Waddell & Reed profit falls 35.6 percent

A down stock market and customer withdrawals contributed to a 35.6 percent decline in profits at money manager Waddell & Reed Financial during the third quarter.

The Overland Park-based mutual fund company said it earned $48.1 million, or 58 cents a share, during July, August and September. A year earlier, it earned $74.6 million, or 89 cents a share.

“The underperformance of a few key (investment) strategies negatively impacted sales and obscured the underlying opportunities building across a broader number of funds,” chief executive Hank Herrmann said in the company’s announcement. “Volatility in the financial markets, the economic slowdown in China and uncertainty around the Federal Reserve’s (upcoming interest) rate decision has created considerable anxiety for investors.”

Waddell & Reed said the amount of money it manages fell 12 percent during the quarter, mostly from a decline in the stock market but also from net customer withdrawals. It managed $106 billion at the end of September.

Revenue in the quarter totaled $376.1 million, compared with $409.6 million a year ago, an 8 percent decline.

This story was originally published October 27, 2015 at 8:17 AM with the headline "Waddell & Reed profit falls 35.6 percent."