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Section 1: 10-Q (10-Q)

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Table of Contents


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                 to                                

Commission file number 001-13913

WADDELL & REED FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware

51-0261715

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

6300 Lamar Avenue

Overland Park, Kansas 66202

(Address, including zip code, of Registrant’s principal executive offices)

(913) 236-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, $.01 par value

WDR

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No .

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No .

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes  No .

Shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date:

Class

Outstanding as of October 23, 2020

Class A common stock, $.01 par value

62,547,588

Table of Contents

WADDELL & REED FINANCIAL, INC.

INDEX TO QUARTERLY REPORT ON FORM 10-Q

Quarter Ended September 30, 2020

    

Page No.

Part I.

Financial Information

Item 1.

Financial Statements (unaudited)

Consolidated Balance Sheets at September 30, 2020 and December 31, 2019

3

Consolidated Statements of Income for the three and nine months ended September 30, 2020 and September 30, 2019

4

Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2020 and September 30, 2019

5

Consolidated Statements of Stockholders’ Equity and Redeemable Noncontrolling Interests for the three and nine months ended September 30, 2020 and September 30, 2019

6

Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and September 30, 2019

7

Notes to the Unaudited Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

25

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

41

Item 4.

Controls and Procedures

41

Part II.

Other Information

Item 1A.

Risk Factors

42

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

43

Item 6.

Exhibits

44

Signatures

45

2

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

WADDELL & REED FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

September 30, 

2020

December 31, 

(Unaudited)

2019

Assets:

    

    

    

Cash and cash equivalents

$

165,259

 

151,815

Cash and cash equivalents - restricted

 

61,933

 

 

74,325

Investment securities

 

579,344

 

 

688,346

Receivables:

Funds and separate accounts

 

13,050

 

 

15,167

Customers and other

 

57,781

 

 

80,089

Prepaid expenses and other current assets

 

35,946

 

 

31,655

Total current assets

 

913,313

 

 

1,041,397

Property and equipment, net

 

27,213

 

 

34,726

Goodwill and identifiable intangible assets

 

145,869

 

 

145,869

Deferred income taxes

 

15,676

 

 

14,418

Other non-current assets

 

23,359

 

 

29,918

Total assets

$

1,125,430

 

1,266,328

Liabilities:

Accounts payable

$

17,509

 

20,123

Payable to investment companies for securities

 

17,443

 

 

36,883

Payable to third party brokers

 

16,559

 

 

17,123

Payable to customers

 

81,265

 

 

84,558

Short-term notes payable

94,980

Accrued compensation

 

65,896

 

 

79,507

Other current liabilities

 

56,515

 

 

71,001

Total current liabilities

 

350,167

 

 

309,195

Long-term debt

 

 

 

94,926

Accrued pension and postretirement costs

 

579

 

 

3,145

Other non-current liabilities

 

27,173

 

 

30,960

Total liabilities

 

377,919

 

 

438,226

Redeemable noncontrolling interests

19,205

Stockholders’ equity:

Preferred stock—$1.00 par value: 5,000 shares authorized; none issued

 

 

 

Class A Common stock—$0.01 par value: 250,000 shares authorized; 99,701 shares issued; 62,548 shares outstanding (68,847 at December 31, 2019)

 

997

 

 

997

Additional paid-in capital

 

296,220

 

 

312,693

Retained earnings

 

1,270,678

 

 

1,241,598

Cost of 37,153 common shares in treasury (30,854 at December 31, 2019)

 

(824,309)

 

 

(749,625)

Accumulated other comprehensive income

 

3,925

 

 

3,234

Total stockholders’ equity

 

747,511

 

 

808,897

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

$

1,125,430

 

1,266,328

See accompanying notes to the unaudited consolidated financial statements.

