Business Context and Reporting Period
Company: Principal Financial Group, Inc.
Filing Type: Form 13F-HR (Institutional Investment Manager Holdings Report)
Reporting Period: Quarter ended March 31, 2013
Report Type: 13F Combination Report (Includes holdings for Principal Financial Group and 5 other affiliated managers)
Signatory: Michael Roughton, Vice President
Key Financial Metrics
Total Portfolio Value: $42,899,514,000 (Approx. $42.9 billion)
Total Number of Holdings: 3,639 entries
Asset Class: Primarily U.S. Equity Securities (Common Stock)
Top Sector Exposure: Financials, Healthcare, Technology, Consumer Staples, and Energy.
Top 10 Holdings by Value (Estimated based on share count and market context)
| Issuer | Shares Held (Total) | Primary Manager Codes |
|---|---|---|
| General Electric Co | 13,994,740 | 1,3,4 |
| Wells Fargo & Co | 9,753,704 | 1,3,4 |
| Microsoft Corp | 9,918,780 | 1,3,4 |
| Verizon Communications Inc | 4,229,556 | 1,3,4 |
| AT&T Inc | 8,565,628 | 1,3,4 |
| Johnson & Johnson | 3,194,809 | 1,3,4 |
| Procter & Gamble Co | 3,224,970 | 1,3,4 |
| Exxon Mobil Corp | 6,634,196 | 1,3,4 |
| UnitedHealth Group Inc | 2,492,131 | 1,3,4 |
| Wal-Mart Stores Inc | 3,715,450 | 1,3,4 |
Material Changes and Portfolio Composition
Manager Structure: The report aggregates holdings for Principal Financial Group, Inc. and five other affiliated managers: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Life Insurance Co.; Principal Financial Services, Inc.; and Principal Management Corporation.
Voting Authority: The vast majority of holdings are reported with "Sole" voting authority. A small number of positions (e.g., Apartment Investment & Management Co., General Growth Properties, Host Hotels & Resorts) show "Shared" voting authority, indicating co-investment or specific fund structures.
Derivatives: The filing lists "Put" and "Call" columns, but all reported values in the provided text for these columns are "0", indicating no reported short positions or options activity in this specific summary view.
Guidance, Outlook, and Risks
Guidance: Form 13F filings are historical disclosures of holdings and do not contain forward-looking guidance, earnings outlooks, or management commentary regarding future performance.
Risks: The portfolio demonstrates significant concentration in large-cap U.S. equities. Key risks inherent to this portfolio composition include market volatility, interest rate sensitivity (particularly for the Financial and Real Estate sectors), and regulatory changes affecting the insurance and banking industries.
Important Facts for Investor Verification
- Aggregated Data: The $42.9 billion figure represents the combined assets of six distinct management entities under the Principal umbrella, not just the parent company's direct proprietary account.
- Reporting Lag: This data reflects positions as of March 31, 2013. Actual positions may have changed significantly prior to the filing date of April 23, 2013.
- Passive vs. Active: The sheer number of holdings (3,639) suggests a mix of active management and potentially passive/index-tracking strategies across the different affiliated managers.
- Top Concentrations: The portfolio is heavily weighted toward "Blue Chip" dividend-paying stocks in the Financial, Healthcare, and Consumer Staples sectors.