Edgar Filing: Ivy High Income Opportunities Fund

Ivy High Income Opportunities Fund

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-22800

Ivy High Income Opportunities Fund

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

Mara D. Herrington

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)

Registrant’s telephone number, including area code: 913-236-2000

Date of fiscal year end: September 30

Date of reporting period: June 30, 2014

ITEM 1. SCHEDULE OF INVESTMENTS.

Insert Schedule of Investments file here: Ivy High Income Opportunities Fund.

SCHEDULE OF INVESTMENTS

Ivy High Income Opportunities Fund (in thousands)

JUNE 30, 2014 (UNAUDITED)


CORPORATE DEBT SECURITIES	Principal		Value

Advertising – 0.3%
Lamar Media Corp.,
5.375%, 1–15–24 (A)	$	977	$	1,011


Aerospace & Defense – 3.3%
Silver II Borrower SCA and Silver II U.S. Holdings,
7.750%, 12–15–20 (A)(H)		6,000		6,420
TransDigm, Inc.:
6.000%, 7–15–22 (A)		2,154		2,213
6.500%, 7–15–24 (A)		2,319		2,415

				11,048


Agricultural Products – 1.7%
American Seafoods Group LLC,
10.750%, 5–15–16 (A)(H)		5,787		5,772


Air Freight & Logistics – 0.2%
TRAC Intermodal LLC and TRAC Intermodal Corp.,
11.000%, 8–15–19 (H)		711		814


Aluminum – 1.1%
Constellium N.V.,
5.750%, 5–15–24 (A)		606		636
Wise Metals Group LLC,
8.750%, 12–15–18 (A)		1,221		1,325
Wise Metals Intermediate Holdings,
9.750%, 6–15–19 (A)(B)		1,660		1,693

				3,654


Apparel Retail – 0.9%
Gymboree Corp. (The),
9.125%, 12–1–18		488		326
Nine West Holdings, Inc.,
8.250%, 3–15–19 (A)		2,610		2,623

				2,949


Application Software – 0.9%
ACI Worldwide, Inc.,
6.375%, 8–15–20 (A)		971		1,022
Infor Software Parent LLC and Infor Software Parent, Inc.,
7.125%, 5–1–21 (A)(B)		2,006		2,051

				3,073


Auto Parts & Equipment – 2.4%
IDQ Holdings, Inc.,
11.500%, 4–1–17 (A)		132		146
Schaeffler Finance B.V.,
4.250%, 5–15–21 (A)		1,233		1,233
Schaeffler Holding Finance B.V.:
6.875%, 8–15–18 (A)(B)(C)		EUR4,075		5,873
6.875%, 8–15–18 (A)(B)(H)	$	732		771

				8,023


Automobile Manufacturers – 0.4%
Group 1 Automotive, Inc.,
5.000%, 6–1–22 (A)		371		371
Navistar International Corp.,
8.250%, 11–1–21		997		1,041

				1,412


Automotive Retail – 0.2%
Sonic Automotive, Inc.,
5.000%, 5–15–23		819		805


Broadcasting – 3.5%
CBS Outdoor Americas, Inc.:
5.250%, 2–15–22 (A)		350		360
5.625%, 2–15–24 (A)		350		361


Clear Channel Worldwide Holdings, Inc., Series A,
7.625%, 3–15–20		119	127
Clear Channel Worldwide Holdings, Inc., Series B,
7.625%, 3–15–20 (H)		10,000	10,787
Spanish Broadcasting System, Inc.,
12.500%, 4–15–17 (A)		160	178

			11,813


Building Products – 0.9%
CPG Merger Sub LLC,
8.000%, 10–1–21 (A)		1,061	1,117
Ply Gem Industries, Inc.,
6.500%, 2–1–22 (A)		1,051	1,014
Roofing Supply Group, LLC and Roofing Supply Finance, Inc.,
10.000%, 6–1–20 (A)		908	967

