1. Why did I receive this check/payment?

Remediation payments are being made to shareholders of the following Ivy Funds (the “Funds”) determined to be entitled to remediation as a result of a net asset value (“NAV”) error in the Funds during specified time periods within the NAV error period of September 29, 2020 to May 28, 2021 (such specified time periods, the “Remediation Period”): Delaware Ivy Strategic Income Fund; Delaware Ivy High Income Fund; Delaware Ivy VIP High Income. Shareholders who held the Funds during the Remediation Period and were determined to be eligible for remediation payments are referred to as “Eligible Shareholders.”

2. Which Ivy Funds are affected?

• Delaware Ivy Strategic Income Fund
• Delaware Ivy High Income Fund
• Delaware Ivy VIP High Income

3. Why did I receive multiple checks?

Checks are issued to Eligible Shareholders at the account and registration level per Fund, therefore if you were a shareholder in multiple Funds, you may be eligible to receive multiple checks. Additionally, if you had an account transfer from one dealer or custodian to another, you may receive two checks as applicable to each account with each dealer or custodian.

4. What are the payments intended to remediate?

On May 24, 2021, and again on June 1, 2021, the value of a private equity holding (“New Cotai”) held by certain Ivy Funds was reduced due to a change in the methodology used to value such private equity holding. The new valuation methodology was implemented to be consistent with US generally accepted accounting principles (US GAAP) and consider available observable inputs related to the fair valuation of New Cotai and certain other private equity securities. During the Remediation Period, the NAV of certain Funds that held New Cotai was overstated due to the above methodology change. As a result, management concluded that Eligible Shareholders may be entitled to remediation due to the determination that their accounts or transactions were negatively impacted by the NAV error by more than $10.00 during the Remediation Period.

5. What if the amount of the distribution is very small?

The minimum distribution amount is $10.00. Amounts less than $10.00 will not be distributed.

6. Who calculated the remediation amounts?

Waddell & Reed Services Company (“Waddell & Reed”), working in consultation with its external consultants and advisers, developed a remediation allocation methodology. Waddell & Reed’s third-party administrator (SS&C GIDS) calculated and determined remediation payments in accordance with the approved remediation allocation methodology. Waddell & Reed and its external consultants jointly assessed and the company approved the remediation amounts prior to payment issuance.

7. What is my payment amount comprised of?

The payment to Eligible Shareholders will contain two components: an account level impact component and an interest component. The Statement to Shareholder Recipients is available on the Tax Information page and provides information to help you and your tax advisor determine the tax consequences of the payment.

8. What if I did not receive a payment but believe I should have. What should I do?

To be eligible for a remediation payment, shareholders must have been invested in the Funds between September 29, 2020 and May 28, 2021 and have been determined to have suffered a loss that exceeds $10.00 as a result of the NAV error. If you believe you should receive a check and did not, or you do not agree with the amount you received, please send a letter along with any supporting documentation, via fax, email, or mail as noted on the Contact Us page.

9. Is this a real check? Am I obligated to do anything if I cash this check?

This is a real check. By cashing this check you are not obligating yourself to do anything. You received a payment because you have been identified as an Eligible Shareholder. The check you receive is payment in full for your portion of the remediation payment and satisfaction of any claim you may have in connection with this matter.

Note: Please consult with your tax advisor to determine the tax consequences of cashing the check that you received, including the appropriate tax treatment for your particular situation.

10. My check(s) has been lost/destroyed. What should I do?

We can issue a replacement check within 90 days of the original check issuance date.

Please note, if we place a stop on the original check in response to your request, your original check will no longer be valid. If you subsequently locate the original check, please do not try to cash it as a stop has been placed on this payment. Presenting a check that has been stopped may result in a service fee charged by your own bank to your bank account. Waddell & Reed and SS&C GIDS are not responsible for any charges incurred as a result.

11. How long do I have to cash this distribution check?

Original checks will be valid 90 days from the date of issuance. Re-issued or replaced checks will be valid 30 days from the date of reissuance. Applicable expiration periods are printed on the face of the check.

12. What happens if I do not cash this check?

Monies that are not cashed or otherwise negotiated will be forfeited at the completion of the distribution.

13. I have an IRA/retirement account. What are the tax consequences for me?

You should consult with your financial advisor or tax professional prior to cashing this check to determine the potential tax consequences and appropriate tax treatment for your situation.

14. I am over 72 and received this payment because of my IRA. Is this counted as part of my Required Minimum Distribution (RMD)?

