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WRA Government Securities Fund

  • $5.41 NAV as of 12/7/2016
  • ($0.01) / 0.19% Daily NAV Change
  • 0.96% YTD (NAV)

Summary

Overview

The Fund invests in a diversified portfolio of U.S. government securities, including securities issued by the Treasury and government agencies and mortgage-backed securities also issued by government agencies. Because the Fund owns different types of government fixed-income instruments, a variety of factors can affect its investment performance, such as an increase in interest rates, adverse bond and stock market conditions, and prepayment of higher-yielding bonds and mortgage-backed securities.

Morningstar Style Box

MOD
Low
Source: Morningstar

Portfolio Management

Rick Perry, CFA

  • Waddell & Reed Investment Management Company
  • 1 Year with Fund
  • 23 Years in Industry
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Mr. Perry graduated in 1989 with a BA in accounting and business management from Central College. In 1992, he earned an MBA with a concentration in investments from the University of Iowa. Prior to joining the firm, he was a portfolio manager with Aegon USA Investment Management, where he served as the head of investment grade credit since 2006. He joined Aegon in 2001 and was named director of credit research in 2002. Prior to that, he was high-yield portfolio manager with ING Investment Management. He started his investment management career at Equitable Investment Services in 1993, where he held various positions including high-yield portfolio manager. Mr. Perry also has a CPA designation and worked for two years at McGladrey & Pullen CPA's after receiving his master's degree.

Growth of a $10,000 Investment
through 11/30/2016

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 12/7/2016

Net Asset Value (NAV) $5.41
Daily NAV Change ($) ($0.01) 0.19%
Weekly NAV Change ($) $0.01 0.19%
Public Offering Price (POP) $5.41

Fund Facts

Ticker Symbol WGVYX
CUSIP 930055405
Fund Code 754
Fund Type Fixed Income Funds
Fund Inception 4/10/1984
Class Inception 9/27/1995
Fiscal Year End September
Dividends Paid Daily, Paid Monthly
Fund Assets (as of 11/30/2016) $265.7 mil
Total Equity Holdings
Total Holdings (as of 11/30/2016) 87
Portfolio Turnover Rate (as of 9/30/2016) 43%
Lipper Category General U.S. Government Fds
Morningstar Category Intermediate Government
Benchmark Bloomberg Barclays US Govt/Mortgage 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.

Class Y shares are not subject to sales charges.

Monthly Rates of Return

Average Annual Total Returns as of 11/30/2016
(Returns for periods of less than 1-yr are not annualized)
  YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV 0.74% 0.53% 1.20% 0.62% 2.93% 4.43%
Bloomberg Barclays US Govt/Mortgage TR USD 1.37% 1.26% 2.38% 1.75% 4.00%

Quarterly Rates of Return

Average Annual Total Returns as of 9/30/2016
(Returns for periods of less than 1-yr are not annualized)
  YTD 1YR 3YR 5YR 10YR LIFE
Fund at NAV 4.20% 3.33% 2.40% 1.22% 3.44% 4.63%
Bloomberg Barclays US Govt/Mortgage TR USD 4.43% 3.84% 3.44% 2.37% 4.48%
Lipper General U.S. Government Fds 4.58% 3.72% 3.13% 1.85% 3.80%

Calendar Year Return

  2011 2012 2013 2014 2015
Class Y 7.49 1.98 -4.21 3.52 0.31
Bloomberg Barclays US Govt/Mortgage TR USD 7.74 2.27 -2.10 5.41 1.13

Morningstar Ratings as of 11/30/2016 Morningstar Logo

Category: Intermediate Government
Ratings are based on risk-adjusted returns
Overall out of 259
3 Year out of 259
5 Year out of 245
10 Year out of 180

Lipper Ranking through 11/30/2016 Lipper Logo

Category: General U.S. Government Fds
  Rank Percentile
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 52/102 51
3 Year 69/98 70
5 Year 71/93 76
10 Year 47/78 60

Expense Ratios as of 1/31/2016

Net 0.74%
Gross 0.74%

5-Year Standard Deviation as of 9/30/2016

Bloomberg Barclays US Govt/Mortgage TR USD 2.39

5-Year MPT* Statistics as of 9/30/2016

*Modern Portfolio Theory
Alpha -1.36
Beta 1.10
R-Squared 91.11
Sharpe Ratio 0.41
Capture Ratio Upside: 92.90%
Downside: 138.34%

Distributions

Historical Prices Inception 9/27/1995

Date Price Dividend Reinvest Date Capital Gain Reinvest Date
12/1/2016 $5.39 NO NO
12/2/2016 $5.40 NO NO
12/5/2016 $5.40 NO NO
12/6/2016 $5.40 NO NO
12/7/2016 $5.41 NO NO

