Waddell & Reed Financial has appointed Rick Perry as portfolio manager on two funds worth a total of $3.6 billion.

The Citywire + rated manager now runs the $2.1 billion Ivy Balanced fund and the $1.5 billion Waddell & Reed Advisors Continental Income fund, according to Securities and Exchange Commission filing.

He has joined Matthew Hekman in managing both funds.

Over the past three years that Ivy Balanced fund has returned 9.5% in comparison to the average fund in the sector which has returned 14.2% over the same period.

This past year, the fund has done slightly better but still underperformed its peer group, returning 8.2% in comparison to the average fund in its sector which returned 12.3% over the same period.  

Perry also manages the $1.2 billion Waddell & Reed Advisors Bond fund, the $250.8 million Waddell & Reed Advisors Government Securities fund and the $28.6 million Ivy Crossover Credit fund.

He joined the firm in October 2015 as a portfolio manager after leaving Aegon USA Investment Management, where he was head of investment grade bond credit and a portfolio manager on Aegon’s Investment Grade Bond and Stable Value Portfolios.

Phil Sanders, chief executive of Waddell & Reed and chief investment officer of Ivy Investments said: ‘I am confident that Rick’s diverse fixed income experience combined with Matt’s extensive equity background will prove to be a potent combination in the management of our suite of balanced products moving forward.’  

A spokesperson confirmed the contents of the filing.

Recently, RBC Capital Markets released an asset management analysis which outlines that it is cautious about Waddell & Reed due to the consistent outflows which the firm has suffered.

The wealth manager also noted that Waddell & Reed has a product set that is unlikely to adapt to the shifting industry landscape.