Ivy Funds Partners with Apollo Credit Management to Introduce Two Unique, Income-Oriented Funds
July 28 2015 - 7:05AM
Business Wire
Ivy Investment Management Company is launching two new
income-oriented mutual funds in partnership with Apollo Credit
Management that, once approved by the Securities and Exchange
Commission, are scheduled to become available in October. Both
funds will include allocation sleeves that will seek to follow
current Ivy Fund strategies and the Apollo Total Return Fund
strategy, which is Apollo’s flagship strategy in liquid alternative
credit.
- Ivy Apollo Strategic Income Fund
will include sleeves intended to replicate the Ivy High Income Fund
strategy and the Ivy Global Bond Fund strategy, with flexible
allocations to each of those strategies of between 10% and 70% of
the Fund’s total assets. In addition, there will be a 20% target
allocation (static) to a sleeve managed by Apollo consistent with
its Apollo Total Return strategy.
- Ivy Apollo Multi-Asset Income
Fund is expected to have a 50% allocation to fixed income and a
50% allocation to equities. It will include sleeves consistent with
the Apollo Total Return strategy (20% of the Fund), Ivy High Income
strategy (30% of the Fund), Ivy Global Equity Income strategy (40%
of the Fund) and Ivy Global Real Estate strategy (10% of the Fund),
which is subadvised by LaSalle Investment Management
Securities.
“These funds enable investors to seek income by gaining exposure
to a variety of asset classes in one investment,” said Thomas W.
Butch, President and CEO of Ivy Funds Distributor, Inc. “We’re
pleased to partner with Apollo, which brings experience in liquid
and alternative credit investments.”
This is Ivy’s first investment product collaboration with
Apollo. Apollo Credit Management is an affiliate of Apollo Global
Management, L.P. (NYSE: APO) (together with its consolidated
subsidiaries, “Apollo”). Founded in 1990, Apollo had approximately
$163 billion in assets under management as of March 31, 2015. Its
principal investment businesses focus on credit, private equity and
real estate.
“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 to bring
these distinctive funds to market.”
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.
The information in this release is not complete and may be
changed. A registration statement relating to these securities has
been filed with the Securities and Exchange Commission, but is not
effective. The Fund may not sell these securities until such
registration statement is effective. This message is not an offer
to sell these securities and is not a solicitation of an offer to
buy these securities in any jurisdiction where the offer or sale is
not permitted.
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 Ivy Investment Management Company (IICO) monitors the
investments of Apollo in addition to the overall management of the
Funds, including rebalancing the Funds’ target allocations, IICO
and Apollo make investment decisions for their investment sleeves
independently from one another. It is possible that the investment
styles used by Apollo 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.
Ivy Funds Distributor, Inc. (7/15)
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Ivy FundsInvestor Contact:Nicole Russell, 913-236-1880VP,
Investor RelationsorMedia Contact:Roger Hoadley, 913-236-1993VP,
Communications
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