N-Q 1 ifi_nqmainpart-123109.htm MAIN PART
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
 

FORM N-Q
 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 

Investment Company Act file number: 811-6569
 

Ivy Funds, Inc.

(Exact name of registrant as specified in charter)
 
 

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)
 
 

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)
 

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

Date of fiscal year end: March 31
 

Date of reporting period: December 31, 2009
 
 
 

ITEM 1. SCHEDULE OF INVESTMENTS.

 

SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



COMMON STOCKS
Shares
Value
Apparel Retail - 0.20%  
 
 
Belle International Holdings Limited (A)
 
34,745
 
$
40,251
 
 
 
 
 
 
Automobile Manufacturers - 3.22%  
 
 
Hyundai Motor Company (A)(B)
 
6,230
 
 
644,846
 
 
 
 
 
 
Biotechnology - 0.49%  
 
 
Vertex Pharmaceuticals Incorporated (B)
 
2,297
 
 
98,413
 
 
 
 
 
 
Casinos & Gaming - 6.20%  
 
 
Sands China Ltd. (A)(B)(C)
362,528
 
 
442,325
Sands China Ltd. (A)(B)
 
29,914
 
 
36,498
Wynn Macau, Limited (A)(B)
 
74,941
 
 
92,306
Wynn Macau, Limited (A)(B)(C)
 
30,756
 
 
37,883
Wynn Resorts, Limited (B)(E)
 
10,845
 
 
631,492
 
 
 
 
 
1,240,504
Coal & Consumable Fuels - 1.22%  
 
 
China Shenhua Energy Company Limited, H Shares (A)
 
50,169
 
 
243,533
 
 
 
 
 
 
Communications Equipment - 3.05%  
 
 
QUALCOMM Incorporated
 
13,186
 
 
610,003
 
 
 
 
 
 
Computer Hardware - 2.66%  
 
 
Acer Incorporated (A)
 
7,530
 
 
22,596
Apple Inc. (B)
 
2,037
 
 
429,500
Lenovo Group Limited (A)
130,114
 
 
80,635
 
 
 
 
 
532,731
Construction & Engineering - 1.86%  
 
 
China Communications Construction Company Limited,
      H Shares (A)
 
38,318
 
 
36,409
Larsen & Toubro Limited (A)
 
9,320
 
 
335,551
 
 
 
 
 
371,960
Construction & Farm Machinery & Heavy Trucks - 1.22%  
 
 
Komatsu Ltd. (A)
 
11,621
 
 
243,278
 
 
 
 
 
 
Construction Materials - 0.20%  
 
 
Holcim Ltd, Registered Shares (A)(B)
 
270
 
 
20,960
Lafarge (A)
 
238
 
 
19,592
 
 
 
 
 
40,552
Data Processing & Outsourced Services - 3.04%  
 
 
Redecard S.A. (A)
 
11,935
 
 
198,797
Visa Inc., Class A
 
4,687
 
 
409,899
 
 
 
 
 
608,696
Distributors - 1.05%  
 
 
Li & Fung Limited (A)
 
50,884
 
 
210,378
 
 
 
 
 
 
Diversified Banks - 10.68%  
 
 
Banco Santander (Brasil) S.A., Units (A)(C)
 
15,596
 
 
214,103
HDFC Bank Limited (A)
 
4,439
 
 
161,763
ICICI Bank Limited (A)
 
12,078
 
 
226,335
Industrial and Commercial Bank of China (Asia) Limited (A)
1,107,117
 
 
911,782
Standard Chartered PLC (A)
 
20,358
 
 
513,947
Standard Chartered PLC (A)(C)
 
4,329
 
 
109,297
 
 
 
 
 
2,137,227
Diversified Metals & Mining - 3.85%  
 
 
Companhia Vale de Rio Doce, ADR
 
5,002
 
 
145,194
Southern Copper Corporation
 
7,660
 
 
252,103
Xstrata plc (A)
 
20,802
 
 
371,025
 
 
 
 
 
768,322
Education Services - 0.51%  
 
 
New Oriental Education & Technology Group Inc., ADR (B)
1,341
 
 
101,407
 
 
 
 
 
 
Fertilizers & Agricultural Chemicals - 1.34%  
 
 
Monsanto Company
 
3,290
 
 
268,989
 
 
 
 
 
 
Heavy Electrical Equipment - 0.81%  
 
 
 
ALSTOM (A)
 
2,322
 
 
162,423
 
 
 
 
 
 
Hotels, Resorts & Cruise Lines - 1.47%  
 
 
Ctrip.com International, Ltd. (B)
 
1,282
 
 
92,156
Starwood Hotels & Resorts Worldwide, Inc.
 
5,509
 
 
201,457
 
 
 
 
 
293,613
Household Products - 0.61%  
 
 
Reckitt Benckiser Group plc (A)
 
2,237
 
 
121,083
 
 
 
 
 
 
Integrated Oil & Gas - 0.96%  
 
 
China Petroleum & Chemical Corporation, H Shares (A)
218,322
 
 
192,351
 
 
 
 
 
 
IT Consulting & Other Services - 1.14%  
 
 
Accenture plc, Class A
 
5,490
 
 
227,835
 
 
 
 
 
 
Life & Health Insurance - 4.69%  
 
 
China Life Insurance Company Limited, H Shares (A)
191,564
 
 
937,376
 
 
 
 
 
 
Mortgage REITs - 1.53%  
 
 
Annaly Capital Management, Inc.
 
17,647
 
 
306,171
 
 
 
 
 
 
Oil & Gas Drilling - 1.00%  
 
 
SeaDrill Limited (A)
 
7,840
 
 
199,477
 
 
 
 
 
 
Oil & Gas Equipment & Services - 3.54%  
 
 
Halliburton Company
 
11,862
 
 
356,919
Schlumberger Limited
 
3,753
 
 
244,309
Weatherford International Ltd. (B)
 
5,939
 
 
106,371
 
 
 
 
 
707,599
Oil & Gas Exploration & Production - 1.63%  
 
 
CNOOC Limited (A)
209,795
 
 
326,849
 
 
 
 
 
 
Packaged Foods & Meats - 0.36%  
 
 
BRF - Brasil Foods S.A. (A)(C)
 
2,796
 
 
72,863
 
 
 
 
 
 
Personal Products - 0.76%  
 
 
Hengan International Group Company Limited (A)
 
20,405
 
 
151,083
 
 
 
 
 
 
Real Estate Development - 0.88%  
 
 
 
China Overseas Land & Investment Limited (A)
 
56,727
 
 
118,859
 
China Resources Land Limited (A)
 
25,288
 
 
56,922
 
 
 
 
 
175,781
Real Estate Operating Companies - 0.75%  
 
 
Renhe Commercial Holdings Company Limited (A)(C)
665,978
 
 
150,643
 
 
 
 
 
 
Semiconductors - 10.18%  
 
 
MediaTek Incorporation (A)
 
21,946
 
 
381,305
PMC-Sierra, Inc. (B)(E)
 
19,167
 
 
165,982
Samsung Electronics Co., Ltd. (A)
 
725
 
 
497,429
Taiwan Semiconductor Manufacturing Company Ltd. (A)
491,681
 
 
990,970
 
 
 
 
 
2,035,686
Specialized Finance - 1.62%  
 
 
Hong Kong Exchanges and Clearing Limited (A)
 
18,162
 
 
323,147
 
 
 
 
 
 
Steel - 1.61%  
 
 
ARCELORMITTAL (A)
 
7,030
 
 
321,324
 
 
 
 
 
 
Thrifts & Mortgage Finance - 0.79%  
 
 
HOUSING DEVELOPMENT FINANCE
      CORPORATION LIMITED (A)
 
2,774
 
 
158,711
 
 
 
 
 
 
Tobacco - 1.04%  
 
 
Philip Morris International Inc.
 
4,341
 
 
209,188
 
 
 
 
 
 
Trucking - 1.23%  
 
 
A.P. Moller-Maersk A/S (A)(C)
 
16
 
 
113,117
A.P. Moller-Maersk A/S (A)
 
19
 
 
133,492
 
 
 
 
 
246,609
Wireless Telecommunication Service - 0.87%  
 
 
MTN Group Limited (A)
 
10,887
 
 
173,286
 
 
 
 
 
 
TOTAL COMMON STOCKS - 78.26%
$
15,654,188
(Cost: $12,733,352)
 
 
 
 
 

INVESTMENT FUNDS - 0.03%
Multiple Industry  
 
 
Vietnam Azalea Fund Limited (B)(F)(G)
 
1,100
 
$
5,104
(Cost: $7,268)
 
 
 
 
 
 
 
 
 
 
CORPORATE DEBT SECURITIES
Principal
Banking - 0.00%
 
 
 
 
 
Banco BMG S.A.,
 
 
 
 
 
      8.750%, 7-1-10 (C)
$
667
 
 
678
 
 
 
 
 
 
Building Products - 0.00%
 
 
 
 
 
Desarrolladora Homex, S.A. de C.V.,
 
 
 
 
 
      7.500%, 9-28-15
 
470
 
 
447
 
 
 
 
 
 
Consumer Products / Tobacco - 0.00%
 
 
 
 
 
Central European Distribution Corporation,
 
 
 
 
 
      8.000%, 7-25-12 (D)(H)
EUR320
 
 
477
 
 
 
 
 
 
Finance Companies - 0.04%
 
 
 
 
 
C5 Capital (SPV) Limited,
 
 
 
 
 
      6.196%, 12-31-49 (C)(I)
$
10,750
 
 
7,360
Toyota Motor Credit Corporation,
 
 
 
 
 
      1.320%, 1-18-15 (I)
 
325
 
 
323
 
 
 
 
 
7,683
Forest Products - 0.03%
 
 
 
 
 
Sino-Forest Corporation,
 
 
 
 
 
      10.250%, 7-28-14 (C)
 
4,700
 
 
5,123
 
 
 
 
 
 
Metals / Mining - 0.02%
 
 
 
 
 
Vedanta Resources plc:
 
 
 
 
 
      6.625%, 2-22-10
 
3,500
 
 
3,509
      6.625%, 2-22-10 (C)
 
550
 
 
551
 
 
 
 
 
4,060
Utilities - 0.05%
 
 
 
 
 
CESP - Companhia Energetica de Sao Paulo,
 
 
 
 
 
      9.750%, 1-15-15 (D)(H)
BRL13,900
 
 
9,353
 
 
 
 
 
 
TOTAL CORPORATE DEBT SECURITIES - 0.14%  
$
27,821
(Cost: $27,954)
 
 
 
 
 

UNITED STATES GOVERNMENT AGENCY
      OBLIGATIONS - 0.07%
Mortgage-Backed Obligations  
 
 
 
Federal Home Loan Mortgage Corporation Agency
      REMIC/CMO (Interest Only): (J)
 
 
 
 
 
 
      4.500%, 8-15-17
$
2,240
 
 
60
 
      5.500%, 9-15-17
 
2,698
 
 
250
 
      5.000%, 11-15-17
 
1,312
 
 
113
 
      5.000%, 5-15-18
 
3,035
 
 
389
 
      5.000%, 4-15-19
 
235
 
 
23
 
      5.000%, 4-15-19
 
116
 
 
11
 
      5.000%, 11-15-22
 
290
 
 
19
 
      5.500%, 3-15-23
 
2,195
 
 
313
 
      5.000%, 5-15-23
 
207
 
 
20
 
      5.000%, 6-15-23
 
2,079
 
 
204
 
      5.000%, 6-15-23
 
1,662
 
 
156
 
      5.000%, 8-15-23
 
161
 
 
17
 
      5.000%, 9-15-24
 
23
 
 
––
*
      5.500%, 9-15-24
 
3
 
 
––
*
      5.500%, 4-15-25
 
35
 
 
2
 
      5.500%, 4-15-25
 
28
 
 
––
*
      5.000%, 9-15-25
 
47
 
 
––
*
      5.500%, 10-15-25
 
2,697
 
 
434
 
      5.000%, 4-15-26
 
510
 
 
8
 
      5.000%, 10-15-28
 
990
 
 
63
 
      5.500%, 2-15-30
 
111
 
 
6
 
      5.000%, 8-15-30
 
145
 
 
7
 
      5.000%, 10-15-30
 
1,250
 
 
143
 
      5.500%, 3-15-31
 
192
 
 
13
 
      5.500%, 10-15-32
 
2,721
 
 
258
 
      5.500%, 1-15-33
 
1,743
 
 
276
 
      5.500%, 5-15-33
 
2,050
 
 
300
 
      5.000%, 7-15-33
 
1,675
 
 
218
 
      6.000%, 11-15-35
 
2,009
 
 
325
 
Federal National Mortgage Association Agency
      REMIC/CMO (Interest Only): (J)
 
 
 
 
 
 
      5.500%, 11-25-17
 
22
 
 
––
*
      5.000%, 5-25-22
 
120
 
 
11
 
      5.000%, 7-25-23
 
3,361
 
 
438
 
      5.000%, 8-25-23
 
1,006
 
 
103
 
      5.000%, 11-25-23
 
1,729
 
 
180
 
      4.500%, 4-25-30
 
1,696
 
 
165
 
      5.000%, 9-25-30
 
1,265
 
 
101
 
      5.000%, 3-25-31
 
3,544
 
 
337
 
      5.000%, 8-15-31
 
2,701
 
 
371
 
      5.500%, 6-25-33
 
2,582
 
 
388
 
      5.500%, 8-25-33
 
4,623
 
 
663
 
      5.500%, 12-25-33
 
2,517
 
 
315
 
      5.500%, 4-25-34
 
4,900
 
 
749
 
      5.500%, 8-25-35
 
3,510
 
 
544
 
      5.500%, 11-25-36
 
9,235
 
 
1,342
 
Government National Mortgage Association Agency
      REMIC/CMO (Interest Only): (J)
 
 
 
 
 
 
      5.000%, 1-20-30
 
370
 
 
21
 
      5.000%, 6-20-31
 
438
 
 
44
 
      5.500%, 3-20-32
 
2,008
 
 
250
 
      5.000%, 10-20-32
 
1,685
 
 
335
 
      7.000%, 5-20-33
 
4,575
 
 
821
 
      5.500%, 7-16-33
 
2,216
 
 
410
 
      5.000%, 7-20-33
 
96
 
 
9
 
      5.500%, 11-20-33
 
530
 
 
48
 
      5.500%, 6-20-35
 
4,729
 
 
719
 
      5.500%, 7-20-35
 
1,999
 
 
307
 
      5.500%, 7-20-35
 
751
 
 
81
      5.500%, 10-16-35
 
4,581
 
 
796
(Cost: $19,363)
 
 
 
$
13,176

 
 
 
 
 
BULLION - 15.47%
Troy
Ounces
Gold
 
2,826
 
$
3,094,356
(Cost: $2,528,143)
 
 
 
 
 

SHORT-TERM SECURITIES
Principal
Commercial Paper (K) - 3.78%  
 
 
Abbott Laboratories,
 
 
 
 
 
      0.010%, 1-4-10
$
2,210
 
 
2,210
American Honda Finance Corp.,
 
 
 
 
 
      0.140%, 1-12-10
 
20,000
 
 
19,999
Citigroup Funding Inc.,
 
 
 
 
 
 
      0.220%, 1-20-10
 
15,000
 
 
14,998
 
COFCO Capital Corp. (Rabobank Nederland),
 
 
 
 
 
 
      0.300%, 1-7-10
 
11,000
 
 
10,999
 
CVS Caremark Corporation,
 
 
 
 
 
 
      0.230%, 1-13-10
 
8,000
 
 
7,999
 
Danaher Corporation,
 
 
 
 
 
 
      0.110%, 1-4-10
 
18,800
 
 
18,800
 
GlaxoSmithKline Finance plc:
 
 
 
 
 
 
      0.110%, 1-20-10
 
55,495
 
 
55,491
 
      0.120%, 1-27-10
 
25,000
 
 
24,998
 
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.):
 
 
 
 
 
 
      0.230%, 1-14-10
 
10,000
 
 
9,999
 
      0.290%, 1-20-10
 
8,000
 
 
7,999
 
      0.270%, 1-21-10
 
15,700
 
 
15,698
 
      0.310%, 2-10-10
 
14,000
 
 
13,995
 
      0.350%, 2-10-10
 
10,000
 
 
9,996
 
      0.230%, 3-1-10
 
6,137
 
 
6,135
 
Hewlett-Packard Company,
 
 
 
 
 
 
      0.110%, 1-11-10
 
50,000
 
 
49,998
 
John Deere Credit Limited (John Deere Capital
      Corporation),
 
 
 
 
 
 
      0.110%, 1-21-10
 
13,000
 
 
12,999
 
Kitty Hawk Funding Corp.:
 
 
 
 
 
 
      0.140%, 1-6-10
 
45,700
 
 
45,699
 
      0.160%, 1-19-10
 
11,000
 
 
10,999
 
      0.160%, 1-27-10
 
10,000
 
 
9,999
 
Nestle Finance International Ltd.,
 
 
 
 
 
 
      0.110%, 1-19-10
 
25,000
 
 
24,999
 
Nokia Corp.,
 
 
 
 
 
 
      0.150%, 1-7-10
 
10,000
 
 
10,000
 
Procter & Gamble International Funding S.C.A.
      (Procter & Gamble Company (The)),
 
 
 
 
 
 
      0.100%, 2-1-10
 
30,792
 
 
30,789
 
Societe Generale N.A. Inc.:
 
 
 
 
 
 
      0.010%, 1-4-10
104,011
 
 
104,011
 
      0.160%, 1-19-10
 
50,000
 
 
49,996
 
      0.170%, 1-28-10
 
25,000
 
 
24,997
 
Straight-A Funding, LLC (Federal Financing Bank):
 
 
 
 
 
 
      0.140%, 1-11-10
 
50,000
 
 
49,998
 
      0.130%, 1-19-10
 
10,000
 
 
9,999
 
      0.130%, 1-22-10
 
12,000
 
 
11,999
 
Volkswagen of America Inc.:
 
 
 
 
 
 
      0.260%, 1-11-10
 
8,216
 
 
8,215
 
      0.270%, 1-15-10
 
51,640
 
 
51,634
 
Walt Disney Company (The),
 
 
 
 
 
      0.050%, 1-12-10
 
30,000
 
 
30,000
 
 
 
 
 
755,647

Commercial Paper (backed by irrevocable bank letter
      of credit) (K) - 0.09% 		 
 
 
River Fuel Funding Company #3, Inc.
      (Bank of New York (The)),
 
 
 
 
 
      0.220%, 1-29-10
 
18,178
 
 
18,175
 
 
 
 
 
 
Master Note - 0.05%  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (L)
 
10,782
 
 
10,782
 
 
 
 
 
 
Municipal Obligations - 0.60%  
 
 
 
California Health Facilities Financing Authority,
      Variable Rate Hospital Revenue Bonds
      (Adventist Health System/West), 1998 Series B
      (Bank of America, N.A.),
 
 
 
 
 
 
      0.200%, 1-1-10 (L)
 
7,700
 
 
7,700
 
California Pollution Control Financing Authority, Pollution
      Control Refunding Revenue Bonds (Pacific Gas and
      Electric Company), Series C (JPMorgan Chase Bank),
 
 
 
 
 
 
      0.200%, 1-4-10 (L)
 
––
*
 
––
*
City of Los Angeles, Wastewater System Subordinate
      Revenue Bonds, Variable Rate Refunding,
      Series 2008-G (Bank of America, N.A.),
 
 
 
 
 
 
      0.190%, 1-4-10 (L)
 
10,000
 
 
10,000
 
City of Whiting, Indiana, Environmental Facilities Revenue
      Bonds (BP Products North America Inc. Project),
      Series 2002B (BP p.l.c.),
 
 
 
 
 
 
      0.230%, 1-4-10 (L)
 
7,000
 
 
7,000
 
City of Whiting, Indiana, Environmental Facilities Revenue
      Bonds (BP Products North America Inc. Project),
      Series 2005 (BP p.l.c.),
 
 
 
 
 
 
      0.230%, 1-4-10 (L)
 
2,200
 
 
2,200
 
City of Whiting, Indiana, Environmental Facilities Revenue
      Refunding Bonds (BP Products North America Inc.
      Project), Series 2002C (BP p.l.c.),
 
 
 
 
 
 
      0.230%, 1-4-10 (L)
 
1,700
 
 
1,700
 
City of Whiting, Indiana, Industrial Sewage and Solid
      Waste Disposal Revenue Refunding Bonds (Amoco Oil
      Company Project), Series 1996 (Amoco Corporation
      and Amoco Company),
 
 
 
 
 
      0.230%, 1-4-10 (L)
 
7,300
 
 
7,300
 
Colorado Health Facilities Authority, Variable Rate Revenue
      Bonds (Exempla, Inc.), Series 2009A (U.S. Bank N.A.),
 
 
 
 
 
      0.200%, 1-6-10 (L)
 
5,465
 
 
5,465
 
Exempla General Improvement District, City of Lafayette,
      Colorado, Special Improvement District No. 02-01,
      Special Assessment Revenue Refunding and Improvement
      Bonds, Series 2002 (Wells Fargo Bank, N.A.),
 
 
 
 
 
      0.250%, 1-1-10 (L)
 
475
 
 
475
 
Florida Municipal Power Agency, All-Requirements Power
      Supply Project Variable Rate Demand Refundings
      Revenue Bonds, Series 2008C (Bank of America, N.A.),
 
 
 
 
 
      0.250%, 1-4-10 (L)
 
5,125
 
 
5,125
 
Industrial Development Corporation of the Port of
      Bellingham (Washington), Environmental Facilities
      Industrial Revenue Bonds (BP West Coast Products
      LLC Project), Series 2003 (BP p.l.c.),
 
 
 
 
 
 
      0.230%, 1-4-10 (L)
 
1,225
 
 
1,225
 
New Jersey Health Care Facilities Financing Authority,
      Revenue Bonds, AHS Hospital Corp. Issue,
      Series 2008C (JPMorgan Chase & Co.),
 
 
 
 
 
 
      0.180%, 1-4-10 (L)
 
9,500
 
 
9,500
 
Norfolk Redevelopment and Housing Authority, Variable
      Rate Demand Revenue and Refunding Bonds
      (Old Dominion University Real Estate Foundation
      45th Street Parking Garage, LLC University Village
      Parking Facility Project), Series 2008
      (Bank of America, N.A.),
 
 
 
 
 
 
      0.260%, 1-1-10 (L)
 
2,770
 
 
2,770
 
The City of New York, General Obligation Bonds,
      Fiscal 2006 Series E (Bank of America, N.A.),
 
 
 
 
 
 
      0.190%, 1-4-10 (L)
 
12,225
 
 
12,225
 
The Industrial Development Authority of the City of Phoenix,
      Arizona, Tax-Exempt Adjustable Mode, Multifamily
      Housing Revenue Refunding Bonds (Paradise Lakes
      Apartment Project), Series 2007A (Wachovia Bank,
      National Association),
 
 
 
 
 
      0.200%, 1-4-10 (L)
 
19,925
 
 
19,925
 
The Public Building Authority of the County of Montgomery,
      Tennessee, Adjustable Rate Pooled Financing, Revenue
      Bonds, Series 2008 (Tennessee County Loan Pool)
      (Bank of America, N.A.),
 
 
 
 
 
      0.260%, 1-1-10 (L)
 
4,370
 
 
4,370
 
The Town of Castle Rock, Colorado, Certificates of
      Participation, Series 2008 (Wells Fargo Bank, N.A.),
 
 
 
 
 
 
      0.250%, 1-4-10 (L)
 
13,355
 
 
13,355
 
West Side Calhoun County Navigation District (Texas),
      Sewage and Solid Waste Disposal Revenue Bonds
      (BP Chemicals Inc. Project) Series 1996 (British
      Petroleum Company p.l.c. (The)),
 
 
 
 
 
      0.230%, 1-4-10 (L)
 
8,350
 
 
8,350
 
 
 
 
 
118,685
Notes - 0.44%  
 
 
American Honda Finance Corp.:
 
 
 
 
 
      0.631%, 1-29-10 (I)
 
16,500
 
 
16,487
      1.773%, 2-16-10 (L)
 
25,000
 
 
25,091
Bank of America, N.A.,
 
 
 
 
 
      0.657%, 1-22-10 (L)
 
1,000
 
 
1,000
BellSouth Corporation (AT&T Inc.),
 
 
 
 
 
      4.950%, 4-26-10 (I)
 
31,000
 
 
31,232
Caterpillar Financial Services Corporation,
 
 
 
 
 
      4.150%, 1-15-10
 
15,045
 
 
15,056
 
 
 
 
 
88,866
United States Government Agency Obligations - 0.26%  
 
 
Overseas Private Investment Corporation:
 
 
 
 
 
      0.160%, 2-15-10 (L)
 
20,000
 
 
20,000
      0.160%, 3-15-10 (L)
 
10,000
 
 
10,000
      0.160%, 1-15-10 (L)
 
5,000
 
 
5,000
      0.160%, 2-15-10 (L)
 
3,465
 
 
3,465
      0.160%, 3-22-10 (L)
 
3,382
 
 
3,382
      0.200%, 5-15-10 (L)
 
10,000
 
 
10,000
 
 
 
 
 
51,847

TOTAL SHORT-TERM SECURITIES - 5.22%
 
 
 
$
1,044,002
(Cost: $1,044,002)
 
 
 
 
 

TOTAL INVESTMENT SECURITIES - 99.19%
 
 
 
$
19,838,647
(Cost: $16,360,082)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.81%
 
 
161,410
 

NET ASSETS - 100.00%
 
 
 
$
20,000,057
 
 
 
Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
5,952,164
$
9,702,024
$
––
      Investment Funds
––
––
5,104
      Corporate Debt Securities
––
27,821
––
      United States Government Agency Obligations
––
13,176
––
      Bullion
3,094,356
––
––
      Short-Term Securities
––
1,044,002
––
           Total Investments in Securities
$
9,046,520
$
10,787,023
$
5,104
Forward Foreign Currency Contracts
$
––
$
93,234
$
––

Liabilities
Forward Foreign Currency Contracts
$
––
$
26,883
$
––


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

 
Investment
Funds
Beginning Balance 4-1-09  
$
2,838
 
Net realized gain (loss)  
 
––
Net unrealized appreciation (depreciation)  
 
2,266
 
Net purchases (sales)  
 
––
 
Transfers in and/or (out) of Level 3 during the period  
 
––
Ending Balance 12-31-09  
$
5,104
 
Net change in unrealized appreciation (depreciation)
      for all Level 3 investments still held as of 12-31-09		  
$
2,266
 


The following forward foreign currency contracts were outstanding at December 31, 2009:
 
 
 
 
 
 
 
Type Currency Counterparty
Principal Amount
of Contract
(Denominated in
Indicated Currency)
Settlement Date
Unrealized
Appreciation
Unrealized
Depreciation
Buy Australian
   Dollar		 Bank of America
   NT & SA
420,300
1-21-10
$
44,663
$
––
Sell British Pound Deutsche Bank AG
676,300
3-18-10
14,624
––
Buy Chinese Yuan
   Renminbi		 Deutsche Bank AG
3,780,960
9-15-10
––
5,259
Buy Chinese Yuan
   Renminbi		 Citibank, N.A.
1,036,201
10-25-10
––
3,794
Buy Euro Deutsche Bank AG
109,500
8-25-10
––
139
Sell Euro Citibank, N.A.
312,200
3-18-10
6,345
––
Sell Euro Deutsche Bank AG
88,900
5-27-10
5,063
––
Sell Euro Deutsche Bank AG
158,500
5-27-10
––
427
Sell Japanese Yen Bank of America
   NT & SA
31,048,612
1-21-10
––
1,158
Sell Japanese Yen Deutsche Bank AG
18,483,647
12-13-10
11,367
––
Sell Japanese Yen Citibank, N.A.
18,833,000
12-20-10
7,865
––
Buy Norwegian
   Krone		 Bank of America
   NT & SA
589,629
10-20-10
1,448
––
Buy Norwegian
   Krone		 Citibank, N.A.
475,809
10-20-10
––
2,148
Sell South African
   Rand		 Deutsche Bank AG
1,222,100
3-18-10
––
1,056
Buy Swedish Krona Deutsche Bank AG
2,516,281
5-27-10
––
7,181
Buy Swedish Krona Deutsche Bank AG
300,675
12-13-10
795
––
Buy Swedish Krona Deutsche Bank AG
1,202,700
12-13-10
––
1,198
Sell Swiss Franc Deutsche Bank AG
165,119
8-25-10
––
3,029
Sell Swiss Franc Citibank, N.A.
84,600
10-20-10
1,064
––
Sell Swiss Franc Bank of America
   NT & SA
103,500
10-20-10
––
1,494
     
 
 
$
93,234
$
26,883
*Not shown due to rounding.

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

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

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At December 31, 2009, the total value of these securities amounted to $1,153,943 or 5.77% of net assets.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors. At December 31, 2009, the total value of these securities amounted to $9,830 or 0.05% of net assets.

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

(F)Illiquid restricted security.

