| Exhibit 99.1 |
News Release
Waddell & Reed Financial, Inc. Reports Fourth Quarter Results
Overland Park, KS, Jan. 29, 2008 — Waddell & Reed Financial, Inc. (NYSE: WDR) reported fourth quarter net income of $35.1 million, or $0.42 per diluted share compared to net income of $32.0 million, or $0.39 per diluted share in the third quarter and net income of $30.0 million, or $0.36 per diluted share in last year’s fourth quarter.
Business Discussion
Management commentary
“As 2007 comes to a close, I am delighted to report on the continued progress we have made in each of our distribution channels,” said Hank Herrmann, Chief Executive Officer of Waddell & Reed Financial, Inc. “We experienced accelerating momentum through the year, with meaningful productivity improvement in our Advisors channel, extraordinary traction in our Wholesale channel, and validation of our relationship with Pictet & Cie. in the Institutional channel.”
Advisors channel
During 2007, sales benefited from the launch of our new — and much anticipated — asset allocation products as well as meaningful acceleration of variable annuity sales. Our advisors have enjoyed a steady improvement in productivity as a result of stronger sales volume. Sales per advisor, a measure of gross sales volume, increased to $334 thousand per advisor in the fourth quarter compared to $296 thousand in the previous quarter and $234 thousand in last year’s fourth quarter. Sales per advisor for the full year 2007 reached $1.2 million compared to $994 thousand in 2006 for an annual improvement of 20%. In terms of percentage, our newer advisors — those with 2 years or less of tenure — saw the greatest productivity improvement with an increase in average productivity of 23% during 2007 while, on a dollar basis, our tenured advisor group increased their average productivity by $282 thousand, a 19% annual improvement.
Net sales, which began the year with outflows, improved steadily through 2007 and finished the year with inflows of $35 million during the fourth quarter. This improvement is a direct result of higher sales volume and continued industry low redemption rate.
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Wholesale channel
We enjoyed outstanding success in the Wholesale channel, finishing the year on an especially strong note. Gross sales for the full-year 2007 were $9.5 billion, an increase of 109% compared with $4.5 billion in 2006, while net sales during the same period were $6.7 billion, an increase of 154% compared with $2.6 billion last year. Net flows — a measure which includes net sales as well as net exchanges, reinvested dividends and capital gains — during the same period totaled $6.8 billion and represented an organic growth rate of 63%.
Supported by a solid investment record, daily flows into our Asset Strategy fund have accelerated throughout the year. The flexible nature of this fund makes it an important component of investors’ portfolios, especially during turbulent markets. While our Asset Strategy fund has experienced exceptional momentum, the Global Natural Resources fund has also been an important contributor to sales volume as have a number of other funds that continue to see steady flows.
Institutional channel
Gross sales of $1.1 billion during the fourth quarter were significantly higher than our previous run rate. The improvement in sales comes primarily from Pictet & Cie., a leading international private bank based in Geneva, Switzerland, supported by our Large Cap product. Investors’ enthusiasm has reignited demand for this investment style and we particularly benefited on the strength of our investment performance record.
Management Fee Revenue Analysis
Average assets increased 13% compared to the third quarter and 32% compared to last year’s fourth quarter, in both cases on a combination of strong sales volume and market action.
The effective management fee rate declined slightly to 66.9 basis points in the current quarter compared to 68.0 basis points in the third quarter and 68.2 basis points in last year’s fourth quarter. The full basis point decline is attributable to a mix-shift in sales of our retail products.
Underwriting and Distribution Analysis
Advisors channel
On a sequential basis, approximately half of the increase in revenues was due to higher front-load sales volume — Class A and variable annuities. The remainder of the increase was due to higher asset-based fees and to a lesser extent, higher financial plan and insurance revenues. Direct expenses increased with higher sales volume and asset levels while indirect cost increased on a combination of higher travel and technology expenses, as well as higher legal expenses related to routine matters in our Advisors channel.
