U.S. Fund Looks to Buy 'Boutique' Asset Firms

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New York-based Principal Global Investors is planning to purchase boutique asset management firms which focus on emerging markets, Reuters reports.

The $311 billion fund manager will likely close a real estate acquisition by the end of this year.

"It's hard to say, but I would be a little disappointed if we don't close at least one during the remainder of this year," McCaughan told Reuters, without identifying potential targets. 
PGI, which bills itself as the 19th-largest U.S. pension manager, wants to expand beyond the U.S. into European and Asian markets. 

Emerging markets remain a focus for PGI, as they offer strong long-term investment options. 

"We are actively looking not only at emerging, but at so-called 'frontier' markets, the smaller and newer markets. So that would be a second broader area and that would be fixed income or equities," Mr. McCaughan said.