Canada’s Provincial Credit Union Centrals and Desjardins Group today said they have created a partnership aimed at increasing the growth rate of The Ethical Funds Co. and Northwest Mutual Funds Inc. through increased product distribution.

The deal creates a national investment firm with $5.5 billion in assets under management. Northwest Funds and Ethical Funds will be equally owned by the Provincial Credit and Desjardins Group.

“The products of both companies will continue to be offered under their own corporate brands and through their existing networks. In addition, they will also be promoted through the other partner’s distribution network,” the two said in a press statement.

Ethical Funds’ president and CEO Don Rolfe will act as CEO of the new firm and Northwest president and chief operating officer Michael Butler will be COO.

“Desjardins Group wholeheartedly supports this opportunity to create a strong, jointly beneficial partnership with the Canadian credit unions. This is another step towards creating a stronger financial cooperative movement in Canada,” said Alban D’Amours, president and CEO, Desjardins Group.

“Furthermore, our cooperative and sustainable development values are well aligned and we see this as a unique opportunity to foster additional growth for Northwest.”

Added Allan Morin, chair, Ethical Funds: “This partnership enhances the opportunity for Ethical Funds to accelerate growth, while retaining its distinctive brand and investment objectives. As a result, Ethical Funds will become an even stronger champion for the principles of socially responsible investing and shareholder action.”