Waddell & Reed

Fund Detail

Waddell & Reed Advisors Continental Income Fund
Class A Shares

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Fund Facts
Ticker Symbol UNCIX
CUSIP 930057757
Fund Code 627
Fund Type Specialty Funds
Fund Inception 6/9/1970
Class Inception 6/9/1970
Fiscal Year End June
Dividends Paid March, June, September, December
Fund Assets (as of 1/31/2018) $1.4 bil
Total Equity Holdings (as of 1/31/2018) 53
Total Holdings (as of 1/31/2018) 222
Portfolio Turnover Rate (as of 6/30/2017) 52%
Lipper Category Mixed-Asset Target Alloc Growth Funds
Morningstar Category Allocation--50% to 70% Equity
Benchmarks S&P 500 TR USD
Bloomberg Barclays US Govt/Credit TR USD
Daily Prices
as of 2/23/2018
Net Asset Value (NAV) $9.74
NAV Change ($) $0.10
NAV Change (%) 1.04%
Weekly NAV Change ($) $0.01
Weekly NAV Change (%) 0.10%
Public Offering Price (POP) $10.33
Historical Prices & Distributions
Please select a date
Fund Description

Balancing potential risk and reward in a complex world


Straightforward approach
A traditional balanced fund with predictable guardrails that generally invests two-thirds of its assets in U.S. equities and one-third of its assets in fixed-income securities.
Management discipline
Uses fundamental analysis and rigorous screening of stocks and bonds to determine portfolio composition.
Competitive track record
Seeks balanced, consistent growth and current income while managing risk. Manager utilizes a disciplined investment process that is designed to deliver consistent results.
Morningstar Style Box
Source: Morningstar
Returns and Expenses

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Performance at NAV does not include the effect of sales charges, if it had, performance shown would be lower. Class A shares, including sales charges, reflects the maximum applicable front-end sales load.

Monthly Rates of Return
(Returns for periods of less than 1-yr are not annualized)
Average Annual Total Returns
as of 9/30/2018
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV N/A N/A N/A N/A N/A N/A
Fund with 5.75% sales charge N/A N/A N/A N/A N/A N/A
S&P 500 TR USD 10.56% 17.91% 17.31% 13.95% 11.97% N/A
Bloomberg Barclays US Govt/Credit TR USD -1.85% -1.37% 1.45% 2.23% 3.95% N/A
Lipper Mixed-Asset Target Alloc Growth Funds 3.61% 7.85% 9.89% 7.50% 7.86% 9.30%
Quarterly Rates of Return
(Returns for periods of less than 1-yr are not annualized)
Average Annual Total Returns
as of 9/30/2018
  YTD 1yr 3yr 5yr 10yr Life
Fund at NAV N/A N/A N/A N/A N/A N/A
Fund with 5.75% sales charge N/A N/A N/A N/A N/A N/A
S&P 500 TR USD 10.56% 17.91% 17.31% 13.95% 11.97% N/A
Bloomberg Barclays US Govt/Credit TR USD -1.85% -1.37% 1.45% 2.23% 3.95% N/A
Lipper Mixed-Asset Target Alloc Growth Funds 3.61% 7.85% 9.89% 7.50% 7.86% 9.22%
Expense Ratios
as of 10/31/2017
Net 1.12%
Gross 1.14%
12-Month Trailing Distribution Yield
as of 1/31/2018
NAV 1.78%
With sales charge 1.69%
Annualized 30-Day SEC Yield
as of 1/31/2018
Subsidized 0.60%
Unsubsidized 0.58%
Growth of a $10,000 Investment
through 1/31/2018
 Continental Income A
 S&P 500 TR USD
 Bloomberg Barclays US Govt/Credit TR USD

Assumes an investment over 10 years or life of the share class, reinvestment of dividends and capital gains, and does not include the effect of sales charges or taxes.

