Offer long-term savings, asset management, and retirement solutions in select Latin American and Asian emerging markets:

• Brazil
• Chile
• China
• Hong Kong, SAR
• India
• Indonesia
• Malaysia
• Mexico
• Singapore
• Thailand

Products & services

• Pensions
• Mutual funds
• Asset management
• Shariah-compliant investments
• Retirement advisory services
• Annuities

Joint venture partners

• Banco do Brasil (Brazil)
• China Construction Bank (China)
• CIMB Group (Southeast Asia)
• Punjab National Bank (India)

Mutual fund/asset management/boutique

• Claritas (Brazil)

2017 financial highlights

• 2017 pre-tax operating earnings of $330 million, an increase of 15 percent over 2016
• Reported assets under management of $161 billion at year-end, an increase of 17 percent over year-end 2016; excludes $124 billion of assets under management in our joint venture in China, an increase of 23 percent over year-end 2016
• Reported net cash flows of $6.3 billion; excludes $18.3 billion of net cash flows in our joint venture in China
• Combined pre-tax return on net revenue (at Principal’s share)³ of 36 percent

Recognition & accomplishments

• CCB Principal Asset Management was one of seven fund companies chosen to offer selected mutual funds on the Ant Financial Platform, Alibaba’s online financial portal. (March 2017)
• CPAM (CIMB-Principal Asset Management) Malaysia was named Fund House of the Year – Malaysia – by AsianInvestor (April 2017).
• Principal announced an agreement to acquire full ownership of MetLife AFORE operations, providing better support to our customers in Mexico, additional scale, and a larger distribution network. (October 2017)
• Banco do Brasil and Principal announced an investment agreement to create a digital insurance brokerage firm focused on pension and protection products for the Brazilian market. Pending regulatory approvals, the new firm, Ciclic, will target open market customers with pension products manufactured by Brasilprev. (December 2017)
• Principal and Punjab National Bank announced the signing of a share purchase agreement that enables Principal to assume full ownership for the Principal-PNB joint venture asset management company, pending regulatory approval. (December 2017)
• Cuprum AFP was recognized as one of the top 100 companies with the best reputation in Chile according to Merco. (November 2017)

³ Combined pre-tax return on net revenue (at Principal’s share) equals pre-tax operating earnings divided by combined net revenue (at Principal’s share). Combined basis equals all Principal International companies at 100 percent ownership. Combined net revenue (at Principal’s share) is a non-GAAP financial measure the company has determined is more representative of underlying net revenue growth for Principal International as it reflects our proportionate share of consolidated and equity method subsidiaries. In addition, using this net revenue metric provides a more meaningful representation of our profit margins.

Provide investment management capabilities to institutional, retirement, and retail investors through a network of specialized boutique asset managers. More than 500 investment professionals around the world with clients in more than 80 countries.

Products & services

• Broad range of specialist investment capabilities spanning equities, fixed income, real estate, and alternatives
• Industry leader in delivering customized, multi-asset, and multi-manager solutions to meet specific investor objectives
• Capabilities offered in a wide variety of legal vehicles to address differences in investor preferences and regulatory regimes
• Equities
• Global & all-country
• International (ex-U.S.)
• Emerging markets
• U.S.
• Small-cap
• Geographic and objective
• Tailored solutions
• Blue chip
• Mid-cap
• Fixed income
• High yield
• Emerging market debt
• Preferred securities
• Investment-grade credit
• Opportunistic
• Liability-driven investments/long duration
• Real estate
• Private equity (core, value-added, and opportunistic properties)
• Public equity (real estate investment trust securities)
• Private debt (commercial mortgages, bridge, and mezzanine loans)
• Asset allocation
• Strategic asset allocation
• Dynamic outcome
• Dynamic asset allocation
• Alternatives and structured investment strategies
• Currency management

Products and services

• Pensions
• Mutual funds
• Asset management
• Islamic mutual funds
• Islamic asset management
• Retirement advisory services
• Annuities

2017 financial highlights

• 2017 pre-tax operating earnings of $470 million, an increase of 6 percent over 2016
• Total assets under management of $431 billion at year-end, an increase of 10 percent over year-end 2016
• Pre-tax return on operating revenues less pass-through commissions⁴ of 37 percent

Recognition & accomplishments

• For the sixth year in a row, Principal earned a top spot in its category in Pensions & Investments’ annual survey of the Best Places to Work in Money Management.⁵
• Principal Global Investors received strong scores in environmental, social, and governance (ESG) based on the 2017 Principles for Responsible Investment (PRI) pilot Assessment Report. The score for Overall Approach was an A+ (on a scale of A+ to E) and was well above the median score of A.⁶

⁴ Pre-tax return on operating revenues less pass-through commissions equals pre-tax operating earnings, adjusted for noncontrolling interest divided by operating revenues less pass-through commissions. Operating revenues less pass-through commissions is a non-GAAP financial measure the company has determined is more representative of underlying operating revenues growth for Principal Global Investors. In addition, using this net revenue metric provides a more meaningful representation of our profit margins.

⁵ Pensions & Investments, “The Best Places to Work in Money Management among companies with 1,000 or more employees,” December 11, 2017.

⁶PRI Assessment Report, July 2017.

Offer business solutions to help employers protect their business and their employees, and to help key employees prepare for retirement through nonqualified bonus and deferred compensation plans.

Products & services

• Specialty benefits: Employer-paid and voluntary work-site solutions
• Group dental, vision, life, disability, and supplemental insurance, including accident and critical illness
• Individual disability insurance
• Dental discount product
• Individual life insurance: Protection and accumulation products and solutions for individuals and businesses
• Universal, indexed, variable, and term life insurance products for individual and business needs
• Business solutions to help employers protect their business, their employees, and their lifestyles, including nonqualified bonus and deferred compensation plans

2017 financial highlights

• 2017 pre-tax operating earnings of $385 million, an increase of 7 percent over 2016
• 9 percent growth in premium and fees in both Specialty Benefits and Individual Life
• Specialty Benefits loss ratio of 63 percent

Recognition & accomplishments

• Ranked as the No. 3 provider of group benefits (dental, life, disability) insurance based on 2016 LIMRA data on fully insured employer contracts in force. (May 2017)
• Recognized by PLANSPONSOR magazine as the No. 1 provider of nonqualified deferred compensation plans.⁷

⁷ Based on total number of Section 409A non-governmental 457 plans, PLANSPONSOR 2017 Recordkeeping Survey, June 2017.