060.30	$	5.15	$	1,000	$	1,020.10	$	5.05		0.99%
Class R	$	1,000	$	1,056.00	$	8.94	$	1,000	$	1,016.40	$	8.77		1.73%
Class Y	$	1,000	$	1,057.50	$	7.20	$	1,000	$	1,018.08	$	7.06		1.39%
Ivy Dividend Opportunities Fund
Class A	$	1,000	$	1,066.90	$	6.51	$	1,000	$	1,018.75	$	6.36		1.26%
Class B**	$	1,000	$	1,062.50	$	10.52	$	1,000	$	1,014.82	$	10.28		2.04%
Class C	$	1,000	$	1,062.50	$	10.11	$	1,000	$	1,015.29	$	9.87		1.95%
Class E	$	1,000	$	1,067.30	$	5.89	$	1,000	$	1,019.33	$	5.76		1.14%	(4)
Class I	$	1,000	$	1,068.30	$	5.07	$	1,000	$	1,020.18	$	4.95		0.97%
Class N***	$	1,000	$	1,069.10	$	4.24	$	1,000	$	1,021.01	$	4.14		0.81%
Class R	$	1,000	$	1,065.00	$	8.05	$	1,000	$	1,017.27	$	7.87		1.55%
Class Y	$	1,000	$	1,066.60	$	6.20	$	1,000	$	1,019.03	$	6.06		1.20%
Ivy Emerging Markets Equity Fund
Class A	$	1,000	$	1,179.40	$	8.06	$	1,000	$	1,017.63	$	7.47		1.49%
Class B**	$	1,000	$	1,173.50	$	13.58	$	1,000	$	1,012.62	$	12.58		2.49%
Class C	$	1,000	$	1,174.70	$	11.74	$	1,000	$	1,014.24	$	10.88		2.16%
Class E****	$	1,000	$	1,180.80	$	6.76	$	1,000	$	1,018.90	$	6.26		1.23%
Class I	$	1,000	$	1,182.00	$	5.46	$	1,000	$	1,020.10	$	5.05		0.99%
Class N***	$	1,000	$	1,182.20	$	5.35	$	1,000	$	1,020.19	$	4.95		0.97%
Class R	$	1,000	$	1,178.30	$	9.37	$	1,000	$	1,016.43	$	8.67		1.73%
Class T*****	$	1,000	$	1,114.20	$	6.45	$	1,000	$	1,018.95	$	6.16		1.21%
Class Y	$	1,000	$	1,180.10	$	7.52	$	1,000	$	1,018.14	$	6.96		1.38%

See footnotes on page 11.

2017 SEMIANNUAL REPORT 5

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy European Opportunities Fund
Class A	$	1,000	$	1,146.90	$	8.91	$	1,000	$	1,016.78	$	8.37		1.66%
Class B**	$	1,000	$	1,140.50	$	14.77	$	1,000	$	1,011.27	$	13.88		2.76%
Class C	$	1,000	$	1,142.90	$	12.32	$	1,000	$	1,013.53	$	11.58		2.31%
Class E****	$	1,000	$	1,148.60	$	7.09	$	1,000	$	1,018.51	$	6.66		1.31%
Class I	$	1,000	$	1,149.40	$	6.56	$	1,000	$	1,018.92	$	6.16		1.23%
Class N***	$	1,000	$	1,150.10	$	5.59	$	1,000	$	1,019.82	$	5.25		1.03%
Class R	$	1,000	$	1,146.00	$	9.66	$	1,000	$	1,016.09	$	9.07		1.79%
Class Y	$	1,000	$	1,147.80	$	7.73	$	1,000	$	1,017.87	$	7.26		1.44%
Ivy Global Bond Fund
Class A	$	1,000	$	1,024.90	$	5.16	$	1,000	$	1,020.10	$	5.05		1.01%	(5)
Class B**	$	1,000	$	1,021.10	$	8.89	$	1,000	$	1,016.34	$	8.77		1.76%	(6)
Class C	$	1,000	$	1,021.00	$	8.99	$	1,000	$	1,016.34	$	8.77		1.77%	(7)
Class I	$	1,000	$	1,026.30	$	3.85	$	1,000	$	1,021.36	$	3.74		0.77%	(8)
Class N***	$	1,000	$	1,026.20	$	3.85	$	1,000	$	1,021.27	$	3.84		0.76%	(8)
Class R	$	1,000	$	1,022.40	$	7.58	$	1,000	$	1,017.53	$	7.57		1.50%
Class Y	$	1,000	$	1,024.90	$	5.16	$	1,000	$	1,020.10	$	5.05		1.02%	(9)
Ivy Global Equity Income Fund
Class A	$	1,000	$	1,101.30	$	6.93	$	1,000	$	1,018.49	$	6.66		1.30%
Class B**	$	1,000	$	1,098.70	$	10.18	$	1,000	$	1,015.34	$	9.77		1.94%
Class C	$	1,000	$	1,098.60	$	10.28	$	1,000	$	1,015.31	$	9.88		1.95%
Class I	$	1,000	$	1,103.90	$	5.26	$	1,000	$	1,020.10	$	5.05		0.99%
Class N***	$	1,000	$	1,104.80	$	4.31	$	1,000	$	1,020.97	$	4.14		0.82%
Class R	$	1,000	$	1,100.70	$	8.19	$	1,000	$	1,017.22	$	7.87		1.57%
Class Y	$	1,000	$	1,101.90	$	6.31	$	1,000	$	1,019.11	$	6.06		1.19%
Ivy Global Growth Fund
Class A	$	1,000	$	1,100.60	$	7.46	$	1,000	$	1,017.94	$	7.16		1.42%
Class B**	$	1,000	$	1,095.00	$	12.99	$	1,000	$	1,012.65	$	12.48		2.48%
Class C	$	1,000	$	1,096.60	$	11.32	$	1,000	$	1,014.23	$	10.88		2.16%
Class E	$	1,000	$	1,102.00	$	6.41	$	1,000	$	1,019.01	$	6.16		1.21%
Class I	$	1,000	$	1,102.40	$	5.89	$	1,000	$	1,019.46	$	5.65		1.12%
Class N***	$	1,000	$	1,103.10	$	5.05	$	1,000	$	1,020.30	$	4.85		0.95%
Class R	$	1,000	$	1,099.00	$	8.92	$	1,000	$	1,016.54	$	8.57		1.70%
Class Y	$	1,000	$	1,100.80	$	7.14	$	1,000	$	1,018.25	$	6.86		1.36%

See footnotes on page 11.

6 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 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy Global Income Allocation Fund
Class A	$	1,000	$	1,046.50	$	6.45	$	1,000	$	1,018.80	$	6.36		1.25%
Class B**	$	1,000	$	1,041.60	$	10.92	$	1,000	$	1,014.42	$	10.78		2.13%
Class C	$	1,000	$	1,043.10	$	9.70	$	1,000	$	1,015.61	$	9.57		1.89%
Class E	$	1,000	$	1,045.60	$	6.75	$	1,000	$	1,018.45	$	6.66		1.32%
Class I	$	1,000	$	1,047.90	$	4.81	$	1,000	$	1,020.36	$	4.75		0.94%
Class N***	$	1,000	$	1,048.70	$	3.99	$	1,000	$	1,021.18	$	3.94		0.78%
Class R	$	1,000	$	1,044.50	$	7.87	$	1,000	$	1,017.38	$	7.77		1.53%
Class Y	$	1,000	$	1,046.90	$	6.04	$	1,000	$	1,019.20	$	5.96		1.17%
Ivy Government Money Market Fund
Class A	$	1,000	$	1,001.10	$	4.00	$	1,000	$	1,021.08	$	4.04		0.80%
Class B**	$	1,000	$	1,000.00	$	5.00	$	1,000	$	1,020.11	$	5.05		0.99%
Class C	$	1,000	$	1,000.00	$	5.00	$	1,000	$	1,020.07	$	5.05		1.00%
Class E	$	1,000	$	1,001.00	$	4.10	$	1,000	$	1,020.94	$	4.14		0.82%
Class N*****	$	1,000	$	1,001.30	$	3.00	$	1,000	$	1,022.07	$	3.03		0.60%
Ivy High Income Fund
Class A	$	1,000	$	1,039.00	$	4.89	$	1,000	$	1,020.31	$	4.85		0.95%
Class B**	$	1,000	$	1,035.00	$	8.75	$	1,000	$	1,016.47	$	8.67		1.72%
Class C	$	1,000	$	1,035.30	$	8.55	$	1,000	$	1,016.71	$	8.47		1.67%
Class E	$	1,000	$	1,037.70	$	6.11	$	1,000	$	1,019.10	$	6.06		1.19%	(10)
Class I	$	1,000	$	1,040.20	$	3.67	$	1,000	$	1,021.45	$	3.64		0.72%
Class N***	$	1,000	$	1,041.10	$	2.86	$	1,000	$	1,022.23	$	2.83		0.57%
Class R	$	1,000	$	1,037.10	$	6.62	$	1,000	$	1,018.53	$	6.56		1.30%
Class T*****	$	1,000	$	1,016.40	$	4.13	$	1,000	$	1,020.96	$	4.14		0.81%
Class Y	$	1,000	$	1,039.10	$	4.89	$	1,000	$	1,020.30	$	4.85		0.95%
Ivy International Core Equity Fund
Class A	$	1,000	$	1,091.30	$	6.59	$	1,000	$	1,018.73	$	6.36		1.26%
Class B**	$	1,000	$	1,086.40	$	11.27	$	1,000	$	1,014.30	$	10.88		2.15%
Class C	$	1,000	$	1,087.40	$	10.12	$	1,000	$	1,015.38	$	9.77		1.93%
Class E	$	1,000	$	1,090.70	$	6.79	$	1,000	$	1,018.53	$	6.56		1.30%
Class I	$	1,000	$	1,093.00	$	4.92	$	1,000	$	1,020.33	$	4.75		0.95%
Class N***	$	1,000	$	1,093.80	$	4.19	$	1,000	$	1,021.08	$	4.04		0.80%
Class R	$	1,000	$	1,089.60	$	8.04	$	1,000	$	1,017.35	$	7.77		1.54%
Class T*****	$	1,000	$	1,034.30	$	5.49	$	1,000	$	1,019.83	$	5.45		1.08%
Class Y	$	1,000	$	1,091.20	$	6.27	$	1,000	$	1,019.08	$	6.06		1.19%

See footnotes on page 11.

2017 SEMIANNUAL REPORT 7

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy Large Cap Growth Fund
Class A	$	1,000	$	1,117.90	$	6.14	$	1,000	$	1,019.29	$	5.86		1.15%
Class B**	$	1,000	$	1,113.30	$	10.78	$	1,000	$	1,014.91	$	10.28		2.03%
Class C	$	1,000	$	1,114.10	$	9.94	$	1,000	$	1,015.70	$	9.47		1.87%
Class E	$	1,000	$	1,118.00	$	6.14	$	1,000	$	1,019.29	$	5.86		1.15%
Class I	$	1,000	$	1,119.00	$	4.66	$	1,000	$	1,020.65	$	4.45		0.88%
Class N***	$	1,000	$	1,120.40	$	3.82	$	1,000	$	1,021.43	$	3.64		0.72%
Class R	$	1,000	$	1,115.40	$	7.83	$	1,000	$	1,017.70	$	7.47		1.47%
Class Y	$	1,000	$	1,118.20	$	5.61	$	1,000	$	1,019.75	$	5.35		1.06%
Ivy Limited-Term Bond Fund
Class A	$	1,000	$	1,012.40	$	4.53	$	1,000	$	1,020.61	$	4.55		0.89%
Class B**	$	1,000	$	1,007.70	$	9.14	$	1,000	$	1,015.95	$	9.17		1.82%
Class C	$	1,000	$	1,008.50	$	8.34	$	1,000	$	1,016.76	$	8.37		1.66%
Class E	$	1,000	$	1,011.90	$	4.93	$	1,000	$	1,020.15	$	4.95		0.98%
Class I	$	1,000	$	1,013.60	$	3.32	$	1,000	$	1,021.79	$	3.34		0.65%
Class N***	$	1,000	$	1,014.40	$	2.52	$	1,000	$	1,022.57	$	2.53		0.50%
Class R	$	1,000	$	1,010.50	$	6.33	$	1,000	$	1,018.75	$	6.36		1.26%
Class Y	$	1,000	$	1,012.40	$	4.53	$	1,000	$	1,020.61	$	4.55		0.89%
Ivy Managed International Opportunities Fund(3)
Class A	$	1,000	$	1,109.60	$	2.64	$	1,000	$	1,022.61	$	2.53		0.49%
Class B**	$	1,000	$	1,106.30	$	7.37	$	1,000	$	1,018.06	$	7.06		1.40%
Class C	$	1,000	$	1,106.90	$	6.74	$	1,000	$	1,018.67	$	6.46		1.28%
Class E****	$	1,000	$	1,110.50	$	2.11	$	1,000	$	1,023.11	$	2.02		0.39%
Class I	$	1,000	$	1,110.10	$	0.84	$	1,000	$	1,024.26	$	0.81		0.16%
Class N*****	$	1,000	$	1,056.40	$	0.82	$	1,000	$	1,024.30	$	0.81		0.14%
Class R	$	1,000	$	1,109.00	$	3.48	$	1,000	$	1,021.78	$	3.34		0.66%
Class Y	$	1,000	$	1,109.60	$	2.00	$	1,000	$	1,023.17	$	1.92		0.38%
Ivy Micro Cap Growth Fund
Class A	$	1,000	$	1,053.70	$	8.42	$	1,000	$	1,016.85	$	8.27		1.64%
Class B**	$	1,000	$	1,049.10	$	13.22	$	1,000	$	1,012.19	$	12.98		2.57%
Class C	$	1,000	$	1,049.60	$	12.40	$	1,000	$	1,012.99	$	12.18		2.41%
Class I	$	1,000	$	1,055.60	$	6.58	$	1,000	$	1,018.70	$	6.46		1.27%
Class N***	$	1,000	$	1,056.90	$	5.66	$	1,000	$	1,019.59	$	5.55		1.09%
Class R	$	1,000	$	1,052.70	$	9.44	$	1,000	$	1,015.84	$	9.27		1.84%
Class Y	$	1,000	$	1,054.80	$	7.60	$	1,000	$	1,017.62	$	7.47		1.49%

See footnotes on page 11.

8 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 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy Mid Cap Growth Fund
Class A	$	1,000	$	1,110.50	$	6.96	$	1,000	$	1,018.50	$	6.66		1.31%
Class B**	$	1,000	$	1,106.30	$	11.06	$	1,000	$	1,014.57	$	10.58		2.09%
Class C	$	1,000	$	1,106.70	$	10.74	$	1,000	$	1,014.88	$	10.28		2.03%
Class E	$	1,000	$	1,110.60	$	6.86	$	1,000	$	1,018.54	$	6.56		1.30%
Class I	$	1,000	$	1,112.00	$	5.39	$	1,000	$	1,019.92	$	5.15		1.03%
Class N***	$	1,000	$	1,113.20	$	4.65	$	1,000	$	1,020.65	$	4.45		0.88%
Class R	$	1,000	$	1,108.80	$	8.65	$	1,000	$	1,016.88	$	8.27		1.63%
Class Y	$	1,000	$	1,110.80	$	6.75	$	1,000	$	1,018.69	$	6.46		1.27%
Ivy Mid Cap Income Opportunities Fund
Class A	$	1,000	$	1,028.90	$	6.90	$	1,000	$	1,018.30	$	6.86		1.35%
Class C	$	1,000	$	1,026.10	$	10.54	$	1,000	$	1,014.69	$	10.48		2.07%
Class E	$	1,000	$	1,030.70	$	5.99	$	1,000	$	1,019.13	$	5.96		1.18%
Class I	$	1,000	$	1,030.50	$	5.38	$	1,000	$	1,019.80	$	5.35		1.05%
Class N***	$	1,000	$	1,032.00	$	4.78	$	1,000	$	1,020.33	$	4.75		0.95%
Class R	$	1,000	$	1,028.30	$	8.52	$	1,000	$	1,016.69	$	8.47		1.67%
Class Y	$	1,000	$	1,029.80	$	6.90	$	1,000	$	1,018.30	$	6.86		1.35%
Ivy Municipal Bond Fund
Class A	$	1,000	$	1,024.00	$	5.16	$	1,000	$	1,019.99	$	5.15		1.01%
Class B**	$	1,000	$	1,020.20	$	8.99	$	1,000	$	1,016.19	$	8.97		1.77%
Class C	$	1,000	$	1,020.20	$	8.99	$	1,000	$	1,016.14	$	8.97		1.78%
Class I	$	1,000	$	1,025.10	$	4.25	$	1,000	$	1,020.90	$	4.24		0.83%
Class N*****	$	1,000	$	1,010.90	$	3.42	$	1,000	$	1,021.69	$	3.44		0.71%
Class Y	$	1,000	$	1,023.90	$	5.26	$	1,000	$	1,019.99	$	5.15		1.03%	(11)
Ivy Municipal High Income Fund
Class A	$	1,000	$	1,020.80	$	4.45	$	1,000	$	1,020.63	$	4.45		0.88%
Class B**	$	1,000	$	1,017.30	$	8.17	$	1,000	$	1,016.92	$	8.17		1.62%
Class C	$	1,000	$	1,017.50	$	7.97	$	1,000	$	1,017.12	$	7.97		1.58%
Class I	$	1,000	$	1,021.70	$	3.44	$	1,000	$	1,021.64	$	3.44		0.68%
Class N*****	$	1,000	$	1,006.30	$	2.91	$	1,000	$	1,022.17	$	2.93		0.58%
Class Y	$	1,000	$	1,020.80	$	4.45	$	1,000	$	1,020.66	$	4.45		0.88%

See footnotes on page 11.

2017 SEMIANNUAL REPORT 9

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*		Beginning Account Value 3-31-17		Ending Account Value 9-30-17		Expenses Paid During Period*
Ivy Small Cap Core Fund
Class A	$	1,000	$	1,057.20	$	7.61	$	1,000	$	1,017.70	$	7.47		1.47%
Class B**	$	1,000	$	1,051.20	$	12.61	$	1,000	$	1,012.77	$	12.38		2.45%
Class C	$	1,000	$	1,053.30	$	11.09	$	1,000	$	1,014.25	$	10.88		2.16%
Class E	$	1,000	$	1,058.40	$	6.18	$	1,000	$	1,019.08	$	6.06		1.19%
Class I	$	1,000	$	1,058.90	$	5.66	$	1,000	$	1,019.53	$	5.55		1.11%
Class N***	$	1,000	$	1,059.50	$	4.84	$	1,000	$	1,020.33	$	4.75		0.94%
Class R	$	1,000	$	1,056.30	$	8.64	$	1,000	$	1,016.64	$	8.47		1.68%
Class T*****	$	1,000	$	1,039.50	$	6.02	$	1,000	$	1,019.14	$	5.96		1.18%
Class Y	$	1,000	$	1,057.30	$	6.99	$	1,000	$	1,018.23	$	6.86		1.36%
Ivy Small Cap Growth Fund
Class A	$	1,000	$	1,095.20	$	7.23	$	1,000	$	1,018.14	$	6.96		1.38%
Class B**	$	1,000	$	1,090.80	$	11.60	$	1,000	$	1,013.93	$	11.18		2.22%
Class C	$	1,000	$	1,091.00	$	10.77	$	1,000	$	1,014.77	$	10.38		2.05%
Class E	$	1,000	$	1,094.80	$	7.33	$	1,000	$	1,018.08	$	7.06		1.39%
Class I	$	1,000	$	1,096.50	$	5.66	$	1,000	$	1,019.67	$	5.45		1.08%
Class N***	$	1,000	$	1,097.50	$	4.82	$	1,000	$	1,020.47	$	4.65		0.92%
Class R	$	1,000	$	1,093.10	$	8.69	$	1,000	$	1,016.72	$	8.37		1.67%
Class T*****	$	1,000	$	1,036.20	$	6.21	$	1,000	$	1,018.92	$	6.16		1.23%
Class Y	$	1,000	$	1,095.50	$	6.92	$	1,000	$	1,018.46	$	6.66		1.32%
Ivy Tax-Managed Equity Fund
Class A	$	1,000	$	1,099.50	$	6.30	$	1,000	$	1,019.02	$	6.06		1.21%
Class B**	$	1,000	$	1,095.40	$	10.06	$	1,000	$	1,015.50	$	9.67		1.91%
Class C	$	1,000	$	1,095.20	$	10.48	$	1,000	$	1,015.10	$	10.08		1.99%
Class I	$	1,000	$	1,100.40	$	5.36	$	1,000	$	1,020.01	$	5.15		1.01%
Class N*****	$	1,000	$	1,061.30	$	4.33	$	1,000	$	1,020.82	$	4.24		0.85%
Class Y	$	1,000	$	1,099.30	$	6.30	$	1,000	$	1,019.02	$	6.06		1.21%
Ivy Value Fund
Class A	$	1,000	$	1,032.10	$	6.60	$	1,000	$	1,018.55	$	6.56		1.30%
Class B**	$	1,000	$	1,027.50	$	11.25	$	1,000	$	1,013.97	$	11.18		2.21%
Class C	$	1,000	$	1,028.70	$	9.94	$	1,000	$	1,015.31	$	9.87		1.95%
Class E****	$	1,000	$	1,033.30	$	5.39	$	1,000	$	1,019.75	$	5.35		1.06%
Class I	$	1,000	$	1,033.70	$	4.98	$	1,000	$	1,020.20	$	4.95		0.97%
Class N***	$	1,000	$	1,034.80	$	4.07	$	1,000	$	1,021.04	$	4.04		0.80%
Class R	$	1,000	$	1,031.10	$	8.02	$	1,000	$	1,017.21	$	7.97		1.57%
Class Y	$	1,000	$	1,032.10	$	6.50	$	1,000	$	1,018.64	$	6.46		1.28%

See footnotes on page 11.

10 SEMIANNUAL REPORT 2017

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 183 days in the six-month period ended September 30, 2017, and divided by 365.

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

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

**** Class share is closed to investment.

***** Actual inception date for this share class is 7-5-17 (the date on which shares were first acquired by shareholders). The calculations are based on 88 days in the period ended September 30, 2017.

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

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

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

(4) Annualized expense ratio based on the period excluding reorganization expenses was 1.13%.

(5) Annualized expense ratio based on the period excluding reorganization expenses was 0.99%.

(6) Annualized expense ratio based on the period excluding reorganization expenses was 1.74%.

(7) Annualized expense ratio based on the period excluding reorganization expenses was 1.74%.

(8) Annualized expense ratio based on the period excluding reorganization expenses was 0.74%.

(9) Annualized expense ratio based on the period excluding reorganization expenses was 0.99%.

(10) Annualized expense ratio based on the period excluding reorganization expenses was 1.11%.

(11) Annualized expense ratio based on the period excluding reorganization expenses was 1.01%.

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

2017 SEMIANNUAL REPORT 11

PORTFOLIO HIGHLIGHTS IVY ADVANTUS BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	0.8%
Bonds	96.1%
Corporate Debt Securities	42.0%
United States Government and Government Agency Obligations	32.8%
Asset-Backed Securities	12.2%
Mortgage-Backed Securities	8.1%
Municipal Bonds – Taxable	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.1%

Lipper Rankings

Category: Corporate Debt Funds A Rated	Rank	Percentile
1 Year	12/46		26
3 Year	20/45		44
5 Year	18/39		45
10 Year	24/33		71

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

Quality Weightings

Investment Grade	80.6%
AAA	5.4%
AA	31.3%
A	8.5%
BBB	35.4%
Non-Investment Grade	15.5%
BB	11.8%
B	0.3%
CCC	0.1%
Below CCC	0.0%
Non-rated	3.3%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities	3.9%

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. For securities not rated by Moody’s, ratings are obtained from Fitch. 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.

12 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY ADVANTUS BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

PREFERRED STOCKS	Shares		Value
Financials
Diversified Banks – 0.5%
Wells Fargo & Co., 5.850%		173	$	4,725
Total Financials – 0.5%				4,725
Real Estate
Health Care REITs – 0.3%
Ventas, Inc., 5.450%		100		2,546
Total Real Estate – 0.3%				2,546
TOTAL PREFERRED STOCKS – 0.8%			$	7,271
(Cost: $6,830)
ASSET-BACKED SECURITIES	Principal
Air Canada Enhanced Equipment Trust, Series 2015-2, Class AA,
6.625%, 5–15–18 (A)	$	460		471
Air Canada Pass Through Certificates, Series 2015-1, Class C,
5.000%, 3–15–20 (A)		5,030		5,143
America West Airlines, Inc., Pass Through Certificates, Series 1999-1,
7.930%, 1–2–19		367		378
America West Airlines, Inc., Pass Through Certificates, Series 2000-1,
8.057%, 7–2–20		662		745
American Airlines Class B Pass Through Certificates, Series 2013-2,
5.600%, 7–15–20 (A)		2,618		2,742
American Airlines Class B Pass Through Certificates, Series 2016-3,
3.750%, 10–15–25		4,000		4,012
American Airlines Pass-Through Trusts, Pass-Through Certificates, Series 2013-1,
3.700%, 5–1–23		1,613		1,617
American Airlines Pass-Through Trusts, Pass-Through Certificates, Series 2017-1B,
4.950%, 2–15–25		500		523
American Airlines, Inc., Class A Pass Through Certificates, Series 2013-2,
5.625%, 1–15–21 (A)		4,979		5,240
Aventura Mall Trust, Series 2013-AVM, Class B,
3.867%, 12–5–32 (A)		3,600		3,720
BNSF Funding Trust I,
6.613%, 12–15–55		8,292		9,515
Capital One Multi-Asset Execution Trust, Series 2004-B3 (1-Month U.S. LIBOR plus 73 bps),
1.964%, 1–18–22 (B)		2,000		2,007
CCG Receivables Trust, Series 2015-1, Class A3,
2.750%, 11–14–23 (A)		3,250		3,236

ASSET-BACKED SECURITIES (Continued)	Principal		Value
Chesapeake Funding II LLC 2017-2A, Class D:
3.710%, 5–15–29 (A)	$	800	$	806
3.380%, 8–15–29 (A)		2,500		2,491
Continental Airlines Pass Through Certificates, Series 2001-1 A-1,
8.048%, 11–1–20		452		500
Continental Airlines Pass Through Certificates, Series 2009-2,
7.250%, 11–10–19		1,165		1,280
Continental Airlines Pass Through Certificates, Series 2010-1B,
6.000%, 1–12–19		838		863
Continental Airlines, Inc. Class B Pass Through Certificates, Series 2012-1B,
6.250%, 4–11–20		1,513		1,596
CVS Caremark Corp. Pass-Through Trust:
6.036%, 12–10–28		3,495		3,949
6.943%, 1–10–30		2,893		3,428
Delta Air Lines, Inc. Class A Pass Through Certificates, Series 2010-2,
4.250%, 7–30–23		2,103		2,191
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1A,
4.750%, 5–7–20		1,251		1,307
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1B,
6.875%, 5–7–19 (A)		3,477		3,669
Earnest Student Loan Program LLC, Series 2016-B, Class A2:
8.250%, 4–17–23 (A)		7,000		7,435
3.020%, 5–25–34 (A)		2,380		2,392
Fan Engine Securitization Ltd., Series 2013-1X,
3.000%, 10–15–19 (A)(C)		446		441
Flagship Credit Auto Trust, Series 2016-1, Class D,
8.590%, 5–15–23 (A)		4,200		4,557
Foursight Capital Automobile Receivables Trust, Series 2016-1, Class B:
2.340%, 1–15–21 (A)		1,185		1,186
3.710%, 1–18–22 (A)		3,202		3,175
Hawaiian Airlines Pass Through Certificates, Series 2013-1,
4.950%, 1–15–22		3,660		3,770
Hyundai Auto Receivables Trust 2016-B, Class D,
2.680%, 9–15–23		2,520		2,499
Longtrain Leasing III LLC, Series 2015 A-2,
4.060%, 1–15–45 (A)		4,000		4,081
One Market Plaza Trust, Series 2017-1MKT,
3.614%, 2–10–32 (A)		4,000		4,153
Progress Residential Trust, Series 2017-SFR1, Class D,
3.565%, 8–17–34 (A)		2,750		2,762

ASSET-BACKED SECURITIES (Continued)	Principal		Value
SBA Tower Trust, Series 2013-1C (GTD by SBA Guarantor LLC and SBA Holdings LLC),
2.240%, 4–10–18 (A)	$	3,120	$	3,119
SoFi Professional Loan Program LLC, Series 2015-A2,
2.420%, 3–25–30 (A)		1,104		1,105
U.S. Airways, Inc. Class C Pass-Through Certificates, Series 2012-2,
5.450%, 6–3–18		3,700		3,760
U.S. Airways, Inc., Series 2012-2, Class A,
6.750%, 6–3–21		3,176		3,509
United Airlines Pass-Through Certificates, Series 2014-1B,
4.750%, 4–11–22		938		977
United Airlines Pass-Through Certificates, Series 2014-2B,
4.625%, 9–3–22		3,922		4,069
Virgin Australia 2013-1B Trust,
6.000%, 10–23–20 (A)		857		876
Wheels SPV LLC 2016-1A, Class A3,
1.870%, 5–20–25 (A)		925		922
TOTAL ASSET-BACKED SECURITIES – 12.2%			$	116,217
(Cost: $113,920)
CORPORATE DEBT SECURITIES
Consumer Discretionary
Automobile Manufacturers – 0.7%
Nissan Motor Acceptance Corp.,
2.150%, 9–28–20 (A)		6,375		6,381
Housewares & Specialties – 0.3%
Newell Rubbermaid, Inc.,
5.000%, 11–15–23		2,683		2,861
Leisure Products – 0.4%
Hasbro, Inc.,
3.500%, 9–15–27		4,475		4,421
Total Consumer Discretionary – 1.4%				13,663
Energy
Integrated Oil & Gas – 0.7%
National Fuel Gas Co.,
3.950%, 9–15–27		7,000		6,915
Oil & Gas Drilling – 0.1%
Noble Holding International Ltd.,
5.750%, 3–16–18 (D)		350		353
Oil & Gas Equipment & Services – 0.5%
Enterprise Products Operating L.P. (GTD by Enterprise Products Partners L.P.),
7.034%, 1–15–68		4,763		4,811

2017 SEMIANNUAL REPORT 13

SCHEDULE OF INVESTMENTS IVY ADVANTUS BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Exploration & Production – 0.6%
Enterprise Products Operating LLC (GTD by Enterprise Products Partners L.P.) (3-Month U.S. LIBOR plus 277.75 bps),
4.093%, 6–1–67 (B)	$	5,750	$	5,581
Oil & Gas Refining & Marketing – 0.8%
Marathon Petroleum Corp.,
5.850%, 12–15–45		2,000		2,197
NuStar Logistics L.P. (GTD by NuStar Energy L.P. and NuStar Pipeline Operating Partnership L.P.),
8.150%, 4–15–18 (D)		3,005		3,095
PBF Holding Co. LLC and PBF Finance Corp.,
7.250%, 6–15–25 (A)		2,500		2,556
				7,848
Oil & Gas Storage & Transportation – 5.9%
Boardwalk Pipelines L.P. (GTD by Boardwalk Pipeline Partners L.P.),
4.950%, 12–15–24		4,985		5,304
Boston Gas Co.,
3.150%, 8–1–27 (A)		950		950
Buckeye Partners L.P.,
5.600%, 10–15–44		5,231		5,448
Cheniere Corpus Christi Holdings LLC:
5.875%, 3–31–25		500		538
5.125%, 6–30–27 (A)		2,000		2,065
Enbridge Energy Partners L.P.,
7.375%, 10–15–45		5,000		6,438
Enbridge, Inc.,
6.000%, 1–15–77		2,225		2,358
EnLink Midstream Partners L.P.,
6.000%, 12–15–65		4,400		4,403
Gulfstream Natural Gas System LLC,
4.600%, 9–15–25 (A)		1,975		2,130
Regency Energy Partners L.P. and Regency Energy Finance Corp.:
6.500%, 7–15–21		3,600		3,672
5.875%, 3–1–22		3,000		3,320
Sabine Pass Liquefaction LLC,
5.750%, 5–15–24		3,500		3,899
Sunoco Logistics Partners Operations L.P. (GTD by Energy Transfer Partners L.P.),
5.400%, 10–1–47		2,750		2,799
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.),
6.850%, 2–15–40		1,265		1,422
TC PipeLines L.P.,
3.900%, 5–25–27		2,000		2,002
Tennessee Gas Pipeline Co.,
8.375%, 6–15–32		4,000		5,157
Tesoro Logistics L.P. and Tesoro Logistics Finance Corp.:
6.125%, 10–15–21		1,000		1,032
6.375%, 5–1–24		250		271

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Storage & Transportation (Continued)
5.250%, 1–15–25	$	2,500	$	2,678
				55,886
Total Energy – 8.6%				81,394
Financials
Consumer Finance – 3.9%
Capital One Bank USA N.A. (3-Month U.S. LIBOR plus 76.5 bps),
2.082%, 9–13–19 (B)		9,175		9,235
Capital One Financial Corp., Series E,
5.550%, 12–29–49		3,570		3,726
Discover Bank:
8.700%, 11–18–19		458		512
3.100%, 6–4–20		1,220		1,248
3.450%, 7–27–26		3,975		3,906
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.):
2.400%, 5–9–19		1,000		1,004
3.500%, 7–10–19		1,645		1,685
3.950%, 4–13–24		3,800		3,891
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.) (3-Month U.S. LIBOR plus 127 bps),
2.569%, 10–4–19 (B)		6,850		6,955
Hyundai Capital America,
2.750%, 9–18–20 (A)		5,000		4,995
				37,157
Diversified Banks – 2.4%
Bank of America Corp.:
4.000%, 1–22–25		3,250		3,362
3.950%, 4–21–25		1,515		1,560
Comerica, Inc.,
4.000%, 7–27–25		2,150		2,219
Compass Bank,
3.875%, 4–10–25		5,750		5,736
HSBC Holdings plc,
3.262%, 3–13–23		3,600		3,673
U.S. Bancorp,
5.300%, 12–29–49		4,000		4,360
Wells Fargo & Co.,
3.000%, 10–23–26		1,500		1,464
				22,374
Investment Banking & Brokerage – 2.2%
Charles Schwab Corp. (The),
4.625%, 12–29–49		4,200		4,305
Goldman Sachs Group, Inc. (The),
5.250%, 7–27–21		1,000		1,099
Morgan Stanley:
5.500%, 7–28–21		1,090		1,209
3.125%, 7–27–26		1,400		1,372
5.450%, 12–29–29		4,950		5,105
Morgan Stanley (3-Month U.S. LIBOR plus 122 bps),
2.532%, 5–8–24 (B)		4,650		4,708

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Investment Banking & Brokerage (Continued)
Raymond James Financial, Inc.,
4.950%, 7–15–46	$	3,200	$	3,439
				21,237
Life & Health Insurance – 1.6%
Great-West Lifeco Finance L.P. (GTD by Great-West Lifeco, Inc.),
4.150%, 6–3–47 (A)		5,000		5,134
Teachers Insurance & Annuity Association of America,
4.270%, 5–15–47 (A)		5,000		5,164
Unum Group,
5.750%, 8–15–42		3,750		4,462
				14,760
Other Diversified Financial Services – 2.0%
Citigroup, Inc.,
4.400%, 6–10–25		5,000		5,274
JPMorgan Chase & Co.,
5.000%, 12–29–49		4,975		5,060
Sammons Financial Group, Inc.,
4.450%, 5–12–27 (A)		3,900		4,008
TIAA Asset Management Finance Co. LLC:
2.950%, 11–1–19 (A)		2,500		2,541
4.125%, 11–1–24 (A)		2,125		2,237
				19,120
Property & Casualty Insurance – 1.8%
Chubb Corp. (The) (3-Month U.S. LIBOR plus 225 bps),
3.554%, 4–15–37 (B)		9,903		9,848
Liberty Mutual Group, Inc. (3-Month U.S. LIBOR plus 290.5 bps),
4.225%, 3–15–37 (A)(B)		7,700		7,527
				17,375
Regional Banks – 1.0%
SunTrust Banks, Inc.,
5.050%, 12–15–65		4,225		4,320
Synovus Financial Corp.:
7.875%, 2–15–19		3,025		3,252
5.750%, 12–15–25		2,000		2,134
				9,706
Specialized Finance – 1.3%
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.:
5.450%, 6–15–23 (A)		4,540		4,980
8.350%, 7–15–46 (A)		2,930		3,743
Peachtree Corners Funding Trust,
3.976%, 2–15–25		3,147		3,204
				11,927
Total Financials – 16.2%				153,656
Health Care
Health Care Facilities – 0.3%
HCA, Inc. (GTD by HCA Holdings, Inc.),
5.000%, 3–15–24		1,000		1,065

14 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY ADVANTUS BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care Facilities (Continued)
NYU Hospitals Center,
4.428%, 7–1–42	$	2,170	$	2,271
				3,336
Health Care Supplies – 0.3%
Bio-Rad Laboratories, Inc.,
4.875%, 12–15–20		2,500		2,683
Total Health Care – 0.6%				6,019
Industrials
Airlines – 0.4%
British Airways plc,
5.625%, 6–20–20 (A)		952		995
U.S. Airways Group, Inc., Class A,
6.250%, 4–22–23		2,742		3,077
				4,072
Building Products – 0.5%
Allegion U.S. Holding Co., Inc. (GTD by Allegion plc),
3.200%, 10–1–24		5,000		4,974
Industrial Conglomerates – 0.3%
Textron, Inc.,
3.375%, 3–1–28		3,000		2,977
Office Services & Supplies – 0.4%
Pitney Bowes, Inc.,
3.625%, 9–15–20		3,250		3,256
Total Industrials – 1.6%				15,279
Information Technology
Application Software – 0.6%
Block Financial LLC (GTD by H&R Block, Inc.),
4.125%, 10–1–20		5,000		5,196
Technology Distributors – 0.4%
Tech Data Corp.,
3.700%, 2–15–22		3,650		3,680
Technology Hardware, Storage & Peripherals – 0.5%
Hewlett Packard Enterprise Co.,
2.100%, 10–4–19 (A)		4,950		4,951
Total Information Technology – 1.5%				13,827
Materials
Aluminum – 0.1%
Kaiser Aluminum Corp.,
5.875%, 5–15–24		1,000		1,070
Construction Materials – 0.2%
USG Corp.,
4.875%, 6–1–27 (A)		2,000		2,088

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Industrial Gases – 0.5%
AmeriGas Partners L.P. and AmeriGas Finance Corp.:
5.500%, 5–20–25	$	700	$	719
5.750%, 5–20–27		3,600		3,681
				4,400
Total Materials – 0.8%				7,558
Real Estate
Health Care REITs – 0.5%
Omega Healthcare Investors, Inc.,
4.500%, 1–15–25		2,175		2,206
Physicians Realty L.P. (GTD by Physicians Realty Trust),
4.300%, 3–15–27		2,450		2,504
				4,710
Specialized REITs – 1.0%
Crown Castle International Corp.,
6.113%, 1–15–20 (A)		3,270		3,494
CyrusOne L.P. and CyrusOne Finance Corp. (GTD by CyrusOne, Inc. and CyrusOne G.P.),
5.000%, 3–15–24 (A)		500		526
Hospitality Properties Trust:
4.500%, 6–15–23		1,775		1,881
4.650%, 3–15–24		1,200		1,256
Ventas Realty L.P. (GTD by Ventas, Inc.),
3.100%, 1–15–23		2,300		2,310
				9,467
Total Real Estate – 1.5%				14,177
Telecommunication Services
Integrated Telecommunication Services – 0.9%
AT&T, Inc.:
3.400%, 8–14–24		6,550		6,558
4.500%, 3–9–48		1,930		1,778
				8,336
Wireless Telecommunication Service – 0.1%
SBA Communications Corp.,
4.000%, 10–1–22 (A)		1,250		1,250
Total Telecommunication Services – 1.0%				9,586
Utilities
Electric Utilities – 5.8%
Cleco Corporate Holdings LLC:
3.743%, 5–1–26 (D)		2,200		2,215
4.973%, 5–1–46 (D)		2,075		2,229
El Paso Electric Co.,
5.000%, 12–1–44		2,225		2,440
Exelon Corp.,
2.500%, 6–1–22 (D)		3,425		3,527
Exelon Generation Co. LLC,
3.400%, 3–15–22		7,600		7,807
FirstEnergy Corp., Series C,
4.850%, 7–15–47		2,125		2,229

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Electric Utilities (Continued)
Indianapolis Power & Light Co.,
4.700%, 9–1–45 (A)	$	3,150	$	3,347
IPALCO Enterprises, Inc.:
3.450%, 7–15–20		2,300		2,323
3.700%, 9–1–24 (A)		2,650		2,656
NextEra Energy Operating Partners L.P. (GTD by NextEra Energy Partners L.P. and NextEra Energy U.S. Partners Holdings LLC),
4.250%, 9–15–24 (A)		1,800		1,838
Oncor Electric Delivery Co.,
3.800%, 9–30–47 (A)		4,500		4,529
Pennsylvania Electric Co.,
3.250%, 3–15–28 (A)		3,550		3,503
PPL Capital Funding, Inc. (GTD by PPL Corp.) (3-Month LIBOR plus 266.5 bps),
3.998%, 3–30–67 (B)		10,000		9,825
Southern Power Co., Series F,
4.950%, 12–15–46		6,190		6,578
				55,046
Gas Utilities – 1.4%
AGL Capital Corp.,
3.875%, 11–15–25		7,050		7,252
Brooklyn Union Gas Co.,
4.504%, 3–10–46 (A)		2,875		3,139
El Paso Natural Gas Co. LLC,
8.375%, 6–15–32 (D)		2,000		2,578
				12,969
Independent Power Producers & Energy Traders – 0.4%
AES Corp. (The),
6.000%, 5–15–26		4,000		4,300
Multi-Utilities – 1.2%
Dominion Resources, Inc.,
5.750%, 10–1–54		3,300		3,564
NiSource Finance Corp.,
3.950%, 3–30–48		8,250		8,126
				11,690
Total Utilities – 8.8%				84,005
TOTAL CORPORATE DEBT SECURITIES – 42.0%			$	399,164
(Cost: $389,403)
MORTGAGE-BACKED SECURITIES
Commercial Mortgage-Backed Securities – 5.5%
7 WTC Depositor LLC Trust 2012-WTC Commercial Mortgage Pass-Through Certificates, Series 2012-7WTC,
4.082%, 3–13–31 (A)		491		494
BAMLL Commercial Mortgage Securities Trust 2014-520M, Class A,
4.325%, 8–15–46 (A)		4,130		4,417

2017 SEMIANNUAL REPORT 15

SCHEDULE OF INVESTMENTS IVY ADVANTUS BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

MORTGAGE-BACKED SECURITIES (Continued)	Principal		Value
Commercial Mortgage-Backed Securities (Continued)
Banc of America Commercial Mortgage, Inc., Commercial Mortgage Pass-Through Certificates, Series 2003-2,
3.311%, 2–15–50	$	3,000	$	3,049
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-SMPD,
3.008%, 1–12–30 (A)		1,240		1,241
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-GC35, Class A4,
3.209%, 5–10–49		4,085		4,120
Credit Suisse Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2014-ICE, Class B,
3.304%, 9–15–37 (A)		1,500		1,527
Credit Suisse Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2014-ICE, Class B (Mortgage spread to 10-year U.S. Treasury index),
3.500%, 6–25–47 (A)(B)		4,775		4,758
GS Mortgage Securities Corp. Trust, Commercial Mortgage Pass-Through Certificates, Series 2012-BWTR,
3.440%, 11–5–34 (A)		1,000		991
GS Mortgage Securities Trust 2011-GC5,
3.433%, 5–10–50		6,500		6,668
Hometown Commercial Capital LLC, Hometown Commercial Mortgage Pass-Through Notes 2006-1,
5.506%, 11–11–38 (A)		34		33
Hometown Commercial Trust, Commercial Mortgage-Backed Notes, Series 2007-1,
6.057%, 6–11–39 (A)		22		13
JPMorgan Chase Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2016-JP3 (10-Year U.S. Treasury index plus 110 bps),
3.648%, 12–15–49 (B)		575		600
JPMorgan Chase Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2017-JP5,
3.723%, 3–15–50		1,500		1,574
Mellon Residential Funding,
6.750%, 6–25–28		1		1
Multi Security Asset Trust L.P., Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4,
5.880%, 11–28–35 (A)		515		514

MORTGAGE-BACKED SECURITIES (Continued)	Principal			Value
Commercial Mortgage-Backed Securities (Continued)
UBS Commercial Mortgage Trust, Series 2017-C1, Class AS,
3.724%, 6–15–50	$	8,000		$	8,168
Vornado DP LLC Trust 2010, Commercial Mortgage Pass-Through Certificates, Series 2010-VNO,
5.280%, 9–13–28 (A)		1,200			1,272
Wells Fargo Commercial Mortgage Trust, Series 2016-BNK1, Class AS:
2.814%, 8–15–49		4,600			4,463
3.640%, 12–15–59		700			728
Wells Fargo Commercial Mortgage Trust, Series 2017-BNK7, Class A5,
3.435%, 9–15–60		7,000			7,170
WFRBS Commercial Mortgage Trust 2011-C5 (3-Year U.S. Treasury index plus 145 bps),
3.667%, 11–15–44 (B)		435			455
					52,256
Other Mortgage-Backed Securities – 2.6%
Bear Stearns Mortgage Securities, Inc.,
8.000%, 11–25–29		106			78
C-Bass 2006-MH1 Trust (Mortgage spread to 1-year U.S. Treasury index),
6.250%, 10–25–36 (A)(B)		1,216			1,235
CHL Mortgage Pass-Through Trust 2004-J4,
5.250%, 5–25–34		71			69
Collateralized Mortgage Obligation Trust,
5.000%, 7–1–18		—	*		—	*
CountryPlace Manufactured Housing Contract Trust 2005-1 (Mortgage spread to 3-year U.S. Treasury index),
5.200%, 12–15–35 (A)(B)		263			272
CWHEQ Home Equity Loan Trust, Series 2007-S2 (Mortgage spread to 2-year U.S. Treasury index),
5.934%, 5–25–37 (B)		260			258
GMACM Home Equity Loan Trust 2007-HE1 (1-Month U.S. LIBOR plus 14 bps),
5.952%, 8–25–37 (B)		498			517
Green Tree Financial Corp., Manufactured Housing Contract, Pass-Through Certificates, Series 1993-3A7,
6.400%, 10–15–18		2			2
Invitation Homes Trust, Series 2014-SFR2 (1-Month U.S. LIBOR plus 110 bps),
2.327%, 9–17–31 (A)(B)		949			951
JPMorgan Mortgage Trust 2004-A3 (Mortgage spread to 10-year U.S. Treasury index),
3.836%, 7–25–34 (B)		111			113

MORTGAGE-BACKED SECURITIES (Continued)	Principal			Value
Other Mortgage-Backed Securities (Continued)
JPMorgan Mortgage Trust 2006-A2 (Mortgage spread to 7-year U.S. Treasury index),
3.375%, 10–25–46 (A)(B)	$	3,073		$	2,957
JPMorgan Mortgage Trust 2013-2, Class B3 (Mortgage spread to 7-year U.S. Treasury index),
3.656%, 5–25–43 (A)(B)		2,868			2,899
JPMorgan Mortgage Trust 2013-2, Class B4 (Mortgage spread to 5-year U.S. Treasury index),
3.656%, 5–25–43 (A)(B)		1,788			1,784
JPMorgan Mortgage Trust 2014-2 (Mortgage spread to 5-year U.S. Treasury index),
3.426%, 6–25–29 (A)(B)		1,716			1,728
Merrill Lynch Mortgage Investors, Inc., Mortgage Pass-Through Certificates, Series 1997-C2,
6.250%, 12–10–29		171			170
Morgan Stanley BAML Trust, Series 2016-C32,
3.720%, 12–15–49		320			335
Morgan Stanley Capital I Trust 2012-STAR, Class A-2,
3.201%, 8–5–34 (A)		1,350			1,357
Morgan Stanley Capital I Trust 2012-STAR, Class B,
3.451%, 8–5–34 (A)		930			932
Prudential Home Mortgage Securities:
6.730%, 4–28–24 (A)		—	*		—	*
7.805%, 9–28–24 (A)		1			1
RASC, Series 2003-KS10 Trust,
6.410%, 12–25–33		158			107
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1,
5.729%, 12–25–30		742			52
Sequoia Mortgage Trust 2012-5, Class B2 (Mortgage spread to 3-year U.S. Treasury index),
3.898%, 11–25–42 (B)		4,735			4,883
Sequoia Mortgage Trust 2015-3, Class B1 (Mortgage spread to 7-year U.S. Treasury index),
3.716%, 7–25–45 (A)(B)		3,987			4,064
Structured Asset Mortgage Investments, Inc.,
1.308%, 5–2–30		6			1
					24,765
TOTAL MORTGAGE-BACKED SECURITIES – 8.1%				$	77,021
(Cost: $78,234)
MUNICIPAL BONDS – TAXABLE
Alabama – 0.1%
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013T,
3.435%, 12–15–25		470			483

16 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY ADVANTUS BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS – TAXABLE (Continued)	Principal		Value
New York – 0.7%
Port Auth of NY & NJ Consolidated Bonds, 168th Ser,
4.926%, 10–1–51	$	2,690	$	3,238
Port Auth of NY & NJ Consolidated Bonds, Ser 174,
4.458%, 10–1–62		3,000		3,360
				6,598
Washington – 0.2%
Pub Util Dist No. 1, Douglas Cnty, WA, Wells Hydroelec Bonds, Ser 2010A,
5.450%, 9–1–40		1,205		1,418
TOTAL MUNICIPAL BONDS – TAXABLE – 1.0%			$	8,499
(Cost: $7,251)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations – 21.6%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO,
5.300%, 1–15–33		68		75
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 130 bps),
2.537%, 4–25–29 (B)		670		679
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 220 bps),
3.437%, 9–25–24 (B)		2,750		2,840
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 280 bps):
4.037%, 5–25–28 (B)		1,925		1,988
6.037%, 5–25–28 (B)		3,700		4,233
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 330 bps):
5.937%, 4–25–28 (B)		5,000		5,747
6.387%, 10–25–29 (B)		4,000		4,230
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 515 bps),
6.387%, 11–25–28 (B)		3,110		3,576
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 95 bps),
2.187%, 10–25–29 (B)		5,700		5,144
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 30-year U.S. Treasury index),
4.000%, 8–25–56 (A)(B)		1,466		1,460
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates:
5.500%, 12–1–17		1		1
5.500%, 9–1–19		26		26
5.000%, 4–1–23		168		178
3.500%, 8–1–26		502		526
2.500%, 3–1–28		533		541

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
2.500%, 4–1–28	$	502	$	509
5.000%, 5–1–29		44		48
3.500%, 5–1–32		1,096		1,145
6.500%, 9–1–32		35		41
6.000%, 11–1–33		42		49
5.500%, 5–1–34		368		416
6.500%, 5–1–34		103		118
5.500%, 6–1–34		108		121
5.000%, 9–1–34		1		1
5.500%, 9–1–34		4		4
5.500%, 10–1–34		153		171
5.500%, 7–1–35		50		56
5.000%, 8–1–35		46		50
5.500%, 10–1–35		53		59
5.000%, 11–1–35		124		135
5.000%, 12–1–35		26		28
6.500%, 7–1–36		27		30
7.000%, 12–1–37		32		35
5.500%, 2–1–39		249		279
5.000%, 11–1–39		117		130
5.000%, 1–1–40		685		758
5.000%, 3–1–40		1,154		1,281
5.000%, 4–1–40		232		255
5.000%, 8–1–40		209		228
4.000%, 10–1–40		502		533
4.000%, 11–1–40		737		791
4.500%, 1–1–41		583		627
4.000%, 2–1–41		1,274		1,358
4.000%, 3–1–41		410		439
4.500%, 3–1–41		282		305
4.500%, 4–1–41		861		938
4.000%, 6–1–41		465		498
4.000%, 8–1–41		295		313
4.000%, 11–1–41		3,266		3,468
3.500%, 3–1–42		1,650		1,714
3.000%, 8–1–42		1,081		1,091
3.500%, 8–1–42		2,813		2,917
3.000%, 1–1–43		1,363		1,376
3.000%, 2–1–43		1,692		1,708
3.500%, 7–1–44		2,080		2,151
3.500%, 12–1–44		4,118		4,249
3.500%, 5–25–45		5,135		5,204
3.000%, 7–1–45		4,902		4,921
3.500%, 3–1–46		2,325		2,399
3.000%, 10–25–46		1,509		1,502
Federal National Mortgage Association Agency REMIC/CMO,
2.898%, 6–25–27		675		672
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 365 bps),
4.887%, 9–25–29 (B)		2,350		2,486
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 440 bps),
5.637%, 1–25–24 (B)		4,000		4,493
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 445 bps),
5.687%, 1–25–29 (B)		4,000		4,383

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 550 bps),
6.737%, 9–25–29 (B)	$	1,650	$	1,691
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.000%, 1–1–18		2		2
5.500%, 2–1–18		2		2
5.500%, 3–1–18		1		1
5.000%, 5–1–18		12		13
5.000%, 6–1–18		3		3
5.000%, 7–1–18		2		2
5.000%, 10–1–18		14		14
5.500%, 9–1–19		9		9
3.000%, 9–1–22		538		553
5.000%, 7–1–23		94		103
6.000%, 8–1–23		100		106
5.500%, 2–1–24		41		45
4.500%, 4–1–25		147		155
3.500%, 11–1–25		306		320
3.500%, 6–1–26		472		492
2.500%, 11–1–27		940		947
6.000%, 8–1–29		38		44
7.500%, 5–1–31		17		19
7.000%, 9–1–31		7		7
7.000%, 11–1–31		79		89
6.500%, 12–1–31		8		9
6.500%, 2–1–32		78		89
7.000%, 2–1–32		62		71
7.000%, 3–1–32		94		109
6.500%, 4–1–32		15		17
6.500%, 5–1–32		31		34
6.500%, 7–1–32		9		11
6.500%, 8–1–32		15		16
6.000%, 9–1–32		16		18
6.500%, 9–1–32		34		38
6.000%, 10–1–32		287		329
6.500%, 10–1–32		38		44
6.000%, 11–1–32		207		238
3.500%, 12–1–32		1,553		1,623
6.000%, 3–1–33		341		391
5.500%, 4–1–33		256		288
6.000%, 4–1–33		11		12
5.500%, 5–1–33		25		28
6.000%, 6–1–33		70		79
6.500%, 8–1–33		14		15
6.000%, 10–1–33		39		44
6.000%, 12–1–33		67		76
5.500%, 1–1–34		59		67
5.500%, 1–1–34		59		67
6.000%, 1–1–34		38		43
5.000%, 3–1–34		210		232
5.000%, 3–1–34		20		22
5.500%, 3–1–34		24		27
5.500%, 4–1–34		23		25
5.000%, 5–1–34		13		14
6.000%, 8–1–34		62		71
5.500%, 9–1–34		179		201
6.000%, 9–1–34		72		82
6.500%, 9–1–34		187		210
5.500%, 11–1–34		207		230

2017 SEMIANNUAL REPORT 17

SCHEDULE OF INVESTMENTS IVY ADVANTUS BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
6.000%, 11–1–34	$	96	$	108
6.500%, 11–1–34		6		7
5.000%, 12–1–34		339		374
5.500%, 1–1–35		170		191
5.500%, 1–1–35		23		26
5.500%, 2–1–35		476		534
5.500%, 2–1–35		52		58
6.500%, 3–1–35		137		157
5.000%, 4–1–35		63		69
5.500%, 4–1–35		122		136
4.500%, 5–1–35		216		233
5.500%, 6–1–35		7		8
4.500%, 7–1–35		184		198
5.000%, 7–1–35		376		414
5.000%, 7–1–35		78		86
5.500%, 7–1–35		53		59
5.500%, 8–1–35		7		8
5.500%, 10–1–35		257		288
5.500%, 11–1–35		133		149
5.500%, 12–1–35		146		163
5.000%, 2–1–36		34		38
5.500%, 2–1–36		55		59
6.500%, 2–1–36		26		29
5.500%, 9–1–36		175		197
5.500%, 11–1–36		66		73
6.000%, 11–1–36		45		51
6.000%, 1–1–37		34		38
6.000%, 5–1–37		86		99
5.500%, 6–1–37		47		53
6.000%, 8–1–37		45		51
6.000%, 9–1–37		46		53
7.000%, 10–1–37		16		17
5.500%, 3–1–38		169		193
5.000%, 4–1–38		216		239
5.500%, 5–1–38		54		60
6.000%, 10–1–38		139		157
6.000%, 12–1–38		105		119
4.500%, 6–1–39		132		143
5.000%, 12–1–39		322		359
5.500%, 12–1–39		193		216
5.000%, 3–1–40		727		806
6.000%, 6–1–40		86		98
4.500%, 10–1–40		703		761
4.000%, 12–1–40		886		937
3.500%, 4–1–41		1,746		1,811
4.000%, 4–1–41		1,098		1,171
4.500%, 4–1–41		1,627		1,772
5.000%, 4–1–41		178		196
4.500%, 7–1–41		837		905
4.000%, 8–1–41		665		703
4.000%, 9–1–41		1,066		1,135
3.500%, 10–1–41 TBA		9,725		10,022
4.000%, 10–1–41		1,211		1,290
3.500%, 11–1–41		2,797		2,900
3.500%, 1–1–42		3,491		3,616
3.000%, 3–1–42		1,059		1,068
3.500%, 4–1–42		5,031		5,208
3.500%, 8–1–42		1,705		1,768
3.000%, 9–1–42		1,796		1,811
3.000%, 10–1–42		6,000		6,016
3.500%, 1–1–43		938		971
3.500%, 2–1–43		1,259		1,309

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
3.500%, 3–1–43	$	1,750	$	1,818
3.000%, 5–1–43		6,306		6,358
4.000%, 1–1–44		1,064		1,139
4.000%, 4–1–44		2,876		3,031
3.500%, 5–1–45		2,123		2,195
3.500%, 6–1–45		1,728		1,789
3.500%, 7–1–45		1,571		1,624
3.500%, 8–1–45		2,063		2,135
3.500%, 9–1–45		1,358		1,404
3.000%, 12–1–45		1,412		1,417
3.000%, 1–1–46		3,769		3,784
4.000%, 2–1–47		988		1,049
3.500%, 8–1–47		4,958		5,113
Government National Mortgage Association Agency REMIC/CMO:
0.643%, 7–16–40 (E)		117		—	*
0.011%, 6–17–45 (E)		342		—	*
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
6.250%, 7–15–24		51		55
4.000%, 8–20–31		612		650
5.000%, 7–15–33		142		156
5.000%, 7–15–34		104		114
5.500%, 12–15–34		129		145
5.000%, 1–15–35		139		153
3.250%, 11–20–35		617		639
5.000%, 12–15–35		237		261
4.000%, 6–20–36		978		1,039
5.500%, 7–15–38		137		155
5.500%, 10–15–38		161		186
5.500%, 2–15–39		43		49
5.000%, 12–15–39		124		138
5.000%, 1–15–40		757		832
4.500%, 6–15–40		372		404
5.000%, 7–15–40		194		213
4.000%, 12–20–40		492		525
4.000%, 1–15–41		588		623
4.000%, 10–15–41		352		373
3.500%, 10–20–43		1,513		1,581
4.000%, 12–20–44		549		582
3.500%, 2–20–45		2,507		2,610
3.000%, 3–15–45		3,321		3,367
3.000%, 3–20–45		1,657		1,681
3.500%, 3–20–45		1,683		1,752
3.500%, 4–20–45		3,790		3,946
3.500%, 4–20–46		1,230		1,280
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 1 (Mortgage spread to 3-year U.S. Treasury index),
6.931%, 2–15–25 (B)		51		55
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 2,
7.793%, 2–15–25		14		16
				205,434

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 21.6%			$	205,434
(Cost: $204,209)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 11.2%
U.S. Treasury Bonds:
5.375%, 2–15–31 (F)	$	4,940		6,611
3.000%, 5–15–47		23,852		24,526
U.S. Treasury Notes:
1.250%, 5–31–19		2,850		2,841
1.500%, 5–15–20		4,500		4,490
1.500%, 6–15–20		630		628
1.500%, 7–15–20		2,345		2,338
1.875%, 7–31–22		33,425		33,341
1.625%, 8–31–22		1,665		1,642
2.000%, 4-30-24		8,015		7,950
2.125%, 7–31–24		7,743		7,728
1.875%, 8–31–24		9,000		8,836
2.250%, 8–15–27		5,700		5,659
				106,590
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 11.2%			$	106,590
(Cost: $106,540)
SHORT-TERM SECURITIES
Commercial Paper (G) – 4.6%
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.),
1.180%, 10–5–17		5,000		4,999
Harley-Davidson Financial Services(GTD by Harley-Davidson Credit Corp.),
1.490%, 10–12–17		5,000		4,997
John Deere Canada ULC (GTD by Deere & Co.),
1.190%, 10–23–17		15,000		14,989
Kellogg Co.,
1.341%, 10–2–17		13,000		12,999
Kroger Co. (The),
1.300%, 10–2–17		5,712		5,711
				43,695
Master Note – 0.4%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (H)		3,711		3,711
Municipal Obligations – 0.2%
NYC Hsng Dev Corp., Multi-Fam Mtg Rev Bonds (Markham Gardens Apt), Ser 2006A (GTD by FHLMC) (BVAL plus 14 bps),
0.990%, 10–7–17 (H)		2,000		2,000

18 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY ADVANTUS BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

	Value
TOTAL SHORT-TERM SECURITIES – 5.2%	$	49,406
(Cost: $49,408)
TOTAL INVESTMENT SECURITIES – 102.1%	$	969,602
(Cost: $955,795)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.1)%		(19,819	)
NET ASSETS – 100.0%	$	949,783

Notes to Schedule of Investments

* Not shown due to rounding.

(A) 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 September 30, 2017 the total value of these securities amounted to $185,349 or 19.5% of net assets.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

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

(D) 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 September 30, 2017.

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

(F) All or a portion of securities with an aggregate value of $375 have been pledged as collateral on open futures contracts.

(G) Rate shown is the yield to maturity at September 30, 2017.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 futures contracts were outstanding at September 30, 2017 (contracts unrounded):

Description	Type		Number of Contracts		Expiration Date		Notional Amount		Value			Unrealized Appreciation (Depreciation)
U.S. 5 Year Treasury Note		Long		374		12–4–17		37,400	$	43,945		$	(337	)
U.S. 10 Year Treasury Note		Short		208		12–29–17		20,800		(26,065	)		298
U.S. Treasury Long Bond		Short		11		12–29–17		1,100		(1,681	)		30
									$	16,199		$	(9	)

2017 SEMIANNUAL REPORT 19

SCHEDULE OF INVESTMENTS IVY ADVANTUS BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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
Preferred Stocks	$	7,271	$	—	$	—
Asset-Backed Securities		—		115,776		441
Corporate Debt Securities		—		399,164		—
Mortgage-Backed Securities		—		77,021		—
Municipal Bonds		—		8,499		—
United States Government Agency Obligations		—		205,434		—
United States Government Obligations		—		106,590		—
Short-Term Securities		—		49,406		—
Total	$	7,271	$	961,890	$	441
Futures Contracts	$	328	$	—	$	—
Liabilities
Futures Contracts	$	337	$	—	$	—

During the period ended September 30, 2017, there were no transfers between any levels.

The following acronyms are used throughout this schedule:

BVAL = Bloomberg Valuation Municipal AAA Benchmark

CMO = Collateralized Mortgage Obligation

FHLMC = Federal Home Loan Mortgage Corp.

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trust

REMIC = Real Estate Mortgage Investment Conduit

TBA = To Be Announced

See Accompanying Notes to Financial Statements.

20 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY CORE EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	98.0%
Information Technology	34.3%
Financials	17.9%
Health Care	11.5%
Industrials	9.7%
Consumer Staples	9.4%
Consumer Discretionary	7.3%
Energy	4.2%
Materials	3.7%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.0%

Lipper Rankings

Category: Large-Cap Core Funds	Rank	Percentile
1 Year	724/790		92
3 Year	671/713		94
5 Year	559/640		88
10 Year	209/492		43

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

Top 10 Equity Holdings

Company	Sector	Industry
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
Microsoft Corp.	Information Technology	Systems Software
Morgan Stanley	Financials	Investment Banking & Brokerage
Alphabet, Inc., Class A	Information Technology	Internet Software & Services
JPMorgan Chase & Co.	Financials	Other Diversified Financial Services
UnitedHealth Group, Inc.	Health Care	Managed Health Care
PayPal, Inc.	Information Technology	Data Processing & Outsourced Services
Blackstone Group L.P. (The)	Financials	Asset Management & Custody Banks
Applied Materials, Inc.	Information Technology	Semiconductor Equipment
Monster Beverage Corp.	Consumer Staples	Soft Drinks

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

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

2017 SEMIANNUAL REPORT 21

SCHEDULE OF INVESTMENTS IVY CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 2.1%
Magna International, Inc.		356	$	18,982
Cable & Satellite – 1.9%
Charter Communications, Inc., Class A (A)		16		5,924
Comcast Corp., Class A		291		11,198
				17,122
Home Improvement Retail – 2.1%
Home Depot, Inc. (The)		116		18,915
Housewares & Specialties – 1.2%
Newell Rubbermaid, Inc.		244		10,420
Total Consumer Discretionary – 7.3%				65,439
Consumer Staples
Brewers – 1.2%
Molson Coors Brewing Co., Class B		131		10,662
Hypermarkets & Super Centers – 2.0%
Costco Wholesale Corp.		111		18,302
Packaged Foods & Meats – 1.4%
Kraft Foods Group, Inc.		157		12,176
Soft Drinks – 2.4%
Monster Beverage Corp. (A)		395		21,829
Tobacco – 2.4%
Philip Morris International, Inc.		189		21,000
Total Consumer Staples – 9.4%				83,969
Energy
Oil & Gas Exploration & Production – 4.2%
Cimarex Energy Co.		132		14,997
EOG Resources, Inc.		187		18,090
Pioneer Natural Resources Co.		32		4,766
				37,853
Total Energy – 4.2%				37,853
Financials
Asset Management & Custody Banks – 2.7%
Blackstone Group L.P. (The)		719		23,976
Diversified Banks – 3.2%
Bank of America Corp.		561		14,211
Wells Fargo & Co.		254		13,998
				28,209
Financial Exchanges & Data – 2.2%
CME Group, Inc.		146		19,836
Investment Banking & Brokerage – 4.9%
Charles Schwab Corp. (The)		354		15,497
Morgan Stanley		592		28,531
				44,028

COMMON STOCKS (Continued)	Shares		Value
Other Diversified Financial Services – 4.9%
Citigroup, Inc.		239	$	17,356
JPMorgan Chase & Co.		273		26,055
				43,411
Total Financials – 17.9%				159,460
Health Care
Biotechnology – 1.8%
Alexion Pharmaceuticals, Inc. (A)		117		16,432
Health Care Equipment – 2.1%
Intuitive Surgical, Inc. (A)		18		18,512
Managed Health Care – 4.7%
Cigna Corp.		90		16,787
UnitedHealth Group, Inc.		130		25,539
				42,326
Pharmaceuticals – 2.9%
Eli Lilly and Co.		102		8,742
Zoetis, Inc.		267		17,018
				25,760
Total Health Care – 11.5%				103,030
Industrials
Aerospace & Defense – 4.5%
Airbus SE (B)		99		9,380
Lockheed Martin Corp.		51		15,732
United Technologies Corp.		133		15,485
				40,597
Construction Machinery & Heavy Trucks – 1.6%
WABCO Holdings, Inc. (A)		97		14,371
Railroads – 1.6%
Norfolk Southern Corp.		109		14,441
Trucking – 2.0%
J.B. Hunt Transport Services, Inc.		157		17,439
Total Industrials – 9.7%				86,848
Information Technology
Application Software – 2.2%
Adobe Systems, Inc. (A)		134		19,975
Data Processing & Outsourced Services – 6.7%
MasterCard, Inc., Class A		109		15,365
PayPal, Inc. (A)		380		24,344
Visa, Inc., Class A		192		20,164
				59,873
Home Entertainment Software – 1.9%
Electronic Arts, Inc. (A)		146		17,178

COMMON STOCKS (Continued)	Shares		Value
Internet Software & Services – 5.2%
Alphabet, Inc., Class A (A)		29	$	28,433
Facebook, Inc., Class A (A)		104		17,846
				46,279
Semiconductor Equipment – 5.0%
Applied Materials, Inc.		444		23,128
ASML Holding N.V., NY Registry Shares		123		21,006
				44,134
Semiconductors – 4.5%
Analog Devices, Inc.		217		18,690
Broadcom Corp., Class A		89		21,562
				40,252
Systems Software – 4.4%
Microsoft Corp.		526		39,159
Technology Hardware, Storage & Peripherals – 4.4%
Apple, Inc.		256		39,378
Total Information Technology – 34.3%				306,228
Materials
Commodity Chemicals – 1.5%
LyondellBasell Industries N.V., Class A		133		13,183
Diversified Chemicals – 2.2%
Dow Chemical Co. (The)		290		20,049
Total Materials – 3.7%				33,232
TOTAL COMMON STOCKS – 98.0%			$	876,059
(Cost: $697,740)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 1.4%
Sonoco Products Co., 1.330%, 10-2-17	$	7,598		7,597
Virginia Electric and Power Co., 1.290%, 10-5-17		5,000		4,999
				12,596
Master Note – 0.7%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), 1.450%, 10-4-17 (D)		5,870		5,870
TOTAL SHORT-TERM SECURITIES – 2.1%			$	18,466
(Cost: $18,467)
TOTAL INVESTMENT SECURITIES – 100.1%			$	894,525
(Cost: $716,207)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)%				(662	)
NET ASSETS – 100.0%			$	893,863

22 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

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

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

(C) Rate shown is the yield to maturity at September 30, 2017.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	876,059	$	—	$	—
Short-Term Securities		—		18,466		—
Total	$	876,059	$	18,466	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

LIBOR = London Interbank Offered Rate

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 23

PORTFOLIO HIGHLIGHTS IVY CUNDILL GLOBAL VALUE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	99.7%
Financials	27.4%
Consumer Discretionary	15.5%
Health Care	12.8%
Energy	10.9%
Industrials	10.6%
Information Technology	10.0%
Materials	6.3%
Telecommunication Services	2.5%
Real Estate	1.9%
Consumer Staples	1.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.3%

Lipper Rankings

Category: Global Multi-Cap Value Funds	Rank	Percentile
1 Year	28/97		29
3 Year	80/83		96
5 Year	42/59		70
10 Year	27/38		70

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

Country Weightings

North America	64.0%
United States	61.4%
Other North America	2.6%
Europe	21.0%
United Kingdom	10.3%
France	5.9%
Other Europe	4.8%
Pacific Basin	13.7%
Japan	5.0%
South Korea	4.5%
Other Pacific Basin	4.2%
Other	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.3%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Citigroup, Inc.	United States	Financials	Other Diversified Financial Services
Wells Fargo & Co.	United States	Financials	Diversified Banks
Bank of America Corp.	United States	Financials	Diversified Banks
Fiat S.p.A.	United Kingdom	Consumer Discretionary	Automobile Manufacturers
Liberty Global, Inc., Series A	United States	Consumer Discretionary	Cable & Satellite
American International Group, Inc.	United States	Financials	Multi-Line Insurance
Chesapeake Energy Corp., 5.750%, Series A Cumulative	United States	Energy	Oil & Gas Exploration & Production
Barclays plc	United Kingdom	Financials	Diversified Banks
Sanofi-Aventis	France	Health Care	Pharmaceuticals
Twenty-First Century Fox, Inc., Class A	United States	Consumer Discretionary	Movies & Entertainment

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

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

24 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Canada
Consumer Discretionary – 1.6%
Hudson’s Bay Co.		324	$	3,303
Materials – 1.0%
Canfor Corp. (A)		105		1,965
Total Canada – 2.6%				5,268
China
Information Technology – 2.2%
Baidu.com, Inc. ADR (A)		17		4,334
Total China – 2.2%				4,334
France
Health Care – 2.7%
Sanofi-Aventis		55		5,484
Industrials – 3.2%
Compagnie de Saint-Gobain		68		4,041
Vinci		26		2,476
				6,517
Total France – 5.9%				12,001
Germany
Financials – 1.4%
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares		13		2,743
Total Germany – 1.4%				2,743
Hong Kong
Financials – 0.1%
First Pacific Co. Ltd.		257		205
Real Estate – 1.9%
Cheung Kong (Holdings) Ltd.		302		3,860
Total Hong Kong – 2.0%				4,065
Israel
Health Care – 1.0%
Teva Pharmaceutical Industries Ltd. ADR		110		1,928
Total Israel – 1.0%				1,928
Japan
Information Technology – 2.5%
Hitachi Ltd.		721		5,081
Telecommunication Services – 2.5%
SoftBank Group Corp.		60		4,876
Total Japan – 5.0%				9,957

COMMON STOCKS (Continued)	Shares		Value
Luxembourg
Energy – 1.7%
Tenaris S.A.		234	$	3,324
Total Luxembourg – 1.7%				3,324
South Korea
Information Technology – 2.6%
Samsung Electronics Co. Ltd.		2		5,216
Materials – 1.9%
POSCO		14		3,805
Total South Korea – 4.5%				9,021
Switzerland
Health Care – 1.7%
Novartis AG, Registered Shares		41		3,481
Total Switzerland – 1.7%				3,481
United Kingdom
Consumer Discretionary – 3.8%
Fiat S.p.A. (A)		426		7,630
Financials – 4.6%
Barclays plc		2,230		5,778
Standard Chartered plc		347		3,445
				9,223
Industrials – 1.9%
Weir Group plc (The)		142		3,743
Total United Kingdom – 10.3%				20,596
United States
Consumer Discretionary – 10.1%
BorgWarner, Inc.		101		5,197
Discovery Communications, Inc. (A)		100		2,025
Liberty Global, Inc., Series A (A)		223		7,546
Twenty-First Century Fox, Inc., Class A		206		5,433
				20,201
Consumer Staples – 1.8%
CVS Caremark Corp.		43		3,527
Energy – 5.4%
Apache Corp.		79		3,626
Chesapeake Energy Corp. (A)		399		1,716
Halliburton Co.		24		1,102
Rowan Cos., Inc. (A)		124		1,599
RPC, Inc.		115		2,853
				10,896
Financials – 21.3%
American International Group, Inc.		121		7,425
Bank of America Corp.		379		9,597
Citigroup, Inc.		151		11,000
Goldman Sachs Group, Inc. (The)		19		4,544

COMMON STOCKS (Continued)	Shares		Value
Financials (Continued)
Wells Fargo & Co.		185	$	10,224
				42,790
Health Care – 7.4%
Allergan plc		9		1,745
Da Vita, Inc. (A)		78		4,631
HCA Holdings, Inc. (A)		57		4,539
McKesson Corp.		25		3,898
				14,813
Industrials – 5.5%
Bristow Group, Inc.		517		4,830
Union Pacific Corp.		34		3,929
Westinghouse Air Brake Technologies Corp.		28		2,135
				10,894
Information Technology – 2.7%
International Business Machines Corp.		37		5,399
Materials – 3.4%
Axalta Coating Systems Ltd. (A)		98		2,846
Compass Minerals International, Inc.		62		3,999
				6,845
Total United States – 57.6%				115,365
TOTAL COMMON STOCKS – 95.9%			$	192,083
(Cost: $154,217)
PREFERRED STOCKS
United States
Energy – 3.8%
Chesapeake Energy Corp., 5.750%, Cumulative		2		1,538
Chesapeake Energy Corp., 5.750%, Series A Cumulative		11		6,126
				7,664
Total United States – 3.8%				7,664
TOTAL PREFERRED STOCKS – 3.8%			$	7,664
(Cost: $9,876)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 0.1%
Federal Home Loan Bank 0.700%, 10-2-17	$	241		241
TOTAL SHORT-TERM SECURITIES – 0.1%			$	241
(Cost: $241)
TOTAL INVESTMENT SECURITIES – 99.8%			$	199,988
(Cost: $164,334)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2%				469
NET ASSETS – 100.0%			$	200,457

2017 SEMIANNUAL REPORT 25

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

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2017.

The following forward foreign currency contracts were outstanding at September 30, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
Japanese Yen		979,900	U.S. Dollar		8,968	11–8–17	Morgan Stanley International	$	245	$	—

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	192,083	$	—	$	—
Preferred Stocks		1,538		6,126		—
Short-Term Securities		—		241		—
Total	$	193,621	$	6,367	$	—
Forward Foreign Currency Contracts	$	—	$	245	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Financials	27.4%
Consumer Discretionary	15.5%
Health Care	12.8%
Energy	10.9%
Industrials	10.6%
Information Technology	10.0%
Materials	6.3%
Telecommunication Services	2.5%
Real Estate	1.9%
Consumer Staples	1.8%
Other+	0.3%

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

See Accompanying Notes to Financial Statements.

26 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY DIVIDEND OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	97.0%
Industrials	16.5%
Financials	16.1%
Information Technology	13.8%
Energy	10.9%
Health Care	8.7%
Materials	7.8%
Consumer Staples	7.6%
Consumer Discretionary	6.7%
Real Estate	5.3%
Utilities	3.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.0%

Lipper Rankings

Category: Equity Income Funds	Rank	Percentile
1 Year	296/546		55
3 Year	379/476		80
5 Year	278/369		76
10 Year	207/242		86

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

Top 10 Equity Holdings

Company	Sector	Industry
Pfizer, Inc.	Health Care	Pharmaceuticals
Chevron Corp.	Energy	Integrated Oil & Gas
Microsoft Corp.	Information Technology	Systems Software
Wells Fargo & Co.	Financials	Diversified Banks
Lockheed Martin Corp.	Industrials	Aerospace & Defense
Exelon Corp.	Utilities	Electric Utilities
JPMorgan Chase & Co.	Financials	Other Diversified Financial Services
Suncor Energy, Inc.	Energy	Integrated Oil & Gas
Dow Chemical Co. (The)	Materials	Diversified Chemicals
MetLife, Inc.	Financials	Life & Health Insurance

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

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

2017 SEMIANNUAL REPORT 27

SCHEDULE OF INVESTMENTS IVY DIVIDEND OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Advertising – 1.3%
Omnicom Group, Inc.		62	$	4,589
Cable & Satellite – 1.3%
Comcast Corp., Class A		120		4,619
Home Improvement Retail – 3.1%
Home Depot, Inc. (The)		70		11,457
Restaurants – 1.0%
McDonalds Corp.		24		3,737
Total Consumer Discretionary – 6.7%				24,402
Consumer Staples
Brewers – 1.4%
Anheuser-Busch InBev S.A. ADR		44		5,302
Drug Retail – 1.6%
CVS Caremark Corp.		70		5,700
Personal Products – 1.7%
Unilever plc (A)		106		6,158
Tobacco – 2.9%
Philip Morris International, Inc.		96		10,657
Total Consumer Staples – 7.6%				27,817
Energy
Integrated Oil & Gas – 8.6%
Chevron Corp.		159		18,671
Suncor Energy, Inc.		366		12,836
				31,507
Oil & Gas Storage & Transportation – 2.3%
Enterprise Products Partners L.P.		318		8,290
Total Energy – 10.9%				39,797
Financials
Diversified Banks – 4.7%
Wells Fargo & Co.		309		17,052
Life & Health Insurance – 3.8%
MetLife, Inc.		260		13,668
Multi-Line Insurance – 1.5%
American International Group, Inc.		89		5,451
Other Diversified Financial Services – 3.5%
JPMorgan Chase & Co.		135		12,904

COMMON STOCKS (Continued)	Shares		Value
Regional Banks – 2.6%
KeyCorp.		513	$	9,650
Total Financials – 16.1%				58,725
Health Care
Health Care Equipment – 1.4%
Medtronic plc		64		5,006
Pharmaceuticals – 7.3%
Eli Lilly and Co.		91		7,767
Pfizer, Inc.		533		19,027
				26,794
Total Health Care – 8.7%				31,800
Industrials
Aerospace & Defense – 7.9%
BAE Systems plc (A)		280		2,367
Lockheed Martin Corp.		49		15,158
United Technologies Corp.		97		11,225
				28,750
Building Products – 3.0%
Johnson Controls, Inc.		272		10,963
Construction Machinery & Heavy Trucks – 2.1%
PACCAR, Inc.		107		7,704
Electrical Components & Equipment – 2.4%
Eaton Corp.		112		8,612
Railroads – 1.1%
Union Pacific Corp.		35		4,024
Total Industrials – 16.5%				60,053
Information Technology
Communications Equipment – 2.9%
Harris Corp.		56		7,309
Nokia Corp., Series A ADR		549		3,280
				10,589
Data Processing & Outsourced Services – 1.6%
Paychex, Inc.		95		5,675
Semiconductors – 4.4%
Analog Devices, Inc.		134		11,586
Cypress Semiconductor Corp.		293		4,396
				15,982
Systems Software – 4.9%
Microsoft Corp.		242		18,045
Total Information Technology – 13.8%				50,291

COMMON STOCKS (Continued)	Shares		Value
Materials
Diversified Chemicals – 3.5%
Dow Chemical Co. (The)		182	$	12,579
Industrial Gases – 1.0%
Air Products and Chemicals, Inc.		24		3,696
Paper Packaging – 3.3%
International Paper Co.		212		12,046
Total Materials – 7.8%				28,321
Real Estate
Industrial REITs – 2.5%
ProLogis, Inc.		142		8,980
Specialized REITs – 2.8%
Crown Castle International Corp.		50		5,009
Life Storage, Inc.		46		3,792
Uniti Group, Inc.		96		1,401
				10,202
Total Real Estate – 5.3%				19,182
Utilities
Electric Utilities – 3.6%
Exelon Corp.		348		13,105
Total Utilities – 3.6%				13,105
TOTAL COMMON STOCKS – 97.0%			$	353,493
(Cost: $268,689)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 2.4%
Kroger Co. (The), 1.300%, 10-2-17	$	8,643		8,642
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), 1.450%, 10-4-17 (C)		392		392
Municipal Obligations – 0.4%
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.) (BVAL plus 7 bps), 0.890%, 10-7-17 (C)		1,500		1,500
TOTAL SHORT-TERM SECURITIES – 2.9%			$	10,534
(Cost: $10,535)
TOTAL INVESTMENT SECURITIES – 99.9%			$	364,027
(Cost: $279,224)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1%				208
NET ASSETS – 100.0%			$	364,235

28 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY DIVIDEND OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2017.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	353,493	$	—	$	—
Short-Term Securities		—		10,534		—
Total	$	353,493	$	10,534	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

BVAL = Bloomberg Valuation Municipal AAA Benchmark

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 29

PORTFOLIO HIGHLIGHTS IVY EMERGING MARKETS EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	98.0%
Information Technology	31.3%
Financials	20.2%
Consumer Discretionary	14.4%
Materials	8.9%
Energy	7.3%
Consumer Staples	4.6%
Real Estate	4.0%
Health Care	3.2%
Telecommunication Services	2.1%
Industrials	2.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.0%

Lipper Rankings

Category: Emerging Markets Funds	Rank	Percentile
1 Year	56/811		7
3 Year	14/653		3
5 Year	20/457		5
10 Year	54/187		29

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

Country Weightings

Pacific Basin	68.8%
China	27.1%
South Korea	13.6%
India	11.5%
Taiwan	6.3%
Other Pacific Basin	10.3%
South America	16.9%
Brazil	13.5%
Other South America	3.4%
Europe	7.6%
Russia	5.6%
Other Europe	2.0%
North America	2.6%
Other	2.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.0%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Samsung Electronics Co. Ltd.	South Korea	Information Technology	Technology Hardware, Storage & Peripherals
Tencent Holdings Ltd.	China	Information Technology	Internet Software & Services
Alibaba Group Holding Ltd. ADR	China	Information Technology	Internet Software & Services
Taiwan Semiconductor Manufacturing Co. Ltd.	Taiwan	Information Technology	Semiconductors
Sberbank of Russia ADR	Russia	Financials	Diversified Banks
Sunny Optical Technology (Group) Co. Ltd.	China	Information Technology	Electronic Components
Petroleo Brasileiro S.A.	Brazil	Energy	Integrated Oil & Gas
Sociedad Quimica y Minera de Chile S.A. ADR	Chile	Materials	Fertilizers & Agricultural Chemicals
Yandex N.V., Class A	Netherlands	Information Technology	Internet Software & Services
PJSC LUKOIL ADR	Russia	Energy	Integrated Oil & Gas

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

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

30 SEMIANNUAL REPORT 2017

CONSOLIDATEDSCHEDULE OF INVESTMENTS IVY EMERGING MARKETS EQUITY FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Argentina
Energy – 1.2%
YPF Sociedad Anonima ADR		1,010	$	22,498
Total Argentina – 1.2%				22,498
Brazil
Consumer Discretionary – 1.5%
Kroton Educacional S.A.		4,359		27,485
Consumer Staples – 1.3%
Raia Drogasil S.A.		1,065		25,207
Energy – 2.2%
Petroleo Brasileiro S.A. (A)		8,412		40,743
Financials – 4.6%
Banco Bradesco S.A.		2,525		28,051
Banco do Brasil S.A.		2,636		29,091
Itau Unibanco Holdings S.A.		2,121		29,137
				86,279
Health Care – 0.5%
Hypermarcas S.A.		1,045		10,586
Information Technology – 1.0%
MercadoLibre, Inc.		71		18,472
Materials – 1.3%
Vale S.A.		2,332		23,607
Real Estate – 1.1%
BRMalls Participacoes S.A.		4,457		19,925
Total Brazil – 13.5%				252,304
Chile
Materials – 2.2%
Sociedad Quimica y Minera de Chile S.A. ADR		732		40,741
Total Chile – 2.2%				40,741
China
Consumer Discretionary – 5.0%
Brilliance China Automotive Holdings Ltd.		11,912		31,718
Geely Automobile Holdings Ltd.		6,545		18,433
JD.com, Inc. ADR (A)		240		9,176
SAIC Motor Corp. Ltd., Class A		3,351		15,225
Sands China Ltd.		3,430		17,852
				92,404
Consumer Staples – 1.1%
Kweichow Moutai Co. Ltd., A Shares		275		21,399
Financials – 5.4%
BOC Hong Kong (Holdings) Ltd., H Shares		40,152		19,789
Industrial and Commercial Bank of China Ltd., H Shares		33,601		24,948

COMMON STOCKS (Continued)	Shares		Value
Financials (Continued)
Ping An Insurance (Group) Co. of China Ltd., H Shares		4,711	$	36,154
ZhongAn Online P&C Insurance Co. Ltd. (A)		2,410		19,578
				100,469
Information Technology – 13.0%
Alibaba Group Holding Ltd. ADR (A)		485		83,695
NetEase.com, Inc. ADR		82		21,535
Sunny Optical Technology (Group) Co. Ltd.		3,205		50,962
Tencent Holdings Ltd.		1,984		85,379
				241,571
Materials – 1.1%
Aluminum Corp. of China Ltd., H Shares (A)		22,616		20,295
Real Estate – 1.5%
China Overseas Land & Investment Ltd.		5,670		18,437
Logan Property Holdings Co. Ltd.		9,534		9,837
				28,274
Total China – 27.1%				504,412
Hong Kong
Consumer Staples – 1.0%
China Resources Beer (Holdings) Co. Ltd.		6,738		18,242
Information Technology – 1.0%
AAC Technologies Holdings, Inc.		1,036		17,403
Real Estate – 0.7%
China Resources Land Ltd.		4,253		13,011
Total Hong Kong – 2.7%				48,656
India
Consumer Discretionary – 2.9%
Maruti Suzuki India Ltd.		301		36,719
Page Industries Ltd.		39		10,914
Zee Entertainment Enterprises Ltd.		857		6,824
				54,457
Consumer Staples – 1.2%
ITC Ltd.		1,034		4,090
United Spirits Ltd. (A)		496		18,215
				22,305
Energy – 1.9%
Reliance Industries Ltd.		2,934		35,072
Financials – 4.2%
HDFC Bank Ltd.		617		17,064
ICICI Bank Ltd.		3,508		14,856
Kotak Mahindra Bank Ltd.		1,130		17,341
RBL Bank Ltd.		1,519		11,786

COMMON STOCKS (Continued)	Shares		Value
Financials (Continued)
YES BANK Ltd.		3,409	$	18,268
				79,315
Industrials – 1.3%
Havells India Ltd.		1,174		8,686
Larsen & Toubro Ltd.		833		14,564
				23,250
Total India – 11.5%				214,399
Indonesia
Financials – 1.1%
PT Bank Mandiri (Persero) Tbk		41,735		20,838
Telecommunication Services – 1.0%
PT Telekomunikasi Indonesia Persero Tbk		54,518		18,943
Total Indonesia – 2.1%				39,781
Macau
Consumer Discretionary – 1.7%
Galaxy Entertainment Group		4,429		31,185
Total Macau – 1.7%				31,185
Malaysia
Industrials – 0.7%
Sime Darby Berhad		6,430		13,735
Total Malaysia – 0.7%				13,735
Mexico
Materials – 2.6%
CEMEX S.A.B. de C.V. (A)		31,867		28,945
Mexichem S.A.B. de C.V.		7,792		20,543
				49,488
Total Mexico – 2.6%				49,488
Netherlands
Information Technology – 2.0%
Yandex N.V., Class A (A)		1,123		37,018
Total Netherlands – 2.0%				37,018
Russia
Energy – 2.0%
PJSC LUKOIL ADR		707		37,455
Financials – 2.9%
Sberbank of Russia ADR		3,809		54,224
Real Estate – 0.7%
Etalon Group Ltd. GDR		3,351		13,855
Total Russia – 5.6%				105,534

2017 SEMIANNUAL REPORT 31

CONSOLIDATEDSCHEDULE OF INVESTMENTS IVY EMERGING MARKETS EQUITY FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
South Africa
Consumer Discretionary – 1.0%
Naspers Ltd., Class N		84	$	18,199
Telecommunication Services – 1.1%
MTN Group Ltd.		2,158		19,822
Total South Africa – 2.1%				38,021
South Korea
Consumer Discretionary – 1.2%
Hyundai Motor Co.		171		22,438
Health Care – 2.7%
Hugel, Inc. (A)		41		18,927
Samsung BioLogics Co. Ltd. (A)		91		26,808
Vieworks Co. Ltd.		159		5,441
				51,176
Information Technology – 8.0%
Samsung Electronics Co. Ltd.		52		116,498
SK hynix, Inc.		447		32,382
				148,880
Materials – 1.7%
POSCO		116		32,117
Total South Korea – 13.6%				254,611

COMMON STOCKS (Continued)	Shares		Value
Taiwan
Information Technology – 6.3%
Hon Hai Precision Industry Co. Ltd.		7,715	$	26,715
Largan Precision Co. Ltd.		180		31,670
Taiwan Semiconductor Manufacturing Co. Ltd.		8,252		58,918
				117,303
Total Taiwan – 6.3%				117,303
Turkey
Consumer Discretionary – 1.1%
Arcelik Anonim Sirketi		3,299		21,034
Financials – 2.0%
Akbank T.A.S.		6,846		18,061
Turkiye Garanti Bankasi A.S.		6,686		18,165
				36,226
Total Turkey – 3.1%				57,260
TOTAL COMMON STOCKS – 98.0%			$	1,826,946
(Cost: $1,422,290)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 2.1%
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.)
1.180%, 10–5–17	$	9,000		8,998

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (B) (Continued)
Mondelez International, Inc.
1.510%, 10–10–17	$	6,000	$	5,997
Northern Illinois Gas Co.
1.250%, 10–2–17		6,804		6,803
Sysco Corp.
1.350%, 10–2–17		2,447		2,447
Walgreens Boots Alliance, Inc.
1.490%, 10–12–17		10,000		9,995
Wisconsin Gas LLC
1.180%, 10–5–17		5,000		4,999
				39,239
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) 1.450%, 10–4–17( C)		1,690		1,690
TOTAL SHORT-TERM SECURITIES – 2.2%			$	40,929
(Cost: $40,933)
TOTAL INVESTMENT SECURITIES – 100.2%			$	1,867,875
(Cost: $1,463,223)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)%				(4,205	)
NET ASSETS – 100.0%			$	1,863,670

Notes to Consolidated Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2017.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	1,826,946	$	—	$	—
Short-Term Securities		—		40,929		—
Total	$	1,826,946	$	40,929	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GDR = Global Depositary Receipts

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

32 SEMIANNUAL REPORT 2017

CONSOLIDATEDSCHEDULE OF INVESTMENTS IVY EMERGING MARKETS EQUITY FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Market Sector Diversification
(as a % of net assets)
Information Technology	31.3%
Financials	20.2%
Consumer Discretionary	14.4%
Materials	8.9%
Energy	7.3%
Consumer Staples	4.6%
Real Estate	4.0%
Health Care	3.2%
Telecommunication Services	2.1%
Industrials	2.0%
Other+	2.0%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 33

PORTFOLIO HIGHLIGHTS IVY EUROPEAN OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	98.0%
Financials	18.2%
Industrials	16.6%
Consumer Staples	10.9%
Consumer Discretionary	10.8%
Information Technology	10.5%
Energy	10.0%
Health Care	6.9%
Materials	6.7%
Utilities	5.9%
Telecommunication Services	1.5%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.0%

Lipper Rankings

Category: European Region Funds	Rank	Percentile
1 Year	71/157		45
3 Year	56/124		45
5 Year	63/98		64
10 Year	53/70		75

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

Country Weightings

Europe	97.1%
France	31.1%
United Kingdom	29.8%
Germany	9.5%
Netherlands	6.8%
Italy	4.1%
Norway	4.1%
Other Europe	11.7%
Pacific Basin	0.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.0%

Top 10 Equity Holdings

Company	Country	Sector	Industry
ING Groep N.V., Certicaaten Van Aandelen	Netherlands	Financials	Diversified Banks
Royal Dutch Shell plc, Class A	United Kingdom	Energy	Integrated Oil & Gas
Thales	France	Industrials	Aerospace & Defense
Total S.A.	France	Energy	Integrated Oil & Gas
ENEL S.p.A.	Italy	Utilities	Electric Utilities
HSBC Holdings plc	United Kingdom	Financials	Diversified Banks
Unilever N.V., Certicaaten Van Aandelen	Netherlands	Consumer Staples	Personal Products
Weir Group plc (The)	United Kingdom	Industrials	Industrial Machinery
Prudential plc	United Kingdom	Financials	Life & Health Insurance
Infineon Technologies AG	Germany	Information Technology	Semiconductors

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

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

34 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY EUROPEAN OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Denmark
Industrials – 1.5%
Vestas Wind Systems A/S		46	$	4,092
Total Denmark – 1.5%				4,092
France
Consumer Discretionary – 7.3%
Compagnie Generale des Etablissements Michelin, Class B		38		5,501
LVMH Moet Hennessy - Louis Vuitton		19		5,304
Renault S.A.		43		4,235
Valeo S.A.		57		4,202
				19,242
Energy – 2.6%
Total S.A.		126		6,788
Financials – 5.5%
Axa S.A.		133		4,019
BNP Paribas S.A.		65		5,241
Societe Generale S.A.		91		5,304
				14,564
Health Care – 1.0%
Innate Pharma S.A. (A)		210		2,548
Industrials – 9.6%
Compagnie de Saint-Gobain		71		4,235
Eiffage S.A.		33		3,437
Schneider Electric S.A.		56		4,891
Thales		69		7,806
Vinci		53		5,073
				25,442
Information Technology – 3.6%
Cap Gemini S.A.		35		4,102
Ubisoft Entertainment S.A. (A)		79		5,410
				9,512
Telecommunication Services – 1.5%
Orange S.A.		232		3,803
Total France – 31.1%				81,899
Germany
Consumer Discretionary – 1.6%
Bayerische Motoren Werke AG		42		4,220
Health Care – 1.3%
Fresenius SE & Co. KGaA		44		3,549
Industrials – 1.6%
KION Holding 1 GmbH		45		4,278
Information Technology – 3.5%
Infineon Technologies AG		226		5,687
SAP AG		34		3,714
				9,401

COMMON STOCKS (Continued)	Shares		Value
Materials – 1.5%
HeidelbergCement AG		39	$	3,978
Total Germany – 9.5%				25,426
Ireland
Consumer Staples – 1.1%
Glanbia plc		160		3,008
Materials – 1.5%
CRH plc		102		3,894
Total Ireland – 2.6%				6,902
Italy
Materials – 1.5%
Buzzi Unicem S.p.A.		153		4,122
Utilities – 2.6%
ENEL S.p.A.		1,113		6,701
Total Italy – 4.1%				10,823
Malaysia
Consumer Staples – 0.9%
PureCircle Ltd. (A)		340		2,248
Total Malaysia – 0.9%				2,248
Netherlands
Consumer Staples – 3.4%
Heineken N.V.		25		2,489
Unilever N.V., Certicaaten Van Aandelen		110		6,476
				8,965
Financials – 3.4%
ING Groep N.V., Certicaaten Van Aandelen		493		9,096
Total Netherlands – 6.8%				18,061
Norway
Consumer Staples – 2.1%
Marine Harvest ASA		281		5,549
Energy – 0.5%
DNO International ASA (A)		913		1,252
Financials – 1.5%
DNB ASA		203		4,081
Total Norway – 4.1%				10,882
Russia
Energy – 1.6%
PJSC LUKOIL ADR		79		4,177
Total Russia – 1.6%				4,177

COMMON STOCKS (Continued)	Shares		Value
Spain
Utilities – 1.4%
Iberdrola S.A.		485	$	3,767
Total Spain – 1.4%				3,767
Sweden
Financials – 1.2%
Skandinaviska Enskilda Banken AB, Series A		251		3,306
Total Sweden – 1.2%				3,306
Switzerland
Financials – 1.9%
UBS Group AG		291		4,965
Information Technology – 1.5%
STMicroelectronics N.V.		203		3,931
Total Switzerland – 3.4%				8,896
United Kingdom
Consumer Discretionary – 1.9%
GKN plc		1,130		5,240
Consumer Staples – 3.4%
British American Tobacco plc		84		5,265
Diageo plc		116		3,804
				9,069
Energy – 5.3%
Royal Dutch Shell plc, Class A		285		8,580
Tullow Oil plc (A)		2,279		5,684
				14,264
Financials – 4.7%
HSBC Holdings plc		666		6,578
Prudential plc		240		5,751
				12,329
Health Care – 4.6%
AstraZeneca plc		66		4,400
GlaxoSmithKline plc		197		3,921
Shire plc		78		3,963
				12,284
Industrials – 3.9%
Ashtead Group plc		187		4,505
Weir Group plc (The)		219		5,753
				10,258
Information Technology – 1.9%
Imagination Technologies Group plc (A)		595		1,338
JUST EAT plc (A)		417		3,736
				5,074
Materials – 2.2%
Mondi plc		95		2,552
Rio Tinto plc		70		3,253
				5,805

2017 SEMIANNUAL REPORT 35

SCHEDULE OF INVESTMENTS IVY EUROPEAN OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Utilities – 1.9%
National Grid plc		408	$	5,059
Total United Kingdom – 29.8%				79,382
TOTAL COMMON STOCKS – 98.0%			$	259,861
(Cost: $214,628)
SHORT–TERM SECURITIES	Principal
Commercial Paper (B) – 1.4%
Sysco Corp.
1.350%, 10–2–17	$	3,735		3,735

SHORT–TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.4%
Toyota Motor Credit Corp. (1–Month U.S. LIBOR plus 15 bps)
1.450%, 10-4-17 (C)	$	1,126	$	1,126
TOTAL SHORT–TERM SECURITIES – 1.8%			$	4,861
(Cost: $4,861)
TOTAL INVESTMENT SECURITIES – 99.8%			$	264,722
(Cost: $219,489)
CASH AND OTHER ASSETS, NET OF LIABILITIES(D) – 0.2%				570
NET ASSETS – 100.0%			$	265,292

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2017.