Compared to last year’s fourth quarter, the increase in revenues is largely attributable to higher asset-based fees and variable annuity sales volume. This increase was partly offset by lower front-load Class A sales and financial plan fees. This shift occurred because of the introduction of our new asset allocation products during the second quarter of 2007. Direct expenses increased with higher sales volume and asset levels while indirect expenses increased on higher recruiting-related, compensation and support costs.
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Wholesale channel
Sequentially, the increase in revenues is attributable largely to higher asset-based service and distribution fees, driven by higher average assets under management. Direct expenses increased on higher sales volume while indirect expenses increased slightly on higher sales support costs.
Compared to last year’s fourth quarter, revenues increased largely on higher asset-based service and distribution fees while direct expenses increased on higher sales volume. Indirect expenses rose on higher marketing, business travel and compensation costs.
Operating Expense Analysis
On a sequential quarter basis — excluding the above-discussed impact of our underwriting and distribution costs — operating costs increased due to higher compensation and related costs and to a lesser extent, to higher general and administrative and subadvisory expenses. The increase in compensation and related costs was largely attributable to higher incentive compensation, and to a lesser extent, higher payroll tax costs associated with bonuses and heavier than usual stock option exercises of options that were nearing the end of their term. General and administrative costs increased due to higher technology costs and to a lesser extent, higher travel costs, while smaller changes in a number of other categories were largely offsetting. Subadvisory costs rose on higher levels of subadvised assets under management.
Compared to the same quarter last year, the increase in operating costs was largely due to higher underwriting and distribution costs (discussed above). Compensation and related costs rose on higher headcount and annual merit increases, incentive compensation and payroll taxes. General and administrative expenses rose on a combination of higher technology and fund-related costs. Subadvisory costs rose on higher levels of subadvised assets under management.
Subadvised average assets under management were $12.0 billion in the current quarter, compared to $10.9 billion and $8.0 billion for the third quarter of 2007 and fourth quarter of 2006, respectively. The percentage of sales of subadvised products compared to Waddell & Reed-managed products continues to decline. During the 12-months ended December 31, 2007, 25% of sales were of subdvised funds, comparing favorably to 35% during the same period in 2006. And while we are experiencing a mix-shift in sales that has resulted in a lower effective management fee rate, it is worth noting that our Asset Strategy fund is managed internally, and as such, we retain 100% of the management fees earned on the product.
Other
Investment and other income rose compared to both the third quarter and last year’s fourth quarter due to gains on the sale of certain of our mutual fund investments as well as higher capital gains and dividend income.
Due to a meaningful appreciation in our stock price, there were a significant amount of stock options exercised during the fourth quarter. In total, we issued a net of approximately 3 million new shares from individuals exercising stock options. Almost half of this activity occurred during December, so the full dilutive impact of this activity will be seen in the first quarter of 2008. In addition, under our long-term equity compensation program, we issued an additional 265 thousand shares of restricted stock.
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Balance Sheet Information
Cash and cash equivalents and investment securities are $415 million (including $100 million held for the benefit of customers segregated in compliance with federal and other regulations). The large increase in cash during the quarter was impacted by heavier than usual stock option exercises. We have no short-term outstanding borrowings against our money market loan program or our $200 million credit facility.
Stockholders’ equity is $382 million and there are 86.6 million shares outstanding. During the quarter, we repurchased 155 thousand shares on the open market or privately at an aggregate cost of $5.1 million. For the year ended December 31, 2007, we repurchased a total of 2.4 million shares on the open market or privately at an aggregate cost of $59.5 million.
