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Truist (TFC) Signs Deals to Sell Institutional Retirement Business
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Shares of Truist Financial Corporation (TFC - Free Report) gained 3% after the company announced that it sold its institutional 401(k) investment advisory services business to OneDigital Investment Advisors, and that it agreed to sell its institutional 401(k) recordkeeping businesses to Ascensus and Empower Retirement. The financial terms of none of the three transactions have been disclosed yet.
The deal with Ascensus and Empower is expected to be completed in first-quarter 2021.
Notably, Ascensus is expected to acquire Truist Financial’s heritage BB&T 401(k) recordkeeping business, which includes more than 1,200 retirement plans that consist of 125,000 plan participants and assets worth $5 billion.
Then again, Empower is set to acquire the heritage SunTrust 401(k) recordkeeping business, including 300 retirement plans, consisting of 73,000 participants and $5 billion in assets.
The head of wealth for Truist Financial, Joe Thompson, stated, “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. 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.”
Truist Financial, formed following the ‘merger of equals’ deal between BB&T Corp and SunTrust Banks, is the sixth-largest bank in the United States.
Over the past six months, shares of Truist Financial have gained 53.2% compared with 41.6% growth recorded by the industry it belongs to.
Notably, there has been a rise in restructuring activities in the finance sector. Last month, Wells Fargo (WFC - Free Report) agreed to sell its private student loan portfolio to investors, which will be serviced by Firstmark. The transaction is likely to close in the first half of 2021.
The Bank of New York Mellon Corporation (BK - Free Report) announced that it is set to sell its Canada-based wealth management business to Guardian Capital Group Limited. Closing of the deal is expected in first-quarter 2021 and is subject to regulatory approvals. Also, People’s United completed the divesture of People's United Insurance Agency to AssuredPartners. The all-cash deal worth $120 million was announced in September 2020.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Truist (TFC) Signs Deals to Sell Institutional Retirement Business
Shares of Truist Financial Corporation (TFC - Free Report) gained 3% after the company announced that it sold its institutional 401(k) investment advisory services business to OneDigital Investment Advisors, and that it agreed to sell its institutional 401(k) recordkeeping businesses to Ascensus and Empower Retirement. The financial terms of none of the three transactions have been disclosed yet.
The deal with Ascensus and Empower is expected to be completed in first-quarter 2021.
Notably, Ascensus is expected to acquire Truist Financial’s heritage BB&T 401(k) recordkeeping business, which includes more than 1,200 retirement plans that consist of 125,000 plan participants and assets worth $5 billion.
Then again, Empower is set to acquire the heritage SunTrust 401(k) recordkeeping business, including 300 retirement plans, consisting of 73,000 participants and $5 billion in assets.
The head of wealth for Truist Financial, Joe Thompson, stated, “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. 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.”
Truist Financial, formed following the ‘merger of equals’ deal between BB&T Corp and SunTrust Banks, is the sixth-largest bank in the United States.
Over the past six months, shares of Truist Financial have gained 53.2% compared with 41.6% growth recorded by the industry it belongs to.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, there has been a rise in restructuring activities in the finance sector. Last month, Wells Fargo (WFC - Free Report) agreed to sell its private student loan portfolio to investors, which will be serviced by Firstmark. The transaction is likely to close in the first half of 2021.
The Bank of New York Mellon Corporation (BK - Free Report) announced that it is set to sell its Canada-based wealth management business to Guardian Capital Group Limited. Closing of the deal is expected in first-quarter 2021 and is subject to regulatory approvals. Also, People’s United completed the divesture of People's United Insurance Agency to AssuredPartners. The all-cash deal worth $120 million was announced in September 2020.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>