Principal, CIMB Create Islamic Asset Management Firm

The Principal Financial Group and CIMB Group today launched The CIMB-Principal Islamic Asset Management Sdn Bhd.

The global Islamic asset management company will operate from the Malaysia International Islamic Financial Centre (MIFC). According to a press release, CIMB-Principal Islamic, jointly owned by CIMB Group and The Principal, will offer a range of financial products and services, including global funds management and retirement services. The company will manage and distribute Islamic institutional mandates and unit trust funds in Asia, Europe, the Americas, and the Middle East.

“Our expanded mutual commitment augurs well for both our businesses as the Shariah-compliant market shows tremendous growth possibilities,” said Larry Zimpleman, president and CEO of the Principal Financial Group, in the release. “With the emergence of a rising middle class in developing markets and subsequent need for retirement planning, we believe our partnership with CIMB Group will enable us to address key markets for both conventional and Shariah-compliant products and services, particularly in Southeast Asia and the Middle East.”

CIMB Group is the largest investment bank in Southeast Asia and the second largest retail bank in Malaysia, the release said.