Waddell & Reed

Comprehensive Product Selection

Waddell & Reed boasts a unique position in the financial services industry as a full service broker/dealer, a financial planning pioneer and one of the nation’s most enduring asset management firms.

As an asset manager we’re proud to offer Waddell & Reed Advisors Funds and Ivy Funds. Both asset management enterprises are recognized for their long history of competitive investment performance across a broad span of asset classes. As a Waddell & Reed financial advisor, you’ll have exclusive access to the Waddell & Reed Advisors Funds, our flagship fund family dating to the inception of the mutual fund industry. You’ll also have direct access to the Ivy Funds, one of the fastest growing fund families over the last several years, according to a 2007 Financial Research Corporation study. In addition, you’ll have access to nearly 3,000 mutual funds from close to 75 fund families across all asset classes, sectors and disciplines.

As part of the Waddell & Reed family, you’ll have the opportunity to hear from – and interact regularly with – Waddell & Reed and Ivy investment professionals. This is a benefit for you and your clients as you gain and share the investment insights of acknowledged leaders in the investment management industry. This is the Waddell & Reed difference.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus or summary prospectus, if available, containing this and other information for the mutual funds offered by Waddell & Reed or Ivy Funds, visit www.waddell.com. Please read the prospectus or summary prospectus carefully before investing.

The Waddell & Reed Advisors Funds are managed by Waddell & Reed Investment Management Company and distributed by its subsidiary, Waddell & Reed, Inc. Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Funds Distributor, Inc.

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 asset management account offering a variety of features and benefits. You can chose from MAP, MAPPlus and MAPIncome.

  MAP MAPPlus MAPIncome4
Model Portfolios Six2 model portfolios Five model portfolios, flexibility to adjust portfolio allocations Six2 model portfolios in MAPIncome
Investment Selections Choose mutual funds from Waddell & Reed Advisors and Ivy Funds Choose mutual funds from Waddell & Reed Advisors and Ivy Funds MAPIncome: Mutual funds from Waddell & Reed Advisors and Ivy Funds
NIA: Multiple investment options
Financial Planning Services Available at various levels of client investment Available at various levels of client investment Available at various levels of client investment
Investment Minimum$15,000$25,000$50,000
Rebalancing Frequency Semi-Annually or Annually Quarterly, Semi-Annually or Annually MAPIncome: Semi-Annually or Annually
Annual Asset-Based Fee1.30%31.50%31.30%3
Additional Features Advanced commission at point-of-sale (three years of annual fees) offering a unique opportunity to transition/build to a fee-based practice. Independent fund analysis by Morningstar, the world leader in mutual fund research. Independent fund analysis by Morningstar, the world leader in mutual fund research. Bundled deferred variable annuity with a guaranteed lifetime withdrawal benefit (VA+GMWB).

1Fee-based programs are offered by Waddell & Reed, Inc., in its capacity as a registered investment advisor.
2Conservative model only available in MAP and MAPIncome.
3The fee shown for MAP, MAPPlus and MAPIncome is the maximum annual asset-based fee and is reduced as the account reaches certain asset levels.
4MAPIncome is comprised of two products: MAPIncome and Nationwide Income Architect (NIA ). NIA is a deferred variable annuity with a guaranteed lifetime withdrawal benefit issued by Nationwide Life Insurance Company.

Variable products are sold by prospectus. Both the product prospectus and underlying fund prospectuses for the Nationwide Income Architect can be obtained from your investment professional or by writing to Nationwide Life Insurance Company, P.O. Box 182021, Columbus, OH 43218-2021. Before investing, carefully consider the fund’s investment objectives, risks, charges and expenses. The product prospectus and underlying fund prospectuses contain this and other important information. Read the prospectuses carefully before investing.

Nationwide is not affiliated with any third party that may be authorized by the contract owner to direct allocations, including Waddell & Reed and its affiliates. Nationwide variable annuities are underwritten by Nationwide Life Insurance Company, Columbus, Ohio, a member of Nationwide Financial. The general distributor for variable annuity contracts is Nationwide Investment Services Corporation, member FINRA . In MI Only: Nationwide Investment Svcs. Corporation. An investor or prospective investor should review the fee, cost and payment information contained in the fund prospectuses and the MAP Advisory Services Brochure, in order to ensure that they are fully informed before making investment decisions and are aware of the potential conflicts of interest involved with MAP.

Strategic Portfolio Allocation (SPA)
SPA is a predictive, dynamic asset allocation program developed by Waddell & Reed in conjunction with Legend Advisory Corporation, a leader in the use of sophisticated artificial intelligence technology in the investment management process

Specifically, SPA uses a proprietary neural network to provide investment recommendations for its asset allocation programs. This neural network, known as the Asset Allocation Neural Network (AANN ), has been developed for the purpose of potentially reducing risk and enhancing portfolio returns within given risk tolerances.

Product highlights:

  • Five model portfolios
  • 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 – 2.00% to 2.25%

Waddell & Reed offers selling agreements with a wide range of 529 plans to help your clients manage the cost of higher education.

Among the available options is Arizona’s InvestEd 529 Plan. This 529 savings program features three fund-of-fund mutual funds managed by Waddell & Reed, available as either static investment options or as part of an age-based strategy, plus 17 individual mutual funds from the Ivy Funds family.

