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A graduate of UNC Charlotte’s business school is slated to become CEO this summer of a large U.S. mutual fund company that is struggling to reverse a loss of assets under management.

Philip Sanders, 56, will succeed Henry Herrmann as CEO of Overland Park, Kan.-based Waddell & Reed Financial Inc. on Aug. 1, according to a company statement this week.

Sanders joined Waddell & Reed as a portfolio manager in 1998 after a decade in the investment management division of Bank of America Corp. He has been chief investment officer of Waddell & Reed Investment Management Co. and Ivy Investment Management Co. since 2010. He has a bachelor’s in economics from the University of Michigan and an MBA from UNC Charlotte.

Sanders had compensation of $2.98 million in 2015, making him the company’s third-highest paid executive, according to the annual proxy. He held Waddell & Reed shares valued at more than $6 million based on today’s share price. Shares have declined by more than 50% over the last year.

Waddell & Reed has suffered in recent years because of poor performance at some of its best-known funds, including Ivy Asset Strategy, which had $10 billion in assets under management on March 31, down from $36 billion in 2014, according to the Wall Street Journal. The company also has faced a shift by investors into passive index funds that do not require so-called active management.

Started in 1937, Waddell & Reed managed $95.2 billion at the end of March, from $122.9 billion a year earlier. Herrmann, 73, has been CEO since 2005.

Other well-known UNC Charlotte graduates include Lowe’s Cos. CEO Robert Niblock and former Bank of America Corp. Chief Financial Officer Joe Price.

David Mildenberg
David Mildenberg is editor of Business North Carolina. Reach him at dmildenberg@businessnc.com.
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