WDR - Waddell & Reed Financial Inc. Reports Third Quarter Results

October, 30 2018 06:45 AM Waddell & Reed Financial Inc.

Waddell & Reed Financial, Inc. (NYSE: WDR) today reported third quarter 2018 net income¹of $46.3 million, or $0.58 per diluted share, compared to net income of $44.5 million, or $0.55 per diluted share, during the prior quarter and net income of $53.6 million, or $0.64 per diluted share, during the third quarter of 2017. The third quarter of 2017 included net gains of $25.1 million ($15.8 net of taxes, or $0.20 per diluted share) due to the freeze of our pension plan on September 30, 2017.

Revenues of $295.1 million during the quarter remained largely unchanged compared to the second quarter of 2018 and increased $5.7 million compared to the third quarter of 2017. Operating expenses of $235.6 million during the quarter declined $1.4 million sequentially and were unchanged compared to the same quarter in 2017. The operating margin was 20.2% during the current quarter, compared to 19.7% and 18.6% during the second quarter of 2018 and the third quarter of 2017, respectively.

Assets under management ended the quarter at $79.5 billion, increasing 1% compared to the prior quarter and declining 2% compared to the third quarter of 2017. Sales of $2.5 billion during the current quarter declined 13% compared to the second quarter of 2018 and 12% compared to the third quarter of 2017. Net outflows of $2.0 billion during the current quarter improved compared to net outflows of $3.1 billion during the second quarter of 2018 and net outflows of $2.8 billion during the third quarter of 2017. The improvement in net outflows was due to lower redemptions in our institutional channel.

Broker-dealer assets under administration ended the quarter at $58.1 billion, increasing 2% compared to the second quarter of 2018 and 5% compared to the same quarter in 2017. Average productivity per advisor, as measured by average trailing twelve-month revenue per advisor, was $350 thousand for the twelve-month period ended September 30, 2018, rising 46% compared September of 2017.

“Our focus remains on making the necessary strategic investments and operational improvements that will enhance the long-term competitive positioning of both our asset management business and our broker-dealer,” said Philip J. Sanders, Chief Executive Officer of Waddell & Reed Financial, Inc. “Strong investment performance is essential to support this effort and we continue to make solid progress in strengthening both our short- and long-term track records across much of the complex.”

Revenues Analysis

Investment management fees declined $1.1 million, or 1% sequentially, due to fee reductions in selected mutual funds and lower average assets under management, which were partly offset by an additional day during the current quarter. Compared with the same quarter in 2017, revenues declined $4.8 million, or 4%, due to fee reductions in selected mutual funds and lower average assets under management. During the current quarter, the effective management fee rate was 64.6 basis points compared to 65.4 basis points during the second quarter of 2018 and 66.1 basis points during the third quarter of 2017. Average assets under management were $79.5 billion during the current quarter, compared to $80.0 billion during the prior quarter and $80.5 billion during the third quarter of 2017.

Underwriting and distribution fees increased $2.4 million, or 2% sequentially, primarily due to higher asset-based advisory fees in the broker-dealer. Compared to the same quarter in 2017, fees increased $11.4 million, or 9%, due to higher asset-based advisory fees as well as increased support and service revenues from independent financial advisors, which were partly offset by lower distribution fees.

Operating Expenses Analysis

Distribution expenses increased $2.3 million, or 2% sequentially, in correlation with the increase in underwriting and distribution revenues. Compared to the third quarter of 2017, expenses increased $9.7 million, or 9%, largely in line with the increase in underwriting and distribution revenues.

Compensation and benefits expenses declined $1.3 million, or 2% sequentially. The second quarter of 2018 included severance charges of $4.4 million, which were partly offset in the current quarter by increased incentive compensation due to improved fund performance. Compared to the third quarter of 2017, expenses declined $5.1 million, or 7%, due primarily to lower pension costs due to the plan freeze and a discretionary 401(k) contribution in 2017.

General and administrative expenses declined $1.6 million, or 8% sequentially, due primarily to lower usage of consultants and, to a lesser degree, lower sales convention costs. Compared to the third quarter of 2017, expenses declined $5.8 million, or 25%, due to lower legal costs and lower consulting costs, as a number of significant projects were completed in late 2017 or early 2018.

