Waddell & Reed's investment solutions − from mutual funds to fee-based programs to separately managed accounts − represent a breadth and depth of offering designed to put you at a distinct advantage when it comes to building a diversified investment portfolio.
Fee-Based Programs1
We offer a wide range of fee-based, asset allocation advisory products that utilize innovative product structures and draw upon the expertise of world-class money managers.
Managed Allocation Portfolios (MAP)
The MAP Program consists of four distinctive fee-based asset allocation products: MAP, MAPPlus, MAPFlex and MAPSelect.
A MAP account is a comprehensive, turnkey account offering a variety of features and benefits
| MAP | MAPPlus | MAPFlex | MAPSelect |
|---|---|---|---|
| 5 model portfolios | 5 model portfolios, flexibility to adjust portfolios | 5 model portfolios, flexibility to adjust portfolios | 5 model portfolios, flexibility to adjust portfolios |
| Mutual funds through Waddell & Reed Advisors Funds and Ivy Funds | Mutual funds through Waddell & Reed Advisors Funds and Ivy Funds | Mutual funds through a broad range of fund families | Mutual funds & EFT's that have met the stringest investment guidelines of Lockwood Capital Management |
| Available at various levels of client investment | Available at various levels of client investment | Not Included | Not Included |
| $15,000 | $25,000 | $50,000 | $100,000 |
| Conditional rebalancing | Conditional rebalancing | Conditional rebalancing | Conditional rebalancing |
| 1.30%2 | 1.50%2 | 1.20 - 2.20%3 | 0.65 - 1.90%3 |
| Advanced commission at point-of-sale (3 years of annual fees) offering a unique opportunity to transition to a fee-based practice Independent fund analysis by Morningstar, the world leader in mutual fund research. |
Independent fund analysis by Morningstar, the world leader in mutual fund research. | ||
Strategic Portfolio Allocation (SPA)
Strategic Portfolio Allocation is a predictive, dynamic asset allocation program developed by Waddell & Reed in conjunction with Legend Advisory Corporation, a leader in the use of sophisticated artificial intelligence technology in the investment management process.
Specifically, Strategic Portfolio Allocation uses a proprietary neural network to provide investment recommendations for its asset allocation programs. This neural network, known as the Asset Allocation Neural Network (AANN), has been developed for the purpose of potentially reducing risk and enhancing portfolio returns within given risk tolerances.
- 5 model portfolios with objectives ranging from conservative to aggressive, based on investment objectives, goals, risk tolerance and other factors.
- Utilizes a variety of tools, including fundamental and computer-generated analysis, to develop and rebalance portfolios.
- Investment selections from Waddell & Reed Advisors Funds and Ivy Funds.
- Minimum investment - $10,000.
- Maximum annual asset-based fee ranges from 2.00% to 2.25% depending upon the model selected. In addition, SPA fees are reduced as the account reaches certain asset levels.
Product highlights:
Lockwood Investment Strategies (LIS)
Lockwood Investment Strategies represents the latest generation of advisory programs, known as unified managed accounts (UMAs), that provide professionally managed, diversified portfolios to help meet investors' wealth management needs. Lockwood Capital Management, Inc. (LCM) serves as the portfolio manager, constructing an asset allocation strategy and selecting appropriate investments for each component of the portfolios.
Lockwood Investment Strategies is based on the same philosophy that has long guided corporate pension funds and public retirement plans responsible for the retirement assets of thousands of employees. LIS offers a level of investment sophistication and ongoing oversight typically reserved for large institutional plans.
- 5 model portfolios managed with the intent to achieve broad diversification by asset class, investment style, money manager and investment vehicle.
- Money managers and/or investment vehicle selection based on disciplined due diligence for each component of the asset allocation mix.
- A mix of investment vehicles, including mutual funds, exchange-traded funds (ETFs), individual securities and alternative investments, residing in a single account.
- Periodic rebalancing to ensure the portfolio is aligned with the desired investment objective and changing market conditions.
- Ongoing monitoring for tax efficiency and to reduce security overlap and sector concentration.
- Minimum investment - $250,000.
- Fee negotiable from 1.00% to 2.25% across all asset brackets.
Product highlights:
Separately Managed Accounts (SMAs)
We offer a wide range of equity and fixed income separately managed accounts from leading asset managers. Our managed account partner, Lockwood Advisors, Inc. performs all due diligence and manager selection.
Lockwood employs state-of-the-art information-gathering and analytic technology, a committee-based decision-making process and, of course, years of experience to select managers for the SMA program. Their investment research process consists of initial screening, qualitative analysis, qualitative assessment, committee review and ongoing monitoring.
- Applying a multi-disciplined approach designed to identify talented money management firms;
- Introducing new money managers in response to client needs;
- Maintaining ongoing monitoring and review of money managers;
- Removing money managers when appropriate;
- Communicating the results of their work to you on a timely basis.
The Lockwood Investment Research team seeks to continually respond to the needs of the market by:
Lockwood Advisors, Inc. is an SEC Registered Investment Adviser and an affiliate of Pershing LLC, each subsidiaries of The Bank of New York Mellon Corporation.
Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for the mutual funds offered by Waddell & Reed or Ivy Funds, visit www.waddell.com. Please read the prospectus carefully before investing.
1 Fee-based programs are offered by Waddell & Reed, Inc., in its capacity as a registered investment advisor.
2 The fee shown for MAP and MAPPlus is the maximum annual asset-based fee and is reduced as the account reaches certain asset levels.
3 The annual asset-based fee for MAPFlex and MAPSelect includes both a platform fee and a consultant fee. Advisors and clients have flexibility when setting the consultant fee. The annual assetbase fee range shown represents the maximum fee for the lowest investment level. Fees are reduced as the account reaches certain asset levels.