Historical Distributions Inception 9/27/1995

Ex-date Income Capital Gains Reinvest Gains Payment Date
11/25/2016 $0.0072 Long: $0.000 Short: $0.000 $5.41 11/25/2016
10/27/2016 $0.007 Long: $0.000 Short: $0.000 $5.54 10/27/2016
9/27/2016 $0.0072 Long: $0.000 Short: $0.000 $5.61 9/27/2016
8/26/2016 $0.0076 Long: $0.000 Short: $0.000 $5.59 8/26/2016
7/27/2016 $0.0073 Long: $0.000 Short: $0.000 $5.62 7/27/2016
6/27/2016 $0.0072 Long: $0.000 Short: $0.000 $5.64 6/27/2016
5/27/2016 $0.0083 Long: $0.000 Short: $0.000 $5.53 5/27/2016
4/27/2016 $0.008 Long: $0.000 Short: $0.000 $5.53 4/27/2016
3/24/2016 $0.007 Long: $0.000 Short: $0.000 $5.52 3/24/2016
2/26/2016 $0.0084 Long: $0.000 Short: $0.000 $5.55 2/26/2016
1/27/2016 $0.0061 Long: $0.000 Short: $0.000 $5.5 1/27/2016
12/31/2015 $0.0089 Long: $0.000 Short: $0.000 $5.44 12/31/2015
11/27/2015 $0.0087 Long: $0.000 Short: $0.000 $5.46 11/27/2015
10/27/2015 $0.0078 Long: $0.000 Short: $0.000 $5.52 10/27/2015
9/25/2015 $0.0078 Long: $0.000 Short: $0.000 $5.49 9/25/2015
8/27/2015 $0.0078 Long: $0.000 Short: $0.000 $5.49 8/27/2015
7/27/2015 $0.0086 Long: $0.000 Short: $0.000 $5.48 7/27/2015
6/26/2015 $0.0109 Long: $0.000 Short: $0.000 $5.44 6/26/2015
5/27/2015 $0.0073 Long: $0.000 Short: $0.000 $5.51 5/27/2015
4/27/2015 $0.0071 Long: $0.000 Short: $0.000 $5.56 4/27/2015
3/27/2015 $0.0069 Long: $0.000 Short: $0.000 $5.56 3/27/2015
2/27/2015 $0.0088 Long: $0.000 Short: $0.000 $5.54 2/27/2015
1/27/2015 $0.0073 Long: $0.000 Short: $0.000 $5.58 1/27/2015
12/31/2014 $0.0095 Long: $0.000 Short: $0.000 $5.52 12/31/2014
11/26/2014 $0.0087 Long: $0.000 Short: $0.000 $5.54 11/26/2014
10/27/2014 $0.0086 Long: $0.000 Short: $0.000 $5.54 10/27/2014
9/26/2014 $0.0103 Long: $0.000 Short: $0.000 $5.49 9/26/2014
8/27/2014 $0.0095 Long: $0.000 Short: $0.000 $5.52 8/27/2014
7/25/2014 $0.0086 Long: $0.000 Short: $0.000 $5.52 7/25/2014
6/27/2014 $0.0103 Long: $0.000 Short: $0.000 $5.52 6/27/2014
5/27/2014 $0.0092 Long: $0.000 Short: $0.000 $5.53 5/27/2014
4/25/2014 $0.0098 Long: $0.000 Short: $0.000 $5.49 4/25/2014
3/27/2014 $0.0089 Long: $0.000 Short: $0.000 $5.47 3/27/2014
2/27/2014 $0.0096 Long: $0.000 Short: $0.000 $5.51 2/27/2014
1/27/2014 $0.0073 Long: $0.000 Short: $0.000 $5.48 1/27/2014
12/31/2013 $0.0093 Long: $0.000 Short: $0.000 $5.44 12/31/2013
11/27/2013 $0.0097 Long: $0.000 Short: $0.000 $5.5 11/27/2013
10/25/2013 $0.0085 Long: $0.000 Short: $0.000 $5.53 10/25/2013
9/27/2013 $0.0103 Long: $0.000 Short: $0.000 $5.51 9/27/2013
8/27/2013 $0.0084 Long: $0.000 Short: $0.000 $5.48 8/27/2013
7/26/2013 $0.0086 Long: $0.000 Short: $0.000 $5.53 7/26/2013
6/27/2013 $0.0094 Long: $0.000 Short: $0.000 $5.54 6/27/2013
5/24/2013 $0.0089 Long: $0.000 Short: $0.000 $5.72 5/24/2013
4/26/2013 $0.0098 Long: $0.000 Short: $0.000 $5.8 4/26/2013
3/27/2013 $0.0084 Long: $0.000 Short: $0.000 $5.77 3/27/2013
2/27/2013 $0.0099 Long: $0.000 Short: $0.000 $5.76 2/27/2013
1/25/2013 $0.0076 Long: $0.000 Short: $0.000 $5.75 1/25/2013
12/31/2012 $0.0105 Long: $0.000 Short: $0.000 $5.79 12/31/2012
12/13/2012 $0 Long: $0.028 Short: $0.000 $5.8 12/13/2012
11/27/2012 $0.0095 Long: $0.000 Short: $0.000 $5.85 11/27/2012
10/26/2012 $0.01 Long: $0.000 Short: $0.000 $5.82 10/26/2012
9/27/2012 $0.0108 Long: $0.000 Short: $0.000 $5.85 9/27/2012
8/27/2012 $0.0103 Long: $0.000 Short: $0.000 $5.85 8/27/2012
7/27/2012 $0.0106 Long: $0.000 Short: $0.000 $5.87 7/27/2012
6/27/2012 $0.01 Long: $0.000 Short: $0.000 $5.85 6/27/2012
5/25/2012 $0.01 Long: $0.000 Short: $0.000 $5.84 5/25/2012
4/27/2012 $0.0118 Long: $0.000 Short: $0.000 $5.81 4/27/2012
3/27/2012 $0.0102 Long: $0.000 Short: $0.000 $5.77 3/27/2012
2/27/2012 $0.0115 Long: $0.000 Short: $0.000 $5.81 2/27/2012
1/27/2012 $0.0106 Long: $0.000 Short: $0.000 $5.82 1/27/2012

