Fund Description: Ivy Focused Growth NextShares is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the Ivy NextShares, an open-end investment management company. INVESTMENT OBJECTIVE: The Ivy Focused Growth NextShares seeks to provide growth of capital. The Fund is an actively managed and thus does not seek to replicate the performance of a specified index. FUND STRATEGY: The Fund seeks to achieve its objective by investing primarily in a portfolio of common stocks issued by large-capitalization, growth-oriented companies with above-average levels of profitability and that the Fund’s investment manager believes have the ability to sustain growth over the long term. Although the Fund primarily invests in securities issued by large capitalization companies (defined as companies with market capitalizations of at least $10 billion at the time of acquisition), it may invest in securities issued by companies of any size. Growth-oriented companies are those whose earnings are likely to grow faster than the economy. The Fund is non-diversified, meaning that it may invest a significant portion of its total assets in a limited number of issuers. The investment manager primarily utilizes a bottom-up (researching individual issuers) strategy in selecting securities for the Fund and seeks to invest for the Fund in companies that it believes possess, or have the potential to achieve, dominant market positions and/or structural competitive advantages. The manager attempts to focus on companies operating in large, growing, addressable markets (generally, the total potential markets for their goods and services) whose competitive market position the manager believes will allow them to grow faster than the general economy. The key factors that are typically analyzed consist of: a company’s brand equity, proprietary technology, economies of scale or scope; the level of competitive intensity; the threat of substitute products; the interaction and bargaining power between a company, its customers, suppliers and competitors; the degree of fragmentation or concentration of market share in their industry; barriers to entry; strength of balance sheets and cash flows; and the quality of management. Many of the companies in which the Fund may invest have diverse operations, with products or services in foreign markets. FUND MANAGEMENT: The Fund is managed by Ivy Investment Management Company (IICO).