Principal shrugs off volatility in commitment to Asian markets

United States pension and asset management company Principal Financial Group remains committed to expanding its presence in the region despite the present volatile market conditions, according to Asia head Rex Auyeung Pak-kuen.

'Principal has identified Asia to be the region with high growth potential,' Mr Auyeung, the chief executive of Principal International Asia said last week.

'We have invested for long-term growth, so we are not too concerned about short-term market volatility.'

Established 120 years ago in the US, the group started expanding internationally only in the 1990s when it judged the US market had become fully mature. The company began operations in Asia in 1994 and now has offices in Hong Kong, China, India, Malaysia, and Indonesia.

Mr Auyeung said Asia now generated about 5 per cent of group revenues against 85 per cent from the US, with the remainder coming from Europe and Latin America.

However, Asia was expected to be the fastest-growing revenue source in the years ahead, he said, with double-digit growth expected annually, driven by the region's ageing population and its expanding economies which would boost demand for pension and asset management services.

'Pension reforms are still going on in China, India and Southeast Asian countries which provide a lot of opportunities for an international pension provider,' Mr Auyeung said.