Wealth management firm Qtrade Financial Group is set to move into the socially responsible investing realm by merging its fund management unit with SRI mutual fund provider Meritas Financial Inc.

Meritas and Qtrade Fund Management Inc. announced on Wednesday that they have entered into a definitive agreement to merge their operations.

The combined entity will be part of the Qtrade Financial Group, which will have more than $4 billion in assets under administration and $350 million in assets under management.

Meritas Mutual Funds will continue to operate as a separate division within Qtrade and will continue to focus exclusively on socially responsible investing.

“The opportunity to broaden our wealth management offering with Meritas, a leading provider of SRI investment solutions in Canada, is very exciting,” said Scott Gibner, CEO of Qtrade. “Meritas’ strong and unwavering commitment to SRI over the last 10 years has been the foundation for their success and, as SRI funds continue to grow in popularity in Canada and globally, we believe this dedication and historical track record will continue to serve Meritas very well into the future.”

Gibner said one of Qtrade’s primary goals will be to build the status of its investment solutions nationally, including a large focus on Meritas’ SRI funds.

Gary Hawton, CEO of Meritas, said the partnership offers hefty new prospects for the company.

“At a time when many mutual fund companies are cutting staff and closing funds, we plan to do the opposite,” he said. “We anticipate adding new staff across Canada to continue to develop the strong relationships with the advisors who have made us one of the fastest growing mutual fund companies in the country.”

The company’s growth, Hawton said, reflects the growing demand for SRI funds in Canada. He expects the company to launch new funds in the near future.

Meritas Mutual Funds’ head office will continue to be located in Kitchener, Ont. with regional representation across Canada servicing the advisor community. Qtrade will continue to be based in Vancouver, and an Eastern Canada office will be created in Kitchener to serve its growing client base in Ontario and surrounding provinces.

Both parties anticipate the transaction will close at the end of March 2010 subject to regulatory and other necessary approvals.