Principal makes US acquisition
The Principal Financial Group has entered into an agreement to purchase stable value asset manager Morley Financial Services from its current owner Nationwide Mutual Insurance Company.
The acquisition is to be made through the group’s global asset management arm, Principal Global Investors LLC, with consideration to be approximately $75 million.
“Stable value, is an important capability, one we believe baby boomers will increasingly demand as they move toward retirement and seek investment options to preserve their capital and generate income,” Principal Global Investors (Australia) chief executive Grant Forster said.
He believes the transaction will help Principal strengthen its ability to offer outcomes-based investing, a philosophy that concentrates on delivering a specific return over the cash rate as opposed to trying to outperform a specified benchmark.
The operation of Morley will not be dramatically affected by the deal as its managing director and chief investment officer Jill Cuniff will be continuing in the role, and the company name and organisational structure will also be maintained.
Principal Global Investors chief executive Jim McCaughan said: “By allowing our affiliated firms autonomy over their investment processes, while providing the marketing, distribution and technology resources they need to grow, we have formulated an approach that has greatly contributed to 150 per cent growth in assets under management for Principal Global Investors in the last five years.
“The acquisition of Morley Financial represents a strong strategic fit for Principal Global Investors as we continue to strengthen our portfolio of offerings suitable for retirement investing and other long-term investment strategies,” he concluded.
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