<PAGE>
WADDELL & REED ADVISORS
INTERNATIONAL
GROWTH FUND,
INC.
ANNUAL
REPORT
-------------
June 30, 2000
<PAGE>
This report is submitted for the general information of the shareholders of
Waddell & Reed Advisors International Growth Fund, Inc. It is not authorized
for distribution to prospective investors in the Fund unless accompanied with or
preceded by the Waddell & Reed Advisors International Growth Fund, Inc. current
prospectus.
<PAGE>
MANAGER'S LETTER
JUNE 30, 2000
Dear Shareholder:
This report relates to the operation of the Waddell & Reed Advisors
International Growth Fund, Inc. for the fiscal year ended June 30, 2000. The
following discussion, graphs and tables provide you with information regarding
the Fund's performance during that period.
We have seen strong, global economic growth over the last year, due largely to
political reform and corporate restructuring around the world. Most emerging
economies have recovered to 1998 pre-crisis levels. European recoveries have
broadened and accelerated. Japan's progress remains very slow, but corporate
reform has begun. Despite continued moderate core inflation, most major central
banks have raised interest rates to help manage this rapid global growth. Some
modest economic slowing may now be occurring in the U.S., Canada and Great
Britain.
Early in 2000, global financial markets refocused on the dynamic technology
sector and the tremendous demand being created for new and innovative products.
This sector was responsible for much of the tremendous stock market gains seen
during the past fiscal year. In recent months, sector rotation has shifted
market attention back-and-forth between high-tech and basic industry, as
valuations and earnings have been scrutinized. Recently, a new wrinkle has
emerged in global financial markets: energy prices have increased, with the
duration and impact of the increase still in question.
Through most of this fiscal year, our focus has been in high-tech consumer and
business services, primarily in European markets. These selections produced
solid returns for the year, despite recent periods of volatility. Early in 2000
we took profit on some of our larger high-tech positions and broadened our
industry diversification. We expanded our exposure to domestic European markets
as those economies enjoyed stronger growth. Japanese exposure was reduced
slightly in response to increased political malaise and stalled reforms.
In managing this portfolio, we continue to focus on the broad, secular themes
that have been so dominating and profitable over the last few years. We believe
the combination of a broad, single European market and the changing global
technology scene still provides enormous opportunities for investment. We also
believe these broad themes should continue to flourish, but may be interrupted
periodically as financial markets raise concerns for higher global interest
rates and other obstacles, such as higher energy prices.
The strategies and techniques we have employed resulted in the Fund
significantly outperforming its benchmark indices over the last 12 months. The
Class A shares of the Fund's one-year return reached 31.41 percent, as
contrasted with the Lipper International Funds Universe Average (the index that
generally reflects the performance of the universe of funds with similar
investment objectives), with an annual return of 24.48 percent, and the Morgan
Stanley Capital International E.A.FE. Index (Europe, Australia, Far East - the
index that generally reflects the performance of the international securities
markets), at 17.16 percent. We continued to benefit from our significant
overweight position in high-tech consumer and business services, most notably in
Continental Europe and Sweden.
Later this calendar year we could see global economic growth slow slightly from
its current rapid pace, especially in the U.S., to a more moderate level that
could allow interest rates to flatten. By then we should have more evidence on
the outlook for global energy prices and their impact on global economies.
When these issues are no longer obstacles, foreign markets should refocus on the
positive, long-term themes of reform and restructuring. We believe that, longer
term, healthy economic growth and moderate inflation should continue to provide
an ideal atmosphere for global investing.
We intend to maintain our current defensive posture until we have clear signs
regarding the extent of higher global interest rates and cost pressures from
high energy prices. As always, we will closely monitor global developments and
attempt to respond quickly to any change in investment opportunities. Thank you
for the opportunity to serve your investment needs and for your ongoing
commitment to the Waddell & Reed Advisors International Growth Fund.
Sincerely,
Thomas Mengel
Manager, Waddell & Reed Advisors International Growth Fund, Inc.
<PAGE>
Comparison of Change in Value of $10,000 Investment in
Waddell & Reed Advisors International Growth Fund, Inc., Class A Shares,
The Morgan Stanley Capital International E.A.FE. Index (with net dividends)
and The Lipper International Funds Universe Average
Waddell &
Reed Morgan
Advisors Stanley
Inter- Capital Lipper
national Inter- International
Growth national Funds
Fund, E.A.FE. Universe
Class A Index Average
--------- --------- ----------
06/30/90 Purchase $9,425 $10,000 $10,000
06/30/91 8,435 8,847 8,999
06/30/92 10,257 8,789 9,881
06/30/93 10,525 10,572 10,666
06/30/94 14,032 12,369 12,987
06/30/95 15,152 12,574 13,140
06/30/96 16,925 14,244 15,182
06/30/97 20,823 16,072 17,644
06/30/98 28,004 17,052 19,039
06/30/99 26,494 18,351 19,965
06/30/00 36,940 21,500 24,946
===== Waddell & Reed Advisors International Growth Fund, Inc., Class A Shares* -
- $36,940
+++++ Morgan Stanley Capital International E.A.F.E. Index -- $21,500
---- Lipper International Fund Universe Average -- $24,946
*The value of the investment in the Fund is impacted by the sales load at the
time of the investment and by the ongoing expenses of the Fund.
Average Annual Total Return+
Class A Class B Class C Class Y
----------------------------------------------
Year Ended
6/30/00 31.41% N/A N/A 39.97%
5 Years Ended
6/30/00 18.10% N/A N/A N/A
10 Years Ended
6/30/00 13.96% N/A N/A N/A
Since inception of
Class++ through
6/30/00 N/A 22.70% 27.02% 19.44%
+Performance data quoted represents past performance and is based on deduction
of the maximum applicable sales load for each of the periods. Class A shares
carry a maximum front-end sales load of 5.75%. Class B and Class C shares
carry maximum contingent deferred sales charges of 5% and 1%, respectively.
Total returns reflect share price appreciation, including reinvestment of all
income and capital gains distributions. Investment return and principal value
will fluctuate and an investor's shares, when redeemed, may be worth more or
less than their original cost.
