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Waddell & Reed Advisors Global Bond Fund

  • $3.73 NAV as of 7/20/2017
  • ($0.00) / 0.00% Daily NAV Change
  • 2.49% YTD (NAV)

Summary

Worldwide income potential

Diversified Income
Invests in bonds issued by both developed and emerging markets, with the flexibility to invest in sovereign and corporate debt.
“Reward-to-Risk Management”
Investment strategy based on credit research, duration management and diversification.
Managing Duration
In an effort to reduce interest rate sensitivity, the Fund often invests a large portion of its portfolio in bonds with maturities of 1 to 5 years.

Morningstar Style Box

Value
Large
LTD
Low
Source: Morningstar

Portfolio Management

Mark G. Beischel, CFA

  • Waddell & Reed Investment Management Company
  • 15 Years with Fund
  • 24 Years in Industry
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Mark Beischel is portfolio manager of Ivy, Ivy VIP and Waddell & Reed Advisors Global Bond Funds. He has been a portfolio manager of Ivy Global Bond since 2008, of Ivy VIP Global Bond since 2010 and of Waddell & Reed Advisors Global Bond since 2002. Since the Ivy Apollo Funds inception in 2015, he has held oversight of allocation levels and management of all allocation sleeves for Ivy Apollo Strategic Income Fund and co-oversight of allocation levels and management of all allocation sleeves for Ivy Apollo Multi-Asset Income Fund. Mr. Beischel joined Waddell & Reed in 1998 specializing in taxable investment-grade corporate credit analysis and emerging market credit analysis. He was appointed assistant vice president and named an assistant portfolio manager in 2000. He was appointed vice president in 2002 and senior vice president in 2006. Mr. Beischel was appointed Global Director of Fixed Income in 2011. Prior to joining Waddell & Reed, he was affiliated with United Capital Management in Denver, Colorado as a fixed income analyst/trader. Mr. Beischel graduated in 1991 with a BBA in Management from the University of Wisconsin-Eau Claire. He earned an MBA with an emphasis in Finance from the University of Denver in 1993. Mr. Beischel is a CFA charterholder. He is a member of the CFA Institute and the CFA Society of Kansas City.

Growth of a $10,000 Investment
through 6/30/2017

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.

Documents

Perspectives

Quarterly Fund Commentary

Daily Prices as of 7/20/2017

Net Asset Value (NAV) $3.73
Daily NAV Change ($) ($0.00) 0.00%
Weekly NAV Change ($) $0.01 0.27%
Public Offering Price (POP) $3.73

Fund Facts

Ticker Symbol WGBCX
CUSIP 930057559
Fund Code 334
Fund Type Fixed Income Funds
Fund Inception 7/1/1986
Class Inception 10/6/1999
Fiscal Year End September
Dividends Paid Daily, Paid Monthly
Fund Assets (as of 6/30/2017) $513.8 mil
Total Equity Holdings (as of 6/30/2017) 4
Total Holdings (as of 6/30/2017) 137
Portfolio Turnover Rate (as of 3/31/2017) 12%
Lipper Category Global Income Funds
Morningstar Category World Bond
Benchmark Bloomberg Barclays Multiverse TR USD

Performance

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, if it had, performance shown would be lower. For Class C shares, a 1% CDSC applies to the lesser of amount invested or redemption value of shares redeemed within twelve months after the purchase date.

Monthly Rates of Return

Average Annual Total Returns as of 6/30/2017
(Returns for periods of less than 1-yr are not annualized)
 
Fund with maximum 1.00% CDSC 0.86% 3.17% -0.74% 1.21% 2.81% 3.18%
Fund at NAV 1.86% 3.17% -0.74% 1.21% 2.81% 3.18%
Lipper Global Income Funds 4.19% 1.41% 0.56% 1.63% 3.88% 4.42%
Bloomberg Barclays Multiverse TR USD 4.58% -1.38% -0.16% 1.05% 3.85%

Quarterly Rates of Return

Average Annual Total Returns as of 6/30/2017
(Returns for periods of less than 1-yr are not annualized)
 
Fund with maximum 1.00% CDSC 0.86% 3.17% -0.74% 1.21% 2.81% 3.18%
Fund at NAV 1.86% 3.17% -0.74% 1.21% 2.81% 3.18%
Lipper Global Income Funds 4.19% 1.41% 0.56% 1.63% 3.88% 4.42%
Bloomberg Barclays Multiverse TR USD 4.58% -1.38% -0.16% 1.05% 3.85%

