From Surf Wiki (app.surf) — the open knowledge base

Waddell & Reed

American asset management and financial planning company

Field	Value
name	Waddell & Reed Financial, Inc.
type	Subsidiary
industry
brands	Ivy Investments
logo	Waddellandreedlogo.png
hq_location_city	Kansas City, Missouri
hq_location_country	U.S.
founded
successor	Delaware Funds
owner	Macquarie Asset Management
defunct	2021
fate	Acquired
aum	US$48 Billion (5th May 2021)
website

Waddell & Reed Financial, Inc. was an American asset management and financial planning company founded in 1937 in Kansas City, Missouri. It was a publicly traded company from 1998 to 2021, and briefly had its headquarters in Overland Park, Kansas, and was planning a move back to Downtown Kansas City before the company was sold. It operated asset management and distribution subsidiaries, including Ivy Investment Management Company and Waddell & Reed Investment Management Company.

The company distributed products through three primary channels:

Advisors channel (a network of personal financial advisors around the country);
Wholesale channel (unaffiliated broker/dealers, registered investment advisors and retirement platforms); and the
Institutional channel (pension plans, defined benefit plans and endowments).

History

The company traces its history to September 3, 1937, when it was founded by Chauncey Waddell and Cameron Reed. The company was one of the first to sell funds following the Investment Company Act of 1940. Two of its funds—United Income Fund and United Accumulative Fund—were among the first mutual funds in the United States. Its first offices were in department stores.

Continental Investment Corporation of Boston bought Waddell & Reed for $82.5 million in 1969. Liberty National Insurance Holding Company, later renamed Torchmark Corporation acquired it for $160 million in 1981. Torchmark spun it off in 1998 in a deal where for 10 Torchmark shares held, Torchmark shareholders received 3 shares of Waddell & Reed.

In 2010 the company was put in the spotlight due to, according to a controversial SEC/CFTC report, being a major factor in the 2010 "Flash Crash". Reportedly, a bug in Waddell & Reed's compute algorithm, coupled with significant competing high frequency traders, created a massive crash in the price of S&P500 E-mini futures.

In February 2016, Waddell & Reed announced the purchase of at least 8.2% of the Spanish company Abengoa, which was in serious financial trouble.

In 2021, Waddell & Reed was purchased by Macquaire Asset Management, a division of Macquarie Group, becoming a wholly owned subsidiary in the process. Macquarie then sold Waddell & Reed's wealth management business to LPL Financial in April 2021 and merged the asset management business, Ivy Managements, into Delaware Funds.

References

"Waddell & Reed Financial Inc 13F annual report (2024) – wallmine.com".
[http://phx.corporate-ir.net/phoenix.zhtml?c=72585&p=irol-irhome Market Watch, Inc.] "Waddell & Reed Corporate Overview"
"Waddell & Reed, Inc. - Company History". Fundinguniverse.com.
"Torchmark Announces Spinoff of Waddell & Reed - re> BIRMINGHAM, Ala., Oct. 16 /PRNewswire/". Prnewswire.com.
(2015-04-22). "The 2010 'flash crash': how it unfolded".
(2016-02-15). "El fondo Waddell se convierte en el segundo accionista de Abengoa".
(30 April 2021). "Waddell & Reed's $1.7B sale to Macquarie Asset Management is official". Kansas City Business Journal.
(3 December 2020). "Macquarie Group to acquire Waddell & Reed Financial, Inc. and enter into a long-term partnership with LPL Financial".

Info: Wikipedia Source

This article was imported from Wikipedia and is available under the Creative Commons Attribution-ShareAlike 4.0 License. Content has been adapted to SurfDoc format. Original contributors can be found on the article history page.

american-companies-established-in-1937 financial-services-companies-established-in-1937 investment-management-companies-of-the-united-states companies-based-in-overland-park,-kansas corporate-spin-offs 2021-mergers-and-acquisitions asset-management-companies

Want to explore this topic further?

Ask Mako anything about Waddell & Reed — get instant answers, deeper analysis, and related topics.

Research with Mako

Free with your Surf account

Content sourced from Wikipedia, available under CC BY-SA 4.0.

This content may have been generated or modified by AI. CloudSurf Software LLC is not responsible for the accuracy, completeness, or reliability of AI-generated content. Always verify important information from primary sources.

Report