N-Q 1 inved_nq-mainpart93009.htm NQ-MAINPART
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
 

FORM N-Q
 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 

Investment Company Act file number 811-10431
 

Waddell & Reed InvestEd Portfolios

(Exact name of registrant as specified in charter)
 
 

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)
 
 

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)
 

Registrant's telephone number, including area code: 913-236-2000
 

Date of fiscal year end: December 31
 

Date of reporting period: September 30, 2009
 
 

ITEM 1. SCHEDULE OF INVESTMENTS.





SCHEDULE OF INVESTMENTS
 
InvestEd Growth Portfolio (in thousands)
 
SEPTEMBER 30, 2009 (UNAUDITED)
 

 

AFFILIATED MUTUAL FUNDS  
Shares
  
Value
  
Waddell & Reed Advisors Bond Fund,
      Class Y
 
 
919
 
 
$
5,633
 
Waddell & Reed Advisors Core Investment Fund,
      Class Y
3,736
 
 
 
17,934
 
Waddell & Reed Advisors Dividend Opportunities Fund,
      Class Y
 
 
471
 
 
 
5,769
 
Waddell & Reed Advisors Global Bond Fund,
      Class Y
2,940
 
 
 
11,260
 
Waddell & Reed Advisors High Income Fund,
      Class Y
 
 
901
 
 
 
5,911
 
Waddell & Reed Advisors International Growth Fund,
      Class Y
4,066
 
 
 
33,546
 
Waddell & Reed Advisors New Concepts Fund,
      Class Y
 
 
410
 
 
 
3,641
 
Waddell & Reed Advisors Small Cap Fund,
      Class Y
 
 
850
 
 
 
9,725
 
Waddell & Reed Advisors Value Fund,
      Class Y
1,588
 
 
 
15,804
 
Waddell & Reed Advisors Vanguard Fund,
      Class Y
1,323
 
 
 
9,222
 
 
 
 
 


 
TOTAL AFFILIATED MUTUAL FUNDS - 100.04%    
   
$
118,445
  
(Cost: $123,898)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHORT-TERM SECURITIES - 0.03%
Principal
    
 
Master Note    
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
 
      0.139%, 10-1-09 (A)
 
$
36
 
 
$
36
 
(Cost: $36)
 
 
 
 


 
 
 
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 100.07%    
   
$
118,481
  
(Cost: $123,934)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.07%)      
(84
)
 
 
 
 
 
 
 
 
 
NET ASSETS - 100.00%    
   
$
118,397
  
   
Notes to Schedule of Investments
 
Fair value is defined as the price that the Portfolio would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Portfolio's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Portfolio's investments by the above fair value hierarchy levels as of September 30, 2009:
 

 
Level 1
Level 2
Level 3
Assets
 
 
 
 
 
 
 
 
 
Investments in Securities
 
 
 
 
 
 
 
 
 
      Affiliated Mutual Funds
 
$
118,445
 
$
––
 
$
––
      Short-Term Securities    
––
   
36
   
––
            Total Investments in Securities    
118,445
   
36
   
––

 
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.
 





SCHEDULE OF INVESTMENTS
 
InvestEd Balanced Portfolio (in thousands)
 
SEPTEMBER 30, 2009 (UNAUDITED)
 

 

AFFILIATED MUTUAL FUNDS  
Shares
 
Value
 
Waddell & Reed Advisors Bond Fund,
      Class Y
 
 
694
 
 
$
4,256
 
Waddell & Reed Advisors Cash Management,
      Class A
4,147
 
 
 
4,147
 
Waddell & Reed Advisors Core Investment Fund,
      Class Y
2,257
 
 
 
10,833
 
Waddell & Reed Advisors Dividend Opportunities Fund,
      Class Y
 
 
356
 
 
 
4,357
 
Waddell & Reed Advisors Global Bond Fund,
      Class Y
1,111
 
 
 
4,254
 
Waddell & Reed Advisors Government Securities Fund,
      Class Y
 
 
2,969
 
 
 
16,861
 
Waddell & Reed Advisors High Income Fund,
      Class Y
 
 
681
 
 
 
4,466
 
Waddell & Reed Advisors International Growth Fund,
      Class Y
1,645
 
 
 
13,567
 
Waddell & Reed Advisors New Concepts Fund,
      Class Y
 
 
206
 
 
 
