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 5/31/2016) $1.5 bil
Total Equity Holdings (as of 5/31/2016) 53
Total Holdings (as of 5/31/2016) 274
Portfolio Turnover Rate (as of 12/31/2015) 25%
Lipper Category Mixed-Asset Target Alloc Growth Funds
Morningstar Category Allocation--50% to 70% Equity
Benchmarks S&P 500 TR USD
Barclays US Govt/Credit TR USD
Daily Prices
as of 6/24/2016
Net Asset Value (NAV) $9.18
NAV Change ($) ($0.20)
NAV Change (%) -2.13%
Weekly NAV Change ($) ($0.08)
Weekly NAV Change (%) -0.86%
Public Offering Price (POP) $9.74
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 5/31/2016
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV -0.96% -4.50% 5.81% 7.03% 6.95% 9.23%
Fund with 5.75% sales charge -6.65% -10.02% 3.74% 5.78% 6.32% 9.08%
S&P 500 TR USD 3.57% 1.72% 11.06% 11.67% 7.41% N/A
Barclays US Govt/Credit TR USD 3.94% 3.11% 2.82% 3.56% 5.02% N/A
Lipper Mixed-Asset Target Alloc Growth Funds 2.27% -2.74% 5.47% 6.02% 5.06% N/A
Quarterly Rates of Return
(Returns for periods of less than 1-yr are not annualized)
Average Annual Total Returns
as of 3/31/2016
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV -2.03% -4.91% 6.38% 7.09% 6.81% 9.24%
Fund with 5.75% sales charge -7.66% -10.36% 4.31% 5.82% 6.18% 9.09%
S&P 500 TR USD 1.35% 1.78% 11.82% 11.58% 7.01% N/A
Barclays US Govt/Credit TR USD 3.47% 1.75% 2.42% 4.04% 4.93% N/A
Lipper Mixed-Asset Target Alloc Growth Funds 0.54% -3.09% 5.70% 6.02% 4.73% N/A
Expense Ratios
as of 10/30/2015
Net 1.15%
Gross 1.15%
12-Month Trailing Distribution Yield
as of 5/31/2016
NAV 1.08%
With sales charge 1.02%
Annualized 30-Day SEC Yield
as of 5/31/2016
Subsidized 0.97%
Unsubsidized 0.95%
Growth of a $10,000 Investment
through 5/31/2016
 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 5/31/2016
Category: Mixed-Asset Target Alloc Growth Funds
  Rank Percentile
1 Year 372 / 487 77
3 Year 199 / 456 44
5 Year 119 / 405 30
10 Year 20 / 308 7

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

Morningstar Ratings
as of 5/31/2016
Category: Allocation--50% to 70% Equity
Overall (out of 818 Allocation--50% to 70% Equity)
3 Year (out of 818 Allocation--50% to 70% Equity)
5 Year (out of 696 Allocation--50% to 70% Equity)
10 Year (out of 471 Allocation--50% to 70% Equity)

Ratings are based on risk-adjusted returns.

Holdings
Portfolio Composition
(as a % of net assets as of 5/31/2016)
Domestic Common Stock 39.96%
Corporate Bonds 31.80%
Cash and Cash Equivalents 15.20%
Foreign Common Stock 6.99%
Preferred Stock 5.17%
Senior Loans 0.67%
Government Bonds 0.15%
Other Financial Instruments 0.06%
Sector Allocation
(as a % of equity holdings as of 5/31/2016)
Health Care 24.4%
Information Technology 19.2%
Consumer Discretionary 14.0%
Financials 13.7%
Consumer Staples 10.5%
Energy 7.1%
Industrials 5.5%
Materials 4.6%
Telecommunication Services 1.1%
Equity Country Allocation
(as a % of equity holdings as of 5/31/2016)
United States 84.6%
Ireland 5.3%
Israel 4.8%
Singapore 3.3%
Belgium 2.0%
Fixed Income Country Allocation
(as a % of bond holdings as of 5/31/2016)
United States 78.0%
United Kingdom 6.1%
Netherlands 3.4%
Australia 3.3%
France 2.9%
Canada 2.6%
Japan 1.2%
Singapore 1.1%
Guernsey 0.5%
Sweden 0.4%
Hong Kong 0.3%
Mexico 0.2%
Top 10 Equity Holdings
(as a % of net assets as of 5/31/2016)
Carnival Corporation operates as a cruise and vacation company.Carnival Corp. 1.97%
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company.JPMorgan Chase & Co. 1.76%
Broadcom Corp., Class A 1.74%
Shire plc (Shire) is a specialty biopharmaceutical company that focuses on meeting the needs of the specialist physician.Shire Pharmaceuticals Group plc ADR 1.61%
Comcast Corporation operates as a media and technology company worldwide. It operates through cable communications, cable networks, broadcast television, filmed entertainment, and theme parks segments.Comcast Corp., Class A 1.51%
Johnson & Johnson is a holding company. The Company, along with its subsidiaries, is engaged in the research and development, manufacture and sale of a range of products in the healthcare field.Johnson & Johnson 1.46%
Teva Pharmaceutical Industries Ltd (Teva) is a global pharmaceutical and drug company. It develops, produces and markets generic drugs in all treatment categories. Teva Pharmaceutical Industries Ltd. ADR 1.45%
Allergan plc, Convertible Series A, 5.500%, 3/1/2018 1.45%
An American global supplier of paints, coatings, optical products, specialty materials, chemicals, glass and fiberglass.PPG Industries, Inc. 1.36%
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) 1.35%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 3/31/2016)
Quality
(as a % of bond holdings as of 5/31/2016)
NonRated 0.5 %
Government Bonds 0.5 %
AA 7.8 %
A 24.4 %
BBB 40.7 %
BB 15.5 %
B 3.0 %
CCC 7.6 %

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.

Maturity
(as a % of bond holdings as of 5/31/2016)
<1 Year 0.0 %
1-5 Years 68.5 %
5-10 Years 16.6 %
10-20 Years 12.5 %
>20 Years 0.5 %
Average Maturity 3.63 years
Effective Duration 2.96 years

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

Top 10 Industry Allocation
(as a % of equity holdings as of 5/31/2016)
Pharmaceuticals 15.6%
Packaged Foods & Meats 6.6%
Semiconductors 6.5%
Oil & Gas Exploration & Production 5.1%
Other Diversified Financial Services 4.0%
Hotels, Resorts & Cruise Lines 3.8%
Managed Health Care 3.7%
Cable & Satellite 2.9%
Diversified Chemicals 2.6%
Regional Banks 2.6%
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 18 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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