Questions and answers

What are the details of the deal? What is happening?

Principal has announced the closing of its agreement with Wells Fargo & Company to acquire its Institutional Retirement & Trust (IRT) business. We will now begin the 18-month integration of the Wells Fargo IRT defined contribution, defined benefit, executive deferred compensation, employee stock ownership plans, trust and custody and institutional asset advisory businesses.

Our focus remains on bringing the best-of-the-best from both businesses together as we build out a leading financial services organization committed to helping people live their best lives. The acquisition agreement allows a long transition period. During this time, product offerings and service teams will remain consistent for clients while Principal and Wells Fargo IRT bring together capabilities from both organizations to create new value in the marketplace.

Why did Principal acquire the Wells Fargo Institutional Retirement & Trust business?

Principal and Wells Fargo IRT together represent a powerful combination for our customers, employees and shareholders. Together we have unmatched capabilities to meet the needs of a broad array of customer segments with comprehensive retirement, trust and custody and discretionary asset allocation offerings.

A large part of this deal relates to growing our retirement business and offerings. Retirement is at the heart of our business and core to our future. Principal is now a Top 5 leader across all major retirement market measures, including a top 3 provider of defined contribution plans.1 With the necessary scale to compete, invest and grow in the U.S., we’re poised to help more Americans reach their financial goals.

What will the integration look like?

We’re committed to a thoughtful and deliberate integration of our two businesses with a focus on client and employee retention. We have laid out an 18-month transition timeline that will focus on minimal disruption to the business and our clients, along with a client-centric approach to building out our combined capabilities and customer care model moving forward.

Clients should expect no change at close (no change to plan/account, operating platform, service model or team). Over the next few weeks, we will work closely with our Wells Fargo IRT colleagues to answer client questions about the integration, client consent process and future combined capabilities.

Employees of Wells Fargo IRT will continue to perform their current job responsibilities as our two teams further define what “the best of the best” means for each product line and functional area. Most Wells Fargo IRT employees will not transition to Principal until 2020.

What will be the impacts to clients of Principal?

There will be no impact to the clients of Principal. The client service teams for each business will continue to provide the great service our customers expect and work to ensure plan goals are met. Clients can look forward to more choice, solutions and service as a result of the acquisition.

What will be the impact to clients of Wells Fargo IRT?

There is no immediate impact to clients. Our organizations are committed to taking a well-planned and disciplined approach to the integration over the next 18 months. Once together, we will be able to bring expanded capabilities to our clients to provide more choice, service and solutions.

We are committed to ensure minimal disruption for you. There will be no changes to your service team, contract, pricing, account access and the administrative and operational elements of your agreement with us.

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For Principal customers and business partners, call 800-986-3343

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For investor inquiries, call 515-235-9500

1 Pro-Forma calculations based upon AUA and participant data as of Dec. 31, 2017, provided by PLANSPONSOR 2018 Recordkeeping Survey and inclusive of shock lapse and new sales assumptions.
2 Pro-Forma calculations based upon data as of December 31, 2017 provided by PLANSPONSOR 2018 Recordkeeping Survey and inclusive of shock lapse and new sales assumptions.
3 World’s Most Ethical Companies: Ethisphere Institute, February 2018.
4 Forbes, May 2018.
5 Based on number of plans, PLANSPONSOR Defined Benefit Administration survey, May 2019.
6 Based on total number of Section 409A plans, PLANSPONSOR 2018 NQDC Recordkeeping Survey, June 2018.
7 Based on number of plans, PLANSPONSOR Recordkeeping Survey, June 2017.
8 Based on data from the Morningstar 2018 Target-Date Fund Landscape report. “Active multi-managed target date funds” describes the underlying assets.