Truist Financial Corp., Charlotte, N.C., overhauled the investment options lineup of its 401(k) plan in 2020 following its merger with another plan, confirmed spokeswoman Amy Konrath in an email.
The SunTrust Banks Inc. 401(k) Plan was merged into the Truist Financial 401(k) Savings Plan, effective July 31, 2020. The plan’s employee benefit plan committee worked with Truist’s investment consultant in re-evaluating the plan’s investment lineup and selected those “most appropriate for Truist,” Ms. Konrath said.
Truist Financial Corp. announced the completion of the merger of subsidiary BB&T Corp. and SunTrust Banks Inc. in December 2019.
A comparison of the company’s 11-K filing Monday with the SEC Truist's prior 11-K filing and the SunTrust plan's 2019 Form 5500 filing shows the newly merged plan added 10 mutual funds not previously held in either plan.
According to the new 11-K filing, the new funds and their assets in the newly merged plan as of Dec. 31 were:
- MFS Growth Fund, $688 million.
- T. Rowe Price Institutional Mid Cap Fund, $659 million.
- Dodge & Cox Income Fund, $247 million.
- MFS Mid Cap Value Fund, $212 million.
- Brown Advisory Small Cap Growth Index Fund, $135 million.
- RBC Emerging Markets Equity Fund, $68 million.
- PIMCO Long-Duration Total Return Fund, $62 million.
- Fidelity Inflation-Protected Bond Fund, $56 million.
- BBH Limited Duration Fund, $48 million.
- Harbor Diversified Internal Mid Cap Fund, $2 million.
The newly merged plan also features a target-date fund lineup managed by Vanguard Group, which had a total of $3.2 billion in assets in the plan as of Dec. 31.
The Truist plan previously featured a T. Rowe Price Group target-date fund lineup, which had $1.4 billion in assets in the plan as of Dec. 31, 2019, according to the company's prior 11-K filing.
Also as of Dec. 31, 2019, the SunTrust 401(k) plan's entire investment options lineup, including a target-date fund lineup, was managed by Vanguard. Assets totaled $3.5 billion, according to the plan's Form 5500 filing of that date.
The newly merged plan retained five of the 13 Vanguard funds previously held by the SunTrust plan.
The comparison between Truist's new and prior 11-K filings shows six funds were removed from the plan in 2020.
As of Dec. 31, 2019, the Sterling Capital Special Opportunities Fund, Sterling Capital Equity Income Fund and Sterling Capital Behavioral Large Cap Value Equity Fund had $332 million, $318 million and $237 million, respectively, in assets in the plan, according to Truist's prior 11-K filing.
The other three funds, and their assets in the plan as of Dec. 31, 2019, were the Fidelity Contrafund, $281 million; T. Rowe Price Mid Cap Growth Fund, $264 million; and Federated Treasury Obligations Fund, $91 million.
As of Dec. 31, the Truist Financial Corp. 401(k) Savings Plan had $9.7 billion in assets, according to the new 11-K filing.
