SEC Filing Summary: Principal Financial Group Inc (13F-HR)
Business Context and Reporting Period
Reporting Manager: Principal Financial Group, Inc.
Filing Type: Form 13F Combination Report (includes holdings for Principal Financial Group and four other affiliated managers).
Reporting Period: Quarter ended September 30, 2009.
Submission Date: November 11, 2009.
Location: Des Moines, Iowa.
Key Financial Metrics
Total Portfolio Value: $21,886,986,000 (approx. $21.9 billion).
Total Number of Holdings: 2,191 entries.
Asset Class: The filing consists exclusively of equity securities (common stock, preferred stock, and ADRs).
Debt, Liquidity, and Cash Flow: Not applicable. Form 13F reports only long equity positions and does not disclose debt, cash balances, or operating cash flows.
Material Changes and Portfolio Composition
Top Holdings by Value (Selected):
- General Electric Co: ~$16.4 billion (269,671,000 shares).
- Citigroup Inc: ~$19.9 billion (96,370,000 shares).
- Bank of America Corp: ~$12.8 billion (216,853,000 shares).
- Microsoft Corp: ~$8.7 billion (225,021,000 shares).
- Johnson & Johnson: ~$3.2 billion (195,411,000 shares).
- Exxon Mobil Corp: ~$5.8 billion (396,642,000 shares).
- Verizon Communications Inc: ~$3.0 billion (90,124,000 shares).
Sector Exposure: The portfolio demonstrates significant exposure to the Financials sector (Citigroup, Bank of America, Wells Fargo, JPMorgan Chase) and Technology sector (Microsoft, Intel, Cisco, Oracle). There is also substantial allocation to Healthcare (Pfizer, Merck, UnitedHealth Group) and Energy (Exxon Mobil, Chevron, ConocoPhillips).
Guidance, Outlook, and Risks
Management Commentary: Not provided. Form 13F is a regulatory disclosure of holdings and does not contain management discussion, financial guidance, or forward-looking statements.
Risks and Contingencies: Not disclosed in this filing. The document lists holdings but does not detail risk factors, derivatives usage (other than standard call/put options which are minimal or absent in this summary view), or contingent liabilities.
Unusual Items: The filing includes a "Combination Report" status, aggregating data from four other managers (Spectrum Asset Management, Columbus Circle Investors, Edge Asset Management, and Post Advisory Group) as well as internal subsidiaries (Principal Global Investors, Principal Real Estate Investors, Principal Life Insurance Co, Principal Financial Services).
Investor Verification Checklist
- Concentration Risk: Verify the impact of the massive positions in distressed financials (Citigroup, Bank of America) on the portfolio's volatility given the 2009 market context.
- Valuation Basis: Confirm that the reported values reflect market prices as of September 30, 2009, and not subsequent trading activity.
- Manager Attribution: Distinguish between holdings managed directly by Principal Financial Group versus those managed by the four affiliated managers listed in the combination report.
- Missing Data: Note that this filing does not provide data on short positions, derivatives (other than listed options), or non-equity assets (bonds, cash, real estate).