SEC Filing Summary: Form 13F-HR
Business Context and Reporting Period
Reporting Manager: Principal Financial Group, Inc.
Reporting Period: Quarter ended June 30, 2007
Filing Date: August 10, 2007
Report Type: 13F Combination Report (includes holdings for Principal Financial Group and four other affiliated managers).
Scope: This filing discloses long-only equity securities held by the reporting manager and its affiliates, including Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Life Insurance Co.; and Principal Financial Services, Inv.
Key Financial Metrics
Total Portfolio Value: $28,018,322,000 (approx. $28.02 billion)
Total Number of Holdings: 1,946 distinct entries
Asset Class: Common stocks, preferred stocks, and American Depositary Receipts (ADRs).
Voting Authority: The vast majority of holdings are reported with "Sole" voting authority, indicating direct control over voting decisions for these positions.
Material Changes and Portfolio Composition
Note: As this is a quarterly snapshot, specific period-over-period changes (e.g., net buys/sells) cannot be calculated without the prior quarter's filing. The following reflects the composition of the portfolio as of June 30, 2007.
The portfolio is heavily diversified across sectors, with significant concentration in the following areas:
- Financials: Major positions in Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, and MetLife.
- Technology: Significant holdings in Microsoft, Intel, Cisco Systems, Oracle, and Hewlett-Packard.
- Healthcare: Large allocations to Pfizer, Johnson & Johnson, Merck, and UnitedHealth Group.
- Energy: Substantial exposure to Exxon Mobil, Chevron, and ConocoPhillips.
- Consumer Staples: Notable positions in Procter & Gamble, Coca-Cola, and PepsiCo.
Top 5 Holdings by Value (Approximate based on share count and market context):
- General Electric Co. (11,426,234 shares)
- Microsoft Corp. (8,476,487 shares)
- Exxon Mobil Corp. (6,711,860 shares)
- AT&T Inc. (7,987,391 shares)
- Verizon Communications (2,921,906 shares)
Guidance, Outlook, and Risks
Management Commentary: Form 13F filings are statutory disclosures of holdings and do not contain management commentary, earnings guidance, or forward-looking outlooks regarding the reporting manager's own financial performance or strategy.
Risks and Contingencies:
- Market Risk: The portfolio is exposed to broad equity market volatility.
- Concentration Risk: While diversified, the top holdings represent a significant portion of the total asset value.
- Regulatory Risk: As an institutional investment manager, Principal Financial Group is subject to ongoing SEC reporting requirements and fiduciary standards.
Key Facts for Investor Verification
- Affiliated Managers: Verify that the reported value ($28.02 billion) aggregates holdings from five distinct managers (Principal Financial Group plus four affiliates).
- Valuation Date: All share counts and values reflect the status as of the close of business on June 30, 2007.
- Exclusions: This report does not include short positions, derivatives (options/futures), or non-equity securities (bonds/cash), which may be held by the firm but are not reported on Form 13F.
- Voting Control: Confirm that "Sole" voting authority applies to the majority of positions, distinguishing them from "Shared" or "None" authority which might indicate different investment vehicles.