Financial and Investment
Our aim is to provide clear and transparent information regarding our financial position, fees, investment philosophy, and performance. Additional information is available through Brian Hamilton, our Chief Financial Officer.
Read our 2020 Annual Report here.
Account Management and Administrative Fees
Legacy Deo’s operations are funded by account management fees, gifts and bequests, interest and dividends generated by invested reserves, administrative fees, and financial support from the Texas District of The Lutheran Church—Missouri Synod. Our fee schedule is as follows:
Marketable Securities Gifts
One-time gifts are charged $25 to receive, sell, and distribute the net proceeds. This amount includes up to three distributions to external ministries or charities. An additional fee of $10 per distribution is charged when the number exceeds three. Statutory fees charged by securities brokers are netted against the proceeds prior to distribution.
For recurring gifts, we require a pass-through trust account to be opened. A one-time fee of $50 is charged to open the account, which also covers processing the first gift transaction. Subsequent gifts incur fees at the same rate as one-time gifts. A minimum balance of $250 is required to maintain an active pass-through trust. Upon closure of the account, this minimum balance is passed through to the final ministry or charity.
Real Estate Sale
Most trusts require preparation of an annual tax return. Our base fee is $85, which includes preparation of taxpayer forms such as K-1 and 1099. Complex returns requiring additional preparation time are charged a minimum of $125.
Read our investment policy statement here.
Legacy Deo is pleased to offer our clients five investment funds having distinct return objectives. Two cover the full spectrum of fixed income securities, two address different equity strategies, and one provides non-correlated assets as an alternative to traditional investments. Each fund is professionally managed by one or more firms in concert with our investment consultant, Graystone Consulting – a business of Morgan Stanley. Assets are held through our Morgan Stanley brokerage relationship.
A summary by investment fund is as follows:
|Objective||Investment Types||Management Firm(s)|
|Fixed Income||Corporate bonds|
US Treasuries and agencies
Corporate asset-backed securities
Bond mutual funds
(all rated AAA to BBB)
|Sage Advisory Services
|Equity Growth||Growth-oriented stocks|
|Equity Dividend||Dividend-paying stocks|
|Bahl & Gaynor, Inc.
Silvercrest Asset Management
|Higher-Yield||Bond mutual funds|
Real estate investment trusts
(some rated BB and below)
|Various mutual fund families|
|Liquid Alternatives||Energy-sector MLP mutual funds|
|Alkeon Capital Management
Millennium International Ltd.
Shannon River Capital Management
Various mutual fund families
Allocation to these funds is dependent upon the objective of the underlying account, its distribution time horizon, and input from the accountholder. By varying the degree of allocation to the underlying funds, we are able to create portfolios that range anywhere from conservative to aggressive. Our investment philosophy is different than that of the typical individual investor, who tends to focus mainly on accumulation. Because Legacy Deo is in a perpetual phase of distribution, our orientation is toward long-term capital preservation and reasonable risk-reward tradeoffs.