Principal sees two large institutional outflows to impact net cash flow by $5B

Daniel Houston, Chairman, President and CEO of Principal Financial, stated during the company’s earnings call, according to a transcript: “We have several real estate opportunities boosting our optimism for the coming quarters. We expect additional funding in the fourth quarter in our new data center fund and our China real estate joint venture as discussed last quarter. We have a strong pipeline of committed yet unfunded real estate mandates currently over $6B that we will put to work opportunistically. Looking at asset management in total, we are aware of two large institutional outflows of similar size that will impact net cash flow by approximately $5B in total. One client is planning to take the funds in-house while the other is moving to a passive option. We expect one of the outflows to occur in the fourth quarter and the other early in the first quarter of 2024.” Principal Financial shares are down about 1% to $67.83 in morning trading.