Money manager Waddell & Reed reported a decline in first-quarter profits, owing to a rise in compensation, underwriting and distribution costs.Net income for the first quarter dropped to $22.8 million, or 28 cents a share, compared with $27.9 million, or 34 cents a share, a year earlier.

Waddell invests mainly in equities, which did poorly in the first quarter of the year. Net mutual fund sales totaled $157 million in the quarter and gross mutual fund sales were $1.2 billion.

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