++10/4/99 for Class B shares, 10/5/99 for Class C shares and 9/27/95 for Class Y
shares (the date on which shares were first acquired by shareholders).
Past performance is not predictive of future performance. Indexes are
unmanaged.
<PAGE>
SHAREHOLDER SUMMARY
-----------------------------------------------------------------
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
PORTFOLIO STRATEGY:
Normally at least 80% in GOALS: To seek, as a primary
foreign securities. Not goal, long-term
more than 75% in securities appreciation of capital.
in any one country. As a secondary goal, the
Fund seeks current income.
STRATEGY: Invests primarily in
common stocks of foreign
companies that the Fund's
investment manager believes have the
potential for long-term
growth represented by
economic expansion within
a country or region and by
the restructuring and/or
privatization of
particular industries.
FOUNDED: 1970
SCHEDULED DIVIDEND FREQUENCY: SEMIANNUALLY (June and
December)
PERFORMANCE SUMMARY - Class A Shares
PER SHARE DATA
For the Fiscal Year Ended June 30, 2000
---------------------------------------
DIVIDEND PAID $0.02
=====
CAPITAL GAINS DISTRIBUTION $1.44
=====
NET ASSET VALUE ON
6/30/00 $12.43 adjusted to: $13.87(A)
6/30/99 9.97
------
CHANGE PER SHARE $3.90
======
(A)This number includes the capital gains distribution of $1.44 paid in December
1999 added to the actual net asset value on June 30, 2000.
Past performance is not necessarily indicative of future results.
TOTAL RETURN HISTORY
Average Annual Total Return
---------------------------
With Without
Period Sales Load* Sales Load**
------ ----------- ------------
1-year period ended 6-30-00 31.41% 39.43%
5-year period ended 6-30-00 18.10% 19.51%
10-year period ended 6-30-00 13.96% 14.64%
*Performance data quoted represents past performance and is based on deduction
of 5.75% sales load on the initial purchase in each of the three periods.
**Performance data quoted in this column represents past performance without
taking into account the sales load deducted on an initial purchase.
Investment return and principal value will fluctuate and an investor's shares,
when redeemed, may be worth more or less than their original cost.
<PAGE>
PORTFOLIO HIGHLIGHTS
On June 30, 2000, Waddell & Reed Advisors International Growth Fund, Inc. had
net assets totaling $1,755,132,811 invested in a diversified portfolio of:
75.11% Common Stocks
18.77% Cash and Cash Equivalents
6.12% Preferred Stocks
As a shareholder of Waddell & Reed Advisors International Growth Fund, Inc., for
every $100 you had invested on June 30, 2000, your Fund was invested by
geographic region and by industry, respectively, as follows:
$56.22 Europe
18.77 Cash and Cash Equivalents
11.98 Pacific Basin
5.50 Canada
3.10 Scandinavia
3.02 United States
1.41 Other Regions
$23.06 Manufacturing
18.77 Cash and Cash Equivalents
14.36 Finance, Insurance and Real Estate
Contracts
12.05 Transportation, Communication, Electric,
Gas and Sanitary Services
10.49 Services
8.31 Miscellaneous Investing Institutions
4.92 Contract Construction
4.68 Mining
3.36 Wholesale and Retail Trade
<PAGE>
THE INVESTMENTS OF
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
JUNE 30, 2000
Shares Value
COMMON STOCKS
Canada - 5.50%
AT&T Canada Inc.* ...................... 329,000 $ 10,898,125
AT&T Canada Inc., Class B* ............. 200,000 6,690,998
Nortel Networks Corporation ............ 782,000 53,371,500
Research In Motion Limited* ............ 160,000 7,235,000
Rogers Communications Inc., Class B* ... 447,100 12,676,294
724 Solutions Inc.* .................... 130,000 5,679,375
Total ................................. 96,551,292
China - 0.84%
China Unicom Limited* ..................6,960,000 14,685,804
Finland - 2.19%
Nokia Oyj .............................. 755,000 38,506,503
France - 8.94%
AXA-UAP ................................ 143,300 22,561,582
Alcatel ................................ 298,500 19,567,732
Bouygues S.A. .......................... 32,000 21,374,080
Credit Lyonnais SA ..................... 400,000 19,007,664
Lagardere SCA .......................... 282,206 21,542,477
Suez Lyonnaise des Eaux ................ 180,050 31,525,981
TOTAL FINA ELF, S.A. ................... 138,500 21,224,366
Total ................................. 156,803,882
Germany - 5.21%
EM.TV & Merchandising AG ............... 200,000 11,774,828
freenet.de AG* ......................... 77,500 6,359,743
Heyde AG* .............................. 150,000 23,330,190
Intershop Communications GmbH* ......... 20,000 9,026,732
Siemens AG ............................. 147,000 22,092,116
Singulus Technologies AG* .............. 319,500 18,901,748
Total ................................. 91,485,357
Hong Kong - 1.74%
China Telecom (Hong Kong) Limited* .....3,000,000 26,455,535
Chinadotcom Corporation, Class A* ...... 200,000 4,081,250
Total ................................. 30,536,785
Ireland - 1.10%
Bank of Ireland (The) ..................1,360,450 8,502,826
CRH public limited company ............. 600,000 10,849,254
Total ................................. 19,352,080
See Notes to Schedule of Investments on page 17.
