N-14/A 1 d310754dn14a.htm IVY FUNDS Ivy Funds
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As filed with the U.S. Securities and Exchange Commission on September 6, 2017

Registration No. 333-219593

 

 

 

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

 

Form N-14

 

 

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 

  Pre-Effective Amendment No. 1  
  Post-Effective Amendment No.  

 

 

IVY FUNDS

(a Delaware statutory trust)

(Exact Name as Specified in Charter)

 

 

6300 Lamar Avenue, Overland Park, Kansas

(Address of Principal Executive Office)

66202-4200

(Zip Code)

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

Philip A. Shipp

6300 Lamar Avenue

Overland Park, Kansas 66202-4200

(Name and Address of Agent for Service)

 

 

Approximate Date of Public Offering: As soon as practicable after this Registration Statement becomes effective under the Securities Act of 1933.

Title of Securities Being Offered: Shares of Beneficial Interest, no par value.

An indefinite amount of the Registrant’s securities has been registered under the Securities Act of 1933 pursuant to Rule 24-f2 under the Investment Company Act of 1940. In reliance upon such Rule, no filing fee is paid at this time.

Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until Registrant shall file a further amendment that specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the 1933 Act, or until this Registration Statement shall become effective on such date as the Commission, acting pursuant to such Section 8(a), shall determine.

 

 

 


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THE WADDELL & REED ADVISORS FUNDS

Equity Funds:

Waddell & Reed Advisors Core Investment Fund

Waddell & Reed Advisors Dividend Opportunities Fund

Waddell & Reed Advisors Energy Fund

Waddell & Reed Advisors Tax-Managed Equity Fund

Waddell & Reed Advisors Value Fund

Fixed Income Funds:

Waddell & Reed Advisors Bond Fund

Waddell & Reed Advisors Global Bond Fund

Waddell & Reed Advisors Government Securities Fund

Waddell & Reed Advisors Municipal Bond Fund

6300 Lamar Avenue, Overland Park, Kansas 66202-4200

Dear Shareholder:

I am writing to inform you that in mid-October 2017 the Waddell & Reed Advisors Funds named above (each a “WRA Fund,” collectively, the “WRA Funds”), each a series of Waddell & Reed Advisors Funds (the “WRA Trust”), will be reorganized into corresponding series (each an “Ivy Fund,” collectively, the “Ivy Funds”) of Ivy Funds, an affiliated investment company.

The Ivy Funds are managed by Ivy Investment Management Company (“IICO”), an affiliate of Waddell & Reed Investment Management Company (“WRIMCO”), the investment manager of the WRA Funds. Both IICO and WRIMCO are subsidiaries of Waddell & Reed Financial, Inc.

The Board of Trustees of WRA Trust unanimously approved the reorganization as being in the best interests of the WRA Funds after considering each WRA Fund in comparison to its corresponding Ivy Fund. You will not incur any sales loads or similar transaction costs in connection with the reorganization. The attached Combined Prospectus and Information Statement contains further information about the reorganization and the Ivy Funds. Please read it carefully.

You do not need to take any action regarding your account. Your shares of a WRA Fund will automatically be converted, at net asset value, into shares of equal net asset value of the corresponding Ivy Fund on October 16, 2017, as discussed in more detail below. Please note that the reorganization is not a taxable event, but redeeming or exchanging your


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shares prior to the reorganization may be a taxable event depending on your individual tax situation. If you have any questions regarding the enclosed Combined Prospectus and Information Statement, please call Waddell & Reed Services Company at (800) 777-6472 or your financial advisor.

Sincerely,

Phillip J. Sanders, President

September 8, 2017


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Combined Prospectus and Information Statement

September 8, 2017

WADDELL & REED ADVISORS FUNDS

IVY FUNDS

6300 Lamar Ave

Shawnee Mission, Kansas 66201-9217

1-800-777-6472

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SYNOPSIS

     5  

COMPARISON OF THE FUNDS

     14  

INFORMATION ABOUT THE REORGANIZATION

     89  

APPENDIX A – AGREEMENT AND PLAN OF REORGANIZATION

     A-1  

APPENDIX B – FINANCIAL HIGHLIGHTS

     B-1  

APPENDIX C – DESCRIPTIONS OF PRINCIPAL INVESTMENT RISKS

     C-1  

This Combined Prospectus and Information Statement (“Prospectus/Information Statement”) is being sent to shareholders of the Waddell & Reed Advisors (“WRA”) Bond Fund, WRA Core Investment Fund, WRA Dividend Opportunities Fund, WRA Energy Fund, WRA Global Bond Fund, WRA Government Securities Fund, WRA Municipal Bond Fund, WRA Tax-Managed Equity Fund and WRA Value Fund (each, a “WRA Fund,” and collectively, the “WRA Funds”).

This Prospectus/Information Statement contains information you should know about the Agreement and Plan of Reorganization (the “Reorganization Plan”) relating to the proposed reorganization (the “Reorganization”) by and between Waddell & Reed Advisors Funds (the “WRA Trust”) and Ivy Funds (the “Ivy Trust”). The Reorganization involves the transfer of all of the assets and liabilities attributable to Class A, Class B, Class C and Class Y shares of each WRA Fund to a corresponding investment portfolio of the Ivy Trust (each, an “Ivy Fund,” and collectively, the “Ivy Funds”), in exchange for Class A, Class B, Class C and Class I shares of the corresponding Ivy Fund with an aggregate net asset value (“NAV”) equal to the net value of the assets and liabilities transferred by each WRA Fund. If the Reorganization occurs, you will become a shareholder of an Ivy Fund as set forth in the below chart. After that exchange, shares of each class of an Ivy Fund received

 

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by a WRA Fund will be distributed pro rata to such WRA Fund’s shareholders of the corresponding class in liquidation of the WRA Fund. (The WRA Funds and Ivy Funds are sometimes referred to as “Funds”). WRA Trust and the Ivy Trust are both registered, open-end management investment companies organized as Delaware statutory trusts. The investment objective of each WRA Fund is identical to its corresponding Ivy Fund.

Under the Reorganization Plan, each WRA Fund will be reorganized into the Ivy Fund listed directly opposite such WRA Fund in the table below.

 

WRA Funds

  

Ivy Funds

Equity Funds

  

WRA Core Investment Fund

   Ivy Core Equity Fund

WRA Dividend Opportunities Fund

   Ivy Dividend Opportunities Fund

WRA Energy Fund

   Ivy Energy Fund

WRA Tax-Managed Equity Fund

   Ivy Tax-Managed Equity Fund

WRA Value Fund

   Ivy Value Fund

Fixed Income Funds

  

WRA Bond Fund

   Ivy Bond Fund

WRA Global Bond Fund

   Ivy Global Bond Fund

WRA Government Securities Fund

   Ivy Government Securities Fund

WRA Municipal Bond Fund

   Ivy Municipal Bond Fund

This Prospectus/Information Statement provides information that a WRA Fund shareholder should know about the Reorganization and sets forth concisely information about the Ivy Funds that a prospective investor ought to know before investing. The Prospectus/Information Statement should be retained for future reference. It is both an information statement for the Reorganization and a prospectus for the Ivy Funds. In connection with the Reorganization, the Ivy Trust has recently organized the Ivy Bond Fund and Ivy Government Securities Fund (the “Shell Ivy Funds”) which currently have no assets or liabilities. Each Shell Ivy Fund has been created in connection with the Reorganization Plan to continue the business of its corresponding WRA Fund and will have an identical investment objective, principal investment strategies and fundamental investment restrictions as its respective corresponding WRA Fund. The Shell Ivy Funds will not commence operations until the date of the Reorganization. (The Ivy Core Equity Fund, Ivy Dividend Opportunities Fund, Ivy Energy Fund, Ivy Global Bond Fund, Ivy Municipal Bond Fund, Ivy Tax-Managed Equity Fund and Ivy Value Fund may be referred to as the “Existing Ivy Funds”).

 

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The following documents have been filed with the Securities and Exchange Commission (the “SEC”) and are incorporated into this Prospectus/Information Statement by reference:

The Prospectus for the WRA Funds (equity funds) dated October 31, 2016, as supplemented to date (the “WRA Equity Prospectus”).

The Prospectus for the WRA Funds (fixed income funds), dated January 31, 2017, as supplemented to date (the “WRA Fixed Income Prospectus”).

The Prospectus for the Ivy Funds dated July 5, 2017, as supplemented to date (the “Existing Ivy Funds Prospectus”).

The Prospectus for the Ivy Bond and Ivy Government Securities Funds dated September 1, 2017, as supplemented to date (the “Shell Ivy Funds Prospectus”).

The Statement of Additional Information dated September 8, 2017 relating to the Reorganization (“SAI”).

The following documents have been filed with SEC and are incorporated by reference into the SAI:

The Statement of Additional Information for the WRA Funds, dated January 31, 2017, as supplemented to date (the “WRA SAI”).

The WRA Funds’ Annual Reports for the fiscal years ended June 30, 2017 (equity funds) and September 30, 2016 (fixed income funds) and the Semiannual Report for the period ended March 31, 2017 (fixed income funds).

The Statement of Additional Information for the Ivy Funds, dated July 5, 2017, as supplemented to date (the “Existing Ivy Funds SAI”).

The Statement of Additional Information for the Ivy Bond Fund and Ivy Government Securities Fund dated September 1, 2017, as supplemented to date (the “Shell Ivy Funds SAI”).

The Ivy Funds’ Annual Report for the fiscal year ended March 31, 2017.

