The Principal Financial Group (NYSE:PFG) today announced its subsidiary, Principal Global Investors, LLC, a leading global asset manager, has agreed to increase its stake in Columbus Circle Investors from 70 to 95 percent.
Principal Global Investors acquired a 70 percent stake in the Stamford, Conn.-based equity management firm in 2005 as part of its multi-boutique strategy. Since the initial acquisition, assets under management at Columbus Circle Investors have more than quadrupled, going from $3.9 billion in 2005 to $17.5 billion (as of June 30, 2014).
“Our investment in Columbus Circle Investors has greatly exceeded our mid-teens return threshold expectations,” said Jim McCaughan, CEO of Principal Global Investors. “We’re pleased to be able to increase our ownership stake at an opportune time. This investment ensures continued success at Columbus Circle Investors and is in line with our capital deployment strategy and efforts to further enhance shareholder value.”
Tony Rizza and Clifford Fox, the two most senior partners at Columbus Circle Investors, will remain in their roles and the firm’s management and strategies will continue uninterrupted. Columbus Circle Investors provides growth-oriented domestic equity portfolios in large cap, mid cap, SMID, small cap, healthcare, international, technology and microcap healthcare categories for retirement plans and institutional investors. Under Principal Global Investors’ majority ownership, the number of products and strategies has increased from four to eight, with the most recent addition being the launch of an international strategy.
Forward looking and cautionary statements
This press release
contains forward-looking statements, including, without limitation,
statements as to operating earnings, net income available to common
stockholders, net cash flows, realized and unrealized gains and losses,
capital and liquidity positions, sales and earnings trends, and
management's beliefs, expectations, goals and opinions. The company does
not undertake to update these statements, which are based on a number of
assumptions concerning future conditions that may ultimately prove to be
inaccurate. Future events and their effects on the company may not be
those anticipated, and actual results may differ materially from the
results anticipated in these forward-looking statements. The risks,
uncertainties and factors that could cause or contribute to such
material differences are discussed in the company's annual report on
Form 10-K for the year ended Dec. 31, 2012, filed by the company with
the Securities and Exchange Commission, as updated or supplemented from
time to time in subsequent filings. These risks and uncertainties
include, without limitation: adverse capital and credit market
conditions may significantly affect the company’s ability to meet
liquidity needs, access to capital and cost of capital; continued
difficult conditions in the global capital markets and the economy
generally; continued volatility or further declines in the equity
markets; changes in interest rates or credit spreads; the company’s
investment portfolio is subject to several risks that may diminish the
value of its invested assets and the investment returns credited to
customers; the company’s valuation of securities may include
methodologies, estimations and assumptions that are subject to differing
interpretations; the determination of the amount of allowances and
impairments taken on the company’s investments requires estimations and
assumptions that are subject to differing interpretations; gross
unrealized losses may be realized or result in future impairments;
competition from companies that may have greater financial resources,
broader arrays of products, higher ratings and stronger financial
performance; a downgrade in the company’s financial strength or credit
ratings; inability to attract and retain sales representatives and
develop new distribution sources; international business risks; the
company’s actual experience could differ significantly from its pricing
and reserving assumptions; the company’s ability to pay stockholder
dividends and meet its obligations may be constrained by the limitations
on dividends or distributions Iowa insurance laws impose on Principal
Life; the pattern of amortizing the company’s DPAC and other actuarial
balances on its universal life-type insurance contracts, participating
life insurance policies and certain investment contracts may change; the
company may need to fund deficiencies in its “Closed Block” assets that
support participating ordinary life insurance policies that had a
dividend scale in force at the time of Principal Life’s 1998 conversion
into a stock life insurance company; the company’s reinsurers could
default on their obligations or increase their rates; risks arising from
acquisitions of businesses; changes in laws, regulations or accounting
standards; a computer system failure or security breach could disrupt
the company’s business, and damage its reputation; results of litigation
and regulatory investigations; from time to time the company may become
subject to tax audits, tax litigation or similar proceedings, and as a
result it may owe additional taxes, interest and penalties in amounts
that may be material; fluctuations in foreign currency exchange rates;
and applicable laws and the company’s certificate of incorporation and
by-laws may discourage takeovers and business combinations that some
stockholders might consider in their best interests.
About Principal Global Investors
Principal Global Investors
is a diversified asset management organization and a member of the
Principal Financial Group®, with expertise in equities, fixed
income and real estate investments, as well as specialized overlay and
advisory services. Principal Global Investors manages $328.2 billion in
assets1 primarily for retirement plans and other
institutional clients2.
About the Principal Financial Group
The Principal Financial
Group® (The Principal®)3 is a global
investment management leader offering retirement services, insurance
solutions and asset management. The Principal offers businesses,
individuals and institutional clients a wide range of financial products
and services, including retirement, asset management and insurance
through its diverse family of financial services companies. Founded in
1879 and a member of the FORTUNE 500®, the Principal
Financial Group has $517.9 billion in assets under management4 and
serves some 19.4 million customers worldwide from offices in Asia,
Australia, Europe, Latin America and the United States. Principal
Financial Group, Inc. is traded on the New York Stock Exchange under the
ticker symbol PFG. For more information, visit www.principal.com.
1 As of June 30, 2014.
2 Principal Global
Investors is the asset management arm of the Principal Financial Group ®
(The Principal ®) and includes the asset management operations of the
following subsidiaries of The Principal: Principal Global Investors,
LLC; Principal Real Estate Investors, LLC; Principal Enterprise Capital,
LLC; Liongate Capital Management LLP; Spectrum Asset Management, Inc.;
Post Advisory Group, LLC; Columbus Circle Investors; Edge Asset
Management, Inc.; Morley Financial Services Inc.; Finisterre Capital,
LLP; Origin Asset Management, LLP; Principal Global Investors (Europe)
Limited; Principal Global Investors (Singapore) Ltd.; Principal Global
Investors (Australia) Ltd.; Principal Global Investors (Japan) Ltd.;
Principal Global Investors (Hong Kong) Ltd.; CIMB-Principal Islamic
Asset Management Sdn. Bhd.; and the majority owned affiliates of
Principal International, Inc. Assets under management includes assets
managed by investment professionals of Principal Global Investors under
dual employee arrangements with other subsidiaries of The Principal and
assets managed in accordance with investment advice provided by
Principal Global Investors through the delivery of a model.
3
“The Principal Financial Group” and “The Principal” are registered
service marks of Principal Financial Services, Inc., a member of the
Principal Financial Group.
4 As of June 30, 2014.
Contacts:
Media Contact:
Adam
Lackey, 515-362-0482
lackey.adam@principal.com
or
Investor
Relations:
John Egan, 515-235-9500
egan.john@principal.com