Business Context and Reporting Period
Company: Principal Financial Group, Inc.
Filing Type: Form 13F-HR (Institutional Investment Manager Holdings Report)
Reporting Period: Quarter ended June 30, 2012
Report Type: 13F Combination Report (includes holdings for Principal Financial Group and 5 other affiliated managers)
Signatory: Michael Roughton, Vice President
Key Financial Metrics
Total Portfolio Value: $33,013,003,000 (approx. $33.0 billion)
Total Number of Holdings: 3,867 entries
Number of Included Managers: 5 (Principal Global Investors, Principal Real Estate Investors, Principal Life Insurance Co., Principal Financial Services, Principal Management Corporation)
Top Holdings by Value (Selected)
| Issuer | Shares Held | Value ($ Thousands) |
|---|---|---|
| General Electric Co | 13,242,245 | 241,872 |
| Wells Fargo & Co | 9,359,998 | 287,074 |
| Pfizer Inc | 13,701,473 | 286,580 |
| Verizon Communications Inc | 3,753,074 | 145,698 |
| Microsoft Corp | 10,411,308 | 278,833 |
| Johnson & Johnson | 3,167,792 | 186,958 |
| Procter & Gamble Co | 3,312,204 | 176,423 |
| Exxon Mobil Corp | 6,696,090 | 515,499 |
| Chevron Corp | 3,606,112 | 345,483 |
| Bank of America Corp | 11,309,985 | 80,155 |
Note: Values are derived from the "Value" column in the source text (in thousands). The table above lists representative large-cap holdings found in the dataset.
Material Changes and Portfolio Composition
This filing is a snapshot of holdings as of June 30, 2012. As a Form 13F, it does not explicitly state "material changes" compared to the prior quarter (March 31, 2012) within the text provided; such analysis requires comparing this dataset against the previous filing. However, the portfolio demonstrates a heavy concentration in:
- Financials: Significant positions in major banks (Wells Fargo, Bank of America, JPMorgan Chase, Citigroup) and insurance companies (MetLife, Prudential, AIG).
- Energy: Large allocations to integrated oil and gas majors (Exxon Mobil, Chevron, ConocoPhillips, Marathon Oil).
- Technology: Substantial holdings in hardware and software giants (Microsoft, Intel, Cisco Systems, Oracle, IBM).
- Healthcare: Diversified exposure to pharmaceuticals (Pfizer, Merck, Johnson & Johnson) and medical devices (Medtronic, Boston Scientific).
Guidance, Outlook, and Risks
Guidance and Outlook: The filing text does not contain management commentary, earnings guidance, or forward-looking statements. Form 13F filings are strictly regulatory disclosures of equity holdings and do not include strategic outlooks.
Risks and Contingencies:
- Concentration Risk: The portfolio holds significant positions in cyclical sectors (Energy, Financials) which are sensitive to economic downturns.
- Liquidity: While the portfolio consists of highly liquid large-cap equities, the sheer size of certain positions (e.g., millions of shares in GE, Pfizer) could impact market prices upon liquidation.
- Regulatory: As an institutional manager, Principal Financial Group is subject to ongoing SEC reporting requirements and fiduciary standards.
Important Facts for Investors to Verify
- Aggregated Reporting: Verify that the $33 billion total value includes the holdings of the 5 affiliated managers listed (Principal Global Investors, Principal Real Estate Investors, etc.), not just the parent company.
- Valuation Method: Confirm that the reported values are based on the closing market price on June 30, 2012, as required by 13F rules.
- Exclusions: Note that this report only covers equity securities (stocks, convertible securities, options, warrants). It does not disclose holdings in bonds, cash, derivatives (unless equity-linked), or private equity.
- Voting Authority: The "Voting Authority" columns indicate "Sole," "Shared," or "None." Investors should verify the extent of "Shared" authority to understand potential proxy voting dynamics.