IA Clarington Investments Inc. and Vancouver City Savings Credit Union have entered into a definitive agreement that will see IA Clarington purchase the socially responsible investing mutual fund business of Vancity’s Inhance Investment Management Inc. subsidiary, the companies said Thursday.

Terms of sale were not disclosed.

The two organizations will also enter into a long-term strategic relationship for the distribution of IA Clarington mutual funds through Vancity branches.

Vancouver-based Inhance has approximately $75 million of mutual fund assets under management.

The Inhance fund family will be merged with six new IA Clarington SRI funds to be launched, and with two existing IA Clarington funds.

Veteran fund managers Stephen MacInnes, Dermot Foley and other key members of the existing in-house Inhance investment team will remain with Vancity Investment Management Inc. after the transaction to act as sub-advisor for the new IA Clarington SRI funds.

“The addition of Inhance’s SRI mutual fund business represents a natural evolution of IA’s commitment to corporate social responsibility and a continuation of IA’s best-of-breed investment philosophy through the addition of a top-rated Canadian SRI investment advisor,” says Normand Pépin, executive vice president of Industrial Alliance.

“It also provides access to a new distribution network in Western Canada made up of experienced financial advisors.”

“This is an excellent opportunity for Vancity and Inhance,” adds Tamara Vrooman, president and CEO of Vancity.

“Vancity will retain Inhance’s renowned team of advisors who pioneered socially responsible investing that is now considered ‘best in class’, and, by partnering with IA Clarington, will see socially responsible investments brought to a much wider marketplace. This aligns with Vancity’s vision and our strategy to focus on what we do best.”

The transaction is subject to unitholder, regulatory and other approvals. It is expected to close in mid-December.