UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-6569

IVY FUNDS

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

Mara D. Herrington

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)

Registrant’s telephone number, including area code: 913-236-2000

Date of fiscal year end: March 31

Date of reporting period: March 31, 2014

ITEM 1.     REPORTS TO STOCKHOLDERS.

1

Annual Report

March 31, 2014

Ivy Funds

Ivy Asset Strategy Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Global Natural Resources Fund

Ivy Global Real Estate Fund

Ivy Global Risk-Managed Real Estate Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

 

CONTENTS

Ivy Funds

President’s Letter	3
Illustration of Fund Expenses	4
Management Discussion, Portfolio Highlights and Schedule of Investments:
Ivy Asset Strategy Fund	7
Ivy Balanced Fund	21
Ivy Energy Fund	31
Ivy Global Natural Resources Fund	37
Ivy Global Real Estate Fund	43
Ivy Global Risk-Managed Real Estate Fund	49
Ivy Real Estate Securities Fund	55
Ivy Science and Technology Fund	60
Statements of Assets and Liabilities	67
Statements of Operations	68
Statements of Changes in Net Assets	69
Financial Highlights	72
Notes to Financial Statements	88
Report of Independent Registered Public Accounting Firm	105
Income Tax Information	106
Board of Trustees and Officers	107
Annual Privacy Notice	110
Proxy Voting Information	111
Quarterly Portfolio Schedule Information	111
Householding Notice	111
IRA Disclosure	111

This report is submitted for the general information of the shareholders of Ivy Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by a current Ivy Funds prospectus, or summary prospectus, and current performance information, including current Lipper ranking information.

2 ANNUAL REPORT 2014

PRESIDENT’S LETTER

Ivy Funds MARCH 31, 2014 (UNAUDITED)

Henry J. Herrmann, CFA

Dear Shareholder,

The fiscal year proved to be a strong period for equities. The broad market indexes finished the fiscal year near record highs with the S&P 500 Index closing approximately 20% higher. As we entered 2014, the equity market became a bit more volatile, but for the bulk of the period returns were positive. Over the period, for the first time since the 2008 downturn, we saw money flow from bonds to equities rather than vice versa — driving equity market performance. On the other hand, fixed-income markets were challenged amid Federal Reserve policy uncertainty and concerns surrounding inflation and economic growth. Bonds appear relatively expensive generally. The benchmark 10-year Treasury ended the fiscal year yielding 2.73%, compared with 1.87% at the start of the year. As yields increased, prices decreased, resulting in a negative return on the 10-year Treasury of 3.8%.

Given the uncertain environment that has become the norm in recent years, we are now at a point where some have begun to express concern about equity valuations. Although we believe any major concern about valuations is misguided, we also recognize there are challenges ahead. While we see a positive environment for equities, the process of interest rate normalization has begun and will continue to have an impact on markets. The implementation of the Affordable Care Act also has the potential to present challenges that we believe may influence both hiring and consumer spending. Overall, however, we believe the U.S. economic recovery will move ahead at a moderate pace. As the Federal Reserve winds down its bond buying program, and if the economy normalizes over the coming year, we are likely to see interest rates rise.

Internationally, headwinds continue to varying degrees in China, Japan and Europe, while tensions remain high in the Middle East. We remain relatively cautious on emerging markets as negative current accounts, dwindling foreign investment flows and decreases in commodity prices will likely stunt growth. We will continue to closely monitor these events and others as the year unfolds with an eye on the risks, and opportunities, that they present.

Economic Snapshot

	3/31/14		3/31/13
S&P 500 Index		1,872.34		1,569.19
MSCI EAFE Index		1,915.69		1,674.30
10-Year Treasury Yield		2.73%		1.87%
U.S. unemployment rate		6.7%		7.5%
30-year fixed mortgage rate		4.65%		3.89%
Oil price per barrel	$	101.58	$	97.23

Sources: Bloomberg, U.S. Department of Labor, CME

All government statistics shown are subject to periodic revision. The S&P 500 Index is an unmanaged index that tracks the stocks of 500 primarily large-cap U.S. companies. MSCI EAFE Index is an unmanaged index comprised of securities that represent the securities markets in Europe, Australasia and the Far East. Citigroup Broad Investment Grade Index is an unmanaged index comprised of securities that represent the bond market. Annualized yield to maturity is the rate of return anticipated on a bond if it is held until the maturity date. It is not possible to invest directly in any of these indexes. Mortgage rates are from BankRate and reflect the overnight national average rate on a conventional 30-year fixed loan. Oil prices reflect the market price of West Texas intermediate grade crude.

As always, we thank you for your continued trust and partnership, and encourage you to maintain a focus on your long-term financial goals.

Respectfully,

Henry J. Herrmann, CFA

President

The opinions expressed in this letter are those of the President of the Ivy Funds and are current only through the end of the period of the report, as stated on the cover. The President’s views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.

2014 ANNUAL REPORT 3

ILLUSTRATION OF FUND EXPENSES

Ivy Funds      (UNAUDITED)

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution and service fees, and other Fund expenses. The following table is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six-month period ended March 31, 2014.

Actual Expenses

The first section in the following table provides information about actual account values and actual expenses for each share class. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $7,500 account value divided by $1,000 = 7.5), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. There may be additional fees charged to holders of certain accounts that are not included in the expenses shown in the table. These fees apply to Individual Retirement Accounts (IRAs), IRA Rollovers, Roth IRAs, Conversion Roth IRAs, Simplified Employee Pension (SEP), Simple IRAs, Tax-Sheltered Accounts (TSAs), Keogh Plans, Owner Only 401(k) (Exclusive K) Plans and Final Pay Plans. As of the close of the six months covered by the table, a customer is charged an annual fee of $18 within each plan type. This fee is waived for IRA Rollovers and Conversion Roth IRAs if the customer owns another type of IRA. Coverdell Education Savings Account plans are charged an annual fee of $10 per customer. You should consider the additional fees that were

charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value as such additional expenses are not reflected in the information provided in the following table. Additional fees have the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

The second section in the following table provides information about hypothetical account values and hypothetical expenses for each share class based on the Fund’s actual expense ratio and an assumed rate of return of five percent per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this five percent hypothetical example with the five percent hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second section in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expenses paid may be impacted by expense reduction arrangements. If those arrangements had not been in place, expenses paid would have been higher. See Note 7 to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 9-30-13		Ending Account Value 3-31-14		Expenses Paid During Period*		Beginning Account Value 9-30-13		Ending Account Value 3-31-14		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Asset Strategy Fund
Class A	$	1,000	$	1,081.90	$	5.00	$	1,000	$	1,020.16	$	4.85		0.96%
Class B**	$	1,000	$	1,077.80	$	8.73	$	1,000	$	1,016.50	$	8.47		1.69%
Class C	$	1,000	$	1,077.90	$	8.62	$	1,000	$	1,016.60	$	8.37		1.67%
Class E	$	1,000	$	1,081.40	$	5.20	$	1,000	$	1,019.94	$	5.05		1.00%
Class I	$	1,000	$	1,083.00	$	3.75	$	1,000	$	1,021.29	$	3.64		0.73%
Class R	$	1,000	$	1,080.00	$	6.86	$	1,000	$	1,018.30	$	6.66		1.33%
Class Y	$	1,000	$	1,082.10	$	5.00	$	1,000	$	1,020.16	$	4.85		0.96%
Ivy Balanced Fund
Class A	$	1,000	$	1,076.70	$	5.92	$	1,000	$	1,019.27	$	5.75		1.13%
Class B**	$	1,000	$	1,072.60	$	9.64	$	1,000	$	1,015.61	$	9.37		1.87%
Class C	$	1,000	$	1,072.80	$	9.43	$	1,000	$	1,015.85	$	9.17		1.82%
Class E***	$	1,000	$	1,077.60	$	5.09	$	1,000	$	1,020.03	$	4.95		0.98%
Class I	$	1,000	$	1,078.20	$	4.47	$	1,000	$	1,020.59	$	4.34		0.87%
Class R	$	1,000	$	1,074.90	$	7.57	$	1,000	$	1,017.60	$	7.36		1.47%
Class Y	$	1,000	$	1,076.80	$	5.82	$	1,000	$	1,019.36	$	5.65		1.12%

See footnotes on page 6.

4 ANNUAL REPORT 2014

ILLUSTRATION OF FUND EXPENSES

Ivy Funds      (UNAUDITED)

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 9-30-13		Ending Account Value 3-31-14		Expenses Paid During Period*		Beginning Account Value 9-30-13		Ending Account Value 3-31-14		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Energy Fund
Class A	$	1,000	$	1,085.50	$	8.34	$	1,000	$	1,016.98	$	8.07		1.60%
Class B**	$	1,000	$	1,081.70	$	12.07	$	1,000	$	1,013.32	$	11.68		2.33%
Class C	$	1,000	$	1,082.90	$	11.04	$	1,000	$	1,014.28	$	10.68		2.14%
Class E***	$	1,000	$	1,087.50	$	6.37	$	1,000	$	1,018.80	$	6.16		1.23%
Class I	$	1,000	$	1,088.10	$	5.85	$	1,000	$	1,019.34	$	5.65		1.12%
Class R	$	1,000	$	1,084.90	$	8.97	$	1,000	$	1,016.37	$	8.67		1.72%
Class Y	$	1,000	$	1,086.70	$	7.09	$	1,000	$	1,018.09	$	6.86		1.37%
Ivy Global Natural Resources Fund
Class A	$	1,000	$	1,071.40	$	8.08	$	1,000	$	1,017.13	$	7.87		1.57%
Class B**	$	1,000	$	1,066.50	$	12.30	$	1,000	$	1,013.02	$	11.98		2.39%
Class C	$	1,000	$	1,067.60	$	11.17	$	1,000	$	1,014.16	$	10.88		2.16%
Class E	$	1,000	$	1,072.60	$	6.63	$	1,000	$	1,018.55	$	6.46		1.27%
Class I	$	1,000	$	1,073.90	$	5.60	$	1,000	$	1,019.55	$	5.45		1.08%
Class R	$	1,000	$	1,070.90	$	8.70	$	1,000	$	1,016.53	$	8.47		1.68%
Class Y	$	1,000	$	1,072.50	$	6.84	$	1,000	$	1,018.32	$	6.66		1.33%
Ivy Global Real Estate Fund
Class A	$	1,000	$	1,026.90	$	7.60	$	1,000	$	1,017.41	$	7.57		1.51%
Class B**	$	1,000	$	1,020.00	$	13.64	$	1,000	$	1,011.43	$	13.58		2.71%	(3)
Class C	$	1,000	$	1,021.40	$	13.54	$	1,000	$	1,011.52	$	13.48		2.69%	(4)
Class I	$	1,000	$	1,026.40	$	8.81	$	1,000	$	1,016.27	$	8.77		1.74%	(5)
Class R	$	1,000	$	1,024.00	$	11.44	$	1,000	$	1,013.63	$	11.38		2.27%	(6)
Class Y	$	1,000	$	1,027.30	$	7.60	$	1,000	$	1,017.41	$	7.57		1.51%
Ivy Global Risk-Managed Real Estate Fund
Class A	$	1,000	$	1,038.90	$	7.65	$	1,000	$	1,017.41	$	7.57		1.51%
Class B**	$	1,000	$	1,033.50	$	12.91	$	1,000	$	1,012.27	$	12.78		2.54%	(7)
Class C	$	1,000	$	1,033.60	$	12.91	$	1,000	$	1,012.25	$	12.78		2.54%	(8)
Class I	$	1,000	$	1,037.90	$	8.36	$	1,000	$	1,016.72	$	8.27		1.65%	(9)
Class R	$	1,000	$	1,034.50	$	11.49	$	1,000	$	1,013.66	$	11.38		2.26%	(10)
Class Y	$	1,000	$	1,038.00	$	7.64	$	1,000	$	1,017.43	$	7.57		1.50%
Ivy Real Estate Securities Fund
Class A	$	1,000	$	1,087.40	$	8.14	$	1,000	$	1,017.13	$	7.87		1.56%
Class B**	$	1,000	$	1,082.40	$	13.43	$	1,000	$	1,012.05	$	12.98		2.58%
Class C	$	1,000	$	1,083.50	$	11.88	$	1,000	$	1,013.54	$	11.48		2.28%
Class E	$	1,000	$	1,087.50	$	8.66	$	1,000	$	1,016.59	$	8.37		1.67%
Class I	$	1,000	$	1,090.30	$	5.33	$	1,000	$	1,019.82	$	5.15		1.02%
Class R	$	1,000	$	1,087.50	$	8.66	$	1,000	$	1,016.63	$	8.37		1.67%
Class Y	$	1,000	$	1,089.50	$	6.58	$	1,000	$	1,018.62	$	6.36		1.27%

See footnotes on page 6.

