The Ivy Funds team is launching a new fund and modifying another.
The Ivy International Balanced Fund will become the Ivy Global Income Allocation Fund. The name change signifies the fund's new ability to take advantage of investments opportunities both in the U.S. and internationally.
The new Ivy Global Equity Income Fund will invest equities,
primarily in developed markets, issued by companies that the PMs believe may generate a reasonable level of current income.
Thomas Butch, president and CEO of Ivy Funds Distributor, said, "These additions to the Ivy Funds lineup give investors the ability to pursue dividend income through investments around the world very efficiently, whether they want dividend paying equities or a broader allocation approach that includes fixed income."
Company Press Release
OVERLAND PARK, KS, June 4, 2012/- Effective today, Ivy Funds has expanded
its global product line, launching a new Ivy Global Equity Income Fund and
modifying an existing fund to bring to market Ivy Global Income Allocation
Fund. Together, these steps further enhance Ivy Funds' global product
lineup, providing additional global equity and allocation choices for
investors and financial advisors. The changes include:
Ivy International Balanced Fund becomes Ivy Global Income Allocation Fund:
Under its new moniker and expanded investment mandate, this fund, which has
an objective of seeking total return through a combination of current income
and capital appreciation, can go anywhere in the world to find the most
compelling equity and fixed-income investment opportunities. Until now,
because the fund was an international rather than a global fund, the fund's
manager was unable to take advantage of investment opportunities in the
United States. The fund was incepted in 1994 and will carry forward its
Ivy Global Equity Income Fund: A new fund that invests in equities,
primarily in developed markets, issued by companies that the portfolio
managers believe may generate a reasonable level of current income and that
demonstrate favorable prospects for total return. It may invest in U.S. and
firms of any size, though it plans to primarily invest in large-cap names.
The global nature of this fund makes it one of the first in the industry to
offer a truly global equity income opportunity.
These changes mean that the Ivy Funds family offers a comprehensive lineup
for a range of investor needs, including flexible portfolio funds that can
invest in any asset class around the world; allocation funds that typically
seek to maintain a consistent balance of investments within ranges defined
by each fund's prospectus; and funds designed to generate consistent income,
such as through dividend-paying stocks or high-yield and municipal bonds.
"Investors increasingly are looking for dividend-income potential, given
today's secular demographic realities and low-interest rate, slow-growth
economic environment," said Thomas W. Butch, president and CEO of Ivy Funds
Distributor, Inc. "These additions to the Ivy Funds lineup give investors
the ability to pursue dividend income through investments around the world
very efficiently, whether they want dividend paying equities or a broader
allocation approach that includes fixed income."
Ivy Global Income Allocation Fund is co-managed by John Maxwell, CFA, who
has 20 years of industry experience and has managed the former Ivy
International Balanced Fund for the last three years, and W. Jeffery Surles,
CFA, who has 11 years of industry experience and has been a fixed income
investment analyst with Ivy Funds for five years. Robert Nightingale, who
has been with Ivy Funds for 16 years, is assistant portfolio manager on the
Ivy Global Equity Income Fund is co-managed by Maxwell and Nightingale.
By prospectus, Ivy Global Income Allocation Fund will ordinarily invest at
least 35 percent of its total assets in equity investments, at least 25
percent in fixed-income securities and may invest up to 35 percent of its
total assets in non-investment grade (low-rated) debt securities, which
could provide additional income for shareholders, albeit at greater risk.
Its benchmark is a 60 percent/40 percent blend of the MSCI World High
Dividend Yield Index and the Barclays Multiverse Index, a custom blend
index. Barclays Multiverse Index is comprised of securities that represent
the global bond market. MSCI World High Dividend Yield Index is designed to
reflect the performance of equities (excluding REITs) with higher than
average dividend yields that are both sustainable and persistent.
Ivy Global Equity Income Fund, according to its prospectus, will invest at
least 80 percent of its net assets in equity securities, with a focus on
dividend-paying securities around the globe. Its benchmark is the MSCI World
High Dividend Yield Index.
Industry analysts report that equity income funds have grown in demand as
investors reach for yield.
According to Strategic Insight, for example, investors directed more than
$32 billion into equity income funds in 2011, one of the only positive
flow-garnering equity categories for the year.
Ivy Funds offers a broad fund lineup covering all major asset categories,
including international and domestic equity funds, specialty funds, fixed
income funds and money market funds.
Ivy Funds Distributor, Inc. is an affiliate of Waddell & Reed Financial,
Inc. (NYSE:WDR). Through its subsidiaries, Waddell & Reed Financial, Inc.
provides investment management and financial planning services to clients
throughout the United States. Ivy Investment Management Company serves as
investment advisor to the Ivy Funds. Ivy Funds Distributor, Inc. serves as
principal underwriter and distributor to the Ivy Funds.
Investors should consider the investment objectives, risks, charges and
expenses of a fund carefully before investing. For a prospectus, or if
available, a summary prospectus, containing this and other information for
any of the Ivy Funds, call your financial advisor or visit www.ivyfunds.com.
Please read the prospectus or summary prospectus carefully before investing.
Investment return and principal value will fluctuate, and it is possible to
lose money by investing.
Past performance is not a guarantee of future results.
Consider all factors. An investment in the Funds is not a bank deposit and
is not insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
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 the Funds
may fall as interest rates rise. Investing in high-income securities may
carry a greater risk of nonpayment or interest or principal than
higher-rated bonds. Dividend-paying investments may not experience the same
price appreciation as non-dividend paying instruments.
Dividend-paying companies may not pay a dividend or the dividend may be less
than expected. These and other risks are more fully described in the Funds'
prospectus. Not all funds or fund classes may be offered at all