Ivy Asset Strategy Fund

Scorecard
4 / 5 Stars
Lipper
4 4 1 3 5
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
4 / 5 Stars
TheStreet.com
C (Hold)

U.S. News evaluated 121 World Allocation Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 21.81 percent over the past year, 10.76 percent over the past three years, 13.82 percent over the past five years, and 12.42 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 1.7%
1 Year 21.8%
3 Years (Annualized) 10.8%
5 Years (Annualized) 13.8%
10 Years (Annualized) 12.4%

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Summary

Investors need to be aware that the management team for Ivy Asset Strategy Fund is free to move in and out of many different types of asset classes.

As of March 05, 2014, the fund has assets totaling $34.27 billion. Its portfolio consists primarily of stocks.

During the recession, this world-allocation fund hunkered down with a number of defensive positions. Aside from building up its cash stake, the fund kept a fair amount of its assets in gold. It also added municipal, investment-grade corporate, and corporate high-yield bonds. As of the end of March, management still holds about a quarter of its assets in cash and a quarter of its assets in the emerging markets, mainly China. The fund's large cash position did hurt its returns somewhat in 2009, but the fund did outperform many of its peers in 2008's downturn. The fund has returned 21.81 percent over the past year and 10.76 percent over the past three years.

Historically, the fund has a solid track record, although management's relucatance to stay put in any given investment has raised some concerns. Says Morningstar, "In addition, the fund's volatility . . . has been steadily creeping up, leaving the fund more volatile than three quarters of its rivals. Lastly, the mercurial shifts in the portfolio's asset allocation can make it difficult to use it as a steady-Eddie portfolio anchor or as part of an asset-allocation program." The fund has returned 13.82 percent over the past five years and 12.42 percent over the past decade.

Investment Strategy

Value Line says, "On the equity side, management utilizes a blend of top-down and bottom-up approaches when selecting stocks. It concentrates on sectors that are likely to grow at a faster rate than the economy. Management also prefers firms with solid fundamentals and established industry positions that it believes are trading at a discount." The fund invests in assets around the globe and reshuffles quite a bit.

Role in Portfolio

Role in portfolio: Morningstar calls the fund a "supporting player."

Management

Michael Avery and Ryan Caldwell run the fund with the help of a deep pool of analysts. Avery has been with the fund since 1997, and Caldwell joined a decade later. 

Fees

Ivy Asset Strategy Fund has an expense ratio of 0.98 percent.

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Risk

As with any fund that favors stocks, this one comes with some risk. 

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 3 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 2 for one year, 4 for five years, and 2 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 4 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

In the annual Lipper/Barron’s Fund Families Survey for 2009, Ivy Investment Management ranks 39 out of 61 fund families surveyed.

Lipper

In the annual Lipper/Barron’s Fund Families Survey for 2009, Ivy Investment Management ranks 39 out of 61 fund families surveyed.

Lipper