Ratings and Rankings
Lipper Rankings
as of 1/31/2018
Category: Mixed-Asset Target Alloc Growth Funds
  Rank Percentile
1 Year 442 / 492 90
3 Year 411 / 440 94
5 Year 319 / 416 77
10 Year 60 / 306 20

Rankings are based on average annual total returns, but do not consider sales charges.

Morningstar Ratings
as of 1/31/2018
Category: Allocation--50% to 70% Equity
Overall (out of 681 Allocation--50% to 70% Equity)
3 Year (out of 681 Allocation--50% to 70% Equity)
5 Year (out of 633 Allocation--50% to 70% Equity)
10 Year (out of 441 Allocation--50% to 70% Equity)

Ratings are based on risk-adjusted returns.

Holdings
Portfolio Composition
(as a % of net assets as of 1/31/2018)
Domestic Common Stock 63.94%
Corporate Bonds 22.30%
Government Bonds 6.33%
Preferred Stock 3.71%
Foreign Common Stock 1.56%
Cash and Cash Equivalents 1.16%
Asset-Backed Securities 0.61%
Senior Loans 0.32%
Other Government Securities 0.07%
Sector Allocation
(as a % of equity holdings as of 1/31/2018)
Information Technology 18.8%
Consumer Discretionary 18.7%
Financials 16.5%
Industrials 15.6%
Health Care 15.3%
Energy 7.2%
Materials 6.5%
Consumer Staples 1.5%
Equity Country Allocation
(as a % of equity holdings as of 1/31/2018)
United States 97.7%
Belgium 1.5%
Ireland 0.7%
Fixed Income Country Allocation
(as a % of bond holdings as of 1/31/2018)
United States 84.9%
United Kingdom 5.7%
Ireland 2.3%
Japan 1.4%
Australia 1.2%
Singapore 1.0%
Netherlands 0.7%
Canada 0.7%
Guernsey 0.6%
France 0.4%
Hong Kong 0.4%
Mexico 0.2%
China 0.2%
Norway 0.2%
Top 10 Equity Holdings
(as a % of net assets as of 1/31/2018)
Autodesk, Inc. supplies PC software and multimedia tools. The company's two-dimensional and three-dimensional products are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications. Autodesk's software products are sold worldwide through a network of dealers and distributors.Autodesk, Inc. 2.53%
Microsoft Corporation is a multinational computer technology corporation that develops, manufactures, licenses and supports a wide range of software products for computing devices.Microsoft Corp. 2.16%
Las Vegas Sands Corp. (LVSC), a global developer of destination properties (integrated resorts), features accommodations, gaming, entertainment, retail, convention and exhibition facilities, celebrity chef restaurant, etc. The company operates in 3 geographic areas: Macao, Singapore, United States.Las Vegas Sands, Inc. 2.15%
Carnival Corporation operates as a cruise and vacation company.Carnival Corp. 2.14%
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company.JPMorgan Chase & Co. 2.06%
The Company has businesses engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing its products and services nationally and others in its markets located in Pennsylvania, Virginia, Missouri, Wisconsin and Georgia. It also provides products and services internationally. PNC Financial Services Group, Inc. (The) 2.06%
Twenty-First Century Fox, Inc., is a media company engaged in television broadcasting and film production through Cable Network Programming, Television, Filmed Entertainment, Direct Broadcast Satellite Television and other segments. The company was founded in 1979 and is headquartered in New York, NY.Twenty-First Century Fox, Inc. 2.05%
Lowe's Co., Inc., is a retailer of home improvement products for maintenance, repair, remodeling, home decorating, and property maintenance. Lowe's was founded in 1946 and is headquartered in Mooresville, NC.Lowe's Co., Inc. 2.02%
Intel Corporation is a semiconductor chip maker, developing advanced integrated digital technology products, primarily integrated circuits, for industries, such as computing and communications.Intel Corp. 2.02%
UnitedHealth Group is a diversified health and well-being company offering a spectrum of products and services serving consumers, employers, physicians, providers, hospitals and other caregivers.UnitedHealth Group, Inc. 1.98%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 12/31/2017)
Quality
(as a % of bond holdings as of 1/31/2018)
Government Bonds 21.4 %
AAA 1.0 %
AA 3.7 %
A 10.6 %
BBB 51.6 %
BB 6.8 %
B 2.9 %
CCC 2.0 %

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Maturity
(as a % of bond holdings as of 1/31/2018)
<1 Year 9.7 %
1-5 Years 29.7 %
5-10 Years 45.6 %
10-20 Years 3.4 %
>20 Years 11.7 %
Average Maturity 7.70 years
Effective Duration 5.83 years

Average maturity and effective duration include bonds, cash and cash equivalents.

