Nationwide Financial has entered into an agreement with HighMark Capital Management Inc. to acquire 17 equity and bond mutual funds, Nationwide announced Tuesday.
The transaction will provide Nationwide Financial’s mutual fund business with approximately $3.6 billion in new assets and enables the company to offer a wider array of investments to advisors and their clients. Terms of the deal were not disclosed.
The move fits with Nationwide’s goal of expanding its mutual fund business, according to Kirt Walker, Nationwide Financial's president and chief operating officer.
HighMark Capital, a subsidiary of Union Bank, will become the subadvisor to the new Nationwide funds that are the successors of the nine funds it currently manages. Three other asset managers subadvise eight of the 17 mutual funds: Bailard Inc., Geneva Capital Management Ltd. and Ziegler Lotsoff Capital Management LLC.
Nationwide will now have approximately $51 billion in net assets under management.