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Unaudited Schedule of Operating Data
(Amounts in thousands, except for per share data) | | 2006 | | 2007 | |
| | 1st Qtr. | | 2nd Qtr. | | 3rd Qtr. | | 4th Qtr. | | 1st Qtr. | | 2nd Qtr. | | 3rd Qtr. | | 4th Qtr. | |
Operating Revenues: | | | | | | | | | | | | | | | | | |
Investment management fees | | $ | 74,049 | | $ | 78,190 | | $ | 77,955 | | $ | 81,331 | | $ | 82,860 | | $ | 89,383 | | $ | 94,806 | | $ | 105,296 | |
Underwriting and distribution fees | | 77,012 | | 80,494 | | 77,908 | | 82,044 | | 84,016 | | 88,556 | | 92,168 | | 106,345 | |
Shareholder service fees | | 22,009 | | 22,627 | | 22,719 | | 22,317 | | 22,623 | | 23,347 | | 23,678 | | 24,476 | |
Total operating revenues | | 173,070 | | 181,311 | | 178,582 | | 185,692 | | 189,499 | | 201,286 | | 210,652 | | 236,117 | |
Operating Expenses: | | | | | | | | | | | | | | | | | |
Underwriting and distribution | | 84,754 | | 91,545 | | 87,927 | | 92,313 | | 94,397 | | 99,528 | | 105,604 | | 122,745 | |
Compensation and related costs | | 28,942 | | 27,076 | | 25,767 | | 28,315 | | 26,932 | | 28,312 | | 28,760 | | 31,901 | |
General and administrative | | 10,246 | | 64,982 | | 15,539 | | 9,839 | | 10,083 | | 11,840 | | 12,745 | | 13,819 | |
Subadvisory fees | | 6,549 | | 7,599 | | 7,960 | | 8,650 | | 9,215 | | 10,638 | | 11,459 | | 12,532 | |
Depreciation | | 2,853 | | 2,956 | | 2,970 | | 2,945 | | 3,043 | | 3,062 | | 3,167 | | 3,140 | |
Goodwill impairment | | — | | 20,000 | | — | | — | | — | | — | | — | | — | |
Total operating expenses | | 133,344 | | 214,158 | | 140,163 | | 142,062 | | 143,670 | | 153,380 | | 161,735 | | 184,137 | |
Operating Income: | | 39,726 | | (32,847 | ) | 38,419 | | 43,630 | | 45,829 | | 47,906 | | 48,917 | | 51,980 | |
Investment and other income | | 2,264 | | 2,144 | | 2,960 | | 5,131 | | 2,480 | | 2,609 | | 4,831 | | 6,532 | |
Interest expense | | (3,254 | ) | (2,984 | ) | (3,048 | ) | (2,941 | ) | (2,984 | ) | (2,982 | ) | (2,984 | ) | (2,974 | ) |
Income before taxes | | 38,736 | | (33,687 | ) | 38,331 | | 45,820 | | 45,325 | | 47,533 | | 50,764 | | 55,538 | |
Provision for taxes | | 14,144 | | (665 | ) | 13,740 | | 15,869 | | 16,598 | | 17,827 | | 18,797 | | 20,441 | |
Net Income | | $ | 24,592 | | $ | (33,022 | ) | $ | 24,591 | | $ | 29,951 | | $ | 28,727 | | $ | 29,706 | | $ | 31,967 | | $ | 35,097 | |
Net income per share- diluted | | 0.30 | | (0.40 | ) | 0.30 | | 0.36 | | 0.35 | | 0.36 | | 0.39 | | 0.42 | |
Weighted average shares outstanding - diluted | | 82,943 | | 81,570 | | 83,171 | | 83,169 | | 82,803 | | 82,323 | | 82,099 | | 83,676 | |
Operating margin | | 23.0 | % | -18.1 | % | 21.5 | % | 23.5 | % | 24.2 | % | 23.8 | % | 23.2 | % | 22.0 | % |
Underwriting and Distribution
(Amounts in thousands) | | 2006 | | 2007 | |
Advisors Channel | | 1st Qtr. | | 2nd Qtr. | | 3rd Qtr. | | 4th Qtr. | | 1st Qtr. | | 2nd Qtr. | | 3rd Qtr. | | 4th Qtr. | |
Revenues | | $ | 56,280 | | $ | 57,724 | | $ | 54,398 | | $ | 56,911 | | $ | 56,807 | | $ | 57,839 | | $ | 57,728 | | $ | 65,836 | |
Expenses | | | | | | | | | | | | | | | | | |
