Ivy Nomura VIP Corporate Bond Series: Service

Objective And Strategy

Objective
Current income consistent with preservation of capital.

Strategy
The Fund utilizes a bottom-up, fundamental approach. Capitalizing on the portfolio management team's experience in the fixed income market, the managers focus on security selection and sector allocation. The managers also focus on relative value trading among fixed-income securities, and consider factors such as industry outlook, current and anticipated market and economic conditions, general levels of debt prices, and issuer operations.
Tax Inefficient Fund

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.