Fund Description: Ivy Focused Value 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 Value NextShares seeks to provide capital appreciation with a secondary objective of providing current income. 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 objectives by investing primarily in the common stocks of companies that the Fund’s investment manager believes are undervalued, trading at a significant discount relative to the intrinsic value of the company as estimated by the investment manager and/or are out of favor in the financial markets but have a favorable outlook for capital appreciation. The Fund may invest in securities issued by companies of any size and market capitalization. The Fund is non-diversified, meaning that it may invest a significant portion of its total assets in a limited number of issuers. For example, the Fund typically holds a limited number of stocks To identify securities for the Fund, the manager primarily utilizes fundamental, bottom-up (researching individual issuers) research while considering top-down (assessing the market environment) and quantitative analyses. The manager primarily determines the estimated intrinsic value of companies based on cash flow generation, but may consider other valuation factors, such as price to earnings and price to book value. and also considers other operational factors of a company, including, among others, asset growth, changes in share count, and changes in working capital. The Fund emphasizes companies that the manager believes have clearly identifiable catalysts that will help the companies achieve their estimated intrinsic values. A catalyst is an identifiable factor such as an event, a particular circumstance or a company’s characteristic that might lead to improved valuations of that company’s stock. A catalyst could come from within the company in the form of new management, company restructuring, or certain operational enhancements (such as the introduction of new products or services, or offering products in new markets). A catalyst also could be an external factor, such as improvement in industry conditions, a regulatory change, or a recent sharp decline in stock price that appears to be the result of a short-term market overreaction to negative news. 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).