Waddell & Reed

Advisory Programs1

We offer a wide range of fee-based, asset allocation advisory products that utilize innovative product structures and draw upon the expertise of world-class money managers.

Managed Allocation Portfolios (MAP)

A MAP account is a comprehensive, turn-key account offering a variety of features and benefits. MAP’s comprehensive asset allocation solution will help you build your fee-based practice that:

  • Exposes clients to a combination of investment managers.
  • Streamlines account management.
  • Saves time so you can focus on more complex client account needs.
  • Reduces client relationship risk.
  • Offers web-based processing tools.

The MAP Program consists of four distinctive fee-based asset allocation products: MAPChoice, MAPFlex, MAPSelect and MAPLatitude.

MAPChoice MAPFlex MAPSelect MapLatitude
5 model portfolios 5 model portfolios, flexibility to adjust portfolios 5 model portfolios Model portfolios with broad mix of equity/fixed-income investment choices
Mutual funds through Waddell & Reed Advisors Funds and Ivy Funds Mutual funds through a broad range of fund families Mutual funds portfolios that have been designed by SEI Investments Individual stocks, bonds, ETFs, mutual funds and other investments within allowed guidelines
Financial planning services integrated at various levels of client investment Financial planning services available through separate agreement Financial planning services available through separate agreement Financial planning services available through separate agreement
$15,000 investment minimum $50,000 investment minimum $50,000 investment minimum $50,000 investment minimum
Conditional rebalancing Conditional rebalancing Conditional rebalancing Rebalancing not included
Up to 2%2 annual asset-based fee 1.20 - 2.20%3 annual asset-based fee 0.60% - 2.23%3 annual asset-based fee 0.75% - 2.25%3 annual asset-based fee
Optional advance of first year’s advisory fee at point of sale, offering a unique opportunity to transition to a fee-based practice More than 3,000 fund choices in seven investment classes Convenience of a ‘check-the-box’ portfolio together with ongoing monitoring result in an easy to use managed account Most flexible managed account type, for clients with specific needs
  1. Fee-based programs are offered by Waddell & Reed, Inc., in its capacity as a registered investment advisor. For a full description of managed account services, including fees and expenses, review the Advisory Services brochure or Advisory Services for Your Waddell & Reed Choice Account brochure.
  2. Fee reduces as MAPChoice account reaches certain levels.
  3. The annual asset-based fee for MAPFlex, MAPSelect and MAPLatitude includes both a platform fee and a consultant fee. Advisors and clients have flexibility when setting the consultant fee. The annual asset-based fee range shown represents the maximum fee for the lowest investment level. Fees may be reduced as the account reaches certain asset levels.

Strategic Portfolio Allocation (SPA)

SPA is a tactical asset allocation program to help your clients achieve their goals through mutual fund investments using model portfolios matched to the client's risk tolerance. SPA combines powerful attributes - skilled investment management, quality investment products, and your professional expertise - all for one bundled fee to the client with no transaction fees. Several attributes make SPA an ideal fit for the right clients.

Product highlights:

  • 5 model portfolios with objectives ranging from conservative to aggressive, based on investment objectives, goals, risk tolerance and other factors.
  • Utilizes a variety of tools, including fundamental and computer-generated analysis, to develop and rebalance portfolios.
  • Investment selections from Waddell & Reed Advisors Funds and Ivy Funds.
  • Minimum investment – $25,000.
  • Maximum annual asset-based fee ranges from 2.00 to 2.25 percent depending upon the model selected. In addition, SPA fees are reduced as the account reaches certain asset levels.

Financial advisory services are made available through Waddell & Reed, Inc., in its capacity as a registered investment adviser. For a full description of managed account services, including fees and expenses, review the applicable advisory services brochure.

Lockwood Investment Strategies (LIS)

LIS represents the latest generation of advisory programs, known as unified managed accounts (UMAs), that provide professionally managed, diversified portfolios to help meet investors' wealth management needs. Lockwood Capital Management, Inc. serves as the portfolio manager, constructing an asset allocation strategy and selecting appropriate investments for each component of the portfolios.

LIS is based on the same philosophy that has long guided corporate pension funds and public retirement plans responsible for the retirement assets of thousands of employees. LIS offers a level of investment sophistication and ongoing oversight typically reserved for large institutional plans.

Product highlights:

  • 5 model portfolios managed with the intent to achieve broad diversification by asset class, investment style, money manager and investment vehicle.
  • Money managers and/or investment vehicle selection based on disciplined due diligence for each component of the asset allocation mix.
  • A mix of investment vehicles, including mutual funds, ETFs, separately managed accounts, individual securities and alternative investments, residing in a single account.
  • Periodic rebalancing to ensure the portfolio is aligned with the desired investment objective and changing market conditions.
  • Ongoing monitoring for tax efficiency and to reduce security overlap and sector concentration.
  • Minimum investment – $250,000.
  • Fee negotiable from 1.00 to 2.25 percent across all asset brackets.

Separately Managed Accounts (SMAs)

We offer a wide range of equity and fixed-income SMAs from leading asset managers. Our managed account partner, Lockwood Advisors, Inc. performs all due diligence and manager selection.

Lockwood employs state-of-the-art information-gathering and analytic technology, a committee-based decision-making process and, of course, years of experience to select managers for the SMA program. Their investment research process consists of initial screening, qualitative analysis, qualitative assessment, committee review and ongoing monitoring.

The Lockwood Investment Research team seeks to continually respond to the needs of the market by:

  • Applying a multi-disciplined approach designed to identify talented money management firms;
  • Introducing new money managers in response to client needs;
  • Maintaining ongoing monitoring and review of money managers;
  • Removing money managers when appropriate;
  • Communicating the results of their work to you on a timely basis.

Lockwood Advisors, Inc. is an SEC Registered Investment Adviser and an affiliate of Pershing LLC, each subsidiaries of The Bank of New York Mellon Corporation.