Waddell & Reed

Fund Detail

Waddell & Reed Advisors Small Cap Fund
Class A Shares

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Fund Facts
Ticker Symbol UNSAX
CUSIP 930057328
Fund Code 677
Fund Type Domestic Equity
Fund Inception 10/4/1999
Class Inception 10/4/1999
Fiscal Year End June
Dividends Paid December
Fund Assets (as of 1/31/2018) $958.5 mil
Total Equity Holdings (as of 1/31/2018) 80
Total Holdings (as of 1/31/2018) 88
Portfolio Turnover Rate (as of 6/30/2017) 53%
Lipper Category Small-Cap Growth Funds
Morningstar Category Small Growth
Benchmarks Russell 2000 Growth TR USD
Daily Prices
as of 2/23/2018
Net Asset Value (NAV) $16.39
NAV Change ($) $0.18
NAV Change (%) 1.11%
Weekly NAV Change ($) ($0.63)
Weekly NAV Change (%) -3.70%
Public Offering Price (POP) $17.39
Historical Prices & Distributions
Please select a date
Fund Description

Seeking small companies with large-cap opportunities


Sound philosophy
Seeks small-cap growth companies that are industry leaders, serving markets that are growing substantially and producing solid financial returns.
Experience & vision
Managed by an investment professional with more than 30 years of industry experience including roles as chief investment officer and head of growth funds group at a major investment firm.
Consistent process
Manager’s expertise is coupled with additional resources that have been associated with the firm’s small-cap growth products since 2003.
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 6/30/2018
  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
Russell 2000 Growth TR USD 9.70% 21.86% 10.60% 13.65% 11.24% 7.16%
Lipper Small-Cap Growth Funds 12.18% 24.57% 10.95% 12.90% 10.83% 8.67%
Quarterly Rates of Return
(Returns for periods of less than 1-yr are not annualized)
Average Annual Total Returns
as of 6/30/2018
  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
Russell 2000 Growth TR USD 9.70% 21.86% 10.60% 13.65% 11.24% 6.97%
Lipper Small-Cap Growth Funds 12.18% 24.57% 10.95% 12.90% 10.83% 8.46%
Expense Ratios
as of 10/31/2017
Net 1.38%
Gross 1.40%
Growth of a $10,000 Investment
through 1/31/2018
 Small Cap A
 Russell 2000 Growth 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: Small-Cap Growth Funds
  Rank Percentile
1 Year 242 / 553 44
3 Year 136 / 498 28
5 Year 145 / 453 32
10 Year 42 / 340 13

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

Morningstar Ratings
as of 1/31/2018
Category: Small Growth
Overall (out of 607 Small Growth)
3 Year (out of 607 Small Growth)
5 Year (out of 542 Small Growth)
10 Year (out of 407 Small Growth)

Ratings are based on risk-adjusted returns.

Holdings
Portfolio Composition
(as a % of net assets as of 1/31/2018)
Domestic Common Stock 95.07%
Cash and Cash Equivalents 3.46%
Foreign Common Stock 1.47%
Sector Allocation
(as a % of equity holdings as of 1/31/2018)
Information Technology 28.3%
Industrials 21.8%
Consumer Discretionary 17.8%
Health Care 16.4%
Financials 7.5%
Energy 4.3%
Materials 2.4%
Consumer Staples 0.9%
Real Estate 0.7%
Equity Country Allocation
(as a % of equity holdings as of 1/31/2018)
United States 97.7%
Netherlands 1.5%
Jersey 0.8%
Top 10 Equity Holdings
(as a % of net assets as of 1/31/2018)
U.S. health care staffing, recruitment and workforce solutions companyAMN Healthcare Services, Inc. 2.97%
Mercury Systems is a commercial provider of secure sensor and mission processing subsystems. Mercury’s solutions power a variety of critical defense and intelligence programs. Mercury Computer Systems, Inc. 2.40%
The Ultimate Software Group, Inc. (Ultimate) provides unified human capital management (HCM) software-as-a-service (SaaS) solutions for global businesses. Ultimate’s UltiPro software (UltiPro) is a SaaS-based solution designed to deliver the functionality needed to manage the employment life cycle.Ultimate Software Group, Inc. (The) 2.25%
Beacon Roofing Supply, Inc. distributes residential and non-residential roofing materials in the United States and Canada. The Company also distributes other complementary building materials, including siding, windows, specialty lumber products, and waterproofing systems for residential and non-residential building exteriors.Beacon Roofing Supply, Inc. 2.24%
Booz Allen Hamilton Holding Corp. provides management and technology consulting services to the U.S. government in the defense, intelligence, and civil markets. The Company offers economic and business analysis, information technology, intelligence and operations analysis, modeling and simulation, organization, and other consulting services.Booz Allen Hamilton Holding Corp. 2.13%
XPO Logistics, Inc. provides logistics services. The Company offers expedited airfreight forwarding, ground and ocean movement, warehousing management, order fulfillment, and reverse logistics. XPO Logistics serves customers throughout North America.XPO Logistics, Inc. 2.09%
Dycom Industries, Inc. is a leading provider of specialty contracting services to the dynamic telecommunications and infrastructure industry. Dycom Industries, Inc. 2.04%
John Bean Technologies Corp. designs, manufactures, tests and services systems and products for global industrial food processing customers through its FoodTech segment and for domestic and international air transportation customers through its AeroTech segment.John Bean Technologies Corp. 1.80%
HubSpot, Inc. provides a cloud-based marketing and sales software platform. The Company offers integrated applications that helps in lead generation and social marketing.HubSpot, Inc. 1.78%
Burlington Stores, Inc. is a apparel and home product retailer. Its products include ladies sportswear, menswear, coats, family footwear and youth apparel, as well as baby furniture, accessories, home decor and gifts. The company was founded in 2013 and is headquartered in Burlington, NJ.Burlington Stores, Inc. 1.76%
Total Portfolio Holdings
(updated quarterly, upon availability)