At December 31, 2009, the following restricted security was owned:

Security
Acquisition Date(s)
Shares
Cost
Market Value
Vietnam Azalea Fund Limited
6-14-07 to 1-28-09
1,100
$7,268
$5,104
         
The total value of this security represented approximately 0.03% of net assets at December 31, 2009.
 
(G)Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. The Fund and other mutual funds managed by its investment manager, Ivy Investment Management Company, or other related parties together own 30% of the outstanding shares of this security at December 31, 2009.

(H)Principal amounts are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real and EUR - Euro).

(I)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009.

(J)Amount shown in principal column represents notional amount for computation of interest.

(K)Rate shown is the yield to maturity at December 31, 2009.

(L)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.

Securities with an aggregate market value of $9,702,024, representing 48.51% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Directors.

The following acronyms are used throughout this schedule:
ADR = American Depositary Receipt
CMO = Collateralized Mortgage Obligation
REIT = Real Estate Investment Trust
REMIC = Real Estate Mortgage Investment Conduit












SCHEDULE OF INVESTMENTS
Ivy Capital Appreciation Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



COMMON STOCKS
Shares
Value
Aerospace & Defense - 4.72%  
 
 
Boeing Company (The)
 
40
 
$
2,165
General Dynamics Corporation
 
100
 
 
6,817
Precision Castparts Corp.
 
99
 
 
10,925
Rockwell Collins, Inc.
 
100
 
 
5,536
 
 
 
 
 
25,443
Apparel, Accessories & Luxury Goods - 0.86%  
 
 
Under Armour, Inc., Class A (A)
 
169
 
 
4,614
 
 
 
 
 
 
Asset Management & Custody Banks - 2.39%  
 
 
BlackRock, Inc., Class A
 
20
 
 
4,644
Janus Capital Group Inc.
 
610
 
 
8,205
 
 
 
 
 
12,849
Biotechnology - 3.22%  
 
 
Gilead Sciences, Inc. (A)
 
400
 
 
17,312
 
 
 
 
 
 
Casinos & Gaming - 0.68%  
 
 
Wynn Resorts, Limited (A)
 
63
 
 
3,668
 
 
 
 
 
 
Communications Equipment - 5.20%  
 
 
Cisco Systems, Inc. (A)
 
210
 
 
5,027
QUALCOMM Incorporated
 
300
 
 
13,878
Research In Motion Limited (A)
 
135
 
 
9,118
 
 
 
 
 
28,023
Computer Hardware - 8.20%  
 
 
Apple Inc. (A)(B)
 
115
 
 
24,250
Hewlett-Packard Company
 
385
 
 
19,831
 
 
 
 
 
44,081
Construction & Engineering - 0.23%  
 
 
Fluor Corporation
 
28
 
 
1,252
 
 
 
 
 
 
Consumer Finance - 0.68%  
 
 
American Express Company
 
90
 
 
3,647
 
 
 
 
 
 
Data Processing & Outsourced Services - 3.74%  
 
 
Visa Inc., Class A (B)
 
230
 
 
20,116
 
 
 
 
 
 
Diversified Chemicals - 0.86%  
 
 
 
Dow Chemical Company (The)
 
168
 
 
4,642
 
 
 
 
 
 
Fertilizers & Agricultural Chemicals - 3.35%  
 
 
Monsanto Company (B)
 
220
 
 
17,985
 
 
 
 
 
 
Footwear - 1.10%  
 
 
NIKE, Inc., Class B
 
90
 
 
5,946
 
 
 
 
 
 
General Merchandise Stores - 0.45%  
 
 
Target Corporation
 
50
 
 
2,419
 
 
 
 
 
 
Health Care Equipment - 1.32%  
 
 
Hologic, Inc. (A)
 
490
 
 
7,105
 
 
 
 
 
 
Home Improvement Retail - 1.00%  
 
 
Lowe's Companies, Inc.
 
230
 
 
5,380
 
 
 
 
 
 
Household Products - 1.97%  
 
 
Procter & Gamble Company (The)
 
175
 
 
10,610
 
 
 
 
 
 
Hypermarkets & Super Centers - 3.30%  
 
 
Costco Wholesale Corporation
 
300
 
 
17,751
 
 
 
 
 
 
Industrial Conglomerates - 1.10%  
 
 
Textron Inc.
 
315
 
 
5,925
 
 
 
 
 
 
Integrated Oil & Gas - 0.60%  
 
 
Occidental Petroleum Corporation
 
40
 
 
3,254
 
 
 
 
 
 
Integrated Telecommunication Services - 0.78%  
 
 
AT&T Inc.
 
150
 
 
4,205
 
 
 
 
 
 
Internet Software & Services - 6.10%  
 
 
Google Inc., Class A (A)
 
53
 
 
32,859
 
 
 
 
 
 
Investment Banking & Brokerage - 3.12%  
 
 
 
Charles Schwab Corporation (The)
 
535
 
 
10,068
 
Goldman Sachs Group, Inc. (The) (B)
 
40
 
 
6,753
 
 
 
 
 
16,821
Oil & Gas Drilling - 1.32%  
 
 
Nabors Industries Ltd. (A)
 
40
 
 
876
Transocean Inc. (A)
 
75
 
 
6,210
 
 
 
 
 
7,086
Oil & Gas Equipment & Services - 6.39%  
 
 
Halliburton Company
 
320
 
 
9,629
Schlumberger Limited
 
260
 
 
16,923
Smith International, Inc. (B)
 
290
 
 
7,879
 
 
 
 
 
34,431
Oil & Gas Exploration & Production - 3.16%  
 
 
Noble Energy, Inc.
 
50
 
 
3,561
Ultra Petroleum Corp. (A)
 
120
 
 
5,983
XTO Energy Inc.
 
160
 
 
7,445
 
 
 
 
 
16,989
Other Diversified Financial Services - 1.28%  
 
 
JPMorgan Chase & Co.
 
165
 
 
6,876
 
 
 
 
 
 
Packaged Foods & Meats - 0.78%  
 
 
Ralcorp Holdings, Inc. (A)
 
70
 
 
4,180
 
 
 
 
 
 
Pharmaceuticals - 0.75%  
 
 
Abbott Laboratories
 
75
 
 
4,049
 
 
 
 
 
 
Property & Casualty Insurance - 0.37%  
 
 
ACE Limited
 
40
 
 
2,016
 
 
 
 
 
 
Railroads - 2.26%  
 
 
Union Pacific Corporation (B)
 
190
 
 
12,141
 
 
 
 
 
 
Restaurants - 3.33%  
 
 
McDonald's Corporation
 
220
 
 
13,737
YUM! Brands, Inc.
 
120
 
 
4,196
 
 
 
 
 
17,933
Semiconductors - 1.43%  
 
 
 
Microchip Technology Incorporated
 
265
 
 
7,701
 
 
 
 
 
 
Soft Drinks - 2.49%  
 
 
Coca-Cola Company (The)
 
65
 
 
3,705
Hansen Natural Corporation (A)
 
70
 
 
2,688
PepsiCo, Inc.
 
115
 
 
6,992
 
 
 
 
 
13,385
Specialized Finance - 0.84%  
 
 
CME Group Inc.
 
14
 
 
4,535
 
 
 
 
 
 
Specialty Chemicals - 2.81%  
 
 
Albemarle Corporation
 
175
 
 
6,365
Ecolab Inc.
 
197
 
 
8,784
 
 
 
 
 
15,149
Systems Software - 5.32%  
 
 
Microsoft Corporation (B)
 
940
 
 
28,661
 
 
 
 
 
 
Tobacco - 3.40%  
 
 
Altria Group, Inc.
 
195
 
 
3,828
Lorillard, Inc.
 
100
 
 
8,022
Philip Morris International Inc.
 
135
 
 
6,506
 
 
 
 
 
18,356

TOTAL COMMON STOCKS - 90.90%
$
489,395
(Cost: $444,800)
 
 
 
 
 

SHORT-TERM SECURITIES
Principal
Commercial Paper (C) - 8.99%  
 
 
Citigroup Funding Inc.,
 
 
 
 
 
 
      0.160%, 1-25-10
$
5,000
 
 
4,999
 
CVS Caremark Corporation,
 
 
 
 
 
 
      0.230%, 1-13-10
 
5,000
 
 
5,000
 
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
 
 
 
 
 
 
      0.290%, 1-22-10
 
5,000
 
 
4,999
 
Hewlett-Packard Company,
 
 
 
 
 
 
      0.110%, 1-11-10
 
5,000
 
 
5,000
 
ITT Corporation,
 
 
 
 
 
 
      0.090%, 1-4-10
 
3,240
 
 
3,240
 
River Fuel Trust #1 (Bank of New York (The)),
 
 
 
 
 
 
      0.230%, 1-15-10
 
2,200
 
 
2,200
 
Straight-A Funding, LLC (Federal Financing Bank):
 
 
 
 
 
 
      0.120%, 1-5-10
 
5,000
 
 
5,000
 
      0.120%, 1-5-10
 
4,000
 
 
4,000
 
      0.130%, 1-22-10
 
6,000
 
 
5,999
 
Toyota Motor Credit Corporation,
 
 
 
 
 
 
      0.130%, 2-16-10
 
5,000
 
 
4,999
 
Wisconsin Electric Power Co.,
 
 
 
 
 
 
      0.110%, 1-4-10
 
3,000
 
 
3,000
 
 
 
 
 
48,436
Master Note - 0.54%  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (D)
 
2,893
 
 
2,893
 
 
 
 
 
 
TOTAL SHORT-TERM SECURITIES - 9.53%
$
51,329
(Cost: $51,329)
 
 

TOTAL INVESTMENT SECURITIES - 100.43%
$
540,724
(Cost: $496,129)
 
 
 
 
 
 

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.43%)
 
 
(2,328
)

NET ASSETS - 100.00%
 
 
 
$
538,396
 

 
Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
489,395
$
––
$   ––
      Short-Term Securities
––
51,329
––
           Total Investments in Securities
$
489,395
$
51,329
$   ––
Liabilities
Written Options
$
72
$
––
$   ––



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

(B)Securities serve as cover or collateral for the following written options outstanding at December 31, 2009:

Underlying
Security 		Counterparty
Contracts
Subject
to Call
Expiration
Month
Exercise
Price
Premium
Received
Market
Value
 
Apple Inc.
Goldman, Sachs &
   Company
––*
January 2010
$230.00
$
31
$
(9
)
 
Goldman, Sachs &
   Company
––*
February 2010
250.00
21
(24
)
Goldman Sachs
   Group, Inc.
   (The)
 UBS Securities LLC
––*
January 2010
185.00
5
(1
)
 
Morgan Stanley Smith
   Barney
––*
January 2010
195.00
3
––
*
Monsanto
   Company
 Goldman, Sachs &
   Company
––*
January 2010
90.00
24
(4
)
Union Pacific
   Corporation
 Goldman, Sachs &
   Company
––*
January 2010
75.00
1
––
*
Visa Inc.,
   Class A
 Goldman, Sachs &
   Company
––*
January 2010
90.00
10
(28
)
 
 
 
 
 
$
95
$
(66
)
 
 
 
 
 
 
 
Underlying
Security 		Counterparty
Contracts
Subject
to Put
Expiration
Month
Exercise
Price
Premium
Received
Market
Value
 
Apple Inc.
Goldman, Sachs &
   Company
––*
January 2010
$155.00
6
$
(1
)
 
Goldman, Sachs &
   Company
––*
January 2010
165.00
11
(1
)
Goldman Sachs
   Group, Inc.
   (The)
 Morgan Stanley Smith
   Barney
––*
January 2010
140.00
4
(1
)
Monsanto
   Company
 Goldman, Sachs &
   Company
––*
January 2010
70.00
20
(2
)
Transocean Inc.
Goldman, Sachs &
   Company
––*
January 2010
70.00
6
(1
)
 
 
 
 
 
$
47
$
(6
)
*Not shown due to rounding.

(C)Rate shown is the yield to maturity at December 31, 2009.

(D)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009.











SCHEDULE OF INVESTMENTS
Ivy Core Equity Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



COMMON STOCKS  
Shares
Value
Advertising - 2.18%  
 
 
Omnicom Group Inc.
 
 
108
 
$
4,240
 
 
 
 
 
 
 
Asset Management & Custody Banks - 1.04%  
 
 
Blackstone Group L.P. (The)
 
 
154
 
 
2,015
 
 
 
 
 
 
 
Biotechnology - 2.66%  
 
 
Amgen Inc. (A)
 
 
91
 
 
5,171
 
 
 
 
 
 
 
Brewers - 1.66%  
 
 
Molson Coors Brewing Company, Class B
 
 
72
 
 
3,229
 
 
 
 
 
 
 
Casinos & Gaming - 1.33%  
 
 
Wynn Resorts, Limited (A)
 
 
44
 
 
2,585
 
 
 
 
 
 
 
Communications Equipment - 7.37%  
 
 
Juniper Networks, Inc. (A)
 
 
203
 
 
5,422
QUALCOMM Incorporated
 
 
148
 
 
6,832
Telefonaktiebolaget LM Ericsson, ADR
 
 
222
 
 
2,041
 
 
 
 
 
 
14,295
Computer Hardware - 5.13%  
 
 
Apple Inc. (A)
 
 
9
 
 
1,940
Hewlett-Packard Company
 
 
156
 
 
8,014
 
 
 
 
 
 
9,954
Computer Storage & Peripherals - 1.09%  
 
 
NetApp, Inc. (A)
 
 
62
 
 
2,115
 
 
 
 
 
 
 
Construction & Farm Machinery & Heavy Trucks - 1.29%  
 
 
PACCAR Inc
 
 
69
 
 
2,503
 
 
 
 
 
 
 
Consumer Finance - 3.80%  
 
 
Capital One Financial Corporation
 
 
193
 
 
7,380
 
 
 
 
 
 
 
Data Processing & Outsourced Services - 2.17%  
 
 
Visa Inc., Class A
 
 
48
 
 
4,224
 
 
 
 
 
 
 
Department Stores - 4.68%  
 
 
 
Macy's Inc.
 
 
206
 
 
3,448
 
Nordstrom, Inc.
 
 
150
 
 
5,637
 
 
 
 
 
 
9,085
Diversified Banks - 3.03%  
 
 
Wells Fargo & Company
 
 
218
 
 
5,886
 
 
 
 
 
 
 
Diversified Chemicals - 2.84%  
 
 
Dow Chemical Company (The)
 
 
200
 
 
5,526
 
 
 
 
 
 
 
General Merchandise Stores - 1.24%  
 
 
Target Corporation
 
 
50
 
 
2,414
 
 
 
 
 
 
 
Health Care Equipment - 2.03%  
 
 
Baxter International Inc.
 
 
67
 
 
3,943
 
 
 
 
 
 
 
Hotels, Resorts & Cruise Lines - 1.49%  
 
 
Starwood Hotels & Resorts Worldwide, Inc.
 
 
79
 
 
2,896
 
 
 
 
 
 
 
Hypermarkets & Super Centers - 1.93%  
 
 
Costco Wholesale Corporation
 
 
63
 
 
3,751
 
 
 
 
 
 
 
Industrial Conglomerates - 3.33%  
 
 
Textron Inc.
 
 
344
 
 
6,473
 
 
 
 
 
 
 
Industrial Gases - 1.95%  
 
 
Air Products and Chemicals, Inc.
 
 
23
 
 
1,885
Praxair, Inc.
 
 
24
 
 
1,904
 
 
 
 
 
 
3,789
Industrial Machinery - 2.32%  
 
 
Parker Hannifin Corporation
 
 
84
 
 
4,499
 
 
 
 
 
 
 
Integrated Oil & Gas - 1.58%  
 
 
Suncor Energy Inc.
 
 
87
 
 
3,072
 
 
 
 
 
 
 
Internet Retail - 0.10%  
 
 
 
Amazon.com, Inc. (A)
 
 
1
 
 
188
 
 
 
 
 
 
 
Investment Banking & Brokerage - 4.11%  
 
 
Charles Schwab Corporation (The)
 
 
134
 
 
2,518
Goldman Sachs Group, Inc. (The)
 
 
16
 
 
2,735
Lazard Group LLC
 
 
72
 
 
2,730
 
 
 
 
 
 
7,983
IT Consulting & Other Services - 0.49%  
 
 
Accenture plc, Class A
 
 
23
 
 
955
 
 
 
 
 
 
 
Oil & Gas Equipment & Services - 6.71%  
 
 
Halliburton Company
 
 
201
 
 
6,045
Schlumberger Limited
 
 
71
 
 
4,607
Smith International, Inc.
 
 
88
 
 
2,383
 
 
 
 
 
 
13,035
Oil & Gas Exploration & Production - 2.61%  
 
 
Noble Energy, Inc.
 
 
43
 
 
3,041
Southwestern Energy Company (A)
 
 
42
 
 
2,029
 
 
 
 
 
 
5,070
Other Diversified Financial Services - 6.40%  
 
 
Bank of America Corporation
 
 
423
 
 
6,367
JPMorgan Chase & Co.
 
 
146
 
 
6,075
 
 
 
 
 
 
12,442
Personal Products - 0.90%  
 
 
Estee Lauder Companies Inc. (The), Class A
 
 
36
 
 
1,746
 
 
 
 
 
 
 
Pharmaceuticals - 1.23%  
 
 
Teva Pharmaceutical Industries Limited, ADR
 
 
43
 
 
2,393
 
 
 
 
 
 
 
Railroads - 3.43%  
 
 
Union Pacific Corporation
 
 
105
 
 
6,677
 
 
 
 
 
 
 
Regional Banks - 0.68%  
 
 
Marshall & Ilsley Corporation
 
 
241
 
 
1,314
 
 
 
 
 
 
 
Semiconductor Equipment - 2.68%  
 
 
 
Applied Materials, Inc.
 
 
374
 
 
5,211
 
 
 
 
 
 
 
Semiconductors - 2.77%  
 
 
Microchip Technology Incorporated
 
 
186
 
 
5,391
 
 
 
 
 
 
 
Soft Drinks - 2.94%  
 
 
Coca-Cola Company (The)
 
 
100
 
 
5,718
 
 
 
 
 
 
 
Specialized Finance - 1.35%  
 
 
IntercontinentalExchange, Inc. (A)
 
 
23
 
 
2,628
 
 
 
 
 
 
 
Tobacco - 2.67%  
 
 
Lorillard, Inc.
 
 
19
 
 
1,500
Philip Morris International Inc.
 
 
76
 
 
3,682
 
 
 
 
 
 
5,182

TOTAL COMMON STOCKS - 95.21%
$
184,978
(Cost: $163,756)
 
 
 
 
 
 

SHORT-TERM SECURITIES
Principal
Commercial Paper (B) - 4.29%  
 
 
Bemis Company, Inc.,
 
 
 
 
 
 
0.060%, 1-4-10
 
$
8,335
 
 
8,335
 
 
 
 
 
 
 
Master Note - 0.54%  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
 
0.117%, 1-1-10 (C)
 
 
1,045
 
 
1,045
 
 
 
 
 
 
 
TOTAL SHORT-TERM SECURITIES - 4.83%
$
9,380
(Cost: $9,380)
 
 

TOTAL INVESTMENT SECURITIES - 100.04%
$
194,358
(Cost: $173,136)
 
 
 
 
 
 
 

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.04%)
 
 
(68
)

NET ASSETS - 100.00%
 
 
 
 
$
194,290
 
 
 
Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
184,978
$
––
$   ––
      Short-Term Securities
––
9,380
––
           Total Investments in Securities
$
184,978
$
9,380
$   ––

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

(B)Rate shown is the yield to maturity at December 31, 2009.

(C)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipt











SCHEDULE OF INVESTMENTS
Ivy Energy Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



COMMON STOCKS
Shares
Value
Coal & Consumable Fuels - 3.99%  
 
 
Alpha Natural Resources, Inc. (A)
 
14
 
$
611
Arch Coal, Inc.
 
21
 
 
466
Cameco Corporation
 
14
 
 
446
CONSOL Energy Inc.
 
12
 
 
575
Peabody Energy Corporation
 
22
 
 
976
 
 
 
 
 
3,074
Construction & Engineering - 3.99%  
 
 
Chicago Bridge & Iron Company N.V., NY Shares
 
20
 
 
401
Fluor Corporation
 
37
 
 
1,687
Jacobs Engineering Group Inc. (A)
 
26
 
 
991
 
 
 
 
 
3,079
Construction & Farm Machinery & Heavy Trucks - 1.82%  
 
 
Bucyrus International, Inc., Class A
 
25
 
 
1,404
 
 
 
 
 
 
Diversified Metals & Mining - 1.07%  
 
 
BHP Billiton Limited, ADR
 
11
 
 
823
 
 
 
 
 
 
Electric Utilities - 2.69%  
 
 
Entergy Corporation
 
14
 
 
1,177
Exelon Corporation
 
18
 
 
893
 
 
 
 
 
2,070
Electrical Components & Equipment - 0.39%  
 
 
First Solar, Inc. (A)
 
2
 
 
298
 
 
 
 
 
 
Integrated Oil & Gas - 14.43%  
 
 
ConocoPhillips
 
22
 
 
1,139
Exxon Mobil Corporation
 
33
 
 
2,260
Hess Corporation
 
18
 
 
1,103
Marathon Oil Corporation
 
22
 
 
690
Occidental Petroleum Corporation
 
29
 
 
2,325
Petroleo Brasileiro S.A. - Petrobras, ADR
 
44
 
 
2,076
SandRidge Energy, Inc. (A)
 
26
 
 
245
Suncor Energy Inc.
 
36
 
 
1,282
 
 
 
 
 
11,120
Oil & Gas Drilling - 6.54%  
 
 
ENSCO International Incorporated
 
17
 
 
696
Helmerich & Payne, Inc.
 
50
 
 
1,990
Nabors Industries Ltd. (A)
 
61
 
 
1,332
Transocean Inc. (A)
 
12
 
 
1,022
 
 
 
 
 
5,040
Oil & Gas Equipment & Services - 24.84%  
 
 
Baker Hughes Incorporated
 
26
 
 
1,042
BJ Services Company
 
63
 
 
1,172
Cameron International Corporation (A)
 
52
 
 
2,155
FMC Technologies, Inc. (A)
 
24
 
 
1,385
Halliburton Company
 
104
 
 
3,130
National Oilwell Varco, Inc.
 
67
 
 
2,934
Schlumberger Limited
 
48
 
 
3,113
Smith International, Inc.
 
51
 
 
1,387
Tenaris S.A., ADR
 
41
 
 
1,738
Weatherford International Ltd. (A)
 
61
 
 
1,089
 
 
 
 
 
19,145
Oil & Gas Exploration & Production - 28.91%  
 
 
Anadarko Petroleum Corporation
 
19
 
 
1,188
Apache Corporation
 
23
 
 
2,326
Cabot Oil & Gas Corporation
 
23
 
 
983
CNOOC Limited, ADR
 
6
 
 
894
Continental Resources, Inc. (A)
 
50
 
 
2,147
Devon Energy Corporation
 
25
 
 
1,839
EOG Resources, Inc.
 
20
 
 
1,897
Newfield Exploration Company (A)
 
47
 
 
2,289
Noble Energy, Inc.
 
31
 
 
2,227
Southwestern Energy Company (A)
 
76
 
 
3,659
Ultra Petroleum Corp. (A)
 
19
 
 
932
XTO Energy Inc.
 
41
 
 
1,900
 
 
 
 
 
22,281
Oil & Gas Refining & Marketing - 1.67%  
 
 
Clean Energy Fuels Corp. (A)
 
43
 
 
663
Valero Energy Corporation
 
37
 
 
626
 
 
 
 
 
1,289
Oil & Gas Storage & Transportation - 4.80%  
 
 
El Paso Corporation
 
113
 
 
1,112
El Paso Pipeline Partners, L.P.
 
41
 
 
1,060
Enbridge Inc.
 
33
 
 
1,525
 
 
 
 
 
3,697
Semiconductor Equipment - 1.30%  
 
 
Applied Materials, Inc.
 
72
 
 
1,002
 
 
 
 
 
 
TOTAL COMMON STOCKS - 96.44%
$
74,322
(Cost: $55,545)
 
 
 
 
 

SHORT-TERM SECURITIES
Principal
Commercial Paper (B) - 1.95%  
 
 
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
 
 
 
 
 
      0.230%, 1-14-10
$
1,500
 
 
1,500
 
 
 
 
 
 
Master Note - 1.36%  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (C)
 
1,049
 
 
1,049
 
 
 
 
 
 
TOTAL SHORT-TERM SECURITIES - 3.31%
$
2,549
(Cost: $2,549)
 
 
 
 
 

TOTAL INVESTMENT SECURITIES - 99.75%
$
76,871
(Cost: $58,094)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.25%
 
 
195

NET ASSETS - 100.00%
 
 
 
$
77,066
 
Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
74,322
$
––
$   ––
      Short-Term Securities
––
2,549
––
           Total Investments in Securities
$
74,322
$
2,549
$   ––

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

(B)Rate shown is the yield to maturity at December 31, 2009.

