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INTERVIEW-PGI seeks to acquire boutique funds in 2010

Published 12/16/2009, 02:14 AM
Updated 12/16/2009, 02:18 AM

TOKYO, Dec 16 (Reuters) - Principal Financial Group's asset management arm is actively looking for opportunities to acquire boutique fund management firms over the next 12 months, the chief executive of the unit said on Wednesday.

Many boutique asset managers have suffered from falling sales and are looking for partners, Jim McCaughan, CEO of Principal Global Investors (PGI) told Reuters in an interview.

"We've made several acquisitions. We have a successful track record of doing so. So we are optimistic that the next year we'll see opportunities for us to do more," he said.

PGI, the asset management arm of Iowa-based life and health insurer Principal Financial Group, oversees about $215 billion in assets.

It has acquired three U.S.-based boutique fund managers -- Post Advisory Group, which specialises in high-yield bonds, Spectrum Asset management, which specialises in preferred securities, and Columbus Circle Investors, which manages U.S. growth stocks.

PGI is also considering asset management firms outside of the United States, including European and Asian firms.

"I have nothing specific to report yet, but I'll be disappointed if we don't find some good opportunities over the next 12 months," McCaughan said. (Reporting by Michiko Iwasaki and Chikafumi Hodo; Editing by Edwina Gibbs)

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