The Shell Ivy Funds do not have any annual or semiannual reports because they have not yet commenced operations

 

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For a free copy of any of the documents listed above, you may call 1-800-777-6472, or you may write to the attention of WRA Funds at:

WRA Funds

6300 Lamar Avenue

P.O. Box 29217

Shawnee Mission, Kansas 66201-9217

The WRA Trust and Ivy Trust are each subject to the informational requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended (the “1940 Act”), and in accordance therewith files reports and other information with the SEC. You also may obtain many of these documents by accessing the Internet site for WRA Trust at www.waddell.com or the Ivy Trust at www.ivyinvestments.com. Text-only versions of the WRA Funds’ and Ivy Funds’ documents can be viewed online or downloaded from the EDGAR database on the SEC’s Internet site at www.sec.gov. You can review and copy information about the WRA Funds and Ivy Funds by visiting the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You can obtain copies, upon payment of a duplicating fee, by sending an e-mail request to publicinfo@sec.gov or by writing the SEC Public Reference Branch, Office of Consumer Affairs and Information Services, Securities and Exchange Commission, Washington, D.C. 20549. Information on the operations of the Public Reference Room may be obtained by calling 1.202.551.8090.

The SEC has not approved or disapproved these securities or determined if this Prospectus/Information Statement is truthful or complete. Any representation to the contrary is a criminal offense.

We are not asking you for a proxy or written consent and you are requested not to send us a proxy or written consent.

 

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SYNOPSIS

This Prospectus/Information Statement provides a brief overview of the key features and other matters typically of concern to shareholders affected by a reorganization of a mutual fund into another mutual fund. These responses are qualified in their entirety by the remainder of this Prospectus/Information Statement, which you should read carefully because it contains additional information and further details regarding the Reorganization. The description of the Reorganization is qualified by reference to the full text of the Reorganization Plan, which is attached as Appendix A.

WHAT IS HAPPENING?

The Board of Trustees of the WRA Trust (the “WRA Trust Board”) approved the Reorganization Plan, and the resulting Reorganization, in which each WRA Fund would be reorganized into a corresponding Ivy Fund. This means that an Ivy Fund would receive all of the assets and liabilities of the corresponding WRA Fund in exchange for shares of the Ivy Fund. Each WRA Fund, in turn, will distribute those Ivy Fund shares to its shareholders in liquidation and shareholders of a WRA Fund will become shareholders of the corresponding Ivy Fund. Your shares of a WRA Fund will then be cancelled. Pursuant to the Reorganization Plan, shares of a corresponding Ivy Fund that you will receive will have an aggregate NAV equal to the aggregate NAV of your WRA Fund shares as of the business day before the closing of the Reorganization. The Reorganization is currently scheduled to take place on or about October 16, 2017. You are not being asked to approve the Reorganization Plan or the Reorganization. Shareholder approval is not required.

The WRA Funds have the same investment objective and substantially similar principal investment strategies and identical principal investment risks as its corresponding Ivy Fund. Please see “COMPARISON OF THE FUNDS – Comparison of Investment Objectives, Comparison of Principal Investment Strategies and Comparison of Principal Investment Risks” for more information comparing the investment objectives, principal investment strategies and principal investment risks of each Fund.

 

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WHY WAS THE REORGANIZATION APPROVED?

The WRA Trust Board approved the Reorganization Plan and the Reorganization. In reviewing the Reorganization, the WRA Trust Board considered the following factors, among others:

 

   

Continuity of Investment Objectives, Principal Investment Strategies and Principal Investment Risks – Each WRA Fund has an identical investment objective, identical fundamental investment restrictions, either identical or substantially similar principal investment strategies, and identical principal investment risks as it corresponding Ivy Fund. The mirror-like nature of the Ivy Funds and WRA Funds will allow WRA shareholders to maintain continuity in their investment selection;

 

   

Potential Economies of Scale – The Reorganization of each WRA Fund is intended to create a larger fund in its corresponding Ivy Fund, which will permit fixed costs to be spread over a larger asset base, potentially resulting in economies of scale over time. In addition, a larger fund will more easily reach various breakpoints in service provider fee schedules;

 

   

Tax-Free Reorganization – The Reorganization is expected to be tax-free for shareholders of a WRA Fund who choose to remain a shareholder of the corresponding Ivy Fund, while a liquidation or shareholder redemption would be a realization event for tax purposes;

 

   

Reorganization Expenses Allocated Among the Funds and their Investment Managers. The total amount of the expenses for the Reorganization is estimated to be approximately $1.17 million. Ivy Investment Management Company (“IICO”), the investment manager of the Ivy Funds, will bear $200,000 of such expenses and Waddell & Reed Investment Management Company (“WRIMCO”) will bear $200,000 of such expenses. The remaining $770,000 of expenses will be evenly split between the WRA Funds and the Ivy Funds. This expense allocation will be made whether or not the Reorganization is consummated. The Board of the WRA Trust, the Board of the Ivy Trust and Fund management believed that a partial allocation of Reorganization expenses to each Fund was appropriate because the Reorganization is expected to be beneficial to each Fund and its shareholders. For a more detailed discussion of the

 

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considerations of the Board, see the section below titled “INFORMATION ABOUT THE REORGANIZATION-Reasons for the Reorganization.”

 

   

Same or Lower Overall Expenses – By reorganizing into an Ivy Fund, former WRA Fund shareholders will be subject to the same or lower ongoing expenses than those imposed by the WRA Fund. For WRA Funds that will be reorganizing into Ivy Funds where the current annual fund operating expenses of a share class of an Ivy Fund are higher than its corresponding share class of a WRA Fund, IICO has agreed to limit the operating expenses that will be charged to shareholders of such class of shares of an Ivy Fund to be equal to any lower expense ratio of the corresponding class of a WRA Fund through July 31, 2019;

 

   

Continuity of Portfolio Management – Each of the WRA Funds will be reorganizing into a corresponding Ivy Fund that has the same portfolio manager; and

 

   

No Shareholder Dilution – The Reorganization will occur at the NAV of each entity and therefore will not dilute the interests of the WRA Fund shareholders.

Please review “Reasons for the Reorganization” in the “INFORMATION ABOUT THE REORGANIZATION” section in this Prospectus/Information Statement for more information regarding the factors considered by the WRA Trust Board.

WHAT IVY FUND SHARES WILL I RECEIVE IN THE REORGANIZATION AND ARE THEIR CHARACTERISTICS DIFFERENT FROM MY CURRENT SHARES?

Under the Reorganization Plan, Class A, Class B, Class C and Class Y shares of each WRA Fund will be reorganized into the corresponding Class A, Class B, Class C and Class I shares of the corresponding Ivy Fund.

The shares of an Ivy Fund you receive in exchange for your WRA Fund shares will have an aggregate NAV equal to the aggregate NAV of your respective WRA Fund shares as of the close of business on the business day before the closing of the Reorganization. You will have voting rights similar to those you currently have, but as a shareholder of an Ivy Fund. For more information, please see “COMPARISON OF THE FUNDS – Comparison of Business Structures, Shareholder Rights and Applicable Law.” The purchase, redemption and exchange privileges of an Ivy Fund are substantially similar to those currently offered by the

 

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WRA Fund. All shareholder features that you have elected will remain available and in effect after the Reorganization unless you direct that those elections be changed.

Depending on the particular Ivy Fund, distributions by an Ivy Fund may be paid on a different schedule after the Reorganization. Each WRA Fund and Ivy Fund distributes substantially all of its net investment income and net realized capital gains to its shareholders each year. For the schedule of these distributions for each WRA Fund and its corresponding Ivy Fund, see “COMPARISON OF THE FUNDS- Share Class Characteristics, Shareholder Transactions and Services-Dividends and Other Distributions.” Net realized capital gains (and any gains from foreign currency transactions) ordinarily are distributed by each Fund in December.

For more information on the characteristics of the Ivy Fund shares you will receive in comparison to the corresponding WRA Fund shares you currently own, please see the section “Shares You Will Receive” in the “INFORMATION ABOUT THE REORGANIZATION” section of this Prospectus/Information Statement.

HOW DO THE FUNDS’ INVESTMENT OBJECTIVES, FUNDAMENTAL INVESTMENT RESTRICTIONS, PRINCIPAL INVESTMENT STRATEGIES AND PRINCIPAL INVESTMENT RISKS COMPARE?

Investment Objectives and Fundamental Investment Restrictions:

The investment objectives and fundamental investment restrictions of each WRA Fund and its corresponding Ivy Fund are identical. For more information, see “COMPARISON OF THE FUNDS – Comparison of Investment Objectives” and COMPARISON OF THE FUNDS – Comparison of Fundamental Investment Restrictions.”

Principal Investment Strategies:

The principal investment strategies of the WRA Bond Fund and WRA Government Securities Fund (the “Continuing WRA Funds”) are identical to those of their corresponding Shell Ivy Fund because each Shell Ivy Fund has each been organized solely in connection with this Reorganization to acquire the assets and liabilities and continue the business of its corresponding WRA Fund.

The principal investment strategies of each of the WRA Funds other than the Continuing WRA Funds (i.e., WRA Core Investment Fund, WRA Dividend Opportunities Fund, WRA Energy Fund, WRA Tax-Managed

 

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Equity Fund, WRA Value Fund, WRA Global Bond Fund, and WRA Municipal Bond Fund collectively, the “Reorganizing WRA Funds”) are, in general substantially similar to those of its corresponding Ivy Fund. However, there are certain non-material differences between the principal investment strategies of certain Reorganizing WRA Funds and their corresponding Ivy Funds. For additional information, see “COMPARISON OF THE FUNDS- Comparison of Principal Investment Strategies.”

Principal Investment Risks:

The principal investment risks of each of the WRA Funds are identical to its corresponding Ivy Fund. For additional information, see “COMPARISON OF THE FUNDS-Comparison of Principal Investment Risks” and Appendix C-“Description of Principal Investment Risks.”

WILL THE REORGANIZATION RESULT IN A HIGHER INVESTMENT MANAGEMENT FEE RATE AND HIGHER FUND EXPENSE RATES?

No. For the Continuing WRA Funds reorganizing into a Shell Ivy Fund, the advisory fee rate and annual fund operating expense ratio of the corresponding Shell Ivy Fund will be the same after the Reorganization.

For Reorganizing WRA Funds that will be reorganizing into an Existing Ivy Fund, where the current annual fund operating expenses of a share class of an Ivy Fund are higher than the corresponding share class of the Existing WRA Fund Reorganization counterpart, IICO, the investment manager to the Ivy Funds, has agreed to limit the operating expenses that will be charged to shareholders of such class of shares of an Existing Ivy Fund to be equal to any lower expense ratio of the corresponding class of a Reorganizing WRA Fund through July 31, 2019.

