San Francisco-based HighMark Capital Management has pulled out of the subadvisory business, walking away from a host of mutual funds and institutional mandates, Citywire can reveal.
The $16.6 billion asset management unit of Union Bank’s wealth markets business will have no more subadvisory relationships from November 17.
Prior to this move it subadvised eights funds for Nationwide as well as some strategies for US Bank and First Mercantile. In total its subadvised business accounted for $3.7 billion in assets under management.
According to a HighMark spokeswoman, over the past year the firm has been focusing its attention towards its core wealth and asset management businesses.
‘This will allow us to dedicate greater resources to our core investment business,’ she said.
HighMark Capital Management is a part of the wealth markets group at Union Bank, which includes the latter’s private wealth, wealth planning, trust and estate services. Union Bank had $118.6 billion assets under management as of September 30 2017.
HighMark Capital Management will continue to provide in-house investment support to high-net-worth clients, foundations and endowments, which Union Bank works with.
The move away from subadvisory business will see HighMark no longer named on eight Nationwide funds, which had total assets of $3.1 billion, including the:
- $1 billion Nationwide Fund
- $621.4 million Nationwide HighMark Bond fund
- $336.6 million Nationwide HighMark Small Cap Core fund
On the Nationwide HighMark Bond fund, HighMark was replaced by Loomis Sayles, which appointed Christopher Harms, Clifton Rowe and Kurt Wagner to the fund. As a result, the fund has been renamed the Nationwide Loomis Bond fund.
The Nationwide HighMark Small Cap Core fund will now be subadvised by WCM Investment Management, which appointed Jonathan Detter, Anthony Glickhouse and Patrick McGee to oversee the fund. The fund was renamed the Nationwide WCM Focused Small Cap fund.
‘We have a strong transition plan in place, and we will continue our careful oversight of our investment solutions to serve shareholder interests during the transition,’ said a Nationwide spokesman.
Nationwide currently offers 116 funds with $62 billion in assets under managment.