You should consult with your financial advisor or tax professional prior to cashing this check to determine the potential tax consequences and appropriate tax treatment for your situation.

15. Can the check received offset my RMD and allow me to keep more funds in my retirement account?

You should consult with your financial advisor or tax professional prior to cashing this check to determine the potential tax consequences and appropriate tax treatment for your situation.

16. I received a check made payable to “Current Custodian”. What do I do with this check?

Forward this check with a signed letter of instruction to your current custodian, instructing them to deposit the proceeds as a transfer of assets into your retirement account. As this is part of the Ivy Funds Remediation payment, this should not count towards your annual contribution limits. Be sure to include your current custodian account number with the correspondence and check your custodian statements to ensure that the payment has been credited to your account.

17. I received a check made payable to my Custodian (IRA only). What do I do with this check?

If your retirement account is still with the custodian listed on the check, forward this check with a signed letter of instruction to your current custodian, instructing them to deposit the proceeds as a transfer of assets into your retirement account. As this is part of the Ivy Funds Remediation payment, this should not count towards your annual contribution limits. Be sure to include your current account number with the correspondence.

18. What is a custodian?

A custodian is an agent, bank, trust company or other organization that holds and safeguards an individual’s or investment company’s assets for them.

19. What are the consequences of cashing a check made payable to my custodian (IRA only)?

You will not be able to cash this check as it is currently written because it is made payable to your custodian for your benefit.

If your retirement account is still with the custodian listed on the check, forward this check with a signed letter of instruction to your current custodian, instructing them to deposit the proceeds into your retirement account. Be sure to include your current account number with the correspondence.

You should consult with your financial advisor or tax professional to determine the potential tax consequences and appropriate tax treatment for your situation.

20. What if I have changed my custodian?

You may have the check issued to your new IRA custodian by taking the following steps.

We will reissue the new check to you so you can forward it to your current custodian instructing them to deposit the proceeds as a transfer of assets into your retirement account. As this is part of the Ivy Funds Remediation, this should not count towards your annual contribution limits. Be sure to include your current account number with the correspondence.

21. Can I request that my IRA check be made payable to myself?

If you wish to have this check made payable to yourself, the following is required:

1. A signed letter of instruction requesting it be made payable to you. In your letter of instruction please include your date of birth.
2. A completed Reissue IRA to Individual Distribution Form if the check is $600 or more. The Reissue IRA to Individual Distribution Form is located on the Tax Information page on this website or can be mailed to you upon request.
3. Your check with “VOID” written on it.
4. Send this information to the address located on the original check.

Please note that your original check has a 90 day void/stale date. Check re-issuances will only be allowed within the first 90 days from the original check date. All re-issued checks will display a 30 day stale date, and this stale date will not exceed the 120 days in total from the original check issue date. Checks presented for payment after the stale date has passed will not be honored. Bank fees charged to you by your bank for presenting a check(s) after the stale date are solely the responsibility of the presenter. Please allow 30 days from the date we receive your original request to receive the replacement check.

As always, you should consult with your financial advisor or tax professional to determine the potential tax consequences and appropriate tax treatment for your particular situation.

22. I received an IRA check made payable to a deceased family member. How can I have it made payable to myself?

If you wish to have this check made payable to yourself, the following is required:

1. A signed letter of instruction (if the check is for $250 or more the letter must have a medallion guarantee) requesting it be made payable to you. It is important that you include your date of birth and a completed Reissue IRA to Beneficiary Distribution Form if the check is $600 or more. The Reissue IRA to Beneficiary Distribution Form is located on the Tax Information page on this website or can be mailed to you upon request.
2. In addition, if you are not the spouse of the deceased or the beneficiary of the IRA, we will require “Evidence of Appointment” which is legal documentation that indicates that you are the authorized party to handle the decedent’s estate. Such documents are Letters Testamentary, Court Order, Letter of Administration, Letter of Appointment or copy of Last Will and Testament appointing beneficiaries or a copy of the designated IRA beneficiary form on file with the broker where your account was established.
3. A copy of the deceased’s death certificate. If the check amount is greater than $250, the death certificate must be certified.
4. Your check with “VOID” written on it.
5. Send this information to the address located on the original check.

Please allow 30 days from the date we receive your original request to receive the replacement check.

As always, you should consult with your financial advisor or tax professional to determine the potential tax consequences and appropriate tax treatment for your particular situation.

