Nationwide Financial has entered a deal to acquire 17 equity and bond mutual funds with $3.6 billion in assets from Union Bank's HighMark Capital Management.

Under the agreement, HighMark is set to become the subadviser to 9 funds in the form of nine new National Funds.

With the deal, Nationwide will be having $51 billion in its fund business.

HighMark is a subsidiary of Union Bank N.A., which is also a unit of Mitsubishi UFJ Financial Group Inc.

Terms of the agreement were not divulged. The deal was first reported by Reuters.

On the other hand, five money market funds of HighMark are being sold to New York-based Reich & Tang.