2014 ANNUAL REPORT 5

ILLUSTRATION OF FUND EXPENSES

Ivy Funds      (UNAUDITED)

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 9-30-13		Ending Account Value 3-31-14		Expenses Paid During Period*		Beginning Account Value 9-30-13		Ending Account Value 3-31-14		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Science and Technology Fund
Class A	$	1,000	$	1,137.70	$	6.63	$	1,000	$	1,018.75	$	6.26		1.24%
Class B**	$	1,000	$	1,133.40	$	10.67	$	1,000	$	1,014.89	$	10.07		2.01%
Class C	$	1,000	$	1,133.80	$	10.46	$	1,000	$	1,015.18	$	9.87		1.96%
Class E	$	1,000	$	1,136.60	$	7.58	$	1,000	$	1,017.80	$	7.16		1.43%
Class I	$	1,000	$	1,139.20	$	5.24	$	1,000	$	1,020.05	$	4.95		0.98%
Class R	$	1,000	$	1,135.80	$	8.44	$	1,000	$	1,017.06	$	7.97		1.58%
Class Y	$	1,000	$	1,137.70	$	6.20	$	1,000	$	1,019.10	$	5.86		1.17%

* Fund expenses for each share class are equal to the Fund’s annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 182 days in the six-month period ended March 31, 2014, and divided by 365.

** These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

***Class share is closed to investment.

(1) This section uses the Fund’s actual total return and actual Fund expenses. It is a guide to the actual expenses paid by the Fund in the period. The “Ending Account Value” shown is computed using the Fund’s actual return and the “Expenses Paid During Period” column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the last column of this section.

(2) This section uses a hypothetical five percent annual return and actual Fund expenses. It helps to compare the Fund’s ongoing costs with other mutual funds. A shareholder can compare the Fund’s ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

(3) Annualized expense ratio based on the period excluding offering cost was 2.40%.

(4) Annualized expense ratio based on the period excluding offering cost was 2.39%.

(5) Annualized expense ratio based on the period excluding offering cost was 1.43%.

(6) Annualized expense ratio based on the period excluding offering cost was 1.99%.

(7) Annualized expense ratio based on the period excluding offering cost was 2.15%.

(8) Annualized expense ratio based on the period excluding offering cost was 2.15%.

(9) Annualized expense ratio based on the period excluding offering cost was 1.27%.

(10) Annualized expense ratio based on the period excluding offering cost was 1.88%.

The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads, or exchange fees.

6 ANNUAL REPORT 2014

MANAGEMENT DISCUSSION

Ivy Asset Strategy Fund (UNAUDITED)

Michael L. Avery

Ryan F. Caldwell

Below, Michael L. Avery and Ryan F. Caldwell, portfolio managers of the Ivy Asset Strategy Fund, discuss positioning, performance and results for the fiscal year ended March 31, 2014. Mr. Avery has managed the Fund for 17 years and has 35 years of industry experience. Mr. Caldwell has managed the Fund for seven years and has 16 years of industry experience.

Fiscal Year Performance

For the 12 Months Ended March 31, 2014
Ivy Asset Strategy Fund (Class A shares at net asset value)	17.47%
Ivy Asset Strategy Fund (Class A shares including sales charges)	10.71%
Benchmark(s) and/or Lipper Category
S&P 500 Index	21.86%
(generally reflects the performance of large- and medium-size U.S. stocks)
Barclays U.S. Aggregate Bond Index	–0.10%
(generally reflects the performance of most U.S.-traded investment-grade bonds)
Barclays U.S. Treasury Bills: 1-3 Month Index	0.04%
(generally reflects the performance of investment-grade Treasury bills, representing cash)
Lipper Global Flexible Portfolio Funds Universe Average	6.70%
(generally reflects the performance of the universe of funds with similar investment objectives)

Multiple indexes are shown because the Fund invests in multiple asset classes.

Please note that Fund returns include applicable fees and expenses while index returns do not include any such fees. The performance discussion below is at net asset value.

Showing potential for more global growth

The U.S. Federal Reserve (Fed) kept financial markets on their toes during the fiscal year ended March 31, 2014. In anticipation of an improving U.S. economy, the Fed’s decision in May 2013 to “taper” its bond-buying program was the highlight. The remainder of the year brought turmoil in the emerging markets in reaction to the Fed taper, inconclusive economic data and a U.S. government shutdown followed by a budget agreement. Despite these events, the long-term effect on market sentiment appears to have been relatively modest; bond yields initially increased and then settled in a range of 2.6% to 2.9%, while equity markets largely looked past them and moved to record highs.

The Fed later implemented a reduction in its bond purchases, tapering from $85 billion to $75 billion per month in a small step toward reducing economic stimulus while maintaining its accommodative monetary policy stance. The Fed added it would not raise interest rates until after unemployment falls well below 6.5%, but emphasized that level was not a trigger for rate hikes. Then in early 2014, the Fed dropped its link between interest rates and an unemployment rate threshold, saying it instead would consider a range of factors to determine how long to keep rates low. It again reduced the pace of its bond-buying program, taking it to $55 billion per month.

Global economic growth in general remained slow, but the U.S. and more recently Europe began to improve. Moderate gains in consumer spending and business investment along with improvements in productivity and a slowly recovering housing sector all contributed to the U.S. recovery. The labor markets also showed progress, with continued gains in job growth and unemployment declining from 7.5% to 6.5%.

The economic landscape remained mixed elsewhere. Europe’s sovereign debt crisis returned as an issue early in the fiscal year as Greece struggled to address austerity demands and Spain faced difficulties in its banking system. Fears also resurfaced about an economic slowdown in China. In spite of the concerns, recession in the eurozone — which had reported declining gross domestic product (GDP) for six consecutive quarters — ended in the second quarter of the year. In addition, China’s GDP ultimately grew an estimated 7.6% in 2013, but is forecast to be lower in 2014, partly because of ambitious reforms announced in 16 major areas and a target of 2020 for “decisive” results. GDP growth in Japan was better than expected during the year, rising about 1.7% with support from Prime Minister Shinzo Abe’s plan to end deflation and boost economic growth. The effects of the reforms slowed in late 2013 and could generate market concerns if they do not show the intended results of higher inflation and growth.

Geopolitics took center stage in early 2014 after protests in Ukraine led to violence and a change in leadership there. Russia then moved to annex Crimea — home to Russia’s Black Sea naval fleet and key ports — from Ukraine via a referendum vote of the largely Russian population in Crimea. The U.S. and European Union followed with economic sanctions on Russia because of its actions against the Ukrainian territory.

Given the macro environment, investors continue to closely monitor global monetary and fiscal policy actions and their impact on markets. For now, the risks of uncertainty from both have lessened and market prices have reacted accordingly.

Emphasis on equities delivers strong year

The Fund reported strong performance for the fiscal year, although it trailed the return of its all-equities benchmark, the S&P 500 Index. We maintained a dominant allocation to equities as we entered the fiscal year, based on our ongoing belief that they provided more attractive relative value compared with other asset classes, including investment-grade and sovereign fixed income securities. Our view of the market cycle and changing equity market fundamentals then caused us to begin slowly reducing the number of equity holdings in the Fund, although the overall

2014 ANNUAL REPORT 7

MANAGEMENT DISCUSSION

Ivy Asset Strategy Fund (UNAUDITED)

allocation to equities remained elevated through the calendar year. We also began to move from a highly concentrated portfolio of about 45 equity positions to a broader mix of 92 positions by the end of 2013. As we entered 2014, our focus on market fundamentals such as relative stock valuations, equity-risk premiums and correlations prompted us to begin to re-concentrate the portfolio. We reduced the number of equity holdings during the final quarter of the fiscal year and ended with 76 positions. We continued to focus on companies that we view as growing, innovating, improving margins, returning capital through dividend growth or share buybacks, and offering what we consider sustainable high free cash flow.

The Fund’s cash position throughout the fiscal year allowed us to pursue opportunities we believed to be attractive at the company, sector or country level and reflected our willingness to be patient as we assessed opportunities. It also reflected our concerns about investor sentiment and expanding valuation multiples without much improvement in market outlook. For the fiscal year, the cash allocation negatively affected the overall performance of the Fund.

Although we do not target sector weightings, our investment process led to a substantial overweight during the year in consumer discretionary stocks, compared with the benchmark.

This allocation is a by-product of our investments in gaming, primarily in Macau, and media. The Macau-related gaming operators — Galaxy Entertainment Group Limited, Sands China Ltd. and Wynn Resorts, Limited — were the largest contributors to the Fund’s performance for the year. The Fund also continued its focus on businesses benefitting from consumption by the expanding middle-class populations across the emerging markets, especially in the Asia-Pacific region.

The Fund maintained a position in gold throughout the fiscal year of approximately 6% to 8%, although a good portion of that allocation was hedged at times using short gold futures. The price of gold fell by about 30% during the fiscal year and our hedging activities were not able to fully manage that decline. Our allocation to gold was the largest detractor from overall performance for the year. However, we continue to invest in gold as a hedge against aggressive monetary policy. We think such policy is likely to continue around the world in the wake of low inflation and modest global growth prospects.

For most of the year, we used derivatives to increase the equity exposure of the Fund. Equity derivatives usage was a contributor to performance for the fiscal year as a whole. The use of equity derivatives remained a small portion of the overall portfolio at the end of the period.

Improving economies, global outlook

We will remain alert to market developments and their impact as the year progresses. In the face of ongoing monetary stimulus, global stock markets also have continued to re-price risk. We think that is evident in rising valuations, decreasing correlations, decreasing volatility and other metrics. While equities may be a less compelling investment choice than earlier in the cycle, we continue to prefer them in relative value terms. We will keep the Fund positioned to seek to take advantage of potential opportunities in equities and fixed income that are appropriately priced for their level of risk.

We expect slow but better growth and low inflation in the U.S. in 2014 with continued aggressive monetary policy, given ongoing softness in the labor market and the outlook for inflation. We believe a growing labor force, support for productivity through new technology and growing access to low-cost energy are supportive factors for U.S. GDP.

As we analyze where growth will come from in the mid to long term, we have maintained our theme related to the growth in domestic consumption in emerging markets. We believe there still are opportunities to participate in the rising prosperity of these populations, especially across Asia.

Performance shown at NAV does not include the effect of sales charges. If reflected, the performance shown would have been lower. Performance including sales charges reflects the maximum applicable front-end sales load.

Past performance is not a guarantee of future results. As with any mutual fund, the value of the Fund’s shares will change, and you could lose money on your investment.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

The Fund may allocate from 0 to 100% of its assets between stocks, bonds and short-term instruments of issuers around the globe, as well as investments in precious metals and investments with exposure to various foreign securities.

International investing involves additional risks, including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. The value of the Fund’s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. These and other risks are more fully described in the Fund’s prospectus.

Fixed-income securities are subject to interest-rate risk and, as such, the net asset value of the Fund may fall as interest rates rise. Investing in high-income securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds.

The Fund may focus its investments in certain regions or industries, thereby increasing its potential vulnerability to market volatility.