View | Download (as of 12/31/2017)
Top 10 Industry Allocation
(as a % of equity holdings as of 1/31/2018)
Application Software 12.4%
Health Care Equipment 7.5%
Regional Banks 5.9%
Industrial Machinery 5.7%
Health Care Services 5.2%
Internet Software & Services 4.7%
Semiconductors 4.4%
Restaurants 4.2%
Trading Companies & Distributors 4.0%
IT Consulting & Other Services 3.7%
Portfolio Management
Manager Name Company Name Years in Industry Years with Fund
Tim Miller is co-portfolio manager of the small cap growth product suite of mutual funds and institutional accounts. He has been portfolio manager of the Ivy Small Cap Growth Fund since 2010. He was appointed to the leadership role of the small cap growth team and assumed co-portfolio manager responsibilities of the small cap growth product suite in 2016. Mr. Miller joined the organization in 2008 as a vice president and portfolio manager. He held portfolio manager responsibilities for Ivy Small Cap Value Fund and Ivy VIP Small Cap Value from 2008 to 2010. He was appointed senior vice president in 2011. Prior to joining the firm, Mr. Miller managed his personal funds in a hedged equity style from 2004 to 2007. From 1992 through mid-2004, he was affiliated with INVESCO Funds Group, including serving four years as its chief investment officer, five years as head of the growth funds group, and from 1993-2004 as lead manager of the INVESCO Dynamics Fund. Early in Mr. Miller's career, he spent 13 years affiliated with Mississippi Valley Advisors in St. Louis, as assistant director of equity research and co-manager of a small cap value fund. Mr. Miller graduated from St. Louis University in 1979 with a BSBA in Finance. He earned an MBA from the University of Missouri/St. Louis in 1983. Mr. Miller is a CFA charterholder. He is a member of the CFA Institute, the Denver Society of Security Analysts and the CFA Society of Kansas City.Timothy J. Miller, CFA Waddell & Reed Investment Management Company 39 8
Ken McQuade is co-portfolio manager of the small cap growth product suite of mutual funds and institutional accounts. He has been portfolio manager of Ivy VIP Small Cap Growth since 2006. He was named co-portfolio manager of the small cap growth product suite in 2016. Mr. McQuade joined the organization in 1997 as an equity investment analyst. He was appointed assistant vice president in 2000. He assumed assistant portfolio manager responsibilities for small cap growth institutional accounts in 2003. He was appointed vice president in 2004 and senior vice president in 2016. Mr. McQuade earned a BS in Finance from Bradley University in 1992. Prior to joining the firm, he was affiliated with A.G. Edwards & Sons as a health care investment analyst.Kenneth G. McQuade Waddell & Reed Investment Management Company 22 1
Brad Halverson is co-portfolio manager of the small cap growth product suite of mutual funds and institutional accounts. He was named co-portfolio manager of the product suite in 2016. Mr. Halverson joined the organization in 2008 as an equity investment analyst on the Small Cap Growth team. He was appointed assistant vice president in 2013 and vice president in 2015. He was named assistant portfolio manager of small cap growth institutional accounts, serving in the role from 2014 to 2016. Prior to joining the firm, Mr. Halverson was associated with Northpointe Capital as an equity analyst responsible for researching growth stocks across micro, small, and mid cap portfolios. From 2002 to 2004 he was an associate in health care investment banking for A.G. Edwards & Sons, Inc. He was affiliated with Pricewaterhouse Coopers, LLP in positions of increasing responsibility from 1995 through 2000 culminating as a manager in business advisory services. Mr. Halverson graduated from Brigham Young University in 1995 with a BS and MS in Accounting. He earned an MBA with an emphasis in Finance and Corporate Strategy from the University of Michigan in 2002. Mr. Halverson is a CFA charterholder. He is a member of the CFA Institute. He is a former Certified Public Accountant (CPA).Bradley P. Halverson, CFA Waddell & Reed Investment Management Company 16 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: Russell 2000 Growth is an unmanaged index comprised of securities that represent the small cap sector of the stock market. 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 1.38%, Class B shares at 2.55%, Class C shares at 2.28%. 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.

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.

Effective April 1, 2010 Timothy Miller is primarily responsible for the day-to-day management of the Waddell & Reed Advisors Small Cap Fund.

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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