The firm said in a September 28 statement that Tim Stumpff, most recently president of fund of hedge funds manager Liongate Capital Management, in which Principal Global Investors acquired a 55% stake in 2013, has become head of its £13 billion European business.
Stumpff, who has been with the Principal Financial Group, Principal Global Investors’ parent, since 2003 and is based in London in his new role, has replaced Nick Lyster, who has moved to a newly created role as global head of wealth advisory services at Principal.
Both assumed their new roles in August.
Lyster has been Europe CEO at Principal Global Investors since 2006. According to the firm, he was jointly responsibly for opening its London office in 1999.
Lyster, who will continue to be based in London, said in the statement that it was “time to take on a new challenge”. He added: “We have seen a significant increase in demand for our funds and our sub-advisory services in the past year from wealth managers requiring the adaptability that our multi-boutique model provides. I am confident that this demand will continue to grow and look forward to leading Principal’s expansion in this market.”
Stumpff told Financial News that Lyster had left the European business in “great shape”. He added: “We are well aware [of the] industry backdrop. There are certainly challenges in flows, but across Principal Global Investors worldwide and in Europe we continue to see inflows and demand for our products.”
He said the firm’s high yield, emerging market, real estate and global equity products had proved popular. He declined to provide an assets under management target for the European business.
Stumpff has worked in several roles across Principal’s boutiques. He was president of $ 17.1 billion fixed income manager Morley Financial Services before joining Liongate as a managing director in 2014. He was promoted to Liongate’s president in 2015, amid a senior reshuffle which saw the departures of its co-founders Randall Dillard and Jeff Holland.
Liongate, which at one point had been one of London’s best-known hedge fund investors, had seen its assets slip from $ 2.1 billion in April 2013 to about $ 400 million two years later.
Stumpff, who is still involved with the closure of Liongate, said: “There has been a lot of disruption and continues to be a lot of disruption in the hedge fund space overall, and funds on occasion close down.
“We took a long look at the business and the situation, and came to the conclusion it was in the best interests of investors to wind down.”
He added that Principal Global Investors’ European business was in an “absolutely different situation” than when he joined Liongate in 2014.
Jim McCaughan, CEO of Principal Global Investors, said: “[Stumpff] will be able to deploy his exceptional knowledge of the European asset management industry and extensive experience at Principal to provide the best possible outcomes for our investors.”