8 ANNUAL REPORT 2014

The Fund may seek to hedge market risk on various securities, manage exposure to various foreign currencies, precious metals and various markets, and seek to hedge certain event risks on positions held by the Fund. Such hedging involves additional risks, as the fluctuations in the values of the derivatives may not correlate perfectly with the overall securities markets or with the underlying asset from which the derivative’s value is derived.

Investing in commodities is generally considered speculative because of the significant potential for investment loss due to cyclical economic conditions, sudden political events, and adverse international monetary policies. Markets for commodities are likely to be volatile and the Fund may pay more to store and accurately value its commodity holdings than it does with the Fund’s other holdings.

The opinions expressed in this report are those of the portfolio managers and are current only through the end of the period of the report as stated on the cover. The managers’ views are subject to change at any time based on market and other conditions, and no forecasts can be guaranteed.

The indexes noted are unmanaged, include reinvested dividends and do not include fees. One cannot invest directly in an index, nor is an index representative of the Ivy Asset Strategy Fund’s performance.

2014 ANNUAL REPORT 9

PORTFOLIO HIGHLIGHTS

Ivy Asset Strategy Fund ALL DATA IS AS OF MARCH 31, 2014 (UNAUDITED)

Asset Allocation

Stocks	76.7%
Consumer Discretionary	32.6%
Financials	19.6%
Information Technology	9.1%
Health Care	4.1%
Energy	4.0%
Industrials	3.8%
Materials	1.3%
Consumer Staples	1.3%
Telecommunication Services	0.9%
Bullion (Gold)	6.6%
Purchased Options	0.2%
Bonds	3.6%
Corporate Debt Securities	3.1%
Loans	0.5%
United States Government and Government Agency Obligations	0.0%
Cash and Cash Equivalents	12.9%

Lipper Rankings

Category: Lipper Global Flexible Portfolio Funds	Rank	Percentile
1 Year	28/462	7
3 Year	37/277	14
5 Year	107/172	62
10 Year	4/70	6

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Country Weightings

North America	40.6%
United States	40.6%
Pacific Basin	26.9%
Japan	12.3%
Hong Kong	8.8%
China	5.2%
Other Pacific Basin	0.6%
Europe	12.8%
United Kingdom	5.3%
Germany	4.0%
Other Europe	3.5%
Bullion (Gold)	6.6%
Cash and Cash Equivalents and Options	13.1%

Top 10 Equity Holdings

Company	Country	Sector
Galaxy Entertainment Group	Hong Kong	Consumer Discretionary
Sands China Ltd.	China	Consumer Discretionary
Wynn Resorts Ltd.	United States	Consumer Discretionary
AIA Group Ltd.	Hong Kong	Financials
Delta Topco Ltd.	United Kingdom	Consumer Discretionary
Media Group Holdings LLC	United States	Consumer Discretionary
CBS Corp., Class B	United States	Consumer Discretionary
Nielsen Holdings N.V.	United States	Industrials
Sony Corp.	Japan	Consumer Discretionary
Mizuho Financial Group, Inc.	Japan	Financials

See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.

10 ANNUAL REPORT 2014

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT

Ivy Asset Strategy Fund (UNAUDITED)

Please note that the performance of the Fund’s other share classes will be greater or less than the performance shown above for Class A based on the differences in loads and fees paid by shareholders investing in the different classes.

(1) The value of the investment in the Fund is impacted by the sales load at the time of the investment and by the ongoing expenses of the Fund and assumes reinvestment of dividends and distributions.

Average Annual Total Return(2)	Class A		Class B(3)		Class C		Class E		Class I		Class R		Class Y
1-year period ended 3-31-14		10.71%		12.58%		16.59%		10.66%		17.72%		17.03%		17.47%
5-year period ended 3-31-14		10.86%		11.16%		11.35%		10.84%		12.43%		11.80%		12.19%
10-year period ended 3-31-14		11.27%		11.01%		11.09%		—		—		—		11.94%
Since inception of Class through 3-31-14(4)		—		—		—		8.21%		9.52%		5.93%		—

(2) Data quoted is past performance and is based on deduction of the maximum applicable sales load for each of the periods. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Please visit www.ivyfunds.com for the Fund’s most recent month-end performance. Class A and Class E shares carry a maximum front-end sales load of 5.75%. Class B and Class C shares carry a maximum contingent deferred sales charge (CDSC) of 5% and 1%, respectively (the Class C shares reflect no CDSC since it only applies to Class C shares redeemed within twelve months after purchase). Class I, Class R and Class Y shares are not subject to sales charges.

(3) Class B shares are not currently available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(4) 4-2-07 for Class E and Class I shares and 7-31-08 for Class R shares (the date on which shares were first acquired by shareholders).

Past performance is not necessarily indicative of future performance. Indexes are unmanaged. The performance graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Performance results may 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.

2014 ANNUAL REPORT 11

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) MARCH 31, 2014

COMMON STOCKS	Shares		Value
Advertising – 0.3%
Omnicom Group, Inc. (A)		1,444	$	104,820
Aerospace & Defense – 1.0%
Boeing Co. (The) (B)		1,990		249,662
Precision Castparts Corp.		491		123,979
				373,641
Airlines – 0.4%
Japan Airlines Corp. (C)		2,697		132,730
Application Software – 1.5%
Adobe Systems, Inc. (A)(B)		3,025		198,877
Intuit, Inc.		4,436		344,818
				543,695
Asset Management & Custody Banks – 2.2%
Apollo Global Management LLC		4,820		153,268
Blackstone Group L.P. (The)		11,393		378,828
KKR & Co. L.P.		10,639		242,990
				775,086
Auto Parts & Equipment – 1.0%
Continental AG (C)		1,474		353,013
Automobile Manufacturers – 3.5%
Bayerische Motoren Werke AG (B)(C)		2,987		376,958
DaimlerChrysler AG, Registered Shares (C)		3,075		290,549
Fuji Heavy Industries Ltd. (C)		11,746		317,720
Toyota Motor Corp. (C)		4,742		267,675
				1,252,902
Biotechnology – 1.9%
Amgen, Inc.		1,994		245,915
Biogen Idec, Inc. (A)		544		166,454
Gilead Sciences, Inc. (A)(B)		3,858		273,372
				685,741
Broadcasting – 1.9%
CBS Corp., Class B		10,751		664,437
Cable & Satellite – 0.8%
British Sky Broadcasting Group plc (C)		7,074		107,675
Comcast Corp., Class A		3,354		167,747
				275,422
Casinos & Gaming – 14.1%
Dynam Japan Holdings Co. Ltd. (C)		23,540		70,258
Galaxy Entertainment Group (C)(D)		229,601		1,996,594

COMMON STOCKS (Continued)	Shares		Value
Casinos & Gaming (Continued)
Las Vegas Sands, Inc.		2,053	$	165,831
Macau Legend Development Ltd. (A)(C)		130,504		108,690
Sands China Ltd. (C)		198,932		1,486,249
Wynn Resorts Ltd. (D)		5,551		1,233,141
				5,060,763
Computer Hardware – 0.9%
Apple, Inc. (B)		584		313,510
Consumer Electronics – 2.8%
Panasonic Corp. (C)		41,060		466,634
Sony Corp. (C)		28,495		544,420
				1,011,054
Diversified Banks – 6.7%
BNP Paribas (B)(C)		2,902		223,846
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (C)		70,614		387,912
Mizuho Financial Group, Inc. (C)		251,311		496,706
Societe Generale (C)		3,658		225,271
Sumitomo Mitsui Financial Group, Inc. (C)		10,969		468,555
Sumitomo Mitsui Trust Holdings, Inc. (C)		91,967		415,217
Wells Fargo & Co.		4,109		204,387
				2,421,894
Diversified Chemicals – 0.8%
Dow Chemical Co. (The) (B)		5,646		274,329
Electronic Equipment & Instruments – 0.5%
FUJIFILM Holdings Corp. (C)		6,963		186,927
Home Entertainment Software – 0.5%
Activision Blizzard, Inc.		7,933		162,159
Hotels, Resorts & Cruise Lines – 1.0%
Starwood Hotels & Resorts Worldwide, Inc.		4,397		349,969
Industrial Conglomerates – 0.8%
Hutchison Whampoa Ltd., Ordinary Shares (C)		20,625		273,085
Integrated Oil & Gas – 0.6%
Occidental Petroleum Corp.		2,358		224,723
Integrated Telecommunication Services – 0.2%
BT Group plc (C)		13,022		82,390

COMMON STOCKS (Continued)	Shares		Value
Internet Retail – 0.5%
Amazon.com, Inc. (A)(B)		548	$	184,548
Internet Software & Services – 1.0%
Tencent Holdings Ltd. (C)		5,111		355,479
Investment Banking & Brokerage – 2.1%
Goldman Sachs Group, Inc. (The)		2,165		354,768
Nomura Holdings, Inc. (C)		61,981		397,536
				752,304
IT Consulting & Other Services – 1.1%
Cognizant Technology Solutions Corp., Class A (A)		7,468		377,974
Life & Health Insurance – 4.6%
AIA Group Ltd. (C)		185,301		879,142
MetLife, Inc.		6,859		362,176
Ping An Insurance (Group) Co. of China Ltd., A Shares (C)		6,887		41,601
Prudential Financial, Inc.		4,069		344,415
				1,627,334
Managed Health Care – 0.3%
Humana, Inc.		809		91,145
Movies & Entertainment – 6.7%
Delta Topco Ltd. (A)(E)		718,555		833,351
Legend Pictures LLC (A)(D)(E)(M)		190		373,844
Media Group Holdings LLC (A)(D)(E)(M)		381		818,617
News Corp. Ltd., Class A		11,219		358,684
				2,384,496
Multi-Line Insurance – 2.9%
Allianz AG, Registered Shares (C)		2,496		421,886
American International Group, Inc.		6,676		333,887
Axa S.A. (C)		10,951		284,603
				1,040,376
Oil & Gas Exploration & Production – 0.9%
ConocoPhillips		4,524		318,298
Oil & Gas Refining & Marketing – 1.4%
Phillips 66		6,340		488,599
Oil & Gas Storage & Transportation – 1.1%
Plains GP Holdings L.P., Class A		13,699		383,287

12 ANNUAL REPORT 2014

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) MARCH 31, 2014

COMMON STOCKS (Continued)	Shares		Value
Pharmaceuticals – 1.9%
AstraZeneca plc (C)		2,152	$	139,077
Pfizer, Inc.		12,255		393,640
Roche Holdings AG, Genusscheine (C)		463		138,697
				671,414
Reinsurance – 1.1%
Swiss Re Ltd. (C)		4,167		386,302
Research & Consulting Services – 1.6%
Nielsen Holdings N.V.		12,645		564,356
Semiconductor Equipment – 1.1%
Applied Materials, Inc.		18,787		383,624
Semiconductors – 1.3%
Taiwan Semiconductor Manufacturing Co. Ltd. (C)		30,135		117,265
Texas Instruments, Inc.		7,548		355,892
				473,157
Specialty Chemicals – 0.5%
LyondellBasell Industries N.V., Class A		1,947		173,131
Systems Software – 1.2%
Microsoft Corp.		5,076		208,057
Oracle Corp. (B)		5,456		223,185
				431,242
Tobacco – 1.3%
Philip Morris International, Inc.		5,825		476,893
Wireless Telecommunication Service – 0.7%
NTT DoCoMo, Inc. (C)		15,044		237,291
TOTAL COMMON STOCKS – 76.7%			$	27,323,540
(Cost: $19,339,092)
PURCHASED OPTIONS	Number of Contracts (Unrounded)
Adobe Systems, Inc.,
Call $72.50, Expire 7–18–14, OTC (Ctrpty: Citibank N.A.)		5,412		733

