0001193125-12-475099.txt : 20121119 0001193125-12-475099.hdr.sgml : 20121117 20121119111951 ACCESSION NUMBER: 0001193125-12-475099 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20121119 DATE AS OF CHANGE: 20121119 EFFECTIVENESS DATE: 20121119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WADDELL & REED ADVISORS FUNDS CENTRAL INDEX KEY: 0001072962 IRS NUMBER: 481216799 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-82447 FILM NUMBER: 121213569 BUSINESS ADDRESS: STREET 1: 6300 LAMAR AVE CITY: OVERLAND PARK STATE: KS ZIP: 66202 BUSINESS PHONE: 9132362000 MAIL ADDRESS: STREET 1: P O BOX 29217 CITY: SHAWNEE MISSION STATE: KS ZIP: 66201-9217 FORMER COMPANY: FORMER CONFORMED NAME: WADDELL & REED ADVISORS SMALL CAP FUND INC DATE OF NAME CHANGE: 20000829 FORMER COMPANY: FORMER CONFORMED NAME: UNITED SMALL CAP FUND INC DATE OF NAME CHANGE: 19990615 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WADDELL & REED ADVISORS FUNDS CENTRAL INDEX KEY: 0001072962 IRS NUMBER: 481216799 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-09435 FILM NUMBER: 121213570 BUSINESS ADDRESS: STREET 1: 6300 LAMAR AVE CITY: OVERLAND PARK STATE: KS ZIP: 66202 BUSINESS PHONE: 9132362000 MAIL ADDRESS: STREET 1: P O BOX 29217 CITY: SHAWNEE MISSION STATE: KS ZIP: 66201-9217 FORMER COMPANY: FORMER CONFORMED NAME: WADDELL & REED ADVISORS SMALL CAP FUND INC DATE OF NAME CHANGE: 20000829 FORMER COMPANY: FORMER CONFORMED NAME: UNITED SMALL CAP FUND INC DATE OF NAME CHANGE: 19990615 0001072962 S000006220 Waddell & Reed Advisors Small Cap Fund C000017147 Class A UNSAX C000017148 Class B WRSBX C000017149 Class C WSCCX C000017150 Class Y WRSYX 0001072962 S000024802 Waddell & Reed Advisors Accumulative Fund C000073777 Class A UNACX C000073778 Class B WAABX C000073779 Class C WAACX C000073780 Class Y WAAYX 0001072962 S000024805 Waddell & Reed Advisors International Growth Fund C000073789 Class A UNCGX C000073790 Class B WAIBX C000073791 Class C WAICX C000073792 Class Y WAIYX 0001072962 S000024808 Waddell & Reed Advisors New Concepts Fund C000073799 Class A UNECX C000073800 Class B UNEBX C000073801 Class C WNCCX C000073802 Class Y UNEYX 0001072962 S000024810 Waddell & Reed Advisors Science and Technology Fund C000073807 Class A UNSCX C000073808 Class B USTBX C000073809 Class C WCSTX C000073810 Class Y USTFX 0001072962 S000024811 Waddell & Reed Advisors Tax-Managed Equity Fund C000073811 Class A WTEAX C000073812 Class B WBTMX C000073813 Class C WCTMX 0001072962 S000024812 Waddell & Reed Advisors Value Fund C000073814 Class A WVAAX C000073815 Class B WVABX C000073816 Class C WVACX C000073817 Class Y WVAYX 0001072962 S000024813 Waddell & Reed Advisors Asset Strategy Fund C000073818 Class A UNASX C000073819 Class B WBASX C000073820 Class C WCASX C000073821 Class Y WYASX 0001072962 S000024814 Waddell & Reed Advisors Vanguard Fund C000073822 Class A UNVGX C000073823 Class B WRVBX C000073824 Class C WAVCX C000073825 Class Y WAVYX 0001072962 S000024817 Waddell & Reed Advisors Continental Income Fund C000073833 Class A UNCIX C000073834 Class B WACBX C000073835 Class C WACCX C000073836 Class Y WACYX 0001072962 S000024818 Waddell & Reed Advisors Core Investment Fund C000073837 Class A UNCMX C000073838 Class B UNIBX C000073839 Class C WCCIX C000073840 Class Y UNIYX 0001072962 S000024819 Waddell & Reed Advisors Dividend Opportunities Fund C000073841 Class A WDVAX C000073842 Class B WDVBX C000073843 Class C WDVCX C000073844 Class Y WDVYX 0001072962 S000024820 Waddell & Reed Advisors Energy Fund C000073845 Class A WEGAX C000073846 Class B WEGBX C000073847 Class C WEGCX C000073848 Class Y WEGYX 485BPOS 1 d408119d485bpos.htm WADDELL & REED ADVISORS FUNDS <![CDATA[Waddell & Reed Advisors Funds]]>

File No. 811-09435

File No. 333-82447

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

 

Form N-1A

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933    x
Pre-Effective Amendment No.       
Post-Effective Amendment No. 26   

and/or

REGISTRATION STATEMENT

UNDER

THE INVESTMENT COMPANY ACT OF 1940    x
Amendment No. 27   

WADDELL & REED ADVISORS FUNDS

(Exact Name as Specified in Charter)

 

6300 Lamar Avenue, Overland Park, Kansas   66202-4200
(Address of Principal Executive Office)   (Zip Code)

Registrant’s Telephone Number, including Area Code: (913) 236-2000

Philip A. Shipp,

6300 Lamar Avenue,

Overland Park, Kansas 66202-4200

(Name and Address of Agent for Service)

 

 

It is proposed that this filing will become effective

 

x immediately upon filing pursuant to paragraph (b)
¨ on (date) pursuant to paragraph (b)
¨ 60 days after filing pursuant to paragraph (a)(1)
¨ on (date) pursuant to paragraph (a)(1)
¨ 75 days after filing pursuant to paragraph (a)(2)
¨ on (date) pursuant to paragraph (a)(2) of Rule 485
¨ this post-effective amendment designates a new effective date for a previously filed post-effective amendment

DECLARATION REQUIRED BY RULE 24f-2 (a) (1)

The issuer has registered an indefinite amount of its securities under the Securities Act of 1933 pursuant to Rule 24f-2(a)(1). Notice for the fiscal year ended June 30, 2012 for the Waddell & Reed Advisors Equity Funds was filed on September 27, 2012. Notice for the fiscal year ended September 30, 2012 for the Waddell & Reed Advisors Fixed Income and Money Market Funds will be filed on or around December 17, 2012.

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and/or the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Post-Effective Amendment pursuant to Rule 485(b) of the Securities Act of 1933 and has duly caused this Post-Effective Amendment to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Overland Park, and State of Kansas, on the 19th day of November, 2012.

WADDELL & REED ADVISORS FUNDS

a Delaware statutory trust

(Registrant)

By /s/ Henry J. Herrmann

Henry J. Herrmann, President

Pursuant to the requirements of the Securities Act of 1933, and/or the Investment Company Act of 1940, this Post-Effective Amendment has been signed below by the following persons in the capacities on the 19th day of November, 2012.

 

Signatures       Title   
/s/David P. Gardner*       Chairman and Trustee   
David P. Gardner         
/s/Henry J. Herrmann       President and Trustee   
Henry J. Herrmann         
/s/Joseph W. Kauten       Vice President, Treasurer, Principal Financial Officer
Joseph W. Kauten       and Principal Accounting Officer   
/s/Michael L. Avery*       Trustee   
Michael L. Avery         
/s/Jarold W. Boettcher*       Trustee   
Jarold W. Boettcher         
/s/James M. Concannon*       Trustee   
James M. Concannon         
/s/John A. Dillingham*       Trustee   
John A. Dillingham         
/s/Joseph Harroz, Jr.*       Trustee   
Joseph Harroz, Jr.         
/s/Robert L. Hechler*       Trustee   
Robert L. Hechler         
/s/Albert W. Herman*       Trustee   
Albert W. Herman         
/s/Frank J. Ross, Jr.*       Trustee   
Frank J. Ross, Jr.         
/s/Eleanor B. Schwartz*       Trustee   
Eleanor B. Schwartz         

*By:     /s/Philip A. Shipp    
      Philip A. Shipp
      Attorney-in-Fact

 

ATTEST:     /s/Mara Herrington
      Mara Herrington
      Secretary

EXHIBIT INDEX

 

