01—Abstract
Summary
Summary of the 8-K filed January 25, 2024. Cited figures are marked; the original filing is the authoritative source.
Principal Financial Group, Inc. (PFG) filed this Form 8-K under Item 7.01 (Regulation FD Disclosure) to quarterly disclose its assets under management (AUM) by asset manager ahead of its quarterly earnings release.
As of December 31, 2023, total assets under management for Principal Financial Group were $694.5 billiona, of which $499.5 billion was managed by Principal Global Investors and $180.4 billion was reported by Principal International. The filing notes that Principal Global Investors operates through a network of focused investment teams and highlights its exposure to small and mid-cap products within U.S. equity AUM and high yield and preferred securities within fixed income AUM, which the company points to as relevant during periods of market dislocation and wider return dispersion. Principal International's AUM is translated to U.S. dollars at end-of-period spot foreign exchange rates.
The company also reports Principal Asset Management AUM, used for marketing purposes, which excludes assets of entities where the company is a minority owner and assets not permitted to be included due to regulatory requirements. This figure was $540.4 billionb as of December 31, 2023, and the filing states it is not intended for modeling purposes. The same AUM-by-asset-manager format is expected in the financial supplement for the quarter ended December 31, 2023, slated for posting on or about February 12, 2024.
02—Key points
Key Highlights
- Total AUM was $694.5 billion as of December 31, 2023.
- Principal Global Investors managed $499.5 billion of AUM.
- Principal International reported $180.4 billion of AUM, translated at end-of-period spot exchange rates.
- Principal Asset Management AUM for marketing purposes was $540.4 billion, excluding minority-owned entities and assets restricted by regulation.
- The company flagged small and mid-cap U.S. equity and high yield and preferred fixed income exposures as relevant during market dislocations.
- The filing is a routine quarterly AUM disclosure made ahead of the quarterly earnings release.
- The full AUM-by-asset-manager breakdown is to be included in the Q4 2023 financial supplement, posted on or about February 12, 2024.
03—Questions
Frequently Asked Questions
What was Principal Financial Group's total assets under management at year-end 2023?
As of December 31, 2023, total AUM was $694.5 billion, comprising $499.5 billion managed by Principal Global Investors and $180.4 billion reported by Principal International.
What is the difference between total AUM and Principal Asset Management AUM?
Principal Asset Management AUM, used for marketing purposes, was $540.4 billion as of December 31, 2023. It excludes assets of entities where the company is a minority owner and assets not allowed to be included due to regulatory requirements. The filing states this measure is not intended for modeling purposes.
How is Principal International's AUM measured?
Principal International's reported AUM is translated into U.S. dollar equivalents using end-of-reporting-period spot foreign exchange rates, so reported values can move with currency fluctuations.
Why does the company highlight certain asset classes?
The company points to its exposure to small and mid-cap products in U.S. equity AUM and high yield and preferred securities in fixed income AUM, noting their importance during times of market dislocation and wider dispersion of returns.
When will more detailed AUM information be available?
The AUM by asset manager is to be presented in the financial supplement for the quarter ended December 31, 2023, which the company expects to post to its investor relations website on or about February 12, 2024.
04—Continue