8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

June 23, 2005 (June 17, 2005)

WADDELL & REED FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-13913	51-0261715
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6300 Lamar Avenue

Overland Park, Kansas 66202

(Address of Principal Executive Offices) (Zip Code)

(913) 236-2000

(Registrant’s telephone number, including area code)

(Registrant’s Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 5.02:DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS

As announced on June 20, 2005, Michael L. Avery, age 51, was appointed Senior Vice President and Chief Investment Officer of Waddell & Reed Financial, Inc. (the "Company"), effective June 17, 2005.  Additionally, effective June 17, 2005, Mr. Avery was appointed Executive Vice President and Chief Investment Officer of Waddell & Reed Investment Management Company (“WRIMCO”) and Ivy Investment Management Company (“IICO”), two of the Company’s investment management subsidiaries.

Mr. Avery has been employed with the Company since June 1981.  Prior to being appointed to the above referenced offices, Mr. Avery served as Assistant Vice President of WRIMCO from 1985 to 1992, Vice President from 1992 to 1997, and Senior Vice President from January 1997 to June 2005.  He served as Senior Vice President of IICO from April 2003 to June 2005.

ITEM 8.01:OTHER EVENTS

The Company is furnishing the Securities and Exchange Commission with a copy of a press release issued by the Company on June 20, 2005, which is included herewith as Exhibit 99.1.

ITEM 9.01:FINANCIAL STATEMENT AND EXHIBITS

(c)Exhibits.

99.1Press Release dated June 20, 2005 titled “Waddell & Reed Appoints Michael Avery Chief Investment Officer” (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WADDELL & REED FINANCIAL, INC.
Date: June 23, 2005	By:	/s/ Daniel P. Connealy
		Senior Vice President and
		Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated June 20, 2005 titled “Waddell & Reed Appoints Michael Avery Chief Investment Officer” (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended).

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EX-99.1

Exhibit 99.1

News Release

Investor Contact:	Nicole McIntosh	Press Contact:	Roger Hoadley
	Investor Relations Manager		Communications Director
	(913) 236-1880		(913) 236-1993

Waddell & Reed Appoints Michael Avery Chief Investment Officer

Matthew Norris named Director of Equity Research

OVERLAND PARK, KS, June 20/PRNewswire/ — Waddell & Reed Financial, Inc., today announced that Michael L. Avery, a 24-year veteran of the Company’s investment management team, has been appointed Senior Vice President and Chief Investment Officer. He also was named Executive Vice President and Chief Investment Officer of Waddell & Reed Investment Management Company (“WRIMCO”) and Ivy Investment Management Company (“IICO”). Matthew T. Norris, a 13-year industry veteran and current portfolio manager, replaces Avery as director of equity research of WRIMCO and IICO.

“Mike is especially well-suited for the CIO position, having been intimately involved in our investment process for many years,” said Henry J. Herrmann, CEO of Waddell & Reed Financial, Inc. “His experience as both a portfolio manager and our research director positions him well to lead our investment management team. Matt has demonstrated a keen mind for equity research and will further complement our team in his new role. Our well-established investment process will remain in place and will benefit from the perspective of these two respected individuals.”

Herrmann remains chairman of the Company’s Investment Policy Committee, and has served as CIO since 1987, before being named CEO last month. Avery will remain a portfolio manager of the Waddell & Reed Advisors Asset Strategy Fund, the Ivy Asset Strategy Fund and the W&R Target Asset Strategy Fund. Norris will remain portfolio manager of the Company’s Value funds under the Advisors, Ivy and W&R Target banners.

As CIO, Avery will lead a team of more than 50 investment professionals, which currently includes 26 portfolio managers, 25 assistant portfolio managers and analysts, and three economists. Waddell & Reed had $38.1 billion in assets under management at March 31, 2005. Avery joined Waddell & Reed in 1981 and has been director of equity research since 1987. He became portfolio manager in 1997. From 1978-81, Avery served as an assistant investment officer for a St. Louis-based trust company. He holds an MBA from St. Louis University and a bachelor’s degree from the University of Missouri.

Norris joined Waddell & Reed in 2003 as a portfolio manager. Prior thereto, he served as a portfolio manager with Advantus Capital Management from 1997-2003, and an equity analyst and portfolio manager with Norwest Investment Management from 1994-97. He holds an MBA from the University of Nebraska and a bachelor’s degree from the University of Kansas.

In conjunction with the above changes, the Company announced that two research analysts have been promoted to assistant portfolio managers. Ryan Caldwell, who covers the financial industry as an analyst,

becomes assistant portfolio manager on all three Asset Strategy funds. Caldwell has seven years of experience and has been with Waddell & Reed for four years. Peter V. Morris, who covers a number of sectors including energy technology, machinery and coal, has been named assistant portfolio manager on the three Value funds. Morris has four years of industry experience and three with Waddell & Reed. Both retain their research analyst responsibilities.

Through its subsidiaries, Waddell & Reed Financial, Inc. provides investment management and financial planning services to clients throughout the United States. Waddell & Reed Investment Management Company serves as investment advisor to the Waddell & Reed Advisors Group of Mutual Funds, W&R Target Funds, Inc. and Waddell & Reed InvestEd Portfolios, Inc., while Ivy Investment Management Company serves as investment advisor to Ivy Funds, Inc. and the Ivy Funds portfolios.  Waddell & Reed, Inc. serves as principal underwriter and distributor to the Waddell & Reed Advisors Group of Mutual Funds, W&R Target Funds, Inc. and Waddell & Reed InvestEd Portfolios, Inc., while Ivy Funds Distributor, Inc. serves as principal underwriter and distributor to Ivy Funds, Inc. and the Ivy Funds portfolios.