Business Context and Reporting Period
This Form 8-K is a Regulation FD disclosure filed by Principal Financial Group, Inc. on July 29, 2022. The report provides Assets Under Management (AUM) data by asset manager for the quarter ended June 30, 2022, prior to the release of the company's quarterly earnings.
Key Financial Metrics
The filing focuses exclusively on AUM figures and does not provide data on revenue, profit, cash flow, margins, debt, or liquidity.
- Principal Global Investors AUM: $469.8 billion
- Other Entities AUM: $161.9 billion (Includes Principal International, Principal Bank, insurance segment assets, and sub-advised assets within the RIS segment)
Material Changes
Effective in the second quarter of 2022, a net $19.9 billion of Principal Global Investors (PGI) Managed AUM was transferred to third parties. This transfer resulted from a transaction to reinsure in-force U.S. retail fixed annuity and universal life insurance with secondary guarantee blocks of business.
Outlook, Risks, and Management Commentary
Management highlighted specific portfolio exposures relevant during times of market dislocation and wider dispersion of returns:
- US Equity AUM: Exposure to small and mid-cap products.
- Fixed Income AUM: Exposure to high yield and preferred securities.
Additionally, AUM associated with Principal International is translated to U.S. dollar equivalents using end-of-period spot foreign exchange rates. The full financial supplement containing these AUM figures is expected to be posted to the investor relations website on or about August 8, 2022.
Investor Verification Checklist
- Verify the final AUM figures in the upcoming quarterly financial supplement scheduled for August 8, 2022.
- Confirm the impact of the $19.9 billion AUM transfer on future earnings and fee income.
- Monitor performance of small/mid-cap equities and high-yield/preferred securities given the stated portfolio exposures.
- Review the full quarterly earnings release for revenue, profit, and liquidity metrics not included in this 8-K.