(C)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipt











SCHEDULE OF INVESTMENTS
Ivy High Income Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



COMMON STOCKS
Shares
Value
Building Products - 0.05%  
 
 
Nortek, Inc. (A)
 
14
 
$
511
 
 
 
 
 
 
Casinos & Gaming - 0.88%  
 
 
Sands China Ltd. (A)(B)(C)
 
7,883
 
 
9,618
 
 
 
 
 
 
TOTAL COMMON STOCKS - 0.93%
$
10,129
(Cost: $9,500)
 
 
 
 
 

PREFERRED STOCKS - 0.02%
Finance
 
 
 
GMAC INC. (A)(B)(D)
 
––
*
$
199
(Cost: $––)
 
 
 
 
 
 
 
 
 
 
CORPORATE DEBT SECURITIES
Principal
Aerospace - 1.27%
 
 
 
 
 
Global Aviation Holdings, Inc.,
 
 
 
 
 
      14.000%, 8-15-13 (C)
$
2,300
 
 
2,286
Vought Aircraft Industries, Inc.,
 
 
 
 
 
      8.000%, 7-15-11
 
11,700
 
 
11,539
 
 
 
 
 
13,825
Apparel, Accessories & Luxury Goods - 0.09%
 
 
 
 
 
Perry Ellis International, Inc.,
 
 
 
 
 
      8.875%, 9-15-13
 
1,000
 
 
995
 
 
 
 
 
 
Automobile Manufacturers - 0.26%
 
 
 
 
 
Navistar International Corporation,
 
 
 
 
 
      8.250%, 11-1-21
 
1,640
 
 
1,681
UCI Holdco, Inc.,
 
 
 
 
 
      9.250%, 12-15-13 (E)(F)
 
1,379
 
 
1,166
 
 
 
 
 
2,847
Automotive Retail - 0.43%
 
 
 
 
 
AutoNation, Inc.:
 
 
 
 
 
      2.284%, 4-15-13 (E)
 
1,000
 
 
951
      7.000%, 4-15-14
 
863
 
 
891
Group 1 Automotive, Inc.,
 
 
 
 
 
      8.250%, 8-15-13
 
2,850
 
 
2,836
 
 
 
 
 
4,678
Banking - 1.72%
 
 
 
 
 
 
CapitalSource Inc.,
 
 
 
 
 
 
      12.750%, 7-15-14 (C)
 
10,550
 
 
11,289
 
JPMorgan Chase & Co.,
 
 
 
 
 
      7.900%, 4-29-  49 (E)
 
7,250
 
 
7,478
 
 
 
 
 
18,767
Broadband - 0.68%
 
 
 
 
 
Clearwire Communications LLC:
 
 
 
 
 
      12.000%, 12-1-15 (C)
 
3,700
 
 
3,756
      12.000%, 12-1-15 (C)
 
820
 
 
832
Digicel Limited,
 
 
 
 
 
      8.250%, 9-1-17 (C)
 
2,850
 
 
2,779
 
 
 
 
 
7,367
Broadcast / Outdoor - 1.32%
 
 
 
 
 
Sirius Satellite Radio Inc.,
 
 
 
 
 
      9.625%, 8-1-13
 
10,600
 
 
10,547
Sirius Satellite Radio Inc., Convertible,
 
 
 
 
 
      3.250%, 10-15-11
 
2,000
 
 
1,800
XM Satellite Radio Inc.,
 
 
 
 
 
      13.000%, 8-1-13 (C)
 
1,900
 
 
2,064
 
 
 
 
 
14,411
Building Products - 3.90%
 
 
 
 
 
CPG International I Inc.,
 
 
 
 
 
      10.500%, 7-1-13
 
500
 
 
473
Goodman Global Group, Inc.,
 
 
 
 
 
      0.000%, 12-15-14 (C)(G)
 
12,225
 
 
6,938
Goodman Global, Inc.,
 
 
 
 
 
      13.500%, 2-15-16
 
6,650
 
 
7,357
Norcraft Companies, L.P. and Norcraft Finance Corp.,
 
 
 
 
 
      10.500%, 12-15-15 (C)
 
2,905
 
 
2,978
Nortek, Inc.,
 
 
 
 
 
      11.000%, 12-1-13
 
14,463
 
 
15,113
Ply Gem Industries, Inc.,
 
 
 
 
 
      11.750%, 6-15-13
 
9,700
 
 
9,699
 
 
 
 
 
42,558
Cable - 0.16%
 
 
 
 
 
Charter Communications, Inc.,
 
 
 
 
 
 
      13.500%, 11-30-16
 
1,467
 
 
1,727
 
 
 
 
 
 
Capital Goods - 0.16%
 
 
 
 
 
RBS Global, Inc. and Rexnord LLC,
 
 
 
 
 
      8.875%, 9-1-16
 
2,000
 
 
1,740
 
 
 
 
 
 
Casinos & Gaming - 5.84%
 
 
 
 
 
American Casino & Entertainment Properties LLC and
      ACEP Finance Corp.,
 
 
 
 
 
      11.000%, 6-15-14 (C)
 
10,400
 
 
8,762
Ameristar Casinos, Inc.,
 
 
 
 
 
      9.250%, 6-1-14 (C)
 
8,755
 
 
9,083
Inn of the Mountain Gods Resort and Casino,
 
 
 
 
 
      12.000%, 11-15-10 (H)
 
1,500
 
 
621
MGM MIRAGE:
 
 
 
 
 
      13.000%, 11-15-13
 
9,060
 
 
10,396
      10.375%, 5-15-14 (C)
 
2,725
 
 
2,957
      11.125%, 11-15-17 (C)
 
6,150
 
 
6,811
Peninsula Gaming, LLC:
 
 
 
 
 
      8.375%, 8-15-15 (C)
 
1,700
 
 
1,696
      10.750%, 8-15-17 (C)
 
5,400
 
 
5,427
Pinnacle Entertainment, Inc.:
 
 
 
 
 
      8.250%, 3-15-12
 
2,064
 
 
2,064
      8.625%, 8-1-17 (C)
 
2,200
 
 
2,244
Scientific Games Corporation,
 
 
 
 
 
      9.250%, 6-15-19
 
10,725
 
 
11,261
Wynn Las Vegas, LLC and Wynn Las Vegas
      Capital Corp.,
 
 
 
 
 
      6.625%, 12-1-14
 
2,500
 
 
2,416
 
 
 
 
 
63,738
Chemicals - 1.44%
 
 
 
 
 
Nalco Company,
 
 
 
 
 
      8.875%, 11-15-13
 
6,750
 
 
6,953
Terra Capital, Inc.,
 
 
 
 
 
      7.750%, 11-1-19 (C)
 
8,125
 
 
8,693
 
 
 
 
 
15,646
Commercial Printing - 0.27%
 
 
 
 
 
Corrections Corporation of America,
 
 
 
 
 
      7.750%, 6-1-17
 
2,890
 
 
2,977
 
 
 
 
 
 
Construction Materials - 2.99%
 
 
 
 
 
 
Headwaters Incorporated,
 
 
 
 
 
 
      11.375%, 11-1-14 (C)
 
11,960
 
 
12,468
 
Headwaters Incorporated, Convertible:
 
 
 
 
 
 
      2.500%, 2-1-14
 
7,250
 
 
5,274
 
      14.750%, 2-1-14 (D)
 
8,100
 
 
8,647
      16.000%, 6-1-16 (C)
 
5,687
 
 
6,256
 
 
 
 
 
32,645
Consumer Finance - 1.48%
 
 
 
 
 
ASG Consolidated LLC and ASG Finance, Inc.,
 
 
 
 
 
      11.500%, 11-1-11
 
12,900
 
 
12,932
Ford Motor Credit Company,
 
 
 
 
 
      9.750%, 9-15-10
 
2,000
 
 
2,064
Global Cash Access, L.L.C. and Global Cash Access
      Finance Corporation,
 
 
 
 
 
      8.750%, 3-15-12
 
1,122
 
 
1,118
 
 
 
 
 
16,114
Consumer Products - 1.18%
 
 
 
 
 
Visant Holding Corp.:
 
 
 
 
 
      8.750%, 12-1-13
 
7,025
 
 
7,218
      10.250%, 12-1-13
 
5,475
 
 
5,653
 
 
 
 
 
12,871
Containers - 0.99%
 
 
 
 
 
Graham Packaging Company, L.P. and GPC Capital
      Corp. I,
 
 
 
 
 
      9.875%, 10-15-14
 
2,500
 
 
2,550
Owens-Brockway Glass Container Inc.,
 
 
 
 
 
      8.250%, 5-15-13
 
8,000
 
 
8,220
 
 
 
 
 
10,770
Department Stores - 0.22%
 
 
 
 
 
Federated Department Stores, Inc.,
 
 
 
 
 
      6.790%, 7-15-27
 
330
 
 
277
Federated Retail Holdings, Inc.,
 
 
 
 
 
      6.375%, 3-15-37
 
2,450
 
 
2,070
 
 
 
 
 
2,347
Diversified Banks - 0.15%
 
 
 
 
 
FCE Bank plc,
 
 
 
 
 
      7.875%, 2-15-11 (I)
GBP1,000
 
 
1,607
 
 
 
 
 
 
Diversified Chemicals - 0.04%
 
 
 
 
 
 
Solutia Inc.,
 
 
 
 
 
      8.750%, 11-1-17
$
400
 
 
417
 
 
 
 
 
 
Diversified Telecom - 0.33%
 
 
 
 
 
Qwest Communications International Inc.,
 
 
 
 
 
      8.000%, 10-1-15
 
3,500
 
 
3,596
 
 
 
 
 
 
Electronic Manufacturing Services - 1.95%
 
 
 
 
 
Tyco Electronics Ltd.,
 
 
 
 
 
      6.550%, 10-1-17
 
20,575
 
 
21,274
 
 
 
 
 
 
Energy - 1.18%
 
 
 
 
 
Calpine Construction Finance Company, L.P.,
 
 
 
 
 
      8.000%, 6-1-16 (C)
 
11,500
 
 
11,845
TXU Corp.,
 
 
 
 
 
      6.550%, 11-15-34
 
2,250
 
 
1,043
 
 
 
 
 
12,888
Environmental & Facilities Services - 0.15%
 
 
 
 
 
Allied Waste North America, Inc.,
 
 
 
 
 
      7.125%, 5-15-16
 
1,500
 
 
1,598
 
 
 
 
 
 
Fertilizers & Agricultural Chemicals - 0.34%
 
 
 
 
 
Mosaic Company (The),
 
 
 
 
 
      7.625%, 12-1-16 (C)
 
3,400
 
 
3,716
 
 
 
 
 
 
Finance - 6.62%
 
 
 
 
 
CEMEX Finance LLC,
 
 
 
 
 
      9.500%, 12-14-16 (C)
 
2,100
 
 
2,200
CIT Group, Inc.:
 
 
 
 
 
 
      7.000%, 5-1-13
 
5,600
 
 
5,222
 
      7.000%, 5-1-16
 
6,650
 
 
5,852
 
      7.000%, 5-1-17
 
4,750
 
 
4,121
 
CPM Holdings, Inc.,
 
 
 
 
 
 
      10.625%, 9-1-14 (C)
 
5,350
 
 
5,644
 
Dollar Financial Corp.,
 
 
 
 
 
 
      10.375%, 12-15-16 (C)
 
9,510
 
 
9,723
 
Dollar Financial Corp., Convertible,
 
 
 
 
 
 
      2.875%, 6-30-27
 
2,000
 
 
1,863
 
E*TRADE Financial Corporation:
 
 
 
 
 
 
      7.375%, 9-15-13
 
2,400
 
 
2,235
 
      7.875%, 12-1-15
 
3,850
 
 
3,585
 
      12.500%, 11-30-17 (F)
 
7,703
 
 
8,667
 
GMAC LLC:
 
 
 
 
 
 
      5.750%, 9-27-10 (C)
 
5,200
 
 
5,148
 
      6.875%, 9-15-11 (C)
 
1,424
 
 
1,403
 
Harley-Davidson Funding Corp.,
 
 
 
 
 
 
      6.800%, 6-15-18 (C)
 
8,625
 
 
8,601
 
Meridian Funding Company, LLC:
 
 
 
 
 
 
      0.812%, 7-26-10 (E)
 
1,063
 
 
1,009
 
      1.733%, 10-15-16 (C)(E)
 
2,750
 
 
2,049
 
Pinnacle Foods Finance LLC,
 
 
 
 
 
 
      9.250%, 4-1-15 (C)
 
4,750
 
 
4,821
 
 
 
 
 
72,143
Finance Companies - 1.08%
 
 
 
 
 
Central European Distribution Corporation,
 
 
 
 
 
      9.125%, 12-1-16 (C)
 
11,400
 
 
11,742
 
 
 
 
 
 
General Merchandise Stores - 0.92%
 
 
 
 
 
Dollar General Corporation,
 
 
 
 
 
      11.875%, 7-15-17
 
8,692
 
 
10,039
 
 
 
 
 
 
Health Care Equipment - 0.35%
 
 
 
 
 
Biomet, Inc.,
 
 
 
 
 
      11.625%, 10-15-17
 
3,500
 
 
3,868
 
 
 
 
 
 
Health Care Facilities - 3.18%
 
 
 
 
 
HCA - The Healthcare Company,
 
 
 
 
 
      8.750%, 9-1-10
 
2,250
 
 
2,303
HCA Inc.:
 
 
 
 
 
      6.250%, 2-15-13
 
1,750
 
 
1,702
      6.750%, 7-15-13
 
2,750
 
 
2,709
      6.375%, 1-15-15
 
2,000
 
 
1,888
      6.500%, 2-15-16
 
3,750
 
 
3,563
      9.625%, 11-15-16
 
8,008
 
 
8,667
      9.875%, 2-15-17 (C)
 
500
 
 
553
      8.500%, 4-15-19 (C)
 
4,750
 
 
5,118
HealthSouth Corporation,
 
 
 
 
 
      8.125%, 2-15-20
 
8,200
 
 
8,076
 
 
 
 
 
34,579
Health Care Facilities / Supplies - 2.22%
 
 
 
 
 
Angiotech Pharmaceuticals, Inc.,
 
 
 
 
 
 
      7.750%, 4-1-14
 
3,110
 
 
2,006
 
Catalent Pharma Solutions, Inc.:
 
 
 
 
 
 
      9.500%, 4-15-15 (F)
 
2,870
 
 
2,532
 
      9.750%, 4-15-17 (I)
EUR1,225
 
 
1,282
 
QHP Royalty Sub LLC,
 
 
 
 
 
 
      10.250%, 3-15-15 (D)
$
2,850
 
 
2,862
 
ReAble Therapeutics Finance LLC and ReAble
      Therapeutics Finance Corporation:
 
 
 
 
 
 
      10.875%, 11-15-14
 
2,350
 
 
2,479
 
      11.750%, 11-15-14
 
3,250
 
 
3,372
 
US Oncology, Inc.:
 
 
 
 
 
 
      10.750%, 8-15-14
 
5,075
 
 
5,329
 
      9.125%, 8-15-17
 
4,130
 
 
4,337
 
 
 
 
 
24,199
Hotels, Resorts & Cruise Lines - 1.95%
 
 
 
 
 
Gaylord Entertainment Company,
 
 
 
 
 
      6.750%, 11-15-14
 
8,500
 
 
7,905
Royal Caribbean Cruises Ltd.,
 
 
 
 
 
      7.500%, 10-15-27
 
2,750
 
 
2,265
Starwood Hotels & Resorts Worldwide, Inc.:
 
 
 
 
 
      6.750%, 5-15-18
 
8,000
 
 
8,021
      7.150%, 12-1-19
 
3,100
 
 
3,088
 
 
 
 
 
21,279
Household Products - 0.11%
 
 
 
 
 
Simmons Bedding Company,
 
 
 
 
 
      7.875%, 1-15-14 (H)
 
1,000
 
 
920
Simmons Company,
 
 
 
 
 
      10.000%, 12-15-14 (H)
 
2,955
 
 
236
 
 
 
 
 
1,156
Independent Finance - 0.54%
 
 
 
 
 
LPL Investment Holdings Inc.,
 
 
 
 
 
      10.750%, 12-15-15 (C)
 
5,725
 
 
5,904
 
 
 
 
 
 
Industrial - Other - 0.88%
 
 
 
 
 
General Electric Company,
 
 
 
 
 
      5.000%, 2-1-13
 
1,000
 
 
1,058
J.B. Poindexter & Co., Inc.,
 
 
 
 
 
      8.750%, 3-15-14
 
880
 
 
733
TEGSA,
 
 
 
 
 
      6.000%, 10-1-12
 
1,750
 
 
1,857
TriMas Corporation,
 
 
 
 
 
      9.750%, 12-15-17 (C)
 
1,400
 
 
1,374
Tyco Electronics Group S.A.,
 
 
 
 
 
      5.950%, 1-15-14
 
4,400
 
 
4,601
 
 
 
 
 
9,623
IT Consulting & Other Services - 0.75%
 
 
 
 
 
SunGard Data Systems Inc.:
 
 
 
 
 
      9.125%, 8-15-13
 
3,250
 
 
3,331
      10.625%, 5-15-15
 
4,400
 
 
4,846
 
 
 
 
 
8,177
Leisure - 2.18%
 
 
 
 
 
 
Regal Cinemas Corporation,
 
 
 
 
 
 
      9.375%, 2-1-12
 
2,000
 
 
2,003
 
Speedway Motorsports, Inc.:
 
 
 
 
 
 
      6.750%, 6-1-13
 
2,900
 
 
2,886
 
      8.750%, 6-1-16
 
4,950
 
 
5,221
 
Wallace Theater Holdings Inc.,
 
 
 
 
 
 
      9.956%, 6-15-13 (C)(E)
 
8,500
 
 
8,627
 
Yonkers Racing Corporation,
 
 
 
 
 
 
      11.375%, 7-15-16 (C)
 
4,750
 
 
4,988
 
 
 
 
 
23,725
Leisure Facilities - 0.43%
 
 
 
 
 
Universal City Development Partners, Ltd.,
 
 
 
 
 
      8.875%, 11-15-15 (C)
 
4,750
 
 
4,649
 
 
 
 
 
 
Machinery - 0.45%
 
 
 
 
 
Altra Holdings, Inc.,
 
 
 
 
 
      8.125%, 12-1-16 (C)
 
4,750
 
 
4,875
 
 
 
 
 
 
Metals / Mining - 1.02%
 
 
 
 
 
Compass Minerals International, Inc.,
 
 
 
 
 
      8.000%, 6-1-19 (C)
 
3,850
 
 
3,965
Teck Resources Limited:
 
 
 
 
 
      9.750%, 5-15-14
 
1,515
 
 
1,748
      10.250%, 5-15-16
 
2,270
 
 
2,645
      10.750%, 5-15-19
 
2,270
 
 
2,713
 
 
 
 
 
11,071
Office Services & Supplies - 0.74%
 
 
 
 
 
Interface, Inc.:
 
 
 
 
 
      11.375%, 11-1-13
 
5,250
 
 
5,867
      9.500%, 2-1-14
 
2,270
 
 
2,233
 
 
 
 
 
8,100
Oil & Gas Exploration & Production - 0.94%
 
 
 
 
 
Bill Barrett Corporation,
 
 
 
 
 
      9.875%, 7-15-16
 
5,725
 
 
6,097
Petrohawk Energy Corporation,
 
 
 
 
 
      9.125%, 7-15-13
 
4,000
 
 
4,180
 
 
 
 
 
10,277
Oil & Gas Storage & Transportation - 0.43%
 
 
 
 
 
Regency Energy Partners LP,
 
 
 
 
 
      9.375%, 6-1-16 (C)
 
4,430
 
 
4,718
 
 
 
 
 
 
Oil Refining & Marketing - 1.28%
 
 
 
 
 
 
Alon Refining Krotz Springs, Inc.,
 
 
 
 
 
 
      13.500%, 10-15-14 (C)
 
3,600
 
 
3,357
 
OPTI Canada Inc,
 
 
 
 
 
 
      9.000%, 12-15-12 (C)
 
5,700
 
 
5,828
 
Quicksilver Resources Inc.,
 
 
 
 
 
 
      11.750%, 1-1-16
 
4,100
 
 
4,654
 
 
 
 
 
13,839
Packaged Foods & Meats - 2.73%
 
 
 
 
 
Central Garden & Pet Company,
 
 
 
 
 
      9.125%, 2-1-13
 
29,310
 
 
29,713
 
 
 
 
 
 
Paper & Forest Products - 0.29%
 
 
 
 
 
PE Paper Escrow GmbH,
 
 
 
 
 
      12.000%, 8-1-14 (C)
 
2,880
 
 
3,182
 
 
 
 
 
 
Paper Packaging - 0.55%
 
 
 
 
 
Sealed Air Corporation:
 
 
 
 
 
      7.875%, 6-15-17 (C)
 
3,250
 
 
3,462
      6.875%, 7-15-33 (C)
 
2,750
 
 
2,587
 
 
 
 
 
6,049
Paper Products - 0.50%
 
 
 
 
 
Buckeye Technologies Inc.,
 
 
 
 
 
      8.500%, 10-1-13
 
5,377
 
 
5,491
 
 
 
 
 
 
Publishing - 0.81%
 
 
 
 
 
Nielsen Finance LLC and Nielsen Finance Co.:
 
 
 
 
 
      11.500%, 5-1-16
 
2,200
 
 
2,459
      0.000%, 8-1-16 (J)
 
7,000
 
 
6,387
 
 
 
 
 
8,846
Railroads - 0.90%
 
 
 
 
 
Kansas City Southern de Mexico, S.A. de C.V.,
 
 
 
 
 
      12.500%, 4-1-16
 
4,500
 
 
5,175
RailAmerica Inc.,
 
 
 
 
 
      9.250%, 7-1-17
 
4,365
 
 
4,643
 
 
 
 
 
9,818
Restaurants - 0.34%
 
 
 
 
 
NPC International, Inc.,
 
 
 
 
 
      9.500%, 5-1-14
 
3,750
 
 
3,713
 
 
 
 
 
 
Retail Stores - 2.29%
 
 
 
 
 
 
Jostens IH Corp.,
 
 
 
 
 
 
      7.625%, 10-1-12
 
3,500
 
 
3,518
 
May Department Stores Company (The),
 
 
 
 
 
 
      6.900%, 1-15-32
 
1,695
 
 
1,475
 
Sally Holdings LLC and Sally Capital Inc.,
 
 
 
 
 
 
      10.500%, 11-15-16
 
6,641
 
 
7,139
 
Sonic Automotive, Inc.,
 
 
 
 
 
 
      8.625%, 8-15-13
 
12,875
 
 
12,810
 
 
 
 
 
24,942
Service - Other - 8.00%
 
 
 
 
 
Education Management LLC and Education
      Management Finance Corp.:
 
 
 
 
 
      8.750%, 6-1-14
 
18,625
 
 
19,230
      10.250%, 6-1-16
 
1,985
 
 
2,124
Expedia, Inc.,
 
 
 
 
 
      8.500%, 7-1-16 (C)
 
2,435
 
 
2,633
Interpublic Group of Companies, Inc. (The),
 
 
 
 
 
      10.000%, 7-15-17
 
2,800
 
 
3,108
KAR Holdings, Inc.:
 
 
 
 
 
      4.281%, 5-1-14 (E)
 
125
 
 
117
      8.750%, 5-1-14
 
5,625
 
 
5,801
Laureate Education, Inc.:
 
 
 
 
 
      10.000%, 8-15-15 (C)
 
24,548
 
 
24,793
      11.000%, 8-15-15 (C)(F)
 
11,965
 
 
11,303
      11.750%, 8-15-17 (D)
 
2,500
 
 
2,528
Quintiles Transnational Holdings Inc,
 
 
 
 
 
      9.500%, 12-30-14 (C)
 
5,380
 
 
5,407
Reddy Ice Holdings, Inc.,
 
 
 
 
 
      10.500%, 11-1-12
 
1,435
 
 
1,335
West Corporation,
 
 
 
 
 
      9.500%, 10-15-14
 
8,610
 
 
8,739
 
 
 
 
 
87,118
Technology - 3.09%
 
 
 
 
 
DuPont Fabros Technology, L.P.,
 
 
 
 
 
 
      8.500%, 12-15-17 (C)
 
2,850
 
 
2,896
 
Jabil Circuit, Inc.:
 
 
 
 
 
 
      7.750%, 7-15-16
 
6,860
 
 
7,203
 
      8.250%, 3-15-18
 
400
 
 
428
 
L-3 Communications Corporation:
 
 
 
 
 
 
      6.125%, 7-15-13
 
4,325
 
 
4,368
 
      6.125%, 1-15-14
 
2,070
 
 
2,083
 
Terremark Worldwide, Inc.,
 
 
 
 
 
 
      12.000%, 6-15-17 (C)
 
7,950
 
 
8,785
 
Xerox Capital Trust I,
 
 
 
 
 
 
      8.000%, 2-1-27
 
8,010
 
 
7,930
 
 
 
 
 
33,693
Utilities - 0.79%
 
 
 
 
 
AES Corporation (The):
 
 
 
 
 
      9.375%, 9-15-10
 
2,000
 
 
2,065
      9.750%, 4-15-16 (C)
 
6,000
 
 
6,570
 
 
 
 
 
8,635
Wireless Telecommunication Service - 1.41%
 
 
 
 
 
Centennial Communications Corp.,
 
 
 
 
 
      6.040%, 1-1-13 (E)
 
1,750
 
 
1,750
SBA Telecommunications, Inc.:
 
 
 
 
 
      8.000%, 8-15-16 (C)
 
1,125
 
 
1,176
      8.250%, 8-15-19 (C)
 
1,125
 
 
1,193
Wind Acquisition Finance S.A.,
 
 
 
 
 
      11.750%, 7-15-17 (C)
 
10,300
 
 
11,252
 
 
 
 
 
15,371

TOTAL CORPORATE DEBT SECURITIES - 76.31% 		 
$
831,653
(Cost: $760,217)
 
 
 
 
 

MUNICIPAL BONDS - TAXABLE - 0.51%
New York
 
 
 
 
 
New York City Industrial Development Agency,
 
 
 
 
 
      11.000%, 3-1-29 (D)
 
5,000
 
$
5,558
(Cost: $5,000)
 
 
 
 
 

 
 
 
 
 
SENIOR LOANS
Broadcast / Outdoor - 0.13%
 
 
 
 
 
High Plains Broadcasting Operating Company, LLC,
 
 
 
 
 
      9.000%, 9-14-16 (E)
 
1,660
 
 
1,425
 
 
 
 
 
 
Cable & Satellite - 0.50%
 
 
 
 
 
Newport Television LLC:
 
 
 
 
 
      9.000%, 9-14-16 (E)
 
4,183
 
 
3,589
      9.000%, 9-14-16 (E)
 
2,121
 
 
1,820
 
 
 
 
 
5,409
Casinos & Gaming - 0.32%
 
 
 
 
 
Las Vegas Sands, LLC:
 
 
 
 
 
 
      2.010%, 5-23-14 (E)
 
3,277
 
 
2,861
 
      2.010%, 5-23-14 (E)
 
662
 
 
578
 
 
 
 
 
3,439
Consumer Finance - 0.14%
 
 
 
 
 
Venetian Macau Limited:
 
 
 
 
 
      4.760%, 5-25-13 (E)
 
1,363
 
 
1,289
      4.760%, 5-25-13 (E)
 
305
 
 
289
 
 
 
 
 
1,578
Diversified Chemicals - 0.87%
 
 
 
 
 
Solutia Inc.,
 
 
 
 
 
      7.250%, 2-28-14 (E)
 
9,361
 
 
9,489
 
 
 
 
 
 
Health Care Facilities - 0.14%
 
 
 
 
 
HCA Inc.,
 
 
 
 
 
      2.501%, 11-16-13 (E)
 
754
 
 
720
Iasis Healthcare Corporation,
 
 
 
 
 
      5.531%, 6-15-14 (E)
 
930
 
 
852
 
 
 
 
 
1,572
Household Products - 0.29%
 
 
 
 
 
THL Bedding Holding Company,
 
 
 
 
 
      10.500%, 12-19-11 (E)
 
3,187
 
 
3,147
 
 
 
 
 
 
Leisure Facilities - 0.87%
 
 
 
 
 
Blackstone UTP Capital LLC,
 
 
 
 
 
      7.750%, 10-29-14 (E)
 
7,000
 
 
6,970
Universal City Development Partners, Ltd.,
 
 
 
 
 
      6.500%, 10-20-14 (E)
 
2,500
 
 
2,503
 
 
 
 
 
9,473
Packaged Foods & Meats - 0.17%
 
 
 
 
 
Central Garden & Pet Company,
 
 
 
 
 
      1.420%, 9-30-12 (E)
 
2,000
 
 
1,880
 
 
 
 
 
 
Retail Stores - 1.65%
 
 
 
 
 
 
Michaels Stores, Inc.:
 
 
 
 
 
 
      2.563%, 10-31-13 (E)
 
1,918
 
 
1,738
 
      2.563%, 10-31-13 (E)
 
1,886
 
 
1,709
 
      2.563%, 10-31-13 (E)
 
1,612
 
 
1,460
 
      2.563%, 10-31-13 (E)
 
830
 
 
752
 
      4.813%, 10-31-13 (E)
 
1,757
 
 
1,592
 
      4.813%, 10-31-13 (E)
 
1,728
 
 
1,565
 
      4.813%, 10-31-13 (E)
 
1,477
 
 
1,338
 
      4.813%, 10-31-13 (E)
 
761
 
 
689
 
Rite Aid Corporation,
 
 
 
 
 
 
      9.500%, 6-5-15 (E)
 
7,000
 
 
7,222
 
 
 
 
 
18,065
Service - Other - 1.43%
 
 
 
 
 
iPayment, Inc.:
 
 
 
 
 
      2.231%, 5-10-13 (E)
 
1,224
 
 
1,106
      2.234%, 5-10-13 (E)
 
2,636
 
 
2,381
      2.251%, 5-10-13 (E)
 
5,349
 
 
4,832
Laureate Education, Inc.,
 
 
 
 
 
      7.000%, 8-1-14 (E)
 
7,488
 
 
7,263
 
 
 
 
 
15,582
Specialized Finance - 3.07%
 
 
 
 
 
CIT Group Inc.:
 
 
 
 
 
      9.500%, 1-18-12 (E)
 
12,500
 
 
12,802
      13.000%, 1-18-12 (E)
 
15,000
 
 
15,493
      13.000%, 1-18-12 (E)
 
5,000
 
 
5,164
 
 
 
 
 
33,459
Technology - 1.86%
 
 
 
 
 
Palm Inc.,
 
 
 
 
 
      3.760%, 4-24-14 (E)
 
2,705
 
 
2,313
Springboard Finance, L.L.C.,
 
 
 
 
 
      9.000%, 9-3-14 (E)
 
17,500
 
 
17,919
 
 
 
 
 
20,232
Telecommunications - 0.51%
 
 
 
 
 
Charter Communications Operating, LLC,
 
 
 
 
 
      2.260%, 3-6-14 (E)
 
5,939
 
 
5,560
 
 
 
 
 
 
Utilities - 3.08%
 
 
 
 
 
Energy Future Competitive Holdings Company and Texas
      Competitive Electric Holdings Company, LLC:
 
 
 
 
 
      3.735%, 10-10-14 (E)
 
2,179
 
 
1,765
      3.735%, 10-10-14 (E)
 
1,952
 
 
1,574
      3.751%, 10-10-14 (E)
 
23
 
 
18
Texas Competitive Electric Holdings Company, LLC:
 
 
 
 
 
      3.735%, 10-10-14 (E)
 
29,275
 
 
23,357
      3.751%, 10-10-14 (E)
 
180
 
 
144
      3.751%, 10-10-14 (E)
 
20
 
 
16
      3.775%, 10-10-14 (E)
 
8,273
 
 
6,684
 
 
 
 
 
33,558

TOTAL SENIOR LOANS - 15.03%  
$
163,868
(Cost: $152,881)
 
 
 
 
 

SHORT-TERM SECURITIES
Commercial Paper (K) - 5.62%  
 
 
Bemis Company, Inc.,
 
 
 
 
 
      0.060%, 1-4-10
 
7,125
 
 
7,125
Citigroup Funding Inc.,
 
 
 
 
 
      0.160%, 1-25-10
 
7,000
 
 
6,999
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.):
 
 
 
 
 
      0.230%, 1-14-10
 
5,500
 
 
5,500
      0.290%, 1-20-10
 
3,000
 
 
3,000
      0.280%, 1-21-10
 
8,500
 
 
8,499
McCormick & Co. Inc.,
 
 
 
 
 
      0.070%, 1-4-10
 
2,281
 
 
2,281
Straight-A Funding, LLC (Federal Financing Bank):
 
 
 
 
 
      0.120%, 1-5-10
 
8,000
 
 
8,000
      0.140%, 1-11-10
 
10,000
 
 
9,999
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.130%, 2-16-10
 
10,000
 
 
9,998
 
 
 
 
 
61,401
Commercial Paper (backed by irrevocable bank letter
      of credit) (K) - 0.83% 		 
 
 
River Fuel Trust #1 (Bank of New York (The)),
 
 
 
 
 
      0.250%, 3-15-10
 
9,000
 
 
8,995
 
 
 
 
 
 
Master Note - 0.22%  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (L)
 
2,374
 
 
2,374
 
 
 
 
 
 
Municipal Obligations - 0.37%  
 
 
Wisconsin Health and Educational Facilities Authority,
      Revenue Bonds, Series 2008-A (U.S. Bank N.A.),
 
 
 
 
 
      0.250%, 1-5-10
 
4,000
 
 
4,000
 
 
 
 
 
 
United States Government Agency Obligations - 0.46%  
 
 
Overseas Private Investment Corporation,
 
 
 
 
 
      0.160%, 3-15-10 (L)
 
5,000
 
 
5,000
 
 
 
 
 
 
TOTAL SHORT-TERM SECURITIES - 7.50%
$
81,770
(Cost: $81,770)
 
 
 
 
 

TOTAL INVESTMENT SECURITIES - 100.30%
$
1,093,177
(Cost: $1,009,368)
 
 
 
 
 
 

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.30%)
 
(3,253
)

NET ASSETS - 100.00%
 
 
 
$
1,089,924
 
 
 
Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
9,618
$
511
$
––
      Preferred Stocks
199
––
––
      Corporate Debt Securities
––
822,869
8,784
      Municipal Bonds
––
5,558
––
      Senior Loans
––
141,317
22,551
      Short-Term Securities
––
81,770
––
           Total Investments in Securities
$
9,817
$
1,052,025
$
31,335
Forward Foreign Currency Contracts
$
––
$
370
$
     ––


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

 
Corporate
Debt
Securities
Senior
Loans
Beginning Balance 4-1-09  
$
––
 
  
$
8,334
 
Net realized gain (loss)  
 
––
  
 
831
Net unrealized appreciation (depreciation)  
 
867
 
 
1,235
 
Net purchases (sales)  
 
5,389
 
  
 
362
 
Transfers in and/or (out) of Level 3 during the period  
 
2,528
 
 
11,789
Ending Balance 12-31-09  
$
8,784
 
  
$
22,551
 
Net change in unrealized appreciation (depreciation)
      for all Level 3 investments still held as of 12-31-09
$
1,592
 
$
1,742
 


The following forward foreign currency contracts were outstanding at December 31, 2009:

Type Currency Counterparty
Principal
Amount
of Contract
(Denominated
in Indicated
Currency)
Settlement
Date
Unrealized
Appreciation
Unrealized Depreciation
Sell British Pound Citibank, N.A.
39
2-16-10
$
8
$
––
Sell British Pound Citibank, N.A.
39
8-16-10
7
––
Sell British Pound Citibank, N.A.
1,038
2-15-11
187
––
Sell Euro Citibank, N.A.
60
4-15-10
4
––
Sell Euro Citibank, N.A.
60
10-15-10
3
––
Sell Euro Citibank, N.A.
60
4-15-11
3
––
Sell Euro Citibank, N.A.
60
10-14-11
3
––
Sell Euro Citibank, N.A.
60
4-13-12
3
––
Sell Euro Citibank, N.A.
60
10-15-12
4
––
Sell Euro Citibank, N.A.
60
4-15-13
4
––
Sell Euro Citibank, N.A.
60
10-15-13
4
––
Sell Euro Citibank, N.A.
60
4-15-14
4
––
Sell Euro Citibank, N.A.
60
10-15-14
4
––
Sell Euro Citibank, N.A.
59
4-15-15
5
––
Sell Euro Citibank, N.A.
60
10-15-15
5
––
Sell Euro Citibank, N.A.
60
4-15-16
5
––
Sell Euro Citibank, N.A.
60
10-14-16
5
––
Sell Euro Citibank, N.A.
1,284
4-13-17
112
––
     
 
 
$
370
$
––
*Not shown due to rounding.