Direct | | 38,468 | | 40,736 | | 37,323 | | 38,053 | | 39,340 | | 40,173 | | 39,539 | | 44,461 | |
Indirect | | 19,866 | | 21,523 | | 19,899 | | 21,050 | | 20,775 | | 20,057 | | 21,145 | | 22,800 | |
Total expenses | | $ | 58,334 | | $ | 62,259 | | $ | 57,222 | | $ | 59,103 | | $ | 60,115 | | $ | 60,230 | | $ | 60,684 | | $ | 67,261 | |
Margin | | -3.6 | % | -7.9 | % | -5.2 | % | -3.9 | % | -5.8 | % | -4.1 | % | -5.1 | % | -2.2 | % |
Wholesale Channel (Third-Party) | | | | | | | | | | | | | | | | | |
Revenues | | $ | 7,909 | | $ | 9,468 | | $ | 10,465 | | $ | 11,446 | | $ | 12,968 | | $ | 15,609 | | $ | 19,271 | | $ | 25,343 | |
Expenses | | | | | | | | | | | | | | | | | |
Direct | | 11,091 | | 12,708 | | 14,722 | | 15,671 | | 16,951 | | 20,025 | | 25,340 | | 35,253 | |
Indirect | | 3,832 | | 4,917 | | 4,222 | | 5,295 | | 5,001 | | 6,158 | | 6,304 | | 6,820 | |
Total expenses | | $ | 14,923 | | $ | 17,625 | | $ | 18,944 | | $ | 20,966 | | $ | 21,952 | | $ | 26,183 | | $ | 31,644 | | $ | 42,073 | |
Wholesale Channel (Legend) | | | | | | | | | | | | | | | | | |
Revenues | | $ | 12,823 | | $ | 13,302 | | $ | 13,045 | | $ | 13,687 | | $ | 14,241 | | $ | 15,108 | | $ | 15,169 | | $ | 15,166 | |
Expenses | | | | | | | | | | | | | | | | | |
Direct | | 8,654 | | 8,992 | | 8,855 | | 9,181 | | 9,478 | | 10,165 | | 10,158 | | 10,046 | |
Indirect | | 2,843 | | 2,669 | | 2,906 | | 3,063 | | 2,852 | | 2,950 | | 3,118 | | 3,365 | |
Total expenses | | $ | 11,497 | | $ | 11,661 | | $ | 11,761 | | $ | 12,244 | | $ | 12,330 | | $ | 13,115 | | $ | 13,276 | | $ | 13,411 | |
Consolidated Total | | | | | | | | | | | | | | | | | |
Revenues | | $ | 77,012 | | $ | 80,494 | | $ | 77,908 | | $ | 82,044 | | $ | 84,016 | | $ | 88,556 | | $ | 92,168 | | $ | 106,345 | |
Expenses | | | | | | | | | | | | | | | | | |
Direct | | 58,213 | | 62,436 | | 60,900 | | 62,905 | | 65,769 | | 70,363 | | 75,037 | | 89,760 | |
Indirect | | 26,541 | | 29,109 | | 27,027 | | 29,408 | | 28,628 | | 29,165 | | 30,567 | | 32,985 | |
Total expenses | | $ | 84,754 | | $ | 91,545 | | $ | 87,927 | | $ | 92,313 | | $ | 94,397 | | $ | 99,528 | | $ | 105,604 | | $ | 122,745 | |
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Changes in Assets Under Management
(Amounts in millions) | | 2006 | | 2007 | |
| | 1st Qtr. | | 2nd Qtr. | | 3rd Qtr. | | 4th Qtr. | | 1st Qtr. | | 2nd Qtr. | | 3rd Qtr. | | 4th Qtr. | |
Advisors Channel | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 27,188 | | $ | 28,630 | | $ | 28,361 | | $ | 28,552 | | $ | 29,905 | | $ | 30,427 | | $ | 32,153 | | $ | 34,069 | |
Sales (net of commissions) | | 843 | | 847 | | 759 | | 767 | | 783 | | 866 | | 902 | | 1,000 | |
Redemptions | | (849 | ) | (810 | ) | (806 | ) | (860 | ) | (915 | ) | (1,027 | ) | (922 | ) | (965 | ) |
Net sales | | (6 | ) | 37 | | (47 | ) | (93 | ) | (132 | ) | (161 | ) | (20 | ) | 35 | |
Net exchanges | | (64 | ) | (40 | ) | (38 | ) | (52 | ) | (39 | ) | (46 | ) | (67 | ) | (29 | ) |
Reinvested dividends & capital gains | | 48 | | 112 | | 64 | | 8 | | 65 | | 108 | | 80 | | (8 | ) |
Net flows | | (22 | ) | 109 | | (21 | ) | (137 | ) | (106 | ) | (99 | ) | (7 | ) | (2 | ) |
