Northwest Mutual Funds Inc. plans to merge Northwest Specialty Aggressive Growth Fund into Northwest Specialty Equity Fund.

According to Northwest, both funds have substantially similar and compatible investment objectives. Each invests primarily in equity securities of small and mid-cap Canadian companies.

“Given the similar investment objectives of these funds, the relative sizes of the funds, economies of scale and the fact that Northwest Specialty Equity Fund will be sized in order to move nimbly and capitalize on attractive opportunities, we have determined that this merger is in the best interests of the unitholders of our Aggressive Growth Fund”, said Michael Butler, president and CEO of Northwest.

Northwest Specialty Equity Fund is managed by Wayne Deans, co-founder of Deans Knight Capital Management, one of Canada’s premiere small/mid-cap managers with over 30 years of investment experience. “We are starting to see small-cap companies coming back into favor, which will only benefit the Northwest Specialty Equity Fund. And with this infusion of capital, we’ll be able to increase our positions in key companies to further build upon our recent short-term success” said Deans.

The Northwest Specialty Equity Fund specializes in building a portfolio of small/mid-cap companies with distinct competitive advantages in their industry and growing market share. The fund is 100% RRSP eligible. As at April 30, 2001, Northwest Specialty Equity Fund’s one, three, five and ten year average annual returns were 21.2%, -4.8%, -3.0% and 17.3% respectively, and the fund has a 10.5% return since inception.

Northwest expects to mail materials for the special meeting of unitholders of Northwest Specialty Aggressive Growth Fund shortly.