0001193125-18-184565.txt : 20180605 0001193125-18-184565.hdr.sgml : 20180605 20180605170655 ACCESSION NUMBER: 0001193125-18-184565 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 100 FILED AS OF DATE: 20180605 DATE AS OF CHANGE: 20180605 EFFECTIVENESS DATE: 20180605 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Ivy Variable Insurance Portfolios CENTRAL INDEX KEY: 0000810016 IRS NUMBER: 481146010 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 033-11466 FILM NUMBER: 18882040 BUSINESS ADDRESS: STREET 1: 6300 LAMAR AVENUE CITY: OVERLAND PARK STATE: KS ZIP: 66202 BUSINESS PHONE: 9132362000 MAIL ADDRESS: STREET 1: P O BOX 29217 CITY: SHAWNEE MISSION STATE: KS ZIP: 66201-9217 FORMER COMPANY: FORMER CONFORMED NAME: Ivy Funds Variable Insurance Portfolios DATE OF NAME CHANGE: 20100301 FORMER COMPANY: FORMER CONFORMED NAME: Ivy Funds Variable Insurance Portfolios, Inc. DATE OF NAME CHANGE: 20080819 FORMER COMPANY: FORMER CONFORMED NAME: W&R TARGET FUNDS INC DATE OF NAME CHANGE: 20001026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Ivy Variable Insurance Portfolios CENTRAL INDEX KEY: 0000810016 IRS NUMBER: 481146010 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05017 FILM NUMBER: 18882039 BUSINESS ADDRESS: STREET 1: 6300 LAMAR AVENUE CITY: OVERLAND PARK STATE: KS ZIP: 66202 BUSINESS PHONE: 9132362000 MAIL ADDRESS: STREET 1: P O BOX 29217 CITY: SHAWNEE MISSION STATE: KS ZIP: 66201-9217 FORMER COMPANY: FORMER CONFORMED NAME: Ivy Funds Variable Insurance Portfolios DATE OF NAME CHANGE: 20100301 FORMER COMPANY: FORMER CONFORMED NAME: Ivy Funds Variable Insurance Portfolios, Inc. DATE OF NAME CHANGE: 20080819 FORMER COMPANY: FORMER CONFORMED NAME: W&R TARGET FUNDS INC DATE OF NAME CHANGE: 20001026 0000810016 S000006224 Ivy VIP Asset Strategy C000017158 Class II C000190645 Class I 0000810016 S000006225 Ivy VIP International Core Equity C000017159 Class II 0000810016 S000006227 Ivy VIP Micro Cap Growth C000017161 Class II C000190646 Class I 0000810016 S000006228 Ivy VIP Mid Cap Growth C000017162 Class II C000190647 Class I 0000810016 S000006229 Ivy VIP Government Money Market C000017163 Class II 0000810016 S000006231 Ivy VIP Securian Real Estate Securities C000017165 Class II 0000810016 S000006232 Ivy VIP Science and Technology C000017166 Class II C000190648 Class I 0000810016 S000006233 Ivy VIP Small Cap Growth C000017167 Class II 0000810016 S000006234 Ivy VIP Small Cap Core C000017168 Class II 0000810016 S000006235 Ivy VIP Balanced C000017169 Class II 0000810016 S000006236 Ivy VIP Value C000017170 Class II 0000810016 S000006237 Ivy VIP Corporate Bond C000017171 Class II 0000810016 S000006238 Ivy VIP Core Equity C000017172 Class II 0000810016 S000006239 Ivy VIP Global Equity Income C000017173 Class II 0000810016 S000006240 Ivy VIP Natural Resources C000017174 Class II 0000810016 S000006241 Ivy VIP Growth C000017175 Class II 0000810016 S000006242 Ivy VIP High Income C000017176 Class II C000190649 Class I 0000810016 S000006243 Ivy VIP Global Growth C000017177 Class II 0000810016 S000011749 Ivy VIP Energy C000032174 Class II C000190650 Class I 0000810016 S000020588 Ivy VIP Pathfinder Aggressive C000057543 Class II 0000810016 S000020589 Ivy VIP Pathfinder Moderately Aggressive C000057544 Class II 0000810016 S000020590 Ivy VIP Pathfinder Moderate C000057545 Class II 0000810016 S000020591 Ivy VIP Pathfinder Moderately Conservative C000057546 Class II 0000810016 S000020592 Ivy VIP Pathfinder Conservative C000057547 Class II 0000810016 S000029765 Ivy VIP Global Bond C000091475 Class II 0000810016 S000029766 Ivy VIP Limited-Term Bond C000091476 Class II 0000810016 S000041732 Ivy VIP Pathfinder Moderate - Managed Volatility C000129560 Class II 0000810016 S000041733 Ivy VIP Pathfinder Moderately Aggressive - Managed Volatility C000129561 Class II 0000810016 S000041734 Ivy VIP Pathfinder Moderately Conservative - Managed Volatility C000129562 Class II 485BPOS 1 d599554d485bpos.htm IVY VARIABLE INSURANCE PORTFOLIOS Ivy Variable Insurance Portfolios

File No. 811-5017

File No. 33-11466

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

 

Form N-1A

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933   
Post-Effective Amendment No. 74   

and/or

REGISTRATION STATEMENT

UNDER

THE INVESTMENT COMPANY ACT OF 1940   
Amendment No. 74   

IVY VARIABLE INSURANCE PORTFOLIOS

(a Delaware statutory trust)

(Exact Name as Specified in Charter)

 

6300 Lamar Avenue, Overland Park, Kansas   66202-4200
(Address of Principal Executive Office)   (Zip Code)

Registrant’s Telephone Number, including Area Code (913) 236-2000

Philip A. Shipp

6300 Lamar Avenue

Overland Park, Kansas 66202-4200

(Name and Address of Agent for Service)

 

 

It is proposed that this filing will become effective

 

immediately upon filing pursuant to paragraph (b)
on (date) pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)(1)
on (date) pursuant to paragraph (a)(1)
75 days after filing pursuant to paragraph (a)(2)
on (date) pursuant to paragraph (a)(2) of Rule 485
this post-effective amendment designates a new effective date for a previously filed post-effective amendment

DECLARATION REQUIRED BY RULE 24f-2

The issuer has registered an indefinite amount of its securities under the Securities Act of 1933 pursuant to Rule 24f-2. Notice for the Registrant’s fiscal year ended December 31, 2017 was filed on March 15, 2018.

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and/or the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Post-Effective Amendment pursuant to Rule 485(b) of the Securities Act of 1933 and has duly caused this Post-Effective Amendment to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Overland Park, and State of Kansas, on the 5th day of June, 2018.

IVY VARIABLE INSURANCE PORTFOLIOS

A Delaware Statutory Trust

(Registrant)

By /s/Philip J. Sanders

Philip J. Sanders, President

Pursuant to the requirements of the Securities Act of 1933, and/or the Investment Company Act of 1940, this Post-Effective Amendment has been signed below by the following persons in the capacities indicated on the 5th day of June, 2018.

 

Signatures       Title   
/s/Joseph Harroz, Jr.*       Chairman and Trustee   
Joseph Harroz, Jr.         
/s/Philip J. Sanders       President   
Philip J. Sanders         
/s/Joseph W. Kauten       Vice President, Treasurer   
Joseph W. Kauten       and Principal Financial Officer   
/s/Jarold W. Boettcher*       Trustee   
Jarold W. Boettcher         
/s/James M. Concannon*       Trustee   
James M. Concannon         
/s/James D. Gressett*       Trustee   
James D. Gressett         
/s/Henry J. Herrmann*       Trustee   
Henry J. Herrmann         
/s/Glendon E. Johnson, Jr.*       Trustee   
Glendon E. Johnson, Jr.         
/s/Frank J. Ross, Jr.*       Trustee   
Frank J. Ross, Jr.         
/s/Michael G. Smith*       Trustee   
Michael G. Smith         
/s/Edward M. Tighe*       Trustee   
Edward M. Tighe         

 

*By:     /s/Philip A. Shipp    
      Philip A. Shipp
      Attorney-in-Fact

 

ATTEST:     /s/Jennifer K. Dulski
      Jennifer K. Dulski
      Secretary


EXHIBIT INDEX

 

Index No.

  

