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, 2018

ITEM 1. REPORTS TO STOCKHOLDERS.

  Semiannual Report   SEPTEMBER 30, 2018

Ticker

Class A

Class B

Class C

Class E

Class I

Class N

Class R

Class Y

IVY FUNDS

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 Securian Real Estate Securities Fund

IRSAX

IRSBX

IRSCX

IREEX

IREIX

IRSEX

IRSRX

IRSYX

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 Asset Strategy Fund	8
Ivy Balanced Fund	14
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
Ivy Securian Real Estate Securities Fund	37
Statements of Assets and Liabilities	39
Statements of Operations	41
Statements of Changes in Net Assets	43
Financial Highlights	46
Notes to Financial Statements	62
Renewal of Investment Management Agreements	82
Proxy Voting Information	85
Quarterly Portfolio Schedule Information	85
IRA Disclosure	85

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

2

PRESIDENT’S LETTER IVY FUNDS

	SEPTEMBER 30, 2018 (UNAUDITED)
Philip J. Sanders, CFA

Dear Shareholder,

While most of the period remained relatively calm, market volatility returned toward the end of the timeframe. As 2018 progressed, trade disputes, geopolitical tensions and uncertain global growth rates provided a choppy ride for investors.

Economic growth is poised to finish 2018 on solid footing, as global inflation remains somewhat tepid. We believe global gross domestic product (GDP) is on track for a 3.7% growth rate in 2018, taking into account some minor downward revisions to our forecast because of isolated emerging market weakness.

The U.S. continues to provide a strong foundation across the global economic stage. Domestic capital expenditures (capex) are solid and small business confidence is at an all-time high. In addition, consumer spending has held up well despite higher gasoline prices. We believe the U.S. growth rate will average around 3% annualized in 2018.

The deterioration in eurozone economic data seems to be waning following an agreement between the U.S. and European Union (EU) to discuss a reduction in tariffs on industrial goods. Brexit negotiations between the U.K. and EU continue to be choppy, which has caused some delays in anticipated capex spending for the eurozone. While we believe the two parties will come to a resolution for the U.K.’s exit from the EU prior to the March 2019 deadline, the ongoing negotiations may cause lingering economic tumult until a deal can be reached. We expect eurozone GDP growth at an average annual rate around 2% in 2018.

While the European Central Bank reduced the amount of its asset purchases during the third quarter, it has committed to keeping rates low for an extended period. We think that decision is likely to continue to support the EU economy. In addition, the Bank of England recently raised interest rates and we think it is set to continue increasing rates gradually, barring any unforeseen Brexit issues.

Much attention of late has been focused on emerging markets. China’s economy has been weaker because of a combination of deleveraging and the institution of new pollution controls on select industries. These factors, coupled with concerns about an escalating trade war with the U.S., have pushed China’s policymakers to begin to ease policy. We believe recent announcements of tax cuts and increased infrastructure spending in addition to lower interest rates will stabilize China’s economy during the fourth quarter.

Currency crises plagued Turkey and Argentina throughout the third quarter, which sent tremors through other emerging market economies, including South Africa. Emerging markets continue to face headwinds from international trade uncertainty and a strong U.S. dollar. We believe emerging

markets continue to offer a sound longer term fundamental outlook; however, market volatility is likely to persist until there is more clarity surrounding potential risks.

Overall, expanding valuations and corporate earnings growth have been key drivers in the equity markets. We believe continued earnings growth will need to carry more of the burden going forward. We see potential catalysts for growth in several areas and industries and our team continues to seek investment opportunities around the globe.

We remain attuned to a range of risks investors may face in the current environment, and believe it is important to stay focused on the fundamentals and merits of individual market sectors, industries and companies when making investment decisions. Those fundamentals historically have tended to outweigh external factors such as government policies and regulations. While those can affect every business and investor, we think the innovation and management skill within individual companies ultimately drive long-term stock prices.

Economic Snapshot

	9/30/2018		3/31/2018
S&P 500 Index		2,913.98		2,640.87
MSCI EAFE Index		1,973.60		2,005.67
10-Year Treasury Yield		3.05%		2.74%
U.S. unemployment rate		3.7%		4.1%
30-year fixed mortgage rate		4.72%		4.44%
Oil price per barrel	$	73.25	$	64.94

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.

2018 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, 2018.

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, if your Fund account balance is

below $650 on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value as such additional expenses are not reflected in the information provided in the following table. Additional fees have the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), exchange fees or account fees. Therefore, the second section in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expenses paid may be impacted by expense reduction arrangements. If those arrangements had not been in place, expenses paid would have been higher. See Note 6 to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy Asset Strategy Fund
Class A	$	1,000	$	1,046.80	$	5.94	$	1,000	$	1,019.25	$	5.86		1.18%
Class B**	$	1,000	$	1,042.90	$	9.91	$	1,000	$	1,015.42	$	9.77		1.95%
Class C	$	1,000	$	1,043.50	$	9.30	$	1,000	$	1,015.99	$	9.17		1.83%
Class E	$	1,000	$	1,046.90	$	5.42	$	1,000	$	1,019.78	$	5.35		1.08%	(3)
Class I	$	1,000	$	1,048.10	$	4.61	$	1,000	$	1,020.54	$	4.55		0.92%
Class N	$	1,000	$	1,048.50	$	3.79	$	1,000	$	1,021.33	$	3.74		0.77%
Class R	$	1,000	$	1,045.30	$	7.67	$	1,000	$	1,017.62	$	7.57		1.51%
Class Y	$	1,000	$	1,046.90	$	5.83	$	1,000	$	1,019.34	$	5.76		1.16%

See footnotes on page 6 and 7.

4 SEMIANNUAL REPORT 2018

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy Balanced Fund
Class A	$	1,000	$	1,069.60	$	5.59	$	1,000	$	1,019.63	$	5.45		1.08%
Class B**	$	1,000	$	1,065.40	$	9.60	$	1,000	$	1,015.79	$	9.37		1.85%
Class C	$	1,000	$	1,065.60	$	9.30	$	1,000	$	1,016.09	$	9.07		1.79%
Class E***	$	1,000	$	1,070.00	$	4.86	$	1,000	$	1,020.33	$	4.75		0.94%
Class I	$	1,000	$	1,070.90	$	4.35	$	1,000	$	1,020.85	$	4.24		0.84%
Class N	$	1,000	$	1,071.60	$	3.63	$	1,000	$	1,021.59	$	3.54		0.69%
Class R	$	1,000	$	1,068.00	$	7.44	$	1,000	$	1,017.88	$	7.26		1.43%
Class Y	$	1,000	$	1,069.30	$	5.59	$	1,000	$	1,019.63	$	5.45		1.08%
Ivy Energy Fund
Class A	$	1,000	$	1,129.00	$	7.56	$	1,000	$	1,018.01	$	7.16		1.41%
Class B**	$	1,000	$	1,123.90	$	11.47	$	1,000	$	1,014.23	$	10.88		2.16%
Class C	$	1,000	$	1,125.10	$	11.26	$	1,000	$	1,014.49	$	10.68		2.11%
Class E***	$	1,000	$	1,130.00	$	6.39	$	1,000	$	1,019.09	$	6.06		1.19%
Class I	$	1,000	$	1,130.90	$	5.65	$	1,000	$	1,019.80	$	5.35		1.05%	(4)
Class N	$	1,000	$	1,131.10	$	5.01	$	1,000	$	1,020.35	$	4.75		0.94%
Class R	$	1,000	$	1,127.50	$	8.94	$	1,000	$	1,016.67	$	8.47		1.68%
Class Y	$	1,000	$	1,128.80	$	7.13	$	1,000	$	1,018.33	$	6.76		1.34%
Ivy LaSalle Global Real Estate Fund
Class A	$	1,000	$	1,050.20	$	8.20	$	1,000	$	1,017.07	$	8.07		1.60%	(5)
Class B**	$	1,000	$	1,046.60	$	11.36	$	1,000	$	1,013.99	$	11.18		2.21%
Class C	$	1,000	$	1,046.10	$	11.97	$	1,000	$	1,013.35	$	11.78		2.34%
Class I	$	1,000	$	1,052.50	$	5.85	$	1,000	$	1,019.38	$	5.76		1.13%	(4)
Class N	$	1,000	$	1,052.50	$	5.85	$	1,000	$	1,019.36	$	5.76		1.14%	(4)
Class R	$	1,000	$	1,048.40	$	9.73	$	1,000	$	1,015.61	$	9.57		1.89%
Class Y	$	1,000	$	1,050.10	$	7.89	$	1,000	$	1,017.41	$	7.77		1.53%
Ivy LaSalle Global Risk-Managed Real Estate Fund
Class A	$	1,000	$	1,057.50	$	8.23	$	1,000	$	1,017.11	$	8.07		1.59%	(5)
Class B**	$	1,000	$	1,053.10	$	11.91	$	1,000	$	1,013.47	$	11.68		2.31%
Class C	$	1,000	$	1,053.80	$	12.01	$	1,000	$	1,013.38	$	11.78		2.33%
Class I	$	1,000	$	1,059.50	$	6.38	$	1,000	$	1,018.83	$	6.26		1.24%	(6)
Class N	$	1,000	$	1,059.50	$	6.38	$	1,000	$	1,018.85	$	6.26		1.24%	(6)
Class R	$	1,000	$	1,055.40	$	10.17	$	1,000	$	1,015.15	$	9.97		1.98%
Class Y	$	1,000	$	1,057.40	$	8.13	$	1,000	$	1,017.12	$	7.97		1.58%	(5)

See footnotes on page 6 and 7.

2018 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 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy Natural Resources Fund
Class A	$	1,000	$	1,047.90	$	8.09	$	1,000	$	1,017.20	$	7.97		1.57%
Class B**	$	1,000	$	1,041.00	$	15.21	$	1,000	$	1,010.21	$	14.98		2.96%
Class C	$	1,000	$	1,046.20	$	10.33	$	1,000	$	1,015.00	$	10.18		2.01%
Class E	$	1,000	$	1,049.20	$	6.56	$	1,000	$	1,018.71	$	6.46		1.27%
Class I	$	1,000	$	1,050.30	$	5.74	$	1,000	$	1,019.47	$	5.65		1.12%
Class N	$	1,000	$	1,051.40	$	4.82	$	1,000	$	1,020.37	$	4.75		0.94%
Class R	$	1,000	$	1,047.90	$	8.70	$	1,000	$	1,016.60	$	8.57		1.69%
Class Y	$	1,000	$	1,049.30	$	6.87	$	1,000	$	1,018.33	$	6.76		1.34%
Ivy Science and Technology Fund
Class A	$	1,000	$	1,127.50	$	6.38	$	1,000	$	1,019.03	$	6.06		1.20%
Class B**	$	1,000	$	1,122.80	$	11.04	$	1,000	$	1,014.71	$	10.48		2.07%	(7)
Class C	$	1,000	$	1,123.30	$	10.40	$	1,000	$	1,015.30	$	9.87		1.95%
Class E	$	1,000	$	1,126.40	$	7.44	$	1,000	$	1,018.05	$	7.06		1.40%	(8)
Class I	$	1,000	$	1,128.80	$	5.32	$	1,000	$	1,020.09	$	5.05		0.99%
Class N	$	1,000	$	1,129.70	$	4.37	$	1,000	$	1,020.93	$	4.14		0.83%
Class R	$	1,000	$	1,125.40	$	8.40	$	1,000	$	1,017.19	$	7.97		1.57%
Class Y	$	1,000	$	1,127.60	$	6.49	$	1,000	$	1,019.01	$	6.16		1.20%	(9)
Ivy Securian Real Estate Securities Fund
Class A	$	1,000	$	1,081.40	$	7.60	$	1,000	$	1,017.81	$	7.36		1.45%
Class B**	$	1,000	$	1,075.40	$	12.87	$	1,000	$	1,012.71	$	12.48		2.46%
Class C	$	1,000	$	1,077.00	$	11.42	$	1,000	$	1,014.09	$	11.08		2.19%
Class E	$	1,000	$	1,081.10	$	7.39	$	1,000	$	1,017.92	$	7.16		1.42%
Class I	$	1,000	$	1,083.30	$	5.62	$	1,000	$	1,019.68	$	5.45		1.07%
Class N	$	1,000	$	1,084.40	$	4.79	$	1,000	$	1,020.52	$	4.65		0.91%
Class R	$	1,000	$	1,080.40	$	8.63	$	1,000	$	1,016.74	$	8.37		1.66%
Class Y	$	1,000	$	1,082.20	$	6.66	$	1,000	$	1,018.64	$	6.46		1.28%

* 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, 2018, 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.

*** Class share is closed to investment.

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

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

(3) Annualized expense ratio based on the period excluding litigation expenses was 1.00%.

(4) Annualized expense ratio based on the period excluding reorganization expenses was 1.05%.

(5) Annualized expense ratio based on the period excluding reorganization expenses was 1.51%.

6 SEMIANNUAL REPORT 2018

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

(6) Annualized expense ratio based on the period excluding reorganization expenses was 1.16%.

(7) Annualized expense ratio based on the period excluding reorganization expenses was 2.03%.

(8) Annualized expense ratio based on the period excluding reorganization expenses was 1.30%.

(9) Annualized expense ratio based on the period excluding reorganization expenses was 1.20%.

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

2018 SEMIANNUAL REPORT 7

PORTFOLIO HIGHLIGHTS IVY ASSET STRATEGY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	71.9%
Information Technology	19.1%
Financials	11.5%
Industrials	9.8%
Consumer Staples	8.5%
Consumer Discretionary	8.2%
Health Care	7.0%
Energy	5.3%
Materials	1.6%
Telecommunication Services	0.9%
Bullion (Gold)	4.7%
Bonds	21.3%
Corporate Debt Securities	11.1%
Loans	4.3%
United States Government Obligations	4.1%
Other Government Securities	1.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.1%

Country Weightings

North America	52.7%
United States	51.7%
Other North America	1.0%
Europe	24.0%
France	5.7%
United Kingdom	4.2%
Switzerland	3.5%
Netherlands	3.5%
Other Europe	7.1%
Pacific Basin	15.1%
China	4.5%
Japan	3.6%
Other Pacific Basin	7.0%
Bullion (Gold)	4.7%
South America	1.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.1%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Microsoft Corp.	United States	Information Technology	Systems Software
Pfizer, Inc.	United States	Health Care	Pharmaceuticals
Amazon.com, Inc.	United States	Consumer Discretionary	Internet & Direct Marketing Retail
AIA Group Ltd.	Hong Kong	Financials	Life & Health Insurance
Visa, Inc., Class A	United States	Information Technology	Data Processing & Outsourced Services
Airbus SE	France	Industrials	Aerospace & Defense
QUALCOMM, Inc.	United States	Information Technology	Semiconductors
Intuit, Inc.	United States	Information Technology	Application Software
Home Depot, Inc. (The)	United States	Consumer Discretionary	Home Improvement Retail
Adobe Systems, Inc.	United States	Information Technology	Application Software

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

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

8 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 0.9%
Magna International, Inc. (A)		525	$	27,554
Automobile Manufacturers – 1.3%
Suzuki Motor Corp. (A)		724		41,488
Broadcasting – 1.1%
Discovery Holding Co., Class A (B)(C)		1,122		35,895
Home Improvement Retail – 1.6%
Home Depot, Inc. (The)		235		48,636
Internet & Direct Marketing Retail – 2.2%
Amazon.com, Inc. (B)		34		68,479
Leisure Products – 0.2%
Media Group Holdings LLC, Series H (B)(D)(E)(F)(G)		640		—	*
Media Group Holdings LLC, Series T (B)(D)(E)(F)(G)		80		5,741
				5,741
Restaurants – 0.9%
Compass Group plc (A)		1,237		27,513
Total Consumer Discretionary – 8.2%				255,306
Consumer Staples
Brewers – 0.9%
InBev N.V. (A)		335		29,266
Household Products – 1.0%
Procter & Gamble Co. (The)		371		30,890
Hypermarkets & Super Centers – 1.4%
Wal-Mart Stores, Inc.		466		43,768
Packaged Foods & Meats – 2.1%
Danone S.A. (A)		350		27,117
Nestle S.A., Registered Shares (A)		456		38,017
				65,134
Soft Drinks – 1.5%
Coca-Cola Co. (The)		1,046		48,313
Tobacco – 1.6%
ITC Ltd. (A)		3,078		12,641
Philip Morris International, Inc.		463		37,767
				50,408
Total Consumer Staples – 8.5%				267,779
Energy
Integrated Oil & Gas – 1.5%
Royal Dutch Shell plc, Class A (A)		1,373		47,163
Oil & Gas Equipment & Services – 1.6%
Halliburton Co.		589		23,887
Schlumberger Ltd.		432		26,288
				50,175

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Exploration & Production – 2.2%
Cabot Oil & Gas Corp.		662	$	14,898
EOG Resources, Inc.		255		32,480
Noble Energy, Inc.		659		20,546
				67,924
Total Energy – 5.3%				165,262
Financials
Consumer Finance – 0.8%
ORIX Corp. (A)		1,518		24,614
Diversified Banks – 5.8%
Axis Bank Ltd. (A)		3,641		30,805
China Construction Bank Corp. (A)		31,939		27,907
Industrial and Commercial Bank of China Ltd., H Shares (A)		37,372		27,307
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)		4,537		28,317
Sberbank of Russia PJSC ADR (A)		934		11,842
Swedbank AB (A)		1,238		30,697
UniCredit S.p.A. (A)		1,420		21,381
				178,256
Life & Health Insurance – 2.1%
AIA Group Ltd. (A)		7,296		65,146
Multi-Sector Holdings – 1.0%
Berkshire Hathaway, Inc., Class B (B)		153		32,673
Regional Banks – 1.8%
KeyCorp		1,503		29,889
PNC Financial Services Group, Inc. (The)		204		27,791
				57,680
Total Financials – 11.5%				358,369
Health Care
Biotechnology – 1.6%
BioMarin Pharmaceutical, Inc. (B)		340		32,982
Sarepta Therapeutics, Inc. (B)		99		15,934
				48,916
Health Care Equipment – 1.4%
Medtronic plc		432		42,515
Managed Health Care – 0.7%
UnitedHealth Group, Inc.		87		23,246
Pharmaceuticals – 3.3%
Bayer AG (A)		272		24,130
Elanco Animal Health, Inc. (B)(C)		88		3,083
Pfizer, Inc.		1,723		75,928
				103,141
Total Health Care – 7.0%				217,818
Industrials
Aerospace & Defense – 3.6%
Airbus SE (A)		441		55,405

COMMON STOCKS (Continued)	Shares		Value
Aerospace & Defense (Continued)
Lockheed Martin Corp.		73	$	25,345
Northrop Grumman Corp.		100		31,616
				112,366
Construction & Engineering – 2.0%
Larsen & Toubro Ltd. (A)		1,794		31,485
Vinci (A)		306		29,108
				60,593
Construction Machinery & Heavy Trucks – 1.0%
Caterpillar, Inc.		204		31,047
Electrical Components & Equipment – 0.8%
Schneider Electric S.A. (A)		326		26,241
Railroads – 1.6%
Kansas City Southern		207		23,435
Union Pacific Corp.		156		25,395
				48,830
Trading Companies & Distributors – 0.8%
Ferguson plc (A)		280		23,796
Total Industrials – 9.8%				302,873
Information Technology
Application Software – 3.1%
Adobe Systems, Inc. (B)		180		48,609
Intuit, Inc.		214		48,667
				97,276
Data Processing & Outsourced Services – 3.0%
FleetCor Technologies, Inc. (B)		142		32,321
Visa, Inc., Class A		429		64,358
				96,679
Electronic Equipment & Instruments – 0.6%
Keyence Corp. (A)		32		18,467
Internet Software & Services – 3.0%
Alibaba Group Holding Ltd. ADR (B)		172		28,289
Alphabet, Inc., Class A (B)		28		33,255
Baidu.com, Inc. ADR (B)		135		30,890
				92,434
Semiconductor Equipment – 1.7%
Applied Materials, Inc.		710		27,432
ASML Holding N.V., Ordinary Shares (A)		145		27,128
				54,560
Semiconductors – 2.8%
QUALCOMM, Inc.		751		54,065
Taiwan Semiconductor Manufacturing Co. Ltd. (A)		3,928		33,769
				87,834
Systems Software – 3.0%
Microsoft Corp.		814		93,082

2018 SEMIANNUAL REPORT 9

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Technology Hardware, Storage & Peripherals – 1.9%
Apple, Inc.		167	$	37,763
Samsung Electronics Co. Ltd. (A)		554		23,185
				60,948
Total Information Technology – 19.1%				601,280
Materials
Diversified Metals & Mining – 1.6%
BHP Billiton plc (A)		1,050		22,867
Glencore International plc (A)		6,120		26,460
				49,327
Total Materials – 1.6%				49,327
Telecommunication Services
Integrated Telecommunication Services – 0.9%
China Unicom Ltd. (A)		24,516		28,874
Total Telecommunication Services – 0.9%				28,874
TOTAL COMMON STOCKS – 71.9%			$	2,246,888
(Cost: $2,374,506)
CORPORATE DEBT SECURITIES	Principal
Consumer Discretionary
Cable & Satellite – 1.3%
Altice France S.A.,
8.125%, 2–1–27 (H)	$	9,600		9,864
Altice S.A.:
7.750%, 5–15–22 (C)(H)		16,552		16,109
7.625%, 2–15–25 (C)(H)		17,344		15,718
				41,691
Total Consumer Discretionary – 1.3%				41,691
Energy
Integrated Oil & Gas – 0.4%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.),
8.750%, 5–23–26		11,781		12,900
Total Energy – 0.4%				12,900
Financials
Diversified Banks – 5.1%
Banco Santander (Mexico) S.A.,
5.950%, 10–1–28 (H)		3,750		3,806
Barclays plc,
7.875%, 12–29–49		37,158		38,412
BNP Paribas S.A.,
7.625%, 12–29–49 (H)		10,190		10,699
HSBC Holdings plc,
6.875%, 12–29–49		14,580		15,090
ING Groep N.V., Certicaaten Van Aandelen,
6.000%, 10–16–66		16,395		16,352
Intesa Sanpaolo S.p.A.,
5.710%, 1–15–26 (H)		10,320		9,411

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Banks (Continued)
Royal Bank of Scotland Group plc (The):
7.500%, 12–29–49	$	5,883	$	6,023
8.625%, 12–29–49		32,157		34,448
Societe Generale Group,
7.375%, 12–29–49 (H)		18,932		19,524
Standard Chartered plc,
7.500%, 12–29–49 (H)		9,224		9,478
				163,243
Diversified Capital Markets – 0.6%
Credit Suisse Group AG,
7.125%, 7–29–66		18,601		19,066
Investment Banking & Brokerage – 0.5%
Goldman Sachs Group, Inc. (The) (3-Month U.S. LIBOR plus 117 bps),
3.484%, 5–15–26 (I)		15,554		15,564
Specialized Finance – 0.1%
Syngenta Finance N.V.:
4.441%, 4–24–23 (H)		1,179		1,172
5.182%, 4–24–28 (H)		1,770		1,692
				2,864
Total Financials – 6.3%				200,737
Health Care
Pharmaceuticals – 0.2%
Teva Pharmaceutical Finance Netherlands III B.V. (GTD by Teva Pharmaceutical Industries Ltd.),
3.150%, 10–1–26		6,656		5,539
Total Health Care – 0.2%				5,539
Industrials
Aerospace & Defense – 0.8%
KLX, Inc.,
5.875%, 12–1–22 (H)		25,680		26,528
Security & Alarm Services – 0.7%
Prime Security Services Borrower LLC,
9.250%, 5–15–23 (H)		21,238		22,714
Total Industrials – 1.5%				49,242
Information Technology
Data Processing & Outsourced Services – 0.3%
Alliance Data Systems Corp.,
5.375%, 8–1–22 (H)		8,140		8,201
Total Information Technology – 0.3%				8,201

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Telecommunication Services
Integrated Telecommunication Services – 1.0%
Frontier Communications Corp.:
7.625%, 4–15–24	$	7,881	$	5,083
6.875%, 1–15–25		16,119		9,798
11.000%, 9–15–25		11,820		9,216
9.000%, 8–15–31		7,881		5,020
				29,117
Total Telecommunication Services – 1.0%				29,117
Utilities
Electric Utilities – 0.1%
Cemig Geracao e Transmissao S.A.,
9.250%, 12–5–24 (H)		3,919		4,037
Total Utilities – 0.1%				4,037
TOTAL CORPORATE DEBT SECURITIES – 11.1%			$	351,464
(Cost: $355,227)
OTHER GOVERNMENT SECURITIES (J)
Argentina – 1.3%
Province of Mendoza,
8.375%, 5–19–24		15,788		13,815
Republic of Argentina:
4.625%, 1–11–23		24,469		20,652
5.875%, 1–11–28		7,900		6,257
				40,724
Luxembourg – 0.5%
Rumo Luxembourg S.a.r.l.,
7.375%, 2–9–24 (H)		14,899		15,222
TOTAL OTHER GOVERNMENT SECURITIES – 1.8%			$	55,946
(Cost: $61,697)
LOANS (I)
Financials
Financial Exchanges & Data – 0.3%
Financial & Risk U.S. Holdings, Inc.,
0.000%, 10–1–25 (K)		7,816		7,795
Investment Banking & Brokerage – 0.1%
Jane Street Group LLC (ICE LIBOR plus 375 bps),
5.992%, 8–25–22		3,075		3,085
Property & Casualty Insurance – 0.9%
Hub International Ltd. (ICE LIBOR plus 300 bps),
5.335%, 4–25–25		1,945		1,949
USI, Inc. (ICE LIBOR plus 300 bps),
5.386%, 5–16–24		27,359		27,365
				29,314

10 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

LOANS (I) (Continued)	Principal		Value
Specialized Finance – 0.4%
Mayfield Agency Borrower, Inc. (ICE LIBOR plus 450 bps),
6.742%, 2–28–25 (G)	$	11,122	$	11,178
Total Financials – 1.7%				51,372
Health Care
Health Care Facilities – 0.3%
Surgery Center Holdings, Inc. (ICE LIBOR plus 325 bps),
5.570%, 8–31–24		9,019		9,015
Health Care Services – 0.2%
Heartland Dental LLC,
0.000%, 4–30–25 (K)		772		772
Heartland Dental LLC (ICE LIBOR plus 375 bps),
5.992%, 4–30–25		5,134		5,134
				5,906
Health Care Technology – 0.3%
Verscend Holding Corp. (ICE LIBOR plus 450 bps),
6.742%, 8–27–25		10,800		10,886
Total Health Care – 0.8%				25,807
Industrials
Construction & Engineering – 0.3%
McDermott Technology (Americas), Inc. (ICE LIBOR plus 500 bps),
7.242%, 5–10–25		9,785		9,917
Total Industrials – 0.3%				9,917
Information Technology
Application Software – 0.4%
Avaya, Inc. (ICE LIBOR plus 425 bps),
6.408%, 12–15–24		11,731		11,827
Total Information Technology – 0.4%				11,827
Materials
Construction Materials – 0.5%
Hillman Group, Inc. (The),
0.000%, 5–31–25 (K)		3,908		3,862
Hillman Group, Inc. (The) (ICE LIBOR plus 350 bps),
5.742%, 5–31–25		11,755		11,617
				15,479
Total Materials – 0.5%				15,479

LOANS (I) (Continued)	Principal		Value
Telecommunication Services
Integrated Telecommunication Services – 0.6%
West Corp. (3-Month ICE LIBOR plus 400 bps),
6.242%, 10–10–24	$	19,676	$	19,605
Total Telecommunication Services – 0.6%				19,605
TOTAL LOANS – 4.3%			$	134,007
(Cost: $133,469)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations – 3.1%
U.S. Treasury Notes:
0.125%, 4–15–21		28,435		27,853
0.625%, 1–15–26		44,570		43,621
1.000%, 2–15–46		24,794		24,466
				95,940
Treasury Obligations – 1.0%
U.S. Treasury Bonds,
2.750%, 8–15–47		35,782		32,753
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 4.1%			$	128,693
(Cost: $135,105)
BULLION – 4.7%	Troy Ounces
Gold		122		145,900
(Cost: $144,464)
SHORT-TERM SECURITIES	Principal
Commercial Paper (L) – 2.7%
Comcast Corp.:
2.352%, 10–9–18	$	10,000		9,992
2.760%, 10–16–18		5,000		4,994
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.),
2.130%, 10–29–18		6,000		5,987
Diageo Capital plc (GTD by Diageo plc),
2.870%, 10–11–18		7,000		6,994
McCormick & Co., Inc.:
2.230%, 10–1–18		6,823		6,821
2.251%, 10–2–18		5,000		4,999
Northern Illinois Gas Co.,
2.200%, 10–12–18		10,000		9,991
United Technologies Corp.,
2.600%, 11–26–18		5,000		4,980

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (L) (Continued)
Walgreens Boots Alliance, Inc.:
2.360%, 10–1–18	$	21,000	$	20,996
2.850%, 10–12–18		5,000		4,995
Wisconsin Electric Power Co.,
2.250%, 10–4–18		4,000		3,998
				84,747
Master Note – 0.0%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10–5–18 (M)		204		204
Money Market Funds – 1.3%
Dreyfus Institutional Preferred Government Money Market Fund – Institutional Shares,
2.140%, (N)(O)		40,379		40,379
Municipal Obligations – 0.0%
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004 (GTD by U.S. Bank N.A.) (BVAL plus 17 bps),
1.670%, 10–1–18 (M)		1,155		1,155
United States Government Agency Obligations – 1.2%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.170%, 10–7–18 (M)		8,000		8,000
2.200%, 10–7–18 (M)		2,500		2,500
2.220%, 10–7–18 (M)		12,000		12,000
2.240%, 10–7–18 (M)		16,500		16,500
				39,000
TOTAL SHORT-TERM SECURITIES – 5.2%			$	165,485
(Cost: $165,503)
TOTAL INVESTMENT SECURITIES – 103.1%			$	3,228,383
(Cost: $3,369,971)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (3.1)%				(97,787	)
NET ASSETS – 100.0%			$	3,130,596

Notes to Consolidated Schedule of Investments

* Not shown due to rounding.

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

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

2018 SEMIANNUAL REPORT 11

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

SEPTEMBER 30, 2018 (UNAUDITED)

(C) All or a portion of securities with an aggregate value of $41,007 are on loan.

(D) Restricted securities. At September 30, 2018, the Fund owned the following restricted securities:

Security	Acquisition Date(s)		Shares		Cost		Market Value
Media Group Holdings LLC, Series H		8–29–13 to 10–31–13		640	$	448,211	$	—	*
Media Group Holdings LLC, Series T		7–2–13 to 1–23–15		80		168,531		5,741
					$	616,742	$	5,741

The total value of these securities represented 0.2% of net assets at September 30, 2018.

(E) 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 5 of the Notes to Financial Statements.

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

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

(H) 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, 2018 the total value of these securities amounted to $174,175 or 5.6% of net assets.

(I) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. Description of the reference rate and spread, if applicable, are included in the security description.

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

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

(L) Rate shown is the yield to maturity at September 30, 2018.

(M) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(N) Investment made with cash collateral received from securities on loan.

(O) Rate shown is the annualized 7-day yield at September 30, 2018.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	249,565	$	—	$	5,741
Consumer Staples		267,779		—		—
Energy		165,262		—		—
Financials		358,369		—		—
Health Care		217,818		—		—
Industrials		302,873		—		—
Information Technology		601,280		—		—
Materials		49,327		—		—
Telecommunication Services		28,874		—		—
Total Common Stocks	$	2,241,147	$	—	$	5,741
Corporate Debt Securities		—		351,464		—
Other Government Securities		—		55,946		—
Loans		—		122,829		11,178
United States Government Obligations		—		128,693		—
Bullion		145,900		—		—
Short-Term Securities		40,379		125,106		—
Total	$	2,427,426	$	784,038	$	16,919

12 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

During the period ended September 30, 2018, securities totaling $708,640 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. 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

ICE = IntercontinentalExchange

LIBOR = London Interbank Offered Rate

TB = Treasury Bill

Country Diversification
(as a % of net assets)
United States	51.8%
France	5.7%
China	4.5%
United Kingdom	4.2%
Japan	3.6%
Netherlands	3.5%
Switzerland	3.5%
India	2.4%
Hong Kong	2.1%
Luxembourg	1.5%
Ireland	1.4%
Argentina	1.3%
Taiwan	1.1%
Italy	1.0%
Sweden	1.0%
Other Countries	4.6%
Other+	6.8%

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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 13

PORTFOLIO HIGHLIGHTS IVY BALANCED FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	68.5%
Information Technology	15.4%
Financials	11.1%
Industrials	10.2%
Health Care	10.1%
Consumer Discretionary	7.7%
Energy	7.4%
Materials	4.2%
Consumer Staples	2.4%
Bonds	29.9%
Corporate Debt Securities	20.5%
United States Government and Government Agency Obligations	8.4%
Asset-Backed Securities	0.4%
Loans	0.4%
Other Government Securities	0.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.6%

Top 10 Equity Holdings

Company	Sector	Industry
Microsoft Corp.	Information Technology	Systems Software
Union Pacific Corp.	Industrials	Railroads
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
Autodesk, Inc.	Information Technology	Application Software
Lowe’s Co., Inc.	Consumer Discretionary	Home Improvement Retail
Intercontinental Exchange, Inc.	Financials	Financial Exchanges & Data
UnitedHealth Group, Inc.	Health Care	Managed Health Care
PNC Financial Services Group, Inc. (The)	Financials	Regional Banks
MasterCard, Inc., Class A	Information Technology	Data Processing & Outsourced Services
Chevron Corp.	Energy	Integrated Oil & Gas

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

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

14 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Automotive Retail – 0.6%
O’Reilly Automotive, Inc. (A)		51	$	17,817
Casinos & Gaming – 1.6%
Las Vegas Sands, Inc.		784		46,539
General Merchandise Stores – 1.5%
Dollar General Corp.		395		43,201
Home Improvement Retail – 2.1%
Lowe’s Co., Inc.		534		61,266
Hotels, Resorts & Cruise Lines – 0.5%
Carnival Corp.		237		15,126
Restaurants – 1.4%
YUM! Brands, Inc.		454		41,282
Total Consumer Discretionary – 7.7%				225,231
Consumer Staples
Brewers – 0.4%
Anheuser-Busch InBev S.A. ADR		144		12,592
Packaged Foods & Meats – 1.2%
General Mills, Inc.		462		19,831
Hershey Foods Corp.		143		14,540
				34,371
Tobacco – 0.8%
Philip Morris International, Inc.		268		21,828
Total Consumer Staples – 2.4%				68,791
Energy
Integrated Oil & Gas – 1.8%
Chevron Corp.		423		51,737
Oil & Gas Equipment & Services – 1.6%
Schlumberger Ltd.		744		45,300
Oil & Gas Exploration & Production – 1.2%
Cimarex Energy Co.		377		35,076
Oil & Gas Storage & Transportation – 1.3%
Enterprise Products Partners L.P.		1,331		38,250
Total Energy – 5.9%				170,363
Financials
Asset Management & Custody Banks – 1.5%
Blackstone Group L.P. (The)		1,149		43,742
Diversified Banks – 2.6%
Northern Trust Corp.		439		44,866
U.S. Bancorp		572		30,184
				75,050

COMMON STOCKS (Continued)	Shares		Value
Financial Exchanges & Data – 2.1%
Intercontinental Exchange, Inc.		795	$	59,556
Investment Banking & Brokerage – 1.4%
Goldman Sachs Group, Inc. (The)		176		39,433
Other Diversified Financial Services – 1.6%
JPMorgan Chase & Co.		419		47,319
Regional Banks – 1.9%
PNC Financial Services Group, Inc. (The)		409		55,640
Total Financials – 11.1%				320,740
Health Care
Biotechnology – 2.0%
Biogen, Inc. (A)		83		29,377
BioMarin Pharmaceutical, Inc. (A)		296		28,713
				58,090
Health Care Equipment – 1.5%
Medtronic plc		448		44,094
Health Care Services – 1.0%
Laboratory Corp. of America Holdings (A)		171		29,691
Managed Health Care – 3.3%
Anthem, Inc.		130		35,502
UnitedHealth Group, Inc.		223		59,234
				94,736
Pharmaceuticals – 2.3%
Jazz Pharmaceuticals plc (A)		170		28,557
Pfizer, Inc.		836		36,860
				65,417
Total Health Care – 10.1%				292,028
Industrials
Aerospace & Defense – 2.1%
Boeing Co. (The)		100		37,041
United Technologies Corp.		176		24,600
				61,641
Agricultural & Farm Machinery – 1.1%
Deere & Co.		208		31,216
Airlines – 1.2%
Delta Air Lines, Inc.		620		35,837
Electrical Components & Equipment – 1.1%
Emerson Electric Co.		420		32,194
Environmental & Facilities Services – 0.7%
Stericycle, Inc. (A)		327		19,165
Railroads – 2.2%
Union Pacific Corp.		384		62,445

COMMON STOCKS (Continued)	Shares		Value
Research & Consulting Services – 0.7%
Verisk Analytics, Inc., Class A (A)		172	$	20,735
Trucking – 1.1%
Knight Transportation, Inc.		890		30,684
Total Industrials – 10.2%				293,917
Information Technology
Application Software – 2.1%
Autodesk, Inc. (A)		397		61,937
Data Processing & Outsourced Services – 1.8%
MasterCard, Inc., Class A		239		53,260
Semiconductor Equipment – 1.3%
Applied Materials, Inc.		933		36,043
Semiconductors – 5.8%
Broadcom Corp., Class A		196		48,359
Intel Corp.		860		40,690
Microchip Technology, Inc.		426		33,612
QUALCOMM, Inc.		638		45,948
				168,609
Systems Software – 2.2%
Microsoft Corp.		559		63,921
Technology Hardware, Storage & Peripherals – 2.2%
Apple, Inc.		275		62,079
Total Information Technology – 15.4%				445,849
Materials
Commodity Chemicals – 1.3%
LyondellBasell Industries N.V., Class A		354		36,278
Specialty Chemicals – 2.3%
Ecolab, Inc.		196		30,768
PPG Industries, Inc.		338		36,897
				67,665
Total Materials – 3.6%				103,943
TOTAL COMMON STOCKS – 66.4%			$	1,920,862
(Cost: $1,503,683)
PREFERRED STOCKS
Energy
Integrated Oil & Gas – 1.5%
Hess Corp., Convertible, 8.000%		555		44,111
Total Energy – 1.5%				44,111

2018 SEMIANNUAL REPORT 15

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

PREFERRED STOCKS (Continued)	Shares		Value
Materials
Commodity Chemicals – 0.6%
A. Schulman, Inc., Convertible, 6.000% (A)		17	$	17,078
Total Materials – 0.6%				17,078
TOTAL PREFERRED STOCKS – 2.1%			$	61,189
(Cost: $46,597)
ASSET-BACKED SECURITIES	Principal
AerCap Ireland Capital Ltd. and AerCap Global Aviation Trust:
3.500%, 1–15–25	$	2,000		1,884
3.650%, 7–21–27		4,250		3,895
3.875%, 1–23–28		2,750		2,550
American Airlines Class AA Pass Through Certificates, Series 2017-2,
3.350%, 10–15–29		4,000		3,820
TOTAL ASSET-BACKED SECURITIES – 0.4%			$	12,149
(Cost: $12,989)
CORPORATE DEBT SECURITIES
Consumer Discretionary
Auto Parts & Equipment – 0.2%
Lear Corp.,
3.800%, 9–15–27		5,250		4,871
Cable & Satellite – 0.2%
Charter Communications Operating LLC and Charter Communications Operating Capital Corp.,
5.375%, 4–1–38		1,000		968
Comcast Corp. (GTD by Comcast Cable Communicationsand NBCUniversal),
3.900%, 3–1–38		3,500		3,201
				4,169
Homebuilding – 0.0%
Toll Brothers Finance Corp.,
4.350%, 2–15–28		1,250		1,147
Hotels, Resorts & Cruise Lines – 0.2%
Marriott International, Inc.,
4.000%, 4–15–28		1,500		1,468
Royal Caribbean Cruises Ltd.,
3.700%, 3–15–28		5,000		4,634
				6,102
Internet & Direct Marketing Retail – 0.1%
Amazon.com, Inc.,
2.800%, 8–22–24		4,000		3,863
Restaurants – 0.1%
McDonalds Corp.,
4.450%, 3–1–47		1,000		980
Total Consumer Discretionary – 0.8%				21,132

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Consumer Staples
Brewers – 0.1%
Molson Coors Brewing Co.,
3.000%, 7–15–26	$	2,300	$	2,086
Distillers & Vintners – 0.1%
Bacardi Ltd.,
4.450%, 5–15–25 (B)		2,750		2,741
Drug Retail – 0.0%
CVS Health Corp.,
4.100%, 3–25–25		1,000		997
Food Distributors – 0.1%
Sysco Corp.:
3.550%, 3–15–25		1,500		1,467
4.450%, 3–15–48		1,500		1,461
				2,928
Household Products – 0.2%
Clorox Co. (The),
3.100%, 10–1–27		3,000		2,816
Colgate-Palmolive Co.,
3.700%, 8–1–47 (C)		2,500		2,357
				5,173
Tobacco – 0.2%
BAT International Finance plc,
2.750%, 6–15–20 (B)		6,400		6,333
Total Consumer Staples – 0.7%				20,258
Energy
Integrated Oil & Gas – 0.5%
Hess Corp.,
4.300%, 4–1–27		12,450		12,066
Petroleos Mexicanos,
5.350%, 2–12–28 (B)		1,500		1,414
				13,480
Oil & Gas Drilling – 0.8%
Nabors Industries Ltd., Convertible,
0.750%, 1–15–24		30,100		23,415
Oil & Gas Equipment & Services – 0.1%
Baker Hughes, a GE Co. LLC and Baker Hughes Co-Obligor, Inc.,
3.337%, 12–15–27		3,000		2,819
Oil & Gas Exploration & Production – 0.4%
Concho Resources, Inc.,
4.375%, 1–15–25		10,900		10,973
Oil & Gas Storage & Transportation – 1.5%
Colorado Interstate Gas Co.,
4.150%, 8–15–26 (B)		8,340		8,160
Hornbeck Offshore Services, Inc., Convertible,
1.500%, 9–1–19		20,013		17,636
Plains All American Pipeline L.P. and PAA Finance Corp.,
4.650%, 10–15–25		5,500		5,556

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Storage & Transportation (Continued)
Sunoco Logistics Partners Operations L.P. (GTD by Energy Transfer Partners L.P.),
4.000%, 10–1–27	$	3,000	$	2,847
Transcontinental Gas Pipe Line Co. LLC,
4.600%, 3–15–48		2,000		1,943
Williams Partners L.P.:
3.600%, 3–15–22		5,000		4,970
3.750%, 6–15–27		2,000		1,908
4.850%, 3–1–48		1,500		1,448
				44,468
Total Energy – 3.3%				95,155
Financials
Asset Management & Custody Banks – 0.4%
Ares Capital Corp.:
4.875%, 11–30–18		300		301
4.250%, 3–1–25		10,000		9,586
				9,887
Consumer Finance – 0.6%
Capital One Financial Corp.,
3.300%, 10–30–24		7,000		6,662
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.):
3.450%, 4–10–22		1,500		1,476
3.700%, 5–9–23		1,850		1,809
3.500%, 11–7–24		3,500		3,296
4.350%, 4–9–25		1,000		982
Hyundai Capital America,
2.550%, 4–3–20 (B)		2,500		2,458
				16,683
Diversified Banks – 2.7%
Australia and New Zealand Banking Group Ltd.,
4.400%, 5–19–26 (B)		11,950		11,725
Bank of America Corp.:
3.419%, 12–20–28		1,000		938
5.875%, 9–15–66		1,000		991
Bank of Montreal,
3.803%, 12–15–32		9,000		8,409
Barclays plc,
5.200%, 5–12–26		8,200		8,057
DBS Group Holdings Ltd.,
2.246%, 7–16–19 (B)		5,750		5,712
HSBC Holdings plc,
3.400%, 3–8–21		8,750		8,729
ING Bank N.V.,
2.500%, 10–1–19 (B)		2,500		2,486
Mizuho Bank Ltd.,
2.650%, 9–25–19 (B)		1,700		1,695
Santander Holdings USA, Inc.,
3.400%, 1–18–23		2,000		1,928
Societe Generale S.A.,
4.250%, 4–14–25 (B)		4,500		4,339
Standard Chartered plc,
2.250%, 4–17–20 (B)		16,600		16,287

16 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Banks (Continued)
Sumitomo Mitsui Banking Corp.,
2.450%, 1–16–20	$	2,000	$	1,982
U.S. Bancorp,
3.100%, 4–27–26		4,400		4,158
				77,436
Investment Banking & Brokerage – 1.1%
BGC Partners, Inc.,
5.375%, 12–9–19		4,500		4,571
Credit Suisse Group Funding (Guernsey) Ltd.,
2.750%, 3–26–20		6,500		6,442
Goldman Sachs Group, Inc. (The):
2.905%, 7–24–23		6,000		5,795
3.272%, 9–29–25		7,000		6,686
5.700%, 12–29–49		2,300		2,319
Morgan Stanley,
3.591%, 7–22–28		9,000		8,534
				34,347
Life & Health Insurance – 0.3%
Northwestern Mutual Life Insurance Co. (The),
3.850%, 9–30–47 (B)		5,000		4,575
Sumitomo Life Insurance Co.,
4.000%, 9–14–77 (B)		5,000		4,665
				9,240
Multi-Line Insurance – 0.3%
Aon plc (GTD by Aon Corp.),
2.800%, 3–15–21		9,500		9,330
Other Diversified Financial Services – 2.0%
Citigroup, Inc.:
5.950%, 12–29–49		14,600		14,787
6.250%, 12–29–49		7,250		7,567
JPMorgan Chase & Co.:
5.000%, 12–29–49 (C)		7,700		7,758
5.300%, 11–1–65		2,750		2,812
JPMorgan Chase & Co. (3-Month U.S. LIBOR plus 347 bps),
5.809%, 4–29–49 (D)		14,260		14,321
PennantPark Investment Corp.,
4.500%, 10–1–19		9,000		9,048
				56,293
Property & Casualty Insurance – 0.2%
Berkshire Hathaway Finance Corp. (GTD by Berkshire Hathaway, Inc.),
2.200%, 3–15–21		3,800		3,725
Markel Corp.,
3.500%, 11–1–27		4,000		3,723
				7,448
Regional Banks – 1.0%
Citizens Financial Group, Inc.,
3.750%, 7–1–24		14,900		14,286
PNC Bank N.A.,
3.250%, 6–1–25		6,500		6,300

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Regional Banks (Continued)
SunTrust Banks, Inc.,
5.625%, 12–29–49	$	7,600	$	7,724
				28,310
Specialized Finance – 0.3%
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.,
5.450%, 6–15–23 (B)		5,300		5,567
Syngenta Finance N.V.,
5.182%, 4–24–28 (B)		3,300		3,156
				8,723
Total Financials – 8.9%				257,697
Health Care
Biotechnology – 0.2%
Amgen, Inc.,
2.125%, 5–1–20		7,000		6,890
Health Care Distributors – 0.1%
AmerisourceBergen Corp.,
3.450%, 12–15–27		3,000		2,798
Health Care Equipment – 0.2%
Zimmer Holdings, Inc.,
2.700%, 4–1–20		4,650		4,605
Health Care Services – 0.3%
Quest Diagnostics, Inc.,
3.450%, 6–1–26		8,220		7,805
Health Care Supplies – 0.2%
Shire Acquisitions Investments Ireland Designated Activity Co.,
2.875%, 9–23–23		7,000		6,675
Pharmaceuticals – 0.7%
Celgene Corp.,
3.450%, 11–15–27		4,500		4,199
Forest Laboratories, Inc.,
5.000%, 12–15–21 (B)		7,500		7,778
Johnson & Johnson,
3.400%, 1–15–38		9,000		8,373
				20,350
Total Health Care – 1.7%				49,123
Industrials
Aerospace & Defense – 0.3%
Huntington Ingalls Industries, Inc.,
3.483%, 12–1–27		4,000		3,746
Northrop Grumman Corp.,
3.250%, 1–15–28		5,500		5,172
				8,918
Agricultural & Farm Machinery – 0.1%
CNH Industrial N.V.,
3.850%, 11–15–27		3,000		2,837

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Air Freight & Logistics – 0.1%
FedEx Corp.,
4.050%, 2–15–48	$	3,500	$	3,133
Airlines – 0.5%
Aviation Capital Group LLC,
3.500%, 11–1–27 (B)		8,250		7,527
Southwest Airlines Co.,
2.650%, 11–5–20		5,525		5,446
				12,973
Building Products – 0.1%
Owens Corning,
4.400%, 1–30–48		3,200		2,646
Electrical Components & Equipment – 0.2%
Hubbell, Inc.,
3.500%, 2–15–28		7,000		6,608
Environmental & Facilities Services – 0.2%
Waste Management, Inc. (GTD by Waste Management Holdings, Inc.),
3.150%, 11–15–27		6,000		5,708
Industrial Conglomerates – 0.1%
3M Co.,
2.875%, 10–15–27		3,000		2,836
Railroads – 0.0%
Kansas City Southern de Mexico S.A. de C.V.,
2.350%, 5–15–20		1,649		1,617
Total Industrials – 1.6%				47,276
Information Technology
Internet Software & Services – 0.0%
Tencent Holdings Ltd.,
3.595%, 1–19–28 (B)		550		520
IT Consulting & Other Services – 0.2%
Keysight Technologies, Inc.,
4.600%, 4–6–27		4,500		4,498
Total Information Technology – 0.2%				5,018
Materials
Diversified Metals & Mining – 0.2%
Anglo American Capital plc,
3.625%, 9–11–24 (B)		2,000		1,904
Anglo American plc,
4.125%, 4–15–21 (B)		3,500		3,518
				5,422
Fertilizers & Agricultural Chemicals – 0.2%
Mosaic Co. (The),
4.050%, 11–15–27		6,000		5,802
Paper Packaging – 0.2%
WestRock Co.,
3.000%, 9–15–24 (B)		7,000		6,616

2018 SEMIANNUAL REPORT 17

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Specialty Chemicals – 0.2%
Ecolab, Inc.:
3.250%, 12–1–27	$	3,000	$	2,878
3.950%, 12–1–47		3,000		2,845
				5,723
Total Materials – 0.8%				23,563
Real Estate
Health Care REITs – 0.2%
Senior Housing Properties Trust,
4.750%, 2–15–28		5,500		5,315
Industrial REITs – 0.1%
Air Lease Corp.,
3.250%, 3–1–25		3,500		3,270
Specialized REITs – 1.2%
American Tower Corp.:
2.250%, 1–15–22		10,500		10,021
4.700%, 3–15–22		2,540		2,623
3.375%, 10–15–26		5,080		4,729
3.600%, 1–15–28		4,500		4,202
American Tower Trust I,
3.652%, 3–23–28 (B)		2,000		1,962
Crown Castle International Corp.:
5.250%, 1–15–23		2,217		2,324
3.200%, 9–1–24		1,000		951
3.700%, 6–15–26		4,200		4,012
3.650%, 9–1–27		4,000		3,756
				34,580
Total Real Estate – 1.5%				43,165
Telecommunication Services
Integrated Telecommunication Services – 0.4%
AT&T, Inc.:
4.125%, 2–17–26		2,850		2,815
4.900%, 8–15–37 (B)		500		477
5.150%, 2–15–50 (B)		3,000		2,835
Sprint Spectrum Co. LLC and Sprint Spectrum Co. II LLC,
4.738%, 3–20–25 (B)		1,500		1,499
Verizon Communications, Inc.,
4.500%, 8–10–33		4,000		3,968
				11,594
Total Telecommunication Services – 0.4%				11,594
Utilities
Electric Utilities – 0.5%
Duke Energy Corp.,
3.150%, 8–15–27		2,500		2,324
Edison International,
4.125%, 3–15–28		2,000		1,978
Entergy Texas, Inc.,
2.550%, 6–1–21		3,900		3,797
Exelon Corp.,
2.450%, 4–15–21		4,300		4,179

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Electric Utilities (Continued)
Kansas City Power & Light Co.,
4.200%, 3–15–48	$	1,000	$	957
				13,235
Multi-Utilities – 0.1%
Berkshire Hathaway Energy Co.:
3.250%, 4–15–28		1,000		946
3.800%, 7–15–48		3,000		2,704
				3,650
Total Utilities – 0.6%				16,885
TOTAL CORPORATE DEBT SECURITIES – 20.5%			$	590,866
(Cost: $611,424)
OTHER GOVERNMENT SECURITIES (E)
Mexico – 0.1%
United Mexican States,
3.750%, 1–11–28		2,000		1,905
Spain – 0.1%
Telefonica Emisiones S.A.U.,
4.665%, 3–6–38		1,500		1,407
TOTAL OTHER GOVERNMENT SECURITIES – 0.2%			$	3,312
(Cost: $3,492)
LOANS (D)
Industrials
Industrial Machinery – 0.4%
Dynacast International LLC (ICE LIBOR plus 850 bps),
10.886%, 1–30–23 (F)		10,981		10,816
Total Industrials – 0.4%				10,816
TOTAL LOANS – 0.4%			$	10,816
(Cost: $10,821)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations – 0.0%
National Archives Facility Trust,
8.500%, 9–1–19		406		421
Mortgage-Backed Obligations – 1.4%
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates:
6.500%, 12–1–31		22		24
6.500%, 1–1–32		26		29
4.500%, 6–1–44		7,525		7,798
3.000%, 6–15–45		9,796		9,650

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
4.500%, 9–1–19	$	57	$	57
6.500%, 10–1–28		26		28
6.500%, 2–1–29		4		4
3.500%, 6–25–29		5,944		5,955
7.000%, 11–1–31		35		38
6.500%, 2–1–32		26		29
7.000%, 2–1–32		39		43
7.000%, 3–1–32		17		19
7.000%, 7–1–32		23		26
6.500%, 9–1–32		20		22
5.500%, 5–1–33		17		18
5.500%, 6–1–33		15		16
4.500%, 11–1–43		6,475		6,774
3.000%, 10–25–46		9,708		9,475
Government National Mortgage Association Fixed Rate Pass-Through Certificates,
6.500%, 8–15–28		9		10
				40,015
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 1.4%			$	40,436
(Cost: $42,902)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations – 3.8%
U.S. Treasury Notes:
0.125%, 7–15–26		42,579		40,156
2.125%, 2–15–40		37,776		45,637
1.000%, 2–15–46		25,419		25,083
				110,876
Treasury Obligations – 3.2%
U.S. Treasury Bonds:
2.250%, 11–15–25		12,870		12,234
3.750%, 8–15–41		1,750		1,910
2.750%, 11–15–47		8,000		7,319
U.S. Treasury Notes:
2.625%, 8–31–20 (C)		10,500		10,463
1.875%, 4–30–22		1,800		1,737
2.000%, 7–31–22		8,480		8,198
2.000%, 10–31–22		6,520		6,287
2.125%, 12–31–22		2,000		1,935
2.750%, 11–15–23		1,500		1,486
2.250%, 12–31–24		1,875		1,796
2.875%, 4–30–25		1,500		1,488
2.875%, 5–31–25		8,300		8,233
1.500%, 8–15–26		6,500		5,805
2.250%, 2–15–27		7,250		6,826
2.375%, 5–15–27		2,000		1,899
2.250%, 8–15–27		2,000		1,876
2.750%, 2–15–28		6,250		6,095
2.875%, 5–15–28		5,500		5,418
				91,005
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 7.0%			$	201,881
(Cost: $209,597)

18 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (G) – 1.1%
Commercial Bank PSQC (GTD by Wells Fargo Bank N.A.),
2.130%, 10–29–18	$	7,000	$	6,985
J.M. Smucker Co. (The),
2.400%, 10–1–18		3,116		3,115
McCormick & Co., Inc.,
2.230%, 10–1–18		12,577		12,574
Wisconsin Electric Power Co.,
2.252%, 10–3–18		4,000		3,999
Wisconsin Gas LLC,
2.170%, 10–2–18		5,000		4,999
				31,672

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10–5–18 (H)	$	3,029	$	3,029
Money Market Funds – 0.5%
Dreyfus Institutional Preferred Government Money Market Fund – Institutional Shares,
2.140%, (I)(J)		13,501		13,501

	Value
TOTAL SHORT-TERM SECURITIES – 1.7%	$	48,202
(Cost: $48,209)
TOTAL INVESTMENT SECURITIES – 100.1%	$	2,889,713
(Cost: $2,489,714)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)%		(4,164	)
NET ASSETS – 100.0%	$	2,885,549

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, 2018 the total value of these securities amounted to $115,949 or 4.0% of net assets.

(C) All or a portion of securities with an aggregate value of $13,196 are on loan.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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) Securities whose value was determined using significant unobservable inputs.

(G) Rate shown is the yield to maturity at September 30, 2018.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(I) Investment made with cash collateral received from securities on loan.

(J) Rate shown is the annualized 7-day yield at September 30, 2018.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	1,920,862	$	—	$	—
Preferred Stocks		44,111		17,078		—
Asset-Backed Securities		—		12,149		—
Corporate Debt Securities		—		590,866		—
Other Government Securities		—		3,312		—
Loans		—		—		10,816
United States Government Agency Obligations		—		40,436		—
United States Government Obligations		—		201,881		—
Short-Term Securities		13,501		34,701		—
Total	$	1,978,474	$	900,423	$	10,816

During the period ended September 30, 2018, there were no transfers between any levels.

2018 SEMIANNUAL REPORT 19

SCHEDULE OF INVESTMENTS IVY BALANCED FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

ICE = IntercontinentalExchange

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

20 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY ENERGY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	99.7%
Energy	95.8%
Information Technology	2.6%
Industrials	1.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.3%

Country Weightings

North America	90.9%
United States	88.9%
Other North America	2.0%
Europe	8.8%
United Kingdom	4.0%
Other Europe	4.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.3%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Concho Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Continental Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
EOG Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
WPX Energy, Inc.	United States	Energy	Oil & Gas Exploration & Production
Diamondback Energy, Inc.	United States	Energy	Oil & Gas Exploration & Production
Parsley Energy, Inc., Class A	United States	Energy	Oil & Gas Exploration & Production
Whiting Petroleum Corp.	United States	Energy	Oil & Gas Exploration & Production
Oasis Petroleum LLC	United States	Energy	Oil & Gas Exploration & Production
Pioneer Natural Resources Co.	United States	Energy	Oil & Gas Exploration & Production
Halliburton Co.	United States	Energy	Oil & Gas Equipment & Services

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.

2018 SEMIANNUAL REPORT 21

SCHEDULE OF INVESTMENTS IVY ENERGY FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Energy
Integrated Oil & Gas – 3.4%
Chevron Corp.		64	$	7,869
Suncor Energy, Inc.		297		11,479
				19,348
Oil & Gas Drilling – 7.3%
Ensco plc		1,581		13,344
Patterson-UTI Energy, Inc.		811		13,869
Transocean, Inc. (A)(B)		1,071		14,936
				42,149
Oil & Gas Equipment & Services – 24.6%
C&J Energy Services, Inc. (A)		375		7,793
Cactus, Inc., Class A (A)		329		12,594
Core Laboratories N.V.		107		12,388
Dril-Quip, Inc. (A)		217		11,349
FMC Technologies, Inc.		312		9,739
Forum Energy Technologies, Inc. (A)		920		9,527
FTS International, Inc. (A)		463		5,461
Halliburton Co.		505		20,448
Helix Energy Solutions Group, Inc. (A)		754		7,454
Liberty Oilfield Services, Inc., Class A (B)		199		4,294
National Oilwell Varco, Inc.		60		2,602
ProPetro Holding Corp. (A)		347		5,719
Schlumberger Ltd.		315		19,207
Superior Energy Services, Inc. (A)		1,250		12,171
				140,746
Oil & Gas Exploration & Production – 48.4%
Anadarko Petroleum Corp.		240		16,183
Centennial Resource Development, Inc., Class A (A)		438		9,563

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Exploration & Production (Continued)
Concho Resources, Inc. (A)		241	$	36,875
Continental Resources, Inc. (A)		448		30,559
Devon Energy Corp.		303		12,118
Diamondback Energy, Inc.		160		21,691
EOG Resources, Inc.		187		23,804
Marathon Oil Corp.		809		18,839
Oasis Petroleum LLC (A)		1,454		20,620
Parsley Energy, Inc., Class A (A)		737		21,554
Pioneer Natural Resources Co.		117		20,459
Whiting Petroleum Corp. (A)		401		21,262
WPX Energy, Inc. (A)		1,167		23,482
				277,009
Oil & Gas Refining & Marketing – 8.8%
Marathon Petroleum Corp.		183		14,594
PBF Energy, Inc., Class A		179		8,909
Phillips 66		117		13,148
Valero Energy Corp.		119		13,548
				50,199
Oil & Gas Storage & Transportation – 3.3%
Energy Transfer Partners L.P.		314		6,993
Enterprise Products Partners L.P.		316		9,077
MPLX L.P.		83		2,862
				18,932
Total Energy – 95.8%				548,383
Industrials
Industrial Machinery – 1.3%
Dover Corp. (A)		164		7,157
Total Industrials – 1.3%				7,157

COMMON STOCKS (Continued)	Shares		Value
Information Technology
Data Processing & Outsourced Services – 2.6%
Wright Express Corp. (A)		73	$	14,695
Total Information Technology – 2.6%				14,695
TOTAL COMMON STOCKS – 99.7%			$	570,235
(Cost: $405,274)
SHORT-TERM SECURITIES	Principal
Master Note – 0.4%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10–5–18 (C)	$	2,503		2,503
Money Market Funds – 0.7%
Dreyfus Institutional Preferred Government Money Market Fund – Institutional Shares,
2.140%, (D)(E)		3,910		3,910
TOTAL SHORT-TERM SECURITIES – 1.1%			$	6,413
(Cost: $6,413)
TOTAL INVESTMENT SECURITIES –100.8%			$	576,648
(Cost: $411,687)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.8)%				(4,501	)
NET ASSETS – 100.0%			$	572,147

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 $8,702 are on loan.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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) Investment made with cash collateral received from securities on loan.

(E) Rate shown is the annualized 7-day yield at September 30, 2018.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	570,235	$	—	$	—
Short-Term Securities		3,910		2,503		—
Total	$	574,145	$	2,503	$	—

During the period ended September 30, 2018, there were no transfers between Level 1 and 2.

22 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY ENERGY FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

The following acronym is used throughout this schedule:

LIBOR = London Interbank Offered Rate

Country Diversification
(as a % of net assets)
United States	88.9%
United Kingdom	4.0%
Switzerland	2.6%
Netherlands	2.2%
Canada	2.0%
Other+	0.3%

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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 23

PORTFOLIO HIGHLIGHTS IVY LASALLE GLOBAL REAL ESTATE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	99.1%
Real Estate	98.2%
Telecommunication Services	0.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Country Weightings

North America	55.8%
United States	54.4%
Other North America	1.4%
Pacific Basin	26.8%
Japan	12.6%
Hong Kong	10.1%
Australia	4.0%
Other Pacific Basin	0.1%
Europe	16.5%
United Kingdom	5.5%
Germany	3.4%
Other Europe	7.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Top 10 Equity Holdings

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

24 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Real Estate – 4.0%
Dexus		80	$	609
GPT Group		105		395
Mirvac Group		226		394
Scentre Group		449		1,288
				2,686
Total Australia – 4.0%				2,686
Belgium
Real Estate – 0.2%
Warehouses De Pauw Comm VA		1		139
Total Belgium – 0.2%				139
Canada
Real Estate – 1.4%
Chartwell Retirement Residences		9		104
Choice Properties REIT		21		196
Cominar Real Estate Investment Trust		17		156
First Capital Realty, Inc.		11		164
H&R Real Estate Investment Trust		18		273
Northview Apartment REIT		4		83
				976
Total Canada – 1.4%				976
France
Real Estate – 3.4%
Gecina		3		530
Unibail-Rodamco-Westfield		9		1,720
				2,250
Total France – 3.4%				2,250
Germany
Real Estate – 3.4%
alstria office AG		25		370
LEG Immobilien AG		5		602
Vonovia SE		28		1,368
				2,340
Total Germany – 3.4%				2,340
Hong Kong
Real Estate – 10.1%
Hang Lung Properties Ltd.		460		899
Link (The)		161		1,584
Sun Hung Kai Properties Ltd.		215		3,131
Swire Properties Ltd.		297		1,124
				6,738
Total Hong Kong – 10.1%				6,738
Ireland
Real Estate – 0.8%
Hibernia REIT plc		103		170

COMMON STOCKS (Continued)	Shares			Value
Real Estate (Continued)
Irish Residential Properties REIT plc		208		$	357
					527
Total Ireland – 0.8%					527
Japan
Real Estate – 12.6%
Daiwa Office Investment Corp.		—	*		452
Global One Corp.		—	*		323
Heiwa Real Estate Co. Ltd.		47			835
Ichigo Hotel Investment Corp.		—	*		134
Keihanshin Building Co. Ltd.		55			420
Kenedix Office Investment Corp.		—	*		300
MCUBS MidCity Investment Corp.		—	*		112
Mitsubishi Estate Co. Ltd.		140			2,374
Mitsui Fudosan Co. Ltd.		126			2,472
Nippon Building Fund, Inc.		—	*		578
ORIX JREIT, Inc.		—	*		484
					8,484
Total Japan – 12.6%					8,484
Singapore
Real Estate – 0.1%
Mapletree Commercial Trust		27			32
UOL Group Ltd.		21			103
					135
Total Singapore – 0.1%					135
Spain
Real Estate – 1.5%
Lar Espana Real Estate Socimi S.A.		33			339
Merlin Properties Socimi S.A.		52			704
					1,043
Total Spain – 1.5%					1,043
Sweden
Real Estate – 1.3%
Hufvudstaden AB		20			306
Wihlborgs Fastigheter AB		42			510
					816
Total Sweden – 1.3%					816
Switzerland
Real Estate – 0.4%
PSP Swiss Property Ltd., Registered Shares		3			262
Total Switzerland – 0.4%					262
United Kingdom
Real Estate – 5.5%
Big Yellow Group plc		29			351
Capital & Counties Properties plc		86			297
Derwent London plc		15			573
Great Portland Estates plc		79			693
Land Securities Group plc		110			1,272

COMMON STOCKS (Continued)	Shares		Value
Real Estate (Continued)
SEGRO plc		70	$	564
				3,750
Total United Kingdom – 5.5%				3,750
United States
Real Estate – 53.5%
American Campus Communities, Inc.		27		1,131
American Homes 4 Rent		26		563
AvalonBay Communities, Inc.		25		2,910
Boston Properties, Inc.		13		1,634
Brixmor Property Group, Inc.		43		747
Camden Property Trust		7		690
Crown Castle International Corp.		9		1,008
CubeSmart		44		1,262
Digital Realty Trust, Inc.		7		839
Duke Realty Corp.		28		801
Equinix, Inc.		1		220
Equity Lifestyle Properties, Inc.		6		556
Equity Residential		36		2,378
First Industrial Realty Trust, Inc.		12		375
HCP, Inc.		52		1,378
HRPT Properties Trust (A)		6		194
National Retail Properties, Inc.		16		735
Park Hotels & Resorts, Inc.		34		1,125
ProLogis, Inc.		10		670
Public Storage, Inc.		11		2,276
QTS Realty Trust, Inc., Class A		9		374
Regency Centers Corp.		23		1,503
RLJ Lodging Trust		58		1,285
Simon Property Group, Inc.		21		3,641
SL Green Realty Corp.		10		1,012
Taubman Centers, Inc.		14		866
VEREIT, Inc.		88		638
VICI Properties, Inc.		37		793
Vornado Realty Trust		25		1,828
Welltower, Inc.		38		2,453
				35,885
Telecommunication Services – 0.9%
SBA Communications Corp. (A)		3		554
Total United States – 54.4%				36,439
TOTAL COMMON STOCKS – 99.1%			$	66,585
(Cost: $62,380)
SHORT-TERM SECURITIES	Principal
Master Note – 0.2%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
2.470%, 10–5–18 (B)	$	144		144
TOTAL SHORT-TERM SECURITIES – 0.2%			$	144
(Cost: $144)
TOTAL INVESTMENT SECURITIES – 99.3%			$	66,729
(Cost: $62,524)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7%				502
NET ASSETS – 100.0%			$	67,231

2018 SEMIANNUAL REPORT 25

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

SEPTEMBER 30, 2018 (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, 2018. 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, 2018. 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	$	66,585	$	—	$	—
Short-Term Securities		—		144		—
Total	$	66,585	$	144	$	—

During the period ended September 30, 2018, securities totaling $26,671 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

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	98.2%
Telecommunication Services	0.9%
Other+	0.9%

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

See Accompanying Notes to Financial Statements.

26 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	99.1%
Real Estate	99.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Country Weightings

North America	56.1%
United States	55.0%
Other North America	1.1%
Pacific Basin	25.0%
Hong Kong	10.7%
Japan	9.2%
Australia	4.8%
Other Pacific Basin	0.3%
Europe	18.0%
United Kingdom	6.7%
France	3.8%
Germany	3.5%
Other Europe	4.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Top 10 Equity Holdings

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

2018 SEMIANNUAL REPORT 27

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Real Estate – 4.8%
Dexus		144	$	1,101
GPT Group		229		862
Scentre Group		612		1,757
				3,720
Total Australia – 4.8%				3,720
Belgium
Real Estate – 0.5%
Warehouses De Pauw Comm VA		3		376
Total Belgium – 0.5%				376
Canada
Real Estate – 1.1%
Allied Properties		5		181
Canadian Apartment Properties REIT		7		257
Chartwell Retirement Residences		16		179
SmartREIT		13		312
				929
Total Canada – 1.1%				929
France
Real Estate – 3.8%
Gecina		5		807
Unibail-Rodamco-Westfield		11		2,204
				3,011
Total France – 3.8%				3,011
Germany
Real Estate – 3.5%
alstria office AG		53		793
LEG Immobilien AG		16		1,935
				2,728
Total Germany – 3.5%				2,728
Hong Kong
Real Estate – 10.7%
Hongkong Land Holdings Ltd.		111		735
Hysan Development Co. Ltd.		210		1,061
Link (The)		348		3,425
Swire Properties Ltd.		811		3,070
				8,291
Total Hong Kong – 10.7%				8,291
Ireland
Real Estate – 1.1%
Hibernia REIT plc		144		238

COMMON STOCKS (Continued)	Shares			Value
Real Estate (Continued)
Irish Residential Properties REIT plc		380		$	651
					889
Total Ireland – 1.1%					889
Japan
Real Estate – 9.2%
Daiwa Office Investment Corp.		—	*		1,085
GLP J-REIT		—	*		392
Heiwa Real Estate Co. Ltd.		—	*		105
ITOCHU Advance Logistics Investment Corp.		—	*		86
Japan Excellent, Inc.		—	*		363
Kenedix Office Investment Corp.		—	*		1,244
Kenedix Retail Corp.		—	*		129
Mitsui Fudosan Co. Ltd.		46			487
Nippon Building Fund, Inc.		—	*		1,318
ORIX JREIT, Inc.		1			1,735
Sekisui House REIT, Inc.		—	*		125
					7,069
Total Japan – 9.2%					7,069
Singapore
Real Estate – 0.3%
CapitaCommercial Trust		81			105
CapitaMall Trust		51			82
Mapletree Commercial Trust		66			78
					265
Total Singapore – 0.3%					265
Spain
Real Estate – 0.7%
Lar Espana Real Estate Socimi S.A.		52			533
Total Spain – 0.7%					533
Sweden
Real Estate – 1.2%
Hufvudstaden AB		60			919
Total Sweden – 1.2%					919
Switzerland
Real Estate – 0.5%
PSP Swiss Property Ltd., Registered Shares		4			407
Total Switzerland – 0.5%					407
United Kingdom
Real Estate – 6.7%
Big Yellow Group plc		50			595
Derwent London plc		41			1,527

COMMON STOCKS (Continued)	Shares		Value
Real Estate (Continued)
Land Securities Group plc		185	$	2,130
SEGRO plc		96		799
				5,051
Total United Kingdom – 6.7%				5,051
United States
Real Estate – 55.0%
American Campus Communities, Inc.		34		1,420
AvalonBay Communities, Inc.		32		3,773
Boston Properties, Inc.		21		2,637
Brixmor Property Group, Inc.		67		1,168
Camden Property Trust		15		1,397
Corporate Office Properties Trust		24		715
CubeSmart		63		1,806
Duke Realty Corp.		36		1,026
Equity Residential		56		3,686
Federal Realty Investment Trust		8		1,020
First Industrial Realty Trust, Inc.		15		474
HCP, Inc.		80		2,097
HRPT Properties Trust (A)		7		226
Hudson Pacific Properties, Inc.		20		652
National Retail Properties, Inc.		30		1,360
Paramount Group, Inc.		68		1,031
ProLogis, Inc.		18		1,241
Public Storage, Inc.		15		3,125
Realty Income Corp.		8		453
Regency Centers Corp.		30		1,948
Simon Property Group, Inc.		27		4,750
Taubman Centers, Inc.		22		1,296
Vornado Realty Trust		31		2,247
Welltower, Inc.		49		3,147
				42,695
Total United States – 55.0%				42,695
TOTAL COMMON STOCKS – 99.1%			$	76,883
(Cost: $69,839)
SHORT-TERM SECURITIES	Principal
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
2.470%, 10–5–18 (B)	$	44		44
TOTAL SHORT-TERM SECURITIES – 0.1%			$	44
(Cost: $44)
TOTAL INVESTMENT SECURITIES – 99.2%			$	76,927
(Cost: $69,883)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.8%				624
NET ASSETS – 100.0%			$	77,551

28 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (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, 2018. 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, 2018. 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	$	76,883	$	—	$	—
Short-Term Securities		—		44		—
Total	$	76,883	$	44	$	—

During the period ended September 30, 2018, securities totaling $33,465 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

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	99.1%
Other+	0.9%

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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 29

PORTFOLIO HIGHLIGHTS IVY NATURAL RESOURCES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	98.4%
Energy	65.2%
Materials	26.5%
Industrials	5.7%
Consumer Staples	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.6%

Country Weightings

North America	82.8%
United States	75.2%
Canada	7.6%
Europe	10.3%
United Kingdom	6.6%
Other Europe	3.7%
Pacific Basin	3.3%
Other	2.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.6%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Halliburton Co.	United States	Energy	Oil & Gas Equipment & Services
Concho Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
EOG Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Chevron Corp.	United States	Energy	Integrated Oil & Gas
Phillips 66	United States	Energy	Oil & Gas Refining & Marketing
Marathon Petroleum Corp.	United States	Energy	Oil & Gas Refining & Marketing
Valero Energy Corp.	United States	Energy	Oil & Gas Refining & Marketing
BHP Billiton plc	Australia	Materials	Diversified Metals & Mining
WPX Energy, Inc.	United States	Energy	Oil & Gas Exploration & Production
Canadian Pacific Railway Ltd.	Canada	Industrials	Railroads

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 2018

SCHEDULE OF INVESTMENTS IVY NATURAL RESOURCES FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Materials – 3.3%
BHP Billiton plc		791	$	17,220
Total Australia – 3.3%				17,220
Canada
Industrials – 3.2%
Canadian Pacific Railway Ltd.		77		16,404
Materials – 4.4%
Nutrien Ltd.		269		15,507
West Fraser Timber Co. Ltd.		125		7,091
				22,598
Total Canada – 7.6%				39,002
Hong Kong
Materials – 0.0%
China Metal Recycling (Holdings) Ltd. (A)(B)		30,000		—	*
Total Hong Kong – 0.0%				—	*
Netherlands
Energy – 2.6%
Core Laboratories N.V.		114		13,251
Total Netherlands – 2.6%				13,251
Portugal
Energy – 1.1%
Galp Energia SGPS S.A., Class B		288		5,709
Total Portugal – 1.1%				5,709
South Africa
Materials – 2.0%
Mondi plc		371		10,166
Total South Africa – 2.0%				10,166
United Kingdom
Energy – 0.5%
BP plc		332		2,547

COMMON STOCKS (Continued)	Shares		Value
Materials – 6.1%
Croda International plc		109	$	7,374
Randgold Resources Ltd. ADR		130		9,144
Rio Tinto plc		290		14,669
				31,187
Total United Kingdom – 6.6%			$	33,734
United States
Consumer Staples – 1.0%
Ingredion, Inc.		48		5,054
Energy – 61.0%
Cabot Oil & Gas Corp.		514		11,565
Centennial Resource Development, Inc., Class A (A)		442		9,651
Chevron Corp.		181		22,071
Cimarex Energy Co.		126		11,739
Concho Resources, Inc. (A)		162		24,756
Continental Resources, Inc. (A)		82		5,568
Diamondback Energy, Inc.		117		15,817
Enterprise Products Partners L.P.		336		9,653
EOG Resources, Inc.		182		23,173
EQT Midstream Partners L.P.		44		2,346
Halliburton Co.		730		29,567
Kosmos Energy Ltd. (A)		351		3,280
Magellan Midstream Partners L.P.		178		12,030
Marathon Petroleum Corp.		224		17,929
MPLX L.P.		142		4,909
Noble Energy, Inc.		362		11,299
Parsley Energy, Inc., Class A (A)		533		15,577
Phillips 66		183		20,662
RPC, Inc.		838		12,974
Schlumberger Ltd.		217		13,224
Valero Energy Corp.		155		17,682
WPX Energy, Inc. (A)		818		16,463
				311,935
Industrials – 2.5%
Union Pacific Corp.		79		12,790
Materials – 10.7%
Air Products and Chemicals, Inc.		75		12,487
Dow Chemical Co. (The)		84		5,386
Ecolab, Inc.		55		8,639

COMMON STOCKS (Continued)	Shares		Value
Materials (Continued)
International Flavors & Fragrances, Inc.		35	$	4,889
Martin Marietta Materials, Inc.		23		4,267
Packaging Corp. of America		45		4,947
PPG Industries, Inc.		77		8,397
WestRock Co. (A)		50		5,093
				54,105
Total United States – 75.2%				383,884
TOTAL COMMON STOCKS – 98.4%			$	502,966
(Cost: $447,013)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 0.5%
Kroger Co. (The)
2.350%, 10–1–18	$	2,592		2,592
Master Note – 0.5%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
2.470%, 10–5–18 (D)		2,592		2,592
United States Government Agency Obligations – 0.8%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate)
2.220%, 10–7–18 (D)		4,000		4,000
TOTAL SHORT-TERM SECURITIES – 1.8%			$	9,184
(Cost: $9,184)
TOTAL INVESTMENT SECURITIES – 100.2%			$	512,150
(Cost: $456,197)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)%				(1,127	)
NET ASSETS – 100.0%			$	511,023

Notes to Schedule of Investments

* Not shown due to rounding.

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

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

(C) Rate shown is the yield to maturity at September 30, 2018.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

2018 SEMIANNUAL REPORT 31

SCHEDULE OF INVESTMENTS IVY NATURAL RESOURCES FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

The following forward foreign currency contracts were outstanding at September 30, 2018:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
Euro		4,703	U.S. Dollar		5,384	10–5–18	Morgan Stanley International	$	—	$	77
British Pound		37,024	U.S. Dollar		48,742	10–5–18	UBS AG		477		—
Canadian Dollar		9,657	U.S. Dollar		7,328	10–5–18	UBS AG		—		149
								$	477	$	226

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	502,966	$	—	$	—	*
Short-Term Securities		—		9,184		—
Total	$	502,966	$	9,184	$	—
Forward Foreign Currency Contracts	$	—	$	477	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	226	$	—

During the period ended September 30, 2018, securities totaling $52,244 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. 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

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

TB = Treasury Bill

Market Sector Diversification
(as a % of net assets)
Energy	65.2%
Materials	26.5%
Industrials	5.7%
Consumer Staples	1.0%
Other+	1.6%

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

See Accompanying Notes to Financial Statements.

32 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY SCIENCE AND TECHNOLOGY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	98.4%
Information Technology	74.6%
Health Care	15.9%
Consumer Discretionary	4.0%
Telecommunication Services	1.8%
Real Estate	1.2%
Materials	0.5%
Industrials	0.4%
Utilities	0.0%
Warrants	0.0%
Purchased Options	0.1%
Bonds	0.1%
Corporate Debt Securities	0.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.4%

Country Weightings

North America	86.1%
United States	86.1%
Pacific Basin	8.6%
India	4.4%
China	3.9%
Other Pacific Basin	0.3%
Europe	3.7%
Other	0.1%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options	1.5%

Top 10 Equity Holdings

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

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

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

2018 SEMIANNUAL REPORT 33

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Broadcasting – 0.2%
HUYA, Inc. ADR (A)(B)		666	$	15,704
Internet & Direct Marketing Retail – 3.8%
Amazon.com, Inc. (A)		40		80,521
Netflix, Inc. (A)		618		231,362
				311,883
Total Consumer Discretionary – 4.0%				327,587
Health Care
Biotechnology – 11.6%
BioMarin Pharmaceutical, Inc. (A)		1,071		103,874
CRISPR Therapeutics AG (A)		922		40,896
Evogene Ltd. (A)(C)		2,620		8,096
Gilead Sciences, Inc.		1,026		79,217
Ionis Pharmaceuticals, Inc. (A)		3,534		182,284
Sage Therapeutics, Inc. (A)		219		30,906
Sarepta Therapeutics, Inc. (A)		698		112,750
Vertex Pharmaceuticals, Inc. (A)		2,036		392,457
				950,480
Health Care Equipment – 1.0%
Medtronic plc		868		85,346
Health Care Technology – 3.2%
Cerner Corp. (A)		4,024		259,212
Pharmaceuticals – 0.1%
Elanco Animal Health, Inc. (A)		232		8,094
Total Health Care – 15.9%				1,303,132
Industrials
Air Freight & Logistics – 0.1%
Best, Inc. ADR (A)(B)		1,491		8,826
Heavy Electrical Equipment – 0.3%
Bloom Energy Corp., Class A (A)(B)		692		23,580
Total Industrials – 0.4%				32,406
Information Technology
Application Software – 9.5%
ACI Worldwide, Inc. (A)(C)		11,673		328,470
Aspen Technology, Inc. (A)(C)		3,978		453,167
				781,637
Data Processing & Outsourced Services – 11.2%
Alliance Data Systems Corp.		673		158,893
Euronet Worldwide, Inc. (A)(C)		3,558		356,561
GreenSky, Inc., Class A (A)		2,287		41,163
WNS (Holdings) Ltd. ADR (A)(C)		7,174		364,100
				920,717
Electronic Components – 3.2%
Universal Display Corp. (B)		2,220		261,739

COMMON STOCKS (Continued)	Shares		Value
Internet Software & Services – 13.7%
Alibaba Group Holding Ltd. ADR (A)		1,795	$	295,744
Alphabet, Inc., Class A (A)		179		215,826
Alphabet, Inc., Class C (A)		234		279,464
Endava plc ADR (A)		300		8,682
Facebook, Inc., Class A (A)		1,964		322,940
				1,122,656
IT Consulting & Other Services – 0.6%
Teradata Corp. (A)		1,364		51,445
Semiconductor Equipment – 2.1%
ASML Holding N.V., NY Registry Shares		892		167,658
Semiconductors – 16.5%
Cypress Semiconductor Corp. (C)		18,856		273,222
Marvell Technology Group Ltd.		7,233		139,603
Microchip Technology, Inc. (B)		1,277		100,744
Micron Technology, Inc. (A)		8,013		362,408
QUALCOMM, Inc.		2,764		199,113
Rambus, Inc. (A)(C)		8,332		90,903
Semtech Corp. (A)		3,008		167,230
Taiwan Semiconductor Manufacturing Company Ltd. ADR		469		20,729
				1,353,952
Systems Software – 8.8%
Ceridian HCM Holding, Inc. (A)		581		24,408
Microsoft Corp.		6,053		692,316
				716,724
Technology Hardware, Storage & Peripherals – 9.0%
Apple, Inc.		2,047		462,045
Hewlett-Packard Co.		10,657		274,631
				736,676
Total Information Technology – 74.6%				6,113,204
Materials
Fertilizers & Agricultural Chemicals – 0.5%
Marrone Bio Innovations, Inc. (A)(B)(C)		23,285		42,612
Total Materials – 0.5%				42,612
Real Estate
Specialized REITs – 1.2%
QTS Realty Trust, Inc., Class A		2,285		97,488
Total Real Estate – 1.2%				97,488
Telecommunication Services
Alternative Carriers – 1.8%
Zayo Group Holdings, Inc. (A)		4,311		149,682
Total Telecommunication Services – 1.8%				149,682

COMMON STOCKS (Continued)	Shares		Value
Utilities
Renewable Electricity – 0.0%
Atlantica Yield plc		95	$	1,948
Total Utilities – 0.0%				1,948
TOTAL COMMON STOCKS – 98.4%			$	8,068,059
(Cost: $3,590,721)
WARRANTS
Fertilizers & Agricultural Chemicals – 0.0%
Marrone Bio Innovations, Inc., expires 12–31–20 (C)(D)(E)		3,770		2,187
Marrone Bio Innovations, Inc., expires 8–20–23 (C)(D)(E)		3,770		—	*
				2,187
TOTAL WARRANTS – 0.0%			$	2,187
(Cost: $—)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Notional Amount
QUALCOMM, Inc.,
Call $67.50, Expires 10–19–18, OTC (Ctrpty: UBS AG)		22,608		2,261		11,134
TOTAL PURCHASED OPTIONS – 0.1%					$	11,134
(Cost: $4,002)

CORPORATE DEBT SECURITIES	Principal
Materials
Fertilizers & Agricultural Chemicals – 0.1%
Marrone Bio Innovations, Inc.,
8.000%, 8–20–20 (C)(D)	$	4,713		4,590
Total Materials – 0.1%				4,590
TOTAL CORPORATE DEBT SECURITIES – 0.1%			$	4,590
(Cost: $4,713)
SHORT-TERM SECURITIES
Commercial Paper (F) – 0.9%
Brown-Forman Corp.,
2.124%, 10–9–18		7,500		7,495
International Paper Co.:
2.292%, 10–2–18		5,000		4,998
2.302%, 10–3–18		10,000		9,997
Mondelez International, Inc.,
2.282%, 10–5–18		12,000		11,994
NBCUniversal Enterprise, Inc.,
2.880%, 10–11–18		6,000		5,995
Northern Illinois Gas Co.,
2.401%, 10–3–18		5,000		4,998

34 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (F) (Continued)
Rockwell Automation, Inc.,
2.222%, 10–5–18	$	4,595	$	4,593
Wisconsin Electric Power Co.:
2.252%, 10–3–18		3,750		3,749
2.250%, 10–4–18		10,000		9,996
Wisconsin Gas LLC:
2.212%, 10–3–18		5,000		4,998
2.201%, 10–4–18		5,000		4,998
				73,811
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10–5–18 (G)		5,989		5,989
Money Market Funds – 2.2%
Dreyfus Institutional Preferred Government Money Market Fund – Institutional Shares,
2.140%, (H)(I)		177,249		177,249

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – 0.1%
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),
1.550%, 10–7–18 (G)	$	2,000	$	2,000
Kansas City, MO, Var Rate Dnd Spl Oblig Rfdg Bonds (President Hotel Redev Proj), Ser 2009B (GTD by JPMorgan Chase & Co.) (BVAL plus 22 bps),
2.190%, 10–7–18 (G)		5,000		5,000
				7,000
United States Government Agency Obligations – 0.3%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.170%, 10–7–18 (G)		1,935		1,935
2.190%, 10–7–18 (G)		6,165		6,165

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations (Continued)
2.200%, 10–7–18 (G)	$	4,000	$	4,000
2.220%, 10–7–18 (G)		9,491		9,491
2.240%, 10–7–18 (G)		1,063		1,063
				22,654
TOTAL SHORT-TERM SECURITIES – 3.6%			$	286,703
(Cost: $286,719)
TOTAL INVESTMENT SECURITIES – 102.2%			$	8,372,673
(Cost: $3,886,155)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.2)%				(181,122	)
NET ASSETS – 100.0%			$	8,191,551

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) All or a portion of securities with an aggregate value of $236,969 are on loan.

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

(D) Restricted securities. At September 30, 2018, the Fund owned the following restricted securities:

Security	Acquisition Date(s)		Shares		Cost		Market Value
Marrone Bio Innovations, Inc., expires 12–31–20		2–6–18		3,770	$	—	$	2,187
Marrone Bio Innovations, Inc., expires 8–20–23		8–20–15		3,770		—		—	*
			Principal
Marrone Bio Innovations, Inc., 8.000%, 08–20–20		8–20–15	$	4,713		4,713		4,590
					$	73,047	$	49,389

    The total value of these securities represented 0.1% of net assets at September 30, 2018.

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

(F) Rate shown is the yield to maturity at September 30, 2018.

(G) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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) Investment made with cash collateral received from securities on loan.

(I) Rate shown is the annualized 7-day yield at September 30, 2018.

2018 SEMIANNUAL REPORT 35

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

SEPTEMBER 30, 2018 (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, 2018. 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	$	327,587	$	—	$	—
Health Care		1,303,132		—		—
Industrials		32,406		—		—
Information Technology		6,113,204		—		—
Materials		—		42,612		—
Real Estate		97,488		—		—
Telecommunication Services		149,682		—		—
Utilities		1,948		—		—
Total Common Stocks	$	8,025,447	$	42,612	$	—
Warrants		—		2,187		—
Purchased Options		—		11,134		—
Corporate Debt Securities		—		4,590		—
Short-Term Securities		177,249		109,454		—
Total	$	8,202,696	$	169,977	$	—

During the period ended September 30, 2018, 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

OTC = Over the Counter

TB = Treasury Bill

Country Diversification
(as a % of net assets)
United States	86.1%
India	4.4%
China	3.9%
Netherlands	2.1%
Ireland	1.0%
Other Countries	1.0%
Other+	1.5%

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

See Accompanying Notes to Financial Statements.

36 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY SECURIAN REAL ESTATE SECURITIES FUND^(a)

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

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

Top 10 Equity Holdings

Company	Sector	Industry
ProLogis, Inc.	Real Estate	Industrial REITs
Simon Property Group, Inc.	Real Estate	Retail REITs
Equinix, Inc.	Real Estate	Specialized REITs
AvalonBay Communities, Inc.	Real Estate	Residential REITs
Digital Realty Trust, Inc.	Real Estate	Specialized REITs
Alexandria Real Estate Equities, Inc.	Real Estate	Office REITs
Boston Properties, Inc.	Real Estate	Office REITs
Regency Centers Corp.	Real Estate	Retail REITs
Camden Property Trust	Real Estate	Residential REITs
Duke Realty Corp.	Real Estate	Industrial 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.

(a) Effective April 30, 2018, the name of Ivy Advantus Real Estate Securities Fund was changed to Ivy Securian Real Estate Securities Fund.

2018 SEMIANNUAL REPORT 37

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Real Estate
Diversified REITs – 3.2%
Liberty Property Trust		187	$	7,909
STORE Capital Corp.		243		6,756
				14,665
Health Care REITs – 8.6%
HCP, Inc.		491		12,913
Healthcare Realty Trust, Inc.		47		1,375
Healthcare Trust of America, Inc., Class A		297		7,929
Physicians Realty Trust		189		3,180
Ventas, Inc.		51		2,780
Welltower, Inc.		178		11,462
				39,639
Hotel & Resort REITs – 5.1%
Hilton Worldwide Holdings, Inc.		72		5,840
Host Hotels & Resorts, Inc.		640		13,511
RLJ Lodging Trust		42		919
Sunstone Hotel Investors, Inc.		205		3,359
				23,629
Industrial REITs – 9.4%
Duke Realty Corp.		517		14,664
ProLogis, Inc.		426		28,861
				43,525
Office REITs – 14.4%
Alexandria Real Estate Equities, Inc.		167		21,007
Boston Properties, Inc.		157		19,301

COMMON STOCKS (Continued)	Shares		Value
Office REITs (Continued)
Cousins Properties, Inc.		429	$	3,813
Highwoods Properties, Inc.		66		3,114
Kilroy Realty Corp.		84		6,026
SL Green Realty Corp.		137		13,365
				66,626
Residential REITs – 23.5%
American Homes 4 Rent		280		6,129
AvalonBay Communities, Inc.		125		22,633
Camden Property Trust		163		15,215
Equity Lifestyle Properties, Inc.		40		3,868
Equity Residential		156		10,322
Essex Property Trust, Inc.		44		10,824
Invitation Homes, Inc.		576		13,194
Mid-America Apartment Communities, Inc.		17		1,743
Sun Communities, Inc.		133		13,535
UDR, Inc.		273		11,021
				108,484
Retail REITs – 16.8%
Agree Realty Corp.		153		8,127
Federal Realty Investment Trust		33		4,199
National Retail Properties, Inc.		104		4,648
Realty Income Corp.		124		7,060
Regency Centers Corp.		239		15,443
Retail Opportunity Investments Corp.		177		3,303
Simon Property Group, Inc.		158		27,993
Weingarten Realty Investors		225		6,702
				77,475

COMMON STOCKS (Continued)	Shares		Value
Specialized REITs – 18.0%
CyrusOne, Inc.		206	$	13,060
Digital Realty Trust, Inc.		199		22,338
Equinix, Inc.		58		25,047
Extra Space Storage, Inc.		98		8,465
Four Corners Property Trust, Inc.		188		4,822
Public Storage, Inc.		45		9,174
				82,906
Total Real Estate – 99.0%				456,949
TOTAL COMMON STOCKS – 99.0%			$	456,949
(Cost: $340,340)
SHORT-TERM SECURITIES	Principal
Master Note – 0.9%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10–5–18 (A)	$	3,923		3,923
TOTAL SHORT-TERM SECURITIES – 0.9%			$	3,923
(Cost: $3,923)
TOTAL INVESTMENT SECURITIES – 99.9%			$	460,872
(Cost: $344,263)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1%				614
NET ASSETS – 100.0%			$	461,486

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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, 2018. 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	$	456,949	$	—	$	—
Short-Term Securities		—		3,923		—
Total	$	456,949	$	3,923	$	—

During the period ended September 30, 2018, 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

See Accompanying Notes to Financial Statements.

38 SEMIANNUAL REPORT 2018

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands, except per share amounts)	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			Ivy Science and Technology Fund
ASSETS
Investments in unaffiliated securities at value+^	$	3,076,742		$	2,889,713	$	576,648		$	66,729		$	76,927		$	512,150		$	6,448,765
Investments in affiliated securities at value+		5,741			—		—			—			—			—			1,923,908
Bullion at value+		145,900			—		—			—			—			—			—
Investments at Value		3,228,383			2,889,713		576,648			66,729			76,927			512,150			8,372,673
Cash		764			302		1			1			1			1			5,569
Cash denominated in foreign currencies at value+		276			—		—			38			246			—			—
Investment securities sold receivable		18,722			6,732		—			150			52			2,402			3,324
Dividends and interest receivable		15,560			8,529		182			257			279			525			5,528
Capital shares sold receivable		949			1,781		740			75			195			345			4,305
Receivable from affiliates		54			—		165			128			112			18			44
Unrealized appreciation on forward foreign currency contracts		—			—		—			—			—			477			—
Receivable from securities lending income – net		41			7		8			—			—			2			398
Prepaid and other assets		144			156		74			51			50			70			264
Total Assets		3,264,893			2,907,220		577,818			67,429			77,862			515,990			8,392,105
LIABILITIES
Cash collateral on securities loaned at value		40,379			13,501		3,910			—			—			—			177,249
Investment securities purchased payable		84,768			—		—			77			98			2,645			5,568
Capital shares redeemed payable		6,501			6,951		1,452			83			163			1,201			14,754
Independent Trustees and Chief Compliance Officer fees payable		1,261			393		40			2			3			568			922
Distribution and service fees payable		107			69		10			—	*		1			10			160
Shareholder servicing payable		905			537		182			11			18			242			1,286
Investment management fee payable		167			155		40			5			6			36			528
Accounting services fee payable		23			23		14			4			4			12			23
Unrealized depreciation on forward foreign currency contracts		—			—		—			—			—			226			—
Other liabilities		186			42		23			16			18			27			64
Total Liabilities		134,297			21,671		5,671			198			311			4,967			200,554
Total Net Assets	$	3,130,596		$	2,885,549	$	572,147		$	67,231		$	77,551		$	511,023		$	8,191,551
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	2,964,331		$	2,228,586	$	584,699		$	62,857		$	75,056		$	1,081,154		$	3,093,752
Undistributed (distributions in excess of) net investment income		15,305			5,305		534			164			(204	)		8,024			(37,017	)
Accumulated net realized gain (loss)		292,935			251,659		(178,047	)		5			(4,344	)		(634,353	)		648,298
Net unrealized appreciation (depreciation)		(141,975	)		399,999		164,961			4,205			7,043			56,198			4,486,518
Total Net Assets	$	3,130,596		$	2,885,549	$	572,147		$	67,231		$	77,551		$	511,023		$	8,191,551
CAPITAL SHARES OUTSTANDING:
Class A		53,905			52,118		16,404			738			1,179			17,927			57,523
Class B		2,878			2,022		180			21			52			188			758
Class C		34,668			16,663		3,862			78			316			2,530			9,750
Class E		1,463			8		10			N/A			N/A			298			495
Class I		25,188			37,143		17,847			2,885			4,604			8,783			30,324
Class N		152			388		416			2,426			35			407			1,143
Class R		2,068			521		1,961			48			450			1,274			1,922
Class Y		6,934			1,099		2,755			62			456			1,465			7,288
NET ASSET VALUE PER SHARE:
Class A		$24.94			$26.28		$13.04			$10.70			$10.92			$15.54			$73.66
Class B		$23.43			$26.00		$11.79			$10.64			$10.85			$12.95			$60.71
Class C		$23.60			$26.09		$12.05			$10.62			$10.86			$12.90			$63.13
Class E		$25.02			$26.41		$13.39			N/A			N/A			$16.00			$73.08
Class I		$25.25			$26.27		$13.56			$10.75			$10.95			$16.29			$81.10
Class N		$25.30			$26.32		$13.63			$10.75			$10.96			$16.38			$81.56
Class R		$24.66			$26.23		$12.90			$10.68			$10.89			$15.33			$71.67
Class Y		$25.00			$26.28		$13.23			$10.83			$10.93			$15.96			$77.69
+COST
Investments in unaffiliated securities at cost	$	2,608,765		$	2,489,714	$	411,687		$	62,524		$	69,883		$	456,197		$	3,215,312
Investments in affiliated securities at cost		616,742			—		—			—			—			—			670,843
Bullion at cost		144,464			—		—			—			—			—			—
Cash denominated in foreign currencies at cost		275			—		—			37			246			—			—
^Securities loaned at value		41,007			13,196		8,702			—			—			—			236,969

* Not shown due to rounding.

