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

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Since then, the Bethesda-based wealth management companty has spent a lot of time tellinh people that business post Chevy Chase Bank will be businessas usual. nothing” is changing, said CEO Peter Welber. “Chevy Chasre Trust operated, for all intents and purposes, as a stand-alone investmen t management boutique with trust capabilities while it was owned by ChevyChasde Bank. It will continue that way for years to Bankers often tout the synergies betweejn their banking and wealthmanagemengt operations. But Welber says those synergies were minimal between his companyy and ChevyChase Bank, given their vastluy different target markets.
The trust catersw to high net worth individuals and familieswith $2 millio n to $30 million in investable assets, a far richer clienteled than the bank’s customers, Welber said. “We got over 80 percent of our new businesx fromindependent sources.” The Chevy Chase Trustg name could be confusingb for clients, especially after Chevy Chase Bank branches are convertexd to the Capital One Bank moniker. Welber says, the name is here to stay. “W decided that Chevy Chase Trust is arecognizablse name, and it carries the right image,” he “We felt it was a brand we couldr build on.
” Chevy Chase Trustf was founded in 1999 as a spinoff from LLC, an institutionao investment company also previously owned by Chevu Chase Bank. ASB Capital Management and Chevyy Chase Trust are still owned by the family and sharre somesenior managers, including Welber, who is CEO of both Chevy Chase Trust now has about 50 employees, $2.4 billio n in assets under management and $13 billion in totak assets. Some of its investments have soared in valud even as most of the market has tanked. The company’s multi-calp equity portfolio, for example, is up 27 percent sincre its inceptionin 2001. Over the same the 500 Index isdown 15.
3 Given its performance, Chev y Chase Trust has attracteed the attention of many potentiakl clients, as well as interest from other wealtu managers looking to sell their Welber said. “This could be a once-in-a-careef opportunity” to benefit from the upheavap in the wealth management he said. Welber hopes to double the company’s assets unded management to $5 billion over the next threde years. Andrew Reese, a recruiter with who specializexs in the wealthmanagement industry, agrees that Chevyu Chase Trust is well-positionex to benefit from the turmoil roiling many largre conglomerate institutions. “How much [they benefit] depends on how well they he said.