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Waddell & Reed (WDR) October AUM Declines on Net Outflows

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Waddell & Reed Financial, Inc. reported preliminary assets under management (AUM) of $66.2 billion as of Oct 31, 2020, which decreased 2.5% from the prior-month level.

During the month, the company witnessed net outflows of $705 million along with market depreciation of $992 million. Both the factors contributed to lower AUM. Of the total AUM, about 95% comprised retail AUM, while the rest were institutional.

Waddell & Reed recorded total institutional accounts of $3 billion at the end of October, down 4.4% sequentially. Also, it recorded $63.1 billion in retail AUM compared with $64.7 billion a month ago.

The company’s focus on strengthening the Wealth Management channel is expected to support profitability over the long term. Though outflows and weak revenue growth are major near-term concerns, its efforts to reduce costs and improve efficiency are impressive.

Shares of the company have gained 27.6% over the past six months compared with 27.9% growth recorded by the industry it belongs to.

Waddell & Reed currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Asset Managers

Cohen & Steers (CNS - Free Report) reported preliminary AUM of $71.3 billion as of Oct 31, 2020, which increased 1% from the prior-month level. Net inflows of $2 billion were partially offset by market depreciation of $1.1 billion and distributions of $219 million.

Victory Capital Holdings (VCTR - Free Report) announced AUM by its subsidiaries of $131.1 billion for October 2020. The results reflect a 1.2% decline from $132.7 billion on Sep 30, 2020.

Invesco’s (IVZ - Free Report) preliminary month-end AUM of $1,206.5 billion represents an 1% decrease from the prior month. This was largely due to unfavorable market returns, which lowered the company’s AUM by $10 billion. Further, Invesco witnessed total net outflows of $2.3 billion during the month.

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