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

(D) Cash of $975 is held in collateralized accounts for OTC foreign forward currency contracts collateral.

The following forward foreign currency contracts were outstanding at September 30, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		9,649	U.S. Dollar		12,465	10-5-17	Citibank N.A.	$	—	$	465

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	259,861	$	—	$	—
Short-Term Securities		—		4,861		—
Total	$	259,861	$	4,861	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	465	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipt

LIBOR = London Interbank Offered Rate

OTC = Over the Counter

36 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY EUROPEAN OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Market Sector Diversification
(as a % of net assets)
Financials	18.2%
Industrials	16.6%
Consumer Staples	10.9%
Consumer Discretionary	10.8%
Information Technology	10.5%
Energy	10.0%
Health Care	6.9%
Materials	6.7%
Utilities	5.9%
Telecommunication Services	1.5%
Other+	2.0%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 37

PORTFOLIO HIGHLIGHTS IVY GLOBAL BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	5.4%
Utilities	2.2%
Energy	1.5%
Information Technology	0.9%
Financials	0.8%
Bonds	87.1%
Corporate Debt Securities	49.6%
United States Government and Government Agency Obligations	23.7%
Other Government Securities	13.4%
Loans	0.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	7.5%

Quality Weightings

Investment Grade	49.9%
AA	24.9%
A	6.1%
BBB	18.9%
Non-Investment Grade	37.2%
BB	21.0%
B	11.3%
CCC	1.8%
Non-rated	3.1%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities	12.9%

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. For securities not rated by Moody’s, ratings are obtained from Fitch. 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: Global Income Funds	Rank	Percentile
1 Year	29/210		14
3 Year	87/192		46
5 Year	55/175		32

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

Country Weightings

North America	46.2%
United States	37.1%
Mexico	4.8%
Other North America	4.3%
Europe	19.1%
United Kingdom	6.1%
Luxembourg	3.9%
Other Europe	9.1%
South America	18.4%
Brazil	5.3%
Argentina	4.6%
Chile	3.9%
Columbia	3.5%
Other South America	1.1%
Pacific Basin	4.5%
Other	1.0%
Bahamas/Caribbean	0.9%
Middle East	2.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	7.5%

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

38 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Brazil
Utilities – 1.3%
Alupar Investimento S.A.		212	$	1,254
Transmissora Alianca de Energia Eletrica S.A.		181		1,268
				2,522
Total Brazil – 1.3%				2,522
Chile
Utilities – 0.4%
Aguas Andinas S.A.		1,051		668
Total Chile – 0.4%				668
Panama
Financials – 0.8%
Banco Latinoamericano de Comercio Exterior S.A.		52		1,527
Total Panama – 0.8%				1,527
United Kingdom
Energy – 1.5%
Royal Dutch Shell plc, Class A		87		2,613
Seadrill Partners LLC		31		117
				2,730
Total United Kingdom – 1.5%				2,730
United States
Information Technology – 0.9%
Intel Corp.		46		1,756
Utilities – 0.5%
PPL Corp.		24		928
Total United States – 1.4%				2,684
TOTAL COMMON STOCKS – 5.4%			$	10,131
(Cost: $10,322)
CORPORATE DEBT SECURITIES	Principal
Argentina
Energy – 1.7%
Pan American Energy LLC:
7.875%, 5–7–21 (A)	$	1,000		1,079
7.875%, 5–7–21		500		540
YPF Sociedad Anonima:
8.875%, 12–19–18 (A)		1,300		1,388
8.500%, 3–23–21 (A)		250		281
				3,288
Total Argentina – 1.7%				3,288

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Austria
Consumer Staples – 0.3%
ESAL GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.)
6.250%, 2–5–23 (A)	$	500	$	485
Total Austria – 0.3%				485
Brazil
Consumer Staples – 0.3%
Cosan Ltd.
5.950%, 9–20–24 (A)		450		461
Energy – 0.0%
Lancer Finance Co. (SPV) Ltd.
5.850%, 12–12–16 (A)(B)		252		–	*
Financials – 0.0%
Banco Cruzeiro do Sul S.A.
8.500%, 2–20–15 (A)(B)		1,500		75
Materials – 1.9%
Suzano Trading Ltd.
5.875%, 1–23–21 (A)		2,500		2,697
Vale Overseas Ltd.:
4.625%, 9–15–20		500		529
6.250%, 8–10–26		425		484
				3,710
Total Brazil – 2.2%				4,246
British Virgin Islands
Energy – 0.3%
QGOG Atlantic/Alaskan Rigs Ltd.:
5.250%, 7–30–18 (A)		532		521
5.250%, 7–30–18		58		57
				578
Total British Virgin Islands – 0.3%				578
Canada
Financials – 3.2%
Bank of Montreal
1.800%, 7–31–18		1,100		1,102
Canadian Imperial Bank of Commerce
2.100%, 10–5–20		5,000		4,998
				6,100
Total Canada – 3.2%				6,100
Cayman Islands
Industrials – 0.2%
Guanay Finance Ltd.
6.000%, 12–15–20		295		302
Telecommunication Services – 0.7%
Sable International Finance Ltd.
6.875%, 8–1–22 (A)		1,200		1,290
Total Cayman Islands – 0.9%				1,592

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Chile
Industrials – 1.4%
Guanay Finance Ltd.
6.000%, 12–15–20 (A)	$	1,028	$	1,054
LATAM Airlines Group S.A.
7.250%, 6–9–20 (A)		1,500		1,606
				2,660
Materials – 2.1%
Inversiones CMPC S.A. (GTD by Empresas CMPC S.A.):
4.750%, 1–19–18 (A)		2,925		2,932
4.375%, 5–15–23 (A)		1,000		1,034
				3,966
Total Chile – 3.5%				6,626
China
Information Technology – 0.5%
Alibaba Group Holding Ltd.
2.500%, 11–28–19		1,000		1,008
Total China – 0.5%				1,008
Columbia
Financials – 0.3%
Banco de Bogota S.A.
5.375%, 2–19–23 (A)		500		530
Utilities – 2.1%
Emgesa S.A. E.S.P.
8.750%, 1–25–21 (C)		COP  4,880,000		1,734
Empresas Publicas de Medellin E.S.P.
8.375%, 2–1–21 (C)		6,300,000		2,219
				3,953
Total Columbia – 2.4%				4,483
France
Consumer Staples – 0.4%
Pernod Ricard S.A.
4.250%, 7–15–22 (A)	$	750		805
Financials – 0.4%
BNP Paribas S.A.
7.625%, 12–29–49 (A)		700		769
Total France – 0.8%				1,574
Hong Kong
Telecommunication Services – 0.5%
Hutchison Whampoa Ltd.
1.625%, 10–31–17 (A)		1,000		1,000
Total Hong Kong – 0.5%				1,000

2017 SEMIANNUAL REPORT 39

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
India
Industrials – 0.7%
Adani Ports and Special Economic Zone Ltd.
3.500%, 7–29–20 (A)	$	1,300	$	1,323
Materials – 0.4%
Vedanta Resources plc
6.375%, 7–30–22 (A)		800		832
Total India – 1.1%				2,155
Ireland
Financials – 0.4%
MTS International Funding Ltd.
5.000%, 5–30–23 (A)		750		779
Telecommunication Services – 0.4%
Mobile TeleSystems OJSC
5.000%, 5–30–23		700		726
Total Ireland – 0.8%				1,505
Luxembourg
Consumer Discretionary – 0.7%
Altice S.A.
7.625%, 2–15–25 (A)		1,150		1,240
Financials – 1.6%
OJSC Russian Agricultural Bank
5.100%, 7–25–18 (A)		2,950		2,999
Industrials – 0.4%
JSL Europe (GTD by JSL S.A.)
7.750%, 7–26–24 (A)		750		790
Total Luxembourg – 2.7%				5,029
Mexico
Consumer Staples – 0.4%
Grupo Bimbo S.A.B. de C.V.
4.875%, 6–30–20 (A)		750		802
Financials – 0.8%
Banco Santander S.A.
4.125%, 11–9–22 (A)		850		891
Unifin Financiera S.A.B. de C.V. SOFOM E.N.R.
7.250%, 9–27–23 (A)		500		520
				1,411
Materials – 2.6%
C5 Capital (SPV) Ltd. (3–Month U.S. LIBOR plus 428 bps)
5.573%, 12–29–49 (A)(D)		1,600		1,512
CEMEX S.A.B. de C.V.:
6.500%, 12–10–19 (A)		2,100		2,184
7.250%, 1–15–21 (A)		1,200		1,261
				4,957
Total Mexico – 3.8%				7,170

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Netherlands
Consumer Discretionary – 1.4%
Myriad International Holdings B.V.
6.000%, 7–18–20 (A)	$	900	$	971
VTR Finance B.V.
6.875%, 1–15–24 (A)		1,680		1,777
				2,748
Consumer Staples – 0.6%
Marfrig Holdings (Europe) B.V.:
6.875%, 6–24–19 (A)		500		515
8.000%, 6–8–23 (A)		550		569
				1,084
Energy – 0.9%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.):
4.875%, 3–17–20		1,375		1,428
8.375%, 5–23–21		300		347
				1,775
Materials – 0.1%
Cimpor Financial Operations B.V. (GTD by InterCement Participacoes S.A. and InterCement Brasil S.A.)
5.750%, 7–17–24 (A)		250		235
Utilities – 0.3%
Majapahit Holding B.V.
7.750%, 1–20–20 (A)		500		558
Total Netherlands – 3.3%				6,400
Norway
Energy – 0.3%
Aker BP ASA
6.000%, 7–1–22 (A)		500		520
Total Norway – 0.3%				520
Peru
Materials – 0.4%
San Miguel Industrias PET S.A.
4.500%, 9–18–22 (A)		750		758
Real Estate – 0.7%
InRetail Shopping Malls
5.250%, 10–10–21 (A)		1,300		1,342
Total Peru – 1.1%				2,100
Qatar
Energy – 0.1%
Ras Laffan Liquefied Natural Gas Co. Ltd. II
5.298%, 9–30–20 (A)		283		292
Total Qatar – 0.1%				292

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Russia
Materials – 0.6%
Uralkali Finance Ltd.
3.723%, 4–30–18 (A)	$	1,100	$	1,101
Total Russia – 0.6%				1,101
Singapore
Consumer Staples – 1.4%
Olam International Ltd.
7.500%, 8–12–20		2,500		2,733
Total Singapore – 1.4%				2,733
Spain
Financials – 0.9%
Banco Bilbao Vizcaya Argentaria S.A.
9.000%, 5–29–49		1,600		1,656
Total Spain – 0.9%				1,656
United Arab Emirates
Financials – 1.0%
ICICI Bank Ltd.:
4.800%, 5–22–19 (A)		500		518
3.500%, 3–18–20 (A)		1,400		1,426
				1,944
Total United Arab Emirates – 1.0%				1,944
United Kingdom
Consumer Staples – 0.3%
Imperial Tobacco Finance plc
3.750%, 7–21–22 (A)		550		572
Financials – 4.3%
Barclays plc
8.250%, 12–29–49		1,500		1,584
HSBC Holdings plc
5.625%, 12–29–49		1,200		1,232
Industrial and Commercial Bank of China Ltd.
2.250%, 12–21–18		550		550
State Bank of India:
3.250%, 4–18–18 (A)		3,750		3,774
3.622%, 4–17–19 (A)		1,000		1,018
				8,158
Total United Kingdom – 4.6%				8,730
United States
Consumer Staples – 0.9%
Anheuser–Busch InBev Worldwide, Inc. (GTD by AB INBEV/BBR/COB)
2.200%, 8–1–18		854		858
Bunge Ltd. Finance Corp.
3.500%, 11–24–20		800		823
				1,681

40 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Energy – 0.5%
Brand Energy & Infrastructure Services, Inc.
8.500%, 7–15–25 (A)	$	850	$	920
Financials – 1.6%
BBVA Bancomer S.A.
6.500%, 3–10–21 (A)		400		442
Citigroup, Inc.
8.400%, 4–29–49		1,250		1,303
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.
3.480%, 6–1–19 (A)		450		458
Wells Fargo & Co.
7.980%, 3–29–49		750		772
				2,975
Health Care – 0.4%
Fresenius U.S. Finance II, Inc.
4.500%, 1–15–23 (A)		675		716
Industrials – 1.1%
BAE Systems Holdings, Inc.
2.850%, 12–15–20 (A)		475		481
TransDigm, Inc. (GTD by TransDigm Group, Inc.)
6.000%, 7–15–22		1,607		1,667
				2,148
Information Technology – 2.4%
Alliance Data Systems Corp.
5.250%, 12–1–17 (A)		3,300		3,311
L–3 Communications Corp.
5.200%, 10–15–19		1,000		1,063
				4,374
Materials – 1.1%
BakerCorp International, Inc.
8.250%, 6–1–19		725		674
Hillman Group, Inc. (The)
6.375%, 7–15–22 (A)		1,218		1,212
				1,886
Real Estate – 1.0%
Aircastle Ltd.
4.625%, 12–15–18		1,900		1,950
Telecommunication Services – 2.6%
American Tower Corp.
3.400%, 2–15–19		1,400		1,425
T–Mobile USA, Inc.
6.000%, 3–1–23		2,977		3,137
Verizon Communications, Inc.
2.625%, 2–21–20		410		417
				4,979
Total United States – 11.6%				21,629
TOTAL CORPORATE DEBT SECURITIES – 49.6%			$	93,944
(Cost: $95,567)

OTHER GOVERNMENT SECURITIES (E)	Principal		Value
Argentina – 2.9%
Aeropuertos Argentina 2000 S.A.
6.875%, 2–1–27 (A)	$	225	$	240
Province of Buenos Aires
9.950%, 6–9–21		1,596		1,838
Republic of Argentina
5.625%, 1–26–22		250		262
6.875%, 4–22–21		3,000		3,267
				5,607
Brazil – 1.8%
Banco Nacional de Desenvolvimento Economico e Social
4.750%, 5–9–24 (A)		700		706
Federative Republic of Brazil
4.875%, 1–22–21		2,600		2,782
				3,488
Columbia – 1.1%
Republic of Colombia
4.375%, 7–12–21		1,850		1,974
Indonesia – 1.0%
Republic of Indonesia
3.750%, 4–25–22 (A)		1,850		1,920
Luxembourg – 1.2%
Atento Luxco 1 S.A.
6.125%, 8–10–22 (A)		1,125		1,175
Rumo Luxembourg S.a.r.l.
7.375%, 2–9–24 (A)		1,000		1,082
				2,257
Mexico – 1.0%
United Mexican States
3.625%, 3–15–22		1,850		1,939
Poland – 0.7%
Republic of Poland
5.125%, 4–21–21		1,250		1,370
Qatar – 0.9%
Qatar Government Bond
2.375%, 6–2–21(A)		1,800		1,773
Russia – 0.7%
Russian Federation
3.500%, 1–16–19 (A)		1,200		1,218
Saudi Arabia – 0.4%
Saudi Arabia Government Bond
2.375%, 10–26–21 (A)		750		740
South Africa – 1.0%
Republic of South Africa
5.500%, 3–9–20		1,850		1,968
Turkey – 0.7%
Turkey Government Bond
5.125%, 3–25–22		1,300		1,361

OTHER GOVERNMENT SECURITIES (E) (Continued)			Value
TOTAL OTHER GOVERNMENT SECURITIES – 13.4%			$	25,615
(Cost: $25,033)
LOANS (D)	Principal
United States
Materials – 0.4%
BakerCorp International, Inc. (ICE LIBOR plus 300 bps)
4.311%, 2–7–20	$	873		839
Total United States – 0.4%				839
TOTAL LOANS – 0.4%			$	839
(Cost: $866)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
United States – 0.0%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO
4.000%, 2–15–24 (F)		41		1
Federal National Mortgage Association Fixed Rate Pass-Through Certificates
5.000%, 3–1–22		29		30
				31
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0%			$	31
(Cost: $91)
UNITED STATES GOVERNMENT OBLIGATIONS
United States – 23.7%
U.S. Treasury Bonds
2.250%, 11–15–25		3,550		3,548
U.S. Treasury Notes:
1.000%, 9–15–18		4,000		3,986
1.000%, 10–15–19		4,000		3,960
3.500%, 5–15–20		1,980		2,078
2.625%, 11–15–20		4,500		4,631
2.125%, 8–15–21		3,500		3,544
1.125%, 9–30–21		4,000		3,894
1.250%, 10–31–21		1,700		1,661
1.750%, 11–30–21		1,600		1,594
1.875%, 1–31–22		3,000		3,000
1.750%, 5–15–22		7,475		7,433
1.875%, 9–30–22		4,000		3,989
1.500%, 8–15–26		1,700		1,591
				44,909
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 23.7%			$	44,909
(Cost: $44,785)

2017 SEMIANNUAL REPORT 41

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

SHORT–TERM SECURITIES	Principal		Value
Commercial Paper (G) – 7.4%
BorgWarner, Inc.
1.380%, 10–5–17	$	4,000	$	3,999
John Deere Canada ULC (GTD by Deere & Co.)
1.190%, 10–23–17		5,000		4,996
Medtronic Global Holdings SCA
1.580%, 10–10–17		5,000		4,998
				13,993

SHORT–TERM SECURITIES (Continued)	Principal		Value
Master Note – 3.5%
Toyota Motor Credit Corp. (1–Month U.S. LIBOR plus 15 bps)
1.450%, 10–4–17 (H)	$	6,578	$	6,578
TOTAL SHORT–TERM SECURITIES – 10.9%			$	20,571
(Cost: $20,572)
TOTAL INVESTMENT SECURITIES – 103.4%			$	196,040
(Cost: $197,236)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (3.4)%				(6,382	)
NET ASSETS – 100.0%			$	189,658

Notes to Schedule of Investments

* Not shown due to rounding.

(A) 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 September 30, 2017 the total value of these securities amounted to $65,480 or 34.5% of net assets.

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

(C) Principal amounts are denominated in the indicated foreign currency, where applicable (COP — Columbian Peso).

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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) Interest-only security. Amount shown as principal represents notional amount for computation of interest.

(G) Rate shown is the yield to maturity at September 30, 2017.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	10,131	$	—	$	—
Corporate Debt Securities		—		93,944		—
Other Government Securities		—		25,615		—
Loans		—		839		—
United States Government Agency Obligations		—		31		—
United States Government Obligations		—		44,909		—
Short-Term Securities		—		20,571		—
Total	$	10,131	$	185,909	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

42 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

ICE = Intercontinental Exchange

LIBOR = London Interbank Offered Rate

REMIC = Real Estate Mortgage Investment Conduit

Market Sector Diversification
(as a % of net assets)
United States Government and Government Agency Obligations	23.7%
Financials	15.3%
Other Government Securities	13.4%
Materials	9.6%
Energy	5.3%
Utilities	4.6%
Consumer Staples	4.6%
Telecommunication Services	4.2%
Information Technology	4.0%
Industrials	3.6%
Consumer Discretionary	2.1%
Real Estate	1.7%
Health Care	0.4%
Other+	7.5%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 43

PORTFOLIO HIGHLIGHTS IVY GLOBAL EQUITY INCOME FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	99.3%
Financials	16.7%
Health Care	15.1%
Consumer Staples	12.6%
Information Technology	11.0%
Energy	10.5%
Industrials	9.9%
Consumer Discretionary	9.0%
Utilities	6.3%
Materials	4.9%
Telecommunication Services	3.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.7%

Lipper Rankings

Category: Global Equity Income Funds	Rank	Percentile
1 Year	42/155		27
3 Year	60/136		44
5 Year	45/113		40

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

Country Weightings

Europe	48.2%
United Kingdom	19.7%
France	11.8%
Netherlands	5.1%
Other Europe	11.6%
North America	39.3%
United States	35.8%
Canada	3.5%
Pacific Basin	11.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.7%

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
Pfizer, Inc.	United States	Health Care	Pharmaceuticals
Total S.A.	France	Energy	Integrated Oil & Gas
Marine Harvest ASA	Norway	Consumer Staples	Packaged Foods & Meats
Merck & Co., Inc.	United States	Health Care	Pharmaceuticals
ENEL S.p.A.	Italy	Utilities	Electric Utilities
Johnson & Johnson	United States	Health Care	Pharmaceuticals
Unilever N.V., Certicaaten Van Aandelen	Netherlands	Consumer Staples	Personal Products
Philip Morris International, Inc.	United States	Consumer Staples	Tobacco

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.

44 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Financials – 1.0%
National Australia Bank Ltd.		125	$	3,091
Total Australia – 1.0%				3,091
Canada
Financials – 3.5%
Bank of Montreal		60		4,578
Royal Bank of Canada		80		6,198
				10,776
Total Canada – 3.5%				10,776
China
Consumer Discretionary – 1.7%
ANTA Sports Products Ltd.		1,222		5,138
Total China – 1.7%				5,138
France
Consumer Discretionary – 1.5%
LVMH Moet Hennessy-Louis Vuitton		17		4,608
Energy – 3.3%
Total S.A.		189		10,146
Financials – 1.0%
BNP Paribas S.A.		38		3,081
Industrials – 4.5%
Compagnie de Saint-Gobain		71		4,201
Schneider Electric S.A.		39		3,366
Vinci		64		6,079
				13,646
Telecommunication Services – 1.5%
Orange S.A.		267		4,377
Total France – 11.8%				35,858
Hong Kong
Financials – 1.4%
BOC Hong Kong (Holdings) Ltd.		890		4,324
Total Hong Kong – 1.4%				4,324
India
Financials – 1.4%
Indiabulls Housing Finance Ltd.		228		4,212
Total India – 1.4%				4,212
Ireland
Materials – 1.1%
CRH plc		86		3,299
Total Ireland – 1.1%				3,299

COMMON STOCKS (Continued)	Shares		Value
Italy
Utilities – 2.8%
ENEL S.p.A.		1,451	$	8,738
Total Italy – 2.8%				8,738
Japan
Consumer Discretionary – 1.6%
Bridgestone Corp.		106		4,804
Telecommunication Services – 1.8%
Nippon Telegraph and Telephone Corp.		122		5,586
Total Japan – 3.4%				10,390
Netherlands
Consumer Staples – 2.4%
Unilever N.V., Certicaaten Van Aandelen		126		7,474
Financials – 1.7%
ING Groep N.V., Certicaaten Van Aandelen		270		4,986
Industrials – 1.0%
Koninklijke Philips Electronics N.V., Ordinary Shares		75		3,111
Total Netherlands – 5.1%				15,571
Norway
Consumer Staples – 3.1%
Marine Harvest ASA		481		9,519
Total Norway – 3.1%				9,519
Russia
Energy – 1.6%
PJSC LUKOIL ADR		90		4,770
Total Russia – 1.6%				4,770
Singapore
Financials – 1.5%
DBS Group Holdings Ltd.		304		4,671
Total Singapore – 1.5%				4,671
South Korea
Information Technology – 1.4%
Samsung Electronics Co. Ltd.		2		4,477
Total South Korea – 1.4%				4,477

COMMON STOCKS (Continued)	Shares		Value
Spain
Utilities – 1.5%
Iberdrola S.A.		578	$	4,493
Total Spain – 1.5%				4,493
Switzerland
Consumer Staples – 1.5%
Nestle S.A., Registered Shares		55		4,589
Total Switzerland – 1.5%				4,589
United Kingdom
Consumer Discretionary – 2.7%
Bellway plc		75		3,327
GKN plc		1,074		4,979
				8,306
Consumer Staples – 3.3%
British American Tobacco plc		85		5,328
Diageo plc		138		4,546
				9,874
Energy – 3.9%
Royal Dutch Shell plc, Class A		400		12,045
Financials – 2.6%
HSBC Holdings plc		466		4,605
Prudential plc		143		3,429
				8,034
Health Care – 3.0%
AstraZeneca plc		70		4,628
GlaxoSmithKline plc		230		4,578
				9,206
Materials – 2.2%
Mondi plc		114		3,065
Rio Tinto plc		81		3,774
				6,839
Utilities – 2.0%
National Grid plc		480		5,952
Total United Kingdom – 19.7%				60,256
United States
Consumer Discretionary – 1.5%
Home Depot, Inc. (The)		29		4,694
Consumer Staples – 2.3%
Philip Morris International, Inc.		64		7,060
Energy – 1.7%
Chevron Corp.		43		5,065

2017 SEMIANNUAL REPORT 45

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Financials – 2.6%
Bank of America Corp.		184	$	4,663
Wells Fargo & Co.		60		3,309
				7,972
Health Care – 12.1%
AbbVie, Inc.		53		4,701
Eli Lilly and Co.		55		4,689
Johnson & Johnson		58		7,492
Merck & Co., Inc. (A)		141		9,034
Pfizer, Inc.		305		10,902
				36,818
Industrials – 4.4%
Eaton Corp.		55		4,239
Lockheed Martin Corp.		16		4,937
United Technologies Corp.		37		4,283
				13,459

COMMON STOCKS (Continued)	Shares		Value
Information Technology – 9.6%
Analog Devices, Inc.		36	$	3,076
Broadcom Corp., Class A		15		3,735
Cypress Semiconductor Corp.		219		3,291
Intel Corp.		176		6,687
Microsoft Corp.		168		12,509
				29,298
Materials – 1.6%
Eastman Chemical Co.		55		4,959
Total United States – 35.8%				109,325
TOTAL COMMON STOCKS – 99.3%			$	303,497
(Cost: $252,203)

SHORT-TERM SECURITIES	Principal		Value
Master Note – 0.4%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
1.450%, 10-4-17(B)	$	1,172	$	1,172
TOTAL SHORT-TERM SECURITIES – 0.4%			$	1,172
(Cost: $1,172)
TOTAL INVESTMENT SECURITIES – 99.7%			$	304,669
(Cost: $253,375)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3%				1,010
NET ASSETS – 100.0%			$	305,679

Notes to Schedule of Investments

(A) All or a portion of securities with an aggregate value of $1,591 are held in collateralized accounts for OTC foreign forward currency contracts collateral.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date		Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		11,319	U.S. Dollar		14,623		10-5-17	Citibank N.A.	$	—	$	546
Japanese Yen		759,023	U.S. Dollar		6,995		10-5-17	Citibank N.A.		249		—
									$	249	$	546

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	303,497	$	—	$	—
Short-Term Securities		—		1,172		—
Total	$	303,497	$	1,172	$	—
Forward Foreign Currency Contracts	$	—	$	249	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	546	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

LIBOR = London Interbank Offered Rate

OTC = Over the Counter

46 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

Market Sector Diversification

(as a % of net assets)
Financials	16.7%
Health Care	15.1%
Consumer Staples	12.6%
Information Technology	11.0%
Energy	10.5%
Industrials	9.9%
Consumer Discretionary	9.0%
Utilities	6.3%
Materials	4.9%
Telecommunication Services	3.3%
Other+	0.7%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 47

PORTFOLIO HIGHLIGHTS IVY GLOBAL GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	98.0%
Information Technology	26.2%
Consumer Discretionary	19.7%
Industrials	15.4%
Health Care	13.5%
Financials	11.6%
Energy	6.2%
Consumer Staples	5.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.0%

Lipper Rankings

Category: Global Large-Cap Growth Funds	Rank	Percentile
1 Year	90/135		67
3 Year	97/113		86
5 Year	82/94		87
10 Year	52/59		87

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

Country Weightings

North America	52.4%
United States	50.7%
Other North America	1.7%
Europe	27.1%
France	8.1%
Germany	7.0%
United Kingdom	4.8%
Netherlands	3.8%
Other Europe	3.4%
Pacific Basin	18.5%
Japan	7.8%
China	7.8%
Other Pacific Basin	2.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.0%

Top 10 Equity Holdings

Company	Country	Sector	Industry
MasterCard, Inc., Class A	United States	Information Technology	Data Processing & Outsourced Services
Airbus SE	France	Industrials	Aerospace & Defense
Microsoft Corp.	United States	Information Technology	Systems Software
Koninklijke Philips Electronics N.V., Ordinary Shares	Netherlands	Industrials	Industrial Conglomerates
Alibaba Group Holding Ltd. ADR	China	Information Technology	Internet Software & Services
Visa, Inc., Class A	United States	Information Technology	Data Processing & Outsourced Services
Facebook, Inc., Class A	United States	Information Technology	Internet Software & Services
Amazon.com, Inc.	United States	Consumer Discretionary	Internet & Direct Marketing Retail
Home Depot, Inc. (The)	United States	Consumer Discretionary	Home Improvement Retail
Celgene Corp.	United States	Health Care	Biotechnology

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.

48 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY GLOBAL GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Canada
Energy – 0.8%
Seven Generations Energy Ltd., Class A (A)		221	$	3,488
Total Canada – 0.8%				3,488
China
Financials – 2.3%
Ping An Insurance (Group) Co. of China Ltd., H Shares		1,316		10,096
Information Technology – 5.5%
Alibaba Group Holding Ltd. ADR (A)		88		15,152
Tencent Holdings Ltd.		206		8,866
				24,018
Total China – 7.8%				34,114
France
Consumer Staples – 1.2%
Pernod Ricard S.A.		38		5,282
Energy – 1.5%
Total S.A. ADR		126		6,770
Financials – 1.3%
Axa S.A.		184		5,571
Industrials – 4.1%
Airbus SE		189		17,985
Total France – 8.1%				35,608
Germany
Consumer Discretionary – 2.9%
Bayerische Motoren Werke AG		70		7,098
ProSiebenSat. 1 Media SE		167		5,701
				12,799
Health Care – 1.7%
Fresenius SE & Co. KGaA		92		7,435
Industrials – 2.4%
Siemens AG		74		10,417
Total Germany – 7.0%				30,651
India
Financials – 1.6%
HDFC Bank Ltd.		136		3,749
Housing Development Finance Corp. Ltd.		123		3,285
				7,034
Total India – 1.6%				7,034
Japan
Consumer Discretionary – 5.0%
Fuji Heavy Industries Ltd.		200		7,227

COMMON STOCKS (Continued)	Shares		Value
Japan (Continued)
Isuzu Motors Ltd.		571	$	7,571
Start Today Co. Ltd.		226		7,154
				21,952
Industrials – 2.8%
Dakin Industries Ltd.		63		6,339
Recruit Holdings Co. Ltd.		281		6,094
				12,433
Total Japan – 7.8%				34,385
Macau
Consumer Discretionary – 1.3%
Galaxy Entertainment Group		813		5,724
Total Macau – 1.3%				5,724
Mexico
Consumer Staples – 0.9%
Wal–Mart de Mexico S.A.B. de C.V.		1,711		3,917
Total Mexico – 0.9%				3,917
Netherlands
Industrials – 3.5%
Koninklijke Philips Electronics N.V., Ordinary Shares		374		15,447
Information Technology – 0.3%
ASML Holding N.V., NY Registry Shares		7		1,258
Total Netherlands – 3.8%				16,705
Spain
Consumer Discretionary – 0.8%
Mediaset Espana Comunicacion S.A.		333		3,759
Total Spain – 0.8%				3,759
Switzerland
Industrials – 2.6%
Adecco S.A.		148		11,521
Total Switzerland – 2.6%				11,521
United Kingdom
Consumer Discretionary – 1.0%
Compass Group plc		207		4,381
Consumer Staples – 1.2%
British American Tobacco plc		83		5,222
Financials – 2.6%
Prudential plc		480		11,484
Total United Kingdom – 4.8%				21,087

COMMON STOCKS (Continued)	Shares		Value
United States
Consumer Discretionary – 8.7%
Amazon.com, Inc. (A)		13	$	12,831
Home Depot, Inc. (The)		78		12,789
Lowe’s Co., Inc.		58		4,624
Marriott International, Inc., Class A		72		7,949
				38,193
Consumer Staples – 2.1%
Kraft Foods Group, Inc.		68		5,261
Philip Morris International, Inc.		38		4,269
				9,530
Energy – 3.9%
EOG Resources, Inc.		58		5,643
Halliburton Co.		127		5,862
Schlumberger Ltd.		80		5,604
				17,109
Financials – 3.8%
CME Group, Inc.		44		5,963
Goldman Sachs Group, Inc. (The)		22		5,310
MetLife, Inc. (A)		103		5,411
				16,684
Health Care – 11.8%
Alexion Pharmaceuticals, Inc. (A)		64		8,971
Allergan plc		28		5,646
Celgene Corp. (A)		81		11,743
HCA Holdings, Inc. (A)		109		8,694
Incyte Corp. (A)		23		2,732
Jazz Pharmaceuticals plc (A)		44		6,486
Thermo Fisher Scientific, Inc.		42		7,859
				52,131
Information Technology – 20.4%
Adobe Systems, Inc. (A)		73		10,935
Alphabet, Inc., Class C (A)		5		4,607
Arista Networks, Inc. (A)		15		2,857
Broadcom Corp., Class A		36		8,836
Facebook, Inc., Class A (A)		78		13,372
MasterCard, Inc., Class A		139		19,586
Microsoft Corp.		209		15,551
Visa, Inc., Class A		133		14,031
				89,775
Total United States – 50.7%				223,422
TOTAL COMMON STOCKS – 98.0%			$	431,415
(Cost: $344,284)

2017 SEMIANNUAL REPORT 49

SCHEDULE OF INVESTMENTS IVY GLOBAL GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

SHORT–TERM SECURITIES	Principal		Value
Commercial Paper (B) – 2.3%
J.M. Smucker Co. (The)
1.371%, 10–6–17	$	5,000	$	4,999
Walgreens Boots Alliance, Inc.
1.490%, 10–12–17		5,000		4,997
				9,996
Master Note – 1.4%
Toyota Motor Credit Corp. (1–Month U.S. LIBOR plus 15 bps)
1.450%, 10–4–17 (C)		6,138		6,138
TOTAL SHORT–TERM SECURITIES – 3.7%			$	16,134
(Cost: $16,135)

	Value
TOTAL INVESTMENT SECURITIES – 101.7%	$	447,549
(Cost: $360,419)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.7)%		(7,583	)
NET ASSETS – 100.0%		439,966

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2017.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	431,415	$	—	$	—
Short-Term Securities		—		16,134		—
Total	$	431,415	$	16,134	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

LIBOR = London Interbank Offered Rate

Market Sector Diversification
(as a % of net assets)
Information Technology	26.2%
Consumer Discretionary	19.7%
Industrials	15.4%
Health Care	13.5%
Financials	11.6%
Energy	6.2%
Consumer Staples	5.4%
Other+	2.0%

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

See Accompanying Notes to Financial Statements.

50 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY GLOBAL INCOME ALLOCATION FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	61.9%
Financials	15.6%
Energy	9.6%
Industrials	9.3%
Information Technology	5.6%
Health Care	5.3%
Consumer Staples	5.3%
Consumer Discretionary	4.9%
Utilities	2.5%
Materials	1.6%
Telecommunication Services	1.4%
Real Estate	0.8%
Bonds	36.1%
Corporate Debt Securities	29.4%
Other Government Securities	3.9%
Loans	1.7%
United States Government and Government Agency Obligations	1.1%
Cash and Other Assets (Net of Liabilities),and Cash Equivalents+	2.0%

Lipper Rankings

Category: Flexible Portfolio Funds	Rank	Percentile
1 Year	285/634		45
3 Year	278/465		60
5 Year	213/362		59
10 Year	131/162		81

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

Country Weightings

North America	44.8%
United States	38.4%
Canada	5.0%
Other North America	1.4%
Europe	41.2%
United Kingdom	9.9%
France	5.9%
Spain	5.5%
Luxembourg	4.5%
Netherlands	3.6%
Germany	3.6%
Other Europe	8.2%
Pacific Basin	8.1%
Australia	3.9%
Other Pacific Basin	4.2%
South America	2.6%
Bahamas/Caribbean	0.8%
Other	0.5%
Cash and Other Assets (Net of Liabilities),and Cash Equivalents+	2.0%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Lockheed Martin Corp.	United States	Industrials	Aerospace & Defense
Ares Capital Corp.	United States	Financials	Asset Management & Custody Banks
Philip Morris International, Inc.	United States	Consumer Staples	Tobacco
Vermilion Energy, Inc.	Canada	Energy	Oil & Gas Exploration & Production
Sampo plc, A Shares	Finland	Financials	Multi-Line Insurance
Fortress Transportation and Infrastructure Investors LLC	United States	Industrials	Trading Companies & Distributors
Orora Ltd.	Australia	Materials	Paper Packaging
Arthur J. Gallagher & Co.	United States	Financials	Insurance Brokers
Ferrovial S.A.	Spain	Industrials	Construction & Engineering
St. James’s Place plc	United Kingdom	Financials	Life & Health Insurance

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

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

2017 SEMIANNUAL REPORT 51

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Energy – 1.3%
Caltex Australia Ltd.		350	$	8,813
Financials – 1.0%
Challenger Ltd. (A)		725		7,080
Materials – 1.6%
Orora Ltd.		4,450		10,821
Total Australia – 3.9%				26,714
Canada
Energy – 4.3%
Enbridge, Inc.		200		8,368
Pembina Pipeline Corp.		267		9,371
Vermilion Energy, Inc.		341		12,115
				29,854
Total Canada – 4.3%				29,854
Finland
Financials – 1.7%
Sampo plc, A Shares		225		11,892
Total Finland – 1.7%				11,892
France
Financials – 1.1%
Axa S.A.		248		7,503
Industrials – 1.1%
Compagnie de Saint-Gobain		133		7,908
Telecommunication Services – 0.9%
Orange S.A.		387		6,340
Total France – 3.1%				21,751
Germany
Consumer Discretionary – 1.2%
Schaeffler AG		517		8,348
Financials – 1.2%
Deutsche Boerse AG		75		8,129
Industrials – 1.2%
Deutsche Post AG		195		8,681
Total Germany – 3.6%				25,158
India
Financials – 1.4%
Indiabulls Housing Finance Ltd.		520		9,607
Total India – 1.4%				9,607

COMMON STOCKS (Continued)	Shares		Value
Ireland
Health Care – 1.1%
Medtronic plc		100	$	7,777
Total Ireland – 1.1%				7,777
Italy
Financials – 1.1%
Banca Intesa S.p.A.		2,100		7,426
Total Italy – 1.1%				7,426
Japan
Consumer Discretionary – 1.1%
Fuji Heavy Industries Ltd.		215		7,757
Total Japan – 1.1%				7,757
New Zealand
Consumer Discretionary – 0.7%
SKYCITY Entertainment Group Ltd.		1,824		4,940
Total New Zealand – 0.7%				4,940
Norway
Energy – 1.3%
Aker BP ASA		466		9,001
Total Norway – 1.3%				9,001
Singapore
Consumer Discretionary – 0.5%
Asian Pay Television Trust		8,481		3,564
Total Singapore – 0.5%				3,564
Spain
Industrials – 2.4%
ACS Actividades de Construccion y Servicios S.A.		153		5,675
Ferrovial S.A.		486		10,709
				16,384
Utilities – 1.3%
Atlantica Yield plc		462		9,100
Total Spain – 3.7%				25,484
Switzerland
Consumer Staples – 1.2%
Nestle S.A., Registered Shares		100		8,375
Industrials – 1.1%
Adecco S.A.		95		7,397
Total Switzerland – 2.3%				15,772

COMMON STOCKS (Continued)	Shares		Value
United Kingdom
Consumer Staples – 1.2%
Imperial Tobacco Group plc		200	$	8,533
Energy – 1.4%
Royal Dutch Shell plc, Class A		315		9,527
Financials – 2.5%
Legal & General Group plc		2,091		7,282
St. James’s Place plc		655		10,059
				17,341
Total United Kingdom – 5.1%				35,401
United States
Consumer Discretionary – 1.4%
Home Depot, Inc. (The)		60		9,814
Consumer Staples – 2.9%
Kraft Foods Group, Inc. (B)		95		7,367
Philip Morris International, Inc.		110		12,185
				19,552
Energy – 1.3%
Valero Energy Corp.		120		9,231
Financials – 3.8%
American Capital Agency Corp.		375		8,130
Arthur J. Gallagher & Co.		175		10,771
Blackstone Mortgage Trust, Inc., Class A		245		7,591
				26,492
Health Care – 3.3%
Eli Lilly and Co.		87		7,442
Johnson & Johnson		55		7,151
Pfizer, Inc.		225		8,032
				22,625
Industrials – 3.5%
Fortress Transportation and Infrastructure Investors LLC		621		11,207
Lockheed Martin Corp.		43		13,342
				24,549
Information Technology – 5.6%
Broadcom Corp., Class A		40		9,702
Intel Corp.		250		9,520
Paychex, Inc.		164		9,851
Texas Instruments, Inc.		105		9,412
				38,485
Real Estate – 0.8%
Uniti Group, Inc.		390		5,717
Utilities – 1.2%
Dominion Energy, Inc.		110		8,463
Total United States – 23.8%				164,928
TOTAL COMMON STOCKS – 58.7%			$	407,026
(Cost: $370,267)

52 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

INVESTMENT FUNDS	Shares		Value
United States – 1.8%
Ares Capital Corp.		781	$	12,795
TOTAL INVESTMENT FUNDS – 1.8%				12,795
(Cost: $13,407)
PREFERRED STOCKS
United States
Health Care – 0.9%
Allergan plc, Convertible Series A, 5.500%		9		6,640
Telecommunication Services – 0.5%
Frontier Communications Corp., Convertible Series A, 11.125%		154		2,956
Total United States – 1.4%				9,596
TOTAL PREFERRED STOCKS – 1.4%			$	9,596
(Cost: $20,312)
CORPORATE DEBT SECURITIES	Principal
Brazil
Consumer Staples – 0.3%
Cosan Ltd.
5.950%, 9–20–24 (C)	$	2,000		2,048
Total Brazil – 0.3%				2,048
Cayman Islands
Financials – 0.8%
Banco Mercantil del Norte S.A.:
7.625%, 10–6–65 (C)		2,000		2,182
6.875%, 10–6–65 (C)		3,000		3,191
				5,373
Total Cayman Islands – 0.8%				5,373
Columbia
Utilities – 0.2%
Empresas Publicas de Medellin E.S.P.
8.375%, 2–1–21 (D)		COP3,888,000		1,369
Total Columbia – 0.2%				1,369
France
Financials – 2.8%
BNP Paribas S.A.
7.625%, 12–29–49 (C)	$	5,000		5,494
Societe Generale Group
7.375%, 12–29–49 (C)		6,000		6,495
Societe Generale S.A.
8.250%, 11–29–49		7,000		7,402
				19,391
Total France – 2.8%				19,391

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Ireland
Industrials – 0.1%
Russian Railways via RZD Capital Ltd.
8.300%, 4–2–19 (D)		RUB 50,000	$	869
Total Ireland – 0.1%				869
Italy
Financials – 0.6%
UniCredit S.p.A.
5.861%, 6–19–32 (C)	$	4,000		4,192
Total Italy – 0.6%				4,192
Luxembourg
Consumer Discretionary – 1.9%
Altice Financing S.A.
7.500%, 5–15–26 (C)		2,612		2,873
Altice S.A.
7.625%, 2–15–25 (C)		9,188		9,912
				12,785
Consumer Staples – 0.4%
Minerva Luxembourg S.A.
6.500%, 9–20–26 (C)		3,000		3,031
Industrials – 0.9%
JSL Europe (GTD by JSL S.A.)
7.750%, 7–26–24 (C)		6,000		6,315
Materials – 0.8%
VM Holding S.A.
5.375%, 5–4–27 (C)		5,000		5,250
Total Luxembourg – 4.0%				27,381
Mauritius
Industrials – 0.5%
HTA Group Ltd.
9.125%, 3–8–22 (C)		3,000		3,154
Total Mauritius – 0.5%				3,154
Mexico
Financials – 0.5%
Unifin Financiera S.A.B. de C.V. SOFOM E.N.R.
7.250%, 9–27–23 (C)		3,150		3,276
Telecommunication Services – 0.4%
America Movil S.A.B. de C.V.
6.450%, 12–5–22 (D)		MXN 47,000		2,455
Total Mexico – 0.9%				5,731

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Netherlands
Consumer Staples – 1.0%
MARB BondCo plc (GTD by Marfrig Global Foods S.A., Marfrig Overseas Ltd. and Marfrig Holdings (Europe) B.V.)
7.000%, 3–15–24 (C)	$	7,000	$	6,895
Energy – 1.9%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.):
8.750%, 5–23–26		8,000		9,610
5.999%, 1–27–28 (C)		3,503		3,503
				13,113
Materials – 0.6%
Constellium N.V.
8.000%, 1–15–23 (C)		4,253		4,497
Telecommunication Services – 0.1%
VimpleCom Holdings B.V.
9.000%, 2–13–18 (C)(D)		RUB 50,000		866
Total Netherlands – 3.6%				25,371
Singapore
Consumer Staples – 0.0%
Olam International Ltd.
6.000%, 8–10–18 (D)		SGD 250		190
Total Singapore – 0.0%				190
Spain
Financials – 1.1%
Banco Bilbao Vizcaya Argentaria S.A.
9.000%, 5–29–49	$	7,600		7,866
Industrials – 0.7%
ACI Airport Sudamerica S.A.
6.875%, 11–29–32 (C)		4,913		5,121
Total Spain – 1.8%				12,987
Turkey
Financials – 0.4%
Turkiye Garanti Bankasi A.S.
6.125%, 5–24–27 (C)		3,000		3,005
Total Turkey – 0.4%				3,005
United Kingdom
Energy – 0.6%
KCA Deutag UK Finance plc
9.875%, 4–1–22 (C)		4,167		4,323

2017 SEMIANNUAL REPORT 53

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

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials – 4.2%
Barclays plc
8.250%, 12–29–49	$	11,085	$	11,709
Royal Bank of Scotland Group plc (The):
7.500%, 12–29–49		6,000		6,283
8.625%, 12–29–49		4,983		5,525
Standard Chartered plc
7.500%, 12–29–49 (C)		5,000		5,337
				28,854
Total United Kingdom – 4.8%				33,177
United States
Financials – 5.1%
Bank of America Corp.
8.000%, 7–29–49		6,000		6,086
JPMorgan Chase & Co.
7.900%, 4–29–49		3,000		3,090
New Cotai LLC and New Cotai Capital Corp. (10.625% Cash or 10.625% PIK)
10.625%, 5–1–19 (C)(E)		15,414		15,106
Wells Fargo & Co.
7.980%, 3–29–49		10,534		10,850
				35,132
Health Care – 0.5%
Kinetic Concepts, Inc. and KCI USA, Inc.
12.500%, 11–1–21 (C)		225		250
Universal Hospital Services, Inc.
7.625%, 8–15–20		3,172		3,212
				3,462
Industrials – 1.0%
Prime Security Services Borrower LLC
9.250%, 5–15–23 (C)		6,111		6,744
Materials – 0.8%
BakerCorp International, Inc.
8.250%, 6–1–19		6,000		5,580
Telecommunication Services – 1.2%
Frontier Communications Corp.
11.000%, 9–15–25		10,000		8,500
Total United States – 8.6%				59,418
TOTAL CORPORATE DEBT SECURITIES – 29.4%			$	203,656
(Cost: $194,514)

OTHER GOVERNMENT SECURITIES (F)	Principal		Value
Argentina – 2.1%
Aeropuertos Argentina 2000 S.A.
6.875%, 2–1–27 (C)	$	1,300	$	1,386
Province of Buenos Aires
7.875%, 6–15–27 (C)		7,000		7,587
Province of Mendoza
8.375%, 5–19–24 (C)		2,000		2,206
Republic of Argentina
6.875%, 1–26–27		3,000		3,240
				14,419
Canada – 0.7%
City of Toronto
3.500%, 12–6–21 (D)	CAD	2,000		1,669
Province of Ontario
4.400%, 6–2–19 (D)		2,000		1,674
Regional Municipality of York
4.000%, 6–30–21 (D)		2,000		1,705
				5,048
Luxembourg – 0.5%
Atento Luxco 1 S.A.
6.125%, 8–10–22 (C)	$	3,600		3,758
Malaysia – 0.1%
Malaysia Government Bond
3.314%, 10–31–17 (D)	MYR	3,000		711
Mexico – 0.5%
Petroleos Mexicanos
6.500%, 3–13–27 (C)	$	3,000		3,331
TOTAL OTHER GOVERNMENT SECURITIES – 3.9%			$	27,267
(Cost: $27,237)
LOANS (G)
United States
Consumer Discretionary – 0.3%
Serta Simmons Bedding LLC (ICE LIBOR plus 800 bps)
9.312%, 11–8–24		1,827		1,752
Consumer Staples – 0.4%
GOBP Holdings, Inc. (ICE LIBOR plus 825 bps)
9.583%, 10–21–22		2,906		2,912
Industrials – 0.9%
Hampton Rubber Co. & SEI Holding Corp. (ICE LIBOR plus 800 bps)
9.235%, 3–27–22		3,333		2,946
Neff Rental LLC (ICE LIBOR plus 625 bps)
7.664%, 6–9–21		3,364		3,367
				6,313

LOANS (G) (Continued)	Principal		Value
Materials – 0.1%
EP Minerals LLC (ICE LIBOR plus 750 bps)
8.817%, 8–20–21 (H)	$	781	$	758
Total United States – 1.7%				11,735
TOTAL LOANS – 1.7%			$	11,735
(Cost: $12,116)
UNITED STATES GOVERNMENT OBLIGATIONS
United States – 1.1%
U.S. Treasury Bonds:
8.000%, 11–15–21		4,000		4,983
7.250%, 8–15–22		2,000		2,495
				7,478
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 1.1%			$	7,478
(Cost: $7,450)
SHORT-TERM SECURITIES
Commercial Paper (I) – 0.9%
Kroger Co. (The)
1.300%, 10–2–17		6,473		6,472
Master Note – 0.3%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
1.450%, 10–4–17 (J)		2,137		2,137
Municipal Obligations – 0.1%
NYC Hsng Dev Corp., Multi-Fam Mtg Rev Bonds (Spring Creek Apt I and II), Ser 2006A (GTD by FHLMC) (BVAL plus 14 bps)
0.990%, 10–7–17 (J)		400		400
TOTAL SHORT-TERM SECURITIES – 1.3%			$	9,009
(Cost: $9,010)
TOTAL INVESTMENT SECURITIES – 99.3%			$	688,562
(Cost: $654,313)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7%				4,671
NET ASSETS – 100.0%			$	693,233

54 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

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

(B) All or a portion of securities with an aggregate value of $427 are held in collateralized accounts for OTC foreign forward currency contracts collateral.

(C) 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 September 30, 2017 the total value of these securities amounted to $131,328 or 18.9% of net assets.

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

(E) 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.

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

(G) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

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

(I) Rate shown is the yield to maturity at September 30, 2017.

(J) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		9,400	U.S. Dollar		12,153	10-5-17	UBS AG	$	—	$	444
Euro		19,000	U.S. Dollar		22,492	10-5-17	UBS AG		33		—
								$	33	$	444

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	407,026	$	—	$	—
Investment Funds		12,795		—		—
Preferred Stocks		9,596		—		—
Corporate Debt Securities		—		203,656		—
Other Government Securities		—		27,267		—
Loans		—		10,977		758
United States Government Obligations		—		7,478		—
Short-Term Securities		—		9,009		—
Total	$	429,417	$	258,387	$	758
Forward Foreign Currency Contracts	$	—	$	33	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	444	$	—

During the period ended September 30, 2017, securities totaling $757 were transferred from Level 2 to Level 3 due to decreased availability of observable market data due to decreased market activity or information for these securities. Transfers in to Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Level 1 and 2 during the period.

2017 SEMIANNUAL REPORT 55

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

SEPTEMBER 30, 2017 (UNAUDITED)

The following acronyms are used throughout this schedule:

BVAL = Bloomberg Valuation Benchmark Municipal Curve

FHLMC = Federal Home Loan Mortgage Corp.

GTD = Guaranteed

ICE = Intercontinental Exchange

LIBOR = London Interbank Offered Rate

PIK = Payment in Kind

Market Sector Diversification

(as a % of net assets)
Financials	31.1%
Industrials	13.4%
Energy	12.1%
Consumer Staples	7.4%
Consumer Discretionary	7.1%
Health Care	5.8%
Information Technology	5.6%
Materials	3.9%
Other Government Securities	3.9%
Telecommunication Services	3.1%
Utilities	2.7%
United States Government and Government Agency Obligations	1.1%
Real Estate	0.8%
Other+	2.0%

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

See Accompanying Notes to Financial Statements.

56 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY GOVERNMENT MONEY MARKET FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Corporate Obligations	0.6%
Master Note	0.6%
United States Government and Government Agency Obligations	97.4%
United States Government and Government Agency Backed Municipal Obligations	1.6%
Cash and Other Assets (Net of Liabilities)	0.4%

Lipper Rankings

Category: U.S. Government Money Market Funds	Rank	Percentile
1 Year	100/166		60
3 Year	72/131		55
5 Year	62/129		48
10 Year	18/112		16

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.

2017 SEMIANNUAL REPORT 57

SCHEDULE OF INVESTMENTS IVY GOVERNMENT MONEY MARKET FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE OBLIGATIONS	Principal		Value
Master Note
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (A)	$	923	$	923
Total Master Note – 0.6%				923
TOTAL CORPORATE OBLIGATIONS – 0.6%			$	923
(Cost: $923)
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
Treasury Bills – 11.8%
U.S. Treasury Bills:
1.048%, 10–5–17		5,000		4,999
0.920%, 10–26–17		4,000		3,997
0.990%, 11–9–17		5,900		5,894
1.120%, 1–4–18		5,000		4,985
				19,875
Treasury Notes – 5.7%
U.S. Treasury Notes (3-Month USTMMR plus 17 bps),
1.220%, 10–2–17 (A)		2,000		2,000
U.S. Treasury Notes (3-Month USTMMR plus 17.4 bps),
1.230%, 10–2–17 (A)		6,040		6,039
U.S. Treasury Notes (3-Month USTMMR plus 7 bps),
1.120%, 10–1–17 (A)		1,500		1,500
				9,539

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
United States Government Agency Obligations – 79.9%
Federal Home Loan Bank,
0.700%, 10–2–17	$	5,116	$	5,116
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
1.120%, 10–4–17 (A)		230		230
1.120%, 10–7–17 (A)		81,953		81,953
1.130%, 10–7–17 (A)		34,297		34,298
1.150%, 10–7–17 (A)		12,340		12,340
				133,937
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS – 97.4%			$	163,351
(Cost: $163,351)
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY BACKED MUNICIPAL OBLIGATIONS
California – 0.4%
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (The Crossings Sr Apts/Phase I), Ser 2005 I (GTD by FNMA) (BVAL plus 10 bps),
0.990%, 10–7–17 (A)		200		200

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY BACKED MUNICIPAL OBLIGATIONS (Continued)	Principal		Value
California (Continued)
San Diego, CA, Hsng Auth, Var Rate Demand Multi-Fam Hsng Rev Rfdg Bonds (Hillside Garden Apt), Ser 2004C (GTD by FNMA) (BVAL plus 13 bps),
0.930%, 10–7–17 (A)	$	400	$	400
				600
Florida – 1.2%
Volusia Cnty, FL, Hsng Fin Auth, Multi-Fam Hsng Rev Rfdg Bonds (Fisherman’s Landing Apt), Ser 2002 (GTD by FNMA) (BVAL plus 20 bps),
1.000%, 10–7–17 (A)		2,000		2,000
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY BACKED MUNICIPAL OBLIGATIONS – 1.6%			$	2,600
(Cost: $2,600)
TOTAL INVESTMENT SECURITIES – 99.6%			$	166,874
(Cost: $166,874)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.4%				611
NET ASSETS – 100.0%			$	167,485

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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
Corporate Obligations	$	—	$	923	$	—
United States Government and Government Agency Obligations		—		163,351		—
United States Government and Government Agency Backed Municipal Obligations		—		2,600		—
Total	$	—	$	166,874	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

BVAL = Bloomberg Valuation Benchmark Curve

FNMA = Federal National Mortgage Association

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

TB = Treasury Bill

USTMMR = U.S. Treasury Money Market Rate

See Accompanying Notes to Financial Statements.

58 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY HIGH INCOME FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	2.8%
Consumer Discretionary	1.5%
Consumer Staples	0.5%
Financials	0.4%
Energy	0.3%
Telecommunication Services	0.1%
Warrants	0.0%
Bonds	90.9%
Corporate Debt Securities	69.6%
Loans	21.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	6.3%

Lipper Rankings

Category: High Yield Funds	Rank	Percentile
1 Year	26/669		4
3 Year	302/570		53
5 Year	84/460		19
10 Year	11/302		4

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

Quality Weightings

Investment Grade	1.0%
BBB	1.0%
Non-Investment Grade	89.9%
BB	12.0%
B	46.7%
CCC	25.7%
Below CCC	0.6%
Non-rated	4.9%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities	9.1%

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. For securities not rated by Moody’s, ratings are obtained from Fitch. 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 59

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares			Value
Consumer Discretionary
Cable & Satellite – 0.2%
Altice N.V., Class A (A)(B)		454		$	9,096
Casinos & Gaming – 0.0%
New Cotai Participation Corp., Class B (A)(C)(D)		—	*		354
Education Services – 1.3%
Laureate Education, Inc., Class A (A)		3,921			57,044
Total Consumer Discretionary – 1.5%					66,494
Energy
Coal & Consumable Fuels – 0.0%
Foresight Energy L.P.		357			1,502
Oil & Gas Equipment & Services – 0.1%
Larchmont Resources LLC (A)(C)(E)		15			4,905
Oil & Gas Exploration & Production – 0.2%
Midstates Petroleum Co., Inc. (A)		580			9,006
Sabine Oil & Gas Corp. (A)(C)		4			192
					9,198
Total Energy – 0.3%					15,605
Financials
Specialized Finance – 0.4%
Maritime Finance Co. Ltd. (A)(C)(D)(E)		1,750			17,640
Total Financials – 0.4%					17,640
TOTAL COMMON STOCKS – 2.2%				$	99,739
(Cost: 115,440)
PREFERRED STOCKS
Consumer Staples
Agricultural Products – 0.5%
Pinnacle Agriculture Enterprises LLC (A)(C)(D)		37,029			23,328
Total Consumer Staples – 0.5%					23,328
Telecommunication Services
Integrated Telecommunication Services – 0.1%
Frontier Communications Corp., Convertible Series A, 11.125%		196			3,762
Total Telecommunication Services – 0.1%					3,762
TOTAL PREFERRED STOCKS – 0.6%				$	27,090
(Cost: $33,402)

WARRANTS	Shares		Value
Agricultural Products – 0.0%
ASG Consolidated LLC, expires 5–15–18 (D)(F)		13	$	—	*
Apparel Retail – 0.0%
St. John Knits International, Inc., expires 12–31–29 (F)		48		127
Oil & Gas Exploration & Production – 0.0%
Sabine Oil & Gas Corp., expires 12–29–29 (C)(F)		16		103
				103
TOTAL WARRANTS – 0.0%			$	230
(Cost: $913)
CORPORATE DEBT SECURITIES	Principal
Consumer Discretionary
Advertising – 0.5%
Acosta, Inc.,
7.750%, 10–1–22 (G)	$	20,410		14,695
Outfront Media Capital LLC and Outfront Media Capital Corp.,
5.625%, 2–15–24		8,212		8,561
				23,256
Apparel Retail – 0.7%
Hot Topic, Inc.,
9.250%, 6–15–21 (G)		35,881		30,319
Apparel, Accessories & Luxury Goods – 0.1%
Wrangler Buyer Corp.,
6.000%, 10–1–25 (G)		2,162		2,200
Automotive Retail – 0.6%
Allison Transmission, Inc.,
5.000%, 10–1–24 (G)		4,034		4,187
Group 1 Automotive, Inc.,
5.000%, 6–1–22		3,436		3,560
Penske Automotive Group, Inc.,
5.500%, 5–15–26		2,983		3,084
Sonic Automotive, Inc.,
5.000%, 5–15–23		17,353		16,963
				27,794
Broadcasting – 2.9%
Clear Channel International B.V.,
8.750%, 12–15–20 (G)		3,257		3,420
Clear Channel Outdoor Holdings, Inc.,
6.500%, 11–15–22		43,832		45,096
Clear Channel Worldwide Holdings, Inc., Series A,
7.625%, 3–15–20		1,380		1,359
Clear Channel Worldwide Holdings, Inc., Series B,
7.625%, 3–15–20		28,217		27,864
Cumulus Media, Inc.,
7.750%, 5–1–19		33,969		9,766
iHeartCommunications, Inc. (GTD by iHeartMedia Capital I LLC),
10.625%, 3–15–23		9,924		7,046

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Broadcasting (Continued)
Sirius XM Radio, Inc.,
4.625%, 5–15–23 (G)	$	33,613	$	34,538
				129,089
Cable & Satellite – 8.5%
Altice Financing S.A.:
6.625%, 2–15–23 (G)		12,126		12,854
7.500%, 5–15–26 (G)		20,535		22,588
Altice S.A.:
7.250%, 5–15–22 (G)(H)	EUR	3,821		4,800
7.750%, 5–15–22 (G)	$	68,474		72,668
6.250%, 2–15–25 (G)(H)	EUR	3,496		4,483
7.625%, 2–15–25 (G)	$	14,356		15,487
Altice U.S. Finance I Corp.,
5.500%, 5–15–26 (G)		11,626		12,266
Block Communications, Inc.,
6.875%, 2–15–25 (G)		3,271		3,550
Cablevision Systems Corp.,
5.875%, 9–15–22		8,681		8,985
CCO Holdings LLC and CCO Holdings Capital Corp.:
5.500%, 5–1–26 (G)		5,722		5,930
5.000%, 2–1–28 (G)		18,991		18,991
DISH DBS Corp.:
6.750%, 6–1–21		12,085		13,293
5.875%, 7–15–22		10,630		11,294
5.875%, 11–15–24		3,054		3,200
7.750%, 7–1–26		8,887		10,198
Neptune Finco Corp.:
10.125%, 1–15–23 (G)		20,510		23,664
6.625%, 10–15–25 (G)		6,478		7,093
10.875%, 10–15–25 (G)		14,255		17,623
Numericable - SFR S.A.,
7.375%, 5–1–26 (G)		51,178		55,144
VTR Finance B.V.,
6.875%, 1–15–24 (G)		46,939		49,638
				373,749
Casinos & Gaming – 2.5%
Gateway Casinos & Entertainment Ltd.,
8.250%, 3–1–24 (G)		11,851		12,444
Golden Nugget, Inc.:
6.750%, 10–15–24 (G)		26,914		27,217
8.750%, 10–1–25 (G)		10,766		10,954
Studio City Finance Ltd.,
8.500%, 12–1–20 (G)		8,973		9,231
Wynn Macau Ltd.:
5.250%, 10–15–21 (G)		38,222		39,235
4.875%, 10–1–24 (G)		3,705		3,775
5.500%, 10–1–27 (G)		5,385		5,462
				108,318
Department Stores – 0.3%
Bon-Ton Stores, Inc. (The),
8.000%, 6–15–21		37,256		13,412
Education Services – 1.9%
Laureate Education, Inc.,
8.250%, 5–1–25 (G)		78,145		84,201

60 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Homefurnishing Retail – 0.5%
Restoration Hardware Holdings, Inc., Convertible:
0.000%, 6–15–19 (G)(I)	$	8,977	$	8,225
0.000%, 7–15–20 (G)(I)		14,358		12,249
				20,474
Leisure Facilities – 0.1%
Cedar Fair L.P., Magnum Management Corp., Canada’s Wonderland Co. and Millennium Operations LLC,
5.375%, 4–15–27 (G)		5,444		5,716
Movies & Entertainment – 1.3%
Cinemark USA, Inc.:
5.125%, 12–15–22		1,258		1,291
4.875%, 6–1–23		21,139		21,350
EMI Music Publishing Group North America Holdings,
7.625%, 6–15–24 (G)		7,135		7,938
WMG Acquisition Corp.,
6.750%, 4–15–22 (G)		25,538		26,847
				57,426
Publishing – 0.6%
E.W. Scripps Co.,
5.125%, 5–15–25 (G)		1,630		1,662
MDC Partners, Inc.,
6.500%, 5–1–24 (G)		26,229		26,426
				28,088
Restaurants – 0.5%
1011778 B.C. Unlimited Liability Co. and New Red Finance, Inc.,
5.000%, 10–15–25 (G)		21,714		22,094
Specialized Consumer Services – 0.5%
Nielsen Co. (Luxembourg) S.a.r.l. (The):
5.500%, 10–1–21 (G)		3,151		3,238
5.000%, 2–1–25 (G)		5,614		5,846
Nielsen Finance LLC and Nielsen Finance Co.,
5.000%, 4–15–22 (G)		15,039		15,584
				24,668
Specialty Stores – 1.6%
Cumberland Farms, Inc.,
6.750%, 5–1–25 (G)		8,822		9,376
Jo-Ann Stores Holdings, Inc. (9.750% Cash or 10.500% PIK),
9.750%, 10–15–19 (G)(J)		64,495		62,721
				72,097
Total Consumer Discretionary – 23.1%				1,022,901
Consumer Staples
Food Distributors – 1.4%
Performance Food Group, Inc.,
5.500%, 6–1–24 (G)		12,254		12,652

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Food Distributors (Continued)
Simmons Foods, Inc.,
7.875%, 10–1–21 (G)	$	34,500	$	36,604
U.S. Foods, Inc.,
5.875%, 6–15–24 (G)		10,878		11,395
				60,651
Packaged Foods & Meats – 2.1%
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.),
7.750%, 10–28–20 (G)		2,300		2,352
JBS USA LLC and JBS USA Finance, Inc.:
5.875%, 7–15–24 (G)		25,097		25,160
5.750%, 6–15–25 (G)		20,007		19,932
Pilgrim’s Pride Corp.:
5.750%, 3–15–25 (G)		1,616		1,668
5.875%, 9–30–27 (G)		7,546		7,735
Post Holdings, Inc.:
5.500%, 3–1–25 (G)		4,205		4,362
5.000%, 8–15–26 (G)		5,849		5,838
5.750%, 3–1–27 (G)		25,924		26,702
				93,749
Personal Products – 0.1%
Revlon Consumer Products Corp.,
5.750%, 2–15–21		4,734		4,130
Revlon Escrow Corp.,
6.250%, 8–1–24		2,924		2,259
				6,389
Total Consumer Staples – 3.6%				160,789
Energy
Oil & Gas Drilling – 1.3%
KCA Deutag UK Finance plc:
7.250%, 5–15–21 (G)		18,636		17,844
9.875%, 4–1–22 (G)		11,507		11,938
Noble Holding International Ltd.,
7.750%, 1–15–24		5,677		5,038
Offshore Drilling Holding S.A.,
8.375%, 9–20–20 (G)(K)		44,521		18,254
Offshore Group Investment Ltd.,
0.000%, 11–1–19(D)		14,866		—	*
Rowan Cos., Inc. (GTD by Rowan plc),
7.375%, 6–15–25		3,398		3,322
Trinidad Drilling Ltd.,
6.625%, 2–15–25 (G)		280		262
				56,658
Oil & Gas Equipment & Services – 0.4%
Brand Energy & Infrastructure Services, Inc.,
8.500%, 7–15–25 (G)		7,963		8,620
SESI LLC:
7.125%, 12–15–21		6,059		6,180
7.750%, 9–15–24 (G)		2,170		2,246
				17,046

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Exploration & Production – 4.2%
Bellatrix Exploration Ltd.,
8.500%, 5–15–20 (G)	$	13,598	$	12,646
California Resources Corp.,
8.000%, 12–15–22 (G)		4,662		3,030
Carrizo Oil & Gas, Inc.,
7.500%, 9–15–20		5,785		5,908
Continental Resources, Inc. (GTD by Banner Pipeline Co. LLC and CLR Asset Holdings LLC),
5.000%, 9–15–22		14,182		14,413
Crownrock L.P.,
7.750%, 2–15–23 (G)		6,941		7,410
EnCana Corp.,
6.500%, 8–15–34		7,113		8,321
Endeavor Energy Resources L.P.:
7.000%, 8–15–21 (G)		24,868		25,738
8.125%, 9–15–23 (G)		6,146		6,607
Laredo Petroleum, Inc.:
7.375%, 5–1–22		17,510		18,123
6.250%, 3–15–23		3,784		3,897
Murphy Oil USA, Inc. (GTD by Murphy USA),
5.625%, 5–1–27		1,629		1,751
PDC Energy, Inc.,
6.125%, 9–15–24		2,310		2,414
Seven Generations Energy Ltd.:
8.250%, 5–15–20 (G)		15,124		15,804
6.750%, 5–1–23 (G)		27,127		28,585
5.375%, 9–30–25 (G)		10,771		10,852
Ultra Resources, Inc.:
6.875%, 4–15–22 (G)		9,273		9,459
7.125%, 4–15–25 (G)		2,726		2,753
Whiting Petroleum Corp.,
5.750%, 3–15–21		6,223		6,114
				183,825
Oil & Gas Refining & Marketing – 0.1%
Callon Petroleum Co. (GTD by Callon Petroleum Operating Co.),
6.125%, 10–1–24		5,596		5,848
Oil & Gas Storage & Transportation – 0.0%
Crestwood Midstream Partners L.P. and Crestwood Midstream Finance Corp.,
6.250%, 4–1–23		2,433		2,509
Total Energy – 6.0%				265,886
Financials
Consumer Finance – 1.5%
Creditcorp,
12.000%, 7–15–18 (G)		40,520		34,847
CURO Financial Technologies Corp.,
12.000%, 3–1–22 (G)		5,881		6,322
Quicken Loans, Inc.,
5.750%, 5–1–25 (G)		23,889		25,084
				66,253

2017 SEMIANNUAL REPORT 61

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Insurance Brokers – 0.7%
NFP Corp.,
6.875%, 7–15–25 (G)	$	32,425	$	32,911
Investment Banking & Brokerage – 0.2%
E*TRADE Financial Corp.,
5.875%, 12–29–49		4,068		4,332
VHF Parent LLC,
6.750%, 6–15–22 (G)		3,797		3,954
				8,286
Other Diversified Financial Services – 3.0%
AAF Holdings LLC and AAF Finance Co.
(12.000% Cash or 12.750% PIK),
12.000%, 7–1–19 (G)(J)		10,702		11,184
Balboa Merger Sub, Inc.,
11.375%, 12–1–21 (G)		22,692		24,819
New Cotai LLC and New Cotai Capital Corp.
(10.625% Cash or 10.625% PIK),
10.625%, 5–1–19 (G)(J)		96,762		94,827
				130,830
Specialized Finance – 1.9%
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.:
5.875%, 6–15–21 (G)		4,154		4,343
5.450%, 6–15–23 (G)		2,979		3,267
7.125%, 6–15–24 (G)		4,154		4,589
6.020%, 6–15–26 (G)		5,960		6,617
Flexi-Van Leasing, Inc.,
7.875%, 8–15–18 (G)		12,769		12,769
TMX Finance LLC and TitleMax Finance Corp.,
8.500%, 9–15–18 (G)		57,305		53,007
				84,592
Thrifts & Mortgage Finance – 0.3%
Provident Funding Associates L.P. and PFG Finance Corp.,
6.375%, 6–15–25 (G)		13,571		14,249
Total Financials – 7.6%				337,121
Health Care
Health Care Facilities – 1.3%
DaVita HealthCare Partners, Inc.,
5.125%, 7–15–24		2,970		2,957
Greatbatch Ltd.,
9.125%, 11–1–23 (G)		20,906		22,804
HCA, Inc. (GTD by HCA Holdings, Inc.),
5.250%, 6–15–26		2,404		2,590
MPH Acquisition Holdings LLC,
7.125%, 6–1–24 (G)		8,898		9,565
Surgery Center Holdings, Inc.,
8.875%, 4–15–21 (G)		17,519		18,395
Tenet Healthcare Corp.,
7.500%, 1–1–22 (G)		1,985		2,102
				58,413

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care Supplies – 0.8%
Kinetic Concepts, Inc. and KCI USA, Inc.,
12.500%, 11–1–21 (G)	$	2,794	$	3,108
Universal Hospital Services, Inc.,
7.625%, 8–15–20		30,077		30,453
				33,561
Life Sciences Tools & Services – 0.6%
Avantor, Inc.:
6.000%, 10–1–24 (G)		8,080		8,272
9.000%, 10–1–25 (G)		18,852		19,276
				27,548
Pharmaceuticals – 1.6%
Concordia Healthcare Corp.:
9.500%, 10–21–22 (G)		59,541		10,419
7.000%, 4–15–23 (G)		7,125		1,158
IMS Health, Inc.,
5.000%, 10–15–26 (G)		6,780		7,187
Valeant Pharmaceuticals International, Inc.:
7.000%, 10–1–20		8,127		8,178
5.500%, 3–1–23 (G)		545		478
VPII Escrow Corp.,
7.500%, 7–15–21 (G)		6,802		6,785
VRX Escrow Corp.:
5.375%, 3–15–20 (G)		12,225		12,210
5.875%, 5–15–23 (G)		8,682		7,673
6.125%, 4–15–25 (G)		16,249		14,258
				68,346
Total Health Care – 4.3%				187,868
Industrials
Aerospace & Defense – 1.8%
KLX, Inc.,
5.875%, 12–1–22 (G)		21,081		22,086
TransDigm, Inc.,
6.500%, 5–15–25		5,455		5,619
TransDigm, Inc. (GTD by TransDigm Group, Inc.):
6.000%, 7–15–22		13,200		13,695
6.500%, 7–15–24		27,597		28,494
6.375%, 6–15–26		10,559		10,816
				80,710
Air Freight & Logistics – 0.3%
XPO Logistics, Inc.:
6.500%, 6–15–22 (G)		7,550		7,928
6.125%, 9–1–23 (G)		4,075		4,253
				12,181
Building Products – 1.1%
Alcoa Nederland Holding B.V.:
6.750%, 9–30–24 (G)		2,557		2,832
7.000%, 9–30–26 (G)		2,557		2,896
Ply Gem Industries, Inc.,
6.500%, 2–1–22		28,758		30,004

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Building Products (Continued)
Summit Materials LLC and Summit Materials Finance Corp.:
8.500%, 4–15–22	$	2,416	$	2,718
6.125%, 7–15–23		5,046		5,323
WESCO Distribution, Inc. (GTD by WESCO International, Inc.),
5.375%, 6–15–24		5,940		6,267
				50,040
Diversified Support Services – 0.5%
Ahern Rentals, Inc.,
7.375%, 5–15–23 (G)		17,389		15,911
Ritchie Bros. Auctioneers, Inc.,
5.375%, 1–15–25 (G)		5,675		6,001
United Rentals (North America), Inc. (GTD by United Rentals, Inc.),
5.875%, 9–15–26		1,490		1,619
				23,531
Environmental & Facilities Services – 0.2%
GFL Environmental, Inc.:
9.875%, 2–1–21 (G)		5,386		5,741
5.625%, 5–1–22 (G)		3,790		3,942
				9,683
Industrial Conglomerates – 0.0%
TriMas Corp.,
4.875%, 10–15–25 (G)		1,077		1,086
Research & Consulting Services – 0.1%
Eagle Holding Co. II LLC (7.625% Cash or 8.375% PIK),
7.625%, 5–15–22 (G)(J)		2,173		2,254
Security & Alarm Services – 1.1%
Prime Security Services Borrower LLC,
9.250%, 5–15–23 (G)		42,686		47,106
Total Industrials – 5.1%				226,591
Information Technology
Application Software – 1.5%
Kronos Acquisition Holdings, Inc.,
9.000%, 8–15–23 (G)		64,021		62,421
Solera LLC and Solera Finance, Inc.,
10.500%, 3–1–24 (G)		4,337		4,937
				67,358
Communications Equipment – 0.5%
West Corp.,
5.375%, 7–15–22 (G)		20,642		20,848
Data Processing & Outsourced Services – 2.4%
Alliance Data Systems Corp.:
5.875%, 11–1–21 (G)		7,708		8,016
5.375%, 8–1–22 (G)		29,436		30,319
Italics Merger Sub, Inc.,
7.125%, 7–15–23 (G)		59,658		59,956

62 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Data Processing & Outsourced Services (Continued)
j2 Cloud Services LLC and j2 Global, Inc.,
6.000%, 7–15–25 (G)	$	5,422	$	5,673
				103,964
Electronic Components – 0.1%
TTM Technologies, Inc.,
5.625%, 10–1–25 (G)		5,385		5,449
IT Consulting & Other Services – 1.1%
Cardtronics, Inc. and Cardtronics USA, Inc.,
5.500%, 5–1–25 (G)		3,285		3,361
NCR Escrow Corp.:
5.875%, 12–15–21		21,676		22,396
6.375%, 12–15–23		20,537		21,905
				47,662
Semiconductors – 0.3%
Micron Technology, Inc.:
7.500%, 9–15–23		12,294		13,662
5.500%, 2–1–25		1,035		1,103
				14,765
Technology Hardware, Storage & Peripherals – 0.5%
Western Digital Corp.:
7.375%, 4–1–23 (G)		3,009		3,296
10.500%, 4–1–24		16,726		19,653
				22,949
Total Information Technology – 6.4%				282,995
Materials
Aluminum – 2.1%
Constellium N.V.:
8.000%, 1–15–23 (G)		34,437		36,417
5.750%, 5–15–24 (G)		16,523		16,523
6.625%, 3–1–25 (G)		22,308		22,838
Kaiser Aluminum Corp.,
5.875%, 5–15–24		2,392		2,560
Novelis Corp. (GTD by Novelis, Inc.):
6.250%, 8–15–24 (G)		8,724		9,096
5.875%, 9–30–26 (G)		5,784		5,871
				93,305
Commodity Chemicals – 0.4%
NOVA Chemicals Corp.:
4.875%, 6–1–24 (G)		13,567		13,737
5.250%, 6–1–27 (G)		5,427		5,481
				19,218
Construction Materials – 0.7%
Hillman Group, Inc. (The),
6.375%, 7–15–22 (G)		30,106		29,955
Diversified Chemicals – 0.4%
PSPC Escrow Corp.,
6.500%, 2–1–22 (G)		11,779		12,206
PSPC Escrow II Corp.,
10.375%, 5–1–21 (G)		5,919		6,452
				18,658

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Metals & Mining – 0.4%
Artsonig Pty Ltd. (11.500% Cash or 12.000% PIK),
11.500%, 4–1–19 (G)(J)	$	52,349	$	524
Crystal Merger Sub, Inc.,
7.625%, 10–15–21 (G)		8,259		8,584
FMG Resources August 2006 Partners Ltd.,
5.125%, 5–15–24 (G)		1,388		1,409
Lundin Mining Corp.:
7.500%, 11–1–20 (G)		1,178		1,225
7.875%, 11–1–22 (G)		3,980		4,328
				16,070
Fertilizers & Agricultural Chemicals – 1.2%
CF Industries, Inc.,
3.450%, 6–1–23		2,162		2,135
Pinnacle Operating Corp.,
9.000%, 5–15–23 (G)		53,335		50,401
				52,536
Metal & Glass Containers – 1.9%
ARD Finance S.A.,
7.125%, 9–15–23		3,217		3,434
BakerCorp International, Inc.,
8.250%, 6–1–19		67,965		63,208
HudBay Minerals, Inc.:
7.250%, 1–15–23 (G)		2,262		2,409
7.625%, 1–15–25 (G)		3,395		3,675
Signode Industrial Group,
6.375%, 5–1–22 (G)		11,052		11,466
				84,192
Paper Packaging – 0.3%
Flex Acquisition Co., Inc.,
6.875%, 1–15–25 (G)		3,940		4,090
Reynolds Group Issuer, Inc., Reynolds Group Issuer LLC and Reynolds Group Issuer (Luxembourg) S.A.,
5.125%, 7–15–23 (G)		8,571		8,945
				13,035
Specialty Chemicals – 0.1%
Kraton Polymers LLC and Kraton Polymers Capital Corp.,
7.000%, 4–15–25 (G)		5,507		5,906
Steel – 0.1%
U.S. Steel Corp.,
8.375%, 7–1–21 (G)		4,186		4,626
Total Materials – 7.6%				337,501
Real Estate
Health Care REITs – 0.1%
MPT Operating Partnership L.P. and MPT Finance Corp. (GTD by Medical Properties Trust, Inc.),
5.250%, 8–1–26		2,928		3,023

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Real Estate Development – 0.4%
Hub Holdings LLC and Hub Holdings Finance, Inc. (8.125% Cash or 8.875% PIK),
8.125%, 7–15–19 (G)(J)	$	17,764	$	17,808
Total Real Estate – 0.5%				20,831
Telecommunication Services
Alternative Carriers – 0.6%
Consolidated Communications Finance II Co.,
6.500%, 10–1–22		21,192		20,371
Zayo Group LLC and Zayo Capital, Inc.,
5.750%, 1–15–27 (G)		4,500		4,770
				25,141
Integrated Telecommunication Services – 3.4%
Frontier Communications Corp.:
6.250%, 9–15–21		15,908		13,080
10.500%, 9–15–22		20,679		18,042
7.125%, 1–15–23		2,412		1,845
6.875%, 1–15–25		8,428		6,300
11.000%, 9–15–25		23,102		19,637
GCI, Inc.,
6.875%, 4–15–25		22,144		23,805
Sprint Corp.:
7.250%, 9–15–21		43,872		48,753
7.875%, 9–15–23		16,141		18,723
				150,185
Wireless Telecommunication Service – 1.4%
Sable International Finance Ltd.,
6.875%, 8–1–22 (G)		26,720		28,724
Sprint Nextel Corp.:
9.000%, 11–15–18 (G)		1,367		1,468
7.000%, 8–15–20		3,022		3,302
11.500%, 11–15–21		2,342		2,977
T–Mobile USA, Inc.:
6.000%, 4–15–24		10,395		11,032
6.500%, 1–15–26		12,863		14,197
				61,700
Total Telecommunication Services – 5.4%				237,026
TOTAL CORPORATE DEBT SECURITIES – 69.6%			$	3,079,509
(Cost: $3,174,500)
LOANS (L)
Consumer Discretionary
Advertising – 0.4%
Advantage Sales & Marketing, Inc. (ICE LIBOR plus 650 bps),
7.735%, 7–25–22		18,474		16,525

2017 SEMIANNUAL REPORT 63

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

LOANS (L) (Continued)	Principal		Value
Apparel Retail – 1.6%
Talbots, Inc. (The) (ICE LIBOR plus 450 bps),
5.735%, 3–19–20	$	19,207	$	18,439
Talbots, Inc. (The) (ICE LIBOR plus 850 bps),
9.735%, 3–19–21 (D)		33,232		32,235
True Religion Apparel, Inc. (ICE LIBOR plus 487.5 bps):
6.101%, 7–30–19 (M)		202		52
6.171%, 7–30–19 (M)		77,951		19,877
				70,603
Casinos & Gaming – 0.1%
Gateway Casinos & Entertainment Ltd. (ICE LIBOR plus 375 bps),
5.083%, 2–22–23		3,910		3,931
Department Stores – 0.9%
Belk, Inc. (ICE LIBOR plus 475 bps),
6.054%, 12–10–22		45,066		37,692
Education Services – 1.4%
Laureate Education, Inc. (ICE LIBOR plus 450 bps),
5.735%, 4–26–24		62,411		62,632
General Merchandise Stores – 2.1%
BJ’s Wholesale Club, Inc. (ICE LIBOR plus 375 bps),
4.982%, 2–3–24		36,459		34,896
BJ’s Wholesale Club, Inc. (ICE LIBOR plus 750 bps),
8.732%, 1–26–25		28,637		27,306
Orchard Acquisition Co. LLC (ICE LIBOR plus 600 bps),
7.313%, 2–8–19		63,765		29,757
				91,959
Home Furnishings – 0.6%
Serta Simmons Bedding LLC (ICE LIBOR plus 800 bps),
9.312%, 11–8–24		26,971		25,875
Hotels, Resorts & Cruise Lines – 0.0%
Travel Leaders Group LLC (ICE LIBOR plus 450 bps),
5.814%, 1–25–24		1,681		1,703
Housewares & Specialties – 0.4%
KIK Custom Products, Inc. (ICE LIBOR plus 450 bps),
5.737%, 8–26–22		16,302		16,448
Restaurants – 0.4%
NPC International, Inc. (ICE LIBOR plus 350 bps),
4.738%, 4–20–24		3,828		3,866
NPC International, Inc. (ICE LIBOR plus 750 bps),
8.738%, 4–18–25		15,590		15,785
				19,651

LOANS (L) (Continued)	Principal		Value
Specialized Consumer Services – 0.1%
Asurion LLC (ICE LIBOR plus 600 bps),
7.235%, 8–4–25	$	2,700	$	2,759
Specialty Stores – 0.4%
Jo–Ann Stores, Inc. (ICE LIBOR plus 500 bps),
6.391%, 10–21–23		15,450		14,736
Total Consumer Discretionary – 8.4%				364,514
Consumer Staples
Food Distributors – 0.3%
Chefs’ Warehouse, Inc. (The) (ICE LIBOR plus 575 bps),
5.990%, 6–22–22		11,926		12,060
Hypermarkets & Super Centers – 0.4%
GOBP Holdings, Inc. (ICE LIBOR plus 825 bps),
9.583%, 10–21–22		15,658		15,688
Packaged Foods & Meats – 0.4%
Shearer’s Foods LLC (ICE LIBOR plus 675 bps),
8.083%, 6–30–22 (D)		18,980		17,936
Total Consumer Staples – 1.1%				45,684
Energy
Coal & Consumable Fuels – 1.1%
Foresight Energy LLC (ICE LIBOR plus 725 bps),
7.083%, 3–28–22		35,620		33,238
Westmoreland Coal Co. (ICE LIBOR plus 650 bps),
7.833%, 12–16–20 (D)		19,953		12,969
				46,207
Oil & Gas Drilling – 0.6%
KCA Deutag Alpha Ltd. (ICE LIBOR plus 525 bps),
7.065%, 5–16–20		26,249		25,273
Oil & Gas Equipment & Services – 0.5%
Brand Energy & Infrastructure Services, Inc. (ICE LIBOR plus 425 bps):
5.514%, 6–21–24		9,068		9,111
5.564%, 6–21–24		1,728		1,737
5.583%, 6–21–24		27		27
Larchmont Resources LLC (10.000% Cash or 10.000% PIK),
10.320%, 8–7–20 (D)(J)(R)		12,317		11,947
				22,822
Oil & Gas Exploration & Production – 0.4%
Chesapeake Energy Corp. (ICE LIBOR plus 750 bps),
8.814%, 8–23–21		17,434		18,769

LOANS (L) (Continued)	Principal		Value
Oil & Gas Storage & Transportation – 1.3%
Bowie Resources Holdings LLC (ICE LIBOR plus 1,075 bps),
11.985%, 2–16–21	$	26,759	$	24,830
Bowie Resources Holdings LLC (ICE LIBOR plus 575 bps),
6.985%, 8–12–20		33,170		31,967
				56,797
Total Energy – 3.9%				169,868
Financials
Insurance Brokers – 0.2%
NFP Corp. (ICE LIBOR plus 350 bps),
4.735%, 1–8–24		6,938		6,982
Investment Banking & Brokerage – 0.5%
Jane Street Group LLC (ICE LIBOR plus 450 bps),
5.735%, 8–25–22		21,610		21,786
Specialized Finance – 0.1%
Orchestra Borrower LLC and Orchestra Co–Issuer, Inc. (3–Month ICE LIBOR plus 375 bps),
5.061%, 12–30–21		3,714		3,751
Total Financials – 0.8%				32,519
Health Care
Life Sciences Tools & Services – 0.3%
Avantor, Inc.,
0.000%, 9–22–24 (N)		13,419		13,456
Total Health Care – 0.3%				13,456
Industrials
Building Products – 0.5%
Hampton Rubber Co. & SEI Holding Corp. (ICE LIBOR plus 800 bps),
9.235%, 3–27–22		23,667		20,916
Construction & Engineering – 0.3%
Tensar International Corp. (ICE LIBOR plus 850 bps),
9.833%, 7–10–22 (D)		15,197		12,158
Diversified Support Services – 0.3%
USS Ultimate Holdings, Inc. (ICE LIBOR plus 375 bps),
4.984%, 8–25–24		6,483		6,548
USS Ultimate Holdings, Inc. (ICE LIBOR plus 775 bps),
8.985%, 8–25–25		5,403		5,430
				11,978

64 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

LOANS (L) (Continued)	Principal		Value
Industrial Conglomerates – 1.0%
Crosby Worldwide Ltd. (ICE LIBOR plus 300 bps),
4.315%, 11–22–20	$	5,587	$	5,154
Crosby Worldwide Ltd. (ICE LIBOR plus 600 bps),
7.315%, 11–22–21		10,976		9,055
PAE Holding Corp. (ICE LIBOR plus 550 bps),
6.735%, 10–20–22		26,279		26,378
PAE Holding Corp. (ICE LIBOR plus 950 bps),
10.735%, 10–20–23		4,490		4,496
				45,083
Industrial Machinery – 1.4%
Dynacast International LLC (ICE LIBOR plus 850 bps),
9.833%, 1–30–23(D)		61,040		61,040
Total Industrials – 3.5%				151,175
Information Technology
Application Software – 0.5%
TIBCO Software, Inc. (ICE LIBOR plus 350 bps),
4.740%, 12–4–20		21,073		21,126
Applications Software – 0.2%
Applied Systems, Inc.,
0.000%, 9–18–25 (N)		8,585		8,843
Data Processing & Outsourced Services – 0.1%
Colorado Buyer, Inc. (ICE LIBOR plus 300 bps),
8.570%, 5–1–25		4,407		4,466
Internet Software & Services – 1.2%
Ancestry.com LLC (ICE LIBOR plus 825 bps),
9.490%, 10–19–24		8,329		8,443
TravelCLICK, Inc. & TCH–2 Holdings LLC (ICE LIBOR plus 400 bps),
5.235%, 5–12–21		20,644		20,721
TravelCLICK, Inc. & TCH–2 Holdings LLC (ICE LIBOR plus 775 bps),
8.985%, 11–12–21 (D)		23,427		23,427
				52,591
IT Consulting & Other Services – 0.0%
Triple Point Group Holdings, Inc. (ICE LIBOR plus 425 bps),
5.583%, 7–13–20		1,839		1,676
Total Information Technology – 2.0%				88,702

LOANS (L) (Continued)	Principal		Value
Materials
Diversified Metals & Mining – 0.3%
EP Minerals LLC (ICE LIBOR plus 750 bps),
8.817%, 8–20–21 (D)	$	12,375	$	12,004
Paper Packaging – 1.0%
FPC Holdings, Inc. (ICE LIBOR plus 800 bps),
9.333%, 5–27–20		31,969		30,637
Ranpak (Rack Merger) (ICE LIBOR plus 725 bps),
8.484%, 10–1–22 (D)		14,052		13,912
				44,549
Total Materials – 1.3%				56,553
TOTAL LOANS – 21.3%			$	922,471
(Cost: $1,036,355)
SHORT–TERM SECURITIES
Commercial Paper (O) – 5.1%
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.),
1.580%, 10–10–17		5,000		4,998
DTE Electric Co.,
1.281%, 10–4–17		10,000		9,998
E.I. du Pont de Nemours and Co.:
1.510%, 10–10–17		10,375		10,371
1.460%, 10–17–17		15,000		14,990
1.460%, 10–18–17		2,500		2,498
1.440%, 10–25–17		15,000		14,985
General Mills, Inc.,
1.470%, 10–16–17		10,000		9,994
International Paper Co.:
1.330%, 10–6–17		5,000		4,998
1.500%, 10–11–17		5,000		4,998
J.M. Smucker Co. (The),
1.371%, 10–6–17		20,000		19,995
Kellogg Co.,
1.480%, 10–13–17		5,000		4,997
McCormick & Co., Inc.,
1.341%, 10–4–17		16,000		15,997
Medtronic Global Holdings SCA,
1.231%, 10–2–17		5,000		4,999
Mondelez International, Inc.:
1.382%, 10–2–17		15,000		14,998
1.371%, 10–4–17		20,000		19,996
1.510%, 10–10–17		11,000		10,996
Sysco Corp.,
1.350%, 10–2–17		13,470		13,468
Virginia Electric and Power Co.,
1.570%, 10–11–17		20,000		19,990
Walgreens Boots Alliance, Inc.:
1.360%, 10–5–17		7,000		6,999
1.500%, 10–11–17		14,500		14,493
				224,758

SHORT–TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.2%
Toyota Motor Credit Corp. (1–Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (P)	$	6,661	$	6,661
TOTAL SHORT–TERM SECURITIES – 5.3%			$	231,419
(Cost: $231,439)
TOTAL INVESTMENT SECURITIES –99.0%			$	4,360,458
(Cost: $4,592,049)
CASH AND OTHER ASSETS, NET OF LIABILITIES (Q) – 1.0%				45,019
NET ASSETS – 100.0%			$	4,405,477

2017 SEMIANNUAL REPORT 65

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

* Not shown due to rounding.

