OVERLAND PARK, Kan.--(BUSINESS WIRE)--Waddell & Reed Financial, Inc. (NYSE: WDR) today reported preliminary assets under management of $123.7 billion as of December 31, 2014, a decrease of $5.2 billion, or 4%, from September 30, 2014.
The decrease in the fourth quarter of 2014 was primarily due to net outflows in the Wholesale channel partially offset by market appreciation. The fourth quarter included $8.8 billion in capital gain distributions by our funds, approximately $1.0 billion of which were not reinvested by clients in our funds. Total sales of $4.0 billion in the table below reflect a reduction of approximately $1.0 billion for capital gain distributions not reinvested in our funds. It is our practice to net capital gain distributions not reinvested against sales in the flow data we report.
The purpose of this release is to clarify flow data during the fourth quarter in light of reported industry data. We expect to announce fourth quarter financial and operational results before trading begins on the New York Stock Exchange on Tuesday, February 3, 2015.
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Changes in Assets Under Management |
Quarter-Ended December 31, 2014 |
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| (Amounts in millions) | Wholesale | Advisors | Institutional | Total | |||||||||||||
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Preliminary |
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| Beginning assets | $66,375 | $44,908 | $17,603 | $128,886 | |||||||||||||
| Sales* | 2,383 | 1,332 | 317 | 4,032 | |||||||||||||
| Redemptions | (8,592 | ) | (1,224 | ) | (663 | ) | (10,479 | ) | |||||||||
| Net Exchanges | 74 | (74 | ) | 0 | 0 | ||||||||||||
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Net flows |
(6,135 | ) | 34 | (346 | ) | (6,447 | ) | ||||||||||
| Market action | 95 | 575 | 541 | 1,211 | |||||||||||||
| Ending assets | $60,335 | $45,517 | $17,798 | $123,650 | |||||||||||||
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* Sales is primarily gross sales (net of sales commissions). This
amount also includes |
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Cautionary Statement
We have not yet finalized assets under management as of December 31, 2014. The preliminary information included in this news release reflects management's estimate based on currently available information. Estimates are subject to change. Accordingly, you should not place undue reliance upon this preliminary information.
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 Waddell & Reed 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 Waddell & Reed InvestEd Portfolios, while Ivy Funds Distributor, Inc. serves as principal underwriter and distributor to Ivy Funds.
