s&w The Malcolm Isaac Charitable Trust Report and financial statements For the year ended 5 April 2024
The Malcolm Isaac Charitable Trust Contents Page Report of the Trustees Report of the Independent Examiner Statement of financial activities Balance sheet Notes to the financial statements 8- 13 Charity Registration No. 1064591
The Malcolm Isaac Charitable Trust Trustees, report for the year ended 5 April 2024 The Trustees present their report and accounts for the year ended 5 April 2024. The accounts have been prepared in accordance with the Deed of Trust and the recommendations of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). Reference and Administrative information The following are trustees of the charity: M J Isaac {deceased 17 September 2024) S G Treherne (appointed 5 October 2016) A C Bays (appointed 23 February 2018) S M Fielder (appointed 13 January 2025) M M Lowe (appointed 13 January 2025) Chairman M Jlsaac (deceased 17 September 2024) The Principal Office of the charity is: OnsLow House, Onslow Street, Guildford. GU14TL Charity Number . 1064591 Structure, governance and management The Trust is an unincorporated Trust, constituted under a Trust Deed dated 1 August 1996 and is a registered charity, number 1064591. The Trust was established by the settlor, Malcolm John Isaac with the sum of £11JJ. The deed was subsequently varied by a Deed of Variation dated 18 August 1997 and Supplemental Trust deeds dated 11 May 2009 and 12 June 2009. The current Trustees are Malcolm Isaac, appointed under the Trust Deed, and Simon Treherne and Andrew Bays, who served as Trustee5 from 5 October 2016 and 23 February 2018 respectively. The power of appointing new Trustees of the Charity is vested in the settlor during his lifetime. The minimum number of Trustees is three individuals. The Trustees are required to hold at least one meeting a year. A quorum at a meeting of the Trustees is two Trustees. Decisions are made on a majority of votes cast at a meeting or by a resolution signed by the Trustees. Every Trustee has one vote at the meeting except the chairman who has a second or casting vote. The Trustees have the following power5 under the Trust Deed: to apply income as it arises, as well as the whole or part of the capital of the Trust Fund, for such charitable purposes as the Trustees shall think fit, in any part of the world. to deposit or invest funds in any manner after taking advice on investing the funds from a suitably qualified financial expert.
The Malcolm Isaac Charitable Trust Trustees, report for the year ended 5 April 2024 to employ agents to transact any business on their behalf, provided that the Trustees exercise reasonable supervision of any person or corporation employed by them, and that all actions exercised by advisors on behalf of the Trustees are reported to them as soon as possible. The Board kpS the skill requirements for the trustee body under review. New Trustees would be appointed if a current Trustee resigns. Risk management The Trustees have considered the major risks to which the Charity is exposed. They have reviewed the risks and established systems and procedures to manage those risks. The Trustees consider belng able to hold adequate funds to meet current ITabilities as constituting the Charity's major risk. The Trustees consider that they hold adequate funds to meet current liabilities. They have reviewed their procedures for the assessment of risk management and consider that they have proper procedures in place. Objectives and activities The objects of the Charity are for the Trustees to apply the income and capital of the trust for such charitable purposes as they shall see fit in any part of the world with a particular interest in supporting medical and horticultural projects in the local area. Achievements and performance During the year, the trustees made discretionary payments of £50,000 to Hampshire Air Ambulance in November 2023. The Trustees made payments totaling £639,882 during the year towards their commitment of a £1 million donation to St Swithun's School. The Trustees confirm this donation Mt5 the public benefit requirement rules.