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

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

(C) Restricted securities. At September 30, 2017, the Fund owned the following restricted securities:

Security	Acquisition Date(s)		Shares			Cost		Market Value
Larchmont Resources LLC		12-8-16		15		$	4,978	$	4,905
Maritime Finance Co. Ltd.		9-19-13		1,750			30,173		17,640
New Cotai Participation Corp., Class B		4-12-13		—	*		649		354
Pinnacle Agriculture Enterprises LLC		3-10-17		37,029			16,830		23,328
Sabine Oil & Gas Corp.		12-7-16		4			184		192
Sabine Oil & Gas Corp., expires 12-29-29		12-7-16		16			115		103
						$	52,929	$	46,522

The total value of these securities represented 1.0% of net assets at September 30, 2017.

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

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

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

(G)   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 September 30, 2017 the total value of these securities amounted to $2,274,752 or 51.6% of net assets.

(H)   Principal amounts are denominated in the indicated foreign currency, where applicable (EUR—Euro).

(I)   Zero coupon bond.

(J)   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.

(K)   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 September 30, 2017.

(L)   Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

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

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

(O)   Rate shown is the yield to maturity at September 30, 2017.

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

(Q)   Cash of $160 has been pledged as collateral for OTC foreign forward currency contracts.

(R)   Affiliate security.

The following forward foreign currency contracts were outstanding at September 30, 2017:

	Currency to be Delivered		Currency to be Received		Settlement Date	Counterparty		Unrealized Appreciation		Unrealized Depreciation
Canadian Dollar	23,421	U.S. Dollar		18,616	10-5-17		Morgan Stanley International	$	—	$	154
Euro	16,936	U.S. Dollar		20,042	10-5-17		Morgan Stanley International		23		—
								$	23	$	154

66 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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
Consumer Discretionary	$	66,140	$	—	$	354
Energy		10,508		5,097		—
Financials		—		—		17,640
Total Common Stocks	$	76,648	$	5,097	$	17,994
Preferred Stocks		3,762		—		23,328
Warrants		—		230		—	*
Corporate Debt Securities		—		3,079,509		—	*
Loans		—		724,843		197,628
Short-Term Securities		—		231,419		—
Total	$	80,410	$	4,041,098	$	238,950
Forward Foreign Currency Contracts	$	—	$	23	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	154	$	—

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

	Common Stocks			Preferred Stocks		Warrants			Corporate Debt			Loans
Beginning Balance 4—1—17	$	18,574		$	16,830	$	—	*	$	—	*	$	259,431
Net realized gain (loss)		—			—		—			—			1,970
Net change in unrealized appreciation (depreciation)		(580	)		6,498		—			—			(40,045	)
Purchases		—			—		—			—			—
Sales		—			—		—			—			(134,800	)
Amortization/Accretion of premium/discount		—			—		—			—			298
Transfers into Level 3 during the period		—			—		—			—			131,729
Transfers out of Level 3 during the period		—			—		—			—			(20,955	)
Ending Balance 9—30—17	$	17,994		$	23,328	$	—	*	$	—	*	$	197,628
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9—30—17	$	(580	)	$	6,498	$	—		$	—		$	1,682

Transfers from Level 2 to Level 3 occurred primarily due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred primarily due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. During the period ended September 30, 2017, there were no transfers between Levels 1 and 2.

2017 SEMIANNUAL REPORT 67

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Information about Level 3 fair value measurements:

	Fair Value at 9-30-17			Valuation Technique(s)	Unobservable Input(s)	Input value(s)
Assets
Common Stocks	$	354		Market comparable approach	Adjusted revenue multiple		7.53x
					Illiquidity discount		10%
		17,640		Third-party valuation service	Broker quotes		N/A
Preferred Stocks		23,328		Market comparable approach	Adjusted EBITDA multiple		8.52x
Warrants		—	*	Third-party valuation service	Broker quotes		N/A
Corporate Debt		—	*	Third-party valuation service	Broker quotes		N/A
Loans		197,628		Third-party valuation service	Broker quotes		N/A

Significant increases (decreases) in the adjusted revenue multiple and adjusted EBITDA multiple inputs could result in a higher (lower) fair value measurement. However, significant increases (decreases) in the illiquidity discount input could result in a lower (higher) fair value measurement.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

ICE = Intercontinental Exchange

LIBOR = London Interbank Offered Rate

OTC = Over the Counter

PIK = Payment In Kind

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

68 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY INTERNATIONAL CORE EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	95.2%
Financials	17.9%
Industrials	15.8%
Consumer Discretionary	12.1%
Consumer Staples	12.1%
Energy	10.4%
Health Care	7.0%
Information Technology	6.6%
Materials	6.3%
Telecommunication Services	6.0%
Real Estate	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	4.8%

Lipper Rankings

Category: International Large-Cap Core Funds	Rank	Percentile
1 Year	62/93		66
3 Year	27/71		38
5 Year	5/66		8
10 Year	5/49		10

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

Country Weightings

Europe	58.7%
United Kingdom	14.7%
France	13.0%
Germany	11.5%
Switzerland	7.6%
Netherlands	4.4%
Other Europe	7.5%
Pacific Basin	30.3%
Japan	17.3%
China	4.8%
Australia	4.2%
Other Pacific Basin	4.0%
North America	4.0%
Canada	4.0%
South America	2.2%
Cash and Other Assets (Net of Liabilities),and Cash Equivalents+	4.8%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Westpac Banking Corp.	Australia	Financials	Diversified Banks
Total S.A.	France	Energy	Integrated Oil & Gas
Bayer AG	Germany	Health Care	Pharmaceuticals
Koninklijke Ahold Delhaize N.V.	Netherlands	Consumer Staples	Food Retail
Isuzu Motors Ltd.	Japan	Consumer Discretionary	Automobile Manufacturers
Alibaba Group Holding Ltd. ADR	China	Information Technology	Internet Software & Services
Danone S.A.	France	Consumer Staples	Packaged Foods & Meats
Orange S.A.	France	Telecommunication Services	Integrated Telecommunication Services
Nestle S.A., Registered Shares	Switzerland	Consumer Staples	Packaged Foods & Meats
Ferguson plc	Switzerland	Industrials	Trading Companies & Distributors

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 69

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Energy – 1.1%
Oil Search Ltd.		13,524	$	74,259
Financials – 2.7%
Westpac Banking Corp.		7,135		178,654
Industrials – 0.4%
Brambles Ltd.		4,002		28,251
Total Australia – 4.2%				281,164
Brazil
Information Technology – 1.1%
MercadoLibre, Inc.		276		71,574
Telecommunication Services – 1.1%
Telefonica Brasil S.A.		1,920		30,525
Vivo Participacoes S.A. ADR (B)		2,567		40,659
				71,184
Total Brazil – 2.2%				142,758
Canada
Consumer Discretionary – 1.6%
Magna International, Inc.		2,086		111,308
Energy – 2.4%
Seven Generations Energy Ltd., Class A (A)		4,745		75,070
Suncor Energy, Inc.		2,548		89,310
				164,380
Total Canada – 4.0%				275,688
China
Consumer Discretionary – 1.1%
JD.com, Inc. ADR (A)(B)		1,979		75,594
Consumer Staples – 1.1%
Wuliangye Yibin Co. Ltd., A Shares		8,304		71,603
Industrials – 0.7%
China Communications Construction Co. Ltd., H Shares		36,306		45,315
Information Technology – 1.9%
Alibaba Group Holding Ltd. ADR (A)(B)		740		127,857
Total China – 4.8%				320,369
France
Consumer Staples – 1.8%
Danone S.A.		1,603		125,748
Energy – 2.3%
Total S.A.		2,938		157,825

COMMON STOCKS (Continued)	Shares		Value
Financials – 1.4%
Axa S.A.		3,210	$	97,079
Industrials – 4.3%
Airbus SE		1,095		104,038
Schneider Electric S.A.		898		78,112
Vinci		1,173		111,501
				293,651
Materials – 1.4%
L Air Liquide S.A.		734		97,846
Telecommunication Services – 1.8%
Orange S.A.		7,510		123,015
Total France – 13.0%				895,164
Germany
Consumer Discretionary – 2.3%
Continental AG		344		87,311
ProSiebenSat. 1 Media SE		1,900		64,763
				152,074
Financials – 1.4%
Deutsche Boerse AG		883		95,711
Health Care – 4.0%
Bayer AG		1,135		154,625
Fresenius Medical Care AG & Co. KGaA		1,156		113,096
				267,721
Industrials – 1.2%
Siemens AG		581		81,909
Information Technology – 1.3%
SAP AG		847		92,783
Materials – 1.3%
HeidelbergCement AG		840		86,312
Total Germany – 11.5%				776,510
Hong Kong
Financials – 1.3%
AIA Group Ltd.		12,150		89,593
Real Estate – 1.0%
Cheung Kong (Holdings) Ltd.		5,221		66,739
Total Hong Kong – 2.3%				156,332
India
Financials – 0.5%
Axis Bank Ltd.		4,177		32,559
Total India – 0.5%				32,559

COMMON STOCKS (Continued)	Shares		Value
Ireland
Health Care – 1.3%
Shire Pharmaceuticals Group plc ADR (B)		586	$	89,785
Materials – 1.7%
CRH plc		2,678		101,813
James Hardie Industries plc, Class C		850		11,817
				113,630
Total Ireland – 3.0%				203,415
Japan
Consumer Discretionary – 5.7%
Bridgestone Corp.		2,276		103,282
Fuji Heavy Industries Ltd.		3,061		110,451
Isuzu Motors Ltd.		10,462		138,627
Nissin Kogyo Co. Ltd.		1,831		32,755
				385,115
Consumer Staples – 0.7%
Calbee, Inc.		1,388		48,771
Energy – 1.3%
Inpex Corp.		8,496		90,261
Financials – 2.2%
Kabushiki Kaisha Mitsubishi Tokyo Financial Group		11,668		75,770
Tokio Marine Holdings, Inc.		1,934		75,655
				151,425
Industrials – 3.2%
Komatsu Ltd.		2,712		77,148
Seibu Holdings, Inc.		3,710		63,364
SMC Corp.		231		81,479
				221,991
Information Technology – 1.1%
Yahoo Japan Corp.		16,160		76,687
Telecommunication Services – 3.1%
Nippon Telegraph and Telephone Corp.		2,372		108,708
SoftBank Group Corp.		1,314		106,086
				214,794
Total Japan – 17.3%				1,189,044
Luxembourg
Energy – 1.0%
Tenaris S.A.		2,420		34,329
Tenaris S.A. ADR		1,036		29,315
				63,644
Total Luxembourg – 1.0%				63,644

70 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Netherlands
Consumer Staples – 2.1%
Koninklijke Ahold Delhaize N.V.		7,449	$	139,276
Energy – 0.8%
Royal Dutch Petroleum Co., New York Shares (B)		856		51,830
Financials – 1.5%
ING Groep N.V., Certicaaten Van Aandelen		5,332		98,301
Total Netherlands – 4.4%				289,407
Norway
Financials – 1.5%
DNB ASA		5,142		103,623
Total Norway – 1.5%				103,623
South Korea
Information Technology – 1.2%
Samsung Electronics Co. Ltd.		36		81,394
Total South Korea – 1.2%				81,394
Spain
Industrials – 0.5%
ACS Actividades de Construccion y Servicios S.A.		946		35,062
Total Spain – 0.5%				35,062
Sweden
Financials – 1.5%
Swedbank AB		3,756		103,851
Total Sweden – 1.5%				103,851
Switzerland
Consumer Staples – 1.8%
Nestle S.A., Registered Shares		1,429		119,638
Financials – 1.5%
UBS Group AG		5,748		98,242
Health Care – 1.1%
Roche Holdings AG, Genusscheine		289		73,776
Industrials – 3.2%
Adecco S.A.		1,262		98,254
Ferguson plc		1,731		113,578
				211,832
Total Switzerland – 7.6%				503,488

COMMON STOCKS (Continued)	Shares		Value
United Kingdom
Consumer Discretionary – 1.4%
Kingfisher plc		10,520	$	42,080
Whitbread plc		1,145		57,782
				99,862
Consumer Staples – 4.6%
British American Tobacco plc		1,291		80,812
Imperial Tobacco Group plc		1,965		83,844
Reckitt Benckiser Group plc		826		75,372
Unilever plc		1,253		72,509
				312,537
Energy – 1.5%
Royal Dutch Shell plc, Class A		3,388		102,381
Financials – 2.4%
Prudential plc		3,303		79,079
Standard Chartered plc		8,311		82,372
				161,451
Health Care – 0.6%
Shire plc		805		40,846
Industrials – 2.3%
Babcock International Group plc		6,735		74,686
BAE Systems plc		9,232		78,124
				152,810
Materials – 1.9%
Rio Tinto plc		2,056		95,673
Rio Tinto plc ADR (B)		745		35,175
				130,848
Total United Kingdom – 14.7%				1,000,735
TOTAL COMMON STOCKS – 95.2%			$	6,454,207
(Cost: $5,627,209)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 2.6%
BorgWarner, Inc.
1.380%, 10–5–17	$	10,000		9,998
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.)
1.180%, 10–5–17		10,000		9,998
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.)
1.580%, 10–10–17		5,000		4,998
Corporacion Andina de Fomento
1.250%, 10–2–17		1,314		1,314
E.I. du Pont de Nemours and Co.
1.460%, 10–19–17		444		444
Essilor International S.A.
1.240%, 11–14–17		4,000		3,994
General Mills, Inc.
1.470%, 10–16–17		15,000		14,990

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (C) (Continued)
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.)
1.251%, 10–5–17	$	7,495	$	7,493
J.M. Smucker Co. (The)
1.371%, 10–6–17		15,000		14,996
John Deere Canada ULC (GTD by Deere & Co.)
1.190%, 10–23–17		10,000		9,992
Medtronic Global Holdings SCA:
1.231%, 10–2–17		10,000		9,999
1.230%, 10–4–17		1,000		1,000
1.580%, 10–10–17		15,000		14,993
Northern Illinois Gas Co.
1.250%, 10–2–17		4,903		4,902
Rockwell Automation, Inc.:
1.240%, 10–3–17		10,000		9,999
1.200%, 10–5–17		8,000		7,998
Sonoco Products Co.
1.330%, 10–2–17		6,200		6,199
United Technologies Corp.
1.430%, 11–7–17		11,000		10,983
Virginia Electric and Power Co.
1.560%, 10–12–17		10,000		9,995
Walgreens Boots Alliance, Inc.:
1.300%, 10–4–17		4,000		3,999
1.490%, 10–12–17		17,000		16,992
Wisconsin Gas LLC
1.180%, 10–5–17		3,765		3,764
				179,040
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
1.450%, 10–4–17 (D)		4,085		4,085
Municipal Obligations – 0.4%
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.) (BVAL plus 7 bps)
0.890%, 10–7–17 (D)		11,025		11,025
LA Pub Fac Auth, Var Rate Rev Rfdg Bonds (CHRISTUS Hlth), Ser 2009B-1 (GTD by Bank of New York Mellon (The)) (BVAL plus 25 bps)
0.930%, 10–7–17 (D)		4,505		4,505
NY Hsng Fin Agy, Related-Caroline Apt Hsng Rev Bonds, Ser 2008A (GTD by FHLMC) (BVAL plus 17 bps)
1.050%, 10–7–17 (D)		8,900		8,900
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.) (BVAL plus 20 bps)
1.250%, 10–7–17 (D)		3,000		3,000
				27,430

2017 SEMIANNUAL REPORT 71

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

SEPTEMBER 30, 2017 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations – 0.3%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate)
1.130%, 10–7–17 (D)	$	21,800	$	21,800
TOTAL SHORT-TERM SECURITIES – 3.4%			$	232,355
(Cost: $232,371)

	Value
TOTAL INVESTMENT SECURITIES – 98.6%	$	6,686,562
(Cost: $5,859,580)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.4%		92,520
NET ASSETS – 100.0%	$	6,779,082

Notes to Schedule of Investments

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

(B) All or a portion of securities with an aggregate value of $1,535 are held in collateralized accounts for OTC foreign forward currency contracts collateral.

(C) Rate shown is the yield to maturity at September 30, 2017.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 2017:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
U.S. Dollar		126,712	Australian Dollar		159,702	10–5–17	Deutsche Bank AG	$	—	$	1,444
U.S. Dollar		336,878	Japanese Yen		37,941,933	10–5–17	Deutsche Bank AG		342		—
								$	342	$	1,444

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	6,454,207	$	—	$	—
Short-Term Securities		—		232,355		—
Total	$	6,454,207	$	232,355	$	—
Forward Foreign Currency Contracts	$	—	$	342	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	1,444	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are is used throughout this schedule:

ADR = American Depositary Receipts

BVAL = Bloomberg Valuation Municipal AAA Benchmark

FHLMC = Federal Home Loan Mortgage Corp.

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

TB = Treasury Bill

72 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

Market Sector Diversification

(as a % of net assets)
Financials	17.9%
Industrials	15.8%
Consumer Discretionary	12.1%
Consumer Staples	12.1%
Energy	10.4%
Health Care	7.0%
Information Technology	6.6%
Materials	6.3%
Telecommunication Services	6.0%
Real Estate	1.0%
Other+	4.8%

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 73

PORTFOLIO HIGHLIGHTS IVY LARGE CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	96.4%
Information Technology	48.0%
Consumer Discretionary	13.6%
Health Care	11.4%
Industrials	10.4%
Financials	7.1%
Consumer Staples	3.6%
Energy	1.4%
Real Estate	0.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.6%

Lipper Rankings

Category: Large-Cap Growth Funds	Rank	Percentile
1 Year	309/658		47
3 Year	274/592		47
5 Year	214/532		41
10 Year	260/387		68

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

Top 10 Equity Holdings

Company	Sector	Industry
MasterCard, Inc., Class A	Information Technology	Data Processing & Outsourced Services
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
Microsoft Corp.	Information Technology	Systems Software
Home Depot, Inc. (The)	Consumer Discretionary	Home Improvement Retail
Facebook, Inc., Class A	Information Technology	Internet Software & Services
Visa, Inc., Class A	Information Technology	Data Processing & Outsourced Services
Lam Research Corp.	Information Technology	Semiconductor Equipment
Celgene Corp.	Health Care	Biotechnology
PayPal, Inc.	Information Technology	Data Processing & Outsourced Services
Amazon.com, Inc.	Consumer Discretionary	Internet & Direct Marketing Retail

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

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

74 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY LARGE CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Automobile Manufacturers – 2.0%
Ferrari N.V.		340	$	37,562
Cable & Satellite – 1.9%
Comcast Corp., Class A		944		36,340
Home Improvement Retail – 4.1%
Home Depot, Inc. (The)		468		76,628
Internet & Direct Marketing Retail – 5.6%
Amazon.com, Inc. (A)		70		67,495
priceline.com, Inc. (A)		20		36,433
				103,928
Total Consumer Discretionary – 13.6%				254,458
Consumer Staples
Tobacco – 3.6%
Philip Morris International, Inc.		606		67,261
Total Consumer Staples – 3.6%				67,261
Energy
Oil & Gas Equipment & Services – 1.4%
Halliburton Co.		560		25,766
Total Energy – 1.4%				25,766
Financials
Financial Exchanges & Data – 4.8%
CME Group, Inc.		418		56,741
S&P Global, Inc.		211		32,998
				89,739
Investment Banking & Brokerage – 2.3%
Charles Schwab Corp. (The)		993		43,421
Total Financials – 7.1%				133,160
Health Care
Biotechnology – 6.4%
Alexion Pharmaceuticals, Inc. (A)		106		14,814
Celgene Corp. (A)		501		73,025
Vertex Pharmaceuticals, Inc. (A)		213		32,339
				120,178
Health Care Equipment – 4.4%
Danaher Corp.		316		27,141
Edwards Lifesciences Corp. (A)		223		24,349
Intuitive Surgical, Inc. (A)		28		29,598
				81,088
Pharmaceuticals – 0.6%
Bristol-Myers Squibb Co.		180		11,441
Total Health Care – 11.4%				212,707

COMMON STOCKS (Continued)	Shares		Value
Industrials
Aerospace & Defense – 4.5%
Lockheed Martin Corp.		175	$	54,177
Northrop Grumman Corp.		103		29,549
				83,726
Construction Machinery & Heavy Trucks – 2.1%
Caterpillar, Inc.		309		38,560
Electrical Components & Equipment – 0.5%
Rockwell Automation, Inc.		56		9,909
Industrial Machinery – 1.6%
Parker Hannifin Corp.		63		11,044
Stanley Black & Decker, Inc.		129		19,505
				30,549
Railroads – 1.7%
Union Pacific Corp.		267		30,987
Total Industrials – 10.4%				193,731
Information Technology
Application Software – 6.3%
Adobe Systems, Inc. (A)		388		57,837
salesforce.com, Inc. (A)		651		60,770
				118,607
Data Processing & Outsourced Services – 13.0%
FleetCor Technologies, Inc. (A)		82		12,707
MasterCard, Inc., Class A		623		88,024
PayPal, Inc. (A)		1,056		67,590
Visa, Inc., Class A		704		74,110
				242,431
Home Entertainment Software – 2.7%
Electronic Arts, Inc. (A)		420		49,621
Internet Software & Services – 9.2%
Alphabet, Inc., Class A (A)		55		53,555
Alphabet, Inc., Class C (A)		44		42,538
Facebook, Inc., Class A (A)		440		75,234
				171,327
Semiconductor Equipment – 5.2%
Applied Materials, Inc.		440		22,919
Lam Research Corp.		396		73,336
				96,255
Semiconductors – 2.8%
Microchip Technology, Inc.		576		51,718
Systems Software – 4.4%
Microsoft Corp.		1,103		82,148

COMMON STOCKS (Continued)	Shares		Value
Technology Hardware, Storage & Peripherals – 4.4%
Apple, Inc.		538	$	82,867
Total Information Technology – 48.0%				894,974
Real Estate
Specialized REITs – 0.9%
American Tower Corp., Class A		123		16,798
Total Real Estate – 0.9%				16,798
TOTAL COMMON STOCKS – 96.4%			$	1,798,855
(Cost: $1,094,322)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 3.3%
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.):
1.331%, 10–3–17	$	10,000		9,999
1.350%, 10–4–17		8,500		8,498
1.240%, 10–6–17		5,000		4,999
John Deere Canada ULC (GTD by Deere & Co.),
1.190%, 10–23–17		10,000		9,992
Kroger Co. (The),
1.300%, 10–2–17		3,625		3,625
Medtronic Global Holdings SCA,
1.530%, 10–16–17		10,000		9,993
United Technologies Corp.,
1.430%, 11–7–17		9,100		9,086
Virginia Electric and Power Co.,
1.560%, 10–12–17		5,000		4,997
				61,189
Master Note – 0.0%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (C)		2		2
TOTAL SHORT-TERM SECURITIES – 3.3%			$	61,191
(Cost: $61,197)
TOTAL INVESTMENT SECURITIES – 99.7%			$	1,860,046
(Cost: $1,155,519)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3%				5,877
NET ASSETS – 100.0%			$	1,865,923

2017 SEMIANNUAL REPORT 75

SCHEDULE OF INVESTMENTS IVY LARGE CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2017.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	1,798,855	$	—	$	—
Short-Term Securities		—		61,191		—
Total	$	1,798,855	$	61,191	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

76 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY LIMITED-TERM BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Bonds	97.6%
Corporate Debt Securities	72.3%
United States Government and Government Agency Obligations	20.7%
Municipal Bonds – Taxable	2.7%
Asset-Backed Securities	1.3%
Mortgage-Backed Securities	0.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.4%

Lipper Rankings

Category: Short-Intermediate Investment Grade Debt Funds	Rank	Percentile
1 Year	107/176		61
3 Year	93/160		58
5 Year	92/132		70
10 Year	51/82		62

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

Quality Weightings

Investment Grade	94.3%
AAA	1.8%
AA	26.2%
A	28.8%
BBB	37.5%
Non-Investment Grade	3.3%
BB	1.2%
Non-rated	2.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.4%

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. For securities not rated by Moody’s, ratings are obtained from Fitch. 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 77

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

ASSET-BACKED SECURITIES	Principal		Value
American Airlines Class AA Pass Through Certificates, Series 2016-2,
3.200%, 6–15–28	$	4,870	$	4,872
SBA Tower Trust, Series 2013-1C (GTD by SBA Guarantor LLC and SBA Holdings LLC),
2.240%, 4–10–18 (A)		8,035		8,032
SBA Tower Trust, Series 2016-1 (GTD by SBA Guarantor LLC and SBA Holdings LLC),
2.877%, 7–9–21 (A)		5,500		5,573
TOTAL ASSET-BACKED SECURITIES – 1.3%			$	18,477
(Cost: $18,419)
CORPORATE DEBT SECURITIES
Consumer Discretionary
Auto Parts & Equipment – 0.2%
Lear Corp.,
5.375%, 3–15–24		2,675		2,850
Automobile Manufacturers – 1.0%
General Motors Co.,
4.875%, 10–2–23		8,500		9,190
Toyota Motor Credit Corp.,
2.000%, 10–24–18		5,125		5,149
				14,339
Broadcasting – 0.1%
Discovery Communications LLC,
2.200%, 9–20–19		2,000		2,006
Cable & Satellite – 0.6%
Comcast Corp. (GTD by Comcast Cable Communications and NBCUniversal),
1.625%, 1–15–22		3,950		3,849
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc.,
5.875%, 10–1–19		1,000		1,074
Time Warner Co., Inc. (GTD by Time Warner, Inc.),
7.250%, 10–15–17		4,000		4,008
				8,931
General Merchandise Stores – 1.2%
Dollar General Corp.,
1.875%, 4–15–18		3,000		3,003
Family Dollar Stores, Inc.,
5.000%, 2–1–21		12,859		13,791
				16,794
Internet & Direct Marketing Retail – 0.6%
Amazon.com, Inc.,
1.200%, 11–29–17		8,000		7,999
Total Consumer Discretionary – 3.7%				52,919

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Staples
Brewers – 0.3%
Molson Coors Brewing Co.:
1.900%, 3–15–19 (A)	$	2,070	$	2,067
2.250%, 3–15–20 (A)		2,750		2,748
				4,815
Distillers & Vintners – 0.9%
Beam, Inc.,
1.750%, 6–15–18		10,000		9,985
Constellation Brands, Inc.,
2.700%, 5–9–22		2,400		2,408
				12,393
Drug Retail – 0.6%
CVS Health Corp.,
2.250%, 12–5–18		9,000		9,040
Food Retail – 0.4%
Kroger Co. (The),
1.500%, 9–30–19		5,250		5,188
Packaged Foods & Meats – 0.6%
Smithfield Foods, Inc.,
2.700%, 1–31–20 (A)		8,000		8,023
Soft Drinks – 0.1%
PepsiCo, Inc.,
3.100%, 7–17–22		2,082		2,160
Total Consumer Staples – 2.9%				41,619
Energy
Integrated Oil & Gas – 0.2%
Statoil ASA (GTD by Statoil Petroleum AS),
1.950%, 11–8–18		3,500		3,509
Oil & Gas Equipment & Services – 0.6%
Enterprise Products Operating LLC (GTD by Enterprise Products Partners L.P.),
6.500%, 1–31–19		8,250		8,730
Oil & Gas Exploration & Production – 2.3%
Aker BP ASA,
6.000%, 7–1–22 (A)		2,360		2,454
BP Capital Markets plc (GTD by BP plc),
1.674%, 2–13–18		13,500		13,510
EQT Corp.:
8.125%, 6–1–19		11,520		12,640
2.500%, 10–1–20		4,000		4,014
				32,618
Oil & Gas Storage & Transportation – 2.2%
Enbridge, Inc.,
2.900%, 7–15–22		1,500		1,508
Kinder Morgan Energy Partners L.P.:
3.500%, 3–1–21		6,000		6,147
3.450%, 2–15–23		6,590		6,662

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Storage & Transportation (Continued)
Plains All American Pipeline L.P. and PAA Finance Corp.:
8.750%, 5–1–19	$	1,000	$	1,093
3.850%, 10–15–23		8,200		8,229
Spectra Energy Partners L.P.,
2.950%, 9–25–18		2,000		2,020
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.),
4.400%, 4–1–21		5,700		6,012
				31,671
Total Energy – 5.3%				76,528
Financials
Asset Management & Custody Banks – 0.5%
Ares Capital Corp.,
3.875%, 1–15–20		7,280		7,463
Consumer Finance – 6.3%
Ally Financial, Inc.,
4.125%, 3–30–20		5,260		5,418
American Express Co.,
7.000%, 3–19–18		10,000		10,246
American Honda Finance Corp.,
7.625%, 10–1–18 (A)		5,000		5,295
Discover Financial Services,
3.950%, 11–6–24		8,650		8,852
Ford Motor Credit Co. LLC:
5.000%, 5–15–18		10,000		10,197
2.681%, 1–9–20		3,700		3,732
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.):
2.400%, 5–9–19		5,115		5,137
3.500%, 7–10–19		4,500		4,608
3.200%, 7–6–21		6,500		6,613
Hyundai Capital America,
2.875%, 8–9–18 (A)		5,525		5,554
Synchrony Financial,
2.600%, 1–15–19		15,770		15,870
Synchrony Financial (3-Month U.S. LIBOR plus 140 bps),
2.711%, 11–9–17 (B)		9,850		9,860
				91,382
Diversified Banks – 9.4%
ABN AMRO Bank N.V.,
2.100%, 1–18–19 (A)		8,000		8,025
Bank of America Corp.:
2.625%, 4–19–21		3,500		3,526
3.124%, 1–20–23		12,000		12,184
4.100%, 7–24–23		6,850		7,291
Bank of New York Mellon Corp. (The),
2.300%, 9–11–19		12,750		12,847
BB&T Corp.,
2.050%, 5–10–21		6,500		6,472
Branch Banking and Trust Co.,
1.450%, 5–10–19		10,875		10,812

78 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Banks (Continued)
KeyBank N.A.,
2.300%, 9–14–22	$	7,000	$	6,934
Mitsubishi UFJ Financial Group, Inc.,
2.998%, 2–22–22		2,000		2,027
Mizuho Financial Group, Inc.,
2.273%, 9–13–21		9,400		9,256
Northern Trust Corp.,
2.375%, 8–2–22		18,875		18,978
Northgroup Preferred Capital Corp.,
6.378%, 10–15–65 (A)		13,710		13,743
Wachovia Corp.,
5.750%, 2–1–18		13,500		13,687
Wells Fargo & Co.:
3.069%, 1–24–23		6,500		6,610
3.000%, 2–19–25		4,000		3,970
				136,362
Investment Banking & Brokerage – 4.1%
Daiwa Securities Group, Inc.,
3.129%, 4–19–22 (A)		12,000		12,133
Goldman Sachs Group, Inc. (The):
2.600%, 12–27–20		16,000		16,119
2.350%, 11–15–21		6,700		6,648
3.000%, 4–26–22		4,000		4,044
4.000%, 3–3–24		4,552		4,805
Morgan Stanley:
5.750%, 1–25–21		6,000		6,624
2.500%, 4–21–21		4,000		4,012
2.750%, 5–19–22		3,000		3,011
Morgan Stanley (3-Month U.S. LIBOR plus 110 bps),
3.000%, 5–31–23 (B)		1,700		1,716
				59,112
Life & Health Insurance – 2.3%
Athene Global Funding:
2.875%, 10–23–18 (A)		15,450		15,596
2.750%, 4–20–20 (A)		1,000		1,008
New York Life Global Funding,
1.550%, 11–2–18 (A)		6,500		6,493
Principal Life Global Funding II,
2.625%, 11–19–20 (A)		9,500		9,591
				32,688
Other Diversified Financial Services – 3.9%
Citigroup, Inc.:
2.650%, 10–26–20		9,000		9,091
2.700%, 3–30–21		5,893		5,957
Fidelity National Information Services, Inc.,
2.850%, 10–15–18		5,000		5,058
JPMorgan Chase & Co.:
4.350%, 8–15–21		3,820		4,091
2.972%, 1–15–23		15,500		15,735
3.000%, 2–27–30 (C)		3,390		3,254
USAA Capital Corp.,
2.450%, 8–1–20 (A)		13,865		13,974
				57,160

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Property & Casualty Insurance – 2.1%
ACE INA Holdings, Inc. (GTD by ACE Ltd.),
2.300%, 11–3–20	$	10,500	$	10,575
Berkshire Hathaway Finance Corp. (GTD by Berkshire Hathaway, Inc.),
1.700%, 3–15–19		4,550		4,559
Berkshire Hathaway, Inc.:
2.100%, 8–14–19		7,375		7,446
2.750%, 3–15–23		8,260		8,382
				30,962
Regional Banks – 1.7%
PNC Bank N.A.:
2.400%, 10–18–19		8,985		9,062
2.550%, 12–9–21		4,000		4,032
PNC Funding Corp. (GTD by PNC Financial Services Group, Inc.),
6.700%, 6–10–19		3,500		3,775
Sumitomo Mitsui Trust Bank Ltd.,
2.050%, 3–6–19 (A)		7,500		7,506
				24,375
Specialized Finance – 1.9%
ADOP Co.,
6.625%, 10–1–17 (A)		4,000		4,000
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.,
3.480%, 6–1–19 (A)		10,625		10,828
International Lease Finance Corp.,
6.250%, 5–15–19		11,500		12,222
				27,050
Total Financials – 32.2%				466,554
Health Care
Biotechnology – 0.3%
Amgen, Inc.,
2.200%, 5–11–20		4,000		4,012
Health Care Services – 0.2%
Cardinal Health, Inc.,
1.948%, 6–14–19		3,550		3,553
Health Care Supplies – 1.4%
Abbott Laboratories,
2.350%, 11–22–19		5,000		5,040
Catholic Health Initiatives,
2.600%, 8–1–18		11,871		11,956
Stryker Corp.,
2.625%, 3–15–21		3,025		3,060
				20,056
Managed Health Care – 0.8%
Aetna, Inc.,
1.500%, 11–15–17		11,500		11,498
Pharmaceuticals – 0.5%
AbbVie, Inc.,
2.000%, 11–6–18		2,000		2,007

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Pharmaceuticals (Continued)
Merck & Co., Inc.,
1.100%, 1–31–18	$	4,925	$	4,923
				6,930
Total Health Care – 3.2%				46,049
Industrials
Aerospace & Defense – 1.5%
BAE Systems Holdings, Inc.:
6.375%, 6–1–19 (A)		10,893		11,648
3.850%, 12–15–25 (A)		5,500		5,703
Exelis, Inc.,
5.550%, 10–1–21		2,566		2,840
Northrop Grumman Corp.,
3.250%, 8–1–23		2,000		2,061
				22,252
Airlines – 1.2%
Aviation Capital Group Corp.:
2.875%, 9–17–18 (A)		7,500		7,564
2.875%, 1–20–22 (A)		4,000		3,999
Southwest Airlines Co.,
2.650%, 11–5–20		6,000		6,079
				17,642
Environmental & Facilities Services – 2.1%
Republic Services, Inc.,
3.800%, 5–15–18		14,690		14,874
Waste Management, Inc. (GTD by Waste Management Holdings, Inc.):
6.100%, 3–15–18		10,000		10,197
4.750%, 6–30–20		1,675		1,794
7.100%, 8–1–26		2,450		3,180
				30,045
Industrial Conglomerates – 1.1%
General Electric Capital Corp.:
2.500%, 3–28–20		3,150		3,182
5.012%, 1–1–24		12,060		12,621
				15,803
Total Industrials – 5.9%				85,742
Information Technology
Communications Equipment – 1.2%
Cisco Systems, Inc.,
2.200%, 2–28–21		5,425		5,452
Harris Corp.:
1.999%, 4–27–18		3,105		3,111
2.700%, 4–27–20		1,094		1,105
L-3 Communications Corp.:
3.950%, 5–28–24		4,280		4,469
3.850%, 12–15–26		2,750		2,852
				16,989
Data Processing & Outsourced Services – 1.9%
Alliance Data Systems Corp.:
5.250%, 12–1–17 (A)		6,600		6,623
6.375%, 4–1–20 (A)		6,000		6,075

2017 SEMIANNUAL REPORT 79

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Data Processing & Outsourced Services (Continued)
Visa, Inc.,
2.800%, 12–14–22	$	14,100	$	14,428
				27,126
Electronic Manufacturing Services – 0.4%
Jabil Circuit, Inc.,
8.250%, 3–15–18		5,680		5,819
Home Entertainment Software – 0.3%
Activision Blizzard, Inc.,
2.300%, 9–15–21		4,000		3,977
Semiconductors – 2.4%
Broadcom Corp. and Broadcom Cayman Finance Ltd. (GTD by Broadcom Ltd.),
2.375%, 1–15–20 (A)		5,500		5,530
Intel Corp.:
1.850%, 5–11–20		3,600		3,607
2.450%, 7–29–20		4,000		4,075
2.875%, 5–11–24		10,975		11,108
QUALCOMM, Inc.:
2.100%, 5–20–20		2,000		2,015
2.900%, 5–20–24		8,000		8,028
3.250%, 5–20–27		1,000		1,008
				35,371
Systems Software – 2.0%
CA, Inc.,
5.375%, 12–1–19		8,297		8,822
Microsoft Corp.:
2.000%, 11–3–20		8,000		8,046
2.875%, 2–6–24		12,750		13,042
				29,910
Technology Hardware, Storage & Peripherals – 1.5%
Apple, Inc.:
1.550%, 2–7–20		13,175		13,108
2.500%, 2–9–22		8,500		8,610
				21,718
Total Information Technology – 9.7%				140,910
Materials
Diversified Chemicals – 0.5%
Dow Chemical Co. (The),
4.250%, 11–15–20		7,049		7,442
Diversified Metals & Mining – 0.5%
Glencore Finance Canada Ltd.,
2.700%, 10–25–17 (A)(C)		7,682		7,685
Specialty Chemicals – 0.6%
Methanex Corp.,
3.250%, 12–15–19		8,632		8,710
Total Materials – 1.6%				23,837

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Real Estate
Specialized REITs – 0.7%
Crown Castle International Corp.:
2.250%, 9–1–21	$	3,000	$	2,958
4.875%, 4–15–22		3,099		3,372
5.250%, 1–15–23		2,745		3,038
				9,368
Total Real Estate – 0.7%				9,368
Telecommunication Services
Integrated Telecommunication Services – 1.0%
AT&T, Inc.:
5.875%, 10–1–19		3,900		4,190
5.200%, 3–15–20		3,000		3,214
3.400%, 8–14–24		7,265		7,273
				14,677
Wireless Telecommunication Service – 2.3%
American Tower Corp.:
3.300%, 2–15–21		2,500		2,561
5.900%, 11–1–21		12,200		13,684
2.250%, 1–15–22		12,500		12,294
Crown Castle Towers LLC,
3.222%, 5–15–22 (A)		4,830		4,924
				33,463
Total Telecommunication Services – 3.3%				48,140
Utilities
Electric Utilities – 3.0%
CenterPoint Energy, Inc.,
2.500%, 9–1–22		4,000		3,996
Edison International,
2.125%, 4–15–20		3,060		3,060
Emera U.S. Finance L.P. (GTD by Emera U.S. Holdings, Inc.),
2.150%, 6–15–19		4,000		4,001
Entergy Mississippi, Inc.,
2.850%, 6–1–28		5,875		5,667
Entergy Texas, Inc.,
2.550%, 6–1–21		7,225		7,171
MidAmerican Energy Co.,
3.700%, 9–15–23		4,500		4,749
National Rural Utilities Cooperative Finance Corp.:
1.650%, 2–8–19		3,600		3,594
2.400%, 4–25–22		7,975		8,022
Virginia Electric and Power Co., Series C,
2.750%, 3–15–23		3,940		3,984
				44,244
Multi-Utilities – 0.8%
Dominion Resources, Inc.,
6.400%, 6–15–18		11,118		11,470
Total Utilities – 3.8%				55,714

CORPORATE DEBT SECURITIES (Continued)			Value
TOTAL CORPORATE DEBT SECURITIES – 72.3%			$	1,047,380
(Cost: $1,039,853)
MORTGAGE-BACKED SECURITIES	Principal
Non-Agency REMIC/CMO – 0.5%
Bear Stearns Deutsche Bank Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-AFR1, Class C,
5.097%, 9–15–27 (A)	$	2,500		2,652
CFCRE Commercial Mortgage Trust, Series 2015-RUM, Class B (1-Month U.S. LIBOR plus 215 bps),
3.377%, 7–15–30 (A)(B)		3,942		3,875
				6,527
Other – 0.1%
DLJ Commercial Mortgage Corp., Series 1998-CG1, Class B6,
6.300%, 6–10–31 (A)		1,374		1,377
TOTAL MORTGAGE-BACKED SECURITIES – 0.6%			$	7,904
(Cost: $8,055)
MUNICIPAL BONDS – TAXABLE
California – 1.7%
Alameda Corridor Trans Auth, Taxable Sr Lien Rev Bonds, Ser 1999C,
6.500%, 10–1–19		5,570		5,819
CA Various Purp GO Bonds,
7.700%, 11–1–30		10,050		11,672
The Regents of the Univ of CA, Gen Rev Bonds, Ser 2013AH,
1.796%, 7–1–19		7,615		7,623
				25,114
New York – 0.7%
NYC GO Bonds, Fiscal 2017 Ser A-2,
2.460%, 8–1–26		9,920		9,533
Texas – 0.3%
Katy Independent Sch Dist (Fort Bend, Harris and Waller Cntys, TX), Unlimited Tax Sch Bldg Bonds, Ser 2010D,
6.349%, 2–15–41		4,540		4,941
TOTAL MUNICIPAL BONDS – TAXABLE – 2.7%			$	39,588
(Cost: $40,304)

80 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS	Principal		Value
Agency Obligations – 2.0%
Federal Home Loan Bank:
2.500%, 4–27–26	$	9,155	$	8,910
1.700%, 7–25–31		13,500		13,246
2.000%, 11–25–31		1,000		969
U.S. Department of Transportation,
6.001%, 12–7–21 (A)		5,000		5,785
				28,910
Mortgage-Backed Obligations – 14.9%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Year U.S. Treasury index plus 400 bps),
5.045%, 7–25–44 (A)(B)		5,870		5,957
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (5-Year U.S. Treasury index plus 300 bps),
5.341%, 2–25–47 (A)(B)		6,420		6,936
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 1-Month U.S. LIBOR):
4.482%, 6–25–21 (A)(B)		3,115		3,148
5.237%, 9–25–22 (A)(B)		2,273		2,319
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 1-year U.S. Treasury index),
4.301%, 9–25–44 (A)(B)		8,200		8,339
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 2-year U.S. Treasury index),
3.883%, 2–25–45 (A)(B)		8,500		8,650
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 3-year U.S. Treasury index):
5.685%, 4–25–20 (A)(B)		4,950		5,298
4.493%, 1–25–46 (A)(B)		5,958		6,274
4.120%, 2–25–46 (A)(B)		390		406
4.573%, 12–25–48 (A)(B)		18,196		19,132
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 5-year U.S. Treasury index):
3.668%, 2–25–22 (A)(B)		4,000		4,039
5.116%, 8–25–44 (A)(B)		6,990		7,512
4.490%, 12–25–44 (A)(B)		17,000		18,042

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
4.005%, 5–25–45 (A)(B)	$	6,500	$	6,738
3.617%, 8–25–46 (A)(B)		2,250		2,292
4.752%, 11–25–46 (A)(B)		8,000		8,562
3.681%, 11–25–47 (A)(B)		2,050		2,061
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 6-month U.S. Treasury index),
4.271%, 7–25–48 (A)(B)		5,200		5,200
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates:
5.500%, 4–1–20		195		200
3.000%, 9–1–28		8,751		8,977
3.000%, 5–15–44		2,900		2,950
Federal National Mortgage Association Agency REMIC/CMO:
5.500%, 12–25–17		10		10
2.000%, 6–25–39		14,810		14,797
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
4.503%, 12–1–19		7,296		7,615
4.646%, 7–1–20		6,213		6,494
4.381%, 6–1–21		13,869		14,824
5.500%, 2–1–22		496		517
3.500%, 8–1–26		3,923		4,099
2.000%, 10–25–41		13,269		13,025
2.000%, 12–25–42		1,926		1,933
2.500%, 7–25–45		2,651		2,635
2.500%, 9–25–45		4,255		4,216
Government National Mortgage Association Agency REMIC/CMO,
2.000%, 3–16–42		6,674		6,607
Government National Mortgage Association Fixed Rate Pass-Through Certificates,
3.500%, 4–20–34		6,411		6,571
				216,375
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 16.9%			$	245,285
(Cost: $247,439)

UNITED STATES GOVERNMENT OBLIGATIONS	Principal		Value
Treasury Obligations – 3.8%
U.S. Treasury Notes:
2.750%, 2–28–18	$	35,000	$	35,221
1.375%, 8–31–20		20,000		19,859
				55,080
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 3.8%			$	55,080
(Cost: $55,195)
SHORT-TERM SECURITIES
Commercial Paper (D) – 1.9%
Army & Air Force Exchange Service,
1.200%, 10–11–17		13,000		12,995
BorgWarner, Inc.,
1.380%, 10–5–17		3,000		2,999
E.I. du Pont de Nemours and Co.,
1.361%, 10–4–17		5,000		4,999
Sonoco Products Co.,
1.330%, 10–2–17		6,243		6,243
				27,236
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (E)		1,919		1,919
TOTAL SHORT-TERM SECURITIES – 2.0%			$	29,155
(Cost: $29,157)
TOTAL INVESTMENT SECURITIES – 99.6%			$	1,442,869
(Cost: $1,438,422)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.4%				6,308
NET ASSETS – 100.0%			$	1,449,177

Notes to Schedule of Investments

(A) 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 September 30, 2017 the total value of these securities amounted to $336,988 or 23.3% of net assets.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

(C) 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 September 30, 2017.

(D) Rate shown is the yield to maturity at September 30, 2017.

2017 SEMIANNUAL REPORT 81

SCHEDULE OF INVESTMENTS IVY LIMITED-TERM BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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
Asset-Backed Securities	$	—	$	18,477	$	—
Corporate Debt Securities		—		1,047,380		—
Mortgage-Backed Securities		—		7,904		—
Municipal Bonds		—		39,588		—
United States Government Agency Obligations		—		245,285		—
United States Government Obligations		—		55,080		—
Short-Term Securities		—		29,155		—
Total	$	—	$	1,442,869	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

REMIC = Real Estate Mortgage Investment Conduit

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

82 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Ivy International Core Equity Fund, Class N	41.6	%
Ivy Emerging Markets Equity Fund, Class N	18.3	%
Ivy European Opportunities Fund, Class N	15.5	%
Ivy Global Income Allocation Fund, Class N	14.5	%
Ivy Global Growth Fund, Class N	10.0	%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.1	%

The percentages of investments in the underlying funds may not currently be within the target allocation ranges disclosed in the Fund’s prospectus due to market movements; these percentages are expected to change over time, and deviation from the target allocation ranges due to market movements is permitted by the prospectus.

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

2017 SEMIANNUAL REPORT 83

SCHEDULE OF INVESTMENTS IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy Emerging Markets Equity Fund, Class N (A)		1,818	$	37,751
Ivy European Opportunities Fund, Class N		963		32,013
Ivy Global Growth Fund, Class N (A)		427		20,550
Ivy Global Income Allocation Fund, Class N		1,943		29,968
Ivy International Core Equity Fund, Class N		4,333		85,927
TOTAL AFFILIATED MUTUAL FUNDS – 99.9%			$	206,209
(Cost: $167,646)

SHORT-TERM SECURITIES	Principal		Value
Master Note — 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10-4-17 (B)	$	261	$	261
TOTAL SHORT-TERM SECURITIES – 0.1%			$	261
(Cost: $261)
TOTAL INVESTMENT SECURITIES – 100.0%			$	206,470
(Cost: $167,907)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.0%				43
NET ASSETS – 100.0%			$	206,513

Notes to Schedule of Investments

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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
Affiliated Mutual Funds	$	206,209	$	—	$	—
Short-Term Securities		—		261		—
Total	$	206,209	$	261	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronym is used throughout this schedule:

LIBOR = London Interbank Offered Rate

See Accompanying Notes to Financial Statements.

84 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY MICRO CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	93.3%
Health Care	30.6%
Information Technology	28.7%
Industrials	12.4%
Consumer Discretionary	9.1%
Energy	6.3%
Real Estate	2.8%
Consumer Staples	2.3%
Financials	1.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	6.7%

Lipper Rankings

Category: Small-Cap Growth Funds	Rank	Percentile
1 Year	535/550		98
3 Year	443/493		90
5 Year	411/448		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.

Top 10 Equity Holdings

Company	Sector	Industry
Aerie Pharmaceuticals, Inc.	Health Care	Pharmaceuticals
8x8, Inc.	Information Technology	Application Software
Mimecast Ltd.	Information Technology	Internet Software & Services
MYR Group, Inc.	Industrials	Construction & Engineering
Tactile Systems Technology, Inc.	Health Care	Health Care Equipment
Mercury Computer Systems, Inc.	Industrials	Aerospace & Defense
K2M Group Holdings, Inc.	Health Care	Health Care Equipment
Q2 Holdings, Inc.	Information Technology	Internet Software & Services
Nautilus Group, Inc. (The)	Consumer Discretionary	Leisure Products
Community Healthcare Trust, Inc.	Real Estate	Health Care REITs

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

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

2017 SEMIANNUAL REPORT 85

SCHEDULE OF INVESTMENTS IVY MICRO CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 2.8%
Motorcar Parts of America, Inc. (A)		154	$	4,522
Home Improvement Retail – 2.1%
Tile Shop Holdings, Inc.		266		3,384
Leisure Products – 2.8%
Nautilus Group, Inc. (The) (A)		275		4,644
Specialty Stores – 1.4%
Sportsman’s Warehouse Holdings, Inc. (A)		528		2,381
Total Consumer Discretionary – 9.1%				14,931
Consumer Staples
Distillers & Vintners – 1.8%
MGP Ingredients, Inc.		49		2,960
Packaged Foods & Meats – 0.5%
Inventure Foods, Inc. (A)		176		825
Total Consumer Staples – 2.3%				3,785
Energy
Oil & Gas Equipment & Services – 3.6%
Natural Gas Services Group, Inc. (A)		67		1,913
NCS Multistage Holdings, Inc. (A)		73		1,750
Ranger Energy Services, Inc. (A)		158		2,317
				5,980
Oil & Gas Exploration & Production – 2.7%
Earthstone Energy, Inc. (A)		92		1,010
Ring Energy, Inc. (A)		236		3,420
				4,430
Total Energy – 6.3%				10,410
Financials
Regional Banks – 1.1%
State Bank Financial Corp.		63		1,796
Total Financials – 1.1%				1,796
Health Care
Biotechnology – 1.2%
Natera, Inc. (A)		150		1,940
Health Care Distributors – 2.3%
PetIQ, Inc. (A)		141		3,805
Health Care Equipment – 13.7%
AxoGen, Inc. (A)		226		4,375
Entellus Medical, Inc. (A)		209		3,852
K2M Group Holdings, Inc. (A)		229		4,855
Obalon Therapeutics, Inc. (A)		166		1,583
Oxford Immunotec Global plc (A)		160		2,688

COMMON STOCKS (Continued)	Shares		Value
Health Care Equipment (Continued)
Tactile Systems Technology, Inc. (A)		166	$	5,129
				22,482
Health Care Services – 1.4%
Teladoc, Inc. (A)		69		2,300
Health Care Technology – 5.0%
Evolent Health, Inc., Class A (A)		178		3,174
Omnicell, Inc. (A)		48		2,457
Tabula Rasa HealthCare, Inc. (A)		99		2,658
				8,289
Pharmaceuticals – 7.0%
Aerie Pharmaceuticals, Inc. (A)		140		6,818
Intersect ENT, Inc. (A)		115		3,579
Revance Therapeutics, Inc. (A)		44		1,218
				11,615
Total Health Care – 30.6%				50,431
Industrials
Aerospace & Defense – 3.1%
Mercury Computer Systems, Inc. (A)		98		5,105
Building Products – 3.6%
American Woodmark Corp. (A)		30		2,859
PGT Innovations, Inc. (A)		207		3,093
				5,952
Construction & Engineering – 3.1%
MYR Group, Inc. (A)		177		5,153
Industrial Machinery – 2.6%
Kornit Digital Ltd. (A)		274		4,195
Total Industrials – 12.4%				20,405
Information Technology
Application Software – 4.0%
8x8, Inc. (A)		489		6,607
Communications Equipment – 1.9%
Oclaro, Inc. (A)		363		3,136
Internet Software & Services – 15.5%
Cornerstone OnDemand, Inc. (A)		111		4,491
Five9, Inc. (A)		125		2,995
GTT Communications, Inc. (A)		120		3,811
Mimecast Ltd. (A)		219		6,225
Q2 Holdings, Inc. (A)		113		4,685
SPS Commerce, Inc. (A)		58		3,289
				25,496
Semiconductor Equipment – 4.6%
Aehr Test Systems (A)		293		1,200
Ichor Holdings Ltd. (A)		91		2,444
PDF Solutions, Inc. (A)		253		3,918
				7,562

COMMON STOCKS (Continued)	Shares		Value
Semiconductors – 2.1%
NVE Corp.		44	$	3,467
Systems Software – 0.6%
Rapid7, Inc. (A)		50		884
Total Information Technology – 28.7%				47,152
Real Estate
Health Care REITs – 2.8%
Community Healthcare Trust, Inc.		168		4,536
Total Real Estate – 2.8%				4,536
TOTAL COMMON STOCKS – 93.3%			$	153,446
(Cost: $106,129)
SHORT-TERM SECURITIES		Principal
Commercial Paper (B) – 3.8%
Sonoco Products Co.,
1.330%, 10–2–17	$	6,225		6,224
Master Note – 3.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10-4-17 (C)		5,127		5,127
TOTAL SHORT-TERM SECURITIES – 6.9%			$	11,351
(Cost: $11,352)
TOTAL INVESTMENT SECURITIES – 100.2%			$	164,797
(Cost: $117,481)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)%				(292	)
NET ASSETS – 100.0%			$	164,505

86 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY MICRO CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2017.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	153,446	$	—	$	—
Short-Term Securities		—		11,351		—
Total	$	153,446	$	11,351	$	—

During the period ended September 30, 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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 87

PORTFOLIO HIGHLIGHTS IVY MID CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	99.0%
Information Technology	28.4%
Consumer Discretionary	19.3%
Health Care	17.4%
Industrials	15.3%
Financials	8.8%
Consumer Staples	5.4%
Energy	2.3%
Materials	2.1%
Purchased Options	0.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Lipper Rankings

Category: Mid-Cap Growth Funds	Rank	Percentile
1 Year	188/376		50
3 Year	272/356		77
5 Year	246/309		80
10 Year	45/225		20

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

Top 10 Equity Holdings

Company	Sector	Industry
Intuitive Surgical, Inc.	Health Care	Health Care Equipment
Zoetis, Inc.	Health Care	Pharmaceuticals
Fastenal Co.	Industrials	Trading Companies & Distributors
CoStar Group, Inc.	Information Technology	Internet Software & Services
Electronic Arts, Inc.	Information Technology	Home Entertainment Software
Polaris Industries, Inc.	Consumer Discretionary	Leisure Products
CME Group, Inc.	Financials	Financial Exchanges & Data
BorgWarner, Inc.	Consumer Discretionary	Auto Parts & Equipment
ServiceNow, Inc.	Information Technology	Systems Software
Tractor Supply Co.	Consumer Discretionary	Specialty Stores

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

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

88 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY MID CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel, Accessories & Luxury Goods – 3.7%
Burberry Group plc (A)		1,657	$	39,070
lululemon athletica, Inc. (B)		668		41,563
Under Armour, Inc., Class C (B)		340		5,109
				85,742
Auto Parts & Equipment – 2.4%
BorgWarner, Inc.		1,113		56,995
Homefurnishing Retail – 1.4%
Williams-Sonoma, Inc.		638		31,819
Hotels, Resorts & Cruise Lines – 1.3%
Norwegian Cruise Line Holdings Ltd. (B)		582		31,458
Internet & Direct Marketing Retail – 0.4%
Duluth Holdings, Inc., Class B (B)		442		8,976
Leisure Products – 2.7%
Polaris Industries, Inc.		598		62,521
Restaurants – 2.8%
Chipotle Mexican Grill, Inc., Class A (B)		69		21,120
Dunkin’ Brands Group, Inc.		835		44,324
				65,444
Specialty Stores – 4.6%
Tiffany & Co.		578		53,040
Tractor Supply Co.		877		55,531
				108,571
Total Consumer Discretionary – 19.3%				451,526
Consumer Staples
Food Retail – 1.0%
Sprouts Farmers Market, Inc. (B)		1,240		23,269
Packaged Foods & Meats – 4.4%
Blue Buffalo Pet Products, Inc. (B)		1,067		30,239
Hain Celestial Group, Inc. (The) (B)		769		31,628
Hershey Foods Corp.		133		14,467
Lance, Inc.		714		27,236
				103,570
Total Consumer Staples – 5.4%				126,839
Energy
Oil & Gas Exploration & Production – 2.3%
Cabot Oil & Gas Corp.		991		26,504
Cimarex Energy Co.		236		26,780
				53,284
Total Energy – 2.3%				53,284
Financials
Asset Management & Custody Banks – 1.1%
Oaktree Capital Group LLC		526		24,760

COMMON STOCKS	Shares		Value
Diversified Banks – 1.2%
Northern Trust Corp.		314	$	28,851
Financial Exchanges & Data – 3.4%
CME Group, Inc.		439		59,604
MarketAxess Holdings, Inc.		111		20,512
				80,116
Regional Banks – 3.1%
First Republic Bank		448		46,806
Signature Bank (B)		201		25,764
				72,570
Total Financials – 8.8%				206,297
Health Care
Biotechnology – 3.2%
ACADIA Pharmaceuticals, Inc. (B)		1,035		39,006
BioMarin Pharmaceutical, Inc. (B)		393		36,568
				75,574
Health Care Equipment – 6.4%
Abiomed, Inc. (B)		74		12,421
Edwards Lifesciences Corp. (B)		466		50,926
Intuitive Surgical, Inc. (B)		82		85,667
				149,014
Health Care Services – 1.4%
Laboratory Corp. of America Holdings (B)		223		33,630
Health Care Supplies – 1.5%
Align Technology, Inc. (B)		190		35,348
Pharmaceuticals – 4.9%
Jazz Pharmaceuticals plc (B)		160		23,349
Pacira Pharmaceuticals, Inc. (B)		338		12,681
Zoetis, Inc.		1,230		78,417
				114,447
Total Health Care – 17.4%				408,013
Industrials
Air Freight & Logistics – 2.1%
Expeditors International of Washington, Inc.		827		49,522
Building Products – 4.1%
A. O. Smith Corp.		559		33,203
Allegion plc		331		28,606
Fortune Brands Home & Security, Inc.		514		34,561
				96,370
Construction Machinery & Heavy Trucks – 2.2%
WABCO Holdings, Inc. (B)		179		26,504
Westinghouse Air Brake Technologies Corp.		341		25,866
				52,370
Industrial Machinery – 1.9%
IDEX Corp.		373		45,314

COMMON STOCKS	Shares		Value
Railroads – 0.3%
Kansas City Southern		54	$	5,922
Research & Consulting Services – 1.4%
TransUnion (B)		669		31,618
Trading Companies & Distributors – 3.3%
Fastenal Co.		1,689		76,968
Total Industrials – 15.3%				358,084
Information Technology
Application Software – 3.0%
Ellie Mae, Inc. (B)		211		17,366
Guidewire Software, Inc. (B)		469		36,518
Tyler Technologies, Inc. (B)		94		16,410
				70,294
Communications Equipment – 2.7%
Arista Networks, Inc. (B)		145		27,424
Harris Corp.		268		35,275
				62,699
Data Processing & Outsourced Services – 1.2%
Square, Inc., Class A (B)		941		27,108
Electronic Components – 1.4%
Maxim Integrated Products, Inc.		687		32,789
Electronic Manufacturing Services – 2.3%
Trimble Navigation Ltd. (B)		1,369		53,728
Home Entertainment Software – 2.9%
Electronic Arts, Inc. (B)		575		67,866
Internet Software & Services – 8.5%
CoStar Group, Inc. (B)		253		67,893
GrubHub, Inc. (B)		1,019		53,639
MercadoLibre, Inc.		197		50,992
Pandora Media, Inc. (B)		3,604		27,749
				200,273
Semiconductors – 2.0%
Microchip Technology, Inc.		527		47,334
Systems Software – 4.4%
Red Hat, Inc. (B)		428		47,420
ServiceNow, Inc. (B)		473		55,533
				102,953
Total Information Technology – 28.4%				665,044
Materials
Fertilizers & Agricultural Chemicals – 1.0%
Scotts Miracle-Gro Co. (The)		249		24,242
Specialty Chemicals – 1.1%
Axalta Coating Systems Ltd. (B)		868		25,105
Total Materials – 2.1%				49,347
TOTAL COMMON STOCKS – 99.0%			$	2,318,434
(Cost: $1,687,185)

2017 SEMIANNUAL REPORT 89

SCHEDULE OF INVESTMENTS IVY MID CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Notional Amount		Value
Kansas City Southern,
Call $115.00, Expires 12–15–17, OTC (Ctrpty: UBS AG)		339		34	$	59
Russell 2000 Index, Put $1,450.00, Expires 11–17–17		907		91		1,302
SPDR S&P Midcap 400 ETF Trust, Put $320.00, Expires 11–17–17, OTC (Ctrpty: Citibank N.A.)		7,735		773		2,185
TOTAL PURCHASED OPTIONS – 0.1%					$	3,546
(Cost: $3,481)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (C) – 1.2%
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.),
1.580%, 10–10–17	$	7,000	$	6,997
General Mills, Inc.,
1.510%, 10–10–17		4,000		3,998
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.),
1.490%, 10–12–17		5,000		4,998
J.M. Smucker Co. (The),
1.390%, 10–2–17		2,596		2,596
John Deere Canada ULC (GTD by Deere & Co.),
1.190%, 10–23–17		5,000		4,996
McDonalds Corp.,
1.500%, 10–11–17		4,000		3,998
				27,583

	Value
TOTAL SHORT-TERM SECURITIES – 1.2%	$	27,583
(Cost: $27,585)
TOTAL INVESTMENT SECURITIES – 100.3%	$	2,349,563
(Cost: $1,718,251)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.3)%		(7,662	)
NET ASSETS – 100.0%	$	2,341,901

Notes to Schedule of Investments

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

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

(C) Rate shown is the yield to maturity at September 30, 2017.

The following written options were outstanding at September 30, 2017 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC		Type		Number of Contracts		Notional Amount		Expiration Month		Exercise Price		Premium Received		Value
Kansas City Southern		UBS AG		Put		339		34		December 2017	$	100.00	$	54	$	(49	)
Sprouts Farmers Market, Inc.		N/A		Put		2,444		244		October 2017		22.50		748		(917	)
													$	802	$	(966	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	2,318,434	$	—	$	—
Purchased Options		1,302		2,244		—
Short-Term Securities		—		27,583		—
Total	$	2,319,736	$	29,827	$	—
Liabilities
Written Options	$	—	$	966	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

OTC = Over the Counter

See Accompanying Notes to Financial Statements.

90 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY MID CAP INCOME OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	98.3%
Consumer Discretionary	20.0%
Information Technology	17.0%
Industrials	14.6%
Materials	11.4%
Health Care	10.4%
Financials	8.8%
Consumer Staples	7.4%
Energy	3.3%
Utilities	2.8%
Real Estate	2.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.7%

Lipper Rankings

Category: Mid-Cap Core Funds Universe Average	Rank	Percentile
1 Year	355/388		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.

Top 10 Equity Holdings

Company	Sector	Industry
HNI Corp.	Industrials	Office Services & Supplies
Glacier Bancorp, Inc.	Financials	Regional Banks
Cracker Barrel Old Country Store, Inc.	Consumer Discretionary	Restaurants
Sonoco Products Co.	Materials	Paper Packaging
National Instruments Corp.	Information Technology	Electronic Equipment & Instruments
V.F. Corp.	Consumer Discretionary	Apparel, Accessories & Luxury Goods
Arthur J. Gallagher & Co.	Financials	Insurance Brokers
Rockwell Automation, Inc.	Industrials	Electrical Components & Equipment
HealthSouth Corp.	Health Care	Health Care Facilities
C.H. Robinson Worldwide, Inc.	Industrials	Air Freight & Logistics

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

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

2017 SEMIANNUAL REPORT 91

SCHEDULE OF INVESTMENTS IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel, Accessories & Luxury Goods – 2.9%
V.F. Corp.		156	$	9,926
Consumer Electronics – 2.8%
Garmin Ltd.		176		9,523
Home Furnishings – 2.8%
Leggett & Platt, Inc.		202		9,634
Household Appliances – 2.8%
Snap-on, Inc.		63		9,432
Leisure Products – 2.8%
Polaris Industries, Inc.		91		9,494
Movies & Entertainment – 2.9%
Cinemark Holdings, Inc.		267		9,653
Restaurants – 3.0%
Cracker Barrel Old Country Store, Inc.		66		10,006
Total Consumer Discretionary – 20.0%				67,668
Consumer Staples
Household Products – 2.8%
Clorox Co. (The)		71		9,358
Packaged Foods & Meats – 4.6%
Hershey Foods Corp.		62		6,813
Kellogg Co.		141		8,824
				15,637
Total Consumer Staples – 7.4%				24,995
Energy
Oil & Gas Drilling – 0.5%
Helmerich & Payne, Inc.		32		1,654
Oil & Gas Storage & Transportation – 2.8%
Targa Resources Corp.		198		9,374
Total Energy – 3.3%				11,028
Financials
Insurance Brokers – 2.9%
Arthur J. Gallagher & Co.		161		9,891
Regional Banks – 5.9%
Glacier Bancorp, Inc.		270		10,184
Umpqua Holdings Corp.		497		9,702
				19,886
Total Financials – 8.8%				29,777
Health Care
Health Care Equipment – 2.9%
Becton Dickinson & Co.		50		9,723

COMMON STOCKS (Continued)	Shares		Value
Health Care Facilities – 2.9%
HealthSouth Corp.		212	$	9,849
Health Care Services – 4.6%
Cardinal Health, Inc.		145		9,685
Quest Diagnostics, Inc.		63		5,945
				15,630
Total Health Care – 10.4%				35,202
Industrials
Air Freight & Logistics – 2.9%
C.H. Robinson Worldwide, Inc.		129		9,821
Diversified Support Services – 2.9%
KAR Auction Services, Inc.		205		9,793
Electrical Components & Equipment – 2.9%
Rockwell Automation, Inc.		55		9,875
Environmental & Facilities Services – 2.9%
Republic Services, Inc., Class A		145		9,579
Office Services & Supplies – 3.0%
HNI Corp.		246		10,200
Total Industrials – 14.6%				49,268
Information Technology
Communications Equipment – 2.8%
Harris Corp.		72		9,434
Data Processing & Outsourced Services – 5.6%
Broadridge Financial Solutions, Inc.		117		9,425
Paychex, Inc.		158		9,471
				18,896
Electronic Components – 2.9%
Maxim Integrated Products, Inc.		205		9,791
Electronic Equipment & Instruments – 2.9%
National Instruments Corp.		237		9,986
Semiconductors – 2.8%
Microchip Technology, Inc.		107		9,575
Total Information Technology – 17.0%				57,682
Materials
Fertilizers & Agricultural Chemicals – 2.8%
Scotts Miracle-Gro Co. (The)		98		9,514
Paper Packaging – 5.8%
Avery Dennison Corp.		98		9,651
Sonoco Products Co.		198		9,995
				19,646
Specialty Chemicals – 2.8%
RPM International, Inc.		185		9,491
Total Materials – 11.4%				38,651

COMMON STOCKS (Continued)	Shares		Value
Real Estate
Residential REITs – 2.6%
American Campus Communities, Inc.		200	$	8,818
Total Real Estate – 2.6%				8,818
Utilities
Electric Utilities – 2.8%
OGE Energy Corp.		268		9,656
Total Utilities – 2.8%				9,656
TOTAL COMMON STOCKS – 98.3%			$	332,745
(Cost: $281,676)
SHORT-TERM SECURITIES	Principal
Commercial Paper (A) – 1.2%
Medtronic Global Holdings SCA,
1.252%, 10–3–17	$	4,000		3,999
Master Note – 0.3%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (B)		892		892
TOTAL SHORT-TERM SECURITIES – 1.5%			$	4,891
(Cost: $4,892)
TOTAL INVESTMENT SECURITIES – 99.8%			$	337,636
(Cost: $286,568)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2%				515
NET ASSETS – 100.0%			$	338,151

92 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

(A) Rate shown is the yield to maturity at September 30, 2017.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	332,745	$	—	$	—
Short-Term Securities		—		4,891		—
Total	$	332,745	$	4,891	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

LIBOR = London Inberbank Offered Rate

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 93

PORTFOLIO HIGHLIGHTS IVY MUNICIPAL BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Bonds	92.5%
Municipal Bonds	92.5%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	7.5%

Lipper Rankings

Category: General Municipal Debt Funds	Rank	Percentile
1 Year	158/257		62
3 Year	179/225		80
5 Year	162/204		80
10 Year	80/155		52

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

Quality Weightings

Investment Grade	84.8%
AAA	2.5%
AA	38.1%
A	34.2%
BBB	10.0%
Non-Investment Grade	7.7%
BB	1.3%
B	0.3%
Non-rated	6.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	7.5%

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. For securities not rated by Moody’s, ratings are obtained from Fitch. 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.