Calendar Year Return

  2012
Bloomberg Barclays Multiverse TR USD 4.84 -2.19 0.48 -3.29 2.84
Class C 5.90 0.84 -1.62 -4.09 5.59

Morningstar Ratings as of 6/30/2017 Morningstar Logo

Category: World Bond
Ratings are based on risk-adjusted returns
Overall out of 298
3 Year out of 298
5 Year out of 253
10 Year out of 126

Lipper Ranking through 6/30/2017 Lipper Logo

Category: Global Income Funds
 
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 53/206 26
3 Year 151/191 79
5 Year 107/166 65
10 Year 65/85 76

Expense Ratios as of 1/31/2017

Net 2.03%
Gross 2.06%

5-Year Standard Deviation as of 6/30/2017

Bloomberg Barclays Multiverse TR USD 4.60

5-Year MPT* Statistics as of 6/30/2017

*Modern Portfolio Theory
Alpha 0.69
Beta 0.43
R-Squared 27.11
Sharpe Ratio 0.28
Capture Ratio Upside: 48.37%
Downside: 36.17%

Distributions

Historical Prices Inception 10/6/1999

7/3/2017 $3.71 NO NO
7/5/2017 $3.70 NO NO
7/6/2017 $3.70 NO NO
7/7/2017 $3.70 NO NO
7/10/2017 $3.71 NO NO
7/11/2017 $3.71 NO NO
7/12/2017 $3.72 NO NO
7/13/2017 $3.72 NO NO
7/14/2017 $3.72 NO NO
7/17/2017 $3.72 NO NO
7/18/2017 $3.72 NO NO
7/19/2017 $3.73 NO NO
7/20/2017 $3.73 NO NO

