uploads///Portfolio Breakdown of the IVINX

The Ivy Global Growth Fund’s Portfolio Moves in YTD 2016



Ivy Global Growth Fund overview

The Ivy Global Growth Fund (IVINX) is not like most funds in this review. This is due to its inclination toward US stocks.

The fund manager looks for companies that appear to be “competitively well-positioned, gaining market share, have the potential for long-term growth and/or operate in regions or countries that possess attractive growth characteristics.”

The fund has a large-cap bias, though it can invest in companies of any size. Fund literature states that normally, 40% of the fund’s assets would be invested in stocks of foreign issuers. At any time, the fund aims to remain invested in at least three countries and would hold 50 to 70 stocks. Bottom-up stock selection is followed by top-down global economic analysis.

The fund’s assets were spread across 51 holdings in May 2016 and was managing $499.2 million in assets. In March, its equity holdings included Amazon (AMZN), Visa (V), Carnival (CCL), HCA Holdings (HCA), and Rockwell Collins (COL).

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Portfolio changes in the Ivy Global Growth Fund

The healthcare and information technology sectors are quite close in terms of the percentage of the portfolio that is allocated to them. These two sectors alone form a combined 51% of the assets. Consumer discretionary stocks are a distant third and form one-fifth of the assets. The fund is not invested in the materials and utilities sectors.

Foreign stocks form only 37.5% of IVINX, while US stocks account for 58.8% of the portfolio. Combined with cash and equivalent investment, the overall exposure to the US stands at 61%, making it the largest invested geography. China is a distant second, forming less than one-tenth of the fund’s assets, and Germany rounds off the top three invested countries.

Several sectors that IVINX invests in have seen a visible change in composition in the past 12 months ended May 2016. Exposure to consumer discretionary stocks has come down sharply from a year ago while exposure to financials has been halved. During this same period, healthcare and tech stocks have seen a noticeable rise in portfolio weight.

How has the Ivy Global Growth Fund – Class A (IVINX) fared in YTD 2016? Let’s look at that in the next article.


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