Waddell & Reed

Fund Detail

WRA Continental Income Fund
Class A Shares

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Fund Facts
Ticker Symbol UNCIX
CUSIP 930057757
Fund Code 627
Fund Type Specialty Funds
Fund Inception 6/9/1970
Class Inception 6/9/1970
Fiscal Year End June
Dividends Paid March, June, September, December
Fund Assets (as of 1/31/2016) $1.5 bil
Total Equity Holdings (as of 1/31/2016) 59
Total Holdings (as of 1/31/2016) 244
Portfolio Turnover Rate (as of 12/31/2015) 25%
Lipper Category Mixed-Asset Target Alloc Growth Funds
Morningstar Category Moderate Allocation
Benchmarks S&P 500 TR USD
Barclays US Govt/Credit TR USD
Daily Prices
as of 2/12/2016
Net Asset Value (NAV) $8.54
NAV Change ($) $0.12
NAV Change (%) 1.43%
Weekly NAV Change ($) ($0.16)
Weekly NAV Change (%) -1.84%
Public Offering Price (POP) $9.06
Historical Prices & Distributions
Please select a date
Fund Description

Balancing potential risk and reward in a complex world

Straightforward approach
A traditional balanced fund with predictable guardrails that generally invests two-thirds of its assets in U.S. equities and one-third of its assets in fixed-income securities.
Management discipline
Uses fundamental analysis and rigorous screening of stocks and bonds to determine portfolio composition.
Competitive track record
Seeks balanced, consistent growth and current income while managing risk. Manager utilizes a disciplined investment process that is designed to deliver consistent results.
Morningstar Style Box
Source: Morningstar
Returns and Expenses

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Performance at NAV does not include the effect of sales charges. Class A shares, including sales charges, reflects the maximum applicable front-end sales load.

Monthly Rates of Return
(Returns for periods of less than 1-yr are not annualized)
Average Annual Total Returns
as of 1/31/2016
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV -4.17% -3.32% 6.73% 7.36% 6.59% 9.22%
Fund with 5.75% sales charge -9.68% -8.89% 4.66% 6.10% 5.96% 9.07%
S&P 500 TR USD -4.96% -0.67% 11.30% 10.91% 6.48% N/A
Barclays US Govt/Credit TR USD 1.41% -1.06% 1.95% 3.67% 4.63% N/A
Quarterly Rates of Return
(Returns for periods of less than 1-yr are not annualized)
Average Annual Total Returns
as of 12/31/2015
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV -0.48% -0.48% 9.62% 8.70% 7.38% 9.34%
Fund with 5.75% sales charge -6.23% -6.23% 7.50% 7.42% 6.74% 9.19%
S&P 500 TR USD 1.38% 1.38% 15.13% 12.57% 7.31% N/A
Barclays US Govt/Credit TR USD 0.15% 0.15% 1.21% 3.39% 4.47% N/A
Lipper Mixed-Asset Target Alloc Growth Funds -1.65% -1.65% 7.78% 6.80% 5.10% N/A
Expense Ratios
as of 10/30/2015
Net 1.15%
Gross 1.15%
12-Month Trailing Distribution Yield
as of 1/31/2016
NAV 1.21%
With sales charge 1.15%
Annualized 30-Day SEC Yield
as of 1/31/2016
Subsidized 1.34%
Unsubsidized 1.33%
Growth of a $10,000 Investment
through 1/31/2016
 Continental Income A
 S&P 500 TR USD
 Barclays US Govt/Credit TR USD

Assumes an investment over 10 years or life of the share class, reinvestment of dividends and capital gains, and does not include the effect of sales charges or taxes.

Ratings and Rankings
Lipper Rankings
as of 1/31/2016
Category: Mixed-Asset Target Alloc Growth Funds
  Rank Percentile
1 Year 149 / 494 31
3 Year 107 / 460 24
5 Year 69 / 409 17
10 Year 12 / 308 4

Rankings are based on average annual total returns, but do not consider sales charges.

