|Average annual total returns at NAV as of September 30, 2013|
|Fund||YTD||1 yr||3 yr||5 yr||10 yr||Life|
|Waddell & Reed Advisors High Income – Class A shares||7.04%||11.01%||11.73 %||12.64%||8.25%||8.58%|
|Ivy Funds VIP||6.77%||10.64%||11.62%||13.36%||9.04%||8.05%|
|Ivy High Income – Class A shares||6.69%||10.40%||11.39%||13.62%||8.96%||8.45%|
Ivy Funds today announced that veteran high-yield portfolio manager William M. Nelson has assumed management of Ivy High Income Fund, effective immediately. Nelson adds management responsibility for Ivy High Income Fund to his existing responsibilities as portfolio manager of Ivy Funds VIP High Income and Waddell & Reed Advisors High Income Fund. He takes over Ivy High Income Fund from Bryan C. Krug, who had managed the fund since 2006 and recently accepted a position with another firm. The high income research team, which had supported both Nelson and Krug, remains intact. “Bill Nelson has a very strong track record as a portfolio manager in the high-yield space and we’re fortunate to have a manager with his skills to take the helm of Ivy High Income Fund,” said Henry J. Herrmann, CEO of Waddell & Reed Financial, Inc. (NYSE: WDR), parent firm to Ivy Investment Management Company, the investment advisor to Ivy Funds. “The transition is already underway and we expect it to be smooth.” Nelson joined the firm in 1995 as a fixed income investment analyst specializing in high-yield securities. He was appointed vice president and portfolio manager of Ivy Funds VIP High Income ($644 million in assets) in 1999 and portfolio manager of the Waddell & Reed Advisors High Income Fund ($2 billion in assets) in 2008. He has 25 years of industry experience. During Nelson’s tenure both funds have demonstrated strong performance. As of September 30, 2013, like the Ivy High Income Fund, Ivy Funds VIP High Income and Waddell & Reed Advisors High Income Fund have enjoyed top quintile performance across all standard time periods in their respective Lipper peer groups.*
Nelson now manages the entire suite of high-yield investment products at the firm, as he also takes over management of Ivy High Income Opportunities Fund (NYSE: IVH), a closed-end fund launched in May of this year.