Waddell & Reed Financial
is in the black once again. On Tuesday the Overland Park, Kansas-based Ivy Funds
first quarter net income of $15.5 million, up from a net loss of $700,000 in Q4 2008 (see MFWire, 1/27/2009
Those results included "a non-cash charge of $3.7 million for other-than-temporary impairment of certain of the company's investments in affiliated mutual funds."
Waddell's AUM actually increased a bit in the quarter, from $47.484 billion on December 31, 2008 to $47.576 billion on March 31, 2009, thanks to positive inflows via the firm's wholesale channel (of $954 million) and institutional channel ($118 million), and in spite of $82 million in net outflows in the advisor channel.
"Out powerful distribution network capitalized upon our strong relative results, delivering inflows despite a very challenging environment," stated CEO Hank Herrmann
. "We believe our annualized organic growth rate of over 8% will emerge among the best in class in our peer group of publicly traded asset managers."
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