<PAGE>
THE INVESTMENTS OF
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
JUNE 30, 2000
Shares Value
COMMON STOCKS(Continued)
Israel - 0.46%
Partner Communications, ADR* ........... 850,100 $ 8,022,819
Italy - 6.97%
Assicurazioni Gernerali S.p.A. ......... 691,950 23,703,287
AutosTrade S.p.A. ......................2,085,500 15,601,475
Banca Intesa S.p.A. ....................2,778,400 12,433,890
Finmeccanica S.p.A. (A)* ...............5,100,000 7,007,645
RAS S.p.A. .............................2,000,000 21,946,600
Saipem S.p.A. ..........................3,000,000 17,748,120
UniCredito Italiano SpA ................5,000,000 23,902,710
Total ................................. 122,343,727
Japan - 8.07%
Benesse Corporation .................... 90,900 6,295,251
Fast Retailing Co., Ltd. ............... 30,000 12,550,645
FUJITSU LIMITED ........................ 600,000 20,748,139
Kyocera Corporation .................... 125,000 21,188,637
Nippon Telegraph and Telephone Corporation 2,000 26,571,186
SECOM Co., Ltd. ........................ 200,000 14,604,730
SOFTBANK CORP. ......................... 50,600 6,865,542
Sony Corporation ....................... 150,000 13,992,274
Taiyo Yuden Co., Ltd. .................. 300,000 18,769,434
Total ................................. 141,585,838
Korea - 1.33%
Samsung Electronics .................... 70,700 23,397,054
Netherlands - 8.70%
EQUANT N.V.* ........................... 420,000 17,056,516
ING Groep N.V. .......................... 265,273 17,921,144
Koninklijke Ahold N.V. ................. 450,000 13,238,094
Koninklijke KPN N.V. ................... 200,000 8,940,854
Koninklijke Philips Electronics N.V.,
Ordinary Shares ....................... 820,006 38,653,017
QIAGEN N.V.* ........................... 120,000 20,839,728
Royal Dutch Petroleum Company .......... 354,200 22,002,344
United Pan-Europe Communications N.V.* . 537,000 14,034,784
Total ................................. 152,686,481
Spain -3.60%
BANCO BILBAO VIZCAYA, S.A.* ............ 696,000 10,393,528
BANCO SANTANDER CENTRAL HISPANO S.A. ...1,805,000 19,031,758
Red Electrica de Espana ................ 700,100 8,016,425
Repsol-YPF, S.A. ....................... 987,500 19,646,382
Tele Pizza, S.A.* ......................1,074,930 6,051,619
Total ................................. 63,139,712
See Notes to Schedule of Investments on page 17.
<PAGE>
THE INVESTMENTS OF
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
JUNE 30, 2000
Shares Value
COMMON STOCKS (Continued)
Sweden - 0.91%
Framtidsfabriken AB* ................... 177,550 $ 2,445,537
Telia Ab (A)* ..........................1,444,600 13,592,613
Total ................................. 16,038,150
Switzerland - 3.54%
Charles Vogele Holding AG .............. 50,000 9,838,176
Ciba Specialty Chemicals ............... 200,000 12,443,300
Clariant Limited, Registered Shares .... 53,021 19,695,186
Givaudan SA* ........................... 2,000 608,680
Roche Holdings AG ...................... 2,000 19,467,942
Total ................................. 62,053,284
United Kingdom - 12.99%
Capita Group plc (The) .................1,057,475 25,873,058
Carlton Communications, PLC ............ 780,000 10,031,853
COLT Telecom Group plc* ................ 572,000 19,040,850
Diageo plc .............................2,500,000 22,431,707
Energis plc* ........................... 211,575 7,932,924
GKN plc ................................ 834,350 10,642,496
Independent Energy Holdings plc, ADR* .. 475,000 3,963,281
Invensys plc ...........................4,332,800 16,258,780
Kingfisher plc .........................1,151,525 10,480,370
Lloyds TSB Group plc ...................2,000,000 18,883,488
Pearson plc ............................ 310,000 9,850,281
Reckitt Benckiser plc ..................2,200,000 24,633,268
Reed International P.L.C. ..............1,282,000 11,153,817
Reuters Group PLC ...................... 402,000 6,855,160
Sage Group plc (The) ...................1,165,186 9,432,280
Sema Group plc ......................... 630,080 8,961,716
SmithKline Beecham plc ................. 884,200 11,572,688
Total ................................. 227,998,017
United States - 3.02%
Global TeleSystems Group, Inc.* ........ 900,000 10,856,250
Pharmacia Corporation .................. 340,600 17,604,762
Schlumberger Limited ................... 150,000 11,193,750
Transocean Sedco Forex Inc. ............ 250,000 13,359,375
Total ................................. 53,014,137
TOTAL COMMON STOCKS - 75.11% $1,318,200,922
(Cost: $1,136,214,824)
See Notes to Schedule of Investments on page 17.
<PAGE>
THE INVESTMENTS OF
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
JUNE 30, 2000
Shares Value
PREFERRED STOCKS
Brazil - 0.95%
Petroleo Brasileiro S.A. - Petrobras ... 555,000 $ 16,771,555
Germany - 5.17%
MLP AG ................................. 162,240 81,120,130
Rhoen-Klinikum AG ...................... 215,100 9,544,052
Total ................................. 90,664,182
TOTAL PREFERRED STOCKS - 6.12% $107,435,737
(Cost: $22,037,915)
Principal
Amount in
Thousands
SHORT-TERM SECURITIES
Commercial Paper
Apparel and Accessory Stores - 0.27%
Limited Inc. (The),
6.62%, 7-12-00 ........................ $ 4,700 4,690,493
Communication - 0.85%
Bell Atlantic Network Funding Corp.,
6.52%, 7-5-00 ......................... 15,000 14,989,133
Depository Institutions - 6.00%
Banc One Financial Corp. (Bank One Corporation):
6.55%, 7-7-00 ......................... 13,700 13,685,044
6.58%, 7-7-00 ......................... 2,700 2,697,039
Baus Funding LLC (Bank Austria),
6.8%, 7-7-00 .......................... 20,000 19,977,334
Dresdner U.S. Finance Inc.,
6.58%, 7-10-00 ........................ 14,000 13,976,970
Rabobank Nederland,
6.52%, 7-5-00 ......................... 25,000 24,981,889
Societe Generale N.A. Inc.,
6.52%, 7-10-00 ........................ 30,000 29,951,100
Total ................................. 105,269,376
Electric, Gas and Sanitary Services - 2.91%
Carolina Power & Light Co.,
6.55%, 7-5-00 ......................... 22,000 21,983,989
Oge Energy Corp.,
7.02%, 7-5-00 ......................... 5,600 5,595,632
PS Colorado Credit Corp.,
6.9%, 7-10-00 ......................... 9,945 9,927,845
Public Service Electric & Gas Co.,
7.0%, 7-26-00 ......................... 3,700 3,682,014
Puget Sound Energy Inc.,
6.87%, 7-24-00 ........................ 4,000 3,982,443
See Notes to Schedule of Investments on page 17.
