Waddell & Reed Financial, Inc. (NYSE: WDR) today reported
second quarter 2019 net income1 of $33.9 million, or $0.45 per
diluted share, compared to net income of $32.1 million, or $0.42
per diluted share, during the prior quarter and net income of $44.5
million, or $0.55 per diluted share, during the second quarter of
2018. The second quarter of 2019 included an income tax charge
related to shortfalls from the vesting of restricted shares of $2.4
million ($0.03 per diluted share). In addition, both the first and
second quarters of 2019 included a benefit from unrealized gains on
our seed and corporate investment portfolios of approximately $0.06
per diluted share.
Revenues of $270.2 million during the quarter increased $10.7
million compared to the prior quarter and decreased $25.2 million
compared to the second quarter of 2018. Operating expenses of
$228.9 million increased $5.0 million compared to the prior quarter
and declined $8.2 million compared to the same quarter in 2018. The
operating margin was 15.3% during the current quarter, compared to
13.7% during the prior quarter and 19.7% during the second quarter
of 2018.
Assets under management ended the quarter at $71.9 billion, a
slight increase compared to the prior quarter and a decrease of 9%
compared to the second quarter of 2018. Average assets under
management were $71.4 billion during the current quarter, compared
to $70.1 billion during the prior quarter and $80.0 billion during
the second quarter of 2018. Net outflows of $2.4 billion during the
current quarter were higher compared to net outflows of $1.8
billion in the first quarter of 2019 and improved compared to net
outflows of $3.1 billion in the second quarter of 2018. Sales of
$2.1 billion during the current quarter declined 14% and 27%
compared to the prior quarter and the second quarter of 2018,
respectively. Increased volatility in the equity markets during the
quarter again led to slower sales in key products as investors
preferred lower-risk fixed income and money market funds.
Redemptions increased slightly compared to the prior quarter and
improved 26% compared to the second quarter of 2018, as the prior
year included elevated, event-driven institutional redemptions.
Wealth management assets under administration ended the quarter
at $57.4 billion, a 2% increase compared to the first quarter of
2019, and a slight increase compared to the same quarter in 2018.
For both comparative periods, assets under administration increased
due to market appreciation. Average productivity per associated
independent financial advisor (“Advisor”), measured as average
trailing twelve-month revenue per Advisor, was $408 thousand for
the current quarter, rising 2% compared to the prior quarter and
30% compared to the same quarter in the prior year.
“This quarter we announced a number of significant, strategic
actions, all aimed at accelerating our business transformation and
enabling long-term organizational agility and effectiveness.
Throughout this journey, we remain focused on the key activities
that will drive shareholder value over the long-term, while
ensuring we’re delivering on our commitments to our clients and
employees every day,” said Philip J. Sanders, Chief Executive
Officer of Waddell & Reed Financial, Inc.
_________________________________________________________________
1 Net income represents net income attributable to Waddell &
Reed Financial, Inc.
Revenues Analysis
Investment management fees increased $3.1 million, or 3%,
compared to the first quarter of 2019, primarily due to a 2%
increase in average assets under management and one additional day
in the quarter. The effective management fee rate of 63.4 basis
points declined slightly compared to the prior quarter. Compared to
the second quarter of 2018, investment management fees declined
$17.5 million, or 13%, due to lower average assets under management
and a lower effective management fee rate, which was approximately
2 basis points lower due to previously-announced fee reductions in
selected mutual funds, consistent with the expectations.
Underwriting and distribution fees increased $7.2 million, or
6%, compared to the prior quarter primarily due to one additional
day and an increase in assets under administration during the
period. In addition, commissionable sales increased. Compared to
the same quarter in 2018, fees decreased $4.4 million, or 3%, due
to lower service and distribution fees and lower commissionable
sales, partially offset by an increase in advisory fees.
Shareholder service fees increased $0.4 million, or 2%, compared
to the first quarter of 2019 due to one additional day in the
quarter and a slight increase in average assets. Compared to the
second quarter of 2018, shareholder service fees declined $3.3
million, or 12%, primarily due to a decrease in average assets and
fewer accounts.
Operating Expenses Analysis
Distribution expenses in the current quarter increased $6.7
million, or 6%, as a result of the increase in underwriting and
distribution revenues. Compared to the second quarter of 2018,
expenses increased $2.2 million, or 2%, due to an increase in the
compensation grid for Advisors, effective January 1, 2019,
partially offset by lower service and distribution fees due to
lower average assets.
