Waddell & Reed Financial — Investor Presentation (November 2019)
15 slides from Waddell & Reed Financial's investor presentation, Nov 1, 2019
Slide 1: Investor Presentation November 2019
1 1 1 Investor Presentation NOVEMBER 2019
Slide 2: Forward-looking statements
2 2 2 This presentation contains "forward - looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amen ded, 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 event
Slide 3: Firm Overview
3 3 3 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. B
Slide 4: WDR Investment Highlights
4 4 4 WDR Investment Highlights Diverse, High - Quality Product Offerings • Diverse investment capabilities with strong performance in key strategies • Progress on initiatives to improve product offerings, performance and distribution reach Effective and Long - Standing Distribution Capabilities • L
Slide 5: Executing our organic growth plans
5 5 5 Executing our organic growth plans Focus Asset Management Wealth Management Product • Continued investment performance improvement across one - and three - year periods. • Driving evolution towards a multi - specialist model with broad asset class exposure • Deliver institutional caliber platf
Slide 6: Asset Management Business Overview
6 6 6 AT A GLANCE Asset Management Business Overview INVESTMENT TEAM LEADERSHIP AUM BY CHANNEL (as of 9/30/19) 94 INVESTMENT PROFESSIONALS (as of 9/30/19) TOP STRATEGIES BY AUM (as of 9/30/19) Executives 5 Portfolio Managers 32 Asst. Portfolio Managers* 9 Research Analysts 26 Economists 3 Derivative
Slide 7: Assets Under Management
7 7 7 Assets Under Management $30 $31 $25 $26 $42 $44 $37 $39 $8 $6 $4 $4 $0 $40 $80 $120 2016 2017 2018 3Q19 Unaffiliated Wealth Manager Institutional in billions Overview Net Flows AUM by Asset Class AUM Trend • AUM levels stabilizing, less concentrated and more balanced across products • Deep exp
Slide 8: Asset Management Performance: Ivy Funds Morningstar Rankings
8 8 8 Ivy Funds Morningstar Rankings % of Funds Ranked in Top Half Commentary Ivy Funds Morningstar Rankings % of Assets Ranked in Top Half Ivy Funds Morningstar Rankings % of Total Ending AUM by Morningstar 20% 30% 40% 50% 60% 70% 3Q18 4Q18 1Q19 2Q19 3Q19 1-year 3-year 5-year 30% 40% 50% 60% 70% 3Q
Slide 9: Asset Management Distribution Footprint
9 9 9 Asset Management Distribution Footprint Open - end Funds, Closed - end Fund, Variable Insurance Portfolios, Model - Delivery SMAs, 529 Plan, Institutional Separate Accounts, Collective Investment Trusts Ivy Distributors, Inc. Amy J. Scupham SVP Distribution, President IDI 21 years experience P
Slide 10: Wealth Management Business Overview
10 10 10 AT A GLANCE Wealth Management Business Overview Advisor Productivity 1,074 1,060 997 967 948 351 344 370 380 396 - 50 100 150 200 250 300 350 400 450 - 300 600 900 1,200 1,500 1,800 2,100 3Q18 4Q18 1Q19 2Q19 3Q19 Advisors Licensed Associates Avg TGR per Advisor Total Gross Revenue (in thous
Slide 11: Wealth Management platform positioned for future expansion
11 11 11 Wealth Management Wealth Management platform positioned for future expansion 2016 Pershing platform launched May 2017 MAP Navigator launched with 5 fund families July 2017 SPA Program launched September 2017 Passive / Smart Beta funds added to advisory programs 2018 eMoney and Envestnet app
Slide 12: Controllable Expenses, Operating Income, Earnings Per Share
12 12 12 Controllable Expenses 1 Operating Income Commentary Earnings Per Share • Operating income shifting towards recurring revenue streams, while benefitting from cost efficiencies • Field real estate exit to be completed in 2020 will shift approximately $20 million of costs from fixed costs to v
Slide 13: Strong Capital Position
13 13 13 Strong Capital Position Capital Position Commentary Investment Portfolio 3Q19 • High - quality, diversified investment portfolio primarily invested in investment grade corporate bonds (90%) with the remaining invested in commercial paper and US Treasury securities • Average duration at 1.6
Slide 14: WDR Management Team
14 14 14 WDR Management Team Mr. Philip J. Sanders Chief Executive 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 President and Chief Financ
Slide 15: Waddell
WADDELL ene
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