Investors should consider the investment objectives, risks, charges and expenses associated with the InvestEd Plan carefully before investing. This and other information is found in the Waddell & Reed InvestEd Portfolios, Inc. prospectus, the Ivy Funds prospectus, the InvestEd Program Overview, and the InvestEd Account Application available at www.waddell.com. Please read these materials carefully before investing.

An investor should also consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's 529 college savings plan.

The Waddell & Reed InvestEd Portfolios, Inc. are managed by Waddell & Reed Investment Management Company, while the Ivy Funds are managed by Ivy Investment Management Company, both of which are affiliates of Waddell & Reed, Inc.

Accounts are not insured by the State of Arizona, the Trust, the Arizona Commission for Postsecondary Education, or any other governmental entity, Waddell & Reed, Inc., or any affiliated or related party, and neither the principal deposited nor the investment return is guaranteed by any of the above referenced parties.

Insurance and annuities can be an important component of your advisor practice and a cornerstone of your clients’ risk management strategies. That’s why we offer a broad range of products from many of the industry’s leading providers.

Annuities
Annuities can address your clients’ needs for retirement income. We offer a variety of fixed and variable annuity options that allow your clients to accumulate money for their retirement and/or turn a lump sum of money into a guaranteed stream of income.

Life Insurance
Life Insurance provides a protective cushion through a valuable death benefit. Our life insurance products include term life, whole life, variable and variable universal life and group life.

Long-term Care Insurance
Long-term care insurance provides valuable support and financial resources that help cover the cost of long-term care in the event of an illness, accident, or through the normal effects of aging.

Disability Income Insurance
Disability income insurance provides monthly income to help maintain standard of living and offers the ability to retain independence and dignity without burdening others.

Health Insurance
Health insurance provides coverage for medical, prescription drug and dental expenses. We offer a variety of plans for both group and individuals as well as Medicare supplement plans.

Investors should consider the investment objectives, risks, charges and expenses of a variable life insurance policy and variable insurance contract, along with the underlying investments, carefully before investing. For a prospectus containing this and other information for any variable insurance product, contact the appropriate provider. Please read the prospectuses carefully before investing.

Variable annuities are suitable for long-term investing, particularly for retirement. All guarantees are contingent on the claims-paying ability of the issuing insurance company. Variable and fixed annuities may charge for separate account management fees and additional insurance costs, such as mortality and expense fees. Annuities have surrender charges for withdrawals in the early years and a 10 percent tax penalty for withdrawals prior to age 59 1/2.

Our Classic Brokerage service provides clients a way to transfer and consolidate financial holdings from other brokerage accounts to Waddell & Reed. While advisors do not make active recommendations on brokerage assets, the transfer of a client’s brokerage holdings to Waddell & Reed allows an advisor to create financial plans that encompass a client’s entire financial situation. In addition to providing for the transfer of existing assets, Classic Brokerage gives clients the flexibility to initiate purchases or sales of brokerage products and services from Waddell & Reed’s approved product and services list. The platform also lets clients purchase, exchange, and sell mutual funds from families other than the Waddell & Reed Advisors and Ivy Funds families.

Transferred brokerage assets and any other purchases the client makes will appear along with Waddell & Reed holdings on a consolidated Waddell & Reed/Ivy Funds statement.

Investment List
In providing basic brokerage services, we offer your clients the ability to organize assets in a brokerage account held with Pershing. They will have an extensive list of equity and fixed-income securities to choose from, including:

  • U.S. Exchange-Listed Equity Securities
  • Exchange-Traded Funds (ETFs) and American Depository Receipts (ADRs)
  • Over-The-Counter Equities (limited to the National Market System)
  • Investment-Grade Corporate Bonds
  • Investment-Grade Municipal Bonds
  • Treasury Bonds, Notes, Bills and Zero Coupon
  • Government Agency Bonds
  • Exchange-Traded Real Estate Investment Trusts (REITs)
  • Unit Investment Trusts (UIT) including closed-ended funds
  • Non-Propriety Mutual Funds

You and your clients also will be able to access additional services, including:

  • CorestoneTM – Asset management account that consolidates investing and check writing services.
  • NetExchange® Client – Online account access where clients can view their activity and holdings.

Certain securities are not available through Classic Brokerage.

You will be able to recommend appropriate plans to your clients, customized for their goals, income needs, age, tax situation and more. In addition, you will be positioned to help business owners retain quality employees, attract new talent, impact morale and avail themselves of a myriad of tax advantages by educating them on our wealth of retirement funding options. Products include:

Individual Plans

  • Traditional IRA
  • IRA Rollover
  • Roth IRA
  • Coverdell ESA

Employer-Sponsored Plans

  • 401(k)
  • Simplified Employee Pension (SEP)
  • Savings Incentive Match Plan for Employees IRA (SIMPLE IRA)
  • Profit Sharing
  • Money Purchase
  • Payroll Deduction IRA
  • Defined-Benefit
  • Target Benefit

Small-Business Owner Plans – Owner Only

  • Exclusive(k)
  • Simplified Employee Pension (SEP) IRA
  • Keogh Money Purchase/Profit Sharing
  • Defined Benefit

Non-Profit Plans

  • 403(b)
  • 401(k)
  • 401(a)
  • Employer Contribution
  • SEP IRA

Government Plans

  • 403(b)
  • SEP IRA
  • 401(a) Employer Contribution
  • 457

Retirement plan assets redeemed before age 59 ½ may be subject to federal and state taxes, sales charges and a 10 percent premature distribution penalty. Exceptions may apply.