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

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

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At December 31, 2009, the total value of these securities amounted to $313,024 or 28.72% of net assets.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors. At December 31, 2009, the total value of these securities amounted to $19,794 or 1.82% of net assets.

(E)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009.

(F)Payment in kind bonds.

(G)Zero coupon bond.

(H)Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy.

(I)Principal amounts are denominated in the indicated foreign currency, where applicable (EUR - Euro and GBP - British Pound).

(J)Securities do not bear interest for an initial period of time and subsequently become interest bearing.

(K)Rate shown is the yield to maturity at December 31, 2009.

(L)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.











SCHEDULE OF INVESTMENTS
Ivy Large Cap Growth Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



COMMON STOCKS
Shares
Value
Aerospace & Defense - 0.69%  
 
 
United Technologies Corporation
 
87
 
$
6,066
 
 
 
 
 
 
Air Freight & Logistics - 0.78%  
 
 
FedEx Corporation
 
83
 
 
6,885
 
 
 
 
 
 
Asset Management & Custody Banks - 3.94%  
 
 
BlackRock, Inc., Class A
 
102
 
 
23,591
T. Rowe Price Group, Inc.
 
212
 
 
11,282
 
 
 
 
 
34,873
Automotive Retail - 0.38%  
 
 
O'Reilly Automotive, Inc. (A)
 
87
 
 
3,328
 
 
 
 
 
 
Biotechnology - 2.76%  
 
 
Gilead Sciences, Inc. (A)
 
564
 
 
24,414
 
 
 
 
 
 
Casinos & Gaming - 2.57%  
 
 
Wynn Resorts, Limited (A)
 
390
 
 
22,715
 
 
 
 
 
 
Communications Equipment - 9.55%  
 
 
Cisco Systems, Inc. (A)
 
1,825
 
 
43,694
QUALCOMM Incorporated
 
822
 
 
38,030
Research In Motion Limited (A)
 
40
 
 
2,715
 
 
 
 
 
84,439
Computer Hardware - 12.32%  
 
 
Apple Inc. (A)
 
313
 
 
66,042
Hewlett-Packard Company
 
833
 
 
42,908
 
 
 
 
 
108,950
Consumer Finance - 1.71%  
 
 
American Express Company
 
373
 
 
15,114
 
 
 
 
 
 
Data Processing & Outsourced Services - 6.97%  
 
 
MasterCard Incorporated, Class A
 
99
 
 
25,240
Visa Inc., Class A
 
416
 
 
36,400
 
 
 
 
 
61,640
Department Stores - 5.27%  
 
 
Kohl's Corporation (A)
 
634
 
 
34,180
Nordstrom, Inc.
 
331
 
 
12,428
 
 
 
 
 
46,608
Diversified Banks - 1.65%  
 
 
Wells Fargo & Company
 
539
 
 
14,553
 
 
 
 
 
 
Electrical Components & Equipment - 1.71%  
 
 
Emerson Electric Co.
 
356
 
 
15,174
 
 
 
 
 
 
Fertilizers & Agricultural Chemicals - 1.47%  
 
 
Monsanto Company
 
160
 
 
13,072
 
 
 
 
 
 
General Merchandise Stores - 0.63%  
 
 
Target Corporation
 
116
 
 
5,587
 
 
 
 
 
 
Health Care Equipment - 5.04%  
 
 
Baxter International Inc.
 
353
 
 
20,702
Intuitive Surgical, Inc. (A)
 
60
 
 
18,048
Stryker Corporation
 
116
 
 
5,853
 
 
 
 
 
44,603
Home Improvement Retail - 1.71%  
 
 
Home Depot, Inc. (The)
 
523
 
 
15,116
 
 
 
 
 
 
Hotels, Resorts & Cruise Lines - 0.44%  
 
 
Carnival Corporation (A)
 
123
 
 
3,911
 
 
 
 
 
 
Household Products - 3.98%  
 
 
Colgate-Palmolive Company
 
428
 
 
35,185
 
 
 
 
 
 
Industrial Gases - 1.39%  
 
 
Praxair, Inc.
 
153
 
 
12,255
 
 
 
 
 
 
Internet Software & Services - 5.90%  
 
 
Google Inc., Class A (A)
 
84
 
 
52,140
 
 
 
 
 
 
Investment Banking & Brokerage - 0.95%  
 
 
Charles Schwab Corporation (The)
 
4
 
 
81
Goldman Sachs Group, Inc. (The)
 
49
 
 
8,341
 
 
 
 
 
8,422
Life Sciences Tools & Services - 1.29%  
 
 
Thermo Fisher Scientific Inc. (A)
 
239
 
 
11,388
 
 
 
 
 
 
Oil & Gas Equipment & Services - 4.64%  
 
 
Halliburton Company
 
139
 
 
4,173
Schlumberger Limited
 
510
 
 
33,190
Smith International, Inc.
 
134
 
 
3,628
 
 
 
 
 
40,991
Other Diversified Financial Services - 4.50%  
 
 
JPMorgan Chase & Co.
 
956
 
 
39,836
 
 
 
 
 
 
Personal Products - 0.29%  
 
 
Estee Lauder Companies Inc. (The), Class A
 
54
 
 
2,602
 
 
 
 
 
 
Pharmaceuticals - 3.57%  
 
 
Abbott Laboratories
 
314
 
 
16,927
Teva Pharmaceutical Industries Limited, ADR
 
260
 
 
14,618
 
 
 
 
 
31,545
Restaurants - 0.99%  
 
 
McDonald's Corporation
 
140
 
 
8,723
 
 
 
 
 
 
Semiconductors - 6.02%  
 
 
Altera Corporation
 
100
 
 
2,258
Broadcom Corporation, Class A (A)
 
344
 
 
10,831
Microchip Technology Incorporated
 
1,383
 
 
40,179
 
 
 
 
 
53,268
Soft Drinks - 0.10%  
 
 
Coca-Cola Company (The)
 
15
 
 
855
 
 
 
 
 
 
Specialized Finance - 0.50%  
 
 
CME Group Inc.
 
13
 
 
4,382
 
 
 
 
 
 
Specialty Chemicals - 1.10%  
 
 
Ecolab Inc.
 
218
 
 
9,707
 
 
 
 
 
 
Systems Software - 3.17%  
 
 
Microsoft Corporation
 
920
 
 
28,036
 
 
 
 
 
 
TOTAL COMMON STOCKS - 97.98%
$
866,383
(Cost: $727,323)
 
 
 
 
 

SHORT-TERM SECURITIES
Principal
Commercial Paper (B) - 1.79%  
 
 
Abbott Laboratories,
 
 
 
 
 
      0.010%, 1-4-10
$
7,835
 
 
7,835
American Honda Finance Corp.,
 
 
 
 
 
      0.140%, 1-12-10
 
5,000
 
 
5,000
Walt Disney Company (The),
 
 
 
 
 
      0.100%, 1-8-10
 
3,000
 
 
3,000
 
 
 
 
 
15,835
Master Note - 0.16%  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (C)
 
1,416
 
 
1,416
 
 
 
 
 
 
TOTAL SHORT-TERM SECURITIES - 1.95%
$
17,251
(Cost: $17,251)
 
 

TOTAL INVESTMENT SECURITIES - 99.93%
$
883,634
(Cost: $744,574)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.07%
 
 
626
NET ASSETS - 100.00%
 
 
 
$
884,260
 
Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
866,383
$
––
$   ––
      Short-Term Securities
––
17,251
––
           Total Investments in Securities
$
866,383
$
17,251
$   ––

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

(B)Rate shown is the yield to maturity at December 31, 2009.

(C)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipt











SCHEDULE OF INVESTMENTS
Ivy Limited-Term Bond Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



CORPORATE DEBT SECURITIES
Principal
Value
Aerospace & Defense - 0.41%
 
 
 
 
 
Honeywell International Inc.,
 
 
 
 
 
      3.875%, 2-15-14
$
3,100
 
$
3,230
 
 
 
 
 
 
Airlines - 0.68%
 
 
 
 
 
Southwest Airlines Co.,
 
 
 
 
 
      6.500%, 3-1-12
 
5,000
 
 
5,320
 
 
 
 
 
 
Banking - 3.60%
 
 
 
 
 
Barclays Bank PLC,
 
 
 
 
 
      2.500%, 1-23-13
 
5,000
 
 
4,994
Citigroup Inc. (Federal Deposit Insurance Corporation),
 
 
 
 
      2.875%, 12-9-11 (A)
 
6,000
 
 
6,180
JPMorgan Chase & Co.:
 
 
 
 
 
      4.600%, 1-17-11
 
1,225
 
 
1,267
      5.375%, 10-1-12
 
2,000
 
 
2,164
      4.650%, 6-1-14
 
5,000
 
 
5,267
Regions Bank (Federal Deposit Insurance Corporation),
 
 
 
 
      3.250%, 12-9-11 (A)
 
6,000
 
 
6,226
State Street Corporation,
 
 
 
 
 
      4.300%, 5-30-14
 
2,000
 
 
2,070
 
 
 
 
 
28,168
Beverage / Bottling - 1.69%
 
 
 
 
 
Anheuser-Busch InBev Worldwide Inc.:
 
 
 
 
 
      5.375%, 11-15-14 (B)
 
5,500
 
 
5,823
      4.125%, 1-15-15 (C)
 
5,000
 
 
5,077
Bottling Group, LLC,
 
 
 
 
 
      6.950%, 3-15-14
 
2,000
 
 
2,301
 
 
 
 
 
13,201
Cable & Satellite - 0.60%
 
 
 
 
 
Cox Communications, Inc.,
 
 
 
 
 
      4.625%, 1-15-10
 
1,000
 
 
1,001
Time Warner Cable Inc.,
 
 
 
 
 
      3.500%, 2-1-15
 
3,750
 
 
3,705
 
 
 
 
 
4,706
Communications Equipment - 0.67%
 
 
 
 
 
Cisco Systems, Inc.,
 
 
 
 
 
      5.250%, 2-22-11
 
5,000
 
 
5,247
 
 
 
 
 
 
Computer Hardware - 0.85%
 
 
 
 
 
Dell Inc.,
 
 
 
 
 
      3.375%, 6-15-12
 
2,000
 
 
2,068
Hewlett-Packard Company,
 
 
 
 
 
      6.500%, 7-1-12
 
1,500
 
 
1,657
International Business Machines Corporation,
 
 
 
 
 
      6.500%, 10-15-13
 
2,500
 
 
2,857
 
 
 
 
 
6,582
Construction & Farm Machinery & Heavy Trucks - 1.00%
 
 
 
Caterpillar Inc.,
 
 
 
 
 
      7.000%, 12-15-13
 
2,000
 
 
2,313
John Deere Capital Corporation,
 
 
 
 
 
      5.250%, 10-1-12
 
5,000
 
 
5,401
 
 
 
 
 
7,714
Consumer Finance - 1.10%
 
 
 
 
 
American Express Travel Related Services Co., Inc.,
 
 
 
 
 
      5.250%, 11-21-11 (C)
 
6,000
 
 
6,293
Capital One Financial Corporation,
 
 
 
 
 
      7.375%, 5-23-14
 
2,000
 
 
2,264
 
 
 
 
 
8,557
Distillers & Vintners - 0.65%
 
 
 
 
 
Diageo Capital plc,
 
 
 
 
 
      4.375%, 5-3-10
 
5,000
 
 
5,067
 
 
 
 
 
 
Diversified Banks - 0.20%
 
 
 
 
 
Wells Fargo Financial, Inc.,
 
 
 
 
 
      5.500%, 8-1-12
 
1,487
 
 
1,592
 
 
 
 
 
 
Diversified Chemicals - 1.49%
 
 
 
 
 
Dow Chemical Company (The),
 
 
 
 
 
      7.600%, 5-15-14
 
5,000
 
 
5,689
E.I. du Pont de Nemours and Company,
 
 
 
 
 
      3.250%, 1-15-15
 
6,000
 
 
5,944
 
 
 
 
 
11,633
Diversified Metals & Mining - 0.56%
 
 
 
 
 
BHP Billiton Finance (USA) Limited,
 
 
 
 
 
      5.500%, 4-1-14
 
4,000
 
 
4,387
 
 
 
 
 
 
Electric - 2.61%
 
 
 
 
 
NorthWestern Corporation,
 
 
 
 
 
      5.875%, 11-1-14
 
2,000
 
 
2,075
Oncor Electric Delivery Company,
 
 
 
 
 
      6.375%, 5-1-12
 
7,500
 
 
8,100
SCANA Corporation,
 
 
 
 
 
      6.250%, 2-1-12
 
5,000
 
 
5,294
Southern Power Company,
 
 
 
 
 
      6.250%, 7-15-12
 
4,500
 
 
4,901
 
 
 
 
 
20,370
Environmental & Facilities Services - 0.58%
 
 
 
 
 
Allied Waste Industries, Inc.,
 
 
 
 
 
      6.500%, 11-15-10
 
4,375
 
 
4,549
 
 
 
 
 
 
Finance - Other - 2.84%
 
 
 
 
 
General Electric Capital Corporation,
 
 
 
 
 
      3.750%, 11-14-14
 
8,000
 
 
7,985
General Electric Capital Corporation (Federal Deposit
      Insurance Corporation),
 
 
 
 
 
      3.000%, 12-9-11 (A)
 
6,000
 
 
6,185
TIAA Global Markets, Inc.,
 
 
 
 
 
      5.125%, 10-10-12 (B)
 
2,250
 
 
2,425
Western Union Company (The),
 
 
 
 
 
      6.500%, 2-26-14
 
5,000
 
 
5,559
 
 
 
 
 
22,154
Food Processors - 2.15%
 
 
 
 
 
Cargill, Incorporated,
 
 
 
 
 
      5.600%, 9-15-12 (B)
 
7,732
 
 
8,318
General Mills, Inc.,
 
 
 
 
 
      6.000%, 2-15-12
 
5,000
 
 
5,398
Kellogg Company,
 
 
 
 
 
      4.450%, 5-30-16
 
2,950
 
 
3,038
 
 
 
 
 
16,754
Gas - Local Distribution - 1.22%
 
 
 
 
 
AGL Capital Corporation,
 
 
 
 
 
      7.125%, 1-14-11
 
4,000
 
 
4,221
DCP Midstream, LLC,
 
 
 
 
 
      9.700%, 12-1-13 (B)
 
4,500
 
 
5,313
 
 
 
 
 
9,534
Gas Pipe Lines - 1.38%
 
 
 
 
 
Maritimes & Northeast Pipeline, L.L.C.,
 
 
 
 
 
      7.500%, 5-31-14 (B)
 
5,885
 
 
6,441
Northern Natural Gas,
 
 
 
 
 
      7.000%, 6-1-11 (C)
 
4,000
 
 
4,299
 
 
 
 
 
10,740
Health Care Supply - 0.66%
 
 
 
 
 
Providence Health & Services Obligated Group, Direct
      Obligation Notes, Series 2009A,
 
 
 
 
 
      5.050%, 10-1-14
 
5,000
 
 
5,131
 
 
 
 
 
 
Home Improvement Retail - 0.53%
 
 
 
 
 
Lowe's Companies, Inc.,
 
 
 
 
 
      5.600%, 9-15-12
 
3,736
 
 
4,106
 
 
 
 
 
 
Hypermarkets & Super Centers - 0.41%
 
 
 
 
 
Wal-Mart Stores, Inc.,
 
 
 
 
 
      4.550%, 5-1-13
 
3,000
 
 
3,196
 
 
 
 
 
 
Industrial Machinery - 0.70%
 
 
 
 
 
Illinois Tool Works Inc.,
 
 
 
 
 
      5.150%, 4-1-14
 
5,000
 
 
5,447
 
 
 
 
 
 
Integrated Oil & Gas - 1.41%
 
 
 
 
 
Chevron Corporation,
 
 
 
 
 
      3.950%, 3-3-14
 
5,000
 
 
5,220
ConocoPhillips,
 
 
 
 
 
      4.600%, 1-15-15
 
5,500
 
 
5,841
 
 
 
 
 
11,061
Integrated Telecommunication Services - 0.34%
 
 
 
 
 
AT&T Inc.,
 
 
 
 
 
      4.950%, 1-15-13
 
500
 
 
533
AT&T Wireless Services, Inc.,
 
 
 
 
 
      7.875%, 3-1-11
 
2,000
 
 
2,149
 
 
 
 
 
2,682
Investment Banking & Brokerage - 1.54%
 
 
 
 
 
Goldman Sachs Group, Inc. (The),
 
 
 
 
 
      6.875%, 1-15-11
 
3,500
 
 
3,711
Morgan Stanley (Federal Deposit Insurance Corporation),
 
 
 
 
      3.250%, 12-1-11 (A)
 
8,000
 
 
8,299
 
 
 
 
 
12,010
Life Insurance - 1.16%
 
 
 
 
 
MetLife Global Funding I,
 
 
 
 
 
      5.125%, 6-10-14 (B)
 
3,500
 
 
3,704
MetLife, Inc.,
 
 
 
 
 
      6.125%, 12-1-11
 
5,000
 
 
5,375
 
 
 
 
 
9,079
Metals / Mining - 0.77%
 
 
 
 
 
Rio Tinto Finance (USA) Limited,
 
 
 
 
 
      8.950%, 5-1-14
 
5,000
 
 
5,992
 
 
 
 
 
 
Oil & Gas - 1.17%
 
 
 
 
 
Petro-Canada,
 
 
 
 
 
      4.000%, 7-15-13
 
4,500
 
 
4,646
Western Oil Sands Inc.,
 
 
 
 
 
      8.375%, 5-1-12
 
4,000
 
 
4,477
 
 
 
 
 
9,123
Oilfield Machinery & Service - 0.69%
 
 
 
 
 
Weatherford International, Inc.,
 
 
 
 
 
      5.950%, 6-15-12
 
5,000
 
 
5,351
 
 
 
 
 
 
Other Diversified Financial Services - 1.49%
 
 
 
 
 
Bank of America Corporation,
 
 
 
 
 
      6.500%, 8-1-16
 
5,000
 
 
5,377
Bank of America Corporation (Federal Deposit
      Insurance Corporation),
 
 
 
 
 
      3.125%, 6-15-12 (A)
 
6,000
 
 
6,217
 
 
 
 
 
11,594
Packaged Foods & Meats - 0.71%
 
 
 
 
 
Kraft Foods, Inc.,
 
 
 
 
 
      6.750%, 2-19-14
 
5,000
 
 
5,529
 
 
 
 
 
 
Pharmaceuticals - 3.26%
 
 
 
 
 
Eli Lilly and Company,
 
 
 
 
 
      4.200%, 3-6-14
 
5,775
 
 
6,058
Merck & Co., Inc.,
 
 
 
 
 
      4.000%, 6-30-15
 
2,000
 
 
2,086
Novartis Capital Corporation,
 
 
 
 
 
      4.125%, 2-10-14
 
2,000
 
 
2,102
Pfizer Inc.,
 
 
 
 
 
      5.350%, 3-15-15
 
5,000
 
 
5,465
Roche Holdings Ltd,
 
 
 
 
 
      5.000%, 3-1-14 (B)
 
4,000
 
 
4,279
Wyeth,
 
 
 
 
 
      5.500%, 2-1-14
 
5,000
 
 
5,447
 
 
 
 
 
25,437
Property & Casualty Insurance - 1.36%
 
 
 
 
 
Berkshire Hathaway Finance Corporation:
 
 
 
 
 
      4.000%, 4-15-12
 
8,000
 
 
8,384
      4.750%, 5-15-12
 
550
 
 
586
      5.000%, 8-15-13
 
1,500
 
 
1,613
 
 
 
 
 
10,583
Restaurants - 0.74%
 
 
 
 
 
YUM! Brands, Inc.,
 
 
 
 
 
      4.250%, 9-15-15
 
5,750
 
 
5,767
 
 
 
 
 
 
Retail Stores - Food / Drug - 0.82%
 
 
 
 
 
Walgreen Co.,
 
 
 
 
 
      4.875%, 8-1-13
 
6,000
 
 
6,443
 
 
 
 
 
 
Retail Stores - Other - 0.61%
 
 
 
 
 
Best Buy Co., Inc.,
 
 
 
 
 
      6.750%, 7-15-13
 
4,300
 
 
4,724
 
 
 
 
 
 
Service - Other - 0.59%
 
 
 
 
 
Waste Management, Inc.,
 
 
 
 
 
      6.375%, 3-11-15
 
4,175
 
 
4,626
 
 
 
 
 
 
Soft Drinks - 1.41%
 
 
 
 
 
Coca-Cola Company (The),
 
 
 
 
 
      3.625%, 3-15-14
 
4,200
 
 
4,329
Coca-Cola Enterprises Inc.,
 
 
 
 
 
      4.250%, 3-1-15
 
3,000
 
 
3,151
PepsiCo, Inc.,
 
 
 
 
 
      3.750%, 3-1-14
 
3,400
 
 
3,514
 
 
 
 
 
10,994
Telecommunications - 1.66%
 
 
 
 
 
American Tower Corporation,
 
 
 
 
 
      4.625%, 4-1-15 (C)
 
3,000
 
 
3,034
British Telecommunications plc,
 
 
 
 
 
      5.150%, 1-15-13
 
1,000
 
 
1,043
Deutsche Telekom International Finance B.V.,
 
 
 
 
 
      4.875%, 7-8-14
 
4,000
 
 
4,195
Verizon New York Inc.,
 
 
 
 
 
      6.875%, 4-1-12
 
4,250
 
 
4,624
 
 
 
 
 
12,896
Trucking & Shipping - 0.89%
 
 
 
 
 
Federal Express Corporation,
 
 
 
 
 
      9.650%, 6-15-12
 
6,005
 
 
6,948
 
 
 
 
 
 
TOTAL CORPORATE DEBT SECURITIES - 47.20%  
$
368,224
(Cost: $346,729)
 
 
 
 
 

MUNICIPAL BONDS - TAXABLE
Georgia - 0.25%
 
 
 
 
 
Hospital Authority of Savannah, Revenue Bonds,
      St. Joseph's/Candler Health System, Inc.,
      Series 1998C,
 
 
 
 
 
      6.625%, 7-1-18
 
1,950
 
 
1,939
 
 
 
 
 
 
Massachusetts - 0.74%
 
 
 
 
 
Massachusetts Housing Finance Agency, Single Family
      Housing Revenue Bonds, Series 81,
 
 
 
 
 
      7.700%, 6-1-32
 
5,755
 
 
5,796
 
 
 
 
 
 
Missouri - 0.07%
 
 
 
 
 
Missouri Development Finance Board, Taxable
      Infrastructure Facilities Revenue Bonds
      (City of Independence, Missouri - Crackerneck
      Creek Project), Series 2006A,
 
 
 
 
 
      5.350%, 3-1-10
 
515
 
 
517
 
 
 
 
 
 
Nebraska - 0.84%
 
 
 
 
 
Nebraska Public Power District, General Revenue Bonds,
      2008 Series A,
 
 
 
 
 
      5.140%, 1-1-14
 
6,150
 
 
6,586
 
 
 
 
 
 
TOTAL MUNICIPAL BONDS - TAXABLE - 1.90%  
$
14,838
(Cost: $14,580)
 
 
 
 
 

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations - 7.57%  
 
 
Federal Farm Credit Bank:
 
 
 
 
 
      4.750%, 9-30-15
 
4,000
 
 
4,293
      5.250%, 1-6-16
 
4,000
 
 
4,377
Federal Home Loan Bank:
 
 
 
 
 
      3.375%, 9-10-10
 
5,000
 
 
5,096
      4.375%, 9-13-13
 
6,000
 
 
6,451
Federal Home Loan Mortgage Corporation:
 
 
 
 
 
      4.500%, 7-6-10
 
5,000
 
 
5,102
      3.125%, 10-25-10
 
2,500
 
 
2,552
Federal National Mortgage Association:
 
 
 
 
 
      2.000%, 3-2-11
 
5,000
 
 
5,014
      2.500%, 3-19-12
 
5,000
 
 
5,023
      4.000%, 1-18-13
 
2,500
 
 
2,572
      2.910%, 2-25-13
 
10,000
 
 
10,025
      4.375%, 7-17-13
 
8,000
 
 
8,576
 
 
 
 
 
59,081
Mortgage-Backed Obligations - 22.92%  
 
 
Federal Home Loan Mortgage Corporation Adjustable Rate
      Participation Certificates:
 
 
 
 
 
      4.500%, 1-15-18
 
3,122
 
 
3,249
      4.000%, 6-15-22
 
4,697
 
 
4,847
      4.000%, 2-15-23
 
6,934
 
 
7,163
      4.500%, 6-15-27
 
7,925
 
 
8,242
      4.500%, 5-15-32
 
7,000
 
 
7,239
      5.000%, 9-15-34
 
6,090
 
 
6,362
Federal Home Loan Mortgage Corporation Agency
      REMIC/CMO:
 
 
 
 
 
      5.000%, 5-15-31
 
1,464
 
 
1,517
      5.500%, 12-15-31
 
3,000
 
 
3,150
Federal Home Loan Mortgage Corporation Agency
      REMIC/CMO (Interest Only), (D)
 
 
 
 
 
      5.000%, 6-15-24
 
229
 
 
2
Federal Home Loan Mortgage Corporation Fixed Rate
      Participation Certificates:
 
 
 
 
 
      5.500%, 4-1-20
 
3,630
 
 
3,869
      4.500%, 10-1-20
 
4,158
 
 
4,330
      6.000%, 11-1-36
 
2,215
 
 
2,354
Federal National Mortgage Association Agency
      REMIC/CMO:
 
 
 
 
 
