Truist Announces Agreements to Sell its Institutional Retirement Business
Truist Financial Corporation (NYSE: TFC) has sold its institutional 401(k) investment advisory services to OneDigital and signed agreements to sell its recordkeeping businesses to Ascensus and Empower Retirement. The OneDigital sale, which involves about 1,200 plans with $10 billion in assets, closed on December 31, 2020. Ascensus and Empower are set to acquire the recordkeeping businesses, each managing around $5 billion in assets. Truist aims to focus on growth and strategic investments in wealth management amid industry consolidation.
- Sale of 401(k) advisory services enhances operational focus.
- Partnerships with Ascensus and Empower expand market capabilities.
- Loss of institutional 401(k) business may affect future revenue streams.
CHARLOTTE, N.C., Jan. 6, 2021 /PRNewswire/ -- Truist Financial Corporation (NYSE: TFC) today announces it has sold its institutional 401(k) investment advisory services business to OneDigital Investment Advisors (OneDigital), and that it has signed definitive agreements to sell its institutional 401(k) recordkeeping businesses to Ascensus and Empower Retirement (Empower). The OneDigital transaction closed Dec. 31, 2020; the Ascensus and Empower transactions are scheduled to close in the first quarter of 2021.
Under the terms of the OneDigital agreement, investment advisory services for approximately 1,200 plans, representing
Ascensus will acquire the heritage BB&T 401(k) recordkeeping business which includes more than 1,200 retirement plans, consisting of approximately 125,000 plan participants and
"The institutional 401(k) industry has experienced significant consolidation, and Ascensus, Empower and OneDigital are well-positioned to provide scale and expertise for our plan sponsor clients and their plan participants," said Joe Thompson, head of wealth for Truist. "Truist will continue to focus on growth opportunities and make strategic investments in our wealth management business that advance our digital capabilities and expand our team of advisors. The combination of technology and touch allows us to build trusted relationships with our clients as we partner with them to achieve their greatest potential."
Alston & Bird served as legal counsel and Truist Securities served as financial advisor to Truist.
About Truist
Truist Financial Corporation is a purpose-driven financial services company committed to inspire and build better lives and communities. With 275 years of combined BB&T and SunTrust history, Truist has leading market share in many high-growth markets in the country. The company offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is the sixth-largest commercial bank in the U.S. with total assets of
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SOURCE Truist Financial Corporation
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