<PAGE>
THE INVESTMENTS OF
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
JUNE 30, 2000
Principal
Amount in
Thousands Value
SHORT-TERM SECURITIES (Continued)
Commercial Paper (Continued)
Electric, Gas and Sanitary Services (Continued)
Questar Corp.,
6.57%, 7-14-00 ........................ $ 6,000 $ 5,985,765
Total ................................. 51,157,688
Electronic and Other Electric Equipment - 1.14%
Sony Capital Corp.,
6.75%, 7-6-00 ......................... 10,000 9,990,625
Whirlpool Corp.,
6.75%, 7-19-00 ........................ 10,000 9,966,250
Total ................................. 19,956,875
Fabricated Metal Products - 0.07%
Danaher Corporation,
6.6738%, Master Note .................. 1,241 1,241,000
Food Stores - 1.81%
Albertson's Inc.,
6.55%, 7-7-00 ......................... 31,725 31,690,367
Nondepository Institutions - 1.00%
General Electric Capital Corporation,
6.6%, 7-12-00 ......................... 14,990 14,959,770
Island Finance Puerto Rico Inc.,
6.8%, 8-7-00 .......................... 2,700 2,681,130
Total ................................. 17,640,900
Personal Services - 0.85%
Block Financial Corp.,
6.6%, 7-12-00 ......................... 15,000 14,969,750
Printing and Publishing - 1.01%
Tribune Co.,
6.65%, 8-3-00 ......................... 17,770 17,661,677
Total Commercial Paper - 15.91% 279,267,259
Commercial Paper (backed by irrevocable bank
letter of credit) - 0.75%
Nondepository Institutions
Agway Financial Corp. (Rabobank Nederland),
6.5%, 7-11-00 ......................... 9,250 9,233,299
ED&F Man Finance Inc. (Rabobank Nederland),
6.58%, 7-24-00 ........................ 3,925 3,916,404
Total ................................. 13,149,703
See Notes to Schedule of Investments on page 17.
<PAGE>
THE INVESTMENTS OF
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
JUNE 30, 2000
Value
TOTAL SHORT-TERM SECURITIES - 16.66% $ 292,416,962
(Cost: $292,416,962)
TOTAL INVESTMENT SECURITIES - 97.89% $1,718,053,621
(Cost: $1,450,669,701)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.11% 37,079,190
NET ASSETS - 100.00% $1,755,132,811
Notes to Schedule of Investments
*No dividends were paid during the preceding 12 months.
(A) Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At June 30, 2000, the value of these
securities amounted to $20,600,258 or 1.17% of net assets.
See Note 1 to financial statements for security valuation and other significant
accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and
depreciation of investments owned for Federal income tax purposes.
<PAGE>
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(In Thousands)
Assets
Investment securities -- at value (Notes 1 and 3) $1,718,054
Cash ........................................... 1
Receivables:
Investment securities sold ..................... 28,040
Fund shares sold ............................... 9,456
Dividends and interest ......................... 2,909
Prepaid insurance premium ........................ 18
----------
Total assets ................................. 1,758,478
----------
Liabilities
Payable to Fund shareholders ............ ........ 2,261
Accrued service fee (Note 2) .................... 308
Accrued transfer agency and dividend
disbursing (Note 2) ............................ 305
Accrued distribution fee (Note 2) ............... 58
Accrued management fee (Note 2) ................. 41
Accrued accounting services fee (Note 2) ........ 8
Accrued shareholder servicing - Class Y (Note 2) 3
Other ........................................... 361
----------
Total liabilities ............................ 3,345
----------
Total net assets ............................ $1,755,133
==========
Net Assets
$1.00 par value capital stock:
Capital stock .................................. $ 141,183
Additional paid-in capital ..................... 1,024,315
Accumulated undistributed income (loss):
Accumulated undistributed net realized gain on
investment transactions ...................... 322,311
Net unrealized appreciation in value
of investments ............................... 267,384
Net unrealized depreciation in value of foreign
currency exchange ............................ (60)
----------
Net assets applicable to outstanding
units of capital ............................ $1,755,133
==========
Net asset value per share (net assets divided
by shares outstanding):
Class A ......................................... $12.43
Class B .......................................... $12.34
Class C ......................................... $12.36
Class Y ......................................... $12.46
Capital shares outstanding:
Class A ......................................... 137,756
Class B .......................................... 1,565
Class C ......................................... 238
Class Y ......................................... 1,624
Capital shares authorized ......................... 400,000
See notes to financial statements.
<PAGE>
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF OPERATIONS
For the Fiscal Year Ended JUNE 30, 2000
(In Thousands)
Investment Loss
Income (Note 1B):
Dividends (net of foreign withholding
taxes of $567) ................................ $ 10,633
Interest and amortization ....................... 7,394
--------
Total income .................................. 18,027
--------
Expenses (Note 2):
Investment management fee ....................... 13,793
Service fees:
Class A ...................................... 3,724
Class B ...................................... 16
Class C ...................................... 2
Transfer agency and dividend
disbursing:
Class A ...................................... 3,253
Class B ...................................... 48
Class C ...................................... 5
Custodian fees .................................. 1,550
Distribution fee:
Class A ...................................... 280
Class B ...................................... 48
Class C ...................................... 7
Accounting services fee ......................... 100
Shareholder servicing - Class Y ................. 26
Audit fees ...................................... 19
Legal fees ...................................... 15
Other ........................................... 279
--------
Total expenses ................................ 23,165
--------
Net investment loss ......................... (5,138)
--------
Realized and Unrealized Gain (Loss) on
Investments (Notes 1 and 3)
Realized net gain on securities .................. 420,386
Realized net gain on forward currency contracts .. 339
Realized net loss on foreign currency
transactions .................................... (788)
--------
Realized net gain on investments ................ 419,937
--------
Unrealized appreciation in value of securities
during the period................................ 76,553
Unrealized depreciation on open forward currency
contracts during the period ..................... (339)
Unrealized appreciation in value of foreign
currency exchange during the period ............. 72
--------
Unrealized appreciation on investments .......... 76,286
--------
Net gain on investments ....................... 496,223
--------
Net increase in net assets resulting from
operations ................................. $491,085
========
See notes to financial statements.
