PFG

SEC Filing Summary: Form 13F-HR

Business Context and Reporting Period

Reporting Manager: Principal Financial Group, Inc.
Reporting Period: Calendar Year Ended December 31, 2005
Filing Date: February 13, 2006
Report Type: 13F Combination Report (includes holdings for Principal Financial Group and four other affiliated managers).
Scope: This filing discloses equity securities held by the reporting manager and its affiliates, including 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 does not contain the reporting company's internal financial statements (revenue, profit, cash flow, or debt).

• Total Portfolio Value: $19,094,002,000 (approx. $19.1 billion).
• Total Number of Holdings: 1,850 distinct entries.
• Asset Class: Primarily U.S. common stocks and equity interests.
• Largest Single Position (by Value): General Electric Co. ($7,959,999,000).
• Top 5 Holdings by Value:
  1. General Electric Co. ($7.96B)
  2. Microsoft Corp. ($6.56B)
  3. Exxon Mobil Corp. ($5.89B)
  4. Verizon Communications ($2.93B)
  5. Wachovia Corp. ($1.65B)

Material Changes and Portfolio Composition

Comparison to Prior Period: The filing text provided does not contain data for the prior quarter (September 30, 2005); therefore, specific material changes in position size or new/removed holdings cannot be calculated from this document alone.

Portfolio Characteristics:

• Concentration: The portfolio is heavily weighted toward large-cap U.S. equities. The top 10 holdings represent a significant portion of the total reported value.
• Sector Exposure: Significant exposure to Financials (e.g., Citigroup, Bank of America, Wells Fargo), Technology (e.g., Microsoft, Intel, Cisco), Healthcare (e.g., Pfizer, Johnson & Johnson), and Energy (e.g., Exxon Mobil, Chevron).
• Voting Authority: The manager reports "Sole" voting authority for the vast majority of positions, with no "Shared" or "None" voting authority reported in the summary table.

Guidance, Outlook, and Risks

Management Commentary: Form 13F filings are statutory disclosures of holdings and do not contain management commentary, earnings guidance, or forward-looking outlooks.

Risks and Contingencies:

• Market Risk: The portfolio is subject to general equity market volatility.
• Concentration Risk: Significant exposure to specific sectors (Financials, Technology) and individual issuers (e.g., General Electric, Microsoft).
• Regulatory Compliance: The filing represents a snapshot of holdings as of the period end; actual positions may have changed subsequent to December 31, 2005.

Investor Verification Checklist

• Verify the total portfolio value of ~$19.1 billion against the firm's total assets under management (AUM) to understand the scope of this specific report.
• Confirm the specific allocation of the $19.1 billion among the five reporting managers (Principal Financial Group and the four affiliates) to assess concentration within the group.
• Compare the top 10 holdings listed here with the firm's 10-K or 10-Q filings to distinguish between proprietary trading/investment accounts and client-managed assets.
• Review the "Other Included Managers" list to ensure all relevant affiliates are accounted for in the aggregate exposure analysis.
• Note that this filing does not disclose derivatives, short positions, or non-equity securities (bonds, cash), which may represent a portion of the firm's total risk profile.