Advisory Service Brochures
For a full description of Waddell & Reed, Inc.’s investment advisory programs and services, including fees and expenses, please refer to the relevant Advisory Services Brochure (ADV Part 2A) below:
Revenue Sharing Disclosure
Waddell & Reed, Inc. (“WRI”) offers a variety of products and programs including mutual funds, annuities, life insurance, retirement platforms, and investment advisory programs both directly and through third parties. WRI has entered into agreements with select product providers referred to as revenue sharing arrangements.
Client Relationship Notification
On June 9, 2017, a new rule implemented by the U.S. Department of Labor became applicable to financial institutions and financial advisors when making certain investment recommendations to owners of retirement accounts.
To assist clients and prospective clients in assessing recommendations made by Waddell & Reed financial advisors, important client relationship information is being made available in the Client Relationship Notification.
Schedule of Miscellaneous Account and Service Fees
Waddell & Reed, Inc. performs periodic fee reviews of its Brokerage accounts to ensure the fees being charged are appropriate based on the costs associated with custody and transaction activity through Pershing, LLC. The following is intended to provide an overview of the fees associated with a Waddell & Reed, Inc. brokerage account.
SEC-Required Report on Routing of Customer Orders
Waddell & Reed, Inc. ("W&R") introduces transactions on a fully disclosed basis to our clearing firm, Pershing LLC ("Pershing") . In November 2000, the U.S. Securities and Exchange Commission ("SEC") adopted new rules aimed at improving the quality and availability of disclosure related to order execution and routing practices. Pershing has prepared reports pursuant to SEC Rule 606 that requires all brokerage firms to make publicly available quarterly reports on their order routing practices. The report provides information on the routing of "non-directed orders" - any order that the customer has not specifically instructed to be routed to a particular venue for execution. For these non-directed orders, our clearing firm has selected the execution venue on behalf of its customers.
The report is divided into four sections: one for securities listed on the New York Stock Exchange, one for securities listed on The Nasdaq Stock Market, one for securities listed on the American Stock Exchange or regional exchanges, and one for exchange-listed options. For each section, this report identifies the venues most often selected by the clearing firm, sets forth the percentage of various types of orders routed to the venues, and discusses the material aspects of the respective clearing firm's relationship with the venues. W&R directs its equity order flow to its clearing firm, Pershing, for routing and execution based upon where the customer's account is held. W&R does not receive compensation for directing order flow to Pershing.
Click here if your account is held at Pershing (enter WADDELL & REED, INC when prompted for the broker-dealer's full name).