Fund Description

The fund was incepted in June 1970 and is managed by Waddell & Reed Investment Management Company (WRIMCO). The primary goal of the fund is to provide current income to the extent that, in WRIMCO's opinion, market and economic conditions permit. As a secondary goal, the fund seeks long-term appreciation of capital. The fund seeks to achieve its goals by investing primarily in a diversified portfolio of income-producing securities (including common stock and debt securities) of U.S., and to a lesser extent, foreign issuers. The fund generally owns equity securities of medium to large, well-established companies, that are usually dividend-producing securities. For the most part, the fund's debt securities are either U.S. Government securities or investment-grade corporate bonds. The fund has no limitations on the range of maturities of the debt securities in which it may invest, nor on the size of the companies in which it may invest. The fund pays dividends quarterly and capital gains, if any, are distributed annually.