Description of Exhibit

EX-101.INS    XBRL Instance Document
EX-101.SCH    XBRL Taxonomy Extension Schema Document
EX-101.CAL    XBRL Taxonomy Extension Calculation Linkbase
EX-101.DEF    XBRL Taxonomy Extension Definition Linkbase
EX-101.LAB    XBRL Taxonomy Extension Labels Linkbase
EX-101.PRE    XBRL Taxonomy Extension Presentation Linkbase
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period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000274 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000277 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000272 column period compact * ~</div> Ivy VIP Pathfinder Moderately Aggressive &#8212; Managed Volatility <b>Objective </b> To seek to provide growth of capital, but also to seek income consistent with a moderately aggressive level of risk as compared to the other Ivy VIP Pathfinder Managed Volatility Portfolios, while seeking to manage volatility of investment return. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your direct and indirect costs, combined, would be: <b>Portfolio Turnover </b> The Portfolio does not incur transaction costs, such as commissions, when it buys and sells shares of Underlying Funds that are Portfolios of the Trust (or &#8220;turns over&#8221; its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly (including, but not limited to, derivative securities described below). If the Portfolio were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual portfolio operating expenses or in the example and would affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 19% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Pathfinder Moderately Aggressive &#8212; Managed Volatility seeks to achieve its objective by investing primarily in various Underlying Funds and by utilizing a volatility management strategy that is intended to manage volatility of the Portfolio&#8217;s equity returns. The Portfolio&#8217;s investment manager, Ivy Investment Management Company (IICO), manages the Portfolio&#8217;s investments in the Underlying Funds and other assets that are not part of the volatility management strategy. An investment subadviser, Securian Asset Management, Inc. (Securian), manages the volatility management strategy of the Portfolio. <br/><br/>Under normal circumstances, IICO allocates approximately 90-95% of the Portfolio&#8217;s assets among the asset classes below so that approximately 40-55% of the value of this portion of the Portfolio&#8217;s assets is in the U.S. stocks class, approximately 15-30% of this portion of the Portfolio&#8217;s assets is in the international/global stocks class, approximately 0-40% of this portion of the Portfolio&#8217;s assets is in the bonds class, and approximately 5-35% of this portion of the Portfolio&#8217;s assets is in the short-term investments class. Ivy VIP Pathfinder Moderately Aggressive &#8212; Managed Volatility implements this allocation by investing primarily in the Underlying Funds shown below. The Portfolio typically will invest in Class I shares of an Underlying Fund to the extent offered by the Underlying Fund; otherwise the Portfolio will invest in Class II shares of an Underlying Fund. <br/><br/>Ivy VIP Pathfinder Moderately Aggressive &#8212; Managed Volatility allocates its remaining assets to a volatility management strategy that is intended to manage the volatility of the Portfolio&#8217;s equity returns in an attempt to stabilize the equity returns of the Portfolio. Securian does not intend to attempt to manage the volatility of the Portfolio&#8217;s fixed-income returns. The investment subadviser, Securian, executes this volatility management strategy by increasing or reducing, through the use of exchange-traded futures contracts on certain equity indexes, the Portfolio&#8217;s exposure to equity assets. For example, when the recent historical volatility of the equity portion of the Portfolio is relatively high, Securian will seek to reduce the Portfolio&#8217;s exposure to equity assets by either selling exchange-traded futures contracts (taking short positions in such contracts) or reducing its long positions in exchange-traded futures contracts. When the recent historical volatility of the equity portion of the Portfolio is relatively low, Securian will seek to increase the Portfolio&#8217;s exposure to equity assets by either purchasing exchange-traded futures contracts (taking long positions in such contracts) or reducing its short positions in exchange-traded futures contracts. Volatility is a statistical measurement of the magnitude of fluctuations in the value of a financial instrument or index over time. Volatility may result in rapid and dramatic price swings. <br/><br/>The amount of Portfolio assets allocated to the volatility management strategy typically will, under normal circumstances, range between 5-10% of the market value of the Portfolio&#8217;s assets, which will consist primarily of assets maintained as margin for those futures contracts and also may include cash held for use in the strategy. Shorter-term allocations may vary from this 5-10% range. In order to maintain its derivatives positions in the volatility management strategy, IICO may, from time to time, sell certain Portfolio assets, which may include redemption of shares of Underlying Funds. <br/><br/>The use of exchange-traded futures contracts may have the effect of introducing leverage into the Portfolio, since the amount required to enter into such contracts is small in relation to the investment exposure of such contracts. Although the amount of the Portfolio&#8217;s assets allocated to the volatility management strategy typically will range between 5-10%, the volatility management strategy may seek to increase or decrease the Portfolio&#8217;s exposure to equity assets by a substantial amount when the recent historical volatility in the equity portion of the Portfolio is relatively high or low and create investment exposure greater than the amount of assets used to implement the strategy. However, the Portfolio&#8217;s effective exposure to equity assets with exchange-traded futures contracts from the volatility management strategy typically will not exceed the maximum equity allocation shown below or decrease the Portfolio&#8217;s effective exposure to equity assets below 20% of the Portfolio&#8217;s assets.<br/><br/><b>Investment Process for Investments in Underlying Funds </b><br/><br/>Ivy VIP Pathfinder Moderately Aggressive &#8212; Managed Volatility&#8217;s currently anticipated allocation ranges for each asset class, as well as the Portfolio&#8217;s target allocation of investments among some or all of the Underlying Funds, are summarized in the table below. Shorter-term allocations may vary from the target allocation.<br/><br/><table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="81%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td valign="bottom" width="1%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom" style="border-bottom:1px solid #4f4f4f">Asset Class</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #4f4f4f">Target&nbsp;Allocations</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>U.S. Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">40-55%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Mid Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Core</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Value</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>International/Global Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">15-30%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Equity Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-30%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-30%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP International Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-30%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Bonds</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-40%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Corporate Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-40%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP High Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Short-Term Investments</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">5-35%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Government Money Market</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Limited-Term Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Total Allocation</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">100%</td> <td valign="bottom">&nbsp;</td></tr> </table><br/>These allocations in the Underlying Funds are projections only and may be changed by IICO from time to time. Actual allocations in the Underlying Funds are not limited to the ranges shown, and ranges may vary from those shown above. IICO monitors Ivy VIP Pathfinder Moderately Aggressive &#8212; Managed Volatility&#8217;s holdings and cash flow and will periodically adjust the Portfolio&#8217;s asset allocation in the Underlying Funds to realign it with the Portfolio&#8217;s risk profile and investment strategies. IICO evaluates Ivy VIP Pathfinder Moderately Aggressive &#8212; Managed Volatility&#8217;s asset allocation in the Underlying Funds on an ongoing basis in view of its risk profile and strategies. This means that allocation changes in the Underlying Funds will be made as needed in the view of IICO. IICO applies a long-term investment horizon with respect to Ivy VIP Pathfinder Moderately Aggressive &#8212; Managed Volatility; therefore, allocation changes in the Underlying Funds may not be made in response to short-term market conditions. The Portfolio does not intend to actively trade among the Underlying Funds, nor does it intend to attempt to capture short-term market opportunities. <br/><br/>By owning shares of the Underlying Funds, the Portfolio indirectly holds a well-diversified mixture of both growth-oriented and value-oriented U.S. and international/global stocks and, to a lesser extent, a mixture of investment grade and non-investment grade corporate bonds, U.S. government securities and money market instruments. Although the majority of the Portfolio&#8217;s indirect stock holdings are of U.S. and foreign large cap companies, the Portfolio is likely to have some exposure to mid cap and small cap companies. <br/><br/>Ivy VIP Pathfinder Moderately Aggressive &#8212; Managed Volatility is intended for investors who want to maximize returns over the long term, who have a tolerance for possible short-term losses and who seek some additional diversification but also seek to manage the volatility of their investment. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li> <b>Derivatives Risk.</b> The use of derivatives presents several risks, including the risk that these instruments may change in value in a manner that adversely affects the Portfolio&#8217;s net asset value (NAV) and the risk that fluctuations in the value of the derivatives may not correlate with the reference instrument underlying the derivative. Derivatives can be highly complex, can create investment leverage, may perform in unanticipated ways and may be highly volatile, and the Portfolio could lose more than the amount it invests. Derivatives may be difficult to value and may at times be highly illiquid, and the Portfolio may not be able to close out or sell a derivative position at a particular time or at an anticipated price. Moreover, some derivatives are more sensitive to interest rate changes and market price fluctuations than others. To the extent the judgment of Securian as to certain anticipated price movements is incorrect, the risk of loss may be greater than if the derivative technique(s) had not been used. When used for hedging, the change in value of the derivative also may not correlate perfectly with the security or other risk being hedged. Suitable derivatives may not be available in all circumstances, and there can be no assurance that the Portfolio will use derivatives to reduce exposure to other risks when that might be beneficial. Derivatives also may be subject to counterparty credit risk, which includes the risk that the Portfolio may sustain a loss as a result of the insolvency or bankruptcy of, or other non-compliance by, another party to the transaction. When the Portfolio uses derivatives, it likely will be required to provide margin or collateral and/or segregate cash or other liquid assets in a manner that satisfies contractual undertakings and regulatory requirements. The need to provide margin or collateral and/or segregate assets could limit the Portfolio&#8217;s ability to pursue other opportunities as they arise. Ongoing changes to regulation of the derivatives markets and potential changes in the regulation of funds using derivatives instruments could limit the Portfolio&#8217;s ability to pursue its investment strategies.</li><li><b>Fund of Funds Risk.</b> The ability of the Portfolio to meet its investment objective depends both on the allocation of its assets among the Underlying Funds and the ability of those funds to meet their respective investment objectives. The Portfolio&#8217;s share price will likely change daily based on the performance of the Underlying Funds in which it invests. In general, the Portfolio is subject to the same risks as those of the Underlying Funds it holds. Because the Portfolio is weighted towards Underlying Funds that invest in stocks, both U.S. and foreign, including mid cap and small cap stocks, as well as bonds and short-term instruments, the Portfolio is more subject to the risks associated with those investments.</li></ul><blockquote><ul type="square"><li><b>Equity Funds Risk.</b> The Portfolio invests in equity funds, for which a principal risk is market risk, the chance that stock prices overall will decline over short or even long periods of time. This includes the risk that returns from the stock market segments in which the Portfolio is most heavily indirectly invested may underperform other asset classes, other market segments or the overall stock market. The values of certain types of stocks, such as stocks of small cap companies and foreign companies, may fluctuate more widely than others. The prices of small cap company stocks may be based, in part, on future expectations rather than current achievements.</li><li><b>Bond Funds Risk.</b> The principal risks that may be encountered by the Portfolio&#8217;s investments in bond funds are: bond prices overall may decline when interest rates rise (interest rate risk); a bond issuer may fail to pay interest and principal in a timely manner (credit risk); and a fixed-income security issuer may repay a higher yielding bond before its maturity date, during periods of falling interest rates (reinvestment risk). Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally.</li><li><b>Foreign Securities Risk.</b> A portion of the Portfolio&#8217;s assets may be invested in funds with significant exposure to foreign securities, including exposure to emerging markets. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. Furthermore, because foreign securities may be denominated in foreign currencies, the value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations.</li></ul></blockquote><ul type="square"><li><b>Investment Company Securities Risk.</b> Investment in other investment companies typically reflects the risks of the types of securities in which the investment companies invest. When the Portfolio invests in another investment company, shareholders of the Portfolio bear their proportionate share of the other investment company&#8217;s fees and expenses as well as their share of the Portfolio&#8217;s fees and expenses, which could result in the duplication of certain fees.</li><li><b>Leveraging Risk.</b> The risk that certain transactions of the Portfolio, such as transactions in derivative instruments, may give rise to leverage, causing the Portfolio to be more volatile than if it had not been leveraged and can result in losses to the Portfolio that exceed the amount originally invested. Because of leverage, the Portfolio&#8217;s investment exposure may exceed the Portfolio&#8217;s net assets.</li><li><b>Managed Volatility Strategy Risk.</b> Securian may be unsuccessful in managing volatility, and there is a risk that the Portfolio may experience a high level of volatility in its returns. The Portfolio&#8217;s holdings are subject to price volatility, and the Portfolio may not be any less volatile than the market as a whole and could be more volatile. In addition, there can be no guarantee that the Portfolio will achieve its goal of managing the volatility of its equity returns. Furthermore, while the management of volatility seeks competitive returns with more consistent volatility, the management of volatility does not ensure that the Portfolio will deliver competitive returns. Additionally, even if successful, the Portfolio&#8217;s management of volatility also may generally result in the Portfolio&#8217;s NAV increasing to a lesser degree than the markets (for example, in a rising market with relatively high volatility) or decreasing to a greater degree than the market (for example, in a declining market with relatively low volatility). The Portfolio&#8217;s managed volatility strategy may expose the Portfolio to losses (some of which may be sudden) to which it would not have otherwise been exposed if it invested only in Underlying Funds. Additionally, the derivatives used by Securian to hedge the value of the Portfolio are not identical to the Underlying Funds, and as a result, the Portfolio&#8217;s investment in derivatives may decline in value at the same time as the Portfolio&#8217;s investment in Underlying Funds. Securian does not intend to attempt to manage the volatility of the Portfolio&#8217;s fixed-income returns. It is possible that the fixed-income portion of the Portfolio, whose volatility would not be managed by the volatility management strategy, could become more volatile than the equity portion of the Portfolio.</li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on the skill of IICO and/or Securian in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that their decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. Furthermore, IICO may alter the asset allocation of the Portfolio among the Underlying Funds at its discretion. A material change in such asset allocation could affect both the level of risk and the potential for gain or loss.</li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.</li><li><b>Other Risks Applicable to a Fund of Funds Structure.</b> There are other risks associated with a Fund of Funds structure. IICO has the authority to select and replace Underlying Funds. IICO is subject to a potential conflict of interest in doing so because IICO serves as the investment manager to the Underlying Funds and the advisory fees paid by some of the Underlying Funds are higher than fees paid by other Underlying Funds. It is important to note, however, that IICO has a fiduciary duty to the Portfolio and must act in the Portfolio&#8217;s best interests.</li></ul>Additional information about the risks of the Underlying Funds is provided in the Portfolio&#8217;s prospectus in their respective sections and in the section entitled Additional Information about Principal Investment Strategies, Other Investments and Risks. <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 4.87% (the first quarter of 2017) and the lowest quarterly return was -6.26% (the third quarter of 2015). Average Annual Total Returns<br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 800.777.6472 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2018-08-01 2013-08-01 2015-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000286 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000285 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000284 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000287 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000282 column period compact * ~</div> Ivy VIP Pathfinder Moderately Conservative &#8212; Managed Volatility <b>Objective </b> To seek to provide total return consistent with a moderately conservative level of risk as compared to the other Ivy VIP Pathfinder Managed Volatility Portfolios, while seeking to manage volatility of investment return. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your direct and indirect costs, combined, would be: <b>Portfolio Turnover </b> <b>Principal Investment Strategies </b> Ivy VIP Pathfinder Moderately Conservative &#8212; Managed Volatility seeks to achieve its objective by investing primarily in various Underlying Funds and by utilizing a volatility management strategy that is intended to manage volatility of the Portfolio&#8217;s equity returns. The Portfolio&#8217;s investment manager, Ivy Investment Management Company (IICO), manages the Portfolio&#8217;s investments in the Underlying Funds and other assets that are not part of the volatility management strategy. An investment subadviser, Securian Asset Management, Inc. (Securian), manages the volatility management strategy of the Portfolio. <br/><br/>Under normal circumstances, IICO allocates approximately 90-95% of the Portfolio&#8217;s assets among the asset classes below so that approximately 30-45% of the value of this portion of the Portfolio&#8217;s assets is in the U.S. stocks class, approximately 5-20% of this portion of the Portfolio&#8217;s assets is in the international/global stocks class, approximately 0-50% of this portion of the Portfolio&#8217;s assets is in the bonds class, and approximately 15-55% of this portion of the Portfolio&#8217;s assets is in the short-term investments class. Ivy VIP Pathfinder Moderately Conservative &#8212; Managed Volatility implements this allocation by investing primarily in the Underlying Funds shown below. The Portfolio typically will invest in Class I shares of an Underlying Fund to the extent offered by the Underlying Fund; otherwise the Portfolio will invest in Class II shares of an Underlying Fund. <br/><br/>Ivy VIP Pathfinder Moderately Conservative &#8212; Managed Volatility allocates its remaining assets to a volatility management strategy that is intended to manage the volatility of the Portfolio&#8217;s equity returns in an attempt to stabilize the equity returns of the Portfolio. Securian does not intend to attempt to manage the volatility of the Portfolio&#8217;s fixed-income returns. The investment subadviser, Securian, executes this volatility management strategy by increasing or reducing, through the use of exchange-traded futures contracts on certain equity indexes, the Portfolio&#8217;s exposure to equity assets. For example, when the recent historical volatility of the equity portion of the Portfolio is relatively high, Securian will seek to reduce the Portfolio&#8217;s exposure to equity assets by either selling exchange-traded futures contracts (taking short positions in such contracts) or reducing its long positions in exchange-traded futures contracts. When the recent historical volatility of the equity portion of the Portfolio is relatively low, Securian will seek to increase the Portfolio&#8217;s exposure to equity assets by either purchasing exchange-traded futures contracts (taking long positions in such contracts) or reducing its short positions in exchange-traded futures contracts. Volatility is a statistical measurement of the magnitude of fluctuations in the value of a financial instrument or index over time. Volatility may result in rapid and dramatic price swings. <br/><br/>The amount of Portfolio assets allocated to the volatility management strategy typically will, under normal circumstances, range between 5-10% of the market value of the Portfolio&#8217;s assets, which will consist primarily of assets maintained as margin for those futures contracts and also may include cash held for use in the strategy. Shorter-term allocations may vary from this 5-10% range. In order to maintain its derivatives positions in the volatility management strategy, IICO may, from time to time, sell certain Portfolio assets, which may include redemption of shares of Underlying Funds. <br/><br/>The use of exchange-traded futures contracts may have the effect of introducing leverage into the Portfolio, since the amount required to enter into such contracts is small in relation to the investment exposure of such contracts. Although the amount of the Portfolio&#8217;s assets allocated to the volatility management strategy typically will range between 5-10%, the volatility management strategy may seek to increase or decrease the Portfolio&#8217;s exposure to equity assets by a substantial amount when the recent historical volatility in the equity portion of the Portfolio is relatively high or low and create investment exposure greater than the amount of assets used to implement the strategy. However, the Portfolio&#8217;s effective exposure to equity assets with exchange-traded futures contracts from the volatility management strategy typically will not exceed the maximum equity allocation shown below or decrease the Portfolio&#8217;s effective exposure to equity assets below 10% of the Portfolio&#8217;s assets.<br/><br/><b>Investment Process for Investments in Underlying Funds </b><br/><br/>Ivy VIP Pathfinder Moderately Conservative &#8212; Managed Volatility&#8217;s currently anticipated allocation ranges for each asset class, as well as the Portfolio&#8217;s target allocation of investments among some or all of the Underlying Funds, are summarized in the table below. Shorter-term allocations may vary from the target allocation.<br/><br/><table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="1%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom" style="border-bottom:1px solid #4f4f4f">Asset Class</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #4f4f4f">Target&nbsp;Allocations</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>U.S. Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">30-45%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Mid Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Core</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Value</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>International/Global Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">5-20%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Equity Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP International Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Bonds</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-50%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Corporate Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-50%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP High Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-5%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Short-Term Investments</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">15-55%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Government Money Market</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-55%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Limited-Term Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-55%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Total Allocation</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">100%</td> <td valign="bottom">&nbsp;</td></tr> </table><br/> These allocations in the Underlying Funds are projections only and may be changed by IICO from time to time. Actual allocations in the Underlying Funds are not limited to the ranges shown and ranges may vary from those shown above. IICO monitors Ivy VIP Pathfinder Moderately Conservative &#8212; Managed Volatility&#8217;s holdings and cash flow and will periodically adjust the Portfolio&#8217;s asset allocation in the Underlying Funds to realign it with the Portfolio&#8217;s risk profile and investment strategies. IICO evaluates Ivy VIP Pathfinder Moderately Conservative &#8212; Managed Volatility&#8217;s asset allocation in the Underlying Funds on an ongoing basis in view of its risk profile and strategies. This means that allocation changes in the Underlying Funds will be made as needed in the view of IICO. IICO applies a long-term investment horizon with respect to Ivy VIP Pathfinder Moderately Conservative &#8212; Managed Volatility; therefore, allocation changes in the Underlying Funds may not be made in response to short-term market conditions. The Portfolio does not intend to actively trade among the Underlying Funds, nor does it intend to attempt to capture short-term market opportunities. <br/><br/>By owning shares of the Underlying Funds, the Portfolio indirectly holds a diversified mixture of stocks of U.S. and, to a lesser extent, international/global companies that typically are large cap; the Portfolio also indirectly holds a mixture of investment grade corporate bonds, U.S. government securities and, to a lesser extent, a mixture of non-investment grade corporate bonds and money market instruments. <br/><br/>Ivy VIP Pathfinder Moderately Conservative &#8212; Managed Volatility is intended for investors who have a lower tolerance for risk but seek to manage volatility of their investment and whose primary goal is income, who have a shorter time horizon or who are willing to accept some amount of market volatility in exchange for greater potential income and growth. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li> <b>Derivatives Risk.</b> The use of derivatives presents several risks, including the risk that these instruments may change in value in a manner that adversely affects the Portfolio&#8217;s net asset value (NAV) and the risk that fluctuations in the value of the derivatives may not correlate with the reference instrument underlying the derivative. Derivatives can be highly complex, can create investment leverage, may perform in unanticipated ways and may be highly volatile, and the Portfolio could lose more than the amount it invests. Derivatives may be difficult to value and may at times be highly illiquid, and the Portfolio may not be able to close out or sell a derivative position at a particular time or at an anticipated price. Moreover, some derivatives are more sensitive to interest rate changes and market price fluctuations than others. To the extent the judgment of Securian as to certain anticipated price movements is incorrect, the risk of loss may be greater than if the derivative technique(s) had not been used. When used for hedging, the change in value of the derivative also may not correlate perfectly with the security or other risk being hedged. Suitable derivatives may not be available in all circumstances, and there can be no assurance that the Portfolio will use derivatives to reduce exposure to other risks when that might be beneficial. Derivatives also may be subject to counterparty credit risk, which includes the risk that the Portfolio may sustain a loss as a result of the insolvency or bankruptcy of, or other non-compliance by, another party to the transaction. When the Portfolio uses derivatives, it likely will be required to provide margin or collateral and/or segregate cash or other liquid assets in a manner that satisfies contractual undertakings and regulatory requirements. The need to provide margin or collateral and/or segregate assets could limit the Portfolio&#8217;s ability to pursue other opportunities as they arise. Ongoing changes to regulation of the derivatives markets and potential changes in the regulation of funds using derivatives instruments could limit the Portfolio&#8217;s ability to pursue its investment strategies. </li><li><b>Fund of Funds Risk.</b> The ability of the Portfolio to meet its investment objective depends both on the allocation of its assets among the Underlying Funds and the ability of those funds to meet their respective investment objectives. The Portfolio&#8217;s share price will likely change daily based on the performance of the Underlying Funds in which it invests. In general, the Portfolio is subject to the same risks as those of the Underlying Funds it holds. Because the Portfolio is weighted towards Underlying Funds that invest in stocks, both U.S. and foreign, including mid cap and small cap stocks, as well as bonds and short-term instruments, the Portfolio is more subject to the risks associated with those investments. </li></ul><blockquote><ul type="square"><li><b>Equity Funds Risk.</b> The Portfolio invests in equity funds, for which a principal risk is market risk, the chance that stock prices overall will decline over short or even long periods of time. This includes the risk that returns from the stock market segments in which the Portfolio is most heavily indirectly invested may underperform other asset classes, other market segments or the overall stock market. The values of certain types of stocks, such as stocks of small cap companies and foreign companies, may fluctuate more widely than others. The prices of small cap company stocks may be based, in part, on future expectations rather than current achievements. </li><li><b>Bond Funds Risk.</b> The principal risks that may be encountered by the Portfolio&#8217;s investments in bond funds are: bond prices overall may decline when interest rates rise (interest rate risk); a bond issuer may fail to pay interest and principal in a timely manner (credit risk); and a fixed-income security issuer may repay a higher yielding bond before its maturity date, during periods of falling interest rates (reinvestment risk). Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li><li><b>Foreign Securities Risk.</b> A portion of the Portfolio&#8217;s assets may be invested in funds with significant exposure to foreign securities, including exposure to emerging markets. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. Furthermore, because foreign securities may be denominated in foreign currencies, the value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. </li></ul></blockquote><ul type="square"><li><b>Investment Company Securities Risk.</b> Investment in other investment companies typically reflects the risks of the types of securities in which the investment companies invest. When the Portfolio invests in another investment company, shareholders of the Portfolio bear their proportionate share of the other investment company&#8217;s fees and expenses as well as their share of the Portfolio&#8217;s fees and expenses, which could result in the duplication of certain fees. </li><li><b>Leveraging Risk.</b> The risk that certain transactions of the Portfolio, such as transactions in derivative instruments, may give rise to leverage, causing the Portfolio to be more volatile than if it had not been leveraged and can result in losses to the Portfolio that exceed the amount originally invested. Because of leverage, the Portfolio&#8217;s investment exposure may exceed the Portfolio&#8217;s net assets. </li><li><b>Managed Volatility Strategy Risk.</b> Securian may be unsuccessful in managing volatility, and there is a risk that the Portfolio may experience a high level of volatility in its returns. The Portfolio&#8217;s holdings are subject to price volatility, and the Portfolio may not be any less volatile than the market as a whole and could be more volatile. In addition, there can be no guarantee that the Portfolio will achieve its goal of managing the volatility of its equity returns. Furthermore, while the management of volatility seeks competitive returns with more consistent volatility, the management of volatility does not ensure that the Portfolio will deliver competitive returns. Additionally, even if successful, the Portfolio&#8217;s management of volatility also may generally result in the Portfolio&#8217;s NAV increasing to a lesser degree than the markets (for example, in a rising market with relatively high volatility) or decreasing to a greater degree than the market (for example, in a declining market with relatively low volatility). The Portfolio&#8217;s managed volatility strategy may expose the Portfolio to losses (some of which may be sudden) to which it would not have otherwise been exposed if it invested only in Underlying Funds. Additionally, the derivatives used by Securian to hedge the value of the Portfolio are not identical to the Underlying Funds, and as a result, the Portfolio&#8217;s investment in derivatives may decline in value at the same time as the Portfolio&#8217;s investment in Underlying Funds. Securian does not intend to attempt to manage the volatility of the Portfolio&#8217;s fixed-income returns. It is possible that the fixed-income portion of the Portfolio, whose volatility would not be managed by the volatility management strategy, could become more volatile than the equity portion of the Portfolio. </li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on the skill of IICO and/or Securian in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that their decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. Furthermore, IICO may alter the asset allocation of the Portfolio among the Underlying Funds at its discretion. A material change in such asset allocation could affect both the level of risk and the potential for gain or loss. </li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li><b>Other Risks Applicable to a Fund of Funds Structure.</b> There are other risks associated with a Fund of Funds structure. IICO has the authority to select and replace Underlying Funds. IICO is subject to a potential conflict of interest in doing so because IICO serves as the investment manager to the Underlying Funds and the advisory fees paid by some of the Underlying Funds are higher than fees paid by other Underlying Funds. It is important to note, however, that IICO has a fiduciary duty to the Portfolio and must act in the Portfolio&#8217;s best interests. </li></ul>Additional information about the risks of the Underlying Funds is provided in the Portfolio&#8217;s prospectus in their respective sections and in the section entitled Additional Information about Principal Investment Strategies, Other Investments and Risks. <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 3.69% (the first quarter of 2017) and the lowest quarterly return was -4.30% (the third quarter of 2015). Average Annual Total Returns<br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. 2013-08-01 highest quarterly return 2017-03-31 lowest quarterly return 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2015-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000296 column period compact * ~</div> The Portfolio does not incur transaction costs, such as commissions, when it buys and sells shares of Underlying Funds that are Portfolios of the Trust (or &#8220;turns over&#8221; its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly (including, but not limited to, derivative securities described below). If the Portfolio were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual portfolio operating expenses or in the example and would affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 26% of the average value of its portfolio. <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000113 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000013 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000023 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000033 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000043 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000053 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000063 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000073 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000293 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000083 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000093 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000103 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000123 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000273 column period compact * ~</div> The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio's contractual class waiver. <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000153 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000143 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000133 column period compact * ~</div> 2016-03-31 2015-12-31 2015-09-30 2015-06-30 2015-03-31 2014-12-31 2014-09-30 2014-06-30 2014-03-31 2013-12-31 2013-09-30 2013-06-30 2013-03-31 2012-12-31 2012-09-30 2012-06-30 2012-03-31 2011-12-31 2011-09-30 2011-06-30 2011-03-31 2010-12-31 highest quarterly return 2017-03-31 lowest quarterly return 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2013-08-01 2013-08-01 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000295 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000294 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000297 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000292 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000016 column period compact * ~</div> 2013-08-01 2013-08-01 2013-08-01 highest quarterly return (Effective February 6, 2018, the MSCI ACWI Index is the Portfolio?s new benchmark index. IICO believes that this index is a more representative index for the types of securities that the Portfolio purchases than the three indexes noted below.) <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000173 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000163 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000183 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000193 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000203 column period compact * ~</div> 2010-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000213 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000223 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000233 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000263 column period compact * ~</div> 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-13 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000283 column period compact * ~</div> Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. April 30, 2019 Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000243 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualPortfolioOperatingExpenses000253 column period compact * ~</div> 2017-03-31 lowest quarterly return 2018-04-30 485BPOS 2017-12-31 Ivy Variable Insurance Portfolios 0000810016 false 2018-04-27 2018-04-30 Ivy VIP Core Equity <b>Objective </b> To seek to provide capital growth and appreciation. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees <br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year, that the Portfolio&#8217;s operating expenses remain the same, and that expenses were capped for a one-year period, as indicated above. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 78% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Core Equity seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities, primarily in common stocks of large-capitalization companies. The Portfolio seeks to invest in companies that IICO believes have a leading market position or sustainable competitive advantage in their industry. Large-capitalization companies typically are companies with market capitalizations of at least $10 billion at the time of acquisition. The Portfolio invests in securities that have the potential for capital appreciation, or that IICO expects to resist market decline. Although the Portfolio primarily invests in securities issued by large-capitalization companies, it may invest in securities issued by companies of any size. The Portfolio may invest in securities of companies across the valuation spectrum, including securities issued by growth and value companies. <br/><br/>IICO believes that long-term earnings potential relative to market expectations is an important component for stock performance. IICO balances a top-down (assessing the market environment) approach with a bottom-up (researching individual issuers) analysis when selecting securities for the Portfolio, and seeks to exploit what it believes to be catalysts for multi-year earnings growth in companies that it believes have strong or strengthening competitive advantages. Earnings catalysts are diversified across both thematic and company-specific projections. <br/><br/>From a top-down perspective, IICO seeks to identify current trends or themes which indicate specific industries that have the potential to experience multi-year growth. IICO considers various thematic catalysts in its analysis, including major macro-economic and political forces, cyclical inflections, changes in consumer behavior and technology shifts. Once a trend or theme is identified, IICO seeks to invest for the Portfolio in what it believes are dominant companies that will benefit from these trends or themes; including companies that IICO believes have long-term earnings potential that exceeds market expectations. <br/><br/>Through its bottom-up stock selection, IICO searches for companies for which it believes market expectations are too low with regard to the ability of the companies to grow their businesses. <br/><br/>In selecting securities for the Portfolio, IICO may consider whether a company has new products to introduce, has undergone cost restructuring or a management change, or has improved its execution, among other factors. <br/><br/>The Portfolio typically holds a limited number of stocks (generally 40 to 50). <br/><br/>Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. Among other factors, IICO considers whether, in its opinion, the security has fully appreciated according to IICO&#8217;s forecast, has ceased to offer the prospect of significant growth potential, has had its competitive barriers diminished, has seen its earnings catalyst lose its impact, or has performed below IICO&#8217;s expectations regarding the company&#8217;s long-term earnings potential. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security if that issuer&#8217;s competitive advantage has diminished or if the Portfolio&#8217;s portfolio managers lose conviction in a previously identified trend or theme, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Catalyst Risk.</b> Investing in companies in anticipation of a catalyst carries the risk that certain of such catalysts may not happen or the market may react differently than expected to such catalysts, in which case the Portfolio may experience losses. </li><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold. </li><li> <b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. </li><li> <b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 40 to 50). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities. </li><li> <b>Information Technology Sector Risk.</b> Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation. </li><li> <b>Large Company Risk.</b> Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </li><li> <b>Theme Risk.</b> Because the Portfolio&#8217;s investment strategy incorporates the identification of themes, the Portfolio&#8217;s performance may suffer if IICO does not correctly identify such themes or if a theme develops in an unanticipated way. </li><li> <b>Value Stock Risk.</b> Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of IICO, undervalued. The value of a security believed by IICO to be undervalued may never reach what is believed to be its full value, such security&#8217;s value may decrease or such security may be appropriately priced. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 17.59% (the third quarter of 2009) and the lowest quarterly return was -20.48% (the fourth quarter of 2008). Average Annual Total Returns <br/><br/>as of December 31, 2017 April 30, 2019 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000015 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000014 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000017 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000012 column period compact * ~</div> Ivy VIP Growth <b>Objective </b> To seek to provide growth of capital. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees <br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 41% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Growth seeks to achieve its objective by investing primarily in a diversified portfolio of common stocks issued by large-capitalization, growth-oriented companies with above-average levels of profitability and that Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, believes have the ability to sustain growth over the long term. Large-capitalization companies typically are companies with market capitalizations of at least $10 billion at the time of acquisition. Growth-oriented companies are those whose earnings IICO believes are likely to grow faster than the economy. <br/><br/>IICO primarily utilizes a bottom-up (researching individual issuers) strategy in selecting securities for the Portfolio and seeks to invest for the Portfolio in companies that it believes possess, or have the potential to achieve, dominant market positions and/or structural competitive advantages. IICO believes that these characteristics can help to mitigate competition and lead to more resilient and sustainable revenue and earnings growth. <br/><br/>IICO begins its investment process by screening large-capitalization companies based on profitability, and then attempts to focus on companies operating in large, growing, addressable markets (generally, the total potential markets for their goods and services) whose competitive market position IICO believes will allow them to grow faster than the general economy. The key factors IICO typically analyzes consist of: a company&#8217;s brand equity, proprietary technology, economies of scale, barriers to entry, strength of management, and level of competitive intensity; return of capital in the form of higher dividends or share repurchases; strong balance sheets and cash flows; the threat of substitute products; and the interaction and bargaining power between a company, its customers, suppliers and competitors. The Portfolio typically holds a limited number of stocks (generally 40 to 60). <br/><br/>Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>In general, IICO may sell a security when, in IICO&#8217;s opinion, a company experiences deterioration in its growth and/or profitability characteristics, or a fundamental breakdown of its sustainable competitive advantages. IICO also may sell a security if it believes that the security no longer presents sufficient appreciation potential; this may be caused by, or be an effect of, changes in the industry or sector of the issuer, loss by the company of its competitive position, poor execution by management, the threat of technological disruption and/or poor use of resources. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold. </li><li> <b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. </li><li> <b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 40 to 60), and the Portfolio&#8217;s managers also tend to invest a significant portion of the Portfolio&#8217;s total assets in a limited number of stocks. As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities or if the Portfolio&#8217;s managers invested a greater portion of the Portfolio&#8217;s total assets in a larger number of stocks. </li><li> <b>Information Technology Sector Risk.</b> Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation. </li><li> <b>Large Company Risk.</b> Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek capital growth, with current income as a secondary objective. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 14.22% (the first quarter of 2012) and the lowest quarterly return was -20.44% (the fourth quarter of 2008). Average Annual Total Returns <br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000026 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000025 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000024 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000027 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000022 column period compact * ~</div> Ivy VIP Micro Cap Growth <b>Objective </b> To seek to provide growth of capital. <b>Fees and Expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees <br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the particular class of shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 37% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Micro Cap Growth seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of micro-capitalization companies. The Portfolio considers a company to be a micro-capitalization company if its market capitalization, at the time of acquisition, is less than the greater of $2 billion or the market capitalization of the largest company in the Russell Microcap Growth Index. As of June 30, 2017 (the quarter-end closest to the index&#8217;s rebalance), the largest company in the Russell Microcap Growth Index had a market capitalization of $1.11 billion. The Portfolio primarily invests in common stock, which may include common stocks that are offered in initial public offerings (IPOs). <br/><br/>In selecting equity securities for the Portfolio, Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, utilizes a bottom-up (researching individual issuers) stock selection process. IICO seeks to invest for the Portfolio in securities of early stage growth companies operating in industries and/or sectors that are expected to benefit from areas of the economy that demonstrate the ability to grow meaningfully faster than overall gross domestic product for a sustained period of time. The Portfolio typically holds a limited number of stocks (generally 50 to 70). <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. For example, IICO may sell a security if it believes that the issuer&#8217;s growth and/or profitability characteristics are deteriorating or the issuer no longer maintains a competitive advantage, when it believes there are more attractive investment opportunities, when there is a lack of management execution, when it believes a company&#8217;s valuation has become unattractive relative to industry leaders and industry-specific metrics, or a company&#8217;s competitive landscape has changed, to reduce the Portfolio&#8217;s holding in that security or its exposure to a particular sector, or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. </li><li> <b>Health Care Sector Risk.</b> Investment risks associated with investing in securities in the health care sector, in addition to other risks, include heavy dependence on patent protection, with profitability affected by the expiration of patents; expenses and losses from extensive litigation based on product liability and similar claims; competitive forces that may make it difficult to raise prices and, in fact, may result in price discounting; the potentially long and costly process for obtaining new product approval by the Food and Drug Administration; the difficulty health care providers may have obtaining staff to deliver services; susceptibility to product obsolescence; and thin capitalization and limited product lines, markets, financial resources or personnel. </li><li> <b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 50 to 70). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities. </li><li> <b>Information Technology Sector Risk.</b> Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation. </li><li> <b>Initial Public Offering (IPO) Risk.</b> Any positive effect of investments in IPOs may not be sustainable because of a number of factors. Namely, the Portfolio may not be able to buy shares in some IPOs, or may be able to buy only a small number of shares. Also, the performance of IPOs generally is volatile, and is dependent on market psychology and economic conditions. To the extent that IPOs have a significant positive impact on the Portfolio&#8217;s performance, this may not be able to be replicated in the future. The relative performance impact of IPOs also is likely to decline as the Portfolio grows. </li><li> <b>Liquidity Risk.</b> Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </li><li> <b>Small Company Risk.</b> Securities of small to micro-capitalization companies are subject to greater price volatility, lower trading volume and less liquidity due to, among other things, such companies&#8217; small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations and such securities may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns. In some cases, there could be difficulties in selling securities of small to micro-capitalization companies at the desired time. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. Once that class has a full calendar year of performance, it will be included in the table below. <br/><br/>Wall Street Associates, LLC served as the investment subadviser to the Portfolio until July 1, 2015. On July 1, 2015, Waddell &amp; Reed Investment Management Company (WRIMCO) assumed direct investment management responsibilities for the Portfolio. On October 1, 2016, IICO, an affiliate of WRIMCO, became the Portfolio&#8217;s investment adviser. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek long-term capital appreciation. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 29.37% (the second quarter of 2009) and the lowest quarterly return was -30.17% (the fourth quarter of 2008). Average Annual Total Returns <br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000036 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000035 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000034 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000037 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000032 column period compact * ~</div> Ivy VIP Mid Cap Growth <b>Objective </b> To seek to provide growth of capital. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the particular class of shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year, that the Portfolio&#8217;s operating expenses remain the same, and that expenses were capped for a one-year period, as indicated above. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 25% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Mid Cap Growth seeks to achieve its objective by investing primarily in common stocks of mid-capitalization companies that IICO believes are high quality and/or offer above-average growth potential. Under normal circumstances, the Portfolio invests at least 80% of its net assets in the securities of mid-capitalization companies, which, for purposes of this Portfolio, typically are companies with market capitalizations within the range of companies in the Russell Midcap Growth Index at the time of acquisition. As of June 30, 2017 (the quarter-end closest to the index&#8217;s rebalance), this range of market capitalizations was between approximately $2.16 billion and $30.62 billion. <br/><br/>In selecting securities for the Portfolio, IICO primarily emphasizes a bottom-up (researching individual issuers) approach and focuses on companies it believes have the potential for strong growth, increasing profitability, stable and sustainable revenue and earnings streams, attractive valuations and sound capital structures. IICO may look at a number of factors in its consideration of a company, such as: new or innovative products or services; adaptive or creative management; strong financial and operational capabilities to sustain multi-year growth; stable and consistent revenue, earnings, and cash flow; strong balance sheet; market potential; and profit potential. Part of IICO&#8217;s investment process also includes a review of the macroeconomic environment, with a focus on factors such as interest rates, inflation, consumer confidence and corporate spending. <br/><br/>Generally, in determining whether to sell a security, IICO considers many factors, including what it believes to be excessive valuation given company growth prospects, deterioration of fundamentals, weak cash flow to support shareholder returns, and unexpected and poorly explained management changes. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li><b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. </li><li> <b>Information Technology Sector Risk.</b> Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Mid Size Company Risk.</b> Securities of mid-capitalization companies may be more vulnerable to adverse developments than those of larger companies due to such companies&#8217; limited product lines, limited markets and financial resources and dependence upon a relatively small management group. Securities of mid-capitalization companies may be more volatile and less liquid than the securities of larger companies, and may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.</li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. Once that class has a full calendar year of performance, it will be included in the table below. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek to provide growth of your investment. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 20.43% (the second quarter of 2009) and the lowest quarterly return was -22.11% (the fourth quarter of 2008). Average Annual Total Returns<br/><br/>as of December 31, 2017 April 30, 2019 The Total Annual Portfolio Operating Expenses After Fee Waiver and/or Expense Reimbursement ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio&#8217;s contractual class waiver. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000046 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000045 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000044 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000047 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000042 column period compact * ~</div> Ivy VIP Small Cap Core <b>Objective </b> To seek to provide capital appreciation. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 112% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Small Cap Core seeks to achieve its objective by investing primarily in various types of equity securities of small-capitalization companies that Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, believes have the greatest potential for capital appreciation. Under normal circumstances, at least 80% of the Portfolio&#8217;s net assets will be invested, at the time of purchase, in common stocks of small-capitalization companies. For purposes of this Portfolio, small-capitalization companies typically are companies with market capitalizations within the range of companies in the Russell 2000 Index at the time of acquisition. As of June 30, 2017 (the quarter-end closest to the index&#8217;s rebalance), this range of market capitalizations was between approximately $90.89 million and $5.86 billion. <br/><br/>The Portfolio seeks to invest in small-capitalization companies that IICO believes are undervalued relative to their potential for capital appreciation. In selecting securities for the Portfolio, IICO has the flexibility to invest in growth or value companies, or both, and primarily utilizes fundamental, bottom-up (researching individual issuers) research while considering top-down (assessing the market and economic environment) and quantitative analyses. In assessing investment opportunities, IICO seeks stocks that it believes exhibit relative strength and positive identifiable catalysts, while striving to avoid stocks with low liquidity. IICO seeks companies that are showing stable or positively trending fundamentals and that possess one or more of the following attributes: capital discipline (favorable return on invested capital), a sustainable competitive advantage, seasoned management with appropriate incentives and a stable capital structure. In addition, IICO attempts to diversify the Portfolio&#8217;s holdings among sectors, as well as among growth and value companies, in an effort to manage risk and to limit excess volatility. The Portfolio typically holds a limited number of stocks (generally 40 to 60). <br/><br/>IICO typically will sell a stock when, in IICO&#8217;s opinion, it reaches an acceptable price relative to its estimated potential value, its fundamental factors have changed or IICO has changed its estimated value due to business performance that is below IICO&#8217;s expectations. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li><b>Catalyst Risk.</b> Investing in companies in anticipation of a catalyst carries the risk that certain of such catalysts may not happen or the market may react differently than expected to such catalysts, in which case the Portfolio may experience losses. </li><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. </li><li> <b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 40 to 60). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities. </li><li> <b>Liquidity Risk.</b> Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Portfolio Turnover Risk.