LOGO
Ivy Asia Pacific Fund
Ivy Developing Markets Fund
Ivy European Opportunities Fund
Ivy Global Fund
Ivy Global Natural Resources Fund
Ivy Global Science & Technology Fund
Ivy International Fund II
Ivy International Small Companies Fund
Ivy Pacific Opportunities Fund, formerly Ivy China Region Fund
Supplement Dated September 13, 2000
To Prospectus Dated May 1, 2000
(as supplemented July 26, 2000)
**
Ivy China Region Fund has changed its name to Ivy Pacific Opportunities Fund.
**
The Board of Trustees of Ivy Fund (the "Trust") has approved a proposed
reorganization involving the acquisition of the assets of Ivy Asia Pacific Fund
by and in exchange for shares of Ivy Pacific Opportunities Fund (formerly Ivy
China Region Fund), another series of the Trust. Shareholders of Ivy Asia
Pacific Fund will be asked to approve the proposed reorganization at a special
meeting of shareholders to be held on or about November 22, 2000. Detailed
information about the proposed transaction will be sent to Ivy Asia Pacific Fund
shareholders before the meeting.
**
The Board of Trustees of the Trust has approved an amendment to the Subadvisory
Agreement between Ivy Management, Inc. and Henderson Investment Management
Limited ("Henderson") whereby the percentage of assets of Ivy International
Small Companies Fund (the "Fund") managed by Henderson would increase from 50%
to 100%. Shareholders of the Fund will be asked to approve the Amendment at a
special meeting of shareholders to be held on or about November 6, 2000.
Detailed information about the Amendment will be sent to shareholders before the
meeting.
**
The "Ivy China Region Fund" section on page 2 is revised in its entirety as
follows:
IVY PACIFIC OPPORTUNITIES FUND
o INVESTMENT OBJECTIVE
The Fund's principal investment objective is long-term capital growth.
Consideration of current income is secondary to this principal objective.
o PRINCIPAL INVESTMENT STRATEGIES
The Fund invests at least 65% of its assets in the equity securities (including
common stock, preferred stock and securities convertible into common stock) of
companies that are traded mainly on Pacific region markets, issued by companies
organized under the laws of a Pacific region country or issued by any company
with more than half of its business in the Pacific region. Examples of Pacific
region countries include China, Hong Kong, Malaysia, Sri Lanka, Australia and
India. Although it is permitted to, the Fund does not currently anticipate
investing in Japan.
The Fund's management team uses an investment approach that focuses on analyzing
a company's financial statements and taking advantage of overvalued or
undervalued markets. Some of the Fund's investments may produce income (such as
dividends), although it is expected that any income realized would be
incidental.
o PRINCIPAL RISKS
The main risks to which the Fund is exposed in carrying out its investment
strategies are the following:
MANAGEMENT RISK: Securities selected for the Fund might not perform as well as
the securities held by other mutual funds with investment objectives that are
similar to those of the Fund.
MARKET RISK: Equity securities typically represent a proportionate ownership
interest in a company. The market value of equity securities can fluctuate
significantly even where "management risk" is not a factor. You could lose money
if you redeem your Fund shares at a time when the Fund's portfolio is not
performing as well as expected.
FOREIGN SECURITY AND EMERGING-MARKET RISK: Investing in foreign securities
involves a number of economic, financial and political considerations that are
not associated with the U.S. markets and that could affect the Fund's
performance unfavorably, depending upon prevailing conditions at any given time.
Among these potential risks are:
o greater price volatility;
o comparatively weak supervision and regulation of securities exchanges, brokers
and issuers;
o higher brokerage costs;
o fluctuations in foreign currency exchange rates and related conversion costs;
o adverse tax consequences; and
o settlement delays.
The risks of investing in foreign securities are more acute in countries with
developing economies. Since the securities markets of many Pacific region
countries may be considered "developing", the Fund may be exposed to one or more
of the following additional risks:
o securities that are even less liquid and more volatile than those in
more-developed foreign countries; o unusually long settlement delays;
o less stable governments that are susceptible to sudden adverse actions
(such as nationalization of businesses, restrictions on foreign ownership or
prohibitions against repatriation of assets);
o abrupt changes in exchange-rate regime or monetary policy;
o unusually large currency fluctuations and currency-conversion costs; and
o high national-debt levels (which may impede an issuer's payment of principal
and/or interest on external debt).
