Waddell & Reed Financial, Inc. (NYSE:WDR)

CAPS Rating: 4 out of 5

The Company conducts business through its subsidiaries and provides investment management, investment product underwriting and distribution and shareholder services administration to mutual funds and institutional and separately managed accounts.

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Player Avatar ORAY817 (65.67) Submitted: 4/11/2007 12:00:19 PM : Outperform Start Price: $19.62 WDR Score: +125.70

One of the smaller of the big players on Wall Street has changed gears. Investment performance is solidly growing. Sales force retention is far above industry. Concept makes sense to clients and they don't go away.

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Member Avatar rzmartin (< 20) Submitted: 6/18/2007 1:10:15 PM
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Two words.... Proprietary Funds. This company specializes in high expense in-house funds. In a world where Financial Planning (by a CFP) is complimentary at you local banks and mutual funds have practically no expenses this company will not survive.

Member Avatar ORAY817 (65.67) Submitted: 6/29/2007 4:04:40 PM
Recs: 1

What local bank offers the 'complimentary' service of a CFP that also specializes in low expense funds? Two words.... NO ONE. Even in a world built on wrap accounts and fee based planning, CFP's still serve the greater good of the client by investing their assets in performing and risk-adjusted allocation models. Banks that offer 'complimentary' financial planning also have asset based incentives attached to providing those services. If I had someone that would give me $250k + of their hard-earned money to do with what I please (aka BANK) for a fixed amount of time, I'd make a better offer than giving them a simple 'financial plan' that doesn't provide any real value to their lives. Granting a fixed-rate of 5% or so to this unsuspecting prospect only guarantees the profitability of the bank.W & R will survive (and thrive) because of the place in the market that they are actually expanding in. Just because they don't spend millions of dollars in advertising every quarter, don't think that they are underserving their client base. Take a look at the past few quarterly reports for sales trends before you compare your apples & lemons.

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