(1) Consolidated Statement of Assets and Liabilities (See Note 5 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 39

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Securian Real Estate Securities Fund(1)
ASSETS
Investments in unaffiliated securities at value+^	$	460,872
Investments at Value		460,872
Dividends and interest receivable		1,702
Capital shares sold receivable		336
Receivable from affiliates		5
Prepaid and other assets		78
Total Assets		462,993
LIABILITIES
Capital shares redeemed payable		1,219
Independent Trustees and Chief Compliance Officer fees payable		85
Overdraft due to custodian		7
Distribution and service fees payable		7
Shareholder servicing payable		124
Investment management fee payable		30
Accounting services fee payable		12
Other liabilities		23
Total Liabilities		1,507
Total Net Assets	$	461,486
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	328,249
Undistributed net investment income		1,668
Accumulated net realized gain		14,960
Net unrealized appreciation		116,609
Total Net Assets	$	461,486
CAPITAL SHARES OUTSTANDING:
Class A		7,478
Class B		77
Class C		267
Class E		136
Class I		7,052
Class N		26
Class R		33
Class Y		4,028
NET ASSET VALUE PER SHARE:
Class A		$24.11
Class B		$23.16
Class C		$23.56
Class E		$24.11
Class I		$24.28
Class N		$24.31
Class R		$24.08
Class Y		$24.14
+COST
Investments in unaffiliated securities at cost	$	344,263

(1) Effective April 30, 2018, the Fund’s name changed from Ivy Advantus Real Estate Securities Fund to Ivy Securian Real Estate Securities Fund.

See Accompanying Notes to Financial Statements.

40 SEMIANNUAL REPORT 2018

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands)	Ivy Asset Strategy Fund(1)			Ivy Balanced Fund			Ivy Energy Fund			Ivy LaSalle Global Real Estate Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	32,259		$	20,949		$	2,378		$	1,206
Foreign dividend withholding tax		(1,937	)		(110	)		(65	)		(52	)
Interest and amortization from unaffiliated securities		18,799			17,953			38			1
Securities lending income – net		171			22			79			—	*
Total Investment Income		49,292			38,814			2,430			1,155
EXPENSES
Investment management fee		10,382			9,599			2,562			330
Distribution and service fees:
Class A		1,696			1,709			277			10
Class B		380			276			11			1
Class C		4,496			2,292			246			4
Class E		46			—	*		—	*		N/A
Class R		131			34			62			2
Class Y		218			40			56			1
Shareholder servicing:
Class A		1,181			1,022			357			13
Class B		72			46			6			—	*
Class C		337			237			46			1
Class E		62			—	*		—	*		N/A
Class I		527			818			219			30
Class N		—	*		1			—	*		1
Class R		66			17			32			1
Class Y		136			24			37			1
Registration fees		72			70			60			47
Custodian fees		73			14			11			13
Independent Trustees and Chief Compliance Officer fees		88			96			15			1
Accounting services fee		138			138			87			24
Professional fees		975			37			23			22
Other		475			306			37			49
Total Expenses		21,551			16,776			4,144			551
Less:
Expenses in excess of limit		(49	)		(181	)		(165	)		(128	)
Total Net Expenses		21,502			16,595			3,979			423
Net Investment Income (Loss)		27,790			22,219			(1,549	)		732
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		305,674			169,050			19,711			905
Net increase from payments by affiliates (See Note 11 to Financial Statements for further information)		13,805			—			—			—
Foreign currency exchange transactions		(221	)		—			(9	)		(24	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		(201,438	)		5,576			55,189			1,922
Investments in affiliated securities		(938	)		—			—			—
Foreign currency exchange transactions		(431	)		—			—			—	*
Net Realized and Unrealized Gain		116,451			174,626			74,891			2,803
Net Increase in Net Assets Resulting from Operations	$	144,241		$	196,845		$	73,342		$	3,535

* Not shown due to rounding.

(1) Consolidated Statement of Operations (See Note 5 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 41

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands)	Ivy LaSalle Global Risk- Managed Real Estate Fund			Ivy Natural Resources Fund			Ivy Science and Technology Fund			Ivy Securian Real Estate Securities Fund(1)
INVESTMENT INCOME
Dividends from unaffiliated securities	$	1,577		$	5,231		$	25,132		$	6,082
Dividends from affiliated securities		—			—			4,159			—
Foreign dividend withholding tax		(74	)		(120	)		(241	)		—
Interest and amortization from unaffiliated securities		—	*		117			1,264			46
Interest and amortization from affiliated securities		—			—			187			—
Securities lending income – net		—			69			1,309			—
Total Investment Income		1,503			5,297			31,810			6,128
EXPENSES
Investment management fee		392			2,275			31,752			2,144
Distribution and service fees:
Class A		17			361			5,235			235
Class B		3			14			237			10
Class C		19			183			3,105			36
Class E		N/A			6			44			4
Class R		12			51			338			2
Class Y		6			31			713			125
Shareholder servicing:
Class A		22			548			3,075			291
Class B		—	*		14			61			6
Class C		2			11			425			11
Class E		N/A			20			74			9
Class I		50			135			2,195			161
Class N		—	*		—	*		9			—	*
Class R		6			26			181			1
Class Y		4			20			464			75
Registration fees		46			55			98			61
Custodian fees		17			9			61			9
Independent Trustees and Chief Compliance Officer fees		2			20			243			10
Accounting services fee		25			72			138			71
Professional fees		23			33			68			25
Other		53			48			368			34
Total Expenses		699			3,932			48,884			3,320
Less:
Expenses in excess of limit		(112	)		(17	)		(44	)		(243	)
Total Net Expenses		587			3,915			48,840			3,077
Net Investment Income (Loss)		916			1,382			(17,030	)		3,051
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		625			(1,502	)		214,293			18,737
Investments in affiliated securities		—			—			38,469			—
Written options		—			—			2,174			—
Forward foreign currency contracts		—			4,227			—			—
Foreign currency exchange transactions		(42	)		13			—	*		—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		3,133			21,314			513,595			15,868
Investments in affiliated securities		—			—			200,294			—
Written options		—			—			7,917			—
Forward foreign currency contracts		—			140			—			—
Foreign currency exchange transactions		(2	)		(17	)		—			—
Net Realized and Unrealized Gain		3,714			24,175			976,742			34,605
Net Increase in Net Assets Resulting from Operations	$	4,630		$	25,557		$	959,712		$	37,656

* Not shown due to rounding.

(1) Effective April 30, 2018, the Fund’s name changed from Ivy Advantus Real Estate Securities Fund to Ivy Securian Real Estate Securities Fund.

See Accompanying Notes to Financial Statements.

42 SEMIANNUAL REPORT 2018

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Asset Strategy Fund(1)						Ivy Balanced Fund						Ivy Energy Fund
(In thousands)	Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	27,790		$	23,517		$	22,219		$	28,121		$	(1,549	)	$	2,743
Net realized gain (loss) on investments		319,258			205,984			169,050			111,582			19,702			(56,445	)
Net change in unrealized appreciation (depreciation)		(202,807	)		225,205			5,576			(38,682	)		55,189			(12,672	)
Net Increase (Decrease) in Net Assets Resulting from Operations		144,241			454,706			196,845			101,021			73,342			(66,374	)
Distributions to Shareholders From:
Net investment income:
Class A		(11,059	)		(11,648	)		(9,526	)		(12,867	)		—			(702	)
Class B		(239	)		(348	)		(146	)		(829	)		—			—
Class C		(3,249	)		(4,756	)		(1,380	)		(7,726	)		—			—
Class E		(323	)		(437	)		(2	)		(4	)		—			(1	)
Class I		(6,233	)		(8,967	)		(8,066	)		(14,065	)		—			(1,519	)
Class N		(34	)		(34	)		(90	)		(244	)		—			(34	)
Class R		(301	)		(348	)		(72	)		(221	)		—			(36	)
Class Y		(1,429	)		(2,006	)		(216	)		(943	)		—			(177	)
Net realized gains:
Class A		—			(22,116	)		—			(15,452	)		—			—
Class B		—			(2,002	)		—			(1,607	)		—			—
Class C		—			(25,898	)		—			(14,681	)		—			—
Class E		—			(686	)		—			(5	)		—			—
Class I		—			(11,674	)		—			(14,912	)		—			—
Class N		—			(38	)		—			(246	)		—			—
Class R		—			(1,077	)		—			(360	)		—			—
Class Y		—			(3,554	)		—			(1,127	)		—			—
Total Distributions to Shareholders		(22,867	)		(95,589	)		(19,498	)		(85,289	)		—			(2,469	)
Capital Share Transactions		(306,632	)		(1,423,780	)		(302,552	)		756,481			(94,657	)		97,699
Net Increase (Decrease) in Net Assets		(185,258	)		(1,064,663	)		(125,205	)		772,213			(21,315	)		28,856
Net Assets, Beginning of Period		3,315,854			4,380,517			3,010,754			2,238,541			593,462			564,606
Net Assets, End of Period	$	3,130,596		$	3,315,854		$	2,885,549		$	3,010,754		$	572,147		$	593,462
Undistributed net investment income	$	15,305		$	10,603		$	5,305		$	2,584		$	534		$	2,092

(1) Consolidated Statements of Changes in Net Assets (See Note 5 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 43

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy LaSalle Global Real Estate Fund						Ivy LaSalle Global Risk- Managed Real Estate Fund						Ivy Natural Resources Fund
(In thousands)	Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	732		$	1,546		$	916		$	2,323		$	1,382		$	(805	)
Net realized gain (loss) on investments		881			529			583			(617	)		2,738			2,865
Net change in unrealized appreciation (depreciation)		1,922			680			3,131			(1,217	)		21,437			(4,031	)
Net Increase (Decrease) in Net Assets Resulting from Operations		3,535			2,755			4,630			489			25,557			(1,971	)
Distributions to Shareholders From:
Net investment income:
Class A		(143	)		(92	)		(429	)		(91	)		—			—
Class B		(4	)		(1	)		(16	)		—			—			—
Class C		(13	)		(4	)		(106	)		—			—			—
Class E		N/A			N/A			N/A			N/A			—			—
Class I		(566	)		(315	)		(1,663	)		(516	)		—			—
Class N		(563	)		(362	)		(12	)		(2	)		—			—
Class R		(9	)		(4	)		(138	)		(10	)		—			—
Class Y		(12	)		(7	)		(148	)		(26	)		—			—
Net realized gains:
Class A		—			(63	)		—			(19	)		—			—
Class B		—			(2	)		—			(1	)		—			—
Class C		—			(6	)		—			(6	)		—			—
Class E		N/A			N/A			N/A			N/A			—			—
Class I		—			(166	)		—			(67	)		—			—
Class N		—			(207	)		—			—	*		—			—
Class R		—			(4	)		—			(5	)		—			—
Class Y		—			(5	)		—			(5	)		—			—
Total Distributions to Shareholders		(1,310	)		(1,238	)		(2,512	)		(748	)		—			—
Capital Share Transactions		(3,246	)		33,110			(13,282	)		(25,403	)		(57,999	)		(152,044	)
Net Increase (Decrease) in Net Assets		(1,021	)		34,627			(11,164	)		(25,662	)		(32,442	)		(154,015	)
Net Assets, Beginning of Period		68,252			33,625			88,715			114,377			543,465			697,480
Net Assets, End of Period	$	67,231		$	68,252		$	77,551		$	88,715		$	511,023		$	543,465
Undistributed (distributions in excess of) net investment income	$	164		$	766		$	(204	)	$	1,433		$	8,024		$	6,629

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

44 SEMIANNUAL REPORT 2018

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Science and Technology Fund						Ivy Securian Real Estate Securities Fund(1)
(In thousands)	Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	(17,030	)	$	(29,243	)	$	3,051		$	8,699
Net realized gain on investments		254,936			594,043			18,737			35,054
Net change in unrealized appreciation (depreciation)		721,806			196,581			15,868			(52,861	)
Net Increase (Decrease) in Net Assets Resulting from Operations		959,712			761,381			37,656			(9,108	)
Distributions to Shareholders From:
Net investment income:
Class A		—			—			(960	)		(1,533	)
Class B		—			—			(1	)		—
Class C		—			—			(12	)		(11	)
Class E		—			—			(18	)		(25	)
Class I		—			—			(1,214	)		(2,150	)
Class N		—			—			(5	)		(24	)
Class R		—			—			(3	)		(5	)
Class Y		—			—			(599	)		(946	)
Net realized gains:
Class A		—			(70,651	)		—			(24,076	)
Class B		—			(3,167	)		—			(298	)
Class C		—			(48,672	)		—			(1,394	)
Class E		—			(2,002	)		—			(406	)
Class I		—			(91,438	)		—			(20,582	)
Class N		—			(5,915	)		—			(68	)
Class R		—			(8,666	)		—			(110	)
Class Y		—			(36,185	)		—			(11,864	)
Total Distributions to Shareholders		—			(266,696	)		(2,812	)		(63,492	)
Capital Share Transactions		(464,968	)		3,248,500			(48,788	)		(76,477	)
Net Increase (Decrease) in Net Assets		494,744			3,743,185			(13,944	)		(149,077	)
Net Assets, Beginning of Period		7,696,807			3,953,622			475,430			624,507
Net Assets, End of Period	$	8,191,551		$	7,696,807		$	461,486		$	475,430
Undistributed (distributions in excess of) net investment income	$	(37,017	)	$	(19,987	)	$	1,668		$	1,429

(1) Effective April 30, 2018, the Fund’s name changed from Ivy Advantus Real Estate Securities Fund to Ivy Securian Real Estate Securities Fund.

See Accompanying Notes to Financial Statements.

2018 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 9-30-2018 (unaudited)	$	24.02	$	0.23		$	0.89		$	1.12		$	(0.20	)	$	—		$	(0.20	)
Year ended 3-31-2018		21.86		0.21			2.64			2.85			(0.24	)		(0.45	)		(0.69	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		22.55		0.13			0.83			0.96			(0.08	)		—			(0.08	)
Year ended 3-31-2018		20.56		0.02			2.50			2.52			(0.08	)		(0.45	)		(0.53	)
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			—	*		—			—	*
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		22.71		0.14			0.84			0.98			(0.09	)		—			(0.09	)
Year ended 3-31-2018		20.71		0.02			2.51			2.53			(0.08	)		(0.45	)		(0.53	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		24.11		0.24			0.89			1.13			(0.22	)		—			(0.22	)
Year ended 3-31-2018		21.95		0.24			2.66			2.90			(0.29	)		(0.45	)		(0.74	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		24.33		0.26			0.91			1.17			(0.25	)		—			(0.25	)
Year ended 3-31-2018		22.16		0.27			2.70			2.97			(0.35	)		(0.45	)		(0.80	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		24.40		0.28			0.90			1.18			(0.28	)		—			(0.28	)
Year ended 3-31-2018		22.24		0.28			2.73			3.01			(0.40	)		(0.45	)		(0.85	)
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(7)		31.79		0.22			(0.78	)		(0.56	)		(0.17	)		(4.85	)		(5.02	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		23.73		0.19			0.88			1.07			(0.14	)		—			(0.14	)
Year ended 3-31-2018		21.59		0.13			2.61			2.74			(0.15	)		(0.45	)		(0.60	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		24.09		0.23			0.89			1.12			(0.21	)		—			(0.21	)
Year ended 3-31-2018		21.92		0.21			2.67			2.88			(0.26	)		(0.45	)		(0.71	)
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	)

* 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.

(6) Annualized expense ratio based on the period excluding litigation expenses was 1.00%.

(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.

46 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	24.94		4.68	%	$	1,344		1.18	%(4)		1.87	%(4)		—	%		—	%		32	%
Year ended 3-31-2018		24.02		13.11			1,345		1.13			0.90			—			—			34
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		23.43		4.29			67		1.95	(4)		1.12	(4)		—			—			32
Year ended 3-31-2018		22.55		12.26			86		1.91			0.10			—			—			34
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		23.60		4.35			819		1.83	(4)		1.24	(4)		—			—			32
Year ended 3-31-2018		22.71		12.29			995		1.89			0.11			—			—			34
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		25.02		4.69			37		1.08	(4)(6)		1.97	(4)		1.34	(4)		1.71	(4)		32
Year ended 3-31-2018		24.11		13.29			37		1.00			1.03			1.30			0.73			34
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		25.25		4.81			636		0.92	(4)		2.12	(4)		—			—			32
Year ended 3-31-2018		24.33		13.48			622		0.85			1.15			—			—			34
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		25.30		4.85			4		0.77	(4)		2.24	(4)		—			—			32
Year ended 3-31-2018		24.40		13.65			2		0.78			1.19			—			—			34
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(7)		26.21		-1.67			12		0.59	(4)		1.18	(4)		—			—			75	(8)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		24.66		4.53			51		1.51	(4)		1.55	(4)		—			—			32
Year ended 3-31-2018		23.73		12.74			54		1.45			0.57			—			—			34
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		25.00		4.69			173		1.16	(4)		1.88	(4)		—			—			32
Year ended 3-31-2018		24.09		13.15			175		1.10			0.92			—			—			34
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

See Accompanying Notes to Financial Statements.

2018 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 9-30-2018 (unaudited)	$	24.74	$	0.20		$	1.52		$	1.72		$	(0.18	)	$	—		$	(0.18	)
Year ended 3-31-2018		24.33		0.37			1.18			1.55			(0.48	)		(0.66	)		(1.14	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		24.47		0.10			1.50			1.60			(0.07	)		—			(0.07	)
Year ended 3-31-2018		24.09		0.18			1.17			1.35			(0.31	)		(0.66	)		(0.97	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		24.56		0.11			1.50			1.61			(0.08	)		—			(0.08	)
Year ended 3-31-2018		24.17		0.19			1.18			1.37			(0.32	)		(0.66	)		(0.98	)
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	)
Class E Shares(6)
Six-month period ended 9-30-2018 (unaudited)		24.87		0.22			1.52			1.74			(0.20	)		—			(0.20	)
Year ended 3-31-2018		24.45		0.41			1.19			1.60			(0.52	)		(0.66	)		(1.18	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		24.74		0.23			1.51			1.74			(0.21	)		—			(0.21	)
Year ended 3-31-2018		24.33		0.43			1.19			1.62			(0.55	)		(0.66	)		(1.21	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		24.78		0.25			1.52			1.77			(0.23	)		—			(0.23	)
Year ended 3-31-2018		24.37		0.47			1.19			1.66			(0.59	)		(0.66	)		(1.25	)
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(7)		24.66		0.22			1.72			1.94			(0.20	)		(0.74	)		(0.94	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		24.70		0.15			1.52			1.67			(0.14	)		—			(0.14	)
Year ended 3-31-2018		24.30		0.28			1.18			1.46			(0.40	)		(0.66	)		(1.06	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		24.75		0.20			1.51			1.71			(0.18	)		—			(0.18	)
Year ended 3-31-2018		24.34		0.38			1.17			1.55			(0.48	)		(0.66	)		(1.14	)
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	)

* 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.

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

48 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	26.28		6.96	%	$	1,370			1.08	%(4)		1.55	%(4)		1.10	%(4)		1.53	%(4)		21	%
Year ended 3-31-2018		24.74		6.43			1,368			1.12			1.48			—			—			36
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		26.00		6.54			53			1.85	(4)		0.78	(4)		1.86	(4)		0.77	(4)		21
Year ended 3-31-2018		24.47		5.64			58			1.86			0.75			—			—			36
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		26.09		6.56			434			1.79	(4)		0.84	(4)		1.79	(4)		0.84	(4)		21
Year ended 3-31-2018		24.56		5.69			485			1.83			0.78			—			—			36
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
Class E Shares(6)
Six-month period ended 9-30-2018 (unaudited)		26.41		7.00			—	*		0.94	(4)		1.69	(4)		—			—			21
Year ended 3-31-2018		24.87		6.61			—	*		0.97			1.62			—			—			36
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		26.27		7.09			976			0.84	(4)		1.79	(4)		0.85	(4)		1.78	(4)		21
Year ended 3-31-2018		24.74		6.66			1,043			0.88			1.72			—			—			36
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		26.32		7.16			10			0.69	(4)		1.94	(4)		—			—			21
Year ended 3-31-2018		24.78		6.86			10			0.72			1.88			—			—			36
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(7)		25.66		8.01			4			0.70	(4)		1.29	(4)		—			—			33	(8)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		26.23		6.80			14			1.43	(4)		1.20	(4)		—			—			21
Year ended 3-31-2018		24.70		6.04			13			1.46			1.13			—			—			36
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		26.28		6.93			29			1.08	(4)		1.55	(4)		—			—			21
Year ended 3-31-2018		24.75		6.44			34			1.12			1.53			—			—			36
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

See Accompanying Notes to Financial Statements.

2018 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 9-30-2018 (unaudited)	$	11.55	$	(0.04	)	$	1.53		$	1.49		$	—		$	—	$	—
Year ended 3-31-2018		13.30		0.03			(1.74	)		(1.71	)		(0.04	)		—		(0.04	)
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			—			—		—
Class B Shares(6)
Six-month period ended 9-30-2018 (unaudited)		10.48		(0.08	)		1.39			1.31			—			—		—
Year ended 3-31-2018		12.15		(0.03	)		(1.64	)		(1.67	)		—			—		—
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			—			—		—
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		10.71		(0.08	)		1.42			1.34			—			—		—
Year ended 3-31-2018		12.39		0.00	*		(1.68	)		(1.68	)		—			—		—
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			—			—		—
Class E Shares(8)
Six-month period ended 9-30-2018 (unaudited)		11.85		(0.03	)		1.57			1.54			—			—		—
Year ended 3-31-2018		13.63		0.10			(1.82	)		(1.72	)		(0.06	)		—		(0.06	)
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			—			—		—
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		11.99		(0.02	)		1.59			1.57			—			—		—
Year ended 3-31-2018		13.80		0.09			(1.83	)		(1.74	)		(0.07	)		—		(0.07	)
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			—			—		—
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		12.05		(0.01	)		1.59			1.58			—			—		—
Year ended 3-31-2018		13.86		0.17			(1.90	)		(1.73	)		(0.08	)		—		(0.08	)
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(9)		18.03		0.03			(3.60	)		(3.57	)		—			—		—
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		11.45		(0.05	)		1.50			1.45			—			—		—
Year ended 3-31-2018		13.20		0.04			(1.77	)		(1.73	)		(0.02	)		—		(0.02	)
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			—			—		—
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		11.72		(0.03	)		1.54			1.51			—			—		—
Year ended 3-31-2018		13.49		0.08			(1.80	)		(1.72	)		(0.05	)		—		(0.05	)
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			—			—		—

* 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) Expense ratio based on the period excluding reorganization expenses was 1.44%.

(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.

(7) Expense ratio based on the period excluding reorganization expenses was 2.36%.

(8) Class share is closed to investment.

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

(10) Expense ratio based on the period excluding reorganization expenses was 1.09%.

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

50 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	13.04		12.90	%	$	214			1.41	%(4)		-0.60	%(4)		1.50	%(4)		-0.69	%(4)		15	%
Year ended 3-31-2018		11.55		-12.89			211			1.46	(5)		0.26			1.53			0.19			21
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
Class B Shares(6)
Six-month period ended 9-30-2018 (unaudited)		11.79		12.39			2			2.16	(4)		-1.35	(4)		2.38	(4)		-1.57	(4)		15
Year ended 3-31-2018		10.48		-13.66			2			2.38	(7)		-0.25			2.49			-0.36			21
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		12.05		12.51			46			2.11	(4)		-1.30	(4)		—			—			15
Year ended 3-31-2018		10.71		-13.56			48			2.15			-0.01			2.15			-0.01			21
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
Class E Shares(8)
Six-month period ended 9-30-2018 (unaudited)		13.39		13.00			—	*		1.19	(4)		-0.38	(4)		—			—			15
Year ended 3-31-2018		11.85		-12.63			—	*		1.20			0.82			—			—			21
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		13.56		13.09			242			1.05	(4)		-0.25	(4)		1.10	(4)		-0.30	(4)		15
Year ended 3-31-2018		11.99		-12.63			263			1.11	(10)		0.76			1.12			0.75			21
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		13.63		13.11			6			0.94	(4)		-0.13	(4)		—			—			15
Year ended 3-31-2018		12.05		-12.48			5			0.95			1.45			—			—			21
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(9)		14.46		-19.80			2			0.93	(4)		0.34	(4)		—			—			22	(11)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		12.90		12.75			25			1.68	(4)		-0.87	(4)		—			—			15
Year ended 3-31-2018		11.45		-13.11			22			1.70			0.37			—			—			21
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		13.23		12.88			37			1.34	(4)		-0.54	(4)		—			—			15
Year ended 3-31-2018		11.72		-12.78			42			1.35			0.71			—			—			21
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

See Accompanying Notes to Financial Statements.

2018 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 9-30-2018 (unaudited)	$	10.38	$	0.09		$	0.42		$	0.51		$	(0.19	)	$	—		$	(0.19	)
Year ended 3-31-2018		10.28		0.24			0.04			0.28			(0.11	)		(0.07	)		(0.18	)
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(6)
Six-month period ended 9-30-2018 (unaudited)		10.33		0.06			0.42			0.48			(0.17	)		—			(0.17	)
Year ended 3-31-2018		10.24		0.15			0.07			0.22			(0.06	)		(0.07	)		(0.13	)
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 9-30-2018 (unaudited)		10.32		0.05			0.41			0.46			(0.16	)		—			(0.16	)
Year ended 3-31-2018		10.24		0.14			0.06			0.20			(0.05	)		(0.07	)		(0.12	)
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 9-30-2018 (unaudited)		10.41		0.12			0.42			0.54			(0.20	)		—			(0.20	)
Year ended 3-31-2018		10.29		0.26			0.07			0.33			(0.14	)		(0.07	)		(0.21	)
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 9-30-2018 (unaudited)		10.42		0.11			0.42			0.53			(0.20	)		—			(0.20	)
Year ended 3-31-2018(8)		10.42		0.15			0.05			0.20			(0.13	)		(0.07	)		(0.20	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		10.36		0.08			0.42			0.50			(0.18	)		—			(0.18	)
Year ended 3-31-2018		10.27		0.18			0.07			0.25			(0.09	)		(0.07	)		(0.16	)
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 9-30-2018 (unaudited)		10.50		0.10			0.42			0.52			(0.19	)		—			(0.19	)
Year ended 3-31-2018		10.39		0.22			0.07			0.29			(0.11	)		(0.07	)		(0.18	)
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) Annualized expense ratio based on the period excluding reorganization expenses was 1.51%.

(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.

(7) Annualized expense ratio based on the period excluding reorganization expenses was 1.05%.

(8) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

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

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

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

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

52 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	10.70		5.02	%	$	8			1.60	%(4)(5)		1.73	%(4)		1.97	%(4)		1.36	%(4)		23	%
Year ended 3-31-2018		10.38		2.69			8			1.51			2.29			1.79			2.01			77
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 9-30-2018 (unaudited)		10.64		4.66			—	*		2.21	(4)		1.12	(4)		2.46	(4)		0.87	(4)		23
Year ended 3-31-2018		10.33		2.13			—	*		2.18			1.42			2.34			1.26			77
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	(10)		-0.02			3.14			-0.48			36
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		10.62		4.61			1			2.34	(4)		0.98	(4)		2.59	(4)		0.73	(4)		23
Year ended 3-31-2018		10.32		1.96			1			2.30			1.30			2.47			1.13			77
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	(11)		—			3.12			-0.45			36
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		10.75		5.25			31			1.13	(4)(7)		2.22	(4)		1.61	(4)		1.74	(4)		23
Year ended 3-31-2018		10.41		3.20			28			1.05			2.48			1.41			2.12			77
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	(12)		0.94			2.16			0.49			36
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		10.75		5.25			26			1.14	(4)(7)		2.17	(4)		1.40	(4)		1.91	(4)		23
Year ended 3-31-2018(8)		10.42		1.89			30			1.05	(4)		1.96	(4)		1.27	(4)		1.74	(4)		77	(9)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		10.68		4.84			—	*		1.89	(4)		1.45	(4)		2.14	(4)		1.20	(4)		23
Year ended 3-31-2018		10.36		2.39			—	*		1.81			1.74			1.97			1.58			77
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	(13)		0.38			2.73			-0.08			36
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		10.83		5.01			1			1.53	(4)		1.81	(4)		1.78	(4)		1.56	(4)		23
Year ended 3-31-2018		10.50		2.76			1			1.46			2.11			1.62			1.95			77
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.

2018 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 9-30-2018 (unaudited)	$	10.65	$	0.11		$	0.50		$	0.61		$	(0.34	)	$	—		$	(0.34	)
Year ended 3-31-2018		10.70		0.28			(0.26	)		0.02			(0.06	)		(0.01	)		(0.07	)
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(6)
Six-month period ended 9-30-2018 (unaudited)		10.60		0.07			0.49			0.56			(0.31	)		—			(0.31	)
Year ended 3-31-2018		10.68		0.15			(0.22	)		(0.07	)		—			(0.01	)		(0.01	)
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 9-30-2018 (unaudited)		10.60		0.07			0.50			0.57			(0.31	)		—			(0.31	)
Year ended 3-31-2018		10.68		0.15			(0.22	)		(0.07	)		—			(0.01	)		(0.01	)
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 9-30-2018 (unaudited)		10.67		0.13			0.50			0.63			(0.35	)		—			(0.35	)
Year ended 3-31-2018		10.72		0.25			(0.20	)		0.05			(0.09	)		(0.01	)		(0.10	)
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 9-30-2018 (unaudited)		10.68		0.13			0.50			0.63			(0.35	)		—			(0.35	)
Year ended 3-31-2018(8)		10.67		0.13			(0.03	)		0.10			(0.08	)		(0.01	)		(0.09	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		10.63		0.09			0.49			0.58			(0.32	)		—			(0.32	)
Year ended 3-31-2018		10.70		0.16			(0.19	)		(0.03	)		(0.03	)		(0.01	)		(0.04	)
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 9-30-2018 (unaudited)		10.66		0.11			0.50			0.61			(0.34	)		—			(0.34	)
Year ended 3-31-2018		10.71		0.22			(0.20	)		0.02			(0.06	)		(0.01	)		(0.07	)
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) Annualized expense ratio based on the period excluding reorganization expenses was 1.51%.

(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.

(7) Annualized expense ratio based on the period excluding reorganization expenses was 1.16%.

(8) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

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

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

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

54 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	10.92		5.75	%	$	13			1.59	%(4)(5)		2.04	%(4)		1.91	%(4)		1.72	%(4)		19	%
Year ended 3-31-2018		10.65		0.14			15			1.51			2.59			1.77			2.33			35
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(6)
Six-month period ended 9-30-2018 (unaudited)		10.85		5.31			1			2.31	(4)		1.32	(4)		2.41	(4)		1.22	(4)		19
Year ended 3-31-2018		10.60		-0.65			1			2.30			1.40			2.35			1.35			35
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	(10)		0.32			2.58			0.27			38
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		10.86		5.38			3			2.33	(4)		1.31	(4)		2.43	(4)		1.21	(4)		19
Year ended 3-31-2018		10.60		-0.65			4			2.32			1.39			2.37			1.34			35
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	(10)		0.33			2.58			0.28			38
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		10.95		5.95			51			1.24	(4)(7)		2.40	(4)		1.54	(4)		2.10	(4)		19
Year ended 3-31-2018		10.67		0.43			60			1.16			2.31			1.39			2.08			35
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	(11)		1.20			1.70			1.15			38
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		10.96		5.95			—	*		1.24	(4)(7)		2.37	(4)		1.36	(4)		2.25	(4)		19
Year ended 3-31-2018(8)		10.68		0.91			—	*		1.16	(4)		1.69	(4)		1.25	(4)		1.60	(4)		35	(9)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		10.89		5.54			5			1.98	(4)		1.64	(4)		2.08	(4)		1.54	(4)		19
Year ended 3-31-2018		10.63		-0.31			4			1.91			1.47			1.96			1.42			35
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	(12)		0.60			2.31			0.55			38
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		10.93		5.74			5			1.58	(4)(5)		2.04	(4)		1.74	(4)		1.88	(4)		19
Year ended 3-31-2018		10.66		0.14			5			1.51			2.03			1.61			1.93			35
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.

2018 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 9-30-2018 (unaudited)	$	14.82	$	0.03		$	0.69		$	0.72		$	—		$	—	$	—
Year ended 3-31-2018		14.80		(0.03	)		0.05			0.02			—			—		—
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			—			—		—
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		12.44		(0.06	)		0.57			0.51			—			—		—
Year ended 3-31-2018		12.57		(0.18	)		0.05			(0.13	)		—			—		—
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			—			—		—
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		12.33		0.00	*		0.57			0.57			—			—		—
Year ended 3-31-2018		12.39		(0.12	)		0.06			(0.06	)		—			—		—
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			—			—		—
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		15.25		0.06			0.69			0.75			—			—		—
Year ended 3-31-2018		15.15		0.04			0.06			0.10			—			—		—
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			—			—		—
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		15.50		0.07			0.72			0.79			—			—		—
Year ended 3-31-2018		15.40		0.05			0.05			0.10			—			—		—
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			—			—		—
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		15.58		0.09			0.71			0.80			—			—		—
Year ended 3-31-2018		15.44		0.07			0.07			0.14			—			—		—
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 9-30-2018 (unaudited)		14.63		0.02			0.68			0.70			—			—		—
Year ended 3-31-2018		14.61		(0.04	)		0.06			0.02			—			—		—
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			—			—		—
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		15.21		0.05			0.70			0.75			—			—		—
Year ended 3-31-2018		15.14		0.01			0.06			0.07			—			—		—
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			—			—		—

* 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.

(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 2018

	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 9-30-2018 (unaudited)	$	15.54		4.79	%	$	279		1.57	%(4)		0.41	%(4)		—	%		—	%		15	%
Year ended 3-31-2018		14.82		0.20			288		1.73			-0.19			—			—			33
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		12.95		4.10			2		2.96	(4)		-0.99	(4)		—			—			15
Year ended 3-31-2018		12.44		-1.03			3		2.98			-1.50			—			—			33
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		12.90		4.62			32		2.01	(4)		-0.03	(4)		—			—			15
Year ended 3-31-2018		12.33		-0.48			40		2.40			-0.98			—			—			33
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		16.00		4.92			5		1.27	(4)		0.71	(4)		2.00	(4)		-0.02	(4)		15
Year ended 3-31-2018		15.25		0.66			5		1.27			0.27			2.15			-0.61			33
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		16.29		5.03			143		1.12	(4)		0.86	(4)		—			—			15
Year ended 3-31-2018		15.50		0.71			154		1.20			0.32			—			—			33
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		16.38		5.14			7		0.94	(4)		1.05	(4)		—			—			15
Year ended 3-31-2018		15.58		0.91			6		1.04			0.46			—			—			33
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 9-30-2018 (unaudited)		15.33		4.79			19		1.69	(4)		0.29	(4)		—			—			15
Year ended 3-31-2018		14.63		0.14			21		1.78			-0.26			—			—			33
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		15.96		4.93			24		1.34	(4)		0.63	(4)		—			—			15
Year ended 3-31-2018		15.21		0.46			26		1.43			0.09			—			—			33
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

See Accompanying Notes to Financial Statements.

2018 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 9-30-2018 (unaudited)	$	65.33	$	(0.15	)	$	8.48		$	8.33		$	—	$	—		$	—
Year ended 3-31-2018		56.65		(0.36	)		13.46			13.10			—		(4.42	)		(4.42	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		54.08		(0.38	)		7.01			6.63			—		—			—
Year ended 3-31-2018		47.68		(0.76	)		11.33			10.57			—		(4.17	)		(4.17	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		56.20		(0.35	)		7.28			6.93			—		—			—
Year ended 3-31-2018		49.39		(0.76	)		11.74			10.98			—		(4.17	)		(4.17	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		64.88		(0.21	)		8.41			8.20			—		—			—
Year ended 3-31-2018		56.28		(0.44	)		13.43			12.99			—		(4.39	)		(4.39	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		71.85		(0.08	)		9.33			9.25			—		—			—
Year ended 3-31-2018		61.88		(0.26	)		14.77			14.51			—		(4.54	)		(4.54	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		72.20		(0.01	)		9.37			9.36			—		—			—
Year ended 3-31-2018		62.13		(0.17	)		14.85			14.68			—		(4.61	)		(4.61	)
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(8)		57.21		(0.12	)		4.78			4.66			—		(1.17	)		(1.17	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		63.68		(0.27	)		8.26			7.99			—		—			—
Year ended 3-31-2018		55.38		(0.61	)		13.18			12.57			—		(4.27	)		(4.27	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		68.90		(0.16	)		8.95			8.79			—		—			—
Year ended 3-31-2018		59.54		(0.43	)		14.21			13.78			—		(4.42	)		(4.42	)
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	)

(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.

(6) Annualized expense ratio based on the period excluding reorganization expenses was 2.03%.

(7) Annualized expense ratio based on the period excluding reorganization expenses was 1.30%.

(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) Expense ratio based on the period excluding reorganization expenses was 1.22%.

58 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	73.66		12.75	%	$	4,237		1.20	%(4)		-0.42	%(4)		—	%		—	%		6	%
Year ended 3-31-2018		65.33		23.34			4,018		1.22			-0.56			—			—			22
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		60.71		12.28			46		2.07	(4)(6)		-1.29	(4)		—			—			6
Year ended 3-31-2018		54.08		22.36			48		2.03			-1.42			—			—			22
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		63.13		12.33			616		1.95	(4)		-1.16	(4)		—			—			6
Year ended 3-31-2018		56.20		22.44			608		1.98			-1.38			—			—			22
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		73.08		12.64			36		1.40	(4)(7)		-0.61	(4)		1.49	(4)		-0.70	(4)		6
Year ended 3-31-2018		64.88		23.28			32		1.30			-0.69			1.46			-0.85			22
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		81.10		12.87			2,460		0.99	(4)		-0.21	(4)		—			—			6
Year ended 3-31-2018		71.85		23.63			2,235		1.00			-0.37			—			—			22
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		81.56		12.97			93		0.83	(4)		-0.04	(4)		—			—			6
Year ended 3-31-2018		72.20		23.82			73		0.85			-0.24			—			—			22
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(8)		60.70		8.25			12		0.82	(4)		-0.32	(4)		—			—			32	(9)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		71.67		12.54			138		1.57	(4)		-0.79	(4)		—			—			6
Year ended 3-31-2018		63.68		22.91			129		1.58			-0.98			—			—			22
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		77.69		12.76			566		1.20	(4)		-0.42	(4)		1.22	(4)		-0.44	(4)		6
Year ended 3-31-2018		68.90		23.33			554		1.24	(10)		-0.64			—			—			22
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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 59

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SECURIAN 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 9-30-2018 (unaudited)	$	22.41	$	0.13		$	1.69		$	1.82		$	(0.12	)	$	—		$	(0.12	)
Year ended 3-31-2018		25.94		0.39			(0.82	)		(0.43	)		(0.18	)		(2.92	)		(3.10	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		21.54		0.01			1.62			1.63			(0.01	)		—			(0.01	)
Year ended 3-31-2018		25.11		0.14			(0.79	)		(0.65	)		—			(2.92	)		(2.92	)
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			—			—			—
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		21.90		0.04			1.66			1.70			(0.04	)		—			(0.04	)
Year ended 3-31-2018		25.45		0.23			(0.84	)		(0.61	)		(0.02	)		(2.92	)		(2.94	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		22.41		0.14			1.69			1.83			(0.13	)		—			(0.13	)
Year ended 3-31-2018		25.94		0.34			(0.77	)		(0.43	)		(0.18	)		(2.92	)		(3.10	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		22.57		0.18			1.70			1.88			(0.17	)		—			(0.17	)
Year ended 3-31-2018		26.11		0.41			(0.74	)		(0.33	)		(0.29	)		(2.92	)		(3.21	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		22.59		0.20			1.71			1.91			(0.19	)		—			(0.19	)
Year ended 3-31-2018		26.15		0.63			(0.92	)		(0.29	)		(0.35	)		(2.92	)		(3.27	)
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 9-30-2018 (unaudited)		22.39		0.11			1.68			1.79			(0.10	)		—			(0.10	)
Year ended 3-31-2018		25.92		0.36			(0.85	)		(0.49	)		(0.12	)		(2.92	)		(3.04	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		22.44		0.15			1.69			1.84			(0.14	)		—			(0.14	)
Year ended 3-31-2018		25.97		0.40			(0.79	)		(0.39	)		(0.22	)		(2.92	)		(3.14	)
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	)

* 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.

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

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

60 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	24.11		8.14	%	$	180		1.45	%(4)		1.12	%(4)		1.55	%(4)		1.02	%(4)		33	%
Year ended 3-31-2018		22.41		-2.58			189		1.42			1.51			1.52			1.41			68
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		23.16		7.54			2		2.46	(4)		0.06	(4)		2.56	(4)		-0.04	(4)		33
Year ended 3-31-2018		21.54		-3.48			2		2.39			0.57			2.49			0.47			68
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		23.56		7.70			6		2.19	(4)		0.32	(4)		2.29	(4)		0.22	(4)		33
Year ended 3-31-2018		21.90		-3.26			8		2.19			0.93			2.29			0.83			68
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		24.11		8.11			3		1.42	(4)		1.16	(4)		1.80	(4)		0.78	(4)		33
Year ended 3-31-2018		22.41		-2.54			3		1.43			1.34			1.79			0.98			68
Year ended 3-31-2017		25.94		—			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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		24.28		8.33			171		1.07	(4)		1.50	(4)		1.17	(4)		1.40	(4)		33
Year ended 3-31-2018		22.57		-2.17			173		1.06			1.60			1.16			1.50			68
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		24.31		8.44			1		0.91	(4)		1.66	(4)		1.01	(4)		1.56	(4)		33
Year ended 3-31-2018		22.59		-2.04			1		0.89			2.38			0.99			2.28			68
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 9-30-2018 (unaudited)		24.08		8.04			1		1.66	(4)		0.94	(4)		1.76	(4)		0.84	(4)		33
Year ended 3-31-2018		22.39		-2.79			1		1.66			1.40			1.76			1.30			68
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		24.14		8.22			97		1.28	(4)		1.30	(4)		1.38	(4)		1.20	(4)		33
Year ended 3-31-2018		22.44		-2.42			98		1.27			1.57			1.37			1.47			68
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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 61

NOTES TO FINANCIAL STATEMENTS IVY FUNDS

SEPTEMBER 30, 2018 (UNAUDITED)

1. ORGANIZATION

Ivy Funds, a Delaware statutory trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Ivy Asset Strategy Fund, Ivy Balanced Fund, Ivy Energy Fund, Ivy LaSalle Global Real Estate Fund, Ivy LaSalle Global Risk-Managed Real Estate Fund, Ivy Natural Resources Fund, Ivy Science and Technology Fund and Ivy Securian Real Estate Securities Fund (formerly known as Ivy Advantus Real Estate Securities 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. With certain exceptions described in the Prospectus, Class B shares will automatically convert to Class A shares 96 months after the date of purchase. With certain exceptions described in the Prospectus, Class C shares will automatically convert to Class A shares 120 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

62 SEMIANNUAL REPORT 2018

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 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.

2018 SEMIANNUAL REPORT 63

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 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

64 SEMIANNUAL REPORT 2018

appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity.

New Rule Issuance. In March 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Management is currently evaluating the implication of this amendment and its impact to the Funds’ financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-13 which changes the fair value measurement disclosure requirements of ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the implication of this amendment and its impact to the Funds’ financial statements and related disclosures.

In October 2018, the Securities Exchange Commission (“Commission”) adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other Commission disclosure requirements, U.S. GAAP, or changes in the information environment. We are also referring certain Commission disclosure requirements that overlap with, but require information incremental to, U.S. GAAP to the FASB for potential incorporation into U.S. GAAP. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The amendments are effective November 2018. Management is currently evaluating the implication of these amendments and their impact to the Funds’ financial statements and related disclosures.

Subsequent Events. The Board approved a Reorganization Plan, in which the Ivy Global Income Allocation Fund and Ivy LaSalle Global Risk-Managed Real Estate Fund (the “Target Funds”) were reorganized into Ivy Asset Strategy Fund and Ivy LaSalle Global Real Estate Fund (the “Acquiring Funds”), respectively. This means that the Acquiring Funds received all of the assets and liabilities of the corresponding Target Fund in exchange for shares of the Acquiring Fund. Each Target Fund, in turn, distributed those Acquiring Fund shares to its shareholders in liquidation and shareholders of a Target Fund became shareholders of the corresponding Acquiring Fund. The reorganization was effective November 5, 2018.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Each Fund’s investments are reported at fair value. Fair value is defined as the price that each Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Each Fund calculates the NAV of its shares as of the close of the NYSE, normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

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

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

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

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

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

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

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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 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.

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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, which 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. Exchange-traded futures contracts 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 for a comparable listed option provided by an independent pricing service unless such a price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer.

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.

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

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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, 2018, 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.

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 are 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. 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 the underlying 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.

Option contracts can be traded on a regulated exchange or traded OTC. Unlike the trades on a regulated exchange where the clearinghouse guarantees the performances of both the buyer and the seller, 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 Science and Technology Fund purchases and writes call and put options to increase or decrease hedging exposure to underlying instruments (which include credit risk, equity risk, foreign currency exchange rate risk, event risk and/or interest rate risk), increase exposure to various equity markets or certain sectors, gain exposure to or facilitate trading in certain securities and/or, in the case of options written, to generate returns from options premiums.

Collateral and rights of offset. A Fund mitigates 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 all OTC derivative transactions between the Fund and each of its counterparties. Although it is not possible to eliminate credit risk entirely, the CSA allows the Fund and its counterparty to reduce their exposure to the risk of payment default by the other party by holding an amount in collateral equivalent to the realized and unrealized amount of exposure to the counterparty, which is generally held by the Fund’s custodian. An amount of collateral is moved to/from applicable counterparties only if the amount of collateral required to be posted surpasses both the threshold and the minimum transfer amount pre-agreed in the CSA between the Fund and the counterparty. 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, 2018:

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 Natural Resources Fund
Unrealized appreciation on forward foreign currency contracts(1)	$	600	$	—	$	600	$	(195	)	$	(300	)	$	—	$	105
Ivy Science and Technology Fund
Investments in unaffiliated securities at value*	$	11,134	$	—	$	11,134	$	—		$	(10,590	)	$	—	$	544

* 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 Natural Resources Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	285	$	—	$	285	$	(195	)	$	—	$	—	$	90

(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.

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Additional Disclosure Related to Derivative Instruments

Fair values of derivative instruments as of September 30, 2018:

		Assets			Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value		Statement of Assets & Liabilities Location	Value
Ivy Natural Resources Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts	$	477	Unrealized depreciation on forward foreign currency contracts	$	226
Ivy Science and Technology Fund	Equity	Investments in unaffiliated securities at value*		11,134			—

* 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, 2018:

		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 Natural Resources Fund	Foreign currency	$	—		$	—	$	—	$	—	$	4,227	$	4,227
Ivy Science and Technology Fund	Equity		(3,158	)		—		—		2,174		—		(984	)

* 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, 2018:

		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 Natural Resources Fund	Foreign currency	$	—	$	—	$	—	$	—	$	140	$	140
Ivy Science and Technology Fund	Equity		11,997		—		—		7,917		—		19,914

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

During the period ended September 30, 2018, 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 Natural Resources Fund	$	1,238	$	—	$	—	$	—	$	—	$	—
Ivy Science and Technology Fund		—		—		—		—		5,448		4,999

(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. 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

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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, 2018 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	$	3,130,596	$	145,922		4.66	%
Ivy ASF III (SBP), LLC		4-9-13		4-23-13		3,130,596		5,747		0.18	%

6. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS ($ amounts in thousands unless indicated otherwise)

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

Fund (M - Millions)	$0 to $500M			$500 to $1,000M			$1,000 to $2,000M			$2,000 to $3,000M			$3,000 to $5,000M			$5,000 to $8,000M			$8,000 to $10,000M			$10,000 to $13,000M			$13,000 to $28,000M			$28,000 to $53,000M			Over $53,000M
Ivy Asset Strategy Fund		0.700	%		0.700	%		0.650	%		0.600	%		0.550	%		0.550	%		0.550	%		0.550	%		0.550	%		0.545	%		0.540	%
Ivy Balanced Fund		0.700			0.700			0.650			0.600			0.550			0.540			0.540			0.530			0.530			0.530			0.530
Ivy Energy Fund		0.850			0.850			0.830			0.800			0.760			0.750			0.750			0.740			0.740			0.740			0.740
Ivy 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		0.850			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
Ivy Securian 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

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, 2018.

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

Under an agreement between IICO and Securian Asset Management, Inc. (“Securian AM”), Securian AM serves as subadviser to Ivy Securian 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.

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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 that fee if the number of total shareholder accounts within the Complex (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.

72 SEMIANNUAL REPORT 2018

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, 2018, 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 Asset Strategy Fund	$	165	$	—	*	$	26		$	9		$	—	$	156
Ivy Balanced Fund		457		1			15			9			—		412
Ivy Energy Fund		103		—	*		—	*		1			—		85
Ivy LaSalle Global Real Estate Fund		4		—	*		—	*		—	*		N/A		4
Ivy LaSalle Global Risk-Managed Real Estate Fund		4		—			—			—	*		N/A		4
Ivy Natural Resources Fund		75		—	*		1			—	*		—		60
Ivy Science and Technology Fund		1,258		1			16			9			—		1,143
Ivy Securian Real Estate Securities Fund		50		—	*		1			—	*		—		41

* 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 Funds’ investment manager, IDI, the Funds’ distributor, and/or Waddell & Reed Services Company, doing business as WISC, the Funds’ 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, 2018 were as follows:

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Asset Strategy Fund	Class E	Contractual	8-1-2008	7-31-2019	1.00%		$	49		12b-1 Fees and/or Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy Balanced Fund	Class N	Contractual	7-5-2017	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A
Ivy Energy Fund	Class A	Contractual	10-16-2017	7-31-2020	1.41%		$	99		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	10-16-2017	7-31-2020	2.29%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	10-16-2017	7-31-2020	2.11%		$	—		N/A
	Class I	Contractual	10-16-2017	7-31-2020	0.99%(1)		$	61		Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A
Ivy LaSalle Global Real Estate Fund	All Classes	Contractual	1-12-2017	7-31-2019	N/A		$	89	(2)	Investment Management Fee
	Class A	Contractual	4-1-2013	7-31-2019	1.51%		$	5		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	1-12-2017	7-31-2019	1.05%		$	33		Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2019	1.05%		$	1		Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	4-1-2013	7-31-2019	Not to exceed Class A		$	—		N/A

2018 SEMIANNUAL REPORT 73

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy LaSalle Global Risk-Managed Real Estate Fund	All Classes	Contractual	1-12-2017	7-31-2019	N/A		$	42	(2)	Investment Management Fee
	Class A	Contractual	4-1-2013	7-31-2019	1.51%		$	15		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	8-1-2016	7-31-2019	1.16%		$	54		Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2020	Not to exceed Class I		$	—	*	Shareholder Servicing
	Class Y	Contractual	4-1-2013	7-31-2019	Not to exceed Class A		$	1		12b-1 Fees and/or Shareholder Servicing
Ivy Natural Resources Fund	Class E	Contractual	8-1-2008	7-31-2019	1.27%		$	17		12b-1 Fees and/or Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy Science and Technology Fund	Class B	Contractual	2-26-2018	7-31-2020	2.03%		$	—		N/A
	Class E	Contractual	8-1-2008	7-31-2019	1.30%		$	15		12b-1 Fees and/or Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	29		12b-1 Fees and/or Shareholder Servicing
Ivy Securian Real Estate Securities Fund	All Classes	Contractual	12-3-2012	7-31-2019	N/A		$	238	(3)	Investment Management Fee
	Class E	Contractual	8-1-2008	7-31-2019	1.42%(4)		$	5		12b-1 Fees and/or Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—		N/A

* Not shown due to rounding.

(1) Reflects the lower expense limit which went into effect July 31, 2018. Prior to July 31, 2018, the expense limit in effect was 1.08%.

(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.

(3) The Fund’s investment management fee is being reduced by 0.10% of average daily net assets until July 31, 2019.

(4) Reflects the lower expense limit which went into effect July 31, 2018. Prior to July 31, 2018, the expense limit in effect was 1.43%.

Ivy Balanced Fund and Ivy Energy Fund were reimbursed $181 and $4, respectively, for reorganization fees incurred in each Fund’s previous fiscal year.

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2018 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

7. INTERFUND LENDING PROGRAM

Pursuant to an exemptive order issued by the SEC (“Order”), the Ivy Funds, Ivy Variable Insurance Portfolios and InvestEd Portfolios (collectively, the “Funds” only for purposes of this footnote 7) 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, 2018.

74 SEMIANNUAL REPORT 2018

8. AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands)

A summary of the transactions in affiliated companies during the period ended September 30, 2018 follows:

	3-31-18 Share Balance		Gross Additions		Gross Reductions			Realized Gain/(Loss)			Distributions Received		9-30-18 Share Balance		9-30-18 Value			Net Change in Unrealized Appreciation/ (Depreciation)
Ivy Asset Strategy Fund
Media Group Holdings LLC, Series H(1)		640	$	—	$	—		$	—		$	—		640	$	—	*	$	(2,640	)
Media Group Holdings LLC, Series T(1)		80		—		—			—			—		80		5,741			1,702
								$	—		$	—			$	5,741		$	(938	)
	3-31-18 Share Balance		Gross Additions		Gross Reductions			Realized Gain/(Loss)			Distributions Received		9-30-18 Share Balance		9-30-18 Value			Net Change in Unrealized Appreciation/ (Depreciation)
Ivy Science and Technology Fund
ACI Worldwide, Inc.(1)		12,076	$	—	$	(8,152	)	$	2,215		$	—		11,673	$	328,470		$	50,188
Aspen Technology, Inc.(1)		4,288		—		(3,039	)		26,296			—		3,978		453,167			117,927
Cypress Semiconductor Corp.		18,433		7,058		—			—			4,102		18,856		273,222			(46,456	)
Euronet Worldwide, Inc.(1)		3,558		—		—			—			—		3,558		356,561			75,781
Evogene Ltd.(1)		2,620		—		—			—			—		2,620		8,096			(223	)
Marrone Bio Innovations, Inc.(1)		4,435		20,169		—			—			—		23,285		42,612			13,950
Marrone Bio Innovations, Inc.(1)		18,850		—		(20,169	)		—			—		N/A		N/A			(15,922	)
Marrone Bio Innovations, Inc., expires 12-31-20		3,770		—		—			—			—		3,770		2,187			(319	)
Marrone Bio Innovations, Inc., expires 8-20-23		3,770		—		—			—			—		3,770		—	*		(17	)
Rambus, Inc.(1)		10,160		—		(19,342	)		4,924			—		8,332		90,903			(26,204	)
Switch, Inc., Class A		2,580		—		(54,125	)		(19,927	)		57		N/A		N/A			13,078
WNS (Holdings) Ltd. ADR(1)		8,010		—		(17,592	)		24,961			—		7,174		364,100			18,609
								$	38,469		$	4,159			$	1,919,318		$	200,392
	3-31-18 Principal Balance										Interest Received		9-30-18 Principal Balance					Net Change in Unrealized Depreciation
Marrone Bio Innovations, Inc., 8.000%, 8-20-20	$	4,713	$	—	$	—		$	—		$	187	$	4,713	$	4,590		$	(98	)

* Not shown due to rounding.

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

9. 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, 2018, were as follows:

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Asset Strategy Fund	$	—	$	991,064	$	45,551	$	1,201,927
Ivy Balanced Fund		86,433		517,824		8,859		901,137
Ivy Energy Fund		—		89,622		—		178,322
Ivy LaSalle Global Real Estate Fund		—		15,935		—		19,513
Ivy LaSalle Global Risk-Managed Real Estate Fund		—		15,594		—		30,060
Ivy Natural Resources Fund		—		78,205		—		134,753
Ivy Science and Technology Fund		—		445,690		—		900,783
Ivy Securian Real Estate Securities Fund		—		155,644		—		204,249

2018 SEMIANNUAL REPORT 75

10. LOANS OF PORTFOLIO SECURITIES ($ amounts in thousands)

The Funds may lend their portfolio securities only to borrowers that are approved by the Fund’s securities lending agent, The Bank of New York Mellon (“BNYM”). The borrower pledges and maintains with the Fund collateral consisting of cash or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% of the market value for all other securities. The collateral is maintained thereafter, at a market value equal to no less than 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund and any excess collateral is returned by the Fund on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

Cash received as collateral for securities on loan may be reinvested in the Dreyfus Institutional Preferred Government Money Market Fund — Institutional Shares or certain other registered money market funds and are disclosed in the Fund’s Schedule of Investments and are reflected in the Statement of Assets and Liabilities as cash collateral on securities loaned at value. Non-cash collateral, in the form of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, is not disclosed in the Fund’s Statement of Assets and Liabilities as it is held by the lending agent on behalf of the Fund and the Fund does not have the ability to re-hypothecate these securities. The securities on loan for each Fund are also disclosed in its Schedule of Investments. The total value of any securities on loan as of September 30, 2018 and the total value of the related cash collateral are disclosed in the Statement of Assets and Liabilities. Income earned by the Funds from securities lending activity is disclosed in the Statements of Operations.

The following is a summary of each Fund’s securities lending positions and related cash and non-cash collateral received as of September 30, 2018:

Fund	Market Value of Securities on Loan		Cash Collateral Received		Non-Cash Collateral Received		Total Collateral Received
Ivy Asset Strategy Fund	$	41,007	$	40,379	$	1,655	$	42,034
Ivy Balanced Fund		13,196		13,501		—		13,501
Ivy Energy Fund		8,702		3,910		4,985		8,895
Ivy Science and Technology Fund		236,969		177,249		64,952		242,201

The cash collateral received amounts presented in the table above are transactions accounted for as secured borrowings and have an overnight and continuous maturity. The proceeds from the cash collateral received is invested in registered money market funds.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower indemnity provided by BNYM. BNYM’s indemnity allows for full replacement of securities lent wherein BNYM will purchase the unreturned loaned securities on the open market by applying the proceeds of the collateral or to the extent such proceeds are insufficient or the collateral is unavailable, BNYM will purchase the unreturned loan securities at BNYM’s expense. However, the Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

11. PAYMENTS FROM AFFILIATES

In connection with the settlement of a derivative complaint initially filed against Ivy Investment Management Company, Waddell & Reed Investment Management Company, and certain current and former members of the Board of Trustees of Ivy Funds and the Board of Trustees of Waddell & Reed Advisors Funds (collectively, the “Trusts”), purportedly on behalf of the Trusts, defendants agreed to pay $19.9 million, for the benefit of Ivy Asset Strategy Fund in full settlement of all claims raised. In the action, Plaintiffs alleged generally that the Ivy Asset Strategy Fund and the Waddell & Reed Advisors Asset Strategy Fund (collectively, the “Funds”), made investments that did not comply with the Funds’ prospectuses. Plaintiffs also asserted that defendants breached their fiduciary duties to monitor and supervise the Funds’ investments. The lawsuit asserted a claim for breach of fiduciary duties against all defendants and a claim for breach of contract against the two named management companies. At the time of resolution, all claims related to the Waddell & Reed Asset Strategy Fund had been dismissed by the court, leaving only claims related to the Ivy Asset Strategy Fund pending. Although defendants denied any and all liability with respect to the allegations, all parties determined that settlement was in the best interest of the Ivy Asset Strategy Fund and its shareholders. Ivy Asset Strategy Fund shareholders of record as of April 16, 2018, the date the court preliminarily approved the settlement, received court approved notification of the settlement. Following the notification and a final approval hearing, on July 30, 2018, the court granted final approval of the settlement. Consistent

76 SEMIANNUAL REPORT 2018

with the terms of the settlement entered into by the parties, the Ivy Asset Strategy Fund received a settlement payment in the amount of $13,805,235 on September 21, 2018, representing the settlement amount, less court approved attorneys’ fees and administrative costs of notice to shareholders.

12. CAPITAL SHARE TRANSACTIONS (All amounts in thousands)

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

	Ivy Asset Strategy Fund												Ivy Balanced Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18						Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		5,755		$	141,096			14,617		$	354,511			2,609		$	66,707			4,930		$	123,846
Class B		10			217			26			592			20			490			91			2,222
Class C		319			7,385			870			19,210			322			8,182			1,142			28,064
Class E		60			1,459			147			3,455			—			—			—			—
Class I		3,626			89,861			5,066			120,971			3,021			77,319			5,683			141,027
Class N		85			2,127			87			2,098			77			1,968			557			13,931
Class R		122			2,952			262			6,001			41			1,046			85			2,119
Class Y		701			16,933			415			9,709			125			3,171			232			5,744
Shares issued in connection with merger:
Class A		N/A			N/A			N/A			N/A			N/A			N/A			31,254			787,218
Class B		N/A			N/A			N/A			N/A			N/A			N/A			100			2,492
Class C		N/A			N/A			N/A			N/A			N/A			N/A			419			10,458
Class E		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class I		N/A			N/A			N/A			N/A			N/A			N/A			21,053			530,401
Class N		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		413			10,179			1,326			31,108			351			9,116			1,075			26,512
Class B		10			220			99			2,178			5			117			79			1,933
Class C		120			2,806			1,205			26,811			46			1,200			783			19,160
Class E		13			323			48			1,123			—	*		2			—	*		9
Class I		237			5,916			816			19,379			291			7,544			1,036			25,548
Class N		1			33			3			64			4			90			20			490
Class R		10			250			50			1,172			2			59			20			487
Class Y		54			1,334			219			5,164			7			187			72			1,774
Shares redeemed:
Class A		(8,336	)		(203,919	)		(19,989	)		(463,977	)		(6,208	)		(158,435	)		(10,125	)		(251,446	)
Class B		(964	)		(22,157	)		(3,148	)		(68,550	)		(373	)		(9,393	)		(1,077	)		(26,452	)
Class C		(9,513	)		(220,332	)		(36,553	)		(813,846	)		(3,411	)		(86,274	)		(11,908	)		(294,231	)
Class E		(145	)		(3,572	)		(381	)		(8,857	)		—			—			—			—
Class I		(4,214	)		(104,552	)		(23,293	)		(535,987	)		(8,283	)		(211,319	)		(13,319	)		(331,140	)
Class N		(27	)		(665	)		(604	)		(14,465	)		(86	)		(2,194	)		(595	)		(14,941	)
Class R		(324	)		(7,835	)		(1,070	)		(24,491	)		(63	)		(1,595	)		(137	)		(3,410	)
Class Y		(1,087	)		(26,691	)		(4,197	)		(97,153	)		(412	)		(10,540	)		(1,822	)		(45,334	)
Net increase (decrease)		(13,074	)	$	(306,632	)		(63,979	)	$	(1,423,780	)		(11,915	)	$	(302,552	)		29,648		$	756,481

* Not shown due to rounding.

2018 SEMIANNUAL REPORT 77

	Ivy Energy Fund												Ivy LaSalle Global Real Estate Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18						Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,225		$	15,757			3,284		$	38,678			45		$	488			158		$	1,662
Class B		4			43			22			228			—			—			—			—
Class C		139			1,653			462			4,958			2			23			4			46
Class E		—			—			—			—			N/A			N/A			N/A			N/A
Class I		3,044			40,792			8,226			99,568			616			6,590			6,458			67,215
Class N		134			1,794			487			5,934			56			600			4,946			51,614
Class R		344			4,395			665			7,867			—	*		4			1			8
Class Y		590			7,658			2,325			26,232			—			—			1			10
Shares issued in connection with merger:
Class A		N/A			N/A			10,936			122,408			N/A			N/A			N/A			N/A
Class B		N/A			N/A			28			281			N/A			N/A			N/A			N/A
Class C		N/A			N/A			192			1,999			N/A			N/A			N/A			N/A
Class E		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class I		N/A			N/A			6,842			79,612			N/A			N/A			N/A			N/A
Class N		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			59			675			13			142			14			154
Class B		—			—			N/A			—			—			—			—	*		1
Class C		—			—			N/A			—			1			6			1			5
Class E		—			—			—	*		1			N/A			N/A			N/A			N/A
Class I		—			—			119			1,404			50			529			42			456
Class N		—			—			3			34			53			563			53			569
Class R		—			—			3			32			—			—			—			—
Class Y		—			—			14			162			—			—			—			—
Shares redeemed:
Class A		(3,099	)		(39,396	)		(7,827	)		(90,276	)		(114	)		(1,217	)		(495	)		(5,201	)
Class B		(38	)		(439	)		(160	)		(1,677	)		—	*		(2	)		(7	)		(67	)
Class C		(741	)		(8,720	)		(3,189	)		(34,412	)		(5	)		(58	)		(20	)		(208	)
Class E		—			—			—			—			N/A			N/A			N/A			N/A
Class I		(7,233	)		(95,377	)		(9,464	)		(113,106	)		(430	)		(4,612	)		(5,769	)		(60,463	)
Class N		(102	)		(1,355	)		(991	)		(11,796	)		(585	)		(6,294	)		(2,097	)		(22,655	)
Class R		(264	)		(3,298	)		(743	)		(8,597	)		—	*		(1	)		(1	)		(10	)
Class Y		(1,398	)		(18,164	)		(2,733	)		(32,510	)		(1	)		(7	)		(2	)		(26	)
Net increase (decrease)		(7,395	)	$	(94,657	)		8,560		$	97,699			(299	)	$	(3,246	)		3,287		$	33,110

* Not shown due to rounding.

78 SEMIANNUAL REPORT 2018

	Ivy LaSalle Global Risk-Managed Real Estate Fund												Ivy Natural Resources Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18						Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		44		$	479			244		$	2,637			810		$	12,398			3,409		$	52,780
Class B		—			—			1			7			—	*		6			6			74
Class C		3			30			13			136			36			455			174			2,116
Class E		N/A			N/A			N/A			N/A			16			251			34			508
Class I		644			7,044			3,676			39,868			803			12,920			2,070			31,343
Class N		4			45			40			428			40			640			181			2,650
Class R		44			478			217			2,331			97			1,472			260			3,732
Class Y		19			213			30			318			93			1,451			262			3,942
Shares issued in reinvestment of distributions to shareholders:
Class A		39			416			10			107			—			—			—			—
Class B		—	*		3			—			—			—			—			—			—
Class C		4			41			—	*		3			—			—			—			—
Class E		N/A			N/A			N/A			N/A			—			—			—			—
Class I		129			1,390			45			523			—			—			—			—
Class N		—	*		4			—			—			—			—			—			—
Class R		6			67			1			6			—			—			—			—
Class Y		4			37			1			8			—			—			—			—
Shares redeemed:
Class A		(306	)		(3,341	)		(2,173	)		(23,615	)		(2,441	)		(37,331	)		(6,063	)		(87,933	)
Class B		(5	)		(51	)		(10	)		(106	)		(72	)		(923	)		(302	)		(3,689	)
Class C		(75	)		(815	)		(364	)		(3,905	)		(723	)		(9,198	)		(5,061	)		(64,358	)
Class E		N/A			N/A			N/A			N/A			(26	)		(415	)		(62	)		(906	)
Class I		(1,751	)		(18,993	)		(3,985	)		(43,018	)		(1,905	)		(30,599	)		(4,406	)		(66,459	)
Class N		(2	)		(18	)		(8	)		(80	)		(50	)		(799	)		(442	)		(6,716	)
Class R		(10	)		(107	)		(28	)		(298	)		(227	)		(3,425	)		(642	)		(9,263	)
Class Y		(19	)		(204	)		(70	)		(753	)		(313	)		(4,902	)		(659	)		(9,865	)
Net decrease		(1,228	)	$	(13,282	)		(2,360	)	$	(25,403	)		(3,862	)	$	(57,999	)		(11,241	)	$	(152,044	)

* Not shown due to rounding.

2018 SEMIANNUAL REPORT 79

	Ivy Science and Technology Fund												Ivy Securian Real Estate Securities Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18						Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,903		$	133,729			3,894		$	254,320			208		$	4,923			615		$	15,390
Class B		13			748			44			2,321			—	*		4			2			46
Class C		287			17,335			782			43,348			8			191			20			510
Class E		28			1,952			73			4,644			6			138			10			270
Class I		3,481			271,071			7,130			509,393			723			17,055			2,115			53,715
Class N		325			25,557			473			33,135			4			95			34			910
Class R		236			16,310			660			41,452			4			85			13			316
Class Y		781			58,027			2,126			134,776			51			1,196			205			4,988
Shares issued in connection with merger:
Class A		N/A			N/A			44,508			2,994,242			N/A			N/A			N/A			N/A
Class B		N/A			N/A			157			8,730			N/A			N/A			N/A			N/A
Class C		N/A			N/A			268			15,505			N/A			N/A			N/A			N/A
Class E		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class I		N/A			N/A			9,636			712,791			N/A			N/A			N/A			N/A
Class N		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			1,027			65,446			39			934			1,024			24,898
Class B		—			—			53			2,815			—	*		1			12			280
Class C		—			—			774			42,510			1			12			57			1,348
Class E		—			—			32			2,001			1			18			18			431
Class I		—			—			1,136			79,582			44			1,070			873			21,412
Class N		—			—			84			5,915			—	*		5			4			92
Class R		—			—			128			7,953			—	*		3			3			79
Class Y		—			—			492			33,099			25			589			517			12,596
Shares redeemed:
Class A		(5,899	)		(415,591	)		(6,034	)		(388,285	)		(1,239	)		(29,112	)		(3,173	)		(80,507	)
Class B		(149	)		(8,589	)		(357	)		(18,884	)		(25	)		(558	)		(49	)		(1,214	)
Class C		(1,349	)		(81,255	)		(4,831	)		(269,875	)		(92	)		(2,138	)		(333	)		(7,980	)
Class E		(26	)		(1,823	)		(60	)		(3,787	)		(11	)		(267	)		(39	)		(980	)
Class I		(4,256	)		(331,114	)		(8,240	)		(577,154	)		(1,368	)		(32,390	)		(3,306	)		(84,462	)
Class N		(192	)		(15,027	)		(1,037	)		(73,636	)		(5	)		(127	)		(127	)		(3,453	)
Class R		(341	)		(23,315	)		(714	)		(44,997	)		(3	)		(70	)		(47	)		(1,206	)
Class Y		(1,521	)		(112,983	)		(5,415	)		(368,860	)		(439	)		(10,445	)		(1,315	)		(33,956	)
Net increase (decrease)		(6,679	)	$	(464,968	)		46,789		$	3,248,500			(2,068	)	$	(48,788	)		(2,867	)	$	(76,477	)

* Not shown due to rounding.

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

For Federal income tax purposes, cost of investments owned at September 30, 2018 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Asset Strategy Fund	$	3,487,130	$	534,959	$	793,706	$	(258,747	)
Ivy Balanced Fund		2,494,704		475,111		80,102		395,009
Ivy Energy Fund		426,274		166,146		15,772		150,374
Ivy LaSalle Global Real Estate Fund		64,222		3,903		1,396		2,507
Ivy LaSalle Global Risk-Managed Real Estate Fund		73,308		5,527		1,908		3,619
Ivy Natural Resources Fund		467,922		93,254		49,026		44,228
Ivy Science and Technology Fund		3,891,031		4,562,631		80,989		4,481,642
Ivy Securian Real Estate Securities Fund		351,634		109,651		413		109,238

80 SEMIANNUAL REPORT 2018

For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2018 and the post-October and late-year ordinary activity were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Tax Return of Capital		Post- October Capital Losses Deferred		Late-Year Ordinary Losses Deferred
Ivy Asset Strategy Fund	$	11,718	$	100,103	$	—	$	—	$	—
Ivy Balanced Fund		2,962		87,104		—		—		—
Ivy Energy Fund		—		—		—		—		1,522
Ivy LaSalle Global Real Estate Fund		1,496		—		—		—		—
Ivy LaSalle Global Risk-Managed Real Estate Fund		2,512		—		—		—		—
Ivy Natural Resources Fund		678		—		—		—		—
Ivy Science and Technology Fund		—		420,138		—		23,568		17,432
Ivy Securian Real Estate Securities Fund		1,514		3,937		—		—		—

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, 2018 and 2017 were as follows:

	March 31, 2018				March 31, 2017
Fund	Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains		Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains
Ivy Asset Strategy Fund	$	28,544	$	67,045	$	—	$	—
Ivy Balanced Fund		36,899		48,390		28,198		28,965
Ivy Energy Fund		2,469		—		—		—
Ivy LaSalle Global Real Estate Fund		1,203		35		638		137
Ivy LaSalle Global Risk-Managed Real Estate Fund		647		101		3,629		1,360
Ivy Natural Resources Fund		—		—		1,442		—
Ivy Science and Technology Fund		13,115		253,581		—		—
Ivy Securian Real Estate Securities Fund		7,416		56,076		12,802		49,890

(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, 2018 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. As of March 31, 2018, the capital loss carryovers were as follows:

	Post-Enactment
Fund	Short-Term Capital Loss Carryover		Long-Term Capital Loss Carryover
Ivy Asset Strategy Fund	$	—	$	—
Ivy Balanced Fund		—		—
Ivy Energy Fund		90,104		86,827
Ivy LaSalle Global Real Estate Fund		—		—
Ivy LaSalle Global Risk-Managed Real Estate Fund		920		1,153
Ivy Natural Resources Fund		281,522		337,187
Ivy Science and Technology Fund		—		—
Ivy Securian Real Estate Securities Fund		—		—

Waddell & Reed Advisors Energy Fund was merged into Ivy Energy Fund as of October 16, 2017. At the time of the merger, Waddell & Reed Advisors Energy Fund had capital loss carryovers available to offset future gains of the Ivy Energy Fund. These carryovers are annually limited to $3,780 plus any unused limitations from prior years and any built in gains realized.

2018 SEMIANNUAL REPORT 81

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENT IVY FUNDS (UNAUDITED)

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 14^th and 15^th, 2018, 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:

• Apollo Credit Management, LLC (with respect to Ivy Apollo Multi-Asset Income Fund and Ivy Apollo Strategic Income Fund);

• I.G. International Management Limited (with respect to Ivy IG International Small Cap Fund);

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

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

• Pictet Asset Management Limited and Pictet Asset Management SA (with respect to Ivy Pictet Targeted Return Bond Fund);

• PineBridge Investments, LLC (with respect to Ivy PineBridge High Yield Fund);

• ProShare Advisors, LLC (with respect to Ivy ProShares S&P 500 Dividend Aristocrats Index Fund, Ivy ProShares Russell 2000 Dividend Growers Index Fund, Ivy ProShares Interest Rate Hedged High Yield Index Fund, Ivy ProShares S&P 500 Bond Index Fund and Ivy ProShares MSCI ACWI Index Fund); and

• Securian Asset Management, Inc. (with respect to Ivy Securian Core Bond Fund and Ivy Securian Real Estate Securities Fund).

Each subadviser is referred to herein as a “Subadviser,” and the Management Agreement and the Investment Subadvisory Agreements are referred to collectively herein as the “Agreements.”

The Board’s Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel explained the factors that the Board should consider as part of its review of the 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 IICO’s and the Subadvisers’ 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 15(c) due diligence request lists 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 2018. They further reviewed these materials extensively 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 14-15, 2018 Board meeting, during which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board’s determination to approve the Agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to the Funds by IICO and each Subadviser, taking into account the large amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence requests submitted on its behalf by independent legal counsel 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 performance of the Funds, IICO’s investment risk management function, and the on-going changes IICO has been undertaking for itself, the Trust and the overall fund complex. As such, the Board examined all of IICO’s activities in light of 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 shareholders, reduce the Funds’ expenses and enhance the performance of the Funds, particularly in the context of substantial industry change and regulatory developments.

82 SEMIANNUAL REPORT 2018

The Board likewise considered the knowledge it had received from its regular meetings, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the other services provided to the Funds by IICO and each Subadviser (such as managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to each Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable laws and regulations). The Board also took into account the compliance environment at IICO and each Subadviser, noting the resources that IICO has dedicated towards compliance. The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with the 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 took note of the caps that management previously had agreed to on shareholder servicing costs. The Board also considered the benefits that accrue to each service provider organization from its respective relationship with the Funds, including the fact that a variety of services are provided by affiliates of IICO, including distribution, administrative and Fund accounting services, and, as discussed above, shareholder servicing. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receives any additional direct or indirect benefits that would preclude the Board from approving the continuation of the Management Agreement with IICO or any Investment Subadvisory Agreement with a Subadviser.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds’ shareholders. The Board considered the fact that as a Fund’s assets have grown, the expenses of that Fund generally have fallen, although the Board took into account that the overall assets of the Funds have fallen during the prior year. Additionally, in that regard, 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 in particular 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 and fee reduction 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;

2018 SEMIANNUAL REPORT 83

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.

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, 2018, approximately 15% of the Funds were in the top quartile of performance and 33% of the 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 49% of the Funds were in the top two quartiles in the one-year period, and that 31% 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 4% below the average total expenses of their respective Broadridge Expense Group peers and flat compared to the average total expenses for their Broadridge Expense Universes. The management fees for the Funds were 4% over the average management fees of their respective Broadridge Expense Group peers and 6% 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 relative to other complexes is reasonable. Finally, the report noted that IICO has continued to invest in AUM growth, which is designed to help drive down fund expenses and attract top investment management talent, as well as in fund mergers, which could help drive down expenses, both of which can benefit the Funds’ investors.

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

Conclusions

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

84 SEMIANNUAL REPORT 2018

PROXY VOTING INFORMATION IVY FUNDS (UNAUDITED)

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.

2018 SEMIANNUAL REPORT 85

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86 SEMIANNUAL REPORT 2018

THE IVY FUNDS FAMILY

DOMESTIC EQUITY FUNDS

Ivy Accumulative Fund

Ivy Core Equity 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 Emerging Markets Equity 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

Ivy Pictet Emerging Markets Local Currency Debt Fund

Ivy Pzena International Value 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 LaSalle Global Real Estate Fund

Ivy LaSalle Global Risk-Managed Real Estate Fund

Ivy Natural Resources Fund

Ivy Science and Technology Fund

Ivy Securian Real Estate Securities Fund

Ivy Wilshire Global Allocation Fund

FIXED INCOME FUNDS

Ivy Apollo Strategic Income Fund

Ivy California Municipal High Income Fund

Ivy Corporate Bond Fund

Ivy Crossover Credit Fund

Ivy Global Bond Fund

Ivy Government Securities 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

Ivy Securian Core Bond Fund

MONEY MARKET FUNDS

Ivy Cash Management Fund

Ivy Government Money Market 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.

2018 SEMIANNUAL REPORT 87

SEMIANN-IVYSPEC (9/18)

  Semiannual Report   SEPTEMBER 30, 2018

Ticker

Class A

Class B

Class C

Class E

Class I

Class N

Class R

Class T

Class Y

IVY FUNDS

Ivy Core Equity Fund

WCEAX

WCEBX

WTRCX

ICFEX

ICIEX

ICEQX

IYCEX

WCEYX

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

IBIEX

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 Pzena International Value Fund

ICDAX

ICDBX

ICDCX

ICVIX

ICNGX

IYCUX

ICDYX

Ivy Securian Core Bond Fund

IBOAX

IBOBX

IBOCX

IVBEX

IVBIX

IBNDX

IYBDX

IBOYX

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 Core Equity Fund	11
Ivy Emerging Markets Equity Fund	15
Ivy European Opportunities Fund	19
Ivy Global Bond Fund	22
Ivy Global Equity Income Fund	28
Ivy Global Growth Fund	32
Ivy Global Income Allocation Fund	36
Ivy Government Money Market Fund	42
Ivy High Income Fund	44
Ivy International Core Equity Fund	53
Ivy Large Cap Growth Fund	58
Ivy Limited-Term Bond Fund	61
Ivy Managed International Opportunities Fund	66
Ivy Micro Cap Growth Fund	68
Ivy Mid Cap Growth Fund	71
Ivy Mid Cap Income Opportunities Fund	75
Ivy Municipal Bond Fund	78
Ivy Municipal High Income Fund	87
Ivy Pzena International Value Fund	97
Ivy Securian Core Bond Fund	100
Ivy Small Cap Core Fund	109
Ivy Small Cap Growth Fund	112
Ivy Tax-Managed Equity Fund	117
Ivy Value Fund	120
Statements of Assets and Liabilities	123
Statements of Operations	127
Statements of Changes in Net Assets	131
Financial Highlights	140
Notes to Financial Statements	188
Renewal of Investment Management Agreements	237
Proxy Voting Information	240
Quarterly Portfolio Schedule Information	240
IRA Disclosure	240

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, 2018 (UNAUDITED)
Philip J. Sanders, CFA

Dear Shareholder,

While most of the period remained relatively calm, market volatility returned toward the end of the timeframe. As 2018 progressed, trade disputes, geopolitical tensions and uncertain global growth rates provided a choppy ride for investors.

Economic growth is poised to finish 2018 on solid footing, as global inflation remains somewhat tepid. We believe global gross domestic product (GDP) is on track for a 3.7% growth rate in 2018, taking into account some minor downward revisions to our forecast because of isolated emerging market weakness.

The U.S. continues to provide a strong foundation across the global economic stage. Domestic capital expenditures (capex) are solid and small business confidence is at an all-time high. In addition, consumer spending has held up well despite higher gasoline prices. We believe the U.S. growth rate will average around 3% annualized in 2018.

The deterioration in eurozone economic data seems to be waning following an agreement between the U.S. and European Union (EU) to discuss a reduction in tariffs on industrial goods. Brexit negotiations between the U.K. and EU continue to be choppy, which has caused some delays in anticipated capex spending for the eurozone. While we believe the two parties will come to a resolution for the U.K.’s exit from the EU prior to the March 2019 deadline, the ongoing negotiations may cause lingering economic tumult until a deal can be reached. We expect eurozone GDP growth at an average annual rate around 2% in 2018.

While the European Central Bank reduced the amount of its asset purchases during the third quarter, it has committed to keeping rates low for an extended period. We think that decision is likely to continue to support the EU economy. In addition, the Bank of England recently raised interest rates and we think it is set to continue increasing rates gradually, barring any unforeseen Brexit issues.

Much attention of late has been focused on emerging markets. China’s economy has been weaker because of a combination of deleveraging and the institution of new pollution controls on select industries. These factors, coupled with concerns about an escalating trade war with the U.S., have pushed China’s policymakers to begin to ease policy. We believe recent announcements of tax cuts and increased infrastructure spending in addition to lower interest rates will stabilize China’s economy during the fourth quarter.

Currency crises plagued Turkey and Argentina throughout the third quarter, which sent tremors through other emerging market economies, including South Africa. Emerging markets continue to face headwinds from international trade uncertainty and a strong U.S. dollar. We believe emerging

markets continue to offer a sound longer term fundamental outlook; however, market volatility is likely to persist until there is more clarity surrounding potential risks.

Overall, expanding valuations and corporate earnings growth have been key drivers in the equity markets. We believe continued earnings growth will need to carry more of the burden going forward. We see potential catalysts for growth in several areas and industries and our team continues to seek investment opportunities around the globe.

We remain attuned to a range of risks investors may face in the current environment, and believe it is important to stay focused on the fundamentals and merits of individual market sectors, industries and companies when making investment decisions. Those fundamentals historically have tended to outweigh external factors such as government policies and regulations. While those can affect every business and investor, we think the innovation and management skill within individual companies ultimately drive long-term stock prices.

Economic Snapshot

	9/30/2018		3/31/2018
S&P 500 Index		2,913.98		2,640.87
MSCI EAFE Index		1,973.60		2,005.67
10-Year Treasury Yield		3.05%		2.74%
U.S. unemployment rate		3.7%		4.1%
30-year fixed mortgage rate		4.72%		4.44%
Oil price per barrel	$	73.25	$	64.94

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.

2018 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, 2018.

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 shares, if your Fund account balance

is below $650 on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value as such additional expenses are not reflected in the information provided in the following table. Additional fees have the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), exchange fees or account fees. Therefore, the second section in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expenses paid may be impacted by expense reduction arrangements. If those arrangements had not been in place, expenses paid would have been higher. See Note 6 to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy Core Equity Fund
Class A	$	1,000	$	1,104.20	$	5.37	$	1,000	$	1,019.98	$	5.15		1.02%
Class B**	$	1,000	$	1,099.10	$	10.92	$	1,000	$	1,014.63	$	10.48		2.08%
Class C	$	1,000	$	1,100.10	$	9.66	$	1,000	$	1,015.83	$	9.27		1.84%
Class E	$	1,000	$	1,104.00	$	5.89	$	1,000	$	1,019.45	$	5.65		1.12%	(4)
Class I	$	1,000	$	1,105.60	$	4.32	$	1,000	$	1,021.01	$	4.14		0.81%
Class N	$	1,000	$	1,106.60	$	3.48	$	1,000	$	1,021.80	$	3.34		0.65%
Class R	$	1,000	$	1,102.20	$	7.36	$	1,000	$	1,018.03	$	7.06		1.40%
Class Y	$	1,000	$	1,105.50	$	4.42	$	1,000	$	1,020.85	$	4.24		0.84%

See footnotes on page 10.

4 SEMIANNUAL REPORT 2018

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy Emerging Markets Equity Fund
Class A	$	1,000	$	850.00	$	6.57	$	1,000	$	1,017.93	$	7.16		1.42%
Class B**	$	1,000	$	846.20	$	10.89	$	1,000	$	1,013.24	$	11.88		2.36%
Class C	$	1,000	$	847.30	$	9.70	$	1,000	$	1,014.61	$	10.58		2.09%
Class E***	$	1,000	$	851.00	$	5.46	$	1,000	$	1,019.14	$	5.96		1.18%
Class I	$	1,000	$	852.00	$	4.63	$	1,000	$	1,020.10	$	5.05		0.99%
Class N	$	1,000	$	852.40	$	4.35	$	1,000	$	1,020.37	$	4.75		0.94%
Class R	$	1,000	$	849.10	$	7.77	$	1,000	$	1,016.66	$	8.47		1.68%
Class T	$	1,000	$	851.10	$	5.46	$	1,000	$	1,019.16	$	5.96		1.18%
Class Y	$	1,000	$	850.60	$	6.20	$	1,000	$	1,018.38	$	6.76		1.33%
Ivy European Opportunities Fund
Class A	$	1,000	$	996.90	$	8.39	$	1,000	$	1,016.70	$	8.47		1.67%
Class B**	$	1,000	$	991.70	$	13.54	$	1,000	$	1,011.44	$	13.68		2.72%
Class C	$	1,000	$	993.80	$	11.17	$	1,000	$	1,013.84	$	11.28		2.24%
Class E***	$	1,000	$	998.50	$	6.79	$	1,000	$	1,018.27	$	6.86		1.36%
Class I	$	1,000	$	998.80	$	6.30	$	1,000	$	1,018.73	$	6.36		1.26%
Class N	$	1,000	$	999.10	$	5.30	$	1,000	$	1,019.73	$	5.35		1.07%
Class R	$	1,000	$	996.00	$	9.18	$	1,000	$	1,015.86	$	9.27		1.84%
Class Y	$	1,000	$	997.90	$	7.49	$	1,000	$	1,017.56	$	7.57		1.50%
Ivy Global Bond Fund
Class A	$	1,000	$	996.90	$	4.99	$	1,000	$	1,020.11	$	5.05		0.99%
Class B**	$	1,000	$	993.90	$	7.88	$	1,000	$	1,017.12	$	7.97		1.58%
Class C	$	1,000	$	993.30	$	8.57	$	1,000	$	1,016.47	$	8.67		1.71%
Class I	$	1,000	$	998.30	$	3.70	$	1,000	$	1,021.36	$	3.74		0.74%
Class N	$	1,000	$	998.30	$	3.60	$	1,000	$	1,021.45	$	3.64		0.72%
Class R	$	1,000	$	994.60	$	7.38	$	1,000	$	1,017.71	$	7.47		1.47%
Class Y	$	1,000	$	996.90	$	4.99	$	1,000	$	1,020.09	$	5.05		0.99%
Ivy Global Equity Income Fund
Class A	$	1,000	$	1,020.30	$	6.36	$	1,000	$	1,018.82	$	6.36		1.25%	(5)
Class B**	$	1,000	$	1,016.00	$	9.78	$	1,000	$	1,015.37	$	9.77		1.93%
Class C	$	1,000	$	1,017.00	$	9.68	$	1,000	$	1,015.42	$	9.67		1.92%
Class E	$	1,000	$	1,020.90	$	5.86	$	1,000	$	1,019.25	$	5.86		1.16%	(6)
Class I	$	1,000	$	1,021.90	$	4.75	$	1,000	$	1,020.34	$	4.75		0.94%	(7)
Class N	$	1,000	$	1,022.50	$	4.05	$	1,000	$	1,021.10	$	4.04		0.79%
Class R	$	1,000	$	1,019.10	$	7.77	$	1,000	$	1,017.41	$	7.77		1.53%
Class Y	$	1,000	$	1,020.50	$	6.26	$	1,000	$	1,018.82	$	6.26		1.25%	(8)

See footnotes on page 10.

2018 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 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy Global Growth Fund
Class A	$	1,000	$	1,084.20	$	7.19	$	1,000	$	1,018.15	$	6.96		1.38%
Class B**	$	1,000	$	1,079.20	$	11.85	$	1,000	$	1,013.70	$	11.48		2.27%
Class C	$	1,000	$	1,080.10	$	11.13	$	1,000	$	1,014.36	$	10.78		2.14%
Class E	$	1,000	$	1,085.10	$	6.15	$	1,000	$	1,019.12	$	5.96		1.19%
Class I	$	1,000	$	1,085.70	$	5.53	$	1,000	$	1,019.74	$	5.35		1.06%
Class N	$	1,000	$	1,086.50	$	4.90	$	1,000	$	1,020.40	$	4.75		0.93%
Class R	$	1,000	$	1,082.50	$	8.75	$	1,000	$	1,016.67	$	8.47		1.67%
Class Y	$	1,000	$	1,084.30	$	6.98	$	1,000	$	1,018.34	$	6.76		1.34%
Ivy Global Income Allocation Fund
Class A	$	1,000	$	1,035.00	$	6.41	$	1,000	$	1,018.73	$	6.36		1.26%
Class B**	$	1,000	$	1,030.90	$	11.07	$	1,000	$	1,014.22	$	10.98		2.16%
Class C	$	1,000	$	1,032.30	$	9.55	$	1,000	$	1,015.62	$	9.47		1.88%
Class E	$	1,000	$	1,035.40	$	6.72	$	1,000	$	1,018.49	$	6.66		1.31%
Class I	$	1,000	$	1,036.90	$	4.89	$	1,000	$	1,020.24	$	4.85		0.96%
Class N	$	1,000	$	1,037.70	$	4.08	$	1,000	$	1,021.09	$	4.04		0.79%
Class R	$	1,000	$	1,034.10	$	7.93	$	1,000	$	1,017.30	$	7.87		1.55%
Class Y	$	1,000	$	1,035.90	$	6.11	$	1,000	$	1,019.11	$	6.06		1.19%	(9)
Ivy Government Money Market Fund
Class A	$	1,000	$	1,005.80	$	4.11	$	1,000	$	1,020.96	$	4.14		0.82%
Class B**	$	1,000	$	1,001.20	$	8.71	$	1,000	$	1,016.41	$	8.77		1.73%
Class C	$	1,000	$	1,001.80	$	8.11	$	1,000	$	1,016.98	$	8.17		1.61%
Class E	$	1,000	$	1,006.40	$	3.51	$	1,000	$	1,021.57	$	3.54		0.70%	(4)
Class N	$	1,000	$	1,007.30	$	2.61	$	1,000	$	1,022.48	$	2.63		0.52%
Ivy High Income Fund
Class A	$	1,000	$	1,030.60	$	4.87	$	1,000	$	1,020.30	$	4.85		0.95%
Class B**	$	1,000	$	1,026.80	$	8.72	$	1,000	$	1,016.49	$	8.67		1.71%
Class C	$	1,000	$	1,027.20	$	8.41	$	1,000	$	1,016.77	$	8.37		1.66%
Class E	$	1,000	$	1,030.00	$	5.58	$	1,000	$	1,019.55	$	5.55		1.10%	(4)
Class I	$	1,000	$	1,032.00	$	3.66	$	1,000	$	1,021.45	$	3.64		0.72%
Class N	$	1,000	$	1,032.90	$	2.85	$	1,000	$	1,022.24	$	2.83		0.56%
Class R	$	1,000	$	1,029.00	$	6.59	$	1,000	$	1,018.52	$	6.56		1.31%
Class T	$	1,000	$	1,031.40	$	4.16	$	1,000	$	1,020.94	$	4.14		0.82%
Class Y	$	1,000	$	1,030.80	$	4.87	$	1,000	$	1,020.30	$	4.85		0.95%

See footnotes on page 10.

6 SEMIANNUAL REPORT 2018

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy International Core Equity Fund
Class A	$	1,000	$	981.50	$	6.24	$	1,000	$	1,018.80	$	6.36		1.25%
Class B**	$	1,000	$	977.40	$	10.28	$	1,000	$	1,014.66	$	10.48		2.08%
Class C	$	1,000	$	978.60	$	9.40	$	1,000	$	1,015.58	$	9.57		1.89%
Class E	$	1,000	$	981.10	$	6.44	$	1,000	$	1,018.54	$	6.56		1.30%	(4)
Class I	$	1,000	$	983.60	$	4.46	$	1,000	$	1,020.58	$	4.55		0.89%
Class N	$	1,000	$	984.10	$	3.97	$	1,000	$	1,021.10	$	4.04		0.79%
Class R	$	1,000	$	980.00	$	7.62	$	1,000	$	1,017.38	$	7.77		1.53%
Class T	$	1,000	$	983.00	$	5.16	$	1,000	$	1,019.85	$	5.25		1.04%
Class Y	$	1,000	$	982.10	$	5.95	$	1,000	$	1,019.10	$	6.06		1.19%
Ivy Large Cap Growth Fund
Class A	$	1,000	$	1,150.50	$	5.70	$	1,000	$	1,019.80	$	5.35		1.05%
Class B**	$	1,000	$	1,145.50	$	10.62	$	1,000	$	1,015.22	$	9.98		1.97%
Class C	$	1,000	$	1,146.30	$	9.66	$	1,000	$	1,016.02	$	9.07		1.80%
Class E	$	1,000	$	1,150.30	$	6.24	$	1,000	$	1,019.30	$	5.86		1.15%
Class I	$	1,000	$	1,152.10	$	4.20	$	1,000	$	1,021.18	$	3.94		0.78%	(4)
Class N	$	1,000	$	1,152.70	$	3.55	$	1,000	$	1,021.73	$	3.34		0.66%
Class R	$	1,000	$	1,148.20	$	7.63	$	1,000	$	1,018.01	$	7.16		1.41%
Class Y	$	1,000	$	1,150.60	$	5.59	$	1,000	$	1,019.87	$	5.25		1.04%
Ivy Limited-Term Bond Fund
Class A	$	1,000	$	1,005.90	$	4.61	$	1,000	$	1,020.48	$	4.65		0.91%
Class B**	$	1,000	$	1,001.60	$	8.81	$	1,000	$	1,016.26	$	8.87		1.76%
Class C	$	1,000	$	1,002.20	$	8.31	$	1,000	$	1,016.78	$	8.37		1.65%
Class E	$	1,000	$	1,005.60	$	4.91	$	1,000	$	1,020.20	$	4.95		0.97%	(4)
Class I	$	1,000	$	1,007.10	$	3.41	$	1,000	$	1,021.68	$	3.44		0.68%
Class N	$	1,000	$	1,007.90	$	2.61	$	1,000	$	1,022.48	$	2.63		0.52%
Class R	$	1,000	$	1,004.20	$	6.31	$	1,000	$	1,018.76	$	6.36		1.26%
Class Y	$	1,000	$	1,005.90	$	4.61	$	1,000	$	1,020.48	$	4.65		0.91%
Ivy Managed International Opportunities Fund(3)
Class A	$	1,000	$	973.90	$	2.47	$	1,000	$	1,022.60	$	2.53		0.49%
Class B**	$	1,000	$	969.00	$	6.89	$	1,000	$	1,018.02	$	7.06		1.40%
Class C	$	1,000	$	969.90	$	6.40	$	1,000	$	1,018.58	$	6.56		1.29%
Class E***	$	1,000	$	973.90	$	1.97	$	1,000	$	1,023.03	$	2.02		0.41%
Class I	$	1,000	$	975.70	$	0.79	$	1,000	$	1,024.27	$	0.81		0.16%
Class N	$	1,000	$	975.70	$	0.79	$	1,000	$	1,024.26	$	0.81		0.16%
Class R	$	1,000	$	973.80	$	3.26	$	1,000	$	1,021.78	$	3.34		0.66%
Class Y	$	1,000	$	974.70	$	1.88	$	1,000	$	1,023.16	$	1.92		0.38%

See footnotes on page 10.

