Waddell & Reed Reshuffles Fund Lineup
The firm announced that it would integrate six Ivy funds into existing W&R funds and all W&R funds would operate under the Ivy Funds brand. The company said that following these mergers, the new Ivy Funds family would comprise 18 funds with pro forma assets of approximately $1.5 billion. Two current Ivy Funds would be merged into Waddell & Reed Advisors Funds and would not be part of the new Ivy Funds family.
The mergers have been approved by the board of trustees of the Ivy Funds and the board of directors of the W&R Funds. A regulatory filing related to the mergers will be submitted to the US Securities and Exchange Commission next week. Shareholders of each merging fund are scheduled to vote at a special meeting to be held in early June. If approved, the mergers would take place in late June.
Each shareholder in the merging fund will receive shares of the corresponding surviving fund in exchange for their shares. The exchange will be tax-free. The new Ivy family would be in place by June 30, 2003.
According to the company, the planned individual fund outcomes are as follows:
Domestic equity funds
- Merge Ivy US Blue Chip into W&R Core Equity, managed by Jim Wineland of Waddell & Reed
- Merge Ivy US Emerging Growth into W&R Mid Cap Growth, managed by Kimberly Scott of Waddell & Reed
- Merge Ivy Growth into Waddell & Reed Advisors Accumulative, managed by Tony Intagliata of Waddell & Reed
International/Global equity funds
- Merge Ivy International Small Companies into W&R International Growth, managed by Thomas Mengel of Waddell & Reed
- Merge Ivy Global into W&R International Growth, managed by Thomas Mengel of Waddell & Reed
- Merge Ivy Developing Markets into Ivy Pacific Opportunities, managed by Thomas Mengel of Waddell & Reed
Specialty funds
- Merge Ivy Global Science & Technology into W&R Science and Technology, managed by Zachary Shafran of Waddell & Reed
Fixed income funds
- Merge Ivy Bond into Waddell & Reed Advisors Bond, managed by Jim Cusser of Waddell & Reed
- Merge Ivy Money Market into W&R Money Market, managed by Mira Stevovich of Waddell & Reed.
The following W&R Funds will become Ivy Funds (all managed by Waddell & Reed):
- W&R Large Cap Growth Fund, managed by Dan Becker
- W&R Small Cap Growth Fund, managed by Grant Sarris
- W&R Asset Strategy Fund, managed by Mike Avery and Dan Vrabac
- W&R Tax-Managed Equity Fund, managed by Barry Ogden
- W&R High Income Fund, managed by Louise Rieke
- W&R Limited-Term Bond Fund, managed by Pat Sterner
- W&R Municipal Bond Fund, managed by Bryan Bailey.
The ‘New’ Ivy Fund Family
When all is said and done, the new Ivy Fund family would then be comprised of:
Domestic equity fund
- Ivy Core Equity Fund, managed by Jim Wineland, with $285.3 million in pro forma assets
- Ivy Large Cap Growth Fund, managed by Dan Becker, with $25.4 million in pro forma assets
- Ivy Mid Cap Growth Fund, managed by Kim Scott, with $46.8 million in pro forma assets
- Ivy Small Cap Growth Fund, managed by Grant Sarris, with $337.5 million in pro forma assets
- Ivy Tax-Managed Equity Fund, managed by Barry Ogden, with $4.6 million in pro forma assets
International Equity funds
- Ivy Cundill Global Value Fund, managed by Peter Cundill, with $5.5 million in pro forma assets
- Ivy European Opportunities Fund, managed by Stephen Peak, with $70.2 million in pro forma assets
- Ivy International Value Fund, managed by Thomas Mengel, with $45.3 million in pro forma assets
- Ivy Pacific Opportunities Fund, managed by Thomas Mengel, with $8.6 million in pro forma assets
- Ivy International Growth Fund, managed by Thomas Mengel, with $78.8 million in pro forma assets
- Ivy International Fund, managed by Thomas Mengel, with $210 million in pro forma assets
Flexible Portfolio/Specialty
- Ivy Global Natural Resources Fund, managed by Fred Sturm, with $31.4 million in pro forma assets
- Ivy Science and Technology Fund, managed by Zachary Shafran, with $108.9 million in pro forma assets
- Ivy Asset Strategy Fund, managed by Mike Avery and Dan Vrabac, with $61.9 million in pro forma assets.
Fixed Income funds
- Ivy High Income Fund, managed by Louise Rieke, with $23.1 million in pro forma assets
- Ivy Limited-Term Bond Fund, managed by Pat Sterner, with $62.6 million in pro forma assets
- Ivy Municipal Bond Fund, managed by Bryan Bailey, with $27.1 million in pro forma assets
- Ivy Money Market Fund, managed by Mira Stevovich, with $36.2 million in pro forma assets.
Going forward, the Ivy Funds will carry the same share classes and the same sales load structure as the previous W&R Funds (A,B, C &Y).Waddell & Reed said that after the mergers, the Ivy Funds would continue to be offered for sale through intermediary channels as well as through Waddell & Reed’s network of proprietary financial advisors.