Ivy Funds Suffers Another High-Level Manager Departure
With no explanation, Waddell & Reed fires the manager of a $12 billion fund.
Waddell & Reed Financial (WDR), advisor to the Ivy Funds, announced on July 9 that William Nelson, manager of the $12 billion Ivy High Income (WHIAX), was fired from the firm. The firm stated that Nelson's termination was unrelated to his portfolio management responsibilities but added little else. We most recently had rated this fund Neutral, but we now have moved our Morningstar Analyst Rating to Under Review.
The departure of another fixed-income manager leaves an already thinly resourced team stretched. Nelson, who joined Waddell & Reed in January 1995 and had managed sibling fund Waddell & Reed High Income (UNHIX) since 2008, only took the helm of Ivy High Income in November 2013 when then-manager Bryan Krug left the firm. Nelson has been replaced by Chad Gunther, an 11-year veteran at Waddell & Reed. He was previously an assistant manager of the fund. With the departure of two senior team members and no replacements, the firm's fixed-income resources are relatively small given its significant asset base.
Kathryn Spica, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.