DES MOINES (AP) - Retirement fund and financial services company Principal Financial Group Inc. said it has launched an Islamic asset management business with CIMB Group of Malaysia.

Des Moines-based Principal said the business CIMB-Principal Islamic Asset Management is jointly owned by both companies and will operate from the Malaysia International Islamic Financial Center.

It will offer global funds management and retirement services by combining Kuala Lumpur-based CIMB Group's leading knowledge and expertise in Islamic finance with the 129-year track record of Principal in a wide range of financial products and services.

CIMB-Principal will manage and distribute Islamic institutional mandates and unit trust funds in Asia, Europe, the Americas and the Middle East. CIMB Group is the largest investment bank in Southeast Asia and the second largest retail bank in Malaysia.

"Our expanded mutual commitment augurs well for both our businesses as the Shariah-compliant market shows tremendous growth possibilities," said Larry Zimpleman, Principal's CEO, in a statement. "With the emergence of a rising middle class in developing markets and subsequent need for retirement planning, we believe our partnership with CIMB Group will enable us to address key markets for both conventional and Shariah-compliant products and services, particularly in Southeast Asia and the Middle East."

Shariah investment rules prohibit charging or paying interest and investing in non-Islamic businesses.

CIMB Group CEO Dato' Sri Nazir said in a statement that Principal's decision to partner its Islamic fund management arm with Malaysia's CIMB Group "represents a strong endorsement of the country's status as an international Islamic financial center."

Principal has global assets under management of over $300 billion. It offers retirement and investment services, life and health insurance, and banking through several financial services companies. It serves 18.8 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States.

Principal shares were trading up 3.7 percent, or $1.38, to $39.04. Shares have traded in a 52-week range of $34.80 to $70.85.

CIMB Group has more than 24,000 employees located in nine countries. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. It has key regional offices in Singapore, Indonesia and Thailand.

Owned by Bumiputra-Commerce Holdings Bhd, it operates its business through CIMB Bank, CIMB Investment Bank and CIMB Islamic.