Additional pro forma fee, expense, and financial information is included in the “COMPARISON OF THE FUNDS-Comparison of Shareholder Fees and Annual Fund Operating Expenses” section of this Prospectus/Information Statement.

 

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WHAT ARE THE FEDERAL INCOME TAX CONSEQUENCES OF THE REORGANIZATION?

The Reorganization is expected to be tax-free to shareholders for federal income tax purposes. This means that neither shareholders nor the WRA Funds expect to recognize a gain or loss as a result of the Reorganization.

Immediately prior to the Reorganization, each Reorganizing WRA Fund (i.e., WRA Core Investment Fund, WRA Dividend Opportunities Fund, WRA Energy Fund, WRA Tax-Managed Equity Fund, WRA Value Fund, WRA Global Bond Fund, and WRA Municipal Bond Fund) will declare and pay a distribution of substantially all net investment company taxable income, if any, net realized capital gains (after reduction by any available capital loss carry-forwards), if any, and at least 90 percent of its net tax-exempt income, if any, to its shareholders. The cost basis and holding period of a WRA Fund shares are expected to carry over to your new shares in the corresponding Ivy Fund.

WILL THE SERVICE PROVIDERS CHANGE?

WRIMCO currently serves as the investment manager to the WRA Funds. IICO currently serves as the investment manager to each of the Existing Ivy Funds and will continue to do so after the Reorganization. IICO will serve as the investment manager to each of the Shell Ivy Funds following the Reorganization. Both WRIMCO and IICO are affiliates of Waddell & Reed Financial, Inc. (“Waddell & Reed”). The portfolio manager for each of the WRA Funds is the same portfolio manager for the corresponding Ivy Fund. (See “COMPARISON OF THE FUNDS-Management of the Funds-Investment Manager/Portfolio Managers”).

Waddell & Reed, Inc. (“WRI”), serves as the WRA Funds’ principal underwriter and distributor. Ivy Distributors, Inc. (“IDI”), serves as the Ivy Funds’ principal underwriter and distributor and will serve as the Ivy Funds’ principal underwriter following the Reorganization. Both IDI and WRI are affiliates of Waddell & Reed. The WRA Funds and Ivy Funds have the same accounting services agent, transfer agent, custodian and independent registered public accounting firm. Upon completion of the Reorganization, the Ivy Funds will continue to engage their existing service providers. For more information, see “COMPARISON OF THE FUNDS-Management of the Funds-Other Service Providers.”

 

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WILL THERE BE ANY SALES LOAD, COMMISSION OR OTHER TRANSACTION FEE IN CONNECTION WITH THE REORGANIZATION?

No. There will be no sales charge, sales load, commission or other transactional fee in connection with the Reorganization. The full and fractional value of Class A, Class B, Class C and Class Y shares of a WRA Fund will be exchanged for full and fractional Class A, Class B, Class C and Class I shares, respectively of the corresponding Ivy Fund having approximately equal aggregate value, without any sales charge, sales load, commission or other transactional fee being imposed.

For Class B and Class C shares, or certain Class A shares that you received in connection with the Reorganization to which a contingent deferred sales charge (“CDSC”) would otherwise apply, the time period for the CDSC will continue to age from the date you purchased the respective shares of a WRA Fund. Class Y shares are not subject to a CDSC. The shares acquired in the Reorganization may be exchanged for shares of the same class of any other fund in the Ivy Family of Funds or WRA Trust without the payment of an additional initial sales charge or CDSC.

ARE THERE ANY SIGNIFICANT DIFFERENCES BETWEEN WRA FUND SHARES AND IVY FUND SHARES?

The procedures for purchasing, redeeming and exchanging your shares of any Ivy Fund will be the same after the Reorganization as they are currently for the corresponding WRA Fund. In addition, the sales charge, redemption fee, distribution plan and administrative services plan structures for the WRA Funds and Ivy Funds are identical. For more information, see the section entitled “COMPARISONS OF THE FUNDS- Share Class Characteristics, Shareholder Transactions and Services” and the Existing Ivy Funds Prospectus and Shell Ivy Funds Prospectus that accompanies this Prospectus/Information Statement.

WILL I NEED TO OPEN AN ACCOUNT IN AN IVY FUND PRIOR TO THE REORGANIZATION?

No. An account will be set up in your name and your shares of a WRA Fund will automatically be converted to corresponding shares of the corresponding Ivy Fund. You will receive confirmation following the Reorganization.

 

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WILL MY COST BASIS CHANGE AS A RESULT OF THE REORGANIZATION?

Your total cost basis is not expected to change as a result of the Reorganization. However, for shareholders of a Reorganizing WRA Fund (i.e., WRA Core Investment Fund, WRA Dividend Opportunities Fund, WRA Energy Fund, WRA Tax-Managed Equity Fund, WRA Value Fund, WRA Global Bond Fund, and WRA Municipal Bond Fund) that is being reorganized into a corresponding Existing Ivy Fund, the number of shares you hold after the Reorganization may be different than the number of shares you held prior to the Reorganization. As a result, your average cost basis per share may change. Since the Reorganization is expected to be treated as a tax-free reorganization for the WRA Funds, shareholders should not recognize any capital gain or loss as a direct result of the Reorganization.

WILL THE FUNDS PAY FEES ASSOCIATED WITH THE REORGANIZATION?

Yes. The total amount of the expenses for the Reorganization is estimated to be approximately $1.17 million. IICO, the investment manager of the Ivy Funds, will bear $200,000 of such expenses and WRIMCO will bear $200,000 of such expenses. The remaining $770,000 of expenses will be evenly split between the WRA Funds and the Ivy Funds.

WHEN WILL THE REORGANIZATION TAKE PLACE?

The Reorganization will occur on or about the closing date, which is currently scheduled for October 16, 2017 (the “Closing Date”). Shortly after completion of the Reorganization, affected shareholders will receive a confirmation statement reflecting their new Ivy Fund account number and number of shares owned.

CAN I STILL ADD TO MY EXISTING WRA FUND ACCOUNT UNTIL THE REORGANIZATION?

Yes. WRA Fund shareholders may continue to make additional investments until October 11, 2017, unless the WRA Trust Board determines to limit future investments to ensure a smooth transition of shareholder accounts or for any other reason. In anticipation of the Reorganization, the WRA Funds are expected to be closed to new shareholders as of October 2, 2017.

 

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WHAT IF I WANT TO EXCHANGE MY SHARES INTO ANOTHER WRA FUND IN THE WRA TRUST PRIOR TO THE REORGANIZATION?

You may exchange your shares into another fund of the WRA Trust before the Closing Date in accordance with your pre-existing exchange privileges. If you choose to exchange your shares of a WRA Fund for another fund in the WRA Family of Funds, your request will be treated as a normal exchange of shares and will be a taxable transaction unless your shares are held in a tax-deferred account, such as an individual retirement account (“IRA”). Exchanges may be subject to minimum investment requirements, sales loads, and redemption fees. This is not an offer to sell shares of other funds of the WRA Trust, it is for informational purposes only. Before exchanging into a fund, please read its prospectus carefully. You should also be aware that each of the WRA Funds listed on the front page cover of this Prospectus/Information Statement will be reorganized into a corresponding Ivy Fund so ultimately your investment will be reorganized into another Ivy Fund.

WHY ARE SHAREHOLDERS NOT BEING ASKED TO VOTE ON THE REORGANIZATION?

The 1940 Act and the WRA Trust’s Trust Instrument (the “WRA Trust Instrument”) each permit reorganizations of a WRA Fund to occur without seeking a shareholder vote provided that certain conditions are met, including with regard to regulations under the 1940 Act: (1) the fundamental investment policies of the acquired fund (i.e., policies that may not be changed without a shareholder vote) are not materially different from the acquiring fund; (2) the acquired fund’s investment advisory agreement is not materially different from the acquiring fund’s investment advisory agreement; (3) the independent directors of the acquired fund will comprise a majority of the independent directors of the acquiring fund; and (4) Rule 12b-1 distribution fees of the acquired fund are no greater than the Rule 12b-1 distribution fees of the acquiring fund. The conditions permitting the Reorganization to occur without seeking a shareholder vote have been met by the WRA Funds and the Ivy Funds.

 

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COMPARISON OF THE FUNDS

This section provides a comparison of each WRA Fund and its corresponding Ivy Fund, including but not limited to, each Fund’s shareholder fees and annual fund operating expenses, investment objective, principal investment strategies, principal investment risks, fundamental investment restrictions, investment advisory fees, and historical investment performance. Please note that this is only a brief discussion and is qualified in its entirety by reference to the prospectuses of the WRA Funds and Ivy Funds incorporated herein by reference. There is no assurance that a Fund will achieve its stated objective.

Comparison of Shareholder Fees and Annual Fund Operating Expenses

Shareholder fees are fees paid directly from your investment. Annual fund operating expenses are paid out of a Fund’s assets and include fees for portfolio management and administrative services, including recordkeeping, accounting and other shareholder services. You do not pay these fees directly, but as the examples in the table below show, these costs are borne indirectly by all shareholders.

The Annual Fund Operating Expense tables below allow a shareholder to compare the sales charges, management fees and expense ratios of each WRA Fund with its corresponding Ivy Fund and to analyze the estimated expenses that each Ivy Fund expects to bear following the Reorganization. The shareholder transaction expenses presented below show the maximum sales charge (load) on purchases of Fund shares as a percentage of offering price, and the maximum CDSC on redemption of Fund shares as a percentage of the amount invested or their redemption value, as applicable. However, you will not have to pay any sales charge on any shares of the Ivy Fund received as part of the Reorganization. Annual Fund Operating Expenses are paid by each Fund. They include management fees, administrative costs and distribution and shareholder servicing fees, including pricing and custody services. In addition, following the presentation of that information, Annual Fund Operating Expenses (and related Example Expenses) are presented on a pro forma combined basis which assumes the consummation of the Reorganization.

The Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement ratios for the Ivy Core Equity Fund and Ivy Dividend Opportunities Fund shown below do not correlate to the expense ratios shown in the Financial Highlights table in Appendix B because it has been restated to reflect a change in the contractual class waiver.

 

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WRA Core Investment Fund into Ivy Core Equity Fund

The Annual Fund Operating Expenses shown in the table below are based on expenses for the twelve-month period ended March 31, 2017, for the WRA Core Investment Fund and the Ivy Core Equity Fund. Also shown are the Annual Fund Operating Expenses projected for the Ivy Core Equity Fund on a pro forma basis after giving effect to the proposed Reorganization, based on combined net assets as if the transaction had occurred on April 1, 2016 and had a year of combined operations.

 

    WRA Core Investment Fund     Ivy Core Equity Fund     Ivy Core Equity Fund after
Reorganization with the WRA
Core Investment Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Shareholder Fees (fees paid directly from your investment)

                       

Maximum Sales Charge (Load) imposed on purchases (as a % of offering price)

    5.75     None       None       None       5.75     None       None       None       5.75     None       None       None  

Maximum Deferred Sales Charge1 (Load) (as a % of lesser of amount invested or redemption value)

    1.00     5.00     1.00     None       1.00     5.00     1.00     None       1.00     5.00     1.00     None  

Maximum Account Fee

  $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None  

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

                       

Management Fee

    0.63     0.63     0.63     0.63     0.70     0.70     0.70     0.70     0.61     0.61     0.61     0.61

Distribution and Service (12b-1) Fees

    0.25     1.00     1.00     None       0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00

Other Expenses

    0.18     0.64     0.41     0.20     0.26     0.43     0.22     0.21     0.19     0.53     0.23     0.19

Total Annual Fund Operating Expenses

    1.06     2.27 %3      2.04 %3      0.83     1.21 %4      2.13     1.92     0.91 %4      1.05 %5      2.14 %5      1.84     0.80

 

15


Table of Contents
    WRA Core Investment Fund     Ivy Core Equity Fund     Ivy Core Equity Fund after
Reorganization with the WRA
Core Investment Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Fee Waiver and/or Expense Reimbursement

    0.02     0.04 %3      0.02 %3      None       0.06 %4      None       None       0.07 %4      0.01 %5      0.01 %5      None       None  

Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement

    1.04     2.23 %3      2.02 %3      0.83     1.15 %4      2.13     1.92     0.84 %4      1.04 %5      2.13 %5      1.84     0.80

 

1 

For Class A shares, a 1% CDSC is only imposed on shares that were purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

2 

With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 at the start of business on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20.

3 

Through October 31, 2017, WRIMCO, WRI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class B shares at 2.23% and Class C shares at 2.02%. Prior to that date, the expense limitation may not be terminated without the consent of the WRA Trust Board.

4 

Through July 31, 2018, IICO, IDI and/or Waddell & Reed Services Company, doing business as WI Services Company (“WISC”), the Funds’ transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class A shares at 1.15% and Class I shares at 0.84%. Prior to that date, the expense limitation may not be terminated without the consent of the Ivy Trust Board.

5

Through July 31, 2019, IICO, IDI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses for Class A shares at 1.04% and Class B shares at 2.13%. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Ivy Trust Board.

 

16


Table of Contents

Examples:

These Examples are intended to help you compare the cost of investing in the WRA Core Investment Fund, the Ivy Core Equity Fund and the Ivy Core Equity Fund after the Reorganization, with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the WRA Core Investment Fund, the Ivy Core Equity Fund and the Ivy Core Equity Fund after the Reorganization for the time periods indicated and reinvest all dividends and distributions. The Examples also assume that your investment has a 5% return each year, that the Funds’ operating expenses without waivers remain the same and that expenses were capped for the periods indicated above. The pro forma expense examples reflect the expense limitation agreement in effect through July 31, 2019. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

If shares are redeemed:

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Core Investment Fund

  $ 675     $ 891     $ 1,124     $ 1,793  

Ivy Core Equity Fund

  $ 685     $ 931     $ 1,196     $ 1,952  

Ivy Core Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 675     $ 888     $ 1,119     $ 1,782  

Class B Shares

       

WRA Core Investment Fund

  $ 626     $ 1,005     $ 1,311     $ 2,297  

Ivy Core Equity Fund

  $ 616     $ 967     $ 1,244     $ 2,227  

Ivy Core Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 616     $ 968     $ 1,247     $ 2,193  

Class C Shares

       

WRA Core Investment Fund

  $ 205     $ 638     $ 1,096     $ 2,367  

Ivy Core Equity Fund

  $ 195     $ 603     $ 1,037     $ 2,243  

Ivy Core Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 187     $ 579     $ 995     $ 2,159  

Class Y Shares/Class I Shares

       

WRA Core Investment Fund

  $ 85     $ 265     $ 460     $ 1,025  

Ivy Core Equity Fund

  $ 86     $ 283     $ 497     $ 1,113  

Ivy Core Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 82     $ 255     $ 444     $ 990  

 

17


Table of Contents

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

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Core Investment Fund

  $ 675     $ 891     $ 1,124     $ 1,793  

Ivy Core Equity Fund

  $ 685     $ 931     $ 1,196     $ 1,952  

Ivy Core Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 675     $ 888     $ 1,119     $ 1,782  

Class B Shares

       

WRA Core Investment Fund

  $ 226     $ 705     $ 1,211     $ 2,297  

Ivy Core Equity Fund

  $ 216     $ 667     $ 1,144     $ 2,227  

Ivy Core Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 216     $ 668     $ 1,147     $ 2,193  

Class C Shares

       

WRA Core Investment Fund

  $ 205     $ 638     $ 1,096     $ 2,367  

Ivy Core Equity Fund

  $ 195     $ 603     $ 1,037     $ 2,243  

Ivy Core Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 187     $ 579     $ 995     $ 2,159  

Class Y Shares/Class I Shares

       

WRA Core Investment Fund

  $ 85     $ 265     $ 460     $ 1,025  

Ivy Core Equity Fund

  $ 86     $ 283     $ 497     $ 1,113  

Ivy Core Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 82     $ 255     $ 444     $ 990  

 

18


Table of Contents

WRA Dividend Opportunities Fund into Ivy Dividend Opportunities Fund

The Annual Fund Operating Expenses shown in the table below are based on expenses for the twelve-month period ended March 31, 2017, for the WRA Dividend Opportunities Fund and the Ivy Dividend Opportunities Fund. Also shown are the Annual Fund Operating Expenses projected for the Ivy Dividend Opportunities Fund on a pro forma basis after giving effect to the proposed Reorganization, based on combined net assets as if the transaction had occurred on April 1, 2016 and had a year of combined operations.

 

    WRA Dividend Opportunities
Fund
    Ivy Dividend Opportunities
Fund
    Ivy Dividend Opportunities
Fund after Reorganization with
the WRA Dividend
Opportunities Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Shareholder Fees (fees paid directly from your investment)

                       

Maximum Sales Charge (Load) imposed on purchases (as a % of offering price)

    5.75     None       None       None       5.75     None       None       None       5.75     None       None       None  

Maximum Deferred Sales Charge1 (Load) (as a % of lesser of amount invested or redemption value)

    1.00     5.00     1.00     None       1.00     5.00     1.00     None       1.00     5.00     1.00     None  

Maximum Account Fee

  $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None  

 

19


Table of Contents
    WRA Dividend Opportunities
Fund
    Ivy Dividend Opportunities
Fund
    Ivy Dividend Opportunities
Fund after Reorganization with
the WRA Dividend
Opportunities Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

                       

Management Fee

    0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70

Distribution and Service (12b-1) Fees

    0.25     1.00     1.00     None       0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00

Other Expenses

    0.29     0.76     0.37     0.22     0.31     0.34     0.23     0.25     0.29     0.41     0.22     0.22

Total Annual Fund Operating Expenses

    1.24     2.46     2.07     0.92     1.26     2.04     1.93     0.95     1.24 %3      2.11 %3      1.92     0.92 %3 

Fee Waiver and/or Expense Reimbursement

    None       None       None       None       None       None       None       None       None 3      0.07 %3      None       None 3 

Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement

    1.24     2.46     2.07     0.92     1.26     2.04     1.93     0.95     1.24 %3      2.04 %3      1.92     0.92 %3 

 

1 

For Class A shares, a 1% CDSC is only imposed on shares that were purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

2 

With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 at the start of business on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20.

3

Through July 31, 2019, IICO, IDI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses for Class A shares at 1.24%, Class B shares at 2.04%, and Class I shares at 0.92%. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Ivy Trust Board.

