SEC Filing Summary: Form 13F-HR
Business Context and Reporting Period
Reporting Manager: Principal Financial Group, Inc.
Reporting Period: Quarter ended June 30, 2006
Filing Date: August 11, 2006
Report Type: 13F Combination Report (includes holdings for Principal Financial Group and four other affiliated managers).
Scope: This filing discloses 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, Inc.
Key Financial Metrics
Total Portfolio Value: $20,406,678,000 (approx. $20.4 billion)
Total Number of Holdings: 1,876 entries
Asset Class: Primarily U.S. and International Common Stocks (Equities).
Derivatives: The filing lists "Put" and "Call" columns, but all reported values for these positions are zero. The portfolio consists entirely of long equity positions.
Material Changes and Portfolio Composition
Top Holdings by Value: The portfolio is heavily concentrated in large-cap U.S. equities across financial, technology, healthcare, and consumer sectors. The largest positions reported include:
- General Electric Co: $7,961,312,000
- Microsoft Corp: $6,496,431,000
- Exxon Mobil Corp: $6,104,751,000
- Pfizer Inc: $6,892,401,000
- Verizon Communications: $2,735,341,000
- Time Warner Inc: $3,942,293,000
- Cisco Systems Inc: $4,793,460,000
- Bank of America Corp: $4,698,014,000
- Citigroup Inc: $4,834,361,000
- Johnson & Johnson: $2,108,900,000
Comparison to Prior Period: As this is a standalone text extract of the current filing, quantitative comparisons to the prior quarter (March 31, 2006) regarding net purchases or sales cannot be calculated. However, the sheer volume of holdings (1,876) indicates a highly diversified institutional portfolio.
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.
Risks and Contingencies: The filing does not disclose specific risk factors or contingencies. The primary risk inherent in this portfolio is market risk associated with broad equity exposure. The "Defined" voting authority column indicates that the managers exercise voting rights on these securities, subject to the discretion of the specific sub-managers listed (1, 2, 3, or 4).
Key Facts for Investor Verification
- Affiliated Managers: Verify the specific allocation of assets among the four included managers (Principal Global Investors, Principal Real Estate Investors, Principal Life Insurance, and Principal Financial Services) to understand which entity holds specific positions.
- Concentration Risk: The top 10 holdings represent a significant portion of the total $20.4 billion portfolio value, indicating a concentration in mega-cap blue-chip stocks.
- Real Estate Exposure: While the primary focus is equities, the inclusion of "Principal Real Estate Investors, LLC" suggests significant holdings in Real Estate Investment Trusts (REITs) such as Kimco Realty, Prologis, and Ventas, which should be analyzed separately for sector exposure.
- Voting Authority: All reported shares are listed with "Defined" voting authority, meaning the managers have the right to vote these shares, either solely or shared with other managers.