94 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS	Principal		Value
Alabama – 1.2%
The Pub Edu Bldg Auth of Tuscaloosa, Student Hsng Rev Bonds (Univ of AL Ridgecrest Residential Proj), Ser 2008,
6.750%, 7–1–33	$	500	$	522
The Spl Care Fac Fin Auth of Birmingham - Children’s Hosp, Hlth Care Fac Rev Bonds, Ser 2009,
6.000%, 6–1–39		750		811
Water Works Board of Birmingham, AL, Water Rev Bonds, Ser 2009-A,
5.125%, 1–1–34		750		789
				2,122
Arizona – 1.2%
AZ Cert of Part, Ser 2010A (Insured by AGM),
5.250%, 10–1–26		1,000		1,080
Rio Nuevo Multipurp Fac Dist (Tucson, AZ), Sub Lien Excise Tax Rev Bonds, Ser 2008,
6.625%, 7–15–25		500		522
Univ Med Ctr Corp. (Tucson, AZ), Hosp Rev Bonds, Ser 2009,
6.500%, 7–1–39		500		547
				2,149
Arkansas – 0.5%
Board of Trustees of the Univ of AR, Var Fac Rev Bonds (Fayetteville Campus), Rfdg and Impvt Ser 2016A,
5.000%, 11–1–37		745		869
California – 14.3%
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 G-1 (SIFMA Municipal Swap Index plus 110 bps),
2.040%, 4–1–45 (A)		1,500		1,526
CA Cmnty Trans Rev (Installment Sale), Cert of Part (T.R.I.P. - Total Road Impvt Prog), Ser 2012B,
5.250%, 6–1–42		345		382
CA Muni Fin Auth, Cmnty Hosp of Cent CA Oblig Group Cert of Part,
5.500%, 2–1–39		460		488
CA Muni Fin Auth, Edu Rev Bonds (American Heritage Edu Fndtn Proj), Ser 2016A,
5.000%, 6–1–36		1,000		1,118
CA Pollutn Ctl Fin Auth, Solid Waste Disp Rev Bonds (Republic Svc, Inc. Proj), Ser 2002B,
5.250%, 6–1–23		415		418
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A,
5.000%, 10–1–22		350		375
CA Statewide Cmnty Dev Auth, Insd Rev Bonds (Henry Mayo Newhall Mem Hosp), Ser 2007A,
5.000%, 10–1–37		500		500

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
CA Statewide Cmnty Dev Auth, Student Hsng Rev Bonds (Univ of CA, Irvine East Campus Apt, Phase I Rfdg-CHF-Irvine LLC), Ser 2011,
5.000%, 5–15–21	$	1,365	$	1,545
CA Various Purp GO Bonds:
5.250%, 9–1–26		1,500		1,737
5.250%, 10–1–29		500		541
6.500%, 4–1–33		1,000		1,082
6.000%, 11–1–39		500		550
CA Various Purp GO Rfdg Bonds,
5.000%, 2–1–33		2,000		2,305
Cnty of Sacramento, Arpt Sys Sub and PFC/Grant Rev Bonds, Ser 2009,
5.125%, 7–1–25		500		515
Golden State Tob Securitization Corp., Enhanced Tob Stlmt Asset-Bkd Bonds, Ser 2013A,
5.000%, 6–1–30		1,000		1,156
La Quinta Redev Proj Areas No. 1 and 2, Tax Alloc Rfdg Bonds, Ser 2014A,
5.000%, 9–1–34		750		864
Los Angeles Unif Sch Dist (Cnty of Los Angeles, CA), GO Bonds, Election of 2005, Ser 2009F,
5.000%, 1–1–34		500		535
Modesto, CA, Irrigation Dist Fin Auth, Elec Sys Rev Bonds, Ser 2015A,
5.000%, 10–1–36		670		765
Mountain View Shoreline Reg Park Comnty (Santa Clara Cnty, CA), Rev Bonds, Ser 2011A,
5.000%, 8–1–21		250		284
Palomar Hlth, GO Rfdg Bonds, Ser 2016B,
4.000%, 8–1–37		1,000		1,055
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part,
6.750%, 11–1–39		250		280
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, 2010 Tax Alloc Bonds, Ser E:
5.250%, 10–1–20		570		642
6.000%, 10–1–25		445		511
San Jose, CA, Arpt Rev Bonds, Ser 2011A-1,
5.250%, 3–1–21		500		566
Santa Ana Unif Sch Dist (Orange County, CA), Election of 2008 Gen Oblig Bond, Series B,
0.000%, 8–1–37 (B)		1,455		703
Southn CA Pub Power Auth, Transmission Proj Rev Bonds (Southn Transmission Proj), Ser 2008B,
6.000%, 7–1–27		500		520
State Pub Works Board of CA, Lease Rev Bonds (Various Cap Proj), Ser 2011A:
5.250%, 10–1–24		500		577
5.000%, 12–1–24		500		574

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
Successor Agy to the Redev Agy of the City of Stockton, Tax Alloc Rfdg Bonds, Ser 2016A,
5.000%, 9–1–37	$	2,000	$	2,294
Trustees of the CA State Univ, Systemwide Rev Bonds, Ser 2015A,
5.000%, 11–1–38		500		587
Upland Unif Sch Dist (San Bernardino Cnty, CA), Election of 2008 GO Bonds, Ser A,
0.000%, 8–1–31(B)		150		98
Vernon Elec Sys Rev Bonds, Ser 2012A,
5.500%, 8–1–41		315		349
				25,442
Colorado – 2.1%
Adams 12 Five Star Sch, Adams and Broomfield Cnty, CO Cert of Part, Ser 2008,
5.000%, 12–1–25		500		524
City and Cnty of Broomfield, CO, Rfdg Cert of Part, Ser 2010,
5.000%, 12–1–23		500		561
Joint Sch Dist No. 28J, Adams and Arapahoe Cnty, CO, GO Bonds, Ser 2008,
6.000%, 12–1–28		500		530
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008,
6.125%, 12–1–30		500		504
Platte Vly Fire Protection Dist, Weld Cnty, CO, Cert of Part, Ser 2012,
5.000%, 12–1–36		300		322
Rgnl Trans Dist of CO, Cert of Part, Ser 2015A,
5.000%, 6–1–35		435		498
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010,
6.500%, 1–15–30		750		835
				3,774
Connecticut – 0.8%
Cap City Econ Dev Auth, Prkg and Enrg Fee Rev Bonds, Ser 2008D,
5.000%, 6–15–22		370		380
CT GO Bonds, Ser 2012D (SIFMA Municipal Swap Index plus 92 bps),
1.860%, 9–15–19 (A)		1,000		1,002
				1,382
District Of Columbia – 1.4%
DC GO Rfdg Bonds, Ser 2008F (Insured by BHAC),
5.000%, 6–1–19		1,000		1,027
DC Hosp Rev Bonds (Sibley Mem Hosp Issue), Ser 2009,
6.375%, 10–1–39		750		829

2017 SEMIANNUAL REPORT 95

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
District Of Columbia (Continued)
Metro WA DC Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2009C,
0.000%, 10–1–41 (B)	$	500	$	649
				2,505
Florida – 6.9%
Brevard Cnty Hlth Fac Auth, Hlth Rev Bonds (Hlth First, Inc. Proj), Ser 2009B,
7.000%, 4–1–39		500		545
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009,
6.750%, 11–1–39		500		531
Hillsborough Cnty Aviation Auth, FL Intl Arpt, Sub Rev Bonds, Ser 2015B,
5.000%, 10–1–35		300		341
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008A,
5.625%, 8–15–29		555		578
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008B,
8.000%, 8–15–32		600		684
Miami-Dade Cnty, FL, Aviation Rev Bonds, Miami Intl Arpt (Hub of the Americas), Ser 2009A,
5.500%, 10–1–36		500		541
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B,
5.000%, 10–1–23		500		553
Miami-Dade Cnty, FL, GO Bonds (Bldg Better Cmnty Prog), Ser 2008B,
6.250%, 7–1–26		500		520
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008B (Insured by AGM),
5.250%, 10–1–22		500		589
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008C (Insured by BHAC),
5.000%, 10–1–17		500		500
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A,
7.250%, 10–1–34		500		615
Osceola Cnty, FL, Sales Tax Rev Rfdg Bonds, Ser 2016A,
5.000%, 10–1–37		2,005		2,319
Palm Beach Co, Hlth Fac Auth Rev Bonds (Lifespace Cmnty, Inc.), Ser 2015C,
5.000%, 5–15–30		1,000		1,150
Port St. Lucie, FL, Spl Assmt Rfdg Bonds (City Ctr Spl Assmt Dist), Ser 2008A,
5.750%, 7–1–20		500		518
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmnty Proj), Ser 2010A,
5.875%, 8–1–40		500		565

MUNICIPAL BONDS (Continued)	Principal		Value
Florida (Continued)
St. Lucie, FL, Util Sys Rfdg Rev Bonds, Ser 2016,
4.000%, 9–1–34	$	1,000	$	1,059
Volusia Cnty Edu Fac Auth, Edu Fac Rev Rfdg Bonds (Embry-Riddle Aeronautical Univ, Inc. Proj), Ser 2011,
5.250%, 10–15–22		500		579
				12,187
Georgia – 0.3%
Muni Elec Auth of GA, Proj One Sub Bonds, Ser 2008D,
5.750%, 1–1–20		500		518
Hawaii – 1.6%
HI Arpt Sys Rev Bond, Rfdg Ser 2011,
5.000%, 7–1–21		1,000		1,132
HI Dept of Budget and Fin, Spl Purp Rev Bonds (The Queen’s Hlth Sys), Ser 2015A,
5.000%, 7–1–35		1,500		1,714
				2,846
Illinois – 6.0%
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A,
5.000%, 5–1–26		150		150
Build IL Sales Tax Rev Bonds, Ser 2011,
5.000%, 6–15–27		500		550
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Rfdg Bonds, Ser 2015B,
5.000%, 1–1–34		1,000		1,144
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Rfdg Bonds, Ser 2016C,
5.000%, 1–1–34		1,500		1,732
City of Chicago, Second Lien Water Rev Bonds, Ser 2014,
5.000%, 11–1–39		1,500		1,636
City of Chicago, Second Lien Water Rev Bonds, Ser 2000,
5.000%, 11–1–30		500		576
IL Fin Auth, DePaul Univ Rev Bonds, Ser 2016,
5.000%, 10–1–41		2,410		2,727
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009,
6.500%, 4–1–39		500		535
IL Fin Auth, Rev Bonds, The Univ of Chicago, Ser 2008B,
5.500%, 7–1–19		500		517
IL Muni Elec Agy, Power Supply Sys Rev Rfdg Bonds, Ser 2015A,
5.000%, 2–1–32		695		810
IL Sales Tax Rev Bonds (Jr Oblig), Ser 2013,
5.000%, 6–15–26		300		344
				10,721

MUNICIPAL BONDS (Continued)	Principal		Value
Indiana – 0.9%
IN Muni Power Agy, Power Supply Sys Rfdg Rev Bonds, Ser 2016C,
5.000%, 1–1–39	$	1,000	$	1,144
Mt. Vernon Sch Bldg Corp. of Hancock Cnty, IN, First Mtg Bonds, Ser 2007 (Insured by AGM),
5.250%, 1–15–32		500		506
				1,650
Iowa – 2.0%
Altoona, IA, Annual Appropriation Urban Renewal Tax Incr Rev Bonds, Ser 2008,
6.000%, 6–1–34		1,000		1,035
Ames, IA, Hosp Rev Rfdg Bonds (Mary Greeley Med Ctr), Ser 2016,
4.000%, 6–15–35		1,510		1,592
IA Higher Edu Loan Auth, Private College Fac Rev Bonds (Upper IA Univ Proj), Ser 2012,
5.000%, 9–1–33		750		896
				3,523
Kansas – 2.0%
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009,
7.000%, 9–1–38		500		528
Saint Marys, KS, Pollutn Ctl Rev Bonds (Westn Res, Inc. Proj), Ser 1994 (Auction rate),
1.640%, 4–15–32 (A)		2,000		1,860
Shawnee Cnty, KS, Cert of Part (First Responders Comm Proj), Ser 2012,
5.000%, 9–1–24		1,050		1,156
				3,544
Kentucky – 2.1%
Cmnwlth of KY, State Ppty and Bldg Comsn, Rev and Rev Rfdg Bonds, Proj No. 90,
5.750%, 11–1–19		500		526
Jefferson Cnty, KY, Envirnmt Fac Rev Bonds (Louisville Gas and Elec Co. Proj), Ser 2001A (Auction rate),
2.180%, 9–1–27 (A)		1,500		1,388
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A:
5.500%, 6–1–21		500		557
6.500%, 3–1–45		675		770
Louisville Rgnl Arpt Auth, Arpt Sys Rev Bonds, Ser 2008A,
5.250%, 7–1–28		500		515
				3,756
Louisiana – 2.7%
LA Citizens Prop Ins Corp., Assmt Rev Rfdg Bonds, Ser 2012,
5.000%, 6–1–24		500		582
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Hosp Rev Bonds (Women’s Hosp Fndtn Gulf Opp Zone Proj), Ser 2010B,
6.000%, 10–1–44		750		858

96 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Louisiana (Continued)
New Orleans Aviation Board, Rev Rfdg Bonds (Restructuring GARBs), Ser 2009A-1,
6.000%, 1–1–23	$	500	$	531
New Orleans, LA, GO Rfdg Bonds, Ser 2012 (Insured by AGM),
5.000%, 12–1–26		1,500		1,708
Rgnl Transit Auth, New Orleans, LA, Sales Tax Rev Bonds, Ser 2010 (Insured by AGM),
5.000%, 12–1–22		1,000		1,110
				4,789
Maine – 1.5%
ME Tpk Auth, Tpk Rev Rfdg Bonds, Ser 2015,
5.000%, 7–1–34		2,255		2,602
Maryland – 0.8%
MD Econ Dev Corp., Pollutn Ctl Rev Rfdg Bonds (Potomac Elec Proj), Ser 2006,
6.200%, 9–1–22		500		536
MD Hlth and Higher Edu Fac Auth, Rev Bonds, Johns Hopkins Hlth Sys Oblig Group Issue, Ser 2012D (3-Month U.S. LIBOR*0.67 plus 83 bps),
1.659%, 5–15–38 (A)		965		965
				1,501
Massachusetts – 0.6%
MA Dev Fin Agy, Rev Bonds, Foxborough Rgnl Charter Sch Issue, Ser 2010,
6.375%, 7–1–30		470		507
MA Edu Fin Auth, Edu Loan Rev Bonds, Issue I, Ser 2009,
6.000%, 1–1–28		510		540
				1,047
Michigan – 3.8%
Kalamazoo Hosp Fin Auth, Hosp Rev Rfdg Bonds (Bronson Methodist Hosp), Ser 2003A,
5.000%, 5–15–26		500		511
Lincoln Consolidated Sch Dist, Cnty of Washtenaw and Wayne, MI, Rfdg Bonds, Ser 2016A,
5.000%, 5–1–35		500		577
MI Fin Auth, Hosp Rev and Rfdg Bonds (Trinity Hlth Credit Group), Ser 2015MI,
5.000%, 12–1–35		500		568
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2015I,
5.000%, 4–15–34		500		581
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2016I,
4.000%, 10–15–36		1,000		1,055

MUNICIPAL BONDS (Continued)	Principal		Value
Michigan (Continued)
MI State Hosp Fin Auth, Hosp Rev and Rfdg Bonds (Henry Ford Hlth Sys), Ser 2009,
5.750%, 11–15–39	$	750	$	824
MI State Hosp Fin Auth, Var Rate Rev Bonds (Ascension Hlth Credit Group), Ser 1999B-4,
5.000%, 11–15–32		2,000		2,299
State Bldg Auth, MI, 2008 Rev Rfdg Bonds (Fac Prog), Ser I,
5.000%, 10–15–18		305		317
				6,732
Minnesota – 0.3%
Minneapolis-St. Paul Metro Arpt Comsn, Sub Arpt Rev Rfdg Bonds, Ser 2010D,
5.000%, 1–1–20		500		541
Mississippi – 0.5%
The Univ of Southn MS, S.M. Edu Bldg Corp., Rev Bonds (Campus Fac Impvt Proj), Ser 2009,
5.375%, 9–1–36		750		811
Missouri – 5.5%
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A,
6.125%, 12–1–36		175		136
Hlth and Edu Fac Auth, Hlth Fac Rev Bonds (The Children’s Mercy Hosp), Ser 2009,
5.625%, 5–15–39		750		804
Indl Dev Auth of Joplin, MO, Hlth Fac Rev Bonds (Freeman Hlth Sys), Ser 2011,
5.500%, 2–15–31		750		817
Kansas City, MO, Spl Oblig Impvt and Rfdg Bonds (Downtown Arena Proj), Ser 2016E,
5.000%, 4–1–40		2,000		2,280
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Iatan 2 Proj), Ser 2015A,
5.000%, 12–1–37		1,000		1,127
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Prairie State Proj), Ser 2016A,
5.000%, 12–1–40		1,000		1,134
Platte Cnty R-III Sch Dist Bldg Corp., Leasehold Rfdg and Impvt Rev Bonds, Ser 2008,
5.000%, 3–1–28		340		345
St. Louis Cnty, MO, Indl Dev Auth, Sr Living Fac Rev Bonds (Friendship Vlg Sunset Hills), Ser 2012,
5.000%, 9–1–32		1,120		1,208
St. Louis Muni Fin Corp., Compound Int Leasehold Rev Bonds (Convention Ctr Cap Impvt Proj), Ser 2010A (Insured by AGM),
0.000%, 7–15–36 (B)		2,350		1,135

MUNICIPAL BONDS (Continued)	Principal		Value
Missouri (Continued)
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007,
6.850%, 4–1–29	$	200	$	205
The Indl Dev Auth of St. Louis, MO, Sr Living Fac Rev Bonds (Friendship Vlg of West Cnty), Ser 2007A,
5.500%, 9–1–28		500		501
				9,692
Nebraska – 1.3%
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2015A,
5.000%, 2–1–33		1,000		1,157
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2016A,
5.000%, 2–1–41		1,000		1,137
				2,294
Nevada – 0.6%
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A,
8.000%, 6–15–30		500		559
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008:
6.250%, 12–1–17		270		272
6.500%, 12–1–18		290		309
				1,140
New Hampshire – 0.4%
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A,
6.875%, 7–1–41		150		168
NH Hlth and Edu Fac Auth, FHA Insd Mtg Rev Bonds, LRG Hlthcare Issue, Ser 2009 (Insured by FHA),
7.000%, 4–1–38		500		558
				726
New Jersey – 2.8%
NJ Econ Dev Auth, Rev Bonds (Provident Group-Montclair Ppty LLC - Montclair St Univ Student Hsng Proj), Ser 2010A,
5.750%, 6–1–31		850		927
NJ Econ Dev Auth, Sch Fac Constr Rfdg Bonds, Ser 2011EE,
5.250%, 9–1–24		500		540
NJ Higher Edu Student Assistance Auth, Student Loan Rev Bonds, Ser 2011-1,
5.000%, 12–1–19		500		537
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds, Barnabas Hlth Issue, Ser 2011A,
5.625%, 7–1–37		500		580
NJ Hlth Care Fac Fin Auth, Rev Bonds, Virtua Hlth Issue, Ser 2009A,
5.500%, 7–1–38		500		535

2017 SEMIANNUAL REPORT 97

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
New Jersey (Continued)
NJ Trans Trust Fund Auth, Trans Sys Bonds (Cap Apprec Bonds), Ser 2010A,
0.000%, 12–15–40 (B)	$	2,000	$	677
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2006A (Insured by AGM/CR),
5.500%, 12–15–22		500		582
Passaic Vly Sewerage Commissioners (NJ), Sewer Sys Bonds, Ser G,
5.750%, 12–1–21		435		505
				4,883
New Mexico – 0.0%
NM Mtg Fin Auth, Sngl Fam Mtg Prog Class I Bonds, Ser 2008D-2 (Insured by GNMA/FNMA/FHLMC),
5.250%, 7–1–30		50		51
New York – 10.2%
Buffalo and Erie Cnty Indl Land Dev Corp., Oblig Group Rev Bonds (Catholic Hlth Sys, Inc. Proj), Ser 2015,
5.250%, 7–1–35		750		843
Dormitory Auth of the State of NY, State Personal Income Tax Rev Bonds (Gen Purp), Ser 2015C (Tax-Exempt),
5.000%, 2–15–38		750		869
Long Island Power Auth, Elec Sys Gen Rev Bonds, Ser 2014A (Insured by AGM),
5.000%, 9–1–39		1,500		1,702
Metro Trans Auth, Trans Rev Green Bonds, Ser 2016A-1,
5.000%, 11–15–41		500		575
NY Dormitory Auth, Mercy Med Ctr Rev Bonds (Catholic Hlth of Long Island Oblig Group), Ser 1999B (Auction rate),
2.361%, 7–1–29 (A)		1,225		1,141
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohowk Power Corp. Proj), Ser 1985A (Insured by AMBAC) (Auction rate),
3.088%, 12–1–23 (A)		1,380		1,380
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohawk Power Corp. Proj), Ser 2004A (Insured by Capital Assurance, Inc.) (Auction rate),
3.088%, 7–1–29 (A)		1,280		1,293
NY State Enrg Research and Dev Auth, Fac Rev Bonds (Consolidated Edison Co. of NY, Inc. Proj), Sub Ser 1999A-1 (Insured by AMBAC) (Auction rate),
1.365%, 5–1–34 (A)		2,000		1,865
NYC GO Bonds, Fiscal 2014 Ser G,
5.000%, 8–1–30		1,000		1,172

MUNICIPAL BONDS (Continued)	Principal		Value
New York (Continued)
NYC Hsng Dev Corp., Multi-Fam Hsng Rev Bonds, Ser 2009K,
4.950%, 11–1–39	$	415	$	425
NYC Indl Dev Agy, Pilot Rev Bonds (Yankee Stadium Proj), Ser 2009A:
0.000%, 3–1–25 (B)		500		413
0.000%, 3–1–26 (B)		500		398
0.000%, 3–1–27 (B)		500		384
NYC Muni Water Fin Auth, Water and Sewer Sys Second Gen Resolution Rev Bonds, Ser 2015HH,
5.000%, 6–15–37		1,500		1,749
NYC Transitional Fin Auth, Bldg Aid Rev Bonds, Ser 2016S-1,
5.000%, 7–15–37		1,000		1,158
NYC Transitional Fin Auth, Future Tax Secured Tax-Exempt Sub Bonds, Ser 2013I,
5.000%, 5–1–29		400		469
Port Auth of NY & NJ Consolidated Bonds, One Hundred Fifty-Second Ser (Insured by BHAC),
5.750%, 11–1–30		500		514
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013TE,
5.000%, 12–15–31		1,500		1,784
				18,134
North Carolina – 0.5%
NC Eastn Muni Power Agy, Power Sys Rev Bonds, Ser 2008C,
6.000%, 1–1–19		70		73
NC Tpk Auth, Triangle Expressway Sys Rev Bonds, Ser 2009A,
0.000%, 1–1–37 (B)		500		243
Oak Island, NC, Enterprise Sys Rev Bonds, Ser 2009,
6.000%, 6–1–34		500		541
				857
Ohio – 0.5%
OH Air Quality Dev Auth, Envirnmt Impvt Rev Bonds (Buckeye Power, Inc. Proj), Ser 2010,
5.750%, 12–1–30		500		567
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (NW OH Bond Fund) (Midwest Terminals Proj), Ser 2007C,
6.000%, 11–15–27		350		351
				918
Oklahoma – 0.5%
Grand River Dam Auth, Rev Bonds, Ser 2008A (Insured by BHAC),
5.000%, 6–1–18		905		930
Oregon – 0.8%
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2009A,
5.500%, 7–15–35		250		270

MUNICIPAL BONDS (Continued)	Principal		Value
Oregon (Continued)
Port of Portland, OR, Portland Intl Arpt Rfdg Rev Bonds, Ser Twenty-Three,
5.000%, 7–1–34	$	1,000	$	1,158
				1,428
Pennsylvania – 4.0%
Dauphin Cnty Gen Auth, Hlth Sys Rev Bonds (Pinnacle Hlth Sys Proj), Ser 2009A,
6.000%, 6–1–36		600		649
Lycoming Cnty Auth, Hlth Sys Rev Bonds (Susquehanna Hlth Sys Proj), Ser 2009A,
5.750%, 7–1–39		500		537
PA Auth for Indl Dev, Rev Bonds (MaST Charter Sch Proj), Ser 2010,
6.000%, 8–1–35		750		852
PA Higher Edu Fac Auth, Rev Bonds (Shippensburg Univ Student Svc, Inc. Student Hsng Proj at Shippensburg Univ of PA), Ser 2011,
6.000%, 10–1–26		500		551
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009D,
5.500%, 12–1–41		750		818
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2010 B-2,
5.750%, 12–1–28		1,500		1,717
PA Tpk Comsn, Tpk Sub Rev Rfdg Bonds, Ser 2016,
5.000%, 6–1–38		1,000		1,116
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011,
7.250%, 12–15–31		400		449
Philadelphia, PA, GO Rfdg Bonds, Ser 2008A (Insured by AGM),
5.250%, 12–15–24		445		468
				7,157
Rhode Island – 0.1%
RI Student Loan Auth, Student Loan Prog Rev Bonds, Sr Ser 2008A,
5.250%, 12–1–18		230		232
Tennessee – 0.8%
Memphis-Shelby Cnty Arpt Auth, Arpt Rfdg Rev Bonds, Ser 2010B,
5.750%, 7–1–25		750		833
The Hlth, Edu and Hsng Fac Board of Shelby, TN, Rev Bonds (Methodist Le Bonheur Hlthcare), Ser 2008C,
5.250%, 6–1–18		500		514
				1,347
Texas – 7.5%
Arlington, TX, Spl Tax Rev Bonds, Ser 2008 (Insured by BHAC),
5.000%, 8–15–18		300		311
Austin, TX, Arpt Sys Rev Bonds (Travis, Williamson and Hays Cntys), Ser 2014,
5.000%, 11–15–39		1,000		1,117

98 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
Board of Regents, TX State Univ Sys, Rev Fin Sys Rev Bonds, Ser 2008,
5.250%, 3–15–19	$	355	$	362
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Rfdg Bonds, Ser 2009A,
9.250%, 3–1–24		500		552
Clifton Higher Edu Fin Corp., Edu Rev Bonds (IDEA Pub Sch), Ser 2011,
5.750%, 8–15–41		500		583
Clifton Higher Edu Fin Corp., Edu Rev Bonds (Uplift Edu), Ser 2014A,
4.250%, 12–1–34		1,000		1,018
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A,
6.500%, 5–15–31		1,000		1,185
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2012A,
5.000%, 7–1–32		500		554
Howard Cnty, TX, GO Bonds, Ser 2008,
4.650%, 2–15–24		505		512
Lower Colorado River Auth, Rfdg Rev Bonds, Ser 2008A,
5.750%, 5–15–23		500		515
Mission Econ Dev Corp., Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff LLC Proj), Ser 2011,
5.625%, 12–1–17		150		150
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008D,
0.000%, 1–1–30 (B)		2,000		1,377
North TX Twy Auth, Sys Rev Rfdg Bonds (First Tier Current Int Bonds), Ser 2008A,
6.000%, 1–1–25		500		506
Prosper, TX (Collin Cnty), Combination Tax and Rev Cert of Oblig, Ser 2008,
5.500%, 2–15–20		500		509
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2007,
5.625%, 11–15–27		250		250
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2015A,
5.250%, 11–15–35		400		416
Trinity River Auth of TX (Tarrant Cnty Water Proj), Impvt Rev Bonds, Ser 2008,
5.750%, 2–1–26		325		330

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009,
6.875%, 12–31–39	$	500	$	556
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (LBJ Infra Group LLC IH-635 Managed Lanes Proj), Ser 2010,
7.500%, 6–30–33		750		855
TX Pub Fin Auth, TX Southn Univ Rev Fin Sys Bonds, Ser 2016 (Insured by BAMAC),
4.000%, 5–1–33		500		526
TX Trans Comsn, Cent TX Tpk Sys Rev Bonds (First Tier Rev Rfdg Bonds), Ser 2015-B,
5.000%, 8–15–37		1,000		1,123
				13,307
Utah – 0.3%
Midvale, UT, Muni Bldg Auth Lease Rev Bonds (City Hall Proj), Ser 2012,
2.000%, 10–15–17		465		465
Virginia – 0.4%
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C,
7.500%, 7–1–29		500		533
VA Pub Bldg Auth, Pub Fac Rev Bonds, Ser 2008B,
5.250%, 8–1–22		250		259
				792
Washington – 0.2%
Port of Seattle, Intermediate Lien Rev Rfdg Bonds, Ser 2015B,
5.000%, 3–1–35		300		349
West Virginia – 0.3%
WV Hosp Fin Auth, Hosp Rev Rfdg and Impvt Bonds (WV Utd Hlth Sys Oblig Group), Ser 2009C,
5.500%, 6–1–39		500		537
Wisconsin – 2.0%
Milwaukee Cnty, WI, Arpt Rev Rfdg Bonds, Ser 2010B,
5.000%, 12–1–19		1,000		1,079
WI Hlth and Edu Fac Auth, Rev Bonds (Ascension Sr Credit Group), Ser 2016A,
4.000%, 11–15–33		1,000		1,048

MUNICIPAL BONDS (Continued)	Principal		Value
Wisconsin (Continued)
WI Hlth and Edu Fac Auth, Rev Bonds (Med College of WI, Inc.), Ser 2016,
5.000%, 12–1–41	$	750	$	855
WI Hlth and Edu Fac Auth, Rev Bonds (Pro Hlth Care, Inc. Oblig Group), Ser 2009,
6.625%, 2–15–39		500		538
				3,520
Wyoming – 0.3%
WY Muni Power Agy, Power Supply Sys Rev Bonds, Ser 2008A,
5.250%, 1–1–23		500		506
TOTAL MUNICIPAL BONDS – 92.5%			$	164,276
(Cost: $154,857)
SHORT-TERM SECURITIES
Master Note – 1.6%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (C)		2,891		2,891
Municipal Obligations – 4.6%
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.) (BVAL plus 13 bps),
0.960%, 10–7–17 (C)		1,650		1,650
Minneapolis, MN, Hsng Dev, Rfdg Rev Bonds (One Ten Grant Proj), Ser 1989 (GTD by FNMA) (BVAL plus 8 bps),
0.920%, 10–7–17 (C)		5,500		5,500
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004 (GTD by U.S. Bank N.A.) (BVAL plus 17 bps),
0.940%, 10–1–17 (C)		955		955
				8,105
TOTAL SHORT-TERM SECURITIES – 6.2%			$	10,996
(Cost: $10,996)
TOTAL INVESTMENT SECURITIES – 98.7%			$	175,272
(Cost: $165,853)
CASH AND OTHER ASSETS, NET OF LIABILITIES(D) – 1.3%				2,226
NET ASSETS – 100.0%			$	177,498

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

(B) Zero coupon bond.

2017 SEMIANNUAL REPORT 99

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

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

(D) Cash of $99 has been pledged as collateral on open futures contracts.

The following futures contracts were outstanding at September 30, 2017 (contracts unrounded):

Description	Type		Number of Contracts	Expiration Date		Notional Amount	Value	Unrealized Appreciation
U.S. Treasury Long Bond		Short	30		12–29–17	3,000	$(4,584)	$	81

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	—	$	164,276	$	—
Short-Term Securities		—		10,996		—
Total	$	—	$	175,272	$	—
Futures Contracts	$	81	$	—	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

AGM = Assured Guaranty Municipal

AMBAC = American Municipal Bond Assurance Corp.

BAMAC = Build America Mutual Assurance Co.

BHAC = Berkshire Hathaway Assurance Corp.

BVAL = Bloomberg Valuation Benchmark Municipal Curve

CR = Custodial Receipts

FHA = Federal Housing Administration

FHLMC = Federal Home Loan Mortgage Corp.

FNMA = Federal National Mortgage Association

GNMA = Government National Mortgage Association

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

SIFMA = Securities Industry and Financial Markets Association

See Accompanying Notes to Financial Statements.

100 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY MUNICIPAL HIGH INCOME FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	0.3%
Bonds	94.4%
Municipal Bonds	94.1%
Corporate Debt Securities	0.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	5.3%

Lipper Rankings

Category: High Yield Municipal Debt Funds	Rank	Percentile
1 Year	150/159		94
3 Year	123/138		89
5 Year	97/111		87

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

Quality Weightings

Investment Grade	29.9%
AA	2.3%
A	6.3%
BBB	21.3%
Non-Investment Grade	64.5%
BB	15.5%
B	7.4%
CCC	1.4%
Below CCC	0.0%
Non-rated	40.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Equities	5.6%

Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s. For securities not rated by Moody’s, ratings are obtained from Fitch. 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 101

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SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Education Services – 0.3%
1155 Island Avenue LLC (A)(I)		6,578	$	1,841
TOTAL COMMON STOCKS – 0.3%			$	1,841
(Cost: $1,074)
CORPORATE DEBT SECURITIES	Principal
Consumer Discretionary
Education Services – 0.3%
1155 Island Avenue LLC,
10.000%, 12–11–24 (A)	$	311		311
1155 Island Avenue LLC (10.000% Cash or 12.500% PIK),
10.000%, 12–11–24 (A)(B)		2,960		2,960
				3,271
TOTAL CORPORATE DEBT SECURITIES – 0.3%			$	3,271
(Cost: $2,924)
MUNICIPAL BONDS
Alabama – 2.5%
AL 21st Century Auth, Tob Stlmt Rev Bonds, Ser 2012-A,
5.000%, 6–1–21		1,000		1,120
DC Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2006A,
0.000%, 6–15–46 (C)		26,000		3,796
Fairfield, AL, GO Warrants, Ser 2012,
6.000%, 6–1–37		8,485		8,883
Jefferson Cnty, AL, Swr Rev Bonds, Ser 2013-D,
6.500%, 10–1–53		7,500		8,954
				22,753
Alaska – 0.7%
Northn Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2006A Sr Cur Int Bonds,
5.000%, 6–1–46		7,000		6,831
American Samoa – 0.5%
American Samoa Econ Dev Auth, Gen Rev and Rfdg Bonds, Ser 2015A,
6.625%, 9–1–35		5,000		5,028
Arizona – 1.3%
Indl Dev Auth of Pima, Edu Rev Bonds (Noah Webster Sch - Pima Proj), Tax-Exempt Ser 2014A,
7.000%, 12–15–43		1,500		1,650
Indl Dev Auth of Tempe, AZ, Rev Rfdg Bonds (Friendship Vlg of Tempe), Ser 2012A:
6.000%, 12–1–27		2,390		2,590
6.250%, 12–1–42		2,150		2,303
6.250%, 12–1–46		1,000		1,069
Indl Dev Auth of Yavapai, Edu Rev Bonds (AZ Agribusiness and Equine Ctr, Inc. Proj), Ser 2011,
7.875%, 3–1–42		3,500		3,927
				11,539

MUNICIPAL BONDS (Continued)	Principal		Value
California – 10.4%
Adelanto Pub Auth, Fixed Rate Rfdg Rev Bonds (Util Sys Proj), Ser 2009A,
6.750%, 7–1–39	$	4,000	$	4,283
CA Muni Fin Auth, Charter Sch Rev Bonds (Palmdale Aerospace Academy Proj), Ser 2016A,
5.000%, 7–1–41		1,750		1,824
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Taxable Ser 2009B,
8.000%, 10–1–22		400		456
CA Muni Fin Auth, Edu Fac Rev Bonds (Literacy First Proj), Ser 2010B,
6.000%, 9–1–30		2,040		2,190
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A,
5.000%, 10–1–42		1,200		1,249
CA Statewide Cmnty Dev Auth, Edu Fac Rev Bonds (Independence Support LLC Proj), Ser 2015,
7.000%, 6–1–45		4,000		3,501
CA Statewide Cmnty Dev Auth, Rev Bonds (Lancer Plaza Proj), Ser 2013:
5.625%, 11–1–33		1,400		1,535
5.875%, 11–1–43		1,890		2,083
CA Statewide Cmnty Dev Auth, Rev Bonds (Loma Linda Univ Med Ctr), Ser 2016A,
5.000%, 12–1–46		3,000		3,282
CA Statewide Cmnty Dev Auth, Sr Living Rev Bonds (Southn CA Presbyterian Homes), Ser 2009:
6.625%, 11–15–24		2,490		2,745
7.000%, 11–15–29		2,000		2,199
7.250%, 11–15–41		6,000		6,569
CA Various Purp GO Bonds,
6.000%, 4–1–35		500		537
Cert of Part, Oro Grande Elem Sch Dist, Ser 2013,
5.125%, 9–15–42		2,760		2,987
Foothill/Eastn Trans Corridor Agy, Toll Road Rfdg Rev Bonds, Ser 2013B-1 (Insured by AGM),
3.950%, 1–15–53		1,500		1,497
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007A-1:
5.000%, 6–1–33		2,245		2,243
5.125%, 6–1–47		13,140		13,121
Palamar Hlth, Rfdg Rev Bonds, Ser 2016,
4.000%, 11–1–39		5,700		5,675
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part,
6.000%, 11–1–41		3,000		3,247
Redev Agy of San Buenaventura, Merged San Buenaventura Redev Proj, 2008 Tax Alloc Bonds,
8.000%, 8–1–38		100		101

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
San Buenaventura Rev Bonds (Cmnty Mem Hlth Sys), Ser 2011:
8.000%, 12–1–26	$	1,400	$	1,724
8.000%, 12–1–31		9,400		11,332
San Mateo Cmnty Fac Dist No. 2008-1 (Bay Meadows), Spl Tax Bonds, Ser 2012,
6.000%, 9–1–42		8,000		8,902
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		12,395		12,391
				95,673
Colorado – 3.5%
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2008,
6.000%, 10–1–40		5,715		5,845
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2010,
6.125%, 10–1–40		5,000		5,382
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical Academy Proj), Ser 2008A,
7.400%, 12–1–38		85		91
CO Edu and Cultural Fac Auth, Charter Sch Rev Dev and Rfdg Bonds (Windsor Charter Academy Proj), Ser 2016:
3.875%, 9–1–26		570		558
5.000%, 9–1–36		1,000		1,005
5.000%, 9–1–46		1,390		1,389
CO High Performance Trans Enterprise, U.S. 36 and I-25 Managed Lanes Sr Rev Bonds, Ser 2014,
5.750%, 1–1–44		3,250		3,651
CO Hlth Fac Auth, Rev Bonds (CO Sr Residences Proj), Ser 2012:
6.750%, 6–1–32 (D)		2,610		2,048
7.125%, 6–1–47 (D)		3,000		2,353
CO Hlth Fac Auth, Rev Bonds (Total Longterm Care Natl Oblig Group Proj), Ser 2010A,
6.250%, 11–15–40		1,250		1,444
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax GO Rfdg and Impvt Bonds, Ser 2016A,
5.000%, 12–1–45		1,250		1,273
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax Subordinate GO Bonds, Ser 2016B,
7.250%, 12–15–45		500		498
Littleton Vlg Metro Dist No. 2, Ltd. Tax GO and Spl Rev Bonds, Ser 2015,
5.375%, 12–1–45		1,700		1,715

102 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Colorado (Continued)
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010,
6.500%, 1–15–30	$	3,000	$	3,341
Sierra Ridge Metro Dist No. 2, Ltd. Tax GO Bonds, Ser 2016A,
5.500%, 12–1–46		1,500		1,531
				32,124
Connecticut – 0.3%
CT Hlth and Edu Fac Auth, Hlthcare Fac Expansion Rev Bonds (Church Home of Hartford, Inc. Proj), Ser 2016A,
5.000%, 9–1–46		1,000		1,013
Harbor Point Infra Impvt Dist (Harbor Point Proj), Spl Oblig Rev Bonds, Ser 2010A,
7.875%, 4–1–39		2,000		2,212
				3,225
District Of Columbia – 0.1%
Metro WA DC Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2010B,
0.000%, 10–1–44 (C)		1,000		1,176
Florida – 4.3%
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009:
6.500%, 11–1–29		875		928
6.750%, 11–1–39		2,060		2,189
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2014A,
8.250%, 1–1–49 (D)		3,000		2,486
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2016A,
5.750%, 1–1–50 (D)		645		603
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2016B,
7.000%, 1–1–35 (D)		555		543
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2010A:
6.000%, 9–15–40		4,000		4,158
6.125%, 6–15–43		5,500		5,899
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2014A:
6.000%, 6–15–34		110		116
6.125%, 6–15–44		5,300		5,571
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2015A,
6.000%, 6–15–35		2,000		2,120
FL Dev Fin Corp., Taxable Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2012B,
7.500%, 6–15–18		300		303

MUNICIPAL BONDS (Continued)	Principal		Value
Florida (Continued)
Lee Cnty Indl Dev Auth, Hlthcare Fac Rfdg Rev Bonds (Cypress Cove at Health Park FL, Inc. Proj), Ser 2012,
6.500%, 10–1–47	$	6,000	$	6,519
Miami-Dade Cnty Indl Dev Auth, Rev Bonds (Youth Co-Op Charter Sch Proj), Ser 2015A,
6.000%, 9–15–45		3,250		3,390
Mid-Bay Bridge Auth, 1st Sr Lien Rev Bonds, Ser 2015A,
5.000%, 10–1–40		2,000		2,237
Osceola Cnty, Expressway Sys Rev Bonds (Poinciana Prkwy Proj), Ser 2014A,
5.375%, 10–1–47		2,000		2,154
				39,216
Georgia – 1.3%
Cobb Cnty, GA, Dev Auth Sr Living Rfdg Rev Bonds (Provident Vlg Creekside Proj), Ser 2016A:
6.000%, 7–1–36		1,250		1,173
6.000%, 7–1–51		2,000		1,821
Greene Cnty Dev Auth, GA, First Mtg Rev Bonds (Glen-I LLC Proj), Ser 2015A,
7.250%, 1–1–46		9,000		9,091
				12,085
Guam – 0.6%
Cert of Part (JFK High Sch Proj), Dept of Edu, GU, Ser 2010A:
6.625%, 12–1–30		1,400		1,464
6.875%, 12–1–40		3,500		3,684
				5,148
Hawaii – 0.8%
Dept of Budget and Fin of HI, Spl Purp Sr Living Rev Bonds (15 Craigside Proj), Ser 2009A,
9.000%, 11–15–44		4,200		4,894
Kaua’I Cmnty Fac Dist No. 2008-1 (Kukul’ula Dev Proj), Spl Tax Rev Bonds, Ser 2012,
5.750%, 5–15–42		2,000		2,048
				6,942
Idaho – 0.2%
ID Hsng and Fin Assoc (Compass Pub Charter Sch, Inc. Proj), Ser 2010A:
6.250%, 7–1–40		1,000		1,044
6.250%, 7–1–45		550		574
				1,618
Illinois – 10.3%
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A,
5.700%, 5–1–36		4,160		4,160

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois (Continued)
Cert of Part, Metra Market of Chicago LLC Redev Proj, Ser A,
6.870%, 2–15–24	$	1,000	$	1,003
Chicago Midway Arpt, Second Lien Rev Rfdg Bonds, Ser 2013B,
5.000%, 1–1–35		3,000		3,334
Chicago Multi-Fam Hsng, Rev Bonds (Goldblatts Supportive Living Proj), Ser 2013,
6.125%, 12–1–43		6,000		5,314
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Bonds, Ser 2015D,
5.000%, 1–1–46		2,000		2,248
Chicago O’Hare Intl Arpt, Gen Arpt Third Lien Rev Bonds, Ser 2011A:
5.750%, 1–1–39		1,000		1,143
Cook Cnty, IL, Recovery Zone Fac Rev Bonds (Navistar Intl Corp. Proj), Ser 2010,
6.500%, 10–15–40		2,000		2,150
Fairview Heights, IL, Tax Incr Rfdg Rev Bonds (Shoppes at St. Clair Square Redev Proj), Ser 2009A,
8.000%, 12–1–28		45		46
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009,
6.500%, 4–1–44		8,000		8,552
IL Fin Auth, Rev Bonds (Admiral at the Lake Proj), Ser 2010A,
8.000%, 5–15–40		13,000		14,366
IL Fin Auth, Rev Bonds (Lutheran Home and Svs Oblig Group), Ser 2012,
5.625%, 5–15–42		5,300		5,503
IL Fin Auth, Rev Bonds (Navistar Intl Corp. Proj), Ser 2010,
6.500%, 10–15–40		6,500		6,987
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2009,
7.875%, 3–1–32		500		511
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2010,
7.500%, 3–1–32		1,500		1,526
SW IL Dev Auth, Local Govt Prog Rev Bonds (City of Belleville-Carlyle/Green Mount Redev Proj), Ser 2011A,
7.000%, 7–1–41		6,000		6,159
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2008,
7.000%, 12–1–22		1,410		1,492
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2009,
8.000%, 1–15–22		165		167
SW IL Dev Auth, Local Govt Prog Rev Rfdg Bonds (Granite City Proj), Ser 2012,
5.250%, 3–1–23		3,365		3,420

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SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois (Continued)
Upper IL River Vly Dev Auth (Pleasant View Luther Home Proj), Rev Bonds, Ser 2010:
7.250%, 11–15–40	$	1,100	$	1,148
7.375%, 11–15–45		1,500		1,563
Upper IL River Vly Dev Auth, Multi-Fam Hsng Rev Bonds (Deer Park of Huntley Proj), Ser 2012,
6.500%, 12–1–32		4,930		5,113
Vlg of Bridgeview, Cook Cnty, IL, GO Bonds, Ser 2015A:
5.750%, 12–1–35		2,705		2,523
5.625%, 12–1–41		3,365		3,035
Vlg of Bridgeview, Cook Cnty, IL, GO Rfdg Bonds, Ser 2014A,
5.500%, 12–1–43		1,500		1,369
Vlg of East Dundee, Kane and Cook Cnty, IL, Ltd. Oblig Tax Incr Rev Bonds (Route 25 South Redev Proj), Ser 2012,
5.625%, 12–1–31		1,505		1,501
Vlg of Riverdale, Cook Cnty, IL, Unlimited Tax GO Bonds, Ser 2011,
8.000%, 10–1–36		9,785		10,440
				94,773
Indiana – 3.7%
City of Carmel, IN, Rev Bonds, Ser 2012A:
7.000%, 11–15–27		1,575		1,728
7.000%, 11–15–32		2,000		2,179
7.125%, 11–15–42		7,500		8,179
IN Fin Auth, Midwestn Disaster Relief Rev Bonds (OH Vly Elec Corp. Proj), Ser 2012A,
5.000%, 6–1–39		7,000		7,126
Lake Station 2008 Bldg Corp., Lake Station, IN, First Mtg Bonds, Ser 2010,
6.000%, 7–15–27		3,170		3,375
Terre Haute, IN, Rev Bonds (Westminister Vlg Proj), Ser 2012,
6.000%, 8–1–39		5,000		5,054
Whitestown, IN, Econ Dev Tax Incr Rev Bonds (Perry Indl Park and Whitestown Crossing Proj), Ser 2010A,
7.000%, 2–1–30		1,880		2,134
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Standard Avenue Proj), Ser 2006,
5.350%, 1–15–27		2,725		2,725
Whiting, IN, Redev Dist Tax Incr Rev Bonds, Ser 2016,
4.000%, 1–15–32		1,600		1,508
				34,008
Kansas – 1.5%
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009:
6.250%, 9–1–24		1,145		1,192
7.000%, 9–1–38		500		528

MUNICIPAL BONDS (Continued)	Principal		Value
Kansas (Continued)
Atchison, KS, Hosp Rev Bonds (Atchison Hosp Assoc), Ser 2009 (Bloomberg Fair Value Yield Index for the Qualified “A” Rated Municipal Index 5-Year Maturity plus 290 bps),
4.480%, 9–1–30 (E)	$	1,000	$	1,018
Kansas City, Wyandotte Cnty, KS, Unif Govt Spl Oblig Rev Sales Tax Bonds (Vacation Vlg Proj), Ser 2015A,
5.750%, 9–1–32		4,000		4,033
Lawrence, KS (The Bowersock Mills & Power Co. Hydroelec Proj), Indl Rev Bonds (Recovery Zone Fac Bonds), Ser 2010A,
7.625%, 8–1–37		4,000		4,180
Unif Govt of Wyandotte Cnty, Kansas City, KS, Spl Oblig Rfdg and Impvt Rev Bonds (Wyandotte Plaza Redev Proj), Ser 2016,
5.000%, 12–1–34		3,000		3,038
				13,989
Kentucky – 0.7%
KY Pub Trans Infra Auth, First Tier Toll Rev Bonds, Ser 2013A,
5.750%, 7–1–49		4,000		4,457
Murray, KY, Hosp Fac Rev Bonds (Murray-Calloway Cnty Pub Hosp Corp. Proj), Ser 2010,
6.375%, 8–1–40		2,000		2,126
				6,583
Louisiana – 0.5%
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Rev and Rfdg Bonds (CDF Hlthcare of LA LLC Proj), Ser 2015A,
5.625%, 6–1–45		5,000		5,009
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj - Phase IIA), Ser 2014A,
8.375%, 7–1–39 (D)		9,379		—	*
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj), Ser 2013B,
10.500%, 7–1–39 (D)		4,306		—	*
				5,009
Maryland – 0.1%
MD Econ Dev Corp., Econ Dev Rev Bonds (Terminal Proj), Ser B,
5.750%, 6–1–35		500		535
Massachusetts – 1.5%
MA Port Auth, Spl Fac Rev Bonds (Delta Air Lines, Inc. Proj), Ser 2001B (Auction Rate Sec) (Insured by AMBAC) (BMA Index*2.65),
2.173%, 1–1–31 (E)		15,000		13,800

MUNICIPAL BONDS (Continued)	Principal		Value
Michigan – 2.1%
Detroit, MI, GO Bonds, Ser 2004-A (1) (Insured by AMBAC),
5.250%, 4–1–23	$	220	$	221
Econ Dev Corp. of Oakland Cnty, Ltd. Oblig Rev Rfdg Bonds (The Roman Catholic Archdiocese of Detroit), Ser 2011,
6.500%, 12–1–20		3,485		3,613
MI Fin Auth, Hosp Rev and Rfdg Bonds (Presbyterian Vlg of MI), Ser 2015,
5.250%, 11–15–35		3,000		3,135
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev and Rev Rfdg Bonds (MI Technical Academy Proj), Ser 2012:
7.100%, 10–1–31 (D)		1,000		240
7.450%, 10–1–41 (D)		2,000		480
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev Bonds (Hanley Intl Academy, Inc. Proj), Ser 2010A,
6.125%, 9–1–40		4,535		4,711
MI Pub Edu Fac Auth, Ltd. Oblig Rev Bonds (Old Redford Academy Proj), Ser 2005A,
5.875%, 12–1–30		1,720		1,720
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Ser 2008C,
0.000%, 6–1–58 (C)		50,000		1,232
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Sr Current Int Bonds, Ser 2007A,
5.125%, 6–1–22		3,635		3,619
				18,971
Minnesota – 0.4%
Minneapolis Hlth Care Sys, Rev Bonds (Fairview Hlth Svc), Ser 2008B,
6.500%, 11–15–38		3,675		3,880
Missouri – 1.9%
Arnold, MO, Real Ppty Tax Incr Rev Bonds (Arnold Triangle Redev Proj), Ser 2009A,
7.750%, 5–1–28		395		424
Belton, MO, Tax Incr Rev Bonds (Belton Marketplace Redev Proj), Ser 2012,
6.375%, 12–1–29		820		829
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A,
6.125%, 12–1–36		200		155
Grindstone Plaza Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A:
5.250%, 10–1–21		250		246
5.400%, 10–1–26		385		364
5.500%, 10–1–31		425		389
5.550%, 10–1–36		325		289
Jennings, MO, Tax Incr and Cmnty Impvt Rfdg Rev Bonds (Northland Redev Area Proj), Ser 2006,
5.000%, 11–1–23		1,060		1,015

104 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Missouri (Continued)
Lakeside 370 Levee Dist (St. Charles Cnty, MO), Levee Dist Impvt Bonds, Ser 2008:
0.000%, 4–1–55 (C)	$	988	$	142
5.750%, 4–1–55		621		566
Land Clearance for Redev Auth of St. Louis, Recovery Zone Fac Bonds (Kiel Opera House Proj), Ser 2010B,
7.000%, 9–1–35		885		904
Lee’s Summit, MO, Tax Incr Rev Bonds (Summit Fair Proj), Ser 2011,
7.250%, 4–1–30		5,000		5,190
Meadows Trans Dev Dist (Lake Saint Louis, MO), Ser 2010,
5.400%, 5–1–35		660		667
St. Louis Muni Fin Corp., Compound Int Leasehold Rev Bonds (Convention Ctr Cap Impvt Proj), Ser 2010A (Insured by AGM):
0.000%, 7–15–36 (C)		750		362
0.000%, 7–15–37 (C)		1,500		692
Tax Incr Fin Comsn of Kansas City, MO, Tax Incr Rev Bonds (Brywood Ctr Proj), Ser 2010A,
8.000%, 4–1–33 (D)		3,950		1,381
The Indl Dev Auth of Lee’s Summit, MO, Infra Fac Rev Bonds (Kensington Farms Impvt Proj), Ser 2007,
5.750%, 3–1–29(D)		1,000		615
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007,
6.850%, 4–1–29		200		205
The Indl Dev Auth of St. Joseph, MO, Hlthcare Rev Bonds (Living Cmnty of St. Joseph Proj), Ser 2002,
7.000%, 8–15–32		2,915		2,917
				17,352
Nebraska – 1.0%
Cent Plains Enrg Proj, Gas Proj Rev Bonds (Proj No. 3), Ser 2012:
5.250%, 9–1–37		5,000		5,540
5.000%, 9–1–42		3,000		3,263
				8,803
Nevada – 0.0%
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008,
8.000%, 12–1–38		265		287
New Hampshire – 0.3%
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A,
6.875%, 7–1–41		2,300		2,571
New Jersey – 2.6%
NJ Econ Dev Auth, Cigarette Tax Rev Rfdg Bonds, Ser 2012:
5.000%, 6–15–26		1,000		1,088

MUNICIPAL BONDS (Continued)	Principal		Value
New Jersey (Continued)
5.000%, 6–15–28	$	1,000	$	1,079
5.000%, 6–15–29		500		537
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds (Univ Hosp Issue), Ser 2015A,
5.000%, 7–1–46		2,355		2,627
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007-1A,
5.000%, 6–1–41		13,750		13,445
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007-1A Sr Current Int Bonds,
4.750%, 6–1–34		5,000		4,887
				23,663
New Mexico – 0.3%
NM Hosp Equip Loan Council, Hosp Impvt and Rfdg Rev Bonds (Gerald Champion Rgnl Med Ctr Proj), Ser 2012A,
5.500%, 7–1–42		2,750		2,986
New York – 6.4%
Brooklyn Arena Local Dev Corp., PILOT Rev Rfdg Bonds (Barclays Ctr), Ser 2016A (Insured by AGM),
5.000%, 7–15–42		2,000		2,238
Build NYC Res Corp., Rev Bonds (Albert Einstein Sch of Medicine, Inc. Proj), Ser 2015,
5.500%, 9–1–45		2,400		2,642
Dormitory Auth, Sch Dist Rev Bond Fin Prog, Ser 2010A (Insured by AGM),
5.000%, 10–1–22		1,000		1,108
Glen Cove Local Econ Assistance Corp., Convertible Cap Apprec Rev Bonds (Garvies Point Pub Impvt Proj), Ser 2016C,
0.000%, 1–1–55 (C)		5,000		3,808
MTA Hudson Rail Yards Trust Oblig, Ser 2016A,
5.000%, 11–15–56		5,000		5,603
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A2,
6.500%, 1–1–32		5,269		5,361
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A4,
6.700%, 1–1–49		9,000		9,158
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A5,
6.700%, 1–1–49		2,179		2,217
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014B,
5.500%, 7–1–20		1,466		1,490

MUNICIPAL BONDS (Continued)	Principal		Value
New York (Continued)
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014C,
2.000%, 1–1–49	$	7,885	$	1,314
Nassau Cnty Tob Stlmnt Corp., Tob Stlmnt Asset-Bkd Bonds, Ser 2006A-3 Sr Current Int Bonds,
5.125%, 6–1–46		7,000		6,982
NY Liberty Dev Corp., Rev Bonds (3 World Trade Center Proj), Ser 2014,
5.000%, 11–15–44		5,000		5,458
The Orange Co. Funding Corp. (NY), Assisted Living Residence Rev Bonds (The Hamlet at Wallkill Assisted Living Proj), Ser 2012,
6.500%, 1–1–46		11,500		11,770
				59,149
North Carolina – 0.2%
NC Med Care Comsn, Ret Fac First Mtg Rev Bonds (Galloway Ridge Proj), Ser 2010A,
6.000%, 1–1–39		1,520		1,580
Ohio – 1.6%
Cleveland-Cuyahoga Cnty Port Auth, Dev Rev Bonds (Flats East Dev Proj), Ser 2010B,
7.000%, 5–15–40		2,490		2,716
Cnty of Muskingum, OH, Hosp Fac Rev Bonds (Genesis Hlth Care Sys Oblig Group Proj), Ser 2013,
5.000%, 2–15–48		5,000		5,193
Columbus-Franklin Cnty Fin Auth, Dev Rev Bonds (Cent OH Rgnl Bond Fund), (One Neighborhood Proj), Ser 2010A,
6.500%, 11–15–39		1,225		1,228
Greene Cnty Port Auth, Adult Svc Fac Rev Bonds (Greene, Inc. Proj), Ser 2009,
7.500%, 12–1–33		500		569
SE OH Port Auth, Hosp Fac Rev Rfdg and Impvt Bonds (Mem Hlth Sys of OH), Ser 2012,
6.000%, 12–1–42		3,750		4,121
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (Toledo Sch for the Arts Proj), Ser 2007B,
5.500%, 5–15–28		755		757
				14,584
Oklahoma – 1.0%
OK Cnty Fin Auth, Ret Fac Rev Bonds (Concordia Life Care Cmnty), Ser 2005:
6.125%, 11–15–25		1,860		1,860
6.000%, 11–15–38		7,495		7,325
				9,185

2017 SEMIANNUAL REPORT 105

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SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Oregon – 0.5%
Hosp Fac Auth of Salem, OR, Rev Rfdg Bonds (Cap Manor, Inc.), Ser 2012,
6.000%, 5–15–42	$	1,900	$	2,075
OR Fac Auth, Rev Bonds (Concordia Univ Proj), Ser 2010A:
6.125%, 9–1–30		885		1,010
6.375%, 9–1–40		1,750		2,010
				5,095
Pennsylvania – 6.4%
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2010,
6.125%, 1–1–45		5,000		5,187
Delaware Cnty Indl Dev Auth, Charter Sch Rev Bonds (Chester Cmnty Charter Sch Proj), Ser 2010A,
6.125%, 8–15–40		11,750		10,734
PA Higher Edu Fac Auth, Rev Bonds (Edinboro Univ Fndtn Student Hsng Proj at Edinboro Univ of PA), Ser 2010,
6.000%, 7–1–43		2,530		2,860
PA Higher Edu Fac Auth, Student Hsng Rev Bonds (Univ Ppty, Inc. Student Hsng Proj at East Stroudsburg Univ of PA), Ser 2010,
6.000%, 7–1–21		1,000		1,086
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009E (SIFMA Municipal Swap Index plus 100 bps),
0.000%, 12–1–38 (E)		13,000		16,096
Philadelphia Auth Indl Dev, Rev Bonds (Global Leadership Academy Charter Sch Proj), Ser 2010,
6.375%, 11–15–40		1,000		1,055
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011:
7.150%, 12–15–36		6,000		6,691
7.625%, 12–15–41		6,925		7,842
Philadelphia Auth Indl Dev, Rev Bonds (New Foundations Charter Sch Proj), Ser 2012,
6.625%, 12–15–41		3,500		3,960
Philadelphia, PA, Gas Works Rev Bonds (1998 Gen Ordinace), Ninth Ser,
5.250%, 8–1–40		755		824
Scranton-Lackawanna Hlth and Welfare Auth, Univ Rev Bonds (Marywood Univ Proj), Ser 2016,
5.000%, 6–1–46		2,265		2,282
The Borough of Langhorne Manor, Higher Edu and Hlth Auth (Bucks Cnty, PA), Hosp Rev Bonds (Lower Bucks Hosp), Ser 1992,
7.300%, 7–1–12 (D)		70		15
				58,632

MUNICIPAL BONDS (Continued)	Principal		Value
South Carolina – 0.2%
Piedmont Muni Pwr Agy, SC, Elec Rev Rfdg Bonds, Ser 2008C,
5.750%, 1–1–34	$	1,550	$	1,767
Tennessee – 0.2%
Metro Nashville Arpt Auth, Arpt Impvt Rev Bonds, Ser 2015A,
5.000%, 7–1–40		2,000		2,288
Texas – 16.3%
Arlington, TX, Higher Edu Fin Corp., Edu Rev Bonds (Wayside Sch), Ser 2016A,
4.375%, 8–15–36		640		638
Cap Area Cultural Edu Fac Fin Corp., Rev Bonds (The Roman Catholic Diocese of Austin), Ser 2005B,
6.125%, 4–1–45		3,150		3,456
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Bonds, Ser 2009A,
9.500%, 3–1–33		500		552
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2010:
0.000%, 1–1–36 (C)		500		242
0.000%, 1–1–40 (C)		500		202
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2015A,
5.000%, 1–1–45		4,000		4,447
Cent TX Rgnl Mobility Auth, Sub Lien Rev Rfdg Bonds, Ser 2013:
5.000%, 1–1–33		6,000		6,579
5.000%, 1–1–42		3,000		3,261
Dallas/Fort Worth Intl Arpt, Joint Rev Impvt Bonds, Ser 2013A,
5.000%, 11–1–45		8,000		8,636
Grand Prkwy Trans Corp., First Tier Toll Rev Bonds, Ser 2013A,
5.500%, 4–1–53		5,000		5,676
Hackberry, TX, Combination Spl Assmt and Contract Rev Road Bonds (Hackberry Hidden Cove Pub Impvt Dist No. 2 Proj), Ser 2009A:
8.625%, 9–1–29		120		137
9.000%, 9–1–38		1,245		1,430
Harris Cnty Cultural Edu Fac Fin Corp., Rev Rfdg Bonds (Space Ctr Houston Proj), Sr Ser 2009,
7.000%, 8–15–28		500		529
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008:
6.000%, 2–15–33		2,000		2,019
6.000%, 2–15–38		250		252
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A,
6.875%, 5–15–41		3,800		4,559
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2011B:
5.000%, 7–1–25		1,000		1,129
5.000%, 7–1–26		2,680		3,025

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
La Vernia Higher Edu Fin Corp. (Winfree Academy Charter Sch), Edu Rev Bonds, Ser 2009,
9.000%, 8–15–38	$	2,395	$	2,536
La Vernia Higher Edu Fin Corp., Edu Rev Bonds (KIPP, Inc.), Ser 2009A,
6.375%, 8–15–44		2,000		2,195
Mission Econ Dev Corp., Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff LLC Proj), Ser 2011,
6.875%, 12–1–24		2,540		2,560
New Hope Cultural Edu Fac Fin Corp., Edu Rev Bonds (Jubilee Academic Ctr), Ser 2016A,
5.000%, 8–15–46		4,000		4,007
New Hope Cultural Edu Fac Fin Corp., TX Ret Fac Rev Bonds (Carillon Lifecare Cmnty Proj), Ser 2016:
5.000%, 7–1–36		1,250		1,289
5.000%, 7–1–46		2,000		2,032
North TX Twy Auth, Spl Proj Sys Rev Bonds Convertible Cap Apprec Bonds, Ser 2011C,
0.000%, 9–1–43 (C)		9,000		9,694
Pharr, TX, Higher Edu Fin Auth, Edu Rev Bonds (Idea Pub Sch), Ser 2009A:
6.250%, 8–15–29		350		383
6.500%, 8–15–39		200		220
Sanger, TX, Indl Dev Corp., Indl Dev Rev Bonds (TX Pellets Proj), Ser 2012B,
8.000%, 7–1–38 (D)		12,870		3,089
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Air Force Vig Oblig Group Proj), Ser 2016,
5.000%, 5–15–45		4,000		4,185
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2007:
5.500%, 11–15–22		2,000		2,006
5.625%, 11–15–27		250		251
5.750%, 11–15–37		6,840		6,850
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Mirador Proj), Ser 2010A:
4.625%, 11–15–41		2,500		2,098
4.875%, 11–15–48		5,000		4,213
TX Muni Gas Acquisition and Supply Corp. III, Gas Supply Rev Bonds, Ser 2012,
5.000%, 12–15–32		3,000		3,333
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (LBJ Infra Group LLC IH-635 Managed Lanes Proj), Ser 2010:
7.500%, 6–30–32		2,000		2,295
7.500%, 6–30–33		2,700		3,078
7.000%, 6–30–40		11,430		12,924

106 SEMIANNUAL REPORT 2017

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

SEPTEMBER 30, 2017 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009,
6.875%, 12–31–39	$	12,975	$	14,428
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Odyssey Academy, Inc.), Ser 2010A,
7.125%, 2–15–40		2,000		2,281
TX Trans Comsn, Cent TX Tpk Sys First Tier Rev Rfdg Bonds, Ser 2012-A,
5.000%, 8–15–41		10,000		11,131
Wise Cnty, TX, Lease Rev Bonds (Parker Cnty Jr College Dist Proj), Ser 2011,
8.000%, 8–15–34		5,000		5,741
				149,588
Utah – 0.6%
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Davis Preparatory Academy), Ser 2010,
6.250%, 7–15–30		1,015		1,079
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Star Academy Proj), Ser 2010B,
7.000%, 7–15–45		2,100		2,264
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (Paradigm High Sch), Ser 2010,
6.375%, 7–15–40		2,160		2,259
				5,602
Virgin Islands – 0.4%
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Diageo Proj), Ser 2009A:
6.625%, 10–1–29		3,135		2,116
6.750%, 10–1–37		3,000		2,059
				4,175
Virginia – 2.7%
Econ Dev Auth of James City Cnty, VA, Residential Care Fac Rev Bonds (VA Utd Methodist Homes of Williamsburg, Inc.), Ser 2013A:
6.000%, 6–1–43		3,029		3,007
2.000%, 10–1–48		983		46
Indl Dev Auth of Smyth Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009A,
8.000%, 7–1–38		450		481
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C:
7.250%, 7–1–19		240		255
7.500%, 7–1–29		25		27
Mosaic Dist Cmnty Dev Auth, Fairfax Cnty, VA, Rev Bonds, Ser 2011A,
6.875%, 3–1–36		4,300		4,728

MUNICIPAL BONDS (Continued)	Principal		Value
Virginia (Continued)
VA Small Business Fin Auth, Sr Lien Rev Bonds (Elizabeth River Crossing Opco LLC Proj), Ser 2012:
6.000%, 1–1–37	$	6,650	$	7,556
5.500%, 1–1–42		7,500		8,349
				24,449
Washington – 1.3%
Port of Sunnyside, Yakima Cnty, WA, Rev Bonds (Indl Wastewater Treatment Sys), Ser 2008,
6.625%, 12–1–21		1,610		1,646
WA Hlth Care Fac Auth, Rev Bonds (Cent WA Hlth Svcs Assoc), Ser 2009:
6.250%, 7–1–24		795		862
WA State Hsng Fin Comsn (Rockwood Ret Cmnty Proj), Nonprofit Hsng Rev and Rfdg Rev Bonds, Ser 2014A,
7.500%, 1–1–49		8,000		9,371
				11,879
West Virginia – 0.4%
Brooke Cnty, WV, Rev Bonds (Bethany College), Ser 2011A,
6.750%, 10–1–37		4,000		4,068
Wisconsin – 2.5%
Pub Fin Auth, Edu Rev Bonds (NC Charter Edu Fndtn Proj), Ser 2016A,
5.000%, 6–15–46		6,000		5,770
Pub Fin Auth, Higher Edu Fac Rev Bonds (Wittenberg Univ Proj), Ser 2016,
5.250%, 12–1–39		4,000		3,857
Pub Fin Auth, Sr Arpt Fac Rev and Rfdg Bonds (TrIps Obligated Group), Ser 2012B,
5.000%, 7–1–42		4,000		4,281
WI Hlth and Edu Fac Auth, Rev Bonds (Beloit College), Ser 2010A,
6.125%, 6–1–35		1,220		1,380
WI Pub Fin Auth, Edu Rev Bonds (Cornerstone Charter Academy Proj), Ser 2016A,
5.125%, 2–1–46		4,000		3,805
WI Pub Fin Auth, Edu Rev Bonds (Triad Edu Svc), Ser 2015A,
5.500%, 6–15–45		4,000		4,040
				23,133
TOTAL MUNICIPAL BONDS – 94.1%			$	865,742
(Cost: $837,648)
SHORT-TERM SECURITIES
Commercial Paper (F) – 1.3%
BorgWarner, Inc.,
1.380%, 10–5–17		3,000		2,999

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (F) (Continued)
E.I. du Pont de Nemours and Co.,
1.361%, 10–4–17	$	5,000	$	4,999
General Mills, Inc.,
1.510%, 10–10–17		4,000		3,999
				11,997
Master Note – 0.0%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10–4–17 (G)		228		228
Municipal Obligations – 2.3%
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.) (BVAL plus 13 bps),
0.960%, 10–7–17 (G)		2,250		2,250
Exempla Gen Impvt Dist of Lafayette, CO, Spl Impvt Dist No. 02-01, Spl Assmt Rev Rfdg Bonds, Ser 2002 (GTD by Wells Fargo Bank N.A.) (BVAL plus 11 bps),
0.950%, 10–7–17 (G)		1,575		1,575
Greenville Hosp Sys Board of Trustees, Hosp Rfdg Rev Bonds, Ser 2008B (GTD by U.S. Bank N.A.) (BVAL plus 10 bps),
0.940%, 10–7–17 (G)		4,500		4,500
IL Fin Auth, Var Rate Demand Rev Bonds (North Park Univ Proj), Ser 2005 (GTD by JPMorgan Chase Bank N.A.) (BVAL plus 22 bps),
0.940%, 10–7–17 (G)		2,000		2,000
Minneapolis, MN, Hsng Dev, Rfdg Rev Bonds (One Ten Grant Proj), Ser 1989 (GTD by FNMA) (BVAL plus 8 bps),
0.920%, 10–7–17 (G)		3,845		3,845
NJ Hlth Care Fac Fin Auth, Rev Bonds, AHS Hosp Corp. Issue, Ser 2008C (GTD by JPMorgan Chase & Co.) (BVAL plus 9 bps),
0.910%, 10–7–17 (G)		4,500		4,500
WI Hlth and Edu Fac Auth, Var Rate Demand Rev Bonds (Wausau Hosp, Inc.), Ser 1998B (GTD by JPMorgan Chase Bank N.A.) (BVAL plus 25 bps),
0.970%, 10–7–17 (H)		2,200		2,200
				20,870
TOTAL SHORT-TERM SECURITIES – 3.6%			$	33,095
(Cost: $33,096)
TOTAL INVESTMENT SECURITIES – 98.3%			$	903,949
(Cost: $874,742)
CASH AND OTHER ASSETS, NET OF LIABILITIES (H) – 1.7%				15,312
NET ASSETS – 100.0%			$	919,261

2017 SEMIANNUAL REPORT 107

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

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) 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.

(C) Zero coupon bond.

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

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2017. Description of the reference rate and spread, if applicable, are included in the security description.

(F) Rate shown is the yield to maturity at September 30, 2017.

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

(H) Cash of $607 has been pledged as collateral on open futures contracts.

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

The following futures contracts were outstanding at September 30, 2017 (contracts unrounded):

Description	Type		Number of Contracts		Expiration Date		Notional Amount		Value			Unrealized Appreciation
U.S. Treasury Long Bond		Short		184		12–29–17		18,400	$	(28,118	)	$	457

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	—	$	—	$	1,841
Corporate Debt Securities		—		3,271		—
Municipal Bonds		—		865,742		—
Short-Term Securities		—		33,095		—
Total	$	—	$	902,108	$	1,841
Futures Contracts	$	457	$	—	$	—

During the period ended September 30, 2017, there were no transfers between any levels.

The following acronyms are used throughout this schedule:

AMBAC = American Municipal Bond Assurance Corp.

AGM = Assured Guaranty Municipal

BVAL = Bloomberg Valuation Benchmark Curve

FNMA = Federal National Mortgage Association

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

PIK = Payment in Kind

SIFMA = Securities Industrial and Financial Markets Association

See Accompanying Notes to Financial Statements.

108 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY SMALL CAP CORE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	97.3%
Information Technology	17.1%
Financials	15.8%
Industrials	13.0%
Consumer Discretionary	12.4%
Health Care	11.1%
Consumer Staples	7.8%
Materials	7.1%
Energy	4.8%
Real Estate	3.5%
Utilities	2.4%
Telecommunication Services	2.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.7%

Lipper Rankings

Category: Small-Cap Core Funds	Rank	Percentile
1 Year	756/1,007		75
3 Year	219/831		27
5 Year	209/707		30
10 Year	153/511		30

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

Top 10 Equity Holdings

Company	Sector	Industry
Webster Financial Corp.	Financials	Regional Banks
Tivity Health, Inc.	Health Care	Health Care Services
Bob Evans Farms, Inc.	Consumer Discretionary	Restaurants
Visteon Corp.	Consumer Discretionary	Auto Parts & Equipment
Laredo Petroleum Holdings, Inc.	Energy	Oil & Gas Exploration & Production
Pinnacle Foods, Inc.	Consumer Staples	Packaged Foods & Meats
Woodward, Inc.	Industrials	Industrial Machinery
Take-Two Interactive Software, Inc.	Information Technology	Home Entertainment Software
Sensient Technologies Corp.	Materials	Specialty Chemicals
Saia, Inc.	Industrials	Trucking

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

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

2017 SEMIANNUAL REPORT 109

SCHEDULE OF INVESTMENTS IVY SMALL CAP CORE FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 4.8%
Visteon Corp. (A)		239	$	29,618
Homefurnishing Retail – 2.2%
Restoration Hardware Holdings, Inc. (A)		189		13,298
Restaurants – 5.4%
Bob Evans Farms, Inc.		386		29,928
Buffalo Wild Wings, Inc. (A)		29		3,087
Red Robin Gourmet Burgers, Inc. (A)		7		436
				33,451
Total Consumer Discretionary – 12.4%				76,367
Consumer Staples
Packaged Foods & Meats – 6.2%
Pinnacle Foods, Inc.		482		27,579
Post Holdings, Inc. (A)		122		10,743
				38,322
Soft Drinks – 1.6%
Coca-Cola Bottling Co. Consolidated		44		9,519
Total Consumer Staples – 7.8%				47,841
Energy
Oil & Gas Exploration & Production – 4.8%
Laredo Petroleum Holdings, Inc. (A)		2,290		29,615
Total Energy – 4.8%				29,615
Financials
Life & Health Insurance – 1.5%
American Equity Investment Life Holding Co.		305		8,875
Multi-Line Insurance – 0.2%
Kemper Corp.		28		1,474
Regional Banks – 11.6%
Chemical Financial Corp.		185		9,667
FCB Financial Holdings, Inc., Class A (A)		198		9,583
Pinnacle Financial Partners, Inc.		138		9,206
Webster Financial Corp.		583		30,616
Western Alliance Bancorp. (A)		232		12,301
				71,373
Thrifts & Mortgage Finance – 2.5%
MGIC Investment Corp. (A)		674		8,441
Radian Group, Inc.		357		6,674
				15,115
Total Financials – 15.8%				96,837

COMMON STOCKS (Continued)	Shares		Value
Health Care
Health Care Equipment – 1.4%
Insulet Corp. (A)		158	$	8,692
Health Care Facilities – 1.2%
HealthSouth Corp.		156		7,230
Health Care Services – 4.9%
Tivity Health, Inc. (A)		748		30,521
Health Care Technology – 3.6%
Evolent Health, Inc., Class A (A)		879		15,653
Omnicell, Inc. (A)		124		6,313
				21,966
Total Health Care – 11.1%				68,409
Industrials
Construction Machinery & Heavy Trucks – 2.2%
Navistar International Corp. (A)		305		13,459
Electrical Components & Equipment – 0.2%
Generac Holdings, Inc. (A)		28		1,271
Industrial Machinery – 4.4%
Woodward, Inc.		346		26,891
Trading Companies & Distributors – 1.5%
Beacon Roofing Supply, Inc. (A)		186		9,530
Trucking – 4.7%
Saia, Inc. (A)		272		17,056
YRC Worldwide, Inc. (A)		836		11,532
				28,588
Total Industrials – 13.0%				79,739
Information Technology
Application Software – 2.3%
8x8, Inc. (A)		490		6,614
Everbridge, Inc. (A)		296		7,814
				14,428
Data Processing & Outsourced Services – 1.3%
Conduent, Inc. (A)		527		8,258
Home Entertainment Software – 4.6%
Take-Two Interactive Software, Inc. (A)		242		24,732
Zynga, Inc. (A)		859		3,246
				27,978
Internet Software & Services – 1.7%
Q2 Holdings, Inc. (A)		246		10,260
Semiconductors – 2.2%
Integrated Device Technology, Inc. (A)		510		13,551
Systems Software – 2.4%
Tableau Software, Inc., Class A (A)		199		14,932

COMMON STOCKS (Continued)	Shares		Value
Technology Distributors – 2.6%
Synnex Corp.		126	$	15,960
Total Information Technology – 17.1%				105,367
Materials
Commodity Chemicals – 1.1%
Cabot Corp.		120		6,696
Diversified Metals & Mining – 1.2%
Compass Minerals International, Inc.		113		7,325
Specialty Chemicals – 4.0%
Innospec, Inc.		67		4,100
Sensient Technologies Corp.		268		20,579
				24,679
Steel – 0.8%
TimkenSteel Corp. (A)		310		5,121
Total Materials – 7.1%				43,821
Real Estate
Diversified Real Estate Activities – 0.7%
CoreSite Realty Corp.		36		4,073
Industrial REITs – 1.6%
First Industrial Realty Trust, Inc.		128		3,860
STAG Industrial, Inc.		213		5,843
				9,703
Real Estate Services – 1.2%
Realogy Holdings Corp.		231		7,605
Total Real Estate – 3.5%				21,381
Telecommunication Services
Alternative Carriers – 2.3%
Vonage Holdings Corp. (A)		1,732		14,098
Total Telecommunication Services – 2.3%				14,098
Utilities
Electric Utilities – 1.2%
ALLETE, Inc.		93		7,195
Gas Utilities – 1.2%
South Jersey Industries, Inc.		60		2,078
Spire, Inc.		76		5,674
				7,752
Total Utilities – 2.4%				14,947
TOTAL COMMON STOCKS – 97.3%			$	598,422
(Cost: $483,307)

110 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY SMALL CAP CORE FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (B) – 2.3%
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.),
1.350%, 10-4-17	$	6,500	$	6,499
Kroger Co. (The),
1.300%, 10-2-17		7,340		7,339
				13,838
Master Note – 0.6%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10-4-17 (C)		3,815		3,815
TOTAL SHORT-TERM SECURITIES – 2.9%			$	17,653
(Cost: $17,654)
TOTAL INVESTMENT SECURITIES – 100.2%			$	616,075
(Cost: $500,961)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)%				(1,373	)
NET ASSETS – 100.0%			$	614,702

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2017.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	598,422	$	—	$	—
Short-Term Securities		—		17,653		—
Total	$	598,422	$	17,653	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 111

PORTFOLIO HIGHLIGHTS IVY SMALL CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	94.8%
Information Technology	27.9%
Industrials	19.9%
Health Care	16.8%
Consumer Discretionary	15.2%
Financials	6.0%
Energy	3.5%
Materials	2.3%
Real Estate	2.2%
Consumer Staples	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	5.2%

Lipper Rankings

Category: Small-Cap Growth Funds	Rank	Percentile
1 Year	134/550		25
3 Year	124/493		26
5 Year	170/448		38
10 Year	48/337		15

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

Top 10 Equity Holdings

Company	Sector	Industry
AMN Healthcare Services, Inc.	Health Care	Health Care Services
Mercury Computer Systems, Inc.	Industrials	Aerospace & Defense
XPO Logistics, Inc.	Industrials	Air Freight & Logistics
RE/MAX Holdings, Inc., Class A	Real Estate	Real Estate Services
Booz Allen Hamilton Holding Corp.	Information Technology	IT Consulting & Other Services
Ultimate Software Group, Inc. (The)	Information Technology	Application Software
Beacon Roofing Supply, Inc.	Industrials	Trading Companies & Distributors
Acadia Healthcare Co., Inc.	Health Care	Health Care Facilities
Paycom Software, Inc.	Information Technology	Application Software
HubSpot, Inc.	Information Technology	Application Software

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

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

112 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY SMALL CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel Retail – 1.5%
Burlington Stores, Inc. (A)		172	$	16,419
Caleres, Inc.		6		198
				16,617
Auto Parts & Equipment – 1.0%
Visteon Corp. (A)		91		11,202
Distributors – 1.5%
Pool Corp.		153		16,508
General Merchandise Stores – 1.0%
Ollie’s Bargain Outlet Holdings, Inc. (A)		233		10,816
Homebuilding – 1.6%
Installed Building Products, Inc. (A)		279		18,099
Hotels, Resorts & Cruise Lines – 1.4%
Hilton Grand Vacations, Inc. (A)		415		16,028
Leisure Facilities – 0.9%
Vail Resorts, Inc.		43		9,720
Leisure Products – 0.5%
Nautilus Group, Inc. (The) (A)		296		5,001
Restaurants – 4.1%
Dave & Buster’s Entertainment, Inc. (A)		289		15,143
Texas Roadhouse, Inc., Class A		311		15,292
Wingstop, Inc.		481		15,997
				46,432
Specialty Stores – 1.7%
Five Below, Inc. (A)		258		14,153
Party City Holdco, Inc. (A)		399		5,404
				19,557
Total Consumer Discretionary – 15.2%				169,980
Consumer Staples
Packaged Foods & Meats – 1.0%
Lance, Inc.		290		11,042
Total Consumer Staples – 1.0%				11,042
Energy
Oil & Gas Equipment & Services – 2.4%
Keane Group, Inc. (A)		479		7,981
RPC, Inc.		597		14,807
U.S. Silica Holdings, Inc.		124		3,851
				26,639
Oil & Gas Exploration & Production – 1.1%
Centennial Resource Development, Inc., Class A (A)		263		4,717
Jagged Peak Energy, Inc. (A)		223		3,044
Petroleum Development Corp. (A)		110		5,393
				13,154
Total Energy – 3.5%				39,793

COMMON STOCKS (Continued)	Shares		Value
Financials
Regional Banks – 5.5%
Ameris Bancorp		222	$	10,651
Home BancShares, Inc.		675		17,022
SVB Financial Group (A)		78		14,604
Western Alliance Bancorp. (A)		355		18,849
				61,126
Thrifts & Mortgage Finance – 0.5%
LendingTree, Inc. (A)		23		5,622
Total Financials – 6.0%				66,748
Health Care
Health Care Equipment – 7.2%
Inogen, Inc. (A)		138		13,147
iRhythm Technologies, Inc. (A)		154		7,982
K2M Group Holdings, Inc. (A)		698		14,810
Nevro Corp. (A)		168		15,244
NuVasive, Inc. (A)		170		9,416
Penumbra, Inc. (A)		169		15,294
Tactile Systems Technology, Inc. (A)		150		4,649
				80,542
Health Care Facilities – 1.9%
Acadia Healthcare Co., Inc. (A)		456		21,781
Health Care Services – 4.9%
AMN Healthcare Services, Inc. (A)		719		32,842
Envision Healthcare Holdings, Inc. (A)		219		9,835
Teladoc, Inc. (A)		374		12,389
				55,066
Life Sciences Tools & Services – 0.8%
Cambrex Corp. (A)		156		8,564
Managed Health Care – 1.6%
HealthEquity, Inc. (A)		352		17,784
Pharmaceuticals – 0.4%
Aerie Pharmaceuticals, Inc. (A)		99		4,819
Total Health Care – 16.8%				188,556
Industrials
Aerospace & Defense – 2.7%
Mercury Computer Systems, Inc. (A)		594		30,832
Agricultural & Farm Machinery – 0.7%
Toro Co. (The)		124		7,683
Air Freight & Logistics – 2.3%
XPO Logistics, Inc. (A)		384		26,007
Building Products – 0.8%
JELD-WEN Holding, Inc. (A)		238		8,471

COMMON STOCKS (Continued)	Shares		Value
Construction & Engineering – 1.6%
Dycom Industries, Inc. (A)		208	$	17,872
Diversified Support Services – 0.6%
Healthcare Services Group, Inc.		131		7,086
Industrial Machinery – 5.0%
John Bean Technologies Corp.		188		19,037
RBC Bearings, Inc. (A)		88		10,955
Timken Co. (The)		168		8,164
Woodward, Inc.		237		18,401
				56,557
Security & Alarm Services – 1.3%
Brink’s Co. (The)		174		14,651
Trading Companies & Distributors – 3.6%
Beacon Roofing Supply, Inc. (A)		441		22,601
Watsco, Inc.		110		17,678
				40,279
Trucking – 1.3%
Knight Transportation, Inc. (A)		344		14,289
Total Industrials – 19.9%				223,727
Information Technology
Application Software – 11.7%
BroadSoft, Inc. (A)		373		18,742
Ellie Mae, Inc. (A)		121		9,929
Globant S.A. (A)		249		9,973
HubSpot, Inc. (A)		235		19,769
Paycom Software, Inc. (A)		274		20,547
Tyler Technologies, Inc. (A)		88		15,392
Ultimate Software Group, Inc. (The) (A)		125		23,691
Zendesk, Inc. (A)		445		12,954
				130,997
Communications Equipment – 1.2%
Lumentum Holdings, Inc. (A)		235		12,783
Electronic Manufacturing Services – 1.0%
Fabrinet (A)		298		11,055
Internet Software & Services – 3.4%
Envestnet, Inc. (A)		44		2,229
Five9, Inc. (A)		585		13,977
Mimecast Ltd. (A)		98		2,785
Q2 Holdings, Inc. (A)		269		11,187
Shopify, Inc., Class A (A)		68		7,886
				38,064
IT Consulting & Other Services – 3.4%
Booz Allen Hamilton Holding Corp.		646		24,162
InterXion Holding N.V. (A)		280		14,250
				38,412

2017 SEMIANNUAL REPORT 113

SCHEDULE OF INVESTMENTS IVY SMALL CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Semiconductors – 3.8%
Integrated Device Technology, Inc. (A)		278	$	7,384
Monolithic Power Systems, Inc.		153		16,281
Power Integrations, Inc.		264		19,307
				42,972
Systems Software – 2.6%
Proofpoint, Inc. (A)		210		18,343
Varonis Systems, Inc. (A)		258		10,807
				29,150
Technology Distributors – 0.8%
Tech Data Corp. (A)		103		9,116
Total Information Technology – 27.9%				312,549
Materials
Construction Materials – 2.1%
Summit Materials, Inc., Class A (A)		471		15,079
U.S. Concrete, Inc. (A)		107		8,166
				23,245
Paper Products – 0.2%
KapStone Paper and Packaging Corp.		141		3,038
Total Materials – 2.3%				26,283

COMMON STOCKS (Continued)	Shares		Value
Real Estate
Real Estate Services – 2.2%
RE/MAX Holdings, Inc., Class A		382	$	24,251
Total Real Estate – 2.2%				24,251
TOTAL COMMON STOCKS – 94.8%			$	1,062,929
(Cost: $748,498)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 5.1%
BorgWarner, Inc.,
1.380%, 10-5-17	$	3,000		2,999
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.),
1.180%, 10-5-17		22,000		21,995
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.),
1.580%, 10-10-17		6,014		6,011
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.),
1.240%, 10-6-17		5,000		4,999
J.M. Smucker Co. (The),
1.371%, 10-6-17		5,000		4,999
L Oreal USA, Inc.,
1.170%, 10-2-17		5,000		5,000
Mondelez International, Inc.,
1.510%, 10-10-17		5,000		4,998

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper(B) (Continued)
Sysco Corp.,
1.350%, 10-2-17	$	6,540	$	6,539
				57,540
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10-4-17(C)		1,135		1,135
TOTAL SHORT-TERM SECURITIES – 5.2%			$	58 ,675
(Cost: $58,680)
TOTAL INVESTMENT SECURITIES – 100.0%			$	1,121,604
(Cost: $807,178)
LIABILITIES, NET OF CASH AND OTHER ASSETS – 0.0%				(3	)
NET ASSETS – 100.0%			$	1,121,601

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Rate shown is the yield to maturity at September 30, 2017.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 total return swap agreements were outstanding at September 30, 2017:

Underlying Security	Counterparty	Maturity Date		Notional Amount		Financing Fee(1)(2)		Value		Upfront Payments/ (Receipts)		Unrealized Appreciation
Biotech Custom Index	JPMorgan Chase Bank N.A.		01/09/2018	$	35,657		1-Month LIBOR less 50 bps	$	632	$	—	$	632

(1) The Fund pays the financing fee multiplied by the notional amount each month.

(2) At the termination date, a net cash flow is exchanged where the market-linked total return is equivalent to the return of the underlying security less a financing rate, if any. As the payer, a Fund would owe payments on any net positive total return, and would receive payments in the event of a negative total return.

114 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY SMALL CAP GROWTH FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

The following table represents security positions within the total return basket swap as of September 30, 2017:

Reference Entity	Shares			Notional Amount		Unrealized Appreciation
Kite Pharma Inc		—	*	$	2,923	$	52
Exact Sciences Corp		1			1,998		35
Aerie Pharmaceuticals Inc		1			1,696		30
Myriad Genetics Inc		1			1,444		25
Exelixis Inc		1			1,409		25
TESARO Inc		—	*		1,387		25
PRA Health Sciences Inc		—	*		1,354		24
INC Research Holdings Inc		—	*		1,189		21
Clovis Oncology Inc		—	*		1,158		20
Ligand Pharmaceuticals Inc		—	*		1,041		18
Amicus Therapeutics Inc		1			1,025		18
Nektar Therapeutics		1			993		18
Bluebird Bio Inc		—	*		975		17
Prothena Corp PLC		—	*		927		16
Halozyme Therapeutics Inc		1			904		16
Spark Therapeutics Inc		—	*		824		15
Sarepta Therapeutics Inc		—	*		812		14
Ultragenyx Pharmaceutical Inc		—	*		770		14
Sage Therapeutics Inc		—	*		740		13
Array BioPharma Inc		1			630		11
ImmunoGen Inc		1			570		10
Dynavax Technologies Corp		—	*		527		9
Portola Pharmaceuticals Inc		—	*		513		9
Avexis Inc		—	*		467		8
Repligen Corp		—	*		450		8
Acceleron Pharma Inc		—	*		435		8
Global Blood Therapeutics Inc		—	*		414		7
Dermira Inc		—	*		397		7
ZIOPHARM Oncology Inc		1			393		7
Vanda Pharmaceuticals Inc		—	*		379		7
Keryx Biopharmaceuticals Inc		1			376		7
Seres Therapeutics Inc		—	*		332		6
Progenics Pharmaceuticals Inc		1			326		6
Lexicon Pharmaceuticals Inc		—	*		324		6
Ironwood Pharmaceuticals Inc		—	*		318		6
Heron Therapeutics Inc		—	*		289		5

Reference Entity	Shares			Notional Amount		Unrealized Appreciation
Acorda Therapeutics Inc		—	*	$	284	$	5
Alder Biopharmaceuticals Inc		—	*		269		5
Inovio Pharmaceuticals Inc		1			267		5
Agios Pharmaceuticals Inc		—	*		263		5
ANI Pharmaceuticals Inc		—	*		261		5
Pacific Biosciences of California Inc		1			256		4
Five Prime Therapeutics Inc		—	*		251		4
Eagle Pharmaceuticals Inc/DE		—	*		247		4
Synergy Pharmaceuticals Inc		2			243		4
ACADIA Pharmaceuticals Inc		—	*		221		4
Juno Therapeutics Inc		—	*		207		4
Retrophin Inc		—	*		202		4
Ionis Pharmaceuticals Inc		—	*		202		4
Coherus Biosciences Inc		—	*		198		3
China Biologic Products Holdings Inc		—	*		175		3
PTC Therapeutics Inc		—	*		171		3
Amarin Corp PLC		1			163		3
AMAG Pharmaceuticals Inc		—	*		150		3
Novavax Inc		2			124		2
Achillion Pharmaceuticals Inc		—	*		108		2
Minerva Neurosciences Inc		—	*		96		2
Intrexon Corp		—	*		94		2
Merrimack Pharmaceuticals Inc		—	*		90		2
Radius Health Inc		—	*		89		2
Celldex Therapeutics Inc		1			81		1
Advaxis Inc		—	*		76		1
Intercept Pharmaceuticals Inc		—	*		51		1
XBiotech Inc		—	*		49		1
Ophthotech Corp		—	*		38		1
Sophiris Bio Inc		—	*		21		—	*
AquaBounty Technologies Inc		—	*		1		—	*
						$	632

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	1,062,929	$	—	$	—
Short-Term Securities		—		58,675		—
Total	$	1,062,929	$	58,675	$	—
Total Return Swaps	$	—	$	632	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 115

PORTFOLIO HIGHLIGHTS IVY TAX-MANAGED EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	99.0%
Information Technology	41.9%
Industrials	15.1%
Health Care	14.4%
Consumer Discretionary	12.8%
Consumer Staples	6.5%
Financials	3.9%
Energy	2.4%
Real Estate	2.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.0%

Lipper Rankings

Category: Large-Cap Growth Funds	Rank	Percentile
1 Year	475/658		73
3 Year	454/592		77
5 Year	300/532		57

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

Top 10 Equity Holdings

Company	Sector	Industry
Microsoft Corp.	Information Technology	Systems Software
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
salesforce.com, Inc.	Information Technology	Application Software
Alphabet, Inc., Class A	Information Technology	Internet Software & Services
Amazon.com, Inc.	Consumer Discretionary	Internet & Direct Marketing Retail
Visa, Inc., Class A	Information Technology	Data Processing & Outsourced Services
Facebook, Inc., Class A	Information Technology	Internet Software & Services
Adobe Systems, Inc.	Information Technology	Application Software
Stanley Black & Decker, Inc.	Industrials	Industrial Machinery
CME Group, Inc.	Financials	Financial Exchanges & Data

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

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

116 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY TAX-MANAGED EQUITY FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Cable & Satellite – 2.1%
Comcast Corp., Class A		70	$	2,682
Footwear – 0.9%
NIKE, Inc., Class B		24		1,240
Home Improvement Retail – 2.3%
Home Depot, Inc. (The)		19		3,059
Internet & Direct Marketing Retail – 7.5%
Amazon.com, Inc. (A)		6		5,410
Expedia, Inc.		13		1,842
priceline.com, Inc. (A)		1		2,477
				9,729
Total Consumer Discretionary – 12.8%				16,710
Consumer Staples
Hypermarkets & Super Centers – 0.4%
Costco Wholesale Corp.		3		534
Packaged Foods & Meats – 0.6%
Blue Buffalo Pet Products, Inc. (A)		26		748
Personal Products – 1.6%
Estee Lauder Co., Inc. (The), Class A		20		2,117
Soft Drinks – 2.0%
Monster Beverage Corp. (A)		47		2,572
Tobacco – 1.9%
Philip Morris International, Inc.		22		2,473
Total Consumer Staples – 6.5%				8,444
Energy
Oil & Gas Equipment & Services – 2.4%
Halliburton Co.		70		3,206
Total Energy – 2.4%				3,206
Financials
Financial Exchanges & Data – 3.2%
CME Group, Inc.		30		4,097
Investment Banking & Brokerage – 0.7%
Goldman Sachs Group, Inc. (The)		4		949
Total Financials – 3.9%				5,046
Health Care
Biotechnology – 8.0%
ACADIA Pharmaceuticals, Inc. (A)		52		1,976
Alexion Pharmaceuticals, Inc. (A)		11		1,497
BioMarin Pharmaceutical, Inc. (A)		25		2,359
Celgene Corp. (A)		22		3,274
Incyte Corp. (A)		11		1,330
				10,436

COMMON STOCKS (Continued)	Shares			Value
Health Care Equipment – 4.2%
Danaher Corp.		42		$	3,624
Intuitive Surgical, Inc. (A)		2			1,935
					5,559
Pharmaceuticals – 2.2%
Bristol-Myers Squibb Co.		23			1,438
Jazz Pharmaceuticals plc (A)		10			1,426
					2,864
Total Health Care – 14.4%					18,859
Industrials
Aerospace & Defense – 2.2%
Boeing Co. (The)		4			893
Raytheon Co.		11			2,061
					2,954
Construction Machinery & Heavy Trucks – 2.9%
Caterpillar, Inc.		30			3,747
Industrial Machinery – 3.2%
Stanley Black & Decker, Inc.		27			4,137
Railroads – 1.2%
Union Pacific Corp.		13			1,542
Research & Consulting Services – 2.8%
Verisk Analytics, Inc., Class A (A)		43			3,616
Trucking – 2.8%
J.B. Hunt Transport Services, Inc.		33			3,650
Total Industrials – 15.1%					19,646
Information Technology
Application Software – 7.7%
Adobe Systems, Inc. (A)		28			4,233
salesforce.com, Inc. (A)		63			5,860
					10,093
Data Processing & Outsourced Services – 10.3%
FleetCor Technologies, Inc. (A)		20			3,095
MasterCard, Inc., Class A		24			3,349
PayPal, Inc. (A)		41			2,612
Visa, Inc., Class A		42			4,391
					13,447
Home Entertainment Software – 0.9%
Electronic Arts, Inc. (A)		9			1,116
Internet Software & Services – 7.8%
Alphabet, Inc., Class A (A)		6			5,493
Alphabet, Inc., Class C (A)		—	*		341
Facebook, Inc., Class A (A)		25			4,306
					10,140
Semiconductor Equipment – 2.1%
Lam Research Corp.		15			2,748

COMMON STOCKS (Continued)	Shares		Value
Systems Software – 8.2%
Microsoft Corp.		120	$	8,954
Red Hat, Inc. (A)		15		1,674
				10,628
Technology Hardware, Storage & Peripherals – 4.9%
Apple, Inc.		42		6,424
Total Information Technology – 41.9%				54,596
Real Estate
Specialized REITs – 2.0%
American Tower Corp., Class A		19		2,583
Total Real Estate – 2.0%				2,583
TOTAL COMMON STOCKS – 99.0%			$	129,090
(Cost: $91,108)
SHORT-TERM SECURITIES	Principal
Master Note – 1.2%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10-4-17 (B)	$	1,573		1,573
TOTAL SHORT-TERM SECURITIES – 1.2%			$	1,573
(Cost: $1,573)
TOTAL INVESTMENT SECURITIES – 100.2%			$	130,663
(Cost: $92,681)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)%				(278	)
NET ASSETS – 100.0%			$	130,385

2017 SEMIANNUAL REPORT 117

SCHEDULE OF INVESTMENTS IVY TAX-MANAGED EQUITY FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 September 30, 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	$	129,090	$	—	$	—
Short-Term Securities		—		1,573		—
Total	$	129,090	$	1,573	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

LIBOR = London Inberbank Offered Rate

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

118 SEMIANNUAL REPORT 2017

PORTFOLIO HIGHLIGHTS IVY VALUE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2017 (UNAUDITED)

Asset Allocation

Stocks	92.0%
Financials	33.0%
Health Care	14.0%
Energy	10.6%
Consumer Discretionary	9.2%
Information Technology	7.4%
Consumer Staples	6.9%
Industrials	5.2%
Materials	3.1%
Real Estate	2.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	8.0%

Lipper Rankings

Category: Large-Cap Value Funds	Rank	Percentile
1 Year	396/457		87
3 Year	386/403		96
5 Year	263/363		73
10 Year	122/253		49

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

Top 10 Equity Holdings

Company	Sector	Industry
Energy Transfer Partners L.P.	Energy	Oil & Gas Storage & Transportation
JPMorgan Chase & Co.	Financials	Other Diversified Financial Services
Citigroup, Inc.	Financials	Other Diversified Financial Services
Wal-Mart Stores, Inc.	Consumer Staples	Hypermarkets & Super Centers
Capital One Financial Corp.	Financials	Consumer Finance
Synchrony Financial	Financials	Consumer Finance
State Street Corp.	Financials	Asset Management & Custody Banks
Amgen, Inc.	Health Care	Biotechnology
Dow Chemical Co. (The)	Materials	Diversified Chemicals
MetLife, Inc.	Financials	Life & Health Insurance

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

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

2017 SEMIANNUAL REPORT 119

SCHEDULE OF INVESTMENTS IVY VALUE FUND (in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Cable & Satellite – 2.3%
Comcast Corp., Class A		271	$	10,443
General Merchandise Stores – 2.5%
Target Corp.		192		11,342
Home Improvement Retail – 2.4%
Lowe’s Co., Inc.		138		11,032
Housewares & Specialties – 2.0%
Newell Rubbermaid, Inc.		221		9,434
Total Consumer Discretionary – 9.2%				42,251
Consumer Staples
Drug Retail – 3.0%
CVS Caremark Corp.		170		13,792
Hypermarkets & Super Centers – 3.9%
Wal-Mart Stores, Inc.		227		17,714
Total Consumer Staples – 6.9%				31,506
Energy
Oil & Gas Equipment & Services – 2.6%
Baker Hughes, Inc.		321		11,737
Oil & Gas Refining & Marketing – 2.6%
Marathon Petroleum Corp.		216		12,124
Oil & Gas Storage & Transportation – 5.4%
Energy Transfer Partners L.P.		1,360		24,880
Total Energy – 10.6%				48,741
Financials
Asset Management & Custody Banks – 3.3%
State Street Corp.		156		14,943
Consumer Finance – 7.3%
Capital One Financial Corp.		199		16,864
Synchrony Financial		531		16,475
				33,339
Life & Health Insurance – 3.1%
MetLife, Inc.		251		13,039
MetLife, Inc. (A)		21		1,288
				14,327
Mortgage REITs – 2.6%
American Capital Agency Corp.		549		11,892
Multi-Line Insurance – 2.6%
American International Group, Inc.		195		11,940
Other Diversified Financial Services – 9.5%
Citigroup, Inc.		288		20,935
JPMorgan Chase & Co.		239		22,846
				43,781

COMMON STOCKS (Continued)	Shares		Value
Property & Casualty Insurance – 1.9%
Allstate Corp. (The)		96	$	8,814
Regional Banks – 2.7%
Fifth Third Bancorp		439		12,272
Total Financials – 33.0%				151,308
Health Care
Biotechnology – 3.2%
Amgen, Inc.		78		14,618
Health Care Facilities – 2.4%
HCA Holdings, Inc. (A)		140		11,119
Managed Health Care – 5.0%
Aetna, Inc.		73		11,544
Cigna Corp.		61		11,310
				22,854
Pharmaceuticals – 3.4%
Jazz Pharmaceuticals plc (A)		70		10,237
Teva Pharmaceutical Industries Ltd. ADR		307		5,405
				15,642
Total Health Care – 14.0%				64,233
Industrials
Electrical Components & Equipment – 2.6%
Eaton Corp.		154		11,818
Industrial Machinery – 2.6%
Timken Co. (The)		242		11,759
Total Industrials – 5.2%				23,577
Information Technology
Semiconductors – 2.7%
Micron Technology, Inc.(A)		313		12,306
Systems Software – 2.3%
Microsoft Corp.		140		10,399
Technology Hardware, Storage & Peripherals – 2.4%
Western Digital Corp.		131		11,275
Total Information Technology – 7.4%				33,980
Materials
Diversified Chemicals – 3.1%
Dow Chemical Co. (The)		208		14,372
Total Materials – 3.1%				14,372
Real Estate
Health Care REITs – 2.0%
Welltower, Inc.		128		8,989

COMMON STOCKS (Continued)	Shares		Value
Specialized REITs – 0.6%
Uniti Group, Inc.		204	$	2,986
Total Real Estate – 2.6%				11,975
TOTAL COMMON STOCKS – 92.0%			$	421,943
(Cost: $361,501)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 6.9%
E.I. du Pont de Nemours and Co.,
1.460%, 10-17-17	$	5,000		4,997
J.M. Smucker Co. (The),
1.390%, 10-2-17		1,571		1,571
John Deere Canada ULC (GTD by Deere & Co.),
1.190%, 10-23-17		5,000		4,996
McCormick & Co., Inc.,
1.341%, 10-4-17		15,000		14,997
Medtronic Global Holdings SCA,
1.580%, 10-10-17		5,000		4,998
				31,559
Master Note – 0.5%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
1.450%, 10-4-17 (C)		2,385		2,385
Municipal Obligations – 1.0%
NY Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2012A (GTD by Bank of America N.A.) (BVAL plus 18 bps),
0.970%, 10-7-17 (C)		4,500		4,500
TOTAL SHORT-TERM SECURITIES – 8.4%			$	38,444
(Cost: $38,446)
TOTAL INVESTMENT SECURITIES – 100.4%			$	460,387
(Cost: $399,947)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.4)%				(1,621	)
NET ASSETS – 100.0%			$	458,766

120 SEMIANNUAL REPORT 2017

SCHEDULE OF INVESTMENTS IVY VALUE FUND(in thousands)

SEPTEMBER 30, 2017 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2017.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 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 total return swap agreements were outstanding at September 30, 2017:

Underlying Security	Counterparty	Maturity Date		Notional Amount		Financing Fee(1)(2)		Value		Upfront Payments/ (Receipts)		Unrealized Appreciation
Russell 1000 Value Total Return index	Morgan Stanley & Co. International plc		09/26/2018	$	26,646		1-Month LIBOR plus 45 bps	$	142	$	—	$	142

(1)The Fund pays the financing fee multiplied by the notional amount each month.