 

20


Table of Contents

Examples:

These Examples are intended to help you compare the cost of investing in the WRA Dividend Opportunities Fund, the Ivy Dividend Opportunities Fund and the Ivy Dividend Opportunities Fund after the Reorganization, with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the WRA Dividend Opportunities Fund, the Ivy Dividend Opportunities Fund and the Ivy Dividend Opportunities Fund after the Reorganization for the time periods indicated and reinvest all dividends and distributions. The Examples also assume that your investment has a 5% return each year, that the Funds’ operating expenses without waivers remain the same and that expenses were capped for the periods indicated above. The pro forma expense examples reflect the expense limitation agreement in effect through July 31, 2019. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

If shares are redeemed:

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Dividend Opportunities Fund

  $ 694     $ 946     $ 1,217     $ 1,989  

Ivy Dividend Opportunities Fund

  $ 696     $ 952     $ 1,227     $ 2,010  

Ivy Dividend Opportunities Fund (pro forma, assuming consummation of the Reorganization)

  $ 694     $ 946     $ 1,217     $ 1,989  

Class B Shares

       

WRA Dividend Opportunities Fund

  $ 649     $ 1,067     $ 1,411     $ 2,494  

Ivy Dividend Opportunities Fund

  $ 607     $ 940     $ 1,198     $ 2,169  

Ivy Dividend Opportunities Fund (pro forma, assuming consummation of the Reorganization)

  $ 607     $ 947     $ 1,221     $ 2,208  

Class C Shares

       

WRA Dividend Opportunities Fund

  $ 210     $ 649     $ 1,114     $ 2,400  

Ivy Dividend Opportunities Fund

  $ 196     $ 606     $ 1,042     $ 2,254  

Ivy Dividend Opportunities Fund (pro forma, assuming consummation of the Reorganization)

  $ 195     $ 603     $ 1,037     $ 2,243  

Class Y Shares/Class I Shares

       

WRA Dividend Opportunities Fund

  $ 94     $ 293     $ 509     $ 1,131  

Ivy Dividend Opportunities Fund

  $ 97     $ 303     $ 525     $ 1,166  

Ivy Dividend Opportunities Fund (pro forma, assuming consummation of the Reorganization)

  $ 94     $ 293     $ 509     $ 1,131  

 

21


Table of Contents

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

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Dividend Opportunities Fund

  $ 694     $ 946     $ 1,217     $ 1,989  

Ivy Dividend Opportunities Fund

  $ 696     $ 952     $ 1,227     $ 2,010  

Ivy Dividend Opportunities Fund (pro forma, assuming consummation of the Reorganization)

  $ 694     $ 946     $ 1,217     $ 1,989  

Class B Shares

       

WRA Dividend Opportunities Fund

  $ 249     $ 767     $ 1,311     $ 2,494  

Ivy Dividend Opportunities Fund

  $ 207     $ 640     $ 1,098     $ 2,169  

Ivy Dividend Opportunities Fund (pro forma, assuming consummation of the Reorganization)

  $ 207     $ 647     $ 1,121     $ 2,208  

Class C Shares

       

WRA Dividend Opportunities Fund

  $ 210     $ 649     $ 1,114     $ 2,400  

Ivy Dividend Opportunities Fund

  $ 196     $ 606     $ 1,042     $ 2,254  

Ivy Dividend Opportunities Fund (pro forma, assuming consummation of the Reorganization)

  $ 195     $ 603     $ 1,037     $ 2,243  

Class Y Shares/Class I Shares

       

WRA Dividend Opportunities Fund

  $ 94     $ 293     $ 509     $ 1,131  

Ivy Dividend Opportunities Fund

  $ 97     $ 303     $ 525     $ 1,166  

Ivy Dividend Opportunities Fund (pro forma, assuming consummation of the Reorganization)

  $ 94     $ 293     $ 509     $ 1,131  

 

22


Table of Contents

WRA Energy Fund into Ivy Energy Fund

The Annual Fund Operating Expenses shown in the table below are based on expenses for the twelve-month period ended March 31, 2017, for the WRA Energy Fund and the Ivy Energy Fund. Also shown are the Annual Fund Operating Expenses projected for the Ivy Energy Fund on a pro forma basis after giving effect to the proposed Reorganization, based on combined net assets as if the transaction had occurred on April 1, 2016 and had a year of combined operations.

 

    WRA Energy Fund     Ivy Energy Fund     Ivy Energy Fund after
Reorganization with the WRA
Energy Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Shareholder Fees (fees paid directly from your investment)

                       

Maximum Sales Charge (Load) imposed on purchases (as a % of offering price)

    5.75     None       None       None       5.75     None       None       None       5.75     None       None       None  

Maximum Deferred Sales Charge1 (Load) (as a % of lesser of amount invested or redemption value)

    1.00     5.00     1.00     None       1.00     5.00     1.00     None       1.00     5.00     1.00     None  

Maximum Account Fee

  $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None  

 

23


Table of Contents
    WRA Energy Fund     Ivy Energy Fund     Ivy Energy Fund after
Reorganization with the WRA
Energy Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

                       

Management Fee

    0.85     0.85     0.85     0.85     0.85     0.85     0.85     0.85     0.85     0.85     0.85     0.85

Distribution and Service (12b-1) Fees

    0.25     1.00     1.00     None       0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00

Other Expenses

    0.48     1.27     0.65     0.30     0.31     0.44     0.26     0.23     0.37     0.55     0.27     0.24

Total Annual Fund Operating Expenses

    1.58     3.12     2.50     1.15     1.41     2.29     2.11     1.08     1.47 %3      2.40 %3      2.12 %3      1.09 %3 

Fee Waiver and/or Expense Reimbursement

    None       None       None       None       None       None       None       None       0.06 %3      0.11 %3      0.01 %3      0.01 %3 

Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement

    1.58     3.12     2.50     1.15     1.41     2.29     2.11     1.08     1.41 %3      2.29 %3      2.11 %3      1.08 %3 

 

1 

For Class A shares, a 1% CDSC is only imposed on shares that were purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

2 

With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 at the start of business on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20.

3 

Through July 31, 2019, IICO, IDI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses for Class A shares at 1.41%, Class B shares at 2.29%, Class C shares at 2.11%, and Class I shares at 1.08%. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Ivy Trust Board.

 

24


Table of Contents

Examples:

These Examples are intended to help you compare the cost of investing in the WRA Energy Fund, the Ivy Energy Fund and the Ivy Energy Fund after the Reorganization, with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the WRA Energy Fund, the Ivy Energy Fund and the Ivy Energy Fund after the Reorganization for the time periods indicated and reinvest all dividends and distributions. The Examples also assume that your investment has a 5% return each year, that the Funds’ operating expenses without waivers remain the same and that expenses were capped for the periods indicated above. The pro forma expense examples reflect the expense limitation agreement in effect through July 31, 2019. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

If shares are redeemed:

 

     1 Year      3 Years      5 Years      10 Years  

Class A Shares

           

WRA Energy Fund

   $ 726      $ 1,045      $ 1,386      $ 2,345  

Ivy Energy Fund

   $ 710      $ 996      $ 1,302      $ 2,169  

Ivy Energy Fund (pro forma, assuming consummation of the Reorganization)

   $ 710      $ 1,002      $ 1,321      $ 2,221  

Class B Shares

           

WRA Energy Fund

   $ 715      $ 1,263      $ 1,735      $ 3,071  

Ivy Energy Fund

   $ 632      $ 1,015      $ 1,325      $ 2,405  

Ivy Energy Fund (pro forma, assuming consummation of the Reorganization)

   $ 632      $ 1,027      $ 1,360      $ 2,488  

Class C Shares

           

WRA Energy Fund

   $ 253      $ 779      $ 1,331      $ 2,836  

Ivy Energy Fund

   $ 214      $ 661      $ 1,134      $ 2,441  

Ivy Energy Fund (pro forma, assuming consummation of the Reorganization)

   $ 214      $ 662      $ 1,137      $ 2,450  

Class Y Shares/Class I Shares

           

WRA Energy Fund

   $ 117      $ 365      $ 633      $ 1,398  

Ivy Energy Fund

   $ 110      $ 343      $ 595      $ 1,317  

Ivy Energy Fund (pro forma, assuming consummation of the Reorganization)

   $ 110      $ 345      $ 599      $ 1,327  

 

25


Table of Contents

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

 

     1 Year      3 Years      5 Years      10 Years  

Class A Shares

           

WRA Energy Fund

   $ 726      $ 1,045      $ 1,386      $ 2,345  

Ivy Energy Fund

   $ 710      $ 996      $ 1,302      $ 2,169  

Ivy Energy Fund (pro forma, assuming consummation of the Reorganization)

   $ 710      $ 1,002      $ 1,321      $ 2,221  

Class B Shares

           

WRA Energy Fund

   $ 315      $ 963      $ 1,635      $ 3,071  

Ivy Energy Fund

   $ 232      $ 715      $ 1,225      $ 2,405  

Ivy Energy Fund (pro forma, assuming consummation of the Reorganization)

   $ 232      $ 727      $ 1,260      $ 2,488  

Class C Shares

           

WRA Energy Fund

   $ 253      $ 779      $ 1,331      $ 2,836  

Ivy Energy Fund

   $ 214      $ 661      $ 1,134      $ 2,441  

Ivy Energy Fund (pro forma, assuming consummation of the Reorganization)

   $ 214      $ 662      $ 1,137      $ 2,450  

Class Y Shares/Class I Shares

           

WRA Energy Fund

   $ 117      $ 365      $ 633      $ 1,398  

Ivy Energy Fund

   $ 110      $ 343      $ 595      $ 1,317  

Ivy Energy Fund (pro forma, assuming consummation of the Reorganization)

   $ 110      $ 345      $ 599      $ 1,327  

 

26


Table of Contents

WRA Tax-Managed Equity Fund into Ivy Tax-Managed Equity Fund

The Annual Fund Operating Expenses shown in the table below are based on expenses for the twelve-month period ended March 31, 2017, for the WRA Tax-Managed Equity Fund and the Ivy Tax-Managed Equity Fund. Also shown are the Annual Fund Operating Expenses projected for the Ivy Tax-Managed Equity Fund on a pro forma basis after giving effect to the proposed Reorganization, based on combined net assets as if the transaction had occurred on April 1, 2016 and had a year of combined operations.

 

    WRA Tax-Managed Equity Fund     Ivy Tax-Managed Equity Fund     Ivy Tax-Managed Equity Fund
after Reorganization with the
WRA Tax-Managed Equity
Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Shareholder Fees (fees paid directly from your investment)

                       

Maximum Sales Charge (Load) imposed on purchases (as a % of offering price)

    5.75     None       None       None       5.75     None       None       None       5.75     None       None       None  

Maximum Deferred Sales Charge1 (Load) (as a % of lesser of amount invested or redemption value)

    1.00     5.00     1.00     None       1.00     5.00     1.00     None       1.00     5.00     1.00     None  

Maximum Account Fee

  $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None  

 

27


Table of Contents
    WRA Tax-Managed Equity Fund     Ivy Tax-Managed Equity Fund     Ivy Tax-Managed Equity Fund
after Reorganization with the
WRA Tax-Managed Equity
Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

                       

Management Fee

    0.65     0.65     0.65     0.65     0.65     0.65     0.65     0.65     0.65     0.65     0.65     0.65

Distribution and Service (12b-1) Fees

    0.25     1.00     1.00     None       0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00

Other Expenses

    0.18     0.54     0.30     0.24 %      0.30     0.26     0.31     0.31     0.18     0.24     0.26     0.23

Total Annual Fund Operating Expenses

    1.08     2.19     1.95     0.89     1.20     1.91     1.96     0.96     1.08 %4      1.89     1.91     0.88

Fee Waiver and/or Expense Reimbursement

    0.01     None       None       None       None       None       None       None       0.01 %4      None       None       None  

Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement

    1.07     2.19     1.95     0.89     1.20     1.91     1.96     0.96     1.07 %4      1.89     1.91     0.88

 

1 

For Class A shares, a 1% CDSC is only imposed on shares that were purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

2 

With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 at the start of business on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20.

