Company Press Release

OVERLAND PARK, KS, June 4, 2012/- Effective today, Ivy Funds has expanded its global product line, launching a new Ivy Global Equity Income Fund and modifying an existing fund to bring to market Ivy Global Income Allocation Fund. Together, these steps further enhance Ivy Funds' global product lineup, providing additional global equity and allocation choices for investors and financial advisors. The changes include:

Ivy International Balanced Fund becomes Ivy Global Income Allocation Fund: Under its new moniker and expanded investment mandate, this fund, which has an objective of seeking total return through a combination of current income and capital appreciation, can go anywhere in the world to find the most compelling equity and fixed-income investment opportunities. Until now, because the fund was an international rather than a global fund, the fund's manager was unable to take advantage of investment opportunities in the United States. The fund was incepted in 1994 and will carry forward its performance history.

Ivy Global Equity Income Fund: A new fund that invests in equities, primarily in developed markets, issued by companies that the portfolio managers believe may generate a reasonable level of current income and that demonstrate favorable prospects for total return. It may invest in U.S. and non-U.S. firms of any size, though it plans to primarily invest in large-cap names. The global nature of this fund makes it one of the first in the industry to offer a truly global equity income opportunity.

These changes mean that the Ivy Funds family offers a comprehensive lineup for a range of investor needs, including flexible portfolio funds that can invest in any asset class around the world; allocation funds that typically seek to maintain a consistent balance of investments within ranges defined by each fund's prospectus; and funds designed to generate consistent income, such as through dividend-paying stocks or high-yield and municipal bonds.

"Investors increasingly are looking for dividend-income potential, given today's secular demographic realities and low-interest rate, slow-growth economic environment," said Thomas W. Butch, president and CEO of Ivy Funds Distributor, Inc. "These additions to the Ivy Funds lineup give investors the ability to pursue dividend income through investments around the world very efficiently, whether they want dividend paying equities or a broader allocation approach that includes fixed income."

Ivy Global Income Allocation Fund is co-managed by John Maxwell, CFA, who has 20 years of industry experience and has managed the former Ivy International Balanced Fund for the last three years, and W. Jeffery Surles, CFA, who has 11 years of industry experience and has been a fixed income investment analyst with Ivy Funds for five years. Robert Nightingale, who has been with Ivy Funds for 16 years, is assistant portfolio manager on the fund.

Ivy Global Equity Income Fund is co-managed by Maxwell and Nightingale.

By prospectus, Ivy Global Income Allocation Fund will ordinarily invest at least 35 percent of its total assets in equity investments, at least 25 percent in fixed-income securities and may invest up to 35 percent of its total assets in non-investment grade (low-rated) debt securities, which could provide additional income for shareholders, albeit at greater risk. Its benchmark is a 60 percent/40 percent blend of the MSCI World High Dividend Yield Index and the Barclays Multiverse Index, a custom blend index. Barclays Multiverse Index is comprised of securities that represent the global bond market. MSCI World High Dividend Yield Index is designed to reflect the performance of equities (excluding REITs) with higher than average dividend yields that are both sustainable and persistent. Ivy Global Equity Income Fund, according to its prospectus, will invest at least 80 percent of its net assets in equity securities, with a focus on dividend-paying securities around the globe. Its benchmark is the MSCI World High Dividend Yield Index.

Industry analysts report that equity income funds have grown in demand as investors reach for yield. According to Strategic Insight, for example, investors directed more than $32 billion into equity income funds in 2011, one of the only positive flow-garnering equity categories for the year.

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 Funds Distributor, Inc. 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 United States. Ivy Investment Management Company serves as investment advisor to the Ivy Funds. Ivy Funds Distributor, Inc. serves as principal underwriter and distributor to the Ivy Funds.

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, call your financial advisor or visit www.ivyfunds.com. Please read the prospectus or summary prospectus carefully before investing.

Investment return and principal value will fluctuate, and it is possible to lose money by investing. Past performance is not a guarantee of future results.

Consider all factors. An investment in the Funds is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. 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. 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 high-income securities may carry a greater risk of nonpayment or interest or principal than higher-rated bonds. Dividend-paying investments may not experience the same price appreciation as non-dividend paying instruments.

Dividend-paying companies may not pay a dividend or the dividend may be less than expected. 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.