Technology expenses declined $1.8 million, or 11% sequentially, and declined $0.6 million, or 4% compared to the third quarter of 2017, as we continue to decommission older systems and replace them with more cost-effective solutions.

Depreciation expense included a charge of $2.4 million during the current quarter to adjust the useful life on certain internally developed software assets.

Investment and other income increased $31.6 million compared to the same quarter in 2017 due primarily to net gains related to the freeze of our pension plan in September of 2017.

Income taxes declined $16.4 million compared to the same quarter in 2017 due primarily to the lower tax rate as a result of the Tax Reform Act, which lowered the 2018 statutory rate to 21% compared to 35% in 2017.

___________________________________________

¹ Net income represents net income attributable to Waddell & Reed Financial, Inc.


















Assets Under Management (in millions)























Three Months Ended


Sep. 30,

Dec. 31,

Mar. 31,

Jun. 30,

Sep. 30,



2017


2018
Unaffiliated ¹
















Beginning assets

$
30,307


$
31,062


$
31,133


$
31,055


$
30,782


Sales ²


1,790



1,577



2,245



1,779



1,589


Redemptions


(2,486
)


(2,912
)


(2,692
)


(2,646
)


(2,425
)

Net exchanges


213



316



247



284



360


Net Flows


(483
)


(1,019
)


(200
)


(583
)


(476
)

Market action


1,238



1,090



122



310



866


Ending assets

$
31,062


$
31,133


$
31,055


$
30,782


$
31,172


Annualized organic growth rate


(6.4
)
%

(13.1
)
%

(2.6
)
%

(7.5
)
%

(6.2
)
%
Annualized redemption rate ³


33.0

%

37.9

%

35.8

%

34.9

%

31.8

%
Institutional
















Beginning assets

$
7,036


$
6,365


$
6,289


$
6,449


$
5,250


Sales ²


68



66



552



153



83


Redemptions


(1,139
)


(521
)


(604
)


(1,652
)


(535
)

Net exchanges


–



–



–



–



–


Net Flows


(1,071
)


(455
)


(52
)


(1,499
)


(452
)

Market action


400



379



212



300



389


Ending assets

$
6,365


$
6,289


$
6,449


$
5,250


$
5,187


Annualized organic growth rate


(60.9
)
%

(28.6
)
%

(3.3
)
%

(93.0
)
%

(34.4
)
%
Annualized redemption rate ³


67.3

%

32.2

%

37.8

%

115.4

%

40.8

%
Broker-Dealer
















Beginning assets

$
43,084


$
43,472


$
43,660


$
42,707


$
42,619


Sales ²


1,024



1,077



1,001



1,002



874


Redemptions


(2,049
)


(2,026
)


(1,958
)


(1,770
)


(1,612
)

Net exchanges


(213
)


(316
)


(247
)


(284
)


(360
)

Net Flows


(1,238
)


(1,265
)


(1,204
)


(1,052
)


(1,098
)

Market action


1,626



1,453



251



964



1,662


Ending assets

$
43,472


$
43,660


$
42,707


$
42,619


$
43,183


Annualized organic growth rate


(11.5
)
%

(11.6
)
%

(11.0
)
%

(9.9
)
%

(10.3
)
%
Annualized redemption rate ³


16.4

%

16.1

%

15.1

%

14.4

%

12.8

%
Consolidated Total
















Beginning assets

$
80,427


$
80,899


$
81,082


$
80,211


$
78,651


Sales²


2,882



2,720



3,798



2,934



2,546


Redemptions


(5,674
)


(5,459
)


(5,254
)


(6,068
)


(4,572
)

Net exchanges


–



–



–



–



–


Net Flows


(2,792
)


(2,739
)


(1,456
)


(3,134
)


(2,026
)

Market action


3,264



2,922



585



1,574



2,917


Ending assets

$
80,899


$
81,082


$
80,211


$
78,651


$
79,542


Annualized organic growth rate


(13.9
)
%

(13.5
)
%

(7.2
)
%

(15.6
)
%

(10.3
)
%
Annualized redemption rate ³


27.1

%

25.7

%

24.8

%

29.8

%

22.1

%

(1)

Unaffiliated includes National channel (home office and wholesale), Defined Contribution Investment Only “DCIO”, Registered Investment Advisor “RIA” and Variable Annuity “VA”.
(2)

Sales is primarily gross sales (net of sales commissions). This amount also includes net reinvested dividends and capital gains, and investment income.
(3)

Excludes Money Market.