			3,098


Cable & Satellite – 11.4%
Altice S.A.:
7.250%, 5–15–22 (A)(C)		EUR152	221
7.750%, 5–15–22 (A)	$	1,390	1,484
Cablevision Systems Corp.,
5.875%, 9–15–22 (H)		10,000	10,187
CCO Holdings LLC and CCO Holdings Capital Corp.:
5.250%, 3–15–21		206	211
5.250%, 9–30–22		276	280
5.125%, 2–15–23		276	277
5.750%, 9–1–23		69	72
5.750%, 1–15–24		276	282
DISH DBS Corp.:
6.750%, 6–1–21 (H)		7,500	8,549
5.875%, 7–15–22		2,000	2,170
Numericable Group S.A.:
4.875%, 5–15–19 (A)		307	315
5.375%, 5–15–22 (A)(C)		EUR152	221
6.000%, 5–15–22 (A)	$	825	858
5.625%, 5–15–24 (A)(C)		EUR152	222
6.250%, 5–15–24 (A)	$	295	308
Sirius XM Radio, Inc.:
5.875%, 10–1–20 (A)		905	957
5.750%, 8–1–21 (A)		2,513	2,639
4.625%, 5–15–23 (A)(H)		4,586	4,391
VTR Finance B.V.,
6.875%, 1–15–24 (A)		3,584	3,847
Wave Holdco LLC and Wave Holdco Corp.,
8.250%, 7–15–19 (A)(B)		299	307

			37,798


Casinos & Gaming – 1.5%
Gateway Casinos & Entertainment Ltd.,
8.500%, 11–26–20 (A)(C)		CAD822	787
MCE Finance Ltd.,
5.000%, 2–15–21 (A)	$	2,390	2,414
Wynn Macau Ltd.,
5.250%, 10–15–21 (A)		1,931	1,984

			5,185


Coal & Consumable Fuels – 0.7%
Foresight Energy LLC and Foresight Energy Finance Corp.,
7.875%, 8–15–21 (A)		2,075	2,220


Communications Equipment – 1.9%
Eagle Midco, Inc.,
9.000%, 6–15–18 (A)(B)(H)		6,000	6,196


Construction Materials – 0.7%
Hillman Group, Inc. (The):
10.875%, 6–1–18		1,500	1,592
6.375%, 7–15–22 (A)		720	720

			2,312



Consumer Finance – 1.6%
Creditcorp,
12.000%, 7-15-18 (A)(H)		5,248	5,510


Distributors – 0.8%
Pinnacle Operating Corp.,
9.000%, 11-15-20 (A)		2,618	2,841


Diversified Banks – 0.2%
Barclays plc,
8.250%, 12-29-49		753	798


Diversified Capital Markets – 2.8%
Mobile Challenger Intermediate Group S.A.:
8.750%, 3-15-19 (A)(B)(C)		EUR2,000	2,807
8.750%, 3-15-19 (A)(B)(C)		CHF2,000	2,323
Patriot Merger Corp.,
9.000%, 7-15-21 (A)(H)	$	3,827	4,171

			9,301


Diversified Metals & Mining – 4.9%
Artsonig Pty Ltd.,
11.500%, 4-1-19 (A)(B)		1,172	1,156
Compass Minerals International, Inc.,
4.875%, 7-15-24 (A)		1,500	1,500
Crystal Merger Sub, Inc.,
7.625%, 10-15-21 (A)		391	417
FMG Resources Pty Ltd.:
8.250%, 11-1-19 (A)(H)		2,500	2,722
6.875%, 4-1-22 (A)(H)		9,267	9,938
Magnetation LLC and Mag Finance Corp.,
11.000%, 5-15-18 (A)		692	756

			16,489


Diversified Support Services – 4.5%
Algeco Scotsman Global Finance plc,
8.500%, 10-15-18 (A)(H)		10,575	11,237
Nexeo Solutions LLC,
8.375%, 3-1-18 (H)		3,600	3,636

			14,873


Electronic Manufacturing Services – 0.6%
KEMET Corp.,
10.500%, 5-1-18 (H)		2,000	2,115


