Waddell & Reed

2014 Lipper Fund Awards

Two Ivy Funds, Three Waddell & Reed Advisors Funds Receive 2014 Lipper Fund Awards

Ivy Funds and Waddell & Reed Advisors Funds were awarded Lipper Fund Awards for strong risk-adjusted performance from national fund research firm Thomson Reuters/Lipper. At an event in New York, the following five funds were selected for recognition among peer funds for their individual performance over indicated periods ending Dec. 31, 2013:

“Lipper Fund Awards recognize fund companies and fund managers that have consistently delivered superior risk-adjusted performance relative to their peers,” said Jeff Tjornehoj, Head of Americas Research at Lipper. “Winning an award brings deserved industry recognition, underscoring the success of a firm’s investment management capabilities.”

The awards were presented March 20, 2014, at the annual Lipper Fund Awards ceremony in New York. The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, which recognize top performance worldwide by mutual funds, fund management firms, sell-side firms, research analysts and investor relations teams.

The Lipper Fund Awards honor individual funds that have delivered stronger and more consistent risk-adjusted performance than their peers over a given measurement period. Lipper’s proprietary mutual fund rating methodology is used to determine the winners. To be considered for a fund award in the U.S. funds must have at least 36 months of performance history and must be classified in a peer group with at least 10 distinct portfolios. The fund with the highest Lipper Leader rating for Consistent Return value in each eligible classification determines the classification winner over three, five, or 10 years. Other share classes may have different performance and expense characteristics. For a detailed explanation of the process, please review the Lipper Fund Awards methodology document (U.S.) at excellence.thomsonreuters.com/award/lipper.

Recently, Ivy Funds and Waddell & Reed Advisors Funds also both were recognized in the latest Barron’s ranking of the “Best Mutual Fund Families.” Ivy Funds ranked No. 1 over the last 10 years, out of 48 firms, and No. 5 over the last five years, out of 55 firms. It continues a string of strong performance for Ivy, as the fund family has appeared in the top five of the 10-year ranking since 2010 and in the top five of the 5-year ranking since 2008. Ivy Funds narrowly missed the top 10 over one year, ranking No. 11 out of 64 firms. Making the top 10 across all three time periods, Waddell & Reed Advisors Funds ranked No. 5 out of 64 fund families over the last 12 months. The fund family ranked No. 9 over the five-year period, out of 55 firms, and has been in the top 10 of that period for five of the last six years. It ranked No. 4 over the 10-year period out of 48 firms.

Barron’s rankings (published Feb. 8, 2014) are based on asset-weighted returns in five categories: domestic equity, world equity (including international and global portfolios), mixed asset (stocks and bonds), taxable bonds and tax exempt bonds. Rankings also take into account an individual fund’s performance within its Lipper peer group. Sales charges are not included in the calculation of returns, and the ranking period included time periods during which some funds’ returns were affected by expense reduction arrangements.

The Waddell & Reed Advisors Funds are offered through Waddell & Reed advisors, the company’s network of personal financial planners with offices around the country. Ivy Funds are offered through the company’s wholesale channel, which includes national and regional broker/dealers, registered investment advisors and retirement platforms.

The two fund families, both affiliates of Waddell & Reed Financial, Inc. (NYSE:WDR), utilize a rigorous research process that emphasizes longer-term performance with a focus on risk management, according to company executives, with the benefits realized over longer periods.

Through its subsidiaries, Waddell & Reed Financial, Inc. provides investment management and financial planning services to clients throughout the U.S. The firm had approximately $127 billion in total assets under management at Dec. 31, 2013. Waddell & Reed Investment Management Company serves as investment advisor to the Waddell & Reed Advisors Group of Mutual Funds, Ivy Funds Variable Insurance Portfolios and InvestEd Portfolios, while Ivy Investment Management Company serves as investment advisor to the Ivy Funds. Waddell & Reed, Inc. serves as principal underwriter and distributor to the Waddell & Reed Advisors Group of Mutual Funds, Ivy Funds Variable Insurance Portfolios, and InvestEd Portfolios, while Ivy Funds Distributor, Inc. serves as principal underwriter and distributor to the Ivy Funds.


Class Y and Class I shares are only available to certain investors.

International investing involves additional risks, including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. Fixed income securities are subject to interest rate risk and, as such, the net asset value of the Fund may fall as interest rates rise. Investing in high-income securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds.

In addition, with regard to the Waddell & Reed Advisors Asset Strategy Fund, it may allocate from 0 to 100 percent of its assets between stocks, bonds and short-term instruments of issuers around the globe, as well as investments in precious metals and investments with exposure to various foreign securities. With regard to Ivy Municipal High Income Fund, it may include a significant portion of its investments that will pay interest that is taxable under the Alternative Minimum Tax (AMT). With regard to the Waddell & Reed Advisors Science and Technology Fund, investing in companies involved in one specified sector may be more risky and volatile than an investment with greater diversification.

Lipper Analytical Services, Inc. is an independent mutual fund research and rating service. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Lipper awards are not intended to predict future results.

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