Compensation and benefits expenses decreased $3.0 million, or
5%, compared to the prior quarter. Share-based compensation
decreased $1.5 million primarily due to previously issued awards
vesting fully. In addition, payroll taxes decreased by $1.1 million
due to seasonality. Compared to the second quarter of 2018,
expenses decreased $4.0 million, or 6%, due to severance costs in
the second quarter of 2018.
General and administrative expenses increased $1.3 million, or
9%, primarily due to increases in certain discretionary categories
compared to the first quarter. Compared to the second quarter of
2018, expenses improved $3.1 million, or 16%, due to lower
contractor, legal and consulting costs as significant projects were
completed in 2018.
Technology, Occupancy and Marketing and advertising expenses
increased a combined $0.6 million compared to the prior quarter
primarily due to a seasonal increase in marketing. Compared to the
second quarter of 2018, these expenses declined $1.6 million, or
6%. Technology costs decreased due to lower shareholder servicing
expense resulting from fewer accounts. Occupancy costs decreased as
we realized cost savings from the closure of field offices.
Marketing and advertising expenses decreased due to the timing of
marketing activity.
Depreciation expense declined $0.8 million, or 13%, compared to
the prior quarter and declined $0.6 million, or 10%, compared to
the second quarter of 2018 primarily due to lower expense on
certain internally developed software assets.
Investment and Other Income
Investment and other income was relatively consistent with the
prior quarter as both quarters included a benefit from unrealized
gains on our seed and corporate investment portfolios of
approximately $0.06 per share. Compared to the second quarter of
2018, investment and other income increased $8.2 million primarily
due to market appreciation and increased interest income from our
corporate investment portfolio.
Assets Under Management (in
millions)
Three Months Ended
Jun. 30,
Mar. 31,
Jun. 30,
Prior Qtr.
Year-over-Year Qtr.
2019
2019
2018
Change
%
Change
%
Unaffiliated 1
Beginning assets
$
27,506
$
24,977
$
31,055
$
2,529
10
%
$
(3,549
)
(11
)%
Sales 2
1,291
1,593
1,779
(302
)
(19
)%
(488
)
(27
)%
Redemptions
(2,441
)
(2,306
)
(2,646
)
(135
)
(6
)%
205
8
%
Net exchanges
303
276
284
27
10
%
19
7
%
Net Flows
(847
)
(437
)
(583
)
(410
)
(94
)%
(264
)
(45
)%
Market action
886
2,966
310
(2,080
)
(70
)%
576
186
%
Ending assets
$
27,545
$
27,506
$
30,782
$
39
0
%
$
(3,237
)
(11
)%
Annualized organic growth rate
(12.3
)%
(7.0
)%
(7.5
)%
Annualized redemption rate 3
36.7
%
35.7
%
34.9
%
Institutional
Beginning assets
$
4,053
$
3,655
$
6,449
$
398
11
%
$
(2,396
)
(37
)%
Sales 2
54
141
153
(87
)
(62
)%
(99
)
(65
)%
Redemptions
(440
)
(357
)
(1,652
)
(83
)
(23
)%
1,212
73
%
Net exchanges
25
—
—
25
NM
25
NM
Net Flows
(361
)
(216
)
(1,499
)
(145
)
(67
)%
1,138
76
%
Market action
195
614
300
(419
)
(68
)%
(105
)
(35
)%
Ending assets
$
3,887
$
4,053
$
5,250
$
(166
)
(4
)%
$
(1,363
)
(26
)%
Annualized organic growth rate
(35.6
)%
(23.6
)%
(93.0
)%
Annualized redemption rate 3
46.1
%
36.6
%
115.4
%
Wealth Management
Beginning assets
$
40,095
$
37,177
$
42,707
$
2,918
8
%
$
(2,612
)
(6
)%
Sales 2
789
754
1,002
35
5
%
(213
)
(21
)%
Redemptions
(1,609
)
(1,626
)
(1,770
)
17
1
%
161
9
%
Net exchanges
(328
)
(276)
(284
)
(52
)
(19
)%
(44
)
(15
)%
Net Flows
(1,148
)
(1,148
)
(1,052
)
—
-
%
(96
)
(9
)%
Market action
1,497
4,066
964
(2,569
)
(63
)%
533
55
%
Ending assets
$
40,444
$
40,095
$
42,619
$
349
1
%
$
(2,175
)
(5)
%
Annualized organic growth rate
(11.5
)%
(12.4
)%
(9.9
)%
Annualized redemption rate 3
13.8
%
14.5
%
14.4
%
Consolidated Total
Beginning assets
$
71,654
$
65,809
$
80,211
$
5,845
9
%
$
(8,557
)
(11
)%
Sales 2
2,134
2,488
2,934
(354
)
(14
)%
(800
)
(27
)%
Redemptions
(4,490)
(4,289
)
(6,068
)
(201
)
(5
)%
1,578
26
%
Net exchanges
—
—
—
—
—
—
—
Net Flows
(2,356)
(1,801
)
(3,134
)
(555
)
(31
)%
778
25
%
Market action
2,578
7,646
1,574
(5,068
)
(66)
%
1,004
64
%
Ending assets
$
71,876
$
71,654
$
78,651
$
222
0
%
$
(6,775
)
(9
)%
Annualized organic growth rate
(13.2
)%
(10.9
)%
(15.6
)%
Annualized redemption rate 3
24.3
%
23.9
%
29.8
%
(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.