<PAGE>
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
(In Thousands)
For the fiscal year ended
June 30,
-------------------------
2000 1999
Increase (Decrease) in Net Assets ------------ ------------
Operations:
Net investment income (loss) ........ $ (5,138) $ 6,375
Realized net gain on investments .... 419,937 111,905
Unrealized appreciation
(depreciation) .................... 76,286 (182,732)
---------- ----------
Net increase (decrease) in net assets
resulting from operations ........ 491,085 (64,452)
---------- ----------
Distributions to shareholders from (Note 1F):*
Net investment income:
Class A ........................... (2,768) (5,120)
Class B ........................... --- ---
Class C ........................... --- ---
Class Y ........................... (52) (68)
Realized gains on securities transactions:
Class A ........................... (173,437) (125,603)
Class B ........................... (271) ---
Class C ........................... (41) ---
Class Y ........................... (1,742) (852)
---------- ----------
(178,311) (131,643)
---------- ----------
Capital share transactions (Note 5) .. 180,989 117,162
---------- ----------
Total increase (decrease) ...... 493,763 (78,933)
Net Assets
Beginning of period .................. 1,261,370 1,340,303
---------- ----------
End of period ........................ $1,755,133 $1,261,370
========== ==========
Undistributed net investment
income (loss) ..................... $--- 2,452
======= ======
*See "Financial Highlights" on pages 23 - 26.
See notes to financial statements.
<PAGE>
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
Class A Shares
For a Share of Capital Stock Outstanding
Throughout Each Period:
For the fiscal year ended June 30,
----------------------------------
2000 1999 1998 1997 1996
------ ------ ------ ------ ------
Net asset value,
beginning of
period ........... $9.97 $11.85 $10.61 $8.95 $8.68
------ ------ ------ ------ -----
Income from investment
operations:
Net investment
income (loss) ... (.04) .05 .07 .07 .08
Net realized and
unrealized gain
(loss) on
investments ..... 3.96 (0.74) 3.01 1.94 .86
------ ------ ------ ------ -----
Total from investment
operations ...... 3.92 (0.69) 3.08 2.01 .94
------ ------ ------ ------ -----
Less distributions:
From net investment
income .......... (.02) (0.04) (0.06) (0.09) (0.07)
From capital gains (1.44) (1.15) (1.78) (0.26) (0.60)
------ ------ ------ ------ -----
Total distributions (1.46) (1.19) (1.84) (0.35) (0.67)
------ ------ ------ ------ -----
Net asset value,
end of period .... $12.43 $9.97 $11.85 $10.61 $8.95
====== ====== ====== ====== =====
Total return* ...... 39.43% -5.40% 34.49% 23.03% 11.70%
Net assets, end of
period (in
millions) ........ $1,713 $1,252 $1,331 $978 $771
Ratio of expenses
to average net
assets ........... 1.41% 1.30% 1.23% 1.28% 1.25%
Ratio of net
investment income
(loss) to average
net assets ....... -0.32% 0.52% 0.67% 0.78% 0.89%
Portfolio turnover
rate ............. 112.68%149.45% 114.34%109.71% 58.64%
*Total return calculated without taking into account the sales load deducted on
an initial purchase.
See notes to financial statements.
<PAGE>
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
Class B Shares
For a Share of Capital Stock Outstanding
Throughout The Period:
For the
period
from
10/4/99*
through
6/30/00
-------
Net asset value,
beginning of period $10.79
-----
Income from investment
operations:
Net investment loss (0.00)
Net realized and
unrealized gain
on investments .. 2.99
-----
Total from investment
operations ....... 2.99
-----
Less distributions:
From net investment
income .......... (0.00)
From capital gains (1.44)
-----
Total distributions (1.44)
-----
Net asset value,
end of period .... $12.34
=====
Total return ....... 38.20%
Net assets, end of
period (in
millions) ........ $19
Ratio of expenses to
average net assets 2.71%**
Ratio of net investment
loss to average
net assets ....... -0.97%**
Portfolio turnover
rate ............. 112.68%***
*Commencement of operations.
**Annualized.
***For the twelve months ended June 30, 2000.
See notes to financial statements.
<PAGE>
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
Class C Shares
For a Share of Capital Stock Outstanding
Throughout The Period:
For the
period
from
10/5/99*
through
6/30/00
-------
Net asset value,
beginning of period $10.78
-----
Income from investment
operations:
Net investment income 0.01
Net realized and
unrealized gain
on investments .. 3.01
-----
Total from investment
operations ....... 3.02
-----
Less distributions:
From net investment
income .......... (0.00)
From capital gains (1.44)
-----
Total distributions (1.44)
-----
Net asset value,
end of period .... $12.36
=====
Total return ....... 38.43%
Net assets, end of
period (in
millions) ........ $3
Ratio of expenses to
average net assets 2.50%**
Ratio of net investment
loss to average
net assets ....... -0.73%**
Portfolio turnover
rate ............. 112.68%***
*Commencement of operations.
**Annualized.
***For the twelve months ended June 30, 2000.
See notes to financial statements.
