Ivy Funds today launched the Ivy Mid Cap Income Opportunities Fund, an equity portfolio focusing primarily on income-producing mid-capitalization companies.

The new fund, managed by veteran mid cap equity portfolio manager Kimberly Scott, CFA, along with co-manager Nathan Brown, CFA, is expected to focus on companies that the managers believe offer the opportunity to provide higher-than-average dividend yields relative to the overall mid-cap space.

“We saw a distinct opportunity within the mid-cap universe to provide investors with a product that helps provide a stable income stream and capital appreciation outside of the traditional equity growth category,” said Thomas W. Butch, president and CEO of Ivy Funds Distributor, Inc. “The fund also may provide diversification opportunities and act as a complement to pure equity growth funds.”

Butch added that Ivy Mid Cap Income Opportunities is further distinguished from Ivy Mid Cap Growth Fund by its focus on income and capital appreciation, versus a pure growth focus. The new fund generally will maintain a more concentrated portfolio, holding approximately 35 to 50 total holdings.

Scott continues to manage the Ivy Mid Cap Growth Fund, which she has managed for 13 years, and Brown serves as assistant portfolio manager on the Ivy Mid Cap Growth Fund. Both are industry veterans; Scott has 27 years of industry experience and 15 years with the firm, and Brown has 15 years of industry experience and 11 years with the firm.

According to its prospectus, Ivy Mid Cap Income Opportunities Fund seeks to achieve its objective of providing total return through a combination of current income and capital appreciation by investing primarily in a diversified portfolio of income-producing common stocks of mid-capitalization companies that the management team believes demonstrate favorable prospects for total return. The Fund intends to focus primarily on mid-capitalization companies believed to have the ability to sustain, and potentially increase dividends while providing capital appreciation over the long-term.

Ivy Investment Management Company is an affiliate of Waddell & Reed Financial, Inc. (NYSE:WDR). Through its subsidiaries, Waddell & Reed Financial, Inc. provides investment management and financial planning services to clients throughout the U.S. The firm had approximately $136 billion in total assets under management at June 30, 2013. Ivy Investment Management Company serves as investment advisor to the Ivy Funds. Ivy Funds Distributor, Inc. is principal underwriter and distributor to the Ivy Funds.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus, or if available, a summary prospectus, containing this and other information for any of Ivy Funds, call your financial advisor or visit www.ivyfunds.com. Please read the prospectus or summary prospectus carefully before investing.

Investment return and principal value will fluctuate, and it is possible to lose money by investing. Past performance is not a guarantee of future results.

Diversification cannot ensure a profit or protect against loss in a declining market.

Risk factors. As with any mutual fund, the value of the Fund’s shares will change, and you could lose money on your investment. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investing in mid-cap stocks may carry more risk than investing in stocks of larger, more well-established companies. The Fund’s emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform non-dividend paying stocks and the market as a whole over any period of time. In addition, there is no guarantee that the companies in which the Fund invests will declare dividends in the future or that dividends, if declared, will remain at current levels or increase over time. The amount of any dividend the company may pay may fluctuate significantly. In addition, the value of dividend-paying common stocks can decline when interest rates rise as fixed-income investments become more attractive to investors. This risk may be greater due to the current period of historically low interest rates. The Fund typically holds a limited number of stocks (generally 35 to 50). As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund’s net asset value than it would if the Fund invested in a large number of securities. These and other risks are more fully described in the fund's prospectus. Not all funds or fund classes may be offered at all broker/ dealers.