Top 10 Industry Allocation
(as a % of equity holdings as of 1/31/2018)
Semiconductors 6.5%
Pharmaceuticals 4.4%
Specialty Chemicals 4.2%
Diversified Banks 4.2%
Managed Health Care 4.1%
Integrated Oil & Gas 3.7%
Application Software 3.7%
Biotechnology 3.6%
Aerospace & Defense 3.6%
Casinos & Gaming 3.1%

Pricing: All prices and year-to-date returns are based on closing quotes unless noted, as supplied to the NASDAQ by 6:00 p.m. Eastern time. YTD Prices can be updated 3 to 4 hours after the Daily Pricing information which can result in mismatching data.

Index Description: S&P 500 - An unmanaged index of common stocks. It is not possible to invest directly in an index.

Index Description: Bloomberg Barclays US Govt/Credit TR USD - The Barclays U.S. Government/Credit Index measures the performance of U.S. dollar-denominated United States Treasuries, government-related, and investment-grade U.S. corporate securities that have a remaining maturity of greater than or equal to one year. In addition, the securities have $250 million or more of outstanding face value and are fixed-rate and non-convertible securities. It is not possible to invest directly in an index.

Performance results for some funds may include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

Fee Waiver and/or Expense Reimbursement: Through October 31, 2017, Waddell & Reed Investment Management Company (WRIMCO), the Fund’s investment manager, Waddell & Reed, Inc. (Waddell & Reed), the Fund’s distributor, and / or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Fund’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and / or shareholder servicing fees to cap the total annual ordinary fund operating expenses as follows: Class A shares at 1.12%, Class B shares at 2.29%, Class C shares at 2.01%, Class Y at 0.88%. Prior to that date, the expense limitation may not be terminated by WRIMCO, Waddell & Reed, WISC or the Board of Trustees.

Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. The adviser and its affiliates have or may voluntarily waive a portion of their fees (including, but not limited to, distribution and service (12b-1) fees) and reimburse certain expenses. There is no guarantee that the fund will avoid a negative yield. Such undertaking may be amended or withdrawn at any time.

30-Day SEC Yield: is calculated based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.

12-Month Trailing Distribution Yield: at NAV refers to the 12-month historical cash flow paid over the past 12 months in dividends, divided by the past months ending NAV.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance, and does not include the effects of sales charges. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Information is subject to change and is not intended to represent any past or future investment recommendations.

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Style Analysis: The Morningstar Style Box reveals a fund's investment style. For equity funds the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend, or growth). For fixed-income funds, the vertical axis shows the credit quality of the bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by the following Nationally Recognized Statistical Rating Organizations (NRSROs): Moody's, Standard & Poor's, Fitch, and Egan-Jones. If two NRSROs have rated a security, fund companies are to report the lowest rating; if three or more NRSROs have rated the same security differently, fund companies are to report the rating that is in the middle. For example, if NRSRO X rates a security AA-, NRSRO Y rates the same security an A and NRSRO Z rates it a BBB+, the fund company should use the credit rating of 'A' in its reporting to Morningstar. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of "low", "medium", or "high" based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-"; medium are those less than "AA-", but greater or equal to "BBB-"; and high are those with a weighted-average credit quality of "AA-" or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar's analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years.

Please remember that an investment in a mutual fund involves risk. Investment return and principal value of a mutual fund investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

YTD Prices can be updated 3 to 4 hours after the Daily Pricing information which can result in mismatching data.

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