Principal Financial Group has formed a joint venture with two banks in India in order to sell long-term mutual funds and other financial services in that market.
Principal Financial will own 65% of the new company, Principal PNB Asset Management Co., while Punjab National Bank will own 30% and Vijaya Bank will own 5%. Principal Financial has sold mutual funds in India since 2000, having first entered the market via a partnership with the Industrial Development Bank of India.
"Since we first entered the Indian market, Principal has demonstrated our commitment and expertise to the Indian investment community by offering innovative financial products and services with unique approaches to distribution," said Norman R. Sorenson, president of Principal International. Principal has concentrated on retirement-oriented mutual funds in the Indian market, and these have been very well received, said Rex Auyeung, senior vice president with Principal International.