      4.720%, 9-20-12
 
6,656
 
 
7,026
      4.780%, 1-25-17
 
4,735
 
 
4,936
      5.000%, 11-25-17
 
11,640
 
 
12,277
      5.500%, 12-25-17
 
8,381
 
 
8,983
      5.000%, 9-25-18
 
1,500
 
 
1,564
      4.500%, 2-25-28
 
2,038
 
 
2,102
      5.500%, 7-15-32
 
5,000
 
 
5,280
      5.500%, 10-25-32
 
1,000
 
 
1,050
      5.000%, 12-15-34
 
5,000
 
 
5,166
      4.500%, 5-25-37
 
6,932
 
 
7,138
      4.000%, 3-25-39
 
5,812
 
 
5,902
Federal National Mortgage Association Agency
      REMIC/CMO (Interest Only), (D)
 
 
 
 
 
      5.500%, 11-25-36
 
1,338
 
 
195
Federal National Mortgage Association Fixed Rate
      Pass-Through Certificates:
 
 
 
 
 
      5.500%, 9-1-17
 
10,116
 
 
10,756
      4.500%, 9-1-19
 
10,138
 
 
10,542
      5.500%, 2-1-22
 
11,208
 
 
11,935
      6.000%, 6-1-22
 
6,097
 
 
6,522
      5.500%, 11-1-22
 
1,149
 
 
1,225
      5.000%, 4-1-28
 
6,422
 
 
6,646
      5.000%, 5-1-28
 
1,766
 
 
1,827
      5.000%, 6-25-32
 
3,250
 
 
3,384
      6.000%, 7-1-38
 
4,895
 
 
5,190
Government National Mortgage Association Agency
      REMIC/CMO:
 
 
 
 
 
      4.585%, 8-16-34
 
1,700
 
 
1,772
      5.000%, 4-16-39
 
4,867
 
 
5,044
 
 
 
 
 
178,786

TOTAL UNITED STATES GOVERNMENT AGENCY
      OBLIGATIONS - 30.49%		  
$
237,867
(Cost: $235,741)
 
 
 
 
 

UNITED STATES GOVERNMENT OBLIGATIONS - 14.14%
Treasury Obligations  
 
 
United States Treasury Notes:
 
 
 
 
 
      4.000%, 4-15-10
 
5,000
 
 
5,054
      2.625%, 5-31-10
 
5,000
 
 
5,049
      4.500%, 11-15-10
 
5,000
 
 
5,174
      4.500%, 2-28-11
 
5,000
 
 
5,219
      5.125%, 6-30-11
 
5,000
 
 
5,313
      5.000%, 8-15-11
 
3,000
 
 
3,199
      4.625%, 8-31-11
 
10,000
 
 
10,604
      4.500%, 11-30-11
 
6,000
 
 
6,389
      4.625%, 2-29-12
 
5,000
 
 
5,359
      4.750%, 5-31-12
 
5,000
 
 
5,400
      4.125%, 8-31-12
 
4,500
 
 
4,811
      3.875%, 2-15-13
 
6,000
 
 
6,390
      3.375%, 7-31-13
 
10,000
 
 
10,497
      4.250%, 8-15-13
 
6,500
 
 
7,014
      2.375%, 8-31-14
 
25,000
 
 
24,815
(Cost: $108,536)
 
 
 
$
110,287
 
 
 
 
 
SHORT-TERM SECURITIES
Commercial Paper (E) - 3.33%  
 
 
American Honda Finance Corp.,
 
 
 
 
 
      0.160%, 1-22-10
 
3,000
 
 
3,000
CVS Caremark Corporation,
 
 
 
 
 
      0.230%, 1-13-10
 
3,000
 
 
3,000
McCormick & Co. Inc.,
 
 
 
 
 
      0.070%, 1-4-10
 
4,975
 
 
4,975
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.130%, 2-16-10
 
10,000
 
 
9,998
Wisconsin Electric Power Co.,
 
 
 
 
 
      0.110%, 1-4-10
 
5,009
 
 
5,009
 
 
 
 
 
25,982
Master Note - 0.19%  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (F)
 
1,453
 
 
1,453
 
 
 
 
 
 
Municipal Obligations - 1.92%  
 
 
California Pollution Control Financing Authority,
      Pollution Control Refunding Revenue Bonds
      (Pacific Gas and Electric Company), Series C
      (JPMorgan Chase Bank),
 
 
 
 
 
      0.200%, 1-4-10 (F)
 
15,000
 
 
15,000
 
 
 
 
 
 
TOTAL SHORT-TERM SECURITIES - 5.44%
$
42,435
(Cost: $42,435)
 
 
 
 
 

TOTAL INVESTMENT SECURITIES - 99.17%
$
773,651
(Cost: $748,021)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.83%  
 
6,446

NET ASSETS - 100.00%
$
780,097
 
Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Corporate Debt Securities
$   ––
$368,224
$   ––
      Municipal Bonds
––
14,838
––
      United States Government Agency Obligations
––
237,867
––
      United States Government Obligations
––
110,287
––
      Short-Term Securities
––
42,435
––
           Total Investments in Securities
$   ––
$773,651
$   ––


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

 
Corporate
Debt
Securities
Beginning Balance 4-1-09  
$
3,103
 
Net realized gain (loss)  
 
140
Net unrealized appreciation (depreciation)  
 
(99
)
Net purchases (sales)  
 
(3,144
)
Transfers in and/or (out) of Level 3 during the period  
 
––
Ending Balance 12-31-09  
$
––
 
Net change in unrealized appreciation (depreciation)
      for all Level 3 investments still held as of 12-31-09		  
$
––

(A)Security is fully guaranteed by the Federal Deposit Insurance Corporation for both interest and principal under the Debt Guarantee Program of the Temporary Liquidity Guarantee Program. The guarantee expires at the earlier of the security's maturity date or December 31, 2012.

(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At December 31, 2009, the total value of these securities amounted to $36,303 or 4.65% of net assets.

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors. At December 31, 2009, the total value of these securities amounted to $18,703 or 2.40% of net assets.

(D)Amount shown in principal column represents notional amount for computation of interest.

(E)Rate shown is the yield to maturity at December 31, 2009.

(F)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.

The following acronyms are used throughout this schedule:
CMO = Collateralized Mortgage Obligation
REMIC = Real Estate Mortgage Investment Conduit












SCHEDULE OF INVESTMENTS
Ivy Mid Cap Growth Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



COMMON STOCKS
Shares
Value
Air Freight & Logistics - 3.43%  
 
 
C.H. Robinson Worldwide, Inc.
 
49
 
$
2,884
Expeditors International of Washington, Inc.
 
118
 
 
4,091
 
 
 
 
 
6,975
Apparel Retail - 3.99%  
 
 
J. Crew Group, Inc. (A)
 
100
 
 
4,480
Urban Outfitters, Inc. (A)
 
103
 
 
3,607
 
 
 
 
 
8,087
Apparel, Accessories & Luxury Goods - 0.83%  
 
 
lululemon athletica inc. (A)
 
56
 
 
1,694
 
 
 
 
 
 
Application Software - 2.49%  
 
 
Solera Holdings, Inc.
 
141
 
 
5,072
 
 
 
 
 
 
Auto Parts & Equipment - 0.98%  
 
 
BorgWarner Inc.
 
60
 
 
1,993
 
 
 
 
 
 
Automotive Retail - 0.74%  
 
 
Penske Automotive Group, Inc.
 
100
 
 
1,512
 
 
 
 
 
 
Brewers - 0.93%  
 
 
Molson Coors Brewing Company, Class B
 
42
 
 
1,901
 
 
 
 
 
 
Casinos & Gaming - 0.46%  
 
 
Las Vegas Sands, Inc. (A)
 
63
 
 
940
 
 
 
 
 
 
Catalog Retail - 0.74%  
 
 
Coldwater Creek Inc. (A)
 
339
 
 
1,514
 
 
 
 
 
 
Computer Storage & Peripherals - 3.71%  
 
 
NetApp, Inc. (A)
 
154
 
 
5,280
QLogic Corporation (A)
 
121
 
 
2,275
 
 
 
 
 
7,555
Construction & Engineering - 1.03%  
 
 
Quanta Services, Inc. (A)
 
101
 
 
2,104
 
 
 
 
 
 
Consumer Finance - 1.86%  
 
 
Discover Financial Services
 
257
 
 
3,774
 
 
 
 
 
 
Data Processing & Outsourced Services - 4.97%  
 
 
Global Payments Inc.
 
72
 
 
3,859
Paychex, Inc.
 
204
 
 
6,241
 
 
 
 
 
10,100
Department Stores - 1.08%  
 
 
Nordstrom, Inc.
 
59
 
 
2,202
 
 
 
 
 
 
Distillers & Vintners - 1.53%  
 
 
Brown-Forman Corporation, Class B
 
58
 
 
3,108
 
 
 
 
 
 
Electrical Components & Equipment - 2.83%  
 
 
Cooper Industries, Ltd., Class A
 
46
 
 
1,951
Hubbell Incorporated, Class B
 
39
 
 
1,828
Roper Industries, Inc.
 
38
 
 
1,982
 
 
 
 
 
5,761
Food Retail - 3.24%  
 
 
Whole Foods Market, Inc. (A)
 
240
 
 
6,588
 
 
 
 
 
 
Gas Utilities - 1.99%  
 
 
Equitable Resources, Inc.
 
92
 
 
4,043
 
 
 
 
 
 
Health Care Distributors - 1.58%  
 
 
Henry Schein, Inc. (A)
 
61
 
 
3,206
 
 
 
 
 
 
Health Care Equipment - 5.44%  
 
 
Hologic, Inc. (A)
 
243
 
 
3,527
Hospira, Inc. (A)
 
94
 
 
4,807
Intuitive Surgical, Inc. (A)
 
6
 
 
1,683
Wright Medical Group, Inc. (A)
 
55
 
 
1,039
 
 
 
 
 
11,056
Health Care Supplies - 1.99%  
 
 
DENTSPLY International Inc.
 
115
 
 
4,052
 
 
 
 
 
 
Hotels, Resorts & Cruise Lines - 1.93%  
 
 
Royal Caribbean Cruises Ltd. (A)
 
81
 
 
2,048
Starwood Hotels & Resorts Worldwide, Inc.
 
52
 
 
1,885
 
 
 
 
 
3,933
Industrial Machinery - 4.92%  
 
 
Donaldson Company, Inc.
 
52
 
 
2,191
Flowserve Corporation
 
10
 
 
936
IDEX Corporation
 
139
 
 
4,321
Kaydon Corporation
 
71
 
 
2,544
 
 
 
 
 
9,992
Internet Software & Services - 1.48%  
 
 
DealerTrack Holdings, Inc. (A)
 
161
 
 
3,020
 
 
 
 
 
 
Investment Banking & Brokerage - 3.21%  
 
 
Lazard Group LLC
 
87
 
 
3,296
TD Ameritrade Holding Corporation (A)
 
168
 
 
3,248
 
 
 
 
 
6,544
Oil & Gas Equipment & Services - 2.55%  
 
 
Dresser-Rand Group Inc. (A)
 
77
 
 
2,447
National Oilwell Varco, Inc.
 
62
 
 
2,729
 
 
 
 
 
5,176
Oil & Gas Exploration & Production - 3.58%  
 
 
Noble Energy, Inc.
 
72
 
 
5,149
Ultra Petroleum Corp. (A)
 
43
 
 
2,151
 
 
 
 
 
7,300
Packaged Foods & Meats - 2.40%  
 
 
Hershey Foods Corporation
 
79
 
 
2,809
Ralcorp Holdings, Inc. (A)
 
35
 
 
2,063
 
 
 
 
 
4,872
Paper Packaging - 1.42%  
 
 
Sealed Air Corporation
 
42
 
 
908
Sonoco Products Company
 
68
 
 
1,994
 
 
 
 
 
2,902
Pharmaceuticals - 2.57%  
 
 
Allergan, Inc.
 
83
 
 
5,230
 
 
 
 
 
 
Publishing - 2.26%  
 
 
Meredith Corporation
 
149
 
 
4,597
 
 
 
 
 
 
Real Estate Management & Development - 0.24%  
 
 
CB Richard Ellis Group, Inc., Class A (A)
 
35
 
 
479
 
 
 
 
 
 
Regional Banks - 1.77%  
 
 
Signature Bank (A)
 
113
 
 
3,598
 
 
 
 
 
 
Research & Consulting Services - 0.78%  
 
 
Verisk Analytics, Inc., Class A (A)
 
52
 
 
1,588
 
 
 
 
 
 
Restaurants - 2.73%  
 
 
Chipotle Mexican Grill, Inc., Class A (A)
 
24
 
 
2,138
P.F. Chang's China Bistro, Inc. (A)
 
90
 
 
3,406
 
 
 
 
 
5,544
Semiconductors - 6.37%  
 
 
Linear Technology Corporation
 
107
 
 
3,268
Microchip Technology Incorporated
 
212
 
 
6,163
NVIDIA Corporation (A)
 
188
 
 
3,520
 
 
 
 
 
12,951
Specialized Finance - 1.34%  
 
 
CME Group Inc.
 
8
 
 
2,721
 
 
 
 
 
 
Specialty Chemicals - 1.01%  
 
 
RPM International Inc.
 
101
 
 
2,045
 
 
 
 
 
 
Specialty Stores - 1.91%  
 
 
PetSmart, Inc.
 
145
 
 
3,882
 
 
 
 
 
 
Systems Software - 0.82%  
 
 
ArcSight, Inc. (A)
 
65
 
 
1,668
 
 
 
 
 
 
Thrifts & Mortgage Finance - 0.96%  
 
 
People's United Financial, Inc.
 
117
 
 
1,951
 
 
 
 
 
 
Trading Companies & Distributors - 2.58%  
 
 
Fastenal Company
 
126
 
 
5,245
 
 
 
 
 
 
Trucking - 1.59%  
 
 
J.B. Hunt Transport Services, Inc.
 
47
 
 
1,527
Knight Transportation, Inc.
 
89
 
 
1,709
 
 
 
 
 
3,236

TOTAL COMMON STOCKS - 94.26%
$
191,711
(Cost: $162,371)
 
 
 
 
 

CORPORATE DEBT SECURITIES - 0.12%
Principal
Health Care Equipment
 
 
 
 
 
Wright Medical Group, Inc., Convertible,
 
 
 
 
 
      2.625%, 12-1-14
$
280
 
$
245
(Cost: $219)
 
 
 
 
 
 
 
 
 
 
SHORT-TERM SECURITIES - 5.55%
Commercial Paper (B)
 
 
 
Citigroup Funding Inc.,
 
 
 
 
 
      0.160%, 1-22-10
 
2,500
 
 
2,500
ITT Corporation,
 
 
 
 
 
      0.090%, 1-4-10
 
3,780
 
 
3,779
River Fuel Trust #1 (Bank of New York (The)),
 
 
 
 
 
      0.230%, 1-15-10
 
2,000
 
 
2,000
Wisconsin Electric Power Co.,
 
 
 
 
 
      0.110%, 1-4-10
 
3,000
 
 
3,000
(Cost: $11,279)
 
 
 
$
11,279
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 99.93%
$
203,235
(Cost: $173,869)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.07%
 
 
138

NET ASSETS - 100.00%
 
 
 
$
203,373

Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
191,711
$
––
$   ––
      Corporate Debt Securities
––
245
––
      Short-Term Securities
––
11,279
––
           Total Investments in Securities
$
191,711
$
11,524
$   ––

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

 
Call
Options
Written
Options
Beginning Balance 4-1-09  
$
270
 
  
$
(647
)
Net realized gain (loss)  
 
783
  
 
599
Net unrealized appreciation (depreciation)  
 
515
  
 
(37
)
Net purchases (sales)  
 
(1,568
)
  
 
85
 
Transfers in and/or (out) of Level 3 during the period  
 
––
 
 
––
Ending Balance 12-31-09  
$
––
 
  
$
––
 
Net change in unrealized appreciation (depreciation)
      for all Level 3 investments still held as of 12-31-09		  
$
––
 
$
––
 

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

(B)Rate shown is the yield to maturity at December 31, 2009.











SCHEDULE OF INVESTMENTS
Ivy Money Market Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



CORPORATE OBLIGATIONS
Principal
Value
Commercial Paper (A)
 
 
 
 
 
Corporacion Andina de Fomento:
 
 
 
 
 
      1.370%, 2-12-10
$
6,300
 
$
6,290
      1.140%, 4-13-10
 
3,000
 
 
2,990
      1.090%, 10-5-10
 
2,800
 
 
2,777
      1.110%, 10-15-10
 
2,700
 
 
2,676
 
 
 
 
 
 
Total Commercial Paper - 5.14%
14,733

Commercial Paper (backed by irrevocable
      bank letter of credit) (A)
 
 
 
 
 
Baystate Health, Inc. (Bank of America, N.A.),
 
 
 
 
 
      0.200%, 1-6-10
 
2,701
 
 
2,701
COFCO Capital Corp. (Rabobank Nederland):
 
 
 
 
 
      0.300%, 1-7-10
 
5,557
 
 
5,557
      0.330%, 1-14-10
 
4,846
 
 
4,845
River Fuel Company #2, Inc. (Bank of New York (The)),
 
 
 
 
 
      0.220%, 1-29-10
 
8,934
 
 
8,932
River Fuel Funding Company #3, Inc. (Bank of New York (The)),
 
 
 
      0.290%, 1-29-10
 
101
 
 
101
River Fuel Trust #1 (Bank of New York (The)):
 
 
 
 
 
      0.230%, 1-15-10
 
4,214
 
 
4,214
      0.250%, 3-15-10
 
1,000
 
 
999
 
 
 
 
 
 
Total Commercial Paper (backed by irrevocable
      bank letter of credit) - 9.53%
 
 
 
 
27,349

Master Note - 0.13%
 
 
 
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (B)
 
377
 
 
377
 
 
 
 
 
 
Notes
 
 
 
 
 
3M Company,
 
 
 
 
 
      5.610%, 12-12-10
 
10,000
 
 
10,495
American Honda Finance Corp.:
 
 
 
 
 
      0.631%, 1-29-10 (C)
 
5,000
 
 
4,989
      0.678%, 2-5-10 (C)
 
2,100
 
 
2,095
      1.773%, 2-16-10 (B)
 
1,000
 
 
1,000
Bank of America Corporation,
 
 
 
 
 
      4.500%, 8-1-10
 
4,000
 
 
4,073
Bank of America Corporation (Federal Deposit Insurance
      Corporation),
 
 
 
 
 
      0.284%, 3-15-10 (B)(D)
 
16,250
 
 
16,250
Bank of America, N.A.:
 
 
 
 
 
      0.657%, 1-22-10 (B)
 
4,900
 
 
4,900
      0.873%, 2-12-10 (B)
 
3,000
 
 
2,988
Bear Stearns Companies Inc. (The) (JPMorgan Chase & Co.),
 
 
 
 
 
      0.391%, 2-18-10 (B)
 
2,150
 
 
2,149
BellSouth Corporation (AT&T Inc.),
 
 
 
 
 
      4.950%, 4-26-10 (C)
 
8,400
 
 
8,467
BP Capital Markets p.l.c.,
 
 
 
 
 
      0.385%, 3-11-10 (B)
 
1,500
 
 
1,500
Citibank, N.A. (Federal Deposit Insurance Corporation),
 
 
 
 
 
      0.301%, 3-30-10 (B)(D)
 
7,800
 
 
7,800
Citigroup Funding Inc.:
 
 
 
 
 
      1.325%, 2-8-10 (B)
 
2,000
 
 
1,997
      0.423%, 2-13-10 (B)
 
1,530
 
 
1,526
      0.421%, 2-18-10 (B)
 
1,500
 
 
1,498
Citigroup Funding Inc. (Federal Deposit Insurance
      Corporation),
 
 
 
 
 
      0.381%, 1-29-10 (B)(D)
 
3,500
 
 
3,500
Citigroup Inc.:
 
 
 
 
 
      4.625%, 8-3-10
 
6,115
 
 
6,222
      6.500%, 1-18-11
 
2,680
 
 
2,803
Countrywide Financial Corporation,
 
 
 
 
 
      4.500%, 6-15-10
 
2,500
 
 
2,537
IBM International Group Capital LLC (International
      Business Machines Corporation),
 
 
 
 
 
      0.496%, 2-26-10 (B)
 
1,500
 
 
1,500
John Deere Capital Corporation:
 
 
 
 
 
      4.125%, 1-15-10
 
1,600
 
 
1,601
      0.706%, 2-26-10 (C)
 
1,500
 
 
1,499
JPMorgan Chase & Co.,
 
 
 
 
 
      0.331%, 3-25-10 (B)
 
1,400
 
 
1,398
Praxair Inc.,
 
 
 
 
 
      0.346%, 2-26-10 (B)
 
2,000
 
 
2,000
Procter & Gamble Company (The),
 
 
 
 
 
      0.285%, 2-8-10 (B)
 
1,500
 
 
1,500
Procter & Gamble International Funding S.C.A.
      (Procter & Gamble Company (The)),
 
 
 
 
 
      0.525%, 2-8-10 (C)
 
750
 
 
750
Rabobank Nederland,
 
 
 
 
 
      0.273%, 2-16-10 (B)
 
1,500
 
 
1,500
Roche Holdings, Inc.,
 
 
 
 
 
      1.262%, 2-25-10 (C)
 
10,200
 
 
10,202
Royal Bank of Scotland PLC (The),
 
 
 
 
 
      0.981%, 1-28-10 (B)
 
9,000
 
 
9,000
Toyota Motor Credit Corporation,
 
 
 
 
 
      1.304%, 1-15-10 (C)
 
3,000
 
 
3,000
Wells Fargo & Company,
 
 
 
 
 
      4.200%, 1-15-10
 
1,000
 
 
1,001
 
 
 
 
 
 
Total Notes - 42.44%
121,740

Notes (backed by irrevocable bank letter of credit)
 
 
 
 
 
Conestoga Wood Specialties Corporation, Variable/Fixed
      Rate Taxable Demand Revenue Bonds, Series 2000
      (Wachovia Bank, N.A.),
 
 
 
 
 
      0.290%, 1-7-10 (B)
 
1,935
 
 
1,935
Industrial Development Corporation of the Port of Bellingham,
      Environmental Facilities Industrial Revenue Bonds
      (BP West Coast Products LLC Project), Series 2009
      (BP p.l.c.) (Wachovia Bank, N.A.),
 
 
 
 
 
      0.230%, 2-1-10
 
1,000
 
 
1,000
The Academy of the New Church, Taxable Variable Rate
      Demand Bonds, Series 2008 (Wachovia Bank, N.A.),
 
 
 
 
 
      0.240%, 1-7-10 (B)
 
3,000
 
 
3,000
Trap Rock Industries, Inc., Taxable Variable Demand Bonds,
      Series 2005 (Wachovia Bank, N.A.),
 
 
 
 
 
      0.240%, 1-7-10 (B)
 
1,810
 
 
1,810
 
 
 
 
 
 
Total Notes (backed by irrevocable bank letter of credit) - 2.70%
 
7,745

TOTAL CORPORATE OBLIGATIONS - 59.94%
$
171,944
(Cost: $171,944)
 
 
 
 
 

MUNICIPAL OBLIGATIONS
 
 
 
 
 
California - 1.64%
 
 
 
 
 
California Pollution Control Financing Authority,
      Environmental Improvement Revenue Bonds (Atlantic
      Richfield Company Project), Series 1997A (BP p.l.c.),
 
 
 
 
 
      0.240%, 3-1-10
 
1,500
 
 
1,500
City of Los Angeles, Wastewater System Subordinate
      Revenue Bonds, Variable Rate Refunding, Series 2008-G
      (Bank of America, N.A.),
 
 
 
 
 
      0.190%, 1-4-10 (B)
 
3,200
 
 
3,200
 
 
 
 
 
4,700
Colorado - 1.06%
 
 
 
 
 
Colorado Health Facilities Authority, Variable Rate Revenue
      Bonds (Exempla, Inc.), Series 2009A (U.S. Bank N.A.),
 
 
 
 
 
      0.200%, 1-6-10 (B)
 
750
 
 
750
The Town of Castle Rock, Colorado, Certificates of
      Participation, Series 2008 (Wells Fargo Bank, N.A.),
 
 
 
 
 
      0.250%, 1-4-10 (B)
 
2,300
 
 
2,300
 
 
 
 
 
3,050
Georgia - 5.77%
 
 
 
 
 
Development Authority of Richmond County, Variable Rate
      Demand Revenue Bonds (Family Y Project), Series 2004
      (Bank of America N.A.),
 
 
 
 
 
      0.250%, 1-7-10 (B)
 
3,265
 
 
3,265
Municipal Electric Authority of Georgia (MEAG):
 
 
 
 
 
      0.470%, 1-6-10
 
9,773
 
 
9,773
      0.680%, 2-4-10
 
3,500
 
 
3,500
 
 
 
 
 
16,538
Illinois - 7.71%
 
 
 
 
 
City of Chicago, General Obligation Tender Notes,
      Taxable Series 2009 (U.S. Bank N.A.),
 
 
 
 
 
      1.340%, 7-8-10
 
6,500
 
 
6,501
Illinois Finance Authority, Variable Rate Demand Revenue
      Bonds, Series 2009 (The Carle Foundation)
      (JPMorgan Chase Bank, N.A.),
 
 
 
 
 
      0.200%, 1-4-10 (B)
 
700
 
 
700
State of Illinois, General Obligation Certificates of August, 2009,
 
 
 
 
 
      2.000%, 6-10-10
 
11,750
 
 
11,797
State of Illinois, General Obligation Certificates of May, 2009,
 
 
 
 
 
      4.000%, 4-26-10
 
3,100
 
 
3,127
 
 
 
 
 
22,125
Indiana - 2.93%
 
 
 
 
 
City of Whiting, Indiana, Environmental Facilities Revenue
      Bonds (BP Products North America Inc. Project),
      Series 2005 (BP p.l.c.),
 
 
 
 
 
      0.230%, 1-4-10 (B)
 
1,900
 
 
1,900
City of Whiting, Indiana, Environmental Facilities Revenue
      Bonds (BP Products North America Inc. Project),
      Series 2009 (BP p.l.c.),
 
 
 
 
 
      0.230%, 2-1-10
 
1,000
 
 
1,000
City of Whiting, Indiana, Environmental Facilities Revenue
      Refunding Bonds (BP Products North America Inc.
      Project), Series 2002C (BP p.l.c.),
 
 
 
 
 
      0.230%, 1-4-10 (B)
 
500
 
 
500
Indiana Finance Authority, Health System Revenue Bonds,
      Series 2009H (Sisters of St. Francis Health Services, Inc.
      Obligated Group) (JPMorgan Chase Bank),
 
 
 
 
 
      0.220%, 1-6-10 (B)
 
5,000
 
 
5,000
 
 
 
 
 
8,400
Louisiana - 4.36%
 
 
 
 
 
Louisiana Public Facilities Authority, Revenue Bonds
      (Air Products and Chemicals Project), Series 2009A
      (The Bank of New York Mellon Trust Company, N.A.),
 
 
 
 
 
      0.290%, 1-6-10 (B)
 
7,000
 
 
7,000
Louisiana Public Facilities Authority, Variable Rate Revenue
      Refunding Bonds, Series 2009B-1 (The Bank of New York
      Mellon Trust Company, N.A.),
 
 
 
 
 
      0.170%, 1-6-10 (B)
 
2,000
 
 
2,000
Parish of St. Bernard, State of Louisiana, Exempt Facility
      Revenue Bonds (Mobil Oil Corporation Project),
      Series 1996 (Exxon Mobil Corporation),
 
 
 
 
 
      0.200%, 1-4-10 (B)
 
3,500
 
 
3,500
 
 
 
 
 
12,500
Maryland - 0.71%
 
 
 
 
 
Maryland Health and Higher Educational Facilities Authority,
      Revenue Bonds, Anne Arundel Health Systems Issue,
      Series 2009A (Wachovia Bank, N.A.),
 
 
 
 
 
      0.240%, 1-6-10 (B)
 
2,045
 
 
2,045
 
 
 
 
 
 
Mississippi - 1.72%
 
 
 
 
 
Mississippi Business Finance Corporation, Adjustable Mode
      Industrial Development Revenue Bonds (Belk, Inc. Project),
      Series 2005 (Wachovia Bank, N.A.),
 
 
 
      0.240%, 1-7-10 (B)
 
4,925
 
 
4,925
 
 
 
 
 
 
Missouri - 0.35%
 
 
 
 
 
City of Kansas City, Missouri, Variable Rate Demand
      Taxable Special Obligation Refunding Bonds
      (President Hotel Redevelopment Project), Series 2009B
      (JPMorgan Chase & Co.),
 
 
 
 
 
      0.280%, 1-6-10 (B)
 
1,000
 
 
1,000
 
 
 
 
 
 
New York - 3.03%
 
 
 
 
 
New York State Housing Finance Agency,
      Archstone Westbury Housing Revenue Bonds,
      Series A (Bank of America, N.A.),
 
 
 
 
 
      0.270%, 1-4-10 (B)
 
6,700
 
 
6,700
New York State Housing Finance Agency, Related-Caroline
      Apartments Housing Revenue Bonds, 2008 Series A
      (Federal Home Loan Mortgage Corporation),
 