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WADDELL & REED FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited, in thousands, except for per share data)

For the three months ended September 30, 

For the nine months ended September 30, 

2020

2019

2020

2019

Revenues:

    

    

    

    

    

    

    

Investment management fees

$

106,617

 

111,806

$

307,660

 

334,438

Underwriting and distribution fees

 

139,456

 

135,787

400,032

 

395,527

Shareholder service fees

 

21,597

 

23,087

63,745

 

70,279

Total

 

267,670

 

270,680

771,437

 

800,244

Operating expenses:

Distribution

 

122,195

 

117,425

350,104

 

343,696

Compensation and benefits (including share-based compensation of $11,080, $11,580, $33,595, and $35,471 respectively)

 

62,416

 

64,999

182,704

 

191,718

General and administrative

 

19,156

 

16,680

58,278

 

47,421

Technology

14,250

15,019

41,989

47,769

Occupancy

4,160

5,684

13,160

19,100

Marketing and advertising

1,370

2,134

4,385

6,497

Depreciation

 

2,998

 

4,833

9,720

 

16,062

Subadvisory fees

 

3,490

 

3,882

10,444

 

11,154

Total

 

230,035

 

230,656

670,784

 

683,417

Operating income

 

37,635

 

40,024

100,653

 

116,827

Investment and other income

 

5,449

 

5,212

12,852

 

23,690

Interest expense

 

(1,542)

 

(1,562)

(4,630)

 

(4,662)

Income before provision for income taxes

 

41,542

 

43,674

108,875

 

135,855

Provision for income taxes

 

10,296

 

10,175

29,341

 

35,036

Net income

31,246

 

33,499

79,534

 

100,819

Net income attributable to redeemable noncontrolling interests

723

445

2,201

1,763

Net income attributable to Waddell & Reed Financial, Inc.

$

30,523

33,054

$

77,333

99,056

Net income per share attributable to Waddell and Reed Financial, Inc. common shareholders, basic and diluted:

$

0.48

0.46

$

1.18

1.33

Weighted average shares outstanding, basic and diluted:

 

64,240

72,387

65,795

74,446

See accompanying notes to the unaudited consolidated financial statements.

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WADDELL & REED FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited, in thousands)

    

For the three months ended September 30, 

For the nine months ended September 30, 

2020

    

2019

    

2020

    

2019

    

Net income

$

31,246

 

33,499

$

79,534

 

100,819

Other comprehensive (loss) income:

Unrealized (loss) gain on available for sale investment securities during the period, net of income tax (benefit) expense of $(161), $92, $274 and $1,011, respectively

 

(511)

 

 

296

 

842

 

 

3,235

Postretirement benefit, net of income tax benefit of $(16), $(30), $(50) and $(88), respectively

 

(51)

 

 

(94)

 

(151)

 

 

(283)

Comprehensive income

30,684

 

33,701

80,225

 

103,771

Comprehensive income attributable to redeemable noncontrolling interests

723

445

2,201

1,763

Comprehensive income attributable to Waddell & Reed Financial, Inc.

$

29,961

33,256

$

78,024

102,008

See accompanying notes to the unaudited consolidated financial statements.

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WADDELL & REED FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity and Redeemable Noncontrolling Interests

(Unaudited, in thousands)

For the three months ended September 30,

Accumulated

Redeemable

Additional

Other

Total 

Non

Common Stock

Paid-In

Retained

Treasury

Comprehensive

Stockholders’

Controlling

    

Shares

    

Amount

    

Capital

    

Earnings

    

Stock

    

Income (Loss)

    

Equity

    

Interests

Balance at June 30, 2019

 

99,701

$

997

 

294,487

 

1,227,314

 

(669,223)

 

3,081

 

856,656

 

15,115

Net income

 

 

 

 

33,054

 

 

 

33,054

 

445

Net subscription of redeemable noncontrolling interests in sponsored funds

1,353

Recognition of equity compensation

 

 

 

8,024

 

57

 

 

 

8,081

 

Net issuance/forfeiture of nonvested shares

 

 

 

627

 

 

(627)

 

 

 

Dividends accrued, $0.25 per share

 

 

 

 

(17,748)

 

 

(17,748)

Repurchase of common stock

 

(40,715)

 

(40,715)

 

Other comprehensive income

 

 

 

 

 

 

202

 

202

 

Balance at September 30, 2019

99,701

$

997

 

303,138

 

1,242,677

 

(710,565)

 

3,283

 

839,530

 

16,913

    

Balance at June 30, 2020

 

99,701

$

997

 

289,439

 

1,255,770

 

(783,990)

 

4,487

 

766,703

 

25,857

Net income

 

 

 

 

30,523

 

 

 

30,523

 

723

Net deconsolidation of redeemable noncontrolling interests in sponsored funds

(26,580)

Recognition of equity compensation

 

 

 

6,514

 

20

 

 

 

6,534

 

Net issuance/forfeiture of nonvested shares

 

 

 

