Ivy's First Closed-End Fund Raises $317 Million in Initial Public Offering

Ivy's First Closed-End Fund Raises $317 Million in Initial Public Offering

Ivy High Income Opportunities Fund begins trading this week

OVERLAND PARK, Kan.--(BUSINESS WIRE)-- Ivy Funds announced that its management company's first-ever closed-end fund, Ivy High Income Opportunities Fund, began trading on the New York Stock Exchange after successfully completing its initial public offering.

The Fund, which trades under the symbol IVH, raised $317 million in its common share offering, excluding any exercise of the underwriters' option to purchase additional shares. If the underwriters exercise that option in full, the fund will have raised $364.6 million.

"We're gratified by investors' reception of Ivy's first entry into the closed-end marketplace," said Thomas W. Butch, president and CEO of Ivy Funds Distributor, Inc., distributor of Ivy Funds' open-end mutual funds.

The investment process for the Fund substantially replicates the investment process of the open-end Ivy High Income Fund. Both funds are managed by Bryan Krug, who has been with Ivy Funds for 12 years and this year was named a Rising Star of Mutual Funds by Institutional Investor. Krug is supported by six highly skilled credit analysts as well as the firm's global equity research team.

The Fund's investment objective is to seek to provide total return through a combination of a high level of current income and capital appreciation. The Fund will seek to achieve its objective by investing primarily in high yield corporate bonds of varying maturities, secured loans and other corporate fixed income instruments.

Ivy Investment Management Company (IICO) serves as the Fund's investment adviser. Lead managers of the underwriting syndicate were BofA Merrill Lynch, Citigroup and Morgan Stanley.

Ivy Funds offers a broad lineup of strategies covering all major asset categories, including international and domestic equity, specialty, fixed-income and money market strategies.

Ivy Funds Distributor, Inc. is an affiliate of Waddell & Reed Financial, Inc. (NYS: WDR) . Through its subsidiaries, Waddell & Reed Financial, Inc. provides investment management and financial planning services to clients throughout the United States.

The investment return, price, yields, market value and net asset value (NAV) of a fund's shares will fluctuate with market conditions. Closed-end funds frequently trade at a discount to their NAV, which may increase an investor's risk of loss. At the time of sale, your shares may have a market price that is above or below NAV, and may be worth more or less than your original investment. There is no assurance that the Fund will meet its investment objective.

An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle. Investors should carefully review and consider the Fund's investment objective, risk, charges and expenses before investing.

The prospectus, which contains this and other information about the Fund, should be read carefully before investing. A copy of the prospectus can be obtained from Ivy Funds by visiting www.ivyfunds.com or by contacting your financial advisor.

Investment return and principal value will fluctuate, and it is possible to lose money by investing in the Fund. Past performance is not a guarantee of future results. Please see the Fund's prospectus for more risk information.

Ivy Funds
Roger Hoadley, 913-236-1993
VP, Director of Communications

KEYWORDS: United States North America Kansas Missouri

INDUSTRY KEYWORDS:

The article Ivy's First Closed-End Fund Raises $317 Million in Initial Public Offering originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.