MorningStar Fund Rankings 1
1 Year
3 Years
5 Years
Funds ranked in top half
56
%
40
%
25
%
Assets ranked in top half
60
%
59
%
39
%
MorningStar Ratings 1
Overall
3 Years
5 Years
Funds with 4/5 stars
26
%
26
%
20
%
Assets with 4/5 stars
46
%
43
%
24
%
(1) Based on class I share, which reflects the largest
concentration of sales and assets.
Three Months Ended
Wealth Management
Jun. 30,
Mar. 31,
Jun. 30,
Prior Qtr.
Year-over-Year Qtr.
(in millions)
2019
2019
2018
Change
%
Change
%
Assets under administration (AUA)
Advisory assets
$
24,789
$
23,671
$
22,868
$
1,118
5
%
$
1,921
8
%
Non-advisory assets
32,641
32,418
34,210
223
1
%
(1,569
)
(5
)%
Total assets under administration
57,430
56,089
57,078
1,341
2
%
352
1
%
Net new advisory assets 1
$
253
$
220
$
315
$
33
15
%
$
(62
)
(20
)%
Net new non-advisory assets 1, 2
(885
)
(820
)
(916
)
(65
)
(8
)%
31
3
%
Total net new AUA 1, 2
(632
)
(600
)
(601
)
(32
)
(5
)%
(31
)
(5
)%
Annualized advisory AUA growth 3
4.3
%
4.2
%
5.7
%
Annualized AUA growth 3
(4.5
)%
(4.7
)%
(4.3
)%
Advisors and advisor associates
1,347
1,367
1,469
(20
)
(1
)%
(122
)
(8
)%
Avg. trailing 12-month revenue per advisor
4 (in thousands)
$
408
$
400
$
314
$
8
2
%
$
94
30
%
(1) Net new assets are calculated as total client deposits and
net transfers less client withdrawals. (2) Excludes activity
related to products held outside of our wealth management platform.
These assets represent less than 10% of total AUA. (3) Annualized
growth is calculated as annualized quarterly net new assets divided
by beginning AUA. (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 Advisors. “Other” underwriting and distribution fees
predominantly includes fees paid by Advisors for programs and
services.
Unaudited Consolidated
Statements of Income (in thousands, except per share data and
margin)
Three Months Ended
Jun. 30,
Mar. 31,
Jun. 30,
Prior Qtr.
Year-over-Year Qtr.