267

 

 

(267)

 

 

 

Dividends accrued, $0.25 per share

 

 

 

 

(15,635)

 

 

(15,635)

Repurchase of common stock

 

(40,052)

 

(40,052)

 

Other comprehensive loss

 

 

 

 

 

 

(562)

 

(562)

 

Balance at September 30, 2020

99,701

$

997

 

296,220

 

1,270,678

 

(824,309)

 

3,925

 

747,511

 

For the nine months ended September 30,

Accumulated

Redeemable

Additional

Other

Total 

Non

Common Stock

Paid-In

Retained

Treasury

Comprehensive

Stockholders’

Controlling

    

Shares

    

Amount

    

Capital

    

Earnings

    

Stock

    

Income (Loss)

    

Equity

    

interest

Balance at December 31, 2018

 

99,701

$

997

 

311,264

 

1,198,445

 

(627,587)

 

331

 

883,450

 

11,463

Net income

 

 

 

 

99,056

 

 

 

99,056

 

1,763

Net subscription of redeemable noncontrolling interests in sponsored funds

3,687

Recognition of equity compensation

 

 

 

25,573

 

297

 

 

 

25,870

 

Net issuance/forfeiture of nonvested shares

 

 

 

(33,699)

 

 

33,699

 

 

 

Dividends accrued, $0.75 per share

 

 

 

 

(55,121)

 

 

(55,121)

Repurchase of common stock

 

(116,677)

 

(116,677)

 

Other comprehensive income

 

 

 

 

 

 

2,952

 

2,952

 

Balance at September 30, 2019

99,701

$

997

 

303,138

 

1,242,677

 

(710,565)

 

3,283

 

839,530

 

16,913

    

Balance at December 31, 2019

 

99,701

$

997

 

312,693

 

1,241,598

 

(749,625)

 

3,234

 

808,897

 

19,205

Net income

 

 

 

77,333

 

 

 

77,333

 

2,201

Net deconsolidation of redeemable noncontrolling interests in sponsored funds

(21,406)

Recognition of equity compensation

 

 

20,895

 

110

 

 

 

21,005

 

Net issuance/forfeiture of nonvested shares

(37,368)

37,368

Dividends accrued, $0.75 per share

 

 

 

(48,363)

 

 

 

(48,363)

 

Repurchase of common stock

 

 

 

 

(112,052)

 

 

(112,052)

 

Other comprehensive income

 

 

 

 

 

691

 

691

 

Balance at September 30, 2020

99,701

$

997

 

296,220

 

1,270,678

 

(824,309)

 

3,925

 

747,511

 

See accompanying notes to the unaudited consolidated financial statements.

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WADDELL & REED FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited, in thousands)

    

For the nine months ended September 30, 

2020

    

2019

    

Cash flows from operating activities:

Net income

$

79,534

 

100,819

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

 

9,368

 

 

16,057

Amortization of deferred sales commissions

 

1,180

 

 

1,492

Share-based compensation

 

33,595

 

 

35,471

Investments and derivatives loss (gain), net of collateral

 

1,688

 

 

(15,250)

Net purchases, maturities, and sales of trading and equity securities

 

22,468

 

 

(47,641)

Deferred income taxes

 

(1,480)

 

 

4,622

Net change in equity securities and trading debt securities held by consolidated sponsored funds

(10,886)

16,697

Other

(1,096)

1,273

Changes in assets and liabilities:

Customer and other receivables

 

3,801

 

 

70,220

Payable to investment companies for securities and payable to customers

 

(22,733)

 

 

(105,953)

Receivables from funds and separate accounts

 

2,117

 

 

3,360

Other assets

 

4,064

 

 

14,784

Accounts payable and payable to third party brokers

 

(6,383)

 

 

(10,243)

Other liabilities

 

(23,265)

 

 

(1,477)

Net cash provided by operating activities

$

91,972

 

 

84,231

Cash flows from investing activities:

Purchases of available for sale and equity method securities

(28,286)

(149,835)

Proceeds from sales of available for sale and equity method securities

 

3,257

 

 

19,667

Proceeds from maturities of available for sale securities

96,420

116,197

Proceeds from sale of property and equipment

2,262

Additions to property and equipment

 

(7,445)

 

 

(4,189)

Net cash provided by (used in) investing activities

$

66,208

 

 

(18,160)

Cash flows from financing activities:

Dividends paid

 

(49,939)

 

 

(56,560)

Repurchase of common stock

 

(112,865)

 

 

(118,668)

Net subscriptions (redemptions, distributions and deconsolidations) of redeemable noncontrolling interests in sponsored funds

5,807

3,687

Other

(131)

(168)

Net cash used in financing activities

$

(157,128)

 

 

(171,709)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

1,052

 

 

(105,638)

Cash, cash equivalents, and restricted cash at beginning of period

 

226,140

 

 

291,555

Cash, cash equivalents, and restricted cash at end of period

$

227,192

 

185,917

See accompanying notes to the unaudited consolidated financial statements.