2018 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 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy Micro Cap Growth Fund
Class A	$	1,000	$	1,278.20	$	9.11	$	1,000	$	1,017.02	$	8.07		1.60%
Class B**	$	1,000	$	1,272.70	$	14.43	$	1,000	$	1,012.39	$	12.78		2.53%
Class C	$	1,000	$	1,273.90	$	13.42	$	1,000	$	1,013.30	$	11.88		2.35%
Class I	$	1,000	$	1,280.30	$	7.41	$	1,000	$	1,018.57	$	6.56		1.30%
Class N	$	1,000	$	1,281.50	$	6.50	$	1,000	$	1,019.40	$	5.76		1.13%
Class R	$	1,000	$	1,276.80	$	10.59	$	1,000	$	1,015.72	$	9.37		1.86%
Class Y	$	1,000	$	1,279.00	$	8.66	$	1,000	$	1,017.51	$	7.67		1.51%
Ivy Mid Cap Growth Fund
Class A	$	1,000	$	1,154.60	$	6.68	$	1,000	$	1,018.83	$	6.26		1.24%
Class B**	$	1,000	$	1,149.60	$	11.18	$	1,000	$	1,014.64	$	10.48		2.08%
Class C	$	1,000	$	1,150.70	$	10.43	$	1,000	$	1,015.33	$	9.77		1.94%
Class E	$	1,000	$	1,154.20	$	7.00	$	1,000	$	1,018.59	$	6.56		1.29%	(4)
Class I	$	1,000	$	1,156.40	$	5.07	$	1,000	$	1,020.39	$	4.75		0.93%	(4)(10)
Class N	$	1,000	$	1,157.20	$	4.42	$	1,000	$	1,020.96	$	4.14		0.82%	(4)
Class R	$	1,000	$	1,152.60	$	8.50	$	1,000	$	1,017.21	$	7.97		1.57%
Class Y	$	1,000	$	1,154.80	$	6.57	$	1,000	$	1,018.95	$	6.16		1.22%
Ivy Mid Cap Income Opportunities Fund
Class A	$	1,000	$	1,089.10	$	7.10	$	1,000	$	1,018.30	$	6.86		1.35%
Class C	$	1,000	$	1,084.90	$	10.84	$	1,000	$	1,014.69	$	10.48		2.07%
Class E	$	1,000	$	1,090.00	$	6.27	$	1,000	$	1,019.11	$	6.06		1.19%
Class I	$	1,000	$	1,090.60	$	5.54	$	1,000	$	1,019.80	$	5.35		1.05%
Class N	$	1,000	$	1,091.70	$	5.02	$	1,000	$	1,020.31	$	4.85		0.95%
Class R	$	1,000	$	1,087.50	$	8.87	$	1,000	$	1,016.61	$	8.57		1.69%
Class Y	$	1,000	$	1,089.10	$	7.10	$	1,000	$	1,018.30	$	6.86		1.35%
Ivy Municipal Bond Fund
Class A	$	1,000	$	1,004.40	$	4.21	$	1,000	$	1,020.85	$	4.24		0.84%
Class B**	$	1,000	$	1,001.70	$	8.01	$	1,000	$	1,017.08	$	8.07		1.58%
Class C	$	1,000	$	1,001.10	$	8.60	$	1,000	$	1,016.51	$	8.67		1.71%
Class I	$	1,000	$	1,006.20	$	3.51	$	1,000	$	1,021.56	$	3.54		0.70%
Class N	$	1,000	$	1,006.30	$	3.01	$	1,000	$	1,022.05	$	3.03		0.60%
Class Y	$	1,000	$	1,005.00	$	4.21	$	1,000	$	1,020.85	$	4.24		0.84%
Ivy Municipal High Income Fund
Class A	$	1,000	$	1,014.60	$	4.43	$	1,000	$	1,020.70	$	4.45		0.87%
Class B**	$	1,000	$	1,011.60	$	7.85	$	1,000	$	1,017.27	$	7.87		1.56%
Class C	$	1,000	$	1,011.40	$	7.95	$	1,000	$	1,017.14	$	7.97		1.58%
Class I	$	1,000	$	1,016.00	$	3.33	$	1,000	$	1,021.76	$	3.34		0.66%	(4)
Class N	$	1,000	$	1,016.60	$	2.82	$	1,000	$	1,022.24	$	2.83		0.56%
Class Y	$	1,000	$	1,015.00	$	4.43	$	1,000	$	1,020.71	$	4.45		0.87%

See footnotes on page 10.

8 SEMIANNUAL REPORT 2018

ILLUSTRATION OF FUND EXPENSES IVY FUNDS

(UNAUDITED)

	Actual(1)						Hypothetical(2)						Annualized Expense Ratio Based on the Six-Month Period
Fund	Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy Pzena International Value Fund
Class A	$	1,000	$	1,016.60	$	7.97	$	1,000	$	1,017.15	$	7.97		1.58%
Class B**	$	1,000	$	1,008.60	$	15.97	$	1,000	$	1,009.14	$	15.97		3.18%
Class C	$	1,000	$	1,014.10	$	10.88	$	1,000	$	1,014.31	$	10.88		2.14%
Class I	$	1,000	$	1,019.50	$	5.86	$	1,000	$	1,019.26	$	5.86		1.16%
Class N	$	1,000	$	1,019.40	$	4.64	$	1,000	$	1,020.44	$	4.65		0.92%
Class R	$	1,000	$	1,016.10	$	8.77	$	1,000	$	1,016.38	$	8.77		1.73%
Class Y	$	1,000	$	1,018.00	$	7.06	$	1,000	$	1,018.03	$	7.06		1.40%
Ivy Securian Core Bond Fund
Class A	$	1,000	$	1,000.50	$	5.20	$	1,000	$	1,019.83	$	5.25		1.04%
Class B**	$	1,000	$	996.70	$	8.99	$	1,000	$	1,016.06	$	9.07		1.80%
Class C	$	1,000	$	997.20	$	8.49	$	1,000	$	1,016.56	$	8.57		1.70%
Class E	$	1,000	$	1,000.70	$	5.10	$	1,000	$	1,019.97	$	5.15		1.02%	(4)
Class I	$	1,000	$	1,003.10	$	2.70	$	1,000	$	1,022.36	$	2.73		0.54%
Class N	$	1,000	$	1,003.00	$	2.70	$	1,000	$	1,022.36	$	2.73		0.54%
Class R	$	1,000	$	999.10	$	6.50	$	1,000	$	1,018.54	$	6.56		1.30%
Class Y	$	1,000	$	1,001.00	$	4.70	$	1,000	$	1,020.33	$	4.75		0.94%
Ivy Small Cap Core Fund
Class A	$	1,000	$	1,163.40	$	7.68	$	1,000	$	1,017.99	$	7.16		1.41%
Class B**	$	1,000	$	1,158.90	$	12.20	$	1,000	$	1,013.78	$	11.38		2.25%
Class C	$	1,000	$	1,160.00	$	11.23	$	1,000	$	1,014.70	$	10.48		2.07%
Class E	$	1,000	$	1,165.60	$	6.39	$	1,000	$	1,019.19	$	5.96		1.17%
Class I	$	1,000	$	1,166.30	$	5.52	$	1,000	$	1,020.00	$	5.15		1.01%	(4)
Class N	$	1,000	$	1,166.80	$	4.98	$	1,000	$	1,020.49	$	4.65		0.91%	(4)
Class R	$	1,000	$	1,162.80	$	8.98	$	1,000	$	1,016.75	$	8.37		1.66%
Class T	$	1,000	$	1,165.30	$	6.28	$	1,000	$	1,019.24	$	5.86		1.16%
Class Y	$	1,000	$	1,164.60	$	7.14	$	1,000	$	1,018.42	$	6.66		1.33%
Ivy Small Cap Growth Fund
Class A	$	1,000	$	1,147.10	$	7.09	$	1,000	$	1,018.45	$	6.66		1.32%
Class B**	$	1,000	$	1,141.70	$	11.99	$	1,000	$	1,013.89	$	11.28		2.23%
Class C	$	1,000	$	1,142.90	$	10.93	$	1,000	$	1,014.87	$	10.28		2.03%
Class E	$	1,000	$	1,146.80	$	7.30	$	1,000	$	1,018.30	$	6.86		1.35%
Class I	$	1,000	$	1,148.60	$	5.37	$	1,000	$	1,020.09	$	5.05		0.99%	(4)
Class N	$	1,000	$	1,149.40	$	4.73	$	1,000	$	1,020.67	$	4.45		0.88%
Class R	$	1,000	$	1,145.60	$	8.69	$	1,000	$	1,016.96	$	8.17		1.62%
Class T	$	1,000	$	1,148.20	$	6.01	$	1,000	$	1,019.44	$	5.65		1.12%
Class Y	$	1,000	$	1,147.40	$	6.87	$	1,000	$	1,018.68	$	6.46		1.27%

See footnotes on page 10.

2018 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 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*		Beginning Account Value 3-31-18		Ending Account Value 9-30-18		Expenses Paid During Period*
Ivy Tax-Managed Equity Fund
Class A	$	1,000	$	1,146.00	$	5.69	$	1,000	$	1,019.82	$	5.35		1.06%
Class B**	$	1,000	$	1,142.40	$	9.11	$	1,000	$	1,016.61	$	8.57		1.69%
Class C	$	1,000	$	1,141.40	$	10.17	$	1,000	$	1,015.60	$	9.57		1.89%
Class I	$	1,000	$	1,146.90	$	4.83	$	1,000	$	1,020.61	$	4.55		0.89%
Class N	$	1,000	$	1,147.90	$	3.97	$	1,000	$	1,021.34	$	3.74		0.74%
Class Y	$	1,000	$	1,146.10	$	5.69	$	1,000	$	1,019.78	$	5.35		1.06%
Ivy Value Fund
Class A	$	1,000	$	1,096.90	$	6.40	$	1,000	$	1,018.98	$	6.16		1.21%
Class B**	$	1,000	$	1,091.50	$	11.40	$	1,000	$	1,014.17	$	10.98		2.17%
Class C	$	1,000	$	1,092.90	$	10.15	$	1,000	$	1,015.38	$	9.77		1.93%
Class E***	$	1,000	$	1,098.10	$	5.35	$	1,000	$	1,020.01	$	5.15		1.01%
Class I	$	1,000	$	1,098.30	$	4.83	$	1,000	$	1,020.49	$	4.65		0.91%
Class N	$	1,000	$	1,099.30	$	3.99	$	1,000	$	1,021.28	$	3.84		0.76%
Class R	$	1,000	$	1,095.20	$	8.07	$	1,000	$	1,017.40	$	7.77		1.53%
Class Y	$	1,000	$	1,097.20	$	6.08	$	1,000	$	1,019.29	$	5.86		1.15%

* 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, 2018, 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.

*** Class share is closed to investment.

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

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

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

(4) Reflects the lower expense limit which went into effect July 31, 2018.

(5) Annualized expense ratio based on the period excluding reorganization expenses was 1.24%.

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

(7) Annualized expense ratio based on the period excluding reorganization expenses was 0.92%.

(8) Annualized expense ratio based on the period excluding reorganization expenses was 1.19%.

(9) Annualized expense ratio based on the period excluding reorganization expenses was 1.17%.

(10) Annualized expense ratio based on the period excluding reorganization expenses was 0.92%.

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

10 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY CORE EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	98.1%
Information Technology	30.3%
Financials	12.8%
Industrials	11.7%
Health Care	11.7%
Consumer Discretionary	11.4%
Energy	6.4%
Consumer Staples	6.1%
Materials	5.2%
Telecommunication Services	1.4%
Utilities	1.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.9%

Top 10 Equity Holdings

Company	Sector	Industry
Microsoft Corp.	Information Technology	Systems Software
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
UnitedHealth Group, Inc.	Health Care	Managed Health Care
JPMorgan Chase & Co.	Financials	Other Diversified Financial Services
Amazon.com, Inc.	Consumer Discretionary	Internet & Direct Marketing Retail
Airbus SE	Industrials	Aerospace & Defense
Medtronic plc	Health Care	Health Care Equipment
Alphabet, Inc., Class A	Information Technology	Internet Software & Services
Visa, Inc., Class A	Information Technology	Data Processing & Outsourced Services
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.

2018 SEMIANNUAL REPORT 11

SCHEDULE OF INVESTMENTS IVY CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 0.5%
Magna International, Inc.		457	$	23,985
Broadcasting – 2.0%
Discovery Holding Co., Class A (A)(B)		3,022		96,704
Casinos & Gaming – 0.7%
Las Vegas Sands, Inc.		517		30,685
Footwear – 1.7%
NIKE, Inc., Class B		926		78,451
Home Improvement Retail – 2.1%
Home Depot, Inc. (The)		468		96,985
Internet & Direct Marketing Retail – 3.1%
Amazon.com, Inc. (A)		74		148,222
Leisure Facilities – 1.3%
Vail Resorts, Inc.		232		63,665
Total Consumer Discretionary – 11.4%				538,697
Consumer Staples
Hypermarkets & Super Centers – 2.3%
Costco Wholesale Corp.		457		107,316
Soft Drinks – 2.3%
Coca-Cola Co. (The)		2,373		109,623
Tobacco – 1.5%
Philip Morris International, Inc.		909		74,106
Total Consumer Staples – 6.1%				291,045
Energy
Integrated Oil & Gas – 1.8%
Suncor Energy, Inc.		2,197		84,983
Oil & Gas Exploration & Production – 3.5%
ConocoPhillips		1,278		98,902
EOG Resources, Inc.		511		65,137
				164,039
Oil & Gas Refining & Marketing – 1.1%
Marathon Petroleum Corp.		660		52,780
Total Energy – 6.4%				301,802
Financials
Asset Management & Custody Banks – 1.4%
Blackstone Group L.P. (The)		1,716		65,349
Diversified Banks – 1.7%
Bank of America Corp.		2,778		81,825
Financial Exchanges & Data – 2.4%
CME Group, Inc.		672		114,381

COMMON STOCKS (Continued)	Shares		Value
Investment Banking & Brokerage – 1.8%
Morgan Stanley		1,846	$	85,964
Other Diversified Financial Services – 5.5%
Citigroup, Inc.		1,553		111,383
JPMorgan Chase & Co.		1,314		148,229
				259,612
Total Financials – 12.8%				607,131
Health Care
Health Care Equipment – 4.2%
Intuitive Surgical, Inc. (A)		134		76,744
Medtronic plc		1,237		121,654
				198,398
Managed Health Care – 3.5%
UnitedHealth Group, Inc.		630		167,499
Pharmaceuticals – 4.0%
Elanco Animal Health, Inc. (A)		240		8,373
Eli Lilly and Co.		895		96,053
Zoetis, Inc.		923		84,519
				188,945
Total Health Care – 11.7%				554,842
Industrials
Aerospace & Defense – 7.4%
Airbus SE (C)		1,008		126,594
Lockheed Martin Corp.		321		111,019
United Technologies Corp.		809		113,162
				350,775
Air Freight & Logistics – 1.3%
FedEx Corp.		243		58,608
Railroads – 1.1%
Norfolk Southern Corp.		295		53,284
Trucking – 1.9%
J.B. Hunt Transport Services, Inc.		768		91,394
Total Industrials – 11.7%				554,061
Information Technology
Application Software – 3.8%
Adobe Systems, Inc. (A)		355		95,724
Intuit, Inc.		365		83,047
				178,771
Data Processing & Outsourced Services – 7.3%
First Data Corp., Class A (A)		2,264		55,398
MasterCard, Inc., Class A		465		103,569
PayPal, Inc. (A)		798		70,070
Visa, Inc., Class A		781		117,159
				346,196
Electronic Manufacturing Services – 1.1%
TE Connectivity Ltd.		612		53,822

COMMON STOCKS (Continued)	Shares		Value
Home Entertainment Software – 3.1%
Electronic Arts, Inc. (A)		308	$	37,063
Take-Two Interactive Software, Inc. (A)		805		111,082
				148,145
Internet Software & Services – 2.5%
Alphabet, Inc., Class A (A)		100		120,346
Semiconductor Equipment – 1.2%
Applied Materials, Inc.		1,440		55,648
Semiconductors – 1.2%
Analog Devices, Inc.		591		54,616
Systems Software – 6.2%
Microsoft Corp.		2,559		292,707
Technology Hardware, Storage & Peripherals – 3.9%
Apple, Inc.		827		186,642
Total Information Technology – 30.3%				1,436,893
Materials
Commodity Chemicals – 1.6%
LyondellBasell Industries N.V., Class A		738		75,632
Diversified Chemicals – 1.7%
Dow Chemical Co. (The)		1,297		83,430
Specialty Chemicals – 1.9%
Sherwin-Williams Co. (The)		194		88,447
Total Materials – 5.2%				247,509
Telecommunication Services
Integrated Telecommunication Services – 1.4%
Verizon Communications, Inc.		1,287		68,697
Total Telecommunication Services – 1.4%				68,697
Utilities
Electric Utilities – 1.1%
NextEra Energy, Inc.		297		49,783
Total Utilities – 1.1%				49,783
TOTAL COMMON STOCKS – 98.1%			$	4,650,460
(Cost: $3,372,436)
SHORT-TERM SECURITIES	Principal
Commercial Paper (D) – 1.2%
Brown-Forman Corp., 1.930%, 10-11-18	$	5,000		4,996
Clorox Co. (The), 2.740%, 10-15-18		10,000		9,989
E.I. du Pont de Nemours and Co., 2.700%, 10-17-18		3,611		3,606

12 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (D) (Continued)
Mondelez International, Inc., 2.280%, 10-1-18	$	2,584	$	2,583
NBCUniversal Enterprise, Inc., 2.880%, 10-11-18		6,000		5,995
Northern Illinois Gas Co., 2.401%, 10-3-18		5,000		4,998
Walgreens Boots Alliance, Inc., 2.850%, 10-12-18		5,000		4,995
Wisconsin Electric Power Co., 2.250%, 10-4-18		15,000		14,994
Wisconsin Gas LLC, 2.212%, 10-3-18		4,000		3,999
				56,155
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps), 2.470%, 10-5-18 (E)		3,756		3,756

SHORT-TERM SECURITIES (Continued)	Principal		Value
Money Market Funds – 1.8%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares, 2.140%, (F)(G)	$	84,167	$	84,167
Municipal Obligations – 0.1%
MI Strategic Fund, Var Rate Demand Ltd. Oblig Rev Bonds, Ser 2007 (GTD by Air Prods and Chemicals, Inc.) (BVAL plus 23 bps), 1.650%, 10-1-18 (E)		2,770		2,770
NJ Hlth Care Fac Fin Auth, Rev Bonds, AHS Hosp Corp. Issue, Ser 2008C (GTD by JPMorgan Chase & Co.) (BVAL plus 9 bps), 1.550%, 10-7-18 (E)		2,500		2,500
				5,270

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations – 0.1%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.190%, 10-7-18 (E)	$	2,000	$	2,000
2.200%, 10-7-18 (E)		2,953		2,953
				4,953
TOTAL SHORT-TERM SECURITIES – 3.3%			$	154,301
(Cost: $154,314)
TOTAL INVESTMENT SECURITIES – 101.4%			$	4,804,761
(Cost: $3,526,750)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.4)%				(67,109	)
NET ASSETS – 100.0%			$	4,737,652

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 $82,008 are on loan.

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

(D) Rate shown is the yield to maturity at September 30, 2018.

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(F) Investment made with cash collateral received from securities on loan.

(G) Rate shown is the annualized 7-day yield at September 30, 2018.

The following forward foreign currency contracts were outstanding at September 30, 2018:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
Euro		94,032	U.S. Dollar		109,980	10-5-18	Citibank N.A.	$	778	$	—
Euro		13,597	U.S. Dollar		15,883	10-5-18	Deutsche Bank AG		92		—
								$	870	$	—

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	4,650,460	$	—	$	—
Short-Term Securities		84,167		70,134		—
Total	$	4,734,627	$	70,134	$	—
Forward Foreign Currency Contracts	$	—	$	870	$	—

During the period ended September 30, 2018, securities totaling $128,213 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

2018 SEMIANNUAL REPORT 13

SCHEDULE OF INVESTMENTS IVY CORE EQUITY FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

The following acronyms are used throughout this schedule:

BVAL = Bloomberg Valuation Benchmark Curve

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

14 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY EMERGING MARKETS EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	99.8%
Information Technology	34.6%
Financials	19.2%
Energy	12.7%
Consumer Discretionary	8.5%
Materials	8.1%
Real Estate	5.2%
Health Care	3.9%
Consumer Staples	3.5%
Industrials	2.3%
Utilities	1.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.2%

Country Weightings

Pacific Basin	69.8%
China	29.0%
India	13.9%
South Korea	13.0%
Taiwan	6.3%
Hong Kong	3.4%
Other Pacific Basin	4.2%
South America	13.0%
Brazil	12.2%
Other South America	0.8%
Europe	8.4%
Russia	7.4%
Other Europe	1.0%
North America	4.6%
Other	4.0%
South Africa	4.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.2%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Taiwan Semiconductor Manufacturing Co. Ltd.	Taiwan	Information Technology	Semiconductors
Samsung Electronics Co. Ltd.	South Korea	Information Technology	Technology Hardware, Storage & Peripherals
Alibaba Group Holding Ltd. ADR	China	Information Technology	Internet Software & Services
Reliance Industries Ltd.	India	Energy	Oil & Gas Refining & Marketing
Tencent Holdings Ltd.	China	Information Technology	Internet Software & Services
Vale S.A.	Brazil	Materials	Steel
MercadoLibre, Inc.	Brazil	Information Technology	Internet Software & Services
Mexichem S.A.B. de C.V.	Mexico	Materials	Commodity Chemicals
Baidu.com, Inc. ADR	China	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.

2018 SEMIANNUAL REPORT 15

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Argentina
Energy – 0.8%
YPF Sociedad Anonima ADR (A)		1,099	$	16,979
Total Argentina – 0.8%				16,979
Brazil
Energy – 2.2%
Petroleo Brasileiro S.A.		8,961		46,818
Financials – 3.9%
Banco Bradesco S.A.		3,315		23,461
Banco do Brasil S.A.		4,325		31,476
Itau Unibanco Holdings S.A.		2,529		27,635
				82,572
Health Care – 0.5%
Hypermarcas S.A.		1,481		10,448
Information Technology – 2.5%
MercadoLibre, Inc.		157		53,396
Materials – 3.1%
Vale S.A.		4,420		65,390
Total Brazil – 12.2%				258,624
China
Consumer Discretionary – 2.3%
Ctrip.com International Ltd. (A)		721		26,798
Geely Automobile Holdings Ltd.		10,563		21,049
				47,847
Consumer Staples – 0.3%
Kweichow Moutai Co. Ltd., A Shares		58		6,112
Financials – 7.4%
BOC Hong Kong (Holdings) Ltd., H Shares		93,452		41,543
China International Capital Corp. Ltd., H Shares (B)		16,790		31,013
Industrial and Commercial Bank of China Ltd., H Shares		59,189		43,248
Ping An Insurance (Group) Co. of China Ltd., H Shares (B)		4,363		44,308
				160,112
Health Care – 1.3%
BeiGene Ltd. ADR (A)		158		27,240
Industrials – 1.1%
ZTO Express (Cayman), Inc. ADR		1,457		24,139
Information Technology – 13.9%
Alibaba Group Holding Ltd. ADR (A)		662		109,097
Baidu.com, Inc. ADR (A)		209		47,902

COMMON STOCKS (Continued)	Shares		Value
Information Technology (Continued)
Hangzou Hikvision Digital Technology Co. Ltd., A Shares		5,955	$	24,887
Sunny Optical Technology (Group) Co. Ltd.		2,965		34,199
Tencent Holdings Ltd.		2,022		83,464
				299,549
Real Estate – 2.7%
China Overseas Land & Investment Ltd.		11,690		36,586
Logan Property Holdings Co. Ltd.		18,748		21,170
				57,756
Total China – 29.0%				622,755
Hong Kong
Consumer Discretionary – 1.8%
Galaxy Entertainment Group		6,186		39,235
Consumer Staples – 1.6%
China Resources Beer (Holdings) Co. Ltd.		8,792		35,320
Total Hong Kong – 3.4%				74,555
India
Consumer Discretionary – 1.2%
Maruti Suzuki India Ltd.		89		8,981
Page Industries Ltd.		40		18,017
				26,998
Consumer Staples – 1.6%
ITC Ltd.		8,113		33,326
Energy – 4.1%
Reliance Industries Ltd.		5,079		88,134
Financials – 3.2%
HDFC Bank Ltd.		1,484		41,080
Kotak Mahindra Bank Ltd.		1,125		17,710
RBL Bank Ltd.		1,411		9,963
				68,753
Health Care – 0.1%
Aurobindo Pharma Ltd. (A)		311		3,189
Industrials – 1.2%
Havells India Ltd.		1,198		9,821
Larsen & Toubro Ltd.		861		15,105
				24,926
Information Technology – 1.5%
Tata Consultancy Services Ltd.		1,061		31,972
Utilities – 1.0%
GAIL (India) Ltd.		4,315		22,560
Total India – 13.9%				299,858

COMMON STOCKS (Continued)	Shares		Value
Indonesia
Financials – 0.9%
PT Bank Mandiri (Persero) Tbk		21,147	$	9,543
PT Bank Rakyat Indonesia		46,992		9,934
				19,477
Total Indonesia – 0.9%				19,477
Macau
Consumer Discretionary – 1.1%
Sands China Ltd.		5,146		23,305
Total Macau – 1.1%				23,305
Mexico
Materials – 2.3%
Mexichem S.A.B. de C.V.		14,585		49,935
Total Mexico – 2.3%				49,935
Russia
Energy – 2.8%
PJSC LUKOIL ADR		783		59,980
Financials – 2.1%
Sberbank of Russia PJSC ADR		3,617		45,870
Information Technology – 2.1%
Yandex N.V., Class A (A)		1,379		45,355
Real Estate – 0.4%
Etalon Group Ltd. GDR		3,915		9,141
Total Russia – 7.4%				160,346
South Africa
Consumer Discretionary – 0.7%
Naspers Ltd., Class N		71		15,303
Energy – 1.6%
Sasol Ltd.		905		35,038
Financials – 1.7%
Capitec Bank Holdings Ltd. (B)		510		36,969
Total South Africa – 4.0%				87,310
South Korea
Consumer Discretionary – 1.4%
Hyundai Motor Co.		251		29,350
Health Care – 2.0%
Hugel, Inc. (A)		9		3,378
Samsung BioLogics Co. Ltd. (A)		82		39,689
				43,067
Information Technology – 7.1%
Samsung Electronics Co. Ltd.		2,942		123,212

16 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Information Technology (Continued)
SK hynix, Inc.		455	$	29,991
				153,203
Materials – 1.7%
POSCO		140		37,188
Utilities – 0.8%
Korea Electric Power Corp.		615		16,284
Total South Korea – 13.0%				279,092
Switzerland
Materials – 1.0%
Glencore International plc		4,936		21,338
Total Switzerland – 1.0%				21,338
Taiwan
Information Technology – 6.3%
Taiwan Semiconductor Manufacturing Co. Ltd.		15,821		136,021
Total Taiwan – 6.3%				136,021
Thailand
Energy – 1.2%
PTT Public Co. Ltd.		15,441		25,903
Total Thailand – 1.2%				25,903

COMMON STOCKS (Continued)	Shares		Value
United States
Information Technology – 1.2%
Cognizant Technology Solutions Corp., Class A		330	$	25,457
Total United States – 1.2%				25,457
Vietnam
Real Estate – 2.1%
Vinhomes JSC (A)		9,895		44,961
Total Vietnam – 2.1%				44,961
TOTAL COMMON STOCKS – 99.8%			$	2,145,916
(Cost: $1,932,136)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 0.1%
Diageo Capital plc (GTD by Diageo plc)
2.870%, 10-11-18	$	3,003		3,000
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
2.470%, 10-5-18 (D)		1,533		1,533

SHORT-TERM SECURITIES (Continued)	Principal		Value
Money Market Funds – 0.5%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares 2.140%, (E)(F)	$	11,838	$	11,838
United States Government Agency Obligations – 0.0%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate)
2.190%, 10-7-18 (D)		1,075		1,075
TOTAL SHORT-TERM SECURITIES – 0.7%			$	17,446
(Cost: $17,447)
TOTAL INVESTMENT SECURITIES – 100.5%			$	2,163,362
(Cost: $1,949,583)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.5)%				(10,063	)
NET ASSETS – 100.0%			$	2,153,299

Notes to Consolidated 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 $36,431 are on loan.

(C) Rate shown is the yield to maturity at September 30, 2018.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(E) Rate shown is the annualized 7-day yield at September 30, 2018.

(F) Investment made with cash collateral received from securities on loan.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	2,145,916	$	—	$	—
Short-Term Securities		11,838		5,608		—
Total	$	2,157,754	$	5,608	$	—

During the period ended September 30, 2018, securities totaling $1,691,804 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

2018 SEMIANNUAL REPORT 17

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

SEPTEMBER 30, 2018 (UNAUDITED)

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GDR = Global Depositary Receipts

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

TB = Treasury Bill

Market Sector Diversification
(as a % of net assets)
Information Technology	34.6%
Financials	19.2%
Energy	12.7%
Consumer Discretionary	8.5%
Materials	8.1%
Real Estate	5.2%
Health Care	3.9%
Consumer Staples	3.5%
Industrials	2.3%
Utilities	1.8%
Other+	0.2%

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

See Accompanying Notes to Financial Statements.

18 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY EUROPEAN OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	99.1%
Industrials	17.3%
Financials	14.7%
Consumer Staples	14.3%
Energy	13.9%
Health Care	13.2%
Information Technology	11.2%
Materials	5.8%
Consumer Discretionary	4.7%
Telecommunication Services	2.1%
Utilities	1.9%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Country Weightings    

Europe	99.1%
United Kingdom	30.8%
France	27.5%
Netherlands	10.5%
Switzerland	10.0%
Germany	7.6%
Ireland	4.1%
Norway	3.8%
Other Europe	3.5%
Other	1.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Tullow Oil plc	United Kingdom	Energy	Oil & Gas Exploration & Production
Royal Dutch Shell plc, Class A	Netherlands	Energy	Integrated Oil & Gas
Total S.A.	France	Energy	Integrated Oil & Gas
Ubisoft Entertainment S.A.	France	Information Technology	Home Entertainment Software
Nestle S.A., Registered Shares	Switzerland	Consumer Staples	Packaged Foods & Meats
Thales	France	Industrials	Aerospace & Defense
Unilever N.V., Certicaaten Van Aandelen	United Kingdom	Consumer Staples	Personal Products
Airbus SE	France	Industrials	Aerospace & Defense
Roche Holdings AG, Genusscheine	Switzerland	Health Care	Pharmaceuticals
AstraZeneca plc	United Kingdom	Health Care	Pharmaceuticals

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.

2018 SEMIANNUAL REPORT 19

SCHEDULE OF INVESTMENTS IVY EUROPEAN OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Denmark
Health Care – 1.6%
Novo Nordisk A/S, Class B		53	$	2,514
Total Denmark – 1.6%				2,514
France
Consumer Discretionary – 1.8%
LVMH Moet Hennessy - Louis Vuitton		8		2,767
Energy – 3.9%
Total S.A.		91		5,916
Financials – 1.9%
BNP Paribas S.A.		48		2,954
Health Care – 2.0%
Sanofi-Aventis		35		3,120
Industrials – 10.4%
Airbus SE		41		5,099
Schneider Electric S.A.		28		2,277
Thales		37		5,307
Vinci		34		3,284
				15,967
Information Technology – 5.4%
Cap Gemini S.A.		21		2,605
Ubisoft Entertainment S.A. (A)		53		5,709
				8,314
Telecommunication Services – 2.1%
Orange S.A.		199		3,171
Total France – 27.5%				42,209
Germany
Consumer Discretionary – 2.9%
adidas AG		18		4,408
Health Care – 1.5%
Fresenius SE & Co. KGaA		30		2,232
Information Technology – 3.2%
Infineon Technologies AG		91		2,063
SAP AG		22		2,695
				4,758
Total Germany – 7.6%				11,398
Ireland
Health Care – 2.1%
Medtronic plc		33		3,217
Materials – 2.0%
CRH plc		94		3,085
Total Ireland – 4.1%				6,302

COMMON STOCKS (Continued)	Shares		Value
Italy
Utilities – 1.9%
ENEL S.p.A.		564	$	2,889
Total Italy – 1.9%				2,889
Netherlands
Consumer Staples – 1.6%
Heineken N.V.		27		2,520
Energy – 4.7%
Royal Dutch Shell plc, Class A (B)		212		7,279
Financials – 1.5%
ING Groep N.V., Certicaaten Van Aandelen		179		2,321
Industrials – 1.4%
Koninklijke Philips Electronics N.V., Ordinary Shares		48		2,173
Information Technology – 1.3%
ASML Holding N.V., Ordinary Shares		11		2,018
Total Netherlands – 10.5%				16,311
Norway
Consumer Staples – 1.2%
Marine Harvest ASA		78		1,802
Financials – 2.6%
DNB ASA		184		3,876
Total Norway – 3.8%				5,678
South Africa
Materials – 1.3%
Mondi plc		70		1,928
Total South Africa – 1.3%				1,928
Switzerland
Consumer Staples – 3.6%
Nestle S.A., Registered Shares		67		5,561
Financials – 2.1%
UBS Group AG		202		3,184
Health Care – 3.0%
Roche Holdings AG, Genusscheine		19		4,530
Information Technology – 1.3%
STMicroelectronics N.V.		113		2,062
Total Switzerland – 10.0%				15,337
United Kingdom
Consumer Staples – 7.9%
British American Tobacco plc		77		3,607
Diageo plc		87		3,072

COMMON STOCKS (Continued)	Shares		Value
Consumer Staples (Continued)
Unilever N.V., Certicaaten Van Aandelen		95	$	5,291
				11,970
Energy – 5.3%
Tullow Oil plc (A)		2,352		8,072
Financials – 6.6%
3i Group plc		142		1,741
HSBC Holdings plc		370		3,230
Prudential plc		110		2,529
St. James’s Place plc		174		2,594
				10,094
Health Care – 3.0%
AstraZeneca plc		58		4,513
Industrials – 5.5%
Ashtead Group plc		100		3,181
BAE Systems plc		441		3,623
Weir Group plc (The)		65		1,495
				8,299
Materials – 2.5%
Anglo American plc		97		2,176
Rio Tinto plc		34		1,704
				3,880
Total United Kingdom – 30.8%				46,828
TOTAL COMMON STOCKS – 99.1%			$	151,394
(Cost: $121,689)
SHORT-TERM SECURITIES	Principal
Master Note – 0.9%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) 2.470%, 10-5-18 (C)	$	1,313		1,313
Money Market Funds – 4.0%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares 2.140%, (D)(E)		6,159		6,159
TOTAL SHORT-TERM SECURITIES – 4.9%			$	7,472
(Cost: $7,472)
TOTAL INVESTMENT SECURITIES – 104.0%			$	158,866
(Cost: $129,161)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (4.0)%				(6,066	)
NET ASSETS – 100.0%			$	152,800

20 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY EUROPEAN OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2018 (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 $5,865 are on loan.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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) Rate shown is the annualized 7-day yield at September 30, 2018.

(E) Investment made with cash collateral received from securities on loan.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	151,394	$	—	$	—
Short-Term Securities		6,159		1,313		—
Total	$	157,553	$	1,313	$	—

During the period ended September 30, 2018, securities totaling $176,537 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

The following acronym is used throughout this schedule:

LIBOR = London Interbank Offered Rate

Market Sector Diversification
(as a % of net assets)
Industrials	17.3%
Financials	14.7%
Consumer Staples	14.3%
Energy	13.9%
Health Care	13.2%
Information Technology	11.2%
Materials	5.8%
Consumer Discretionary	4.7%
Telecommunication Services	2.1%
Utilities	1.9%
Other+	0.9%

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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 21

PORTFOLIO HIGHLIGHTS IVY GLOBAL BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	0.8%
Bonds	97.4%
Corporate Debt Securities	56.1%
United States Government and Government Agency Obligations	27.7%
Other Government Securities	13.6%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.8%

Quality Weightings

Investment Grade	66.9%
AAA	24.7%
AA	5.7%
A	7.9%
BBB	28.6%
Non-Investment Grade	30.5%
BB	16.0%
B	11.4%
CCC	0.7%
Non-rated	2.4%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities	2.6%

Our preference is to always use ratings obtained from Standard & Poor’s, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Country Weightings

North America	50.8%
United States	43.3%
Mexico	5.0%
Other North America	2.5%
Europe	15.6%
United Kingdom	4.2%
Netherlands	4.1%
Other Europe	7.3%
South America	14.5%
Argentina	4.4%
Columbia	4.2%
Other South America	5.9%
Pacific Basin	11.4%
Bahamas/Caribbean	3.2%
Other	2.3%
Middle East	0.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.8%

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

22 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Panama
Financials – 0.8%
Banco Latinoamericano de Comercio Exterior S.A.		194	$	4,058
Total Panama – 0.8%				4,058
TOTAL COMMON STOCKS – 0.8%			$	4,058
(Cost: $4,108)
CORPORATE DEBT SECURITIES	Principal
Argentina
Energy – 1.7%
Pampa Energia S.A.
7.500%, 1-24-27 (A)	$	2,850		2,521
Pan American Energy LLC
7.875%, 5-7-21 (A)		5,000		5,089
YPF Sociedad Anonima
8.500%, 3-23-21 (A)		1,000		1,008
				8,618
Total Argentina – 1.7%				8,618
Australia
Utilities – 0.7%
Ausgrid Finance Pty Ltd.
3.850%, 5-1-23 (A)		3,400		3,378
Total Australia – 0.7%				3,378
Austria
Consumer Staples – 0.6%
ESAL GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.)
6.250%, 2-5-23 (A)		2,025		2,007
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.)
7.750%, 10-28-20 (A)		1,050		1,068
				3,075
Total Austria – 0.6%				3,075
Bermuda
Consumer Staples – 0.6%
Bacardi Ltd.
4.450%, 5-15-25 (A)		2,800		2,790
Total Bermuda – 0.6%				2,790
Brazil
Consumer Staples – 0.3%
Cosan Ltd.
5.950%, 9-20-24 (A)		1,575		1,486
Energy – 0.0%
Lancer Finance Co. (SPV) Ltd.
5.850%, 12-12-16 (B)		987		—	*

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials – 0.0%
Banco Cruzeiro do Sul S.A.
8.500%, 2-20-15 (A)(B)	$	9,000	$	45
Materials – 0.8%
Fibria Overseas Finance Ltd.
4.000%, 1-14-25		2,000		1,853
Vale Overseas Ltd.
6.250%, 8-10-26		1,850		2,027
				3,880
Utilities – 0.8%
Aegea Finance S.a.r.l.
5.750%, 10-10-24 (A)		2,300		2,145
Cemig Geracao e Transmissao S.A.
9.250%, 12-5-24 (A)		1,600		1,648
				3,793
Total Brazil – 1.9%				9,204
Canada
Financials – 1.5%
Canadian Imperial Bank of Commerce
2.100%, 10-5-20		5,000		4,884
Royal Bank of Canada:
2.500%, 1-19-21		750		738
4.650%, 1-27-26		1,500		1,533
				7,155
Total Canada – 1.5%				7,155
Cayman Islands
Industrials – 0.6%
Guanay Finance Ltd.:
6.000%, 12-15-20 (A)		2,935		2,942
6.000%, 12-15-20		210		211
				3,153
Materials – 0.9%
Braskem Finance Ltd. (GTD by Braskem S.A.)
5.750%, 4-15-21 (A)		2,000		2,054
Inversiones CMPC S.A. (GTD by Empresas CMPC S.A.)
4.375%, 5-15-23 (A)		2,600		2,599
				4,653
Telecommunication Services – 1.0%
Sable International Finance Ltd.
6.875%, 8-1-22 (A)		4,800		5,016
Total Cayman Islands – 2.5%				12,822
Chile
Financials – 0.3%
Banco Santander Chile
2.500%, 12-15-20 (A)		1,600		1,568
Industrials – 1.2%
LATAM Airlines Group S.A.
7.250%, 6-9-20 (A)		5,800		5,924

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Utilities – 0.4%
Enel Chile S.A.
4.875%, 6-12-28	$	2,080	$	2,099
Total Chile – 1.9%				9,591
China
Energy – 0.4%
Sinopec Group Overseas Development (2018) Ltd.
4.125%, 9-12-25 (A)(C)		2,000		1,982
Information Technology – 0.9%
Alibaba Group Holding Ltd.:
2.500%, 11-28-19		1,000		995
2.800%, 6-6-23		1,600		1,540
Tencent Holdings Ltd.
2.985%, 1-19-23 (A)		1,800		1,743
				4,278
Total China – 1.3%				6,260
Columbia
Financials – 0.4%
Banco de Bogota S.A.
5.375%, 2-19-23 (A)		2,000		2,053
Utilities – 2.4%
Emgesa S.A. E.S.P.
8.750%, 1-25-21 (D)	COP	10,066,000		3,557
Empresas Publicas de Medellin E.S.P.
8.375%, 2-1-21 (D)		25,238,000		8,571
				12,128
Total Columbia – 2.8%				14,181
France
Consumer Staples – 0.1%
Pernod Ricard S.A.
4.250%, 7-15-22 (A)	$	750		762
Financials – 0.6%
BNP Paribas S.A.
7.625%, 12-29-49 (A)		3,000		3,150
Total France – 0.7%				3,912
Hong Kong
Financials – 0.2%
Bangkok Bank Public Co. Ltd.
4.050%, 3-19-24 (A)		1,200		1,199
Total Hong Kong – 0.2%				1,199
India
Industrials – 0.9%
Adani Ports and Special Economic Zone Ltd.
3.500%, 7-29-20 (A)		4,800		4,734

2018 SEMIANNUAL REPORT 23

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Materials – 0.7%
Vedanta Resources plc
6.375%, 7-30-22 (A)	$	3,500	$	3,369
Total India – 1.6%				8,103
Indonesia
Utilities – 0.2%
Perusahaan Listrik Negara
5.450%, 5-21-28 (A)		1,100		1,129
Total Indonesia – 0.2%				1,129
Ireland
Financials – 0.6%
MTS International Funding Ltd.
5.000%, 5-30-23 (A)		3,150		3,056
Telecommunication Services – 0.6%
Mobile TeleSystems OJSC
5.000%, 5-30-23		3,000		2,911
Total Ireland – 1.2%				5,967
Japan
Financials – 1.1%
Mitsubishi UFJ Financial Group, Inc.
3.287%, 7-25-27		1,500		1,409
Mizuho Financial Group, Inc.
3.170%, 9-11-27		1,500		1,387
Sumitomo Mitsui Financial Group, Inc.
3.748%, 7-19-23		2,650		2,642
				5,438
Total Japan – 1.1%				5,438
Luxembourg
Consumer Discretionary – 0.8%
Altice S.A.
7.625%, 2-15-25 (A)(C)		4,500		4,078
Consumer Staples – 0.2%
Minerva Luxembourg S.A.
5.875%, 1-19-28 (A)		900		801
Financials – 0.1%
Hidrovias International Finance S.a.r.l.
5.950%, 1-24-25 (A)		430		392
Information Technology – 0.9%
Atento Luxco 1 S.A.
6.125%, 8-10-22 (A)		4,700		4,606
Total Luxembourg – 2.0%				9,877
Macau
Consumer Discretionary – 0.3%
Sands China Ltd.
5.125%, 8-8-25 (A)		1,400		1,397
Total Macau – 0.3%				1,397

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Mexico
Consumer Discretionary – 0.3%
Nemak S.A.B. de C.V.
4.750%, 1-23-25 (A)	$	1,600	$	1,560
Consumer Staples – 0.6%
Grupo Bimbo S.A.B. de C.V.
4.875%, 6-30-20 (A)		2,950		3,010
Energy – 0.1%
Petroleos Mexicanos
5.350%, 2-12-28 (A)		500		471
Financials – 1.2%
Banco Santander (Mexico) S.A.
5.950%, 10-1-28 (A)		850		863
Banco Santander S.A.
4.125%, 11-9-22 (A)		2,850		2,831
Unifin Financiera S.A.B. de C.V. SOFOM E.N.R.
7.250%, 9-27-23 (A)		2,000		1,975
				5,669
Materials – 1.4%
C5 Capital (SPV) Ltd. (3-Month U.S. LIBOR plus 428 bps)
6.614%, 12-29-49 (A)(E)		6,600		6,443
CEMEX S.A.B. de C.V.
7.750%, 4-16-26 (A)		500		547
				6,990
Total Mexico – 3.6%				17,700
Netherlands
Consumer Discretionary – 1.6%
Myriad International Holdings B.V.
6.000%, 7-18-20 (A)		1,150		1,194
VTR Finance B.V.
6.875%, 1-15-24 (A)		6,482		6,595
				7,789
Consumer Staples – 0.8%
Marfrig Holdings (Europe) B.V.:
6.875%, 6-24-19 (A)		1,500		1,519
8.000%, 6-8-23 (A)		2,350		2,358
				3,877
Energy – 0.1%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.)
8.375%, 5-23-21		656		714
Financials – 1.6%
Cooperatieve Rabobank U.A.
3.875%, 2-8-22		1,800		1,814
Enel Finance International N.V.
4.625%, 9-14-25 (A)		3,350		3,277
Sigma Finance, Inc.
4.875%, 3-27-28 (A)		1,400		1,374

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials (Continued)
Syngenta Finance N.V.
5.182%, 4-24-28 (A)	$	1,725	$	1,650
				8,115
Total Netherlands – 4.1%				20,495
Norway
Energy – 0.4%
Aker BP ASA
6.000%, 7-1-22 (A)		1,900		1,959
Total Norway – 0.4%				1,959
Peru
Financials – 0.6%
Banco de Credito del Peru
4.250%, 4-1-23 (A)		1,350		1,357
Corporacion Financiera de Desarrolla S.A.
4.750%, 2-8-22 (A)		1,350		1,378
				2,735
Materials – 0.1%
San Miguel Industrias PET S.A.
4.500%, 9-18-22 (A)		750		734
Total Peru – 0.7%				3,469
Qatar
Energy – 0.2%
Ras Laffan Liquefied Natural Gas Co. Ltd. II
5.298%, 9-30-20 (A)		1,026		1,048
Total Qatar – 0.2%				1,048
Singapore
Consumer Staples – 2.4%
Olam International Ltd.
7.500%, 8-12-20 (C)		11,650		12,180
Total Singapore – 2.4%				12,180
South Korea
Financials – 0.4%
Hyundai Capital Services, Inc.
3.017%, 8-29-22 (A)		2,100		2,021
Telecommunication Services – 0.1%
SK Telecom Co. Ltd.
3.750%, 4-16-23 (A)		500		495
Total South Korea – 0.5%				2,516
Switzerland
Financials – 0.4%
Credit Suisse Group AG
4.282%, 1-9-28 (A)		1,800		1,750
Total Switzerland – 0.4%				1,750

24 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
United Arab Emirates
Energy – 0.1%
Abu Dhabi National Energy Co.
4.375%, 4-23-25 (A)	$	600	$	597
Financials – 1.2%
ICICI Bank Ltd.:
3.500%, 3-18-20 (A)		4,275		4,241
4.000%, 3-18-26 (A)		2,000		1,860
				6,101
Total United Arab Emirates – 1.3%				6,698
United Kingdom
Consumer Staples – 0.4%
Imperial Tobacco Finance plc
3.750%, 7-21-22 (A)		2,300		2,289
Financials – 3.8%
ANZ New Zealand International Ltd.
3.450%, 1-21-28 (A)		1,300		1,232
Barclays plc:
4.337%, 1-10-28		1,800		1,702
8.250%, 12-29-49		5,600		5,649
HSBC Holdings plc:
4.583%, 6-19-29		1,900		1,902
5.625%, 12-29-49		4,300		4,279
State Bank of India:
3.622%, 4-17-19 (A)		2,300		2,300
4.875%, 4-17-24 (A)		2,300		2,326
				19,390
Total United Kingdom – 4.2%				21,679
United States
Consumer Staples – 2.0%
Anheuser-Busch Inbev S.A./N.V. (GTD by AB INBEV/BBR/COB)
2.650%, 2-1-21		2,000		1,971
Anheuser-Busch InBev Worldwide, Inc. (GTD by AB INBEV/BBR/COB)
4.000%, 4-13-28		2,850		2,808
Bunge Ltd. Finance Corp.
3.500%, 11-24-20		2,500		2,492
Maple Escrow Subsidiary, Inc.
4.597%, 5-25-28 (A)		2,800		2,813
				10,084
Energy – 0.8%
Brand Energy & Infrastructure Services, Inc.
8.500%, 7-15-25 (A)		3,610		3,711
Financials – 5.0%
Bank of America Corp.
3.593%, 7-21-28		3,175		3,025
BBVA Bancomer S.A.
6.500%, 3-10-21 (A)		1,750		1,828
Citigroup, Inc.
3.520%, 10-27-28		3,125		2,936

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials (Continued)
Cooperatieve Rabobank U.A.
3.125%, 4-26-21	$	1,750	$	1,738
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.
3.480%, 6-1-19 (A)		1,950		1,955
Goldman Sachs Group, Inc. (The)
3.814%, 4-23-29		2,600		2,478
Industrial and Commercial Bank of China Ltd.
2.957%, 11-8-22		750		721
JPMorgan Chase & Co.
3.540%, 5-1-28		2,132		2,033
TerraForm Global Operating LLC (GTD by Terra Form Global LLC)
6.125%, 3-1-26 (A)		1,300		1,248
Wells Fargo & Co.
4.300%, 7-22-27		3,000		2,987
Wells Fargo & Co. (3-Month U.S. LIBOR plus 377 bps)
6.104%, 3-29-49 (E)		4,225		4,282
				25,231
Health Care – 0.7%
Fresenius U.S. Finance II, Inc.:
4.250%, 2-1-21 (A)		300		302
4.500%, 1-15-23 (A)		2,925		2,969
				3,271
Industrials – 2.3%
Azul Investments LLP
5.875%, 10-26-24 (A)		3,150		2,725
BAE Systems Holdings, Inc.
2.850%, 12-15-20 (A)		2,225		2,195
TransDigm, Inc. (GTD by TransDigm Group, Inc.)
6.000%, 7-15-22		6,213		6,314
				11,234
Real Estate – 2.4%
Aircastle Ltd.:
4.625%, 12-15-18		2,865		2,873
4.400%, 9-25-23		2,800		2,800
American Tower Corp.
3.400%, 2-15-19		6,500		6,512
				12,185
Telecommunication Services – 2.3%
T-Mobile USA, Inc.
6.000%, 3-1-23		11,097		11,438
Total United States – 15.5%				77,154
TOTAL CORPORATE DEBT SECURITIES – 56.1%			$	280,744
(Cost: $300,031)
OTHER GOVERNMENT SECURITIES (F)
Argentina – 2.7%
Aeropuertos Argentina 2000 S.A.
6.875%, 2-1-27 (A)		1,075		1,034

OTHER GOVERNMENT SECURITIES (F) (Continued)	Principal		Value
Argentina (Continued)
Province of Buenos Aires
9.950%, 6-9-21	$	7,050	$	6,904
Republic of Argentina
6.875%, 4-22-21		6,050		5,781
				13,719
Brazil – 1.4%
Banco Nacional de Desenvolvimento Economico e Social
4.750%, 5-9-24 (A)		2,900		2,791
Federative Republic of Brazil
4.875%, 1-22-21		4,000		4,046
				6,837
Columbia – 1.4%
Republic of Colombia
4.375%, 7-12-21		7,000		7,126
Indonesia – 2.0%
Republic of Indonesia:
3.750%, 4-25-22 (A)		7,000		6,943
2.950%, 1-11-23		3,500		3,343
				10,286
Luxembourg – 0.7%
Rumo Luxembourg S.a.r.l.
7.375%, 2-9-24 (A)		3,550		3,627
Mexico – 1.4%
United Mexican States
3.625%, 3-15-22		7,000		7,013
Poland – 0.3%
Republic of Poland
5.125%, 4-21-21		1,250		1,307
Qatar – 1.1%
Qatar Government Bond
2.375%, 6-2-21 (A)		5,800		5,638
Russia – 0.8%
Russian Federation
3.500%, 1-16-19 (A)		4,200		4,200
Saudi Arabia – 0.4%
Saudi Arabia Government Bond
2.375%, 10-26-21 (A)		2,250		2,171
Turkey – 1.3%
Turkey Government Bond:
5.125%, 3-25-22		4,700		4,462
6.250%, 9-26-22		2,000		1,958
				6,420
United States – 0.1%
Republic of Argentina
5.625%, 1-26-22		750		676
TOTAL OTHER GOVERNMENT SECURITIES – 13.6%			$	69,020
(Cost: $70,736)

2018 SEMIANNUAL REPORT 25

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS	Principal		Value
United States – 0.3%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO
4.000%, 2-15-24 (A)(G)	$	28	$	—	*
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 2-year U.S. Treasury index)
3.473%, 5-25-45 (A)(E)		1,000		1,000
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates
4.500%, 10-1-35		376		390
Federal National Mortgage Association Fixed Rate Pass-Through Certificates
5.000%, 3-1-22		18		19
				1,409
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.3%			$	1,409
(Cost: $1,408)
UNITED STATES GOVERNMENT OBLIGATIONS
United States – 27.4%
U.S. Treasury Bonds
2.250%, 11-15-25		15,450		14,687

UNITED STATES GOVERNMENT OBLIGATIONS (Continued)	Principal		Value
United States (Continued)
U.S. Treasury Notes:
2.625%, 11-15-20	$	4,500	$	4,480
2.125%, 8-15-21		1,200		1,175
1.125%, 9-30-21		4,000		3,799
1.250%, 10-31-21		7,500		7,140
1.750%, 11-30-21		7,200		6,952
1.875%, 1-31-22		3,000		2,902
1.750%, 5-15-22		2,925		2,808
1.875%, 9-30-22		4,000		3,842
1.875%, 10-31-22		1,600		1,535
1.375%, 6-30-23		10,150		9,449
1.625%, 10-31-23		8,500		7,970
2.125%, 3-31-24		11,000		10,531
2.125%, 9-30-24		16,700		15,913
2.875%, 7-31-25		1,855		1,840
1.625%, 2-15-26		3,000		2,723
1.500%, 8-15-26		5,180		4,626
2.000%, 11-15-26		4,000		3,702
2.375%, 5-15-27		5,100		4,843
2.250%, 8-15-27		4,500		4,221
2.250%, 11-15-27		12,000		11,233
2.875%, 5-15-28		11,000		10,835
				137,206
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 27.4%			$	137,206
(Cost: $142,754)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (H) – 0.4%
Sonoco Products Co.
2.330%, 10-1-18	$	1,953	$	1,953
Master Note – 0.3%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
2.470%, 10-5-18 (I)		1,644		1,644
Money Market Funds – 0.6%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares
2.140%, (J)(K)		2,847		2,847
TOTAL SHORT-TERM SECURITIES – 1.3%			$	6,444
(Cost: $6,444)
TOTAL INVESTMENT SECURITIES – 99.5%			$	498,881
(Cost: $525,481)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.5%				2,656
NET ASSETS – 100.0%			$	501,537

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, 2018 the total value of these securities amounted to $186,143 or 37.1% of net assets.

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

(C) All or a portion of securities with an aggregate value of $2,786 are on loan.

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

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. Description of the reference rate and spread, if applicable, are included in the security description.

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

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

(H) Rate shown is the yield to maturity at September 30, 2018.

(I) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(J) Rate shown is the annualized 7-day yield at September 30, 2018.

(K) Investment made with cash collateral received from securities on loan.

26 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY GLOBAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (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, 2018. 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	$	4,058	$	—	$	—
Corporate Debt Securities		—		280,744		—
Other Government Securities		—		69,020		—
United States Government Agency Obligations		—		1,409		—
United States Government Obligations		—		137,206		—
Short-Term Securities		2,847		3,597		—
Total	$	6,905	$	491,976	$	—

During the period ended September 30, 2018, 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

Market Sector Diversification
(as a % of net assets)
United States Government and Government Agency Obligations	27.7%
Financials	19.8%
Other Government Securities	13.6%
Consumer Staples	8.0%
Industrials	5.0%
Utilities	4.5%
Materials	3.9%
Telecommunication Services	4.0%
Energy	3.8%
Consumer Discretionary	3.0%
Real Estate	2.4%
Information Technology	1.8%
Health Care	0.7%
Other+	1.8%

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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 27

PORTFOLIO HIGHLIGHTS IVY GLOBAL EQUITY INCOME FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	97.9%
Energy	16.1%
Financials	15.9%
Health Care	15.6%
Industrials	12.8%
Consumer Staples	11.8%
Materials	9.6%
Information Technology	7.2%
Utilities	4.0%
Consumer Discretionary	3.4%
Telecommunication Services	1.5%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.1%

Country Weightings

North America	43.5%
United States	39.2%
Canada	4.3%
Europe	42.3%
United Kingdom	11.4%
France	11.3%
Netherlands	6.4%
Switzerland	5.4%
Other Europe	7.8%
Pacific Basin	11.1%
Other	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.1%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Johnson & Johnson	United States	Health Care	Pharmaceuticals
Pfizer, Inc.	United States	Health Care	Pharmaceuticals
Royal Dutch Shell plc, Class A	Netherlands	Energy	Integrated Oil & Gas
Intel Corp.	United States	Information Technology	Semiconductors
Total S.A.	France	Energy	Integrated Oil & Gas
Lockheed Martin Corp.	United States	Industrials	Aerospace & Defense
Nestle S.A., Registered Shares	Switzerland	Consumer Staples	Packaged Foods & Meats
Chevron Corp.	United States	Energy	Integrated Oil & Gas
CNOOC Ltd.	China	Energy	Oil & Gas Exploration & Production
Dow Chemical Co. (The)	United States	Materials	Diversified 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.

28 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Canada
Energy – 2.3%
Suncor Energy, Inc.		580	$	22,451
Financials – 2.0%
Bank of Montreal		242		20,002
Total Canada – 4.3%				42,453
China
Consumer Discretionary – 0.4%
ANTA Sports Products Ltd.		765		3,669
Energy – 2.6%
CNOOC Ltd.		12,568		24,885
Total China – 3.0%				28,554
France
Consumer Discretionary – 1.1%
LVMH Moet Hennessy - Louis Vuitton		30		10,645
Energy – 3.2%
Total S.A.		479		31,084
Financials – 2.2%
BNP Paribas S.A.		345		21,101
Industrials – 3.3%
Compagnie de Saint-Gobain		186		8,017
Schneider Electric S.A.		151		12,152
Vinci		136		12,920
				33,089
Telecommunication Services – 1.5%
Orange S.A.		935		14,918
Total France – 11.3%				110,837
Hong Kong
Financials – 1.9%
BOC Hong Kong (Holdings) Ltd.		3,955		18,793
Utilities – 1.0%
Guangdong Investment Ltd.		5,765		10,235
Total Hong Kong – 2.9%				29,028
Ireland
Health Care – 1.8%
Medtronic plc		177		17,372
Materials – 0.9%
CRH plc		277		9,049
Total Ireland – 2.7%				26,421

COMMON STOCKS (Continued)	Shares		Value
Italy
Utilities – 1.7%
ENEL S.p.A.		3,283	$	16,819
Total Italy – 1.7%				16,819
Japan
Financials – 2.1%
Tokio Marine Holdings, Inc.		413		20,485
Information Technology – 0.9%
Tokyo Electron Ltd.		65		8,972
Total Japan – 3.0%				29,457
Malaysia
Financials – 1.1%
Bumiputra-Commerce Holdings Berhad		7,287		10,582
Total Malaysia – 1.1%				10,582
Netherlands
Energy – 3.8%
Royal Dutch Shell plc, Class A (A)		1,082		37,184
Financials – 1.2%
ING Groep N.V., Certicaaten Van Aandelen		867		11,259
Industrials – 1.4%
Koninklijke Philips Electronics N.V., Ordinary Shares		304		13,842
Total Netherlands – 6.4%				62,285
Norway
Consumer Staples – 1.1%
Marine Harvest ASA (A)		473		10,959
Total Norway – 1.1%				10,959
Russia
Energy – 1.2%
PJSC LUKOIL ADR		159		12,158
Total Russia – 1.2%				12,158
Singapore
Financials – 1.1%
DBS Group Holdings Ltd.		549		10,479
Total Singapore – 1.1%				10,479

COMMON STOCKS (Continued)	Shares		Value
South Africa
Materials – 1.0%
Mondi plc		360	$	9,862
Total South Africa – 1.0%				9,862
Spain
Financials – 1.1%
Banco Santander S.A.		2,178		10,963
Total Spain – 1.1%				10,963
Switzerland
Consumer Staples – 3.0%
Nestle S.A., Registered Shares		351		29,276
Health Care – 2.4%
Roche Holdings AG, Genusscheine		96		23,329
Total Switzerland – 5.4%				52,605
United Kingdom
Consumer Discretionary – 0.8%
Bellway plc		217		8,517
Consumer Staples – 4.3%
British American Tobacco plc		319		14,881
Unilever N.V., Certicaaten Van Aandelen		117		6,531
Unilever plc		386		21,222
				42,634
Financials – 1.0%
3i Group plc		800		9,819
Health Care – 1.6%
AstraZeneca plc		204		15,848
Industrials – 1.3%
BAE Systems plc		1,454		11,939
Materials – 2.4%
Anglo American plc (A)		440		9,877
Rio Tinto plc		272		13,776
				23,653
Total United Kingdom – 11.4%				112,410
United States
Consumer Discretionary – 1.1%
Home Depot, Inc. (The)		51		10,585
Consumer Staples – 3.4%
Philip Morris International, Inc.		150		12,243
Wal-Mart Stores, Inc.		217		20,369
				32,612

2018 SEMIANNUAL REPORT 29

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Energy – 3.0%
Chevron Corp.		238	$	29,060
Financials – 2.2%
JPMorgan Chase & Co.		98		11,062
KeyCorp		550		10,935
				21,997
Health Care – 9.8%
AbbVie, Inc.		181		17,133
Johnson & Johnson		288		39,728
Pfizer, Inc.		882		38,866
				95,727
Industrials – 6.8%
Eaton Corp.		221		19,146
Lockheed Martin Corp.		85		29,410
United Technologies Corp.		126		17,679
				66,235
Information Technology – 6.3%
Cypress Semiconductor Corp.		585		8,479
Intel Corp.		732		34,615
Microsoft Corp.		158		18,102
				61,196

COMMON STOCKS (Continued)	Shares		Value
Materials – 5.3%
Dow Chemical Co. (The)		373	$	23,981
Eastman Chemical Co.		174		16,660
WestRock Co.		198		10,557
				51,198
Utilities – 1.3%
Exelon Corp.		285		12,448
Total United States – 39.2%				381,058
TOTAL COMMON STOCKS – 97.9%			$	956,930
(Cost: $834,958)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 0.6%
Sonoco Products Co.
2.330%, 10-1-18	$	3,590		3,589
Wisconsin Gas LLC
2.201%, 10-4-18		2,000		1,999
				5,588
Master Note – 0.2%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
2.470%, 10-5-18 (C)		1,801		1,801

SHORT-TERM SECURITIES (Continued)	Principal		Value
Money Market Funds – 3.2%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares
2.140%, (D)(E)	$	30,830	$	30,830
United States Government Agency Obligations –0.3%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate)
2.240%, 10-7-18 (C)		2,800		2,800
TOTAL SHORT-TERM SECURITIES – 4.3%			$	41,019
(Cost: $41,021)
TOTAL INVESTMENT SECURITIES – 102.2%			$	997,949
(Cost: $875,979)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.2)%				(21,464	)
NET ASSETS – 100.0%			$	976,485

Notes to Schedule of Investments

(A) All or a portion of securities with an aggregate value of $35,758 are on loan.

(B) Rate shown is the yield to maturity at September 30, 2018.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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) Rate shown is the annualized 7-day yield at September 30, 2018.

(E) Investment made with cash collateral received from securities on loan.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	956,930	$	—	$	—
Short-Term Securities		30,830		10,189		—
Total	$	987,760	$	10,189	$	—

During the period ended September 30, 2018, securities totaling $456,503 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

30 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

TB = Treasury Bill

Market Sector Diversification
(as a % of net assets)
Energy	16.1%
Financials	15.9%
Health Care	15.6%
Industrials	12.8%
Consumer Staples	11.8%
Materials	9.6%
Information Technology	7.2%
Utilities	4.0%
Consumer Discretionary	3.4%
Telecommunication Services	1.5%
Other+	2.1%

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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 31

PORTFOLIO HIGHLIGHTS IVY GLOBAL GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation
Stocks	98.1%
Information Technology	27.2%
Consumer Discretionary	19.2%
Health Care	14.4%
Industrials	13.8%
Financials	12.1%
Energy	6.4%
Consumer Staples	5.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.9%

Country Weightings

North America	59.3%
United States	57.4%
Other North America	1.9%
Europe	26.5%
France	10.7%
United Kingdom	6.4%
Netherlands	4.3%
Other Europe	5.1%
Pacific Basin	12.3%
Japan	6.2%
Other Pacific Basin	6.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	1.9%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Microsoft Corp.	United States	Information Technology	Systems Software
Airbus SE	France	Industrials	Aerospace & Defense
Amazon.com, Inc.	United States	Consumer Discretionary	Internet & Direct Marketing Retail
MasterCard, Inc., Class A	United States	Information Technology	Data Processing & Outsourced Services
Visa, Inc., Class A	United States	Information Technology	Data Processing & Outsourced Services
UnitedHealth Group, Inc.	United States	Health Care	Managed Health Care
Home Depot, Inc. (The)	United States	Consumer Discretionary	Home Improvement Retail
CME Group, Inc.	United States	Financials	Financial Exchanges & Data
HCA Holdings, Inc.	United States	Health Care	Health Care Facilities
Adobe Systems, Inc.	United States	Information Technology	Application Software

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

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

32 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY GLOBAL GROWTH FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Canada
Energy – 1.9%
Canadian Natural Resources Ltd.		304	$	9,933
Seven Generations Energy Ltd., Class A (A)		861		10,263
				20,196
Total Canada – 1.9%				20,196
China
Financials – 1.7%
Ping An Insurance (Group) Co. of China Ltd., H Shares (B)		1,784		18,117
Information Technology – 1.4%
Alibaba Group Holding Ltd. ADR (A)		59		9,742
Baidu.com, Inc. ADR (A)		22		5,019
				14,761
Total China – 3.1%				32,878
France
Consumer Discretionary – 1.0%
LVMH Moet Hennessy - Louis Vuitton		28		10,069
Consumer Staples – 0.7%
Pernod Ricard S.A.		42		6,864
Energy – 1.9%
Total S.A. ADR		303		19,524
Industrials – 5.8%
Airbus SE		408		51,193
Schneider Electric S.A.		122		9,779
				60,972
Information Technology – 1.4%
Ubisoft Entertainment S.A. (A)		140		15,189
Total France – 10.8%				112,618
Germany
Health Care – 0.9%
Fresenius SE & Co. KGaA		129		9,450
Total Germany – 0.9%				9,450
Hong Kong
Consumer Discretionary – 0.4%
Galaxy Entertainment Group		676		4,287
Financials – 1.8%
AIA Group Ltd.		2,055		18,348
Total Hong Kong – 2.2%				22,635

COMMON STOCKS (Continued)	Shares		Value
India
Financials – 0.8%
HDFC Bank Ltd.		308	$	8,528
Total India – 0.8%				8,528
Italy
Consumer Discretionary – 2.1%
Ferrari N.V.		163		22,477
Total Italy – 2.1%				22,477
Japan
Consumer Discretionary – 3.4%
Isuzu Motors Ltd.		1,313		20,691
Start Today Co. Ltd.		500		15,123
				35,814
Industrials – 2.8%
Dakin Industries Ltd.		47		6,230
Recruit Holdings Co. Ltd.		690		23,025
				29,255
Total Japan – 6.2%				65,069
Netherlands
Consumer Staples – 1.3%
Heineken N.V.		149		13,991
Energy – 1.0%
Royal Dutch Shell plc, Class B		291		10,186
Industrials – 1.6%
Koninklijke Philips Electronics N.V., Ordinary Shares		378		17,225
Information Technology – 0.3%
ASML Holding N.V., NY Registry Shares		17		3,185
Total Netherlands – 4.2%				44,587
Sweden
Information Technology – 1.0%
Hexagon AB, Class B		178		10,442
Total Sweden – 1.0%				10,442
Switzerland
Industrials – 1.0%
Ferguson plc		128		10,857
Total Switzerland – 1.0%				10,857
United Kingdom
Consumer Discretionary – 1.0%
Compass Group plc		483		10,746
Consumer Staples – 3.0%
British American Tobacco plc		271		12,665

COMMON STOCKS (Continued)	Shares		Value
Consumer Staples (Continued)
Imperial Tobacco Group plc		541	$	18,835
				31,500
Financials – 2.4%
Prudential plc		1,094		25,083
Total United Kingdom – 6.4%				67,329
United States
Consumer Discretionary – 11.3%
Amazon.com, Inc. (A)		25		49,242
Dollar General Corp.		234		25,565
Home Depot, Inc. (The)		149		30,889
Lowe’s Co., Inc.		59		6,810
Marriott International, Inc., Class A		42		5,568
				118,074
Energy – 1.6%
Halliburton Co.		192		7,781
Schlumberger Ltd.		149		9,101
				16,882
Financials – 5.4%
CME Group, Inc.		176		30,018
Goldman Sachs Group, Inc. (The)		57		12,744
KeyCorp		723		14,378
				57,140
Health Care – 13.5%
Alexion Pharmaceuticals, Inc. (A)		65		9,080
Cigna Corp.		102		21,271
HCA Holdings, Inc.		215		29,881
Johnson & Johnson		168		23,253
Thermo Fisher Scientific, Inc.		87		21,306
UnitedHealth Group, Inc.		139		36,921
				141,712
Industrials – 2.6%
Eaton Corp.		139		12,059
Northrop Grumman Corp.		46		14,459
				26,518
Information Technology – 23.1%
Adobe Systems, Inc. (A)		106		28,736
Applied Materials, Inc.		109		4,194
Arista Networks, Inc. (A)		46		12,137
Cognizant Technology Solutions Corp., Class A		344		26,549
Facebook, Inc., Class A (A)		88		14,537
MasterCard, Inc., Class A		196		43,549
Microsoft Corp.		459		52,465
PayPal, Inc. (A)		200		17,587
Visa, Inc., Class A		282		42,368
				242,122
Total United States – 57.5%				602,448
TOTAL COMMON STOCKS – 98.1%			$	1,029,514
(Cost: $747,290)

2018 SEMIANNUAL REPORT 33

SCHEDULE OF INVESTMENTS IVY GLOBAL GROWTH FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (C) – 1.9%
Diageo Capital plc (GTD by Diageo plc)
2.870%, 10-11-18	$	3,002	$	2,999
Kroger Co. (The)
2.350%, 10-1-18		12,314		12,312
McCormick & Co., Inc.
2.371%, 10-4-18		5,000		4,998
				20,309

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.4%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps) 2.470%, 10-5-18 (D)	$	3,884	$	3,884
TOTAL SHORT-TERM SECURITIES – 2.3%			$	24,193
(Cost: $24,197)
TOTAL INVESTMENT SECURITIES – 100.4%			$	1,053,707
(Cost: $771,487)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.4)%				(3,749	)
NET ASSETS – 100.0%			$	1,049,958

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 $13,613 are on loan.

(C) Rate shown is the yield to maturity at September 30, 2018.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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, 2018. 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	$	1,029,514	$	—	$	—
Short-Term Securities		—		24,193		—
Total	$	1,029,514	$	24,193	$	—

During the period ended September 30, 2018, securities totaling $274,222 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. 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

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

34 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY GLOBAL GROWTH FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

Market Sector Diversification
(as a % of net assets)
Information Technology	27.2%
Consumer Discretionary	19.2%
Health Care	14.4%
Industrials	13.8%
Financials	12.1%
Energy	6.4%
Consumer Staples	5.0%
Other+	1.9%

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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 35

PORTFOLIO HIGHLIGHTS IVY GLOBAL INCOME ALLOCATION FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	60.2%
Financials	12.2%
Consumer Staples	8.2%
Industrials	7.9%
Information Technology	6.7%
Health Care	6.3%
Energy	6.0%
Consumer Discretionary	4.7%
Utilities	3.2%
Telecommunication Services	2.4%
Real Estate	1.4%
Materials	1.2%
Bonds	36.3%
Corporate Debt Securities	31.5%
Other Government Securities	2.4%
United States Government and Government Agency Obligations	1.3%
Loans	1.1%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.5%

Country Weightings

North America	47.9%
United States	41.7%
Canada	4.1%
Other North America	2.1%
Europe	35.3%
United Kingdom	10.5%
France	4.5%
Spain	4.1%
Luxembourg	3.7%
Other Europe	12.5%
Pacific Basin	8.7%
Australia	3.7%
Other Pacific Basin	5.0%
South America	3.2%
Bahamas/Caribbean	1.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.5%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Lockheed Martin Corp.	United States	Industrials	Aerospace & Defense
Pfizer, Inc.	United States	Health Care	Pharmaceuticals
Ares Capital Corp.	United States	Financials	Asset Management & Custody Banks
Fortress Transportation and Infrastructure Investors LLC	United States	Industrials	Trading Companies & Distributors
Vermilion Energy, Inc.	Canada	Energy	Oil & Gas Exploration & Production
Sampo plc, A Shares	Finland	Financials	Multi-Line Insurance
Dominion Energy, Inc.	United States	Utilities	Multi-Utilities
St. James’s Place plc	United Kingdom	Financials	Life & Health Insurance
Intel Corp.	United States	Information Technology	Semiconductors
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.

36 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Financials – 1.1%
Challenger Ltd.		725	$	5,870
Industrials – 1.4%
Atlas Arteria		1,550		7,820
Materials – 1.2%
Amcor Ltd.		650		6,428
Total Australia – 3.7%				20,118
Canada
Energy – 3.2%
Pembina Pipeline Corp.		222		7,546
Vermilion Energy, Inc. (A)		296		9,748
				17,294
Total Canada – 3.2%				17,294
China
Telecommunication Services – 1.3%
China Mobile Ltd.		740		7,293
Total China – 1.3%				7,293
Finland
Financials – 1.7%
Sampo plc, A Shares		185		9,580
Total Finland – 1.7%				9,580
France
Telecommunication Services – 1.1%
Orange S.A.		387		6,172
Total France – 1.1%				6,172
Germany
Financials – 1.1%
Deutsche Boerse AG		45		6,030
Total Germany – 1.1%				6,030
Ireland
Health Care – 1.6%
Medtronic plc		90		8,853
Total Ireland – 1.6%				8,853
Italy
Financials – 0.9%
Banca Intesa S.p.A.		1,900		4,855
Total Italy – 0.9%				4,855

COMMON STOCKS (Continued)	Shares		Value
Japan
Consumer Discretionary – 1.1%
Subaru Corp.		200	$	6,126
Total Japan – 1.1%				6,126
Netherlands
Energy – 1.6%
Royal Dutch Shell plc, Class A		260		8,929
Total Netherlands – 1.6%				8,929
New Zealand
Consumer Discretionary – 0.9%
SKYCITY Entertainment Group Ltd.		1,881		4,999
Total New Zealand – 0.9%				4,999
Spain
Industrials – 2.6%
ACS Actividades de Construccion y Servicios S.A.		152		6,475
Ferrovial S.A.		369		7,653
				14,128
Utilities – 1.5%
Atlantica Yield plc		412		8,477
Total Spain – 4.1%				22,605
Switzerland
Consumer Staples – 1.4%
Nestle S.A., Registered Shares		95		7,920
Health Care – 1.3%
Roche Holdings AG, Genusscheine		29		7,026
Total Switzerland – 2.7%				14,946
Taiwan
Information Technology – 1.1%
Taiwan Semiconductor Manufacturing Co. Ltd.		715		6,147
Total Taiwan – 1.1%				6,147
United Kingdom
Consumer Staples – 2.6%
Imperial Tobacco Group plc		190		6,615
Unilever N.V., Certicaaten Van Aandelen		135		7,518
				14,133
Financials – 2.8%
Legal & General Group plc		1,841		6,291
St. James’s Place plc		610		9,096
				15,387
Total United Kingdom – 5.4%				29,520

COMMON STOCKS (Continued)	Shares		Value
United States
Consumer Discretionary – 2.7%
Home Depot, Inc. (The)		36	$	7,457
V.F. Corp.		80		7,476
				14,933
Consumer Staples – 4.2%
PepsiCo, Inc.		65		7,267
Philip Morris International, Inc.		110		8,950
Procter & Gamble Co. (The)		85		7,074
				23,291
Energy – 1.2%
Valero Energy Corp.		60		6,825
Financials – 2.6%
American Capital Agency Corp.		365		6,800
Arthur J. Gallagher & Co.		100		7,444
				14,244
Health Care – 3.4%
Johnson & Johnson		55		7,599
Pfizer, Inc.		245		10,797
				18,396
Industrials – 3.9%
Fortress Transportation and Infrastructure Investors LLC		561		10,203
Lockheed Martin Corp.		33		11,417
				21,620
Information Technology – 5.6%
Intel Corp.		190		8,985
Paychex, Inc.		96		7,092
QUALCOMM, Inc.		100		7,203
Texas Instruments, Inc.		70		7,511
				30,791
Real Estate – 1.4%
Uniti Group, Inc.		380		7,657
Utilities – 1.7%
Dominion Energy, Inc.		130		9,136
Total United States – 26.7%				146,893
TOTAL COMMON STOCKS – 58.2%			$	320,360
(Cost: $288,813)
INVESTMENT FUNDS
United States – 2.0%
Ares Capital Corp.		626		10,755
TOTAL INVESTMENT FUNDS – 2.0%			$	10,755
(Cost: $10,607)

2018 SEMIANNUAL REPORT 37

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

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES	Principal		Value
Brazil
Consumer Staples – 0.3%
Cosan Ltd.
5.950%, 9-20-24 (B)	$	2,000	$	1,887
Utilities – 0.3%
Aegea Finance S.a.r.l.
5.750%, 10-10-24 (B)		1,500		1,399
Total Brazil – 0.6%				3,286
Cayman Islands
Financials – 1.4%
Banco do Brasil S.A., Grand Cayman Branch
4.625%, 1-15-25 (B)		3,000		2,765
Banco Mercantil del Norte S.A.:
6.875%, 10-6-65 (B)		3,000		3,005
7.625%, 10-6-65 (B)		2,000		2,020
				7,790
Total Cayman Islands – 1.4%				7,790
Columbia
Utilities – 0.2%
Empresas Publicas de Medellin E.S.P.
8.375%, 2-1-21 (C)	COP	3,888,000		1,321
Total Columbia – 0.2%				1,321
France
Financials – 3.4%
BNP Paribas S.A.
7.625%, 12-29-49 (B)	$	5,000		5,250
Societe Generale Group
7.375%, 12-29-49 (B)		6,000		6,188
Societe Generale S.A.
8.250%, 11-29-49		7,000		7,044
				18,482
Total France – 3.4%				18,482
Ireland
Consumer Staples – 0.4%
Eurotorg LLC (Bonitron Designated Activity Co.)
8.750%, 10-30-22 (B)		2,000		1,979
Industrials – 0.1%
Russian Railways via RZD Capital Ltd.
8.300%, 4-2-19 (C)	RUB	50,000		763
Total Ireland – 0.5%				2,742

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Italy
Financials – 0.7%
UniCredit S.p.A.
5.861%, 6-19-32 (B)	$	4,000	$	3,566
Total Italy – 0.7%				3,566
Luxembourg
Consumer Discretionary – 2.0%
Altice Financing S.A.
7.500%, 5-15-26 (B)		2,612		2,547
Altice S.A.
7.625%, 2-15-25 (A)(B)		9,188		8,326
				10,873
Consumer Staples – 0.8%
Minerva Luxembourg S.A.
5.875%, 1-19-28 (B)		4,700		4,185
Financials – 0.3%
Hidrovias International Finance S.a.r.l.
5.950%, 1-24-25 (B)		1,700		1,551
Information Technology – 0.6%
Atento Luxco 1 S.A.
6.125%, 8-10-22 (B)		3,600		3,528
Total Luxembourg – 3.7%				20,137
Mexico
Energy – 0.6%
Petroleos Mexicanos
6.500%, 3-13-27		3,000		3,065
Financials – 1.1%
Credito Real S.A.B. de C.V.
9.125%, 5-29-66 (B)		3,000		2,974
Unifin Financiera S.A.B. de C.V. SOFOM E.N.R.
7.250%, 9-27-23 (B)		3,150		3,110
				6,084
Telecommunication Services – 0.4%
America Movil S.A.B. de C.V.
6.450%, 12-5-22 (C)	MXN	47,000		2,302
Total Mexico – 2.1%				11,451
Netherlands
Consumer Staples – 0.7%
MARB BondCo plc (GTD by Marfrig Global Foods S.A., Marfrig Overseas Ltd. and Marfrig Holdings (Europe) B.V.)
7.000%, 3-15-24 (B)	$	4,000		3,780

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Energy – 1.0%
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.)
8.750%, 5-23-26	$	5,000	$	5,475
Total Netherlands – 1.7%				9,255
Turkey
Financials – 0.6%
Turkiye Garanti Bankasi A.S.
6.125%, 5-24-27 (B)		4,000		3,339
Total Turkey – 0.6%				3,339
United Kingdom
Energy – 0.7%
KCA Deutag UK Finance plc
9.875%, 4-1-22 (B)		4,167		4,146
Financials – 4.4%
Barclays plc
8.250%, 12-29-49		11,085		11,182
Royal Bank of Scotland Group plc (The):
8.625%, 12-29-49		4,983		5,338
7.500%, 12-29-49		2,922		2,991
Standard Chartered plc
7.500%, 12-29-49 (B)		5,000		5,138
				24,649
Total United Kingdom – 5.1%				28,795
United States
Energy – 2.1%
Energy Transfer Partners L.P.
6.250%, 2-15-66		7,000		6,737
Plains All American Pipeline L.P.
6.125%, 11-15-65		5,000		4,869
				11,606
Financials – 3.4%
JPMorgan Chase & Co. (3-Month U.S. LIBOR plus 347 bps)
5.809%, 4-29-49 (D)		3,000		3,013
New Cotai LLC and New Cotai Capital Corp. (10.625% Cash or 10.625% PIK)
10.625%, 5-1-19 (B)(E)		13,936		13,657
TerraForm Global Operating LLC (GTD by Terra Form Global LLC)
6.125%, 3-1-26 (B)		2,500		2,400
				19,070
Health Care – 1.1%
Kinetic Concepts, Inc. and KCI USA, Inc.
12.500%, 11-1-21 (B)		225		247
Teva Pharmaceutical Finance Co. LLC (GTD by Teva Pharmaceutical Industries Ltd.)
6.150%, 2-1-36		3,000		3,008

38 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care (Continued)
Universal Hospital Services, Inc.
7.625%, 8-15-20	$	3,172	$	3,184
				6,439
Industrials – 1.5%
Azul Investments LLP
5.875%, 10-26-24 (B)		3,300		2,855
Prime Security Services Borrower LLC
9.250%, 5-15-23 (B)		4,955		5,299
				8,154
Telecommunication Services – 2.5%
Frontier Communications Corp.
11.000%, 9-15-25 (A)		10,000		7,797
Olympus Merger Sub, Inc.
8.500%, 10-15-25 (B)		6,325		5,803
				13,600
Total United States – 10.6%				58,869
Uruguay
Industrials – 0.9%
ACI Airport Sudamerica S.A.
6.875%, 11-29-32 (B)		4,763		5,025
Total Uruguay – 0.9%				5,025
TOTAL CORPORATE DEBT SECURITIES – 31.5%			$	174,058
(Cost: $176,186)

OTHER GOVERNMENT SECURITIES (F)	Principal		Value
Argentina – 1.5%
Province of Buenos Aires
7.875%, 6-15-27 (B)	$	7,000	$	5,821
Republic of Argentina
6.875%, 1-26-27		3,000		2,550
				8,371
Canada – 0.9%
City of Toronto
3.500%, 12-6-21 (C)	CAD	2,000		1,582
Province of Ontario
4.400%, 6-2-19 (C)		2,000		1,573
Regional Municipality of York 4.000%, 6-30-21 (C)		2,000		1,606
				4,761
TOTAL OTHER GOVERNMENT SECURITIES – 2.4%			$	13,132
(Cost: $16,173)
LOANS (D)
United States
Consumer Staples – 0.5%
GOBP Holdings, Inc. (ICE LIBOR plus 825 bps)
10.492%, 10-21-22	$	2,906		2,906
Industrials – 0.6%
Hampton Rubber Co. & SEI Holding Corp. (ICE LIBOR plus 800 bps)
10.242%, 3-27-22		3,333		3,050
Total United States – 1.1%				5,956
				5,956
TOTAL LOANS – 1.1%			$	5,956
(Cost: $6,183)

UNITED STATES GOVERNMENT OBLIGATIONS	Principal		Value
United States – 1.3%
U.S. Treasury Bonds:
8.000%, 11-15-21 (G)	$	4,000	$	4,608
7.250%, 8-15-22		2,000		2,315
				6,923
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 1.3%			$	6,923
(Cost: $7,127)
SHORT-TERM SECURITIES
Commercial Paper (H) – 0.7%
Kroger Co. (The)
2.350%, 10-1-18		3,946		3,945
Master Note – 0.8%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
2.470%, 10-5-18 (I)		4,661		4,661
Money Market Funds – 1.3%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares 2.140%, (J)(K)		7,193		7,193
TOTAL SHORT-TERM SECURITIES – 2.8%			$	15,799
(Cost: $15,800)
TOTAL INVESTMENT SECURITIES – 99.3%			$	546,983
(Cost: $520,889)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7%				3,684
NET ASSETS – 100.0%			$	550,667

Notes to Schedule of Investments

(A) All or a portion of securities with an aggregate value of $8,043 are on loan.

(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, 2018 the total value of these securities amounted to $111,790 or 20.3% of net assets.

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

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. Description of the reference rate and spread, if applicable, are included in the security description.

(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) All or a portion of securities with an aggregate value of $6 are held in collateralized accounts for OTC foreign forward currency contracts collateral.

2018 SEMIANNUAL REPORT 39

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

SEPTEMBER 30, 2018 (UNAUDITED)

(H) Rate shown is the yield to maturity at September 30, 2018.

(I) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(J) Rate shown is the annualized 7-day yield at September 30, 2018.

(K) Investment made with cash collateral received from securities on loan.

The following forward foreign currency contracts were outstanding at September 30, 2018:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
British Pound		9,400	U.S. Dollar		12,375	10-5-18	UBS AG	$	121	$	—
Euro		16,000	U.S. Dollar		18,706	10-5-18	UBS AG		125		—
								$	246	$	—

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	320,360	$	—	$	—
Investment Funds		10,755		—		—
Corporate Debt Securities		—		174,058		—
Other Government Securities		—		13,132		—
Loans		—		5,956		—
United States Government Obligations		—		6,923		—
Short-Term Securities		7,193		8,606		—
Total	$	338,308	$	208,675	$	—
Forward Foreign Currency Contracts	$	—	$	246	$	—

During the period ended September 30, 2018, securities totaling $129,169 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

ICE = Intercontinental Exchange

LIBOR = London Interbank Offered Rate

PIK = Payment in Kind

40 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

Market Sector Diversification

(as a % of net assets)
Financials	27.4%
Industrials	11.0%
Consumer Staples	10.9%
Energy	10.4%
Health Care	7.5%
Information Technology	7.3%
Consumer Discretionary	6.7%
Telecommunication Services	5.3%
Utilities	3.7%
Other Government Securities	2.4%
Real Estate	1.4%
Materials	1.2%
United States Government and Government Agency Obligations	1.3%
Other+	3.5%

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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 41

PORTFOLIO HIGHLIGHTS IVY GOVERNMENT MONEY MARKET FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Corporate Obligations	0.5%
Master Note	0.5%
United States Government and Government Agency Obligations	99.1%
Cash and Other Assets (Net of Liabilities)	0.4%

42 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE OBLIGATIONS	Principal		Value
Master Note
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (A)	$	765	$	765
Total Master Note – 0.5%				765
TOTAL CORPORATE OBLIGATIONS – 0.5%			$	765
(Cost: $765)
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
United States Government Agency Obligations – 75.8%
Federal National Mortgage Association,
2.010%, 10-1-18		3,154		3,154
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.190%, 10-3-18 (A)		1,175		1,175

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
United States Government Agency Obligations (Continued)
2.170%, 10-7-18 (A)	$	11,526	$	11,526
2.190%, 10-7-18 (A)		13,788		13,788
2.200%, 10-7-18 (A)		33,436		33,436
2.220%, 10-7-18 (A)		40,259		40,259
2.240%, 10-7-18 (A)		13,285		13,285
				116,623
Treasury Bills – 20.4%
U.S. Treasury Bills:
1.950%, 10-4-18		2,000		2,000
1.770%, 10-11-18		3,000		2,998
1.890%, 10-25-18		6,500		6,491
1.940%, 11-1-18		6,000		5,990
1.960%, 11-8-18		6,000		5,987
2.050%, 11-29-18		8,000		7,973
				31,439

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Treasury Notes – 2.9%
U.S. Treasury Notes (3-Month USTMMR plus 17 bps),
2.360%, 10-1-18 (A)	$	2,000	$	2,000
U.S. Treasury Notes (3-Month USTMMR plus 4.8 bps),
2.240%, 10-2-18 (A)		1,000		1,000
U.S. Treasury Notes (3-Month USTMMR plus 7 bps),
2.260%, 10-7-18 (A)		1,500		1,500
				4,500
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS – 99.1%			$	152,562
(Cost: $152,562)
TOTAL INVESTMENT SECURITIES – 99.6%			$	153,327
(Cost: $153,327)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.4%				619
NET ASSETS – 100.0%			$	153,946

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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, 2018. 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	$	—	$	765	$	—
United States Government and Government Agency Obligations		—		152,562		—
Total	$	—	$	153,327	$	—

During the period ended September 30, 2018, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

TB = Treasury Bill

USTMMR = U.S. Treasury Money Market Rate

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 43

PORTFOLIO HIGHLIGHTS IVY HIGH INCOME FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	4.6%
Consumer Discretionary	1.8%
Financials	1.1%
Energy	1.1%
Consumer Staples	0.5%
Health Care	0.1%
Industrials	0.0%
Warrants	0.0%
Bonds	92.7%
Corporate Debt Securities	70.5%
Loans	22.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.7%

Quality Weightings

Non-Investment Grade	92.7%
BB	9.1%
B	47.1%
CCC	30.2%
Below CCC	1.2%
Non-rated	5.1%
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities	7.3%

Our preference is to always use ratings obtained from Standard & Poor’s, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. 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.

