Nationwide Financial has signed a letter of intent with
Bisys Fund Services to handle its fund administration, accounting, transfer agent, and shareholder services. These functions had been performed internally by a staff of 145 located in Columbus, Ohio. A Nationwide spokesperson would not comment on which vendors beside Bisys had been considered in the search.
The switch to Bisys is scheduled for September 1, pending the approval of the fund family's trustees. As a part of the agreement, Bisys Fund Services is offering all 145 effected Nationwide employees jobs in its Columbus office.
"Location, location, location," was one factor in the decision to hire Bisys, the spokesperson confirmed. That both companies are located in Columbus "will lead to an easier transition for our employees," he stated.
The decision to out-source these tasks to Bisys was made as a part of Nationwide's efforts to integrate its mutual fund operations, including
Nationwide Advisory Services, into its new Villanova group. Nationwide has set a target to grow its assets under management to $50 billion by 2002 from its current $20 billion.
Last February it hired Paul Hondros to head its fund management area from Pilgrim Baxter Associates. Hondros' management group -- dubbed Villanova -- is located outside of Philadelphia and comprises the 36 mutual funds advised by Nationwide Financial and Morley Financial (Lake Oswego, Oregon). Hondros joined Nationwide
in the wake of the collapse of negotiations between Nationwide and United Asset Management over the purchase of Pilgrim Baxter.
"We are delighted to forge this partnership and welcome the opportunity to provide back-office services to Villanova Capital as it focuses on an aggressive plan to grow its business,"
said David Huber, president of Bisys Fund Services. "We are excited about this relationship and particularly about the prospect of adding Nationwide's team of talented and experienced employees to our firm," concluded Mr. Huber.
According to John Mulherin, executive vice president of Villanova Capital, "This move enables us to focus on our core business of money management while significantly improving our range and scale of technology, services, and operational capabilities. Bisys is a global provider of transfer agency and fund accounting services with distinctive capabilities and a well-known record of superior customer service."
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