Market action | | 1,464 | | (378 | ) | 212 | | 1,490 | | 628 | | 1,825 | | 1,923 | | 495 | |
Ending assets | | $ | 28,630 | | $ | 28,361 | | $ | 28,552 | | $ | 29,905 | | $ | 30,427 | | $ | 32,153 | | $ | 34,069 | | $ | 34,562 | |
Wholesale Channel | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 6,729 | | $ | 8,227 | | $ | 8,952 | | $ | 9,483 | | $ | 10,819 | | $ | 11,996 | | $ | 14,247 | | $ | 17,405 | |
Sales (net of commissions) | | 1,151 | | 1,175 | | 1,088 | | 1,127 | | 1,300 | | 1,703 | | 2,500 | | 3,967 | |
Redemptions | | (348 | ) | (505 | ) | (513 | ) | (549 | ) | (596 | ) | (635 | ) | (701 | ) | (863 | ) |
Net sales | | 803 | | 670 | | 575 | | 578 | | 704 | | 1,068 | | 1,799 | | 3,104 | |
Net exchanges | | 60 | | 38 | | 37 | | 50 | | 37 | | 45 | | 65 | | 27 | |
Reinvested dividends & capital gains | | 10 | | 25 | | 10 | | (29 | ) | 12 | | 35 | | 18 | | (89 | ) |
Net flows | | 873 | | 733 | | 622 | | 599 | | 753 | | 1,148 | | 1,882 | | 3,042 | |
Market action | | 625 | | (8 | ) | (91 | ) | 737 | | 424 | | 1,103 | | 1,276 | | 1,090 | |
Ending assets | | $ | 8,227 | | $ | 8,952 | | $ | 9,483 | | $ | 10,819 | | $ | 11,996 | | $ | 14,247 | | $ | 17,405 | | $ | 21,537 | |
Institutional Channel | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 7,946 | | $ | 7,995 | | $ | 7,688 | | $ | 7,578 | | $ | 7,677 | | $ | 7,315 | | $ | 7,564 | | $ | 7,908 | |
Sales (net of commissions) | | 172 | | 222 | | 345 | | 229 | | 353 | | 137 | | 282 | | 1,111 | |
Redemptions | | (450 | ) | (369 | ) | (404 | ) | (525 | ) | (899 | ) | (319 | ) | (542 | ) | (368 | ) |
Net sales | | (278 | ) | (147 | ) | (59 | ) | (296 | ) | (546 | ) | (182 | ) | (260 | ) | 743 | |
Net exchanges | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | |
Reinvested dividends & capital gains | | 29 | | 30 | | 28 | | 24 | | 28 | | 28 | | 24 | | 25 | |
Net flows | | (249 | ) | (117 | ) | (31 | ) | (272 | ) | (518 | ) | (154 | ) | (236 | ) | 768 | |
Market action | | 298 | | (190 | ) | (79 | ) | 371 | | 156 | | 403 | | 580 | | 93 | |
Ending assets | | $ | 7,995 | | $ | 7,688 | | $ | 7,578 | | $ | 7,677 | | $ | 7,315 | | $ | 7,564 | | $ | 7,908 | | $ | 8,769 | |
Consolidated Total | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 41,863 | | $ | 44,852 | | $ | 45,001 | | $ | 45,613 | | $ | 48,401 | | $ | 49,738 | | $ | 53,964 | | $ | 59,382 | |
Sales (net of commissions) | | 2,166 | | 2,244 | | 2,192 | | 2,123 | | 2,436 | | 2,706 | | 3,684 | | 6,078 | |
Redemptions | | (1,647 | ) | (1,684 | ) | (1,723 | ) | (1,934 | ) | (2,410 | ) | (1,981 | ) | (2,165 | ) | (2,196 | ) |
Net sales | | 519 | | 560 | | 469 | | 189 | | 26 | | 725 | | 1,519 | | 3,882 | |
Net exchanges | | (4 | ) | (2 | ) | (1 | ) | (2 | ) | (2 | ) | (1 | ) | (2 | ) | (2 | ) |
Reinvested dividends & capital gains | | 87 | | 167 | | 102 | | 3 | | 105 | | 171 | | 122 | | (72 | ) |
Net flows | | 602 | | 725 | | 570 | | 190 | | 129 | | 895 | | 1,639 | | 3,808 | |
Market action | | 2,387 | | (576 | ) | 42 | | 2,598 | | 1,208 | | 3,331 | | 3,779 | | 1,678 | |
Ending assets | | $ | 44,852 | | $ | 45,001 | | $ | 45,613 | | $ | 48,401 | | $ | 49,738 | | $ | 53,964 | | $ | 59,382 | | $ | 64,868 | |
