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 (Holdings Report)
Reporting Period: Quarter ended September 30, 2008
Submission Date: November 07, 2008
Scope: This report aggregates holdings for Principal Financial Group and four other affiliated managers: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Life Insurance Co.; and Principal Financial Services, Inc.
Key Financial Metrics
Total Portfolio Value: $22,405,128,000 (approx. $22.4 billion)
Total Number of Holdings: 2,146 entries
Asset Class: Primarily U.S. and International Equity Securities (Common Stock, ADRs, REITs).
Voting Authority: The vast majority of holdings are reported with "Sole" voting authority. A small subset of holdings (e.g., Acadia Realty Trust, Boston Properties, Simon Property Group) lists "Shared" voting authority.
Material Changes and Portfolio Composition
Top Holdings by Value (Selected):
- General Electric Co: $11,592,874,000
- Exxon Mobil Corp: $5,789,459,000
- Microsoft Corp: $7,353,697,000
- Johnson & Johnson: $3,602,084,000
- Wells Fargo & Co: $3,966,076,000
- Verizon Communications Inc: $2,857,132,000
- Walmart Stores Inc: $2,759,860,000
- Time Warner Inc: $2,733,133,000
- Procter & Gamble Co: $3,438,864,000
- Cisco Systems Inc: $6,479,210,000
Sector Exposure: The portfolio demonstrates significant concentration in Financials (Banking, Insurance), Technology, Healthcare, Energy, and Consumer Staples. Notable positions include major banks (Bank of America, Citigroup, JPMorgan Chase) and energy giants (Chevron, ConocoPhillips).
Guidance, Outlook, and Risks
Management Commentary: Form 13F filings are statutory disclosures of equity holdings and do not contain management commentary, earnings guidance, or forward-looking outlooks.
Risks and Contingencies: The filing does not disclose specific risk factors or contingencies. However, the portfolio's heavy weighting in financial institutions and energy sectors reflects exposure to the market volatility prevalent in the third quarter of 2008.
Unusual Items: The report includes holdings in various Real Estate Investment Trusts (REITs) and international ADRs, indicating a diversified global strategy. No derivatives (puts/calls) are reported in the "Put/Call" columns for the listed securities.
Investor Verification Checklist
- Concentration Risk: Verify the impact of the top 10 holdings (approx. 30-40% of total value) on overall portfolio performance.
- Financial Sector Exposure: Assess the specific risk exposure to major U.S. banks (e.g., Citigroup, Bank of America, Wachovia) given the 2008 financial crisis context.
- REIT Holdings: Review the "Shared" voting authority entries for REITs (e.g., Ventas, Simon Property Group) to understand co-investment structures.
- International Exposure: Confirm the valuation and liquidity of significant ADR positions (e.g., Petrobras, PetroChina, Royal Dutch Shell).
- Reporting Completeness: Note that this 13F report covers only equity securities; it does not disclose fixed income, cash, or private equity holdings.