Not Every Great Idea Is An Investable Idea.
At Chevy Chase Trust
We Know The Difference.
Every wealth management firm has a starting point when it comes to investment strategy. At Chevy Chase Trust, our foundation is built upon the powerful secular trends, disruptive ideas, innovations and economic forces that are constantly reshaping the world. We call this Global Thematic Investing.
This approach isn’t just about recognizing global market shifts; it’s about understanding how those changes will shape future corporate performance across industries, geographies and sectors. And it’s at the core of how we build portfolios designed to thrive in a world of constant transformation.
Our Approach
For more than two decades, we have honed our Global Thematic Investing approach by focusing on companies positioned to capitalize on transformative global themes while avoiding those likely to be disrupted. Our research-driven framework combines detailed insights with rigorous analysis of economic conditions, corporate health and market volatility. Our philosophy lets us pursue the true potential in each individual portfolio.
Our Process
We don’t just follow secular trends; we anticipate their effects and position you to benefit from them. Our experienced team of portfolio managers, financial and estate planners and trust officers work together to ensure that your wealth strategy is optimized for long-term success. With our depth of knowledge and agility, we are well-positioned to seize opportunities in any environment.
Our Themes
Advent of Molecular Medicine
After decades of promise, breakthroughs in genomics have changed the practice of medicine. Genomic sequencing technology, clinical knowledge and data analytics have converged to generate diagnostics and treatments specific to individual patients and diseases. More data-intensive practices will likely improve medical outcomes and alter which companies in the healthcare ecosystem win or lose. Those companies leading the genomic medical revolution are well positioned for long-term outperformance.
End of Disinflationary Tailwinds
After four decades of declining interest rates and ten years of very low inflation, both rates and inflation have returned to long-term norms. While the impact of higher interest rates was initially cushioned in the U.S. by the long-term, fixed-rate debt that many consumers and companies locked-in during the pandemic, sustainably higher levels of inflation and rates mark a notable shift in the global investment landscape and creates investment opportunities.
Next-Generation Automation
As the global labor force ages and the need for supply-chain redundancies becomes more acute, companies are increasingly seeking ways to do more with fewer people. Automation technologies, previously concentrated in automobile and electronics production, have matured and reached an inflection point. These technologies now offer attractive returns on investment to companies across many industries.
Opportunities Abound Abroad
U.S. equity markets have significantly outperformed global equity markets since 2004. Recent structural reforms in fiscal, energy, industrial and capital-market policies are taking hold in several non-U.S. geographies, creating investment opportunities. Both Europe and China are taking steps to stimulate domestic consumption and to expand their technology capabilities. These policies, coupled with potential future weakness in the U.S. dollar, should lead to better equity performance in certain industries and companies outside the U.S.
Rise of Purpose-Built Technology
For nearly 50 years, the performance and cost of computing technologies improved exponentially, as Moore’s Law predicted. As physical and economic challenges limit such rapid growth, improvements will come from specialized, purpose-built solutions, rather than one-size-fits-all approaches. Those firms that generate and leverage bespoke, high-quality proprietary data and technology solutions will displace prior scale-based winners.