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Supplemental Information
| | 2006 | | 2007 |
| | 1st Qtr. | | 2nd Qtr. | | 3rd Qtr. | | 4th Qtr. | | 1st Qtr. | | 2nd Qtr. | | 3rd Qtr. | | 4th Qtr. | |
Redemption rates - long term assets | | | | | | | | | | | | | | | | | |
Advisors | | 9.8 | % | 8.9 | % | 9.0 | % | 9.2 | % | 9.8 | % | 10.0 | % | 8.8 | % | 8.0 | % |
Wholesale | | 18.3 | % | 23.1 | % | 21.5 | % | 21.0 | % | 21.0 | % | 18.8 | % | 17.9 | % | 17.3 | % |
Institutional | | 22.7 | % | 19.1 | % | 21.4 | % | 27.2 | % | 48.0 | % | 17.0 | % | 28.4 | % | 17.4 | % |
Total | | 13.7 | % | 13.4 | % | 13.7 | % | 14.8 | % | 18.4 | % | 13.3 | % | 14.1 | % | 12.2 | % |
| | | | | | | | | | | | | | | | | |
Sales per advisor (000s) | | | | | | | | | | | | | | | | | |
Total | | 259 | | 269 | | 233 | | 234 | | 252 | | 305 | | 296 | | 334 | |
2+ Years | | 395 | | 396 | | 327 | | 336 | | 371 | | 434 | | 439 | | 505 | |
0 to 2 Years | | 71 | | 83 | | 72 | | 73 | | 77 | | 102 | | 91 | | 94 | |
| | | | | | | | | | | | | | | | | |
Gross production per advisor (000s) | | 15.9 | | 15.9 | | 14.8 | | 15.5 | | 16.1 | | 15.9 | | 15.2 | | 17.4 | |
| | | | | | | | | | | | | | | | | |
Number of advisors | | 2,299 | | 2,273 | | 2,276 | | 2,255 | | 2,171 | | 2,175 | | 2,273 | | 2,293 | |
| | | | | | | | | | | | | | | | | |
Number of shareholder accounts (000s) | | 2,733 | | 2,833 | | 2,833 | | 2,899 | | 2,969 | | 3,047 | | 3,142 | | 3,275 | |
| | | | | | | | | | | | | | | | | |
Number of shareholders (000s) | | 646 | | 652 | | 654 | | 657 | | 663 | | 688 | | 696 | | 720 | |
Fund Rankings
Lipper | | | | | | | |
Equity funds | | 1 Year | | 3 Years | | 5 Years | |
Top quartile | | 60 | % | 60 | % | 46 | % |
Top half | | 74 | % | 76 | % | 68 | % |
| | | | | | | |
Equity assets | | | | | | | |
Top quartile | | 66 | % | 66 | % | 73 | % |
Top half | | 88 | % | 90 | % | 85 | % |
| | | | | | | |
All funds | | | | | | | |
Top quartile | | 56 | % | 51 | % | 37 | % |
Top half | | 73 | % | 71 | % | 59 | % |
| | | | | | | |
All assets | | | | | | | |
Top quartile | | 66 | % | 62 | % | 67 | % |
Top half | | 88 | % | 88 | % | 80 | % |
| | | | | | | |
MorningStar | | | | | | | |
% of funds with 4 or 5 stars | | | | | | | |
Equity funds | | 51 | % | 51 | % | 33 | % |
All funds | | 38 | % | 42 | % | 24 | % |
| | | | | | | |
% of assets with 4 or 5 stars | | | | | | | |
Equity funds | | 79 | % | 62 | % | 60 | % |
All funds | | 71 | % | 57 | % | 54 | % |
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Earnings Conference Call
Stockholders, members of the investment community and the general public are invited to listen to a live Web cast of our earnings release conference call today, Jan. 29, 2008 at 10:00 a.m. Eastern. During this call, Henry J. Herrmann, CEO, will review our fourth quarter results. Live access to the teleconference will be available on the “Corporate” section of our Web site at www.waddell.com. A Web cast replay will be made available shortly after the call through February 5th.
Website Resources