 
 
 
 
      0.300%, 1-1-10 (B)
 
2,000
 
 
2,000
 
 
 
 
 
8,700
Ohio - 0.77%
 
 
 
 
 
County of Lucas, Ohio, Taxable Arena Improvement Notes,
      Series 2009, General Obligation Bond, Anticipation Notes,
 
 
 
 
 
      1.750%, 7-22-10
 
2,200
 
 
2,203
 
 
 
 
 
 
Tennessee - 0.52%
 
 
 
 
 
The Public Building Authority of the County of Montgomery,
      Tennessee, Adjustable Rate Pooled Financing, Revenue
      Bonds, Series 2008 (Tennessee County Loan Pool)
      (Bank of America, N.A.),
 
 
 
 
 
      0.260%, 1-1-10 (B)
 
1,500
 
 
1,500
 
 
 
 
 
 
Texas - 1.74%
 
 
 
 
 
Port Arthur Navigation District Industrial Development
      Corporation, Exempt Facilities Revenue Bonds
      (Air Products Project), Series 2005 (Air Products
      and Chemicals, Inc.),
 
 
 
 
 
      0.250%, 1-4-10 (B)
 
3,000
 
 
3,000
West Side Calhoun County Navigation District (Texas),
      Sewage and Solid Waste Disposal Revenue Bonds
      (BP Chemicals Inc. Project) Series 1996 (British
      Petroleum Company p.l.c. (The)),
 
 
 
 
 
      0.230%, 1-4-10 (B)
 
2,000
 
 
2,000
 
 
 
 
 
5,000
Virginia - 0.70%
 
 
 
 
 
Peninsula Ports Authority of Virginia, Coal Terminal
      Revenue Refunding Bonds (Dominion Terminal
      Associates Project), Series 1987-A (U.S. Bank, N.A.),
 
 
 
 
 
      0.220%, 1-6-10
 
2,000
 
 
2,000
 
 
 
 
 
 
Washington - 0.94%
 
 
 
 
 
Industrial Development Corporation of the Port of Bellingham
      (Washington), Environmental Facilities Industrial Revenue
      Bonds (BP West Coast Products LLC Project), Series 2003
      (BP p.l.c.),
 
 
 
 
 
      0.230%, 1-4-10 (B)
 
2,700
 
 
2,700
 
 
 
 
 
 
Wisconsin - 2.88%
 
 
 
 
 
City of Ladysmith, Wisconsin, Variable Rate Demand,
      Industrial Development Revenue Bonds, Series 2009A
      (Wells Fargo Bank, National Association),
 
 
 
 
 
      0.290%, 1-7-10 (B)
 
3,500
 
 
3,500
Wisconsin Health and Educational Facilities Authority
      Variable Rate, Demand Revenue Bonds, Series 1998B
      (Wausau Hospital, Inc.) (JPMorgan Chase Bank, N.A.),
 
 
 
 
 
      0.250%, 1-4-10 (B)
 
770
 
 
770
Wisconsin Health and Educational Facilities Authority,
      Revenue Bonds, Series 2008-A (U.S. Bank N.A.),
 
 
 
 
 
      0.600%, 12-2-10
 
4,000
 
 
4,000
 
 
 
 
 
8,270

TOTAL MUNICIPAL OBLIGATIONS - 36.83%  
$
105,656
(Cost: $105,656)
 
 
 
 
 

UNITED STATES GOVERNMENT AND
      GOVERNMENT AGENCY OBLIGATIONS
United States Government Agency Obligations
 
 
 
 
 
Overseas Private Investment Corporation:
 
 
 
 
 
      0.160%, 1-6-10 (B)
 
2,000
 
 
2,000
      0.160%, 1-6-10 (B)
 
2,000
 
 
2,000
      0.160%, 1-6-10 (B)
 
1,302
 
 
1,302
      0.160%, 1-6-10 (B)
 
1,200
 
 
1,200
Totem Ocean Trailer Express, Inc. (United States Government
      Guaranteed Ship Financing Obligations),
 
 
 
      0.504%, 1-15-10 (B)
 
2,048
 
 
2,048
 
 
 
 
 
 
TOTAL UNITED STATES GOVERNMENT AND
      GOVERNMENT AGENCY OBLIGATIONS - 2.98%
$
8,550
(Cost: $8,550)
 
 

TOTAL INVESTMENT SECURITIES - 99.75%
$
286,150
(Cost: $286,150)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.25%
 
 
712

NET ASSETS - 100.00%
 
 
 
$
286,862

Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Corporate Obligations
$   ––
$
171,944
$   ––
      Municipal Obligations
––
105,656
––
      United States Government Agency Obligations
––
8,550
––
           Total Investments in Securities
$   ––
$
286,150
$   ––

(A)Rate shown is the yield to maturity at December 31, 2009.

(B)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.

(C)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009.

(D)Security is fully guaranteed by the Federal Deposit Insurance Corporation for both interest and principal under the Debt Guarantee Program of the Temporary Liquidity Guarantee Program. The guarantee expires at the earlier of the security's maturity date or December 31, 2012.











SCHEDULE OF INVESTMENTS
Ivy Municipal Bond Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



MUNICIPAL BONDS
Principal
Value
Alabama - 3.14%
 
 
 
 
 
The Special Care Facilities Financing Authority of the City of
      Birmingham - Children's Hospital, Health Care Facility
      Revenue Bonds, Children's Hospital Series 2009,
 
 
 
 
 
      6.000%, 6-1-39
$
750
 
$
789
The Water Works Board of the City of Birmingham (Alabama),
      Water Revenue Bonds, Series 2009-A,
 
 
 
 
 
      5.125%, 1-1-34
 
750
 
 
780
The Public Education Building Authority of the City of Tuscaloosa,
      Student Housing Revenue Bonds (Ridgecrest Student Housing,
      LLC University of Alabama Ridgecrest Residential Project),
      Series 2008,
 
 
 
 
 
      6.750%, 7-1-33
 
500
 
 
571
 
 
 
 
 
2,140
Arizona - 2.12%
 
 
 
 
 
Arizona Health Facilities Authority, Hospital Revenue Bonds
      (Phoenix Children's Hospital), Series 2007C,
 
 
 
 
 
      1.250%, 2-1-42 (A)
 
125
 
 
112
City of Bullhead City, Arizona, Bullhead Parkway Improvement
      District, Improvement Bonds,
 
 
 
 
 
      6.100%, 1-1-13
 
220
 
 
222
Rio Nuevo Multipurpose Facilities District (City of Tucson, Arizona)
      Subordinate Lien Excise Tax Revenue Bonds, Series 2008,
 
 
 
 
 
      6.625%, 7-15-25
 
500
 
 
580
University Medical Center Corporation (Tucson, Arizona),
      Hospital Revenue Bonds, Series 2009,
 
 
 
 
 
      6.500%, 7-1-39
 
500
 
 
529
 
 
 
 
 
1,443
California - 11.87%
 
 
 
 
 
California Health Facilities Financing Authority, Revenue Bonds
      (Adventist Health System/West), Series 2009A,
 
 
 
 
 
      5.750%, 9-1-39
 
500
 
 
502
California Municipal Finance Authority,
 
 
 
 
 
      5.500%, 2-1-39
 
460
 
 
412
California Pollution Control Financing Authority, Solid Waste
      Disposal Revenue Bonds (Republic Services, Inc. Project)
      Series 2002B,
 
 
 
 
 
      5.250%, 6-1-23
 
415
 
 
418
State of California, Various Purpose General Obligation Bonds:
 
 
 
 
 
      5.000%, 2-1-22
 
495
 
 
498
      6.500%, 4-1-33
1,000
 
 
1,077
      6.000%, 11-1-39
 
500
 
 
512
State of California Various Purpose General Obligation Bonds,
 
 
 
 
 
      5.250%, 10-1-29
 
500
 
 
490
Trustees of the California State University Systemwide Revenue
      Bonds, Series 2002A,
 
 
 
 
 
      5.500%, 11-1-15
 
250
 
 
275
California Statewide Communities Development Authority,
      Insured Revenue Bonds (Henry Mayo Newhall Memorial
      Hospital), Series 2007A,
 
 
 
 
 
      5.000%, 10-1-37
 
500
 
 
427
Golden State Tobacco Securitization Corporation, Tobacco
      Settlement Asset-Backed Bonds, Series 2003A-1,
 
 
 
 
 
      6.750%, 6-1-39
 
200
 
 
235
Golden State Tobacco Securitization Corporation, Enhanced
      Tobacco Settlement Asset-Backed Bonds, Series 2003B,
 
 
 
 
 
      5.000%, 6-1-43
1,000
 
 
1,116
Los Angeles Unified School District (County of Los Angeles,
      California), General Obligation Bonds, Election of 2005,
      Series F (2009),
 
 
 
 
 
      5.000%, 1-1-34
 
500
 
 
502
Certificates of Participation, Evidencing Proportionate Interests
      of the Holders Thereof in Installment Payments to be Paid
      by Palomar Pomerado Health, San Diego County, California,
 
 
 
 
 
      6.750%, 11-1-39
 
250
 
 
249
Riverside Community College District, Riverside County, California,
      Election of 2004, General Obligation Bonds, Series 2004A,
 
 
 
 
 
      5.500%, 8-1-29
 
200
 
 
236
County of Sacramento, Airport System Subordinate and
      PFC/Grant Revenue Bonds, Series 2009,
 
 
 
 
 
      5.125%, 7-1-25
 
500
 
 
522
Southern California Public Power Authority, Transmission Project
      Revenue Bonds, 2008 Subordinate Series B (Southern
      Transmission Project),
 
 
 
 
 
      6.000%, 7-1-27
 
500
 
 
568
Upland Unified School District (San Bernardino County, California),
      Election of 2008 General Obligation Bonds, Series A,
 
 
 
 
 
      0.000%, 8-1-31 (B)
 
150
 
 
44
 
 
 
 
 
8,083
Colorado - 3.10%
 
 
 
 
 
Joint School District No. 28J, Adams and Arapahoe Counties,
      Colorado, General Obligation Bonds, Series 2008,
 
 
 
 
 
      6.000%, 12-1-28
 
500
 
 
573
Certificates of Participation, Series 2008, Adams 12 Five Star
      Schools, Adams County and City and County of Broomfield,
      Colorado,
 
 
 
 
 
      5.000%, 12-1-25
 
500
 
 
534
Colorado Housing and Finance Authority, Single Family Mortgage
      Class I Bonds, 2009 Series A,
 
 
 
 
 
      5.500%, 11-1-29
 
500
 
 
522
Lincoln Park Metropolitan District, Douglas County, Colorado,
      General Obligation Refunding and Improvement Bonds,
      Series 2008,
 
 
 
 
 
      6.125%, 12-1-30
 
500
 
 
484
 
 
 
 
 
2,113
Connecticut - 0.59%
 
 
 
 
 
Capital City Economic Development Authority, Parking and
      Energy Fee Revenue Bonds, 2008 Series D,
 
 
 
 
 
      5.000%, 6-15-22
 
370
 
 
403
 
 
 
 
 
 
District Of Columbia - 2.92%
 
 
 
 
 
District of Columbia, Hospital Revenue Bonds (Sibley Memorial
      Hospital Issue), Series 2009,
 
 
 
 
 
      6.375%, 10-1-39
 
500
 
 
524
District of Columbia (Washington, D.C.), General Obligation
      Refunding Bonds, Series 2008F,
 
 
 
 
 
      5.000%, 6-1-19
1,000
 
 
1,115
Metropolitan Washington Airports Authority, Dulles Toll Road,
      Second Senior Lien, Revenue Bonds, Series 2009C,
 
 
 
 
 
      0.000%, 10-1-41 (B)
 
500
 
 
349
 
 
 
 
 
1,988
Florida - 7.38%
 
 
 
 
 
Brevard County, Florida, Industrial Development Revenue Bonds
      (TUFF Florida Tech Project), Series 2009,
 
 
 
 
 
      6.750%, 11-1-39
 
500
 
 
496
Brevard County Health Facilities Authority, Health Facilities
      Revenue Bonds, Series 2009B (Health First, Inc. Project),
 
 
 
 
 
      7.000%, 4-1-39
 
500
 
 
549
Hillsborough County Industrial Development Authority, Industrial
      Development Revenue Bonds, Health Facilities Projects,
      Series 2008A (University Community Hospital),
 
 
 
 
 
      5.625%, 8-15-29
 
390
 
 
320
Hillsborough County Industrial Development Authority, Industrial
      Development Revenue Bonds, Health Facilities Projects,
      Series 2008B (University Community Hospital),
 
 
 
 
 
      8.000%, 8-15-32
 
600
 
 
657
City of Jacksonville, Florida, Better Jacksonville Sales Tax Revenue
      Bonds, Series 2003,
 
 
 
 
 
      5.250%, 10-1-19
 
250
 
 
261
Miami-Dade County, Florida, General Obligation Bonds
      (Building Better Communities Program), Series 2008B,
 
 
 
 
 
      6.250%, 7-1-26
 
500
 
 
568
Miami-Dade County, Florida, Miami International Airport
      (Hub of the AmericasSM), Aviation Revenue Bonds,
      Series 2009A,
 
 
 
 
 
      5.500%, 10-1-36
 
500
 
 
508
Miami-Dade County, Florida, Water and Sewer System Revenue
      Refunding Bonds, Series 2008B,
 
 
 
 
 
      5.250%, 10-1-22
 
500
 
 
546
Miami-Dade County, Florida, Water and Sewer System Revenue
      Refunding Bonds, Series 2008C,
 
 
 
 
 
      5.000%, 10-1-17
 
500
 
 
565
City of Port St. Lucie, Florida, Special Assessment Refunding
      Bonds, Series 2008A (City Center Special Assessment District),
 
 
 
 
 
      5.750%, 7-1-20
 
500
 
 
556
 
 
 
 
 
5,026
Georgia - 1.58%
 
 
 
 
 
City of Atlanta, Georgia, Water and Wastewater Revenue Bonds,
      Series 2009B,
 
 
 
 
 
      5.375%, 11-1-39
 
500
 
 
511
Municipal Electric Authority of Georgia, Project One Subordinated
      Bonds, Series 2008D,
 
 
 
 
 
      5.750%, 1-1-20
 
500
 
 
564
 
 
 
 
 
1,075
Illinois - 2.56%
 
 
 
 
 
City of Belleville, Illinois, Tax Increment Refunding Revenue
      Bonds (Frank Scott Parkway Redevelopment Project),
      Series 2007A:
 
 
 
 
 
      5.000%, 5-1-26
 
240
 
 
195
      5.700%, 5-1-36
 
250
 
 
207
City of Chicago, General Obligation Bonds, Project and Refunding,
      Series 2004A,
 
 
 
 
 
      5.250%, 1-1-21
 
250
 
 
267
Illinois Finance Authority, Revenue and Refunding Bonds,
      Series 2009 (Roosevelt University Project),
 
 
 
 
 
      6.500%, 4-1-39
 
500
 
 
501
Illinois Finance Authority, Revenue Bonds, The University of
      Chicago, Series 2008B,
 
 
 
 
 
      5.500%, 7-1-19
 
500
 
 
572
 
 
 
 
 
1,742
Indiana - 4.96%
 
 
 
 
 
Ball State University Board of Trustees, Ball State University
      Student Fee Bonds, Series K,
 
 
 
 
 
      5.750%, 7-1-18
 
500
 
 
550
East Chicago Elementary School Building Corporation
      (Lake County, Indiana), First Mortgage Bonds, Series 1993A,
 
 
 
 
 
      5.500%, 1-15-16
 
255
 
 
255
City of Hammond (Indiana), Redevelopment District Revenue Bonds,
      Series 2008 (Marina Area Project),
 
 
 
 
 
      6.000%, 1-15-17
 
500
 
 
507
Indiana Health and Educational Facility Financing Authority,
      Hospital Revenue Bonds, Series 2007 (Community Foundation
      of Northwest Indiana Obligated Group),
 
 
 
 
 
      5.500%, 3-1-37
 
250
 
 
235
Indiana Finance Authority, Facilities Revenue Refunding Bonds,
      Series 2008C (Miami Correctional Facility-Phase II),
 
 
 
 
 
      5.000%, 7-1-17
 
500
 
 
547
Mt. Vernon School Building Corporation of Hancock County,
      Hancock County, Indiana, First Mortgage Bonds, Series 2007,
 
 
 
 
 
      5.250%, 1-15-32
 
500
 
 
526
New Albany-Floyd County School Building Corporation,
      First Mortgage Bonds, Series 2002 (Floyd County, Indiana),
 
 
 
 
 
      5.750%, 7-15-17
 
675
 
 
756
 
 
 
 
 
3,376
Iowa - 1.52%
 
 
 
 
 
City of Altoona, Iowa, Annual Appropriation Urban Renewal Tax
      Increment Revenue Bonds, Series 2008,
 
 
 
 
 
      6.000%, 6-1-34
1,000
 
 
1,038
 
 
 
 
 
 
Kansas - 1.11%
 
 
 
 
 
Arkansas City, Kansas Public Building Commission, Revenue Bonds,
      Series 2009 (South Central Kansas Regional Medical Center),
 
 
 
 
 
      7.000%, 9-1-38
 
500
 
 
522
Sedgwick County, Kansas and Shawnee County, Kansas,
      Single Family Mortgage Revenue Bonds (Mortgage-Backed
      Securities Program), 2001 Series A-1,
 
 
 
 
 
      6.300%, 12-1-32
 
100
 
 
104
Sedgwick County, Kansas and Shawnee County, Kansas,
      Single Family Mortgage Revenue Bonds (Mortgage-Backed
      Securities Program), 2003 Series A-2,
 
 
 
 
 
      5.650%, 6-1-35
 
125
 
 
128
 
 
 
 
 
754
Kentucky - 2.13%
 
 
 
 
 
Commonwealth of Kentucky, State Property and Buildings
      Commission, Revenue and Revenue Refunding Bonds,
      Project No. 90,
 
 
 
 
 
      5.750%, 11-1-19
 
500
 
 
580
The Turnpike Authority of Kentucky, Economic Development
      Road Revenue Bonds (Revitalization Projects), 2008 Series A,
 
 
 
 
 
      5.000%, 7-1-16
 
330
 
 
369
Louisville Regional Airport Authority, Airport System Revenue
      Bonds, 2008 Series A,
 
 
 
 
 
      5.250%, 7-1-28
 
500
 
 
501
 
 
 
 
 
1,450
Louisiana - 0.81%
 
 
 
 
 
New Orleans Aviation Board, Revenue Refunding Bonds
      (Restructuring GARBs), Series 2009 A-1,
 
 
 
 
 
      6.000%, 1-1-23
 
500
 
 
553
 
 
 
 
 
 
Maryland - 1.46%
 
 
 
 
 
Maryland Economic Development Corporation, Pollution Control
      Revenue Refunding Bonds (Potomac Electric Project),
      2006 Series,
 
 
 
 
 
      6.200%, 9-1-22
 
500
 
 
571
Maryland Transportation Authority, Airport Parking Revenue
      Bonds, Series 2002B, Baltimore/Washington International
      Airport Projects (Qualified Airport Bonds),
 
 
 
 
 
      5.375%, 3-1-15
 
405
 
 
421
 
 
 
 
 
992
Massachusetts - 1.49%
 
 
 
 
 
Massachusetts Educational Financing Authority, Education Loan
      Revenue Bonds, Issue H, Series 2008,
 
 
 
 
 
      6.125%, 1-1-22
 
395
 
 
395
Massachusetts Educational Financing Authority, Education Loan
      Revenue Bonds, Issue I, Series 2009,
 
 
 
 
 
      6.000%, 1-1-28
 
415
 
 
445
Massachusetts Development Finance Agency, Revenue Bonds
      (Linden Ponds, Inc. Facility), Series 2007 A,
 
 
 
 
 
      5.750%, 11-15-42
 
250
 
 
177
 
 
 
 
 
1,017
Michigan - 2.57%
 
 
 
 
 
City of Detroit, Michigan, General Obligation Bonds
      (Unlimited Tax), Series 2004-A(1),
 
 
 
 
 
      5.250%, 4-1-23
 
200
 
 
158
Garden City Hospital Finance Authority, Hospital Revenue and
      Refunding Bonds (Garden City Hospital Obligated Group),
      Series 1998A,
 
 
 
 
 
      5.625%, 9-1-10
 
5
 
 
5
City of Kalamazoo, Hospital Finance Authority, Hospital Revenue
      Refunding Bonds, (Bronson Methodist Hospital), Series 2003A,
 
 
 
 
 
      5.000%, 5-15-26
 
500
 
 
501
State Building Authority, State of Michigan, 2008 Revenue and
      Revenue Refunding Bonds, Series I (Facilities Program),
 
 
 
 
 
      5.000%, 10-15-18
 
305
 
 
325
State Building Authority, State of Michigan, 2006 Revenue
      Refunding Bonds, Series IA (Facilities Program),
 
 
 
 
 
      0.000%, 10-15-22 (B)
1,000
 
 
523
Michigan State Hospital Finance Authority, Hospital Revenue
      and Refunding Bonds (Henry Ford Health System) Series 2009,
 
 
 
 
 
      5.750%, 11-15-39
 
250
 
 
241
 
 
 
 
 
1,753
Minnesota - 1.27%
 
 
 
 
 
City of Perham, Minnesota, General Obligation Disposal System
      Revenue Bonds, Series 2001,
 
 
 
 
 
      6.000%, 5-1-22
 
500
 
 
501
City of Victoria, Minnesota, Private School Facility Revenue Bonds
      (Holy Family Catholic High School Project), Series 1999A,
 
 
 
 
 
      5.600%, 9-1-19
 
400
 
 
364
 
 
 
 
 
865
Mississippi - 1.18%
 
 
 
 
 
The University of Southern Mississippi, S.M. Educational Building
      Corporation, Revenue Bonds, Series 2009 (Campus Facilities
      Improvements Project),
 
 
 
 
 
      5.375%, 9-1-36
 
750
 
 
805
 
 
 
 
 
 
Missouri - 5.90%
 
 
 
 
 
City of Belton, Missouri, Tax Increment Revenue Bonds
      (Belton Town Centre Project), Series 2004,
 
 
 
 
 
      6.250%, 3-1-24
 
200
 
 
176
Broadway-Fairview Transportation Development District
      (Columbia, Missouri), Transportation Sales Tax Revenue Bonds,
      Series 2006A,
 
 
 
 
 
      6.125%, 12-1-36
 
175
 
 
112
Grindstone Plaza Transportation Development District (Columbia,
      Missouri), Transportation Sales Tax Revenue Bonds,
      Series 2006A,
 
 
 
 
 
      5.550%, 10-1-36
 
250
 
 
167
The Industrial Development Authority of the County of Grundy,
      Missouri, Health Facilities Revenue Bonds (Wright Memorial
      Hospital), Series 2009,
 
 
 
 
 
      6.750%, 9-1-34
 
100
 
 
99
The Industrial Development Authority of the City of Kansas City,
      Missouri, Revenue Bonds, Series 2004 (Plaza Library Project),
 
 
 
 
 
      5.900%, 3-1-24
 
200
 
 
200
City of Kearney, Missouri, General Obligation Bonds, Series 2001,
 
 
 
 
 
      5.500%, 3-1-16
 
350
 
 
368
Public Water Supply District No. 1 of Lincoln County, Missouri,
      Certificates of Participation, Series 2009,
 
 
 
 
 
      6.750%, 6-15-35
 
500
 
 
511
Health and Educational Facilities Authority of the State of Missouri,
      Health Facilities Revenue Bonds (The Children's Mercy
      Hospital), Series 2009,
 
 
 
 
 
      5.625%, 5-15-39
 
500
 
 
501
Missouri Development Finance Board, Infrastructure Facilities
      Revenue Bonds (City of Branson, Missouri) (Branson Landing
      Project), Series 2004A,
 
 
 
 
 
      5.250%, 12-1-19
 
65
 
 
66
Missouri Development Finance Board, Infrastructure Facilities
      Revenue Bonds (City of Independence, Missouri - Events
      Center Project), Series 2009A,
 
 
 
 
 
      6.625%, 4-1-33
 
500
 
 
528
Missouri Housing Development Commission, Single Family
      Mortgage Revenue Bonds (Homeownership Loan Program),
      2005 Series D,
 
 
 
 
 
      6.000%, 3-1-36
 
130
 
 
134
The Industrial Development Authority of the County of Platte
      County, Missouri, Transportation Revenue Bonds (Zona Rosa
      Phase II Retail Project), Series 2007,
 
 
 
 
 
      6.850%, 4-1-29
 
250
 
 
226
Platte County R-III School District Building Corporation,
      Leasehold Refunding and Improvement Revenue Bonds,
      Series 2008 (Platte County R-III School District of Platte County,
      Missouri Project),
 
 
 
 
 
      5.000%, 3-1-28
 
340
 
 
358
The Industrial Development Authority of St. Joseph, Missouri,
      Special Obligation Revenue Bonds (City of St. Joseph,
      Missouri - Sewerage System Improvements Project),
      Series 2007,
 
 
 
 
 
      4.375%, 4-1-18
 
100
 
 
102
The Industrial Development Authority of the County of St. Louis,
      Missouri, Senior Living Facilities Revenue Bonds
      (Friendship Village of West County), Series 2007A,
 
 
 
 
 
      5.500%, 9-1-28
 
500
 
 
471
 
 
 
 
 
4,019
Nevada - 1.31%
 
 
 
 
 
City of Las Vegas Redevelopment Agency, Nevada, Tax
      Increment Revenue Bonds, Series 2009A,
 
 
 
 
 
      8.000%, 6-15-30
 
500
 
 
578
Overton Power District No. 5 (Nevada), Special Obligation
      Revenue Bonds, (Series 2008),
 
 
 
 
 
      6.500%, 12-1-18
 
290
 
 
316
 
 
 
 
 
894
New Hampshire - 1.16%
 
 
 
 
 
New Hampshire Health and Education Facilities Authority,
      FHA Insured Mortgage Revenue Bonds, LRGHealthcare
      Issue, Series 2009,
 
 
 
 
 
      7.000%, 4-1-38
 
250
 
 
279
New Hampshire Housing Finance Authority, Single Family
      Mortgage Acquisition Revenue Bonds, 2008 Series,
 
 
 
 
 
      6.000%, 7-1-38
 
500
 
 
512
 
 
 
 
 
791
New Jersey - 1.96%
 
 
 
 
 
New Jersey Health Care Facilities Financing Authority, Revenue
      Bonds, Virtua Health Issue, Series 2009A,
 
 
 
 
 
      5.500%, 7-1-38
 
500
 
 
524
New Jersey Economic Development Authority, School Facilities
      Construction Bonds, 2005 Series O,
 
 
 
 
 
      5.125%, 3-1-30
 
250
 
 
256
New Jersey Transportation Trust Fund Authority, Transportation
      System Bonds, 2003 Series B-2,
 
 
 
 
 
      5.000%, 12-15-16
 
500
 
 
557
 
 
 
 
 
1,337
New Mexico - 0.91%
 
 
 
 
 
New Mexico Mortgage Finance Authority, Single Family
      Mortgage Program Class I Bonds, 2006 Series D,
 
 
 
 
 
      6.000%, 1-1-37
 
85
 
 
89
New Mexico Mortgage Finance Authority, Single Family
      Mortgage Program Class I Bonds, 2008 Series D-2,
 
 
 
 
 
      5.250%, 7-1-30
 
500
 
 
528
 
 
 
 
 
617
New York - 2.92%
 
 
 
 
 
New York City Industrial Development Agency, Pilot Revenue
      Bonds, Series 2009A (Yankee Stadium Project):
 
 
 
 
 
      0.000%, 3-1-25 (B)
 
500
 
 
219
      0.000%, 3-1-26 (B)
 
500
 
 
206
      0.000%, 3-1-27 (B)
 
500
 
 
192
The Port Authority of New York and New Jersey, Consolidated
      Bonds, One Hundred Twenty-Seventh Series,
 
 
 
 
 
      5.500%, 12-15-14
 
500
 
 
539
The Port Authority of New York and New Jersey, Consolidated
      Bonds, One Hundred Fifty-Second Series,
 
 
 
 
 
      5.750%, 11-1-30
 
500
 
 
544
Suffolk County Industrial Development Agency (New York),
      Civic Facility Revenue Bonds, Series 1999A (The Southampton
      Hospital Association Civic Facility),
 
 
 
 
 
      7.250%, 1-1-20
 
110
 
 
109
Suffolk County Industrial Development Agency (New York),
      Civic Facility Revenue Bonds, Series 1999B (The Southampton
      Hospital Association Civic Facility),
 
 
 
 
 
      7.625%, 1-1-30
 
180
 
 
178
 
 
 
 
 
1,987
North Carolina - 2.13%
 
 
 
 
 
North Carolina Eastern Municipal Power Agency, Power System
      Revenue Bonds, Series 2008C,
 
 
 
 
 
      6.000%, 1-1-19
 
250
 
 
278
North Carolina Medical Care Commission, Health Care Facilities
      Revenue Refunding Bonds (University Health Systems of
      Eastern Carolina), Series 2008E-2 Bonds,
 