44 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares			Value
Consumer Discretionary
Apparel Retail – 0.2%
True Religion Apparel, Inc. (A)(C)(D)		219		$	12,237
Broadcasting – 0.1%
Cumulus Media, Inc., Class A (A)		217			3,705
Cable & Satellite – 0.1%
Altice N.V., Class A (A)(B)(E)		650			1,754
Altice USA, Inc., Class A		271			4,910
					6,664
Casinos & Gaming – 0.0%
New Cotai Participation Corp., Class B (A)(D)(F)		—	*		1,047
Education Services – 1.4%
Laureate Education, Inc., Class A (A)		5,108			78,866
Total Consumer Discretionary – 1.8%					102,519
Consumer Staples
Agricultural Products – 0.0%
ASG Warrant Corp. (A)(C)(D)		20			—	*
Total Consumer Staples – 0.0%					—	*
Energy
Oil & Gas Equipment & Services – 0.1%
Larchmont Resources LLC (A)(C)(F)		18			5,043
Oil & Gas Exploration & Production – 0.1%
Midstates Petroleum Co., Inc. (A)		749			6,676
Sabine Oil & Gas Corp. (A)(F)		5			338
					7,014
Total Energy – 0.2%					12,057
Financials
Other Diversified Financial Services – 0.8%
J.G. Wentworth Co. (The) (A)(C)(D)(F)		4,485			43,731
Specialized Finance – 0.3%
Maritime Finance Co. Ltd. (C)(D)(F)		1,750			17,145
Total Financials – 1.1%					60,876
Health Care
Pharmaceuticals – 0.1%
Concordia International Corp. (A)(B)(E)		351			7,071
Total Health Care – 0.1%					7,071

COMMON STOCKS (Continued)	Shares		Value
Industrials
Air Freight & Logistics – 0.0%
BIS Industries Ltd. (A)(C)(D)(F)		19,683	$	1,338
Total Industrials – 0.0%				1,338
TOTAL COMMON STOCKS – 3.2%			$	183,861
(Cost: $195,508)
PREFERRED STOCKS
Consumer Staples
Agricultural Products – 0.5%
Pinnacle Agriculture Enterprises LLC (A)(D)(F)		49,044		27,367
Total Consumer Staples – 0.5%				27,367
Energy
Oil & Gas Exploration & Production – 0.9%
Targa Resources Corp., 9.500% (F)		47		50,984
Total Energy – 0.9%				50,984
Financials
Other Diversified Financial Services – 0.0%
New Cotai Participation Corp., Class A Preferred (A)(D)(F)		25		7
Total Financials – 0.0%				7
TOTAL PREFERRED STOCKS – 1.4%			$	78,358
(Cost: $74,752)
WARRANTS
Apparel Retail – 0.0%
St. John Knits International, Inc., expires 12-31-29 (D)(G)		48		113
Oil & Gas Exploration & Production – 0.0%
Sabine Oil & Gas Corp., expires 12-29-29 (F)(G)		20		150
				150
TOTAL WARRANTS – 0.0%			$	263
(Cost: $145)
CORPORATE DEBT SECURITIES	Principal
Consumer Discretionary
Advertising – 0.4%
Acosta, Inc.,
7.750%, 10-1-22 (H)	$	37,235		12,660
Outfront Media Capital LLC and Outfront Media Capital Corp.,
5.625%, 2-15-24		9,997		10,107
				22,767

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Automotive Retail – 0.6%
Allison Transmission, Inc.,
5.000%, 10-1-24 (H)	$	5,787	$	5,758
Penske Automotive Group, Inc.,
5.500%, 5-15-26		4,202		4,085
Sonic Automotive, Inc.,
5.000%, 5-15-23		24,788		23,363
				33,206
Broadcasting – 2.1%
Clear Channel International B.V.,
8.750%, 12-15-20 (H)		4,712		4,864
Clear Channel Outdoor Holdings, Inc.,
6.500%, 11-15-22		60,391		61,593
Clear Channel Worldwide Holdings, Inc., Series A,
7.625%, 3-15-20		1,380		1,384
Clear Channel Worldwide Holdings, Inc., Series B,
7.625%, 3-15-20		27,025		27,093
Sirius XM Radio, Inc.:
4.625%, 5-15-23 (H)		16,646		16,481
6.000%, 7-15-24 (H)		6,000		6,226
				117,641
Cable & Satellite – 10.6%
Altice Financing S.A.:
6.625%, 2-15-23 (H)		16,643		16,768
7.500%, 5-15-26 (H)		29,379		28,644
Altice France S.A.:
7.375%, 5-1-26 (E)(H)		69,508		69,581
8.125%, 2-1-27 (H)		48,800		50,142
Altice S.A.:
7.250%, 5-15-22 (E)(H)(I)	EUR	4,592		5,312
7.750%, 5-15-22 (E)(H)	$	91,427		88,981
6.250%, 2-15-25 (H)(I)	EUR	4,462		4,831
7.625%, 2-15-25 (E)(H)	$	27,045		24,510
Altice U.S. Finance I Corp.:
5.375%, 7-15-23 (H)		19,883		20,107
5.500%, 5-15-26 (H)		21,539		21,474
Block Communications, Inc.,
6.875%, 2-15-25 (H)		4,710		4,828
CCO Holdings LLC and CCO Holdings Capital Corp.:
5.500%, 5-1-26 (H)		8,288		8,195
5.000%, 2-1-28 (H)		27,490		25,838
CSC Holdings LLC,
5.375%, 2-1-28 (H)		30,790		29,404
DISH DBS Corp.:
6.750%, 6-1-21		12,353		12,616
5.875%, 7-15-22		13,090		12,771
5.875%, 11-15-24		11,998		10,783
7.750%, 7-1-26		17,979		17,035
Neptune Finco Corp.:
10.125%, 1-15-23 (H)		30,021		32,843
6.625%, 10-15-25 (H)		8,618		9,081
10.875%, 10-15-25 (H)		20,060		23,295
VTR Finance B.V.,
6.875%, 1-15-24 (H)		71,029		72,272
				589,311
Casinos & Gaming – 2.3%
Everi Payments, Inc.,
7.500%, 12-15-25 (H)		25,914		26,173

2018 SEMIANNUAL REPORT 45

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Casinos & Gaming (Continued)
Gateway Casinos & Entertainment Ltd.,
8.250%, 3-1-24 (H)	$	17,195	$	18,098
Golden Nugget, Inc.:
6.750%, 10-15-24 (H)		39,137		39,700
8.750%, 10-1-25 (H)		7,927		8,310
Stars Group Holdings B.V. and Stars Group (U.S.) Co-Borrower LLC,
7.000%, 7-15-26 (H)		15,488		15,979
Studio City Finance Ltd.,
8.500%, 12-1-20 (H)		2,201		2,206
Wynn Macau Ltd.:
4.875%, 10-1-24 (H)		5,405		5,088
5.500%, 10-1-27 (H)		13,880		12,995
				128,549
Education Services – 2.2%
Laureate Education, Inc.,
8.250%, 5-1-25 (H)		113,905		121,973
Hotels, Resorts & Cruise Lines – 0.3%
Boyne USA, Inc.,
7.250%, 5-1-25 (H)		15,111		15,980
Leisure Facilities – 0.2%
Cedar Fair L.P., Magnum Management Corp., Canada’s Wonderland Co. and Millennium Operations LLC,
5.375%, 4-15-27		12,760		12,409
Movies & Entertainment – 0.2%
WMG Acquisition Corp.,
5.500%, 4-15-26 (H)		11,644		11,557
Publishing – 0.6%
E.W. Scripps Co.,
5.125%, 5-15-25 (H)		2,370		2,278
MDC Partners, Inc.,
6.500%, 5-1-24 (E)(H)		30,300		26,816
				29,094
Restaurants – 0.5%
1011778 B.C. Unlimited Liability Co. and New Red Finance, Inc.,
5.000%, 10-15-25 (H)		31,413		30,078
Specialized Consumer Services – 0.3%
Nielsen Co. (Luxembourg) S.a.r.l. (The),
5.500%, 10-1-21 (H)		10,087		10,145
Nielsen Finance LLC and Nielsen Finance Co.,
5.000%, 4-15-22 (H)		5,409		5,279
				15,424
Specialty Stores – 1.2%
Arch Merger Sub, Inc.,
8.500%, 9-15-25  (E)(H)		45,080		42,319
Cumberland Farms, Inc.,
6.750%, 5-1-25 (H)		12,736		13,054

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Specialty Stores (Continued)
Party City Holdings, Inc.,
6.625%, 8-1-26 (H)	$	11,596	$	11,741
				67,114
Total Consumer Discretionary – 21.5%				1,195,103
Consumer Staples
Food Distributors – 0.6%
Performance Food Group, Inc.,
5.500%, 6-1-24 (H)		17,758		17,580
U.S. Foods, Inc.,
5.875%, 6-15-24 (H)		18,320		18,412
				35,992
Packaged Foods & Meats – 3.9%
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.),
7.750%, 10-28-20 (H)		3,300		3,354
JBS USA LLC and JBS USA Finance, Inc.:
5.875%, 7-15-24 (H)		35,747		35,211
5.750%, 6-15-25 (H)		29,000		28,239
JBS USA Lux S.A. and JBS USA Finance, Inc.,
6.750%, 2-15-28 (H)		19,445		19,323
Pilgrim’s Pride Corp.:
5.750%, 3-15-25 (H)		5,439		5,235
5.875%, 9-30-27 (H)		19,457		18,387
Post Holdings, Inc.:
5.500%, 3-1-25 (H)		6,059		6,010
5.000%, 8-15-26 (H)		8,493		8,031
5.750%, 3-1-27 (H)		37,477		36,821
Simmons Foods, Inc.:
7.750%, 1-15-24 (H)		7,744		8,015
5.750%, 11-1-24 (H)		67,921		52,045
				220,671
Total Consumer Staples – 4.5%				256,663
Energy
Oil & Gas Drilling – 1.4%
Ensco plc,
7.750%, 2-1-26		15,502		15,386
KCA Deutag UK Finance plc,
7.250%, 5-15-21 (H)		31,548		29,734
Offshore Drilling Holding S.A.,
8.375%, 9-20-20  (H)(J)		64,569		33,899
Offshore Group Investment Ltd.,
0.000%, 11-1-19  (D)(K)		20,035		—	*
				79,019
Oil & Gas Equipment & Services – 0.7%
Brand Energy & Infrastructure Services, Inc.,
8.500%, 7-15-25 (H)		20,086		20,646
McDermott Escrow 1, Inc. and McDermott Escrow 2, Inc.,
10.625%, 5-1-24 (H)		10,700		11,449

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Equipment & Services (Continued)
SESI LLC,
7.125%, 12-15-21	$	8,719	$	8,841
				40,936
Oil & Gas Exploration & Production – 3.9%
Bellatrix Exploration Ltd.,
8.500%, 5-15-20 (H)		19,416		11,892
Chesapeake Energy Corp.:
7.000%, 10-1-24		27,050		27,050
8.000%, 1-15-25 (E)		2,525		2,606
Crownrock L.P.,
5.625%, 10-15-25 (H)		46,856		45,860
Endeavor Energy Resources L.P.:
5.500%, 1-30-26 (H)		15,582		15,582
5.750%, 1-30-28 (H)		11,167		11,167
Extraction Oil & Gas, Inc.,
5.625%, 2-1-26 (H)		21,000		18,585
Laredo Petroleum, Inc.,
6.250%, 3-15-23		5,489		5,489
Parsley Energy LLC and Parsley Finance Corp.,
5.625%, 10-15-27 (H)		10,936		10,963
Sanchez Energy Corp.,
7.250%, 2-15-23  (E)(H)		3,888		3,830
Seven Generations Energy Ltd.:
6.750%, 5-1-23 (H)		33,902		34,919
5.375%, 9-30-25 (H)		15,603		15,174
Ultra Resources, Inc.,
6.875%, 4-15-22 (H)		9,499		4,512
Whiting Petroleum Corp.,
6.625%, 1-15-26		7,787		8,099
				215,728
Oil & Gas Refining & Marketing – 1.8%
Callon Petroleum Co. (GTD by Callon Petroleum Operating Co.):
6.125%, 10-1-24		8,071		8,212
6.375%, 7-1-26		2,319		2,360
Comstock Escrow Corp.,
9.750%, 8-15-26 (H)		65,736		65,591
EP Energy LLC and Everest Acquisition Finance, Inc.,
7.750%, 5-15-26 (H)		11,584		11,859
QEP Resources, Inc., 5.625%, 3-1-26		9,650		9,228
				97,250
Total Energy – 7.8%				432,933
Financials
Consumer Finance – 0.9%
CURO Group Holdings Corp.,
8.250%, 9-1-25 (H)		19,334		18,609
Quicken Loans, Inc.,
5.750%, 5-1-25 (H)		32,851		32,810
				51,419
Financial Exchanges & Data – 1.2%
Financial & Risk U.S. Holdings, Inc.:
6.250%, 5-15-26 (H)		15,454		15,444

46 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financial Exchanges & Data (Continued)
8.250%, 11-15-26 (H)	$	51,001	$	50,692
				66,136
Insurance Brokers – 1.2%
NFP Corp.,
6.875%, 7-15-25 (H)		66,616		66,616
Investment Banking & Brokerage – 0.1%
VHF Parent LLC,
6.750%, 6-15-22 (H)		5,508		5,687
Other Diversified Financial Services – 4.0%
Balboa Merger Sub, Inc.,
11.375%, 12-1-21 (H)		38,431		41,025
Icahn Enterprises L.P. and Icahn Enterprises Finance Corp.:
6.250%, 2-1-22		23,366		23,950
6.375%, 12-15-25		7,788		7,817
New Cotai LLC and New Cotai Capital Corp.
(10.625% Cash or 10.625% PIK),
10.625%, 5-1-19 (H)(L)		155,578		152,466
				225,258
Property & Casualty Insurance – 1.0%
Amwins Group, Inc.,
7.750%, 7-1-26 (H)		19,386		20,161
Hub International Ltd.,
7.000%, 5-1-26 (H)		38,701		38,752
				58,913
Specialized Finance – 1.3%
Compass Group Diversified Holdings LLC,
8.000%, 5-1-26 (H)		15,494		15,959
Hadrian Merger Sub, Inc.,
8.500%, 5-1-26 (H)		28,417		27,138
Tervita Escrow Corp.,
7.625%, 12-1-21 (H)		7,723		7,964
TMX Finance LLC and TitleMax Finance Corp.,
11.125%, 4-1-23 (H)		23,138		23,138
				74,199
Thrifts & Mortgage Finance – 0.4%
Provident Funding Associates L.P. and PFG Finance Corp.,
6.375%, 6-15-25 (H)		19,671		19,671
Total Financials – 10.1%				567,899
Health Care
Health Care Facilities – 0.9%
DaVita HealthCare Partners, Inc.,
5.125%, 7-15-24		4,274		4,124
MPH Acquisition Holdings LLC,
7.125%, 6-1-24 (H)		13,779		14,323
Surgery Center Holdings, Inc.,
8.875%, 4-15-21 (E)(H)		29,213		30,418
				48,865

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care Supplies – 0.6%
Kinetic Concepts, Inc. and KCI USA, Inc.,
12.500%, 11-1-21 (H)	$	3,974	$	4,373
Universal Hospital Services, Inc.,
7.625%, 8-15-20		31,342		31,456
				35,829
Health Care Technology – 1.1%
Verscend Holding Corp.,
9.750%, 8-15-26 (H)		60,328		62,213
Life Sciences Tools & Services – 0.9%
Avantor, Inc.:
6.000%, 10-1-24 (H)		13,248		13,447
9.000%, 10-1-25 (H)		35,039		36,134
				49,581
Pharmaceuticals – 1.7%
Concordia Healthcare Corp.,
8.000%, 9-6-24		2,610		2,551
HLF Financing S.a.r.l. LLC and Herbalife International, Inc.,
7.250%, 8-15-26 (H)		5,413		5,501
Jaguar Holding Co. II and Pharmaceutical Product Development LLC,
6.375%, 8-1-23 (H)		5,723		5,766
Valeant Pharmaceuticals International, Inc.:
5.500%, 3-1-23 (H)		789		759
5.500%, 11-1-25 (H)		7,811		7,797
9.000%, 12-15-25 (H)		5,419		5,833
9.250%, 4-1-26 (H)		15,514		16,736
8.500%, 1-31-27 (H)		11,585		12,164
VPII Escrow Corp.,
7.500%, 7-15-21 (H)		11,421		11,635
VRX Escrow Corp.:
5.875%, 5-15-23 (H)		12,592		12,224
6.125%, 4-15-25 (H)		11,848		11,268
				92,234
Total Health Care – 5.2%				288,722
Industrials
Aerospace & Defense – 2.7%
KLX, Inc.,
5.875%, 12-1-22 (H)		51,050		52,735
TransDigm UK Holdings plc,
6.875%, 5-15-26 (H)		13,157		13,502
TransDigm, Inc. (GTD by TransDigm Group, Inc.):
6.000%, 7-15-22		16,868		17,142
6.500%, 7-15-24		39,794		40,769
6.500%, 5-15-25		7,918		8,067
6.375%, 6-15-26		16,934		17,103
				149,318
Building Products – 0.3%
Summit Materials LLC and Summit Materials Finance Corp.,
6.125%, 7-15-23		7,058		7,158

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Building Products (Continued)
WESCO Distribution, Inc. (GTD by WESCO International, Inc.),
5.375%, 6-15-24	$	8,383	$	8,299
				15,457
Diversified Support Services – 0.6%
Ahern Rentals, Inc.,
7.375%, 5-15-23 (H)		25,226		24,848
Ritchie Bros. Auctioneers, Inc.,
5.375%, 1-15-25 (H)		6,054		6,051
United Rentals (North America), Inc. (GTD by United Rentals, Inc.),
5.875%, 9-15-26		2,710		2,781
				33,680
Environmental & Facilities Services – 1.0%
GFL Environmental, Inc.:
5.625%, 5-1-22 (H)		5,520		5,340
5.375%, 3-1-23 (H)		27,117		25,490
7.000%, 6-1-26 (H)		23,211		22,428
Waste Pro USA, Inc.,
5.500%, 2-15-26 (H)		2,140		2,092
				55,350
Security & Alarm Services – 0.9%
Prime Security Services Borrower LLC,
9.250%, 5-15-23 (H)		50,236		53,727
Total Industrials – 5.5%				307,532
Information Technology
Application Software – 1.6%
Kronos Acquisition Holdings, Inc.,
9.000%, 8-15-23 (H)		92,792		87,457
Data Processing & Outsourced Services – 2.5%
Alliance Data Systems Corp.,
5.375%, 8-1-22 (H)		42,718		43,038
Italics Merger Sub, Inc.,
7.125%, 7-15-23 (H)		86,728		88,773
j2 Cloud Services LLC and j2 Global, Inc.,
6.000%, 7-15-25 (H)		7,864		8,071
				139,882
IT Consulting & Other Services – 1.0%
Cardtronics, Inc. and Cardtronics USA, Inc.,
5.500%, 5-1-25 (H)		4,761		4,547
NCR Escrow Corp.,
6.375%, 12-15-23		29,376		29,927
Pioneer Holding Corp.,
9.000%, 11-1-22 (H)		23,446		24,208
				58,682
Total Information Technology – 5.1%				286,021

2018 SEMIANNUAL REPORT 47

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Materials
Aluminum – 1.6%
Constellium N.V.:
5.750%, 5-15-24 (H)	$	21,281	$	21,148
6.625%, 3-1-25 (E)(H)		32,160		32,562
5.875%, 2-15-26 (H)		14,677		14,365
Novelis Corp. (GTD by Novelis, Inc.):
6.250%, 8-15-24 (H)		12,449		12,698
5.875%, 9-30-26 (H)		8,281		8,085
				88,858
Commodity Chemicals – 0.5%
NOVA Chemicals Corp.:
4.875%, 6-1-24 (H)		19,673		18,940
5.250%, 6-1-27 (H)		7,869		7,328
				26,268
Construction Materials – 0.7%
Hillman Group, Inc. (The),
6.375%, 7-15-22 (H)		43,731		39,358
Fertilizers & Agricultural Chemicals – 1.1%
Pinnacle Operating Corp.,
9.000%, 5-15-23 (H)		70,641		62,871
Metal & Glass Containers – 0.4%
ARD Finance S.A. (7.125% Cash or 7.875% PIK),
7.125%, 9-15-23 (L)		4,604		4,661
ARD Securities Finance S.a.r.l. (8.750% Cash or 8.750% PIK),
8.750%, 1-31-23 (H)(L)		9,568		9,568
HudBay Minerals, Inc.:
7.250%, 1-15-23 (H)		3,257		3,347
7.625%, 1-15-25 (H)		4,887		5,046
				22,622
Paper Packaging – 0.1%
Flex Acquisition Co., Inc.,
6.875%, 1-15-25 (H)		5,672		5,417
Specialty Chemicals – 0.1%
Kraton Polymers LLC and Kraton Polymers Capital Corp.,
7.000%, 4-15-25 (H)		7,999		8,219
Total Materials – 4.5%				253,613
Telecommunication Services
Alternative Carriers – 0.5%
Consolidated Communications Finance II Co.,
6.500%, 10-1-22 (E)		30,952		29,250
Integrated Telecommunication Services – 5.0%
Frontier Communications Corp.:
6.875%, 1-15-25		30,443		18,504
11.000%, 9-15-25 (E)		51,015		39,777
8.500%, 4-1-26 (H)		19,411		18,343
GCI, Inc.,
6.875%, 4-15-25		29,696		30,707

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Integrated Telecommunication Services (Continued)
Olympus Merger Sub, Inc.,
8.500%, 10-15-25 (H)	$	96,596	$	88,627
Sprint Corp.:
7.250%, 9-15-21		36,708		38,773
7.875%, 9-15-23		24,291		26,170
7.125%, 6-15-24		5,951		6,181
7.625%, 3-1-26		11,584		12,259
				279,341
Wireless Telecommunication Service – 0.8%
Digicel Group Ltd.:
8.250%, 9-30-20 (H)		6,210		4,735
7.125%, 4-1-22 (H)		7,727		5,060
Digicel Ltd.,
6.750%, 3-1-23 (E)(H)		10,247		8,543
Sable International Finance Ltd.,
6.875%, 8-1-22 (H)		19,043		19,898
Sprint Nextel Corp.,
11.500%, 11-15-21		3,331		3,906
				42,142
Total Telecommunication Services – 6.3%				350,733
TOTAL CORPORATE DEBT SECURITIES – 70.5%			$	3,939,219
(Cost: $4,011,335)
LOANS (M)
Consumer Discretionary
Advertising – 0.4%
Advantage Sales & Marketing, Inc. (ICE LIBOR plus 325 bps),
5.492%, 7-25-21 (D)		3,534		3,252
Advantage Sales & Marketing, Inc. (ICE LIBOR plus 650 bps),
8.742%, 7-25-22		25,100		21,021
				24,273
Apparel Retail – 2.1%
J. Crew Group, Inc. (ICE LIBOR plus 322 bps):
5.450%, 3-5-21		4,127		3,752
5.462%, 3-5-21		2,955		2,686
5.606%, 3-5-21		10,876		9,888
Talbots, Inc. (The) (ICE LIBOR plus 450 bps),
6.742%, 3-19-20		28,287		27,686
Talbots, Inc. (The) (ICE LIBOR plus 850 bps),
10.742%, 3-19-21		48,075		46,513
TRLG Intermediate Holdings LLC,
10.000%, 10-27-22 (C)		26,517		25,634
				116,159
Broadcasting – 0.3%
MLN U.S. Holdco LLC:
0.000%, 7-13-25 (N)		11,612		11,713
0.000%, 7-13-26 (N)		7,741		7,651
				19,364

LOANS (M) (Continued)	Principal		Value
Cable & Satellite – 0.0%
Liberty Cablevision of Puerto Rico LLC (ICE LIBOR plus 350 bps),
5.839%, 1-7-22	$	581	$	570
Education Services – 0.7%
Laureate Education, Inc. (ICE LIBOR plus 350 bps),
5.742%, 4-26-24		40,806		40,959
Housewares & Specialties – 0.4%
KIK Custom Products, Inc. (ICE LIBOR plus 400 bps),
6.242%, 5-15-23		22,374		22,256
Publishing – 0.1%
Recorded Books, Inc. (ICE LIBOR plus 450 bps),
6.886%, 8-31-25 (D)		6,961		7,013
Restaurants – 0.5%
NPC International, Inc. (ICE LIBOR plus 350 bps),
5.576%, 4-20-24		5,512		5,530
NPC International, Inc. (ICE LIBOR plus 750 bps),
9.576%, 4-18-25		22,640		22,810
				28,340
Specialized Consumer Services – 0.5%
Asurion LLC (ICE LIBOR plus 300 bps),
5.242%, 11-3-24		15,470		15,569
Asurion LLC (ICE LIBOR plus 600 bps),
8.742%, 8-4-25		11,666		11,980
				27,549
Specialty Stores – 1.0%
Jo-Ann Stores, Inc. (ICE LIBOR plus 500 bps),
7.509%, 10-16-23		20,618		20,695
Jo-Ann Stores, Inc. (ICE LIBOR plus 925 bps),
11.432%, 5-21-24		33,854		33,431
				54,126
Textiles – 0.4%
SIWF Holdings, Inc. (ICE LIBOR plus 425 bps),
6.408%, 6-15-25 (D)		23,167		23,341
Total Consumer Discretionary – 6.4%				363,950
Consumer Staples
Food Distributors – 0.3%
Dairyland USA Corp. (ICE LIBOR plus 400 bps),
6.080%, 6-22-22		14,001		14,054

48 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

LOANS (M) (Continued)	Principal		Value
Hypermarkets & Super Centers – 0.4%
GOBP Holdings, Inc. (ICE LIBOR plus 825 bps),
10.492%, 10-21-22	$	20,745	$	20,745
Total Consumer Staples – 0.7%				34,799
Energy
Coal & Consumable Fuels – 1.1%
Foresight Energy LLC (ICE LIBOR plus 725 bps),
7.992%, 3-28-22		47,969		47,880
Westmoreland Coal Co.,
0.000%, 5-22-19 (N)		1,068		1,066
Westmoreland Coal Co. (3-Month U.S. LIBOR plus 825 bps),
10.562%, 5-22-19		4,806		4,796
Westmoreland Coal Co. (ICE LIBOR plus 650 bps),
8.834%, 12-16-20 (O)		28,608		7,557
				61,299
Oil & Gas Drilling – 0.0%
KCA Deutag Alpha Ltd.,
0.000%, 5-16-20 (N)		617		599
Oil & Gas Equipment & Services – 0.3%
Larchmont Resources LLC (11.330% Cash or 11.330% PIK),
11.330%, 8-7-20 (C)(D)(L)		16,603		16,354
Oil & Gas Exploration & Production – 0.2%
California Resources Corp. (ICE LIBOR plus 475 bps),
6.962%, 12-31-22		11,612		11,781
Oil & Gas Storage & Transportation – 1.0%
Bowie Resources Holdings LLC (ICE LIBOR plus 1,075 bps),
12.992%, 2-16-21		25,494		24,219
Bowie Resources Holdings LLC (ICE LIBOR plus 575 bps),
7.992%, 8-12-20		32,786		32,185
				56,404
Total Energy – 2.6%				146,437
Financials
Asset Management & Custody Banks – 0.4%
Edelman Financial Holdings II, Inc. (ICE LIBOR plus 675 bps),
9.092%, 7-20-26 (D)		24,780		25,276
Financial Exchanges & Data – 0.2%
Hudson River Trading LLC (ICE LIBOR plus 425 bps),
6.326%, 4-3-25 (D)		13,500		13,568
Insurance Brokers – 0.2%
NFP Corp. (ICE LIBOR plus 300 bps),
5.242%, 1-8-24		10,309		10,299

LOANS (M) (Continued)	Principal		Value
Investment Banking & Brokerage – 1.1%
Jane Street Group LLC (ICE LIBOR plus 375 bps),
5.992%, 8-25-22	$	59,826	$	60,025
Property & Casualty Insurance – 0.2%
Hub International Ltd. (ICE LIBOR plus 300 bps),
5.335%, 4-25-25		9,666		9,683
Specialized Finance – 0.9%
Mayfield Agency Borrower, Inc. (ICE LIBOR plus 450 bps),
6.742%, 2-28-25 (D)		37,706		37,894
Mayfield Agency Borrower, Inc. (ICE LIBOR plus 850 bps),
10.742%, 2-28-26 (D)		12,493		12,306
				50,200
Total Financials – 3.0%				169,051
Health Care
Health Care Equipment – 0.1%
LifeScan Global Corp.,
0.000%, 6-19-25 (D)(N)		3,873		3,699
Health Care Facilities – 1.0%
Gentiva Health Services, Inc. (ICE LIBOR plus 375 bps),
6.000%, 7-2-25 (D)		45,420		45,931
Gentiva Health Services, Inc. (ICE LIBOR plus 700 bps),
9.375%, 7-2-26		11,618		11,909
				57,840
Health Care Services – 0.5%
Heartland Dental LLC,
0.000%, 4-30-25 (N)		3,785		3,785
Heartland Dental LLC (ICE LIBOR plus 375 bps),
5.992%, 4-30-25		25,168		25,168
				28,953
Health Care Technology – 1.0%
Verscend Holding Corp. (ICE LIBOR plus 450 bps),
6.742%, 8-27-25		55,170		55,607
Life Sciences Tools & Services – 0.0%
Avantor, Inc. (ICE LIBOR plus 400 bps),
6.242%, 11-22-24		1,461		1,478
Pharmaceuticals – 0.1%
Concordia International Corp. (ICE LIBOR plus 550 bps),
7.620%, 9-6-24		7,195		7,021
Total Health Care – 2.7%				154,598

LOANS (M) (Continued)	Principal		Value
Industrials
Building Products – 0.4%
Hampton Rubber Co. & SEI Holding Corp. (ICE LIBOR plus 800 bps),
10.242%, 3-27-22	$	23,667	$	21,656
Construction & Engineering – 1.2%
McDermott Technology (Americas), Inc. (ICE LIBOR plus 500 bps),
7.242%, 5-10-25		48,199		48,851
Tensar International Corp. (ICE LIBOR plus 850 bps),
10.886%, 7-10-22 (D)		18,232		16,774
				65,625
Diversified Support Services – 0.3%
USS Ultimate Holdings, Inc. (ICE LIBOR plus 375 bps),
5.992%, 8-25-24		9,288		9,369
USS Ultimate Holdings, Inc. (ICE LIBOR plus 775 bps),
9.992%, 8-25-25		7,819		7,819
				17,188
Industrial Conglomerates – 0.7%
PAE Holding Corp. (ICE LIBOR plus 550 bps),
7.886%, 10-20-22		34,907		34,951
PAE Holding Corp. (ICE LIBOR plus 950 bps),
11.886%, 10-20-23		6,112		6,112
				41,063
Industrial Machinery – 1.4%
Dynacast International LLC (ICE LIBOR plus 850 bps),
10.886%, 1-30-23 (D)		81,082		79,866
Total Industrials – 4.0%				225,398
Information Technology
Application Software – 0.2%
Applied Systems, Inc. (ICE LIBOR plus 700 bps),
9.386%, 9-19-25		12,484		12,679
Data Processing & Outsourced Services – 0.6%
Colorado Buyer, Inc. (ICE LIBOR plus 300 bps),
9.360%, 5-1-25		14,224		14,212
Great Dane Merger Sub, Inc. (ICE LIBOR plus 375 bps),
5.992%, 5-21-25 (D)		19,300		19,324
				33,536
Internet Software & Services – 0.3%
TravelCLICK, Inc. & TCH-2 Holdings LLC (ICE LIBOR plus 775 bps),
9.992%, 11-12-21 (D)		15,807		15,767
Total Information Technology – 1.1%				61,982

2018 SEMIANNUAL REPORT 49

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

LOANS (M) (Continued)	Principal		Value
Materials
Construction Materials – 0.5%
Hillman Group, Inc. (The),
0.000%, 5-31-25 (N)	$	26,273	$	25,964
Paper Packaging – 0.3%
Ranpak (Rack Merger) (ICE LIBOR plus 725 bps),
9.408%, 10-1-22 (D)		16,912		16,912
Total Materials – 0.8%				42,876
Telecommunication Services
Integrated Telecommunication Services – 0.9%
West Corp. (3-Month ICE LIBOR plus 400 bps),
6.242%, 10-10-24		50,991		50,805
Total Telecommunication Services – 0.9%				50,805
TOTAL LOANS – 22.2%			$	1,249,896
(Cost: $1,267,868)
SHORT-TERM SECURITIES
Commercial Paper (P) – 2.9%
Clorox Co. (The):
2.223%, 10-4-18		6,000		5,997
2.740%, 10-15-18		7,200		7,192
Comcast Corp.:
2.760%, 10-16-18		5,000		4,994
2.740%, 10-17-18		7,000		6,991
E.I. du Pont de Nemours and Co.,
2.850%, 10-11-18		5,000		4,996

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (P) (Continued)
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.),
2.720%, 10-18-18	$	5,000	$	4,993
International Paper Co.:
2.292%, 10-2-18		5,000		4,999
2.302%, 10-3-18		4,000		3,998
J.M. Smucker Co. (The),
2.400%, 10-1-18		4,688		4,687
NBCUniversal Enterprise, Inc.,
2.184%, 10-4-18		6,000		5,998
Northern Illinois Gas Co.,
2.401%, 10-3-18		10,000		9,997
Walgreens Boots Alliance, Inc.:
2.302%, 10-2-18		5,000		4,999
2.304%, 10-4-18		15,000		14,994
2.920%, 10-10-18		10,000		9,992
2.880%, 10-11-18		3,000		2,997
2.850%, 10-12-18		8,000		7,992
Wisconsin Electric Power Co.:
2.223%, 10-2-18		12,000		11,997
2.252%, 10-3-18		32,000		31,989
2.250%, 10-4-18		10,000		9,996
				159,798
Master Note – 0.0%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (Q)		119		119
Money Market Funds – 0.4%
Dreyfus Institutional Preferred Government Money Market Fund –Institutional Shares, 2.140%, (R)(S)		22,763		22,763

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – 0.2%
SC Pub Svc Auth, Rev Commercial Paper Notes, Ser DD (GTD by Bank of America N.A.),
2.330%, 10-17-18	$	5,000	$	5,000
Trap Rock Industries, Inc., Var Demand Bonds, Ser 2005 (GTD by Wachovia Bank N.A.) (1-Week U.S. LIBOR plus 10 bps),
2.240%, 10-7-18 (Q)		4,325		4,325
				9,325
United States Government Agency Obligations – 0.0%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate),
2.200%, 10-7-18 (Q)		450		450
TOTAL SHORT-TERM SECURITIES – 3.5%			$	192,455
(Cost: $192,489)
TOTAL INVESTMENT SECURITIES – 100.8%			$	5,644,052
(Cost: $5,742,097)
LIABILITIES, NET OF CASH AND OTHER ASSETS (T) – (0.8)%				(42,279	)
NET ASSETS – 100.0%			$	5,601,773

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

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

(E) All or a portion of securities with an aggregate value of $36,865 are on loan.

(F) Restricted securities. At September 30, 2018, the Fund owned the following restricted securities:

Security	Acquisition Date(s)		Shares			Cost		Market Value
BIS Industries Ltd. J.G. Wentworth Co. (The) Larchmont Resources LLC Maritime Finance Co. Ltd. New Cotai Participation Corp., Class B Sabine Oil & Gas Corp. New Cotai Participation Corp., Class A Preferred Pinnacle Agriculture Enterprises LLC Targa Resources Corp., 9.500% Sabine Oil & Gas Corp., expires 12-29-29		12-22-17 1-25-18 12-8-16 9-19-13 4-12-13 12-7-16 8-17-18 3-10-17 10-24-17 12-7-16		19,683 4,485 18 1,750 — 5 25 49,044 47 20	*	$	1,852 39,515 6,189 30,172 803 233 7 22,291 52,454 145	$	1,338 43,731 5,043 17,145 1,047 338 7 27,367 50,984 150
						$	153,661	$	147,150

50 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

The total value of these securities represented 2.6% of net assets at September 30, 2018.

(G) 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.

(H) 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, 2018 the total value of these securities amounted to $3,247,377 or 58.0 % of net assets.

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

(J) Step bond that pays an initial coupon rate for the first period and then a higher or lower coupon rate for the following periods. Interest rate disclosed is that which is in effect at September 30, 2018.

(K) Zero coupon bond.

(L) 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.

(M) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. Description of the reference rate and spread, if applicable, are included in the security description.

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

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

(P) Rate shown is the yield to maturity at September 30, 2018.

(Q) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(R) Investment made with cash collateral received from securities on loan.

(S) Rate shown is the annualized 7-day yield at September 30, 2018.

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

The following forward foreign currency contracts were outstanding at September 30, 2018:

	Currency to be Delivered			Currency to be Received		Settlement Date	Counterparty	Unrealized Appreciation		Unrealized Depreciation
Euro		10,129	U.S. Dollar		11,842	10-5-18	Morgan Stanley International	$	79	$	—

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	89,235	$	—	$	13,284
Consumer Staples		—		—		—	*
Energy		6,676		5,381		—
Financials		—		—		60,876
Health Care		7,071		—		—
Industrials		—		—		1,338
Total Common Stocks	$	102,982	$	5,381	$	75,498
Preferred Stocks		—		50,984		27,374
Warrants		—		150		113
Corporate Debt Securities		—		3,939,219		—	*
Loans		—		912,619		337,277
Short-Term Securities		22,763		169,692		—
Total	$	125,745	$	5,078,045	$	440,262
Forward Foreign Currency Contracts	$	—	$	79	$	—

2018 SEMIANNUAL REPORT 51

SCHEDULE OF INVESTMENTS IVY HIGH INCOME FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

During the period ended September 30, 2018, securities totaling $5,374 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

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 4-1-18	$	73,298	$	44,140		$	—	*	$	—	*	$	263,028
Net realized gain (loss)		—		—			—			—			456
Net change in unrealized appreciation (depreciation)		2,200		(16,773	)		(1	)		—			(10,640	)
Purchases		—		—			—			—			123,148
Sales		—		—			—			—			(60,654	)
Amortization/Accretion of premium/discount		—		—			—			—			258
Transfers into Level 3 during the period		—		—			114			—			46,266
Transfers out of Level 3 during the period		—		—			—			—			(24,585	)
Ending Balance 9-30-18	$	75,498	$	27,374		$	113		$	—	*	$	337,277
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-18	$	2,200	$	(16,773	)	$	(1	)	$	—		$	(2,128	)

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.

Information about Level 3 fair value measurements:

	Fair Value at 9-30-18			Valuation Technique(s)	Unobservable Input(s)	Input Value(s)
Assets
Common Stocks	$	12,237		Market comparable approach	Adjusted EBITDA multiple		9.19x
		1,047		Market comparable approach	Adjusted revenue multiple		10.34x
					Illiquidity discount		10%
		—	*	Market comparable approach	No market color		N/A
		43,731		Market comparable approach	Broker quotes		N/A
		17,145		Market comparable approach	Company financials		N/A
		1,338		Market comparable approach	Adjusted EBITDA multiple		5.36x
Preferred Stocks		27,367		Market comparable approach	Adjusted EBITDA multiple		11.10x
					Illiquidity discount		10%
		7		Cost approach	Cost of position		0
Warrants		113		Market comparable approach	No market color		N/A
Corporate Debt		—	*	Cost approach	Cost of position		0
Loans		337,277		Third-party vendor pricing service	Broker quotes		N/A

Significant increases (decreases) in the adjusted revenue multiple and adjusted EBITDA multiple inputs could result in 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

PIK = Payment in Kind

OTC = Over the Counter

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

52 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY INTERNATIONAL CORE EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	97.6%
Financials	16.2%
Industrials	14.0%
Consumer Staples	13.1%
Information Technology	12.8%
Energy	11.7%
Consumer Discretionary	8.9%
Health Care	7.7%
Telecommunication Services	6.4%
Materials	6.3%
Real Estate	0.5%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.4%

Country Weightings

Europe	59.7%
United Kingdom	15.2%
France	13.5%
Switzerland	9.3%
Germany	8.4%
Other Europe	13.3%
Pacific Basin	32.4%
Japan	15.6%
China	8.1%
Other Pacific Basin	8.7%
North America	4.7%
Canada	3.7%
Other North America	1.0%
South America	0.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.4%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Total S.A.	France	Energy	Integrated Oil & Gas
Orange S.A.	France	Telecommunication Services	Integrated Telecommunication Services
SAP AG	Germany	Information Technology	Application Software
Nestle S.A., Registered Shares	Switzerland	Consumer Staples	Packaged Foods & Meats
Roche Holdings AG, Genusscheine	Switzerland	Health Care	Pharmaceuticals
Subaru Corp.	Japan	Consumer Discretionary	Automobile Manufacturers
Airbus SE	France	Industrials	Aerospace & Defense
Isuzu Motors Ltd.	Japan	Consumer Discretionary	Automobile Manufacturers
Danone S.A.	France	Consumer Staples	Packaged Foods & Meats
Bayer AG	Germany	Health Care	Pharmaceuticals

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.

2018 SEMIANNUAL REPORT 53

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia
Energy – 0.5%
Oil Search Ltd.		5,172	$	33,758
Materials – 2.3%
BHP Billiton plc		2,178		47,444
BHP Billiton plc ADR		779		34,258
Newcrest Mining Ltd.		5,228		73,352
				155,054
Total Australia – 2.8%				188,812
Brazil
Information Technology – 0.8%
MercadoLibre, Inc.		168		57,323
Total Brazil – 0.8%				57,323
Canada
Energy – 3.7%
Canadian Natural Resources Ltd.		2,859		93,385
Seven Generations Energy Ltd., Class A (A)		6,262		74,655
Suncor Energy, Inc.		2,294		88,760
				256,800
Total Canada – 3.7%				256,800
China
Consumer Discretionary – 1.2%
Huayu Automotive Systems Co. Ltd., A Shares		25,219		82,519
Consumer Staples – 1.4%
Wuliangye Yibin Co. Ltd., A Shares		9,792		96,764
Financials – 1.3%
China Construction Bank Corp.		101,863		89,003
Industrials – 0.7%
Han’s Laser Technology Industry Group Co. Ltd., A Shares		8,203		50,547
Information Technology – 2.4%
Alibaba Group Holding Ltd. ADR (A)		473		77,849
Baidu.com, Inc. ADR (A)		392		89,644
				167,493
Telecommunication Services – 1.2%
China Unicom Ltd.		67,200		79,146
Total China – 8.2%				565,472
Denmark
Industrials – 1.1%
A.P. Moller - Maersk A/S		55		77,166
Total Denmark – 1.1%				77,166

COMMON STOCKS (Continued)	Shares		Value
France
Consumer Staples – 1.8%
Danone S.A.		1,610	$	124,689
Energy – 2.5%
Total S.A. (B)		2,724		176,580
Financials – 2.5%
Axa S.A.		3,358		90,271
Societe Generale S.A.		1,900		81,538
				171,809
Industrials – 3.2%
Airbus SE		1,075		135,048
Schneider Electric S.A.		1,146		92,230
				227,278
Information Technology – 1.0%
Criteo S.A. ADR (A)		2,923		67,052
Telecommunication Services – 2.4%
Orange S.A.		10,427		166,272
Total France – 13.4%				933,680
Germany
Consumer Discretionary – 1.3%
adidas AG		353		86,490
Health Care – 4.5%
Bayer AG		1,398		124,200
Fresenius Medical Care AG & Co. KGaA		1,024		105,330
Fresenius SE & Co. KGaA		1,073		78,755
				308,285
Information Technology – 2.2%
SAP AG		1,237		152,220
Real Estate – 0.5%
Deutsche Wohnen AG		778		37,322
Total Germany – 8.5%				584,317
Hong Kong
Financials – 2.4%
AIA Group Ltd.		10,818		96,598
Hong Kong Exchanges and Clearing Ltd.		2,522		72,153
				168,751
Total Hong Kong – 2.4%				168,751
India
Financials – 1.0%
Axis Bank Ltd.		8,618		72,910
Total India – 1.0%				72,910

COMMON STOCKS (Continued)	Shares		Value
Ireland
Materials – 1.4%
CRH plc		3,048	$	99,808
Total Ireland – 1.4%				99,808
Italy
Financials – 0.9%
UniCredit S.p.A.		4,312		64,900
Total Italy – 0.9%				64,900
Japan
Consumer Discretionary – 3.9%
Isuzu Motors Ltd.		8,529		134,443
Subaru Corp.		4,550		139,350
				273,793
Consumer Staples – 1.0%
Calbee, Inc.		2,188		72,018
Energy – 1.3%
Inpex Corp.		7,239		90,282
Financials – 2.9%
Kabushiki Kaisha Mitsubishi Tokyo Financial Group		15,924		99,382
Tokio Marine Holdings, Inc.		2,060		102,202
				201,584
Industrials – 2.6%
Komatsu Ltd.		2,959		90,017
SMC Corp.		284		91,002
				181,019
Information Technology – 2.0%
Tokyo Electron Ltd.		535		73,530
Yahoo Japan Corp.		19,051		68,577
				142,107
Telecommunication Services – 1.7%
Nippon Telegraph and Telephone Corp.		2,618		118,250
Total Japan – 15.4%				1,079,053
Luxembourg
Energy – 1.3%
Tenaris S.A.		2,888		48,381
Tenaris S.A. ADR		1,300		43,569
				91,950
Materials – 1.6%
ArcelorMittal		3,549		110,419
Total Luxembourg – 2.9%				202,369
Netherlands
Consumer Staples – 1.3%
Koninklijke Ahold Delhaize N.V.		3,996		91,639

54 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Energy – 1.8%
Royal Dutch Petroleum Co., New York Shares		511	$	34,796
Royal Dutch Shell plc, Class A		2,597		89,189
				123,985
Total Netherlands – 3.1%				215,624
Norway
Financials – 1.2%
DNB ASA		3,843		80,869
Total Norway – 1.2%				80,869
South Korea
Information Technology – 1.4%
Samsung Electronics Co. Ltd.		2,296		96,149
Total South Korea – 1.4%				96,149
Spain
Industrials – 1.2%
ACS Actividades de Construccion y Servicios S.A.		1,876		79,872
Total Spain – 1.2%				79,872
Sweden
Financials – 1.5%
Swedbank AB		4,080		101,142
Total Sweden – 1.5%				101,142
Switzerland
Consumer Staples – 2.1%
Nestle S.A., Registered Shares		1,728		144,088
Financials – 1.3%
UBS Group AG		5,564		87,882
Health Care – 3.2%
Novartis AG ADR		426		36,699
Novartis AG, Registered Shares		498		42,799
Roche Holdings AG, Genusscheine		592		143,488
				222,986
Industrials – 2.8%
Adecco S.A.		1,465		76,951
Ferguson plc		1,364		115,825
				192,776
Total Switzerland – 9.4%				647,732
Taiwan
Information Technology – 1.1%
MediaTek, Inc.		9,200		74,275
Total Taiwan – 1.1%				74,275

COMMON STOCKS (Continued)	Shares		Value
United Kingdom
Consumer Discretionary – 2.5%
Compass Group plc		3,472	$	77,198
Whitbread plc		1,605		98,665
				175,863
Consumer Staples – 5.5%
British American Tobacco plc		2,145		100,215
Imperial Tobacco Group plc		2,417		84,143
Reckitt Benckiser Group plc		1,028		94,017
Unilever plc		1,841		101,150
				379,525
Energy – 0.6%
FMC Technologies, Inc.		1,328		41,504
Financials – 1.2%
Standard Chartered plc		10,334		85,740
Industrials – 2.4%
Babcock International Group plc		7,674		72,315
BAE Systems plc		10,726		88,047
				160,362
Information Technology – 0.9%
Amdocs Ltd.		942		62,130
Materials – 1.0%
Rio Tinto plc		1,248		63,094
Rio Tinto plc ADR		207		10,562
				73,656
Telecommunication Services – 1.1%
BT Group plc		26,605		78,129
Total United Kingdom – 15.2%				1,056,909
United States
Information Technology – 1.0%
Cognizant Technology Solutions Corp., Class A		918		70,824
Total United States – 1.0%				70,824
TOTAL COMMON STOCKS – 97.6%			$	6,774,757
(Cost: $6,467,116)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 0.5%
Comcast Corp.:
2.401%, 10-2-18	$	3,000		2,999
2.352%, 10-9-18		1,144		1,143
2.760%, 10-16-18		8,244		8,234
Diageo Capital plc (GTD by Diageo plc)
2.870%, 10-11-18		3,003		3,001
E.I. du Pont de Nemours and Co.
2.244%, 10-9-18		1,667		1,666

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (C) (Continued)
Kroger Co. (The)
2.350%, 10-1-18	$	3,750	$	3,749
McCormick & Co., Inc.
2.251%, 10-2-18		5,000		4,999
Northern Illinois Gas Co.
2.200%, 10-12-18		3,000		2,997
Wisconsin Gas LLC
2.170%, 10-2-18		4,000		3,999
				32,787
Master Note – 0.0%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps)
2.470%, 10-5-18 (D)		1,294		1,294
Money Market Funds – 0.1%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares
2.140%, (E)(F)		6,869		6,869
Municipal Obligations – 0.1%
University of California (1-Month U.S. LIBOR plus 8 bps)
2.100%, 10-7-18 (D)		8,000		8,000
United States Government Agency Obligations – 0.0%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate)
2.220%, 10-7-18 (D)		1,000		1,000
TOTAL SHORT-TERM SECURITIES – 0.7%			$	49,950
(Cost: $49,956)
TOTAL INVESTMENT SECURITIES – 98.3%			$	6,824,707
(Cost: $6,517,072)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.7%				114,762
NET ASSETS – 100.0%			$	6,939,469

2018 SEMIANNUAL REPORT 55

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

SEPTEMBER 30, 2018 (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 $6,541 are on loan.

(C) Rate shown is the yield to maturity at September 30, 2018.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(E) Rate shown is the annualized 7-day yield at September 30, 2018.

(F) Investment made with cash collateral received from securities on loan.

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

The following total return swap agreements were outstanding at September 30, 2018:

Underlying Security

Counterparty

Maturity Date

Notional Amount (A)

Financing Fee(1)(2)

Value

Upfront Payments/ (Receipts)

Unrealized Depreciation

TechnipFMC plc

Goldman Sachs International

09/28/2020

EUR 13,945

1-Month EURIBOR less 30 bps

$

(65

)

$

—

$

(65

)

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

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

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	6,774,757	$	—	$	—
Short-Term Securities		6,869		43,081		—
Total	$	6,781,626	$	43,081	$	—
Liabilities
Total Return Swaps	$	—	$	65	$	—

During the period ended September 30, 2018, securities totaling $5,307,297 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. 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

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

TB = Treasury Bill

56 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

Market Sector Diversification
(as a % of net assets)
Financials	16.2%
Industrials	14.0%
Consumer Staples	13.1%
Information Technology	12.8%
Energy	11.7%
Consumer Discretionary	8.9%
Health Care	7.7%
Telecommunication Services	6.4%
Materials	6.3%
Real Estate	0.5%
Other+	2.4%

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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 57

PORTFOLIO HIGHLIGHTS IVY LARGE CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	99.1%
Information Technology	44.8%
Consumer Discretionary	18.8%
Health Care	12.8%
Industrials	11.5%
Financials	6.4%
Consumer Staples	2.6%
Real Estate	1.2%
Energy	1.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.9%

Top 10 Equity Holdings

Company	Sector	Industry
Microsoft Corp.	Information Technology	Systems Software
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
Amazon.com, Inc.	Consumer Discretionary	Internet & Direct Marketing Retail
MasterCard, Inc., Class A	Information Technology	Data Processing & Outsourced Services
Visa, Inc., Class A	Information Technology	Data Processing & Outsourced Services
CME Group, Inc.	Financials	Financial Exchanges & Data
salesforce.com, Inc.	Information Technology	Application Software
V.F. Corp.	Consumer Discretionary	Apparel, Accessories & Luxury Goods
Home Depot, Inc. (The)	Consumer Discretionary	Home Improvement Retail
NIKE, Inc., Class B	Consumer Discretionary	Footwear

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.

58 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel, Accessories & Luxury Goods – 3.1%
V.F. Corp.		1,346	$	125,812
Automobile Manufacturers – 0.4%
Ferrari N.V.		119		16,347
Cable & Satellite – 0.6%
Comcast Corp., Class A		678		24,019
Footwear – 3.0%
NIKE, Inc., Class B		1,429		121,082
Home Improvement Retail – 3.1%
Home Depot, Inc. (The)		591		122,405
Internet & Direct Marketing Retail – 7.4%
Amazon.com, Inc. (A)		121		242,615
Booking Holdings, Inc. (A)		26		52,179
				294,794
Specialty Stores – 1.2%
Ulta Beauty, Inc. (A)		165		46,634
Total Consumer Discretionary – 18.8%				751,093
Consumer Staples
Soft Drinks – 1.9%
Monster Beverage Corp. (A)		1,267		73,835
Tobacco – 0.7%
Philip Morris International, Inc.		352		28,669
Total Consumer Staples – 2.6%				102,504
Energy
Oil & Gas Equipment & Services – 1.0%
Halliburton Co.		1,033		41,855
Total Energy – 1.0%				41,855
Financials
Financial Exchanges & Data – 5.2%
CME Group, Inc.		918		156,167
S&P Global, Inc.		258		50,391
				206,558
Investment Banking & Brokerage – 1.2%
Charles Schwab Corp. (The)		984		48,369
Total Financials – 6.4%				254,927
Health Care
Health Care Equipment – 5.1%
Abiomed, Inc. (A)		81		36,205
Danaher Corp.		735		79,843
Intuitive Surgical, Inc. (A)		157		90,118
				206,166

COMMON STOCKS (Continued)	Shares		Value
Managed Health Care – 2.8%
UnitedHealth Group, Inc.		416	$	110,620
Pharmaceuticals – 4.9%
Elanco Animal Health, Inc. (A)		116		4,041
Pfizer, Inc.		1,922		84,707
Zoetis, Inc.		1,155		105,715
				194,463
Total Health Care – 12.8%				511,249
Industrials
Aerospace & Defense – 2.6%
Lockheed Martin Corp.		120		41,619
Northrop Grumman Corp.		190		60,395
				102,014
Construction Machinery & Heavy Trucks – 1.9%
Caterpillar, Inc.		493		75,193
Industrial Machinery – 2.1%
Stanley Black & Decker, Inc.		587		85,946
Railroads – 1.1%
Union Pacific Corp.		265		43,166
Research & Consulting Services – 2.5%
Verisk Analytics, Inc., Class A (A)		830		100,008
Trucking – 1.3%
J.B. Hunt Transport Services, Inc.		438		52,060
Total Industrials – 11.5%				458,387
Information Technology
Application Software – 9.6%
Adobe Systems, Inc. (A)		444		119,885
Intuit, Inc.		327		74,269
NVIDIA Corp.		120		33,694
salesforce.com, Inc. (A)		968		153,941
				381,789
Data Processing & Outsourced Services – 12.6%
FleetCor Technologies, Inc. (A)		151		34,495
MasterCard, Inc., Class A		816		181,739
PayPal, Inc. (A)		1,200		105,434
Visa, Inc., Class A		1,208		181,234
				502,902
Home Entertainment Software – 2.2%
Electronic Arts, Inc. (A)		717		86,391
Internet Software & Services – 6.0%
Alphabet, Inc., Class A (A)		90		108,154
Alphabet, Inc., Class C (A)		61		73,266
Facebook, Inc., Class A (A)		364		59,831
				241,251

COMMON STOCKS (Continued)	Shares		Value
Semiconductors – 0.7%
Microchip Technology, Inc.		348	$	27,479
Systems Software – 7.3%
Microsoft Corp.		2,535		289,871
Technology Hardware, Storage & Peripherals – 6.4%
Apple, Inc.		1,142		257,849
Total Information Technology – 44.8%				1,787,532
Real Estate
Specialized REITs – 1.2%
American Tower Corp., Class A		321		46,598
Total Real Estate – 1.2%				46,598
TOTAL COMMON STOCKS – 99.1%			$	3,954,145
(Cost: $2,223,684)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 0.6%
Diageo Capital plc (GTD by Diageo plc),
2.870%, 10-11-18	$	4,000		3,997
International Paper Co.,
2.880%, 10-11-18		7,900		7,893
J.M. Smucker Co. (The),
2.400%, 10-1-18		4,170		4,169
Northern Illinois Gas Co.,
2.200%, 10-12-18		5,000		4,995
Wisconsin Electric Power Co.,
2.252%, 10-3-18		3,000		2,999
				24,053
Master Note – 0.0%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (C)		1,018		1,018
United States Government Agency Obligations – 0.4%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.220%, 10-7-18 (C)		15,000		15,000
				15,000
TOTAL SHORT-TERM SECURITIES – 1.0%			$	40,071
(Cost: $40,076)
TOTAL INVESTMENT SECURITIES – 100.1%			$	3,994,216
(Cost: $2,263,760)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)%				(4,894	)
NET ASSETS – 100.0%			$	3,989,322

2018 SEMIANNUAL REPORT 59

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

SEPTEMBER 30, 2018 (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, 2018.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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, 2018. 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	$	3,954,145	$	—	$	—
Short-Term Securities		—		40,071		—
Total	$	3,954,145	$	40,071	$	—

During the period ended September 30, 2018, 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

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

60 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY LIMITED-TERM BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Bonds	85.0%
Corporate Debt Securities	43.4%
United States Government and Government Agency Obligations	38.4%
Municipal Bonds - Taxable	2.4%
Asset-Backed Securities	0.6%
Mortgage-Backed Securities	0.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	15.0%

Quality Weightings

Investment Grade	80.3%
AAA	3.3%
AA	33.6%
A	18.7%
BBB	24.7%
Non-Investment Grade	4.7%
BB	1.9%
B	1.1%
Non-rated	1.7%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	15.0%

Our preference is to always use ratings obtained from Standard & Poor’s, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. 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.

2018 SEMIANNUAL REPORT 61

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

SEPTEMBER 30, 2018 (UNAUDITED)

ASSET-BACKED SECURITIES	Principal		Value
American Airlines Class AA Pass Through Certificates, Series 2016-2,
3.200%, 6-15-28	$	2,766	$	2,633
SBA Tower Trust, Series 2016-1 (GTD by SBA Guarantor LLC and SBA Holdings LLC),
2.877%, 7-9-21 (A)		5,500		5,408
TOTAL ASSET-BACKED SECURITIES – 0.6%			$	8,041
(Cost: $8,278)
CORPORATE DEBT SECURITIES
Consumer Discretionary
Auto Parts & Equipment – 0.3%
Lear Corp.,
5.375%, 3-15-24		3,175		3,264
General Merchandise Stores – 0.8%
Dollar General Corp.,
3.250%, 4-15-23		2,137		2,086
Family Dollar Stores, Inc.,
5.000%, 2-1-21		8,509		8,732
				10,818
Total Consumer Discretionary – 1.1%				14,082
Consumer Staples
Brewers – 0.4%
Molson Coors Brewing Co.:
1.900%, 3-15-19		2,070		2,062
2.250%, 3-15-20		2,750		2,709
				4,771
Distillers & Vintners – 0.5%
Constellation Brands, Inc.,
2.250%, 11-6-20		7,000		6,840
Packaged Foods & Meats – 0.4%
Smithfield Foods, Inc.,
2.700%, 1-31-20 (A)		5,000		4,923
Soft Drinks – 0.1%
PepsiCo, Inc.,
3.100%, 7-17-22		2,082		2,072
Total Consumer Staples – 1.4%				18,606
Energy
Oil & Gas Equipment & Services – 1.0%
Enterprise Products Operating LLC (GTD by Enterprise Products Partners L.P.):
6.500%, 1-31-19		8,250		8,348
2.800%, 2-15-21		4,500		4,442
				12,790
Oil & Gas Exploration & Production – 1.1%
Aker BP ASA,
6.000%, 7-1-22 (A)		2,360		2,434

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Exploration & Production (Continued)
EQT Corp.,
8.125%, 6-1-19	$	11,520	$	11,894
				14,328
Oil & Gas Storage & Transportation – 2.5%
Enbridge, Inc.,
2.900%, 7-15-22		2,913		2,825
EQT Midstream Partners L.P.,
4.750%, 7-15-23		3,500		3,548
Kinder Morgan Energy Partners L.P.:
3.500%, 3-1-21		6,000		6,017
3.450%, 2-15-23		6,590		6,460
Plains All American Pipeline L.P. and PAA Finance Corp.,
3.850%, 10-15-23		8,200		8,074
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.),
4.400%, 4-1-21		5,700		5,798
				32,722
Total Energy – 4.6%				59,840
Financials
Asset Management & Custody Banks – 0.6%
Ares Capital Corp.,
3.875%, 1-15-20		7,280		7,309
Consumer Finance – 5.4%
Ally Financial, Inc.:
3.250%, 11-5-18		4,498		4,496
4.125%, 3-30-20		10,896		10,937
American Honda Finance Corp.,
7.625%, 10-1-18 (A)		5,000		5,000
Discover Financial Services,
3.950%, 11-6-24		3,150		3,079
Ford Motor Credit Co. LLC:
2.551%, 10-5-18		8,500		8,500
2.681%, 1-9-20		3,700		3,661
3.470%, 4-5-21		1,000		988
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.):
2.400%, 5-9-19		5,115		5,101
3.500%, 7-10-19		4,500		4,519
3.200%, 7-6-21		5,000		4,940
Hyundai Capital America,
2.550%, 4-3-20 (A)		3,600		3,540
Synchrony Financial,
2.600%, 1-15-19		15,770		15,757
				70,518
Diversified Banks – 6.3%
ABN AMRO Bank N.V.,
2.100%, 1-18-19 (A)		8,000		7,985
Bank of America Corp.:
3.499%, 5-17-22		3,500		3,498
4.100%, 7-24-23		2,850		2,901
Bank of New York Mellon Corp. (The),
2.300%, 9-11-19		12,750		12,688

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Banks (Continued)
BB&T Corp.,
2.050%, 5-10-21	$	5,000	$	4,843
Branch Banking and Trust Co.,
1.450%, 5-10-19		10,875		10,800
Cooperatieve Rabobank U.A.,
3.875%, 9-26-23 (A)		5,000		4,985
KeyBank N.A.,
2.300%, 9-14-22		4,000		3,822
Mitsubishi UFJ Financial Group, Inc.:
3.535%, 7-26-21		3,250		3,255
2.998%, 2-22-22		2,000		1,957
Mizuho Financial Group, Inc.,
2.273%, 9-13-21		4,400		4,235
Nordea Bank AB (3-Month U.S. LIBOR plus 94 bps),
3.250%, 8-30-23 (A)(B)		7,000		7,024
Northern Trust Corp.,
2.375%, 8-2-22		7,525		7,252
U.S. Bancorp,
5.125%, 1-15-67		6,600		6,789
				82,034
Investment Banking & Brokerage – 2.4%
Daiwa Securities Group, Inc.,
3.129%, 4-19-22 (A)		5,000		4,874
Goldman Sachs Group, Inc. (The):
2.600%, 12-27-20		5,000		4,920
2.350%, 11-15-21		5,000		4,813
3.000%, 4-26-22		3,250		3,185
Morgan Stanley:
5.750%, 1-25-21		6,000		6,304
4.875%, 11-1-22		5,250		5,438
Morgan Stanley (3-Month U.S. LIBOR plus 110 bps),
3.413%, 5-31-23 (B)		1,700		1,700
				31,234
Life & Health Insurance – 2.5%
Athene Global Funding:
2.875%, 10-23-18 (A)		15,450		15,453
2.750%, 4-20-20 (A)		1,585		1,565
New York Life Global Funding,
1.550%, 11-2-18 (A)		6,500		6,495
Principal Life Global Funding II,
2.625%, 11-19-20 (A)		9,500		9,369
				32,882
Other Diversified Financial Services – 2.9%
Citigroup, Inc.:
2.650%, 10-26-20		9,000		8,880
2.700%, 3-30-21		4,893		4,809
JPMorgan Chase & Co.:
4.350%, 8-15-21		3,820		3,916
2.972%, 1-15-23		4,087		3,980
3.000%, 2-27-30 (C)		3,390		3,129
USAA Capital Corp.,
2.450%, 8-1-20 (A)		13,865		13,672
				38,386

62 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Property & Casualty Insurance – 0.7%
ACE INA Holdings, Inc. (GTD by ACE Ltd.),
2.300%, 11-3-20	$	5,500	$	5,400
Berkshire Hathaway, Inc.,
2.100%, 8-14-19		3,820		3,800
				9,200
Regional Banks – 1.2%
PNC Bank N.A.,
2.550%, 12-9-21		4,000		3,897
PNC Funding Corp. (GTD by PNC Financial Services Group, Inc.),
6.700%, 6-10-19		3,500		3,592
Sumitomo Mitsui Banking Corp. (3-Month U.S. LIBOR plus 35 bps),
2.686%, 1-17-20 (B)		6,000		6,011
Sumitomo Mitsui Trust Bank Ltd.,
2.050%, 3-6-19 (A)		1,500		1,496
				14,996
Specialized Finance – 1.5%
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.,
3.480%, 6-1-19 (A)		5,625		5,639
International Lease Finance Corp.,
6.250%, 5-15-19		11,500		11,724
Syngenta Finance N.V.,
3.698%, 4-24-20 (A)		2,250		2,248
				19,611
Total Financials – 23.5%				306,170
Health Care
Biotechnology – 0.3%
Amgen, Inc.,
2.200%, 5-11-20		4,000		3,942
Health Care Supplies – 0.3%
Stryker Corp.,
2.625%, 3-15-21		3,025		2,979
Managed Health Care – 0.9%
Halfmoon Parent, Inc.,
3.200%, 9-17-20 (A)		11,900		11,855
Pharmaceuticals – 0.4%
AbbVie, Inc.,
2.000%, 11-6-18		2,000		1,999
Bayer U.S. Finance II LLC,
3.875%, 12-15-23 (A)		3,500		3,476
				5,475
Total Health Care – 1.9%				24,251

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Industrials
Aerospace & Defense – 2.1%
BAE Systems Holdings, Inc.,
6.375%, 6-1-19 (A)	$	10,893	$	11,130
KLX, Inc.,
5.875%, 12-1-22 (A)		13,300		13,739
Northrop Grumman Corp.,
3.250%, 8-1-23		2,000		1,964
				26,833
Airlines – 0.4%
Aviation Capital Group Corp.,
2.875%, 1-20-22 (A)		4,000		3,874
Delta Air Lines, Inc.,
3.400%, 4-19-21		1,875		1,863
				5,737
Diversified Support Services – 0.3%
United Rentals (North America), Inc. (GTD by United Rentals, Inc.),
4.625%, 7-15-23		3,500		3,526
Industrial Conglomerates – 0.4%
General Electric Capital Corp.,
5.012%, 1-1-24		5,640		5,797
Total Industrials – 3.2%				41,893
Information Technology
Communications Equipment – 0.3%
L-3 Communications Corp.,
3.950%, 5-28-24		4,280		4,218
Data Processing & Outsourced Services – 0.4%
Visa, Inc.,
2.800%, 12-14-22		5,350		5,245
Semiconductors – 0.2%
Broadcom Corp. and Broadcom Cayman Finance Ltd. (GTD by Broadcom Ltd.),
2.375%, 1-15-20		2,750		2,718
Systems Software – 1.0%
CA, Inc.,
5.375%, 12-1-19		8,297		8,481
Microsoft Corp.,
2.875%, 2-6-24		4,000		3,909
				12,390
Total Information Technology – 1.9%				24,571
Materials
Specialty Chemicals – 0.6%
Methanex Corp.,
3.250%, 12-15-19		8,632		8,598
Total Materials – 0.6%				8,598

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Real Estate
Industrial REITs – 0.3%
Air Lease Corp.,
2.500%, 3-1-21	$	3,700	$	3,614
Specialized REITs – 1.8%
American Tower Corp.:
5.900%, 11-1-21		7,200		7,654
2.250%, 1-15-22		7,500		7,158
Crown Castle International Corp.:
2.250%, 9-1-21		3,000		2,882
4.875%, 4-15-22		3,099		3,197
5.250%, 1-15-23		2,745		2,877
				23,768
Total Real Estate – 2.1%				27,382
Telecommunication Services
Integrated Telecommunication Services – 0.3%
AT&T, Inc.,
5.875%, 10-1-19		3,900		4,011
Wireless Telecommunication Service – 0.4%
Crown Castle Towers LLC,
3.222%, 5-15-22 (A)		4,830		4,725
Total Telecommunication Services – 0.7%				8,736
Utilities
Electric Utilities – 2.4%
CenterPoint Energy, Inc.,
2.500%, 9-1-22 (D)		4,000		3,822
Duke Energy Carolinas LLC,
2.500%, 3-15-23		5,000		4,805
Entergy Texas, Inc.,
2.550%, 6-1-21		7,225		7,034
MidAmerican Energy Co.,
3.700%, 9-15-23		3,000		3,014
National Rural Utilities Cooperative Finance Corp.:
1.650%, 2-8-19		3,600		3,588
2.400%, 4-25-22		4,975		4,807
Virginia Electric and Power Co., Series C,
2.750%, 3-15-23		3,940		3,815
				30,885
Total Utilities – 2.4%				30,885
TOTAL CORPORATE DEBT SECURITIES – 43.4%			$	565,014
(Cost: $571,203)

2018 SEMIANNUAL REPORT 63

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

SEPTEMBER 30, 2018 (UNAUDITED)

MORTGAGE-BACKED SECURITIES	Principal		Value
Commercial Mortgage-Backed Securities – 0.2%
Bear Stearns Deutsche Bank Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-AFR1, Class C,
5.097%, 9-15-27 (A)	$	2,500	$	2,551
TOTAL MORTGAGE-BACKED SECURITIES – 0.2%			$	2,551
(Cost: $2,727)
MUNICIPAL BONDS – TAXABLE
California – 1.6%
Alameda Corridor Trans Auth, Taxable Sr Lien Rev Bonds, Ser 1999C,
6.500%, 10-1-19		3,765		3,829
CA Various Purp GO Bonds,
7.700%, 11-1-30		10,050		10,943
CA Various Purp GO Rfdg Bonds,
7.950%, 3-1-36		5,875		6,264
				21,036
Texas – 0.8%
Dallas Independent Sch Dist, Unlimited Tax Sch Bldg Bonds, Ser 2010C,
6.450%, 2-15-35		5,650		6,058
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		4,741
				10,799
TOTAL MUNICIPAL BONDS – TAXABLE – 2.4%			$	31,835
(Cost: $32,313)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations – 0.5%
Federal Home Loan Bank,
2.000%, 11-25-31		1,000		913
U.S. Department of Transportation,
6.001%, 12-7-21 (A)		5,670		6,159
				7,072
Mortgage-Backed Obligations – 14.1%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 250 bps),
4.614%, 11-25-24 (A)(B)		5,211		5,269
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 255 bps),
4.664%, 6-25-27 (A)(B)		3,504		3,583

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (5-Year U.S. Treasury index plus 300 bps),
5.354%, 2-25-47 (A)(B)	$	6,420	$	6,692
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 1-Month U.S. LIBOR):
5.364%, 6-25-21 (A)(B)		3,115		3,138
6.114%, 9-25-22 (A)(B)		1,436		1,458
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 2-year U.S. Treasury index),
3.885%, 2-25-45 (A)(B)		8,500		8,507
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 3-year U.S. Treasury index):
5.686%, 4-25-20 (A)(B)		4,950		5,093
4.493%, 1-25-46 (A)(B)		5,958		6,084
4.119%, 2-25-46 (A)(B)		390		394
4.565%, 12-25-48 (A)(B)		14,446		14,743
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 5-year U.S. Treasury index):
4.489%, 12-25-44 (A)(B)		17,000		17,446
4.005%, 5-25-45 (A)(B)		6,500		6,538
3.615%, 8-25-46 (A)(B)		2,250		2,230
4.753%, 11-25-46 (A)(B)		8,000		8,220
3.681%, 11-25-47 (A)(B)		2,050		2,010
3.667%, 2-25-48 (A)(B)		4,000		3,993
4.012%, 2-25-50 (A)(B)		6,142		6,003
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 7-year U.S. Treasury index):
3.801%, 11-25-49 (A)(B)		3,650		3,532
3.764%, 11-25-50 (A)(B)		4,850		4,643
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates:
5.500%, 4-1-20		75		76
3.000%, 9-1-28		7,198		7,122
3.000%, 5-15-44		2,421		2,384
Federal National Mortgage Association Agency REMIC/CMO,
2.000%, 6-25-39		12,106		11,636
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
4.478%, 12-1-19		6,992		7,075
4.646%, 7-1-20		6,088		6,168
4.381%, 6-1-21		9,109		9,348
5.500%, 2-1-22		277		283
3.500%, 8-1-26		3,088		3,107
2.000%, 10-25-41		11,245		10,578
2.000%, 12-25-42		1,447		1,424
2.500%, 7-25-45		2,119		2,007
2.500%, 9-25-45		3,411		3,282

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
Government National Mortgage Association Agency REMIC/CMO,
2.000%, 3-16-42	$	5,251	$	5,007
Government National Mortgage Association Fixed Rate Pass-Through Certificates,
3.500%, 4-20-34		4,570		4,524
				183,597
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 14.6%			$	190,669
(Cost: $196,397)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 23.8%
U.S. Treasury Notes:
1.625%, 4-30-19		6,000		5,971
1.500%, 5-31-19		12,500		12,418
1.625%, 7-31-19		5,000		4,960
1.750%, 9-30-19		12,000		11,893
1.750%, 11-30-19		10,000		9,892
2.375%, 4-30-20		32,000		31,801
2.500%, 6-30-20		9,000		8,954
2.625%, 7-31-20		50,000		49,838
2.125%, 8-31-20		4,000		3,948
2.625%, 8-31-20		8,000		7,972
2.000%, 1-15-21		11,500		11,283
2.625%, 5-15-21		20,000		19,877
2.250%, 7-31-21		27,000		26,538
2.750%, 8-15-21		25,000		24,908
2.000%, 12-31-21		5,000		4,861
2.000%, 2-15-22		11,000		10,683
2.000%, 7-31-22		16,500		15,952
2.000%, 10-31-22		17,500		16,875
2.125%, 12-31-22		25,000		24,191
2.750%, 4-30-23		7,000		6,943
				309,758
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 23.8%			$	309,758
(Cost: $311,082)
SHORT-TERM SECURITIES
Commercial Paper (E) – 14.1%
AT&T, Inc.,
2.930%, 5-30-19		14,000		13,730
Energy Transfer L.P.:
2.803%, 10-3-18		34,000		33,987
2.802%, 10-4-18		20,000		19,991
3.120%, 10-15-18		4,000		3,995
General Motors Financial Co., Inc.:
2.452%, 10-3-18		3,500		3,499
2.506%, 10-9-18		8,000		7,993
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.),
2.720%, 10-18-18		8,500		8,488

64 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (E) (Continued)
J.M. Smucker Co. (The),
2.400%, 10-1-18	$	1,842	$	1,842
Kansas City Power & Light Co.:
2.321%, 10-1-18		10,000		9,998
2.421%, 10-3-18		10,000		9,997
Sherwin-Williams Co. (The):
2.452%, 10-4-18		5,000		4,998
2.500%, 10-15-18		14,000		13,985
Virginia Electric and Power Co.,
2.730%, 10-18-18		5,000		4,993
Walgreens Boots Alliance, Inc.:
2.302%, 10-2-18		5,000		4,999
2.920%, 10-10-18		5,000		4,996
2.880%, 10-11-18		8,000		7,993
2.850%, 10-12-18		25,000		24,976

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (E) (Continued)
Wisconsin Electric Power Co.,
2.250%, 10-4-18	$	2,775	$	2,774
				183,234
Master Note – 0.3%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (F)		4,010		4,010
Money Market Funds – 0.0%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares,
2.140%, (G)(H)		5		5

	Value
TOTAL SHORT-TERM SECURITIES – 14.4%	$	187,249
(Cost: $187,274)
TOTAL INVESTMENT SECURITIES – 99.4%	$	1,295,117
(Cost: $1,309,274)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.6%		8,028
NET ASSETS – 100.0%	$	1,303,145

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, 2018 the total value of these securities amounted to $269,195 or 20.7% of net assets.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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, 2018.

(D) All or a portion of securities with an aggregate value of $5 are on loan.

(E) Rate shown is the yield to maturity at September 30, 2018.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(G) Investment made with cash collateral received from securities on loan.

(H) Rate shown is the annualized 7-day yield at September 30, 2018.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	—	$	8,041	$	—
Corporate Debt Securities		—		565,014		—
Mortgage-Backed Securities		—		2,551		—
Municipal Bonds		—		31,835		—
United States Government Agency Obligations		—		190,669		—
United States Government Obligations		—		309,758		—
Short-Term Securities		5		187,244		—
Total	$	5	$	1,295,112	$	—

During the period ended September 30, 2018, 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.

2018 SEMIANNUAL REPORT 65

PORTFOLIO HIGHLIGHTS IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Ivy Managed International Opportunities Fund – Asset Allocation

Ivy International Core Equity Fund, Class N	45.2%
Ivy Emerging Markets Equity Fund, Class N	15.3%
Ivy Global Growth Fund, Class N	9.9%
Ivy Pzena International Value Fund, Class N	9.8%
Ivy European Opportunities Fund, Class N	5.0%
Ivy Global Income Allocation Fund, Class N	4.9%
Ivy Global Equity Income Fund, Class N	4.9%
Ivy IG International Small Cap Fund, Class N	4.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.2%

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.

66 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy Emerging Markets Equity Fund, Class N		1,590	$	30,393
Ivy European Opportunities Fund, Class N		300		9,908
Ivy Global Equity Income Fund, Class N		696		9,706
Ivy Global Growth Fund, Class N		378		19,700
Ivy Global Income Allocation Fund, Class N		634		9,815
Ivy IG International Small Cap Fund, Class N		781		9,618
Ivy International Core Equity Fund, Class N		4,527		89,818
Ivy Pzena International Value Fund, Class N		1,025		19,359
TOTAL AFFILIATED MUTUAL FUNDS – 99.8%			$	198,317
(Cost: $171,572)

SHORT-TERM SECURITIES	Principal		Value
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (A)	$	269	$	269
TOTAL SHORT-TERM SECURITIES – 0.1%			$	269
(Cost: $269)
TOTAL INVESTMENT SECURITIES – 99.9%			$	198,586
(Cost: $171,841)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1%				118
NET ASSETS – 100.0%			$	198,704

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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, 2018. 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	$	198,317	$	—	$	—
Short-Term Securities		—		269		—
Total	$	198,317	$	269	$	—

During the period ended September 30, 2018, 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.

2018 SEMIANNUAL REPORT 67

PORTFOLIO HIGHLIGHTS IVY MICRO CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	91.1%
Health Care	33.1%
Information Technology	30.6%
Industrials	14.3%
Consumer Discretionary	5.5%
Consumer Staples	2.7%
Real Estate	2.5%
Energy	1.7%
Financials	0.7%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	8.9%

Top 10 Equity Holdings

Company	Sector	Industry
Tactile Systems Technology, Inc.	Health Care	Health Care Equipment
8x8, Inc.	Information Technology	Application Software
Tabula Rasa HealthCare, Inc.	Health Care	Health Care Technology
Mimecast Ltd.	Information Technology	Internet Software & Services
Aerie Pharmaceuticals, Inc.	Health Care	Pharmaceuticals
Kornit Digital Ltd.	Industrials	Industrial Machinery
EVO Payments, Inc., Class A	Information Technology	Data Processing & Outsourced Services
Cornerstone OnDemand, Inc.	Information Technology	Internet Software & Services
Five9, Inc.	Information Technology	Internet Software & Services
PetIQ, Inc.	Health Care	Health Care Distributors

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.

68 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel Retail – 0.5%
Boot Barn Holdings, Inc. (A)		39	$	1,119
Apparel, Accessories & Luxury Goods – 0.6%
Movado Group, Inc.		30		1,257
Auto Parts & Equipment – 2.1%
Motorcar Parts of America, Inc. (A)		186		4,359
Homebuilding – 0.4%
Installed Building Products, Inc. (A)		21		823
Specialty Stores – 1.9%
Hibbett Sports, Inc. (A)		44		827
Sportsman’s Warehouse Holdings, Inc. (A)		528		3,089
				3,916
Total Consumer Discretionary – 5.5%				11,474
Consumer Staples
Distillers & Vintners – 1.9%
MGP Ingredients, Inc. (B)		50		3,974
Packaged Foods & Meats – 0.8%
Calavo Growers, Inc.		17		1,594
Total Consumer Staples – 2.7%				5,568
Energy
Oil & Gas Equipment & Services – 0.6%
NCS Multistage Holdings, Inc. (A)		73		1,200
Oil & Gas Exploration & Production – 1.1%
Ring Energy, Inc. (A)		236		2,339
Total Energy – 1.7%				3,539
Financials
Thrifts & Mortgage Finance – 0.7%
Federal Agricultural Mortgage Corp., Class C		20		1,407
Total Financials – 0.7%				1,407
Health Care
Biotechnology – 1.4%
Natera, Inc. (A)		122		2,929
Health Care Distributors – 2.8%
PetIQ, Inc. (A)(B)		148		5,806
Health Care Equipment – 11.0%
AxoGen, Inc. (A)		144		5,318
K2M Group Holdings, Inc. (A)		207		5,663
Tactile Systems Technology, Inc. (A)		166		11,774
				22,755

COMMON STOCKS (Continued)	Shares		Value
Health Care Supplies – 1.8%
OrthoPediatrics Corp. (A)		70	$	2,546
Sientra, Inc. (A)		51		1,223
				3,769
Health Care Technology – 9.7%
Evolent Health, Inc., Class A (A)		178		5,063
Neuronetics, Inc. (A)		102		3,280
Ra Medical Systems, Inc. (A)		121		2,204
Tabula Rasa HealthCare, Inc. (A)		119		9,663
				20,210
Pharmaceuticals – 6.4%
Aerie Pharmaceuticals, Inc. (A)		140		8,636
Intersect ENT, Inc. (A)		119		3,430
Revance Therapeutics, Inc. (A)		44		1,098
				13,164
Total Health Care – 33.1%				68,633
Industrials
Aerospace & Defense – 2.9%
AAR Corp.		32		1,551
Kratos Defense & Security Solutions, Inc. (A)		95		1,407
Mercury Computer Systems, Inc. (A)		54		2,976
				5,934
Air Freight & Logistics – 1.1%
Air Transport Services Group, Inc. (A)		104		2,229
Building Products – 3.5%
American Woodmark Corp. (A)		36		2,793
PGT Innovations, Inc. (A)		207		4,469
				7,262
Construction & Engineering – 3.0%
MYR Group, Inc. (A)		164		5,357
Sterling Construction Co., Inc. (A)		61		879
				6,236
Industrial Machinery – 3.3%
Kornit Digital Ltd. (A)(B)		317		6,935
Research & Consulting Services – 0.5%
Willdan Group, Inc. (A)		32		1,076
Total Industrials – 14.3%				29,672
Information Technology
Application Software – 5.0%
8x8, Inc. (A)		489		10,400
Data Processing & Outsourced Services – 3.1%
EVO Payments, Inc., Class A (A)		273		6,513

COMMON STOCKS (Continued)	Shares		Value
Internet Software & Services – 17.7%
Bandwidth, Inc., Class A (A)		83	$	4,446
Chegg, Inc. (A)		62		1,768
Cornerstone OnDemand, Inc. (A)		111		6,276
Five9, Inc. (A)		138		6,034
GTT Communications, Inc. (A)(B)		61		2,651
Hortonworks, Inc. (A)		74		1,695
Mimecast Ltd. (A)		219		9,173
Q2 Holdings, Inc. (A)		79		4,796
				36,839
IT Consulting & Other Services – 1.4%
ForeScout Technologies, Inc. (A)		79		2,966
Semiconductor Equipment – 0.9%
Ichor Holdings Ltd. (A)(B)		91		1,863
Semiconductors – 0.2%
nLight, Inc. (A)		16		364
Systems Software – 2.3%
SailPoint Technologies Holdings, Inc. (A)		137		4,659
Total Information Technology – 30.6%				63,604
Real Estate
Health Care REITs – 2.5%
Community Healthcare Trust, Inc.		168		5,212
Total Real Estate – 2.5%				5,212
TOTAL COMMON STOCKS – 91.1%			$	189,109
(Cost: $101,071)
SHORT-TERM SECURITIES	Principal
Commercial Paper (C) – 2.5%
J.M. Smucker Co. (The),
2.400%, 10-1-18	$	2,551		2,551
Mondelez International, Inc.,
2.280%, 10-1-18		2,677		2,676
				5,227
Master Note – 2.7%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (D)		5,681		5,681
Money Market Funds – 6.9%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares,
2.140%, (E)(F)		14,352		14,352

2018 SEMIANNUAL REPORT 69

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

SEPTEMBER 30, 2018 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations – 4.3%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.200%, 10-7-18 (D)	$	979	$	979
2.220%, 10-7-18 (D)		8,000		8,000
				8,979
TOTAL SHORT-TERM SECURITIES – 16.4%			$	34,239
(Cost: $34,240)
TOTAL INVESTMENT SECURITIES – 107.5%			$	223,348
(Cost: $135,311)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (7.5)%				(15,628	)
NET ASSETS – 100.0%			$	207,720

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 $14,553 are on loan.

(C) Rate shown is the yield to maturity at September 30, 2018.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(E) Investment made with cash collateral received from securities on loan.

(F) Rate shown is the annualized 7-day yield at September 30, 2018.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	189,109	$	—	$	—
Short-Term Securities		14,352		19,887		—
Total	$	203,461	$	19,887	$	—

During the period ended September 30, 2018, 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

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

70 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY MID CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	97.9%
Consumer Discretionary	24.1%
Information Technology	22.9%
Industrials	20.4%
Health Care	18.4%
Financials	6.7%
Materials	2.7%
Consumer Staples	2.7%
Purchased Options	0.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.1%

Top 10 Equity Holdings

Company	Sector	Industry
CoStar Group, Inc.	Industrials	Research & Consulting Services
Tractor Supply Co.	Consumer Discretionary	Specialty Stores
Zoetis, Inc.	Health Care	Pharmaceuticals
GrubHub, Inc.	Information Technology	Internet Software & Services
Chipotle Mexican Grill, Inc., Class A	Consumer Discretionary	Restaurants
Fastenal Co.	Industrials	Trading Companies & Distributors
Intuitive Surgical, Inc.	Health Care	Health Care Equipment
Electronic Arts, Inc.	Information Technology	Home Entertainment Software
Abiomed, Inc.	Health Care	Health Care Equipment
Ulta Beauty, Inc.	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.

2018 SEMIANNUAL REPORT 71

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel, Accessories & Luxury Goods – 3.4%
Burberry Group plc (A)		2,581	$	67,788
lululemon athletica, Inc. (B)		593		96,334
				164,122
Auto Parts & Equipment – 1.5%
BorgWarner, Inc.		1,611		68,916
Automotive Retail – 2.1%
O’Reilly Automotive, Inc. (B)		287		99,674
Home Furnishings – 1.2%
Mohawk Industries, Inc. (B)		318		55,730
Hotels, Resorts & Cruise Lines – 1.4%
Norwegian Cruise Line Holdings Ltd. (B)		1,150		66,042
Internet & Direct Marketing Retail – 0.5%
Duluth Holdings, Inc., Class B (B)		765		24,075
Leisure Products – 1.6%
Polaris Industries, Inc.		772		77,891
Restaurants – 4.9%
Chipotle Mexican Grill, Inc., Class A (B)		298		135,273
Dunkin Brands Group, Inc.		1,338		98,628
				233,901
Specialty Stores – 7.5%
Tiffany & Co.		823		106,109
Tractor Supply Co.		1,574		143,064
Ulta Beauty, Inc. (B)		391		110,193
				359,366
Total Consumer Discretionary – 24.1%				1,149,717
Consumer Staples
Food Retail – 1.7%
Sprouts Farmers Market, Inc. (B)		2,963		81,219
Packaged Foods & Meats – 1.0%
Hershey Foods Corp.		459		46,794
Total Consumer Staples – 2.7%				128,013
Financials
Asset Management & Custody Banks – 0.8%
Oaktree Capital Group LLC		891		36,897
Financial Exchanges & Data – 2.6%
CME Group, Inc.		460		78,303
MarketAxess Holdings, Inc.		264		47,046
				125,349
Regional Banks – 3.3%
First Republic Bank		794		76,186
SVB Financial Group (B)		111		34,352

COMMON STOCKS (Continued)	Shares		Value
Regional Banks (Continued)
Western Alliance Bancorp. (B)		849	$	48,287
				158,825
Total Financials – 6.7%				321,071
Health Care
Biotechnology – 1.4%
BioMarin Pharmaceutical, Inc. (B)		684		66,369
Health Care Equipment – 9.6%
Abiomed, Inc. (B)		247		111,221
DexCom, Inc. (B)		508		72,689
Edwards Lifesciences Corp. (B)		613		106,636
Glaukos Corp. (B)		755		49,002
Intuitive Surgical, Inc. (B)		208		119,466
				459,014
Health Care Services – 1.3%
Laboratory Corp. of America Holdings (B)		364		63,162
Health Care Supplies – 1.7%
Cooper Cos., Inc. (The)		233		64,614
National Vision Holdings, Inc. (B)		336		15,165
				79,779
Health Care Technology – 0.5%
Cerner Corp. (B)		373		24,030
Pharmaceuticals – 3.9%
Jazz Pharmaceuticals plc (B)		296		49,751
Zoetis, Inc.		1,492		136,653
				186,404
Total Health Care – 18.4%				878,758
Industrials
Aerospace & Defense – 1.8%
Harris Corp.		435		73,594
Spirit AeroSystems Holdings, Inc.		128		11,757
				85,351
Air Freight & Logistics – 2.0%
Expeditors International of Washington, Inc.		1,307		96,073
Building Products – 2.4%
A. O. Smith Corp.		1,167		62,297
Trex Co., Inc. (B)		674		51,911
				114,208
Construction Machinery & Heavy Trucks – 1.5%
Westinghouse Air Brake Technologies Corp.		674		70,737
Industrial Conglomerates – 1.0%
Fortive Corp. (C)		580		48,815
Industrial Machinery – 3.3%
IDEX Corp.		556		83,751

COMMON STOCKS (Continued)	Shares		Value
Industrial Machinery (Continued)
Middleby Corp. (B)		587	$	75,874
				159,625
Railroads – 1.0%
Kansas City Southern		422		47,802
Research & Consulting Services – 4.9%
CoStar Group, Inc. (B)		349		146,812
TransUnion		1,157		85,101
				231,913
Trading Companies & Distributors – 2.5%
Fastenal Co.		2,073		120,283
Total Industrials – 20.4%				974,807
Information Technology
Application Software – 4.2%
Autodesk, Inc. (B)		352		54,988
Guidewire Software, Inc. (B)		973		98,323
Tyler Technologies, Inc. (B)		195		47,829
				201,140
Communications Equipment – 1.6%
Arista Networks, Inc. (B)		290		77,066
Data Processing & Outsourced Services – 2.2%
Square, Inc., Class A (B)		1,072		106,099
Electronic Components – 1.3%
Maxim Integrated Products, Inc.		1,118		63,038
Electronic Manufacturing Services – 0.5%
IPG Photonics Corp. (B)		142		22,164
Home Entertainment Software – 2.4%
Electronic Arts, Inc. (B)		946		114,005
Internet Software & Services – 6.7%
GrubHub, Inc. (B)		979		135,683
MercadoLibre, Inc.		295		100,522
Pandora Media, Inc. (B)(C)		8,651		82,269
				318,474
Semiconductors – 1.4%
Microchip Technology, Inc. (C)		853		67,278
Systems Software – 2.6%
Proofpoint, Inc. (B)		212		22,559
ServiceNow, Inc. (B)		508		99,381
				121,940
Total Information Technology – 22.9%				1,091,204
Materials
Fertilizers & Agricultural Chemicals – 1.0%
Scotts Miracle-Gro Co. (The)		588		46,332
Specialty Chemicals – 1.7%
Axalta Coating Systems Ltd. (B)		2,367		69,030

72 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Specialty Chemicals (Continued)
RPM International, Inc.		215	$	13,947
				82,977
Total Materials – 2.7%				129,309
TOTAL COMMON STOCKS – 97.9%			$	4,672,879
(Cost: $2,987,209)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Notional Amount
RPM International, Inc.,
Call $70.00, Expires 11-16-18, OTC (Ctrpty: JPMorgan Chase Bank N.A.)		1,573		157		106
TOTAL PURCHASED OPTIONS – 0.0%					$	106
(Cost: $231)

SHORT-TERM SECURITIES	Principal
Commercial Paper (D) – 0.4%
J.M. Smucker Co. (The),
2.400%, 10-1-18	$	7,544	7,542

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (D) (Continued)
Wisconsin Electric Power Co.,
2.250%, 10-4-18	$	5,000	$	4,998
Wisconsin Gas LLC,
2.170%, 10-2-18		8,000		7,998
				20,538
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (E)		2,722		2,722
Money Market Funds – 1.1%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares,
2.140%, (F)(G)		53,029		53,029
Municipal Obligations – 0.3%
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),
1.560%, 10-7-18 (E)		9,600		9,600
University of California (1-Month U.S. LIBOR plus 8 bps),
2.100%, 10-7-18 (E)		6,000		6,000
				15,600

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations – 1.1%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.190%, 10-7-18 (E)	$	11,000	$	11,000
2.200%, 10-7-18 (E)		14,375		14,375
2.220%, 10-7-18 (E)		18,999		18,999
2.240%, 10-7-18 (E)		5,900		5,900
				50,274
TOTAL SHORT-TERM SECURITIES – 3.0%			$	142,163
(Cost: $142,168)
TOTAL INVESTMENT SECURITIES – 100.9%			$	4,815,148
(Cost: $3,129,608)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.9)%				(41,905	)
NET ASSETS – 100.0%			$	4,773,243

Notes to Schedule of Investments

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

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

(C) All or a portion of securities with an aggregate value of $112,093 are on loan.

(D) Rate shown is the yield to maturity at September 30, 2018.

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(F) Investment made with cash collateral received from securities on loan.

(G) Rate shown is the annualized 7-day yield at September 30, 2018.

The following written options were outstanding at September 30, 2018 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type		Number of Contracts		Notional Amount		Expiration Month		Exercise Price		Premium Received		Value
RPM International, Inc.	JPMorgan Chase Bank N.A.		Put		1,573		157		November 2018	$	60.00	$	189	$	(126	)

2018 SEMIANNUAL REPORT 73

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

SEPTEMBER 30, 2018 (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, 2018. 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	$	4,672,879	$	—	$	—
Purchased Options		—		106		—
Short-Term Securities		53,029		89,134		—
Total	$	4,725,908	$	89,240	$	—
Liabilities
Written Options	$	—	$	126	$	—

During the period ended September 30, 2018, securities totaling $61,523 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

The following acronyms are used throughout this schedule:

BVAL = Bloomberg Valuation Benchmark Curve

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

OTC = Over the Counter

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

74 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY MID CAP INCOME OPPORTUNITIES FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	97.0%
Consumer Discretionary	22.6%
Industrials	16.4%
Information Technology	13.8%
Materials	13.7%
Health Care	8.5%
Financials	8.1%
Consumer Staples	5.5%
Real Estate	2.8%
Utilities	2.8%
Energy	2.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.0%

Top 10 Equity Holdings

Company	Sector	Industry
Cinemark Holdings, Inc.	Consumer Discretionary	Movies & Entertainment
Cracker Barrel Old Country Store, Inc.	Consumer Discretionary	Restaurants
V.F. Corp.	Consumer Discretionary	Apparel, Accessories & Luxury Goods
HealthSouth Corp.	Health Care	Health Care Facilities
Service Corp. International	Consumer Discretionary	Specialized Consumer Services
Quest Diagnostics, Inc.	Health Care	Health Care Services
Broadridge Financial Solutions, Inc.	Information Technology	Data Processing & Outsourced Services
National Instruments Corp.	Information Technology	Electronic Equipment & Instruments
OGE Energy Corp.	Utilities	Electric Utilities
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.

2018 SEMIANNUAL REPORT 75

SCHEDULE OF INVESTMENTS IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel, Accessories & Luxury Goods – 2.9%
V.F. Corp.		126	$	11,785
Consumer Electronics – 2.8%
Garmin Ltd.		164		11,469
Home Furnishings – 2.7%
Leggett & Platt, Inc.		255		11,159
Household Appliances – 2.8%
Snap-on, Inc.		62		11,422
Leisure Products – 2.7%
Polaris Industries, Inc.		109		10,990
Movies & Entertainment – 2.9%
Cinemark Holdings, Inc.		300		12,059
Restaurants – 2.9%
Cracker Barrel Old Country Store, Inc. (A)		80		11,795
Specialized Consumer Services – 2.9%
Service Corp. International		265		11,702
Total Consumer Discretionary – 22.6%				92,381
Consumer Staples
Household Products – 2.8%
Clorox Co. (The)		76		11,475
Packaged Foods & Meats – 2.7%
Kellogg Co.		159		11,132
Total Consumer Staples – 5.5%				22,607
Energy
Oil & Gas Storage & Transportation – 2.8%
Targa Resources Corp.		200		11,284
Total Energy – 2.8%				11,284
Financials
Insurance Brokers – 2.8%
Arthur J. Gallagher & Co.		152		11,341
Regional Banks – 5.3%
Glacier Bancorp, Inc.		251		10,803
Umpqua Holdings Corp.		527		10,967
				21,770
Total Financials – 8.1%				33,111
Health Care
Health Care Facilities – 2.9%
HealthSouth Corp.		151		11,777
Health Care Services – 5.6%
Cardinal Health, Inc.		212		11,434

COMMON STOCKS (Continued)	Shares		Value
Health Care Services (Continued)
Quest Diagnostics, Inc.		108	$	11,617
				23,051
Total Health Care – 8.5%				34,828
Industrials
Aerospace & Defense – 2.8%
Harris Corp.		67		11,369
Air Freight & Logistics – 2.8%
C.H. Robinson Worldwide, Inc.		117		11,500
Diversified Support Services – 2.7%
KAR Auction Services, Inc.		183		10,901
Electrical Components & Equipment – 2.7%
Rockwell Automation, Inc.		59		11,101
Environmental & Facilities Services – 2.7%
Republic Services, Inc., Class A		154		11,162
Office Services & Supplies – 2.7%
HNI Corp.		250		11,050
Total Industrials – 16.4%				67,083
Information Technology
Data Processing & Outsourced Services – 5.6%
Broadridge Financial Solutions, Inc.		88		11,567
Paychex, Inc.		155		11,398
				22,965
Electronic Components – 2.7%
Maxim Integrated Products, Inc.		193		10,890
Electronic Equipment & Instruments – 2.8%
National Instruments Corp.		239		11,549
Semiconductors – 2.7%
Microchip Technology, Inc.		141		11,093
Total Information Technology – 13.8%				56,497
Materials
Fertilizers & Agricultural Chemicals – 2.8%
Scotts Miracle-Gro Co. (The)		145		11,435
Paper Packaging – 8.2%
Avery Dennison Corp.		103		11,115
Packaging Corp. of America		100		10,974
Sonoco Products Co.		205		11,381
				33,470
Specialty Chemicals – 2.7%
RPM International, Inc.		169		10,972
Total Materials – 13.7%				55,877

COMMON STOCKS (Continued)	Shares		Value
Real Estate
Residential REITs – 2.8%
American Campus Communities, Inc.		272	$	11,178
Total Real Estate – 2.8%				11,178
Utilities
Electric Utilities – 2.8%
OGE Energy Corp.		317		11,516
Total Utilities – 2.8%				11,516
TOTAL COMMON STOCKS – 97.0%			$	396,362
(Cost: $311,005)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 0.9%
Mondelez International, Inc.,
2.280%, 10-1-18	$	3,756		3,755
Master Note – 1.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (C)		4,550		4,550
Money Market Funds – 2.5%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares,
2.140%, (D)(E)		10,419		10,419
United States Government Agency Obligations – 0.6%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate),
2.190%, 10-7-18 (C)		2,500		2,500
TOTAL SHORT-TERM SECURITIES – 5.1%			$	21,224
(Cost: $21,225)
TOTAL INVESTMENT SECURITIES – 102.1%			$	417,586
(Cost: $332,230)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.1)%				(8,737	)
NET ASSETS – 100.0%			$	408,849

76 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

Notes to Schedule of Investments

(A) All or a portion of securities with an aggregate value of $10,210 are on loan.

(B) Rate shown is the yield to maturity at September 30, 2018.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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) Investment made with cash collateral received from securities on loan.

(E) Rate shown is the annualized 7-day yield at September 30, 2018.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	396,362	$	—	$	—
Short-Term Securities		10,419		10,805		—
Total	$	406,781	$	10,805	$	—

During the period ended September 30, 2018, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

LIBOR = London Inberbank Offered Rate

REIT = Real Estate Investment Trust

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 77

PORTFOLIO HIGHLIGHTS IVY MUNICIPAL BOND FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	1.0%
Financials	1.0%
Bonds	90.3%
Municipal Bonds	90.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	8.7%

Quality Weightings

Investment Grade	80.0%
AAA	4.5%
AA	29.2%
A	35.4%
BBB	10.9%
Non-Investment Grade	10.3%
BB	3.2%
B	0.3%
Non-rated	6.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Equities	9.7%

Our preference is to always use ratings obtained from Standard & Poor’s, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. 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.

