Ivy Nomura VIP Balanced Series: Service

Objective And Strategy

Objective
Total return through a combination of capital appreciation and current income.

Strategy
The Fund looks at a number of factors in selecting securities for its Portfolio. On the equity side, the Fund typically looks at undervalued companies whose asset value or earnings power, it believes, is not reflected in the price of the stock. In selecting debt securities, the Fund seeks what it feels are high quality securities with minimal credit risk. The Fund uses the same analysis on the sell side to determine if a security is still undervalued or maintaining minimal credit risk.

Principal Risks

* This portfolio invests in securities of foreign issuers which involves risks not typically associated with domestic issuers, including currency fluctuations and the possibility of political and economic instability. Emerging markets involve risks in addition to those generally associated with foreign securities, because political and economic structures in many emerging markets may be undergoing significant evolution and rapid development.

* This portfolio invests (or may invest) in securities of companies with micro-, small-, or mid-capitalization. Any investment in micro-, small-, or mid-capitalization companies involves greater risk than that customarily associated with investments in larger, more established companies because of the greater business risks of smaller size, limited markets and financial resources, narrower product lines, and frequent lack of management depth. As such, micro- or small-cap companies may be more subject to erratic and abrupt market movements than securities of larger, more established companies.