NOTES TO FINANCIAL STATEMENTS
Ivy Latin America Strategy Fund (the Fund) is a series of shares of Ivy Fund. The shares of beneficial interest are
assigned no par value and an unlimited number of shares of Class A and Class B are authorized. Ivy Fund was
organized as a Massachusetts business trust under a Declaration of Trust dated December 21, 1983 and is
registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation
of its financial statements. The policies are in conformity with generally accepted accounting principles.
Preparation of the financial statements includes the use of management estimates.
a. Securities valuation -- Securities for which market quotations are readily available are stated at market value.
Short-term obligations and commercial paper are valued at amortized cost, which approximates market value.
For valuation purposes, quotations of foreign securities in foreign currencies are translated into U.S. dollar
equivalents using the foreign exchange quotation in effect.
All other securities are valued at their fair value as determined in good faith by the Valuation Committee of the
Board of Trustees (the Board). Securities so valued amounted to $30,619 (1.13% of net assets) and have been
noted in the investment portfolio as of December 31, 1995.
b. Securities transactions and investment income -- Securities transactions are accounted for on the trade date.
Dividend income is recorded on the ex-dividend date, and interest income is accrued on a daily basis. Realized
gains and losses from securities transactions are calculated on an identified cost basis.
c. Federal income taxes -- The Fund is a separate taxable entity and intends to qualify for tax treatment
applicable to regulated investment companies under the Internal Revenue Code, as amended, and,