Nationwide Financial Services Inc., Columbus, Ohio, said it had completed the purchase of mutual-fund company NWD Investment Management Inc. for $240.2 million in cash from a subsidiary of its parent, Nationwide Mutual Insurance Co. and changed the name of the mutual funds from Gartmore Funds to Nationwide Funds.

Nationwide said the operation, now known as Nationwide Funds Group, will remain in the Philadelphia area, though its $30 billion in mutual fund assets will be managed by subadvisors, as opposed to in-house portfolio managers.

John H. Grady, who succeeded Paul Hondros as chief executive officer at the West Conshohocken firm, has been named senior vice president of investment offerings for Nationwide Financial and will continue to lead the operation, Nationwide said.

Hondros had build NWD's predecessor company, Gartmore Global Investments Inc., into a firm with $90 billion in assets only to see it dismantled last year.