Market Overview

Ivy reduces expenses on 10 key funds


Firm announces latest step in evolution of fund product line

Ivy Investments has taken another step in the ongoing refinement of its
mutual fund product line, announcing today that it has filed with the
Securities and Exchange Commission (SEC) to reduce expenses, via
specific contractual fee waivers, on the Class I, and in some cases also
Class N shares, of 10 of its funds, effective July 31, 2018, through
July 31, 2020.

"Our focus is on reducing expenses on the funds and share classes that
are providing the greatest impact and value to investors," said Amy
Scupham, president of Ivy Distributors, Inc. "We're committed to
addressing the changing dynamics of the industry in order to remain
competitive and relevant."

Across funds with the fee reductions, listed below, the peer ranking as
it relates to expense ratio moved on average from the 65th
percentile to the 37th percentile, as compared to each
respective Morningstar peer group.

A key component of the firm's overall strategy is the ongoing review of
its product line and pricing, as announced last year. Central to that
review is the pricing structure, which takes into account all products,
all distribution channels and market demand.

The expense reductions follow steps in late 2017 and early 2018 to merge
the former Waddell & Reed Advisors Funds into similar Ivy Funds,
creating economies of scale. The firm in June filed with the SEC to
merge five Ivy Funds and one Ivy Variable Insurance Portfolio (Ivy VIP)
into other Ivy Funds, and one Ivy VIP, respectively, with generally
similar investment objectives, creating more economies of scale for the
benefit of fund shareholders. Those six mergers are subject to
shareholder approval and, if approved, are anticipated to be effective
in November 2018.

"As active managers, it is incumbent upon us to provide alpha for our
clients within competitive products," said Scupham. "Our investment
process brings differentiated ideas through in-depth research, which
enhances our ability to create the potential for additional value,
supported now by reduced expenses."

She added that Ivy chose to focus on Class I and Class N shares, given
industry flow data showing that investors are rapidly moving to
institutional share classes, matching a shift to fee-based advisory
business models and away from transactional business.

"This expense reduction is a progression of our overall strategy and is
a reflection of our comprehensive analysis of industry pricing," said

The selected funds and share classes include:


New Total Net Operating
Expense Ratio (%)


Previous Total Net Operating
Expense Ratio (%)

Ivy Apollo Multi-Asset Income Fund I

Ivy Apollo Multi-Asset Income Fund N





Ivy Apollo Strategic Income Fund I

Ivy Apollo Strategic Income Fund N





Ivy Energy Fund I       0.99       1.08
Ivy International Core Equity Fund I       0.79       0.97
Ivy IG International Small Cap Fund I

Ivy IG International Small Cap Fund N





Ivy Large Cap Growth Fund I

Ivy Large Cap Growth Fund N





Ivy Mid Cap Growth Fund I

Ivy Mid Cap Growth Fund N





Ivy Municipal High Income Fund I       0.61       0.68
Ivy Small Cap Core Fund I

Ivy Small Cap Core Fund N





Ivy Small Cap Growth Fund I

Ivy Small Cap Growth Fund N






Past performance is not a guarantee of future results. Investment
return and principal value will fluctuate, and it is possible to lose
money by investing. Please refer to each Fund's prospectus for more risk
information. Not all funds or fund classes may be offered at all

IVY INVESTMENTS® refers to the investment management and investment
advisory services offered by Ivy Investment Management Company, the
financial services offered by Ivy Distributors, Inc., a FINRA member
broker dealer and the distributor of IVY FUNDS® mutual funds and IVY
VARIABLE INSURANCE PORTFOLIOS℠, and the financial services offered by
their affiliates.

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
or from a financial advisor. Please read it carefully before investing.

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