Morningstar - Waddell Reed Financial Inc. Class A (WDR) Waddell Reed Continues to Face Investment Performance Headwinds; Lowering FVE to $21 per Share

Report

Morningstar

Greggory Warren, CFA

EUR 147.86 For Business Accounts Only

Waddell & Reed Continues to Face Investment Performance Headwinds; Lowering FVE to $21 per Share

We've lowered our fair value estimate for narrow-moat-rated Waddell & Reed to $21 per share from $24 after the firm released weaker-than-expected second-quarter earnings. Total assets under management declined 9% sequentially and 28% year over year to $86.5 billion as the company continues to battle weak investment performance and a meaningful level of outflows. Organic growth was worse than we expected, with total outflows of $9.8 billion coming in below our forecast of $8.7 billion in outf...

26/07/2016 15 EN

Underlying

Waddell & Reed Financial Inc. Class A

Waddell & Reed Financial is a holding company. Through its subsidiaries, the company provides investment management and advisory services, investment product underwriting and distribution, and shareholder services administration to the Ivy Funds,Ivy Variable Insurance Portfolios, InvestEd Portfolios, Ivy High Income Opportunities Fund, and institutional accounts. The company also provides wealth management services, primarily to retail clients through Waddell & Reed, Inc. (W&R), and independent financial advisors associated with W&R, who provide financial planning and advice to their clients.

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US9300591008 New York Stock Exchange United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Greggory Warren, CFA

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Morningstar | Outflows on the Wane Again at Waddell & Reed During 1Q; No Change to $18 per Share FVE

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Waddell & Reed Continues to Face Investment Performance Headwinds; Lowering FVE to $21 per Share

Monthly LMI Update Independent Investment Research

WADDELL & REED FIN'L with less fundamental stars is reduced to Neutral

Morningstar | Outflows on the Wane Again at Waddell & Reed During 1Q; No Change to $18 per Share FVE

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Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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