PURCHASED OPTIONS (Continued)	Number of Contracts (Unrounded)		Value
Alliance Data Systems Corp.,
Call $290.00, Expires 6–20–14, OTC (Ctrpty: Societe Generale Bank)		1,275	$	982
Amazon.com, Inc.,
Call $380.00, Expires 5–16–14, OTC (Ctrpty: Bank of America N.A.)		2,467		950
Apple, Inc.:
Call $565.00, Expires 4–18–14, OTC (Ctrpty: Goldman Sachs International)		240		21
Call $505.00, Expires 10–17–14, OTC (Ctrpty: Goldman Sachs International)		960		4,849
Bayerische Motoren Werke AG,
Call EUR90.00, Expires 6–20–14, OTC (Ctrpty: Bank of America N.A.) (F)		5,970		3,364
BNP Paribas,
Call EUR60.00, Expires 12–19–14, OTC (Ctrpty: Bank of America N.A.) (F)		11,148		3,932
Boeing Co. (The),
Call $130.00, Expires 5–16–14, OTC (Ctrpty: Morgan Stanley & Co., Inc.)		5,568		1,030
CBS Corp., Class B:
Call $65.00, Expires 4–18–14, OTC (Ctrpty: Deutsche Bank AG)		9,946		298
Call $66.00, Expires 4–18–14, OTC (Ctrpty: Deutsche Bank AG)		9,946		249
ConocoPhillips,
Call $72.50, Expires 8–15–14, OTC (Ctrpty: JPMorgan Chase Bank N.A.)		13,524		1,731
DIRECTV,
Call $80.00, Expires 6–20–14, OTC (Ctrpty: Societe Generale Bank)		3,325		978

PURCHASED OPTIONS (Continued)	Number of Contracts (Unrounded)		Value
Dow Chemical Co. (The),
Call $50.00, Expires 6–20–14, OTC (Ctrpty: Citibank N.A.)		11,934	$	1,754
FTSE 100 Index,
Call GBP6,700.00, Expires 6–20–14, OTC (Ctrpty: Barclays Bank plc) (F)		4,767		6,065
Gilead Sciences, Inc.,
Call $90.00, Expires 5–16–14, OTC (Ctrpty: Barclays Bank plc)		10,740		118
Google, Inc., Class A,
Call $1,200.00, Expires 6–20–14, OTC (Ctrpty: UBS AG)		796		1,894
Hewlett-Packard Co.,
Call $34.00, Expires 6–20–14, OTC (Ctrpty: JPMorgan Chase Bank N.A.)		19,914		2,200
Nikkei 225 Index:
Call JPY15,250.00, Expires 4–11–14, OTC (Ctrpty: UBS AG) (F)		5,563		4,581
Call JPY15,750.00, Expires 4–11–14, OTC (Ctrpty: UBS AG) (F)		398		69
Call JPY15,500.00, Expires 6–13–14, OTC (Ctrpty: UBS AG) (F)		4,768		15,707
Call JPY16,500.00, Expires 6–13–14, OTC (Ctrpty: Bank of America N.A.) (F)		2,389		2,546
Oracle Corp.,
Call $41.00, Expires 5–16–14, OTC (Ctrpty: Bank of America N.A.)		23,874		2,614
QUALCOMM, Inc.,
Call $82.50, Expires 6–20–14, OTC (Ctrpty: Citibank N.A.)		11,152		1,221

2014 ANNUAL REPORT 13

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) MARCH 31, 2014

PURCHASED OPTIONS (Continued)	Number of Contracts (Unrounded)		Value
Roche Holdings AG, Genusscheine,
Call CHF280.00, Expires 12–19–14, OTC (Ctrpty: Bank of America N.A.) (F)		1,378	$	1,372
S&P 500 Index:
Put $1,725.00, Expires 4–4–14		3,981		60
Put $1,825.00, Expires 4–4–14		3,981		667
Texas Instruments, Inc.,
Call $47.00, Expires 7–18–14, OTC (Ctrpty: Deutsche Bank AG)		8,276		1,564
Visa, Inc., Class A,
Call $220.00, Expires 5–16–14, OTC (Ctrpty: Barclays Bank plc)		3,982		1,881
Wells Fargo & Co.,
Call $50.00, Expires 6–20–14, OTC (Ctrpty: Morgan Stanley & Co., Inc.)		17,922		2,079
TOTAL PURCHASED OPTIONS – 0.2%			$	65,509
(Cost: $94,848)
CORPORATE DEBT SECURITIES	Principal
Automobile Manufacturers – 0.4%
Aston Martin Holdings Ltd.,
10.250%, 7–15–18 (G)(H)	$	130,284		135,486
Movies & Entertainment – 2.7%
Delta Topco Ltd.,
10.000%, 11–24–60 (E)(H)		602,589		602,589
Legendary Pictures Funding LLC and Legendary Finance, Inc.,
8.000%, 3–15–18 (D)		351,700		351,700
				954,289
TOTAL CORPORATE DEBT SECURITIES – 3.1%			$	1,089,775
(Cost: $1,090,781)

LOANS	Principal		Value
Movies & Entertainment – 0.5%
Circuit of the Americas LLC,
6.000%, 6–30–17 (I)	$	10,664	$	10,664
Formula One Holdings Ltd. and Alpha Topco Ltd.,
9.250%, 10–16–19 (I)		176,800		184,093
				194,757
TOTAL LOANS – 0.5%			$	194,757
(Cost: $185,271)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage–Backed Obligations – 0.0%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO:
5.500%, 9–15–17 (J)		180		4
5.000%, 5–15–18 (J)		529		41
5.000%, 4–15–19 (J)		1		—	*
5.500%, 3–15–23 (J)		407		43
5.500%, 10–15–25 (J)		745		111
5.500%, 1–15–33 (J)		333		54
5.500%, 5–15–33 (J)		599		110
6.000%, 11–15–35 (J)		604		113
Federal National Mortgage Association Agency REMIC/CMO:
5.500%, 6–25–23 (J)		595		86
5.000%, 11–25–23 (J)		10		—	*
5.500%, 8–25–33 (J)		1,136		185
5.500%, 12–25–33 (J)		667		48
5.500%, 4–25–34 (J)		1,206		203
5.500%, 8–25–35 (J)		1,248		216
5.500%, 11–25–36 (J)		2,192		376
Government National Mortgage Association Agency REMIC/CMO:
5.500%, 3–20–32 (J)		394		19
7.000%, 5–20–33 (J)		2,237		557
5.000%, 7–20–33 (J)		11		—	*
5.500%, 11–20–33 (J)		88		4
5.500%, 7–20–35 (J)		720		130
				2,300
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0%			$	2,300
(Cost: $7,237)
BULLION – 6.6%	Troy Ounces
Gold		1,827	$	2,345,035
(Cost: $2,392,298)

SHORT-TERM SECURITIES	Principal		Value
Certificate Of Deposit – 0.9%
Banco del Estado de Chile:
0.160%, 5–6–14	$	7,000	$	7,000
0.210%, 6–3–14		35,000		35,000
0.210%, 6–10–14		25,000		25,000
0.210%, 6–11–14		14,000		14,000
0.210%, 6–12–14		25,000		25,000
0.190%, 6–16–14		14,800		14,799
Bank of America N.A.:
0.190%, 4–21–14		25,000		25,000
0.190%, 5–22–14		2,000		2,000
0.210%, 7–15–14		19,000		18,999
Citibank N.A.:
0.160%, 5–14–14		25,000		25,002
0.160%, 6–3–14		75,000		75,003
0.160%, 6–17–14		9,000		9,001
				275,804
Commercial Paper – 9.7%
Air Products and Chemicals, Inc.:
0.100%, 4–3–14 (K)		15,000		15,000
0.090%, 4–11–14 (K)		24,000		23,999
0.100%, 4–17–14 (K)		12,750		12,749
0.100%, 4–24–14 (K)		15,000		14,999
American Honda Finance Corp. (GTD by Honda Motor Co.):
0.080%, 4–23–14 (K)		20,000		19,999
0.100%, 4–28–14 (K)		50,000		49,996
0.090%, 5–7–14 (K)		15,000		14,999
0.080%, 5–21–14 (K)		30,000		29,997
Anheuser–Busch InBev Worldwide, Inc. (GTD by AB INBEV/BBR/COB):
0.180%, 4–15–14 (K)		40,000		39,997
0.170%, 4–17–14 (K)		15,000		14,999
0.180%, 5–1–14 (K)		10,000		9,998
0.190%, 5–13–14 (K)		30,700		30,693
0.090%, 5–23–14 (K)		34,850		34,845
Army & Air Force Exchange Service:
0.070%, 4–1–14 (K)		11,566		11,566
0.070%, 4–7–14 (K)		10,000		10,000
0.070%, 4–9–14 (K)		13,500		13,500
Bank of Nova Scotia:
0.150%, 6–23–14 (K)		35,000		34,988
0.150%, 6–24–14 (K)		45,000		44,984
Becton Dickinson & Co.:
0.140%, 4–25–14 (K)		40,000		39,996
0.140%, 4–29–14 (K)		35,000		34,996
Bemis Company, Inc.:
0.230%, 4–1–14 (K)		14,000		14,000
0.230%, 4–10–14 (K)		6,250		6,250
0.240%, 4–16–14 (K)		13,325		13,324
0.230%, 4–23–14 (K)		17,750		17,747
BMW U.S. Capital LLC (GTD BMW AG):
0.090%, 4–10–14 (K)		3,235		3,235
0.090%, 4–14–14 (K)		25,000		24,999
0.100%, 5–16–14 (K)		8,750		8,749
0.110%, 5–22–14 (K)		27,000		26,996

14 ANNUAL REPORT 2014

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) MARCH 31, 2014

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Campbell Soup Co.:
0.090%, 4–10–14 (K)	$	2,730	$	2,730
0.150%, 5–6–14 (K)		15,000		14,998
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.),
0.110%, 6–5–14 (K)		40,000		39,992
Chevron Corp.,
0.140%, 4–28–14 (K)		15,000		14,998
Clorox Co. (The):
0.220%, 4–2–14 (K)		20,000		20,000
0.210%, 5–12–14 (K)		20,610		20,605
Coca–Cola Co. (The):
0.080%, 5–19–14 (K)		13,000		12,999
0.070%, 5–30–14 (K)		25,000		24,997
Corporacion Andina de Fomento:
0.140%, 4–2–14 (K)		75,000		74,998
0.100%, 4–21–14 (K)		40,000		39,998
0.140%, 4–28–14 (K)		15,000		14,998
Danaher Corp.:
0.100%, 4–9–14 (K)		8,500		8,500
0.090%, 4–10–14 (K)		32,900		32,899
0.090%, 4–11–14 (K)		7,000		7,000
Diageo Capital plc (GTD by Diageo plc):
0.180%, 4–1–14 (K)		34,000		34,000
0.250%, 5–15–14 (K)		35,000		34,989
0.270%, 5–28–14 (K)		2,615		2,614
DTE Energy Co. (GTD by Detroit Edison Co.):
0.250%, 4–10–14 (K)		19,000		18,999
0.270%, 4–28–14 (K)		25,000		24,995
Ecolab, Inc.:
0.210%, 4–7–14 (K)		1,593		1,593
0.190%, 4–16–14 (K)		15,000		14,999
0.220%, 5–5–14 (K)		8,000		7,998
0.280%, 5–8–14 (K)		17,000		16,995
0.210%, 5–12–14 (K)		14,000		13,997
Enbridge, Inc.:
0.270%, 4–14–14 (K)		10,000		9,999
0.270%, 4–16–14 (K)		27,000		26,997
Federal Home Loan Bank:
0.045%, 4–7–14 (K)		6,500		6,500
0.040%, 4–17–14 (K)		44,500		44,499
0.020%, 4–28–14 (K)		48,900		48,898
0.050%, 5–22–14 (K)		29,000		28,998
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), 0.080%, 4–30–14 (K)		37,000		36,998
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.):
0.210%, 4–3–14 (K)		10,000		10,000
0.210%, 4–7–14 (K)		30,000		29,999
0.170%, 4–8–14 (K)		3,000		3,000
0.170%, 4–14–14 (K)		20,000		19,998
0.270%, 4–16–14 (K)		14,500		14,498
0.200%, 4–21–14 (K)		15,000		14,998

