Principal Integrates Businesses With Renewed Focus on Retirement

Owais Rana

Owais Rana was named head of investment solutions at Principal Asset Management in February, as the firm plots integrating the global asset management and international pension businesses under the Principal Asset Management brand, it announced this week in a press release.

Rana is now responsible for “all aspects” of the Principal outsourced CIO business, which includes building solutions and product offerings adhering to the firm’s investment model, a spokesperson said via email.  

“Rana took on expanded leadership including the OCIO business for Principal effective February 11, 2023,” the spokesperson explains. “Within this role Rana will support all aspects of the existing OCIO business. There are no changes to OCIO solutions or investment process as a result of this change.”

In the new role, Rana reports to David Blake, Principal’s global head of public markets.

Rana joined Principal in May 2022 as a managing director and head of LDI Solutions, the spokesperson confirmed.

Integrating Businesses

Principal is “blending leadership, investment capabilities and client-facing teams,” this week’s release stated, with a goal of providing global and local investment capabilities and client support across more than 80 markets.

“The firm has begun to combine research, risk management and product strategy among its global, regional and local markets to create more value and efficiency,” the press release stated.

Integrating the businesses under Principal Asset Management formalized the partnership between previously separate units “to create a single business unit with the power of combined leadership, investment and go-to-market capabilities.”

“With the right strategy, structure, and teams—we can deliver greater differentiation and value to our clients,” stated Patrick Halter, president of Principal Asset Management, in the release.

Principal combined its global leadership team to reflect the integration, according to the release.

Kamal Bhatia was named head of global investments, in addition to his ongoing roles as COO and as president and CEO of Principal Funds, the press release stated.

Principal also reorganized its global and local investment capabilities under the single brand, segmented into private-market, public-market and multi-asset investments, according to the press release. Leadership personnel moves include:

• Todd Everett is now global head of private markets, including corporate credit, real estate credit and real estate equity. Everett previously led the global real estate team.
• David Blake becomes global head of public markets and is responsible for global equities and global fixed income capabilities and trading resources. Blake previously led the global fixed income team.
• Todd Jablonski remains global head of multi-asset investing and oversees asset allocation and multi-asset investment capabilities; quantitative and indexed portfolio management; and supporting research.

“The new structure will bring together specialized investment teams under a single leader, enabling the teams to work more closely together, leveraging one another’s expertise and resources to deliver more for clients,” Principal stated.  

Renewed Retirement Focus

Principal said the reorganization reflects the firm’s renewed its focus on retirement plans and asset management, with a focus on the small to medium-sized business market.

In 2021, Principal exited U.S. retail fixed annuities—by discontinuing new sales of deferred annuities, payout annuities and indexed annuities—yet continues to sell variable annuities because these have an important role within the firm’s suite of retirement products.

Principal Financial Group ranked fourth for total nonqualified deferred compensation plan liabilities among plans governed by Section 409A of the Internal Revenue Code, according to the 2020 PLANSPONSOR Recordkeeping survey and fifth for total NQDC participants.

One year ago, Principal completed the integration of Wells Fargo custody clients, and in 2020 the company debuted a retirement plan designed for businesses with fewer than 100 employees.

Principal acquired the Wells Fargo retirement plan business in 2019.

In the U.S., Principal Retirement and Income Solutions serves more than 46,000 employers, nearly 12 million participants and has total retirement assets valued at $447 billion, as of December 31, 2022, according to data shared by a spokesperson. Worldwide, Principal has $635.3 billion in assets under management.