Index No.    Description of Exhibit
EX-101.INS    XBRL Instance Document
EX-101.SCH    XBRL Taxonomy Extension Schema Document
EX-101.CAL    XBRL Taxonomy Extension Calculation Linkbase
EX-101.DEF    XBRL Taxonomy Extension Definition Linkbase
EX-101.LAB    XBRL Taxonomy Extension Labels Linkbase
EX-101.PRE    XBRL Taxonomy Extension Presentation Linkbase
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You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 58% of the average value of its portfolio. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> <font style="FONT-FAMILY: ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br /><br /><font style="FONT-FAMILY: ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="FONT-FAMILY: Times New Roman" size="2">Waddell &amp; Reed Advisors Accumulative Fund invests primarily in common stocks of companies that Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, considers to be high in quality and attractive in their long-term investment potential. Although the Fund generally emphasizes large cap companies (typically, companies with capitalizations of at least $10 billion at the time of acquisition), it may invest in companies of any size, and of any industry, in seeking to achieve its objective. The Fund may emphasize a blend of value and growth potential in selecting stocks. Value stocks are those that WRIMCO believes are currently selling below their true worth. A stock has growth potential if, in WRIMCO&#146;s opinion, the earnings of the company are likely to grow faster than the economy. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">WRIMCO&#146;s investment philosophy for the Fund is a blend between bottom-up fundamental stock and sector analysis, coupled with a top-down macroeconomic perspective that WRIMCO uses to guide it in its selection of industries and sector weightings. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">In selecting securities for the Fund, WRIMCO considers many factors, which may include: stability and predictability of earnings growth; acceleration of earnings and/or revenue; improvement in profitability and market share; and sustainable generation of cashflows from operations. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">Many U.S. companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to foreign markets through investments in these companies. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">Generally, in determining whether to sell a security, WRIMCO considers many factors, which may include: changes in economic or market factors in general or with respect to a particular industry; changes in the market trends or other factors affecting an individual security; and changes in the relative market performance or appreciation possibilities offered by individual securities. WRIMCO also may sell a security to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#8217;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Foreign Exposure Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. The securities of many companies may have significant exposure to foreign markets as a result of the company&#8217;s products or services in those foreign markets. As a result, a company&#8217;s domicile and/or the markets in which the company&#8217;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#8217;s products or services are sold. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Growth Stock Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Large Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Management Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#8217;s skill in evaluating and managing the Fund&#8217;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Market Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#8217;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Value Stock Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of WRIMCO, undervalued. The value of a security believed by WRIMCO to be undervalued may never reach what is believed to be its full value, or such security&#146;s value may decrease. </font></li></ul> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 16.03% (the second quarter of 2009) and the lowest quarterly return was -24.85% (the fourth quarter of 2008). The Class A return for the year through September 30, 2012 was 13.33%.</font> <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> 0.58 <font style="FONT-FAMILY: Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell & Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds.</font> 100000 <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#8217;s shares will change, and you could lose money on your investment.</font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund).</font> <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> <font style="FONT-FAMILY: Times New Roman" size="2"><u>www.waddell.com</u></font> <font style="FONT-FAMILY: Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future.</font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> <font style="FONT-FAMILY: Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> <font style="FONT-FAMILY: Times New Roman" size="2"> Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#8217;s shares at the end of the period.</font> 0.0575 0 0 0 0 0.007 0.007 0.007 0.007 0.0025 0.01 0.01 0 0.0027 0.0079 0.0056 0.002 0.0122 0.0249 0.0226 0.009 0.01 0.05 0.01 692 652 229 92 940 1076 706 287 1207 1426 1210 498 1967 2512 2595 1108 692 252 229 92 940 776 706 287 1207 1326 1210 498 1967 2512 2595 1108 -0.0748 -0.0749 -0.0486 -0.0693 -0.0288 -0.0154 0.0211 -0.0276 -0.0159 -0.0163 -0.0134 -0.0174 -0.0145 -0.0013 -0.0025 -0.007 0.0132 0.0125 0.0112 0.0078 0.009 0.0221 0.0292 0.0345 -0.2295 0.1958 0.0735 0.1069 0.128 0.1394 -0.398 0.2562 0.1577 -0.0184 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> 2009-06-30 0.1603 <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> 2008-12-31 -0.2485 <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 2012-09-30 0.1333 <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsAccumulativeFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsAccumulativeFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsAccumulativeFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsAccumulativeFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsAccumulativeFundBarChart column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsAccumulativeFund column period compact * ~</div> 2012-10-26 2012-10-31 2012-10-31 <font style="FONT-FAMILY: Times New Roman" size="5">Waddell & Reed Advisors Core Investment Fund</font> <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> <font style="font-family:Times New Roman" size="2">To seek to provide capital growth and appreciation. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 58% of the average value of its portfolio. </font> 0.58 <font style="font-family:Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. </font> 100000 <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> <font style="FONT-FAMILY: ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br /><br /><font style="FONT-FAMILY: ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#8217;s shares will change, and you could lose money on your investment.</font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund).</font> <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> <font style="FONT-FAMILY: Times New Roman" size="2"><u>www.waddell.com</u></font> <font style="FONT-FAMILY: Times New Roman" size="2">The Fund&#8217;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future.</font> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="FONT-FAMILY: Times New Roman" size="2">Waddell &amp; Reed Advisors Core Investment Fund seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities, primarily in common stocks of large cap companies that Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, believes have dominant market positions in their industries. Large cap companies typically are companies with market capitalizations of at least $10 billion at the time of acquisition. The Fund invests in securities that have the potential for capital appreciation, or that WRIMCO expects to resist market decline. Although the Fund typically invests in securities issued by large cap companies, it may invest in securities issued by companies of any size. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">WRIMCO believes that long-term earnings power relative to market expectations is an important component for stock performance. From a top-down perspective, WRIMCO seeks to identify current trends or themes which indicate specific industries that have the potential to experience multi-year growth. Once identified, WRIMCO seeks to invest for the Fund in what it believes to be dominant companies that will benefit from these trends or themes; including companies that WRIMCO believes have long-term earnings potential greater than market expectations. The Fund typically holds a small number of stocks (generally 40 to 50). </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">Many U.S. companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to foreign markets through investments in these companies. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">Generally, in determining whether to sell a security, WRIMCO uses the same type of analysis that it uses in buying securities. Among other factors, WRIMCO considers whether the security has fully appreciated according to WRIMCO&#146;s forecast, has ceased to offer the prospect of significant growth potential, has had its competitive barriers diminished, has seen its earnings catalyst lose its impact, or has performed below WRIMCO&#146;s expectations regarding the security&#146;s long-term earnings potential. WRIMCO also may sell a security to reduce the Fund&#146;s holding in that security if that issuer&#146;s competitive advantage has diminished or if the Fund&#146;s portfolio managers lose conviction in a previously identified trend or theme, to take advantage of more attractive investment opportunities or to raise cash. </font> <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Foreign Exposure Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. The securities of many companies may have significant exposure to foreign markets as a result of the company&#146;s products or services in those foreign markets. As a result, a company&#146;s domicile and/or the markets in which the company&#146;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#146;s products or services are sold. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Growth Stock Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Holdings Risk</font><font style="font-family:Times New Roman" size="2">. The Fund typically holds a small number of stocks (generally 40 to 50). As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund&#146;s NAV than it would if the Fund invested in a larger number of securities.</font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Large Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Management Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Market Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li></ul> <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> <font style="font-family:ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 17.25% (the third quarter of 2009) and the lowest quarterly return was -20.25% (the fourth quarter of 2008). The Class A return for the year through September 30, 2012 was 18.07%.</font> <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> <font style="FONT-FAMILY: Times New Roman" size="2">Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> <font style="FONT-FAMILY: Times New Roman" size="2"> Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#8217;s shares at the end of the period.</font> <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 2012-09-30 0.1807 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> 2009-09-30 0.1725 <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> 2008-12-31 -0.2025 -0.2198 0.1739 0.0983 0.0883 0.1697 0.1412 -0.3448 0.232 0.2057 0.0124 0.0575 0 0 0 0 0.0065 0.0065 0.0065 0.0065 0.0025 0.01 0.01 0 0.0025 0.0075 0.0048 0.0019 0.0115 0.024 0.0213 0.0084 0.01 0.05 0.01 685 643 216 86 919 1048 667 268 1172 1380 1144 466 1892 2425 2462 1037 685 243 216 86 919 748 667 268 1172 1280 1144 466 1892 2425 2462 1037 -0.0458 -0.0537 -0.0166 -0.0351 0.0027 0.0173 0.0211 -0.0065 0.0117 0.0059 0.0109 0.0102 0.0135 0.0272 -0.0025 -0.0087 0.031 0.0254 0.0273 0.0251 0.0264 0.0403 0.0292 0.0241 <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsCoreInvestmentFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsCoreInvestmentFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsCoreInvestmentFund column period compact * ~</div> <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsCoreInvestmentFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsCoreInvestmentFundBarChart column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsCoreInvestmentFund column period compact * ~</div> 0.0575 0 0 0 <font style="FONT-FAMILY: Times New Roman" size="5">Waddell & Reed Advisors Small Cap Fund</font> <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> 0 <font style="font-family:Times New Roman" size="2">To seek to provide growth of capital. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> 0.0575 0 0 0 <font style="font-family:Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. </font> 0.01 0.05 0.01 0 100000 0.0085 0.0085 0.0085 0.0085 <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> 0.0025 0.01 0.01 0 0.0085 0.0085 0.0085 0.0085 <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> 0.0025 0.01 0.01 0 0.0043 0.0114 0.0073 0.0024 0.0153 0.0299 0.0258 0.0109 0.05 0.01 0.01 722 702 261 111 1031 1224 802 347 1361 1672 1370 601 2294 2964 2915 1329 0.0046 0.0087 0.0054 0.0022 <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> 0.0156 0.0272 0.0239 0.0107 722 302 261 111 1031 924 802 347 1361 1572 1370 601 <font style="font-family:ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br/><br/><font style="font-family:ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> 2294 2964 2915 1329 -0.1873 0.2154 0.1232 0.1633 0.2202 0.2238 -0.4073 0.2806 0.1484 -0.0767 -0.1298 -0.132 -0.0807 -0.1259 -0.0868 -0.0726 -0.1211 -0.1331 <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> -0.0148 -0.0163 -0.0123 -0.0175 -0.0132 0.0014 -0.0316 -0.0313 0.0387 0.0373 0.0336 0.0316 0.0346 0.0498 0.0427 0.0437 725 675 242 109 1039 1144 745 340 <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> 1376 1540 1275 590 2325 2771 2726 1306 <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 51% of the average value of its portfolio. </font> <font style="FONT-FAMILY: Times New Roman" size="5">Waddell & Reed Advisors New Concepts Fund</font> 0.51 <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="font-family:Times New Roman" size="2">To seek to provide growth of capital. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="font-family:Times New Roman" size="2">Waddell &amp; Reed Advisors Small Cap Fund seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in common stocks of small cap companies. Small cap companies typically are companies with market capitalizations below $3.5 billion at the time of acquisition. The Fund emphasizes smaller companies positioned in new or emerging industries where Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, believes there is opportunity for higher growth than in established industries. The Fund&#146;s investments in equity securities may include common stocks that are offered in initial public offerings (IPOs). <br/><br/>In selecting securities for the Fund, WRIMCO utilizes a bottom-up stock picking process that focuses on companies it believes have sustainable long-term growth potential with superior financial characteristics and, therefore, are believed by WRIMCO to be of a higher quality than many other small cap companies. WRIMCO may look at a number of factors regarding a company, such as: management that is aggressive, creative, strong and/or dedicated, technological or specialized expertise, new or unique products or services, entry into new or emerging industries, growth in earnings/growth in revenue and sales/positive cash flows, ROIC (return on invested capital), market share, barriers to entry, operating margins, security size and liquidity. <br/><br/>Generally, in determining whether to sell a security, WRIMCO uses the same type of analysis that it uses in buying securities. For example, WRIMCO may sell a security if it determines that the stock no longer offers significant growth potential, which may be due to a change in the business or management of the company or a change in the industry of the company. WRIMCO also may sell a security to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font><br /><br /> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> 100000 <font style="font-family:Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds.</font> 0.0575 0 0 0 725 275 242 109 1039 844 745 340 1376 1440 1275 590 0 0.01 0.05 0.01 2325 2771 2726 1306 <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> 0.0085 0.0085 0.0085 0.0085 0.0025 0.01 0.01 0 0.0035 0.0075 0.0055 0.002 -0.1093 -0.1224 -0.049 0.0145 -0.0991 -0.0629 0.026 -0.0511 -0.0291 0.024 -0.0343 0.0105 0.0304 0.0228 0.0269 0.0303 0.034 0.0486 0.0209 0.0142 0.0581 0.0502 0.0509 0.0537 0.0556 0.0703 0.0448 0.0423 <font style="FONT-FAMILY: Times New Roman" size="5">Waddell & Reed Advisors Vanguard Fund</font> <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> <font style="font-family:Times New Roman" size="2">To seek to provide growth of capital. