Fresno County (Calif.) Employees’ Retirement Association put domestic large-cap growth equity manager Waddell & Reed Financial on watch, said an audiocast of Wednesday’s board meeting.
Philip Sanders, chief investment officer and co-portfolio manager on the Waddell & Reed large-cap growth strategy, was promoted to CEO effective Aug. 1, replacing Henry J. Herrmann, who is retiring. Mr. Sanders will retain his CIO title but will no longer be directly involved with the large-cap growth equity strategy, investment consultant Verus Advisory wrote in a Wednesday letter to the pension fund board.
Mr. Sanders’ shift in responsibilities and other ongoing personnel changes at the firm resulting from a 23% decline in assets under management over the past year are behind the watch status recommendation, Verus wrote.
The $4 billion pension fund had $257 million invested in the Waddell & Reed strategy as of June 1.
Donald Kendig, retirement administrator, was not immediately available for additional information. A Waddell & Reed spokesman could not immediately be reached for comment.