Food Distributors – 0.5%
Diamond Foods, Inc.,
7.000%, 3-15-19 (A)		1,457	1,526


Health Care Facilities – 8.2%
Acadia Healthcare Co., Inc.,
5.125%, 7-1-22 (A)		149	149
AmSurg Corp.,
5.625%, 11-30-20		485	490
Catamaran Corp.,
4.750%, 3-15-21		645	651
ConvaTec Finance International S.A.,
8.250%, 1-15-19 (A)(B)		1,236	1,264
DaVita HealthCare Partners, Inc.,
5.125%, 7-15-24		901	907
FWCT-2 Escrow Corp.,
6.875%, 2-1-22 (A)		1,229	1,303
HCA Holdings, Inc.,
6.250%, 2-15-21 (H)		8,335	8,949
HCA, Inc.,
7.500%, 2-15-22 (H)		5,500	6,346
MPH Acquisition Holdings LLC,
6.625%, 4-1-22 (A)		916	960
Tenet Healthcare Corp.:
5.000%, 3-1-19 (A)		150	152
6.000%, 10-1-20		1,592	1,727
8.125%, 4-1-22 (H)		4,337	5,020

			27,918



Health Care Services – 1.8%
Envision Healthcare Corp.,
5.125%, 7-1-22 (A)	451	455
MedImpact Holdings, Inc.,
10.500%, 2-1-18 (A)(H)	5,000	5,425

		5,880


Hotels, Resorts & Cruise Lines – 0.9%
Hilton Worldwide Finance LLC,
5.625%, 10-15-21 (A)	2,937	3,121


Industrial Machinery – 0.1%
Dynacast International LLC and Dynacast Finance, Inc.,
9.250%, 7-15-19	293	322


Integrated Telecommunication Services – 4.3%
BCP (Singapore) VI Cayman Financing Co. Ltd.,
8.000%, 4-15-21 (A)	403	412
CenturyLink, Inc.:
5.625%, 4-1-20	349	368
5.800%, 3-15-22 (H)	13,000	13,537
Windstream Corp.,
7.750%, 10-15-20	72	78

		14,395


IT Consulting & Other Services – 0.5%
iGATE Corp.,
4.750%, 4-15-19 (A)	1,667	1,696


Leisure Facilities – 0.6%
Regal Entertainment Group,
5.750%, 2-1-25	2,000	2,025


Metal & Glass Containers – 1.4%
Ardagh Finance Holdings,
8.625%, 6-15-19 (A)(B)	641	660
Ardagh Packaging Finance plc and Ardagh Holdings USA, Inc.,
6.000%, 6-30-21 (A)	200	200
Consolidated Container Co. LLC and Consolidated Container Capital, Inc.,
10.125%, 7-15-20 (A)	1,872	1,881
Signode Industrial Group,
6.375%, 5-1-22 (A)	1,955	1,980

		4,721


Movies & Entertainment – 0.8%
Cinemark USA, Inc.:
5.125%, 12-15-22	533	548
4.875%, 6-1-23 (H)	1,651	1,643
WMG Acquisition Corp.:
5.625%, 4-15-22 (A)	161	162
6.750%, 4-15-22 (A)	484	484

		2,837


Oil & Gas Drilling – 0.2%
KCA DEUTAG UK Finance plc,
7.250%, 5-15-21 (A)	617	639


Oil & Gas Exploration & Production—0.7%
Athlon Holdings L.P. and Athlon Finance Corp.,
6.000%, 5-1-22 (A)	213	220
Chesapeake Energy Corp.:
3.479%, 4-15-19 (D)	758	767
4.875%, 4-15-22	1,061	1,098
Chesapeake Oilfield Operating, LLC,
6.500%, 7-15-22 (A)	360	369

		2,454


Oil & Gas Refining & Marketing – 5.0%
Offshore Drilling Holding S.A.,
8.375%, 9-20-20 (A)(H)	3,074	3,404
Samson Investment Co.,
10.750%, 2-15-20 (A)(D)(H)	5,000	5,269
Shelf Drilling Holdings Ltd.,
8.625%, 11-1-18 (A)(H)	7,608	8,141

		16,814



Oil & Gas Storage & Transportation – 0.4%
Energy XXI Gulf Coast, Inc.,
6.875%, 3-15-24 (A)		678	692
Williams Co., Inc. (The),
4.550%, 6-24-24		677	683