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font> <ul type="square"><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Company Risk</font><font style="font-family:Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li> <li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Growth Stock Risk</font><font style="font-family:Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li> <li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Initial Public Offering Risk</font><font style="font-family:Times New Roman" size="2">. Investments in IPOs can have a significant positive impact on the Fund&#146;s performance; however, any positive effect of investments in IPOs may not be sustainable because of a number of factors. Namely, the Fund may not be able to buy shares in some IPOs, or may be able to buy only a small number of shares. Also, the Fund may not be able to buy the shares at the commencement of the offering, and the general availability and performance of IPOs are dependent on market psychology and economic conditions. To the extent that IPOs have a significant impact on the Fund&#146;s performance, this may not be able to be replicated in the future. The relative performance impact of IPOs is also likely to decline as the Fund grows. </font></li> <li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Liquidity Risk</font><font style="font-family:Times New Roman" size="2">. Generally, a security is liquid if the Fund is able to sell the security at a fair price within a reasonable time. Liquidity is generally related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Fund may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. </font></li> <li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Management Risk</font><font style="font-family:Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li> <li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Market Risk</font><font style="font-family:Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li> <li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Small Company Risk</font><font style="font-family:Times New Roman" size="2">. Equity securities of small capitalization companies are subject to greater price volatility, lower trading volume and less liquidity due to, among other things, such companies&#146; small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations and such securities may be more affected than other types of stocks by the underperformance of a sector or during market downturns. In some cases, there could be difficulties in selling securities of small capitalization companies at the desired time. </font></li></ul> <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. </font> <font style="FONT-FAMILY: Times New Roman" size="5">Waddell & Reed Advisors Asset Strategy Fund</font> <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> <font style="FONT-FAMILY: Times New Roman" size="5">Waddell &amp; Reed Advisors International Growth Fund</font> <font style="FONT-FAMILY: Times New Roman" size="5">Waddell & Reed Advisors Science and Technology Fund</font> 0.0575 <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> 0 0 0 <font style="FONT-FAMILY: Times New Roman" size="5">Waddell &amp; Reed Advisors Dividend Opportunities Fund </font> <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> <font style="font-family:Times New Roman" size="2">To seek to provide growth of capital.</font> 0.01 0.05 0.01 0 <font style="font-family:Times New Roman" size="2">To seek to provide growth of capital. </font> <font style="font-family:Times New Roman" size="2">To seek to provide total return. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. <br/><br/>After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. <br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> <font style="font-family:Times New Roman" size="2">To seek to provide total return. </font> <font style="FONT-FAMILY: Times New Roman" size="5">Waddell & Reed Advisors Tax-Managed Equity Fund</font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> 0.0575 <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> 0 0 0 <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). </font> 0.0575 0 0 0 0 <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="font-family:Times New Roman" size="2">To seek to provide growth of capital while minimizing taxable gains and income to shareholders. </font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> 0.0069 0.0069 0.0069 0.0069 <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> 0 0.01 0.05 0.0065 <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> 0.01 0.0065 0.0065 0.0065 <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> 0.0025 0.01 0.01 0 <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> 0.0025 0.01 0.01 0 0.003 0.0083 0.0064 0.0019 <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> 0.0027 <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 48% of the average value of its portfolio. </font> 0.0048 0.0034 0.002 0.0124 0.0252 0.0233 0.0088 0.0117 0.0213 0.0199 0.0085 0 0 0 0.0575 0.48 0.0575 0 0 0.01 0.05 0.01 0 <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> 0.01 0.05 0.01 <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> 0.0065 0.0065 0.0065 0.0025 0.01 0.01 0.0025 0.0049 0.0041 0.01 0.0115 0.05 <font style="font-family:Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> 0.01 0.0214 0.0206 <font style="FONT-FAMILY: ARIAL" size="1"><i> This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> <font style="FONT-FAMILY: ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br /><br /><font style="FONT-FAMILY: ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> 694 655 236 90 <font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. </font> 946 1085 727 281 1217 1440 1245 488 1989 2540 2666 1084 <font style="font-family:Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> 0.007 0.007 0.007 0.007 <font style="font-family:Times New Roman" size="2"> After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. </font> 0.0025 0.01 0.01 0 685 617 209 <font style="font-family:ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br/><br/><font style="font-family:ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> 0.0037 919 970 0.0077 646 0.0053 0.0021 1172 1249 1108 687 1892 616 2220 202 2390 87 <font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future.</font> 0.0132 <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> 0.0247 0.0223 0.0091 714 663 243 107 925 967 624 271 1007 1108 748 334 694 255 236 90 1182 1244 1073 471 <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> 946 785 1322 727 1480 281 1280 579 1914 2217 <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> 2317 1049 1217 1340 1245 488 2210 2654 2736 1283 1989 2540 2666 1084 <font style="font-family:Times New Roman" size="2"><u>www.waddell.com</u></font> <font style="font-family:ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br /><br /><font style="font-family:ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> 0.0084 0.0084 0.0084 0.0084 0.0025 0.01 <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 37% of the average value of its portfolio. </font> 0.01 0 <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> 0.0029 0.0073 0.0055 0.002 <font style="font-family:Times New Roman" size="2"> Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> 0.37 0.0138 0.0257 0.0239 0.0104 714 <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> 263 243 107 <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsInternationalGrowthFund column period compact * ~</div> <font style="font-family:ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br/><br/><font style="font-family:ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> <font style="font-family:ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br/><br/><font style="font-family:ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> 702 650 226 93 969 1070 697 290 687 216 202 87 <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> 1257 1416 1195 504 925 667 624 271 1007 808 748 334 2074 2522 2565 1120 1322 1182 1380 1144 1280 1073 579 471 2210 2654 2736 1283 1914 2217 2317 1049 <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> <font style="font-family:Times New Roman" size="2">Waddell &amp; Reed Advisors Tax-Managed Equity Fund seeks to achieve its objective by investing primarily in a diversified portfolio of common stocks of companies that Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, considers to be high in quality and attractive in their long-term investment potential. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities. For this purpose, such equity securities consist primarily of common stocks. WRIMCO seeks stocks of growth-oriented companies that it believes have above-average earnings predictability and stability. While the Fund typically invests in the common stocks of primarily large cap U.S. companies, it may invest in companies of any size, any industry or any country in seeking to achieve its objective. Large cap companies are typically companies with market capitalizations of at least $10 billion at the time of acquisition. </font><br /><br /><font style="font-family:Times New Roman" size="2">WRIMCO manages the Fund using an investment strategy that is sensitive to the potential impact of Federal income tax on shareholders&#146; investment returns. The Fund&#146;s tax-sensitive investment strategy is intended to lead to lower distributions of net investment income and realized net capital gains than funds managed without seeking to minimize adverse Federal income tax consequences. </font><br /><br /><font style="font-family:Times New Roman" size="2">WRIMCO typically invests for the long term and primarily utilizes a bottom-up strategy in selecting securities for the Fund and seeks companies that it believes have dominant market positions and established competitive advantages. WRIMCO believes that these characteristics can help to mitigate competition and lead to more sustainable revenue and earnings growth. </font><br /><br /><font style="font-family:Times New Roman" size="2">WRIMCO attempts to focus on growth-oriented companies with sustainable competitive advantages that will allow them to have more persistent growth over long periods of time. The key factors WRIMCO typically analyzes may include a company&#146;s brand equity, proprietary technology, economies of scale, level of intra- and inter-industry competition, operating margins and return of capital, threat of substitute products and the interaction and bargaining power between a company, its customers, suppliers and competitors. The Fund typically holds a small number of stocks (generally 40 to 60). </font><br /><br /><font style="font-family:Times New Roman" size="2">Many U.S. companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to foreign markets through investments in these companies. </font><br /><br /><font style="font-family:Times New Roman" size="2">When deciding to sell a security, WRIMCO considers the negative tax impact of realizing capital gains and, if applicable, the positive tax impact of realizing capital losses. However, WRIMCO may sell a security at a realized gain if it determines that the potential tax cost is outweighed by the risk of continuing to own the security, to reduce the Fund&#146;s holding in that security, or if more attractive investment opportunities are available. In addition, redemptions by shareholders may force the Fund to sell securities at an inopportune time, potentially resulting in realized gains. </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsInternationalGrowthFund column period compact * ~</div> -0.167 <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> 0.3452 0.1326 <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 30% of the average value of its portfolio. </font> 0.1237 0.0616 0.3 0.0769 <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 46% of the average value of its portfolio. </font> -0.3771 0.4297 0.3594 <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> -0.0549 702 250 226 93 969 770 697 290 <font style="FONT-FAMILY: ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br /><br /><font style="FONT-FAMILY: ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> 1257 1316 1195 504 2074 2522 2565 1120 <font style="font-family:Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> 100000 <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 53% of the average value of its portfolio. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> <font style="FONT-FAMILY: Times New Roman" size="2">Waddell &amp; Reed Advisors Vanguard Fund seeks to achieve its objective by investing primarily in a diversified portfolio of common stocks issued by large capitalization companies that Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, believes are high-quality, growth-oriented companies with appreciation possibilities. Large capitalization companies typically are companies with market capitalizations of at least $10 billion at the time of acquisition. Growth-oriented companies are those whose earnings WRIMCO believes are likely to grow faster than the economy. The Fund seeks to generate solid returns while striving to protect against downside risks. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">WRIMCO primarily utilizes a bottom-up strategy in selecting securities for the Fund and seeks companies that it believes have dominant market positions and established competitive advantages. WRIMCO believes that these characteristics can help to mitigate competition and lead to more sustainable revenue and earnings growth. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">WRIMCO attempts to focus on companies operating in large, growing, addressable markets (generally, the potential markets for their goods and services) whose competitive market position WRIMCO believes will allow them to grow faster than the general economy. The key factors WRIMCO typically analyzes consist of: a company&#146;s brand equity, balance sheet, proprietary technology, economies of scale, and level of intra- and inter-industry competition; the threat of substitute products; and the interaction and bargaining power between a company, its customers, suppliers and competitors. The Fund typically holds a small number of stocks (generally 45 to 60). </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">Many U.S. companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to foreign markets through investments in these companies. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">In general, WRIMCO may sell a security when, in WRIMCO&#146;s opinion, a company experiences deterioration in its growth and/or profitability characteristics, or a fundamental breakdown of its sustainable competitive advantages. WRIMCO also may sell a security if it determines that the security no longer presents sufficient appreciation potential; this may be caused by, or be an effect of, changes in the industry of the issuer, loss by the company of its competitive position, and/or poor use of resources. WRIMCO also may sell a security to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 43% of the average value of its portfolio. </font> 0.53 <font style="font-family:Times New Roman" size="2">Waddell &amp; Reed Advisors International Growth Fund seeks to achieve its objective by investing primarily in common stocks of foreign companies that Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, believes are competitively well-positioned, gaining market share, have the potential for long-term growth and operate in regions or countries that WRIMCO believes possess attractive growth characteristics. The Fund primarily invests in issuers of developed countries, although the Fund has the ability to invest in issuers domiciled in or doing business in any country or region around the globe, including emerging markets. While the Fund primarily invests in securities issued by large capitalization companies (typically, companies with market capitalizations of at least $10 billion at the time of acquisition), it may invest in securities issued by companies of any size. </font><br/><br/><font style="font-family:Times New Roman" size="2">WRIMCO utilizes a research-based investment process that blends top-down global economic analysis with bottom-up stock selection. After identifying promising opportunities around the world, WRIMCO seeks strong companies in industries which it believes are growing faster than their underlying economies. WRIMCO may look at a number of factors in selecting securities for the Fund&#146;s portfolio, including: a company&#146;s competitive position and its sustainability; a company&#146;s growth and earnings potential and valuation; a company&#146;s financials, including cash flow and balance sheet; management of the company; strength of the industry; and applicable economic, market and political conditions of the country in which the company is located and/or in which it is doing business. </font><br/><br/><font style="font-family:Times New Roman" size="2">Generally, in determining whether to sell a security, WRIMCO uses the same type of analysis that it uses in buying securities. For example, WRIMCO may sell a security issued by a company if it believes the company has experienced a fundamental breakdown of its sustainable competitive advantage or no longer offers significant growth potential, if it believes the management of the company has weakened, and/or there exists political or economic instability in the issuer&#146;s country. WRIMCO also may sell a security to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 0.43 <font style="font-family:Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds.</font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> 100000 685 217 209 707 660 242 106 987 1099 <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> 745 331 1287 1465 1275 574 <font style="FONT-FAMILY: Times New Roman" size="5">Waddell & Reed Advisors Value Fund</font> 2137 2613 2726 1271 <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> 2012-09-30 <font style="font-family:Times New Roman" size="2">Waddell &amp; Reed Advisors Dividend Opportunities Fund seeks to achieve its objective by investing primarily in large cap companies, that are often market leaders in their industry with established operating records that Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, believes are high-quality companies that may accelerate or grow their dividend payout ratio and that also demonstrate favorable prospects for total return. Under normal circumstances, the Fund invests at least 80% of its net assets in dividend-paying equity securities. For this purpose, such securities consist primarily of dividend-paying common stocks. Although the Fund invests primarily in securities issued by large cap companies (typically, companies with capitalizations of at least $10 billion at the time of acquisition), it may invest in securities issued by companies of any size. </font><br/><br/><font style="font-family:Times New Roman" size="2">The Fund primarily focuses on companies that have one or more of the following characteristics: high dividend yields that are, in the opinion of WRIMCO, relatively safe; above-average dividend yield that WRIMCO expects will continue and/or grow; below-average dividend yield but that WRIMCO expects could grow over the next few years; and no dividend yield but WRIMCO expects the company to initiate payment of dividends. WRIMCO also considers other factors, which may include the company&#146;s: established operating history; competitive dividend yields; growth and profitability opportunities; return on capital; history of improving sales and profits; status as a market leader in its industry; and stock price value. </font><br/><br/><font style="font-family:Times New Roman" size="2">Many U.S. companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to foreign markets through investments in these companies. </font><br/><br/><font style="font-family:Times New Roman" size="2">Generally, in determining whether to sell a security, WRIMCO considers many factors, including: changes in economic or market factors in general or with respect to a particular industry, changes in the market trends or other factors affecting an individual security, and changes in the relative market performance or appreciation possibilities offered by individual securities. WRIMCO also may sell a security to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> 919 670 646 <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> <font style="font-family:Times New Roman" size="2">To seek to provide capital appreciation. </font> 1172 1149 1108 1892 2220 2390 <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> 707 260 242 106 987 799 745 331 1287 1365 1275 574 <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> 0.1662 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> 2009-06-30 2137 2613 2726 1271 0.1857 <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> 2008-12-31 -0.2273 0.0575 0 0 0 <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font> <ul type="square"> <li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Company Risk</font><font style="font-family:Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li> <li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Emerging Market Risk</font><font style="font-family:Times New Roman" size="2">. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristic of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. </font></li> <li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Foreign Currency Risk</font><font style="font-family:Times New Roman" size="2">. Foreign securities may be denominated in foreign currencies. The value of the Fund&#146;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. </font></li> <li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Foreign Securities Risk</font><font style="font-family:Times New Roman" size="2">. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that may not be associated with the U.S. markets and that could affect the Fund&#146;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse foreign tax consequences; different and/or less stringent financial reporting standards; custody; and settlement delays. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. </font></li> <li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Growth Stock Risk</font><font style="font-family:Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li> <li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Large Company Risk</font><font style="font-family:Times New Roman" size="2">. Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. </font></li> <li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Management Risk</font><font style="font-family:Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li> <li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Market Risk</font><font style="font-family:Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li> </ul> <font style="FONT-FAMILY: Times New Roman" size="2">Waddell &amp; Reed Advisors New Concepts Fund seeks to achieve its objective by investing primarily in common stocks of mid cap companies that Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, believes offer above-average growth potential. Mid cap companies typically are companies with market capitalizations within the range of companies in the Russell Midcap Growth Index at the time of acquisition. As of September 30, 2012, this range of market capitalizations was between approximately $751.6 million to $22.1 billion. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">In selecting securities for the Fund, WRIMCO primarily emphasizes a bottom-up approach and may look at a number of factors in its consideration of a company, such as: new or innovative products or services; adaptive or creative management; strong financial and operational capabilities to sustain multi-year growth; stable and consistent revenue, earnings, and cash flow; strong balance sheet; market potential; and profit potential. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">Generally, in determining whether to sell a security, WRIMCO considers many factors, including excessive valuation given company growth prospects, deterioration of fundamentals, weak cash flow to support shareholder returns, and unexpected and poorly explained management changes. WRIMCO also may sell a security to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> 0.01 0.05 0.01 0 <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment.</font> <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance </b> <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 18.57% (the second quarter of 2009) and the lowest quarterly return was -22.73% (the fourth quarter of 2008). The Class A return for the year through September 30, 2012 was 16.62%.</font> <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Company Risk</font><font style="font-family:Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. In addition, there is no guarantee that the companies in which the Fund invests will declare dividends in the future or that dividends, if declared, will remain at current levels or increase over time. The amount of any dividend paid by the company may fluctuate significantly. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Foreign Exposure Risk</font><font style="font-family:Times New Roman" size="2">. The securities of many companies may have significant exposure to foreign markets as a result of the company&#146;s products or services in those foreign markets. As a result, a company&#146;s domicile and/or the markets in which the company&#146;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#146;s products or services are sold. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Growth Stock Risk</font><font style="font-family:Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Large Company Risk</font><font style="font-family:Times New Roman" size="2">. Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Management Risk</font><font style="font-family:Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Market Risk</font><font style="font-family:Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Sector Risk</font><font style="font-family:Times New Roman" size="2">. At times, the Fund may have a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector. Companies in the same economic sector may be similarly affected by economic or market events, making the Fund more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. </font></li></ul> <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#8217;s shares will change, and you could lose money on your investment.</font> <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> <font style="font-family:Times New Roman" size="2">Waddell &amp; Reed Advisors Asset Strategy Fund seeks to achieve its objective by allocating its assets primarily among stocks, bonds and short-term instruments of issuers in markets around the globe, as well as investments in precious metals and investments with exposure to various foreign currencies. The Fund may invest its assets in any market that Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, believes can offer a high probability of return or, alternatively, can provide a high degree of relative safety in uncertain times. Dependent on its outlook for the U.S. and global economies, WRIMCO identifies growth themes and then focuses its strategy on allocating the Fund&#146;s assets among stocks, bonds, cash, precious metals, currency and derivative instruments, including derivatives traded over-the-counter or on exchanges. After determining these allocations, WRIMCO seeks attractive opportunities within each market by focusing generally on issuers in countries, sectors and companies with strong cash flow streams and low balance sheet leverage. The Fund may, however, also invest in issuers with higher balance sheet leverage if WRIMCO believes that the Fund will be appropriately compensated for the increased risk. </font><ul type="square"><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2">&#147;Stocks&#148; include equity securities of all types, although WRIMCO typically emphasizes growth potential in selecting stocks by focusing on what it believes are steady-growth companies that fit WRIMCO&#146;s criteria for sustainable competitive advantage and that WRIMCO believes are positioned to benefit from continued global rebalancing and the globally emerging middle class. Growth stocks are those whose earnings WRIMCO believes are likely to grow faster than the economy. The Fund may invest in securities issued by companies of any size, but primarily focuses on securities issued by large capitalization companies.</font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2">&#147;Bonds&#148; include all varieties of fixed-income instruments, such as corporate debt securities or securities issued or guaranteed by the U.S. government or its agencies or instrumentalities (U.S. government securities), with remaining maturities of more than one year. This investment type may include a significant amount, up to 35% of the Fund&#146;s total assets, of high-yield/high-risk bonds, or junk bonds, which include bonds rated BB+ or below by Standard &amp; Poor&#146;s, a division of The McGraw-Hill Companies, Inc. (S&amp;P), or comparably rated by another nationally recognized statistical rating organization (NRSRO) or, if unrated, determined by WRIMCO to be of comparable quality. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2">&#147;Short-term instruments&#148; include all types of short-term securities with remaining maturities of one year or less, including higher-quality money market instruments. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2">Within each of these investment types, the Fund may invest in U.S. and foreign securities; the Fund may invest up to 100% of its total assets in foreign securities, including issuers located in and/or generating revenue from emerging markets. Many U.S. companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to foreign markets through investments in these companies. </font></li></ul><font style="font-family:Times New Roman" size="2">WRIMCO may allocate the Fund&#146;s investments among these different types of securities in different proportions at different times, including up to 100% in stocks, bonds, or short-term instruments, respectively. WRIMCO may exercise a flexible strategy in the selection of securities, and the Fund is not required to allocate its investments among stocks and bonds in any fixed proportion, nor is it limited by investment style or by the issuer&#146;s location, size, market capitalization or industry sector. The Fund may have none, some or all of its assets invested in each asset class in relative proportions that change over time based upon market and economic conditions. Subject to liquidity and diversification limits, the Fund also may invest up to 25% of its total assets in precious metals. </font><br/><br/><font style="font-family:Times New Roman" size="2">Generally, in determining whether to sell a security, WRIMCO considers many factors, which may include a deterioration in a company&#146;s fundamentals caused by global-specific factors such as geo-political landscape changes, regulatory or currency changes, or increased competition, as well as company-specific factors, such as reduced pricing power, diminished market opportunity, or increased competition. WRIMCO also may sell a security if the price of the security reaches what WRIMCO believes is fair value, to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font><br/><br/><font style="font-family:Times New Roman" size="2">WRIMCO may, when consistent with the Fund&#146;s investment objective, seek to manage exposure to certain securities, companies, sectors, markets, foreign currencies and/or precious metals and seek to hedge certain event risks on positions held by the Fund. In an effort to manage exposure to companies, sectors or equity markets, WRIMCO may utilize various instruments including, but not limited to, the following: futures contracts, both long and short positions on foreign and U.S. equity indices; total return swaps; credit default swaps; and options contracts, both written and purchased, on foreign and U.S. equity indices and/or on individual equity securities. In seeking to manage foreign currency exposure, WRIMCO may utilize forward contracts and option contracts, both written and purchased, either to increase or decrease exposure to a given currency. In seeking to manage the Fund&#146;s exposure to precious metals, WRIMCO may utilize futures contracts, both long and short positions, as well as options contracts, both written and purchased, on precious metals. </font><br/><br/><font style="font-family:Times New Roman" size="2">WRIMCO may reduce the Fund&#146;s net equity exposure by selling, among other instruments, combined futures and option positions, and may effect short sales of individual securities and/or exchange-traded funds (ETFs) or take long positions in inverse ETFs. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br/><br/> <font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br/><br/> <font style="font-family:Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br/><br/> <font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 42% of the average value of its portfolio. </font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund).</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsInternationalGrowthFundBarChart column period compact * ~</div> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br/><br/><font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br/><br/><font style="font-family:Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br/><br/><font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> <font style="font-family:Times New Roman" size="2">888.WADDELL</font> 0.007 0.007 0.007 0.007 0.0025 0.01 0.01 0 0.0045 0.0091 0.0063 0.0024 0.014 0.0261 0.0233 0.0094 <font style="font-family:Times New Roman" size="2"><u>www.waddell.com</u></font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). </font> <font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future.