Northwest Funds and Ethical Funds today announced the successful completion of the transaction to create a strategic partnership between the two companies.

Initially announced on Sept. 19, 2007, the partnership has created the new company Northwest & Ethical Investments L.P. (Northwest & Ethical) under which both the Northwest Funds and Ethical Funds brands will continue to operate.

Northwest & Ethical became responsible for managing the assets of both firms as of Dec. 28, 2007.

The partnership creates a national investment firm with approximately $5.5 billion in assets under management and positions Northwest & Ethical to be one of the fastest growing investment companies in Canada, the fund companies say.

This joint venture will also ensure Northwest Funds and Ethical Funds have access to the resources they need to expand leadership positions in their respective categories.

“The collaborative work that has been ongoing since the September announcement has only confirmed the outstanding growth prospects that both firms will enjoy as partners,” says Don Rolfe, CEO of the new company.

“Access to each other’s distribution networks, in addition to those of parent companies the Desjardins Group and Canada’s Provincial Credit Union Centrals, will be a key contributor to that growth, and future business opportunities should raise the potential even further,” adds Rolfe.

In addition to Rolfe, the Northwest & Ethical management team is led by Michael Butler, serving as president and C.O.O.

Based in Toronto, with offices in Vancouver and Montreal, the transition of all operations to one platform is anticipated to be complete by the Fall of 2008.

The Board of Directors of the new company is comprised of equal representation from Desjardins Group and the Provincial Credit Union Centrals:

Northwest & Ethical Investments L.P. is an interim corporate name until a permanent brand name is approved by the board of directors.