78 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

INVESTMENT FUNDS	Shares		Value
Registered Investment Companies – 1.0%
iShares National AMT-Free Muni Bond ETF		77	$	8,301
TOTAL INVESTMENT FUNDS – 1.0%			$	8,301
(Cost: $8,375)
MUNICIPAL BONDS	Principal
Alabama – 1.3%
The Indl Dev Board of Selma, AL, Gulf Opp Zone Bonds, Ser 2009A,
6.250%, 11-1-33	$	2,000		2,091
The Spl Care Fac Fin Auth of Birmingham - Children’s Hosp, Hlth Care Fac Rev Bonds, Ser 2009,
6.000%, 6-1-39		750		770
Water Works Board of Birmingham, AL, Water Rev Bonds, Ser 2009-A:
5.125%, 1-1-34		750		756
Water Works Board of the City of Birmingham, Water Rev Rfdg Bonds, Ser 2015-A,
5.000%, 1-1-35		6,555		7,269
				10,886
Alaska – 0.2%
AK Intl Arpt, Sys Rev and Rfdg Bonds, Ser 2010A,
5.000%, 10-1-21		1,735		1,828
Arizona – 1.5%
AZ Cert of Part, Ser 2010A (Insured by AGM),
5.250%, 10-1-26		3,000		3,090
Maricopa Cnty Indl Dev Auth, Rev Bonds (Banner Hlth), Ser 2016A,
4.000%, 1-1-38		8,500		8,643
Univ Med Ctr Corp. (Tucson, AZ), Hosp Rev Bonds, Ser 2009,
6.500%, 7-1-39		500		517
				12,250
Arkansas – 0.1%
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		839
California – 17.7%
ABAG Fin Auth for Nonprofit Corp., Rev Bonds (Sharp Hlth Care), Ser 2009B,
6.250%, 8-1-39		1,000		1,037
Arpt Comsn, San Francisco Intl Arpt, Second Ser Rev Bonds, Ser 2009E:
6.000%, 5-1-39		3,000		3,074
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 G-1 (SIFMA Municipal Swap Index plus 110 bps),
2.660%, 4-1-45 (A)		10,000		10,323

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
CA (School Facilities) GO Bonds,
5.000%, 11-1-30	$	3,000	$	3,368
CA Cmnty Trans Rev (Installment Sale), Cert of Part (T.R.I.P. - Total Road Impvt Prog), Ser 2012B,
5.250%, 6-1-42		2,245		2,425
CA Hlth Fac Fin Auth, Rev Bonds (Adventist Hlth Sys/West), Ser 2009A,
5.750%, 9-1-39		3,000		3,107
CA Hlth Fac Fin Auth, Rev Bonds (Children’s Hosp of Orange Cnty), Ser 2009A,
6.500%, 11-1-38		2,000		2,107
CA Muni Fin Auth, Cmnty Hosp of Cent CA Oblig Group Cert of Part,
5.500%, 2-1-39		4,460		4,517
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Ser 2009A,
8.500%, 10-1-29		1,000		1,065
CA Muni Fin Auth, Edu Rev Bonds (American Heritage Edu Fndtn Proj), Ser 2016A,
5.000%, 6-1-36		1,000		1,067
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A:
5.000%, 10-1-22		300		312
5.000%, 10-1-33		1,000		1,035
CA Statewide Cmnty Dev Auth, Sch Fac Rev Bonds (Aspire Pub Sch), Ser 2010:
6.000%, 7-1-40		1,745		1,764
6.350%, 7-1-46		970		981
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		1,456
CA Various Purp GO Bonds:
5.250%, 9-1-26		5,000		5,476
5.500%, 4-1-28		5		5
5.250%, 10-1-29		3,000		3,101
5.750%, 4-1-31		5,000		5,094
6.000%, 3-1-33		1,000		1,058
6.500%, 4-1-33		1,000		1,023
5.000%, 4-1-37		5,000		5,477
6.000%, 11-1-39		5,000		5,217
CA Various Purp GO Rfdg Bonds,
5.000%, 2-1-33		10,000		11,011
Carson Redev Agy Redev Proj Area No. 1, Tax Alloc Bonds, Ser 2009A,
7.000%, 10-1-36		750		789
City of Los Angeles, Wastewater Sys Rev Bonds, Rfdg Ser 2015-D,
5.000%, 6-1-34		6,190		7,073
Cmnty Redev Agy of Santa Ana, Merged Proj Area Bonds, Ser 2011A,
6.250%, 9-1-24		2,000		2,198

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
Cnty of Sacramento, 2010 Rfdg Cert of Part, Sacramento Cnty Pub Fac Fin Corp.,
5.750%, 2-1-30	$	2,000	$	2,086
Golden State Tob Securitization Corp., Enhanced Tob Stlmt Asset-Bkd Bonds, Ser 2013A:
5.000%, 6-1-29		1,500		1,658
5.000%, 6-1-30		1,000		1,101
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2015A:
5.000%, 6-1-33		3,165		3,549
5.000%, 6-1-34		2,840		3,175
La Quinta Redev Proj Areas No. 1 and 2, Tax Alloc Rfdg Bonds, Ser 2014A,
5.000%, 9-1-34		750		844
Los Angeles Unif Sch Dist (Cnty of Los Angeles, CA), GO Bonds, Election of 2005, Ser 2009F,
5.000%, 1-1-34		500		511
Los Angeles, Wastewater Sys Rev Bonds, Ser 2015-A,
5.000%, 6-1-35		1,000		1,140
Modesto, CA, Irrigation Dist Fin Auth, Elec Sys Rev Bonds, Ser 2015A,
5.000%, 10-1-36		4,270		4,731
Mountain View Shoreline Reg Park Comnty (Santa Clara Cnty, CA), Rev Bonds, Ser 2011A,
5.000%, 8-1-21		250		270
Palamar Hlth, Rfdg Rev Bonds, Ser 2016,
5.000%, 11-1-39		3,500		3,744
Palomar Hlth, GO Rfdg Bonds, Ser 2016B,
4.000%, 8-1-37		1,000		1,017
Palomar Pomerado Hlth, GO Bonds, Election of 2004, Ser 2009A:
0.000%, 8-1-31 (B)		3,315		2,068
0.000%, 8-1-32 (B)		5,000		2,975
0.000%, 8-1-33 (B)		5,000		2,832
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part,
6.750%, 11-1-39		3,000		3,160
Pub Fac Fin Auth of San Diego, Sr Sewer Rev Bonds, Ser 2009A,
5.250%, 5-15-34		3,000		3,066
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, 2010 Tax Alloc Bonds, Ser E:
5.250%, 10-1-20		570		609
6.000%, 10-1-25		445		482
6.500%, 10-1-40		1,500		1,639
Redev Agy of San Diego, Naval Training Ctr Redev Proj, Tax Alloc Bonds, Ser 2010A,
5.750%, 9-1-40		1,000		1,075
Sacramento Area Flood Ctl Agy, Consolidated Cap Assmt Dist Bonds, Ser 2008 (Insured by BHAC),
5.500%, 10-1-28		500		500

2018 SEMIANNUAL REPORT 79

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
San Jose Merged Area Redev Proj, Hsng Set-Aside Tax Alloc Bonds, Ser 2010A-1,
5.500%, 8-1-35	$	1,000	$	1,067
San Jose, CA, Arpt Rev Bonds, Ser 2011A-1,
5.250%, 3-1-21		3,685		3,945
Santa Ana Unif Sch Dist (Orange County, CA), Election of 2008 Gen Oblig Bond, Series B,
0.000%, 8-1-37 (B)		1,455		688
State Pub Works Board of CA, Lease Rev Bonds (Various Cap Proj), Ser 2011A:
5.250%, 10-1-24		500		549
5.000%, 12-1-24		500		547
State Pub Works Board of CA, Lease Rev Bonds (Various Cap Proj), Ser 2009I,
6.375%, 11-1-34		500		525
State Pub Works Board of CA, Lease Rev Bonds (Various Cap Proj), Ser 2009G-1,
5.750%, 10-1-30		1,000		1,040
Successor Agy to the Redev Agy of the City of Stockton, Tax Alloc Rfdg Bonds, Ser 2016A,
5.000%, 9-1-37		2,000		2,222
The Regents of the Univ of CA, Gen Rev Bonds, Ser 2013AI,
5.000%, 5-15-34		3,500		3,887
Trustees of the CA State Univ, Systemwide Rev Bonds, Ser 2015A,
5.000%, 11-1-38		500		564
Tuolumne Wind Proj Auth, Rev Bonds (Tuolumne Co Proj), Ser 2009A,
5.875%, 1-1-29		1,000		1,010
Upland Unif Sch Dist (San Bernardino Cnty, CA), Election of 2008 GO Bonds, Ser A,
0.000%, 8-1-31 (B)		150		96
Vernon Elec Sys Rev Bonds, Ser 2012A,
5.500%, 8-1-41		2,500		2,690
				146,222
Colorado – 2.8%
Adams 12 Five Star Sch, Adams and Broomfield Cnty, CO Cert of Part, Ser 2008,
5.000%, 12-1-25		500		502
City and Cnty of Broomfield, CO, Rfdg Cert of Part, Ser 2010,
5.000%, 12-1-23		2,565		2,728
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical Academy Proj), Ser 2008A:
6.750%, 12-1-23		1,010		1,018
7.400%, 12-1-38		1,000		1,009

MUNICIPAL BONDS (Continued)	Principal		Value
Colorado (Continued)
CO Edu and Cultural Fac Auth, Independent Sch Rev Rfdg Bonds (Vail Mountain Sch Proj), Ser 2010,
6.125%, 5-1-40	$	2,975	$	3,163
CO Higher Edu Cap Constr, Lease Purchase Fin Prog, Cert of Part, Ser 2008:
5.500%, 11-1-27		1,000		1,003
Denver Hlth and Hosp Auth, Hlthcare Recovery Zone, Fac Rev Bonds, Ser 2010,
5.625%, 12-1-40		3,250		3,373
Joint Sch Dist No. 28J, Adams and Arapahoe Cnty, CO, GO Bonds, Ser 2008,
6.000%, 12-1-28		3,000		3,021
Platte Vly Fire Protection Dist, Weld Cnty, CO, Cert of Part, Ser 2012,
5.000%, 12-1-36		300		315
Rgnl Trans Dist of CO, Cert of Part, Ser 2015A,
5.000%, 6-1-35		1,435		1,593
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010,
6.500%, 1-15-30		5,000		5,278
				23,003
Connecticut – 0.1%
CT GO Bonds, Ser 2012D (SIFMA Municipal Swap Index plus 92 bps),
2.480%, 9-15-19 (A)		1,000		1,008
District Of Columbia – 1.4%
DC Hosp Rev Bonds (Sibley Mem Hosp Issue), Ser 2009,
6.375%, 10-1-39		3,000		3,128
Metro WA DC Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2009C,
0.000%, 10-1-41 (B)		7,000		8,669
				11,797
Florida – 5.5%
Brevard Cnty Hlth Fac Auth, Hlth Rev Bonds (Hlth First, Inc. Proj), Ser 2009B,
7.000%, 4-1-39		500		513
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009,
6.750%, 11-1-39		3,000		3,068
Citizens Ppty Ins Corp., Coastal Account Sr Secured Bonds, Ser 2011A-1,
5.000%, 6-1-20		1,000		1,046
Hillsborough Cnty Aviation Auth, FL Intl Arpt, Sub Rev Bonds, Ser 2015B,
5.000%, 10-1-35		2,000		2,202

MUNICIPAL BONDS (Continued)	Principal		Value
Florida (Continued)
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008B,
8.000%, 8-15-32	$	600	$	637
Miami-Dade Cnty, FL, Aviation Rev Bonds, Miami Intl Arpt (Hub of the Americas), Ser 2009A,
5.500%, 10-1-36		3,000		3,103
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010A,
5.500%, 10-1-41		2,885		3,079
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B,
5.000%, 10-1-23		2,000		2,107
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008B (Insured by AGM),
5.250%, 10-1-22		5,500		6,147
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008C (Insured by BHAC),
6.000%, 10-1-23		2,500		2,500
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A,
7.250%, 10-1-34		3,500		4,005
Orange Cnty Hlth Fac Auth, Rev Bonds (Presbyterian Ret Cmnty Proj), Ser 2016,
5.000%, 8-1-36		4,125		4,462
Osceola Cnty, FL, Sales Tax Rev Rfdg Bonds, Ser 2016A,
5.000%, 10-1-37		2,005		2,239
Palm Beach Co, Hlth Fac Auth Rev Bonds (Lifespace Cmnty, Inc.), Ser 2015C,
5.000%, 5-15-30		1,000		1,059
South Lake Cnty Hosp Dist, Rev Bonds (South Lake Hosp, Inc.), Ser 2009A,
6.250%, 4-1-39		1,000		1,016
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmnty Proj), Ser 2010A,
5.875%, 8-1-40		4,000		4,271
St. Lucie, FL, Util Sys Rfdg Rev Bonds, Ser 2016,
4.000%, 9-1-34		1,000		1,032
Volusia Cnty Edu Fac Auth, Edu Fac Rev Rfdg Bonds (Embry-Riddle Aeronautical Univ, Inc. Proj), Ser 2011,
5.250%, 10-15-22		2,750		3,004
				45,490
Georgia – 1.1%
Atlanta Arpt, Gen Rev Rfdg Bonds, Ser 2010C,
5.750%, 1-1-23		2,000		2,156
Atlanta Dev Auth, Edu Fac Rev Bonds (Panther Place LLC Proj), Ser 2009A,
5.000%, 7-1-37		3,495		3,576

80 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Georgia (Continued)
Atlanta, GA, Water and Wastewater Rev Bonds, Ser 2009B:
5.375%, 11-1-39	$	3,000	$	3,107
Muni Elec Auth of GA, Proj One Sub Bonds, Ser 2008D:
5.750%, 1-1-20		60		60
6.000%, 1-1-23		465		466
				9,365
Hawaii – 0.3%
HI Arpt Sys Rev Bond, Rfdg Ser 2011,
5.000%, 7-1-21		1,000		1,071
HI Dept of Budget and Fin, Spl Purp Rev Bonds (The Queen’s Hlth Sys), Ser 2015A,
5.000%, 7-1-35		1,500		1,662
				2,733
Idaho – 0.5%
Boise City, ID, Arpt Rev Rfdg Bonds (Air Terminal Fac Proj), Ser 2011:
5.750%, 9-1-19		750		774
5.750%, 9-1-20		1,000		1,065
ID Hlth Fac Auth, Rev Bonds (St. Luke’s Hlth Sys Proj), Ser 2008A,
6.750%, 11-1-37		2,000		2,008
				3,847
Illinois – 4.2%
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A:
5.000%, 5-1-26		130		126
5.700%, 5-1-36		1,750		1,691
Build IL Sales Tax Rev Bonds, Ser 2011,
5.000%, 6-15-27		500		531
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Bonds, Ser 2016D (Insured by BAMAC),
5.250%, 1-1-37		2,500		2,826
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Rfdg Bonds, Ser 2015B,
5.000%, 1-1-34		1,000		1,090
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Rfdg Bonds, Ser 2016C,
5.000%, 1-1-34		1,500		1,661
City of Chicago, Second Lien Water Rev Bonds, Ser 2014,
5.000%, 11-1-39		1,500		1,592
City of Chicago, Second Lien Water Rev Bonds, Ser 2000,
5.000%, 11-1-30		500		554
IL Fin Auth, DePaul Univ Rev Bonds, Ser 2016,
5.000%, 10-1-41		2,410		2,643
IL Fin Auth, Rev Bonds (Rush Univ Med Ctr Oblig Group), Ser 2009A,
7.250%, 11-1-30		2,500		2,511
IL Fin Auth, Rev Rfdg Bonds (DePaul Univ), Ser 2016A,
4.000%, 10-1-34		2,000		2,043

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois (Continued)
IL Metro Pier and Exposition Auth, McCormick Place Expansion Proj Rfdg Bonds, Ser 2010B-1,
0.000%, 6-15-43 (B)	$	2,000	$	639
IL Muni Elec Agy, Power Supply Sys Rev Rfdg Bonds, Ser 2015A,
5.000%, 2-1-32		3,695		4,100
IL Sales Tax Rev Bonds (Jr Oblig), Ser 2013,
5.000%, 6-15-26		2,000		2,151
IL State Toll Hwy Auth, Toll Hwy Sr Rev Bonds, Ser 2013A,
5.000%, 1-1-35		4,100		4,433
IL State Toll Hwy Auth, Toll Hwy Sr Rev Bonds, Ser 2015B,
5.000%, 1-1-37		2,000		2,208
Rgnl Trans Auth, Cook, DuPage, Kane, Lake, McHenry and Will Cnty, IL, GO Bonds, Ser 2002A,
6.000%, 7-1-24		3,080		3,630
				34,429
Indiana – 0.1%
IN Muni Power Agy, Power Supply Sys Rfdg Rev Bonds, Ser 2016C,
5.000%, 1-1-39		1,000		1,115
Iowa – 0.7%
Ames, IA, Hosp Rev Rfdg Bonds (Mary Greeley Med Ctr), Ser 2016,
4.000%, 6-15-35		1,510		1,547
IA Higher Edu Loan Auth, Private College Fac Rev and Rfdg Bonds (Upper IA Univ Proj), Ser 2010,
6.000%, 9-1-39		2,145		2,302
IA Higher Edu Loan Auth, Private College Fac Rev Bonds (Upper IA Univ Proj), Ser 2012,
5.000%, 9-1-33		1,750		1,971
				5,820
Kansas – 2.1%
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009,
7.000%, 9-1-38		2,500		2,551
Overland Park, KS, Trans Dev Dist, Sales Tax Rev Bonds (Oak Park Mall Proj), Ser 2010,
5.900%, 4-1-32		2,425		2,490
Saint Marys, KS, Pollutn Ctl Rev Bonds (Westn Res, Inc. Proj), Ser 1994 (Auction rate),
3.120%, 4-15-32 (A)		4,550		4,550
Shawnee Cnty, KS, Cert of Part (First Responders Comm Proj), Ser 2012,
5.000%, 9-1-24		1,050		1,109
Unif Govt of Wyandotte Cnty, Kansas City, KS, Trans Dev Dist Sales Tax Rev Bonds (NFM-Cabela’s Proj), Ser 2006,
5.000%, 12-1-27		285		286

MUNICIPAL BONDS (Continued)	Principal		Value
Kansas (Continued)
Wamego, KS, Pollutn Ctl Rev Bonds (Westn Res, Inc. Proj), Ser 1994 (Auction rate),
2.950%, 4-15-32 (A)	$	6,500	$	6,500
				17,486
Kentucky – 1.0%
Cmnwlth of KY, State Ppty and Bldg Comsn, Rev and Rev Rfdg Bonds, Proj No. 90,
5.750%, 11-1-19		500		501
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A:
5.500%, 6-1-21		500		528
6.375%, 6-1-40		4,500		4,813
6.500%, 3-1-45		2,675		2,866
				8,708
Louisiana – 2.7%
Jefferson Parish Hosp Dist No. 1, Parish of Jefferson, LA, Hosp Rev Bonds, Ser 1998B,
5.250%, 1-1-28		1,000		1,060
LA Citizens Prop Ins Corp., Assmt Rev Rfdg Bonds, Ser 2012,
5.000%, 6-1-24		500		550
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		6,000		6,457
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Rev Bonds (Shreveport Arpt Cargo Fac Proj), Ser 2008C,
7.000%, 1-1-33		1,000		1,012
Lafayette Pub Trust Fin Auth, Rev Bonds (Ragin’ Cajun Fac, Inc. Hsng and Prkg Proj), Ser 2010,
5.250%, 10-1-20		2,040		2,154
New Orleans Aviation Board, Gulf Opp Zone CFC Rev Bonds (Consolidated Rental Car Proj), Ser 2009A,
6.500%, 1-1-40		1,000		1,010
New Orleans Aviation Board, Rev Rfdg Bonds (Restructuring GARBs), Ser 2009A-1,
6.000%, 1-1-23		2,000		2,021
New Orleans, LA, GO Rfdg Bonds, Ser 2012 (Insured by AGM):
5.000%, 12-1-25		1,500		1,634
5.000%, 12-1-26		3,500		3,811
5.000%, 12-1-27		1,500		1,633
Rgnl Transit Auth, New Orleans, LA, Sales Tax Rev Bonds, Ser 2010 (Insured by AGM),
5.000%, 12-1-22		1,000		1,059
				22,401
Maine – 0.4%
ME Edu Loan Auth, Student Loan Rev Bonds (Supplemental Edu Loan Prog), Ser 2009A-3,
5.875%, 12-1-39		650		663

2018 SEMIANNUAL REPORT 81

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Maine (Continued)
ME Tpk Auth, Tpk Rev Rfdg Bonds, Ser 2015,
5.000%, 7-1-34	$	2,255	$	2,520
				3,183
Maryland – 0.5%
MD Econ Dev Corp., Econ Dev Rev Bonds (Terminal Proj), Ser B,
5.750%, 6-1-35		1,750		1,858
MD Econ Dev Corp., Pollutn Ctl Rev Rfdg Bonds (Potomac Elec Proj), Ser 2006,
6.200%, 9-1-22		500		509
MD Hlth and Higher Edu Fac Auth, Rev Bonds, Patterson Park Pub Charter Sch Issue, Ser 2010A,
6.000%, 7-1-40		1,500		1,509
				3,876
Massachusetts – 0.7%
MA Dev Fin Agy, Rev Bonds, Foxborough Rgnl Charter Sch Issue, Ser 2010,
6.375%, 7-1-30		2,350		2,512
MA Edu Fin Auth, Edu Loan Rev Bonds, Issue I, Ser 2009,
6.000%, 1-1-28		415		427
MA Hlth and Edu Fac Auth, Rev Bonds, Springfield College Issue, Ser 2010,
5.625%, 10-15-40		1,000		1,038
MA Hlth and Edu Fac Auth, Rev Rfdg Bonds, Suffolk Univ Issue, Ser 2009A:
5.750%, 7-1-39		1,615		1,657
				5,634
Michigan – 2.4%
Lincoln Consolidated Sch Dist, Cnty of Washtenaw and Wayne, MI, Rfdg Bonds, Ser 2016A,
5.000%, 5-1-35		500		556
MI Fin Auth, Hosp Rev and Rfdg Bonds (Trinity Hlth Credit Group), Ser 2015MI,
5.000%, 12-1-35		3,000		3,236
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2015I,
5.000%, 4-15-34		3,000		3,348
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2016I,
4.000%, 10-15-36		1,000		1,026
MI State Hosp Fin Auth, Hosp Rev and Rfdg Bonds (Henry Ford Hlth Sys), Ser 2009,
5.750%, 11-15-39		5,000		5,206
MI State Hosp Fin Auth, Var Rate Rev Bonds (Ascension Hlth Credit Group), Ser 1999B-4,
5.000%, 11-15-32		2,000		2,247
Royal Oak Hosp Fin Auth, Hosp Rev and Rfdg Bonds (William Beaumont Hosp Oblig Group), Ser 2009W,
6.000%, 8-1-39		2,000		2,065

MUNICIPAL BONDS (Continued)	Principal		Value
Michigan (Continued)
State Bldg Auth, MI, 2008 Rev Rfdg Bonds (Fac Prog), Ser I,
5.000%, 10-15-18	$	305	$	305
State Bldg Auth, Rev and Rev Rfdg Bonds (Fac Prog), Ser 2008I:
6.000%, 10-15-38		2,000		2,003
				19,992
Minnesota – 0.4%
Minneapolis Hlth Care Sys, Rev Bonds (Fairview Hlth Svc), Ser 2008A,
6.750%, 11-15-32		1,000		1,006
Minneapolis-St. Paul Metro Arpt Comsn, Sub Arpt Rev Rfdg Bonds, Ser 2010D,
5.000%, 1-1-20		2,500		2,587
				3,593
Mississippi – 0.1%
The Univ of Southn MS, S.M. Edu Bldg Corp., Rev Bonds (Campus Fac Impvt Proj), Ser 2009,
5.375%, 9-1-36		750		773
Missouri – 2.7%
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A,
6.125%, 12-1-36		175		114
Hlth and Edu Fac Auth, Hlth Fac Rev Bonds (The Children’s Mercy Hosp), Ser 2009:
5.625%, 5-15-39		3,000		3,068
Indl Dev Auth of Cape Girardeau Cnty, MO, Hlth Fac Rev Bonds (Saint Francis Med Ctr), Ser 2009A,
5.750%, 6-1-39		1,000		1,025
Indl Dev Auth of Joplin, MO, Hlth Fac Rev Bonds (Freeman Hlth Sys), Ser 2011,
5.500%, 2-15-31		750		793
Kansas City, MO, Spl Oblig Impvt and Rfdg Bonds (Downtown Arena Proj), Ser 2016E,
5.000%, 4-1-40		2,000		2,189
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Prairie State Proj), Ser 2015A:
5.000%, 12-1-29		1,550		1,740
5.000%, 12-1-30		1,200		1,342
5.000%, 12-1-31		1,000		1,113
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Iatan 2 Proj), Ser 2015A:
5.000%, 12-1-36		5,650		6,209
5.000%, 12-1-37		1,000		1,097
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Prairie State Proj), Ser 2016A,
5.000%, 12-1-40		1,000		1,106

MUNICIPAL BONDS (Continued)	Principal		Value
Missouri (Continued)
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	$	1,167
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		1,106
				22,069
Nebraska – 0.4%
Hosp Auth No. 1 of Sarpy Cnty, NE, Hlth Fac Rev Bonds (Immanuel Oblig Group), Ser 2010,
5.625%, 1-1-40		1,000		1,033
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2015A,
5.000%, 2-1-33		1,000		1,110
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2016A,
5.000%, 2-1-41		1,000		1,095
				3,238
Nevada – 0.7%
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A,
8.000%, 6-15-30		3,500		3,645
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008:
6.500%, 12-1-18		290		292
8.000%, 12-1-25		1,715		1,732
				5,669
New Hampshire – 0.7%
Business Fin Auth, Rev Bonds, Elliot Hosp Oblig Group Issue, Ser 2009A,
6.125%, 10-1-39		1,635		1,702
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A,
6.875%, 7-1-41		1,150		1,232
NH Hlth and Edu Fac Auth, FHA Insd Mtg Rev Bonds, LRG Hlthcare Issue, Ser 2009 (Insured by FHA),
7.000%, 4-1-38		2,485		2,602
				5,536
New Jersey – 3.5%
Hudson Cnty Impvt Auth (Hudson Cnty, NJ), Fac Lease Rev Rfdg Bonds (Hudson Cnty Lease Proj), Ser 2010,
5.375%, 10-1-21		2,500		2,708
NJ Econ Dev Auth, Rev Bonds (Provident Group-Montclair Ppty LLC - Montclair St Univ Student Hsng Proj), Ser 2010A,
5.750%, 6-1-31		3,750		3,982

82 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
New Jersey (Continued)
NJ Econ Dev Auth, Sch Fac Constr Rfdg Bonds, Ser 2011EE,
5.250%, 9-1-24	$	3,045	$	3,205
NJ Edu Fac Auth, Rev Rfdg Bonds, Univ of Medicine and Dentistry of NJ Issue, Ser 2009B,
7.500%, 12-1-32		1,000		1,037
NJ Higher Edu Student Assistance Auth, Student Loan Rev Bonds, Ser 2011-1:
5.000%, 12-1-19		1,885		1,942
5.500%, 12-1-21		1,145		1,246
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds, Barnabas Hlth Issue, Ser 2011A,
5.625%, 7-1-37		500		547
NJ Hlth Care Fac Fin Auth, Rev Bonds, Virtua Hlth Issue, Ser 2009A,
5.500%, 7-1-38		2,000		2,051
NJ Trans Trust Fund Auth, Trans Sys Bonds (Cap Apprec Bonds), Ser 2010A,
0.000%, 12-15-40 (B)		10,000		3,421
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2005B,
5.250%, 12-15-22		3,500		3,847
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2006A (Insured by AGM/CR),
5.500%, 12-15-22		1,500		1,670
Passaic Vly Sewerage Commissioners (NJ), Sewer Sys Bonds, Ser G,
5.750%, 12-1-21		2,935		3,224
				28,880
New York – 9.3%
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		817
Dormitory Auth of the State of NY, State Personal Income Tax Rev Bonds (Gen Purp), Ser 2015C (Tax-Exempt),
5.000%, 2-15-38		5,000		5,506
Long Island Power Auth, Elec Sys Gen Rev Bonds, Ser 2014A (Insured by AGM),
5.000%, 9-1-39		1,500		1,648
Metro Trans Auth, Trans Rev Bonds, Ser 2014C,
5.000%, 11-15-36		2,625		2,899
Metro Trans Auth, Trans Rev Bonds, Ser 2015A-2 (SIFMA Municipal Swap Index plus 58 bps),
2.140%, 11-15-39 (A)		6,000		6,009
Metro Trans Auth, Trans Rev Green Bonds, Ser 2016A-1,
5.000%, 11-15-41		2,105		2,313

MUNICIPAL BONDS (Continued)	Principal		Value
New York (Continued)
Metro Trans Auth, Trans Rev Rfdg Bonds, Ser 2015C-1,
5.000%, 11-15-35	$	2,500	$	2,768
NY Convention Ctr Dev Corp., Rev Rfdg Bonds (Hotel Unit Fee Secured), Ser 2015,
5.000%, 11-15-34		6,000		6,703
NY Dormitory Auth, Mercy Med Ctr Rev Bonds (Catholic Hlth of Long Island Oblig Group), Ser 1999B (Auction rate),
3.881%, 7-1-29 (A)		8,250		8,250
NYC GO Bonds, Fiscal 2014 Ser G,
5.000%, 8-1-30		1,000		1,114
NYC GO Bonds, Ser 2014D-1,
5.000%, 8-1-30		2,000		2,220
NYC Hsng Dev Corp., Multi-Fam Hsng Rev Bonds, Ser 2009K,
4.950%, 11-1-39		2,415		2,442
NYC Indl Dev Agy, Pilot Rev Bonds (Yankee Stadium Proj), Ser 2009A:
0.000%, 3-1-25 (B)		3,175		2,631
0.000%, 3-1-26 (B)		3,185		2,541
0.000%, 3-1-27 (B)		3,000		2,299
NYC Muni Water Fin Auth, Water and Sewer Sys Second Gen Resolution Rev Bonds, Ser 2015HH,
5.000%, 6-15-37		10,000		11,129
NYC Transitional Fin Auth, Bldg Aid Rev Bonds, Ser 2016S-1,
5.000%, 7-15-37		1,000		1,115
NYC Transitional Fin Auth, Future Tax Secured Tax-Exempt Sub Bonds, Ser 2013I,
5.000%, 5-1-29		3,000		3,310
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013TE,
5.000%, 12-15-31		10,000		11,160
				76,874
North Carolina – 0.5%
NC Eastn Muni Power Agy, Power Sys Rev Bonds, Ser 2008C:
6.000%, 1-1-19		35		36
6.750%, 1-1-24		1,000		1,012
NC Tpk Auth, Triangle Expressway Sys Rev Bonds, Ser 2009A:
0.000%, 1-1-37 (B)		3,500		1,657
5.750%, 1-1-39		1,000		1,010
Oak Island, NC, Enterprise Sys Rev Bonds, Ser 2009,
6.000%, 6-1-34		500		513
				4,228
Ohio – 1.1%
Greene Cnty Port Auth, Adult Svc Fac Rev Bonds (Greene, Inc. Proj), Ser 2009,
7.500%, 12-1-33		1,000		1,064
OH Air Quality Dev Auth, Air Quality Rev Bonds (OH Vly Elec Corp. Proj), Ser 2009E,
5.625%, 10-1-19		2,000		2,040

MUNICIPAL BONDS (Continued)	Principal		Value
Ohio (Continued)
OH Air Quality Dev Auth, Envirnmt Impvt Rev Bonds (Buckeye Power, Inc. Proj), Ser 2010,
5.750%, 12-1-30	$	5,000	$	5,365
OH Hosp Fac Rev Bonds (Summa Hlth Sys 2010 Proj):
5.750%, 11-15-40		1,000		1,053
				9,522
Oregon – 1.0%
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2009A,
5.500%, 7-15-35		250		257
Port of Portland, OR, Portland Intl Arpt Rfdg Rev Bonds, Ser Twenty-Three:
5.000%, 7-1-33		5,000		5,584
5.000%, 7-1-34		1,000		1,112
Port of Portland, Portland Intl Arpt, Rev Bonds, Subser 20C,
5.000%, 7-1-22		1,000		1,048
				8,001
Pennsylvania – 6.6%
Butler Cnty Hosp Auth, Hosp Rev Bonds (Butler Hlth Sys Proj), Ser 2009B,
7.250%, 7-1-39		1,000		1,039
Dauphin Cnty Gen Auth, Hlth Sys Rev Bonds (Pinnacle Hlth Sys Proj), Ser 2009A:
6.000%, 6-1-29		2,000		2,051
6.000%, 6-1-36		3,350		3,439
Lycoming Cnty Auth, Hlth Sys Rev Bonds (Susquehanna Hlth Sys Proj), Ser 2009A,
5.750%, 7-1-39		4,000		4,113
PA Auth for Indl Dev, Rev Bonds (MaST Charter Sch Proj), Ser 2010,
6.000%, 8-1-35		750		801
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		3,000		3,324
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009C,
0.000%, 6-1-33 (B)		4,000		4,850
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009D,
5.500%, 12-1-41		3,000		3,122
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2010 B-2:
5.750%, 12-1-28		10,000		10,781
PA Tpk Comsn, Tpk Sub Rev Rfdg Bonds, Ser 2016,
5.000%, 6-1-38		1,000		1,078
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011,
7.250%, 12-15-31		3,000		3,296

2018 SEMIANNUAL REPORT 83

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Pennsylvania (Continued)
Philadelphia, PA, Arpt Rev Bonds, Ser 2010D,
5.250%, 6-15-22	$	5,000	$	5,244
Philadelphia, PA, GO Rfdg Bonds, Ser 2008A (Insured by AGM),
5.250%, 12-15-24		11,195		11,274
				54,412
Puerto Rico – 0.1%
PR Aqueduct and Sewer Auth, Rev Bonds, Ser A,
5.000%, 7-1-28		1,000		1,040
Rhode Island – 0.2%
RI Hlth and Edu Bldg Corp., Hosp Fin Rev Bonds, Lifespan Oblig Group Issue, Ser 2009A,
6.250%, 5-15-30		1,590		1,632
South Carolina – 0.5%
SC Jobs - Econ Dev Auth, Student Hsng Rev Bonds (Coastal Hsng Fndtn LLC Proj), Ser 2009A,
6.500%, 4-1-42		4,015		4,278
Tennessee – 0.9%
Memphis-Shelby Cnty Arpt Auth, Arpt Rfdg Rev Bonds, Ser 2010B,
5.750%, 7-1-25		750		792
Memphis-Shelby Cnty Arpt Auth, Arpt Rfdg Rev Bonds, Ser 2011A-1:
5.750%, 7-1-19		2,220		2,278
5.750%, 7-1-20		1,330		1,409
The Hlth and Edu Fac Board of Johnson City, TN, Hosp Rfdg Rev Bonds (Mountain States Hlth Alliance), Ser 2010A,
6.500%, 7-1-38		2,500		2,689
				7,168
Texas – 10.8%
Austin, TX, Arpt Sys Rev Bonds (Travis, Williamson and Hays Cntys), Ser 2014,
5.000%, 11-15-39		1,000		1,084
Bexar Cnty Hlth Fac Dev Corp., Rev Bonds (Army Ret Residence Fndtn Proj), Ser 2010,
6.200%, 7-1-45		3,250		3,473
Cap Area Cultural Edu Fac Fin Corp., Rev Bonds (The Roman Catholic Diocese of Austin), Ser 2005B,
6.125%, 4-1-45		1,000		1,048
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Rfdg Bonds, Ser 2009A,
9.250%, 3-1-24		3,000		3,095
Clifton Higher Edu Fin Corp., Edu Rev Bonds (IDEA Pub Sch), Ser 2011,
5.750%, 8-15-41		500		548
Clifton Higher Edu Fin Corp., Edu Rev Bonds (Uplift Edu), Ser 2014A,
4.250%, 12-1-34		3,000		3,027

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
Harris Cnty Hlth Fac Dev Corp., Hosp Rev Rfdg Bonds (Mem Hermann Hlthcare Sys), Ser 2008B,
7.000%, 12-1-27	$	2,500	$	2,521
Harris Cnty Hlth Fac Dev Corp., Thermal Util Rev Bonds (Teco Proj), Ser 2008,
5.000%, 11-15-26		2,500		2,510
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A:
6.500%, 5-15-31		1,000		1,110
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2012A,
5.000%, 7-1-32		500		536
North Harris Cnty Rgnl Water Auth, Sr Lien Rev and Rfdg Bonds, Ser 2016,
4.000%, 12-15-35		3,090		3,206
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008D,
0.000%, 1-1-30 (B)		26,000		17,755
Pharr, TX, Higher Edu Fin Auth, Edu Rev Bonds (Idea Pub Sch), Ser 2009A:
6.500%, 8-15-39		1,000		1,039
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009,
6.875%, 12-31-39		2,500		2,630
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		3,000		3,253
7.000%, 6-30-40		5,000		5,368
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2010A,
6.200%, 2-15-40		2,500		2,635
TX Pub Fin Auth, TX Southn Univ Rev Fin Sys Bonds, Ser 2016 (Insured by BAMAC),
4.000%, 5-1-33		500		507
TX Pub Fin Auth, TX Southn Univ Rev Fin Sys Bonds, Ser 2011,
6.750%, 5-1-26		3,740		4,044
TX Tpk Auth, Cent TX Tpk Sys, First Tier Rev Bonds, Ser 2002A (Insured by BHAC):
0.000%, 8-15-26 (B)		24,500		19,610
TX Trans Comsn, Cent TX Tpk Sys Rev Bonds (First Tier Rev Rfdg Bonds), Ser 2015-B,
5.000%, 8-15-37		1,000		1,090
TX Water Dev Board, State Water Implementation Rev Fund for TX Rev Bonds, Ser 2018B,
5.000%, 10-15-38 (C)		8,000		9,196
				89,285

MUNICIPAL BONDS (Continued)	Principal		Value
Utah – 0.1%
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (Syracuse Arts Acadamy Proj), Ser 2017,
5.000%, 4-15-37	$	1,000	$	1,089
Virginia – 0.6%
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C,
7.500%, 7-1-29		3,000		3,041
Isle of Wight Cnty, VA, GO Pub Impvt Bonds, Ser 2008B,
6.000%, 7-1-27		1,605		1,622
				4,663
Washington – 1.3%
Port of Seattle, Intermediate Lien Rev Rfdg Bonds, Ser 2015B,
5.000%, 3-1-35		2,000		2,207
WA Hlth Care Fac Auth, Rev Bonds (Cent WA Hlth Svcs Assoc), Ser 2009,
7.000%, 7-1-39		1,000		1,037
WA Hlth Care Fac Auth, Rev Bonds (Providence Hlth & Svc), Ser 2014D,
5.000%, 10-1-38		5,000		5,425
WA Hlth Care Fac Auth, Rev Bonds (Seattle Cancer Care Alliance), Ser 2008,
7.125%, 3-1-29		2,500		2,553
				11,222
West Virginia – 0.1%
WV Hosp Fin Auth, Hosp Rev Rfdg and Impvt Bonds (WV Utd Hlth Sys Oblig Group), Ser 2009C,
5.500%, 6-1-39		500		512
Wisconsin – 1.4%
Milwaukee Cnty, WI, Arpt Rev Rfdg Bonds, Ser 2010B,
5.000%, 12-1-19		1,000		1,032
WI Gen Fund Annual Appropriation Bonds, Ser 2009A:
5.750%, 5-1-33		1,000		1,023
WI Hlth and Edu Fac Auth, Rev Bonds (Ascension Sr Credit Group), Ser 2016A,
4.000%, 11-15-33		1,000		1,032
WI Hlth and Edu Fac Auth, Rev Bonds (Aurora Hlth Care, Inc.), Ser 2010A,
5.625%, 4-15-39		1,500		1,582
WI Hlth and Edu Fac Auth, Rev Bonds (Med College of WI, Inc.), Ser 2016,
5.000%, 12-1-41		4,000		4,395

84 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Wisconsin (Continued)
WI Hlth and Edu Fac Auth, Rev Bonds (Pro Hlth Care, Inc. Oblig Group), Ser 2009,
6.625%, 2-15-39	$	2,500	$	2,543
				11,607
TOTAL MUNICIPAL BONDS – 90.3%			$	747,203
(Cost: $701,883)
SHORT-TERM SECURITIES
Commercial Paper (D) – 0.4%
J.M. Smucker Co. (The),
2.400%, 10-1-18		3,164		3,163
Master Note – 0.7%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (E)		5,929		5,929
Municipal Obligations – 6.2%
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by FNMA) (BVAL plus 10 bps),
1.550%, 10-7-18 (E)		7,250		7,250
CO Hsng and Fin Auth, Multifam Hsng Rev Bonds (Greentree Vlg Apts Proj), Ser 2007 (GTD by U.S. Bank N.A.) (BVAL plus 24 bps),
1.630%, 10-7-18 (E)		4,400		4,400
FL Muni Power Agy, All-Requirements Power Supply Proj Var Rate Demand Rfdg Rev Bonds, Ser 2008C (GTD by Bank of America N.A.) (BVAL plus 25 bps),
1.650%, 10-1-18 (E)		2,000		2,000

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
Greenville Hosp Sys Board of Trustees, Hosp Rfdg Rev Bonds, Ser 2008B (GTD by U.S. Bank N.A.) (BVAL plus 10 bps),
1.550%, 10-7-18 (E)	$	9,500	$	9,500
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),
1.590%, 10-7-18 (E)		2,500		2,500
MI Strategic Fund, Var Rate Demand Ltd. Oblig Rev Bonds, Ser 2007 (GTD by Air Prods and Chemicals, Inc.) (BVAL plus 23 bps),
1.650%, 10-1-18 (E)		500		500
Minneapolis, MN, Hsng Dev, Rfdg Rev Bonds (One Ten Grant Proj), Ser 1989 (GTD by FNMA) (BVAL plus 8 bps),
1.580%, 10-7-18 (E)		1,500		1,500
NJ Hlth Care Fac Fin Auth, Rev Bonds, AHS Hosp Corp. Issue, Ser 2008C (GTD by JPMorgan Chase & Co.) (BVAL plus 9 bps),
1.550%, 10-7-18 (E)		7,000		7,000
NY Hsng Fin Agy, Related-Caroline Apt Hsng Rev Bonds, Ser 2008A (GTD by FHLMC) (BVAL plus 17 bps),
1.610%, 10-7-18 (E)		5,000		5,000
SC Pub Svc Auth, Rev Commercial Paper Notes, Ser DD (GTD by Bank of America N.A.),
2.330%, 10-17-18		2,900		2,900
Sheridan Redev Agy CO Tax, Var Rfdg S Santa Fe Dr Corridor Redev PJ, Ser A-1 (GTD by JPMorgan Chase & Co.) (BVAL plus 24 bps),
1.650%, 10-7-18 (E)		5,000		5,000

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
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),
1.670%, 10-1-18 (E)	$	2,540	$	2,540
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),
1.580%, 10-7-18 (E)		1,500		1,500
				51,590
United States Government Agency Obligations – 1.4%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.170%, 10-7-18 (E)		6,265		6,265
2.220%, 10-7-18 (E)		5,000		5,000
				11,265
TOTAL SHORT-TERM SECURITIES – 8.7%			$	71,947
(Cost: $71,948)
TOTAL INVESTMENT SECURITIES – 100.0%			$	827,451
(Cost: $782,206)
CASH AND OTHER ASSETS, NET OF LIABILITIES (F) – 0.0%				60
NET ASSETS – 100.0%			$	827,511

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. Description of the reference rate and spread, if applicable, are included in the security description.

(B) Zero coupon bond.

(C) Purchased on a when-issued basis with settlement subsequent to September 30, 2018.

(D) Rate shown is the yield to maturity at September 30, 2018.

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(F) Cash of $364 has been pledged as collateral on open futures contracts.

The following futures contracts were outstanding at September 30, 2018 (contracts unrounded):

Description	Type	Number of Contracts		Expiration Date		Notional Amount		Value			Unrealized Appreciation
U.S. 30-Year Treasury Bond	Short		144		12-19-18		14,400	$	(20,232	)	$	531

2018 SEMIANNUAL REPORT 85

SCHEDULE OF INVESTMENTS IVY MUNICIPAL BOND FUND (in thousands)

SEPTEMBER 30, 2018 (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, 2018. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Investment Funds	$	8,301	$	—	$	—
Municipal Bonds		—		747,203		—
Short-Term Securities		—		71,947		—
Total	$	8,301	$	819,150	$	—
Futures Contracts	$	531	$	—	$	—

During the period ended September 30, 2018, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

AGM = Assured Guaranty Municipal

BAMAC = Build America Mutual Assurance Co.

BHAC = Berkshire Hathaway Assurance Corp.

BVAL = Bloomberg Valuation Municipal AAA Benchmark

FHA = Federal Housing Administration

FHLMC = Federal Home Loan Mortgage Corp.

FNMA = Federal National Mortgage Association

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

SIFMA = Securities Industry and Financial Markets Association

See Accompanying Notes to Financial Statements.

86 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY MUNICIPAL HIGH INCOME FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	0.0%
Bonds	97.0%
Municipal Bonds	97.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.0%

Quality Weightings

Investment Grade	36.3%
AAA	0.2%
AA	1.7%
A	12.9%
BBB	21.5%
Non-Investment Grade	60.7%
BB	17.3%
B	8.6%
CCC	0.4%
Below CCC	0.2%
Non-rated	34.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Equities	3.0%

Our preference is to always use ratings obtained from Standard & Poor’s, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. 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.

2018 SEMIANNUAL REPORT 87

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Education Services – 0.0%
1155 Island Avenue LLC (G)(H)(I)		6,578	$	49
TOTAL COMMON STOCKS – 0.0%			$	49
(Cost: $–)
MUNICIPAL BONDS	Principal
Alabama – 3.0%
AL 21st Century Auth, Tob Stlmt Rev Bonds, Ser 2012-A,
5.000%, 6-1-21	$	1,000		1,068
AL Econ Stlmt Auth, BP Stlmt Rev Bonds, Ser 2016A,
4.000%, 9-15-33		9,000		9,184
Fairfield, AL, GO Warrants, Ser 2012,
6.000%, 6-1-37		8,485		8,403
Jefferson Cnty, AL, Swr Rev Bonds, Ser 2013-D,
6.500%, 10-1-53		10,470		12,254
Lower AL Gas Dist, Gas Proj Rev Bonds, Ser 2016A,
5.000%, 9-1-46		6,000		7,014
				37,923
Alaska – 0.8%
Northn Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2006A Sr Cur Int Bonds,
5.000%, 6-1-46		10,000		10,000
American Samoa – 0.6%
American Samoa Econ Dev Auth, Gen Rev and Rfdg Bonds, Ser 2015A,
6.625%, 9-1-35		8,000		7,728
Arizona – 2.3%
AZ Hlth Fac Auth, Rev Bonds (Banner Hlth), Ser 2007B (3-Month U.S. LIBOR*0.67 plus 81 bps),
0.981%, 1-1-37 (A)		10,000		9,524
AZ Indl Dev Auth, Edu Rev and Rfdg Bonds (AZ Agribusiness & Equine Ctr, Inc. Proj), Ser 2017B,
5.000%, 3-1-42		1,500		1,482
Indl Dev Auth of Pima, Edu Rev Bonds (Noah Webster Sch – Pima Proj), Tax-Exempt Ser 2014A,
7.000%, 12-15-43		1,500		1,619
Indl Dev Auth of Tempe, AZ, Rev Rfdg Bonds (Friendship Vlg of Tempe), Ser 2012A:
6.000%, 12-1-27		2,390		2,560
6.000%, 12-1-32		1,430		1,518
6.250%, 12-1-42		2,150		2,286
6.250%, 12-1-46		2,500		2,656
Indl Dev Auth of Yavapai, Edu Rev Bonds (AZ Agribusiness and Equine Ctr, Inc. Proj), Ser 2011,
7.875%, 3-1-42		5,500		6,245

MUNICIPAL BONDS (Continued)	Principal		Value
Arizona (Continued)
Phoenix, AZ, Indl Dev Auth, Student Hsng Rfdg Rev Bonds (Downtown Phoenix Student Hsng LLC – AZ State Univ Proj), Ser 2018A,
5.000%, 7-1-42	$	1,000	$	1,081
				28,971
California – 11.2%
CA Cnty Tob Securitization Agy, Tob Stlmt Asset-Bkd Bonds (Stanislaus Cnty Tob Funding Corp.), Ser 2006,
0.000%, 6-1-55 (B)		6,250		314
CA Muni Fin Auth, Charter Sch Rev Bonds (Palmdale Aerospace Academy Proj), Ser 2016A:
5.000%, 7-1-41		1,750		1,811
5.000%, 7-1-46		1,670		1,723
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Taxable Ser 2009B,
8.000%, 10-1-22		265		278
CA Muni Fin Auth, Edu Fac Rev Bonds (Literacy First Proj), Ser 2010B,
6.000%, 9-1-30		2,040		2,097
CA Muni Fin Auth, Rev Bonds (Ret Hsng Fndtn Oblig Group), Ser 2017A,
5.000%, 11-15-31		750		873
CA Muni Fin Auth, Sr Lien Rev Bonds (LINXS APM Proj), Ser 2018A:
4.000%, 12-31-47		5,000		4,932
5.000%, 12-31-47		1,500		1,635
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A,
5.000%, 10-1-42		1,200		1,225
CA Sch Fin Auth, Charter Sch Rev Bonds (Encore Edu Oblig Group), Ser 2016A:
5.000%, 6-1-42		2,010		1,790
5.000%, 6-1-52		1,890		1,628
CA Sch Fin Auth, Charter Sch Rev Bonds (Rocketship Pub Sch - Oblig Group), Ser 2017G:
5.000%, 6-1-47		675		693
5.000%, 6-1-53		675		688
CA Sch Fin Auth, Charter Sch Rev Bonds (Summit Pub Sch - Oblig Group), Ser 2017,
5.000%, 6-1-47		1,500		1,605
CA Sch Fin Auth, Charter Sch Rev Rfdg Bonds (Aspire Pub Sch - Oblig Group), Ser 2016,
5.000%, 8-1-41		1,500		1,584
CA Sch Fin Auth, Edu Fac Rev Bonds (River Springs Charter Sch), Ser 2017A:
5.000%, 7-1-47		1,975		2,043
5.000%, 7-1-52		1,000		1,027
CA Sch Fin Auth, Sch Fac Rev Bonds (Alliance for College-Ready Pub Sch Proj), Ser 2016C,
5.250%, 7-1-52		3,660		3,916

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
CA Statewide Cmnty Dev Auth, Edu Fac Rev Bonds (Independence Support LLC Proj), Ser 2015,
7.000%, 6-1-45 (C)	$	4,000	$	2,411
CA Statewide Cmnty Dev Auth, Rev Bonds (Lancer Plaza Proj), Ser 2013:
5.625%, 11-1-33		1,400		1,559
5.875%, 11-1-43		1,890		2,101
CA Statewide Cmnty Dev Auth, Rev Bonds (Loma Linda Univ Med Ctr), Ser 2016A:
5.000%, 12-1-46		3,000		3,192
5.250%, 12-1-56		2,500		2,665
CA Statewide Cmnty Dev Auth, Rfdg Rev Bonds (CA Baptist Univ), Ser 2017A,
5.000%, 11-1-41		1,000		1,095
CA Statewide Cmnty Dev Auth, Sr Living Rev Bonds (Southn CA Presbyterian Homes), Ser 2009:
6.625%, 11-15-24		2,490		2,604
7.000%, 11-15-29		3,500		3,674
7.250%, 11-15-41		6,000		6,316
CA Statewide Cmnty Dev Auth, Student Hsng Rfdg Rev Bonds (Univ of CA, Irvine East Campus Apt, CHF-Irvine LLC), Ser 2016,
5.000%, 5-15-40		1,500		1,641
CA Various Purp GO Bonds:
6.000%, 4-1-35		500		510
Cert of Part, Oro Grande Elem Sch Dist, Ser 2010,
6.125%, 9-15-40		5,000		5,335
Cert of Part, Oro Grande Elem Sch Dist, Ser 2013,
5.125%, 9-15-42		2,760		2,917
Foothill/Eastn Trans Corridor Agy, Toll Road Rfdg Rev Bonds, Ser 2013B-1 (Insured by AGM),
3.950%, 1-15-53		2,800		2,728
Golden State Tob Securitization Corp., Enhanced Tob Stlmt Asset-Bkd Bonds, Ser 2017A-1,
5.000%, 6-1-29		1,250		1,411
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2015A,
5.000%, 6-1-35		6,265		6,980
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2018A-1,
5.000%, 6-1-47		2,000		2,049
Palamar Hlth, Rfdg Rev Bonds, Ser 2016,
4.000%, 11-1-39		8,700		8,329
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part:
6.625%, 11-1-29		2,000		2,104
6.000%, 11-1-41		3,000		3,259
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, 2010 Tax Alloc Bonds, Ser E,
6.500%, 10-1-40		2,500		2,732

88 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
Redev Agy of San Buenaventura, Merged San Buenaventura Redev Proj, 2008 Tax Alloc Bonds:
7.750%, 8-1-28	$	1,000	$	1,003
8.000%, 8-1-38		1,500		1,506
San Buenaventura Rev Bonds (Cmnty Mem Hlth Sys), Ser 2011:
8.000%, 12-1-26		1,400		1,606
8.000%, 12-1-31		9,400		10,611
7.500%, 12-1-41		4,000		4,408
San Diego, CA, Tob Stlmt Rev Funding Corp., Tob Stlmt Bonds, Ser 2018C,
4.000%, 6-1-32		980		1,004
San Mateo Cmnty Fac Dist No. 2008-1 (Bay Meadows), Spl Tax Bonds, Ser 2012,
6.000%, 9-1-42		6,000		6,632
Successor Agy to the Commerce Cmnty Dev Comsn, Tax Alloc Rfdg Bonds, Ser 2018A (Insured by AGM),
5.000%, 8-1-19		250		256
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		13,000		13,059
Tob Securitization Auth of Southn CA, Tob Stlmt Asset-Bkd Bonds (San Diego Cnty Tob Asset Securitization Corp.), Ser A-1,
5.125%, 6-1-46		6,650		6,680
				142,239
Colorado – 4.7%
AR River Power Auth, CO Power Supply Sys Rev Rfdg Bonds, Ser 2018A,
5.000%, 10-1-43		5,000		5,434
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2008,
6.000%, 10-1-40		10,325		10,325
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2010,
6.125%, 10-1-40		5,000		5,242
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical Academy Proj), Ser 2008A,
7.400%, 12-1-38		2,785		2,810
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical Academy Proj), Ser 2008B,
8.000%, 12-1-38		1,090		1,101

MUNICIPAL BONDS (Continued)	Principal		Value
Colorado (Continued)
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (Twin Peaks Charter Academy Proj), Ser 2008,
7.000%, 11-15-38	$	4,000	$	4,025
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		549
5.000%, 9-1-36		1,000		1,001
5.000%, 9-1-46		1,390		1,353
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		3,541
CO Hlth Fac Auth, Rev Bonds (Total Longterm Care Natl Oblig Group Proj), Ser 2010A,
6.250%, 11-15-40		1,250		1,356
CO Hlth Fac Auth, Rev Rfdg Bonds (Christian Living Cmnty Proj), Ser 2012,
5.250%, 1-1-37		1,000		1,028
CO Intl Ctr Metro Dist No. 3, GO Rfdg and Impvt Bonds, Ser 2016,
5.000%, 12-1-46		3,140		2,963
Green Gables Metro Dist No. 1, Ltd. Tax GO Bonds, Ser 2016A,
5.300%, 12-1-46		1,250		1,251
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax GO Rfdg and Impvt Bonds, Ser 2016A,
5.000%, 12-1-45		1,250		1,274
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax Subordinate GO Bonds, Ser 2016B,
7.250%, 12-15-45		500		491
Littleton Vlg Metro Dist No. 2, Ltd. Tax GO and Spl Rev Bonds, Ser 2015,
5.375%, 12-1-45		1,700		1,719
Pub Auth for CO Enrg, Natural Gas Purchase Rev Bonds, Ser 2008,
6.500%, 11-15-38		3,000		4,035
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010,
6.500%, 1-15-30		6,000		6,333
Sierra Ridge Metro Dist No. 2, Ltd. Tax GO Bonds, Ser 2016A,
5.500%, 12-1-46		1,500		1,525
Solaris Metro Dist No. 3, Ltd. Tax GO Rfdg Bonds, Ser 2016A,
5.000%, 12-1-46		1,880		1,924
				59,280

MUNICIPAL BONDS (Continued)	Principal		Value
Connecticut – 0.2%
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	$	1,032
5.000%, 9-1-53		1,600		1,643
				2,675
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 (B)		1,000		1,259
Florida – 4.2%
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009:
6.500%, 11-1-29		3,125		3,198
6.750%, 11-1-39		4,450		4,552
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2014A,
8.250%, 1-1-49 (C)		3,000		2,250
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2016A,
5.750%, 1-1-50 (C)		645		573
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2016B,
7.000%, 1-1-35 (C)		555		529
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2010A:
6.000%, 9-15-40		8,000		8,294
6.125%, 6-15-43		6,500		6,720
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2014A:
6.000%, 6-15-34		110		115
6.125%, 6-15-44		5,300		5,472
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2015A,
6.000%, 6-15-35		2,000		2,091
FL Dev Fin Corp., Rev Bonds (Sculptor Charter Sch Proj), Ser 2008A,
7.250%, 10-1-38		1,890		1,895
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		9,835		10,731
Miami-Dade Cnty Indl Dev Auth, Rev Bonds (Youth Co-Op Charter Sch Proj), Ser 2015A,
6.000%, 9-15-45		3,250		3,276
Mid-Bay Bridge Auth, 1st Sr Lien Rev Bonds, Ser 2015A,
5.000%, 10-1-40		2,000		2,167

2018 SEMIANNUAL REPORT 89

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

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Florida (Continued)
Osceola Cnty, Expressway Sys Rev Bonds (Poinciana Prkwy Proj), Ser 2014A,
5.375%, 10-1-47	$	2,000	$	2,145
				54,008
Georgia – 1.8%
Cobb Cnty, GA, Dev Auth Sr Living Rfdg Rev Bonds (Provident Vlg Creekside Proj), Ser 2016A:
6.000%, 7-1-36		1,250		1,148
6.000%, 7-1-51		4,000		3,502
Greene Cnty Dev Auth, GA, First Mtg Rev Bonds (Glen-I LLC Proj), Ser 2015A,
7.250%, 1-1-46		15,000		14,076
Savannah Econ Dev Auth, Rfdg Rev Bonds (The Marshes of Skidaway Island Proj), Ser 2013,
7.250%, 1-1-49		4,000		4,471
				23,197
Guam – 0.4%
Cert of Part (JFK High Sch Proj), Dept of Edu, GU, Ser 2010A:
6.625%, 12-1-30		1,400		1,437
6.875%, 12-1-40		3,500		3,599
				5,036
Hawaii – 0.2%
Dept of Budget and Fin of HI, Spl Purp Sr Living Rev Bonds (15 Craigside Proj), Ser 2009A,
8.750%, 11-15-29		300		320
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		2,019
				2,339
Idaho – 0.1%
ID Hsng and Fin Assoc (Compass Pub Charter Sch, Inc. Proj), Ser 2010A:
6.250%, 7-1-40		1,000		1,021
6.250%, 7-1-45		550		561
				1,582
Illinois – 8.9%
Cert of Part, Metra Market of Chicago LLC Redev Proj, Ser A,
6.870%, 2-15-24		800		801
Chicago Midway Arpt, Second Lien Rev Rfdg Bonds, Ser 2013B,
5.000%, 1-1-35		3,000		3,230
Chicago Multi-Fam Hsng, Rev Bonds (Goldblatts Supportive Living Proj), Ser 2013,
6.125%, 12-1-43		8,960		7,867
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Bonds, Ser 2015D,
5.000%, 1-1-46		2,000		2,153

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois (Continued)
Chicago O’Hare Intl Arpt, Gen Arpt Third Lien Rev Bonds, Ser 2011A:
5.750%, 1-1-39	$	1,000	$	1,078
Chicago O’Hare Intl Arpt, Sr Spl Fac Rev Bonds (Trips Oblig Group), Ser 2018,
5.000%, 7-1-48		1,000		1,076
Cook Cnty, IL, Recovery Zone Fac Rev Bonds (Navistar Intl Corp. Proj), Ser 2010,
6.750%, 10-15-40		6,500		6,829
IL Fin Auth, Multi-Family Hsng Rev Bonds (St. Anthony of Lansing Proj), Ser 2012,
6.500%, 12-1-32		4,550		4,659
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009:
6.500%, 4-1-44		5,000		5,215
IL Fin Auth, Rev Bonds (Lutheran Home and Svs Oblig Group), Ser 2012:
5.625%, 5-15-42		5,300		5,513
5.750%, 5-15-46		2,500		2,606
IL Fin Auth, Rev Bonds (Navistar Intl Corp. Proj), Ser 2010,
6.750%, 10-15-40		6,500		6,829
IL Fin Auth, Rev Bonds (Rush Univ Med Ctr Oblig Group), Ser 2009A,
7.250%, 11-1-38		2,565		2,576
IL Fin Auth, Rev Bonds (Silver Cross Hosp and Med Ctrs), Ser 2009,
7.000%, 8-15-44		5,000		5,215
IL Fin Auth, Rev Rfdg Bonds (The Admiral at the Lake Proj), Ser 2017:
5.250%, 5-15-42		5,000		5,014
5.250%, 5-15-54		3,000		2,966
IL GO Bonds, Ser 2017D,
5.000%, 11-1-26		10,000		10,557
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		6,054
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2008,
7.000%, 12-1-22		3,615		3,645
SW IL Dev Auth, Local Govt Prog Rev Rfdg Bonds (Granite City Proj), Ser 2012,
5.250%, 3-1-23		4,320		4,328
SW IL Dev Auth, Sr Care Fac Rev Bonds (Eden Ret Ctr, Inc. Proj), Ser 2006,
5.850%, 12-1-36		2,675		2,349
Upper IL River Vly Dev Auth (Pleasant View Luther Home Proj), Rev Bonds, Ser 2010:
7.250%, 11-15-40		1,100		1,136
7.375%, 11-15-45		1,500		1,551

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois (Continued)
Upper IL River Vly Dev Auth, Multi-Fam Hsng Rev Bonds (Deer Park of Huntley Proj), Ser 2012,
6.500%, 12-1-32	$	4,825	$	4,763
Vlg of Bridgeview, Cook Cnty, IL, GO Bonds, Ser 2015A:
5.750%, 12-1-35		2,705		2,690
5.625%, 12-1-41		3,000		2,904
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		1,466
Vlg of Riverdale, Cook Cnty, IL, Unlimited Tax GO Bonds, Ser 2011,
8.000%, 10-1-36		8,000		8,514
				113,584
Indiana – 3.4%
City of Carmel, IN, Rev Bonds, Ser 2012A:
7.000%, 11-15-27		1,575		1,603
7.000%, 11-15-32		2,000		2,011
7.125%, 11-15-42		7,500		7,516
7.125%, 11-15-47		5,750		5,753
IN Fin Auth, Midwestn Disaster Relief Rev Bonds (OH Vly Elec Corp. Proj), Ser 2012A,
5.000%, 6-1-39		5,000		4,987
Lake Station 2008 Bldg Corp., Lake Station, IN, First Mtg Bonds, Ser 2010,
6.000%, 7-15-27		5,170		5,517
Terre Haute, IN, Rev Bonds (Westminister Vlg Proj), Ser 2012,
6.000%, 8-1-39		5,000		5,043
Westfield Redev Dist, Tax Incr Rev Bonds of 2009,
6.500%, 2-1-30		2,000		2,117
Whitestown, IN, Econ Dev Tax Incr Rev Bonds (Perry Indl Park and Whitestown Crossing Proj), Ser 2010A,
7.000%, 2-1-30		5,565		5,922
Whiting, IN, Redev Dist Tax Incr Rev Bonds, Ser 2016,
4.000%, 1-15-32		2,600		2,407
				42,876
Iowa – 0.2%
IA Fin Auth, Rev and Rfdg Bonds (Childserve Proj), Ser 2015B,
5.000%, 6-1-36		2,425		2,566
Kansas – 1.6%
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009:
6.250%, 9-1-24		1,145		1,160
7.000%, 9-1-29		900		920
7.000%, 9-1-38		3,500		3,572

90 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Kansas (Continued)
Atchison, KS, Hosp Rev Bnds (Atchison Hosp Assoc), Ser 2009 (Blmbrg Fair Val Yld Index for the Qualified “A” Rtd Muni Indx 5-Year Mtrty plus 290 bps),
4.480%, 9-1-30 (A)	$	1,000	$	1,022
Lawrence, KS (The Bowersock Mills & Power Co. Hydroelec Proj), Indl Rev Bonds (Recovery Zone Fac Bonds), Ser 2010A,
7.625%, 8-1-37		7,500		7,880
Lenexa, KS, Hlth Care Fac Rev Bonds (Lakeview Village, Inc.), Ser 2018A:
4.000%, 5-15-34		1,000		972
5.000%, 5-15-39		1,500		1,589
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		3,003
				20,118
Kentucky – 1.6%
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A:
6.375%, 6-1-40		5,500		5,882
6.500%, 3-1-45		2,500		2,679
KY Pub Trans Infra Auth, First Tier Toll Rev Bonds, Ser 2013A,
5.750%, 7-1-49		4,000		4,334
Murray, KY, Hosp Fac Rev Bonds (Murray-Calloway Cnty Pub Hosp Corp. Proj), Ser 2010,
6.375%, 8-1-40		2,000		2,150
Pub Enrg Auth of KY, Gas Supply Rev Bonds, Ser 2018B,
4.000%, 1-1-49		5,000		5,280
				20,325
Louisiana – 0.8%
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		4,950		5,036
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Rev Bonds (Shreveport Arpt Cargo Fac Proj), Ser 2008C,
7.000%, 1-1-33		1,000		1,012
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj - Phase IIA), Ser 2014A,
8.375%, 7-1-39 (C)		13,547		—	*
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj), Ser 2013B,
10.500%, 7-1-39 (C)		12,202		—	*
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj), Ser 2015,
7.750%, 7-1-39 (C)		1,977		—	*

MUNICIPAL BONDS (Continued)	Principal		Value
Louisiana (Continued)
New Orleans Aviation Board, Gulf Opp Zone CFC Rev Bonds (Consolidated Rental Car Proj), Ser 2009A,
6.500%, 1-1-40	$	4,600	$	4,647
				10,695
Maine – 0.1%
ME Fin Auth, Solid Waste Disp Rev Bonds (Casella Waste Sys, Inc. Proj), Ser 2015R-2,
4.375%, 8-1-35		1,000		999
Maryland – 0.1%
MD Econ Dev Corp., Econ Dev Rev Bonds (Terminal Proj), Ser B,
5.750%, 6-1-35		1,750		1,858
Massachusetts – 0.3%
MA Dev Fin Agy, Rev Bonds, Foxborough Rgnl Charter Sch Issue, Ser 2010,
7.000%, 7-1-42		4,000		4,344
Michigan – 2.9%
Detroit, MI, GO Bonds, Ser 2004-A (1) (Insured by AMBAC),
5.250%, 4-1-23		220		211
Econ Dev Corp. of Oakland Cnty, Ltd. Oblig Rev Rfdg Bonds (The Roman Catholic Archdiocese of Detroit), Ser 2011,
6.500%, 12-1-20		3,090		3,143
MI Fin Auth, Hosp Rev and Rfdg Bonds (Presbyterian Vlg of MI), Ser 2015,
5.250%, 11-15-35		5,340		5,493
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev and Rev Rfdg Bonds (MI Technical Academy Proj), Ser 2012:
7.100%, 10-1-31 (C)		2,000		60
7.450%, 10-1-41 (C)		3,000		90
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev Bonds (Hanley Intl Academy, Inc. Proj), Ser 2010A,
6.125%, 9-1-40		4,535		4,558
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev Bonds (Old Redford Academy Proj), Ser 2010A:
5.900%, 12-1-30		2,000		1,976
6.500%, 12-1-40		3,000		3,009
MI Pub Edu Fac Auth, Ltd. Oblig Rev Bonds (Old Redford Academy Proj), Ser 2005A,
5.875%, 12-1-30		1,720		1,696
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Ser 2008A,
6.875%, 6-1-42		7,600		7,614
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Ser 2008C,
0.000%, 6-1-58 (B)		100,000		3,043

MUNICIPAL BONDS (Continued)	Principal		Value
Michigan (Continued)
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Sr Current Int Bonds, Ser 2007A,
5.125%, 6-1-22	$	3,335	$	3,331
The Econ Dev Corp. of Dearborn, MI, Ltd. Oblig Rev and Rfdg Rev Bonds (Henry Ford Vlg, Inc. Proj), Ser 2008:
6.000%, 11-15-18		310		310
7.000%, 11-15-38		2,400		2,302
				36,836
Minnesota – 0.3%
Minneapolis Hlth Care Sys, Rev Bonds (Fairview Hlth Svc), Ser 2008B,
6.500%, 11-15-38		3,675		3,695
Missouri – 2.5%
Belton, MO, Tax Incr Rev Bonds (Belton Marketplace Redev Proj), Ser 2012,
6.375%, 12-1-29		445		440
Blue Springs, MO, Spl Oblig Tax Incr and Spl Dist Rfdg and Impvt Bonds (Adams Farm Proj), Ser 2015A,
5.250%, 6-1-39		2,500		2,492
Branson, MO, Indl Dev Auth, Tax Incr Rfdg Rev Bonds (Branson Shoppes Redev Proj), Ser 2017A,
3.900%, 11-1-29		1,050		1,035
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A:
5.875%, 12-1-31		675		438
6.125%, 12-1-36		875		569
Grindstone Plaza Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A:
5.250%, 10-1-21		235		232
5.400%, 10-1-26		1,145		1,092
5.500%, 10-1-31		1,925		1,775
5.550%, 10-1-36		1,725		1,539
Hlth and Edu Fac Auth of MO, Edu Fac Rfdg Rev Bonds, Rockhurst Univ, Ser 2011A,
6.500%, 10-1-30		1,500		1,545
Jennings, MO, Tax Incr and Cmnty Impvt Rfdg Rev Bonds (Northland Redev Area Proj), Ser 2006,
5.000%, 11-1-23		275		238
Kirkwood, MO, Indl Dev Auth, Ret Cmnty Rev Bonds (Aberdeen Heights), Ser 2017A,
5.250%, 5-15-50		4,000		4,192
Lakeside 370 Levee Dist (St. Charles Cnty, MO), Levee Dist Impvt Bonds, Ser 2008,
0.000%, 4-1-55 (B)		3,626		635

2018 SEMIANNUAL REPORT 91

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

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Missouri (Continued)
MO Dev Fin Board, Infra Fac Rev Bonds (Branson Landing Proj), Ser 2005A,
6.000%, 6-1-20	$	415	$	428
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)		2,250		1,059
0.000%, 7-15-37 (B)		4,000		1,786
Stone Canyon Cmnty Impvt Dist, Independence, MO, Rev Bonds (Pub Infra Impvt Proj), Ser 2007,
5.750%, 4-1-27 (C)		1,250		350
Tax Incr Fin Comsn of Kansas City, MO, Tax Incr Rev Bonds (Brywood Ctr Proj), Ser 2010A,
8.000%, 4-1-33 (C)		3,950		1,580
The Indl Dev Auth of Grandview, MO, Tax Incr Rev Bonds (Grandview Crossing Proj 1), Ser 2006,
5.750%, 12-1-28		1,000		150
The Indl Dev Auth of Lee’s Summit, MO, Infra Fac Rev Bonds (Kensington Farms Impvt Proj), Ser 2007,
5.750%, 3-1-29 (C)		2,185		1,398
The Indl Dev Auth of St. Joseph, MO, Hlthcare Rev Bonds (Living Cmnty of St. Joseph Proj), Ser 2002,
7.000%, 8-15-32		8,420		8,422
				31,395
Nebraska – 0.9%
Cent Plains Enrg Proj, Gas Proj Rev Bonds (Proj No. 3), Ser 2012:
5.250%, 9-1-37		8,000		8,725
5.000%, 9-1-42		2,000		2,163
				10,888
Nevada – 0.6%
Director of the State of NV, Dept of Business and Industry Charter Sch Lease Rev Bonds (Somerset Academy), Ser 2015A,
5.125%, 12-15-45		2,515		2,562
NV Dept of Business and Industry, Charter Sch Lease Rev Bonds (Somerset Academy), Ser 2018A,
5.000%, 12-15-48		500		505
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008,
8.000%, 12-1-38		3,265		3,297
Reno, NV, First Lien Sales Tax Rev Rfdg Bonds (Retrac-Reno Trans Rail Access Corridor Proj), Ser 2018A (Insured by AGM),
5.000%, 6-1-48		1,000		1,115
				7,479

MUNICIPAL BONDS (Continued)	Principal		Value
New Hampshire – 0.2%
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A,
6.875%, 7-1-41	$	2,300	$	2,465
New Jersey – 0.9%
NJ Econ Dev Auth, Cigarette Tax Rev Rfdg Bonds, Ser 2012:
5.000%, 6-15-26		1,000		1,064
5.000%, 6-15-28		1,000		1,058
5.000%, 6-15-29		500		527
NJ Econ Dev Auth, Spl Fac Rev Bonds (Continental Airlines, Inc. Proj), Ser 1999,
5.125%, 9-15-23		2,000		2,145
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds (Univ Hosp Issue), Ser 2015A,
5.000%, 7-1-46		2,355		2,551
Tob Stlmt Fin Corp., Tob Stlmt Bonds, Ser 2018B,
5.000%, 6-1-46		4,000		4,226
				11,571
New Mexico – 0.4%
NM Hosp Equip Loan Council, Hosp Impvt and Rfdg Rev Bonds (Gerald Champion Rgnl Med Ctr Proj), Ser 2012A,
5.500%, 7-1-42		4,750		5,055
New York – 4.4%
Build NYC Res Corp., Rev Bonds (Albert Einstein Sch of Medicine, Inc. Proj), Ser 2015,
5.500%, 9-1-45		5,000		5,355
Dormitory Auth, Sch Dist Rev Bond Fin Prog, Ser 2010A (Insured by AGM):
5.000%, 10-1-22		1,000		1,060
Glen Cove Local Econ Assistance Corp., Convertible Cap Apprec Rev Bonds (Garvies Point Pub Impvt Proj), Ser 2016C,
0.000%, 1-1-55 (B)		5,000		4,167
MTA Hudson Rail Yards Trust Oblig, Ser 2016A,
5.000%, 11-15-56		5,000		5,339
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A4,
6.700%, 1-1-49		8,750		9,252
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A5,
6.700%, 1-1-49		2,905		3,070
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014B,
5.500%, 7-1-20		1,488		1,505

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	$	10,771	$	1,831
Nassau Cnty Tob Stlmnt Corp., Tob Stlmnt Asset-Bkd Bonds, Ser 2006A-3 Sr Current Int Bonds,
5.125%, 6-1-46		10,000		9,722
NY Cntys Tob Trust VI, Tob Stlmt Pass-Through Bonds, Ser 2016A,
5.000%, 6-1-51		1,000		1,039
NY Trans Dev Corp., Spl Fac Rev Bonds (Delta Air Lines, Inc. - LaGuardia Arpt Terminals C&D Redev Proj), Ser 2018,
4.000%, 1-1-36		1,000		995
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		10,000		10,199
Westchester Tob Asset Securitization Corp., Tob Stlmt Bonds, Ser 2016B,
5.000%, 6-1-41		2,500		2,670
				56,204
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		1,570
NC Tpk Auth, Monroe Expressway Toll Rev Bonds, Ser 2016C,
0.000%, 7-1-41 (B)		4,160		1,402
				2,972
Ohio – 2.4%
Buckeye Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Ser 2007,
5.125%, 6-1-24		2,870		2,846
Buckeye Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Ser 2007A-2,
5.875%, 6-1-47		10,000		10,000
Cleveland-Cuyahoga Cnty Port Auth, Dev Rev Bonds (Flats East Dev Proj), Ser 2010B,
7.000%, 5-15-40		2,450		2,646
Cnty of Muskingum, OH, Hosp Fac Rev Bonds (Genesis Hlth Care Sys Oblig Group Proj), Ser 2013,
5.000%, 2-15-48		5,000		5,138
Greene Cnty Port Auth, Adult Svc Fac Rev Bonds (Greene, Inc. Proj), Ser 2009,
7.500%, 12-1-33		4,000		4,253
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		4,001

92 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Ohio (Continued)
Summit Cnty Port Auth, OH (Cleveland – Flats East Dev Proj), Ser 2010B,
6.875%, 5-15-40	$	1,175	$	1,266
				30,150
Oklahoma – 0.3%
OK Dev Fin Auth, Hlth Sys Rev Bonds (OU Medicine Proj), Ser 2018B,
5.500%, 8-15-57		3,000		3,312
Oregon – 1.0%
Hosp Fac Auth of Salem, OR, Rev Rfdg Bonds (Cap Manor, Inc.), Ser 2012,
6.000%, 5-15-42		1,900		2,062
OR Fac Auth, Rev Bonds (Concordia Univ Proj), Ser 2010A:
6.125%, 9-1-30		885		942
6.375%, 9-1-40		1,750		1,889
Port of Portland, OR, Portland Intl Arpt Passenger Fac Charge Rev Bonds, Ser 2011A,
5.500%, 7-1-30		5,000		5,419
Salem, OR, Hosp Fac Auth, Rev Bonds (Capital Manor Proj), Ser 2018,
5.000%, 5-15-53 (D)		1,895		2,015
				12,327
Pennsylvania – 5.9%
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2010,
6.125%, 1-1-45		5,000		5,149
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2012,
5.250%, 1-1-41		3,000		3,067
Delaware Cnty Indl Dev Auth, Charter Sch Rev Bonds (Chester Cmnty Charter Sch Proj), Ser 2010A,
6.125%, 8-15-40		13,935		12,282
Delaware Cnty Indl Dev Auth, PA, Rfdg Rev Bonds (Covanta Proj), Ser 2015A,
5.000%, 7-1-43		5,000		5,046
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		2,697
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		1,055
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009E,
6.288%, 12-1-38		16,000		19,495

MUNICIPAL BONDS (Continued)	Principal		Value
Pennsylvania (Continued)
Philadelphia Auth Indl Dev, Rev Bonds (Global Leadership Academy Charter Sch Proj), Ser 2010,
6.375%, 11-15-40	$	1,000	$	1,025
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011:
7.150%, 12-15-36		6,000		6,568
7.625%, 12-15-41		6,925		7,659
Philadelphia Auth Indl Dev, Rev Bonds (New Foundations Charter Sch Proj), Ser 2012,
6.625%, 12-15-41		3,500		3,821
Philadelphia, PA, Gas Works Rev Bonds (1998 Gen Ordinace), Ninth Ser,
5.250%, 8-1-40		755		794
Scranton-Lackawanna Hlth and Welfare Auth, Univ Rev Bonds (Marywood Univ Proj), Ser 2016,
5.000%, 6-1-46		4,265		4,267
The Borough of Langhorne Manor, Higher Edu and Hlth Auth (Bucks Cnty, PA), Hosp Rev Bonds (Lower Bucks Hosp), Ser 1992:
7.300%, 7-1-12 (C)		1,920		806
7.350%, 7-1-22 (C)		3,400		1,428
				75,159
Rhode Island – 0.4%
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2015B,
5.000%, 6-1-50		5,000		5,215
South Carolina – 0.5%
Piedmont Muni Pwr Agy, SC, Elec Rev Rfdg Bonds, Ser 2008C,
5.750%, 1-1-34		1,550		1,681
SC Jobs – Econ Dev Auth, Student Hsng Rev Bonds (Coastal Hsng Fndtn LLC Proj), Ser 2009A,
6.500%, 4-1-42		5,000		5,327
				7,008
Tennessee – 0.3%
Metro Nashville Arpt Auth, Arpt Impvt Rev Bonds, Ser 2015A,
5.000%, 7-1-40		3,000		3,327
Texas – 18.1%
Arlington, TX, Higher Edu Fin Corp., Edu Rev Bonds (Wayside Sch), Ser 2016A:
4.375%, 8-15-36		640		629
4.625%, 8-15-46		1,250		1,235
Arlington, TX, Higher Edu Fin Corp., Rev Bonds (Newman Intl Academy), Ser 2016A,
5.375%, 8-15-36		4,585		4,680

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
Bexar Cnty Hlth Fac Dev Corp., Rev Bonds (Army Ret Residence Fndtn Proj), Ser 2010,
6.200%, 7-1-45	$	1,750	$	1,870
Cap Area Cultural Edu Fac Fin Corp., Rev Bonds (The Roman Catholic Diocese of Austin), Ser 2005B,
6.125%, 4-1-45		3,150		3,302
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Bonds, Ser 2009A,
9.500%, 3-1-33		4,000		4,119
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2010:
0.000%, 1-1-36 (B)		2,500		1,211
0.000%, 1-1-40 (B)		2,000		788
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2015A,
5.000%, 1-1-45		4,000		4,348
Cent TX Rgnl Mobility Auth, Sr Lien Rev Rfdg Bonds, Ser 2016,
5.000%, 1-1-46		2,000		2,180
Cent TX Rgnl Mobility Auth, Sub Lien Rev Rfdg Bonds, Ser 2013:
5.000%, 1-1-33		6,000		6,425
5.000%, 1-1-42		3,000		3,186
Dallas/Fort Worth Intl Arpt, Joint Rev Impvt Bonds, Ser 2013A,
5.000%, 11-1-45		13,500		14,079
Dallas/Fort Worth Intl Arpt, Joint Rev Impvt Bonds, Ser 2013B,
5.000%, 11-1-44		5,000		5,369
Grand Prkwy Trans Corp., First Tier Toll Rev Bonds, Ser 2013A,
5.500%, 4-1-53		15,000		16,603
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		115		122
9.000%, 9-1-38		4,110		4,363
Harris Cnty Cultural Edu Fac Fin Corp., Rev Rfdg Bonds (Space Ctr Houston Proj), Sr Ser 2009,
7.000%, 8-15-28		5,000		5,219
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008:
6.000%, 2-15-33		2,000		2,003
6.000%, 2-15-38		1,850		1,853
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A,
6.875%, 5-15-41		3,800		4,255
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2011B:
5.000%, 7-1-25		1,000		1,073
5.000%, 7-1-26		2,680		2,872
La Vernia Higher Edu Fin Corp. (Winfree Academy Charter Sch), Edu Rev Bonds, Ser 2009,
9.000%, 8-15-38		7,245		7,355

2018 SEMIANNUAL REPORT 93

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

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
La Vernia Higher Edu Fin Corp., Edu Rev Bonds (KIPP, Inc.), Ser 2009A,
6.375%, 8-15-44	$	4,000	$	4,143
Mission Econ Dev Corp., Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff LLC Proj), Ser 2011,
6.875%, 12-1-24		4,275		4,278
Montgomery, TX, Cnty Toll Road Auth, Sr Lien Toll Road Rev Bonds, Ser 2018,
5.000%, 9-15-48		1,000		1,071
New Hope Cultural Edu Fac Fin Corp., Edu Rev Bonds (Jubilee Academic Ctr), Ser 2016A,
5.000%, 8-15-46		6,000		5,973
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		1,279
5.000%, 7-1-46		2,000		2,027
North TX Twy Auth, Spl Proj Sys Rev Bonds Convertible Cap Apprec Bonds, Ser 2011C,
0.000%, 9-1-43 (B)		5,000		5,387
North TX Twy Auth, Sys First Tier Rev Rfdg Bonds, Ser 2016A,
5.000%, 1-1-39		2,000		2,200
Pharr, TX, Higher Edu Fin Auth, Edu Rev Bonds (Idea Pub Sch), Ser 2009A:
6.250%, 8-15-29		1,250		1,295
6.500%, 8-15-39		2,000		2,077
Sanger, TX, Indl Dev Corp., Indl Dev Rev Bonds (TX Pellets Proj), Ser 2012B,
8.000%, 7-1-38 (C)		17,870		5,361
Tarrant Cnty Cultural Edu Fac Fin Corp., Charter Sch Rev Bonds (Trinity Basin Preparatory Proj), Ser 2009A:
7.300%, 6-1-29		400		414
7.750%, 6-1-39		1,200		1,247
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Air Force Vig Oblig Group Proj), Ser 2016,
5.000%, 5-15-45		6,650		6,888
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckner Sr Living – Ventana Proj), Ser 2017A:
6.750%, 11-15-47		1,000		1,100
6.750%, 11-15-52		2,500		2,741
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Mirador Proj), Ser 2010A:
4.625%, 11-15-41 (C)		2,500		1,730
4.875%, 11-15-48 (C)		5,750		3,971
5.000%, 11-15-55 (C)		7,000		4,828

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
TX Muni Gas Acquisition and Supply Corp. III, Gas Supply Rev Bonds, Ser 2012,
5.000%, 12-15-32	$	4,000	$	4,284
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		3,500		3,796
7.500%, 6-30-33		2,700		2,927
7.000%, 6-30-40		14,000		15,031
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009,
6.875%, 12-31-39		17,750		18,677
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Odyssey Academy, Inc.), Ser 2010A,
7.125%, 2-15-40		5,000		5,335
TX Trans Comsn, Cent TX Tpk Sys First Tier Rev Rfdg Bonds, Ser 2012-A,
5.000%, 8-15-41		16,445		17,569
Wise Cnty, TX, Lease Rev Bonds (Parker Cnty Jr College Dist Proj), Ser 2011,
8.000%, 8-15-34		5,000		5,501
				230,269
Utah – 0.4%
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Davis Preparatory Academy), Ser 2010,
6.250%, 7-15-30		1,015		1,065
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Star Academy Proj), Ser 2010B,
7.000%, 7-15-45		2,100		2,200
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (Paradigm High Sch), Ser 2010,
6.375%, 7-15-40		2,160		2,204
				5,469
Vermont – 0.1%
Vermont Econ Dev Auth, Solid Waste Disp Rev Bonds (Casella Waste Sys, Inc. Proj), Ser 2013,
4.625%, 4-1-36		1,000		988
Virgin Islands – 0.2%
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Diageo Proj), Ser 2009A,
6.750%, 10-1-37		3,000		3,033

MUNICIPAL BONDS (Continued)	Principal		Value
Virginia – 3.3%
Econ Dev Auth of James City Cnty, VA, Residential Care Fac Rev Bonds (VA Utd Methodist Homes of Williamsburg, Inc.), Ser 2013A,
2.000%, 10-1-48	$	2,248	$	197
Indl Dev Auth of Smyth Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009A,
8.000%, 7-1-38		4,965		5,039
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C:
7.250%, 7-1-19		125		130
7.500%, 7-1-29		25		25
Marquis Cmnty Dev Auth (VA), Rev Bonds, Ser 2007B,
5.625%, 9-1-41		2,779		1,940
Marquis Cmnty Dev Auth (VA), Rev Bonds, Ser 2007C,
0.000%, 9-1-41 (B)		821		43
Marquis Cmnty Dev Auth (York Country, VA), Convertible Cap Apprec Rev Bonds, Ser 2015,
0.000%, 9-1-45 (B)		859		622
Mosaic Dist Cmnty Dev Auth, Fairfax Cnty, VA, Rev Bonds, Ser 2011A,
6.875%, 3-1-36		4,300		4,623
VA Small Business Fin Auth, Sr Lien Rev Bonds (95 Express Lanes LLC Proj), Ser 2012,
5.000%, 7-1-34		4,590		4,844
VA Small Business Fin Auth, Sr Lien Rev Bonds (Elizabeth River Crossing Opco LLC Proj), Ser 2012:
6.000%, 1-1-37		8,265		9,072
5.500%, 1-1-42		11,000		11,833
VA Small Business Fin Auth, Tax-Exempt Sr Lien Private Activity Rev Bonds (Transform 66 P3 Proj), Ser 2017,
5.000%, 12-31-56		4,000		4,265
				42,633
Washington – 1.0%
Port of Sunnyside, Yakima Cnty, WA, Rev Bonds (Indl Wastewater Treatment Sys), Ser 2008,
6.625%, 12-1-21		2,490		2,496
WA Hlth Care Fac Auth, Rev Bonds (Cent WA Hlth Svcs Assoc), Ser 2009:
6.250%, 7-1-24		795		817
WA Hlth Care Fac Auth, Rev Bonds (Seattle Cancer Care Alliance), Ser 2008,
7.375%, 3-1-38		4,100		4,192

94 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Washington (Continued)
WA State Hsng Fin Comsn (Rockwood Ret Cmnty Proj), Nonprofit Hsng Rev and Rfdg Rev Bonds, Ser 2014A,
7.500%, 1-1-49	$	5,000	$	5,734
				13,239
West Virginia – 0.4%
Brooke Cnty, WV, Rev Bonds (Bethany College), Ser 2011A,
6.750%, 10-1-37		5,000		4,979
Wisconsin – 2.8%
Pub Fin Auth, Edu Rev Bonds (NC Charter Edu Fndtn Proj), Ser 2016A:
5.000%, 6-15-36		1,000		947
5.000%, 6-15-46		5,000		4,534
Pub Fin Auth, Higher Edu Fac Rev Bonds (Wittenberg Univ Proj), Ser 2016,
5.250%, 12-1-39		8,000		8,233
Pub Fin Auth, Sr Arpt Fac Rev and Rfdg Bonds (TrIps Obligated Group), Ser 2012B,
5.000%, 7-1-42		8,500		8,901
WI Hlth and Edu Fac Auth, Rev Bonds (Beloit College), Ser 2010A:
6.125%, 6-1-35		2,220		2,367
6.125%, 6-1-39		1,000		1,066
WI Pub Fin Auth, Edu Rev Bonds (Cornerstone Charter Academy Proj), Ser 2016A,
5.125%, 2-1-46		4,000		3,800
WI Pub Fin Auth, Edu Rev Bonds (Triad Edu Svc), Ser 2015A,
5.500%, 6-15-45		6,000		5,884
				35,732
TOTAL MUNICIPAL BONDS – 97.0%			$	1,235,002
(Cost: $1,244,973)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (E) – 0.1%
Sonoco Products Co.,
2.330%, 10-1-18	$	1,660	$	1,660
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (F)		649		649
Municipal Obligations – 1.5%
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by FNMA) (BVAL plus 10 bps),
1.550%, 10-7-18 (F)		2,000		2,000
CO Hsng and Fin Auth, Multifam Hsng Rev Bonds (Greentree Vlg Apts Proj), Ser 2007 (GTD by U.S. Bank N.A.) (BVAL plus 24 bps),
1.630%, 10-7-18 (F)		7,690		7,690
FL Muni Power Agy, All-Requirements Power Supply Proj Var Rate Demand Rfdg Rev Bonds, Ser 2008C (GTD by Bank of America N.A.) (BVAL plus 25 bps),
1.650%, 10-1-18 (F)		2,060		2,060
Sheridan Redev Agy CO Tax, Var Rfdg S Santa Fe Dr Corridor Redev PJ, Ser A-1 (GTD by JPMorgan Chase & Co.) (BVAL plus 24 bps),
1.650%, 10-7-18 (F)		1,900		1,900
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),
1.670%, 10-1-18 (F)		290		290

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
University of California (1-Month U.S. LIBOR plus 8 bps),
2.100%, 10-7-18 (F)	$	4,175	$	4,175
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),
1.580%, 10-7-18 (F)		600		600
				18,715
TOTAL SHORT-TERM SECURITIES – 1.7%			$	21,024
(Cost: $21,024)
TOTAL INVESTMENT SECURITIES – 98.7%			$	1,256,075
(Cost: $1,265,997)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.3%				16,211
NET ASSETS – 100.0%			$	1,272,286

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, 2018. Description of the reference rate and spread, if applicable, are included in the security description.

(B) Zero coupon bond.

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

(D) Purchased on a when-issued basis with settlement subsequent to September 30, 2018.

(E) Rate shown is the yield to maturity at September 30, 2018.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

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

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

(I) No dividends were paid in the preceding 12 months.

2018 SEMIANNUAL REPORT 95

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

SEPTEMBER 30, 2018 (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, 2018. 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	$	–	$	–	$	49
Municipal Bonds		–		1,235,002		–
Short-Term Securities		–		21,024		–
Total	$	–	$	1,256,026	$	49

During the period ended September 30, 2018, 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

See Accompanying Notes to Financial Statements.

96 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY PZENA INTERNATIONAL VALUE FUND (a)

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	96.8%
Financials	26.1%
Industrials	13.9%
Consumer Discretionary	12.3%
Energy	10.7%
Information Technology	9.1%
Health Care	6.8%
Consumer Staples	6.7%
Telecommunication Services	5.4%
Utilities	3.4%
Materials	2.4%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.2%

Country Weightings

Europe	62.8%
United Kingdom	21.5%
France	12.0%
Switzerland	7.3%
Italy	5.6%
Netherlands	4.4%
Germany	4.2%
Other Europe	7.8%
Pacific Basin	30.2%
Japan	17.9%
Other Pacific Basin	12.3%
North America	3.8%
United States	3.8%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	3.2%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Fujitsu Ltd.	Japan	Information Technology	IT Consulting & Other Services
Inpex Corp.	Japan	Energy	Oil & Gas Exploration & Production
Volkswagen AG, 2.260%	Germany	Consumer Discretionary	Automobile Manufacturers
Lenovo Group Ltd.	Hong Kong	Information Technology	Technology Hardware, Storage & Peripherals
Honda Motor Co. Ltd.	Japan	Consumer Discretionary	Automobile Manufacturers
Publicis Groupe S.A.	France	Consumer Discretionary	Advertising
A.P. Moller - Maersk A/S	Denmark	Industrials	Marine
Roche Holdings AG, Genusscheine	Switzerland	Health Care	Pharmaceuticals
Rexel S.A.	France	Industrials	Trading Companies & Distributors
Saipem S.p.A.	Italy	Energy	Oil & Gas Equipment & Services

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

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

(a) Effective April 30, 2018, the name of Ivy Cundill Global Value Fund was changed to Ivy Pzena International Value Fund.

2018 SEMIANNUAL REPORT 97

SCHEDULE OF INVESTMENTS IVY PZENA INTERNATIONAL VALUE FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Belgium
Financials – 0.7%
KBC Group N.V.		29	$	2,155
Total Belgium – 0.7%				2,155
China
Telecommunication Services – 1.6%
China Mobile Ltd.		472		4,652
Utilities – 1.5%
China Resources Power Holdings Co. Ltd.		2,568		4,540
Total China – 3.1%				9,192
Denmark
Financials – 0.9%
Danske Bank A.S.		101		2,653
Industrials – 2.5%
A.P. Moller - Maersk A/S		5		7,522
Total Denmark – 3.4%				10,175
France
Consumer Discretionary – 2.5%
Publicis Groupe S.A.		127		7,601
Energy – 1.2%
Total S.A.		56		3,600
Financials – 2.3%
Credit Agricole Group		253		3,643
SCOR SE		74		3,458
				7,101
Health Care – 0.8%
Sanofi-Aventis		27		2,391
Industrials – 5.2%
Bouygues S.A.		26		1,140
Rexel S.A.		498		7,479
Schneider Electric S.A.		91		7,292
				15,911
Total France – 12.0%				36,604
Germany
Industrials – 1.5%
Siemens AG		36		4,574
Total Germany – 1.5%				4,574
Hong Kong
Information Technology – 2.5%
Lenovo Group Ltd. (A)		10,556		7,713
Total Hong Kong – 2.5%				7,713

COMMON STOCKS (Continued)	Shares		Value
Italy
Energy – 2.4%
Saipem S.p.A. (B)		1,184	$	7,296
Financials – 0.6%
UniCredit S.p.A.		129		1,943
Telecommunication Services – 0.7%
Telecom Italia S.p.A. (B)		3,435		2,086
Utilities – 1.9%
ENEL S.p.A.		1,152		5,900
Total Italy – 5.6%				17,225
Japan
Consumer Discretionary – 5.1%
Honda Motor Co. Ltd.		252		7,621
Iida Group Holdings Co. Ltd.		93		1,650
Isuzu Motors Ltd.		303		4,778
Toyota Motor Corp.		22		1,380
				15,429
Energy – 2.7%
Inpex Corp.		668		8,336
Financials – 4.4%
Dai-ichi Mutual Life Insurance Co. (The)		148		3,081
Kabushiki Kaisha Mitsubishi Tokyo Financial Group		576		3,593
MS&AD Insurance Group Holdings, Inc.		70		2,331
Sumitomo Mitsui Financial Group, Inc.		107		4,315
				13,320
Industrials – 1.3%
ITOCHU Corp.		81		1,490
West Japan Railway Co.		33		2,280
				3,770
Information Technology – 2.9%
Fujitsu Ltd.		123		8,736
Materials – 1.5%
Hitachi Metals Ltd.		363		4,493
Total Japan – 17.9%				54,084
Netherlands
Energy – 1.5%
Royal Dutch Shell plc, Class A		130		4,449
Financials – 1.7%
ING Groep N.V., Certicaaten Van Aandelen		405		5,262

COMMON STOCKS (Continued)	Shares		Value
Telecommunication Services – 1.2%
Koninklijke KPN N.V.		1,429	$	3,769
Total Netherlands – 4.4%				13,480
Norway
Energy – 0.6%
Nordic American Offshore Ltd.		2,027		1,966
Total Norway – 0.6%				1,966
Singapore
Consumer Staples – 1.6%
Wilmar International Ltd.		2,096		4,938
Financials – 1.6%
DBS Group Holdings Ltd.		248		4,741
Total Singapore – 3.2%				9,679
South Korea
Financials – 1.0%
Hana Financial Group, Inc.		74		2,962
Materials – 0.9%
POSCO		11		2,897
Total South Korea – 1.9%				5,859
Spain
Financials – 1.0%
Bankia S.A.		746		2,927
Total Spain – 1.0%				2,927
Sweden
Information Technology – 2.1%
Telefonaktiebolaget LM Ericsson, B Shares		724		6,423
Total Sweden – 2.1%				6,423
Switzerland
Financials – 3.0%
Credit Suisse Group AG, Registered Shares		296		4,452
UBS Group AG		286		4,512
				8,964
Health Care – 3.6%
Novartis AG, Registered Shares		40		3,458
Roche Holdings AG, Genusscheine		31		7,518
				10,976
Industrials – 0.7%
ABB Ltd.		95		2,247
Total Switzerland – 7.3%				22,187

98 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY PZENA INTERNATIONAL VALUE FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Taiwan
Information Technology – 1.6%
Hon Hai Precision Industry Co. Ltd.		1,831	$	4,750
Total Taiwan – 1.6%				4,750
United Kingdom
Consumer Discretionary – 1.0%
WPP Group plc		202		2,968
Consumer Staples – 5.1%
Imperial Tobacco Group plc		90		3,128
J Sainsbury plc		1,456		6,105
Tesco plc		1,956		6,114
				15,347
Energy – 2.3%
John Wood Group plc		683		6,868
Financials – 8.9%
Aviva plc		610		3,889
Barclays plc		1,998		4,474
HSBC Holdings plc		609		5,321
Royal Bank of Scotland Group plc (The)		1,571		5,119
Standard Chartered plc		654		5,421
Willis Towers Watson plc		20		2,882
				27,106

COMMON STOCKS (Continued)	Shares		Value
Industrials – 2.3%
Travis Perkins plc		500	$	6,950
Telecommunication Services – 1.9%
Vodafone Group plc		2,732		5,858
Total United Kingdom – 21.5%				65,097
United States
Consumer Discretionary – 1.0%
News Corp., Class A		242		3,196
Health Care – 2.4%
Mylan, Inc. (B)		198		7,258
Industrials – 0.4%
Bristow Group, Inc. (A)(B)		99		1,202
Total United States – 3.8%				11,656
TOTAL COMMON STOCKS – 94.1%			$	285,746
(Cost: $286,284)
PREFERRED STOCKS
Germany
Consumer Discretionary – 2.7%
Volkswagen AG, 2.260%		47		8,252
Total Germany – 2.7%				8,252
TOTAL PREFERRED STOCKS – 2.7%			$	8,252
(Cost: $8,187)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (C) – 3.0%
Federal National Mortgage Association 2.010%, 10-1-18	$	5,014	$	5,014
Kroger Co. (The) 2.350%, 10-1-18		4,071		4,070
				9,084
Money Market Funds – 0.1%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares 2.140%, (D)(E)		186		186
TOTAL SHORT-TERM SECURITIES – 3.1%			$	9,270
(Cost: $9,271)
TOTAL INVESTMENT SECURITIES – 99.9%			$	303,268
(Cost: $303,742)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1%				455
NET ASSETS – 100.0%			$	303,723

Notes to Schedule of Investments

(A) All or a portion of securities with an aggregate value of $4,298 are on loan.

