Ascensus and Empower Retirement have purchased Truist Financial Corp.'s institutional 401(k) record-keeping businesses. OneDigital Investment Advisors, meanwhile, announced its purchase of Truist's institutional 401(k) investment advisory services business.
The Truist Financial Corp.'s institutional 401(k) record-keeping businesses that Ascensus acquired covers more than 1,200 plans with about 125,000 participants and $5 billion in assets. Ascensus will also serve as the record keeper for the heritage BB&T plans as well as the plans for which it currently serves as outsourced record keeper.
Empower will acquire the heritage SunTrust 401(k) record-keeping business, which includes about 300 retirement plans consisting of more than 73,000 plan participants and $5 billion in plan assets.
The Ascensus and Empower transactions are scheduled to close in the first quarter of 2021.
Under the terms of the OneDigital agreement, meanwhile, investment advisory services for approximately 1,200 plans, representing $10 billion in plan assets, will now be delivered by OneDigital. The OneDigital transaction closed December 31, 2020.
"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."