</b> Frequent buying and selling of investments involve higher costs to the Portfolio and may affect the Portfolio&#8217;s performance over time. Factors that can lead to short-term trading include market volatility, a significant positive or negative development concerning a security, an attempt to maintain a Portfolio&#8217;s market capitalization target, and the need to sell a security to meet redemption activity. </li><li> <b>Small Company Risk.</b> Securities of small-capitalization companies are subject to greater price volatility, lower trading volume and less liquidity due to, among other things, such companies&#8217; small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations and such securities may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns. In some cases, there could be difficulties in selling securities of small-capitalization companies at the desired time. </li><li><b>Value Stock Risk.</b> Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of IICO, undervalued. The value of a security believed by IICO to be undervalued may never reach what is believed to be its full value, such security&#8217;s value may decrease or such security may be appropriately priced.</li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>From January 20, 2006 to March 24, 2008, BlackRock Capital Management, Inc., an affiliate of BlackRock Financial Management, Inc., served as the Portfolio&#8217;s investment subadviser. On March 24, 2008, Waddell &amp; Reed Investment Management Company (WRIMCO) assumed direct investment management responsibilities for the Portfolio. On October 1, 2016, IICO, an affiliate of WRIMCO, became the Portfolio&#8217;s investment adviser. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek long-term accumulation of capital. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide capital appreciation. Effective April 28, 2017, the Portfolio changed its name and strategy to reflect a greater emphasis on core style companies. Performance prior to April 28, 2017, reflects the Portfolio&#8217;s former strategy and may have differed if the Portfolio&#8217;s current strategy had been in place. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 17.01% (the fourth quarter of 2010) and the lowest quarterly return was -21.81% (the third quarter of 2011). Average Annual Total Returns<br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. highest quarterly return 2009-09-30 lowest quarterly return highest quarterly return 2012-03-31 lowest quarterly return highest quarterly return 2009-06-30 lowest quarterly return highest quarterly return 2009-06-30 lowest quarterly return 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000056 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000055 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000054 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000057 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000052 column period compact * ~</div> Ivy VIP Small Cap Growth <b>Objective </b> To seek to provide growth of capital. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) Shareholder Fees<br/><br/>(fees paid directly from your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year, that the Portfolio&#8217;s operating expenses remain the same and that expenses were capped for a one-year period, as indicated above. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 55% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Small Cap Growth seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in common stocks of small-capitalization companies. For purposes of this Portfolio, small-capitalization companies typically are companies with market capitalizations within the range of companies in the Russell 2000 Growth Index at the time of acquisition. As of June 30, 2017 (the quarter-end closest to the index&#8217;s rebalance), this range of market capitalizations was between approximately $90.89 million and $5.86 billion. The Portfolio emphasizes smaller companies positioned in new or emerging industries where IICO believes there is opportunity for higher growth than in established companies or industries. The Portfolio&#8217;s investments in equity securities may include common stocks that are offered in initial public offerings (IPOs). <br/><br/>IICO utilizes a bottom-up (researching individual issuers) stock-picking process that considers quality of management and superior financial characteristics (e.g., return on assets, return on equity, operating margin) in its search for companies, thereby focusing on what it believes are higher-quality companies. IICO seeks companies that it believes exhibit successful and scalable business models by having one or more of the following characteristics: a company that is a leader in its industry and that possesses an identifiable competitive advantage; that features the involvement of the founder; that demonstrates a strong commitment to shareholders; that is serving a large and/or fast-growing market opportunity; that is experiencing a growth in earnings, growth in revenue and sales and/or positive cash flows; that is increasing market share and/or creating increasing barriers to entry; or that emphasizes organic growth. IICO believes that such companies generally have a replicable business model that allows for sustained growth. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. For example, IICO may sell a security if it believes that the stock no longer offers significant growth potential, which may be due to a change in the business or management of the company or a change in the industry or sector of the company. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, if it loses confidence in the management of the company, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li><b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. </li><li> <b>Information Technology Sector Risk.</b> Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation. </li><li> <b>Initial Public Offering (IPO) Risk.</b> Any positive effect of investments in IPOs may not be sustainable because of a number of factors. Namely, the Portfolio may not be able to buy shares in some IPOs, or may be able to buy only a small number of shares. Also, the performance of IPOs generally is volatile, and is dependent on market psychology and economic conditions. To the extent that IPOs have a significant positive impact on the Portfolio&#8217;s performance, this may not be able to be replicated in the future. The relative performance impact of IPOs also is likely to decline as the Portfolio grows. </li><li> <b>Liquidity Risk.</b> Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </li><li> <b>Small Company Risk.</b> Securities of small-capitalization companies are subject to greater price volatility, lower trading volume and less liquidity due to, among other things, such companies&#8217; small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations and such securities may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns. In some cases, there could be difficulties in selling securities of small-capitalization companies at the desired time.</li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 24.14% (the second quarter of 2009) and the lowest quarterly return was -28.33% (the third quarter of 2011). Average Annual Total Returns<br/><br/>as of December 31, 2017 April 30, 2019 The Total Annual Portfolio Operating Expenses After Fee Waiver and/or Expense Reimbursement ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect the Portfolio&#8217;s contractual class waiver. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000066 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000065 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000064 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000067 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000062 column period compact * ~</div> Ivy VIP Value <b>Objective </b> To seek to provide capital appreciation. <b>Fees and Expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 67% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Value seeks to achieve its objective by investing in the common stocks of primarily large-capitalization companies that Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, believes are undervalued, trading at a significant discount relative to the intrinsic value of the company as estimated by IICO and/or are out of favor in the financial markets but have a favorable outlook for capital appreciation. Although the Portfolio primarily invests in securities issued by large-capitalization companies (typically, companies with market capitalizations of at least $10 billion at the time of acquisition), it may invest in securities issued by companies of any size. <br/><br/>To identify securities for the Portfolio, IICO primarily utilizes fundamental, bottom-up (researching individual issuers) research while considering top-down (assessing the market environment) and quantitative analyses. IICO primarily determines the estimated intrinsic value of companies based on cash flow generation, but IICO may consider other valuation factors, such as price to earnings and price to book value. IICO also considers other operational factors of a company, including, among others, asset growth, changes in share count, and changes in working capital. The Portfolio emphasizes companies that IICO believes have clearly identifiable catalysts that will help the companies achieve their estimated intrinsic values. The Portfolio typically holds a limited number of stocks (generally 30 to 45). <br/><br/>Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>IICO typically will sell a stock when, in IICO&#8217;s opinion, it reaches an acceptable price, its fundamental characteristics have changed or it has performed below IICO&#8217;s expectations. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Catalyst Risk.</b> Investing in companies in anticipation of a catalyst carries the risk that certain of such catalysts may not happen or the market may react differently than expected to such catalysts, in which case the Portfolio may experience losses. </li><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Financials Sector Risk.</b> Investment risks associated with investing in securities in the financials sector, in addition to other risks, include extensive governmental regulation and/or nationalization that affects the scope of their activities, the prices they can charge and the amount of capital they must maintain; adverse effects from increases in interest rates; effects on profitability by loan losses, which usually increase in economic downturns; the severe competition to which banks, insurance, and financial services companies may be subject; and increased interindustry consolidation and competition in the financials sector. The impact of more stringent capital requirements, recent or future regulation on any individual financial company or recent or future regulation on the financials economic sector as a whole cannot be predicted. </li><li> <b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold. </li><li> <b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 30 to 45), and the Portfolio&#8217;s manager also tends to invest a significant portion of the Portfolio&#8217;s total assets in a limited number of stocks. As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities or if the Portfolio&#8217;s manager invested a greater portion of the Portfolio&#8217;s total assets in a larger number of stocks. </li><li> <b>Large Company Risk.</b> Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </li><li> <b>Value Stock Risk.</b> Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of IICO, undervalued. The value of a security believed by IICO to be undervalued may never reach what is believed to be its full value, such security&#8217;s value may decrease or such security may be appropriately priced. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek long-term capital appreciation. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide capital appreciation. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 20.05% (the third quarter of 2009) and the lowest quarterly return was -20.08% (the third quarter of 2011). Average Annual Total Returns<br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class&nbsp;II shares of the Portfolio. The table shows the average annual total returns for Class&nbsp;II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000076 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000075 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000074 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000077 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000072 column period compact * ~</div> Ivy VIP Corporate Bond <b>Objective </b> To seek to provide current income consistent with preservation of capital. <b>Fees and Expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/> (fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio bears transaction costs, such as spreads between bid and asked prices, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 66% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Corporate Bond seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in corporate bonds (also referred to as corporate &#8220;debt securities&#8221; or &#8220;fixed-income securities&#8221;). For this purpose, &#8220;corporate bonds&#8221; includes any debt security issued by a domestic or foreign company with an initial maturity greater than one year. The Portfolio invests primarily in investment-grade debt securities (including bonds rated BBB- or higher by S&amp;P Global Ratings, a division of S&amp;P Global Inc. (S&amp;P), or comparably rated by another nationally recognized statistical rating organization (NRSRO) or, if unrated, determined by Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, to be of comparable quality). The Portfolio may invest up to 20% of its net assets in other types of debt securities, including mortgage-backed securities, debt securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities (U.S. government securities) and other asset-backed securities. Certain of the mortgage-backed securities in which the Portfolio may invest are not backed by the full faith and credit of the U.S. government and, like other asset-backed securities in which the Portfolio may invest, may be backed only by the pool of assets pledged as security for the transaction. The Portfolio has no limitations regarding the duration or dollar-weighted average of its holdings, may invest in debt securities with varying maturities and can invest in debt securities issued by both domestic and foreign companies, in a variety of sectors and industries. The Portfolio may invest significantly in debt securities payable from the same sector. <br/><br/>In selecting debt securities for the Portfolio&#8217;s holdings, IICO initially utilizes a top-down (assessing the market environment) viewpoint by looking at broad economic and financial trends in an effort to anticipate their impact on the fixed-income market and then conducts a bottom-up (researching individual issuers) analysis that considers yield and relative safety of a security. IICO also may look at many other factors, including the issuer&#8217;s past, present and estimated future: financial strength; cash flow; management; borrowing requirements; and responsiveness to changes in interest rates and business conditions. Additionally, IICO may consider the maturity of the obligation and the size or nature of the bond issue. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. For example, IICO may sell a holding if, in IICO&#8217;s opinion, the issuer&#8217;s financial strength weakens and/or the yield and relative safety of the security decline. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Credit Risk.</b> An issuer of a fixed-income obligation may not make payments on the obligation when due or may default on its obligation. There also is the risk that an issuer could suffer adverse changes in its financial condition that could lower the credit quality of a security. This could lead to greater volatility in the price of the security, could affect the security&#8217;s liquidity, and could make it more difficult to sell. A downgrade or default affecting any of the Portfolio&#8217;s securities could affect the Portfolio&#8217;s performance. In general, the longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk. </li><li> <b>Extension Risk.</b> A rise in interest rates could cause borrowers to pay back the principal on certain debt securities, such as mortgage-backed or asset-backed securities, more slowly than expected, thus lengthening the average life of such securities. This could cause the value of such securities to be more volatile or to decline more than other fixed-income securities and may magnify the effect of the rate increase on the price of such securities. </li><li> <b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. </li><li> <b>Income Risk.</b> The risk that the Portfolio may experience a decline in its income due to falling interest rates, earnings declines, or income decline within a security. The amount and rate of distributions that the Portfolio&#8217;s shareholders receive are affected by the income that the Portfolio receives from its portfolio holdings. If the income is reduced, distributions by the Portfolio to shareholders may be less. </li><li> <b>Interest Rate Risk.</b> A rise in interest rates may cause a decline in the value of the Portfolio&#8217;s securities, especially securities with longer maturities. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest rates could have on the security&#8217;s price. Thus, the sensitivity of the Portfolio&#8217;s debt securities to interest rate risk will increase with any increase in the duration of those securities. A decline in interest rates may cause the Portfolio to experience a decline in its income. Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. The Portfolio may be subject to heightened interest rate risk as a result of a rise or anticipated rise in interest rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li><li> <b>Liquidity Risk.</b> Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Mortgage-Backed and Asset-Backed Securities Risk.</b> Mortgage-backed and asset-backed securities are subject to prepayment risk and extension risk. When interest rates decline, unscheduled prepayments can be expected to accelerate, shortening the average lives of such securities, and the Portfolio may be required to reinvest the proceeds of the prepayments at the lower interest rates then available. Unscheduled prepayments also would limit the potential for capital appreciation on mortgage-backed and asset-backed securities, thereby reducing the Portfolio&#8217;s income. Conversely, when interest rates rise, the values of mortgage-backed and asset-backed securities generally fall. Rising interest rates typically result in decreased prepayments and longer average lives of such securities. This could cause the value of such securities to be more volatile or decline more than other fixed-income securities, and may magnify the effect of the rate increase on the price of such securities.<br/>Certain mortgage-backed securities are U.S. government securities. See U.S. Government Securities Risk for the risks of these types of securities. For non-U.S. government securities, there is the risk that payments on a security will not be made when due, or the value of such security will decline, because the security is not issued or guaranteed as to principal or interest by the U.S. government or by agencies or authorities controlled or supervised by and acting as instrumentalities of the U.S. government or supported by the right of the issuer to borrow from the U.S. government.</li> <li><b>Non-Agency Securities Risk.</b> The risk that payments on a security will not be made when due, or the value of such security will decline, because the security is not issued or guaranteed as to principal or interest by the U.S. Government or by agencies or authorities controlled or supervised by and acting as instrumentalities of the U.S. Government. These securities may include, but are not limited to, securities issued by non-government entities, asset-backed securities (which represent interests in auto, consumer and/or credit card loans) and commercial mortgage-backed securities (which represent interests in commercial mortgage loans). </li><li> <b>Reinvestment Risk.</b> A decline in interest rates may cause issuers to prepay higher-yielding securities held by the Portfolio, resulting in the Portfolio reinvesting in securities with lower yields, which may cause a decline in its income. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </li><li> <b>U.S. Government Securities Risk.</b> Certain U.S. government securities, such as U.S. Treasury (Treasury) securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. Other U.S. government securities, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB), are not backed by the full faith and credit of the U.S. government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the Treasury. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek a reasonable return with emphasis on preservation of capital. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide current income consistent with preservation of capital. Effective April 30, 2018, the Portfolio changed its name and strategy to reflect a focus on corporate bonds, rather than in bonds generally. Performance prior to April 30, 2018 reflects the Portfolio&#8217;s former strategy and may have differed if the Portfolio&#8217;s current strategy had been in place. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 3.58% (the third quarter of 2009) and the lowest quarterly return was -3.05% (the fourth quarter of 2016). Average Annual Total Returns<br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 (The Portfolio&#8217;s benchmark changed from Bloomberg Barclays U.S. Aggregate Bond Index, effective April 30, 2018. IICO believes that the Bloomberg Barclays U.S. Credit Index is more reflective of the types of securities in which the Portfolio invests than the Bloomberg Barclays U.S. Aggregate Bond Index.) 2016-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000086 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000085 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000084 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000087 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000082 column period compact * ~</div> Ivy VIP Global Bond <b>Objectives </b> To seek to provide a high level of current income. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio bears transaction costs, such as spreads between bid and asked prices, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 49% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Global Bond seeks to achieve its objectives by investing, under normal circumstances, at least 80% of its net assets in a diversified portfolio of bonds of foreign and U.S. issuers. The Portfolio may invest in debt securities, including secured and unsecured loan assignments, loan participations and other loan instruments (loans), issued by foreign or U.S. companies of any size, including those in emerging markets, as well as in debt securities issued by foreign or U.S. governments. Under normal circumstances, the Portfolio invests at least 40% (or, if Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, deems it warranted by market conditions, at least 30%) of its total assets in securities of non-U.S. issuers. The Portfolio may invest up to 100% of its total assets in foreign securities and in securities denominated in currencies other than the U.S. dollar. The Portfolio may invest in securities of any maturity. <br/><br/>The Portfolio may invest in both investment and non-investment grade securities. It may invest up to 100% of its total assets in non-investment grade bonds, commonly called &#8220;high yield&#8221; or &#8220;junk&#8221; bonds, primarily of foreign issuers, that include bonds rated BB+ or lower by S&amp;P Global Ratings, a division of S&amp;P Global Inc. (S&amp;P), or comparably rated by another nationally recognized statistical rating organization (NRSRO) or, if unrated, determined by IICO to be of comparable quality. The Portfolio will invest in non-investment grade securities only if IICO deems the risks to be consistent with the Portfolio&#8217;s objectives. The Portfolio also may invest in equity securities of foreign and U.S. issuers to achieve income and/or its secondary objective of capital appreciation. <br/><br/>Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>IICO may look at a number of factors in selecting securities for the Portfolio&#8217;s holdings including: identifying fundamental global themes; country analysis (economic, legislative/judicial and demographic trends); credit analysis of the issuer (financial strength, cash flow, balance sheet, management, strategy and accounting); the maturity, quality, and denomination (U.S. dollar, euro, yen) of the issue; domicile and market share of the issuer; and analysis of the issuer&#8217;s profit history through various economic cycles. <br/><br/>Generally, in determining whether to sell a security, IICO continues to analyze the factors considered for buying the security. IICO also considers its assumptions regarding a company, an industry, the markets, an individual economy and/or the global economy. IICO may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objectives. These include: <ul type="square"><li> <b>Capital Repatriation Risk.</b> Capital repatriation involves the transfer of corporate money or property from a foreign country back to its home country. The repatriation of capital with regard to investments made in certain securities or countries may be restricted during certain times from the date of such investments or even indefinitely. If IICO is unable to repatriate capital from its investments, in whole or in part, this may have an adverse effect on the cash flows and/or performance of the Portfolio. </li><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Credit Risk.</b> An issuer of a fixed-income obligation may not make payments on the obligation when due or may default on its obligation. There also is the risk that an issuer could suffer adverse changes in its financial condition that could lower the credit quality of a security. This could lead to greater volatility in the price of the security, could affect the security&#8217;s liquidity, and could make it more difficult to sell. A downgrade or default affecting any of the Portfolio&#8217;s securities could affect the Portfolio&#8217;s performance. In general, the longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk. </li><li> <b>Emerging Market Risk.</b> Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. </li><li> <b>Extension Risk.</b> A rise in interest rates could cause borrowers to pay back the principal on certain debt securities, such as mortgage-backed or asset-backed securities, more slowly than expected, thus lengthening the average life of such securities. This could cause the value of such securities to be more volatile or to decline more than other fixed-income securities, and may magnify the effect of the rate increase on the price of such securities. </li><li> <b>Foreign Currency Risk.</b> Foreign securities may be denominated in foreign currencies. The value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. </li><li> <b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold. </li><li> <b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. The risks may be exacerbated in connection with investments in emerging markets. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses.<br/>Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency. </li><li> <b>Income Risk.</b> The risk that the Portfolio may experience a decline in its income due to falling interest rates, earnings declines, or income decline within a security. The amount and rate of distributions that the Portfolio&#8217;s shareholders receive are affected by the income that the Portfolio receives from its portfolio holdings. If the income is reduced, distributions by the Portfolio to shareholders may be less. </li><li> <b>Interest Rate Risk.</b> A rise in interest rates may cause a decline in the value of the Portfolio&#8217;s securities, especially securities with longer maturities. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest rates could have on the security&#8217;s price. Thus, the sensitivity of the Portfolio&#8217;s debt securities to interest rate risk will increase with any increase in the duration of those securities. A decline in interest rates may cause the Portfolio to experience a decline in its income. Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. The Portfolio may be subject to heightened interest rate risk as a result of a rise or anticipated rise in interest rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li><li> <b>Loan Risk.</b> In addition to the risks typically associated with fixed-income securities, loans carry other risks, including the risk of insolvency of the lending bank or other intermediary. The risks associated with loans are similar to the risks of low-rated debt securities or &#8220;junk&#8221; bonds since loans typically are below investment grade. Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale, may be difficult to value, sometimes trade infrequently on the secondary market and generally are subject to extended settlement periods. Any of these factors may impair the Portfolio&#8217;s ability to sell or realize promptly the full value of its loans in the event of a need to liquidate such loans. Accordingly, loans that have been sold may not be immediately available to meet redemptions. Extended trade settlement periods may result in cash not being immediately available to the Portfolio. As a result, the Portfolio may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. Interests in secured loans have the benefit of collateral and, typically, of restrictive covenants limiting the ability of the borrower to further encumber its assets. There is a risk that the value of the collateral securing a loan in which the Portfolio has an interest may decline and that the collateral may not be sufficient to cover the amount owed on the loan. In the event the borrower defaults, the Portfolio&#8217;s access to the collateral may be limited or delayed by bankruptcy and other insolvency laws. These risks could cause the Portfolio to lose income or principal on a particular investment, which could affect the Portfolio&#8217;s returns. In addition, loans also are subject to the risk that a court could subordinate the loan to presently existing or future indebtedness or take other action detrimental to the holders of the loan. Further, in the event of a default, second or lower lien secured loans will generally be paid only if the value of the collateral exceeds the amount of the borrower&#8217;s obligations to the senior secured lenders, and the remaining collateral may not be sufficient to cover the full amount owed on the loan in which the Portfolio has an interest. Loans made to finance highly leveraged companies or to finance corporate acquisitions or other transactions may be especially vulnerable to adverse changes in economic or market conditions. <br/>With loan assignments, as an assignee, the Portfolio normally will succeed to all rights and obligations of its assignor with respect to the portion of the loan that is being assigned. However, the rights and obligations acquired by the purchaser of a loan assignment may differ from, and be more limited than, those held by the original lenders or the assignor. With loan participations, the Portfolio may not be able to control the exercise of any remedies that the lender would have under the loan and likely would not have any rights against the borrower directly, so that delays and expense may be greater than those that would be involved if the Portfolio could enforce its rights directly against the borrower. </li><li> <b>Low-Rated Securities Risk.</b> In general, low-rated debt securities (commonly referred to as &#8220;high yield&#8221; or &#8220;junk&#8221; bonds) offer higher yields due to the increased risk that the issuer will be unable to meet its obligations on interest or principal payments at the time called for by the debt instrument. For this reason, these securities are considered speculative and could significantly weaken the Portfolio&#8217;s returns. In adverse economic or other circumstances, issuers of these low-rated securities and obligations are more likely to have difficulty making principal and interest payments than issuers of higher-rated securities and obligations. In addition, these low-rated securities and obligations may fluctuate more widely in price and yield than higher-rated securities and obligations and may fall in price during times when the economy is weak or is expected to become weak. Issuers of securities that are in default or have defaulted may fail to resume principal or interest payments, in which case the Portfolio may lose its entire investment. The creditworthiness of issuers of low-rated securities may be more complex to analyze than that of issuers of investment-grade debt securities. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Reinvestment Risk.</b> A decline in interest rates may cause issuers to prepay higher-yielding securities held by the Portfolio, resulting in the Portfolio reinvesting in securities with lower yields, which may cause a decline in its income. </li><li> <b>Small Company Risk.</b> Securities of small-capitalization companies are subject to greater price volatility, lower trading volume and less liquidity due to, among other things, such companies&#8217; small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations and such securities may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns. In some cases, there could be difficulties in selling securities of small-capitalization companies at the desired time. </li><li> <b>U.S. Government Securities Risk.</b> Certain U.S. government securities, such as U.S. Treasury (Treasury) securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. Other U.S. government securities, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB), are not backed by the full faith and credit of the U.S. government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the Treasury. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to those of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek, as a primary objective, a high level of current income and, as a secondary objective, capital growth when consistent with its primary objective. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide a high level of current income and capital appreciation is a secondary objective. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 3.51% (the first quarter of 2012) and the lowest quarterly return was -4.16% (the third quarter of 2015). Average Annual Total Returns<br/><br/>as of December 31, 2017 Capital appreciation is a secondary objective. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to those of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 (The Portfolio&#8217;s benchmark changed from Bloomberg Barclays Multiverse Index, effective April 30, 2018. IICO believes that the Bloomberg Barclays Global Credit 1-10 Year Hedged Index is more reflective of the types of securities in which the Portfolio invests than the Bloomberg Barclays Multiverse Index.) highest quarterly return 2010-12-31 lowest quarterly return highest quarterly return 2009-06-30 lowest quarterly return highest quarterly return 2009-09-30 lowest quarterly return highest quarterly return 2009-09-30 lowest quarterly return 2015-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000096 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000095 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000094 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000097 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000092 column period compact * ~</div> Ivy VIP High Income <b>Objective </b> To seek to provide total return through a combination of high current income and capital appreciation. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the particular class of shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio bears transaction costs, such as spreads between bid and asked prices, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 52% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP High Income seeks to achieve its objective by investing primarily in a diversified portfolio of high-yield, high-risk, fixed-income securities, including secured and unsecured loan assignments, loan participations and other loan instruments (loans), of U.S. and foreign issuers, the risks of which are, in the judgment of Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, consistent with the Portfolio&#8217;s objective. The Portfolio invests primarily in lower-quality debt securities, which include debt securities rated BBB+ or lower by S&amp;P Global Ratings, a division of S&amp;P Global Inc. (S&amp;P), or comparably rated by another nationally recognized statistical rating organization (NRSRO) or, if unrated, determined by IICO to be of comparable quality. The Portfolio may invest up to 100% of its total assets in non-investment grade debt securities, commonly called &#8220;high yield&#8221; or &#8220;junk&#8221; bonds, which include debt securities rated BB+ or lower by S&amp;P or comparably rated by another NRSRO or, if unrated, determined by IICO to be of comparable quality. The Portfolio may invest in fixed-income securities of any maturity. <br/><br/>The Portfolio may invest up to 100% of its total assets in foreign securities that are denominated in U.S. dollars or foreign currencies. Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>The Portfolio may invest in private placements and other restricted securities. <br/><br/>Although IICO considers credit ratings in selecting investments for the Portfolio, IICO bases its investment decisions for a particular instrument primarily on its own credit analysis and not on a NRSRO&#8217;s credit rating. IICO may look at a number of factors in selecting securities for the Portfolio, beginning with a primarily bottom-up (researching individual issuers) analysis of a company&#8217;s fundamentals, including: financial strength, growth of operating cash flows, strength of management, borrowing requirements, improving credit metrics, potential to improve credit standing, responsiveness to changes in interest rates and business conditions, strength of business model, and capital structure and future capital needs, and progressing to consideration of the current economic environment, the direction and level of interest rates and inflation, and industry fundamentals and trends in the general economy. <br/><br/>IICO attempts to optimize the Portfolio&#8217;s risk/reward by investing in the debt portion of the capital structure that IICO believes to be most attractive, which may include secured and/or unsecured loans, floating rate notes and/or secured and/or unsecured high-yield bonds. For example, if IICO believes that market conditions are favorable for a particular type of fixed-income instrument, such as high yield bonds, most or all of the fixed-income instruments in which the Portfolio invests may be high yield bonds. Similarly, if IICO believes that market conditions are favorable for loans, most or all of the fixed-income instruments in which the Portfolio invests may be loans, including second-lien loans which typically are lower in the capital structure and less liquid than first-lien loans. <br/><br/>Generally, in determining whether to sell a security, IICO considers the dynamics of an industry and/or company change or anticipated change, a change in strategy by a company, a deterioration of the company&#8217;s financial model, credit quality or credit standing, and/or a change in management&#8217;s consideration of its creditors. IICO also may sell a security if, in IICO&#8217;s opinion, the price of the security has risen to fully reflect the company&#8217;s improved creditworthiness and other investments with greater potential exist. IICO also may sell a security to take advantage of what it believes are more attractive investment opportunities, to reduce the Portfolio&#8217;s holding in that security or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li><b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li><b>Credit Risk.</b> An issuer of a fixed-income obligation may not make payments on the obligation when due or may default on its obligation. There also is the risk that an issuer could suffer adverse changes in its financial condition that could lower the credit quality of a security. This could lead to greater volatility in the price of the security, could affect the security&#8217;s liquidity, and could make it more difficult to sell. A downgrade or default affecting any of the Portfolio&#8217;s securities could affect the Portfolio&#8217;s performance. In general, the longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk. </li><li><b>Extension Risk.</b> A rise in interest rates could cause borrowers to pay back the principal on certain debt securities, such as mortgage-backed or asset-backed securities, more slowly than expected, thus lengthening the average life of such securities. This could cause the value of such securities to be more volatile or to decline more than other fixed-income securities, and may magnify the effect of the rate increase on the price of such securities. </li><li><b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold. </li><li><b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. </li><li><b>Income Risk.</b> The risk that the Portfolio may experience a decline in its income due to falling interest rates, earnings declines, or income decline within a security. The amount and rate of distributions that the Portfolio&#8217;s shareholders receive are affected by the income that the Portfolio receives from its portfolio holdings. If the income is reduced, distributions by the Portfolio to shareholders may be less. </li><li><b>Interest Rate Risk.</b> A rise in interest rates may cause a decline in the value of the Portfolio&#8217;s securities, especially securities with longer maturities. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest rates could have on the security&#8217;s price. Thus, the sensitivity of the Portfolio&#8217;s debt securities to interest rate risk will increase with any increase in the duration of those securities. A decline in interest rates may cause the Portfolio to experience a decline in its income. Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. The Portfolio may be subject to heightened interest rate risk as a result of a rise or anticipated rise in interest rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li><li><b>Liquidity Risk.</b> Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly. </li><li><b>Loan Risk.</b> In addition to the risks typically associated with fixed-income securities, loans carry other risks, including the risk of insolvency of the lending bank or other intermediary. The risks associated with loans are similar to the risks of low-rated debt securities or &#8220;junk&#8221; bonds since loans typically are below investment grade. Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale, may be difficult to value, sometimes trade infrequently on the secondary market and generally are subject to extended settlement periods. Any of these factors may impair the Portfolio&#8217;s ability to sell or realize promptly the full value of its loans in the event of a need to liquidate such loans. Accordingly, loans that have been sold may not be immediately available to meet redemptions. Extended trade settlement periods may result in cash not being immediately available to the Portfolio. As a result, the Portfolio may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. Interests in secured loans have the benefit of collateral and, typically, of restrictive covenants limiting the ability of the borrower to further encumber its assets. There is a risk that the value of the collateral securing a loan in which the Portfolio has an interest may decline and that the collateral may not be sufficient to cover the amount owed on the loan. In the event the borrower defaults, the Portfolio&#8217;s access to the collateral may be limited or delayed by bankruptcy and other insolvency laws. These risks could cause the Portfolio to lose income or principal on a particular investment, which could affect the Portfolio&#8217;s returns. In addition, loans also are subject to the risk that a court could subordinate the loan to presently existing or future indebtedness or take other action detrimental to the holders of the loan. Further, in the event of a default, second or lower lien secured loans will generally be paid only if the value of the collateral exceeds the amount of the borrower&#8217;s obligations to the senior secured lenders, and the remaining collateral may not be sufficient to cover the full amount owed on the loan in which the Portfolio has an interest. Loans made to finance highly leveraged companies or to finance corporate acquisitions or other transactions may be especially vulnerable to adverse changes in economic or market conditions. <br/>With loan assignments, as an assignee, the Portfolio normally will succeed to all rights and obligations of its assignor with respect to the portion of the loan that is being assigned. However, the rights and obligations acquired by the purchaser of a loan assignment may differ from, and be more limited than, those held by the original lenders or the assignor. With loan participations, the Portfolio may not be able to control the exercise of any remedies that the lender would have under the loan and likely would not have any rights against the borrower directly, so that delays and expense may be greater than those that would be involved if the Portfolio could enforce its rights directly against the borrower. </li><li><b>Low-Rated Securities Risk.</b> In general, low-rated debt securities (commonly referred to as &#8220;high yield&#8221; or &#8220;junk&#8221; bonds) offer higher yields due to the increased risk that the issuer will be unable to meet its obligations on interest or principal payments at the time called for by the debt instrument. For this reason, these securities are considered speculative and could significantly weaken the Portfolio&#8217;s returns. In adverse economic or other circumstances, issuers of these low-rated securities and obligations are more likely to have difficulty making principal and interest payments than issuers of higher-rated securities and obligations. In addition, these low-rated securities and obligations may fluctuate more widely in price and yield than higher-rated securities and obligations and may fall in price during times when the economy is weak or is expected to become weak. Issuers of securities that are in default or have defaulted may fail to resume principal or interest payments, in which case the Portfolio may lose its entire investment. The creditworthiness of issuers of low-rated securities may be more complex to analyze than that of issuers of investment-grade debt securities. <br/>The markets in which low-rated debt securities are traded are more limited and less liquid than the market for higher rated securities. Because the Portfolio may invest a substantial amount of its assets in low-rated debt securities, it may be difficult for the Portfolio to sell such securities in a timely manner and at their stated value, particularly if it experiences large, unforeseen redemptions. The Portfolio could lose money if it is forced to sell securities at inopportune times to fulfill shareholder redemption requests. In addition, selling securities to meet such redemptions could increase the Portfolio&#8217;s transaction costs or have tax consequences. The risk of loss may increase depending on the size and frequency of redemption requests and whether the redemption requests occur in times of overall market turmoil or declining prices. </li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li><b>Private Placements and Other Restricted Securities Risk.</b> Restricted securities, which include private placements, are securities that are subject to legal or contractual restrictions on resale, and there can be no assurance of a ready market for resale. Privately placed securities and other restricted securities will have the effect of increasing the level of Portfolio illiquidity to the extent the Portfolio finds it difficult to sell these securities when IICO believes it is desirable to do so, especially under adverse market or economic conditions or in the event of adverse changes in the financial condition of the issuer, and the prices realized could be less than those originally paid or less than the fair market value. At times, the illiquidity of the market, as well as the lack of publicly available information regarding these securities also may make it difficult to determine the fair value of such securities for purposes of computing the NAV of the Portfolio. </li><li><b>Reinvestment Risk.</b> A decline in interest rates may cause issuers to prepay higher-yielding securities held by the Portfolio, resulting in the Portfolio reinvesting in securities with lower yields, which may cause a decline in its income. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. Once that class has a full calendar year of performance, it will be included in the table below. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek, as its primary objective, a high level of current income and, as a secondary objective, to seek capital growth when consistent with its primary objective. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide total return through a combination of high current income and capital appreciation. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 16.61% (the second quarter of 2009) and the lowest quarterly return was -16.50% (the fourth quarter of 2008). Average Annual Total Returns<br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000106 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000105 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000104 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000107 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000102 column period compact * ~</div> Ivy VIP Limited-Term Bond <b>Objective </b> To seek to provide current income consistent with preservation of capital. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio bears transaction costs, such as spreads between bid and asked prices, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 55% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Limited-Term Bond seeks to achieve its objective by investing primarily in investment grade, U.S. dollar-denominated, debt securities of primarily U.S. issuers. The Portfolio may invest in U.S. government securities, corporate debt securities, mortgage-backed securities including collateralized mortgage obligations (CMOs) and other asset-backed securities. The Portfolio seeks to identify relative value opportunities between these sectors of the fixed-income market. Under normal circumstances, the Portfolio invests at least 80% of its net assets in bonds with limited-term maturities; therefore, the Portfolio seeks to maintain a dollar-weighted average maturity of not less than two years and not more than five years. <br/><br/>Investment grade debt securities include bonds rated BBB- or higher by S&amp;P Global Ratings, a division of S&amp;P Global Inc. (S&amp;P), or comparably rated by another nationally recognized statistical rating organization (NRSRO) or, if unrated, determined by Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, to be of comparable quality.<br/><br/>IICO may look at a number of factors in selecting securities for the Portfolio&#8217;s holdings, beginning with a top-down (assessing the market environment) review of the broad economic and financial trends in the U.S. and world markets. This process aids in the determination of economic fundamentals, which leads to sector allocation. <br/><br/>Within a sector, IICO typically considers the security&#8217;s current coupon, the maturity of the security, the relative value of the security based on historical yield information, the creditworthiness of the particular issuer (if not backed by the full faith and credit of the Treasury), and prepayment risks for mortgage-backed securities and other debt securities with call provisions. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities, including review of the security&#8217;s valuation and the issuer&#8217;s creditworthiness. IICO also may sell a security to take advantage of what it believes are more attractive investment opportunities, to reduce the Portfolio&#8217;s holding in that security or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.</li><li><b>Credit Risk.</b> An issuer of a fixed-income obligation may not make payments on the obligation when due or may default on its obligation. There also is the risk that an issuer could suffer adverse changes in its financial condition that could lower the credit quality of a security. This could lead to greater volatility in the price of the security, could affect the security&#8217;s liquidity, and could make it more difficult to sell. A downgrade or default affecting any of the Portfolio&#8217;s securities could affect the Portfolio&#8217;s performance. In general, the longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.</li><li><b>Extension Risk.</b> A rise in interest rates could cause borrowers to pay back the principal on certain debt securities, such as mortgage-backed or asset-backed securities, more slowly than expected, thus lengthening the average life of such securities. This could cause the value of such securities to be more volatile or to decline more than other fixed-income securities and may magnify the effect of the rate increase on the price of such securities.</li><li><b>Income Risk.</b> The risk that the Portfolio may experience a decline in its income due to falling interest rates, earnings declines, or income decline within a security. The amount and rate of distributions that the Portfolio&#8217;s shareholders receive are affected by the income that the Portfolio receives from its portfolio holdings. If the income is reduced, distributions by the Portfolio to shareholders may be less.</li><li><b>Interest Rate Risk.</b> A rise in interest rates may cause a decline in the value of the Portfolio&#8217;s securities, especially securities with longer maturities. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest rates could have on the security&#8217;s price. Thus, the sensitivity of the Portfolio&#8217;s debt securities to interest rate risk will increase with any increase in the duration of those securities. A decline in interest rates may cause the Portfolio to experience a decline in its income. Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. The Portfolio may be subject to heightened interest rate risk as a result of a rise or anticipated rise in interest rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally.</li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.</li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.</li><li><b>Mortgage-Backed and Asset-Backed Securities Risk.</b> Mortgage-backed and asset-backed securities are subject to prepayment risk and extension risk. When interest rates decline, unscheduled prepayments can be expected to accelerate, shortening the average lives of such securities, and the Portfolio may be required to reinvest the proceeds of the prepayments at the lower interest rates then available. Unscheduled prepayments also would limit the potential for capital appreciation on mortgage-backed and asset-backed securities, thereby reducing the Portfolio&#8217;s income. Conversely, when interest rates rise, the values of mortgage-backed and asset-backed securities generally fall. Rising interest rates typically result in decreased prepayments and longer average lives of such securities. This could cause the value of such securities to be more volatile or decline more than other fixed-income securities, and may magnify the effect of the rate increase on the price of such securities.<br/>Certain mortgage-backed securities are U.S. government securities. See U.S. Government Securities Risk for the risks of these types of securities. For non-U.S. government securities, there is the risk that payments on a security will not be made when due, or the value of such security will decline, because the security is not issued or guaranteed as to principal or interest by the U.S. government or by agencies or authorities controlled or supervised by and acting as instrumentalities of the U.S. government or supported by the right of the issuer to borrow from the U.S. government.</li><li><b>Reinvestment Risk.</b> A decline in interest rates may cause issuers to prepay higher-yielding securities held by the Portfolio, resulting in the Portfolio reinvesting in securities with lower yields, which may cause a decline in its income.</li><li><b>U.S. Government Securities Risk.</b> Certain U.S. government securities, such as U.S. Treasury (Treasury) securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. Other U.S. government securities, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB), are not backed by the full faith and credit of the U.S. government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the Treasury.</li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to provide a high level of current income consistent with preservation of capital. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide current income consistent with preservation of capital. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 1.57% (the first quarter of 2016) and the lowest quarterly return was -1.67% (the second quarter of 2013). Average Annual Total Returns <br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 2010-08-23 2010-08-23 2010-08-23 2010-08-23 highest quarterly return 2013-06-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000116 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000115 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000114 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000117 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000112 column period compact * ~</div> Ivy VIP Global Equity Income <b>Objective </b> To seek to provide total return through a combination of current income and capital appreciation. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 35% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Global Equity Income seeks to achieve its objective by investing primarily in equity securities that are issued by companies of any size located largely in developed markets around the world, that Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, believes will be able to generate a reasonable level of current income for investors given current market conditions, and that demonstrate favorable prospects for total return. The Portfolio focuses on companies that IICO believes have the ability to maintain and/or grow their dividends while providing capital appreciation over the long-term. The Portfolio typically holds a limited number of stocks (generally 50 to 70). <br/><br/>Under normal circumstances, the Portfolio invests at least 80% of its net assets in equity securities. For this purpose, such equity securities consist primarily of dividend-paying common stocks across the globe. Although the Portfolio invests primarily in large-capitalization companies (typically companies with market capitalizations of at least $10 billion at the time of acquisition), it may invest in companies of any size.<br/><br/>Under normal circumstances, the Portfolio invests at least 40% (or, if IICO deems it warranted by market conditions, at least 30%) of its total assets in securities of non-U.S. issuers. <br/><br/>In selecting securities for the Portfolio, IICO uses a bottom-up (researching individual issuers) stock selection process. IICO seeks to identify higher-quality companies that it believes are reasonably-valued, have a strong likelihood of maintaining and/or growing their dividend, and have a relatively stable to improving fundamental outlook, relative to market expectations. IICO considers an analysis of sectors/industries and geographical areas (when relevant) when determining the attractiveness of names and weightings of sectors, and to a lesser degree countries. IICO also considers several other factors, including a company&#8217;s history of fundamentals, ability to sustain its business model, growth potential, management proficiency and competitive environment. <br/><br/>Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various additional foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>In an effort to manage foreign currency exposure, the Portfolio may use forward foreign currency contracts to manage the Fund&#8217;s exposure to various foreign currencies and the U.S. dollar. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities of that type. For example, IICO may sell a security if it believes the security no longer offers attractive current income prospects or significant growth potential, if it believes the management of the company has weakened, and/or there exists political or economic instability in the issuer&#8217;s country. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.</li><li><b>Dividend-Paying Stock Risk.</b> Dividend-paying stocks may fall out of favor with investors and underperform non-dividend paying stocks and the market as a whole over any period of time. In addition, there is no guarantee that the companies in which the Portfolio invests will declare dividends in the future or that dividends, if declared, will remain at current levels or increase over time. The amount of any dividend a company may pay may fluctuate significantly. In addition, the value of dividend-paying common stocks can decline when interest rates rise as other investments become more attractive to investors. This risk may be greater due to the current period of historically low interest rates. </li><li><b>Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk.</b> The Portfolio may use foreign currency exchange transactions and forward foreign currency contracts to hedge certain market risks (such as interest rates, currency exchange rates and broad or specific market movement). These investment techniques involve a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent IICO&#8217;s judgment as to certain market movements is incorrect, the risk of losses that are greater than if the investment technique had not been used.</li><li><b>Foreign Currency Risk.</b> Foreign securities may be denominated in foreign currencies. The value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. Investing in foreign currencies for purposes of gaining from projected changes in exchange rates further increases the Portfolio&#8217;s exposure to foreign investment losses. Currency markets generally are not as regulated as securities markets.</li><li><b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold.</li><li><b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses.</li><li><b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 50 to 70). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities.</li><li><b>Large Company Risk.</b> Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies.</li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.</li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.</li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Effective July 31, 2008, the Portfolio changed its investment objective from seeking to provide income and long-term capital growth to seeking to provide total return. <br/><br/>Effective April 30, 2018, the name of the Portfolio changed from Ivy VIP Dividend Opportunities to Ivy VIP Global Equity Income, and the Portfolio changed its investment objective from seeking to provide total return to seeking to provide total return through a combination of current income and capital appreciation. The Portfolio also changed its investment strategy to invest primarily in equity securities that are issued by companies of any size located largely in developed markets around the world. The Portfolio&#8217;s performance prior to April 30, 2018 reflects the Portfolio&#8217;s former strategy; its performance may have differed if the Portfolio&#8217;s current strategy had been in place. