Waddell & Reed Financial, Inc. Fund Families Again Among Top Of “Best Mutual Fund Families” Rankings

Waddell & Reed Advisors Funds and Ivy Funds again both turned in a strong showing in the latest Barron’s ranking of the “Best Mutual Fund Families,” as Ivy Funds ranked No. 1 over the 10-year period and Waddell & Reed Advisors Funds ranked No. 5 over the last year. Ivy Funds appears in the top five in the 10-year ranking for the fourth year in a row, and in the top five of the five-year ranking for six straight years. Waddell & Reed Advisors Funds logged a top 10 finish across all three time periods.

“Regardless of market environment, investors and financial advisors need clarity and consistency in investment performance,” said Henry J. Herrmann, Chairman and CEO of Waddell & Reed Financial, Inc., parent company to both fund families. “We’re pleased to see that these rankings continue to validate the rigorous investment process and daily research we undertake in an effort to protect and grow client assets.”

Ivy Funds

Ivy Funds turned in a strong showing in both the 10-year and the five-year “Best Mutual Fund Families” list, ranking No. 1 out of 48 firms over the 10-year period and No. 5 over the five-year period, out of 55 firms, both ended Dec. 31, 2013. Ivy Funds narrowly missed the top 10 over the one-year period, ranking No. 11 out of 64 firms.

Since 2008, across a range of market cycles, Ivy Funds has been among the top five in the five-year rankings. Dating to 2007, Ivy Funds has been in the top 10 of the five-year ranking for seven straight years. Ivy lists among the top five in the 10-year ranking since 2010. Barron’s also included separate one-year rankings for the five specific asset categories in which funds must have a presence in order to qualify for the overall rankings. Ivy Funds ranked No. 4 out of the 64 firms in the Mixed Asset category (equity and fixed-income assets) for the year ended Dec. 31. 2013.

Waddell & Reed Advisors Funds

Making the top 10 across all three time periods, Waddell & Reed Advisors Funds ranked No. 5 out of 64 fund families over the last 12 months. The fund family ranked No. 9 over the five-year period, out of 55 firms, and has been in the top 10 of that period for five of the last six years. It ranked No. 4 over the 10-year period out of 48 firms. Waddell & Reed Advisors Funds ranked No. 3 out of the 64 firms in the Mixed Asset category (equity and fixed-income assets) for the year.

Consistency over time

Especially over the five-year period, Ivy Funds and Waddell & Reed Advisors Funds have demonstrated consistent historical performance:
 
Barron's 5-Year Performance Rankings
Year Ended       Waddell & Reed       Ivy Funds
2013 (55 firms)       9       5
2012 (53 firms)       16       2
2011 (53 firms)       2       1
2010 (53 firms)       2       1
2009 (54 firms)       1       2
2008 (53 firms)       1       3
2007 (61 firms)       23       7
           

The two fund families, both affiliates of Waddell & Reed Financial, Inc. (NYSE:WDR), utilize a rigorous research process that emphasizes longer-term performance with a focus on risk management, according to company executives, with the benefits realized over longer periods.

Barron’s rankings (published Feb. 8, 2014) are based on asset-weighted returns in five categories: domestic equity, world equity (including international and global portfolios), mixed asset (stocks and bonds), taxable bonds and tax exempt bonds. Rankings also take into account an individual fund’s performance within its Lipper peer group. Sales charges are not included in the calculation of returns, and the ranking period included time periods during which some funds’ returns were affected by expense reduction arrangements.

Both the Waddell & Reed Advisors and Ivy Fund families offer a broad fund lineup covering all major asset categories, including international and domestic equity funds, asset allocation funds, sector funds, fixed-income funds and money market funds.

The Waddell & Reed Advisors Funds are offered through Waddell & Reed financial advisors, the company’s network of personal financial planners with offices around the country. Ivy Funds are offered through the company’s wholesale channel, which includes national and regional broker/dealers, registered investment advisors and retirement platforms.

Through its subsidiaries, Waddell & Reed Financial, Inc. provides investment management and financial planning services to clients throughout the U.S. The firm had approximately $127 billion in total assets under management at Dec. 31, 2013. Waddell & Reed Investment Management Company serves as investment advisor to the Waddell & Reed Advisors Group of Mutual Funds, Ivy Funds Variable Insurance Portfolios and InvestEd Portfolios, while Ivy Investment Management Company serves as investment advisor to the Ivy Funds. Waddell & Reed, Inc. serves as principal underwriter and distributor to the Waddell & Reed Advisors Group of Mutual Funds, Ivy Funds Variable Insurance Portfolios, and InvestEd Portfolios, while Ivy Funds Distributor, Inc. serves as principal underwriter and distributor to the Ivy Funds.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus, or if available, a summary prospectus, containing this and other information for any of the Waddell & Reed Advisors or Ivy Funds, call your financial advisor or visit www.waddell.com or www.ivyfunds.com . Please read the prospectus or summary prospectus carefully before investing.

Investment return and principal value will fluctuate, and it is possible to lose money by investing. Past performance is not a guarantee of future results.

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