</font> <font style="font-family:Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> <font style="FONT-FAMILY: Times New Roman" size="2"><u>www.waddell.com</u></font> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future.</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsInternationalGrowthFund column period compact * ~</div> <font style="font-family:Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> <font style="font-family:ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. <br/><br/>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> <font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> 709 664 236 96 <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 21.09% (the second quarter of 2009) and the lowest quarterly return was -19.88% (the third quarter of 2008). The Class A return for the year through September 30, 2012 was 13.03%.</font> 993 1111 727 300 <font style="font-family:Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. </font> 1297 1485 1245 520 2158 2649 2666 1155 <font style="FONT-FAMILY: Times New Roman" size="2"> As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Company Risk.</font> <font style="FONT-FAMILY: Times New Roman" size="2">A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company.</font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Growth Stock Risk.</font> <font style="font-family:Times New Roman" size="2"> Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general.</font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Management Risk.</font> <font style="font-family:Times New Roman" size="2"> Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Market Risk.</font> <font style="font-family:Times New Roman" size="2"> Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Mid Size Company Risk.</font> <font style="font-family:Times New Roman" size="2"> Securities of mid capitalization companies may be more vulnerable to adverse developments than those of large companies due to such companies&#146; limited product lines, limited markets and financial resources and dependence upon a relatively small management group. Securities of mid capitalization companies may be more volatile and less liquid than the stocks of larger companies and may be more affected than other types of stocks by the underperformance of a sector or during market downturns.</font></li></ul> <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment.</font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="font-family:Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> 0.118 <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Foreign Exposure Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. The securities of many companies may have significant exposure to foreign markets as a result of the company&#146;s products or services in those foreign markets. As a result, a company&#146;s domicile and/or the markets in which the company&#146;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#146;s products or services are sold. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Growth Stock Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Holdings Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. The Fund typically holds a small number of stocks (generally 40 to 60). As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund&#146;s NAV than it would if the Fund invested in a larger number of securities. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Large Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2"> Management Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Market Risk</font><font style="font-family:Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely </font> <font style="font-family:Times New Roman" size="2">affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Tax-Managed Strategy Risk</font><font style="font-family:Times New Roman" size="2">. Tax-management strategies may alter investment decisions and affect portfolio holdings, when compared to those of non-tax-managed mutual funds. Market conditions may limit the Fund&#146;s ability to generate tax losses or to generate dividend income that, as of the date of this Prospectus, is taxed at favorable Federal income tax rates. In addition, the Fund&#146;s tax-managed strategy may cause the Fund to hold a security in order to achieve more favorable tax treatment or to sell a security in order to realize tax losses, which could result in losses that exceed any benefits of the tax-managed strategy. The Fund&#146;s ability to utilize various tax-management techniques may be curtailed or eliminated in the future by tax legislation or regulation. </font></li></ul><font style="font-family:Times New Roman" size="2">Notwithstanding the Fund&#146;s use of tax-management investment strategies, the Fund may have taxable income and may realize net capital gains from time to time. In addition, investors purchasing Fund shares when the Fund has large undistributed realized net capital gains could receive a significant part of the purchase price of their shares back as a taxable capital gain distribution. Over time, securities with unrealized gains may comprise a substantial portion of the Fund&#146;s assets. As well, state or Federal tax laws or regulations may be amended at any time and may include changes to applicable tax rates or capital gain holding periods that may be adverse to the Fund&#146;s shareholders. </font> <font style="font-family:Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds.</font> 0.1327 0.1575 0.1678 -0.3704 0.1871 100000 0.1647 -0.0513 <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Company Risk</font><font style="font-family:Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Foreign Exposure Risk</font><font style="font-family:Times New Roman" size="2">. The securities of many companies may have significant exposure to foreign markets as a result of the company&#146;s products or services in those foreign markets. As a result, a company&#146;s domicile and/or the markets in which the company&#146;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#146;s products or services are sold. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Growth Stock Risk</font><font style="font-family:Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Holdings Risk</font><font style="font-family:Times New Roman" size="2">. The Fund typically holds a small number of stocks (generally 45 to 60), and the Fund&#146;s portfolio managers also tend to invest a significant portion of the Fund&#146;s total assets in a limited number of stocks. As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund&#146;s net asset value than it would if the Fund invested in a larger number of securities or if the Fund&#146;s portfolio managers invested a greater portion of the Fund&#146;s total assets in a larger number of stocks. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Large Company Risk</font><font style="font-family:Times New Roman" size="2">. Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Management Risk</font><font style="font-family:Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Market Risk</font><font style="font-family:Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li></ul> <font style="FONT-FAMILY: Times New Roman" size="2"> The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br/><br/><font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br/><br/><font style="font-family:Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br/><br/><font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment.</font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund).</font> <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br /><br /><font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br /><br /><font style="font-family:Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br /><br /><font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 14.45% (the fourth quarter of 2011) and the lowest quarterly return was -22.08% (the fourth quarter of 2008). The Class A return for the year through September 30, 2012 was 13.22%.</font> 709 264 <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 236 96 <font style="font-family:Times New Roman" size="2"> 888.WADDELL</font> 2012-09-30 993 811 727 300 0.1303 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> 1297 1385 1245 520 2009-06-30 0.2109 2158 <font style="font-family:Times New Roman" size="2"> <u>www.waddell.com</u></font> 2649 2666 1155 <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> 2008-09-30 -0.1988 <font style="font-family:Times New Roman" size="2"> The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future.</font> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Commodities Risk</font><font style="font-family:Times New Roman" size="2">. Commodity trading, including trading in precious metals, is generally considered speculative because of the significant potential for investment loss. Among the factors that could affect the value of the Fund&#146;s investments in commodities are cyclical economic conditions, sudden political events and adverse international monetary policies. Markets for commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Also, the Fund may pay more to store and accurately value its commodity holdings than it does with its other portfolio investments. Moreover, under the Federal tax law, the Fund may not derive more than 10% of its annual gross income from gains resulting from selling commodities (and other non-qualifying income). Accordingly, the Fund may be required to hold its commodities or sell them at a loss, or to sell portfolio securities at a gain, when for investment reasons it would not otherwise do so. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Company Risk</font><font style="font-family:Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Credit Risk</font><font style="font-family:Times New Roman" size="2">. An issuer of a fixed-income obligation may not make payments on the obligation when due or may default on its obligation. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Derivatives Risk</font><font style="font-family:Times New Roman" size="2">. The use of derivatives presents several risks, including the risk that these instruments may change in value in a manner that adversely affects the Fund&#146;s NAV and the risk that fluctuations in the value of the derivatives may not correlate with securities markets or the underlying asset upon which the derivative&#146;s value is based. Moreover, some derivatives are more sensitive to interest rate changes and market price fluctuations than others. To the extent the judgment of WRIMCO as to certain anticipated price movements is incorrect, the risk of loss may be greater than if the derivative technique(s) had not been used. Derivatives also may be subject to counterparty risk, which includes the risk that a loss may be sustained by the Fund as a result of the insolvency or bankruptcy of, or other non-compliance by, another party to the transaction. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Emerging Market Risk</font><font style="font-family:Times New Roman" size="2">. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristic of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Foreign Currency Risk</font><font style="font-family:Times New Roman" size="2">. Foreign securities may be denominated in foreign currencies. The value of the Fund&#146;s investments, as measured in U.S. dollars, may be unfavorably affected by changes in foreign currency exchange rates and exchange control regulations. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Foreign Exposure Risk</font><font style="font-family:Times New Roman" size="2">. The securities of many companies may have significant exposure to foreign markets as a result of the company&#146;s products or services in those foreign markets. As a result, a company&#146;s domicile and/or the markets in which the company&#146;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#146;s products or services are sold. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Foreign Securities Risk</font><font style="font-family:Times New Roman" size="2">. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that may not be associated with the U.S. markets and that could affect the Fund&#146;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse foreign tax consequences; different and/or less stringent financial reporting standards; custody; and settlement delays. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Growth Stock Risk</font><font style="font-family:Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Interest Rate Risk</font><font style="font-family:Times New Roman" size="2">. A rise in interest rates may cause a decline in the value of the Fund&#146;s securities, especially bonds with longer maturities. A decline in interest rates may cause the Fund to experience a decline in its income. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Investment Company Securities Risk</font><font style="font-family:Times New Roman" size="2">. Investment in other investment companies typically reflects the risk of the types of securities in which the investment companies invest. Investments in exchange-traded funds (ETFs) and closed-end funds are subject to the additional risk that shares of the fund may trade at a premium or discount to their NAV per share. When the Fund invests in another investment company, shareholders of the Fund bear their proportionate share of the other investment company&#146;s fees and expenses as well as their share of the Fund&#146;s fees and expenses. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Large Company Risk</font><font style="font-family:Times New Roman" size="2">. Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Low-Rated Securities Risk</font><font style="font-family:Times New Roman" size="2">. In general, low-rated debt securities (commonly referred to as &#147;high yield&#148; or &#147;junk&#148; bonds) offer higher yields due to the increased risk that the issuer will be unable to meet its obligations on interest or principal payments at the time called for by the debt instrument. For this reason, these bonds are considered speculative and could significantly weaken the Fund&#146;s returns. In adverse economic or other circumstances, issuers of these low-rated securities and obligations are more likely to have difficulty making principal and interest payments than issuers of higher-rated securities and obligations. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Management Risk</font><font style="font-family:Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="font-family:Times New Roman" size="2"></font><font style="font-family:ARIAL" size="2">Market Risk</font><font style="font-family:Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund.</font></li></ul> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment.</font> <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> <font style="FONT-FAMILY: Times New Roman" size="2"><u>www.waddell.com</u></font> <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 70% of the average value of its portfolio. </font> <font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. </font> 0.7 <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 14.72% (the third quarter of 2007) and the lowest quarterly return was -21.64% (the fourth quarter of 2008). The Class A return for the year through September 30, 2012 was 11.88%.</font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 13.80% (the second quarter of 2009) and the lowest quarterly return was -18.37% (the fourth quarter of 2008). The Class A return for the year through September 30, 2012 was 14.22%.</font> <font style="FONT-FAMILY: Times New Roman" size="2">Waddell &amp; Reed Advisors Science and Technology Fund invests primarily in the equity securities of science and technology companies around the globe. Under normal circumstances, the Fund invests at least 80% of its net assets in securities of science or technology companies. Such companies may include companies that, in the opinion of Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, derive a competitive advantage by the application of scientific or technological developments or discoveries to grow their business or increase their competitive advantage. Science and technology companies are companies whose products, processes or services, in the opinion of WRIMCO, are being or are expected to be significantly benefited by the use or commercial application of scientific or technological developments or discoveries. The Fund may also invest in companies that utilize science and/or technology as an agent of change to significantly enhance their business opportunities. The Fund may invest in securities issued by companies of any size, and may invest without limitation in foreign securities, including securities of issuers within emerging markets. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">WRIMCO typically emphasizes growth potential in selecting stocks; that is, WRIMCO seeks companies in which earnings are likely to grow faster than the economy. WRIMCO aims to identify strong secular trends within industries and then applies a largely bottom-up stock selection process by considering a number of factors in selecting securities for the Fund&#146;s portfolio. These may include but are not limited to a company&#146;s growth potential, earnings potential, quality of management, financial statements, industry position/market size potential and applicable economic and market conditions. The Fund typically holds a small number of stocks (generally 45 to 65). </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">Many companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to additional foreign markets through investments in these companies. </font><br /><br /><font style="FONT-FAMILY: Times New Roman" size="2">Generally, in determining whether to sell a security, WRIMCO uses the same type of analysis that it uses in buying securities in order to determine whether the security has ceased to offer significant growth potential, has become overvalued and/or whether the company prospects of the issuer have deteriorated due to a change in management, change in strategy and/or a change in its financial characteristics. WRIMCO may also sell a security to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsSmallCapFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsSmallCapFund column period compact * ~</div> -0.1642 0.2496 0.117 0.1028 0.067 0.2532 -0.3493 0.314 0.1394 -0.0193 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsSmallCapFund column period compact * ~</div> -0.0757 -0.0757 -0.0492 -0.0671 -0.0283 0.0245 0.0244 0.021 0.0252 0.0274 0.0447 0.0447 0.039 0.0411 0.0411 0.0264 <font style="font-family:Times New Roman" size="2"> The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown.</font> -0.0191 0.025 0.0096 0.026 0.0194 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsSmallCapFund column period compact * ~</div> <font style="font-family:Times New Roman" size="2"> After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> -0.2041 0.3013 <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 0.0558 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsSmallCapFundBarChart column period compact * ~</div> 0.1518 0.027 0.279 -0.3951 2012-09-30 0.2561 0.1322 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> 0.1356 2011-12-31 0.0223 0.1445 <font style="font-family:Times New Roman" size="2"> Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> 2008-12-31 -0.2208 <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsSmallCapFund column period compact * ~</div> <font style="font-family:Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 2012-09-30 0.1188 <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of broad-based securities market indices and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br/><br/><font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br/><br/><font style="font-family:Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br/><br/><font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> -0.0638 -0.0908 -0.0007 -0.0481 -0.015 -0.0025 -0.0165 -0.044 0.0546 0.0391 0.0465 0.0543 0.057 0.0717 0.0244 0.0219 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> <font style="font-family:Times New Roman" size="2">Waddell &amp; Reed Advisors Value Fund seeks to achieve its objective by investing in the common stocks of primarily large capitalization companies that Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, believes are undervalued, trading at a significant discount relative to the intrinsic value of the company as estimated by WRIMCO and/or are out of favor in the financial markets but have a favorable outlook for capital appreciation. Although the Fund primarily invests in securities issued by large capitalization companies (typically, companies with market capitalizations of at least $10 billion at the time of acquisition), it may invest in securities issued by companies of any size. The Fund seeks to be diversified across economic sectors in an effort to manage risk, and to prevent excess volatility.<br/><br/>To identify securities for the Fund, WRIMCO primarily utilizes fundamental, bottom-up research while considering a top-down (assess the market environment) and quantitative analysis. The estimated intrinsic value of companies is primarily determined by WRIMCO based on cash flow generation, but other valuation factors are also considered, such as price to earnings and price to book value. WRIMCO also considers a company&#146;s asset growth, changes in share count, and changes in working capital. The Fund emphasizes companies which may have a clearly identifiable catalyst that WRIMCO believes will help the company achieve its estimated intrinsic value. The Fund typically holds a small number of stocks (generally 35 to 45).<br/><br/>Many U.S. companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to foreign markets through investments in these companies.<br/><br/>WRIMCO will typically sell a stock when, in WRIMCO&#146;s opinion, it reaches an acceptable price, its fundamental characteristics have changed or it has performed below WRIMCO&#146;s expectations. WRIMCO also may sell a security to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> 0.0625 0.0546 0.0547 0.0567 0.0582 0.0738 0.0529 0.0436 <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> 2007-09-30 0.1472 <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of broad-based securities market indices and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund).</font> <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> 2008-12-31 -0.2164 <font style="FONT-FAMILY: Times New Roman" size="2"><u>www.waddell.com</u></font> <font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future.</font> 0.007 0.007 0.007 0.007 <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> 0.0025 0.01 0.01 0 0.0027 0.0043 0.0064 0.0021 -0.0365 -0.0365 -0.0237 -0.0299 0.0115 0.0252 0.0122 0.0234 0.0213 0.0091 0.0264 -0.0191 <font style="font-family:Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> 0.0124 0.0067 0.0107 0.011 0.0134 0.0281 0.0324 0.0275 0.0283 0.0263 0.0273 0.0423 0.025 0.0096 <font style="FONT-FAMILY: Times New Roman" size="5">Waddell &amp; Reed Advisors Energy Fund</font> 0.026 0.0194 <font style="font-family:ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 15.73% (the third quarter of 2005) and the lowest quarterly return was -19.34% (the third quarter of 2011). The Class A return for the year through September 30, 2012 was 13.48%.</font> <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li><font style="font-family:ARIAL" size="2">Catalyst Risk.</font><font style="FONT-FAMILY: Times New Roman" size="2"> Investing in companies in anticipation of a catalyst carries the risk that certain of such catalysts may not happen or the market may react differently than expected to such catalysts, in which case the Fund may experience losses. </font></li></ul><ul type="square"><li><font style="font-family:ARIAL" size="2">Company Risk.</font><font style="FONT-FAMILY: Times New Roman" size="2"> A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li></ul><ul type="square"><li><font style="font-family:ARIAL" size="2">Foreign Exposure Risk.</font><font style="FONT-FAMILY: Times New Roman" size="2"></font><font style="FONT-FAMILY: Times New Roman" size="2"> The securities of many companies may have significant exposure to foreign markets as a result of the company&#146;s products or services in those foreign markets. As a result, a company&#146;s domicile and/or the markets in which the company&#146;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#146;s products or services are sold.</font></li></ul><ul type="square"><li><font style="font-family:ARIAL" size="2">Holdings Risk.</font><font style="FONT-FAMILY: Times New Roman" size="2"> The Fund typically holds a small number of stocks (generally 35 to 45). As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund&#146;s NAV than it would if the Fund invested in a larger number of securities.</font></li></ul><ul type="square"><li><font style="font-family:ARIAL" size="2">Large Company Risk.</font><font style="FONT-FAMILY: Times New Roman" size="2"> Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies.</font></li></ul><ul type="square"><li><font style="font-family:ARIAL" size="2">Management Risk.</font><font style="FONT-FAMILY: Times New Roman" size="2"> Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds.</font></li></ul><ul type="square"><li><font style="font-family:ARIAL" size="2">Market Risk.</font><font style="FONT-FAMILY: Times New Roman" size="2"> Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li></ul><ul type="square"><li><font style="font-family:ARIAL" size="2">Value Stock Risk.</font><font style="FONT-FAMILY: Times New Roman" size="2"> Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of WRIMCO, undervalued. The value of a security believed by WRIMCO to be undervalued may never reach what is believed to be its full value, or such security&#146;s value may decrease.</font></li></ul> <font style="font-family:Times New Roman" size="2">To seek to provide capital growth and appreciation. </font> <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment.</font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> 0.0328 0.1093 0.1304 0.2367 0.2026 <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> 0.4361 -0.2593 0.2491 <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> 0.089 -0.0826 -0.1059 -0.1073 -0.0664 -0.0987 -0.0596 -0.0476 0.015 0.0285 <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. <br/><br/>After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period.<br/><br/>Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. <br/><br/>The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance.</font> -0.0189 -0.0208 -0.0156 -0.0193 -0.016 -0.0034 -0.0002 <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> 0.0037 <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 22% of the average value of its portfolio. </font> 0.0466 0.0445 0.0409 0.0438 0.0448 0.0579 0.0552 0.0611 <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> <font style="font-family:ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br/><br/><font style="font-family:ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> -0.1353 -0.1368 -0.0853 -0.1274 -0.0899 -0.0794 0.0785 0.0784 0.0021 0.0007 0.0211 -0.0575 692 637 0.0458 216 0.0303 0.0356 0.0476 0.0497 0.0617 93 0.0668 0.065 0.0182 0.0136 -0.0025 0.01 940 1030 667 290 1207 1350 -0.2757 1144 504 0.0919 0.079 0.078 0.0887 0.0893 0.1022 0.0589 0.3386 0.0578 0.0219 0.0185 0.0292 0.0607 0.1927 1967 2396 2462 1120 0.1165 0.0886 0.1356 -0.3754 0.4907 0.3175 -0.0067 692 237 216 93 940 730 667 290 1207 1250 1144 504 <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 22.24% (the second quarter of 2009) and the lowest quarterly return was -23.02% (the fourth quarter of 2008). The Class A return for the year through September 30, 2012 was 9.49%.</font> 1967 2396 2462 1120 2003-07-01 2003-07-01 2003-07-01 2003-07-01 2003-07-01 2003-07-01 <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund).</font> 0.0575 0 0 0 100000 <font style="font-family:Times New Roman" size="2"> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds.</font> <font style="FONT-FAMILY: Times New Roman" size="2"> <u>www.waddell.com</u> </font> 0.01 0.05 0.01 0 0.0858 0.0338 0.0212 -0.0216 -0.0106 -0.0336 -0.0287 0.0332 0.0268 0.0285 0.0329 <font style="FONT-FAMILY: Times New Roman" size="2"> 888.WADDELL </font> 0.0359 0.0486 0.0665 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsInternationalGrowthFund column period compact * ~</div> <font style="FONT-FAMILY: Times New Roman" size="2"> The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. </font> 0.0474 0.0417 0.0406 0.46 0.0429 0.0436 0.0568 <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Concentration Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Because the Fund invests more than 25% of its total assets in the science and technology industry, the Fund&#146;s performance may be more susceptible to a single economic, regulatory or technological occurrence than a fund that does not concentrate its investments in this industry. Securities of companies within specific industries or sectors of the economy may periodically perform differently than the overall market. In addition, the Fund&#146;s performance may be more volatile than an investment in a portfolio of broad market securities and may underperform the market as a whole, due to the limited number of issuers of science and technology related securities. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Emerging Market Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristic of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Foreign Exposure Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. The securities of many companies may have significant exposure to foreign markets as a result of the company&#146;s products or services in those foreign markets. As a result, a company&#146;s domicile and/or the markets in which the company&#146;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#146;s products or services are sold. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Foreign Securities Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that may not be associated with the U.S. markets and that could affect the Fund&#146;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse foreign tax consequences; different and/or less stringent financial reporting standards; custody; and settlement delays. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate.</font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Growth Stock Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Holdings Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. The Fund typically holds a small number of stocks (generally 45 to 65), and the Fund&#146;s portfolio manager also tends to invest a significant portion of the Fund&#146;s total assets in a limited number of stocks. As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund&#146;s net asset value than it would if the Fund invested in a larger number of securities or if the Fund&#146;s portfolio manager invested a greater portion of the Fund&#146;s total assets in a larger number of stocks. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Large Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Liquidity Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Generally, a security is liquid if the Fund is able to sell the security at a fair price within a reasonable time. Liquidity is generally related to the market trading volume for a particular security. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Less liquid securities are more difficult to dispose of at their recorded values and are subject to increased spreads and volatility. Also, the Fund may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Management Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Market Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Mid Size Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Securities of mid capitalization companies may be more vulnerable to adverse developments than those of large companies due to such companies&#146; limited product lines, limited markets and financial resources and dependence upon a relatively small management group. Securities of mid capitalization companies may be more volatile and less liquid than the stocks of larger companies and may be more affected than other types of stocks by the underperformance of a sector or during market downturns. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Science and Technology Industry Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Investment risks associated with investing in science and technology securities, in addition to other risks, include: operating in rapidly changing fields, abrupt or erratic market movements, limited product lines, markets or financial resources, management that is dependent on a limited number of people, short product cycles, aggressive pricing of products and services, new market entrants and obsolescence of existing technology. </font></li><li style="margin-left:-20px"><font style="FONT-FAMILY: ARIAL" size="2">Small Company Risk</font><font style="FONT-FAMILY: Times New Roman" size="2">. Equity securities of small capitalization companies are subject to greater price volatility, lower trading volume and less liquidity due to, among other things, such companies&#146; small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations and such securities may be more affected than other types of stocks by the underperformance of a sector or during market downturns. In some cases, there could be difficulties in selling securities of small capitalization companies at the desired time. </font></li></ul> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="font-family:Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> 0.0594 <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsInternationalGrowthFund column period compact * ~</div> <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> -0.1551 0.2448 0.1428 0.0396 <font style="FONT-FAMILY: Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds.</font> 0.166 0.0169 -0.3433 0.2604 0.1806 100000 -0.0753 <font style="FONT-FAMILY: Times New Roman" size="5">Waddell & Reed Advisors Continental Income Fund </font> 2012-09-30 0.0949 2009-06-30 <font style="FONT-FAMILY: Arial" size="3"><b>Objective</b></font> 0.2224 <font style="font-family:Times New Roman" size="2">To seek to provide total return through a combination of capital appreciation and current income. </font> 2008-12-31 -0.2302 <font style="FONT-FAMILY: Arial" size="3"><b>Fees and Expenses </b></font> <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment.