Ivy Funds Partners with Apollo Credit Management to Introduce Two Unique, Income-Oriented Funds

OVERLAND PARK, Kan.--(BUSINESS WIRE)-- Ivy Investment Management Company is launching two new income-oriented mutual funds in partnership with Apollo Credit Management that, once approved by the Securities and Exchange Commission, are scheduled to become available in October. Both funds will include allocation sleeves that will seek to follow current Ivy Fund strategies and the Apollo Total Return Fund strategy, which is Apollo’s flagship strategy in liquid alternative credit.

• Ivy Apollo Strategic Income Fund will include sleeves intended to replicate the Ivy High Income Fund strategy and the Ivy Global Bond Fund strategy, with flexible allocations to each of those strategies of between 10% and 70% of the Fund’s total assets. In addition, there will be a 20% target allocation (static) to a sleeve managed by Apollo consistent with its Apollo Total Return strategy.
• Ivy Apollo Multi-Asset Income Fund is expected to have a 50% allocation to fixed income and a 50% allocation to equities. It will include sleeves consistent with the Apollo Total Return strategy (20% of the Fund), Ivy High Income strategy (30% of the Fund), Ivy Global Equity Income strategy (40% of the Fund) and Ivy Global Real Estate strategy (10% of the Fund), which is subadvised by LaSalle Investment Management Securities.

“These funds enable investors to seek income by gaining exposure to a variety of asset classes in one investment,” said Thomas W. Butch, President and CEO of Ivy Funds Distributor, Inc. “We’re pleased to partner with Apollo, which brings experience in liquid and alternative credit investments.”

This is Ivy’s first investment product collaboration with Apollo. Apollo Credit Management is an affiliate of Apollo Global Management, L.P. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”). Founded in 1990, Apollo had approximately $163 billion in assets under management as of March 31, 2015. Its principal investment businesses focus on credit, private equity and real estate.

“We believe this represents a great opportunity for retail investors to gain exposure to a mix of asset categories that can’t easily be found in other traditional mutual fund products,” said Stephanie Drescher, partner and Global Head of Business Development at Apollo. “Apollo and Ivy Funds provide a compelling and complementary combination of capabilities and innovation to bring these distinctive funds to market.”

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 Investment Management Company 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 U.S. The firm had approximately $121 billion in total assets under management at June 30, 2015. Ivy Investment Management Company serves as investment advisor to the Ivy Funds. Ivy Funds Distributor, Inc. is principal underwriter and distributor to the Ivy Funds.

The information in this release is not complete and may be changed. A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but is not effective. The Fund may not sell these securities until such registration statement is effective. This message is not an offer to sell these securities and is not a solicitation of an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

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, visit www.ivyfunds.com. Please read the prospectus or summary prospectus carefully before investing.

Risk factors. The value of the Funds’ shares will change, and you could lose money on your investment. Although asset allocation among different sleeves and asset categories generally tends to limit risk and exposure to any one sleeve, the risk remains that the allocation of assets may skew toward a sleeve that performs poorly relative to the fund’s other sleeves, or to the market as a whole, which would result in the Funds performing poorly. While Ivy Investment Management Company (IICO) monitors the investments of Apollo in addition to the overall management of the Funds, including rebalancing the Funds’ target allocations, IICO and Apollo make investment decisions for their investment sleeves independently from one another. It is possible that the investment styles used by Apollo or IICO will not always complement each other, which could adversely affect the performance of the Funds. As a result, the Funds’ aggregate exposure to a particular industry or group of industries, or to a single issuer, could unintentionally be larger or smaller than intended.

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. Investment risks associated with investing in real estate securities, in addition to other risks, include rental income fluctuation, depreciation, property tax value changes and differences in real estate market values. 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 below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. Loans (including loan assignments, loan participations and other loan instruments) carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loans may be unsecured or not fully collateralized may be subject to restrictions on resale and sometimes trade infrequently on the secondary market.

These and other risks are more fully described in the Funds’ prospectus. Not all funds or fund classes may be offered at all broker/ dealers.

Ivy Funds Distributor, Inc. (7/15)

View source version on businesswire.com: http://www.businesswire.com/news/home/20150728005331/en/

Ivy Funds
Investor Contact:
Nicole Russell, 913-236-1880
VP, Investor Relations
or
Media Contact:
Roger Hoadley, 913-236-1993
VP, Communications

Source: Ivy Funds

You May Also Be Interested In

• Trump Media & Technology (DJT) Declines 17% on Concerns Stockholders May Sell Shares
• Johnson Controls (JCI) Prices $700M Notes Offering
• Vanda Pharmaceuticals (VNDA) Adopts Limited Duration Stockholder Rights Plan