Business Context and Reporting Period
Reporting Manager: Principal Financial Group, Inc.
Filing Type: Form 13F-HR (Combination Report)
Reporting Period: Calendar Year Ended December 31, 2010
Submission Date: February 10, 2011
Scope: This report aggregates holdings for Principal Financial Group, Inc. and five other included managers (Principal Global Investors, Principal Real Estate Investors, Principal Life Insurance Co., Principal Financial Services, and Principal Management Corporation).
Key Financial Metrics
Total Portfolio Value: $29,212,131,000 (approx. $29.2 billion)
Total Number of Holdings: 3,952 entries
Asset Class: Primarily U.S. and International Equity Securities (Common Stock, ADRs, Preferred Stock).
Liquidity: The portfolio consists of publicly traded securities, indicating high liquidity relative to private assets.
Debt: Not applicable (Equity holdings report).
Material Changes and Portfolio Composition
Top Holdings by Value (Selected):
- General Electric Co: ~$17.07 billion (Combined entries)
- Microsoft Corp: ~$12.78 billion (Combined entries)
- Wells Fargo & Co: ~$7.17 billion (Combined entries)
- UnitedHealth Group Inc: ~$2.95 billion (Combined entries)
- Johnson & Johnson: ~$3.22 billion (Combined entries)
- Exxon Mobil Corp: ~$6.39 billion (Combined entries)
- Procter & Gamble Co: ~$3.77 billion (Combined entries)
Sector Exposure: The portfolio demonstrates significant diversification across Financials, Healthcare, Technology, Energy, Consumer Staples, and Industrials. Notable concentrations exist in large-cap blue-chip equities.
Guidance, Outlook, and Risks
Management Commentary: Not applicable. Form 13F filings are statutory disclosures of holdings and do not contain forward-looking guidance, earnings outlooks, or management commentary.
Risks: As an equity portfolio, the primary risks include market volatility, sector-specific downturns, and concentration risk in top holdings. The filing does not disclose specific hedging strategies or derivative usage beyond standard equity positions.
Unusual Items: The report includes holdings in various Real Estate Investment Trusts (REITs) and preferred stocks, indicating a strategy that incorporates income-generating assets alongside growth equities.
Investor Verification Checklist
- Concentration Risk: Verify the impact of the top 10 holdings (e.g., GE, Microsoft, Wells Fargo) on the overall portfolio performance.
- Manager Attribution: Confirm which specific sub-manager (e.g., Principal Global Investors vs. Principal Life Insurance) holds specific positions, as the report aggregates five managers.
- Valuation Timing: Note that values are reported as of December 31, 2010; verify current market prices to assess unrealized gains or losses.
- Derivative Exposure: While the table lists "Put" and "Call" columns, the provided data shows "0" for these fields in the sample rows; verify if any off-balance-sheet derivatives exist in the full dataset.
- Regulatory Compliance: Ensure the filing aligns with the 13F-HR requirements for institutional investment managers managing over $100 million in assets.