Morningstar Ratings
as of 1/31/2016
Category: Moderate Allocation
Overall (out of 860 Moderate Allocation)
3 Year (out of 860 Moderate Allocation)
5 Year (out of 742 Moderate Allocation)
10 Year (out of 501 Moderate Allocation)

Ratings are based on risk-adjusted returns.

Portfolio Composition
(as a % of net assets as of 1/31/2016)
Domestic Common Stock 56.28%
Corporate Bonds 29.28%
Foreign Common Stock 5.79%
Preferred Stock 4.42%
Cash and Cash Equivalents 3.41%
Senior Loans 0.64%
Government Bonds 0.18%
Sector Allocation
(as a % of equity holdings as of 1/31/2016)
Consumer Discretionary 20.9%
Health Care 16.6%
Information Technology 15.8%
Financials 15.1%
Industrials 10.6%
Consumer Staples 8.1%
Energy 7.1%
Telecommunication Services 3.0%
Materials 2.9%
Equity Country Allocation
(as a % of equity holdings as of 1/31/2016)
United States 90.1%
Ireland 3.6%
Israel 3.3%
Belgium 1.6%
United Kingdom 1.4%
Fixed Income Country Allocation
(as a % of bond holdings as of 1/31/2016)
United States 79.4%
United Kingdom 5.2%
France 3.3%
Canada 3.1%
Australia 2.6%
Netherlands 2.4%
Japan 1.4%
Singapore 1.2%
Guernsey 0.6%
Sweden 0.5%
Hong Kong 0.4%
Mexico 0.2%
Top 10 Equity Holdings
(as a % of net assets as of 1/31/2016)
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company.JPMorgan Chase & Co. 2.11%
The Home Depot, Inc. (The Home Depot) is a home improvement retailer. The Home Depot stores sell an assortment of building materials, home improvement and lawn and garden products and provide a number of services.Home Depot, Inc. (The) 2.09%
Carnival Corporation operates as a cruise and vacation company.Carnival Corp. 1.99%
The Company has businesses engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing its products and services nationally and others in its markets located in Pennsylvania, Virginia, Missouri, Wisconsin and Georgia. It also provides products and services internationally. PNC Financial Services Group, Inc. (The) 1.89%
Union Pacific Corporation owns the largest railroad in the U.S. It's diversified business mix includes agricultural products, automotive, chemicals, energy, industrial products and intermodal.Union Pacific Corp. 1.81%
The Boeing Company (Boeing) is an aerospace company. Boeing is engaged in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services.Boeing Co. (The) 1.75%
Broadcom Corporation engages in the design, development, and supply of semiconductors for wired and wireless communications equipment manufacturers.Broadcom Corp., Class A 1.72%
McDonald's Corporation operates the world's largest chain of fast-food restaurants, each one operated by a franchisee, an affiliate or the corporation itself.McDonald's Corp. 1.62%
L Brands, Inc. operates as a specialty retailer of women?'s intimate and other apparel, beauty and personal care products, and accessories. The company was formerly known as Limited Brands, Inc. and changed its name to L Brands, Inc. in March 2013. Limited Brands, Inc. 1.61%
Cognizant Technology Solutions Corporation is a provider of custom information technology (IT) consulting and technology services, and outsourcing services.Cognizant Technology Solutions Corp., Class A 1.51%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 12/31/2015)
(as a % of bond holdings as of 1/31/2016)
Government Bonds 0.6 %
NonRated 0.5 %
AA 8.5 %
A 22.1 %
BBB 36.6 %
BB 19.4 %
B 3.6 %
CCC 8.7 %

Quality: Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

(as a % of bond holdings as of 1/31/2016)
<1 Year 11.4 %
1-5 Years 65.4 %
5-10 Years 20.1 %
10-20 Years 0.3 %
>20 Years 2.8 %
Average Maturity 4.26 years
Effective Duration 3.47 years

Average maturity and effective duration include bonds, cash and cash equivalents.

