DES MOINES, Iowa -- Principal Financial Group will begin courting pension funds, endowments and foundations through its new asset management subsidiary, Principal Capital Management LLC.
"We see great potential in the institutional asset management marketplace," said David Drury, chief executive officer for Principal Financial.
The new group will begin with $75.5 billion in total assets under management, most of which are general insurance assets.
Leading the new group is Dennis Francis, formerly senior vice president of investments for Principal Life Insurance Co.
Three asset management operations formerly housed within Principal Life now fall under the Principal Capital umbrella: Invista Capital Management, which had $31 billion in total assets under management as of Dec. 31.
Principal Life's commercial real estate division, which had $21 billion in total debt and equity investments under management as of Dec. 31.
Principal Life's fixed-income asset management division, which manages $23.5 billion in public and private bonds, Treasuries, stable value and foreign and domestic debt.
Dick Hibbs, formerly director of client services and sales at Boatmen's Trust Co., St. Louis, has been hired as executive vice president of sales and marketing for the new group.
Principal Capital Management will continue to manage insurance assets.
All operations are in Des Moines.
"Consolidating our investment services allows us to more effectively leverage our expertise across several asset classes," Mr. Francis said.