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 14.04% (the fourth quarter of 2011) and the lowest quarterly return was -21.43% (the fourth quarter of 2008). Average Annual Total Returns <br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 (The Portfolio&#8217;s benchmark changed from the Russell 1000 Index, effective April 30, 2018. IICO believes that the FTSE All-World High Dividend Yield Index is more reflective of the types of securities in which the Portfolio invests than the Russell 1000 Index.) 2012-03-31 lowest quarterly return highest quarterly return 2010-08-23 2010-08-23 2009-06-30 lowest quarterly return 2010-08-23 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000126 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000125 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000124 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000127 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000122 column period compact * ~</div> Ivy VIP Global Growth <b>Objective</b> To seek to provide growth of capital. <b>Fees and Expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example</b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies.<br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year, that the Portfolio&#8217;s operating expenses remain the same and that expenses were capped for a one-year period, as indicated above. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover</b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 54% of the average value of its portfolio. <b>Principal Investment Strategies</b> Ivy VIP Global Growth seeks to achieve its objective by investing primarily in common stocks of U.S. and foreign companies (including depositary receipts of foreign issuers) that IICO believes are competitively well-positioned, gaining market share, have the potential for long-term growth and/or operate in regions or countries that IICO believes possess attractive growth characteristics. The Portfolio primarily invests in issuers of developed countries, including the U.S., although the Portfolio has the ability to invest in issuers domiciled in or doing business in any country or region around the globe, including emerging markets. While the Portfolio primarily invests in securities issued by large-capitalization companies (typically, companies with market capitalizations of at least $10 billion at the time of acquisition), it may invest in securities issued by companies of any size, in a variety of sectors and industries. Under normal circumstances, the Portfolio invests at least 40% (or, if the portfolio manager deems it warranted by market conditions, at least 30%) of its total assets in foreign securities. The Portfolio may invest up to 100% of its total assets in foreign securities, including securities denominated in currencies other than the U.S. dollar. The Portfolio typically holds a limited number of stocks (generally 45 to 70).<br/><br/>IICO utilizes a research-based investment process that focuses on bottom-up (researching individual issuers) stock selection. IICO seeks strong companies that possess a unique, sustainable competitive advantage that IICO believes will allow them to withstand competitive pressures, sustain margins and cash flow, and grow faster than the general economy. IICO may look at a number of factors in selecting securities for the Portfolio, including: a company&#8217;s competitive position and its sustainability; a company&#8217;s growth and earnings potential and valuation; a company&#8217;s financials, including cash flow and balance sheet; management of the company; strength of the industry; size of the company&#8217;s total addressable market; margin trends; switching costs; control of distribution channels; brand equity; scale; patent protection; and applicable economic, market and political conditions of the country in which the company is located and/or in which it is doing business. As an overlay to its bottom-up analysis, IICO considers global economic factors such as the political environment, regulatory policy, geopolitical risk and the currency environment.<br/><br/>Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets.<br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. For example, IICO may sell a security issued by a company if it believes the company has experienced a fundamental breakdown of its sustainable competitive advantage or no longer offers significant growth potential, if it believes the management of the company has weakened or its margin and/or its valuation appears unsustainable, if it believes there are macro-economic factors that override a company&#8217;s fundamentals, and/or there exists political or economic instability in the issuer&#8217;s country. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks</b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program.<br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.</li><li><b>Depositary Receipts Risk.</b> Investments in depositary receipts (including American Depositary Receipts, European Depositary Receipts and Global Depositary Receipts) generally are subject to the same risks of investing in the foreign securities that they evidence or into which they may be converted.</li><li><b>Emerging Market Risk.</b> Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets.</li><li><b>Foreign Currency Risk.</b> Foreign securities may be denominated in foreign currencies. The value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations.</li><li><b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold.</li><li><b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. The risks may be exacerbated in connection with investments in emerging markets. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses.</li><li><b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general.</li><li><b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 45 to 70). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities.</li><li><b>Information Technology Sector Risk.</b> Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation.</li><li><b>Large Company Risk.</b> Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies.</li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.</li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.</li><li><b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.</li></ul> <b>Performance</b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.<br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower.<br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to provide, as its primary objective, long-term appreciation of capital and, as a secondary objective, to seek current income. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital.<br/><br/>In November 2014, the Portfolio increased its emphasis on investments in the stocks of U.S. companies. Effective January 1, 2015, the Portfolio changed its name and investment strategy to reflect a global focus. Performance prior to January 2015 reflects the Portfolio&#8217;s former international strategy, which did not include significant investments in U.S. companies, and may have differed if the Portfolio&#8217;s current strategy that includes investing globally, including in stocks of U.S. companies, had been in place.<br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. In the period shown in the chart, the highest quarterly return was 19.56% (the second quarter of 2009) and the lowest quarterly return was -21.32% (the third quarter of 2008). Chart of Year-by-Year Returns<br/>as of December 31 each year Average Annual Total Returns<br/><br/>as of December 31, 2017 April 30, 2019 The Total Annual Portfolio Operating Expenses After Fee Waiver and/or Expense Reimbursement ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect the Portfolio&#8217;s contractual class waiver. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 2008-03-25 highest quarterly return 2016-03-31 lowest quarterly return highest quarterly return 2011-12-31 lowest quarterly return 2008-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000136 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000135 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000134 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000137 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000132 column period compact * ~</div> Ivy VIP International Core Equity <b>Objective</b> To seek to provide capital growth and appreciation. <b>Fees and Expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example</b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies.<br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover</b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 59% of the average value of its portfolio. <b>Principal Investment Strategies</b> Ivy VIP International Core Equity seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities. Such companies primarily will be located in, or principally traded in, developed European and Asian/Pacific Basin markets. In seeking to enhance potential return, the Portfolio also may invest in issuers located or doing business in emerging market countries, which generally will include the more developed of the emerging market countries. The Portfolio also may invest in depositary receipts of foreign issuers.<br/><br/>Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, strives to identify dislocations and valuation discrepancies in the international financial markets in an effort to find what it believes are mispriced countries, sectors, currencies and, ultimately, stocks with attractive valuations relative to their potential and to their peer group. IICO uses a disciplined approach while looking for investment opportunities around the world, preferring what it believes are cash-generating and reasonably valued companies that are exposed to global investment themes which IICO believes will yield above-average returns. IICO combines a top-down (assessing the market environment), macro approach with a bottom-up (researching individual issuers) stock selection process, and uses a combination of country analysis, sector and industry dynamics, and individual stock selection.<br/><br/>As noted, IICO begins its investment process by establishing a top-down global macro view which is built by constantly assessing developments in global gross domestic product, business and product cycles, relative valuations and politics around the world. It then overlays various investment themes on top of the macro view in an effort to identify companies, sectors and regions that IICO believes will benefit under its macro view. IICO next follows a bottom-up approach to its stock selection and evaluates individual companies based on various factors, including: free cash flow, sales growth, financial leverage, and return on invested capital along with various valuation metrics. IICO uses various data and screening services as part of its stock-selection process, primarily to assess return on invested capital and relative valuation.<br/><br/>Although the Portfolio primarily invests in securities issued by large-capitalization companies (typically, companies with capitalizations of at least $10 billion at the time of acquisition), it may invest in securities issued by companies of any size. The Portfolio may invest up to 100% of its total assets in foreign securities. In addition, the Portfolio may use forward contracts in seeking to manage its exposure (increase or decrease) to various foreign currencies.<br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities of that type. For example, IICO may sell a security if it had a change in its top-down view, if it believes the security no longer offers significant return potential, if there exists political or economic instability in the issuer&#8217;s country, if it believes the security is showing signs of deteriorating fundamentals, if there is weak cash flow to support shareholder returns, and/or if there is a change in IICO&#8217;s macroeconomic perspective. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks</b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program.<br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.</li><li><b>Depositary Receipts Risk.</b> Investments in depositary receipts (including American Depositary Receipts, European Depositary Receipts and Global Depositary Receipts) generally are subject to the same risks of investing in the foreign securities that they evidence or into which they may be converted.</li><li><b>Emerging Market Risk.</b> Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets.</li><li><b>Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk.</b> The Portfolio may use foreign currency exchange transactions and forward foreign currency contracts to hedge certain market risks (such as interest rates, currency exchange rates and broad or specific market movement). These investment techniques involve a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent IICO&#8217;s judgment as to certain market movements is incorrect, the risk of losses that are greater than if the investment technique had not been used.</li><li><b>Foreign Currency Risk.</b> Foreign securities may be denominated in foreign currencies. The value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations.</li><li><b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. The risks may be exacerbated in connection with investments in emerging markets. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses.</li><li><b>Large Company Risk.</b> Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies.</li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.</li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.</li><li><b>Regional Focus Risk.</b> Focusing on a particular geographic region or country involves increased currency, political, regulatory and other risks. To the extent the Portfolio invests a significant portion of its assets in a particular geographic region or country, economic, political, social and environmental conditions in that region or country will have a greater effect on Portfolio performance than they would in a more geographically diversified equity fund and the Portfolio&#8217;s performance may be more volatile than the performance of a more geographically diversified fund. See Market Risk.</li><li><b>Theme Risk.</b> Because the Portfolio&#8217;s investment strategy incorporates the identification of themes, the Portfolio&#8217;s performance may suffer if IICO does not correctly identify such themes or if a theme develops in an unanticipated way. </li></ul> <b>Performance</b> Chart of Year-by-Year Returns<br/>as of December 31 each year Average Annual Total Returns<br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.<br/><br/>Templeton Investment Counsel, LLC served as the investment subadviser to the Portfolio until May 26, 2009, at which time, Waddell &amp; Reed Investment Management Company (WRIMCO) assumed direct investment management responsibilities for the Portfolio. On October 1, 2016, IICO, an affiliate of WRIMCO, became the Portfolio&#8217;s investment adviser.<br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek long-term capital growth. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide capital growth and appreciation.<br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. In the period shown in the chart, the highest quarterly return was 25.64% (the second quarter of 2009) and the lowest quarterly return was -20.48% (the fourth quarter of 2008). 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000146 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000145 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000144 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000147 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000142 column period compact * ~</div> Ivy VIP Asset Strategy <b>Objective </b> To seek to provide total return. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the particular class of shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 39% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Asset Strategy seeks to achieve its objective by allocating its assets among different asset classes of varying correlation around the globe. Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, begins its investment process by investing a portion of the Portfolio&#8217;s assets in global equity securities that IICO believes can outperform the Portfolio&#8217;s benchmark index, the MSCI ACWI Index, over a full market cycle (the Equity Sleeve). IICO then invests the Portfolio&#8217;s remaining assets in various additional asset classes, including global fixed-income securities, United States Treasury instruments, precious metals, commodities and cash (the Diversifying Sleeve), which seek to provide returns to the Portfolio while having less correlation to the Equity Sleeve. IICO may allocate the Portfolio&#8217;s investments among these different asset classes in different proportions at different times, but generally seeks to invest 50% - 80% of the Portfolio&#8217;s total assets (with a long-term target of approximately 65%) in the Equity Sleeve and 20% - 50% of the Portfolio&#8217;s total assets (with a long-term target of approximately 35%) in the Diversifying Sleeve.<br/><br/>In selecting securities for the Portfolio, IICO primarily emphasizes a bottom-up (researching individual issuers) approach and seeks to find relative value across the asset classes noted above. Part of IICO&#8217;s investment process also includes a top-down (assessing the market and economic environment) analysis. <br/><br/>With respect to the Equity Sleeve, IICO seeks what it believes are well-positioned companies with a strong and / or growing sustainable competitive advantage in attractive industries across the globe which IICO believes can exceed current earnings estimates. IICO looks for companies that are taking market share within their industries, which results in high levels of cash, as well as stable to improving margins and returns. IICO generally focuses on companies that are growing, innovating, improving margins, returning capital through dividend growth or share buybacks and / or offering what IICO believes to be sustainable high free cash flow. <br/><br/>Within the Equity Sleeve, the Portfolio has the flexibility to invest in both growth and value companies. Although the Portfolio primarily invests in securities issued by large-capitalization companies (typically, companies with market capitalizations of at least $10 billion at the time of acquisition), it may invest in securities issued by companies of any size. The Equity Sleeve typically holds a limited number of stocks (generally 50 to 70). <br/><br/>Within the Diversifying Sleeve, the Portfolio has the flexibility to invest in a wide range of assets that, in IICO&#8217;s view, present attractive risk-adjusted returns as compared to the Equity Sleeve, and/or reduce the Portfolio&#8217;s overall risk profile because such assets have less correlation to the assets within the Equity Sleeve. Diversifying assets are comprised of global fixed-income instruments including investment grade and high yield (or junk) bonds, as well as emerging market, corporate and sovereign bonds and bank loans. Such fixed-income instruments may include a significant amount, up to 35% of the Portfolio&#8217;s total assets, in high-yield/high-risk bonds, or junk bonds, which include bonds rated BB+ or below by S&amp;P Global Ratings, a division of S&amp;P Global Inc. (S&amp;P) or comparably rated by another nationally recognized statistical rating organization (NRSRO) or, if unrated, determined by IICO to be of comparable quality. When selecting these instruments, IICO focuses heavily on free cash flow and an issuer&#8217;s ability to deleverage itself through the credit cycle. The Portfolio can also invest in government securities issued by the U.S. Treasury (such as Treasury bills, notes or bonds), obligations issued or guaranteed as to principal and interest (but not as to market value) by the U.S. government, its agencies or instrumentalities, and mortgage-backed securities issued or guaranteed by government agencies or government-sponsored enterprises, as well as Treasury inflation-protected securities (TIPS), and cash. <br/><br/>Within each of the Equity Sleeve and the Diversifying Sleeve, the Portfolio may invest in U.S. and foreign securities. The Portfolio generally will invest at least 30% of its assets, and may invest up to 75%, in foreign securities and in securities denominated in currencies other than the U.S. dollar, including issuers located in and/or generating revenue from emerging markets. Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>IICO may allocate the Portfolio&#8217;s investments among the different types of assets noted above in different proportions at different times (keeping in mind the general percentages noted above) and may exercise a flexible strategy in selecting investments. IICO does not intend to concentrate the Portfolio in any geographic region or industry sector; however, it is not limited by investment style or by the issuer&#8217;s location or industry sector. <br/><br/>Subject to diversification limits, the Portfolio also may invest up to 10% of its total assets in precious metals. The Portfolio gains exposure to commodities, including precious metals, derivatives and commodity-linked instruments, by investing in a subsidiary organized in the Cayman Islands (Subsidiary). The Subsidiary is wholly owned and controlled by the Portfolio. The Portfolio&#8217;s investment in the Subsidiary is expected to provide the Portfolio with exposure to investment returns from commodities, derivatives and commodity-linked instruments within the limits of the Federal tax requirements applicable to regulated investment companies, such as the Portfolio. <br/><br/>Generally, in determining whether to sell a security within the Equity Sleeve, IICO considers many factors, which may include a deterioration in a company&#8217;s fundamentals caused by global-specific factors such as geo-political landscape changes, regulatory or currency changes, or increased competition, as well as company-specific factors, such as reduced pricing power, diminished market opportunity, or increased competition. IICO also may sell a security if the price of the security reaches what IICO believes is fair value, to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities, or to raise cash. Within the Diversifying Sleeve, IICO generally sells assets when, in IICO&#8217;s view, such assets no longer have the ability to provide equity-like returns or no longer provide the desired portfolio diversification. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Commodities Risk.</b> Commodity trading, including trading in precious metals, generally is considered speculative because of the significant potential for investment loss. Among the factors that could affect the value of the Portfolio&#8217;s investments in commodities are resource availability, commodity price volatility, speculation in the commodities markets, cyclical economic conditions, sudden political events and adverse international monetary policies. Markets for commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Also, the Portfolio may pay more to store and accurately value its commodity holdings than it does with its other portfolio investments. Moreover, under the Federal tax law, the Portfolio may not derive more than 10% of its annual gross income from gains (without regard to losses) resulting from selling or otherwise disposing of commodities (and other &#8220;non-qualifying&#8221; income). Accordingly, the Portfolio may be required to hold its commodities or to sell them at a loss, or to sell portfolio securities at a gain, when for investment reasons it would not otherwise do so.</li><li><b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.</li><li><b>Credit Risk.</b> An issuer of a fixed-income obligation may not make payments on the obligation when due or may default on its obligation. There also is the risk that an issuer could suffer adverse changes in its financial condition that could lower the credit quality of a security. This could lead to greater volatility in the price of the security, could affect the security&#8217;s liquidity, and could make it more difficult to sell. A downgrade or default affecting any of the Portfolio&#8217;s securities could affect the Portfolio&#8217;s performance. In general, the longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.</li><li><b>Emerging Market Risk.</b> Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets.</li><li><b>Foreign Currency Risk.</b> Foreign securities may be denominated in foreign currencies. The value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations.</li><li><b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold.</li><li><b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. The risks may be exacerbated in connection with investments in emerging markets. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency.</li><li><b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general.</li><li><b>Holdings Risk.</b> The Equity Sleeve of the Portfolio typically holds a limited number of stocks (generally 50 to 70). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Equity Sleeve of the Portfolio invested in a larger number of securities.</li><li><b>Interest Rate Risk.</b> A rise in interest rates may cause a decline in the value of the Portfolio&#8217;s securities, especially securities with longer maturities. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest rates could have on the security&#8217;s price. Thus, the sensitivity of the Portfolio&#8217;s debt securities to interest rate risk will increase with any increase in the duration of those securities. A decline in interest rates may cause the Portfolio to experience a decline in its income. Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. The Portfolio may be subject to heightened interest rate risk as a result of a rise or anticipated rise in interest rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally.</li><li><b>Large Company Risk.</b> Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies.</li><li><b>Liquidity Risk.</b> Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly.</li><li><b>Loan Risk.</b> In addition to the risks typically associated with fixed-income securities, loans carry other risks, including the risk of insolvency of the lending bank or other intermediary. The risks associated with loans are similar to the risks of low-rated debt securities or &#8220;junk&#8221; bonds since loans typically are below investment grade. Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale, may be difficult to value, sometimes trade infrequently on the secondary market and generally are subject to extended settlement periods. Any of these factors may impair the Portfolio&#8217;s ability to sell or realize promptly the full value of its loans in the event of a need to liquidate such loans. Accordingly, loans that have been sold may not be immediately available to meet redemptions. Extended trade settlement periods may result in cash not being immediately available to the Portfolio. As a result, the Portfolio may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. Interests in secured loans have the benefit of collateral and, typically, of restrictive covenants limiting the ability of the borrower to further encumber its assets. There is a risk that the value of the collateral securing a loan in which the Portfolio has an interest may decline and that the collateral may not be sufficient to cover the amount owed on the loan. In the event the borrower defaults, the Portfolio&#8217;s access to the collateral may be limited or delayed by bankruptcy and other insolvency laws. These risks could cause the Portfolio to lose income or principal on a particular investment, which could affect the Portfolio&#8217;s returns. In addition, loans also are subject to the risk that a court could subordinate the loan to presently existing or future indebtedness or take other action detrimental to the holders of the loan. Further, in the event of a default, second or lower lien secured loans will generally be paid only if the value of the collateral exceeds the amount of the borrower&#8217;s obligations to the senior secured lenders, and the remaining collateral may not be sufficient to cover the full amount owed on the loan in which the Portfolio has an interest. Loans made to finance highly leveraged companies or to finance corporate acquisitions or other transactions may be especially vulnerable to adverse changes in economic or market conditions.<br/>With loan assignments, as an assignee, the Portfolio normally will succeed to all rights and obligations of its assignor with respect to the portion of the loan that is being assigned. However, the rights and obligations acquired by the purchaser of a loan assignment may differ from, and be more limited than, those held by the original lenders or the assignor. With loan participations, the Portfolio may not be able to control the exercise of any remedies that the lender would have under the loan and likely would not have any rights against the borrower directly, so that delays and expense may be greater than those that would be involved if the Portfolio could enforce its rights directly against the borrower.</li><li><b>Low-Rated Securities Risk.</b> In general, low-rated debt securities (commonly referred to as &#8220;high yield&#8221; or &#8220;junk&#8221; bonds) offer higher yields due to the increased risk that the issuer will be unable to meet its obligations on interest or principal payments at the time called for by the debt instrument. For this reason, these bonds are considered speculative and could significantly weaken the Portfolio&#8217;s returns. In adverse economic or other circumstances, issuers of these low-rated securities and obligations are more likely to have difficulty making principal and interest payments than issuers of higher-rated securities and obligations. In addition, these low-rated securities and obligations may fluctuate more widely in price and yield than higher-rated securities and obligations and may fall in price during times when the economy is weak or is expected to become weak. Issuers of securities that are in default or have defaulted may fail to resume principal or interest payments, in which case the Portfolio may lose its entire investment. The creditworthiness of issuers of low-rated securities may be more complex to analyze than that of issuers of investment-grade debt securities.</li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.</li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.</li><li><b>Mortgage-Backed and Asset-Backed Securities Risk.</b> Mortgage-backed and asset-backed securities are subject to prepayment risk and extension risk. When interest rates decline, unscheduled prepayments can be expected to accelerate, shortening the average lives of such securities, and the Portfolio may be required to reinvest the proceeds of the prepayments at the lower interest rates then available. Unscheduled prepayments also would limit the potential for capital appreciation on mortgage-backed and asset-backed securities, thereby reducing the Portfolio&#8217;s income. Conversely, when interest rates rise, the values of mortgage-backed and asset-backed securities generally fall. Rising interest rates typically result in decreased prepayments and longer average lives of such securities. This could cause the value of such securities to be more volatile or decline more than other fixed-income securities, and may magnify the effect of the rate increase on the price of such securities.<br/>Certain mortgage-backed securities are U.S. government securities. See U.S. Government Securities Risk for the risks of these types of securities. For non-U.S. government securities, there is the risk that payments on a security will not be made when due, or the value of such security will decline, because the security is not issued or guaranteed as to principal or interest by the U.S. government or by agencies or authorities controlled or supervised by and acting as instrumentalities of the U.S. government or supported by the right of the issuer to borrow from the U.S. government.</li><li><b>Subsidiary Investment Risk.</b> By investing in the Subsidiary, the Portfolio is exposed to the risks associated with the Subsidiary&#8217;s investments. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (1940 Act), and is not subject to all of the investor protections of the 1940 Act. Thus, the Portfolio, as an investor in the Subsidiary, would not have all of the protections offered to investors in registered investment companies. However, because the Portfolio wholly owns and controls the Subsidiary, and the Portfolio and Subsidiary are managed by IICO, it is unlikely that the Subsidiary would take action contrary to the interests of the Portfolio or the Portfolio&#8217;s shareholders. In addition, changes in the laws of the United States and/or the Cayman Islands, under which the Portfolio and the Subsidiary are organized, respectively, could result in the inability of the Portfolio and/or the Subsidiary to operate as intended and could negatively affect the Portfolio and its shareholders. Although, under the Federal tax law, the Portfolio may not derive more than 10% of its annual gross income from gains resulting from selling or otherwise disposing of commodities (and other &#8220;non-qualifying&#8221; income), the Portfolio has received an opinion of counsel, which is not binding on the Internal Revenue Service (IRS) or the courts, that income the Portfolio receives from the Subsidiary should constitute &#8220;qualifying&#8221; income.</li><li><b>U.S. Government Securities Risk.</b> Certain U.S. government securities, such as U.S. Treasury (Treasury) securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. Other U.S. government securities, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB), are not backed by the full faith and credit of the U.S. government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the Treasury.</li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. Once that class has a full calendar year of performance, it will be included in the table below. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek high total return over the long term. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide total return. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 13.96% (the first quarter of 2012) and the lowest quarterly return was -18.90% (the third quarter of 2011). Average Annual Total Returns<br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio&#8217;s contractual class waiver. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000156 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000155 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000154 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000157 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000152 column period compact * ~</div> Ivy VIP Balanced <b>Objective </b> To seek to provide total return through a combination of capital appreciation and current income. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions and/or spreads between bid and asked prices, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 48% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Balanced seeks to achieve its objective by investing primarily in a diversified mix of stocks, debt securities and short-term instruments, depending on market conditions. Regarding its equity investments, the Portfolio invests primarily in medium to large, well-established companies, most of which pay a regular dividend, although it may invest in securities issued by companies of any size. The Portfolio invests at least 25% of its total assets in equity securities. The Portfolio typically holds a limited number of stocks (generally 45 to 55), with the objective of providing potential capital appreciation and some dividend income. <br/><br/>In addition, the Portfolio invests at least 25% of its total assets in debt securities with the objective of providing income and relative stability of capital. The Portfolio may invest in preferred stocks. The majority of the Portfolio&#8217;s debt securities are either U.S. government securities or investment-grade corporate bonds rated BBB- or higher by S&amp;P Global Ratings, a division of S&amp;P Global Inc. (S&amp;P), or comparably rated by another nationally recognized statistical rating organization (NRSRO) or, if unrated, determined by Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, to be of comparable quality. The Portfolio may invest up to 20% of its total assets in non-investment grade debt securities. The Portfolio has no limitations on the range of maturities of the debt securities in which it may invest.<br/><br/>In evaluating investments for the Portfolio, IICO focuses on companies with resilient business models characterized by stable growth rates, strong balance sheets, attractive return profiles and strong free cash flow generation. In so doing, IICO evaluates a company&#8217;s management team, its financial position, its competitive position and the condition of its respective industry in addition to other factors. IICO utilizes financial statements, independent research by its investment management personnel, third party research, brand studies done by outside parties and other tools and processes to identify what it believes to be attractive investment opportunities with a focus on the trajectory and sustainability of a company&#8217;s business model. In addition, IICO&#8217;s analysis informs its view of an appropriate valuation for each potential investment. <br/><br/>Investment opportunities typically fall into two categories: company-specific ideas which include factors such as a company&#8217;s competitive positioning, production cycles, cost restructuring or a new management team; and thematic ideas where IICO considers economic or political forces, interest rate term structure variances, cyclical inflections, changes in consumer behavior or technology shifts. In selecting equity securities for the Portfolio, IICO focuses on capital appreciation and follows a growth at a reasonable price investing strategy. In selecting debt securities for the Portfolio, IICO focuses on current income and capital preservation and generally seeks to invest in investment-grade securities. <br/><br/>Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same analysis as identified above in order to determine if the security is appropriately valued or has met its anticipated price. IICO also may sell a security if the security ceases to produce income, to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.</li><li><b>Credit Risk.</b> An issuer of a fixed-income obligation may not make payments on the obligation when due or may default on its obligation. There also is the risk that an issuer could suffer adverse changes in its financial condition that could lower the credit quality of a security. This could lead to greater volatility in the price of the security, could affect the security&#8217;s liquidity, and could make it more difficult to sell. A downgrade or default affecting any of the Portfolio&#8217;s securities could affect the Portfolio&#8217;s performance. In general, the longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.</li><li><b>Dividend-Paying Stock Risk.</b> Dividend-paying stocks may fall out of favor with investors and underperform non-dividend paying stocks and the market as a whole over any period of time. In addition, there is no guarantee that the companies in which the Portfolio invests will declare dividends in the future or that dividends, if declared, will remain at current levels or increase over time. The amount of any dividend a company may pay may fluctuate significantly. In addition, the value of dividend-paying common stocks can decline when interest rates rise as other investments become more attractive to investors. This risk may be greater due to the current period of historically low interest rates.</li><li><b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold.</li><li><b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general.</li><li><b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 45 to 55). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities.</li><li><b>Interest Rate Risk.</b> A rise in interest rates may cause a decline in the value of the Portfolio&#8217;s securities, especially securities with longer maturities. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest rates could have on the security&#8217;s price. Thus, the sensitivity of the Portfolio&#8217;s debt securities to interest rate risk will increase with any increase in the duration of those securities. A decline in interest rates may cause the Portfolio to experience a decline in its income. Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. The Portfolio may be subject to heightened interest rate risk as a result of a rise or anticipated rise in interest rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally.</li><li><b>Large Company Risk.</b> Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies.</li><li><b>Low-Rated Securities Risk.</b> In general, low-rated debt securities (commonly referred to as &#8220;high yield&#8221; or &#8220;junk&#8221; bonds) offer higher yields due to the increased risk that the issuer will be unable to meet its obligations on interest or principal payments at the time called for by the debt instrument. For this reason, these securities are considered speculative and could significantly weaken the Portfolio&#8217;s returns. In adverse economic or other circumstances, issuers of these low-rated securities and obligations are more likely to have difficulty making principal and interest payments than issuers of higher-rated securities and obligations. In addition, these low-rated securities and obligations may fluctuate more widely in price and yield than higher-rated securities and obligations and may fall in price during times when the economy is weak or is expected to become weak. Issuers of securities that are in default or have defaulted may fail to resume principal or interest payments, in which case the Portfolio may lose its entire investment. The creditworthiness of issuers of low-rated securities may be more complex to analyze than that of issuers of investment-grade debt securities.</li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.</li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.</li><li><b>Mid Size Company Risk.</b> Securities of mid-capitalization companies may be more vulnerable to adverse developments than those of larger companies due to such companies&#8217; limited product lines, limited markets and financial resources and dependence upon a relatively small management group. Securities of mid-capitalization companies may be more volatile and less liquid than the securities of larger companies and may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns.</li><li><b>Preferred Stock Risk.</b> Preferred stock is subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company&#8217;s preferred securities generally pay dividends only after the company makes required payments to holders of its bonds and other debt. Preferred stock also is subject to credit risk with regard to the ability of the issuer to pay the dividend established upon issuance of the preferred stock.</li><li><b>Reinvestment Risk.</b> A decline in interest rates may cause issuers to prepay higher-yielding securities held by the Portfolio, resulting in the Portfolio reinvesting in securities with lower yields, which may cause a decline in its income.</li><li><b>U.S. Government Securities Risk.</b> Certain U.S. government securities, such as U.S. Treasury (Treasury) securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. Other U.S. government securities, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB), are not backed by the full faith and credit of the U.S. government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the Treasury.</li><li><b>Value Stock Risk.</b> Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of IICO, undervalued. The value of a security believed by IICO to be undervalued may never reach what is believed to be its full value, such security&#8217;s value may decrease or such security may be appropriately priced.</li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek to provide current income and, as a secondary objective, to seek long-term appreciation of capital. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide total return through a combination of capital appreciation and current income. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 9.59% (the fourth quarter of 2010) and the lowest quarterly return was -10.91% (the fourth quarter of 2008). Average Annual Total Returns<br/><br/>as of December 31, 2017 As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000166 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000165 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000164 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000167 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000162 column period compact * ~</div> Ivy VIP Energy <b>Objective</b> To seek to provide capital growth and appreciation. <b>Fees and Expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees <br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the particular class of shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 22% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Energy seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in securities of companies within the energy sector, which includes all aspects of the energy industry, such as exploration, discovery, production, distribution or infrastructure of energy and/or alternative energy sources. <br/><br/>These companies may include, but are not limited to, oil companies, oil and gas drilling, equipment and services companies, oil and gas exploration and production companies, oil and gas storage and transportation companies, natural gas pipeline companies, refinery companies, energy conservation companies, coal, transporters, utilities, alternative energy companies and innovative energy technology companies. The Portfolio also may invest in companies that are not within the energy sector that are engaged in the development of products and services to enhance energy efficiency for the users of those products and services. <br/><br/>After conducting a top-down (assessing the market environment) market analysis of the energy industry and geopolitical issues and then identifying trends and sectors, Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, uses a research-oriented, bottom-up (researching individual issuers) investment approach when selecting securities for the Portfolio, focusing on company fundamentals and growth prospects. In general, the Portfolio emphasizes companies that IICO believes are strongly managed and can generate above average, capital growth and appreciation. IICO analyzes net asset value, free cash flow and balance sheet strength and focuses on companies that exhibit capital discipline with a low cost structure and strong assets. The Portfolio invests in a blend of value and growth companies domiciled throughout the world, which may include companies that are offered in initial public offerings (IPOs). While IICO typically seeks to invest a majority of the Portfolio&#8217;s assets in U.S. securities, the Portfolio may invest up to 100% of its total assets in foreign securities. The Portfolio typically holds a limited number of stocks (generally 40 to 55). <br/><br/>Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, potentially including companies domiciled or traded or doing business in emerging markets, even if the Portfolio is not invested directly in such markets. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities to determine whether the security has ceased to offer significant growth potential, has sufficiently exceeded its target price, has become undervalued and/or whether the prospects of the issuer have deteriorated. IICO also will consider the effect of commodity price trends on certain holdings, poor capital management or whether a company has experienced a change or deterioration in its fundamentals, its valuation or its competitive advantage. IICO also may sell a security to take advantage of what it believes are more attractive investment opportunities, to reduce the Portfolio&#8217;s holding in that security or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Concentration Risk.</b> Because the Portfolio invests more than 25% of its total assets in the energy related industry, the Portfolio&#8217;s performance may be more susceptible to a single economic, regulatory or technological occurrence than a fund that does not concentrate its investments in this industry. Securities of companies within specific industries or sectors of the economy may periodically perform differently than the overall market. In addition, the Portfolio&#8217;s performance may be more volatile than an investment in a portfolio of broad market securities and may underperform the market as a whole, due to the relatively limited number of issuers of energy-related securities. </li><li> <b>Energy Sector Risk.</b> Investment risks associated with investing in energy securities, in addition to other risks, include price fluctuation caused by real and perceived inflationary trends and political developments, the cost assumed in complying with environmental safety regulations, demand of energy fuels, energy conservation, the success of exploration projects, and tax and other governmental regulations. </li><li> <b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold. </li><li> <b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. The risks may be exacerbated in connection with investments in emerging markets. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. </li><li> <b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. </li><li> <b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 40 to 55). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities. </li><li> <b>Initial Public Offering (IPO) Risk.</b> Any positive effect of investments in IPOs may not be sustainable because of a number of factors. Namely, the Portfolio may not be able to buy shares in some IPOs, or may be able to buy only a small number of shares. Also, the performance of IPOs generally is volatile, and is dependent on market psychology and economic conditions. To the extent that IPOs have a significant positive impact on the Portfolio&#8217;s performance, this may not be able to be replicated in the future. The relative performance impact of IPOs also is likely to decline as the Portfolio grows. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </li><li> <b>Value Stock Risk.</b> Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of IICO, undervalued. The value of a security believed by IICO to be undervalued may never reach what is believed to be its full value, such security&#8217;s value may decrease or such security may be appropriately priced. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. Once that class has a full calendar year of performance, it will be included in the table below. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to provide long-term capital appreciation. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide capital growth and appreciation. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 23.73% (the second quarter of 2008) and the lowest quarterly return was -33.43% (the third quarter of 2008). Average Annual Total Returns <br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio&#8217;s contractual class waiver. Ivy VIP Energy seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in securities of companies within the energy sector, which includes all aspects of the energy industry, such as exploration, discovery, production, distribution or infrastructure of energy and/or alternative energy sources. <br/><br/>These companies may include, but are not limited to, oil companies, oil and gas drilling, equipment and services companies, oil and gas exploration and production companies, oil and gas storage and transportation companies, natural gas pipeline companies, refinery companies, energy conservation companies, coal, transporters, utilities, alternative energy companies and innovative energy technology companies. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 800.777.6472 2008-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000176 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000175 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000174 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000177 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000172 column period compact * ~</div> Ivy VIP Natural Resources <b>Objective </b> To seek to provide capital growth and appreciation. <b>Fees and Expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees <br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 44% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Natural Resources seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of companies with operations throughout the world that own, explore or develop natural resources and other basic commodities or supply goods and services to such companies. <br/><br/>For these purposes, &#8220;natural resources&#8221; generally includes, but is not limited to: energy (such as electricity and gas utilities, producers/developers, equipment/services, storage/transportation, gas/oil refining and marketing, service/drilling, pipelines and master limited partnerships (MLPs)), alternative energy (such as uranium, coal, nuclear, hydrogen, wind, solar, fuel cells), industrial products (such as building materials, cement, packaging, chemicals, materials infrastructure, supporting transport and machinery), forest products (such as lumber, plywood, pulp, paper, newsprint, tissue), base metals (such as aluminum, copper, nickel, zinc, iron ore and steel), precious metals and minerals (such as gold, silver, platinum, diamonds), and agricultural products (grains and other foods, seeds, fertilizers, water). <br/><br/>After conducting a top-down (assessing the market environment) market analysis of the natural resources industry and identifying trends and sectors, Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, uses a research-oriented, bottom-up (researching individual issuers) investment approach when selecting securities for the Portfolio, focusing on company fundamentals and growth prospects. IICO invests in a blend of value and growth companies domiciled throughout the world, and emphasizes companies that it believes are strongly managed and can generate above-average capital growth and appreciation. IICO focuses on companies that it believes are high quality, have the potential for sustainable long-term growth and that are low-cost leaders that possess historically strong-producing assets. The Portfolio typically holds a limited number of stocks (generally 30 to 50). <br/><br/>Under normal circumstances, IICO anticipates that a significant portion of the Portfolio&#8217;s holdings will consist of issuers in the energy and materials sectors. <br/><br/>The Portfolio seeks to be diversified internationally, and therefore, IICO invests in foreign companies and U.S. companies that have principal operations in foreign jurisdictions. While IICO typically seeks to invest a majority of the Portfolio&#8217;s assets in the United States, the Portfolio may invest up to 100% of its total assets in foreign securities. Exposure to companies in any one particular foreign country typically is less than 20% of the Portfolio&#8217;s total assets. The Portfolio also may have exposure to companies located in, and/or doing business in, emerging markets. <br/><br/>An investment in foreign securities presents additional risks such as currency fluctuations and political or economic conditions affecting the foreign country. Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>The Portfolio may use forward currency contracts in an effort to manage foreign currency exposure. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities to determine whether the security has ceased to offer significant growth potential, has sufficiently exceeded its target price, has become overvalued and/or whether the prospects of the issuer have deteriorated. IICO also will consider the effect of commodity price trends on certain holdings, poor capital management or whether a company has experienced a change or deterioration in its fundamentals, its valuation or its competitive advantage. IICO also may sell a security to take advantage of what it believes are more attractive investment opportunities, to reduce the Portfolio&#8217;s holding in that security or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program.<br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Commodities Risk.</b> Investments in certain issuers, such as resource extraction and production companies, are sensitive to fluctuations in certain commodity markets, and changes in those markets may cause the Portfolio&#8217;s holdings to lose value. Commodity trading generally is considered speculative because of the significant potential for investment loss. Among the factors that could affect the value of commodities are cyclical economic conditions, weather, embargoes, tariffs, regulatory developments, sudden political events and adverse international monetary policies. Markets for commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Moreover, under the Federal tax law, the Portfolio may not derive more than 10% of its annual gross income from gains (without regard to losses) resulting from selling or otherwise disposing of commodities (and other &#8220;non-qualifying&#8221; income). Accordingly, the Portfolio may be required to hold its commodities or to sell them at a loss, or to sell portfolio securities at a gain, when for investment reasons it would not otherwise do so. </li><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Emerging Market Risk.</b> Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. </li><li> <b>Energy Sector Risk.</b> Investment risks associated with investing in energy securities, in addition to other risks, include price fluctuation caused by real and perceived inflationary trends and political developments, the cost assumed in complying with environmental safety regulations, demand of energy fuels, energy conservation, the success of exploration projects, and tax and other governmental regulations. </li><li> <b>Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk.</b> The Portfolio may use foreign currency exchange transactions and forward foreign currency contracts to hedge certain market risks (such as interest rates, currency exchange rates and broad or specific market movement). These investment techniques involve a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent IICO&#8217;s judgment as to certain market movements is incorrect, the risk of losses that are greater than if the investment technique had not been used. </li><li> <b>Foreign Currency Risk.</b> Foreign securities may be denominated in foreign currencies. The value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. </li><li> <b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold. </li><li> <b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. The risks may be exacerbated in connection with investments in emerging markets. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. </li><li> <b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. </li><li> <b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 30 to 50). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities. </li><li> <b>Liquidity Risk.</b> Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Materials Sector Risk.</b> Investment risks associated with investing in securities in the materials sector, in addition to other risks, include adverse effects from commodity price volatility, exchange rates, import controls and increased competition; the possibility that production of industrial materials will exceed demand as a result of overbuilding or economic downturns, leading to poor investment returns; risk for environmental damage and product liability claims; and adverse effects from depletion of resources, technical progress, labor relations and government regulations. </li><li> <b>Natural Resources Industry Risk.</b> Investment risks associated with investing in securities of natural resources companies, in addition to other risks, include price fluctuation caused by real and perceived inflationary trends and political developments, the cost assumed by natural resource companies in complying with environmental and safety regulations, changes in supply of, or demand for, various natural resources, changes in energy prices, environmental incidents, energy conservation, the success of exploration projects, changes in commodity prices, and special risks associated with natural or man-made disasters. Securities of natural resource companies that are dependent on a single commodity, or are concentrated in a single commodity sector, may exhibit high volatility attributable to commodity prices. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </li><li> <b>Value Stock Risk.</b> Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of IICO, undervalued. The value of a security believed by IICO to be undervalued may never reach what is believed to be its full value, such security&#8217;s value may decrease or such security may be appropriately priced. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Mackenzie Financial Corporation served as the investment subadviser to the Portfolio until July 1, 2013, at which time, Waddell &amp; Reed Investment Management Company (WRIMCO) assumed direct investment management responsibilities for the Portfolio. On October 1, 2016, IICO, an affiliate of WRIMCO, became the Portfolio&#8217;s investment adviser. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek to provide long-term growth and any income realized was incidental. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide capital growth and appreciation. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 31.63% (the second quarter of 2009) and the lowest quarterly return was -41.06% (the fourth quarter of 2008). Average Annual Total Returns <br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it reflects a change in the Portfolio&#8217;s management fee structure. Ivy VIP Natural Resources seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of companies with operations throughout the world that own, explore or develop natural resources and other basic commodities or supply goods and services to such companies. <br/><br/>For these purposes, &#8220;natural resources&#8221; generally includes, but is not limited to: energy (such as electricity and gas utilities, producers/developers, equipment/services, storage/transportation, gas/oil refining and marketing, service/drilling, pipelines and master limited partnerships (MLPs)), alternative energy (such as uranium, coal, nuclear, hydrogen, wind, solar, fuel cells), industrial products (such as building materials, cement, packaging, chemicals, materials infrastructure, supporting transport and machinery), forest products (such as lumber, plywood, pulp, paper, newsprint, tissue), base metals (such as aluminum, copper, nickel, zinc, iron ore and steel), precious metals and minerals (such as gold, silver, platinum, diamonds), and agricultural products (grains and other foods, seeds, fertilizers, water). As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. 800.777.6472 (The Portfolio&#8217;s benchmark changed, effective April 30, 2018. IICO believes that the S&P North American Natural Resources Sector Index is more reflective of the types of securities in which the Portfolio invests than the three indexes noted below.) 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000186 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000185 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000184 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000187 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000182 column period compact * ~</div> Ivy VIP Science and Technology <b>Objective </b> To seek to provide growth of capital. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees <br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the particular class of shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 27% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Science and Technology invests primarily in the equity securities of science and technology companies around the globe. Under normal circumstances, the Portfolio invests at least 80% of its net assets in securities of science or technology companies. Such companies may include companies that, in the opinion of Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, derive a competitive advantage by the application of scientific or technological developments or discoveries to grow their business or increase their competitive advantage. Science and technology companies are companies whose products, processes or services, in the opinion of IICO, are being, or are expected to be, significantly benefited by the use or commercial application of scientific or technological developments or discoveries. The Portfolio also may invest in companies that utilize science and/or technology as an agent of change to significantly enhance their business opportunities. The Portfolio may invest in securities issued by companies of any size, and may invest without limitation in foreign securities, including securities of issuers within emerging markets. <br/><br/>The Portfolio is non-diversified, meaning that it may invest a significant portion of its total assets in a limited number of issuers. <br/><br/>IICO typically emphasizes growth potential in selecting stocks; that is, IICO seeks companies in which earnings are likely to grow faster than the economy. IICO aims to identify strong secular trends within industries and then applies a largely bottom-up (researching individual issuers) stock selection process by considering a number of factors in selecting securities for the Portfolio. These may include but are not limited to a company&#8217;s growth potential, earnings potential, quality of management, valuation, financial statements, industry position/market size potential and applicable economic and market conditions, as well as whether a company&#8217;s products and services have high barriers to entry. The Portfolio typically holds a limited number of stocks (generally 40 to 60). <br/><br/>Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities in order to determine whether the security has ceased to offer significant growth potential, has become overvalued and/or whether the company prospects of the issuer have deteriorated due to a change in management, change in strategy and/or a change in its financial characteristics. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Concentration Risk.</b> Because the Portfolio invests more than 25% of its total assets in the science and technology industry, the Portfolio&#8217;s performance may be more susceptible to a single economic, regulatory or technological occurrence than a fund that does not concentrate its investments in this industry. Securities of companies within specific industries or sectors of the economy may periodically perform differently than the overall market. In addition, the Portfolio&#8217;s performance may be more volatile than an investment in a portfolio of broad market securities and may underperform the market as a whole, due to the relatively limited number of issuers of science and technology related securities. </li><li> <b>Emerging Market Risk.</b> Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. </li><li> <b>Foreign Exposure Risk.</b> The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s operations, products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold. </li><li> <b>Foreign Securities Risk.</b> Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. The risks may be exacerbated in connection with investments in emerging markets. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. </li><li> <b>Growth Stock Risk.</b> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general. </li><li> <b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks (generally 40 to 60), and the Portfolio&#8217;s manager also tends to invest a significant portion of the Portfolio&#8217;s total assets in a limited number of stocks. As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities or if the Portfolio&#8217;s manager invested a greater portion of the Portfolio&#8217;s total assets in a larger number of stocks. </li><li> <b>Information Technology Sector Risk.</b> Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation. </li><li> <b>Large Company Risk.</b> Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies. </li><li> <b>Liquidity Risk.</b> Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Mid Size Company Risk.</b> Securities of mid-capitalization companies may be more vulnerable to adverse developments than those of larger companies due to such companies&#8217; limited product lines, limited markets and financial resources and dependence upon a relatively small management group. Securities of mid-capitalization companies may be more volatile and less liquid than the securities of larger companies and may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns. </li><li> <b>Non-Diversification Risk.</b> The Portfolio is a &#8220;non-diversified&#8221; mutual fund and, as such, its investments are not required to meet certain diversification requirements under Federal law. Compared with &#8220;diversified&#8221; portfolios, the Portfolio may invest a greater percentage of its assets in the securities of an issuer. Thus, the Portfolio may hold fewer securities than other portfolios. A decline in the value of those investments would cause the Portfolio&#8217;s overall value to decline to a greater degree than if the Portfolio held more diversified holdings. </li><li> <b>Science and Technology Industry Risk.</b> Investment risks associated with investing in science and technology securities, in addition to other risks, include: operating in rapidly changing fields, abrupt or erratic market movements, limited product lines, markets or financial resources, management that is dependent on a limited number of people, short product cycles, aggressive pricing of products and services, new market entrants and obsolescence of existing technology. In addition, these securities may be impacted by commodity and energy prices, which can be volatile, and may increase the volatility of these securities. </li><li> <b>Sector Risk.</b> At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </li><li> <b>Small Company Risk.</b> Securities of small-capitalization companies are subject to greater price volatility, lower trading volume and less liquidity due to, among other things, such companies&#8217; small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations and such securities may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns. In some cases, there could be difficulties in selling securities of small-capitalization companies at the desired time. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. Once that class has a full calendar year of performance, it will be included in the table below. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek long-term capital growth. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 20.14% (the first quarter of 2012) and the lowest quarterly return was -18.81% (the fourth quarter of 2008). Average Annual Total Returns <br/><br/>as of December 31, 2017 Ivy VIP Science and Technology invests primarily in the equity securities of science and technology companies around the globe. Under normal circumstances, the Portfolio invests at least 80% of its net assets in securities of science or technology companies. Such companies may include companies that, in the opinion of Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, derive a competitive advantage by the application of scientific or technological developments or discoveries to grow their business or increase their competitive advantage. Science and technology companies are companies whose products, processes or services, in the opinion of IICO, are being, or are expected to be, significantly benefited by the use or commercial application of scientific or technological developments or discoveries. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. <ul type="square"><li> <b>Non-Diversification Risk.</b> The Portfolio is a &#8220;non-diversified&#8221; mutual fund and, as such, its investments are not required to meet certain diversification requirements under Federal law. Compared with &#8220;diversified&#8221; portfolios, the Portfolio may invest a greater percentage of its assets in the securities of an issuer. Thus, the Portfolio may hold fewer securities than other portfolios. A decline in the value of those investments would cause the Portfolio&#8217;s overall value to decline to a greater degree than if the Portfolio held more diversified holdings. </li></ul> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio&#8217;s Class I shares because the share class has not been in existence for a full calendar year. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 2008-12-31 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000196 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000195 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000194 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000197 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000192 column period compact * ~</div> Ivy VIP Securian Real Estate Securities <b>Objective </b> To seek to provide total return through capital appreciation and current income. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same taking into account the management fee reduction for the period indicated above. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Portfolio Turnover </b> The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 73% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Securian Real Estate Securities seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in the securities of companies in the real estate or real estate-related industries. &#8220;Real estate&#8221; securities include securities of issuers that receive at least 50% of their gross revenue from the construction, ownership, leasing, management, financing or sale of residential, commercial or industrial real estate. &#8220;Real estate-related&#8221; securities include securities issued by companies primarily engaged in businesses that sell or offer products or services that are closely related to the real estate industry. The Portfolio does not directly invest in real estate. <br/><br/>Most of the Portfolio&#8217;s real estate securities portfolio consists of securities issued by real estate investment trusts (REITs) and other real estate operating companies (REOCs) that are listed on a securities exchange or traded over-the-counter. A REIT is a corporation (or a trust or association that otherwise would be taxable as a domestic corporation) that invests in real estate, mortgages on real estate or shares issued by other REITs and qualifies for pass-through Federal income tax treatment provided it meets certain conditions, including the requirement that it distribute at least 90% of its taxable income. A REOC is a corporation or partnership (or an entity classified as such for Federal tax purposes) that makes similar investments, except that a REOC has not elected or qualified to be taxed as a REIT and, therefore, among other differences, does not have a requirement to distribute any of its taxable income. REOCs also are more flexible than REITs in terms of what types of real estate investments they can make. At times, the Portfolio may invest a significant portion of its total assets in a limited number of issuers. <br/><br/>The Portfolio&#8217;s investment subadviser, Securian Asset Management, Inc. (Securian), primarily utilizes a bottom-up (researching individual issuers) fundamental stock-picking approach in selecting what it believes are high-quality securities for investment by the Portfolio, which may include consideration of factors such as an issuer&#8217;s financial condition and valuation, capital structure and risk, income durability, dividend sustainability, financial performance, quality of management, policies and strategies, real estate properties and competitive market condition. Other key attributes considered include an issuer&#8217;s liquidity, transparency, diversification, return history and cash flow growth potential. The Portfolio then generally invests in those issuers that Securian believes have potential for long-term sustainable growth in earnings, or those trading at discounts to the underlying value of assets owned. Securian also seeks companies it believes have strong profitability and the ability to provide a strong return on investment, a dominant market position, stable property management and high-quality buildings and building maintenance. As part of its investment process, Securian also considers macro-economic and technical factors impacting real estate securities. <br/><br/>Securian considers various indicators in determining to sell a security, which may include the following: relative valuation is no longer compelling and operating conditions and/or performance are not sustainable, company fundamentals have deteriorated or do not meet expectations, and economics, financial market or sector of the real estate industry has weakened. Securian also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Company Risk.</b> A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </li><li> <b>Concentration Risk.</b> Because the Portfolio invests more than 25% of its total assets in the real estate industry, the Portfolio&#8217;s performance may be more susceptible to a single economic, regulatory or technological occurrence than a fund that does not concentrate its investments in this industry. Securities of companies within specific industries or sectors of the economy may periodically perform differently than the overall market. In addition, the Portfolio&#8217;s performance may be more volatile than an investment in a portfolio of broad market securities and may underperform the market as a whole, due to the relatively limited number of issuers of real estate and real estate related securities. </li><li> <b>Holdings Risk.</b> The Portfolio typically holds a limited number of stocks, and the Portfolio&#8217;s managers also tend to invest a significant portion of the Portfolio&#8217;s total assets in a limited number of stocks. As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio&#8217;s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities or if the Portfolio&#8217;s managers invested a greater portion of the Portfolio&#8217;s total assets in a larger number of stocks. </li><li> <b>Income Risk.</b> The risk that the Portfolio may experience a decline in its income due to falling interest rates, earnings declines, or income decline within a security. The amount and rate of distributions that the Portfolio&#8217;s shareholders receive are affected by the income that the Portfolio receives from its portfolio holdings. If the income is reduced, distributions by the Portfolio to shareholders may be less. </li><li> <b>Interest Rate Risk.</b> A rise in interest rates may cause a decline in the value of the Portfolio&#8217;s securities, especially securities with longer maturities. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest rates could have on the security&#8217;s price. Thus, the sensitivity of the Portfolio&#8217;s debt securities to interest rate risk will increase with any increase in the duration of those securities. The value of dividend-paying common stocks, including equity REITs, can decline when interest rates rise. A decline in interest rates may cause the Portfolio to experience a decline in its income. Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. The Portfolio may be subject to heightened interest rate risk as a result of a rise or anticipated rise in interest rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on Securian&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li><li> <b>Real Estate Industry Risk.</b> Investment risks associated with investing in real estate securities, in addition to other risks, include rental income fluctuation, depreciation, property tax value changes, differences in real estate market values, overbuilding and extended vacancies, increased competition, operating expenses or zoning laws, costs of environmental clean-up or damages from natural disasters, cash flow fluctuations, and defaults by borrowers and tenants. </li><li> <b>REIT-Related Risk.</b> The value of the Portfolio&#8217;s securities of a REIT may be adversely affected by changes in the value of the REIT&#8217;s underlying property or the property secured by mortgages the REIT holds, loss of REIT Federal tax status or changes in laws and/or rules related to that status, or the REIT&#8217;s failure to maintain its exemption from registration under the Investment Company Act of 1940, as amended. In addition, the Portfolio may experience a decline in its income from REIT securities due to falling interest rates or decreasing dividend payments. </li><li> <b>REOC-Related Risk.</b> REOCs are not required to pay any specific level of income as dividends, and there is no minimum restriction on the number of owners or limits on ownership concentration. The value of the Portfolio&#8217;s REOC securities may be adversely affected by certain of the same factors that adversely affect REITs. In addition, a corporate REOC does not qualify for the favorable Federal tax treatment that is accorded a REIT. In addition, the Portfolio may experience a decline in its income from REOC securities due to falling interest rates or decreasing dividend payments. </li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 29.85% (the third quarter of 2009) and the lowest quarterly return was -36.77% (the fourth quarter of 2008). Average Annual Total Returns <br/><br/>as of December 31, 2017 Ivy VIP Securian Real Estate Securities seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in the securities of companies in the real estate or real estate-related industries. &#8220;Real estate&#8221; securities include securities of issuers that receive at least 50% of their gross revenue from the construction, ownership, leasing, management, financing or sale of residential, commercial or industrial real estate. &#8220;Real estate-related&#8221; securities include securities issued by companies primarily engaged in businesses that sell or offer products or services that are closely related to the real estate industry. The Portfolio does not directly invest in real estate. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. 800.777.6472 The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. (The Portfolio&#8217;s benchmark changed from Wilshire US Real Estate Securities Index, effective April 30, 2018. IICO believes that the FTSE Nareit Equity REITs Index is more reflective of the types of securities in which the Portfolio invests than the Wilshire US Real Estate Securities Index.) highest quarterly return 2009-06-30 lowest quarterly return highest quarterly return 2009-06-30 lowest quarterly return highest quarterly return 2012-03-31 lowest quarterly return highest quarterly return 2010-12-31 lowest quarterly return 2009-09-30 lowest quarterly return <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000206 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000205 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000204 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000207 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000202 column period compact * ~</div> Ivy VIP Government Money Market <b>Objective </b> To seek to provide current income consistent with maintaining liquidity and preservation of capital. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: <b>Principal Investment Strategies </b> Ivy VIP Government Money Market seeks to achieve its objective by investing, under normal circumstances, at least 99.5% of its total assets in: (1) debt securities issued or guaranteed by the United States or certain United States government agencies or instrumentalities (government securities), (2) repurchase agreements that are fully collateralized by cash and/or government securities, and/or (3) cash. The Portfolio also has adopted a policy to invest, under normal circumstances, at least 80% of its net assets in government securities and/or repurchase agreements that are fully collateralized by government securities. In contrast to the Portfolio&#8217;s 99.5% policy, the Portfolio&#8217;s 80% policy does not include cash or repurchase agreements collateralized by cash. The Portfolio&#8217;s investments in government securities may include direct obligations of the U.S. Treasury (such as Treasury bills, notes or bonds), obligations issued or guaranteed as to principal and interest (but not as to market value) by the U.S. government, its agencies or instrumentalities, and mortgage-backed securities issued or guaranteed by government agencies or government-sponsored enterprises. The Portfolio considers repurchase agreements with the Federal Reserve Bank of New York to be government securities for purposes of the Portfolio&#8217;s investment policies. <br/><br/>The Portfolio seeks, as well, to maintain a net asset value (NAV) of $1.00 per share. The Portfolio maintains a dollar-weighted average maturity of 60 calendar days or less, a dollar-weighted average life of 120 calendar days or less, and the Portfolio invests only in securities with a remaining maturity of not more than 397 calendar days. <br/><br/>Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, selects securities for the Portfolio in compliance with the maturity, quality, diversification and liquidity requirements of Rule 2a-7 under the Investment Company Act of 1940, as amended (Rule 2a-7). IICO considers a number of factors in selecting securities for the Portfolio, including the credit quality of the particular issuer or guarantor of the security, along with the liquidity, maturity and yield. <br/><br/>Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses when buying securities to determine whether the security no longer offers adequate return or complies with Rule 2a-7. IICO also may sell a security to reduce the Portfolio&#8217;s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash. <br/><br/>The Portfolio intends to continue to qualify as a &#8220;government money market fund,&#8221; as such term is defined in or interpreted under Rule 2a-7. &#8220;Government money market funds&#8221; are exempt from requirements that permit money market funds to impose liquidity fees and/or temporary redemption gates. While the Board of Trustees of Ivy Variable Insurance Portfolios (Board) may elect in the future to subject the Portfolio to liquidity fees or redemption gates, the Board has not elected to do so at this time and has no current intention to do so. <b>Principal Investment Risks </b> You could lose money by investing in the Portfolio. Although the Portfolio seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Portfolio&#8217;s sponsor has no legal obligation to provide financial support to the Portfolio, and you should not expect that the sponsor will provide financial support to the Portfolio at any time. The Portfolio is not intended as a complete investment program. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Amortized Cost Risk.</b> In the event that the Board determines that the extent of the deviation between the Portfolio&#8217;s amortized cost per share and its market-based NAV per share could result in material dilution or other unfair results to shareholders, the Board will cause the Portfolio to take such action as it deems appropriate to eliminate, or reduce to the extent practicable, such dilution or unfair results, including but not limited to, suspending redemption of Portfolio shares or liquidating the Portfolio. </li></ul><ul type="square"><li> <b>Credit Risk.</b> An issuer of a fixed-income obligation may not make payments on the obligation when due or may default on its obligation. There also is the risk that an issuer could suffer adverse changes in its financial condition that could lower the credit quality of a security. This could lead to greater volatility in the price of the security, could affect the security&#8217;s liquidity, and could make it more difficult to sell. A downgrade or default affecting any of the Portfolio&#8217;s securities could affect the Portfolio&#8217;s performance. In general, the longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk. U.S. government securities generally have the least credit risk, but are not completely free from credit risk. Any downgrade of securities issued by the U.S. government may result in a downgrade of securities issued by its agencies or instrumentalities. </li></ul><ul type="square"><li> <b>Income Risk.</b> The risk that the Portfolio may experience a decline in its income due to falling interest rates, earnings declines, or income decline within a security. The amount and rate of distributions that the Portfolio&#8217;s shareholders receive are affected by the income that the Portfolio receives from its portfolio holdings. If the income is reduced, distributions by the Portfolio to shareholders may be less. </li></ul><ul type="square"><li> <b>Interest Rate Risk.</b> A rise in interest rates may cause a decline in the value of the Portfolio&#8217;s securities, especially securities with longer maturities. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest rates could have on the security&#8217;s price. Thus, the sensitivity of the Portfolio&#8217;s debt securities to interest rate risk will increase with any increase in the duration of those securities. A decline in interest rates may cause the Portfolio to experience a decline in its income. Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. The Portfolio may be subject to heightened interest rate risk as a result of a rise or anticipated rise in interest rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li></ul><ul type="square"><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. </li></ul><ul type="square"><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li></ul><ul type="square"><li> <b>Money Market Fund Regulatory Risk.</b> As a money market fund, the Portfolio is subject to the specific rules governing money market funds and is subject to regulation by the SEC. These rules govern the manner in which the Portfolio is structured and operated and could significantly affect the money market fund industry generally and, therefore, may impact Portfolio expenses, operations, returns and liquidity. </li></ul><ul type="square"><li> <b>Mortgage-Backed and Asset-Backed Securities Risk.</b> Mortgage-backed and asset-backed securities are subject to prepayment risk and extension risk. When interest rates decline, unscheduled prepayments can be expected to accelerate, shortening the average lives of such securities, and the Portfolio may be required to reinvest the proceeds of the prepayments at the lower interest rates then available. Unscheduled prepayments also would limit the potential for capital appreciation on mortgage-backed and asset-backed securities, thereby reducing the Portfolio&#8217;s income. Conversely, when interest rates rise, the values of mortgage-backed and asset-backed securities generally fall. Rising interest rates typically result in decreased prepayments and longer average lives of such securities. This could cause the value of such securities to be more volatile or decline more than other fixed-income securities, and may magnify the effect of the rate increase on the price of such securities. The mortgage-backed securities in which the Portfolio generally invests are U.S. government securities. See U.S. Government Securities Risk for the risks of these types of securities. </li></ul><ul type="square"><li> <b>Reinvestment Risk.</b> A decline in interest rates may cause issuers to prepay higher-yielding securities held by the Portfolio, resulting in the Portfolio reinvesting in securities with lower yields, which may cause a decline in its income. </li></ul><ul type="square"><li> <b>Repurchase Agreements Risk.</b> Repurchase agreements are agreements in which the seller of a security to the Portfolio agrees to repurchase that security from the Portfolio at a mutually agreed-upon price and time. The return on the securities subject to the repurchase agreement may be more or less than the return on the repurchase agreement. Repurchase agreements carry the risk that the counterparty may not fulfill its obligations under the agreement. This could cause the Portfolio&#8217;s income to decline and may impact the Portfolio&#8217;s performance. </li></ul><ul type="square"><li> <b>U.S. Government Securities Risk.</b> Certain U.S. government securities, such as U.S. Treasury (Treasury) securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. Other U.S. government securities, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB), are not backed by the full faith and credit of the U.S. government and, instead, may be supported only by the credit of the issuer or by the right of the issuer to borrow from the Treasury.</li></ul> <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with that of a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek maximum current income consistent with stability of principal. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide current income consistent with maintaining liquidity and preservation of capital. <br/><br/>Effective October 14, 2016, the Portfolio changed its name and investment strategy to reflect that it is classified as a &#8220;government money market fund,&#8221; as such term is defined in or interpreted under Rule 2a-7. Performance prior to October 14, 2016 reflects the Portfolio&#8217;s former investment strategy as a prime money market fund, which permitted investments in certain types of securities that, as a government money market fund, the Portfolio is no longer permitted to hold. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance, including its most recent 7-day yield. Chart of Year-by-Year Returns<br/> as of December 31 each year In the period shown in the chart, the highest quarterly return was 0.76% (the first quarter of 2008) and the lowest quarterly return was 0.00% (the third and fourth quarters of 2010 and the first, second, third and fourth quarters of 2011, 2012, 2013, 2014 and 2015 and the first quarter of 2016). As of December 31, 2017, the 7-day yield was 1.03%. Yields are computed by annualizing the average daily dividend per share during the time period for which the yield is presented. Average Annual Total Returns <br/><br/>as of December 31, 2017 You could lose money by investing in the Portfolio. Although the Portfolio seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with that of a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 As of December 31, 2017, the 7-day yield was 1.03%. Yields are computed by annualizing the average daily dividend per share during the time period for which the yield is presented. highest quarterly return 2008-06-30 lowest quarterly return highest quarterly return 2009-06-30 lowest quarterly return highest quarterly return 2012-03-31 lowest quarterly return 2008-12-31 highest quarterly return <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000216 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000215 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000214 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000217 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000212 column period compact * ~</div> Ivy VIP Pathfinder Aggressive <b>Objective </b> To seek to provide growth of capital consistent with a more aggressive level of risk as compared to the other Ivy VIP Pathfinder Portfolios. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees <br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your direct and indirect costs, combined, would be: <b>Portfolio Turnover </b> The Portfolio does not incur transaction costs, such as commissions, when it buys and sells shares of Underlying Funds that are Portfolios of the Trust (or &#8220;turns over&#8221; its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly. If the Portfolio were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual portfolio operating expenses or in the example and would affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 20% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Pathfinder Aggressive seeks to achieve its objective by allocating its assets among the asset classes below so that approximately 50-60% of the value of the Portfolio&#8217;s assets is in the U.S. stocks class, approximately 25-35% of the Portfolio&#8217;s assets is in the international/global stocks class, approximately 0-20% of the Portfolio&#8217;s assets is in the bonds class, and approximately 0-25% of the Portfolio&#8217;s assets is in the short-term investments class. Ivy VIP Pathfinder Aggressive implements this allocation by investing primarily in the Underlying Funds shown below. The Portfolio typically will invest in Class I shares of an Underlying Fund to the extent offered by the Underlying Fund; otherwise the Portfolio will invest in Class II shares of an Underlying Fund. The Portfolio&#8217;s currently anticipated allocation ranges for each asset class, as well as the Portfolio&#8217;s target allocation of investments among some or all of the Underlying Funds, are summarized in the table below. Shorter-term allocations may vary from the target allocation.<br/><br/><table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="81%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td valign="bottom" width="1%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom" style="border-bottom:1px solid #4f4f4f">Asset Class</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #4f4f4f">Target&nbsp;Allocations</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>U.S. Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">50-60%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Mid Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Core</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Value</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>International/Global Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">25-35%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Equity Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP International Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Bonds</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Corporate Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP High Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Short-Term Investments</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Government Money Market</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Limited-Term Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Total Allocation</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">100%</td> <td valign="bottom">&nbsp;</td></tr> </table><br/>These allocations are projections only and may be changed by Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, from time to time. Actual allocations are not limited to the ranges shown, and ranges may vary from those shown above. IICO monitors Ivy VIP Pathfinder Aggressive&#8217;s holdings and cash flow and will periodically adjust the Portfolio&#8217;s asset allocation to realign it with the Portfolio&#8217;s risk profile and investment strategies. IICO evaluates Ivy VIP Pathfinder Aggressive&#8217;s asset allocation on an ongoing basis in view of its risk profile and strategies. This means that allocation changes will be made as needed in the view of IICO. IICO applies a long-term investment horizon with respect to Ivy VIP Pathfinder Aggressive; therefore, allocation changes may not be made in response to short-term market conditions. The Portfolio does not intend to actively trade among the Underlying Funds, nor does it intend to attempt to capture short-term market opportunities. <br/><br/>By owning shares of the Underlying Funds, the Portfolio indirectly holds a well-diversified mixture of both growth-oriented and value-oriented U.S. and international/global stocks and, to a lesser extent, a mixture of investment grade and non-investment grade corporate bonds and U.S. government securities, and money market instruments. Although the majority of the Portfolio&#8217;s indirect stock holdings are of U.S. and foreign large cap companies, the Portfolio may have potentially significant exposure to mid cap companies and small cap companies. Large cap companies typically are companies with market capitalizations of at least $10 billion. Mid cap companies typically are companies with market capitalizations that range between $1 billion and $10 billion. Small cap companies typically are companies with market capitalizations below $3.5 billion. <br/><br/>Ivy VIP Pathfinder Aggressive is intended for aggressive investors comfortable with incurring the risk associated with growth investing and investing in a high percentage of stocks, including foreign stocks, investors with long-term time horizons or investors who want to maximize long-term returns and who have a higher tolerance for possible short-term losses. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Fund of Funds Risk.</b> The ability of the Portfolio to meet its investment objective depends both on the allocation of its assets among the Underlying Funds and the ability of those funds to meet their respective investment objectives. The Portfolio&#8217;s share price will likely change daily based on the performance of the Underlying Funds in which it invests. In general, the Portfolio is subject to the same risks as those of the Underlying Funds it holds. Because the Portfolio is weighted towards Underlying Funds that invest in stocks, both U.S. and foreign, including mid cap and small cap stocks, the Portfolio is more subject to the risks associated with those investments.</li></ul><blockquote><ul type="square"><li> <b>Equity Funds Risk.</b> The Portfolio invests in equity funds, for which a principal risk is market risk, the chance that stock prices overall will decline over short or even long periods of time. This includes the risk that returns from the stock market segments in which the Portfolio is most heavily indirectly invested may underperform other asset classes, other market segments or the overall stock market. <br/>The values of certain types of stocks, such as stocks of small cap companies and foreign companies, may fluctuate more widely than others. The prices of small cap company stocks may be based, in part, on future expectations rather than current achievements. </li><li> <b>Bond Funds Risk.</b> The principal risks that may be encountered by the Portfolio&#8217;s investments in bond funds are: bond prices overall may decline when interest rates rise (interest rate risk); a bond issuer may fail to pay interest and principal in a timely manner (credit risk); and a fixed-income security issuer may repay a higher yielding bond before its maturity date, during periods of falling interest rates (reinvestment risk). Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li><li> <b>Foreign Securities Risk.</b> A portion of the Portfolio&#8217;s assets may be invested in funds with significant exposure to foreign securities, including exposure to emerging markets. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. Furthermore, because foreign securities may be denominated in foreign currencies, the value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations.</li></ul></blockquote> <ul type="square"><li> <b>Investment Company Securities Risk.</b> Investment in other investment companies typically reflects the risks of the types of securities in which the investment companies invest. When the Portfolio invests in another investment company, shareholders of the Portfolio bear their proportionate share of the other investment company&#8217;s fees and expenses as well as their share of the Portfolio&#8217;s fees and expenses, which could result in the duplication of certain fees. </li></ul><ul type="square"><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. Furthermore, IICO may alter the asset allocation of the Portfolio at its discretion. A material change in the asset allocation could affect both the level of risk and the potential for gain or loss. </li></ul><ul type="square"><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li></ul><ul type="square"><li> <b>Other Risks Applicable to a Fund of Funds Structure.</b> There are other risks associated with a Fund of Funds structure. IICO has the authority to select and replace Underlying Funds. IICO is subject to a potential conflict of interest in doing so because IICO serves as the investment manager to the Underlying Funds and the advisory fees paid by some of the Underlying Funds are higher than fees paid by other Underlying Funds. It is important to note, however, that IICO has a fiduciary duty to the Portfolio and must act in the Portfolio&#8217;s best interests.</li></ul>Additional information about the risks of the Underlying Funds is provided in the Portfolio&#8217;s prospectus in their respective sections and in the section entitled Additional Information about Principal Investment Strategies, Other Investments and Risks. <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek maximum growth of capital consistent with a more aggressive level of risk as compared to the other Ivy VIP Pathfinder Portfolios. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital consistent with a more aggressive level of risk as compared to the other Ivy VIP Pathfinder Portfolios. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year Average Annual Total Returns <br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 In the period shown in the chart, the highest quarterly return was 12.72% (the second quarter of 2009) and the lowest quarterly return was -15.01% (the third quarter of 2011). Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. highest quarterly return 2008-03-31 lowest quarterly return 2008-03-04 2008-03-04 2008-03-04 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000226 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000225 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000224 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000227 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000222 column period compact * ~</div> Ivy VIP Pathfinder Moderately Aggressive <b>Objective </b> To seek to provide growth of capital, but also to seek income consistent with a moderately aggressive level of risk as compared to the other Ivy VIP Pathfinder Portfolios. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees <br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your direct and indirect costs, combined, would be: <b>Portfolio Turnover </b> The Portfolio does not incur transaction costs, such as commissions, when it buys and sells shares of Underlying Funds that are Portfolios of the Trust (or &#8220;turns over&#8221; its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly. If the Portfolio were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual portfolio operating expenses or in the example and would affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 20% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Pathfinder Moderately Aggressive seeks to achieve its objective by allocating its assets among the asset classes below so that approximately 45-55% of the value of the Portfolio&#8217;s assets is in the U.S. stocks class, approximately 20-30% of the Portfolio&#8217;s assets is in the international/global stocks class, approximately 0-25% of the Portfolio&#8217;s assets is in the bonds class, and approximately 5-35% of the Portfolio&#8217;s assets is in the short-term investments class in an effort to manage volatility. Ivy VIP Pathfinder Moderately Aggressive implements this allocation by investing primarily in the Underlying Funds shown below. The Portfolio typically will invest in Class I shares of an Underlying Fund to the extent offered by the Underlying Fund; otherwise the Portfolio will invest in Class II shares of an Underlying Fund. The Portfolio&#8217;s currently anticipated allocation ranges for each asset class, as well as the Portfolio&#8217;s target allocation of investments among some or all of the Underlying Funds, are summarized in the table below. Shorter-term allocations may vary from the target allocation. <br/><br/><table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="81%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td valign="bottom" width="1%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom" style="border-bottom:1px solid #4f4f4f">Asset Class</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #4f4f4f">Target&nbsp;Allocations</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>U.S. Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">45-55%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Mid Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Core</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Value</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>International/Global Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">20-30%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Equity Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-30%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-30%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP International Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-30%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Bonds</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Corporate Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP High Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Short-Term Investments</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">5-35%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Government Money Market</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Limited-Term Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Total Allocation</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">100%</td> <td valign="bottom">&nbsp;</td></tr> </table><br/>These allocations are projections only and may be changed by Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, from time to time. Actual allocations are not limited to the ranges shown, and ranges may vary from those shown above. IICO monitors Ivy VIP Pathfinder Moderately Aggressive&#8217;s holdings and cash flow and will periodically adjust the Portfolio&#8217;s asset allocation to realign it with the Portfolio&#8217;s risk profile and investment strategies. IICO evaluates Ivy VIP Pathfinder Moderately Aggressive&#8217;s asset allocation on an ongoing basis in view of its risk profile and strategies. This means that allocation changes will be made as needed in the view of IICO. IICO applies a long-term investment horizon with respect to Ivy VIP Pathfinder Moderately Aggressive; therefore, allocation changes may not be made in response to short-term market conditions. The Portfolio does not intend to actively trade among the Underlying Funds, nor does it intend to attempt to capture short-term market opportunities. <br/><br/>By owning shares of the Underlying Funds, the Portfolio indirectly holds a well-diversified mixture of both growth-oriented and value-oriented U.S. and international/global stocks and, to a lesser extent, a mixture of investment grade and non-investment grade corporate bonds and U.S. government securities and money market instruments. Although the majority of the Portfolio&#8217;s indirect stock holdings are of U.S. and foreign large cap companies, the Portfolio is likely to have some exposure to mid cap and small cap companies. <br/><br/>Ivy VIP Pathfinder Moderately Aggressive is intended for investors who want to maximize returns over the long term but who have a tolerance for possible short-term losses or who are looking for some additional diversification. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Fund of Funds Risk.</b> The ability of the Portfolio to meet its investment objective depends both on the allocation of its assets among the Underlying Funds and the ability of those funds to meet their respective investment objectives. The Portfolio&#8217;s share price will likely change daily based on the performance of the Underlying Funds in which it invests. In general, the Portfolio is subject to the same risks as those of the Underlying Funds it holds. Because the Portfolio is weighted towards Underlying Funds that invest in stocks, both U.S. and foreign, including mid cap and small cap stocks, as well as bonds and short-term instruments, the Portfolio is more subject to the risks associated with those investments. </li></ul><blockquote><ul type="square"><li> <b>Equity Funds Risk.</b> The Portfolio invests in equity funds, for which a principal risk is market risk, the chance that stock prices overall will decline over short or even long periods of time. This includes the risk that returns from the stock market segments in which the Portfolio is most heavily indirectly invested may underperform other asset classes, other market segments or the overall stock market. The values of certain types of stocks, such as stocks of small cap companies and foreign companies, may fluctuate more widely than others. The prices of small cap company stocks may be based, in part, on future expectations rather than current achievements. </li><li> <b>Bond Funds Risk.</b> The principal risks that may be encountered by the Portfolio&#8217;s investments in bond funds are: bond prices overall may decline when interest rates rise (interest rate risk); a bond issuer may fail to pay interest and principal in a timely manner (credit risk); and a fixed-income security issuer may repay a higher yielding bond before its maturity date, during periods of falling interest rates (reinvestment risk). Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li><li> <b>Foreign Securities Risk.</b> A portion of the Portfolio&#8217;s assets may be invested in funds with significant exposure to foreign securities, including exposure to emerging markets. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. Furthermore, because foreign securities may be denominated in foreign currencies, the value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. </li></ul></blockquote><ul type="square"><li> <b>Investment Company Securities Risk.</b> Investment in other investment companies typically reflects the risks of the types of securities in which the investment companies invest. When the Portfolio invests in another investment company, shareholders of the Portfolio bear their proportionate share of the other investment company&#8217;s fees and expenses as well as their share of the Portfolio&#8217;s fees and expenses, which could result in the duplication of certain fees. </li></ul><ul type="square"><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. Furthermore, IICO may alter the asset allocation of the Portfolio at its discretion. A material change in the asset allocation could affect both the level of risk and the potential for gain or loss. </li></ul><ul type="square"><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li></ul><ul type="square"><li> <b>Other Risks Applicable to a Fund of Funds Structure.</b> There are other risks associated with a Fund of Funds structure. IICO has the authority to select and replace Underlying Funds. IICO is subject to a potential conflict of interest in doing so because IICO serves as the investment manager to the Underlying Funds and the advisory fees paid by some of the Underlying Funds are higher than fees paid by other Underlying Funds. It is important to note, however, that IICO has a fiduciary duty to the Portfolio and must act in the Portfolio&#8217;s best interests.</li></ul>Additional information about the risks of the Underlying Funds is provided in the Portfolio&#8217;s prospectus in their respective sections and in the section entitled Additional Information about Principal Investment Strategies, Other Investments and Risks. <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 11.31% (the second quarter of 2009) and the lowest quarterly return was -13.12% (the third quarter of 2011). Average Annual Total Returns <br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000236 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000235 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000234 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000237 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000232 column period compact * ~</div> Ivy VIP Pathfinder Moderate <b>Objective </b> To seek to provide total return consistent with a moderate level of risk as compared to the other Ivy VIP Pathfinder Portfolios. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees <br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your direct and indirect costs, combined, would be: <b>Portfolio Turnover </b> The Portfolio does not incur transaction costs, such as commissions, when it buys and sells shares of Underlying Funds that are Portfolios of the Trust (or &#8220;turns over&#8221; its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly. If the Portfolio were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual portfolio operating expenses or in the example and would affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 22% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Pathfinder Moderate seeks to achieve its objective by allocating its assets among the asset classes below so that approximately 40-50% of the value of the Portfolio&#8217;s assets is in the U.S. stocks class, approximately 15-25% of the Portfolio&#8217;s assets is in the international/global stocks class, approximately 0-35% of the Portfolio&#8217;s assets is in the bonds class, and approximately 10-45% of the Portfolio&#8217;s assets is in the short-term investments class in an effort to add income and manage volatility. Ivy VIP Pathfinder Moderate implements this allocation by investing primarily in the Underlying Funds shown below. The Portfolio typically will invest in Class I shares of an Underlying Fund to the extent offered by the Underlying Fund; otherwise the Portfolio will invest in Class II shares of an Underlying Fund. Ivy VIP Pathfinder Moderate&#8217;s currently anticipated allocation ranges for each asset class, as well as the Portfolio&#8217;s target allocation of investments among some or all of the Underlying Funds, are summarized in the table below. Shorter-term allocations may vary from the target allocation.<br/><br/> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="81%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td valign="bottom" width="1%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom" style="border-bottom:1px solid #4f4f4f">Asset Class</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #4f4f4f">Target&nbsp;Allocations</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>U.S. Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">40-50%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Mid Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Core</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Value</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>International/Global Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">15-25%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Equity Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP International Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Bonds</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Corporate Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP High Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Short-Term Investments</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">10-45%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Government Money Market</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-45%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Limited-Term Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-45%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Total Allocation</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">100%</td> <td valign="bottom">&nbsp;</td></tr> </table><br/>These allocations are projections only and may be changed by Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, from time to time. Actual allocations are not limited to the ranges shown and ranges may vary from those shown above. IICO monitors Ivy VIP Pathfinder Moderate&#8217;s holdings and cash flow and will periodically adjust the Portfolio&#8217;s asset allocation to realign it with the Portfolio&#8217;s risk profile and investment strategies. IICO evaluates Ivy VIP Pathfinder Moderate&#8217;s asset allocation on an ongoing basis in view of its risk profile and strategies. This means that allocation changes will be made as needed in the view of IICO. IICO applies a long-term investment horizon with respect to Ivy VIP Pathfinder Moderate; therefore, allocation changes may not be made in response to short-term market conditions. The Portfolio does not intend to actively trade among the Underlying Funds, nor does it intend to attempt to capture short-term market opportunities. <br/><br/>By owning shares of the Underlying Funds, the Portfolio indirectly holds a well-diversified mixture of both growth-oriented and value-oriented, primarily large cap, U.S. and, to a lesser extent, international/global stocks, as well as a mixture of investment grade and non-investment grade corporate bonds, U.S. government securities and money market instruments. <br/><br/>Ivy VIP Pathfinder Moderate is intended for investors who have a lower tolerance for risk than more aggressive investors and who are seeking both growth and income, who have a longer time horizon, or who are willing to accept moderate short-term price fluctuations in exchange for potential longer-term returns. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include: <ul type="square"><li> <b>Fund of Funds Risk.</b> The ability of the Portfolio to meet its investment objective depends both on the allocation of its assets among the Underlying Funds and the ability of those funds to meet their respective investment objectives. The Portfolio&#8217;s share price will likely change daily based on the performance of the Underlying Funds in which it invests. In general, the Portfolio is subject to the same risks as those of the Underlying Funds it holds. Because the Portfolio is weighted towards Underlying Funds that invest in stocks, both U.S. and foreign, including mid cap and small cap stocks, as well as bonds and short-term instruments, the Portfolio is more subject to the risks associated with those investments. </li></ul><blockquote><ul type="square"><li> <b>Equity Funds Risk.</b> The Portfolio invests in equity funds, for which a principal risk is market risk, the chance that stock prices overall will decline over short or even long periods of time. This includes the risk that returns from the stock market segments in which the Portfolio is most heavily indirectly invested may underperform other asset classes, other market segments or the overall stock market. The values of certain types of stocks, such as stocks of small cap companies and foreign companies, may fluctuate more widely than others. The prices of small cap company stocks may be based, in part, on future expectations rather than current achievements. </li><li> <b>Bond Funds Risk.</b> The principal risks that may be encountered by the Portfolio&#8217;s investments in bond funds are: bond prices overall may decline when interest rates rise (interest rate risk); a bond issuer may fail to pay interest and principal in a timely manner (credit risk); and a fixed-income security issuer may repay a higher yielding bond before its maturity date, during periods of falling interest rates (reinvestment risk). Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li><li> <b>Foreign Securities Risk.</b> A portion of the Portfolio&#8217;s assets may be invested in funds with significant exposure to foreign securities, including exposure to emerging markets. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. Furthermore, because foreign securities may be denominated in foreign currencies, the value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. </li></ul></blockquote><ul type="square"><li> <b>Investment Company Securities Risk.</b> Investment in other investment companies typically reflects the risks of the types of securities in which the investment companies invest. When the Portfolio invests in another investment company, shareholders of the Portfolio bear their proportionate share of the other investment company&#8217;s fees and expenses as well as their share of the Portfolio&#8217;s fees and expenses, which could result in the duplication of certain fees. </li></ul><ul type="square"><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. Furthermore, IICO may alter the asset allocation of the Portfolio at its discretion. A material change in the asset allocation could affect both the level of risk and the potential for gain or loss. </li></ul><ul type="square"><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li></ul><ul type="square"><li> <b>Other Risks Applicable to a Fund of Funds Structure.</b> There are other risks associated with a Fund of Funds structure. IICO has the authority to select and replace Underlying Funds. IICO is subject to a potential conflict of interest in doing so because IICO serves as the investment manager to the Underlying Funds and the advisory fees paid by some of the Underlying Funds are higher than fees paid by other Underlying Funds. It is important to note, however, that IICO has a fiduciary duty to the Portfolio and must act in the Portfolio&#8217;s best interests.</li></ul>Additional information about the risks of the Underlying Funds is provided in the Portfolio&#8217;s prospectus in their respective sections and in the section entitled Additional Information about Principal Investment Strategies, Other Investments and Risks. <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek a high level of total return consistent with a moderate level of risk as compared to the other Ivy VIP Pathfinder Portfolios. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide total return consistent with a moderate level of risk as compared to the other Ivy VIP Pathfinder Portfolios. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns <br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 9.62% (the third quarter of 2009) and the lowest quarterly return was -10.70% (the third quarter of 2011). Average Annual Total Returns <br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 2008-03-04 highest quarterly return 2009-06-30 lowest quarterly return highest quarterly return 2009-06-30 lowest quarterly return 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2008-03-04 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000246 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000245 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000244 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000247 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000242 column period compact * ~</div> Ivy VIP Pathfinder Moderately Conservative <b>Objective </b> To seek to provide total return consistent with a moderately conservative level of risk as compared to the other Ivy VIP Pathfinder Portfolios. <b>Fees and Expenses </b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your direct and indirect costs, combined, would be: <b>Portfolio Turnover </b> The Portfolio does not incur transaction costs, such as commissions, when it buys and sells shares of Underlying Funds that are Portfolios of the Trust (or &#8220;turns over&#8221; its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly. If the Portfolio were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual portfolio operating expenses or in the example and would affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 24% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Pathfinder Moderately Conservative seeks to achieve its objective by allocating its assets among the asset classes below so that approximately 0-35% of the value of the Portfolio&#8217;s assets is in the bonds class, approximately 35-45% of the Portfolio&#8217;s assets is in the U.S. stocks class, approximately 15-55% of the Portfolio&#8217;s assets is in the short-term investments class, and approximately 10-20% of the Portfolio&#8217;s assets is in the international/global stocks class. The Portfolio&#8217;s allocation is principally weighted towards bond investments and short-term investments while including stock investments for long-term growth. Ivy VIP Pathfinder Moderately Conservative implements this allocation by investing primarily in the Underlying Funds shown below. The Portfolio typically will invest in Class I shares of an Underlying Fund to the extent offered by the Underlying Fund; otherwise the Portfolio will invest in Class II shares of an Underlying Fund. The Portfolio&#8217;s currently anticipated allocation ranges for each asset class, as well as the Portfolio&#8217;s target allocation of investments among some or all of the Underlying Funds, are summarized in the table below. Shorter-term allocations may vary from the target allocation. <br/><br/><table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="1%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom" style="border-bottom:1px solid #4f4f4f">Asset Class</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #4f4f4f">Target&nbsp;Allocations</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>U.S. Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">35-45%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Mid Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Core</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Value</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>International/Global Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">10-20%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Equity Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP International Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Bonds</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Corporate Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-35%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP High Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-5%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Short-Term Investments</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">15-55%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Government Money Market</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-55%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Limited-Term Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-55%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Total Allocation</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">100%</td> <td valign="bottom">&nbsp;</td></tr> </table> <br/>These allocations are projections only and may be changed by Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, from time to time. Actual allocations are not limited to the ranges shown and ranges may vary from those shown above. IICO monitors Ivy VIP Pathfinder Moderately Conservative&#8217;s holdings and cash flow and will periodically adjust the Portfolio&#8217;s asset allocation to realign it with the Portfolio&#8217;s risk profile and investment strategies. IICO evaluates Ivy VIP Pathfinder Moderately Conservative&#8217;s asset allocation on an ongoing basis in view of its risk profile and strategies. This means that allocation changes will be made as needed in the view of IICO. IICO applies a long-term investment horizon with respect to Ivy VIP Pathfinder Moderately Conservative; therefore, allocation changes may not be made in response to short-term market conditions. The Portfolio does not intend to actively trade among the Underlying Funds, nor does it intend to attempt to capture short-term market opportunities.<br/><br/>By owning shares of the Underlying Funds, the Portfolio indirectly holds a diversified mixture of stocks of U.S. and, to a lesser extent, international/global stocks that typically are large cap; the Portfolio also indirectly holds a mixture of investment grade corporate bonds, U.S. government securities and, to a lesser extent, a mixture of non-investment grade corporate bonds and money market instruments.<br/><br/>Ivy VIP Pathfinder Moderately Conservative is intended for investors who have a lower tolerance for risk and whose primary goal is income, who have a shorter time horizon or who are willing to accept some amount of market volatility in exchange for greater potential income and growth. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment.<br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li> <b>Fund of Funds Risk.</b> The ability of the Portfolio to meet its investment objective depends both on the allocation of its assets among the Underlying Funds and the ability of those funds to meet their respective investment objectives. The Portfolio&#8217;s share price will likely change daily based on the performance of the Underlying Funds in which it invests. In general, the Portfolio is subject to the same risks as those of the Underlying Funds it holds. Because the Portfolio is weighted towards Underlying Funds that invest in stocks, both U.S. and foreign, including mid cap and small cap stocks, as well as bonds and short-term instruments, the Portfolio is more subject to the risks associated with those investments.</li></ul><blockquote><ul type="square"><li> <b>Equity Funds Risk.</b> The Portfolio invests in equity funds, for which a principal risk is market risk, the chance that stock prices overall will decline over short or even long periods of time. This includes the risk that returns from the stock market segments in which the Portfolio is most heavily indirectly invested may underperform other asset classes, other market segments or the overall stock market.<br/>The values of certain types of stocks, such as stocks of small cap companies and foreign companies, may fluctuate more widely than others. The prices of small cap company stocks may be based, in part, on future expectations rather than current achievements.</li><li> <b>Bond Funds Risk. </b>The principal risks that may be encountered by the Portfolio&#8217;s investments in bond funds are: bond prices overall may decline when interest rates rise (interest rate risk); a bond issuer may fail to pay interest and principal in a timely manner (credit risk); and a fixed-income security issuer may repay a higher yielding bond before its maturity date, during periods of falling interest rates (reinvestment risk). Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally.</li><li> <b>Foreign Securities Risk.</b> A portion of the Portfolio&#8217;s assets may be invested in funds with significant exposure to foreign securities, including exposure to emerging markets. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. Furthermore, because foreign securities may be denominated in foreign currencies, the value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations.</li></ul></blockquote><ul type="square"><li> <b>Investment Company Securities Risk.</b> Investment in other investment companies typically reflects the risks of the types of securities in which the investment companies invest. When the Portfolio invests in another investment company, shareholders of the Portfolio bear their proportionate share of the other investment company&#8217;s fees and expenses as well as their share of the Portfolio&#8217;s fees and expenses, which could result in the duplication of certain fees. </li></ul><ul type="square"><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. Furthermore, IICO may alter the asset allocation of the Portfolio at its discretion. A material change in the asset allocation could affect both the level of risk and the potential for gain or loss.</li></ul><ul type="square"><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.</li></ul><ul type="square"><li> <b>Other Risks Applicable to a Fund of Funds Structure.</b> There are other risks associated with a Fund of Funds structure. IICO has the authority to select and replace Underlying Funds. IICO is subject to a potential conflict of interest in doing so because IICO serves as the investment manager to the Underlying Funds and the advisory fees paid by some of the Underlying Funds are higher than fees paid by other Underlying Funds. It is important to note, however, that IICO has a fiduciary duty to the Portfolio and must act in the Portfolio&#8217;s best interests.</li></ul>Additional information about the risks of the Underlying Funds is provided in the Portfolio&#8217;s prospectus in their respective sections and in the section entitled Additional Information about Principal Investment Strategies, Other Investments and Risks. <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.<br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek a high level of total return consistent with a moderately conservative level of risk as compared to the other Ivy VIP Pathfinder Portfolios. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide total return consistent with a moderately conservative level of risk as compared to the other Ivy VIP Pathfinder Portfolios.<br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 8.25% (the third quarter of 2009) and the lowest quarterly return was -8.47% (the third quarter of 2011). Average Annual Total Returns<br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. highest quarterly return 2009-09-30 lowest quarterly return 2008-03-12 2008-03-12 2008-03-12 2008-03-12 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000256 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000255 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000254 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000257 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000252 column period compact * ~</div> Ivy VIP Pathfinder Conservative <b>Objective </b> To seek to provide total return consistent with a conservative level of risk as compared to the other Ivy VIP Pathfinder Portfolios. <b>Fees and Expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/> (fees paid directly from your investment) Annual Portfolio Operating Expenses <br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies. <br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your direct and indirect costs, combined, would be: <b>Portfolio Turnover </b> The Portfolio does not incur transaction costs, such as commissions, when it buys and sells shares of Underlying Funds that are Portfolios of the Trust (or &#8220;turns over&#8221; its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly. If the Portfolio were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual portfolio operating expenses or in the example and would affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 30% of the average value of its portfolio. <b>Principal Investment Strategies </b> Ivy VIP Pathfinder Conservative seeks to achieve its objective by allocating its assets among the asset classes below so that approximately 20-65% of the value of the Portfolio&#8217;s assets is in the short-term investments class, approximately 0-40% of the Portfolio&#8217;s assets is in the bonds class, approximately 30-40% of the Portfolio&#8217;s assets is in the U.S. stocks class (with stocks of various capitalization levels, but primarily large cap stocks), and approximately 5-15% of the Portfolio&#8217;s assets is in the international/global stocks class. The Portfolio&#8217;s allocation primarily focuses on bonds and short-term investments while including stock investments for long-term growth. Ivy VIP Pathfinder Conservative implements this allocation by investing primarily in the Underlying Funds shown below. The Portfolio typically will invest in Class I shares of an Underlying Fund to the extent offered by the Underlying Fund; otherwise the Portfolio will invest in Class II shares of an Underlying Fund. The Portfolio&#8217;s currently anticipated allocation ranges for each asset class, as well as the Portfolio&#8217;s target allocation of investments among some or all of the Underlying Funds, are summarized in the table below. Shorter-term allocations may vary from the target allocation. <br/><br/><table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="84%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="1%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom" style="border-bottom:1px solid #4f4f4f">Asset Class</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;&nbsp;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #4f4f4f">Target&nbsp;Allocations</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>U.S. Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">30-40%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Growth</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Mid Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Core</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Value</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>International/Global Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">5-15%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Equity Income</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Growth</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP International Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Bonds</b></div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-40%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Corporate Bond</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-40%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Bond</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP High Income</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-5%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Short-Term Investments</b></div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">20-65%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Government Money Market</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-65%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Limited-Term Bond</div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-65%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Total Allocation</b></div></td> <td valign="bottom">&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">100%</td> <td valign="bottom">&nbsp;</td></tr> </table> <br/>These allocations are projections only and may be changed by Ivy Investment Management Company (IICO), the Portfolio&#8217;s investment manager, from time to time. Actual allocations are not limited to the ranges shown and ranges may vary from those shown above. IICO monitors Ivy VIP Pathfinder Conservative&#8217;s holdings and cash flow and will periodically adjust the Portfolio&#8217;s asset allocation to realign it with the Portfolio&#8217;s risk profile and investment strategies. IICO evaluates Ivy VIP Pathfinder Conservative&#8217;s asset allocation on an ongoing basis in view of its risk profile and strategies. This means that allocation changes will be made as needed in the view of IICO. IICO applies a long-term investment horizon with respect to Ivy VIP Pathfinder Conservative; therefore, allocation changes may not be made in response to short-term market conditions. The Portfolio does not intend to actively trade among the Underlying Funds, nor does it intend to attempt to capture short-term market opportunities. <br/><br/>By owning shares of the Underlying Funds, the Portfolio indirectly holds a diversified mixture of money market instruments, investment-grade corporate bonds, U.S. government securities, and, to a lesser extent, stocks of primarily large cap companies. <br/><br/>Ivy VIP Pathfinder Conservative is intended for investors who have a low tolerance for risk and whose primary goal is income, or who have a short time horizon. <b>Principal Investment Risks </b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. <br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li> <b>Fund of Funds Risk.</b> The ability of the Portfolio to meet its investment objective depends both on the allocation of its assets among the Underlying Funds and the ability of those funds to meet their respective investment objectives. The Portfolio&#8217;s share price will likely change daily based on the performance of the Underlying Funds in which it invests. In general, the Portfolio is subject to the same risks as those of the Underlying Funds it holds. Because the Portfolio is weighted towards Underlying Funds that invest in bonds and short-term instruments, as well as, to a lesser extent, stocks, both U.S. and foreign, the Portfolio is more subject to the risks associated with those investments. </li></ul><blockquote><ul type="square"><li> <b>Equity Funds Risk.</b> The Portfolio invests in equity funds, for which a principal risk is market risk, the chance that stock prices overall will decline over short or even long periods of time. This includes the risk that returns from the stock market segments in which the Portfolio is most heavily indirectly invested may underperform other asset classes, other market segments or the overall stock market. The values of certain types of stocks, such as stocks of small cap companies and foreign companies, may fluctuate more widely than others. The prices of small cap company stocks may be based, in part, on future expectations rather than current achievements. </li><li> <b>Bond Funds Risk.</b> The principal risks that may be encountered by the Portfolio&#8217;s investments in bond funds are: bond prices overall may decline when interest rates rise (interest rate risk); a bond issuer may fail to pay interest and principal in a timely manner (credit risk); and a fixed-income security issuer may repay a higher yielding bond before its maturity date, during periods of falling interest rates (reinvestment risk). Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally. </li><li> <b>Foreign Securities Risk.</b> A portion of the Portfolio&#8217;s assets may be invested in funds with significant exposure to foreign securities, including exposure to emerging markets. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. Furthermore, because foreign securities may be denominated in foreign currencies, the value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. </li></ul></blockquote> <ul type="square"><li><b>Investment Company Securities Risk.</b> Investment in other investment companies typically reflects the risks of the types of securities in which the investment companies invest. When the Portfolio invests in another investment company, shareholders of the Portfolio bear their proportionate share of the other investment company&#8217;s fees and expenses as well as their share of the Portfolio&#8217;s fees and expenses, which could result in the duplication of certain fees. </li></ul> <ul type="square"><li> <b>Management Risk.</b> Portfolio performance is primarily dependent on IICO&#8217;s skill in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. Furthermore, IICO may alter the asset allocation of the Portfolio at its discretion. A material change in the asset allocation could affect both the level of risk and the potential for gain or loss. </li></ul> <ul type="square"><li> <b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. </li></ul> <ul type="square"><li> <b>Other Risks Applicable to a Fund of Funds Structure.</b> There are other risks associated with a Fund of Funds structure. IICO has the authority to select and replace Underlying Funds. IICO is subject to a potential conflict of interest in doing so because IICO serves as the investment manager to the Underlying Funds and the advisory fees paid by some of the Underlying Funds are higher than fees paid by other Underlying Funds. It is important to note, however, that IICO has a fiduciary duty to the Portfolio and must act in the Portfolio&#8217;s best interests.</li></ul>Additional information about the risks of the Underlying Funds is provided in the Portfolio&#8217;s prospectus in their respective sections and in the section entitled Additional Information about Principal Investment Strategies, Other Investments and Risks. <b>Performance </b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. <br/><br/>Prior to April 30, 2012, the Portfolio&#8217;s investment objective was to seek a high level of total return consistent with a conservative level of risk as compared to the other Ivy VIP Pathfinder Portfolios. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide total return consistent with a conservative level of risk as compared to the other Ivy VIP Pathfinder Portfolios. <br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 6.75% (the third quarter of 2009) and the lowest quarterly return was -6.56% (the third quarter of 2011). Average Annual Total Returns<br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class&nbsp;II shares of the Portfolio. The table shows the average annual total returns for Class&nbsp;II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. 800.777.6472 Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. 2008-03-12 2008-03-12 2008-03-12 2008-03-12 2008-03-12 highest quarterly return 2009-09-30 lowest quarterly return 2008-03-13 2008-03-13 2008-03-13 2008-03-13 2008-03-13 2008-03-13 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsBarChart000266 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposed000265 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposed000264 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposed000267 column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFees000262 column period compact * ~</div> Ivy VIP Pathfinder Moderate &#8212; Managed Volatility <b>Objective</b> To seek to provide total return consistent with a moderate level of risk as compared to the other Ivy VIP Pathfinder Managed Volatility Portfolios, while seeking to manage volatility of investment return. <b>Fees and Expenses</b> This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses. Shareholder Fees<br/><br/>(fees paid directly from your investment) Annual Portfolio Operating Expenses<br/><br/>(expenses that you pay each year as a % of the value of your investment) <b>Example</b> This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies.<br/><br/>The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio&#8217;s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your direct and indirect costs, combined, would be: <b>Portfolio Turnover</b> The Portfolio does not incur transaction costs, such as commissions, when it buys and sells shares of Underlying Funds that are Portfolios of the Trust (or &#8220;turns over&#8221; its portfolio), but it could incur transaction costs if it were to buy and sell other types of securities directly (including, but not limited to, derivative securities described below). If the Portfolio were to buy and sell other types of securities directly, a higher portfolio turnover rate could indicate higher transaction costs. Such costs, if incurred, would not be reflected in annual portfolio operating expenses or in the example and would affect the Portfolio&#8217;s performance. During the most recent fiscal year, the Portfolio&#8217;s portfolio turnover rate was 21% of the average value of its portfolio. <b>Principal Investment Strategies</b> Ivy VIP Pathfinder Moderate &#8212; Managed Volatility seeks to achieve its objective by investing primarily in various Underlying Funds and by utilizing a volatility management strategy that is intended to manage volatility of the Portfolio&#8217;s equity returns. The Portfolio&#8217;s investment manager, Ivy Investment Management Company (IICO), manages the Portfolio&#8217;s investments in the Underlying Funds and other assets that are not part of the volatility management strategy. An investment subadviser, Securian Asset Management, Inc. (Securian), manages the volatility management strategy of the Portfolio.<br/><br/>Under normal circumstances, IICO allocates approximately 90-95% of the Portfolio&#8217;s assets among the asset classes below so that approximately 35-50% of the value of this portion of the Portfolio&#8217;s assets is in the U.S. stocks class, approximately 10-25% of this portion of the Portfolio&#8217;s assets is in the international/global stocks class, approximately 0-45% of this portion of the Portfolio&#8217;s assets is in the bonds class, and approximately 10-45% of this portion of the Portfolio&#8217;s assets is in the short-term investments class. Ivy VIP Pathfinder Moderate &#8212; Managed Volatility implements this allocation by investing primarily in the Underlying Funds shown below. The Portfolio typically will invest in Class I shares of an Underlying Fund to the extent offered by the Underlying Fund; otherwise the Portfolio will invest in Class II shares of an Underlying Fund.<br/><br/>Ivy VIP Pathfinder Moderate &#8212; Managed Volatility allocates its remaining assets to a volatility management strategy that is intended to manage the volatility of the Portfolio&#8217;s equity returns in an attempt to stabilize the equity returns of the Portfolio. Securian does not intend to attempt to manage the volatility of the Portfolio&#8217;s fixed-income returns. The investment subadviser, Securian, executes this volatility management strategy by increasing or reducing, through the use of exchange-traded futures contracts on certain equity indexes, the Portfolio&#8217;s exposure to equity assets. For example, when the recent historical volatility of the equity portion of the Portfolio is relatively high, Securian will seek to reduce the Portfolio&#8217;s exposure to equity assets by either selling exchange-traded futures contracts (taking short positions in such contracts) or reducing its long positions in exchange-traded futures contracts. When the recent historical volatility of the equity portion of the Portfolio is relatively low, Securian will seek to increase the Portfolio&#8217;s exposure to equity assets by either purchasing exchange-traded futures contracts (taking long positions in such contracts) or reducing its short positions in exchange-traded futures contracts. Volatility is a statistical measurement of the magnitude of fluctuations in the value of a financial instrument or index over time. Volatility may result in rapid and dramatic price swings.<br/><br/>The amount of Portfolio assets allocated to the volatility management strategy typically will, under normal circumstances, range between 5-10% of the market value of the Portfolio&#8217;s assets, which will consist primarily of assets maintained as margin for those futures contracts and also may include cash held for use in the strategy. Shorter-term allocations may vary from this 5-10% range. In order to maintain its derivatives positions in the volatility management strategy, IICO may, from time to time, sell certain Portfolio assets, which may include redemption of shares of Underlying Funds.<br/><br/>The use of exchange-traded futures contracts may have the effect of introducing leverage into the Portfolio, since the amount required to enter into such contracts is small in relation to the investment exposure of such contracts. Although the amount of the Portfolio&#8217;s assets allocated to the volatility management strategy typically will range between 5-10%, the volatility management strategy may seek to increase or decrease the Portfolio&#8217;s exposure to equity assets by a substantial amount when the recent historical volatility in the equity portion of the Portfolio is relatively high or low and create investment exposure greater than the amount of assets used to implement the strategy. However, the Portfolio&#8217;s effective exposure to equity assets with exchange-traded futures contracts from the volatility management strategy typically will not exceed the maximum equity allocation shown below or decrease the Portfolio&#8217;s effective exposure to equity assets below 10% of the Portfolio&#8217;s assets.<br/><br/><b>Investment Process for Investments in Underlying Funds</b><br/><br/>Ivy VIP Pathfinder Moderate &#8212; Managed Volatility&#8217;s currently anticipated allocation ranges for each asset class, as well as the Portfolio&#8217;s target allocation of investments among some or all of the Underlying Funds, are summarized in the table below. Shorter-term allocations may vary from the target allocation.<br/><br/><table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="1%"></td></tr> <tr style="page-break-inside:avoid"> <td valign="bottom" style="border-bottom:1px solid #4f4f4f">Asset Class</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #4f4f4f">Target&nbsp;Allocations</td> <td valign="bottom" style=" border-bottom:1px solid #4f4f4f">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>U.S. Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">35-50%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Mid Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Core</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Small Cap Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Value</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-20%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>International/Global Stocks</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">10-25%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Equity Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Growth</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP International Core Equity</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-25%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Bonds</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-45%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Corporate Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-45%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Global Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-15%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP High Income</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-10%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Short-Term Investments</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">10-45%</td> <td valign="bottom">&nbsp;</td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Government Money Market</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-45%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:2.00em; text-indent:-1.00em">Ivy VIP Limited-Term Bond</div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">0-45%</td> <td valign="bottom">&nbsp;</td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td></tr> <tr style="page-break-inside:avoid"> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><b>Total Allocation</b></div></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&nbsp;&nbsp;&nbsp;&nbsp;</td> <td valign="bottom">&nbsp;</td> <td valign="bottom" align="right">100%</td> <td valign="bottom">&nbsp;</td></tr> </table><br/>These allocations in the Underlying Funds are projections only and may be changed by IICO from time to time. Actual allocations in the Underlying Funds are not limited to the ranges shown, and ranges may vary from those shown above. IICO monitors Ivy VIP Pathfinder Moderate &#8212; Managed Volatility&#8217;s holdings and cash flow and will periodically adjust the Portfolio&#8217;s asset allocation in the Underlying Funds to realign it with the Portfolio&#8217;s risk profile and investment strategies. IICO evaluates Ivy VIP Pathfinder Moderate &#8212; Managed Volatility&#8217;s asset allocation in the Underlying Funds on an ongoing basis in view of its risk profile and strategies. This means that allocation changes in the Underlying Funds will be made as needed in the view of IICO. IICO applies a long-term investment horizon with respect to Ivy VIP Pathfinder Moderate &#8212; Managed Volatility; therefore, allocation changes in the Underlying Funds may not be made in response to short-term market conditions. The Portfolio does not intend to actively trade among the Underlying Funds, nor does it intend to attempt to capture short-term market opportunities.<br/><br/>By owning shares of the Underlying Funds, the Portfolio indirectly holds a well-diversified mixture of both growth-oriented and value-oriented, primarily large cap, U.S. and, to a lesser extent, international/global stocks, as well as a mixture of investment grade and non-investment grade corporate bonds, U.S. government securities and money market instruments.<br/><br/>Ivy VIP Pathfinder Moderate &#8212; Managed Volatility is intended for investors who have a lower tolerance for risk than more aggressive investors but seek to manage the volatility of their investment and who are seeking both growth and income, who have a longer time horizon, or who are willing to accept moderate short-term price fluctuations in exchange for potential longer-term returns. <b>Principal Investment Risks</b> As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment.<br/><br/>A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:<ul type="square"><li> <b>Derivatives Risk.</b> The use of derivatives presents several risks, including the risk that these instruments may change in value in a manner that adversely affects the Portfolio&#8217;s net asset value (NAV) and the risk that fluctuations in the value of the derivatives may not correlate with the reference instrument underlying the derivative. Derivatives can be highly complex, can create investment leverage, may perform in unanticipated ways and may be highly volatile, and the Portfolio could lose more than the amount it invests. Derivatives may be difficult to value and may at times be highly illiquid, and the Portfolio may not be able to close out or sell a derivative position at a particular time or at an anticipated price. Moreover, some derivatives are more sensitive to interest rate changes and market price fluctuations than others. To the extent the judgment of Securian as to certain anticipated price movements is incorrect, the risk of loss may be greater than if the derivative technique(s) had not been used. When used for hedging, the change in value of the derivative also may not correlate perfectly with the security or other risk being hedged. Suitable derivatives may not be available in all circumstances, and there can be no assurance that the Portfolio will use derivatives to reduce exposure to other risks when that might be beneficial. Derivatives also may be subject to counterparty credit risk, which includes the risk that the Portfolio may sustain a loss as a result of the insolvency or bankruptcy of, or other non-compliance by, another party to the transaction. When the Portfolio uses derivatives, it likely will be required to provide margin or collateral and/or segregate cash or other liquid assets in a manner that satisfies contractual undertakings and regulatory requirements. The need to provide margin or collateral and/or segregate assets could limit the Portfolio&#8217;s ability to pursue other opportunities as they arise. Ongoing changes to regulation of the derivatives markets and potential changes in the regulation of funds using derivatives instruments could limit the Portfolio&#8217;s ability to pursue its investment strategies.</li><li><b>Fund of Funds Risk.</b> The ability of the Portfolio to meet its investment objective depends both on the allocation of its assets among the Underlying Funds and the ability of those funds to meet their respective investment objectives. The Portfolio&#8217;s share price will likely change daily based on the performance of the Underlying Funds in which it invests. In general, the Portfolio is subject to the same risks as those of the Underlying Funds it holds. Because the Portfolio is weighted towards Underlying Funds that invest in stocks, both U.S. and foreign, including mid cap and small cap stocks, as well as bonds and short-term instruments, the Portfolio is more subject to the risks associated with those investments.</li></ul><blockquote><ul type="square"><li><b>Equity Funds Risk.</b> The Portfolio invests in equity funds, for which a principal risk is market risk, the chance that stock prices overall will decline over short or even long periods of time. This includes the risk that returns from the stock market segments in which the Portfolio is most heavily indirectly invested may underperform other asset classes, other market segments or the overall stock market. The values of certain types of stocks, such as stocks of small cap companies and foreign companies, may fluctuate more widely than others. The prices of small cap company stocks may be based, in part, on future expectations rather than current achievements.</li><li><b>Bond Funds Risk.</b> The principal risks that may be encountered by the Portfolio&#8217;s investments in bond funds are: bond prices overall may decline when interest rates rise (interest rate risk); a bond issuer may fail to pay interest and principal in a timely manner (credit risk); and a fixed-income security issuer may repay a higher yielding bond before its maturity date, during periods of falling interest rates (reinvestment risk). Interest rates in the U.S. are at, or near, historic lows, which may increase the Portfolio&#8217;s exposure to risks associated with rising rates. In addition, a general rise in rates may result in decreased liquidity and increased volatility in the fixed-income markets generally.</li><li><b>Foreign Securities Risk.</b> A portion of the Portfolio&#8217;s assets may be invested in funds with significant exposure to foreign securities, including exposure to emerging markets. Investing in foreign securities involves a number of economic, financial, legal and political considerations that are not associated with the U.S. markets and that could affect the Portfolio&#8217;s performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; social, political or economic instability; fluctuations in foreign currency exchange rates and related conversion costs or currency redenomination; nationalization or expropriation of assets; adverse foreign tax consequences; different and/or less stringent financial reporting standards; and settlement, custodial or other operational delays. World markets, or those in a particular region, all may react in similar fashion to important economic or political developments. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. Securities of issuers traded on exchanges may be suspended, either by the issuers themselves, by an exchange or by governmental authorities. The likelihood of such suspensions may be higher for securities of issuers in emerging markets than in more developed markets. In the event that the Portfolio holds material positions in such suspended securities, the Portfolio&#8217;s ability to liquidate its positions or provide liquidity to investors may be compromised and the Portfolio could incur significant losses. Sovereign debt instruments also are subject to the risk that a government or agency issuing the debt may be unable to pay interest and/or repay principal due to cash flow problems, insufficient foreign currency reserves or political concerns. In such instance, the Portfolio may have limited recourse against the issuing government or agency. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristics of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. Emerging markets are more susceptible to capital controls, governmental interference, local taxes being imposed on international investments, restrictions on gaining access to sales proceeds, and less efficient trading markets. Furthermore, because foreign securities may be denominated in foreign currencies, the value of the Portfolio&#8217;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations.</li></ul></blockquote><ul type="square"><li><b>Investment Company Securities Risk.</b> Investment in other investment companies typically reflects the risks of the types of securities in which the investment companies invest. When the Portfolio invests in another investment company, shareholders of the Portfolio bear their proportionate share of the other investment company&#8217;s fees and expenses as well as their share of the Portfolio&#8217;s fees and expenses, which could result in the duplication of certain fees.</li><li><b>Leveraging Risk.</b> The risk that certain transactions of the Portfolio, such as transactions in derivative instruments, may give rise to leverage, causing the Portfolio to be more volatile than if it had not been leveraged and can result in losses to the Portfolio that exceed the amount originally invested. Because of leverage, the Portfolio&#8217;s investment exposure may exceed the Portfolio&#8217;s net assets.</li><li><b>Managed Volatility Strategy Risk.</b> Securian may be unsuccessful in managing volatility, and there is a risk that the Portfolio may experience a high level of volatility in its returns. The Portfolio&#8217;s holdings are subject to price volatility, and the Portfolio may not be any less volatile than the market as a whole and could be more volatile. In addition, there can be no guarantee that the Portfolio will achieve its goal of managing the volatility of its equity returns. Furthermore, while the management of volatility seeks competitive returns with more consistent volatility, the management of volatility does not ensure that the Portfolio will deliver competitive returns. Additionally, even if successful, the Portfolio&#8217;s management of volatility also may generally result in the Portfolio&#8217;s NAV increasing to a lesser degree than the markets (for example, in a rising market with relatively high volatility) or decreasing to a greater degree than the market (for example, in a declining market with relatively low volatility). The Portfolio&#8217;s managed volatility strategy may expose the Portfolio to losses (some of which may be sudden) to which it would not have otherwise been exposed if it invested only in Underlying Funds. Additionally, the derivatives used by Securian to hedge the value of the Portfolio are not identical to the Underlying Funds, and as a result, the Portfolio&#8217;s investment in derivatives may decline in value at the same time as the Portfolio&#8217;s investment in Underlying Funds. Securian does not intend to attempt to manage the volatility of the Portfolio&#8217;s fixed-income returns. It is possible that the fixed-income portion of the Portfolio, whose volatility would not be managed by the volatility management strategy, could become more volatile than the equity portion of the Portfolio.</li><li><b>Management Risk.</b> Portfolio performance is primarily dependent on the skill of IICO and/or Securian in evaluating and managing the Portfolio&#8217;s holdings. There can be no guarantee that their decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds. Furthermore, IICO may alter the asset allocation of the Portfolio among the Underlying Funds at its discretion. A material change in such asset allocation could affect both the level of risk and the potential for gain or loss.</li><li><b>Market Risk.</b> Markets can be volatile, and the Portfolio&#8217;s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.</li><li><b>Other Risks Applicable to a Fund of Funds Structure.</b> There are other risks associated with a Fund of Funds structure. IICO has the authority to select and replace Underlying Funds. IICO is subject to a potential conflict of interest in doing so because IICO serves as the investment manager to the Underlying Funds and the advisory fees paid by some of the Underlying Funds are higher than fees paid by other Underlying Funds. It is important to note, however, that IICO has a fiduciary duty to the Portfolio and must act in the Portfolio&#8217;s best interests.</li></ul>Additional information about the risks of the Underlying Funds is provided in the Portfolio&#8217;s prospectus in their respective sections and in the section entitled Additional Information about Principal Investment Strategies, Other Investments and Risks. <b>Performance</b> The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.<br/><br/>The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio&#8217;s updated performance. Chart of Year-by-Year Returns<br/>as of December 31 each year In the period shown in the chart, the highest quarterly return was 4.23% (the first quarter of 2017) and the lowest quarterly return was -5.23% (the third quarter of 2015). Average Annual Total Returns<br/><br/>as of December 31, 2017 The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. As with any mutual fund, the value of the Portfolio&#8217;s shares will change, and you could lose money on your investment. The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio&#8217;s returns with those of various broad-based securities market indexes. 800.777.6472 The Portfolio&#8217;s past performance does not necessarily indicate how it will perform in the future. The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. 2008-03-13 2008-03-13 highest quarterly return 2009-09-30 lowest quarterly return 114 356 617 1363 114 356 617 1363 124 387 670 1477 124 387 670 1477 617 1363 114 356 617 1363 114 356 88 274 477 1061 88 274 477 1061 92 287 498 1108 92 287 498 1108 96 300 520 1155 96 300 520 1155 101 315 547 1213 101 315 547 1213 111 347 601 1329 111 347 601 1329 41 128 224 505 41 128 224 505 124 406 710 1571 124 406 710 1571 92 287 498 1108 117 365 633 1398 92 287 498 1108 117 365 633 1398 123 384 665 1466 123 384 665 1466 96 300 520 1155 121 378 654 1443 96 300 520 1155 121 378 654 1443 118 368 638 1409 118 368 638 1409 103 322 558 1236 103 322 558 1236 78 243 422 942 103 322 558 1236 78 243 422 942 103 322 558 1236 115 368 640 1417 115 368 640 1417 102 318 552 1225 102 318 552 1225 82 255 444 990 82 255 444 990 67 211 368 822 93 290 504 1120 67 211 368 822 93 290 504 1120 114 356 617 1363 114 356 617 1363 80 249 433 966 80 249 433 966 116 369 641 1418 116 369 641 1418 102 318 552 1225 102 318 552 1225 117 365 633 1398 117 365 633 1398 87 280 489 1092 112 360 628 1393 87 280 489 1092 112 360 628 1393 109 340 590 1306 134 418 723 1590 109 340 590 1306 134 418 723 1590 97 313 548 1220 97 313 548 1220 101 315 547 1213 101 315 547 1213 0.002 0 0.0007 0.0095 0.0122 0.0375 -0.0043 0.0181 0.138 0.138 0.0587 0.2503 0.0675 0.0409 0.0329 0.2113 0.1297 0.1535 0.082 0.0391 -0.0071 0.0236 0.157 0.157 0.0654 0.0081 0.0026 0.0354 0.0292 0.2183 0.1335 0.0127 0.0128 0.002 0 0.0007 0.0085 0.0112 0.1184 0.0487 0.19 0.0081 0.0026 0.0354 0.0292 0.2183 0.1335 0.0127 0.0128 0.0409 0.0329 0.2503 0.0675 0.2113 0.1297 0.1746 0.0896 -0.0523 0.0423 0.21 0.1672 0.1746 0.2113 0.2503 0.0409 0.0127 0.2183 0.0354 0.0081 0.0959 0.1033 0.1558 0.079 0.025 0.011 0.1579 0.021 0.0023 0.0666 0.0689 0.098 0.0303 0.0426 0.022 0.097 0.039 0.0029 0.0369 0.26 0.0081 0.0026 0.0354 0.0292 0.0306 -0.0052 0.0121 0.1184 0.2183 0.1335 0.2503 0.0675 0.0127 0.0128 0.0409 0.0329 0.2113 0.1297 0.1328 0.0744 -0.0626 0.0487 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -0.043 0.0103 0.007 0.0025 0.0005 0.01 -0.0005 0.0095 0.007 0.0025 0.0004 0.0099 -0.3627 0.2707 0.1258 0.0212 0.1275 0.3646 0.1181 0.0717 0.0122 0.2934 0.2934 0.1644 0.0843 0.3021 0.1733 0.1 0.3086 0.1629 0.0873 0.41 0.2075 0.1274 0.0795 0.2183 0.1579 0.085 0.2071 0.1455 0.0752 0.78 -0.3477 0.2402 0.2089 0.0166 0.186 0.3351 0.0968 -0.0069 0.0374 0.2075 0.0095 0.0095 0 0.0025 0.0012 0.0012 0.0107 0.0132 -0.4804 0.4129 0.4085 -0.0701 0.1184 0.5728 -0.0174 -0.0916 0.1329 0.0883 0.0883 0.116 0.0641 0.2217 0.1521 0.0919 0.1665 0.1382 0.0723 0.2434 0.144 0.0869 0.37 0.0085 0.0085 0 0.0025 0.0004 0.0005 0.0089 0.0115 -0.0004 -0.0005 0.0085 0.011 -0.3623 0.4666 0.3156 -0.0056 0.1356 0.2994 0.0787 -0.0578 0.0612 0.2689 0.2689 0.122 0.0947 0.2527 0.153 0.091 0.2559 0.1411 0.0786 0.25 0.0085 0.0025 0.0005 0.0115 -0.2613 0.2915 0.2641 -0.1279 0.1863 0.3353 0.0705 -0.0558 0.2888 0.1373 0.1373 0.1462 0.0945 0.1465 0.1412 0.0871 0.1318 0.1385 0.086 1.12 -0.2211 0.2043 -0.3017 0.2937 -0.2044 0.1422 -0.2048 0.1759 0.0085 0.0025 0.0007 0.0117 -0.0003 0.0114 -0.3381 0.2664 0.1871 -0.0732 0.1888 0.3534 0.1094 -0.0391 0.1114 0.1249 0.1249 0.1252 0.0706 0.1366 0.1404 0.071 0.151 0.1355 0.0695 0.67 -0.3918 0.3472 0.2885 -0.106 0.0517 0.4336 0.0159 0.0188 0.0292 0.2312 0.2312 0.1346 0.0644 0.2217 0.1521 0.0919 0.2434 0.144 0.0869 0.55 0.007 0.0025 0.0005 0.01 0.0031 0.0716 0.0604 0.0731 0.0578 -0.0209 0.0434 0.002 0.0403 0.0401 0.0401 0.0207 0.0366 0.0618 0.0324 0.0542 0.0354 0.021 0.0401 0.0413 0.0235 0.0409 0.66 0.0047 0.0025 0.0006 0.0078 0.0062 0.0025 0.0025 0.0112 0.0008 0.0641 0.0174 0.0018 -0.0265 0.0704 0.0427 0.0427 0.0206 0.0225 -0.0305 0.0358 -0.2008 0.2005 -0.2833 0.2414 -0.2181 0.1701 -0.2182 0.4642 0.1486 0.0526 0.1864 0.105 0.019 -0.065 0.1619 0.0668 0.0668 0.0547 0.0792 0.0748 0.058 0.0789 0.0649 0.0474 0.0646 0.52 0.0061 0.0061 0 0.0025 0.0005 0.0005 0.0066 0.0091 0.005 0.0025 0.0005 0.008 0.0317 0.0337 -0.0054 0.0097 0.0087 0.0194 0.014 0.014 0.0093 0.014 0.0351 0.49 0.0552 0.01 0.0225 0.0768 0.0103 0.0235 0.0458 0.0353 0.0433 0.007 0.0025 0.0005 0.01 -0.3591 0.1788 0.1637 -0.0469 0.1318 0.2961 0.0984 -0.0206 0.0695 0.1556 0.1556 0.115 0.0504 0.1894 0.0843 0.0451 0.55 -0.165 0.0166 0.0104 0.014 0.0127 0.011 0.0147 0.1661 -0.0416 0.0085 0.0025 0.0007 0.0117 -0.0004 0.0113 -0.4215 0.2689 0.1479 -0.0732 0.1805 0.1923 0.0096 0.0339 -0.0304 0.2452 0.2452 0.0848 0.0331 0.224 0.1164 0.0503 0.321 0.1235 0.07 0.54 -0.2143 0.1404 -0.0167 0.0157 0.2169 0.1571 0.0859 0.1523 0.1262 0.0688 0.35 0.0085 0.0025 0.0006 0.0116 0.007 0.007 0 0.0025 0.0006 0.0006 0.0076 0.0101 -0.2579 0.2504 0.0868 -0.0721 0.1918 0.2513 -0.0526 -0.0835 -0.0257 0.1827 0.1827 0.046 0.0339 0.2397 0.108 0.0465 0.2183 0.1579 0.085 0.0354 0.021 0.0401 0.0081 0.0023 0.0034 0.096 0.0491 0.042 0.39 0.007 0.0025 0.0006 0.0101 -0.21 0.1323 0.1711 0.0331 0.1175 0.237 0.0757 -0.0032 0.0203 0.1137 0.1137 0.0855 0.0619 0.2183 0.1579 0.085 0.04 0.0213 0.0408 0.1582 0.0925 0.0577 0.48 -0.4226 0.3696 0.1409 -0.1388 0.1333 0.2491 0.0144 -0.0094 0.0108 0.2316 0.2316 0.0934 0.0324 0.2503 0.079 0.0194 0.241 0.0629 0.0099 0.59 0.0085 0.0085 0 0.0025 0.0009 0.0009 0.0094 0.0119 -0.4615 0.4048 0.2196 -0.0908 0.0138 0.2776 -0.1056 -0.2214 0.3455 -0.1264 -0.1264 0.009 -0.0117 -0.0205 0.0205 0.0085 0.0287 -0.0078 -0.015 0.22 0.0085 0.0025 0.0011 0.0121 -0.6146 0.7364 0.1706 -0.2145 0.0189 0.078 -0.1304 -0.2239 0.2381 0.0297 0.0297 -0.0149 -0.0528 0.0123 0.0107 -0.0023 0.1576 0.0235 0.0003 0.0521 -0.0005 -0.0149 0.2931 0.05 0.0138 0.0287 -0.0078 -0.015 0.44 0.0085 0.0085 0 0.0025 0.0005 0.0005 0.009 0.0115 -0.3389 0.4384 0.1275 -0.0577 0.2783 0.5639 0.0291 -0.0288 0.0154 0.3212 0.3212 0.1596 0.1048 0.3778 0.2168 0.1225 0.334 0.1847 0.0992 0.27 0.009 0.0025 0.0016 0.0131 -0.0009 0.0122 -0.3604 0.2362 0.2851 0.0501 0.1772 0.0113 0.3017 0.0478 0.0426 0.0539 0.0539 0.0867 0.0665 0.0523 0.0946 0.0744 0.0484 0.097 0.0736 0.0545 0.0848 0.0695 0.73 -0.1091 0.0959 -0.189 0.1396 -0.2048 0.2564 -0.2132 0.1956 0.0035 0 0.0005 0.004 0.0218 0.0102 0.0008 0.0002 0.0002 0.0002 0.0002 0.0002 0.0013 0.0059 0.0059 0.0016 0.0041 0.0039 0.0009 0.0031 -0.3677 0.2985 -0.1881 0.2014 -0.4106 0.3163 -0.3343 0.2373 0 0 0.0007 0.0102 0.0109 0.2332 0.1553 -0.0415 0.1218 0.2713 0.0486 0.0034 0.048 0.1983 0.1983 0.1093 0.0709 0.2503 0.079 0.0303 0.2113 0.1558 0.098 0.196 0.1133 0.0713 0 0.0076 0 0 0.0003 0.0096 0.0099 0.207 0.1446 -0.0302 0.1082 0.2381 0.0461 0.0006 0.0452 0.1672 0.0081 0.0023 0.0029 0.0354 0.021 0.039 0.2183 0.1579 0.097 0.0409 0.025 0.0426 0 0 0.0003 0.0091 0.0094 0.1795 0.1263 -0.0146 0.0953 0.2083 0.0424 0.0032 0.0365 0.147 0.147 0.0848 0.0586 -0.1312 0.1131 0.2 -0.1501 0.1272 0.2 0.0081 0.0023 0.0029 0.22 0.0354 0.021 0.039 0.2183 0.1579 0.097 0.0127 0.011 0.022 0.2503 0.079 0.0303 0.0409 0.025 0.0426 0.2113 0.1558 0.098 0.1535 0.0933 0.0661 0 0 0.0005 0.0085 0.009 0.1512 0.1097 0 0.0841 0.1771 0.0388 0.0033 0.031 0.1277 0.1277 0.0736 0.0558 0.0409 0.025 0.044 0.2113 0.1558 0.0994 0.1328 0.0832 0.0644 -0.107 0.0962 0 0 0.0006 0.008 0.0086 0.1295 0.0938 0.0075 0.0695 0.1475 0.0339 0.0045 0.0284 0.1051 0.1051 0.0625 0.0495 0.1124 0.0732 0.0607 0.0354 0.021 0.0403 0.2183 0.1579 0.098 0.2503 0.079 0.0323 0.0127 0.011 0.0225 0.002 0 0.0003 0.0089 0.0112 0.0354 0.021 0.0395 0.2183 0.1579 0.099 0.2503 0.079 0.0299 0.0127 0.011 0.0222 0.0409 0.025 0.0432 0.2113 0.1558 0.1004 -0.0847 0.0825 0.0081 0.0023 0.0028 0.24 -0.0656 0.0675 0.3 0.0081 0.0023 0.0028 Through April 30, 2019, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) for Class II shares at 0.95%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees. Through April 30, 2019, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient management fees, Rule 12b-1 fees (Class II only) and/or shareholder servicing fees to cap the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class I Shares at 0.85% and Class II Shares at 1.10%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees. The Total Annual Portfolio Operating Expenses After Fee Waiver and/or Expense Reimbursement ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio’s contractual class waiver. Through April 30, 2019, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company (doing business as WI Services Company (WISC)), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient fees to ensure that the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) of the Class I shares are at all times equal to the total annual ordinary portfolio operating expenses of the Class II shares less 0.25%, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees. The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio’s contractual class waiver. (The Portfolio’s benchmark changed from Bloomberg Barclays Multiverse Index, effective April 30, 2018. IICO believes that the Bloomberg Barclays Global Credit 1-10 Year Hedged Index is more reflective of the types of securities in which the Portfolio invests than the Bloomberg Barclays Multiverse Index.) Through April 30, 2019, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) for Class II shares at 1.14%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees. The Total Annual Portfolio Operating Expenses After Fee Waiver and/or Expense Reimbursement ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect the Portfolio’s contractual class waiver. Through April 30, 2019, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company (doing business as WI Services Company (WISC)), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient fees to ensure that the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) of the Class I shares are at all times equal to the total annual ordinary portfolio operating expenses of the Class II shares less 0.25%, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees. (The Portfolio’s benchmark changed from Bloomberg Barclays U.S. Aggregate Bond Index, effective April 30, 2018. IICO believes that the Bloomberg Barclays U.S. Credit Index is more reflective of the types of securities in which the Portfolio invests than the Bloomberg Barclays U.S. Aggregate Bond Index.) (The Portfolio’s benchmark changed from the Russell 1000 Index, effective April 30, 2018. IICO believes that the FTSE All-World High Dividend Yield Index is more reflective of the types of securities in which the Portfolio invests than the Russell 1000 Index.) Other Expenses includes the expenses of Ivy VIP ASF II, Ltd., a wholly-owned subsidiary of the Portfolio organized in the Cayman Islands. Through April 30, 2019, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company (doing business as WI Services Company (WISC)), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient fees to ensure that the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) of the Class I shares are at all times equal to the total annual ordinary portfolio operating expenses of the Class II shares less 0.25%, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees. The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio’s contractual class waiver. Through April 30, 2019, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) for Class II shares at 1.13%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees. (Effective February 6, 2018, the MSCI ACWI Index is the Portfolio’s new benchmark index. IICO believes that this index is a more representative index for the types of securities that the Portfolio purchases than the three indexes noted below.) The Total Annual Portfolio Operating Expenses After Fee Waiver and/or Expense Reimbursement ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect the Portfolio’s contractual class waiver. Through April 30, 2019, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company (doing business as WI Services Company (WISC)), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient fees to ensure that the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) of the Class I shares are at all times equal to the total annual ordinary portfolio operating expenses of the Class II shares less 0.25%, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees. Through April 30, 2019, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, has contractually agreed to reduce the management fee paid by the Portfolio by an annual rate of 0.09% of average daily net assets. Prior to that date, the reduction may not be terminated by IICO or the Board of Trustees. (The Portfolio’s benchmark changed from Wilshire US Real Estate Securities Index, effective April 30, 2018. IICO believes that the FTSE Nareit Equity REITs Index is more reflective of the types of securities in which the Portfolio invests than the Wilshire US Real Estate Securities Index.) Through April 30, 2019, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company (doing business as WI Services Company (WISC)), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient fees to ensure that the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) of the Class I shares are at all times equal to the total annual ordinary portfolio operating expenses of the Class II shares less 0.25%, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees. The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio’s contractual class waiver. The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it reflects a change in the Portfolio’s management fee structure. (The Portfolio’s benchmark changed, effective April 30, 2018. IICO believes that the S&P North American Natural Resources Sector Index is more reflective of the types of securities in which the Portfolio invests than the three indexes noted below.) Acquired Fund Fees and Expenses sets forth the Portfolio’s pro rata portion of the cumulative expenses charged by the Underlying Funds in which the Portfolio invested during its last fiscal year. The actual Acquired Fund Fees and Expenses will vary with changes in the allocations of the Portfolio’s assets. The Acquired Fund Fees and Expenses shown are based on the total expense ratio of each Underlying Fund for the Fund’s most recent fiscal year. The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. The Blended Benchmark is computed using a combination of 55% Russell 3000 Index + 30% MSCI EAFE Index + 15% Bloomberg Barclays U.S. Universal Bond Index. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. Acquired Fund Fees and Expenses sets forth the Portfolio’s pro rata portion of the cumulative expenses charged by the Underlying Funds in which the Portfolio invested during its last fiscal year. The actual Acquired Fund Fees and Expenses will vary with changes in the allocations of the Portfolio’s assets. The Acquired Fund Fees and Expenses shown are based on the total expense ratio of each Underlying Fund for the Fund’s most recent fiscal year. The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. The Blended Benchmark is computed using a combination of 45% Russell 3000 Index + 25% Bloomberg Barclays U.S. Universal Bond Index + 20% MSCI EAFE Index + 10% Bloomberg Barclays 1-5 Year U.S. Government/Credit Index. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. Acquired Fund Fees and Expenses sets forth the Portfolio’s pro rata portion of the cumulative expenses charged by the Underlying Funds in which the Portfolio invested during its last fiscal year. The actual Acquired Fund Fees and Expenses will vary with changes in the allocations of the Portfolio’s assets. The Acquired Fund Fees and Expenses shown are based on the total expense ratio of each Underlying Fund for the Fund’s most recent fiscal year. The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. Acquired Fund Fees and Expenses sets forth the Portfolio’s pro rata portion of the cumulative expenses charged by the Underlying Funds in which the Portfolio invested during its last fiscal year. The actual Acquired Fund Fees and Expenses will vary with changes in the allocations of the Portfolio’s assets. The Acquired Fund Fees and Expenses shown are based on the total expense ratio of each Underlying Fund for the Fund’s most recent fiscal year. The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. The Blended Benchmark is computed using a combination of 40% Russell 3000 Index + 30% Bloomberg Barclays U.S. Universal Bond Index + 15% Bloomberg Barclays 1-5 Year U.S. Government/Credit Index + 15% MSCI EAFE Index. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. Acquired Fund Fees and Expenses sets forth the Portfolio’s pro rata portion of the cumulative expenses charged by the Underlying Funds in which the Portfolio invested during its last fiscal year. The actual Acquired Fund Fees and Expenses will vary with changes in the allocations of the Portfolio’s assets. The Acquired Fund Fees and Expenses shown are based on the total expense ratio of each Underlying Fund for the Fund’s most recent fiscal year. The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. The Blended Benchmark is computed using a combination of 40% Russell 3000 Index + 30% Bloomberg Barclays U.S. Universal Bond Index + 15% Bloomberg Barclays 1-5 Year U.S. Government/Credit Index + 15% MSCI EAFE Index. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. Acquired Fund Fees and Expenses sets forth the Portfolio’s pro rata portion of the cumulative expenses charged by the Underlying Funds in which the Portfolio invested during its last fiscal year. The actual Acquired Fund Fees and Expenses will vary with changes in the allocations of the Portfolio’s assets. The Acquired Fund Fees and Expenses shown are based on the total expense ratio of each Underlying Fund for the Fund’s most recent fiscal year. The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. Acquired Fund Fees and Expenses sets forth the Portfolio’s pro rata portion of the cumulative expenses charged by the Underlying Funds in which the Portfolio invested during its last fiscal year. The actual Acquired Fund Fees and Expenses will vary with changes in the allocations of the Portfolio’s assets. The Acquired Fund Fees and Expenses shown are based on the total expense ratio of each Underlying Fund for the Fund’s most recent fiscal year. The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. The Blended Benchmark is computed using a combination of 45% Russell 3000 Index + 25% Bloomberg Barclays U.S. Universal Bond Index + 20% MSCI EAFE Index + 10% Bloomberg Barclays 1-5 Year U.S. Government/Credit Index. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. Acquired Fund Fees and Expenses sets forth the Portfolio’s pro rata portion of the cumulative expenses charged by the Underlying Funds in which the Portfolio invested during its last fiscal year. The actual Acquired Fund Fees and Expenses will vary with changes in the allocations of the Portfolio’s assets. The Acquired Fund Fees and Expenses shown are based on the total expense ratio of each Underlying Fund for the Fund’s most recent fiscal year. The Total Annual Portfolio Operating Expenses ratio shown in this table does not correlate to the expense ratio shown in the Financial Highlights table because that ratio does not include the Acquired Fund Fees and Expenses. The Blended Benchmark is computed using a combination of 50% Russell 3000 Index + 25% MSCI EAFE Index + 20% Bloomberg Barclays U.S. Universal Bond Index + 5% Bloomberg Barclays 1-5 Year U.S. Government/Credit Index. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. The Blended Benchmark is computed using a combination of 35% Russell 3000 Index + 35% Bloomberg Barclays U.S. Universal Bond Index + 20% Bloomberg Barclays 1-5 Year U.S. Government/Credit Index + 10% MSCI EAFE Index. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. The Blended Benchmark is computed using a combination of 50% Russell 3000 Index + 25% MSCI EAFE Index + 20% Bloomberg Barclays U.S. Universal Bond Index + 5% Bloomberg Barclays 1-5 Year U.S. Government/Credit Index. Prior to April 30, 2018, the Portfolio compared its performance to these indexes. Effective April 30, 2018, the Portfolio changed the underlying funds held by the Portfolio. Going forward, the Portfolio will show its performance compared to other, more applicable benchmark indexes and will no longer compare its performance to these indexes. 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Document Effective Date dei_DocumentEffectiveDate Apr. 30, 2018
Prospectus Date rr_ProspectusDate Apr. 30, 2018
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Ivy VIP Core Equity
Ivy VIP Core Equity
Objective
To seek to provide capital growth and appreciation.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses.
Shareholder Fees