1,833
 
Waddell & Reed Advisors Value Fund,
      Class Y
 
 
922
 
 
 
9,177
 
Waddell & Reed Advisors Vanguard Fund,
      Class Y
1,999
 
 
 
13,933
 
 
 
 
 


 
TOTAL AFFILIATED MUTUAL FUNDS - 99.97%    
   
$
87,684
  
(Cost: $88,679)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHORT-TERM SECURITIES - 0.06%
Principal
    
 
Master Note    
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
 
      0.139%, 10-1-09 (A)
 
$
53
 
 
$
53
 
(Cost: $53)
 
 
 
 


 
 
 
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 100.03%    
   
$
87,737
 
(Cost: $88,732)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.03%)      
(28
)
 
 
 
 
 
 
 
 
 
NET ASSETS - 100.00%        
$
87,709
 
 
 
 
Notes to Schedule of Investments
 
Fair value is defined as the price that the Portfolio would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Portfolio's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Portfolio's investments by the above fair value hierarchy levels as of September 30, 2009:
 

 
Level 1
Level 2
Level 3
Assets
 
 
 
 
 
 
 
 
 
Investments in Securities
 
 
 
 
 
 
 
 
 
      Affiliated Mutual Funds
 
$
87,684
 
$
––
 
$
––
      Short-Term Securities    
––
   
53
   
––
            Total Investments in Securities    
87,684
   
53
   
––
 
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.
 





SCHEDULE OF INVESTMENTS
 
InvestEd Conservative Portfolio (in thousands)
 
SEPTEMBER 30, 2009 (UNAUDITED)
 

 

AFFILIATED MUTUAL FUNDS  
Shares
 
Value
 
Waddell & Reed Advisors Bond Fund,
      Class Y
 
 
902
 
 
$
5,528
 
Waddell & Reed Advisors Cash Management,
      Class A
5,403
 
 
 
5,403
 
Waddell & Reed Advisors Core Investment Fund,
      Class Y
4,888
 
 
 
23,464
 
Waddell & Reed Advisors Government Securities Fund,
      Class Y
3,846
 
 
 
21,846
 
 
 
 
 


 
TOTAL AFFILIATED MUTUAL FUNDS - 99.87%    
   
$
56,241
  
(Cost: $53,942)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHORT-TERM SECURITIES - 0.35%
Principal
   
 
Master Note    
 
 
Toyota Motor Credit Corporation,
 
 
 
 
 
 
      0.139%, 10-1-09 (A)
 
$
196
 
 
$
196
 
(Cost: $196)
 
 
 
 


 
 
 
 
 
 
 
 
 
 
TOTAL INVESTMENT SECURITIES - 100.22%    
   
$
56,437
  
(Cost: $54,138)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.22%)      
(125
)
 
 
 
 
 
 
 
 
 
NET ASSETS - 100.00%    
   
$
56,312
  
   
Notes to Schedule of Investments
 
Fair value is defined as the price that the Portfolio would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
 
Level 1 - unadjusted quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Portfolio's own assumptions in determining the fair value of investments)
 
The following table summarizes the valuation of the Portfolio's investments by the above fair value hierarchy levels as of September 30, 2009:
 
 
Level 1
Level 2
Level 3
Assets
 
 
 
 
 
 
 
 
Investments in Securities
 
 
 
 
 
 
 
 
      Affiliated Mutual Funds
 
$
56,241
$
––
 
$
––
      Short-Term Securities    
––
 
196
   
––
            Total Investments in Securities    
56,241
 
196
   
––
 
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.
 



 

ITEM 2. CONTROLS AND PROCEDURES.
   

(a)

The Registrant's Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant's management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
   

(b)

There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
 

ITEM 3. EXHIBITS.
   
 

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).
 

Attached hereto as Exhibit 99.CERT.
 
 

SIGNATURES
 
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 

Waddell & Reed InvestEd Portfolios

(Registrant)

   

By

 /s/Kristen A. Richards
 

Kristen A. Richards, Vice President and Assistant Secretary
 

Date: November 24, 2009
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   

By

 /s/Henry J. Herrmann
 

Henry J. Herrmann, Principal Executive Officer
 

Date: November 24, 2009
   

By

 /s/Joseph W. Kauten
 

Joseph W. Kauten, Principal Financial Officer
 

Date: November 24, 2009