Select a Fund Family and Share Class
Go

Waddell & Reed Advisors Tax-Managed Equity Fund

  • $19.52 NAV as of 7/21/2017
  • ($-0.01) / -0.05% Daily NAV Change
  • 17.87% YTD (NAV)

Summary

Seeking growth with minimizing potential taxable gains

Process
Seeks to provide growth of capital while minimizing taxable gains and income to shareholders.
Approach
Invests in growth-oriented companies believed to have above-average levels of profitability and the ability to sustain growth over the long term. Considers the following factors: brand equity, proprietary technology, economics of scale, level of intra- and inter-industry competition, operating margins, and return on capital, threat of substitute products and the interaction and bargaining power between a company, its customers, suppliers and competitors.
Potential benefits
Manager attempts to achieve high after-tax returns by balancing investment and tax considerations.

Morningstar Style Box

Growth
Large
Source: Morningstar

Portfolio Management

Bradley M. Klapmeyer, CFA

  • Waddell & Reed Investment Management Company
  • 2 Years with Fund
  • 17 Years in Industry
Toggle Section

Brad Klapmeyer is co-portfolio manager of the large cap growth product suite of mutual funds and institutional accounts. He was named co-portfolio manager of the product suite in 2016. He has been portfolio manager of Ivy and Waddell & Reed Advisors Tax- Managed Equity Funds since 2014. He is a portfolio manager of Ivy Focused Growth NextShares, an exchange-traded managed fund, since the fund's inception in 2016. Mr. Klapmeyer joined Waddell & Reed in 2007 as an equity investment analyst. He was appointed assistant vice president in 2010. He was assistant portfolio manager on the Large Cap Growth team from 2011 to 2016. He was appointed vice president in 2014. Prior to joining Waddell & Reed, Mr. Klapmeyer was an associate analyst covering airlines for Prudential Equity Group, LLC from 2006 through 2007. He was an equity analyst for Commerce Bank from 2000 to 2006, where his research responsibilities were focused on electronic and health technologies. Mr. Klapmeyer graduated from Truman State University in 1999 with a BS in Finance and a minor in Economics. Mr. Klapmeyer 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 7/21/2017

Net Asset Value (NAV) $19.52
Daily NAV Change ($) ($-0.01) -0.05%
Weekly NAV Change ($) $0.19 0.98%
Public Offering Price (POP) $19.52

Fund Facts

Ticker Symbol WATMX
CUSIP 93005R209
Fund Code 743
Fund Type Domestic Equity
Fund Inception 3/31/2000
Class Inception 6/10/2016
Fiscal Year End June
Dividends Paid December
Fund Assets (as of 6/30/2017) $395.3 mil
Total Equity Holdings (as of 6/30/2017) 45
Total Holdings (as of 6/30/2017) 47
Portfolio Turnover Rate (as of 12/31/2016) 23%
Lipper Category Large-Cap Growth Funds
Morningstar Category Large Growth
Benchmark Russell 1000 Growth 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 6/30/2017
(Returns for periods of less than 1-yr are not annualized)
 
Fund at NAV 13.59% 15.62% 13.21%
Russell 1000 Growth TR USD 14.00% 20.42% 11.11% 15.30% 8.91% 17.79%
Lipper Large-Cap Growth Funds 15.36% 20.39% 9.62% 14.14% 7.87% 18.20%

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 at NAV 13.59% 15.62% 13.21%
Russell 1000 Growth TR USD 14.00% 20.42% 11.11% 15.30% 8.91% 17.79%
Lipper Large-Cap Growth Funds 15.36% 20.39% 9.62% 14.14% 7.87% 18.20%

Calendar Year Return

  2012
Russell 1000 Growth TR USD 15.26 33.48 13.05 5.67 7.08

Morningstar Ratings as of 6/30/2017 Morningstar Logo

Category: Large Growth
Ratings are based on risk-adjusted returns
Overall out of 1277
3 Year out of 1277
5 Year out of 1152
10 Year out of 803

Lipper Ranking through 6/30/2017 Lipper Logo

Category: Large-Cap Growth Funds
 
Rankings are based on average annual total returns, but do not consider sales charges.
1 Year 603/665 91
3 Year
5 Year
10 Year

Expense Ratios as of 10/31/2016

Net 0.74%
Gross 0.74%

5-Year Standard Deviation as of

Russell 1000 Growth TR USD 10.08

Distributions

Historical Prices Inception 6/10/2016

7/3/2017 $18.74 NO NO
7/5/2017 $18.90 NO NO
7/6/2017 $18.75 NO NO
7/7/2017 $18.93 NO NO
7/10/2017 $18.97 NO NO
7/11/2017 $18.99 NO NO
7/12/2017 $19.19 NO NO
7/13/2017 $19.22 NO NO
7/14/2017 $19.33 NO NO
7/17/2017 $19.34 NO NO
7/18/2017 $19.40 NO NO
7/19/2017 $19.52 NO NO
7/20/2017 $19.53 NO NO
7/21/2017 $19.52 NO NO

Historical Distributions Inception 6/10/2016

12/8/2016 $0 Long: $0.423 Short: $0.000 $16.74 12/8/2016

*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.

