PFG

SEC Filing Summary: Form 13F-HR

Business Context and Reporting Period

Reporting Manager: Principal Financial Group, Inc.
Period Ended: December 31, 2006
Filing Date: February 09, 2007
Report Type: 13F Combination Report (Holdings Report)
Scope: This filing discloses equity securities held by Principal Financial Group, Inc. and four other affiliated institutional managers: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Life Insurance Co.; and Principal Financial Services, Inc.

Key Financial Metrics

Note: As a Form 13F filing, this document reports portfolio holdings and voting authority rather than the operating financial performance (revenue, profit, cash flow) of the reporting manager itself.

• Total Portfolio Value: $23,194,568,000 (approx. $23.2 billion)
• Total Number of Holdings: 1,914 entries
• Number of Included Managers: 5 (1 primary + 4 affiliated)
• Top 5 Holdings by Value:
  1. General Electric Co: $8,651,263,000
  2. Microsoft Corp: $6,579,190,000
  3. Exxon Mobil Corp: $6,102,646,000
  4. Pfizer Inc: $6,748,260,000
  5. Verizon Communications: $2,803,435,000

Material Changes and Portfolio Composition

The filing provides a snapshot of holdings as of the period end. It does not contain comparative data against the prior quarter to calculate material changes in position size or value. The portfolio is heavily diversified across sectors, with significant allocations to:

• Technology: Microsoft, Intel, Cisco Systems, Oracle, Hewlett-Packard.
• Financials: Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, MetLife.
• Healthcare: Johnson & Johnson, Merck, UnitedHealth Group, Medtronic.
• Energy: Exxon Mobil, Chevron, ConocoPhillips.
• Consumer Staples: Procter & Gamble, Coca-Cola, PepsiCo, Wal-Mart Stores.

Guidance, Outlook, and Risks

Guidance and Outlook: The filing text does not provide management commentary, earnings guidance, or future outlook. Form 13F is a regulatory disclosure of past holdings, not a forward-looking earnings release.

Risks and Contingencies: No specific risk factors or contingencies are disclosed in this document. The filing represents a static list of securities with defined voting authority (Sole, Shared, or None) and does not detail derivative positions or off-balance-sheet items.

Investor Verification Checklist

• Portfolio Concentration: Verify the impact of the top 10 holdings (approx. 30% of total value) on the manager's overall risk profile.
• Affiliated Managers: Confirm that the reported value ($23.2B) aggregates positions across all five listed managers, not just Principal Financial Group, Inc.
• Voting Authority: Note that the vast majority of holdings are reported with "Defined" voting authority, split between Sole and Shared, indicating active engagement or co-management of these positions.
• Missing Data: Acknowledge that this filing does not contain debt levels, liquidity ratios, or operating margins for Principal Financial Group, Inc. itself; those metrics must be sourced from 10-K or 10-Q filings.