Philip J. Sanders Named as Successor
Waddell & Reed Financial, Inc. (NYSE: WDR) announced today
that the company’s Chairman of the Board and Chief Executive
Officer, Henry J. Herrmann, 73, will retire as Chief Executive
Officer effective August 1, 2016. Herrmann, who has served as CEO
since 2005 and Chairman since 2010, will remain as non-executive
Chairman of the Board. Herrmann's career in the financial services
industry spans 50 years, including 45 years with Waddell &
Reed.
The Board of Directors has appointed Senior Vice President and
Chief Investment Officer Philip J. Sanders, 56, to succeed Herrmann
as CEO in August, at which time he will also join the company's
Board of Directors. Sanders, who will continue to serve as CIO,
joined Waddell & Reed in 1998 as a portfolio manager and has
co-managed the company's large cap growth product suite since 2006.
During his tenure, Sanders has held various senior positions in the
investment management division, culminating in his appointment as
Senior Vice President and CIO in 2011. Prior to joining Waddell
& Reed, Sanders was an analyst and portfolio manager with Banc
of America Capital Management, the investment management division
of Bank of America from 1988 to 1998. He received his B.A. in
economics from the University of Michigan and an M.B.A. from the
University of North Carolina at Charlotte. Sanders is a CFA charter
holder and a member of the CFA Institute and the Kansas City CFA
Society.
“It has been my honor to serve our shareholders, clients and
employees over the course of my tenure,” said Herrmann “I believe
now is the time for the next generation to move the company forward
and position it for future growth. Having worked closely with Phil
over nearly two decades, I am confident that he is the right person
for the position. I look forward to assisting Phil with the
transition of responsibilities, as well as the opportunity to serve
as an advisor to management in my role as non-executive
Chairman."
“I have tremendous respect for Hank and intend to work closely
with him, and our entire executive team, to ensure an orderly
transition,” said Sanders. “Our focus will remain on delivering
long-term investment performance for our clients, executing on
current initiatives and making strategic investments that will
drive value for our shareholders and support the company’s
competitiveness for years to come.”
Speaking on behalf of the Board, Alan W. Kosloff, Lead
Independent Director, stated, “I would like to express to Hank the
Board's deep gratitude for his unwavering leadership and dedicated
service particularly throughout the challenging economic and market
environments experienced during his 11 years as CEO. He has been an
integral part of our growth and success and we look forward to his
continued contributions during the transition and in his service on
the Board thereafter. The Board is extremely confident in the
company's future and in Phil as CEO. His integrity, strong
leadership and deep expertise in the asset management industry will
be invaluable assets."
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 Wholesale channel (encompassing broker/dealer, retirement, and
registered investment advisors), our Advisors channel (our network
of financial advisors), and our Institutional channel (including
defined benefit plans, pension plans and endowments, 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, Ivy Funds Variable
Insurance Portfolios and InvestEd Portfolios, while Ivy Investment
Management Company serves as investment advisor to Ivy Funds.
Waddell & Reed, Inc. serves as principal underwriter and
distributor to the Waddell & Reed Advisors Group of Mutual
Funds, Ivy Funds Variable Insurance Portfolios and InvestEd
Portfolios, while Ivy Distributors, Inc. serves as principal
underwriter and distributor to Ivy Funds.
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 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, 2015, which include, without limitation:
- The loss of existing distribution
channels or inability to access new distribution channels;
- 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;
- 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;
- The ability of mutual fund and other
investors to redeem their investments without prior notice or on
short notice;
- Our inability to reduce expenses
rapidly enough to align with declines in our revenues, 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, 2015 and as updated in our
quarterly reports on Form 10-Q for the year ending December 31,
2016. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160523006301/en/
Waddell & Reed Financial, Inc.Investor contact:Nicole
Russell, 913-236-1880VP, Investor RelationsorMedia contact:Roger
Hoadley, 913-236-1993VP, Director of Communications
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