Top Waddell & Reed team bolts to form RIA

Waddell & Reed continues to lose reps and advisers. Most recently, a veteran, award-winning team in Northern California that produced $1.6 million in annual revenues bolted to start their own RIA. Elaine and Scott Manley both left Waddell & Reed on Aug. 16, according to records on BrokerCheck. Ms. Manley had been with the firm for 32 years, while Mr. Manley had worked at Waddell & Reed for 18 years. Ms. Manley this year won the firm's Seven C's award, which highlights an adviser's character, clients, camaraderie, competitiveness, commitment, convergence and creation. A Waddell & Reed adviser and a former employee, both of whom spoke anonymously, characterized the Manley team, which is based in San Jose, Calif., as one of the top offices at the firm. Ms. and Mr. Manley did not return phone calls to comment. A Waddell & Reed spokesman, Roger Hoadley, said that the Manley team was ranked No. 11 nationally. "Elaine and Scott Manley have recently decided the time was right for them to transition their practice," Mr. Hoadley said. "Our long association with the Manleys is testimony to both their and our belief in the value of financial planning and helping people achieve their long-term goals." The broker-dealer arm of parent Waddell & Reed Financial Inc., Waddell & Reed Financial Advisors, reported at the end of last month that it had continued to lose reps and advisers in the second quarter, although at a much slower pace than in the past. On a year-over-year basis, head count was down 28.5% through the end of June, and stood at 1,130. As InvestmentNews​ previously reported, the bulk of brokers and advisers leaving Waddell & Reed did in the second half of last year and mostly moved in response to increasing minimum production requirements. The Manley team, in contrast, was a leading group at the firm. The website for the Manleys' RIA, Financial Journey Partners, says it is opening later this week. Both Elaine and Scott Manley were registered with Mutual Advisors, an RIA, and Mutual Securities Inc., a broker-dealer. Fidelity Custody & Clearing is the custodian. "There was a strong cultural fit along with a like-mindedness around our open architecture approach to technology that would allow Elaine and Scott to better serve their clients while also focusing on the growth of their practice," said Aaron Jasper, CEO of Mutual Advisors and Mutual Securities. ​ This story was updated on Aug. 24 to add the last two paragraphs.