Waddell & Reed
, which sponsors the Ivy Funds and Waddell & Reed Advisor Funds, earned $33.4 million, or 39 cents per share, in the third quarter, practically unchanged from $33.3 million in the year-ago period. The latest quarter's results include a charge of $543,000 to general and administrative costs for severance expenses and $2.2 million in tax benefits in connection with the sale of its Austin, Calvert & Flavin subsidiary.
Not counting the charge and the tax benefits, net income would have been $31.8 million or
37 cents per share.
Overland Park, Kansas-based Waddell & Reed recorded gross sales of $804 million in the advisor channel, up 3 percent
compared to the second quarter and down eight percent compared to last year.
In the wholesale channel, gross sales totaled $4.1 billion, virtually the same compared to the
second quarter and up 9 percent from the year-ago period. Waddell executives said
that while the Asset Strategy
and Global Natural Resources
funds account for three-quarters
of total sales, "meaningful daily flows continue" in five other funds.
In the institutional channel, Waddell saw gross sales of $277 million, down 47 percent
from the second quarter and down 51 percent compared to last year.
Waddell ended the third quarter with total AUM of $64.48 billion, up
from $55.6 billion at the close of the second quarter and $59.78 billion
at the end of the third quarter last year.
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