 
 
 
 
      6.000%, 12-1-36
 
500
 
 
545
North Carolina Turnpike Authority, Triangle Expressway System
      Revenue Bonds, Series 2009B,
 
 
 
 
 
      0.000%, 1-1-37 (B)
 
500
 
 
95
Town of Oak Island, North Carolina, Enterprise System Revenue
      Bonds, Series 2009,
 
 
 
 
 
      6.000%, 6-1-34
 
500
 
 
534
 
 
 
 
 
1,452
Ohio - 2.21%
 
 
 
 
 
Hamilton County, Ohio, Sewer System Improvement Revenue
      Bonds, 2005 Series B (The Metropolitan Sewer District of
      Greater Cincinnati),
 
 
 
 
 
      5.000%, 12-1-30
 
150
 
 
156
Ohio Air Quality Development Authority, State of Ohio,
      Air Quality Revenue Bonds (Ohio Power Company Project),
      Series 2008A,
 
 
 
 
 
      7.125%, 6-1-41
 
500
 
 
510
State of Ohio, Major New State Infrastructure Project Revenue
      Bonds, Series 2008-I,
 
 
 
 
 
      6.000%, 6-15-17
 
395
 
 
467
Toledo-Lucas County Port Authority, Development Revenue
      Bonds (Northwest Ohio Bond Fund), Series 2007C
      (Midwest Terminals Project),
 
 
 
 
 
      6.000%, 11-15-27
 
480
 
 
371
 
 
 
 
 
1,504
Oklahoma - 3.59%
 
 
 
 
 
Cleveland County Justice Authority, Sales Tax Revenue Bonds
      (Cleveland County Detention Facility Project) Series 2009B,
 
 
 
 
 
      5.750%, 3-1-29
 
500
 
 
524
Grand River Dam Authority, Revenue Bonds, Series 2008A,
 
 
 
 
 
      5.000%, 6-1-18
 
905
 
 
1,022
The Oklahoma Development Finance Authority, Solid Waste
      Disposal Revenue Bonds (Waste Management of Oklahoma,
      Inc. Project), Series 2004A,
 
 
 
 
 
      7.000%, 12-1-21
 
600
 
 
624
Tulsa Public Facilities Authority (Oklahoma), Assembly Center
      Lease Payment Revenue Bonds, Refunding Series 1985,
 
 
 
 
 
      6.600%, 7-1-14
 
250
 
 
275
 
 
 
 
 
2,445
Oregon - 0.37%
 
 
 
 
 
Hospital Facility Authority of Clackamas County, Oregon,
      Revenue Bonds (Legacy Health System), Series 2009A,
 
 
 
 
 
      5.500%, 7-15-35
 
250
 
 
255
 
 
 
 
 
 
Pennsylvania - 3.12%
 
 
 
 
 
Dauphin County General Authority, Health System Revenue
      Bonds, Series A of 2009 (Pinnacle Health System Project),
 
 
 
 
 
      6.000%, 6-1-36
 
350
 
 
358
Lycoming County Authority, Health System Revenue Bonds,
      Series A of 2009 (Susquehanna Health System Project),
 
 
 
 
 
      5.750%, 7-1-39
 
500
 
 
486
Pennsylvania Turnpike Commission, Turnpike Subordinate
      Revenue Bonds, Series D of 2009,
 
 
 
 
 
      5.500%, 12-1-41
 
250
 
 
259
City of Philadelphia, Pennsylvania, General Obligation Refunding
      Bonds, Series 2008A,
 
 
 
 
 
      5.250%, 12-15-24
 
445
 
 
472
The School District of Philadelphia, Pennsylvania, General
      Obligation Bonds, Series A of 2002, Prerefunded 2-1-12,
 
 
 
 
 
      5.500%, 2-1-18
 
500
 
 
549
 
 
 
 
 
2,124
Rhode Island - 0.76%
 
 
 
 
 
Rhode Island Student Loan Authority, Student Loan Program
      Revenue Bonds, 2009 Senior Series A,
 
 
 
 
 
      6.250%, 12-1-27
 
500
 
 
520
 
 
 
 
 
 
South Carolina - 0.53%
 
 
 
 
 
Tobacco Settlement Revenue Management Authority, 5% Tobacco
      Settlement Asset-Backed Refunding Bonds, Series 2008,
 
 
 
 
 
      5.000%, 6-1-18
 
360
 
 
361
 
 
 
 
 
 
Tennessee - 0.77%
 
 
 
 
 
The Health, Educational and Housing Facility Board of the County
      of Shelby, Tennessee, Revenue Bonds, Series 2008C,
      (Methodist Le Bonheur Healthcare),
 
 
 
 
 
      5.250%, 6-1-18
 
500
 
 
525
 
 
 
 
 
 
Texas - 10.06%
 
 
 
 
 
City of Arlington, Texas, Special Tax Revenue Bonds, Series 2008,
 
 
 
 
 
      5.000%, 8-15-18
 
300
 
 
338
Cass County Industrial Development Corporation (Texas),
      Environmental Improvement, Revenue Refunding Bonds,
      2009 Series A,
 
 
 
 
 
      9.250%, 3-1-24
 
500
 
 
640
City of El Paso, Texas (El Paso County), Water and Sewer
      Revenue Refunding Bonds, Series 2008C,
 
 
 
 
 
      5.000%, 3-1-17
 
500
 
 
563
Harris County Cultural Education Facilities Finance Corporation,
      Medical Facilities Revenue Refunding Bonds (Baylor College
      of Medicine), Series 2008D,
 
 
 
 
 
      5.000%, 11-15-16
 
200
 
 
209
Hopkins County Hospital District (A political subdivision of the
      State of Texas located in Hopkins County), Hospital Revenue
      Bonds, Series 2008,
 
 
 
 
 
      6.000%, 2-15-33
 
500
 
 
455
Howard County, Texas, General Obligation Bonds, Series 2008,
 
 
 
 
 
      4.650%, 2-15-24
 
505
 
 
499
Lower Colorado River Authority, Refunding Revenue Bonds,
      Series 2008A,
 
 
 
 
 
      5.750%, 5-15-23
 
500
 
 
554
North Texas Tollway Authority, System Revenue Refunding Bonds,
      Series 2008, First Tier Current Interest Bonds, Series 2008A,
 
 
 
 
 
      6.000%, 1-1-25
 
500
 
 
533
North Texas Tollway Authority, System Revenue Refunding Bonds,
      Series 2008D,
 
 
 
 
 
      0.000%, 1-1-30 (B)
1,000
 
 
312
Pflugerville Independent School District (Travis County, Texas),
      Unlimited Tax School Building Bonds, Series 2001,
 
 
 
 
 
      5.500%, 8-15-19
 
250
 
 
270
Town of Prosper, Texas (Collin County), Combination Tax and
      Revenue Certificates of Obligation, Series 2008,
 
 
 
 
 
      5.500%, 2-15-20
 
500
 
 
555
Tarrant County Cultural Education Facilities Finance Corporation,
      Retirement Facility Revenue Bonds (Northwest Senior Housing
      Corporation - Edgemere Project), Series 2006A,
 
 
 
 
 
      6.000%, 11-15-36
 
500
 
 
425
Tarrant County Cultural Education Facilities Finance Corporation,
      Retirement Facility Revenue Bonds (Buckingham Senior Living
      Community, Inc. Project), Series 2007,
 
 
 
 
 
      5.625%, 11-15-27
 
250
 
 
230
Texas Private Activity Bond Surface Transportation Corporation,
      Senior Lien Revenue Bonds (NTE Mobility Partners LLC
      North Tarrant Express Managed Lanes Project), Series 2009,
 
 
 
 
 
      6.875%, 12-31-39
 
500
 
 
510
Board of Regents, Texas State University System, Revenue Financing
      System Revenue Bonds, Series 2008,
 
 
 
 
 
      5.250%, 3-15-19
 
355
 
 
403
Trinity River Authority of Texas (Tarrant County Water Project),
      Improvement Revenue Bonds, Series 2008,
 
 
 
 
 
      5.750%, 2-1-26
 
325
 
 
358
 
 
 
 
 
6,854
Vermont - 0.26%
 
 
 
 
 
Vermont Housing Finance Agency, Single Family Housing Bonds,
      Series 27,
 
 
 
 
 
      5.500%, 11-1-37
 
170
 
 
176
 
 
 
 
 
 
Virgin Islands - 0.74%
 
 
 
 
 
Virgin Islands Public Finance Authority, Subordinated Revenue
      Bonds (Virgin Islands Matching Fund Loan Note-Cruzan
      Project), Series 2009A,
 
 
 
 
 
      6.000%, 10-1-39
 
500
 
 
501
 
 
 
 
 
 
Virginia - 2.02%
 
 
 
 
 
Virginia Housing Development Authority, Commonwealth
      Mortgage Bonds, 2008 Series E,
 
 
 
 
 
      5.500%, 7-1-20
 
500
 
 
527
Virginia Public Building Authority, Public Facilities Revenue
      Bonds, Series 2008B,
 
 
 
 
 
      5.250%, 8-1-22
 
250
 
 
286
Industrial Development Authority of Washington County, Virginia,
      Hospital Revenue Bonds (Mountain States Health Alliance),
      Series 2009C,
 
 
 
 
 
      7.500%, 7-1-29
 
500
 
 
562
 
 
 
 
 
1,375
Washington - 1.46%
 
 
 
 
 
Washington Health Care Facilities Authority, Revenue Bonds,
      Series 2009A (Swedish Health Services),
 
 
 
 
 
      6.500%, 11-15-33
 
500
 
 
528
Washington Health Care Facilities Authority, Revenue Bonds,
      Series 2007C (Virginia Mason Medical Center),
 
 
 
 
 
      5.500%, 8-15-36
 
500
 
 
467
 
 
 
 
 
995
West Virginia - 0.71%
 
 
 
 
 
West Virginia Hospital Finance Authority, Hospital Revenue
      Refunding and Improvement Bonds (West Virigina United
      Health System Obligated Group), 2009 Series C,
 
 
 
 
 
      5.500%, 6-1-39
 
500
 
 
487
 
 
 
 
 
 
Wisconsin - 0.79%
 
 
 
 
 
Wisconsin Health and Educational Facilities Authority, Revenue
      Bonds, Series 2009 (Pro Health Care, Inc. Obligated Group),
 
 
 
 
 
      6.625%, 2-15-39
 
500
 
 
536
 
 
 
 
 
 
Wyoming - 1.14%
 
 
 
 
 
Housing Authority of the City of Cheyenne, Housing Revenue
      Bonds (Foxcrest II Project), Series 2004,
 
 
 
 
 
      5.750%, 6-1-34
 
300
 
 
252
Wyoming Municipal Power Agency, Power Supply System
      Revenue Bonds, 2008 Series A,
 
 
 
 
 
      5.250%, 1-1-23
 
500
 
 
526
 
 
 
 
 
778

TOTAL MUNICIPAL BONDS - 98.58%
 
 
 
$
67,149
(Cost: $64,387)
 
 
 
 
 

SHORT-TERM SECURITIES - 0.21%
Master Note  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (C)
 
143
 
$
143
(Cost: $143)
 
 
 
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 98.79%
 
$
67,292
(Cost: $64,530)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.21%
 
 
825

NET ASSETS - 100.00%
 
 
 
$
68,117

Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Municipal Bonds
$   ––
$67,149
$   ––
      Short-Term Securities
––
143
––
           Total Investments in Securities
$   ––
$67,292
$   ––

(A)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009.

(B)Zero coupon bond.

(C)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.











SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)



MUNICIPAL BONDS
Principal
Value
Arizona - 3.01%
 
 
 
 
 
The Industrial Development Authority of the County of Mohave,
      Tax Exempt Correctional Facilities Contract Revenue Bonds
      (Mohave Prison, LLC Expansion Project), Series 2008,
 
 
 
 
 
      8.000%, 5-1-25
$
500
 
$
592
The Industrial Development Authority of the County of Pima,
      Education Revenue Bonds (Noah Webster Basic School
      Project), Series 2004A,
 
 
 
 
 
      6.125%, 12-15-34
 
65
 
 
54
 
 
 
 
 
646
California - 9.95%
 
 
 
 
 
California Municipal Finance Authority, Educational Facilities
      Revenue Bonds (King/Chavez Academies Project),
      Series 2009A,
 
 
 
 
 
      8.750%, 10-1-39
 
100
 
 
111
CRHMFA Homebuyers Fund, Single Family Mortgage Revenue
      Bonds (Mortgage-Backed Securities Program), Series 2007A,
 
 
 
 
 
      5.450%, 2-1-48
 
60
 
 
61
California Statewide Communities Development Authority,
      Senior Living Revenue Bonds (Southern California
      Presbyterian Homes), Series 2009,
 
 
 
 
 
      7.000%, 11-15-29
 
150
 
 
158
Golden State Tobacco Securitization Corporation, Tobacco
      Settlement Asset-Backed Bonds, Series 2007A-1 Senior
      Current Interest Bonds,
 
 
 
 
 
      5.125%, 6-1-47
 
500
 
 
338
Redevelopment Agency of the City of Hollister, Hollister
      Community Development Project Tax Allocation Bonds,
      Series 2009 (County of San Benito, California)
      (Bank Qualified):
 
 
 
 
 
      6.750%, 10-1-29
 
75
 
 
80
      7.000%, 10-1-32
 
510
 
 
550
Certificates of Participation, Evidencing Proportionate Interests
      of the Holders Thereof in Installment Payments to be Paid by
      Palomar Pomerado Health, San Diego County, California:
 
 
 
 
 
      6.625%, 11-1-29
 
200
 
 
200
      6.750%, 11-1-39
 
100
 
 
100
Community Facilities District No. 15 (Mission Ranch) of
      Riverside Unified School District, Special Tax Bonds,
      2009 Series A (Improvement Area No. 3):
 
 
 
 
 
      6.500%, 9-1-29
 
360
 
 
354
      6.750%, 9-1-39
 
70
 
 
69
Redevelopment Agency of the City of San Buenaventura,
      Merged San Buenaventura Redevelopment Project,
      2008 Tax Allocation Bonds,
 
 
 
 
 
      8.000%, 8-1-38
 
100
 
 
112
 
 
 
 
 
2,133
Colorado - 5.59%
 
 
 
 
 
Colorado Educational and Cultural Facilities Authority, Charter
      School Revenue Bonds (The Classical Academy Project),
      Series 2008A,
 
 
 
 
 
      7.400%, 12-1-38
 
85
 
 
98
Colorado Educational and Cultural Facilities Authority, Charter
      School Revenue Bonds (Twin Peaks Charter Academy
      Project), Series 2008,
 
 
 
 
 
      7.000%, 11-15-38
 
230
 
 
260
Colorado Health Facilities Authority, Revenue Bonds
      (Christian Living Communities Project), Series 2006A,
 
 
 
 
 
      5.750%, 1-1-37
 
150
 
 
119
Colorado Health Facilities Authority, Revenue Bonds
      (Christian Living Communities - Clermont Park Project),
      Series 2009A,
 
 
 
 
 
      9.000%, 1-1-34
 
30
 
 
32
Cordillera Metropolitan District, General Obligation Bonds,
      Series 2000B,
 
 
 
 
 
      6.200%, 12-1-20
 
80
 
 
81
North Range Metropolitan District No. 2, Adams County,
      Colorado, Limited Tax General Obligation Bonds,
      Series 2007,
 
 
 
 
 
      5.500%, 12-15-27
 
500
 
 
375
Wildgrass Metropolitan District (in the City and County of
      Broomfield, Colorado), General Obligation (Limited Tax
      Convertible to Unlimited Tax) Refunding Bonds,
      Series 2007,
 
 
 
 
 
      6.200%, 12-1-34
 
250
 
 
234
 
 
 
 
 
1,199
Connecticut - 0.70%
 
 
 
 
 
Eastern Connecticut Resource Recovery Authority, Solid
      Waste Revenue Bonds (Wheelabrator Lisbon Project),
      Series 1993A,
 
 
 
 
 
      5.500%, 1-1-14
 
150
 
 
150
 
 
 
 
 
 
Florida - 4.10%
 
 
 
 
 
Brevard County, Florida, Industrial Development Revenue
      Bonds (TUFF Florida Tech Project), Series 2009:
 
 
 
 
 
      6.500%, 11-1-29
 
250
 
 
248
      6.750%, 11-1-39
 
250
 
 
248
Hillsborough County Industrial Development Authority,
      Industrial Development Revenue Bonds, Health Facilities
      Projects, Series 2008B (University Community Hospital),
 
 
 
 
 
      8.000%, 8-15-32
 
350
 
 
383
 
 
 
 
 
879
Georgia - 1.89%
 
 
 
 
 
Development Authority of Clayton County (Georgia),Special
      Facilities Revenue Bonds (Delta Air Lines, Inc. Project),
      Series 2009A,
 
 
 
 
 
      8.750%, 6-1-29
 
400
 
 
406
 
 
 
 
 
 
Guam - 1.72%
 
 
 
 
 
Government of Guam, General Obligation Bonds, 2009 Series A:
 
 
 
 
 
      5.750%, 11-15-14
 
125
 
 
131
      7.000%, 11-15-39
 
230
 
 
237
 
 
 
 
 
368
Hawaii - 2.30%
 
 
 
 
 
Department of Budget and Finance of the State of Hawaii,
      Special Purpose Senior Living Revenue Bonds
      (15 Craigside Project), Series 2009A,
 
 
 
 
 
      8.750%, 11-15-29
 
450
 
 
493
 
 
 
 
 
 
Illinois - 5.66%
 
 
 
 
 
City of Fairview Heights, Illinois, Tax Increment Refunding
      Revenue Bonds (Shoppes at St. Clair Square Redevelopment
      Project), Series 2009A,
 
 
 
 
 
      8.000%, 12-1-28
 
45
 
 
49
Illinois Finance Authority, Revenue Bonds (Three Crowns Park
      Project), Series 2006A,
 
 
 
 
 
      5.875%, 2-15-38
 
100
 
 
85
Illinois Finance Authority, Revenue Bonds, Series 2009
      (Silver Cross Hospital and Medical Centers),
 
 
 
 
 
      7.000%, 8-15-44
 
200
 
 
205
Illinois Finance Authority, Revenue Bonds, Series 2009C
      (Rush University Medical Center Obligated Group),
 
 
 
 
 
      6.625%, 11-1-39
 
250
 
 
266
Southwestern Illinois Development Authority, Local
      Government Program Revenue Bonds, Series 2009
      (City of Granite City Project),
 
 
 
 
 
      8.000%, 1-15-22
 
100
 
 
107
City of Springfield, Sangamon County, Illinois, Special Service
      Area (Legacy Pointe) Ad Valorem Tax Bonds, Series 2009,
 
 
 
 
 
      7.875%, 3-1-32
 
500
 
 
501
 
 
 
 
 
1,213
Indiana - 1.53%
 
 
 
 
 
Indiana Finance Authority, Educational Facilities Revenue
      Bonds, Series 2009A (Irvington Community School
      Project),
 
 
 
 
 
      9.000%, 7-1-39
 
175
 
 
201
City of Whiting (Indiana), Redevelopment District Tax
      Increment Revenue Bonds, Series 2006 (Standard Avenue
      Project),
 
 
 
 
 
      5.350%, 1-15-27
 
155
 
 
127
 
 
 
 
 
328
Kansas - 0.97%
 
 
 
 
 
Arkansas City, Kansas Public Building Commission,
      Revenue Bonds, Series 2009 (South Central Kansas
      Regional Medical Center),
 
 
 
 
 
      7.000%, 9-1-38
 
200
 
 
209
 
 
 
 
 
 
Louisiana - 0.96%
 
 
 
 
 
New Orleans Aviation Board, Gulf Opportunity Zone CFC
      Revenue Bonds (Consolidated Rental Car Project)
      Series 2009A,
 
 
 
 
 
      6.500%, 1-1-40
 
200
 
 
205
 
 
 
 
 
 
Massachusetts - 1.86%
 
 
 
 
 
Massachusetts Development Finance Agency, Senior Living
      Facility Revenue Bonds (The Groves in Lincoln Issue),
      Series 2009A,
 
 
 
 
 
      7.875%, 6-1-44
 
200
 
 
198
Massachusetts Development Finance Agency, Senior Living
      Facility Revenue Bonds (The Groves in Lincoln Issue),
      Series 2009C-2,
 
 
 
 
 
      6.250%, 6-1-14
 
200
 
 
200
 
 
 
 
 
398
Michigan - 3.72%
 
 
 
 
 
City of Detroit, Michigan Sewage Disposal System,
      Senior Lien Revenue Refunding Bonds (Modal Fixed Rate),
      Series 2001(C-1),
 
 
 
 
 
      7.000%, 7-1-27
 
200
 
 
235
City of Detroit, Michigan Sewage Disposal System,
      Senior Lien Revenue Refunding Bonds (Modal Fixed Rate),
      Series 2003(B),
 
 
 
 
 
      7.500%, 7-1-33
 
200
 
 
237
City of Royal Oak Hospital Finance Authority, Hospital Revenue
      and Refunding Bonds (William Beaumont Hospital Obligated
      Group), Series 2009V,
 
 
 
 
 
      8.250%, 9-1-39
 
150
 
 
177
City of Royal Oak Hospital Finance Authority, Hospital Revenue
      and Refunding Bonds (William Beaumont Hospital Obligated
      Group), Series 2009W,
 
 
 
 
 
      6.000%, 8-1-39
 
150
 
 
148
 
 
 
 
 
797
Missouri - 9.29%
 
 
 
 
 
City of Arnold, Missouri, Real Property Tax Increment Revenue
      Bonds (Arnold Triangle Redevelopment Project),
      Series 2009A,
 
 
 
 
 
      7.750%, 5-1-28
 
200
 
 
214
City of Belton, Missouri, Tax Increment Revenue Bonds
      (Belton Town Centre Project), Series 2006,
 
 
 
 
 
      5.625%, 3-1-25
 
300
 
 
243
The Industrial Development Authority of the City of Bridgeton,
      Missouri, Sales Tax Revenue Bonds, Series 2008A (Hilltop
      Community Improvement District Project),
 
 
 
 
 
      5.875%, 11-1-35
 
250
 
 
182
Broadway-Fairview Transportation Development District
      (Columbia, Missouri), Transportation Sales Tax Revenue
      Bonds, Series 2006A,
 
 
 
 
 
      6.125%, 12-1-36
 
200
 
 
128
The Elm Point Commons Community Improvement District
      (St. Charles, Missouri), Special Assessment Revenue Bonds,
      Series 2007,
 
 
 
 
 
      5.750%, 3-1-27
 
110
 
 
93
City of Jennings, Missouri, Tax Increment and Community
      Improvement Refunding Revenue Bonds, Series 2006
      (Northland Redevelopment Area Project),
 
 
 
 
 
      5.000%, 11-1-23
 
180
 
 
152
The Industrial Development Authority of the City of Kansas
      City, Missouri, Health Care Facilities First Mortgage
      Revenue Bonds (The Bishop Spencer Place, Incorporated
      Project), Series 1994:
 
 
 
 
 
      6.250%, 1-1-24
 
100
 
 
88
      6.500%, 1-1-35
 
100
 
 
83
Lakeside 370 Levee District (St. Charles County, Missouri),
      Levee District Improvement Bonds, Series 2008,
 
 
 
 
 
      7.000%, 4-1-28
 
250
 
 
244
City of Liberty, Missouri, Tax Increment Revenue Bonds
      (Liberty Triangle Project), Series 2007,
 
 
 
 
 
      5.500%, 10-1-22
 
260
 
 
222
Missouri Development Finance Board, Research Facility
      Revenue Bonds, Series 2007 (Midwest Research Institute
      Project),
 
 
 
 
 
      4.500%, 11-1-27
 
225
 
 
175
University Place Transportation Development District
      (St. Louis County, Missouri), Subordinate Transportation
      Sales Tax and Special Assessment Revenue Bonds,
      Series 2009,
 
 
 
 
 
      7.500%, 4-1-32
 
150
 
 
167
 
 
 
 
 
1,991
Nevada - 3.52%
 
 
 
 
 
Clark County, Nevada, Special Improvement District No. 142
      (Mountain's Edge), Local Improvement Bonds, Series 2003,
 
 
 
 
 
      6.100%, 8-1-18
 
95
 
 
92
City of Las Vegas Redevelopment Agency, Nevada,
      Tax Increment Revenue Bonds, Series 2009A,
 
 
 
 
 
      6.000%, 6-15-15
 
325
 
 
351
Overton Power District No. 5 (Nevada), Special Obligation
      Revenue Bonds, Series 2008,
 
 
 
 
 
      8.000%, 12-1-38
 
265
 
 
312
 
 
 
 
 
755
New Jersey - 3.89%
 
 
 
 
 
New Jersey Economic Development Authority, Special
      Facility Revenue Bonds (Continental Airlines, Inc. Project),
      Series 1999:
 
 
 
 
 
      6.250%, 9-15-19
 
115
 
 
106
      6.400%, 9-15-23
 
240
 
 
220
New Jersey Educational Facilities Authority, Revenue
      Refunding Bonds, University of Medicine and Dentistry
      of New Jersey Issue, Series 2009 B,
 
 
 
 
 
      7.500%, 12-1-32
 
450
 
 
507
 
 
 
 
 
833
New York - 0.88%
 
 
 
 
 
New York City Industrial Development Agency, Special Facility
      Revenue Bonds, Series 2005 (American Airlines, Inc.
      John F. Kennedy International Airport Project),
 
 
 
 
 
      7.125%, 8-1-11
 
100
 
 
100
Suffolk County Industrial Development Agency (New York),
      Civic Facility Revenue Bonds, Series 1999A
      (The Southampton Hospital Association Civic Facility),
 
 
 
 
 
      7.250%, 1-1-20
 
90
 
 
89
 
 
 
 
 
189
Ohio - 4.16%
 
 
 
 
 
Buckeye Tobacco Settlement Financing Authority, Tobacco
      Settlement Asset-Backed Bonds, Series 2007,
 
 
 
 
 
      6.500%, 6-1-47
 
150
 
 
123
Greene County Port Authority, Adult Service Facility Revenue
      Bonds, Series 2009 (Greene, Inc. Project),
 
 
 
 
 
      7.500%, 12-1-33
 
100
 
 
110
Ohio Air Quality Development Authority, State of Ohio,
      Air Quality Revenue Bonds (Ohio Valley Electric
      Corporation Project) Series 2009E,
 
 
 
 
 
      5.625%, 10-1-19
 
400
 
 
407
Toledo Lucas County Port Authority, Development Revenue
      Bonds (Northwest Ohio Bond Fund), Series 2004C
      (Toledo Express Airport Project),
 
 
 
 
 
      6.375%, 11-15-32
 
300
 
 
252
 
 
 
 
 
892
Oklahoma - 0.76%
 
 
 
 
 
Oklahoma County Finance Authority, Retirement Facility
      Revenue Bonds (Concordia Life Care Community),
      Series 2005,
 
 
 
 
 
      6.000%, 11-15-38
 
200
 
 
164
 
 
 
 
 
 
Pennsylvania - 0.67%
 
 
 
 
 
The Borough of Langhorne Manor, Higher Education and Health
      Authority (Bucks County, Pennsylvania), Hospital Revenue
      Bonds, Series of 1992 (The Lower Bucks Hospital),
 
 
 
 
 
      7.300%, 7-1-12
 
70
 
 
65
Pennsylvania Economic Development Financing Authority,
      Solid Waste Disposal Revenue Bonds (Waste Management,
      Inc. Project), Series 2004A,
 
 
 
 
 
      4.700%, 11-1-21
 
75
 
 
79
 
 
 
 
 
144
Puerto Rico - 1.01%
 
 
 
 
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax
      Revenue Bonds, First Subordinate Series 2009A,
 
 
 
 
 
      6.375%, 8-1-39
 
200
 
 
217
 
 
 
 
 
 
South Carolina - 2.34%
 
 
 
 
 
South Carolina Jobs-Economic Development Authority,
      Student Housing Revenue Bonds (Coastal Housing
      Foundation, LLC Project), Series 2009A,
 
 
 
 
 
      6.500%, 4-1-42
 
500
 
 
502
 
 
 
 
 
 
Texas - 17.46%
 
 
 
 
 
Alliance Airport Authority, Inc., Special Facilities Revenue
      Bonds, Series 1991 (American Airlines, Inc. Project),
 
 
 
 
 
      7.000%, 12-1-11
 
100
 
 
96
Cass County Industrial Development Corporation (Texas),
      Environmental Improvement Revenue Bonds,
      2009 Series A,
 
 
 
 
 
      9.500%, 3-1-33
 
100
 
 
124
City of Hackberry, Texas (A municipal corporation of the
      State of Texas located in Denton County), Combination
      Special Assessment and Contract Revenue Road Bonds,
      Series 2009A (Hackberry Hidden Cove Public Improvement
      District No. 2 Project),
 
 
 
 
 
      9.000%, 9-1-38
 
250
 
 
256
City of Hackberry Texas, Combination Special Assessment
      and Contract Revenue Road Bonds, Series 2009A
      (Hackberry Hidden Cove Public Improvement District
      No. 2 Project),
 
