Principal Financial - PFG STOCK NEWS

Principal Asset Management has launched the Principal Capital Appreciation Select ETF (LCAP), expanding its active ETF lineup to 12 funds with combined AUM of $5.9 billion. The new ETF will be managed by Principal Edge, which oversees $21.1 billion in AUM.

The launch comes amid growing interest in active ETFs, which saw net inflows exceeding $27.9 billion in 2024. The fund aims to invest in high-quality U.S. companies with competitive advantages and growing cash flows, managed by portfolio managers Toby Jayne and Dan Coleman.

The ETF is designed to provide investors with stability and long-term capital growth, offering active management flexibility to navigate market uncertainty, identify undervalued opportunities, and mitigate downside risks.

SS&C Technologies Holdings (Nasdaq: SSNC) has announced the extension of its transfer agency relationship with Principal Asset Management, the investment management division of Principal Financial Group (Nasdaq: PFG). SS&C will continue providing comprehensive fund services to Principal's portfolio of 114 mutual funds, encompassing 467 mutual and retail alternatives share classes, managing approximately $160 billion in assets.

Through SS&C Global Investor & Distribution Solutions (GIDS), the company will deliver transfer agency and digital investor services, including investor communications, document processing, and anti-money laundering services. Principal's diverse investment offerings span over 50 fund types across equity, fixed income, real estate, and alternative strategies, serving both individual and institutional investors.

Principal Financial Group has been named one of the 2025 World's Most Ethical Companies® by Ethisphere, marking its 14th recognition for ethical business practices. The company joins an elite group of 136 companies across 19 countries and 44 industries worldwide.

President and CEO Deanna Stable emphasized that ethical business practices are important for building customer trust and contributing to long-term success. Companies recognized on the 2025 list outperformed a comparable index of global companies by 7.8 percentage points from January 2020 to January 2025.

The selection process utilizes Ethisphere's Ethics Quotient® framework, requiring companies to provide over 240 proof points on various aspects including ethics and compliance, governance, culture, environmental and social impact, and value chain initiatives.

Principal Financial Group reveals that 60% of retirement savers have reduced, stopped, or withdrawn contributions at some point, according to a recent survey. Despite these setbacks, 50% managed to catch up to their original savings trajectory. 78% of those who paused contributions eventually resumed saving.

The survey identified key reasons for reducing savings, including high monthly expenses, lower income, unexpected life events, and debt repayment. Essential expenses, house down payments, and job loss were primary drivers for withdrawals. Three-quarters of respondents felt they had no alternative when modifying their retirement contributions.

Among top savers (those contributing 15%+ of annual income), 65% also utilized IRAs compared to 39% of lower-contribution savers, indicating a trend toward diversifying retirement investment vehicles beyond 401(k) plans. Notably, 40% of these high-contribution savers had previously paused or modified their retirement savings at some point.

Principal Asset Management has successfully closed its Principal Data Center Growth & Income Fund with a substantial $3.64 billion capital raise, exceeding the target from a diverse global investor base. The fund, which represents Principal's third discretionary data center-focused vehicle, is expected to capitalize over $8 billion of hyperscale development assets across the United States in partnership with Stream Data Centers.

The fund closure strengthens Principal's position in digital infrastructure investments, with Principal Real Estate managing over $100 billion in global real estate assets. As a top 10 global real estate manager, Principal Real Estate has been investing in data centers since 2007, currently maintaining data center assets under management and a construction pipeline valued at $11 billion.

Principal Asset Management has appointed Brant Wong as head of retirement solutions to spearhead the expansion of their retirement investment franchise. Wong, a 30-year industry veteran and former J.P. Morgan executive, will focus on connecting client needs with product innovation across asset management and U.S. retirement businesses.

The company, which manages nearly $320 billion in retirement AUM, is expanding its investment solutions with new offerings including the Principal® LifeTime Strategic Index CITs, a passive target date fund. Recent additions to their portfolio include personalized target date options and a hybrid QDIA combining target date strategies with managed account services.

Principal Financial Group (PFG) reported strong financial results for 2024, with full-year non-GAAP operating earnings per diluted share of $7.65, marking an 11% increase. The company returned $1.7 billion to shareholders, including $1.0 billion in share repurchases and $0.7 billion in dividends.

Key highlights include assets under management of $712 billion and assets under administration of $1.7 trillion. The Board approved a new $1.5 billion share repurchase authorization and increased the Q1 2025 dividend to $0.75 per share, a 9% increase from Q1 2024.

For 2025, PFG provided guidance aligned with long-term targets: 9-12% annual non-GAAP operating EPS growth, 75-85% free capital flow conversion, 14-16% non-GAAP ROE, and $1.4-$1.7 billion in capital deployment. The company maintains a strong financial position with $1.6 billion in excess capital and a 404% statutory risk-based capital ratio.

Principal Financial Group research reveals key insights about retirement savings and small business outlook for 2025. While 88% of Americans are saving for retirement, with 89% using employer plans and 58% contributing at least 9% of annual income, there's a notable confidence gap. 34% feel behind on retirement goals and 32% are uncertain about maintaining their living standard post-retirement.

The study highlights misconceptions about retirement planning, with 56% believing they need 30x their annual salary saved by age 65, though 10x may suffice. Additionally, 54% incorrectly assume they can safely withdraw 10% of retirement savings annually. On the business front, small-to-midsized business owners show cautious optimism, with 64% positive about their 12-month outlook despite decreased confidence in U.S. economy (14-point drop) and local economies (12-point drop). Employee retention concerns fell from 46% to 32%, while talent attraction worries dropped from 39% to 33%.

Principal Financial Group (Nasdaq: PFG) has announced that Amy Friedrich, president of Benefits & Protection, will participate in a fireside chat at the UBS Financial Services Conference on February 10, 2025, at 11:20 a.m. Eastern Time. The session will be available via audio webcast at principal.com/investor.

Principal Financial Group is a global financial company with a 145-year history, serving over 68 million customers and employing nearly 20,000 people as of September 30, 2024. The company focuses on helping people and businesses with planning, protection, investment, and retirement services. Principal has earned recognition as one of the 2024 World's Most Ethical Companies by Ethisphere, is a member of the Bloomberg Gender Equality Index, and has been named a 'Best Places to Work in Money Management.'