2019
2019
2018
Change
%
Change
%
Revenues:
Investment management fees
$
112,870
$
109,762
$
130,391
$
3,108
3
%
$
(17,521
)
(13
)%
Underwriting and distribution fees
133,495
126,245
137,873
7,250
6
%
(4,378
)
(3
)%
Shareholder service fees
23,789
23,403
27,074
386
2
%
(3,285
)
(12
)%
Total
270,154
259,410
295,338
10,744
4
%
(25,184
)
(9
)%
Operating expenses:
Distribution
116,477
109,794
114,315
6,683
6
%
2,162
2
%
Compensation and benefits (including
share-based compensation of $11,199, $12,693 and $14,902,
respectively)
61,876
64,843
65,828
(2,967
)
(5
)%
(3,952
)
(6
)%
General and administrative
16,037
14,704
19,143
1,333
9
%
(3,106
)
(16
)%
Technology
16,442
16,308
17,235
134
1
%
(793
)
(5
)%
Occupancy
6,701
6,715
6,969
(14
)
(0
)%
(268
)
(4
)%
Marketing and advertising
2,399
1,964
2,896
435
22
%
(497
)
(17
)%
Depreciation
5,228
6,001
5,819
(773
)
(13
)%
(591
)
(10
)%
Subadvisory fees
3,715
3,557
3,683
158
4
%
32
1
%
Intangible asset impairment
—
—
1,200
—
NM
(1,200
)
(100
)%
Total
228,875
223,886
237,088
4,989
2
%
(8,213
)
(3
)%
Operating income
41,279
35,524
58,250
5,755
16
%
(16,971
)
(29
)%
Investment and other income
9,025
9,453
841
(428
)
(5
)%
8,184
973
%
Interest expense
(1,552
)
(1,548
)
(1,551
)
(4
)
(0
)%
(1
)
(0
)%
Income before provision for income
taxes
48,752
43,429
57,540
5,323
12
%
(8,788
)
(15
)%
Provision for income taxes
14,190
10,671
13,284
3,519
33
%
906
7
%
Net income
34,562
32,758
44,256
1,804
6
%
(9,694
)
(22
)%
Net income (loss) attributable to
redeemable noncontrolling interests
614
705
(222
)
(91
)
(13
)%
836
377
%
Net income attributable to Waddell
& Reed Financial, Inc.
$
33,948
$
32,053
$
44,478
$
1,895
6
%
$
(10,530
)
(24
)%
Net income per share, basic and
diluted:
$
0.45
$
0.42
$
0.55
Weighted average shares outstanding -
basic and diluted
74,694
76,299
81,449
Operating margin
15.3
%
13.7
%
19.7
%
(1) Distribution expense
Unaffiliated
24,501
23,300
28,686
Wealth Management
91,976
86,494
85,629
$
116,477
$
109,794
$
114,315
Unaudited Consolidated
Statements of Income (in thousands, except per share data and
margin)
Six Months Ended
Jun. 30,
Jun. 30,
2019
2018
Change
%
Revenues:
Investment management fees
$
222,632
$
264,083
$
(41,451
)
(16
)%
Underwriting and distribution fees
259,740
275,914
(16,174
)
(6
)%
Shareholder service fees
47,192
52,956
(5,764
)
(11
)%
Total
529,564
592,953
(63,389
)
(11
)%
Operating expenses:
Distribution
226,271
228,785
(2,514
)
(1
)%
Compensation and benefits (including
share-based compensation of $23,892 and $29,670, respectively)
126,719
134,613
(7,894
)
(6
)%
General and administrative
30,741
38,681
(7,940
)
(21
)%
Technology
32,750
33,879
(1,129
)
(3
)%
Occupancy
13,416
13,933
(517
)
(4
)%
Marketing and advertising
4,363
5,177
(814
)
(16
)%
Depreciation
11,229
11,121
108
1
%
Subadvisory fees
7,272
7,391
(119
)
(2
)%
Intangible asset impairment
—
1,200
(1,200
)
(100
)%
Total
452,761
474,780
(22,019
)
(5
)%
Operating income
76,803
118,173
(41,370
)
(35
)%
Investment and other income
18,478
3,657
14,821
405
%
Interest expense
(3,100
)
(3,353
)
253
8
%
Income before provision for income
taxes
92,181
118,477
(26,296
)
(22
)%
Provision for income taxes
24,861
28,250
(3,389
)
(12
)%
Net income
67,320
90,227
(22,907
)
(25
)%
Net income (loss) attributable to
redeemable noncontrolling interests
1,318
(588
)
1,906
324
%
Net income attributable to Waddell
& Reed Financial, Inc.
$
66,002
$
90,815
$
(24,813
)
(27
)%
Net income per share, basic and
diluted:
$
0.87
$
1.10
Weighted average shares outstanding -
basic and diluted
75,492
82,275
Operating margin
14.5
%
19.9
%
(1) Distribution expense
Unaffiliated
47,800
59,039
Wealth Management
178,471
169,746
$
226,271
$
228,785
Underwriting and distribution fees
(in thousands)
For the three months ended
Jun. 30, 2019
Unaffiliated
Wealth Management
Total
Fee-based asset allocation product
revenues
$
—
$
70,220
$
70,220
Rule 12b-1 service and distribution
fees
16,329
16,327
32,656
Sales commissions on front-end load mutual
funds and variable annuity products
488
12,302
12,790
Sales commissions on other products
—
8,497
8,497
Other revenues
83
9,249
9,332
Total underwriting and distribution
fees
$
16,900
$
116,595
$
133,495
For the three months ended
Mar. 31, 2019
Unaffiliated
Wealth Management
Total
Fee-based asset allocation product
revenues
$
—
$
65,230
$
65,230
Rule 12b-1 service and distribution
fees
16,182
15,688
31,870
Sales commissions on front-end load mutual
funds and variable annuity products
438
12,020
12,458
Sales commissions on other products
—
7,606
7,606
Other revenues
92
8,989
9,081
Total underwriting and distribution
fees
$
16,712
$
109,533
$
126,245
For the three months ended
Jun. 30, 2018
Unaffiliated
Wealth Management
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 six months ended Jun.
