Ivy Funds

Supplement dated June 4, 2012 to the

Ivy Funds Prospectus

dated July 29, 2011

and as supplemented August 18, 2011, August 31, 2011, November 16, 2011,

February 17, 2012, April 24, 2012 and May 8, 2012

Effective June 4, 2012, The Bank of New York Mellon will become the custodian and foreign custody manager, respectively for each Fund. Accordingly, the reference in this Prospectus on page 258 to UMB Bank, n.a., is deleted and replaced with The Bank of New York Mellon, which is located at One Wall Street, New York, NY 10286, effective as of that date.

The Annual Fund Operating Expenses table in the “Fees and Expenses” section on page 75 for Ivy Global Income Allocation Fund is deleted and replaced with the following:

Annual Fund Operating Expenses

(expenses that you pay each year as a % of the value of your investment)	Class A		Class B		Class C		Class E		Class I		Class Y
Management Fees		0.70%		0.70%		0.70%		0.70%		0.70%		0.70%
Distribution and Service (12b-1) Fees		0.25%		1.00%		1.00%		0.25%		0.00%		0.25%
Other Expenses		0.49%		0.71%		0.40%		1.10%		0.29%		0.30%
Total Annual Fund Operating Expenses		1.44%		2.41%		2.10%		2.05%		0.99%		1.25%
Fee Waiver and/or Expense Reimbursement2		0.09%		0.11%		0.08%		0.72%		0.08%		0.08%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement		1.35%		2.30%		2.02%		1.33%		0.91%		1.17%

¹  For Class B shares, the contingent deferred sales charge (CDSC) declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

²  Through July 31, 2013, Ivy Investment Management Company (IICO), the Fund’s investment manager, Ivy Funds Distributor, Inc. (IFDI), the Fund’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Fund’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the expenses for Class A shares at 1.35%, Class B shares at 2.30%, Class C shares at 2.02%, Class E shares at 1.33%, Class I shares at 0.91% and Class Y shares at 1.17%. Prior to that date, the expense limitation may not be terminated by IICO, IFDI, WISC or the Board of Trustees.

The Example table in the “Fees and Expenses” section on pages 75-76 for Ivy Global Income Allocation Fund is deleted and replaced with the following:

Example

This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A Shares	$	705	$	996	$	1,309	$	2,193
Class B Shares		633		1,041		1,376		2,497
Class C Shares		205		650		1,122		2,425
Class E Shares		723		1,175		1,652		2,963
Class I Shares		93		307		539		1,206
Class Y Shares		119		389		679		1,504

You would pay the following expenses if you did not redeem your shares:

	1 Year		3 Years		5 Years		10 Years
Class A Shares	$	705	$	996	$	1,309	$	2,193
Class B Shares		233		741		1,276		2,497
Class C Shares		205		650		1,122		2,425
Class E Shares		723		1,175		1,652		2,963
Class I Shares		93		307		539		1,206
Class Y Shares		119		389		679		1,504

Supplement Prospectus 1

The “Indexes” section of the Average Annual Total Returns table in the “Performance” section on page 78 for Ivy Global Income Allocation Fund is deleted and replaced with the following:

Average Annual Total Returns

as of December 31, 2010	1 Year		5 Years		10 Years (or Life of Class)
Indexes
J.P. Morgan Non-U.S. Government Bond Index (reflects no deduction for fees, expenses or taxes)		6.78%		8.01%		7.64%
MSCI AC World ex U.S.A. Index (reflects no deduction for fees, expenses or taxes)		11.15%		4.82%		5.54%
60% MSCI World High Dividend Yield Index/40% Barclays Multiverse Index (reflects no deduction for fees, expenses or taxes) (The Fund’s benchmark changed from J.P. Morgan Non-U.S. Government Bond Index and MSCI AC World ex U.S.A. Index, effective June 2012. IICO believes that the 60% MSCI World High Dividend Yield Index/40% Barclays Multiverse Index provides a better benchmark for the Fund in light of the types of securities in which the Fund invests.)		6.44%		4.45%		5.66%
Lipper Mixed-Asset Target Allocation Growth Funds Universe Average (net of fees and expenses)		12.78%		3.32%		3.13%

The following replaces the sentence under the “Portfolio Manager” section on page 78 for Ivy Global Income Allocation Fund:

John C. Maxwell, Senior Vice President of IICO, has managed the Fund since April 2009, and W. Jeffery Surles, Assistant Vice President of IICO, has managed the Fund since June 2012.

The following is added at the end of the second paragraph under the section entitled “Additional Information about Principal Investment Strategies, Other Investments and Risks — Ivy Global Income Allocation Fund:” on page 148:

During normal market conditions, the Fund invests at least 65% of its total assets in issuers of at least three countries, which may include the U.S.

The following replaces the paragraph of the “The Management of the Funds — Portfolio Management” section on page 169 for Ivy Global Income Allocation Fund and Ivy International Core Equity Fund:

Ivy Global Income Allocation Fund: John C. Maxwell and W. Jeffery Surles are primarily responsible for the day-to-day management of Ivy Global Income Allocation Fund. Mr. Maxwell has held his Fund responsibilities since April 15, 2009, when IICO assumed direct investment management responsibilities of the Fund’s portfolio from Templeton Investment Counsel, LLC, the Fund’s former investment subadvisor. He is Senior Vice President of IICO and WRIMCO, Vice President of the Trust and portfolio manager of other investment companies for which WRIMCO serves as investment manager. He joined WRIMCO, an affiliate of IICO, in 1998 initially serving as an investment analyst and has served as assistant portfolio manager for funds managed by IICO and WRIMCO since July 2003. In 2004, Mr. Maxwell began assisting the international group of IICO as an investment analyst. Mr. Maxwell earned a BS degree from the University of Kentucky, and an MBA from the Johnson Graduate School of Management, Cornell University. He is a Chartered Financial Analyst.

Mr. Surles has held his Fund responsibilities for Ivy Global Income Allocation Fund since June 2012. He is Assistant Vice President of IICO and WRIMCO. He joined WRIMCO in 2007 initially serving as an investment analyst. Mr. Surles earned a BS degree from Vanderbilt University, and an MBA from the University of Wisconsin. He is a Chartered Financial Analyst.

The following is added as a new paragraph of the “The Management of the Funds — Portfolio Management” section on page 169 for Ivy International Core Equity Fund:

Ivy International Core Equity Fund: John C. Maxwell is primarily responsible for the day-to-day management of Ivy International Core Equity Fund and has held his Fund responsibilities since February 2006. He is also a portfolio manager for Ivy Global Income Allocation Fund, and his biographical information is listed in the disclosure for Ivy Global Income Allocation Fund.

2 Prospectus Supplement