IVY FUND
Ivy Asia Pacific Fund
Ivy Canada Fund
Ivy China Region Fund
Ivy Global Fund
Ivy Global Natural Resources Fund
Ivy Global Science & Technology Fund
Ivy International Fund
Ivy International Fund II
Ivy International Small Companies Fund
Ivy Latin America Strategy Fund
Ivy New Century Fund
Ivy Pan-Europe Fund
Supplement Dated January 20, 1998
to Prospectus Dated October 31, 1997
#
Ivy Latin America Strategy Fund has changed its name to Ivy
South America Fund.
Ivy New Century Fund has changed its name to Ivy Developing
Nations Fund.
#
The information presented for "Ivy Latin America Strategy
Fund" and "Ivy New Century Fund" in the "Annual Fund Operating
Expenses" table on page 3 is replaced in its entirety as follows:
TOTAL FUND
OPERATING
MANAGEMENT OTHER EXPENSES
FEES (AFTER 12B-1 EXPENSES (AFTER
EXPENSE SERVICE/ (AFTER EXPENSE
REIMBURSE- DISTRIBUTION EXPENSE REIM- REIMBURSE-
MENTS)* FEES BURSEMENTS)* MENTS)*
Ivy South America Fund
Class A 0.00% 0.25% 2.30%(4) 2.55%(4)
Class B 0.00% 1.00%(2) 2.33%(4) 3.33%(4)
Class C(1) 0.00% 1.00%(2) 2.46%(4) 3.46%(4)
Ivy Developing Nations Fund
Class A 0.38% 0.25% 1.82%(4) 2.45%(4)
Class B 0.38% 1.00%(2) 1.82%(4) 3.20%(4)
Class C(1) 0.38% 1.00%(2) 1.78%(4) 3.16%(4)
(4) Does not reflect the value of custody fee credits generated
by uninvested cash balances maintained by these Funds with their
custodian. Custody fee credits amounted to 0.36% for Ivy South
America Fund and 0.25% for Ivy Developing Nations Fund.
#
The following paragraph is substituted for the first
paragraph under "Ivy Latin America Strategy Fund" on page 18:
IVY SOUTH AMERICA FUND: The Fund's principal investment
objective is long-term capital growth. Consideration of current
income is secondary to this principal objective. Under normal
conditions the Fund invests at least 65% of its total assets in
securities issued in South America. Securities of South American
issuers include (a) securities of companies organized under the
laws of a South American country or for which the principal
securities trading market is in South America; (b) securities
that are issued or guaranteed by the government of a South
American country, its agencies or instrumentalities, political
subdivisions or the country's central bank; (c) securities of a
company, wherever organized, where at least 50% of the company's
non-current assets, capitalization, gross revenue or profit in
any one of the two most recent fiscal years represents (directly
or indirectly through subsidiaries) assets or activities located
in South America; or (d) any of the preceding types of securities
in the form of depository shares. The Fund may participate,
however, in markets throughout Latin America, which for purposes
of this Prospectus is defined as Mexico, Central America, South
America and the Spanish-speaking islands of the Caribbean, and it
is expected that the Fund will be invested at all times in at
least three countries. Under present conditions, the Fund expects
to focus its investments in Argentina, Brazil, Chile, Colombia,
Peru and Venezuela, which IMI believes are the most developed
capital markets in South America. The Fund does not expect to
concentrate its investments in any particular industry.
#
The following sentence is substituted for the second
sentence of the third paragraph under "Ivy Latin America Strategy
Fund" on page 18:
These include debt securities issued by South American
Governments ("Sovereign Debt").
#
The following sentence is substituted for the first sentence
of the fourth paragraph under "Ivy Latin America Strategy Fund"
on page 18:
To meet redemptions, or while the Fund is anticipating
investments in South American securities, the Fund may hold cash
or cash equivalents such as bank obligations (including
certificates of deposit and bankers' acceptances), commercial
paper, short-term notes and repurchase agreements.
#
The following sentence is substituted for the third sentence
of the fifth paragraph under "Ivy Latin America Strategy Fund" on
page 18:
The Fund will treat any South American securities that are
subject to restrictions on repatriation for more than seven days,
as well as any securities issued in connection with South
American debt conversion programs that are restricted to
remittance of invested capital or profits, as illiquid securities
for purposes of this limitation.
#
As of January 1, 1998, Advisor Class shares are offered
through a separate prospectus to limited categories of investors.
#
The first paragraph under "Organization and Management of
the Funds" on page 23 is replaced in its entirety as follows:
Each Fund, other than Ivy South America Fund, is organized
as a separate, diversified portfolio of the Trust, an open-end
management investment company organized as a Massachusetts
business trust on December 21, 1983. Ivy South America Fund is
organized as a non-diversified portfolio. The business and
affairs of each Fund are managed under the direction of the
Trustees. Information about the Trustees, as well as the Trust's
executive officers, may be found in the SAI. The Trust has an
unlimited number of authorized shares of beneficial interest, and
currently has 18 separate portfolios. Each Fund has four classes
of shares, designated as Class A, Class B, Class C and an Advisor
Class (the latter of which is offered by a separate prospectus).