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Honeywell International, Inc.,
0.090%, 4–9–14 (K)	$	25,000	$	24,999
ICICI Bank Ltd. (GTD by Wells Fargo Bank N.A.):
0.140%, 4–4–14 (K)		2,883		2,883
0.160%, 4–28–14 (K)		9,982		9,981
0.170%, 4–28–14 (K)		25,000		24,997
0.200%, 6–30–14 (K)		10,000		9,995
Illinois Tool Works, Inc.:
0.090%, 4–2–14 (K)		30,000		30,000
0.090%, 4–4–14 (K)		20,000		20,000
0.090%, 4–8–14 (K)		45,000		44,999
0.080%, 4–9–14 (K)		30,000		29,999
0.080%, 4–11–14 (K)		10,000		10,000
0.070%, 4–17–14 (K)		12,000		12,000
International Business Machines Corp.,
0.080%, 4–29–14 (K)		30,424		30,422
John Deere Canada ULC (GTD by Deere & Co.),
0.100%, 5–12–14 (K)		12,000		11,999
John Deere Capital Corp.,
0.090%, 4–23–14 (K)		30,000		29,998
John Deere Cash Management S.A. (GTD by Deere & Co.),
0.100%, 4–23–14 (K)		20,850		20,849
John Deere Financial Ltd. (GTD by John Deere Capital Corp.):
0.080%, 4–11–14 (K)		20,000		20,000
0.090%, 5–5–14 (K)		27,000		26,998
Kellogg Co.:
0.150%, 4–7–14 (K)		15,000		15,000
0.140%, 4–14–14 (K)		3,827		3,827
0.150%, 4–21–14 (K)		38,500		38,497
Kimberly-Clark Worldwide, Inc. (GTD by Kimberly-Clark Corp.),
0.070%, 4–28–14 (K)		57,700		57,696
Kroger Co. (The),
0.190%, 4–1–14 (K)		49,900		49,900
L Oreal USA, Inc.:
0.060%, 4–9–14 (K)		40,000		39,999
0.080%, 5–9–14 (K)		16,000		15,999
Merck & Co., Inc.:
0.060%, 4–25–14 (K)		65,000		64,996
0.080%, 5–23–14 (K)		28,000		27,997
0.040%, 5–28–14 (K)		46,000		45,997
Mondelez International, Inc.,
0.270%, 5–13–14 (K)		32,494		32,483
Nestle Finance International Ltd. (GTD by Nestle S.A.):
0.070%, 4–22–14 (K)		10,935		10,935
0.080%, 4–23–14 (K)		20,000		19,999
0.080%, 4–25–14 (K)		37,000		36,998
0.050%, 5–28–14 (K)		20,000		19,998

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
PACCAR Financial Corp. (GTD by PACCAR, Inc.):
0.090%, 4–17–14 (K)	$	12,000	$	11,999
0.080%, 4–29–14 (K)		12,000		11,999
0.090%, 5–2–14 (K)		36,600		36,597
0.080%, 5–6–14 (K)		15,000		14,999
PepsiCo, Inc.,
0.080%, 5–19–14 (K)		35,000		34,996
Procter & Gamble Co. (The):
0.050%, 5–13–14 (K)		40,000		39,998
0.040%, 5–29–14 (K)		10,000		9,999
River Fuel Co. #2, Inc. (GTD by Bank of Nova Scotia),
0.150%, 4–30–14 (K)		14,104		14,102
River Fuel Funding Co. #3, Inc. (GTD by Bank of Nova Scotia),
0.190%, 4–30–14 (K)		10,000		9,998
Roche Holdings, Inc.:
0.080%, 4–10–14 (K)		20,000		20,000
0.070%, 4–25–14 (K)		65,000		64,996
0.070%, 4–28–14 (K)		25,000		24,999
0.090%, 5–7–14 (K)		5,000		5,000
0.080%, 5–12–14 (K)		20,000		19,998
0.080%, 5–13–14 (K)		21,500		21,498
0.090%, 5–14–14 (K)		25,000		24,998
Shell International Finance B.V. and Royal Dutch Shell plc (GTD by Royal Dutch Shell plc),
0.050%, 4–2–14 (K)		25,000		25,000
Siemens Capital Co. LLC (GTD by Siemens AG),
0.100%, 5–23–14 (K)		50,000		49,993
St. Jude Medical, Inc.:
0.120%, 4–2–14 (K)		10,000		10,000
0.170%, 4–14–14 (K)		50,000		49,996
0.190%, 4–25–14 (K)		20,000		19,997
0.170%, 4–28–14 (K)		25,000		24,997
0.160%, 5–2–14 (K)		7,000		6,999
0.240%, 5–30–14 (K)		25,000		24,990
Toronto-Dominion Holdings USA, Inc. (GTD by Toronto Dominion Bank):
0.110%, 4–8–14 (K)		50,000		49,998
0.110%, 4–25–14 (K)		38,000		37,997
0.120%, 5–23–14 (K)		50,000		49,991
0.130%, 5–27–14 (K)		45,000		44,991
Total Capital Canada Ltd. (GTD by Total S.A.):
0.080%, 4–3–14 (K)		23,000		23,000
0.080%, 4–17–14 (K)		48,000		47,998
0.080%, 4–24–14 (K)		44,000		43,998
0.070%, 4–29–14 (K)		16,000		15,999
Total Capital S.A. (GTD by Total S.A.),
0.080%, 4–11–14 (K)		10,000		10,000
Unilever Capital Corp. (GTD by Unilever N.V.),
0.070%, 4–28–14 (K)		15,000		14,999

2014 ANNUAL REPORT 15

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) MARCH 31, 2014

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Virginia Electric and Power Co.: 0.200%, 4–3–14 (K)	$	15,000	$	15,000
0.210%, 4–23–14 (K)		20,000		19,997
0.210%, 5–1–14 (K)		30,000		29,995
W.W. Grainger, Inc., 0.070%, 4–1–14 (K)		15,000		15,000
Walt Disney Co. (The), 0.080%, 4–22–14 (K)		36,000		35,998
Wisconsin Electric Power Co., 0.100%, 4–3–14 (K)		20,000		20,000
Wisconsin Gas LLC: 0.080%, 4–2–14 (K)		51,000		50,999
0.070%, 4–3–14 (K)		27,000		27,000
0.100%, 4–9–14 (K)		50,000		49,998
0.100%, 4–11–14 (K)		45,000		44,999
				3,480,418
Master Note – 0.0%
Toyota Motor Credit Corp., 0.099%, 4–2–14 (L)		12,480		12,480
Municipal Obligations – Taxable – 1.4%
CA GO Notes, Ser B-6 (Taxable), (GTD by Bank of America N.A.), 0.140%, 5–1–14		4,000		4,000
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist Hlth Sys/West), Ser 1998B (GTD by Bank of America N.A.), 0.050%, 4–1–14 (L)		18,800		18,800
CA Muni Fin Auth, Recovery Zone Fac Bonds (Chevron USA, Inc. Proj), Ser 2010C (GTD by Chevron Corp.), 0.060%, 4–1–14 (L)		12,386		12,386
CA Pollutn Ctl Fin Auth, Pollutn Ctl Rfdg Rev Bonds (Pacific Gas and Elec Co.), Ser C (GTD by JPMorgan Chase Bank N.A.), 0.060%, 4–1–14 (L)		24,701		24,701
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by U.S. Government), 0.070%, 4–7–14 (L)		1,443		1,443
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank N.A.), 0.040%, 4–7–14 (L)		26,375		26,375

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – Taxable (Continued)
Columbus Rgnl Arpt Auth, Cap Fund Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2005 (GTD by U.S. Bank N.A.), 0.060%, 4–7–14 (L)	$	8,000	$	8,000
Dev Auth of Gwinnet Cnty, Rec Zone Fac Bonds (Nilhan Hosp, LLC Proj), Ser 2010 (GTD by U.S. Bank N.A.), 0.060%, 4–7–14 (L)		6,000		6,000
Dev Auth of Monroe Cty, Pollutn Ctl Rev Bonds (GA Power Co. Plant Scherer Proj), First Ser 2008 (GTD by Georgia Power Co.), 0.080%, 4–1–14 (L)		1,465		1,465
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank N.A.), 0.050%, 4–7–14 (L)		9,300		9,300
Greenville Hosp Sys Board of Trustees, Hosp Rfdg Rev Bonds, Ser 2008B (GTD by U.S. Bank N.A.), 0.050%, 4–7–14 (L)		6,000		6,000
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.), 0.060%, 4–7–14 (L)		28,300		28,300
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2008B (GTD by U.S. Bank N.A.), 0.060%, 4–7–14 (L)		1,905		1,905
IL Fin Auth, Var Rate Demand Rev Bonds (The Carle Fndtn), Ser 2009 (GTD by JPMorgan Chase Bank N.A.), 0.070%, 4–7–14 (L)		855		855
IL Fin Auth, Var Rate Demand Rev Bonds (The Univ of Chicago Med Ctr), Ser D (GTD by JPMorgan Chase & Co.), 0.070%, 4–1–14 (L)		9,000		9,000
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2012A (GTD by U.S. Bank N.A.), 0.050%, 4–1–14 (L)		28,600		28,600
LA Pub Fac Auth, Var Rate Rev Rfdg Bonds (CHRISTUS Hlth), Ser 2009B-1 (GTD by Bank of New York (The)), 0.060%, 4–7–14 (L)		6,750		6,750

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – Taxable (Continued)
MA Hlth and Edu Fac Auth, Var Rate Rev Bonds, Dana-Farber Cancer Institute Issue, Ser 2008L-1 (GTD by JPMorgan Chase Bank N.A.), 0.050%, 4–7–14 (L)	$	14,600	$	14,600
MI Strategic Fund, Var Rate Demand Ltd. Oblig Rev Bonds (Air Products and Chemicals, Inc. Proj), Ser 2007 (GTD by Bank of New York (The)), 0.080%, 4–1–14 (L)		23,877		23,877
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2007B (GTD by Chevron Corp.), 0.070%, 4–1–14 (L)		33,423		33,423
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2007D (GTD by Chevron Corp.), 0.070%, 4–1–14 (L)		29,175		29,175
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2010J (GTD by Chevron Corp.), 0.070%, 4–1–14 (L)		26,838		26,838
MS Business Fin Corp., Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron USA, Inc. Proj), Ser E (GTD by Chevron Corp.), 0.070%, 4–1–14 (L)		38,894		38,894
Muni Elec Auth GA, Proj One Bond Anticipation Notes, Ser B (Tax-Exempt), (GTD by TD Bank), 0.050%, 4–1–14		14,922		14,922
Muni Impvt Corp. of Los Angeles, Lease Rev, Ser B-1 (Taxable), (GTD by Wells Fargo Bank N.A.), 0.120%, 5–1–14		7,000		7,000
NY Hsng Fin Agy, Clinton Park Phase II Hsng Rev Bonds, Ser 2011 A-1 (GTD by Wells Fargo Bank N.A.), 0.060%, 4–7–14 (L)		19,084		19,084
NY Hsng Fin Agy, Related West 30th Street Hsng Rev Bonds, Ser 2012 A-1 (GTD by Wells Fargo Bank N.A.), 0.060%, 4–7–14 (L)		12,200		12,200
NY Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2012 A, 0.070%, 4–7–14 (L)		7,000		7,000

