Provided by CHUCK UNRUH, Chair
The Life Member Asset Trust (Trust) is a US Chess Grantor Trust. The Trust has eleven Trustees elected by the Delegates at the annual meeting. Trustees invest and manage life member assets and the funds from the sale of US Chess Life Memberships. Dividends and interest from investment activities reimburse operations for the annual Life Membership expenses. Our Trustees have a combined US Chess leadership experience measured in decades.
The Trust assets and funds are separate from operational accounts. In the last fiscal year, US Chess operations and trustees worked together to sell the Crossville Headquarters building and property after the Executive Board approved the headquarters move to St. Louis. Last August became a scramble for signatures and approvals, with some coming as far away from one trustee visiting Chile. Our Executive Director was paramount in keeping all parties moving forward in this very important sale. The Trust was fortunate, the building and property sold and closed for a net value of $750,402. (LMA Trustees Report to the Board of Delegates Regarding Sale of US Chess Property in Crossville, Tennessee.)
US Chess Life Membership sales are solid and the Trust welcomes the 52 new life members through 3 quarters of the fiscal year, starting June 1, 2022. Our last Life Member Survey focused on inclusion and several notifications over a period of six months. Survey results confirm at least 7,500 Life Members with good addresses. US Chess membership is approximately 104,000 and Life Members represent 7% of the general membership.
Over the last seven years, Trustees have set investment strategy and tactics for portfolio distributions adequate to meet the future Life Member expenses. The investment program has cost averaged into conservative dividend producing holdings. The public investment markets to date face headwinds given the recent rapid increase in interest rates, yet the longer-term results continue to meet the goals and guidance of the original investment plan.
Each year, the Trustees approve a strategic investment plan for the Life Membership Assets and funds under management named after the city of the next Delegates Annual Meeting. Grand Rapids is the current investment plan. Meanwhile, the Trustees begin a review this June of the proposed Norfolk #2 Investment Plan. Like Grand Rapids, the Norfolk #2 focuses on defensive equity and fixed income. Currently, the Trust portfolio is 44.8% invested in public securities and 55.2% Cash Deposits or US Dollars.
The Trustees will present the new investment plan for the 2023-24 fiscal year at the Friday Finance Workshop during the Delegates Annual Meeting. Investment results for the previous year and a brief strategy discussion are on the agenda, along with a short question and answer period.
LMA Trust Assets Under Management as of March 31st, 2023:
2022 2023 Gain/(Loss)
Land $264,000 $-0- ($264,000)
Building net Depreciation $360,545 $-0- ($360,545)
TD Ameritrade Securities $821,722 $ 1,556,634 $ 734,912
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Total: $ 1,446,267 $1,556,634 $110,367
Teamwork, dedication and ownership style management by our volunteer Trustees has made the Life Member Grantor Trust a success since its creation on January 1, 2013. I appreciate and thank all of the Trustees for their service and continued dedication to LMAT goals.
