SEC Filing Summary: Principal Financial Group Inc. (13F-HR)
Business Context and Reporting Period
This Form 13F-HR is a quarterly holdings report filed by Principal Financial Group, Inc., an institutional investment manager based in Des Moines, Iowa. The report covers the calendar quarter ended June 30, 2003, and was signed on August 14, 2003. The filing aggregates holdings for Principal Financial Group and four other included managers: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Life Insurance Co; and Principal Financial Services, Inc.
Key Financial Metrics
As a Form 13F filing, this document reports equity holdings rather than the company's own operating financials (revenue, profit, cash flow). The following metrics represent the aggregate portfolio managed by the reporting entity:
- Total Portfolio Value: $13,488,742,000 (Reported as $13,488,742 in thousands).
- Total Number of Holdings: 1,974 distinct entries.
- Top Holdings by Value (Selected):
- Microsoft Corp: $8,447,124,000
- General Electric Co: $7,526,765,000
- Cisco Systems, Inc.: $7,688,494,000
- Exxon Mobil Corp: $6,490,278,000
- Johnson & Johnson: $2,828,535,000
- Walmart Stores, Inc.: $3,360,228,000
- Debt and Liquidity: Not applicable. This form reports long-term equity positions and does not disclose the manager's corporate debt or liquidity status.
Material Changes and Portfolio Composition
The filing provides a snapshot of holdings as of June 30, 2003. It does not contain comparative data against the prior quarter (March 31, 2003) to determine material changes in position size or new entries versus deletions. The portfolio is heavily diversified across sectors, with significant exposure to:
- Technology: Large positions in Microsoft, Cisco, Intel, Dell, and Oracle.
- Financials: Significant holdings in Citigroup, Bank of America, JPMorgan Chase, and Wells Fargo.
- Healthcare: Major stakes in Pfizer, Merck, UnitedHealth Group, and Medtronic.
- Energy: Substantial positions in Exxon Mobil, ChevronTexaco, and ConocoPhillips.
Guidance, Outlook, and Risks
Guidance and Outlook: Form 13F filings are historical disclosures of past holdings and do not contain forward-looking guidance, earnings outlooks, or management commentary regarding future strategy.
Risks and Contingencies: The filing does not disclose specific risk factors or contingencies. However, the concentration of assets in large-cap U.S. equities implies exposure to general market volatility. The inclusion of "Defined" voting authority for most holdings indicates the manager exercises voting rights, subject to standard fiduciary risks.
Key Facts for Investor Verification
- Reporting Entity Scope: Verify that the $13.5 billion figure represents the aggregate of five distinct management entities, not just Principal Financial Group Inc. alone.
- Valuation Basis: Confirm that the reported values are based on market prices as of June 30, 2003, and do not reflect subsequent market movements.
- Top Concentrations: The top 10 holdings represent a significant portion of the total portfolio value; verify current exposure to these specific tickers (e.g., Microsoft, GE, Cisco) if analyzing current risk.
- Missing Data: This filing does not provide data on short positions, derivatives, or non-equity assets (bonds, cash, real estate) held by the managers.