Waddell & Reed Financial IncNYSE
Tue, Oct. 25, 6:48 AM
Mon, Oct. 24, 5:30 PM
- ABG, AGR, AKS, ASTE, ATI, AXE, BAX, BHI, BPOP, CAT, CIT, CNC, CPLA, CTG, CVLT, CYNO, DD, EAT, EDU, ETR, FBC, FBP, FCAU, FCX, FELE, GBX, GLW, GM, GPK, HUBB, IIVI, JBLU, JNS, KEY, KKR, LLY, LMT, LPT, MAS, MDSO, MINI, MMC, MMM, MRK, NCI, NLSN, NVS, PCAR, PG, PII, PNR, R, RTIX, S, SAVE, SCHN, SERV, SHW, SIR, ST, STAY, TNC, UA, USG, UTX, VLO, WAB, WAT, WDR, WHR, WSO
Mon, Oct. 17, 2:00 PM
- It's the kind of headline that makes one wonder if the bottom might already be in for traditional asset managers.
- The numbers won't surprise anyone who's been following along for any length of time: Over the three years ended Aug. 31, investors added nearly $1.3T to passive mutual funds and ETFs, while pulling more than $250M from active mutual funds.
- "Stock pickers, archetypes of 20th century Wall Street, are being pushed to the margins," write Anne Tergesen and Jason Zweig. "The pressure has gotten so great that passive has become the default,” says former Fidelity CIO Philip Bullen.
- And by the way, there's still plenty of room for the trend to continue - 66% of mutual and exchange-traded fund assets are still actively invested (down from 84% ten years ago).
- Active fund firms that don't “position themselves for the sea change” will be “relegated to the dustbin of history," said Cohen & Steers (NYSE:CNS) in shareholder letter earlier this year.
- Notable industry names: BLK, OZM, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, MN, EV, AMP
Thu, Oct. 13, 2:56 PM
- It's a mixed bag, but the continuing broad theme for flows is the domination of passive strategies and fixed-income.
- More than half of the managers in Katz's coverage universe saw outflows last month - WisdomTree (NASDAQ:WETF), Waddell & Reed (NYSE:WDR), and Franklin Resources (NYSE:BEN) getting hit the worst.
- Among active managers, only Affiliated Managers Group (NYSE:AMG) and AllianceBernstein (NYSE:AB) saw inflows.
Thu, Oct. 6, 8:51 AM
- In one of the highest quarterly amounts ever, investors moved $92B into ETFs in Q3, according to UBS, bringing AUM for U.S.-listed ETFs to about $2.4T.
- For the year, $150B has flowed into ETFs, putting the vehicles on track for their third straight year of inflows north of $200B. The inflows stand in major contrast to either outright net exits or minimal inflows for mutual funds.
- Still, even after doubling AUM since 2011, ETFs account for just 17% of mutual fund assets.
- Interested parties: BLK, WETF, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, EV
Tue, Sep. 20, 7:05 AM
Fri, Sep. 16, 8:31 AM
- Just 9.5% of actively-managed large-cap domestic equity funds beat the S&P 500 in the five year ended August 31 - the worst 5-year record since 1999, according to Morningstar. By comparison, in the five years ended 2010, nearly 50% topped the S&P.
- The lame results haven't gone unnoticed, with investors yanking $422B from roughly 3K mutual funds in the past five years, and putting that money and more into passive vehicles (ETFs).
- In the year ended June 30, 85% of large-cap stock funds, 88% of mid-cap funds, and 89% of small-cap funds failed to match their bogeys. "Pretty appalling," says S&P's Aye Soe. "Given the choppiness in the markets we would have expected the active managers to come out looking better.”
- Interested parties include BlackRock (NYSE:BLK), WisdomTree (NASDAQ:WETF), Franklin Resources (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), Calamos (NASDAQ:CLMS), Invesco (NYSE:IVZ), T. Rowe Price (NASDAQ:TROW), AllianceBernstein (NYSE:AB), Affiliated Managers (NYSE:AMG), Federated Investors (NYSE:FII), Waddell & Reed (NYSE:WDR), Artisan Partners (NYSE:APAM)
Wed, Sep. 7, 3:16 AM
- "We think the asset management industry, which was always very fragmented and highly profitable (with low capital intensity), will become much more concentrated over the next five years - especially in U.S. retail with BlackRock (NYSE:BLK) and Vanguard clear winners," Credit Suisse says in a note.
