[IVY LEAF LOGO] Ivy Funds(R)
IVY GROWTH FUND
IVY GROWTH WITH INCOME FUND
IVY US BLUE CHIP FUND
IVY US EMERGING GROWTH FUND
SUPPLEMENT DATED JANUARY 19, 2000
TO PROSPECTUS DATED MAY 3, 1999
*
The two sentences under the section entitled "PRINCIPAL INVESTMENT
STRATEGIES" on page 2 for Ivy Growth Fund are replaced in their entirety as
follows:
"The Fund invests primarily in the equity securities of U.S. companies of
any size.
The Fund's portfolio is divided into two segments, each of which is managed
according to the investment style of its portfolio manager (such as growth or
value)."
*
The section entitled "Foreign security risk" under "Principal risks" on
page 2 is deleted in its entirety.
*
The first two paragraphs under the section entitled "Ivy Growth Fund" under
"Principal Strategies" on page 10 are replaced in their entirety as follows:
"IVY GROWTH FUND: The Fund seeks to achieve its principal objective of
long-term capital growth by investing primarily in mid- and large-cap U.S.
stocks, and seeks to provide additional diversification by investing a portion
of its assets in small-cap U.S. stocks.
The Fund is managed using a combination of investment styles. Approximately
one-half of the Fund's portfolio is comprised of companies that have had a
proven and consistent record of earnings, but whose prices appear to be low
relative to their underlying profitability. The other half of the Fund's
portfolio is invests in equity securities of small- and medium-sized US
companies that are in the early stages of their life cycles and that are
believed to have the potential to increase their sales and earnings at above
average rates."
*
The section entitled "Other risks" under "Principal Risks" on page 10 is
replaced in its entirety as follows:
"OTHER RISKS: Following is a description of the general risk
characteristics of the investment techniques that each Fund's adviser considers
important in achieving the Fund's investment objective or in managing its
exposure to risk (and that could therefore have a significant effect on the
Fund's returns). Other investment methods that the Funds may use (such as
derivative investments), but that are not likely to play a key role in their
overall investment strategies, are described in the Funds' Statement of
Additional Information (SEE BACK COVER PAGE FOR INFORMATION ON HOW YOU CAN
RECEIVE A FREE COPY).
*
The section entitled "FOREIGN SECURITIES" under "Risk Characteristics" on
page 11 is deleted in its entirely.
*
The first sentence under the section entitled "Ivy Growth Fund" under
"Portfolio management" on page 12 is replaced in its entirety as follows:
"IVY GROWTH FUND: The Fund's portfolio is divided into two different
segments, which are managed by the following individuals:"
*
The second bullet-point paragraph under the section entitled "Ivy Growth
Fund" under "Portfolio management" on page 12 is deleted in its entirety.
*
The paragraph below follows the last paragraph under the section entitled
"HOW TO ELIMINATE YOUR INITIAL SALES CHARGE" under "Additional purchase
information (Class A shares)" on page 15:
"With respect solely to Ivy US Emerging Growth Fund, former Class N
shareholders of Hudson Capital Appreciation Fund are exempt from the initial
sales charge on Class A shares of the Fund."
*
Via Mizner Financial Plaza
700 South Federal Highway
Boca Raton, Florida 33432
800.456.5111
www.ivymackenzie.com
e-mail: [email protected]
16IUSXX0999
<PAGE>
[Ivy Leaf Logo] Ivy Funds(R)
Ivy Growth Fund
Ivy Growth with Income Fund
Ivy US Blue Chip Fund
Ivy US Emerging Growth Fund
ADVISOR CLASS SHARES
Supplement Dated January 19, 2000
to Prospectus Dated May 3, 1999
*
The two sentences under the section entitled "PRINCIPAL INVESTMENT
STRATEGIES" on page 2 for Ivy Growth Fund are replaced in their entirety as
follows:
"The Fund invests primarily in the equity securities of U.S. companies of
any size.
The Fund's portfolio is divided into two segments, each of which is managed
according to the investment style of its portfolio manager (such as growth or
value)."
*
The section entitled "Foreign security risk" under "Principal risks" on
page 2 is deleted in its entirety.
*
The first two paragraphs under the section entitled "Ivy Growth Fund" under
"Principal Strategies" on page 10 are replaced in their entirety as follows:
"Ivy Growth Fund: The Fund seeks to achieve its principal objective of
long-term capital growth by investing primarily in mid- and large-cap U.S.
stocks, and seeks to provide additional diversification by investing a portion
of its assets in small-cap U.S. stocks.
The Fund is managed using a combination of investment styles. Approximately
one-half of the Fund's portfolio is comprised of companies that have had a
proven and consistent record of earnings, but whose prices appear to be low
relative to their underlying profitability. The other half of the Fund's
portfolio is invested in equity securities of small- and medium-sized US
companies that are in the early stages of their life cycles and that are
believed to have the potential to increase their sales and earnings at above
average rates."
*
The section entitled "Other risks" under "Principal Risks" on pages 10-11
is replaced in its entirety as follows:
"Other risks: Following is a description of the general risk
characteristics of the investment techniques that each Fund's adviser considers
important in achieving the Fund's investment objective or in managing its
exposure to risk (and that could therefore have a significant effect on the
Fund's returns). Other investment methods that the Funds may use (such as
derivative investments), but that are not likely to play a key role in their
overall investment strategies, are described in the Funds' Statement of
Additional Information (see back cover page for information on how you can
receive a free copy).
*
The section entitled "FOREIGN SECURITIES" under "Risk Characteristics" on
page 11 is deleted in its entirely.
*
The first sentence under the section entitled "Ivy Growth Fund" under
"Portfolio management" on page 12 is replaced in its entirety as follows:
"Ivy Growth Fund: The Fund's portfolio is divided into two different
segments, which are managed by the following individuals:"
*
The second bullet-point paragraph under the section entitled "Ivy Growth
Fund" under "Portfolio management" on page 12 is deleted in its entirety.
*
Via Mizner Financial Plaza
700 South Federal Highway
Boca Raton, Florida 33432
800.456.5111
www.ivymackenzie.com
e-mail: [email protected]
16IUSXX0100
