TORONTO — One out of three Canadians is financially linked to a credit union but the numbers are not as strong when it comes to having their investment needs met. The January completion of a merger between Provincial Credit Union Centrals and Desjardins Group aims to change those numbers, however.

The two entities are heading a partnership between Northwest Funds and The Ethical Funds Company that will create a $5.5 billion investment firm. Initially announced on Sept.19, 2007, the partnership has produced the new company Northwest & Ethical Investments L.P. Both the Northwest Funds and Ethical Funds brands will continue to operate under that name. Northwest & Ethical became responsible for managing the assets of both firms as of Dec. 28, 2007. Provincial Credit Union Centrals and Desjardins Group will each own 50% of Northwest & Ethical.

"When we looked at the book of business at credit unions in Canada, we noticed a large sum [is] held in competitors' products," said Don Rolfe, CEO of the new company. "But if we were able to demonstrate that our product was comparable, why wouldn't you want the one that provides greater compensation and increased market value. In essence, the credit unions own the fund and they have an inherent investment in the firm."