Vancouver, October 1, 2009 – IA Clarington Investments Inc. (“IA Clarington”), a wholly owned subsidiary of Industrial Alliance Insurance and Financial Services Inc. (“Industrial Alliance” or “IA”), and Vancouver City Savings Credit Union (“Vancity”) announced today they have entered into a definitive agreement whereby IA Clarington will purchase the socially responsible investing (“SRI”) mutual fund business of Inhance Investment Management Inc. (“Inhance”), a wholly owned subsidiary of Vancity, and enter into a long-term strategic relationship for the distribution of IA Clarington mutual funds through Vancity branches.
Inhance is a Canadian mutual fund company with approximately $75 million of mutual fund assets under management (“AUM”) and a recognized industry leader in the SRI arena. Founded in 2001, Inhance is based in Vancouver and is owned by Vancity, one of Canada‟s largest credit union with $14.5 billion in assets, more than 400,000 members, and 60 retail branches in the Greater Vancouver area, Fraser Valley, Victoria, and Squamish.
The Inhance fund family will be merged with six new SRI funds (the “IA Clarington SRI funds”) to be launched on the IA Clarington investment funds platform and with two existing IA Clarington funds. Veteran fund managers Stephen MacInnes, Dermot Foley and other key members of the existing in-house Inhance investment team will remain with Vancity Investment Management Inc. after the transaction to act as sub-advisor for the new IA Clarington SRI funds.
“Industrial Alliance is pleased to partner with a premier organization such as Vancity, which is recognized both for its sound financial management and for its outstanding contributions to the communities it serves”, said Normand Pépin, Executive Vice-President of Industrial Alliance. “The addition of Inhance‟s SRI mutual fund business represents a natural evolution of IA‟s commitment to corporate social responsibility and a continuation of IA‟s best-of-breed investment philosophy through the addition of a top-rated Canadian SRI investment advisor. It also provides access to a new distribution network in Western Canada made up of experienced financial advisors.”
“This is an excellent opportunity for Vancity and Inhance,” said Tamara Vrooman, President and Chief Executive Officer of Vancity. “ Vancity will retain Inhance‟s renowned team of advisors who pioneered socially responsible investing that is now considered „best in class,‟ and, by partnering with IA Clarington, will see socially responsible investments brought to a much wider marketplace. This aligns with Vancity‟s vision and our strategy to focus on what we do best. Additionally, IA Clarington has a strong management team with stability and depth of experience and a large family of funds for our members to choose from.”
The transaction is subject to unitholder, regulatory and other approvals. It is expected to close in mid-December, 2009. Further details regarding the proposed transaction will be provided to Inhance mutual fund investors in connection with the meetings to be held regarding the fund mergers.
 
About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services. The fourth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group, which has operations across Canada as well as in the Western United States. Industrial Alliance contributes to the financial well-being of over three million Canadians, employs more than 3,500 people and manages and administers over $54 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. Industrial Alliance is among the 100 largest public companies in Canada.

About IA Clarington
IA Clarington Investments Inc., a subsidiary of Industrial Alliance Insurance and Financial Services Inc., markets a wide range of investment products, including mutual funds and segregated funds managed by leading portfolio advisors. IA Clarington managed about $7 billion in assets as at August 31, 2009.
About Vancity
Vancity is one of Canada's largest credit unions, with $14.5 billion in assets, more than 400,000 members, and 60 branches throughout Greater Vancouver, the Fraser Valley, Victoria and Squamish. Vancity is guided by a commitment to improving the quality of life in the communities where we live and work.
About Inhance
Inhance is a Canadian investment management company owned by Vancity and dedicated to being a leader in evolving the Socially Responsible Investment arena, with a mission of creating wealth for Canadian investors through Return on Responsibility™.