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Earnings fall 18.7 percent at Waddell and Reed

Investment outflows cut into revenues and earnings at Waddell and Reed Financial in the second quarter. The view here is of the firm’s trading desk.
Investment outflows cut into revenues and earnings at Waddell and Reed Financial in the second quarter. The view here is of the firm’s trading desk. along@kcstar.com

Customer withdrawals reduced revenues 1.7 percent and earnings 18.7 percent at Waddell and Reed Financial in the second quarter.

The Overland Park-based mutual fund company said it earned $67.4 million, or 80 cents a share, during April, May and June. A year ago, it earned $83 million, or 98 cents a share, in the quarter.

Two fund categories — asset strategy and high income — contributed most to a $1.1 billion net outflow of money from accounts during the quarter, the company said. The exit rate was better than the $3.6 billion net outflows Waddell and Reed saw in the first three months of the year.

Assets managed by the company ended June at $121 billion, down 11 percent from a year ago.

Revenues totaled $394 million in the second quarter, down 1.7 percent from a year ago, according to the earnings report.

Shares of Waddell and Reed climbed 1.1 percent, gaining 49 cents and closing Tuesday at $43.84 after the earnings report.

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