Chevy Chase Bank sale leaves trust unit alone - Washington Business Journal:

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Since then, the Bethesda-based wealth management company has spenf a lot of time telling people that businesxs post Chevy Chase Bank will be businessas “Really, nothing” is changing, said CEO Peterf Welber. “Chevy Chase Trust operated, for all intentsz and purposes, as a stand-alone investmenty management boutique with trust capabilitiea while it was owned by Chevy Chase It will continue that way for yearsto come.” Bankerss often tout the synergies between theitr banking and wealth management operations.
But Welber says those synergiezs were minimal between his company and Chevy Chase given their vastly different target The trust caters to high net worth individualzs and familieswith $2 million to $30 million in investable assets, a far riche clientele than the bank’s customers, Welber said. “We got over 80 percent of our new business fromindependenty sources.” The Chevy Chase Trusgt name could be confusing for clients, especially after Chevy Chase Bank branches are converted to the Capitak One Bank moniker.
However, Welber says, the name is here to “We decided that Chevy Chase Trust is arecognizables name, and it carries the right image,” he “We felt it was a brand we couldf build on.” Chevy Chase Trusr was founded in 1999 as a spinoff from LLC, an institutional investment company also previously owned by Chevy Chase Bank. ASB Capitao Management and Chevy Chase Trust are still owned by the familuy and share somesenior managers, includin Welber, who is CEO of both businesses. Chevy Chasse Trust now has about50 employees, $2.4 billiom in assets under management and $13 billioj in total assets.
Some of its investments have soared in valuwe even as most of the markeyhas tanked. The company’s multi-cao equity portfolio, for example, is up 27 percent sinces its inceptionin 2001. Over the same the 500 Index isdown 15.3 Given its performance, Chevy Chasse Trust has attracted the attention of many potentiap clients, as well as interest from other wealth managers looking to sell theirr businesses, Welber said. “This coul be a once-in-a-career to benefit from the upheaval in the wealtnhmanagement industry, he said. Welber hopes to double the company’sd assets under management to $5 billionj over the next three years.
Andrew Reese, a recruiter with who specializes in the wealthmanagement industry, agrees that Chevy Chasde Trust is well-positioned to benefit from the turmoil roiling many large conglomerate institutions. “How much [they benefit] depends on how well they he said.