Daily News: October 30, 2014

Ivy Fund Enters into Lending Agreement with Pershing

Ivy High Income Opportunities Fund announced that it entered into a lending agreement with Pershing, member FINRA, NYSE, SIPC, a wholly owned subsidiary of The Bank of New York Mellon Corporation, effective October 29, 2014. The agreement is substantially similar to the Fund’s previous margin financing agreement with Bank of America Merrill Lynch (BAML), except that under certain limited circumstances, Pershing may increase the interest rate and decrease the available margin to allow it to comply with new bank capital regulations, and replaces the previous agreement. The Fund received notice earlier this year that BAML had decided to raise the terms of margin financing for closed-end funds.

Additional information about the Fund and its use of leverage can be found in the Fund’s annual and semi-annual shareholder reports.

Ivy High Income Opportunities Fund’s investment objective is to seek to provide total return through a combination of a high level of current income and capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in a portfolio of high-yield corporate bonds of varying maturities and other fixed income instruments of predominantly corporate issuers, including first- and second-lien secured loans. There can be no assurance that the Fund will achieve its investment objective.

The Fund is a non-diversified, closed-end management investment company. The price of the Fund’s shares will fluctuate with market conditions and other factors. Closed-end funds frequently trade at a discount from their net asset values (NAVs), which may increase an investor’s risk of loss. At the time of sale, shares may have a market price that is below NAV, and may be worth less than the original investment upon their sale.

Ivy Investment Management Company (IICO) serves as the Fund’s investment adviser. IICO is a wholly owned subsidiary of Waddell & Reed Financial.