			1,375


Other Diversified Financial Services – 3.8%
AAF Holdings LLC and AAF Finance Co.,
12.000%, 7-1-19 (A)(B)		896	920
Greektown Holdings LLC and Greektown Mothership Corp.,
8.875%, 3-15-19 (A)		1,925	1,963
Icahn Enterprises L.P. and Icahn Enterprises Finance Corp.:
3.500%, 3-15-17		1,022	1,033
4.875%, 3-15-19		1,771	1,824
6.000%, 8-1-20		1,771	1,899
5.875%, 2-1-22		1,051	1,101
NCR Escrow Corp.:
5.875%, 12-15-21 (A)		1,154	1,217
6.375%, 12-15-23 (A)		1,233	1,338
New Cotai LLC and New Cotai Capital Corp.,
10.625%, 5-1-19 (A)(B)		250	288
PC Nextco Holdings LLC and PC Nextco Finance, Inc.,
8.750%, 8-15-19 (A)(B)		826	844

			12,427


Packaged Foods & Meats – 0.6%
JBS USA LLC and JBS USA Finance, Inc.,
5.875%, 7-15-24 (A)		2,099	2,094


Paper Packaging – 0.2%
Beverage Packaging Holdings II Issuer, Inc. and Beverage Packaging Holdings (Luxembourg) II S.A.,
6.000%, 6-15-17 (A)		591	606


Personal Products – 0.3%
Elizabeth Arden, Inc.,
7.375%, 3-15-21		1,016	1,077


Pharmaceuticals – 0.5%
Salix Pharmaceuticals Ltd.,
6.000%, 1-15-21 (A)		1,421	1,524


Precious Metals & Minerals – 1.0%
Prince Mineral Holding Corp.,
11.500%, 12-15-19 (A)(H)		3,000	3,383


Railroads – 0.7%
Florida East Coast Holdings Corp. and Florida East Coast Industries LLC:
6.750%, 5-1-19 (A)		1,462	1,544
9.750%, 5-1-20 (A)		607	641

			2,185


Real Estate Services – 1.1%
Stearns Holdings, Inc.,
9.375%, 8-15-20 (A)(H)		3,571	3,741


Semiconductors – 0.6%
Micron Technology, Inc.,
5.875%, 2-15-22 (A)		1,798	1,928


Specialized Consumer Services – 4.3%
AA Bond Co. Ltd.,
9.500%, 7-31-19 (A)(C)		GBP1,931	3,724
B-Corp Merger Sub, Inc.,
8.250%, 6-1-19 (H)	$	4,000	4,131
Carlson Travel Holdings,
7.500%, 8-15-19 (A)(B)		800	816
Carlson Wagonlit B.V.,
6.875%, 6-15-19 (A)		214	230
Lansing Trade Group,
9.250%, 2-15-19 (A)		1,314	1,288


Nielsen Finance,
5.500%, 10-1-21 (A)		1,396	1,441
Nielsen Finance LLC and Nielsen Finance Co.,
5.000%, 4-15-22 (A)		2,677	2,697

			14,327


Specialized Finance – 3.3%
Flexi-Van Leasing, Inc.,
7.875%, 8-15-18 (A)(H)		5,208	5,624
TMX Finance LLC and TitleMax Finance Corp.,
8.500%, 9-15-18 (A)(H)		5,293	5,611

			11,235


Specialized REITs – 1.6%
Aircastle Ltd.,
5.125%, 3-15-21		1,719	1,779
CNL Lifestyles Properties, Inc.,
7.250%, 4-15-19 (H)		3,539	3,721

			5,500


Specialty Stores – 2.5%
Jo-Ann Stores Holdings, Inc.,
9.750%, 10-15-19 (A)(B)		1,046	1,070
Jo-Ann Stores, Inc.,
8.125%, 3-15-19 (A)		81	83
Michaels Stores, Inc.,
5.875%, 12-15-20 (A)		240	245
Takko Luxembourg 2 S.C.A.,
9.875%, 4-15-19 (A)(C)		EUR5,258	6,912

			8,310


Technology Distributors – 0.0%
Sophia L.P. and Sophia Finance, Inc.,
9.625%, 12-1-18 (A)(B)	$	107	111


Textiles – 0.1%
Quiksilver, Inc. and QS Wholesale, Inc.,
7.875%, 8-1-18 (A)		487	494


Thrifts & Mortgage Finance—2.3%
Provident Funding Associates L.P. and PFG Finance Corp.,
6.750%, 6-15-21 (A)(H)		7,500	7,594


