The Principal Financial Group is purchasing a 60 percent indirect ownership stake in Claritas Administração de Recursos Ltda./Claritas Investments, Ltd., a leading Brazilian mutual fund and asset management company with more than the equivalent of $27 billion in assets under management.
The Sao Paolo-based company manages equity funds, balanced funds, managed accounts and other strategies for affluent clients and institutions through its multi-channel distribution network.
"Entering the Brazilian mutual fund and asset management market has long been a strategic priority for The Principal and we are pleased to partner with the talented team at Claritas," said Luis Valdes, president and CEO of Principal International. "The company's strong management team, solid investment track record, value added products for Brazilians and potentially international customers, and diversified distribution through financial advisors are all important competencies as we continue to grow our mutual fund and asset management business in Latin America."
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This is the second business partnership for The Principal in Brazil. Since 1999, The Principal has offered pension and annuity products through Brasilprev, its joint-venture operation with Banco do Brasil. With assets under management of US$27.4 billion, Brasilprev is currently the fastest-growing and third-largest retirement player in Brazil.
According to Larry D. Zimpleman, chairman, president and CEO of The Principal, "We will continue to deploy capital for acquisitions that are aligned with our focused strategies and complementary to our existing businesses. While Brasilprev and Claritas target different markets, both support our goal to be a pension and long-term investment leader in Brazil."
The Claritas transaction is expected to be earnings per share neutral in 2012 and accretive to EPS and return on equity thereafter. The deal is expected to close in April. Purchase price was not disclosed.
The Principal Financial Group is a global investment management company that offers retirement services, insurance solutions and asset management.
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