16 ANNUAL REPORT 2014

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) MARCH 31, 2014

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – Taxable (Continued)
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2013A,
0.060%, 4–7–14 (L)	$	10,000	$	10,000
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013A-2 (GTD by Bank of America N.A.),
0.070%, 4–7–14 (L)		14,000		14,000
NYC GO Bonds, Fiscal 2008 Series L-4,
0.060%, 4–1–14 (L)		13,000		13,000
Peninsula Ports Auth of VA, Coal Terminal Rev Rfdg Bonds (Dominion Terminal Assoc Proj), Ser 1987-A (GTD by U.S. Bank N.A.),
0.060%, 4–1–14		10,000		10,000
Santa Clara Cnty Fin Auth, Var Rate Rev Bonds, El Camino Hosp, Ser 2009A (GTD by Wells Fargo Bank N.A.),
0.060%, 4–7–14 (L)		14,751		14,751
Sheridan Redev Agy CO Tax, Var Rfdg S Santa Fe Dr Corridor Redev PJ-Ser A-1 (GTD by JPMorgan Chase & Co.),
0.090%, 4–7–14 (L)		1,905		1,905
Uinta Cnty, WY, Pollutn Ctl Rfdg Rev Bonds (Chevron USA, Inc. Proj), Ser 1992 (GTD by Chevron Corp.),
0.070%, 4–1–14 (L)		8,767		8,767
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004, 0.080%, 4–1–14 (L)		3,940		3,940

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – Taxable (Continued)
WI Hlth and Edu Fac Auth, Wheaton Franciscan Svc, Inc., Sys Var Rate Rev Bonds, Ser 2003B (GTD by U.S. Bank N.A.), 0.060%, 4–7–14 (L)	$	4,500	$	4,500
				501,756
Notes – 0.2%
BHP Billiton Finance (USA) Ltd. (GTD by BHP Billiton Ltd.), 5.500%, 4–1–14		8,000		8,001
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.), 0.040%, 4–7–14 (L)		30,000		30,000
CA GO Bonds, Ser 2005A3 (GTD by Bank of America N.A.), 0.060%, 4–7–14 (L)		5,000		5,000
JPMorgan Chase & Co., 4.650%, 6–1–14		300		302
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013A-1 (GTD by Bank of America N.A.), 0.070%, 4–7–14 (L)		16,500		16,500
OR Hsng and Cmnty Svc Dept, Hsng Dev Rev Bonds (Pearl Fam Hsng Proj), Ser 2009B-1 (GTD by U.S. Bank N.A.), 0.060%, 4–7–14 (L)		10,925		10,925
				70,728
Treasury Bills – 0.0%
U.S. Treasury Bills, 0.040%, 4–24–14		13,883		13,883

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations – 0.4%
Overseas Private Investment Corp. (GTD by U.S. Government):
0.120%, 4–2–14 (L)	$	11,055	$	11,055
0.120%, 4–2–14 (L)		7,500		7,500
0.120%, 4–2–14 (L)		4,200		4,200
0.120%, 4–2–14 (L)		3,000		3,000
0.120%, 4–4–14 (L)		5,000		5,000
0.120%, 4–7–14 (L)		35,000		35,000
0.120%, 4–7–14 (L)		18,500		18,500
0.120%, 4–7–14 (L)		17,953		17,953
0.120%, 4–7–14 (L)		12,541		12,654
0.120%, 4–7–14 (L)		10,062		10,062
0.120%, 4–7–14 (L)		4,000		4,000
				128,924
TOTAL SHORT-TERM SECURITIES – 12.6%			$	4,483,993
(Cost: $4,483,851)
TOTAL INVESTMENT SECURITIES – 99.7%			$	35,504,909
(Cost: $27,593,378)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3%				90,903
NET ASSETS – 100.0%			$	35,595,812

Notes to Consolidated Schedule of Investments

* Not shown due to rounding.

(A) No dividends were paid during the preceding 12 months.

(B) All or a portion of the security position is held in collateralized accounts for OTC derivatives collateral as governed by International Swaps and Derivatives Association, Inc. Master Agreements.

(C) Listed on an exchange outside the United States.

(D) Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities.

(E) Restricted securities. At March 31, 2014, the Fund owned the following restricted securities:

Security	Acquisition Date(s)	Shares		Cost		Market Value
Delta Topco Ltd.	1–23–12 to 5–1–12		718,555	$	486,355	$	833,351
Legend Pictures LLC	12–18–12		190		352,761		373,844
Media Group Holdings LLC	4–23–13		381		818,617		818,617
		Principal
Delta Topco Ltd., 10.000%, 11–24–60	1–23–12 to 6–18–12		$602,589		608,797		602,589
				$	2,266,530	$	2,628,401

The total value of these securities represented 7.4% of net assets at March 31, 2014.

2014 ANNUAL REPORT 17

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) MARCH 31, 2014

(F) Principal amount and exercise prices are denominated in the indicated foreign currency, where applicable (CHF - Swiss Franc, EUR - Euro, GBP - British Pound and JPY - Japanese Yen).

(G) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2014, the total value of these securities amounted to $135,486 or 0.4% of net assets.

(H) Payment-in-kind bonds.

(I) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2014.

(J) Interest-only security. Amount shown as principal represents notional amount for computation of interest.

(K) Rate shown is the yield to maturity at March 31, 2014.

(L) Variable rate security. Interest rate disclosed is that which is in effect at March 31, 2014. Date shown represents the date that the variable rate resets.

(M) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund.

The following forward foreign currency contracts were outstanding at March 31, 2014:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	Japanese Yen	State Street Global Markets		2,714,584		4-28-14	$	270	$	—
Sell	Japanese Yen	Goldman Sachs International		26,935,967		4-28-14		1,809		—
Sell	Japanese Yen	UBS AG		25,648,121		4-28-14		2,473		—
Sell	Japanese Yen	Citibank N.A.		41,204,494		4-28-14		4,342		—
Sell	Japanese Yen	Morgan Stanley International		73,426,234		4-28-14		5,113		—
Sell	Japanese Yen	Barclays Capital, Inc.		118,805,123		4-28-14		10,762		—
Sell	Japanese Yen	Deutsche Bank AG		161,536,861		4-28-14		11,463		—
							$	36,232	$	—

The following written options were outstanding at March 31, 2014 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Expiration Month		Exercise Price		Premium Received		Value
Adobe Systems, Inc.	Citibank N.A.	Put		5,412		July 2014	$	60.00	$	809	$	(850	)
	Citibank N.A.	Call		5,412		July 2014		80.00		622		(198	)
Alliance Data Systems Corp.	Societe Generale Bank	Put		1,275		June 2014		240.00		504		(580	)
	Societe Generale Bank	Call		1,275		June 2014		330.00		128		(163	)
Amazon.com, Inc.	Bank of America N.A.	Put		2,467		May 2014		330.00		2,344		(3,441	)
	Bank of America N.A.	Call		2,467		May 2014		420.00		950		(231	)
Apple, Inc.	UBS AG	Call		1,358		April 2014		570.00		499		(77	)
	Goldman Sachs International	Call		240		April 2014		605.00		74		(3	)
Bayerische Motoren Werke AG	Bank of America N.A.	Call		5,970		June 2014	EUR	96.00		891		(1,283	)
BNP Paribas	Bank of America N.A.	Put		11,148		December 2014		48.00		3,339		(3,118	)
	Bank of America N.A.	Call		11,148		December 2014		72.00		1,483		(753	)
Boeing Co. (The)	Morgan Stanley & Co., Inc.	Put		2,784		May 2014	$	115.00		467		(312	)
	Morgan Stanley & Co., Inc.	Put		2,784		May 2014		120.00		763		(596	)
	Morgan Stanley & Co., Inc.	Call		5,568		May 2014		140.00		612		(156	)
ConocoPhillips	JPMorgan Chase Bank N.A.	Put		6,762		May 2014		62.50		622		(101	)
DIRECTV	Societe Generale Bank	Put		3,325		June 2014		67.50		515		(382	)
	Societe Generale Bank	Call		3,325		June 2014		90.00		323		(306	)
Dow Chemical Co. (The)	Citibank N.A.	Put		11,934		June 2014		44.00		1,214		(794	)
	Citibank N.A.	Call		11,934		June 2014		55.00		521		(328	)
FTSE 100 Index	Barclays Bank plc	Put		4,767		June 2014	GBP	5,900.00		8,356		(2,050	)
Gilead Sciences, Inc.	Barclays Bank plc	Put		10,740		May 2014	$	75.00		2,233		(6,578	)
	Barclays Bank plc	Call		10,740		May 2014		100.00		839		(32	)
Google, Inc., Class A	UBS AG	Put		796		June 2014		1,000.00		1,193		(1,182	)
	UBS AG	Call		796		June 2014		1,300.00		777		(617	)
Hewlett-Packard Co.	JPMorgan Chase Bank N.A.	Put		19,914		June 2014		28.00		916		(946	)
	JPMorgan Chase Bank N.A.	Call		19,914		June 2014		38.00		578		(528	)
Nikkei 225 Index	UBS AG	Put		795		April 2014	JPY	14,000.00		2,196		(308	)
	UBS AG	Put		398		April 2014		14,500.00		1,811		(521	)
	UBS AG	Call		795		April 2014		16,250.00		1,465		(31	)
	UBS AG	Call		2,384		April 2014		16,500.00		1,376		(69	)
	Bank of America N.A.	Call		2,389		April 2014		16,500.00		1,642		(69	)
	UBS AG	Put		4,768		June 2014		13,500.00		13,170		(8,315	)

18 ANNUAL REPORT 2014

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) MARCH 31, 2014

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Expiration Month		Exercise Price		Premium Received		Value
Oracle Corp.	Bank of America N.A.	Call		23,874		May 2014	$	44.00	$	286	$	(477	)
QUALCOMM, Inc.	Citibank N.A.	Put		11,152		June 2014		75.00		1,523		(1,539	)
Roche Holdings AG, Genusscheine	Bank of America N.A.	Put		1,378		December 2014	CHF	230.00		845		(671	)
S&P 500 Index	N/A	Put		7,962		April 2014	$	1,775.00		2,452		(279	)
Texas Instruments, Inc.	Deutsche Bank AG	Put		8,276		July 2014		38.00		248		(157	)
Visa, Inc., Class A	Barclays Bank plc	Put		3,982		May 2014		200.00		796		(771	)
	Barclays Bank plc	Call		3,982		May 2014		235.00		398		(422	)
Wells Fargo & Co.	Morgan Stanley & Co., Inc.	Put		17,922		June 2014		44.00		466		(403	)
									$	60,246	$	(39,637	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of March 31, 2014. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	9,615,612	$	—	$	2,025,812
Consumer Staples		476,893		—		—
Energy		1,414,907		—		—
Financials		7,003,296		—		—
Health Care		1,448,300		—		—
Industrials		1,343,812		—		—
Information Technology		3,227,767		—		—
Materials		447,460		—		—
Telecommunication Services		319,681		—		—
Total Common Stocks	$	25,297,728	$	—	$	2,025,812
Purchased Options		727		64,782		—
Corporate Debt Securities		—		135,486		954,289
Loans		—		—		194,757
United States Government Agency Obligations		—		2,300		—
Bullion		2,345,035		—		—
Short-Term Securities		—		4,483,993		—
Total	$	27,643,490	$	4,686,561	$	3,174,858
Forward Foreign Currency Contracts	$	—	$	36,232	$	—
Liabilities
Written Options	$	279	$	39,358	$	—

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Common Stocks		Corporate Debt Securities			Loans			Short-Term Securities
Beginning Balance 4-1-13	$	958,998	$	945,808		$	199,929		$	5,846
Net realized gain (loss)		—		—			—			—
Net change in unrealized appreciation (depreciation)		247,672		—	*		(3,374	)		—
Purchases		819,142		59,410			—			—
Sales		—		(50,929	)		(2,086	)		—
Amortization/Accretion of premium/discount		—		—			288			—
Transfers into Level 3 during the period		—		—			—			—
Transfers out of Level 3 during the period		—		—			—			(5,846	)
Ending Balance 3-31-14	$	2,025,812	$	954,289		$	194,757		$	—
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 3-31-14	$	247,672	$	—	*	$	(3,374	)	$	—

Transfers from Level 2 to Level 3 occurred primarily due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred primarily due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Levels 1 and 2 during the period ended March 31, 2014.

2014 ANNUAL REPORT 19

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) MARCH 31, 2014

Information about Level 3 fair value measurements:

	Fair Value at 3-31-14		Valuation Technique(s)		Unobservable Input(s)		Input Value(s)
Assets
Common Stocks	$	1,207,195		Discounted cash flows model		Long-term growth rate		2.5%
						Weighted average cost of capital		8.5 to 9.5%
						Illiquidity discount		7.5 to 10%
		818,617		Purchase price		Purchase price	$	2,147.47
Corporate Debt Securities		351,700		Purchase price		Purchase price		100
		602,589		Discounted cash flows model		Long-term growth rate		2.5%
						Weighted average cost of capital		8.5%
						Illiquidity discount		7.5%
Loans		194,757		Third-party valuation service		Broker quotes		100 to 104.125

Significant increase in price-earnings ratio or long-term growth rate inputs could result in a higher fair value measurement. However, significant increase in weighted average cost of capital of illiquidity discount inputs could result in a lower fair value measurement.

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

OTC = Over the Counter

REMIC = Real Estate Mortgage Investment Conduit

Country Diversification
(as a % of net assets)
United States	40.6%
Japan	12.3%
Hong Kong	8.8%
United Kingdom	5.3%

China	5.2%
Germany	4.0%
France	2.0%
Switzerland	1.5%
Other Countries	0.6%
Other+	19.7%

+ Includes gold bullion, options, cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

20 ANNUAL REPORT 2014

MANAGEMENT DISCUSSION

Ivy Balanced Fund (UNAUDITED)

Cynthia P. Prince-Fox

Below, Cynthia P. Prince-Fox, portfolio manager of Ivy Balanced Fund, discusses positioning, performance and results for the fiscal year ended March 31, 2014. She has managed the Fund since 2003 and has 31 years of industry experience.

Fiscal Year Performance

For the 12 Months Ended March 31, 2014
Ivy Balanced Fund (Class A shares at net asset value)	15.90%
Ivy Balanced Fund (Class A shares including sales charges)	9.22%
Benchmark(s) and/or Lipper Category
S&P 500 Index	21.86%
(generally reflects the performance of large- and medium-sized U.S. stocks)
Lipper Mixed-Asset Target Allocation Growth Funds Universe Average	13.76%
(generally reflects the performance of the universe of funds with similar investment objectives)
Barclays U.S. Government/Credit Index	–0.26%
(generally reflects the performance of securities in the bond market)

Please note that Fund returns include applicable fees and expenses, whereas the index returns do not include any such fees. Multiple indexes are presented because the Fund invests in multiple assets classes. The performance discussion below is at net asset value.

Key drivers

Underperformance of the Fund was due to the Fund’s fixed-income allocation. The Fund ordinarily invests at least 25% of its assets in fixed-income securities. During the period, equities generally outperformed fixed-income securities and, as a result, the bond portfolio acted as a drag on the performance relative to the all-equities benchmark. The Fund’s equities portion of the portfolio performed better than the S&P 500 benchmark during the fiscal year.

The Fund’s relative outperformance to the Lipper Mixed-Asset Target Allocation Growth Funds Universe Average was influenced by a number of factors. First, asset allocation played a key role in overall performance. Our decision to overweight equities for the year drove strong relative performance as equities significantly outperformed bonds for the year. This decision to target the Fund’s maximum allocation in equities was based primarily on the absolute low level of interest rates, where, in our opinion, equities offered a more compelling long-term return potential than bonds.

Other key drivers of outperformance compared to the Lipper average were the Fund’s security selection and sector emphasis within the equities portion of the portfolio. The main drivers in sector emphasis came from our decision to overweight industrials and consumer discretionary. While every industry sector posted positive returns for the year, industrials and consumer discretionary represented two of the top three categories. Utilities and telecommunications were the two laggards for the period, where the Fund had no exposure for the majority of the year. From a stock selection standpoint, the Fund had strong security selection within its consumer discretionary and industrials holdings. The majority of adverse stock selection came from our health care and technology selections. While the health care holdings posted positive returns, they significantly lagged a very strong move in major pharmaceuticals, where we had limited exposure. In addition to strong relative equity performance, the Fund’s fixed-income returns were slightly positive, better than the negative return by the Barclays U.S. Government/Credit Index benchmark.

From a macro perspective, we witnessed a wide range of events that drove volatility throughout the year. While the first quarter S&P 500 return was impressive, consumer staples and utilities were the sectors that posted strongest performance. While these areas are generally considered to be defensive in nature, we saw this move as a symptom of a broader trend in investors’ quest for yield outside of what was generally available in the credit markets. This quest drove more companies to return excess capital in the form of dividends and buybacks, highlighted by a surge in dividend increases for the year.

The fixed-income portion of the Fund generated a positive return for the year in an environment where most high quality fixed-income benchmarks including the Barclays U.S. Government/Credit Index experienced negative returns. The fixed-income portfolio has long been short duration to its benchmark given the absolute low level of interest rates. It has also developed a substantial overweight in credit given the relatively good health of corporate balance sheets and abundant liquidity available within the financial system. Both the short duration and overweight in credit were strong drivers of outperformance. Credit outperformance also benefited from a significant position in financials, mainly banks and a heavier weighting to the BBB credit rating bucket. Given the uncertainty surrounding the pace of the Federal Reserve’s exit program and its effects on longer-term interest rates, we prefer not to make substantial bets on the future levels of interest rates. Instead we are pursuing strategies that focus on generating outperformance from the steepness exhibited in the intermediate part of the yield curve and credit markets.

Contributors and detractors

Top contributors to overall performance were names that fell into either consumer discretionary or industrials. Within consumer discretionary, mass media company CBS Corporation demonstrated strong performance for the year. While the Fund has held this stock for a number of years, the secular trend for retransmission revenues continued to be a key metric for stock performance. The thesis is that broadcast networks have a roughly 40% share of spend on programming and viewership, but only receive 4% of the consumer bill or 10% of the total spend by MVPDs (multichannel video programming distributors), such as cable TV systems and direct-broadcast satellite providers. It is estimated that retransmission payments to

2014 ANNUAL REPORT 21

MANAGEMENT DISCUSSION

Ivy Balanced Fund (UNAUDITED)

CBS will go from $300 million to $1 billion by 2016, with potential to go higher over the next five years. In addition, it is our view that the company has done a spectacular job managing its balance sheet and assets, returning more than $2 billion through dividends and share repurchase.

The top absolute performer for the year was Dow Chemical Company (The). The Fund’s acquisition of the stock was based on analysis that Dow was not being adequately valued due to its higher quality mix of assets since its Rohm & Haas acquisition and the competitive position of its commodity assets based on lower feed stock costs of U.S. natural gas. Looking ahead, the company has stated its commitment to continue its progression toward a more fully integrated value-added business, further supporting the case for a higher valuation.

Detractors from performance were found in technology and health care. A notable underperformer was the drug manufacturer, Allergan, Inc. On July 21, 2013, the U.S. Food and Drug Administration issued surprising draft guidance regarding the generic path for Restasis (dry eye drug), a key Allergan compound. In our opinion, that news combined with multiple pipeline delays on new compounds, marked a notable change in the risk profile for Allergan. We exited the position during the year.

Outlook

As we look forward, we believe profit growth will ultimately be the driver of market performance. Stock prices have been remarkably resilient in the face of innumerable macro events since 2009, primarily as a result of a more than doubling in corporate profits. This outstanding profits recovery has occurred in a modest growth environment as corporations have become lean and mean. A return of confidence will be needed for housing to sustain its recovery and capital expenditures to resume. Otherwise, stock performance may have borrowed from the future as we move through 2014. In addition, there was much discussion about this year’s never-ending winter and how markets will interpret weakness in the headline numbers. While it is difficult to predict, we expect a bounce back in the second quarter, with a lot of noise in the numbers. While there is never any shortage of things for investors to worry about these days — and the latest quarter was no exception — we will continue to focus on the long-term potential of investments we make in the Fund’s portfolio.

Performance shown at NAV does not include the effects of sales charges. If reflected, the performance shown would have been lower. Performance including sales charges reflects the maximum applicable front-end sales load.

Past performance is not a guarantee of future results. As with any mutual fund, the value of the Fund’s shares will change, and you could lose money on your investment.

Fixed-income securities are subject to interest rate risk and, as such, the Fund’s net asset value may fall as interest rates rise. These and other risks are more fully described in the Fund’s prospectus.

The opinions expressed in this report are those of the portfolio manager and are current only through the end of the period of the report as stated on the cover. The manager’s views are subject to change at any time based on market and other conditions, and no forecasts can be guaranteed.

The indexes noted are unmanaged, include reinvested dividends and do not include fees. One cannot invest directly in an index, nor is an index representative of the Ivy Balanced Fund’s performance.

22 ANNUAL REPORT 2014

PORTFOLIO HIGHLIGHTS

Ivy Balanced Fund ALL DATA IS AS OF MARCH 31, 2014 (UNAUDITED)

Asset Allocation

Stocks	70.5%
Consumer Discretionary	13.3%
Industrials	12.5%
Financials	10.2%
Energy	9.4%
Consumer Staples	8.3%
Information Technology	8.1%
Health Care	4.9%
Materials	3.8%
Bonds	24.7%
Corporate Debt Securities	22.1%
United States Government and Government Agency Obligations	2.5%
Other Government Securities	0.1%
Cash and Cash Equivalents	4.8%

Lipper Rankings

Category: Lipper Mixed-Asset Target Allocation Growth Funds	Rank	Percentile
1 Year	119/581	21
3 Year	83/523	16
5 Year	279/487	58
10 Year	17/305	6

Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
PNC Financial Services Group, Inc. (The)	Financials
JPMorgan Chase & Co.	Financials
Limited Brands, Inc.	Consumer Discretionary
Brown-Forman Corp., Class B	Consumer Staples
Applied Materials, Inc.	Information Technology
Anheuser-Busch InBev S.A. ADR	Consumer Staples
Cognizant Technology Solutions Corp., Class A	Information Technology
Estee Lauder Co., Inc. (The), Class A	Consumer Staples
PPG Industries, Inc.	Materials
American Express Co.	Financials

See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.

2014 ANNUAL REPORT 23

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT

Ivy Balanced Fund (UNAUDITED)

Please note that the performance of the Fund’s other share classes will be greater or less than the performance shown above for Class A based on the differences in loads and fees paid by shareholders investing in the different classes.

(1) The value of the investment in the Fund is impacted by the sales load at the time of the investment and by the ongoing expenses of the Fund and assumes reinvestment of dividends and distributions.

Average Annual Total Return(2)	Class A		Class B(3)		Class C		Class E(4)		Class I		Class R		Class Y
1-year period ended 3-31-14		9.22%		11.01%		15.11%		9.43%		16.21%		15.51%		15.91%
5-year period ended 3-31-14		13.87%		14.20%		14.48%		14.18%		15.60%		—		15.28%
10-year period ended 3-31-14		7.30%		7.00%		7.16%		—		—		—		8.05%
Since inception of Class through 3-31-14(5)		—		—		—		7.38%		8.37%		18.09%		—

(2) Data quoted is past performance and is based on deduction of the maximum applicable sales load for each of the periods. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Please visit www.ivyfunds.com for the Fund’s most recent month-end performance. Class A and Class E shares carry a maximum front-end sales load of 5.75%. Class B and Class C shares carry a maximum contingent deferred sales charge (CDSC) of 5% and 1%, respectively (the Class C shares reflect no CDSC since it only applies to Class C shares redeemed within twelve months after purchase). Class I, Class R and Class Y shares are not subject to sales charges.

(3) Class B shares are not currently available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund.

