Toronto-based CI Financial has agreed to acquire Hartford Financial’s Canadian mutual fund business.

Under the agreement, CI will purchase Hartford Investments, manager of 18 mutual funds with approximately C$1.75 billion ($1.71 billion) in assets. The transaction is expected to close in December, subject to regulatory approval. Terms of the deal were not disclosed.

The acquisition is part of CI's long-term strategy to increase the scale of its asset management business through organic growth and acquisitions, Stephen MacPhail, president and chief executive of CI Financial said in a statement.  

Hartford said the sale will allow it to focus on core US operations.

The addition of Hartford's Canadian mutual funds will increase CI's retail assets under management to approximately C$68.4 billion.