Fund Rankings ¹


1 Year


3 Years


5 Years

Lipper










Funds ranked in top half


69
%

42
%

51
%
Assets ranked in top half


76
%

56
%

55
%
MorningStar










Funds ranked in top half


57
%

35
%

45
%
Assets ranked in top half


54
%

42
%

57
%












MorningStar Ratings ¹


Overall


3 Years


5 Years

Funds with 4/5 stars


41
%

22
%

32
%
Assets with 4/5 stars


54
%

28
%

47
%

(1)

Based on class I share, which reflects sales and asset concentrations.


























Three Months Ended

Broker-Dealer


Sep. 30,


Dec. 31,


Mar. 31,


Jun. 30,


Sep. 30,

(in millions)


2017



2018

Assets under administration (AUA)





















Advisory assets


$
20,734



$
21,613



$
22,050



$
22,868



$
23,653


Non-advisory assets



34,856




35,073




34,216




34,210




34,468


Total assets under administration



55,590




56,686




56,266




57,078




58,121
























Net new advisory assets ¹


$
420



$
129



$
392



$
315



$
(87
)

Net new non-advisory assets ^{1, 2}



(965
)



(1,047
)



(983
)



(916
)



(931
)

Total net new AUA ^1,2



(545
)



(918
)



(591
)



(601
)



(1,018
)























Annualized advisory AUA growth ³



8.6

%


2.5

%


7.3

%


5.7

%


(1.5
)
%
Annualized AUA growth ³



(4.0
)
%


(6.6
)
%


(4.2
)
%


(4.3
)
%


(7.1
)
%






















Advisor count



1,481




1,367




1,170




1,130




1,074


Avg. trailing 12-month revenue per advisor ⁴ (in thousands)


$
240



$
256



$
285



$
314



$
350


Advisor associate count



262




265




327




339




351

(1)

Net new assets is calculated as total client deposits and net transfers less client withdrawals.
(2)

Excludes activity related to products held outside of our platform. These assets represent less than 10% of total AUA.
(3)

Annualized growth is calculated as annualized quarterly net new assets divided by beginning assets under administration.
(4)

Production per advisor is calculated as trailing 12-month total underwriting and distribution fees less “other” underwriting and distribution fees divided by the average number of financial advisors. “Other” underwriting and distribution fees predominantly includes fees paid by independent advisors for programs and services.





























Unaudited Consolidated Statements of Income (in thousands, except per share data and margin)
































Three Months Ended


















Sep. 30,


Jun. 30,


Sep. 30,


Sequential Qtr.


Year-over-Year Qtr.




2018


2018


2017


Change


%


Change


%

Revenues:



























Investment management fees


$
129,302



$
130,391



$
134,149



$
(1,089
)


(0.8
)
%

$
(4,847
)


(3.6
)
%
Underwriting and distribution fees



140,308




137,873




128,892




2,435



1.8

%


11,416



8.9

%
Shareholder service fees



25,508




27,074




26,406




(1,566
)


(5.8
)
%


(898
)


(3.4
)
%
Total



295,118




295,338




289,447




(220
)


(0.1
)
%


5,671



2.0

%
Operating expenses:



























Distribution ¹



116,591




114,315




106,878




2,276



2.0

%


9,713



9.1

%
Compensation and benefits



64,561




65,828




69,636




(1,267
)


(1.9
)
%


(5,075
)


(7.3
)
%
General and administrative



17,559




19,143




23,400




(1,584
)


(8.3
)
%


(5,841
)


(25.0
)
%
Technology



15,414




17,235




16,039




(1,821
)


(10.6
)
%


(625
)


(3.9
)
%
Occupancy



7,148




6,969




7,645




179



2.6

%


(497
)


(6.5
)
%
Marketing and advertising



2,461




2,896




3,197




(435
)


(15.0
)
%


(736
)


(23.0
)
%
Depreciation



8,141




5,819




5,230




2,322



39.9

%


2,911



55.7

%
Subadvisory fees



3,767




3,683




3,566




84



2.3

%


201



5.6

%
Intangible asset impairment



–




1,200




–




(1,200
)


