Business Context and Reporting Period
This Form 8-K is a Regulation FD disclosure filed by Principal Financial Group, Inc. on January 21, 2022. The report provides Assets Under Management (AUM) data by asset manager as of December 31, 2021, 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: $546.5 billion
- Principal International and Other Entities AUM: $167.4 billion
Material Changes and Unusual Items
Several specific adjustments and events impacted the reported AUM figures:
- Internal Definition Change: Effective in the fourth quarter of 2021, $4.7 billion of AUM was moved out of Principal Global Investors and $14.1 billion was moved into Principal International and Other Entities on a prospective basis due to a change in the definition of AUM and Assets Under Administration (AUA).
- Operations Disposed: The Company exited its retail investment and retirement business in India during 2021, resulting in a $1.2 billion reduction in Principal Global Investors AUM.
- Market Exposure: Management noted exposure to small and mid-cap products in US equity AUM and high yield and preferred securities in fixed income AUM, highlighting sensitivity to market dislocations.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, earnings outlook, or specific risk factor disclosures beyond the noted market exposure to small/mid-cap equities and high-yield fixed income. The Company indicated that these AUM figures will be presented again in the financial supplement for the quarter ended December 31, 2021, expected to be posted on or about February 7, 2022.
Investor Verification Checklist
- Verify the impact of the internal AUM/AUA definition change on year-over-year comparability.
- Confirm the final AUM figures in the upcoming quarterly earnings release and financial supplement (expected February 7, 2022).
- Assess the performance of small/mid-cap US equity and high-yield fixed income portfolios given current market conditions.
- Review the full details of the India business exit and its long-term strategic implications.