U.S. group has appointed first CEO in the country since debut in 1999
07/26/2022
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Robert Van Dijk — Foto: Silvia Costanti/Valor
Principal Financial Group, a U.S.-based conglomerate with $714 billion under management, has appointed a CEO in Brazil for the first time since its debut in the country in 1999. Robert van Dijk will be in charge of developing and executing the strategy and expansion in the country and making the connection between the local business and the international brand better known.
In Brazil, Principal owns Claritas, an asset management company with R$9 billion under management, and Brasilprev, a joint venture with Banco do Brasil with R$328.7 billion – considering its 25% stake. It has a similar stake in Ciclic, a digital insurance brokerage platform.
According to Barbara McKenzie, senior executive director at Principal Global Investors, the idea of having local leadership is aligned with what Principal has in other markets it considers key to its expansion. “We had one person taking care of each one of the brands, but it was necessary to have a more holistic approach to the business,” she told Valor. “Robert’s presence helps tie the operations of the three companies together better, bringing more traction to the growth as a whole.”
Mr. Van Dijk is a well-known name in the Brazilian capital and investment market. He was the head of Anbima, the association that represents the sector, led Banco Votorantim’s asset management business and spent more than a decade at Bradesco’s asset management company. He had been working recently at Hieron Family Office, a wealth management firm he co-founded in 2019. In his 40-year career, Mr. Van Dijk has previously worked as an adviser to Bovespa and BM&F, the former stock markets now reunited as B3.
The executive will report to Roberto Walker, CEO of Principal Latin America, and Pat Halter, CEO of Principal Global Investors, Principal’s asset management arm.
Despite the interest rate hike in the country, with the key interest rate Selic back to double-digit levels, and the currency depreciation, Brazilians investors are going global, which encouraged the company to strengthen local operations, Ms. McKenzie says. “The timing is never going to be perfect, but as the group looks at the importance of the market and the demand, in the long run [the adverse environment] gets diluted, so it makes sense.”
Principal started in Brazil through its partnership with BB in Brasilprev before buying a stake in Claritas in 2012. The remainder of its stake in the asset management company was acquired in 2016. “The expectation is to continue to see demand for international assets and increasingly be known as Principal,” the executive continues. The individual brands will co-exist but giving greater visibility to the global brand.
Some products from Principal’s international portfolio are already offered in the Brazilian market through third-party platforms. Ciclic can be a channel to deepen distribution, but this is not in the group’s immediate plans.
*By Adriana Cotias — São Paulo
Source: Valor International