<PAGE>
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
Class Y Shares
For a Share of Capital Stock Outstanding
Throughout Each Period:
For the
period
For the fiscal from
year ended June 30, 9/27/95*
----------------------------- through
2000 1999 1998 1997 6/30/96
------ ------ ------ --------------
Net asset value,
beginning of period $9.97 $11.85 $10.62 $8.95 $9.21
------ ------ ------ ------ ------
Income from investment
operations:
Net investment
income (loss) ... (.01) .09 .10 .09 .12
Net realized and
unrealized gain (loss)
on investments... 3.98 (0.74) 3.00 1.95 .30
------ ------ ------ ------ ------
Total from investment
operations ........ 3.97 (0.65) 3.10 2.04 .42
------ ------ ------ ------ ------
Less distributions:
From net investment
income........... (.04) (0.08) (0.09) (0.11) (0.08)
From capital gains (1.44) (1.15) (1.78) (0.26) (0.60)
------ ------ ------ ------ ------
Total distributions. (1.48) (1.23) (1.87) (0.37) (0.68)
------ ------ ------ ------ ------
Net asset value,
end of period ..... $12.46 $9.97 $11.85 $10.62 $8.95
====== ====== ====== ====== ======
Total return ....... 39.97% -5.06% 34.71% 23.45% 5.44%
Net assets, end of
period (in
millions) ........ $20 $9 $9 $7 $5
Ratio of expenses
to average net
assets ............ 1.12% 0.99% 0.97% 1.04%0.98%**
Ratio of net
investment income
to average
net assets ........ 0.03% 0.85% 0.93% 1.02%2.60%**
Portfolio
turnover rate ..... 112.68%149.45% 114.34%109.71%58.64%**
*Commencement of operations.
**Annualized.
See notes to financial statements.
<PAGE>
WADDELL & REED ADVISORS INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
NOTE 1 -- Significant Accounting Policies
Waddell & Reed Advisors International Growth Fund, Inc. (the "Fund"),
formerly United International Growth Fund, Inc., is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. Its investment objective is the long-term appreciation of your
investment. Realization of income is a secondary goal. The following is a
summary of significant accounting policies consistently followed by the Fund in
the preparation of its financial statements. The policies are in conformity
with accounting principles generally accepted in the United States of America.
A. Security valuation -- Each stock and convertible bond is valued at the
latest sale price thereof on the last business day of the fiscal period as
reported by the principal securities exchange on which the issue is traded
or, if no sale is reported for a stock, the average of the latest bid and
asked prices. Bonds, other than convertible bonds, are valued using a
pricing system provided by a pricing service or dealer in bonds.
Convertible bonds are valued using this pricing system only on days when
there is no sale reported. Stocks which are traded over-the-counter are
priced using the Nasdaq Stock Market, which provides information on bid and
asked prices quoted by major dealers in such stocks. Securities for which
quotations are not readily available are valued as determined in good faith
in accordance with procedures established by and under the general
supervision of the Fund's Board of Directors. Short-term debt securities
are valued at amortized cost, which approximates market.
B. Security transactions and related investment income -- Security
transactions are accounted for on the trade date (date the order to buy or
sell is executed). Securities gains and losses are calculated on the
identified cost basis. Original issue discount (as defined in the Internal
Revenue Code), premiums on the purchase of bonds and post-1984 market
discount are amortized for both financial and tax reporting purposes.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities are recorded as soon as the Fund is
informed of the ex-dividend date. Interest income is recorded on the
accrual basis. See Note 3 -- Investment Securities Transactions.
C. Foreign currency translations -- All assets and liabilities denominated in
foreign currencies are translated into U.S. dollars daily. Purchases and
sales of investment securities and accruals of income and expenses are
translated at the rate of exchange prevailing on the date of the
transaction. For assets and liabilities other than investments in
securities, net realized and unrealized gains and losses from foreign
currency translations arise from changes in currency exchange rates. The
Fund combines fluctuations from currency exchange rates and fluctuations in
market value when computing net realized and unrealized gain or loss from
investments.
D. Forward foreign currency exchange contracts -- A forward foreign currency
exchange contract (Forward Contract) is an obligation to purchase or sell a
specific currency at a future date at a fixed price. Forward Contracts are
"marked-to-market" daily at the applicable translation rates and the
resulting unrealized gains or losses are reflected in the Fund's financial
statements. Gains or losses are realized by the Fund at the time the
forward contract is extinguished. Contracts may be extinguished either by
entry into a closing transaction or by delivery of the currency. Risks may
arise from the possibility that the other party will not complete the
obligations of the contract and from unanticipated movements in the value
of the foreign currency relative to the U.S. dollar. The Fund uses forward
contracts to attempt to reduce the overall risk of its investments.
E. Federal income taxes -- It is the Fund's policy to distribute all of its
taxable income and capital gains to its shareholders and otherwise qualify
as a regulated investment company under Subchapter M of the Internal
Revenue Code. In addition, the Fund intends to pay distributions as
required to avoid imposition of excise tax. Accordingly, provision has not
been made for Federal income taxes. See Note 4 -- Federal Income Tax
Matters.
F. Dividends and distributions -- Dividends and distributions to shareholders
are recorded by the Fund on the business day following record date. Net
investment income dividends and capital gains distributions are determined
in accordance with income tax regulations which may differ from accounting
principles generally accepted in the United States of America. These
differences are due to differing treatments for items such as deferral of
wash sales and post-October losses, foreign currency transactions, net
operating losses and expiring capital loss carryovers. At June 30, 2000,
$5,506,268 was reclassified between accumulated undistributed net
investment income and accumulated undistributed net realized gain on
investment transactions. Net investment income, net realized gains and net
assets were not affected by this change.
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
NOTE 2 -- Investment Management and Payments to Affiliated Persons
The Fund pays a fee for investment management services. The fee is
computed daily based on the net asset value at the close of business. The fee is
payable by the Fund at the annual rates of: 0.85% of net assets up to $1
billion, 0.83% of net assets over $1 billion and up to $2 billion, 0.80% of net
assets over $2 billion and up to $3 billion, and 0.76% of net assets over $3
billion. The Fund accrues and pays this fee daily.
Pursuant to assignment of the Investment Management Agreement between the
Fund and Waddell & Reed, Inc. ("W&R"), Waddell & Reed Investment Management
Company ("WRIMCO"), a wholly owned subsidiary of W&R, serves as the Fund's
investment manager.