 
 
 
 
      8.625%, 9-1-29
 
100
 
 
103
Harris County Cultural Education Facilities Finance Corporation,
      Revenue Refunding Bonds, Senior Series 2009 (Space Center
      Houston Project),
 
 
 
 
 
      7.000%, 8-15-28
 
500
 
 
501
Hopkins County Hospital District (A political subdivision of the
      State of Texas located in Hopkins County), Hospital Revenue
      Bonds, Series 2008,
 
 
 
 
 
      6.000%, 2-15-38
 
150
 
 
135
La Vernia Higher Education Finance Corporation (Winfree
      Academy Charter School), Education Revenue Bonds,
      Series 2009,
 
 
 
 
 
      9.000%, 8-15-38
 
100
 
 
118
KIPP, Inc., Education Revenue Bonds, Series 2009A (Issued by
      La Vernia Higher Education Finance Corporation),
 
 
 
 
 
      6.375%, 8-15-44
 
500
 
 
491
Lufkin Health Facilities Development Corporation, Revenue
      Refunding and Improvement Bonds (Memorial Health
      System of East Texas), Series 2009,
 
 
 
 
 
      6.250%, 2-15-37
 
500
 
 
484
City of Pharr, Texas Higher Education Finance Authority,
      Education Revenue Bonds (Idea Public Schools),
      Series 2009A:
 
 
 
 
 
      6.250%, 8-15-29
 
100
 
 
99
      6.500%, 8-15-39
 
200
 
 
200
Tarrant County Cultural Education Facilities Finance Corporation,
      Retirement Facility Revenue Bonds (Northwest Senior
      Housing Corporation - Edgemere Project), Series 2006A,
 
 
 
 
 
      6.000%, 11-15-26
 
250
 
 
225
Tarrant County Cultural Education Facilities Finance Corporation,
      Retirement Facility Revenue Bonds (Buckingham Senior
      Living Community, Inc. Project), Series 2007,
 
 
 
 
 
      5.625%, 11-15-27
 
250
 
 
230
Tarrant County Cultural Education Facilities Finance Corporation,
      Charter School Revenue Bonds (Trinity Basin Preparatory
      Project), Series 2009A,
 
 
 
 
 
      7.750%, 6-1-39
 
155
 
 
171
Texas Private Activity Bond Surface Transportation Corporation,
      Senior Lien Revenue Bonds (NTE Mobility Partners LLC
      North Tarrant Express Managed Lanes Project), Series 2009,
 
 
 
 
 
      6.875%, 12-31-39
 
500
 
 
509
 
 
 
 
 
3,742
Utah - 1.68%
 
 
 
 
 
Municipal Building Authority of Uintah County, Utah, Lease
      Revenue Bonds, Series 2008A,
 
 
 
 
 
      5.300%, 6-1-28
 
350
 
 
361
 
 
 
 
 
 
Virginia - 4.35%
 
 
 
 
 
Economic Development Authority of James City County,
      Virginia, Residential Care Facility Revenue Bonds
      (Virginia United Methodist Homes of Williamsburg, Inc.),
      Series 2007A,
 
 
 
 
 
      5.500%, 7-1-37
 
300
 
 
170
Industrial Development Authority of the City of Lexington,
      Virginia, Hospital Facility Revenue Bonds (Stonewall
      Jackson Hospital), Series 2000:
 
 
 
 
 
      7.000%, 7-1-25
 
215
 
 
216
      7.000%, 7-1-30
 
155
 
 
155
Norfolk Redevelopment and Housing Authority, Multifamily
      Rental Housing Facility Revenue Bonds, Series 1996
      (1016 Limited Partnership - Sussex Apartments Project),
 
 
 
 
 
      8.000%, 9-1-26
 
65
 
 
62
Industrial Development Authority of Smyth County (Virginia),
      Hospital Revenue Bonds (Mountain States Health Alliance),
      Series 2009B,
 
 
 
 
 
      8.000%, 7-1-38
 
135
 
 
155
Tobacco Settlement Financing Corporation, Tobacco Settlement
      Asset-Backed Bonds, Series 2007B-1 Senior Current Interest
      Bonds,
 
 
 
 
 
      5.000%, 6-1-47
 
250
 
 
174
 
 
 
 
 
932
Washington - 0.80%
 
 
 
 
 
Washington Health Care Facilities Authority, Revenue Bonds,
      Series 2008 (Seattle Cancer Care Alliance),
 
 
 
 
 
      7.375%, 3-1-38
 
155
 
 
171
 
 
 
 
 
 
Wisconsin - 1.92%
 
 
 
 
 
Wisconsin Health and Educational Facilities Authority, Revenue
      Bonds (Saint John's Communities, Inc.), Series 2009:
 
 
 
 
 
      7.250%, 9-15-29
 
200
 
 
204
      7.625%, 9-15-39
 
200
 
 
208
 
 
 
 
 
412

TOTAL MUNICIPAL BONDS - 96.69%
 
 
 
$
20,729
(Cost: $19,725)
 
 
 
 
 

SHORT-TERM SECURITIES - 1.52%
Master Note  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (A)
 
325
 
$
325
(Cost: $325)
 
 
 
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 98.21%
 
$
21,054
(Cost: $20,050)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.79%
 
 
384

NET ASSETS - 100.00%
 
 
 
$
21,438

Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Municipal Bonds
$   ––
$20,729
$   ––
      Short-Term Securities
––
325
––
           Total Investments in Securities
$   ––
$21,054
$   ––

(A)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.











SCHEDULE OF INVESTMENTS
Ivy Science and Technology Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)


COMMON STOCKS
Shares
Value
Agricultural Products - 5.89%  
 
 
Archer Daniels Midland Company
 
804
 
$
25,158
Bunge Limited
 
566
 
 
36,121
 
 
 
 
 
61,279
Application Software - 9.19%  
 
 
ACI Worldwide, Inc. (A)
 
1,663
 
 
28,522
Aspen Technology, Inc. (A)
 
4,069
 
 
39,881
i2 Technologies, Inc. (A)
 
143
 
 
2,730
Lawson Software, Inc. (A)
 
3,688
 
 
24,524
 
 
 
 
 
95,657
Biotechnology - 8.97%  
 
 
Amgen Inc. (A)
 
428
 
 
24,189
Genzyme Corporation (A)
 
543
 
 
26,617
Isis Pharmaceuticals, Inc. (A)
 
483
 
 
5,358
Vertex Pharmaceuticals Incorporated (A)
 
869
 
 
37,225
 
 
 
 
 
93,389
Communications Equipment - 4.80%  
 
 
Alcatel, ADR
 
2,874
 
 
9,543
Research In Motion Limited (A)
 
598
 
 
40,385
 
 
 
 
 
49,928
Computer Hardware - 2.54%  
 
 
Apple Inc. (A)
 
74
 
 
15,541
High Tech Computer Corp. (B)
 
950
 
 
10,879
 
 
 
 
 
26,420
Consumer Electronics - 0.97%  
 
 
Garmin Ltd.
 
328
 
 
10,063
 
 
 
 
 
 
Data Processing & Outsourced Services - 11.08%  
 
 
Alliance Data Systems Corporation (A)
 
807
 
 
52,118
Euronet Worldwide, Inc. (A)
 
1,179
 
 
25,881
Lender Processing Services, Inc.
 
577
 
 
23,457
Tivit Terceirizacao de Technologia e Servicos (B)
 
423
 
 
3,885
Tivit Terceirizacao de Technologia e Servicos (B)(C)
 
931
 
 
8,561
WNS (Holdings) Limited, ADR (A)
 
93
 
 
1,403
 
 
 
 
 
115,305
Diversified Chemicals - 2.65%  
 
 
E.I. du Pont de Nemours and Company
 
381
 
 
12,811
 
FMC Corporation
 
264
 
 
14,732
 
 
 
 
 
27,543
Diversified Support Services - 0.96%  
 
 
EnerNOC, Inc. (A)
 
328
 
 
9,953
 
 
 
 
 
 
Electrical Components & Equipment - 0.50%  
 
 
POWER-ONE, INC. (A)
 
1,192
 
 
5,184
 
 
 
 
 
 
Electronic Equipment & Instruments - 2.54%  
 
 
IPG Photonics Corporation (A)
 
117
 
 
1,960
Itron, Inc. (A)
 
363
 
 
24,508
 
 
 
 
 
26,468
Fertilizers & Agricultural Chemicals - 0.45%  
 
 
Sociedad Quimica y Minera de Chile S.A., ADR
 
126
 
 
4,723
 
 
 
 
 
 
Health Care Distributors - 0.85%  
 
 
Animal Health International, Inc. (A)
 
501
 
 
1,203
McKesson Corporation
 
122
 
 
7,613
 
 
 
 
 
8,816
Health Care Equipment - 1.82%  
 
 
STERIS Corporation
 
181
 
 
5,060
Varian Medical Systems, Inc. (A)
 
295
 
 
13,825
 
 
 
 
 
18,885
Health Care Facilities - 1.44%  
 
 
HealthSouth Corporation (A)
 
659
 
 
12,373
LifePoint Hospitals, Inc. (A)
 
81
 
 
2,637
 
 
 
 
 
15,010
Health Care Services - 0.58%  
 
 
Fleury S.A. (A)(B)(C)
 
422
 
 
4,452
Fleury S.A. (A)(B)
 
147
 
 
1,555
 
 
 
 
 
6,007
Home Entertainment Software - 2.67%  
 
 
Activision Blizzard, Inc. (A)
 
653
 
 
7,259
Nintendo Co., Ltd. (B)
 
86
 
 
20,492
 
 
 
 
 
27,751
Industrial Machinery - 3.50%  
 
 
 
ESCO Technologies Inc.
 
772
 
 
27,673
 
Pentair, Inc.
 
273
 
 
8,808
 
 
 
 
 
36,481
Integrated Telecommunication Services - 1.09%  
 
 
CenturyTel, Inc.
 
312
 
 
11,308
 
 
 
 
 
 
Internet Software & Services - 1.26%  
 
 
SAVVIS, Inc. (A)
 
934
 
 
13,124
 
 
 
 
 
 
IT Consulting & Other Services - 4.58%  
 
 
Telvent GIT, S.A.
 
1,223
 
 
47,668
 
 
 
 
 
 
Life & Health Insurance - 0.89%  
 
 
Amil Participacoes S.A. (B)
 
1,173
 
 
9,234
 
 
 
 
 
 
Oil & Gas Equipment & Services - 0.22%  
 
 
ION Geophysical Corporation (A)
 
395
 
 
2,339
 
 
 
 
 
 
Research & Consulting Services - 0.27%  
 
 
Mistras Group, Inc. (A)
 
189
 
 
2,851
 
 
 
 
 
 
Semiconductor Equipment - 0.73%  
 
 
Photronics, Inc. (A)
 
1,713
 
 
7,621
 
 
 
 
 
 
Semiconductors - 15.47%  
 
 
Avago Technologies Limited (A)
 
637
 
 
11,653
Cree, Inc. (A)
 
902
 
 
50,817
Inotera Memories, Inc. (B)
21,238
 
 
17,835
Micron Technology, Inc. (A)
 
2,595
 
 
27,406
PMC-Sierra, Inc. (A)
 
1,812
 
 
15,694
Samsung Electronics Co., Ltd. (B)
 
31
 
 
21,189
Texas Instruments Incorporated
 
625
 
 
16,285
 
 
 
 
 
160,879
Systems Software - 5.08%  
 
 
Microsoft Corporation
 
1,732
 
 
52,812
 
 
 
 
 
 
Wireless Telecommunication Service - 1.34%  
 
 
 
Clearwire Corporation, Class A (A)
 
205
 
 
1,384
 
Sprint Nextel Corporation (A)
 
3,448
 
 
12,620
 
 
 
 
 
14,004

TOTAL COMMON STOCKS - 92.33%
$
960,702
(Cost: $835,197)
 
 
 
 
 

PREFERRED STOCKS - 0.73%
Agricultural Products
 
 
 
Archer Daniels Midland Company (A)
 
175
 
$
7,632
(Cost: $5,854)
 
 
 
 
 
 
 
 
 
 
SHORT-TERM SECURITIES
Principal
Commercial Paper (D) - 6.44%  
 
 
Citigroup Funding Inc.:
 
 
 
 
 
      0.160%, 1-22-10
$
7,000
 
 
6,999
      0.160%, 1-25-10
 
7,000
 
 
6,999
CVS Caremark Corporation,
 
 
 
 
 
      0.230%, 1-13-10
 
3,000
 
 
3,000
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
 
 
 
 
 
      0.230%, 1-14-10
 
4,000
 
 
4,000
Hewlett-Packard Company,
 
 
 
 
 
      0.110%, 1-11-10
 
5,000
 
 
5,000
McCormick & Co. Inc.,
 
 
 
 
 
      0.070%, 1-4-10
 
8,745
 
 
8,745
Nokia Corp.,
 
 
 
 
 
      0.150%, 1-13-10
 
9,000
 
 
9,000
Straight-A Funding, LLC (Federal Financing Bank),
 
 
 
 
 
      0.130%, 1-22-10
 
5,000
 
 
5,000
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.130%, 2-16-10
10,000
 
 
9,997
Walt Disney Company (The),
 
 
 
 
 
      0.100%, 1-8-10
 
6,000
 
 
6,000
Wisconsin Electric Power Co.,
 
 
 
 
 
      0.110%, 1-4-10
 
2,288
 
 
2,288
 
 
 
 
 
67,028
Commercial Paper (backed by irrevocable bank letter
      of credit) (D) - 0.77% 		 
 
 
 
River Fuel Trust #1 (Bank of New York (The)),
 
 
 
 
 
 
      0.250%, 3-15-10
 
8,000
 
 
7,996
 
 
 
 
 
 
Master Note - 0.23%  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (E)
 
2,361
 
 
2,361
 
 
 
 
 
 
TOTAL SHORT-TERM SECURITIES - 7.44%
$
77,385
(Cost: $77,385)
 
 
 
 
 

TOTAL INVESTMENT SECURITIES - 100.50%
 
$
1,045,719
(Cost: $918,436)
 
 
 
 
 

LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.50%)
 
 
(5,228
)

NET ASSETS - 100.00%
 
 
 
$
1,040,491
 

 
Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
890,307
$
70,395
$
––
      Preferred Stocks
7,632
––
––
      Short-Term Securities
––
77,385
––
           Total Investments in Securities
$
897,939
$
147,780
$
––


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

 
Corporate
Debt
Securities
Put
Options
Written
Options
Beginning Balance 4-1-09  
$
3,900
 
  
$
2,512
 
  
$
(5,746
) 
Net realized gain (loss)  
 
1,610
  
 
(4,242
) 
  
 
(5,247
) 
Net unrealized appreciation (depreciation)  
 
––
 
 
2,151
 
  
 
2,467
Net purchases (sales)  
 
(5,510
) 
  
 
(421
) 
  
 
8,526
 
Transfers in and/or (out) of Level 3 during
      the period		  
 
––
 
 
––
 
 
––
Ending Balance 12-31-09  
$
––
 
  
$
––
 
  
$
––
 
Net change in unrealized appreciation
      (depreciation) for all Level 3 investments
      still held as of 12-31-09		  
$
––
 
$
––
 
  
$
––

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

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

(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At December 31, 2009, the total value of these securities amounted to $13,013 or 1.25% of net assets.

(D)Rate shown is the yield to maturity at December 31, 2009.

(E)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.

Securities with an aggregate market value of $70,395, representing 6.77% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Directors.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipt











SCHEDULE OF INVESTMENTS
Ivy Small Cap Growth Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)


COMMON STOCKS
Shares
Value
Aerospace & Defense - 1.35%  
 
 
Ladish Co., Inc. (A)
 
338
 
$
5,102
 
 
 
 
 
 
Apparel Retail - 3.84%  
 
 
Urban Outfitters, Inc. (A)
 
165
 
 
5,782
Zumiez Inc. (A)
 
687
 
 
8,735
 
 
 
 
 
14,517
Apparel, Accessories & Luxury Goods - 2.10%  
 
 
Under Armour, Inc., Class A (A)
 
291
 
 
7,935
 
 
 
 
 
 
Application Software - 13.85%  
 
 
ACI Worldwide, Inc. (A)
 
515
 
 
8,836
Blackboard Inc. (A)
 
125
 
 
5,692
FactSet Research Systems, Inc.
 
144
 
 
9,507
SolarWinds, Inc. (A)
 
146
 
 
3,355
Solera Holdings, Inc.
 
296
 
 
10,664
Sonic Solutions (A)
 
804
 
 
9,512
Ultimate Software Group, Inc. (The) (A)
 
162
 
 
4,746
 
 
 
 
 
52,312
Auto Parts & Equipment - 2.52%  
 
 
LKQ Corporation (A)
 
486
 
 
9,513
 
 
 
 
 
 
Automotive Retail - 1.88%  
 
 
O'Reilly Automotive, Inc. (A)
 
186
 
 
7,083
 
 
 
 
 
 
Computer Hardware - 3.19%  
 
 
Stratasys, Inc. (A)
 
696
 
 
12,033
 
 
 
 
 
 
Construction & Farm Machinery & Heavy Trucks - 1.83%  
 
 
Westinghouse Air Brake Technologies Corporation
 
169
 
 
6,902
 
 
 
 
 
 
Education Services - 9.60%  
 
 
Capella Education Company (A)
 
244
 
 
18,362
K12 Inc. (A)
 
441
 
 
8,945
Strayer Education, Inc.
 
42
 
 
8,924
 
 
 
 
 
36,231
Electrical Components & Equipment - 1.66%  
 
 
General Cable Corporation (A)
 
213
 
 
6,258
 
 
 
 
 
 
Electronic Components - 2.71%  
 
 
DTS, Inc. (A)
 
299
 
 
10,223
 
 
 
 
 
 
Health Care Equipment - 8.94%  
 
 
Hologic, Inc. (A)
 
386
 
 
5,590
NuVasive, Inc. (A)
 
391
 
 
12,514
ResMed Inc. (A)
 
121
 
 
6,304
Volcano Corporation (A)
 
539
 
 
9,368
 
 
 
 
 
33,776
Health Care Services - 1.07%  
 
 
Healthways, Inc. (A)
 
221
 
 
4,049
 
 
 
 
 
 
Health Care Supplies - 0.71%  
 
 
Merit Medical Systems, Inc. (A)
 
139
 
 
2,672
 
 
 
 
 
 
Health Care Technology - 2.03%  
 
 
Phase Forward Incorporated (A)
 
498
 
 
7,647
 
 
 
 
 
 
Home Entertainment Software - 0.66%  
 
 
Rosetta Stone Inc. (A)
 
140
 
 
2,508
 
 
 
 
 
 
Industrial Machinery - 2.79%  
 
 
Graco Inc.
 
369
 
 
10,531
 
 
 
 
 
 
Internet Software & Services - 1.64%  
 
 
CyberSource Corporation (A)
 
307
 
 
6,182
 
 
 
 
 
 
Investment Banking & Brokerage - 2.22%  
 
 
Greenhill & Co., Inc.
 
105
 
 
8,393
 
 
 
 
 
 
Oil & Gas Equipment & Services - 8.94%  
 
 
CARBO Ceramics Inc.
 
51
 
 
3,443
Core Laboratories N.V.
 
87
 
 
10,241
Dril-Quip, Inc. (A)
 
193
 
 
10,872
Oceaneering International, Inc. (A)
 
95
 
 
5,558
Superior Energy Services, Inc. (A)
 
151
 
 
3,658
 
 
 
 
 
33,772
Personal Products - 2.71%  
 
 
Alberto-Culver Company
 
349
 
 
10,228
 
 
 
 
 
 
Semiconductors - 4.38%  
 
 
Intersil Corporation, Class A Shares
 
550
 
 
8,440
Semtech Corporation (A)
 
476
 
 
8,090
 
 
 
 
 
16,530
Specialized Finance - 4.54%  
 
 
Portfolio Recovery Associates, Inc. (A)
 
382
 
 
17,140
 
 
 
 
 
 
Steel - 1.93%  
 
 
Allegheny Technologies Incorporated
 
163
 
 
7,298
 
 
 
 
 
 
Systems Software - 4.94%  
 
 
MICROS Systems, Inc. (A)
 
601
 
 
18,646
 
 
 
 
 
 
Trucking - 4.27%  
 
 
Knight Transportation, Inc.
 
412
 
 
7,953
Landstar System, Inc.
 
211
 
 
8,195
 
 
 
 
 
16,148

TOTAL COMMON STOCKS - 96.30%
$
363,629
(Cost: $315,644)
 
 
 
 
 

SHORT-TERM SECURITIES
Principal
Commercial Paper (B) - 2.70%  
 
 
McCormick & Co. Inc.,
 
 
 
 
 
      0.070%, 1-4-10
$
4,229
 
 
4,229
Walt Disney Company (The),
 
 
 
 
 
      0.100%, 1-8-10
 
6,000
 
 
6,000
 
 
 
 
 
10,229
Master Note - 0.68%  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (C)
 
2,553
 
 
2,553
 
 
 
 
 
 
TOTAL SHORT-TERM SECURITIES - 3.38%
$
12,782
(Cost: $12,782)
 
 
 
 
 

TOTAL INVESTMENT SECURITIES - 99.68%
 
$
376,411
(Cost: $328,426)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.32%
 
 
1,208

NET ASSETS - 100.00%
 
 
 
$
377,619

Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
363,629
$
––
$   ––
      Short-Term Securities
––
12,782
––
           Total Investments in Securities
$
363,629
$
12,782
$   ––

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

(B)Rate shown is the yield to maturity at December 31, 2009.

(C)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.












SCHEDULE OF INVESTMENTS
Ivy Tax-Managed Equity Fund (in thousands)
DECEMBER 31, 2009 (UNAUDITED)


COMMON STOCKS
Shares
Value
Air Freight & Logistics - 1.71%  
 
 
FedEx Corporation
 
1
 
$
63
 
 
 
 
 
 
Asset Management & Custody Banks - 0.94%  
 
 
BlackRock, Inc., Class A
 
––
*
 
35
 
 
 
 
 
 
Automotive Retail - 0.81%
 
 
 
AutoZone, Inc. (A)
 
––
*
 
30
 
 
 
 
 
 
Biotechnology - 2.94%  
 
 
Gilead Sciences, Inc. (A)
 
3
 
 
109
 
 
 
 
 
 
Casinos & Gaming - 1.83%  
 
 
Wynn Resorts, Limited (A)
 
1
 
 
68
 
 
 
 
 
 
Communications Equipment - 6.15%  
 
 
Cisco Systems, Inc. (A)
 
4
 
 
107
QUALCOMM Incorporated
 
3
 
 
121
 
 
 
 
 
228
Computer Hardware - 7.76%  
 
 
Apple Inc. (A)
 
1
 
 
166
Hewlett-Packard Company
 
2
 
 
122
 
 
 
 
 
288
Construction & Farm Machinery & Heavy Trucks - 1.13%  
 
 
Deere & Company
 
1
 
 
42
 
 
 
 
 
 
Data Processing & Outsourced Services - 2.89%  
 
 
Visa Inc., Class A
 
1
 
 
107
 
 
 
 
 
 
Department Stores - 1.70%  
 
 
Kohl's Corporation (A)
 
1
 
 
63
 
 
 
 
 
 
Diversified Banks - 0.67%  
 
 
Wells Fargo & Company
 
1
 
 
25
 
 
 
 
 
 
Electrical Components & Equipment - 0.94%  
 
 
Emerson Electric Co.
 
1
 
 
35
 
 
 
 
 
 
Fertilizers & Agricultural Chemicals - 1.92%  
 
 
Monsanto Company
 
1
 
 
71
 
 
 
 
 
 
General Merchandise Stores - 1.05%  
 
 
Target Corporation
 
1
 
 
39
 
 
 
 
 
 
Health Care Equipment - 3.80%  
 
 
Baxter International Inc.
 
1
 
 
57
Intuitive Surgical, Inc. (A)
 
––
*
 
55
Stryker Corporation
 
1
 
 
29
 
 
 
 
 
141
Health Care Supplies - 3.32%  
 
 
Alcon, Inc.
 
1
 
 
84
DENTSPLY International Inc.
 
1
 
 
39
 
 
 
 
 
123
Home Entertainment Software - 1.02%  
 
 
Activision Blizzard, Inc. (A)
 
3
 
 
38
 
 
 
 
 
 
Home Improvement Retail - 3.38%  
 
 
Home Depot, Inc. (The)
 
2
 
 
72
Lowe's Companies, Inc.
 
2
 
 
53
 
 
 
 
 
125
Hotels, Resorts & Cruise Lines - 0.62%  
 
 
Carnival Corporation (A)
 
1
 
 
23
 
 
 
 
 
 
Household Products - 2.70%  
 
 
Colgate-Palmolive Company
 
1
 
 
100
 
 
 
 
 
 
Hypermarkets & Super Centers - 1.11%  
 
 
Costco Wholesale Corporation
 
1
 
 
41
 
 
 
 
 
 
Industrial Gases - 0.32%
 
 
 
Praxair, Inc.
 
––
*
 
12
 
 
 
 
 
 
Internet Retail - 1.48%
 
 
 
Amazon.com, Inc. (A)
 
––
*
 
55
 
 
 
 
 
 
Internet Software & Services - 3.67%
 
 
 
Google Inc., Class A (A)
 
––
*
 
136
 
 
 
 
 
 
Investment Banking & Brokerage - 3.22%
 
 
 
Goldman Sachs Group, Inc. (The)
 
1
 
 
119
 
 
 
 
 
 
Life Sciences Tools & Services - 2.18%  
 
 
Thermo Fisher Scientific Inc. (A)
 
2
 
 
81
 
 
 
 
 
 
Oil & Gas Drilling - 2.18%  
 
 
Transocean Inc. (A)
 
1
 
 
81
 
 
 
 
 
 
Oil & Gas Equipment & Services - 3.83%  
 
 
Schlumberger Limited
 
2
 
 
111
Smith International, Inc.
 
1
 
 
31
 
 
 
 
 
142
Other Diversified Financial Services - 1.81%  
 
 
JPMorgan Chase & Co.
 
2
 
 
67
 
 
 
 
 
 
Personal Products - 0.94%  
 
 
Estee Lauder Companies Inc. (The), Class A
 
1
 
 
35
 
 
 
 
 
 
Pharmaceuticals - 3.97%  
 
 
Abbott Laboratories
 
2
 
 
87
Roche Holdings Ltd, ADR
 
1
 
 
60
 
 
 
 
 
147
Restaurants - 1.08%  
 
 
YUM! Brands, Inc.
 
1
 
 
40
 
 
 
 
 
 
Semiconductors - 6.57%  
 
 
Altera Corporation
 
1
 
 
19
Broadcom Corporation, Class A (A)
 
3
 
 
106
Microchip Technology Incorporated
 
4
 
 
119
 
 
 
 
 
244
Soft Drinks - 3.10%  
 
 
Coca-Cola Company (The)
 
1
 
 
80
PepsiCo, Inc.
 
1
 
 
35
 
 
 
 
 
115
Specialized Finance - 1.05%
 
 
 
IntercontinentalExchange, Inc. (A)
 
––
*
 
39
 
 
 
 
 
 
Specialty Chemicals - 1.29%  
 
 
Ecolab Inc.
 
1
 
 
48
 
 
 
 
 
 
Systems Software - 3.53%  
 
 
Microsoft Corporation
 
4
 
 
131
 
 
 
 
 
 
TOTAL COMMON STOCKS - 88.61%
$
3,286
(Cost: $2,784)
 
 
 
 
 

SHORT-TERM SECURITIES - 10.14%
Principal
Master Note  
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
      0.117%, 1-1-10 (B)
$
376
 
$
376
(Cost: $376)
 
 
 
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 98.75%
 
$
3,662
(Cost: $3,160)
 
 
 
 
 

CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.25%
 
 
46

NET ASSETS - 100.00%
 
 
 
$
3,708

Notes to Schedule of Investments

Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following tables summarize the valuation of the Fund's investments by the above fair value hierarchy levels as of December 31, 2009:

 
Level 1
Level 2
Level 3
Assets
 
 
 
Investments in Securities
 
 
 
      Common Stocks
$
3,286
$
––
$   ––
      Short-Term Securities
––
376
––
           Total Investments in Securities
$
3,286
$
376
$   ––

*Not shown due to rounding.

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

(B)Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2009. Date shown represents reset date.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipt






ITEM 2. CONTROLS AND PROCEDURES.
   

(a)

The Registrant's Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant's management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
   

(b)

There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
 

ITEM 3. EXHIBITS.
   
 

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).
 

Attached hereto as Exhibit 99.CERT.
 

SIGNATURES
 
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 

Ivy Funds, Inc.

(Registrant)

 
   

By

 /s/Mara D. Herrington
 

Mara D. Herrington, Vice President and Secretary
 

Date: February 24, 2010
 
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   

By

 /s/Henry J. Herrmann
 

Henry J. Herrmann, Principal Executive Officer
 

Date: February 24, 2010
   
   

By

 /s/Joseph W. Kauten
 

Joseph W. Kauten, Principal Financial Officer
 

Date: February 24, 2010