23. I received an IRA check made payable to my deceased wife/husband/family member. How can I deposit it into my IRA?

If you wish to have this check made payable to your IRA, the following is required:

1. A signed letter of instruction (if the check is for $250 or more the letter must have a Medallion Signature Guarantee) listing your current custodian, requesting it be made payable to your IRA.
2. If you are not the spouse of the deceased, Letters Testamentary, a copy of the Will or a copy of the designated IRA beneficiary form.
3. A copy of the deceased’s death certificate. (If the check is over $250 it must be a certified copy of the death certificate).
4. Your check with “VOID” written on it.
5. Send this information to the address located on the original check.

Please allow 30 days from the date we receive your original request to receive the replacement check. Forward this check with a signed letter of instruction to your current custodian, instructing them to deposit the proceeds into your retirement account.

As always, you should consult with your financial advisor or tax professional because the rules related to transfers and rollovers are complicated and failure to comply with those rules could subject the payment to tax and a 10% penalty.

24. My investment was in a tax-qualified plan, what should I do with this check?

If the check was made payable to the plan administrator and mailed to you and you are:

1. Still a participant in the tax qualified retirement plan, contact your Retirement plan administrator to coordinate the deposit of the check to your retirement plan.
2. No longer are a participant in the tax-qualified plan but you are a Participant in another tax-qualified retirement plan, then you may affect a “direct rollover” to another eligible plan. The distribution must be rolled over within 60 days after receipt to be tax-free. Contact your plan trustee or administrator to coordinate the rollover.
3. No longer a participant in the tax-qualified plan and you no longer are a participant in another tax-qualified retirement plan and you wish to have this check made payable to yourself, you will need to contact the Retirement Plan Trustee or Service Provider to negotiate the check you received. We are unable to reissue this check to you as it is considered Plan assets.
4. If your plan is no longer active or has been abandoned, we will require the following:
• A copy of the final plan form 5500 from your former Tax-Qualified Retirement Plan (may be found on www.freeerisa.com).
• A signed Abandoned Plan Affidavit. The Abandoned Plan Affidavit form is located on the Tax Information page on this website or can be mailed to you.
• A completed Reissue Non-IRA Distribution Form or Reissue Beneficiary Non-IRA Distribution Form, for checks $600 or more. The forms are located on the Tax Information page on this website or can be mailed to you.
• Your check with “VOID” written on it.
• Send this information to the address located on the original check.

Please consult with your financial advisor or tax professional to determine the potential tax consequences and appropriate tax treatment for your particular situation.

25. What is a Medallion Signature Guarantee and where can I get one?

A Medallion Signature Guarantee is a widely accepted way to protect you and the Funds by verifying the signatures on your request. Eligible participating members of the following programs may execute a Medallion Signature Guarantee: Securities Transfer Agents Medallion Program (STAMP); Stock Exchange Medallion Program (SEMP); and New York Stock Exchange, Inc., Medallion Signature Program (MSP). Many commercial banks, trust companies, credit unions, savings associations, brokerage firms, and registered broker-dealers can provide you with a Medallion Signature Guarantee. You should verify with the institution that it is an acceptable (eligible) guarantor for the Stamp2000 Medallion Program prior to signing the request. A Notary Public is not an acceptable guarantor.

26. What are the tax consequences from this distribution?

Due to the complexities involved, we have included additional information about the tax consequences of this distribution in a Statement to Shareholder Recipient’s which is available on the Tax Information page of this website. The Statement is not intended as tax advice but describes the tax reporting positions taken and points out some issues that an Eligible Shareholder should consider, including the remediation and interest components of the payment in addition to the type of account involved. This will be key information to review with your tax advisor.

NOTE: You should consult with your tax advisor to determine any federal, state, local, non-US or other tax issues you may need to address regarding the distribution.

27. Will I receive an IRS Form 1099 to use when filing my taxes?

You will receive a Form 1099-INT for the distribution if you are a U.S. person and the interest portion of your distribution is $600 or more. You will receive a Form 1042-S if (i) you are a Non-Resident Alien, (ii) we do not have a W-8 and W-9 to prove your tax status, or (iii) you are subject to FATCA reporting. The 1099-INT or 1042-S will be produced and mailed under separate cover by Miller Kaplan Arase, LLP (MKA) and reported to the IRS for the tax year in which the payment is made.

Note: You should consult with your tax advisor to determine the appropriate federal, state, local, non-US or other tax treatment for your particular situation.

28. How can I contact the Ivy Funds?

If you have questions related to the remediation please contact the administrator via phone, email or fax using the information located on the Contact Us page on this website. If you have questions related to your current investments please contact the Ivy Funds at the toll free number located on your most recent investment statement.