The Fund has an Accounting Services Agreement with Waddell & Reed Services
Company ("WARSCO"), a wholly owned subsidiary of W&R. Under the agreement,
WARSCO acts as the agent in providing accounting services and assistance to the
Fund and pricing daily the value of shares of the Fund. For these services, the
Fund pays WARSCO a monthly fee of one-twelfth of the annual fee shown in the
following table.
Accounting Services Fee
Average
Net Asset Level Annual Fee
(all dollars in millions) Rate for Each Level
------------------------- -------------------
From $ 0 to $ 10 $ 0
From $ 10 to $ 25 $ 10,000
From $ 25 to $ 50 $ 20,000
From $ 50 to $ 100 $ 30,000
From $ 100 to $ 200 $ 40,000
From $ 200 to $ 350 $ 50,000
From $ 350 to $ 550 $ 60,000
From $ 550 to $ 750 $ 70,000
From $ 750 to $1,000 $ 85,000
$1,000 and Over $100,000
For Class A, Class B and Class C shares, the Fund pays WARSCO a monthly per
account charge for transfer agency and dividend disbursement services of $1.3125
for each shareholder account which was in existence at any time during the prior
month, plus $0.30 for each account on which a dividend or distribution of cash
or shares had a record date in that month. With respect to Class Y shares, the
Fund pays WARSCO a monthly fee at an annual rate of 0.15% of the average daily
net assets of the class for the preceding month. The Fund also reimburses W&R
and WARSCO for certain out-of-pocket costs.
As principal underwriter for the Fund's shares, W&R received gross sales
commissions for Class A shares (which are not an expense of the Fund) of
$3,303,319. During the period ended June 30, 2000, W&R received $5,373 and
$1,388 in deferred sales charges for Class B and Class C shares, respectively.
With respect to Class A, Class B and Class C shares, W&R paid sales commissions
of $2,675,817 and all expenses in connection with the sale of Fund shares,
except for registration fees and related expenses.
Under a Distribution and Service Plan for Class A shares adopted by the
Fund pursuant to Rule 12b-1 under the Investment Company Act of 1940, the Fund
may pay monthly a distribution and/or service fee to W&R in an amount not to
exceed 0.25% of the Fund's Class A average annual net assets. The fee is to be
paid to reimburse W&R for amounts it expends in connection with the distribution
of the Class A shares and/or provision of personal services to Fund shareholders
and/or maintenance of shareholder accounts.
Under the Distribution and Service Plan adopted by the Fund for Class B and
Class C shares, respectively, the Fund may pay W&R, on an annual basis, a
service fee of up to 0.25% of the average daily net assets of the class to
compensate W&R for providing services to shareholders of that class and/or
maintaining shareholder accounts for that class and a distribution fee of up to
0.75% of the average daily net assets of the class to compensate W&R for
distributing the shares of that class. The Class B Plan and the Class C Plan
each permit W&R to receive compensation, through the distribution and service
fee, respectively, for its distribution activities for that class, which are
similar to the distribution activities described with respect to the Class A
Plan, and for its activities in providing personal services to shareholders of
that class and/or maintaining shareholder accounts of that class, which are
similar to the corresponding activities for which it is entitled to
reimbursement under the Class A Plan.
The Fund paid Directors' fees of $50,840, which are included in other
expenses.
W&R is a subsidiary of Waddell & Reed Financial, Inc., a holding company,
and a direct subsidiary of Waddell & Reed Financial Services, Inc., a holding
company.
NOTE 3 -- Investment Securities Transactions
Purchases of investment securities, other than short-term securities and
U.S. Government obligations, aggregated $1,674,749,280 while proceeds from
maturities and sales aggregated $1,907,434,333. Purchases of short-term
securities aggregated $5,469,127,069 while proceeds from maturities and sales
aggregated $5,221,076,980. No U.S. Government obligations were purchased or
sold during the period.
For Federal income tax purposes, cost of investments owned at June 30, 2000
was $1,450,669,701, resulting in net unrealized appreciation of $267,383,920, of
which $395,990,198 related to appreciated securities and $128,606,278 related to
depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net income
of $420,378,887 during its fiscal year ended June 30, 2000, of which was paid to
shareholders during the period ended June 30, 2000. Remaining capital gain net
income will be distributed to the Fund's shareholders.
NOTE 5 -- Multiclass Operations
The Fund is authorized to offer four classes of shares, Class A, Class B,
Class C and Class Y, each of which have equal rights as to assets and voting
privileges. Class Y shares are not subject to a sales charge on purchases, are
not subject to a Rule 12b-1 Distribution and Service Plan and are subject to a
separate transfer agency and dividend disbursement services fee structure. A
comprehensive discussion of the terms under which shares of each class are
offered is contained in the Prospectus and the Statement of Additional
Information for the Fund.
Income, non-class specific expenses, and realized and unrealized gains and
losses are allocated daily to each class of shares based on the value of their
relative net assets as of the beginning of each day adjusted for the prior day's
capital share activity.
Transactions in capital stock are summarized below. Amounts are in
thousands.