Tobacco – 0.5%
Prestige Brands, Inc.,
5.375%, 12-15-21 (A)		1,630	1,663


Trading Companies & Distributors – 2.6%
HD Supply, Inc.,
7.500%, 7-15-20 (H)		8,100	8,849


Wireless Telecommunication Service – 4.8%
Crown Castle International Corp.,
4.875%, 4-15-22		385	398
DigitalGlobe, Inc.,
5.250%, 2-1-21		1,388	1,374
Sprint Corp.:
7.250%, 9-15-21 (A)(H)		5,074	5,593
7.875%, 9-15-23 (A)(H)		4,459	4,961
Telecom Italia S.p.A.,
5.303%, 5-30-24 (A)		769	772
T-Mobile USA, Inc.:
6.464%, 4-28-19		728	766
6.542%, 4-28-20		788	851
6.633%, 4-28-21		382	414
6.125%, 1-15-22		372	395
6.731%, 4-28-22		158	170
6.836%, 4-28-23		158	172
6.500%, 1-15-24 372			398

			16,264



TOTAL CORPORATE DEBT SECURITIES – 103.6%			$	348,145
(Cost: $334,112)

MUNICIPAL BONDS
Puerto Rico – 0.6%
Cmnwlth of PR, GO Bonds of 2014, Ser A,
8.000%, 7-1-35		930		820
PR Aqueduct and Sewer Auth, Rev Bonds, Ser 2012A (Sr Lien):
5.750%, 7-1-37		515		348
5.250%, 7-1-42		515		331
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX,
5.750%, 7-1-36		155		69
PR Elec Power Auth, Power Rev Bonds, Ser 2013A,
7.000%, 7-1-33		205		94
PR Elec Power Auth, Power Rev Bonds, Ser WW,
5.500%, 7-1-38		620		275

				1,937


TOTAL MUNICIPAL BONDS – 0.6%			$	1,937
(Cost: $2,300)

LOANS
Apparel Retail – 5.8%
Hoffmaster Group, Inc.:
5.250%, 5-6-20 (D)		612		611
10.000%, 5-6-21 (D)		1,222		1,222
True Religion Apparel, Inc.:
5.875%, 7-29-19 (D)		7,425		6,957
5.875%, 7-30-19 (D)		7,500		7,026
11.000%, 1-30-20 (D)		4,000		3,800

				19,616


Application Software – 0.8%
Misys plc and Magic Newco LLC,
12.000%, 6-12-19 (D)		2,400		2,744


Auto Parts & Equipment – 0.3%
Direct ChassisLink, Inc.,
8.250%, 11-7-19 (D)		938		943


Building Products – 1.5%
GYP Holdings III Corp.:
4.750%, 3-27-21 (D)		1,365		1,358
7.750%, 3-27-22 (D)		2,012		2,030
Hampton Rubber Co. & SEI Holding Corp.,
9.000%, 3-24-22 (D)		1,719		1,721

				5,109


Casinos & Gaming – 0.2%
Gateway Casinos & Entertainment Ltd.:
6.250%, 11-4-19 (C)(D)		CAD2		2
5.598%, 11-26-19 (C)(D)		737		691

				693


Construction Materials – 0.6%
Quickrete Holdings, Inc.,
7.000%, 3-19-21 (D)	$	295		302
U.S. LBM Holdings LLC:
0.000%, 4-25-20 (D)		455		451
7.250%, 4-25-20 (D)		1,362		1,349

				2,102


Data Processing & Outsourced Services – 0.7%
Sedgwick Claims Management Services, Inc.,
6.750%, 1-27-22 (D)		2,412		2,405


Fertilizers & Agricultural Chemicals – 0.1%
Verdesian Life Sciences LLC,
0.000%, 6-25-20 (D)		300		300


General Merchandise Stores – 1.4%
Orchard Acquisition Co. LLC,
7.000%, 2-8-19 (D)		4,641		4,635



Health Care Facilities – 0.7%
MPH Acquisition Holdings LLC,
4.000%, 3-21-21 (D)	393	392
Surgery Center Holdings, Inc.,
9.750%, 4-11-20 (D)	2,000	2,030

