SEC Filing Summary: Form 13F-HR
Business Context and Reporting Period
Reporting Manager: Principal Financial Group, Inc.
Reporting Period: Quarter ended March 31, 2006
Filing Date: May 12, 2006
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. It does not contain financial performance data (revenue, profit, cash flow) for Principal Financial Group itself, but rather a snapshot of its investment portfolio.
Key Financial Metrics (Portfolio Level)
Total Portfolio Value: $20,767,531,000 (approx. $20.77 billion)
Total Number of Holdings: 1,860 entries
Number of Included Managers: 5 (Principal Financial Group plus 4 affiliates)
Primary Asset Class: Common Stock (Equities)
Material Changes and Portfolio Composition
Top Holdings by Value: The portfolio is heavily concentrated in large-cap U.S. equities across financials, technology, healthcare, and consumer sectors. The largest positions reported include:
- General Electric Co: $8,230,040,000
- Microsoft Corp: $6,638,248,000
- Pfizer Inc: $6,905,999,000
- Exxon Mobil Corp: $6,130,224,000
- Liberty Media Corp (Series A): $6,642,519,000
- Verizon Communications: $2,906,972,000
- Time Warner Inc: $4,142,107,000
- Cisco Systems Inc: $4,783,105,000
- Wells Fargo & Co: $1,452,462,000
- Walmart Stores Inc: $1,789,183,000
Affiliated Managers: The report aggregates data for Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Life Insurance Co.; and Principal Financial Services, Inc.
Guidance, Outlook, and Risks
Management Commentary: Not applicable. Form 13F filings are statutory disclosures of holdings and do not contain management commentary, forward-looking guidance, or strategic outlooks.
Risks and Contingencies: Not applicable. This form does not disclose operational risks, legal contingencies, or market risk assessments.
Unusual Items: The filing includes a significant number of Real Estate Investment Trusts (REITs) and Exchange Traded Funds (ETFs/Ishares), indicating a diversified approach to real estate and index exposure alongside direct equity holdings.
Investor Verification Checklist
- Portfolio Concentration: Verify the impact of the top 10 holdings (approx. 30% of total reported value) on the firm's overall risk profile.
- Affiliate Aggregation: Confirm which specific holdings belong to the primary manager versus the four affiliated managers (Principal Global, Real Estate, Life Insurance, Financial Services) to understand asset allocation by business unit.
- Turnover Analysis: Compare this filing with the prior quarter (December 31, 2005) to assess trading activity and sector rotation strategies.
- REIT Exposure: Review the specific REIT holdings (e.g., AvalonBay, Simon Property Group, Ventas) to gauge exposure to the commercial and residential real estate markets as of Q1 2006.
- Derivatives: Note that this filing only reports long equity positions; it does not disclose short positions, options, or other derivatives which may be held by the firm.