- Firm says it prefers stocks that will exceed net flow/earnings expectations and can maintain or expand valuation levels.
- Top long is AMG, which CS thinks will post much stronger flows in 3Q16, has low exposure to the DOL rule (only 16% of AuM is from U.S. retail and less in retirement), and is one of the cheapest asset managers on cash earnings.
- Also likes LM, which is mainly a valuation and improving earnings visibility play.
- Likes BLK, which is one of the few beneficiaries of the DOL rule (through iShares and Aladdin/Solutions).
- On a longer-term horizon, likes BX (high FE AuM growth + improving cash earnings) and WETF (improving net flows + LT M&A target).
- Says BEN and WDR could both see among the largest net flow impacts from the DOL rule.
Tue, Jul. 26, 12:14 PM
- Adjusted net income of $48.9M or $0.59 per share in Q2 compared to $67.4M and $0.80 a year ago, but topped expectations for $0.48.
- AUM fell 9% during the quarter to $86B thanks to outflows from the institutional and unaffiliated distribution channels. "The company is not without challenges," says incoming CEO Philip Sanders.
- Management fees fell just 3% Q/Q thanks to a mix-shift in the asset base.
- WDR -0.9%
Tue, Jul. 26, 7:18 AM
Mon, Jul. 25, 5:30 PM
- ABG, ACW, AHGP, AKS, ALLY, AOS, ARLP, ASTE, ATI, AUDC, AVY, AXE, AXTA, BAX, BEAV, BP, BPOP, CAT, CHKP, CIGI, CNC, CNHI, CNX, CPLA, CSL, CTG, CVLT, CYNO, DD, DTE, EEFT, EXAS, FBC, FCH, FCX, FELE, FIS, FMER, GPK, HOT, HUBB, HZO, ICLR, JBLU, JNS, KEY, KKR, LLY, LPT, MAS, MBLY, MCD, MDXG, MMM, NCI, NEO, NLSN, NORD, PCAR, PCH, RAI, RDWR, SAH, SIR, SIRI, ST, TGNA, TNC, TOWR, TROW, UA, USG, UTX, VLO, VZ, WAT, WDR, WWW, XRS
Thu, Jul. 7, 1:35 PM
- Continuing to benefit from the trend toward low-cost, index-tracking funds, Vanguard Group pulled in $148B in the first half of the year, topping last year's record H1 haul of $140B.
- The fund giant sports four of the top 10 ETF inflow recipients so far this year, the S&P 500 Index Fund (NYSEARCA:VOO), the FTSE Developed Markets ETF (NYSEARCA:VEA), the REIT Index Fund (NYSEARCA:VNQ), and the Total Bond Market Index Fund (NYSEARCA:BND).
- Eyeing with envy: BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM
Mon, Jun. 20, 7:21 AM
Wed, Jun. 8, 11:20 AM
- Citing continued underperformance of the company's flagship funds, accelerating outflows, high senior management turnover, and exposure to the DOL's new fiduciary rule, Moody's last week cut the credit rating for Waddell & Reed (NYSE:WDR) to Baa3, one level above junk status.
- Those management departures include CEO Hank Herrmann who announced his exit last month, and Michael Avery - who co-manages the Ivy Asset Strategy Fund (MUTF:WASAX).
- Company AUM fell 23% to $95B in the 12 months ended on March 31.
Tue, May 24, 1:07 PM
- Hank Herrmann had served as CEO at Waddell & Reed (WDR +3.9%) since 2005. He will remain as non-executive board chairman. Current CIO Philip Sanders will replace Herrmann atop the company while retaining CIO status as well.
- Given Sanders' long tenure at the company and his remaining presence on the board, Citi's William Katz wonders just how much change is happening at WDR. Moreover, whatever changes do occur are not likely to dam the steady stream of outflows, and, in fact, could exacerbate them.
- Gabelli says it's a pretty abrupt change, despite company assurances that it's a long-term decision.
Tue, Apr. 26, 8:59 AM
- Q1 operating income of $71.4M fell 22% from Q4 and 32% Y/Y as AUM of $95.7B fell from $108.9B in Q4 and $123.3B a year ago.
- Management fees fell by 13% Q/Q and 20% Y/Y.
- The company in February announced plans to bring expenses down to match the reality of lower AUM, and has identified the hoped-for 10%, or $40M annually in savings.
- Conference call at 10 ET
- Previously: Waddell & Reed Financial EPS of $0.45 (April 26)
- WDR flat premarket