US asset manager Principal Financial Group (PFG) has formally renamed its Southeast Asian joint venture with Malaysia’s CIMB Group after becoming the majority shareholder a year ago.
CIMB-Principal Asset Management has been renamed Principal Asset Management Bhd after the US company raised its stake to 60% from 40% previously.
CIMB-Principal Islamic Asset Management, which was previously equally owned by the joint venture partners, is now Principal Islamic Asset Management Sdn Bhd after PFG raised its shareholding to 60%.
The move to acquire majority stakes in the two companies was announced in January 2018 and completed on April 10, 2018.
According to Juan Ignacio Eyzaguirre Baraona, chief executive officer of Principal ASEAN, the rebranding will help "reinforce" the partnership between PFG and CIMB Group, Malaysia’s second largest lender.
"CIMB Group helped establish our local presence and now, with PFG taking on the role of primary shareholder, we are able to bring additional global perspectives and asset management capabilities into the region," he said in a speech at the launch of the new names on April 25.
Mr. Eyzaguirre Baraona told reporters later that he sees huge opportunities in Malaysia and other parts of Southeast Asia.
"We believe that Southeast Asia will be an important economic player. By 2025, this region will be the fourth largest economy, driven by the rising middle-income group," he said.
Principal Asset Management Bhd had over 80 billion ringgit (US$19.35 billion) of assets under management at the end of 2018. Iowa-based PFG had $626.8 billion of assets.