Nationwide Financial said it has completed its acquisition of 17 equity and fixed-income mutual funds from HighMark Capital Management, Inc. The transaction provides Nationwide Financial’s mutual fund business, Nationwide Funds, with approximately $3.6 billion in new assets, and expands the suite of investment strategies Nationwide Funds offers financial advisors and their clients. Nationwide Funds now has more than $52 billion in assets under management. Terms of the transaction were not disclosed.
“This acquisition is another significant step to expand our mutual fund business and strengthens our role as a strategic partner to financial advisors,” said Kirt Walker, president and chief operating officer of Nationwide Financial. “Adding these funds enables Nationwide to build upon the variety of investment strategies we provide to help meet the needs of financial advisors to help their clients prepare for and live in retirement.”
Walker said the acquired mutual funds increase Nationwide’s product breadth and quality with the addition of five funds that have four or five-star ratings, and noted that several are included in model portfolios and recommended lists at their partner firms. All 17 funds will be available for trading beginning Tuesday, Sept. 17.
HighMark Capital will be the subadviser to nine of these new Nationwide Funds. The remaining eight funds will continue to be subadvised by one of three other asset managers: Bailard, Inc., Geneva Capital Management, Ltd., and Ziegler Lotsoff Capital Management, LLC. Nationwide is continuing these existing relationships.
“Since our announcement in April, the organizations have continued to provide strong value and performance to their clients while working toward a successful close of the transaction,” said Michael Spangler, president of Nationwide Funds. “We are proud to add these funds to our investment offerings and are committed to providing stability and continuity to existing and future shareholders.”
Cambridge International Partners, Inc. was engaged as financial adviser to Nationwide Financial, and Stradley Ronon Stevens & Young, LLP was retained as its legal counsel. HighMark Capital Management and Union Bank engaged Berkshire Capital Securities, LLC as their financial adviser and Bingham McCutchen, LLP as their legal counsel.
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