Waddell & Reed
| Company type | Public (until 2021), Subsidiary (after 2021) |
|---|---|
| Industry | Asset management, Financial planning |
| Founded | September 3, 1937 in Kansas City, Missouri, United States |
| Founder | Chauncey Waddell, Cameron Reed |
| Fate | Acquired by Macquarie Asset Management in 2021 |
| Headquarters | Overland Park , United States |
Area served | United States |
| Products | Asset management, Mutual funds, Financial planning |
| Parent | Macquarie Asset Management (Macquarie Group) |
| Website | www |
Waddell & Reed Financial, Inc. was a United States-based firm specializing in asset management and financial planning, established in 1937 in Kansas City, Missouri. The company was publicly listed from 1998 until 2021 and operated through asset management and distribution subsidiaries such as Ivy Investment Management Company and Waddell & Reed Investment Management Company. Its product distribution was organized into three primary segments:
- Advisors channel (a network comprising personal financial advisors);
- Wholesale channel (consisting of independent broker/dealers, registered investment advisors, and retirement platforms); and
- Institutional channel (serving pension plans, defined benefit plans, and endowments).
History
Waddell & Reed was founded on September 3, 1937, by Chauncey Waddell and Cameron Reed and was among the pioneers in offering mutual funds following the enactment of the Investment Company Act of 1940. The company’s United Income Fund and United Accumulative Fund ranked among the earliest mutual funds available in the United States.
In 1969, Continental Investment Corporation purchased Waddell & Reed for $82.5 million. Later, in 1981, Liberty National Insurance Holding Company—later known as Torchmark Corporation—acquired it for $160 million. Torchmark subsequently spun off Waddell & Reed in 1998 by distributing shares to its own shareholders.
The firm became involved in the 2010 flash crash incident due to a malfunctioning trading algorithm combined with high-frequency trading dynamics.
In February 2016, Waddell & Reed took an ownership position of at least 8.2% in the financially distressed Spanish corporation Abengoa.
In 2021, Macquarie Asset Management, part of the Macquarie Group, purchased Waddell & Reed, turning it into a fully owned subsidiary. Following this acquisition, Macquarie divested Waddell & Reed’s wealth management division to LPL Financial and integrated Ivy Investments into Delaware Funds.