REGIONAL RISK: Investing in the Pacific region involves special risks beyond
those described above. For example, certain Pacific region countries may be
vulnerable to trade barriers and other protectionist measures that could have an
adverse effect on the value of the Fund's portfolio. The limited size of the
markets for some Pacific region securities can also make them more susceptible
to investor perceptions, which can impact their value and liquidity.
o WHO SHOULD INVEST*
The Fund may be appropriate for investors who are seeking long-term growth
potential in this sector of the world, but who can accept potentially dramatic
fluctuations in capital value in the short term.
*You should consult with your financial advisor before deciding whether the Fund
is an appropriate investment choice in light of your particular financial needs
and risk tolerance.
**
Paragraph 2 of the "Additional Information About Principal Investment Strategies
and Risks" section on page 20 regarding Ivy China Region Fund is revised in its
entirety as follows:
IVY PACIFIC OPPORTUNITIES FUND: The Fund seeks to achieve its investment
objective of long-term capital growth by investing primarily in securities
issued in countries throughout the Pacific region. Examples of Pacific region
countries include China, Hong Kong, Malaysia, Sri Lanka, Australia and India.
The Fund usually invests in at least three different countries, and does not
intend to concentrate its investments in any particular industry. The countries
in which the Fund invests are selected on the basis of a mix of factors that
include long-term economic growth prospects, anticipated inflation levels, and
the effect of applicable government policies on local business conditions. The
Fund is managed using an approach which focuses on financial ratios such as
price/earnings, price/book value, price/cash flow, dividend yield and
price/replacement cost. Securities purchased are believed to be attractively
valued on one or more of these measures relative to a broad universe of
comparable securities.
**
The "Investment Advisor" section under "Management" on page 25 is revised in
its entirety as follows:
Investment Advisor
Ivy Management, Inc. ("IMI")
Via Mizner Financial Plaza
700 South Federal Highway, Ste. 300
Boca Raton, Florida 33432
IMI provides business management services to the Funds and investment advisory
services to all Funds other than Ivy Global Natural Resources Fund. IMI is an
SEC-registered investment advisor with over $6.2 billion in assets under
management, and provides similar services to the other nine series of Ivy Fund.
For the Funds' fiscal year ending December 31, 1999, each Fund paid IMI a fee
that was equal to 1.00% of its average net assets. Ivy European Opportunities
Fund pays IMI a fee at the rate of 1.00% of the Fund's average net assets.
Henderson Investment Management Limited ("Henderson"), 3 Finsbury Avenue,
London, England EC2M 2 PA, serves as subadvisor to Ivy European Opportunities
Fund under an Agreement with IMI. For its services, Henderson receives a fee
from IMI that is equal, on an annual basis, to 0.22% of the Fund's average net
assets. Since February 1, 1999, Henderson has served as subadvisor with respect
to 50% of the net assets of Ivy International Small Companies Fund, for which
Henderson receives a fee from IMI that is equal, on an annual basis, to 0.22% of
that portion of the Fund's assets that Henderson manages. Henderson is an
indirect, wholly owned subsidiary of AMP Limited, an Australian life insurance
and financial services company located in New South Wales, Australia.
Mackenzie Financial Corporation ("MFC"), 150 Bloor Street West, Suite 400,
Toronto, Ontario, Canada M5S 3B5, serves as the investment adviser to Ivy Global
Natural Resources Fund and is responsible for selecting the Fund's portfolio
investments. MFC has been an investment counsel and mutual fund manager in
Toronto for more than 31 years, and as of March 31, 2000 had over $32 billion in
assets under management. For its services, MFC receives a fee from IMI that is
equal, on an annual basis, to 0.50% of the Fund's average net assets.
* *
The last paragraph of the "Portfolio Management" section under "Management"
regarding Ivy International Small Companies Fund on page 26 is revised in its
entirety as follows:
The Henderson team's investment process combines top down regional allocation
with a bottom up stock selection approach. Miranda Richards, Divisional
Director, International Investment, of Henderson, is the global small companies
strategist for Henderson and is responsible for the Fund's regional allocations.
Ms. Richards has over 10 years of economic and investment experience, and holds
a master's degree in economics and international relations from the University
of St. Andrews in Scotland. Regional allocations are based on factors such as
interest rates and current economic cycles, which are used to identify economies
with relatively strong prospects for real economic growth. Individual stock
selections are based largely on prospects for earnings growth.
