Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Investor Day (2013)
13 slides from Principal Financial's investor day presentation, 2013
Slide 1: Principal Global Investors at a glance
JIM MCCAUGHAN PRINCIPAL GLOBAL INVESTORS at a glance PRINCIPAL GLOBAL INVESTORS • Serve clients in over 60 countries, including several major central banks and sovereign Principal Global Investors Assets Under Management wealth funds $271B • Manages assets for 12 of the 25 largest U.S. By Asset Clas
Slide 2: Steady AUM & revenue growth; improving earnings margins
PRINCIPAL GLOBAL AUM $263.2 $271.2 ($ Billions) $220.1 $227.8 INVESTORS $98.2 $101.4 STEADY AUM $78.7 $82.4 & REVENUE 2010 2011 2012 6/30/13 Unaffiliated Total GROWTH Operating Revenue ($ Millions) $591 $546 $481 $322 2010 2011 2012 1H13 28 PRINCIPAL GLOBAL INVESTORS EARNINGS GROWTH, 2010 2011 2012
Slide 3: Our growth drivers; strong institutional performance
PRINCIPAL GLOBAL INVESTORS • Top‐tier manager for retirement and other long‐term strategies OUR • Serve all businesses of The Principal with suitable investment capabilities GROWTH • Proven multi‐boutique operating DRIVERS approach • Capabilities well‐aligned with where investor needs continue to mo
Slide 4: Strong performance on fund platforms
1st Quartile 2nd Quartile PRINCIPAL GLOBAL 3rd Quartile 4th Quartile INVESTORS 3‐year 1‐year Ranking Annualized Ranking STRONG Principal Funds PERFORMANCE (Sub‐advised by PGI) 11 (42 Funds) 16 10 5 25 (39 Funds) 10 4 ON FUND PGI Dublin Funds PLATFORMS (Dublin UCITS) 5 (11 Funds) 3 2 1 (10 Funds) 7 3
Slide 5: Proven multi-boutique approach
PRINCIPAL GLOBAL INVESTORS • Shared vision, culture and values • Strong leadership team and oversight PROVEN • Independent investment processes MULTI‐ • Strategic alignment of products • Leverages Principal global platform BOUTIQUE – Distribution APPROACH – Compliance – Reputation • Strong successio
Slide 6: Edge investment strategies
PRINCIPAL GLOBAL INVESTORS • Founded in 1939; acquired in 2007 Boutique Close‐Up • Offices in Seattle, Washington • 21 investment professionals • Equity, fixed income and asset allocation • Innovation ‐‐ one of the first mutual funds and target risk funds in the industry • Income‐oriented strategies
Slide 7: Edge benefits from synergies across the Principal
PRINCIPAL GLOBAL INVESTORS Boutique Close‐Up • $23.0B in AUM* as of 6/30/13, up $7.9B EDGE from midst of financial crisis – Over 95% of assets sourced by The Principal BENEFITS • Revenue of $19.5M in 2012 FROM • Edge’s growth story – strong investment performance and working effectively across SYNER
Slide 8: Finisterre: delivering risk-controlled strategies
PRINCIPAL GLOBAL INVESTORS • Founded in 2002; acquired by Principal in 2011 Boutique Close‐Up • 36 professionals based in the U.S., U.K., Malta and Hong Kong • Experienced emerging markets specialists managing hedge funds and regulated products • Delivering risk‐controlled, total return investment s
Slide 9: Diversified institutional investors
AUM BY COUNTRY AUM BY TYPE as of 6/30/13 as of 6/30/13 Scandinavia Switzerland Family Offices PRINCIPAL GLOBAL 19% 16% 13% INVESTORS U.K. Fund of Boutique Close‐Up 12% Funds 13% Europe Pensions & U.S. 4% Institutions 47% Japan 70% Partners & Other 1% Employees 1% 4% DIVERSIFIED $1,762M $1,727M AUM I
Slide 10: Well suited for a time of change
PRINCIPAL GLOBAL INVESTORS • Investment management industry experiencing WELL SUITED most dramatic change since the 1970s • Principal Financial Group has all the elements FOR A TIME needed to continue to be a leading beneficiary of this change OF CHANGE • Among those elements are investment capabili
Slide 11: Right products at right time; close to markets and clients
• U.S. Products PRINCIPAL GLOBAL PGI Ultra Short Fixed Income INVESTORS Spectrum Preferreds Principal Real Estate CMBS RIGHT PGI Fixed Income Global Credit Opportunities PRODUCTS Principal Green Property AT RIGHT Principal Real Estate Income Closed End Fund (NYSE:PGZ) TIME • Global Produ
Slide 12: Multi-channel distribution and 5 year outlook
PGI INSTITUTIONAL PGI THIRD PARTY DISTRIBUTION DISTRIBUTION (Sales, relationship management, • U.S. – Separately Managed consultant relations) • U.S. – Corporate, Public, Accounts, Alternatives Foundations & Endowments • International – Dublin Funds, • International – Corporate, Australian Funds Sov
Slide 13: Key takeaways and Q&A
PRINCIPAL GLOBAL INVESTORS • Exceptionally strong and diverse array KEY of investment capabilities that meet changing client needs. TAKEAWAYS • High quality investment management underpins all Principal Financial Group businesses. • Global distribution and operating capabilities enhance the business