N/M




–



N/M


Total



235,642




237,088




235,591




(1,446
)


(0.6
)
%


51



0.0

%
Operating income



59,476




58,250




53,856




1,226



2.1

%


5,620



10.4

%
Investment and other income



1,697




841




33,293




856



101.8

%


(31,596
)


(94.9
)
%
Interest expense



(1,555
)



(1,551
)



(2,796
)



(4
)


(0.3
)
%


1,241



44.4

%
Income before provision for income taxes



59,618




57,540




84,353




2,078



3.6

%


(24,735
)


(29.3
)
%
Provision for income taxes



13,105




13,284




29,499




(179
)


(1.3
)
%


(16,394
)


(55.6
)
%
Net income



46,513




44,256




54,854




2,257



5.1

%


(8,341
)


(15.2
)
%
Net income (loss) attributable to redeemable noncontrolling interests



208




(222
)



1,272




430



193.7

%


(1,064
)


(83.6
)
%
Net income attributable to Waddell & Reed Financial, Inc.


$
46,305



$
44,478



$
53,582



$
1,827



4.1

%

$
(7,277
)


(13.6
)
%
Net income per share, basic and diluted:


$
0.58



$
0.55



$
0.64
















Weighted average shares outstanding - basic and diluted



79,595




81,449




83,476
















Operating margin



20.2

%


19.7

%


18.6

%










































(1) Distribution expense



























Unaffiliated



28,116




28,686




31,778
















Broker-dealer



88,475




85,629




75,100



















$
116,591



$
114,315



$
106,878


















Unaudited Consolidated Statements of Income (in thousands, except per share data and margin)





















Nine Months Ended











Sep. 30,


Sep. 30,







2018


2017


Change


%

Revenues:
















Investment management fees


$
393,385



$
395,463



$
(2,078
)


(0.5
)
%
Underwriting and distribution fees



416,222




386,499




29,723



7.7

%
Shareholder service fees



78,464




80,706




(2,242
)


(2.8
)
%
Total



888,071




862,668




25,403



2.9

%
Operating expenses:
















Distribution ¹



345,376




324,375




21,001



6.5

%
Compensation and benefits



199,174




202,003




(2,829
)


(1.4
)
%
General and administrative



56,240




68,882




(12,642
)


(18.4
)
%
Technology



49,293




50,796




(1,503
)


(3.0
)
%
Occupancy



21,081




22,978




(1,897
)


(8.3
)
%
Marketing and advertising



7,638




9,072




(1,434
)


(15.8
)
%
Depreciation



19,262




15,626




3,636



23.3

%
Subadvisory fees



11,158




9,457




1,701



18.0

%
Intangible asset impairment



1,200




1,500




(300
)


(20.0
)
%
Total



710,422




704,689




5,733



0.8

%
Operating income



177,649




157,979




19,670



12.5

%
Investment and other income



5,354




39,302




(33,948
)


(86.4
)
%
Interest expense



(4,908
)



(8,370
)



3,462



41.4

%
Income before provision for income taxes



178,095




188,911




(10,816
)


(5.7
)
%
Provision for income taxes



41,355




74,988




(33,633
)


(44.9
)
%
Net income



136,740




113,923




22,817



20.0

%
Net (loss) income attributable to redeemable noncontrolling interests



(380
)



2,408




(2,788
)


(115.8
)
%
Net income attributable to Waddell & Reed Financial, Inc.


$
137,120



$
111,515



$
25,605



23.0

%
Net income per share, basic and diluted:


$
1.69



$
1.33









Weighted average shares outstanding - basic and diluted



81,372




83,719









Operating margin



20.0

%


18.3

%
























(1) Distribution expense
















Unaffiliated



87,155




98,684









Broker-dealer



258,221




225,691












$
345,376



$
324,375














Underwriting and distribution fees (in thousands)
















For the three months ended Sep. 30, 2018



Unaffiliated


Broker-Dealer


Total
Fee-based asset allocation product revenues


$
–


$
69,468


$
69,468
Rule 12b-1 service and distribution fees



19,707



18,106



37,813
Sales commissions on front-end load mutual funds and variable annuity products