Via Mizner Financial Plaza
700 South Federal Highway
Boca Raton, Florida 33432
800.456.5111
www.ivyfunds.com
E-mail: [email protected]
<PAGE>
LOGO
Ivy Asia Pacific Fund
Ivy Developing Markets Fund
Ivy European Opportunities Fund
Ivy Global Fund
Ivy Global Natural Resources Fund
Ivy Global Science & Technology Fund
Ivy International Fund II
Ivy International Small Companies Fund
Ivy Pacific Opportunities Fund, formerly Ivy China Region Fund
ADVISOR CLASS SHARES
Supplement Dated September 13, 2000
To Prospectus Dated May 1, 2000
(as supplemented July 26, 2000)
**
Ivy China Region Fund has changed its name to Ivy Pacific Opportunities Fund.
**
The Board of Trustees of Ivy Fund (the "Trust") has approved a proposed
reorganization involving the acquisition of the assets of Ivy Asia Pacific Fund
by and in exchange for shares of Ivy Pacific Opportunities Fund (formerly Ivy
China Region Fund), another series of the Trust. Shareholders of Ivy Asia
Pacific Fund will be asked to approve the proposed reorganization at a special
meeting of shareholders to be held on or about November 22, 2000. Detailed
information about the proposed transaction will be sent to Ivy Asia Pacific Fund
shareholders before the meeting.
**
The Board of Trustees of the Trust has approved an amendment to the Subadvisory
Agreement between Ivy Management, Inc. and Henderson Investment Management
Limited ("Henderson") whereby the percentage of assets of Ivy International
Small Companies Fund (the "Fund") managed by Henderson would increase from 50%
to 100%. Shareholders of the Fund will be asked to approve the Amendment at a
special meeting of shareholders to be held on or about November 6, 2000.
Detailed information about the Amendment will be sent to shareholders before the
meeting.
**
The "Ivy China Region Fund" section on page 2 is revised in its entirety as
follows:
IVY PACIFIC OPPORTUNITIES FUND
o INVESTMENT OBJECTIVE
The Fund's principal investment objective is long-term capital growth.
Consideration of current income is secondary to this principal objective.
o PRINCIPAL INVESTMENT STRATEGIES
The Fund invests at least 65% of its assets in the equity securities (including
common stock, preferred stock and securities convertible into common stock) of
companies that are traded mainly on Pacific region markets, issued by companies
organized under the laws of a Pacific region country or issued by any company
with more than half of its business in the Pacific region. Examples of Pacific
region countries include China, Hong Kong, Malaysia, Sri Lanka, Australia and
India. Although it is permitted to, the Fund does not currently anticipate
investing in Japan.
The Fund's management team uses an investment approach that focuses on analyzing
a company's financial statements and taking advantage of overvalued or
undervalued markets. Some of the Fund's investments may produce income (such as
dividends), although it is expected that any income realized would be
incidental.
o PRINCIPAL RISKS
The main risks to which the Fund is exposed in carrying out its investment
strategies are the following:
MANAGEMENT RISK: Securities selected for the Fund might not perform as well as
the securities held by other mutual funds with investment objectives that are
similar to those of the Fund.
MARKET RISK: Equity securities typically represent a proportionate ownership
interest in a company. The market value of equity securities can fluctuate
significantly even where "management risk" is not a factor. You could lose money
if you redeem your Fund shares at a time when the Fund's portfolio is not
performing as well as expected.
FOREIGN SECURITY AND EMERGING-MARKET RISK: Investing in foreign securities
involves a number of economic, financial and political considerations that are
not associated with the U.S. markets and that could affect the Fund's
performance unfavorably, depending upon prevailing conditions at any given time.
Among these potential risks are:
o greater price volatility;
o comparatively weak supervision and regulation of securities exchanges, brokers
and issuers;
o higher brokerage costs;
o fluctuations in foreign currency exchange rates and related conversion costs;
o adverse tax consequences; and
o settlement delays.
The risks of investing in foreign securities are more acute in countries with
developing economies. Since the securities markets of many Pacific region
countries may be considered "developing", the Fund may be exposed to one or more
of the following additional risks:
o securities that are even less liquid and more volatile than those in
more-developed foreign countries;
o unusually long settlement delays;
o less stable governments that are susceptible to sudden adverse actions
(such as nationalization of businesses, restrictions on foreign ownership or
prohibitions against repatriation of assets);
o abrupt changes in exchange-rate regime or monetary policy;
o unusually large currency fluctuations and currency-conversion costs; and
o high national-debt levels (which may impede an issuer's payment of principal
and/or interest on external debt).