</font> 0.0085 0.0085 0.0085 0.0085 0.0025 0.01 0.01 0 <font style="font-family:Times New Roman" size="2">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. More information about these and other discounts is available from your financial professional and in the &#147;Sales Charge Reductions&#148; section on page 78 of the Fund&#146;s prospectus and in the &#147;Purchase, Redemption and Pricing of Shares&#148; section on page 87 of the Fund&#146;s statement of additional information (SAI). </font> 0.0058 0.0104 0.0065 0.0026 0.0168 0.0289 0.025 0.0111 <font style="FONT-FAMILY: ARIAL" size="1">Shareholder Fees <br/><br/>(fees paid directly from your investment)</font> <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 19.83% (the third quarter of 2009) and the lowest quarterly return was -20.00% (the third quarter of 2011). The Class A return for the year through September 30, 2012 was 14.90%.</font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund).</font> <font style="FONT-FAMILY: ARIAL" size="1">Annual Fund Operating Expenses </font> <br/><br/><font style="FONT-FAMILY: ARIAL" size="1">(expenses that you pay each year as a % of the value of your investment)</font> <font style="FONT-FAMILY: Arial" size="3"><b>Portfolio Turnover </b></font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsContinentalIncomeFund column period compact * ~</div> <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> <font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> <font style="font-family:Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> <font style="FONT-FAMILY: Arial" size="3"><b>Example </b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> <font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown.</font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> <font style="font-family:Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> <font style="FONT-FAMILY: Times New Roman" size="2"><u>www.waddell.com</u></font> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> 736 692 253 113 <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> 1074 1195 779 353 1435 1623 1331 612 <font style="font-family:Times New Roman" size="2">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund&#146;s performance. During the most recent fiscal year, the Fund&#146;s portfolio turnover rate was 37% of the average value of its portfolio. </font> <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> 2448 <font style="font-family:Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> 2927 2836 1352 <font style="FONT-FAMILY: Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsTaxManagedEquityFund column period compact * ~</div> <font style="font-family:ARIAL" size="1"><i>This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. </i></font><br /><br /><font style="font-family:ARIAL" size="1"><i>The example assumes that you invest $10,000 in the particular class of shares of the Fund for the time periods indicated and then redeem all your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </i></font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsContinentalIncomeFund column period compact * ~</div> -0.1285 -0.1298 -0.0813 -0.1223 -0.0831 -0.0712 0.0039 -0.0224 -0.0283 -0.032 -0.0234 -0.0286 -0.0258 -0.0122 -0.0264 -0.0268 0.0287 0.0389 0.0343 0.0204 0.0194 0.0235 <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 0.0192 0.0208 <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> 2012-09-30 736 292 253 113 2009-06-30 1074 895 779 353 0.1422 0.138 <font style="FONT-FAMILY: Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> -0.1837 1435 1523 1331 <font style="font-family:Times New Roman" size="2">Waddell &amp; Reed Advisors Continental Income Fund seeks to achieve its objective by investing primarily in a mix of stocks, debt securities and short-term instruments, depending on market conditions. Regarding its equity investments, the Fund invests primarily in medium to large, well-established companies that usually issue dividend-paying securities. The Fund owns common stocks in order to provide possible appreciation of capital and some dividend income. In general, the Fund invests a portion of its total assets in either debt securities or preferred stocks, or both, in order to provide income and relative stability of capital. The Fund ordinarily invests at least 25% of its total assets in fixed-income securities. The majority of the Fund&#146;s debt securities are either U.S. government securities or investment-grade corporate bonds, including bonds rated BBB- or higher by Standard &amp; Poor&#146;s, a division of The McGraw-Hill Companies, Inc. (S&amp;P), or comparably rated by another nationally recognized statistical rating organization (NRSRO) or, if unrated, determined by Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, to be of comparable quality. The Fund has no limitations on the range of maturities of the debt securities in which it may invest, or on the size of companies in which it may invest. </font><br /><br /><font style="font-family:Times New Roman" size="2">In selecting equity securities for the Fund, WRIMCO follows a core investing strategy and seeks companies that it believes possess attractive business economics, are in a strong financial condition and are selling at attractive valuations, both on a relative and an absolute basis. WRIMCO also considers a company&#146;s potential for dividend growth, its growth and profitability opportunities and sustainability, its relative strength in earnings, its management, improving fundamentals and valuation, its balance sheet, its stock price value, and the condition of the respective industry. In selecting debt securities for the Fund, WRIMCO generally seeks high-quality securities with minimal credit risk. </font><br /><br /><font style="font-family:Times New Roman" size="2">Many U.S. companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to foreign markets through investments in these companies. </font><br /><br /><font style="font-family:Times New Roman" size="2">Generally, in determining whether to sell an equity security or a debt security, WRIMCO uses the same analysis as identified above in order to determine if the equity security is still undervalued or has met its anticipated price. In determining whether to sell a debt security, WRIMCO will consider whether the security continues to maintain its minimal credit risk. WRIMCO may also sell a security if the security ceases to produce income, to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> 612 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsContinentalIncomeFund column period compact * ~</div> 2448 2927 2836 1352 <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> <font style="FONT-FAMILY: Times New Roman" size="2">Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsTaxManagedEquityFund column period compact * ~</div> <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Strategies </b></font> <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsTaxManagedEquityFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsTaxManagedEquityFund column period compact * ~</div> <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br/><br/><font style="FONT-FAMILY: Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> <font style="font-family:Times New Roman" size="2">Waddell &amp; Reed Advisors Energy Fund seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in securities of companies within the energy sector, which includes all aspects of the energy industry, such as exploration, discovery, production, distribution or infrastructure of energy and/or alternative energy sources. </font><br/><br/><font style="font-family:Times New Roman" size="2">These companies may include, but are not limited to, oil companies, oil and gas exploration companies, natural gas pipeline companies, refinery companies, energy conservation companies, coal, transporters, utilities, alternative energy companies and innovative energy technology companies. The Fund also may invest in companies that are not within the energy sector that are engaged in the development of products and services to enhance energy efficiency for the users of those products and services. The Fund invests in a blend of value and growth companies domiciled throughout the world, including, potentially, companies domiciled or traded in emerging markets. The Fund may invest up to 100% of its total assets in foreign securities. </font><br/><br/><font style="font-family:Times New Roman" size="2">After conducting a top-down market analysis of the energy industry and then identifying trends and sectors, Waddell &amp; Reed Investment Management Company (WRIMCO), the Fund&#146;s investment manager, uses a research-oriented, bottom-up investment approach when selecting securities for the Fund, focusing on company fundamentals and growth prospects. In general, the Fund emphasizes companies that WRIMCO believes are strongly managed and can generate above-average capital growth and appreciation. </font><br/><br/><font style="font-family:Times New Roman" size="2">Many U.S. companies have diverse operations, with products or services in foreign markets. Therefore, the Fund will have an indirect exposure to foreign markets through investments in these companies. </font><br/><br/><font style="font-family:Times New Roman" size="2">Generally, in determining whether to sell a security, WRIMCO uses the same type of analysis that it uses in buying securities to determine whether the security has ceased to offer significant growth potential, has become undervalued and/or whether the prospects of the issuer have deteriorated. WRIMCO may also sell a security to reduce the Fund&#146;s holding in that security, to take advantage of more attractive investment opportunities or to raise cash. </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsVanguardFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsTaxManagedEquityFundBarChart column period compact * ~</div> <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsTaxManagedEquityFund column period compact * ~</div> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsVanguardFund column period compact * ~</div> <font style="font-family:Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> -0.2678 0.3201 0.162 0.172 0.0757 <font style="font-family:Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> 0.2422 -0.3325 0.4273 0.1216 -0.0616 <font style="font-family:Times New Roman" size="2">Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsVanguardFund column period compact * ~</div> <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 2012-09-30 0.1348 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> 2005-09-30 0.1573 <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 14.79% (the second quarter of 2009) and the lowest quarterly return was -18.20% (the first quarter of 2008). The Class A return for the year through September 30, 2012 was 26.15%.</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsVanguardFund column period compact * ~</div> <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> 2011-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsNewConceptsFund column period compact * ~</div> -0.1934 <font style="FONT-FAMILY: Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsNewConceptsFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsVanguardFundBarChart column period compact * ~</div> <font style="FONT-FAMILY: Times New Roman" size="2">Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period.</font> <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 2012-09-30 0.2615 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> 2009-06-30 0.1479 <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> 2008-03-31 -0.182 <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsVanguardFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsNewConceptsFund column period compact * ~</div> <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Company Risk</font><font style="font-family:Times New Roman" size="2"> A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Credit Risk</font><font style="font-family:Times New Roman" size="2">. An issuer of a fixed-income obligation may not make payments on the obligation when due or may default on its obligation. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Foreign Exposure Risk</font><font style="font-family:Times New Roman" size="2">. The securities of many companies may have significant exposure to foreign markets as a result of the company&#146;s products or services in those foreign markets. As a result, a company&#146;s domicile and/or the markets in which the company&#146;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#146;s products or services are sold. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Growth Stock Risk</font><font style="font-family:Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Interest Rate Risk</font><font style="font-family:Times New Roman" size="2">. A rise in interest rates may cause a decline in the value of the Fund&#146;s securities, especially bonds with longer maturities. A decline in interest rates may cause the Fund to experience a decline in its income. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Large Company Risk</font><font style="font-family:Times New Roman" size="2">. Large capitalization companies may go in and out of favor based on market and economic conditions. Large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Although the securities of larger companies may be less volatile than those of companies with smaller market capitalizations, returns on investments in securities of large capitalization companies could trail the returns on investments in securities of smaller companies. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Management Risk</font><font style="font-family:Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Market Risk</font><font style="font-family:Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Mid Size Company Risk</font><font style="font-family:Times New Roman" size="2">. Securities of mid capitalization companies may be more vulnerable to adverse developments than those of large companies due to such companies&#146; limited product lines, limited markets and financial resources and dependence upon a relatively small management group. Securities of mid capitalization companies may be more volatile and less liquid than the stocks of larger companies and may be more affected than other types of stocks by the underperformance of a sector or during market downturns.</font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Reinvestment Risk</font><font style="font-family:Times New Roman" size="2">. A decline in interest rates may cause issuers to prepay higher-yielding bonds held by the Fund, resulting in the Fund reinvesting in securities with lower yields, which may cause a decline in its income. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Value Stock Risk</font><font style="font-family:Times New Roman" size="2">. Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of WRIMCO, undervalued. The value of a security believed by WRIMCO to be undervalued may never reach what is believed to be its full value, or such security&#146;s value may decrease. </font></li></ul> <font style="FONT-FAMILY: Arial" size="3"><b>Principal Investment Risks </b></font> <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. The Fund is not intended as a complete investment program. A variety of factors can affect the investment performance of the Fund and prevent it from achieving its objective. These include: </font><ul type="square"><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Company Risk</font><font style="font-family:Times New Roman" size="2">. A company may perform worse than the overall market due to specific factors, such as adverse changes to its business or investor perceptions about the company. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Concentration Risk</font><font style="font-family:Times New Roman" size="2">. Because the Fund invests more than 25% of its total assets in the energy related industry, the Fund&#146;s performance may be more susceptible to a single economic, regulatory or technological occurrence than a fund that does not concentrate its investments in this industry. Securities of companies within specific industries or sectors of the economy may periodically perform differently than the overall market. In addition, the Fund&#146;s performance may be more volatile than an investment in a portfolio of broad market securities and may underperform the market as a whole, due to the limited number of issuers of energy-related securities. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Emerging Market Risk</font><font style="font-family:Times New Roman" size="2">. Investments in countries with emerging economies or securities markets may carry greater risk than investments in more developed countries. Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and economic stability characteristic of more developed countries. Investments in securities issued in these countries may be more volatile and less liquid than securities issued in more developed countries. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Energy Industry Risk</font><font style="font-family:Times New Roman" size="2">. Investment risks associated with investing in energy securities, in addition to other risks, include price fluctuation caused by real and perceived inflationary trends and political developments, the cost assumed in complying with environmental safety regulations, demand of energy fuels, energy conservation, the success of exploration projects, and tax and other governmental regulations. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Foreign Exposure Risk</font><font style="font-family:Times New Roman" size="2">. The securities of many companies may have significant exposure to foreign markets as a result of the company&#146;s products or services in those foreign markets. As a result, a company&#146;s domicile and/or the markets in which the company&#146;s securities trade may not be fully reflective of its sources of revenue. Such securities would be subject to some of the same risks as an investment in foreign securities, including the risk that political and economic events unique to a country or region will adversely affect those markets in which the company&#146;s products or services are sold. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Foreign Securities Risk</font><font style="font-family:Times New Roman" size="2">. Investing in foreign securities involves a number of economic, financial, legal, and political considerations that may not be associated with the U.S. markets and that could affect the Fund&#146;s performance unfavorably, depending upon the prevailing conditions at any given time. Among these potential risks are: greater price volatility; comparatively weak supervision and regulation of securities exchanges, brokers and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse foreign tax consequences; different and/or less stringent financial reporting standards; custody; and settlement delays. In addition, key information about the issuer, the markets or the local government or economy may be unavailable, incomplete or inaccurate. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Growth Stock Risk</font><font style="font-family:Times New Roman" size="2">. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Management Risk</font><font style="font-family:Times New Roman" size="2">. Fund performance is primarily dependent on WRIMCO&#146;s skill in evaluating and managing the Fund&#146;s portfolio and the Fund may not perform as well as other similar mutual funds. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Market Risk</font><font style="font-family:Times New Roman" size="2">. Adverse market conditions, sometimes in response to general economic or industry news, may cause the prices of the Fund&#146;s holdings to fall as part of a broad market decline. The financial crisis in the U.S. and foreign economies over the past several years, including the European sovereign debt crisis, has resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both U.S. and foreign, and in the NAVs of many mutual funds, including to some extent the Fund. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region may adversely affect issuers in another country or region, which in turn may adversely affect securities held by the Fund. These circumstances have also decreased liquidity in some markets and may continue to do so. In addition, certain unanticipated events, such as natural disasters, terrorist attacks, war, and other geopolitical events, can have a dramatic adverse effect on securities held by the Fund. </font></li><li style="margin-left:-20px"><font style="font-family:ARIAL" size="2">Value Stock Risk</font><font style="font-family:Times New Roman" size="2">. Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of WRIMCO, undervalued. The value of a security believed by WRIMCO to be undervalued may never reach what is believed to be its full value, or such security&#146;s value may decrease. </font></li></ul> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsContinentalIncomeFundBarChart column period compact * ~</div> 2012-09-30 0.149 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> 2009-09-30 <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> 0.1983 <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsDividendOpportunitiesFund column period compact * ~</div> 2011-09-30 -0.2 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsNewConceptsFund column period compact * ~</div> <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsDividendOpportunitiesFund column period compact * ~</div> 0.1911 0.0758 0.0474 <font style="FONT-FAMILY: Arial" size="3"><b>Performance</b></font> 0.1085 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsNewConceptsFundBarChart column period compact * ~</div> 0.129 0.1445 0.1648 0.0306 <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsContinentalIncomeFund column period compact * ~</div> <font style="FONT-FAMILY: ARIAL" size="1">Chart of Year-by-Year Returns </font><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31 each year </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsNewConceptsFund column period compact * ~</div> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of broad-based securities market indices and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br /><br /><font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br /><br /><font style="font-family:Times New Roman" size="2">Performance results include the effect of expense reduction arrangements for some or all of the periods shown. If those arrangements had not been in place, the performance results for those periods would have been lower. </font><br /><br /><font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> <font style="font-family:ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 23.47% (the second quarter of 2008) and the lowest quarterly return was -33.56% (the third quarter of 2008). The Class A return for the year through September 30, 2012 was 0.58%.</font> -0.1155 -0.129 -0.0574 -0.1048 -0.0694 -0.0574 -0.0088 -0.0737 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellReedAdvisorsDividendOpportunitiesFundBarChart column period compact * ~</div> 0.0326 0.0173 0.0267 0.0319 0.0342 0.0486 0.0384 0.0248 0.0521 0.041 0.0442 0.0455 0.0462 0.0623 0.0244 0.0214 <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsDividendOpportunitiesFund column period compact * ~</div> 2008-12-31 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font><br/><br/><font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font><br/><br/><font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Current performance may be lower or higher. Please visit <u>www.waddell.com</u> or call 888.WADDELL for the Fund&#146;s updated performance. </font> 2009-09-30 0.1075 <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> -0.1139 2011-09-30 <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> 0.1177 2012-09-30 <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsAssetStrategyFund column period compact * ~</div> <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsAssetStrategyFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsAssetStrategyFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsAssetStrategyFund column period compact * ~</div> 0.37 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsDividendOpportunitiesFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellandReedAdvisorsValueFund column period compact * ~</div> <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> <font style="FONT-FAMILY: Times New Roman" size="2"><u>www.waddell.com</u></font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellandReedAdvisorsValueFund column period compact * ~</div> <font style="font-family:Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. </font> 0.42 100000 <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsAssetStrategyFund column period compact * ~</div> <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment. </font> <font style="FONT-FAMILY: Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds.</font> <font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. </font> 100000 <font style="FONT-FAMILY: Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment.</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellandReedAdvisorsValueFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellandReedAdvisorsValueFund column period compact * ~</div> 0.22 <font style="font-family:Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds. </font> <font style="FONT-FAMILY: Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). </font> 100000 <font style="font-family:Times New Roman" size="2">As with any mutual fund, the value of the Fund&#146;s shares will change, and you could lose money on your investment.</font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). </font> <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> <font style="FONT-FAMILY: Times New Roman" size="2"><u>www.waddell.com</u></font> <font style="font-family:Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellandReedAdvisorsValueFundBarChart column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellandReedAdvisorsValueFund column period compact * ~</div> <font style="FONT-FAMILY: ARIAL" size="1">The Class A return for the year through September 30, 2012</font> <font style="FONT-FAMILY: Times New Roman" size="2">888.WADDELL</font> 2012-09-30 0.0058 <font style="FONT-FAMILY: ARIAL" size="1">highest quarterly return</font> 2008-06-30 0.2347 <font style="FONT-FAMILY: ARIAL" size="1">lowest quarterly return</font> 2008-09-30 -0.3356 <font style="FONT-FAMILY: Times New Roman" size="2"><u>www.waddell.com</u></font> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsAssetStrategyFundBarChart column period compact * ~</div> <font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> <font style="font-family:Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities. </font> <font style="font-family:Times New Roman" size="2"> After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. </font> <font style="font-family:Times New Roman" size="2"> Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of a broad-based securities market index and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund).</font> 0.5248 -0.4703 0.3967 0.2227 -0.1018 <font style="FONT-FAMILY: Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. </font> -0.1534 -0.1534 -0.0997 -0.1473 -0.1087 -0.0969 0.0392 -0.0575 0.0315 0.0307 0.0268 0.0307 0.0356 0.0498 0.0486 0.0226 0.0287 0.028 0.0245 0.0266 0.0313 0.045 0.0698 0.0258 <font style="FONT-FAMILY: Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. </font> <font style="FONT-FAMILY: Times New Roman" size="2"> Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> <font style="FONT-FAMILY: Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary.</font> <font style="FONT-FAMILY: Times New Roman" size="2"> Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> <font style="font-family:ARIAL" size="1"><i>You would pay the following expenses if you did not redeem your shares: </i></font> <font style="font-family:Times New Roman" size="2">The chart does not reflect any sales charges and, if those sales charges were included, returns would be less than those shown. </font> 0.0874 0.0211 -0.0124 0.0655 -0.0025 0.0071 0.0585 0.0292 0.0381 <font style="FONT-FAMILY: ARIAL" size="1">In the period shown in the chart, the highest quarterly return was 10.75% (the third quarter of 2009) and the lowest quarterly return was -11.39% (the third quarter of 2011). The Class A return for the year through September 30, 2012 was 11.77%.</font> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsEnergyFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsEnergyFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsEnergyFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsEnergyFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsScienceandTechnologyFund column period compact * ~</div> -0.0926 -0.1948 <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualFundOperatingExpensesWaddellAndReedAdvisorsScienceandTechnologyFund column period compact * ~</div> 2006-03-01 2006-03-01 2006-03-01 2006-03-01 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleTransposedWaddellAndReedAdvisorsScienceandTechnologyFund column period compact * ~</div> 0.0575 0 0 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsScienceandTechnologyFund column period compact * ~</div> 0.01 0.05 0.01 0 0 <div style="display:none">~ http://www.waddell.com/role/ScheduleShareholderFeesWaddellAndReedAdvisorsContinentalIncomeFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsEnergyFundBarChart column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAnnualTotalReturnsWaddellAndReedAdvisorsScienceandTechnologyFundBarChart column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsScienceandTechnologyFund column period compact * ~</div> <div style="display:none">~ http://www.waddell.com/role/ScheduleAverageAnnualTotalReturnsTransposedWaddellAndReedAdvisorsEnergyFund column period compact * ~</div> 2003-07-01 2003-07-01 <font style="font-family:Times New Roman" size="2">The Fund&#146;s past performance (before and after taxes) does not necessarily indicate how it will perform in the future. </font> 100000 <font style="font-family:Times New Roman" size="2">You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in funds within Waddell &amp; Reed Advisors Funds, InvestEd Portfolios and/or Ivy Funds.</font> <font style="font-family:Times New Roman" size="2">Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> <font style="font-family:Times New Roman" size="2"> Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> <font style="font-family:Times New Roman" size="2">Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> <font style="font-family:Times New Roman" size="2">Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> <font style="font-family:Times New Roman" size="2">After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes.</font> <font style="font-family:Times New Roman" size="2">Actual after-tax returns depend on an investor&#146;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (IRAs), or to shares held by non-taxable entities.</font> <font style="font-family:Times New Roman" size="2">After-tax returns are shown only for Class A shares. After-tax returns for other Classes may vary. </font> <font style="font-family:Times New Roman" size="2"> Return After Taxes on Distributions and Sale of Fund Shares may be better than Return Before Taxes due to an assumed tax benefit from losses on a sale of the Fund&#146;s shares at the end of the period. </font> <font style="font-family:Times New Roman" size="2">The chart and table below provide some indication of the risks of investing in the Fund. The chart shows how performance has varied from year to year for Class A shares. The table shows the average annual total returns for each Class of the Fund and also compares the performance with those of broad-based securities market indices and a Lipper peer group (a universe of mutual funds with investment objectives similar to that of the Fund). </font> <font style="FONT-FAMILY: ARIAL" size="1">Average Annual Total Returns </font><br/><br/><font style="FONT-FAMILY: ARIAL" size="1">as of December 31, 2011</font> 2006-03-01 2006-03-01 2006-03-01 2006-03-01 <div style="display:none">~ http://www.waddell.com/role/ScheduleExpenseExampleNoRedemptionTransposedWaddellAndReedAdvisorsDividendOpportunitiesFund column period compact * ~</div> <font style="font-family:Times New Roman" size="2">Waddell &amp; Reed Advisors Energy Fund seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets in securities of companies within the energy sector, which includes all aspects of the energy industry, such as exploration, discovery, production, distribution or infrastructure of energy and/or alternative energy sources. </font> <font style="FONT-FAMILY: Times New Roman" size="2">Waddell &amp; Reed Advisors Science and Technology Fund invests primarily in the equity securities of science and technology companies around the globe. Under normal circumstances, the Fund invests at least 80% of its net assets in securities of science or technology companies.</font> For Class A shares, a 1% contingent deferred sales charge (CDSC) is only imposed on Class A shares that were purchased at net asset value (NAV) for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase. For Class A shares, a 1% contingent deferred sales charge (CDSC) is only imposed on Class A shares that were purchased at net asset value (NAV) for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase. For Class A shares, a 1% contingent deferred sales charge (CDSC) is only imposed on Class A shares that were purchased at net asset value (NAV) for $1 million or more that are subsequently redeemed within 12 months of purchase. For Class B shares, the CDSC declines from 5% for redemptions within the first year of purchase, to 4% for redemptions within the second year, to 3% for redemptions within the third and fourth years, to 2% for redemptions within the fifth year, to 1% for redemptions within the sixth year and to 0% for redemptions after the sixth year. For Class C shares, a 1% CDSC applies to redemptions within 12 months of purchase. 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