Trust and custody questions and answers

What trust accounting platform was selected?

After a comprehensive analysis, we've selected the SEI trust accounting platform Wells Fargo Institutional Retirement & Trust (IRT) uses today to serve trust and custody clients migrating from Wells Fargo IRT. The reliable, high-quality platform supports the needs of our current business and provides a solid foundation to build enhancements in the future. This platform decision is another part of our commitment to making this a seamless migration experience for you.

Why was this trust accounting platform chosen?

Providing a high-quality, accurate, reliable experience is critical to serving our trust and custody clients. The existing SEI trust accounting platform currently meets those needs and also gives us the flexibility for further enhancements. In addition, we’re committed—as part of this integration—to seamlessly migrating IRT clients with no disruption of service. Using the existing SEI trust accounting platform gives both clients and service team members a familiar, reliable, trustworthy application to use, so there’s no need to learn a new system.

How does this announcement impact trust and custody clients?

Nothing changes for Wells Fargo IRT trust and custody clients today. Until you migrate to Principal®, you’ll continue to use the same client portal. Once you migrate, that client portal will be available at Principal. We’re working to mirror the web interface as much as possible, so your experience is truly seamless.

Where does the trust and custody business fit within Principal?

Trust and custody is a strategic line of business for Principal. The addition of Wells Fargo IRT’s non-retirement trust and custody business expands and enhances our offering to the market, giving us the scale to compete plus the opportunity to do more for all clients. Together, the combined organization safeguards more than $1 trillion in assets1, and builds on the 75-year history of the trust and custody services Principal has provided. For clients who require a bank as part of the trust and custody transaction, Principal Bank® has expanded its powers to provide nationwide fiduciary services.

Why does Principal want this business?

We’ve been in the trust and custody business for 75 years. The IRT acquisition brings greater scale to our business. We’re excited that we can now bring new, non-retirement capabilities to better meet the needs of our existing and growing client base. Trust and custody is a material, strategic line of business for us, and we’ll continue to invest in it.

  • Custody underlies every business unit.
  • It’s part of Retirement and Income Solutions (RIS), the largest of the 4 business segments at Principal.
  • The strength of our financial services organization2 allows us to provide the technology, client service, diverse offering, and infrastructure to support and grow this business moving forward.

Is Principal changing the service model for trust and custody?

No. There will be no change in our service model, and we’re committed to making this a seamless transition.

When and how will clients migrate?

Starting in the fourth quarter of this year, we’ve started reaching out to IRT clients to confirm the continuity of the services you enjoy today. That will allow us to continue the migration preparation work. We’ll work with clients to develop, design, and deploy communication and education strategies. As we move into 2021, we’ll begin transitioning you to the new experience. Throughout the migration process, you can count on us to provide frequent and ongoing communication. And this migration is led by a dedicated, experienced transition team, so your day-to-day service team isn’t disrupted from providing the exceptional service you deserve and expect.

What will change about the current client experience for clients who migrate to Principal?

We’re focused on making this migration as smooth as possible. Once IRT clients sign the service continuity agreement, we’ll manage the migration process from there, keeping you updated along the way. We intend to provide all the services you receive today, delivered by the same team, to create a frictionless experience. Your assets will transfer over a weekend, so you’re never out of the market. You will retain your same account numbers account history and data.

Your relationship manager will be in touch with more details. If you’d like to learn more, we have additional information about the platform announcement.

1 Pro-Forma calculations based upon data as of Dec. 31, 2017 provided by PLANSPONSOR 2018 Recordkeeping Survey and inclusive of shock lapse and new sales assumptions.

2 Fitch Rating—'AA-' Very Strong - fourth highest of 19 rating levels; S & P Global Ratings—'A+' Strong - fifth highest of 20 rating levels; A.M. Best Company—'A+' Superior - second highest of 13 rating levels; Moody's Investors Service—'A1' Good - fifth highest of 21 rating levels. Third party ratings relate to Principal Life Insurance Company and Principal National Life Insurance Company only, and do not reflect any ratings actions or notices relating to the US life insurance sector generally. Ratings current as of April 2019. Ratings are not a recommendation to buy, sell or hold a security. Ratings are subject to revision or withdrawal at any time by the assigning agency, and each rating should be evaluated independently of any other rating. Information is current as of the creation of this piece. Keep in mind that portfolio holdings are subject to risk.