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$PFG 1Q15 10-Q: The acquisition of AXA’s Mandatory Provident Fund & Occupational Retirement Schemes Ordinance pension business in Hong Kong for circa $335MM is expected to close in 2Q15, subject to regulatory approvals. Upon approval, PFG will nearly double the AUM in its Hong Kong pension business to $6Bil.
$PFG said Julia Lawler, senior executive director of Principal Portfolio Strategies, the asset allocation boutique within Principal Global Investors at Principal, will become the next Chief Risk Officer effective Jan. 1, 2018. After 35 years, SVP and current chief risk officer Greg Elming announced his intentions to retire as of March 31, 2018.
$PFG elected Amy C. Friedrich as President of United States Insurance Solutions effective immediately. She succeeds Deanna Strable-Soethout who became CFO in February. The BoD also named Gary P. Scholten as Chief Digital Officer effective immediately. This is in addition to his role as EVP and Chief Information Officer.
$PFG said revenues at its business in Chile is growing at 7%. In 1Q17, assets under management were $44Bil. The company believes the operations and assets for this business are resilient and it will continue working to improve investment performance and customer service.
$PFG said M&A is an integral part of its strategy and the company primarily looks for accretive transactions. The main reason for exploring M&A opportunities is to add additional capabilities. $PFG is positive about its current portfolio of businesses and capabilities and any potential transaction would have to be very favorable financially.
$PFG reported a 5% drop in 1Q17 profit. Net income available to common stockholders was $348.9MM or $1.19 per share compared to $368MM or $1.25 per share in the prior year quarter. Operating EPS rose 31% to $1.27. Assets under management were up 13% to $619.7Bil on a trailing 12 month basis.
$PFG announced that Rex Auyeung, chairman of Principal Asia, will retire on June 2017, after 23 years of services. Thomas Cheong, vice president of North Asia, and Pedro Borda, vice president of South Asia and India, will lead business operations in the region and will report directly to Luis Valdes, President.
$PFG said its BoD has authorized a quarterly common stock dividend of $0.45 per share for 1Q17, bringing the trailing 12-month dividend per share to $1.68, an 11% increase compared to last year. This dividend will be payable on March 31, 2017, to shareholders of record as of March 6, 2017.
$PFG's total asset under management, or AUM, as of Dec. 31, 2016 was $591,6Bil, up 12% on a trailing twelve month basis, reflecting $19.4Bil in net cash flows and strong investment performance. Principal International had AUM of $137/1Bil, which excludes $101.3Bil of AUM in its joint venture in China that is not part of reported AUM.
Financial services company $PFG reported a 25% jump in 4Q16 earnings driven by higher operating earnings, increased assets under management, as well as strong sales and client retention. Net income rose to $318MM or $1.09 per share from $253.6MM or $0.86 per share last year. Operating EPS increased to $1.27 from $1.02.
$PFG said Pat Halter, current CEO and senior executive director of Principal Real Estate Investors, will take over as COO for Principal Global Investors. Mr. Halter will continue to lead Principal Real Estate Investors along with his duties at Principal Global Investors. Todd Everett will assume additional duties at Principal Real Estate Investors.
$PFG expects GAAP effective tax rate of 16-18% and operating effective tax rate of 21-23%. $PFG predicts $800MM to $1.1Bil of total capital deployed for common stock dividends, strategic acquisitions, share repurchases and to provide financial flexibility. $PFG sees weighted average number of common shares outstanding of 288-292MM.
$PFG announced final tender results for its tender offer to purchase for cash its 6.05% senior notes due 2036 in aggregate of up to $150MM. According to the tender agent, $94.38MM of the notes had been validly tendered and not validly withdrawn in the offer.
$PFG announced early tender results for its previously announced tender offer to buy for cash its 6.05% senior notes due 2036 in aggregate of up to $150MM. According to information provider by tender agent, $93.81MM aggregate of notes had been validly tendered and not validly withdrawn in the 6.05% tender offer.
$PFG reported that foreign currency favorably impacted its business year-over-year for the first time in five years. The company added that weakening of the dollar occurred since the beginning of 2016. On constant currency basis, $PFG expects mid to upper teens growth rate in international businesses.