For the fiscal
year ended June 30,
--------------------------
2000 1999
------------ ------------
Shares issued from sale
of shares:
Class A ............ 130,486 92,391
Class B ............. 1,586 ---
Class C ............. 247 ---
Class Y ............ 924 842
Shares issued from
reinvestment of dividends
and/or capital gains
distribution:
Class A ............ 13,862 13,272
Class B ............. 22 ---
Class C ............. 3 ---
Class Y ............ 132 96
Shares redeemed:
Class A ............ (132,151) (92,479)
Class B ............. (42) ---
Class C ............. (13) ---
Class Y ............ (373) (769)
---------- -----------
Increase in outstanding
capital shares 14,683 13,353
========== ===========
Value issued from sale
of shares:
Class A ............ $1,635,518 $959,040
Class B ............. 20,924 ---
Class C ............. 3,260 ---
Class Y ............ 11,568 8,682
Value issued from
reinvestment of dividends
and/or capital gains
distribution:
Class A ............ 171,474 127,323
Class B ............. 271 ---
Class C ............. 41 ---
Class Y ............ 1,632 919
Value redeemed:
Class A ............ (1,658,118) (970,805)
Class B ............. (538) ---
Class C ............. (170) ---
Class Y ............ (4,873) (7,997)
-------- --------
Increase in outstanding
capital $180,989 $117,162
======== ========
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
Waddell & Reed Advisors International Growth Fund, Inc.:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Waddell & Reed Advisors International Growth
Fund, Inc. (formerly United International Growth Fund, Inc.) (the "Fund") as of
June 30, 2000, and the related statement of operations for the fiscal year then
ended, the statements of changes in net assets for each of the two fiscal years
in the period then ended, and the financial highlights for each of the five
fiscal years in the period then ended. These financial statements and the
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation
of securities owned as of June 30, 2000, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Waddell & Reed Advisors International Growth Fund, Inc. as of June 30, 2000, the
results of its operations for the fiscal year then ended, the changes in its net
assets for each of the two fiscal years in the period then ended, and the
financial highlights for each of the five fiscal years in the period then ended,
in conformity with accounting principles generally accepted in the United States
of America.
Deloitte & Touche LLP
Kansas City, Missouri
August 4, 2000
<PAGE>
INCOME TAX INFORMATION
The amounts of the dividends and long-term capital gains below, multiplied by
the number of shares owned by you on the record dates, will give you the total
amounts to be reported in your Federal income tax return for the years in which
they were received or reinvested.
PER-SHARE AMOUNTS REPORTABLE AS:
--------------------------------------------------------
For Individuals For Corporations
--------------------------------------------------------
Record Ordinary Long-Term Non- Long-Term
Date Total IncomeCapital GainQualifyingQualifyingCapital Gain
----------- ------------- -------- ----------------------------
Class A
12-15-99 $1.464 $0.1677 $1.2963 $0.0007 $0.1670 $1.2963
====== ======= ======= ======= ======= =======
Class B and Class C
12-15-99 $1.441 $0.1447 $1.2963 $0.0000 $0.1447 $1.2963
====== ======= ======= ======= ======= =======
Class Y
12-15-99 $1.484 $0.1877 $1.2963 $0.0013 $0.1864 $1.2963
====== ======= ======= ======= ======= =======
CORPORATION DEDUCTIONS -- Under Federal tax law, the amounts reportable as
Qualifying Dividends are eligible for the dividends received deduction in the
year received as provided by Section 243 of the Internal Revenue Code.
The tax status of dividends paid will be reported to you on Form 1099-DIV after
the close of the applicable calendar year.
Shareholders are advised to consult with their tax advisor concerning the tax
treatment of dividends and distributions from the Fund.
<PAGE>
To all traditional IRA Planholders:
As required by law, income tax will automatically be withheld from any
distribution or withdrawal from a traditional IRA unless you make a written
election not to have taxes withheld. The election may be made by submitting
forms provided by Waddell & Reed, Inc. which can be obtained from your Waddell &
Reed representative or by submitting Internal Revenue Service Form W-4P. Once
made, an election can be revoked by providing written notice to Waddell & Reed,
Inc. If you elect not to have tax withheld you may be required to make payments
of estimated tax. Penalties may be imposed by the IRS if withholding and
estimated tax payments are not adequate.
<PAGE>
DIRECTORS
Keith A. Tucker, Overland Park, Kansas, Chairman of the Board
James M. Concannon, Topeka, Kansas
John A. Dillingham, Kansas City, Missouri
David P. Gardner, San Mateo, California
Linda K. Graves, Topeka, Kansas
Joseph Harroz, Jr., Norman, Oklahoma
John F. Hayes, Hutchinson, Kansas
Robert L. Hechler, Overland Park, Kansas
Henry J. Herrmann, Overland Park, Kansas
Glendon E. Johnson, Miami, Florida
William T. Morgan, Coronado, California
Ronald C. Reimer, Mission Hills, Kansas
Frank J. Ross, Jr., Kansas City, Missouri
Eleanor B. Schwartz, Kansas City, Missouri
Frederick Vogel III, Milwaukee, Wisconsin
OFFICERS
Robert L. Hechler, President
Henry J. Herrmann, Vice President
Theodore W. Howard, Vice President and Treasurer
Thomas A. Mengel, Vice President
Kristen A. Richards, Vice President and Secretary
Daniel C. Schulte, Vice President
<PAGE>
THE WADDELL & REED ADVISORS GROUP OF MUTUAL FUNDS
Waddell & Reed Advisors Accumulative Fund
Waddell & Reed Advisors Asset Strategy Fund, Inc.
Waddell & Reed Advisors Bond Fund
Waddell & Reed Advisors Cash Management, Inc.
Waddell & Reed Advisors Continental Income Fund, Inc.
Waddell & Reed Advisors Government Securities Fund, Inc.
Waddell & Reed Advisors High Income Fund, Inc.
Waddell & Reed Advisors High Income Fund II, Inc.
Waddell & Reed Advisors Income Fund
Waddell & Reed Advisors International Growth Fund, Inc.
Waddell & Reed Advisors Municipal Bond Fund, Inc.
Waddell & Reed Advisors Municipal High Income Fund, Inc.
Waddell & Reed Advisors New Concepts Fund, Inc.
Waddell & Reed Advisors Retirement Shares, Inc.
Waddell & Reed Advisors Science and Technology Fund
Waddell & Reed Advisors Small Cap Fund, Inc.
Waddell & Reed Advisors Tax-Managed Equity Fund, Inc.
Waddell & Reed Advisors Vanguard Fund, Inc.
------------------------------------
FOR MORE INFORMATION:
Contact your representative, or your
local office as listed on your
Account Statement, or contact:
WADDELL & REED
CUSTOMER SERVICE
6300 Lamar Avenue
P.O. Box 29217
Shawnee Mission, KS 66201-9217
(888)-WADDELL
(888)-923-3355
Our INTERNET address is:
http://www.waddell.com
NUR1002A(6-00)
