State Street Expands Partnership with Principal Financial Group for Mutual Fund Servicing

Assets Under Custody

$54.5 trillion

Total assets held by State Street under custody and/or administration as of March 31, 2026.

Assets Under Management

$5.6 trillion

Total assets managed by State Street as of March 31, 2026.

Geographic Markets

100+

Number of geographic markets where State Street operates.

§ 01 Executive Snapshot

What: State Street expands its partnership with Principal Financial Group for mutual fund servicing.
Who: State Street Corporation and Principal Financial Group.
Why it matters: This partnership enhances Principal's operational efficiency and aligns its investment offerings with scalable infrastructure.

State Street will provide custody, fund accounting, and administration services for Principal Funds starting June 4, 2026.
The expanded mandate is part of Principal's strategy to broaden its investment offerings through scalable infrastructure.
State Street has supported Principal for over a decade across various investment vehicles, including ETFs and CITs.

The partnership reflects a long-standing relationship between State Street and Principal, indicating a strong trust in State Street's capabilities.
Principal's decision to deepen its partnership aligns with a broader trend in the financial services sector towards outsourcing and strategic partnerships for operational efficiency.

The immediate consequence is enhanced operational efficiency for Principal as it grows its mutual fund business.
Long-term, this partnership may position Principal to capitalize on new investment opportunities and improve profitability through strategic outsourcing.

Potential risks include dependency on State Street's infrastructure and services, which may affect Principal's flexibility.
The competitive landscape in mutual fund servicing may pose challenges as other firms seek similar partnerships.

The successful rollout of the new services is expected to begin June 4, 2026, marking a significant transition phase for Principal.
Future developments will signal the success of this partnership, such as growth in mutual fund assets or expansion of investment offerings.

§ 07

What services will State Street provide to Principal Funds?

State Street will provide custody, fund accounting, and administration services for Principal Funds starting June 4, 2026.

Why is this partnership important for Principal Financial Group?

This partnership enhances Principal's operational efficiency and aligns its investment offerings with scalable infrastructure.

How long has State Street supported Principal Financial Group?

State Street has supported Principal for over a decade across various investment vehicles, including ETFs and CITs.