We invite you to visit the “Corporate” section of our Web site at www.waddell.com under the caption “Data Tables” to review supplemental information schedules.
Contacts
Investor Contact:
Nicole McIntosh, Director of Investor Relations, (913) 236-1880, nmcintosh@waddell.com
Mutual Fund Investor Contact:
Call (888) WADDELL, or visit www.waddell.com or www.ivyfunds.com.
Past performance is no guarantee of future results. Please invest carefully.
About the Company
Waddell & Reed, Inc., founded in 1937, is one of the oldest mutual fund complexes in the United States, having introduced the Waddell & Reed Advisors Group of Mutual Funds in 1940. Today, we distribute our investment products through the Waddell & Reed Advisors channel (our network of financial advisors), our Wholesale channel (encompassing broker/dealer, retirement, registered investment advisors as well as the activities of our Legend subsidiary), and our Institutional channel (including defined benefit plans, pension plans and endowments, as well as the activities of ACF and our subadvisory partnership with Mackenzie in Canada).
Through its subsidiaries, Waddell & Reed Financial, Inc. provides investment management and financial planning services to clients throughout the United States. Waddell & Reed Investment Management Company serves as investment advisor to the Waddell & Reed Advisors Group of Mutual Funds, W&R Target Funds, Inc. and Waddell & Reed InvestEd Portfolios, Inc., while Ivy Investment Management Company serves as investment advisor to Ivy Funds, Inc. and the Ivy Funds portfolios. Waddell & Reed, Inc. serves as principal underwriter and distributor to the Waddell & Reed Advisors Group of Mutual Funds, W&R Target Funds, Inc. and Waddell & Reed InvestEd Portfolios, Inc., while Ivy Funds Distributor, Inc. serves as principal underwriter and distributor to Ivy Funds, Inc. and the Ivy Funds portfolios.
Forward-Looking Statements
The statements in this press release relating to matters that are not historical facts are forward-looking statements based on management’s belief and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Such differences could be caused by a number of factors including, but not limited to, a risk that the expected benefits from the expansion of our distribution channels may not be as beneficial as anticipated, a drop off in sales or a reduction in net asset flows, increased expenses, unexpected and adverse results of litigation or regulation, governmental investigation, settlements of such investigations and regulatory investigations of the Company, acts of terrorism and/or war, less favorable economic and market conditions including our cost to finance the Company, the risk that the intended results of our changes to long-term incentive compensation may not meet our expectations, and other risks as set out in the reports we have filed with the SEC. Should one or more of these risks materialize or should the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected. We assume no duty to publicly update or revise such statements, whether as a result of new information, future events or otherwise.
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