Waddell & Reed Financial, Inc. (NYSE: WDR) today announced
that Thomas W. Butch has stepped down as Executive Vice President
and Chief Marketing Officer of Waddell & Reed Financial, Inc.
and as President of Waddell & Reed, Inc. (WRI) and Ivy
Distributors, Inc. (IDI). “On behalf of our Board and the
leadership team, I thank Tom for his dedicated service to the
company over the last 18 years and wish him much success in the
future,” said Philip J. Sanders, Chief Executive Officer and Chief
Investment Officer of Waddell & Reed Financial, Inc.
In conjunction with this transition, the company announced
several changes to its executive team that are expected to broaden
and provide greater support to the growth, productivity and
profitability initiatives outlined earlier this year.
Brent K. Bloss, who has served as Chief Financial Officer of the
company since March 2014, will be promoted to the role of Chief
Operating Officer effective immediately. Bloss, who joined the
company in January 2002 in the finance division, will continue to
serve as CFO through the filing of the company’s Annual Report on
Form 10-K for the year ended December 31, 2017. In his new role,
Bloss will be responsible for the day-to-day management of the
company’s operations and the delivery of strategic initiatives.
The Board intends to appoint Benjamin R. Clouse, who joined the
company in October 2015 and has served as the company’s Chief
Accounting Officer since February 2017, as CFO to succeed Bloss in
2018. Clouse is a CPA with 21 years of finance and accounting
experience, formerly serving as CFO of Executive AirShare
Corporation and in various leadership positions on the finance team
at H&R Block, Inc.
Effective immediately, Nikki F. Newton will become President of
IDI, a subsidiary that serves as the largest distributor of the Ivy
Funds. Newton, who has 25 years of industry experience and has been
with the company since January 1998, currently serves as Head of
Global Relationship Management for IDI, which includes National
Accounts and consultant relationships, as well as institutional
sales. In his new role, Newton will lead wholesale and
institutional distribution, and sales and product development, as
well as manage strategic relationships.
Also effective immediately, Shawn M. Mihal will become President
of WRI, a registered broker-dealer subsidiary that offers
securities and insurance products and investment advisory services
through financial advisors located throughout the U.S. Mihal
currently serves as Chief Operating Officer of WRI after joining
the company in March 2015 as Chief Regulatory Officer and Chief
Compliance Officer. Mihal has 18 years of industry experience and
will be responsible for all aspects of the company’s broker-dealer
operations.
“These appointments bring a depth of knowledge and expertise
that will serve our company, clients and stockholders well as we
prepare for the challenges and opportunities that lie ahead,” said
Sanders. “Combined with our other executive members, I am confident
that we have in place a leadership team with the requisite business
acumen to lead into the future and position the company for
long-term success amid a rapidly changing industry.”
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 retail unaffiliated distribution channel (encompassing
broker/dealer, retirement, and registered investment advisors), our
retail broker-dealer channel (through 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 and
internationally. Waddell & Reed Investment Management
Company serves as investment adviser to the Waddell & Reed
Advisors Group of Mutual Funds, while Ivy Investment Management
Company serves as investment adviser to Ivy Funds, Ivy
NextShares, Ivy Variable Insurance Portfolios and InvestEd
Portfolios, and investment adviser and global distributor to the
Ivy Global Investors SICAV, an umbrella UCITS fund range domiciled
in Luxembourg. Waddell & Reed, Inc. serves as
principal underwriter and distributor to the Waddell &
Reed Advisors Group of Mutual Funds and InvestEd Portfolios, while
Ivy Distributors, Inc. serves as principal underwriter and
distributor to Ivy Funds and Ivy Variable Insurance Portfolios.
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, 2016, 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;
- Changes in our business model,
operations and procedures, including our methods of distributing
our proprietary products, as a result of the Department of Labor’s
new fiduciary rule;
- 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, 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,
2016 and as updated in our quarterly reports on Form 10-Q for
the year ending December 31, 2017. 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/20171122005068/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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