SEC Filing Summary: Principal Financial Group Inc. (Form 13F-HR)
Business Context and Reporting Period
Reporting Manager: Principal Financial Group, Inc.
Reporting Period: Calendar Year Ended December 31, 2001
Filing Date: February 14, 2002
Scope: This filing represents a 13F Holdings Report disclosing equity securities held by Principal Financial Group and two other included managers (Invista Capital Management, LLC and BT Financial Group Limited). The report covers 1,661 distinct security positions.
Key Financial Metrics
Total Portfolio Value: $17,521,239,000 (Reported as $17,521,239 in thousands)
Total Number of Positions: 1,661
Top Holdings by Value (Selected):
- General Electric Co.: 10,828,012 shares (Sole Voting: 10,671,163)
- Johnson & Johnson: 4,542,642 shares (Sole Voting: 4,465,903)
- Microsoft Corp.: 4,607,649 shares (Sole Voting: 4,545,047)
- Wal-Mart Stores, Inc.: 3,942,774 shares (Sole Voting: 3,916,331)
- Verizon Communications: 3,433,839 shares (Sole Voting: 3,400,662)
- Exxon Mobil Corp.: 6,531,097 shares (Sole Voting: 6,422,519)
- Pfizer, Inc.: 9,038,421 shares (Sole Voting: 8,840,985)
- Procter & Gamble Co.: 1,865,831 shares (Sole Voting: 1,846,711)
- Philip Morris Cos., Inc.: 2,803,558 shares (Sole Voting: 2,764,818)
- WorldCom: 3,269,687 shares (Sole Voting: 3,161,774)
Note: The filing lists share counts and voting authority but does not provide the specific market value per share or total value for individual positions, only the aggregate portfolio value.
Material Changes and Portfolio Composition
Portfolio Composition: The portfolio is heavily diversified across sectors, with significant exposure to Technology (Microsoft, Cisco, Intel, Dell), Healthcare (Pfizer, J&J, Merck), Financials (Citigroup, Bank of America, Wells Fargo), and Energy (Exxon Mobil, ChevronTexaco).
Notable Holdings: The manager holds substantial positions in large-cap blue-chip equities. Significant holdings also include telecommunications giants such as SBC Communications, AT&T, and WorldCom.
Voting Authority: For the vast majority of positions, Principal Financial Group holds "Sole" voting authority, indicating direct control over voting decisions for these securities.
Guidance, Outlook, and Risks
Guidance and Outlook: As a Form 13F-HR, this document is a regulatory disclosure of past holdings and does not contain forward-looking guidance, earnings forecasts, or management commentary regarding future strategy.
Risks and Contingencies: The filing does not disclose specific risk factors or contingencies. However, the concentration in large-cap technology and telecommunications stocks (e.g., WorldCom, Cisco, Lucent) reflects the market environment of late 2001, a period characterized by significant volatility in these sectors.
Unusual Items: The filing includes holdings in various ADRs (American Depositary Receipts) and international entities, indicating a global investment scope. The inclusion of "Other Included Managers" suggests a consolidated reporting structure for affiliated investment entities.
Key Facts for Investor Verification
- Aggregate Value: Verify the total reported value of $17.52 billion against the sum of individual position values if available in external databases, as the filing only provides the total.
- Top Concentrations: Confirm the specific dollar value of the top 10 holdings (e.g., GE, J&J, Microsoft) to assess concentration risk relative to the total portfolio.
- WorldCom Exposure: Note the significant holding in WorldCom (3.27 million shares), which was a major risk factor given the company's subsequent bankruptcy and accounting scandal in 2002.
- Reporting Scope: Ensure analysis accounts for the fact that this report includes holdings for Principal Financial Group plus two other managers (Invista Capital Management and BT Financial Group).
- Share Counts vs. Value: Be aware that the filing provides share counts but not per-share prices; valuation requires external price data for the period ending December 31, 2001.