Ivy Funds Launches Two Unique, Income-Oriented Funds in Partnership with Apollo Credit Management

Ivy Investment Management Company (IICO) today introduced two income-oriented mutual funds in partnership with Apollo Credit Management (Apollo). Both funds include allocation “sleeves” based on current Ivy Funds strategies and the Apollo Total Return Fund strategy, Apollo’s flagship in liquid alternative credit.

  • Ivy Apollo Strategic Income Fund includes flexible allocations of 10% to 70% to the High Income strategy sleeve and the Global Bond strategy sleeve, managed by IICO. It also will have a static 20% target allocation to the Total Return strategy sleeve managed by Apollo.
  • Ivy Apollo Multi-Asset Income Fund has a 50-50 allocation mix to fixed income and equities. It targets 20% to the Total Return strategy sleeve, 30% to the High Income strategy sleeve, 40% to the Global Equity Income strategy sleeve and 10% to the Global Real Estate Strategy sleeve, which is managed by LaSalle US.

Mark Beischel, Global Director of Fixed Income of IICO, has oversight of allocation levels and management of all allocation sleeves for Ivy Apollo Strategic Income Fund. For Ivy Multi-Asset Income Fund, Beischel shares oversight duties with Philip Sanders, Chief Investment Officer of IICO. This is Ivy Fund’s first investment product collaboration with Apollo.

“We’re pleased to partner with Apollo, which brings experience in liquid and alternative credit investments,” said Thomas W. Butch, President and CEO of Ivy Funds Distributor, Inc. “The combination of complementary but individual strategies may help investors diversify a portfolio while potentially accessing more income with lower volatility.”

Butch noted that the addition of the Apollo Total Return Strategy to the allocation range provides investors with access to a range of debt securities not available in traditional mutual funds, including structured credit, corporate credit and real estate of any liquidity or credit quality.

“We believe this represents a great opportunity for retail investors to gain exposure to a mix of asset categories that can’t easily be found in other traditional mutual fund products,” said Stephanie Drescher, partner and Global Head of Business Development at Apollo. “Apollo and Ivy Funds provide a compelling and complementary combination of capabilities and innovation.”

Ivy Funds offers a broad fund lineup covering all major asset categories, including international and domestic equity funds, specialty funds, fixed-income funds and money market funds.

Ivy Investment Management Company is an affiliate of Waddell & Reed Financial, Inc. (NYSE: WDR). Through its subsidiaries, Waddell & Reed Financial, Inc. provides investment management and financial planning services to clients throughout the U.S. The firm had approximately $121 billion in total assets under management at June 30, 2015. Ivy Investment Management Company serves as investment advisor to the Ivy Funds. Ivy Funds Distributor, Inc. is principal underwriter and distributor to the Ivy Funds.

Apollo Credit Management is an affiliate of Apollo Global Management, L.P. (NYSE: APO). Founded in 1990, Apollo had approximately $162 billion in assets under management as of June 30, 2015. Its principal investment businesses focus on credit, private equity and real estate.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus, or if available, a summary prospectus, containing this and other information for any of the Ivy Funds, visit www.ivyfunds.com.Please read the prospectus or summary prospectus carefully before investing.

Risk factors. The value of the Funds’ shares will change, and you could lose money on your investment. Although asset allocation among different sleeves and asset categories generally tends to limit risk and exposure to any one sleeve, the risk remains that the allocation of assets may skew toward a sleeve that performs poorly relative to the fund’s other sleeves, or to the market as a whole, which would result in the Funds performing poorly. While IICO monitors the investments of Apollo and LaSalle US in addition to the overall management of the Funds, including rebalancing the Funds’ target allocations, IICO, Apollo, and LaSalle US make investment decisions for their investment sleeves independently from one another. It is possible that the investment styles used by Apollo, LaSalle US, or IICO will not always complement each other, which could adversely affect the performance of the Funds. As a result, the Funds’ aggregate exposure to a particular industry or group of industries, or to a single issuer, could unintentionally be larger or smaller than intended.

International investing involves additional risks, including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. Investment risks associated with investing in real estate securities, in addition to other risks, include rental income fluctuation, depreciation, property tax value changes and differences in real estate market values. Fixed income securities are subject to interest rate risk and, as such, the net asset value of the Funds may fall as interest rates rise. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. Loans (including loan assignments, loan participations and other loan instruments) carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loans may be unsecured or not fully collateralized may be subject to restrictions on resale and sometimes trade infrequently on the secondary market.

These and other risks are more fully described in the Funds’ prospectus. Not all funds or fund classes may be offered at all broker/ dealers.

Contacts:

Ivy Funds
Investor Contact:
Nicole Russell, 913-236-1880
VP, Director of Investor Relations
or
Media Contact:
Roger Hoadley, 913-236-1993
VP, Communications

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