		2,422


Health Care Services – 0.3%
Accellent, Inc.,
7.500%, 2-21-22 (D)	945	937


Hotels, Resorts & Cruise Lines – 1.5%
ESH Hospitality, Inc.,
0.000%, 5-27-19 (D)	602	607
Four Seasons Hotels Ltd.,
6.250%, 12-27-20 (D)	799	811
Hilton Worldwide Finance LLC:
3.500%, 9-23-20 (D)	96	96
3.500%, 10-15-20 (D)	3,466	3,458

		4,972


Housewares & Specialties – 0.8%
KIK Custom Products, Inc.:
5.500%, 5-17-19 (D)	1,881	1,886
9.500%, 11-17-19 (D)	781	790

		2,676


Independent Power Producers & Energy Traders – 1.3%
Alinta Energy Finance PTY Ltd.:
0.000%, 8-13-19 (D)	259	263
6.375%, 8-13-19 (D)	3,925	3,984

		4,247


Industrial Machinery – 1.3%
Accudyne Industries LLC,
0.000%, 12-13-19 (D)	93	93
Capital Safety North America Holdings, Inc.:
4.000%, 3-26-21 (D)	2,136	2,122
6.500%, 3-26-22 (D)	1,769	1,774
Husky Injection Moldings Systems Ltd.,
0.000%, 6-10-22 (D)	300	301

		4,290


IT Consulting & Other Services – 1.6%
Active Network, Inc. (The):
5.500%, 11-15-20 (D)	1,567	1,559
9.500%, 11-15-21 (D)	1,984	1,984
Triple Point Group Holdings, Inc.,
5.250%, 7-13-20 (D)	1,900	1,695

		5,238


Leisure Facilities – 0.8%
Northfield Park Associates LLC,
9.000%, 12-10-18 (D)	2,670	2,713


Life Sciences Tools & Services – 0.5%
Atrium Innovations, Inc.,
7.750%, 7-29-21 (D)	1,740	1,737


Metal & Glass Containers – 1.1%
Consolidated Container Co. LLC,
9.750%, 1-3-20 (D)	451	444
Evergreen Tank Solution, Inc.,
9.500%, 9-28-18 (D)	2,947	2,945

		3,389


Movies & Entertainment – 4.7%
Metro-Goldwyn-Mayer, Inc.,
0.000%, 6-4-20 (D)	225	227
Yonkers Racing Corp.,
8.750%, 8-20-20 (D)	15,889	15,572

		15,799


Oil & Gas Drilling – 0.4%
KCA Deutag Alpha Ltd.,
6.250%, 5-13-20 (D)	1,385	1,378


Oil & Gas Refining & Marketing – 1.6%
Fieldwood Energy LLC,
8.375%, 9-30-20 (D)	1,787	1,842


Shelf Drilling Midco Ltd.,
10.000%, 10-8-18 (B)(D)	3,209		3,273

			5,115


Oil & Gas Storage & Transportation – 1.2%
Bowie Resources Holdings LLC:
6.750%, 8-12-20 (D)	2,517		2,542
11.750%, 2-16-21 (D)	1,569		1,600

			4,142


Other Diversified Financial Services – 0.1%
World Endurance Holdings, Inc.,
0.000%, 6-24-21 (D)	449		450


Packaged Foods & Meats – 0.2%
Shearer’s Foods LLC,
0.000%, 6-19-22 (D)	748		754


Paper Packaging – 0.7%
FPC Holdings, Inc.,
9.250%, 5-27-20 (D)	2,500		2,450


Research & Consulting Services – 1.6%
Larchmont Resources LLC,
8.250%, 8-7-19 (D)	5,253		5,345


Restaurants – 0.4%
TGI Friday’s, Inc.:
0.000%, 6-20-20 (D)	374		374
0.000%, 6-20-21 (D)	1,063		1,059

			1,433


Specialty Chemicals – 0.2%
Chromaflo Technologies Corp.,
8.250%, 6-2-20 (D)	706		711


TOTAL LOANS – 32.4%		$	108,745
(Cost: $108,180)

SHORT-TERM SECURITIES
Commercial Paper – 0.4%
United Technologies Corp.,
0.070%, 7-1-14 (E)	1,554		1,554


Master Note – 0.1%
Toyota Motor Credit Corp.,
0.104%, 7-2-14 (F)	190		190


TOTAL SHORT-TERM SECURITIES – 0.5%		$	1,744
(Cost: $1,744)

TOTAL INVESTMENT SECURITIES – 137.1%		$	460,571
(Cost: $446,336)

BORROWINGS (G) (40.2%)			(135,000	)

CASH AND OTHER ASSETS, NET OF LIABILITIES – 3.1%			10,269

NET ASSETS—100.0%		$	335,840

Notes to Schedule of Investments

(A) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2014, the total value of these securities amounted to $228,565 or 68.1% of net assets.

