Principal Financial Group is folding four investment businesses into a new global asset management business and Monday appointed Timothy M. Dunbar as its president.
Mr. Dunbar will lead the effort to combine Principal Financial Group's four investment businesses — Principal Global Investors, Principal International, the firm's general account and RobustWealth, a digital investment advice provider, confirmed Daniel J. Houston, chairman, president and CEO of the parent company, in an interview.
The combined assets of the businesses totaled $667 billion as of June 30.
Mr. Houston said integrating the investment businesses will help Principal Financial Group better meet the needs of institutional and retail investors globally, particularly in emerging markets.
“It really makes sense for us to align the investment units,” Mr. Houston said, noting synergies and collaboration among the teams will deepen the company's investment capabilities.
As part of the restructuring, Mr. Dunbar replaced James P. McCaughan as president of the global asset management business. Patrick G. Halter succeeded Mr. McCaughan in his other position as CEO of Principal Global Investors.
Mr. McCaughan stepped down from his roles Monday and will leave the company on Sept. 30. His plans could not be learned.
Mr. Houston described Mr. McCaughan's departure as “a natural succession.”
Mr. Dunbar was executive vice president and chief investment officer of Principal Financial Group. He will not be replaced as CIO, said Jane Slusark, a Principal Financial Group spokeswoman.
Some of Mr. Dunbar's duties have been assumed by Julia Lawler, who was promoted to executive vice president of Principal Financial from senior vice president. She retains her role as chief risk officer.
Mr. Halter was chief operating officer of Principal Global Investors and will not be replaced, Ms. Slusark said.
Mr. Halter will remain CEO of Principal Real Estate Investors on an interim basis until his successor is named, said Ms. Slusark.