News and Press

(Des Moines, Iowa) – Principal Global Investors, LLC, a leading global asset manager and a member of the Principal Financial Group® (NYSE:PFG), today announced a definitive agreement to acquire a 74% stake in Origin Asset Management, LLP, (Origin), for approximately US $66 million based on current exchange rates (GBP £40.7 million). Origin is an established global equity specialist based in London.   

“We are delighted to be entering into this partnership,” said Jim McCaughan, chief executive officer of Principal Global Investors. “Origin’s proven capabilities in managing global equities will be very attractive to our clients and advisors around the world.” 

Origin was founded in 2005 by a respected team of investment managers in partnership with IPGL, a private holding company. The firm now has approximately US $3 billion in assets under management in Global and International equities. Additionally, Origin recently launched two new products: Global Smaller Company and Emerging Market Funds. Origin partners will retain a 26 percent stake in the business and will be reinvesting a substantial share of their consideration into funds managed by the firm. All passive investors in Origin, including IPGL, will sell their entire holdings to The Principal.

“We are excited to be teaming up with Principal Global Investors,” said Nigel Dutson, managing partner of Origin. “This strategic partnership will allow us to continue the development of our business around the world while maintaining our operating independence, distinctive investment process and organizational culture.” Through this transaction, Principal Global Investors will enhance its global equity capabilities and further strengthen its well-established multi-boutique model. Origin will benefit from access to The Principal’s global presence, product development expertise and best practice support infrastructure.

“Origin’s strong reputation and distinct investment expertise complements our existing product suite,” said McCaughan. “This partnership also increases our investment capabilities in emerging markets and in global small and mid-cap companies, where additional high-quality investment capacity is much sought after, but in relatively short supply.”  

The transaction is expected to close in October 2011, pending regulatory approval. Excluding transaction and integration costs, Principal Financial Group estimates the acquisition will be EPS neutral in 2011 and slightly accretive in 2012. Fenchurch Advisory Partners advised The Principal on the transaction.  This is the third acquisition announced this year as part of Principal Financial Group’s 2011 capital deployment strategy. In addition to these acquisitions, The Principal’s Board of Directors in May renewed authorization to repurchase up to $250 million of the company's outstanding common stock.

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