PFG

SEC Filing Summary: Principal Financial Group Inc. (13F-HR)

Business Context and Reporting Period

Reporting Manager: Principal Financial Group, Inc.
Filing Type: Form 13F-HR (Holdings Report)
Reporting Period: Quarter ended September 30, 2003
Submission Date: November 14, 2003
Scope: This report discloses equity holdings for Principal Financial Group and four included managers: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Life Insurance Co; and Principal Financial Services, Inc.

Key Financial Metrics

Note: Form 13F filings disclose portfolio holdings and do not report the filing entity's own revenue, profit, or cash flow.

• Total Portfolio Value: $14,581,271,000 (Reported as $14,581,271 in thousands).
• Total Number of Holdings: 1,979 distinct entries.
• Top 5 Holdings by Value:
  1. Microsoft Corp: $8,699,633,000
  2. General Electric Co: $7,614,031,000
  3. Cisco Systems, Inc.: $7,433,015,000
  4. Exxon Mobil Corp: $6,419,816,000
  5. Pfizer, Inc.: $6,720,483,000
• Significant Non-Standard Entry: "Separate Account LI - MM" valued at $19,196,865,000 (Note: This value exceeds the reported total portfolio value, suggesting a specific accounting treatment for separate accounts not fully reconciled in the summary total).

Material Changes and Portfolio Composition

The filing provides a snapshot of holdings as of September 30, 2003. As a quarterly snapshot, it does not explicitly detail changes from the prior period (June 30, 2003) within the text provided. However, the portfolio demonstrates heavy concentration in:

• Technology: Significant positions in Microsoft, Cisco, Intel, Dell, and Oracle.
• Financials: Large holdings in Citigroup, Bank of America, JPMorgan Chase, and Wells Fargo.
• Healthcare: Major positions in Pfizer, Johnson & Johnson, and UnitedHealth Group.
• Energy: Substantial exposure to Exxon Mobil, ChevronTexaco, and ConocoPhillips.

Guidance, Outlook, and Risks

Management Commentary: Not applicable. Form 13F is a regulatory disclosure of holdings and does not contain management discussion, guidance, or outlook.

Risks and Contingencies: The filing does not disclose specific risk factors or contingencies. The portfolio composition indicates exposure to market volatility in the technology and energy sectors, which were significant themes in the 2003 market environment.

Investor Verification Checklist

• Verify the reconciliation of the "Separate Account LI - MM" entry ($19.2B) against the reported total portfolio value ($14.6B) to understand the scope of assets under management versus reportable holdings.
• Confirm the specific voting authority (Sole, Shared, None) for the top 10 holdings to assess the firm's active engagement level.
• Compare these holdings against the Q2 2003 13F filing to identify specific buy/sell activity in the technology and financial sectors.
• Review the "Other Included Managers" list to ensure the total value reflects the aggregate of all four subsidiary managers listed.