Business Context and Reporting Period
Reporting Manager: Principal Financial Group, Inc.
Filing Type: Form 13F-HR (Combination Report)
Reporting Period: Quarter Ended September 30, 2012
Submission Date: November 05, 2012
Scope: This report aggregates holdings for Principal Financial Group, Inc. and five other included managers (Spectrum Asset Management, Columbus Circle Investors, Edge Asset Management, Origin Asset Management, and Post Advisory Group).
Key Financial Metrics
Total Portfolio Value: $36,459,832,000 (Approx. $36.46 Billion)
Total Number of Holdings: 3,880 entries
Asset Class: Primarily U.S. Equity securities (Common Stock).
Top Sector Exposure: Financials, Healthcare, Technology, and Energy.
Largest Single Position: Pfizer Inc. (10,852,781 shares) and Wells Fargo & Co. (8,626,898 shares) represent significant capital allocations.
Top 10 Holdings by Share Count
| Issuer | Shares Held | Voting Authority |
|---|---|---|
| Pfizer Inc. | 10,852,781 | Sole |
| Wells Fargo & Co. | 8,626,898 | Sole |
| General Electric Co. | 13,914,906 | Sole |
| Microsoft Corp. | 9,702,739 | Sole |
| Bank of America Corp. | 14,538,673 | Sole |
| AT&T Inc. | 7,300,843 | Sole |
| Verizon Communications Inc. | 3,247,140 | Sole |
| Exxon Mobil Corp. | 5,954,655 | Sole |
| UnitedHealth Group Inc. | 2,457,942 | Sole |
| Wal-Mart Stores Inc. | 2,344,743 | Sole |
Material Changes and Portfolio Composition
Comparison to Prior Period: The filing text provided does not contain data for the prior quarter (June 30, 2012); therefore, specific material changes in share counts or value cannot be calculated from this document alone.
Portfolio Structure: The portfolio is highly diversified across 3,880 distinct security entries. Voting authority is predominantly "Sole" or "Shared" among the reporting managers, with a small portion of "Discretionary" authority noted for specific REIT and BDC holdings (e.g., Apartment Investment & Management Co., Prologis Inc.).
Notable Holdings: Significant positions exist in major financial institutions (JPMorgan Chase, Citigroup, Bank of America), healthcare giants (Johnson & Johnson, UnitedHealth), and technology leaders (Apple, Cisco, Intel).
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: No specific risks or contingencies are disclosed in this filing. The portfolio is subject to standard market risks associated with equity investments, including sector concentration in Financials and Healthcare.
Unusual Items: The report includes a "Combination Report" designation, indicating the aggregation of accounts managed by Principal Financial Group and its subsidiaries/affiliates. Some holdings show "Shared" voting authority, indicating co-management of specific assets.
Investor Verification Checklist
- Valuation Accuracy: Verify the total portfolio value of $36.46 billion against the current market prices of the top 20 holdings to assess concentration risk.
- Manager Attribution: Confirm which specific subsidiary (e.g., Principal Global Investors vs. Principal Life Insurance Co.) holds the largest positions, as this impacts the risk profile of the parent company.
- Turnover Analysis: Compare this filing against the Q2 2012 13F filing to calculate the actual turnover rate and identify significant buys or sells in the third quarter.
- REIT Exposure: Review the "Shared" voting authority entries (e.g., Prologis, Ventas, Equity Residential) to understand the extent of Real Estate Investment Trust exposure.
- Derivatives: Note that this filing only reports long equity positions; verify if the firm has significant short positions or derivatives reported in other filings (e.g., 13F-HR does not cover short sales or options).