(2)At the termination date, a net cash flow is exchanged where the market-linked total return is equivalent to the return of the underlying security less a financing rate, if any. As the payer, a Fund would owe payments on any net positive total return, and would receive payments in the event of a negative total return.

The following written options were outstanding at September 30, 2017 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type		Number of Contracts		Notional Amount		Expiration Month		Exercise Price		Premium Received		Value
MetLife, Inc.	N/A		Call		211		21		November 2017	$	60.00	$	22	$	(56	)
Wal-Mart Stores, Inc.	N/A		Put		567		57		October 2017		72.50		36		(15	)
												$	58	$	(71	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 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	$	421,943	$	—	$	—
Short-Term Securities		—		38,444		—
Total	$	421,943	$	38,444	$	—
Total Return Swaps	$	—	$	142	$	—
Liabilities
Written Options	$	71	$	—	$	—

During the period ended September 30, 2017, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

BVAL = Bloomberg Valuation Benchmark Curve

GTD = Guaranteed

LIBOR = London Inberbank Offered Rate

OTC = Over the Counter

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 121

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Advantus Bond Fund			Ivy Core Equity Fund		Ivy Cundill Global Value Fund			Ivy Dividend Opportunities Fund		Ivy Emerging Markets Equity Fund(1)			Ivy European Opportunities Fund			Ivy Global Bond Fund
ASSETS
Investments in unaffiliated securities at value+	$	969,602		$	894,525	$	199,988		$	364,027	$	1,867,875		$	264,722		$	196,040
Investments at Value		969,602			894,525		199,988			364,027		1,867,875			264,722			196,040
Cash		12			1		3			1		8,640			—	*		515
Cash denominated in foreign currencies at value+		—			—		—	*		—		1,531			—			—
Restricted cash		—			—		—			—		49			975			—
Investment securities sold receivable		5,166			1,539		6			—		25,706			—			729
Dividends and interest receivable		6,401			208		645			405		1,671			538			1,934
Capital shares sold receivable		1,696			881		61			352		16,350			278			287
Receivable from affiliates		555			310		—			11		490			—			205
Unrealized appreciation on forward foreign currency contracts		—			—		245			—		—			—			—
Variation margin receivable		49			—		—			—		—			—			—
Prepaid and other assets		74			77		51			63		139			46			44
Total Assets		983,555			897,541		200,999			364,859		1,922,451			266,559			199,754
LIABILITIES
Investment securities purchased payable		31,531			1,803		87			—		53,618			316			9,579
Capital shares redeemed payable		1,647			1,525		262			478		4,574			340			438
Distributions payable		214			—		—			—		—			—			—
Independent Trustees and Chief Compliance Officer fees payable		72			103		99			29		70			63			10
Distribution and service fees payable		4			11		2			4		12			2			2
Shareholder servicing payable		153			165		66			83		313			51			41
Investment management fee payable		27			34		9			14		89			13			7
Accounting services fee payable		20			21		6			11		30			8			6
Unrealized depreciation on forward foreign currency contracts		—			—		—			—		—			465			—
Variation margin payable		62			—		—			—		—			—			—
Other liabilities		42			16		11			5		75			9			13
Total Liabilities		33,772			3,678		542			624		58,781			1,267			10,096
Total Net Assets	$	949,783		$	893,863	$	200,457		$	364,235	$	1,863,670		$	265,292		$	189,658
NET ASSETS
Capital paid in (shares authorized—unlimited)	$	950,187		$	644,964	$	177,042		$	255,803	$	1,562,380		$	347,174		$	205,072
Undistributed (distributions in excess of) net investment income		(496	)		2,132		1,788			1,819		6,042			3,172			92
Accumulated net realized gain (loss)		(13,706	)		68,449		(14,178	)		21,810		(109,363	)		(129,829	)		(14,310	)
Net unrealized appreciation (depreciation)		13,798			178,318		35,805			84,803		404,611			44,775			(1,196	)
Total Net Assets	$	949,783		$	893,863	$	200,457		$	364,235	$	1,863,670		$	265,292		$	189,658
CAPITAL SHARES OUTSTANDING:
Class A		18,784			18,215		5,284			7,144		24,136			2,445			4,691
Class B		377			522		45			337		275			20			206
Class C		2,074			8,835		711			1,909		3,924			248			1,617
Class E		379			865		N/A			337		15			3			N/A
Class I		45,477			19,764		4,751			8,784		48,798			2,147			9,812
Class N		19,661			7,017		67			128		11,610			3,130			2,605
Class R		1,031			192		19			24		886			19			73
Class T		N/A			N/A		N/A			N/A		14			N/A			N/A
Class Y		425			3,540		114			271		2,071			37			296
NET ASSET VALUE PER SHARE:
Class A		$10.77			$14.67		$18.12			$19.24		$19.99			$32.71			$9.83
Class B		$10.77			$12.30		$16.35			$18.88		$16.44			$29.95			$9.82
Class C		$10.77			$12.74		$16.98			$18.99		$17.21			$30.79			$9.83
Class E		$10.77			$14.61		N/A			$19.17		$20.31			$33.01			N/A
Class I		$10.77			$16.28		$18.56			$19.31		$20.65			$33.08			$9.83
Class N		$10.77			$16.31		$18.63			$19.34		$20.76			$33.26			$9.83
Class R		$10.77			$14.56		$18.08			$19.21		$19.83			$32.66			$9.81
Class T		N/A			N/A		N/A			N/A		$20.00			N/A			N/A
Class Y		$10.77			$15.84		$18.39			$19.27		$20.38			$33.00			$9.83
+COST
Investments in unaffiliated securities at cost	$	955,795		$	716,207	$	164,334		$	279,224	$	1,463,223		$	219,489		$	197,236
Cash denominated in foreign currencies at cost		—			—		—			—		1,526			—			—

* Not shown due to rounding.

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

See Accompanying Notes to Financial Statements.

122 SEMIANNUAL REPORT 2017

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Global Equity Income Fund			Ivy Global Growth Fund		Ivy Global Income Allocation Fund			Ivy Government Money Market Fund		Ivy High Income Fund			Ivy International Core Equity Fund			Ivy Large Cap Growth Fund
ASSETS
Investments in unaffiliated securities at value+	$	304,669		$	447,549	$	688,562		$	166,874	$	4,325,966		$	6,686,562		$	1,860,046
Investments in affiliated securities at value+		—			—		—			—		34,492			—			—
Investments at Value		304,669			447,549		688,562			166,874		4,360,458			6,686,562			1,860,046
Cash		1			—		231			926		10,496			—	*		1
Cash denominated in foreign currencies at value+		—			1,580		—			—		—			30,853			—
Restricted cash		—			—		—			—		160			70			—
Investment securities sold receivable		1,796			769		—			—		29,915			62,244			6,897
Dividends and interest receivable		828			840		6,419			207		71,813			16,289			961
Capital shares sold receivable		348			142		337			3,525		10,066			14,430			1,078
Receivable from affiliates		—	*		—		2			104		41			8			80
Unrealized appreciation on forward foreign currency contracts		249			—		33			—		23			342			—
Prepaid and other assets		59			61		60			52		215			224			105
Total Assets		307,950			450,941		695,644			171,688		4,483,187			6,811,022			1,869,168
LIABILITIES
Investment securities purchased payable		1,025			10,050		136			—		60,260			24,203			—
Capital shares redeemed payable		601			688		1,105			4,011		13,638			4,798			2,657
Distributions payable		—			—		—			8		2,279			—			—
Independent Trustees and Chief Compliance Officer fees payable		7			79		46			25		226			134			130
Overdraft due to custodian		—			5		—			—		—			—			—
Distribution and service fees payable		2			3		5			1		77			33			14
Shareholder servicing payable		61			98		136			54		854			921			327
Investment management fee payable		12			21		27			3		128			279			69
Accounting services fee payable		8			12		15			6		23			23			23
Unrealized depreciation on forward foreign currency contracts		546			—		444			—		154			1,444			—
Other liabilities		9			19		497			95		71			105			25
Total Liabilities		2,271			10,975		2,411			4,203		77,710			31,940			3,245
Total Net Assets	$	305,679		$	439,966	$	693,233		$	167,485	$	4,405,477		$	6,779,082		$	1,865,923
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	272,793		$	321,445	$	711,129		$	167,482	$	5,228,673		$	5,991,626		$	1,097,088
Undistributed (distributions in excess of) net investment income		492			1,421		2,547			—		—			69,401			1,454
Accumulated net realized gain (loss)		(18,618	)		29,975		(53,813	)		3		(591,479	)		(108,918	)		62,854
Net unrealized appreciation (depreciation)		51,012			87,125		33,370			—		(231,717	)		826,973			704,527
Total Net Assets	$	305,679		$	439,966	$	693,233		$	167,485	$	4,405,477		$	6,779,082		$	1,865,923
CAPITAL SHARES OUTSTANDING:
Class A		4,908			2,542		13,264			130,786		160,119			33,547			24,601
Class B		140			40		224			3,867		9,177			498			549
Class C		915			608		2,848			22,668		118,446			14,024			5,330
Class E		N/A			3		214			5,720		1,278			374			703
Class I		16,185			5,290		26,295			N/A		224,115			196,889			44,540
Class N		99			592		2,099			4,440		8,635			68,310			7,136
Class R		26			42		19			N/A		8,893			5,346			1,019
Class T		N/A			N/A		N/A			N/A		33			13			N/A
Class Y		342			221		193			N/A		47,100			25,979			1,585
NET ASSET VALUE PER SHARE:
Class A		$13.51			$46.96		$15.28			$1.00		$7.62			$19.60			$21.43
Class B		$13.51			$40.10		$14.99			$1.00		$7.62			$17.36			$16.80
Class C		$13.51			$40.55		$15.09			$1.00		$7.62			$17.42			$18.07
Class E		N/A			$47.31		$15.28			$1.00		$7.62			$19.73			$21.40
Class I		$13.52			$47.89		$15.41			N/A		$7.62			$19.75			$22.47
Class N		$13.53			$48.14		$15.43			$1.00		$7.62			$19.83			$22.60
Class R		$13.52			$46.61		$15.27			N/A		$7.62			$19.57			$20.68
Class T		N/A			N/A		N/A			N/A		$7.62			$19.61			N/A
Class Y		$13.51			$47.18		$15.35			N/A		$7.62			$19.74			$21.95
+COST
Investments in unaffiliated securities at cost	$	253,375		$	360,419	$	654,313		$	166,874	$	4,545,106		$	5,859,580		$	1,155,519
Investments in affiliated securities at cost		—			—		—			—		46,943			—			—
Cash denominated in foreign currencies at cost		—			1,581		—			—		—			29,990			—

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 123

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Limited- Term Bond Fund			Ivy Managed International Opportunities Fund			Ivy Micro Cap Growth Fund			Ivy Mid Cap Growth Fund			Ivy Mid Cap Income Opportunities Fund			Ivy Municipal Bond Fund			Ivy Municipal High Income Fund
ASSETS
Investments in unaffiliated securities at value+	$	1,442,869		$	261		$	164,797		$	2,349,563		$	337,636		$	175,272		$	898,837
Investments in affiliated securities at value+		—			206,209			—			—			—			—			5,112
Investments at Value		1,442,869			206,470			164,797			2,349,563			337,636			175,272			903,949
Cash		2,071			1			1			54			1			1			1
Restricted cash		—			—			—			—			—			99			607
Investment securities sold receivable		—			61			—			1,701			7,500			—			—
Dividends and interest receivable		11,650			—	*		6			451			490			2,139			15,046
Capital shares sold receivable		2,625			261			117			2,651			524			194			2,141
Receivable from affiliates		1			12			—			47			102			—	*		178
Prepaid and other assets		101			46			37			121			82			40			67
Total Assets		1,459,317			206,851			164,958			2,354,588			346,335			177,745			921,989
LIABILITIES
Investment securities purchased payable		6,068			—			—			7,229			7,550			—			—
Capital shares redeemed payable		3,441			295			380			3,695			540			153			2,187
Distributions payable		211			—			—			—			—			32			299
Independent Trustees and Chief Compliance Officer fees payable		86			14			5			123			3			14			40
Distribution and service fees payable		11			1			2			24			2			2			12
Shareholder servicing payable		236			21			45			479			56			27			127
Investment management fee payable		36			1			8			107			16			5			26
Accounting services fee payable		23			4			6			23			9			6			20
Variation margin payable		—			—			—			—			—			1			6
Written options at value+		—			—			—			966			—			—			—
Other liabilities		28			2			7			41			8			7			11
Total Liabilities		10,140			338			453			12,687			8,184			247			2,728
Total Net Assets	$	1,449,177		$	206,513		$	164,505		$	2,341,901		$	338,151		$	177,498		$	919,261
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	1,461,912		$	172,464		$	119,114		$	1,592,423		$	294,249		$	170,774		$	933,414
Undistributed (distributions in excess of) net investment income		(450	)		312			(1,412	)		(16,066	)		2,543			204			2,636
Accumulated net realized gain (loss)		(16,732	)		(4,826	)		(513	)		134,396			(9,709	)		(2,980	)		(46,453	)
Net unrealized appreciation		4,447			38,563			47,316			631,148			51,068			9,500			29,664
Total Net Assets	$	1,449,177		$	206,513		$	164,505		$	2,341,901		$	338,151		$	177,498		$	919,261
CAPITAL SHARES OUTSTANDING:
Class A		44,075			6,685			3,201			18,608			7,829			5,208			39,390
Class B		694			80			57			909			N/A			162			1,959
Class C		6,634			410			292			10,414			992			1,728			31,331
Class E		450			45			N/A			419			204			N/A			N/A
Class I		72,421			10,171			2,790			48,559			12,280			7,697			104,918
Class N		8,102			23			112			5,470			3,979			22			53
Class R		70			77			29			2,252			205			N/A			N/A
Class Y		1,254			61			50			12,025			494			49			2,762
NET ASSET VALUE PER SHARE:
Class A		$10.84			$11.74			$24.94			$23.11			$13.00			$11.94			$5.10
Class B		$10.84			$11.45			$23.30			$18.83			N/A			$11.94			$5.10
Class C		$10.84			$11.49			$23.70			$20.01			$12.95			$11.94			$5.10
Class E		$10.84			$11.75			N/A			$22.59			$13.01			N/A			N/A
Class I		$10.84			$11.80			$25.63			$24.72			$13.02			$11.94			$5.10
Class N		$10.84			$11.80			$25.82			$24.87			$13.03			$11.94			$5.10
Class R		$10.84			$11.70			$24.79			$22.62			$12.99			N/A			N/A
Class Y		$10.84			$11.74			$25.81			$24.06			$13.00			$11.94			$5.10
+COST
Investments in unaffiliated securities at cost	$	1,438,422		$	261		$	117,481		$	1,718,251		$	286,568		$	165,853		$	870,744
Investments in affiliated securities at cost		—			167,646			—			—			—			—			3,998
Written options premiums received at cost		—			—			—			802			—			—			—

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

124 SEMIANNUAL REPORT 2017

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Small Cap Core Fund		Ivy Small Cap Growth Fund			Ivy Tax- Managed Equity Fund			Ivy Value Fund
ASSETS
Investments in unaffiliated securities at value+	$	616,075	$	1,121,604		$	130,663		$	460,387
Investments at Value		616,075		1,121,604			130,663			460,387
Cash		1		1			1			—	*
Investment securities sold receivable		3,691		1,919			568			736
Dividends and interest receivable		292		100			62			582
Capital shares sold receivable		2,414		1,056			151			405
Receivable from affiliates		—		10			—	*		—
Swaps agreements, at value		—		632			—			142
Prepaid and other assets		84		85			36			49
Total Assets		622,557		1,125,407			131,481			462,301
LIABILITIES
Investment securities purchased payable		6,948		2,174			988			2,739
Capital shares redeemed payable		685		1,153			67			589
Independent Trustees and Chief Compliance Officer fees payable		33		165			2			21
Distribution and service fees payable		5		17			1			2
Shareholder servicing payable		128		203			21			73
Investment management fee payable		28		52			5			18
Accounting services fee payable		15		24			6			12
Written options at value+		—		—			—			71
Other liabilities		13		18			6			10
Total Liabilities		7,855		3,806			1,096			3,535
Total Net Assets	$	614,702	$	1,121,601		$	130,385		$	458,766
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	494,707	$	690,125		$	89,895		$	387,417
Undistributed (distributions in excess of) net investment income		831		(6,595	)		(52	)		4,979
Accumulated net realized gain		4,050		122,997			2,560			5,797
Net unrealized appreciation		115,114		315,074			37,982			60,573
Total Net Assets	$	614,702	$	1,121,601		$	130,385		$	458,766
CAPITAL SHARES OUTSTANDING:
Class A		10,454		13,459			1,858			4,121
Class B		214		539			69			93
Class C		2,137		11,558			289			787
Class E		10		472			N/A			8
Class I		15,155		15,581			3,371			7,603
Class N		2,354		4,544			14			6,932
Class R		518		2,766			N/A			15
Class T		14		14			N/A			N/A
Class Y		938		5,878			26			23
NET ASSET VALUE PER SHARE:
Class A		$18.67		$18.87			$23.09			$23.38
Class B		$15.19		$14.30			$22.05			$21.70
Class C		$16.21		$15.58			$21.96			$22.55
Class E		$19.38		$18.71			N/A			$23.47
Class I		$20.15		$24.08			$23.35			$23.47
Class N		$20.31		$24.21			$23.36			$23.53
Class R		$18.56		$18.55			N/A			$23.35
Class T		$18.68		$18.87			N/A			N/A
Class Y		$19.57		$22.84			$23.13			$23.42
+COST
Investments in unaffiliated securities at cost	$	500,961	$	807,178		$	92,681		$	399,947
Written options premiums received at cost		—		—			—			58

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 125

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands)	Ivy Advantus Bond Fund			Ivy Core Equity Fund			Ivy Cundill Global Value Fund			Ivy Dividend Opportunities Fund			Ivy Emerging Markets Equity Fund(1)			Ivy European Opportunities Fund			Ivy Global Bond Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	195		$	7,062		$	2,503		$	5,293		$	16,456		$	4,035		$	301
Foreign dividend withholding tax		—			(56	)		(121	)		(77	)		(1,878	)		(385	)		(8	)
Interest and amortization from unaffiliated securities		15,376			65			1			46			88			19			3,068
Foreign interest withholding tax		—			—			—			—			—	*		—			—
Total Investment Income		15,571			7,071			2,383			5,262			14,666			3,669			3,361
EXPENSES
Investment management fee		2,189			3,380			1,016			1,301			6,059			942			512
Distribution and service fees:
Class A		255			331			118			173			483			96			59
Class B		22			35			4			34			22			3			11
Class C		119			566			62			189			255			38			74
Class E		5			15			N/A			8			—	*		—	*		N/A
Class R		25			7			1			1			36			2			2
Class T		N/A			N/A			N/A			N/A			—	*		N/A			N/A
Class Y		6			75			3			7			43			1			4
Shareholder servicing:
Class A		245			251			172			143			512			137			62
Class B		10			12			4			8			11			2			5
Class C		24			88			12			28			49			10			13
Class E		8			23			N/A			13			—	*		—	*		N/A
Class I		386			278			82			146			574			66			78
Class N		7			9			—	*		—	*		8			2			—	*
Class R		12			3			—	*		1			19			1			1
Class T		N/A			N/A			N/A			N/A			—	*		N/A			N/A
Class Y		4			45			2			4			29			1			2
Registration fees		72			59			53			57			93			51			49
Custodian fees		11			11			15			4			145			14			6
Independent Trustees and Chief Compliance Officer fees		22			27			11			10			28			8			4
Accounting services fee		112			126			45			67			144			42			36
Professional fees		35			19			24			15			29			23			31
Other		44			62			9			43			65			15			35
Total Expenses		3,613			5,422			1,633			2,252			8,604			1,454			984
Less:
Expenses in excess of limit		(555	)		(310	)		(164	)		(11	)		(490	)		—			(205	)
Total Net Expenses		3,058			5,112			1,469			2,241			8,114			1,454			779
Net Investment Income		12,513			1,959			914			3,021			6,552			2,215			2,582
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		6,470			55,785			10,683			14,972			2,472			8,916			(2,426	)
Futures contracts		(143	)		—			—			—			56			—			—
Swap agreements		—			—			—			—			232			—			—
Forward foreign currency contracts		—			—			(676	)		—			—			(693	)		(168	)
Foreign currency exchange transactions		—			—	*		14			4			(310	)		494			15
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		4,392			18,665			(309	)		5,623			213,928			18,427			4,017
Futures contracts		31			—			—			—			—			—			—
Forward foreign currency contracts		—			—			377			—			—			(588	)		29
Foreign currency exchange transactions		—			—			49			—			(69	)		22			(2	)
Net Realized and Unrealized Gain		10,750			74,450			10,138			20,599			216,309			26,578			1,465
Net Increase in Net Assets Resulting from Operations	$	23,263		$	76,409		$	11,052		$	23,620		$	222,861		$	28,793		$	4,047

* Not shown due to rounding.

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

See Accompanying Notes to Financial Statements.

126 SEMIANNUAL REPORT 2017

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands)	Ivy Global Equity Income Fund			Ivy Global Growth Fund			Ivy Global Income Allocation Fund			Ivy Government Money Market Fund			Ivy High Income Fund			Ivy International Core Equity Fund			Ivy Large Cap Growth Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	7,929		$	4,531		$	14,331		$	—		$	1,088		$	100,615		$	9,527
Dividends from affiliated securities		—			—			—			—			1,810			—			—
Foreign dividend withholding tax		(399	)		(345	)		(877	)		—			—			(9,635	)		—
Interest and amortization from unaffiliated securities		25			73			9,550			860			179,118			810			81
Interest and amortization from affiliated securities		—			—			—			—			565			—			—
Foreign interest withholding tax		—			—			—			—			—			(1	)		—
Total Investment Income		7,555			4,259			23,004			860			182,581			91,789			9,608
EXPENSES
Investment management fee		1,152			1,861			2,501			299			11,952			22,848			5,994
Distribution and service fees:
Class A		84			127			262			—			1,564			774			639
Class B		9			9			18			23			375			44			48
Class C		61			123			227			118			4,697			1,171			485
Class E		N/A			—	*		4			—			12			8			18
Class R		1			5			1			N/A			173			222			52
Class T		N/A			N/A			N/A			N/A			—	*		—	*		N/A
Class Y		6			15			4			N/A			473			596			44
Shareholder servicing:
Class A		83			153			240			120			874			692			490
Class B		1			4			7			3			59			15			14
Class C		8			26			27			16			505			168			71
Class E		N/A			—	*		7			7			21			16			24
Class I		210			220			357			N/A			1,403			2,807			816
Class N		—	*		1			1			—	*		3			55			5
Class R		1			3			1			N/A			86			112			26
Class T		N/A			N/A			N/A			N/A			—	*		—	*		N/A
Class Y		3			10			3			N/A			309			371			28
Registration fees		51			56			63			65			119			111			72
Custodian fees		13			11			11			8			7			242			15
Independent Trustees and Chief Compliance Officer fees		8			13			19			6			114			125			45
Accounting services fee		53			70			93			35			139			139			138
Professional fees		20			22			28			27			92			56			24
Other		47			42			41			85			197			190			102
Total Expenses		1,811			2,771			3,915			812			23,174			30,762			9,150
Less:
Expenses in excess of limit		—	*		—			(2	)		(104	)		(41	)		(8	)		(80	)
Total Net Expenses		1,811			2,771			3,913			708			23,133			30,754			9,070
Net Investment Income		5,744			1,488			19,091			152			159,448			61,035			538
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		10,234			29,110			(9,101	)		1			34,122			43,344			31,931
Forward foreign currency contracts		(2,378	)		—			(3,450	)		—			(2,652	)		7,696			—
Foreign currency exchange transactions		(21	)		9			89			—			9			1,562			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		18,654			11,688			26,716			—			(17,254	)		392,064			165,040
Investments in affiliated securities		—			—			—			—			(1,681	)		—			—
Forward foreign currency contracts		(219	)		—			(563	)		—			(233	)		692			—
Foreign currency exchange transactions		19			16			34			—			5			1,114			—
Net Realized and Unrealized Gain		26,289			40,823			13,725			1			12,316			446,472			196,971
Net Increase in Net Assets Resulting from Operations	$	32,033		$	42,311		$	32,816		$	153		$	171,764		$	507,507		$	197,509

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 127

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands)	Ivy Limited- Term Bond Fund			Ivy Managed International Opportunities Fund			Ivy Micro Cap Growth Fund			Ivy Mid Cap Growth Fund			Ivy Mid Cap Income Opportunities Fund			Ivy Municipal Bond Fund			Ivy Municipal High Income Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	—		$	—		$	333		$	9,759		$	5,053		$	—		$	—
Dividends from affiliated securities		—			710			—			—			—			—			—
Interest and amortization from unaffiliated securities		19,591			4			53			171			33			3,474			22,286
Interest and amortization from affiliated securities		—			—			—			—			—			—			162
Total Investment Income		19,591			714			386			9,930			5,086			3,474			22,448
EXPENSES
Investment management fee		3,435			49			792			9,488			1,435			481			2,632
Distribution and service fees:
Class A		638			96			102			540			137			82			274
Class B		42			5			7			86			N/A			10			53
Class C		396			23			36			1,056			71			111			859
Class E		6			—	*		N/A			11			3			N/A			N/A
Class R		2			2			2			131			6			N/A			N/A
Class Y		19			1			1			381			10			1			19
Shareholder servicing:
Class A		371			32			122			438			122			32			73
Class B		13			1			3			18			N/A			1			5
Class C		65			3			11			166			17			12			56
Class E		7			—	*		N/A			22			—	*		N/A			N/A
Class I		677			13			65			901			146			76			451
Class N		4			—	*		—	*		7			2			—	*		—	*
Class R		1			—	*		1			69			3			N/A			N/A
Class Y		12			—	*		1			237			7			—	*		13
Registration fees		74			47			48			69			56			35			48
Custodian fees		5			4			4			17			5			4			6
Independent Trustees and Chief Compliance Officer fees		40			5			4			53			8			5			25
Accounting services fee		138			23			36			144			57			36			122
Professional fees		25			13			14			26			17			18			31
Other		66			14			12			97			20			33			55
Total Expenses		6,036			331			1,261			13,957			2,122			937			4,722
Less:
Expenses in excess of limit		(2	)		(12	)		—			(47	)		(102	)		—	*		(279	)
Total Net Expenses		6,034			319			1,261			13,910			2,020			937			4,443
Net Investment Income (Loss)		13,557			395			(875	)		(3,980	)		3,066			2,537			18,005
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		743			—			(311	)		53,606			(1,394	)		(266	)		(45,776	)
Investments in affiliated securities		—			6,650			—			—			—			—			—
Futures contracts		—			—			—			—			—			(237	)		(1,395	)
Written options		—			—			—			(150	)		—			—			—
Foreign currency exchange transactions		—			—			—			6			—			—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		6,036			—			9,961			190,191			8,504			2,263			48,152
Investments in affiliated securities		—			13,232			—			—			—			—			(214	)
Futures contracts		—			—			—			—			—			104			457
Written options		—			—			—			(164	)		—			—			—
Net Realized and Unrealized Gain		6,779			19,882			9,650			243,489			7,110			1,864			1,224
Net Increase in Net Assets Resulting from Operations	$	20,336		$	20,277		$	8,775		$	239,509		$	10,176		$	4,401		$	19,229

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

128 SEMIANNUAL REPORT 2017

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED)

(In thousands)	Ivy Small Cap Core Fund			Ivy Small Cap Growth Fund			Ivy Tax- Managed Equity Fund			Ivy Value Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	4,443		$	1,971		$	711		$	8,316
Foreign dividend withholding tax		—			—			(2	)		(50	)
Interest and amortization from unaffiliated securities		101			329			11			76
Total Investment Income		4,544			2,300			720			8,342
EXPENSES
Investment management fee		2,379			4,484			401			1,411
Distribution and service fees:
Class A		244			307			50			124
Class B		19			39			7			13
Class C		166			885			30			95
Class E		—	*		10			N/A			—	*
Class R		22			123			N/A			1
Class T		—	*		—	*		N/A			N/A
Class Y		22			164			1			1
Shareholder servicing:
Class A		272			270			23			123
Class B		9			12			1			5
Class C		37			127			4			15
Class E		—	*		20			N/A			—	*
Class I		225			284			62			155
Class N		2			5			—	*		5
Class R		11			63			N/A			—	*
Class T		—	*		—	*		N/A			N/A
Class Y		16			105			—	*		—	*
Registration fees		99			66			35			60
Custodian fees		10			11			4			7
Independent Trustees and Chief Compliance Officer fees		14			31			3			10
Accounting services fee		83			137			33			67
Professional fees		25			24			13			20
Other		28			64			32			48
Total Expenses		3,683			7,231			699			2,160
Less:
Expenses in excess of limit		—			(10	)		—	*		—
Total Net Expenses		3,683			7,221			699			2,160
Net Investment Income (Loss)		861			(4,921	)		21			6,182
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		(4,715	)		41,582			4,733			3,245
Futures contracts		—			—			—			746
Written options		—			(240	)		—			68
Swap agreements		—			5,000			—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		37,698			54,538			6,940			6,308
Written options		—			—			—			51
Swap agreements		—			1,220			—			142
Net Realized and Unrealized Gain		32,983			102,100			11,673			10,560
Net Increase in Net Assets Resulting from Operations	$	33,844		$	97,179		$	11,694		$	16,742

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 129

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Advantus Bond Fund						Ivy Core Equity Fund						Ivy Cundill Global Value Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	12,513		$	18,661		$	1,959		$	2,807		$	914		$	1,813
Net realized gain (loss) on investments		6,327			6,042			55,785			46,898			10,021			(10,373	)
Net change in unrealized appreciation		4,423			1,256			18,665			54,219			117			46,231
Net Increase in Net Assets Resulting from Operations		23,263			25,959			76,409			103,924			11,052			37,671
Distributions to Shareholders From:
Net investment income:
Class A		(2,772	)		(8,474	)		—			(1,033	)		—			(342	)
Class B		(40	)		(93	)		—			—			—			—
Class C		(238	)		(584	)		—			—			—			—
Class E		(58	)		(112	)		—			(35	)		N/A			(5	)
Class I		(7,660	)		(10,589	)		—			(2,357	)		—			(734	)
Class N		(2,050	)		(53	)		—			(771	)		—			(10	)
Class R		(121	)		(103	)		—			(2	)		—			(1	)
Class Y		(67	)		(123	)		—			(424	)		—			(13	)
Net realized gains:
Class A		—			—			—			(9,463	)		—			—
Class B		—			—			—			(309	)		—			—
Class C		—			—			—			(4,447	)		—			—
Class E		—			—			—			(370	)		N/A			—
Class I		—			—			—			(11,431	)		—			—
Class N		—			—			—			(3,244	)		—			—
Class R		—			—			—			(87	)		—			—
Class Y		—			—			—			(2,058	)		—			—
Total Distributions to Shareholders		(13,006	)		(20,131	)		—			(36,031	)		—			(1,105	)
Capital Share Transactions		225,924			(61,966	)		(150,824	)		(229,497	)		(23,307	)		(39,778	)
Net Increase (Decrease) in Net Assets		236,181			(56,138	)		(74,415	)		(161,604	)		(12,255	)		(3,212	)
Net Assets, Beginning of Period		713,602			769,740			968,278			1,129,882			212,712			215,924
Net Assets, End of Period	$	949,783		$	713,602		$	893,863		$	968,278		$	200,457		$	212,712
Undistributed (distributions in excess of) net investment income	$	(496	)	$	(3	)	$	2,132		$	173		$	1,788		$	860

See Accompanying Notes to Financial Statements.

130 SEMIANNUAL REPORT 2017

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Dividend Opportunities Fund						Ivy Emerging Markets Equity Fund(1)					Ivy European Opportunities Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)		Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)		Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	3,021		$	4,416		$	6,552	$	(279	)	$	2,215	$	3,390
Net realized gain (loss) on investments		14,976			19,718			2,450		645			8,717		(3,769	)
Net change in unrealized appreciation		5,623			20,103			213,859		138,186			17,861		18,580
Net Increase in Net Assets Resulting from Operations		23,620			44,237			222,861		138,552			28,793		18,201
Distributions to Shareholders From:
Net investment income:
Class A		(732	)		(2,546	)		—		—			—		(1,037	)
Class B		(12	)		(36	)		—		—			—		(5	)
Class C		(79	)		(242	)		—		—			—		(83	)
Class E		(38	)		(78	)		—		—			—		(1	)
Class I		(1,176	)		(2,127	)		—		—			—		(1,805	)
Class N		(19	)		(40	)		—		—			—		(22	)
Class R		(2	)		(5	)		—		—			—		(6	)
Class T		N/A			N/A			—		N/A			N/A		N/A
Class Y		(31	)		(90	)		—		—			—		(14	)
Net realized gains:
Class A		—			(5,672	)		—		—			—		—
Class B		—			(316	)		—		—			—		—
Class C		—			(1,663	)		—		—			—		—
Class E		—			(214	)		—		—			—		—
Class I		—			(6,582	)		—		—			—		—
Class N		—			(84	)		—		—			—		—
Class R		—			(23	)		—		—			—		—
Class T		N/A			N/A			—		N/A			N/A		N/A
Class Y		—			(225	)		—		—			—		—
Total Distributions to Shareholders		(2,089	)		(19,943	)		—		—			—		(2,973	)
Capital Share Transactions		(39,706	)		(3,968	)		792,285		176,070			57,165		(59,803	)
Net Increase (Decrease) in Net Assets		(18,175	)		20,326			1,015,146		314,622			85,958		(44,575	)
Net Assets, Beginning of Period		382,410			362,084			848,524		533,902			179,334		223,909
Net Assets, End of Period	$	364,235		$	382,410		$	1,863,670	$	848,524		$	265,292	$	179,334
Undistributed (distributions in excess of) net investment income	$	1,819		$	883		$	6,042	$	(200	)	$	3,172	$	463

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 131

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Global Bond Fund						Ivy Global Equity Income Fund						Ivy Global Growth Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	2,582		$	5,866		$	5,744		$	12,092		$	1,488		$	199
Net realized gain (loss) on investments		(2,579	)		(4,610	)		7,835			(7,414	)		29,119			6,130
Net change in unrealized appreciation		4,044			11,613			18,454			23,362			11,704			31,408
Net Increase in Net Assets Resulting from Operations		4,047			12,869			32,033			28,040			42,311			37,737
Distributions to Shareholders From:
Net investment income:
Class A		(434	)		(1,547	)		(1,147	)		(5,179	)		—			—
Class B		(12	)		(38	)		(26	)		(56	)		—			—
Class C		(80	)		(241	)		(170	)		(369	)		—			—
Class E		N/A			N/A			N/A			N/A			—			—
Class I		(977	)		(1,623	)		(4,444	)		(6,575	)		—			—
Class N		(18	)		(58	)		(24	)		(46	)		—			—
Class R		(5	)		(9	)		(5	)		(13	)		—			—
Class Y		(27	)		(56	)		(80	)		(154	)		—			—
Net realized gains:
Class A		—			—			—			—			—			—
Class B		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Class E		N/A			N/A			N/A			N/A			—			—
Class I		—			—			—			—			—			—
Class N		—			—			—			—			—			—
Class R		—			—			—			—			—			—
Class Y		—			—			—			—			—			—
Total Distributions to Shareholders		(1,553	)		(3,572	)		(5,896	)		(12,392	)		—			—
Capital Share Transactions		26,175			(30,213	)		(59,510	)		34,471			(37,012	)		(106,380	)
Net Increase (Decrease) in Net Assets		28,669			(20,916	)		(33,373	)		50,119			5,299			(68,643	)
Net Assets, Beginning of Period		160,989			181,905			339,052			288,933			434,667			503,310
Net Assets, End of Period	$	189,658		$	160,989		$	305,679		$	339,052		$	439,966		$	434,667
Undistributed (distributions in excess of) net investment income	$	92		$	225		$	492		$	665		$	1,421		$	(76	)

See Accompanying Notes to Financial Statements.

132 SEMIANNUAL REPORT 2017

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Global Income Allocation Fund						Ivy Government Money Market Fund						Ivy High Income Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	19,091		$	30,162		$	152		$	61		$	159,448		$	347,837
Net realized gain (loss) on investments		(12,462	)		17,930			1			11			31,479			(113,543	)
Net change in unrealized appreciation (depreciation)		26,187			29,994			—			—			(19,163	)		558,524
Net Increase in Net Assets Resulting from Operations		32,816			78,086			153			72			171,764			792,818
Distributions to Shareholders From:
Net investment income:
Class A		(4,605	)		(13,715	)		(144	)		(53	)		(44,717	)		(112,145	)
Class B		(65	)		(125	)		—	*		(1	)		(2,394	)		(5,470	)
Class C		(865	)		(1,682	)		(1	)		(6	)		(30,217	)		(67,444	)
Class E		(71	)		(109	)		(6	)		(1	)		(333	)		(640	)
Class I		(9,823	)		(13,109	)		N/A			N/A			(64,178	)		(119,459	)
Class N		(766	)		(75	)		(1	)		N/A			(1,730	)		(3,260	)
Class R		(6	)		(12	)		N/A			N/A			(2,350	)		(4,752	)
Class T		N/A			N/A			N/A			N/A			(4	)		N/A
Class Y		(73	)		(67	)		N/A			N/A			(13,534	)		(30,276	)
Net realized gains:
Class A		—			—			—			(1	)		—			—
Class B		—			—			—			—	*		—			—
Class C		—			—			—			—	*		—			—
Class E		—			—			—			—	*		—			—
Class I		—			—			N/A			N/A			—			—
Class N		—			—			—			N/A			—			—
Class R		—			—			N/A			N/A			—			—
Class T		N/A			N/A			N/A			N/A			—			N/A
Class Y		—			—			N/A			N/A			—			—
Total Distributions to Shareholders		(16,274	)		(28,894	)		(152	)		(62	)		(159,457	)		(343,446	)
Capital Share Transactions		(48,912	)		(71,413	)		(56,552	)		444			(153,006	)		(674,416	)
Net Increase (Decrease) in Net Assets		(32,370	)		(22,221	)		(56,551	)		454			(140,699	)		(225,044	)
Net Assets, Beginning of Period		725,603			747,824			224,036			223,582			4,546,176			4,771,220
Net Assets, End of Period	$	693,233		$	725,603		$	167,485		$	224,036		$	4,405,477		$	4,546,176
Undistributed (distributions in excess of) net investment income	$	2,547		$	1,294		$	—		$	—		$	—		$	—

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 133

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy International Core Equity Fund					Ivy Large Cap Growth Fund					Ivy Limited-Term Bond Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)		Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)		Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	61,035	$	70,815		$	538	$	1,028		$	13,557		$	29,202
Net realized gain on investments		52,602		13,698			31,931		158,021			743			6,515
Net change in unrealized appreciation (depreciation)		393,870		539,052			165,040		58,433			6,036			(17,975	)
Net Increase in Net Assets Resulting from Operations		507,507		623,565			197,509		217,482			20,336			17,742
Distributions to Shareholders From:
Net investment income:
Class A		—		(11,323	)		—		—			(4,394	)		(14,202	)
Class B		—		(76	)		—		—			(33	)		(94	)
Class C		—		(2,437	)		—		—			(377	)		(973	)
Class E		—		(79	)		—		—			(41	)		(77	)
Class I		—		(49,133	)		—		—			(8,154	)		(13,269	)
Class N		—		(7,792	)		—		—			(874	)		(1,399	)
Class R		—		(605	)		—		—			(5	)		(10	)
Class T		—		N/A			N/A		N/A			N/A			N/A
Class Y		—		(6,237	)		—		—			(129	)		(304	)
Net realized gains:
Class A		—		—			—		(23,471	)		—			—
Class B		—		—			—		(626	)		—			—
Class C		—		—			—		(5,786	)		—			—
Class E		—		—			—		(573	)		—			—
Class I		—		—			—		(42,961	)		—			—
Class N		—		—			—		(15	)		—			—
Class R		—		—			—		(1,043	)		—			—
Class T		—		N/A			N/A		N/A			N/A			N/A
Class Y		—		—			—		(1,784	)		—			—
Total Distributions to Shareholders		—		(77,682	)		—		(76,259	)		(14,007	)		(30,328	)
Capital Share Transactions		1,348,985		(205,051	)		43,659		(269,172	)		(171,275	)		(183,790	)
Net Increase (Decrease) in Net Assets		1,856,492		340,832			241,168		(127,949	)		(164,946	)		(196,376	)
Net Assets, Beginning of Period		4,922,590		4,581,758			1,624,755		1,752,704			1,614,123			1,810,499
Net Assets, End of Period	$	6,779,082	$	4,922,590		$	1,865,923	$	1,624,755		$	1,449,177		$	1,614,123
Undistributed (distributions in excess of) net investment income	$	69,401	$	6,804		$	1,454	$	916		$	(450	)	$	—

See Accompanying Notes to Financial Statements.

134 SEMIANNUAL REPORT 2017

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Managed International Opportunities Fund						Ivy Micro Cap Growth Fund						Ivy Mid Cap Growth Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	395		$	2,216		$	(875	)	$	(2,085	)	$	(3,980	)	$	(9,176	)
Net realized gain (loss) on investments		6,650			25,656			(311	)		11,438			53,462			200,094
Net change in unrealized appreciation (depreciation)		13,232			(4,459	)		9,961			35,813			190,027			154,806
Net Increase in Net Assets Resulting from Operations		20,277			23,413			8,775			45,166			239,509			345,724
Distributions to Shareholders From:
Net investment income:
Class A		—			(740	)		—			—			—			—
Class B		—			(5	)		—			—			—			—
Class C		—			(21	)		—			—			—			—
Class E		—			(5	)		N/A			N/A			—			—
Class I		—			(1,368	)		—			—			—			—
Class N		—			N/A			—			—			—			—
Class R		—			(6	)		—			—			—			—
Class Y		—			(7	)		—			—			—			—
Net realized gains:
Class A		—			—			—			(1,153	)		—			(18,447	)
Class B		—			—			—			(22	)		—			(775	)
Class C		—			—			—			(104	)		—			(9,699	)
Class E		—			—			N/A			N/A			—			(297	)
Class I		—			—			—			(908	)		—			(46,076	)
Class N		—			N/A			—			(25	)		—			(2,118	)
Class R		—			—			—			(9	)		—			(2,185	)
Class Y		—			—			—			(14	)		—			(12,916	)
Total Distributions to Shareholders		—			(2,152	)		—			(2,235	)		—			(92,513	)
Capital Share Transactions		(2,521	)		(30,233	)		(10,555	)		(28,217	)		(117,943	)		(1,152,162	)
Net Increase (Decrease) in Net Assets		17,756			(8,972	)		(1,780	)		14,714			121,566			(898,951	)
Net Assets, Beginning of Period		188,757			197,729			166,285			151,571			2,220,335			3,119,286
Net Assets, End of Period	$	206,513		$	188,757		$	164,505		$	166,285		$	2,341,901		$	2,220,335
Undistributed (distributions in excess of) net investment income	$	312		$	(83	)	$	(1,412	)	$	(537	)	$	(16,066	)	$	(12,092	)

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 135

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Mid Cap Income Opportunities Fund						Ivy Municipal Bond Fund						Ivy Municipal High Income Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	3,066		$	2,959		$	2,537		$	5,174		$	18,005		$	54,188
Net realized gain (loss) on investments		(1,394	)		(3,376	)		(503	)		571			(47,171	)		15,663
Net change in unrealized appreciation (depreciation)		8,504			33,212			2,367			(6,650	)		48,395			(60,509	)
Net Increase (Decrease) in Net Assets Resulting from Operations		10,176			32,795			4,401			(905	)		19,229			9,342
Distributions to Shareholders From:
Net investment income:
Class A		(365	)		(935	)		(900	)		(2,484	)		(4,131	)		(13,623	)
Class B		N/A			N/A			(20	)		(37	)		(160	)		(456	)
Class C		—			(59	)		(220	)		(455	)		(2,628	)		(7,885	)
Class E		(12	)		(25	)		N/A			N/A			N/A			N/A
Class I		(841	)		(1,305	)		(1,358	)		(2,150	)		(11,310	)		(31,683	)
Class N		(229	)		(46	)		(2	)		N/A			(2	)		N/A
Class R		(4	)		(16	)		N/A			N/A			N/A			N/A
Class Y		(25	)		(66	)		(8	)		(19	)		(282	)		(747	)
Net realized gains:
Class A		—			—			—			—			—			—
Class B		N/A			N/A			—			—			—			—
Class C		—			—			—			—			—			—
Class E		—			—			N/A			N/A			N/A			N/A
Class I		—			—			—			—			—			—
Class N		—			—			—			N/A			—			N/A
Class R		—			—			N/A			N/A			N/A			N/A
Class Y		—			—			—			—			—			—
Total Distributions to Shareholders		(1,476	)		(2,452	)		(2,508	)		(5,145	)		(18,513	)		(54,394	)
Capital Share Transactions		2,460			176,566			(16,277	)		(28,843	)		(141,352	)		(256,644	)
Net Increase (Decrease) in Net Assets		11,160			206,909			(14,384	)		(34,893	)		(140,636	)		(301,696	)
Net Assets, Beginning of Period		326,991			120,082			191,882			226,775			1,059,897			1,361,593
Net Assets, End of Period	$	338,151		$	326,991		$	177,498		$	191,882		$	919,261		$	1,059,897
Undistributed net investment income	$	2,543		$	953		$	204		$	175		$	2,636		$	3,144

See Accompanying Notes to Financial Statements.

136 SEMIANNUAL REPORT 2017

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Small Cap Core Fund						Ivy Small Cap Growth Fund						Ivy Tax-Managed Equity Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17			Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	861		$	(760	)	$	(4,921	)	$	(7,898	)	$	21		$	(292	)
Net realized gain (loss) on investments		(4,715	)		33,991			46,342			156,935			4,733			(1,761	)
Net change in unrealized appreciation		37,698			50,310			55,758			51,691			6,940			15,874
Net Increase in Net Assets Resulting from Operations		33,844			83,541			97,179			200,728			11,694			13,821
Distributions to Shareholders From:
Net investment income:
Class A		—			—			—			—			—			—
Class B		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Class E		—			—			—			—			N/A			N/A
Class I		—			—			—			—			—			—
Class N		—			—			—			—			—			N/A
Class R		—			—			—			—			N/A			N/A
Class T		—			N/A			—			N/A			N/A			N/A
Class Y		—			—			—			—			—			—
Net realized gains:
Class A		—			(8,535	)		—			(14,096	)		—			—
Class B		—			(210	)		—			(616	)		—			—
Class C		—			(1,143	)		—			(11,991	)		—			—
Class E		—			(8	)		—			(434	)		N/A			N/A
Class I		—			(7,376	)		—			(11,926	)		—			—
Class N		—			(255	)		—			(2,876	)		—			N/A
Class R		—			(240	)		—			(2,819	)		N/A			N/A
Class T		—			N/A			—			N/A			N/A			N/A
Class Y		—			(751	)		—			(6,494	)		—			—
Total Distributions to Shareholders		—			(18,518	)		—			(51,252	)		—			—
Capital Share Transactions		53,223			214,352			31,652			(101,015	)		990			(15,692	)
Net Increase (Decrease) in Net Assets		87,067			279,375			128,831			48,461			12,684			(1,871	)
Net Assets, Beginning of Period		527,635			248,260			992,770			944,309			117,701			119,572
Net Assets, End of Period	$	614,702		$	527,635		$	1,121,601		$	992,770		$	130,385		$	117,701
Undistributed (distributions in excess of) net investment income	$	831		$	(30	)	$	(6,595	)	$	(1,674	)	$	(52	)	$	(73	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 137

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Value Fund
(In thousands)	Six months ended 9-30-17 (Unaudited)			Year ended 3-31-17
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	6,182		$	3,317
Net realized gain on investments		4,059			9,394
Net change in unrealized appreciation		6,501			35,331
Net Increase in Net Assets Resulting from Operations		16,742			48,042
Distributions to Shareholders From:
Net investment income:
Class A		(163	)		(2,877	)
Class B		—			(22	)
Class C		—			(189	)
Class E		(1	)		(3	)
Class I		(751	)		(1,498	)
Class N		(688	)		(144	)
Class R		—	*		(4	)
Class Y		(1	)		(35	)
Net realized gains:
Class A		—			(786	)
Class B		—			(22	)
Class C		—			(133	)
Class E		—			(1	)
Class I		—			(1,073	)
Class N		—			(52	)
Class R		—			(2	)
Class Y		—			(17	)
Total Distributions to Shareholders		(1,604	)		(6,858	)
Capital Share Transactions		121,519			1,486
Net Increase in Net Assets		136,657			42,670
Net Assets, Beginning of Period		322,109			279,439
Net Assets, End of Period	$	458,766		$	322,109
Undistributed net investment income	$	4,979		$	401

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

138 SEMIANNUAL REPORT 2017

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2017 SEMIANNUAL REPORT 139

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ADVANTUS BOND FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	10.62	$	0.14	$	0.16		$	0.30		$	(0.15	)	$	—		$	(0.15	)
Year ended 3-31-2017		10.54		0.24		0.11			0.35			(0.27	)		—			(0.27	)
Year ended 3-31-2016		10.78		0.24		(0.22	)		0.02			(0.26	)		—			(0.26	)
Year ended 3-31-2015		10.46		0.23		0.35			0.58			(0.26	)		—			(0.26	)
Year ended 3-31-2014		10.71		0.24		(0.19	)		0.05			(0.30	)		—			(0.30	)
Year ended 3-31-2013		10.44		0.26		0.39			0.65			(0.31	)		(0.07	)		(0.38	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		10.62		0.09		0.15			0.24			(0.09	)		—			(0.09	)
Year ended 3-31-2017		10.54		0.14		0.10			0.24			(0.16	)		—			(0.16	)
Year ended 3-31-2016		10.78		0.14		(0.22	)		(0.08	)		(0.16	)		—			(0.16	)
Year ended 3-31-2015		10.46		0.13		0.35			0.48			(0.16	)		—			(0.16	)
Year ended 3-31-2014		10.71		0.15		(0.20	)		(0.05	)		(0.20	)		—			(0.20	)
Year ended 3-31-2013		10.44		0.15		0.40			0.55			(0.21	)		(0.07	)		(0.28	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.62		0.10		0.16			0.26			(0.11	)		—			(0.11	)
Year ended 3-31-2017		10.54		0.17		0.10			0.27			(0.19	)		—			(0.19	)
Year ended 3-31-2016		10.78		0.16		(0.22	)		(0.06	)		(0.18	)		—			(0.18	)
Year ended 3-31-2015		10.46		0.15		0.35			0.50			(0.18	)		—			(0.18	)
Year ended 3-31-2014		10.71		0.17		(0.21	)		(0.04	)		(0.21	)		—			(0.21	)
Year ended 3-31-2013		10.44		0.18		0.40			0.58			(0.24	)		(0.07	)		(0.31	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		10.62		0.14		0.16			0.30			(0.15	)		—			(0.15	)
Year ended 3-31-2017		10.54		0.25		0.10			0.35			(0.27	)		—			(0.27	)
Year ended 3-31-2016		10.78		0.24		(0.23	)		0.01			(0.25	)		—			(0.25	)
Year ended 3-31-2015		10.46		0.22		0.35			0.57			(0.25	)		—			(0.25	)
Year ended 3-31-2014		10.71		0.24		(0.20	)		0.04			(0.29	)		—			(0.29	)
Year ended 3-31-2013		10.44		0.25		0.40			0.65			(0.31	)		(0.07	)		(0.38	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		10.62		0.17		0.15			0.32			(0.17	)		—			(0.17	)
Year ended 3-31-2017		10.54		0.29		0.09			0.38			(0.30	)		—			(0.30	)
Year ended 3-31-2016		10.78		0.27		(0.22	)		0.05			(0.29	)		—			(0.29	)
Year ended 3-31-2015		10.46		0.26		0.35			0.61			(0.29	)		—			(0.29	)
Year ended 3-31-2014		10.71		0.28		(0.20	)		0.08			(0.33	)		—			(0.33	)
Year ended 3-31-2013		10.44		0.29		0.40			0.69			(0.35	)		(0.07	)		(0.42	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		10.62		0.17		0.15			0.32			(0.17	)		—			(0.17	)
Year ended 3-31-2017		10.54		0.30		0.10			0.40			(0.32	)		—			(0.32	)
Year ended 3-31-2016		10.78		0.29		(0.23	)		0.06			(0.30	)		—			(0.30	)
Year ended 3-31-2015(6)		10.58		0.18		0.22			0.40			(0.20	)		—			(0.20	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		10.62		0.13		0.15			0.28			(0.13	)		—			(0.13	)
Year ended 3-31-2017		10.54		0.22		0.10			0.32			(0.24	)		—			(0.24	)
Year ended 3-31-2016		10.78		0.20		(0.21	)		(0.02	)		(0.22	)		—			(0.22	)
Year ended 3-31-2015		10.46		0.20		0.35			0.55			(0.23	)		—			(0.23	)
Year ended 3-31-2014		10.71		0.21		(0.19	)		0.02			(0.27	)		—			(0.27	)
Year ended 3-31-2013(8)		10.69		0.02		0.08			0.10			(0.08	)		—			(0.08	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		10.62		0.15		0.15			0.30			(0.15	)		—			(0.15	)
Year ended 3-31-2017		10.54		0.26		0.10			0.36			(0.28	)		—			(0.28	)
Year ended 3-31-2016		10.78		0.25		(0.23	)		0.02			(0.26	)		—			(0.26	)
Year ended 3-31-2015		10.46		0.23		0.35			0.58			(0.26	)		—			(0.26	)
Year ended 3-31-2014		10.71		0.25		(0.20	)		0.05			(0.30	)		—			(0.30	)
Year ended 3-31-2013		10.44		0.26		0.40			0.66			(0.32	)		(0.07	)		(0.39	)

* 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.

140 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 9-30-2017 (unaudited)	$	10.77		2.80	%	$	202			1.04	%(4)		2.60	%(4)		1.08	%(4)		2.56	%(4)		87	%
Year ended 3-31-2017		10.62		3.30			206			1.05			2.28			1.06			2.27			190
Year ended 3-31-2016		10.54		0.21			704			1.02			2.32			—			—			213
Year ended 3-31-2015		10.78		5.58			695			1.02			2.17			—			—			182
Year ended 3-31-2014		10.46		0.48			561			1.04			2.35			—			—			202
Year ended 3-31-2013		10.71		6.33			554			1.06			2.42			—			—			269
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		10.77		2.30			4			2.01	(4)		1.64	(4)		2.04	(4)		1.61	(4)		87
Year ended 3-31-2017		10.62		2.32			5			2.02			1.33			2.03			1.32			190
Year ended 3-31-2016		10.54		-0.73			7			1.96			1.37			—			—			213
Year ended 3-31-2015		10.78		4.56			6			2.00			1.19			—			—			182
Year ended 3-31-2014		10.46		-0.45			7			1.98			1.45			—			—			202
Year ended 3-31-2013		10.71		5.28			11			2.05			1.41			—			—			269
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.77		2.43			22			1.75	(4)		1.89	(4)		1.79	(4)		1.85	(4)		87
Year ended 3-31-2017		10.62		2.59			26			1.76			1.60			1.77			1.59			190
Year ended 3-31-2016		10.54		-0.55			33			1.78			1.56			—			—			213
Year ended 3-31-2015		10.78		4.76			28			1.80			1.38			—			—			182
Year ended 3-31-2014		10.46		-0.31			21			1.82			1.61			—			—			202
Year ended 3-31-2013		10.71		5.55			39			1.79			1.67			—			—			269
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		10.77		2.80			4			1.04	(4)		2.61	(4)		1.23	(4)		2.42	(4)		87
Year ended 3-31-2017		10.62		3.31			4			1.05			2.31			1.23			2.13			190
Year ended 3-31-2016		10.54		0.15			4			1.08			2.26			1.32			2.02			213
Year ended 3-31-2015		10.78		5.45			4			1.14			2.05			1.35			1.84			182
Year ended 3-31-2014		10.46		0.38			4			1.14			2.26			1.35			2.05			202
Year ended 3-31-2013		10.71		6.25			5			1.14			2.33			1.35			2.12			269
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		10.77		3.06			490			0.54	(4)		3.10	(4)		0.74	(4)		2.90	(4)		87
Year ended 3-31-2017		10.62		3.68			458			0.69			2.70			0.74			2.65			190
Year ended 3-31-2016		10.54		0.49			14			0.74			2.58			—			—			213
Year ended 3-31-2015		10.78		5.90			7			0.74			2.44			—			—			182
Year ended 3-31-2014		10.46		0.77			4			0.76			2.65			—			—			202
Year ended 3-31-2013		10.71		6.67			6			0.76			2.68			—			—			269
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		10.77		3.06			212			0.54	(4)		3.12	(4)		0.59	(4)		3.07	(4)		87
Year ended 3-31-2017		10.62		3.80			2			0.58			2.77			0.59			2.76			190
Year ended 3-31-2016		10.54		0.64			2			0.59			2.75			—			—			213
Year ended 3-31-2015(6)		10.78		3.81			1			0.58	(4)		2.54	(4)		—			—			182	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		10.77		2.67			11			1.29	(4)		2.34	(4)		1.32	(4)		2.31	(4)		87
Year ended 3-31-2017		10.62		3.04			8			1.32			2.07			1.33			2.06			190
Year ended 3-31-2016		10.54		-0.11			3			1.34			1.89			—			—			213
Year ended 3-31-2015		10.78		5.27			—	*		1.32			1.87			—			—			182
Year ended 3-31-2014		10.46		0.18			—	*		1.35			2.04			—			—			202
Year ended 3-31-2013(7)		10.71		0.96			—	*		1.30	(4)		0.82	(4)		—			—			269	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		10.77		2.85			5			0.95	(4)		2.69	(4)		0.98	(4)		2.66	(4)		87
Year ended 3-31-2017		10.62		3.39			5			0.97			2.39			0.98			2.38			190
Year ended 3-31-2016		10.54		0.26			3			0.98			2.35			—			—			213
Year ended 3-31-2015		10.78		5.62			3			0.99			2.20			—			—			182
Year ended 3-31-2014		10.46		0.51			3			1.00			2.42			—			—			202
Year ended 3-31-2013		10.71		6.39			5			1.00			2.49			—			—			269

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

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

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 141

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY CORE EQUITY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	13.55	$	0.02		$	1.10		$	1.12		$	—		$	—		$	—
Year ended 3-31-2017		12.73		0.03			1.28			1.31			(0.05	)		(0.44	)		(0.49	)
Year ended 3-31-2016		14.29		0.02			(0.60	)		(0.58	)		—	*		(0.98	)		(0.98	)
Year ended 3-31-2015		14.04		0.02			1.33			1.35			—			(1.10	)		(1.10	)
Year ended 3-31-2014		12.15		0.05			2.67			2.72			(0.04	)		(0.79	)		(0.83	)
Year ended 3-31-2013		10.91		0.04			1.33			1.37			(0.05	)		(0.08	)		(0.13	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		11.42		(0.04	)		0.92			0.88			—			—			—
Year ended 3-31-2017		10.85		(0.09	)		1.10			1.01			—			(0.44	)		(0.44	)
Year ended 3-31-2016		12.36		(0.09	)		(0.52	)		(0.61	)		—			(0.90	)		(0.90	)
Year ended 3-31-2015		12.32		(0.10	)		1.16			1.06			—			(1.02	)		(1.02	)
Year ended 3-31-2014		10.78		(0.07	)		2.36			2.29			—			(0.75	)		(0.75	)
Year ended 3-31-2013		9.75		(0.07	)		1.18			1.11			—			(0.08	)		(0.08	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		11.81		(0.03	)		0.96			0.93			—			—			—
Year ended 3-31-2017		11.19		(0.07	)		1.13			1.06			—			(0.44	)		(0.44	)
Year ended 3-31-2016		12.71		(0.07	)		(0.54	)		(0.61	)		—			(0.91	)		(0.91	)
Year ended 3-31-2015		12.63		(0.08	)		1.19			1.11			—			(1.03	)		(1.03	)
Year ended 3-31-2014		11.03		(0.05	)		2.41			2.36			—			(0.76	)		(0.76	)
Year ended 3-31-2013		9.95		(0.04	)		1.20			1.16			—			(0.08	)		(0.08	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		13.50		0.02			1.09			1.11			—			—			—
Year ended 3-31-2017		12.67		0.03			1.28			1.31			(0.04	)		(0.44	)		(0.48	)
Year ended 3-31-2016		14.23		0.00	*		(0.60	)		(0.60	)		—			(0.96	)		(0.96	)
Year ended 3-31-2015		14.00		(0.01	)		1.32			1.31			—			(1.08	)		(1.08	)
Year ended 3-31-2014		12.12		0.02			2.67			2.69			(0.02	)		(0.79	)		(0.81	)
Year ended 3-31-2013		10.89		0.03			1.32			1.35			(0.04	)		(0.08	)		(0.12	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		15.01		0.05			1.22			1.27			—			—			—
Year ended 3-31-2017		14.05		0.08			1.41			1.49			(0.09	)		(0.44	)		(0.53	)
Year ended 3-31-2016		15.67		0.07			(0.66	)		(0.59	)		(0.02	)		(1.01	)		(1.03	)
Year ended 3-31-2015		15.29		0.07			1.45			1.52			(0.03	)		(1.11	)		(1.14	)
Year ended 3-31-2014		13.15		0.09			2.91			3.00			(0.07	)		(0.79	)		(0.86	)
Year ended 3-31-2013		11.78		0.08			1.44			1.52			(0.07	)		(0.08	)		(0.15	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		15.03		0.05			1.23			1.28			—			—			—
Year ended 3-31-2017		14.07		0.08			1.43			1.51			(0.11	)		(0.44	)		(0.55	)
Year ended 3-31-2016		15.69		0.09			(0.67	)		(0.58	)		(0.02	)		(1.02	)		(1.04	)
Year ended 3-31-2015)(6)		15.69		0.06			1.06			1.12			(0.01	)		(1.11	)		(1.12	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		13.47		0.00	*		1.09			1.09			—			—			—
Year ended 3-31-2017		12.67		(0.02	)		1.27			1.25			(0.01	)		(0.44	)		(0.45	)
Year ended 3-31-2016		14.23		(0.02	)		(0.60	)		(0.62	)		—			(0.94	)		(0.94	)
Year ended 3-31-2015		14.01		(0.03	)		1.31			1.28			—			(1.06	)		(1.06	)
Year ended 3-31-2014		12.13		0.01			2.67			2.68			(0.01	)		(0.79	)		(0.80	)
Year ended 3-31-2013(8)		11.15		0.00			0.98			0.98			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		14.61		0.05			1.18			1.23			—			—			—
Year ended 3-31-2017		13.69		0.07			1.38			1.45			(0.09	)		(0.44	)		(0.53	)
Year ended 3-31-2016		15.29		0.07			(0.64	)		(0.57	)		(0.02	)		(1.01	)		(1.03	)
Year ended 3-31-2015		14.94		0.07			1.42			1.49			(0.03	)		(1.11	)		(1.14	)
Year ended 3-31-2014		12.87		0.09			2.84			2.93			(0.07	)		(0.79	)		(0.86	)
Year ended 3-31-2013		11.54		0.06			1.40			1.46			(0.05	)		(0.08	)		(0.13	)

* 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.

142 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	14.67		8.27	%	$	267			1.15	%(4)		0.31	%(4)		1.20	%(4)		0.26	%(4)		45	%
Year ended 3-31-2017		13.55		10.42			269			1.15			0.20			1.21			0.14			90
Year ended 3-31-2016		12.73		-4.22			546			1.15			0.15			1.18			0.12			62
Year ended 3-31-2015		14.29		9.86			611			1.15			0.13			1.17			0.11			65
Year ended 3-31-2014		14.04		22.76			499			1.15			0.35			1.20			0.30			61
Year ended 3-31-2013		12.15		12.66			320			1.23			0.35			1.26			0.32			60
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		12.30		7.79			6			2.10	(4)		-0.62	(4)		—			—			45
Year ended 3-31-2017		11.42		9.39			8			2.13			-0.79			—			—			90
Year ended 3-31-2016		10.85		-5.18			9			2.09			-0.79			—			—			62
Year ended 3-31-2015		12.36		8.80			11			2.08			-0.79			—			—			65
Year ended 3-31-2014		12.32		21.62			11			2.12			-0.62			—			—			61
Year ended 3-31-2013		10.78		11.49			10			2.24			-0.68			—			—			60
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		12.74		7.87			113			1.92	(4)		-0.45	(4)		—			—			45
Year ended 3-31-2017		11.81		9.60			116			1.92			-0.57			—			—			90
Year ended 3-31-2016		11.19		-5.00			129			1.91			-0.61			—			—			62
Year ended 3-31-2015		12.71		9.04			160			1.90			-0.62			—			—			65
Year ended 3-31-2014		12.63		21.79			144			1.94			-0.44			—			—			61
Year ended 3-31-2013		11.03		11.76			115			2.02			-0.43			—			—			60
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		14.61		8.22			13			1.13	(4)		0.33	(4)		1.40	(4)		0.06	(4)		45
Year ended 3-31-2017		13.50		10.49			12			1.16			0.19			1.42			-0.07			90
Year ended 3-31-2016		12.67		-4.39			10			1.29			0.02			1.43			-0.12			62
Year ended 3-31-2015		14.23		9.60			10			1.35			-0.06			1.43			-0.14			65
Year ended 3-31-2014		14.00		22.57			7			1.35			0.15			1.51			-0.01			61
Year ended 3-31-2013		12.12		12.53			4			1.35			0.25			1.61			-0.01			60
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		16.28		8.46			322			0.84	(4)		0.64	(4)		0.93	(4)		0.55	(4)		45
Year ended 3-31-2017		15.01		10.76			384			0.84			0.52			0.91			0.45			90
Year ended 3-31-2016		14.05		-3.93			172			0.84			0.46			0.90			0.40			62
Year ended 3-31-2015		15.67		10.14			234			0.84			0.45			0.90			0.39			65
Year ended 3-31-2014		15.29		23.18			153			0.84			0.63			0.91			0.56			61
Year ended 3-31-2013		13.15		13.08			60			0.91			0.69			0.93			0.67			60
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		16.31		8.52			114			0.77	(4)		0.65	(4)		—			—			45
Year ended 3-31-2017		15.03		10.84			112			0.76			0.58			—			—			90
Year ended 3-31-2016		14.07		-3.84			149			0.75			0.63			—			—			62
Year ended 3-31-2015(6)		15.69		7.39			4			0.75	(4)		0.60	(4)		—			—			65	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		14.56		8.09			3			1.51	(4)		-0.06	(4)		—			—			45
Year ended 3-31-2017		13.47		10.01			3			1.51			-0.15			—			—			90
Year ended 3-31-2016		12.67		-4.53			2			1.50			-0.18			—			—			62
Year ended 3-31-2015		14.23		9.40			2			1.50			-0.22			—			—			65
Year ended 3-31-2014		14.01		22.41			2			1.50			0.04			—			—			61
Year ended 3-31-2013(8)		12.13		8.79			—	*		1.50	(4)		-0.13	(4)		—			—			60	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		15.84		8.49			56			0.84	(4)		0.62	(4)		1.15	(4)		0.31	(4)		45
Year ended 3-31-2017		14.61		10.75			64			0.84			0.49			1.15			0.18			90
Year ended 3-31-2016		13.69		-3.91			113			0.84			0.46			1.15			0.15			62
Year ended 3-31-2015		15.29		10.18			105			0.84			0.45			1.15			0.14			65
Year ended 3-31-2014		14.94		23.14			68			0.84			0.64			1.16			0.32			61
Year ended 3-31-2013		12.87		12.82			27			1.09			0.48			1.18			0.40			60

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

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

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 143

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY CUNDILL GLOBAL VALUE FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	17.15	$	0.06		$	0.91		$	0.97		$	—		$	—	$	—
Year ended 3-31-2017		14.33		0.14			2.74			2.88			(0.06	)		—		(0.06	)
Year ended 3-31-2016		16.52		0.13			(2.19	)		(2.06	)		(0.13	)		—		(0.13	)
Year ended 3-31-2015		17.96		0.04			(1.48	)		(1.44	)		—			—		—
Year ended 3-31-2014		14.68		(0.03	)		3.32			3.29			(0.01	)		—		(0.01	)
Year ended 3-31-2013		13.44		0.01			1.23			1.24			—			—		—
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		15.58		(0.05	)		0.82			0.77			—			—		—
Year ended 3-31-2017		13.15		(0.07	)		2.50			2.43			—			—		—
Year ended 3-31-2016		15.20		(0.04	)		(2.01	)		(2.05	)		—			—		—
Year ended 3-31-2015		16.72		(0.15	)		(1.37	)		(1.52	)		—			—		—
Year ended 3-31-2014		13.81		(0.19	)		3.10			2.91			—			—		—
Year ended 3-31-2013		12.78		(0.11	)		1.14			1.03			—			—		—
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		16.12		0.01			0.85			0.86			—			—		—
Year ended 3-31-2017		13.50		0.03			2.59			2.62			—			—		—
Year ended 3-31-2016		15.56		0.04			(2.06	)		(2.02	)		(0.04	)		—		(0.04	)
Year ended 3-31-2015		17.03		(0.07	)		(1.40	)		(1.47	)		—			—		—
Year ended 3-31-2014		13.99		(0.12	)		3.16			3.04			—			—		—
Year ended 3-31-2013		12.88		(0.05	)		1.16			1.11			—			—		—
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		17.53		0.10			0.93			1.03			—			—		—
Year ended 3-31-2017		14.64		0.16			2.87			3.03			(0.14	)		—		(0.14	)
Year ended 3-31-2016		16.94		0.21			(2.25	)		(2.04	)		(0.26	)		—		(0.26	)
Year ended 3-31-2015		18.33		0.12			(1.51	)		(1.39	)		—			—		—
Year ended 3-31-2014		14.98		0.05			3.39			3.44			(0.09	)		—		(0.09	)
Year ended 3-31-2013		13.64		0.09			1.25			1.34			—			—		—
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		17.57		0.12			0.94			1.06			—			—		—
Year ended 3-31-2017		14.68		0.22			2.83			3.05			(0.16	)		—		(0.16	)
Year ended 3-31-2016		16.95		0.24			(2.25	)		(2.01	)		(0.26	)		—		(0.26	)
Year ended 3-31-2015(6)		18.57		0.08			(1.70	)		(1.62	)		—			—		—
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		17.13		0.05			0.90			0.95			—			—		—
Year ended 3-31-2017		14.32		0.10			2.76			2.86			(0.05	)		—		(0.05	)
Year ended 3-31-2016		16.47		0.11			(2.17	)		(2.06	)		(0.09	)		—		(0.09	)
Year ended 3-31-2015		17.94		0.02			(1.49	)		(1.47	)		—			—		—
Year ended 3-31-2014		14.68		(0.05	)		3.32			3.27			(0.01	)		—		(0.01	)
Year ended 3-31-2013(8)		13.62		(0.01	)		1.07			1.06			—			—		—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		17.39		0.08			0.92			1.00			—			—		—
Year ended 3-31-2017		14.53		0.16			2.80			2.96			(0.10	)		—		(0.10	)
Year ended 3-31-2016		16.77		0.17			(2.23	)		(2.06	)		(0.18	)		—		(0.18	)
Year ended 3-31-2015		18.20		0.07			(1.50	)		(1.43	)		—			—		—
Year ended 3-31-2014		14.86		(0.01	)		3.39			3.38			(0.04	)		—		(0.04	)
Year ended 3-31-2013		13.56		0.09			1.21			1.30			—			—		—

* 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.

144 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average  Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	18.12		5.66	%	$	96			1.60	%(4)		0.73	%(4)		1.76	%(4)		0.57	%(4)		21	%
Year ended 3-31-2017		17.15		20.10			98			1.65			0.91			1.81			0.75			51
Year ended 3-31-2016		14.33		-12.51			192			1.60			0.86			1.75			0.71			18
Year ended 3-31-2015		16.52		-8.02			288			1.56			0.24			1.70			0.10			28
Year ended 3-31-2014		17.96		22.41			332			1.61			-0.20			1.75			-0.34			47
Year ended 3-31-2013		14.68		9.23			196			1.86			0.05			1.91			—			26
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		16.35		5.01			1			2.97	(4)		-0.60	(4)		3.13	(4)		-0.76	(4)		21
Year ended 3-31-2017		15.58		18.48			1			2.94			-0.53			3.10			-0.69			51
Year ended 3-31-2016		13.15		-13.49			1			2.77			-0.30			2.92			-0.45			18
Year ended 3-31-2015		15.20		-9.09			2			2.73			-0.91			2.87			-1.05			28
Year ended 3-31-2014		16.72		21.07			4			2.72			-1.23			2.86			-1.37			47
Year ended 3-31-2013		13.81		8.06			6			2.94			-0.92			2.99			-0.97			26
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		16.98		5.40			12			2.18	(4)		0.18	(4)		2.34	(4)		0.02	(4)		21
Year ended 3-31-2017		16.12		19.41			14			2.21			0.19			2.37			0.03			51
Year ended 3-31-2016		13.50		-12.98			15			2.20			0.25			2.35			0.10			18
Year ended 3-31-2015		15.56		-8.63			19			2.19			-0.39			2.33			-0.53			28
Year ended 3-31-2014		17.03		21.73			24			2.22			-0.78			2.36			-0.92			47
Year ended 3-31-2013		13.99		8.62			21			2.39			-0.44			2.44			-0.49			26
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		18.56		5.93			88			1.18	(4)		1.18	(4)		1.34	(4)		1.02	(4)		21
Year ended 3-31-2017		17.53		20.70			96			1.17			0.96			1.33			0.80			51
Year ended 3-31-2016		14.64		-12.11			4			1.14			1.32			1.29			1.17			18
Year ended 3-31-2015		16.94		-7.58			5			1.12			0.64			1.26			0.50			28
Year ended 3-31-2014		18.33		22.98			7			1.14			0.27			1.28			0.13			47
Year ended 3-31-2013		14.98		9.82			4			1.24			0.70			1.29			0.65			26
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		18.63		6.03			1			0.99	(4)		1.31	(4)		1.15	(4)		1.15	(4)		21
Year ended 3-31-2017		17.57		20.81			1			1.00			1.41			1.16			1.25			51
Year ended 3-31-2016		14.68		-11.92			1			0.98			1.48			1.13			1.33			18
Year ended 3-31-2015(6)		16.95		-8.72			1			0.95	(4)		0.72	(4)		1.09	(4)		0.58	(4)		28	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		18.08		5.60			—	*		1.73	(4)		0.58	(4)		1.89	(4)		0.42	(4)		21
Year ended 3-31-2017		17.13		19.96			—	*		1.75			0.64			1.91			0.48			51
Year ended 3-31-2016		14.32		-12.53			—	*		1.73			0.73			1.88			0.58			18
Year ended 3-31-2015		16.47		-8.19			—	*		1.72			0.09			1.86			-0.05			28
Year ended 3-31-2014		17.94		22.30			—	*		1.72			-0.28			1.86			-0.42			47
Year ended 3-31-2013(8)		14.68		7.78			—	*		1.66	(4)		-0.37	(4)		1.71	(4)		-0.42	(4)		26	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		18.39		5.75			2			1.39	(4)		0.94	(4)		1.55	(4)		0.78	(4)		21
Year ended 3-31-2017		17.39		20.38			2			1.41			1.00			1.57			0.84			51
Year ended 3-31-2016		14.53		-12.32			2			1.40			1.13			1.55			0.98			18
Year ended 3-31-2015		16.77		-7.86			3			1.38			0.41			1.52			0.27			28
Year ended 3-31-2014		18.20		22.76			4			1.35			-0.04			1.49			-0.18			47
Year ended 3-31-2013		14.86		9.59			4			1.47			0.74			1.63			0.58			26

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

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

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 145

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY DIVIDEND OPPORTUNITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	18.13	$	0.15	$	1.06		$	1.21		$	(0.10	)	$	—		$	(0.10	)
Year ended 3-31-2017		16.99		0.21		1.90			2.11			(0.25	)		(0.72	)		(0.97	)
Year ended 3-31-2016		19.55		0.17		(1.04	)		(0.87	)		(0.14	)		(1.55	)		(1.69	)
Year ended 3-31-2015		20.27		0.22		1.39			1.61			(0.22	)		(2.11	)		(2.33	)
Year ended 3-31-2014		17.20		0.19		3.33			3.52			(0.16	)		(0.29	)		(0.45	)
Year ended 3-31-2013		15.70		0.23		1.48			1.71			(0.21	)		—			(0.21	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		17.81		0.07		1.03			1.10			(0.03	)		—			(0.03	)
Year ended 3-31-2017		16.68		0.07		1.86			1.93			(0.08	)		(0.72	)		(0.80	)
Year ended 3-31-2016		19.22		0.03		(1.02	)		(0.99	)		(0.01	)		(1.54	)		(1.55	)
Year ended 3-31-2015		19.97		0.06		1.37			1.43			(0.07	)		(2.11	)		(2.18	)
Year ended 3-31-2014		16.99		0.05		3.27			3.32			(0.05	)		(0.29	)		(0.34	)
Year ended 3-31-2013		15.54		0.09		1.48			1.57			(0.12	)		—			(0.12	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		17.91		0.08		1.04			1.12			(0.04	)		—			(0.04	)
Year ended 3-31-2017		16.76		0.09		1.88			1.97			(0.10	)		(0.72	)		(0.82	)
Year ended 3-31-2016		19.31		0.05		(1.03	)		(0.98	)		(0.02	)		(1.55	)		(1.57	)
Year ended 3-31-2015		20.05		0.08		1.38			1.46			(0.09	)		(2.11	)		(2.20	)
Year ended 3-31-2014		17.05		0.07		3.29			3.36			(0.07	)		(0.29	)		(0.36	)
Year ended 3-31-2013		15.59		0.11		1.49			1.60			(0.14	)		—			(0.14	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		18.07		0.16		1.05			1.21			(0.11	)		—			(0.11	)
Year ended 3-31-2017		16.94		0.22		1.89			2.11			(0.26	)		(0.72	)		(0.98	)
Year ended 3-31-2016		19.48		0.17		(1.03	)		(0.86	)		(0.13	)		(1.55	)		(1.68	)
Year ended 3-31-2015		20.21		0.19		1.39			1.58			(0.20	)		(2.11	)		(2.31	)
Year ended 3-31-2014		17.16		0.17		3.32			3.49			(0.15	)		(0.29	)		(0.44	)
Year ended 3-31-2013		15.66		0.21		1.49			1.70			(0.20	)		—			(0.20	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		18.20		0.17		1.07			1.24			(0.13	)		—			(0.13	)
Year ended 3-31-2017		17.07		0.25		1.91			2.16			(0.31	)		(0.72	)		(1.03	)
Year ended 3-31-2016		19.61		0.23		(1.04	)		(0.81	)		(0.18	)		(1.55	)		(1.73	)
Year ended 3-31-2015		20.33		0.28		1.40			1.68			(0.29	)		(2.11	)		(2.40	)
Year ended 3-31-2014		17.25		0.26		3.33			3.59			(0.22	)		(0.29	)		(0.51	)
Year ended 3-31-2013		15.73		0.28		1.49			1.77			(0.25	)		—			(0.25	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		18.23		0.19		1.07			1.26			(0.15	)		—			(0.15	)
Year ended 3-31-2017		17.10		0.28		1.92			2.20			(0.35	)		(0.72	)		(1.07	)
Year ended 3-31-2016		19.64		0.25		(1.03	)		(0.78	)		(0.21	)		(1.55	)		(1.76	)
Year ended 3-31-2015(6)		20.64		0.20		1.15			1.35			(0.24	)		(2.11	)		(2.35	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		18.12		0.12		1.05			1.17			(0.08	)		—			(0.08	)
Year ended 3-31-2017		16.97		0.16		1.90			2.06			(0.19	)		(0.72	)		(0.91	)
Year ended 3-31-2016		19.53		0.12		(1.03	)		(0.91	)		(0.10	)		(1.55	)		(1.65	)
Year ended 3-31-2015		20.25		0.16		1.40			1.56			(0.17	)		(2.11	)		(2.28	)
Year ended 3-31-2014		17.19		0.14		3.33			3.47			(0.12	)		(0.29	)		(0.41	)
Year ended 3-31-2013(8)		15.79		0.01		1.39			1.40			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		18.17		0.15		1.06			1.21			(0.11	)		—			(0.11	)
Year ended 3-31-2017		17.03		0.22		1.90			2.12			(0.26	)		(0.72	)		(0.98	)
Year ended 3-31-2016		19.58		0.19		(1.04	)		(0.85	)		(0.15	)		(1.55	)		(1.70	)
Year ended 3-31-2015		20.30		0.23		1.40			1.63			(0.24	)		(2.11	)		(2.35	)
Year ended 3-31-2014		17.23		0.21		3.33			3.54			(0.18	)		(0.29	)		(0.47	)
Year ended 3-31-2013		15.72		0.24		1.50			1.74			(0.23	)		—			(0.23	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

    .