(4) Class E shares are not currently available for investment.

(5) 4-2-07 for Class E and Class I shares and 12-19-12 for Class R shares (the date on which shares were first acquired by shareholders).

Past performance is not necessarily indicative of future performance. Indexes are unmanaged. The performance graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Performance results may 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 Advantus Spectrum Fund merged into the Ivy Balanced Fund on December 8, 2003. The performance shown for periods prior to this date is that of the Advantus Spectrum Fund Class A shares, restated to reflect current sales charges applicable to Ivy Balanced Fund Class A shares. Performance has not been restated to reflect the fees and expenses applicable to the Ivy Balanced Fund. If these expenses were reflected, performance shown would differ.

24 ANNUAL REPORT 2014

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands)

MARCH 31, 2014

COMMON STOCKS	Shares		Value
Aerospace & Defense – 4.0%
Boeing Co. (The)		196	$	24,645
Honeywell International, Inc.		263		24,424
Precision Castparts Corp.		95		24,063
				73,132
Apparel Retail – 1.7%
Limited Brands, Inc.		534		30,332
Apparel, Accessories & Luxury Goods – 0.8%
lululemon athletica, Inc. (A)		263		13,810
Application Software – 1.3%
Intuit, Inc.		295		22,907
Asset Management & Custody Banks – 1.5%
Northern Trust Corp.		412		26,978
Brewers – 1.6%
Anheuser-Busch InBev S.A. ADR		279		29,337
Broadcasting – 1.4%
CBS Corp., Class B		401		24,788
Cable & Satellite – 2.4%
Comcast Corp., Class A		486		24,311
Time Warner Cable, Inc.		151		20,700
				45,011
Computer Hardware – 1.3%
Apple, Inc.		44		23,778
Construction & Farm Machinery & Heavy Trucks – 1.4%
Cummins, Inc.		174		25,850
Consumer Finance – 1.5%
American Express Co.		304		27,360
Data Processing & Outsourced Services – 1.2%
Alliance Data Systems Corp. (A)		80		21,850
Distillers & Vintners – 2.8%
Brown-Forman Corp., Class B		337		30,263
Constellation Brands, Inc. (A)		256		21,744
				52,007
Diversified Chemicals – 3.0%
Dow Chemical Co. (The)		559		27,172
PPG Industries, Inc.		143		27,606
				54,778
Electrical Components & Equipment – 1.4%
Rockwell Automation, Inc.		202		25,172
Health Care Equipment – 1.2%
Covidien plc		304		22,378

COMMON STOCKS (Continued)	Shares		Value
Home Improvement Retail – 1.3%
Home Depot, Inc. (The)		306	$	24,190
Hotels, Resorts & Cruise Lines – 0.7%
Hyatt Hotels Corp., Class A (A)		243		13,081
Household Products – 1.3%
Colgate-Palmolive Co.		361		23,405
Industrial Conglomerates – 1.2%
3M Co.		162		21,936
Industrial Gases – 0.8%
Praxair, Inc.		112		14,708
Industrial Machinery – 2.4%
Pall Corp.		218		19,540
Pentair, Inc.		305		24,175
				43,715
Integrated Oil & Gas – 1.2%
Exxon Mobil Corp.		226		22,027
Internet Retail – 1.3%
Amazon.com, Inc. (A)		71		23,725
IT Consulting & Other Services – 1.5%
Cognizant Technology Solutions Corp., Class A (A)		563		28,483
Managed Health Care – 1.1%
UnitedHealth Group, Inc.		237		19,448
Motorcycle Manufacturers – 1.4%
Harley-Davidson, Inc.		380		25,338
Movies & Entertainment – 1.4%
Twenty-First Century Fox, Inc.		805		25,036
Multi-Line Insurance – 1.3%
American International Group, Inc.		479		23,940
Oil & Gas Equipment & Services – 2.5%
National Oilwell Varco, Inc.		295		22,980
Schlumberger Ltd.		233		22,688
				45,668
Oil & Gas Exploration & Production – 2.6%
ConocoPhillips		341		23,989
Noble Energy, Inc.		340		24,118
				48,107
Oil & Gas Refining & Marketing – 1.5%
Phillips 66		351		27,060

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Storage & Transportation – 1.6%
Plains GP Holdings L.P., Class A		487	$	13,621
Regency Energy Partners L.P.		558		15,191
				28,812
Other Diversified Financial Services – 3.2%
Citigroup, Inc.		562		26,737
JPMorgan Chase & Co.		507		30,786
				57,523
Packaged Foods & Meats – 1.1%
Mead Johnson Nutrition Co.		231		19,180
Personal Products – 1.5%
Estee Lauder Co., Inc. (The), Class A		417		27,916
Pharmaceuticals – 2.6%
GlaxoSmithKline plc ADR		415		22,195
Johnson & Johnson		266		26,090
				48,285
Property & Casualty Insurance – 0.9%
Travelers Co., Inc. (The)		188		15,982
Railroads – 1.5%
Union Pacific Corp.		144		27,004
Regional Banks – 1.8%
PNC Financial Services Group, Inc. (The)		384		33,399
Research & Consulting Services – 0.6%
Verisk Analytics, Inc., Class A (A)		186		11,177
Restaurants – 0.9%
Panera Bread Co., Class A (A)		89		15,688
Semiconductor Equipment – 1.6%
Applied Materials, Inc.		1,476		30,140
Semiconductors – 1.2%
Microchip Technology, Inc.		442		21,110
TOTAL COMMON STOCKS – 70.5%			$	1,285,551
(Cost: $1,016,918)

2014 ANNUAL REPORT 25

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands)

MARCH 31, 2014

CORPORATE DEBT SECURITIES	Principal		Value
Aerospace & Defense – 0.2%
General Dynamics Corp., 1.000%, 11–15–17	$	1,500	$	1,472
Northrop Grumman Corp., 1.750%, 6–1–18		2,060		2,027
				3,499
Apparel Retail – 0.2%
Limited Brands, Inc.:
6.900%, 7–15–17		750		858
6.625%, 4–1–21		2,915		3,276
				4,134
Apparel, Accessories & Luxury Goods – 0.1%
LVMH Moet Hennessy– Louis Vuitton, 1.625%, 6–29–17 (B)		2,000		2,015
Asset Management & Custody Banks – 0.4%
Ares Capital Corp., 4.875%, 11–30–18		6,500		6,715
Auto Parts & Equipment – 0.0%
Delphi Corp., 5.000%, 2–15–23		849		900
Automobile Manufacturers – 0.7%
Ford Motor Co., Convertible, 4.250%, 11–15–16		1,000		1,811
Hyundai Capital America, 2.875%, 8–9–18 (B)		1,550		1,580
Toyota Motor Credit Corp.: 0.526%, 5–17–16 (C)		1,500		1,506
2.050%, 1–12–17		2,000		2,053
2.000%, 10–24–18		3,225		3,220
				10,170
Biotechnology – 0.1%
Amgen, Inc., 2.125%, 5–15–17		2,000		2,040
Brewers – 0.3%
Anheuser-Busch InBev Worldwide, Inc., 1.375%, 7–15–17		1,000		1,002
Heineken N.V., 1.400%, 10–1–17 (B)		2,000		1,992
SABMiller Holdings, Inc., 2.200%, 8–1–18 (B)		2,700		2,696
				5,690
Broadcasting – 0.0%
Discovery Communications LLC, 3.300%, 5–15–22		900		878
Cable & Satellite – 0.1%
DIRECTV Holdings LLC, 2.400%, 3–15–17		500		511

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Cable & Satellite (Continued)
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc., 3.500%, 3–1–16	$	1,000	$	1,045
Pearson Funding Five plc,
3.250%, 5–8–23 (B)		900		834
				2,390
Consumer Finance – 1.5%
American Express Credit Corp.,
2.125%, 7–27–18		1,750		1,759
American Honda Finance Corp.:
0.609%, 5–26–16 (B)(C)		1,500		1,507
2.125%, 10–10–18		1,650		1,657
Capital One Bank USA N.A.:
2.150%, 11–21–18		3,150		3,126
2.250%, 2–13–19		4,000		3,972
Charles Schwab Corp. (The),
2.200%, 7–25–18		1,000		1,007
Discover Bank,
2.000%, 2–21–18		3,100		3,087
Ford Motor Credit Co. LLC,
3.875%, 1–15–15		1,000		1,024
General Motors Financial Co., Inc.,
2.750%, 5–15–16		1,086		1,100
IntercontinentalExchange Group, Inc.,
2.500%, 10–15–18		1,700		1,719
SLM Corp.,
4.875%, 6–17–19		3,000		3,049
Total System Services, Inc.,
2.375%, 6–1–18		5,538		5,461
				28,468
Data Processing & Outsourced Services – 0.1%
Fidelity National Financial, Inc.,
6.600%, 5–15–17		900		1,021
Department Stores – 0.1%
Macy’s Retail Holdings, Inc.,
3.875%, 1–15–22		1,000		1,031
Distillers & Vintners – 0.4%
Beam, Inc.:
1.875%, 5–15–17		800		801
1.750%, 6–15–18		1,000		974
Brown-Forman Corp.,
1.000%, 1–15–18		3,000		2,913
Constellation Brands, Inc.,
3.750%, 5–1–21		3,170		3,099
				7,787

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Distributors – 0.0%
LKQ Corp.,
4.750%, 5–15–23 (B)	$	680	$	644
Diversified Banks – 4.5%
ABN AMRO Bank N.V.,
2.500%, 10–30–18 (B)		6,200		6,192
Bank of America Corp.:
1.054%, 3–22–16 (C)		4,000		4,028
2.000%, 1–11–18		2,500		2,496
Bank of New York Mellon Corp. (The):
0.700%, 10–23–15		1,000		1,002
2.100%, 1–15–19		6,000		5,966
Bank of Nova Scotia (The): 1.450%, 4–25–18		2,500		2,452
2.050%, 10–30–18		5,000		4,984
Barclays Bank plc, 2.500%, 2–20–19		2,600		2,605
BNP Paribas, 2.450%, 3–17–19		6,500		6,511
BNP Paribas S.A., 5.186%, 6–29–49 (B)		4,000		4,105
Commonwealth Bank of Australia, 2.250%, 3–13–19		4,750		4,729
HSBC USA, Inc., 1.625%, 1–16–18		1,850		1,835
Lloyds Bank plc (GTD by Lloyds Banking Group plc), 2.300%, 11–27–18		2,000		1,999
National Australia Bank Ltd., 2.300%, 7–25–18		2,750		2,774
Nordea Bank AB, 1.625%, 5–15–18 (B)		4,500		4,427
Skandinaviska Enskilda Banken AB, 2.375%, 3–25–19 (B)		4,000		3,989
Societe Generale N.A., 5.922%, 4–29–49 (B)		11,000		11,702
Swedbank AB (publ), 1.750%, 3–12–18 (B)		5,000		4,951
Wells Fargo & Co.: 1.500%, 1–16–18		1,000		991
2.150%, 1–15–19		2,000		1,996
Westpac Banking Corp., 2.250%, 7–30–18		5,000		5,032
				84,766
Diversified Chemicals – 0.1%
Airgas, Inc., 1.650%, 2–15–18		1,250		1,224
Diversified Metals & Mining – 0.1%
Freeport-McMoRan Copper & Gold, Inc., 2.375%, 3–15–18		450		449
Teck Resources, 3.000%, 3–1–19		1,700		1,700
				2,149

26 ANNUAL REPORT 2014

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands)

MARCH 31, 2014

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Drug Retail – 0.0%
CVS Caremark Corp., 3.250%, 5–18–15	$	550	$	566
Electric Utilities – 0.5%
Electricite de France S.A., 2.150%, 1–22–19 (B)		4,000		3,981
PPL Energy Supply LLC, 4.600%, 12–15–21		2,800		2,825
Southern Co., (The), 2.450%, 9–1–18		2,800		2,840