441



13,651



14,092
Sales commissions on other products



–



9,111



9,111
Other revenues



126



9,698



9,824
Total underwriting and distribution fees


$
20,274


$
120,034


$
140,308

















For the three months ended Jun. 30, 2018



Unaffiliated


Broker-Dealer


Total
Fee-based asset allocation product revenues


$
–


$
66,580


$
66,580
Rule 12b-1 service and distribution fees



20,051



18,109



38,160
Sales commissions on front-end load mutual funds and variable annuity products



507



13,823



14,330
Sales commissions on other products



–



9,065



9,065
Other revenues



148



9,590



9,738
Total underwriting and distribution fees


$
20,706


$
117,167


$
137,873

















For the three months ended Sep. 30, 2017



Unaffiliated


Broker-Dealer


Total
Fee-based asset allocation product revenues


$
–


$
61,115


$
61,115
Rule 12b-1 service and distribution fees



22,322



19,026



41,348
Sales commissions on front-end load mutual funds and variable annuity products



353



12,941



13,294
Sales commissions on other products



–



7,974



7,974
Other revenues



217



4,944



5,161
Total underwriting and distribution fees


$
22,892


$
106,000


$
128,892

















For the nine months ended Sep. 30, 2018



Unaffiliated


Broker-Dealer


Total
Fee-based asset allocation product revenues


$
–


$
201,565


$
201,565
Rule 12b-1 service and distribution fees



60,734



54,591



115,325
Sales commissions on front-end load mutual funds and variable annuity products



1,418



41,900



43,318
Sales commissions on other products



–



26,632



26,632
Other revenues



459



28,923



29,382
Total underwriting and distribution fees


$
62,611


$
353,611


$
416,222

















For the nine months ended Sep. 30, 2017



Unaffiliated


Broker-Dealer


Total
Fee-based asset allocation product revenues


$
–


$
176,184


$
176,184
Rule 12b-1 service and distribution fees



69,191



56,544



125,735
Sales commissions on front-end load mutual funds and variable annuity products



1,118



41,796



42,914
Sales commissions on other products



–



23,671



23,671
Other revenues



996



16,999



17,995
Total underwriting and distribution fees


$
71,305


$
315,194


$
386,499










Unaudited Condensed Balance Sheet (in thousands)




















Sep. 30,


Dec. 31,



2018


2017
Assets








Cash & cash equivalents (unrestricted)


$
270,478


$
207,829
Investment securities



588,407



700,492
Other assets



218,701



241,305
Property and equipment, net



69,340



87,667
Goodwill and intangible assets



145,869



147,069
Total assets


$
1,292,795


$
1,384,362
Liabilities, redeemable noncontrolling interests and equity








Short-term notes payable


$
–


$
94,996
Long-term debt



94,836



94,783
Other liabilities



288,316



307,190
Redeemable noncontrolling interests



16,133



14,509
Total stockholders’ equity



893,510



872,884
Liabilities, redeemable noncontrolling interests and equity


$
1,292,795


$
1,384,362
Shares outstanding (in thousands)



78,903



82,687






















Unaudited Condensed Cash Flow (in thousands)
































Three Months Ended


Nine Months Ended



Sep. 30,


Jun. 30,


Sep. 30,


Sep. 30,


Sep. 30,



2018


2018


2017


2018


2017
Cash provided by (used in):




















Operating activities


$
90,652



$
122,816



$
17,935



$
263,733



$
(12,166
)
Investing activities



(7,160
)



(6,541
)



(181,312
)



42,571




(198,980
)
Financing activities



(50,131
)



(60,557
)



(41,387
)



(242,636
)



(113,620
)
Net change during period


$
33,361



$
55,718



$
(204,764
)


$
63,668



$
(324,766
)

























Three Months Ended


Nine Months Ended



Sep. 30,


Jun. 30,


Sep. 30,


Sep. 30,


Sep. 30,
(in thousands, except number of shares)


2018


2018


2017


2018


2017
Shares repurchased




















Number of shares



1,424,612



2,098,625



190,056



4,519,546



904,410
Total cost


$
28,369


$
40,142


$
3,622


$
89,018


$
15,635
Dividend paid




















Rate per share


$
0.25


$
0.25


$
0.46


$
0.75


$
1.38
Total paid


$
20,050


$
20,591


$
38,455


$
61,531


$
115,691
Capital returned to stockholders


$
48,419


$
60,733


$
42,077


$
150,549


$
131,326

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 at 10:00 a.m. Eastern. During this call, Philip J. Sanders, CEO and CIO, will review our quarterly results. Live access to the teleconference will be available on the “Investor Relations” section of our Web site at ir.waddell.com. A Web cast replay will be made available shortly after the conclusion of the call and accessible for seven days.