REGIONAL RISK: Investing in the Pacific region involves special risks beyond
those described above. For example, certain Pacific region countries may be
vulnerable to trade barriers and other protectionist measures that could have an
adverse effect on the value of the Fund's portfolio. The limited size of the
markets for some Pacific region securities can also make them more susceptible
to investor perceptions, which can impact their value and liquidity.
o WHO SHOULD INVEST*
The Fund may be appropriate for investors who are seeking long-term growth
potential in this sector of the world, but who can accept potentially dramatic
fluctuations in capital value in the short term.
*You should consult with your financial advisor before deciding whether the Fund
is an appropriate investment choice in light of your particular financial needs
and risk tolerance.
**
Paragraph 2 of the "Additional Information About Principal Investment Strategies
and Risks" section on page 20 regarding Ivy China Region Fund is revised in its
entirety as follows:
IVY PACIFIC OPPORTUNITIES FUND: The Fund seeks to achieve its investment
objective of long-term capital growth by investing primarily in securities
issued in countries throughout the Pacific region. Examples of Pacific region
countries include China, Hong Kong, Malaysia, Sri Lanka, Australia and India.
The Fund usually invests in at least three different countries, and does not
intend to concentrate its investments in any particular industry. The countries
in which the Fund invests are selected on the basis of a mix of factors that
include long-term economic growth prospects, anticipated inflation levels, and
the effect of applicable government policies on local business conditions. The
Fund is managed using an approach which focuses on financial ratios such as
price/earnings, price/book value, price/cash flow, dividend yield and
price/replacement cost. Securities purchased are believed to be attractively
valued on one or more of these measures relative to a broad universe of
comparable securities.
**
The "Investment Advisor" section under "Management" on page 25 is revised in
its entirety as follows:
Investment Advisor
Ivy Management, Inc. ("IMI")
Via Mizner Financial Plaza
700 South Federal Highway, Ste. 300
Boca Raton, Florida 33432
IMI provides business management services to the Funds and investment advisory
services to all Funds other than Ivy Global Natural Resources Fund. IMI is an
SEC-registered investment advisor with over $6.2 billion in assets under
management, and provides similar services to the other nine series of Ivy Fund.
For the Funds' fiscal year ending December 31, 1999, each Fund paid IMI a fee
that was equal to 1.00% of its average net assets. Ivy European Opportunities
Fund pays IMI a fee at the rate of 1.00% of the Fund's average net assets.
Henderson Investment Management Limited ("Henderson"), 3 Finsbury Avenue,
London, England EC2M 2 PA, serves as subadvisor to Ivy European Opportunities
Fund under an Agreement with IMI. For its services, Henderson receives a fee
from IMI that is equal, on an annual basis, to 0.22% of the Fund's average net
assets. Since February 1, 1999, Henderson has served as subadvisor with respect
to 50% of the net assets of Ivy International Small Companies Fund, for which
Henderson receives a fee from IMI that is equal, on an annual basis, to 0.22% of
that portion of the Fund's assets that Henderson manages. Henderson is an
indirect, wholly owned subsidiary of AMP Limited, an Australian life insurance
and financial services company located in New South Wales, Australia.
Mackenzie Financial Corporation ("MFC"), 150 Bloor Street West, Suite 400,
Toronto, Ontario, Canada M5S 3B5, serves as the investment adviser to Ivy Global
Natural Resources Fund and is responsible for selecting the Fund's portfolio
investments. MFC has been an investment counsel and mutual fund manager in
Toronto for more than 31 years, and as of March 31, 2000 had over $32 billion in
assets under management. For its services, MFC receives a fee from IMI that is
equal, on an annual basis, to 0.50% of the Fund's average net assets.
* *
The last paragraph of the "Portfolio Management" section under "Management"
regarding Ivy International Small Companies Fund on page 26 is revised in its
entirety as follows:
The Henderson team's investment process combines top down regional allocation
with a bottom up stock selection approach. Miranda Richards, Divisional
Director, International Investment, of Henderson, is the global small companies
strategist for Henderson and is responsible for the Fund's regional allocations.
Ms. Richards has over 10 years of economic and investment experience, and holds
a master's degree in economics and international relations from the University
of St. Andrews in Scotland. Regional allocations are based on factors such as
interest rates and current economic cycles, which are used to identify economies
with relatively strong prospects for real economic growth. Individual stock
selections are based largely on prospects for earnings growth.
Via Mizner Financial Plaza
700 South Federal Highway
Boca Raton, Florida 33432
800.456.5111
www.ivyfunds.com
E-mail: [email protected]