Principal Global Investors LLC, has been granted the designation of Qualified Foreign Institutional Investor (QFII) by the China Securities Regulatory Commission. The designation clears the way for the firm to invest in the local China A- share market.
Principal Global Investors, a diversified asset management group is a member of the Principal Financial Group, Des Moines, IA, a global investment manager that offers retirement services, life insurance solutions and asset management.
Now that Principal has obtained the QFII, they can offer clients opportunities in the Chinese market. Principal has a long history in working with China which stretches back to 1994. In 2005, Principal originated a joint venture with China Construction Bank managing both equity and fixed income products for clients.
“The ability to directly invest in the second largest economy in the world is a very attractive proposition for our clients. While the Chinese economy no longer posts double digit growth figures, the market is still expanding and many of our clients are interested in investing locally. China A shares offer investors a good opportunity to further diversify their global portfolios,” said Jim McCaughan, CEO of Principal Global Investors.