Principal Financial Group: 2Q26 AUM Disclosure Implies Elevated Outflows in Asset Management Business

Research evidence excerpt

Principal Financial Group: 2Q26 AUM Disclosure Implies Elevated Outflows in Asset Management Business

J P M O R G A N North America Equity Research

22 July 2026

Principal Financial Group Neutral

PFG, PFG US

2Q26 AUM Disclosure Implies Elevated Outflows in Price (21 Jul 26):$109.57

Asset Management Business

Insurance - Life & Nonlife

PFG’s latest AUM disclosure suggests outflows in investment management that Pablo S. Singzon AC

are likely to be worse than consensus expectations. Although a single quarter of (1-212) 622-2295

flow performance is not dispositive, we would expect investor focus on PFG’s pablo.s.singzon@jpmorgan.com

ability to convert its pipeline (more than $9 billion as of 1Q26 earnings call) to Kevin Wijendra

increase. (1-212) 622-7054

kevin.wijendra@jpmorgan.com

• PFG’s latest AUM disclosure suggests elevated outflows for Principal J.P. Morgan Securities LLC

Asset Management (investment management and international). On July

20, 2026, PFG filed an 8-K disclosing AUM as of June 30, 2026 for Principal

Financial Group ($808 billion, with $602 billion from investment

management, $169 billion from international, and $38 billion from other PFG

entities), including a market impact of +6.4% for the quarter. Although PFG’s

quarterly AUM disclosure is not new, Principal only started disclosing market

impacts more consistently in 4Q25, which can be used to back into expected

intra-quarter flows for the Principal Asset Management complex. There is

some uncertainty in using PFG’s AUM disclosure to estimate net flows as a full

AUM rollforward of entities associated with “Other PFG Entities” is not

provided by the company (other entities include PFG’s bank and sub-advised

AUM). However, using what we think are reasonable net cash flow and market