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

(C) Rate shown is the yield to maturity at September 30, 2018.

(D) Rate shown is the annualized 7-day yield at September 30, 2018.

(E) Investment made with cash collateral received from securities on loan.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	285,746	$	—	$	—
Preferred Stocks		8,252		—		—
Short-Term Securities		186		9,084		—
Total	$	294,184	$	9,084	$	—

During the period ended September 30, 2018, securities totaling $22,925 were transferred from Level 2 to Level 1. These transfers were the result of fair value procedures applied to international securities due to significant market movement of the S&P 500 on March 31, 2018. Transfers out of Level 2 represent the values as of the beginning of the reporting period.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 99

PORTFOLIO HIGHLIGHTS IVY SECURIAN CORE BOND FUND (a)

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	0.3%
Bonds	97.5%
Corporate Debt Securities	34.6%
United States Government and Government Agency Obligations	26.0%
Asset-Backed Securities	18.9%
Mortgage-Backed Securities	16.7%
Municipal Bonds - Taxable	1.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.2%

Quality Weightings

Investment Grade	80.8%
AAA	13.0%
AA	24.1%
A	11.5%
BBB	32.2%
Non-Investment Grade	16.7%
BB	9.6%
B	2.8%
CCC	0.0%
Below CCC	0.0%
Non-rated	4.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Equities	2.5%

Our preference is to always use ratings obtained from Standard & Poor’s, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. 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.

(a) Effective April 30, 2018, the name of Ivy Advantus Bond Fund was changed to Ivy Securian Core Bond Fund.

100 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY SECURIAN CORE BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

PREFERRED STOCKS	Shares		Value
Real Estate
Health Care REITs – 0.3%
Ventas, Inc., 5.450%		100	$	2,490
Total Real Estate – 0.3%				2,490
TOTAL PREFERRED STOCKS – 0.3%			$	2,490
(Cost: $2,500)
ASSET-BACKED SECURITIES	Principal
Air Canada Enhanced Equipment Trust, Series 2015-2, Class AA,
3.550%, 1-15-30 (A)	$	4,950		4,723
Air Canada Pass Through Certificates, Series 2015-1, Class C,
5.000%, 3-15-20 (A)		6,430		6,470
America West Airlines, Inc., Pass Through Certificates, Series 1999-1,
7.930%, 1-2-19		138		140
America West Airlines, Inc., Pass Through Certificates, Series 2000-1,
8.057%, 7-2-20		662		706
American Airlines Class B Pass Through Certificates, Series 2013-2,
5.600%, 7-15-20 (A)		2,337		2,378
American Airlines Class B Pass Through Certificates, Series 2016-3,
3.750%, 10-15-25		4,024		3,885
American Airlines Pass-Through Trusts, Pass-Through Certificates, Series 2013-1,
3.700%, 5-1-23		1,445		1,417
American Airlines Pass-Through Trusts, Pass-Through Certificates, Series 2017-1B,
4.950%, 2-15-25		439		442
American Airlines, Inc., Class A Pass Through Certificates, Series 2013-2,
5.625%, 1-15-21 (A)		4,639		4,725
AXIS Equipment Finance Receivables LLC, Series 2018-1A,
3.240%, 12-20-23 (A)		5,350		5,322
Bank of the West Auto Trust, Series 2017-1, Class D,
3.210%, 4-15-25 (A)		4,500		4,381
Bellemeade Re Ltd., Series 2017-1, Class M1 (1-Month U.S. LIBOR plus 150 bps),
3.916%, 10-25-27 (A)(B)		3,758		3,782
BNSF Funding Trust I,
6.613%, 12-15-55		6,292		6,984
CarMax Auto Owner Trust, Series 2018-1, Class C,
2.950%, 11-15-23		3,700		3,626
CCG Receivables Trust, Series 2015-1, Class A3,
2.750%, 11-14-23 (A)		3,250		3,195

ASSET-BACKED SECURITIES (Continued)	Principal		Value
Chesapeake Funding II LLC 2016-2A, Class D,
4.000%, 6-15-28 (A)	$	2,135	$	2,140
Chesapeake Funding II LLC 2017-2A, Class D:
3.710%, 5-15-29 (A)		2,050		2,042
3.380%, 8-15-29 (A)		2,500		2,464
Chesapeake Funding II LLC 2017-4A, Class D,
3.260%, 11-15-29 (A)		3,375		3,310
Chesapeake Funding II LLC 2018-1A, Class C,
3.570%, 4-15-30 (A)		3,100		3,071
CommonBond Student Loan Trust, Series 2017-BGS, Class C,
4.440%, 9-25-42 (A)		750		753
Continental Airlines Pass Through Certificates, Series 2001-1 A-1,
8.048%, 11-1-20		358		375
Continental Airlines Pass Through Certificates, Series 2009-2,
7.250%, 11-10-19		1,091		1,133
Continental Airlines Pass Through Certificates, Series 2010-1B,
6.000%, 1-12-19		453		456
Continental Airlines, Inc. Class B Pass Through Certificates, Series 2012-1B,
6.250%, 4-11-20		1,255		1,286
CVS Caremark Corp. Pass-Through Trust:
6.036%, 12-10-28		8,704		9,281
6.943%, 1-10-30		2,739		3,057
Delta Air Lines, Inc. Class A Pass Through Certificates, Series 2010-2,
4.250%, 7-30-23		1,940		1,936
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1A,
4.750%, 5-7-20		955		972
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1B,
6.875%, 5-7-19 (A)		2,449		2,504
DT Auto Owner Trust, Series 2015-3A, Class D,
4.530%, 10-17-22 (A)		6,908		6,964
Earnest Student Loan Program LLC, Series 2016-B, Class A2:
8.250%, 4-17-23 (A)		8,200		8,743
3.020%, 5-25-34 (A)		1,572		1,557
Earnest Student Loan Program LLC, Series 2017-A, Class B,
3.590%, 1-25-41 (A)		1,652		1,631
Fan Engine Securitization Ltd., Series 2013-1X,
3.000%, 10-15-19 (A)(C)		231		228
Flagship Credit Auto Trust, Series 2016-1, Class D,
8.590%, 5-15-23 (A)		4,200		4,429
Foursight Capital Automobile Receivables Trust, Series 2016-1, Class B:
2.340%, 1-15-21 (A)		493		492
3.710%, 1-18-22 (A)		3,202		3,161

ASSET-BACKED SECURITIES (Continued)	Principal		Value
GM Financial Securitized Term Auto Receivables Trust 2018-1, Class C,
2.770%, 7-17-23	$	1,400	$	1,368
Hawaiian Airlines Pass Through Certificates, Series 2013-1,
4.950%, 1-15-22		4,680		4,691
Hyundai Auto Receivables Trust 2016-B, Class D,
2.680%, 9-15-23		2,520		2,467
Invitation Homes Trust, Series 2018-SFR2 (1-Month U.S. LIBOR plus 128 bps),
3.438%, 6-17-37 (A)(B)		4,000		4,005
One Market Plaza Trust, Series 2017-1MKT,
3.614%, 2-10-32 (A)		4,000		3,976
PFS Financing Corp., Series 2018-A (1-Month U.S. LIBOR plus 40 bps),
2.463%, 2-15-22 (A)(B)		5,900		5,899
Prestige Auto Receivables Trust, Series 2016-1A, Class E,
7.690%, 3-15-23 (A)		2,000		2,066
Progress Residential Trust, Series 2017-SFR1, Class D,
3.565%, 8-17-34 (A)		2,750		2,677
Progress Residential Trust, Series 2018-SFR1,
3.684%, 3-17-35 (A)		4,500		4,421
SoFi Professional Loan Program LLC, Series 2015-A2,
2.420%, 3-25-30 (A)		650		640
SoFi Professional Loan Program LLC, Series 2017-F,
2.840%, 1-25-41 (A)		5,500		5,332
SoFi Professional Loan Program LLC, Series 2018-A,
2.950%, 2-25-42 (A)		3,500		3,405
U.S. Airways, Inc., Series 2012-2, Class A,
6.750%, 6-3-21		2,976		3,139
United Airlines Pass-Through Certificates, Series 2014-1B,
4.750%, 4-11-22		833		839
United Airlines Pass-Through Certificates, Series 2014-2B,
4.625%, 9-3-22		3,474		3,488
Virgin Australia 2013-1B Trust,
6.000%, 10-23-20 (A)		482		487
Volvo Financial Equipment LLC, Series 2018-1A,
3.060%, 12-15-25 (A)		2,600		2,567
Westlake Automobile Receivables Trust 2018-1A,
2.920%, 5-15-23 (A)		5,500		5,450
Wheels SPV LLC 2016-1A, Class A3,
1.870%, 5-20-25 (A)		925		915
TOTAL ASSET-BACKED SECURITIES – 18.9%			$	171,993
(Cost: $172,951)

2018 SEMIANNUAL REPORT 101

SCHEDULE OF INVESTMENTS IVY SECURIAN CORE BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES	Principal		Value
Consumer Discretionary
Housewares & Specialties – 0.2%
Newell Rubbermaid, Inc.,
5.000%, 11-15-23	$	1,678	$	1,697
Total Consumer Discretionary – 0.2%				1,697
Consumer Staples
Distillers & Vintners – 0.6%
Bacardi Ltd.,
5.300%, 5-15-48 (A)		5,125		5,014
Total Consumer Staples – 0.6%				5,014
Energy
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),
5.099%, 6-1-67 (B)		5,750		5,721
Oil & Gas Refining & Marketing – 1.1%
Marathon Petroleum Corp.,
5.850%, 12-15-45		5,097		5,356
PBF Holding Co. LLC and PBF Finance Corp.,
7.250%, 6-15-25		2,500		2,625
QEP Resources, Inc.,
5.625%, 3-1-26		1,900		1,817
				9,798
Oil & Gas Storage & Transportation – 3.3%
Cheniere Corpus Christi Holdings LLC:
5.875%, 3-31-25		500		525
5.125%, 6-30-27		2,000		2,008
Cheniere Energy Partners L.P.,
5.250%, 10-1-25		3,000		3,000
Energy Transfer Partners L.P.,
6.250%, 2-15-66		3,620		3,484
EQT Midstream Partners L.P.,
6.500%, 7-15-48		6,375		6,744
Sabine Pass Liquefaction LLC,
5.625%, 3-1-25		2,950		3,145
Sunoco Logistics Partners Operations L.P. (GTD by Energy Transfer Partners L.P.),
5.400%, 10-1-47		2,750		2,716
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.),
6.850%, 2-15-40		1,265		1,413
Tennessee Gas Pipeline Co.,
8.375%, 6-15-32		3,200		4,038
Tesoro Logistics L.P. and Tesoro Logistics Finance Corp.:
6.375%, 5-1-24		250		265
5.250%, 1-15-25		2,500		2,561
				29,899
Total Energy – 5.0%				45,418

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Financials
Asset Management & Custody Banks – 0.6%
AXA Equitable Holdings, Inc.,
5.000%, 4-20-48 (A)	$	5,660	$	5,265
Consumer Finance – 1.9%
Discover Bank:
8.700%, 11-18-19		458		483
3.100%, 6-4-20		1,220		1,212
3.450%, 7-27-26		3,975		3,697
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.) (3-Month U.S. LIBOR plus 85 bps),
3.189%, 4-9-21 (B)		4,100		4,116
Hyundai Capital America:
2.750%, 9-18-20 (A)		5,000		4,902
3.750%, 7-8-21 (A)		3,050		3,033
				17,443
Diversified Banks – 4.9%
Bank of America Corp.,
4.271%, 7-23-29		4,300		4,291
Bank of America Corp. (3-Month U.S. LIBOR plus 77 bps),
3.111%, 2-5-26 (B)		9,550		9,388
Citizens Bank N.A. (3-Month U.S. LIBOR plus 95 bps),
3.284%, 3-29-23 (B)		10,400		10,413
Comerica, Inc.,
4.000%, 7-27-25		2,150		2,113
Compass Bank:
3.500%, 6-11-21		2,000		1,990
3.875%, 4-10-25		5,750		5,515
HSBC Holdings plc,
3.262%, 3-13-23		3,600		3,527
Sumitomo Mitsui Banking Corp.,
2.514%, 1-17-20		2,200		2,182
U.S. Bancorp,
5.300%, 12-29-49		1,675		1,671
Wells Fargo & Co.,
3.000%, 10-23-26		1,500		1,391
ZB N.A.,
3.500%, 8-27-21		1,700		1,690
				44,171
Investment Banking & Brokerage – 1.9%
Charles Schwab Corp. (The),
4.625%, 12-29-49 (D)		4,200		4,221
Goldman Sachs Group, Inc. (The),
5.250%, 7-27-21		1,000		1,047
Morgan Stanley:
5.500%, 7-28-21		1,090		1,147
3.125%, 7-27-26		1,400		1,304
5.450%, 12-29-29		4,950		5,007
Morgan Stanley (3-Month U.S. LIBOR plus 122 bps),
3.563%, 5-8-24 (B)		4,650		4,725
				17,451

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Life & Health Insurance – 1.0%
Teachers Insurance & Annuity Association of America,
4.270%, 5-15-47 (A)	$	5,000	$	4,843
Unum Group,
5.750%, 8-15-42		3,750		3,926
				8,769
Other Diversified Financial Services – 2.3%
Citigroup, Inc.,
4.400%, 6-10-25		5,000		4,989
Jefferies Group LLC and Jefferies Group Capital Finance, Inc.,
4.150%, 1-23-30		2,915		2,618
JPMorgan Chase & Co.,
5.000%, 12-29-49		4,975		5,012
JPMorgan Chase & Co. (3-Month U.S. LIBOR plus 347 bps),
5.809%, 4-29-49 (B)		6,000		6,025
TIAA Asset Management Finance Co. LLC,
4.125%, 11-1-24 (A)		2,125		2,101
				20,745
Property & Casualty Insurance – 0.8%
Liberty Mutual Group, Inc. (3-Month U.S. LIBOR plus 290.5 bps),
5.239%, 3-15-37 (A)(B)		7,700		7,507
Regional Banks – 0.8%
Synovus Financial Corp.:
3.125%, 11-1-22		5,680		5,455
5.750%, 12-15-25		2,000		2,065
				7,520
Specialized Finance – 0.9%
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.:
5.450%, 6-15-23 (A)		4,540		4,769
8.350%, 7-15-46 (A)		2,930		3,638
				8,407
Total Financials – 15.1%				137,278
Health Care
Health Care Facilities – 0.3%
NYU Hospitals Center,
4.428%, 7-1-42		2,315		2,308
Health Care Supplies – 0.3%
Bio-Rad Laboratories, Inc.,
4.875%, 12-15-20		2,500		2,567
Managed Health Care – 0.3%
Halfmoon Parent, Inc.,
4.125%, 11-15-25 (A)		3,100		3,090
Total Health Care – 0.9%				7,965

102 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY SECURIAN CORE BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Industrials
Aerospace & Defense – 0.3%
Spirit AeroSystems, Inc. (GTD by Spirit AeroSystems Holdings, Inc.),
3.950%, 6-15-23	$	2,425	$	2,413
Airlines – 0.3%
British Airways plc,
5.625%, 6-20-20 (A)		606		613
U.S. Airways Group, Inc., Class A,
6.250%, 4-22-23		2,453		2,618
				3,231
Construction Machinery & Heavy Trucks – 0.3%
Westinghouse Air Brake Technologies Corp. (3-Month U.S. LIBOR plus 105 bps),
3.382%, 9-15-21 (B)		2,700		2,706
Trading Companies & Distributors – 0.6%
GATX Corp.,
4.550%, 11-7-28		5,500		5,485
Total Industrials – 1.5%				13,835
Information Technology
Application Software – 0.6%
Block Financial LLC (GTD by H&R Block, Inc.),
4.125%, 10-1-20		5,000		5,047
Total Information Technology – 0.6%				5,047
Materials
Diversified Metals & Mining – 0.5%
FMG Resources August 2006 Partners Ltd.,
5.125%, 3-15-23 (A)		5,000		4,944
Total Materials – 0.5%				4,944
Real Estate
Specialized REITs – 0.6%
American Tower Corp.,
3.070%, 3-15-23 (A)		3,100		3,027
Ventas Realty L.P. (GTD by Ventas, Inc.),
3.100%, 1-15-23		2,300		2,233
				5,260
Total Real Estate – 0.6%				5,260
Telecommunication Services
Integrated Telecommunication Services – 1.0%
AT&T, Inc.,
4.500%, 3-9-48		6,000		5,227

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Integrated Telecommunication Services (Continued)
Verizon Communications, Inc. (3-Month U.S. LIBOR plus 110 bps),
3.414%, 5-15-25 (B)	$	3,925	$	3,959
				9,186
Total Telecommunication Services – 1.0%				9,186
Utilities
Electric Utilities – 6.2%
Calpine Corp.,
5.875%, 1-15-24 (A)		3,000		3,022
Cleco Corporate Holdings LLC:
3.743%, 5-1-26 (E)		2,200		2,076
4.973%, 5-1-46 (E)		2,075		2,037
Cleveland Electric Illuminating Co.,
3.500%, 4-1-28 (A)		1,875		1,768
El Paso Electric Co.,
5.000%, 12-1-44		2,225		2,252
Entergy Mississippi, Inc.,
3.250%, 12-1-27		2,750		2,593
Entergy Texas, Inc.,
3.450%, 12-1-27		3,600		3,420
FirstEnergy Transmission LLC,
5.450%, 7-15-44 (A)		3,871		4,220
Indianapolis Power & Light Co.,
4.700%, 9-1-45 (A)		3,150		3,239
IPALCO Enterprises, Inc.:
3.450%, 7-15-20		2,300		2,289
3.700%, 9-1-24		2,650		2,570
Mississippi Power Co. (3-Month U.S. LIBOR plus 65 bps),
3.031%, 3-27-20 (B)		2,100		2,100
Nevada Power Co.,
2.750%, 4-15-20		1,700		1,695
NextEra Energy Capital Holdings, Inc. (GTD by NextEra Energy, Inc.) (3-Month U.S. LIBOR plus 206.75 bps),
4.405%, 10-1-66 (B)		3,500		3,377
Pennsylvania Electric Co.,
3.250%, 3-15-28 (A)		3,550		3,303
PPL Capital Funding, Inc. (GTD by PPL Corp.) (3-Month LIBOR plus 266.5 bps),
5.051%, 3-30-67 (B)		10,000		9,873
Southern Power Co., Series F,
4.950%, 12-15-46		6,190		6,086
				55,920
Gas Utilities – 1.0%
AGL Capital Corp.,
3.875%, 11-15-25		7,050		6,855
El Paso Natural Gas Co. LLC,
8.375%, 6-15-32 (E)		2,000		2,524
				9,379
Independent Power Producers & Energy Traders – 0.4%
AES Corp. (The),
6.000%, 5-15-26		4,000		4,215

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Multi-Utilities – 1.0%
Dominion Resources, Inc. (3-Month U.S. LIBOR plus 230 bps),
4.686%, 9-30-66 (B)	$	1,423	$	1,373
WEC Energy Group, Inc. (3-Month U.S. LIBOR plus 211.25 bps),
4.426%, 5-15-67 (B)		7,725		7,484
				8,857
Total Utilities – 8.6%				78,371
TOTAL CORPORATE DEBT SECURITIES – 34.6%			$	314,015
(Cost: $316,302)
MORTGAGE-BACKED SECURITIES
Commercial Mortgage-Backed Securities – 7.3%
BAMLL Commercial Mortgage Securities Trust 2014-520M, Class A (Mortgage spread to 10-year U.S. Treasury index),
4.325%, 8-15-46 (A)(B)		4,130		4,154
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2018-TBR, Class A (1-Month U.S. LIBOR plus 83 bps),
2.988%, 12-15-36 (A)(B)		10,000		10,000
Credit Suisse Comm Mortgage Trust, Comm Mortgage Pass-Through Certs, Series 2014-ICE, Class B (Mortgage spread to 10-year U.S. Treasury index),
3.500%, 6-25-47 (A)(B)		4,775		4,504
Credit Suisse Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2014-ICE, Class B,
3.304%, 9-15-37 (A)		1,500		1,472
GS Mortgage Securities Corp. Trust, Commercial Mortgage Pass-Through Certificates, Series 2012-BWTR (Mortgage spread to 5-year U.S. Treasury index),
3.440%, 11-5-34 (A)(B)		1,000		953
Hometown Commercial Trust, Commercial Mortgage-Backed Notes, Series 2007-1,
6.057%, 6-11-39 (A)		6		5
Invitation Homes Trust, Series 2018-SFR1 (1-Month U.S. LIBOR plus 125 bps),
3.408%, 3-17-37 (A)(B)		4,500		4,500
Invitation Homes Trust, Series 2018-SFR3, Class A (1-Month U.S. LIBOR plus 100 bps),
3.158%, 7-17-37 (A)(B)		4,995		4,986
Invitation Homes Trust, Series 2018-SFR3, Class D (1-Month U.S. LIBOR plus 165 bps),
3.808%, 7-17-37 (A)(B)		5,000		5,055

2018 SEMIANNUAL REPORT 103

SCHEDULE OF INVESTMENTS IVY SECURIAN CORE BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

MORTGAGE-BACKED SECURITIES (Continued)	Principal		Value
Commercial Mortgage-Backed Securities (Continued)
JPMorgan Chase Comm Mortgage Securities Trust, Comm Mortgage Pass-Through Certificates, Series 2016-JP3 (10-Year U.S. Treasury index plus 110 bps),
3.648%, 12-15-49 (B)	$	575	$	569
JPMorgan Chase Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2017-JP5,
3.723%, 3-15-50		1,500		1,491
Mellon Residential Funding,
6.750%, 6-25-28		1		1
UBS Commercial Mortgage Trust, Series 2017-C1, Class AS,
3.724%, 6-15-50		8,000		7,799
UBS Commercial Mortgage Trust, Series 2017-C6, Class A5,
3.580%, 12-15-50		7,000		6,856
UBS Commercial Mortgage Trust, Series 2017-C6, Class A5 (Mortgage spread to 10-year U.S. Treasury index),
4.061%, 12-15-50 (B)		2,300		2,290
Vornado DP LLC Trust 2010, Commercial Mortgage Pass-Through Certificates, Series 2010-VNO,
5.280%, 9-13-28 (A)		1,200		1,248
Wells Fargo Commercial Mortgage Trust, Series 2016-BNK1, Class AS,
2.814%, 8-15-49		4,600		4,264
Wells Fargo Commercial Mortgage Trust, Series 2017-SMP (Mortgage spread to 2-year U.S. Treasury index),
2.908%, 12-15-19 (A)(B)		6,050		6,050
				66,197
Other Mortgage-Backed Securities – 9.4%
Agate Bay Mortgage Loan Trust 2015-6, Class B1 (Mortgage spread to 10-year U.S. Treasury index),
3.612%, 9-25-45 (A)(B)		6,547		6,433
Agate Bay Mortgage Loan Trust 2016-1, Class B1 (Mortgage spread to 7-year U.S. Treasury index),
3.786%, 12-25-45 (A)(B)		6,454		6,402
Bear Stearns Mortgage Securities, Inc.,
8.000%, 11-25-29		77		48
Bellemeade Re Ltd., Series 2018-1A, Class M1B (1-Month U.S. LIBOR plus 160 bps),
3.816%, 4-25-28 (A)(B)		5,000		5,025
C-Bass 2006-MH1 Trust (Mortgage spread to 1-year U.S. Treasury index),
6.250%, 10-25-36 (A)(B)		327		327

MORTGAGE-BACKED SECURITIES (Continued)	Principal			Value
Other Mortgage-Backed Securities (Continued)
CHL Mortgage Pass-Through Trust 2004-J4,
5.250%, 5-25-34	$	67		$	65
Citigroup Mortgage Loan Trust, Series 2018-RP1 (3-year U.S. Treasury index plus 60 bps),
3.000%, 9-25-64 (A)(B)		3,657			3,578
CountryPlace Manufactured Housing Contract Trust 2005-1 (Mortgage spread to 3-year U.S. Treasury index),
5.200%, 12-15-35 (A)(B)		223			229
CWHEQ Home Equity Loan Trust, Series 2007-S2 (Mortgage spread to 2-year U.S. Treasury index),
5.934%, 5-25-37 (B)		253			258
Home Partners of America Trust, Series 2018-1, Class A (1-Month U.S. LIBOR plus 90 bps),
3.058%, 7-17-37 (A)(B)		7,175			7,165
JPMorgan Mortgage Trust 2004-A3 (Mortgage spread to 10-year U.S. Treasury index),
4.542%, 7-25-34 (B)		65			66
JPMorgan Mortgage Trust 2006-A2 (Mortgage spread to 7-year U.S. Treasury index),
3.366%, 10-25-46 (A)(B)		2,928			2,696
JPMorgan Mortgage Trust 2013-2, Class B3 (Mortgage spread to 7-year U.S. Treasury index),
3.645%, 5-25-43 (A)(B)		2,748			2,679
JPMorgan Mortgage Trust 2013-2, Class B4 (Mortgage spread to 5-year U.S. Treasury index),
3.645%, 5-25-43 (A)(B)		1,713			1,643
JPMorgan Mortgage Trust 2017-A13 (Mortgage spread to 10-year U.S. Treasury index),
3.500%, 11-25-48 (A)(B)		6,889			6,499
Morgan Stanley BAML Trust, Series 2016-C32,
3.720%, 12-15-49		320			318
Morgan Stanley Capital I Trust 2012-STAR, Class B,
3.451%, 8-5-34 (A)		930			918
Progress Residential Trust, Series 2018-SFR3, Class C,
4.178%, 10-17-35 (A)		5,000			4,969
Prudential Home Mortgage Securities:
6.730%, 4-28-24 (A)		—	*		—	*
7.696%, 9-28-24 (A)		1			1
PSMC Trust, Series 2018-1A (Mortgage spread to 2-year U.S. Treasury index),
3.500%, 2-25-48 (A)(B)		9,492			9,351
RASC, Series 2003-KS10 Trust,
6.410%, 12-25-33		158			106

MORTGAGE-BACKED SECURITIES (Continued)	Principal		Value
Other Mortgage-Backed Securities (Continued)
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1 (Mortgage spread to 3-year U.S. Treasury index),
5.174%, 12-25-30 (B)	$	742	$	46
Sequoia Mortgage Trust 2012-5, Class B2 (Mortgage spread to 3-year U.S. Treasury index),
3.897%, 11-25-42 (B)		4,386		4,330
Sequoia Mortgage Trust 2015-3, Class B1 (Mortgage spread to 7-year U.S. Treasury index),
3.714%, 7-25-45 (A)(B)		3,878		3,803
Shellpoint Co-Originator Trust, Series 2015-1, Class B3 (Mortgage spread to 7-year U.S. Treasury index),
3.825%, 8-25-45 (A)(B)		4,879		4,723
Structured Asset Mortgage Investments, Inc.:
1.049%, 5-2-30		5		1
Towd Point Mortgage Trust, Series 2015-2 (Mortgage spread to 7-year U.S. Treasury index),
4.403%, 11-25-57 (A)(B)		7,050		7,282
Winwater Mortgage Loan Trust 2015-B1 (Mortgage spread to 10-year U.S. Treasury index),
3.795%, 8-20-45 (A)(B)		6,605		6,436
				85,397
TOTAL MORTGAGE-BACKED SECURITIES – 16.7%			$	151,594
(Cost: $156,567)
MUNICIPAL BONDS - TAXABLE
Alabama – 0.4%
Muni Elec Auth of GA, Plant Vogtle Units 3 & 4 Proj M Bonds, Ser 2010A,
6.655%, 4-1-57		3,015		3,578
New York – 0.7%
Port Auth of NY & NJ Consolidated Bonds, 168th Ser,
4.926%, 10-1-51		2,690		3,008
Port Auth of NY & NJ Consolidated Bonds, Ser 174,
4.458%, 10-1-62		3,000		3,121
				6,129
Washington – 0.2%
Pub Util Dist No. 1, Douglas Cnty, WA, Wells Hydroelec Bonds, Ser 2010A,
5.450%, 9-1-40		1,205		1,369
TOTAL MUNICIPAL BONDS - TAXABLE – 1.3%			$	11,076
(Cost: $10,439)

104 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY SECURIAN CORE BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS	Principal		Value
Mortgage-Backed Obligations – 17.0%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO,
5.300%, 1-15-33	$	55	$	59
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 280 bps),
7.016%, 5-25-28 (B)		3,700		4,325
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 380 bps),
6.016%, 3-25-29 (B)		4,000		4,503
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 445 bps),
6.666%, 4-25-30 (B)		1,250		1,379
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 455 bps),
6.766%, 10-25-24 (B)		2,608		2,897
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 515 bps),
7.366%, 11-25-28 (B)		3,110		3,689
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (1-Month U.S. LIBOR plus 95 bps),
3.166%, 10-25-29 (B)		5,700		5,347
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		1,435
Federal Home Loan Mortgage Corp. Agency REMIC/CMO (Mortgage spread to 7-year U.S. Treasury index),
4.000%, 7-25-56 (A)(B)(C)		5,830		5,665
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates:
5.500%, 9-1-19		8		8
5.000%, 4-1-23		118		122
3.500%, 8-1-26		392		394
2.500%, 3-1-28		446		433
2.500%, 4-1-28		398		387
5.000%, 5-1-29		33		35
3.500%, 5-1-32		971		975
6.500%, 9-1-32		28		31
6.000%, 11-1-33		35		39
5.500%, 5-1-34		325		359
6.500%, 5-1-34		90		101
5.500%, 6-1-34		88		95
5.000%, 9-1-34		1		1
5.500%, 9-1-34		3		4
5.500%, 10-1-34		122		133
5.500%, 7-1-35		42		45
5.000%, 8-1-35		37		39
5.500%, 10-1-35		44		48
5.000%, 11-1-35		107		113
5.000%, 12-1-35		22		23
6.500%, 7-1-36		19		21
7.000%, 12-1-37		31		34

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal			Value
Mortgage-Backed Obligations (Continued)
5.500%, 2-1-39	$	210		$	228
5.000%, 11-1-39		99			105
5.000%, 1-1-40		543			578
5.000%, 4-1-40		202			214
5.000%, 8-1-40		169			179
4.000%, 10-1-40		436			444
4.000%, 11-1-40		628			640
4.500%, 1-1-41		461			481
4.000%, 2-1-41		1,087			1,107
4.000%, 3-1-41		359			366
4.500%, 3-1-41		250			261
4.500%, 4-1-41		756			789
4.000%, 6-1-41		397			404
4.000%, 8-1-41		247			252
4.000%, 11-1-41		2,958			3,013
3.500%, 3-1-42		1,474			1,462
3.000%, 8-1-42		950			917
3.500%, 8-1-42		2,423			2,403
3.000%, 1-1-43		1,205			1,163
3.000%, 2-1-43		1,469			1,419
3.500%, 7-1-44		1,778			1,761
3.500%, 12-1-44		3,526			3,484
3.500%, 5-25-45		4,367			4,269
3.500%, 3-1-46		2,013			1,986
3.000%, 10-25-46		1,379			1,309
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 300 bps),
5.216%, 10-25-29 (B)		3,000			3,230
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 365 bps),
5.866%, 9-25-29 (B)		2,350			2,592
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 430 bps),
6.516%, 2-25-25 (B)		2,308			2,546
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 440 bps),
6.616%, 1-25-24 (B)		4,000			4,555
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 445 bps),
6.666%, 1-25-29 (B)		4,000			4,477
Federal National Mortgage Association Agency REMIC/CMO (1-Month U.S. LIBOR plus 550 bps),
7.716%, 9-25-29 (B)		4,650			5,444
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
5.000%, 10-1-18		—	*		—	*
5.500%, 9-1-19		3			3
3.000%, 9-1-22		365			364
5.000%, 7-1-23		68			71

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
6.000%, 8-1-23	$	62	$	64
5.500%, 2-1-24		30		32
4.500%, 4-1-25		105		109
3.500%, 11-1-25		226		228
3.500%, 6-1-26		374		376
2.500%, 11-1-27		751		725
6.000%, 8-1-29		26		29
7.500%, 5-1-31		13		14
7.000%, 9-1-31		5		5
7.000%, 11-1-31		67		75
6.500%, 12-1-31		7		7
6.500%, 2-1-32		68		76
7.000%, 2-1-32		52		59
7.000%, 3-1-32		75		86
6.500%, 4-1-32		12		13
6.500%, 5-1-32		22		24
6.500%, 7-1-32		8		9
6.500%, 8-1-32		12		13
6.000%, 9-1-32		14		16
6.500%, 9-1-32		29		32
6.000%, 10-1-32		234		259
6.500%, 10-1-32		29		32
6.000%, 11-1-32		183		202
3.500%, 12-1-32		1,303		1,308
6.000%, 3-1-33		292		321
5.500%, 4-1-33		243		264
6.000%, 4-1-33		8		8
5.500%, 5-1-33		23		25
6.000%, 6-1-33		66		71
6.500%, 8-1-33		12		13
6.000%, 10-1-33		38		41
6.000%, 12-1-33		59		65
5.500%, 1-1-34		50		54
5.500%, 1-1-34		48		52
6.000%, 1-1-34		30		33
5.000%, 3-1-34		15		16
5.500%, 3-1-34		21		23
5.500%, 4-1-34		17		19
5.000%, 5-1-34		12		12
6.000%, 8-1-34		49		53
5.500%, 9-1-34		154		166
6.000%, 9-1-34		62		68
6.500%, 9-1-34		89		97
5.500%, 11-1-34		181		194
6.000%, 11-1-34		74		80
6.500%, 11-1-34		5		6
5.000%, 12-1-34		276		293
5.500%, 1-1-35		157		170
5.500%, 1-1-35		22		24
5.500%, 2-1-35		406		441
5.500%, 2-1-35		43		46
6.500%, 3-1-35		113		126
5.500%, 4-1-35		103		111
4.500%, 5-1-35		175		182
5.500%, 6-1-35		5		6
4.500%, 7-1-35		153		159
5.000%, 7-1-35		307		326
5.000%, 7-1-35		61		65
5.500%, 7-1-35		47		51
5.500%, 8-1-35		6		6
5.500%, 10-1-35		215		236
5.500%, 11-1-35		102		110

2018 SEMIANNUAL REPORT 105

SCHEDULE OF INVESTMENTS IVY SECURIAN CORE BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
5.000%, 2-1-36	$	28	$	29
5.500%, 2-1-36		35		36
6.500%, 2-1-36		25		28
5.500%, 9-1-36		146		158
5.500%, 11-1-36		57		62
6.000%, 11-1-36		37		40
6.000%, 1-1-37		28		31
6.000%, 5-1-37		73		81
5.500%, 6-1-37		37		41
6.000%, 8-1-37		40		45
7.000%, 10-1-37		16		17
5.500%, 3-1-38		144		160
5.000%, 4-1-38		174		186
6.000%, 10-1-38		117		128
4.500%, 6-1-39		101		106
5.000%, 12-1-39		275		294
5.500%, 12-1-39		154		168
5.000%, 3-1-40		616		655
4.500%, 10-1-40		554		577
4.000%, 12-1-40		743		756
3.500%, 4-1-41		1,429		1,417
4.000%, 4-1-41		956		974
4.500%, 4-1-41		1,426		1,488
5.000%, 4-1-41		143		152
4.500%, 7-1-41		724		753
4.000%, 8-1-41		576		586
4.000%, 9-1-41		894		909
4.000%, 10-1-41		1,019		1,037
3.500%, 11-1-41		2,490		2,470
3.500%, 1-1-42		3,033		3,009
3.500%, 4-1-42		4,404		4,369
3.500%, 8-1-42		1,489		1,477
3.000%, 9-1-42		1,581		1,528
3.500%, 1-1-43		808		802
3.500%, 2-1-43		1,098		1,090
3.000%, 5-1-43		2,151		2,076
4.000%, 1-1-44		915		935
4.000%, 4-1-44		2,418		2,448
3.500%, 5-1-45		2,078		2,054
3.500%, 6-1-45		1,242		1,228
3.500%, 7-1-45		1,423		1,407
3.500%, 8-1-45		1,890		1,867
3.500%, 9-1-45		1,318		1,302
3.000%, 1-1-46		3,092		2,963
4.000%, 2-1-47		861		873
Government National Mortgage Association Agency REMIC/CMO:
0.643%, 7-16-40 (F)		112		—	*
0.013%, 6-17-45 (F)		210		—	*
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
6.250%, 7-15-24		45		47
4.000%, 8-20-31		550		564
5.000%, 7-15-33		111		118

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
5.000%, 7-15-34	$	85	$	90
5.500%, 12-15-34		110		119
5.000%, 1-15-35		116		124
3.250%, 11-20-35		558		551
5.000%, 12-15-35		195		207
4.000%, 6-20-36		912		935
5.500%, 7-15-38		104		112
5.500%, 10-15-38		141		157
5.500%, 2-15-39		35		38
5.000%, 12-15-39		107		114
5.000%, 1-15-40		662		694
4.500%, 6-15-40		327		344
5.000%, 7-15-40		171		179
4.000%, 12-20-40		403		413
4.000%, 1-15-41		492		504
4.000%, 10-15-41		286		292
3.500%, 10-20-43		1,266		1,266
4.000%, 12-20-44		439		450
3.500%, 2-20-45		2,046		2,040
3.000%, 3-15-45		2,727		2,645
3.000%, 3-20-45		1,372		1,334
3.500%, 3-20-45		1,340		1,336
3.500%, 4-20-45		3,013		3,004
3.500%, 4-20-46		963		958
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 2,
7.793%, 2-15-25		10		10
U.S. Dept of Veterans Affairs, Gtd REMIC Pass-Through Certs, Vendee Mortgage Trust 1995-1, Class 1 (Mortgage spread to 3-year U.S. Treasury index),
6.852%, 2-15-25 (B)		36		37
				154,575
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 17.0%			$	154,575
(Cost: $156,302)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 9.0%
U.S. Treasury Bonds:
5.375%, 2-15-31 (G)		4,940		6,105
3.000%, 2-15-48		14,163		13,624
3.125%, 5-15-48		12,575		12,402
U.S. Treasury Notes:
2.250%, 3-31-20		2,000		1,985
1.500%, 6-15-20		630		616
2.625%, 8-31-20		1,200		1,196
2.750%, 8-15-21		4,800		4,782
2.750%, 7-31-23		13,517		13,399

UNITED STATES GOVERNMENT OBLIGATIONS (Continued)	Principal		Value
Treasury Obligations (Continued)
2.750%, 8-31-23	$	9,475	$	9,393
2.000%, 4-30-24		2,015		1,914
2.500%, 1-31-25		4,265		4,143
2.750%, 8-31-25		3,500		3,443
2.875%, 8-15-28 (D)		8,310		8,184
				81,186
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 9.0%			$	81,186
(Cost: $81,510)
SHORT-TERM SECURITIES
Commercial Paper (H) – 1.2%
DTE Electric Co.,
2.321%, 10-3-18		5,000		4,998
Kroger Co. (The),
2.350%, 10-1-18		2,154		2,154
Wisconsin Gas LLC,
2.170%, 10-2-18		4,000		3,999
				11,151
Master Note – 0.1%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (I)		1,217		1,217
Money Market Funds – 0.2%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares,
2.140%, (J)(K)		1,730		1,730
United States Government Agency Obligations – 0.7%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.190%, 10-7-18 (I)		2,000		2,000
2.220%, 10-7-18 (I)		4,000		4,000
				6,000
TOTAL SHORT-TERM SECURITIES – 2.2%			$	20,098
(Cost: $20,100)
TOTAL INVESTMENT SECURITIES – 100.0%			$	907,027
(Cost: $916,671)
LIABILITIES, NET OF CASH AND OTHER ASSETS – 0.0%				(280	)
NET ASSETS – 100.0%			$	906,747

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, 2018 the total value of these securities amounted to $318,789 or 35.2% of net assets.

106 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY SECURIAN CORE BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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) All or a portion of securities with an aggregate value of $3,387 are on loan.

(E) 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, 2018.

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

(G) All or a portion of securities with an aggregate value of $1,038 have been pledged as collateral on open futures contracts.

(H) Rate shown is the yield to maturity at September 30, 2018.

(I) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(J) Investment made with cash collateral received from securities on loan.

(K) Rate shown is the annualized 7-day yield at September 30, 2018.

The following futures contracts were outstanding at September 30, 2018 (contracts unrounded):

Description	Type	Number of Contracts		Expiration Date		Notional Amount		Value			Unrealized Appreciation (Depreciation)
U.S. 30-Year Treasury Bond	Long		562		12-19-18		56,200	$	78,961		$	(2,377	)
U.S. 10-Year Ultra Treasury Note	Short		396		12-28-18		39,600		(49,896	)		924
U.S. Treasury Ultra Long Bond	Short		152		12-28-18		15,200		(23,451	)		875
U.S. 5-Year Treasury Note	Long		867		12-31-18		86,700		97,517			(951	)
								$	103,131		$	(1,529	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	—	$	2,490	$	—
Asset-Backed Securities		—		171,765		228
Corporate Debt Securities		—		314,015		—
Mortgage-Backed Securities		—		151,594		—
Municipal Bonds		—		11,076		—
United States Government Agency Obligations		—		153,140		1,435
United States Government Obligations		—		81,186		—
Short-Term Securities		1,730		18,368		—
Total	$	1,730	$	903,634	$	1,663
Futures Contracts	$	1,799	$	—	$	—
Liabilities
Futures Contracts	$	3,328	$	—	$	—

During the period ended September 30, 2018, securities totaling $2,494 were transferred from Level 1 to Level 2 due to the lack of observable market data due to decreased market activity or information for these securities. Transfers out of Level 1 represent the values as of the beginning of the reporting period.

2018 SEMIANNUAL REPORT 107

SCHEDULE OF INVESTMENTS IVY SECURIAN CORE BOND FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trust

REMIC = Real Estate Mortgage Investment Conduit

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

108 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY SMALL CAP CORE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	95.6%
Information Technology	16.8%
Financials	16.4%
Industrials	14.0%
Health Care	13.0%
Consumer Discretionary	9.3%
Consumer Staples	6.4%
Materials	5.8%
Utilities	4.2%
Telecommunication Services	4.1%
Real Estate	3.3%
Energy	2.3%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	4.4%

Top 10 Equity Holdings

Company	Sector	Industry
Webster Financial Corp.	Financials	Regional Banks
Vonage Holdings Corp.	Telecommunication Services	Alternative Carriers
Post Holdings, Inc.	Consumer Staples	Packaged Foods & Meats
Cabot Corp.	Materials	Commodity Chemicals
Grand Canyon Education, Inc.	Consumer Discretionary	Education Services
Green Dot Corp., Class A	Financials	Consumer Finance
Insulet Corp.	Health Care	Health Care Equipment
Red Rock Resorts, Inc., Class A	Consumer Discretionary	Casinos & Gaming
Evolent Health, Inc., Class A	Health Care	Health Care Technology
Rexnord Corp.	Industrials	Industrial Machinery

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.

2018 SEMIANNUAL REPORT 109

SCHEDULE OF INVESTMENTS IVY SMALL CAP CORE FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel Retail – 2.1%
Boot Barn Holdings, Inc. (A)		564	$	16,029
Apparel, Accessories & Luxury Goods – 0.8%
G-III Apparel Group Ltd. (A)		136		6,534
Auto Parts & Equipment – 0.4%
Visteon Corp. (A)		33		3,080
Casinos & Gaming – 2.8%
Red Rock Resorts, Inc., Class A		810		21,574
Education Services – 3.2%
Grand Canyon Education, Inc. (A)		224		25,295
Total Consumer Discretionary – 9.3%				72,512
Consumer Staples
Packaged Foods & Meats – 6.4%
Nomad Foods Ltd. (A)		910		18,436
Post Holdings, Inc. (A)		317		31,123
				49,559
Total Consumer Staples – 6.4%				49,559
Energy
Oil & Gas Exploration & Production – 2.3%
Laredo Petroleum Holdings, Inc. (A)		2,222		18,156
Total Energy – 2.3%				18,156
Financials
Consumer Finance – 3.2%
Green Dot Corp., Class A (A)		281		24,998
Multi-Line Insurance – 2.3%
Kemper Corp.		220		17,734
Property & Casualty Insurance – 1.6%
Old Republic International Corp.		579		12,967
Regional Banks – 9.3%
Chemical Financial Corp.		341		18,205
Pinnacle Financial Partners, Inc.		136		8,151
Webster Financial Corp.		555		32,710
Western Alliance Bancorp. (A)		235		13,343
				72,409
Total Financials – 16.4%				128,108
Health Care
Health Care Equipment – 5.0%
Insulet Corp. (A)		220		23,314
Invacare Corp.		1,088		15,825
				39,139
Health Care Facilities – 1.8%
HealthSouth Corp.		181		14,093

COMMON STOCKS (Continued)	Shares		Value
Health Care Supplies – 3.2%
ICU Medical, Inc. (A)		50	$	14,025
Sientra, Inc. (A)		450		10,756
				24,781
Health Care Technology – 2.7%
Evolent Health, Inc., Class A (A)		746		21,186
Life Sciences Tools & Services – 0.3%
TECHNE Corp.		10		1,939
Total Health Care – 13.0%				101,138
Industrials
Aerospace & Defense – 2.8%
Cubic Corp.		117		8,570
Curtiss-Wright Corp.		100		13,732
				22,302
Diversified Support Services – 1.6%
Healthcare Services Group, Inc. (B)		306		12,414
Environmental & Facilities Services – 1.1%
Clean Harbors, Inc. (A)		118		8,446
Industrial Machinery – 6.9%
Crane Co.		148		14,516
ITT, Inc.		147		8,999
RBC Bearings, Inc. (A)		77		11,533
Rexnord Corp. (A)		604		18,590
				53,638
Office Services & Supplies – 1.6%
MSA Safety, Inc.		118		12,564
Total Industrials – 14.0%				109,364
Information Technology
Application Software – 4.0%
Everbridge, Inc. (A)		293		16,912
Pluralsight, Inc., Class A (A)		458		14,648
				31,560
Data Processing & Outsourced Services – 1.9%
Cardtronics plc, Class A (A)		218		6,907
EVERTEC, Inc.		328		7,898
				14,805
Electronic Equipment & Instruments – 3.3%
FLIR Systems, Inc.		293		18,017
Novanta, Inc. (A)		110		7,532
				25,549
Internet Software & Services – 1.6%
Q2 Holdings, Inc. (A)		201		12,195
IT Consulting & Other Services – 2.2%
Booz Allen Hamilton Holding Corp.		319		15,807

COMMON STOCKS (Continued)	Shares		Value
IT Consulting & Other Services (Continued)
CACI International, Inc., Class A (A)		6	$	1,050
				16,857
Semiconductor Equipment – 1.1%
Teradyne, Inc.		242		8,934
Systems Software – 1.9%
PROS Holdings, Inc. (A)		414		14,501
Technology Distributors – 0.8%
Avnet, Inc.		143		6,407
Total Information Technology – 16.8%				130,808
Materials
Aluminum – 0.7%
Constellium N.V., Class A (A)		464		5,734
Commodity Chemicals – 5.1%
Cabot Corp.		468		29,364
Orion Engineered Carbons S.A.		313		10,051
				39,415
Total Materials – 5.8%				45,149
Real Estate
Hotel & Resort REITs – 0.4%
RLJ Lodging Trust		128		2,813
Industrial REITs – 1.4%
STAG Industrial, Inc.		394		10,827
Retail REITs – 1.5%
Agree Realty Corp.		224		11,923
Total Real Estate – 3.3%				25,563
Telecommunication Services
Alternative Carriers – 4.1%
Vonage Holdings Corp. (A)		2,284		32,337
Total Telecommunication Services – 4.1%				32,337
Utilities
Electric Utilities – 1.9%
ALLETE, Inc.		123		9,204
IDACORP, Inc.		61		6,023
				15,227
Gas Utilities – 1.1%
ONE Gas, Inc.		101		8,290
Water Utilities – 1.2%
Aqua America, Inc.		260		9,581
Total Utilities – 4.2%				33,098
TOTAL COMMON STOCKS – 95.6%			$	745,792
(Cost: $626,592)

110 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY SMALL CAP CORE FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (C) – 1.0%
Diageo Capital plc (GTD by Diageo plc),
2.870%, 10-11-18	$	2,002	$	2,000
Mondelez International, Inc.,
2.280%, 10-1-18		3,574		3,573
Sonoco Products Co.,
2.330%, 10-1-18		1,981		1,981
				7,554
Master Note – 0.6%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (D)		4,480		4,480

SHORT-TERM SECURITIES (Continued)	Principal		Value
Money Market Funds – 0.5%
Dreyfus Institutional Preferred Government Money Market Fund - Institutional Shares, 2.140%, (E)(F)	$	3,633	$	3,633
United States Government Agency Obligations – 3.3%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.220%, 10-7-18 (D)		26,000		26,000
				26,000

	Value
TOTAL SHORT-TERM SECURITIES – 5.4%	$	41,667
(Cost: $41,669)
TOTAL INVESTMENT SECURITIES – 101.0%	$	787,459
(Cost: $668,261)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.0)%		(7,727	)
NET ASSETS – 100.0%	$	779,732

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 $5,101 are on loan.

(C) Rate shown is the yield to maturity at September 30, 2018.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(E) Investment made with cash collateral received from securities on loan.

(F) Rate shown is the annualized 7-day yield at September 30, 2018.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	745,792	$	—	$	—
Short-Term Securities		3,633		38,034		—
Total	$	749,425	$	38,034	$	—

During the period ended September 30, 2018, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

BVAL = Bloomberg Valuation Municipal AAA Benchmark

FHLMC = Federal Home Loan Mortgage Corp.

FNMA = Federal National Mortgage Association

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

REIT = Real Estate Investment Trust

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 111

PORTFOLIO HIGHLIGHTS IVY SMALL CAP GROWTH FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	92.9%
Information Technology	25.1%
Health Care	23.3%
Consumer Discretionary	20.5%
Industrials	13.3%
Financials	5.8%
Energy	3.6%
Consumer Staples	1.0%
Real Estate	0.3%
Purchased Options	0.0%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	7.1%

Top 10 Equity Holdings

Company	Sector	Industry
Teladoc Health, Inc.	Health Care	Health Care Services
AMN Healthcare Services, Inc.	Health Care	Health Care Services
Proofpoint, Inc.	Information Technology	Systems Software
Mercury Computer Systems, Inc.	Industrials	Aerospace & Defense
John Bean Technologies Corp.	Industrials	Industrial Machinery
Texas Roadhouse, Inc., Class A	Consumer Discretionary	Restaurants
Paycom Software, Inc.	Information Technology	Application Software
Wingstop, Inc.	Consumer Discretionary	Restaurants
HealthEquity, Inc.	Health Care	Managed Health Care
Grand Canyon Education, Inc.	Consumer Discretionary	Education Services

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

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

112 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel Retail – 3.4%
Burlington Stores, Inc. (A)		105	$	17,041
Caleres, Inc.		148		5,297
Children’s Place Retail Stores, Inc. (The)		206		26,263
Urban Outfitters, Inc. (A)		971		39,698
				88,299
Auto Parts & Equipment – 1.1%
Visteon Corp. (A)		314		29,192
Automotive Retail – 0.6%
Carvana Co. (A)(B)		282		16,646
Broadcasting – 1.1%
Nexstar Broadcasting Group, Inc.		361		29,394
Casinos & Gaming – 0.8%
PlayAGS, Inc. (A)		657		19,371
Distributors – 1.5%
Pool Corp.		236		39,415
Education Services – 1.7%
Grand Canyon Education, Inc. (A)		393		44,305
General Merchandise Stores – 1.6%
Ollie’s Bargain Outlet Holdings, Inc. (A)		424		40,737
Homebuilding – 0.9%
Installed Building Products, Inc. (A)		571		22,282
Homefurnishing Retail – 1.1%
At Home Group, Inc. (A)		875		27,592
Hotels, Resorts & Cruise Lines – 1.2%
Hilton Grand Vacations, Inc. (A)		965		31,948
Internet & Direct Marketing Retail – 0.7%
Etsy, Inc. (A)		260		13,343
Farfetch Ltd., Class A (A)		134		3,638
				16,981
Restaurants – 3.7%
Texas Roadhouse, Inc., Class A		739		51,231
Wingstop, Inc.		659		44,998
				96,229
Specialty Stores – 1.1%
Five Below, Inc. (A)		228		29,654
Total Consumer Discretionary – 20.5%				532,045
Consumer Staples
Food Retail – 1.0%
Sprouts Farmers Market, Inc. (A)		942		25,828
Total Consumer Staples – 1.0%				25,828

COMMON STOCKS (Continued)	Shares		Value
Energy
Oil & Gas Equipment & Services – 0.1%
Keane Group, Inc. (A)		304	$	3,759
Oil & Gas Exploration & Production – 3.5%
Centennial Resource Development, Inc., Class A (A)		1,399		30,560
Magnolia Oil & Gas Corp. (A)		353		5,295
Matador Resources Co. (A)		615		20,339
Petroleum Development Corp. (A)		280		13,694
WildHorse Resource Development Corp. (A)		862		20,376
				90,264
Total Energy – 3.6%				94,023
Financials
Investment Banking & Brokerage – 2.4%
Evercore Partners, Inc.		342		34,398
LPL Investment Holdings, Inc.		419		27,030
				61,428
Regional Banks – 3.4%
Ameris Bancorp		435		19,870
Heritage Financial Corp.		451		15,835
Seacoast Banking Corp. of Florida (A)		600		17,533
Western Alliance Bancorp. (A)		646		36,734
				89,972
Total Financials – 5.8%				151,400
Health Care
Biotechnology – 0.4%
Immunomedics, Inc. (A)		487		10,134
Health Care Equipment – 9.2%
Inogen, Inc. (A)		136		33,202
Insulet Corp. (A)		186		19,685
iRhythm Technologies, Inc. (A)		341		32,276
K2M Group Holdings, Inc. (A)		1,520		41,593
NovoCure Ltd. (A)		762		39,942
Penumbra, Inc. (A)		221		33,028
Tactile Systems Technology, Inc. (A)		550		39,099
				238,825
Health Care Facilities – 1.0%
Acadia Healthcare Co., Inc. (A)(B)		715		25,161
Health Care Services – 7.2%
AMN Healthcare Services, Inc. (A)		1,301		71,149
LHC Group, Inc. (A)		387		39,837
Teladoc Health, Inc. (A)		881		76,062
				187,048
Health Care Supplies – 2.2%
Merit Medical Systems, Inc. (A)		581		35,694
Sientra, Inc. (A)		886		21,152
				56,846

COMMON STOCKS (Continued)	Shares		Value
Health Care Technology – 0.4%
Evolent Health, Inc., Class A (A)		362	$	10,275
Managed Health Care – 1.7%
HealthEquity, Inc. (A)		474		44,794
Pharmaceuticals – 1.2%
Aerie Pharmaceuticals, Inc. (A)		370		22,749
OptiNose, Inc. (A)(B)		675		8,396
				31,145
Total Health Care – 23.3%				604,228
Industrials
Aerospace & Defense – 2.1%
Mercury Computer Systems, Inc. (A)		996		55,126
Air Freight & Logistics – 0.6%
Air Transport Services Group, Inc. (A)		677		14,542
Diversified Support Services – 0.9%
Healthcare Services Group, Inc. (B)		609		24,729
Industrial Machinery – 6.6%
Crane Co.		67		6,599
John Bean Technologies Corp.		436		52,051
RBC Bearings, Inc. (A)		250		37,541
Timken Co. (The)		715		35,653
Woodward, Inc.		497		40,212
				172,056
Security & Alarm Services – 1.2%
Brink’s Co. (The)		435		30,324
Trading Companies & Distributors – 0.7%
Watsco, Inc.		107		19,077
Trucking – 1.2%
Knight Transportation, Inc.		868		29,931
Total Industrials – 13.3%				345,785
Information Technology
Application Software – 7.2%
Globant S.A. (A)		421		24,823
HubSpot, Inc. (A)		285		42,991
Paycom Software, Inc. (A)		325		50,508
Pluralsight, Inc., Class A (A)		393		12,579
SVMK, Inc. (A)		131		2,104
Ultimate Software Group, Inc. (The) (A)		46		14,961
Zendesk, Inc. (A)		571		40,534
				188,500
Communications Equipment – 0.6%
Viavi Solutions, Inc. (A)		1,439		16,314
Internet Software & Services – 7.1%
Apptio, Inc., Class A (A)		517		19,090

2018 SEMIANNUAL REPORT 113

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

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Internet Software & Services (Continued)
Criteo S.A. ADR (A)		237	$	5,446
Envestnet, Inc. (A)		398		24,252
Five9, Inc. (A)		817		35,699
Mimecast Ltd. (A)		667		27,913
New Relic, Inc. (A)		305		28,740
Q2 Holdings, Inc. (A)		480		29,076
SendGrid, Inc. (A)		362		13,300
				183,516
IT Consulting & Other Services – 3.2%
Booz Allen Hamilton Holding Corp.		873		43,347
InterXion Holding N.V. (A)		582		39,175
				82,522
Semiconductors – 2.8%
Integrated Device Technology, Inc. (A)		687		32,315
Monolithic Power Systems, Inc.		319		39,981
				72,296
Systems Software – 4.1%
Proofpoint, Inc. (A)		548		58,248
Varonis Systems, Inc. (A)		584		42,765
Zscaler, Inc. (A)(B)		148		6,029
				107,042
Technology Hardware, Storage & Peripherals – 0.1%
USA Technologies, Inc. (A)		437		3,146
Total Information Technology – 25.1%				653,336
Real Estate
Real Estate Services – 0.3%
RE/MAX Holdings, Inc., Class A		182		8,089
Total Real Estate – 0.3%				8,089
TOTAL COMMON STOCKS – 92.9%			$	2,414,734
(Cost: $1,641,215)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Notional Amount
Monolithic Power Systems, Inc.,
Put $120.00, Expires 12-21-18, OTC (Ctrpty: JPMorgan Chase Bank N.A.)		1,343		134		597
TOTAL PURCHASED OPTIONS – 0.0%					$	597
(Cost: $588)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper (C) – 1.7%
Brown-Forman Corp.,
1.930%, 10-11-18	$	5,000	$	4,996
Mondelez International, Inc.,
2.280%, 10-1-18		3,739		3,738
Northern Illinois Gas Co.,
2.200%, 10-12-18		3,000		2,997
Rockwell Automation, Inc.,
2.100%, 10-2-18		5,000		4,999
Walgreens Boots Alliance, Inc.,
2.850%, 10-12-18		5,000		4,995
Wisconsin Electric Power Co.,
2.250%, 10-4-18		15,000		14,994
Wisconsin Gas LLC,
2.170%, 10-2-18		8,000		7,998
				44,717
Master Note – 0.2%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (D)		3,941		3,941
Money Market Funds – 0.9%
Dreyfus Institutional Preferred Government Money Market Fund – Institutional Shares,
2.140%, (E)(F)		22,957		22,957
Municipal Obligations – 1.3%
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by FNMA) (BVAL plus 10 bps),
1.550%, 10-7-18 (D)		6,725		6,725
LA Pub Fac Auth, Rev Bonds (Air Products and Chemicals Proj), Ser 2009A (GTD by Air Products and Chemicals, Inc.) (BVAL plus 24 bps),
1.590%, 10-7-18 (D)		4,000		4,000
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),
1.590%, 10-7-18 (D)		6,005		6,005
Minneapolis, MN, Hsng Dev, Rfdg Rev Bonds (One Ten Grant Proj), Ser 1989 (GTD by FNMA) (BVAL plus 8 bps),
1.580%, 10-7-18 (D)		7,750		7,750

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
NY Hsng Fin Agy, Related-Caroline Apt Hsng Rev Bonds, Ser 2008A (GTD by FHLMC) (BVAL plus 17 bps),
1.610%, 10-7-18 (D)	$	4,900	$	4,900
SC Pub Svc Auth, Rev Commercial Paper Notes, Ser DD (GTD by Bank of America N.A.),
2.330%, 10-17-18		3,000		3,000
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),
1.550%, 10-2-18 (D)		1,800		1,800
				34,180
United States Government Agency Obligations – 3.9%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.170%, 10-7-18 (D)		4,968		4,967
2.190%, 10-7-18 (D)		35,570		35,570
2.220%, 10-7-18 (D)		60,681		60,681
				101,218
TOTAL SHORT-TERM SECURITIES – 8.0%			$	207,013
(Cost: $207,023)
TOTAL INVESTMENT SECURITIES – 100.9%			$	2,622,344
(Cost: $1,848,826)
LIABILITIES, NET OF CASH AND OTHER ASSETS (G) – (0.9)%				(23,621	)
NET ASSETS – 100.0%			$	2,598,723

114 SEMIANNUAL REPORT 2018

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

SEPTEMBER 30, 2018 (UNAUDITED)

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) All or a portion of securities with an aggregate value of $38,093 are on loan.

(C) Rate shown is the yield to maturity at September 30, 2018.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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.

(E) Investment made with cash collateral received from securities on loan.

(F) Rate shown is the annualized 7-day yield at September 30, 2018.

(G) Cash of $1,920 has been pledged as collateral on open OTC swap agreements.

The following total return swap agreements were outstanding at September 30, 2018:

Underlying Security	Counterparty	Maturity Date		Notional Amount		Financing Fee(1)(2)		Value			Upfront Payments/ (Receipts)		Unrealized Depreciation
Biotech Custom Index	Goldman Sachs International		07/01/2019	$	78,442		1-Month LIBOR less 15 bps	$	(1,742	)	$	—	$	(1,742	)

(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 receive payments on any net positive total return, and would owe payments in the event of a negative total return.

The following table represents security positions within the total return basket swap as of September 30, 2018:

Reference Entity	Shares			Notional Amount		Value			% of Value
Ligand Pharmaceuticals, Inc.		—	*	$	3,218	$	(71	)		4.1	%
FibroGen, Inc.		1			2,557		(57	)		3.3
Loxo Oncology, Inc.		—	*		2,539		(56	)		3.2
Ultragenyx Pharmaceutical, Inc.		1			2,000		(44	)		2.6
Horizon Pharma plc		2			1,809		(40	)		2.3
Blueprint Medicines Corp.		1			1,802		(40	)		2.3
Array BioPharma, Inc.		3			1,744		(39	)		2.2
Emergent BioSolutions, Inc.		1			1,638		(36	)		2.1
Intercept Pharmaceuticals, Inc.		—	*		1,528		(34	)		1.9
Myriad Genetics, Inc.		1			1,483		(33	)		1.9
Ironwood Pharmaceuticals, Inc.		2			1,447		(32	)		1.8
Immunomedics, Inc.		1			1,379		(31	)		1.8
Supernus Pharmaceuticals, Inc.		1			1,375		(31	)		1.8
Amicus Therapeutics, Inc.		2			1,291		(29	)		1.7
Halozyme Therapeutics, Inc.		2			1,255		(28	)		1.6
Aerie Pharmaceuticals, Inc.		—	*		1,230		(27	)		1.6
Repligen Corp.		—	*		1,227		(27	)		1.6
REGENXBIO, Inc.		—	*		1,214		(27	)		1.6
PTC Therapeutics, Inc.		1			1,194		(27	)		1.5
MyoKardia, Inc.		—	*		1,130		(25	)		1.4
Momenta Pharmaceuticals, Inc.		1			1,127		(25	)		1.4
Heron Therapeutics, Inc.		1			1,122		(25	)		1.4
Pacira Pharmaceuticals, Inc.		—	*		1,098		(24	)		1.4
Global Blood Therapeutics, Inc.		1			1,084		(24	)		1.4
Amneal Pharmaceuticals, Inc.		1			1,073		(24	)		1.4
Medicines Co. (The)		1			1,053		(23	)		1.3

Reference Entity	Shares			Notional Amount		Value			% of Value
AnaptysBio, Inc.		—	*	$	1,044	$	(23	)		1.3	%
ACADIA Pharmaceuticals, Inc.		1			1,041		(23	)		1.3
Arena Pharmaceuticals, Inc.		—	*		1,021		(23	)		1.3
Xencor, Inc.		1			994		(22	)		1.3
Spark Therapeutics, Inc.		—	*		962		(21	)		1.2
Sangamo Therapeutics, Inc.		1			956		(21	)		1.2
Atara Biotherapeutics, Inc.		1			946		(21	)		1.2
Arrowhead Pharmaceuticals, Inc.		1			931		(21	)		1.2
Portola Pharmaceuticals, Inc.		1			899		(20	)		1.2
Spectrum Pharmaceuticals, Inc.		1			870		(19	)		1.1
Insmed, Inc.		1			862		(19	)		1.1
Editas Medicine, Inc.		1			810		(18	)		1.0
Genomic Health, Inc.		—	*		804		(18	)		1.0
Acceleron Pharma, Inc.		—	*		792		(18	)		1.0
Enanta Pharmaceuticals, Inc.		—	*		791		(18	)		1.0
Clovis Oncology, Inc.		1			783		(17	)		1.0
Theravance Biopharma, Inc.		1			773		(17	)		1.0
Corcept Therapeutics, Inc.		1			772		(17	)		1.0
Puma Biotechnology, Inc.		—	*		737		(16	)		0.9
Zogenix, Inc.		—	*		730		(16	)		0.9
Reata Pharmaceuticals, Inc.		—	*		727		(16	)		0.9
ImmunoGen, Inc.		2			700		(16	)		0.9
Madrigal Pharmaceuticals, Inc.		—	*		696		(15	)		0.9
Aimmune Therapeutics, Inc.		1			664		(15	)		0.9
Audentes Therapeutics, Inc.		—	*		664		(15	)		0.8

2018 SEMIANNUAL REPORT 115

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

SEPTEMBER 30, 2018 (UNAUDITED)

Reference Entity	Shares			Notional Amount		Value			% of Value
Vanda Pharmaceuticals, Inc.		1		$	658	$	(15	)		0.8	%
Omeros Corp.		1			630		(14	)		0.8
Intrexon Corp.		1			630		(14	)		0.8
Retrophin, Inc.		—	*		626		(14	)		0.8
TherapeuticsMD, Inc.		2			616		(14	)		0.8
G1 Therapeutics, Inc.		—	*		599		(13	)		0.8
Innoviva, Inc.		1			597		(13	)		0.8
Endocyte, Inc.		1			590		(13	)		0.8
Biohaven Pharmaceutical Holding Co. Ltd.		—	*		575		(13	)		0.7
Esperion Therapeutics, Inc.		—	*		574		(13	)		0.7
Cambrex Corp.		—	*		547		(12	)		0.7
Intellia Therapeutics, Inc.		—	*		530		(12	)		0.7
Iovance Biotherapeutics, Inc.		1			518		(12	)		0.7
WaVe Life Sciences Ltd.		—	*		499		(11	)		0.6
Codexis, Inc.		1			487		(11	)		0.6
Mirati Therapeutics, Inc.		—	*		484		(11	)		0.6
MacroGenics, Inc.		—	*		470		(10	)		0.6
Phibro Animal Health Corp.		—	*		458		(10	)		0.6
Revance Therapeutics, Inc.		—	*		454		(10	)		0.6
Fate Therapeutics, Inc.		1			443		(10	)		0.6
Alder Biopharmaceuticals, Inc.		1			432		(10	)		0.6

Reference Entity	Shares			Notional Amount		Value			% of Value
Heska Corp.		—	*	$	428	$	(10	)		0.5	%
Coherus Biosciences, Inc.		1			427		(10	)		0.5
Karyopharm Therapeutics, Inc.		1			419		(9	)		0.5
Eagle Pharmaceuticals, Inc.		—	*		405		(9	)		0.5
CytomX Therapeutics, Inc.		—	*		402		(9	)		0.5
Radius Health, Inc.		1			401		(9	)		0.5
Dynavax Technologies Corp.		1			389		(9	)		0.5
MiMedx Group, Inc.		1			364		(8	)		0.5
Apellis Pharmaceuticals, Inc.		—	*		361		(8	)		0.5
Athenex, Inc.		1			360		(8	)		0.5
Assembly Biosciences, Inc.		—	*		360		(8	)		0.5
Flexion Therapeutics, Inc.		—	*		351		(8	)		0.4
Accelerate Diagnostics, Inc.		—	*		335		(7	)		0.4
Cymabay Therapeutics, Inc.		1			282		(6	)		0.4
Progenics Pharmaceuticals, Inc.		1			263		(6	)		0.3
La Jolla Pharmaceutical Co.		—	*		246		(5	)		0.3
Collegium Pharmaceutical, Inc.		—	*		246		(5	)		0.3
Sorrento Therapeutics, Inc.		1			215		(5	)		0.3
TG Therapeutics, Inc.		1			185		(4	)		0.2
						$	(1,742	)

The following written options were outstanding at September 30, 2018 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Notional Amount		Expiration Month	Exercise Price		Premium Received		Value
Monolithic Power Systems, Inc.	JPMorgan Chase Bank N.A.	Put		1,343		135	December 2018	$	100.00	$	81	$	(128	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	2,414,734	$	—	$	—
Purchased Options		—		597		—
Short-Term Securities		22,957		184,056		—
Total	$	2,437,691	$	184,653	$	—
Liabilities
Total Return Swaps	$	—	$	1,742	$	—
Written Options	$	—	$	128	$	—

During the period ended September 30, 2018, 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

FHLMC = Federal Home Loan Mortgage Corp.

GTD = Guaranteed

LIBOR = London Interbank Offered Rate

OTC = Over the Counter

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

116 SEMIANNUAL REPORT 2018

PORTFOLIO HIGHLIGHTS IVY TAX-MANAGED EQUITY FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	99.5%
Information Technology	44.8%
Consumer Discretionary	18.1%
Industrials	12.9%
Health Care	11.5%
Financials	5.2%
Consumer Staples	4.4%
Energy	1.4%
Real Estate	1.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	0.5%

Top 10 Equity Holdings

Company	Sector	Industry
Microsoft Corp.	Information Technology	Systems Software
Amazon.com, Inc.	Consumer Discretionary	Internet & Direct Marketing Retail
Apple, Inc.	Information Technology	Technology Hardware, Storage & Peripherals
salesforce.com, Inc.	Information Technology	Application Software
Alphabet, Inc., Class A	Information Technology	Internet Software & Services
Verisk Analytics, Inc., Class A	Industrials	Research & Consulting Services
Adobe Systems, Inc.	Information Technology	Application Software
Visa, Inc., Class A	Information Technology	Data Processing & Outsourced Services
CME Group, Inc.	Financials	Financial Exchanges & Data
MasterCard, Inc., Class A	Information Technology	Data Processing & Outsourced Services

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

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

2018 SEMIANNUAL REPORT 117

SCHEDULE OF INVESTMENTS IVY TAX-MANAGED EQUITY FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Apparel, Accessories & Luxury Goods – 2.7%
V.F. Corp.		191	$	17,868
Cable & Satellite – 1.4%
Comcast Corp., Class A		254		8,991
Footwear – 2.8%
NIKE, Inc., Class B		218		18,460
Home Improvement Retail – 3.0%
Home Depot, Inc. (The)		96		19,803
Internet & Direct Marketing Retail – 8.2%
Amazon.com, Inc. (A)		25		49,488
Booking Holdings, Inc. (A)		2		4,470
				53,958
Total Consumer Discretionary – 18.1%				119,080
Consumer Staples
Distillers & Vintners – 0.9%
Constellation Brands, Inc.		27		5,854
Personal Products – 1.3%
Estee Lauder Co., Inc. (The), Class A		60		8,782
Soft Drinks – 1.9%
Monster Beverage Corp. (A)		219		12,760
Tobacco – 0.3%
Philip Morris International, Inc.		23		1,874
Total Consumer Staples – 4.4%				29,270
Energy
Oil & Gas Equipment & Services – 1.4%
Halliburton Co.		223		9,056
Total Energy – 1.4%				9,056
Financials
Financial Exchanges & Data – 4.8%
CME Group, Inc.		135		23,030
S&P Global, Inc.		42		8,294
				31,324
Investment Banking & Brokerage – 0.4%
Goldman Sachs Group, Inc. (The)		13		2,971
Total Financials – 5.2%				34,295

COMMON STOCKS (Continued)	Shares		Value
Health Care
Biotechnology – 1.6%
Alexion Pharmaceuticals, Inc. (A)		26	$	3,629
BioMarin Pharmaceutical, Inc. (A)		75		7,224
				10,853
Health Care Equipment – 5.2%
Danaher Corp.		187		20,303
Intuitive Surgical, Inc. (A)		24		13,747
				34,050
Managed Health Care – 2.8%
UnitedHealth Group, Inc.		69		18,277
Pharmaceuticals – 1.9%
Elanco Animal Health, Inc. (A)		19		669
Pfizer, Inc.		267		11,760
				12,429
Total Health Care – 11.5%				75,609
Industrials
Aerospace & Defense – 1.4%
Raytheon Co.		46		9,434
Construction Machinery & Heavy Trucks – 2.1%
Caterpillar, Inc.		93		14,105
Industrial Machinery – 2.2%
Stanley Black & Decker, Inc.		99		14,461
Railroads – 0.6%
Union Pacific Corp.		22		3,663
Research & Consulting Services – 4.0%
Verisk Analytics, Inc., Class A (A)		221		26,686
Trucking – 2.6%
J.B. Hunt Transport Services, Inc.		141		16,819
Total Industrials – 12.9%				85,168
Information Technology
Application Software – 8.6%
Adobe Systems, Inc. (A)		95		25,666
salesforce.com, Inc. (A)		193		30,713
				56,379
Data Processing & Outsourced Services – 11.4%
FleetCor Technologies, Inc. (A)		59		13,419
MasterCard, Inc., Class A		95		21,151
PayPal, Inc. (A)		189		16,593
Visa, Inc., Class A		159		23,909
				75,072

COMMON STOCKS (Continued)	Shares		Value
Home Entertainment Software – 2.2%
Electronic Arts, Inc. (A)		118	$	14,242
Internet Software & Services – 5.8%
Alphabet, Inc., Class A (A)		24		28,579
Facebook, Inc., Class A (A)		60		9,851
				38,430
Systems Software – 11.0%
Microsoft Corp.		571		65,294
Red Hat, Inc. (A)		55		7,427
				72,721
Technology Hardware, Storage & Peripherals – 5.8%
Apple, Inc.		168		37,864
Total Information Technology – 44.8%				294,708
Real Estate
Specialized REITs – 1.2%
American Tower Corp., Class A		53		7,715
Total Real Estate – 1.2%				7,715
TOTAL COMMON STOCKS – 99.5%			$	654,901
(Cost: $352,580)
SHORT-TERM SECURITIES	Principal
Master Note – 0.6%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (B)	$	4,052		4,052
TOTAL SHORT-TERM SECURITIES – 0.6%			$	4,052
(Cost: $4,052)
TOTAL INVESTMENT SECURITIES – 100.1%			$	658,953
(Cost: $356,632)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)%				(678	)
NET ASSETS – 100.0%			$	658,275

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, 2018. 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.

118 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY TAX-MANAGED EQUITY FUND (in thousands)

SEPTEMBER 30, 2018 (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, 2018. 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	$	654,901	$	—	$	—
Short-Term Securities		—		4,052		—
Total	$	654,901	$	4,052	$	—

During the period ended September 30, 2018, 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.

2018 SEMIANNUAL REPORT 119

PORTFOLIO HIGHLIGHTS IVY VALUE FUND

ALL DATA IS AS OF SEPTEMBER 30, 2018 (UNAUDITED)

Asset Allocation

Stocks	97.2%
Financials	31.3%
Consumer Discretionary	13.1%
Health Care	11.3%
Information Technology	10.1%
Energy	8.8%
Consumer Staples	7.8%
Industrials	6.7%
Materials	3.4%
Utilities	2.5%
Real Estate	2.2%
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+	2.8%

Top 10 Equity Holdings

Company	Sector	Industry
Citigroup, Inc.	Financials	Other Diversified Financial Services
JPMorgan Chase & Co.	Financials	Other Diversified Financial Services
Wal-Mart Stores, Inc.	Consumer Staples	Hypermarkets & Super Centers
CVS Caremark Corp.	Consumer Staples	Drug Retail
Energy Transfer Partners L.P.	Energy	Oil & Gas Storage & Transportation
Dow Chemical Co. (The)	Materials	Diversified Chemicals
Capital One Financial Corp.	Financials	Consumer Finance
Pfizer, Inc.	Health Care	Pharmaceuticals
Broadcom Corp., Class A	Information Technology	Semiconductors
Target Corp.	Consumer Discretionary	General Merchandise 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.

120 SEMIANNUAL REPORT 2018

SCHEDULE OF INVESTMENTS IVY VALUE FUND (in thousands)

SEPTEMBER 30, 2018 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Discretionary
Auto Parts & Equipment – 2.4%
Magna International, Inc.		560	$	29,396
Cable & Satellite – 2.7%
Comcast Corp., Class A		938		33,200
General Merchandise Stores – 5.3%
Dollar Tree, Inc. (A)		345		28,135
Target Corp.		414		36,475
				64,610
Home Improvement Retail – 2.7%
Lowe’s Co., Inc.		284		32,597
Total Consumer Discretionary – 13.1%				159,803
Consumer Staples
Drug Retail – 3.8%
CVS Caremark Corp.		594		46,744
Hypermarkets & Super Centers – 4.0%
Wal-Mart Stores, Inc.		514		48,270
Total Consumer Staples – 7.8%				95,014
Energy
Oil & Gas Refining & Marketing – 4.4%
EnLink Midstream Partners L.P.		998		18,599
Marathon Petroleum Corp.		442		35,354
				53,953
Oil & Gas Storage & Transportation – 4.4%
Energy Transfer Equity L.P.		680		11,844
Energy Transfer Partners L.P.		1,905		42,394
				54,238
Total Energy – 8.8%				108,191
Financials
Asset Management & Custody Banks – 5.3%
Blackstone Group L.P. (The)		851		32,406
State Street Corp.		383		32,063
				64,469
Consumer Finance – 5.7%
Capital One Financial Corp.		408		38,760
Synchrony Financial		1,007		31,307
				70,067
Life & Health Insurance – 2.8%
MetLife, Inc.		733		34,227
Mortgage REITs – 2.9%
American Capital Agency Corp.		1,933		36,004
Other Diversified Financial Services – 9.3%
Citigroup, Inc.		828		59,408
JPMorgan Chase & Co.		485		54,761
				114,169

COMMON STOCKS (Continued)	Shares		Value
Property & Casualty Insurance – 2.8%
Allstate Corp. (The)		345	$	34,022
Regional Banks – 2.5%
KeyCorp		1,538		30,589
Total Financials – 31.3%				383,547
Health Care
Biotechnology – 2.7%
Amgen, Inc.		158		32,752
Health Care Facilities – 2.7%
HCA Holdings, Inc.		240		33,361
Managed Health Care – 2.8%
Humana, Inc.		101		34,021
Pharmaceuticals – 3.1%
Pfizer, Inc.		869		38,306
Total Health Care – 11.3%				138,440
Industrials
Aerospace & Defense – 1.3%
Spirit AeroSystems Holdings, Inc.		172		15,804
Airlines – 2.6%
Southwest Airlines Co.		515		32,174
Electrical Components & Equipment – 2.8%
Eaton Corp.		391		33,894
Total Industrials – 6.7%				81,872
Information Technology
Semiconductor Equipment – 2.2%
Lam Research Corp.		176		26,760
Semiconductors – 5.6%
Broadcom Corp., Class A		149		36,788
Micron Technology, Inc. (A)		419		18,951
QUALCOMM, Inc.		182		13,088
				68,827
Systems Software – 2.3%
Microsoft Corp.		247		28,249
Total Information Technology – 10.1%				123,836
Materials
Diversified Chemicals – 3.4%
Dow Chemical Co. (The)		654		42,078
Total Materials – 3.4%				42,078
Real Estate
Health Care REITs – 2.2%
Welltower, Inc.		421		27,098
Total Real Estate – 2.2%				27,098

COMMON STOCKS (Continued)	Shares		Value
Utilities
Electric Utilities – 2.5%
Great Plains Energy, Inc.		554	$	30,403
Total Utilities – 2.5%				30,403
TOTAL COMMON STOCKS – 97.2%			$	1,190,282
(Cost: $900,554)
SHORT-TERM SECURITIES	Principal
Commercial Paper (B) – 1.8%
Diageo Capital plc (GTD by Diageo plc),
2.870%, 10-11-18	$	5,000		4,996
Mondelez International, Inc.,
2.280%, 10-1-18		3,363		3,362
NBCUniversal Enterprise, Inc.,
2.880%, 10-11-18		4,000		3,997
Northern Illinois Gas Co.,
2.401%, 10-3-18		5,000		4,998
Virginia Electric and Power Co.,
2.730%, 10-18-18		2,500		2,497
Walgreens Boots Alliance, Inc.,
2.720%, 10-18-18		2,000		1,997
				21,847
Master Note – 0.3%
Toyota Motor Credit Corp. (1-Month U.S. LIBOR plus 15 bps),
2.470%, 10-5-18 (C)		3,463		3,463
United States Government Agency Obligations – 0.8%
Overseas Private Investment Corp. (GTD by U.S. Government) (3-Month U.S. TB Rate):
2.220%, 10-7-18 (C)		9,500		9,500
TOTAL SHORT-TERM SECURITIES – 2.9%			$	34,810
(Cost: $34,814)
TOTAL INVESTMENT SECURITIES – 100.1%			$	1,225,092
(Cost: $935,368)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)%				(1,437	)
NET ASSETS – 100.0%			$	1,223,655

2018 SEMIANNUAL REPORT 121

SCHEDULE OF INVESTMENTS IVY VALUE FUND (in thousands)

SEPTEMBER 30, 2018 (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, 2018.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2018. 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, 2018 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type		Number of Contracts		Notional Amount		Expiration Month		Exercise Price		Premium Received		Value
CVS Health Corp.	N/A		Call		470		47		October 2018	$	82.50	$	43	$	(24	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2018. 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	$	1,190,282	$	—	$	—
Short-Term Securities		—		34,810		—
Total	$	1,190,282	$	34,810	$	—
Liabilities
Written Options	$	—	$	24	$	—

During the period ended September 30, 2018, there were no transfers between Level 1 and 2.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

LIBOR = London Inberbank Offered Rate

REIT = Real Estate Investment Trust

TB = Treasury Bill

See Accompanying Notes to Financial Statements.

122 SEMIANNUAL REPORT 2018

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Core Equity Fund		Ivy Emerging Markets Equity Fund(1)			Ivy European Opportunities Fund		Ivy Global Bond Fund			Ivy Global Equity Income Fund		Ivy Global Growth Fund		Ivy Global Income Allocation Fund
ASSETS
Investments in unaffiliated securities at value+^	$	4,804,761	$	2,163,362		$	158,866	$	498,881		$	997,949	$	1,053,707	$	546,983
Investments at Value		4,804,761		2,163,362			158,866		498,881			997,949		1,053,707		546,983
Cash		1		344			46		1			2		—		202
Cash denominated in foreign currencies at value+		—		83			35		—			8,808		—		5,682
Restricted cash		—		48			—		—			—		—		—
Investment securities sold receivable		23,361		5,983			—		3,094			—		6,580		—
Dividends and interest receivable		2,615		1,824			467		6,063			2,804		1,881		5,912
Capital shares sold receivable		1,531		4,874			86		175			347		2,119		62
Receivable from affiliates		67		734			—		517			68		43		3
Unrealized appreciation on forward foreign currency contracts		870		—			—		—			—		—		246
Receivable from securities lending income – net		48		23			6		7			32		8		15
Prepaid and other assets		214		188			60		78			91		107		77
Total Assets		4,833,468		2,177,463			159,566		508,816			1,010,101		1,064,445		559,182
LIABILITIES
Cash collateral on securities loaned at value		84,167		11,838			6,159		2,847			30,830		—		7,193
Investment securities purchased payable		56		3,196			—		3,185			—		10,520		—
Capital shares redeemed payable		9,117		6,267			455		888			2,324		1,437		1,066
Independent Trustees and Chief Compliance Officer fees payable		1,470		91			66		128			122		310		51
Overdraft due to custodian		—		—			—		—			—		1,783		—
Distribution and service fees payable		75		16			2		6			12		12		6
Shareholder servicing payable		629		403			45		116			212		204		125
Investment management fee payable		239		154			11		26			56		73		32
Accounting services fee payable		23		23			7		12			23		21		14
Other liabilities		40		2,176			21		71			37		127		28
Total Liabilities		95,816		24,164			6,766		7,279			33,616		14,487		8,515
Total Net Assets	$	4,737,652	$	2,153,299		$	152,800	$	501,537		$	976,485	$	1,049,958	$	550,667
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	3,032,019	$	2,113,017		$	119,170	$	579,624		$	753,960	$	703,139	$	559,621
Undistributed net investment income		14,778		18,600			2,955		2,033			2,592		1,806		147
Accumulated net realized gain (loss)		411,974		(190,005	)		970		(53,502	)		97,978		62,919		(35,446	)
Net unrealized appreciation (depreciation)		1,278,881		211,687			29,705		(26,618	)		121,955		282,094		26,345
Total Net Assets	$	4,737,652	$	2,153,299		$	152,800	$	501,537		$	976,485	$	1,049,958	$	550,667
CAPITAL SHARES OUTSTANDING:
Class A		200,248		19,756			2,207		24,088			32,353		10,458		11,838
Class B		737		201			14		166			456		31		136
Class C		4,573		4,877			98		1,048			1,975		239		1,632
Class E		897		15			3		N/A			415		3		214
Class I		68,830		72,240			1,959		26,028			33,175		9,237		21,137
Class N		3,131		14,179			351		1,004			1,035		396		695
Class R		86		868			18		77			55		34		19
Class T		N/A		14			N/A		N/A			N/A		N/A		N/A
Class Y		3,873		2,742			23		136			620		135		64
NET ASSET VALUE PER SHARE:
Class A		$16.32		$18.36			$32.56		$9.55			$13.93		$50.71		$15.34
Class B		$13.41		$14.96			$29.71		$9.54			$13.92		$42.64		$15.03
Class C		$13.96		$15.71			$30.59		$9.54			$13.92		$43.13		$15.13
Class E		$16.24		$18.67			$32.85		N/A			$13.93		$51.14		$15.34
Class I		$18.22		$19.00			$32.92		$9.54			$13.94		$51.82		$15.47
Class N		$18.27		$19.11			$33.08		$9.55			$13.95		$52.14		$15.48
Class R		$16.17		$18.17			$32.48		$9.53			$13.94		$50.24		$15.33
Class T		N/A		$18.41			N/A		N/A			N/A		N/A		N/A
Class Y		$17.71		$18.73			$32.83		$9.55			$13.93		$50.96		$15.41
+COST
Investments in unaffiliated securities at cost	$	3,526,750	$	1,949,583		$	129,161	$	525,481		$	875,979	$	771,487	$	520,889
Cash denominated in foreign currencies at cost		—		84			35		—			8,808		—		5,682
^Securities loaned at value		82,008		36,431			5,865		2,786			35,758		13,613		8,043

(1) Consolidated Statement of Assets and Liabilities (See Note 5 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 123

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands, except per share amounts)	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
ASSETS
Investments in unaffiliated securities at value+^	$	153,327	$	5,522,570		$	6,824,707	$	3,994,216		$	1,295,117		$	269	$	223,348
Investments in affiliated securities at value+		—		121,482			—		—			—			198,317		—
Investments at Value		153,327		5,644,052			6,824,707		3,994,216			1,295,117			198,586		223,348
Cash		959		24,313			—		1			1			1		2
Cash denominated in foreign currencies at value+		—		—			88,384		—			—			—		—
Restricted cash		—		160			67		—			—			—		—
Investment securities sold receivable		—		17,249			35,715		—			24			95		1,181
Dividends and interest receivable		327		87,390			28,879		1,055			8,855			1		24
Capital shares sold receivable		2,020		9,396			12,313		3,020			1,709			240		393
Receivable from affiliates		2		22			1,008		380			2			17		—
Unrealized appreciation on forward foreign currency contracts		—		79			—		—			—			—		—
Receivable from securities lending income – net		—		42			156		—	*		—	*		—		16
Prepaid and other assets		65		309			281		191			104			67		54
Total Assets		156,700		5,783,012			6,991,510		3,998,863			1,305,812			199,007		225,018
LIABILITIES
Cash collateral on securities loaned at value		—		22,763			6,869		—			5			—		14,352
Investment securities purchased payable		—		131,212			27,824		—			—			—		2,138
Capital shares redeemed payable		2,624		22,074			7,229		7,999			1,998			248		715
Distributions payable		20		3,061			—		—			245			—		—
Independent Trustees and Chief Compliance Officer fees payable		26		572			191		610			97			16		7
Overdraft due to custodian		—		—			8,162		—			—			—		—
Distribution and service fees payable		1		121			44		50			12			2		3
Shareholder servicing payable		47		969			954		609			209			23		47
Investment management fee payable		5		242			429		205			49			1		16
Accounting services fee payable		6		23			23		23			23			4		6
Swap agreements, at value		—		—			65		—			—			—		—
Other liabilities		25		202			251		45			29			9		14
Total Liabilities		2,754		181,239			52,041		9,541			2,667			303		17,298
Total Net Assets	$	153,946	$	5,601,773		$	6,939,469	$	3,989,322		$	1,303,145		$	198,704	$	207,720
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	153,945	$	6,746,227		$	6,157,451	$	1,822,530		$	1,346,588		$	168,179	$	111,088
Undistributed (distributions in excess of) net investment income		—		—			119,236		235			(350	)		166		(1,435	)
Accumulated net realized gain (loss)		1		(1,046,486	)		363,669		436,101			(28,936	)		3,615		10,030
Net unrealized appreciation (depreciation)		—		(97,968	)		299,113		1,730,456			(14,157	)		26,744		88,037
Total Net Assets	$	153,946	$	5,601,773		$	6,939,469	$	3,989,322		$	1,303,145		$	198,704	$	207,720
CAPITAL SHARES OUTSTANDING:
Class A		124,269		282,693			30,486		74,152			36,034			6,646		3,094
Class B		1,697		6,995			320		509			406			43		43
Class C		13,502		103,487			12,158		3,864			4,101			249		255
Class E		6,174		1,244			411		749			407			46		N/A
Class I		N/A		293,824			202,348		64,388			65,815			10,001		2,527
Class N		8,303		11,982			79,252		4,179			15,242			27		153
Class R		N/A		8,710			5,968		884			50			65		20
Class T		N/A		37			12		N/A			N/A			N/A		N/A
Class Y		N/A		41,406			21,590		1,521			934			52		42
NET ASSET VALUE PER SHARE:
Class A		$1.00		$7.47			$19.61		$26.06			$10.60			$11.56		$33.49
Class B		$1.00		$7.47			$17.32		$20.00			$10.60			$11.25		$30.99
Class C		$1.00		$7.47			$17.39		$21.63			$10.60			$11.29		$31.58
Class E		$1.00		$7.47			$19.74		$26.02			$10.60			$11.58		N/A
Class I		N/A		$7.47			$19.77		$27.42			$10.60			$11.64		$34.53
Class N		$1.00		$7.47			$19.84		$27.56			$10.60			$11.65		$34.83
Class R		N/A		$7.47			$19.57		$25.03			$10.60			$11.52		$33.20
Class T		N/A		$7.47			$19.66		N/A			N/A			N/A		N/A
Class Y		N/A		$7.47			$19.75		$26.74			$10.60			$11.57		$34.70
+COST
Investments in unaffiliated securities at cost	$	153,327	$	5,621,187		$	6,517,072	$	2,263,760		$	1,309,274		$	269	$	135,311
Investments in affiliated securities at cost		—		120,910			—		—			—			171,572		—
Cash denominated in foreign currencies at cost		—		—			96,486		—			—			—		—
^Securities loaned at value		—		36,865			6,541		—			5			—		14,553

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

124 SEMIANNUAL REPORT 2018

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Mid Cap Growth Fund			Ivy Mid Cap Income Opportunities Fund		Ivy Municipal Bond Fund			Ivy Municipal High Income Fund			Ivy Pzena International Value Fund(1)			Ivy Securian Core Bond Fund(2)			Ivy Small Cap Core Fund
ASSETS
Investments in unaffiliated securities at value+^	$	4,815,148		$	417,586	$	827,451		$	1,256,026		$	303,268		$	907,027		$	787,459
Investments in affiliated securities at value+		—			—		—			49			—			—			—
Investments at Value		4,815,148			417,586		827,451			1,256,075			303,268			907,027			787,459
Cash		1			1		—	*		1			1			1			22
Cash denominated in foreign currencies at value+		—			—		—			—			39			—			—
Restricted cash		—			—		364			—			—			—			—
Investment securities sold receivable		10,228			—		—			—			215			895			4,796
Dividends and interest receivable		731			601		10,914			21,655			1,175			5,760			324
Capital shares sold receivable		7,989			1,584		573			748			191			1,590			2,054
Receivable from affiliates		886			87		222			135			—			631			169
Receivable from securities lending income – net		162			15		—			—			4			1			1
Variation margin receivable		—			—		23			—			—			100			—
Prepaid and other assets		206			89		98			91			62			106			100
Total Assets		4,835,351			419,963		839,645			1,278,705			304,955			916,111			794,925
LIABILITIES
Cash collateral on securities loaned at value		53,029			10,419		—			—			186			1,730			3,633
Investment securities purchased payable		—			—		9,122			2,008			432			5,934			7,284
Capital shares redeemed payable		7,167			563		2,389			3,489			393			1,027			3,978
Distributions payable		—			—		229			459			—			255			—
Independent Trustees and Chief Compliance Officer fees payable		505			6		220			193			102			81			38
Distribution and service fees payable		65			4		12			25			2			5			9
Shareholder servicing payable		823			66		91			145			66			156			153
Investment management fee payable		314			28		35			52			20			38			55
Accounting services fee payable		23			11		18			23			9			19			19
Variation margin payable		—			—		—			—			—			88			—
Written options at value+		126			—		—			—			—			—			—
Other liabilities		56			17		18			25			22			31			24
Total Liabilities		62,108			11,114		12,134			6,419			1,232			9,364			15,193
Total Net Assets	$	4,773,243		$	408,849	$	827,511		$	1,272,286		$	303,723		$	906,747		$	779,732
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	2,746,603		$	317,015	$	789,354		$	1,322,932		$	271,068		$	926,067		$	568,976
Undistributed (distributions in excess of) net investment income		(22,643	)		1,070		300			2,653			1,567			(474	)		(1,177	)
Accumulated net realized gain (loss)		363,680			5,408		(7,919	)		(43,377	)		31,670			(7,673	)		92,735
Net unrealized appreciation (depreciation)		1,685,603			85,356		45,776			(9,922	)		(582	)		(11,173	)		119,198
Total Net Assets	$	4,773,243		$	408,849	$	827,511		$	1,272,286		$	303,723		$	906,747		$	779,732
CAPITAL SHARES OUTSTANDING:
Class A		63,523			7,432		42,142			136,873			4,900			16,844			9,495
Class B		902			N/A		132			1,429			24			240			155
Class C		9,694			817		1,800			24,442			146			1,235			2,182
Class E		446			204		N/A			N/A			N/A			335			10
Class I		69,677			14,494		27,367			89,552			5,687			53,759			18,449
Class N		10,910			3,685		48			139			5,358			14,074			2,888
Class R		2,450			206		N/A			N/A			19			115			793
Class T		N/A			N/A		N/A			N/A			N/A			N/A			14
Class Y		9,618			594		50			1,606			110			453			1,094
NET ASSET VALUE PER SHARE:
Class A		$27.70			$14.89		$11.57			$5.01			$18.38			$10.42			$21.29
Class B		$21.98			N/A		$11.57			$5.01			$16.48			$10.42			$17.14
Class C		$23.52			$14.83		$11.57			$5.01			$17.23			$10.42			$18.34
Class E		$27.02			$14.90		N/A			N/A			N/A			$10.42			$22.17
Class I		$29.87			$14.91		$11.57			$5.01			$18.83			$10.42			$23.08
Class N		$30.11			$14.92		$11.57			$5.01			$18.89			$10.42			$23.29
Class R		$26.97			$14.87		N/A			N/A			$18.34			$10.42			$21.14
Class T		N/A			N/A		N/A			N/A			N/A			N/A			$21.36
Class Y		$28.94			$14.89		$11.57			$5.01			$18.65			$10.42			$22.36
+COST
Investments in unaffiliated securities at cost	$	3,129,608		$	332,230	$	782,206		$	1,265,997		$	303,742		$	916,671		$	668,261
Cash denominated in foreign currencies at cost		—			—		—			—			39			—			—
Written options premiums received at cost		189			—		—			—			—			—			—
^Securities loaned at value		112,093			10,210		—			—			4,298			3,387			5,101

* Not shown due to rounding.

(1) Effective April 30, 2018, the Fund’s name changed from Ivy Cundill Global Value Fund to Ivy Pzena International Value Fund.

