In the 1970s, Glenmede began broadening its client base beyond the Pew Trusts. Unlike other privately held wealth management firms, Glenmede's founding purpose was to serve as trustee for the family's philanthropic interests. Three generations of Pews are currently represented on the Glenmede board of directors.
Glenmede, which also has branches in Delaware, Ohio and New Jersey, has about 1,700 high-net-worth individuals and institutions with total assets of about $17 billion. That's down some $3 billion from three years ago. Typical clients have a net worth of $10 million to $15 million. Glenmede's average client account is about $8 million.
Glenmede's raison d'etre, its principals say, is wealth and investment management alone, and that model has been critical to its success, say both insiders and industry observers.
Rating The Firms
Independent
firms like Glenmede and competitor Bessemer Trust rank in the top ten
of a survey conducted by the Luxury Institute, a New York consultant
that asks money managers to rate wealth management businesses in
several categories.
"Glenmede and Bessemer always seem to rate at the top as far as giving clients what they need," notes Milton Pedraza, Luxury Institute's CEO. He adds that small investment boutiques with an open architecture-and without the pressure to sell a large amount of product-tend to have an advantage over larger firms.
Glenmede also scores high marks for the perceived worthiness of its price premium and for its clients' willingness to recommend the company to others, according to the Luxury Institute.
To Glenmede officials, this is proof that the firm's model works well. In praising all firms high on the list, the institute writes that effective wealth management firms must provide unique services, making "clients feel special across the full customer experience."
A larger firm can't provide service that's as personal, Piscopo says, whereas Glenmede principals are the sort who could, say, visit clients in the hospital. That's the kind of care that only small wealth management firms can provide, Glenmede officials say.
The firm supplies everything from trust to investment management services, but doesn't manufacture its own products or offer investment banking, Piscopo adds. The panoply of services wanted by the client evolves, he says, after a relationship has developed over the years.
Glenmede Turnover
Piscopo
has been with Glenmede since the early 1970s. He says that the reason
investment banks have faced so much trouble is their lack of stability
and continuity-one of the reasons they do poorly in providing wealth
management services, which need to cater to individuals' needs.