Industrial Alliance Insurance and Financial Services Inc. announced Wednesday that it will increase its ownership of FundEX Investments Inc. from 25% to 75%.

FundEX has almost 400 reps and assets under administration of approximately
$3.5 billion. The agreement brings Industrial-Alliance’s total mutual fund assets under administration to almost $4.5 billion.

The transaction follows an initial agreement announced by the two companies in June 2002 under which Industrial Alliance acquired 25% of mutual fund dealer FundEX shares.

“For us, this partnership is a natural extension of the agreement concluded by our two companies last year,” said David Vowles, president and CEO of FundEX, in a news release.

” FundEX will now have access to additional resources and greater expertise as well as an expanded range of financial products and services with which to better serve our clients,” he added.

The agree agreement marks the fourth transaction by Industrial Alliance in the mutual funds sector since it entered this market three years ago. The agreement brings Industrial Alliance’s total mutual fund assets under administration to close to $4.5 billion and will allow the company to become a major distributor of mutual funds in Canada.

“This transaction moves us closer to our strategic objective of becoming a leading distributor of financial products in Canada,” said Normand Pépin, executive vice president of Industrial Alliance.

The agreement also provides Industrial Alliance with a purchase option and FundEX shareholders with a sale option of all remaining FundEX shares. Half of these options can be exercised as of two years following the closure of the agreement while the remaining half can be exercised three years after the agreement. This transaction is subject to regulatory approval.