Release Date: 06-30-2018

Ivy VIP High Income

Investment Strategy from investment’s prospectus Portfolio Analysis as of 03-31-18

The investment seeks total return through a combination of high current income and capital appreciation. The fund invests primarily in a diversified portfolio of high-yield, high-risk, fixed-income securities, including secured and unsecured loan assignments, loan participations and other loan instruments (loans), of U.S. and foreign issuers, the risks of which are, in the judgment of Ivy Investment Management Company (IICO), the Portfolio's investment manager, consistent with the Portfolio's objective.

Past name: Ivy VIP High Income.

Category Description: High Yield BondHigh-yield bond portfolios concentrate on lower-quality bonds. Because such bonds are riskier than those of higher-quality companies, they offer higher coupons to attract investors. Therefore, these funds generally offer higher yields than other types of funds, but they are also more vulnerable to economic and credit risk. While defaults have been rare lately, these funds can suffer losses from recessions and bankruptcies.

OperationsFund Inception Date 07-13-87Initial Share Class Inception Date 07-13-87Advisor Ivy Investment Management CoSubadvisor —

Fees and Expenses as of 04-30-18Gross Prospectus Expense Ratio 0.91%Net Prospectus Expense Ratio 0.91%

Waiver Data Type Exp.Date %— — — —

Portfolio Manager(s)Chad A. Gunther. M.B.A., Washington University. B.S., University of Kansas. Since 2014.

Composition as of 03-31-18 % Assets

•U.S. Stocks 1.12

•Non-U.S. Stocks 0.07

•Bonds 87.27

•Cash 5.72

•Other 5.81

Top 20 Holdings as of 03-31-18 % AssetsiShares iBoxx $ High Yield Corp Bd ETF 2.72New Cotai, LLC and New Cotai Capital Corp 0.11% 05-01-19 2.41Laureate Education, Inc. 0.08% 05-01-25 1.99OLYMPUS MERGER SUB INC 0.08% 10-15-25 1.64Jo-Ann Stores, Inc. 0.1% 10-15-19 1.52

Kronos Acquisition Holdings Inc 0.09% 08-15-23 1.44Informatica Corporation 0.07% 07-15-23 1.41BakerCorp International Inc 0.08% 06-01-19 1.41Altice SA 0.08% 05-15-22 1.40TMX Finance LLC/TitleMax Finance Corp. 0.08% 09-15-18 1.30

Tibco Software Inc 0.11% 12-01-21 1.19VTR Finance B.V. 0.07% 01-15-24 1.18NFP Corp. 0.07% 07-15-25 1.13SFR Group 0.07% 05-01-26 1.09Simmons Foods, Inc 0.06% 11-01-24 1.08

Sprint Corporation 0.07% 09-15-21 1.08Mayfield Agency Borrower Inc. (Ice Libor Plus 450 Bps) 02-28-25

0.93

West Corp. (3-Month Ice Libor Plus 400 Bps) 10-10-24 0.92Kca Deutag Alpha Ltd. (Ice Libor Plus 525 Bps) 05-16-20 0.92Targa Resources Co 9.5% 0.92

Total Number of Stock Holdings 8Total Number of Bond Holdings 231Annual Turnover Ratio % 52.00Total Fund Assets ($mil) 941.29

Volatility AnalysisInvestment

Low Moderate High

Category

In the past, this investment has shown a relatively small range of fluctuations relative to other investments. Based on this measure, currently more than two thirds of all investments have shown higher levels of risk. Consequently, this investment may appeal to investors looking for a conservative investment strategy.

Morningstar Style BoxTM as of 03-31-18

Average Effective Duration 2.80Average Effective Maturity 3.40

Risk Measures as of 06-30-18 Port Avg BC Aggr Category3 Yr Std Dev 5.52 2.65 4.923 Yr Sharpe Ratio 0.76 0.37 0.763 Yr Alpha 4.00 — 3.243 Yr Beta 0.18 — 0.263 Yr R-squared 0.72 — 3.22

Morningstar Sectors as of 03-31-18 %Fund %CategoryGovernment 0.00 3.75Corporate 93.96 87.43Securitized 0.00 1.56Municipal 0.00 0.01Cash and Equivalents 6.04 4.80Other 0.00 2.45

Credit Analysis as of 12-31-17 %Bonds

AAA 0

AA 0

A 0

BBB 0

BB 16

B 50

Below B 30

NR/NA 4

NotesThis material is authorized for client use only when preceded or

accompanied by a Disclosure Statement, a product prospectus, a fund

prospectus and/or informational brochure containing more complete

information. These can be obtained from your investment professional

and should be read carefully before investing or sending money.

NOT A DEPOSIT — NOT FDIC INSURED — NOT INSURED BY ANY

FEDERAL GOVERNMENT AGENCY — NOT GUARANTEED BY THE

INSTITUTION — MAY GO DOWN IN VALUE

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