3 

Other Expenses are based on estimated expenses for the Fund’s current fiscal year; actual expenses may vary.

4

Through July 31, 2019, IICO, IDI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses for Class A shares at 1.07%. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Ivy Trust Board.

 

28


Table of Contents

Examples:

These Examples are intended to help you compare the cost of investing in the WRA Tax-Managed Equity Fund, the Ivy Tax-Managed Equity Fund and the Ivy Tax-Managed Equity Fund after the Reorganization, with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the WRA Tax-Managed Equity Fund, the Ivy Tax-Managed Equity Fund and the Ivy Tax-Managed Equity Fund after the Reorganization for the time periods indicated and reinvest all dividends and distributions. The Examples also assume that your investment has a 5% return each year, that the Funds’ operating expenses without waivers remain the same and that expenses were capped for the periods indicated above. The pro forma expense examples reflect the expense limitation agreement in effect through July 31, 2019. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

If shares are redeemed:

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Tax-Managed Equity Fund

  $ 678     $ 898     $ 1,135     $ 1,816  

Ivy Tax-Managed Equity Fund

  $ 690     $ 934     $ 1,197     $ 1,946  

Ivy Tax-Managed Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 678     $ 897     $ 1,134     $ 1,815  

Class B Shares

       

WRA Tax-Managed Equity Fund

  $ 622     $ 985     $ 1,275     $ 2,242  

Ivy Tax-Managed Equity Fund

  $ 594     $ 900     $ 1,132     $ 2,048  

Ivy Tax-Managed Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 592     $ 894     $ 1,121     $ 2,000  

Class C Shares

       

WRA Tax-Managed Equity Fund

  $ 198     $ 612     $ 1,052     $ 2,275  

Ivy Tax-Managed Equity Fund

  $ 199     $ 615     $ 1,057     $ 2,285  

Ivy Tax-Managed Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 194     $ 600     $ 1,032     $ 2,233  

Class Y Shares/Class I Shares

       

WRA Tax-Managed Equity Fund

  $ 91     $ 284     $ 493     $ 1,096  

Ivy Tax-Managed Equity Fund

  $ 98     $ 306     $ 531     $ 1,178  

Ivy Tax-Managed Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 90     $ 281     $ 488     $ 1,084  

 

29


Table of Contents

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

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Tax-Managed Equity Fund

  $ 678     $ 898     $ 1,135     $ 1,816  

Ivy Tax-Managed Equity Fund

  $ 690     $ 934     $ 1,197     $ 1,946  

Ivy Tax-Managed Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 678     $ 897     $ 1,134     $ 1,815  

Class B Shares

       

WRA Tax-Managed Equity Fund

  $ 222     $ 685     $ 1,175     $ 2,242  

Ivy Tax-Managed Equity Fund

  $ 194     $ 600     $ 1,032     $ 2,048  

Ivy Tax-Managed Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 192     $ 594     $ 1,021     $ 2,000  

Class C Shares

       

WRA Tax-Managed Equity Fund

  $ 198     $ 612     $ 1,052     $ 2,275  

Ivy Tax-Managed Equity Fund

  $ 199     $ 615     $ 1,057     $ 2,285  

Ivy Tax-Managed Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 194     $ 600     $ 1,032     $ 2,233  

Class Y Shares/Class I Shares

       

WRA Tax-Managed Equity Fund

  $ 91     $ 284     $ 493       1,096  

Ivy Tax-Managed Equity Fund

  $ 98     $ 306     $ 531     $ 1,178  

Ivy Tax-Managed Equity Fund (pro forma, assuming consummation of the Reorganization)

  $ 90     $ 281     $ 488     $ 1,084  

 

30


Table of Contents

WRA Value Fund into Ivy Value Fund

The Annual Fund Operating Expenses shown in the table below are based on expenses for the twelve-month period ended March 31, 2017, for the WRA Value Fund and the Ivy Value Fund. Also shown are the Annual Fund Operating Expenses projected for the Ivy Value Fund on a pro forma basis after giving effect to the proposed Reorganization, based on combined net assets as if the transaction had occurred on April 1, 2016 and had a year of combined operations.

 

    WRA Value Fund     Ivy Value Fund     Ivy Value Fund after
Reorganization with the WRA
Value Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Shareholder Fees (fees paid directly from your investment)

                       

Maximum Sales Charge (Load) imposed on purchases (as a % of offering price)

    5.75     None       None       None       5.75     None       None       None       5.75     None       None       None  

Maximum Deferred Sales Charge1 (Load) (as a % of lesser of amount invested or redemption value)

    1.00     5.00     1.00     None       1.00     5.00     1.00     None       1.00     5.00     1.00     None  

Maximum Account Fee

  $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None  

 

31


Table of Contents
    WRA Value Fund     Ivy Value Fund     Ivy Value Fund after
Reorganization with the WRA
Value Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

                       

Management Fee

    0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70     0.70

Distribution and Service (12b-1) Fees

    0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00

Other Expenses

    0.31     0.78     0.43     0.22     0.38     0.66     0.27     0.27     0.31     0.66     0.26     0.22

Total Annual Fund Operating Expenses

    1.26     2.48     2.13     0.92     1.33     2.36     1.97     0.97     1.26 %4      2.36     1.96     0.92

Fee Waiver and/or Expense Reimbursement

    0.01 %3      0.00 %3      0.00 %3      0.00 %3      None       None       None       None       0.04 %4      None       None       None  

Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement

    1.25 %3      2.48 %3      2.13 %3      0.92 %3      1.33     2.36     1.97     0.97     1.22 %4      2.36 %4      1.96     0.92 %4 

 

1 

For Class A shares, a 1% CDSC is only imposed on shares that were purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

2

With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 at the start of business on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20.

3

Through October 31, 2017, WRIMCO, WRI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class A shares at 1.22%, Class B shares at 2.50%, Class C shares at 2.13% and Class Y shares at 0.92%. Prior to that date, the expense limitation may not be terminated without the consent of the WRA Trust Board. Expense limitation was not in effect from April 1, 2016 to September 30, 2016.

4

Through July 31, 2019, IICO, IDI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses for Class A shares at 1.22%, Class B shares at 2.36%, and Class I shares at 0.92%. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Ivy Trust Board.

 

32


Table of Contents

Examples:

These Examples are intended to help you compare the cost of investing in the WRA Value Fund, the Ivy Value Fund and the Ivy Value Fund after the Reorganization, with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the WRA Value Fund, the Ivy Value Fund and the Ivy Value Fund after the Reorganization for the time periods indicated and reinvest all dividends and distributions. The Examples also assume that your investment has a 5% return each year, that the Funds’ operating expenses without waivers remain the same and that expenses were capped for the periods indicated above. The pro forma expense examples reflect the expense limitation agreement in effect through July 31, 2019. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

If shares are redeemed:

 

     1 Year      3 Years      5 Years      10 Years  

Class A Shares

           

WRA Value Fund

   $ 695      $ 951      $ 1,226      $ 2,009  

Ivy Value Fund

   $ 703      $ 972      $ 1,262      $ 2,084  

Ivy Value Fund (pro forma, assuming consummation of the Reorganization)

   $ 692      $ 944      $ 1,219      $ 2,003  

Class B Shares

           

WRA Value Fund

   $ 651      $ 1,073      $ 1,421      $ 2,515  

Ivy Value Fund

   $ 639      $ 1,036      $ 1,360      $ 2,439  

Ivy Value Fund (pro forma, assuming consummation of the Reorganization)

   $ 639      $ 1,036      $ 1,360      $ 2,421  

Class C Shares

           

WRA Value Fund

   $ 216      $ 667      $ 1,144      $ 2,462  

Ivy Value Fund

   $ 200      $ 618      $ 1,062      $ 2,296  

Ivy Value Fund (pro forma, assuming consummation of the Reorganization)

   $ 199      $ 615      $ 1,057      $ 2,285  

Class Y Shares/Class I Shares

           

WRA Value Fund

   $ 94      $ 293      $ 509      $ 1,131  

Ivy Value Fund

   $ 99      $ 309      $ 536      $ 1,190  

Ivy Value Fund (pro forma, assuming consummation of the Reorganization)

   $ 94      $ 293      $ 509      $ 1,131  

 

33


Table of Contents

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

 

     1 Year      3 Years      5 Years      10 Years  

Class A Shares

           

WRA Value Fund

   $ 695      $ 951      $ 1,226      $ 2,009  

Ivy Value Fund

   $ 703      $ 972      $ 1,262      $ 2,084  

Ivy Value Fund (pro forma, assuming consummation of the Reorganization)

   $ 692      $ 944      $ 1,219      $ 2,003  

Class B Shares

           

WRA Value Fund

   $ 251      $ 773      $ 1,321      $ 2,515  

Ivy Value Fund

   $ 239      $ 736      $ 1,260      $ 2,439  

Ivy Value Fund (pro forma, assuming consummation of the Reorganization)

   $ 239      $ 736      $ 1,260      $ 2,421  

Class C Shares

           

WRA Value Fund

   $ 216      $ 667      $ 1,144      $ 2,462  

Ivy Value Fund

   $ 200      $ 618      $ 1,062      $ 2,296  

Ivy Value Fund (pro forma, assuming consummation of the Reorganization)

   $ 199      $ 615      $ 1,057      $ 2,285  

Class Y Shares/Class I Shares

           

WRA Value Fund

   $ 94      $ 293      $ 509      $ 1,131  

Ivy Value Fund

   $ 99      $ 309      $ 536      $ 1,190  

Ivy Value Fund (pro forma, assuming consummation of the Reorganization)

   $ 94      $ 293      $ 509      $ 1,131  

 

34


Table of Contents

WRA Bond Fund into Ivy Bond Fund

The Annual Fund Operating Expenses shown in the table below are based on expenses for the twelve-month period ended March 31, 2017 for the WRA Bond Fund and are based on estimates for the current year, for the Ivy Bond Fund which has not yet commenced operations. Also shown are the Annual Fund Operating Expenses projected for the Ivy Bond Fund on a pro forma basis after giving effect to the proposed Reorganization, based on combined net assets as if the transaction had occurred on April 1, 2016 and had a year of combined operations. Although the WRA Bond Fund is the accounting survivor of the Reorganization, fees have been restated to reflect the current fee arrangements of the Ivy Bond Fund.

