Waddell & Reed Financial, the Overland Park, Kan.-based mutual fund manager, announced today that its third quarter profits were down over 40% from last year. Profits from the third quarter of this year were $20.4 million, down from $34.5 million in 2000.
However, that decline includes a $5.1 million expense in the form of stock loans to financial advisors at the time of the firms initial public offering. Still, excluding that expense, the third quarter profit of $25.5 million is 26% less than the firms third quarter 2000 profit.
Waddel & Reed is the latest in a series of investment managers to announce declines for the third quarter. Merrill Lynch, T. Rowe Price, and Charles Schwab, have already made such announcements and more are expected to follow.
Neuberger Berman also announced modest declines for the third quarter today. Net income for all of Neuberger Bermans business was $33.47 million in the third quarter of this year, down 5% from 2000. The firm reported quarterly outflows of $176 million from mutual funds and sub-advised separate accounts.
"From the perspective of our business, the impact of the attack and its aftermath has been, and continues to be, an exacerbation of an already volatile and uncertain market," said Jeffrey Lane, Neuberger Bermans CEO, in a company statement.
The firm also announced today that it would acquire the assets of Oscar Capital Management , LLC, a firm that manages about $800 million for wealthy and institutional clients.