146 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 9-30-2017 (unaudited)	$	19.24		6.69	%	$	138			1.26	%(4)		1.57	%(4)		—	%		—	%		12	%
Year ended 3-31-2017		18.13		12.62			140			1.26			1.20			—			—			54
Year ended 3-31-2016		16.99		-4.65			275			1.25			0.94			—			—			45
Year ended 3-31-2015		19.55		8.19			322			1.24			1.07			—			—			48
Year ended 3-31-2014		20.27		20.70			291			1.27			1.03			—			—			43
Year ended 3-31-2013		17.20		11.06			246			1.28			1.43			—			—			45
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		18.88		6.25			6			2.04	(4)		0.79	(4)		—			—			12
Year ended 3-31-2017		17.81		11.74			7			2.04			0.40			—			—			54
Year ended 3-31-2016		16.68		-5.32			8			2.03			0.17			—			—			45
Year ended 3-31-2015		19.22		7.33			12			2.01			0.30			—			—			48
Year ended 3-31-2014		19.97		19.70			13			2.05			0.25			—			—			43
Year ended 3-31-2013		16.99		10.10			11			2.13			0.60			—			—			45
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		18.99		6.25			36			1.95	(4)		0.88	(4)		—			—			12
Year ended 3-31-2017		17.91		11.93			41			1.93			0.50			—			—			54
Year ended 3-31-2016		16.76		-5.26			44			1.93			0.27			—			—			45
Year ended 3-31-2015		19.31		7.46			54			1.91			0.40			—			—			48
Year ended 3-31-2014		20.05		19.85			47			1.93			0.37			—			—			43
Year ended 3-31-2013		17.05		10.32			39			1.97			0.73			—			—			45
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		19.17		6.73			6			1.14	(4)(10)		1.68	(4)		1.50	(4)		1.32	(4)		12
Year ended 3-31-2017		18.07		12.68			6			1.16			1.25			1.56			0.85			54
Year ended 3-31-2016		16.94		-4.59			5			1.28			0.91			1.56			0.63			45
Year ended 3-31-2015		19.48		8.01			5			1.37			0.94			1.58			0.73			48
Year ended 3-31-2014		20.21		20.52			4			1.37			0.93			1.66			0.64			43
Year ended 3-31-2013		17.16		11.00			4			1.36			1.31			1.80			0.87			45
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		19.31		6.83			171			0.97	(4)		1.86	(4)		—			—			12
Year ended 3-31-2017		18.20		12.90			179			0.95			1.42			—			—			54
Year ended 3-31-2016		17.07		-4.27			22			0.94			1.25			—			—			45
Year ended 3-31-2015		19.61		8.50			23			0.93			1.38			—			—			48
Year ended 3-31-2014		20.33		21.06			19			0.94			1.36			—			—			43
Year ended 3-31-2013		17.25		11.45			15			0.93			1.74			—			—			45
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		19.34		6.91			2			0.81	(4)		2.04	(4)		—			—			12
Year ended 3-31-2017		18.23		13.11			2			0.80			1.55			—			—			54
Year ended 3-31-2016		17.10		-4.16			1			0.79			1.39			—			—			45
Year ended 3-31-2015(6)		19.64		6.76			—	*		0.79	(4)		1.46	(4)		—			—			48	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		19.21		6.50			—	*		1.55	(4)		1.31	(4)		—			—			12
Year ended 3-31-2017		18.12		12.31			1			1.53			0.88			—			—			54
Year ended 3-31-2016		16.97		-4.87			—	*		1.53			0.66			—			—			45
Year ended 3-31-2015		19.53		7.90			—	*		1.52			0.80			—			—			48
Year ended 3-31-2014		20.25		20.29			—	*		1.54			0.76			—			—			43
Year ended 3-31-2013(8)		17.19		8.93			—	*		1.51	(4)		0.23	(4)		—			—			45	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		19.27		6.66			5			1.20	(4)		1.62	(4)		—			—			12
Year ended 3-31-2017		18.17		12.67			6			1.19			1.25			—			—			54
Year ended 3-31-2016		17.03		-4.53			7			1.19			1.01			—			—			45
Year ended 3-31-2015		19.58		8.25			10			1.18			1.13			—			—			48
Year ended 3-31-2014		20.30		20.74			11			1.19			1.11			—			—			43
Year ended 3-31-2013		17.23		11.19			12			1.18			1.51			—			—			45

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

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

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

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

(10) Annualized expense ratio based on the period excluding reorganization expenses was 1.13%.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 147

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY EMERGING MARKETS EQUITY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	16.95	$	0.06		$	2.98		$	3.04		$	—		$	—	$	—
Year ended 3-31-2017		13.59		(0.02	)		3.38			3.36			—			—		—
Year ended 3-31-2016		16.04		0.00	*		(2.33	)		(2.33	)		(0.12	)		—		(0.12	)
Year ended 3-31-2015		15.04		0.04			1.08			1.12			(0.12	)		—		(0.12	)
Year ended 3-31-2014		13.88		0.02			1.22			1.24			(0.08	)		—		(0.08	)
Year ended 3-31-2013		13.98		0.03			(0.03	)		0.00			(0.10	)		—		(0.10	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		14.01		(0.03	)		2.46			2.43			—			—		—
Year ended 3-31-2017		11.34		(0.14	)		2.81			2.67			—			—		—
Year ended 3-31-2016		13.48		(0.12	)		(1.95	)		(2.07	)		(0.07	)		—		(0.07	)
Year ended 3-31-2015		12.66		(0.10	)		0.92			0.82			—			—		—
Year ended 3-31-2014		11.78		(0.12	)		1.00			0.88			—			—		—
Year ended 3-31-2013		11.92		(0.10	)		(0.04	)		(0.14	)		—	*		—		—	*
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		14.65		0.00	*		2.56			2.56			—			—		—
Year ended 3-31-2017		11.84		(0.12	)		2.93			2.81			—			—		—
Year ended 3-31-2016		14.05		(0.11	)		(2.03	)		(2.14	)		(0.07	)		—		(0.07	)
Year ended 3-31-2015		13.20		(0.09	)		0.95			0.86			(0.01	)		—		(0.01	)
Year ended 3-31-2014		12.23		(0.07	)		1.06			0.99			(0.02	)		—		(0.02	)
Year ended 3-31-2013		12.36		(0.06	)		(0.03	)		(0.09	)		(0.04	)		—		(0.04	)
Class E Shares(6)
Six-month period ended 9-30-2017 (unaudited)		17.20		0.09			3.02			3.11			—			—		—
Year ended 3-31-2017		13.76		0.01			3.43			3.44			—			—		—
Year ended 3-31-2016		16.23		0.03			(2.37	)		(2.34	)		(0.13	)		—		(0.13	)
Year ended 3-31-2015		15.23		0.05			1.10			1.15			(0.15	)		—		(0.15	)
Year ended 3-31-2014		14.04		0.06			1.25			1.31			(0.12	)		—		(0.12	)
Year ended 3-31-2013		14.12		0.09			(0.03	)		0.06			(0.14	)		—		(0.14	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		17.47		0.11			3.07			3.18			—			—		—
Year ended 3-31-2017		13.96		0.03			3.48			3.51			—			—		—
Year ended 3-31-2016		16.45		0.05			(2.40	)		(2.35	)		(0.14	)		—		(0.14	)
Year ended 3-31-2015		15.43		0.08			1.11			1.19			(0.17	)		—		(0.17	)
Year ended 3-31-2014		14.23		0.09			1.26			1.35			(0.15	)		—		(0.15	)
Year ended 3-31-2013		14.30		0.10			(0.02	)		0.08			(0.15	)		—		(0.15	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		17.56		0.14			3.06			3.20			—			—		—
Year ended 3-31-2017		14.01		0.06			3.49			3.55			—			—		—
Year ended 3-31-2016		16.50		0.06			(2.41	)		(2.35	)		(0.14	)		—		(0.14	)
Year ended 3-31-2015(7)		16.41		(0.03	)		0.26			0.23			(0.14	)		—		(0.14	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		16.83		0.04			2.96			3.00			—			—		—
Year ended 3-31-2017		13.53		(0.07	)		3.37			3.30			—			—		—
Year ended 3-31-2016		16.01		(0.05	)		(2.32	)		(2.37	)		(0.11	)		—		(0.11	)
Year ended 3-31-2015		15.02		(0.02	)		1.09			1.07			(0.08	)		—		(0.08	)
Year ended 3-31-2014		13.87		(0.01	)		1.23			1.22			(0.07	)		—		(0.07	)
Year ended 3-31-2013(9)		14.07		(0.04	)		(0.16	)		(0.20	)		—			—		—
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(11)		17.95		0.03			2.02			2.05			—			—		—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		17.27		0.08			3.03			3.11			—			—		—
Year ended 3-31-2017		13.84		(0.02	)		3.45			3.43			—			—		—
Year ended 3-31-2016		16.33		0.05			(2.42	)		(2.37	)		(0.12	)		—		(0.12	)
Year ended 3-31-2015		15.33		0.03			1.10			1.13			(0.13	)		—		(0.13	)
Year ended 3-31-2014		14.13		0.05			1.26			1.31			(0.11	)		—		(0.11	)
Year ended 3-31-2013		14.22		0.09			(0.05	)		0.04			(0.13	)		—		(0.13	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

(6) Class is closed to investment.

    .

148 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	19.99		17.94	%	$	482			1.49	%(4)		0.66	%(4)		—	%		—	%		22	%
Year ended 3-31-2017		16.95		24.72			293			1.55			-0.14			1.68			-0.27			59
Year ended 3-31-2016		13.59		-14.49			360			1.50			0.02			1.67			-0.15			98
Year ended 3-31-2015		16.04		7.48			436			1.50			0.23			1.67			0.06			103
Year ended 3-31-2014		15.04		8.95			536			1.73			0.17			—			—			138
Year ended 3-31-2013		13.88		-0.02			491			1.74			0.25			—			—			142
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		16.44		17.35			5			2.49	(4)		-0.33	(4)		—			—			22
Year ended 3-31-2017		14.01		23.54			4			2.50			-1.10			2.78			-1.38			59
Year ended 3-31-2016		11.34		-15.38			4			2.50			-0.99			2.72			-1.21			98
Year ended 3-31-2015		13.48		6.48			7			2.50			-0.75			2.71			-0.96			103
Year ended 3-31-2014		12.66		7.47			9			3.00			-1.04			—			—			138
Year ended 3-31-2013		11.78		-1.13			8			2.94			-0.88			—			—			142
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		17.21		17.47			68			2.16	(4)		-0.02	(4)		—			—			22
Year ended 3-31-2017		14.65		23.73			37			2.36			-0.96			—			—			59
Year ended 3-31-2016		11.84		-15.20			32			2.35			-0.83			—			—			98
Year ended 3-31-2015		14.05		6.56			35			2.40			-0.66			—			—			103
Year ended 3-31-2014		13.20		8.06			44			2.47			-0.59			—			—			138
Year ended 3-31-2013		12.23		-0.77			16			2.53			-0.48			—			—			142
Class E Shares(6)
Six-month period ended 9-30-2017 (unaudited)		20.31		18.08			—	*		1.23	(4)		0.93	(4)		—			—			22
Year ended 3-31-2017		17.20		25.00			—	*		1.35			0.05			—			—			59
Year ended 3-31-2016		13.76		-14.40			—	*		1.35			0.17			—			—			98
Year ended 3-31-2015		16.23		7.63			—	*		1.34			0.34			—			—			103
Year ended 3-31-2014		15.23		9.35			—	*		1.35			0.44			—			—			138
Year ended 3-31-2013		14.04		0.40			—	*		1.34			0.64			—			—			142
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		20.65		18.20			1,008			0.99	(4)		1.13	(4)		1.13	(4)		0.99	(4)		22
Year ended 3-31-2017		17.47		25.14			465			1.19			0.20			1.23			0.16			59
Year ended 3-31-2016		13.96		-14.30			116			1.22			0.35			—			—			98
Year ended 3-31-2015		16.45		7.78			117			1.23			0.49			—			—			103
Year ended 3-31-2014		15.43		9.52			139			1.22			0.62			—			—			138
Year ended 3-31-2013		14.23		0.55			147			1.22			0.69			—			—			142
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		20.76		18.22			241			0.97	(4)		1.40	(4)		—			—			22
Year ended 3-31-2017		17.56		25.34			18			1.07			0.37			—			—			59
Year ended 3-31-2016		14.01		-14.20			7			1.09			0.43			—			—			98
Year ended 3-31-2015(7)		16.50		1.47			6			1.08	(4)		-0.30	(4)		—			—			103	(8)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		19.83		17.83			18			1.73	(4)		0.43	(4)		—			—			22
Year ended 3-31-2017		16.83		24.39			11			1.82			-0.44			—			—			59
Year ended 3-31-2016		13.53		-14.82			5			1.85			-0.37			—			—			98
Year ended 3-31-2015		16.01		7.13			1			1.83			-0.16			—			—			103
Year ended 3-31-2014		15.02		8.75			1			1.83			-0.05			—			—			138
Year ended 3-31-2013(9)		13.87		-1.35			—	*		1.80	(4)		-1.09	(4)		—			—			142	(10)
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(11)		20.00		11.42			—	*		1.21	(4)		0.66	(4)		—			—			22	(12)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		20.38		18.01			42			1.38	(4)		0.80	(4)		—			—			22
Year ended 3-31-2017		17.27		24.78			21			1.50			-0.14			—			—			59
Year ended 3-31-2016		13.84		-14.48			10			1.47			0.33			—			—			98
Year ended 3-31-2015		16.33		7.41			10			1.50			0.20			1.53			0.17			103
Year ended 3-31-2014		15.33		9.19			11			1.47			0.34			—			—			138
Year ended 3-31-2013		14.13		0.31			5			1.47			0.63			—			—			142

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

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

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

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

(11) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(12) Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 149

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY EUROPEAN OPPORTUNITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	28.53	$	0.30		$	3.88		$	4.18		$	—		$	—	$	—
Year ended 3-31-2017		26.29		0.53			2.07			2.60			(0.36	)		—		(0.36	)
Year ended 3-31-2016		29.19		0.13			(2.93	)		(2.80	)		(0.10	)		—		(0.10	)
Year ended 3-31-2015		29.76		0.17			(0.24	)		(0.07	)		(0.50	)		—		(0.50	)
Year ended 3-31-2014		24.70		0.32			4.82			5.14			(0.08	)		—		(0.08	)
Year ended 3-31-2013		22.89		0.07			1.83			1.90			(0.09	)		—		(0.09	)
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		26.26		0.13			3.56			3.69			—			—		—
Year ended 3-31-2017		24.31		0.12			2.00			2.12			(0.17	)		—		(0.17	)
Year ended 3-31-2016		27.21		(0.13	)		(2.77	)		(2.90	)		—			—		—
Year ended 3-31-2015		27.66		(0.14	)		(0.22	)		(0.36	)		(0.09	)		—		(0.09	)
Year ended 3-31-2014		23.16		0.01			4.49			4.50			—			—		—
Year ended 3-31-2013		21.62		(0.15	)		1.69			1.54			—			—		—
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		26.94		0.20			3.65			3.85			—			—		—
Year ended 3-31-2017		24.89		0.24			2.06			2.30			(0.25	)		—		(0.25	)
Year ended 3-31-2016		27.73		(0.06	)		(2.78	)		(2.84	)		—			—		—
Year ended 3-31-2015		28.25		(0.02	)		(0.21	)		(0.23	)		(0.29	)		—		(0.29	)
Year ended 3-31-2014		23.53		0.16			4.56			4.72			—			—		—
Year ended 3-31-2013		21.86		(0.06	)		1.73			1.67			—			—		—
Class E Shares(5)
Six-month period ended 9-30-2017 (unaudited)		28.74		0.36			3.91			4.27			—			—		—
Year ended 3-31-2017		26.46		0.48			2.25			2.73			(0.45	)		—		(0.45	)
Year ended 3-31-2016		29.36		0.24			(2.98	)		(2.74	)		(0.16	)		—		(0.16	)
Year ended 3-31-2015		29.93		0.27			(0.21	)		0.06			(0.63	)		—		(0.63	)
Year ended 3-31-2014		24.84		0.44			4.85			5.29			(0.20	)		—		(0.20	)
Year ended 3-31-2013		23.02		0.18			1.84			2.02			(0.20	)		—		(0.20	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		28.78		0.39			3.91			4.30			—			—		—
Year ended 3-31-2017		26.50		0.39			2.37			2.76			(0.48	)		—		(0.48	)
Year ended 3-31-2016		29.39		0.20			(2.90	)		(2.70	)		(0.19	)		—		(0.19	)
Year ended 3-31-2015		29.97		0.32			(0.24	)		0.08			(0.66	)		—		(0.66	)
Year ended 3-31-2014		24.87		0.48			4.85			5.33			(0.23	)		—		(0.23	)
Year ended 3-31-2013		23.04		0.26			1.81			2.07			(0.24	)		—		(0.24	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		28.92		0.29			4.05			4.34			—			—		—
Year ended 3-31-2017		26.62		0.59			2.23			2.82			(0.52	)		—		(0.52	)
Year ended 3-31-2016		29.51		0.31			(2.98	)		(2.67	)		(0.22	)		—		(0.22	)
Year ended 3-31-2015(6)		29.18		0.05			0.85			0.90			(0.57	)		—		(0.57	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		28.50		0.28			3.88			4.16			—			—		—
Year ended 3-31-2017		26.27		0.34			2.23			2.57			(0.34	)		—		(0.34	)
Year ended 3-31-2016		29.18		0.08			(2.93	)		(2.85	)		(0.06	)		—		(0.06	)
Year ended 3-31-2015		29.75		0.12			(0.21	)		(0.09	)		(0.48	)		—		(0.48	)
Year ended 3-31-2014		24.70		0.31			4.82			5.13			(0.08	)		—		(0.08	)
Year ended 3-31-2013(8)		24.16		0.00			0.54			0.54			—			—		—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		28.75		0.33			3.92			4.25			—			—		—
Year ended 3-31-2017		26.46		0.47			2.21			2.68			(0.39	)		—		(0.39	)
Year ended 3-31-2016		29.38		0.16			(2.95	)		(2.79	)		(0.13	)		—		(0.13	)
Year ended 3-31-2015		29.95		0.17			(0.16	)		0.01			(0.58	)		—		(0.58	)
Year ended 3-31-2014		24.86		0.44			4.81			5.25			(0.16	)		—		(0.16	)
Year ended 3-31-2013		23.04		0.15			1.85			2.00			(0.18	)		—		(0.18	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

(3) Annualized.

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

    .

150 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			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	32.71		14.69	%	$	80			1.66	%(3)		1.99	%(3)		41	%
Year ended 3-31-2017		28.53		9.98			75			1.71			2.00			79
Year ended 3-31-2016		26.29		-9.62			166			1.64			0.46			91
Year ended 3-31-2015		29.19		-0.13			150			1.70			0.57			172
Year ended 3-31-2014		29.76		20.83			163			1.76			1.17			116
Year ended 3-31-2013		24.70		8.31			162			1.81			0.32			71
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		29.95		14.05			1			2.76	(3)		0.95	(3)		41
Year ended 3-31-2017		26.26		8.78			1			2.81			0.48			79
Year ended 3-31-2016		24.31		-10.66			1			2.73			-0.50			91
Year ended 3-31-2015		27.21		-1.27			2			2.90			-0.50			172
Year ended 3-31-2014		27.66		19.43			2			2.91			0.04			116
Year ended 3-31-2013		23.16		7.12			3			2.89			-0.68			71
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		30.79		14.29			7			2.31	(3)		1.38	(3)		41
Year ended 3-31-2017		26.94		9.32			8			2.34			0.94			79
Year ended 3-31-2016		24.89		-10.24			11			2.29			-0.22			91
Year ended 3-31-2015		27.73		-0.75			10			2.35			-0.06			172
Year ended 3-31-2014		28.25		20.06			11			2.37			0.61			116
Year ended 3-31-2013		23.53		7.64			9			2.43			-0.26			71
Class E Shares(5)
Six-month period ended 9-30-2017 (unaudited)		33.01		14.86			—	*		1.31	(3)		2.31	(3)		41
Year ended 3-31-2017		28.74		10.42			—	*		1.33			1.79			79
Year ended 3-31-2016		26.46		-9.37			—	*		1.31			0.84			91
Year ended 3-31-2015		29.36		0.30			—	*		1.31			0.92			172
Year ended 3-31-2014		29.93		21.34			—	*		1.33			1.62			116
Year ended 3-31-2013		24.84		8.83			—	*		1.31			0.79			71
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		33.08		14.94			71			1.23	(3)		2.54	(3)		41
Year ended 3-31-2017		28.78		10.54			92			1.22			1.44			79
Year ended 3-31-2016		26.50		-9.24			43			1.18			0.72			91
Year ended 3-31-2015		29.39		0.38			27			1.21			1.09			172
Year ended 3-31-2014		29.97		21.50			31			1.19			1.76			116
Year ended 3-31-2013		24.87		8.96			37			1.18			1.13			71
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		33.26		15.01			104			1.03	(3)		1.77	(3)		41
Year ended 3-31-2017		28.92		10.71			1			1.06			2.17			79
Year ended 3-31-2016		26.62		-9.11			2			1.04			1.07			91
Year ended 3-31-2015(6)		29.51		3.20			2			1.08	(3)		0.26	(3)		172	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		32.66		14.60			1			1.79	(3)		1.80	(3)		41
Year ended 3-31-2017		28.50		9.88			1			1.81			1.29			79
Year ended 3-31-2016		26.27		-9.77			—	*		1.79			0.28			91
Year ended 3-31-2015		29.18		-0.21			—	*		1.81			0.42			172
Year ended 3-31-2014		29.75		20.73			—	*		1.79			1.15			116
Year ended 3-31-2013(8)		24.70		2.28			—	*		1.74	(3)		0.02	(3)		71	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		33.00		14.78			1			1.44	(3)		2.11	(3)		41
Year ended 3-31-2017		28.75		10.24			1			1.50			1.74			79
Year ended 3-31-2016		26.46		-9.52			1			1.47			0.57			91
Year ended 3-31-2015		29.38		0.15			2			1.47			0.58			172
Year ended 3-31-2014		29.95		21.17			3			1.46			1.57			116
Year ended 3-31-2013		24.86		8.71			1			1.42			0.66			71

(5) Class share is closed to investment.

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

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 151

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL BOND FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month  period ended 9-30-2017 (unaudited)	$	9.68	$	0.15	$	0.09		$	0.24		$	(0.09	)	$	—		$	(0.09	)
Year ended 3-31-2017		9.17		0.34		0.37			0.71			(0.20	)		—			(0.20	)
Year ended 3-31-2016		9.59		0.34		(0.49	)		(0.15	)		(0.27	)		—			(0.27	)
Year ended 3-31-2015		10.06		0.34		(0.49	)		(0.15	)		(0.32	)		—			(0.32	)
Year ended 3-31-2014		10.26		0.35		(0.19	)		0.16			(0.34	)		(0.02	)		(0.36	)
Year ended 3-31-2013		10.20		0.40		0.11			0.51			(0.42	)		(0.03	)		(0.45	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		9.67		0.12		0.08			0.20			(0.05	)		—			(0.05	)
Year ended 3-31-2017		9.16		0.26		0.38			0.64			(0.13	)		—			(0.13	)
Year ended 3-31-2016		9.58		0.27		(0.49	)		(0.22	)		(0.20	)		—			(0.20	)
Year ended 3-31-2015		10.06		0.26		(0.49	)		(0.23	)		(0.25	)		—			(0.25	)
Year ended 3-31-2014		10.25		0.27		(0.18	)		0.09			(0.26	)		(0.02	)		(0.28	)
Year ended 3-31-2013		10.19		0.32		0.11			0.43			(0.34	)		(0.03	)		(0.37	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		9.68		0.11		0.09			0.20			(0.05	)		—			(0.05	)
Year ended 3-31-2017		9.16		0.26		0.39			0.65			(0.13	)		—			(0.13	)
Year ended 3-31-2016		9.59		0.27		(0.50	)		(0.23	)		(0.20	)		—			(0.20	)
Year ended 3-31-2015		10.06		0.26		(0.48	)		(0.22	)		(0.25	)		—			(0.25	)
Year ended 3-31-2014		10.25		0.27		(0.18	)		0.09			(0.26	)		(0.02	)		(0.28	)
Year ended 3-31-2013		10.19		0.32		0.11			0.43			(0.34	)		(0.03	)		(0.37	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		9.68		0.16		0.09			0.25			(0.10	)		—			(0.10	)
Year ended 3-31-2017		9.16		0.34		0.40			0.74			(0.22	)		—			(0.22	)
Year ended 3-31-2016		9.59		0.36		(0.49	)		(0.13	)		(0.30	)		—			(0.30	)
Year ended 3-31-2015		10.06		0.36		(0.48	)		(0.12	)		(0.35	)		—			(0.35	)
Year ended 3-31-2014		10.25		0.37		(0.18	)		0.19			(0.36	)		(0.02	)		(0.38	)
Year ended 3-31-2013		10.19		0.42		0.11			0.53			(0.44	)		(0.03	)		(0.47	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		9.68		0.14		0.11			0.25			(0.10	)		—			(0.10	)
Year ended 3-31-2017		9.17		0.33		0.40			0.73			(0.22	)		—			(0.22	)
Year ended 3-31-2016		9.59		0.36		(0.48	)		(0.12	)		(0.30	)		—			(0.30	)
Year ended 3-31-2015(6)		10.15		0.24		(0.56	)		(0.32	)		(0.24	)		—			(0.24	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		9.66		0.13		0.09			0.22			(0.07	)		—			(0.07	)
Year ended 3-31-2017		9.15		0.27		0.39			0.66			(0.15	)		—			(0.15	)
Year ended 3-31-2016		9.57		0.29		(0.48	)		(0.19	)		(0.23	)		—			(0.23	)
Year ended 3-31-2015		10.05		0.29		(0.49	)		(0.20	)		(0.28	)		—			(0.28	)
Year ended 3-31-2014		10.24		0.29		(0.18	)		0.11			(0.28	)		(0.02	)		(0.30	)
Year ended 3-31-2013(8)		10.17		0.09		0.04			0.13			(0.06	)		—			(0.06	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		9.68		0.15		0.09			0.24			(0.09	)		—			(0.09	)
Year ended 3-31-2017		9.17		0.33		0.38			0.71			(0.20	)		—			(0.20	)
Year ended 3-31-2016		9.59		0.34		(0.49	)		(0.15	)		(0.27	)		—			(0.27	)
Year ended 3-31-2015		10.07		0.34		(0.50	)		(0.16	)		(0.32	)		—			(0.32	)
Year ended 3-31-2014		10.26		0.34		(0.18	)		0.16			(0.33	)		(0.02	)		(0.35	)
Year ended 3-31-2013		10.20		0.40		0.11			0.51			(0.42	)		(0.03	)		(0.45	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

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

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

152 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 9-30-2017 (unaudited)	$	9.83		2.49	%	$	46			1.01	%(4)(10)		3.10	%(4)		1.34	%(4)		2.77	%(4)		21	%
Year ended 3-31-2017		9.68		7.81			47			0.99			3.63			1.33			3.29			20
Year ended 3-31-2016		9.17		-1.54			133			0.99			3.60			1.29			3.30			14
Year ended 3-31-2015		9.59		-1.54			177			0.99			3.39			1.22			3.16			26
Year ended 3-31-2014		10.06		1.65			187			0.99			3.43			1.25			3.17			21
Year ended 3-31-2013		10.26		5.12			174			0.99			3.92			1.24			3.67			26
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		9.82		2.11			2			1.76	(4)(11)		2.36	(4)		2.21	(4)		1.91	(4)		21
Year ended 3-31-2017		9.67		7.01			3			1.74			2.73			2.15			2.32			20
Year ended 3-31-2016		9.16		-2.29			3			1.74			2.84			2.16			2.42			14
Year ended 3-31-2015		9.58		-2.36			5			1.74			2.64			2.10			2.28			26
Year ended 3-31-2014		10.06		0.90			6			1.74			2.67			2.10			2.31			21
Year ended 3-31-2013		10.25		4.34			7			1.74			3.17			2.15			2.76			26
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		9.83		2.10			16			1.77	(4)(12)		2.33	(4)		1.99	(4)		2.11	(4)		21
Year ended 3-31-2017		9.68		7.13			16			1.74			2.72			1.95			2.51			20
Year ended 3-31-2016		9.16		-2.39			20			1.74			2.85			1.91			2.68			14
Year ended 3-31-2015		9.59		-2.26			31			1.74			2.64			1.87			2.51			26
Year ended 3-31-2014		10.06		0.90			33			1.74			2.67			1.88			2.53			21
Year ended 3-31-2013		10.25		4.34			44			1.74			3.18			1.90			3.02			26
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		9.83		2.63			96			0.77	(4)(13)		3.34	(4)		0.99	(4)		3.12	(4)		21
Year ended 3-31-2017		9.68		8.19			88			0.74			3.54			0.95			3.33			20
Year ended 3-31-2016		9.16		-1.39			23			0.74			3.85			0.90			3.69			14
Year ended 3-31-2015		9.59		-1.29			53			0.74			3.65			0.87			3.52			26
Year ended 3-31-2014		10.06		1.91			58			0.74			3.67			0.89			3.52			21
Year ended 3-31-2013		10.25		5.39			59			0.74			4.13			0.89			3.97			26
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		9.83		2.62			26			0.76	(4)(14)		2.99	(4)		0.83	(4)		2.92	(4)		21
Year ended 3-31-2017		9.68		8.06			3			0.75			3.50			0.78			3.47			20
Year ended 3-31-2016		9.17		-1.30			—	*		0.76			3.84			0.76			3.84			14
Year ended 3-31-2015(6)		9.59		-3.23			—	*		0.70	(4)		3.62	(4)		—			—			26	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		9.81		2.24			1			1.50	(4)		2.61	(4)		1.58	(4)		2.53	(4)		21
Year ended 3-31-2017		9.66		7.29			1			1.50			2.90			1.53			2.87			20
Year ended 3-31-2016		9.15		-2.02			—	*		1.49			3.11			1.49			3.11			14
Year ended 3-31-2015		9.57		-2.10			—	*		1.46			2.90			—			—			26
Year ended 3-31-2014		10.05		1.14			—	*		1.48			2.93			—			—			21
Year ended 3-31-2013(8)		10.24		1.30			—	*		1.45	(4)		3.10	(4)		—			—			26	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		9.83		2.49			3			1.02	(4)(15)		3.08	(4)		1.21	(4)		2.89	(4)		21
Year ended 3-31-2017		9.68		7.81			3			0.99			3.43			1.18			3.24			20
Year ended 3-31-2016		9.17		-1.54			3			0.99			3.58			1.16			3.41			14
Year ended 3-31-2015		9.59		-1.63			5			0.99			3.40			1.12			3.27			26
Year ended 3-31-2014		10.07		1.65			8			0.99			3.42			1.13			3.28			21
Year ended 3-31-2013		10.26		5.12			5			0.99			3.94			1.14			3.78			26

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

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

(10) Annualized expense ratio based on the period excluding reorganization expenses was 0.99%.

(11) Annualized expense ratio based on the period excluding reorganization expenses was 1.74%.

(12) Annualized expense ratio based on the period excluding reorganization expenses was 1.74%.

(13) Annualized expense ratio based on the period excluding reorganization expenses was 0.74%.

(14) Annualized expense ratio based on the period excluding reorganization expenses was 0.74%.

(15) Annualized expense ratio based on the period excluding reorganization expenses was 0.99%.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 153

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL EQUITY INCOME FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	12.48	$	0.21	$	1.05		$	1.26		$	(0.23	)	$	—		$	(0.23	)
Year ended 3-31-2017		11.88		0.53		0.50			1.03			(0.43	)		—			(0.43	)
Year ended 3-31-2016		13.32		0.40		(1.09	)		(0.69	)		(0.39	)		(0.36	)		(0.75	)
Year ended 3-31-2015		13.27		0.39		0.36			0.75			(0.44	)		(0.26	)		(0.70	)
Year ended 3-31-2014		11.82		0.57		1.44			2.01			(0.46	)		(0.10	)		(0.56	)
Year ended 3-31-2013(5)		10.00		0.35		1.84			2.19			(0.28	)		(0.09	)		(0.37	)
Class B Shares(7)
Six-month period ended 9-30-2017 (unaudited)		12.47		0.17		1.05			1.22			(0.18	)		—			(0.18	)
Year ended 3-31-2017		11.87		0.35		0.60			0.95			(0.35	)		—			(0.35	)
Year ended 3-31-2016		13.31		0.32		(1.09	)		(0.77	)		(0.31	)		(0.36	)		(0.67	)
Year ended 3-31-2015		13.27		0.32		0.34			0.66			(0.36	)		(0.26	)		(0.62	)
Year ended 3-31-2014		11.81		0.47		1.46			1.93			(0.37	)		(0.10	)		(0.47	)
Year ended 3-31-2013(5)		10.00		0.27		1.85			2.12			(0.22	)		(0.09	)		(0.31	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		12.47		0.17		1.05			1.22			(0.18	)		—			(0.18	)
Year ended 3-31-2017		11.87		0.36		0.59			0.95			(0.35	)		—			(0.35	)
Year ended 3-31-2016		13.31		0.31		(1.08	)		(0.77	)		(0.31	)		(0.36	)		(0.67	)
Year ended 3-31-2015		13.27		0.30		0.36			0.66			(0.36	)		(0.26	)		(0.62	)
Year ended 3-31-2014		11.81		0.50		1.44			1.94			(0.38	)		(0.10	)		(0.48	)
Year ended 3-31-2013)(5)		10.00		0.27		1.85			2.12			(0.22	)		(0.09	)		(0.31	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		12.48		0.24		1.05			1.29			(0.25	)		—			(0.25	)
Year ended 3-31-2017		11.88		0.39		0.68			1.07			(0.47	)		—			(0.47	)
Year ended 3-31-2016		13.33		0.45		(1.10	)		(0.65	)		(0.44	)		(0.36	)		(0.80	)
Year ended 3-31-2015		13.28		0.43		0.37			0.80			(0.49	)		(0.26	)		(0.75	)
Year ended 3-31-2014		11.82		0.61		1.46			2.07			(0.51	)		(0.10	)		(0.61	)
Year ended 3-31-2013(5)		10.00		0.37		1.85			2.22			(0.31	)		(0.09	)		(0.40	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		12.49		0.24		1.06			1.30			(0.26	)		—			(0.26	)
Year ended 3-31-2017		11.89		0.48		0.61			1.09			(0.49	)		—			(0.49	)
Year ended 3-31-2016		13.33		0.47		(1.09	)		(0.62	)		(0.46	)		(0.36	)		(0.82	)
Year ended 3-31-2015(8)		13.37		0.25		0.27			0.52			(0.30	)		(0.26	)		(0.56	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		12.48		0.19		1.06			1.25			(0.21	)		—			(0.21	)
Year ended 3-31-2017		11.88		0.39		0.61			1.00			(0.40	)		—			(0.40	)
Year ended 3-31-2016		13.32		0.37		(1.09	)		(0.72	)		(0.36	)		(0.36	)		(0.72	)
Year ended 3-31-2015		13.28		0.36		0.35			0.71			(0.41	)		(0.26	)		(0.67	)
Year ended 3-31-2014		11.82		0.52		1.46			1.98			(0.42	)		(0.10	)		(0.52	)
Year ended 3-31-2013(10)		11.28		0.11		0.46			0.57			(0.03	)		—			(0.03	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		12.48		0.22		1.04			1.26			(0.23	)		—			(0.23	)
Year ended 3-31-2017		11.87		0.44		0.61			1.05			(0.44	)		—			(0.44	)
Year ended 3-31-2016		13.32		0.42		(1.10	)		(0.68	)		(0.41	)		(0.36	)		(0.77	)
Year ended 3-31-2015		13.28		0.41		0.35			0.76			(0.46	)		(0.26	)		(0.72	)
Year ended 3-31-2014		11.82		0.58		1.46			2.04			(0.48	)		(0.10	)		(0.58	)
Year ended 3-31-2013(5)		10.00		0.34		1.86			2.20			(0.29	)		(0.09	)		(0.38	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized

154 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 9-30-2017 (unaudited)	$	13.51		10.13	%	$	67			1.30	%(4)		3.26	%(4)		—	%		—	%		41	%
Year ended 3-31-2017		12.48		8.87			70			1.30			4.45			1.38			4.37			103
Year ended 3-31-2016		11.88		-5.22			248			1.30			3.19			1.36			3.13			73
Year ended 3-31-2015		13.32		5.84			253			1.30			2.94			1.38			2.86			137
Year ended 3-31-2014		13.27		17.46			184			1.30			4.51			1.48			4.33			98
Year ended 3-31-2013(5)		11.82		22.15			59			1.29	(4)		3.82	(4)		1.68	(4)		3.43	(4)		73	(6)
Class B Shares(7)
Six-month period ended 9-30-2017 (unaudited)		13.51		9.87			2			1.94	(4)		2.63	(4)		—			—			41
Year ended 3-31-2017		12.47		8.17			2			1.95			2.88			—			—			103
Year ended 3-31-2016		11.87		-5.84			2			1.94			2.56			—			—			73
Year ended 3-31-2015		13.31		5.08			2			1.98			2.40			—			—			137
Year ended 3-31-2014		13.27		16.68			2			2.04			3.73			2.05			3.72			98
Year ended 3-31-2013(5)		11.81		22.41			1			2.01	(4)		2.89	(4)		2.21	(4)		2.69	(4)		73	(6)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		13.51		9.86			12			1.95	(4)		2.60	(4)		—			—			41
Year ended 3-31-2017		12.47		8.17			12			1.95			2.95			—			—			103
Year ended 3-31-2016		11.87		-5.83			14			1.93			2.51			—			—			73
Year ended 3-31-2015		13.31		5.10			13			1.95			2.28			—			—			137
Year ended 3-31-2014		13.27		16.75			8			1.99			3.91			2.04			3.86			98
Year ended 3-31-2013(5)		11.81		21.46			4			1.95	(4)		2.95	(4)		2.15	(4)		2.75	(4)		73	(6)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		13.52		10.39			219			0.99	(4)		3.61	(4)		—			—			41
Year ended 3-31-2017		12.48		9.26			250			0.94			3.18			0.96			3.16			103
Year ended 3-31-2016		11.88		-4.96			20			0.94			3.57			0.95			3.56			73
Year ended 3-31-2015		13.33		6.22			22			0.94			3.21			0.98			3.17			137
Year ended 3-31-2014		13.28		17.97			15			0.94			4.86			1.06			4.74			98
Year ended 3-31-2013(5)		11.82		22.47			12			0.94	(4)		3.95	(4)		1.29	(4)		3.60	(4)		73	(6)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		13.53		10.48			1			0.82	(4)		3.70	(4)		—			—			41
Year ended 3-31-2017		12.49		9.39			1			0.81			3.99			—			—			103
Year ended 3-31-2016		11.89		-4.74			1			0.81			3.73			—			—			73
Year ended 3-31-2015(8)		13.33		4.05			1			0.83	(4)		2.94	(4)		—			—			137	(9)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		13.52		10.07			—	*		1.57	(4)		2.97	(4)		—			—			41
Year ended 3-31-2017		12.48		8.58			—	*		1.56			3.23			—			—			103
Year ended 3-31-2016		11.88		-5.46			—	*		1.56			2.96			—			—			73
Year ended 3-31-2015		13.32		5.47			—	*		1.58			2.75			—			—			137
Year ended 3-31-2014		13.28		17.11			—	*		1.65			4.11			1.66			4.10			98
Year ended 3-31-2013(10)		11.82		5.05			—	*		1.67	(4)		3.36	(4)		1.87	(4)		3.16	(4)		73	(6)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		13.51		10.19			5			1.19	(4)		3.35	(4)		1.20	(4)		3.34	(4)		41
Year ended 3-31-2017		12.48		9.08			4			1.19			3.67			1.21			3.65			103
Year ended 3-31-2016		11.87		-5.15			4			1.19			3.32			1.22			3.29			73
Year ended 3-31-2015		13.32		5.88			5			1.19			3.11			1.23			3.07			137
Year ended 3-31-2014		13.28		17.68			4			1.19			4.60			1.31			4.48			98
Year ended 3-31-2013(5)		11.82		22.25			4			1.18	(4)		3.70	(4)		1.54	(4)		3.34	(4)		73	(6)

(5) For the period from June 4, 2012 (commencement of operations of the class) through March 31, 2013.

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

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

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 155

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	42.67	$	0.11		$	4.18		$	4.29		$	—		$	—		$	—
Year ended 3-31-2017		39.23		0.04			3.40			3.44			—			—			—
Year ended 3-31-2016		42.75		(0.09	)		(2.49	)		(2.58	)		(0.04	)		(0.90	)		(0.94	)
Year ended 3-31-2015		41.15		0.19			1.95			2.14			(0.03	)		(0.51	)		(0.54	)
Year ended 3-31-2014		35.50		0.19			5.92			6.11			(0.46	)		—			(0.46	)
Year ended 3-31-2013		33.45		0.27			2.07			2.34			(0.29	)		—			(0.29	)
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		36.62		(0.10	)		3.58			3.48			—			—			—
Year ended 3-31-2017		34.07		(0.45	)		3.00			2.55			—			—			—
Year ended 3-31-2016		37.61		(0.44	)		(2.20	)		(2.64	)		—			(0.90	)		(0.90	)
Year ended 3-31-2015		36.59		(0.15	)		1.68			1.53			—			(0.51	)		(0.51	)
Year ended 3-31-2014		31.63		(0.16	)		5.25			5.09			(0.13	)		—			(0.13	)
Year ended 3-31-2013		29.88		(0.05	)		1.84			1.79			(0.04	)		—			(0.04	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		36.98		(0.04	)		3.61			3.57			—			—			—
Year ended 3-31-2017		34.26		(0.29	)		3.01			2.72			—			—			—
Year ended 3-31-2016		37.68		(0.34	)		(2.18	)		(2.52	)		—			(0.90	)		(0.90	)
Year ended 3-31-2015		36.57		(0.09	)		1.71			1.62			—			(0.51	)		(0.51	)
Year ended 3-31-2014		31.61		(0.08	)		5.22			5.14			(0.18	)		—			(0.18	)
Year ended 3-31-2013		29.85		(0.02	)		1.83			1.81			(0.05	)		—			(0.05	)
Class E Shares(9)
Six-month period ended 9-30-2017 (unaudited)		42.94		0.16			4.21			4.37			—			—			—
Year ended 3-31-2017		39.38		0.07			3.49			3.56			—			—			—
Year ended 3-31-2016		42.83		0.02			(2.50	)		(2.48	)		(0.07	)		(0.90	)		(0.97	)
Year ended 3-31-2015		41.19		0.31			1.94			2.25			(0.10	)		(0.51	)		(0.61	)
Year ended 3-31-2014		35.53		0.32			5.89			6.21			(0.55	)		—			(0.55	)
Year ended 3-31-2013		33.52		0.35			2.07			2.42			(0.41	)		—			(0.41	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		43.44		0.20			4.25			4.45			—			—			—
Year ended 3-31-2017		39.81		0.04			3.59			3.63			—			—			—
Year ended 3-31-2016		43.24		0.05			(2.49	)		(2.44	)		(0.09	)		(0.90	)		(0.99	)
Year ended 3-31-2015		41.57		0.35			1.96			2.31			(0.13	)		(0.51	)		(0.64	)
Year ended 3-31-2014		35.85		0.40			5.92			6.32			(0.60	)		—			(0.60	)
Year ended 3-31-2013		33.84		0.33			2.16			2.49			(0.48	)		—			(0.48	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		43.64		0.16			4.34			4.50			—			—			—
Year ended 3-31-2017		39.92		0.10			3.62			3.72			—			—			—
Year ended 3-31-2016		43.32		0.13			(2.52	)		(2.39	)		(0.11	)		(0.90	)		(1.01	)
Year ended 3-31-2015(5)		42.56		0.15			1.22			1.37			(0.10	)		(0.51	)		(0.61	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		42.41		0.05			4.15			4.20			—			—			—
Year ended 3-31-2017		39.08		(0.14	)		3.47			3.33			—			—			—
Year ended 3-31-2016		42.64		(0.20	)		(2.46	)		(2.66	)		—			(0.90	)		(0.90	)
Year ended 3-31-2015		41.11		0.01			2.03			2.04			—			(0.51	)		(0.51	)
Year ended 3-31-2014		35.48		0.13			5.88			6.01			(0.38	)		—			(0.38	)
Year ended 3-31-2013(7)		34.77		0.01			0.70			0.71			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		42.86		0.15			4.17			4.32			—			—			—
Year ended 3-31-2017		39.37		0.00	*		3.49			3.49			—			—			—
Year ended 3-31-2016		42.86		(0.05	)		(2.49	)		(2.54	)		(0.05	)		(0.90	)		(0.95	)
Year ended 3-31-2015		41.23		0.24			1.96			2.20			(0.06	)		(0.51	)		(0.57	)
Year ended 3-31-2014		35.57		0.30			5.87			6.17			(0.51	)		—			(0.51	)
Year ended 3-31-2013		33.54		0.27			2.10			2.37			(0.34	)		—			(0.34	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

(3) Annualized.

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

156 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			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	46.96		10.06	%	$	119			1.42	%(3)		0.51	%(3)		35	%
Year ended 3-31-2017		42.67		8.77			115			1.48			0.11			66
Year ended 3-31-2016		39.23		-6.12			375			1.47			-0.22			51
Year ended 3-31-2015		42.75		5.26			409			1.45			0.47			61
Year ended 3-31-2014		41.15		17.26			340			1.49			0.50			46
Year ended 3-31-2013		35.50		7.04			198			1.48			0.80			40
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		40.10		9.50			2			2.48	(3)		-0.50	(3)		35
Year ended 3-31-2017		36.62		7.48			2			2.67			-1.30			66
Year ended 3-31-2016		34.07		-7.12			3			2.52			-1.22			51
Year ended 3-31-2015		37.61		4.25			4			2.43			-0.40			61
Year ended 3-31-2014		36.59		16.13			5			2.47			-0.46			46
Year ended 3-31-2013		31.63		5.95			4			2.47			-0.16			40
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		40.55		9.66			25			2.16	(3)		-0.21	(3)		35
Year ended 3-31-2017		36.98		7.94			25			2.21			-0.84			66
Year ended 3-31-2016		34.26		-6.79			25			2.22			-0.96			51
Year ended 3-31-2015		37.68		4.51			26			2.21			-0.25			61
Year ended 3-31-2014		36.57		16.30			28			2.31			-0.23			46
Year ended 3-31-2013		31.61		6.03			24			2.39			-0.07			40
Class E Shares(9)
Six-month period ended 9-30-2017 (unaudited)		47.31		10.20			—	*		1.21	(3)		0.72	(3)		35
Year ended 3-31-2017		42.94		9.04			—	*		1.21			0.17			66
Year ended 3-31-2016		39.38		-5.87			—	*		1.20			0.05			51
Year ended 3-31-2015		42.83		5.55			—	*		1.21			0.74			61
Year ended 3-31-2014		41.19		17.58			—	*		1.22			0.84			46
Year ended 3-31-2013		35.53		7.27			—	*		1.25			1.04			40
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		47.89		10.24			253			1.12	(3)		0.85	(3)		35
Year ended 3-31-2017		43.44		9.12			270			1.11			0.10			66
Year ended 3-31-2016		39.81		-5.73			78			1.09			0.13			51
Year ended 3-31-2015		43.24		5.66			77			1.09			0.84			61
Year ended 3-31-2014		41.57		17.73			66			1.11			1.02			46
Year ended 3-31-2013		35.85		7.38			48			1.13			0.96			40
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		48.14		10.31			29			0.95	(3)		0.67	(3)		35
Year ended 3-31-2017		43.64		9.32			7			0.95			0.24			66
Year ended 3-31-2016		39.92		-5.61			3			0.94			0.31			51
Year ended 3-31-2015(5)		43.32		3.31			3			0.95	(3)		0.55	(3)		61	(6)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		46.61		9.90			2			1.70	(3)		0.22	(3)		35
Year ended 3-31-2017		42.41		8.52			2			1.69			-0.35			66
Year ended 3-31-2016		39.08		-6.32			2			1.68			-0.50			51
Year ended 3-31-2015		42.64		5.03			1			1.69			0.02			61
Year ended 3-31-2014		41.11		17.01			—	*		1.70			0.33			46
Year ended 3-31-2013(7)		35.48		2.04			—	*		1.70	(3)		0.15	(3)		40	(8)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		47.18		10.08			10			1.36	(3)		0.66	(3)		35
Year ended 3-31-2017		42.86		8.86			14			1.36			0.00			66
Year ended 3-31-2016		39.37		-6.00			17			1.36			-0.13			51
Year ended 3-31-2015		42.86		5.40			11			1.35			0.57			61
Year ended 3-31-2014		41.23		17.38			11			1.38			0.79			46
Year ended 3-31-2013		35.57		7.14			13			1.39			0.81			40

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

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

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

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

(9) Class is closed to investment.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 157

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL INCOME ALLOCATION FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	14.93	$	0.40	$	0.29		$	0.69		$	(0.34	)	$	—	$	(0.34	)
Year ended 3-31-2017		13.96		0.64		0.88			1.52			(0.55	)		—		(0.55	)
Year ended 3-31-2016		15.42		0.59		(1.46	)		(0.87	)		(0.59	)		—		(0.59	)
Year ended 3-31-2015		15.58		0.62		(0.18	)		0.44			(0.60	)		—		(0.60	)
Year ended 3-31-2014		14.79		0.68		0.70			1.38			(0.59	)		—		(0.59	)
Year ended 3-31-2013		14.52		0.62		0.33			0.95			(0.68	)		—		(0.68	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		14.66		0.32		0.29			0.61			(0.28	)		—		(0.28	)
Year ended 3-31-2017		13.72		0.45		0.92			1.37			(0.43	)		—		(0.43	)
Year ended 3-31-2016		15.15		0.46		(1.43	)		(0.97	)		(0.46	)		—		(0.46	)
Year ended 3-31-2015		15.32		0.48		(0.18	)		0.30			(0.47	)		—		(0.47	)
Year ended 3-31-2014		14.55		0.52		0.70			1.22			(0.45	)		—		(0.45	)
Year ended 3-31-2013		14.29		0.48		0.32			0.80			(0.54	)		—		(0.54	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		14.75		0.34		0.29			0.63			(0.29	)		—		(0.29	)
Year ended 3-31-2017		13.80		0.48		0.94			1.42			(0.47	)		—		(0.47	)
Year ended 3-31-2016		15.24		0.49		(1.43	)		(0.94	)		(0.50	)		—		(0.50	)
Year ended 3-31-2015		15.41		0.51		(0.18	)		0.33			(0.50	)		—		(0.50	)
Year ended 3-31-2014		14.64		0.57		0.70			1.27			(0.50	)		—		(0.50	)
Year ended 3-31-2013		14.38		0.52		0.32			0.84			(0.58	)		—		(0.58	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		14.94		0.39		0.29			0.68			(0.34	)		—		(0.34	)
Year ended 3-31-2017		13.97		0.55		0.97			1.52			(0.55	)		—		(0.55	)
Year ended 3-31-2016		15.42		0.58		(1.45	)		(0.87	)		(0.58	)		—		(0.58	)
Year ended 3-31-2015		15.58		0.62		(0.19	)		0.43			(0.59	)		—		(0.59	)
Year ended 3-31-2014		14.79		0.68		0.70			1.38			(0.59	)		—		(0.59	)
Year ended 3-31-2013		14.52		0.62		0.33			0.95			(0.68	)		—		(0.68	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		15.06		0.42		0.30			0.72			(0.37	)		—		(0.37	)
Year ended 3-31-2017		14.08		0.57		1.01			1.58			(0.60	)		—		(0.60	)
Year ended 3-31-2016		15.54		0.64		(1.46	)		(0.82	)		(0.64	)		—		(0.64	)
Year ended 3-31-2015		15.70		0.67		(0.17	)		0.50			(0.66	)		—		(0.66	)
Year ended 3-31-2014		14.90		0.74		0.71			1.45			(0.65	)		—		(0.65	)
Year ended 3-31-2013		14.62		0.70		0.32			1.02			(0.74	)		—		(0.74	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		15.07		0.43		0.31			0.74			(0.38	)		—		(0.38	)
Year ended 3-31-2017		14.09		0.65		0.95			1.60			(0.62	)		—		(0.62	)
Year ended 3-31-2016		15.55		0.67		(1.47	)		(0.80	)		(0.66	)		—		(0.66	)
Year ended 3-31-2015(6)		15.95		0.45		(0.40	)		0.05			(0.45	)		—		(0.45	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)(4)		14.93		0.37		0.29			0.66			(0.32	)		—		(0.32	)
Year ended 3-31-2017		13.96		0.52		0.97			1.49			(0.52	)		—		(0.52	)
Year ended 3-31-2016		15.41		0.56		(1.46	)		(0.90	)		(0.55	)		—		(0.55	)
Year ended 3-31-2015		15.57		0.59		(0.18	)		0.41			(0.57	)		—		(0.57	)
Year ended 3-31-2014		14.79		0.64		0.70			1.34			(0.56	)		—		(0.56	)
Year ended 3-31-2013(8)		14.37		0.15		0.32			0.47			(0.05	)		—		(0.05	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		15.00		0.40		0.30			0.70			(0.35	)		—		(0.35	)
Year ended 3-31-2017		14.02		0.58		0.97			1.55			(0.57	)		—		(0.57	)
Year ended 3-31-2016		15.48		0.63		(1.49	)		(0.86	)		(0.60	)		—		(0.60	)
Year ended 3-31-2015		15.64		0.67		(0.21	)		0.46			(0.62	)		—		(0.62	)
Year ended 3-31-2014		14.85		0.71		0.70			1.41			(0.62	)		—		(0.62	)
Year ended 3-31-2013		14.57		0.62		0.36			0.98			(0.70	)		—		(0.70	)

* 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.

158 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 9-30-2017 (unaudited)	$	15.28		4.65	%	$	203			1.25	%(4)		5.19	%(4)		—	%		—	%		25	%
Year ended 3-31-2017		14.93		11.19			212			1.28			4.50			—			—			70
Year ended 3-31-2016		13.96		-5.74			623			1.28			4.09			—			—			53
Year ended 3-31-2015		15.42		2.87			653			1.29			4.00			—			—			69
Year ended 3-31-2014		15.58		9.60			494			1.35			4.52			1.35			4.52			92
Year ended 3-31-2013		14.79		6.84			308			1.35			4.38			1.51			4.22			109
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		14.99		4.16			3			2.13	(4)		4.34	(4)		—			—			25
Year ended 3-31-2017		14.66		10.23			4			2.15			3.17			—			—			70
Year ended 3-31-2016		13.72		-6.51			4			2.17			3.24			—			—			53
Year ended 3-31-2015		15.15		1.95			5			2.18			3.12			—			—			69
Year ended 3-31-2014		15.32		8.53			6			2.27			3.54			—			—			92
Year ended 3-31-2013		14.55		5.90			7			2.31			3.48			2.54			3.25			109
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		15.09		4.31			43			1.89	(4)		4.56	(4)		—			—			25
Year ended 3-31-2017		14.75		10.50			48			1.90			3.41			—			—			70
Year ended 3-31-2016		13.80		-6.26			52			1.90			3.45			—			—			53
Year ended 3-31-2015		15.24		2.18			50			1.91			3.34			—			—			69
Year ended 3-31-2014		15.41		8.86			28			1.99			3.82			1.99			3.82			92
Year ended 3-31-2013		14.64		6.13			25			2.02			3.70			2.12			3.60			109
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		15.28		4.56			3			1.32	(4)		5.10	(4)		1.47	(4)		4.95	(4)		25
Year ended 3-31-2017		14.94		11.13			3			1.33			3.86			1.56			3.63			70
Year ended 3-31-2016		13.97		-5.73			3			1.33			4.03			1.60			3.76			53
Year ended 3-31-2015		15.42		2.82			3			1.33			3.97			1.61			3.69			69
Year ended 3-31-2014		15.58		9.56			3			1.33			4.51			1.70			4.14			92
Year ended 3-31-2013		14.79		6.94			2			1.33			4.42			2.03			3.72			109
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		15.41		4.79			406			0.94	(4)		5.51	(4)		—			—			25
Year ended 3-31-2017		15.06		11.54			454			0.94			3.90			—			—			70
Year ended 3-31-2016		14.08		-5.35			62			0.92			4.39			—			—			53
Year ended 3-31-2015		15.54		3.22			48			0.92			4.28			—			—			69
Year ended 3-31-2014		15.70		10.07			39			0.93			4.90			0.94			4.89			92
Year ended 3-31-2013		14.90		7.33			30			0.91			4.98			1.03			4.86			109
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		15.43		4.87			32			0.78	(4)		5.45	(4)		—			—			25
Year ended 3-31-2017		15.07		11.70			2			0.78			4.48			—			—			70
Year ended 3-31-2016		14.09		-5.21			2			0.78			4.58			—			—			53
Year ended 3-31-2015(6)		15.55		0.36			2			0.78	(4)		4.40	(4)		—			—			69	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		15.27		4.45			—	*		1.53	(4)		4.90	(4)		—			—			25
Year ended 3-31-2017		14.93		10.92			—	*		1.52			3.62			—			—			70
Year ended 3-31-2016		13.96		-5.90			—	*		1.52			3.87			—			—			53
Year ended 3-31-2015		15.41		2.64			—	*		1.51			3.80			—			—			69
Year ended 3-31-2014		15.57		9.32			—	*		1.55			4.28			—			—			92
Year ended 3-31-2013(8)		14.79		3.30			—	*		1.52	(4)		3.73	(4)		1.53	(4)		3.72	(4)		109	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		15.35		4.69			3			1.17	(4)		5.19	(4)		1.17	(4)		5.19	(4)		25
Year ended 3-31-2017		15.00		11.33			3			1.17			4.02			1.18			4.01			70
Year ended 3-31-2016		14.02		-5.61			2			1.17			4.28			1.18			4.27			53
Year ended 3-31-2015		15.48		2.97			3			1.17			4.29			1.18			4.28			69
Year ended 3-31-2014		15.64		9.77			7			1.17			4.68			1.19			4.66			92
Year ended 3-31-2013		14.85		7.08			5			1.17			4.40			1.29			4.28			109

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

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

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 159

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GOVERNMENT MONEY MARKET FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)			Net Realized and Unrealized Gain on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	1.00	$	0.00	*	$	0.00		$	0.00	*	$	—	*	$	—		$	—	*
Year ended 3-31-2017		1.00		0.00	*		0.00	*		0.00	*		—	*		—	*		—	*
Year ended 3-31-2016		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2015		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2014		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2013		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		1.00		0.00	*		0.00			0.00	*		—	*		—			—	*
Year ended 3-31-2017		1.00		0.00	*		0.00	*		0.00	*		—	*		—	*		—	*
Year ended 3-31-2016		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2015		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2014		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2013		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		1.00		0.00	*		0.00			0.00	*		—	*		—			—	*
Year ended 3-31-2017		1.00		0.00	*		0.00	*		0.00	*		—	*		—	*		—	*
Year ended 3-31-2016		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2015		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2014		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2013		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		1.00		0.00	*		0.00			0.00	*		—	*		—			—	*
Year ended 3-31-2017		1.00		0.00	*		0.00	*		0.00	*		—	*		—	*		—	*
Year ended 3-31-2016		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2015		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2014		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2013		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		1.00		0.00	*		0.00			0.00	*		—	*		—			—	*

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

(6) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017..

160 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	1.00		0.11	%	$	131		0.80	%(4)		0.21	%(4)		—	%		—	%
Year ended 3-31-2017		1.00		0.03			184		0.60			0.03			0.63			0.00
Year ended 3-31-2016		1.00		0.02			167		0.30			0.02			0.61			-0.29
Year ended 3-31-2015		1.00		0.02			119		0.17			0.02			0.68			-0.49
Year ended 3-31-2014		1.00		0.02			137		0.20			0.02			0.69			-0.47
Year ended 3-31-2013		1.00		0.02			128		0.31			0.02			0.67			-0.34
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		1.00		0.01			4		0.99	(4)		0.01	(4)		1.75	(4)		-0.75	(4)
Year ended 3-31-2017		1.00		0.01			5		0.61			0.02			1.71			-1.08
Year ended 3-31-2016		1.00		0.02			6		0.30			0.02			1.65			-1.33
Year ended 3-31-2015		1.00		0.02			4		0.17			0.02			1.73			-1.54
Year ended 3-31-2014		1.00		0.02			7		0.20			0.02			1.74			-1.52
Year ended 3-31-2013		1.00		0.02			8		0.31			0.02			1.70			-1.37
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		1.00		0.01			22		1.00	(4)		0.01	(4)		1.73	(4)		-0.72	(4)
Year ended 3-31-2017		1.00		0.01			29		0.61			0.02			1.61			-0.98
Year ended 3-31-2016		1.00		0.02			44		0.30			0.02			1.57			-1.25
Year ended 3-31-2015		1.00		0.02			32		0.17			0.02			1.62			-1.43
Year ended 3-31-2014		1.00		0.02			34		0.20			0.02			1.63			-1.41
Year ended 3-31-2013		1.00		0.02			35		0.31			0.02			1.65			-1.32
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		1.00		0.10			6		0.82	(4)		0.19	(4)		—			—
Year ended 3-31-2017		1.00		0.01			6		0.61			0.02			0.70			-0.07
Year ended 3-31-2016		1.00		0.02			7		0.29			0.02			0.68			-0.37
Year ended 3-31-2015		1.00		0.02			6		0.17			0.02			0.74			-0.55
Year ended 3-31-2014		1.00		0.02			6		0.20			0.02			0.73			-0.51
Year ended 3-31-2013		1.00		0.02			5		0.31			0.02			0.75			-0.42
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		1.00		0.13			4		0.60	(4)		0.64	(4)		—			—

See Accompanying Notes to Financial Statements

2017 SEMIANNUAL REPORT 161

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY HIGH INCOME FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	7.60	$	0.27	$	0.02		$	0.29		$	(0.27	)	$	—		$	(0.27	)
Year ended 3-31-2017		6.91		0.55		0.68			1.23			(0.54	)		—			(0.54	)
Year ended 3-31-2016		8.09		0.58		(1.19	)		(0.61	)		(0.57	)		—			(0.57	)
Year ended 3-31-2015		8.75		0.57		(0.52	)		0.05			(0.57	)		(0.14	)		(0.71	)
Year ended 3-31-2014		8.72		0.58		0.18			0.76			(0.60	)		(0.13	)		(0.73	)
Year ended 3-31-2013		8.30		0.63		0.52			1.15			(0.63	)		(0.10	)		(0.73	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		7.60		0.24		0.02			0.26			(0.24	)		—			(0.24	)
Year ended 3-31-2017		6.91		0.49		0.68			1.17			(0.48	)		—			(0.48	)
Year ended 3-31-2016		8.09		0.53		(1.19	)		(0.66	)		(0.52	)		—			(0.52	)
Year ended 3-31-2015		8.75		0.51		(0.52	)		(0.01	)		(0.51	)		(0.14	)		(0.65	)
Year ended 3-31-2014		8.72		0.52		0.17			0.69			(0.53	)		(0.13	)		(0.66	)
Year ended 3-31-2013		8.30		0.57		0.52			1.09			(0.57	)		(0.10	)		(0.67	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		7.60		0.25		0.02			0.27			(0.25	)		—			(0.25	)
Year ended 3-31-2017		6.91		0.50		0.68			1.18			(0.49	)		—			(0.49	)
Year ended 3-31-2016		8.09		0.53		(1.19	)		(0.66	)		(0.52	)		—			(0.52	)
Year ended 3-31-2015		8.75		0.51		(0.52	)		(0.01	)		(0.51	)		(0.14	)		(0.65	)
Year ended 3-31-2014		8.72		0.52		0.18			0.70			(0.54	)		(0.13	)		(0.67	)
Year ended 3-31-2013		8.30		0.57		0.52			1.09			(0.57	)		(0.10	)		(0.67	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		7.60		0.26		0.02			0.28			(0.26	)		—			(0.26	)
Year ended 3-31-2017		6.91		0.53		0.68			1.21			(0.52	)		—			(0.52	)
Year ended 3-31-2016		8.09		0.56		(1.19	)		(0.63	)		(0.55	)		—			(0.55	)
Year ended 3-31-2015		8.75		0.54		(0.51	)		0.03			(0.55	)		(0.14	)		(0.69	)
Year ended 3-31-2014		8.72		0.55		0.17			0.72			(0.56	)		(0.13	)		(0.69	)
Year ended 3-31-2013		8.30		0.59		0.52			1.11			(0.59	)		(0.10	)		(0.69	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		7.60		0.28		0.02			0.30			(0.28	)		—			(0.28	)
Year ended 3-31-2017		6.91		0.56		0.69			1.25			(0.56	)		—			(0.56	)
Year ended 3-31-2016		8.09		0.60		(1.19	)		(0.59	)		(0.59	)		—			(0.59	)
Year ended 3-31-2015		8.75		0.59		(0.52	)		0.07			(0.59	)		(0.14	)		(0.73	)
Year ended 3-31-2014		8.72		0.60		0.18			0.78			(0.62	)		(0.13	)		(0.75	)
Year ended 3-31-2013		8.30		0.65		0.52			1.17			(0.65	)		(0.10	)		(0.75	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		7.60		0.29		0.02			0.31			(0.29	)		—			(0.29	)
Year ended 3-31-2017		6.91		0.59		0.67			1.26			(0.57	)		—			(0.57	)
Year ended 3-31-2016		8.09		0.60		(1.18	)		(0.58	)		(0.60	)		—			(0.60	)
Year ended 3-31-2015(6)		8.63		0.40		(0.40	)		0.00	*		(0.40	)		(0.14	)		(0.54	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		7.60		0.26		0.02			0.28			(0.26	)		—			(0.26	)
Year ended 3-31-2017		6.91		0.52		0.68			1.20			(0.51	)		—			(0.51	)
Year ended 3-31-2016		8.09		0.55		(1.19	)		(0.64	)		(0.54	)		—			(0.54	)
Year ended 3-31-2015		8.75		0.54		(0.52	)		0.02			(0.54	)		(0.14	)		(0.68	)
Year ended 3-31-2014		8.72		0.52		0.21			0.73			(0.57	)		(0.13	)		(0.70	)
Year ended 3-31-2013(8)		8.54		0.16		0.17			0.33			(0.15	)		—			(0.15	)
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(10)		7.62		0.12		0.00	*		0.12			(0.12	)		—			(0.12	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		7.60		0.27		0.02			0.29			(0.27	)		—			(0.27	)
Year ended 3-31-2017		6.91		0.55		0.68			1.23			(0.54	)		—			(0.54	)
Year ended 3-31-2016		8.09		0.58		(1.19	)		(0.61	)		(0.57	)		—			(0.57	)
Year ended 3-31-2015		8.75		0.57		(0.52	)		0.05			(0.57	)		(0.14	)		(0.71	)
Year ended 3-31-2014		8.72		0.58		0.18			0.76			(0.60	)		(0.13	)		(0.73	)
Year ended 3-31-2013		8.30		0.63		0.52			1.15			(0.63	)		(0.10	)		(0.73	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

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

162 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	7.62		3.90	%	$	1,221			0.95	%(4)		7.15	%(4)		—	%		—	%		20	%
Year ended 3-31-2017		7.60		18.34			1,250			0.97			7.51			—			—			35
Year ended 3-31-2016		6.91		-7.75			1,865			0.96			7.71			—			—			29
Year ended 3-31-2015		8.09		0.62			2,920			0.94			6.70			—			—			44
Year ended 3-31-2014		8.75		9.09			4,151			0.93			6.68			—			—			75
Year ended 3-31-2013		8.72		14.50			3,080			0.93			7.42			—			—			68
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		7.62		3.50			70			1.72	(4)		6.39	(4)		—			—			20
Year ended 3-31-2017		7.60		17.46			79			1.72			6.72			—			—			35
Year ended 3-31-2016		6.91		-8.43			84			1.70			6.98			—			—			29
Year ended 3-31-2015		8.09		-0.13			133			1.67			5.98			—			—			44
Year ended 3-31-2014		8.75		8.28			165			1.68			5.96			—			—			75
Year ended 3-31-2013		8.72		13.64			152			1.69			6.65			—			—			68
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		7.62		3.53			903			1.67	(4)		6.43	(4)		—			—			20
Year ended 3-31-2017		7.60		17.51			970			1.67			6.77			—			—			35
Year ended 3-31-2016		6.91		-8.40			1,025			1.66			7.02			—			—			29
Year ended 3-31-2015		8.09		-0.07			1,618			1.64			6.02			—			—			44
Year ended 3-31-2014		8.75		8.32			1,919			1.64			5.98			—			—			75
Year ended 3-31-2013		8.72		13.71			1,501			1.64			6.70			—			—			68
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		7.62		3.77			10			1.19	(4)(12)		6.90	(4)		1.26	(4)		6.83	(4)		20
Year ended 3-31-2017		7.60		18.08			10			1.19			7.22			1.28			7.13			35
Year ended 3-31-2016		6.91		-8.01			8			1.23			7.47			1.30			7.40			29
Year ended 3-31-2015		8.09		0.30			10			1.26			6.42			—			—			44
Year ended 3-31-2014		8.75		8.69			10			1.27			6.34			—			—			75
Year ended 3-31-2013		8.72		13.96			8			1.36			6.99			1.38			6.97			68
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		7.62		4.02			1,708			0.72	(4)		7.37	(4)		—			—			20
Year ended 3-31-2017		7.60		18.64			1,737			0.71			7.69			—			—			35
Year ended 3-31-2016		6.91		-7.52			1,266			0.70			7.94			—			—			29
Year ended 3-31-2015		8.09		0.88			2,523			0.69			6.91			—			—			44
Year ended 3-31-2014		8.75		9.36			4,075			0.69			6.90			—			—			75
Year ended 3-31-2013		8.72		14.77			2,513			0.70			7.64			—			—			68
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		7.62		4.11			66			0.57	(4)		7.50	(4)		—			—			20
Year ended 3-31-2017		7.60		18.83			34			0.56			8.04			—			—			35
Year ended 3-31-2016		6.91		-7.35			55			0.56			8.36			—			—			29
Year ended 3-31-2015(6)		8.09		0.13			13			0.54	(4)		7.47	(4)		—			—			44	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		7.62		3.71			68			1.30	(4)		6.79	(4)		—			—			20
Year ended 3-31-2017		7.60		17.94			70			1.31			7.05			—			—			35
Year ended 3-31-2016		6.91		-8.07			62			1.30			7.44			—			—			29
Year ended 3-31-2015		8.09		0.31			58			1.29			6.45			—			—			44
Year ended 3-31-2014		8.75		8.71			30			1.28			6.00			—			—			75
Year ended 3-31-2013(8)		8.72		3.94			—	*		1.27	(4)		6.61	(4)		—			—			68	(9)
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(10)		7.62		1.64			—	*		0.81	(4)		6.61	(4)		—			—			20	(11)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		7.62		3.91			359			0.95	(4)		7.15	(4)		0.97	(4)		7.13	(4)		20
Year ended 3-31-2017		7.60		18.33			396			0.96			7.46			—			—			35
Year ended 3-31-2016		6.91		-7.76			406			0.95			7.69			0.95			7.69			29
Year ended 3-31-2015		8.09		0.64			740			0.94			6.69			0.95			6.68			44
Year ended 3-31-2014		8.75		9.09			1,129			0.93			6.67			0.94			6.66			75
Year ended 3-31-2013		8.72		14.50			835			0.93			7.41			0.95			7.39			68

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

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

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

(10) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(11) Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

(12) Annualized expense ratio based on the period excluding reorganization expenses was 1.11%.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 163

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY INTERNATIONAL CORE EQUITY FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	17.97	$	0.18	$	1.45		$	1.63		$	—		$	—		$	—
Year ended 3-31-2017		15.97		0.30		1.96			2.26			(0.26	)		—			(0.26	)
Year ended 3-31-2016		17.88		0.20		(1.97	)		(1.77	)		(0.14	)		—			(0.14	)
Year ended 3-31-2015		19.04		0.19		0.67			0.86			(0.23	)		(1.79	)		(2.02	)
Year ended 3-31-2014		15.98		0.18		3.24			3.42			(0.35	)		(0.01	)		(0.36	)
Year ended 3-31-2013		15.26		0.21		0.73			0.94			(0.22	)		—			(0.22	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		15.98		0.09		1.29			1.38			—			—			—
Year ended 3-31-2017		14.24		0.07		1.80			1.87			(0.13	)		—			(0.13	)
Year ended 3-31-2016		15.97		0.05		(1.76	)		(1.71	)		(0.02	)		—			(0.02	)
Year ended 3-31-2015		17.23		0.03		0.59			0.62			(0.09	)		(1.79	)		(1.88	)
Year ended 3-31-2014		14.49		0.04		2.93			2.97			(0.22	)		(0.01	)		(0.23	)
Year ended 3-31-2013		13.86		0.07		0.66			0.73			(0.10	)		—			(0.10	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		16.02		0.10		1.30			1.40			—			—			—
Year ended 3-31-2017		14.27		0.11		1.81			1.92			(0.17	)		—			(0.17	)
Year ended 3-31-2016		16.00		0.06		(1.75	)		(1.69	)		(0.04	)		—			(0.04	)
Year ended 3-31-2015		17.25		0.05		0.61			0.66			(0.12	)		(1.79	)		(1.91	)
Year ended 3-31-2014		14.51		0.07		2.93			3.00			(0.25	)		(0.01	)		(0.26	)
Year ended 3-31-2013		13.88		0.11		0.65			0.76			(0.13	)		—			(0.13	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		18.09		0.18		1.46			1.64			—			—			—
Year ended 3-31-2017		16.08		0.22		2.04			2.26			(0.25	)		—			(0.25	)
Year ended 3-31-2016		17.99		0.17		(1.97	)		(1.80	)		(0.11	)		—			(0.11	)
Year ended 3-31-2015		19.14		0.16		0.68			0.84			(0.20	)		(1.79	)		(1.99	)
Year ended 3-31-2014		16.07		0.16		3.25			3.41			(0.33	)		(0.01	)		(0.34	)
Year ended 3-31-2013		15.33		0.20		0.75			0.95			(0.21	)		—			(0.21	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		18.07		0.21		1.47			1.68			—			—			—
Year ended 3-31-2017		16.07		0.26		2.06			2.32			(0.32	)		—			(0.32	)
Year ended 3-31-2016		17.99		0.24		(1.97	)		(1.73	)		(0.19	)		—			(0.19	)
Year ended 3-31-2015		19.15		0.25		0.68			0.93			(0.30	)		(1.79	)		(2.09	)
Year ended 3-31-2014		16.07		0.25		3.25			3.50			(0.41	)		(0.01	)		(0.42	)
Year ended 3-31-2013		15.33		0.27		0.75			1.02			(0.28	)		—			(0.28	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		18.13		0.17		1.53			1.70			—			—			—
Year ended 3-31-2017		16.11		0.29		2.07			2.36			(0.34	)		—			(0.34	)
Year ended 3-31-2016		18.04		0.23		(1.94	)		(1.71	)		(0.22	)		—			(0.22	)
Year ended 3-31-2015(6)		20.09		0.13		(0.12	)		0.01			(0.27	)		(1.79	)		(2.06	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		17.96		0.13		1.48			1.61			—			—			—
Year ended 3-31-2017		15.97		0.17		2.04			2.21			(0.22	)		—			(0.22	)
Year ended 3-31-2016		17.87		0.13		(1.94	)		(1.81	)		(0.09	)		—			(0.09	)
Year ended 3-31-2015		19.03		0.10		0.71			0.81			(0.18	)		(1.79	)		(1.97	)
Year ended 3-31-2014		15.98		0.11		3.26			3.37			(0.31	)		(0.01	)		(0.32	)
Year ended 3-31-2013(8)		15.40		0.04		0.54			0.58			—			—			—
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(10)		18.96		0.03		0.62			0.65			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		18.09		0.18		1.47			1.65			—			—			—
Year ended 3-31-2017		16.08		0.26		2.02			2.28			(0.27	)		—			(0.27	)
Year ended 3-31-2016		18.00		0.21		(1.98	)		(1.77	)		(0.15	)		—			(0.15	)
Year ended 3-31-2015		19.16		0.18		0.70			0.88			(0.25	)		(1.79	)		(2.04	)
Year ended 3-31-2014		16.08		0.21		3.25			3.46			(0.37	)		(0.01	)		(0.38	)
Year ended 3-31-2013		15.35		0.24		0.73			0.97			(0.24	)		—			(0.24	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

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

    .

164 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	19.60		9.13	%	$	658			1.26	%(4)		1.87	%(4)		—	%		—	%		38	%
Year ended 3-31-2017		17.97		14.31			564			1.29			1.78			—			—			80
Year ended 3-31-2016		15.97		-9.95			1,532			1.31			1.15			—			—			62
Year ended 3-31-2015		17.88		4.98			1,383			1.35			0.99			—			—			87
Year ended 3-31-2014		19.04		21.42			1,028			1.40			1.01			—			—			87
Year ended 3-31-2013		15.98		6.30			694			1.46			1.43			—			—			81
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		17.36		8.64			9			2.15	(4)		1.12	(4)		—			—			38
Year ended 3-31-2017		15.98		13.20			9			2.22			0.45			—			—			80
Year ended 3-31-2016		14.24		-10.70			10			2.20			0.31			—			—			62
Year ended 3-31-2015		15.97		4.02			13			2.20			0.17			—			—			87
Year ended 3-31-2014		17.23		20.47			13			2.22			0.26			—			—			87
Year ended 3-31-2013		14.49		5.37			12			2.35			0.56			—			—			81
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		17.42		8.74			244			1.93	(4)		1.24	(4)		—			—			38
Year ended 3-31-2017		16.02		13.51			220			1.97			0.72			—			—			80
Year ended 3-31-2016		14.27		-10.54			253			1.98			0.40			—			—			62
Year ended 3-31-2015		16.00		4.25			168			2.02			0.32			—			—			87
Year ended 3-31-2014		17.25		20.64			117			2.07			0.40			—			—			87
Year ended 3-31-2013		14.51		5.61			98			2.10			0.81			—			—			81
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		19.73		9.07			7			1.30	(4)		1.87	(4)		1.57	(4)		1.60	(4)		38
Year ended 3-31-2017		18.09		14.20			6			1.31			1.31			1.61			1.01			80
Year ended 3-31-2016		16.08		-10.05			5			1.45			1.01			1.69			0.77			62
Year ended 3-31-2015		17.99		4.82			5			1.53			0.84			1.74			0.63			87
Year ended 3-31-2014		19.14		21.32			4			1.53			0.90			1.85			0.58			87
Year ended 3-31-2013		16.07		6.27			3			1.52			1.36			2.05			0.83			81
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		19.75		9.30			3,889			0.95	(4)		2.21	(4)		—			—			38
Year ended 3-31-2017		18.07		14.58			3,168			0.97			1.52			—			—			80
Year ended 3-31-2016		16.07		-9.63			1,885			0.98			1.44			—			—			62
Year ended 3-31-2015		17.99		5.32			1,347			1.02			1.30			—			—			87
Year ended 3-31-2014		19.15		21.93			802			1.04			1.39			—			—			87
Year ended 3-31-2013		16.07		6.75			572			1.05			1.80			—			—			81
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		19.83		9.38			1,354			0.80	(4)		1.80	(4)		—			—			38
Year ended 3-31-2017		18.13		14.83			484			0.82			1.72			—			—			80
Year ended 3-31-2016		16.11		-9.52			289			0.83			1.40			—			—			62
Year ended 3-31-2015(6)		18.04		0.48			21			0.86	(4)		1.10	(4)		—			—			87	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		19.57		8.96			105			1.54	(4)		1.34	(4)		—			—			38
Year ended 3-31-2017		17.96		13.95			56			1.56			1.00			—			—			80
Year ended 3-31-2016		15.97		-10.15			36			1.58			0.80			—			—			62
Year ended 3-31-2015		17.87		4.70			19			1.61			0.54			—			—			87
Year ended 3-31-2014		19.03		21.19			5			1.64			0.61			—			—			87
Year ended 3-31-2013(8)		15.98		3.77			—	*		1.62	(4)		0.96	(4)		—			—			81	(9)
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(10)		19.61		3.43			—	*		1.08	(4)		0.69	(4)		—			—			38	(11)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		19.74		9.12			513			1.19	(4)		1.92	(4)		—			—			38
Year ended 3-31-2017		18.09		14.34			416			1.24			1.56			—			—			80
Year ended 3-31-2016		16.08		-9.88			572			1.25			1.24			—			—			62
Year ended 3-31-2015		18.00		5.04			526			1.27			0.95			—			—			87
Year ended 3-31-2014		19.16		21.63			153			1.29			1.20			—			—			87
Year ended 3-31-2013		16.08		6.42			148			1.31			1.62			—			—			81

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

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

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

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

(10) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(11) Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 165

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LARGE CAP GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	19.17	$	(0.01	)	$	2.27		$	2.26		$	—		$	—		$	—
Year ended 3-31-2017		17.66		0.00	*		2.42			2.42			—			(0.91	)		(0.91	)
Year ended 3-31-2016		19.19		(0.03	)		(0.32	)		(0.35	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		17.59		(0.04	)		3.03			2.99			—			(1.39	)		(1.39	)
Year ended 3-31-2014		15.87		0.01			3.75			3.76			—			(2.04	)		(2.04	)
Year ended 3-31-2013		15.14		0.03			0.73			0.76			(0.03	)		—			(0.03	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		15.09		(0.08	)		1.79			1.71			—			—			—
Year ended 3-31-2017		14.22		(0.14	)		1.92			1.78			—			(0.91	)		(0.91	)
Year ended 3-31-2016		15.82		(0.16	)		(0.26	)		(0.42	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		14.84		(0.16	)		2.53			2.37			—			(1.39	)		(1.39	)
Year ended 3-31-2014		13.73		(0.12	)		3.21			3.09			—			(1.98	)		(1.98	)
Year ended 3-31-2013		13.20		(0.10	)		0.63			0.53			—			—			—
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		16.22		(0.07	)		1.92			1.85			—			—			—
Year ended 3-31-2017		15.19		(0.11	)		2.05			1.94			—			(0.91	)		(0.91	)
Year ended 3-31-2016		16.78		(0.14	)		(0.27	)		(0.41	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		15.64		(0.15	)		2.68			2.53			—			(1.39	)		(1.39	)
Year ended 3-31-2014		14.36		(0.11	)		3.37			3.26			—			(1.98	)		(1.98	)
Year ended 3-31-2013		13.78		(0.08	)		0.66			0.58			—			—			—
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		19.15		(0.01	)		2.26			2.25			—			—			—
Year ended 3-31-2017		17.64		0.00	*		2.42			2.42			—			(0.91	)		(0.91	)
Year ended 3-31-2016		19.17		(0.03	)		(0.32	)		(0.35	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		17.57		(0.04	)		3.03			2.99			—			(1.39	)		(1.39	)
Year ended 3-31-2014		15.86		0.01			3.74			3.75			—			(2.04	)		(2.04	)
Year ended 3-31-2013		15.13		0.03			0.73			0.76			(0.03	)		—			(0.03	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		20.08		0.02			2.37			2.39			—			—			—
Year ended 3-31-2017		18.41		0.05			2.53			2.58			—			(0.91	)		(0.91	)
Year ended 3-31-2016		19.90		0.02			(0.33	)		(0.31	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		18.15		0.01			3.13			3.14			—			(1.39	)		(1.39	)
Year ended 3-31-2014		16.31		0.06			3.85			3.91			(0.03	)		(2.04	)		(2.07	)
Year ended 3-31-2013		15.54		0.07			0.76			0.83			(0.06	)		—			(0.06	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		20.18		0.04			2.38			2.42			—			—			—
Year ended 3-31-2017		18.47		0.07			2.55			2.62			—			(0.91	)		(0.91	)
Year ended 3-31-2016		19.93		0.05			(0.33	)		(0.28	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015(6)		18.91		0.02			2.39			2.41			—			(1.39	)		(1.39	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		18.54		(0.04	)		2.18			2.14			—			—			—
Year ended 3-31-2017		17.16		(0.06	)		2.35			2.29			—			(0.91	)		(0.91	)
Year ended 3-31-2016		18.74		(0.09	)		(0.31	)		(0.40	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		17.25		(0.09	)		2.97			2.88			—			(1.39	)		(1.39	)
Year ended 3-31-2014		15.62		(0.04	)		3.67			3.63			—			(2.00	)		(2.00	)
Year ended 3-31-2013		14.92		(0.02	)		0.72			0.70			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		19.63		0.00	*		2.32			2.32			—			—			—
Year ended 3-31-2017		18.04		0.00	*		2.50			2.50			—			(0.91	)		(0.91	)
Year ended 3-31-2016		19.57		(0.01	)		(0.34	)		(0.35	)		—			(1.18	)		(1.18	)
Year ended 3-31-2015		17.89		(0.02	)		3.09			3.07			—			(1.39	)		(1.39	)
Year ended 3-31-2014		16.11		0.03			3.80			3.83			(0.01	)		(2.04	)		(2.05	)
Year ended 3-31-2013		15.36		0.05			0.74			0.79			(0.04	)		—			(0.04	)

* 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.

    .

166 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	21.43		11.79	%	$	527		1.15	%(4)		-0.07	%(4)		1.16	%(4)		-0.08	%(4)		25	%
Year ended 3-31-2017		19.17		14.12			487		1.15			0.01			1.19			-0.03			43
Year ended 3-31-2016		17.66		-2.08			1,197		1.15			-0.15			1.16			-0.16			38
Year ended 3-31-2015		19.19		17.45			1,093		1.15			-0.20			1.17			-0.22			36
Year ended 3-31-2014		17.59		24.21			1,090		1.15			0.07			1.19			0.03			50
Year ended 3-31-2013		15.87		5.03			994		1.15			0.22			1.22			0.15			73
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		16.80		11.33			9		2.03	(4)		-0.94	(4)		—			—			25
Year ended 3-31-2017		15.09		13.01			10		2.08			-0.94			—			—			43
Year ended 3-31-2016		14.22		-2.98			11		2.07			-1.07			—			—			38
Year ended 3-31-2015		15.82		16.49			12		2.01			-1.06			—			—			36
Year ended 3-31-2014		14.84		23.08			11		2.06			-0.84			—			—			50
Year ended 3-31-2013		13.73		4.02			11		2.15			-0.78			2.18			-0.81			73
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		18.07		11.41			96		1.87	(4)		-0.79	(4)		—			—			25
Year ended 3-31-2017		16.22		13.24			97		1.87			-0.73			—			—			43
Year ended 3-31-2016		15.19		-2.74			107		1.86			-0.85			—			—			38
Year ended 3-31-2015		16.78		16.67			94		1.86			-0.92			—			—			36
Year ended 3-31-2014		15.64		23.17			78		1.90			-0.68			—			—			50
Year ended 3-31-2013		14.36		4.28			71		1.93			-0.57			—			—			73
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		21.40		11.80			15		1.15	(4)		-0.07	(4)		1.31	(4)		-0.23	(4)		25
Year ended 3-31-2017		19.15		14.14			13		1.15			-0.01			1.36			-0.22			43
Year ended 3-31-2016		17.64		-2.08			12		1.15			-0.14			1.35			-0.34			38
Year ended 3-31-2015		19.17		17.47			9		1.15			-0.21			1.39			-0.45			36
Year ended 3-31-2014		17.57		24.16			7		1.15			0.06			1.46			-0.25			50
Year ended 3-31-2013		15.86		5.03			6		1.15			0.21			1.59			-0.24			73
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		22.47		11.90			1,002		0.88	(4)		0.20	(4)		0.89	(4)		0.19	(4)		25
Year ended 3-31-2017		20.08		14.42			961		0.88			0.24			0.88			0.24			43
Year ended 3-31-2016		18.41		-1.79			272		0.88			0.11			—			—			38
Year ended 3-31-2015		19.90		17.75			318		0.88			0.04			—			—			36
Year ended 3-31-2014		18.15		24.52			118		0.88			0.34			0.88			0.34			50
Year ended 3-31-2013		16.31		5.36			142		0.88			0.45			0.89			0.45			73
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		22.60		12.04			161		0.72	(4)		0.37	(4)		—			—			25
Year ended 3-31-2017		20.18		14.59			1		0.72			0.39			—			—			43
Year ended 3-31-2016		18.47		-1.64			7		0.73			0.28			—			—			38
Year ended 3-31-2015(6)		19.93		13.18			6		0.72	(4)		0.17	(4)		—			—			36	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		20.68		11.54			21		1.47	(4)		-0.38	(4)		—			—			25
Year ended 3-31-2017		18.54		13.77			21		1.47			-0.33			—			—			43
Year ended 3-31-2016		17.16		-2.39			22		1.47			-0.48			—			—			38
Year ended 3-31-2015		18.74		17.16			26		1.47			-0.52			—			—			36
Year ended 3-31-2014		17.25		23.75			31		1.47			-0.26			—			—			50
Year ended 3-31-2013		15.62		4.69			28		1.48			-0.11			—			—			73
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		21.95		11.82			35		1.06	(4)		0.02	(4)		1.13	(4)		-0.05	(4)		25
Year ended 3-31-2017		19.63		14.27			35		1.06			0.02			1.12			-0.04			43
Year ended 3-31-2016		18.04		-2.03			125		1.06			-0.07			1.11			-0.12			38
Year ended 3-31-2015		19.57		17.62			132		1.06			-0.11			1.12			-0.17			36
Year ended 3-31-2014		17.89		24.30			131		1.06			0.16			1.13			0.09			50
Year ended 3-31-2013		16.11		5.09			126		1.06			0.31			1.13			0.23			73

(4) Annualized.

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 167

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LIMITED-TERM BOND FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	10.80	$	0.09	$	0.04		$	0.13		$	(0.09	)	$	—		$	(0.09	)
Year ended 3-31-2017		10.87		0.17		(0.06	)		0.11			(0.18	)		—			(0.18	)
Year ended 3-31-2016		10.92		0.15		(0.05	)		0.10			(0.15	)		—			(0.15	)
Year ended 3-31-2015		10.90		0.15		0.02			0.17			(0.15	)		—			(0.15	)
Year ended 3-31-2014		11.20		0.14		(0.23	)		(0.09	)		(0.15	)		(0.06	)		(0.21	)
Year ended 3-31-2013		11.16		0.17		0.08			0.25			(0.18	)		(0.03	)		(0.21	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		10.80		0.04		0.04			0.08			(0.04	)		—			(0.04	)
Year ended 3-31-2017		10.87		0.08		(0.07	)		0.01			(0.08	)		—			(0.08	)
Year ended 3-31-2016		10.92		0.06		(0.05	)		0.01			(0.06	)		—			(0.06	)
Year ended 3-31-2015		10.90		0.06		0.02			0.08			(0.06	)		—			(0.06	)
Year ended 3-31-2014		11.20		0.05		(0.23	)		(0.18	)		(0.06	)		(0.06	)		(0.12	)
Year ended 3-31-2013		11.16		0.07		0.09			0.16			(0.09	)		(0.03	)		(0.12	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.80		0.05		0.04			0.09			(0.05	)		—			(0.05	)
Year ended 3-31-2017		10.87		0.09		(0.06	)		0.03			(0.10	)		—			(0.10	)
Year ended 3-31-2016		10.92		0.07		(0.05	)		0.02			(0.07	)		—			(0.07	)
Year ended 3-31-2015		10.90		0.07		0.02			0.09			(0.07	)		—			(0.07	)
Year ended 3-31-2014		11.20		0.06		(0.23	)		(0.17	)		(0.07	)		(0.06	)		(0.13	)
Year ended 3-31-2013		11.16		0.08		0.09			0.17			(0.10	)		(0.03	)		(0.13	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		10.80		0.09		0.04			0.13			(0.09	)		—			(0.09	)
Year ended 3-31-2017		10.87		0.16		(0.06	)		0.10			(0.17	)		—			(0.17	)
Year ended 3-31-2016		10.92		0.13		(0.04	)		0.09			(0.14	)		—			(0.14	)
Year ended 3-31-2015		10.90		0.13		0.03			0.16			(0.14	)		—			(0.14	)
Year ended 3-31-2014		11.20		0.13		(0.23	)		(0.10	)		(0.14	)		(0.06	)		(0.20	)
Year ended 3-31-2013		11.16		0.15		0.09			0.24			(0.17	)		(0.03	)		(0.20	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		10.80		0.10		0.05			0.15			(0.11	)		—			(0.11	)
Year ended 3-31-2017		10.87		0.19		(0.06	)		0.13			(0.20	)		—			(0.20	)
Year ended 3-31-2016		10.92		0.17		(0.04	)		0.13			(0.18	)		—			(0.18	)
Year ended 3-31-2015		10.90		0.17		0.03			0.20			(0.18	)		—			(0.18	)
Year ended 3-31-2014		11.20		0.17		(0.23	)		(0.06	)		(0.18	)		(0.06	)		(0.24	)
Year ended 3-31-2013		11.16		0.19		0.09			0.28			(0.21	)		(0.03	)		(0.24	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		10.80		0.11		0.04			0.15			(0.11	)		—			(0.11	)
Year ended 3-31-2017		10.87		0.21		(0.06	)		0.15			(0.22	)		—			(0.22	)
Year ended 3-31-2016		10.92		0.19		(0.05	)		0.14			(0.19	)		—			(0.19	)
Year ended 3-31-2015(6)		10.91		0.13		0.01			0.14			(0.13	)		—			(0.13	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		10.80		0.07		0.04			0.11			(0.07	)		—			(0.07	)
Year ended 3-31-2017		10.87		0.13		(0.06	)		0.07			(0.14	)		—			(0.14	)
Year ended 3-31-2016		10.92		0.11		(0.05	)		0.06			(0.11	)		—			(0.11	)
Year ended 3-31-2015		10.90		0.11		0.03			0.14			(0.12	)		—			(0.12	)
Year ended 3-31-2014		11.20		0.11		(0.23	)		(0.12	)		(0.12	)		(0.06	)		(0.18	)
Year ended 3-31-2013(8)		11.19		0.02		0.02			0.04			(0.03	)		—			(0.03	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		10.80		0.09		0.04			0.13			(0.09	)		—			(0.09	)
Year ended 3-31-2017		10.87		0.17		(0.06	)		0.11			(0.18	)		—			(0.18	)
Year ended 3-31-2016		10.92		0.15		(0.05	)		0.10			(0.15	)		—			(0.15	)
Year ended 3-31-2015		10.90		0.15		0.02			0.17			(0.15	)		—			(0.15	)
Year ended 3-31-2014		11.20		0.14		(0.23	)		(0.09	)		(0.15	)		(0.06	)		(0.21	)
Year ended 3-31-2013		11.16		0.17		0.08			0.25			(0.18	)		(0.03	)		(0.21	)

* 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.