 

    WRA Bond Fund     Ivy Bond Fund     Ivy Bond Fund after
Reorganization with the

WRA Bond Fund
(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Shareholder Fees (fees paid directly from your investment)

                       

Maximum Sales Charge (Load) imposed on purchases (as a % of offering price)

    5.75     None       None       None       5.75     None       None       None       5.75     None       None       None  

Maximum Deferred Sales Charge1 (Load) (as a % of lesser of amount invested or redemption value)

    1.00     5.00     1.00     None       1.00     5.00     1.00     None       1.00     5.00     1.00     None  

Maximum Account Fee

  $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None  

 

35


Table of Contents
    WRA Bond Fund     Ivy Bond Fund     Ivy Bond Fund after
Reorganization with the

WRA Bond Fund
(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

                       

Management Fee

    0.47     0.47     0.47     0.47     0.47     0.47     0.47     0.47     0.47     0.47     0.47     0.47

Distribution and Service (12b-1) Fees

    0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00

Other Expenses

    0.26     0.84     0.38     0.20     0.26     0.84     0.38     0.20     0.26     0.84     0.38     0.20

Total Annual Fund Operating Expenses

    0.98     2.31     1.85     0.67     0.98     2.31     1.85     0.67     0.98     2.31     1.85     0.67

Fee Waiver and/or Expense Reimbursement

    None       None       None       None       None       None       None       None       None       None       None       None  

Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement

    0.98     2.31     1.85     0.67     0.98     2.31     1.85     0.67     0.98     2.31     1.85     0.67

 

1 

For Class A shares, a 1% CDSC is only imposed on Class A shares that were purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

2 

With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 at the start of business on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20.

 

36


Table of Contents

Examples:

These Examples are intended to help you compare the cost of investing in the WRA Bond Fund, the Ivy Bond Fund and the Ivy Bond Fund after the Reorganization, with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the WRA Bond Fund, the Ivy Bond Fund and the Ivy Bond Fund after the Reorganization for the time periods indicated and reinvest all dividends and distributions. The Examples also assume that your investment has a 5% return each year, that the Funds’ operating expenses without waivers remain the same and that expenses were capped for the periods indicated above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

If shares are redeemed:

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Bond Fund

  $ 669     $ 869     $ 1,086     $ 1,707  

Ivy Bond Fund

  $ 669     $ 869     $ 1,086     $ 1,707  

Ivy Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 669     $ 869     $ 1,086     $ 1,707  

Class B Shares

       

WRA Bond Fund

  $ 634     $ 1,021     $ 1,335     $ 2,311  

Ivy Bond Fund

  $ 634     $ 1,021     $ 1,335     $ 2,311  

Ivy Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 634     $ 1,021     $ 1,335     $ 2,311  

Class C Shares

       

WRA Bond Fund

  $ 188     $ 582     $ 1,001     $ 2,169  

Ivy Bond Fund

  $ 188     $ 582     $ 1,001     $ 2,169  

Ivy Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 188     $ 582     $ 1,001     $ 2,169  

Class Y Shares/Class I Shares

       

WRA Bond Fund

  $ 68     $ 214     $ 373     $ 835  

Ivy Bond Fund

  $ 68     $ 214     $ 373     $ 835  

Ivy Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 68     $ 214     $ 373     $ 835  

 

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Table of Contents

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

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Bond Fund

  $ 669     $ 869     $ 1,086     $ 1,707  

Ivy Bond Fund

  $ 669     $ 869     $ 1,086     $ 1,707  

Ivy Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 669     $ 869     $ 1,086     $ 1,707  

Class B Shares

       

WRA Bond Fund

  $ 234     $ 721     $ 1,235     $ 2,311  

Ivy Bond Fund

  $ 234     $ 721     $ 1,235     $ 2,311  

Ivy Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 234     $ 721     $ 1,235     $ 2,311  

Class C Shares

       

WRA Bond Fund

  $ 188     $ 582     $ 1,001     $ 2,169  

Ivy Bond Fund

  $ 188     $ 582     $ 1,001     $ 2,169  

Ivy Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 188     $ 582     $ 1,001     $ 2,169  

Class Y Shares/Class I Shares

       

WRA Bond Fund

  $ 68     $ 214     $ 373     $ 835  

Ivy Bond Fund

  $ 68     $ 214     $ 373     $ 835  

Ivy Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 68     $ 214     $ 373     $ 835  

 

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Table of Contents

WRA Global Bond Fund into Ivy Global Bond Fund

The Annual Fund Operating Expenses shown in the table below are based on expenses for the twelve-month period ended March 31, 2017, for the WRA Global Bond Fund and the Ivy Global Bond Fund. Also shown are the Annual Fund Operating Expenses projected for the Ivy Global Bond Fund on a pro forma basis after giving effect to the proposed Reorganization, based on combined net assets as if the transaction had occurred on April 1, 2016 and had a year of combined operations.

 

    WRA Global Bond Fund     Ivy Global Bond Fund     Ivy Global Bond Fund after
Reorganization with the WRA
Global Bond Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Shareholder Fees (fees paid directly from your investment)

                       

Maximum Sales Charge (Load) imposed on purchases (as a % of offering price)

    5.75     None       None       None       5.75     None       None       None       5.75     None       None       None  

Maximum Deferred Sales Charge1 (Load) (as a % of lesser of amount invested or redemption value)

    1.00     5.00     1.00     None       1.00     5.00     1.00     None       1.00     5.00     1.00     None  

Maximum Account Fee

  $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None  

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

                       

Management Fee

    0.62     0.62     0.62     0.62     0.62     0.62     0.62     0.62     0.62     0.62     0.62     0.62

Distribution and Service (12b-1) Fees

    0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00

Other Expenses

    0.34     0.94     0.42     0.23     0.46     0.53     0.33     0.33     0.36     0.60     0.30     0.24

Total Annual Fund Operating Expenses

    1.21 %3      2.56 %3      2.04 %3      0.85 %3      1.33 %4      2.15 %4      1.95 %4      0.95 %4      1.23 %5      2.22 %5      1.92 %5      0.86 %5 

 

39


Table of Contents
    WRA Global Bond Fund     Ivy Global Bond Fund     Ivy Global Bond Fund after
Reorganization with the WRA
Global Bond Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Fee Waiver and/or Expense Reimbursement

    0.04 %3      0.07 %3      0.03 %3      0.03 %3      0.34 %4      0.41 %4      0.21 %4      0.21 %4      0.24 %5      0.48 %5      0.18 %5      0.12 %5 

Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement

    1.17 %3      2.49 %3      2.01 %3      0.82 %3      0.99 %4      1.74 %4      1.74 %4      0.74 %4      0.99 %5      1.74 %5      1.74 %5      0.74 %5 

 

1 

For Class A shares, a 1% CDSC is only imposed on Class A shares that were purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

2 

With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 at the start of business on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20.

3 

Through January 31, 2018, WRIMCO, WRI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class A shares at 1.15%, Class B shares at 2.50%, Class C shares at 2.03% and Class Y shares at 0.83%. Prior to that date, the expense limitation may not be terminated without the consent of the WRA Trust Board. Expense limitation was not in effect from April 1, 2016 to September 30, 2016.

4

Through July 31, 2018, IICO, IDI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class A shares at 0.99%, Class B and Class C shares at 1.74% and Class I shares at 0.74%. Prior to that date, the expense limitation may not be terminated without the consent of the Ivy Trust Board.

5

Through July 31, 2019, IICO, IDI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses for Class A shares at 0.99%, Class B shares at 1.74%, Class C shares at 1.74%, and Class I shares at 0.74%. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Ivy Trust Board.

 

40


Table of Contents

Examples:

These Examples are intended to help you compare the cost of investing in the WRA Global Bond Fund, the Ivy Global Bond Fund and the Ivy Global Bond Fund after the Reorganization, with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the WRA Global Bond Fund, the Ivy Global Bond Fund and the Ivy Global Bond Fund after the Reorganization for the time periods indicated and reinvest all dividends and distributions. The Examples also assume that your investment has a 5% return each year, that the Funds’ operating expenses without waivers remain the same and that expenses were capped for the periods indicated above. The pro forma expense examples reflect the expense limitation agreement in effect through July 31, 2019. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

If shares are redeemed:

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Global Bond Fund

  $ 687     $ 933     $ 1,198     $ 1,953  

Ivy Global Bond Fund

  $ 670     $ 941     $ 1,231     $ 2,056  

Ivy Global Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 670     $ 897     $ 1,167     $ 1,937  

Class B Shares

       

WRA Global Bond Fund

  $ 652     $ 1,090     $ 1,454     $ 2,558  

Ivy Global Bond Fund

  $ 577     $ 934     $ 1,217     $ 2,241  

Ivy Global Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 577     $ 899     $ 1,200     $ 2,224  

Class C Shares

       

WRA Global Bond Fund

  $ 204     $ 637     $ 1,095     $ 2,366  

Ivy Global Bond Fund

  $ 177     $ 592     $ 1,033     $ 2,258  

Ivy Global Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 177     $ 567     $ 1,002     $ 2,213  

Class Y Shares/Class I Shares

       