*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 11/30/2016

NAV 1.67%
With Sales Charge 1.67%

Annualized 30-Day SEC Yield as of 11/30/2016

Subsidized - NAV 1.46%
Unsubsidized - NAV 1.42%

Portfolio

Top 10 Holdings as a % of net assets 11/30/2016

U.S. Treasury Notes, 3.6%, 8/15/2019 United States Treasury Notes, 3.63%, 8/15/2019 3.59%
U.S. Treasury Bonds, 9.0%, 11/15/2018 United States Treasury Bonds, 9.00%, 11/15/2018 3.47%
U.S. Treasury Notes, 1.6%, 2/15/2026 3.17%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates, 2.8%, 11/1/2018 3.02%
U.S. Treasury Notes, 2.3%, 11/15/2024 2.95%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates, 4.4%, 6/1/2021 2.83%
Federal Home Loan Mortgage Corp. Agency REMIC/CMO, 2.8%, 6/25/2022 2.76%
U.S. Department of Transportation, 6.0%, 12/7/2021 2.57%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates, 2.6%, 5/1/2019 2.54%
U.S. Treasury Notes, 2.0%, 8/15/2025 2.19%

Maturity
as a % of fixed income assets as of 10/31/2016

<1 Year 9.7%
1-5 Years 47.2%
5-10 Years 32.2%
10-20 Years 4.8%
>20 Years 6.0%
Average Maturity 6.16 years
Effective Duration 5.12 years

Fixed Income Country Allocation
as a % of bond holdings as of 11/30/2016

United States 100.0%

Quality
as a % of fixed income assets as of 11/30/2016

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 100.00%

Portfolio Composition
as a % of net assets as of 11/30/2016

Government Bonds 90.12%
Cash and Cash Equivalents 9.88%

Documents

Select a document below to view or download.

Documents

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. 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. 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.

Stylebox: The Morningstar Fixed Income Style Box reveals a fund’s investment style. 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 a Nationally Recognized Statistical Rating Organization (NRSRO). 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. Credit quality breakdowns are shown for corporate-bond holdings and depict the quality of bonds in the underlying portfolio. The report shows the percentage of fixed-income securities that fall within each credit quality rating as assigned by an NRSRO. Bonds not rated by an NRSRO are included in the not rated (NR) category. 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 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 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.

Index Description: The Barclays US Govt/Mortgage TR USD - The Barclays U.S. Government/Mortgage-Backed Securities Index measures the performance of U.S. government bonds and mortgage-related 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.

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 1.00%, Class B shares at 2.13%, Class C shares at 1.88%, and Class Y at 0.72%. Prior to that date, the expense limitation may not be terminated by WRIMCO, Waddell & Reed, WISC or the Board of Trustees.

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.

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).

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.

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.

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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