Waddell & Reed Financial has appointed Philip J. Sanders, a portfolio manager and equity analyst, as chief investment officer of Waddell & Reed Investment Management and Ivy Investment Management.

Sanders takes over the role from Michael L. Avery, who was appointed president of Waddell & Reed Financial in January.

Avery, to whom Sanders will report, has held the role of chief investment officer since 2005, and will remain active in all aspects of the company’s investment division. Avery retains his role as co-portfolio manager of Ivy Asset Strategy Fund and Waddell & Reed Advisors Asset Strategy Fund.

Sanders will maintain his portfolio management responsibilities, remaining directly involved in co-managing the company’s large cap growth product suite.

“Phil has a keen insight into our overall investment process, is an integral part of our daily investment team meetings, and brings significant experience to this role,” says Henry J. Herrmann, chairman and chief executive of Waddell & Reed Financial. “This step enables Mike to concentrate on his portfolio management responsibilities with the asset strategy funds and his expanding executive duties, while providing oversight to our investment management organisation. This is another move in support of the company’s longer term succession planning efforts.”

Sanders has 22 years of investment industry experience and 12 years with Waddell & Reed. He joined Waddell & Reed in 1998 as a vice president and portfolio manager. He has managed or co-managed, with Daniel Becker, the firm’s large cap growth product lineup for the last 12 years.