Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Waddell Cuts Costs By Ten Percent Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, April 27, 2016

Waddell Cuts Costs By Ten Percent

News summary by MFWire's editors

Hank Herrmann is trimming Waddell & Reed's [profile] headcount as part of a big cost-cutting effort.

Hank Hermann
Waddell & Reed Financial
Chairman, Chief Executive Officer
Yesterday the Overland Park, Kansas-based mutual fund and brokerage shop unveiled its Q1 2016 earnings, which revealed a 22.5-percent year-over-year drop in AUM to $95.2 billion. The release also highlight "cost cutting initiatives ... intended to reduce fixed operating expenses by approximately 10%, or $40 million."

The Kansas City Business Journal and the Kansas City Star both covered the layoffs. The former reports that Waddell first did a voluntary separation program, which ended on April, and then started an involuntary one on April 22.

On Waddell's earnings call yesterday, as revealed in Seeking Alpha's transcript of the call, Waddell chief financial officer Brent Bloss offered more information on the cuts.

"We believe at this time that most of the cost will be related to consulting, legal, some of the operational aspects, websites, as well as processing in the field," Bloss said on the call, in response to a question from Jefferies analyst Daniel Fannon.

Fannon, who is also treasurer and senior vice president, added that in Q1 (prior to the latest cost-cutting efforts) "some of the savings came from lower legal costs and advertising costs." And Phil Sanders, chief investment officer and senior vice president at Waddell, clarified in response to a question from William Blair analyst Chris Shutler that the "cost reduction efforts" have only resulted in three departures in Waddell's "80-plus" people in the investing division; "one co-portfolio manager in a product, and then two analysts."

The cost-cutting comes even as Waddell is tweaking the brand of Ivy Funds to Ivy Investments [profile], and redoing that subsidiary's logo and website. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2021: Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


  1. MFDF webinar - Board Oversight of ETFs, March 3
  2. FinReg Outlook 2021, March 10
  3. MFDF Director Discussion Series - Open Forum via Zoom (Midwest), March 10
  4. Irish Funds North American Digital Seminar, March 11
  5. MFDF webinar - Municipal and Taxable Fixed Income — A Multi-Speed Recovery, March 12
  6. 2021 Virtual Mutual Funds and Investment Management Conference, Mar 15-19
  7. Women for Impact - A Call to Action, March 16
  8. SEC & DOL Standard of Conduct Rulemakings — Present & Future Considerations, March 23
  9. Expect Miracles Foundation's Virtual Mystery Game Night, March 24
  10. MFDF Director Discussion Series - Open Forum via Zoom, March 24
  11. ETFGI Global ETFs Insights Summit - ESG & Active ETF Trends, Mar 24-25
  12. MFDF webinar - Asset Management M&A for Fund Directors — Recent Trends and Governance Issues, March 31
  13. MFDF Director Discussion Series - Open Forum via Zoom, April 7
  14. MFDF In Focus: Board Oversight of Sub-advisers, April 15
  15. ETF.com Awards 2020, April 20
  16. The 31st Sub-Advised Funds Forum, Apr 20-21
  17. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
  18. FIASI virtual event - ESG in Fixed Income: Shining a Light on Transparency, Apr 22-23
  19. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
  20. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
  21. ICI 2021 General Membership Meeting - Day 1, May 6
  22. ICI 2021 General Membership Meeting - Day 2, May 13
  23. 2021 FINRA Annual Conference, May 18-20
  24. MFDF Director Discussion Series - Open Forum via Zoom, May 19
  25. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
  26. Irish Funds Online Annual Global Funds Conference 2021, May 19-20




©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use