Historical Distributions Inception 10/6/1999

6/15/2017 $0.003 Long: $0.000 Short: $0.000 $3.72 6/15/2017
5/11/2017 $0.004 Long: $0.000 Short: $0.000 $3.72 5/11/2017
4/13/2017 $0.003 Long: $0.000 Short: $0.000 $3.72 4/13/2017
3/16/2017 $0.003 Long: $0.000 Short: $0.000 $3.69 3/16/2017
2/9/2017 $0.004 Long: $0.000 Short: $0.000 $3.7 2/9/2017
1/12/2017 $0.001 Long: $0.000 Short: $0.000 $3.69 1/12/2017
12/8/2016 $0.0086 Long: $0.000 Short: $0.000 $3.65 12/8/2016
11/10/2016 $0.002 Long: $0.000 Short: $0.000 $3.65 11/10/2016
10/13/2016 $0.002 Long: $0.000 Short: $0.000 $3.68 10/13/2016
9/15/2016 $0.001 Long: $0.000 Short: $0.000 $3.67 9/15/2016
8/11/2016 $0.001 Long: $0.000 Short: $0.000 $3.67 8/11/2016
7/14/2016 $0.002 Long: $0.000 Short: $0.000 $3.66 7/14/2016
6/16/2016 $0.001 Long: $0.000 Short: $0.000 $3.6 6/16/2016
5/12/2016 $0.001 Long: $0.000 Short: $0.000 $3.59 5/12/2016
4/14/2016 $0.001 Long: $0.000 Short: $0.000 $3.57 4/14/2016
3/10/2016 $0.002 Long: $0.000 Short: $0.000 $3.5 3/10/2016
2/11/2016 $0.002 Long: $0.000 Short: $0.000 $3.42 2/11/2016
1/14/2016 $0.001 Long: $0.000 Short: $0.000 $3.45 1/14/2016
12/10/2015 $0.0136 Long: $0.000 Short: $0.000 $3.51 12/10/2015
11/12/2015 $0.004 Long: $0.000 Short: $0.000 $3.57 11/12/2015
10/15/2015 $0.005 Long: $0.000 Short: $0.000 $3.57 10/15/2015
9/10/2015 $0.005 Long: $0.000 Short: $0.000 $3.57 9/10/2015
7/16/2015 $0.006 Long: $0.000 Short: $0.000 $3.69 7/16/2015
6/11/2015 $0.007 Long: $0.000 Short: $0.000 $3.73 6/11/2015
5/14/2015 $0.006 Long: $0.000 Short: $0.000 $3.76 5/14/2015
4/16/2015 $0.006 Long: $0.000 Short: $0.000 $3.75 4/16/2015
3/12/2015 $0.008 Long: $0.000 Short: $0.000 $3.69 3/12/2015
2/12/2015 $0.006 Long: $0.000 Short: $0.000 $3.68 2/12/2015
1/15/2015 $0.001 Long: $0.000 Short: $0.000 $3.65 1/15/2015
12/11/2014 $0.0184 Long: $0.000 Short: $0.000 $3.72 12/11/2014
11/13/2014 $0.009 Long: $0.000 Short: $0.000 $3.86 11/13/2014
10/16/2014 $0.01 Long: $0.000 Short: $0.000 $3.85 10/16/2014
9/11/2014 $0.009 Long: $0.000 Short: $0.000 $3.93 9/11/2014
8/14/2014 $0.009 Long: $0.000 Short: $0.000 $3.94 8/14/2014
7/10/2014 $0.01 Long: $0.000 Short: $0.000 $3.97 7/10/2014
6/12/2014 $0.009 Long: $0.000 Short: $0.000 $3.96 6/12/2014
5/15/2014 $0.009 Long: $0.000 Short: $0.000 $3.94 5/15/2014
4/10/2014 $0.009 Long: $0.000 Short: $0.000 $3.91 4/10/2014
3/13/2014 $0.005 Long: $0.000 Short: $0.000 $3.86 3/13/2014
2/13/2014 $0.01 Long: $0.000 Short: $0.000 $3.86 2/13/2014
1/16/2014 $0.003 Long: $0.000 Short: $0.000 $3.88 1/16/2014
12/12/2013 $0.0275 Long: $0.000 Short: $0.000 $3.86 12/12/2013
11/14/2013 $0.01 Long: $0.000 Short: $0.000 $3.9 11/14/2013
10/10/2013 $0.009 Long: $0.000 Short: $0.000 $3.89 10/10/2013
9/12/2013 $0.01 Long: $0.000 Short: $0.000 $3.84 9/12/2013
8/15/2013 $0.009 Long: $0.000 Short: $0.000 $3.86 8/15/2013
7/11/2013 $0.009 Long: $0.000 Short: $0.000 $3.87 7/11/2013
6/13/2013 $0.01 Long: $0.000 Short: $0.000 $3.91 6/13/2013
5/16/2013 $0.009 Long: $0.000 Short: $0.000 $4 5/16/2013
4/11/2013 $0.009 Long: $0.000 Short: $0.000 $4 4/11/2013
3/14/2013 $0.009 Long: $0.000 Short: $0.000 $4 3/14/2013
2/14/2013 $0.009 Long: $0.000 Short: $0.000 $4 2/14/2013
1/10/2013 $0.002 Long: $0.000 Short: $0.000 $4 1/10/2013

*Special Dividend
The table includes the daily prices at NAV (net asset value) for the history of this fund's selected share class. NAV is the amount per share you would receive if you sold shares that day.

12-Month Trailing Dist. Yield as of 6/30/2017

NAV 0.93%
With Sales Charge 0.93%

Annualized 30-Day SEC Yield as of 6/30/2017

Subsidized - NAV 1.47%
Unsubsidized - NAV 1.44%

Portfolio

Top 10 Holdings as a % of net assets 6/30/2017

U.S. Treasury Notes, 1.8%, 5/15/2022 3.72%
U.S. Treasury Notes, 2.6%, 11/15/2020 3.41%
U.S. Treasury Notes, 2.1%, 8/15/2021 2.51%
State Bank of India, 3.3%, 4/18/2018 2.32%
U.S. Treasury Bonds, 2.3%, 11/15/2025 2.32%
U.S. Treasury Notes, 1.5%, 4/15/2020 2.14%
Inversiones CMPC S.A. (GTD by Empresas CMPC S.A.), 4.8%, 1/19/2018 2.05%
Republic of Argentina, 6.9%, 4/22/2021 2.01%
Olam International Ltd., 7.5%, 8/12/2020 1.94%
U.S. Treasury Notes, 0.8%, 9/30/2018 1.93%

Total Portfolio Holdings

Updated quarterly, upon availability.

