The Ivy Funds ranked among the fastest growing mutual fund families in 2006, according to a recent study released by Financial Research Corporation (FRC). The Ivy Funds, with a 68 percent increase in assets under management in 2006, ranked fourth in terms of asset growth over the year among all firms with assets of $5 billion or greater. The 68 percent increase well outpaces the average growth rate during the period of 17 percent for firms of similar size, according to FRC.
“We’re gratified by our progress to date in building the Ivy Funds,” said Thomas W. Butch, president and CEO of Ivy Funds Distributor, Inc. “The funds’ growth is an important reflection of the job we are doing on behalf of investors. We’ll keep working hard to earn their ongoing support.”
During 2006, the Ivy Funds saw $3.0 billion in inflows, or sales in excess of redemptions. Asset growth has been strong since the Ivy Funds were relaunched in 2003, with total assets reaching $12.4 billion at year-end 2006.
The Ivy Funds, which are sold both through wholesaling channels and through Waddell & Reed’s network of affiliated advisors, cover all major asset categories, including domestic, global and international equities; international and domestic balanced funds; domestic and international fixed income funds; specialty funds and a money market fund. Ivy Funds recently announced a filing with the Securities and Exchange Commission (SEC) for two new fund share classes, designed to provide more choice and flexibility to two key client groups: those who invest in 529 education savings plans and those investing in large employer-sponsored retirement plans. The Ivy Funds E-share class will be offered inside of select 529 educations savings plans and will provide investors saving for higher education and participating in those 529 savings plans with direct access to the Ivy Funds. The E-shares will be offered for all Ivy Funds, with the exception of the Ivy Municipal Bond Fund.
Additionally, an I-share class will be offered for use in a range of standard employer-sponsored retirement plans offered by larger companies. The I-shares carry no sales charges or 12b-1 fees and will be offered for all Ivy Funds, with the exception of the Ivy Money Market Fund. Ivy Funds previously introduced R-shares in selected funds, designed for smaller or mid-sized companies that offer employer-sponsored retirement plans.
Mutual fund assets overall grew 17 percent during 2006, according to The Wall Street Journal (1/31/07). FRC, a division of Bisys, is a financial services consulting firm based in Boston, specializing in competitive intelligence and analytical services. For a copy of the “Fastest Growing Mutual Fund Complexes – 2006” report, visit www.frcnet.com/ .
The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Funds Distributor, Inc. Please remember that, as with any mutual fund, investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.
Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for any of the Ivy Funds, call your financial advisor or visit www.ivyfunds.com/ . Please read the prospectus carefully before investing.
With respect to 529 plans, investors should consider the investment objectives, risks, charges and expenses associated with 529 plans carefully before investing. More information about 529 plans is available in the issuer’s official statement, which should be read carefully before investing.
The information in this press release relating to the new E-share and I- share classes within the Ivy Funds is not complete and may be changed. We may not sell the new share classes until the amended registration statement filed with the Securities and Exchange Commission is effective. This press release is not an offer to sell these new share classes and is not soliciting an offer to buy these new share classes in any state where the offer or sale is not permitted.
Website: www.ivyfunds.com/
Website: www.frcnet.com
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