Waddell & Reed Names New Portfolio Manager for its High Income Funds
July 09 2014 - 11:00AM
Business Wire
Waddell & Reed Financial, Inc. (NYSE: WDR) announced today
that William Nelson, portfolio manager of its high income mutual
funds — Ivy High Income Fund, Waddell & Reed Advisors High
Income Fund, Ivy Variable Insurance Portfolio High Income, and the
closed-end Ivy High Income Opportunities Fund (NYSE: IVH) — has
been terminated for “cause” as set forth in his employment
agreement. The Company indicated that Nelson’s termination was
unrelated to his portfolio management responsibilities.
The Company named Chad Gunther, assistant portfolio manager on
the high income funds and an 11-year Waddell & Reed veteran, to
replace Nelson as portfolio manager on the high income portfolios.
Gunther has been assistant portfolio manager on the high income
funds since 2008, and heads a six-person team responsible for the
funds.
“We are confident that Chad, and the high income team, will
continue to successfully manage the investment process that has led
to the funds’ competitive performance over time,” said Philip J.
Sanders, chief investment officer of Waddell & Reed Financial,
Inc. “This team is well-experienced, is steeped in a successful
investment process, and looks forward to continuing and expanding
its major role in the funds’ success.”
Through its subsidiaries, Waddell & Reed Financial, Inc.
provides investment management and financial planning services to
clients throughout the U.S. The firm had approximately $131 billion
in total assets under management at March 31, 2014. 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 the
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 Funds Distributor, Inc. serves as principal
underwriter and distributor to the Ivy Funds.
Investors should consider the investment objectives, risks,
charges and expenses of a fund carefully before investing. For a
prospectus, or if available, a summary prospectus, containing this
and other information for any of the Waddell & Reed Advisors or
Ivy Funds, call your financial advisor or visit
www.waddell.com or
www.ivyfunds.com.
Please read the prospectus or summary prospectus carefully
before investing.
Investment return and principal value will fluctuate, and it
is possible to lose money by investing. Past performance is not a
guarantee of future results.
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 or on behalf of the Company
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, 2013, 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;
- Our inability to provide sufficient
capital to support new investment products;
- The ability of mutual fund and other
investors to redeem their investments without prior notice or on
short notice;
- Our inability to implement new
information technology and systems, or inability to complete such
implementation in a timely or cost effective manner;
- Non-compliance with applicable laws or
regulations and changes in current legal, regulatory, accounting,
tax or compliance requirements or governmental policies;
- 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;
and
- Our inability to attract and retain
senior executive management and other key personnel to conduct our
broker/dealer, fund management and investment advisory
business.
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, 2013 and as updated in our
quarterly reports on Form 10-Q for the year ending December 31,
2014. All forward-looking statements speak only as 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.
Waddell & ReedInvestor contact:Nicole Russell,
913-236-1880VP, Investor RelationsorMedia Contact:Roger
Hoadley, 913-236-1993VP, Director of Communications
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