News
April 23, 2003
St. Paul, MN, April 24, 2003 — Securian Financial Group and its subsidiaries, Minnesota Life Insurance Company and Advantus Capital Management, today announced an alliance with Waddell & Reed Financial of Kansas City. Under the agreement, the companies will leverage and expand their respective product lines and distribution channels. The companies manufacture and market financial products and services nationwide through large networks of financial advisors.
Under the agreement, distribution will expand significantly for both firms. Beginning in mid-2004, Waddell & Reed will market through its network of 3,200 financial advisors a customized individual annuity manufactured by Minnesota Life. Minnesota Life will offer mutual funds managed by Waddell & Reed — including all Ivy funds and the W&R Target equity funds through its distribution systems, including its 1,800-member Securian Financial Network.
Expanding its share of the individual annuity market is a priority for Minnesota Life, which in the last 16 months created an annuity wholesaling unit, Minnesota Life Distributors, and introduced a new variable annuity, MultiOption Advisor. That effort already has boosted individual annuity sales 57 percent during the first quarter of 2003 over the same period last year. Sales are expected to further accelerate with access to the Waddell & Reed advisor network, which will nearly triple Minnesota Life annuity distribution.
"The combination of Waddell & Reed’s equity capabilities and Advantus’ fixed income capabilities creates a powerful investment line-up for all of Minnesota Life’s markets," said Robert L. Senkler, chairman, president, and chief executive officer. Minnesota Life manufactures and distributes retirement plans and variable life insurance and annuity products, all of which are expected to benefit from this powerful combination.
As a result of the agreement, which will take six months to implement, Advantus will exit the business of actively managing equities except real estate securities. Pending approval by shareholders and boards of directors, Advantus retail equity and fixed income mutual funds will be merged into existing or new Waddell & Reed Ivy retail mutual funds. The Advantus actively-managed equity series fund portfolios, except the real estate securities portfolio, will merge into Waddell & Reed’s Target funds. (A series fund is an investment option in a variable life insurance or annuity product.)
Advantus will continue to expand its management of fixed income and real estate products in its Advantus Series Fund and will become a subadvisor of Waddell & Reed’s Ivy mutual funds. Advantus also will continue to expand its institutional asset management business, including a successful investment advisory practice that provides portfolio management for life and property-casualty insurers. Advantus will continue to manage Minnesota Life’s general account, with Waddell & Reed subadvising the actively-managed equities in the account.
Minnesota Life provides financial security for individuals and businesses in the form of insurance, pensions and investments. Founded in 1880, Minnesota Life is highly rated by the major independent rating agencies that analyze the financial soundness and claims-paying ability of insurance companies. Minnesota Life serves seven million people with nearly $340 billion of life insurance in force and nearly $20 billion in assets under management. Its combined work force of 4,400 employees and representatives is located at its St. Paul headquarters and agencies and offices across the country.
Advantus Capital Management, an affiliate of Minnesota Life, offers a variety of investment products and services to institutional investors and individuals. Advantus also provides investment management expertise for insurance and pension products sold through the Securian Financial Network and Securian Retirement Services. For more complete information about Advantus Funds, including charges and expenses, request prospectuses from Advantus Capital Management, Inc. Advantus funds, including the variable insurance products that utilize the Advantus Series Fund are distributed through Securian Financial Services, Inc. member NASD/SIPC. 400 Robert Street North, St. Paul, MN 55101. 1-888-237-1838.
Through its subsidiaries, Waddell & Reed Financial provides investment management and financial planning services to clients throughout the United States. Waddell & Reed has approximately two million retail accounts and approximately $28 billion in mutual fund and institutional assets under management. Waddell & Reed distributes its funds primarily through 3,200 proprietary financial advisors operating from more than 225 offices nationwide. For more complete information regarding any of the mutual funds offered by Waddell & Reed, including fees and expenses, please obtain a prospectus from your financial advisor or online at www.waddell.com or www.ivyfunds.com. Please read all prospectuses carefully before investing.
Preceding press release obtained from Minnesota Life at www.minnesotamutual.com.
Berkshire Capital has reprinted this press release substantially in its entirety.
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