In Perspectives

Investors can be broadly broken down in to two classes:  individuals and institutions.  While the distinction between individuals and institutions is self-evident, the category of “institutional investor” is quite diverse and can include defined-benefit and defined-contribution retirement plans, foundations and endowments, insurance companies, banks, and mutual funds.  As institutions often represent large pools of money, these investors can play a significant role in capital markets.

At Legacy Trust, in addition to our wealth management services that we offer to individuals and families, we also tailor our investment solutions to serve a specific type of institutional investor:  foundations and endowments.  These organizations play a vital role in the community by financially supporting non-profit causes such as education, health, and the arts.  Many different types of foundations and endowments exist, but they typically share some key characteristics – namely, that they must balance the dual obligations to accumulate a pool of assets sufficient to build capital for future use while also supporting current philanthropic needs.  This balancing act has grown more challenging in recent years thanks to the low interest rate environment that we have been experiencing since the global financial crisis.

In light of these considerations, as well as the fact that foundations and endowments often have a number of interested parties that play a role in the stewardship of the organization’s assets, we believe the key to success is the creation of a detailed Investment Policy Statement (IPS).  The IPS acts as a strategic guide for the organization’s investments and helps maintain consistency, discipline, and focus on the long-term objectives.  Creating, maintaining, and adhering to such a document can prove invaluable when you consider that many foundations and endowments have boards, investment committees, internal staff, and external investment advisors that can change frequently over the life of the organization.  Legacy Trust has a great deal of experience in working alongside foundation staff and investment committees to develop sound Investment Policy Statements that are customized to each organization’s unique situation and preferences.

Portfolio construction becomes a fairly straightforward process once a solid IPS is in place, as that document outlines a strategic asset allocation plan, criteria for third party manager selection and evaluation, and appropriate return and risk objectives that the portfolio should be measured against going forward.  Depending on the characteristics of the foundation, we can customize our level of involvement in the investment process to best meet the organization’s needs.  For example, some foundations with greater internal resources may prefer to utilize us purely as an investment consultant and keep the final decision-making to their internal investment committee, whereas other organizations prefer to delegate a wider scope of services to Legacy Trust including full responsibility for investment decisions. We believe we can add value in either situation, and we welcome the opportunity to explore the best set of solutions for the organization depending on the circumstances.

Please do not hesitate to reach out to us if you have any questions regarding institutional investment management.  We would love to connect with you!

Legacy Trust and Your Right to Financial Privacy

At Legacy Trust we have established policies and practices that respect the financial privacy of all individuals who use our trust company. We believe it is critical to comply with the laws and regulations designed to secure your financial privacy. Your relationship with us as our client is very important to us, and we want you to understand our policies and practices about handling your information.

This Policy applies to you – This Policy applies to our relationships with individual clients who inquire about or obtain products or services from us for personal, family and household purposes.

Strict security measures – We take the security of information very seriously. We have established security standards and procedures to prevent access to client information. We maintain physical, electronic and procedural safeguards to guard client information.

Limited employee access – We have established procedures to limit employee access to information to only those employees with a business reason for accessing such information. We educate our employees about the importance of confidentiality and client privacy. We take appropriate disciplinary measures to enforce employee responsibilities regarding client information.

Why we collect information – We collect information about you to:

  • accurately identify you;
  • protect and administer your records, accounts and funds;
  • help us design or improve our products and services;
  • understand your financial needs;
  • save you time when you apply for new products and services; offer you quality products and services; and comply with certain laws and regulations;

We collect information – We collect and maintain your personal information so that we can provide investment management and other services to you. The types and categories of information that we collect and maintain about you include:

  • Information we receive from you to open an account or provide investment advice or other services to you (such as your home address, social security number, telephone, financial information and investment objectives).
  • Information that we generate to service your account or from our transactions with you (such as account statements and other financial information).
  • Information on your transactions with nonaffiliated third parties.

We have established procedures so that the financial information we collect is accurate, current and complete. We are committed to work with you to promptly correct any inaccurate information.

Our selective sharing of information – In order for us to provide investment management and other services to you, we do disclose your personal information in very limited instances, which include:

  • Disclosures to nonaffiliated companies as permitted by law, including those who help us service your account (such as providing account information to brokers and custodians).
  • Other limited disclosures as permitted by law, for example, required reports to government entities.

We do not share your information with third parties for marketing purposes. We do not sell your information.

Former clients – If you end your relationship with us, we will continue to adhere to the privacy policies and practices described in this notice.

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USA PATRIOT Act

Important Information About Procedures For Opening A New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

We apologize for any inconvenience this may cause; however, federal law prohibits us from waiving these requirements.

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