Key Takeaways
- • Principal Financial Group has been selected as OCIO manager for Mercy Medical Center of Cedar Rapids, Iowa, a mandate of more than $500 million across endowment, operating and pension assets, according to a Principal spokesperson.
- • Mercy's endowment alone is roughly $136 million, according to its Form 990 tax filing.
- • Principal's OCIO AUM stood at $24.3 billion as of June 30, roughly placing it among the top 30 OCIO providers per P&I data, and increased by more than $5.1 billion between the start of 2025 and end of October 2026.
- • The selection was made in June, with assets onboarded as of October 1, 2026.
- • Mercy did not say whether the move to OCIO was new or whether Principal replaced a prior provider.
Summary
Principal Financial Group has been selected as the new outsourced chief investment officer (OCIO) manager for Mercy Medical Center of Cedar Rapids, Iowa, according to a spokesperson for the firm, as reported by Pensions & Investments on October 29, 2026. The mandate covers more than $500 million across the hospital's endowment, operating and pension assets, according to the spokesperson.
Mercy's endowment assets are roughly $136 million, based on its Form 990 tax filing. In a statement, Mercy Medical confirmed the selection of Principal but did not specify whether the move to an OCIO structure was new or whether Principal replaced a previous provider. The hospital said it "routinely evaluate[s] our operations and strategic partnerships" and described the decision as part of its ongoing efforts to ensure effective management and stewardship of its resources.
Principal's OCIO solutions are delivered by its investment solutions unit, an advisory team within Principal Asset Management, according to the firm's website. Principal reported $24.3 billion of OCIO assets under management as of June 30, which would make it roughly a top 30 OCIO provider, according to P&I data. The spokesperson said Principal's OCIO AUM increased by more than $5.1 billion between the start of 2025 and the end of October 2026.
The Mercy Medical selection was made in June, and the assets were officially onboarded as of October 1, according to the spokesperson. The article notes that defined contribution plans are the largest source of OCIO assets, followed by defined benefit plans, while endowment and foundation assets have been growing quickly; endowment and foundation assets combined for more than $500 billion in the 2026 P&I OCIO survey.
Mercy's endowment assets are roughly $136 million, based on its Form 990 tax filing. In a statement, Mercy Medical confirmed the selection of Principal but did not specify whether the move to an OCIO structure was new or whether Principal replaced a previous provider. The hospital said it "routinely evaluate[s] our operations and strategic partnerships" and described the decision as part of its ongoing efforts to ensure effective management and stewardship of its resources.
Principal's OCIO solutions are delivered by its investment solutions unit, an advisory team within Principal Asset Management, according to the firm's website. Principal reported $24.3 billion of OCIO assets under management as of June 30, which would make it roughly a top 30 OCIO provider, according to P&I data. The spokesperson said Principal's OCIO AUM increased by more than $5.1 billion between the start of 2025 and the end of October 2026.
The Mercy Medical selection was made in June, and the assets were officially onboarded as of October 1, according to the spokesperson. The article notes that defined contribution plans are the largest source of OCIO assets, followed by defined benefit plans, while endowment and foundation assets have been growing quickly; endowment and foundation assets combined for more than $500 billion in the 2026 P&I OCIO survey.
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