Business Context and Reporting Period
Company: Principal Financial Group Inc.
Filing Type: Form 13F-HR (Institutional Investment Manager)
Reporting Period: Quarter ended March 31, 2010
Report Type: 13F Combination Report (Includes holdings for Principal Financial Group and 5 other affiliated managers)
Signatory: Michael Roughton, Vice-President
Key Financial Metrics
Note: Form 13F filings report equity holdings and do not disclose the reporting company's own revenue, profit, cash flow, or debt.
- Total Portfolio Value: $27,750,231,000 (Approx. $27.75 Billion)
- Total Number of Holdings: 4,026 entries
- Number of Included Managers: 6 (Principal Financial Group + 5 affiliates)
- Top Sector Exposure: Financials, Technology, Healthcare, and Energy (based on issuer list analysis).
Material Changes and Portfolio Composition
The filing details a diversified portfolio of U.S. and foreign equity securities. While specific period-over-period changes (buys/sells) are not explicitly calculated in the text, the snapshot reveals significant concentration in the following areas:
- Financial Services: Massive positions in major banks and insurers, including Wells Fargo & Co (7.2M shares), Bank of America Corp (13.5M shares), JPMorgan Chase & Co (4.9M shares), and MetLife Inc (678K shares).
- Technology: Significant holdings in Microsoft Corp (9.7M shares), Intel Corp (8.0M shares), Oracle Corp (5.5M shares), and Cisco Systems Inc (7.7M shares).
- Healthcare: Large stakes in UnitedHealth Group Inc (2.9M shares), Pfizer Inc (10.8M shares), and Johnson & Johnson (2.8M shares).
- Energy: Notable positions in Exxon Mobil Corp (6.6M shares), ConocoPhillips (1.9M shares), and Occidental Petroleum (1.5M shares).
Notable Voting Authority Discrepancies
Several holdings show a difference between shares held and shares with sole voting authority, indicating shared or discretionary voting rights with other managers:
- Simon Property Group Inc: 3.1M shares held vs. 3.0M shares with sole voting authority.
- Public Storage: 1.5M shares held vs. 1.47M shares with sole voting authority.
- Host Hotels & Resorts Inc: 3.6M shares held vs. 3.58M shares with sole voting authority.
Guidance, Outlook, and Risks
Guidance/Outlook: This filing is a regulatory disclosure of past holdings and does not contain management commentary, forward-looking guidance, or strategic outlook.
Risks and Contingencies:
- Concentration Risk: The portfolio holds significant positions in the financial sector, which was under stress during the 2010 reporting period.
- Liquidity: The portfolio consists of publicly traded equities, generally implying high liquidity, though some smaller cap positions may have lower trading volumes.
- Market Risk: As a passive equity filing, the portfolio is fully exposed to general market volatility.
Important Facts for Investor Verification
- Scope of Report: Verify that the $27.75B value represents the aggregate of Principal Financial Group and its 5 affiliated managers (including Principal Global Investors, Principal Real Estate Investors, and Principal Life Insurance Co.), not just the parent company.
- Valuation Date: All share counts and values are as of March 31, 2010. Market values have likely changed significantly since then.
- Exclusions: This report excludes non-equity assets (bonds, real estate, derivatives) and cash positions, which are likely substantial for an insurance and financial services group.
- Voting Rights: Investors should note that for many large holdings, Principal does not have sole voting authority, suggesting co-investment or managed accounts where voting rights are shared.