First Asset Management Inc. is selling Northwest Asset Management Inc. and its wholly owned subsidiary Northwest Mutual Funds Inc. to a subsidiary of Desjardins Financial Corp.

Under the deal, subject to regulatory approval, Northwest will ultimately become a subsidiary of Desjardins Trust, First Asset said.

Northwest will keep its relationships with Canadian boutique managers, including Kingwest & Co. and First Asset affiliates Foyston, Gordon & Payne Inc., Deans Knight Capital Management Inc., and First Asset Investment Management Inc., all of which will continue to manage their respective funds following completion of the transaction. Desjardins Trust will transfer distribution of its Maestral Funds under Northwest President Michael Butler.

“We are extremely enthusiastic about joining the Desjardins organization,” Butler said in a statement. “It provides our investors with an expanded line of products and services, not to mention the added efficiencies and resources that come from being associated with such an established firm.”

Michael Simonetta, president and CEO of First Asset, said the deal will allow the company to focus on delivering wealth management products and services for high net worth and institutional markets. “We already enjoy a strong relationship with the Desjardins organization across several areas of our business, and we look forward to expanding our relationship with a key distribution partner for us,” he said in a statment.

The transaction, terms of which were not disclosed, is expected to close on Sept. 30.

Privately held First Asset has about $21 billion in assets under management.