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Preparing for migration

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Topics of interest

Global security settlement

Data transmissions testing

Investment manager coordination

Account-level tax reporting

SOC 1 and SOC 2 auditing

Physical vault asset re-registration

Shareholder notifications

Revenue sharing arrangement

Change in client contact or role

Incoming Fed wire, domestic security settlement, Automated Clearing House (ACH), and check instructions excluding fee payments

Note: Starting Feb. 22, 2022, please use the following instructions. Until then, continue to use the instructions you use today for Wells Fargo.

Incoming Fed wire

  • Bank name: Wells Fargo Bank, N.A. (Principal Financial Group® uses Wells Fargo for wire processing.)
  • City, State: San Francisco, CA (Street Address: 420 Montgomery Street / Zip Code: 94104)
  • Routing Transit Number (ABA Number): 121000248
  • Beneficiary account number (Principal DDA): 4516058948
  • Beneficiary account name: Principal Bank PCS Incoming Wire or ACH
  • Trust account number and name (FFC): Principal® Custody Solutions Account number and name

Fed

  • The Bank of New York Mellon (BNYM)
  • ABA: 021000018
  • Party Mnemonic: CUST
  • A/C: 944107 Principal Financial Group Federal Reserve

Automated Clearing House (ACH)

  • Routing Transit Number (ABA): 121000248
  • Beneficiary account number: 4516058948
  • Beneficiary account name: Principal Bank PCS Incoming Wire or ACH
  • Tran code: 22
  • FFC: Principal® Custody Solutions Account number and name

DTC

  • Participant number: 2925
  • Agent bank ID: 78861
  • Principal account number: Principal® Custody Solutions Account number and name
  • Institution number: [This is your institution number if you have affirmation responsibility. If Principal® Custody Solutions has affirmation responsibility, please use 78861.]

Physical Depository Trust & Clearing Corporation (DTCC) Custody-New York Window

  • DTCC, New York Window
  • ATTN: Principal Bank, Participant ID 2925
  • Newport Office Center
  • 570 Washington Blvd, 5th Floor
  • Jersey City, NJ 07310
  • Principal® Custody Solutions Account number and name

To Be Announced (TBA) trades (48 hours prior to settlement)

  • Bank name: Wells Fargo Bank, N.A.
  • ABA: 121000248
  • 420 Montgomery Street
    San Francisco, CA 94104
  • SEI Private Trust FBO Principal Financial Group  2020050841174
  • Attn: TBA wire settlement
  • FFC: Principal® Custody Solutions Account number and name
  • Note: These wire instructions are strictly for TBA processing.

Incoming checks

Continue to send your checks to your assigned service center location.

You will be provided updated contact information from your relationship service team prior to migration.
 

Global security settlement

Global security instructions will be provided soon, if applicable.

The primary asset identifier for global securities will be shifting from CUSIP* to SEDOL**. A SEDOL will appear anywhere that a CUSIP currently appears. As you may know, SEDOLs encode market-level information about assets, making them useful for uniquely identifying securities that are eligible to trade or settle in more than one location.

 

This change will go into effect Feb. 22, across all statements, reports, and data feeds originating from the recordkeeping system of Principal® Custody Solutions.

Processing guidelines and service commitments

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Hours of operation are 8:00 a.m. – 5:00 p.m. Central Time (CT); these are the same hours of operations you experience today.

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All requests must be received in writing from an authorized signer.

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Your account name and number must be included on all correspondence.

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Investment of funds into the sweep vehicle is dependent upon your receipt of funds prior to the sweep vehicles deadline. Disbursement of funds is also dependent on sweep deadlines.

Note: Pre-notification of incoming cash will ensure prompt posting of your funds.

Cash receipts

  • Checks – Deposited on the same day received.
  • ACH – Processed the same day request is received if by 1:30 p.m. CT.
  • Account to account transfers of cash – Processed the same day request is received if by 2:30 p.m. CT.
  • Incoming wires – Processed the same day as notification is received if by 1:30 p.m. CT.

Cash disbursements

  • Checks – Issued the same day request is received if by 2:00 p.m. CT.
  • ACH – Processed the same day request is received if by 1:30 p.m. CT.
  • Account to account transfers of cash – Processed the same day request is received if by 2:30 p.m. CT.
  • Outgoing wires – Processed the same day request is received if by 1:30 p.m. CT.
Note: Pre-notification of incoming cash will ensure prompt posting of your funds.
Note: Initial Purchases of Mutual Fund deadlines vary by fund. Principal® Custody Solutions requires all initial purchases of mutual funds be submitted by 10:30 a.m. CT. However, if the fund prospectus states an earlier cutoff, please submit your request at least 30 minutes prior to the time stated in the prospectus. The request must be submitted on a Principal® Custody Solutions Initial Purchase Form.

