Waddell & Reed Financial — Investor Presentation (May 2019)
16 slides from Waddell & Reed Financial's investor presentation, May 28, 2019
Slide 1: Forward looking statements
Forward looking statements This presentation 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 respe
Slide 2: Firm Overview
Firm Overview We work to consistently bring individual skills and innovative ideas together as we continue to adapt to a changing environment. Our distinct business model, refined across more than 80 years in the industry, is built upon a unique combination of manufacturing and distribution. mutual
Slide 3: WDR Investment Highlights
WDR Investment Highlights Diverse, High-Quality Product Offerings • • Diverse investment capabilities with strong performance in multiple strategies Progress on initiatives to improve product offerings, performance and distribution reach Effective and Long-Standing Distribution Capabilities • • Long
Slide 4: Executing our organic growth plans
Executing our organic STRENGTHEN INVESTMENT MANAGEMENT RESOURCES, PROCESSES AND RESULTS growth plans REINVIGORATE PRODUCT LINE AND SALES • Introduced seven equity strategies in a model-delivery format, providing the marketplace a new way to access existing strategies. Evaluated and realigned resourc
Slide 5: Asset Management Business Overview
Asset Management Business Overview Philip J. Sanders, CFA Chief Executive Officer, Chief Investment Officer - 30 years experience Daniel G. Scherman, CFA Chief Risk Officer, Independent Risk Management Group - 34 years experience Mark G. Beischel, CFA Global Director of Fixed Income - 25 years exper
Slide 6: Asset Management Assets Under Management
Asset Management Assets Under Management • AUM levels stabilizing, less concentrated and more balanced across products $120 $80 • Deep experience with equity, multi-asset and high-yield strategies, which represent approximately 89% of AUM at 3/31/19 $4 $40 • Significant investment in portfolio manag
Slide 7: Asset Management Performance
Asset Management Performance 1-year 3-year 5-year 1-year 3-year 5-year 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 % of Total Ending AUM by Morningstar • 1-year and 3-year performance for percentage of funds and percentage of assets ranked in top half st
Slide 8: Asset Management Distribution Footprint
Asset Management Distribution Footprint Open-end Funds, Closed-end Fund, Variable Insurance Portfolios, Model-Delivery SMAs, 529 Plan, ETMFs, Institutional Separate Accounts, Collective Investment Trusts Ivy Distributors, Inc. Amy J. Scupham SVP Distribution, President IDI 21 years experience Profes
Slide 9: Wealth Management Business Overview
Wealth Management Business Overview $60 $50 $40 $30 $20 $10 $0 2015 2016 2017 2018 1Q19 In billions Fee-Based Brokerage Advisors Licensed Associates Avg TGR per Advisor 2,100 450 400 350 300 250 200 150 100 50 - 1,800 + 1,500 $400K k to 999.9k 1,200 370 k to 749.9k 900 k to 499.9k 600 199.9k er 300
Slide 10: Wealth Management: Progress towards fully independent platform
Wealth Management Continued progress towards fully independent wealth management platform May 2019 Advisor workstation (WaddellOne) launched 2018 eMoney and Envestnet applications launched 2016 Pershing platform launched April 2019 Additional 4 fund families added to MAP Navigator; brings total fund
Slide 11: Waddell & Reed Financial, Inc. Financial Summary
Waddell & Reed Financial, Inc. Financial Summary $80 $0.80 $60 $0.60 $40 $0.40 $0.20 $20 $0.00 $0 1Q18 2Q18 3Q18 4Q18 1Q19 In millions 1Q18 2Q18 3Q18 4Q18 1Q19 Project E & DOL costs $480 $470 $469 • Operating income shifting towards recurring revenue streams and streamlined operations $460 • Field r
Slide 12: Strong Capital Position, Increased Flexibility
Strong Capital Increased Flexibility Position Cash & Cash Equivalents 1 Seed Capital Corporate Investments • Ample liquidity with cash and investments of $814 million as of 3/31/19 $800 $600 • Balanced capital management program with attractive dividend and an opportunistic share buyback program $40
Slide 13: Growth Opportunities
Growth Opportunities • Offer existing strategies in additional product structures and continued focus on improved performance • Continued focus on advisory programs to drive future sales and longer-term, relationship-based assets Product • Continued institutional approach and deployment of resources
Slide 14: WDR Management Team
WDR Management Team Mr. Phillip J. Sanders Chief Executive Officer and Chief Investment Officer Mr. Brent K. Bloss Executive Vice President and Chief Operating Officer Mr. Mark P. Buyle Senior Vice President, General Counsel, Chief Legal Officer and Secretary Mr. Benjamin R. Clouse Senior Vice Presi
Slide 15: Q&A
Q&A 16 Waddell & Reed Financial, Inc. (01/19)
Slide 16: Waddell & Reed
WADDELL Saal be
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