    .

168 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 9-30-2017 (unaudited)	$	10.84		1.24	%	$	478			0.89	%(4)		1.66	%(4)		—	%		—	%		12	%
Year ended 3-31-2017		10.80		0.99			536			0.88			1.59			—			—			65
Year ended 3-31-2016		10.87		0.95			1,589			0.88			1.36			—			—			46
Year ended 3-31-2015		10.92		1.60			1,504			0.88			1.36			—			—			39
Year ended 3-31-2014		10.90		-0.74			1,446			0.89			1.31			—			—			39
Year ended 3-31-2013		11.20		2.29			1,211			0.88			1.48			—			—			55
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		10.84		0.77			7			1.82	(4)		0.73	(4)		—			—			12
Year ended 3-31-2017		10.80		0.12			10			1.74			0.71			—			—			65
Year ended 3-31-2016		10.87		0.12			14			1.71			0.54			—			—			46
Year ended 3-31-2015		10.92		0.75			13			1.72			0.52			—			—			39
Year ended 3-31-2014		10.90		-1.59			19			1.76			0.44			—			—			39
Year ended 3-31-2013		11.20		1.45			25			1.71			0.66			—			—			55
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.84		0.85			72			1.66	(4)		0.89	(4)		—			—			12
Year ended 3-31-2017		10.80		0.24			87			1.62			0.83			—			—			65
Year ended 3-31-2016		10.87		0.22			128			1.61			0.63			—			—			46
Year ended 3-31-2015		10.92		0.83			117			1.64			0.60			—			—			39
Year ended 3-31-2014		10.90		-1.47			131			1.63			0.56			—			—			39
Year ended 3-31-2013		11.20		1.54			218			1.61			0.76			—			—			55
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		10.84		1.19			5			0.98	(4)		1.57	(4)		1.00	(4)		1.55	(4)		12
Year ended 3-31-2017		10.80		0.89			5			0.98			1.46			—			—			65
Year ended 3-31-2016		10.87		0.83			4			1.00			1.24			1.03			1.21			46
Year ended 3-31-2015		10.92		1.48			4			1.00			1.24			1.03			1.21			39
Year ended 3-31-2014		10.90		-0.85			3			1.00			1.20			1.02			1.18			39
Year ended 3-31-2013		11.20		2.17			4			1.00			1.35			—			—			55
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		10.84		1.36			785			0.65	(4)		1.90	(4)		—			—			12
Year ended 3-31-2017		10.80		1.23			871			0.64			1.79			—			—			65
Year ended 3-31-2016		10.87		1.20			56			0.64			1.60			—			—			46
Year ended 3-31-2015		10.92		1.86			44			0.63			1.60			—			—			39
Year ended 3-31-2014		10.90		-0.50			49			0.64			1.54			—			—			39
Year ended 3-31-2013		11.20		2.54			117			0.64			1.72			—			—			55
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		10.84		1.44			88			0.50	(4)		2.05	(4)		—			—			12
Year ended 3-31-2017		10.80		1.38			88			0.49			1.94			—			—			65
Year ended 3-31-2016		10.87		1.35			2			0.49			1.76			—			—			46
Year ended 3-31-2015(6)		10.92		1.31			3			0.48	(4)		1.75	(4)		—			—			39	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		10.84		1.05			1			1.26	(4)		1.29	(4)		—			—			12
Year ended 3-31-2017		10.80		0.62			1			1.24			1.21			—			—			65
Year ended 3-31-2016		10.87		0.59			1			1.24			0.98			—			—			46
Year ended 3-31-2015		10.92		1.24			1			1.23			1.00			—			—			39
Year ended 3-31-2014		10.90		-1.08			—	*		1.24			0.96			—			—			39
Year ended 3-31-2013(8)		11.20		0.41			—	*		1.21	(4)		0.59	(4)		—			—			55	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		10.84		1.24			13			0.89	(4)		1.66	(4)		0.91	(4)		1.64	(4)		12
Year ended 3-31-2017		10.80		0.99			16			0.88			1.57			0.89			1.56			65
Year ended 3-31-2016		10.87		0.95			16			0.88			1.35			0.89			1.34			46
Year ended 3-31-2015		10.92		1.59			21			0.88			1.35			0.89			1.34			39
Year ended 3-31-2014		10.90		-0.74			26			0.89			1.30			0.90			1.29			39
Year ended 3-31-2013		11.20		2.29			58			0.88			1.48			0.89			1.47			55

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

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

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 169

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	10.58	$	0.01		$	1.15		$	1.16		$	—		$	—	$	—
Year ended 3-31-2017		9.46		0.08			1.14			1.22			(0.10	)		—		(0.10	)
Year ended 3-31-2016		10.52		0.07			(1.06	)		(0.99	)		(0.07	)		—		(0.07	)
Year ended 3-31-2015		10.15		0.14			0.37			0.51			(0.14	)		—		(0.14	)
Year ended 3-31-2014		8.98		0.11			1.17			1.28			(0.11	)		—		(0.11	)
Year ended 3-31-2013		8.70		0.11			0.29			0.40			(0.12	)		—		(0.12	)
Class B Shares(6)
Six-month period ended 9-30-2017 (unaudited)		10.35		(0.04	)		1.14			1.10			—			—		—
Year ended 3-31-2017		9.25		0.01			1.13			1.14			(0.04	)		—		(0.04	)
Year ended 3-31-2016		10.33		(0.02	)		(1.06	)		(1.08	)		—	*		—		—	*
Year ended 3-31-2015		9.99		0.06			0.36			0.42			(0.08	)		—		(0.08	)
Year ended 3-31-2014		8.85		0.03			1.17			1.20			(0.06	)		—		(0.06	)
Year ended 3-31-2013		8.59		0.04			0.29			0.33			(0.07	)		—		(0.07	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		10.38		(0.03	)		1.14			1.11			—			—		—
Year ended 3-31-2017		9.28		0.02			1.13			1.15			(0.05	)		—		(0.05	)
Year ended 3-31-2016		10.36		0.00	*		(1.07	)		(1.07	)		(0.01	)		—		(0.01	)
Year ended 3-31-2015		10.02		0.07			0.36			0.43			(0.09	)		—		(0.09	)
Year ended 3-31-2014		8.87		0.04			1.17			1.21			(0.06	)		—		(0.06	)
Year ended 3-31-2013		8.61		0.04			0.29			0.33			(0.07	)		—		(0.07	)
Class E Shares(7)
Six-month period ended 9-30-2017 (unaudited)		10.59		0.02			1.14			1.16			—			—		—
Year ended 3-31-2017		9.47		0.11			1.12			1.23			(0.11	)		—		(0.11	)
Year ended 3-31-2016		10.53		0.08			(1.06	)		(0.98	)		(0.08	)		—		(0.08	)
Year ended 3-31-2015		10.16		0.15			0.37			0.52			(0.15	)		—		(0.15	)
Year ended 3-31-2014		8.99		0.12			1.17			1.29			(0.12	)		—		(0.12	)
Year ended 3-31-2013		8.70		0.12			0.30			0.42			(0.13	)		—		(0.13	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		10.63		0.03			1.14			1.17			—			—		—
Year ended 3-31-2017		9.50		0.16			1.10			1.26			(0.13	)		—		(0.13	)
Year ended 3-31-2016		10.54		0.13			(1.08	)		(0.95	)		(0.09	)		—		(0.09	)
Year ended 3-31-2015		10.17		0.19			0.35			0.54			(0.17	)		—		(0.17	)
Year ended 3-31-2014		9.01		0.14			1.15			1.29			(0.13	)		—		(0.13	)
Year ended 3-31-2013		8.73		0.13			0.30			0.43			(0.15	)		—		(0.15	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(8)		11.17		0.02			0.61			0.63			—			—		—
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		10.55		0.00	*		1.15			1.15			—			—		—
Year ended 3-31-2017		9.44		0.09			1.11			1.20			(0.09	)		—		(0.09	)
Year ended 3-31-2016		10.50		0.06			(1.06	)		(1.00	)		(0.06	)		—		(0.06	)
Year ended 3-31-2015		10.13		0.13			0.37			0.50			(0.13	)		—		(0.13	)
Year ended 3-31-2014		8.97		0.10			1.16			1.26			(0.10	)		—		(0.10	)
Year ended 3-31-2013(10)		8.88		(0.01	)		0.10			0.09			—			—		—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		10.58		0.02			1.14			1.16			—			—		—
Year ended 3-31-2017		9.46		0.11			1.12			1.23			(0.11	)		—		(0.11	)
Year ended 3-31-2016		10.51		0.07			(1.04	)		(0.97	)		(0.08	)		—		(0.08	)
Year ended 3-31-2015		10.14		0.17			0.35			0.52			(0.15	)		—		(0.15	)
Year ended 3-31-2014		8.97		0.13			1.16			1.29			(0.12	)		—		(0.12	)
Year ended 3-31-2013		8.69		0.12			0.29			0.41			(0.13	)		—		(0.13	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

(3) Does not include expenses of the underlying Ivy Funds in which the Fund invests.

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

(5) Annualized.

    .

170 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(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver(3)			Ratio of Expenses to Average  Net Assets Excluding Expense Waiver(3)(4)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)(4)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	11.74		10.96	%	$	78			0.49	%(5)		0.24	%(5)		—	%		—	%		7	%
Year ended 3-31-2017		10.58		13.00			73			0.49			0.88			0.52			0.85			24
Year ended 3-31-2016		9.46		-9.41			188			0.46			0.71			—			—			37
Year ended 3-31-2015		10.52		5.17			228			0.48			1.36			—			—			4
Year ended 3-31-2014		10.15		14.33			254			0.49			1.16			—			—			21
Year ended 3-31-2013		8.98		4.65			183			0.49			1.32			—			—			21
Class B Shares(6)
Six-month period ended 9-30-2017 (unaudited)		11.45		10.63			1			1.40	(5)		-0.68	(5)		1.49	(5)		-0.77	(5)		7
Year ended 3-31-2017		10.35		12.39			1			1.40			0.12			1.47			0.05			24
Year ended 3-31-2016		9.25		-10.42			2			1.40			-0.24			1.48			-0.32			37
Year ended 3-31-2015		10.33		4.28			2			1.36			0.60			—			—			4
Year ended 3-31-2014		9.99		13.53			3			1.39			0.28			—			—			21
Year ended 3-31-2013		8.85		3.83			2			1.40			0.44			—			—			21
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		11.49		10.69			5			1.28	(5)		-0.53	(5)		—			—			7
Year ended 3-31-2017		10.38		12.44			4			1.27			0.25			—			—			24
Year ended 3-31-2016		9.28		-10.30			5			1.27			-0.04			—			—			37
Year ended 3-31-2015		10.36		4.32			5			1.29			0.73			—			—			4
Year ended 3-31-2014		10.02		13.57			6			1.26			0.43			—			—			21
Year ended 3-31-2013		8.87		4.01			5			1.29			0.53			—			—			21
Class E Shares(7)
Six-month period ended 9-30-2017 (unaudited)		11.75		11.05			1			0.39	(5)		0.34	(5)		0.40	(5)		0.33	(5)		7
Year ended 3-31-2017		10.59		13.07			—	*		0.39			1.16			—			—			24
Year ended 3-31-2016		9.47		-9.36			—	*		0.39			0.79			—			—			37
Year ended 3-31-2015		10.53		5.25			—	*		0.39			1.49			—			—			4
Year ended 3-31-2014		10.16		14.38			—	*		0.40			1.24			—			—			21
Year ended 3-31-2013		8.99		4.86			—	*		0.39			1.44			—			—			21
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		11.80		11.01			120			0.16	(5)		0.57	(5)		0.18	(5)		0.55	(5)		7
Year ended 3-31-2017		10.63		13.32			109			0.16			1.56			0.16			1.56			24
Year ended 3-31-2016		9.50		-9.00			1			0.16			1.28			—			—			37
Year ended 3-31-2015		10.54		5.41			1			0.16			1.82			0.18			1.80			4
Year ended 3-31-2014		10.17		14.41			1			0.16			1.47			—			—			21
Year ended 3-31-2013		9.01		4.97			1			0.16			1.46			—			—			21
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(8)		11.80		5.64			—	*		0.14	(5)		0.64	(5)		—			—			7	(9)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		11.70		10.90			1			0.66	(5)		0.08	(5)		—			—			7
Year ended 3-31-2017		10.55		12.78			1			0.66			0.94			—			—			24
Year ended 3-31-2016		9.44		-9.55			1			0.64			0.55			—			—			37
Year ended 3-31-2015		10.50		5.07			1			0.63			1.26			—			—			4
Year ended 3-31-2014		10.13		14.12			1			0.63			1.01			—			—			21
Year ended 3-31-2013(10)		8.97		1.01			—	*		0.72	(5)		-0.55	(5)		—			—			21	(11)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		11.74		10.96			1			0.38	(5)		0.33	(5)		0.41	(5)		0.30	(5)		7
Year ended 3-31-2017		10.58		13.10			1			0.38			1.15			0.42			1.11			24
Year ended 3-31-2016		9.46		-9.28			1			0.38			0.68			0.40			0.66			37
Year ended 3-31-2015		10.51		5.26			2			0.38			1.63			0.47			1.54			4
Year ended 3-31-2014		10.14		14.42			2			0.40			1.33			—			—			21
Year ended 3-31-2013		8.97		4.77			1			0.38			1.42			—			—			21

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

(7) Class share is closed to investment.

(8) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(9) Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 171

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MICRO CAP GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Loss(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	23.67	$	(0.14	)	$	1.41		$	1.27		$	—	$	—		$	—
Year ended 3-31-2017		18.14		(0.29	)		6.14			5.85			—		(0.32	)		(0.32	)
Year ended 3-31-2016		24.73		(0.32	)		(5.37	)		(5.69	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		27.31		(0.36	)		(0.82	)		(1.18	)		—		(1.40	)		(1.40	)
Year ended 3-31-2014		20.45		(0.36	)		8.65			8.29			—		(1.43	)		(1.43	)
Year ended 3-31-2013		19.27		(0.25	)		1.43			1.18			—		—			—
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		22.21		(0.24	)		1.33			1.09			—		—			—
Year ended 3-31-2017		17.20		(0.47	)		5.80			5.33			—		(0.32	)		(0.32	)
Year ended 3-31-2016		23.70		(0.49	)		(5.11	)		(5.60	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		26.23		(0.56	)		(0.79	)		(1.35	)		—		(1.18	)		(1.18	)
Year ended 3-31-2014		19.86		(0.57	)		8.36			7.79			—		(1.42	)		(1.42	)
Year ended 3-31-2013		18.93		(0.44	)		1.37			0.93			—		—			—
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		22.58		(0.23	)		1.35			1.12			—		—			—
Year ended 3-31-2017		17.45		(0.45	)		5.90			5.45			—		(0.32	)		(0.32	)
Year ended 3-31-2016		24.00		(0.47	)		(5.18	)		(5.65	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		26.56		(0.53	)		(0.80	)		(1.33	)		—		(1.23	)		(1.23	)
Year ended 3-31-2014		20.05		(0.52	)		8.45			7.93			—		(1.42	)		(1.42	)
Year ended 3-31-2013		19.04		(0.38	)		1.39			1.01			—		—			—
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		24.28		(0.10	)		1.45			1.35			—		—			—
Year ended 3-31-2017		18.53		(0.23	)		6.30			6.07			—		(0.32	)		(0.32	)
Year ended 3-31-2016		25.12		(0.22	)		(5.47	)		(5.69	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		27.65		(0.27	)		(0.83	)		(1.10	)		—		(1.43	)		(1.43	)
Year ended 3-31-2014		20.65		(0.26	)		8.75			8.49			—		(1.49	)		(1.49	)
Year ended 3-31-2013		19.37		(0.17	)		1.45			1.28			—		—			—
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		24.43		(0.08	)		1.47			1.39			—		—			—
Year ended 3-31-2017		18.61		(0.18	)		6.32			6.14			—		(0.32	)		(0.32	)
Year ended 3-31-2016		25.19		(0.19	)		(5.49	)		(5.68	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015(5)		23.73		(0.15	)		3.01			2.86			—		(1.40	)		(1.40	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		23.55		(0.17	)		1.41			1.24			—		—			—
Year ended 3-31-2017		18.08		(0.34	)		6.13			5.79			—		(0.32	)		(0.32	)
Year ended 3-31-2016		24.69		(0.35	)		(5.36	)		(5.71	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		27.27		(0.41	)		(0.81	)		(1.22	)		—		(1.36	)		(1.36	)
Year ended 3-31-2014		20.45		(0.40	)		8.64			8.24			—		(1.42	)		(1.42	)
Year ended 3-31-2013(7)		17.77		(0.10	)		2.78			2.68			—		—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		24.47		(0.13	)		1.47			1.34			—		—			—
Year ended 3-31-2017		18.72		(0.27	)		6.34			6.07			—		(0.32	)		(0.32	)
Year ended 3-31-2016		25.44		(0.28	)		(5.54	)		(5.82	)		—		(0.90	)		(0.90	)
Year ended 3-31-2015		28.02		(0.33	)		(0.84	)		(1.17	)		—		(1.41	)		(1.41	)
Year ended 3-31-2014		20.51		(0.33	)		9.29			8.96			—		(1.45	)		(1.45	)
Year ended 3-31-2013		19.29		(0.22	)		1.44			1.22			—		—			—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

(3) Annualized.

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

    .

172 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			Ratio of Net Investment Loss to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	24.94		5.37	%	$	80			1.64	%(3)		-1.18	%(3)		10	%
Year ended 3-31-2017		23.67		32.21			82			1.68			-1.36			32
Year ended 3-31-2016		18.14		-23.51			130			1.69			-1.42			84
Year ended 3-31-2015		24.73		-3.91			199			1.64			-1.50			47
Year ended 3-31-2014		27.31		41.32			213			1.64			-1.45			67
Year ended 3-31-2013		20.45		6.12			80			1.78			-1.36			51
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		23.30		4.91			1			2.57	(3)		-2.11	(3)		10
Year ended 3-31-2017		22.21		30.94			2			2.60			-2.28			32
Year ended 3-31-2016		17.20		-24.16			1			2.57			-2.29			84
Year ended 3-31-2015		23.70		-4.80			2			2.54			-2.40			47
Year ended 3-31-2014		26.23		39.96			3			2.59			-2.40			67
Year ended 3-31-2013		19.86		4.97			2			2.90			-2.48			51
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		23.70		4.96			7			2.41	(3)		-1.95	(3)		10
Year ended 3-31-2017		22.58		31.19			7			2.45			-2.14			32
Year ended 3-31-2016		17.45		-24.06			7			2.42			-2.15			84
Year ended 3-31-2015		24.00		-4.63			10			2.39			-2.25			47
Year ended 3-31-2014		26.56		40.28			14			2.35			-2.15			67
Year ended 3-31-2013		20.05		5.36			5			2.55			-2.14			51
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		25.63		5.56			72			1.27	(3)		-0.81	(3)		10
Year ended 3-31-2017		24.28		32.72			71			1.27			-0.99			32
Year ended 3-31-2016		18.53		-23.14			10			1.25			-0.96			84
Year ended 3-31-2015		25.12		-3.56			21			1.24			-1.09			47
Year ended 3-31-2014		27.65		41.90			34			1.23			-1.01			67
Year ended 3-31-2013		20.65		6.66			4			1.31			-0.93			51
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		25.82		5.69			3			1.09	(3)		-0.62	(3)		10
Year ended 3-31-2017		24.43		32.96			2			1.09			-0.79			32
Year ended 3-31-2016		18.61		-23.03			2			1.08			-0.84			84
Year ended 3-31-2015(5)		25.19		12.53			2			1.08	(3)		-0.94	(3)		47	(6)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		24.79		5.27			1			1.84	(3)		-1.38	(3)		10
Year ended 3-31-2017		23.55		31.99			1			1.85			-1.57			32
Year ended 3-31-2016		18.08		-23.63			1			1.84			-1.58			84
Year ended 3-31-2015		24.69		-4.08			1			1.83			-1.69			47
Year ended 3-31-2014		27.27		41.09			—	*		1.84			-1.66			67
Year ended 3-31-2013(7)		20.45		15.08			—	*		1.89	(3)		-1.84	(3)		51	(8)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		25.81		5.48			1			1.49	(3)		-1.02	(3)		10
Year ended 3-31-2017		24.47		32.39			1			1.51			-1.20			32
Year ended 3-31-2016		18.72		-23.36			1			1.50			-1.21			84
Year ended 3-31-2015		25.44		-3.77			2			1.49			-1.34			47
Year ended 3-31-2014		28.02		44.49			3			1.50			-1.30			67
Year ended 3-31-2013		20.51		6.32			1			1.60			-1.21			51

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

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 173

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MID CAP GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	20.81	$	(0.05	)	$	2.35		$	2.30		$	—	$	—		$	—
Year ended 3-31-2017		18.96		(0.08	)		2.71			2.63			—		(0.78	)		(0.78	)
Year ended 3-31-2016		23.43		(0.06	)		(2.33	)		(2.39	)		—		(2.08	)		(2.08	)
Year ended 3-31-2015		23.45		(0.12	)		2.49			2.37			—		(2.39	)		(2.39	)
Year ended 3-31-2014		20.22		(0.14	)		4.17			4.03			—		(0.80	)		(0.80	)
Year ended 3-31-2013		18.62		(0.09	)		1.80			1.71			—		(0.11	)		(0.11	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		17.02		(0.11	)		1.92			1.81			—		—			—
Year ended 3-31-2017		15.76		(0.20	)		2.24			2.04			—		(0.78	)		(0.78	)
Year ended 3-31-2016		19.84		(0.19	)		(1.96	)		(2.15	)		—		(1.93	)		(1.93	)
Year ended 3-31-2015		20.30		(0.25	)		2.13			1.88			—		(2.34	)		(2.34	)
Year ended 3-31-2014		17.66		(0.27	)		3.61			3.34			—		(0.70	)		(0.70	)
Year ended 3-31-2013		16.42		(0.23	)		1.58			1.35			—		(0.11	)		(0.11	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		18.09		(0.11	)		2.03			1.92			—		—			—
Year ended 3-31-2017		16.69		(0.20	)		2.38			2.18			—		(0.78	)		(0.78	)
Year ended 3-31-2016		20.88		(0.19	)		(2.07	)		(2.26	)		—		(1.93	)		(1.93	)
Year ended 3-31-2015		21.24		(0.26	)		2.25			1.99			—		(2.35	)		(2.35	)
Year ended 3-31-2014		18.44		(0.26	)		3.77			3.51			—		(0.71	)		(0.71	)
Year ended 3-31-2013		17.11		(0.21	)		1.65			1.44			—		(0.11	)		(0.11	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		20.34		(0.05	)		2.30			2.25			—		—			—
Year ended 3-31-2017		18.54		(0.09	)		2.67			2.58			—		(0.78	)		(0.78	)
Year ended 3-31-2016		22.92		(0.08	)		(2.29	)		(2.37	)		—		(2.01	)		(2.01	)
Year ended 3-31-2015		23.02		(0.19	)		2.46			2.27			—		(2.37	)		(2.37	)
Year ended 3-31-2014		19.90		(0.20	)		4.09			3.89			—		(0.77	)		(0.77	)
Year ended 3-31-2013		18.37		(0.14	)		1.78			1.64			—		(0.11	)		(0.11	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		22.23		(0.02	)		2.51			2.49			—		—			—
Year ended 3-31-2017		20.15		(0.03	)		2.89			2.86			—		(0.78	)		(0.78	)
Year ended 3-31-2016		24.77		0.00	*		(2.46	)		(2.46	)		—		(2.16	)		(2.16	)
Year ended 3-31-2015		24.60		(0.05	)		2.63			2.58			—		(2.41	)		(2.41	)
Year ended 3-31-2014		21.17		(0.07	)		4.36			4.29			—		(0.86	)		(0.86	)
Year ended 3-31-2013		19.43		(0.04	)		1.89			1.85			—		(0.11	)		(0.11	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		22.35		0.00	*		2.52			2.52			—		—			—
Year ended 3-31-2017		20.22		0.00	*		2.91			2.91			—		(0.78	)		(0.78	)
Year ended 3-31-2016		24.81		0.05			(2.48	)		(2.43	)		—		(2.16	)		(2.16	)
Year ended 3-31-2015(6)		24.38		(0.02	)		2.84			2.82			—		(2.39	)		(2.39	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		20.40		(0.08	)		2.30			2.22			—		—			—
Year ended 3-31-2017		18.65		(0.14	)		2.67			2.53			—		(0.78	)		(0.78	)
Year ended 3-31-2016		23.08		(0.13	)		(2.29	)		(2.42	)		—		(2.01	)		(2.01	)
Year ended 3-31-2015		23.18		(0.18	)		2.45			2.27			—		(2.37	)		(2.37	)
Year ended 3-31-2014		20.02		(0.19	)		4.12			3.93			—		(0.77	)		(0.77	)
Year ended 3-31-2013		18.49		(0.15	)		1.79			1.64			—		(0.11	)		(0.11	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		21.66		(0.05	)		2.45			2.40			—		—			—
Year ended 3-31-2017		19.69		(0.08	)		2.83			2.75			—		(0.78	)		(0.78	)
Year ended 3-31-2016		24.26		(0.06	)		(2.41	)		(2.47	)		—		(2.10	)		(2.10	)
Year ended 3-31-2015		24.18		(0.11	)		2.58			2.47			—		(2.39	)		(2.39	)
Year ended 3-31-2014		20.83		(0.12	)		4.30			4.18			—		(0.83	)		(0.83	)
Year ended 3-31-2013		19.17		(0.09	)		1.86			1.77			—		(0.11	)		(0.11	)

* 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.

    .

174 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	23.11		11.05	%	$	430		1.31	%(4)		-0.43	%(4)		1.33	%(4)		-0.45	%(4)		13	%
Year ended 3-31-2017		20.81		13.99			428		1.31			-0.39			1.35			-0.43			14
Year ended 3-31-2016		18.96		-10.27			787		1.29			-0.30			—			—			38
Year ended 3-31-2015		23.43		10.73			1,025		1.28			-0.50			1.29			-0.51			35
Year ended 3-31-2014		23.45		20.09			1,558		1.34			-0.63			—			—			43
Year ended 3-31-2013		20.22		9.28			1,160		1.31			-0.52			—			—			32
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		18.83		10.63			17		2.09	(4)		-1.22	(4)		—			—			13
Year ended 3-31-2017		17.02		13.07			17		2.10			-1.24			—			—			14
Year ended 3-31-2016		15.76		-10.95			19		2.05			-1.06			—			—			38
Year ended 3-31-2015		19.84		9.94			24		2.05			-1.26			—			—			35
Year ended 3-31-2014		20.30		19.14			26		2.10			-1.39			—			—			43
Year ended 3-31-2013		17.66		8.27			21		2.21			-1.42			—			—			32
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		20.01		10.67			209		2.03	(4)		-1.16	(4)		—			—			13
Year ended 3-31-2017		18.09		13.19			213		2.04			-1.16			—			—			14
Year ended 3-31-2016		16.69		-10.92			264		2.01			-1.02			—			—			38
Year ended 3-31-2015		20.88		10.00			343		2.01			-1.22			—			—			35
Year ended 3-31-2014		21.24		19.25			295		2.01			-1.31			—			—			43
Year ended 3-31-2013		18.44		8.46			183		2.07			-1.28			—			—			32
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		22.59		11.06			9		1.30	(4)		-0.43	(4)		1.60	(4)		-0.73	(4)		13
Year ended 3-31-2017		20.34		14.04			9		1.30			-0.47			1.65			-0.82			14
Year ended 3-31-2016		18.54		-10.41			7		1.41			-0.41			1.63			-0.63			38
Year ended 3-31-2015		22.92		10.46			7		1.60			-0.82			1.63			-0.85			35
Year ended 3-31-2014		23.02		19.75			6		1.60			-0.90			1.71			-1.01			43
Year ended 3-31-2013		19.90		8.97			4		1.60			-0.81			1.90			-1.11			32
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		24.72		11.20			1,201		1.03	(4)		-0.16	(4)		—			—			13
Year ended 3-31-2017		22.23		14.31			1,112		1.04			-0.15			—			—			14
Year ended 3-31-2016		20.15		-10.00			1,423		1.00			-0.01			—			—			38
Year ended 3-31-2015		24.77		11.09			2,933		0.99			-0.19			—			—			35
Year ended 3-31-2014		24.60		20.52			2,098		0.99			-0.28			—			—			43
Year ended 3-31-2013		21.17		9.57			1,316		1.02			-0.24			—			—			32
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		24.87		11.32			136		0.88	(4)		0.01	(4)		—			—			13
Year ended 3-31-2017		22.35		14.51			65		0.87			-0.02			—			—			14
Year ended 3-31-2016		20.22		-9.85			77		0.85			0.24			—			—			38
Year ended 3-31-2015(6)		24.81		12.18			27		0.84	(4)		-0.15	(4)		—			—			35	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		22.62		10.88			51		1.63	(4)		-0.76	(4)		—			—			13
Year ended 3-31-2017		20.40		13.68			55		1.62			-0.75			—			—			14
Year ended 3-31-2016		18.65		-10.55			71		1.60			-0.61			—			—			38
Year ended 3-31-2015		23.08		10.40			96		1.59			-0.80			—			—			35
Year ended 3-31-2014		23.18		19.83			103		1.59			-0.89			—			—			43
Year ended 3-31-2013		20.02		8.92			77		1.62			-0.82			—			—			32
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		24.06		11.08			289		1.27	(4)		-0.40	(4)		—			—			13
Year ended 3-31-2017		21.66		14.08			321		1.26			-0.38			—			—			14
Year ended 3-31-2016		19.69		-10.26			471		1.24			-0.25			—			—			38
Year ended 3-31-2015		24.26		10.82			706		1.23			-0.44			—			—			35
Year ended 3-31-2014		24.18		20.21			694		1.23			-0.53			—			—			43
Year ended 3-31-2013		20.83		9.33			521		1.27			-0.48			—			—			32

(4) Annualized.

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 175

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MID CAP INCOME OPPORTUNITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	12.68	$	0.10	$	0.27		$	0.37		$	(0.05	)	$	—		$	(0.05	)
Year ended 3-31-2017		10.93		0.15		1.71			1.86			(0.11	)		—			(0.11	)
Year ended 3-31-2016		11.10		0.15		(0.15	)		0.00	*		(0.15	)		(0.02	)		(0.17	)
Year ended 3-31-2015(4)		10.00		0.10		1.05			1.15			(0.05	)		—	*		(0.05	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		12.62		0.06		0.27			0.33			—			—			—
Year ended 3-31-2017		10.91		0.07		1.70			1.77			(0.06	)		—			(0.06	)
Year ended 3-31-2016		11.10		0.08		(0.16	)		(0.08	)		(0.09	)		(0.02	)		(0.11	)
Year ended 3-31-2015(4)		10.00		0.05		1.07			1.12			(0.02	)		—	*		(0.02	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		12.68		0.12		0.27			0.39			(0.06	)		—			(0.06	)
Year ended 3-31-2017		10.93		0.18		1.70			1.88			(0.13	)		—			(0.13	)
Year ended 3-31-2016		11.11		0.16		(0.16	)		0.00	*		(0.16	)		(0.02	)		(0.18	)
Year ended 3-31-2015(4)		10.00		0.09		1.07			1.16			(0.05	)		—	*		(0.05	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		12.70		0.12		0.27			0.39			(0.07	)		—			(0.07	)
Year ended 3-31-2017		10.94		0.19		1.72			1.91			(0.15	)		—			(0.15	)
Year ended 3-31-2016		11.11		0.19		(0.16	)		0.03			(0.18	)		(0.02	)		(0.20	)
Year ended 3-31-2015(4)		10.00		0.10		1.08			1.18			(0.07	)		—	*		(0.07	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		12.70		0.14		0.26			0.40			(0.07	)		—			(0.07	)
Year ended 3-31-2017		10.94		0.20		1.71			1.91			(0.15	)		—			(0.15	)
Year ended 3-31-2016		11.11		0.19		(0.16	)		0.03			(0.18	)		(0.02	)		(0.20	)
Year ended 3-31-2015(4)		10.00		0.10		1.08			1.18			(0.07	)		—	*		(0.07	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		12.65		0.08		0.28			0.36			(0.02	)		—			(0.02	)
Year ended 3-31-2017		10.92		0.12		1.69			1.81			(0.08	)		—			(0.08	)
Year ended 3-31-2016		11.10		0.11		(0.16	)		(0.05	)		(0.11	)		(0.02	)		(0.13	)
Year ended 3-31-2015(4)		10.00		0.06		1.07			1.13			(0.03	)		—	*		(0.03	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		12.68		0.10		0.27			0.37			(0.05	)		—			(0.05	)
Year ended 3-31-2017		10.93		0.15		1.71			1.86			(0.11	)		—			(0.11	)
Year ended 3-31-2016		11.11		0.16		(0.17	)		(0.01	)		(0.15	)		(0.02	)		(0.17	)
Year ended 3-31-2015(4)		10.00		0.09		1.07			1.16			(0.05	)		—	*		(0.05	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) For the period from October 1, 2014 (commencement of operations of the class) through March 31, 2015.

(5) Annualized

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

(7) Ratio of expenses to average net assets excluding offering cost was 1.31%.

(8) Ratio of expenses to average net assets excluding offering cost was 1.16%.

(9) Ratio of expenses to average net assets excluding offering cost was 2.03%.

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

    .

176 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 9-30-2017 (unaudited)	$	13.00		2.89	%	$	102		1.35	%(5)		1.64	%(5)		1.42	%(5)		1.57	%(5)		25	%
Year ended 3-31-2017		12.68		17.10			119		1.35			1.27			1.45			1.17			28
Year ended 3-31-2016		10.93		0.06			95		1.35	(7)		1.44			1.66			1.13			26
Year ended 3-31-2015(4)		11.10		11.56			43		1.35	(5)(8)		1.83	(5)		1.60	(5)		1.58	(5)		10	(6)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		12.95		2.61			13		2.07	(5)		0.92	(5)		2.18	(5)		0.81	(5)		25
Year ended 3-31-2017		12.62		16.19			15		2.07			0.51			2.13			0.45			28
Year ended 3-31-2016		10.91		-0.70			5		2.07	(9)		0.72			2.28			0.51			26
Year ended 3-31-2015(4)		11.10		11.26			3		2.07	(5)(10)		0.98	(5)		2.22	(5)		0.83	(5)		10	(6)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		13.01		3.07			2		1.18	(5)		1.83	(5)		—			—			25
Year ended 3-31-2017		12.68		17.21			3		1.23			1.47			—			—			28
Year ended 3-31-2016		10.93		0.01			2		1.30	(11)		1.50			1.41			1.39			26
Year ended 3-31-2015(4)		11.11		11.68			2		1.30	(5)(12)		1.70	(5)		1.42	(5)		1.58	(5)		10	(6)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		13.02		3.05			160		1.05	(5)		1.94	(5)		1.12	(5)		1.87	(5)		25
Year ended 3-31-2017		12.70		17.49			174		1.04			1.49			1.11			1.42			28
Year ended 3-31-2016		10.94		0.28			8		1.05	(13)		1.76			1.30			1.51			26
Year ended 3-31-2015(4)		11.11		11.81			9		1.05	(5)(14)		1.97	(5)		1.32	(5)		1.70	(5)		10	(6)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		13.03		3.20			52		0.95	(5)		2.19	(5)		—			—			25
Year ended 3-31-2017		12.70		17.54			5		0.98			1.65			—			—			28
Year ended 3-31-2016		10.94		0.28			3		1.05	(15)		1.75			1.16			1.64			26
Year ended 3-31-2015(4)		11.11		11.81			3		1.05	(5)(16)		1.97	(5)		1.18	(5)		1.84	(5)		10	(6)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		12.99		2.83			3		1.67	(5)		1.34	(5)		—			—			25
Year ended 3-31-2017		12.65		16.58			3		1.73			0.97			—			—			28
Year ended 3-31-2016		10.92		-0.41			2		1.80	(17)		1.00			1.91			0.89			26
Year ended 3-31-2015(4)		11.10		11.38			2		1.80	(5)(18)		1.20	(5)		1.92	(5)		1.08	(5)		10	(6)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		13.00		2.98			6		1.35	(5)		1.60	(5)		1.38	(5)		1.57	(5)		25
Year ended 3-31-2017		12.68		17.10			8		1.35			1.28			1.37			1.26			28
Year ended 3-31-2016		10.93		-0.03			5		1.35	(19)		1.46			1.58			1.23			26
Year ended 3-31-2015(4)		11.11		11.66			4		1.35	(5)(20)		1.73	(5)		1.57	(5)		1.51	(5)		10	(6)

(11) Ratio of expenses to average net assets excluding offering cost was 1.26%.

(12) Ratio of expenses to average net assets excluding offering cost was 1.11%.

(13) Ratio of expenses to average net assets excluding offering cost was 1.01%.

(14) Ratio of expenses to average net assets excluding offering cost was 0.86%.

(15) Ratio of expenses to average net assets excluding offering cost was 1.76%.

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

(17)  Ratio of expenses to average net assets excluding offering cost was 1.01%.

(18) Ratio of expenses to average net assets excluding offering cost was 0.86%.

(19) Ratio of expenses to average net assets excluding offering cost was 1.31%.

(20) Ratio of expenses to average net assets excluding offering cost was 1.16%.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 177

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MUNICIPAL BOND FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	11.82	$	0.17	$	0.11		$	0.28		$	(0.16	)	$	—	$	(0.16	)
Year ended 3-31-2017		12.13		0.28		(0.31	)		(0.03	)		(0.28	)		—		(0.28	)
Year ended 3-31-2016		12.07		0.28		0.06			0.34			(0.28	)		—		(0.28	)
Year ended 3-31-2015		11.74		0.31		0.33			0.64			(0.31	)		—		(0.31	)
Year ended 3-31-2014		12.19		0.34		(0.45	)		(0.11	)		(0.34	)		—		(0.34	)
Year ended 3-31-2013		11.88		0.34		0.31			0.65			(0.34	)		—		(0.34	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		11.82		0.12		0.12			0.24			(0.12	)		—		(0.12	)
Year ended 3-31-2017		12.13		0.19		(0.31	)		(0.12	)		(0.19	)		—		(0.19	)
Year ended 3-31-2016		12.07		0.19		0.06			0.25			(0.19	)		—		(0.19	)
Year ended 3-31-2015		11.74		0.22		0.33			0.55			(0.22	)		—		(0.22	)
Year ended 3-31-2014		12.19		0.25		(0.45	)		(0.20	)		(0.25	)		—		(0.25	)
Year ended 3-31-2013		11.88		0.25		0.31			0.56			(0.25	)		—		(0.25	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		11.82		0.12		0.12			0.24			(0.12	)		—		(0.12	)
Year ended 3-31-2017		12.13		0.19		(0.31	)		(0.12	)		(0.19	)		—		(0.19	)
Year ended 3-31-2016		12.07		0.19		0.06			0.25			(0.19	)		—		(0.19	)
Year ended 3-31-2015		11.74		0.22		0.33			0.55			(0.22	)		—		(0.22	)
Year ended 3-31-2014		12.19		0.25		(0.45	)		(0.20	)		(0.25	)		—		(0.25	)
Year ended 3-31-2013		11.88		0.25		0.31			0.56			(0.25	)		—		(0.25	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		11.82		0.18		0.12			0.30			(0.18	)		—		(0.18	)
Year ended 3-31-2017		12.13		0.31		(0.32	)		(0.01	)		(0.30	)		—		(0.30	)
Year ended 3-31-2016		12.07		0.31		0.05			0.36			(0.30	)		—		(0.30	)
Year ended 3-31-2015		11.74		0.33		0.34			0.67			(0.34	)		—		(0.34	)
Year ended 3-31-2014		12.19		0.36		(0.45	)		(0.09	)		(0.36	)		—		(0.36	)
Year ended 3-31-2013		11.88		0.36		0.31			0.67			(0.36	)		—		(0.36	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		11.90		0.09		0.04			0.13			(0.09	)		—		(0.09	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		11.82		0.16		0.12			0.28			(0.16	)		—		(0.16	)
Year ended 3-31-2017		12.13		0.28		(0.31	)		(0.03	)		(0.28	)		—		(0.28	)
Year ended 3-31-2016		12.07		0.28		0.06			0.34			(0.28	)		—		(0.28	)
Year ended 3-31-2015		11.74		0.31		0.33			0.64			(0.31	)		—		(0.31	)
Year ended 3-31-2014		12.19		0.34		(0.45	)		(0.11	)		(0.34	)		—		(0.34	)
Year ended 3-31-2013		11.88		0.34		0.31			0.65			(0.34	)		—		(0.34	)

* 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.

    .

178 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average  Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	11.94		2.40	%	$	62			1.01	%(4)		2.78	%(4)		—	%		—	%		—	%
Year ended 3-31-2017		11.82		-0.26			68			0.98			2.28			—			—			14
Year ended 3-31-2016		12.13		2.87			184			0.99			2.35			—			—			4
Year ended 3-31-2015		12.07		5.51			148			1.01			2.60			—			—			8
Year ended 3-31-2014		11.74		-0.86			113			1.02			2.90			—			—			7
Year ended 3-31-2013		12.19		5.50			133			1.01			2.77			—			—			6
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		11.94		2.02			2			1.77	(4)		2.02	(4)		—			—			—
Year ended 3-31-2017		11.82		-1.02			2			1.74			1.56			—			—			14
Year ended 3-31-2016		12.13		2.11			2			1.73			1.62			—			—			4
Year ended 3-31-2015		12.07		4.71			2			1.77			1.87			—			—			8
Year ended 3-31-2014		11.74		-1.63			2			1.79			2.12			—			—			7
Year ended 3-31-2013		12.19		4.72			4			1.75			2.04			—			—			6
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		11.94		2.02			21			1.78	(4)		2.01	(4)		—			—			—
Year ended 3-31-2017		11.82		-1.01			25			1.73			1.57			—			—			14
Year ended 3-31-2016		12.13		2.12			31			1.73			1.61			—			—			4
Year ended 3-31-2015		12.07		4.72			24			1.76			1.86			—			—			8
Year ended 3-31-2014		11.74		-1.62			21			1.78			2.12			—			—			7
Year ended 3-31-2013		12.19		4.71			31			1.76			2.03			—			—			6
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		11.94		2.51			91			0.83	(4)		2.96	(4)		—			—			—
Year ended 3-31-2017		11.82		-0.08			96			0.79			2.56			—			—			14
Year ended 3-31-2016		12.13		3.09			9			0.78			2.55			—			—			4
Year ended 3-31-2015		12.07		5.73			5			0.80			2.75			—			—			8
Year ended 3-31-2014		11.74		-0.65			2			0.81			3.11			—			—			7
Year ended 3-31-2013		12.19		5.72			2			0.80			2.94			—			—			6
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		11.94		1.09			—	*		0.71	(4)		3.10	(4)		—			—			—	(7)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		11.94		2.39			1			1.03	(4)(8)		2.76	(4)		1.07	(4)		2.72	(4)		—
Year ended 3-31-2017		11.82		-0.26			1			0.98			2.33			1.03			2.28			14
Year ended 3-31-2016		12.13		2.87			1			0.99			2.35			1.03			2.31			4
Year ended 3-31-2015		12.07		5.52			1			1.01			2.60			1.05			2.56			8
Year ended 3-31-2014		11.74		-0.87			1			1.02			2.89			1.06			2.85			7
Year ended 3-31-2013		12.19		5.49			1			1.01			2.78			1.06			2.73			6

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

(6) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(7) Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

(8) Annualized expense ratio based on the period excluding reorganization expenses was 1.01%.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 179

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MUNICIPAL HIGH INCOME FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	5.09	$	0.09	$	0.02		$	0.11		$	(0.10	)	$	—		$	(0.10	)
Year ended 3-31-2017		5.28		0.23		(0.19	)		0.04			(0.23	)		—			(0.23	)
Year ended 3-31-2016		5.31		0.22		(0.03	)		0.19			(0.22	)		—			(0.22	)
Year ended 3-31-2015		5.03		0.23		0.28			0.51			(0.23	)		—			(0.23	)
Year ended 3-31-2014		5.47		0.24		(0.42	)		(0.18	)		(0.24	)		(0.02	)		(0.26	)
Year ended 3-31-2013		5.23		0.21		0.24			0.45			(0.21	)		—			(0.21	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		5.09		0.07		0.02			0.09			(0.08	)		—			(0.08	)
Year ended 3-31-2017		5.28		0.19		(0.19	)		0.00	*		(0.19	)		—			(0.19	)
Year ended 3-31-2016		5.31		0.18		(0.03	)		0.15			(0.18	)		—			(0.18	)
Year ended 3-31-2015		5.03		0.19		0.28			0.47			(0.19	)		—			(0.19	)
Year ended 3-31-2014		5.47		0.20		(0.42	)		(0.22	)		(0.20	)		(0.02	)		(0.22	)
Year ended 3-31-2013		5.23		0.17		0.24			0.41			(0.17	)		—			(0.17	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		5.09		0.08		0.01			0.09			(0.08	)		—			(0.08	)
Year ended 3-31-2017		5.28		0.19		(0.19	)		0.00	*		(0.19	)		—			(0.19	)
Year ended 3-31-2016		5.31		0.18		(0.03	)		0.15			(0.18	)		—			(0.18	)
Year ended 3-31-2015		5.03		0.19		0.28			0.47			(0.19	)		—			(0.19	)
Year ended 3-31-2014		5.47		0.20		(0.42	)		(0.22	)		(0.20	)		(0.02	)		(0.22	)
Year ended 3-31-2013		5.23		0.17		0.24			0.41			(0.17	)		—			(0.17	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		5.09		0.10		0.01			0.11			(0.10	)		—			(0.10	)
Year ended 3-31-2017		5.28		0.24		(0.19	)		0.05			(0.24	)		—			(0.24	)
Year ended 3-31-2016		5.31		0.23		(0.03	)		0.20			(0.23	)		—			(0.23	)
Year ended 3-31-2015		5.03		0.24		0.28			0.52			(0.24	)		—			(0.24	)
Year ended 3-31-2014		5.47		0.24		(0.42	)		(0.18	)		(0.24	)		(0.02	)		(0.26	)
Year ended 3-31-2013		5.23		0.22		0.24			0.46			(0.22	)		—			(0.22	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		5.11		0.04		(0.01	)		0.03			(0.04	)		—			(0.04	)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		5.09		0.09		0.02			0.11			(0.10	)		—			(0.10	)
Year ended 3-31-2017		5.28		0.23		(0.19	)		0.04			(0.23	)		—			(0.23	)
Year ended 3-31-2016		5.31		0.22		(0.03	)		0.19			(0.22	)		—			(0.22	)
Year ended 3-31-2015		5.03		0.23		0.28			0.51			(0.23	)		—			(0.23	)
Year ended 3-31-2014		5.47		0.24		(0.42	)		(0.18	)		(0.24	)		(0.02	)		(0.26	)
Year ended 3-31-2013		5.23		0.21		0.24			0.45			(0.21	)		—			(0.21	)

* 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.

    .

180 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average  Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	5.10		2.08	%	$	201			0.88	%(4)		3.67	%(4)		0.91	%(4)		3.64	%(4)		1	%
Year ended 3-31-2017		5.09		0.65			235			0.87			4.27			—			—			8
Year ended 3-31-2016		5.28		3.61			389			0.86			4.19			0.88			4.17			4
Year ended 3-31-2015		5.31		10.29			377			0.85			4.46			0.87			4.44			9
Year ended 3-31-2014		5.03		-3.32			366			0.86			4.58			0.87			4.57			21
Year ended 3-31-2013		5.47		8.71			545			0.84			3.91			0.85			3.90			9
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		5.10		1.73			10			1.62	(4)		2.91	(4)		1.69	(4)		2.84	(4)		1
Year ended 3-31-2017		5.09		-0.11			11			1.62			3.52			1.63			3.51			8
Year ended 3-31-2016		5.28		2.84			14			1.62			3.43			1.64			3.41			4
Year ended 3-31-2015		5.31		9.44			15			1.62			3.69			1.64			3.67			9
Year ended 3-31-2014		5.03		-4.07			15			1.64			3.82			1.65			3.81			21
Year ended 3-31-2013		5.47		7.86			19			1.62			3.12			1.63			3.11			9
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		5.10		1.75			160			1.58	(4)		2.96	(4)		1.65	(4)		2.89	(4)		1
Year ended 3-31-2017		5.09		-0.07			182			1.58			3.56			1.60			3.54			8
Year ended 3-31-2016		5.28		2.87			237			1.58			3.47			1.60			3.45			4
Year ended 3-31-2015		5.31		9.50			238			1.58			3.72			1.60			3.70			9
Year ended 3-31-2014		5.03		-4.04			216			1.60			3.84			1.61			3.83			21
Year ended 3-31-2013		5.47		7.92			323			1.57			3.17			1.59			3.15			9
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		5.10		2.17			534			0.68	(4)		3.85	(4)		0.75	(4)		3.78	(4)		1
Year ended 3-31-2017		5.09		0.84			617			0.68			4.46			0.69			4.45			8
Year ended 3-31-2016		5.28		3.80			701			0.67			4.38			0.69			4.36			4
Year ended 3-31-2015		5.31		10.50			703			0.68			4.62			0.70			4.60			9
Year ended 3-31-2014		5.03		-3.16			586			0.69			4.76			0.70			4.75			21
Year ended 3-31-2013		5.47		8.88			749			0.68			4.06			0.69			4.05			9
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		5.10		0.63			—	*		0.58	(4)		3.27	(4)		0.61	(4)		3.24	(4)		1	(7)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		5.10		2.08			14			0.88	(4)		3.64	(4)		1.01	(4)		3.51	(4)		1
Year ended 3-31-2017		5.09		0.65			15			0.86			4.28			0.95			4.19			8
Year ended 3-31-2016		5.28		3.60			21			0.86			4.19			0.95			4.10			4
Year ended 3-31-2015		5.31		10.35			21			0.85			4.39			0.95			4.29			9
Year ended 3-31-2014		5.03		-3.32			15			0.85			4.52			0.95			4.42			21
Year ended 3-31-2013		5.47		8.71			34			0.84			3.92			0.94			3.82			9

(4) Annualized.

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

(6) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(7) Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 181

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SMALL CAP CORE FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	17.66	$	0.01		$	1.00		$	1.01		$	—		$	—		$	—
Year ended 3-31-2017		14.38		(0.05	)		4.14			4.09			—			(0.81	)		(0.81	)
Year ended 3-31-2016		17.47		(0.07	)		(0.87	)		(0.94	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		18.32		(0.04	)		0.99			0.95			—			(1.80	)		(1.80	)
Year ended 3-31-2014		17.23		(0.11	)		3.55			3.44			(0.07	)		(2.28	)		(2.35	)
Year ended 3-31-2013		14.96		0.02			2.82			2.84			—			(0.57	)		(0.57	)
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		14.45		(0.05	)		0.79			0.74			—			—			—
Year ended 3-31-2017		11.92		(0.17	)		3.43			3.26			—			(0.73	)		(0.73	)
Year ended 3-31-2016		15.01		(0.19	)		(0.75	)		(0.94	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		16.10		(0.18	)		0.84			0.66			—			(1.75	)		(1.75	)
Year ended 3-31-2014		15.39		(0.25	)		3.14			2.89			(0.02	)		(2.16	)		(2.18	)
Year ended 3-31-2013		13.48		(0.13	)		2.50			2.37			—			(0.46	)		(0.46	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		15.39		(0.04	)		0.86			0.82			—			—			—
Year ended 3-31-2017		12.64		(0.14	)		3.64			3.50			—			(0.75	)		(0.75	)
Year ended 3-31-2016		15.74		(0.16	)		(0.79	)		(0.95	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		16.76		(0.14	)		0.89			0.75			—			(1.77	)		(1.77	)
Year ended 3-31-2014		15.94		(0.21	)		3.26			3.05			(0.04	)		(2.19	)		(2.23	)
Year ended 3-31-2013		13.92		(0.08	)		2.60			2.52			—			(0.50	)		(0.50	)
Class E Shares(11)
Six-month period ended 9-30-2017 (unaudited)		18.32		0.04			1.02			1.06			—			—			—
Year ended 3-31-2017		14.87		0.00	*		4.30			4.30			—			(0.85	)		(0.85	)
Year ended 3-31-2016		17.93		(0.02	)		(0.89	)		(0.91	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		18.76		0.03			1.01			1.04			—			(1.87	)		(1.87	)
Year ended 3-31-2014		17.59		(0.04	)		3.63			3.59			(0.09	)		(2.33	)		(2.42	)
Year ended 3-31-2013		15.25		0.10			2.85			2.95			—			(0.61	)		(0.61	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		19.03		0.05			1.07			1.12			—			—			—
Year ended 3-31-2017		15.42		0.01			4.46			4.47			—			(0.86	)		(0.86	)
Year ended 3-31-2016		18.49		0.00	*		(0.92	)		(0.92	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		19.29		0.05			1.04			1.09			—			(1.89	)		(1.89	)
Year ended 3-31-2014		18.03		(0.02	)		3.72			3.70			(0.10	)		(2.34	)		(2.44	)
Year ended 3-31-2013		15.61		0.11			2.94			3.05			—			(0.63	)		(0.63	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		19.17		0.08			1.06			1.14			—			—			—
Year ended 3-31-2017		15.52		0.04			4.49			4.53			—			(0.88	)		(0.88	)
Year ended 3-31-2016		18.56		0.02			(0.91	)		(0.89	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015(5)		18.96		0.08			1.36			1.44			—			(1.84	)		(1.84	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		17.58		(0.02	)		1.00			0.98			—			—			—
Year ended 3-31-2017		14.33		(0.09	)		4.13			4.04			—			(0.79	)		(0.79	)
Year ended 3-31-2016		17.44		(0.10	)		(0.86	)		(0.96	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		18.31		(0.06	)		0.98			0.92			—			(1.79	)		(1.79	)
Year ended 3-31-2014		17.23		(0.13	)		3.54			3.41			(0.07	)		(2.26	)		(2.33	)
Year ended 3-31-2013)(7)		15.24		(0.02	)		2.01			1.99			—			—			—
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(9)		17.97		(0.02	)		0.73			0.71			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		18.51		0.03			1.03			1.06			—			—			—
Year ended 3-31-2017		15.03		(0.03	)		4.34			4.31			—			(0.83	)		(0.83	)
Year ended 3-31-2016		18.12		(0.05	)		(0.89	)		(0.94	)		—			(2.15	)		(2.15	)
Year ended 3-31-2015		18.94		(0.02	)		1.04			1.02			—			(1.84	)		(1.84	)
Year ended 3-31-2014		17.74		(0.07	)		3.66			3.59			(0.08	)		(2.31	)		(2.39	)
Year ended 3-31-2013		15.38		0.01			2.95			2.96			—			(0.60	)		(0.60	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

(3) Annualized.

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

    .

182 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			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	18.67		5.72	%	$	195			1.47	%(3)		0.16	%(3)		51	%
Year ended 3-31-2017		17.66		28.52			200			1.50			-0.28			133
Year ended 3-31-2016		14.38		-5.11			193			1.56			-0.45			135
Year ended 3-31-2015		17.47		5.74			240			1.54			-0.20			106
Year ended 3-31-2014		18.32		21.10			244			1.57			-0.62			61
Year ended 3-31-2013		17.23		19.49			226			1.66			0.15			52
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		15.19		5.12			3			2.45	(3)		-0.75	(3)		51
Year ended 3-31-2017		14.45		27.39			5			2.44			-1.26			133
Year ended 3-31-2016		11.92		-5.99			2			2.51			-1.39			135
Year ended 3-31-2015		15.01		4.68			3			2.50			-1.17			106
Year ended 3-31-2014		16.10		19.87			4			2.58			-1.63			61
Year ended 3-31-2013		15.39		18.22			4			2.78			-0.97			52
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		16.21		5.33			35			2.16	(3)		-0.53	(3)		51
Year ended 3-31-2017		15.39		27.72			33			2.17			-0.99			133
Year ended 3-31-2016		12.64		-5.77			14			2.23			-1.11			135
Year ended 3-31-2015		15.74		5.02			18			2.21			-0.89			106
Year ended 3-31-2014		16.76		20.24			19			2.25			-1.30			61
Year ended 3-31-2013		15.94		18.74			16			2.35			-0.54			52
Class E Shares(11)
Six-month period ended 9-30-2017 (unaudited)		19.38		5.84			—	*		1.19	(3)		0.42	(3)		51
Year ended 3-31-2017		18.32		28.97			—	*		1.21			0.00			133
Year ended 3-31-2016		14.87		-4.80			—	*		1.22			-0.12			135
Year ended 3-31-2015		17.93		6.08			—	*		1.21			0.14			106
Year ended 3-31-2014		18.76		21.56			—	*		1.21			-0.26			61
Year ended 3-31-2013		17.59		20.03			—	*		1.22			0.61			52
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		20.15		5.89			306			1.11	(3)		0.48	(3)		51
Year ended 3-31-2017		19.03		29.05			253			1.10			0.03			133
Year ended 3-31-2016		15.42		-4.71			25			1.12			0.00			135
Year ended 3-31-2015		18.49		6.20			29			1.10			0.26			106
Year ended 3-31-2014		19.29		21.67			26			1.10			-0.15			61
Year ended 3-31-2013		18.03		20.17			19			1.11			0.72			52
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		20.31		5.95			48			0.94	(3)		0.83	(3)		51
Year ended 3-31-2017		19.17		29.25			9			0.95			0.22			133
Year ended 3-31-2016		15.52		-4.52			4			0.96			0.13			135
Year ended 3-31-2015(5)		18.56		8.17			3			0.96	(3)		0.70	(3)		106	(6)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		18.56		5.63			10			1.68	(3)		-0.17	(3)		51
Year ended 3-31-2017		17.58		28.27			6			1.69			-0.51			133
Year ended 3-31-2016		14.33		-5.24			3			1.72			-0.66			135
Year ended 3-31-2015		17.44		5.57			2			1.70			-0.32			106
Year ended 3-31-2014		18.31		20.91			1			1.70			-0.78			61
Year ended 3-31-2013(7)		17.23		13.06			—	*		1.68	(3)		-0.44	(3)		52	(8)
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(9)		18.68		3.95			—	*		1.18	(3)		-0.49	(3)		51	(10)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		19.57		5.73			18			1.36	(3)		0.29	(3)		51
Year ended 3-31-2017		18.51		28.74			22			1.35			-0.20			133
Year ended 3-31-2016		15.03		-4.92			7			1.37			-0.30			135
Year ended 3-31-2015		18.12		5.93			10			1.36			-0.09			106
Year ended 3-31-2014		18.94		21.35			10			1.33			-0.39			61
Year ended 3-31-2013		17.74		19.85			7			1.41			0.05			52

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

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

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

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

(9) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(10) Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

(11) Class is closed to investment.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 183

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SMALL CAP GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Loss(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	17.23	$	(0.08	)	$	1.72		$	1.64		$	—		$	—		$	—
Year ended 3-31-2017		14.81		(0.13	)		3.58			3.45			—			(1.03	)		(1.03	)
Year ended 3-31-2016		18.71		(0.14	)		(1.43	)		(1.57	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		18.51		(0.14	)		1.52			1.38			—			(1.18	)		(1.18	)
Year ended 3-31-2014		16.33		(0.19	)		4.04			3.85			—			(1.67	)		(1.67	)
Year ended 3-31-2013		14.51		(0.14	)		2.35			2.21			—			(0.39	)		(0.39	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited		13.11		(0.12	)		1.31			1.19			—			—			—
Year ended 3-31-2017		11.57		(0.21	)		2.78			2.57			—			(1.03	)		(1.03	)
Year ended 3-31-2016		15.28		(0.23	)		(1.15	)		(1.38	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		15.47		(0.25	)		1.24			0.99			—			(1.18	)		(1.18	)
Year ended 3-31-2014		13.95		(0.30	)		3.42			3.12			—			(1.60	)		(1.60	)
Year ended 3-31-2013		12.57		(0.25	)		2.02			1.77			—			(0.39	)		(0.39	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		14.28		(0.12	)		1.42			1.30			—			—			—
Year ended 3-31-2017		12.50		(0.20	)		3.01			2.81			—			(1.03	)		(1.03	)
Year ended 3-31-2016		16.27		(0.21	)		(1.23	)		(1.44	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		16.35		(0.23	)		1.33			1.10			—			(1.18	)		(1.18	)
Year ended 3-31-2014		14.63		(0.28	)		3.60			3.32			—			(1.60	)		(1.60	)
Year ended 3-31-2013		13.12		(0.21	)		2.11			1.90			—			(0.39	)		(0.39	)
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		17.09		(0.09	)		1.71			1.62			—			—			—
Year ended 3-31-2017		14.70		(0.14	)		3.56			3.42			—			(1.03	)		(1.03	)
Year ended 3-31-2016		18.60		(0.14	)		(1.43	)		(1.57	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		18.43		(0.16	)		1.51			1.35			—			(1.18	)		(1.18	)
Year ended 3-31-2014		16.27		(0.22	)		4.03			3.81			—			(1.65	)		(1.65	)
Year ended 3-31-2013		14.47		(0.15	)		2.34			2.19			—			(0.39	)		(0.39	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		21.96		(0.07	)		2.19			2.12			—			—			—
Year ended 3-31-2017		18.57		(0.10	)		4.52			4.42			—			(1.03	)		(1.03	)
Year ended 3-31-2016		22.77		(0.09	)		(1.77	)		(1.86	)		(0.01	)		(2.33	)		(2.34	)
Year ended 3-31-2015		22.19		(0.09	)		1.85			1.76			—			(1.18	)		(1.18	)
Year ended 3-31-2014		19.26		(0.15	)		4.80			4.65			—			(1.72	)		(1.72	)
Year ended 3-31-2013		16.98		(0.09	)		2.76			2.67			—			(0.39	)		(0.39	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		22.06		(0.06	)		2.21			2.15			—			—			—
Year ended 3-31-2017		18.62		(0.07	)		4.54			4.47			—			(1.03	)		(1.03	)
Year ended 3-31-2016		22.79		(0.06	)		(1.77	)		(1.83	)		(0.01	)		(2.33	)		(2.34	)
Year ended 3-31-2015(6)		20.97		(0.02	)		3.02			3.00			—			(1.18	)		(1.18	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		16.97		(0.11	)		1.69			1.58			—			—			—
Year ended 3-31-2017		14.63		(0.17	)		3.54			3.37			—			(1.03	)		(1.03	)
Year ended 3-31-2016		18.55		(0.17	)		(1.42	)		(1.59	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		18.41		(0.18	)		1.50			1.32			—			(1.18	)		(1.18	)
Year ended 3-31-2014		16.26		(0.23	)		4.02			3.79			—			(1.64	)		(1.64	)
Year ended 3-31-2013		14.48		(0.17	)		2.34			2.17			—			(0.39	)		(0.39	)
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(8)		18.21		(0.03	)		0.69			0.66			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		20.85		(0.10	)		2.09			1.99			—			—			—
Year ended 3-31-2017		17.72		(0.14	)		4.30			4.16			—			(1.03	)		(1.03	)
Year ended 3-31-2016		21.88		(0.13	)		(1.70	)		(1.83	)		—			(2.33	)		(2.33	)
Year ended 3-31-2015		21.42		(0.14	)		1.78			1.64			—			(1.18	)		(1.18	)
Year ended 3-31-2014		18.66		(0.20	)		4.64			4.44			—			(1.68	)		(1.68	)
Year ended 3-31-2013		16.50		(0.13	)		2.68			2.55			—			(0.39	)		(0.39	)

* 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.

    .

184 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	18.87		9.52	%	$	254			1.38	%(4)		-0.95	%(4)		—	%		—	%		20	%
Year ended 3-31-2017		17.23		23.58			236			1.41			-0.81			—			—			53
Year ended 3-31-2016		14.81		-8.91			325			1.44			-0.80			—			—			43
Year ended 3-31-2015		18.71		8.03			384			1.43			-0.80			—			—			43
Year ended 3-31-2014		18.51		24.27			406			1.43			-1.07			—			—			45
Year ended 3-31-2013		16.33		15.70			281			1.49			-0.97			—			—			38
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		14.30		9.08			8			2.22	(4)		-1.79	(4)		—			—			20
Year ended 3-31-2017		13.11		22.55			8			2.24			-1.66			—			—			53
Year ended 3-31-2016		11.57		-9.71			8			2.32			-1.69			—			—			43
Year ended 3-31-2015		15.28		7.07			11			2.31			-1.69			—			—			43
Year ended 3-31-2014		15.47		23.14			13			2.34			-1.99			—			—			45
Year ended 3-31-2013		13.95		14.61			11			2.49			-1.96			—			—			38
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		15.58		9.10			180			2.05	(4)		-1.62	(4)		—			—			20
Year ended 3-31-2017		14.28		22.80			176			2.07			-1.49			—			—			53
Year ended 3-31-2016		12.50		-9.48			166			2.07			-1.43			—			—			43
Year ended 3-31-2015		16.27		7.36			207			2.07			-1.44			—			—			43
Year ended 3-31-2014		16.35		23.43			225			2.08			-1.73			—			—			45
Year ended 3-31-2013		14.63		15.00			189			2.13			-1.61			—			—			38
Class E Shares
Six-month period ended 9-30-2017 (unaudited)		18.71		9.48			9			1.39	(4)		-0.96	(4)		1.63	(4)		-1.20	(4)		20
Year ended 3-31-2017		17.09		23.55			8			1.43			-0.85			1.71			-1.13			53
Year ended 3-31-2016		14.70		-8.96			6			1.49			-0.86			1.73			-1.10			43
Year ended 3-31-2015		18.60		7.90			6			1.56			-0.92			1.79			-1.15			43
Year ended 3-31-2014		18.43		24.13			5			1.56			-1.21			1.87			-1.52			45
Year ended 3-31-2013		16.27		15.61			3			1.56			-1.03			2.06			-1.53			38
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		24.08		9.65			376			1.08	(4)		-0.64	(4)		—			—			20
Year ended 3-31-2017		21.96		24.03			313			1.07			-0.51			—			—			53
Year ended 3-31-2016		18.57		-8.59			169			1.06			-0.43			—			—			43
Year ended 3-31-2015		22.77		8.42			214			1.06			-0.43			—			—			43
Year ended 3-31-2014		22.19		24.78			246			1.06			-0.71			—			—			45
Year ended 3-31-2013		19.26		16.13			176			1.07			-0.54			—			—			38
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		24.21		9.75			110			0.92	(4)		-0.48	(4)		—			—			20
Year ended 3-31-2017		22.06		24.24			69			0.91			-0.34			—			—			53
Year ended 3-31-2016		18.62		-8.46			23			0.91			-0.28			—			—			43
Year ended 3-31-2015(6)		22.79		14.83			22			0.90	(4)		-0.12	(4)		—			—			43	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		18.55		9.31			51			1.67	(4)		-1.23	(4)		—			—			20
Year ended 3-31-2017		16.97		23.32			48			1.66			-1.08			—			—			53
Year ended 3-31-2016		14.63		-9.10			42			1.66			-1.03			—			—			43
Year ended 3-31-2015		18.55		7.74			45			1.66			-1.02			—			—			43
Year ended 3-31-2014		18.41		23.99			42			1.66			-1.30			—			—			45
Year ended 3-31-2013		16.26		15.45			22			1.67			-1.15			—			—			38	(9)
Class T Shares
Six-month period ended 9-30-2017 (unaudited)(8)		18.87		3.62			—	*		1.23	(4)		-0.79	(4)		—			—			20
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		22.84		9.55			134			1.32	(4)		-0.89	(4)		—			—			20
Year ended 3-31-2017		20.85		23.71			135			1.31			-0.71			—			—			53
Year ended 3-31-2016		17.72		-8.80			205			1.31			-0.67			—			—			43
Year ended 3-31-2015		21.88		8.16			262			1.30			-0.68			—			—			43
Year ended 3-31-2014		21.42		24.45			276			1.30			-0.95			—			—			45
Year ended 3-31-2013		18.66		15.87			220			1.31			-0.79			—			—			38

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

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

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

(8) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(9) Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 185

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY TAX-MANAGED EQUITY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	21.00	$	0.00	*	$	2.09		$	2.09		$	—		$	—		$	—
Year ended 3-31-2017		18.68		(0.07	)		2.39			2.32			—			—			—
Year ended 3-31-2016		19.31		(0.07	)		(0.20	)		(0.27	)		—			(0.36	)		(0.36	)
Year ended 3-31-2015		16.84		(0.02	)		2.86			2.84			—			(0.37	)		(0.37	)
Year ended 3-31-2014		14.13		(0.05	)		3.23			3.18			—			(0.47	)		(0.47	)
Year ended 3-31-2013		13.15		0.05			0.99			1.04			(0.06	)		—			(0.06	)
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		20.13		(0.08	)		2.00			1.92			—			—			—
Year ended 3-31-2017		18.03		(0.19	)		2.29			2.10			—			—			—
Year ended 3-31-2016		18.73		(0.20	)		(0.21	)		(0.41	)		—			(0.29	)		(0.29	)
Year ended 3-31-2015		16.45		(0.14	)		2.79			2.65			—			(0.37	)		(0.37	)
Year ended 3-31-2014		13.87		(0.14	)		3.15			3.01			—			(0.43	)		(0.43	)
Year ended 3-31-2013		12.92		(0.03	)		0.99			0.96			(0.01	)		—			(0.01	)
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		20.06		(0.09	)		1.99			1.90			—			—			—
Year ended 3-31-2017		17.98		(0.20	)		2.28			2.08			—			—			—
Year ended 3-31-2016		18.69		(0.21	)		(0.21	)		(0.42	)		—			(0.29	)		(0.29	)
Year ended 3-31-2015		16.42		(0.15	)		2.79			2.64			—			(0.37	)		(0.37	)
Year ended 3-31-2014		13.85		(0.15	)		3.15			3.00			—			(0.43	)		(0.43	)
Year ended 3-31-2013		12.91		(0.03	)		0.97			0.94			—			—			—
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		21.22		0.02			2.11			2.13			—			—			—
Year ended 3-31-2017		18.83		(0.01	)		2.40			2.39			—			—			—
Year ended 3-31-2016		19.47		(0.03	)		(0.21	)		(0.24	)		—			(0.40	)		(0.40	)
Year ended 3-31-2015		16.93		0.02			2.89			2.91			—			(0.37	)		(0.37	)
Year ended 3-31-2014		14.20		0.00			3.23			3.23			—			(0.50	)		(0.50	)
Year ended 3-31-2013		13.27		0.09			0.92			1.01			(0.08	)		—			(0.08	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		22.01		0.00	*		1.35			1.35			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		21.04		0.00	*		2.09			2.09			—			—			—
Year ended 3-31-2017		18.71		(0.06	)		2.39			2.33			—			—			—
Year ended 3-31-2016		19.34		(0.07	)		(0.20	)		(0.27	)		—			(0.36	)		(0.36	)
Year ended 3-31-2015		16.86		(0.03	)		2.88			2.85			—			(0.37	)		(0.37	)
Year ended 3-31-2014		14.15		(0.04	)		3.23			3.19			—			(0.48	)		(0.48	)
Year ended 3-31-2013		13.16		0.05			1.00			1.05			(0.06	)		—			(0.06	)

* 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.

    .

186 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 (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	23.09		9.95	%	$	43			1.21	%(4)		-0.04	%(4)		—	%		—	%		31	%
Year ended 3-31-2017		21.00		12.42			38			1.20			-0.35			—			—			46
Year ended 3-31-2016		18.68		-1.51			107			1.22			-0.35			—			—			21
Year ended 3-31-2015		19.31		17.00			71			1.29			-0.13			—			—			36
Year ended 3-31-2014		16.84		22.65			40			1.43			-0.30			—			—			32
Year ended 3-31-2013		14.13		7.91			24			1.14			0.34			1.63			-0.15			26
Class B Shares(5)
Six-month period ended 9-30-2017 (unaudited)		22.05		9.54			2			1.91	(4)		-0.74	(4)		—			—			31
Year ended 3-31-2017		20.13		11.65			1			1.91			-1.03			—			—			46
Year ended 3-31-2016		18.03		-2.24			1			1.92			-1.06			—			—			21
Year ended 3-31-2015		18.73		16.25			1			1.95			-0.82			—			—			36
Year ended 3-31-2014		16.45		21.80			1			2.06			-0.92			—			—			32
Year ended 3-31-2013		13.87		7.41			1			1.69			-0.22			2.19			-0.72			26
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		21.96		9.52			6			1.99	(4)		-0.83	(4)		—			—			31
Year ended 3-31-2017		20.06		11.57			6			1.96			-1.08			—			—			46
Year ended 3-31-2016		17.98		-2.30			6			2.01			-1.13			—			—			21
Year ended 3-31-2015		18.69		16.21			2			2.01			-0.86			—			—			36
Year ended 3-31-2014		16.42		21.76			2			2.09			-0.96			—			—			32
Year ended 3-31-2013		13.85		7.28			1			1.76			-0.24			2.26			-0.74			26
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		23.35		10.04			78			1.01	(4)		0.16	(4)		—			—			31
Year ended 3-31-2017		21.22		12.69			72			0.96			-0.04			—			—			46
Year ended 3-31-2016		18.83		-1.32			5			0.99			-0.14			—			—			21
Year ended 3-31-2015		19.47		17.33			4			1.04			0.10			—			—			36
Year ended 3-31-2014		16.93		22.91			1			1.15			-0.02			—			—			32
Year ended 3-31-2013		14.20		7.70			1			0.80			0.68			1.30			0.18			26
Class N Shares
Six-month period ended 9-30-2017 (unaudited)(6)		23.36		6.13			—	*		0.85	(4)		0.02	(4)		—			—			31	(7)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		23.13		9.93			1			1.21	(4)		-0.04	(4)		1.24	(4)		-0.07	(4)		31
Year ended 3-31-2017		21.04		12.45			1			1.20			-0.31			1.21			-0.32			46
Year ended 3-31-2016		18.71		-1.50			1			1.22			-0.38			1.24			-0.40			21
Year ended 3-31-2015		19.34		17.04			1			1.29			-0.16			—			—			36
Year ended 3-31-2014		16.86		22.56			1			1.41			-0.27			—			—			32
Year ended 3-31-2013		14.15		8.12			1			1.02			0.39			1.51			-0.10			26

(4) Annualized.

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

(6) For the period from July 5, 2017 (commencement of operations of the class) through September 30, 2017.

(7) Portfolio Turnover is calculated at the fund level. Percentage indicated was calculated for the period ended September 30, 2017.

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 187

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY VALUE FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	22.69	$	0.31		$	0.42		$	0.73		$	(0.04	)	$	—		$	(0.04	)
Year ended 3-31-2017		19.72		0.20			3.25			3.45			(0.33	)		(0.15	)		(0.48	)
Year ended 3-31-2016		23.40		0.14			(1.14	)		(1.00	)		(0.03	)		(2.65	)		(2.68	)
Year ended 3-31-2015		23.82		0.12			1.25			1.37			(0.06	)		(1.73	)		(1.79	)
Year ended 3-31-2014		20.30		0.07			4.42			4.49			(0.04	)		(0.93	)		(0.97	)
Year ended 3-31-2013		17.57		0.15			2.73			2.88			(0.15	)		—	*		(0.15	)
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		21.12		0.16			0.42			0.58			—			—			—
Year ended 3-31-2017		18.39		0.00	*		3.02			3.02			(0.14	)		(0.15	)		(0.29	)
Year ended 3-31-2016		22.04		(0.08	)		(1.06	)		(1.14	)		—			(2.51	)		(2.51	)
Year ended 3-31-2015		22.53		(0.10	)		1.19			1.09			—			(1.58	)		(1.58	)
Year ended 3-31-2014		19.28		(0.12	)		4.19			4.07			—			(0.82	)		(0.82	)
Year ended 3-31-2013		16.72		(0.03	)		2.59			2.56			—			—	*		—	*
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		21.92		0.22			0.41			0.63			—			—			—
Year ended 3-31-2017		19.07		0.08			3.13			3.21			(0.21	)		(0.15	)		(0.36	)
Year ended 3-31-2016		22.73		(0.01	)		(1.11	)		(1.12	)		—			(2.54	)		(2.54	)
Year ended 3-31-2015		23.18		(0.05	)		1.22			1.17			—			(1.62	)		(1.62	)
Year ended 3-31-2014		19.80		(0.09	)		4.31			4.22			—			(0.84	)		(0.84	)
Year ended 3-31-2013		17.16		0.02			2.67			2.69			(0.05	)		—	*		(0.05	)
Class E Shares(5)
Six-month period ended 9-30-2017 (unaudited)		22.79		0.34			0.42			0.76			(0.08	)		—			(0.08	)
Year ended 3-31-2017		19.81		0.27			3.24			3.51			(0.38	)		(0.15	)		(0.53	)
Year ended 3-31-2016		23.49		0.19			(1.14	)		(0.95	)		(0.04	)		(2.69	)		(2.73	)
Year ended 3-31-2015		23.90		0.17			1.27			1.44			(0.10	)		(1.75	)		(1.85	)
Year ended 3-31-2014		20.36		0.11			4.44			4.55			(0.09	)		(0.92	)		(1.01	)
Year ended 3-31-2013		17.61		0.20			2.74			2.94			(0.19	)		—	*		(0.19	)
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		22.80		0.35			0.42			0.77			(0.10	)		—			(0.10	)
Year ended 3-31-2017		19.81		0.31			3.23			3.54			(0.40	)		(0.15	)		(0.55	)
Year ended 3-31-2016		23.50		0.20			(1.13	)		(0.93	)		(0.05	)		(2.71	)		(2.76	)
Year ended 3-31-2015		23.90		0.19			1.28			1.47			(0.11	)		(1.76	)		(1.87	)
Year ended 3-31-2014		20.36		0.14			4.44			4.58			(0.11	)		(0.93	)		(1.04	)
Year ended 3-31-2013		17.61		0.22			2.74			2.96			(0.21	)		—	*		(0.21	)
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		22.86		0.42			0.37			0.79			(0.12	)		—			(0.12	)
Year ended 3-31-2017		19.87		0.33			3.25			3.58			(0.44	)		(0.15	)		(0.59	)
Year ended 3-31-2016		23.56		0.25			(1.15	)		(0.90	)		(0.06	)		(2.73	)		(2.79	)
Year ended 3-31-2015(6)		24.96		0.18			0.25			0.43			(0.10	)		(1.73	)		(1.83	)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		22.66		0.28			0.42			0.70			(0.01	)		—			(0.01	)
Year ended 3-31-2017		19.70		0.17			3.23			3.40			(0.29	)		(0.15	)		(0.44	)
Year ended 3-31-2016		23.37		0.08			(1.13	)		(1.05	)		(0.01	)		(2.61	)		(2.62	)
Year ended 3-31-2015		23.79		0.05			1.26			1.31			(0.01	)		(1.72	)		(1.73	)
Year ended 3-31-2014		20.28		0.01			4.41			4.42			(0.01	)		(0.90	)		(0.91	)
Year ended 3-31-2013(8)		18.17		0.04			2.07			2.11			—			—			—
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		22.73		0.30			0.43			0.73			(0.04	)		—			(0.04	)
Year ended 3-31-2017		19.77		0.26			3.21			3.47			(0.36	)		(0.15	)		(0.51	)
Year ended 3-31-2016		23.45		0.15			(1.13	)		(0.98	)		(0.03	)		(2.67	)		(2.70	)
Year ended 3-31-2015		23.86		0.14			1.26			1.40			(0.07	)		(1.74	)		(1.81	)
Year ended 3-31-2014		20.33		0.09			4.43			4.52			(0.06	)		(0.93	)		(0.99	)
Year ended 3-31-2013		17.59		0.17			2.75			2.92			(0.18	)		—	*		(0.18	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

(3) Annualized.

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

    .

188 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			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2017 (unaudited)	$	23.38		3.21	%	$	96			1.30	%(3)		2.71	%(3)		31	%
Year ended 3-31-2017		22.69		17.76			103			1.33			0.99			53
Year ended 3-31-2016		19.72		-4.60			247			1.30			0.61			55
Year ended 3-31-2015		23.40		5.71			295			1.27			0.48			82
Year ended 3-31-2014		23.82		22.44			248			1.31			0.30			58
Year ended 3-31-2013		20.30		16.59			156			1.43			0.82			57
Class B Shares(4)
Six-month period ended 9-30-2017 (unaudited)		21.70		2.75			2			2.21	(3)		1.54	(3)		31
Year ended 3-31-2017		21.12		16.57			3			2.36			—			53
Year ended 3-31-2016		18.39		-5.54			3			2.27			-0.38			55
Year ended 3-31-2015		22.04		4.80			4			2.18			-0.43			82
Year ended 3-31-2014		22.53		21.35			6			2.17			-0.57			58
Year ended 3-31-2013		19.28		15.40			5			2.43			-0.16			57
Class C Shares
Six-month period ended 9-30-2017 (unaudited)		22.55		2.87			18			1.95	(3)		2.00	(3)		31
Year ended 3-31-2017		21.92		17.02			20			1.97			0.39			53
Year ended 3-31-2016		19.07		-5.25			18			1.98			-0.06			55
Year ended 3-31-2015		22.73		5.00			22			1.97			-0.22			82
Year ended 3-31-2014		23.18		21.64			14			2.01			-0.41			58
Year ended 3-31-2013		19.80		15.77			9			2.13			0.12			57
Class E Shares(5)
Six-month period ended 9-30-2017 (unaudited)		23.47		3.33			—	*		1.06	(3)		2.94	(3)		31
Year ended 3-31-2017		22.79		18.03			—	*		1.08			1.29			53
Year ended 3-31-2016		19.81		-4.34			—	*		1.06			0.86			55
Year ended 3-31-2015		23.49		5.98			—	*		1.05			0.70			82
Year ended 3-31-2014		23.90		22.73			—	*		1.09			0.51			58
Year ended 3-31-2013		20.36		16.93			—	*		1.14			1.11			57
Class I Shares
Six-month period ended 9-30-2017 (unaudited)		23.47		3.37			179			0.97	(3)		3.04	(3)		31
Year ended 3-31-2017		22.80		18.18			186			0.97			1.44			53
Year ended 3-31-2016		19.81		-4.28			7			0.97			0.90			55
Year ended 3-31-2015		23.50		6.13			15			0.94			0.79			82
Year ended 3-31-2014		23.90		22.85			5			0.99			0.63			58
Year ended 3-31-2013		20.36		17.03			4			1.02			1.21			57
Class N Shares
Six-month period ended 9-30-2017 (unaudited)		23.53		3.48			163			0.80	(3)		3.63	(3)		31
Year ended 3-31-2017		22.86		18.32			9			0.82			1.55			53
Year ended 3-31-2016		19.87		-4.12			2			0.81			1.14			55
Year ended 3-31-2015(6)		23.56		1.72			1			0.79	(3)		1.11	(3)		82	(7)
Class R Shares
Six-month period ended 9-30-2017 (unaudited)		23.35		3.11			—	*		1.57	(3)		2.44	(3)		31
Year ended 3-31-2017		22.66		17.45			—	*		1.57			0.80			53
Year ended 3-31-2016		19.70		-4.82			—	*		1.56			0.36			55
Year ended 3-31-2015		23.37		5.45			—	*		1.54			0.21			82
Year ended 3-31-2014		23.79		22.13			1			1.57			0.03			58
Year ended 3-31-2013(8)		20.28		11.61			—	*		1.55	(3)		0.73	(3)		57	(9)
Class Y Shares
Six-month period ended 9-30-2017 (unaudited)		23.42		3.21			1			1.28	(3)		2.62	(3)		31
Year ended 3-31-2017		22.73		17.81			1			1.21			1.24			53
Year ended 3-31-2016		19.77		-4.51			2			1.22			0.65			55
Year ended 3-31-2015		23.45		5.84			3			1.20			0.58			82
Year ended 3-31-2014		23.86		22.56			2			1.22			0.40			58
Year ended 3-31-2013		20.33		16.78			2			1.27			0.97			57

(5) Class share is closed to investment.

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

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

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

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

See Accompanying Notes to Financial Statements.

2017 SEMIANNUAL REPORT 189

NOTES TO FINANCIAL STATMENTS IVY FUNDS

SEPTEMBER 30, 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 Advantus Bond Fund, Ivy Core Equity Fund, Ivy Cundill Global Value Fund, Ivy Dividend Opportunities Fund, Ivy Emerging Markets Equity Fund, Ivy European Opportunities Fund, Ivy Global Bond Fund, Ivy Global Equity Income Fund, Ivy Global Growth Fund, Ivy Global Income Allocation Fund, Ivy Government Money Market Fund, Ivy High Income Fund, Ivy International Core Equity Fund, Ivy Large Cap Growth Fund, Ivy Limited-Term Bond Fund, Ivy Managed International Opportunities Fund, Ivy Micro Cap Growth Fund, Ivy Mid Cap Growth Fund, Ivy Mid Cap Income Opportunities Fund, Ivy Municipal Bond Fund, Ivy Municipal High Income Fund, Ivy Small Cap Core Fund, Ivy Small Cap Growth Fund, Ivy Tax-Managed Equity Fund and Ivy Value Fund (each, a “Fund”) are 25 series of the Trust and are the only series of the Trust included in these financial statements. The investment objective(s), policies and risk factors of each Fund are described more fully in the Funds’ Prospectus and Statement of Additional Information (“SAI”). Each Fund’s investment manager is Ivy Investment Management Company (“IICO” or the “Manager”).

Each Fund offers Class A and Class C shares. Each Fund (excluding Ivy Mid Cap Income Opportunities Fund) offers Class B shares. The Funds’ Class B shares are not available for purchase by new and existing investors. Class B shares will continue to be available for dividend reinvestment and exchanges from Class B shares of another fund within Ivy Funds. Class C shares are not available for direct investment in the Ivy Government Money Market Fund. Class C shares of Ivy Government Money Market Fund will continue to be available for dividend reinvestment and exchanges from Class C shares of another fund within Ivy Funds. Certain Funds may also offer Class E, Class I, Class N, Class R, Class T and/or Class Y shares. Class E shares are closed for all investments in the Ivy Emerging Markets Equity Fund, Ivy European Opportunities Fund, Ivy Global Growth Fund, Ivy Managed International Opportunities Fund, Ivy Small Cap Core Fund and Ivy Value Fund. Class A, Class E and Class T shares are sold at their offering price, which is normally net asset value (“NAV”) plus a front-end sales charge. For Class A shares, a 1% contingent deferred sales charge (“CDSC”) is only imposed on shares purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. Class B and Class C shares are sold without a front-end sales charge, but may be subject to a CDSC. Class I, Class 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, B, C, E, R, T and Y have a distribution and service plan. Class I shares and Class N shares are not included in the plan. Class B shares will automatically convert to Class A shares 96 months after the date of purchase.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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

Foreign Currency Translation. Each Fund’s accounting records are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars daily, using foreign exchange rates obtained from an independent pricing service approved by the Board of Trustees of the Trust (the “Board”). Purchases and sales of investment securities and accruals of income and expenses are translated at the rate of exchange prevailing on the date of the transaction. For assets and liabilities other than investments in securities, net realized and unrealized gains and losses from foreign currency translation arise from changes in currency exchange rates. Each Fund combines fluctuations from currency exchange rates and fluctuations in value when computing net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments. Foreign exchange rates are typically valued as of the close of the New York Stock Exchange (“NYSE”), normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

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

190 SEMIANNUAL REPORT 2017

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 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.

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

2017 SEMIANNUAL REPORT 191

based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity.

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

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.

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

192 SEMIANNUAL REPORT 2017

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. The Board of Trustees of the Waddell & Reed Advisors Funds (“WRA Funds”) approved a Reorganization Plan, in which each WRA Fund has been reorganized into a corresponding fund within Ivy Funds, a trust whose investment advisor is IICO, an affiliate of Waddell & Reed Investment Management Company (“WRIMCO”). This means that the corresponding fund within Ivy Funds received all of the assets and liabilities of the corresponding WRA Fund in exchange for shares of the Ivy Fund. Each WRA Fund, in turn, distributed those Ivy Fund shares to its shareholders in liquidation and shareholders of a WRA Fund became shareholders of the corresponding Ivy Fund. Under the Reorganization Plan, each WRA Fund was reorganized into the Ivy Fund listed directly opposite such WRA Fund in the table below.

WRA Funds	Ivy Funds
WRA Bond Fund	Ivy Bond Fund
WRA Core Investment Fund	Ivy Core Equity Fund
WRA Dividend Opportunities Fund	Ivy Dividend Opportunities Fund
WRA Global Bond Fund	Ivy Global Bond Fund
WRA Government Securities Fund	Ivy Government Securities Fund
WRA Municipal Bond Fund	Ivy Municipal Bond Fund
WRA Tax-Managed Equity Fund	Ivy Tax-Managed Equity Fund
WRA Value Fund	Ivy Value Fund

In connection with the Reorganization, the Ivy Funds organized the Ivy Bond Fund and Ivy Government Securities Fund (the “Shell Ivy Funds”) which had no assets or liabilities. Each Shell Ivy Fund has been created in connection with the Reorganization Plan to continue the business of its corresponding WRA Fund and has identical investment objectives, principal investment strategies and fundamental investment restrictions as its respective corresponding WRA Fund. The Shell Ivy Funds commenced operations on the date of the Reorganization. The Reorganization took place on October 16, 2017.