(2) Effective April 30, 2018, the Fund’s name changed from Ivy Advantus Bond Fund to Ivy Securian Core Bond Fund.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 125

STATEMENTS OF ASSETS AND LIABILITIES IVY FUNDS

AS OF SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Small Cap Growth Fund			Ivy Tax- Managed Equity Fund			Ivy Value Fund
ASSETS
Investments in unaffiliated securities at value+^	$	2,622,344		$	658,953		$	1,225,092
Investments at Value		2,622,344			658,953			1,225,092
Cash		1,576			1			—	*
Restricted cash		1,920			—			—
Investment securities sold receivable		9,547			—			2,528
Dividends and interest receivable		574			149			765
Capital shares sold receivable		5,242			272			767
Receivable from affiliates		222			—	*		—
Receivable from securities lending income – net		64			—			—
Prepaid and other assets		150			62			89
Total Assets		2,641,639			659,437			1,229,241
LIABILITIES
Cash collateral on securities loaned at value		22,957			—			—
Investment securities purchased payable		13,175			—			3,643
Capital shares redeemed payable		3,825			979			1,434
Independent Trustees and Chief Compliance Officer fees payable		381			37			154
Distribution and service fees payable		39			8			10
Shareholder servicing payable		452			70			202
Investment management fee payable		177			35			70
Accounting services fee payable		23			15			25
Swap agreements, at value		1,742			—			—
Written options at value+		128			—			24
Other liabilities		17			18			24
Total Liabilities		42,916			1,162			5,586
Total Net Assets	$	2,598,723		$	658,275		$	1,223,655
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	1,522,949		$	326,340		$	891,399
Undistributed net investment income		(2,886	)		(28	)		6,003
Accumulated net realized gain		306,922			29,642			36,510
Net unrealized appreciation		771,738			302,321			289,743
Total Net Assets	$	2,598,723		$	658,275		$	1,223,655
CAPITAL SHARES OUTSTANDING:
Class A		53,342			11,335			15,419
Class B		582			69			93
Class C		6,002			401			731
Class E		526			N/A			8
Class I		33,545			10,400			25,433
Class N		5,541			19			6,258
Class R		3,342			N/A			14
Class T		14			N/A			N/A
Class Y		6,493			27			25
NET ASSET VALUE PER SHARE:
Class A		$21.37			$29.44			$25.44
Class B		$15.47			$27.90			$23.49
Class C		$17.11			$27.76			$24.47
Class E		$21.17			N/A			$25.55
Class I		$27.98			$29.82			$25.55
Class N		$28.16			$29.88			$25.62
Class R		$20.92			N/A			$25.40
Class T		$21.39			N/A			N/A
Class Y		$26.38			$29.49			$25.49
+COST
Investments in unaffiliated securities at cost	$	1,848,826		$	356,632		$	935,368
Written options premiums received at cost		81			—			43
^Securities loaned at value		38,093			—			—

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

126 SEMIANNUAL REPORT 2018

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands)	Ivy Core Equity Fund			Ivy Emerging Markets Equity Fund(1)			Ivy European Opportunities Fund			Ivy Global Bond Fund			Ivy Global Equity Income Fund			Ivy Global Growth Fund			Ivy Global Income Allocation Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	35,141		$	34,779		$	4,331		$	149		$	21,687		$	8,322		$	9,897
Foreign dividend withholding tax		(716	)		(3,957	)		(435	)		—			(1,336	)		(555	)		(593	)
Interest and amortization from unaffiliated securities		1,315			367			30			10,963			114			194			8,160
Foreign interest withholding tax		—			—	*		—			—	*		—			—			—
Securities lending income — net		142			191			44			16			112			21			101
Total Investment Income		35,882			31,380			3,970			11,128			20,577			7,982			17,565
EXPENSES
Investment management fee		14,468			10,647			966			1,663			3,596			4,337			2,106
Distribution and service fees:
Class A		4,051			574			96			312			591			633			239
Class B		53			19			3			9			36			8			11
Class C		349			429			17			57			175			53			137
Class E		18			—	*		—	*		N/A			8			—	*		4
Class R		4			44			2			2			2			5			1
Class T		N/A			—	*		N/A			N/A			N/A			N/A			N/A
Class Y		74			74			1			3			11			10			2
Shareholder servicing:
Class A		1,960			578			125			339			528			546			211
Class B		23			8			1			5			11			5			4
Class C		68			70			3			13			28			12			12
Class E		23			—	*		—	*		N/A			16			—	*		7
Class I		1,016			1,281			57			213			460			378			295
Class N		4			26			3			1			—	*		1			1
Class R		2			23			1			1			1			2			—	*
Class T		N/A			—	*		N/A			N/A			N/A			N/A			N/A
Class Y		45			49			1			2			7			7			1
Registration fees		75			136			52			57			60			61			51
Custodian fees		48			243			10			15			43			39			28
Independent Trustees and Chief Compliance Officer fees		246			54			6			25			31			47			13
Accounting services fee		138			125			46			76			143			139			87
Professional fees		44			46			24			39			31			30			33
Other		189			135			57			33			119			104			69
Total Expenses		22,898			14,561			1,471			2,865			5,897			6,417			3,312
Less:
Expenses in excess of limit		(67	)		(734	)		—			(517	)		(91	)		(94	)		(3	)
Total Net Expenses		22,831			13,827			1,471			2,348			5,806			6,323			3,309
Net Investment Income		13,051			17,553			2,499			8,780			14,771			1,659			14,256
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		282,014			(79,855	)		11,086			(5,478	)		13,180			52,356			14,549
Swap agreements		—			—			285			—			—			—			—
Forward foreign currency contracts		8,303			—			558			—			647			—			2,209
Foreign currency exchange transactions		10			(428	)		(61	)		17			(212	)		24			(24	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		162,819			(350,972	)		(13,796	)		(4,719	)		(7,018	)		28,911			(9,487	)
Forward foreign currency contracts		748			—			(10	)		—			(12	)		—			203
Foreign currency exchange transactions		—			(78	)		(1	)		(23	)		(39	)		(99	)		(31	)
Net Realized and Unrealized Gain (Loss)		453,894			(431,333	)		(1,939	)		(10,203	)		6,546			81,192			7,419
Net Increase (Decrease) in Net Assets Resulting from Operations	$	466,945		$	(413,780	)	$	560		$	(1,423	)	$	21,317		$	82,851		$	21,675

* Not shown due to rounding.

(1) Consolidated Statement of Operations (See Note 5 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 127

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands)	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
INVESTMENT INCOME
Dividends from unaffiliated securities	$	—		$	2,746		$	141,106		$	18,462		$	139		$	—		$	186
Dividends from affiliated securities		—			603			—			—			—			582			—
Foreign dividend withholding tax		—			—			(13,516	)		(100	)		—			—			—
Interest and amortization from unaffiliated securities		1,575			207,036			1,584			483			17,732			4			116
Interest and amortization from affiliated securities		—			2,193			—			—			—			—			—
Foreign interest withholding tax		—			—			(14	)		—			—			—			—
Securities lending income – net		—			139			1,547			—	*		1			—			50
Total Investment Income		1,575			212,717			130,707			18,845			17,872			586			352
EXPENSES
Investment management fee		280			14,793			26,991			12,040			2,946			55			876
Distribution and service fees:
Class A		—			2,703			811			2,322			507			100			115
Class B		11			289			32			53			25			3			6
Class C		79			3,995			1,150			418			245			15			36
Class E		—			12			10			22			5			1			N/A
Class R		N/A			162			296			56			2			2			2
Class T		N/A			—	*		—	*		N/A			N/A			N/A			N/A
Class Y		N/A			399			575			49			13			1			2
Shareholder servicing:
Class A		190			1,582			699			1,325			317			35			110
Class B		2			48			9			18			6			1			3
Class C		5			396			123			60			35			2			8
Class E		7			21			19			25			6			—	*		N/A
Class I		N/A			1,760			3,288			1,369			583			15			69
Class N		1			4			90			6			6			—	*		1
Class R		N/A			82			149			28			1			—	*		1
Class T		N/A			—	*		—	*		N/A			N/A			N/A			N/A
Class Y		N/A			254			364			31			8			—	*		1
Registration fees		46			124			137			76			69			53			49
Custodian fees		6			8			427			25			6			3			4
Independent Trustees and Chief Compliance Officer fees		4			158			152			127			25			5			3
Accounting services fee		35			139			140			138			138			28			37
Professional fees		10			175			69			42			23			14			14
Other		37			304			285			223			63			18			48
Total Expenses		713			27,408			35,816			18,453			5,029			351			1,385
Less:
Expenses in excess of limit		(2	)		(28	)		(1,009	)		(435	)		(2	)		(17	)		—
Total Net Expenses		711			27,380			34,807			18,018			5,027			334			1,385
Net Investment Income (Loss)		864			185,337			95,900			827			12,845			252			(1,033	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		—	*		(139,836	)		256,643			321,738			(8,838	)		—			5,726
Investments in affiliated securities		—			12			—			—			—			7,743			—
Swap agreements		—			—			—	*		—			—			—			—
Forward foreign currency contracts		—			1,050			—			—			—			—			—
Foreign currency exchange transactions		—			(64	)		(1,494	)		—			—			—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		—			118,161			(463,526	)		214,546			3,338			—			38,759
Investments in affiliated securities		—			496			—			—			—			(13,531	)		—
Swap agreements		—			—			(65	)		—			—			—			—
Forward foreign currency contracts		—			68			—			—			—			—			—
Foreign currency exchange transactions		—			(5	)		(9,057	)		—			—			—			—
Net Realized and Unrealized Gain (Loss)		—			(20,118	)		(217,499	)		536,284			(5,500	)		(5,788	)		44,485
Net Increase (Decrease) in Net Assets Resulting from Operations	$	864		$	165,219		$	(121,599	)	$	537,111		$	7,345		$	(5,536	)	$	43,452

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

128 SEMIANNUAL REPORT 2018

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands)	Ivy Mid Cap Growth Fund			Ivy Mid Cap Income Opportunities Fund			Ivy Municipal Bond Fund			Ivy Municipal High Income Fund			Ivy Pzena International Value Fund(1)			Ivy Securian Core Bond Fund(2)			Ivy Small Cap Core Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	14,587		$	5,147		$	18		$	—		$	2,884		$	195		$	2,881
Foreign dividend withholding tax		—			—			—			—			(169	)		—			(18	)
Interest and amortization from unaffiliated securities		797			79			18,103			35,919			50			18,345			283
Interest and amortization from affiliated securities		—			—			—			126			—			—			—
Securities lending income – net		298			147			—			—			27			2			9
Total Investment Income		15,682			5,373			18,121			36,045			2,792			18,542			3,155
EXPENSES
Investment management fee		17,943			1,548			2,193			3,342			1,050			2,440			3,043
Distribution and service fees:
Class A		2,101			132			636			884			118			235			250
Class B		98			N/A			9			41			2			14			14
Class C		1,091			57			115			663			14			71			190
Class E		14			4			N/A			N/A			N/A			5			—	*
Class R		144			7			N/A			N/A			1			4			35
Class T		N/A			N/A			N/A			N/A			N/A			N/A			—	*
Class Y		334			8			1			12			3			6			27
Shareholder servicing:
Class A		1,456			106			196			264			158			231			246
Class B		27			N/A			2			1			3			4			5
Class C		130			11			16			53			2			10			30
Class E		22			—	*		N/A			N/A			N/A			8			—	*
Class I		1,628			162			253			388			74			452			326
Class N		17			3			—	*		—	*		1			10			6
Class R		73			4			N/A			N/A			1			2			17
Class T		N/A			N/A			N/A			N/A			N/A			N/A			—	*
Class Y		206			5			—	*		8			2			4			18
Registration fees		94			52			48			53			48			79			75
Custodian fees		25			9			8			9			8			6			9
Independent Trustees and Chief Compliance Officer fees		130			7			40			47			5			20			14
Accounting services fee		138			60			111			137			42			119			99
Professional fees		42			18			27			40			41			36			24
Other		310			22			30			70			25			45			37
Total Expenses		26,023			2,215			3,685			6,012			1,598			3,801			4,465
Less:
Expenses in excess of limit		(938	)		(87	)		(221	)		(162	)		(191	)		(632	)		(169	)
Total Net Expenses		25,085			2,128			3,464			5,850			1,407			3,169			4,296
Net Investment Income (Loss)		(9,403	)		3,245			14,657			30,195			1,385			15,373			(1,141	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		159,777			626			3,312			9,576			33,034			(3,028	)		48,989
Investments in affiliated securities		—			—			—			2,548			—			—			—
Futures contracts		—			—			(588	)		—			—			857			(28	)
Written options		348			—			—			—			—			—			—
Foreign currency exchange transactions		(4	)		—			—			—			(65	)		—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		486,138			27,364			(14,043	)		(21,989	)		(30,799	)		(8,662	)		55,344
Investments in affiliated securities		—			—			—			(1,050	)		—			—			—
Futures contracts		—			—			1,242			—			—			(2,166	)		—
Written options		63			—			—			—			—			—			—
Foreign currency exchange transactions		—			—			—			—			(36	)		—			—
Net Realized and Unrealized Gain (Loss)		646,322			27,990			(10,077	)		(10,915	)		2,134			(12,999	)		104,305
Net Increase in Net Assets Resulting from Operations	$	636,919		$	31,235		$	4,580		$	19,280		$	3,519		$	2,374		$	103,164

* Not shown due to rounding.

(1) Effective April 30, 2018, the Fund’s name changed from Ivy Cundill Global Value Fund to Ivy Pzena International Value Fund.

(2) Effective April 30, 2018, the Fund’s name changed from Ivy Advantus Bond Fund to Ivy Securian Core Bond Fund.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 129

STATEMENTS OF OPERATIONS IVY FUNDS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED)

(In thousands)	Ivy Small Cap Growth Fund			Ivy Tax- Managed Equity Fund			Ivy Value Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	4,368		$	2,911		$	14,028
Foreign dividend withholding tax		—			—			(53	)
Interest and amortization from unaffiliated securities		1,473			58			355
Securities lending income – net		274			—			—
Total Investment Income		6,115			2,969			14,330
EXPENSES
Investment management fee		10,022			2,039			4,216
Distribution and service fees:
Class A		1,362			399			497
Class B		48			10			12
Class C		533			54			90
Class E		13			N/A			—	*
Class R		160			N/A			1
Class T		—	*		N/A			N/A
Class Y		199			1			1
Shareholder servicing:
Class A		1,074			117			428
Class B		21			1			6
Class C		86			10			18
Class E		21			N/A			—	*
Class I		707			236			518
Class N		7			—	*		9
Class R		80			N/A			1
Class T		—	*		N/A			N/A
Class Y		124			—	*		1
Registration fees		68			44			63
Custodian fees		10			6			10
Independent Trustees and Chief Compliance Officer fees		72			16			40
Accounting services fee		130			86			138
Professional fees		36			21			29
Other		171			65			68
Total Expenses		14,944			3,105			6,146
Less:
Expenses in excess of limit		(226	)		—	*		—
Total Net Expenses		14,718			3,105			6,146
Net Investment Income (Loss)		(8,603	)		(136	)		8,184
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		215,921			11,423			44,059
Written options		—			—			778
Swap agreements		1,623			—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		111,252			74,033			60,886
Written options		(47	)		—			19
Swap agreements		4,348			—			—
Net Realized and Unrealized Gain		333,097			85,456			105,742
Net Increase in Net Assets Resulting from Operations	$	324,494		$	85,320		$	113,926

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

130 SEMIANNUAL REPORT 2018

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Core Equity Fund						Ivy Emerging Markets Equity Fund(1)						Ivy European Opportunities Fund
(In thousands)	Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	13,051		$	10,345		$	17,553		$	5,708		$	2,499		$	2,929
Net realized gain (loss) on investments		290,327			226,758			(80,283	)		1,835			11,868			11,824
Net change in unrealized appreciation (depreciation)		163,567			142,458			(351,050	)		371,985			(13,807	)		16,598
Net Increase (Decrease) in Net Assets Resulting from Operations		466,945			379,561			(413,780	)		379,528			560			31,351
Distributions to Shareholders From:
Net investment income:
Class A		—			(4,143	)		—			(17	)		—			(779	)
Class B		—			—			—			—			—			(2	)
Class C		—			—			—			—			—			(40	)
Class E		—			(25	)		—			—	*		—			(2	)
Class I		—			(2,790	)		—			(3,703	)		—			(940	)
Class N		—			(517	)		—			(752	)		—			(1,565	)
Class R		—			—			—			—			—			(6	)
Class T		N/A			N/A			—			—	*		N/A			N/A
Class Y		—			(215	)		—			(32	)		—			(11	)
Net realized gains:
Class A		—			(56,244	)		—			—			—			—
Class B		—			(551	)		—			—			—			—
Class C		—			(8,219	)		—			—			—			—
Class E		—			(794	)		—			—			—			—
Class I		—			(29,845	)		—			—			—			—
Class N		—			(5,930	)		—			—			—			—
Class R		—			(164	)		—			—			—			—
Class T		N/A			N/A			—			—			N/A			N/A
Class Y		—			(3,144	)		—			—			—			—
Total Distributions to Shareholders		—			(112,581	)		—			(4,504	)		—			(3,345	)
Capital Share Transactions		(312,617	)		3,348,066			(189,186	)		1,532,717			(98,032	)		42,932
Net Increase (Decrease) in Net Assets		154,328			3,615,046			(602,966	)		1,907,741			(97,472	)		70,938
Net Assets, Beginning of Period		4,583,324			968,278			2,756,265			848,524			250,272			179,334
Net Assets, End of Period	$	4,737,652		$	4,583,324		$	2,153,299		$	2,756,265		$	152,800		$	250,272
Undistributed net investment income	$	14,778		$	1,717		$	18,600		$	1,475		$	2,955		$	517

* Not shown due to rounding.

(1) Consolidated Statements of Changes in Net Assets (See Note 5 in Notes to Financial Statements).

See Accompanying Notes to Financial Statements.

2018 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 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	8,780		$	11,896		$	14,771		$	10,128		$	1,659		$	2,315
Net realized gain (loss) on investments		(5,461	)		3,305			13,615			111,503			52,380			40,238
Net change in unrealized appreciation (depreciation)		(4,742	)		(13,205	)		(7,069	)		(100,458	)		28,812			5,651
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,423	)		1,996			21,317			21,173			82,851			48,204
Distributions to Shareholders From:
Net investment income:
Class A		(2,809	)		(3,416	)		(6,391	)		(1,590	)		—			(153	)
Class B		(15	)		(33	)		(60	)		(33	)		—			—
Class C		(88	)		(230	)		(294	)		(218	)		—			—
Class E		N/A			N/A			(87	)		(2	)		—			—	*
Class I		(3,240	)		(4,349	)		(7,295	)		(6,211	)		—			(844	)
Class N		(185	)		(293	)		(74	)		(56	)		—			(97	)
Class R		(7	)		(12	)		(9	)		(7	)		—			—
Class Y		(20	)		(63	)		(122	)		(108	)		—			(18	)
Net realized gains:
Class A		—			—			—			—			—			(8,306	)
Class B		—			—			—			—			—			(119	)
Class C		—			—			—			—			—			(1,912	)
Class E		N/A			N/A			—			—			—			(10	)
Class I		—			—			—			—			—			(17,316	)
Class N		—			—			—			—			—			(1,492	)
Class R		—			—			—			—			—			(133	)
Class Y		—			—			—			—			—			(716	)
Total Distributions to Shareholders		(6,364	)		(8,396	)		(14,332	)		(8,225	)		—			(31,116	)
Capital Share Transactions		(55,001	)		409,736			(115,011	)		732,511			(28,717	)		544,069
Net Increase (Decrease) in Net Assets		(62,788	)		403,336			(108,026	)		745,459			54,134			561,157
Net Assets, Beginning of Period		564,325			160,989			1,084,511			339,052			995,824			434,667
Net Assets, End of Period	$	501,537		$	564,325		$	976,485		$	1,084,511		$	1,049,958		$	995,824
Undistributed net investment income	$	2,033		$	2,548		$	2,592		$	2,365		$	1,806		$	123

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

132 SEMIANNUAL REPORT 2018

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 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	14,256		$	28,268		$	864		$	813		$	185,337		$	304,296
Net realized gain (loss) on investments		16,734			(17,403	)		—	*		2			(138,838	)		(118,597	)
Net change in unrealized appreciation (depreciation)		(9,315	)		28,477			—			—			118,720			46,651
Net Increase in Net Assets Resulting from Operations		21,675			39,342			864			815			165,219			232,350
Distributions to Shareholders From:
Net investment income:
Class A		(4,601	)		(7,432	)		(736	)		(742	)		(71,418	)		(90,014	)
Class B		(45	)		(95	)		(2	)		—	*		(1,682	)		(4,289	)
Class C		(575	)		(1,326	)		(28	)		(4	)		(23,488	)		(55,288	)
Class E		(79	)		(117	)		(38	)		(29	)		(305	)		(640	)
Class I		(8,753	)		(15,917	)		N/A			N/A			(73,363	)		(124,128	)
Class N		(615	)		(1,302	)		(61	)		(38	)		(2,580	)		(3,473	)
Class R		(6	)		(10	)		N/A			N/A			(2,020	)		(4,436	)
Class T		N/A			N/A			N/A			N/A			(9	)		(13	)
Class Y		(32	)		(94	)		N/A			N/A			(10,514	)		(24,840	)
Net realized gains:
Class A		—			—			—			(2	)		—			—
Class B		—			—			—			—	*		—			—
Class C		—			—			—			(1	)		—			—
Class E		—			—			—			—	*		—			—
Class I		—			—			N/A			N/A			—			—
Class N		—			—			—			—	*		—			—
Class R		—			—			N/A			N/A			—			—
Class T		N/A			N/A			N/A			N/A			—			—
Class Y		—			—			N/A			N/A			—			—
Total Distributions to Shareholders		(14,706	)		(26,293	)		(865	)		(816	)		(185,379	)		(307,121	)
Capital Share Transactions		(94,126	)		(100,828	)		(19,939	)		(50,149	)		(83,089	)		1,233,617
Net Increase (Decrease) in Net Assets		(87,157	)		(87,779	)		(19,940	)		(50,150	)		(103,249	)		1,158,846
Net Assets, Beginning of Period		637,824			725,603			173,886			224,036			5,705,022			4,546,176
Net Assets, End of Period	$	550,667		$	637,824		$	153,946		$	173,886		$	5,601,773		$	5,705,022
Undistributed net investment income	$	147		$	638		$	—		$	1		$	—		$	106

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2018 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 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	95,900		$	96,695		$	827		$	942		$	12,845		$	26,091
Net realized gain (loss) on investments		255,149			275,571			321,738			164,446			(8,838	)		(1,856	)
Net change in unrealized appreciation (depreciation)		(472,648	)		338,658			214,546			159,457			3,338			(15,906	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(121,599	)		710,924			537,111			324,845			7,345			8,329
Distributions to Shareholders From:
Net investment income:
Class A		—			(6,784	)		—			—			(3,895	)		(8,375	)
Class B		—			(36	)		—			—			(26	)		(62	)
Class C		—			(1,431	)		—			—			(290	)		(696	)
Class E		—			(75	)		—			—			(41	)		(80	)
Class I		—			(52,898	)		—			(1,732	)		(7,567	)		(15,601	)
Class N		—			(19,584	)		—			(478	)		(1,272	)		(1,797	)
Class R		—			(859	)		—			—			(5	)		(11	)
Class T		—			(3	)		N/A			N/A			N/A			N/A
Class Y		—			(5,586	)		—			—			(99	)		(236	)
Net realized gains:
Class A		—			—			—			(23,286	)		—			—
Class B		—			—			—			(479	)		—			—
Class C		—			—			—			(5,007	)		—			—
Class E		—			—			—			(674	)		—			—
Class I		—			—			—			(42,253	)		—			—
Class N		—			—			—			(5,064	)		—			—
Class R		—			—			—			(983	)		—			—
Class T		—			—			N/A			N/A			N/A			N/A
Class Y		—			—			—			(1,489	)		—			—
Total Distributions to Shareholders		—			(87,256	)		—			(81,445	)		(13,195	)		(26,858	)
Capital Share Transactions		(208,170	)		1,722,980			(176,386	)		1,760,442			5,538			(292,137	)
Net Increase (Decrease) in Net Assets		(329,769	)		2,346,648			360,725			2,003,842			(312	)		(310,666	)
Net Assets, Beginning of Period		7,269,238			4,922,590			3,628,597			1,624,755			1,303,457			1,614,123
Net Assets, End of Period	$	6,939,469		$	7,269,238		$	3,989,322		$	3,628,597		$	1,303,145		$	1,303,457
Undistributed (distributions in excess of) net investment income	$	119,236		$	24,830		$	235		$	(592	)	$	(350	)	$	—	*

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

134 SEMIANNUAL REPORT 2018

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 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	252		$	2,877		$	(1,033	)	$	(1,865	)	$	(9,403	)	$	(9,696	)
Net realized gain on investments		7,743			9,953			5,726			6,506			160,121			302,710
Net change in unrealized appreciation (depreciation)		(13,531	)		14,945			38,759			11,923			486,201			204,441
Net Increase (Decrease) in Net Assets Resulting from Operations		(5,536	)		27,775			43,452			16,564			636,919			497,455
Distributions to Shareholders From:
Net investment income:
Class A		—			(967	)		—			—			—			—
Class B		—			(6	)		—			—			—			—
Class C		—			(34	)		—			—			—			—
Class E		—			(7	)		N/A			N/A			—			—
Class I		—			(1,844	)		—			—			—			—
Class N		—			(4	)		—			—			—			—
Class R		—			(10	)		—			—			—			—
Class Y		—			(9	)		—			—			—			—
Net realized gains:
Class A		—			(962	)		—			—			—			(32,830	)
Class B		—			(11	)		—			—			—			(1,561	)
Class C		—			(59	)		—			—			—			(17,948	)
Class E		—			(6	)		N/A			N/A			—			(753	)
Class I		—			(1,544	)		—			—			—			(87,126	)
Class N		—			(4	)		—			—			—			(8,969	)
Class R		—			(11	)		—			—			—			(3,805	)
Class Y		—			(8	)		—			—			—			(18,752	)
Total Distributions to Shareholders		—			(5,486	)		—			—			—			(171,744	)
Capital Share Transactions		(28,391	)		21,585			9,175			(27,756	)		(10,908	)		1,601,186
Net Increase (Decrease) in Net Assets		(33,927	)		43,874			52,627			(11,192	)		626,011			1,926,897
Net Assets, Beginning of Period		232,631			188,757			155,093			166,285			4,147,232			2,220,335
Net Assets, End of Period	$	198,704		$	232,631		$	207,720		$	155,093		$	4,773,243		$	4,147,232
Undistributed (distributions in excess of) net investment income	$	166		$	(86	)	$	(1,435	)	$	(402	)	$	(22,643	)	$	(13,236	)

See Accompanying Notes to Financial Statements.

2018 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 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	3,245		$	5,105		$	14,657		$	17,954		$	30,195		$	38,709
Net realized gain (loss) on investments		626			12,760			2,724			1,888			12,124			(32,938	)
Net change in unrealized appreciation (depreciation)		27,364			15,428			(12,801	)		(19,781	)		(23,039	)		28,181
Net Increase in Net Assets Resulting from Operations		31,235			33,293			4,580			61			19,280			33,952
Distributions to Shareholders From:
Net investment income:
Class A		(698	)		(1,377	)		(8,638	)		(9,852	)		(16,208	)		(10,205	)
Class B		N/A			N/A			(26	)		(45	)		(157	)		(324	)
Class C		(35	)		(78	)		(321	)		(569	)		(2,560	)		(5,259	)
Class E		(22	)		(41	)		N/A			N/A			N/A			N/A
Class I		(1,548	)		(2,692	)		(6,428	)		(6,415	)		(11,590	)		(22,192	)
Class N		(433	)		(795	)		(10	)		(10	)		(14	)		(11	)
Class R		(14	)		(27	)		N/A			N/A			N/A			N/A
Class Y		(48	)		(89	)		(10	)		(18	)		(216	)		(552	)
Net realized gains:
Class A		—			—			—			—			—			(156	)
Class B		N/A			N/A			—			—			—			(8	)
Class C		—			—			—			—			—			(126	)
Class E		—			—			N/A			N/A			N/A			N/A
Class I		—			—			—			—			—			(419	)
Class N		—			—			—			—			—			—	*
Class R		—			—			N/A			N/A			N/A			N/A
Class Y		—			—			—			—			—			(12	)
Total Distributions to Shareholders		(2,798	)		(5,099	)		(15,433	)		(16,909	)		(30,745	)		(39,264	)
Capital Share Transactions		39,955			(14,728	)		(38,723	)		702,053			(130,505	)		359,671
Net Increase (Decrease) in Net Assets		68,392			13,466			(49,576	)		685,205			(141,970	)		354,359
Net Assets, Beginning of Period		340,457			326,991			877,087			191,882			1,414,256			1,059,897
Net Assets, End of Period	$	408,849		$	340,457		$	827,511		$	877,087		$	1,272,286		$	1,414,256
Undistributed net investment income	$	1,070		$	623		$	300		$	1,076		$	2,653		$	3,203

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

136 SEMIANNUAL REPORT 2018

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Pzena International Value Fund(1)						Ivy Securian Core Bond Fund(2)						Ivy Small Cap Core Fund
(In thousands)	Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	1,385		$	1,250		$	15,373		$	26,415		$	(1,141	)	$	(918	)
Net realized gain (loss) on investments		32,969			17,200			(2,171	)		3,175			48,961			49,732
Net change in unrealized appreciation (depreciation)		(30,835	)		(5,435	)		(10,828	)		(9,720	)		55,344			(13,562	)
Net Increase in Net Assets Resulting from Operations		3,519			13,015			2,374			19,870			103,164			35,252
Distributions to Shareholders From:
Net investment income:
Class A		—			(785	)		(2,771	)		(5,488	)		—			—
Class B		—			—			(32	)		(72	)		—			—
Class C		—			(28	)		(164	)		(431	)		—			—
Class E		N/A			—			(54	)		(112	)		—			—
Class I		—			(1,035	)		(9,575	)		(15,714	)		—			—
Class N		—			(2	)		(3,158	)		(5,249	)		—			—
Class R		—			(3	)		(21	)		(213	)		—			—
Class T		N/A			N/A			N/A			N/A			—			—
Class Y		—			(22	)		(72	)		(132	)		—			—
Net realized gains:
Class A		—			—			—			—			—			(4,280	)
Class B		—			—			—			—			—			(75	)
Class C		—			—			—			—			—			(833	)
Class E		N/A			—			—			—			—			(4	)
Class I		—			—			—			—			—			(7,147	)
Class N		—			—			—			—			—			(859	)
Class R		—			—			—			—			—			(224	)
Class T		N/A			N/A			N/A			N/A			—			(6	)
Class Y		—			—			—			—			—			(383	)
Total Distributions to Shareholders		—			(1,875	)		(15,847	)		(27,411	)		—			(13,811	)
Capital Share Transactions		120,837			(44,485	)		(30,138	)		244,297			49,675			77,817
Net Increase (Decrease) in Net Assets		124,356			(33,345	)		(43,611	)		236,756			152,839			99,258
Net Assets, Beginning of Period		179,367			212,712			950,358			713,602			626,893			527,635
Net Assets, End of Period	$	303,723		$	179,367		$	906,747		$	950,358		$	779,732		$	626,893
Undistributed (distributions in excess of) net investment income	$	1,567		$	247		$	(474	)	$	—		$	(1,177	)	$	(36	)

(1) Effective April 30, 2018, the Fund’s name changed from Ivy Cundill Global Value Fund to Ivy Pzena International Value Fund.

(2) Effective April 30, 2018, the Fund’s name changed from Ivy Advantus Bond Fund to Ivy Securian Core Bond Fund.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 137

STATEMENTS OF CHANGES IN NET ASSETS IVY FUNDS

	Ivy Small Cap Growth Fund						Ivy Tax-Managed Equity Fund						Ivy Value Fund
(In thousands)	Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18			Six months ended 9-30-18 (Unaudited)			Year ended 3-31-18
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	(8,603	)	$	(9,589	)	$	(136	)	$	160		$	8,184		$	7,826
Net realized gain on investments		217,544			139,874			11,423			22,014			44,837			19,077
Net change in unrealized appreciation		115,553			76,614			74,033			46,434			60,905			24,218
Net Increase in Net Assets Resulting from Operations		324,494			206,899			85,320			68,608			113,926			51,121
Distributions to Shareholders From:
Net investment income:
Class A		—			—			—			—			(1,167	)		(2,657	)
Class B		—			—			—			—			—			(15	)
Class C		—			—			—			—			—			(142	)
Class E		—			—			N/A			N/A			(1	)		(2	)
Class I		—			—			—			—			(3,214	)		(4,909	)
Class N		—			—			—			—			(1,038	)		(2,259	)
Class R		—			—			N/A			N/A			—	*		(3	)
Class T		—			—			N/A			N/A			N/A			N/A
Class Y		—			—			—			—			(2	)		(6	)
Net realized gains:
Class A		—			(26,501	)		—			(280	)		—			(7,777	)
Class B		—			(1,005	)		—			(10	)		—			(68	)
Class C		—			(22,491	)		—			(43	)		—			(513	)
Class E		—			(936	)		N/A			N/A			—			(4	)
Class I		—			(32,945	)		—			(512	)		—			(11,599	)
Class N		—			(8,721	)		—			(2	)		—			(3,387	)
Class R		—			(5,569	)		N/A			N/A			—			(8	)
Class T		—			(28	)		N/A			N/A			N/A			N/A
Class Y		—			(11,220	)		—			(4	)		—			(12	)
Total Distributions to Shareholders		—			(109,416	)		—			(851	)		(5,422	)		(33,361	)
Capital Share Transactions		104,478			1,079,498			(16,109	)		403,606			(53,390	)		828,672
Net Increase in Net Assets		428,972			1,176,981			69,211			471,363			55,114			846,432
Net Assets, Beginning of Period		2,169,751			992,770			589,064			117,701			1,168,541			322,109
Net Assets, End of Period	$	2,598,723		$	2,169,751		$	658,275		$	589,064		$	1,223,655		$	1,168,541
Undistributed net investment income	$	(2,886	)	$	5,717		$	(28	)	$	108		$	6,003		$	3,241

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

138 SEMIANNUAL REPORT 2018

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2018 SEMIANNUAL REPORT 139

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 9-30-2018 (unaudited)	$	14.78	$	0.04		$	1.50		$	1.54		$	—		$	—		$	—
Year ended 3-31-2018		13.55		0.05			2.11			2.16			(0.03	)		(0.90	)		(0.93	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		12.21		(0.04	)		1.24			1.20			—			—			—
Year ended 3-31-2018		11.42		(0.09	)		1.77			1.68			—			(0.89	)		(0.89	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		12.69		(0.02	)		1.29			1.27			—			—			—
Year ended 3-31-2018		11.81		(0.06	)		1.83			1.77			—			(0.89	)		(0.89	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		14.71		0.03			1.50			1.53			—			—			—
Year ended 3-31-2018		13.50		0.04			2.10			2.14			(0.03	)		(0.90	)		(0.93	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		16.48		0.06			1.68			1.74			—			—			—
Year ended 3-31-2018		15.01		0.09			2.35			2.44			(0.07	)		(0.90	)		(0.97	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		16.51		0.07			1.69			1.76			—			—			—
Year ended 3-31-2018		15.03		0.10			2.36			2.46			(0.08	)		(0.90	)		(0.98	)
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 9-30-2018 (unaudited)		14.67		0.01			1.49			1.50			—			—			—
Year ended 3-31-2018		13.47		(0.01	)		2.11			2.10			—			(0.90	)		(0.90	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		16.02		0.06			1.63			1.69			—			—			—
Year ended 3-31-2018		14.61		0.09			2.28			2.37			(0.06	)		(0.90	)		(0.96	)
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	)

* 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.

140 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	16.32		10.42	%	$	3,269		1.02	%(4)		0.51	%(4)		—	%		—	%		37	%
Year ended 3-31-2018		14.78		16.31			3,149		1.04			0.33			1.04			0.33			51
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		13.41		9.91			9		2.08	(4)		-0.56	(4)		—			—			37
Year ended 3-31-2018		12.21		15.11			11		2.11			-0.71			—			—			51
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		13.96		10.01			64		1.84	(4)		-0.32	(4)		—			—			37
Year ended 3-31-2018		12.69		15.39			70		1.89			-0.50			—			—			51
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		16.24		10.40			14		1.12	(4)		0.40	(4)		1.21	(4)		0.31	(4)		37
Year ended 3-31-2018		14.71		16.22			14		1.13			0.25			1.31			0.07			51
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		18.22		10.56			1,256		0.81	(4)		0.71	(4)		—			—			37
Year ended 3-31-2018		16.48		16.60			1,216		0.82			0.56			0.84			0.54			51
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		18.27		10.66			57		0.65	(4)		0.85	(4)		—			—			37
Year ended 3-31-2018		16.51		16.74			71		0.73			0.64			—			—			51
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 9-30-2018 (unaudited)		16.17		10.22			1		1.40	(4)		0.10	(4)		—			—			37
Year ended 3-31-2018		14.67		15.91			2		1.46			-0.08			—			—			51
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		17.71		10.55			68		0.84	(4)		0.67	(4)		1.04	(4)		0.47	(4)		37
Year ended 3-31-2018		16.02		16.61			50		0.84			0.55			1.10			0.29			51
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

(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.

(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.

2018 SEMIANNUAL REPORT 141

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 9-30-2018 (unaudited)	$	21.60	$	0.11		$	(3.35	)	$	(3.24	)	$	—		$	—	$	—
Year ended 3-31-2018		16.95		0.01			4.64			4.65			—	*		—		—	*
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		17.68		0.02			(2.74	)		(2.72	)		—			—		—
Year ended 3-31-2018		14.01		(0.14	)		3.81			3.67			—			—		—
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			—			—		—
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		18.54		0.04			(2.87	)		(2.83	)		—			—		—
Year ended 3-31-2018		14.65		(0.12	)		4.01			3.89			—			—		—
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	)
Class E Shares(6)
Six-month period ended 9-30-2018 (unaudited)		21.94		0.13			(3.40	)		(3.27	)		—			—		—
Year ended 3-31-2018		17.20		0.07			4.70			4.77			(0.03	)		—		(0.03	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		22.30		0.16			(3.46	)		(3.30	)		—			—		—
Year ended 3-31-2018		17.47		0.09			4.80			4.89			(0.06	)		—		(0.06	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		22.42		0.16			(3.47	)		(3.31	)		—			—		—
Year ended 3-31-2018		17.56		0.12			4.80			4.92			(0.06	)		—		(0.06	)
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 9-30-2018 (unaudited)		21.40		0.08			(3.31	)		(3.23	)		—			—		—
Year ended 3-31-2018		16.83		(0.04	)		4.61			4.57			—			—		—
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	)
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		21.63		0.13			(3.35	)		(3.22	)		—			—		—
Year ended 3-31-2018(8)		17.95		0.01			3.68			3.69			(0.01	)		—		(0.01	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		22.02		0.12			(3.41	)		(3.29	)		—			—		—
Year ended 3-31-2018		17.27		0.02			4.74			4.76			(0.01	)		—		(0.01	)
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	)

* 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 2018

	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 9-30-2018 (unaudited)	$	18.36		-15.00	%	$	363			1.42	%(4)		1.10	%(4)		—	%		—	%		33	%
Year ended 3-31-2018		21.60		27.44			569			1.44			0.07			—			—			38
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		14.96		-15.38			3			2.36	(4)		0.19	(4)		—			—			33
Year ended 3-31-2018		17.68		26.27			5			2.40			-0.83			—			—			38
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		15.71		-15.26			77			2.09	(4)		0.45	(4)		—			—			33
Year ended 3-31-2018		18.54		26.55			95			2.13			-0.66			—			—			38
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
Class E Shares(6)
Six-month period ended 9-30-2018 (unaudited)		18.67		-14.90			—	*		1.18	(4)		1.35	(4)		—			—			33
Year ended 3-31-2018		21.94		27.75			—	*		1.21			0.35			—			—			38
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		19.00		-14.80			1,373			0.99	(4)		1.55	(4)		1.09	(4)		1.45	(4)		33
Year ended 3-31-2018		22.30		28.03			1,689			0.99			0.44			1.10			0.33			38
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		19.11		-14.76			271			0.94	(4)		1.60	(4)		—			—			33
Year ended 3-31-2018		22.42		28.07			310			0.95			0.58			—			—			38
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	(9)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		18.17		-15.09			15			1.68	(4)		0.84	(4)		—			—			33
Year ended 3-31-2018		21.40		27.15			20			1.70			-0.19			—			—			38
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
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		18.41		-14.89			—	*		1.18	(4)		1.35	(4)		—			—			33
Year ended 3-31-2018(8)		21.63		20.54			—	*		1.28	(4)		0.09	(4)		—			—			38	(10)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		18.73		-14.94			51			1.33	(4)		1.18	(4)		—			—			33
Year ended 3-31-2018		22.02		27.58			68			1.36			0.12			—			—			38
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

(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.

(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 July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(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, 2018.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 143

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 9-30-2018 (unaudited)	$	32.66	$	0.32		$	(0.42	)	$	(0.10	)	$	—		$	—	$	—
Year ended 3-31-2018		28.53		0.35			4.11			4.46			(0.33	)		—		(0.33	)
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	)
Class B Shares(4)
Six-month period ended 9-30-2018 (unaudited)		29.97		0.14			(0.40	)		(0.26	)		—			—		—
Year ended 3-31-2018		26.26		0.03			3.77			3.80			(0.09	)		—		(0.09	)
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			—			—		—
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		30.78		0.22			(0.41	)		(0.19	)		—			—		—
Year ended 3-31-2018		26.94		0.14			3.87			4.01			(0.17	)		—		(0.17	)
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			—			—		—
Class E Shares(5)
Six-month period ended 9-30-2018 (unaudited)		32.90		0.37			(0.42	)		(0.05	)		—			—		—
Year ended 3-31-2018		28.74		0.45			4.15			4.60			(0.44	)		—		(0.44	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		32.96		0.38			(0.42	)		(0.04	)		—			—		—
Year ended 3-31-2018		28.78		0.52			4.13			4.65			(0.47	)		—		(0.47	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		33.11		0.49			(0.52	)		(0.03	)		—			—		—
Year ended 3-31-2018		28.92		0.37			4.34			4.71			(0.52	)		—		(0.52	)
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 9-30-2018 (unaudited)		32.61		0.29			(0.42	)		(0.13	)		—			—		—
Year ended 3-31-2018		28.50		0.29			4.11			4.40			(0.29	)		—		(0.29	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		32.90		0.33			(0.40	)		(0.07	)		—			—		—
Year ended 3-31-2018		28.75		0.42			4.14			4.56			(0.41	)		—		(0.41	)
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	)

* 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.

144 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	32.56		-0.31	%	$	72			1.67	%(3)		1.92	%(3)		32	%
Year ended 3-31-2018		32.66		15.65			79			1.64			1.10			84
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
Class B Shares(4)
Six-month period ended 9-30-2018 (unaudited)		29.71		-0.83			—	*		2.72	(3)		0.94	(3)		32
Year ended 3-31-2018		29.97		14.47			1			2.70			0.10			84
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		30.59		-0.62			3			2.24	(3)		1.39	(3)		32
Year ended 3-31-2018		30.78		14.89			4			2.31			0.48			84
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
Class E Shares(5)
Six-month  period ended 9-30-2018 (unaudited)		32.85		-0.15			—	*		1.36	(3)		2.20	(3)		32
Year ended 3-31-2018		32.90		16.04			—	*		1.30			1.41			84
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		32.92		-0.12			64			1.26	(3)		2.30	(3)		32
Year ended 3-31-2018		32.96		16.18			66			1.21			1.65			84
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		33.08		-0.09			12			1.07	(3)		2.90	(3)		32
Year ended 3-31-2018		33.11		16.34			98			1.03			1.13			84
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 9-30-2018 (unaudited)		32.48		-0.40			1			1.84	(3)		1.74	(3)		32
Year ended 3-31-2018		32.61		15.51			1			1.78			0.91			84
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		32.83		-0.21			1			1.50	(3)		1.97	(3)		32
Year ended 3-31-2018		32.90		15.88			1			1.44			1.31			84
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

(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.

(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.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 145

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 9-30-2018 (unaudited)	$	9.68	$	0.15	$	(0.17	)	$	(0.02	)	$	(0.11	)	$	—		$	(0.11	)
Year ended 3-31-2018		9.68		0.32		(0.11	)		0.21			(0.21	)		—			(0.21	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		9.68		0.12		(0.18	)		(0.06	)		(0.08	)		—			(0.08	)
Year ended 3-31-2018		9.67		0.23		(0.08	)		0.15			(0.14	)		—			(0.14	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		9.68		0.12		(0.18	)		(0.06	)		(0.08	)		—			(0.08	)
Year ended 3-31-2018		9.68		0.23		(0.09	)		0.14			(0.14	)		—			(0.14	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		9.68		0.17		(0.19	)		(0.02	)		(0.12	)		—			(0.12	)
Year ended 3-31-2018		9.68		0.34		(0.11	)		0.23			(0.23	)		—			(0.23	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		9.69		0.16		(0.18	)		(0.02	)		(0.12	)		—			(0.12	)
Year ended 3-31-2018		9.68		0.33		(0.09	)		0.24			(0.23	)		—			(0.23	)
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 9-30-2018 (unaudited)		9.67		0.13		(0.18	)		(0.05	)		(0.09	)		—			(0.09	)
Year ended 3-31-2018		9.66		0.26		(0.09	)		0.17			(0.16	)		—			(0.16	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		9.69		0.15		(0.18	)		(0.03	)		(0.11	)		—			(0.11	)
Year ended 3-31-2018		9.68		0.31		(0.09	)		0.22			(0.21	)		—			(0.21	)
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	)

* 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.

146 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	9.55		-0.31	%	$	230			0.99	%(4)		3.18	%(4)		1.24	%(4)		2.93	%(4)		16	%
Year ended 3-31-2018		9.68		2.16			265			1.01	(8)		3.22			1.26			2.97			56
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		9.54		-0.61			1			1.58	(4)		2.59	(4)		2.14	(4)		2.03	(4)		16
Year ended 3-31-2018		9.68		1.51			2			1.76	(9)		2.40			2.24			1.92			56
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		9.54		-0.67			10			1.71	(4)		2.46	(4)		1.92	(4)		2.25	(4)		16
Year ended 3-31-2018		9.68		1.40			13			1.76	(9)		2.40			1.96			2.20			56
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		9.54		-0.17			249			0.74	(4)		3.43	(4)		0.88	(4)		3.29	(4)		16
Year ended 3-31-2018		9.68		2.43			262			0.76	(10)		3.44			0.94			3.26			56
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		9.55		-0.17			10			0.72	(4)		3.45	(4)		—			—			16
Year ended 3-31-2018		9.69		2.43			18			0.74			3.37			0.76			3.35			56
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 9-30-2018 (unaudited)		9.53		-0.54			1			1.47	(4)		2.71	(4)		—			—			16
Year ended 3-31-2018		9.67		1.76			1			1.49			2.66			1.51			2.64			56
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		9.55		-0.31			1			0.99	(4)		3.17	(4)		1.12	(4)		3.04	(4)		16
Year ended 3-31-2018		9.69		2.27			3			1.02	(8)		3.13			1.16			2.99			56
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

(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) Expense ratio based on the period excluding reorganization expense was 0.99%.

(9) Expense ratio based on the period excluding reorganization expense was 1.74%.

(10) Expense ratio based on the period excluding reorganization expense was 0.74%.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 147

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 9-30-2018 (unaudited)	$	13.84	$	0.19	$	0.09		$	0.28		$	(0.19	)	$	—		$	(0.19	)
Year ended 3-31-2018		12.48		0.32		1.34			1.66			(0.30	)		—			(0.30	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		13.81		0.15		0.08			0.23			(0.12	)		—			(0.12	)
Year ended 3-31-2018		12.47		0.23		1.34			1.57			(0.23	)		—			(0.23	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		13.82		0.14		0.08			0.22			(0.12	)		—			(0.12	)
Year ended 3-31-2018		12.47		0.23		1.35			1.58			(0.23	)		—			(0.23	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		13.84		0.20		0.09			0.29			(0.20	)		—			(0.20	)
Year ended 3-31-2018(6)		14.33		0.03		(0.52	)		(0.49	)		—	*		—			—	*
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		13.85		0.21		0.09			0.30			(0.21	)		—			(0.21	)
Year ended 3-31-2018		12.48		0.37		1.34			1.71			(0.34	)		—			(0.34	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		13.86		0.23		0.08			0.31			(0.22	)		—			(0.22	)
Year ended 3-31-2018		12.49		0.35		1.39			1.74			(0.37	)		—			(0.37	)
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(7)		13.37		0.25		0.27			0.52			(0.30	)		(0.26	)		(0.56	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		13.84		0.17		0.09			0.26			(0.16	)		—			(0.16	)
Year ended 3-31-2018		12.48		0.28		1.35			1.63			(0.27	)		—			(0.27	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		13.84		0.19		0.09			0.28			(0.19	)		—			(0.19	)
Year ended 3-31-2018		12.48		0.33		1.35			1.68			(0.32	)		—			(0.32	)
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	)

* 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.

(6) For the period from February 26, 2018 (commencement of operations of the class) through March 31, 2018.

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

148 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	13.93		2.03	%	$	451			1.25	%(4)(10)		2.74	%(4)		1.25	%(4)		2.74	%(4)		8	%
Year ended 3-31-2018		13.84		13.44			494			1.29	(11)		2.34			—			—			55
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		13.92		1.60			6			1.93	(4)		2.09	(4)		2.13	(4)		1.89	(4)		8
Year ended 3-31-2018		13.81		12.81			8			1.97	(12)		1.69			—			—			55
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		13.92		1.70			27			1.92	(4)		2.10	(4)		—			—			8
Year ended 3-31-2018		13.82		12.80			39			1.93			1.72			—			—			55
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		13.93		2.09			6			1.16	(4)(13)		2.83	(4)		1.81	(4)		2.18	(4)		8
Year ended 3-31-2018(6)		13.84		-3.40			6			1.17	(4)(13)		2.32	(4)		1.32	(4)		2.17	(4)		55	(8)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		13.94		2.19			462			0.94	(4)(14)		3.05	(4)		0.97	(4)		3.02	(4)		8
Year ended 3-31-2018		13.85		13.88			523			1.00			2.75			—			—			55
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		13.95		2.25			14			0.79	(4)		3.30	(4)		—			—			8
Year ended 3-31-2018		13.86		14.07			5			0.86			2.58			—			—			55
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(7)		13.33		4.05			1			0.83	(4)		2.94	(4)		—			—			137	(9)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		13.94		1.91			1			1.53	(4)		2.46	(4)		—			—			8
Year ended 3-31-2018		13.84		13.20			1			1.58			2.07			—			—			55
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		13.93		2.05			9			1.25	(4)(15)		2.74	(4)		—			—			8
Year ended 3-31-2018		13.84		13.57			9			1.23	(15)		2.46			1.23			2.46			55
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

(8) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

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

(10) Expense ratio based on the period excluding reorganization expense was 1.24%.

(11) Expense ratio based on the period excluding reorganization expenses was 1.28%.

(12) Expense ratio based on the period excluding reorganization expenses was 1.95%.

(13) Expense ratio based on the period excluding reorganization expense was 1.13%.

(14) Expense ratio based on the period excluding reorganization expense was 0.92%.

(15) Expense ratio based on the period excluding reorganization expense was 1.19%.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 149

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 9-30-2018 (unaudited)	$	46.78	$	0.04		$	3.89		$	3.93		$	—		$	—		$	—
Year ended 3-31-2018		42.67		0.25			7.26			7.51			(0.06	)		(3.34	)		(3.40	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		39.50		(0.14	)		3.28			3.14			—			—			—
Year ended 3-31-2018		36.62		(0.31	)		6.33			6.02			—			(3.14	)		(3.14	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		39.93		(0.12	)		3.32			3.20			—			—			—
Year ended 3-31-2018		36.98		(0.26	)		6.42			6.16			—			(3.21	)		(3.21	)
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	)
Class E Shares(6)
Six-month period ended 9-30-2018 (unaudited)		47.12		0.09			3.93			4.02			—			—			—
Year ended 3-31-2018		42.94		0.16			7.49			7.65			(0.13	)		(3.34	)		(3.47	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		47.72		0.13			3.97			4.10			—			—			—
Year ended 3-31-2018		43.44		0.25			7.53			7.78			(0.16	)		(3.34	)		(3.50	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		47.99		0.16			3.99			4.15			—			—			—
Year ended 3-31-2018		43.64		0.20			7.71			7.91			(0.22	)		(3.34	)		(3.56	)
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(7)		42.56		0.15			1.22			1.37			(0.10	)		(0.51	)		(0.61	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		46.41		(0.02	)		3.85			3.83			—			—			—
Year ended 3-31-2018		42.41		(0.07	)		7.39			7.32			—			(3.32	)		(3.32	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		47.00		0.04			3.92			3.96			—			—			—
Year ended 3-31-2018		42.86		0.12			7.44			7.56			(0.08	)		(3.34	)		(3.42	)
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	)

* 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.

150 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	50.71		8.42	%	$	531			1.38	%(4)		0.18	%(4)		—	%		—	%		31	%
Year ended 3-31-2018		46.78		17.92			510			1.38			0.53			—			—			46
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		42.64		7.92			1			2.27	(4)		-0.70	(4)		2.33	(4)		-0.76	(4)		31
Year ended 3-31-2018		39.50		16.79			2			2.40			-0.79			—			—			46
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		43.13		8.01			10			2.14	(4)		-0.57	(4)		—			—			31
Year ended 3-31-2018		39.93		16.99			11			2.18			-0.65			—			—			46
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
Class E Shares(6)
Six-month period ended 9-30-2018 (unaudited)		51.14		8.51			—	*		1.19	(4)		0.38	(4)		—			—			31
Year ended 3-31-2018		47.12		18.17			—	*		1.20			0.34			—			—			46
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		51.82		8.57			478			1.06	(4)		0.50	(4)		1.10	(4)		0.46	(4)		31
Year ended 3-31-2018		47.72		18.27			437			1.13	(9)		0.54			—			—			46
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		52.14		8.65			21			0.93	(4)		0.65	(4)		—			—			31
Year ended 3-31-2018		47.99		18.45			24			0.95			0.42			—			—			46
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(7)		43.32		3.31			3			0.95	(4)		0.55	(4)		—			—			61	(8)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		50.24		8.25			2			1.67	(4)		-0.10	(4)		—			—			31
Year ended 3-31-2018		46.41		17.58			2			1.69			-0.15			—			—			46
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		50.96		8.43			7			1.34	(4)		0.18	(4)		—			—			31
Year ended 3-31-2018		47.00		17.96			10			1.36			0.25			—			—			46
Year ended 3-31-2017		42.86		8.86			14			1.36			—	*		—			—			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

(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.

(6) Class is closed to investment.

(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) Expense ratio based on the period excluding reorganization expenses was 1.11%.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 151

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 9-30-2018 (unaudited)	$	15.18	$	0.35	$	0.18		$	0.53		$	(0.37	)	$	—	$	(0.37	)
Year ended 3-31-2018		14.93		0.60		0.21			0.81			(0.56	)		—		(0.56	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		14.88		0.28		0.18			0.46			(0.31	)		—		(0.31	)
Year ended 3-31-2018		14.66		0.47		0.18			0.65			(0.43	)		—		(0.43	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		14.99		0.30		0.17			0.47			(0.33	)		—		(0.33	)
Year ended 3-31-2018		14.75		0.50		0.20			0.70			(0.46	)		—		(0.46	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		15.18		0.35		0.18			0.53			(0.37	)		—		(0.37	)
Year ended 3-31-2018		14.94		0.58		0.21			0.79			(0.55	)		—		(0.55	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		15.31		0.38		0.18			0.56			(0.40	)		—		(0.40	)
Year ended 3-31-2018		15.06		0.65		0.21			0.86			(0.61	)		—		(0.61	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		15.32		0.40		0.17			0.57			(0.41	)		—		(0.41	)
Year ended 3-31-2018		15.07		0.63		0.26			0.89			(0.64	)		—		(0.64	)
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 9-30-2018 (unaudited)		15.17		0.33		0.18			0.51			(0.35	)		—		(0.35	)
Year ended 3-31-2018		14.93		0.55		0.21			0.76			(0.52	)		—		(0.52	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		15.25		0.35		0.19			0.54			(0.38	)		—		(0.38	)
Year ended 3-31-2018		15.00		0.66		0.16			0.82			(0.57	)		—		(0.57	)
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	)

* 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.

152 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	15.34		3.50	%	$	182			1.26	%(4)		4.57	%(4)		—	%		—	%		5	%
Year ended 3-31-2018		15.18		5.45			200			1.25			3.92			—			—			42
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		15.03		3.09			2			2.16	(4)		3.67	(4)		—			—			5
Year ended 3-31-2018		14.88		4.46			2			2.12			3.14			—			—			42
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		15.13		3.23			25			1.88	(4)		3.96	(4)		—			—			5
Year ended 3-31-2018		14.99		4.70			30			1.89			3.33			—			—			42
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		15.34		3.54			3			1.31	(4)		4.51	(4)		1.47	(4)		4.35	(4)		5
Year ended 3-31-2018		15.18		5.32			3			1.31			3.77			1.46			3.62			42
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		15.47		3.69			327			0.96	(4)		4.87	(4)		—			—			5
Year ended 3-31-2018		15.31		5.74			368			0.94			4.23			—			—			42
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		15.48		3.77			11			0.79	(4)		5.11	(4)		—			—			5
Year ended 3-31-2018		15.32		5.91			34			0.78			4.01			—			—			42
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 9-30-2018 (unaudited)		15.33		3.41			—	*		1.55	(4)		4.28	(4)		—			—			5
Year ended 3-31-2018		15.17		5.10			—	*		1.53			3.61			—			—			42
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		15.41		3.59			1			1.19	(4)(8)		4.58	(4)		1.22	(4)		4.55	(4)		5
Year ended 3-31-2018		15.25		5.52			1			1.17			4.31			1.18			4.30			42
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

(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.

(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) Expense ratio based on the period excluding reorganization expense was 1.17%.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 153

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 9-30-2018 (unaudited)	$	1.00	$	0.01		$	0.00	*	$	0.01		$	(0.01	)	$	—		$	(0.01	)
Year ended 3-31-2018		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	*		—	*		—			—	*
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2018		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	*		—	*		—			—	*
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		1.00		0.00	*		0.00	*		0.00	*		—	*		—			—	*
Year ended 3-31-2018		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	*		—	*		—			—	*
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		1.00		0.01			0.00	*		0.01			(0.01	)		—			(0.01	)
Year ended 3-31-2018		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	*		—	*		—			—	*
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		1.00		0.01			0.00	*		0.01			(0.01	)		—			(0.01	)
Year ended 3-31-2018(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.

(6) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

154 SEMIANNUAL REPORT 2018

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)
Class A Shares
Six-month period ended 9-30-2018 (unaudited)	$	1.00		0.58	%	$	124		0.82	%(4)		1.15	%(4)		—	%		—	%
Year ended 3-31-2018		1.00		0.56			135		0.66			0.55			—			—
Year ended 3-31-2017		1.00		0.03			184		0.60			0.03			0.63			—
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		1.00		0.12			2		1.73	(4)		0.23	(4)		—			—
Year ended 3-31-2018		1.00		0.01			3		1.16			0.01			1.67			-0.50
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		1.00		0.18			14		1.61	(4)		0.35	(4)		—			—
Year ended 3-31-2018		1.00		0.02			22		1.18			0.02			1.61			-0.41
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		1.00		0.64			6		0.70	(4)		1.28	(4)		0.76	(4)		1.22	(4)
Year ended 3-31-2018		1.00		0.51			6		0.71			0.49			—			—
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		1.00		0.73			8		0.52	(4)		1.46	(4)		—			—
Year ended 3-31-2018(6)		1.00		0.65			8		0.40	(4)		1.03	(4)		—			—

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 155

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 9-30-2018 (unaudited)	$	7.49	$	0.25	$	(0.02	)	$	0.23		$	(0.25	)	$	—		$	(0.25	)
Year ended 3-31-2018		7.60		0.53		(0.12	)		0.41			(0.52	)		—			(0.52	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		7.49		0.22		(0.02	)		0.20			(0.22	)		—			(0.22	)
Year ended 3-31-2018		7.60		0.45		(0.10	)		0.35			(0.46	)		—			(0.46	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		7.49		0.22		(0.02	)		0.20			(0.22	)		—			(0.22	)
Year ended 3-31-2018		7.60		0.45		(0.09	)		0.36			(0.47	)		—			(0.47	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		7.49		0.24		(0.02	)		0.22			(0.24	)		—			(0.24	)
Year ended 3-31-2018		7.60		0.48		(0.09	)		0.39			(0.50	)		—			(0.50	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		7.49		0.26		(0.02	)		0.24			(0.26	)		—			(0.26	)
Year ended 3-31-2018		7.60		0.53		(0.10	)		0.43			(0.54	)		—			(0.54	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		7.49		0.26		(0.02	)		0.24			(0.26	)		—			(0.26	)
Year ended 3-31-2018		7.60		0.53		(0.09	)		0.44			(0.55	)		—			(0.55	)
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 9-30-2018 (unaudited)		7.49		0.23		(0.02	)		0.21			(0.23	)		—			(0.23	)
Year ended 3-31-2018		7.60		0.48		(0.10	)		0.38			(0.49	)		—			(0.49	)
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	)
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		7.49		0.25		(0.02	)		0.23			(0.25	)		—			(0.25	)
Year ended 3-31-2018(7)		7.62		0.35		(0.10	)		0.25			(0.38	)		—			(0.38	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		7.49		0.25		(0.02	)		0.23			(0.25	)		—			(0.25	)
Year ended 3-31-2018		7.60		0.50		(0.09	)		0.41			(0.52	)		—			(0.52	)
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	)

* 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.

156 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	7.47		3.06	%	$	2,110			0.95	%(4)		6.58	%(4)		—	%		—	%		23	%
Year ended 3-31-2018		7.49		5.54			2,221			0.95			7.02			—			—			39
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		7.47		2.68			52			1.71	(4)		5.82	(4)		1.72	(4)		5.81	(4)		23
Year ended 3-31-2018		7.49		4.72			62			1.71			5.90			—			—			39
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		7.47		2.72			773			1.66	(4)		5.88	(4)		1.66	(4)		5.88	(4)		23
Year ended 3-31-2018		7.49		4.77			817			1.66			5.94			—			—			39
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		7.47		3.00			9			1.10	(4)		6.43	(4)		1.24	(4)		6.29	(4)		23
Year ended 3-31-2018		7.49		5.28			10			1.13			6.38			1.21			6.30			39
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		7.47		3.20			2,194			0.72	(4)		6.81	(4)		—			—			23
Year ended 3-31-2018		7.49		5.77			2,156			0.72			6.99			—			—			39
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		7.47		3.29			89			0.56	(4)		6.98	(4)		—			—			23
Year ended 3-31-2018		7.49		5.93			45			0.57			7.02			—			—			39
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	(8)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		7.47		2.90			65			1.31	(4)		6.23	(4)		—			—			23
Year ended 3-31-2018		7.49		5.15			65			1.30			6.26			—			—			39
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
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		7.47		3.14			—	*		0.82	(4)		6.71	(4)		—			—			23
Year ended 3-31-2018(7)		7.49		3.29			—	*		0.82	(4)		6.35	(4)		—			—			39	(9)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		7.47		3.08			310			0.95	(4)		6.58	(4)		0.96	(4)		6.57	(4)		23
Year ended 3-31-2018		7.49		5.53			329			0.95			6.63			0.96			6.62			39
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

(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.

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

(7) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(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, 2018.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 157

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 9-30-2018 (unaudited)	$	19.98	$	0.24	$	(0.61	)	$	(0.37	)	$	—		$	—		$	—
Year ended 3-31-2018		17.97		0.25		1.96			2.21			(0.20	)		—			(0.20	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		17.72		0.14		(0.54	)		(0.40	)		—			—			—
Year ended 3-31-2018		15.98		0.09		1.73			1.82			(0.08	)		—			(0.08	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		17.77		0.16		(0.54	)		(0.38	)		—			—			—
Year ended 3-31-2018		16.02		0.11		1.74			1.85			(0.10	)		—			(0.10	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		20.11		0.23		(0.60	)		(0.37	)		—			—			—
Year ended 3-31-2018		18.09		0.24		1.98			2.22			(0.20	)		—			(0.20	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		20.10		0.27		(0.60	)		(0.33	)		—			—			—
Year ended 3-31-2018		18.07		0.31		1.98			2.29			(0.26	)		—			(0.26	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		20.16		0.29		(0.61	)		(0.32	)		—			—			—
Year ended 3-31-2018		18.13		0.30		2.02			2.32			(0.29	)		—			(0.29	)
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 9-30-2018 (unaudited)		19.97		0.21		(0.61	)		(0.40	)		—			—			—
Year ended 3-31-2018		17.96		0.17		1.99			2.16			(0.15	)		—			(0.15	)
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	)
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		20.01		0.26		(0.61	)		(0.35	)		—			—			—
Year ended 3-31-2018(7)		18.96		0.13		1.12			1.25			(0.20	)		—			(0.20	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		20.12		0.25		(0.62	)		(0.37	)		—			—			—
Year ended 3-31-2018		18.09		0.26		1.98			2.24			(0.21	)		—			(0.21	)
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	)

* 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 2018

	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 9-30-2018 (unaudited)	$	19.61		-1.85	%	$	598			1.25	%(4)		2.41	%(4)		—	%		—	%		26	%
Year ended 3-31-2018		19.98		12.33			677			1.25			1.27			—			—			48
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		17.32		-2.26			6			2.08	(4)		1.59	(4)		—			—			26
Year ended 3-31-2018		17.72		11.39			7			2.11			0.50			—			—			48
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		17.39		-2.14			212			1.89	(4)		1.76	(4)		—			—			26
Year ended 3-31-2018		17.77		11.57			240			1.93			0.62			—			—			48
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		19.74		-1.89			8			1.30	(4)		2.32	(4)		1.48	(4)		2.14	(4)		26
Year ended 3-31-2018		20.11		12.31			8			1.28			1.22			1.51			0.99			48
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		19.77		-1.64			3,997			0.89	(4)		2.73	(4)		0.94	(4)		2.68	(4)		26
Year ended 3-31-2018		20.10		12.70			4,136			0.94			1.59			—			—			48
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		19.84		-1.59			1,573			0.79	(4)		2.82	(4)		0.79	(4)		2.82	(4)		26
Year ended 3-31-2018		20.16		12.82			1,597			0.79			1.49			—			—			48
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	(8)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		19.57		-2.00			117			1.53	(4)		2.09	(4)		—			—			26
Year ended 3-31-2018		19.97		12.04			117			1.53			0.85			—			—			48
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
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		19.66		-1.70			2			1.04	(4)		1.91	(4)		—			—			26
Year ended 3-31-2018(7)		20.01		6.62			—	*		1.02	(4)		0.86	(4)		—			—			48	(9)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		19.75		-1.79			426			1.19	(4)		2.48	(4)		—			—			26
Year ended 3-31-2018		20.12		12.42			487			1.19			1.32			—			—			48
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

(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.

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

(7) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(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, 2018.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 159

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 9-30-2018 (unaudited)	$	22.65	$	(0.01	)	$	3.42		$	3.41		$	—		$	—		$	—
Year ended 3-31-2018		19.17		(0.01	)		4.46			4.45			—			(0.97	)		(0.97	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		17.46		(0.09	)		2.63			2.54			—			—			—
Year ended 3-31-2018		15.09		(0.16	)		3.50			3.34			—			(0.97	)		(0.97	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		18.87		(0.08	)		2.84			2.76			—			—			—
Year ended 3-31-2018		16.22		(0.15	)		3.77			3.62			—			(0.97	)		(0.97	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		22.62		(0.02	)		3.42			3.40			—			—			—
Year ended 3-31-2018		19.15		(0.02	)		4.46			4.44			—			(0.97	)		(0.97	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		23.80		0.03			3.59			3.62			—			—			—
Year ended 3-31-2018		20.08		0.04			4.69			4.73			(0.04	)		(0.97	)		(1.01	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		23.91		0.04			3.61			3.65			—			—			—
Year ended 3-31-2018		20.18		0.07			4.72			4.79			(0.09	)		(0.97	)		(1.06	)
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 9-30-2018 (unaudited)		21.79		(0.05	)		3.29			3.24			—			—			—
Year ended 3-31-2018		18.54		(0.09	)		4.31			4.22			—			(0.97	)		(0.97	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		23.24		(0.01	)		3.51			3.50			—			—			—
Year ended 3-31-2018		19.63		0.00	*		4.58			4.58			—			(0.97	)		(0.97	)
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	)

* 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.

160 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	26.06		15.05	%	$	1,930		1.05	%(4)		-0.07	%(4)		—	%		—	%		21	%
Year ended 3-31-2018		22.65		23.45			1,778		1.13			-0.05			1.13			-0.05			37
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		20.00		14.55			10		1.97	(4)		-0.99	(4)		1.97	(4)		-0.99	(4)		21
Year ended 3-31-2018		17.46		22.42			11		2.00			-0.95			—			—			37
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		21.63		14.63			84		1.80	(4)		-0.82	(4)		1.80	(4)		-0.82	(4)		21
Year ended 3-31-2018		18.87		22.59			84		1.86			-0.82			—			—			37
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		26.02		15.03			20		1.15	(4)		-0.17	(4)		1.19	(4)		-0.21	(4)		21
Year ended 3-31-2018		22.62		23.43			16		1.15			-0.11			1.28			-0.24			37
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		27.42		15.21			1,767		0.78	(4)		0.21	(4)		0.83	(4)		0.16	(4)		21
Year ended 3-31-2018		23.80		23.80			1,580		0.88			0.18			—			—			37
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		27.56		15.27			115		0.66	(4)		0.33	(4)		0.67	(4)		0.32	(4)		21
Year ended 3-31-2018		23.91		24.00			100		0.72			0.30			—			—			37
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 9-30-2018 (unaudited)		25.03		14.82			22		1.41	(4)		-0.43	(4)		—			—			21
Year ended 3-31-2018		21.79		23.06			23		1.46			-0.42			—			—			37
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		26.74		15.06			41		1.04	(4)		-0.05	(4)		1.07	(4)		-0.08	(4)		21
Year ended 3-31-2018		23.24		23.57			37		1.05			-0.01			1.11			-0.07			37
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

(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.

(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.

2018 SEMIANNUAL REPORT 161

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 9-30-2018 (unaudited)	$	10.64	$	0.10	$	(0.04	)	$	0.06		$	(0.10	)	$	—		$	(0.10	)
Year ended 3-31-2018		10.80		0.18		(0.15	)		0.03			(0.19	)		—			(0.19	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		10.64		0.05		(0.03	)		0.02			(0.06	)		—			(0.06	)
Year ended 3-31-2018		10.80		0.08		(0.15	)		(0.07	)		(0.09	)		—			(0.09	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		10.64		0.06		(0.04	)		0.02			(0.06	)		—			(0.06	)
Year ended 3-31-2018		10.80		0.10		(0.15	)		(0.05	)		(0.11	)		—			(0.11	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		10.64		0.10		(0.04	)		0.06			(0.10	)		—			(0.10	)
Year ended 3-31-2018		10.80		0.17		(0.14	)		0.03			(0.19	)		—			(0.19	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		10.64		0.11		(0.04	)		0.07			(0.11	)		—			(0.11	)
Year ended 3-31-2018		10.80		0.21		(0.16	)		0.05			(0.21	)		—			(0.21	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		10.64		0.12		(0.04	)		0.08			(0.12	)		—			(0.12	)
Year ended 3-31-2018		10.80		0.22		(0.15	)		0.07			(0.23	)		—			(0.23	)
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 9-30-2018 (unaudited)		10.64		0.08		(0.04	)		0.04			(0.08	)		—			(0.08	)
Year ended 3-31-2018		10.80		0.14		(0.15	)		(0.01	)		(0.15	)		—			(0.15	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		10.64		0.10		(0.04	)		0.06			(0.10	)		—			(0.10	)
Year ended 3-31-2018		10.80		0.18		(0.15	)		0.03			(0.19	)		—			(0.19	)
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	)

* 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.

162 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	10.60		0.59	%	$	382			0.91	%(4)		1.87	%(4)		—	%		—	%		40	%
Year ended 3-31-2018		10.64		0.25			431			0.89			1.69			—			—			24
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		10.60		0.16			4			1.76	(4)		1.02	(4)		—			—			40
Year ended 3-31-2018		10.64		-0.65			6			1.80			0.78			—			—			24
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		10.60		0.22			44			1.65	(4)		1.13	(4)		—			—			40
Year ended 3-31-2018		10.64		-0.51			55			1.66			0.92			—			—			24
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		10.60		0.56			4			0.97	(4)		1.81	(4)		1.04	(4)		1.74	(4)		40
Year ended 3-31-2018		10.64		0.17			4			0.98			1.60			1.02			1.56			24
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		10.60		0.71			697			0.68	(4)		2.11	(4)		—			—			40
Year ended 3-31-2018		10.64		0.49			710			0.66			1.92			—			—			24
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		10.60		0.79			161			0.52	(4)		2.27	(4)		—			—			40
Year ended 3-31-2018		10.64		0.64			85			0.50			2.08			—			—			24
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 9-30-2018 (unaudited)		10.60		0.42			1			1.26	(4)		1.52	(4)		—			—			40
Year ended 3-31-2018		10.64		-0.12			1			1.26			1.32			—			—			24
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		10.60		0.59			10			0.91	(4)		1.86	(4)		0.92	(4)		1.85	(4)		40
Year ended 3-31-2018		10.64		0.25			11			0.89			1.69			0.91			1.67			24
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

(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.

(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.

2018 SEMIANNUAL REPORT 163

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 9-30-2018 (unaudited)	$	11.87	$	0.00	*	$	(0.31	)	$	(0.31	)	$	—		$	—		$	—
Year ended 3-31-2018		10.58		0.14			1.44			1.58			(0.15	)		(0.14	)		(0.29	)
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	)
Class B Shares(6)
Six-month period ended 9-30-2018 (unaudited)		11.61		(0.05	)		(0.31	)		(0.36	)		—			—			—
Year ended 3-31-2018		10.35		0.03			1.44			1.47			(0.07	)		(0.14	)		(0.21	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		11.64		(0.04	)		(0.31	)		(0.35	)		—			—			—
Year ended 3-31-2018		10.38		0.07			1.41			1.48			(0.08	)		(0.14	)		(0.22	)
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	)
Class E Shares(7)
Six-month period ended 9-30-2018 (unaudited)		11.89		0.01			(0.32	)		(0.31	)		—			—			—
Year ended 3-31-2018		10.59		0.15			1.44			1.59			(0.15	)		(0.14	)		(0.29	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		11.93		0.02			(0.31	)		(0.29	)		—			—			—
Year ended 3-31-2018		10.63		0.18			1.43			1.61			(0.17	)		(0.14	)		(0.31	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		11.94		0.02			(0.31	)		(0.29	)		—			—			—
Year ended 3-31-2018(5)(8)		11.17		0.17			0.90			1.07			(0.16	)		(0.14	)		(0.30	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		11.83		(0.01	)		(0.30	)		(0.31	)		—			—			—
Year ended 3-31-2018		10.55		0.13			1.42			1.55			(0.13	)		(0.14	)		(0.27	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		11.87		0.01			(0.31	)		(0.30	)		—			—			—
Year ended 3-31-2018		10.58		0.15			1.43			1.58			(0.15	)		(0.14	)		(0.29	)
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	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

(3) Does not include expenses of underlying Ivy Funds in which the Fund invests.

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

164 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	11.56		-2.61	%	$	77			0.49	%(5)		0.05	%(5)		0.50	%(5)		0.04	%(5)		34	%
Year ended 3-31-2018		11.87		14.95			84			0.49			1.17			0.49			1.17			10
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
Class B Shares(6)
Six-month period ended 9-30-2018 (unaudited)		11.25		-3.10			—	*		1.40	(5)		-0.88	(5)		1.59	(5)		-1.07	(5)		34
Year ended 3-31-2018		11.61		14.28			1			1.40			0.24			1.47			0.17			10
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		11.29		-3.01			3			1.29	(5)		-0.75	(5)		—			—			34
Year ended 3-31-2018		11.64		14.34			3			1.28			0.57			—			—			10
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
Class E Shares(7)
Six-month period ended 9-30-2018 (unaudited)		11.58		-2.61			1			0.41	(5)		0.14	(5)		—			—			34
Year ended 3-31-2018		11.89		15.11			1			0.39			1.30			0.40			1.29			10
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		11.64		-2.43			116			0.16	(5)		0.37	(5)		0.18	(5)		0.35	(5)		34
Year ended 3-31-2018		11.93		15.23			142			0.16			1.55			0.18			1.53			10
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		11.65		-2.43			—	*		0.16	(5)		0.38	(5)		—			—			34
Year ended 3-31-2018(8)		11.94		9.67			—	*		0.15	(5)		1.89	(5)		—			—			10	(9)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		11.52		-2.62			1			0.66	(5)		-0.12	(5)		—			—			34
Year ended 3-31-2018		11.83		14.77			1			0.66			1.12			—			—			10
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		11.57		-2.53			1			0.38	(5)		0.15	(5)		0.42	(5)		0.11	(5)		34
Year ended 3-31-2018		11.87		15.03			1			0.38			1.30			0.40			1.28			10
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

(5) Annualized.

(6) These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund.

(7) Class share is closed to investment.

(8) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(9) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 165

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 9-30-2018 (unaudited)	$	26.19	$	(0.19	)	$	7.49		$	7.30		$	—	$	—		$	—
Year ended 3-31-2018		23.67		(0.32	)		2.84			2.52			—		—			—
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	)
Class B Shares(4)
Six-month period ended 9-30-2018 (unaudited)		24.35		(0.31	)		6.95			6.64			—		—			—
Year ended 3-31-2018		22.21		(0.51	)		2.65			2.14			—		—			—
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		24.79		(0.29	)		7.08			6.79			—		—			—
Year ended 3-31-2018		22.58		(0.48	)		2.69			2.21			—		—			—
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		26.97		(0.15	)		7.71			7.56			—		—			—
Year ended 3-31-2018		24.28		(0.23	)		2.92			2.69			—		—			—
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		27.18		(0.12	)		7.77			7.65			—		—			—
Year ended 3-31-2018		24.43		(0.19	)		2.94			2.75			—		—			—
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 9-30-2018 (unaudited)		26.00		(0.23	)		7.43			7.20			—		—			—
Year ended 3-31-2018		23.55		(0.36	)		2.81			2.45			—		—			—
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		27.12		(0.18	)		7.76			7.58			—		—			—
Year ended 3-31-2018		24.47		(0.29	)		2.94			2.65			—		—			—
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	)

* 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.

(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.

166 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	33.49		27.82	%	$	104			1.60	%(3)		-1.22	%(3)		11	%
Year ended  3-31-2018		26.19		10.69			77			1.63			-1.27			26
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
Class B Shares(4)
Six-month period ended 9-30-2018 (unaudited)		30.99		27.27			2			2.53	(3)		-2.15	(3)		11
Year ended 3-31-2018		24.35		9.64			1			2.57			-2.20			26
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		31.58		27.39			8			2.35	(3)		-1.97	(3)		11
Year ended 3-31-2018		24.79		9.79			6			2.40			-2.04			26
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		34.53		28.03			87			1.30	(3)		-0.92	(3)		11
Year ended 3-31-2018		26.97		11.08			68			1.27			-0.91			26
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		34.83		28.15			5			1.13	(3)		-0.74	(3)		11
Year ended 3-31-2018		27.18		11.26			2			1.12			-0.73			26
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 9-30-2018 (unaudited)		33.20		27.68			1			1.86	(3)		-1.48	(3)		11
Year ended 3-31-2018		26.00		10.45			—	*		1.84			-1.46			26
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		34.70		27.90			1			1.51	(3)		-1.13	(3)		11
Year ended 3-31-2018		27.12		10.87			1			1.49			-1.13			26
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

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 167

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 9-30-2018 (unaudited)	$	23.99	$	(0.07	)	$	3.78		$	3.71		$	—	$	—		$	—
Year ended 3-31-2018		20.81		(0.11	)		5.11			5.00			—		(1.82	)		(1.82	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		19.11		(0.14	)		3.01			2.87			—		—			—
Year ended 3-31-2018		17.02		(0.23	)		4.14			3.91			—		(1.82	)		(1.82	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		20.44		(0.14	)		3.22			3.08			—		—			—
Year ended 3-31-2018		18.09		(0.24	)		4.41			4.17			—		(1.82	)		(1.82	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		23.41		(0.07	)		3.68			3.61			—		—			—
Year ended 3-31-2018		20.34		(0.11	)		5.00			4.89			—		(1.82	)		(1.82	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		25.83		(0.03	)		4.07			4.04			—		—			—
Year ended 3-31-2018		22.23		(0.05	)		5.47			5.42			—		(1.82	)		(1.82	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		26.02		(0.02	)		4.11			4.09			—		—			—
Year ended 3-31-2018		22.35		(0.01	)		5.50			5.49			—		(1.82	)		(1.82	)
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 9-30-2018 (unaudited)		23.40		(0.11	)		3.68			3.57			—		—			—
Year ended 3-31-2018		20.40		(0.18	)		5.00			4.82			—		(1.82	)		(1.82	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		25.06		(0.07	)		3.95			3.88			—		—			—
Year ended 3-31-2018		21.66		(0.10	)		5.32			5.22			—		(1.82	)		(1.82	)
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	)

* 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 2018

	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 9-30-2018 (unaudited)	$	27.70		15.46	%	$	1,761		1.24	%(4)		-0.54	%(4)		1.25	%(4)		-0.55	%(4)		15	%
Year ended 3-31-2018		23.99		24.56			1,600		1.31	(9)		-0.48			1.31			-0.48			26
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		21.98		14.96			20		2.08	(4)		-1.38	(4)		2.11	(4)		-1.41	(4)		15
Year ended 3-31-2018		19.11		23.66			20		2.09			-1.26			—			—			26
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		23.52		15.07			228		1.94	(4)		-1.24	(4)		1.95	(4)		-1.25	(4)		15
Year ended 3-31-2018		20.44		23.64			203		2.02			-1.20			—			—			26
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		27.02		15.42			12		1.29	(4)		-0.59	(4)		1.46	(4)		-0.76	(4)		15
Year ended 3-31-2018		23.41		24.59			11		1.30			-0.48			1.57			-0.75			26
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		29.87		15.64			2,080		0.93	(4)(8)		-0.23	(4)		1.01	(4)		-0.31	(4)		15
Year ended 3-31-2018		25.83		24.89			1,869		1.03			-0.20			—			—			26
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		30.11		15.72			328		0.82	(4)		-0.12	(4)		0.84	(4)		-0.14	(4)		15
Year ended 3-31-2018		26.02		25.07			135		0.88			-0.05			—			—			26
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 9-30-2018 (unaudited)		26.97		15.26			66		1.57	(4)		-0.86	(4)		1.58	(4)		-0.87	(4)		15
Year ended 3-31-2018		23.40		24.17			50		1.63			-0.80			—			—			26
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		28.94		15.48			278		1.22	(4)		-0.52	(4)		1.23	(4)		-0.53	(4)		15
Year ended 3-31-2018		25.06		24.61			259		1.27			-0.44			—			—			26
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

(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.

(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) Expense ratio based on the period excluding reorganization expense was 0.92%.

(9) Expense ratio based on the period excluding reorganization expenses was 1.30%.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 169

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 9-30-2018 (unaudited)	$	13.76	$	0.11	$	1.12		$	1.23		$	(0.10	)	$	—		$	(0.10	)
Year ended 3-31-2018		12.68		0.18		1.08			1.26			(0.18	)		—			(0.18	)
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(5)		10.00		0.10		1.05			1.15			(0.05	)		—	*		(0.05	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		13.70		0.06		1.11			1.17			(0.04	)		—			(0.04	)
Year ended 3-31-2018		12.62		0.08		1.08			1.16			(0.08	)		—			(0.08	)
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(5)		10.00		0.05		1.07			1.12			(0.02	)		—	*		(0.02	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		13.77		0.13		1.11			1.24			(0.11	)		—			(0.11	)
Year ended 3-31-2018		12.68		0.20		1.09			1.29			(0.20	)		—			(0.20	)
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(5)		10.00		0.09		1.07			1.16			(0.05	)		—	*		(0.05	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		13.78		0.14		1.11			1.25			(0.12	)		—			(0.12	)
Year ended 3-31-2018		12.70		0.21		1.09			1.30			(0.22	)		—			(0.22	)
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(5)		10.00		0.10		1.08			1.18			(0.07	)		—	*		(0.07	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		13.78		0.14		1.12			1.26			(0.12	)		—			(0.12	)
Year ended 3-31-2018		12.70		0.23		1.09			1.32			(0.24	)		—			(0.24	)
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(5)		10.00		0.10		1.08			1.18			(0.07	)		—	*		(0.07	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		13.74		0.09		1.11			1.20			(0.07	)		—			(0.07	)
Year ended 3-31-2018		12.65		0.13		1.09			1.22			(0.13	)		—			(0.13	)
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(5)		10.00		0.06		1.07			1.13			(0.03	)		—	*		(0.03	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		13.76		0.12		1.11			1.23			(0.10	)		—			(0.10	)
Year ended 3-31-2018		12.68		0.18		1.08			1.26			(0.18	)		—			(0.18	)
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(5)		10.00		0.09		1.07			1.16			(0.05	)		—	*		(0.05	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

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

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

(4) Annualized.

(5) For the period from October 1, 2014 (commencement of operations of the class) through March 31, 2015.

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

(7) Ratio of expenses to average net assets excluding offering cost was 1.31%.

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

170 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	14.89		8.91	%	$	111		1.35	%(4)		1.59	%(4)		1.39	%(4)		1.55	%(4)		8	%
Year ended 3-31-2018		13.76		9.98			103		1.35			1.34			1.40			1.29			42
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(5)		11.10		11.56			43		1.35	(4)(8)		1.83	(4)		1.60	(4)		1.58	(4)		10	(6)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		14.83		8.49			12		2.07	(4)		0.87	(4)		2.14	(4)		0.80	(4)		8
Year ended 3-31-2018		13.70		9.30			11		2.07			0.63			2.17			0.53			42
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(5)		11.10		11.26			3		2.07	(4)(10)		0.98	(4)		2.22	(4)		0.83	(4)		10	(6)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		14.90		9.00			3		1.19	(4)		1.75	(4)		—			—			8
Year ended 3-31-2018		13.77		10.25			3		1.18			1.50			—			—			42
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(5)		11.11		11.68			2		1.30	(4)(12)		1.70	(4)		1.42	(4)		1.58	(4)		10	(6)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		14.91		9.06			216		1.05	(4)		1.90	(4)		1.12	(4)		1.83	(4)		8
Year ended 3-31-2018		13.78		10.30			166		1.05			1.62			1.12			1.55			42
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(5)		11.11		11.81			9		1.05	(4)(14)		1.97	(4)		1.32	(4)		1.70	(4)		10	(6)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		14.92		9.17			55		0.95	(4)		1.99	(4)		—			—			8
Year ended 3-31-2018		13.78		10.43			48		0.95			1.70			—			—			42
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(5)		11.11		11.81			3		1.05	(4)(16)		1.97	(4)		1.18	(4)		1.84	(4)		10	(6)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		14.87		8.75			3		1.69	(4)		1.25	(4)		—			—			8
Year ended 3-31-2018		13.74		9.66			3		1.68			1.00			—			—			42
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(5)		11.10		11.38			2		1.80	(4)(18)		1.20	(4)		1.92	(4)		1.08	(4)		10	(6)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		14.89		8.91			9		1.35	(4)		1.62	(4)		—			—			8
Year ended 3-31-2018		13.76		9.99			6		1.35			1.33			1.36			1.32			42
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(5)		11.11		11.66			4		1.35	(4)(20)		1.73	(4)		1.57	(4)		1.51	(4)		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.

2018 SEMIANNUAL REPORT 171

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 9-30-2018 (unaudited)	$	11.72	$	0.20	$	(0.15	)	$	0.05		$	(0.20	)	$	—	$	(0.20	)
Year ended 3-31-2018		11.82		0.42		(0.15	)		0.27			(0.37	)		—		(0.37	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		11.72		0.16		(0.14	)		0.02			(0.17	)		—		(0.17	)
Year ended 3-31-2018		11.82		0.29		(0.13	)		0.16			(0.26	)		—		(0.26	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		11.72		0.15		(0.14	)		0.01			(0.16	)		—		(0.16	)
Year ended 3-31-2018		11.82		0.29		(0.13	)		0.16			(0.26	)		—		(0.26	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		11.72		0.21		(0.14	)		0.07			(0.22	)		—		(0.22	)
Year ended 3-31-2018		11.82		0.43		(0.15	)		0.28			(0.38	)		—		(0.38	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		11.72		0.21		(0.14	)		0.07			(0.22	)		—		(0.22	)
Year ended 3-31-2018(6)		11.90		0.33		(0.21	)		0.12			(0.30	)		—		(0.30	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		11.72		0.20		(0.14	)		0.06			(0.21	)		—		(0.21	)
Year ended 3-31-2018		11.82		0.38		(0.12	)		0.26			(0.36	)		—		(0.36	)
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	)

(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.

172 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	11.57		0.44	%	$	486		0.84	%(4)		3.42	%(4)		0.91	%(4)		3.35	%(4)		2	%
Year ended 3-31-2018		11.72		2.28			523		0.87	(8)		3.52			0.92			3.47			0
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		11.57		0.17			2		1.58	(4)		2.66	(4)		—			—			2
Year ended 3-31-2018		11.72		1.38			2		1.74			2.44			—			—			0
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		11.57		0.11			21		1.71	(4)		2.55	(4)		—			—			2
Year ended 3-31-2018		11.72		1.39			24		1.74			2.46			—			—			0
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		11.57		0.62			317		0.70	(4)		3.55	(4)		0.74	(4)		3.51	(4)		2
Year ended 3-31-2018		11.72		2.36			326		0.75	(9)		3.58			0.75			3.58			0
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		11.57		0.63			1		0.60	(4)		3.65	(4)		—			—			2
Year ended 3-31-2018(6)		11.72		1.09			1		0.60	(4)		3.74	(4)		—			—			0	(7)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		11.57		0.50			1		0.84	(4)		3.41	(4)		0.98	(4)		3.27	(4)		2
Year ended 3-31-2018		11.72		2.23			1		0.90	(8)		3.22			1.02			3.10			0
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

(6) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

(8) Expense ratio based on the period excluding reorganization expense was 0.86%.

(9) Expense ratio based on the period excluding reorganization expenses was 0.74%.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 173

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 9-30-2018 (unaudited)	$	5.05	$	0.11	$	(0.04	)	$	0.07		$	(0.11	)	$	—		$	(0.11	)
Year ended 3-31-2018		5.09		0.16		0.00	*		0.16			(0.20	)		—	*		(0.20	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		5.05		0.10		(0.04	)		0.06			(0.10	)		—			(0.10	)
Year ended 3-31-2018		5.09		0.18		(0.05	)		0.13			(0.17	)		—	*		(0.17	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		5.05		0.10		(0.04	)		0.06			(0.10	)		—			(0.10	)
Year ended 3-31-2018		5.09		0.19		(0.06	)		0.13			(0.17	)		—	*		(0.17	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		5.05		0.12		(0.04	)		0.08			(0.12	)		—			(0.12	)
Year ended 3-31-2018		5.09		0.23		(0.06	)		0.17			(0.21	)		—	*		(0.21	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		5.05		0.12		(0.04	)		0.08			(0.12	)		—			(0.12	)
Year ended 3-31-2018(6)		5.11		0.17		(0.07	)		0.10			(0.16	)		—	*		(0.16	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		5.05		0.11		(0.03	)		0.08			(0.12	)		—			(0.12	)
Year ended 3-31-2018		5.09		0.23		(0.07	)		0.16			(0.20	)		—	*		(0.20	)
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	)

* 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.

174 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	5.01		1.46	%	$	685			0.87	%(4)		4.48	%(4)		—	%		—	%		3	%
Year ended 3-31-2018		5.05		3.35			732			0.88			3.17			—			—			3
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		5.01		1.16			7			1.56	(4)		3.80	(4)		1.56	(4)		3.80	(4)		3
Year ended 3-31-2018		5.05		2.57			9			1.62			3.63			1.72			3.53			3
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		5.01		1.14			123			1.58	(4)		3.78	(4)		1.63	(4)		3.73	(4)		3
Year ended 3-31-2018		5.05		2.61			143			1.58			3.67			1.64			3.61			3
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		5.01		1.60			448			0.66	(4)		4.70	(4)		0.71	(4)		4.65	(4)		3
Year ended 3-31-2018		5.05		3.56			520			0.68	(8)		4.49			0.72			4.45			3
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		5.01		1.66			1			0.56	(4)		4.76	(4)		—			—			3
Year ended 3-31-2018(6)		5.05		2.07			—	*		0.58	(4)		4.55	(4)		—			—			3	(7)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		5.01		1.50			8			0.87	(4)		4.49	(4)		0.96	(4)		4.40	(4)		3
Year ended 3-31-2018		5.05		3.35			10			0.88			4.44			0.98			4.34			3
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

(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.

(6) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

(8) Expense ratio based on the period excluding reorganization expenses was 0.67%.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 175

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY PZENA INTERNATIONAL 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 9-30-2018 (unaudited)	$	18.08	$	0.09		$	0.21		$	0.30		$	—		$	—	$	—
Year ended 3-31-2018		17.15		0.08			1.00			1.08			(0.15	)		—		(0.15	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		16.34		(0.05	)		0.19			0.14			—			—		—
Year ended 3-31-2018		15.58		(0.14	)		0.90			0.76			—			—		—
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			—			—		—
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		16.99		0.04			0.20			0.24			—			—		—
Year ended 3-31-2018		16.12		(0.03	)		0.94			0.91			(0.04	)		—		(0.04	)
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			—			—		—
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		18.48		0.14			0.21			0.35			—			—		—
Year ended 3-31-2018		17.53		0.17			1.01			1.18			(0.23	)		—		(0.23	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		18.53		0.20			0.16			0.36			—			—		—
Year ended 3-31-2018		17.57		0.21			1.01			1.22			(0.26	)		—		(0.26	)
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 9-30-2018 (unaudited)		18.05		0.08			0.21			0.29			—			—		—
Year ended 3-31-2018		17.13		0.06			0.99			1.05			(0.13	)		—		(0.13	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		18.33		0.11			0.21			0.32			—			—		—
Year ended 3-31-2018		17.39		0.12			1.01			1.13			(0.19	)		—		(0.19	)
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	)

* 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.

176 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	18.38		1.66	%	$	90			1.58	%(4)		1.02	%(4)		1.76	%(4)		0.84	%(4)		80	%
Year ended 3-31-2018		18.08		6.30			96			1.59			0.47			1.75			0.31			33
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		16.48		0.86			—	*		3.18	(4)		-0.58	(4)		3.36	(4)		-0.76	(4)		80
Year ended 3-31-2018		16.34		4.88			1			2.96			-0.86			3.12			-1.02			33
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		17.23		1.41			3			2.14	(4)		0.43	(4)		2.33	(4)		0.24	(4)		80
Year ended 3-31-2018		16.99		5.65			3			2.19			-0.18			2.35			-0.34			33
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		18.83		1.95			108			1.16	(4)		1.45	(4)		1.34	(4)		1.27	(4)		80
Year ended 3-31-2018		18.48		6.73			77			1.16			0.91			1.32			0.75			33
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		18.89		1.94			101			0.92	(4)		2.15	(4)		1.11	(4)		1.96	(4)		80
Year ended 3-31-2018		18.53		6.94			—	*		0.99			1.18			1.15			1.02			33
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 9-30-2018 (unaudited)		18.34		1.61			—	*		1.73	(4)		0.87	(4)		1.92	(4)		0.68	(4)		80
Year ended 3-31-2018		18.05		6.13			—	*		1.72			0.32			1.88			0.16			33
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		18.65		1.80			2			1.40	(4)		1.19	(4)		1.59	(4)		1.00	(4)		80
Year ended 3-31-2018		18.33		6.48			2			1.39			0.66			1.55			0.50			33
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

(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.

(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.

2018 SEMIANNUAL REPORT 177

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SECURIAN CORE 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 9-30-2018 (unaudited)	$	10.57	$	0.15	$	(0.14	)	$	0.01		$	(0.16	)	$	—	$	(0.16	)
Year ended 3-31-2018		10.62		0.28		(0.04	)		0.24			(0.29	)		—		(0.29	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		10.57		0.11		(0.14	)		(0.03	)		(0.12	)		—		(0.12	)
Year ended 3-31-2018		10.62		0.18		(0.04	)		0.14			(0.19	)		—		(0.19	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		10.57		0.12		(0.15	)		(0.03	)		(0.12	)		—		(0.12	)
Year ended 3-31-2018		10.62		0.20		(0.04	)		0.16			(0.21	)		—		(0.21	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		10.57		0.15		(0.14	)		0.01			(0.16	)		—		(0.16	)
Year ended 3-31-2018		10.62		0.28		(0.04	)		0.24			(0.29	)		—		(0.29	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		10.57		0.18		(0.15	)		0.03			(0.18	)		—		(0.18	)
Year ended 3-31-2018		10.62		0.33		(0.04	)		0.29			(0.34	)		—		(0.34	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		10.57		0.18		(0.15	)		0.03			(0.18	)		—		(0.18	)
Year ended 3-31-2018		10.62		0.33		(0.04	)		0.29			(0.34	)		—		(0.34	)
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 9-30-2018 (unaudited)		10.57		0.14		(0.15	)		(0.01	)		(0.14	)		—		(0.14	)
Year ended 3-31-2018		10.62		0.25		(0.03	)		0.22			(0.27	)		—		(0.27	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		10.57		0.16		(0.15	)		0.01			(0.16	)		—		(0.16	)
Year ended 3-31-2018		10.62		0.29		(0.04	)		0.25			(0.30	)		—		(0.30	)
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	)

* 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.

