Ivy Funds Launches Two Unique, Income-Oriented Funds in Partnership with Apollo Credit Management
October 01 2015 - 6:45AM
Business Wire
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.
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Ivy FundsInvestor Contact:Nicole Russell,
913-236-1880VP, Director of Investor RelationsorMedia
Contact:Roger Hoadley, 913-236-1993VP, Communications
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