Nationwide [profile] is getting a new product for its distribution platform. The insurer-owned mutual fund arm is absorbing two UBS [profile] mutual funds into its Nationwide Mutual Funds Trust. UBS will continue to act as subadvisor to the mutual funds. [SEC filing]

The fund's board stated that the mergers will give "access to Nationwide's large distribution platform" and an opportunity to "substantially" grow assets and "economies of scale benefiting shareholders."

The two mutual funds are the $88 million UBS Global Equity Fund and the $88 million UBS High Yield Fund.

Both funds will swap the UBS brand for Nationwide as a part of their name. Each mutual fund carries two stars from Morningstar.

Nationwide spokesman Dace Delaforet confirmed the new subadvisory deal, but he could not confirm whether the management of the funds would remain in place. UBS' Nicholas Irish PMs Global Equity while Matthew Iannucci selects bonds for the High Yield Fund.

Delaforet said that the subadvisory relationship between UBS and Nationwide is not new, and that UBS already serves as subadvisor on other Nationwide funds.

The UBS filing notes that the two funds will close to new investment on July 16. 

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