Ivy Global Science & Technology Fund, Ivy International Fund II
and Ivy International Small Companies Fund each has a fifth class
of shares designated as Class I. Shares of each Fund entitle
their holders to one vote per share (with proportionate voting
for fractional shares). The shares of each class represent an
interest in the same portfolio of Fund investments. Each class of
shares, except for the Advisor Class and Class I, has a separate
Rule 12b-1 distribution plan and bears different distribution
fees. Class I shares are subject to lower administrative service
and transfer agency fees than the Funds' Class A, Class B, Class
C and Advisor Class shares. Each class of shares also has its
own sales charge and expense structure that may affect its
performance relative to a Fund's other classes of shares. Shares
of each class have equal rights as to voting, redemption,
dividends and liquidation but have exclusive voting rights with
respect to their Rule 12b-1 distribution plans.
#
The third paragraph in the "Portfolio Management" section
under "Investment Manager" on page 24 is replaced in its entirety
as follows:
- - Michael G. Landry is the Chairman and a Director of IMI and
the President and a Director of MIMI and the Chairman and a
Trustee of the Trust. Mr. Landry has headed these
organizations since 1987. Previously he was a Senior Vice
President and portfolio manager with Templeton
International. He has over 20 years of professional
investment experience. He has a degree in economics from
Carleton University. Mr. Landry is the portfolio manager for
Ivy Global Fund and Ivy Developing Nations Fund, and is a
member of the Ivy international portfolio management team.
[logo] Ivy Mackenzie
Ivy Funds - A Growing Global Force
Via Mizner Financial Plaza
700 South Federal Highway
Boca Raton, Florida 33432
1-800-456-5111
16INTABC0198
IVY FUND
Ivy Asia Pacific Fund
Ivy Canada Fund
Ivy China Region Fund
Ivy Global Fund
Ivy Global Natural Resources Fund
Ivy Global Science & Technology Fund
Ivy International Fund
Ivy International Fund II
Ivy International Small Companies Fund
Ivy Latin America Strategy Fund
Ivy New Century Fund
Ivy Pan-Europe Fund
Supplement Dated January 20, 1998
to Statement of Additional Information Dated
October 31, 1997
#
Ivy Latin America Strategy Fund has changed its name to Ivy
South America Fund.
Ivy New Century Fund has changed its name to Ivy Developing
Nations Fund.
#
As of January 1, 1998, the Funds (other than Ivy
International Fund) also offer Advisor Class shares, which are
described in a separate prospectus and statement of additional
information that may be obtained from the Distributor.
#
The following paragraph is substituted for the first
paragraph under "Ivy Latin America Strategy Fund":
IVY SOUTH AMERICA FUND: The Fund's principal investment
objective is long-term capital growth. Consideration of current
income is secondary to this principal objective. Under normal
conditions the Fund invests at least 65% of its total assets in
securities issued in South America. Securities of South American
issuers include (a) securities of companies organized under the
laws of a South American country or for which the principal
securities trading market is in South America; (b) securities
that are issued or guaranteed by the government of a South
American country, its agencies or instrumentalities, political
subdivisions or the country's central bank; (c) securities of a
company, wherever organized, where at least 50% of the company's
non-current assets, capitalization, gross revenue or profit in
any one of the two most recent fiscal years represents (directly
or indirectly through subsidiaries) assets or activities located
in South America; or (d) any of the preceding types of securities
in the form of depository shares. The Fund may participate,
however, in markets throughout Latin America, which for purposes
of this Prospectus is defined as Mexico, Central America, South
America and the Spanish-speaking islands of the Caribbean, and it
is expected that the Fund will be invested at all times in at
least three countries. Under present conditions, the Fund expects
to focus its investments in Argentina, Brazil, Chile, Colombia,
Peru and Venezuela, which IMI believes are the most developed
capital markets in South America. The Fund does not expect to
concentrate its investments in any particular industry.
#
The following sentence is substituted for the second
sentence of the third paragraph under "Ivy Latin America Strategy
Fund":
These include debt securities issued by South American
Governments ("Sovereign Debt").
#
The following sentence is substituted for the first sentence
of the fourth paragraph under "Ivy Latin America Strategy Fund":
To meet redemptions, or while the Fund is anticipating
investments in South American securities, the Fund may hold cash
or cash equivalents such as bank obligations (including
certificates of deposit and bankers' acceptances), commercial
paper, short-term notes and repurchase agreements.
#
The following sentence is substituted for the third sentence
of the fifth paragraph under "Ivy Latin America Strategy Fund":
The Fund will treat any South American securities that are
subject to restrictions on repatriation for more than seven days,
as well as any securities issued in connection with South
American debt conversion programs that are restricted to
remittance of invested capital or profits, as illiquid securities
for purposes of this limitation.
[logo] Ivy Mackenzie
Ivy Funds - A Growing Global Force
Via Mizner Financial Plaza
700 South Federal Highway
Boca Raton, Florida 33432
1-800-456-5111
