To Strengthen Relationship and Grow Pension and Asset Management Business in China
March 16, 2016 — DES MOINES, Iowa–(BUSINESS WIRE)– Principal Financial Group® (NYSE:PFG) and China Construction Bank (CCB) have announced the signing of a Strategic Cooperation Agreement and memorandum of understanding to develop a new asset management and pension partnership.
The agreement, signed on March 4 in Beijing, enhances the relationship Principal® has with CCB, the second largest bank in the world, and creates an opportunity for the US-based company to participate in China’s evolving pension and asset management industry.
With the signing, CCB and Principal will strengthen their cooperation in pension and asset management businesses by leveraging their respective expertise and resource advantages. The two companies will seek to set up joint business platforms with product development and market exploration, with a desire of enhancing cross market asset allocation capabilities and client service and achieving win-win for both companies.
Sharing Pension Expertise
In 2005, Principal and CCB jointly created CCB Principal Asset Management Company (CCBPAM). CCBPAM is a leading fund management company in China with 42 billion USD in assets under management (as of 12/31/15).
“It has been a great privilege to work with our premier partner – CCB – over the past 10 years,” said Larry Zimpleman, chairman of Principal. “Signing this new agreement allows us to share our pension expertise in China, but more importantly it gives us an opportunity to help people achieve greater financial security in retirement.”
With the agreement, Principal will expand its assistance to CCB beyond asset management, to now also include pension. In November of 2015, CCB received approval from the China State Council to set up a pension company. Principal will share its expertise in pension investment, operations, product design and other areas to help the new organization achieve high global standards and professional service.
The ceremonial signing included CCB Chairman Wang Hongzhang and Zimpleman along with CCB Governor Wang Zuji, CCB Vice Governor Yang Wensheng, Principal President and Chief Executive Officer Dan Houston and Principal International President Luis Valdes.
“Our vision has remained the same all along – to enter the pension business in China in a partnership with CCB, similar to what we have successfully done in fund management,” said Houston. “This agreement is an important step in our ongoing relationship with CCB and extending our global pension and asset management reach.”
While this agreement does not have any near-term impact on Principal’s earnings, it adds significant value to the company’s long-term growth opportunities and strengthens its position as a global pension leader.
Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com.
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