(B) Payment-in-kind bonds.

(C) Principal amounts are denominated in the indicated foreign currency, where applicable (CAD—Canadian Dollar, CHF—Swiss Franc, EUR—Euro and GBP—British Pound).

(D) Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2014.

(E) Rate shown is the yield to maturity at June 30, 2014.

(F) Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2014. Date shown represents the date that the variable rate resets.

(G) Borrowings Payable as a percentage of Total Investments is 29.3%.

(H) All or a portion of the security position has been pledged as collateral on open borrowings.

The following forward foreign currency contracts were outstanding at June 30, 2014:


Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	British Pound	Morgan Stanley International		2,112		7-29-14	$	—	$	24
Sell	Euro	Morgan Stanley International		16,995		7-29-14		—		82
Sell	Swiss Franc	Morgan Stanley International		2,000		7-29-14		—		12
							$	—	$	118

Each Fund’s investments are reported at fair value. Fair value is defined as the price that each Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date.

Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Reoccurring fair value measurements of Level 3 securities shall include a reconciliation of the beginning to ending balances for reported fair market values. A fair value hierarchy and Level 3 reconciliation, if applicable, have been included in the Notes to Schedule of Investments for each respective Fund.

An individual investment’s fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized as follows:

Level 1 – Observable input such as quoted prices, available in active markets, for identical assets or liabilities.

Level 2 – Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

Level 3 – Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair market value of investments.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of June 30, 2014:


	Level 1		Level 2		Level 3
Assets
Investments in Securities
Corporate Debt Securities	$	—	$	334,937	$	13,208
Municipal Bonds		—		1,937		—
Loans		—		72,273		36,472
Short-Term Securities		—		1,744		—
Total	$	—	$	410,891	$	49,680
Liabilities
Forward Foreign Currency Contracts	$	—	$	118	$	—
Payable for Borrowing	$	—	$	135,000	$	—

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Corporate Debt Securities			Loans
Beginning Balance 10-1-13	$	—		$	35,321
Net realized gain (loss)		1			—	*
Net change in unrealized appreciation (depreciation)		420			51
Purchases		2,138			5,118
Sales		(69	)		(502	)
Amortization/Accretion of premium/discount		(39	)		49
Transfers into Level 3 during the period		10,757			5,268
Transfers out of Level 3 during the period		—			(8,833	)
Ending Balance 6-30-14	$	13,208		$	36,472
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 6-30-14	$	420		$	51

Transfers from Level 2 to Level 3 occurred primarily due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred primarily due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2014.

Information about Level 3 fair value measurements:

Fair Value at 6-30-14

Valuation Technique(s)

Unobservable Input(s)

Assets

Corporate Debt Securities

13,208

Third-party valuation service

Broker quotes

Loans

36,472

Third-party valuation service

Broker quotes

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trust

For Federal income tax purposes, cost of investments owned at June 30, 2014 and the related unrealized appreciation (depreciation) were as follows:


Cost	$	446,336
Gross unrealized appreciation		15,722
Gross unrealized depreciation		(1,487	)
Net unrealized appreciation	$	14,235

ITEM 2. CONTROLS AND PROCEDURES.

(a)

The Registrant’s Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant’s management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

(b)

There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).

Attached hereto as Exhibit 99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Ivy High Income Opportunities Fund
(Registrant)

By:		/s/ Mara D. Herrington
		Mara D. Herrington, Vice President and Secretary

Date: August 28, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:		/s/ Henry J. Herrmann
		Henry J. Herrmann, Principal Executive Officer

Date: August 28, 2014


By:		/s/ Joseph W. Kauten
		Joseph W. Kauten, Principal Financial Officer

Date: August 28, 2014