Trades

  • All orders received by 12:30 p.m. CT will be traded the same day.
  • All orders received after 12:30 p.m. CT will be traded on a best-effort basis for same day.

TBA settlement

  • Good pool allocations must be communicated to Principal® Custody Solutions within 48 hours of settlement date.
  • Netting sheets must be received two days prior to the settlement date of the TBA.
  • Outbound wires will be sent on settlement date by 12:00 p.m. CT, if netting sheets are received prior to settlement date.
  • TBAs will be settled if the inbound wire is received by 2:00 p.m. CT.
  • Pair-off trades are reversed if wire funds are not received within two weeks of the TBA settlement date.

Free/In-kind transactions

  • All free security transactions received by 12:30 p.m. CT will be initiated same day.
  • All free security transactions received after 12:30 p.m. CT will be initiated on a best-effort basis for same day. Please consult with your customer service associate if special handling is required.

Cash and trade transaction request forms and instructions

Prior to your organization’s migration, you'll receive an email with the new Principal® Custody Solutions cash and trade transactions request forms. The email will also include your specific service center mailing address, email, phone, and fax numbers. It will also include the servicing timing you can expect.
Note: Your service center location is not changing with the migration to Principal® Custody Solutions.

Data transmissions testing

We’re working directly with investment managers to confirm their account access, enable data transmission activity, and SWIFT3 connectivity. Data transmission testing is occurring now with investment managers, consultants, and third party data aggregators to prepare for your first day at Principal® Custody Solutions.
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icon of three people representing investment managers coordinating together on the migration process.

Investment manager coordination

Principal® Custody Solutions will coordinate directly with your investment managers to ensure they receive the proper notification to update security delivery instructions, data transmissions and web access prior to the migration. A separate migration guide will be provided to investment managers.
icon of three people representing investment managers coordinating together on the migration process.

Account-level tax reporting

The Principal® Custody Solutions team that will provide your account-level tax reporting is PCS TAX. One of their top priorities is to provide post-migration tax information in a similarly formatted tax document as what you and your tax professionals currently receive from Wells Fargo Bank, N.A.. Principal Bank® has contracted with PricewaterhouseCoopers (PwC) as the tax provider for this work; it’s the same tax provider Wells Fargo IRT uses for this work.

What to expect in the year of migration

For your account(s) currently subject to informational reporting on the tax-reportable income received into the account(s) - for example, a Form 1099 (U.S.) or Form 1042-S (NRA) – you’ll receive two such items in the year of transition. One tax report will come from Wells Fargo Bank, N.A. and one will come from Principal® Custody Solutions.

 

For your account(s) that are tax-reportable trusts, providing you with a client deliverable each year - for example, a Grantor/Tax Information Letter or Schedule K-1 – you’ll receive only one such item in the year of transition. Principal® Custody Solutions will provide you with the combined full-year tax reporting for your trust(s) and file the required tax returns in a single full-year return with the Internal Revenue Service (IRS), and applicable state taxing authorities.

 

More information will be provided including channels of communication and contact details.

SOC 1 and SOC 2 auditing

As part of the migration process, Principal® Custody Solutions reviewed the Wells Fargo IRT and Wells Fargo Trust Services Group (TSG) control objectives and corresponding controls applicable to the business at Principal® Custody Solutions to create the Principal Bank SOC 1 report. The reports will be similar, but it’s important to remember that Ernst & Young LLP (EY) serves as the Principal Bank auditor and KPMG serves as the Wells Fargo IRT auditor. The intended plan for SOC 1 and SOC 2 reporting as it relates to migration is as follows:

Wells Fargo IRT SOC 1 report

  • The standard set of Wells Fargo SOC 1 reports will cover activity through your migration date to Principal® Custody Solutions.
  • Contact your client service consultant to request copies of the report.
  • If there are any questions regarding the Wells Fargo IRT reports, contact your relationship manager.

Principal Bank SOC 1 report

  • The Principal Bank SOC 1 report will cover activity from the migration date through September 30, 2022, with a bridge letter to cover the period through year end.
  • The Principal Bank SOC 1 report will be available in the month following year-end and will be available on your client portal.
Note: Principal Trust Company® is the named service provider for many of the legacy Wells Fargo IRT Trust & Custody clients. Because Principal Bank provides sub-custody and agency services on behalf of Principal Trust Company, Principal Bank will handle the administrative and operational aspects for Principal Trust Company clients. The SOC 1 report will cover the Principal Bank control environment applicable to Principal® Custody Solutions.

