Fund Description

The fund was incepted in March 1964 and is managed by Waddell & Reed Investment Management Company (WRIMCO). The fund seeks a reasonable return with emphasis on the preservation of principal. The fund seeks to achieve its goal by investing primarily in domestic, and to a lesser extent foreign, debt securities usually of investment grade, including bonds rated BBB and higher by Standard & Poor's and Baa and higher by Moody's Corporation. The fund has no limitations regarding the maturity duration or dollar weighted average of its holdings. The fund may invest in debt securities with varying maturities and can invest in securities of companies of any size. The fund declares dividends from net investment income daily and pays them monthly. Capital gains, if any, are paid annually.