* Deal announcement expected this week -sources
* Reich & Tang to buy money market funds -source
By Jessica Toonkel
NEW YORK, April 2 Columbus, Ohio-based
Nationwide Financial and New York-based Reich & Tang are buying
UnionBanCal Corp's mutual fund business, three sources told
Reuters on Tuesday.
San Francisco-based UnionBanCal is expected to announce the
sale of its HighMark Funds to the two parties in the next few
days, said two of the sources, who wished to remain anonymous
because they are not permitted to speak to the media.
UnionBanCal is selling 19 of its 24 HighMark Funds, to
Nationwide Financial, the two sources said. Nationwide's funds
group, based in Philadelphia, is made up of 91 funds that had
$45 billion in assets under management as of December 31.
Through the sale, Nationwide will be adding another $4 billion
in funds to its group, based on Lipper data.
UnionBanCal is selling its five money market funds, which
have $4.2 billion in assets, to Reich & Tang, a New York-based
subsidiary of Natixis Global Asset Management, S.A., the two
It could not be determined how much Nationwide and Reich &
Tang are paying for the funds.
A UnionBanCal official was not immediately available to
comment, a spokeswoman said. Nationwide declined to comment. A
call to Reich & Tang was not immediately returned.
UnionBanCal, which had $97 billion in assets at December 31,
2012, is a subsidiary of Mitsubishi UFJ Financial Group Inc
The firm joins a number of U.S. financial institutions that
are shedding their asset management arms to focus on core
Atlanta-based SunTrust Banks Inc is in talks to sell
its RidgeWorth Asset Management and is also expected to announce
a deal shortly.