Principal Bank SOC 2 report

  • The Principal Bank SOC 2 report will cover overall technology security activities.
  • A specific Principal® Custody Solutions SOC 2 report will be available in late 2023. 

Physical vault asset re-registration

Asset movement will be coordinated as part of the migration weekend. Principal® Custody Solutions will be responsible for the physical asset re-registration post-migration weekend.
Icon of dotted connected to representing communication sharing.

Shareholder notifications

Unlike Wells Fargo IRT, Principal® Custody Solutions won’t forward notices for certain irregular/predatory/non-traditional shareholder matters routinely ignored by commercial custodians or their agents in the normal course of business. For specific examples of the types of actions, please contact your relationship manager. Principal® Custody Solutions reserves the right to revise its policy/procedures on shareholder actions from time to time without notice.
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Revenue sharing arrangement

Revenue sharing, if any, is detailed in trading agreements established between the custodian/trustee and the respective mutual fund companies. These agreements are separately negotiated between the custodian/trustee and the respective mutual fund company and as a result, may have differences in the terms contained within those agreements. With the migration to Principal® Custody Solutions, revenue sharing, if any, will be based on Principal® Custody Solutions or their service provider trading agreements. This may result in changes in the rate (increases or decreases) made available and the frequency in which payments are remitted to Principal® Custody Solutions. It may also result in revenue share being made available to Principal® Custody Solutions that was previously not available to collect under the terms of the Wells Fargo agreements.

Change in client contact or role

To change any of your organization’s contacts/roles either prior to or after migrating to Principal® Custody Solutions, please email your relationship manager or client service consultant. You’ll need to include the following details:
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Name of person being removed and their listed role

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Name of new person being assigned and the role being filled

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Contact information of new contact (email and phone number)

CUSIP stands for Committee on Uniform Securities Identification Procedures.

** SEDOL stands for Stock Exchange Daily Official List.

DTCC stands for the Despository Trust & Custody Clearing Corporation.

OTW stands for over the window.

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized, and reliable environment. They are not an affiliate of any company of the Principal Financial Group®.


The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other professionals on all matters pertaining to legal, tax, investment or accounting obligations and requirements.


Information provided is solely for illustrative purposes only and the actual terms of the services are governed by the organization’s applicable service agreement(s).


Principal Financial Group closed the acquisition of certain assets of the Wells Fargo Institutional Retirement and Trust business (IRT) on July 1, 2019. During the transition period, Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company, will continue to operate and service the IRT business for the benefit of Principal®, including providing recordkeeping, trustee, and/or custody services.


Wells Fargo has not reviewed the content of the attached material and makes no judgment of its accuracy.


Investment and Insurance products are:

  • Not Insured by the FDIC or Any Federal Government Agency
  • Not a Deposit or Other Obligation of, or Guaranteed by, Principal Bank or Any Bank Affiliate
  • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

 

1859445-102021 | 02/2022

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Principal Global Advisors is a specialized investment management group within Principal Global Investors. Principal Global Investors leads global asset management at Principal®.

 

Custody and trust services are provided by Principal Bank®, Member FDIC, and/or Principal Trust Company®. These services are provided under the trade name Principal® Custody Solutions, a division of Principal Bank. Principal Trust Company is a trade name of Delaware Charter Guarantee & Trust Company. Principal Bank and Principal Trust Company are members of the Principal Financial Group®, Des Moines, Iowa 50392.

 

When Principal Custody Solutions is providing investment management services, Principal Custody Solutions serves as the investment manager or discretionary trustee but leverages the investment expertise of Principal Global Advisors. Customers may also contract directly with Principal Global Advisors for investment management services. In those instances, Principal Custody Solutions serves solely in a custodial or trustee capacity. Please refer to your underlying service agreements for details.

 

Wells Fargo Bank, N.A., SEI Investments Company (“SEI”), Clearwater Analytics, FedEx Corporation, The Bank of New York Mellon, Depository Trust & Clearing Corporation (“DTCC”), FIS, SWIFT, PricewaterhouseCoopers (“PwC”), Ernst & Young, and KPMG are not affiliates of any company of the Principal Financial Group®.

 

Principal Global Investors, Principal Bank, and Principal Trust Company are members of the Principal Financial Group®, Des Moines, Iowa 50392. Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

 

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