The Malcolm Isaac Charitable Trust Trustees, report for the year ended 5 April 2024 Financial review Revenue received in the year comprised investment income received on the monies invested and cash held. As at 5 April 2024 the total funds held for the charity amounted to £1,734,732 {2023: £1,813,453). This includes investment income of £61,090 {2023: investment income of £57,884). Investment policy and performance The Trustees. investment advisors submit quarterly investment reports which are reviewed at Trustees, meetings. The investment advisors have been directed to seek a medium risk approach with a balance of income and capital growth. The ultimate objective, being to achieve a good level of income, rising above inflation over the medium to long-term, whilst preserving the capital. During the year ending 5 April 2024 the portfolio returned 7.09% whilst the comparator Strategy 5 index returned 11 .94%. By asset allocation, we outperformed the benchmark in fixed interest due to timely investments around interest rate decisions, we also outperformed in UK equities. However, we underperformed in overseas equities, which makes up a large part of the equity allocation, and alternatives. The underperformance in overseas equites can be attributed to our underweight exposure to North American equities over the period, which experienced strong gains driven by Al excitement and the markets shift in preference from value to growth stocks. Our position in BH Macro, a hedge fund which returned -13.98% made up the bulk of the big underperformance in alternatives compared to the benchmark. 2023 was a difficult year for markets, high inflation data and the subsequent interest rate hikes dampened spirits across the globe. Between April and November most equity market5 made small gains if any at all. Only North America and Japan had any meaningful returns in the months leading up to November, with Japan's gains largely coming from a very weak Yen. It IS only from November onwards, due to fresh hopes that inflation was cooling, and we could finally begin to see interest rate cuts, that markets began to experience robust gains. However, these gains were short lived, as we entered the new year it soon became apparent that interest rate cuts were further along the road than initially thought. This returned markets back to their stagnant State until April. Once again, the only markets that Pushed through the stagnation were North America and Japan, driven by Al fervour and a weak currency respectively. The portfolio, being underweight these areas, did not manage to capture as much of the return. Looking forward, we have recently made changes to the portfolio, drawing down UK equitie5 and increasing the overseas equities exposure, most notably in North America. We have also switched out of the lack lustre hedge fund, BH Macro, investing the proceeds into our more preferred alternatives. With central banks now beginning to cut rates, our greater exposure to North American equities and the Al theme clearly here to stay, we are optimistic for the rest of 2024 and into 2025. Reserves policy It is the intention of the Trustees to maintain the capital of the trust so as to provide a continuing, and hopefully increasing, stream of income in the short and medium terms. The Trustees consider the Charity's finances are in a strong position and enabLe the future to be faced with confidence.
The Malcolm Isaac Charitable Trust Trustees. report for the year ended 5 April 2024 Plans for future perlods In addition to the commitments stated in 'achievements and perforrnance, above, the Trustees have stated during the year that it is their intention to make charitable donations in the future from trust funds and it is not the7r Fntention to hold the trust funds indefinitely. The Trustees have considered the irnpact of covid-19 on the actlvity of the Trust and have concluded that the Tnjst 11 be able to continue to operate as planned for the foreseeable future. It is likely that the impact of the pandemic will increase the needs of some charities and this may result in Increased grant expendlture In the future. Publlc beneflt The princlples of public benefit, as defined by the Charity Commisslon, have been noted by Trustees. The Trustees confirm having given regard to the Charity Commlssion's guidance and state thelr bellef that the aims of the trust are to provtde Identiflable beneflts to the public. Trustees, responslbllltles In relatlon to the flnanclal statement5 The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance wlth appllcable law and regulations. The law appllcable to CharStles In England and Wales requires the Trustee5 to prepare flnancial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practlce Iunlted Klngdom Accountlng Standards and applicable regulations). Under that law the trustees must not approve the flnancial statements unless they are satisfied that they 87ve a true and fair view of the state of affalrs of the charity and of the Incomlng resources and appllcatlon of resources of the charlty for that period. In prepar5ng these financial statements, the trustees are required to: Select suitable account7ng policies and then apply them conslstently; Observe the methods and principles in the Charlties SORP; Make Judgments and estimates that are reasonable and prudent. State whether applicable accounting standards have been followed, subject to any departures dlsclosed and explained In the financlal statements; and Prepare the flnanclal statements on the golng concern basfs unless It Is Inapproprtate to presume that the Charity will continue in operation. The Trustees are respons1ble for keeplng accountlng records which dlsclose with reasonable accuracy the financial position of the Charity and which enable them to ensure that the financial statements comply with the Charitles Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. The Trustees are responsible for safeguarding the assets of the Charlty and hence for taklng reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees Report was approved on 2 &. og Jf and slgned on thelr behalf by Margaret Lowe, tntstee.