178 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	10.42		0.05	%	$	176			1.04	%(4)		2.85	%(4)		1.08	%(4)		2.81	%(4)		45	%
Year ended 3-31-2018		10.57		2.26			200			1.04			2.60			1.07			2.57			163
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		10.42		-0.33			3			1.80	(4)		2.10	(4)		1.83	(4)		2.07	(4)		45
Year ended 3-31-2018		10.57		1.33			3			1.96			1.68			1.99			1.65			163
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		10.42		-0.28			13			1.70	(4)		2.20	(4)		1.73	(4)		2.17	(4)		45
Year ended 3-31-2018		10.57		1.51			16			1.77			1.87			1.80			1.84			163
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		10.42		0.07			4			1.02	(4)		2.88	(4)		1.27	(4)		2.63	(4)		45
Year ended 3-31-2018		10.57		2.27			4			1.03			2.61			1.24			2.40			163
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		10.42		0.31			558			0.54	(4)		3.36	(4)		0.74	(4)		3.16	(4)		45
Year ended 3-31-2018		10.57		2.77			525			0.54			3.10			0.74			2.90			163
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		10.42		0.30			147			0.54	(4)		3.35	(4)		0.58	(4)		3.31	(4)		45
Year ended 3-31-2018		10.57		2.77			195			0.54			3.10			0.58			3.06			163
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 9-30-2018 (unaudited)		10.42		-0.09			1			1.30	(4)		2.59	(4)		1.33	(4)		2.56	(4)		45
Year ended 3-31-2018		10.57		2.04			2			1.29			2.31			1.32			2.28			163
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		10.42		0.10			5			0.94	(4)		2.96	(4)		0.98	(4)		2.92	(4)		45
Year ended 3-31-2018		10.57		2.35			5			0.95			2.69			0.98			2.66			163
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

(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.

(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.

2018 SEMIANNUAL REPORT 179

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 9-30-2018 (unaudited)	$	18.29	$	(0.06	)	$	3.06		$	3.00		$	—		$	—		$	—
Year ended 3-31-2018		17.66		(0.04	)		1.09			1.05			—			(0.42	)		(0.42	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		14.79		(0.11	)		2.46			2.35			—			—			—
Year ended 3-31-2018		14.45		(0.16	)		0.88			0.72			—			(0.38	)		(0.38	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		15.81		(0.11	)		2.64			2.53			—			—			—
Year ended 3-31-2018		15.39		(0.16	)		0.97			0.81			—			(0.39	)		(0.39	)
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	)
Class E Shares(6)
Six-month period ended 9-30-2018 (unaudited)		19.02		(0.03	)		3.18			3.15			—			—			—
Year ended 3-31-2018		18.32		0.00	*		1.14			1.14			—			(0.44	)		(0.44	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		19.79		(0.01	)		3.30			3.29			—			—			—
Year ended 3-31-2018		19.03		0.00	*		1.20			1.20			—			(0.44	)		(0.44	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		19.96		0.00	*		3.33			3.33			—			—			—
Year ended 3-31-2018		19.17		0.03			1.21			1.24			—			(0.45	)		(0.45	)
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(7)		18.96		0.08			1.36			1.44			—			(1.84	)		(1.84	)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		18.18		(0.08	)		3.04			2.96			—			—			—
Year ended 3-31-2018		17.58		(0.11	)		1.12			1.01			—			(0.41	)		(0.41	)
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	)
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		18.33		(0.03	)		3.06			3.03			—			—			—
Year ended 3-31-2018(8)		17.97		(0.08	)		0.86			0.78			—			(0.42	)		(0.42	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		19.20		(0.05	)		3.21			3.16			—			—			—
Year ended 3-31-2018		18.51		(0.03	)		1.15			1.12			—			(0.43	)		(0.43	)
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	)

* 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.

180 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	21.29		16.34	%	$	203			1.41	%(4)		-0.54	%(4)		1.42	%(4)		-0.55	%(4)		54	%
Year ended 3-31-2018		18.29		5.97			186			1.46			-0.24			—			—			119
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		17.14		15.89			3			2.25	(4)		-1.39	(4)		2.26	(4)		-1.40	(4)		54
Year ended 3-31-2018		14.79		4.91			3			2.39			-1.06			—			—			119
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		18.34		16.00			39			2.07	(4)		-1.19	(4)		2.08	(4)		-1.20	(4)		54
Year ended 3-31-2018		15.81		5.21			33			2.14			-0.97			—			—			119
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
Class E Shares(6)
Six-month period ended 9-30-2018 (unaudited)		22.17		16.56			—	*		1.17	(4)		-0.30	(4)		1.18	(4)		-0.31	(4)		54
Year ended 3-31-2018		19.02		6.17			—	*		1.19			-0.01			—			—			119
Year ended 3-31-2017		18.32		28.97			—	*		1.21			—			—			—			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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		23.08		16.63			428			1.01	(4)		-0.13	(4)		1.09	(4)		-0.21	(4)		54
Year ended 3-31-2018		19.79		6.29			333			1.10			-0.02			—			—			119
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			—			—			—			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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		23.29		16.68			67			0.91	(4)		-0.01	(4)		0.93	(4)		-0.03	(4)		54
Year ended 3-31-2018		19.96		6.45			43			0.94			0.16			—			—			119
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(7)		18.56		8.17			3			0.96	(4)		0.70	(4)		—			—			106	(9)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		21.14		16.28			16			1.66	(4)		-0.76	(4)		1.67	(4)		-0.77	(4)		54
Year ended 3-31-2018		18.18		5.69			11			1.68			-0.62			—			—			119
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
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		21.36		16.53			—	*		1.16	(4)		-0.29	(4)		1.17	(4)		-0.30	(4)		54
Year ended 3-31-2018(8)		18.33		4.31			—	*		1.19	(4)		-0.57	(4)		—			—			119	(10)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		22.36		16.46			24			1.33	(4)		-0.44	(4)		1.33	(4)		-0.44	(4)		54
Year ended 3-31-2018		19.20		6.00			18			1.36			-0.16			—			—			119
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

(6) Class 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 July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(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, 2018.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 181

FINANCIAL HIGHLIGHTS IVY FUNDS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SMALL CAP GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Loss(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2018 (unaudited)	$	18.63	$	(0.08	)	$	2.82		$	2.74		$	—		$	—		$	—
Year ended 3-31-2018		17.23		(0.15	)		3.56			3.41			—			(2.01	)		(2.01	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		13.55		(0.13	)		2.05			1.92			—			—			—
Year ended 3-31-2018		13.11		(0.23	)		2.66			2.43			—			(1.99	)		(1.99	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		14.97		(0.12	)		2.26			2.14			—			—			—
Year ended 3-31-2018		14.28		(0.24	)		2.92			2.68			—			(1.99	)		(1.99	)
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	)
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		18.46		(0.08	)		2.79			2.71			—			—			—
Year ended 3-31-2018		17.09		(0.15	)		3.53			3.38			—			(2.01	)		(2.01	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		24.36		(0.06	)		3.68			3.62			—			—			—
Year ended 3-31-2018		21.96		(0.12	)		4.58			4.46			—			(2.06	)		(2.06	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		24.49		(0.05	)		3.72			3.67			—			—			—
Year ended 3-31-2018		22.06		(0.09	)		4.60			4.51			—			(2.08	)		(2.08	)
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 9-30-2018 (unaudited)		18.27		(0.11	)		2.76			2.65			—			—			—
Year ended 3-31-2018		16.97		(0.20	)		3.49			3.29			—			(1.99	)		(1.99	)
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	)
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		18.63		(0.06	)		2.82			2.76			—			—			—
Year ended 3-31-2018(7)		18.21		(0.08	)		2.52			2.44			—			(2.02	)		(2.02	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		23.00		(0.10	)		3.48			3.38			—			—			—
Year ended 3-31-2018		20.85		(0.17	)		4.34			4.17			—			(2.02	)		(2.02	)
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	)

* 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.

182 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	21.37		14.71	%	$	1,141			1.32	%(4)		-0.81	%(4)		—	%		—	%		31	%
Year ended 3-31-2018		18.63		20.69			1,026			1.35			-0.80			—			—			43
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		15.47		14.17			9			2.23	(4)		-1.72	(4)		2.30	(4)		-1.79	(4)		31
Year ended 3-31-2018		13.55		19.67			10			2.23			-1.70			—			—			43
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		17.11		14.29			103			2.03	(4)		-1.52	(4)		2.04	(4)		-1.53	(4)		31
Year ended 3-31-2018		14.97		19.82			99			2.06			-1.57			—			—			43
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
Class E Shares
Six-month period ended 9-30-2018 (unaudited)		21.17		14.68			11			1.35	(4)		-0.84	(4)		1.51	(4)		-1.00	(4)		31
Year ended 3-31-2018		18.46		20.68			10			1.37	(10)		-0.83			1.61			-1.07			43
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		27.98		14.86			937			0.99	(4)		-0.48	(4)		1.04	(4)		-0.53	(4)		31
Year ended 3-31-2018		24.36		21.04			717			1.07			-0.53			—			—			43
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		28.16		14.94			156			0.88	(4)		-0.37	(4)		—			—			31
Year ended 3-31-2018		24.49		21.25			110			0.91			-0.38			—			—			43
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	(8)
Class R Shares
Six-month period ended 9-30-2018 (unaudited)		20.92		14.56			70			1.62	(4)		-1.11	(4)		—			—			31
Year ended 3-31-2018		18.27		20.29			57			1.66			-1.11			—			—			43
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
Class T Shares
Six-month period ended 9-30-2018 (unaudited)		21.39		14.82			—	*		1.12	(4)		-0.61	(4)		—			—			31
Year ended 3-31-2018(7)		18.63		14.29			—	*		1.19	(4)		-0.61	(4)		—			—			43	(9)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		26.38		14.74			172			1.27	(4)		-0.77	(4)		—			—			31
Year ended 3-31-2018		23.00		20.75			141			1.31			-0.77			—			—			43
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

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

(7) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(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, 2018.

(10) Expense ratio based on the period excluding reorganization expenses was 1.36%.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 183

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 9-30-2018 (unaudited)	$	25.69	$	(0.01	)	$	3.76		$	3.75		$	—	$	—		$	—
Year ended 3-31-2018		21.00		0.00	*		4.84			4.84			—		(0.15	)		(0.15	)
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	)
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		24.42		(0.10	)		3.58			3.48			—		—			—
Year ended 3-31-2018		20.13		(0.18	)		4.62			4.44			—		(0.15	)		(0.15	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		24.33		(0.12	)		3.55			3.43			—		—			—
Year ended 3-31-2018		20.06		(0.19	)		4.61			4.42			—		(0.15	)		(0.15	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		26.00		0.01			3.81			3.82			—		—			—
Year ended 3-31-2018		21.22		0.04			4.89			4.93			—		(0.15	)		(0.15	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		26.03		0.03			3.82			3.85			—		—			—
Year ended 3-31-2018(6)		22.01		0.04			4.13			4.17			—		(0.15	)		(0.15	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		25.73		(0.02	)		3.78			3.76			—		—			—
Year ended 3-31-2018		21.04		(0.01	)		4.85			4.84			—		(0.15	)		(0.15	)
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	)

* 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 2018

	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 9-30-2018 (unaudited)	$	29.44		14.60	%	$	334			1.06	%(4)		-0.10	%(4)		—	%		—	%		43	%
Year ended 3-31-2018		25.69		23.12			301			1.07			-0.01			—			—			34
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
Class B Shares(5)
Six-month period ended 9-30-2018 (unaudited)		27.90		14.24			2			1.69	(4)		-0.74	(4)		—			—			43
Year ended 3-31-2018		24.42		22.18			2			1.89			-0.80			—			—			34
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		27.76		14.14			11			1.89	(4)		-0.94	(4)		—			—			43
Year ended 3-31-2018		24.33		22.11			10			1.93			-0.84			—			—			34
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		29.82		14.69			310			0.89	(4)		0.06	(4)		—			—			43
Year ended 3-31-2018		26.00		23.31			275			0.92			0.15			—			—			34
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		29.88		14.79			—	*		0.74	(4)		0.20	(4)		—			—			43
Year ended 3-31-2018(6)		26.03		19.02			—	*		0.78	(4)		0.22	(4)		—			—			34	(7)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		29.49		14.61			1			1.06	(4)		-0.11	(4)		1.13	(4)		-0.18	(4)		43
Year ended 3-31-2018		25.73		23.13			1			1.14	(8)		-0.05			1.19			-0.10			34
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

(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.

(6) For the period from July 5, 2017 (commencement of operations of the class) through March 31, 2018.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2018.

(8) Expense ratio based on the period excluding reorganization expenses was 1.07%.

See Accompanying Notes to Financial Statements.

2018 SEMIANNUAL REPORT 185

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 9-30-2018 (unaudited)	$	23.27	$	0.14		$	2.10		$	2.24		$	(0.07	)	$	—		$	(0.07	)
Year ended 3-31-2018		22.69		0.16			1.23			1.39			(0.26	)		(0.55	)		(0.81	)
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	)
Class B Shares(4)
Six-month period ended 9-30-2018 (unaudited)		21.53		0.02			1.94			1.96			—			—			—
Year ended 3-31-2018		21.12		0.06			1.02			1.08			(0.12	)		(0.55	)		(0.67	)
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	)
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		22.40		0.05			2.02			2.07			—			—			—
Year ended 3-31-2018		21.92		0.15			1.04			1.19			(0.16	)		(0.55	)		(0.71	)
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	)
Class E Shares(5)
Six-month period ended 9-30-2018 (unaudited)		23.37		0.16			2.13			2.29			(0.11	)		—			(0.11	)
Year ended 3-31-2018		22.79		0.37			1.07			1.44			(0.31	)		(0.55	)		(0.86	)
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	)
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		23.38		0.18			2.12			2.30			(0.13	)		—			(0.13	)
Year ended 3-31-2018		22.80		0.24			1.22			1.46			(0.33	)		(0.55	)		(0.88	)
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	)
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		23.45		0.20			2.13			2.33			(0.16	)		—			(0.16	)
Year ended 3-31-2018		22.86		0.41			1.10			1.51			(0.37	)		(0.55	)		(0.92	)
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 9-30-2018 (unaudited)		23.22		0.10			2.10			2.20			(0.02	)		—			(0.02	)
Year ended 3-31-2018		22.66		0.26			1.06			1.32			(0.21	)		(0.55	)		(0.76	)
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	)
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		23.31		0.14			2.13			2.27			(0.09	)		—			(0.09	)
Year ended 3-31-2018		22.73		0.34			1.05			1.39			(0.26	)		(0.55	)		(0.81	)
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	)

* 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.

(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.

186 SEMIANNUAL REPORT 2018

	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 9-30-2018 (unaudited)	$	25.44		9.69	%	$	392			1.21	%(3)		1.12	%(3)		23	%
Year ended 3-31-2018		23.27		6.13			398			1.23	(8)		0.65			72
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
Class B Shares(4)
Six-month period ended 9-30-2018 (unaudited)		23.49		9.15			2			2.17	(3)		0.19	(3)		23
Year ended 3-31-2018		21.53		5.12			3			2.25	(9)		0.26			72
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
Class C Shares
Six-month period ended 9-30-2018 (unaudited)		24.47		9.29			18			1.93	(3)		0.41	(3)		23
Year ended 3-31-2018		22.40		5.41			18			1.95	(10)		0.68			72
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
Class E Shares(5)
Six-month period ended 9-30-2018 (unaudited)		25.55		9.81			—	*		1.01	(3)		1.33	(3)		23
Year ended 3-31-2018		23.37		6.34			—	*		1.03	(11)		1.57			72
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
Class I Shares
Six-month period ended 9-30-2018 (unaudited)		25.55		9.83			651			0.91	(3)		1.43	(3)		23
Year ended 3-31-2018		23.38		6.45			600			0.94	(12)		1.01			72
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
Class N Shares
Six-month period ended 9-30-2018 (unaudited)		25.62		9.93			160			0.76	(3)		1.64	(3)		23
Year ended 3-31-2018		23.45		6.65			149			0.78	(13)		1.72			72
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 9-30-2018 (unaudited)		25.40		9.52			—	*		1.53	(3)		0.81	(3)		23
Year ended 3-31-2018		23.22		5.85			—	*		1.53	(14)		1.13			72
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
Class Y Shares
Six-month period ended 9-30-2018 (unaudited)		25.49		9.72			1			1.15	(3)		1.17	(3)		23
Year ended 3-31-2018		23.31		6.12			1			1.22	(15)		1.43			72
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

(8) Expense ratio based on the period excluding reorganization expenses was 1.21%.

(9) Expense ratio based on the period excluding reorganization expenses was 2.23%.

(10) Expense ratio based on the period excluding reorganization expenses was 1.94%.

(11) Expense ratio based on the period excluding reorganization expenses was 1.02%.

(12) Expense ratio based on the period excluding reorganization expenses was 0.92%.

(13) Expense ratio based on the period excluding reorganization expenses was 0.77%.

(14) Expense ratio based on the period excluding reorganization expenses was 1.52%.

(15) Expense ratio based on the period excluding reorganization expenses was 1.21%.

See Accompanying Notes to Financial Statements.

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NOTES TO FINANCIAL STATEMENTS IVY FUNDS

SEPTEMBER 30, 2018 (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 Core Equity 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 Pzena International Value Fund (formerly known as Ivy Cundill Global Value Fund), Ivy Securian Core Bond Fund (formerly known as Ivy Advantus Bond Fund), Ivy Small Cap Core Fund, Ivy Small Cap Growth Fund, Ivy Tax-Managed Equity Fund and Ivy Value Fund (each, a “Fund”) are 24 series of the Trust and are the only series of the Trust included in these financial statements. The investment objective(s), policies and risk factors of each Fund are described more fully in the Funds’ Prospectus and Statement of Additional Information (“SAI”). Each Fund’s investment manager is Ivy Investment Management Company (“IICO” or the “Manager”).

Each Fund offers Class A, Class C and Class N 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 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. With certain exceptions described in the Prospectus, Class B shares will automatically convert to Class A shares 96 months after the date of purchase. With certain exceptions described in the Prospectus, Class C shares will automatically convert to Class A shares 120 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.

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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

2018 SEMIANNUAL REPORT 189

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.

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.

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

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

New Rule Issuance. In March 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Management is currently evaluating the implication of this amendment and its impact to the Funds’ financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-13 which changes the fair value measurement disclosure requirements of ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the implication of this amendment and its impact to the Funds’ financial statements and related disclosures.

In October 2018, the Securities Exchange Commission (“Commission”) adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other Commission disclosure requirements, U.S. GAAP, or changes in the information environment. We are also referring certain Commission disclosure requirements that overlap with, but require information incremental to, U.S. GAAP to the FASB for potential incorporation into U.S. GAAP. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The amendments are effective November 2018. Management is currently evaluating the implication of these amendments and their impact to the Funds’ financial statements and related disclosures.

Subsequent Events. The Board approved a Reorganization Plan, in which the Ivy European Opportunities Fund, Ivy Micro Cap Growth Fund and Ivy Tax-Managed Equity Fund (the “Target Funds”) were reorganized into Ivy International Core Equity Fund, Ivy Small Cap Growth Fund and Ivy Large Cap Growth Fund (the “Acquiring Funds”), respectively. This means that the Acquiring Funds received all of the assets and liabilities of the corresponding Target Fund in exchange for shares of the Acquiring Fund. Each Target Fund, in turn, distributed those Acquiring Fund shares to its shareholders in liquidation and shareholders of a Target Fund became shareholders of the corresponding Acquiring Fund. The reorganization was effective November 5, 2018.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Each Fund’s investments are reported at fair value. Fair value is defined as the price that each Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Each Fund calculates the NAV of its shares as of the close of the NYSE, normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

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

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

Investments in Ivy 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.

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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.

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.

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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, which 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. Exchange-traded futures contracts 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 for a comparable listed option provided by an independent pricing service unless such a price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer.

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

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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, 2018, 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.

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 are 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. 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 Core Equity Fund, Ivy European Opportunities Fund, Ivy Global Equity Income Fund, Ivy Global Income Allocation Fund and Ivy High Income 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).

194 SEMIANNUAL REPORT 2018

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 amounts, known as variation margin, are paid or received by the Fund each day, dependent on the daily fluctuations in the value of the underlying debt security or index. Options in futures contracts may also be purchased or sold by a Fund.

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 Municipal Bond Fund, Ivy Securian Core Bond Fund and Ivy Small Cap Core 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 the underlying 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.

Option contracts can be traded on a regulated exchange or traded OTC. Unlike the trades on a regulated exchange where the clearinghouse guarantees the performances of both the buyer and the seller, 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.

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. An early termination payment received or made at an early termination or maturity of the swap is recorded as realized gain or loss on the Statement of Operations.

Total return swaps involve a commitment of one party to pay 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, a basket of securities, or an index 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 European Opportunities Fund, Ivy International Core Equity Fund and Ivy Small Cap Growth Fund enter into total return swaps to hedge exposure to a security or market.

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The creditworthiness of the counterparty with which a Fund enters into a swap agreement is monitored by IICO. If a counterparty 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 due to facts specific to certain situations (i.e., collateral may not have been posted by the counterparty due to the required collateral amount being less than the pre-agreed thresholds. Additionally, regulatory developments called stay resolutions and the ensuing required contractual amendments to the transactional documentation, including derivatives, permit the relevant regulators to preclude parties to a transaction from terminating trades, among other rights it may have in the trade agreements should a counterparty that it regulates experience financial distress. A relevant regulator also has the authority to reduce the value of certain liabilities owed by the counterparty to a Fund and/or convert cash liabilities of a regulated entity into equity holdings. The power given to the relevant regulators includes the ability to amend transactional agreements unilaterally, modify the maturity of eligible liabilities, reduce the amount of interest payable or change the date on which interest becomes payable, among other powers.

To prevent incurring losses due to the counterparty credit risk, IICO actively monitors the creditworthiness of the counterparties with which it has entered financial transactions. IICO consistently and frequently risk manages the credit risk of the counterparties it faces in transactions.

Collateral and rights of offset. A Fund mitigates 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 all OTC derivative transactions between the Fund and each of its counterparties. Although it is not possible to eliminate credit risk entirely, the CSA allows the Fund and its counterparty to reduce their exposure to the risk of payment default by the other party by holding an amount in collateral equivalent to the realized and unrealized amount of exposure to the counterparty, which is generally held by the Fund’s custodian. An amount of collateral is moved to/from applicable counterparties only if the amount of collateral required to be posted surpasses both the threshold and the minimum transfer amount pre-agreed in the CSA between the Fund and the counterparty. 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, 2018:

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 Core Equity Fund
Unrealized appreciation on forward foreign currency contracts	$	870	$	—	$	870	$	(56	)	$	—	$	—	$	814
Ivy Global Income Allocation Fund
Unrealized appreciation on forward foreign currency contracts	$	246	$	—	$	246	$	—		$	—	$	—	$	246
Ivy High Income Fund
Unrealized appreciation on forward foreign currency contracts(1)	$	158	$	—	$	158	$	(87	)	$	—	$	—	$	71
Ivy Mid Cap Growth Fund
Investments in unaffiliated securities at value*	$	106	$	—	$	106	$	(106	)	$	—	$	—	$	—
Ivy Small Cap Growth Fund
Investments in unaffiliated securities at value*	$	597	$	—	$	597	$	(128	)	$	—	$	—	$	469

* 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.

196 SEMIANNUAL REPORT 2018

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 Core Equity Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	56	$	—	$	56	$	(56	)	$	—	$	—		$	—
Ivy High Income Fund
Unrealized depreciation on forward foreign currency contracts(1)	$	195	$	—	$	195	$	(87	)	$	—	$	(90	)	$	18
Ivy International Core Equity Fund
Swap agreements, at value	$	65	$	—	$	65	$	—		$	—	$	—		$	65
Ivy Mid Cap Growth Fund
Written options at value	$	126	$	—	$	126	$	(106	)	$	—	$	—		$	20
Ivy Small Cap Growth Fund
Swap agreements, at value	$	1,742	$	—	$	1,742	$	—		$	—	$	(1,742	)	$	—
Written options at value		128		—		128		(128	)		—		—			—
Total	$	1,870	$	—	$	1,870	$	(128	)	$	—	$	(1,742	)	$	—

(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, 2018:

		Assets			Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value		Statement of Assets & Liabilities Location	Value
Ivy Core Equity Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts	$	870		$	—
Ivy Global Income Allocation Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		246			—
Ivy High Income Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		79			—
Ivy International Core Equity Fund	Equity			—	Swap agreements, at value		65
Ivy Mid Cap Growth Fund	Equity	Investments in unaffiliated securities at value*		106	Written options at value		126
Ivy Municipal Bond Fund	Interest rate	Unrealized appreciation on futures contracts**		531			—
Ivy Securian Core Bond Fund	Interest rate	Unrealized appreciation on futures contracts**		1,799	Unrealized depreciation on futures contracts**		3,328
Ivy Small Cap Growth Fund	Equity	Investments in unaffiliated securities at value*		597	Swap agreements, at value		1,742
				—	Written options at value		128
Ivy Value Fund	Equity			—	Written options at value		24

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

** The value presented includes cumulative gain (loss) on open futures contracts; 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, 2018.

2018 SEMIANNUAL REPORT 197

Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 2018:

		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 Core Equity Fund	Foreign currency	$	—		$	—		$	—		$	—	$	8,303	$	8,303
Ivy European Opportunities Fund	Equity		—			285			—			—		—		285
	Foreign currency		—			—			—			—		558		558
Ivy Global Equity Income Fund	Foreign currency		—			—			—			—		647		647
Ivy Global Income Allocation Fund	Foreign currency		—			—			—			—		2,209		2,209
Ivy High Income Fund	Foreign currency		—			—			—			—		1,050		1,050
Ivy International Core Equity Fund	Equity		—			—	*		—			—		—		—	*
Ivy Mid Cap Growth Fund	Equity		(3,386	)		—			—			348		—		(3,038	)
Ivy Municipal Bond Fund	Interest rate		—			—			(588	)		—		—		(588	)
Ivy Securian Core Bond Fund	Interest rate		—			—			857			—		—		857
Ivy Small Cap Core Fund	Equity		—			—			(28	)		—		—		(28	)
Ivy Small Cap Growth Fund	Equity		—			1,623			—			—		—		1,623
Ivy Value Fund	Equity		—			—			—			778		—		778

* Not shown due to rounding.

** 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, 2018:

		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 Core Equity Fund	Foreign currency	$	—		$	—		$	—		$	—		$	748		$	748
Ivy European Opportunities Fund	Foreign currency		—			—			—			—			(10	)		(10	)
Ivy Global Equity Income Fund	Foreign currency		—			—			—			—			(12	)		(12	)
Ivy Global Income Allocation Fund	Foreign currency		—			—			—			—			203			203
Ivy High Income Fund	Foreign currency		—			—			—			—			68			68
Ivy International Core Equity Fund	Equity		—			(65	)		—			—			—			(65	)
Ivy Mid Cap Growth Fund	Equity		(125	)		—			—			63			—			(62	)
Ivy Municipal Bond Fund	Interest rate		—			—			1,242			—			—			1,242
Ivy Securian Core Bond Fund	Interest rate		—			—			(2,166	)		—			—			(2,166	)
Ivy Small Cap Growth Fund	Equity		9			4,348			—			(47	)		—			4,310
Ivy Value Fund	Equity		—			—			—			19			—			19

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

During the period ended September 30, 2018, 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 Core Equity Fund	$	2,569	$	—	$	—	$	—	$	—	$	—
Ivy European Opportunities Fund		44		—		—		—		—		—
Ivy Global Equity Income Fund.		51		—		—		—		—		—
Ivy Global Income Allocation Fund		719		—		—		—		—		—
Ivy High Income Fund		311		—		—		—		—		—
Ivy International Core Equity Fund		—		—		—		1,992		—		—

198 SEMIANNUAL REPORT 2018

Fund	Forward foreign currency contracts(1)		Long futures contracts(2)		Short futures contracts(2)		Swap agreements(3)		Purchased options(2)		Written options(2)
Ivy Mid Cap Growth Fund	$	—	$	—	$	—	$	—	$	502	$	38
Ivy Municipal Bond Fund		—		—		20,742		—		—		—
Ivy Securian Core Bond Fund		—		155,508		82,737		—		—		—
Ivy Small Cap Growth Fund		—		—		—		70,804		85		18
Ivy Value Fund		—		—		—		—		—		243

(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. 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, 2018 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	$	2,153,299	$	343		0.02	%

6. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS ($ amounts in thousands unless indicated otherwise)

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

Fund (M - Millions)	$0 to $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 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 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

2018 SEMIANNUAL REPORT 199

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 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
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 Pzena International 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 Securian Core 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 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, 2018.

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

Under an agreement between IICO and Pzena Investment Management, LLC (“Pzena”), Pzena serves as subadviser to Ivy Pzena International Value Fund. Under an agreement between IICO and Securian Asset Management, Inc. (“Securian AM”), Securian AM serves as subadviser to Ivy Securian Core Bond Fund. Each subadviser makes investment decisions in accordance with the Fund’s investment objectives, policies and restrictions under the supervision of IICO and the oversight of the Board. IICO pays all applicable costs of the subadvisers.

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

Accounting Services Fees. The Trust has an Accounting and Administrative Services Agreement with WRSCO, doing business as WI Services Company (“WISC”), an indirect subsidiary of WDR. Under the agreement, WISC acts as the agent in providing bookkeeping and accounting services and assistance to the Trust, including maintenance of Fund records,

200 SEMIANNUAL REPORT 2018

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 (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 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.

2018 SEMIANNUAL REPORT 201

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, 2018, 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 Core Equity Fund	$	863	$	4		$	1		$	1		$	—	$	742
Ivy Emerging Markets Equity Fund		197		—	*		2			14			—		229
Ivy European Opportunities Fund		18		—	*		—	*		—	*		—		15
Ivy Global Bond Fund		40		—	*		1			—	*		N/A		34
Ivy Global Equity Income Fund		97		1			1			—	*		—		84
Ivy Global Growth Fund		129		—	*		—	*		1			—		112
Ivy Global Income Allocation Fund		40		—	*		—	*		1			—		33
Ivy Government Money Market Fund		—		1			1			—	*		—		—
Ivy High Income Fund		748		5			21			17			—		811
Ivy International Core Equity Fund		195		2			1			15			—		249
Ivy Large Cap Growth Fund		700		2			2			2			—		610
Ivy Limited-Term Bond Fund		232		17			3			3			—		215
Ivy Managed International Opportunities Fund		37		—	*		—	*		—	*		—		32
Ivy Micro Cap Growth Fund		60		—	*		—	*		1			N/A		50
Ivy Mid Cap Growth Fund		580		1			3			3			—		559
Ivy Mid Cap Income Opportunities Fund		62		1			N/A			2			—		63
Ivy Municipal Bond Fund		99		1			1			2			N/A		91
Ivy Municipal High Income Fund		166		4			5			3			N/A		153
Ivy Pzena International Value Fund		16		—	*		—	*		—	*		N/A		14
Ivy Securian Core Bond Fund		79		3			—	*		1			—		68
Ivy Small Cap Core Fund		85		11			2			1			—		97
Ivy Small Cap Growth Fund		435		—	*		3			2			—		417
Ivy Tax-Managed Equity Fund		93		1			1			1			N/A		81
Ivy Value Fund		122		—	*		1			1			—		106

* 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 Funds’ investment manager, IDI, the Funds’ distributor, and/or Waddell & Reed Services Company, doing business as WISC, the Funds’ 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, 2018 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 Core Equity Fund	Class A	Contractual	1-11-2013	7-31-2020	1.04%		$	—	N/A
	Class B	Contractual	10-16-2017	7-31-2020	2.13%		$	—	N/A
	Class E	Contractual	8-1-2008	7-31-2019	1.10%(1)		$	7	12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	1-11-2013	7-31-2020	0.84%		$	—	N/A
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—	N/A
	Class Y	Contractual	1-11-2013	7-31-2020	0.84%		$	60	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—	N/A

202 SEMIANNUAL REPORT 2018

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Emerging Markets Equity Fund	Class A	Contractual	3-17-2014	7-31-2019	1.58%		$	—		N/A
	Class B	Contractual	3-17-2014	7-31-2019	2.50%		$	—		N/A
	Class I	Contractual	3-17-2014	7-31-2019	0.99%		$	734		Shareholder Servicing
	Class N	Contractual	3-17-2014	7-31-2019	0.99%		$	—		N/A
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class T	Contractual	7-5-2017	7-31-2019	Not to exceed Class A		$	—		N/A
	Class Y	Contractual	3-17-2014	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy European Opportunities Fund	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy Global Bond Fund	Class A	Contractual	6-2-2008	7-31-2020	0.99%		$	311		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-2-2008	7-31-2020	1.74%		$	4		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	6-2-2008	7-31-2020	1.74%		$	11		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-2-2008	7-31-2020	0.74%		$	185		Shareholder Servicing
	Class N	Contractual	4-1-2017	7-31-2020	0.74%		$	—		N/A
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	6-2-2008	7-31-2020	0.99%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A
Ivy Global Equity Income Fund	Class A	Contractual	6-4-2012	7-31-2020	1.24%		$	5		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-4-2012	7-31-2020	1.95%		$	6		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	2-26-2018	7-31-2020	1.13%		$	21		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-4-2012	7-31-2020	0.92%		$	58		Shareholder Servicing
	Class N	Contractual	8-15-2015	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	6-4-2012	7-31-2020	1.19%		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A
Ivy Global Growth Fund	Class B	Contractual	2-26-2018	7-31-2020	2.58%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	8-1-2011	7-31-2020	1.06%		$	93		Shareholder Servicing
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A
Ivy Global Income Allocation Fund	Class E	Contractual	6-4-2012	7-31-2019	1.31%		$	3		12b-1 Fees and/or Shareholder Servicing
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	6-4-2012	7-31-2019	1.17%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	3-17-2014	7-31-2019	Not to exceed Class A		$	—		N/A

2018 SEMIANNUAL REPORT 203

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Government Money Market Fund	Class E	Contractual	7-31-2018	7-31-2019	0.56%(1)		$	2		12b-1 Fees and/or Shareholder Servicing
Ivy High Income Fund	Class B	Contractual	2-26-2018	7-31-2020	1.71%		$	3		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	2-26-2018	7-31-2020	1.66%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2019	1.08%(6)		$	7		12b-1 Fees and/or Shareholder Servicing
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class T	Contractual	7-5-2017	7-31-2019	Not to exceed Class A		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	18		12b-1 Fees and/or Shareholder Servicing
Ivy International Core Equity Fund	Class E	Contractual	8-1-2008	7-31-2019	1.28%		$	8		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	7-31-2018	7-31-2020	0.79%		$	997		Shareholder Servicing
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	4		Shareholder Servicing
	Class T	Contractual	7-5-2017	7-31-2019	Not to exceed Class A		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy Large Cap Growth Fund	Class A	Contractual	6-1-2006	7-31-2019	1.15%		$	—		N/A
	Class B	Contractual	2-26-2018	7-31-2020	2.05%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2019	1.15%		$	3		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-13-2011	7-31-2020	0.69%(7)		$	425		Shareholder Servicing
	Class N	Contractual	7-31-2018	7-31-2020	0.69%		$	—	*	Shareholder Servicing
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	6-1-2006	7-31-2019	1.06%		$	6		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A
Ivy Limited-Term Bond Fund	Class E	Contractual	8-1-2010	7-31-2019	0.95%(8)		$	2		12b-1 Fees and/or Shareholder Servicing
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Managed International Opportunities Fund	Class A	Contractual	3-17-2014	7-31-2019	0.49%		$	2		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	3-17-2014	7-31-2019	1.40%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	3-17-2014	7-31-2019	1.29%		$	—		N/A
	Class E	Contractual	3-17-2014	7-31-2019	0.39%		$	—		N/A
	Class I	Contractual	3-17-2014	7-31-2019	0.16%		$	14		Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2019	Not to exceed Class I		$	—		N/A
	Class R	Contractual	3-17-2014	7-31-2019	0.72%		$	—		N/A
	Class Y	Contractual	3-17-2014	7-31-2019	0.38%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	3-17-2014	7-31-2019	Not to exceed Class A		$	—		N/A

204 SEMIANNUAL REPORT 2018

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Micro Cap Growth Fund	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy Mid Cap Growth Fund	All Classes	Contractual	8-1-2008	7-31-2020	N/A		$	273	(2)	Investment Management Fee
	Class A	Contractual	8-1-2014	7-31-2019	1.31%		$	—		N/A
	Class B	Contractual	2-26-2018	7-31-2020	2.09%		$	1		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2019	1.28%(9)		$	9		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	7-31-2018	7-31-2020	0.79%		$	645		Shareholder Servicing
	Class N	Contractual	7-31-2018	7-31-2020	0.79%		$	9		Shareholder Servicing
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A
Ivy Mid Cap Income Opportunities Fund	Class A	Contractual	10-1-2014	7-31-2019	1.35%		$	21		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	10-1-2014	7-31-2019	2.07%		$	4		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	10-1-2014	7-31-2019	1.30%		$	—		N/A
	Class I	Contractual	10-1-2014	7-31-2019	1.05%		$	62		Shareholder Servicing
	Class N	Contractual	10-1-2014	7-31-2019	1.05%		$	—		N/A
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class R	Contractual	10-1-2014	7-31-2019	1.80%		$	—		N/A
	Class Y	Contractual	10-1-2014	7-31-2019	1.35%		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy Municipal Bond Fund	Class A	Contractual	10-16-2017	7-31-2020	0.84%		$	162		Shareholder Servicing
	Class I	Contractual	10-16-2017	7-31-2020	0.70%		$	57		Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2019	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Municipal High Income Fund	Class B	Contractual	10-1-2016	7-31-2020	1.62%		$	—	*	12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	10-1-2016	7-31-2020	1.58%		$	33		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	8-1-2011	7-31-2020	0.61%(10)		$	124		12b-1 Fees and/or Shareholder Servicing
	Class N	Contractual	7-5-2017	7-31-2019	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	10-1-2016	7-31-2019	0.94%		$	5		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A

2018 SEMIANNUAL REPORT 205

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement				Expense Reduced
Ivy Pzena International Value Fund	All Classes	Contractual	12-3-2012	7-31-2019	N/A		$	191	(3)	Investment Management Fee
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy Securian Core Bond Fund	All Classes	Contractual	8-1-2011	7-31-2019	N/A		$	154	(4)	Investment Management Fee
	Class E	Contractual	1-31-2011	7-31-2019	1.01%(11)		$	4		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	8-1-2011	7-31-2019	0.54%		$	463		Shareholder Servicing
	Class N	Contractual	8-1-2011	7-31-2019	0.54%		$	11		Shareholder Servicing
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy Small Cap Core Fund	All Classes	Contractual	8-1-2008	7-31-2020	N/A		$	26	(5)	Investment Management Fee
	Class I	Contractual	7-31-2018	7-31-2020	0.89%		$	138		Shareholder Servicing
	Class N	Contractual	7-31-2018	7-31-2020	0.89%		$	5		Shareholder Servicing
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class T	Contractual	7-5-2017	7-31-2019	Not to exceed Class A		$	—		N/A
	Class Y	Contractual	8-1-2008	7-31-2019	Not to exceed Class A		$	—		N/A
Ivy Small Cap Growth Fund	Class B	Contractual	2-26-2018	7-31-2020	2.23%		$	4		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2019	1.35%		$	9		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	7-31-2018	7-31-2020	0.89%		$	212		Shareholder Servicing
	Class N	Contractual	7-31-2018	7-31-2020	0.89%		$	—		N/A
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class T	Contractual	7-5-2017	7-31-2019	Not to exceed Class A		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A
Ivy Tax-Managed Equity Fund	Class A	Contractual	10-16-2017	7-31-2020	1.07%		$	—		N/A
	Class N	Contractual	7-5-2017	7-31-2019	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Value Fund	Class A	Contractual	10-16-2017	7-31-2020	1.22%		$	—		N/A
	Class B	Contractual	10-16-2017	7-31-2020	2.36%		$	—		N/A
	Class I	Contractual	10-16-2017	7-31-2020	0.92%		$	—		N/A
	Class N	Contractual	8-15-2018	7-31-2020	Not to exceed Class I		$	—		N/A
	Class Y	Contractual	8-1-2011	7-31-2020	Not to exceed Class A		$	—		N/A

* Not shown due to rounding.

(1) Reflects the lower expense limit which went into effect July 31, 2018. Prior to July 31, 2018, the expense limit in effect was 1.13%.

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

206 SEMIANNUAL REPORT 2018

(3) The Fund’s management fee is being reduced by 0.21% of average daily net assets.

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

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

(6) Reflects the lower expense limit which went into effect July 31, 2018. Prior to July 31, 2018, the expense limit in effect was 1.11%.

(7) Reflects the lower expense limit which went into effect July 31, 2018. Prior to July 31, 2018, the expense limit in effect was 0.88%.

(8) Reflects the lower expense limit which went into effect July 31, 2018. Prior to July 31, 2018, the expense limit in effect was 0.98%.

(9) Reflects the lower expense limit which went into effect July 31, 2018. Prior to July 31, 2018, the expense limit in effect was 1.30%.

(10) Reflects the lower expense limit which went into effect July 31, 2018. Prior to July 31, 2018, the expense limit in effect was 0.68%.

(11) Reflects the lower expense limit which went into effect July 31, 2018. Prior to July 31, 2018, the expense limit in effect was 1.02%.

Ivy Global Bond Fund, Ivy Global Equity Income Fund, Ivy Global Growth Fund, Ivy Mid Cap Growth Fund, Ivy Municipal Bond Fund, and Ivy Small Cap Growth Fund were reimbursed $5, $1, $1, $1, $2, and $1, respectively, for reorganization fees incurred in each Fund’s previous fiscal year.

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2018 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

7. INTERFUND LENDING PROGRAM

Pursuant to an exemptive order issued by the SEC (“Order”), the Ivy Funds, Ivy Variable Insurance Portfolios and InvestEd Portfolios (collectively, the “Funds” only for purposes of this footnote 6) 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, 2018.

8. AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands)

A summary of the transactions in affiliated companies during the period ended September 30, 2018 follows:

	3-31-18 Share Balance		Gross Additions		Gross Reductions			Realized Gain/(Loss)		Distributions Received		9-30-18 Share Balance		9-30-18 Value			Net Change in Unrealized Appreciation/ (Depreciation)
Ivy High Income Fund
ASG Warrant Corp.(2)		N/A	$	1,206	$	—		$	—	$	—		20	$	—	*	$	(1,205	)
BIS Industries Ltd.(2)		19,683		—		—			—		—		19,683		1,338			(335	)
J.G. Wentworth Co. (The)(2)		4,485		—		—			—		—		4,485		43,731			4,217
Larchmont Resources LLC(2)		18		—		—			—		—		18		5,043			(1,146	)
Maritime Finance Co. Ltd.		1,750		—		—			—		603		1,750		17,145			1,394
True Religion Apparel, Inc.(2)		219		—		—			—		—		219		12,237			(3,284	)
								$	—	$	603			$	79,494		$	(359	)
	3-31-18 Principal Balance									Interest Received		9-30-18 Principal Balance
Larchmont Resources LLC (11.330% Cash or 11.330% PIK), 11.330%, 8-7-20	$	16,126	$	477	$	—		$	—	$	850	$	16,603	$	16,354		$	(112	)
TRLG Intermediate Holdings LLC, 10.000%, 10-27-22		26,651		—		(120	)		12		1,343		26,517		25,634			967
								$	12	$	2,193			$	41,988		$	855

2018 SEMIANNUAL REPORT 207

	3-31-18 Share Balance		Gross Additions		Gross Reductions		Realized Gain/(Loss)(1)			Distributions Received		9-30-18 Share Balance		9-30-18 Value		Net Change in Unrealized Appreciation/ (Depreciation)
Ivy Managed International Opportunities Fund
Ivy Emerging Markets Equity Fund, Class N		1,911	$	1,927	$	7,578	$	673		$	—		1,590	$	30,393	$	(6,804	)
Ivy European Opportunities Fund, Class N		1,032		1,358		22,471		3,361			—		300		9,908		(3,152	)
Ivy Global Equity Income Fund, Class N		N/A		9,678		14		—	*		—		696		9,706		42
Ivy Global Growth Fund, Class N		500		1,104		6,138		1,207			—		378		19,700		716
Ivy Global Income Allocation Fund, Class N		2,155		1,914		23,491		2,071			582		634		9,815		(1,615	)
Ivy IG International Small Cap Fund, Class N		N/A		9,678		14		—	*		—		781		9,618		(47	)
Ivy International Core Equity Fund, Class N		4,880		29,008		34,869		431			—		4,527		89,818		(2,702	)
Ivy Pzena International Value Fund, Class N		N/A		19,356		27		—	*		—		1,025		19,359		31
							$	7,743		$	582			$	198,317	$	(13,531	)
	3-31-18 Share Balance		Gross Additions		Gross Reductions		Realized Gain/(Loss)			Distributions Received		9-30-18 Share Balance		9-30-18 Value		Net Change in Unrealized Depreciation
Ivy Municipal High Income Fund
1155 Island Avenue LLC(2)		6,578	$	—	$	—	$	2,223		$	—		6,578	$	49	$	(718	)
	3-31-18 Principal Balance									Interest Received		9-30-18 Principal Balance
1155 Island Avenue LLC, 10.000%, 12-11-24	$	289	$	—	$	289	$	—		$	11		N/A		N/A	$	—
1155 Island Avenue LLC (10.000% Cash or 12.500% PIK), 10.000%, 12-11-24		2,960		—		2,543		325			115		N/A		N/A		(332	)
							$	325		$	126				N/A	$	(332	)

* 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.

9. 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, 2018, were as follows:

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Core Equity Fund	$	—	$	1,664,766	$	—	$	1,988,279
Ivy Emerging Markets Equity Fund		—		801,855		—		957,234
Ivy European Opportunities Fund		—		66,521		—		160,292
Ivy Global Bond Fund		29,713		55,026		21,947		107,507
Ivy Global Equity Income Fund		—		86,091		—		208,228
Ivy Global Growth Fund		—		304,401		—		328,609
Ivy Global Income Allocation Fund		—		26,301		—		124,218
Ivy Government Money Market Fund		—		—		—		—
Ivy High Income Fund		—		1,299,475		—		1,226,467
Ivy International Core Equity Fund		—		1,805,199		—		1,808,166
Ivy Large Cap Growth Fund		—		786,654		—		958,815
Ivy Limited-Term Bond Fund		323,263		113,839		54,639		433,040

208 SEMIANNUAL REPORT 2018

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Managed International Opportunities Fund	$	—	$	74,023	$	—	$	102,345
Ivy Micro Cap Growth Fund		—		18,676		—		22,618
Ivy Mid Cap Growth Fund		—		659,533		—		635,122
Ivy Mid Cap Income Opportunities Fund		—		61,836		—		28,083
Ivy Municipal Bond Fund		—		17,497		—		73,060
Ivy Municipal High Income Fund		—		38,687		—		148,623
Ivy Pzena International Value Fund		—		278,210		—		165,025
Ivy Securian Core Bond Fund		222,780		195,920		253,276		203,215
Ivy Small Cap Core Fund		—		403,565		—		362,752
Ivy Small Cap Growth Fund		—		714,363		—		686,815
Ivy Tax-Managed Equity Fund		—		42,799		—		52,513
Ivy Value Fund		—		267,952		—		288,831

10. LOANS OF PORTFOLIO SECURITIES ($ amounts in thousands)

The Funds may lend their portfolio securities only to borrowers that are approved by the Fund’s securities lending agent, The Bank of New York Mellon (“BNYM”). The borrower pledges and maintains with the Fund collateral consisting of cash or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% of the market value for all other securities. The collateral is maintained thereafter, at a market value equal to no less than 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund and any excess collateral is returned by the Fund on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

Cash received as collateral for securities on loan may be reinvested in the Dreyfus Institutional Preferred Government Money Market Fund — Institutional Shares or certain other registered money market funds and are disclosed in the Fund’s Schedule of Investments and are reflected in the Statement of Assets and Liabilities as cash collateral on securities loaned at value. Non-cash collateral, in the form of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, is not disclosed in the Fund’s Statement of Assets and Liabilities as it is held by the lending agent on behalf of the Fund and the Fund does not have the ability to re-hypothecate these securities. The securities on loan for each Fund are also disclosed in its Schedule of Investments. The total value of any securities on loan as of September 30, 2018 and the total value of the related cash collateral are disclosed in the Statement of Assets and Liabilities. Income earned by the Funds from securities lending activity is disclosed in the Statements of Operations.

The following is a summary of each Fund’s securities lending positions and related cash and non-cash collateral received as of September 30, 2018:

Fund	Market Value of Securities on Loan		Cash Collateral Received		Non-Cash Collateral Received		Total Collateral Received
Ivy Core Equity Fund	$	82,008	$	84,167	$	—	$	84,167
Ivy Emerging Markets Equity Fund		36,431		11,838		27,047		38,885
Ivy European Opportunities Fund		5,865		6,159		—		6,159
Ivy Global Bond Fund		2,786		2,847		—		2,847
Ivy Global Equity Income Fund		35,758		30,830		7,028		37,858
Ivy Global Growth Fund		13,613		—		14,666		14,666
Ivy Global Income Allocation Fund		8,043		7,193		1,120		8,313
Ivy High Income Fund		36,865		22,763		15,060		37,823
Ivy International Core Equity Fund		6,541		6,869		—		6,869
Ivy Limited-Term Bond Fund		5		5		—		5
Ivy Micro Cap Growth Fund		14,553		14,352		561		14,913
Ivy Mid Cap Growth Fund		112,093		53,029		61,683		114,712
Ivy Mid Cap Income Opportunities Fund		10,210		10,419		—		10,419
Ivy Pzena International Value Fund		4,298		186		4,362		4,548
Ivy Securian Core Bond Fund		3,387		1,730		1,734		3,464
Ivy Small Cap Core Fund		5,101		3,633		1,573		5,206
Ivy Small Cap Growth Fund		38,093		22,957		15,958		38,915

The cash collateral received amounts presented in the table above are transactions accounted for as secured borrowings and have an overnight and continuous maturity. The proceeds from the cash collateral received is invested in registered money market funds.

2018 SEMIANNUAL REPORT 209

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower indemnity provided by BNYM. BNYM’s indemnity allows for full replacement of securities lent wherein BNYM will purchase the unreturned loaned securities on the open market by applying the proceeds of the collateral or to the extent such proceeds are insufficient or the collateral is unavailable, BNYM will purchase the unreturned loan securities at BNYM’s expense. However, the Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

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 Core Equity Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		5,077		$	79,560			10,227		$	153,601
Class B		13			174			27			317
Class C		249			3,355			616			7,689
Class E		49			766			135			1,934
Class I		5,662			98,850			10,418			169,429
Class N		526			8,868			10,037			154,602
Class R		15			229			19			272
Class Y		1,261			21,495			375			5,814
Shares issued in connection with merger:
Class A		N/A			N/A			201,436			2,846,888
Class B		N/A			N/A			504			5,918
Class C		N/A			N/A			1,660			20,229
Class E		N/A			N/A			N/A			N/A
Class I		N/A			N/A			62,343			980,719
Class N		N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			4,012			57,816
Class B		—			—			42			498
Class C		—			—			621			7,607
Class E		—			—			58			819
Class I		—			—			1,936			30,906
Class N		—			—			408			6,447
Class R		—			—			5			75
Class Y		—			—			174			2,668
Shares redeemed:
Class A		(17,957	)		(280,760	)		(22,452	)		(331,564	)
Class B		(178	)		(2,299	)		(355	)		(4,245	)
Class C		(1,210	)		(16,411	)		(7,164	)		(93,053	)
Class E		(70	)		(1,097	)		(153	)		(2,205	)
Class I		(10,653	)		(185,750	)		(26,436	)		(428,154	)
Class N		(1,675	)		(29,942	)		(13,645	)		(217,376	)
Class R		(63	)		(966	)		(93	)		(1,337	)
Class Y		(512	)		(8,689	)		(1,828	)		(28,248	)
Net increase (decrease)		(19,466	)	$	(312,617	)		232,927		$	3,348,066

210 SEMIANNUAL REPORT 2018

	Ivy Emerging Markets Equity Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,023		$	40,077			15,625		$	307,565
Class B		10			163			67			1,101
Class C		639			10,931			3,627			62,899
Class E		—			—			—			—
Class I		21,143			430,787			62,059			1,291,497
Class N		2,578			52,731			15,361			299,394
Class R		154			2,993			706			13,501
Class T		—			—			14			250
Class Y		913			18,184			2,706			54,516
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			1			17
Class B		—			—			—			—
Class C		—			—			—			—
Class E		—			—			—	*		—	*
Class I		—			—			151			3,179
Class N		—			—			35			739
Class R		—			—			—			—
Class T		—			—			—			—
Class Y		—			—			1			18
Shares redeemed:
Class A		(8,613	)		(166,601	)		(6,561	)		(132,574	)
Class B		(70	)		(1,109	)		(123	)		(1,970	)
Class C		(913	)		(15,117	)		(1,022	)		(18,215	)
Class E		—			—			—			—
Class I		(24,630	)		(488,203	)		(13,029	)		(269,140	)
Class N		(2,216	)		(44,514	)		(2,579	)		(54,393	)
Class R		(223	)		(4,353	)		(419	)		(8,196	)
Class T		—			—			—			—
Class Y		(1,262	)		(25,155	)		(856	)		(17,471	)
Net increase (decrease)		(10,467	)	$	(189,186	)		75,764		$	1,532,717

* Not shown due to rounding.

2018 SEMIANNUAL REPORT 211

	Ivy European Opportunities Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		90		$	2,959			432		$	13,927
Class B		—	*		10			2			69
Class C		6			200			34			997
Class E		—			—			—			—
Class I		234			7,741			575			18,308
Class N		81			2,741			3,365			106,096
Class R		—	*		10			1			47
Class Y		13			438			13			408
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			23			746
Class B		—			—			—	*		2
Class C		—			—			1			38
Class E		—			—			—	*		2
Class I		—			—			29			925
Class N		—			—			48			1,565
Class R		—			—			—	*		—	*
Class Y		—			—			—	*		10
Shares redeemed:
Class A		(294	)		(9,649	)		(665	)		(20,914	)
Class B		(5	)		(159	)		(8	)		(236	)
Class C		(27	)		(835	)		(203	)		(6,348	)
Class E		—			—			—			—
Class I		(298	)		(9,884	)		(1,815	)		(56,529	)
Class N		(2,728	)		(91,242	)		(466	)		(15,279	)
Class R		(1	)		(33	)		(1	)		(19	)
Class Y		(10	)		(329	)		(27	)		(883	)
Net increase (decrease)		(2,939	)	$	(98,032	)		1,338		$	42,932

* Not shown due to rounding.

212 SEMIANNUAL REPORT 2018

	Ivy Global Bond Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,132		$	10,880			2,645		$	25,810
Class B		1			13			19			188
Class C		24			234			380			3,712
Class I		3,302			31,669			4,925			48,034
Class N		256			2,449			2,848			27,967
Class R		6			56			27			262
Class Y		22			211			87			849
Shares issued in connection with merger:
Class A		N/A			N/A			24,281			238,780
Class B		N/A			N/A			74			733
Class C		N/A			N/A			484			4,763
Class I		N/A			N/A			19,728			193,948
Class N		N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		284			2,717			339			3,301
Class B		1			13			3			28
Class C		8			75			21			201
Class I		323			3,091			415			4,046
Class N		19			182			29			287
Class R		1			5			1			7
Class Y		2			17			6			60
Shares redeemed:
Class A		(4,725	)		(45,342	)		(4,837	)		(47,191	)
Class B		(62	)		(591	)		(136	)		(1,325	)
Class C		(276	)		(2,643	)		(1,211	)		(11,818	)
Class I		(4,717	)		(45,257	)		(7,061	)		(68,948	)
Class N		(1,138	)		(10,934	)		(1,318	)		(12,898	)
Class R		(6	)		(55	)		(20	)		(194	)
Class Y		(186	)		(1,791	)		(89	)		(866	)
Net increase (decrease)		(5,729	)	$	(55,001	)		41,640		$	409,736

2018 SEMIANNUAL REPORT 213

	Ivy Global Equity Income Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,113		$	15,478			1,083		$	14,855
Class B		—			—			3			39
Class C		68			951			114			1,535
Class E		17			235			5			66
Class I		1,964			27,372			2,969			40,229
Class N		742			10,315			290			4,079
Class R		7			92			4			52
Class Y		13			181			12			155
Shares issued in connection with merger:
Class A		N/A			N/A			31,777			450,943
Class B		N/A			N/A			479			6,793
Class C		N/A			N/A			2,075			29,404
Class E		N/A			N/A			460			6,526
Class I		N/A			N/A			25,283			359,098
Class N		N/A			N/A			26			368
Class R		N/A			N/A			27			388
Class Y		N/A			N/A			366			5,189
Shares issued in reinvestment of distributions to shareholders:
Class A		443			6,156			116			1,538
Class B		3			31			1			9
Class C		18			247			10			131
Class E		6			87			—	*		2
Class I		500			6,944			446			5,909
Class N		5			74			4			56
Class R		—	*		2			—	*		—	*
Class Y		4			53			—	*		3
Shares redeemed:
Class A		(4,889	)		(68,058	)		(2,847	)		(38,692	)
Class B		(138	)		(1,927	)		(44	)		(606	)
Class C		(939	)		(13,005	)		(315	)		(4,352	)
Class E		(67	)		(940	)		(6	)		(80	)
Class I		(6,993	)		(97,443	)		(11,067	)		(149,702	)
Class N		(60	)		(841	)		(54	)		(823	)
Class R		(3	)		(43	)		(5	)		(64	)
Class Y		(71	)		(972	)		(39	)		(537	)
Net increase (decrease)		(8,257	)	$	(115,011	)		51,173		$	732,511

* Not shown due to rounding.

214 SEMIANNUAL REPORT 2018

	Ivy Global Growth Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		422		$	20,675			717		$	33,864
Class B		1			26			2			84
Class C		20			832			43			1,935
Class E		—			—			—			—
Class I		1,257			63,222			1,299			61,567
Class N		38			1,929			519			23,654
Class R		1			55			7			326
Class Y		21			1,015			63			2,929
Shares issued in connection with merger:
Class A		N/A			N/A			7,998			391,094
Class B		N/A			N/A			10			395
Class C		N/A			N/A			18			764
Class E		N/A			N/A			N/A			N/A
Class I		N/A			N/A			3,703			184,733
Class N		N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			170			7,650
Class B		—			—			3			113
Class C		—			—			47			1,826
Class E		—			—			—	*		10
Class I		—			—			391			17,926
Class N		—			—			34			1,588
Class R		—			—			2			100
Class Y		—			—			9			401
Shares redeemed:
Class A		(851	)		(41,608	)		(676	)		(31,419	)
Class B		(14	)		(570	)		(21	)		(838	)
Class C		(59	)		(2,443	)		(506	)		(20,841	)
Class E		—			—			—			—
Class I		(1,179	)		(58,760	)		(2,455	)		(114,697	)
Class N		(150	)		(7,617	)		(215	)		(10,414	)
Class R		(9	)		(463	)		(18	)		(799	)
Class Y		(102	)		(5,010	)		(173	)		(7,882	)
Net increase (decrease)		(604	)	$	(28,717	)		10,971		$	544,069

* Not shown due to rounding.

2018 SEMIANNUAL REPORT 215

	Ivy Global Income Allocation Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		498		$	7,650			2,348		$	36,380
Class B		—	*		2			11			165
Class C		25			383			187			2,842
Class E		10			156			29			440
Class I		959			14,861			3,618			55,904
Class N		106			1,638			2,345			36,083
Class R		—	*		1			—	*		5
Class Y		43			652			52			798
Shares issued in reinvestment of distributions to shareholders:
Class A		288			4,408			466			7,124
Class B		3			41			6			87
Class C		32			477			77			1,155
Class E		5			79			8			117
Class I		555			8,555			1,007			15,515
Class N		40			615			84			1,299
Class R		—	*		—	*		—	*		—	*
Class Y		2			26			6			85
Shares redeemed:
Class A		(2,051	)		(31,514	)		(3,940	)		(60,374	)
Class B		(33	)		(499	)		(111	)		(1,671	)
Class C		(403	)		(6,122	)		(1,507	)		(23,095	)
Class E		(16	)		(245	)		(38	)		(586	)
Class I		(4,389	)		(68,030	)		(10,705	)		(165,447	)
Class N		(1,684	)		(26,180	)		(329	)		(5,088	)
Class R		—	*		(2	)		(2	)		(30	)
Class Y		(70	)		(1,078	)		(165	)		(2,536	)
Net decrease		(6,080	)	$	(94,126	)		(6,553	)	$	(100,828	)

* Not shown due to rounding.

216 SEMIANNUAL REPORT 2018

	Ivy Government Money Market Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		257,303		$	257,303			595,241		$	595,241
Class B		230			230			850			850
Class C		2,677			2,677			23,854			23,854
Class E		1,666			1,666			3,106			3,106
Class N		3,407			3,407			9,180			9,180
Shares issued in reinvestment of distributions to shareholders:
Class A		710			710			714			714
Class B		1			1			—	*		—	*
Class C		25			25			4			4
Class E		38			38			29			29
Class N		59			59			35			35
Shares redeemed:
Class A		(269,245	)		(269,245	)		(644,150	)		(644,150	)
Class B		(1,202	)		(1,202	)		(3,551	)		(3,551	)
Class C		(11,089	)		(11,089	)		(30,791	)		(30,791	)
Class E		(1,309	)		(1,309	)		(3,502	)		(3,502	)
Class N		(3,210	)		(3,210	)		(1,168	)		(1,168	)
Net decrease		(19,939	)	$	(19,939	)		(50,149	)	$	(50,149	)

* Not shown due to rounding.

2018 SEMIANNUAL REPORT 217

	Ivy High Income Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		22,817		$	170,830			46,265		$	351,501
Class B		42			317			102			781
Class C		5,318			39,814			10,834			82,415
Class E		52			386			195			1,480
Class I		53,735			402,062			86,829			659,652
Class N		7,620			57,072			6,135			46,712
Class R		573			4,285			1,095			8,332
Class T		—			—			37			280
Class Y		11,665			87,293			20,354			154,739
Shares issued in connection with merger:
Class A		N/A			N/A			144,878			1,092,522
Class B		N/A			N/A			378			2,851
Class C		N/A			N/A			3,764			28,386
Class E		N/A			N/A			N/A			N/A
Class I		N/A			N/A			68,596			517,285
Class N		N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A
Class T		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		8,480			63,430			9,921			75,325
Class B		191			1,428			456			3,468
Class C		2,592			19,390			5,853			44,484
Class E		41			305			83			632
Class I		9,002			67,335			13,969			106,128
Class N		270			2,016			451			3,425
Class R		255			1,909			537			4,078
Class T		—			—			—			—
Class Y		1,066			7,975			2,407			18,297
Shares redeemed:
Class A		(45,124	)		(337,492	)		(68,953	)		(523,393	)
Class B		(1,533	)		(11,470	)		(3,044	)		(23,113	)
Class C		(13,490	)		(100,947	)		(38,899	)		(295,434	)
Class E		(131	)		(980	)		(260	)		(1,974	)
Class I		(56,663	)		(424,081	)		(110,027	)		(834,321	)
Class N		(1,876	)		(14,039	)		(5,123	)		(38,676	)
Class R		(828	)		(6,198	)		(2,191	)		(16,663	)
Class T		—			—			—			—
Class Y		(15,213	)		(113,729	)		(31,012	)		(235,582	)
Net increase (decrease)		(11,139	)	$	(83,089	)		163,630		$	1,233,617

218 SEMIANNUAL REPORT 2018

	Ivy International Core Equity Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		3,117		$	62,151			12,465		$	243,523
Class B		8			147			89			1,537
Class C		727			12,936			4,049			70,279
Class E		23			456			148			2,929
Class I		28,802			578,280			87,266			1,711,588
Class N		12,459			251,546			68,811			1,344,545
Class R		640			12,702			3,459			66,281
Class T		—			—			13			250
Class Y		2,326			46,591			9,959			193,827
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			315			6,249
Class B		—			—			2			34
Class C		—			—			71			1,255
Class E		—			—			4			75
Class I		—			—			2,082			41,540
Class N		—			—			883			17,666
Class R		—			—			36			721
Class T		—			—			—			—
Class Y		—			—			199			3,979
Shares redeemed:
Class A		(6,467	)		(128,752	)		(10,384	)		(202,682	)
Class B		(80	)		(1,398	)		(273	)		(4,730	)
Class C		(2,071	)		(36,501	)		(4,327	)		(76,096	)
Class E		(32	)		(638	)		(46	)		(906	)
Class I		(32,192	)		(645,047	)		(58,887	)		(1,164,076	)
Class N		(12,489	)		(251,651	)		(17,094	)		(340,879	)
Class R		(519	)		(10,299	)		(794	)		(15,745	)
Class T		—			—			—			—
Class Y		(4,930	)		(98,693	)		(8,951	)		(178,184	)
Net increase (decrease)		(10,678	)	$	(208,170	)		89,095		$	1,722,980

2018 SEMIANNUAL REPORT 219

	Ivy Large Cap Growth Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		3,226		$	78,627			5,945		$	129,208
Class B		26			495			60			985
Class C		328			6,689			721			12,864
Class E		76			1,872			137			2,936
Class I		7,488			192,070			10,901			247,813
Class N		779			19,239			7,806			165,611
Class R		82			1,928			166			3,463
Class Y		144			3,585			209			4,662
Shares issued in connection with merger:
Class A		N/A			N/A			53,370			1,253,711
Class B		N/A			N/A			139			2,522
Class C		N/A			N/A			276			5,415
Class E		N/A			N/A			N/A			N/A
Class I		N/A			N/A			21,732			536,219
Class N		N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			985			21,248
Class B		—			—			27			449
Class C		—			—			237			4,273
Class E		—			—			31			673
Class I		—			—			1,884			42,661
Class N		—			—			244			5,542
Class R		—			—			42			865
Class Y		—			—			59			1,316
Shares redeemed:
Class A		(7,579	)		(184,257	)		(7,200	)		(156,244	)
Class B		(137	)		(2,560	)		(274	)		(4,528	)
Class C		(903	)		(18,294	)		(2,796	)		(51,161	)
Class E		(55	)		(1,376	)		(117	)		(2,523	)
Class I		(9,494	)		(243,467	)		(15,941	)		(360,595	)
Class N		(794	)		(20,635	)		(3,901	)		(90,083	)
Class R		(229	)		(5,354	)		(295	)		(6,096	)
Class Y		(197	)		(4,948	)		(497	)		(10,764	)
Net increase (decrease)		(7,239	)	$	(176,386	)		73,950		$	1,760,442

220 SEMIANNUAL REPORT 2018

	Ivy Limited-Term Bond Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		5,477		$	58,152			16,706		$	180,275
Class B		7			74			56			604
Class C		179			1,900			796			8,588
Class E		55			584			119			1,284
Class I		9,084			96,427			13,835			149,275
Class N		9,029			95,799			7,244			78,493
Class R		31			327			13			139
Class Y		138			1,470			397			4,299
Shares issued in reinvestment of distributions to shareholders:
Class A		346			3,672			737			7,950
Class B		2			25			5			57
Class C		24			249			55			592
Class E		4			40			7			79
Class I		695			7,379			1,410			15,223
Class N		119			1,260			167			1,797
Class R		—	*		1			—	*		3
Class Y		9			91			20			210
Shares redeemed:
Class A		(10,292	)		(109,256	)		(26,714	)		(288,457	)
Class B		(128	)		(1,360	)		(432	)		(4,667	)
Class C		(1,261	)		(13,386	)		(3,726	)		(40,213	)
Class E		(72	)		(760	)		(181	)		(1,960	)
Class I		(10,726	)		(113,871	)		(29,113	)		(314,399	)
Class N		(1,927	)		(20,448	)		(7,497	)		(81,202	)
Class R		(43	)		(455	)		(23	)		(247	)
Class Y		(225	)		(2,376	)		(912	)		(9,860	)
Net increase (decrease)		525		$	5,538			(27,031	)	$	(292,137	)

* Not shown due to rounding.

2018 SEMIANNUAL REPORT 221

	Ivy Managed International Opportunities Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		346		$	4,078			1,586		$	18,799
Class B		—	*		3			3			36
Class C		16			182			78			885
Class E		—			—			—			—
Class I		1,942			23,163			4,686			55,612
Class N		2			27			29			329
Class R		—	*		4			73			840
Class Y		2			26			10			122
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			159			1,877
Class B		—			—			1			16
Class C		—			—			8			88
Class E		—			—			1			13
Class I		—			—			282			3,336
Class N		—			—			—	*		1
Class R		—			—			1			6
Class Y		—			—			1			15
Shares redeemed:
Class A		(774	)		(9,111	)		(1,614	)		(18,791	)
Class B		(20	)		(234	)		(41	)		(461	)
Class C		(38	)		(440	)		(226	)		(2,697	)
Class E		—			—			—			—
Class I		(3,881	)		(45,906	)		(3,202	)		(37,362	)
Class N		—	*		(5	)		(4	)		(50	)
Class R		(8	)		(95	)		(65	)		(755	)
Class Y		(7	)		(83	)		(23	)		(274	)
Net increase (decrease)		(2,420	)	$	(28,391	)		1,743		$	21,585

* Not shown due to rounding.

222 SEMIANNUAL REPORT 2018

	Ivy Micro Cap Growth Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		504		$	15,686			354		$	8,772
Class B		1			40			—	*		2
Class C		40			1,198			29			698
Class I		582			18,822			681			17,254
Class N		100			3,314			79			2,004
Class R		1			41			2			48
Class Y		11			358			4			114
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			—			—
Class B		—			—			—			—
Class C		—			—			—			—
Class I		—			—			—			—
Class N		—			—			—			—
Class R		—			—			—			—
Class Y		—			—			—			—
Shares redeemed:
Class A		(342	)		(10,459	)		(893	)		(22,147	)
Class B		(5	)		(145	)		(22	)		(502	)
Class C		(34	)		(1,002	)		(105	)		(2,484	)
Class I		(563	)		(17,965	)		(1,117	)		(28,518	)
Class N		(13	)		(423	)		(92	)		(2,343	)
Class R		—	*		(9	)		(11	)		(289	)
Class Y		(8	)		(281	)		(14	)		(365	)
Net increase (decrease)		274		$	9,175			(1,105	)	$	(27,756	)

* Not shown due to rounding.

2018 SEMIANNUAL REPORT 223

	Ivy Mid Cap Growth Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		3,445		$	89,755			3,800		$	87,348
Class B		39			802			43			789
Class C		922			20,451			839			16,479
Class E		30			753			63			1,409
Class I		11,388			321,563			16,381			404,767
Class N		7,430			201,676			4,337			102,909
Class R		611			15,571			502			11,247
Class Y		1,284			34,782			2,107			50,158
Shares issued in connection with merger:
Class A		N/A			N/A			48,153			1,166,992
Class B		N/A			N/A			192			3,704
Class C		N/A			N/A			273			5,643
Class E		N/A			N/A			N/A			N/A
Class I		N/A			N/A			21,427			559,007
Class N		N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			1,405			31,683
Class B		—			—			84			1,505
Class C		—			—			831			16,006
Class E		—			—			34			753
Class I		—			—			3,282			79,617
Class N		—			—			367			8,957
Class R		—			—			140			3,074
Class Y		—			—			659			15,531
Shares redeemed:
Class A		(6,611	)		(170,586	)		(7,237	)		(165,815	)
Class B		(166	)		(3,381	)		(299	)		(5,565	)
Class C		(1,257	)		(27,757	)		(3,674	)		(72,544	)
Class E		(34	)		(848	)		(67	)		(1,491	)
Class I		(14,078	)		(385,206	)		(18,759	)		(460,411	)
Class N		(1,707	)		(48,524	)		(2,445	)		(60,737	)
Class R		(316	)		(7,934	)		(1,189	)		(26,333	)
Class Y		(1,943	)		(52,025	)		(7,310	)		(173,496	)
Net increase (decrease)		(963	)	$	(10,908	)		63,939		$	1,601,186

224 SEMIANNUAL REPORT 2018

	Ivy Mid Cap Income Opportunities Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		791		$	11,434			1,406		$	18,594
Class C		130			1,895			198			2,565
Class E		—			—			204			2,562
Class I		4,610			66,640			6,810			89,857
Class N		660			9,655			4,247			53,476
Class R		1			13			204			2,553
Class Y		210			3,080			398			5,046
Shares issued in reinvestment of distributions to shareholders:
Class A		46			673			101			1,345
Class C		2			33			5			70
Class E		—			—			—			—
Class I		98			1,437			193			2,579
Class N		30			433			59			795
Class R		—			—			—			—
Class Y		1			18			2			30
Shares redeemed:
Class A		(923	)		(13,130	)		(3,339	)		(43,294	)
Class C		(126	)		(1,803	)		(609	)		(7,952	)
Class E		—			—			(202	)		(2,546	)
Class I		(2,303	)		(32,960	)		(8,668	)		(113,571	)
Class N		(476	)		(6,876	)		(1,236	)		(16,262	)
Class R		—			—			(202	)		(2,538	)
Class Y		(41	)		(587	)		(628	)		(8,037	)
Net increase (decrease)		2,710		$	39,955			(1,057	)	$	(14,728	)

2018 SEMIANNUAL REPORT 225

	Ivy Municipal Bond Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,104		$	12,400			2,359		$	28,471
Class B		3			36			9			105
Class C		89			1,051			152			1,803
Class I		3,036			35,875			4,043			47,566
Class N		9			106			46			546
Class Y		6			72			1			16
Shares issued in connection with merger:
Class A		N/A			N/A			41,326			494,592
Class B		N/A			N/A			49			583
Class C		N/A			N/A			1,004			12,013
Class I		N/A			N/A			20,536			245,773
Class N		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		665			7,742			709			8,380
Class B		2			19			3			34
Class C		25			291			42			499
Class I		502			5,842			543			6,433
Class N		—	*		5			—	*		3
Class Y		—	*		2			—	*		5
Shares redeemed:
Class A		(4,363	)		(50,888	)		(5,424	)		(64,351	)
Class B		(36	)		(414	)		(76	)		(903	)
Class C		(383	)		(4,464	)		(1,209	)		(14,357	)
Class I		(3,966	)		(46,280	)		(5,479	)		(65,045	)
Class N		(6	)		(74	)		(2	)		(22	)
Class Y		(4	)		(44	)		(8	)		(91	)
Net increase (decrease)		(3,317	)	$	(38,723	)		58,624		$	702,053

* Not shown due to rounding.

226 SEMIANNUAL REPORT 2018

	Ivy Municipal High Income Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		4,701		$	23,721			7,677		$	39,014
Class B		9			48			25			130
Class C		479			2,418			1,544			7,895
Class I		11,202			56,526			27,145			138,392
Class N		66			331			90			460
Class Y		178			901			1,259			6,436
Shares issued in connection with merger:
Class A		N/A			N/A			111,718			563,954
Class B		N/A			N/A			66			334
Class C		N/A			N/A			2,912			14,700
Class I		N/A			N/A			23,472			118,488
Class N		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		2,506			12,629			1,664			8,464
Class B		20			99			41			209
Class C		395			1,991			763			3,886
Class I		1,957			9,862			3,278			16,696
Class N		1			6			1			3
Class Y		41			206			100			511
Shares redeemed:
Class A		(15,228	)		(76,810	)		(22,223	)		(113,175	)
Class B		(364	)		(1,833	)		(547	)		(2,789	)
Class C		(4,774	)		(24,081	)		(12,673	)		(64,561	)
Class I		(26,384	)		(133,104	)		(72,271	)		(368,236	)
Class N		(16	)		(82	)		(3	)		(15	)
Class Y		(660	)		(3,333	)		(2,183	)		(11,125	)
Net increase (decrease)		(25,871	)	$	(130,505	)		71,855		$	359,671

2018 SEMIANNUAL REPORT 227

	Ivy Pzena International Value Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		144		$	2,677			804		$	15,383
Class B		—	*		3			1			20
Class C		3			59			23			384
Class E		N/A			N/A			3			52
Class I		2,138			40,142			503			9,201
Class N		5,501			103,611			19			332
Class R		—	*		3			2			40
Class Y		8			153			14			241
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			42			761
Class B		—			—			—			—
Class C		—			—			2			25
Class E		N/A			N/A			—			—
Class I		—			—			54			1,019
Class N		—			—			—	*		2
Class R		—			—			—	*		—	*
Class Y		—			—			1			22
Shares redeemed:
Class A		(573	)		(10,527	)		(1,231	)		(22,155	)
Class B		(9	)		(155	)		(25	)		(402	)
Class C		(34	)		(589	)		(695	)		(12,567	)
Class E		N/A			N/A			(58	)		(1,022	)
Class I		(613	)		(11,514	)		(1,849	)		(33,907	)
Class N		(152	)		(2,841	)		(75	)		(1,376	)
Class R		—	*		(4	)		(2	)		(35	)
Class Y		(10	)		(181	)		(27	)		(503	)
Net increase (decrease)		6,403		$	120,837			(2,494	)	$	(44,485	)

* Not shown due to rounding.

228 SEMIANNUAL REPORT 2018

	Ivy Securian Core Bond Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,248		$	23,539			5,902		$	63,272
Class B		2			16			51			542
Class C		66			689			331			3,559
Class E		17			178			80			853
Class I		13,779			144,332			23,041			246,977
Class N		1,705			17,845			24,978			268,401
Class R		8			89			571			6,134
Class Y		55			571			102			1,091
Shares issued in reinvestment of distributions to shareholders:
Class A		251			2,628			488			5,224
Class B		3			30			6			66
Class C		14			142			34			358
Class E		5			54			10			111
Class I		834			8,733			1,390			14,899
Class N		304			3,158			483			5,179
Class R		2			19			18			195
Class Y		6			68			11			121
Shares redeemed:
Class A		(4,614	)		(48,308	)		(6,790	)		(72,756	)
Class B		(68	)		(716	)		(238	)		(2,554	)
Class C		(354	)		(3,711	)		(1,337	)		(14,330	)
Class E		(47	)		(495	)		(139	)		(1,489	)
Class I		(10,572	)		(110,617	)		(17,840	)		(191,326	)
Class N		(6,411	)		(67,102	)		(7,152	)		(76,909	)
Class R		(65	)		(680	)		(1,131	)		(12,108	)
Class Y		(57	)		(600	)		(113	)		(1,213	)
Net increase (decrease)		(2,889	)	$	(30,138	)		22,756		$	244,297

2018 SEMIANNUAL REPORT 229

	Ivy Small Cap Core Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,100		$	22,828			1,888		$	34,837
Class B		16			268			28			421
Class C		344			6,171			606			9,616
Class E		—			—			—			—
Class I		4,571			102,343			10,695			212,749
Class N		1,036			23,736			2,791			54,053
Class R		260			5,347			428			7,747
Class T		—			—			14			250
Class Y		277			6,063			441			8,451
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			224			4,174
Class B		—			—			5			71
Class C		—			—			49			795
Class E		—			—			—	*		4
Class I		—			—			310			6,251
Class N		—			—			42			859
Class R		—			—			11			207
Class T		—			—			—			—
Class Y		—			—			16			323
Shares redeemed:
Class A		(1,748	)		(35,943	)		(3,266	)		(59,889	)
Class B		(40	)		(663	)		(176	)		(2,599	)
Class C		(264	)		(4,732	)		(701	)		(11,294	)
Class E		—			—			—			—
Class I		(2,957	)		(65,220	)		(7,484	)		(149,274	)
Class N		(279	)		(6,223	)		(1,173	)		(23,782	)
Class R		(50	)		(1,030	)		(210	)		(3,846	)
Class T		—			—			—			—
Class Y		(155	)		(3,270	)		(650	)		(12,307	)
Net increase		2,111		$	49,675			3,888		$	77,817

* Not shown due to rounding.

230 SEMIANNUAL REPORT 2018

	Ivy Small Cap Growth Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		4,151		$	84,137			9,393		$	172,775
Class B		15			222			29			389
Class C		762			12,397			842			12,543
Class E		40			798			69			1,240
Class I		7,751			204,757			6,930			162,777
Class N		1,577			43,239			3,051			71,464
Class R		581			11,539			803			14,424
Class T		—			—			14			250
Class Y		1,301			32,292			1,744			39,134
Shares issued in connection with merger:
Class A		N/A			N/A			35,270			658,668
Class B		N/A			N/A			217			2,958
Class C		N/A			N/A			266			3,989
Class E		N/A			N/A			N/A			N/A
Class I		N/A			N/A			11,731			286,336
Class N		N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A
Class T		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			1,478			25,562
Class B		—			—			77			968
Class C		—			—			1,546			21,525
Class E		—			—			55			936
Class I		—			—			1,373			30,995
Class N		—			—			384			8,720
Class R		—			—			300			5,091
Class T		—			—			—			—
Class Y		—			—			491			10,470
Shares redeemed:
Class A		(5,896	)		(118,192	)		(4,803	)		(88,235	)
Class B		(148	)		(2,175	)		(215	)		(2,919	)
Class C		(1,387	)		(23,151	)		(8,330	)		(124,130	)
Class E		(31	)		(638	)		(76	)		(1,380	)
Class I		(3,679	)		(97,313	)		(4,825	)		(114,061	)
Class N		(523	)		(13,917	)		(2,062	)		(49,030	)
Class R		(339	)		(6,703	)		(814	)		(14,602	)
Class T		—			—			—			—
Class Y		(914	)		(22,814	)		(2,582	)		(57,359	)
Net increase		3,261		$	104,478			52,356		$	1,079,498

2018 SEMIANNUAL REPORT 231

	Ivy Tax-Managed Equity Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		379		$	10,363			840		$	20,660
Class B		—			—			48			1,024
Class C		36			948			72			1,626
Class I		1,101			30,710			1,549			37,886
Class N		4			115			15			349
Class Y		1			27			—	*		4
Shares issued in connection with merger:
Class A		N/A			N/A			10,050			234,849
Class B		N/A			N/A			13			299
Class C		N/A			N/A			253			5,615
Class I		N/A			N/A			7,472			176,618
Class N		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			12			272
Class B		—			—			—	*		3
Class C		—			—			2			41
Class I		—			—			21			490
Class N		—			—			—	*		—	*
Class Y		—			—			—	*		1
Shares redeemed:
Class A		(735	)		(20,325	)		(1,014	)		(25,038	)
Class B		(7	)		(188	)		(57	)		(1,212	)
Class C		(62	)		(1,607	)		(180	)		(4,314	)
Class I		(1,296	)		(36,142	)		(1,851	)		(45,555	)
Class N		—	*		(10	)		—	*		(9	)
Class Y		—	*		—	*		—	*		(3	)
Net increase (decrease)		(579	)	$	(16,109	)		17,245		$	403,606

* Not shown due to rounding.

232 SEMIANNUAL REPORT 2018

	Ivy Value Fund
	Six months ended 9-30-18 (Unaudited)						Year ended 3-31-18
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		705		$	17,278			1,191		$	28,339
Class B		1			32			9			196
Class C		42			981			79			1,794
Class E		—			—			—			—
Class I		3,429			83,810			4,243			100,793
Class N		1,174			28,015			7,838			178,249
Class R		—	*		—	*		1			16
Class Y		2			56			13			308
Shares issued in connection with merger:
Class A		N/A			N/A			13,887			322,308
Class B		N/A			N/A			53			1,132
Class C		N/A			N/A			205			4,587
Class E		N/A			N/A			N/A			N/A
Class I		N/A			N/A			18,840			438,823
Class N		N/A			N/A			N/A			N/A
Class R		N/A			N/A			N/A			N/A
Class Y		N/A			N/A			N/A			N/A
Shares issued in reinvestment of distributions to shareholders:
Class A		45			1,128			430			10,062
Class B		—			—			3			72
Class C		—			—			26			595
Class E		—	*		1			—	*		6
Class I		126			3,164			697			16,371
Class N		41			1,037			240			5,645
Class R		—	*		—	*		—	*		1
Class Y		—	*		1			1			11
Shares redeemed:
Class A		(2,455	)		(59,883	)		(2,891	)		(68,395	)
Class B		(31	)		(695	)		(86	)		(1,856	)
Class C		(99	)		(2,346	)		(440	)		(10,179	)
Class E		—			—			—			—
Class I		(3,764	)		(92,819	)		(6,315	)		(150,109	)
Class N		(1,316	)		(32,973	)		(2,122	)		(49,849	)
Class R		—	*		—	*		(1	)		(28	)
Class Y		(7	)		(177	)		(9	)		(220	)
Net increase (decrease)		(2,107	)	$	(53,390	)		35,892		$	828,672

* Not shown due to rounding.

12. COMMITMENTS

Bridge loan commitments may obligate a Fund to furnish temporary financing to a borrower until permanent financing can be arranged. In connection with these commitments, the Fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income is included in interest income on the Statement of Operations. At September 30, 2018, there were no outstanding bride loan commitments.

2018 SEMIANNUAL REPORT 233

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

For Federal income tax purposes, cost of investments owned at September 30, 2018 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Core Equity Fund	$	3,544,106	$	1,287,627	$	26,972	$	1,260,655
Ivy Emerging Markets Equity Fund		1,958,179		327,369		122,186		205,183
Ivy European Opportunities Fund		130,177		29,865		1,176		28,689
Ivy Global Bond Fund		525,481		3,393		29,993		(26,600	)
Ivy Global Equity Income Fund		878,459		155,879		36,389		119,490
Ivy Global Growth Fund		771,760		294,988		13,041		281,947
Ivy Global Income Allocation Fund		522,204		50,781		26,002		24,779
Ivy Government Money Market Fund		153,327		—		—		—
Ivy High Income Fund		5,845,715		100,292		301,955		(201,663	)
Ivy International Core Equity Fund		6,547,165		670,723		393,181		277,542
Ivy Large Cap Growth Fund		2,265,094		1,743,782		14,660		1,729,122
Ivy Limited-Term Bond Fund		1,309,348		1,074		15,305		(14,231	)
Ivy Managed International Opportunities Fund		174,698		23,934		46		23,888
Ivy Micro Cap Growth Fund		135,432		91,977		4,061		87,916
Ivy Mid Cap Growth Fund		3,156,033		1,777,114		117,999		1,659,115
Ivy Mid Cap Income Opportunities Fund		333,400		88,757		4,571		84,186
Ivy Municipal Bond Fund		781,906		47,196		1,651		45,545
Ivy Municipal High Income Fund		1,262,860		66,015		72,800		(6,785	)
Ivy Pzena International Value Fund		303,827		10,237		10,796		(559	)
Ivy Securian Core Bond Fund		917,490		6,106		16,569		(10,463	)
Ivy Small Cap Core Fund		672,764		121,630		6,935		114,695
Ivy Small Cap Growth Fund		1,849,721		803,735		31,112		772,623
Ivy Tax-Managed Equity Fund		356,891		302,130		68		302,062
Ivy Value Fund		942,445		297,234		14,587		282,647

For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2018 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 Core Equity Fund	$	67,233	$	79,925	$	—	$	—	$	—
Ivy Emerging Markets Equity Fund		1,554		—		—		—		—
Ivy European Opportunities Fund		583		—		—		—		—
Ivy Global Bond Fund		2,676		753		—		—		—
Ivy Global Equity Income Fund		4,623		96,399		—		—		—
Ivy Global Growth Fund		427		11,564		—		728		—
Ivy Global Income Allocation Fund		2,328		—		—		—		—
Ivy Government Money Market Fund		42		—		—		—		—
Ivy High Income Fund		4,445		—		—		—		—
Ivy International Core Equity Fund		47,955		114,071		—		—		—
Ivy Large Cap Growth Fund		4,822		113,104		—		—		—
Ivy Limited-Term Bond Fund		387		—		—		—		—
Ivy Managed International Opportunities Fund		—		1,733		—		—		72
Ivy Micro Cap Growth Fund		—		4,425		—		—		396
Ivy Mid Cap Growth Fund		—		222,067		—		—		4,626
Ivy Mid Cap Income Opportunities Fund		3,093		3,398		—		—		—
Ivy Municipal Bond Fund		340		—		—		—		—
Ivy Municipal High Income Fund		289		—		—		—		—
Ivy Pzena International Value Fund		350		—		—		42		—

234 SEMIANNUAL REPORT 2018

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Tax Return of Capital		Post- October Capital Losses Deferred		Late-Year Ordinary Losses Deferred
Ivy Securian Core Bond Fund	$	402	$	—	$	—	$	—	$	—
Ivy Small Cap Core Fund		7,273		40,667		—		—		—
Ivy Small Cap Growth Fund		13,018		76,982		—		—		—
Ivy Tax-Managed Equity Fund		143		18,664		—		—		—
Ivy Value Fund		2,429		746		—		1,308		—

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, 2018 and 2017 were as follows:

	March 31, 2018				March 31, 2017
Fund	Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains		Distributed Ordinary Income(1)		Distributed Long-Term Capital Gains
Ivy Core Equity Fund	$	10,796	$	101,785	$	5,259	$	30,772
Ivy Emerging Markets Equity Fund		4,504		—		—		—
Ivy European Opportunities Fund		3,345		—		2,973		—
Ivy Global Bond Fund		8,396		—		3,572		—
Ivy Global Equity Income Fund		8,225		—		12,392		—
Ivy Global Growth Fund		6,405		24,711		—		—
Ivy Global Income Allocation Fund		26,293		—		28,894		—
Ivy Government Money Market Fund		803		—		62		—
Ivy High Income Fund		304,606		—		346,065		—
Ivy International Core Equity Fund		87,256		—		77,682		—
Ivy Large Cap Growth Fund		2,210		79,235		—		76,259
Ivy Limited-Term Bond Fund		26,915		—		30,357		—
Ivy Managed International Opportunities Fund		2,880		2,606		2,152		—
Ivy Micro Cap Growth Fund		—		—		—		2,235
Ivy Mid Cap Growth Fund		—		171,744		—		92,513
Ivy Mid Cap Income Opportunities Fund		5,099		—		2,452		—
Ivy Municipal Bond Fund		16,895		—		5,149		—
Ivy Municipal High Income Fund		38,731		719		54,485		—
Ivy Pzena International Value Fund		1,875		—		1,105		—
Ivy Securian Core Bond Fund		27,301		—		20,119		—
Ivy Small Cap Core Fund		8,479		5,332		10,791		7,727
Ivy Small Cap Growth Fund		1,864		107,552		—		51,252
Ivy Tax-Managed Equity Fund		—		851		—		—
Ivy Value Fund		12,710		20,651		6,858		—

⁽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, 2018 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

2018 SEMIANNUAL REPORT 235

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, 2018:

	Pre-Enactment		Post-Enactment
Fund	2019		Short-Term Capital Loss Carryover		Long-Term Capital Loss Carryover
Ivy Core Equity Fund	$	—	$	—	$	—
Ivy Emerging Markets Equity Fund		—		97,490		—
Ivy European Opportunities Fund		—		10,476		—
Ivy Global Bond Fund		—		42,027		9,382
Ivy Global Equity Income Fund		—		11,780		—
Ivy Global Growth Fund		—		—		—
Ivy Global Income Allocation Fund		—		26,534		25,790
Ivy Government Money Market Fund		—		—		—
Ivy High Income Fund		—		174,823		627,244
Ivy International Core Equity Fund		—		—		—
Ivy Large Cap Growth Fund		—		—		—
Ivy Limited-Term Bond Fund		—		11,680		8,344
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		146		9,906		1,302
Ivy Municipal High Income Fund		—		22,400		33,102
Ivy Pzena International Value Fund		—		—		—
Ivy Securian Core Bond Fund		1,704		2,303		—
Ivy Small Cap Core Fund		—		—		—
Ivy Small Cap Growth Fund		—		—		—
Ivy Tax-Managed Equity Fund		—		—		—
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.

Ivy Dividend Opportunities Fund was merged into Ivy Global Equity Income Fund as of February 26, 2018. Due to the merger, Ivy Global Equity Income Fund’s capital loss carryovers available to offset future gains are annually limited to $5,716 plus any unused limitations from prior years and any built in gains realized.

Waddell & Reed Advisors Global Bond Fund was merged into Ivy Global Bond Fund as of October 16, 2017. Due to the merger, Ivy Global Bond Fund’s capital loss carryovers available to offset future gains are annually limited to $3,530 plus any unused limitations from prior years. Ivy Global Bond Fund’s net gains realized in the current year ended March 31, 2018 was limited to $1,997 that could be offset with Waddell & Reed Advisors Global Bond Fund’s capital loss carryover that was brought over.

Waddell & Reed Advisors High Income Fund was merged into Ivy High Income Fund as of February 26, 2018. At the time of the merger, Waddell & Reed Advisors High Income Fund had capital loss carryovers available to offset future gains of the Ivy High Income Fund. These carryovers are annually limited to $32,329 plus any unused limitations from prior years.

Waddell & Reed Advisors Municipal High Income Fund was merged into Ivy Municipal High Income Fund as of February 26, 2018. At the time of the merger, Waddell & Reed Advisors Municipal High Income Fund had capital loss carryovers available to offset future gains of the Ivy Municipal High Income Fund. These carryovers are annually limited to $13,740 plus any unused limitations from prior years.

236 SEMIANNUAL REPORT 2018

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENTS IVY FUNDS (UNAUDITED)

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 14^th and 15^th, 2018, 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:

• Apollo Credit Management, LLC (with respect to Ivy Apollo Multi-Asset Income Fund and Ivy Apollo Strategic Income Fund);

• I.G. International Management Limited (with respect to Ivy IG International Small Cap Fund);

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

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

• Pictet Asset Management Limited and Pictet Asset Management SA (with respect to Ivy Pictet Targeted Return Bond Fund);

• PineBridge Investments, LLC (with respect to Ivy PineBridge High Yield Fund);

• ProShare Advisors, LLC (with respect to Ivy ProShares S&P 500 Dividend Aristocrats Index Fund, Ivy ProShares Russell 2000 Dividend Growers Index Fund, Ivy ProShares Interest Rate Hedged High Yield Index Fund, Ivy ProShares S&P 500 Bond Index Fund and Ivy ProShares MSCI ACWI Index Fund); and

• Securian Asset Management, Inc. (with respect to Ivy Securian Core Bond Fund and Ivy Securian Real Estate Securities Fund).

Each subadviser is referred to herein as a “Subadviser,” and the Management Agreement and the Investment Subadvisory Agreements are referred to collectively herein as the “Agreements.”

The Board’s Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel explained the factors that the Board should consider as part of its review of the 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 IICO’s and the Subadvisers’ 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 15(c) due diligence request lists 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 2018. They further reviewed these materials extensively 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 14-15, 2018 Board meeting, during which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board’s determination to approve the Agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to the Funds by IICO and each Subadviser, taking into account the large amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence requests submitted on its behalf by independent legal counsel 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 performance of the Funds, IICO’s investment risk management function, and the on-going changes IICO has been undertaking for itself, the Trust and the overall fund complex. As such, the Board examined all of IICO’s activities in light of 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 shareholders, reduce the Funds’ expenses and enhance the performance of the Funds, particularly in the context of substantial industry change and regulatory developments.

2018 SEMIANNUAL REPORT 237

The Board likewise considered the knowledge it had received from its regular meetings, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the other services provided to the Funds by IICO and each Subadviser (such as managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to each Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable laws and regulations). The Board also took into account the compliance environment at IICO and each Subadviser, noting the resources that IICO has dedicated towards compliance. The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with the 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 took note of the caps that management previously had agreed to on shareholder servicing costs. The Board also considered the benefits that accrue to each service provider organization from its respective relationship with the Funds, including the fact that a variety of services are provided by affiliates of IICO, including distribution, administrative and Fund accounting services, and, as discussed above, shareholder servicing. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receives any additional direct or indirect benefits that would preclude the Board from approving the continuation of the Management Agreement with IICO or any Investment Subadvisory Agreement with a Subadviser.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds’ shareholders. The Board considered the fact that as a Fund’s assets have grown, the expenses of that Fund generally have fallen, although the Board took into account that the overall assets of the Funds have fallen during the prior year. Additionally, in that regard, 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 in particular 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 and fee reduction 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;

238 SEMIANNUAL REPORT 2018

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.

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, 2018, approximately 15% of the Funds were in the top quartile of performance and 33% of the 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 49% of the Funds were in the top two quartiles in the one-year period, and that 31% 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 4% below the average total expenses of their respective Broadridge Expense Group peers and flat compared to the average total expenses for their Broadridge Expense Universes. The management fees for the Funds were 4% over the average management fees of their respective Broadridge Expense Group peers and 6% 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 relative to other complexes is reasonable. Finally, the report noted that IICO has continued to invest in AUM growth, which is designed to help drive down fund expenses and attract top investment management talent, as well as in fund mergers, which could help drive down expenses, both of which can benefit the Funds’ investors.

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

Conclusions

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

2018 SEMIANNUAL REPORT 239

PROXY VOTING INFORMATION IVY FUNDS (UNAUDITED)

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.

240 SEMIANNUAL REPORT 2018

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2018 SEMIANNUAL REPORT 241

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242 SEMIANNUAL REPORT 2018

THE IVY FUNDS FAMILY

DOMESTIC EQUITY FUNDS

Ivy Accumulative Fund

Ivy Core Equity 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 Emerging Markets Equity 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

Ivy Pictet Emerging Markets Local Currency Debt Fund

Ivy Pzena International Value 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 Science and Technology Fund

Ivy Securian Real Estate Securities Fund

Ivy Wilshire Global Allocation Fund

FIXED INCOME FUNDS

Ivy Apollo Strategic Income Fund

Ivy California Municipal High Income Fund

Ivy Corporate Bond Fund

Ivy Crossover Credit Fund

Ivy Global Bond Fund

Ivy Government Securities 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

Ivy Securian Core Bond Fund

MONEY MARKET FUNDS

Ivy Cash Management Fund

Ivy Government Money Market 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.

2018 SEMIANNUAL REPORT 243

SEMIANN-IVYFUNDS (9-18)

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, 2018

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, 2018

By	/s/ Joseph W. Kauten
	Joseph W. Kauten, Vice President and Principal Financial Officer

Date: December 7, 2018

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, 2018	/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, 2018	/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, 2018

By	/s/ Joseph W. Kauten
	Joseph W. Kauten, Principal Financial Officer

Date: December 7, 2018