Waddell Reed Financial Inc (WDR) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, December 31, 2013

Exhibit 99.1

News Release

Waddell & Reed Financial, Inc. Reports Fourth Quarter Results

Overland Park, KS, Feb. 4, 2014

Operating revenues of $375.0 million rose 8% sequentially and 24% compared to the same period last year.  At 30.2%, the operating margin compares favorably to the previous quarter’s 29.8% and 27.5% during the fourth quarter of 2012.  Continued margin expansion is the result of solid revenue growth and careful control of operating costs.

Assets under management were $127 billion at quarter-end, rising 11% since September 30 on a combination of strong market action and solid inflows across asset classes and distribution channels.  Sequentially, sales rose 37% and net flows resulted in an organic growth rate of 14%.  Compared to the end of last year, assets under management increased $30 billion, or 31%, of which $8.5 billion were new flows, representing organic growth of 9%.

Business Discussion

“Fourth quarter and full year results marked a number of new records for our firm,” said Hank Herrmann, Chairman and Chief Executive Officer of Waddell & Reed Financial, Inc.  “Net income, earnings per diluted share, operating revenues and operating income set new highs in 2013.  Sales and advisor productivity were at record levels while net flows were the second highest level ever.  Such successes are a testament to our people, our business model, the strength and effectiveness of our distribution network, and a significant suite of products with strong performance records.”

The Wholesale channel captured $6.1 billion of new sales, an 18% increase compared to the previous quarter and a 71% improvement compared to the same period last year.  Net flows of $2.8 billion represent an organic growth rate of 19%, significantly outpacing industry trends.

The Advisors channel remains a model of asset stability, maintaining an industry-low redemption rate and growing sales and productivity.  These characteristics provide steady and predictable sources of cash flow.

The Institutional channel benefited from a number of new allocations during the quarter resulting in sales of $1.9 billion.  While we do not expect to repeat this record level of business in the first quarter of 2014, the pipeline of opportunities is plentiful.

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