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 Holdings Report
Reporting Period: Calendar Year Ended December 31, 2002
Submission Date: February 14, 2003 (Signed)
Scope: This report discloses equity holdings managed by Principal Financial Group and four other included managers (Principal Global Investors, Principal Real Estate Investors, Principal Life Insurance Co, and Principal Financial Services, Inc.).

Key Financial Metrics

Total Portfolio Value: $11,646,497,000 (Reported as $11,646,497 in thousands)
Total Number of Holdings: 2,021 entries
Top 5 Holdings by Value:

1. Exxon Mobil Corp: $6,126,444,000 (214,054,000 shares)
2. General Electric Co: $6,941,546,000 (169,027,000 shares)
3. Microsoft Corp: $3,966,009,000 (205,052,000 shares)
4. Johnson & Johnson: $2,845,924,000 (152,854,000 shares)
5. Walmart Stores Inc: $2,987,589,000 (150,903,000 shares)

Note: The filing lists individual security positions but does not provide aggregate revenue, profit, cash flow, or debt metrics for Principal Financial Group itself, as Form 13F is strictly a disclosure of investment holdings.

Material Changes and Portfolio Composition

Asset Allocation: The portfolio is heavily weighted toward large-cap U.S. equities across diverse sectors including Technology, Energy, Healthcare, and Financials.
Notable Sector Exposure:

• Technology: Significant positions in Cisco Systems ($7.39B), Intel ($4.26B), and Hewlett-Packard ($3.18B).
• Energy: Major holdings in Exxon Mobil ($6.13B), ChevronTexaco ($682M), and ConocoPhillips ($556M).
• Financials: Large stakes in Citigroup ($3.91B), Bank of America ($1.54B), and JPMorgan Chase ($1.08B).
• Healthcare: Substantial investments in Pfizer ($5.40B), Merck ($1.21B), and UnitedHealth Group ($385M).

Comparison to Prior Period: The filing text provided does not contain data for the prior comparable period (September 30, 2002); therefore, material changes in holdings cannot be calculated from this document alone.

Guidance, Outlook, and Risks

Management Commentary: Form 13F filings do not contain management commentary, forward-looking guidance, or strategic outlooks.
Risks and Contingencies: No specific risk factors or contingencies are disclosed in this form. The filing represents a snapshot of holdings at period-end and does not address market risks, liquidity constraints, or operational contingencies facing the manager.

Investor Verification Checklist

• Valuation Accuracy: Verify the reported market values against closing prices on December 31, 2002, to ensure the $11.6B total is accurate.
• Concentration Risk: Assess the impact of the top 10 holdings (which appear to represent a significant portion of the total AUM) on portfolio volatility.
• Manager Attribution: Confirm which of the five included managers (Principal Financial Group, Global Investors, Real Estate Investors, Life Insurance Co, Financial Services) holds specific positions, as the "Defined" authority column indicates shared management.
• Regulatory Compliance: Ensure the filing was submitted within the required 45-day window following the quarter-end (due mid-February 2003).
• Missing Data: Note that this filing does not disclose short positions, derivatives, or non-equity assets (bonds, cash), which may represent a significant portion of the firm's total assets.