Maturity
as a % of fixed income assets as of 6/30/2017

<1 Year 13.1%
1-5 Years 67.2%
5-10 Years 17.7%
10-20 Years 0.0%
>20 Years 1.9%
Average Maturity 4.15 years
Effective Duration 2.90 years

Fixed Income Country Allocation
as a % of bond holdings as of 6/30/2017

United States 41.3%
United Kingdom 6.4%
Argentina 6.0%
Mexico 6.0%
Netherlands 5.3%
Brazil 4.4%
Columbia 4.3%
Chile 4.2%
Luxembourg 3.7%
Singapore 2.8%
India 1.4%
Indonesia 1.3%
Russia 1.3%
Ireland 1.3%
Qatar 1.1%
South Africa 1.1%
Spain 1.0%
United Arab Emirates 0.9%
Peru 0.9%
Canada 0.9%
Cayman Islands 0.8%
China 0.6%
France 0.5%
Austria 0.5%
Turkey 0.4%
Hong Kong 0.4%
British Virgin Islands 0.4%
Saudi Arabia 0.3%
Norway 0.3%
Jamaica 0.2%

Quality
as a % of fixed income assets as of 6/30/2017

Quality: 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.
Government Bonds 24.20%
NonRated 5.20%
AA 1.40%
A 4.10%
BBB 23.40%
BB 23.10%
B 16.50%
CCC 2.10%

Portfolio Composition
as a % of net assets as of 6/30/2017

Corporate Bonds 56.16%
Government Bonds 22.34%
Other Government Securities 12.02%
Foreign Common Stock 4.25%
Senior Loans 1.88%
Cash and Cash Equivalents 1.73%
Domestic Common Stock 1.62%

Total Portfolio Holdings

Updated quarterly, upon availability.

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.

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. International investing involves additional risks, including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. 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 below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. Loans (including loan assignments, loan participations and other loan instruments) carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loans may be unsecured or not fully collateralized may be subject to restrictions on resale and sometimes trade infrequently on the secondary market. 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.

Index Description: The Bloomberg Barclays Multiverse TR USD - The Barclays Multiverse Index is an unmanaged index comprised of securities that represent the global bond market. 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.

Fee Waiver and/or Expense Reimbursement: Through January 31, 2018, Waddell & Reed Investment Management Company (WRIMCO), the Fund’s investment manager, Waddell & Reed, Inc. (Waddell & Reed), the Fund’s distributor, and / or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Fund’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and / or shareholder servicing fees to cap the total annual ordinary fund operating expenses as follows: Class A shares at 1.15%, Class B shares at 2.50%, Class C shares at 2.03%, and Class Y at 0.83%. Prior to that date, the expense limitation may not be terminated by WRIMCO, Waddell & Reed, WISC or the Board of Trustees.

Performance data represents periods prior to changes in the fund's name, strategies and policies (effective 9/18/00) during which the fund sought to achieve its goals by investing primarily in junk bonds, with minimal investments in foreign securities. Accordingly, the performance information for periods prior to that date reflects the operation of the Fund under its former investment strategies and related policies.

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

Style Analysis: The Morningstar Style Box reveals a fund's investment style. For equity funds the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend, or growth). For fixed-income funds, the vertical axis shows the credit quality of the bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by the following Nationally Recognized Statistical Rating Organizations (NRSROs): Moody's, Standard & Poor's, Fitch, and Egan-Jones. If two NRSROs have rated a security, fund companies are to report the lowest rating; if three or more NRSROs have rated the same security differently, fund companies are to report the rating that is in the middle. For example, if NRSRO X rates a security AA-, NRSRO Y rates the same security an A and NRSRO Z rates it a BBB+, the fund company should use the credit rating of 'A' in its reporting to Morningstar. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of "low", "medium", or "high" based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-"; medium are those less than "AA-", but greater or equal to "BBB-"; and high are those with a weighted-average credit quality of "AA-" or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar's analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years.

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.

Alpha, Beta, R-Squared, Standard Deviation, Sharpe Ratio and Capture Ratio are 5 year statistics. Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of the fund's return to fluctuations in the market index. R-squared indicates how much of a fund's fluctuations were attributable to movements in the fund's benchmark. Standard deviation is a measure of how volatile a fund's returns are. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance, and does not include the effects of sales charges. The top 10% of products in each product 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. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Quality: 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.

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

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

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