Principal Global Investors, LLC, a leading global asset manager and a member of the Principal Financial Group® (NYSE:PFG), announces it has been approved for a $150 million quota as a Qualified Foreign Institutional Investor (QFII) by the State Administration of Foreign Exchange.

Principal Global Investors was awarded the QFII designation in January 2012. The $150 million quota can be directly invested into the local China A-share markets.

Jim McCaughan, CEO of Principal Global Investors, said, "Being able to invest directly in the China A-share markets is a valuable and highly sought-after privilege. We are pleased to participate in one of the fastest-growing economies in the world. Despite the recent slowdown in growth, China continues to be an area of increasing focus and opportunity for sophisticated institutional investors."

Principal Global Investors' China strategy is supported through its regional headquarters in Singapore, a regional office in Hong Kong, the global headquarters in Des Moines, Iowa, and coordinated through a representative office in Beijing. The investment team responsible for the capability is located in Hong Kong, Singapore and the United States.

The QFII license and quota represent the next step in The Principal's ongoing involvement in China, an effort that dates back to 1994. In 2005, The Principal established a joint venture with China Construction Bank, the second largest commercial bank in China. The joint venture, China Construction Bank-Principal Asset Management (CCB-PAM), manages both equity and fixed income products for local clients.

Principal Global Investors will engage CCB-PAM as a consultant in order to benefit from CCB-PAM's knowledge of evolving macro-economic news and political events, and the potential impact on the capital markets. This engagement does not impact the investment decision-making process of either firm.

Tony Chu, portfolio manager with Principal Global Investors, added, "For those investors fortunate enough to access them, the China A-share markets currently offer one of the most attractive investing opportunities in the world. Even with the recent deceleration, China's GDP growth is still among the strongest in the world, and is now showing signs of stabilizing. In fact, temporary weakness should be viewed as a good opportunity for long-term oriented institutional investors to enter the China A-share markets. The A-share markets also provide a diverse and rich opportunity set not available to most global investors through the Hong Kong and offshore listed markets."

About Principal Global Investors:
Principal Global Investors is a diversified asset management organization and a member of the Principal Financial Group®, with expertise in equities, fixed income and real estate investments, as well as specialized overlay and advisory services. Principal Global Investors manages $259.8 billion in assets1 primarily for retirement plans and other institutional clients2.

About the Principal Financial Group
The Principal Financial Group® (The Principal ®)3 is a global investment management leader including retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal Financial Group has $367.1 billion in assets under management4 and serves some 18.2 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

1 As of June 30, 2012
2 Principal Global Investors is the asset management arm of the Principal Financial Group ® (The Principal ®)¹ and includes the asset management operations of the following subsidiaries of The Principal: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Enterprise Capital, LLC; Spectrum Asset Management, Inc.; Post Advisory Group, LLC; Columbus Circle Investors; Edge Asset Management, Inc.; Morley Financial Services Inc.; Finisterre Capital, LLP; Origin Asset Management, LLP; Principal Global Investors (Europe) Limited; Principal Global Investors (Singapore) Ltd.; Principal Global Investors (Australia) Ltd.; Principal Global Investors (Japan) Ltd.; Principal Global Investors (Hong Kong) Ltd.; CIMB-Principal Islamic Asset Management Sdn. Bhd.; and the majority owned affiliates of Principal International, Inc. Assets under management includes assets managed by investment professionals of Principal Global Investors under dual employee arrangements with other subsidiaries of The Principal and assets managed in accordance with investment advice provided by Principal Global Investors through the delivery of a model.
3 "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
4 As of June 30, 2012.

Principal Financial Group
Adam Lackey, 515-362-0482
lackey.adam@principal.com