(fees paid directly from your investment)
Shareholder Fees
Ivy VIP Core Equity
Class II
USD ($)
Shareholder Fees (fees paid directly from your investment)
Annual Portfolio Operating Expenses

(expenses that you pay each year as a % of the value of your investment)
Annual Portfolio Operating Expenses
Ivy VIP Core Equity
Class II
Management Fees 0.70%
Distribution and Service (12b-1) Fees 0.25%
Other Expenses 0.05%
Total Annual Portfolio Operating Expenses 1.00%
Fee Waiver and/or Expense Reimbursement 0.05% [1]
Total Annual Portfolio Operating Expenses After Fee Waiver and/or Expense Reimbursement 0.95%
[1] Through April 30, 2019, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) for Class II shares at 0.95%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees.
Example
This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies.

The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year, that the Portfolio’s operating expenses remain the same, and that expenses were capped for a one-year period, as indicated above. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Expense Example
1 Year
3 Years
5 Years
10 Years
Ivy VIP Core Equity | Class II | USD ($) 97 313 548 1,220
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
Ivy VIP Core Equity | Class II | USD ($) 97 313 548 1,220
Portfolio Turnover
The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio’s performance. During the most recent fiscal year, the Portfolio’s portfolio turnover rate was 78% of the average value of its portfolio.
Principal Investment Strategies
Ivy VIP Core Equity seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities, primarily in common stocks of large-capitalization companies. The Portfolio seeks to invest in companies that IICO believes have a leading market position or sustainable competitive advantage in their industry. Large-capitalization companies typically are companies with market capitalizations of at least $10 billion at the time of acquisition. The Portfolio invests in securities that have the potential for capital appreciation, or that IICO expects to resist market decline. Although the Portfolio primarily invests in securities issued by large-capitalization companies, it may invest in securities issued by companies of any size. The Portfolio may invest in securities of companies across the valuation spectrum, including securities issued by growth and value companies.

IICO believes that long-term earnings potential relative to market expectations is an important component for stock performance. IICO balances a top-down (assessing the market environment) approach with a bottom-up (researching individual issuers) analysis when selecting securities for the Portfolio, and seeks to exploit what it believes to be catalysts for multi-year earnings growth in companies that it believes have strong or strengthening competitive advantages. Earnings catalysts are diversified across both thematic and company-specific projections.

From a top-down perspective, IICO seeks to identify current trends or themes which indicate specific industries that have the potential to experience multi-year growth. IICO considers various thematic catalysts in its analysis, including major macro-economic and political forces, cyclical inflections, changes in consumer behavior and technology shifts. Once a trend or theme is identified, IICO seeks to invest for the Portfolio in what it believes are dominant companies that will benefit from these trends or themes; including companies that IICO believes have long-term earnings potential that exceeds market expectations.

Through its bottom-up stock selection, IICO searches for companies for which it believes market expectations are too low with regard to the ability of the companies to grow their businesses.

In selecting securities for the Portfolio, IICO may consider whether a company has new products to introduce, has undergone cost restructuring or a management change, or has improved its execution, among other factors.

The Portfolio typically holds a limited number of stocks (generally 40 to 50).

Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets.

Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. Among other factors, IICO considers whether, in its opinion, the security has fully appreciated according to IICO’s forecast, has ceased to offer the prospect of significant growth potential, has had its competitive barriers diminished, has seen its earnings catalyst lose its impact, or has performed below IICO’s expectations regarding the company’s long-term earnings potential. IICO also may sell a security to reduce the Portfolio’s holding in that security if that issuer’s competitive advantage has diminished or if the Portfolio’s portfolio managers lose conviction in a previously identified trend or theme, to take advantage of what it believes are more attractive investment opportunities or to raise cash.
Principal Investment Risks
As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program.

A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:
  • Catalyst Risk. Investing in companies in anticipation of a catalyst carries the risk that certain of such catalysts may not happen or the market may react differently than expected to such catalysts, in which case the Portfolio may experience losses.
  • Company Risk. A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.
  • Foreign Exposure Risk. The securities of many companies may have significant exposure to foreign markets as a result of the company’s operations, products or services in those foreign markets. As a result, a company’s domicile and/or the markets in which the company’s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company’s products or services are sold.
  • Growth Stock Risk. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general.
  • Holdings Risk. The Portfolio typically holds a limited number of stocks (generally 40 to 50). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio’s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities.
  • Information Technology Sector Risk. Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation.
  • Large Company Risk. Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies.
  • Management Risk. Portfolio performance is primarily dependent on IICO’s skill in evaluating and managing the Portfolio’s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.
  • Market Risk. Markets can be volatile, and the Portfolio’s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.
  • Sector Risk. At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
  • Theme Risk. Because the Portfolio’s investment strategy incorporates the identification of themes, the Portfolio’s performance may suffer if IICO does not correctly identify such themes or if a theme develops in an unanticipated way.
  • Value Stock Risk. Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of IICO, undervalued. The value of a security believed by IICO to be undervalued may never reach what is believed to be its full value, such security’s value may decrease or such security may be appropriately priced.
Performance
The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio’s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.

Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower.

The Portfolio’s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio’s updated performance.
Chart of Year-by-Year Returns
as of December 31 each year
Bar Chart
In the period shown in the chart, the highest quarterly return was 17.59% (the third quarter of 2009) and the lowest quarterly return was -20.48% (the fourth quarter of 2008).
Average Annual Total Returns

as of December 31, 2017
Average Annual Total Returns - Ivy VIP Core Equity
1 Year
5 Years
10 Years
Class II Shares 20.75% 12.74% 7.95%
S&P 500 Index (reflects no deduction for fees, expenses or taxes) (Index comparison begins on March 4, 2008) 21.83% 15.79% 8.50%
Lipper Variable Annuity Large-Cap Core Funds Universe Average (net of fees and expenses) 20.71% 14.55% 7.52%
XML 12 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName Ivy Variable Insurance Portfolios
Prospectus Date rr_ProspectusDate Apr. 30, 2018
Ivy VIP Core Equity  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading Ivy VIP Core Equity
Objective [Heading] rr_ObjectiveHeading Objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock To seek to provide capital growth and appreciation.
Expense [Heading] rr_ExpenseHeading Fees and Expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder Fees

(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Portfolio Operating Expenses

(expenses that you pay each year as a % of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination April 30, 2019
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio Turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio’s performance. During the most recent fiscal year, the Portfolio’s portfolio turnover rate was 78% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 78.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies.

The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year, that the Portfolio’s operating expenses remain the same, and that expenses were capped for a one-year period, as indicated above. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Strategy [Heading] rr_StrategyHeading Principal Investment Strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock Ivy VIP Core Equity seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities, primarily in common stocks of large-capitalization companies. The Portfolio seeks to invest in companies that IICO believes have a leading market position or sustainable competitive advantage in their industry. Large-capitalization companies typically are companies with market capitalizations of at least $10 billion at the time of acquisition. The Portfolio invests in securities that have the potential for capital appreciation, or that IICO expects to resist market decline. Although the Portfolio primarily invests in securities issued by large-capitalization companies, it may invest in securities issued by companies of any size. The Portfolio may invest in securities of companies across the valuation spectrum, including securities issued by growth and value companies.

IICO believes that long-term earnings potential relative to market expectations is an important component for stock performance. IICO balances a top-down (assessing the market environment) approach with a bottom-up (researching individual issuers) analysis when selecting securities for the Portfolio, and seeks to exploit what it believes to be catalysts for multi-year earnings growth in companies that it believes have strong or strengthening competitive advantages. Earnings catalysts are diversified across both thematic and company-specific projections.

From a top-down perspective, IICO seeks to identify current trends or themes which indicate specific industries that have the potential to experience multi-year growth. IICO considers various thematic catalysts in its analysis, including major macro-economic and political forces, cyclical inflections, changes in consumer behavior and technology shifts. Once a trend or theme is identified, IICO seeks to invest for the Portfolio in what it believes are dominant companies that will benefit from these trends or themes; including companies that IICO believes have long-term earnings potential that exceeds market expectations.

Through its bottom-up stock selection, IICO searches for companies for which it believes market expectations are too low with regard to the ability of the companies to grow their businesses.

In selecting securities for the Portfolio, IICO may consider whether a company has new products to introduce, has undergone cost restructuring or a management change, or has improved its execution, among other factors.

The Portfolio typically holds a limited number of stocks (generally 40 to 50).

Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets.

Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. Among other factors, IICO considers whether, in its opinion, the security has fully appreciated according to IICO’s forecast, has ceased to offer the prospect of significant growth potential, has had its competitive barriers diminished, has seen its earnings catalyst lose its impact, or has performed below IICO’s expectations regarding the company’s long-term earnings potential. IICO also may sell a security to reduce the Portfolio’s holding in that security if that issuer’s competitive advantage has diminished or if the Portfolio’s portfolio managers lose conviction in a previously identified trend or theme, to take advantage of what it believes are more attractive investment opportunities or to raise cash.
Risk [Heading] rr_RiskHeading Principal Investment Risks
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program.

A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:
  • Catalyst Risk. Investing in companies in anticipation of a catalyst carries the risk that certain of such catalysts may not happen or the market may react differently than expected to such catalysts, in which case the Portfolio may experience losses.
  • Company Risk. A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.
  • Foreign Exposure Risk. The securities of many companies may have significant exposure to foreign markets as a result of the company’s operations, products or services in those foreign markets. As a result, a company’s domicile and/or the markets in which the company’s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company’s products or services are sold.
  • Growth Stock Risk. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general.
  • Holdings Risk. The Portfolio typically holds a limited number of stocks (generally 40 to 50). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio’s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities.
  • Information Technology Sector Risk. Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation.
  • Large Company Risk. Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies.
  • Management Risk. Portfolio performance is primarily dependent on IICO’s skill in evaluating and managing the Portfolio’s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.
  • Market Risk. Markets can be volatile, and the Portfolio’s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.
  • Sector Risk. At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
  • Theme Risk. Because the Portfolio’s investment strategy incorporates the identification of themes, the Portfolio’s performance may suffer if IICO does not correctly identify such themes or if a theme develops in an unanticipated way.
  • Value Stock Risk. Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of IICO, undervalued. The value of a security believed by IICO to be undervalued may never reach what is believed to be its full value, such security’s value may decrease or such security may be appropriately priced.
Risk Lose Money [Text] rr_RiskLoseMoney As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio’s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.

Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower.

The Portfolio’s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio’s updated performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio’s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio).
Performance Availability Phone [Text] rr_PerformanceAvailabilityPhone 800.777.6472
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture The Portfolio’s past performance does not necessarily indicate how it will perform in the future.
Bar Chart [Heading] rr_BarChartHeading Chart of Year-by-Year Returns
as of December 31 each year
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock In the period shown in the chart, the highest quarterly return was 17.59% (the third quarter of 2009) and the lowest quarterly return was -20.48% (the fourth quarter of 2008).
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns

as of December 31, 2017
Ivy VIP Core Equity | Class II  
Risk/Return: rr_RiskReturnAbstract  
Shareholder Fees (fees paid directly from your investment) rr_ShareholderFeeOther
Management Fees rr_ManagementFeesOverAssets 0.70%
Distribution and Service (12b-1) Fees rr_DistributionAndService12b1FeesOverAssets 0.25%
Other Expenses rr_OtherExpensesOverAssets 0.05%
Total Annual Portfolio Operating Expenses rr_ExpensesOverAssets 1.00%
Fee Waiver and/or Expense Reimbursement rr_FeeWaiverOrReimbursementOverAssets 0.05% [1]
Total Annual Portfolio Operating Expenses After Fee Waiver and/or Expense Reimbursement rr_NetExpensesOverAssets 0.95%
1 Year rr_ExpenseExampleYear01 $ 97
3 Years rr_ExpenseExampleYear03 313
5 Years rr_ExpenseExampleYear05 548
10 Years rr_ExpenseExampleYear10 1,220
1 Year rr_ExpenseExampleNoRedemptionYear01 97
3 Years rr_ExpenseExampleNoRedemptionYear03 313
5 Years rr_ExpenseExampleNoRedemptionYear05 548
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,220
2008 rr_AnnualReturn2008 (34.77%)
2009 rr_AnnualReturn2009 24.02%
2010 rr_AnnualReturn2010 20.89%
2011 rr_AnnualReturn2011 1.66%
2012 rr_AnnualReturn2012 18.60%
2013 rr_AnnualReturn2013 33.51%
2014 rr_AnnualReturn2014 9.68%
2015 rr_AnnualReturn2015 (0.69%)
2016 rr_AnnualReturn2016 3.74%
2017 rr_AnnualReturn2017 20.75%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel highest quarterly return
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 17.59%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel lowest quarterly return
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (20.48%)
1 Year rr_AverageAnnualReturnYear01 20.75%
5 Years rr_AverageAnnualReturnYear05 12.74%
10 Years rr_AverageAnnualReturnYear10 7.95%
Ivy VIP Core Equity | S&P 500 Index (reflects no deduction for fees, expenses or taxes) (Index comparison begins on March 4, 2008)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 21.83%
5 Years rr_AverageAnnualReturnYear05 15.79%
10 Years rr_AverageAnnualReturnYear10 8.50%
Ivy VIP Core Equity | Lipper Variable Annuity Large-Cap Core Funds Universe Average (net of fees and expenses)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 20.71%
5 Years rr_AverageAnnualReturnYear05 14.55%
10 Years rr_AverageAnnualReturnYear10 7.52%
[1] Through April 30, 2019, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) for Class II shares at 0.95%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees.
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Ivy VIP Growth
Ivy VIP Growth
Objective
To seek to provide growth of capital.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses.
Shareholder Fees

(fees paid directly from your investment)
Shareholder Fees
Ivy VIP Growth
Class II
USD ($)
Shareholder Fees (fees paid directly from your investment)
Annual Portfolio Operating Expenses

(expenses that you pay each year as a % of the value of your investment)
Annual Portfolio Operating Expenses
Ivy VIP Growth
Class II
Management Fees 0.70%
Distribution and Service (12b-1) Fees 0.25%
Other Expenses 0.04%
Total Annual Portfolio Operating Expenses 0.99%
Example
This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies.

The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio’s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Expense Example
1 Year
3 Years
5 Years
10 Years
Ivy VIP Growth | Class II | USD ($) 101 315 547 1,213
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
Ivy VIP Growth | Class II | USD ($) 101 315 547 1,213
Portfolio Turnover
The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio’s performance. During the most recent fiscal year, the Portfolio’s portfolio turnover rate was 41% of the average value of its portfolio.
Principal Investment Strategies
Ivy VIP Growth seeks to achieve its objective by investing primarily in a diversified portfolio of common stocks issued by large-capitalization, growth-oriented companies with above-average levels of profitability and that Ivy Investment Management Company (IICO), the Portfolio’s investment manager, believes have the ability to sustain growth over the long term. Large-capitalization companies typically are companies with market capitalizations of at least $10 billion at the time of acquisition. Growth-oriented companies are those whose earnings IICO believes are likely to grow faster than the economy.

IICO primarily utilizes a bottom-up (researching individual issuers) strategy in selecting securities for the Portfolio and seeks to invest for the Portfolio in companies that it believes possess, or have the potential to achieve, dominant market positions and/or structural competitive advantages. IICO believes that these characteristics can help to mitigate competition and lead to more resilient and sustainable revenue and earnings growth.

IICO begins its investment process by screening large-capitalization companies based on profitability, and then attempts to focus on companies operating in large, growing, addressable markets (generally, the total potential markets for their goods and services) whose competitive market position IICO believes will allow them to grow faster than the general economy. The key factors IICO typically analyzes consist of: a company’s brand equity, proprietary technology, economies of scale, barriers to entry, strength of management, and level of competitive intensity; return of capital in the form of higher dividends or share repurchases; strong balance sheets and cash flows; the threat of substitute products; and the interaction and bargaining power between a company, its customers, suppliers and competitors. The Portfolio typically holds a limited number of stocks (generally 40 to 60).

Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets.

In general, IICO may sell a security when, in IICO’s opinion, a company experiences deterioration in its growth and/or profitability characteristics, or a fundamental breakdown of its sustainable competitive advantages. IICO also may sell a security if it believes that the security no longer presents sufficient appreciation potential; this may be caused by, or be an effect of, changes in the industry or sector of the issuer, loss by the company of its competitive position, poor execution by management, the threat of technological disruption and/or poor use of resources. IICO also may sell a security to reduce the Portfolio’s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash.
Principal Investment Risks
As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program.

A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:
  • Company Risk. A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.
  • Foreign Exposure Risk. The securities of many companies may have significant exposure to foreign markets as a result of the company’s operations, products or services in those foreign markets. As a result, a company’s domicile and/or the markets in which the company’s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company’s products or services are sold.
  • Growth Stock Risk. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general.
  • Holdings Risk. The Portfolio typically holds a limited number of stocks (generally 40 to 60), and the Portfolio’s managers also tend to invest a significant portion of the Portfolio’s total assets in a limited number of stocks. As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio’s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities or if the Portfolio’s managers invested a greater portion of the Portfolio’s total assets in a larger number of stocks.
  • Information Technology Sector Risk. Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation.
  • Large Company Risk. Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies.
  • Management Risk. Portfolio performance is primarily dependent on IICO’s skill in evaluating and managing the Portfolio’s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.
  • Market Risk. Markets can be volatile, and the Portfolio’s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.
  • Sector Risk. At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
Performance
The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio’s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.

Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower.

Prior to April 30, 2012, the Portfolio’s investment objective was to seek capital growth, with current income as a secondary objective. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital.

The Portfolio’s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio’s updated performance.
Chart of Year-by-Year Returns
as of December 31 each year
Bar Chart
In the period shown in the chart, the highest quarterly return was 14.22% (the first quarter of 2012) and the lowest quarterly return was -20.44% (the fourth quarter of 2008).
Average Annual Total Returns

as of December 31, 2017
Average Annual Total Returns - Ivy VIP Growth
1 Year
5 Years
10 Years
Class II Shares 29.34% 16.44% 8.43%
Russell 1000 Growth Index (reflects no deduction for fees, expenses or taxes) 30.21% 17.33% 10.00%
Lipper Variable Annuity Large-Cap Growth Funds Universe Average (net of fees and expenses) 30.86% 16.29% 8.73%

XML 15 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName Ivy Variable Insurance Portfolios
Prospectus Date rr_ProspectusDate Apr. 30, 2018
Ivy VIP Growth  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading Ivy VIP Growth
Objective [Heading] rr_ObjectiveHeading Objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock To seek to provide growth of capital.
Expense [Heading] rr_ExpenseHeading Fees and Expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder Fees

(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Portfolio Operating Expenses

(expenses that you pay each year as a % of the value of your investment)
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio Turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio’s performance. During the most recent fiscal year, the Portfolio’s portfolio turnover rate was 41% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 41.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies.

The example assumes that you invest $10,000 in the shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio’s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Strategy [Heading] rr_StrategyHeading Principal Investment Strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock Ivy VIP Growth seeks to achieve its objective by investing primarily in a diversified portfolio of common stocks issued by large-capitalization, growth-oriented companies with above-average levels of profitability and that Ivy Investment Management Company (IICO), the Portfolio’s investment manager, believes have the ability to sustain growth over the long term. Large-capitalization companies typically are companies with market capitalizations of at least $10 billion at the time of acquisition. Growth-oriented companies are those whose earnings IICO believes are likely to grow faster than the economy.

IICO primarily utilizes a bottom-up (researching individual issuers) strategy in selecting securities for the Portfolio and seeks to invest for the Portfolio in companies that it believes possess, or have the potential to achieve, dominant market positions and/or structural competitive advantages. IICO believes that these characteristics can help to mitigate competition and lead to more resilient and sustainable revenue and earnings growth.

IICO begins its investment process by screening large-capitalization companies based on profitability, and then attempts to focus on companies operating in large, growing, addressable markets (generally, the total potential markets for their goods and services) whose competitive market position IICO believes will allow them to grow faster than the general economy. The key factors IICO typically analyzes consist of: a company’s brand equity, proprietary technology, economies of scale, barriers to entry, strength of management, and level of competitive intensity; return of capital in the form of higher dividends or share repurchases; strong balance sheets and cash flows; the threat of substitute products; and the interaction and bargaining power between a company, its customers, suppliers and competitors. The Portfolio typically holds a limited number of stocks (generally 40 to 60).

Many of the companies in which the Portfolio may invest have diverse operations, with products or services in foreign markets. Therefore, the Portfolio may have indirect exposure to various foreign markets through investments in these companies, even if the Portfolio is not invested directly in such markets.

In general, IICO may sell a security when, in IICO’s opinion, a company experiences deterioration in its growth and/or profitability characteristics, or a fundamental breakdown of its sustainable competitive advantages. IICO also may sell a security if it believes that the security no longer presents sufficient appreciation potential; this may be caused by, or be an effect of, changes in the industry or sector of the issuer, loss by the company of its competitive position, poor execution by management, the threat of technological disruption and/or poor use of resources. IICO also may sell a security to reduce the Portfolio’s holding in that security, to take advantage of what it believes are more attractive investment opportunities or to raise cash.
Risk [Heading] rr_RiskHeading Principal Investment Risks
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program.

A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:
  • Company Risk. A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.
  • Foreign Exposure Risk. The securities of many companies may have significant exposure to foreign markets as a result of the company’s operations, products or services in those foreign markets. As a result, a company’s domicile and/or the markets in which the company’s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company’s products or services are sold.
  • Growth Stock Risk. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general.
  • Holdings Risk. The Portfolio typically holds a limited number of stocks (generally 40 to 60), and the Portfolio’s managers also tend to invest a significant portion of the Portfolio’s total assets in a limited number of stocks. As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio’s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities or if the Portfolio’s managers invested a greater portion of the Portfolio’s total assets in a larger number of stocks.
  • Information Technology Sector Risk. Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation.
  • Large Company Risk. Large-capitalization companies may go in and out of favor based on market and economic conditions. Large-capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large-capitalization companies could trail the returns on investments in securities of smaller companies.
  • Management Risk. Portfolio performance is primarily dependent on IICO’s skill in evaluating and managing the Portfolio’s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.
  • Market Risk. Markets can be volatile, and the Portfolio’s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.
  • Sector Risk. At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
Risk Lose Money [Text] rr_RiskLoseMoney As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio’s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.

Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower.

Prior to April 30, 2012, the Portfolio’s investment objective was to seek capital growth, with current income as a secondary objective. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital.

The Portfolio’s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio’s updated performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio’s returns with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio).
Performance Availability Phone [Text] rr_PerformanceAvailabilityPhone 800.777.6472
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture The Portfolio’s past performance does not necessarily indicate how it will perform in the future.
Bar Chart [Heading] rr_BarChartHeading Chart of Year-by-Year Returns
as of December 31 each year
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock In the period shown in the chart, the highest quarterly return was 14.22% (the first quarter of 2012) and the lowest quarterly return was -20.44% (the fourth quarter of 2008).
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns

as of December 31, 2017
Ivy VIP Growth | Class II  
Risk/Return: rr_RiskReturnAbstract  
Shareholder Fees (fees paid directly from your investment) rr_ShareholderFeeOther
Management Fees rr_ManagementFeesOverAssets 0.70%
Distribution and Service (12b-1) Fees rr_DistributionAndService12b1FeesOverAssets 0.25%
Other Expenses rr_OtherExpensesOverAssets 0.04%
Total Annual Portfolio Operating Expenses rr_ExpensesOverAssets 0.99%
1 Year rr_ExpenseExampleYear01 $ 101
3 Years rr_ExpenseExampleYear03 315
5 Years rr_ExpenseExampleYear05 547
10 Years rr_ExpenseExampleYear10 1,213
1 Year rr_ExpenseExampleNoRedemptionYear01 101
3 Years rr_ExpenseExampleNoRedemptionYear03 315
5 Years rr_ExpenseExampleNoRedemptionYear05 547
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,213
2008 rr_AnnualReturn2008 (36.27%)
2009 rr_AnnualReturn2009 27.07%
2010 rr_AnnualReturn2010 12.58%
2011 rr_AnnualReturn2011 2.12%
2012 rr_AnnualReturn2012 12.75%
2013 rr_AnnualReturn2013 36.46%
2014 rr_AnnualReturn2014 11.81%
2015 rr_AnnualReturn2015 7.17%
2016 rr_AnnualReturn2016 1.22%
2017 rr_AnnualReturn2017 29.34%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel highest quarterly return
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Mar. 31, 2012
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 14.22%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel lowest quarterly return
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (20.44%)
1 Year rr_AverageAnnualReturnYear01 29.34%
5 Years rr_AverageAnnualReturnYear05 16.44%
10 Years rr_AverageAnnualReturnYear10 8.43%
Ivy VIP Growth | Russell 1000 Growth Index (reflects no deduction for fees, expenses or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 30.21%
5 Years rr_AverageAnnualReturnYear05 17.33%
10 Years rr_AverageAnnualReturnYear10 10.00%
Ivy VIP Growth | Lipper Variable Annuity Large-Cap Growth Funds Universe Average (net of fees and expenses)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 30.86%
5 Years rr_AverageAnnualReturnYear05 16.29%
10 Years rr_AverageAnnualReturnYear10 8.73%
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Ivy VIP Micro Cap Growth
Ivy VIP Micro Cap Growth
Objective
To seek to provide growth of capital.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses.
Shareholder Fees

(fees paid directly from your investment)
Shareholder Fees - Ivy VIP Micro Cap Growth - USD ($)
Class I
Class II
Shareholder Fees (fees paid directly from your investment)
Annual Portfolio Operating Expenses

(expenses that you pay each year as a % of the value of your investment)
Annual Portfolio Operating Expenses - Ivy VIP Micro Cap Growth
Class I
Class II
Management Fees 0.95% 0.95%
Distribution and Service (12b-1) Fees none 0.25%
Other Expenses 0.12% 0.12%
Total Annual Portfolio Operating Expenses [1],[2] 1.07% 1.32%
[1] The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio’s contractual class waiver.
[2] Through April 30, 2019, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company (doing business as WI Services Company (WISC)), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient fees to ensure that the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) of the Class I shares are at all times equal to the total annual ordinary portfolio operating expenses of the Class II shares less 0.25%, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees.
Example
This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies.

The example assumes that you invest $10,000 in the particular class of shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio’s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Expense Example - Ivy VIP Micro Cap Growth - USD ($)
1 Year
3 Years
5 Years
10 Years
Class I 109 340 590 1,306
Class II 134 418 723 1,590
Expense Example, No Redemption - Ivy VIP Micro Cap Growth - USD ($)
1 Year
3 Years
5 Years
10 Years
Class I 109 340 590 1,306
Class II 134 418 723 1,590
Portfolio Turnover
The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio’s performance. During the most recent fiscal year, the Portfolio’s portfolio turnover rate was 37% of the average value of its portfolio.
Principal Investment Strategies
Ivy VIP Micro Cap Growth seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of micro-capitalization companies. The Portfolio considers a company to be a micro-capitalization company if its market capitalization, at the time of acquisition, is less than the greater of $2 billion or the market capitalization of the largest company in the Russell Microcap Growth Index. As of June 30, 2017 (the quarter-end closest to the index’s rebalance), the largest company in the Russell Microcap Growth Index had a market capitalization of $1.11 billion. The Portfolio primarily invests in common stock, which may include common stocks that are offered in initial public offerings (IPOs).

In selecting equity securities for the Portfolio, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, utilizes a bottom-up (researching individual issuers) stock selection process. IICO seeks to invest for the Portfolio in securities of early stage growth companies operating in industries and/or sectors that are expected to benefit from areas of the economy that demonstrate the ability to grow meaningfully faster than overall gross domestic product for a sustained period of time. The Portfolio typically holds a limited number of stocks (generally 50 to 70).

Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. For example, IICO may sell a security if it believes that the issuer’s growth and/or profitability characteristics are deteriorating or the issuer no longer maintains a competitive advantage, when it believes there are more attractive investment opportunities, when there is a lack of management execution, when it believes a company’s valuation has become unattractive relative to industry leaders and industry-specific metrics, or a company’s competitive landscape has changed, to reduce the Portfolio’s holding in that security or its exposure to a particular sector, or to raise cash.
Principal Investment Risks
As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program.

A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:
  • Company Risk. A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.
  • Growth Stock Risk. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general.
  • Health Care Sector Risk. Investment risks associated with investing in securities in the health care sector, in addition to other risks, include heavy dependence on patent protection, with profitability affected by the expiration of patents; expenses and losses from extensive litigation based on product liability and similar claims; competitive forces that may make it difficult to raise prices and, in fact, may result in price discounting; the potentially long and costly process for obtaining new product approval by the Food and Drug Administration; the difficulty health care providers may have obtaining staff to deliver services; susceptibility to product obsolescence; and thin capitalization and limited product lines, markets, financial resources or personnel.
  • Holdings Risk. The Portfolio typically holds a limited number of stocks (generally 50 to 70). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio’s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities.
  • Information Technology Sector Risk. Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation.
  • Initial Public Offering (IPO) Risk. Any positive effect of investments in IPOs may not be sustainable because of a number of factors. Namely, the Portfolio may not be able to buy shares in some IPOs, or may be able to buy only a small number of shares. Also, the performance of IPOs generally is volatile, and is dependent on market psychology and economic conditions. To the extent that IPOs have a significant positive impact on the Portfolio’s performance, this may not be able to be replicated in the future. The relative performance impact of IPOs also is likely to decline as the Portfolio grows.
  • Liquidity Risk. Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly.
  • Management Risk. Portfolio performance is primarily dependent on IICO’s skill in evaluating and managing the Portfolio’s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.
  • Market Risk. Markets can be volatile, and the Portfolio’s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.
  • Sector Risk. At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
  • Small Company Risk. Securities of small to micro-capitalization companies are subject to greater price volatility, lower trading volume and less liquidity due to, among other things, such companies’ small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations and such securities may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns. In some cases, there could be difficulties in selling securities of small to micro-capitalization companies at the desired time.
Performance
The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio’s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio’s Class I shares because the share class has not been in existence for a full calendar year. Once that class has a full calendar year of performance, it will be included in the table below.

Wall Street Associates, LLC served as the investment subadviser to the Portfolio until July 1, 2015. On July 1, 2015, Waddell & Reed Investment Management Company (WRIMCO) assumed direct investment management responsibilities for the Portfolio. On October 1, 2016, IICO, an affiliate of WRIMCO, became the Portfolio’s investment adviser.

Prior to April 30, 2012, the Portfolio’s investment objective was to seek long-term capital appreciation. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital.

The Portfolio’s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio’s updated performance.
Chart of Year-by-Year Returns
as of December 31 each year
Bar Chart
In the period shown in the chart, the highest quarterly return was 29.37% (the second quarter of 2009) and the lowest quarterly return was -30.17% (the fourth quarter of 2008).
Average Annual Total Returns

as of December 31, 2017
Average Annual Total Returns - Ivy VIP Micro Cap Growth
1 Year
5 Years
10 Years
Class II Shares 8.83% 11.60% 6.41%
Russell 2000 Growth Index (reflects no deduction for fees, expenses or taxes) 22.17% 15.21% 9.19%
Russell Microcap Growth Index (reflects no deduction for fees, expenses or taxes) 16.65% 13.82% 7.23%
Lipper Variable Annuity Small-Cap Growth Funds Universe Average (net of fees and expenses) 24.34% 14.40% 8.69%

XML 18 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName Ivy Variable Insurance Portfolios
Prospectus Date rr_ProspectusDate Apr. 30, 2018
Ivy VIP Micro Cap Growth  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading Ivy VIP Micro Cap Growth
Objective [Heading] rr_ObjectiveHeading Objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock To seek to provide growth of capital.
Expense [Heading] rr_ExpenseHeading Fees and Expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. The table below does not reflect any fees and expenses imposed under the variable life insurance policies and variable annuity contracts (collectively, Policies) through which this Portfolio is offered. See the Policy prospectus for a description of those fees and expenses.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder Fees

(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Portfolio Operating Expenses

(expenses that you pay each year as a % of the value of your investment)
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio Turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio’s performance. During the most recent fiscal year, the Portfolio’s portfolio turnover rate was 37% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 37.00%
Expenses Restated to Reflect Current [Text] rr_ExpensesRestatedToReflectCurrent The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio's contractual class waiver.
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the shares of the Portfolio with the cost of investing in other portfolios. This example does not reflect any fees and expenses imposed under the Policies.

The example assumes that you invest $10,000 in the particular class of shares of the Portfolio for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Portfolio’s operating expenses remain the same. The costs are the same for each time period if you continue to hold your shares or if you redeem all your shares at the end of those periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Strategy [Heading] rr_StrategyHeading Principal Investment Strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock Ivy VIP Micro Cap Growth seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of micro-capitalization companies. The Portfolio considers a company to be a micro-capitalization company if its market capitalization, at the time of acquisition, is less than the greater of $2 billion or the market capitalization of the largest company in the Russell Microcap Growth Index. As of June 30, 2017 (the quarter-end closest to the index’s rebalance), the largest company in the Russell Microcap Growth Index had a market capitalization of $1.11 billion. The Portfolio primarily invests in common stock, which may include common stocks that are offered in initial public offerings (IPOs).

In selecting equity securities for the Portfolio, Ivy Investment Management Company (IICO), the Portfolio’s investment manager, utilizes a bottom-up (researching individual issuers) stock selection process. IICO seeks to invest for the Portfolio in securities of early stage growth companies operating in industries and/or sectors that are expected to benefit from areas of the economy that demonstrate the ability to grow meaningfully faster than overall gross domestic product for a sustained period of time. The Portfolio typically holds a limited number of stocks (generally 50 to 70).

Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. For example, IICO may sell a security if it believes that the issuer’s growth and/or profitability characteristics are deteriorating or the issuer no longer maintains a competitive advantage, when it believes there are more attractive investment opportunities, when there is a lack of management execution, when it believes a company’s valuation has become unattractive relative to industry leaders and industry-specific metrics, or a company’s competitive landscape has changed, to reduce the Portfolio’s holding in that security or its exposure to a particular sector, or to raise cash.
Risk [Heading] rr_RiskHeading Principal Investment Risks
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment. The Portfolio is not intended as a complete investment program.

A variety of factors can affect the investment performance of the Portfolio and prevent it from achieving its objective. These include:
  • Company Risk. A company may be more volatile or perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.
  • Growth Stock Risk. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may be more volatile or not perform as well as value stocks or the stock market in general.
  • Health Care Sector Risk. Investment risks associated with investing in securities in the health care sector, in addition to other risks, include heavy dependence on patent protection, with profitability affected by the expiration of patents; expenses and losses from extensive litigation based on product liability and similar claims; competitive forces that may make it difficult to raise prices and, in fact, may result in price discounting; the potentially long and costly process for obtaining new product approval by the Food and Drug Administration; the difficulty health care providers may have obtaining staff to deliver services; susceptibility to product obsolescence; and thin capitalization and limited product lines, markets, financial resources or personnel.
  • Holdings Risk. The Portfolio typically holds a limited number of stocks (generally 50 to 70). As a result, the appreciation or depreciation of any one security held by the Portfolio may have a greater impact on the Portfolio’s net asset value (NAV) than it would if the Portfolio invested in a larger number of securities.
  • Information Technology Sector Risk. Investment risks associated with investing in the information technology sector, in addition to other risks, include the intense competition to which information technology companies may be subject; the dramatic and often unpredictable changes in growth rates and competition for qualified personnel among information technology companies; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation.
  • Initial Public Offering (IPO) Risk. Any positive effect of investments in IPOs may not be sustainable because of a number of factors. Namely, the Portfolio may not be able to buy shares in some IPOs, or may be able to buy only a small number of shares. Also, the performance of IPOs generally is volatile, and is dependent on market psychology and economic conditions. To the extent that IPOs have a significant positive impact on the Portfolio’s performance, this may not be able to be replicated in the future. The relative performance impact of IPOs also is likely to decline as the Portfolio grows.
  • Liquidity Risk. Generally, a security is liquid if the Portfolio is able to sell the security at a fair price within a reasonable time. Liquidity generally is related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Portfolio may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. Certain investments that were liquid when the Portfolio purchased them may become illiquid, sometimes abruptly.
  • Management Risk. Portfolio performance is primarily dependent on IICO’s skill in evaluating and managing the Portfolio’s holdings. There can be no guarantee that its decisions will produce the desired results, and the Portfolio may not perform as well as other similar mutual funds.
  • Market Risk. Markets can be volatile, and the Portfolio’s holdings can decline in response to adverse issuer, political, regulatory, market or economic developments or conditions that may cause a broad market decline. Different parts of the market, including different sectors and different types of securities, can react differently to these developments. Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in volatility in the financial markets, both U.S. and foreign. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Portfolio. These circumstances also have decreased liquidity in some markets and may continue to do so. In addition, certain events, such as natural disasters, terrorist attacks, war, and other geopolitical events, have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.
  • Sector Risk. At times, the Portfolio may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Individual sectors may be more volatile, and may perform differently, than the broader market. Companies in the same economic sector may be similarly affected by economic or market events, making the Portfolio more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
  • Small Company Risk. Securities of small to micro-capitalization companies are subject to greater price volatility, lower trading volume and less liquidity due to, among other things, such companies’ small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations and such securities may be affected to a greater extent than other types of securities by the underperformance of a sector or during market downturns. In some cases, there could be difficulties in selling securities of small to micro-capitalization companies at the desired time.
Risk Lose Money [Text] rr_RiskLoseMoney As with any mutual fund, the value of the Portfolio’s shares will change, and you could lose money on your investment.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio’s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio). The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results. No performance information is presented for the Portfolio’s Class I shares because the share class has not been in existence for a full calendar year. Once that class has a full calendar year of performance, it will be included in the table below.

Wall Street Associates, LLC served as the investment subadviser to the Portfolio until July 1, 2015. On July 1, 2015, Waddell & Reed Investment Management Company (WRIMCO) assumed direct investment management responsibilities for the Portfolio. On October 1, 2016, IICO, an affiliate of WRIMCO, became the Portfolio’s investment adviser.

Prior to April 30, 2012, the Portfolio’s investment objective was to seek long-term capital appreciation. Effective as of April 30, 2012, the Portfolio changed its investment objective to seeking to provide growth of capital.

The Portfolio’s past performance does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please call 800.777.6472 for the Portfolio’s updated performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The chart and table below provide some indication of the risks of investing in the Portfolio. The chart shows how performance has varied from year to year for Class II shares of the Portfolio. The table shows the average annual total returns for Class II shares of the Portfolio and also compares the Portfolio’s returns with those of two broad-based securities market indexes and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Portfolio).
Performance One Year or Less [Text] rr_PerformanceOneYearOrLess No performance information is presented for the Portfolio’s Class I shares because the share class has not been in existence for a full calendar year.
Performance Availability Phone [Text] rr_PerformanceAvailabilityPhone 800.777.6472
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture The Portfolio’s past performance does not necessarily indicate how it will perform in the future.
Bar Chart [Heading] rr_BarChartHeading Chart of Year-by-Year Returns
as of December 31 each year
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads The performance results do not reflect any Policy-related fees and expenses, which would reduce the performance results.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock In the period shown in the chart, the highest quarterly return was 29.37% (the second quarter of 2009) and the lowest quarterly return was -30.17% (the fourth quarter of 2008).
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns

as of December 31, 2017
Ivy VIP Micro Cap Growth | Class I  
Risk/Return: rr_RiskReturnAbstract  
Shareholder Fees (fees paid directly from your investment) rr_ShareholderFeeOther
Management Fees rr_ManagementFeesOverAssets 0.95%
Distribution and Service (12b-1) Fees rr_DistributionAndService12b1FeesOverAssets none
Other Expenses rr_OtherExpensesOverAssets 0.12%
Total Annual Portfolio Operating Expenses rr_ExpensesOverAssets 1.07% [1],[2]
1 Year rr_ExpenseExampleYear01 $ 109
3 Years rr_ExpenseExampleYear03 340
5 Years rr_ExpenseExampleYear05 590
10 Years rr_ExpenseExampleYear10 1,306
1 Year rr_ExpenseExampleNoRedemptionYear01 109
3 Years rr_ExpenseExampleNoRedemptionYear03 340
5 Years rr_ExpenseExampleNoRedemptionYear05 590
10 Years rr_ExpenseExampleNoRedemptionYear10 1,306
Ivy VIP Micro Cap Growth | Class II  
Risk/Return: rr_RiskReturnAbstract  
Shareholder Fees (fees paid directly from your investment) rr_ShareholderFeeOther
Management Fees rr_ManagementFeesOverAssets 0.95%
Distribution and Service (12b-1) Fees rr_DistributionAndService12b1FeesOverAssets 0.25%
Other Expenses rr_OtherExpensesOverAssets 0.12%
Total Annual Portfolio Operating Expenses rr_ExpensesOverAssets 1.32% [1],[2]
1 Year rr_ExpenseExampleYear01 $ 134
3 Years rr_ExpenseExampleYear03 418
5 Years rr_ExpenseExampleYear05 723
10 Years rr_ExpenseExampleYear10 1,590
1 Year rr_ExpenseExampleNoRedemptionYear01 134
3 Years rr_ExpenseExampleNoRedemptionYear03 418
5 Years rr_ExpenseExampleNoRedemptionYear05 723
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,590
2008 rr_AnnualReturn2008 (48.04%)
2009 rr_AnnualReturn2009 41.29%
2010 rr_AnnualReturn2010 40.85%
2011 rr_AnnualReturn2011 (7.01%)
2012 rr_AnnualReturn2012 11.84%
2013 rr_AnnualReturn2013 57.28%
2014 rr_AnnualReturn2014 (1.74%)
2015 rr_AnnualReturn2015 (9.16%)
2016 rr_AnnualReturn2016 13.29%
2017 rr_AnnualReturn2017 8.83%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel highest quarterly return
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 29.37%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel lowest quarterly return
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (30.17%)
1 Year rr_AverageAnnualReturnYear01 8.83%
5 Years rr_AverageAnnualReturnYear05 11.60%
10 Years rr_AverageAnnualReturnYear10 6.41%
Ivy VIP Micro Cap Growth | Russell 2000 Growth Index (reflects no deduction for fees, expenses or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 22.17%
5 Years rr_AverageAnnualReturnYear05 15.21%
10 Years rr_AverageAnnualReturnYear10 9.19%
Ivy VIP Micro Cap Growth | Russell Microcap Growth Index (reflects no deduction for fees, expenses or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 16.65%
5 Years rr_AverageAnnualReturnYear05 13.82%
10 Years rr_AverageAnnualReturnYear10 7.23%
Ivy VIP Micro Cap Growth | Lipper Variable Annuity Small-Cap Growth Funds Universe Average (net of fees and expenses)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 24.34%
5 Years rr_AverageAnnualReturnYear05 14.40%
10 Years rr_AverageAnnualReturnYear10 8.69%
[1] The Total Annual Portfolio Operating Expenses ratio shown above does not correlate to the expense ratio shown in the Financial Highlights table because it has been restated to reflect a change in the Portfolio’s contractual class waiver.
[2] Through April 30, 2019, Ivy Distributors, Inc. (IDI), the Portfolio’s distributor, and/or Waddell & Reed Services Company (doing business as WI Services Company (WISC)), the Portfolio’s transfer agent, have contractually agreed to reimburse sufficient fees to ensure that the total annual ordinary portfolio operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) of the Class I shares are at all times equal to the total annual ordinary portfolio operating expenses of the Class II shares less 0.25%, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees.
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