Waddell & Reed Financial reported Q3 2020 net income of $30.5 million ($0.48/share), improving from $24.8 million in Q2 but down from $33.1 million YoY. Revenue rose 11.5% from Q2 to $267.7 million, while AUM decreased slightly by 1% from Q3 2019 to $67.9 billion. Despite net outflows of $1.8 billion, the company experienced growth in Wealth Management AUA, reaching $62.7 billion, up 10%. Shareholder returns included $56.3 million in buybacks. CEO Philip J. Sanders emphasized ongoing improvements in wealth management and asset flows.
Waddell & Reed Financial, Inc. (NYSE: WDR) will announce its third quarter financial results on October 27, 2020. The announcement will occur before market opening, followed by a conference call at 10:00 a.m. Eastern Time to discuss the results and address investor inquiries. Participants are encouraged to pre-register for the call to receive dial-in instructions and a unique PIN. A replay of the call will be available for seven days post-event. More information and supplementary data will be posted on the company's Investor Relations website.
Waddell & Reed Financial reported preliminary assets under management of $67.9 billion for September 2020, down from $70.3 billion in August 2020. The decline is attributed to net outflows of ($624 million) and a negative market action of approximately ($1.8 billion). The company's preliminary data indicates a decrease in both retail and institutional assets, highlighting potential challenges in the current market environment.
Waddell & Reed has appointed Cory McCruden as Senior Vice President, Advisor & Client Experience, enhancing its wealth management leadership team. With over 20 years in the financial industry, McCruden aims to improve advisor and client experiences through innovative strategies, digital transformation, and increased loyalty.
She previously held key positions at Royal Bank of Canada, contributing to a 20% rise in client satisfaction. This leadership change is expected to bolster Waddell & Reed's commitment to a seamless client-centric culture as it navigates ongoing industry changes.