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WADDELL & REED FINANCIAL, INC.

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.

Description of Business and Significant Accounting Policies

Waddell & Reed Financial, Inc. and Subsidiaries

Waddell & Reed Financial, Inc. (hereinafter referred to as the “Company,” “we,” “our” or “us”) is a holding company, incorporated in the state of Delaware in 1981, that conducts business through its subsidiaries. Founded in 1937, we are one of the oldest mutual fund complexes in the United States, having introduced the former Waddell & Reed Advisors group of mutual funds (the “Advisors Funds”) in 1940. Over time, we added additional mutual funds: Ivy Funds (the “Ivy Funds”); Ivy Variable Insurance Portfolios, our variable product offering (“Ivy VIP”); InvestEd Portfolios, our 529 college savings plan (“InvestEd”); and the Ivy High Income Opportunities Fund, a closed-end mutual fund (“IVH”) (collectively, Ivy Funds, Ivy VIP, InvestEd and IVH are referred to as the “Funds”).  In addition to the Funds, our assets under management (“AUM”) include institutional managed accounts.  As of September 30, 2020, we had $67.9 billion in AUM.

We derive our revenues from providing investment management and advisory services, investment product underwriting and distribution, and shareholder services administration to the Funds and institutional accounts. We also provide wealth management services, primarily to retail clients through Waddell & Reed, Inc. (“W&R”), and independent financial advisors associated with W&R (“Advisors”), who provide financial planning and advice to their clients. Investment management and advisory fees and certain underwriting and distribution revenues are based on the level of AUM and assets under administration (“AUA”) and are affected by sales levels, financial market conditions, redemptions and the composition of assets. Our underwriting and distribution revenues consist of fees earned on fee-based advisory programs, asset-based service and distribution fees promulgated under Rule 12b-1 of the Investment Company Act of 1940 (“Rule 12b-1”), distribution fees on certain variable products, and commissions derived from sales of investment and insurance products. The products sold have various commission structures and the revenues received from those sales vary based on the type and dollar amount sold. Shareholder service fee revenue includes transfer agency fees, custodian fees from retirement plan accounts, portfolio accounting and administration fees, and is earned based on client AUM or number of client accounts.  Our major expenses are for distribution of our products, compensation related costs, occupancy, general and administrative, and information technology.

The Company continues to proactively manage business continuity and safety considerations as circumstances of the coronavirus disease 2019 (“COVID-19”) evolve. Our leadership team’s priority is on ensuring the health and safety of all employees, clients, Advisors and communities, while also ensuring full continuity of service and access.  The Company started transitioning to a work from home environment early in March 2020 and has been following the Centers for Disease Control and Prevention and local authorities’ recommendations on safe practices throughout this process.  We have undertaken a number of steps to facilitate safety, security and full continuity of service, including:

Our Enterprise Preparedness Team and COVID-19 steering committee continue to meet regularly to assess developments and determine the best action to ensure business continuity and the safety of our employees and partners.
We have adopted interim business practices, including restricting business travel, requiring meetings to take place via remote access tools, adopting safety protocols to limit the potential for exposure, adopting social distancing practices, implementing a clearly-defined approval process for reentry to any worksite, advising personnel on preventive measures and offering remote collaboration and productivity tools and training resources to our employees.
We enhanced monitoring and capabilities of our systems to allow our remote workforce to function efficiently and have continued our educational and monitoring practices to ensure there are no compromises to confidentiality, privacy and cybersecurity requirements.
The Ivy investment management and distribution teams transitioned seamlessly to remote working.  Our teams have a strong heritage of active collaboration which has migrated to a virtual environment without compromise.