Portfolio

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

Microsoft Corp. Microsoft Corporation is a multinational computer technology corporation that develops, manufactures, licenses and supports a wide range of software products for computing devices. 5.70%
Amazon.com, Inc. Amazon.com, Inc. operates as an online retailer in North America and internationally. 5.26%
salesforce.com, Inc. Global customer relationship management company focused on sales, marketing and analytics. 4.47%
Alphabet, Inc., Class A Alphabet Inc through its subsidiary Google Inc is engaged in improving the ways people connect with information & products including Search, Android, YouTube, Apps, Maps & Ads. It also produces internet-connected home devices & provides internet services. 4.38%
Facebook, Inc., Class A Facebook, Inc. operates as a social networking company worldwide. It builds various tools that enable users to connect, share, discover, and communicate with each other on mobile devices and computers. 4.18%
Apple, Inc. Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions worldwide. 4.06%
Adobe Systems, Inc. Adobe Systems Incorporated operates as a diversified software company worldwide. It operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. 3.67%
Visa, Inc., Class A Visa Inc. operates retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. 3.31%
priceline.com, Inc. The Priceline Group is a provider of online travel and related services, provided to consumers and local partners in over 200 countries through six primary brands: Booking.com, priceline.com, KAYAK, agoda.com, rentalcars.com, and OpenTable. 3.17%
CME Group, Inc. CME Group Inc., a U.S. company, is the world's leading and most diverse derivatives marketplace. It owns and operates large derivatives and futures exchanges in Chicago and New York, as well as online trading platforms.  2.94%

Total Portfolio Holdings

Updated quarterly, upon availability.

Market Capitalization
as a % of equity assets as of 6/30/2017

Large 95.0%
Medium 5.0%
Small 0.0%
Median Market Cap (as of 6/30/2017) $63.3 bil

Top 10 Industry Allocation
as a % of Equity Holdings as of 6/30/2017

Internet Software & Services 9.4%
Internet & Direct Marketing Retail 8.6%
Application Software 8.4%
Data Processing & Outsourced Services 8.1%
Biotechnology 7.1%
Systems Software 5.8%
Health Care Equipment 5.5%
Technology Hardware, Storage & Peripherals 4.2%
Pharmaceuticals 3.5%
Oil & Gas Equipment & Services 3.2%

Sector Allocation
as a % of equity assets as of 6/30/2017

Information Technology 38.90%
Health Care 16.06%
Consumer Discretionary 14.68%
Industrials 14.32%
Consumer Staples 7.56%
Financials 3.77%
Energy 3.15%
Real Estate 1.56%

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

Domestic Common Stock 96.53%
Cash and Cash Equivalents 2.45%
Foreign Common Stock 1.02%

Equity Country Allocation
as a % of equity assets as of 6/30/2017

United States 99.0%
Ireland 1.1%

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. Tax-management strategies may alter investment decisions and affect portfolio holdings, when compared to those of non tax-managed mutual funds. Market conditions may limit the Fund’s ability to realize tax losses or to generate dividend income that is taxed at favorable Federal income tax rates. In addition, the Fund’s tax-managed strategy may cause the Fund to hold a security in order to achieve more favorable tax-treatment or to sell a security in order to realize tax losses, which could result in losses that exceed any benefits of the tax-managed strategy. The Fund’s ability to utilize various tax-management techniques may be curtailed or eliminated in the future by tax legislation or regulations. While the fund seeks to minimize tax distributions to shareholders, it may realize capital gains and earn some dividends. Not all funds or fund classes may be offered at all broker/dealers. These and other risks are more fully described in the Fund’s prospectus.

After-tax returns shown are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns on distributions and sale of Fund shares assume a complete sale of Fund shares at the end of the measurement period, resulting in capital gains taxes or tax benefits when capital losses occur. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.

Index Description: The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. 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.

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.

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.

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.

Market Data powered by Wikinvest. Data is provided as-is, delayed, and subject to Terms