The Malcolm Isaac Charitable Trust Independent examiner's report I report to the charity trustees on my examination of the accounts of the charity for the year ended 5 April 2024 which are set out on pages 6 to 13. Responsibilities and basis of report As the charity's trustees you are responsible for the preparation of the accounts in accordance wth the requirements of the Charities Act 2011 ('the Act,). I report in respect of my examination of the charity's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515)(b) of the Act. Independent examiner's statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: accounting records were not kept in respect of the charity as required by section 130 of the Act. or the accounts do not accord wth those records" or the accounts do not comply with the applicable reqrernents conceming the fomi and content of accounts set out in the Charities (Accounts and Reports) Reaulations 28 other than any requirement that the accounts give a 'tnE and fair vie*V' which is not a matter considered as part of an independent examination. I hove no concerns and have come across no other matters in connection with the exomination to which attention should be drawn in this report in order to enable a proper understandins of the accounts to be reached. Signed: Susan Kumar ACA Holden Granat LLP Springfield House 23 Oatlands Drive Weybridge Surrey KT13 9LZ Date: 26 August 2025
The Malcolm Isaac Charitable Trust Statement of financial activities for the year ended 5 April 2024 Unrestricted Funds 2024 Unrestricted Funds 2023 Notes INCOME Donations Investment income Interest on tax repayment Income tax repayment Total income 61,090 57,884 61,090 57,884 EXPENDITURE Cost of raising funds: Investment management COSts 12,511 13,164 Expenditure on charitable activities Total expenditure 226,428 238,939 154,908 168,072 Net expenditure and net movement in funds before gains and losses on investments (177,849} (110,188) Net gains/(losses) on investment Net movement in funds 99,128 (78,721) (195,381) {305,569) Total funds brought forward 1,813,453 2,119,022 Total funds carried forward 1,734,732 1,813,453 The notes on pages 8 to 13 form part of the accounts.
The Malcolm Isaac Charitable Trust Balance sheet 2024 2023 Notes Flxed assets Investments 2,175,880 2,250,513 Current assets: Debtor5 Cash 441 56,105 56,546 441 66,573 67,014 Total current assets Llabllltles Creditors falling due withln one year 10 147,694 154,074 Total current assets les5 current Ilabllltle5 (91.148) 187,060) Credltors falling due after more than one year 10 350,000 350,000 Net current Ilabllltles (441,148 (437,0601 Net a55ets 1,734,732 1,813,453 The funds of the charlty: Unrestrlcted Trust Fund 1,734,732 1,813,453 Total charlty funds 11 1,734,732 1,813,453 The rK)tes at pages 8 to 13 to forni part of these accounts. Approved by the Trustees on and 51gned on thelr behalf by Margaret Lowe, trustee.
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 April 2024 Accounting policies The principal accounting policies are summarised below. Basis of preparation The accounts have been prepared in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland {"FRS 102"), and with the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with FRS 102 issued in 2014 and revised in 2019. The financial statements are also prepared in accordance with the Charities Act 2011. The charity is a public benefit entity as defined by FRS 102. Exemption The charity has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by the FRS 102. the requirements of Section 7 Statement of Cash Flows. Fund accounting The funds held are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the trust and which have not been designated for other purposes. Going concern The trustees are confident that the charity will continue to be a going concern and the financial statements have been prepared on this basis. Incoming resources All incoming resources are included in the Statement of Financial Activities when the trust is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Resources expended All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities, they have been alLocated on a basis consistent with the use of the resources.