30, 2019
Unaffiliated
Wealth Management
Total
Fee-based asset allocation product
revenues
$
—
$
135,450
$
135,450
Rule 12b-1 service and distribution
fees
32,511
32,015
64,526
Sales commissions on front-end load mutual
funds and variable annuity products
926
24,322
25,248
Sales commissions on other products
—
16,103
16,103
Other revenues
175
18,238
18,413
Total underwriting and distribution
fees
$
33,612
$
226,128
$
259,740
For the six months ended Jun.
30, 2018
Unaffiliated
Wealth Management
Total
Fee-based asset allocation product
revenues
$
—
$
132,097
$
132,097
Rule 12b-1 service and distribution
fees
41,027
36,486
77,513
Sales commissions on front-end load mutual
funds and variable annuity products
977
28,249
29,226
Sales commissions on other products
—
17,487
17,487
Other revenues
333
19,258
19,591
Total underwriting and distribution
fees
$
42,337
$
233,577
$
275,914
Unaudited Condensed Balance Sheet
(in thousands)
Jun. 30,
Dec. 31,
2019
2018
Assets
Cash & cash equivalents
(unrestricted)
$
168,926
$
231,997
Investment securities
697,903
617,135
Other assets
201,955
285,649
Property and equipment, net
54,029
63,429
Goodwill and intangible assets
145,869
145,869
Total assets
$
1,268,682
$
1,344,079
Liabilities, redeemable noncontrolling
interests and equity
Long-term debt
94,890
94,854
Other liabilities
302,021
354,312
Redeemable noncontrolling interests
15,115
11,463
Total stockholders’ equity
856,656
883,450
Liabilities, redeemable noncontrolling
interests and equity
$
1,268,682
$
1,344,079
Shares outstanding
73,712
76,790
Unaudited Condensed Cash Flow (in
thousands)
Three Months Ended
Six Months Ended
Jun. 30,
Mar. 31,
Jun. 30,
Jun. 30,
Jun. 30,
2019
2019
2018
2019
2018
Cash provided by (used in):
Operating activities
$
40,644
$
(17,497
)
$
122,816
$
23,147
$
173,081
Investing activities
9,946
(13,933
)
(6,541
)
(3,987
)
49,731
Financing activities
(53,605
)
(59,513
)
(60,557
)
(113,118
)
(192,505
)
Net change during period
$
(3,015
)
$
(90,943
)
$
55,718
$
(93,958
)
$
30,307
Three Months Ended
Six Months Ended
Jun. 30,
Mar. 31,
Jun. 30,
Jun. 30,
Jun. 30,
(in thousands, except number of
shares)
2019
2019
2018
2019
2018
Shares repurchased
Number of shares
2,142,894
2,226,325
2,098,625
4,369,219
3,094,934
Total cost
$
36,824
$
39,139
$
40,142
$
75,963
$
60,649
Dividend paid
Rate per share
$
0.25
$
0.25
$
0.25
$
0.25
$
0.25
Total paid
$
18,840
$
19,348
$
20,591
$
38,188
$
41,481
Capital returned to stockholders
$
55,664
$
58,487
$
60,733
$
114,151
$
102,130
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, 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 wealth management services to
clients throughout the United States since 1937. Today, we
distribute our investment products through the unaffiliated channel
under the IVY INVESTMENTS® brand (encompassing broker/dealer,
retirement, and registered investment advisors), our wealth
management channel (through independent financial advisors
associated with WADDELL & REED, INC.), 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, 2018, 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, 2018 and as updated in our
quarterly reports on Form 10-Q for the year ending December 31,
2019. 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/20190730005209/en/
Investor Contact: Mike Daley, Vice
President, Corporate Controller & Investor Relations, (913)
236-1795, mdaley1@waddell.com Mutual Fund Investor
Contact: Call (888) WADDELL, or visit www.waddell.com or
www.ivyinvestments.com.
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