Principal Financial partners with CIMB Group

Des Moines-based Principal said the business, CIMB-Principal Islamic Asset Management, is jointly owned by both companies and will operate from the Malaysia International Islamic Financial Center.

It will offer global funds management and retirement services by combining Kuala Lumpur-based CIMB Group's expertise in Islamic finance with the 129-year track record of Principal in a wide range of financial products and services.

CIMB-Principal will manage and distribute Islamic institutional mandates and unit trust funds in Asia, Europe, the Americas and the Middle East. CIMB Group is the largest investment bank in Southeast Asia and the second largest retail bank in Malaysia.

"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," said Larry Zimpleman, Principal's CEO, in a statement.

Shariah investment rules prohibit charging or paying interest and investing in non-Islamic businesses.

Principal shares rose 48 cents to $38.13 in midday trading. Shares have traded in a 52-week range of $34.80 to $70.85.

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