Top 10 Industry Allocation
(as a % of equity holdings as of 1/31/2016)
Pharmaceuticals 12.3%
Semiconductors 6.0%
Other Diversified Financial Services 5.4%
Packaged Foods & Meats 5.0%
Aerospace & Defense 4.5%
Oil & Gas Exploration & Production 4.1%
Hotels, Resorts & Cruise Lines 3.6%
Home Improvement Retail 3.1%
Integrated Telecommunication Services 3.0%
Regional Banks 2.8%
Portfolio Management
Manager Name Company Name Years in Industry Years with Fund
Matthew A. Hekman is an assistant vice president of Ivy Investment Management Company and Waddell & Reed Investment Management Company. Mr. Hekman joined the firm in June 2003 as a performance analyst. He was promoted to vestment analyst in March 2005. He joined the large-cap growth team in January 2009. He was appointed assistant vice president and assistant portfolio manager in January 2010. Mr. Hekman joined the large-cap value team as assistant portfolio manager in September 2011. His research responsibilities were concentrated in large-cap value stocks, aerospace and defense, and chemicals. In August 2014, Mr. Hekman was appointed portfolio manager of the Ivy Balanced Fund, Ivy Funds VIP Balanced and Waddell & Reed Advisors Continental Income Fund. Prior to joining the firm, Mr. Hekman was a manager of custody administration and investment accounting with State Street Corporation. He was responsible for five client relationships as well as eight staff members. He oversaw and approved all custody and accounting activities for 26 mutual funds culminating in the submission of a NAV to NASDAQ. In that role, Mr. Hekman acted as a liaison between custody administration, accounting, and investment management personnel. Mr. Hekman graduated from Dordt College in 1998 with a BA in business administration. He earned an MBA with an emphasis in finance from the University of Kansas in 2003. Mr. Hekman is a member of the CFA Institute and the Kansas City CFA Society.Matthew A. Hekman Waddell & Reed Investment Management Company 17 1

Risk Factors: The value of the Fund's shares will change, and you could lose money on your investment. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. These and other risks are more fully described in the fund's prospectus. Not all funds or fund classes may be offered at all broker/ dealers.

Pricing: All prices and year-to-date returns are based on closing quotes unless noted, as supplied to the NASDAQ by 6:00 p.m. Eastern time.

Index Description: S&P 500 - An unmanaged index of common stocks. It is not possible to invest directly in an index.

Index Description: Barclays US Govt/Credit TR USD - The Barclays U.S. Government/Credit Index measures the performance of U.S. dollar-denominated United States Treasuries, government-related, and investment-grade U.S. corporate securities that have a remaining maturity of greater than or equal to one year. In addition, the securities have $250 million or more of outstanding face value and are fixed-rate and non-convertible securities. It is not possible to invest directly in an index.

Performance results for some funds may include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. The adviser and its affiliates have or may voluntarily waive a portion of their fees (including, but not limited to, distribution and service (12b-1) fees) and reimburse certain expenses. There is no guarantee that the fund will avoid a negative yield. Such undertaking may be amended or withdrawn at any time.

30-Day SEC Yield: is calculated based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.

12-Month Trailing Distribution Yield: at NAV refers to the 12-month historical cash flow paid over the past 12 months in dividends, divided by the past months ending NAV.

Morningstar Ratings: For each fund with at least a 3-year history, Morningstar calculates a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of all sales charges), placing emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund and rated separately.) A fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the share classes specified; other classes may have different performance characteristics.

Information is subject to change and is not intended to represent any past or future investment recommendations.

Quality: Our preference is to always use ratings obtained from Standard & Poor's. For securities not rated by Standard & Poor's, ratings are obtained from Moody's. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Please remember that an investment in a mutual fund involves risk. Investment return and principal value of a mutual fund investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

YTD Prices can be updated 3 to 4 hours after the Daily Pricing information which can result in mismatching data.

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