When it rains, it pours at Waddell & Reed.

The advisor of the Ivy Funds, fired last week William Nelson, PM of the $12 billion Ivy High Income Fund as well as the Waddell & Reed Advisors High Income Fund, Ivy Variable Insurance Portfolio High Income, and the closed-end Ivy High Income Opportunities Fund, reports Morningstar.

Waddell's statement on the firing was short-and-sweet, explaining that the termination was "for cause."

The news follows a fumbled attempt to hold onto Ryan Caldwell, the former co-manager of the firm's flagship Ivy Asset Strategy, according to the Wall Street Journal. In May, the firm announced that Caldwell would be leaving in the middle of June, declaring then that Caldwell would remain in a consulting role for two roles. However, on June 20, the firm pulled a 180 and declared that Caldwell would no longer work with the fund.

The news dragged Waddell's shares down, and also imperiled the ratings for at least two funds. Morningstar shifted the rating of the High Income fund from "Neutral" to "Under Review." Meanwhile, the research firm lowered its rating of the Ivy Asset Strategy from "Bronze" to "Neutral."

In the midst of all this mishegas, Waddell & Reed Financial appointed Derek Burke the new president of Waddell & Reed Inc., taking charge of the firm's 1,737 financial advisers across the country, according to the Kansas City Star. 

Edited by: Tommy Fernandez


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