Further terms of the deal have not been disclosed, although the transaction is expected to provide the acquirer with nearly $3.6bn in new assets, as of 31 December 2013.
Following completion of the transaction, which is subject to customary regulatory and shareholder approvals, Nationwide Financial’s mutual fund business is expected to have nearly $51bn in net assets under management.
As per the agreement, HighMark Capital Management will become the sub-adviser for the successors to the nine funds that it currently manages in the form of nine new Nationwide Funds.
Remaining eight of the 17 mutual funds are sub-advised by three other asset managers including Bailard, Geneva Capital Management, and Ziegler Lotsoff Capital Management, which Nationwide wants to continue.
Based in the Philadelphia area, Nationwide Funds operates as the mutual fund business of Nationwide Financial Services.
Acting as a wholly owned subsidiary of Union Bank, HighMark Capital Management is the investment adviser to the HighMark Funds, which offers an array of mutual funds leveraging a disciplined investment process.
Cambridge International Partners and Stradley Ronon Stevens & Young served as advisors to Nationwide Financial, while HighMark Capital Management and Union Bank engaged Berkshire Capital Securities and Bingham McCutchen to offer advices for the deal.
