The fund was incepted in July 1979 and is managed by Waddell & Reed Investment Management Company (WRIMCO). The primary goal of the fund is to earn a high level of current income. As a secondary goal, the fund seeks capital growth when consistent with the primary goal. The fund seeks to achieve these goals by investing primarily in a diversified portfolio of high-yield, high-risk, fixed income securities, the risks of which are, in the judgment of WRIMCO, consistent with the fund's goals. The fund invests primarily in lower quality bonds, commonly called junk bonds. The fund may invest an unlimited amount of its total assets in junk bonds. The fund may invest in bonds of any maturity and may invest in companies of any size. The fund may also invest up to 20% of its total assets in common stocks in order to seek capital growth. The fund emphasizes a blend of value and growth in its selection of common stocks. The fund declares dividends from net investment income daily and pays them monthly. Capital gains, if any, are paid annually.