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 April 2024 Investments Investments are stated at market value at balance Sheet date. Realised gains and 105ses on investments, calculated on the difference betWn the sale proceeds and their cost are credited or charged to the Statement of Financial Activities {SOFA) in the year of gains or losses. Unrealised gains and I055es representing the movement in the market values during the year are credited or charged to the SOFA in the year of gains or losses. Liabilities Liabilities are recognised on the balance sheet as sn as a constructive obligation resulting from a past event can be reliably measured. Current liabilities represent those liabilities which are expected to be settled within the next 12 months from the balance sheet date. Legal status of the trust The Charity is governed by a trust deed dated 1 August 1996 and is constituted as a charitable trust. Investment income 2024 2023 Interest on deposits Investment income on investments held 61,090 57,884 61,090 57,884
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 April 2024 Expenditure on charitable activities 2024 2023 Independent examiner 923 1,080 Grants (note 5) 218,015 146,000 Accountancy fees 7,418 6,640 Legal fees 72 1,188 226,428 154,908 Grants to institutions approved in the year 2024 2023 At 6 April 2023, approved grants unpaid Provision for grants in earlier year no longer required Grants approved in the year Air Ambulance Rowans Hospice Rosemary Foundation R P Chester Memorial Trust Co Ltd St Swithun's School 480,000 510,000 50,000 50,000 50,000 50,000 40,000 6,000 118,015 Grants paid in the year {218,015) {176,000) At 5 April 2024, approved grants unpaid 480,000 480,000 Grants falling due for payment within one year 130,000 130,000 Grants falling due for payment after one year 350,000 350,000 480,000 480,000 Staff costs and numbers There were no employee5 of the charity in the year to 5 April 2024 (2023 - none). 10
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 April 2024 Investments at market value 2024 2023 Balance brought forward Additions Disposals Change in market value in the year 2,250,513 343,409 {517,170) 99,128 2,594,119 503,469 (651,694) {195,381) Balance carried down 2,175,880 2,250,513 Proceeds from sale of investments Disposals at cost 517,170 {404,395) 651,694 {542,259) Realised surplus 112,775 109,435 Gain/(loss) on investment assets: Unrealised gains/ (losses) Realised gains/(losses) (13,647) 112,775 {304,816) 109,435 99,128 {195,381) All investments are held to provide an investment return. During the year the following investments exceeded 5% of the total investment value: First Sentier Investors Findlay Park Funds PLC JP Morgan Asset Management UK Ltd Brown Advisory Funds Analysis of investments by category of holding: 114,717 146,883 137,995 120,320 109,603 134,422 137,389 106,946 Fixed interest Alternative Investments Equities 378,560 294,741 1,502,579 214,480 439,731 1,596,302 2.175,880 2,250,513 11
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 April 2024 Investments at market value (continued) Analysis of investments by location: 2024 2023 Investments held in the UK Investments held outside the UK 1,144,790 1,031,090 1,232,890 1,017,623 2,175,880 2,250,513 Debtors 2024 2023 Due within one year Income tax repayment 441 441 441 441 Cash held 2024 2023 Evelyn Partners Investment Management Investment Account Dividend Account 26,089 30,016 39,149 27,424 56,105 66,573 10 Creditors: 2024 2023 Amounts falling due within one year: Grants Accountancy Independent Examiner's fee Investment Management fee 130,000 13,143 1,428 3,123 130,000 17,449 3,240 3,385 147,694 154,074 Creditors falling due after more than one year: Grants 350,000 350,000 12
The Malcolm Isaac Charitable Trust Notes to the accounts for the year ended 5 April 2024 (cont.) 11 Net assets of the funds of the charity Net current liabilities Fixed assets Fund balance Unrestricted funds 2,175,880 (441,148) 1,734,732 2,175.880 (441,148) 1,734,732 12 Related party transactions and Trustees, remuneration and expenses No member of the Board of Trustee5 received any remuneration for his/her services or reimbursed expenses during the year end 5 April 2024 (2023: none). 13 Taxation As a charity, the Trust is exempt from tax on income and gains falling within section 524 to 536 Income Taxes Act 2007 or S256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity. 13