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Within our wealth management business, the majority of Advisors are working from temporary locations.  We are demonstrating our differentiated service and support model by continuing regular communications with Advisors as well as delivering additional advisor and client focused resources.

We have not initiated any layoffs, furloughs or reduced hours.  As we implemented our business continuity plans, we have intentionally maintained the same pay practices for all of our employees based upon their regular work schedule, paid spot bonuses to certain employees, implemented a temporary hourly wage increase to designated client services personnel, increased certain benefit coverages for specific COVID-19 related treatments through December and increased our philanthropic contributions to local organizations to help support the COVID-19 responses in our community.

Basis of Presentation

We have prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the SEC.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to enable a reasonable understanding of the information presented.  The information in this Quarterly Report on Form 10-Q should be read in conjunction with Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 (our “2019 Form 10-K”).  Certain amounts in the prior year’s financial statements have been reclassified for consistent presentation. Derivative activity was reclassified within operating activities on our consolidated statements of cash flows to provide a comprehensive view of the impact of the economic hedge program for our seed investment portfolio.

The accompanying unaudited consolidated financial statements are prepared consistent with the accounting policies described in Note 1 to the consolidated financial statements included in our 2019 Form 10-K with the exception of the adoption of Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment and ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, all of which became effective January 1, 2020. 

In our opinion, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting of only a normal and recurring nature) necessary to present fairly our financial position at September 30, 2020 and the results of operations and cash flows for the three and nine months ended September 30, 2020 and 2019 in conformity with accounting principles generally accepted in the United States.

Assets Held for Sale

Assets held for sale included real property related to our corporate headquarters move and aviation equipment.  The nine months ended September 30, 2020 included asset impairment charges of $0.9 million on assets held for sale, which were recorded in general and administrative expenses in our consolidated statements of income. During the third quarter of 2020, the aviation equipment was sold.  As of September 30, 2020, $3.8 million of buildings and $1.9 million of land that were held for sale were included in Property and equipment, net on our consolidated balance sheets.  As of December 31, 2019, $3.1 million of equipment, $3.8 million of buildings and $1.9 million of land that were held for sale were included in Property and equipment, net on our consolidated balance sheets.  The Company intends to actively pursue the sale of remaining assets held for sale at market prices as soon as reasonably possible.

Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract

As of September 30, 2020, the Company had $5.3 million of capitalized implementation costs for hosting arrangements with $215 thousand of accumulated amortization in prepaid and other current assets on the consolidated balance sheet. Our hosting arrangements that are service contracts include internal and external costs related to various technology additions in support of our asset management and wealth management businesses. Amortization costs are recorded on a straight-line basis over the term of the hosting arrangement agreement.

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2.

New Accounting Guidance

Accounting Guidance Not Yet Adopted

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies and improves the consistent application of the accounting for income taxes by removing certain exceptions to general principles and by clarifying and amending existing guidance.  This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We have concluded that the adoption of this ASU will have an immaterial impact on our consolidated financial statements and related disclosures.

3.

Revenue Recognition

All revenue recognized in the consolidated statements of income is considered to be revenue from contracts with customers. The vast majority of revenue is determined based on average assets and is earned daily or monthly or is transactional and is earned on the trade date. As such, revenue from remaining performance obligations is not significant.  The following table depicts the disaggregation of revenue by product and distribution channel:

Three months ended
September 30,

Nine months ended
September 30,

2020

2019

2020

2019

(in thousands)

(in thousands)

Investment management fees:

    

    

    

    

    

    

    

Funds

$

103,443

 

107,926

 

298,712

 

322,678

Institutional

 

3,174

 

3,880

 

8,948

 

11,760

Total investment management fees

$

106,617

 

111,806

 

307,660

 

334,438

Underwriting and distribution fees:

Unaffiliated

Service and distribution fees

$

14,623

16,286

43,569

49,366

Sales commissions

223

364

1,047

1,300

Other revenues

82

67

308

242

Total unaffiliated distribution fees

$

14,928

16,717

44,924

50,908

Wealth Management

Advisory fees

$

82,591

73,356

232,243

208,806

Service and distribution fees

15,305

16,143

43,494

47,589

Sales commissions

17,847

20,544

53,538

60,959

Other revenues

8,785

9,027

25,833

27,265

Total wealth management distribution fees

124,528

119,070

355,108

344,619

Total distribution fees

$

139,456

135,787

400,032

395,527

Shareholder service fees: