SEC Filing Summary: Form 13F-HR
Business Context and Reporting Period
Reporting Manager: Principal Financial Group, Inc.
Reporting Period: Quarter ended June 30, 2010
Filing Date: August 11, 2010
Report Type: 13F Combination Report (includes holdings for Principal Financial Group and 5 other affiliated managers).
Scope: This filing discloses equity securities held by the reporting manager and its affiliates, including Principal Global Investors, Principal Real Estate Investors, Principal Life Insurance Co., Principal Financial Services, and Principal Management Corporation.
Key Financial Metrics
Total Portfolio Value: $23,819,894,000 (approx. $23.82 billion)
Total Number of Holdings: 3,976 distinct entries (representing various classes and managers).
Top Holdings by Value (Estimated based on share count and market context):
- General Electric Co: ~17.77 million shares
- Microsoft Corp: ~12.33 million shares
- Wells Fargo & Co: ~7.7 million shares
- AT&T Inc: ~9.35 million shares
- Bank of America Corp: ~14.5 million shares
- Citigroup Inc: ~34.5 million shares
- Exxon Mobil Corp: ~5.42 million shares
- Wal-Mart Stores Inc: ~3.39 million shares
- UnitedHealth Group Inc: ~3.35 million shares
- Procter & Gamble Co: ~3.94 million shares
Note: Exact dollar values for individual holdings are not provided in the text; rankings are based on share volume and typical market capitalization for the period.
Material Changes and Portfolio Composition
Asset Class Focus: The portfolio is heavily concentrated in large-cap U.S. equities across diverse sectors including Financials, Technology, Healthcare, Energy, and Consumer Staples.
Notable Sector Exposure:
- Financials: Significant positions in major banks (Bank of America, Citigroup, Wells Fargo, JPMorgan Chase) and insurance companies (MetLife, Prudential, AIG).
- Technology: Large holdings in Microsoft, Intel, Cisco Systems, Oracle, and Apple.
- Healthcare: Substantial exposure to Pfizer, UnitedHealth Group, Johnson & Johnson, and Merck.
- Energy: Major positions in Exxon Mobil, Chevron, ConocoPhillips, and Marathon Oil.
Unusual Items: The filing includes holdings in Real Estate Investment Trusts (REITs) such as Simon Property Group, Ventas, and Host Hotels & Resorts, indicating a diversified approach to real estate exposure. There are also significant holdings in international ADRs (e.g., Petrobras, Vale, HSBC).
Guidance, Outlook, and Risks
Management Commentary: Form 13F filings are statutory disclosures of holdings and do not contain management commentary, forward-looking guidance, or strategic outlooks.
Risks and Contingencies: As a passive disclosure of holdings, this document does not detail specific risks or contingencies. However, the concentration in financial sector stocks reflects the market environment of mid-2010, post-financial crisis, suggesting a strategy of value investing in distressed or recovering financial institutions.
Key Facts for Investor Verification
- Portfolio Size: Verify the total reported value of approximately $23.82 billion against the firm's total assets under management (AUM) to understand the scope of this specific report.
- Affiliated Managers: Confirm that the holdings include positions managed by five other affiliated entities (e.g., Principal Life Insurance Co.), which may have different investment mandates than the primary manager.
- Top Concentrations: Investigate the specific rationale behind the massive positions in financial stocks (Citigroup, Bank of America) and technology giants (Microsoft, Intel) relative to the firm's stated investment philosophy.
- REIT Exposure: Review the significant holdings in REITs (Simon Property Group, Ventas) to assess the firm's view on the commercial real estate market recovery in 2010.
- International Exposure: Verify the extent of international exposure through ADRs, particularly in emerging markets (Brazil, India) and developed markets (UK, Europe).