Web Site Resources

We invite you to visit the Investor Relations section of our Web site at ir.waddell.com. Under the “Investor Information” tab you will find a link to presentations as well as to data tables, which include supplemental information schedules.

Past performance is no guarantee of future results. Please invest carefully.

About the Company

Through its subsidiaries, Waddell & Reed Financial, Inc. has provided investment management and financial planning services to clients throughout the United States since 1937. Today, we distribute our investment products through the unaffiliated channel (encompassing broker/dealer, retirement, and registered investment advisors), our broker-dealer channel (through independent financial advisors), and our Institutional channel (including defined benefit plans, pension plans, endowments and subadvisory relationships). For more information, visit ir.waddell.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the current views and assumptions of management with respect to future events regarding our business and industry in general. These forward-looking statements include all statements, other than statements of historical fact, regarding our financial position, business strategy and other plans and objectives for future operations, including statements with respect to revenues and earnings, the amount and composition of assets under management, distribution sources, expense levels, redemption rates, stock repurchases and the financial markets and other conditions. These statements are generally identified by the use of such words as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “forecast,” “estimate,” “expect,” “intend,” “plan,” “project,” “outlook,” “will,” “potential” and similar statements of a future or forward-looking nature. Readers are cautioned that any forward-looking information provided by us or on our behalf is not a guarantee of future performance. Actual results may differ materially from those contained in these forward-looking statements as a result of various factors, including but not limited to those discussed below. If one or more events related to these or other risks, contingencies or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from those forecasted or expected. Certain important factors that could cause actual results to differ materially from our expectations are disclosed in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2017, which include, without limitation:

The loss of existing distribution relationships or inability to access new distribution relationships;
A reduction in assets under our management on short notice, through increased redemptions in our distribution channels or our Funds, particularly those Funds with a high concentration of assets, or investors terminating their relationship with us or shifting their funds to other types of accounts with different rate structures;
The adverse ruling or resolution of any litigation, regulatory investigations and proceedings, or securities arbitrations by a federal or state court or regulatory body;
Changes in our business model, operations and procedures, including our methods of distributing our proprietary products, as a result of evolving fiduciary standards;
The introduction of legislative or regulatory proposals or judicial rulings that change the independent contractor classification of our financial advisors at the federal or state level for employment tax or other employee benefit purposes;
A decline in the securities markets or in the relative investment performance of our Funds and other investment portfolios and products as compared to competing funds;
Our inability to reduce expenses rapidly enough to align with declines in our revenues due to various factors, including fee pressure, the level of our assets under management or our business environment.
Non-compliance with applicable laws or regulations and changes in current legal, regulatory, accounting, tax or compliance requirements or governmental policies;
Our inability to attract and retain senior executive management and other key personnel to conduct our broker-dealer, fund management and investment advisory business;
A failure in, or breach of, our operational or security systems or our technology infrastructure, or those of third parties on which we rely; and
Our inability to implement new information technology and systems, or our inability to complete such implementation in a timely or cost effective manner.

The foregoing factors should not be construed as exhaustive and should be read together with other cautionary statements included in this and other reports and filings we make with the Securities and Exchange Commission, including the information in Item 1 “Business” and Item 1A “Risk Factors” of Part I and Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of Part II to our Annual Report on Form 10- K for the year ended December 31, 2017 and as updated in our quarterly reports on Form 10-Q for the year ending December 31, 2018. All forward-looking statements speak only as of the date on which they are made and we undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20181030005175/en/

Waddell & Reed Financial, Inc.
Investor Contact:
Nicole Russell, 913-236-1880
VP, Investor Relations
nrussell@waddell.com
or
Mutual Fund Investor Contact:
Call (888) WADDELL,
or
www.waddell.com
www.ivyfunds.com

Company Name:	Waddell & Reed Financial Inc.
Stock Symbol:	WDR
Market:	NYSE
Website:	waddell.com

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