SEC Filing Summary: Form 13F-HR
Business Context and Reporting Period
Reporting Manager: Principal Financial Group, Inc.
Report Type: 13F Combination Report (includes holdings for Principal Financial Group and four other affiliated managers).
Reporting Period: Calendar Year Ended December 31, 2008.
Filing Date: February 10, 2009.
Location: Des Moines, Iowa.
Key Financial Metrics
Total Portfolio Value: $16,700,768,000 (approx. $16.7 billion).
Total Number of Holdings: 2,155 entries.
Asset Class: Primarily U.S. and International Equity securities (Common Stock, ADRs, Preferred Stock).
Voting Authority: The vast majority of holdings are reported with "Sole" voting authority. A small subset of holdings (e.g., REITs) report "Shared" voting authority or "None" for specific tranches.
Material Changes and Portfolio Composition
Top Holdings by Value (Selected):
- General Electric Co: 11,715,706 shares.
- Microsoft Corp: 6,910,277 shares.
- Exxon Mobil Corp: 6,115,384 shares.
- AT&T Inc: 6,498,916 shares.
- Johnson & Johnson: 3,457,368 shares.
- Wells Fargo & Co: 5,225,197 shares.
- Bank of America Corp: 5,202,968 shares.
- Verizon Communications Inc: 2,849,839 shares.
- Procter & Gamble Co: 3,254,702 shares.
- Time Warner Inc: 2,948,081 shares.
Sector Exposure: The portfolio demonstrates significant diversification across Financials, Technology, Healthcare, Energy, Consumer Staples, and Real Estate (REITs). Notable concentrations exist in large-cap blue-chip equities.
Guidance, Outlook, and Risks
Management Commentary: This filing is a statutory disclosure of equity holdings and does not contain management commentary, forward-looking guidance, or strategic outlook.
Risks and Contingencies: The filing does not disclose specific risk factors or contingencies. However, the portfolio composition reflects exposure to the broader equity market conditions as of December 31, 2008, a period characterized by significant financial market volatility.
Unusual Items: The report includes holdings in various Real Estate Investment Trusts (REITs) and Preferred Stocks, indicating a strategy that includes income-generating assets alongside growth equities.
Investor Verification Checklist
- Valuation Accuracy: Verify the total portfolio value of $16.7 billion against the sum of individual security values to ensure no aggregation errors.
- Affiliated Managers: Confirm the specific contribution of the four included managers (Principal Global Investors, Principal Real Estate Investors, Principal Life Insurance Co., Principal Financial Services) to the total value.
- Concentration Risk: Assess the impact of the top 10 holdings (e.g., GE, Microsoft, Exxon) on the overall portfolio performance.
- REIT Exposure: Review the specific voting authority status for Real Estate holdings, as some entries show "Shared" or "None" authority, which may indicate different fund structures.
- Market Context: Consider the valuation of these holdings in the context of the Q4 2008 market environment.