WRA Global Bond Fund

  $ 84     $ 268     $ 468     $ 1,046  

Ivy Global Bond Fund

  $ 76     $ 282     $ 505     $ 1,147  

Ivy Global Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 76     $ 250     $ 453     $ 1,038  

 

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Table of Contents

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

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Global Bond Fund

  $ 687     $ 933     $ 1,198     $ 1,953  

Ivy Global Bond Fund

  $ 670     $ 941     $ 1,231     $ 2,056  

Ivy Global Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 670     $ 897     $ 1,167     $ 1,937  

Class B Shares

       

WRA Global Bond Fund

  $ 252     $ 790     $ 1,354     $ 2,558  

Ivy Global Bond Fund

  $ 177     $ 634     $ 1,117     $ 2,241  

Ivy Global Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 177     $ 599     $ 1,100     $ 2,224  

Class C Shares

       

WRA Global Bond Fund

  $ 204     $ 637     $ 1,095     $ 2,366  

Ivy Global Bond Fund

  $ 177     $ 592     $ 1,033     $ 2,258  

Ivy Global Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 177     $ 567     $ 1,002     $ 2,213  

Class Y Shares/Class I Shares

       

WRA Global Bond Fund

  $ 84     $ 268     $ 468     $ 1,046  

Ivy Global Bond Fund

  $ 76     $ 282     $ 505     $ 1,147  

Ivy Global Bond Fund (pro forma, assuming consummation of the Reorganization)

  $ 76     $ 250     $ 453     $ 1,038  

 

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Table of Contents

WRA Government Securities Fund into Ivy Government Securities Fund

The Annual Fund Operating Expenses shown in the table below are based on expenses for the twelve-month period ended March 31, 2017 for the WRA Government Securities Fund and are based on estimates for the current year, for the Ivy Government Securities Fund which has not yet commenced operations. Also shown are the Annual Fund Operating Expenses projected for the Ivy Government Securities Fund on a pro forma basis after giving effect to the proposed Reorganization, based on combined net assets as if the transaction had occurred on April 1, 2016 and had a year of combined operations. Although the WRA Government Securities Fund is the accounting survivor of the Reorganization, fees have been restated to reflect the current fee arrangements of the Ivy Government Securities Fund.

 

    WRA Government Securities
Fund
    Ivy Government Securities
Fund
    Ivy Government Securities
Fund after Reorganization with
the WRA Government
Securities Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Shareholder Fees (fees paid directly from your investment)

                       

Maximum Sales Charge (Load) imposed on purchases (as a % of offering price)

    4.25     None       None       None       4.25     None       None       None       4.25     None       None       None  

Maximum Deferred Sales Charge1 (Load) (as a % of lesser of amount invested or redemption value)

    1.00     5.00     1.00     None       1.00     5.00     1.00     None       1.00     5.00     1.00     None  

Maximum Account Fee

  $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None  

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

                       

Management Fee

    0.50     0.50     0.50     0.50     0.50     0.50     0.50     0.50     0.50     0.50     0.50     0.50

Distribution and Service (12b-1) Fees

    0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00     0.25     1.00     1.00     0.00

Other Expenses

    0.34     0.94     0.42     0.23     0.32     0.71     0.45     0.24     0.32     0.71     0.45     0.24

Total Annual Fund Operating Expenses

    1.21 %3      2.56 %3      2.04 %3      0.85 %3      1.07 %4      2.21 %4      1.95 %4      0.74 %4      1.07 %4      2.21 %4      1.95 %4      0.74 %4 

 

43


Table of Contents
    WRA Government Securities
Fund
    Ivy Government Securities
Fund
    Ivy Government Securities
Fund after Reorganization with
the WRA Government
Securities Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Fee Waiver and/or Expense Reimbursement

    0.07 %3      0.08 %3      0.07 %3      0.02 %3      0.07 %4      0.08 %4      0.07 %4      0.02 %4      0.07 %4      0.08 %4      0.07 %4      0.02 %4 

Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement

    1.00 %3      2.13 %3      1.88 %3      0.72 %3      1.00 %4      2.13 %4      1.88 %4      0.72 %4      1.00 %4      2.13 %4      1.88 %4      0.72 %4 

 

1 

For Class A shares, a 1% CDSC is only imposed on Class A shares that were purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

2 

With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 at the start of business on the Friday prior to the last full week of September of each year, the account will be assessed an account fee of $20.

3 

Through January 31, 2018, WRIMCO, WRI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class A shares at 1.00%, Class B shares at 2.13%, Class C shares at 1.88% and Class Y shares at 0.72%. Prior to that date, the expense limitation may not be terminated without the consent of the WRA Trust Board.

4

Through July 31, 2019, IICO, IDI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses for Class A shares at 1.00%, Class B shares at 2.13%, Class C shares at 1.88%, and Class I shares at 0.72%. Prior to that date, the expense limitation may not be terminated by IICO, IDI, WISC or the Ivy Trust Board.

 

44


Table of Contents

Examples:

These Examples are intended to help you compare the cost of investing in the WRA Government Securities Fund, the Ivy Government Securities Fund and the Ivy Government Securities Fund after the Reorganization, with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the WRA Government Securities Fund, the Ivy Government Securities Fund and the Ivy Government Securities Fund after the Reorganization for the time periods indicated and reinvest all dividends and distributions. The Examples also assume that your investment has a 5% return each year, that the Funds’ operating expenses without waivers remain the same and that expenses were capped for the periods indicated above. The pro forma expense examples reflect the expense limitation agreement in effect through July 31, 2019. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

If shares are redeemed:

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Government Securities Fund

  $ 523     $ 744     $ 984     $ 1,669  

Ivy Government Securities Fund

  $ 523     $ 737     $ 977     $ 1,663  

Ivy Government Securities Fund (pro forma, assuming consummation of the Reorganization)

  $ 523     $ 737     $ 977     $ 1,663  

Class B Shares

       

WRA Government Securities Fund

  $ 616     $ 984     $ 1,277     $ 2,249  

Ivy Government Securities Fund

  $ 616     $ 975     $ 1,270     $ 2,242  

Ivy Government Securities Fund (pro forma, assuming consummation of the Reorganization)

  $ 616     $ 975     $ 1,270     $ 2,242  

Class C Shares

       

WRA Government Securities Fund

  $ 191     $ 605     $ 1,046     $ 2,269  

Ivy Government Securities Fund

  $ 191     $ 598     $ 1,039     $ 2,263  

Ivy Government Securities Fund (pro forma, assuming consummation of the Reorganization)

  $ 191     $ 598     $ 1,039     $ 2,263  

Class Y Shares/Class I Shares

       

WRA Government Securities Fund

  $ 74     $ 235     $ 410     $ 917  

Ivy Government Securities Fund

  $ 74     $ 232     $ 407     $ 915  

Ivy Government Securities Fund (pro forma, assuming consummation of the Reorganization)

  $ 74     $ 232     $ 407     $ 915  

 

45


Table of Contents

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

 

    1 Year     3 Years     5 Years     10 Years  

Class A Shares

       

WRA Government Securities Fund

  $ 523     $ 744     $ 984     $ 1,669  

Ivy Government Securities Fund

  $ 523     $ 737     $ 977     $ 1,663  

Ivy Government Securities Fund (pro forma, assuming consummation of the Reorganization)

  $ 523     $ 737     $ 977     $ 1,663  

Class B Shares

       

WRA Government Securities Fund

  $ 216     $ 684     $ 1,177     $ 2,249  

Ivy Government Securities Fund

  $ 216     $ 675     $ 1,170     $ 2,242  

Ivy Government Securities Fund (pro forma, assuming consummation of the Reorganization)

  $ 216     $ 675     $ 1,170     $ 2,242  

Class C Shares

       

WRA Government Securities Fund

  $ 191     $ 605     $ 1,046     $ 2,269  

Ivy Government Securities Fund

  $ 191     $ 598     $ 1,039     $ 2,263  

Ivy Government Securities Fund (pro forma, assuming consummation of the Reorganization)

  $ 191     $ 598     $ 1,039     $ 2,263  

Class Y Shares/Class I Shares

       

WRA Government Securities Fund

  $ 74     $ 235     $ 410     $ 917  

Ivy Government Securities Fund

  $ 74     $ 232     $ 407     $ 915  

Ivy Government Securities Fund (pro forma, assuming consummation of the Reorganization)

  $ 74     $ 232     $ 407     $ 915  

 

46


Table of Contents

WRA Municipal Bond Fund into Ivy Municipal Bond Fund

The Annual Fund Operating Expenses shown in the table below are based on expenses for the twelve-month period ended March 31, 2017, for the WRA Municipal Bond Fund and the Ivy Municipal Bond Fund. Also shown are the Annual Fund Operating Expenses projected for the Ivy Municipal Bond Fund on a pro forma basis after giving effect to the proposed Reorganization, based on combined net assets as if the transaction had occurred on April 1, 2016 and had a year of combined operations.

 

    WRA Municipal Bond Fund     Ivy Municipal Bond Fund     Ivy Municipal Bond Fund after
Reorganization with the WRA
Municipal Bond Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Shareholder Fees (fees paid directly from your investment)

                       

Maximum Sales Charge (Load) imposed on purchases (as a % of offering price)

    4.25     None       None       None       4.25     None       None       None       4.25     None       None       None  

Maximum Deferred Sales Charge1 (Load) (as a % of lesser of amount invested or redemption value)

    1.00     5.00     1.00     None       1.00     5.00     1.00     None       1.00     5.00     1.00     None  

Maximum Account Fee

  $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None     $ 20 2      None  

 

47


Table of Contents
    WRA Municipal Bond Fund     Ivy Municipal Bond Fund     Ivy Municipal Bond Fund after
Reorganization with the WRA
Municipal Bond Fund

(pro forma combined)
 
    (Target Fund)     (Acquiring Fund)    
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class Y
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
    Class A
Shares
    Class B
Shares
    Class C
Shares
    Class I
Shares
 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

                       

Management Fee

    0.52     0.52     0.52     0.52     0.52     0.52     0.52     0.52     0.51