Definitive Materials Filed by Investment Companies. (497)

Ivy Funds

Supplement dated March 17, 2014 to the

Ivy Emerging Markets Equity Fund (formerly, Ivy Pacific Opportunities Fund) Prospectus

dated February 11, 2014

The following replaces the Annual Fund Operating Expenses table and footnotes in the “Fees and Expenses” section on page 3:

Annual Fund Operating Expenses


(expenses that you pay each year as a % of the value of your investment)	Class A		Class B		Class C		Class I		Class R		Class Y
Management Fees		0.96%		0.96%		0.96%		0.96%		0.96%		0.96%
Distribution and Service (12b-1) Fees		0.25%		1.00%		1.00%		0.00%		0.50%		0.25%
Other Expenses		0.53%		0.98%		0.57%		0.26%		0.34%		0.26%
Total Annual Fund Operating Expenses		1.74%		2.94%		2.53%		1.22%		1.80%		1.47%
Fee Waiver and/or Expense Reimbursement ^3, 4		0.24%		0.44%		0.00%		0.00%		0.00%		0.00%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement		1.50%		2.50%		2.53%		1.22%		1.80%		1.47%

For Class A shares, a 1% contingent deferred sales charge (CDSC) is only imposed on Class A shares that were purchased at net asset value (NAV) for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase.

²	With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $750 at the close of business on September 26, 2014, and on the Friday prior to the last week of September each year thereafter, the account will be assessed an account fee of $20.

Through July 31, 2015, to the extent that the total annual ordinary fund operating expenses of the Class Y shares exceeds the total annual ordinary fund operating expenses of the Class A shares, Ivy Funds Distributor, Inc. (IFDI), the Fund’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Fund’s transfer agent, have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to ensure that the total annual ordinary fund operating expenses of the Class Y shares do not exceed the total annual ordinary fund operating expenses of the Class A shares, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated by IFDI, WISC or the Board of Trustees.

⁴

Through July 30, 2016, Ivy Investment Management Company (IICO), the Fund’s investment manager, IFDI and/or WISC have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses for Class A shares at 1.50% and Class B shares at 2.50%. Prior to that date, the expense limitation may not be terminated by IICO, IFDI, WISC or the Board of Trustees.

The following replaces the “Example” section on pages 3-4:

This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same, taking into account that expenses were reduced for the period indicated above. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:


Supplement		Prospectus		1


	1 Year		3 Years		5 Years		10 Years
Class A Shares	$	719	$	1,046	$	1,421	$	2,470
Class B Shares		653		1,125		1,568		2,911
Class C Shares		256		788		1,345		2,866
Class I Shares		124		387		670		1,477
Class R Shares		183		566		975		2,116
Class Y Shares		150		465		803		1,757

You would pay the following expenses if you did not redeem your shares:


	1 Year		3 Years		5 Years		10 Years
Class A Shares	$	719	$	1,046	$	1,421	$	2,470
Class B Shares		253		825		1,468		2,911
Class C Shares		256		788		1,345		2,866
Class I Shares		124		387		670		1,477
Class R Shares		183		566		975		2,116
Class Y Shares		150		465		803		1,757

The following replaces the “Portfolio Manager” section on page 6:

Portfolio Managers

Frederick Jiang, Senior Vice President of IICO, has managed the Fund since February 2004, and Jonas Krumplys, Vice President of IICO, has managed the Fund since March 2014.

The following replaces the “The Management of the Fund – Portfolio Management” section on page 14:

PORTFOLIO MANAGEMENT

Ivy Emerging Markets Equity Fund: Frederick Jiang and Jonas Krumplys are primarily responsible for the day-to-day management of Ivy Emerging Markets Equity Fund. Mr. Jiang has held his Fund responsibilities since February 2004, and had been assistant portfolio manager for the Fund since July 2003. He is Senior Vice President of IICO and Vice President of the Trust. From July 1999 to July 2003, he served as an investment analyst for IICO. Mr. Jiang holds a BA degree in Economics from the Central University of Finance and Economics, Beijing, China, and earned an MBA degree in Finance from New York University. Mr. Jiang is a Chartered Financial Analyst.

Mr. Krumplys has held his fund responsibilities for Ivy Emerging Markets Equity Fund since March 2014. He is Vice President of IICO and Vice President of the Trust. Mr. Krumplys joined IICO in November 2006 as an investment analyst. He has served as Assistant Vice President and assistant portfolio manager for other investment companies managed by IICO since April 2008. He earned a BS in architecture and an MS in chemical engineering from the University of Illinois, and holds an MBA with an emphasis in finance and marketing from the University of Chicago Graduate School of Business. Mr. Krumplys is a Chartered Financial Analyst.

Additional information regarding the portfolio managers, including information about the portfolio managers’ compensation, other accounts managed by the portfolio managers and the portfolio managers’ ownership of Fund securities, is included in the SAI.

Other members of IICO’s investment management department provide input on market outlook, economic conditions, investment research and other considerations relating to the Fund’s investments.