On November 14, 2017, the Board of Trustees of the WRA Funds adopted a resolution in which the WRA Funds will be reorganized into a corresponding series of the Ivy Funds, an affiliated investment company, as shown in the table below. This means that the corresponding fund within Ivy Funds will receive all of the assets and liabilities of the corresponding WRA Fund in exchange for shares of the Ivy Fund. Each WRA Fund, in turn, will distribute those Ivy Fund shares to its shareholders in liquidation and shareholders of a WRA Fund will become shareholders of the corresponding Ivy Fund. Under the Reorganization Plan, each WRA Fund will be reorganized into the Ivy Fund listed directly opposite such WRA Fund in the table below.

WRA Funds	Ivy Funds
WRA Global Growth Fund	Ivy Global Growth Fund
WRA High Income Fund	Ivy High Income Fund
WRA Municipal High Income Fund	Ivy Municipal High Income Fund
WRA New Concepts Fund	Ivy Mid Cap Growth Fund
WRA Small Cap Growth Fund	Ivy Small Cap Growth Fund
WRA Vanguard Fund	Ivy Large Cap Growth Fund

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.

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

Investments in Ivy Government Money Market Fund are valued on the basis of amortized cost (which approximates value), whereby a portfolio security is valued at its cost initially, and thereafter valued to reflect a constant amortization to maturity of any discount or premium. Short-term securities with maturities of 60 days or less held in all Funds (with the exception of Ivy Government Money Market Fund) are valued based on quotes that are obtained from an independent pricing service approved by the Board as described in the preceding paragraph above.

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

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

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

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

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

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

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

Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

An individual investment’s fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation.

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The three-tier hierarchy of inputs is summarized as follows:

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

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

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

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

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

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

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

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

Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. OTC derivative contracts include forward foreign currency contracts, swap agreements, and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices. Depending on the product and the terms of the transaction, the fair value of the OTC derivative products are modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgments and the pricing inputs are observed from actively quoted markets, as is the case with interest rate swap and option contracts. OTC derivative products valued using pricing models with significant observable inputs are categorized within Level 2 of the fair value hierarchy.

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

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

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

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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.

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.

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

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

196 SEMIANNUAL REPORT 2017

on a schedule following the Schedule of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates provided by an independent pricing service determined at the close of the NYSE as provided by a bank, dealer or independent pricing service. The resulting unrealized appreciation and depreciation is reported on the Statement of Assets and Liabilities as a receivable or payable and on the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) on the Statement of Operations.

Risks to a Fund related to the use of such contracts include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, a Fund’s maximum loss will consist of the aggregate unrealized gain on appreciated contracts that is not collateralized.

Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Bond Fund, Ivy Global Equity Income Fund, Ivy Global Income Allocation Fund, Ivy High Income Fund and Ivy International Core Equity Fund enter into forward foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from foreign currencies (foreign currency exchange rate risk).

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

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

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

Ivy Advantus Bond Fund, Ivy Emerging Markets Equity Fund, Ivy Municipal Bond Fund, Ivy Municipal High Income Fund and Ivy Value 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 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 Mid Cap Growth Fund, Ivy Small Cap Growth Fund and Ivy Value Fund purchase and write call and put options to increase or decrease hedging exposure to underlying instruments (which include credit risk, equity risk, foreign currency exchange rate risk, event risk and/or interest rate risk), increase exposure to various equity markets or certain sectors, gain exposure to or facilitate trading in certain securities and/or, in the case of options written, to generate returns from options premiums.

2017 SEMIANNUAL REPORT 197

Swap Agreements. Certain Funds may invest in swap agreements. Swaps are marked to market daily and changes in value are recorded as unrealized appreciation (depreciation) on the Statement of Operations. Payments received or made by the Fund are recorded as realized gain or loss on the Statement of Operations. Any upfront premiums paid are recorded as assets and any upfront fees received are recorded as liabilities and are shown as swap premiums paid and swap premiums received, respectively, if any, on the Statement of Assets and Liabilities and amortized over the term of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as realized gain or loss on the Statement of Operations.

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

Ivy Emerging Markets Equity Fund, Ivy Small Cap Growth Fund and Ivy Value Fund enter into total return swaps to hedge exposure to a security or market.

The creditworthiness of the counterparty with which a Fund enters into a swap agreement is monitored by IICO. If a firm’s creditworthiness declines, the value of the agreement would likely decline, potentially resulting in losses. If a default occurs by the counterparty to such a transaction, the Fund will have contractual remedies pursuant to the agreement related to the transaction. The maximum loss a Fund may incur consists of the aggregate unrealized gain on appreciated contracts that is not collateralized.

Collateral and rights of offset. A Fund may mitigate credit risk with respect to OTC derivative counterparties through credit support annexes (“CSA”) included with an International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreement which is the standard contract governing most derivative transactions between the Fund and each of its counterparties. The CSA allows the Fund and its counterparty to offset certain derivative financial instruments’ payables and/or receivables against each other with collateral, which is generally held by the Fund’s custodian or broker. The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts specified in the CSA. To the extent amounts due to the Fund from its counterparties are not fully collateralized contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. See Note 2 “Segregation and Collateralization” for additional information with respect to collateral practices.

Offsetting of Assets and Liabilities. The following tables present financial instruments that are either (1) offset or (2) subject to an enforceable master netting arrangement or similar agreement as of September 30, 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 Cundill Global Value Fund
Unrealized appreciation on forward foreign currency contracts(1)	$	251	$	—	$	251	$	—		$	(251	)	$	—		$	—
Ivy Global Equity Income Fund
Unrealized appreciation on forward foreign currency contracts	$	249	$	—	$	249	$	(249	)	$	—		$	—		$	—
Ivy Global Income Allocation Fund
Unrealized appreciation on forward foreign currency contracts	$	33	$	—	$	33	$	(33	)	$	—		$	—		$	—
Ivy High Income Fund
Unrealized appreciation on forward foreign currency contracts(1)	$	581	$	—	$	581	$	(210	)	$	—		$	(371	)	$	—

198 SEMIANNUAL REPORT 2017

							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 International Core Equity Fund
Unrealized appreciation on forward foreign currency contracts	$	342	$	—	$	342	$	(342	)	$	—		$	—	$	—
Ivy Mid Cap Growth Fund
Investments in unaffiliated securities at value*	$	2,244	$	—	$	2,244	$	(49	)	$	—		$	—	$	2,195
Ivy Small Cap Growth Fund
Swap agreements, at value	$	632	$	—	$	632	$	—		$	(422	)	$	—	$	210
Ivy Value Fund
Swap agreements, at value	$	142	$	—	$	142	$	—		$	—		$	—	$	142

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

⁽¹⁾  Amounts include forward contracts that have an offset to an open and close contract, but have not settled. These amounts are included on the Statement of Assets and Liabilities line item for Investment securities sold receivable.

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 European Opportunities Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	781	$	—	$	781	$	—		$	—		$	(781	)	$	—
Ivy Global Bond Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	79	$	—	$	79	$	—		$	—		$	—		$	79
Ivy Global Equity Income Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	1,571	$	—	$	1,571	$	(249	)	$	(1,322	)	$	—		$	—
Ivy Global Income Allocation Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	580	$	—	$	580	$	(33	)	$	(427	)	$	—		$	120
Ivy High Income Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	342	$	—	$	342	$	(210	)	$	—		$	(132	)	$	—

2017 SEMIANNUAL REPORT 199

							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 International Core Equity Fund
Unrealized depreciation on forward foreign currency contracts	$	1,444	$	—	$	1,444	$	(342	)	$	(1,102	)	$	—	$	—
Ivy Mid Cap Growth Fund
Written options at value	$	49	$	—	$	49	$	(49	)	$	—		$	—	$	—

⁽¹⁾  Amounts include forward contracts that have an offset to an open and close contract, but have not settled. These amounts are included on the Statement of Assets and Liabilities line item for Investment securities purchased payable.

Additional Disclosure Related to Derivative Instruments

Fair values of derivative instruments as of September 30, 2017:

		Assets			Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value		Statement of Assets & Liabilities Location	Value
Ivy Advantus Bond Fund	Interest rate	Unrealized appreciation on futures contracts*	$	328	Unrealized depreciation on futures contracts*	$	337
Ivy Cundill Global Value Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		245			—
Ivy European Opportunities Fund	Foreign currency			—	Unrealized depreciation on forward foreign currency contracts		465
Ivy Global Equity Income Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		249	Unrealized depreciation on forward foreign currency contracts		546
Ivy Global Income Allocation Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		33	Unrealized depreciation on forward foreign currency contracts		444
Ivy High Income Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		23	Unrealized depreciation on forward foreign currency contracts		154
Ivy International Core Equity Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		342	Unrealized depreciation on forward foreign currency contracts		1,444
Ivy Mid Cap Growth Fund	Equity	Investments in unaffiliated securities at value**		3,546	Written options at value		966
Ivy Municipal Bond Fund	Interest rate	Unrealized appreciation on futures contracts*		81			—
Ivy Municipal High Income Fund	Interest rate	Unrealized appreciation on futures contracts*		457			—
Ivy Small Cap Growth Fund	Equity	Swap agreements, at value		632			—
Ivy Value Fund	Equity	Swap agreements, at value		142	Written options at value		71

* The value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected on the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable (payable) as of period ended September 30, 2017.

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

200 SEMIANNUAL REPORT 2017

Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 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 Advantus Bond Fund	Interest rate	$	—		$	—	$	(143	)	$	—		$	—		$	(143	)
Ivy Cundill Global Value Fund	Foreign currency		—			—		—			—			(676	)		(676	)
Ivy Emerging Markets Equity Fund	Equity		—			232		56			—			—			288
Ivy European Opportunities Fund	Foreign currency		—			—		—			—			(693	)		(693	)
Ivy Global Bond Fund	Foreign currency		—			—		—			—			(168	)		(168	)
Ivy Global Equity Income Fund	Foreign currency		—			—		—			—			(2,378	)		(2,378	)
Ivy Global Income Allocation Fund	Foreign currency		—			—		—			—			(3,450	)		(3,450	)
Ivy High Income Fund	Foreign currency		—			—		—			—			(2,652	)		(2,652	)
Ivy International Core Equity Fund	Foreign currency		—			—		—			—			7,696			7,696
Ivy Mid Cap Growth Fund	Equity		544			—		—			(150	)		—			394
Ivy Municipal Bond Fund	Interest rate		—			—		(237	)		—			—			(237	)
Ivy Municipal High Income Fund	Interest rate		—			—		(1,395	)		—			—			(1,395	)
Ivy Small Cap Growth Fund	Equity		(455	)		5,000		—			(240	)		—			4,305
Ivy Value Fund	Equity		—			—		746			68			—			814

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

Change in unrealized appreciation (depreciation) on derivatives recognized on the Statement of Operations for the period ended September 30, 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 Advantus Bond Fund	Interest rate	$	—	$	—	$	31	$	—		$	—		$	31
Ivy Cundill Global Value Fund	Foreign currency		—		—		—		—			377			377
Ivy European Opportunities Fund	Foreign currency		—		—		—		—			(588	)		(588	)
Ivy Global Bond Fund	Foreign currency		—		—		—		—			29			29
Ivy Global Equity Income Fund	Foreign currency		—		—		—		—			(219	)		(219	)
Ivy Global Income Allocation Fund	Foreign currency		—		—		—		—			(563	)		(563	)
Ivy High Income Fund	Foreign currency		—		—		—		—			(233	)		(233	)
Ivy International Core Equity Fund	Foreign currency		—		—		—		—			692			692
Ivy Mid Cap Growth Fund	Equity		65		—		—		(164	)		—			(99	)
Ivy Municipal Bond Fund	Interest rate		—		—		104		—			—			104
Ivy Municipal High Income Fund	Interest rate		—		—		457		—			—			457
Ivy Small Cap Growth Fund	Equity		—		1,220		—		—			—			1,220
Ivy Value Fund	Equity		—		142		—		51			—			193

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

During the period ended September 30, 2017, the average derivative volume was as follows:

Fund	Forward foreign currency contracts(1)			Long futures contracts(2)			Short futures contracts(2)				Swap agreements(3)			Purchased options(2)			Written options(2)
Ivy Advantus Bond Fund		$	—		$	46,500		$	(29,883	)		$	—		$	—		$	—
Ivy Cundill Global Value Fund			117			—			—				—			—			—
Ivy European Opportunities Fund			166			—			—				—			—			—
Ivy Global Bond Fund			19			—			—				—			—			—
Ivy Global Equity Income Fund.			241			—			—				—			—			—

2017 SEMIANNUAL REPORT 201

Fund	Forward foreign currency contracts(1)			Long futures contracts(2)			Short futures contracts(2)				Swap agreements(3)			Purchased options(2)			Written options(2)
Ivy Global Income Allocation Fund		$	460		$	—		$	—			$	—		$	—		$	—
Ivy High Income Fund			338			—			—				—			—			—
Ivy International Core Equity Fund			416			—			—				—			—			—
Ivy Mid Cap Growth Fund			—			—			—				—			508			264
Ivy Municipal Bond Fund			—			—			(4,599	)			—			—			—
Ivy Municipal High Income Fund			—			—			(32,819	)			—			—			—
Ivy Small Cap Growth Fund			—			—			—				30,768			—			—
Ivy Value Fund			—			2,055			—				3,786			—			105

(1) Average absolute value of unrealized appreciation/depreciation during the period.

(2) Average value outstanding during the period.

(3) Average notional amount outstanding during the period.

5. WRITTEN OPTION ACTIVITY ($ amounts and notional amounts in thousands)

Transactions in written options were as follows:

Fund	Outstanding at 3-31-17		Options written		Options closed			Options exercised			Options expired			Outstanding at 9-30-17
Ivy Mid Cap Growth Fund
Number of Contracts		N/A		24,644		(11,833	)		(4,739	)		(5,289	)		2,783
Notional Amount		N/A		2,464		(1,183	)		(474	)		(529	)		278
Premium Received		N/A	$	1,778	$	(572	)	$	(213	)	$	(191	)	$	802
Ivy Small Cap Growth Fund
Number of Contracts		N/A		4,554		(4,554	)		—			—			N/A
Notional Amount		N/A		455		(455	)		—			—			N/A
Premium Received		N/A	$	364	$	(364	)	$	—		$	—			N/A
Ivy Value Fund
Number of Contracts		1,261		6,894		(3,405	)		(2,532	)		(1,440	)		778
Notional Amount		126		689		(340	)		(253	)		(144	)		78
Premium Received	$	82	$	651	$	(432	)	$	(172	)	$	(71	)	$	58

6. BASIS FOR CONSOLIDATION OF THE IVY EMERGING MARKETS EQUITY FUND

Ivy EME, Ltd. (the “Subsidiary”), a Cayman Islands exempted company, was incorporated as a wholly owned subsidiary acting as an investment vehicle for the Ivy Emerging Markets Equity Fund (referred to as “the Fund” in this subsection). The Subsidiary acts as an investment vehicle for the Fund, in order to effect certain investments for the Fund consistent with the Fund’s investment objectives and policies as specified in its prospectus and SAI. The Fund’s investment portfolio has been consolidated and includes the portfolio holdings of the Fund and its Subsidiary. The consolidated financial statements include the accounts of the Fund and its Subsidiary. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between the Fund and its Subsidiary comprising the entire issued share capital of the Subsidiary with the intent that the Fund will remain the sole shareholder and retain all rights. Under the Articles of Association, shares issued by the Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary.

See the table below for details regarding the structure, incorporation and relationship as of September 30, 2017 of the Subsidiary to the Fund (amounts in thousands).

Subsidiary	Date of Incorporation		Subscription Agreement		Fund Net Assets		Subsidiary Net Assets		Percentage of Fund Net Assets
Ivy EME, Ltd.		1-31-13		4-10-13	$	1,863,670	$	346		0.02	%

202 SEMIANNUAL REPORT 2017

7. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS ($ amounts in thousands unless indicated otherwise)

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

Fund (M – Millions)	$0 to $250M			$250 to $500M			$500 to $1,000M			$1,000 to $1,500M			$1,500 to $2,000M			$2,000 to $3,000M			$3,000 to $5,000M			$5,000 to $6,000M			$6,000 to $10,000M			$10,000 to $15,000M			$15,000 to $20,000M			Over $20,000M
Ivy Advantus Bond Fund		0.525	%		0.525	%		0.500	%		0.450	%		0.400	%		0.400	%		0.400	%		0.395	%		0.395	%		0.390	%		0.390	%		0.390	%
Ivy Core Equity Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.525			0.500			0.490			0.490			0.490
Ivy Cundill Global Value Fund		1.000			1.000			0.850			0.830			0.830			0.800			0.760			0.730			0.730			0.700			0.700			0.700
Ivy Dividend Opportunities Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.540			0.540			0.530			0.530			0.530
Ivy Emerging Markets Equity Fund		1.000			1.000			0.850			0.830			0.830			0.800			0.760			0.755			0.755			0.750			0.750			0.750
Ivy European Opportunities Fund		0.900			0.850			0.750			0.750			0.750			0.740			0.740			0.720			0.720			0.710			0.710			0.710
Ivy Global Bond Fund		0.625			0.625			0.600			0.550			0.500			0.500			0.500			0.490			0.490			0.480			0.480			0.480
Ivy Global Equity Income Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.545			0.545			0.540			0.540			0.540
Ivy Global Growth Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.700			0.695			0.695			0.690			0.690			0.690
Ivy Global Income Allocation Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.545			0.545			0.540			0.540			0.540
Ivy Government Money Market Fund		0.350			0.350			0.350			0.300			0.300			0.300			0.300			0.300			0.300			0.300			0.300			0.300
Ivy High Income Fund		0.625			0.625			0.600			0.550			0.500			0.500			0.500			0.500			0.500			0.490			0.490			0.480
Ivy International Core Equity Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.700			0.690			0.690			0.680			0.680			0.680
Ivy Large Cap Growth Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.545			0.545			0.540			0.540			0.540

2017 SEMIANNUAL REPORT 203

Fund (M – Millions)	$0 to $250M			$250 to $500M			$500 to $1,000M			$1,000 to $1,500M			$1,500 to $2,000M			$2,000 to $3,000M			$3,000 to $5,000M			$5,000 to $6,000M			$6,000 to $10,000M			$10,000 to $15,000M			$15,000 to $20,000M			Over $20,000M
Ivy Limited-Term Bond Fund		0.500	%		0.500	%		0.450	%		0.400	%		0.350	%		0.350	%		0.350	%		0.340	%		0.340	%		0.330	%		0.330	%		0.330	%
Ivy Managed International Opportunities Fund		0.050			0.050			0.050			0.050			0.050			0.050			0.050			0.050			0.050			0.050			0.050			0.050
Ivy Micro Cap Growth Fund		0.950			0.950			0.950			0.930			0.930			0.900			0.860			0.830			0.830			0.800			0.800			0.800
Ivy Mid Cap Growth Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.760			0.730			0.730			0.700			0.670			0.670
Ivy Mid Cap Income Opportunities Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.760			0.730			0.730			0.700			0.670			0.670
Ivy Municipal Bond Fund		0.525			0.525			0.500			0.450			0.400			0.400			0.400			0.395			0.395			0.390			0.385			0.385
Ivy Municipal High Income Fund		0.525			0.525			0.500			0.450			0.400			0.400			0.400			0.395			0.395			0.390			0.385			0.385
Ivy Small Cap Core Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.760			0.730			0.730			0.720			0.720			0.720
Ivy Small Cap Growth Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.760			0.730			0.730			0.720			0.720			0.720
Ivy Tax-Managed Equity Fund		0.650			0.650			0.650			0.600			0.600			0.550			0.500			0.495			0.495			0.490			0.490			0.490
Ivy Value Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.545			0.545			0.540			0.540			0.540

For the period from May 18, 2009 to September 30, 2016, IICO voluntarily agreed to reduce the management fee paid to 0.485%, on an annual basis, of net assets for any day that Ivy Municipal High Income Fund’s net assets are below $500 million.

For Funds managed solely by IICO, IICO has voluntarily agreed to waive a Fund’s management fee on any day that the Fund’s net assets are less than $25 million, subject to IICO’s right to change or modify this waiver. See Expense Reimbursements and/or Waivers below for amounts waived during the period ended September 30, 2017.

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

Under an agreement between IICO and Mackenzie Financial Corporation (“Mackenzie”), Mackenzie serves as subadviser to Ivy Cundill Global Value Fund. Under an agreement between IICO and Advantus Capital Management, Inc. (“Advantus”), Advantus serves as subadviser to Ivy Advantus 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.

204 SEMIANNUAL REPORT 2017

Accounting Services Fees. The Trust has an Accounting and Administrative Services Agreement with WRSCO, doing business as WI Services Company (“WISC”), an indirect subsidiary of WDR. Under the agreement, WISC acts as the agent in providing bookkeeping and accounting services and assistance to the Trust, including maintenance of Fund records, pricing of Fund shares and preparation of certain shareholder reports. For these services, each Fund, other than Ivy Managed International Opportunities Fund, pays WISC a monthly fee of one-twelfth of the annual fee based on the average net asset levels shown in the following table:

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

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

Under the Accounting and Administrative Services Agreement for the Ivy Managed International Opportunities Fund, the Fund pays WISC a monthly fee of one-twelfth of the annual fee shown in the following table:

(M - Millions)	$0 to $10M		$10 to $25M		$25 to $50M		$50 to $100M		$100 to $200M		$200 to $350M		$350 to $550M		$550 to $750M		$750 to $1,000M		Over $1,000M
Annual Fee Rate	$	0.000	$	5.748	$	11.550	$	17.748	$	24.198	$	31.602	$	41.250	$	48.150	$	60.798	$	74.250

In addition, for each class of shares in excess of one, the Ivy Managed International Opportunities Fund pays WISC a monthly per-class fee equal to 1.25% of the monthly accounting services base fee.

Each Fund also pays WISC a monthly administrative fee at the annual rate of 0.01%, or one basis point, for the first $1 billion of net assets with no fee charged for net assets in excess of $1 billion. This fee is voluntarily waived by WISC until a Fund’s net assets are at least $10 million and is included in “Accounting services fee” on the Statement of Operations.

Shareholder Servicing. General. Under the Shareholder Servicing Agreement between the Trust and WISC, with respect to Class A, Class B, Class C, Class E and Class T shares, for each shareholder account that was in existence at any time during the prior month, each Fund pays a monthly fee that ranges from $1.5042 to $1.6958 per account; however, WISC has agreed to reduce that fee if the number of total shareholder accounts within the Complex (Waddell & Reed Advisors Funds, InvestEd Portfolios and Ivy Funds) reaches certain levels. Ivy Government Money Market Fund pays a monthly fee of $1.75 for each shareholder account that was in existence at any time during the prior month plus, for Class A shareholder accounts, $0.75 for each shareholder check processed in the prior month. Ivy Limited-Term Bond Fund Class A, which also has check writing privileges, pays $0.75 for each shareholder check processed in the prior month. For Class R shares, each Fund pays a monthly fee equal to one-twelfth of 0.25 of 1% of the average daily net assets of the class for the preceding month. For Class I and Class Y shares, each Fund pays a monthly fee equal to one-twelfth of 0.15 of 1% of the average daily net assets of the class for the preceding month. For Class 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, Class E and Class T Shares. Under a Distribution and Service Plan adopted by the Trust pursuant to Rule 12b–1 under the 1940 Act (the “Distribution and Service Plan”), each Fund, other than Ivy Government Money Market Fund, may pay a distribution and/or service fee to Ivy Distributors, Inc. (“IDI”) for Class A, Class E and Class T 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, Class E and Class T shares and/or provision of personal services to Fund shareholders and/or maintenance of shareholder accounts of that class.

Class B and Class C Shares. Under the Distribution and Service Plan, each Fund may pay IDI a service fee not to exceed 0.25% and a distribution fee not to exceed 0.75% of the Fund’s average annual net assets for Class B and Class C shares to

2017 SEMIANNUAL REPORT 205

compensate IDI for its services in connection with the distribution of shares of that class and/or provision of personal services to Class B or Class C shareholders and/or maintenance of shareholder accounts of that class.

Class R Shares. Under the Distribution and Service Plan, each Fund may pay IDI a fee of up to 0.50%, on an annual basis, of the average daily net assets of the Fund’s Class R shares to compensate IDI for, either directly or through third parties, distributing the Class R shares of that Fund, providing personal services to Class R shareholders and/or maintaining Class R shareholder accounts.

Class Y Shares. Under the Distribution and Service Plan, each Fund may pay IDI a fee of up to 0.25%, on an annual basis, of the average daily net assets of the Fund’s Class Y shares to compensate IDI for, either directly or through third parties, distributing the Class Y shares of that Fund, providing personal services to Class Y shareholders and/or maintaining Class Y shareholder accounts.

Sales Charges. As principal underwriter for the Trust’s shares, IDI receives sales commissions (which are not an expense of the Trust) for sales of Class A, Class E and Class T shares. A CDSC may be assessed against a shareholder’s redemption amount of Class B, Class C or certain Class A and Class E shares and is paid to IDI. During the period ended September 30, 2017, IDI received the following amounts in sales commissions and CDSCs:

	Gross Sales Commissions		CDSC											Commissions Paid(1)
			Class A			Class B			Class C			Class E
Ivy Advantus Bond Fund	$	101	$	—	*	$	4		$	2		$	—	$	87
Ivy Core Equity Fund		109		—	*		9			4			—		95
Ivy Cundill Global Value Fund		26		—	*		—	*		1			N/A		22
Ivy Dividend Opportunities Fund		42		—	*		4			1			—		33
Ivy Emerging Markets Equity Fund		275		—	*		1			5			—		371
Ivy European Opportunities Fund		26		—			—	*		1			—		22
Ivy Global Bond Fund		14		—			3			1			N/A		14
Ivy Global Equity Income Fund		32		—	*		1			—	*		N/A		27
Ivy Global Growth Fund		27		—			2			1			—		24
Ivy Global Income Allocation Fund		64		—	*		2			1			—		53
Ivy Government Money Market Fund		—		3			5			1			—		—
Ivy High Income Fund		587		3			54			28			—		573
Ivy International Core Equity Fund		271		1			6			9			—		454
Ivy Large Cap Growth Fund		318		1			5			4			—		272
Ivy Limited-Term Bond Fund		462		44			11			2			—		439
Ivy Managed International Opportunities Fund		33		—	*		—	*		—	*		—		29
Ivy Micro Cap Growth Fund		57		—	*		—	*		1			N/A		48
Ivy Mid Cap Growth Fund		131		—	*		7			5			—		127
Ivy Mid Cap Income Opportunities Fund		81		1			N/A			2			—		75
Ivy Municipal Bond Fund		24		—	*		—	*		1			N/A		23
Ivy Municipal High Income Fund		57		1			9			6			N/A		70
Ivy Small Cap Core Fund		100		—	*		1			5			—		108
Ivy Small Cap Growth Fund		143		1			4			7			—		137
Ivy Tax-Managed Equity Fund		42		—	*		—	*		—	*		N/A		40
Ivy Value Fund		27		—	*		8			1			—		25

* Not shown due to rounding.

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

Expense Reimbursements and/or Waivers. IICO, the Fund’s investment manager, IDI, the Fund’s distributor, and/or Waddell & Reed Services Company, doing business as WISC, the Fund’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund

206 SEMIANNUAL REPORT 2017

operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, if any). Fund and class expense limitations and related waivers/reimbursements for the period ended September 30, 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 Advantus Bond Fund	All Classes	Contractual	8-1-2011	7-31-2018	N/A		$	148	(1)	Investment Management Fee
	Class E	Contractual	1-31-2011	7-31-2018	1.02%(4)		$	3		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	8-1-2011	7-31-2018	0.54%		$	397		Shareholder Servicing
	Class N	Contractual	8-1-2011	7-31-2018	0.54%		$	7		Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Core Equity Fund	Class A	Contractual	1-11-2013	7-31-2018	1.15%		$	63		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2018	1.13%		$	16		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	1-11-2013	7-31-2018	0.84%		$	138		Shareholder Servicing
	Class Y	Contractual	1-11-2013	7-31-2018	0.84%		$	93		12b-1 Fees and/or Shareholder Servicing
Ivy Cundill Global Value Fund	All Classes	Contractual	12-3-2012	7-31-2018	N/A		$	162	(2)	Investment Management Fee
	Class E	Contractual	8-1-2008	7-31-2018	1.31%		$	2		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Dividend Opportunities Fund	Class E	Contractual	8-1-2008	7-31-2018	1.13%		$	11		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Emerging Markets Equity Fund	Class A	Contractual	3-17-2014	7-31-2018	1.58%		$	—		N/A
	Class B	Contractual	3-17-2014	7-31-2018	2.50%		$	—		N/A
	Class I	Contractual	3-17-2014	7-31-2018	0.99%		$	490		Shareholder Servicing
	Class N	Contractual	3-17-2014	7-31-2018	0.99%		$	—		N/A
	Class T	Contractual	7-5-2017	7-31-2018	Not to exceed Class A		$	—		N/A
	Class Y	Contractual	3-17-2014	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy European Opportunities Fund	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Global Bond Fund	All Classes	Contractual	6-2-2008	7-31-2018	N/A		$	60	(3)	Investment Management Fee
	Class A	Contractual	6-2-2008	7-31-2018	0.99%		$	59		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-2-2008	7-31-2018	1.74%		$	4		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	6-2-2008	7-31-2018	1.74%		$	11		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-2-2008	7-31-2018	0.74%		$	69		Shareholder Servicing
	Class N	Contractual	4-1-2017	7-31-2018	0.74%		$	—		Shareholder Servicing
	Class Y	Contractual	6-2-2008	7-31-2018	0.99%		$	2		12b-1 Fees and/or Shareholder Servicing
Ivy Global Equity Income Fund	Class A	Contractual	6-4-2012	7-31-2018	1.30%		$	—		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-4-2012	7-31-2018	1.19%		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Global Growth Fund	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A

2017 SEMIANNUAL REPORT 207

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Global Income Allocation Fund	Class E	Contractual	6-4-2012	7-31-2018	1.31%(4)		$	2		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-4-2012	7-31-2018	1.17%		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Government Money Market Fund	Class A	Voluntary	N/A	N/A	To maintain minimum yield(4)		$	—		12b-1 Fees and/or Shareholder Servicing
	Class B	Voluntary	N/A	N/A	To maintain minimum yield(4)		$	17		12b-1 Fees and/or Shareholder Servicing
	Class C	Voluntary	N/A	N/A	To maintain minimum yield(4)		$	87		12b-1 Fees and/or Shareholder Servicing
	Class E	Voluntary	N/A	N/A	To maintain minimum yield(4)		$	—		12b-1 Fees and/or Shareholder Servicing
	Class N	Voluntary	N/A	N/A	To maintain minimum yield(4)		$	—		Shareholder Servicing
Ivy High Income Fund	Class E	Contractual	8-1-2008	7-31-2018	1.11%(5)		$	4		12b-1 Fees and/or Shareholder Servicing
	Class T	Contractual	7-5-2017	7-31-2018	Not to exceed Class A		$	—		Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	37		N/A
Ivy International Core Equity Fund	Class E	Contractual	8-1-2008	7-31-2018	1.28%(4)		$	8		12b-1 Fees and/or Shareholder Servicing
	Class T	Contractual	7-5-2017	7-31-2018	Not to exceed Class A		$	—		Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Large Cap Growth Fund	Class A	Contractual	6-1-2006	7-31-2018	1.15%		$	28		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2018	1.15%		$	11		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-13-2011	7-31-2018	0.88%		$	30		Shareholder Servicing
	Class Y	Contractual	6-1-2006	7-31-2018	1.06%		$	11		12b-1 Fees and/or Shareholder Servicing
Ivy Limited-Term Bond Fund	Class E	Contractual	8-1-2010	7-31-2018	0.98%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	1		12b-1 Fees and/or Shareholder Servicing
Ivy Managed International Opportunities Fund	Class A	Contractual	3-17-2014	7-31-2018	0.49%		$	—		N/A
	Class B	Contractual	3-17-2014	7-31-2018	1.40%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	3-17-2014	7-31-2018	1.29%		$	—		N/A
	Class E	Contractual	3-17-2014	7-31-2018	0.39%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	3-17-2014	7-31-2018	0.16%		$	12		Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2018	Not to exceed Class I		$	—		N/A
	Class R	Contractual	3-17-2014	7-31-2018	0.72%		$	—		N/A
	Class Y	Contractual	3-17-2014	7-31-2018	0.38%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	3-17-2014	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Micro Cap Growth Fund	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A

208 SEMIANNUAL REPORT 2017

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Mid Cap Growth Fund	Class A	Contractual	8-1-2014	7-31-2018	1.31%		$	33		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2018	1.30%		$	14		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed		$	—		N/A
Ivy Mid Cap Income Opportunities Fund	Class A	Contractual	10-1-2014	7-31-2018	1.35%		$	35		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	10-1-2014	7-31-2018	2.07%		$	8		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	10-1-2014	7-31-2018	1.30%		$	—		N/A
	Class I	Contractual	10-1-2014	7-31-2018	1.05%		$	58		Shareholder Servicing
	Class N	Contractual	10-1-2014	7-31-2018	1.05%		$	—		N/A
	Class R	Contractual	10-1-2014	7-31-2018	1.80%		$	—		N/A
	Class Y	Contractual	10-1-2014	7-31-2018	1.35%		$	1		12b-1 Fees and/or Shareholder Servicing
Ivy Municipal Bond Fund	Class N	Contractual	7-5-2017	7-31-2018	Not to exceed Class I		$	—		Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Municipal High Income Fund	All Classes	Contractual	6-2-2008	7-31-2018	N/A		$	101	(6)	Investment Management Fee
	Class B	Contractual	8-1-2011	7-31-2018	1.62%		$	3		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	8-1-2011	7-31-2018	1.58%		$	43		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	8-1-2011	7-31-2018	0.68%		$	124		12b-1 Fees and/or Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2018	Not to exceed Class I		$	—		Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	0.94%		$	8		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Small Cap Core Fund	Class T	Contractual	7-5-2017	7-31-2018	Not to exceed Class A		$	—		N/A
	Class Y	Contractual	8-1-2008	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Small Cap Growth Fund	Class E	Contractual	8-1-2008	7-31-2018	1.35%(5)		$	10		12b-1 Fees and/or Shareholder Servicing
	Class T	Contractual	7-5-2017	7-31-2018	Not to exceed Class A		$	—		Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A
Ivy Tax-Managed Equity Fund	Class N	Contractual	7-5-2017	7-31-2018	Not to exceed Class I		$	—		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Value Fund	Class Y	Contractual	8-1-2011	7-31-2018	Not to exceed Class A		$	—		N/A

* Not shown due to rounding.

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

(2) The Fund’s management fee is being reduced by 0.16% of average daily net assets.

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

(4) Minimum yield was 0.01%.

(5) Reflects the lower expense limit which went into effect July 5, 2017.

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

2017 SEMIANNUAL REPORT 209

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2017 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

8. INTERFUND LENDING PROGRAM

Pursuant to an exemptive order issued by the SEC (“Order”), the Trust and the Advisors Fund Complex (Waddell & Reed Advisors Funds, Ivy Variable Insurance Portfolios and InvestEd Portfolios; referred to with the Funds for purposes of this section as Funds) have the ability to lend money to, and borrow money from, each other pursuant to a master interfund lending agreement (“Interfund Lending Program”). Under the Interfund Lending Program, the Funds may lend or borrow money for temporary purposes directly to or from one another (each an “Interfund Loan”), subject to meeting the conditions of the Order. The interest rate to be charged on an Interfund Loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The Funds made no Interfund Loans under the Interfund Lending Program during the period ended September 30, 2017.

9. AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands)

A summary of the transactions in affiliated companies during the period ended September 30, 2017 follows:

	3-31-17 Share Balance		Gross Additions		Gross Reductions		Realized Gain/(Loss)			Distributions Received		9-30-17 Share Balance		9-30-17 Value		Net Change in Unrealized Depreciation
Ivy High Income Fund
Larchmont Resources LLC(2)		15	$	—	$	—	$	—		$	—		15	$	4,905	$	(885	)
Maritime Finance Co. Ltd.		1,750		—		—		—			1,810		1,750		17,640		(381	)
							$	—		$	1,810			$	22,545	$	(1,266	)
	3-31-17 Principal Balance									Interest Received		9-30-17 Principal Balance				Net Change in Unrealized Depreciation
Larchmont Resources LLC (10.000% Cash or 10.000% PIK), 10.320%, 8-7-20	$	12,007		310		—		—		$	565	$	12,317		11,947	$	(415	)
	3-31-17 Share Balance		Gross Additions		Gross Reductions		Realized Gain/(Loss)(1)			Distributions Received		9-30-17 Share Balance		9-30-17 Value		Net Change in Unrealized Appreciation/ (Depreciation)
Ivy Managed International Opportunities Fund
Ivy Emerging Markets Equity Fund, Class I		1,880	$	21	$	278	$	313		$	—		N/A		N/A	$	(11,023	)
Ivy Emerging Markets Equity Fund, Class N(2)		N/A		2,174		1,110		1,370			—		1,818	$	37,751		15,117
Ivy European Opportunities Fund, Class I		987		18		321		186			—		N/A		N/A		(1,879	)
Ivy European Opportunities Fund, Class N		N/A		1,863		1,192		751			—		963		32,013		5,106
Ivy Global Growth Fund, Class I		435		12		260		77			—		N/A		N/A		(1,769	)
Ivy Global Growth Fund, Class N(2)		N/A		1,252		875		320			—		427		20,550		3,281
Ivy Global Income Allocation Fund, Class I		1,880		18		343		163			—		N/A		N/A		(2,243	)
Ivy Global Income Allocation Fund, Class N		N/A		3,281		1,228		564			710		1,943		29,968		2,172
Ivy International Core Equity Fund, Class I		4,422		51		772		663			—		N/A		N/A		(8,417	)
Ivy International Core Equity Fund, Class N		N/A		5,278		3,012		2,243			—		4,333		85,927		12,887
							$	6,650		$	710			$	206,209	$	13,232
	3-31-17 Share Balance		Gross Additions		Gross Reductions		Realized Gain/(Loss)			Distributions Received		9-30-17 Share Balance		9-30-17 Value		Net Change in Unrealized Depreciation
Ivy Municipal High Income Fund
1155 Island Avenue LLC(2)		6,578	$	—	$	—	$	—		$	—		6,578	$	1,841	$	(197	)
	3-31-17 Principal Balance									Interest Received		9-30-17 Principal Balance				Net Change in Unrealized Depreciation
1155 Island Avenue LLC, 10.000%, 12-11-24	$	310		—		—		—	*	$	15	$	311		311	$	—
1155 Island Avenue LLC (10.000% Cash or 12.500% PIK), 10.000%, 12-11-24		2,960		—		—		—			147		2,960		2,960		(17	)
							$	—	*	$	162			$	3,271	$	(17	)

* Not shown due to rounding.

(1) Included in Realized Gain/Loss, if applicable, are distributions from capital gains from the underlying securities.

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

210 SEMIANNUAL REPORT 2017

10. INVESTMENT SECURITIES TRANSACTIONS ($ amounts in thousands)

The cost of purchases and the proceeds from maturities and sales of investment securities (excluding short-term securities) for the period ended September 30, 2017, were as follows:

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Advantus Bond Fund	$	600,280	$	323,190	$	523,303	$	195,094
Ivy Core Equity Fund		—		430,061		—		582,648
Ivy Cundill Global Value Fund		—		42,548		—		65,058
Ivy Dividend Opportunities Fund		—		42,411		—		74,101
Ivy Emerging Markets Equity Fund		—		1,063,627		—		290,938
Ivy European Opportunities Fund		—		138,862		—		83,235
Ivy Global Bond Fund		26,547		28,232		12,051		20,946
Ivy Global Equity Income Fund		—		133,049		—		192,598
Ivy Global Growth Fund		—		146,862		—		183,527
Ivy Global Income Allocation Fund		—		172,318		6,402		214,884
Ivy Government Money Market Fund		—		—		—		—
Ivy High Income Fund		—		837,152		—		990,566
Ivy International Core Equity Fund		—		2,578,231		—		1,332,681
Ivy Large Cap Growth Fund		—		443,269		—		459,347
Ivy Limited-Term Bond Fund		6,982		170,976		88,327		233,364
Ivy Managed International Opportunities Fund		—		13,968		—		16,041
Ivy Micro Cap Growth Fund		—		15,545		—		29,130
Ivy Mid Cap Growth Fund		—		291,874		—		429,985
Ivy Mid Cap Income Opportunities Fund		—		91,428		—		81,684
Ivy Municipal Bond Fund		—		—		—		9,018
Ivy Municipal High Income Fund		—		7,707		—		151,565
Ivy Small Cap Core Fund		—		335,979		—		281,162
Ivy Small Cap Growth Fund		—		237,418		—		203,562
Ivy Tax-Managed Equity Fund		—		37,581		—		37,644
Ivy Value Fund		—		220,599		—		121,575

2017 SEMIANNUAL REPORT 211

11. CAPITAL SHARE TRANSACTIONS (All amounts in thousands)

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

	Ivy Advantus Bond Fund												Ivy Core Equity Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,372		$	25,517			8,589		$	91,338			1,166		$	16,275			4,710		$	61,865
Class B		20			220			133			1,426			13			154			114			1,270
Class C		173			1,868			887			9,469			244			2,938			1,088			12,554
Class E		30			319			168			1,800			61			852			217			2,848
Class I		9,600			103,272			56,092			600,304			3,056			47,482			21,338			301,046
Class N		23,538			253,031			97			1,029			9,870			151,841			325			4,714
Class R		503			5,400			609			6,446			7			100			50			650
Class Y		42			454			315			3,366			174			2,612			902			12,783
Shares issued in reinvestment of distributions to shareholders:
Class A		247			2,660			700			7,450			—			—			758			9,983
Class B		3			36			8			83			—			—			24			269
Class C		18			197			44			473			—			—			350			4,031
Class E		5			58			10			111			—			—			31			404
Class I		695			7,471			952			10,169			—			—			871			12,703
Class N		185			1,997			5			50			—			—			275			4,015
Class R		11			118			9			95			—			—			3			43
Class Y		6			62			11			113			—			—			143			2,030
Shares redeemed:
Class A		(3,193	)		(34,324	)		(56,758	)		(606,588	)		(2,855	)		(39,684	)		(28,469	)		(364,882	)
Class B		(132	)		(1,419	)		(290	)		(3,090	)		(175	)		(2,027	)		(321	)		(3,606	)
Class C		(600	)		(6,443	)		(1,602	)		(17,047	)		(1,209	)		(14,650	)		(3,123	)		(36,175	)
Class E		(65	)		(704	)		(149	)		(1,580	)		(74	)		(1,031	)		(157	)		(2,067	)
Class I		(7,942	)		(85,424	)		(15,245	)		(162,594	)		(8,852	)		(136,115	)		(8,871	)		(130,388	)
Class N		(4,229	)		(45,579	)		(91	)		(979	)		(10,334	)		(163,774	)		(3,720	)		(54,513	)
Class R		(194	)		(2,079	)		(188	)		(2,011	)		(19	)		(261	)		(32	)		(418	)
Class Y		(73	)		(784	)		(168	)		(1,799	)		(1,037	)		(15,536	)		(4,877	)		(68,656	)
Net increase (decrease)		21,020		$	225,924			(5,862	)	$	(61,966	)		(9,964	)	$	(150,824	)		(18,371	)	$	(229,497	)

212 SEMIANNUAL REPORT 2017

	Ivy Cundill Global Value Fund												Ivy Dividend Opportunities Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		162		$	2,760			694		$	10,617			430		$	7,948			2,430		$	42,761
Class B		—	*		6			2			29			1			25			63			1,087
Class C		14			233			62			925			44			797			460			8,030
Class E		3			52			12			194			39			715			67			1,177
Class I		297			5,211			7,149			102,985			840			15,604			10,986			190,964
Class N		15			262			22			355			41			756			117			2,070
Class R		2			36			—	*		3			—	*		5			15			271
Class Y		8			138			15			226			13			242			43			773
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			20			332			37			686			438			7,671
Class B		—			—			—			—			—	*		8			16			267
Class C		—			—			—			—			4			69			92			1,586
Class E		—			—			—	*		5			2			38			17			291
Class I		—			—			43			725			58			1,089			457			8,053
Class N		—			—			1			10			1			18			6			111
Class R		—			—			—			—			—	*		—	*		—	*		4
Class Y		—			—			1			13			1			26			16			281
Shares redeemed:
Class A		(592	)		(10,178	)		(8,342	)		(117,120	)		(1,067	)		(19,727	)		(11,322	)		(195,594	)
Class B		(13	)		(199	)		(39	)		(544	)		(81	)		(1,466	)		(153	)		(2,649	)
Class C		(152	)		(2,446	)		(322	)		(4,649	)		(409	)		(7,444	)		(901	)		(15,712	)
Class E		(58	)		(1,021	)		(12	)		(182	)		(20	)		(376	)		(62	)		(1,086	)
Class I		(997	)		(17,574	)		(2,014	)		(32,400	)		(1,968	)		(36,545	)		(2,850	)		(50,875	)
Class N		(13	)		(228	)		(22	)		(362	)		(46	)		(861	)		(26	)		(465	)
Class R		(2	)		(35	)		—			—			(10	)		(180	)		(4	)		(68	)
Class Y		(18	)		(324	)		(62	)		(940	)		(61	)		(1,133	)		(165	)		(2,916	)
Net decrease		(1,344	)	$	(23,307	)		(2,792	)	$	(39,778	)		(2,151	)	$	(39,706	)		(260	)	$	(3,968	)

* Not shown due to rounding.

2017 SEMIANNUAL REPORT 213

	Ivy Emerging Markets Equity Fund												Ivy European Opportunities Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		9,747		$	181,210			6,259		$	95,478			188		$	5,760			405		$	10,805
Class B		40			623			51			635			—	*		8			1			28
Class C		1,694			27,223			908			12,240			18			516			29			749
Class E		—			—			—			—			—			—			—			—
Class I		28,711			551,412			25,622			394,279			347			10,684			3,169			80,398
Class N		11,599			214,849			703			11,574			3,248			102,168			12			341
Class R		449			8,077			427			6,373			1			34			2			47
Class T		14			250			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		1,290			23,984			1,508			23,105			10			307			7			183
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			—			—			—			—			37			1,003
Class B		—			—			—			—			—			—			—	*		5
Class C		—			—			—			—			—			—			3			66
Class E		—			—			—			—			—			—			—	*		1
Class I		—			—			—			—			—			—			66			1,793
Class N		—			—			—			—			—			—			1			22
Class R		—			—			—			—			—			—			—	*		—
Class T		—			—			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		—			—			—			—			—			—			—	*		10
Shares redeemed:
Class A		(2,891	)		(53,734	)		(15,406	)		(217,287	)		(364	)		(11,017	)		(4,129	)		(105,191	)
Class B		(82	)		(1,243	)		(115	)		(1,423	)		(5	)		(149	)		(16	)		(399	)
Class C		(315	)		(4,999	)		(1,089	)		(14,097	)		(57	)		(1,632	)		(187	)		(4,732	)
Class E		—			—			—			—			—			—			—			—
Class I		(6,459	)		(123,309	)		(7,345	)		(113,748	)		(1,435	)		(43,934	)		(1,619	)		(43,925	)
Class N		(990	)		(19,365	)		(232	)		(3,696	)		(168	)		(5,332	)		(20	)		(541	)
Class R		(213	)		(3,858	)		(151	)		(2,280	)		(1	)		(19	)		—	*		(7	)
Class T		—			—			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		(460	)		(8,835	)		(997	)		(15,083	)		(7	)		(229	)		(17	)		(459	)
Net increase (decrease)		42,134		$	792,285			10,143		$	176,070			1,775		$	57,165			(2,256	)	$	(59,803	)

* Not shown due to rounding.

214 SEMIANNUAL REPORT 2017

	Ivy Global Bond Fund												Ivy Global Equity Income Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		577		$	5,616			1,742		$	16,426			348		$	4,526			4,428		$	53,508
Class B		10			94			38			361			1			8			21			257
Class C		304			2,967			212			2,007			55			709			231			2,794
Class I		2,114			20,584			10,172			95,689			1,240			16,050			24,155			283,183
Class N		2,491			24,475			356			3,345			37			490			35			431
Class R		11			112			24			230			1			15			10			115
Class Y		35			341			86			822			9			110			23			284
Shares issued in reinvestment of distributions to shareholders:
Class A		42			412			148			1,398			85			1,113			431			5,090
Class B		1			10			3			32			1			7			2			19
Class C		7			68			21			196			8			102			18			219
Class I		87			847			153			1,457			322			4,193			487			5,872
Class N		2			16			6			52			2			24			4			46
Class R		—	*		3			—	*		5			—	*		—	*		—	*		3
Class Y		3			26			6			54			—	*		1			1			7
Shares redeemed:
Class A		(896	)		(8,723	)		(11,331	)		(106,286	)		(1,084	)		(14,030	)		(20,144	)		(234,338	)
Class B		(68	)		(663	)		(123	)		(1,164	)		(14	)		(178	)		(28	)		(337	)
Class C		(312	)		(3,029	)		(815	)		(7,711	)		(92	)		(1,193	)		(445	)		(5,369	)
Class I		(1,503	)		(14,638	)		(3,718	)		(35,332	)		(5,449	)		(71,152	)		(6,270	)		(75,846	)
Class N		(196	)		(1,909	)		(101	)		(956	)		(21	)		(280	)		(45	)		(546	)
Class R		(8	)		(76	)		(10	)		(98	)		—	*		(1	)		(18	)		(222	)
Class Y		(37	)		(358	)		(78	)		(740	)		(2	)		(24	)		(58	)		(699	)
Net increase (decrease)		2,664		$	26,175			(3,209	)	$	(30,213	)		(4,553	)	$	(59,510	)		2,838		$	34,471

* Not shown due to rounding.

2017 SEMIANNUAL REPORT 215

	Ivy Global Growth Fund												Ivy Global Income Allocation Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		162		$	7,219			613		$	24,313			842		$	12,811			4,202		$	59,712
Class B		1			25			4			138			8			124			43			602
Class C		15			594			150			5,211			83			1,238			897			12,640
Class E		—			—			—			—			16			236			64			906
Class I		557			25,301			7,168			275,983			1,977			30,258			33,587			466,265
Class N		468			21,181			182			7,181			2,111			32,417			37			535
Class R		5			208			28			1,099			—	*		3			19			269
Class Y		26			1,169			132			5,254			44			668			122			1,778
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			—			—			291			4,417			942			13,204
Class B		—			—			—			—			4			58			8			111
Class C		—			—			—			—			50			752			97			1,351
Class E		—			—			—			—			5			71			8			109
Class I		—			—			—			—			626			9,595			884			12,701
Class N		—			—			—			—			50			763			5			65
Class R		—			—			—			—			—	*		—	*		—			—
Class Y		—			—			—			—			4			68			3			50
Shares redeemed:
Class A		(298	)		(13,378	)		(7,525	)		(285,172	)		(2,098	)		(31,844	)		(35,483	)		(488,405	)
Class B		(11	)		(420	)		(29	)		(1,006	)		(49	)		(730	)		(114	)		(1,606	)
Class C		(82	)		(3,186	)		(204	)		(7,094	)		(506	)		(7,580	)		(1,544	)		(21,763	)
Class E		—			—			—			—			(23	)		(343	)		(51	)		(726	)
Class I		(1,488	)		(67,510	)		(2,904	)		(118,255	)		(6,400	)		(98,098	)		(8,798	)		(127,427	)
Class N		(46	)		(2,129	)		(79	)		(3,212	)		(194	)		(2,990	)		(40	)		(576	)
Class R		(13	)		(560	)		(32	)		(1,284	)		(1	)		(16	)		(17	)		(251	)
Class Y		(124	)		(5,526	)		(238	)		(9,536	)		(52	)		(790	)		(67	)		(957	)
Net decrease		(828	)	$	(37,012	)		(2,734	)	$	(106,380	)		(3,212	)	$	(48,912	)		(5,196	)	$	(71,413	)

* Not shown due to rounding.

216 SEMIANNUAL REPORT 2017

	Ivy Government Money Market Fund												Ivy High Income Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		186,863		$	186,863			321,835		$	321,835			22,396		$	170,784			58,694		$	430,146
Class B		536			536			3,635			3,635			58			437			553			4,066
Class C		6,419			6,419			27,720			27,720			5,589			42,575			18,215			133,637
Class E		1,402			1,402			3,888			3,888			87			667			338			2,478
Class I		N/A			N/A			N/A			N/A			36,967			282,214			171,766			1,253,661
Class N		4,511			4,511			N/A			N/A			4,809			36,669			2,366			17,514
Class R		N/A			N/A			N/A			N/A			615			4,692			2,015			14,799
Class T		N/A			N/A			N/A			N/A			33			250			N/A			N/A
Class Y		N/A			N/A			N/A			N/A			8,924			68,123			25,827			189,914
Shares issued in reinvestment of distributions to shareholders:
Class A		133			133			51			51			4,839			36,944			12,923			94,683
Class B		—	*		—	*		1			1			250			1,911			578			4,239
Class C		1			1			5			5			3,160			24,122			7,248			53,198
Class E		5			5			1			1			43			329			87			639
Class I		N/A			N/A			N/A			N/A			7,166			54,707			13,101			96,486
Class N		1			1			N/A			N/A			222			1,691			450			3,290
Class R		N/A			N/A			N/A			N/A			282			2,150			597			4,390
Class T		N/A			N/A			N/A			N/A			—			—			N/A			N/A
Class Y		N/A			N/A			N/A			N/A			1,302			9,937			3,135			23,032
Shares redeemed:
Class A		(239,905	)		(239,905	)		(304,392	)		(304,392	)		(31,525	)		(240,443	)		(177,033	)		(1,286,634	)
Class B		(2,038	)		(2,038	)		(4,605	)		(4,605	)		(1,534	)		(11,703	)		(2,833	)		(20,794	)
Class C		(12,574	)		(12,574	)		(43,257	)		(43,257	)		(17,816	)		(135,965	)		(46,241	)		(338,974	)
Class E		(1,834	)		(1,834	)		(4,438	)		(4,438	)		(117	)		(891	)		(328	)		(2,412	)
Class I		N/A			N/A			N/A			N/A			(48,400	)		(369,088	)		(139,630	)		(1,026,757	)
Class N		(72	)		(72	)		N/A			N/A			(903	)		(6,885	)		(6,264	)		(45,497	)
Class R		N/A			N/A			N/A			N/A			(1,274	)		(9,727	)		(2,329	)		(17,185	)
Class T		N/A			N/A			N/A			N/A			—			—			N/A			N/A
Class Y		N/A			N/A			N/A			N/A			(15,264	)		(116,506	)		(35,591	)		(262,335	)
Net increase (decrease)		(56,552	)	$	(56,552	)		444		$	444			(20,091	)	$	(153,006	)		(92,356	)	$	(674,416	)

* Not shown due to rounding.

2017 SEMIANNUAL REPORT 217

	Ivy International Core Equity Fund												Ivy Large Cap Growth Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		7,152		$	135,513			14,706		$	243,306			2,286		$	46,074			6,888		$	125,044
Class B		67			1,139			116			1,718			40			625			178			2,596
Class C		2,340			39,469			2,702			40,108			383			6,502			1,195			18,529
Class E		82			1,580			61			1,029			76			1,555			120			2,189
Class I		49,211			937,267			111,785			1,826,777			4,355			92,297			44,916			815,931
Class N		47,678			911,927			13,232			222,469			7,676			162,520			55			1,059
Class R		2,500			47,003			1,387			23,081			66			1,297			175			3,094
Class T		13			250			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		6,575			124,967			9,861			164,850			93			1,921			397			7,412
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			634			10,553			—			—			1,184			21,090
Class B		—			—			5			70			—			—			40			566
Class C		—			—			136			2,017			—			—			290			4,377
Class E		—			—			5			79			—			—			32			573
Class I		—			—			2,358			39,444			—			—			2,242			41,785
Class N		—			—			438			7,342			—			—			1			15
Class R		—			—			26			439			—			—			53			912
Class T		—			—			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		—			—			265			4,437			—			—			88			1,600
Shares redeemed:
Class A		(5,047	)		(95,297	)		(79,736	)		(1,272,835	)		(3,092	)		(62,686	)		(50,383	)		(877,941	)
Class B		(143	)		(2,394	)		(231	)		(3,397	)		(158	)		(2,490	)		(339	)		(4,943	)
Class C		(2,026	)		(34,121	)		(6,851	)		(101,345	)		(1,053	)		(17,956	)		(2,555	)		(39,850	)
Class E		(22	)		(422	)		(84	)		(1,396	)		(51	)		(1,050	)		(142	)		(2,608	)
Class I		(27,599	)		(526,520	)		(56,217	)		(939,946	)		(7,633	)		(162,536	)		(14,102	)		(271,049	)
Class N		(6,050	)		(117,272	)		(4,951	)		(83,535	)		(585	)		(12,752	)		(382	)		(7,035	)
Class R		(299	)		(5,682	)		(511	)		(8,507	)		(165	)		(3,236	)		(412	)		(7,313	)
Class T		—			—			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		(3,580	)		(68,422	)		(22,719	)		(381,809	)		(310	)		(6,426	)		(5,632	)		(105,205	)
Net increase (decrease)		70,852		$	1,348,985			(13,583	)	$	(205,051	)		1,928		$	43,659			(16,093	)	$	(269,172	)

218 SEMIANNUAL REPORT 2017

	Ivy Limited-Term Bond Fund												Ivy Managed International Opportunities Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		7,961		$	86,356			29,542		$	321,281			478		$	5,341			1,052		$	10,156
Class B		35			376			253			2,750			1			14			2			18
Class C		318			3,452			2,065			22,470			40			431			74			710
Class E		59			638			223			2,428			—			—			—			—
Class I		5,962			64,660			100,519			1,098,671			1,609			18,407			12,890			118,814
Class N		6,139			66,604			8,890			96,919			23			256			N/A			N/A
Class R		3			34			56			606			72			823			9			85
Class Y		303			3,283			960			10,469			3			37			8			82
Shares issued in reinvestment of distributions to shareholders:
Class A		388			4,205			1,176			12,787			—			—			73			721
Class B		3			30			8			83			—			—			1			5
Class C		30			323			75			816			—			—			2			20
Class E		4			41			7			76			—			—			1			5
Class I		741			8,036			1,174			12,759			—			—			138			1,360
Class N		81			874			127			1,375			N/A			—			N/A			N/A
Class R		—	*		1			—	*		4			—			—			—			—
Class Y		11			117			26			280			—			—			1			6
Shares redeemed:
Class A		(14,048	)		(152,355	)		(127,140	)		(1,387,340	)		(737	)		(8,247	)		(14,121	)		(129,980	)
Class B		(240	)		(2,598	)		(619	)		(6,734	)		(21	)		(231	)		(66	)		(630	)
Class C		(1,749	)		(18,962	)		(5,887	)		(63,986	)		(41	)		(450	)		(169	)		(1,603	)
Class E		(88	)		(957	)		(143	)		(1,554	)		—			—			—			—
Class I		(14,911	)		(161,732	)		(26,190	)		(284,291	)		(1,611	)		(18,097	)		(2,983	)		(29,829	)
Class N		(6,225	)		(67,500	)		(1,126	)		(12,260	)		—			—			N/A			N/A
Class R		(6	)		(61	)		(58	)		(629	)		(59	)		(681	)		(1	)		(10	)
Class Y		(566	)		(6,140	)		(993	)		(10,770	)		(11	)		(124	)		(17	)		(163	)
Net decrease		(15,795	)	$	(171,275	)		(17,055	)	$	(183,790	)		(254	)	$	(2,521	)		(3,106	)	$	(30,233	)

* Not shown due to rounding.

2017 SEMIANNUAL REPORT 219

	Ivy Micro Cap Growth Fund												Ivy Mid Cap Growth Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		191		$	4,617			1,043		$	22,888			1,635		$	35,570			4,301		$	85,370
Class B		—	*		1			9			187			27			487			121			1,998
Class C		15			333			59			1,262			368			6,941			1,159			20,270
Class E		N/A			N/A			N/A			N/A			33			700			88			1,727
Class I		403			10,012			3,757			79,041			7,114			166,975			23,407			493,522
Class N		52			1,312			42			972			3,474			80,660			2,779			59,438
Class R		1			29			7			164			224			4,796			603			11,815
Class Y		2			42			15			345			1,035			23,612			3,066			63,584
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			47			1,127			—			—			884			17,805
Class B		—			—			1			21			—			—			45			745
Class C		—			—			5			102			—			—			484			8,498
Class E		N/A			N/A			N/A			N/A			—			—			15			297
Class I		—			—			37			904			—			—			1,997			42,946
Class N		—			—			1			25			—			—			98			2,118
Class R		—			—			—	*		4			—			—			89			1,761
Class Y		—			—			1			14			—			—			491			10,288
Shares redeemed:
Class A		(459	)		(11,125	)		(4,768	)		(97,812	)		(3,593	)		(78,690	)		(26,110	)		(515,263	)
Class B		(11	)		(259	)		(21	)		(440	)		(128	)		(2,286	)		(335	)		(5,511	)
Class C		(48	)		(1,104	)		(122	)		(2,500	)		(1,715	)		(32,529	)		(5,687	)		(99,198	)
Class E		N/A			N/A			N/A			N/A			(32	)		(699	)		(71	)		(1,379	)
Class I		(558	)		(13,867	)		(1,409	)		(32,361	)		(8,592	)		(199,781	)		(46,039	)		(978,151	)
Class N		(20	)		(517	)		(67	)		(1,479	)		(932	)		(21,958	)		(3,774	)		(78,938	)
Class R		(1	)		(15	)		(11	)		(227	)		(676	)		(14,426	)		(1,783	)		(34,897	)
Class Y		(1	)		(14	)		(20	)		(454	)		(3,830	)		(87,315	)		(12,666	)		(261,007	)
Net decrease		(434	)	$	(10,555	)		(1,394	)	$	(28,217	)		(5,588	)	$	(117,943	)		(56,838	)	$	(1,152,162	)

* Not shown due to rounding.

220 SEMIANNUAL REPORT 2017

	Ivy Mid Cap Income Opportunities Fund												Ivy Municipal Bond Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		661		$	8,323			10,872		$	127,692			336		$	4,011			2,575		$	31,330
Class B		N/A			N/A			N/A			N/A			4			45			31			379
Class C		119			1,489			1,359			16,315			39			465			378			4,556
Class E		204			2,562			202			2,449			N/A			N/A			N/A			N/A
Class I		3,300			41,657			17,184			203,633			1,037			12,387			10,759			131,853
Class N		4,057			50,855			395			4,785			22			257			N/A			N/A
Class R		203			2,553			204			2,459			N/A			N/A			N/A			N/A
Class Y		365			4,590			1,097			13,142			1			6			15			178
Shares issued in reinvestment of distributions to shareholders:
Class A		28			358			75			912			67			795			168			2,023
Class B		N/A			N/A			N/A			N/A			1			14			2			25
Class C		—			—			4			45			16			189			31			375
Class E		—			—			—			—			N/A			N/A			N/A			N/A
Class I		64			817			105			1,286			109			1,307			165			1,979
Class N		18			228			1			16			—	*		—	*		N/A			N/A
Class R		—			—			—			—			N/A			N/A			N/A			N/A
Class Y		1			10			2			30			—	*		2			1			9
Shares redeemed:
Class A		(2,210	)		(27,850	)		(10,302	)		(118,342	)		(962	)		(11,479	)		(12,106	)		(147,889	)
Class B		N/A			N/A			N/A			N/A			(21	)		(250	)		(58	)		(690	)
Class C		(343	)		(4,287	)		(563	)		(6,964	)		(408	)		(4,856	)		(894	)		(10,693	)
Class E		(202	)		(2,546	)		(201	)		(2,429	)		N/A			N/A			N/A			N/A
Class I		(4,839	)		(60,930	)		(4,269	)		(52,023	)		(1,602	)		(19,111	)		(3,507	)		(41,913	)
Class N		(496	)		(6,262	)		(264	)		(3,173	)		—			—			N/A			N/A
Class R		(202	)		(2,538	)		(201	)		(2,423	)		N/A			N/A			N/A			N/A
Class Y		(524	)		(6,569	)		(908	)		(10,844	)		(5	)		(59	)		(31	)		(365	)
Net increase (decrease)		204		$	2,460			14,792		$	176,566			(1,366	)	$	(16,277	)		(2,471	)	$	(28,843	)

* Not shown due to rounding.

2017 SEMIANNUAL REPORT 221

	Ivy Municipal High Income Fund												Ivy Small Cap Core Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,788		$	14,254			14,476		$	76,651			891		$	15,786			6,638		$	109,678
Class B		15			76			138			727			11			166			210			2,899
Class C		721			3,692			4,139			21,899			314			4,820			1,290			19,175
Class E		N/A			N/A			N/A			N/A			—			—			—			—
Class I		13,945			71,301			55,943			294,333			5,096			97,754			14,323			252,978
Class N		54			274			N/A			N/A			2,125			40,272			310			5,711
Class R		N/A			N/A			N/A			N/A			283			5,012			306			5,128
Class T		N/A			N/A			N/A			N/A			14			250			N/A			N/A
Class Y		959			4,911			1,433			7,432			232			4,323			1,028			18,061
Shares issued in reinvestment of distributions to shareholders:
Class A		678			3,466			2,131			11,200			—			—			477			8,343
Class B		20			104			49			260			—			—			14			197
Class C		375			1,919			1,047			5,501			—			—			70			1,065
Class E		N/A			N/A			N/A			N/A			—			—			—	*		8
Class I		1,574			8,051			4,177			21,953			—			—			375			7,059
Class N		—	*		—	*		N/A			N/A			—			—			13			255
Class R		N/A			N/A			N/A			N/A			—			—			13			218
Class T		N/A			N/A			N/A			N/A			—			—			N/A			N/A
Class Y		50			257			128			672			—			—			36			650
Shares redeemed:
Class A		(10,135	)		(51,818	)		(44,293	)		(233,288	)		(1,734	)		(30,772	)		(9,258	)		(145,421	)
Class B		(254	)		(1,301	)		(610	)		(3,184	)		(120	)		(1,742	)		(88	)		(1,199	)
Class C		(5,561	)		(28,436	)		(14,234	)		(74,260	)		(326	)		(5,011	)		(350	)		(5,103	)
Class E		N/A			N/A			N/A			N/A			—			—			—			—
Class I		(31,755	)		(162,380	)		(71,660	)		(372,825	)		(3,257	)		(62,353	)		(2,984	)		(54,387	)
Class N		—	*		—	*		N/A			N/A			(241	)		(4,700	)		(89	)		(1,582	)
Class R		N/A			N/A			N/A			N/A			(118	)		(2,126	)		(148	)		(2,554	)
Class T		N/A			N/A			N/A			N/A			—			—			N/A			N/A
Class Y		(1,118	)		(5,722	)		(2,623	)		(13,715	)		(457	)		(8,456	)		(384	)		(6,827	)
Net increase (decrease)		(27,644	)	$	(141,352	)		(49,759	)	$	(256,644	)		2,713		$	53,223			11,802		$	214,352

* Not shown due to rounding.

222 SEMIANNUAL REPORT 2017

	Ivy Small Cap Growth Fund												Ivy Tax-Managed Equity Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17						Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,606		$	28,482			3,412		$	55,054			199		$	4,391			856		$	16,555
Class B		20			263			67			840			46			982			7			134
Class C		332			4,885			1,006			13,745			33			684			84			1,552
Class E		35			616			117			1,900			N/A			N/A			N/A			N/A
Class I		3,295			74,860			10,438			209,067			485			10,847			4,393			82,757
Class N		1,767			39,715			2,382			47,141			14			306			N/A			N/A
Class R		327			5,742			710			11,364			N/A			N/A			N/A			N/A
Class T		14			250			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		704			15,232			2,260			44,153			—	*		2			2			45
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			829			13,748			—			—			—			—
Class B		—			—			47			591			—			—			—			—
Class C		—			—			822			11,322			—			—			—			—
Class E		—			—			26			434			N/A			N/A			N/A			N/A
Class I		—			—			537			11,335			—			—			—			—
Class N		—			—			136			2,876			N/A			—			N/A			N/A
Class R		—			—			154			2,511			N/A			N/A			N/A			N/A
Class T		—			—			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		—			—			299			5,994			—			—			—			—
Shares redeemed:
Class A		(1,896	)		(33,769	)		(12,503	)		(195,128	)		(145	)		(3,182	)		(4,804	)		(89,692	)
Class B		(87	)		(1,169	)		(172	)		(2,152	)		(48	)		(1,017	)		(18	)		(333	)
Class C		(1,076	)		(15,911	)		(2,787	)		(37,583	)		(24	)		(491	)		(112	)		(2,067	)
Class E		(33	)		(576	)		(77	)		(1,244	)		N/A			N/A			N/A			N/A
Class I		(1,979	)		(45,214	)		(5,805	)		(117,165	)		(518	)		(11,529	)		(1,228	)		(24,483	)
Class N		(338	)		(7,729	)		(626	)		(12,913	)		—	*		—			N/A			N/A
Class R		(372	)		(6,531	)		(924	)		(14,707	)		N/A			N/A			N/A			N/A
Class T		—			—			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		(1,278	)		(27,494	)		(7,700	)		(152,198	)		—	*		(3	)		(8	)		(160	)
Net increase (decrease)		1,041		$	31,652			(7,352	)	$	(101,015	)		42		$	990			(828	)	$	(15,692	)

* Not shown due to rounding.

2017 SEMIANNUAL REPORT 223

	Ivy Value Fund
	Six months ended 9-30-17 (Unaudited)						Year ended 3-31-17
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		306		$	7,011			1,737		$	36,272
Class B		7			141			39			778
Class C		36			802			219			4,574
Class E		—			—			—			—
Class I		996			22,877			9,872			198,098
Class N		7,121			161,428			366			7,470
Class R		1			15			—	*		6
Class Y		1			17			89			1,825
Shares issued in reinvestment of distributions to shareholders:
Class A		7			156			174			3,544
Class B		—			—			2			38
Class C		—			—			14			283
Class E		—	*		1			—	*		4
Class I		32			742			116			2,516
Class N		30			687			9			191
Class R		—	*		—	*		—	*		—
Class Y		—	*		1			2			36
Shares redeemed:
Class A		(698	)		(15,946	)		(9,933	)		(196,212	)
Class B		(57	)		(1,214	)		(72	)		(1,405	)
Class C		(168	)		(3,707	)		(272	)		(5,486	)
Class E		—			—			—			—
Class I		(1,602	)		(36,894	)		(2,166	)		(46,566	)
Class N		(622	)		(14,504	)		(67	)		(1,403	)
Class R		—			—			(1	)		(16	)
Class Y		(4	)		(94	)		(141	)		(3,061	)
Net increase (decrease)		5,386		$	121,519			(13	)	$	1,486

* Not shown due to rounding.

12. COMMITMENTS ($ amounts in thousands)

Bridge loan commitments may obligate a Fund to furnish temporary financing to a borrower until permanent financing can be arranged. In connection with these commitments, the Fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income is included in interest income on the Statement of Operations. As of September 30, 2017, there were no outstanding bridge loan commitments.

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

For Federal income tax purposes, cost of investments owned at September 30, 2017 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Advantus Bond Fund	$	956,596	$	17,830	$	4,824	$	13,006
Ivy Core Equity Fund		722,477		176,019		3,971		172,048
Ivy Cundill Global Value Fund		165,679		44,096		9,787		34,309
Ivy Dividend Opportunities Fund		279,529		86,977		2,479		84,498
Ivy Emerging Markets Equity Fund		1,472,698		406,572		11,395		395,177
Ivy European Opportunities Fund		220,208		45,601		1,087		44,514
Ivy Global Bond Fund		197,343		5,219		6,522		(1,303	)
Ivy Global Equity Income Fund		255,015		50,902		1,248		49,654

224 SEMIANNUAL REPORT 2017

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Global Growth Fund	$	360,651	$	90,859	$	3,961	$	86,898
Ivy Global Income Allocation Fund		655,089		64,603		31,130		33,473
Ivy Government Money Market Fund		166,874		—		—		—
Ivy High Income Fund		4,594,325		148,548		382,415		(233,867	)
Ivy International Core Equity Fund		5,872,138		889,380		74,956		814,424
Ivy Large Cap Growth Fund		1,157,824		704,488		2,266		702,222
Ivy Limited-Term Bond Fund		1,438,671		9,671		5,473		4,198
Ivy Managed International Opportunities Fund		173,986		32,484		—		32,484
Ivy Micro Cap Growth Fund		117,661		51,087		3,951		47,136
Ivy Mid Cap Growth Fund		1,736,852		727,620		114,909		612,711
Ivy Mid Cap Income Opportunities Fund		288,474		52,607		3,445		49,162
Ivy Municipal Bond Fund		165,648		9,937		313		9,624
Ivy Municipal High Income Fund		871,753		70,223		38,027		32,196
Ivy Small Cap Core Fund		505,173		113,802		2,900		110,902
Ivy Small Cap Growth Fund		807,356		328,457		14,209		314,248
Ivy Tax-Managed Equity Fund		93,002		37,839		178		37,661
Ivy Value Fund		400,761		76,216		16,590		59,626

For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2017 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 Advantus Bond Fund	$	280	$	—	$	—	$	5,217	$	—
Ivy Core Equity Fund		271		18,228		—		—		—
Ivy Cundill Global Value Fund		957		—		—		—		—
Ivy Dividend Opportunities Fund		2,645		5,447		—		—		—
Ivy Emerging Markets Equity Fund		—		—		—		—		136
Ivy European Opportunities Fund		524		—		—		—		—
Ivy Global Bond Fund		234		—		—		—		—
Ivy Global Equity Income Fund		673		—		—		—		—
Ivy Global Growth Fund		—		1,025		—		—		—
Ivy Global Income Allocation Fund		2,112		—		—		—		—
Ivy Government Money Market Fund		26		—		—		—		—
Ivy High Income Fund		1,380		—		—		—		—
Ivy International Core Equity Fund		12,917		—		—		—		—
Ivy Large Cap Growth Fund		1,035		36,410		—		—		—
Ivy Limited-Term Bond Fund		429		—		—		—		—
Ivy Managed International Opportunities Fund		—		—		—		—		71
Ivy Micro Cap Growth Fund		—		—		—		21		533
Ivy Mid Cap Growth Fund		—		96,977		—		—		7,156
Ivy Mid Cap Income Opportunities Fund		345		—		—		—		—
Ivy Municipal Bond Fund		64		—		—		—		—
Ivy Municipal High Income Fund		226		719		—		—		—
Ivy Small Cap Core Fund		8,469		5,048		—		—		—
Ivy Small Cap Growth Fund		—		76,821		—		—		2,104
Ivy Tax-Managed Equity Fund		—		—		—		—		70
Ivy Value Fund		396		2,738		—		—		—

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.

2017 SEMIANNUAL REPORT 225

The tax character of dividends and distributions paid during the two fiscal years ended March 31, 2017 and 2016 were as follows:

	March 31, 2017				March 31, 2016
Fund	Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains		Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains
Ivy Advantus Bond Fund	$	20,119	$	—	$	18,123	$	—
Ivy Core Equity Fund		5,259		30,772		14,021		62,572
Ivy Cundill Global Value Fund		1,105		—		1,992		—
Ivy Dividend Opportunities Fund		6,010		13,933		3,493		30,139
Ivy Emerging Markets Equity Fund		—		—		4,983		—
Ivy European Opportunities Fund		2,973		—		948		—
Ivy Global Bond Fund		3,572		—		6,423		—
Ivy Global Equity Income Fund		12,392		—		9,054		8,438
Ivy Global Growth Fund		—		—		573		11,167
Ivy Global Income Allocation Fund		28,894		—		31,144		—
Ivy Government Money Market Fund		62		—		38		—
Ivy High Income Fund		346,065		—		487,204		—
Ivy International Core Equity Fund		77,682		—		42,519		—
Ivy Large Cap Growth Fund		—		76,259		—		109,373
Ivy Limited-Term Bond Fund		30,357		—		23,128		—
Ivy Managed International Opportunities Fund		2,152		—		1,484		—
Ivy Micro Cap Growth Fund		—		2,235		—		7,628
Ivy Mid Cap Growth Fund		—		92,513		47,509		339,017
Ivy Mid Cap Income Opportunities Fund		2,452		—		1,322		—
Ivy Municipal Bond Fund		5,149		—		4,224		—
Ivy Municipal High Income Fund		54,485		—		53,839		—
Ivy Small Cap Core Fund		10,791		7,727		—		33,901
Ivy Small Cap Growth Fund		—		51,252		79		130,985
Ivy Tax-Managed Equity Fund		—		—		350		1,745
Ivy Value Fund		6,858		—		5,446		28,458

⁽¹⁾  Includes short-term capital gains distributed, if any.

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

Accumulated capital losses represent net capital loss carryovers as of March 31, 2017 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), a Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years which have only an eight year carryforward period. As a result of this ordering rule, pre-enactment capital loss carryovers may expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under the previous law. The Fund’s first fiscal year end subject to the Modernization Act was March 31, 2012. The following table shows the expiration dates for capital loss carryovers from pre-enactment taxable years and the amounts of capital loss carryovers, if any, by each of the applicable Funds electing to be taxed as a regulated investment company during the year ended March 31, 2017:

	Pre-Enactment				Post-Enactment
Fund	2018		2019		Short-Term Capital Loss Carryover		Long-Term Capital Loss Carryover
Ivy Advantus Bond Fund	$	12,355	$	1,704	$	—	$	—
Ivy Core Equity Fund		—		—		—		—
Ivy Cundill Global Value Fund		6,489		—		—		16,444
Ivy Dividend Opportunities Fund		—		—		—		—
Ivy Emerging Markets Equity Fund		606		—		104,504		—
Ivy European Opportunities Fund		115,739		—		17,377		4,502
Ivy Global Bond Fund		—		—		3,450		9,382

226 SEMIANNUAL REPORT 2017

	Pre-Enactment				Post-Enactment
Fund	2018		2019		Short-Term Capital Loss Carryover		Long-Term Capital Loss Carryover
Ivy Global Equity Income Fund	$	—	$	—	$	22,747	$	2,488
Ivy Global Growth Fund		—		—		—		—
Ivy Global Income Allocation Fund		5,466		—		27,129		10,169
Ivy Government Money Market Fund		—		—		—		—
Ivy High Income Fund		—		—		34,237		587,254
Ivy International Core Equity Fund		—		—		152,517		2,325
Ivy Large Cap Growth Fund		—		—		—		—
Ivy Limited-Term Bond Fund		—		—		11,064		6,163
Ivy Managed International Opportunities Fund		297		3,709		—		—
Ivy Micro Cap Growth Fund		—		—		—		—
Ivy Mid Cap Growth Fund		—		—		—		—
Ivy Mid Cap Income Opportunities Fund		—		—		3,805		1,173
Ivy Municipal Bond Fund		84		146		—		2,269
Ivy Municipal High Income Fund		—		—		—		—
Ivy Small Cap Core Fund		—		—		—		—
Ivy Small Cap Growth Fund		—		—		—		—
Ivy Tax-Managed Equity Fund		—		—		1,471		—
Ivy Value Fund		—		—		—		—

Ivy Asset Strategy New Opportunities Fund was merged into Ivy Emerging Markets Equity Fund as of March 17, 2014. At the time of the merger, Ivy Asset Strategy New Opportunities Fund had capital loss carryovers available to offset future gains of the Ivy Emerging Markets Equity Fund. These carryovers are annually limited to $7,827 plus any unused limitations from prior years.

2017 SEMIANNUAL REPORT 227

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENTS Ivy Funds

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 15 and 16, 2017, the Board, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), unanimously approved the continuance of the Investment Management Agreement (the “Management Agreement”) between Ivy Investment Management Company (“IICO”) and the Trust, and the continuance of the Investment Subadvisory Agreements between IICO and:

• Advantus Capital Management, Inc. (with respect to Ivy Advantus Bond Fund and Ivy Advantus Real Estate Securities Fund);

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

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

• Pictet Asset Management Limited and Pictet Asset Management (Singapore) Pte Ltd. (with respect to the Ivy Emerging Markets Local Currency Debt Fund)

• Pictet Asset Management Limited and Pictet Asset Management SA (Ivy Targeted Return Bond Fund)

• Apollo Credit Management, LLC (Ivy Apollo Multi–Asset Income Fund and Ivy Apollo Strategic Income Fund)

Each such subadviser referred to herein as a “Subadviser.”

The Board’s Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO and the Subadvisers. Independent legal counsel explained the factors that the Board should consider as part of its review of the various agreements, all as outlined in a memorandum it had provided to the Board prior to the meeting, including, among other things, the nature and the quality of the services provided by IICO and the Subadvisers, profitability (including any fall-out benefits) from the relationships with each series of the Trust (each a “Fund” and together, the “Funds”), economies of scale, the role played by the Independent Trustees, and information on comparative fees and expenses. The Independent Trustees also considered the written responses and materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees’ legal counsel prior to the meeting, as well as materials produced in response to a follow-up request list sent to IICO by independent legal counsel on behalf of the Independent Trustees. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO, as well as an explanation of the methodology by which the profitability analysis was calculated. The Board also received extensive materials on performance, expenses and comparable fund information from Broadridge, Inc. (“Broadridge”), an independent mutual fund rating service. Finally, the Independent Trustees received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Trustees previously had reviewed and discussed these materials during a telephonic meeting in July 2017. They further reviewed these materials among themselves, with their independent legal counsel and the independent fee consultant, and with the other Board members at executive sessions of the Independent Trustees at the August 15^th and 16th Board meeting, during which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board’s determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to the Funds by IICO and each Subadviser, taking into account the large amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence requests submitted by independent legal counsel to the Independent Trustees.

The Board also took into account the report from its Investment Oversight Committee (the “IOC”), in light of that committee’s duties to assist the Board in the 15(c) process. The IOC had reported to the Board on its review of the overall performance of the Funds, IICO’s investment risk management function, and the proposed and on-going changes IICO has been considering for itself, the Trust and the overall fund complex. As such, the Board examined all of IICO’s activities (both taken and proposed) in light of the Funds’ performance and expense structure, as well as the proposed overall rationalization of the fund complex, which is designed to provide economies of scale to the Funds’ shareholders, reduce the Funds’ expenses and enhance the performance of the Funds, particularly in the context of substantial industry change and regulatory developments.

The Board likewise considered the knowledge it had received from its regular meetings, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the other services provided to the Funds by IICO and each Subadviser (such as managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to each Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees,

228 SEMIANNUAL REPORT 2017

communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable laws and regulations). The Board also took into account the compliance environment at IICO and each Subadviser, noting the resources that each entity has dedicated towards compliance. The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with Funds

The Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. In that regard, the Board discussed the transfer agency/shareholder servicing fees that Waddell & Reed Services Company, an affiliate of IICO, provides the Funds. The Board also considered the benefits that accrue to each service provider organization from its respective relationship with the Funds, including the fact that a variety of services are provided by affiliates of IICO, including distribution, administrative and fund accounting services, and, as discussed above, shareholder servicing. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser nor any of their affiliates receives any additional direct or indirect benefits that would preclude the Board from approving the continuation of the Management Agreement with IICO or any Investment Subadvisory Agreement with a Subadviser.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds’ shareholders. The Board considered the significant number of initiatives that IICO is undertaking to seek to rationalize the fund complex, reduce expenses and enhance performance.

Performance of the Funds and Costs of Services Provided

The Board considered the performance of each Fund and the costs of the services provided, focusing on a number of Funds that the independent fee consultant had identified. Specifically, the Board examined the investment performance of each Fund, including the percentile ranking of each Fund over various periods of time. The Board also examined the performance of each Fund against its respective Lipper index for the same periods. After extensively reviewing all of the performance information provided, the Board concluded that the Funds’ performance in each asset class was acceptable. Although the performance of some of the focus Funds identified by the independent fee consultant lagged that of their peers or respective Lipper index, the Board recognized that IICO, or the applicable Subadviser, had taken, or was taking, steps to address that underperformance, and determined to continue to monitor closely the performance of those Funds.

The Board also considered the expenses and expense ratio of each Fund, and the expense limitation arrangements entered into by IICO in light of the services provided by IICO and each Subadviser. The Board also compared each Fund’s expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to other accounts in the same asset class for certain Funds. In that regard, the Board noted that IICO performs significant additional services for the Funds as compared to those other accounts. The Board also took into account the information on IICO’s profitability in managing the Funds, including the methodology used to calculate profitability. The Board finally considered the amount of assets in each Fund, each Fund’s average account size and how those factors affect the Funds’ expense ratios, noting that, as the Funds’ assets have increased or decreased over time, the expense ratios of the Funds generally have fallen or risen, respectively. After completing this examination, the Board concluded that each Fund’s expenses are appropriate at the current time.

Independent Fee Consultant Review

Independent legal counsel, on behalf of the Independent Trustees, engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO to the Funds. The independent fee consultant’s review addressed the following fee-related factors:

1. The nature, extent and quality of IICO’s services to the Funds;

2. Management fees and expenses in the context of performance;

3. Product category expenses, including peers;

4. Profit margins of IICO’s parent from supplying such services;

5. Subadviser and institutional fee analyses; and

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

2017 SEMIANNUAL REPORT 229

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

Summary Findings

The report stated that IICO delivered reasonable levels of performance in the longer-term periods and reasonable levels of service to the Funds in relation to its management fees as compared to the investment advisers of comparable funds. For the 36 months ended March 31, 2017, approximately 9% of the funds within the Waddell & Reed Fund Complex (including the Funds) were in the top quartile of performance and 33% of such funds were in the top two quartiles of performance, and that short-term performance of such funds were showing signs of improvement. Specifically, the report noted that 42% of the funds were in the top two quartiles in the one-year period, and that 32% of all such funds had improving performance in their one-year period. The independent fee consultant noted that the funds’ performance appeared to be grounded in a number of institutional competitive advantages at IICO, including economic analysis, investment management depth, ability to attract top talent, strategic vision, performance-focused culture, and an effective trading infrastructure.

The report further indicated that total expenses of the Funds, on average, were 2% over the average total expenses of their respective Broadridge Expense Group peers and 3% below the average total expenses for their Broadridge Expense Universes. The management fees for the funds were 1% over the average management fees of their respective Broadridge Expense Group peers and 3% over the average management fees for their Broadridge Expense Universes.

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

The report stated that while it was difficult to confirm overall economies of scale, it was clear that the funds’ shareholders generally are benefitting from lower expenses as the funds’ assets grow through management fee breakpoints, decline in transfer agency expenses, decline in custody contract rates and declines in other non-management expenses.

The report also noted that the overall profitability of IICO’s parent is near the median of most similarly-sized, publicly-traded peers, but appears adequate to enable IICO to continue to provide quality support to the funds and their shareholders. Finally, the report noted that IICO has continued to invest time in board mergers and fund mergers, which could help drive down expenses for shareholders.

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

Conclusions

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

230 SEMIANNUAL REPORT 2017

PROXY VOTING INFORMATION Ivy Funds

Proxy Voting Guidelines

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

Proxy Voting Records

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

QUARTERLY PORTFOLIO SCHEDULE INFORMATION Ivy Funds

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

• On the SEC’s website at www.sec.gov.

• For review and copy at the SEC’s Public Reference Room in Washington, DC. Information on the operations of the Public Reference Room may be obtained by calling 1.800.SEC.0330.

TO ALL TRADITIONAL IRA PLANHOLDERS: Ivy Funds

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

2017 SEMIANNUAL REPORT 231

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2017 SEMIANNUAL REPORT 233

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234 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 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 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

INDEX FUNDS

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

Ivy ProShares MSCI ACWI Index Fund

SPECIALITY FUNDS

Ivy Apollo Multi-Asset Income Fund

Ivy Asset Strategy Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Natural Resources Fund

Ivy LaSalle Global Real Estate Fund

Ivy LaSalle Global Risk-Managed Real Estate Fund

Ivy Advantus Real Estate Securities Fund

Ivy Science and Technology Fund

FIXED INCOME FUNDS

Ivy Apollo Strategic Income Fund

Ivy Advantus Bond Fund

Ivy California Municipal High Income Fund

Ivy Crossover Credit Fund

Ivy Global Bond Fund

Ivy Government 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 Fund

Ivy PineBridge High Yield 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 235

SEMIANN-IVYFUNDS (9-17)

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

1

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

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

ITEM 12.   EXHIBITS.

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

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

Attached hereto as Exhibit 99.CERT.

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

Attached hereto as Exhibit 99.906CERT.

2

SIGNATURES

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

IVY FUNDS

(Registrant)

By	/s/Jennifer K. Dulski
	Jennifer K. Dulski, Secretary

Date: December 7, 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: December 7, 2017

By	/s/Joseph W. Kauten
	Joseph W. Kauten, Vice President and Principal Financial Officer

Date: December 7, 2017

EX-99.CERT

EXHIBIT 99.CERT

CERTIFICATION

I, Philip J. Sanders, certify that:

1. I have reviewed this report on Form N-CSR of Ivy Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that the material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 7, 2017	/s/ Philip J. Sanders
	Philip J. Sanders, Principal Executive Officer

CERTIFICATION

I, Joseph W. Kauten, certify that:

1. I have reviewed this report on Form N-CSR of Ivy Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that the material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 7, 2017	/s/ Joseph W. Kauten
	Joseph W. Kauten, Principal Financial Officer

EX-99.906CERT

EXHIBIT 99.906 CERT

CERTIFICATION UNDER SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

Philip J. Sanders, Principal Executive Officer, and Joseph W. Kauten, Principal Financial Officer of Ivy Funds (the “Registrant”), each certify to the best of his knowledge that:

1. The Registrant’s periodic report on Form N-CSR for the period covered by the report (the “Form N-CSR”) fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended; and

2. The information contained in the Form N-CSR fairly represents, in all material respects, the financial condition and results of operation of the Registrant.

This certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document. A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to the Registrant and will be retained and furnished to the U.S. Securities and Exchange Commission or its staff upon request.

By	/s/ Philip J. Sanders
	Philip J. Sanders, Principal Executive Officer

Date: December 7, 2017

By	/s/ Joseph W. Kauten
	Joseph W. Kauten, Principal Financial Officer

Date: December 7, 2017