Monday, April 07, 2008
Ivy Funds Taps Fixed-Income Market for New Fund
News summary by MFWire's editors
is taking advantage of the fixed-income arena recently buoyed by the market downturn. The firm has launched the The Ivy Global Strategic Income Fund, which will invest in the global bond market. Dan Vrabac
, senior vice president of Ivy, and Mark Beischel
, also a senior vice president, will co-manage the new fund.
Company Press Release
OVERLAND PARK, Kan., April 7, 2008 /PRNewswire/-- Ivy Funds has
launched a new global fixed-income mutual fund designed to expand bond
investors' horizons beyond the United States. The Ivy Global Strategic
Income Fund has the flexibility to invest in any bond sector, country,
rating category, maturity, or currency, as well as potentially invest up to
20 percent of its assets in equities globally.
"The U.S. represents less than half of the global bond market today,
and its share is declining," said Dan Vrabac, senior vice president of Ivy
Investment Management Company and co-portfolio manager of the new fund.
"The Ivy Global Strategic Income Fund has a broad mandate that allows the
managers to attempt to improve returns through a globally diversified fixed
income portfolio, with the added ability to enhance income and return
through the use of currencies and equities. Additionally, the greater
diversification and derivative capabilities of the fund provide better
tools for risk management."
Vrabac will partner in management of the new fund with Mark Beischel,
CFA, also a senior vice president, who has 15 years of experience and who
manages a similar fund, the Waddell & Reed Advisors Global Bond Fund. The
Advisors Global Bond Fund, which has a mandate that mirrors the new fund,
has a history of competitive performance and is in the top decile of its
peer group over the latest 3-year period and in the top 12 percent of its
peer group over the last year, according to Lipper.
Vrabac, with 29 years of industry experience, also is a co-manager of
the Ivy Asset Strategy Fund, which experienced some of the highest asset
flows in the industry during 2007, according to Financial Research Corp.
(FRC), and is in the top decile of its peer group over the 1-, 3-, 5- and
10-year periods ended 12/31/07, according to Lipper. Ivy Asset Strategy
Fund exercises a flexible strategy in the selection of securities, and is
not required to allocate its investments in any fixed proportions. "The Ivy
Global Strategic Income Fund approaches the global fixed income market in a
manner similar to that with which the Asset Strategy Fund approaches the
total global market. Improving bond investors' return while controlling
risk will be our key areas of focus," said Vrabac.
"There currently are four key themes around the world that may provide
opportunities for the Global Strategic Income Fund," said Beischel. "The
U.S. dollar is fundamentally weak; inflation, in the U.S. and globally,
likely will continue to creep higher for the foreseeable future; global
infrastructure build-out bodes well for the debt market; and the value of
some foreign currencies is on the rise, providing more potential for
Minimum initial investment in the Ivy Global Strategic Income Fund is
$500. Investing through an automatic investment service or payroll
deduction allows smaller initial investments. For more information, contact
your financial advisor or visit http://www.ivyfunds.com.
The Ivy Funds were among the top 10 "Best Mutual Fund Families of
2007," as ranked and published by Barron's, out of 67 fund families ranked
according to asset-weighted returns in five categories.
The Ivy Funds also ranked among the fastest growing mutual fund
families in 2007, according to a recent study released by Financial
Research Corporation (FRC). The Ivy Funds ranked second in terms of asset
growth over the year among all firms with assets of $5 billion or greater.
Asset growth has been strong since the Ivy Funds were relaunched in 2003,
with total assets reaching $24 billion at year-end 2007.
The Ivy Funds are managed by Ivy Investment Management Company and
distributed by its subsidiary, Ivy Funds Distributor, Inc. Please remember
that, as with any mutual fund, investment return and principal value of an
investment will fluctuate, and shares, when redeemed, may be worth more or
less than their original cost.
International investing involves additional risks including currency
fluctuations, political or economic conditions affecting the foreign
country, and differences in accounting standards and foreign regulations.
These risks are magnified in emerging markets.
Fixed income securities are subject to interest rate risk and, as such,
the net asset value of a fund may fall as interest rates rise.
Lipper rankings mentioned are for Class A shares and are based on
average annual total returns for the periods mentioned, ending December 31,
2007, but do not consider sales charges.
Investors should consider the investment objectives, risks, charges and
expenses of a fund carefully before investing. For a prospectus containing
this and other information for any of the Ivy Funds, call your financial
advisor or visit http://www.ivyfunds.com. Please read the prospectus
carefully before investing.
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