Business Context and Reporting Period
Company: Principal Financial Group, Inc.
Filing Type: Form 13F-HR (Institutional Investment Manager)
Reporting Period: Quarter ended September 30, 2010
Signatory: Michael Roughton, Vice-President
Scope: This is a combination report filed on behalf of Principal Financial Group, Inc. and five other affiliated 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: $27,393,012,000 (approx. $27.4 billion)
Total Number of Holdings: 4,010 entries
Asset Class: Primarily U.S. and International Equity Securities (Common Stock, ADRs, Preferred Stock).
Top Holdings by Value (Selected):
- General Electric Co: ~$16.4 billion (16,446,003 shares)
- Microsoft Corp: ~$11.5 billion (11,466,640 shares)
- Wells Fargo & Co: ~$8.0 billion (7,986,580 shares)
- Verizon Communications Inc: ~$3.5 billion (3,527,177 shares)
- UnitedHealth Group Inc: ~$3.0 billion (3,034,317 shares)
- Bank of America Corp: ~$12.0 billion (11,952,541 shares)
- Citigroup Inc: ~$23.8 billion (23,804,960 shares)
- Oracle Corp: ~$5.4 billion (5,351,014 shares)
- Exxon Mobil Corp: ~$5.7 billion (5,742,751 shares)
- Procter & Gamble Co: ~$3.3 billion (3,323,791 shares)
Material Changes and Portfolio Composition
Comparison to Prior Period: The filing text provided does not contain data for the prior quarter (June 30, 2010); therefore, specific material changes in share counts or values cannot be calculated from this document alone.
Portfolio Characteristics:
- Diversification: The portfolio is highly diversified across sectors, with significant exposure to Financials, Technology, Healthcare, Energy, and Consumer Staples.
- Voting Authority: The vast majority of holdings are reported with "Sole" voting authority, indicating direct control over voting decisions for these positions.
- Discretionary Management: All reported investments are listed as "Defined" discretionary authority.
- Notable Sectors: Heavy concentration in large-cap U.S. equities, including major banks (Bank of America, Citigroup, Wells Fargo, JPMorgan Chase) and industrial conglomerates (General Electric).
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: No specific risk factors or contingencies are disclosed in this filing. The filing represents a snapshot of equity positions at the end of the quarter and does not detail derivatives, short positions, or non-equity assets.
Important Facts for Investor Verification
- Aggregated Reporting: The reported value ($27.4B) represents the aggregate holdings of six distinct management entities under the Principal Financial Group umbrella, not just the parent company.
- Concentration Risk: The top 10 holdings represent a significant portion of the total portfolio value, indicating a concentration in large-cap blue-chip stocks.
- Financial Sector Exposure: The portfolio holds massive positions in major U.S. banks (Citigroup, Bank of America, Wells Fargo, JPMorgan Chase), reflecting significant exposure to the financial sector's performance as of Q3 2010.
- Reporting Lag: This data reflects positions as of September 30, 2010, and was filed on November 10, 2010. It does not reflect current market positions.
- Exclusions: This report does not include fixed income, real estate (unless REITs), cash, or derivatives, which may constitute a significant portion of the firm's total assets under management.