Business Context and Reporting Period
Company: Principal Financial Group, Inc.
Filing Type: Form 13F-HR (Institutional Investment Manager)
Reporting Period: Quarter ended March 31, 2011
Report Type: 13F Combination Report (Includes holdings for Principal Financial Group and 5 other affiliated managers)
Signatory: Michael Roughton, Vice-President
Key Financial Metrics
Total Portfolio Value: $31,684,303,000 (Approx. $31.68 Billion)
Total Number of Holdings: 3,997 entries
Reporting Managers Included: 6 (Principal Financial Group, Inc. plus 5 affiliated managers including Principal Global Investors, LLC and Principal Life Insurance Co.)
Note: As a Form 13F filing, this document reports equity holdings and does not contain revenue, profit, cash flow, or debt metrics for Principal Financial Group itself.
Material Changes and Portfolio Composition
The filing details a diversified portfolio of U.S. and foreign equity securities. The report aggregates holdings across multiple internal and affiliated investment managers. Key observations include:
- Top Holdings by Value: Significant positions in major financial and industrial sectors, including Citigroup Inc. (~$27.6B shares), Microsoft Corp. (~$9.9B shares), and General Electric Co. (~$14.6B shares).
- Concentration: The portfolio is heavily weighted toward large-cap U.S. equities, with substantial exposure to the Financials, Technology, and Healthcare sectors.
- Voting Authority: The vast majority of holdings are reported with "Sole" or "Shared" voting authority, indicating active management of these positions.
Notable Holdings (Selected Examples)
| Issuer | Shares Held (Total) | Value (Approx. $000s) |
|---|---|---|
| Citigroup Inc. | 27,666,639 | 27,666,639 |
| Microsoft Corp. | 9,913,315 | 9,913,315 |
| General Electric Co. | 14,689,382 | 14,689,382 |
| Wells Fargo & Co. | 5,681,530 | 5,681,530 |
| Bank of America Corp. | 9,901,907 | 9,901,907 |
Guidance, Outlook, and Risks
Guidance/Outlook: This filing is a regulatory disclosure of past holdings and does not contain forward-looking guidance, earnings outlook, or management commentary regarding future strategy.
Risks/Contingencies: The filing does not disclose specific risk factors or contingencies. However, the concentration in financial sector equities (e.g., Citigroup, Bank of America, Wells Fargo) implies exposure to systemic financial market risks prevalent in the 2011 period.
Important Facts for Investors to Verify
- Aggregated Data: The reported values and share counts represent the aggregate holdings of Principal Financial Group and five other affiliated managers. Investors should verify if specific sub-managers (e.g., Principal Global Investors) have distinct strategies.
- Valuation Method: The values listed are based on the market price at the end of the reporting period (March 31, 2011) and do not reflect current market values.
- Exclusions: Form 13F only reports long positions in equity securities. It does not disclose short positions, derivatives, fixed income holdings, or cash positions.
- Historical Context: The data reflects the portfolio composition as of Q1 2011, a period shortly following the 2008 financial crisis, characterized by significant exposure to recovering financial institutions.